The Hindu Business Line : It's curtains for Incab Industries

ALL roads for reviving Incab Industries Ltd seem to have closed. Finding that repeated attempts to revive the company have failed, the Board for Industrial and Financial Reconstruction (BIFR) has confirmed its opinion on winding up the company.

In its recent order the Bench observed that, "It is noticed that this case has been pending with the Board for more than five years and there is no fully tied-up rehabilitation proposal available for consideration."

The Bench further noted that, "Even the change of management which was attempted three times has not yielded any fruitful response for revival of the company. We, therefore, conclude that the present promoters and others concerned are neither serious nor resourceful enough to revive the company." Incab Industries was declared sick in April 2000. State Bank of India was appointed as the operating agency (OA) to examine the viability of the company and formulate a rehabilitation scheme based on the company's proposal for its revival, if found viable.

In its order dated July 25, 2003, the Board, after noting that change of management was advertised three times instead of normal practice of once, but without any favourable outcome, formed a prima facie opinion that the company was not able to make its net worth positive within a reasonable time.

The Board, accordingly, issued a show-cause notice (SCN) for winding up of the company. After considering objections and suggestions on the SCN in the hearing held in October 2003, the Bench had noted that the company had not been able to come forward with a fully tied-up rehabilitation proposal despite adequate time and opportunities available to them to show their seriousness in reviving the company. However, another opportunity was given to the company, with a view to make one more effort for its revival.

At the recent hearing, the Bench said, "Incab Industries is not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its financial obligations, and the company as a result thereof is not likely to become viable in future and that it is in public interest that it is wound up."