While the company is awaiting BIFR registration, after which it would submit a revival programme, the new management, inducted hurriedly on August 20 last, is likely to witness a stormy annual general meeting on December 22 when shareholders are expected to ask questions about the sudden deterioration of the company's financial health.

Since August 20 last, when vice-chairman and managing director PK Saraf put in his papers in not so pleasant circumstances, the company is being run by a management committee comprising directors Kon Ted Liuk, Hemant Kumar Khaitan, H'ng Hsieh Ling (alternate to director Dato H'ng Bak Seah) and P Ghosh. In the audited accounts for the period to March 31, 1999, the directors observed that the loss, which stood at Rs 58.68 crore (before depreciation) as against a profit of Rs 3.09 crore in the previous year, was "attributable to poor market conditions, provision for past liabilities, etc, and the matter is under examination".

Shareholders are likely to question this sudden slump in performance when, according to all knowledgeable sources, there has not been any dearth of orders for the company. But what is ailing the company is a severe cash crunch.

Failing to recover electricity dues of Rs 15.50 crore, Tata Steel on November 22 cut power supply to Incab's establishments including its main works here. The management is yet to convey to the steel major how exactly Incab would clear its power dues. According to the balance sheet for 1998-99, the company has accumulated a a total loss of Rs 134.76 crore including the loss of Rs 23.41 crore for the nine-month ended September 30 last. Further, unprovided-for liabilities of Rs 15.51 crore take the total accumulated loss of the company to Rs 150.27 crore.

Leader Universal of Malaysia has around 53 per cent stake in the Rs 29.76 crore share capital of the company. Around 42 per cent is held by financial institutions (FIs) which include ICICI, GIC, UTI and LIC; while the balance five per cent is held by the public.

The management, which was to convey the financial health of the company to the FIs on December 2, will do so on December 9.

"Our financial position has made it obligatory for us to go to the BIFR. Once we are registered by the board, we would submit a revival plan," vice-president (works) MN Jha on Sunday told The Financial Express.

He admitted that the company is indeed facing a severe funds crunch and pointed out that "our promoters, Leader Universal of Malaysia having put in money, is committed to the revival of the company".