Textile unit, a drag on KICL performance

By Our Corporate Reporter

CHENNAI, MARCH 27. Kothari Industrial Corporation (KICL) which had convened its annual general meeting today adjourned it as the audited results were not ready. Mr. Pradip Kothari, Chairman, told shareholders the meeting had been convened today in order to comply with statutory requirements under the Companies Act 1956. The accounting year had been extended up to December 31, 1999 (18 months).

Shareholders expressed disappointment over the dismal performance of the company and demanded the Chairman to explain what went wrong and the initiatives taken by the management. Mr. Kothari said since the company had multi-divisional activities spread over the southern States, the compilation of accounts and audit could not be completed and another meeting would be held for the adoption of audited accounts and other business.

He said the textile division had been a drag on the company's performance. He was hopeful of disposing of the division expeditiously as negotiations were in an advanced stage with prospective buyers. The granite division had orders for six months to one year but with shortage of working capital these could not be executed. He hoped the tea division would do well as the industry in general was on a good wicket. The replantations had already been completed resulting in an increase in yield and quantity this year. The company's coffee estates produced 485 tonnes against 405 tonnes in the previous year while the availability from outside for curing was lower at 2,005 tonnes. Also, the price realisation was low, he said.

He said the performance of the fertilizer division, with the expanded capacity, was satisfactory but the profitability was affected as there was no revision in retail prices.

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Section  : Business
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