Incredible Industries Ltd

Incredible Industries Ltd

Adhunik Industries Limited public limited company was incorporated in August 23 1979. The Company is engaged in production of iron and steel related rolled products such as TMT bars wire rods H. B. Wire etc mainly used in construction industry. Besides it has a manufacturing plant in Durgapur West Bengal.SEBI vide its letter-bearing no. SEBI/HO/ISD/OW/P/2017/18183 dated August 7 2017 duly addressed to the three Stock Exchanges forwarded a list of 331 suspected shell companies as identified by Ministry of Corporate Affairs and directed the Stock Exchanges to identify the companies listed on their trading platform and place trading in all such listed securities in Stage VI of the Graded Surveillance Measure (GSM) with immediate effect. The Company was also aggrieved by the communication of Securities and Exchange Board of India (SEBI) addressed to the three stock exchanges on August 7 2017 and the consequential order passed by National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on August 7 2017 itself by placing securities of the Company in GSM Stage VI with effect from August 8 2017. The Company had made a representation to SEBI on August 9 2017 against the impugned communication of SEBI dated August 7 2017 and also provided the required information asked by National Stock Exchange of India Limited (NSE) vide its communication dated August 9 2017 and BSE Limited vide its communication dated August 10 2017. Since no action was taken on the said representation dated August 9 2017 and after providing required information to NSE and BSE the Company had filed an appeal to Securities Appellate Tribunal (SAT). The SAT after hearing both the parties directed SEBI and the Stock Exchanges vide its order dated September 212017 to reverse their decisions dated August 7 2017 which were all passed without hearing the appellant.The Company had sought approval of shareholders by way of postal ballot on January 12 2018 for enhancement of limit of related party transactions. However due to frequent market fluctuations and volatility in the iron and steel market the Company need to procure larger quantity of raw materials than the expected quantity from the related party M/s. Adhunik Alloys & Power Limited in order to keep the purchase of raw materials of the Company cost effective. Thus the company exceeded the earlier limit approved of Rs.400000000/-. Further pursuant to Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) 2015 the Company is seeking approval of shareholders for ratification of the same by way of postal ballot. The notice of postal ballot is approved by the Board of Directors in its meeting held on 16th May 2018.SEBI had passed an interim order on 21st September 2018 against the Company on the basis of certain 'prima facie' observations in the matter of suspected shell companies and had advised the Company to submit their reply to the points contained in the Interim Order and also give an opportunity of personal hearing if the Company wish to avail. The Company had filed its reply to the observations made in the Interim Order within the prescribed time. The Company had also requested SEBI to grant an opportunity of personal hearing in the matter and pursuant to that SEBI had granted the opportunity of personal hearing to the Company. During the course of said hearing SEBI had sought certain additional documents from the Company which it had submitted within the prescribed time limit. The Company had not received any further communication from SEBI against additional submission made by it post hearing in the subject matter.