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

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ANIL STARCH-Sharp Turnaround

BATA INDIA Well-Healed BATA INDIA has turned in encouraging working results for 1987 with a 44,3 per cent advance in gross profit to Rs 8.82 crore from previous year's Rs 6.11 crore following a 14 per cent increase in turnover at Rs 254 crore from Rs 223 crore. Net profit is 71.2 per cent higher at Rs 3.87 crore (Rs 2.26 crore) despite higher provision for taxation. The directors have recommended a dividend of 15 per cent on the capital doubled by a bonus issue as against 20 per cent paid in the previous year' on old capital. The distribution is covered 2.46 times by earnings as against 2.13 times. The viability of Batanagar, which is a high cost unit, is still at stake in the absence of a marked improvement in its productivity. The situation in Mokamehghat tannery is also uncertain. Exports of the company's own manufactured products were Rs 63.4 million, an increase of 22 per cent over the previous year. Exports were mainly to freely convertible currency areas such as western Europe and North America. There was also significant progress in third party exports, which increased from Rs 17.9 million in 1986 to Rs 27 million in 1987. The company has set up a separate Research and Development Centre' at Agra to assist the small-scale footwear industry to improve product quality. The facilities in the Agra centre are available to all SSI units and government and quasi government bodies. In regard to the FERA and DRI enquiries, the directors say that most of the show cause notices received by the company in 1985 under FERA have been dealt with satisfactorily. The remaining ones are being followed up for an expeditious settlement. The company has submitted representations to the government in regard to the drawback claims and the matter is being pursued with the authorities concerned.

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