Amid rising losses, Mother Dairy comes out with VRS scheme

At a time when the nation is dealing with its worst well being disaster and governments and organisations wish to present help to residents and workers respectively, Mother Dairy Fruit & Vegetable Pvt Limited — a completely owned subsidiary of National Dairy Development Board — has introduced a voluntary retirement scheme for its workers, providing a most of Rs 20 lakh to eligible workers.
The VRS scheme introduced for MDFVPL’s Patparganj, New Delhi unit, is obtainable for eligible workers until May 31. It has been introduced in by the brand new administration that has just lately taken cost of the corporate. While Manish Bandlish took cost because the managing director of MDFVPL in March 2021, Varsha Joshi, joint secretary, Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry & Dairying, authorities of India, took over because the chairperson of the NDDB on December 1, 2020.
Emails despatched to the corporate concerning the scheme didn’t elicit any response.
Many throughout the firm are elevating considerations over the VRS scheme and its timing. A senior official with MDFVPL who didn’t want to be named stated, “The timing of the scheme is not right and while it is a voluntary scheme, the management has set a target to reduce the headcount by around 200 employees. In the current environment, the uncertainty created by Covid will greatly hamper the employees’ efforts to secure alternative employment.”
The VRS scheme additionally comes within the backdrop of losses reported by the corporate over the past two years. While MDFVPL reported a lack of Rs 142 crore within the year-ended March 31, 2019, it reported lack of Rs 249 crore within the year-ended March 31, 2020.
Sources near the event say the losses have been on varied accounts, together with investments in IL&FS in 2018-19 that weren’t honoured by IL&FS. MDFVPL had invested Rs 190.84 crore in inter-corporate deposits of IL&FS in August 2018 and IL&FS had defaulted on these investments.
In the notes to accounts for monetary yr 2018-19, it’s talked about, inter-alia, that “because of elevated credit score danger in relation to excellent balances from IL&FS and the uncertainty prevailing because of the proceedings pending with the NCLT, administration has supplied for full quantity of
Rs 190.85 crore yr ended thirty first March, 2019. The identical has been disclosed as an distinctive merchandise within the outcomes. The firm, nonetheless continues to watch the developments on this matter carefully as extra info/consequence to the decision plan of IL&FS turns into obtainable and is dedicated to take applicable authorized motion that could be crucial to make sure full recoverability”.