BPL trims its losses ahead of revamp

BPL Limited, which is in the final stages of its restructuring process, has reported a net loss of Rs 21 crore for the first quarter of the current fiscal on a topline of Rs 35.5 crore. This is against a net loss of Rs 41.3 crore posted for the corresponding period last year on a topline of Rs 65.1 crore.

According to Ajit Nambiar, chairman & MD, BPL Limited: "We are presently in the process of finalising the overall strategic direction for BPL Limited and its various business divisions in conjunction with PricewaterhouseCoopers. This process is expected to conclude by the month-end with the final ratification by our board of directors."

After having hived off the color television business into a 50:50 JV with Sanyo, BPL Ltd is expected to be left with the healthcare equipment and battery divisions besides contract manufacturing.

The JV, which was signed a year ago, has been stuck in a tangle of legal issues centred around the Rs 1,400 crore debt the company had accumulated. Said Nambiar: "We are in the final stages of concluding our restructuring and starting the JV operations." BPL recently received creditors' approval for its corporate debt restructuring programme and is awaiting the Kerala high court approval for the same.

Meanwhile, the company has got some solace in its appeal on the issue of income tax. BPL had gone on appeal and Income Tax appellate tribunal has now given an order in favour of the company whereby BPL will be entitled to a refund of Rs 2.2 crore with the applicable rate of interest for the assessment years 1996-97 and 1997-98.

The company is approaching the tax authorities for a setoff of the refund of Rs 2.2 crore with applicable rate of interest against the pending IT demand of Rs 4.4 crore.