Slow-moving, defective stock raises eyebrows
?SLOW MOVING?, excess, defective and poor quality stock with various showrooms of UP Handloom Corporation has shocked its authorities. They have sought an explanation from all 96 depot managers by June 30, 2006. The orders were issued from the city, which is the headquarters of the Corporation.india Updated: Jun 19, 2006 00:21 IST
‘SLOW MOVING’, excess, defective and poor quality stock with various showrooms of UP Handloom Corporation has shocked its authorities. They have sought an explanation from all 96 depot managers by June 30, 2006. The orders were issued from the city, which is the headquarters of the Corporation.
However, members of the UP Handloom Association suspect foul play by the top management. The employee leaders demanded proper investigation into details of this useless stock and action against the guilty.
According to sources the last auction of defective and rejected stock was conducted in 1996-97. After the auction, the Corporation was left with fresh stock worth Rs 25 crore. Since then there had been no major purchase of items barring a small lot of running items in 2000.
Sources said that out of a total Rs 525.44 lakh slow-moving items held in showrooms all over the country, items worth Rs 224.11 lakh has been labelled as defective.
Taking serious note of the large stock of slow-moving items identified as defective and not worth selling by Corporation deputy general manager NB Singh, he sought an official explanation from all 96 depots all over the country.
Talking to the Hindustan Times, Singh accepted that the quantity of defective items sent by showrooms was very high. Therefore, all depots had been asked to explain the cause for such large quantity of defects in items.
Singh said that after receiving all relevant information from the depots, the team of experts would be routed to all showrooms to find out the actual cause and quantity of defective items.
Whereas, UP Handloom Corporation Association general secretary PC Bhanti alleged that the top management of the Corporation was trying to conduct an auction of better items held with showrooms in category of slow moving items, so that they could earn some amount to show it against the sale to reduce the ongoing pressure of better sale achievements.
Bhanti, cited the example about urgency about the sale achievement and said that recently, the Corporation failed to get the second installment of financial relief worth Rs 5 crore from the Central Government due to poor sales. Within three months, they have improved the sale account and approached the Centre to release the second installment, alleged Bhanti.