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According to STUSA's dissent note, the accounts are not calculated and presented in accordance with the true project cost of Rs 748 crore as approved by the Andhra Pradesh Government on which basis SPGL is receiving tariff payments for the last five years.

HYDERABAD, March 14

THE Supreme Court has ordered that the Spectrum Power Generation Company Ltd (SPGL) can hold its annual general meeting (AGM) provided "that the accounts are without prejudice to the legal proceedings pending before the various courts."

Spectrum Technologies USA (STUSA) and its associates, having 25 per cent stake in the equity of the gas-based power plant in Kakinada, appealed to the Supreme Court seeking directions to SPGL management to indicate the dissent expressed by them and qualification expressed by the financial institutions in the annual reports for the three years for which accounts were sought to be passed. Disposing the appeal, the Supreme Court gave the above orders on Thursday.

SPGL had initially scheduled to hold the AGM on March 10 for passing of accounts for the years ending March 31, 2000, 2001 and 2002.

The company, however, could not hold the AGM as per schedule on account of an injunction given by the Chief Judge of the City Civil Courts, Hyderabad.

Subsequently, the company appealed to the Andhra Pradesh High Court and on the directions of the High Court rescheduled the AGM for March 20.

According to STUSA's dissent note, the accounts are not calculated and presented in accordance with the true project cost of Rs 748 crore as approved by the Andhra Pradesh Government on which basis SPGL is receiving tariff payments for the last five years. "The accounts are based on an assumed project cost of Rs 972 crore which has already been rejected by the AP Government."

Hence, STUSA maintains that the annual accounts, which show a profit of Rs 9.8 crore for 2000-01 and a profit of Rs 6.2 crore for 2001-02, are "consistently incorrect because there is an accumulated loss of Rs 130.37 crore as of year ending 2002."

STUSA also does not accept the accuracy of the equity allotment to Bambino Finance, its friends and payment of Rs 52 crore to the National Thermal Power Corporation by SPGL all of which are now subject matter of proceedings before various courts.

STUSA also filed a contempt petition in the Delhi High Court praying for initiation of contempt proceedings against the SPGL Vice-Chairman and Managing Director, Mr M. Kishen Rao, the Whole-Time Director, Mr M. Raghuveer, and the Director Mr M. Subramanyam.

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