Shri Ram Sugar Mills Shutdown From Shrawan 11
July 27, 2020 | Investopaper
Garuda-based Shri Ram Sugar Mills Limited, the largest industry in Rautahat, has been shut down. By publishing the information on behalf of the industry on Sunday, it has been stated that the industry has been closed permanently from Shrawan 11 as per the decision of the industry management. The industry has been shut down permanently since Shrawan 11, citing continuous losses.
The industry, which was established two decades ago, has been in profit for the first few years of operation but has been running at a loss since then. It has incurred a loss of Rs. 2.17 billion by FY 2075/76.
The management has argued that the industry has to close down due to the loss of billions of rupees. There is a problem in paying the salaries of the workers and employees working in the industry.
The mill is not able to pay Rs 320 million to the farmers. Similarly, more than Rs 7 million is yet to be paid to the retired employees.
The mill is in the process of selling the movable and immovable property of the industry to pay the remaining salaries and allowances of the workers and seeking permission from the government for the sale of the property in the name of the company. The management has said that the sugarcane farmers will also be paid by selling the assets of the industry.
