Document Fragment View

Matching Fragments

It also transpires from the record that the net worth of the company is positive'in the year 2001-2002, which is approximately Rs. 13.45 crores and the same is deemed to be sufficient. The loss in the year 2001-2002 is due to decrease in turnover and increase in cost of depreciation and administrative expenses.

As such mere profit is not the indicator of financial soundness of any firm, whereas the next worth of the company has been considered as more prudent, criteria."

4. Counsel for the petitioner submitted that 4th respondent having incurred a loss of Rs. 117.03 lacs in the year 2001-02, cannot claim that it fulfils the criteria of a profit earning Company at least from last 3 years, but such submission cannot be accepted as from the last 3 years record, it is evident that the company has total profit of about Rs. 13.45 crores, as stated by J.S.E.B. and such in the tender evaluation and recommendation made by MECON Ltd., Ranchi, circulated vide letter dated 28th Mardh, 2003. It has been made clear that the 4th respondent earned profit of Rs. 133.32 lakhs in 1999-2000 and Rs. 126.97 lakhs in 2000-2001 and incurred a loss of Rs. 117.03 lakhs in 2001-2002 but net worth of Company is positive in 2001--2002, which is approximately 13.45 crores and deemed to be sufficient.