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

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MUSCO-Foreign Collaboration for New Equipment

MAHINDRA UGINE STEEL COMPANY (MUSCO) has secured approval of the central government for entering into a collaboration with a West German company for obtaining design and detailed engineering drawings for vacuum degassing (VD) and vacuum oxygen decarburisa- tion (VOD) equipment to be fabricated in India. The application of the company for import of capital goods has been cleared by the government. Steps are also being taken to convert the letter of intent for the modernisation-cum-expansion programme into an industrial licence. Meanwhile, the company has turned out vastly improved working results for 1986-87 with a gross profit of Rs 11.24 crore against Rs 8.13 crore in the previous year even though gross income was a shade lower at Rs 83.49 crore against Rs 83.62 crore. Both depreciation and taxation have taken The Week's Companies away a bigger slice of profit. Although the company does not have any taxable income on account of unabsorbed allowances carried forward from earlier years, provision for taxation has been made this time. The gap has thus narrowed, leaving a net profit of Rs 4.95 crore against Rs 4.19 crore. The shareholders have been rewarded with a five-point hike in dividend at 20 per cent which is covered 3,31 times by earnings against 3.46 times previously.

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