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

Business NotesSubscribe to Business Notes

Gwalior Rayon Earns More

August 12, 1967 THE distress selling in groundnut and groundnut oil on July 28 did mark the end of the declining trend which had been in progress for quite some time and had brought down the spot quotation for groundnut oil from around Rs 45 to Rs 30 per 10 kg within just two months. The market displayed a distinctly steadier tendency last week. Prices, which had already staged a brisk recovery from their panicky low in the previous week itself, hardened further. Groundnut Bombay bold which had been sold down to Rs 140 a quintal on July 28 was marked up to Rs 176 last week. Groundnut oil improved to Rs 37.50, but later it receded to around Rs 36. Castor futures held firm between Rs 137 and Rs 138 and castor oil (Commercial) was steadier around Rs 27.75.

TELCO s Impressive Growth

into certain priority sectors like exports, engineering industries, small-scale industries and agricul- tural inputs on easier terms is a pointer in that direction. The stock market appears to be considerably impresaed by the Reserve Bank's open market operations. The Bank's entry into the market as a buyer for a number of securities at sub- stantially higher than the prevail- ing market prices has been interpreted to indicate the possibility of a reduction in the Bank Rate in the not-distant future. The stock market's optimism in this regard may prove to be misplaced. That a reduction in the Bank Rate can provide a boost to the stock market's morale will, however, be conceded, the severe limitations of monetary policy in the Indian economy notwithstanding.

Setback for Indian Iron

has suffered a sharp setback in its working during the year ended March 31, 1967. The preliminary figures released by the Com- pany along with the dividend announcement indicate that the gross profit has come down by 28.6 per cent from Rs 14.27 crores to Rs 10.19 crores during the year. The gross profit had come down from Rs 15.91 crores to Rs 14.27 crores in 1965- 66. The provision for depreciation is higher at Rs 4.49 crores compared to Rs 4.41 crores in the previous year. The pre-tax profit has thus declined to Rs 5.70 crores from Rs 9.86 crores. The provision for taxation is lower at Rs 1.68 crores against Rs 4.31 crores. The net profit has thus come down to Rs 4.02 crores from Rs 5.55 crores, a fall of 28 per cent. The directors have transferred Rs 1.73 crores (Rs 3.26 crores) to reserves.

Excellent Prospect for Larsen and Toubro

 curb and larger consumption of cottonseed oil and imported soyabean oil and sunflower oil this season. Besides, larger imports of mutton tallow have also affected the demand for groundnut oil by the soap industry. With a further large quantity of soyabean oil reaching the country in October-November, it is hardly surprising that the prospect of a good groundnut crop because of the ideal weather conditions so far should have imparted a distinctly bearish tendency to the market.

Unit Trust Maintains Progress

nounced a dividend of 7 per cent to the unit holders for the year ended June 30, 1967, the same as was paid for 1965-66. Since dividend income from units up to Rs 1,000 is free from income-tax, irrespective of the other income of the unit holder, the gross dividend works out to 8.97 per cent per annum, where tax is deducted at the standard rate.

Imperial Tobacco

nounced a dividend of 7 per cent to the unit holders for the year ended June 30, 1967, the same as was paid for 1965-66. Since dividend income from units up to Rs 1,000 is free from income-tax, irrespective of the other income of the unit holder, the gross dividend works out to 8.97 per cent per annum, where tax is deducted at the standard rate.

TOMCO Issues Rights Shares

flationary pressures notwithstanding. Economic difficulties have begun to show themselves in increasing labour unrest. The stock market continues to present a gloomy look. Rarely, if ever at all, has the market found itself in such a helpless position. Never has activity sunk to a level when the vast majority of sotck- brokers find themselves unable to make both ends meet. The fortunes of the stock exchange community have continued to decline despite the tremendous growth of the corp- THE Tata Oil Mills Company proposes to issue fresh capital of Rs 91.06 lakhs. Of this 2,24,240 equity shares of Rs 25 each will be issued at par as rights shares to the existing shareholders in the ratio of two new shares for every five shares held and 35,000 9.3 per cent cumulative redeemable preference shares of Rs 100 each will be issued to the public by prospectus. The Company has received a no-objection certificate for these proposals from the Controller of Capital Issues. The new equity shares will rank for dividend that may be declared for the current year ending

Bonus Issue by Calico Mills

YET another week has gone by but Dalai Street is still undecided about its next important move. Even the speculators' favourites have been drifting idly in a very narrow range. Business has dwindled to a mere trickle. It appears as if bulls and bears have come to terms

A Bad Year for Tata Steel

ket for caster oil through adequate incentive and if need be the foreign exchage earnings can be utilised to import cheaper edible oils., This We help check the malpractice of without affecting the total availability of vegetable oils STOCK EXCHANGE Unrelieved Gloom IT has been another week of indecisive trading on the stock market which continues to present a picture of unrelieved gloom. Though sellers have not been aggressive, bulls have become very cautious In lending fresh support and their interest is confined to a few speculative counters only. The bear-bull tussle has lost most of its excitement because the outside public is simply not will- ing to risk their savings on the stock exchange as there are far too many imponderables involved in assessing the outlook for equities. Price movements have been confined within narrow limits and the undertone has been distinctly subdued.

Synthetics and Chemicals

Synthetics and Chemicals SYNTHETICS AND CHEMICALS is trying to get out of the woods. Against an installed capacity of 30,000 tonnes of synaprene rubbers per annum, the Company was able to produce only 15,589 tonnes in 1966, mainly because of the closure of the plant for the first five months of 1966 following an accidental fire in December 1965, Production could be resumed only in June 1966, and the record production of 2,798 tonnes was achieved in November

Digvijay Cement s Results Satisfactory

break of war between Israel and the UAR on Monday sent a tremor through the stock market and it was forced to beat a hasty 'retreat under pressure of anxious bull liquidation and bear selling. Nearly all the active counters, with a few notable exceptions, recorded new low levels for the year. Short covering and some selected replacement buying induced partly by technical considerations and partly by the Security Council's unanimous call for a cease-fire imparted a steadier tendency to the market, with a number of shares recovering most of the ground lost in Monday's hasty decline.

Dalmia Cement

for many years. A year ago, on the eve of devaluation, linseed oil was quoted around Rs 3,000 and cantor oil around Rs 2,500. Groundnut "oil had shot up from Rs 4,500 in June last to Rs 5,575 by August, but it is down again around Rs 4,500 per tonne, thanks to large imports of edible oils. , Not very many years ago, India was an important exporter of vege table oils and its groundnut oil and castor oil figured prominently in world markets. But today the country is a net importer of oils, Production of vegetable oils has con- tinued to lag far behind the country's expanding requirements and the gap between supply and demand is reflected in the persistent rise in oilseeds and oil prices in the country. How high Indian prices have risen will be evident from the fact that, against the world price of


Back to Top