Interfit Techno Products, a subsidiary of Interfit India, has proposed to convert the debt that it owes to the parent company into preference shares. The company is to meet on January 2, 2009 to consider the proposal to issues and allot redeemable non-convertible noncumulative preference shares on preferential basis. Interfit Techno is engaged in the manufacture of stainless steel pipe fittings and ball valves. It has taken a loan of Rs 5 crore from Interfit India.
“We owe the parent company some debt. We are converting it into preference shares so that we end up paying dividend to the parent company only when there is profit,” said Mr AV Palaniswamy, director, Interfit Techno Products. He said the subsidiary has not made any profit in the last ten years.