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Kohinoor Foods Ltd. - Updates

By Religare
|

Kohinoor Foods Ltd has informed BSE that:

"vide our letter dated 1st June, 2011, we intimated to Stock Exchanges that we have entered into certain Agreements including a Rice Supply Agreement (RSA) with M/s Kohinoor Speciality Foods India Private Limited (KSF). In terms of the Rice Supply Agreement, our Company M/s Kohinoor Foods Ltd.(KFL) is exclusive rice supplier of KSF to sell within the Territory of India for a period of 7 (Seven) Years including a lock in period of 5 (Five) years.

However we came to know through reliable sources that KSF had started taking supplies of Rice in complete violation of RSA from an alternate supplier since year 2013-14, without any bona fide cause or notice to KFL. We have been objecting to this violation through various communications last being our email dated 26.06.2015. To pre-empt the charges leveled by us of continuous violation/breach of RSA, KSF unilaterally sent us a notice of termination of RSA alleging that the termination is with cause.

There is no substance in the allegation made by KSF and a suitable reply based on facts has already been sent to KSF and their attorney. In our reply we have established that the agreement has been breached by the KSF by souring supplies from an alternate supplier, during the lock in period. We have also stated that since KSF has violated the RSA without cause and without giving due notice as provided in RSA, KFL may also be treated free from the provisions of various agreements.

In this regard we are taking all necessary steps to protect the interest of the Company."







Story first published: Monday, September 28, 2015, 12:20 [IST]
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