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Richa Mishra

New Delhi , Jan. 21

THE Board for Industrial and Financial Reconstruction (BIFR) on Tuesday directed the Director of Income Tax and Prasar Bharati to resolve outstanding issues with the Big B's entertainment company, AB Corp Ltd, within a stipulated timeframe.

According to informed sources, the BIFR Bench directed the company and the other two parties to settle the issue within eight weeks.

This move is expected to expedite the rehabilitation process of the company. In fact, earlier the board had directed Prasar Bharati to form a committee to sort out the outstanding issues, company sources told Business Line.

However, no committee was formed. Following the directive of BIFR, AB Corp officials are open to meet Prasar Bharti executives to sort out the issues, company sources said.

Pointing out that AB Corp, the erstwhile Amitabh Bachchan Corporation Ltd (ABCL), had already paid its principal amount of Rs 19 crore owed to the broadcaster. The matter that remained to be resolved was modalities for free advertisements featuring the Bollywood megastar and Chairman of the company, Mr Amitabh Bachchan.

In fact, the company has already repaid most of its creditors. In the case of the tax department, the rehabilitation package required certain reliefs and concessions to the company. But the company was yet to hear from the authorities, the sources said.

ABCL's net worth stood at around Rs 50 crore as on September 2003 based on provisional accounts.

The company, engaged in the production of audio cassettes, TV serials and films, as well marketing of audio cassettes, event management, celebrity management and host of other entertainment projects, was declared a sick industrial undertaking in 1999 following which BIFR had sanctioned Rs 38.07 crore rehabilitation package. The scheme envisaged that the installed capacity of its audio cassette division would be increased from five lakh pieces to 15 lakh pieces per annum by incurring capital expenditure of Rs 1 crore.

ABCL would also produce one mega size and one medium size movie each year at an estimated total cost of Rs 17 crore. Additional working capital for audio divisionat Rs 50 lakhhas been provided in the cost of the scheme.

Further, the promoters of the company proposed to induct Rs 15.52 crore in the form of unsecured loans as their contribution to part-finance the scheme.

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