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

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L & T Saga Megalomania in Perspective

Perspective Madan Gopal Jajoo Going by the company's announced plans for using the vast funds raised through the mega issue of debentures, L&T will have in five years' time 70 per cent of its total gross assets in cement manufacture with engineering becoming an appendage Surely, the time has come to consider the L&T saga without the blinkers of the Ambani connection.

War by Proxy

Madan Gopal Jajoo The number of proxies collected by the Ambanis for the L&T extraordinary general meeting has set a record. In view of the possibility of multiple proxies having been given without infringing in law, it is necessary to verify the proxies and weed out the multiple ones. This elementary precaution has assumed significance in this case because it does seem that the cult of booth-capturing is perhaps being extended to corporate disputes.

Restoration of Corporate Monarchy

Restoration of Corporate Monarchy? Madan Gopal Jajoo The charade of corporate democracy, which has been advanced as the justification for handing over Larsen and Toubro to the Ambanis a second time, rests on the chameleon-like acts of the financial institutions, with vital information deliberately withheld from the shareholders.

L&T-CCI Authority Sans Expertise

Controller of Capital issues, an organ of the department of economic affairs, did not think it incongruous that in just six months after its last application was approved L&T was metamorphising from an engineering giant into a development banker. What is the role of control on capital issues if money can be raised for vague purposes and lent out without security or margin?

One Year of Litigation

assumptions about the impact of the Gulf crisis, an estimate for 1990-91 is given in the Table. Two scenarios have been presented, the one assumes an oil import of 26.6 million tonnes (19.5 million tonnes of crude oil and 7.1 million tonnes of products) about the same as in 1989-90 and the second scenario assumes a slightly higher import of 29.6 million tonnes (22.5 million tonnes of crude oil and 7.1 million tonnes of products). The first scenario assumes the average crude oil price for the period August 1990-March 1991 at S32 a barrel and the second scenario has been calculated at a price of $32 a barrel. In both the scenarios, account has been taken of a reduction in imports of Rs 2,500 crore planned by the government, but assumes a 12 per cent increase in non-oil import prices.

L&T AFFAIR-Expediency Masquerading as Principle

Expediency Masquerading as Principle Madan Gopal Jajoo The issues raised by the L&T affair are relevant to the whole corporate structure in the country. In particular, the adoption of expedient measures is no way to deal with hundreds of crores of rupees in a country where capital is deemed to be scarce.

L&T SAGA-No End to Aberrations

to evolve criteria for fixation of minimum wages in all the 40 years which have elapsed, since the Minimum Wages Act 1948 was enacted. In sharp contrast to the West Bengal government has not only evolved a criteria for fixing minimum wages but has been periodically revising them as well. The West Bengal government fixes minimum farm wages on the assumption of (a) consumption of food equivalent to 2,200 calories per unit per day, (b) assumption of three adult consumption units in a family, (c) consumption of 72 yards of clothing per family in a year and (d) an amount equivalent to 25 per cent to cover housing, fuel, light, medical and educational expenses.

L & T AFFAIR-Nominee Directors Onerous Responsibility

now. The Britishers used this method to terrorise the peasantry whose exploitation was the mainstay of their empire. The UP government continues with the method with the difference that the former used to publish the figures of those against whom warrants of arrest were issued and were actually detained. The UP government after giving the figures initially for some years in the annual report of the revenue department soon found the rising figures quite embarrassing and discontinued the practice of publishing them.

L & T Statutory Auditors Responsibility

The many bulwarks erected under law to protect the shareholders' interests crumbled without even token resistance when faced with the Ambanis' grand design in the Larsen & Toubro affair. The auditors of L &T now have the responsibility of conveying to the shareholders their views on the acts of omission and commission by the board of directors of the company. Will they prove equal to the task?

Campaign Starts after War Is Lost

It took the government more than three months to take the first step to extricate Larsen & Toubro from the Ambanis' control because the financial institutions and the Ambanis' protectors in the bureaucracy found all conceivable excuses to delay this step.

The L & T Saga

The L & T Saga Madan Gopal Jajoo In Indian conditions, the task of assessing the past performance and future prospects of companies which approach the public with large share issues must devolve on financial market agencies, most importantly the public sector financial institutions. The L & T case, however, shows the financial institutions' total failure to safeguard the public interest.

Growth of Manufacturing Companies in Japan, 1961 to 1970

 Madan Gopal Jajoo This paper discusses the place of 1,001 listed manufacturing companies in the growth of Japan during 1961-70. The companies are divided, first, into major industry groups and, then, into major products groups. These companies together account for between 30 and 75 per cent of the output of the major industry groups.

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