Starsource Multitrade (506365) Q4 10/11 earnings summary

Executive summary

• Manufacturing remained suspended; activity focused on share trading and other investments while new business opportunities were explored. Income rose to Rs. 363,063 from Rs. 101,936, and profit after tax was Rs. 35,150 versus a prior-year loss of Rs. 511,936.

• Accounts were prepared on a going-concern basis despite suspended operations; the auditor highlighted unprovided investment diminution and a doubtful deposit, alongside the going-concern assumption.

Financial highlights

• Income was Rs. 363,063 in FY2010-11 versus Rs. 101,936 in FY2009-10; total expenditure was Rs. 215,176 versus Rs. 534,682.

• Profit before and after tax was Rs. 35,150, compared with a loss of Rs. 511,936 in FY2009-10; depreciation was Rs. 112,737 versus Rs. 79,190.

• Total assets and liabilities were Rs. 71.90m, up from Rs. 67.61m; investments were Rs. 28.31m versus Rs. 19.78m, while accumulated losses were Rs. 30.23m.

Outlook and guidance

• New business avenues were being explored; surplus funds were held in liquidatable investments to meet potential capital requirements for a new business.

• Management cautioned that forward-looking expectations may differ materially from actual results and undertook no obligation to update them.