Coca-Cola will go ahead with its investment of $100 millions in three bottling plants to come up in Gujarat, Maharashtra and Karnataka with or without Mr. Ramesh Chauhan, an official spokesman told Business Line from Bombay. “We hope that he will be our business partner. We will make every effort (to make him come around) That is why we have not fixed any deadline. But if things do not work out with Mr Chauhan, Coca-Cola will go ahead with its plans; we will proceed,” the spokesman said.

DCA may scrap debenture redemption reserve

The Department of Company Affairs is considering the World Bank recommendation to scrap the Companies Act provision for mandatory creation of a debenture redemption reserve (DRR) out of the current profits of a company. Clause 161 of the Act stipulates that a company, issuing debentures, shall create out of its profits a fund, DRR. This reserve shall be used exclusively for redemption of debentures. The clause makes it obligatory for a company to credit security in favour of debenture holders within three months from the date of the debenture issue.

FIs line up to issue preference shares

Major Indian financial institutions are set to join the bandwagon of issuers who are tapping domestic investors to place preference shares. The list of institutions which are planning to issue preference shares includes ICICI, HDFC and GIC Housing. According to management sources at ICICI, the FI is planning to place preference shares over the next couple of months aggregating around Rs 75 crores. The tenure of the instrument and the rate of dividend is yet to be finalised. This is expected to be done after clearance from the shareholders shortly.

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