Companies

Reid & Taylor India shuts shop in Nanjangud

Our Bureau | Updated on May 20, 2020

Bengaluru, May 20

RTIL Limited (formerly known as Reid & Taylor India Limited) which was under NCLT liquidation since February 5,2020 has closed its factory located at Thandya Industrial Area in Nanjangud, Mysuru district.

Ravi Sankar Devarakonda, liquidator for RTIL, in a note to employees, said financial crisis — no sale orders on hand, the company continues to incur losses and no working capital support from the customers/creditors has led the company to shut down its factory.

“I have made the best possible efforts to run the company as a going concern for over 14 months since the commencement of liquidation but I regret to inform that I have no option than to discontinue the business operations,” he told employees.

To discontinue business operations, the liquidator citied the following reasons: Ongoing job work arrangement has been discontinued by RNT Distributors Private Limited. There are no sale orders on hand as on date. The company continues to incur losses at EBITDA level. The power supply has been discontinued due to non-payment of dues. There is no working capital support from the customers/creditors of the company and no available cash flows to run the day-to-day operations of the company.

“The meeting held on May 5, the challenges faced by the company were discussed with the stakeholders (financial creditors) of the company and the conclusion reached to permanently shut down the operations of the plant and to discharge employees,” Devarakonda said in notice of discharge to employees.

The factory closed its operations on May 14 and relived all its employees from services. Pending dues for the liquidation period and the full and final payment to be paid to employees is being dealt with accordance with the provisions of the Code.

Published on May 20, 2020

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