Uniroll Leather yet to commence commercial production

Uniroll Leather India Ltd has announced that the Profit & Loss Account has not been prepared for the year ended March 31, 2006 as the Company is yet to commence its commercial production.

The development expenditure amounting to Rs 53.949 million (Prev. Year Rs 53.237 million) have been incurred as on March 31, 2006. The same will be capitalised appropriately at a later date.

The Company in order to meet its immediate financial requirements and also to pay the term loan to the PICUP Ltd, availed unsecured loans from director and associates. The Company is not paying any interest on it. The Company has created security in favour of some of the lenders as per resolution passed at the 12th AGM held on September 29, 2004.

The lenders served notices on the Company to repay their loan. The Company having no other alternative except to dispose of its properties passed resolution under Section 192A read with section 293(1)(a) of the Companies Act, 1956 on May 26, 2006. The Company is in the process of disposing of its properties to repay the loan.

Source : Equity Bulls

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