City-based Aurobindo Pharma Limited has informed that its board has approved a scheme, which envisages utilisation of the company's capital redemption reserve account (CRRA) of Rs 9.03 crore. The gains arising on the buyback of foreign currency convertible bonds (FCCBs) together with the CRRA amount would be credited to 'Reconstruction Reserve Account', which would be utilised for adjusting the expenses of the nature such as diminution in value of investments and impairment of goodwill and assets.
The scheme does not entail issue of any shares or other consideration to any of its shareholders, the company stated in a release. A company spokesperson said that the buy-back of FCCBs would go on up to Dec ’09 and the gains arising out of it would be known only at that time. The scheme is subject to the approval of the shareholders, AP High Court, and stock exchanges and other regulatory bodies.
