AGM held on AUGUST 12, 2002
Voltas no 2 player in refrigerator
Voltas has gained market share in the refrigerators segment and currently
holds the number two position against number five last year, said
the company`s chairman Ishaat Hussain, while addressing the annual
general meeting of the shareholders.
Hussain also informed the shareholders that the company`s board plans
to set off deferred revenue expenditure (DRE) pertaining to voluntary
retirement scheme (VRS) of Rs 53.17 crore against the share premium
account. As on March 31, 2002, Voltas had a credit of Rs 59.71 crore
in its share premium account.
The proposal for financial restructuring and recommended application/utilisation
of the share premium account for setting off the DRE is in accordance
with the provision of Section 78 read with Section 100 of the Companies
Act, 1956, which will be subject to approval of the shareholders and
confirmation of Bombay High Court.
Voltas has streamlined manpower by introducing VRS during the last
three years. The cost of VRS, including the additional gratuity and
leave encashment liability arising therefrom, is treated as DRE and
is amortised to the profit and loss account over a period of 36 months.
On the issue of Voltas International Ltd, Hussain said that the 100
per cent subsidiary of Voltas was merged with self with effect from
April 1, 2001 and the manufacturing plant for room air conditioners
at Dadra was transferred to the joint venture company Fedders International
Inc, USA, with effect from October 1, 2001.
`In the air conditioner market, Voltas is able to compete better
as the cost of manufacturing air conditioners by the joint venture
company is low and has been coming down. The product is far superior
and has additional features,` said Hussain.
Source : IRIS