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| Exchange Disseminated Time 03/11/2015 15:44:29 | Sundram Fasteners Ltd has informed BSE about the following with respect to the Company's joint venture - Windbolt GmbH, Germany:-
The Company has transferred its shares in Windbolt GmbH, Germany (with whom the Company had entered into Joint Venture (JV) during the year 2011 for manufacture of Bolts for the wind energy industry in Germany with an investment of EURO 33,332 constituting 24.99% equity stake in the total capital of EURO 133,332) for a consideration amounting to EUR 19,999 to its Joint Venture Partner, Mr. Wolfgang Naumann. As a result, the shareholding of the Company in Windbolt GmbH, Germany has been reduced from 24.99% to 9.9998%. Consequently, Windbolt GmbH ceased to be an associate of the Company. The contribution of Windbolt GmbH (for the year ended December 31, 2014) to the consolidated turnover of the Company is 0.069% (Rs 216.20 lakhs) and to Profit before Tax is -1.81 % (- Rs 329.24 lakhs) as at March 31, 2015.
In view of the uncertain future outlook without any sign of improvement in German market and owing to the current negative order book situation, Windbolt GmbH has filed a petition for insolvency in accordance with the German Laws. The Company has initiated its involvement and claim assertion process as per local laws of Germany through its Legal Advisors. Currently, the loss is not determinable. However, it is expected that it will not be material.
There will not be any benefit to; the Promoter / Promoter Group / Group Companies as a result of aforementioned transfer of shares. The Company and its Joint Venture Partner, Mr Wolfgang Naumann in Windbolt GmbH are only concerned in the transaction. The above mentioned transaction shall not be classified as a related party transaction. |
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