CCEA gives nod for financial restructuring plan of Andrew Yule Company

03 May 2013 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) has given its approval for the financial restructuring plan of Andrew Yule Company (AYCL). The plan involves conversion of outstanding Government of India (GOI) loan of Rs 41.52 crore into equity, waiver of interest of Rs 33.43 crore accrued thereon, waiver of differential interest arising out of reconciliation of books of accounts of the company and Pay and Accounts Office of Rs 5.56 crore and writing-off accumulated losses of AYCL against GOI’s equity share capital of Rs 12.95 crore.

The proposal approved by the CCEA will be referred to Board for Industrial and Financial Reconstruction (BIFR) for approval and thereafter will be implemented within a period of six months. The conversion of outstanding GOI loan into equity and waiver of interest will ensure availability of increased working capital required for the enhanced targeted business volume of the company, and help increase growth and profitability of the company.

Besides, writing off of accumulated losses of the company against GOI’s equity share capital, as per Securities and Exchange Board of India (SEBI) guidelines, will ensure better price for AYCL shares at the time of disinvestment.

Andrew Yule Company is engaged in manufacturing/ production of bulk tea, industrial fans, ventilation equipment, air pollution control equipment & systems, effluent treatment plants, power & distribution transformers, high tension and low tension switchgears and circuit breakers, auto voltage regulators and allied equipments. 

Andrew Yule Share Price

38.37 -0.76 (-1.94%)
20-Dec-2024 16:59 View Price Chart
Peers
Company Name CMP
Tata Consumer Produc 889.75
CCL Products (India) 746.45
Mcleod Russel 47.55
Goodricke Group 268.70
Jay Shree Tea 131.25
View more..
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.