Gangotri Textiles, an integrated textile company, informed the BSE on Friday that due reference will be made to the Board for Industrial and Financial Reconstruction (BIFR) in terms of Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985.
The company registered Rs.68 crore net loss for the quarter ended March 2013 as against Rs.11 crore during the last quarter of 2011-12. The net loss for the whole of 2012-13 is Rs.108 crore as against Rs.44 crore in the previous year. The accumulated losses for the financial year ended March 31, 2013, have eroded the peak net worth of the company.
Gangotri Textiles launched Tibre trousers in 2000 and Fugo brand in 2008. In 2005, the company went in for Rs.351 crore expansion.
An official of the company told The Hindu on Friday that Gangotri’s weaving and processing facilities stopped operations in January last year.
Though there was no revenue from these units now, the investment and interest burden continued. Income from the existing units had also dropped (nearly 46 per cent in 2012-13 compared to the previous year), and these were the main reasons for higher losses last fiscal, he said. An action plan was under consideration for reviving the company, the official added.