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

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Looking to Exports

HINDUSTAN MOTORS has well maintained the progress started in 1976-77. Despite the increase in excise duty in the last budget and the enhanced price of fuel, the management believes that stable prices and a faster rate of industrial activity are likely to help increase the demand for vehicles and other products of the company. During the first quarter of the current year, the company sold 6,067 cars and trekkers and 342 trucks, as against 5,027 and 102 units, respectively, in the corresponding period of the past year. Output of cars and trekkers during 77-78 was 20,882 units as against W,763 units in the previous year. Production of other earth-moving and heavy-engineering products was also higher than in 1976-77. The new 35- tonne rear dumper has found a ready market The company has taken up a scheme for manufacture of hydraulic for investment allowance. The remaining surplus of Rs 1.02 crores has bees adjusted against the debit balance of Rs 1.08 crores brought forward from the previous year leaving a credit balance of Rs 70,945 to be carried forward. But there are arrears of unprovided depreciation amounting to Rs 9.08 crores and of preferential dividends for 8 years aggregating Rs 1.86 crores. Also, the company has not been able to provide for development rebate reserve/investment allowance amounting to Rs 1.45 crores. The directors point out that last year the company had to contend with cost escalations in all sectors of production as well as acute shortage of components required for the manufacture of vehicles. Due to the power situation and other circumstances, various ancillaries could not supply components for months together and production had to be restricted although the company had orders for larger number of trucks, trekkers and cars. With the development of new supplies, supplies of components are expected to improve during excavators, and is negotiating with government and a foreign collaborator for this purpose. The company produced the bigger 50/5-tonne tower crane in the country and also turned out a 400-tonne straight side power press. Exports, however, declined from Rs 1.70 crores to Rs 1.30 crores. Orders for supply of trucks, dumpers, cranes, and spare parts were secured from African and Middle East countries and also from Nepal, Sri Lanka, Bangladesh, Pakistan, New Zealand and UK. Fart supplies against these orders were made last year and the balance of supplies are being made this year. With increase in sales from Rs 78.01 crores to Rs 89.04 crores, gross profit expanded from Rs 1.70 crores to Rs 5.17 crores. Out of this, Rs 4.12 crores have been provided for depreciation (including Rs 1.32 crores against arrears for earlier years), and Rs 4 lakhs.

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