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

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increase in interest charge;, depreciation provision and cost of inputs took their toll on the company's bottomline in 1992-93. Though figures for the two years ended March 1992 and March 1993 are not comparable (previous period being for 18 months), the company's net sales increased by 25 per cent on an annualised basis while operating profit rose by 18.6 percent. Higher recourse to lung-term funds in the form of non-convertible debentures has led to a rise in the percentage of debt to equity from a low of 19 per cent last year to 54.9 per cent in the current year. A sharp rise of 21 per cent in interest charges, however, led to decline in gross and net profit margins from 6 per cent and 4 8 per cent last year to 4 per cent and 2.3 per cent, respectively. The closure of the company's hard oil plant which was destroyed by fire last year added to the company's woes. The strong inflationary trends in the country coupled with fluctuations in international prices and the frequent changes of policy instruments in turn took their toll on the company's exports. The recessionary trends in the US and other parts of Europe also led to a 45 per cent (annualised) fall in export earnings.

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