VANAVIL DYES-Scope for Colour

growth in sales to a corresponding magnitude of growth in profits due to the pressure of costs. Raw material cost increased by 13 percent (annualised)during the year under review and employees' cost by 7 per cent (annualised). Other expenses which included the purchase of finished goods spurted by 23 per cent (annualised). Out of the sales of the company, over 70 per cent consisted of finished goods purchased from others, Therefore, the operating profits could record only a marginal increase of 3 pet cent (annualised) from Rs 3.80 crore in 1988-89 to Rs 3.12 crore in 1989-90. Net profits, in fact, showed a decline by 4 per cent on annualised basis from Rs 1,49 crore to Rs 1.14 crore.