Gokak Textiles board approves reference to BIFR

Gokak Textiles today announced its board has approved reporting the company to the Board of Industrial and Financial Reconstruction (BIFR) on account of mounting losses that led to the erosion of more than half of its peak net worth.
"The Board of Directors have approved reporting to the BIFR, the fact of the accumulated losses of the company as at the end of the financial year 2014-15 ended on 30 September 2015, resulting in the erosion of more than 50 per cent of the Company's peak net worth during the immediately preceding four financial years," Gokak textiles said in a regulatory filing.

"For this purpose, the Board has approved the convening of an Extra-Ordinary General Meeting of the Company to be held on or prior to 26 February 2015, in accordance with the provisions of Section 23 of the Sick Industrial Companies (Special Provision) Act 1985 and to take up such other matters in the meeting so convened as required under law," it added.
The board took the decision at a meeting held on 28 December.