CARONA-Collaboration for Sports Shoes

HINDOOSTAN SPINNING Stagnant Domestic Demand HINDOOSTAN SPINNING AND WEAVING MILLS has earned a lower gross profit of Rs 2.14 crore for 1987-88 against Rs 2.59 crone in the previous year despite higher sales of Rs 79.52 crore against Rs 76,40 crore. Net profit is Rs 54 lakh (Rs 153 lakh). After providing Rs 2.04 crore for prior period expenses and adjustments consequent upon the accrual basis of accounting under the Companies (Amendment) Act, 1988, there is a loss of Rs 1.49 crore. Together with the loss brought forward from the previous year, debit balance carried to the balance sheet mounted up to Rs 4 crore. The directors point out that although more than three years have passed since the announcement of the new textile policy the hopes of revival of the textile industry are belied on several counts. The industry continued to suffer from substantial over-capacity, especially due to unbridled growth in the decentralised sector. Demand for fabrics in the domestic market remained stagnant due to severe drought conditions in certain parts of the country. The cost of production, on the The Week's Companies other hand, continued to rise. The textile industry continues to languish and is passing through unprecedented demand recession.