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RESTRUCTURING
Date: 28th JULY09 By -
14
11.83
12
9.86 9.66
10
8
5.38
6 4.43
4
2
0
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
18 15.86 16.02
16
14
12
10
7.61
8 6.65
6 3.81
4
2
0
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
2 1.86 1.81
1.8 1.61
1.6 1.41
1.4 1.21
1.2
1
0.8
0.6
0.4
0.2
0
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Interest Cover
14
11.83
12
9.86 9.66
10
8
5.38
6 4.43
4
2
0
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
contd......
PBT had gone down compared to 2008
Lead to drop in EPS
No dividend payout for the current
financial year
Drop in the capital adequacy ratio (15%
to 12%)
Shareholders’ approval on March 5, 2009
Got approval on 20th April under section
78,100 to103 of “The Companies
act”,1956
Finally restructured on May 11, 2009
Capital Reduction
The special provision of Rs. 323.53 Cr. Is made
a) To make provision for the standard assets, for
an amount no exeeding Rs. 200Cr.
b) To write off the bad debts/loan losses/other
non recoverable assets, for an amount not
exceeding Rs. 100 Cr.
c) Provision for the doubtful receivables, for an
amount not exceeding Rs. 23.53 Cr.
Infuse a capital of Rs. 300 Cr, in the form
of fully convertible cumulative preference
shares
Exit from personal loan business
Concentrating on vehicle financing, home
equity, corporate mortgage
To create provision for standard assets
for an amount not exceeding Rs. 200 Cr.
The company could get back to normal
disbursement in the last quarter of the
financial result
The liquidity position has substantially
improved
Improvement in the credit rating
Constantly enhanced shareholders’ value
Improvement in future profitability
Increase in the EPS
Annual report of Cholamandalam DBS
Finance Ltd
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