Govt. of Orissa
Department of Public Enterprises
Invitation of Expression of Interest for appointment of Merchant Banker
As a part of its ongoing PSU reforms programme, the Govt. of Orissa in the Dept. of Public Enterprises, intends to restructure the management of 4 (four) of its business undertakings for their long term revival and operation through sale of assets, transfer of shares and leave & license arrangement. For this purpose, Govt. of Orissa invites Expression of Interest from reputed and established Merchant Bankers and Consulting Firms with experience in sale of assets, disinvestment of share holdings in favour of strategic investors who will take responsibility of marketing, preparing advertisements and Information Memorandum for due diligence for inviting interested parties as per laid down procedure of the Govt. for disinvestment of PSUs. and advise, manage, assist in selecting a Purchaser /strategic investor or a Licensee and also to provide necessary consultancy to execute the same.
All the above undertakings are inoperative and the transactions should be taken up in accordance with and subject to clearance from the Debt Recovery Tribunals and H’nble High Court, Orissa.
Detail's about the four Units can be accessed from our website: www.idcorissa.com and www.orissagov.nic.in/pe/pe.htm.
''Interested parties may bid for one or more of the units.''
EOIs should be submitted in separate sealed envelopes marked as ''Technical Proposal'' and ''Financial Proposal'' for restructuring to The Industrial Development Corporation of Orissa Ltd., IDCOL HOUSE, Unit-II, Bhubaneswar-751009 by 17.00 hrs of 12th January, 2004.
It may be noted that the financial proposals will be opened for the parties who are short listed after scrutiny of the Technical proposals submitted by them.
Govt. of Orissa
Department of Public Enterprises
Invitation of Expression of Interest for appointment of Merchant Banker
As a part of its ongoing PSU reforms programme, the Govt. of Orissa in the Dept. of Public Enterprises, intends to restructure the management of 4 (four) of its business undertakings for their long term revival and operation through sale of assets, transfer of shares and leave & license arrangement. For this purpose, Govt. of Orissa invites Expression of Interest from reputed and established Merchant Bankers and Consulting Firms with experience in sale of assets, disinvestment of share holdings in favour of strategic investors who will take responsibility of marketing, preparing advertisements and Information Memorandum for due diligence for inviting interested parties as per laid down procedure of the Govt. for disinvestment of PSUs and advise, manage, assist in selecting a Purchaser /strategic investor or a Licensee and also to provide necessary consultancy to execute the same.
All the above undertakings are inoperative and the transactions should be taken up in accordance with and subject to clearance from the Debt Recovery Tribunals and H’nble High Court, Orissa.
The assistance sought from the Merchant Banker includes, inter alia, but not necessarily limited, the following:
· Valuation of the Company;
· Structuring the transaction
· Preparation of Information Memorandum & other bid documents;
· Drafting legal documents like Share Purchase agreements & Leave & Licence Agreement.
· Marketing the transaction
· Drawing up the evaluation criteria;
· Assist in negotiations;
The above mentioned list is not exhaustive and it is expected that the Merchant Banker must advise and undertake any other activity necessary for concluding the disinvestment process. GoO through IDCOL intends to hire such Merchant Banking Firms that have successfully managed disinvestment activities on behalf of Union Government and other State Governments. The fees for the assignment will be strictly on 'success fee' basis with provision for a 'drop dead' fee in the event the transaction is called off at any stage and the fees will be borne by IDCOL.
the Advisors are requested to submit separately the Technical Proposals and Financial Proposals in sealed envelopes super scribed "Technical Proposal' for restructuring &'' Financial Proposal''so as to reach to the address below by 17.00 hrs. on 12th January, 2004.
Chair man & Managing Director
The Industrial Development Corporation of Orissa Ltd
IDCOL HOUSE
Unit-II, Bhubaneswar-751009
For further information, the Merchant Bankers/Advisers are requested to contact the Company Secretary of IDCOL in the following address;
Mr. Arabinda Acharya
Company Secretary
IDCOL, IDCOL HOUSE, Unit-II, Bhubaneswar-751009
TelL(0674) 2530626
FaxL(0674) 2530518
I. SN CORPORATION LTD.
1. Product : High Tensile Fastner.
2. Capacity : 3,000 MT PA.
4. Present Status : Operation closed as per ID Act since 23.11.98.
5. Asset and Liabilities position:
The Asset and Liabilities position of the Company as per the Books of Accounts of the Company as on 31.03.2003 (Audited).
Rs. in lakhs.
ASSETS:
Grossed Fixed Assets --------------------- 962.56
Less: Depreciation------------------------ 903.90
Net Fixed Assets------------------------- 58.66
Capital work in progress-------- -------- 1.10
Total Fixed Assets------------------------ 59.76
Current Assets----------------------- 239.53
Total Assets-------------------- --------- 299.29
Accumulated Loss---------------------- 2810.92
LIABILITIES:
Share Capital-----------------------------295.33
Reserve & Surplus------------------------16.52
Loan from Banks------------------------120.00
Other Liabilities------------------------2602.98
Electricity Duty loan----------------------11.23
Sales Tax Loan------------------------------7.19
Employee dues----------------------- ------25.74
Sales tax---------------------------------------1.08
Electricity dues------------------------------23.83
Others Liabilities------------------------------6.32
At present, the dues of Bank is Rs. 108.95
________________
II. ORICHEM LTD
1. Location : South Balanda, Talcher.
2. Product : Sodium Dichromate, Basic Chromium Sulphate and Basic Chromium Sulphate.
3. Capacity : Sodium Dichromate (3300 MT PA), Basic Chromium Sulphate (1500 MT PA) and Basic Chromium Sulphate (1500 MT PA)
4. Present Status : i) Operation closed as per ID Act since 25.10.2000.
ii) The Company is under DRT and High Court for winding up.
iii) Essential staff numbering 5 only are in temporary employment.
5. Asset and Liabilities position:
The Asset and Liabilities position of the Company as per the Books of Accounts of the Company as on 31.03.2003 (Audited).
Rs. in lakhs.
ASSETS:
Grossed Fixed Assets-------- 635.04
Less: Depreciation------------ 501.85
Net Fixed Assets------------- 133.18
C.W.P.------------------------ 8.92
Current Assets---------------- 355.93
TOTAL ASSETS------------ 498. 03
Accumulated Loss---------- 1697.83
LIABILITIES:
Share Capital -------------- 276.65
Reserves & Surplus---------- 104.82
Loan from FIs----------------- 94.02 (IDBI- 34.84 –settled & paid for
Rs.24.25 lakhs
ICICI- 23.13 –settled & paid for
Rs.16.19 lakhs
IFCI- 19.65
LIC- 16.40)
Loan from Banks------------- 379.40
Interest Accrued but not paid-- 239.01
Employee dues--------------- 90.00
Sales tax Loan---------------- 229.50
Electricity duty loan -------- 13.36
Loan from IDCOL--------- 548.74
Others-------------------------- 0.51
Current Liabilities---------- 219.85
6. Land Details : (IN ACRES)
Leasehold-----50.21 Acres: (For 38.21 acres lease commencing from September, 1996
For 12.00 acres lease commencing from August, 1977)
Freehold---------------------- -
TOTAL LAND 50.21 Acres
Total 824.58
------------
______________________
III. ABS SPINNING ORISSA LTD.
1. Location : Aska, Baripada & Sonepur.
2. Product : Cotton and Synthetic Yarn (Aska Spinning Mill)
3. Capacity : ASM - 25,228 Spindles
BSM - 25,080 Spindles
SSM - 25,000 Spindles
4. Present Status : i) Operation closed since 2.3.03 - ASM
17.9.01- BSM
1.8.01 - SSM
ii) The Company is under DRT and High Court.
iii) Employees numbering 218 only are in employment. During the last two years 3353 employees have taken V.R.
5. Asset and Liabilities position:
The Asset and Liabilities position of the Company as per the Books of Accounts of the Company as on 31.03.2003 (Provisional).
Rs. in lakhs.
ASSETS:
CO ASM BSM SSM Total
Grossed Fixed Assets-------- 3.95 871.25 743.91 708.16 2327.27
Less: Depreciation------------ 3.14 811.77 651.00 640.30 2106.21
Net Fixed Assets------------- 0.81 59.48 92.90 67.87 221.06
Capital Work in Progress--- --- 5.04 0.83 -- 5.87
Current Assets---------------- 629.06
TOTAL ASSETS------------ 855.99
Accumulated Loss--------- 31.91 4372.57 3042.41 4494.76 11941.65
LIABILITIES:
Loan from FIs
ASM BSM SSM Total
IDBI 210.94 76.22 70.06 357.22
IPICOL - 12.00 - 12.00
LIC - - 4.71 4.71
________________________________________
Total: - 210.94 88.22 74.77 373.93
Accrued Interest to FIs 1775.23
Loan from Banks
SBI 92.89 106.46 238.46 437.31
Andhra Bank 139.59 - - 139.59
Bank of India - 119.06 - 110.06
___________________________________________
Total: 231.98 225.52 238.46 695.96
Accrued Interest to Banks 3304.08
Unsecured Loan from IDCOL 1126.91
Employee dues--------------- 1735.79
Sales tax----------------------- ----- ------
Electricity--------------------- 1589.10
Others-------------------------- 1256.56
Share Capital 300.00
Reserve Surplus 640.08
6. Land Details: (IN ACRES)
ASM BSM SSM TOTAL
Leasehold-------------------- 66.25 149.16 111.15 326.56
Year of Lease--------------- 1985 1986 1987
Freehold---------------------- - -- --- --- ---
---------------------------------------------------
TOTAL LAND 66.25 149.16 111 .15 326.56
-------------------------------------------------
_________________
IV. IDCOL PIPING & ENGINEERING WORKS LTD.
1. Location : Mancheswar Industrial Estate, Bhubaneswar.
2. Product : Stainless Steel Tube, Bending of Pipes and Fabrication for high
Pressure Applications.
3. Capacity : SST - 1600 MT pa.
Fabrication Division- 2400 MT pa.
4. Present Status : i) Operation closed since August, 2000 due to want of orders and working capital.
ii) The Company is under DRT and High Court.
iii) Only 22 employees are now in employment.
5. Asset and Liabilities position:
The Asset and Liabilities position of the Company as per the Books of Accounts of the Company as on 31.03.2003 (Audited).
Rs. in lakhs.
ASSETS:
Grossed Fixed Assets------- 3573.83
Less: Depreciation---------- 1677.69
Net Fixed Assets------------ 1896.14
Current Assets---------------- 408.78
Total Assets-------------------2304.92
Accumulated Loss-------12741.70
---------------
Total 15046.62
---------------
LIABILITIES:
Share Capital------------------ 193.16
Loan from FIs----------------- 1418.12
Loan from Banks------------- 1642.43 (This has been finally settled
and repaid at Rs. 276.95 lakhs)
Other loan--------------------- 928.55
Accrued interest but not paid 9729.66
Current Liabilities 1134.70
-----------------
Total 15046.62
----------------
6. Land Details: (In Acres)
Leasehold-------------------- 25.29 acres (Lease executed on 24.7.81 with
IDCO)
Freehold---------------------- -
-------------------
TOTAL LAND 25.29
-------------------
______________________