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

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Bugged by SEBs

Bugged by SEBs Hansavivek ALUMINIUM INDUSTRIES (ALIND) has suffered a severe setback during 1982-83 when it incurred a trading loss of Rs 195 lakh as against a gross profit of Rs 264 lakh in the previous year. These figures have been arrived at after providing Rs 348 lakh for interest against Rs 277 lakh and Rs 490 lakh for wages against Rs 459 lakh. After making necessary provisions, there is a net loss of Rs 235 lakh against a net profit of Rs 128 lakh previously. Part of the loss is set off against general reserve of Rs 118 lakh and balance loss of Rs 120 lakh has been carried forward. No dividend is recommended. Last year, the company had paid 15 per cent on equity capital. Production of conductors at 10,043 tonnes (11,283 tonnes) was almost maintained, but reluctance of State Electricity Boards to lift supplies against confirmed orders because of their financial stringency, forced the company to carry a large inventory in stock. Moreover, severe competition in market coupled with very sluggish tendering activity of SEBs caused a steep fall of as much as 15 per cent in prices of conductors and operations of the division brought a substantial loss. Market for insulated wires and underground cables too continued to be sluggish. Production of steel produces division was also lower at 6,603 tonnes against 8,282 tonnes previously consequent upon sluggishness in demand from conductor industry. Switchgear division could improve its production from Rs 340 lakh to Rs 426 lakh, but production in the machinery division was affected by demand recession in conductor and cable industry. Material handling division executed contract worth Rs 172 lakh against Rs 101 lakh previously. Export division achieved exports of Rs 512 lakh (exclusive of IDA contracts) compared to Rs 376 lakh last year. Production of static relays division was Rs 23 lakh.

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