Rel Silicones Given 3 Months For Revival Plan

The decision of the BIFR comes after the management of Reliance Silicones persuaded that the sick company would make a turnaround within the next six months and would start repayments to banks and institutions within a month or so.

Reliance Silicones, manufacturer of silicon polymers, was declared sick in September 1996. According to the company balance sheets, at the end of financial year 1994-95, the accumulated losses suffered were Rs 14.68 crore which had totally wiped off its paid up capital of Rs 1.05 crore.

The company had free reserves of Rs 6.50 crore till 1992 which were subsequently wiped off due to continuous losses in the following three years.

 

Explaining the reason behind the companys sickness, A Hattangadi, managing director of the company said the they used to import chlorosilane from Wacker Chemie, a Hoechst group company, for the manufacture of silicone polymers.