Andrew Yule & Co Ltd (AYCL) is yet to be out of the ambit of the BIFR. The public sector company reported a net profit of Rs 10.01 crore for FY12 (Rs 41.32 crore in FY11), not enough to wipe out the accumulated loss.
The statutory auditors Gupta & Co said that the 2011-12 financial results “have been prepared based on the principle applicable to a going concern after giving due consideration to the rehabilitation package”.
The rehabilitation scheme with a cut-off date – March 31, 2006, – approved by the BIFR at its final hearing on October 30, 2007, is still “under implementation”.
The auditors said that Rs 2.61 crore, received from the Assam Government, for surrender of lease right of land should have been shown as an exceptional item instead of other income.
During 2011-12, the company could bring down the finance cost to Rs 15.59 crore from Rs 16.73 crore in 2010-11.
Disinvestments, loan refund
In the past couple of years, AYCL sold 26 per cent stake in the joint venture Phoenix Yule Ltd for Rs 59.12 crore. In addition, it received from Phoenix Yule Rs.1.30 crore for letting it use “Yule” trademark for a period of two years and Rs 2.40 crore as a non-compete fee.
AYCL also offloaded its 7.12 per cent stake in DPSCL, a power utility, for Rs 21.38 crore. The disinvestments proceeds were used to repay Government of India loan of Rs 87.06 crore.