The annual general meeting of Hyderabad-based firm ICSA (India) Ltd has ratified the company’s decision to refer it to the Board for Industrial and Financial Reconstruction (BIFR).

The BIFR received the company’s plea and has put it under the status “pending determination of sickness”.

restructuring package Company’s Chairman and Managing Director G. Bala Reddy has said the company had no other go but to move the board after the Rs 480-crore debt restructuring package an SBI-led consortium of banks failed to fructify.

As it found difficult to move ahead after working capital requirements and burden of contracts mounted, the company turned to BIFR to bail it out. “We tried for a second debt restructuring package but it didn’t move ahead either,” Bala Reddy said.

The company, which had to cancel contracts worth Rs 1,000 crore, sacked about 1,300 employees over a period of two years. It currently runs with about 140 employees.

The company provides IT-based solutions to the power sector, including smart grid solutions, intelligent automatic meter reading solution, power quality management system and remote street light control system.

He had earlier said the company had referred it to the BIFR after its net worth was eroded and turned negative for the 15-month period ended June 30, 2013. The company awaited the Board decision on the plea that it registered in October.

While public hold 91 per cent of the shares, the promoters pledged 96 per cent of their holding or 8.79 per cent of the total shareholding of the company.

Rs 43-crore loss As on September 30, 2013, the company made a loss of Rs 43 crore as against a loss of Rs 29.50 crore in the same quarter last year. During the period the turnover fell to Rs 7.76 crore from Rs 121 crore.

The earning per share turned negative at minus Rs 8.95.

> kurmanath.kanchi@thehindu.co.in

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