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Revolution at the Margin

Revolution at the Margin Mahajan WHEN the chairman of the State Bank first mooted the idea of setting up a National Credit Council in his statement to shareholders last year, he could not have visualised the shape that the institution was going to take, Dehejia had made the suggestion in the context of the observation that distribution of credit had not followed plan policies and requirements. The proposed Council was to correct this maldistribution. And as he saw it, the Reserve Bank had no place on the Council.

Policy Reversals

Oilseeds Turn Bearish A DISTINCTLY bearish trend was noticed in the oilseeds market last week, with sellers predominating both in futures and in spot. Although in the forward section there was stray professional support, the resultant firmness could not be sustained as bulges invariably attracted profit-booking. In the event, all the items traded in the market closed the week with a net loss.

To What End

 ted, the wholesalers have reason to feel gratified. However, the consumer resistance at the retail level noticeable for quite some time now, is expected to become even pronounced with the latest price revision.

A Call-Rate Slump

Not Much Store by Policy ALTHOUGH, in the face of a drastic bout of cotton requisitioning, on a near national scale, the cotton market witnessed a near-collapse on the price front, there was still a wide gap between the ruling rates and the official ceiling rates. In the course of his statement in the Lok Sabha last week, the Union Commerce Minister was at great pains to present the cotton situation in its proper perspective. He categorically declared that the Government was determined to intensify its requisitioning drive and to speed up cotton imports with a view to bridging the gap between supply and demand.

The Squeeze May Work

The seasonal credit expansion, which at the Rs 320-crore mark on February 24 was considered by the Reserve Bank to be somewhat more than warranted by the availability of goods touched the Rs 420-crore mark on April 24 without any tangible corresponding improvement in the supply of goods. By March 31—the close of the fiscal year which brings about a rush for tax payments—credit expansion will have crossed the Rs 420-crore mark. And, according to available data, banks, and mainly the State Bank, increased their borrowings from the Reserve Bank by Rs 23 crores to Rs 140 crores during the week ended March 31.

What Makes It a Squeeze

April 1, 1967 proposed a final dividend of 14 per cent for the year. This, together with the interim dividend of 11.33 per cent declared last October, makes a total of 25.33 per cent for the year. The directors had stated at the time of the public issue that the Company would be able to pay a total dividend of 22.5 per cent for 1965-66. Thus, the actual dividend for the year is higher than the forecast made in March, 1966. The Company paid a total dividend of 74 per cent on a smaller capital of Rs 75 lakhs for the previous year. The final dividend of 14 per cent in respect of shares offered to the public in March 1966 works out at Rs 1.05 per fully paid-up share and 63 paise per partly paid-up (Rs 6 paid-up at the close of the year and Rs 8 paid- up now) share. The total dividend for the year on partly paid-up shares works out at Rs 1.14 per share. The Company's gross sales have increased by 17 per cent and crossed the Rs 12-crore mark from the previous year's level of Rs 10.31 crores. Its net profit after taxes and development rebate reserve has improved by 16 per cent to Rs 1.16 crores. The ratio of net profit to gross sales works out at 9.6 per cent for the year, The majority sales have come from the pharmaceutical side, though all product groups are reported to have contributed towards the higher turnover. On a comparative basis, animal health and agricultural products have recorded a maximum growth rate of 65 per cent. Work on the Company's new projects at the Trans-Thana Creek industrial area is progressing according to schedule. Work on the new expanded facilities for the manufacture of Trotinex' a well balanced protein-vitamin combination, is now complete and production and packaging have commenced.

Expansion Continues

The expansion cost of Rs 111 lakhs will be met by the present capital issue of Rs 73.40 lakhs and a loan of Rs 37.50 lakhs from the Sperry Rand Corporation.

Call Rate Hits Record High

Call Rate Hits Record High The CLOSE of February marked the emergency of tight conditions, not unexpectedly, and the end of the stable six per cent call rate, which had been poised for a rise even before mid-February. What ushered in the tight conditions and triggered off the climb in the inter-bank call rate in Bombay was the final advance quarterly payments of income tax on March 1. By March 4, the call rate had touched a record high of 10 per cent, at which level it has since been sustained.

Soaring Credit

February 25, 1967 Company to pay a dividend of 16 per cent for the current year on the enlarged capital of Rs 54 lakhs. The Company had paid a dividend of J 6 per cent in respect of 1964-65.

A Close Watch

February 18, 1967 the firm trading conditions both in the spot and the forward markets. Even the reported move on the part of the Government to secure a large quantity of soyabean oil from America failed to impart any bearish slant to the price trend.

Who Is Using the Credit

Linseed April contract which opened the week at Rs 167.50 attracted very little attention during the course of the week and after declining to Rs 165.50 closed a shade higher at Rs 166.50. In the same way Castor April also moved within a narrow groove and closed a rupee higher than the lowest level for the week at Rs 144.37.

Tight at Last

FMC Holds Oilseeds in Leash FOR THE FIRST time in several weeks the oilseeds market presented a distinctly bearish trend, the extent of the fall in prices being more pronounced in the spot than in futures, where the volume of transactions has been considerably reduced. In fact, trading conditions last week reflected the first signs of the impact of the actions taken by the Forward Markets' Commission to hold the priceline in oilseeds.


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