Fast moving consumer products major Hindustan Lever has wiped out the Rs 24 crore of accumulated losses in its subsidiary Vashisti Detergents. However, the subsidiary's board has decided against recommending dividend.
Vashisti Detergents manufactures soaps, detergent cakes, detergent powders, fatty acid and linear alkyl benzene sulphonate (LABSA).
The losses were wiped out by transferring the accumulated carried forward loss of Rs 23.55 crore from the profit & loss account to the share premium account.
Vashisti Detergents came into HLL's fold following the acquisition of ailing Tata group company Tata Oil Mills Company.
During the year 2000-01, the entire outstanding 14 per cent Non-Convertible Debentures of Rs 10.45 crore were repaid before its normal redemption date and thus was able to retire a high cost debt.
For the period ended March 31, 2001, Vashisti Detergents has recorded a turnover (net of excise) of Rs 214.67 crore as compared with Rs 179.12 crore. Profit after tax increased from Rs 5.51 crore to Rs 6.12 crore.
During the year 2000-01, there was a decline in production of detergents bars due to sluggish demand resulting in lower capacity utilisation of the sulphonation plant which provides captive source for LABSA, the key ingredient in detergents.
