Intimation regarding Work Order (Sub Contract). A copy of LOA(Letter of Acceptance) of Award is enclosed herewith. The same is for your kind perusal and record.
Awaiting price reaction for this filing.
ARSS Infrastructure Projects Ltd has received a sub-contract work order worth Rs. 37.79 crores from SIPS-SCPL (JV). The work involves design, supply, erection, testing and commissioning of 25KV overhead electrification (OHE) on a new railway line between Dasapalla and Purunakatak under East Coast Railway. The sub-contract is on a back-to-back basis, includes a 5% commission payable to the main contractor, and has a 24-month completion period. Notably, the order has been received while the company is still under CIRP (Corporate Insolvency Resolution Process) and in the implementation phase of its Resolution Plan. Payment terms are tied to receipts from the principal employer (East Coast Railway) within 10 days of monthly bills.
This is an encouraging sign of fresh business inflows for a company undergoing insolvency resolution, suggesting that operations and order booking continue during the CIRP implementation phase. However, since it is a sub-contract on back-to-back basis with a 5% commission to the main contractor, realisations and margins may be thin. Investors should watch for more such orders and progress of the Resolution Plan implementation.