Kolkata: Tata Metaliks Ltd has decided to seek the approval of its shareholders to authorise the board to borrow loans to the tune of Rs 120 crore during the current financial year of 2004-05. The shareholders’ approval will be sought at the 14th annual general meeting (AGM) of the company to be held here on July 24, 2004. 

In the annexture to the notes of the AGM, the company management has stated that at the first AGM of the company held on July 21, 1991, it had accorded its consent to the board of directors for a borrowing limit of Rs 50 crore, excluding temporary loans obtained from the company’s bankers in the ordinary course of business. 

“Taking into account the further requirements of additional finance for the major expansion programmes undertaken by the company as well as enhancing the existing capacity by 60 per cent, a fresh resolution has been proposed to increase the borrowing limit by the board of directors from Rs 50 crore to Rs 120 crore,” the management said in its annexture to the notice. 

Meanwhile, in the management discussion and analysis on the company, the Tata Metaliks management has stated that the company has demonstrated strict control over working capital operations and work management. It said that throughout the last financial year of 2003-04, the company did not call for any of the pre-sanctioned funds from banks for the purpose of meeting working capital requirements.