The engineering outfit was referred to the BIFR in fiscal 1995-96, after it reported that its net worth has been wiped out.

BIFR has asked parties including shareholders, creditors and employees who intend to support or oppose, to attend the hearing before the bench-I(IV) on August 18.

According to Dewrance Macneill's latest available balancesheet with the registrar of companies, it had an accumulated loss of Rs 9.34 crore for the 18-month period to September 30, 1996. It manufactures boiler mountings, fittings and flow control valves.

Its management had noted that the networth had been wiped out on September 30, 1996, and was referred to the BIFR under Section 15(1) of the Sick Industrial Companies (Special Provisions)Act, 1985.

The management attributed the adverse financials to low capacity utilisation, unremunerative product mix, high interest burden and huge wage bill. The company was struggling for need-based working capital loans from banks, its annual report noted.

It reported a turnover of Rs 15.13 crore (Rs 10.09 crore annualised) to September 30, 1996, against Rs 11.65 crore in the previous year. Its cash loss in the 18-month period increased to Rs 6.13 crore (Rs 4.09 crore annualised) as compared to Rs 2.81 crore in the previous period to March 30, 1995.

In its bid to augment long term fund requirement, it made an offer of 15 lakh equity shares in the ration of three new shares for every seven shares held.

Williamson Magor's annual report for fiscal 1997-98, show that it had hiked its investment to Rs 1.20 crore in 1997-98 against Rs 84 lakh in the previous year. Magor invested a further Rs 36 lakh in 3.6 lakh unquoted equity shares of Rs 10 each in addition to 8.4 lakh shares held by it till fiscal1996-97.

With Magor's company secretary out-of-station, other officials are tight-lipped on the fate of the company's fund exposure in Dewrance. On condition of anonymity, they said the management will abide by the decision of the BIFR.

In fact, Magor's auditor in its notes in the latest annual report has noted about its fund exposure of around Rs 3.35 crore in a company referred to the BIFR. This includes investments of Rs 1.20 crore, debts of Rs 53.78 lakh and loans of Rs 1.61 crore.

Dewrance Macneill's revival strategy which was earlier submitted to the BIFR had focused on rationalisation of manpower, restructuring of bank liabilities, change in product mix, diversification into production of steam conditioning equipment leading to value-additions.

In late 1997, the management had floated a voluntary retirement scheme aimed at bringing down the workforce from the-then strength of around 200 to 130, which was in line with the recommendations of its bankers. It had also shifted its factory to theoutskirts.

The auditor had noted that while the company was "generally regular" in depositing provident fund dues, it was "regular" in depositing its contribution for Employees' State Insurance.

Sales tax liability of Rs 4.84 lakh was outstanding and was not provided by the company, according to its auditor's notes. The company showed that claims of around Rs 26.06 lakh was being contested in respect of sales, purchase and turnover tax. Income tax demand of Rs 31.06 lakh was under appeal and was also shown under contingent liabilities.