The Hindu Business Line : Torrent Cables out of BIFR net

Satisfied that the sanctioned scheme for the revival of the company has been substantially implemented, the Board discharged TCL from the purview of the Sick Industrial Companies (Special Provisions) Act (SICA).

While discharging the company, the Board said, "TCL is hereby discharged from the purview of SICA, subject to the condition that the unfulfilled obligations under the sanctioned scheme, if any, shall be implemented by all concerned if the same are necessary for its revival."

The BIFR also discharged the appointed special director on the company's board, Mr S. Gopalakrishnan. The bench recalled that a rehabilitation scheme for the company was sanctioned in March 2002. TCL in February 2004 submitted that there were no unsecured loans or deposits outstanding as on December 31, 2003. It also submitted that all the workers' dues have been paid.

As per the sanctioned scheme, the net worth was projected at Rs 38 lakh as on March 31, 2002 and Rs 3.61 crore as on March 31, 2003. The actual net worth is positive at Rs 7.43 crore as on March 31, 2003 and Rs 19.60 crore December 31, 2003 and the accumulated losses have also been wiped off, the bench noted.

Further, the auditors of the company while certifying the same submitted the net worth of the company as positive. Bank of Baroda, the monitoring agency (MA) vide a letter dated February 19, 2004, has forwarded the minutes of the management committee meeting held on January 1, 2004. In the minutes of the meeting, it was observed that the company has achieved good results, the bench noted.

The sales projections as per the sanctioned scheme was Rs 70 crore, but the company clocked better gross sales for nine months, Rs 90 crore. The profit projected was Rs 3.5 crore and it has achieved Rs 12.09 crore.

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