In 1997-98, Carews reported its first loss, on a turnover of Rs 30 crore. Inthe next financial year, the brand itself was sold to Roussel's new avatar,Hoechst Marion Roussel India (HMR), and this year, HMR cut off theproduction lifeline.

With no work at two factories, the Carews top brass and the UB managementare reported to be meeting in Chennai on December 7. Late last month, it wasreported in a section of the media that the UB group has decided to get outof non-core businesses and stick to liquor.

Carews' financial woes were due in part to loans worth Rs 12.70 crore andinterest cost of Rs 4.50 crore. In the year to March 31, 2000, it reported aRs 12.66 crore loss and its net worth was wiped out several times over.

It sought a listing with the Board for Industrial & Financial Reconstructionunder Section 15 (1) of the Sick Industrial Companies (Special Provisions)Act, 1985.

However, the BIFR rejected the request after Carews denied access to theauditors. The company then moved the Appellate Authority for Industrial &Financial Reconstruction.

Carews Pharma has two factories in West Bengal, one of which is under worksuspension, while the other has no orders. Employees of the second factoryand the head office have been paid part of their dues till June 2000.

After Combiflam and another brand Speedoral were sold, the new ownerscontinued to place orders with Carews up to March 2000.

In a letter to the Director of Drugs Control in West Bengal, HMR'svice-president, Dr Y Khandelwal, noted that the company has decided todiscontinue the manufacture of the products at Carews effective from April1, 2000. He said: "These licences may, therefore, be kindly considered ascancelled, by you". None of the Carews directors was available forcomment.

It is gathered that the employees at the head office are remaining unpaidsince June and also are unable to withdraw money from their provident fund.They allege that there has been no provident fund audit for some time now.Telephone lines have been disconnected and the directors have stopped comingto the head office.

In a letter to UB's chairman, Mr Vijay Mallya, the employees had appealedfor a voluntary compensation or any other alternative. The letter alsopointed out that the employees had intimated the hardship to the seniors anumber of times, without success.

The BIFR has not taken a sympathetic stance on the company's effort to get asick berth. In its order rejecting the company's plea for a sick berth, thebench noted: "The intentions of the company are dishonourable and theirhands are not clean". It is learnt that the AAIFR is likely to schedule ahearing in January.