Reduced Tax Burden to the Aid

Reduced Tax Burden to the Aid Hansavivek INDIAN ALUMINIUM COMPANY (INDAL) achieved record metal production, of 87,492 tonnes in 1981, as against 57,857 tonnes in 1980, and stepped up sales to Rs 149.24 crore against Rs 114.33 crore. However, the outcome was a drop in gross profit, from Rs 13.34 crore to Rs 9.91 crore. With reduction in tax burden, net profit amounted to Rs 2.64 crore (Rs 3.52 crore). Dividend has been lowered from 15 per cent to 13.5 per cent, nearly one-third of which is short-earned as against one-fifth last year. The disappointing performance is attributed to gross inadequacy of retention price of the metal permitted by government for almost the entire year. On the other hand, cost of key inputs, especially power, petroleum coke and pitch escalated sharply. Until early December, the company had to sell metal at a retention price which was lower than even the cash cost of production. Gov ernment , revised aluminium prices on December 3 last, to compensate for increased costs of raw material and power. Simultaneously, rate of ad valorem excise duties on aluminium was reduced. These announcements augur well for the industry, though they came too late to have any significant influence on 1981 results. The directors suggest that government should put into effect a formula by which increases in the cost of key inputs