scheme of revival of our company

[Rajeev. K.]

Read synopsis of the scheme of Rehabilitation of our company. now company is acting on the basis of this order 
The Hon'ble Board for Industrial and Financial Reconstruction ("the BIFR")vide its order dated 12.02.2014 received on 22.02.2014 has sanctioned the RehabilitationScheme of the Company [herein called asthe Sanctioned Scheme (SS -14)].
(a) The Scheme envisages the following broad strategy for revival of the Company:
i. Settlement with secured creditors at 100% of the principal amount.
ii. Technical Restructuring of conductor division, Switchgear division, Relay Division,Machinery Division through in house research and development & by making substantialinvestment in up gradation of technology and strengthening the after sale servicesnetwork.
iii. Conversion of preference capital into equity share capital at par.
iv. Sacrifices by promoters and equity shareholders involving write down of theircapital by 90% and infusion of fresh loans / Equity for working capital and /or shortfallsif any.
v. Mobilisation of Funds: The promoters propose to bring Rs 153 crores towards revivalof the company. Present promoters have arranged Volta Impex Pvt Ltd as strategic investor("SI") and the SI proposes to bring 30 % of the amount proposed to be brought inby the promoters. The SI has agreed that in case the cost escalates it will induce furtherfunds as unsecured loans.
vi. Restructuring of existing outstanding liabilities (except secured loans) keeping inview the expected future cash flows in order to achieve complete repayment of dues of the Company
vii. Payment of all outstanding labour dues as per the agreement entered /to be entered into between the Company and labour unions.The dues will be paid within three months oft he sanction of scheme by BIFR.
viii.Grant of reliefs and concessions from Central Government and Authorities /Departments and Bodies thereof, various State Governments and Authorities / Departments and Bodies thereof, Secured Creditors and other Stakeholders / Parties concerned.
(b) The Company is of view that reliefs and concessions sought from Income TaxDepartment, Central Board of Excise and Customs, Director General of Foreign
Trade and various authorities of states from state of Andhra Pradesh, Odisha, Kerala,Rajasthan and Uttar Pradesh, Indian Railways, Provident Fund
Department, ESIC Department, labour unions, particularly permission of renewal offactory lease lands from the respective states are very essential for successful implementation of the sanctioned scheme.
(c) Since the various concessions and reliefs as mentioned hereinabove are still in the process of approval and confirmation and post the sanction of the scheme four appeals being preferred before the Hon'ble AAIFR against the subject scheme which have been admitted, the Company has been advised that as a prudent approach the effect of the scheme should not be crystallized and accordingly the Company has decided not to provide any interest on secured loans for the year under consideration.Thus the required accounting adjustments in respect of Preference Share Redemption Reserves, Securities Premium Account, Investment Allowance Reserves, Secured Loans, and other liabilities, etc. are not given effect and consequently accumulated deficit balance of the Statement of Profit &Loss has not been reduced. Had this been accounted for, the accumulated deficit balance ofthe Statement of Profit & Loss would have been reduced to that extent.
Against the appeals filed at Hon'ble AAIFR, the Company has been advised that this wil lnot jeopardise the Scheme.