Starsource Multitrade (506365) Q4 04/05 earnings summary

Executive summary

• FY ended 31 Mar 2005 net loss widened to Rs.4,380,554 from Rs.693,715; manufacturing remained shut throughout the year amid obsolete plant and machinery.

• Management said manufacturing was unviable and was exploring sale, lease or disposal options to restore viability, subject to shareholder approval.

Financial highlights

• Total income was Rs.1,140, entirely reported as dividend income; total expenditure was Rs.4,061,252, including Rs.3,082,202 for employee remuneration and benefits.

• Depreciation was Rs.320,442; loss before and after tax was Rs.4,380,554, versus Rs.693,715 in FY 2003-04.

• Accumulated loss carried to the balance sheet reached Rs.29,871,151, up from Rs.25,490,597; shareholders’ funds remained Rs.66,414,738.

• Investments declined to Rs.34,009,061 from Rs.39,156,541; unsecured loans fell to Rs.2,116,976 from Rs.9,052,211.

Outlook and guidance

• No operating forecast was stated; management was evaluating projects that could involve sale, lease or disposal of all or part of the undertaking, with shareholder approval to be sought.