Company Name:
VOLTAMP ENERGY
Decision of the Board of Voltamp Energy SAOG on further investment in Voltamp Manufacturing Company WLL, Qatar (VMCQ), a 51% subsidiary of Voltamp Energy SAOG taken by circulation on the evening of 13th January 2010.
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The Board deliberated in detail the Management’s request for further investment of QR 15 Million in VMCQ. After careful examination of all facts noted the following:
· There was a delay in getting factory approval.
· The product of VMCQ is not yet approved in Qatar by the local utility company KAHRAMA and hence they are unable to sell in the local market currently.
· Accumulated loss as per provisional accounts of VMCQ as on 31.12.09 is QR 8,537,578. VMCQ has suffered substantial losses in last two years which has eroded the capital of the Company by 57%.
In view of the above, the Board decided not to invest further as the same will not be in the best interest of the Company and Voltamp Energy Shareholders and advised the representative directors on VMCQ Board to explore all options within the next couple of weeks to limit further losses to the Company.
However, the Board resolved that Voltamp Energy will honor its commitments to date.
We will provide you with an update as soon as we obtain further information.
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