A-One Parts is promoted by Anirudh Bhuwalka, The transaction happened at a time when two of Bhuwalka’s other companies, AMW Motors and AMW Auto Component, were struggling to repay debts taken from a consortium of banks.
Even as the controversy over Videocon founder Venugopal Dhoot’s alleged sweetheart deal with Deepak Kochhar’s NuPower Renewables is yet to die down, another interesting transaction has come to light.
Documents available with Moneycontrol show that NuPower Technologies, a 100 percent subsidiary of NuPower Renewables, was bought out by little-known A-One Parts and Services for Rs 116 crore in 2016.
A-One Parts is promoted by Anirudh Bhuwalka. The transaction had taken place even as two of Bhuwalka’s other companies, AMW Motors and AMW Auto Component, were struggling to repay debts taken from a consortium of banks.
An e-mail questionnaire sent to Kochhar on April 12 was unanswered at the time of filing this report. Kochhar is battling allegations that Dhoot’s decision to sell his stake in NuPower Renewables to the former for a low price was a quid pro quo for loans extended to Videocon Group by ICICI Bank. Deepak is the husband of MD & CEO of ICICI Bank Chanda Kochhar.
In response to a query from Moneycontrol, A-One Parts said: “There was an agreement for acquiring shares and debentures in Nupower Technologies for a consideration of 116 crore. Based on this agreement a token advance of Rs 1 crore was paid to NuPower. No further payment has been made since the transaction has not been consummated.”
However, the shareholding details of NuPower Technologies for the year ended March 31, 2017 show A-One Parts & Services owning 100 percent of NuPower Technologies.
When this was again pointed out to A-One Parts, it responded saying: “We have no knowledge or control over what NuPower has stated in its financial statements. U (sic) can address this with NuPower.”
Interestingly, Bhuwalka’s firm made the investment in NuPower Technologies when his company AMW Motors was struggling to repay Rs 1,800 crore of loans to a consortium of banks led by IDBI Bank. The company was then put up for sale by the consortium of banks.
A similar problem was faced at group company AMW Auto Component, which owed Rs 724 crore to banks, and was put up for sale in 2017 by the eight lenders who had jointly taken control of the firm.
Nupower Technologies reported losses of Rs 5 crore and Rs 8 crore respectively for financial years 2015-16 and 2016-17.
In FY16, the company had reported a turnover of Rs 43 crore, which plunged to Rs 48 lakh the following year. NuPower Technologies mentioned in its annual report that the losses were due to the closure of the plant due to lack of orders.
Anirudh Bhuwalka owns 84.90 percent in A-One Parts. Close to 15 percent is held by one Mukesh Agarwal. Six other directors jointly with Asia Motorworks Holdings (AMWHL) own 0.02 percent each.
AMWHL is the holding company for AMW Motors, owning 99.99 percent in the company.
A Registrar of Companies (RoC) filing for 2009 shows Essar Investment and Mauritius-based Essar Motorworks Holdings having subscribed Rs 442 crore and Rs 478 crore worth of debentures in AMWHL. The current status of these investments could not be ascertained. In a 2015 filing with RoC, AMWHL has shown long term borrowing of Rs 811.45 crore. But the source of these loans was not specified.