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J.K. Pharma EGM on April 21

Our Bureau

CALCUTTA, March 30

J.K. PHARMACHEM Ltd has called an EGM on April 21 to consider a resolution for reporting to the Bureau for Industrial and Financial Reconstruction (BIFR) under Section 23 (1) (a) of the Sick Industrial Companies (Special Provisions) Act 1985. J.K. Pharma chem, manufacturer of Penicillin-G, has its plant at Cuddalore in Tamil Nadu. It was set up in 1995-96.

According to the EGM notice, the company's networth as on September 30, 1999 saw an erosion by more than 50 per cent of Rs. 82.71 crores, which was its peak networth in the preceding four financial years, that is, as on September 30, 1995.

High project financing cost, over-supply of Penicillin-G and steep fall in unit realisation are the factors that have made the going difficult for the company.

The EGM notice mentions that as part of the revival efforts, the promoters have pumped in Rs. 5 crores. The other steps initiated include restructuring of debt, increase in production through technology upgradation and manufacture of certain other fermen tation-based, higher-value products which command better margins.