Starsource Multitrade (506365) Q4 97/98 earnings summary

Executive summary

• Factory operations were suspended under a lockout effective 28 November 1997; the lockout continued through year-end. The reported loss for the year was Rs. 83,23,334 before tax.

• Discussions to lease or license part of the plant and machinery to other chemical manufacturers were at an advanced stage.

Financial highlights

• Net sales, inclusive of excise duty and sales tax, were Rs. 15,52,630 versus Rs. 5,21,562 in 1996-97; miscellaneous income was Rs. 47,31,662 versus Rs. 1,21,95,353.

• Gross loss was Rs. 68,03,119 versus gross profit of Rs. 16,48,590; depreciation was Rs. 15,20,215, resulting in a pre-tax loss of Rs. 83,23,334.

• Loss after tax was Rs. 82,93,334; after the prior-year balance, Rs. 52,42,122 was carried to the balance sheet.

Outlook and guidance

• Leasing or licensing part of the existing plant and machinery was being explored, with prospective chemical manufacturers identified and negotiations advanced.