NEW DELHI-Foreign Collaboration at Any Price

various cranes. Further, the works remained closed for about two months during September-November 1970.
CHLORIDE INDIA, formerly known as Associated Battery Makers (Eastern), has received all the necessary licences from government and is going ahead with its programme of doubling the Chinchwad factory and making it self-supporting in container manufacture. The company intends to introduce the new generating battery at this unit, using multi-coloured polypropylene containers for certain applications. It is also setting up, with the help of the technical consultants, Chloride Group, an advanced research and development centre to carry out an intensive programme for indigenous substitution of imported raw materials, plant, and equipment. Despite severe competition in the international battery market, CI was able to step up exports by 15 per cent to Rs 95 lakhs last year. During the year, the company made 5,96,038 numbers of storage batteries, against the installed capacity of 7,26,000 numbers. Both sales and profits were higher. Increased battery output from the Chinchward factory apart, price adjustment that followed a sharp increase in raw material and other costs contributed to this outcome. Borrowings were reduced. Moreover, the ratio of inventory/ sales was significantly lower compared to the preceding year. Dividend is stepped up 2.5 per cent to 22.5 per cent, with a final of 14.5 per cent, a part of which is expected to be exempt from tax as in the preceding two years. The company complains that there has been a sharp increase in the procurement costs of lead through MMTC on account of its handling and commission charges, in addition to the heavy import duty. Moreover, frequent variations in prices have posed problems to its following a consistent price policy and accepting large export orders at fixed prices with long delivery periods. The company's performance in the current year so far has been satisfactory. The power situation in the country, however, is causing concern. Stand-by power generation facilities are being installed at considerable capital and operational costs, but J Sengupta, managing director, feels that complete self-sufficiency in this direction may not be economically Uasible. The company's bonus issue proposal is still under consideration by government MYSORE PAPER is considering the possibility of stepping up production and is examining the availability of raw materials required for a large-scale ex- pansion. During the year ended March 1972, the company produced 24,078 ton nes of paper against 23,788 tonnes previously. The annual licensed and installed capacities were unchanged at 18,000 tonnes. Higher production and increased sales realisation raised turnover, but margins shrank on account of increases in costs of raw materials, chemicals, fuel, etc. Of the total borrowings of Rs 450 lakhs to finance the expansion scheme, the company has repaid Rs 301 lakhs. Equity/debt ratio, which had gone up to 1:3 at one stage, has come down to 1:0.5. IFCI, one of the debenture holders, has approved payment of equity dividend of 15 per cent, which is very well covered by earnings.