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

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Union Budget: Long on Words and Short on Funds

The budget for 1999-2000 has ducked two basic problems requiring urgent attention: one, the immediate issue of an acute liquidity shortage and recessionary conditions faced by Indian industry and, the other, the longer-term question of social deprivation faced by a majority of the population which reflects the serious weaknesses of the pattern of development pursued so far and which is increasingly proving to be a major constraint in accelerating economic growth.

Baroda Rayon, Britannia Industries, Shipping Corporation of India IVP

BARODA RAYON Deeper in the Red BELEAGUERED BARODA RAYON went further into the red in 1997-98. While the company

Birla VXL, Dr Reddy's Labs, United Phosphorus, Laesen & Toubro

SUPREME INDUSTRIES Successful Restructuring CONTROLLED by the Taparias, Supreme Industries is engaged in the manufacture of injection moulded plastic products, extruded products and machinery and moulds. It also trades in polymers, yarn and colourants. The company performed well in 1997-98, when its net sales increased by 14.8 per cent over the pervious year. While operating profit improved by 7.4 per cent, a fall in interest charges helped the company post a 30.2 per cent increase in its bottomline. Though earnings per share increased from Rs 11.9 to Rs 14.6, the company did not raise the dividend rate but maintained it at last year

Sail, Vikrant Tyres, Zenith

SAIL Crushing Legacy SLUGGISH demand for steel in the domestic market coupled with competition from imports due to lower international prices and enhancement of supplies in the domestic market resulted in a stress on margins for the steel industry. The performance of the Steel Authority of India (SAIL) was further affected due to additional costs in the form of depreciation and interest charges following the modernisation of its Durgapur Steel Plant (DSP) and other capital schemes and the subsequent increase in working capital needs. The poor growth in industrial production affected demand for steel during the year. With the situation not improving even during 1998-99, SAIL reported a loss of Rs 617 crore during the half year ended September 1998. The public sector company had reported a profit of Rs 54 crore during the corresponding period last year.

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