The Board of Directors of th company has approved a proposal to issue GDRs to promoters, promoter group, group companies and any other entity, which is a subsidiary, associate of its parent, group companies or any other entity eligible to invest in GDR for an amount up to Rs 400 crore.
The firm reported a net loss of Rs 95.72 crore during the quarter ended September 30, 2015 against a net loss of Rs 58.46 crore, a year ago. Its significant accumulated losses, as of September 30, 2015, have eroded the net worth. In February 2013, the company had intimated to the Board for Industrial and Financial Reconstruction (BIFR) about erosion of more than 50% of the company's net worth.
The company has earlier said that it has initiated steps to improve its operational performance/ liquidity, removal bottlenecks, relating to its products, improved the net worth including raising for capital.
"The company believes that it would be able to realise its assets and settle its liabilities in the normal course at their carrying values and that no adjustments would be required in respect of the carrying value of assets/ liabilities as at September 30 ,2015," said the company earlier.
As a part of restructuring initiatives, to improve overall profitability and performance, the company had announced Voluntary Retirement Scheme at its manufacturing units in Ennore and Ductron Casting Unit (DCU) at Hyderabad.
The company, during the quarter ended September 2015, said exceptional items of Rs 65.51 crore and Rs 136.50 crore for the quarter and twelve months ended September 30, 2015, respectively, mainly comprises expenditure incurred towards voluntary retirement arrangements.