December 22, 1962 THE ECONOMIC WEEKLY

areas of forest ranges for bamboo cipating in the dividend just an- ing Agents' remuneration (Rs 1.97 and, in order to augment. supplies nounced, which has been restricted lakhs as against Rs 96,000) but be­ of raw materials, has started a plan- to the minimum amount which the fore making provision for taxation, tation programme of eucalyptus, Cpmpany has to pay as a private has more than doubled at Rs 26.87 paper mulberry and other species of company. lakhs (Rs 13.11 lakhs). Allocations hardwoods and bamboos Despite the setback in the net made are additional depredation profits from Rs 20.09 lakhs to Rs for 3 years to June 30, 1961, Rs The Company has repaid, during 15.01 lakhs, the Chairman in his 0.43 lakh; provision for taxes, Rs the current year a sum of Its 6 review, is optimistic about the fu­ 15.75 lakhs (Rs 6.05 lakhs); Deve- lakhs as first instalment against its ture outlook of the Company. In lopment Rebate, Reserve, Rs 0 50 borrowings from the Industrial Fi­ addition to large works pending in lakh (Rs 0.50 lakh); and General nance Corporation. Out of 149,993 hand, the Company has secured new Reserve Rs 3.70 lakhs (Rs 0.40 Ordinary shares of Rs 100 each contracts of the value of Rs 12 cro- lakh). Out of the disposable (f p.) in the Company, 75,492 res. Some of the major works balance, the Preference dividend shares are held by Shree Digvijay undertaken will take two to four will absorb Rs 91.575 and the Ordi­ Cement Co. Sikka. as the holding years to complete and yield results, nary dividend which has been step­ company. and hence the Company will be ob­ ped up from 7:5 pc to 28 pc (i e liged to revise its previous policy Rs 2.80 per share of Rs 10) will Gammon of bringing jobs into account only require Rs 5.60 lakhs (Rs 1.50 THE Report and Accounts of after they are completed. However, lakhs) leaving Rs 6,046 for the next Gammon India (converted into the Board considers that since the year- a public limited company in April benefit of the major contracts will The Company has concentrated on 1962) for the year ended March not be available to the Company's production of industrial sheets, 31, 1962 (its fortieth year) reveal accounts for sometime to come, they strips and coils, keeping pace with that the value of contracts comple­ will have to adopt a conservative the demand during the year. The ted by the Company was higher at dividend policy even though they raw material position has remained Rs 432.20 lakhs compared with Rs hope to maintain profits in the unchanged and further allocation 322.58 lakhs in the previous year. coming years. of raw materials is Under considera­ While the works in progress stood The additional capital will be tion of Government. The Company, lowr at Rs 558,56 lakhs (Rs 570.09 helpful to the Company to acquire having carried out considerable lakhs). The Gross Profit before equipment of new plants and to re­ research and experiments with fa­ providing depreciation has receded habilitate the existing plants with vourable results, intends manufac­ to Rs 4146 lakhs from Rs 41.95 a view to providing most modern turing nickel-silver strips and spring lakhs. Taking into account Rs 0.55 mechanical devices for its new brass which are imported at present lakh, being the net profit of its Works. No further increase in the Production of copper plates used Colcrete Department in the previous capital will be made, but any addi­ for photo-engraving could not be year, and Rs 6.48 lakhs which is tional finance required will be met increased to meet the demand due the balance brought from the last from bank borrowings. to shortage of raw materials. The account- the total disposable amount Company has developed new export works out to Rs 48.50 lakhs from The Company has an important markets for its products like rolled which the following allocations are shareholding in Gammon (Malaya) sheets and circles, cold rolled brass made : Depreciation, Rs 9.20 lakhs 1959 and Gammon Nigeria. The and copper strips and hopes to book (Rs 8 36 lakhs) ; Taxation provi­ former is operating successfully substantial orders for its old and sion, Rs 17.25 lakhs (Rs 13.50 while the latter is encountering new products Out of 7,00,000 lakhs); Development Rebate Re­ difficulties which are, however, ex­ equity shares of Rs 10 each, serve, Rs 2.18 lakhs (Rs 3.48 pected to ease. As regards the sub­ 1,36,259 equity shares are held by lakhs); and Transfer to General sidiary, Freyssinet Prestressed Con­ the holding company. Reserve, Rs 6.00 lakhs (same). The crete, its past losses are now wiped Directors have proposed a taxable out and, with order books full, its Cotton Agents' Sugar Group dividend of Rs 1.60 per share of Rs future profits will be satisfactory. OF the four sugar units managed 10 which will absorb Rs 8.80 lakhs Garnsha Pipes, a company in which by Cotton Agents Private, viz (Rs 10.50 lakhs). The balance of Gammon India holds one-half of New India Sugar Mills, Upper Rs 507 lakhs (Rs 6.48 lakhs) is the issued capital of Rs 4 lakhs, is Sugar Mills, Bharat Sugar carried over to the next account. manufacturing reinforced concrete Mills and Gobind Sugar Mills, three The capital of the Company which pipes at . have reported satisfactory working was raised from Rs 30 lakhs to Rs Kamani Metals results during the year ended June 55 lakhs during the year by capi­ THE seventeenth annual report of 30, 1962. New India has increased talising the Reserves and issuing the Directors of Kamani Metals its sales by about 44 p c from Rs bonus shares, has been further ex­ and Alloys for the year to, June 30 111.41 lakhs to Rs 159.91 lakhs, panded during the current year by 1962 shows that the Company's Bharat by 34 p c to Rs .92.28 lakhs the issue of 6 lakhs Equity shares turnover has increased from Rs 2.14 (Rs 68.58 lakhs), and Upper Gan­ of Rs 10 each at a premium of Rs crores to Rs 2.32 crores. The profit ges by 9 p c to Rs 397.95 lakhs 7 per share bringing the total capi­ during the year, after providing (Rs 363.69 lakhs). Gobind's sales, tal of the Company to Rs 115 lakhs. for depreciation (Rs 566 lakhs as however, have dropped by 13 p c The new shareholders are not parti- against Rs 4.99 lakhs), and Manag­ fram Rs 147,89 lakhs to Rs 128.50

1972 THE ECONOMIC WEEKLY December 22, 1962

lakhs. The profit of New India in all cases was lower — in com- the previous year's production in before providing for depredation mon with other sugar mills in the case of Upper Ganges and and Development Rebate Reserve North . New India achieved- Gobind, but New India and Bharat has likewise gone up from Rs 6.60 9.03 pc (9.11 p c), Upper Ganges were permitted to crush the avail­ lakhs to Rs 10.78 lakhs by at out 9.64 p c (9.65 p c), Bharat 9.58 able sugarcane in the area. Besides, 63 p c. Upper Ganges' profit is pc (9.80 p c) and Gobind 9.64 pc the Government of Bihar extended higher by 29 p c at Rs 46.28 lakhs (9.66 p c). The lower recovery further concessions to New India (Rs 35.93 lakhs.) An increase of was attributed in general to un­ and Bharat by way of a reduction 19 p c is recorded in Bharat's pro- favourable climatic conditions, and in the sugarcane price and. a re­ fit .at Rs 8.02 lakhs (Rs 6.74 lakhs). in the case of New India and Bha­ bate in cane cess in order to offset Gobind's profit has shrunk by 48 rat to the longer duration of the the lower recovery of sugar. p c to Rs 10.44 lakhs (Rs 20.24 season also. New India operated lakhs). for 192 days (180 days) and No restriction is imposed on sugar production in the current For Depreciation and Develop­ Bharat for 216 days (194 days ). season, but owing to the cut impos- ment Reserve, New India has set For Upper Ganges and Gobind the aside Rs 2.62 lakhs (Rs 2.82 lakhs), crushing season was shorter at 167 ed last year, the acreage under Upper Ganges Rs 10.13 lakhs (193) and 180 (203) days, res­ sugarcane has gone down and in (Rs 11.89 lakhs), Bharat Rs 1.13 pectively. some areas the standing cane crop lakhs (Rs 0,94 lakh) and Gobind Production of sugar during the has been damaged by heavy rains Rs 3.01 lakhs (Rs 5.20 lakhs). The year was restricted under the Sugar and adverse weather conditions. net profit of New India has been (Regulation of Production) Ordi­ Hence the mills expect lower crush­ worked out at Rs 8.16 lakhs (Rs nance 1961, by 10 p c compared to ing this season. 3.78 lakhs), of Upper Ganges at Rs 36.15 lakhs (Rs 24.04 lakhs), of Bharat at Rs 6.89 lakhs (Rs 5.80 lakhs) and of Gobind at Rs 7.43 lakhs (Rs 15.04 lakhs). New India has substantially in­ creased its provision for taxation from Rs 45,000 to Rs 4.62 lakhs, Upper Ganges from Rs 8.92 lakhs to Rs 17.80 lakhs, Bharat from Rs 1.25 lakhs to Rs 3.94 lakhs. Go­ bind's provision is less at Rs 4.57 lakhs (Rs 6.98 lakhs). Upper Ganges has transferred a substantial amount of Rs 11 lakhs (Rs 7.50 lakhs) from its profit to General Reserve, and Gobind also has allo­ cated to General Reserve Rs 1.50 lakhs (Rs 5.25 lakhs). No alloca­ tions are made to General Reserve by New India and Bharat. From the balance available after making the above adjustments and meeting the preference dividends as before, dividends on ordinary shares have been maintained by all the companies at the same rates as in the previous year, New India proposing Rs 3.65 per share of Rs 10, Upper Ganges Rs 7.25 per share of Rs 10, Bharat Rs 1.50 per share of Rs 10, and Gobind Rs 2 per share of Rs 10. New India and Bharat set up neW records in crushing cane during the year. New India crush­ ed 1.98 lakh tons (1.97 lakh tons) and Bharat 1.17 lakh tons (1.12 lakh tons). Cane crushed by Bharat and Gobind went down to 4.35 lakh tons (4.68 lakh tons) and 1.52 lakh tons (1.69 lakh tons) respectively. The recovery of sugar