The Hindu Business Line : Berger Paints EGM okays 1:2 bonus

AT the extraordinary general meeting held here on Monday, the shareholders of Berger Paints India Ltd approved the resolution relating to the issue of bonus shares in the ratio of 1:2.

The shareholders also approved another resolution relating to the delisting of the company's shares from the stock exchanges in Ahmedabad and Delhi.

Earlier, addressing the shareholders, Mr K.S. Dhingra, Chairman of the company, said the reserves and surplus of the company as on March 31, 2003, amounted to Rs 141.29 crore which should be further supplemented with retained earnings of the current year.

The profit for nine months ended December 31, 2003 was up by 36 per cent over the same period of the previous year and barring unforeseen circumstances, the 12-moth performance should be equally encouraging, he said pointing out that the last bonus issues in the ratio of 1:1 was declared in 1998-99.

The rate of dividend even with the augmented capital climbed from 40 per cent to 60 per cent in 2002-03 and a 35 per cent interim declared for the current year. "It has always been the company's policy to share the benefits of its performance with all stakeholders and we feel that the bonus issue in the ratio of 1:2 is now due and a just reward for the patience of our share holders," Mr Dhingra said.

The company's new factory at Jammu with all its fiscal benefits will be operational by March 31, 2004, he added.

The company's shares, which are required to be compulsorily traded in the dematerialised form, are traded in negligible volumes at stock exchanges other than NSE and BSE. The delisting of the shares from stock exchanges in Ahmedabad and Delhi would save costs to the company. The company's shares however would continue to be traded in NSE, BSE and CSE.

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