While The Sirpur Paper Mills Limited has applied to the Registrar of Companies for extension of time for holding the company’s 76{+t}{+h} Annual General Meeting for the financial year 2014-15 citing special reasons, the Telangana Government has initiated discussion with bankers for possible revival of the company.
Various options are being considered, including change in management to save the company and also thousands of people dependent on the ailing Mills.
The company is faced with severe financial crisis and liquidity crunch and has seen erosion of its entire net worth as per the audited annual accounts of the company as of March 31, 2014 adopted by the company AGM held on September 2014.
The company is not in a position to make payment of salaries/wages to staff and workmen. The books of account maintained at its factory office in Sirpur Kagaznagar in Adilabad district in Telangana. The company senior officials, including Chief Financial Officer and other senior officers have left, and the company is now unable to finalise the annual financial statements.
The management has referred to the Board for Industrial and Financial Reconstruction (BIFR) on November 24, 2014 for determination of follow up measures ad enquiry under the provisions of Sick Industrial Companies (Special Provisions) Act is in progress.
The Telangana Government today held a meeting with Bankers to explore various options for revival of the Mills, including the possibility of change in management. At a meeting chaired by the State Chief Secretary Rajeev Sharma in the presence of senior State Ministers and lenders of the company, various possibilities were discussed.
It was decided to hold another meeting later this month where lenders would come forward with a detailed note on their financial exposure and also facilitate possible takeover by potential suitor without any hassle.
Founded in 1938, the integrated paper mills employ over 3000 people. It had closed 2013-14 with a revenue of Rs 423 crore and loss of Rs 90 crore. Its shares were suspended for penal reasons. The paper company is one of the major projects in TS.