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

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Pinch of Price Control

Pinch of Price Control Hansavivek CYANAMID INDIA has experienced contraction of margins despite increase in turnover, Gross profit has slipped from Rs 4.94 crores to Rs 4.44 crores, although net sales have been Rs 19.58 crores against Rs 18.25 crores in the previous year. Net profit is also lower at Rs 1.54 crores (Rs 1.75 crores). Dividend, reduced from 55 per cent to 30 per cent on substantially increased capital, is just covered by earnings. Sales of agricultural products maintained an upward trend with malathion and its formulations and Thimet 10G recording major gains. But turnover of the pharmaceutical division stagnated at previous year's level in spite of increase in unit sales. This is attributed to the limiting effects of the Drugs (Prices Control) Order, Increases in costs of raw materials and utilities had to be borne by the company, as prices could not be increased due to government's reluctance to revise prices upwards. The company is implementing its project of establishing an organophosphate plant and expects to commence trial runs by the end of this year. The company has also been issued an industrial licence for 25 tonnes of abate, which will be manufactured in the organophosphate plant. Its application for setting up a fine chemicals plant is still pending with government. With the withdrawal of general exemption from industrial licensing for certain formulations based on bulk drug produced by licensed manufacturers, the company is seeking a licence to carry on business for the products involved. The first phase of the new research and development laboratory, approved by the department of Science and Technology, was commissioned last year and the second phase is expected to be ready soon. American Cyanamid and Atul Products had offered for sale 6,83,924 equity shares of Rs 10 each at a premium of Rs 12 pef share to the Indian public and company's employees to reduce the non-resident interest in the Indian company from 65 per cent to 55 per cent and that of Atul from 35 per cent to 30 per cent. The public issue was oversubscribed 73 times. With the reduction of Atul's shareholding in the company, the interconnection with Atul has been severed. The company has made an application to the government for deregistration under MRTP Act.

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