Coventry Coil-O-Matic Haryana Ltd Company Summary

Coventry Coil-O-Matic Haryana Ltd Summary

Coventry Coil-o-Matic (Haryana) Limited (CCHL) was incorporated in the year September 23, 1988. The Company is one of Indias leading integrated spring Solutions Company offering a comprehensive range of products and solutions catering to multiple industries. The Company is a leading manufacturer of Auto Suspension Springs as well as Power Brake Actuator Springs for Commercial Vehicles and is the leading market players in springs for other Industrial Applications. Business from the Auto Suspension Springs and Power Brake Actuator Springs accounted for more than 90% of the total turnover.During the year 2013, the Company started developing springs with high strength materials for the 2-wheeler segment and modifying the springs to make it lighter in weight thereby reducing the overall price for potential customers. The company also developed springs for Mono-Shock Suspension, thus widening its product range to two wheeler segments as well. Other than Suspension Springs, the company made springs for PCB Kits and Medical applications.During FY16, the Company availed term loans of Rs.925.67 lakhs between 1990 and 1992 from consortium of ICICI; IDBI and IFCI of with ICICI was the lead institution. Due to financial crisis in the country during implementation of project, there was cost over runs leading to tight cash flows and incurring huge losses. The Company went to BIFR and during that time had repaid the institutions, a substantial amount. However the loans were assigned to various asset reconstructions companies who went to Court for recovery of exorbitant amounts of the balance of debts. On 18th January 2016, the Debt Recovery Tribunal-1, Delhi (DRT-I) pronounced an Order for recovery of Rs. 8449.40 lakhs together with simple interest @ 13.5% p.a. The Company has filed an Appeal in the Appellate Court against this Order, as the Company is of the view that the Said Order is not in accordance with the law and after applying the Reserve Bank of India One-Time Settlement (RBI OTS) Guidelines and after adjusting amounts already paid, physical possession of part property given and amount deposited with the DRT. The Company is of the opinion that nothing will be due and payable by the Company to the lenders/ assignees. On the contrary amounts may become recoverable which claims the Company has filed.