Mounting Losses

Mounting Losses Hansavivek ROHTAS INDUSTRIES has suffered the worst-ever setback in 1982-83 with a staggering trading loss of Rs 9.83 crore, against a loss of Rs 55 lakh in the previous year, following a decline in sales from Rs 88.11 crore to Rs 76.65 crore. With the fresh loss, accumulated deficit has mounted up to Rs 12.93 crore to stand against share capital of Rs 6.05 crore and reserves of Rs 93 lakh. No depreciation has been provided since 1977-78 and arrears on this account aggregate Rs 6.62 crore. Directors attribute this disappointing outcome mainly to the decision of the Bihar State Electricity Board (BSEB) to completely cut off power supply to the Dalmianagar complex from November 5, 1982 on grounds that the company had not paid dues claimed against fuel surcharge, imposed with retrospective effect from 1979-80, amounting to over Rs 3 crore. After prolonged negotiations at the instance of the State government it was decided to pay the dues in instalments, and, power supply was resumed after 5 months on April 4, 1983. During the period of total power cut, the company sustained partial operation of its cement and vanaspati units through its own meagre generation of power, which too was affected due to supply of coal with high ash content. Moreover, the breakdown of a steel turbine further hampered production. The company laid off its labour at Dalmianagar from November 5, 1982 and also served a notice to close down the paper and vanaspati units. At the State government's insistence, the management withdrew the closure notice as well as the lay off. Again, the company declared a lay off in the paper and vanaspati divisions on October 23, 1983 due to meagre supply of power by BSEB. This lay off was lifted 4 days later OP an assurance by the State government that the power supply would be im proved to at least 12 MW for the Dalmianagar complex. Workmen however continued their agitation even after the lifting of the lay off. They raised various demands and absented from work. A violent section of the workers assaulted senior officers and con- tinue to threaten loyal workers. The State government prohibited continuance of the strike on November 13 last. During 1982-83, the company's production of cement increased to 2,65,400 tonnes against 2,48,000 tonnes in 1981-82, but the output of all the other products declined