Fixed depositors of Morepen Laboratories can keep
their fingers crossed while waiting for the courier to
deliver their matured fixed deposit cheques.
the New Delhi-based company has been defaulting on payment
of matured fixed deposits since February 2003. Further,
the company''s interest warrants are bouncing back to the
depositors like rubber balls.
Khandelwal, vice president (finance), says: "It''s
true that there were few occasions when fixed deposit
repayments as well as interest warrants were returned
by one of our banks for want of sufficient funds. This
had happened primarily due to delayed high value clearing
and few technical delays in transfer of funds to the respective
According to him the issue has been completely addressed
and there is no outstanding on this account while the
issue of fixed deposit repayments are being addressed
to on a day-to-day basis. Even most of this stands cleared
as of now.
January 2003, when Morepen''s interest warrants were dishonoured
by ICICI Bank, the company switched its account to Corporation
Bank (See ).
many investors got worried about the non-receipt of deposit
proceeds upon maturity or any related communication, Khandelwal
insists that Morepen has been communicating with its investors
to minimise the complaints on this account.
is learnt that the company held an investors'' meet in
Mumbai recently and plans to have similar ones in Ahmedabad,
Chennai and Bangalore.
to Khandelwal, the company''s cash projections went off
the track as the price of its main product, Loratadine,
went down by more than 70 per cent after it became an
over-the-counter (OTC) product.
February 2003 Morepen announced that it would generate
around Rs 100 crore and an additional net profit of Rs
60 crore from Loratadine supplies to Geneva Pharmaceuticals,
the generic arm of Novartis AG.
have a very strong order position as of now for Loratadine
as well as few of our other block buster bulk drugs and
expect a good market share in the near future, particularly
in the free market," he says.
the proceeds of the Rs 72.5-crore global depository receipts
issue on the Luxembourg Stock Exchange, Khandelwal says
the statutory requirements for transfer of GDR proceeds
to India is expected to be over by this month end.
also see : ICICI
Bank creates scare amidst Morepen Lab depositors