Kasat Paper to restructure share capital, change name

Kasat Paper & Pulp Ltd has announced that the Board of Directors of the Company at its meeting held on December 02, 2006 has taken the approved BIFR Scheme on record and following steps / decisions were taken as per order of Honorable BIFR.

1. Forfeiture of Partly Paid Up Shares:

The Company has not received call money on 23,73,200 equity shares of Rs 10/- each. The Company has already sent required notices to the shareholders as per the provisions of the Companies Act, 1956. The last notices were sent to them on September 01, 2004. Honorable BIFR has approved the rehabilitation scheme recording the proposed forfeiture of shares. Consequent to the approval the scheme by the BIFR, the 23,73,200 Equity shares of Rs 10/- each on which call money is pending, the board has passed the resolution and thus forfeited 23,73,200 equity shares of Rs 10/- each.

2. Increase in Authorised Share Capital of the Company:

As per the approved revival scheme, new promoters are required to bring in required funds in the Company by way of Capital and Loans. The Board has approved increase in the authorized capital from existing Rs 6 Crore divided into 60,00,000 Equity Shares of Rs 10/- each to Rs 11 Crore divided into 1,10,00,000 Equity Shares of Rs 10/-each subject to the approval of members in General Meeting.

3. Restructure of Share Capital as per BIFR Order

The Issued Share Capital of the Company consists of 52,62,060 equity shares of Rs 10/- each aggregating to Rs 5,26,20,600/- Out of the above-mentioned shares Company has not received call money on 23,73,200 equity shares of Rs 10/- each. As per the Revival scheme approved by Honorable BIFR the Company has forfeited 23,73,200 equity shares of Rs 10/- each on which call money was not received.

Thus after forfeiture, the Share Capital of the Company is 28,88,860 shares of Rs 10/- each. Further as per the Scheme approved by honorable BIFR. The Company has written off the Share Capital of the Company by 90% of its value.

After forfeiture and reduction of capital as above, the Share Capital of the Company will consists of 2,88,886 equity shares of Rs 10/- each aggregating to Rs 28,88,860/- as against the pre-reduction capital of 28,88,860 shares of Rs 10/- each, aggregating to Rs 2,88,88,600/-.

The letter will be sent to all the shareholders whose shares are forfeited. The remaining shareholders will be asked to submit the old shares certificates and new share certificate after reducing the share value by 90% of the value will be issued. The old distinctive nos will be cancelled and new distinctive nos will be allotted to the share certificates, which will be issued hereafter.

4. Allotment of Shares to Stressed Assets Stabilization Fund

As per the OTS with SASF and rehabilitation scheme approved by Honorable BIFR the Company has allotted 5,00,000 fresh Equity Shares of Rs 10/- each to Stressed Asset Stabilization Fund.

5. Change of Name

Regarding change of name the directors of Company decided to call the Board Meeting on December 05, 2006.

Source : Equity Bulls

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