FGP-Pressure on Margins

scheme for its ammonia plant, which is scheduled for completion by end-1990 and is designed to effect a reduction in the overall energy consumption by about 10 per cent. The company's proposal to manufacture polyacetal based on in-house availability of methanol is awaiting clearance. It also proposes to use its in- house carbon dioxide, presently vented to atmosphere, for conversion to 50 TPD liquid carbon dioxide/dry ice. These have many industrial and domestic applications and arc currently in an acute short supply. The company has produced encouraging working results for the year ended March with record production and sale of 95,309 tonnes and 98,666 tonnes of ammonia showing 21 per cent and 24 per cent increases respectively over the previous financial year on annualised basis. The company made a gross profit of Rs 16.24 crore against Rs 13.51 crore in the preceding 15-month period following sales of Rs 45.54 crore against Rs 46.02 crore. Net profit was Rs 6.94 crore against Rs 4.49 crore. The recommended dividend of 18 per cent was covered 2.51 times by earnings as against 1.70 times previously. The company expects to receive a sizeable refund from ONGC on account of the gas price difference between the price already paid at the rate of Rs 1,350 for fertiliser use and Rs 2,400 for non-fertiliser use right from December 1983 till the notification of the uniform gas price of Rs 1,400 by the government as a national policy effective January 30, 1987.