Ranging with Satisfaction

Ranging with Satisfaction Hansavivek BEST AND CROMPTON ENGINEERING has shown satisfactory results for 1977 with higher sales and profits. It has maintained dividend at 15 per cent which is covered a little over two-fold by earnings. The results would have been still better, but the increase in the minimum statutory bonus to 8.33 per cent and the long- term salary and wage agreements with the unions have caused an additional outflow of Rs 45 lakhs as compared to the previous year, according to the directors. This was partly compensated by the receipt of a higher amount of tax-free technical fees. The com- iply has taken up a phased machinery replacement programme, and is negotiating a term loan of Rs 32 lakhs from a term-lending institution. Capital additions of Rs 59 lakhs made during the year were financed mostly from internal funds. The research and development wing has plans to develop a new range of back pull-out pumps for process industries, auxiliary systems for high voltage busducts, new power-line accessories. new controls for DC and AC motors, special controls for lifts as well as cranes and special motors for defence establishments. The range of slumpumps and horizontal split casing pumps is also intended to be extended. The new designs for 18 KW train lighting alternators for airconditioned coaches and special motors for defence establishments are expected to be put on the market this year. The company is awaiting approval of the Government of India for a subsidiary in technical and financial collaboration with Rotork Controls of UK for manufacture of valve actuators. It is also awaiting government approval for a company in Nigeria in which it intends to invest up to 40 per cent of the equity capital. C Gopal Menon, chairman, foresees a good future for BCE in view of the great emphasis laid on power and rural development in the Sixth Plan. The company's activities are in line with the requirements of the plan.