India Radiators Limited (“The Company”) was incorporated on 05 January, 1949. The Company made profits upto 1997, thereafter from 1998, it incurred losses. The net worth of the Company became negative as on September 1999. It was declared Sick by BIFR as per section 3(1) (o) of the Sick Companies (Special Provisions) Act, 1985 during July 2000. The Draft Rehabilitation Scheme (DRS) filed by the Company under Sick Industrial Companies Act of 1985 (SICA) was under consideration of Board for Industrial and Financial Reconstruction (BIFR) till the Act was repealed in 2016.
The Company identified an investor to infuse funds in the Company for settlement to workers, Statutory Authorities, Banks and other Financial Institutions. The Company has become subsidiary of Mercantile Ventures Limited pursuant to the second proviso to section 47 of the Companies Act, 2013.
The Company operates from two places: Chennai and Pondicherry. There are no operations taking place at Chennai. The Pondicherry unit is currently confined to job works. The operational expenses are being funded by the new investor.