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Our Bureau

Kolkata, June 17

Balmer Lawrie & Co Ltd is expecting the Centre to appoint three independent directors to its board in three months.

Apart from meeting Clause 49 of the listing agreement, the appointment of directors will pave the way for the board to take investment decisions, including joint venture participation up to Rs 100 crore.

Having announced its plans to invest approximately Rs 100 crore in acquiring mid- or small-sized Indian companies in the areas of logistics and tour operation, and setting up a Rs 15-20-crore greenfield grease manufacturing and lube blending plant in Indonesia and others almost a year ago, Balmer Lawrie is still waiting to implement the same.

The Central PSU now has four full-time directors and one Union Government nominee on the board and requires at least three independent directors to enjoy the benefits of a mini-Ratna company.

A search committee of the Public Enterprises Selection Board (PESB) recently short-listed the candidates and is in the process of recommending them for final approval of the appointments committee of cabinet.

“We are expecting the process to be over in the next three months,” the Managing Director, Mr S.K. Mukherjee, told newspersons here.

Though the company maintains that the investment plan is held up due to many reasons, Director Finance, Mr K. Subramanyan, admits that the inability of the board to take major investment decisions may be one of the issues coming in the way of implementing the same.

The company has closed the fourth quarter of 2007-08 with 46 per cent increase in net profit to Rs 20.75 crore compared with the corresponding period of the previous fiscal.

Turnover increased by 20 per cent from Rs 344 crore to Rs 414 crore.

The company’s net profit during 2007-08 has gone up by 24 per cent from Rs 70 crore to Rs 87 crore, and turnover increased by 14 per cent from Rs 1,377 crore in 2006-07 to Rs 1,576 crore.

Riding on improved performance, the board of directors on Monday recommended 170 per cent dividend for 2007-08.

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