Daewoo Motors India Ltd (DMIL) yesterday received its shareholders nod to go ahead with its planned preferential issue, bonds, financial instruments and debentures. A resolution to this effect was passed at the companys 14th annual general meeting (AGM) yesterday.
Besides re-appointing Vivek Bharat Ram, Y C Kim, M S Bahng and C M Song as directors, it was also resolved to raise the limits of borrowing, mortgage and acquiring of assets.
It was resolved that the board of directors of the company will have the power to issue, offer and allot preference shares of Rs 100 each, whether at par or at a premium, provided the aggregate amount of the issue which may be made in one or more tranches shall not exceed Rs 250 crore.
The board was further authorised inter-alia to finalise the terms and conditions of the issue, including the total amount of issue, nominal value, rate of dividend, amount of premium and to make or carry out any alterations or modifications.
The board was also empowered to issue bonds, financial instruments, secured redee-mable non-convertible, partly convertible or fully convertible debentures to the existing members by way of rights issue or to the public through prospectus.
The size of the issue, including the premium, if any, shall not exceed Rs 450 crore. However, the size, ratio and other details on the issue would be decided later.
The shareholders of the company also approved the change in name of the company from Daewoo Motors (India) to Daewoo Motors India.
The companys authorised share capital was also altered from Rs 1,500 crore divided into 150 crore equity shares of Rs ten each to Rs 1,500 crore divided into 125 crore equity shares of Rs ten each and 2.5 crore preference shares of Rs 100 each.
Speaking at the AGM, DMIL managing director S G Awasthi said the company has earned a net profit of Rs 1.43 crore during the 1996-97 fiscal as against Rs 87.50 crore in the previous financial year. Total income was Rs 963.38 crore against Rs 2157.20 crore the previous year.
He attributed this shortfall to the slow growth in the mid-size premium car market in India.
However, Awasthi stated that the company was committed to further investments in the country. Plans are afoot to bring in new models in every present and emerging segments of the car industry.
The company, he said, is working to soon launch a small car in the popular mini segment. Besides, work is going on to strengthen facility to bring in during the years to come various other models including one in the utility vehicle segment. It also plans to introduce Daewoo commercial vehicles in the current fiscal.
