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

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Dismal Performance

Dismal Performance Hansavivek HINDUSTAN MOTORS has fared very badly during 1975-76, with drop in production and sales of vehicles and consequently in turnover, and the outcome was a much higher deficit than in the previous year. Production of ears fell from 15,557 numbers to 9,260 numbers, trucks and has chassis from 1,645 numbers to 950 numbers and automotive engines from 1,612 numbers to 970 numbers. Production of shovels, dumpers and presses was also down but that of front-end loaders, crawler tractors and cranes was up. Provision for depreciation amounting to Rs 2.90 crores in respect of Hind- motor factory has not been made; only depreciation for carthmoving equipment division has been provided for. Total arrears of depreciation amounted to Rs 7.29 crores. After taking into account the debit balance of Rs 26 lakhs brought forward from the previous year, the revenue account shows a net loss of Rs 2.97 crores. This, however, has been arrived at after crediting to the account Rs 2.18 crores transferred back from development rebate reserve no longer required and Rs 13 lakhs being refund of income-tax in respect of earlier years. No provision has been made against the' future payment of gratuity, estimated at Rs 2.03 crores. Besides, arrears of preferential dividends amounted to Rs 1.40 crores. The rupee liability of the company in respect of long-term foreign loans outstanding as at the end of the year increased by Rs 2,91 crores due to variation in exchange rate of rupee in terms of sterling and dollar. The directors propose to make adjustment on the basis of actual repayment of loans. Sale of cars has increased in the current year as a result of reduction in consumer price following the relief granted in the last budget in the shape of 5 per cent reduction in excise duty on ears and exemption of tyres, tubes and batteries from excise duty if supplied as original equipment, coupled with reduction of prices of their products by ancillary units. But sale of commercial vehicles has not picked up despite various measures of product improvement and sales promotion. Calcutta State Transport Corporation, however, has introduced Hindustan buses in its regular fleet. The company laid off a number of workmen owing to under-utilisation of capacity for cars and trucks. The directors say that workmen "fully co-operated in the implementation of this decision''. In order to utilise idle capacity of forge, foundry, machining and pressing deci- sions, the company secured a number of job orders and also introduced minibus chassis and Mark 3 Ambassador ear. A light commercial vehicle 'Hindustan Trekker' which can be used both for carrying passengers and goods, has been marketed. The Com-

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