India: United Spirits seeks shareholders’ nod to move to BIFR

Liqour maker United Spirits Ltd (USL) has sought shareholders’ approval to refer the company to the Board for Industrial and Financial Reconstruction (BIFR) as accumulated losses as on March 31, 2015 had touched 86 per cent of its peak net worth during the past four fiscal years, according to a stock market disclosure.

As per the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (“SICA”), if the accumulated losses of an industrial company at the end of a financial year results in erosion of 50 per cent or more of its peak net worth during the preceding four financial years, such company is required to report the fact of such erosion to the BIFR.

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