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Arpan Mukherjee
Calcutta, July 15: Tata Timken Ltd saw its net profit drop by 46 per cent in the year to March 31, 1999, despite a 30 per cent rise in income from other sources. Sales revenues declined in 1998-99 on the previous year as it pushed up trade discounts marginally.
Tata Timken, which is scheduled to change its name to Timken India Ltd following the acquisition of Tata Iron & Steel Co's stake by US partner Timken Co, has noted in its latest annual report that the year ``was not favourable to the company due to the continued recession in automobile industry.'
It is one of the top manufacturers of standard bearings used in the automobile industry. The resultant downtrend in the bearing industry led to a 1.4 per cent drop in Tata Timken's sales.
Tata Timken's sales turnover dipped to Rs 143.41 crore in the year to March 31, 1999, from Rs 145.03 crore in the previous year. Trade discounts increased marginally to Rs 3.96 crore from Rs 3.58 crore in 1997-98.
Net profit dipped to Rs 7.28 crore from Rs 13.43 crorein the previous year. Accumulated loss declined to Rs 12.69 crore in 1998-99 from Rs 19.97 crore in the previous year.
Other income component increased to Rs 5.97 crore in 1998-99 from Rs 4.61 crore in the previous year. Other income consists of Rs 1.50 crore on account of net foreign exchange differences, Rs 1.42 crore commission, and Rs 1.13 crore on interest earned on short-term deposits and delayed payment calls.
According to its director's report, the company reduced interest charges by about 20 per cent but a depreciation charge of 19 per cent and an unfavourable sales mix caused net profit to decline by about 46 per cent.
On the export front, earnings in foreign exchange dipped by 29 per cent in value of exports to Rs 31.22 crore to March 31, 1999, from Rs 43.72 crore the previous year. Earnings in foreign exchange include an agency commission component of Rs 1.33 crore in 1998-99 up from Rs 60.47 lakh in the previous fiscal.
The company has not provided for contingent liabilities of Rs 1.33crore during the year to March 31, 1999.
Batliboi replaces Billimoria as auditor
Chartered accountant firm SR Batliboi & Co will replace SB Billimoria & Co as Tata Timken's statutory auditors. At the forthcoming 12th annual general meeting on July 26, 1999, the company will seek its shareholder's approval in appointing SR Batliboi.
According to the director's report, SB Billimoria & Co, whose term expires at the conclusion of the ensuing AGM, has not sought re-appointment.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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