The company attributed the decline in net profit to higher prices for cotton (the company's major raw material) and oversupply situation in the polyester intermediates market.

The Bombay Dyeing board, which met in Mumbai on Monday, has recommended a dividend of Rs 3 per share. Net sales have plummetted to Rs 861 crore during the year ended March 31, 1999 from Rs 906.64 crore in the previous year, said a press release from Bombay Dyeing.

Gross profit (after interest but before depreciation, voluntary retirement compensation and taxation) was at Rs 73.76 crore against Rs 75.02 crore in the last year.

While interest for the year ended March 31, 1899 stood at Rs 71.35 crore against Rs 63.53 crore, the expenditure was lower at Rs 806.98 crore as compared with Rs 885.59crore.

Depreciation rose to Rs 49 crore from Rs 48.15 crore. The other income moved down to Rs 117.50 crore from Rs 91.09 crore, said the release.

Hit by lower price realisation, the company's dimethyl terepthalate (DMT) division has reported a lower turnover of Rs 325.40 crore against Rs 378.8 crore. This is despite the increase in the production to 1,55257 tonnes from 1,37,666 tonnes, said the release. The company expects the performance to improve in the current year with the petrochemical market showing signs of revival, the release added.

In an attempt to ward off the trade mark violators of Bombay Dyeing, a complaint has been filed with the additional chief metropolitan magistrate in Mumbai against a large number of small units manufacturing belt rolls, cuffs and collars.

Acting on a directive from the magistrate, the police raided the premises of BK Enterprises, Lower Parel and Manoj Enterprises, Chembur and seized consignemnts carrying the log of Bombay Dyeing. The company's annual generalmeeting is scheduled for February 23 in Mumbai, the release added.