Mirza Tanners Q2 net up by 23.6 pc

NEW DELHI, Oct 21: Mirza Tanners Limited (MTL), the largest exporter of shoes, has reported a net profit of Rs 3.66 crore, an increase of 23.6 per cent during the second quarters of year 1999-2000, against Rs 2.96 crore in the same period previous year.

The company achieved a turnover of Rs 34.76 crore as against Rs 27.56 crore achieved during the corresponding period in previous year. Gross profit (before depreciation and taxation) at Rs 4.32 crore has shown a growth of 29 per cent over Rs 3.35 crore achieved during the corresponding period of the previous year.

The company’s income in the second quarter increased from Rs 27.57 crore to Rs 34.76 crore an increase of 26.7 per cent.

The company’s net profit in the first half of its finachial year 1999-2000 is Rs 7.19 crore against Rs 5.85 crore in the same period last year an increase of 23 per cent. The gorss profit in H1 is Rs 8.46 crore against Rs 5.59 crore precious year.

A new shoe factory set up at Nodia with an investment of Rs 18 crore has a capacity to produce 2000 pairs of shoes per day (six lakh shoes per annum) under the stuck on process and another 2000 pairs with double density direct injection polyurthane (pu) soles, both the above divisions have commenced production and have achieved a capacity utilisation of more than 65 per cent. The unit is expected to produce eight lakh pair of shoes valued at Rs 55 crore in the year first full year of operation.

The company has also issued 11 per cent redeemable preference shares amounting to Rs 5 crore through private placement on September 22, 1999 redeemable in two equal instalments at the end of 4th and 5th year, a company release said. (UNI)

ASSOCHAM welcomes priority accorded to IRA Bill

NEW DELHI, Oct 21: ASSOCHAM president Mr K P Singh has welcomed the priority accorded to the Insurance Regulatory and Development Authority Bill for passage in the current session of the Parliament.

In a statement here today he said, the swift step would, no doubt give positive signals to the foreign investors and the Government should be firm in not getting browbeaten by the proposed protest marches by the trade unions and must handle them firmly.

The ASSOCHAM chief said, there was no gain saying the fact that at a time when the country was in dire need of long term funds for investment in infrastructure, information technology and other sectors, it would be most unwise to keep huge funds idle, that can be garnered after liberalisation of insurance sector.

Moreover, a very large section of people, unfortunately, had no insurance cover in retirement or pensions. While millions go without health insurance cover, a large segment of rural incomes were not reflected in the growth of insurance premium as there is no marketing of products to this segment.

He especially complimented the Finance Minister for sticking to his word when the latter announced at IMF recently that the bill would be introduced immediately.

Mr Singh said the insurance business in India at present was a mere 6.6 billion dollars whereas the potential was as much as 26 billion dollars in the next few years. With amounts of this magnitude involved, India needed to take urgent steps for reform in this sector and the Government had taken the right step forward by its decision to introduce the bill in the current session. (UNI)

Prices of imported edible oils, vanaspati drop sharply
Index quartely

NEW DELHI, Oct 21: The Commanman on the street heaved a sigh of relief as prices of imported edible oils and vanaspati dropped sharply during the second quarter of current fiscal year.

Besides edible oils, raw rubber, sulphuric acid, crockery, commercial plywood planks and spanners also registered a substantial fall in their prices. But he was forced to shell more money to buy vegetables, fruits and other essential commodities as their prices recorded a significant rise during the period.

There are 447 commodities which constitute a basket to calculate the wholesale price index. Of these, only 175 commodities showed variations in their prices during this period(July-September). Of them prices of 120 commodities became dearer while 48 became cheaper. The prices of seven commodities remained unchanged because the rise in their prices in certain weeks neutralised with decline in other weeks.

Of the 120 commodities, 58 became costlier between one and four per cent, three commodities registered a marginal increase in their prices. The prices of 31 commodities rose between five and nine per cent, 17 became dearer between 10 and 14 per cent, eight prices went up between 15 and 19 per cent, two commodities showed an over 25 per cent increase. One commodity became costlier by 20 per cent.

Of these, furnace oil saw the steepest rise during this quarter at a whopping 27 per cent, closely followed by castor oil which became dearer by 26 per cent. Barley prices shot up by 20 per cent, imported petroleum crude and rape seed and mustard seed by 19 per cent each, piston and masur prices by 17 per each, zinc prices by 16 per cent, tanning material prices by 15 per cent, fruits and vegetables by 14 and 10 per cent respectively.

Of the 48 commodities that became cheaper during the this period, 27 prices fell between one and four per cent, 12 registered a price decline between five and nine per cent, six between 10 and 14 per cent, two between 15 and 19 per cent. Imported edible oil recorded a sharp drop in its price by 33 per cent.

After declining marginally in the first week of the current quarter to 356.9 from 357.1 in the last week of the previous quarter, it witnessed a steady rise till September 18 when it touched 364. But at the last week (September 25)of the current quarter it dipped slightly by 0.2 points to 363.8.

The index for food articles, under the primary articles group, rose by 24.7 points to touch 471.9 at the end of second quarter from 447.2. This jump was mainly due to barley prices soaring by 20 per cent, while masur prices increased by 17 per cent, fruits by 14 per cent, bajra and ragi prices by 12 per cent each, vegetables by 10 per cent, wheat prices by nine per cent.

Six commodities became dearer between one and four per cent. But poultry chicken and mutton became cheaper by three per cent each. Three commodities fish, moong and pork prices-fell between one and four per cent. The urad prices remained unchanged because increase in its prices in certain weeks neutralised with the decline in other weeks.

With tanning materials becoming costlier by 15 per cent, lac and raw jute prices shot up 14 per cent each, fodder and mesta became dearer by 13 per cent each, gingelly seed became dearer by 10 per cent. Four commodities prices went up between five and nine per cent. Five per cent commodities became costlier between one and four per cent, the index for non-food articles made a moderate rise of 6.9 points to 379.4 from 372.5.

But raw rubber became cheaper by 19 per cent. Four commodites became cheaper by five to nine per cent. The prices of raw wool and kardi seed remained static because the hike in certain weeks neuralised with fall in other weeks.

After remaining unchanged for nine weeks, the index for minerals rose by 5.9 points to 172.1 from 166.2 during this period. Imported petroleum crude became expensive by 19 per cent while magnesite prices went up by 12 per cent and rock phosphates prices by three per cent.

The hefty 27 per cent hike in prices of furnace oil was mainly responsible for fuel, power, light and lubricants index go up by 7.3 points to 401.8 from 394.5. Light diesel oil became dearer by 12 per cent during the second quarter of current fiscal. Two commodities such as bitumin and naptha became costlier by six and five per cent respectively. Two commodities became dearer between one and four per cent.

Despite a one-third fall of rices of imported edible oil, the index for food products under the manufactured products group, witnessed a rise of 3.2 points to 347.8 from 344.6. During this period, rapeseed oil and mustard seed oil became costlier by 19 per cent, suji prices soared by 12 per cent, solvent extracted groundnut oil and groundnut oil by 10 per cent each, eight commodities between five and nine per cent, five commodities prices between one and four per cent. But gingelly oil and hydrogenated vanaspati prices fell by 14 per cent each. The prices of rice bran oil, salt and cotton seed oil remained static because the rise in certain weeks neutralised with slump in other weeks.

The index for beverages, tobacco and tobacco products saw a minuscule rise of 1.9 points to 508.3 from 506.4 because cigarettes prices made a slender increase of one per cent. But beer prices slid by one per cent.

The index for textiles fell by 1.5 points to 319.6 from 321.1 because viscose filament yarn became cheaper by six per cent, woollen cloth by five per cent, viscose staple fibre, hessian cloth and hanks price by four per cent each. But coir yarn became costlier by 14 per cent, hessian and sacking bags by 10 per cent. The prices of cones remained stagnant because the rise in its prices in certain weeks neuralised with decline in other weeks.

After remaining static for 25 weeks, the index for wood and wood products fell minutely by 0.3 points to 626.1 from 626.4 because of marginal decline in commercial plywood planks prices. The index fell further by 8.8 points to 617.3 because commercial plywood planks prices dropped again by 10 per cent.

The index for paper and paper products rose by 5.6 points to 395.3 from 389.7 because map, litho paper became dearer by 17 per cent, five commodities between five and nine per cent and cream laid woven paper prices by four per the cent. During this period only white printing paper became cheaper by four per cent. The cost of manufacture of boards saw a marginal rise.

The index for leather and leather products remained dormant for 14 continuous weeks since June 19 at 318.3.

The index for rubber and plastic products fell by five points to 242.2 from 247.2 because decorative laminates became cheaper by six per cent and giant tyres prices slid by two per cent. But tractor tyres became dearer by two per cent and motor car tyres prices moved up by one per cent.

Due to a whopping 26 per cent hike in prices of castor oil, the index for chemical and chemical products went up by 3.4 points to 290.8 from 287.4. The prices of essential oils became costlier by 12 per cent. Three commodities became dearer between five and nine per cent and eight commodities prices shot up between one and four per cent. But sulphuric acid prices plummeted by hefty 17 per cent, PVC sheets by 13 per cent and formaldehyde prices by eight per cent.

The index for non-metallic mineral products dipped by 5.8 points to 372.2 from 378 because crockery prices slumped by ten per cent, asbestos cement corrugated sheets by four per cent and building bricks and electrodes by two per cent and one per cent respectively. But three commodities became dearer between one and four per cent during this period.

Sixteen per cent hike in prices of zinc and 15 per cent rise in prices of aluminum sheets and strips were the main factors for the index for basic metals, alloys and metal products to go up by 4.4 points to 358.3 from 353.9. Stamping and forgings became dearer by five per cent. Ten commodities prices rose between one and four per cent. But spanners prices fell considerably by 10 per cent while steel wires became cheaper by seven per cent and steel ingots prices dipped by one per cent.

A five per cent slump in the prices of paper insulated cables and four per cent drop in prices of power driven pumps made the index for machinery and machine tools to go down marginally by 0.8 points to 306.6 from 307.4. PVC insulated cables prices and internal combustion engines came down by three per cent each. But enamelled copper wires became costlier by eight per cent. Television sets and switch gears prices moved up by one per cent each. The prices of tractors, air and gas compressors rose marginally.

The index for transport equipment and parts rose by 4.1 points to 294.7 from 290.6 because the prices of piston saw a hefty 17 per cent hike during this period. Broad gauge passenger carriages became costlier by nine per cent and trailors and springs prices rose by six per cent each. Six commodities became dearer between one per cent and four per cent.

After remaining dormant for seven weeks since the beginning of this quarter, it moved up marginally to 181.7 from 181.6 because house service meters became dearer by two per cent. After gap of four weeks, it rose again to 181.8 due marginal hike in prices of house service meters. (UNI)

JK Bank to foray into insurance sector: Khan

NEW DELHI, Oct 21: Jammu and Kashmir Bank Limited is negotiating with two American insurance companies as part of its planned foray into the insurance sector by March 2000, Mr M Y Khan, Bank Chairman, said today.

"We have made some progress with one particular American company. We should be ready by the end of this fiscal when the Parliament is expected to pass the IRA Bill," Mr Khan said.

The bank has received an in-principle nod from the RBI to go ahead with the planned foray into both general and life insurance.

"We would be participating with from our foreign partner in a combination of asset lease and equity participation in the new subsidiary," Mr Khan added.

The bank intends to take advantage of branch reach and the "virgin market" of Jammu and Kashmir where it is the banker to the State Government.

Announcing JK Bank half-yearly results at a news conference here, the Bank Chairman said the net profits has grown by 24 per cent at Rs 55.11 crore compared to Rs 44.45 crore during the corresponding period last year.

The investment portfolio grew by 22 per cent to Rs 3,441 crore from Rs 2,841 crore while the advances went up 39 per cent at Rs 2,194 crore against Rs 3,050 crore for the half year ending September 30 under review.

Revealing the bank’s future plans, Mr Khan said anywhere banking would be launched to begin with in Srinagar, Jammu, New Delhi and Mumbai by March 2000. "We have entered into an arrangement with the Indian Banks Association to share the ATM network which would allow us to spread our ATMs", he added.

The bank intends to computerise its entire business, if not all its branches, by the end of fiscal 2002. This would form part of its drive to reduce its administrative expenses to below ten per cent of the total business by the end of this fiscal from the current 10.15 per cent.

Belgium machinery has been imported and is being installed to start swift services for fund transfers by the end of this fiscal. "It will transfer money from anywhere in the world in one day. It will help international transactions of products and services."

With cost of funds as low as 6.9 per cent and a net worth of Rs 470 crore, the bank would invest heavily in infrastructure and increase its advances.

The bank already has blue chip clients like Reliance Industries Limited, Kirloskar, Hindujas and Finolex and public sector companies like IOL, Indian Airlines and JNFC.

Finally, the bank has targetted to increase its total business turnover of Rs 12,000 by march 2000 and Rs 15,000 by its next fiscal, Mr Khan said. (UNI)

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