Godrej Soaps, which is mainly a manufacturer of soaps, toiletries, detergents and chemicals, achieved a 24 per cent growth of its brands in value terms. It is in the black with a Rs 60.99 crore net profit in fiscal 1999-2000 on a Rs 787.44 crore turnover. It had posted a net loss of Rs 29.93 crore in the previous fiscal on turnover of Rs 909.81 croreAccording to the auditor's report, the company made a Rs 6.60 crore provision on loans of Rs 12.93 crore granted in connection with a proposal on property development.

The company says that loans of Rs 8.11 crore were given to a company on which Rs 4.82 crore of interest is due that has not been repaid as per the terms set out.The issue of the property is now before the courts and Godrej Soaps has made a provision of Rs6.60 crore on the interest accrued on the loans since April 1, 1997. The company feels that the balance amount is recoverable in due time.

However, the auditors say, "We are unable to form an opinion whether the diminution in value of investments is other than temporary".It has also granted Rs 34.88 lakh interest free advance to a company, the auditors have noted.

Intercorporate deposits of Rs 21.37 crore were advanced to companies that either defaulted in interest payment or have not repaid the principal. The management says that ICDs have been given to Godrej Photo-me Ltd, Hybrigene Biotechnology Pvt Ltd and Swadeshi Detergents Ltd. All these companies have huge accumulated losses and "have not repaid the deposits/interest thereon on the due dates" the auditors said. However, the company adds that since long term interests are involved and keeping in mind the proposed restructuring of operations, the deposits are considered good and no provision has therefore been made.

The company improved itsperformance in fiscal 1999-2000 over that of the previous year, by cutting down on costs and debt repayment