MUMBAI, May 7: The directors of Maharashtra Scooters have recommended a bonus issue in the ratio of 1:1. The company will have to capitalise a sum of Rs 5.71 crore from the reserves for the bonus issue. Besides, the company has maintained the dividend at 40 per cent for the year ended March 1997.

The company registered a 22 per cent increase in the production of scooters from 1,26,620 during the previous year to 1,54,356. Sale of scooters went up by 19 per cent from 1,26,269 to 1,50,036 during the year. Sales and other income recorded an increase of 21 per cent over the previous year from Rs 241.70 crore to Rs 293 crore. Other income during the year, however, was lower at Rs 15.50 crore compared to Rs 20.99 crore as certain non-recurring income which was there in the previous was not earned during the year.

The gross profit is however, slightly lower at Rs 25.08 crore (Rs 26.18 crore). After depreciation of Rs 1.13 crore (Rs 0.80 crore) and taxation of Rs 8.20 crore (Rs 9 crore), the net profit is also slightly lower at Rs 15.75 crore against Rs 16.38 crore. The proposed dividend will absorb Rs 2.29 crore (same) and Rs 0.22 crore has been provided for dividend tax. The balance surplus of Rs 13.42 crore (Rs 13.98 crore) has been transferred to general reserve.

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