Problems of High Capital Cost Units

Problems of High Capital Cost Units.
Hansavivek COROMANDEL FERTILISERS' results for the year ended March 1985 are not strictly comparable with those of the previous financial year which comprised 15 months. In the event, turnover has been higher at Rs 124.69 crore against Rs 108.72 crore, but gross profit has amounted to Rs 13,43 crore against Rs 15.30 crore after providing Rs 9.48 crore for interest on borrowings against only Rs 4.10 crore. With depreciation claiming as much as Rs 7.71 crore (Rs 4.24 crore), net profit is halved at Rs 5.47 crore from Rs 10.91 crore. Dividend has been lowered by 5 points to 20 per cent and is covered 1.73 times as against 2.84 times previously.