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Elnet Tech begins to pick itself up

As a first step in the cleanup operation, the audited resulted for the year ended March 1997 will reflect the true state of affairs. All irregularities in the company's accounts would be set right.

The committee is now negotiating with the financial institutions for a rescheduling of loans and interest rates. Dues to FIs including defaulted interest today stands at about Rs 70 million. The company has asked for a one year moratorium for repayment of interest and principal.

It has also appealed that the rate on defaulted interest payments be brought down to 20 per cent from 22.5 per cent as was agreed by Chettiar.

A highly-placed source, closely involved with the cleanup operation, is reported to have said that the new management will strive to bring about transparency, cut out luxury, ensure that payments are made with proper approvals and render quality service to the customers.

About 10,000 shareholders of Elnet Technologies Limited, who were totally confounded by the recent bizarre developments in the company, will soon be taken into confidence.

To bring about total transparency, the committee has decided to call for an extraordinary general meeting.

The objective of the EGM is to present to the shareholders a complete picture of the alleged frauds that were committed by Thiagaraja Chettiar, the company's disgraced managing director and co-promoter.

It will also outline the turnaround plans drawn up by the management committee. No resolutions are to be passed.

- Compiled from the Indian media

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