Galada Power and Telecommunication Limited is an Indian manufacturer in the **Power Transmission and Distribution (T&D)** sector. Following a period of severe financial distress, the company has successfully emerged from the **Corporate Insolvency Resolution Process (CIRP)** under the **Insolvency and Bankruptcy Code (IBC)**. With a newly reconstituted Board and a debt-free balance sheet, the company is currently executing a comprehensive **revival and business restructuring plan** led by its new promoters, **Amrutha Constructions Private Limited**. --- ### **Strategic Pivot: High-Efficiency Conductor Manufacturing** The company is transitioning from legacy products to high-technology solutions to align with the modernization of India’s power grid. * **Product Evolution:** The company is moving away from standard **ACSR/AAA Conductors** toward new-generation, high-capacity conductors: * **AL 59 High Ampacity Conductors:** Targeted for new, high-load transmission lines. * **HTLS (High Temperature Low Sag) Conductors:** Designed for replacing and upgrading existing aging infrastructure to increase power transfer capacity. * **Operational Synergy:** The new promoter, **Amrutha Constructions**, is a **Class-1 civil contractor** specializing in **EPC contracts** for 33KV and 11KV lines. This provides Galada with a captive market and established industry relationships. * **Recent Order Book:** Demonstrating a return to activity, the company secured two major orders totaling **₹50.25 Crores** for the raising and shifting of **400kVA Transmission Lines** in Bihar. --- ### **Infrastructure Realignment & Asset Rationalization** Management has initiated a geographic and operational shift to improve logistical viability and financial efficiency. | Facility Type | Location | Status | | :--- | :--- | :--- | | **Registered Office** | Uppal, Hyderabad, Telangana | Operational | | **Administrative Office** | Somajiguda, Hyderabad, Telangana | Operational | | **Manufacturing Plant** | Village Khadoli, Silvassa (UT of D&NH) | **Under Revamp / Partial Divestment** | * **Consolidation in Hyderabad:** Manufacturing focus is being shifted to **Uppal, Hyderabad**, to leverage superior logistics and proximity to the promoter’s core operations. * **Silvassa Asset Disposal:** The Board determined that legacy machinery at the Silvassa plant was of "not much value" for modern conductor types. Consequently: * Land and buildings at Silvassa were **sold** to part-finance the revamping of other facilities. * Redundant plant and equipment were **written off or disposed of** in **Q2 FY26**. * Remaining legacy equipment is classified as **"held for sale"** at book value. --- ### **Capital Restructuring & Post-Resolution Ownership** Following the **NCLT Hyderabad Bench** order (initially **May 25, 2023**, and modified **September 10, 2024**), the company executed a massive capital overhaul to exit the IBC process and meet regulatory requirements. * **Equity Reduction:** Existing equity was reduced from **7,489,880** shares to **443,158** shares (a **100:1** reduction for public holders; erstwhile promoter holdings were extinguished). * **Fresh Issuance:** **8,420,000** fresh equity shares were issued to the **Successful Resolution Applicants (SRA)** at par. * **Authorized Capital Expansion:** In **February 2026**, the Board approved increasing the Authorized Share Capital to **₹11.75 Crores** to facilitate future equity issues for **Minimum Public Shareholding (MPS)** compliance. **Post-Resolution Shareholding Pattern:** | Shareholding Category | Number of Shares | % of Total | | :--- | :--- | :--- | | **New Promoters (Amrutha Constructions & K. Ramalakshmi)** | **8,420,000** | **95.00%** | | **Public Shareholding** | **443,158** | **5.00%** | | **Total Paid-up Capital** | **8,863,158** | **100.00%** | * **Listing Status:** BSE listing was approved on **April 30, 2025**. Trading approval is currently **under process**. --- ### **Financial Recovery & Debt Settlement Profile** The company has transitioned to a **debt-free** status regarding external financial institutions, though it remains in a fragile "start-up" phase post-revival. * **The Settlement:** The **SRA** infused **₹33.43 Crores** to settle all stakeholders: * **Financial Creditors:** Admitted claims of **₹2,107.28 Crores** were settled for **₹29.32 Crores** (a significant haircut). * **Operational Creditors:** Settled at a **2.50%** payout (**₹0.12 Crores**). * **Current Debt Profile:** While the company is "Debt Free" from prior lenders, the balance sheet reflects **₹25.01 Crores** in **interest-free debt** from the Resolution Applicant, which is optionally convertible into equity within **3 years**. **Financial Snapshot (₹ in Lakhs):** | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Sales / Other Income** | - | **138** | **15** | | **Profit / (Loss) After Tax** | **(Loss)** | **1,391*** | **(213)** | | **Total Equity** | **(1,793.46)** | **(1,829.15)** | **(5,758.58)** | *\*Note: FY24 profit was driven by exceptional items related to the write-back of liabilities under the Resolution Plan, not operational revenue.* --- ### **Risk Factors & Contingencies** #### **1. Operational & Solvency Risks** * **Going Concern:** Auditors continue to highlight **Material Uncertainty Related to Going Concern** as the company transitions from zero active operations to a revamped manufacturing model. * **Negative Net Worth:** Despite the debt settlement, the company still carries a **negative net worth** and has not recognized **Deferred Tax Assets** due to uncertainty over future taxable profits. #### **2. Asset & Valuation Risks** * **Impairment Assessment:** Management has **not yet assessed** the plant and machinery at the Silvassa site for impairment. This leaves a potential valuation risk unquantified in the financial statements. #### **3. Legal & Legacy Liabilities** * **Labor Disputes:** A long-standing dispute involves **139 workmen** from a 2001 settlement who filed claims in **2017**. The case is currently in the hearing stage. * **Tax Contingencies:** Potential liabilities of **₹14.65 Lakhs** exist regarding non-submission of **C Forms** for the Silvassa unit (AY 2008-10). * **Preferential Payments:** The NCLT ordered former directors to repay **₹18.17 Lakhs** in preferential payments; however, this recovery is being pursued by the **Committee of Creditors (CoC)** and does not benefit the company’s current books. #### **4. Market & Liquidity Risks** * **MPS Compliance:** The company must increase its public shareholding from **5%** to **25%** over time to meet SEBI long-term requirements, which may lead to equity dilution. * **Credit Risk:** The company manages credit risk by restricting dealings to **high credit rating counterparties**, essential as it restarts its trade cycle.