CALCUTTA, Dec 30: The AGM of the cash-strapped Shaw Wallace and Company was stormy as employee-shareholders shouted anti-Manu Chhabria slogans to protest against the management's decision to put all resolutions to vote following defeat by show of hands. The date of poll has been fixed for tomorrow and will be conducted at registered office of the liquor firm located in the city.Equity shareholder Hemangshu Ajmera and employee shareholder Mritunjoy Seal were named as observers for the poll. At the last AGM, on August 8, the resolutions were similiarly decided through a poll.
A section of employee-shareholders expressed anguish over the audit qualifications which stated that the auditors were unable to express an opinion about the true state of affairs of the company. They were also apprehensive that the Dubai-based non-executive chairman of Shaw Wallace, M R Chhabria, was out to strip the company of its assets in the name of divestment which would lead to an ultimate liquidation of the erstwhile
blue-chip company.
The employee shareholders also protested against the fresh induction of P L Narasimhan on the company board alleging that he was at the root of all misdeeds. Narasimhan had submitted before the Enforcement Directorate on the siphoning off of Rs 70 crore at the behest of Chhabria.
The MD of Shaw Wallace, Ravi Jain, who chaired the meeting in the absence of Chhabria, explained there were no sinister designs to destroy the company and the management was keen to bring back its lost glory. Angry fixed deposit holders also took the opportunity to protest against the company's inability to redeem their deposits after maturity. Jain assured them that this would be done within the next six to eight months.
He said that currently the liquor and beer businesses of the company were doing extremely well, adding that the company was realising Rs 10 crore every month as operational profits.
During 1996-97, the company registered a net profit of Rs 34 lakh and outstanding liabilities stood at Rs
330 crore. He said the board would be able to declare a dividend next year. According to Jain, the financial plan of the company involved raising resources to pay off laibilities by way of external commercial borrowings, rights issue and disinvestment.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
