Sirpur Paper Mills Limited has posted a net loss of Rs 32. 99 crore and a turnover of Rs 100.92 crore for the second quarter ended September 30, 2013 as against a loss of Rs 19.15 crore and a total income of Rs 87.75 crore for the corresponding quarter last year.
The company had closed last financial year ended March 31, 2013 with a loss of Rs 97.10 crore and a total income of Rs 354.86 crore.
As of September 30, 2013, the accumulated losses amounted to Rs 168.74 crore. This has substantially eroded the net worth of the company. In Financial year 2012-13, the company had entered into an agreement with a consortium of banks to restructure its debt as a part of corporate debt restructure scheme.
According to a statement made by Devashish Poddar, Vice-Chairman and Managing Director of Sirpur Paper Mills, the company has the continuous support from the promoters and has put in place measures for revival and cost reduction which in the opinion of the management would enable the company generate sufficient profits in foreseeable future.
Earlier, during the company’s annul general meeting held in September, a report of Board of Directors explaining the reasons of erosion of more than 50 per cent of the peak net worth of the company was explained. It was resolved to report as potentially sick industrial company to the Board of Industrial and Financial Reconstruction.
The company shares were last traded at Rs 19, down 2.56 per cent at BSE.