For the second consecutive time, pandemonium broke out at the annual general meeting (AGM) of Shaw Wallace & Company (SWC) yesterday, with shareholders forcing a poll on all the resolutions once again, after the first resolution was defeated by a show of hands.
Employee shareholders also raised slogans against the companys management. The poll will be held today at Wallace House. The announcement on poll was made by SWC managing director, R K Jain, after the first resolution pertaining to the adoption of the balance sheet and profit and loss account for the fiscal 1996-97 was defeated by a show of hands.
R K Jain was chairing the 51st AGM of the company in the absence of chairman Chhabria.
Other resolutions referred for voting pertained to the appointment of P L Narasimhan as a director of the company and his re-appointment as a whole-time director for five years from November 27, 1997 to November 26, 2002, both days inclusive.
Regarding the appointment of Narasimhan, Jain said that since no specific charges have been brought against him, his induction into the board will be in the interest of the company. He is needed by the new board to give finality to all decisions, he said. Two other remaining resolutions, the re-appointment of directors P K Pandit and P J Rao and the auditors S R Batliboi & Co and Lodha & Co, were also put to vote.
The AGM turned stormy towards the end and slogans were raised against the management. But Jain continued to read out the resolutions one after another and immediately afterwards left G D Birla Sabhaghar, where the meeting was being held, without responding to reporters queries.
The disgruntled members of the All India Shaw Wallace Employees Federation attended the AGM wearing badges which stated Remove Chhabria, save Shaw Wallace. The union leaders brought out a number of allegations against the management.
Earlier, addressing the shareholders, Jain said that internal generation, fresh infusion of funds, proceeds from the sale of non-core businesses and non-performing assets are the four pivots of the companys financial restructuring plan.
Merchant bankers Lodha Capital Market has been appointed to oversee the companys financial restructuring, disinvestment and debt management. The first report on the restructuring plan will be submitted within the next 10 days, added the managing director.
To set the ball rolling, the board of directors approved an $10 million external commercial borrowing and a rights issue which is expected to raise around Rs 70-80 crore. To obtain Sebi approval for the rights issue, necessary applications will shortly be made. Internal generations will be to the tune of Rs 100 crore, said Jain.
Jain announced that the company had recently set up a technical collaboration with Morrison Bowmore, a Scottish firm, for a malt distillation plant at Maharashtra Distilleries and a grain distillation facility at Pampasar Distilleries.
We envisage operational profits of nearly Rs 100 crore during the current year, Jain said. The beer business will earn a profit of Rs 20 crore, claimed the managing director.
During the five-month period between July and November this year, SWC registered a cumulative sales increase of 46 per cent over the corresponding period last year, he added.
Since no specific charges have been brought against Narasimhan, his induction into the board will be in the interest of the company - R K Jain, managing director, SWC
