Arrested Expansion

Arrested Expansion Hansavivek PHILIPS INDIA is still discussing with the government its long-term industrialisation plan, originally submitted in May 1971 and revised in March 1973. The company's several applications for manufacturing new items and expansion of the present range of products have been rejected. In some cases, applications have been made at the instance of government for clearance under the MRTP Act. The directors are studying the implications of the new Foreign Exchange Regulation Act. The company will have to obtain permission from RBI to continue each of its many industrial, trading and commercial activities. They comment that the new law adds to the already numerous and diverse controls and permissions required for carrying on business. They record their appreciation of the "valuable help and cooperation" received by the company from N V Philips' Gloeilampenfabrie- ken of Holland and stress the need for continued co-operation and technical assistance in all fields. . Of the 44-year-old Indian company's subscribed capital of Rs 679 lakhs, as much as Rs 407 lakhs is held by a subsidiary of the ultimate holding company. Moreover, Rs 326 lakhs out of the total share capital comprises bonus shares. Another one-for-one bonus issue has been recently recommended by the board.