Auditors of debt-laden ABG Shipyard have said that the company in the earlier years had recognised for subsidy under Ship Building Subsidy Scheme, of which around Rs 500 crore is still receivable as on December 31, 2015.
However, the receipt of aforesaid subsidy is dependent upon completion of vessels and compliance with other terms and conditions of the Ship Building Subsidy Scheme of the Government of India. Auditors said that in view of the uncertainty involved with respect to availability of working capital as required for completion of vessels, they are unable to comment on “the recoverability or otherwise of the Rs 499.60 crore subsidy amount”.
Meanwhile, senior company officials say that ABG is in advanced discussions with a potential financial investor for a stake sale of 51% at the entity level. The company expects to raise between Rs 600 and Rs 700 crore via the stake sale, an official said.
He also added that deal with Germany-based Privinvest Holding remains intact, and the German company will help it with knowledge and technology sharing, as and when the company bags orders in the defence space.