ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

Despite Government Takeover. . .

Despite Government Takeover. . . Hansavivek INDIA UNITED MILLS, which has been under government management for about 6 years, has gone deeper into the red. With a fresh loss of Rs 2,75 crows in 1970, against Rs 2.07 crores in the preceding year, the accumulated deficit has mounted up to Rs 12.04 crores. The company's share capital is only Rs 2,50 crores. The company has not paid (a) to the provident Fund authorities Rs 1.09 crores collected From workers and Rs 1.58 crores as its own contribution, (b) to the Enrployees' State Insurance authorities its own contribution aggre- gating Rs 49 lakhs, and (c) dividend for 1961 though it was demanded by the shareholders. Also no provision has been made in the accounts for bonus to employees. In accordance with the decision or the Bombay High Court, the company was exempted from the provision of the Payment of Ronus Act since it was taken over by Government. But the High Court has grauted certificate to the applicant workmen to go in appeal to the Supreme Court, and the applicants have filed a petition. The decision of the Supreme Court is awaited. Moreover, among the contingent liabilities not provided for is the workmen's gratuity estimated at about Rs 58 lakhs. During 1970, the company received further loans of Rs 80 lakhs from Maharashtra Government which has also extended the period of repayment of a temporary loan of Rs 65 lakhs by a year to March 1, 1972. Further loans amounting to Rs 1.39 crores have been received troin the State Government during the current year, which too, are repayable? on March 1 next. Besides, the State Government has extended the dates for payment of all the previous loans grauted to the company till November 28, 1971, and renewed the moratorium on payment of interest on the loans of Rs 213.50 lakhs for a year till the end of November next. The company has requested the Stale Government to grant a moratorium on payment of interest on the remaining loan of Rs 2.84 crores for a "further suitable period". The company has received a loan of Rs 1.15 crores from National Textile Corporation, New Delhi. It has not received any fresh loan, however, from the Union Government during 1970. Since I960, the company has not paid interest on the Union Government loans amounting to over Rs 5 lakhs for Union Government had granted a moratorium

To read the full text Login

Get instant access

New 3 Month Subscription
to Digital Archives at

₹826for India

$50for overseas users

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top