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

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Heavy Reliance on Borrowings

Heavy Reliance on Borrowings Hansavivek COOPER ENGINEERING has been relying heavily on borrowings. These increased last year from Rs 616 lakhs to Rs 715 lakhs. The paid-up capital and reserves together aggregate Rs 195 lakhs; they are overshadowed by the accumulated losses of Rs 276 lakhs. The company has been sanctioned a third term loan of Rs 45 lakhs from 1RCI, a foreign exchange loan of US dollars 76,310 from ICICI, and an additional loan of about Rs 7 lakhs from 1RCI. In addition, bankers have made available various guarantees, discounting facilities, packing credit, etc. The company's results for the year to June last have improved with a gross profit of Rs 52 lakhs, against a loss of Rs 72 lakhs previously. The net profit of Rs 31 lajdis has been adjusted against the carried forward losses of the past years. Premier Construction, a sister concern, agreed to waive the interest on its loans from January 1974, and this reduced the interest burden for the year by about Rs 8 lakhs.

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