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

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Carew and Company

The government has approved foreign collaboration with Starcosa of West Germany as also the import of capital goods required for the project. Application has been made to the financial institutions for loans to meet the company's financial needs. Meanwhile, FACOR has fared poorly during 1986-87 with lower gross profit of Rs 7.88 crore against Rs 9.82 crore in the previous year despite a higher turnover of Rs 147.72 crore against Rs 135.39 crore. The erosion of profit margins is attributed chiefly to severe power cuts upto 60 per cent in AP during April-June 1987 and substantial increase in wages and other benefits to employees. With depreciation requiring a larger provision due to change in the rates of depreciation as per the Finance Act, 1987 and addition to fixed assets, net profit dwindled to Rs 74 lakh from Rs 424 lakh of 1985-86. Dividend has been slashed to a mere 5 per cant from 15 per cent paid last year. The distribution is covered 2.64 times against 5.11 times previously.

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