The
financial year of this company used to be from January to December, for
convenience this was changed to April to March. So the accounts and balance
sheet were prepared for a year and a quarter for the period from 1.1.64 to
31.3.65. During this time the company made a profit of Rs. 40 lakhs and 34
thousand. However the next year the profit margin dropped sharply to Rs. 16
lakhs and 92 thousand. In the meantime, the government declared that instead of
using metals that had to be imported from abroad, which were expensive,
wherever it was possible and scientifically viable, aluminium should be used;
over time this became an order and the law. As a result wherever conductors of
copper wire were used A.C.S.R conductors made from pure aluminium or aluminium
mixed with steel were now employed. As the demand for these conductors
increased, the company requested permission from the Central Government to
increase its annual production from 3,000 to 7,500 tons. To manufacture these
different types of aluminium conductors, the company requested financial aid
from the Industrial Credit and Investment Corporation to produce the necessary
aluminium rods, which was granted to them. In addition plans to manufacture
enamelled copper wires were also in the final stages.
During
1966 –’67, good quantities of both these types of aluminium conductors were
sold. With the promising launch of exports in this year, material worth Rs. 3
lakhs, 44 thousand was exported. At the same time the company also obtained
permission to manufacture tungsten carbide dyes.
During
the year 1967-68, the company experienced a loss of Rs. 35,000. During this
time there was a wave of depression in the engineering industry. The output was
decreasing. However, despite this the sales increased from Rs. 3 lakhs, 12
thousand to Rs. 6 lakhs, 40 thousand; i.e. the sales more than doubled. One of
the reasons why the sales more than doubled was that due to stiff competition
the tendency was not to stock material, but rather to sell it and convert it
into cash. As a result even though the
sales doubled the company had to incur a loss. It would have been possible to
come out of this situation, but due to the fact that the five year plan of the
Electricity Board was postponed, the board did not receive any money, so they
withdrew the orders or postponed taking delivery. As a result, the money could
not be recovered, even though the material was ready for delivery.
During
this year the company got export orders worth Rs. 4.5 crores and an order for
enamelled copper wire worth Rs. 40 lakhs from Czechoslovakia.
During
this year, on 25th June, 1968, Ramjibhai’s youngest son,
Chandravadan, was appointed as an additional director in the company.
1968-69: During this year,
the loss increased to Rs. 18 lakhs and 61 thousand. From 13th
December, 1968 M/s Ashok Trading Company was appointed as the sole selling
agent for ‘Jaipur’ meters in Rajasthan.
On
the 3rd April, 1970, when the managing agency of M/s Punamchand
& Brothers was terminated as per the rules of the Central Government, it
was decided to run the company through a council of directors.
In
this year, like last year, the sales increased and reached Rs.5 lakhs and 35
thousand, but the company still incurred a loss as the effect of the trade
depression was still the same as before. In addition they had still not
received directions from the Electricity Board, to supply the material ordered
by it.
Around
this time, the Central Government set up a corporation for rural
electrification. This led to expectations of an increase in demand for the
company’s products, especially conductors and meters. Depending on this, the
company planned to increase the monthly output of meters from 15,000 to 50,000
units.
Against
export orders worth Rs. 4.5 crores the company had received last year, they had
supplied material worth 2 crores, 48 lakhs. In addition, they also received
some more orders.
During
this year the company started to manufacture small dye-cast toys, like jeeps
and lorries.
In
this year negotiations were also started for a technical collaboration to
manufacture meters in Malaysia.
1969-’70: During this year
the sales also increased from Rs. 5 lakh, 35 thousand to reach Rs. 6 lakhs, 33
thousand. Despite this the losses increased from Rs. 18 lakhs, 61 thousand to
Rs. 35 lakhs, 82 thousand. The main and most important reason for this was that
the tide of the trade depression had not ebbed. The price of the meters was
quite low, as it had been fixed beforehand. Further, there was a strike in the
factory due to problems related to the recommendations of the Engineering Remuneration
Board in Rajasthan, as a result of which the output from the factory fell. Due
to the fact that the recommendations of the Electricity Board were accepted,
the wages of the workers increased and on the other hand the prices of the raw
materials, especially aluminium, increased exponentially.
The
price increased from Rs. 5,700 a ton to Rs. 6,850, i.e. an increase of Rs.
1,150 per ton in the case of aluminium wire bars and from Rs. 2,500 to Rs.
3,600, i.e. an increase of Rs. 1,100 per ton in the case of steel wire.
In
this year the company exported goods worth Rs. 3 crores and 32 lakhs.
Due
to the Monopolies and Restrictive Trade Practices Act (1969) and other public
notices, it became difficult for such large companies to expand their
activities and production.
Welcoming the leader of Sudan’s Board of Representatives, Sayya Hassabai Mohammed Ahmad.
During the visit of the Board of Representatives from Iraq to Kamani Metals and Alloys Ltd. in February 1968.
The leader of the Board of Representatives from Malaysia, Abdul Kader, during his visit to Kamani Engineering Corporation in July, 1968.
Welcoming the King of Malaysia, Zainal at a dinner in his honour in November 1968.
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