Question

some of the cotton mills have been closed down recently. why ?​

Answer 1

In recent times nearly 17 cotton mills are closed down in 11 months of duration.

The major reasons for this close down are

1. Financial problems. Ministry reports that there are no special schemes announced to support this mills.
2. Due to increase in cost of product no good sales
3. Due to no good sales the profit margin is very low.
4. insufficient working capital.

Answer 2

As many as 17 cotton mills have been shut sown in 8 states recently. The reasons for the shut - down of these mills are as follows:-

1) The mills faced financial problems due to inadequate working capital.

2) There was insufficient cash flow which made it difficult to run the mills.

3) The cost of the products increased immensely.

4) The profit margin of the cotton mills was very less.

5) Stressed assets was another major reason for the closing down of the cotton mills.