The Cabinet Committee on Economic Affairs today approved a proposal for re-scheduling the dates for redemption of preference shares by Mazagon Dock Ltd. (MDL) from 1999-2000 to 2007-08.
The CCEA today permitted Mazagon Dock Ltd. to pay (a) Arrears of dividend accumulated till the year 2005-06 amounting to Rs.47.08 crore in two equal annual instalments in 2006-07 and 2007-08 with interest @ 0.5% per annum from 2006-07 onwards; and (b) Yearly dividend on the outstanding balance of preference shares from 2006-07. Delayed/Defaulted payment of annual dividend on outstanding preference shares from 2006-07 onwards would attract interest @1% per annum.
The CCEA today granted extension of time to MDL to redeem outstanding preference shares of Rs.98.98 crore in 4 equal annual instalments commencing from Financial Year 2007-08 onwards. Any further default/delay on redemption of (rescheduled) outstanding preference shares (Rs.98.98 crore) from 2007-08 onwards in 4 annual instalments would attract interest @1.5% per annum for the period of delay.
The entire outstanding preference shares of Rs.98.98 crore will be redeemed, thereby facilitating recovery of all the outstanding loans of Government, which were converted into preference shares in 1999.
All the arrears of dividend payable on preference shares amounting to Rs.40.08 crore accumulated upto 2005-06 will be received by Government in two years in 2006-07 and 2007-08.
Payment of yearly dividend on outstanding balance of preference shares will commence from 2006-07.
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YSR/HK