Shimoga Technologies Limited
Rehabilitation Progress
As per the Summary Record of Proceedings of the hearing held on 16.01.2014 by the Hon. Board for Industrial and Financial Reconstruction (BIFR), the Rehabilitation Scheme submitted by the Company before the Hon. BIFR has been sanctioned.
Copy of the Sanctioned Scheme is awaited for its implementation.
The Summary Record of Proceedings of the hearing held on 16.1.2014 and posted on the website of BIFR today, could be accessed at www.bifr.nic.in under `Download Proceedings’ (Case No.269/2002).
The Hon.BIFR vide their Order dated 16.09.2013, have formulated a Draft Rehabilitation Scheme (DRS) for the revival of the Company through reverse merger of Smiths & Founders (India) Limited with Shimoga Technologies Limited, which is being circulated to all concerned for consent as required u/s 19(2) read with section 19(1) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Order copy alongwith the Draft Rehabilitation Scheme has been posted on their website on 23.10.2013.
Further, the Board has directed that short particulars of the said Scheme be published in two leading newspapers (one National Daily and Local Daily in vernacular) having circulation in the locality where the registered office of the Company is located, inviting objections/suggestions within 60 days from the date to the Order. The Board will hear objections/suggestions with regard to the DRS at the hearing to be held on 16.12.2013.
The Draft Rehabilitation Scheme could be accessed at www.bifr.nic.in under `Download Proceedings’ (Case No.269/2002)'.
The Hon.BIFR in the hearing held on 18.04.2013 have issued the following directions:
(i) The Show Cause Notice (SCN) for winding up issued to the Company is dropped.
(ii) De-rating of more than 60% is allowed.
(iii) IDBI (Operating Agency) to submit the modified DRS (Draft Rehabilitation Scheme) of the Company to Board’s Office within two weeks.
(iv) Board’s Office to examine the modified DRS of the Company expeditiously for its early circulation.
(v) The Bench fixed the next date of hearing on 05.08.2013.
The Hon.BIFR in the hearing held on 07.02.2013 have issued the following directions:
(i) The company is directed to show cause within a period of 30 days why winding up of the company should not be ordered. The company’s response should be submitted to the Board, with a copy to the OA and all secured creditors.
(ii) The Bench fixed the next date of hearing on 18.04.2013.
The Bench Officer of Board for Industrial and Financial Reconstruction has vide letter
dated 11th December, 2012 observed few deficiencies in the Rehabilitation Scheme
submitted by the Operating Agency, IDBI Bank. Though major deficiencies are of
clarificatory nature, the lone major deficiency observed is ‘non acceptance of proposed
90% de-rating of equity shares and should be scaled down to 60%’.
On conveying the same to amalgamating Company, Smiths & Founders (India)
Limited, (S&FIL), they have at the Extraordinary General Meeting of members held
on 17th January, 2013 have withdrawn their consent accorded for amalgamation of
the Company with Shimoga Technologies Limited (STL). Consequently, S&FIL have
requested the Company to refund the lease deposit of Rs.3.25 Crores and take back
possession of the plant and machinery leased to them, at the earliest.
Consequently, in view of the non availability of funds for day to day transactions, the
Board of Directors of STL have decided to request the Hon. BIFR to arrange financial
assistance of Rs. 5.00 Crore to STL to take back and run the manufacturing unit or Order
winding up of the Company, without any further delay.
The next hearing of Hon. BIFR is 7th February 2013.
The Hon.BIFR in the hearing held today directed that reply to the deficiency letter dated
11.12.2012 issued by the Hon.Board to IDBI Bank Ltd. and to the Company be submitted
to the Board Office within two weeks. The deficiency letter, inter alia , has directed that
the Reduction in Paid Up Capital of the Company from the proposed 90% should be
scaled down to 60%.
The Hon. BIFR in its hearing held on 15.10.2012 directed a) The Board’s Office to examine the DRS of the Company submitted by OA ( IDBI ) expeditiously, for its early circulation. b) Fixed the next date of hearing on 18.12.2012 and it may be cancelled, if the Board is able to circulate the DRS before this date.
IDBI Bank Ltd., the Operating Agency appointed by the Hon. Board for Industrial and Financial Reconstruction ( BIFR ),have filed fully tied up Draft Rehabilitation
Scheme (DRS) of the Company, which is considered viable by them, with BIFR on 16th August,2012 for placing it before the Hon. Bench for consideration / issue of further directions in the matter.
The Hon’ble BIFR directs IDBI Bank to examine the Draft Rehabilitation Scheme and submit the same to the Board within four weeks.
The Hon’ble BIFR directed IDBI Bank to convene one more joint meeting of all stake holders and discuss the Draft Rehabilitation Scheme submitted by the Company in detail within Two Weeks and directed the Company to file its reply to the IDBI Bank within Four Weeks thereafter.
Joint Meeting of all concerned held by IDBI Bank.
TheHon’ble BIFR directed IDBI Bank to convene a Joint Meeting of all concerned and submit its recommendation / comments on the Draft Rehabilitation Scheme within a period of Six Weeks before the Hon’ble BIFR Board.
Company submits Draft Rehabilitation Scheme.
The Hon’ble BIFR Directed the Company to file Draft Rehabilitation Scheme within a period of Four Weeks to IDBI Bank, Directed IDBI Bank to call a Joint Meeting of all concerned within a period of Two Weeks and submit its recommendations / suggestions to the Hon’ble Board within a further period of One Week.
The Hon’ble BIFR Bench declared the Company sick u/s 3(1)(O) of SICA and appointed IDBI Bank as the `Operating Agency’ to formulate a Draft Rehabilitation Scheme.
Rehabilitation Process