Heavy Mechanical Complex (HMC) incurred an after-tax loss of Rs 119.660 million on June 30, 2003 that is below the previous year's after-tax loss which was Rs 161.844 million.
According to 'Experts Advisory Cell's annual report of 'Performance Evaluation of Public Sector Enterprises', HMC had high financial cost on account of heavy indebtedness to bank and financial institutions.
HMC' s workload at the unit remained much below the desired level due to low pace of industrial activities in the country and overall economical and market condition continued to remain uncertain.
Sources told Business Recorder that local and foreign loans have been restructured against HMC in order to reduce the financial burden on the unit.
Resultantly, overall market for the engineering industry remained unfavourable and the unit has registered lower capacity utilisation, low turn over which could not meet fixed overheads. The unit therefore reported losses in the recent past.
According to Ministry officials, saturation of local market for conventional products specially cement, and sugar plants has highly affected the unit, which however is getting orders for spare parts of these plants.
Ministry of Industries and Production's report shows that the major increase in prices was noted in power plants, non ferrous castings and iron castings.
HMC' s products are steel ingots, forgings (press hammers), cast iron non-ferrous castings, steel castings, grinding media, sugar plant and equipment, boilers, cranes, road rollers, cement plants and components, power plants, chemical plants, railway axles, asphalt plants, LPG tanks and other products.
Comments
Comments are closed.