Starsource Multitrade (506365) Q4 09/10 earnings summary

Executive summary

• Manufacturing remained suspended throughout FY10; operations centered on share trading and other investments, while management continued exploring viable diversification opportunities.

• Miscellaneous income fell and the year ended in a loss; auditors highlighted going-concern, investment-valuation and related-party loan concerns.

Financial highlights

• Income was Rs 101,936 in FY10 vs Rs 412,823 in FY09, entirely from miscellaneous income; expenses rose to Rs 534,682 from Rs 316,092.

• The profit-and-loss account reports a FY10 loss of Rs 511,936 vs Rs 84,829 in FY09; the Directors’ Report and MD&A state a loss before and after tax of Rs 5.67 lakh vs prior-year profit of Rs 0.85 lakh.

• The EPS note lists a PAT loss of Rs 566,915 for FY10, while showing basic and diluted EPS of Rs 0.378; FY09 figures are loss Rs 84,829 and EPS Rs 0.057.

Outlook and guidance

• The Board was exploring new business avenues and seeking a viable activity compatible with existing constraints; diversification had made no significant progress.