A Texmaco Payout After Many Years

The K K Birla flagship Texmaco Ltd's sales turnover increased by 79 per cent to Rs 284.46 crore in the financial year ended March 31, 1997 as against Rs 157.21 crore the previous year.

The board of directors, which met yesterday to approve the audited results for the last fiscal, recommended a dividend of 15 per cent after several years of drought. Operating profit before interest and depreciation stood at Rs 14.85 crore on an equity capital of Rs 516.34 crore compared to Rs 6.60 crore the previous fiscal.

After providing for tax, including tax on dividend, net profit after interest and depreciation jumped to Rs 11.08 crore during the year under review as against Rs 56.32 lakh posted in the financial year 1995-96.

 

A sum of Rs 20 crore has been carried to the general reserve, and free reserves was pegged at Rs 51.80 crore.

The company's loss making division, Birla Textile Mills, has been closed down with effect from November 30, 1996, under the order of the Supreme Court, and is being relocated in Himachal Pradesh.

As per the order, workers who were not willing to shift shall be deemed to have been retrenched, and shall be paid compensation in terms of section 25-F(b) of the Industrial Disputes Act, 1947 along with one year's wages as additional compensation and gratuity. All those workmen who have agreed to shift will be given one year's wages as 'shifting bonus'.