ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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No Crutches

No Crutches Hansavivek GREAT EASTERN SHIPPING has earned the distinction of improving its profit substantially during 1985-86 although almost every shipping company both internationally and in India faced a near-crisis situation. Its operating earnings amounted to Rs 81.09 crore against Rs 65.88 crore in the previous year and other income was Rs 2.42 crore against Rs 2.14 crore. The year's outcome resulted in a gross profit of Rs 24 crore against Rs 15.15 crore and net profit of Rs 7.08 crore against Rs 1.90 crore. Dividend has been stepped up from 7 per cent to 12 per cent on the increased capital. The shares, compulsorily converted from bonds, are entitled to pro rata distribution. Earnings cover for the dividend has been enlarged from 1.06 times to 1.91 times.

Impressive Turn Round

Impressive Turn Round Hansavivek MUKAND IRON AND STEEL WORKS has staged an impressive turn round in its performance during 1985-86 and has returned to the dividend list after an absence of two years. Gross profit has soared to an all-time high figure of Rs 10.29 crore from previous year's mere Rs 14 lakh following increase in sales from Rs 115 crore to Rs 214 crore. These figures reflect a substantial widening of profit margins. After depreciation, there is a net profit of Rs 5.08 crore against a net loss of Rs 3.90 crore The recommended distribution on the capita] enlarged by conversion of debentures is covered 4.80 times by earnings.

Hurt by Imports

Hurt by Imports Hansavivek COLOUR CHEM hats experienced a decline in profit margins despite higher sales during 1985-86. This, according to the directors, was due to the depressed market conditions, stiff business competition and increasing costs of operations. The company earned a gross profit of Rs 4.87 crore against Rs 4.80 crore in the previous year following a turnover of Rs 56.36 crore against Rs 52.94 crore. Net profit came to Rs 1.45 crore against Rs 1.30 crore and dividend raised by 2 points to 14 per cent was covered 1.30 times by earnings as against 1.21 times previously.

Bhopal s Lone Survivor

Bhopal's Lone Survivor Hansavivek UNION CARBIDE INDIA faced as many as 2,898 law suits in the Court of District Judge, Bhopal, with total value of claims amounting to Rs 161.6 crore besides a representative suit claiming Rs 1,250 crore filed against it and the parent company, Union Carbide Corporation, USA. In terms of the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985, Government of India applied for being added as co-plaintiff. All these suits have been consolidated and stayed by the District Judge, Bhopal, on December 31, 1985. In the 16 suits filed against the US company in the US, one was dismissed and 13 were transferred to the Southern District Court in New York, while two suits are still pending in the State Courts in the States of Texas and Connecticut. The 13 suits were dismissed by Judge John F Keenan on May 12, 1986 on grounds of forum non convenient. Appeals have been filed against Judge Keenan's judgment before the 2nd Circuit Court of Appeal in The Week's Companies New York. The remaining two suits are still pending in the State Courts in the US and are being contested by the company.

Poised for Growth

October 25, 1986 and reshuffles will take place, the furore will then duly die down, a P T Usha will shine in her lonely splendour, everything else will be restored to status quo ante. There is safety in numbers; our immense numbers will continue to keep us insulated from the consequences of our imcompetence.

Opening New Areas for Growth

Opening New Areas for Growth Hansavivek TATA CHEMICALS has once again produced good working results for the year ended March 1986 with a gross profit of Rs 38.49 crore against Rs 33.09 crore in the previous year following sales of Rs 136.57 crore against Rs 111.51 crore. Net profit is Rs 21.68 crore (Rs 20.97 crore). Dividend is maintained at 25 per cent on the enlarged capital and is covered 3.18 times as against 6,01 times previously. It may be pointed out that the company had made a change in 1984-85 in the method of accounting for interest on borrowings for capital expenditure. The board has decided to revert to the practice consistently followed before 1984-85. Accordingly, the additional interest capitalised in 1984-85 has been written back and will now be accounted for as and when it falls due. As a result of this adjustment, there is no effect on the profits for 1985-86, as an additional transfer of Rs 198 lakh made to the Investment Allowance Reserve and Rs 175.80 lakh transferred to general reserve number 2 have become free and have therefore been written back.

Innovations in Power

September 20-27, 1986 Acharyya would almost invite to be duped in order to prove the point. When tried nearly beyond endurance, he would be caustic, but never malicious or vindictive.

Master Shares from UTI

'Master Shares' from UTI Hansavivek UNIT TRUST OF INDIA has introduced one more instrument to attract the community's savings. On August 28, UTI announced the launching of Mutual Fund Unit Scheme with an offer of five crore 'Master Shares' of Rs 10 each at par. The Master Shares will be put on the market on September 19, and will remain on tap for a month, but the issue may be closed earlier if it is over subscribed. The total notified amount of the Master Share issue is Rs 50 crore with a right to retain subscriptions upto Rs 75 crore.

Turning the Corner

states; Jawaharlal Nehru, in a remarkable volte face, went along, as did the rest of the Congress party: accession to power contributes greatly to charity of thought. By 1948 it was decided that sorry, it was all a misunderstanding, residuary powers in the Union of India will be with the Union, not, as earlier settled, with the states. B R Ambedkar was a decisive man; he did not believe in leaving things vague. In a thundering speech in November 1948 in the Constituent Assembly, he was forthrightness personified in his exposition of the imperial order that was India: "The Drafting Committee wanted to make it clear that though India was to be a federation, the federation was not the result of an agreement by the states to join in a federation. The federation is a union because it is indestructible. Though the country and the people may be divided into different states for convenience of administration, the country is one inte grated whole, its people a single people living under a single imperium derived from a single source." There you are. B R Ambedkar so ordained, and the Constituent Assembly acquiesced: we are a single people under a single imperium derived from a single source. Imperium is Latin for empire. This empire, B R Ambedkar decreed, is not one built on the agreement of the states, it is based, by implication, on force, force "derived from a single source". Under the circumstances, this "single source", who could doubt, could only be the British, who had passed on the baton.

New Flag-Ship

New Flag-Ship Hansavivek GWALIOR RAYON is seeking industrial licences for expansion of its cement plant capacity from one million tonnes to two million tonnes per annum and for manufacture of linear alkyl benzene (LAB). It has also applied for clearances of its projects for caprolactum, diammonium phosphate and acrylonite. Meanwhile, the company has joined as one of the co-promoters in Indo- Gulf Fertilisers and Chemicals Corporation (Indogulf), a Rs 720 crore prestigious project for the manufacture of 1,350 tonnes of ammonia and 2,200 tonnes of urea per day at Jagdishpur in UP The company's investment in the equity capital of Indogulf would be to the extent of 12 per cent of its estimated equity of Rs 165 crore, while PICUP and Gulf Consolidated Company for Services and Industries E C of Bahrain would each have 11 per cent equity participation. Hindustan Aluminium and Indian Rayon would together subscribe to 17 per cent of the equity capital. Idogulf has plans to enter the capital market with an issue of about Rs 81 crore in September 1986. It proposes to reserve a portion of the issue for The Weeks Companies allotment to the shareholders of Gwalior Rayon, Hindalco and Indian Rayon on a preferential basis.

Focus on Cement

course of the fiscal year to cater further 10 their needs. But, clearly, given the resource famine the Union government is afflicted with, its capacity to maintain the defence personnel in reasonable comfort and optimum preparedness is likely to be circumscribed. What is then wrong if the armed forces attempt to be self-sustained, if they engage in some occasional smuggling to augment their resources, smuggling being no longer a proscribed activity? We must of course follow the upright path, but we must also remember that Mahatma Gandhi taught us to be pragmatic too: his life was a celestial essay in pragmatism. So let us be sensible and adopt the Indonesian model. Is the above depiction pure surrealism, little related to actualities? Yes and no. Surrealism, after all, has had an essentially modest beginning, with the telling of tall tales. You keep adding to the tale, the tale turns into a parable, suddenly the parable assumes the garb of a commentary on unfolding events; by the time you arrive at the terminus, reality and fantasy have been rendered interchangeable. In a milieu shot with surrealism, the supposedly fantastic


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