The ratio of other income to total income rose marginally from 3.06 per cent to 3.26 per cent during 1999-00.

Of the selected 325 big companies, the top 10 according to other income in 1999-00 were – Reliance Industries (Rs 917.45 crore), Bajaj Auto (Rs 405.06 crore), Telco (Rs 369.74 crore), Hindustan Lever (Rs 318.98 crore), Tata Power (Rs 181.33 crore), Larsen & Toubro (Rs 175.30 crore), Tata Chem (Rs 139.28 crore), Hindalco (Rs 138.65 crore), Mahindra & Mahindra (Rs 133.56 crore) and ITC (Rs 116.31 crore).

This study attempts to determine the trend of other income to total income for 325 big companies spanning 25 industries during 1999-00 and 1998-99. Of late, other income has started constituting a significant portion of the net profit of companies. Other income largely consists of profits through sales of fixed assets, trading operations in the stock market, accounting profit by writing back depreciation already charged, dividend receipts, insurance receipts, interest receipts and change of provisioning method for gratuity.

The top 10 according to the other income to total income ratio during 1999-00 were – Aban Loyd Chiles (36.58 per cent), United Breweries (22.53 per cent), Bharat Hotels (20.38 per cent), Swadeshi Mills (19.20 per cent), Thermax (18.50 per cent), Nelco (17.81 per cent), Global Boards (17.49 per cent), Zee Telefilms (15.93 per cent), GKW (14.85 per cent) and Continental Construction (13.72 per cent).

Among these companies, 146 reported a fall in the ratio of other income to total income, while 176 companies had a higher ratio in 1999-00.

The remaining three companies' ratios were the same in both the years.

A significant fall in ratio was observed in the case of Bharat Forge (2.09 per cent in 1998-99 to 0.42 per cent in 1999-00), Dalmia Cement (Bharat) (6.11 per cent to 3.72 per cent), Hyderabad Industries (6.17 per cent to 1.57 per cent), IDI (13.64 per cent to 4.79 per cent), Indian Organic Chemicals (21.70 per cent to 13.05 per cent), Jay Engineering (11.98 per cent to 3.64 per cent), SIEL (16.10 per cent to 4.31 per cent) and Zee Telefilms (24.37 per cent to 15.93 per cent).

The other income of Bharat Forge significantly declined by 76 per cent to Rs 2.44 crore in 1999-00 from a previous level of Rs 10.15 crore in 1998-99.

however, its total income rose by 20.2 per cent during the same period.A significant improvement in ratio in 1999-00 was noticed in the case of Aban Loyd Chiles (2.17 per cent in 1998-99 to 36.58 per cent in 1999-00), GKW (2.88 per cent to 14.85 per cent), Hughes Software System (1.93 per cent to 11.15 per cent), KSB Pumps (3.25 per cent to 11.31 per cent), Nelco (3.87 per cent to 17.81 per cent), Parry's Confectionery (2.12 per cent to 12.99 per cent), Thermax (8.19 per cent to 18.50 per cent) and United Breweries (13.01 per cent to 22.53 per cent).

The other income of Aban Loyd Chiles increased by 1843.7 per cent to Rs 41.40 crore in 1999-00 from a previous level of Rs 2.13 crore in 1998-99.

However, its total income rose by 15.2 per cent during the same period.A significant increase in other income during 1999-00 was observed in the case of Aban Loyd Chiles, Balaji Distilleries, Essel Packaging, GKW, Hughes Software Sys, Infosys Technologies, Jai Corporation, Nelco, Parrys Confectionery, Radico Khaitan, Super Forging & Steel, Techno Electric, Titan Inds, Vishnu Sugar and Zodiac Clothing.

A decline in other income in 1999-00 can be seen in the case of Bharat Forge, Essar Steel, Ferro Alloys Corpn, Flex Industries, Harrisons Malayalam, Hyderabad Industries, IDI, Jay Engineering, SIEL and Southern Petrochemicals.

The ratio of other income to total income for 25 industries showed an interesting picture. Out of 25 industries, 17 showed an improvement in other income to total income ratio in 1999-00. Industry-wise, the ratio increased for tea & coffee (2.85 per cent in 1998-99 to 4.72 per cent in 1999-00), food products (1.29 per cent to 1.55 per cent), pharmaceuticals (3 per cent to 3.2 per cent), other chemicals (2.88 per cent to 3.1 per cent), hotels (5.89 per cent to 7.37 per cent), tyres & tubes (0.59 per cent to 1.27 per cent), electrical goods (2.36 per cent to 2.65 per cent), computers (soft & hard) (1.48 per cent to 2.26 per cent), man-made fibres (0.90 per cent to 1.08 per cent), engineering others (2.81 per cent to 3.10 per cent), sugar & breweries (3.21 per cent to 4.6 per cent), auto & ancillerries (4.37 per cent to 4.61 per cent), paper & products (1.86 per cent to 3.12 per cent), electricity (6.16 per cent to 7.28 per cent), misc (2.51 per cent to 3.87 per cent), diamonds (1.05 per cent to 1.65 per cent),diversified (3.48 per cent to 3.57 per cent). The ratio of other income to total income of tea & coffee increased significantly during 1999-00. In the tea & coffee industry group, Tata Tea's other income increased by 191.6 per cent to Rs 48.06 crore from Rs 16.48 crore in 1998-99. However, its total income increased by 7.7 per cent only during the same period.

A downward trend in the ratio can be seen in the case of tobacco (2.75 per cent in 1998-99 to 2.4 per cent in 1999-00), cotton textiles (3.88 per cent to 3.43 per cent), cement (3.3 per cent to 2.29 per cent), fertilisers (2.38 per cent to 2.19 per cent), shipping (4.27 per cent to 3.46 per cent), iron & steel (1.81 per cent to 1.25 per cent), paints (1.69 per cent to 1.36 per cent) and aluminium (5.31 per cent to 4.47 per cent). In the aluminium industry, Indian Aluminium showed a significant decline in the ratio. The company's other income significantly declined by -54 per cent to Rs 5.50 crore from Rs 11.95 crore in 1998-99. Its total income marginally increased by 2.1 per cent to Rs 1,055.15 crore from Rs 1,033.59 crore in 1998-99. This was responsible for a decline in the ratio (other income to total income) for the aluminium industry during 1999-00.