ICSA networth fully erodes, referred to BIFR

The company reported a net loss of Rs 823.48 crore on revenues of Rs 420.05 crore in the 15-month period ended June 30, 2013

ICSA (India) Limited, a Hyderabad-based provider of embedded software solutions and infrastructure deployment services for the power sector, on Wednesday said its networth had fully been eroded and turned negative as at the end of 15-month accounting period ended June 30, 2013.

As per the requirement under law, a reference under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1956, was made to the Board for Industrial and Financial Reconstruction (BIFR), Ministry of Finance, on September 10, 2013.

“The reference has been registered by the BIFR as case No 70/2013 and intimated to the company vide its letter dated October 15, 2013,” ICSA said in a filing to the BSE.

Efforts to contact the company's top management, including its chairman and managing director C Bala Reddy, proved futile.

In its clarification to the stock exchanges on October 3, 2013, ICSA informed the BSE that it had declared the audited financial results for the 15-month period ended June 30, 2013, on August 29, 2013, and thereafter there were no specific information and announcements to declare or to be declared from its side.

“There was no much activity during this period (15-month period ended June 2013),” it had said. ICSA (India)   reported a net loss of Rs 823.48 crore on revenues of Rs 420.05 crore during the period.

“Since the accumulated losses of the company, as on June 30, 2013, is more than 100 per cent of the peak networth in the previous three accounting years of the company, the board of directors has noted the same and taken a view to make a reference to BIFR,” it had said.

The company, which was listed on the Indian bourses on August 5, 2000, had in August 2008 acquired the entire machinery and equipment of Delhi-based ECE Industries Limited for Rs 4 crore to manufacture energy meters from its Hyderabad-based plant.

The promoter (chairman and managing director C Bala Reddy) and the promoter Group hold 9.14 per cent in the company with the remaining 90.86 per cent being with the public. Its scrip ended the trade at Rs 4.21 on the BSE, down 0.71 per cent, over the previous close of Rs 4.24 a share.