Ahmedabad, Aug 20: A large section of Nirma Ltd's shareholders expressed disappointed as the management did not announce any bonus issue as was the general expectations. s per their expectation at the 17th annual general meeting (AGM) here on Wednesday.

The reason was disclosed by chairman Karsanbhai Patel at the company's 17th annual general meeting here on Wednesday. Explaining the company's stand Patel said that both Secured Premium Notes worth Rs 74.54 crore and Non Convertible Debentures of Rs 6.51 crore were likely to mature in future which was as good as bonus.

When shareholders insisted on bonus announcement at the AGM itself, Patel told the gathering that the issue was left to the board of directors to take a decision.

Similarly, shareholders were also not satisfied at 25 per cent dividend for 1996-97 as compared to 20 per cent the previous year. Patel told the shareholders that amalgamation of three companies (Nirma Detergent Ltd, Nirma Soaps & Detergents Ltd and Shiva Soaps & Detergents Ltd) and setting up two plants under its backward integration project at Alindra near Baroda and Kalatalav near Bhavanagar at a total cost of Rs 1,500 crore were top priority during the year.

As per the accounts approved at the AGM, the principal amount of SPNs will be repaid in four equal amounts of Rs 50 each together with a premium of Rs 60 each at the end of fourth to sixth year and Rs 70 at the end of the seventh year from the allotment date.

Similarly, the NCDs will be redeemed at par in four equal instalments of Rs 50 each at the end of the fourth to seventh year from the date of the allotment.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.