Millennium Post

Govt suggests winding up of spices trading corp

:  The government has recommended winding up of loss-making Spices Trading Corporation Ltd (STCL) saying the firm has suffered massive liability of Rs 1,208 crore on account of fraud and it cannot be revived.
The losses of STCL, a wholly-owned subsidiary of State Trading Corporation of India, increased to Rs 271 crore in 2012-13, from Rs 235 crore in 2011-12.
 'The Ministry of Commerce, administrative ministry of STCL, has said STCL is beyond turnaround as it has suffered massive liabilities due to fraud and has bleak prospects of future income,' an official sad. 'Also, the holding company would not like to fund in any form as its liability is limited to its paid up capital,' he said adding therefore, the implementation of turnaround plan is not feasible without arriving at a settlement with the lenders and the only option before it is to wind up the company. PTI
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