Fabric manufacturer and supplier Kuruwita Textiles has been able to marginally minimize its losses during the company’s first quarter ended June 30, 2011.
The accounts released to the Colombo Stock showed that the net loss during the period under consideration has come down to Rs.118 million from Rs.125 million in the corresponding period last year.
“The performance during the quarter has not been financially satisfactory with the negative performance of the previous financial year flowing through into the quarter under review.
We believe that the current financial year will be one of improvement and consolidation,” Kuruwila Chairman Ashrof Omar said.
“We believe that the current financial year will be one of improvement and consolidation. The company management will embark on a process of implementing a number of changes and improvements to the processes and operations, which we believe will impact on the company positively in the coming years,” he added.
The finance costs of the company have seen an increase from Rs. 4.4mn in Q1 2010/11 to Rs. 25.5mn during the quarter under review.
According to Omar, an investment into new machinery during the previous financial year by the company resulted in an additional expenditure of servicing debt which has been reflected in this increase.
“The company has also funded its short term working capital requirements through borrowings from external sources, which have also contributed to an increase in finance costs,” he said.
source - www.dailymirror.lk
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