Yashovardhan (Yash) Birla, chairman of the Rs 3,000-crore Yash Birla Group with 18 companies, looks much younger than other 45-year olds.
Mostly seen at Page 3 parties with a fashionable outlook and rippling muscles, the younger-looking Birla does not hesitate in flaunting his unique style even at business meetings. However, he is proving to be one of the best examples of ‘brains with brawn’.
The economic slowdown and its impact on corporate performance is now beginning to hurt investors who have trusted their money to unsecured fixed deposits of a clutch of companies. Investors are writing to us to complain that they are not getting back their maturity proceeds from two Yash Birla Group companies, Zenith Birla (India) and Birla Power Solutions.
The Yash Birla Group of companies has been struggling, if the share price is anything to go by, none of the Yash Birla Group companies are quoting at double digits. Out of the eight companies, all but one gave negative returns since 1 March 2013. Is there trouble for the group that the shareholders do not know about?
According to the annual report, Birla Power Solutions not only did not issue fixed deposit receipts but the auditors also discovered there was a shortfall in liquid assets too. More pertinently, the auditors also discovered tax arrears with respect to dividend distribution tax and sales tax. However, the company admitted that the financial crunch made it more difficult to bridge the shortfall and pay taxes. It said, â€œThe company could not pay the dividend distribution tax of Rs261.54 lakh and the arrears of sales tax due of Rs23.64 lakh due to severe financial crunch. The company will pay these dues as soon as the financial position improves.â€ Similarly, it could not bridge shortfall of Rs9.31 lakh due to poor economy. (Source: MoneyLife)