Continued Good Results and Foreign Hold

Continued Good Results and Foreign Hold Hansavivek GENERAL ELECTRIC COMPANY OF INDIA has obtained letters of intent' for substantial expansion in respect of special-purpose transformers and switch- gear. It intends to implement the project expeditiously. Decisions on its other expansion application are also expected shortly. To reduce the percentage of foreign shareholding, the Controller of Capital Issues has allowed the company to issue 7,13,500 equity shares, of Rs 10 each, at a premium of a rupee per share, which is well below its net asset value. As at July 10 last when the directors' report for the year ended March 1975 was signed, a sum of Rs 1,03,280 was in arrears for the first and final call, of Rs 8 per share (Rs 5 on capital account and Rs 3 on premium account), made on September 18, 1973. The company has turned out good results, with higher sales at enhanced margins, though there was a slow down in demand in the second half of the year for some of its products. Sales of agricultural motors and pumps, buoyant during the first half, were also severely affected later because of the power shortage in the northern and southern regions. The engineering division had a successful year, despite restrictions on purchase of transformers by the state electricity boards following the credit squeeze. The merchandising division increased its sales, but faced difficulties in the lamp and fan section, which had to contend with severe competition because of reduced demand and because of a slowdown in building activities. The projects division had a satisfactory year, though credit restrictions left their mark on the furnace business in the closing months. This situation has continued even in the new year. Prospects for the general contract activity, however, are still promising. Export sales showed a satisfactory upward trend. The order book together with negotiations in progress, indicate that this trend will continue in 1975-76. Equity dividend has been stepped up, from 3.75 per cent to 12 per cent, of which 8 per cent is payable this year and the balance on a deferred basis.