The profit making turned ailing state undertaking has been suffering huge losses every year for the last two decades due to mismanagement. [break]
The company was one of the biggest tax payers during its heydays.
The company-- the producer of Yak, Gaida and Deurali cigarette -- is facing sharp rise in loss volume due to continued fall in capacity utilization for the last six years.
The Janakpur-based company had utilized 91 percent of its capacity by producing 2.36 billion sticks of cigarette in the fiscal year 2004/05 followed by steep fall to 83 percent and 60 percent in 2005/06 and 2006/07 respectively.
The company had utilized 53 percent, 49 percent and 17 percent of its installed capacity during the fiscal year 2007/08, 2008/09 and 2009/10 respectively.
Number of workers employed in the five decade-old company has also dropped to 936 from 3,400 some 15 years back with financial condition of the factory deteriorating every passing year.
Madan Thakur, president of Nepal Factory Workers´ Association Janakpur said lack of vision among managerial officials and the government´s apathy led the company to the brink of collapse.
JCF has sold off more than six ropanis of land located at New Baneshwar to Citizen Investment Trust for Rs 722 million to repay outstanding loans and other dues.
The cash-strapped company has paid insurance premium amounting to Rs 150 million out of Rs 200 million received as first installment for the sale of the land whereas the remaining Rs 50 million will be used to clear the dues to the employees, according to management sources.
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