Hard Pressed by Rising Costs

Hard Pressed by Rising Costs Hansavivek RALLIS INDIA has compiled accounts for the nine months ended May 1984 without incorporating the operating results of Protein Products of India (PPI), a subsidiary proposed to be amalgamated with the company with effect from September 1, 1983. On completion of the legal formalities for amalgamation, those shareholders-of PPI, who opt for the com pany's shares in lieu of their holding in PPI will be entitled to the dividend declared by the company commencing from September 1, 1983. In view of the delay in completion of the legal formalities, the directors had decided to pay an interim dividend of 11 per cent. No final dividend has been recommended. The company has earned during 1983-84 a gross profit of Rs 2.17 crore against Rs 5.24 crore in the previous year following sales of Rs 118.12 crore against Rs 178.75 crore. These figures show a marked contraction of pro fit margins. Net profit is Rs 89 lakh (Rs 211 lakh). The distribution is covered 1.43 times by earnings as against 2.93 times previously. The company sold its chemicals factory at Magarwara on March 1, 1984 as a going concern to Jay Shree Tea and Industries at a slump price of Rs 295 lakh. The company also disposed of its shareholding in Searle (India) in compliance with the condition laid down by the Central government in the letter of intent granted to it for the manufacture of Fenvalerate. The company proposes to extend the maturity period of the 7