The Hindu : Andhra Pradesh News : Singareni posts net profit after 27 years

Online edition of India's National Newspaper
Monday, Jul 12, 2004

Andhra Pradesh

Andhra Pradesh

Singareni posts net profit after 27 years

By Our Staff Reporter

HYDERABAD, JULY 11. The Singareni Collieries Company Limited (SCCL) has for the first time in 27 years entered the `net profit regime' in the last financial year.

The company authorities said the exact net profit would be finalised soon after the declaration of dividend.

Though the company had earned a profit of Rs. 80 crores after payment of dividend at 10 per cent in 2002-03, it could not enter the net profit regime on account of accumulated losses. This has been overcome in the last fiscal. Incidentally, the company disbursed the dividend for the first time in 2002-03.

The company was continuously running in losses except for a few years since 1976-77, so much so that it was even referred to the Board for Industrial and Financial Reconstruction (BIFR).

The SCCL is one of the few companies to come out of the clutches of BIFR. In recognition of its performance, the Federation of A.P. Chambers of Commerce and Industry presented the best all round performance award to the company last month.

Making a statement on the operations of the company, the Finance Minister, K. Rosaiah, told the Assembly last week that 25 projects with a capital investment of Rs. 3,635 crore was proposed to be taken up.

The performance of SCCL at a glance shows coal production in 2003-04 to the tune of an all time high 33.852 million tonnes (MTs) as against 33.24 MTs in 2002-03.

The despatches also went up from 33,368 MTs to 33,830 MTs. The equity of the company remained stable at Rs. 1,733 crore during the two years, while debt fell from Rs. 238 crore to Rs. 133.35 crore.

The average welfare expenditure per employee which was Rs. 14,402 in 1996-97 increased to Rs. 30,409 (111 per cent) in 2003-04.

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