Bloom Dekor cancels dividend declared at 6%

Bloom Dekor Ltd has announced that the Board of Directors of the Company has recommended dividend @ 6% in the Board Meeting held on July 29, 2006 though the Company had incurred loss in the financial year 2005-2006, subject to approval of shareholders in the General Meeting. Since the Company is setting up a new door project, it had approached the existing bankers for enhanced credit limits as well as Term Loan.

Based on the financial results of the Company and future expansion plans the bankers had advised the Company to refrain from declaring / issuing dividend from reserves, in order to retain earnings as well as to improve various financial ratios, the same agenda was discussed at length in the AGM held on September 16, 2006, and unanimously decided to cancel the decided as proposed by the Board.

Source : Equity Bulls

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