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

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Getting Out of Red

Getting Out of Red CENTRAL INDIA SPINNING is diversifying its activities to augment profitability. To begin with it will take up some trading and semi-manufacturing activities which do not involve any substantial capital expenditure such as purchase and sale of steel and steel products and chemicals like soda ash, sodium bicarbonate, benzene hexa- chloride, bromine, etc. A proposal to manufacture stainless steel utensih and cutlery is also being considered. In the future it may also undertake the manufacture of a variety of plant, machinery and tools. Meanwhile, after a long period of dullness, the cloth market has shown signs of revival due chiefly to the rationalisation of the excise duty structure in the last Budget, though this relief has been neutralised to a large extent by the rising prices of cotton. The reorganisation of the company's share capital structure has already resulted in a significant improvement in the debt-equity ratio and the relationship between the share capital and the fixed assets, This, coupled with efforts towards maximum utilisation of the plant and equipment and measures for controlling costs, "promise a better period for the company in the ensuing year", says the chairman. Naval Tata. During its 95th year ended June last. C I Spinning has shown a modest improvement in its working results despite unsatisfactory trading conditions earlier in the year. Total income rose from Rs 8.09 crores to Rs 9.71 crores, and the outcome was a trading surplus of Rs 3 lakhs against a deficit of Rs 15 lakhs in the previous year. The accumulated past losses of Rs 38 lakhs have been fully adjusted against the piofit made during the year, together with a write-back, balances standing in general and other reserves and the reduction of equity capital. The secretaries and treasurers, Tata Industries, have once again foregone their minimum commission of Rs 50.000 and Sassoon J David and Company. Tata Sons and Tata Industries have foregone Rs 4 lakhs on the loans advanced by them. These loans, aggregating Rs 55 lakhs, have now been converted into equity capital under the proposals for the reorganisation of the share capital structure which became effective on June 30 last. No provision for depreciation has been made; arrears now amount to Rs 1.41 crores. Arrears of dividend on preference shares for 1968-69 amount to Rs 5 lakhs; arrears on this account amounting to over Rs 41 lakhs upto 1967-68 were extinguished in pursuance of the proposals for the reorganisation of the share capital structure. Under the proposals, SICOM has been allotted new equity shares of the nominal value of about Rs 35 lakhs.

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