The final step towards the BIFR, taken just one month after chairman Bijon Nag had told shareholders the company would bounce back, was the sole resolution at the extra-ordinary general meeting. The EGM itself was over in 22 minutes, the usual span for the company's AGMs as well.

The car parts and home appliances maker admitted that it was in a debt-trap and had wiped out over half its net worth.

The EGM was attended by 12-odd shareholders and two executive directors - vice-chairman and joint managing director K Srinivasan and Dipak Mitra, both formerly with Shaw Wallace & Co Ltd - apart from Bikramjit Nag, a non-executive director and son of Bijon Nag.

Srinivasan refused to answer the questions of the only shareholder to speak up, TK Majumdar,noting that he preferred a `personal interaction' on the queries.

Like the company's annual general meeting on September 30 this year, the EGM was over in 25 minutes.

The EGM notice seeking the shareholders approval had listed several factors behind the slide in the company's fortunes. It noted that the new project for manufacturing dishwashers, microwave ovens and clothes dryers was seriously constrained by the long gestation period and considerable interest burden.

Other factors were the high-cost borrowings at rates around 20.72 per cent, huge losses due to exchange fluctuation, Asian economic meltdown and go-slow at the Goa factory.

Bijon Nag, chairing the September 30 AGM, had noted that business was being restructured and expected that projections would look up, saying: ``Give me six months, I'll bounce back.''

However, exactly a month later, on October 30, the board settled for a BIFR referral in line with provisions laid down under Section 23 of the Sick Industrial Companies (SpecialProvisions) Act, 1985.

The company's scrip is quoting at around Rs 9 on the Calcutta Stock Exchange with Rs 18.90 and Rs 5.80 as its 52-week high and low respectively.

Shareholder Majumdar pointed out that, had the promoters paid their portion on the 30.50 lakh equity shares issued to them in 1995-96, the company could have saved Rs 5 crore annually towards interest.

The annual report notes that the promoters paid only Rs 2.50 for each for the 30.50 lakh equity shares of Rs 10 each issued at Rs 148 each.

With accumulated losses at Rs 47.54 crore to December 31, 1998, the equity capital of Rs 13.47 crore has been wiped out many times over. Its interest burden had increased by 33 per cent to Rs 51.52 crore to December 31, 1998, on a 13.24 per cent increase in total borrowings to Rs 332.30 crore. IFB posted a Rs 55.17 crore net loss for the year to December 31, 1998, from Rs 61.58 crore (Rs 41.05 crore annualised) in the 18-month accounting period to June 30, 1998. The turnover also dipped by 17 percent to Rs 211.36 crore to December 31, 1998.

In response to the management's reasoning that exchange fluctuations had taken its toll, Majumdar noted that dues on exports persisted since 1993. He pointed out that the company had neither opened any letter of credit with the bankers nor paid any premium to ensure a 90 per cent cover on the exports from the Export Credit Guarantee Corp.

It also had no forward cover on the external commercial borrowings.

Statutory auditors Bhadra & Bhadra had blacked out the company's last annual report with a series of comments.