Gramophone Co To Seek Nod For Share Buy-Back

The R P Goenka-controlled Gramophone Company of India (GCIL) will seek shareholder-approval to buy back ordinary shares up to five per cent of its paid-up capital at its forthcoming annual general meeting (AGM).

The resolution for buying back shares, which will be tabled at the AGM scheduled for October 8, has been proposed in anticipation of the government's decision to introduce buyback.

GCIL's resolution, if approved, will be operative for 15 months from the date of passing of the resolution or such other time limit as laid down by the law.

Meanwhile, old share certificates lodged with the company for transfer are being replaced with new certificates to minimise double handling.

For the financial year ended March 31, 1998, the board of directors have recommended a dividend of 10 per cent despite the difficult economic conditions. Due to the reimposition of central excise duty on audio cassettes, the company's margins were under pressure. However, the duty has been withdrawn in the last budget.

The company completed the modernisation and expansion of its Dum Dum unit during the year under review.

With the completion of its modernisation plan, the unit is now equipped with digital recording and duplicating machines and has an annual capacity of 49 million cassettes.

According to the corporate review 1998-99, the expiry of the licensing agreement with EMI from September 1997 has had no impact on overall sales volume. Besides the company's arrangements with Zomba and Toco, a new licensing arrangement was signed with Telstar.

The company's sales increased by 22 per cent through innovative marketing. Sales volume of new Hindi films music more than doubled.

Significant growth was achieved in the old Hindi film music category through the release of branded products such as `50 Glorious years of Music', `Legends' and `Golden Collections'.

The company's export business, under its wholly-owned subsidiary RPG Music International, released several new compilations during the year.

A new series titled `Revival' was also launched.

Gramco Films, a division of Gramco Music Publishing, involved in the production and distribution of Hindi and Bengali films, launched two new film projects, `Godmother' in Hindi and `Hathat Brishti'.