Held on 14 November 2014
Frontier Information Technologies announced that the Board of Directors of the Company at its meeting held on 14 November 2014, inter alia, has considered and approved the Draft Restructuring Scheme and authorized the Managing Director to submit it before BSE under clause 24 (f) of Listing Agreement and before the Honorable High Court of Andhra Pradesh. The Managing Director is further authorized to appoint Advocate and other consultants and initiate necessary measure as may be required to implement the scheme under section 391 to 394 of the companies Act, 1956.- The Highlights of the scheme
The Company has negative net worth as on 30 September 2014 amounting to Rs. 1,34,90,440. Under the circumstances management is unable to raise any working capital or funds required for the regular business of the Company. The Board of Directors of the company decided to restructure the issued and subscribed capital through scheme of arrangement as per section 391-394 of the companies Act 1956, in the following manner -
Selling off the Share Premium amount and General Reserve Against part of the Accumulated Losses for an amount of Rs. 27,95,25,000/-.
Reduction of Paid up capital against accumulated losses to the extent of Rs. 12,64,48,800/- which is equal to 95% of the Subscribed and Paid up capital.
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