Bifr Grants Real Value A Four-Week Breather

The Board for Industrial & Financial Reco-nstruction (BIFR) has granted Real Value Appliances a further extension of four weeks to come up with a revival and rehabilitation package.

At a recent hearing, the company pleaded that it was not in a position to submit a proposal to the operating agency - Industrial Devel-opment Bank of India (IDBI) - within the period stipulated earlier by the BIFR. The Real Value promoters reasoned they were busy in sorting out various litigation.

IDBI has been directed to examine the proposal and submit its report after a joint meeting with the concerned parties, within six weeks of receiving the proposal. At the hearing, the company submitted Cease Fire operation unit has been brought to the peak level of production and the output per month has increased to about Rs 2.5 crore. The unit is generating cash surplus now.

The company also informed that negotiations were on with an US-based entity for its revival and rehabilitation. The bench, consisting of chairman M M S Srivastava and member Ashim Chatterji, began hearing by observing Real Value had been declared a sick firm through the board's order dated November 15, 1997. The order had also appointed IDBI as the operating agency to prepare a rehabilitation report with respect to the guidelines provided by the board. The bench expressed satisfaction with the change in the accounting year and the provisions of depreciation and interest as incorporated in the impugned balance sheet. It said they were permissible under the provisions of the Companies Act, 1956.

Earlier, Canara Bank had objected to the change in the accounting year of the firm,besides the provisions for depreciation and un-provided interest. However, at the latest hearing, representatives of the bank said they had no other complaint against the firm. The bench said the objections raised by Canara had been examined in detail by IDBI and the BIFR's stance was based on status report submitted by the operating agency.