The company is a major player in automotive parts and domestic appliances. IFB has entered into a technical-license agreement with Kuster & Co GmbH of Germany for the manufacture of both manual and power-operated window lifters for cars.

In domestic appliances, IFB claims to have fully absorbed the technology it obtained from its former partner Bosch of Germany for fully-automatic washing machines and for variable speed "FHP" motors from Siemens AG.

The company had extended the 12-month accounting period by six months and reported a Rs 61.58 crore loss in the 18 months to December 31, 1997, against a Rs 26.59 crore profit in the usual year to June 30, 1996.

According to IFB's 1997 annual report, the 30.50 lakhwarrants allotted to it were to be converted at Rs 148 each including a premium of Rs 138. The company paid only Rs 2.50 each against the application money of Rs 37 per share (including a premium of Rs 34.50). The warrants were allotted in 1995-96.

The rest of the payment including the allotment money was deferred till March 31, 1998, according to the annual report.

However, company sources said it was decided at a subsequent board meeting that the payment will be deferred again, till September 30, 1998.

According to the annual report, the company is acquiring the equity shares of IFB Automotive Seating & Systems Ltd (formerly known as RHW India Ltd) a 75 per cent subsidiary held via foreign outfits. IFB will have to pay Rs 29 lakh to pick up the remaining stake.

According to the directors' report, the investments in the domestic appliances division resulted in a "very heavy interest burden owing to high cost of funds." Interest burden increased by 159.81 per cent to Rs 57.99 crore (Rs 38.66 croreannualised) in the 18 months to December 31, 1997, against Rs 14.88 crore to June 30, 1996.

IFB was sanctioned an external commercial borrowing (ECB) of $5 million from Chinatrust Commercial Bank in September 1997. The loan is to be secured by charging/ mortgaging or by hypothecation of all fixed assets on first charge basis.

The company has also obtained a Rs 20-crore rupee term loan under the project-finance scheme of the Industrial Development Bank of India (IDBI). With this money, the company will increase the manufacture of automotive sub-assemblies and expand its units at Bangalore and Calcutta.

The Small Industries Development Bank of India (Sidbi) has also renewed the sanction for credit facilities of Rs 3 crore under its Direct Discounting of Bills (Components) Scheme.

IFB has decided to privately place 18 per cent non-convertible debentures worth Rs 8 crore with institutions. This will be placed as a resolution before the shareholders at the annual general meeting on September 23.