Inter-corporate deposits (ICD) made by tea major Tata Tea Ltd have increased sharply to Rs 88.31 crore during 1997-98 from Rs 2 crore in 1996-97. This may have been prompted by the fact that the company would earn a higher interest from the ICD market.The ICDs are part of the Rs 118.79-crore advances made by the company, recoverable in cash or in kind and considered good in 1997-98. In the previous year, advances stood at Rs 35.35 crore.
Tata Tea, which registered a 25 per cent growth in total income to Rs 896 crore and recommended a dividend of 101 per cent last year, feels that the buoyancy in prices witnessed so far in 1997-98 will show a softening trend as the arrivals in the auctions increase. According to the company's annual report for 1997-98, the price levels this year would remain at levels lower than last year.
During the year under review, a special project was adopted for the company's South India plantation division for improving the performance of the weaker estates, which resulted in substantial improvement in the productivity of the south Indian crop. The company's trading in coffee through exports continued during the year at a reduced scale as the profit margin was not significant.
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The total exports of the company, at Rs 269 crore, has represented an increase of 24 per cent over the previous year's figure of Rs 216 crore. The export of black tea was much higher during 1997-98 in view of the new markets like Iraq, Pakistan, Russia and the UK.
Tata Tea's profit before tax and net profit, at Rs 144 crore and Rs 102 crore respectively, have represented a record 74 per cent improvement over the previous year figures. In view of the "unfortunate and distorted media coverage during the latter part of last year, the company has made its position quite clear. The annual report stated that it is one of the companies in Assam that has consistently refused to pay extortion money despite grave threats to the lives of its personnel and property.