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

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Poor Results, High Dividend

Poor Results, High Dividend

Poor Results, High Dividend Hansavivek GOODLASS NEROLAC PAINTS' working results for 1977 are poor. There was a 25 per cent fall in gross profit, from Rs 2.43 crores to Rs 1.83 crores, despite slightly higher sales of Rs 16.78 crores against Rs 16.63 crores in the previous year. The contraction of margins is attributed to labour unrest. The company claims that the wage agreement expired at the end of 1976 and that in spite of being offered a "very substantial improvement in total emlouments" workmen chose to commence an agitation which culminated in a strike from mid-December 1977 both in the paints factory in Bombay and the pigments factory at Thane. Manufacturing operations at the latter factory recommenced after about a week, but the strike at the Bombay paints unit continued till March 7 last, when a three-year agreement on the terms originally offered by management was sign ed. The directors .state in their annual report dated June 14 that cordial relations have since been restored and that production is nearing 'normalcy'. The chairman, G Khandwala, however, disclosed at the annual meeting on July 19 that turnover during the first six months had been 25 per cent lower than the level attained in the same period last year. Despite poor results the directors have maintained dividend at 25 per cent for 1977 and even recommended a generous bonus issue in the proportion 5:7. They have also recorded their intention to recommend payment of a dividend at "not less than 14.58 per cent" on the expanded capital after the bonus issue.

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