ARVIND MILLS

Akhila V. Kisara

1999
Sales dropped because overall denim price decreased . Competition from China and domestic denim producers . Raw material (cotton) cost increased. Loss of Rs 50 crore but still paid dividends of Rs 7 crore.

2000
Sales increased by 34% Incurred a loss of Rs 271 crore Weak denim market Commissioning of new projects at Santej and Naroda because of which they had to take loan which resulted into huge financial charges and depreciation. Increased raw material cost naptha but cotton price was under control Change in stock shows a loss of 41 crore because of their method of stock evaluation. Thought of Debt restructuring

2001
Financial year has been extended by 6 months for implementation of Debt Restructuring . Debt BuyBack Rights issue of Rs 75 crore equity shares decision Debt Rescheduling extended tenure Loss of 499 crore

2002
Financial year for 6 months Profit of Rs 20 crore Implementation of Restructring Financial charges decreased. External factors support Demand in denim, raw material cost decreased Debt equity ratio dropped from 4:1 to 1.3:1