Golkonda Aluminium Extrusions

Golkonda Aluminium Extrusions Limited was originally incorporated on 22nd August, 1988 under the name of 'Progressive Aluminium Limited' to produce extrusions and went into production in 1991. In December, 1993, the management of the Company was taken over by Pennar Group of Hyderabad and with effect from March, 1994, the name of the Company was changed from Progressive Aluminium Limited to Pennar Profiles Limited and again to Golkonda Aluminium Extrusions Limited in 2015. During the year 1995-96, the company has completed modernisation & expansion. 900 Tonne extrusion press was installed & the capacity of connected handling equipment was increased from 350 TPM to 500 TPM. It also made a Rights issue of 4,07,000 non-convertible debentures of Rs 100 each for cash at par with detachable equity warrants in the ratio of 1:1 to be exchanged with equity shares of Rs 10 each at a premium of Rs 5 per share. During 1996-97, the company has been accredited with ISO 9002 certification by KPMG Peat Marwick LLP, USA. Due to continued financial difficulties and incurred losses in the year 1998-99, the Company was declared as a Sick Company by BIFR and appointed Industrial Finance Corporation of India Limited (IFCI) as the Operating Agency for rehabilitation. The company's proposal to obtain financial assistance through External Commercial Borrowing (ECB), due to its high export performance in the international market, did not materialise due to non-availability of lender's guarantee. Subsequently, O & S Metallhandel, GmbH, (OSMG), a German company active in trade of aluminium extrusions, showed interest in the revival of the company and has offered to undertake exports of aluminium extrusions manufactured by the company upto 400 tonnes per month. The rehabilitation scheme prepared by IFCI, approved by the Board and submitted to BIFR recommends induction of OSMG, which is part of the group whose flagship company is Danmetal A/S (Denmark), as a co-promoter and waiver of entire outstanding interest dues payable to Financial institutions and banks through reliefs and concessions. Pending BIFR sanction, other measures are one time settlement of dues towards FIs and banks, amounting to Rs.164 million, payable in three annual instalments including upfront payment, reduction in equity share capital, part conversion of loan into equity. It has also recommended investment by OSMG and their associates to the tune of Rs.59.8 (US$ 1.30) million of which Rs.32.2 million will be towards equity and the balance as unsecured loan which has been agreed to by OSMG. During the year 2005, Alumeco Group, Denmark along with IFU Denmark (an Industrial Fund for Developing Countries) took over the Company and its Management. The Company was in the business of manufacturing of aluminum extrusion in India. In July 2013, management of the Company took decision to close down the manufacturing facility due to various adverse business conditions. Further, during financial year 2016-17, the Company sold its manufacturing facility on lump sum consideration. In May 2016, the Company got into an Asset Purchase Agreement with Sagar Asia Private Limited for the sale of the whole of assets of the Company. In July 2017, Mrs. Utpal Agrawal & Mr. H. P. Agrawal got into Share Purchase Agreement with Alumeco Group, Denmark (the existing promoters of the Company) for purchasing their entire shareholding in the Company and taking control over the Company. After taking over the Company, the new management started new business, including trading in ferrous and non-ferrous metals. Thereafter the company carried out the business of importing, exporting of all types of ferrous metals, non-ferrous metals, and allied machinery included sale/purchase of equity Shares, stocks, debentures, bonds, and to invest or deposit funds in such articles and to acquire, purchase sell the same, as well as materials, articles, or things, obligations, and securities issued or guaranteed by any company or entity.