IDBI Ltd has attached the assets of SM Dyechem's glycol
plant near Pune which has accumulated losses
of Rs378.02 crore for the fiscal 2004 for defaulting
on loan repayments under the Securitisation Act.
a notice to the Bombay Stock Exchange, the company,
promoted by S M Shetty, said ''IDBI has taken possession
of assets of the glycol divison in Pune last Saturday
under the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002''.
Consultants and Engineers, consultants and architects,
carried out an inspection at the instance of IDBI and
in May 2001 valued the plant at Rs112 crore with a distress
sale value of Rs91 crore. The net book value of these
assets, as per the company, was as high Rs 413 crore.
Dyechem's glycol unit had an interest liability of Rs349
crore for the fiscal 2004 and another Rs1,725 crore
was the accumulated interest liability as on March 2004.
M Dyechem, makers of snack foods, was planning to sell
off its non functional Glycol plant to raise funds for
its revival. The glycol unit of the plant was closed
for the last eight years.
the company had sought some waivers from BIFR seeking
interest concessions, the latter had rejected it.
along with a host of other FIs, has an exposure of Rs611
crore in the company, which has been referred to the
BIFR as the company completely eroded its net worth.
BIFR has even referred the company for winding up but
the management has appealed against it to the Appellate
Authority of Industrial and Financial Reconstruction
IDBI converted itself into a bank, it has taken several
steps to cut its bad loans. While a majority of its
bad loans worth Rs12,000 crore have been transferred
to a special purpose vehicle, IDBI has kept some bad
loans in its books.
company made a loss of Rs57 crore for the fiscal 2004
on sales of Rs147 crore. According to its auditors,
its losses were higher at Rs429 crore as against the
reported figure of Rs 57 crore. The accumulated losses
would have been Rs2,222.9 crore as against the reported
figure of Rs426 crore.
to the company's auditors, S K Kavathekar & Co,
the company has defaulted on loans of Rs55 crore to
debenture holders since 1995 and term loans of Rs531
crore since 1993. Working capital loans worth Rs79.9
crore remained unpaid since 1998.