ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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INDROL-Stepping into Jellies

their different systems'"(emphasis added). This reference to systems must have been sweet music to Soviet ears. It is indeed rare that the Chinese analyse the world situation in terms of systems. Huan Xiang has signalled that the Chinese recognise once again after a long time indeed that the Soviet- American conflict is one of the systems. His reference to the "competition of national strength" must therefore be seen in the context of the conflict of systems. Even the Vietnamese would find it dif- COMPANIES KIRLOSKAR OIL ENGINES Robots under Design on Board KIRLOSKAR OII ENGINES, which experienced a severe setback in its performance in the preceding year, has reported only a small improvement during 1986-87 although the management had raised hopes of a spectacular turnaround in the company's working. With increase in sales from previous year's Rs 65.21 crore to an all-time high of Rs 88.46 crore, the company has made a gross profit of Rs 69 lakh against a trading loss of Rs 163 lakh. After depreciation, there is a fresh net loss of Rs 1.59 crore against Rs 3.43 crore previously. Dividends on preference and equity shares have been skipped once again. This outcome is attributed to adverse factors like the impact of the devaluation of the rupee, especially in case of Germany and Japan from where imports of certain components for large W, WV and Pielstick engines take place. It is stated that abnormal cost push with the cascading effect of customs duty could not be absorbed by the market. Moreover, there was a loss of business of about Rs 3.5 crore due to labour trouble at one of the major customers unit. The directors say that to overcome the situation the company has already undertaken various cost reduction measures and is also concentrating on indigenous programme to minimise imports. The impact of these measures would be felt in the current year. The implementation of the fuel injection equipment project has been withheld due to substantial increase in cost during the five-year period that has elapsed between its initiation and final government approval. The letter of intent for the pipe handling tools project has been converted into industrial licence. This is an import substitution item for which initial order has been received from ONGC. Having received the letter of intent from the central government for the factory automation and material handling sys- ficult to argue that Huan Xiang's preference would be for a Reagan-Thatcherite system. They will have to grant that the Chinese system, particularly today, is not very different from the Soviet one in its essence and thrust. Huan Xiang has thus signalled where his sympathies lie. The Vietnamese will now have to sort all this out just as they had to sort out some other signals in 1971-72. In the meanwhile Gorbachev and Shevardnadze must have concluded that summit or no summit the news from Beijing is not bad after all.

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