The resolution, passed at the annual general meeting in Mumbai on Friday, authorised the management to buy back its equity shares or such other permissible securities, not exceeding 10 per cent of its paid-up capital from members of the company either from the open market or from the holders of odd lots or from the holders of shares that may be issued under the Employees' Stock Option scheme or as permitted by the law.

Addressing the 79th annual general meeting of the company on Friday, chairman FA Mehta announced a tax free dividend of 30 per cent to its shareholders. This, together with the tax on dividend will represent a total outgo of Rs 4.1 crore, he added.

The company will also introduce a stock option for permanent employees and its managing/whole time directors. The shares may be allotted directly to the employees or allocated in accordance with a stock option scheme in accordance with the necessary provisions. The stock option scheme shall not involve an issue/allocation of shares/options representing more than 10 per cent of the company outstanding subscribed and paid-up capital at that time.

Forbes Gokak will also, for the first time combine the shipping agency activity of both, the Forbes division and Patvolk division into one synergised Forbes Patvolk shipping division, according to Mehta.

The Hydro Power Plant, Madan Power House at Dhupdal, which was commissioned towards the end of 1997 last year was in operation for a major part of the year and generated 90 lakh units. Interest cost for the year was 3.57 per cent of the gross income, compared with 4.12 per cent for the previous year, the chairman added.

On the Svadeshi mills issue, Mehta hinted at cuts in revenue allocation in the form of employees salaries as the production at the mill has come to a standstill.

He added that Svadeshi has already submitted its plan of rehabilitation to the IDBI, appointed by the BIFR as its operating agency.