CG Power plans Rs 135 cr capex, to close some overseas subsidiaries
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CG Power Industrial Power Solutions Ltd has planned a capex of Rs 135 crore this fiscal, the company said.
The capex to be funded out of internal accruals will be on balancing, debottlenecking and modernising the facilities at the plants for productivity improvement.
CG Power also said barring four wholly owned overseas operating subsidiary companies in Sweden, Germany, the Netherlands and the US, rest of the subsidiaries are being closed or in the process of being wound up.
Entities which are under investigation, would be closed after obtaining necessary approvals of the authorities, the company said.
CG Power said it is ensuring business continuity during Covid-19 pandemic by working with extended and staggered shifts in the plants and digital transformation through online customer inspections, online service advice, sharing pictorial procedures with onsite customer personnel, remote support for testing equipment.
The company closed last fiscal with a total income of Rs 2,568.06 crore and a net loss of Rs 208.93 crore down from a total income of Rs 3,226.36 crore and a loss of Rs 1,799.20 crore registered in FY20.
However CG Power has posted a net profit of Rs 673.77 crore during the last quarter of last year.
Last year CG Power was acquired by Murugappa Group's Tube Investments of India Ltd.
Under the one time settlement scheme, the entire debt of Rs 2,160 crores were settled at Rs 1,000 crore -- (Rs 650 crore in cash and the rest by recognising a new debt of Rs 150 crore and issue of zero coupon non-convertible debentures aggregating to Rs 200 crore).
The company's account was classified as "standard" and the company availed new lines credit from State Bank of India.
Operational creditors (suppliers, contractors) dues aggregating to Rs 650 crore were paid and employee salary arrears of Rs.42 crore were also settled, the company said.
According to CG Power, it has to receive an aggregate sum of Rs 2,948 crore from the erstwhile promoter entities/connected parties - while recovery steps are continuing, the company has provided for the entire amount.
The recasting of accounts for the 5 year period as directed by the ANCLT is underway and the company is confident of completing the same in the current financial year.
