ISWP has been ailing for sometime now, and according to the company's latest 18-month annual report released a few days ago, its board of directors has "resolved to make a reference to BIFR for determination of measures to be undertaken under Section 15 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 as the company's accumulated losses has exceeded its net worth as on March 31, 2000.

The company is scheduled to hold its annual general meeting here on Monday, October 30. ISWP has its registered office in Calcutta while its only works is located here.

The company, with a Rs 99.19 lakh equity capital listed on the Calcutta Stock Exchange, is headed by Mr Ravi Inder Singh as chairman and managing director. It also has Captain Amrinder Singh, the Maharaja of Patiala, on its board of directors.

Speaking to the press on Wednesday on the eve of Diwali, Tata Steel managing director Mr JJ Irani said "a month back we had talks, and thereafter we prepared an agreement to which I have signed, but Mr Ravi Inder Singh has yet to do so."

According to a senior Tata Steel spokesman, ISWP owes Rs 41 crore on account of power and interest charges for the last few years.

He added that ISWP would not lose its identity and that it (Tata Steel) will "only be in control of the management of the company."

Into the production of wire rods and cast iron and steel-based rolls, the once profitable ISWP, due to paucity of funds, did not have any production for 15 out of the 18 months to March 31, 2000. It had likewise, no production in nine out of its previous 18-month period to September 30, 1998.

Its turnover during the two 18-month periods have been Rs 35.07 crore (Rs 63.98 crore) with losses of Rs 19.54 crore (Rs 7.98 crore). Its total accumulated loss as on March 31, 2000 stood at Rs 27.52 crore.

ISWP has an installed capacity to produce 2 lakh MT of wire rods in coils, 1.12 lakh MT of hard bright wires, 12,000 MT of annealed and galvanised wires, 4,000 MT of cast iron and steel-based rolls along with capacities for producing bolts and nuts, barbed wire, etc.

It had, however, produced only 25,336 MT (30,055 MT) of wire rods, 374 MT (8,773 MT) of hard bright wires, 3206 MT (3,621 MT) of cast iron and steel-based rolls, etc during the last two 18-month periods (figures for the previous 18-month period in brackets).

The company has not shown a break-up of its Rs 36.10 crore sundry creditors in its published accounts and has only acknowledged that this liability included Rs 7.30 crore as "accrued wages, sales and other dues to its employees" and that Rs 24.77 lakh was "due to small scale and ancillary undertakings."

Its 1,200 employees have been receiving only 50 per cent of their salary since March 1998. There is, thus, no explicit mention of its dues to Tata Steel on account of power charges.

The company has, however, accepted that a "contingent liability" of Rs 18 crore (previous year Rs 17.09 crore) exists on account of "disputed power bills on account of differential tariff between BSEB (Bihar State Electricity Board) and DVC (Damodar Valley Corporation) and annual minimum guarantee bills, surcharge on fuel cost and interest charges raised by Tisco". Of this, it says it has already paid Rs 2.95 crore in terms of the order of the Ranchi bench of the Patna high court.

"He wants to discuss the matter further. I had given him time not once but twice at Mumbai and he could not come. If he wants to see me again, I am available," Mr Irani said, adding "I can't tell you anything more now. We think that a fair agreement reached at and agreed to is ready to be signed".

Asked what the terms of the agreement were, the Tata Steel managing director only said, "when both the parties sign you'd come to know what the agreement is".

Tata Steel had on a trial basis successfully operated ISWP's wire rod plant for a three-month period between January 1 to March 31, 1999.

It had collected data on the working of the plant during that period and had found it viable.

"We would like to see the company running smoothly once again and its 1,200 employees and their families happy," said Mr Rakeshwar Pandey, president, Wire Products Labour Union. Mr Pandey, who is an executive committee member of the Indian National Trade Union Congress (Intuc), has been trying for some time now to find an end to the ISWP imbroglio.