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

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MODI ALKALIES-Higher Sales

EPW Research Foundation SYNTHETICS AND CHEMICALS which it engaged in the manufacture of synthetic rubber (SBR) and lattices of the butadiene- styrene type (also known as CR-S rubbers and lattices), styrene and butadiene saw a fall in it: profitability in 1992-93. The continued recession in the automobile industry affected offtake and the company's net sales fell by 2 per cent over the previous year. The government's liberal import policy of allowing duty-free import of SBR against advance licences to exporters of tyres added to the company's woes. Production was also lower at 33,371 mt (36,098 mt) of rubber and 522 mt (560 mt) of styrenated phenol while sale in volume terms fell from 35,320 mt of rubber and 64 mt of styrenated phenol in 1991-92 to 31,606 mt and 60mt, respectively. Increase in raw material cost and other operating expenses led to a 9 per cent fall in operating profit. Interest charges rose by 3.3 per cent while depreciation provision was higher by 18.4 per cent. However, the company managed to show a higher net profit mainly due to a higher non- Operating profit and a zero tax provision

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