Peerless chairman DN Ghosh told shareholders at the company's 66th annual general meeting here on Wednesday that negotiations are on to sell Peerless' stake in a few associates, including Abasan.

``The process of winding up a few companies and disengaging from the management of a few others is gathering pace. Negotiations are under way to sell our stakes in a few associates,'' he said.

During 1998-99, Peerless Abasan's operating income dropped by over 10 per cent to Rs 6.38 crore from Rs 7.10 crore in the previous year. However, its net profit dipped by 95 per cent to Rs 3.74 lakh to March 31, 1999, from Rs 80.84 lakh in the previous year.

In addition to its plans to sell Peerless Abasan, the company is planning to sell Cicico Ltd.

Its wholly-owned overseas subsidiary Peerless Global wasofficially wound up on July 1, 1999, with a net loss of Singapore $1.66 lakh. Peerless held entire issued share capital comprising 2,00,000 ordinary shares of S$1 each.

During 1998-99, liquidation proceedings were initiated for companies like Telerama, Gemstone, Peerless Infotech, CEE Eectronics, EL Graphico, Ohmtron and Frazer-Nash, where Peerless was associated in the management.

According to Ghosh, once Peerless disengages from Abasan, the management will be looking at Peerless Securities Ltd, which posted a net profit of Rs 18.62 lakh during the year.

However, the Peerless management has noted with concern the performance of its two main subsidiaries -- Peerless Hotels Ltd and Peerless Hospitex Hospital & Research Centre Ltd.

Of the two, Peerless Hospitex Hospitals has an accumulated loss of Rs 26.82 crore as on March 31, 1999, on a share capital of Rs 12.64 crore. In addition to this, Peerless has advanced interest free loans of Rs 35.17 crore to it.

Another subsidiary, Peerless Developers Ltd,has an accumulated loss Rs 10.23 crore on a share capital of Rs 3.20 crore.

Apart from the restructuring of the 26-odd subsidiaries, associates and companies in which Peerless has a stake, Ghosh spoke on the company's plans to dismantle the 18-tier commission structure system.

Though 18-tier has been successful in pockets like Calcutta and Delhi, it has been a total failure in south India. He said there is "no sense in continuing the 18-tier system".

The dip in deposit collections is being viewed with concern by the management. Deposit collection fell by three per cent to Rs 352.22 crore in 1998-99 from Rs 361.21 crore in the previous year. Collections under the new schemes increased by around 18 per cent to Rs 78.96 crore in 1998-99 from Rs 66.96 crore in the previous year.

Peerless has increased its total investment in government approved securities to 81.43 per cent or Rs 5124.90 crore in 1998-99 from 65.67 per cent in the previous year.