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

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SVADESHI MILLS-Sluggish Market

Sluggish Market SVADESHI MILLS COMPANY'S textile business continued to show a loss during the year ended March 1988 as the domestic cloth market remained sluggish. Moreover, a steep increase in the cost of cotton and higher costs of other inputs adversely affected the company's financial performance. The management made some capital transactions involving the sale of fixed assets. Taking account of a surplus of Rs 4.44 crore realised on the sale of fixed assets and a profit of Rs 74 lakh on sale of investments, the accounts show a gross profit of Rs 243 lakh against a trading loss of Rs 301 lakh in the previous 9-month period on sales of Rs 35.56 crore against Rs 23.38 crore. After depreciation, there is a net profit of Rs 147 lakh against a net loss of Rs 394 lakh last year. The profit has been utilised to bring down the accumulated deficit to Rs 2.42 crore. The company incurred capital expenditure of Rs 88 lakh during the year.

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