The Hindu : ITI turns sick, referred to BIFR

Online edition of India's National Newspaper
Wednesday, Oct 01, 2003

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Business

ITI turns sick, referred to BIFR

By Our Staff Reporter

BANGALORE SEPT. 30. The public sector telecom equipment maker, ITI, on Tuesday, sought consent from its shareholders to inform the Board for Industrial and Financial Reconstruction of the fact that heavy losses had more than halved the company's net worth.

For 2002-03, the company suffered a loss of Rs. 375 crores with a net worth of Rs. 452.32 crores.

The net worth per rupee of the company's Rs. 388 crore paid up capital was minus 10 paise, the latest annual report said.

At an extraordinary general meeting here the shareholders approved the move to inform the BIFR of the company's position and of possible means by which it might get back in the black. The company had an order book position of Rs. 1,700 crores, a company spokesman said. Earlier in the day, at the company's annual meeting, Y. K. Pandey, Chairman and Managing Director, said the company had tried to trasform itself from an equipment maker to a turnkey services provider to shore up revenues.

While orders of C-DOT equipment had become a trickle — pushing the company more into red — 45 per cent of the Rs. 1,795 crores turnover during 2002-03 came from services, Mr. Pandey said.

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