Himalya International to setup cold chain facility, to raise funds

Himalya International Ltd has announced that the Board of Directors of the Company at its meeting held on October 30, 2006, inter alia, has transacted the following:

1. Establishment of Cold Chain Facilities in the Country:

Discussed that the demand for fresh mushrooms and specialty mushroom and fresh specialty vegetables and specialty dairy products is growing within the country. The Board also took note that the company has already taken decision to exit from 100% EOU Scheme to EPCG scheme of Government of India. The Board discussed that cold chain shall be established for this purpose. The board further discussed the plans to set up marketing network for processed food products under own Brand within the country.

2. Raising of Funds through Issue of Equity Shares on Right basis:

Subject to the approvals of the members at the General Meeting of the Company, 11016053 Equity shares of Rs 10/- each fully paid up be issued in the proportion of One fully paid up Equity share of Rs 10/- each for every Two fully paid up Equity shares of Rs 10/- each held by the Equity shareholders of the Company as on record date and at such price as may be decided by the Board of Directors of the Company.

The board further discussed that the proceeds of right issue shall not be sufficient to finance to present and future requirements of the funds. Hence the board decided to issue share warrants which may be converted into equity shares at a later date on preferential basis. The board proposed to issue fifty lakh nos of share warrants as per the applicable guidelines of SEBI. For this purpose following resolution was passed.

Fifty lakhs share warrants may be issued on preferential basis to be priced as per the applicable guidelines of SEBI. Each share warrant shall be converted into one equity share of the company having face value of Rs 10/- each after a period of eighteen months. Necessary resolution for this purpose may be prepared and got approved from the members of the company.

3. Increase in the Authorised Share Capital of the Company and alteration in the Memorandum & Articles of Association of the Company.

Increased in the Authorised Share Capital of the Company from Rs 25,00,00,000.00 divided into 2,50,00,000 equity shares of Rs 10.00 each, to Rs 40,00,00,000.00 divided into 4,00,00,000 equity shares of Rs 10.00 each and consequential amendments in Memorandum & Articles of Association of the Company.

4. Investment in Doon Valley Foods Pvt Ltd.

The Board discussed that the Company is importing spawn from United States of America. But in order to have good quality spawn with in India, the board decided to invest in Doon Valley Foods Pvt Ltd., which shall set up a world class spawn lab in Paonta Sahib. The Company shall have exclusive rights to purchase the whole of the produce of Spawn produced by Doon Valley Foods Pvt Ltd.

5. Sole Buyer Agreement with Doon Valley Foods Pvt Ltd.

Discussed that Doon Valley Foods Pvt Ltd is setting up a plant to manufacture breaded and battered appetizers. The board decided that necessary steps will be taken to enter into agreement with Doon Valley Foods Pvt Ltd to have a sole buyer agreement with the company.

6. Filing of Legal Suit with Regulatory Commission:

The board discussed that the company is having a dispute with The HP State Electricity Board. The company suffered huge losses in 2002 due to diversion of load from feeder installed by the company for its exclusive use. Similarly the board levied peak load violation charges peak load exemption charges on the company. Whereas Being a 100% EOU these charges should not have been levied. Many correspondences have taken place since then but the electricity board did not resolve the matter. The board decided that necessary steps may be taken to file a legal suit against the electricity board with The HP State Electricity Regulatory Commission.

7. Annual Increment of Employees:

The board took note of and approved the annual increment as recommended by the remuneration committee.

Source : Equity Bulls

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