Duncans Industries, belonging to the G.P. Goenka group, has reported a sharp rise in its loss at Rs. 20.58 crore during the quarter ended June 30, 2015, as compared to a loss of Rs. 2.01 crore in the same period year-ago and Rs.30.69 crore loss made in the year ended September 30, 2014.
The tea company, which is now a sick unit listed with the BIFR, has 11 large gardens in West Bengal’s Dooars and Terai in sub-Himalayan region with two gardens in Darjeeling.
However, most of these gardens are languishing or are closed leaving the workers in the lurch. The company’s income from operations stood at a mere Rs.8.42 crore during the quarter under review against Rs. 21.96 crore in the year-ago period. Public shareholding in the company is 14.5 per cent of which institutional shareholding is very minimal. The promoter group holds the rest, most of which is pledged.
The company’s auditors Lodha & Co commented in their limited review, on the non-availability of complete data and details and certain costs and charges, which they said have been recognised on an estimate basis.
Duncans said that its operations have been adversely affected due to labour unrest leading to financial stringency. Pointing out that tea is seasonal in nature, the company said that results for the current quarter were not representative of future performance.
The financial health of West Bengal tea companies has become a cause for concern for the industry and the State government alike and with the Assembly elections due next year the Mamata Banerjee government has been on an overdrive to address the sector’s problems. Some 2.6 lakh workers and their families are dependent on the tea industry in this State.
Although at least two other city-based listed tea companies are in the red now with their margins coming under pressure, none have entered the sick bay like Duncans.
