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

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Surge Forward

Nishtar THE stock market which presented a somewhat weary look in the previous week was again in high spirits last week. Bulls resumed their offensive and with bears in no mood to put up a fight they had little difficulty in gaining fresh ground. Lyons Range led the way, the generally tense political atmosphere in West Bengal notwithstanding. And what is more, laggards stole the show from speculators' favourites, indicating that bullish fervour is catching on.

Seeds Futures at New Low

February 1, 1969 will never get it, because of the wrong attitude taken up by the Department in the first instance and the unending proceedings which go on in respect of every year's assessment.

FMC Must Act Firmly

FMC Must Act Firmly Nishtar RECENT developments in the Bombay oilseeds market deserve severe censure. It is not just that no solution has yet been found to the payments crisis arising out of large-scale illegal speculative activity in the so-called nontransferable specific delivery contracts in groundnut oil. Perhaps not many will have much sympathy for traders who come to grief on account of indulging in illegal activity; do not smugglers lose heavily when their goods are seized by the customs authorities? And the payments crisis might even prove a blessing in disguise if it deters the assumption of undue risks involved in illegal activity.

Joy Ride

January 18, 1969 duced chlorine. It is claimed that the methyl bromide plant is making products conforming to international standards. Sales increased from Rs 10.45 crores to Rs 11.16 crores but, with gains in production eroded by increased costs, gross profit could look up from Rs 2.57 crores to Rs 2.65 crores. With the addition of non-recurring items, these figures are inflated to Rs 2.86 crores (Rs 2.64 crores), A sum of Rs 21 lakhs added to the 1967-68 accounts represents excise duty on kiln gas for previous years not payable under Supreme Court judgment. And Rs 7 lakhs added in the previous year accounted for assets sold out. Net profit is thus Rs 1.26 crores (Rs 1.12 crores) which covers the unchanged dividend of 17 per cent well over twice. In addition, there is a gift of equity shares in the proportion 3:10. These new shares will rank for dividend from the current year. With a view to meeting the additional requirements of finance, shareholders' approval is being sought for authority to issue debentures upto Rs 2 crores, as and when necessary. The company's application for the fertiliser project submitted over a year ago is still under consideration of Government.

New Peaks, Budget Permitting

New Peaks, Budget Permitting Nishtar THE stock market did well last year and is likely to do still better in 1969. About the middle of February last it had dipped below its 1967 low but by the end of May it had moved beyond the 1967 peak. Few could have imagined that a sick and anaemic market could have taken such a big stride. It did all this in just two stages with a good resting period in-between. The first phase lasting from mid-February to the end of the first week of March was essentially speculative and it reflected mainly a few big speculators' firm belief that the Central Budget would be market-oriented and that there would also be a substantial cut in the Bank rate.

Fun of Ignorance

Fun of Ignorance Nishtar MORARJI Desai is reported (by a financial daily) to have stated in his inaugural address at the diamond jubilee celebrations of the Calcutta Stock Exchange that "If the purchaser dues not pay and the seller does not deliver the shares, the transaction should be treated as null and void". One might have dismissed it as a case of misreporting if Morarji had not made almost similar observations in May last. The occasion then was the laying of the foundation stone of the new building of the Bombay Stock Exchange and what he said, apart from many other ridiculous things, was that "It is wrong for anybody to sell shares when he is not possessing a single share".

Cotton Policy Muddle

lakhs, respectively. Net profit is only a shade better at Rs 6 lakhs and covers the unchanged equity dividend of 13 per cent 1.3 times. In the current year, the company expects to harvest a crop of 9.30 lakh kgs at an estate cost of Rs 2.52 per kg. The company has installed a latex centrifuging machine and its concentrated latex has been found acceptable in the market.

Set for New High

December 7, 1968 NEW INDIA FISHERIES has to pay its Japanese skippers and engineers Rs 10,000 and Rs 8,000 per month as the Japanese Labour Union, of which they are members, insisted on substantial increases in their salaries. The company has repatriated four of them, but it still has 16, each one of whom costs the company on an average over Rs 1 lakh per annum. Efforts are being made at complete Indianisation by 1974. During the year ended March 1968, NIF

Welcome Decline in Cotton Prices

Consortium in Haste Nishtar A GOOD idea hastily implemented can do incalculable harm and even ruin the cause it seeks to promote. This might well come true of the proposed Groundnut Extraction Export Development Association which is scheduled to commence operations from January. This body has been set up mainly for stepping up exports of groundnut ox- tractions to free currency areas. The need for boosting such exports is all too obvious; there has been a very steep decline in exports to West Europe over the years. And the consortium approach has much to commend itself. What is most disturbing is the strategy that has been evolved to achieve the objective.

Consortium in Haste

Consortium in Haste Nishtar A GOOD idea hastily implemented can do incalculable harm and even ruin the cause it seeks to promote. This might well come true of the proposed Groundnut Extraction Export Development Association which is scheduled to commence operations from January. This body has been set up mainly for stepping up exports of groundnut ox- tractions to free currency areas. The need for boosting such exports is all too obvious; there has been a very steep decline in exports to West Europe over the years. And the consortium approach has much to commend itself. What is most disturbing is the strategy that has been evolved to achieve the objective.

Consortium for Oilcake Exports

Consortium for Oilcake Exports Nishtar THE question of how best to increase the total export of oilcakes and at the same time ensure that an increasing proportion of it goes to free currency areas has been engaging the attention of all those who feel concerned about the difficult foreign exchange position. Oilcakes have become the most important export item in the oilseeds category. Recent trends have been causing anxiety. Not only have exports come down from a record 12.39 lakh tonnes in 1964-65 to 7.28 lakh tonnes in 1967-68, the share of West Europe has come down from 46.8 per cent to 24.9 per cent and the share of East Europe has gone up from 45.3 per cent to 73.8 per cent (in terms of quantity), In 1960-61, the share of West Europe stood as high as 83.9 per cent and East Europe took only 16 per cent.

All Set for Cotton Futures

All Set for Cotton Futures THE stage is now well set for the start of hedge trading in cotton. The standing committee of the Cotton Advisory Board has given its final verdict in favour of early resumption of futures trading. It had only been waiting for a clear picture of the new crop. Latest estimates place the crop around 61.50 lakh bales

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