New Delhi, Apr 24 (UNI) The Union Cabinet today approved the merger of Bharat Refactories Limited (BRL) with Steel Authority of India Ltd(SAIL) under section of the Companies Act.
This would entail a wavier of non-plan loan of Rs 145 crore sanctioned in 2002-03 out of the total loan of Rs 161.49 crore outstanding as on March 2006.
The merger will also include conversion of the balance amount of plan loan of Rs 16.50 crore.
Speaking to reporters Information and Broadcasting Minister Priya Ranjan Dasmunsi said this will allow BRL to redeem the seven per cent non cumulative preference shares worth Rs 12.05 crore due for redemption on April 2005 by fresh issue of (fully paid up) shares of equivalent amount as per provisions of Section 80 of the Companies Act, 1956.
All taxes in respect of the profits and gains, including accumulated losses and unabsorbed depreciation and investment allowance of the business carried on by BRL before merger will be payable by SAIL subject to concessions and reliefs under the Income Tax Act, 1961 (43 of 1961) as a result of the proposed merger, the minister said.
UNI RT AK GC2128