Balakrishnan, who was in charge of the flagship company's overall business performance over the last two years, has resigned with immediate effect over the bleeding bottomline of Kirloskar Electric Company.

During the fiscal 1998-99, Kirloskar Electric posted a net loss of Rs 14.43 crore against a net profit of Rs 7.22 crore for the fiscal ended March 31, 1998.

Net sales also nosedived to Rs 417.42 crore from Rs 458.50 crore achieved during fiscal 1997-98. For fiscal 1996-97, the company had clocked a net profit and turnover of Rs 17.77 crore and Rs 516.51 crore respectively.

The company has not yet appointed any new executive director to replace Balakrishnan. In fact, he was reporting directly to the Kirloskar Electric chairman and managing director Vijay R Kirloskar.

Since Balakrishnan is in Chennai seekingnew pastures, he was not available for comment on the issue. Prior to joining the Kirloskar group in 1997, he was with Hindustan Motors Ltd in Chennai.

However, a top official in the Kirloskar group confirmed the move, saying: "The group is now poised for a top level management reshuffle in its quest for undertaking restructuring programmes and improving the bottom line in coming years."

In yet another move, Kirloskar Electric Company vice-president (finance) BM Vinayak had relinquished charge early last year and joined Mysore Kirloskar Ltd as its corporate vice-president. Following this, PR Ramakrishna, who was promoted as senior general manager, is now looking after the finance department of Kirloskar Electric.

The group had also effected major changes in its arm-Kirloskar Batteries Ltd-by bringing back its chief executive officer HV Manjunath who was on deputation to the subsidiary. Manjunath is back now at Kirloskar Electric as deputy general manager (business development division) of KirloskarElectric Company.

The earlier corporate reshuffle was aimed at beefing up the financial position of the electric company with the new leadership expected to steer the company into new areas.

However, the company's diversified investments and expansion plans resulted in the company falling into the red.

As part of its restructuring programme, the company also opened regional offices in the Middle East and Europe. Its bid to takeover the state-run NGEF Ltd has also come a cropper.