In addition to selling its stake in these two companies, the company also sold its fibres business during the year.

The director's comment to the annual report for the year to March 31, 1998, says that the divestment in Zeneca Agro and Nalco Chemicals was planned to garner resources for the company's expansion plans.

ICI India posted a turnover of Rs 753.35 crore for the year to March 31, 1998, against Rs 694.60 crore in the previous year. The profit after taxation during 1997-98 was Rs 50.51 crore against Rs 42.06 crore in 1996-97.

The company's Rs 753.35crore turnover includes an other income component of Rs 39.74 crore during 1997-98.

The interest (net) payout has gone up by 48.93 per cent during 1997-98 to Rs 20.12 crore against Rs 13.51 crore in 1996-97. The interest (net) payout has increased on other loans by 34.14 per cent to Rs 16.46 crore from Rs 12.27 crore in 1996-97.

According to ICI India's latest annual report, the company entered into an agreement with the UK-based Zeneca Ltd for the sale of its 49 per cent stake in Zeneca ICI Agrochemicals Ltd.

During 1997-98, ICI received Rs 19.74 crore from Zeneca Ltd as advance against the sale of these shares. ICI's total investment in Zeneca was Rs 13.48 crore.

Zeneca has obtained the necessary approval from the FIPB but the Reserve Bank of India's approval is still awaited.

ICI had also entered into an agreement with the US-based Nalco Chemicals, to sell its 40 per cent stake in Nalco Chemicals India Ltd. ICI received Rs 22.43 crore in 1997-98 for the sale of its stake against its investment ofRs 75 lakh in Nalco. The notes on the balance sheet says that ICI sold 14 per cent of its stake in Nalco during 1995-95 and again 11 per cent in 1996-97.

US-based Nalco Chemicals has obtained permission of the FIPB but the RBI is yet to clear it. The proceeds from the sale have been shown under liabilities.

With the RBI approval expected shortly, the company will be registering a profit from the sale of these stakes which together is worth Rs 42.16 crore. This will be incorporated in the accounts for the year to March 31, 1999.The company's annual report shows that the company also sold its fibres undertaking business for Rs 2.63 crore.

The cost of reorganisation and product rationalisation was Rs 4 crore in 1997-98 against Rs 4.33 crore in the previous year. The company has written back an excess provision of Rs 71.62 lakh on account of a selective voluntary retirement scheme during 1997-98.

FII investments in equity to be encouraged

ICI India Ltd, which will be placing before itsshareholders a special resolution to encourage investment by foreign institutional investors in its equity up to a ceiling of 30 per cent of the total equity. This will be done the annual genarl meeting on July 23 this year.

The explanatory statement to the special resolution states that the ICI board believes that "it is desirable to encourage FIIs to invest in the company's equity share capital to facilitate foreign portfolio investment and thereby increase foreign exchange inflows into the country".

The company has signed an agreement with National Securities Depository Ltd for dematerialsing its shares, according to the director's report. This will help speedy risk-free paperless trading in the company's shares, the report said.