Southern Petrochemicals Ltd (SPIC) today said the company's Board has decided to wind up its subsidiaries in Mauritius and Dubai after obtaining the necessary regulatory clearances.
"The board of directors in their meeting have approved the commencement of winding up of SPIC Fertilizers and Chemicals Ltd, the wholly owned subsidiary in Mauritius and SPIC Fertilizers and Chemicals, Dubai subject to regulatory approvals", the company said in a BSE filing.
"Full provision has been made for the investments held in this subsidiary in earlier years," it added.
The move comes in the backdrop of its project in Dubai which did not take off due to lack of supply of gas to the project site.
According to company's annual report, the company made investments of Rs 184.53 crore in equity share capital of SPIC Fertilizer and Chemicals Ltd, Mauritius which had invested in SPIC Fertilizers and Chemicals, FZE, Dubai.
The objective for setting up the plant was to produce ammonia and urea in Jebel Ali FreeZone, Dubai.
"Since the project did not materialize due to non-allocation of gas, the subsidiary company began to dismantle the plant and machinery at the site," it said.
