Disclosure on Reference to BIFR as a 'Sick' Company
As per the Audited Balance Sheet as on 30th September 2004, the Networth of Artson Engineering Limited ('AEL') was fully eroded due to the accumulated losses. As a consequence, AEL was referred to the BIFR in the year 2004 as a sick company under the provisions of Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Company's reference as a sick company was registered under Case No. 152/ 2004 with the BIFR.
At the hearing held on 17th May 2006 before the BIFR, Bank of India was appointed as the Operating Agency to examine viability of the Company and if found feasible, to formulate a rehabilitation scheme.
The Operating Agency submitted a Draft Rehabilitation Scheme on 5th June 2007 and the same was circulated to various parties for their consent.
At the hearing held on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of the Company and the Order sanctioning the scheme of rehabilitation was received on 18th December, 2007 (Sanctioned Scheme).
Admission of TATA Projects Limited
In terms of the Sanctioned Scheme, Tata Projects Limited (TPL), has been admitted as the Strategic Investor and Co-promoter of the Company. TPL has committed financial assistance of more than Rs. 28 Crore, of which it has already infused funds aggregating to about Rs. 23 Crore.
TPL has acquired 75% stake infusing a sum of Rs.2.77 Crore towards Equity contribution and by virtue of which AEL became a subsidiary of Tata Projects Limited on 4th January 2008.
TPL has also taken the Management Control of the Company and has inducted its representatives as Nominee Directors on the Board of the Company.
In addition to the support in the rehabilitation of the Company as per the Sanctioned Scheme, the Company is in a position to derive benefits from TPL on many grounds including professional management, project execution intellect, quality services, TPL's strong presence in core sectors of the economy and good governance practices.