Tehran- General meeting of Ceram Ara Industries Company approved a capital boost of 622 percent in late May.

The meeting approved a proposal to increase the capital from shareholders’ claims and cash contributions.

Mohammad Javad Parchami, chief executive of Ceram Ara Industries Company, said that the capital increase was needed for multiple reasons such as reforming financial structure to be exclude from the coverage of article 141, preventing liquidity withdrawal, settling debts to major shareholders, improving financial ratios such as liquidity ratio, proprietary ratio, maximizing profitability and advancing development plans.

Parchami explained that the company would grapple with increase in bank debts and other financial expenditures, leading to a disruption of production if the raising of capital did not go ahead.

“There are important projects on the agenda, which will positively influence the performance of the company,” he stressed.

Talks by the managing director was followed by a report of legal auditor and inspector to the meeting that suggested the increase of the capital by 622 percent. Then, shareholders validated by a vote the capital increase from 135bn rials to 9,744.38 trillion rials.

The company plans to make another increase in its capital by revaluation of assets after this capital boost was registered and when other roadblocks are removed.