The Hindu Business Line : Shaw Wallace's net worth exceeds paid-up capital

Shaw Wallace & Company Ltd (SWC) is no longer a sick company in view of the company's net worth becoming more than its paid-up capital. However, keeping in view the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, the company has submitted a report in the prescribed format to the Board for Industrial & Financial Reconstruction clarifying the development.

The directors' report in the balance sheet for the fiscal ended March 31, 2006 has stated that the company's erstwhile management (before taking over by the UB Group) was instrumental for erosion of more than 50 per cent of the net worth.

The report said that the profit generated by the company during the first quarter of the financial year had wiped out the entire accumulates loss. Consequently, the net worth has become more than the paid-up capital. It was pointed that the joint venture of the company with Mysore Breweries Ltd has been terminated during the year under review.

The company has entered into a separate assignment and trademark licence agreement in respect of "Haywards" and " Royal Challenge".

The financial impact of the above arrangements has been taken into consideration in the audited accounts of the company for the financial year. The company's annual general meeting will be held here on Wednesday.

Incidentally, SWC has registered a turnover of about Rs 115.5 crore for the financial year ended March 31, 2006.

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