ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Unfair Competition from Small Industry

'Unfair Competition' from Small Industry Hansavivek COLOVR-CHEM has experienced contraction of margins despite a higher turnover due to steep escalation in costs and under-utilisation of capacity. Sales have increased from previous year's Rs 36.42 crore to Rs 40.83 crore and gross profit has looked up marginally from Rs 6.47 crore to Rs 6.86 crore. Net profit is a shade lower at Rs 2.09 crore (Rs 2.12 crore). The directors have recommended a silver jibilee dividend of 3 per cent in addition to the normal distribution of 12 per cent. This is covered 1.45 times against 1.53 times previously. Turnover during the first four months of the current year has been less by about 5 per cent than during the corresponding period of the previous year, but what is more disturbing is that the company is faced with a further erosion in its already declining profit margins due to fresh increases in prices of pertoleum products, electric power, raw materials, etc.

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