Shriram EPC net loss widens to Rs 70.5 crore

The company is awaiting necessary approvals for promoters' fund infusion

Shriram EPC Ltd has seen its net loss widening to Rs 70.53 crore for the quarter ended September 30, 2014, as compared to the net loss of Rs 41.52 crore during the same period of last fiscal year. The total income from operations dropped by 28 per cent to Rs 119.20 crore for the quarter, as against Rs 165.82 crore registered during the corresponding period of last fiscal year.

The company has said that the Corporate Debt Restructuring (CDR) Empowerred Group approved its CDR packaage in September, this year and the broad terms of the scheme includes restructuring the existing debt facilities by the company from the CDR Lenders including revision of interest rates, principal payment schedule and grant of centrain new facilities.

On October 31, 2014, the shareholders has approved a proposal to allot equity shares for Rs 210 lakh to the promoters, Shriram Industrial Holdings Ltd, and the company is awaiting necessary statutory approvals for completing the allotment process, it said. Of the Rs 210 crore, Rs 160 crore is in connection with the CDR scheme and Rs 50 crore will be coming as fresh infusion, said the company.

It added that a major contract awarded by a customer in Iraq was cancelled in February 2014 by the customer due to a dispute and the company has taken action in India as well as Iraq for early recovery of dues. Similarly, regarding a power project in India which came to a standstill owing to financial difficulties, the company has moved legally to secure its interest. The total exposure to these two projects is Rs 322.52 crore, which is considered fully realisable, it added.