Nag said: "The decision to dispose of any unit will be a strategic decision and will be done after the financial restructuring. In case a unit is wound up, the interest of the minority shareholders will be safeguarded." He also hinted at a possible merger of the financial associates of IFB Industries, namely IFB Finance, IFB Securities and IFB Venture Capital Finance.

IFB Industries reported a loss of Rs 61.58 crore for the 18 months to December 31, 1997. For the 12 months to June 30, 1996, the company reported a profit of Rs 26.59 crore.

There has been a marginal decline in sales to Rs 380.81 crore (Rs 253.87 crore on an annualised basis) in the 18 months to December 31, 1997, from Rs 273.24 crore in the 12 months to June 30, 1996. Nag,however, chose to avoid a question raised by one of the shareholders regarding the deferred payment of allotment money by the promoter group for 30.50 lakh warrants, against which the promoter group will be entitled to an equal number of shares.

Nag also avoided a clear answer as to how the company would service the huge loan and interest burden that it has built up. A shareholder warned the management of an impending debt trap, since the total loan (secured and unsecured) had increased from Rs 157.48 crore to Rs 288.25 crore during the 18-month period.

Regarding the takeover of Crestwood Enterprises of Mauritius, Nag said: "The management of the company was siphoning off funds and not paying off the dues of IFB Industries, although it ran a profitable business. We applied to the government and have taken over the assets of the company.

It is a potential foreign-exchange earner, but we have not decided as yet whether we will run the business or get out of it." Responding to a query, Nag said that thepromoter group had no prior interest in the company. Speaking about the investments made in the past from which the group is trying to move out now, Nag said: "Those were mistakes and we will have to rectify them. We will look very carefully at all the investments and whatever we find as non-profitable will be written off."