October 08, 2008

Bharat Refractory merger with SAIL approved

India’s union cabinet has approved the merger of Bharat Refectories Limited in Jharkhand with Steel Authority of India Limited, under Section 396 of the Companies Act, 1956, deemed effective from April 1st 2007.

Mr Priyaranjan Dasmunsi information & broadcasting minister told reporters that 'Every whole-time officer, including the whole time director, or other employees of the BRL will become an officer or employee, as the case may be, of SAIL.”

He added that “The merger will set off the additional loss of INR 30 crore on restructuring of current assets based on assessment by the SAIL, also against the paid up equity share capital of INR 227.19 crore.”

The government would allow the BRL to 'redeem 7% non cumulative preference shares worth INR 12.05 crore due for redemption on April 1, 2005 by fresh issue of fully paid up shares of equivalent amount as per provisions of Section 80 of the Companies Act, 1956.'