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

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Continued Distress

Continued Distress Hansavivek BRAITHWAITE's management was taken over by government on March 6, 1971, following closure of the company's head office and Clive Works from January 18 of that year on account of the very unsatisfactory raw materials and finance position and the adverse labour situation. These establishments were reopened on March 29, 1971. Accounts have been compiled for the 15 months ended March 1971, the period preceding the take-over of the management. These show a staggering loss of Rs 409 lakhs which lifted the accumulated loss to Rs 510 lakhs. The subscribed capital is only Rs 200 lakhs, including Rs 40 lakhs in. preference shares. Total reserves amounted to Rs 66 lakhs. The auditors have further estimated that, in respect of contracts in progress and those accepted but not commenced upto the end of March 1971, losses are anticipated to be around Rs 5 crores. There were, besides, arrears of dividends on preference shares (Rs 8 lakhs), of payments to the provident funds (Rs 53 lakhs). of payments for income-tax deducted from employees' remuneration (Rs 8 lakhs), of payment of the sales tax authorities (Rs 21 lakhs), and accrued liability for future payments of staff gratuity (amount unascertained). Government has already loaned the company Rs 6 crores.

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