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Monday, August 9, 1999

BIFR tags sick status to Kerala Hi-tech Industries 

UNITED NEWS OF INDIA  
New Delhi, Aug 8: The Board for Industrial and Financial Reconstruction (BIFR) has declared state-owned Kerala Hi-tech Industries Ltd (KHIL) a sick company following complete erosion of its net worth by accumulated losses. The board noted that the company's accumulated losses stood at Rs 15.62 crore as against Rs 12.99 crore as on March 31, 1997 and declared the public sector unit sick under section 3 (1) (0) of the Sick Industries Companies (Special Provisions) Act, 1985.

KHIL managing director Johnson Peter said the company is suffering from high interest burden and has sought interest-free loans from defence research and development organisation (DRDO) and Indian space research organisation (ISRO) of the depart of space. Also, a proposal has been mooted with the planning commission to get the required funds to clear off the dues of banks and financial institutions. The company's entire production would be absorbed by ISRO and DRDO, Peter said. With investments of Rs 34.79 crore in plant and machinery,the company has a working unit in Kerala.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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