Articles by Hansavivek

From Textiles to Electronics Hansavivek JAGATJIT COTTON TEXTILE MILLS (JCT) is diversifying into manufacture of polyester staple fibre and colour picture tubes through joint sector companies, in both of which it is participating in the equity capital to the extent of 24 per cent. The polyester project is being implemented in association with Punjab Polyfibres, which has recently received a letter of intent increasing the capacity from 15,000 tonnes to 30,000 tonnes per annum. The project is expected to go on stream by the end of 1987. The directors feel that with the recent substantial reduction in excise duty, the polyester fibre industry will experience a large growth in demand. JCT has entered into a collaboration agreement with Punjab State Industrial Development Corporation for setting up a colour picture tubes project in Punjab for which a letter of intent was issued to Punjab Display Devices, a wholly- owned subsidiary of PSIDC in 1982. The project envisages production of five lakh colour picture tubes per annum. Negotiations are in an advanced stage with Hitachi of Japan. The company currently manufactures picture tubes for black and white TV receivers. Efforts are being made to improve the profitability of the unit by increasing the level of production from the present one lakh to six lakh picture tubes per annum. The directors say in their report that within the limits that might be set by the authorities they would make every possible effort to secure for the shareholders and fixed deposit holders of the company a preferred position to participate in the equity capital of both these projects.

Silver Lining in Shipping Hansavivek GREAT EASTERN SHIPPING COMPANY has shown improved performance during 1984-85 and has returned to the dividend list, after an absence of two years, with a 7 per cent distribution. Although operating earnings marginally lower at Rs 65.88 crore against Rs 66.49 crore in the previous year, gross profit increased from Rs 8.38 crore to Rs 15.16 crore. After providing for depreciation, there was a net profit of Rs 190 lakh against a net loss of Rs 428 lakh. The pro- posed dividend is just covered by net earnings. What is more significant is that the company was able to generate adequate cash to make all repayments of instalments due on its loans and also pay a modest dividend. Commenting on the future outlook the directors observe that although the international shipping scene has been very weak some long-term improvements are now beginning to take place. Both banks and shipowners are taking a realistic view of the future and have stopped needless expansion. The result is increased rate of scrapping and yards have very few new orders on hand.

Gainful Nursing Hansavivek SHREE SYNTHETICS proposes to amalgamate Bengal Paper Mill Company (BPM), a sick unit with an installed capacity of 45,000 tonnes per annum and lying closed for some time past, with it. A rehabilitation- cum-modernisation scheme involving a capital expenditure of Rs 14 crore is under consideration of financial institutions and banks. On its revival, BPM expects to get certain financial concessions and monetary benefits from the Central and state governments and banks. Meanwhile, Shree Synthetics will be required to contribute 20 per cent to the cost of the unit's scheme of revival and will also have to provide guarantees to the financial institutions and banks for their financial assistance to BPM. The company expects to get benefits of carried forward losses of BPM aggregating about Rs 11.5 crore under Section 72 A of Income- tax Act.

Accelerated Growth and Diversification Hansavivek RALLIS INDIA has fared so well during the year ended May 1985 that it has more than doubled the equity dividend and the distribution has a thicker earnings cover than last year's. Turnover has amounted to Rs 175.26 crore against Rs 118.12 crore of the preceding nine month-period and gross profit has almost trebled to Rs 6.44 crore from Rs 2.17 crore. Although tax liability has taken away much more and depreciation also claimed a higher provision, net profit has increased from Rs 89 lakh to Rs 295 lakh. The recommended dividend of 22.5 per cent is covered 2.36 times against 1.43 times previously. On completion of the legal formalities for the amalgamation of Protein Products of India with the company with effect from September 1,1983, those shareholders of PPI, who opt for the company's shares in lieu of their holding in PPI, will also be entitled to the interim as well as final dividend for 1984-85. The Agrochemicals division launched'a new product, Fenvalerate, which is a synthetic pyrethroid based on technology deve- The Week's Companies loped by the company's Rand D Centre. The product has been well accepted by the Indian farmers and is recognised 'as a premium quality product in the market. The Engineering division registered increased sales of fans. It has also developed its third party distribution arrangements by extending support for design and quality control. Improved lighter weight double insulated tools were introduced in the market. Manufacturing units of the Pharmaceuticals division are being modernised to update technology and manufacturing procedures.

November 30, 1985 official concerned to pay damages. On April 23, 1982, for instance, Justice Mars- Jones awarded