The Hindu : Business : SPIC improves performance

Online edition of India's National Newspaper
Wednesday, Jun 29, 2005

Business

Business

SPIC improves performance

Special Correspondent

Benefits from FRN re-issue

CHENNAI: Southern Petrochemical Industries Corporation Ltd. (SPIC) said that it had returned to profit zone after three years of loss. The company reported a profit of Rs. 9.74 crore for the year ended March 2005 against a loss of Rs. 9.41 crore in the preceding year.

In a release, Ashwin Muthiah, Vice-Chairman and Managing Director, said, "This is clearly a milestone year for the company and should be the harbinger of better performance in the years to come.''

The revenue had increased from Rs. 1,508 crore in 2003-04 to Rs. 1,917 crore in 2004-05. Interest charges claimed Rs. 180.63 crore (Rs. 48.95 crore) and depreciation Rs. 42.28 crore (Rs. 41.25 crore).

The floating rate notes (FRNs) amounting to $120 million, issued in 1996 and restructured in 2001, were further restructured and re-issued at a discount.

This saw conversion of one portion into rupee notes. The net benefit (reduction in liability) of the restructuring of FRNs was to the tune of Rs. 212.54 crore.

<167,3p,1>This had been accounted in the quarter ended September 30, 2004. This had resulted in the company reporting profit for the year under review.

In view of the case pending before the Madras High Court, the company had not made any provision for the accumulated net deferred tax liability up to March 2001 amounting to Rs. 113.89 crore.

Printer friendly page
Send this article to Friends by E-Mail

Business