I’ve been told by blog regulars that Galada Power (FV Rs 10),BSE Code : 504697 was being recommended a few days ago by some at Rs 6/7 as a multibagger
Just know this…..It has been declared sick by BIFR but as the Board is of the View that a viable rehabiltation package can be arrived at,the Accounts have been prepared on a’Going Concern ‘Basis
Ten Days ago Galada Power was Rs 6/7…then several vested Bulk Deals have been taking place and Price moved to Rs 13/14
Those advising to buy are justifying on the basis of Real Estate Value of over Rs 40 crs of Factory Land and Office Building and One Time Settlement of Dues with Financial Institutions…..Company make no specific mention of this when declaring it’s March 31,2010 results end June 2010
Be Careful….As at March 31,2010,Galada Power has accumulated Loss of Rs 153 crs,Non Provision of Interest of Rs 120 crs and Non Provision of additional Interest and liquidated damages payable to Financial Institutions of Rs 214 crs (it has sought waiver on this in it’s Rehabilitation Proposal) above the actual Outstandings due as on it’s Balance Sheet
Reproduced below is the Company Declared Results as at March 31,2010 and as uploaded on the BSE site
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Scrip Code : 504697 Company : GALADA POWER & TELECOMMUNICATION LTD. |
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Scrip code: 504697 Company Name: GALADA POWER & TELECOMMUNICATION LTD. |
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Date Begin: 01 Apr 09 Date End: 31 Mar 10 |
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1. The Company being declared sick is under the preview of BIFR. As the Board is of the view that there is a possibility for formulating an acceptable and viable rehabilitation package, the accounts are prepared on a “going concern basis.” 2. The accumulated losses as on March 31, 2010 were Rs. 15266 lakhs. 3. Interest on unpaid dividend is not provided to the extent of Rs 193.80 lakhs upto March 31, 2010. 4. Interest on working capital demand loans from Banks is not provided to the extent of Rs. 12022.83 lakhs upto March 31, 2010. 5. Additional interest/liquidated damages payable to Financial Institutions are not provided in the books of account as the Company has sought waiver of the same in its Rehabilitation Proposal. The amount of such interest and damages is Rs 21418.10 lakhs upto March 31, 2010. 6. No segmental reporting is required as the Company is exclusively engaged in the manufacture of Conductors and related products. 7. Figures of the previous year have been re-arranged wherever necessary without any financial impact on the results. 8. The above results were reviewed by the Audit Committee and approved by the Board at its meeting held on June 26, 2010. Devendra Galada |
Know the Risks before you go Gaga or Glad on Galada……the Losses and Loans and Non Provisions are overwhelming as of now….