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

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A Little Real Estate

A Little Real Estate Hansavivek GOKAK PATEL VOLKART has drawn up a plan for modernisation of its mills at an outlay of Rs 3.66 crore. The proposal has been approved under the soft loan scheme by IDBI, ICICI and IFCI and a term loan of Rs 2.30 crore has been sanctioned. ICICI has further sanctioned a foreign currency loan of DM 2.6 million (equivalent to about Rs 177 lakh) for import of textile machinery. The company has decided to develop some of its properties and has commenced construction of a residential building at Cuffe Parade in Bombay. Foundation work of the building is in progress. Last year the company transferred further land and buildings of a book value Rs 11.76 lakh to 'development of properties account'. The excess of the value at which the properties have been transferred to this account over their book value, amounting to about Rs 114 lakh, has been transferred to capital reserve number 2. The company's proposal to increase investment in P T Gokak Indonesia, a textile mill in Indonesia, set up in association with others, to rupee equivalent of US $ 1,000,000, as against rupee equivalent of US $ 460,000 approved by the share- holders earlier, has since been approved by the Central government under FERA as well as the Companies Act. IDIBI has also sanctioned the necessary financial assistance to meet the cost of the investment aggregating to about Rs 61 lakh. The project commenced operation in March last and the entire capacity of 30,720 spindles is expected to be fully operational by the end of June 1981. GPV has turned out satisfactory working results for 1980 with higher sales and profits. Turnover has increased from Rs 23.95 crore to Rs 27.46 crore and gross profit from Rs 3.30 crore to Rs 3.65 crore. Profit margins, however, have shown a small decline over the year. Net profit is unchanged at Rs 1.31 crore and the dividend, maintained at 22 per cent, is covered 1.62 times against 1.42 times previously. The results would have been better, but for all-round escalation in costs and grid power shortages. The directors point out that conditions in the textile industry are very depressed because of static sales realisations and rising costs. Exports amounted to Rs 4.30 crore against Rs 2.95 crore in the previous year. Revenue from the shipping activities of the Patvolk division increased by around 20 per cent over the previous year and tonnages recorded improvement at all ports in which the company operates. Among subsidiaries, Patel Cotton and John Fleming fared better. Bradma of India turned out poor working results due to increase in costs and development expenses incurred on marketing new products.

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