Ambalal Sarabhai clarifies on news item regarding demerger, VRS

With reference to the news item appearing in a leading financial daily titled "Ambalal to spin off 3 divisions, plans VRS", Ambalal Sarabhai Enterprises Ltd has clarified that the Company the published news item is not based on any formal information or press release from the Company but seems to be based on impressionistic and informal talks. The Company will clarify the following factually correct position:

1. The Company has sold its 50% stake in Sarabhai Zydus Animal Health Ltd to partner Cadila Healthcare Ltd and has already informed.

2. The Company has been making losses over the past at any years and has net loss of Rs 6.4 crore for the financial year ended March 31, 2006 with the revenue falling by 15% compared to previous years i.e. March 2005,. This is based on published data and is available with the records of the stock exchange.

3. The Company has launched VRS schemes from time to time as part of its restructuring exercise. The Company will inform the Stock Exchanges when the next scheme is announced.

4. The report regarding spinning off of the three divisions, the Company has no such plans at present. However, the Company is continuously looking at various possibilities for its successful restructuring.

Source : Equity Bulls

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