In the Capital Market

of confectionery lines, leading up to an extensive and complete album of food products. The company has turned in good working results for the year ended November 30, 1986. It earned a gross profit of Rs 12.58 crore against Rs 15 crore in the preceding 17-month period following sales of Rs 151.48 crore against Rs 182.13 crore. These figures show a small rise in profit margins. With both depreciation and taxation claiming less, net profit has turned out to be higher at Rs 7.36 crore compared to Rs 7.12 crore previously. Dividend has been lowered by 3 points to 27 per cent and is covered 3.09 times by earnings as against 2.70 times previously. The directors have also recommended issue of bonus shares in the proportion of 2 shares for every 5 shares held by capitalising Rs 3.54 crore out of the reserves. The proposal, which is subject to the central government's approval, will increase the company's equity capital to Rs 12.38 crore. During the year, biscuit production was maintained at satisfactory levels at all manufacturing units. Bread production increased by 15.2 per cent with the restoration of cordial industrial relations in Delhi as well as improved operating efficiencies. Exports during the year at Rs 29.50 crore represented a 30.6 per cent increase over the previous year on an annualised basis. The company's exports continue to consist primarily of cashew kernels and frozen shrimps, but product range expansion is being actively pursued. J M Rajan Filial, chairman, advocates extension of the scheme for broad banding of industrial licences to the food processing industry, so that larger companies may be able to utilise their expertise and capability to maximise production facilities in the con- text of seasonal variations and changing patrons of consumer preference. He has also urged the removal of price control on bread in Delhi.