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Fuel Efficiency Scores

principle has been made the victim of much contorted dialectical reasoning There have been other who have proclaimed themselves as foot soldiers for democracy, socialism and science have been unable to detach themselves from the how green was the Such ground for the concept of dynastic infallibility Why confine self to Aryavairta alone? Even in states and regions where the ideologically-oriented parties have been traditionaly strong as been done to sharpen the awareness concerning the norms of democratic functioning. It is only when abominations like the Preventive Detention Act or the Notional Security Act reared their head that agitations were launched. Such agitations have always had a compartmental, part-time flavour; they were rarely integrated with the main body of the ideological movement. which is perhaps why organised resistance to the the Emergency was so feeble and episodic. It will always remain a matter of speculation whether the Emergency would not have lasted peacefully for a longer spell had the faux pas over the vasectomy operations not been perpetrated. Or take the recent instance of the amendment to the Indian Postal Act which intends to arm the authorities with absolute power to intercept the mail It was left to the President, despite his being hemmed in by Article 74 of the Constitution, to offer battle to the government on the issue. I his should not have been so. At least one-fourth of the members of the Lok Sabha belong to the opposition; for defending freedom and democracy, this is not a negligible size. If these members showed determination, made enough nuisance of themselves inside the house, brought its proceedings to a halt, the resulting ruckus would have found echoes outside parliament, and the government could have been put on the defensive. But no, fatalism of a queer kind has entered the soul. The state of illor wellbeing of employees engaged by private financial rackets arouses the concern of our members of parliament; they are rightly well versed in the nefarious doings of the Central Intelligence Agency in Nicaragua, but they are somehow unable to mobilise themselves against creeping totalitarianism nearer home.

Low Profits on Electricals

WEST COAST PAPER MILLS has suffered Low Profits on Electricals a sharp setback in its working during 1985-86. Although turnover was only Hansavivek marginally lower at Rs 62.22 crore against VOLTAS has registered a fair recovery in its performance during 1985-86 with a gross profit rising from previous year's Rs 2.44 crore to Rs 6.52 crore following increase in turnover from Rs 252 crore to Rs 273 crore. These figures show considerable improvement in profit margins. Net profit is Rs 3.12 crore against Rs 1.21 crore in the previous year. The directors have barely maintained dividend at 10 per cent which is covered 176 times by earnings as against 1.34 times previously. In view of the large tax claims made on the company the liability for which remains undetermined, the directors have, as a measure of caution, provided Rs 2 crore for contingencies in the accounts.

Diversified Market

Diversified Market Hansavivek BHARAT GEARS has improved its market mix. It has now on its customer list not only manufacturers of commercial vehicles and tractors, but also jeeps, passenger cars (including Maruti and Contessa), defence vehicles, tanks, armoured personnel carriers, oil engines, cooling towers, forklifts, power tillers, heavy earth moving equipment, machine-tools, railways, etc. Meanwhile, the industrial licence to increase the automotive gear manufacturing capacity to 4,000 tonnes is under advanced stage of implementation. It is expected that the installed capacity would be nearly 4,000 tonnes per annum by August next. The furnace division of the company is now well established and expects to execute orders of the value of Rs 2 crore during the current year. The division is now equipped to take on turnkey jobs of setting up complete heat treatment plants and to manufacture most energy conservation type of furnaces. Its contribution to the profitability of the company is quite significant.

Drought Constricts Market

Drought Constricts Market KIRLOSKAR OIL ENGINES has turned in disappointing results for 1985-86 with a trading loss of Rs 1.58 crore against a gross profit of Rs 4.68 crore made last year following decline in a sales from Rs 88.07 crore to Rs 65.20 crore. After depreciation, there is a net loss of Rs 3,44 crore compared to a net profit of Rs 1.65 crore of 1984-85. Equity dividend, which was paid at 12.5 per cent last year, as also the preference dividend have been skipped.

Judicious Blend

Judicious Blend Hansavivek ZENITH, formerly Zenith Steel Pipes and Industries, proposes to maintain its growth through a judicious blend of diversification and rapid expansion of its activities. It expects to receive shortly a letter of intent for manufacture of seamless steel pipes at Khopoli in Maharashtra, aimed at import substitution for the expanding needs of oil, gas and automobile industries. Meanwhile, a letter of intent for producing oil field chemicals, also being imported, has already been received. The company's application for a fully integrated steel plant is still pending with the government awaiting certain policy decisions. Bearing in mind the current state of the cement industry and taking into consideration the "proceed with caution" advice from the financial institutions, the management is re-evaluating the cement project vis-a-vis other opportunities. The company has fared well during 1985-86 with turnover rising from previous year's Rs 124.99 crore to Rs 136 crore and gross profit from Rs 5.60 crore to Rs 6,23 crore. These figures also show a small increase in profit margins. Net profit is Rs 4.02 crore (Rs 3.56 crore). Dividend has been stepped up from 25 per cent to 30 per cent and is covered 1.75 times by earnings as against 2.60 times previously.

Finance for Exports

Finance for Exports ADDRESSING a press conference in Bombay on January 9 to announce the operations of the Export-Import Bank of India during 1986, its chairman and managing director, Kalyan Bannerji, called upon Inclian exporters to reverse the stagnating trend of exports to markets in Western Europe and the US, A number of changes in import policies also provided opportunities to Indian exporters to upgrade technologies and manufacturing processes to produce better quality goods for exports. The World Bank also had sanctioned $ 250 million towards technology upgradation by Indian exporters.

Japanese Connection in Paints

Japanese Connection in Paints Hansavivek GOODLASS NEROLAC PAINTS has turned in better working results for 1985-86. Turnover, profits and margins are all higher compared to the previous year. This outcome has been possible with a change in product mix and control on costs. Gross profit has increased from Rs 2.28 crore to Rs 3.13 crore following rise in sales from Rs 59.62 crore to Rs 68.75 crore. Although tax liability has taken away more, net profit is also higher at Rs 148 lakh against Rs 97 lakh previously. The unchanged dividend of 20 per cent is covered 2.28 times by earnings against 1.50 times.

Two-Wheeler Boom

Two-Wheeler Boom BAJAJ AUTO has shown impressive performance during 1985-86 with substantial increases in production, sales and profits. What is more, the company has planned further expansion to achieve sustained growth in the future. The company produced 3,87,592 scooters against 2,61,111 numbers last year, out of which CKD packs were 75,550 numbers against 58,450 numbers. Similarly, motorcycle production was 42,732 numbers against 30,644 numbers, of which CKD packs were 2,518 numbers against 360 numbers. While the turnover amounted to Rs 353.39 crore against Rs 226.28 crore, gross profit surged ahead from Rs 47.50 crore to Rs 84.83 crore reflecting a jump in profit margins. Although provisions for both depreciation and taxation claimed much more, net profit advanced from Rs 28.63 crore to Rs 38.97 crore. Dividend has been stepped up from 30 per cent to 50 per cent and enjoys a hefty earnings cover of 8.21 times against 10.15 times previously. The company exported 3,244 scooters and 3,005 three-wheelers (including 2,518 CKD packs) and earned foreign exchange equivalent to Rs 6.29 crore as against Rs 2.23 crore previously. It sold 1,03,863 Bajaj-Chetak scooters which were booked against inward remittance of foreign exchange. The amount received in foreign exchange against these sales was equivalent to Rs 62.32 crore. The company also received foreign exchange equivalent to Rs 6 lakh as technical know- how fees from it's licensees abroad. Commercial production of scooters at Waluj in Aurangabad district of Maharashtra had commenced in mid-May 1985 and the 1,00,000th scooter was produced there on August 16, 1986. The plant has now achieved a production range of 1.80 lakh scooters per annum. The company's application for automatic growth of its licensed capacity for the manufacture of CKD packs for supply to Maharashtra Scooters was approved and the licensed capacity for such CKD packs was enhanced from 69,700 numbers to 87,000 numbers per annum.

Accent on Pollution Control

December 27, 1986 but this report shows that what couldn't be done frontally has happened incrementally". How many Indians are aware of this creeping danger? Few indeed.

Public Sector Dynamism

Public Sector Dynamism Hansavivek GUJARAT NARMADA VALLEY FERTILISERS COMPANY (GNFC) has undertaken several expansion and diversification projects and has drawn up a corporate plan of 10 years envisaging investment of Rs 1,800 crore. The licensed capacity of the company's methanol project has been re-endorsed to one lakh tonnes per annum from 20,000 tonnes per annum. The company is taking steps towards establishment of a plant of 80,000 tonnes per annum. Work on 5,000 tonnes per annum formic acid project is in full swing and production is expected to commence in the last quarter of 1987. The company has received a letter of intent for the establishment of plants for annual production of 1,42,500 tonnes each of nitrophosphate and calcium ammonium nitrate and 33,000 tonnes of concentrated nitric acid. These projects, are estimated to cost Rs 217 crore, including Rs 60 crore in foreign exchange. Contracts for the supply of imported equipment and machinery, know-how, engineering services, etc, have been signed with Uhde.

Diversification and Modernisation

Diversification and Modernisation Hansavivek RALLIS INDIA has drawn up a five-year plan for diversification and modernisation involving a capital outlay of over Rs 50 crore. To finance a part of the capital expenditure the board of directors has proposed to raise Rs 19.75 crore by the issue of partly convertible debentures by way of 'rights' According to the proposal, which is subject to the consent of the controller of capital issue, the company will offer for subscription to the existing shareholders two such debentures of Rs 500 each for every three equity shares held. Each debenture will consist of two equal parts

Trapped in Excise Net

Trapped in Excise Net Hansavivek GTC INDUSTRIES sold 16,702 million cigarettes in the year ended June 1986 as against 21,041 million cigarettes in the previous year, a decline of 21 per cent over the year. Sales realisation, however, increased from Rs 92.53 crore to Rs 125.56 crore and other income decreased from Rs 25.88 crore to Rs 18.68 crore. Gross profit was only a shade higher at Rs 4.80 crore (Rs 4.75 crore). These figures reflect deterioration of margins. With taxation claiming more, net profit turned out to be lower at Rs 1.83 crore (Rs 1.97 crore). Dividend has been raised by a point to 23 per cent and is covered 1,60 times as against 1.80 times previously. The decline in sales volume has been attributed to the drastic change in excise duty structure introduced by the government in September 1985. As against the earlier structure where the industry had the flexibility of placing its products in the market at price intervals of Rs 5 per 1,000 cigarettes, the new structure introduced five price segments. Thus, for one of the slabs, viz, price between Rs 61 and Rs 170, the duty is Rs 125. Similarly, The Week's Companies for price between Rs 171 and Rs 300 the amount is Rs 225. To illustrate, the company's Panama Virginia brand with an earlier marked retail price of Rs 90, which had an excise component of Rs 67, had to be priced at Rs 170 with an excise duty component of Rs 125 which comes to an increase in excise duty of 86 per cent. This, according to the directors, has resulted in massive market disturbances resulting in severe setback to the industry.

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