The Hindu Business Line : BIFR orders winding up of Autokast

THE Board for Industrial and Financial Reconstruction (BIFR) has ordered the winding up of State-owned Autokast Ltd at Chertalai in Alappuzha district after expiry of the two-month time given to the promoters of the company to submit a detailed revival scheme.

BIFR, in its order, said the board in its last hearing on June 29 had "made it clear to all concerned that at the end of two months from the date of receipt of these proceedings, if nothing concrete emerged, the board would confirm the W.U. notice, on file, without holding a hearing."

Despite the lapse of two months, nothing tangible has been reported by the company and its promoters/directors in the matter, it said. Given this situation, the "Bench comes to the conclusion that despite having allowed enough time and opportunity to all concerned, it had not been possible to formulate any acceptable revival scheme for the company enabling it to make its net worth exceed the accumulated losses."

Having forwarded the Bench's opinion to the Kerala High Court, it has directed that the company should not dispose of or alienate any of its fixed or current assets till an official liquidator is appointed by the High Court and he charge for further disposal according to the law.

The decision of the board has been communicated to all concerned vide its letter dated October 28.

Following the decision of BIFR, the workers under the banner `Save Autokast Forum' (SAF), have undertaken a relay hunger strike at the company's gate, Mr Jayachandran, General Secretary of the forum, told Business Line on Friday. He said SAF and the management would file an appeal before AAIFR (Appellate Authority of Industrial and Financial Reconstruction) against the order. Only the State Government can avert the winding up of the company, he said.

A "viable project proposal" prepared by an expert committee constituted by SPATO, an organisation of the officers of public sector units and autonomous bodies in the State, was submitted to the State Government in November last.

"The employees and officers of the company have pledged their whole-hearted commitment and active support for the implementation of the proposal," said Mr Jayachandran.

Mr Jayachandran alleged that the Government did not consider this revival package and stuck to the recommendation of its Enterprises Reform Committee. The committee, upon evaluation of the physical and financial performance of the company, had recommended privatisation of the unit, with management control to strategic investors, he said.

The State finance department is understood have turned down the demand for Rs 3.5-crore soft loan as part of the SPATO revival package, signalling that it was not interested in the proposal, an official source said.

The company, with a paid-up capital of Rs 17.97 crore, had an accumulated loss of over Rs 100 crore and a negative net worth of Rs 88.70 crore as on March 31, 2002. The closure of the company will render 342 employees jobless.

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