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K.R. Srivats

NEW DELHI, Jan. 26

A SCHEME of amalgamation, arrangement and reconstruction of the Rs 815-crore nylon tyre cord fabric manufacturer SRF Ltd's businesses has received the nod of the Delhi High Court.

The Madras High Court had already sanctioned the scheme of amalgamation, arrangement and reconstruction during the last week of December 2001.

"The Delhi High Court has also sanctioned the scheme. But the company is yet to receive the order of the Delhi Court. The scheme will be effective from the dates on which certified copies of the orders of the Courts are filed with the appropriate Registrars of Companies,'' a company official said.

The board of SRF Ltd had in July last year approved the de-merger of smaller businesses of the company - polyester films, fishnet twine/yarns and engineering plastics together constituting about 15 per cent of sales of SRF - into a newly incorporated company by the name of SRF Chemicals Ltd (SRFCL). The name of SRF Chemicals is expected to be eventually changed to SRF Polymers Ltd.

It had also given its nod for the merger of Tyrecord Fabrics Ltd (TFL), a 100 per cent subsidiary of SRF, with SRF Ltd. For the year ended March 31, 2001, TFL recorded a turnover of Rs 46.50 crore.

As part of the consideration for transferring the smaller businesses of SRF to SRFCL, all shareholders of SRF are likely to receive one equity share of Rs 10 each of SRFCL, credited as fully paid up, for every 10 shares of Rs 10 each of SRF held by them.

SRF had reported a net profit of Rs 40.19 crore on net sales of Rs 692.86 crore for the year ended March 31, 2001.

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