Business Line reported that the promoters of the ailing Hinduja Foundries will not let the company slip into sickness.
Just last week, the company decided to report its status to the Board for Industrial and Financial Reconstruction on erosion of 50% of the company’s peak net worth during the last four financial years by its accumulated losses of INR 291 crore as on September 30th.
Mr R Seshasayee chairman of Hinduja Foundries, on behalf of the promoters (Ashok Leyland and Hinduja Automotive), said that that this was just a statutory compliance under the Sick Industrial Companies Act indicating the company is potentially sick. There have been lapses. But we assure you that promoters are fully committed to supporting the foundry and steering it forward.
Mr Seshasayee said that the promoters have promised to infuse INR 300 crore into Hinduja Foundries, of which INR 150 crore has been invested. Global consulting firm McKinsey has been roped in to set the company on the growth path again.
The company’s net worth for 2011-12 was INR 185 crore, down from INR 408 crore in FY 2010-11.
Borrowed funds stood at INR 673 crore and turnover was INR 1,029 crore.
Source:
http://www.steelguru.com/indian_news/Hinduja_Foundries_promoters_to_infuse_INR_300_crore/296847.html
