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United Spirits Ltd, a Diageo Group company, has informed the BSE that the Extraordinary General Meeting of the equity shareholders of the company will be held on January 22 here.
The meeting will be held to consider and approve the report of the board of directors after which the company will be directed to report to the Board for Industrial and Financial Reconstruction (BIFR).
In accordance with the requirement of Section 23 of the Sick Industrial Companies (Special Provisions) Act, (SICA) 1985, the company shall report to BIFR as the accumulated losses of the company as on March 31, 2015, have resulted in erosion of more than 50 per cent of its peak net worth during the immediately preceding four financial years.
As per the audited annual accounts of the company for the financial year ended March 31, 2015, which were approved by the shareholders of the company at the 16{+t}{+h} AGM held on November 24, 2015, the company’s accumulated losses as at March 31, 2015, is 86 per cent of its peak net worth during the four financial years preceding the financial year ended March 31, 2015.
Accordingly, this EGM is being convened to consider and approve the report of the board of directors on such erosion and its causes, and the measures being taken as per the relevant provisions of SICA.
And also to approve the reporting of such erosion to BIFR in terms of Section 23 of SICA.
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