Danlaw Technologies - Dissolution Of Joint Venture With M/S. CNA Group Ltd & Mr. G V Subba Rao

Danlaw Technologies India Ltd (DTIL) has informed that in the year 2005 the Company has entered into a Joint Venture Agreement with M/s. CNA Group Ltd (CNA) and Mr. G V Subba Rao. A Public Limited Company viz. M/s. Danlaw CNA Systems Ltd (DCNA) has been floated for the purpose of carrying out the objectives of the said JV. Initially it was proposed to invest Rs 2 Crores in toto. It was later on decided to start with about Rs 25 Lakhs out of which DTIL has paid for its 40% stake.

As DTIL wants to concentrate on its core competency and therefore as it wouldnt be able to devote its time for the JV, it has been decided by the management to dissolve the Joint Venture and offer the shares held by it in the JV to the other JV partners (pursuant to the JV Agreement). M/s. CNA Group Ltd (one of the JV partners) has given an in-principle acceptance for the said offer.

The following decisions have been taken by the Company in this regard:

a. Dissolution of Joint Venture (entered into by the Company via Joint Venture Agreement with M/s. CNA Group Ltd and Mr. G V Subba Rao)

b. Divesting the equity shares held in M/s. Danlaw CNA Systems Ltd at their face value.

c. Withdrawal of nominations of directors by DTIL (nominated previously onto the Board of DCNA).