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Kolkata , Sept. 24

THE ailing Nicco Corporation Ltd is hoping to achieve a turnaround by 2005-06, according to Mr Rajive Kaul, Chairman of the company.

He was talking to reporters after addressing the shareholders at the 20th annual general meeting of the company. According to him, the company has requested its banks and financial institutions to accept a long-term debt-restructuring programme.

The debt restructuring programme is currently pending before the Corporate Debt Restructuring (CDR) Cell which comprises representatives from the banks and financial institutions.

Nicco Corporation's lead banker is Allahabad Bank and lead financial institution is ICICI Ltd. Mr Kaul said that a reference paper on the debt restructuring proposal would be submitted to the CDR cell by end-October.

In the debt restructuring programme, the company has urged the lending institutions to extend the repayment period of the loans, reduce the interest rates and convert some loans into preference shares.

Meanwhile, the West Bengal Industrial Development Corporation (WBIDC) and the Technology Development Board (a Union Government body) have agreed to convert their dues of Rs 3.37 crore and Rs 18.46 crore respectively into cumulative redeemable convertible preference shares of Rs 100 each.

On Wednesday, the shareholders approved the company's proposal of increasing the authorised capital of Nicco Corporation to Rs 60 crore from the Rs 38 crore at present. The increased capital base would be divided between 3.8-crore equity shares worth Rs 10 each and 22 lakh cumulative redeemable convertible preference shares of Rs 100 each.

"We are increasing the capital base of the company to accommodate the new preference shares. If the CDR is accepted, then we can expect to turn around this company by 2005-06," Mr Kaul said.

For the year ended March 31, 2003, Nicco Corporation registered a turnover of Rs 214.41 crore against Rs 359.56 crore in the previous financial year. The net loss increased to Rs 53.74 crore from Rs 22.19 crore. The company has also decided to delist its shares from Bhubaneswar Stock Exchange, Madras Stock Exchange, Delhi Stock Exchange and Bombay Stock Exchange. Nicco would stay listed in Calcutta and National Stock Exchanges.

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