The Sirpur Paper Mills Limited has informed that IDBI Bank Limited, acting on behalf of a consortium of lenders, has brought to the notice of the general public about a possession notice of land, buildings and structures of the company.

However, in a statement to the BSE, the paper company has informed that the banks have not issued any notice to the company before taking physical possession of the properties.

The company further stated that the books of account of the company required are to be maintained by the company as per the Companies Act and that all the records are at the factory.

The audit of the financial accounts for the financial years 2014-15 and 2015-16, which was under progress by the new auditors could not be completed due to arbitrary possession taken by the banks and locking the premises where the books of account are kept, the company informed.

Extension granted

It further sought to inform that the company was granted extension of time by the registrar of companies Hyderabad for holding the Annual General Meeting of the company by three months up to December 31, 2016.

“By virtue of the arbitrary act of the banks in taking possession of the financial and other records of the company, the company is not in a position to comply with the requirements of the Companies Act and other laws to make requisite compliances to the Registrar of Companies, SEBI, stock exchanges and government departments,” it informed BSE.

The assets have been taken physical possession of by IDBI Bank under the Sarfaesi Act while the company related disputes are pending in the Debts Recovery Tribunal, the company said.

The company has posted losses and its net worth has been eroded.

Related Topics