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GRIMCO struggles to dispose of uniforms worth over Rs 1 crore

The Gujarat Rural Industries Marketing Corporation Ltd faces a grim prospect because of its failure to sell uniforms worth Rs 1.24 crore under the Ganvesh scheme even after a lapse of two years.

Written by Tanvir A Siddiqui | Ahmedabad |
February 26, 2009 1:41:13 am

The Gujarat Rural Industries Marketing Corporation Ltd (GRIMCO) faces a grim prospect because of its failure to sell uniforms worth Rs 1.24 crore under the Ganvesh scheme even after a lapse of two years.

The Corporation had undertaken the project to manufacture uniforms for various government agencies and distribute them in 1995 when the Bharatiya Janata Party’s first full-fledged government came to power in the state but the activity was discontinued later because of unknown reasons.

The corporation had obtained a valuation report of the stock unsold from Gujarat Industrial and Technical Consultancy Organisation Ltd (GITCO) in 2006-07 but did not provide for diminution of value of the stock amounting to Rs 59.22 lakh in the books,noted GRIMCO auditors.

At the closure of the scheme,the stock lying unsold was worth Rs 1.24 crore. Its value got diminished over time. In their meeting in 2006,the GRIMCO directors said in their report that the corporation had valued the uniform cloth at a net realizable value.

The corporation has invited tenders for disposal of the unsold uniform cloth. The Board in its 141st meeting held on 9th October,2006 approved it and also sought approval of the finance department.

The corporation’s directors,in their May 2008 report,have said the approval of finance department has been obtained and a chunk of the cloth stock is disposed of as per their instructions.

However,still a large portion of the stock remains unsold as on date. Manager (finance) and company secretary Saurabh Shah said the negotiations were now underway with the state education department for disposing of the cloth to them. He said nearly 40 per cent of the dead stock was sold out so far.

Interestingly,while the sale of the material worth Rs 16 crore by the corporation in 2006-07 showed around 35 per cent jump over the sale of Rs 12 crore in the previous year,the expenses made towards selling and distributing the material have doubled. The expenses which were Rs 16.87 lakh in 2005-06 rose to Rs 35.65 lakh in 2006-07.

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