Excel Crop Care to hive off its seeds business

Excel Crop Care has decided to hive off its seeds business into a separate company to achieve greater focus in this business. The company over the past two years has developed a small seeds business. In the financial year 2008-09, the sales turnover of this business was approximately Rs 2.40 crore.

At the meeting of the board of directors of the company held on April 3, 2009, the doard has decided to transfer as a going concern the company’s seeds business to Harvest Inte-Agro, a Gujarat based closely held company, with effect from July 1, 2009.

The transfer of business would involve transfer of various current assets, liabilities, trade marks, copyrights, licences, registration, contracts, etc. at book value as also transfer of employees of the seeds business.

The board also decided to take 75% stake in Harvest Inte-Agro through subscription of shares of face value of Rs 3.75 crore at par.