Hindalco to go for financial restructuring, EGM on April 2

Aluminium major Hindalco is going for financial restructuring so that huge costs incurred by it on acquisitions do not impact the operating results, the company informed the Bombay Stock Exchange in a filing today. The company has called for an Extraordinary General Meeting on April 2 to seek shareholders' approval. The company said its growth strategy has led to incurring of various costs and that it would continue to incur these costs in future. "The present global economic scenario especially in the commodity space had an adverse impact on its domestic and overseas operations which may result in impairment in value of its assetsinvestments," the company said. It said it is going for financial restructuring so that its operating results would not be impacted by such costs. The company is going for restructuring which may result in reduction of its capital through a scheme of arrangement to be overseen by the Bombay High Court. "This scheme will result in non-operational costs being charged against a reserve created for the purpose out of the securities premium balance of the company and which would be classified as, Business Reconstruction Reserve Account," it said. The company, however, has not indicated to what extent the capital would get reduced.