Press Release

Cabinet approves restructuring of balance sheet of Scooters India Limited, Lucknow 

Cabinet approves restructuring of balance sheet of Scooters India Limited, Lucknow 

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for restructuring of balance sheet of Scooters India Limited, Lucknow (SIL) by way of:

1. reduction of equity of Rs. 85.21 crore in the share capital of SIL held by Government of India against accumulated losses. The reduction would be deemed to have taken effect as on 31.03.2013 and

2. freezing the interest on the Non-Plan loan of Rs. 1.89 crore released to SIL during 2012-13 from the date of its release to the company and conversion into equity of the outstanding principal amount of Rs. 1.89 crore.

With this approval, the balance sheets of Scooters India Limited from 2012-13 onwards will be regularised and further restructuring will be effected accordingly. This is also expected to clear a hurdle in the process of disinvestment of the company.

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