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Our Bureau

Kolkata , Sept. 3

THE Board for Industrial and Financial Reconstruction has approved the capital restructuring of Jessop & Co Ltd. This will help the company to wipe out its accumulated losses of Rs 122.87 crore.

At its meeting on August 31, the BIFR approved the plea of Jessop management to reduce the company's paid-up equity capital from Rs 95.07 crore to Rs 9.5 crore by reducing the face value of the shares from Rs 10 to Re 1. The paid-up capital was abnormally high compared to the company's turnover of Rs 77 crore and net profit of Rs 4.82 crore.

"There is a severe mismatch between the size of business and the paid-up equity of the company. Moreover, the accumulated loss is coming in the way of enhancing the company's business portfolios," said Mr P.K. Ruia, Chairman of Jessop.

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