You are well aware of the challenges faced by your Company in the past. Theovercapacity situation in the Roll and Forging industry delayed technology absorption fornext generation rolls unavailability of future financing etc are a few factors that haveled to severe financial constraints leading to continued cash losses and erosion of networth of the Company.
As a result your Company filed application in July 2017 before National Company LawTribunal (NCLT) Kolkata u/s 10 of the Insolvency and Bankruptcy Code 2016 (IBC) seekingCorporate Insolvency Resolution Process (CIRP).
Honorable National Company Law Tribunal (NCLT) Kolkata vide order dated April 5 2019has admitted the initiation of Corporate Insolvency Resolution Process (CIRP) underSection 9 of the Insolvency and Bankruptcy Code 2016 (IBC) in respect of the Company.
By the said order NCLT Kolkata has declared Moratorium and public announcement inaccordance with Section 13 & 15 of the Insolvency & Bankruptcy Code 2016 and hasappointed Mrs.Vinita Agrawal having Registration No.IBBI/IPA-001/IP-P00914/2017-2018/11520 as an Interim Resolution Professional (IRP) andcontinued as Resolution Professional as appointed by the Committee of Creditors in itsmeeting held on May 3 2019 under provisions of the code.
Despite relentless efforts and continued support from all stake holders especiallyfrom the Promoter(s) the suboptimal performance has resulted in financial loss for theyear. As on 31/3/2019 the accumulated loss is at Rs 53395.63 lakhs and Company's currentliabilities exceed the current assets. The operations of the Company continue to remainclosed since September 2016.
Despite the above through continuous engagement with the Promoter your company hasbeen able to raise funds mainly through preferential allotment of Non CumulativeRedeemable Preference Shares to Tata Steel Limited the Promoter to meet its financialobligation towards various stake holders to the extent possible.
I am grateful to our Promoter(s) for extending their unstinted financial and othersupport. I also take this opportunity to express my sincere gratitude and heartfelt thanksof the entire "Tayo Family" for their continued support to the Company and theManagement.