Mumbai-based JIK Industries — a firm making crystal glass — has rescheduled part of its fixed deposits for as long as seven years and asked investors to forget the rest.The company — which defaulted on repayment — says it will refund 15 per cent of principal at the end of fifth year, another 15 per cent in the sixth year and 20 per cent by the seventh year. There is no reschedulement for the rest. The company’s other option is to convert the loans into Re 1 shares at a premium of Rs 2 even though all its operations are being closed down.JIK has over 3,000 small investors who deposited Rs 15 crore with the company.The company informed the stock exchanges that following directions of the Bombay High Court, a meeting of the equity shareholders, unsecured creditors, non-convertible debenture holders and fixed deposit holders will be held on June 25 for rescheudulement of the fixed deposits and loans. ‘‘We oppose this seven-year reschedulement as small investors will be hardest hit,’’ says Shyam Ahuja, secretary of Mumbai Depositors and Finance Brokers Association. ’’ What is the guarantee that this company will be in existence five years from now,’’ he asks. ‘‘The company should sell its assets to pay off the small investors,’’ he said.When contacted, a JIK official said due to a fire in the company’s plant, its operations were hit. ‘‘We have called a meeting in Thane as per the court direction,’’ the official in-charge of fixed deposits said on conditions of anonymity. The company’s shares are rarely traded on the BSE and as per latest filings with the BSE, the company made a loss of Rs 71 lakh on net sales of Rs 4.6 lakh for the quarter ended March 2005.
