However, the company, which makes the premium toilet soap Aramusk and the neem-based Margo, has lost its case before the central excise authorities on a demand of Rs 4.02 crore.

Earlier this year, Calchem had posted a 148.22 per cent jump in net profit to Rs 3.50 crore for 1997-98, from Rs 1.18 crore (Rs 1.41 crore annualised) for the 10-month accounting period to March 31, 1997. Sales declined marginally to Rs 38.58 from Rs 32.91 crore (Rs 39.49 crore annualised) in 1996-97.

The company, in which liquor giant Shaw Wallace & Co Ltd has a controlling interest, recorded a sharp rise in other income to Rs 1.22 crore from Rs 39.44 lakh (Rs 47.38 crore annualised) in the corresponding period of 1996-97, from rental income,provisions towards liabilities which were written back and interest income.

The central excise department has alleged that Calchem has not fully paid the differential excise duty of Rs 2.40 crore for the Calcutta factory for the period between June 1991 and March 31, 1995. Another excise demand of Rs 3.87 crore for the Chennai factory has been raised for the period between June 1991 and April 1998.

Hearing on the demands have been completed both at Calcutta and Chennai. uCalchem has noted in its accounts that the excise department has confirmed the demand of Rs 3.86 crore and has also levied a penalty of Rs 16 lakh for short payment of differential excise duty till April 30, 1998. The company has appealed against this.

Instead of making any provision for any voluntary retirement schemes in future to non-executive employees, it has earmarked a bank fixed deposit of Rs 50 lakh. The company estimates a liability of Rs 49.55 lakh towards payment of VRS likely to be incurred till the end of the year.

Thecost of VRS incurred during the year has been Rs 23.90 lakh which has been shown as expenses in the accounts.

Sundry debts of Rs 2.29 crore include Rs 2.10 crore due from Shaw Wallace & Co Ltd. The company had written off Rs 17.01 lakh during the year on account of bad debts, advances and deposits.