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

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Not Out of the Woods

Not Out of the Woods

Not Out of the Woods Hansavivek JESSOP, which had experienced a decline in sales in the last few years, reversed this trend in the 17 months ended March 1973 when its average monthly sale increased to Rs 126 lakhs against Rs 67 lakhs in the previous 12 months. Considering the total capital employed in business, however, even this increased turnover is quite low. Worse still, the company has incurred a higher loss, lifting the accumulated deficit to Rs 9.87 crores to stand against the total paid-up capital of Rs 2.24 crores. Dividends have been skipped once again. Arrears of preference dividends amounted to about Rs 6 lakhs. Liability for gratuity to employees was estimated at Rs 198 lakhs, but that for pension Has not been determined. As per the usual practice, retirement gratuity and pension to employees have been debited to profit and loss account on cash basis. Also, no provision has been made in the accounts for anticipated losses on orders in hand for which work is still to be done. Anticipated losses on such major orders have been estimated at Rs 3.47 crores. Interest on government loans has been provided at 6.25 per cent per annum on Rs 2.50 crores and at 6.75 per cent per annum on Rs 8.98 crores. Interest amounting to Rs 25 lakhs due to nonpayment on scheduled dates has not been provided for, as the company has approached the government for its waiver.

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