Daewoo net falls by 98

In the second half loss before tax was Rs 18.11 crore compared to a profit of Rs 36.46 crore in 1995-96, the profit loss statement indicated. A company spokesman blamed 8220;poor and sluggish8221; market conditions for the disappointing results but expressed confidence in improving it next year.

The turnover, however, improved by 57.7 to Rs 943.72 crore as against Rs 598.33 crore in 1995-96.

Managing director of the company S G Awasthi said in a statement that low profits were 8220;because provision for depreciation has increased from rs 7.42 crore in the previous year to rs 15.89 crore in the current year.8221;

Depreciation went up by 114 . The total expenditure of the company went up 61 to Rs 691.4 crore in 1996-97 as against Rs 429.65 crore in 1995-96.

Interest outgo for 1996-97 at Rs 15.37 crore was 42.7 lower than Rs 26.86 crore for the previous year.

However, paid up equity share capital had zoomed to Rs 511.18 crore in the current year as against Rs 918.4 crore in 1995-96. This was due to the company coming out with a rights issue for Rs 45.91 crore in December 1996 where the Korean company raised its stake from 51 to 93 .