Kolkata, 3 May: Jessop&Co Ltd (JCL) has turned around and come out of Board for Industrial and Financial Reconstruction (BIFR).
BIFR, in an order dated April 28, 2006, has announced that Jessop&Co Ltd (JCL) ceased to be a sick industrial unit and discharged JCL from the purview of BIFR.
In an official statement here today, the company said the JCL would be deploying its resources in more productive way and go ahead with its plans to diversify into new product lines and expand product base to suit the needs of the global market.
In its order, the two-member bench of BIFR recognised the change in the financial status of JCL and subsequently discharged the company from its purview.
Speaking on this issue, Jessop&Co Ltd Chairman Pawan Kumar Ruia said, ''Execution of big orders without bank finance has been a huge problem for Jessop. Coming out of BIFR will solve the problems to a great extent as the company can now avail of working capital loans from banks and financial institutions. Jessop has orders worth more than Rs 100 crore in band. Things are certainly looking up for Jessop.'' JCL was formed in 1788 by the sons of William Jessop, an eminent British engineer. After independence the company was sold by the British and subsequently JCL was converted into a public sector unit.
The PSU, with capacity to manufacture railway coaches and wagons, road rollers, structural components and cranes and hydraulic equipment, suffered heavy losses in the first half of the nineties and as a result came under the purview of BIFR in 1995.
Till 2002 JCL had a burden of an accumulated loss of over Rs 500 crore.
In 2002 Union Government invited bids for reviving the ailing engineering giant and a consortium of companies controlled by Pawan Kumar Ruia emerged as the highest bidder.
On August 29, 2003, after a protracted court battle, the management control along with 72 percent shares of JCL was handed over to the Ruia Group as the strategic partner of the Union government.
However, the group turned around and earned a net profit of Rs 4.82 crore in 2004-05.
UNI JYN KK SRC/DB1732