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The company has informed the Exchange that pursuant to the restructuring initiative undertaken to improve company's overall profitability and performance, the Company announced a Voluntary Retirement Scheme at its manufacturing Ductron Castings Unit at Hydreabad which was accepted substantially by all the employees of the unit and the Board of Directors at their meeting held on August 14, 2015 have approved the closure of the unit.
The Ductron unit at Hyderabad took shape in 1970. It has a capacity of 36,000 MT and is fitted with a high pressure line and BMD machines.
The company had announced VRS at DCU unit at Hyderabad. Exceptional items of Rs 54.80 crore and Rs 70.98 crore for the quarter and nine months ended June 30, 2015 mainly comprises expenditure incurred towards voluntary retirement arrangements, impairment losses and provision in respect of non-recoverability towards assets pursuant to such restructuring/discontinuance of business operations.
Hinduja Foundries is one of the largest foundries in the country with the capacity to produce cylinder block and head ranging from 25 kgs to 500 kgs.
From castings for automobiles and tractors to industrial engines, construction equipment and power generation equipment, Hinduja Foundries meets the stringent requirement of diverse segments. It even caters to the exceptionally high standards of Defence applications.
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The company has reported a net loss of Rs 98.52 crore during the quarter ended June 2015 as compared to Rs 46.18 crore, a year ago. The significant accumulated loss has eroded the networth of the company. In February 2012, the company has intimated to the BIFR about erosion of more than 50 per cent of the company's peak networth.
Meanwhile, the company has also decided to surrender a land parcel in the state of Telegana. The company had acquired the land from Andhra Pradesh and Industrial Corporation. The company said that it could not implement the project since their is a delay in basic infrastructure facilities, including power, waters and others being made available to the company.
While the company had been seeking extension of time from the Government authorities to implement the project, the Telegana State Industrial Infrastructure Corporation has sought to cancel the allotment of the aforesaid land and has asked the comapny to surrender the possession of the land by October 20, 2014 for which the company had sought further extension of time upto September 2015.
However, the Telegana State Industrial Infrastructure Corporation Ltd has requested the company to surrender the land without giving any further extension. The company is exploring various options including surrender the land.
