Warren Tea Seeks Nod For Icd Ceiling Hike

The company's inter-corporate deposits have increased by more than 115 per cent from Rs 7.5 crore to Rs 16.1 crore in 1995-96.

This has amounted to an excess of lending over a limit of Rs 1,58,686 by Warren as prescribed under section 370 of the Companies Act.

At the same time the company's secured borrowings have increased to Rs 14.3 crore in 1995-96 compared with Rs 85.2 lakh in the previous year.

Almost 95 per cent of the company's secured borrowings included overdrafts from scheduled banks to the tune of Rs 13.57 crore.

Company sources said the entire portion of the excess borrowings by the company has been made as inter-corporate deposits.

However, interest from the inter-corporate deposits have increased substantially over the last one year from Rs 63 lakh to Rs 2.7 crore. With a production gap of 11 lakh kg in 1995-96 from 13 gardens, it was difficult to assess the amount of reserves the company would generate, a source said.

Tea, being a seasonal industry, is highly dependant on the profitability of the market which again is dependant on weather conditions, he added.

The company's tea sales registered a marginal increase of 2 per cent to Rs 84.21 crore due to higher price realisations.

There was, however, a substantial loss in the quantum of crop.

The company recorded a net profit of Rs 5.8 crore in 1995-96 compared with Rs 2.5 crore in the previous year.

The current year has not augured well for Warren Tea due to the adverse growing conditions that prevailed during the year. However, it managed to increase its saleable crop marginally.

With a view to enhance production, the tea company has decided to undertake replanting and uprooting at a much faster rate.

It has earmarked Rs 25 crore for the development of its fields and factories, with Rs 5 crore being spent annually, said the source.sp"-->