Is Mercedes Benz potentially sick?
NEW DELHI, Dec 23 (PTI) Mercedes Benz India, a subsidiary of automobile giant Daimler Chrysler, has become potentially sick with erosion of over 50 per cent of its networth, but its officials say the company has a long-term commitment towards India. The company has notified the Board for Industrial and Financial Reconstruction (BIFR) about its financial condition as per the Sick Industrial Companies Act (SICA) provisions. Mercedes Benz India made the reference to BIFR after the company s accumulated losses rose to Rs 336 crore compared to equity capital of Rs 600 crore as on March 31, 1999. Confirming the development, MBIL General Manager (Corporate Affairs) Suhas Kadlaskar told PTI from Pune that the reference to BIFR has been made only on technical grounds to ensure compliance of legal regulations. The financial condition of the company is very healthy and Daimler Chrysler AG had a long-term commitment towards India, Kadlaskar said, adding that the company had posted a net profit of
