Who Is Paying for Poor Results

Who Is Paying for Poor Results?
Hansavivek RAMON AND DEMM, makers of transmission and differential gears for automobiles, propose to expand capacity by more than 100 per cent. Last year, installed capacity was raised from 050 tonnes to 800 tonnes and actual production from 609 tonnes to 754 tonnes. The licensed capacity was 1,600 tonnes. Total capital outlay on expansion is estimated to be Rs 550 lakhs. The company had applied to ICICI for A foreign exchange loan worth Rs 250 lakhs to meet the cost of imported plant and machinery; in the meantime, government indicated that it might be possible to give foreign exchange from West German project aid. The company has made a joint application to IDBI, lCICI and lFCI for a rupee loan of Rs 350 lakhs. Last year, ICICI released to the company three foreign exchange loans equivalent to about Rs 5 lakhs; it has also agreed to grant another foreign exchange loan of US S 1,44,340 for import of balancing and testing equipment. The State Bank has been approached to increase the cash credit limit, from Rs 65 lakhs to Rs one crore, for working capital.