oswali chemicals ltd Management discussions


OSWALI CHEMICALS LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS ACCOUNTS: As shareholders are aware, the company is endeavouring to settle the creditors to the extent permitted by its financial position. The Promoters, to whom the company owed Rs.6,49,08,191/- have agreed to waive the recovery of this entire amount, in view of the companys stringent financial position. The Directors express their deep sense of gratitude to them for their magnanimous gesture in this regard. The Company had been granted a Development Loan of Rs.13.25 lakhs by National Research Develo-invent Corporation (N.R.D.C.), New Delhi in 1986. As the company did not repay the loan, N.R.D.:. filed a case before the Additional District Judge, Tis Hazari, New Delhi, for recovery of the loan along with interest. The court pronounced its decree in November 2005 in favour of N.R.D.C., as per which the company has to pay Rs.53,59,201.25 to the latter. We have requested N.R.D.C. to accept a sum of Rs.30 lakhs in full settlement, and to waive the balance amount. Negotiations are going on in this regard.