BIFR pulls up Alpha Springs promoters

NEW DELHI, MAR 20: The Board for Industrial and Financial Reconstruction BIFR has turned down the application of Alpha Springs Ltd seeking to be declared a sick company as quot;non-maintainablequot; on account of irregularities in the balancesheet.

The decision comes in the wake of report submitted by Canara Bank, the operating agency, and Special Investigative Audit SIA conducted by auditors which revealed that Alpha Springs had made a deliberate attempt to record cash losses.

SIA had revealed that the if all the relevant transactions which had been attempetd to show cash losses are excluded, the company8217;s networth would be positive by over Rs one crore.

Earlier, the bench had reserved its decision on declaring the company sick and had ordered an SIA following allegations of manipulation of accounts from the creditors. The auditing agency was asked to reconstruct the balancesheet on the basis of which sickness was claimed by Alpha Springs.