Opening New Areas for Growth

Opening New Areas for Growth Hansavivek TATA CHEMICALS has once again produced good working results for the year ended March 1986 with a gross profit of Rs 38.49 crore against Rs 33.09 crore in the previous year following sales of Rs 136.57 crore against Rs 111.51 crore. Net profit is Rs 21.68 crore (Rs 20.97 crore). Dividend is maintained at 25 per cent on the enlarged capital and is covered 3.18 times as against 6,01 times previously. It may be pointed out that the company had made a change in 1984-85 in the method of accounting for interest on borrowings for capital expenditure. The board has decided to revert to the practice consistently followed before 1984-85. Accordingly, the additional interest capitalised in 1984-85 has been written back and will now be accounted for as and when it falls due. As a result of this adjustment, there is no effect on the profits for 1985-86, as an additional transfer of Rs 198 lakh made to the Investment Allowance Reserve and Rs 175.80 lakh transferred to general reserve number 2 have become free and have therefore been written back.