The board considered in detail the report of consultants Ernst & Young Private Ltd on the "partial restructuring scheme".

Senior company sources said the committee has directors PK Mallik (partner, Price Waterhouse), Pramod Khaitan and noted industrialist BP Bajoria. The panel's immediate priority is to get the textile unit valued by Ernst & Young and get the necessary statutory approvals from shareholders and the high court.The textile unit has been suffering for the last couple of years due to severe demand recession both at home and abroad. Price realisation for finished products has been falling at a time when prices of cotton and other inputs like coal, power and wages have gone up.

As a result of poor productivity, high damage and wastages in the textile unit, the management declared suspension of work at its Garden Reach factory in Calcutta on January 5, 1998, which is still continuing.

The board also recommended a dividend of Rs 1.50 per equity share against Rs 2 per share declared last year.

The dividend will absorb Rs 7.84 crore against Rs 10.46 crore in the previous year.During the year to March 31, 1999, the company reported a turnover (including inter-section transfers) of Rs 681.69 crore (subject to audit) against Rs 715.34 crore. Gross profit was Rs 48.83 crore against Rs 56.50 crore.

The company's 20 per cent share of the surplus of Birla Tyres operations increased to Rs 6.68 crore from Rs 4.36 crore in 1997-98. The net profit after depreciation and provision for MAT stood at Rs 4.75 crore against Rs 18.42 crore.