Chrome Silicon Limited, a manufacturer of ferro alloys, has reported a net loss of Rs 214.50 lakh for the quarter ended June 30, according to the company's unaudited financial results. This loss represents a significant improvement compared to the Rs 657.00 lakh loss reported in the same quarter of the previous year.

Financial Performance

The company's sales income saw a substantial decline, dropping to Rs 23.75 lakh from Rs 3,508.77 lakh in the corresponding quarter of the previous year. Total expenses for the quarter stood at Rs 240.94 lakh, with depreciation and amortization expenses accounting for Rs 169.65 lakh of this amount.

Operational Update

In a significant development, Chrome Silicon Limited has temporarily suspended operations at its Ferro Alloys manufacturing facilities effective May 30. The company cited significant market fluctuations as the reason for this decision. Management stated that they will continue to closely monitor market conditions and take appropriate steps to resume operations when deemed suitable.

Auditor's Observations

The company's auditors, Pavuluri & Co., issued a qualified opinion in their limited review report, highlighting several concerns:

1. Non-compliance with Ind AS 19 (Employee Benefits): The company has not made provisions for future gratuity and leave encashment payments.
2. Uncertainty over Rs 13.34 crore in interest-free loans and advances.
3. Lack of physical verification of inventories and inadequate inventory records.
4. Unconfirmed trade payables amounting to Rs 10.63 crore.
5. Non-compliance with the scheduled physical verification of Property, Plant and Equipment as required by Ind AS 16.

Financial Position

As of June 30, Chrome Silicon Limited reported total assets of Rs 24,935.79 lakh and total liabilities of Rs 22,647.68 lakh, resulting in a net worth of Rs 2,288.11 lakh.

The company's Board of Directors approved these unaudited financial results at their meeting held on August 14. Chrome Silicon Limited continues to face challenges in the current market environment, and the temporary suspension of operations underscores the difficulties in the ferro alloys sector. Investors and stakeholders will be closely watching the company's efforts to navigate these market fluctuations and its plans for resuming operations.

Life Insurance Corporation of India (LIC), the country's largest insurer, has reported a substantial increase in its fourth-quarter profits, surpassing market expectations. The insurance giant also declared a dividend, bringing cheer to its shareholders.

Profit Surge

LIC's consolidated net profit for the fourth quarter jumped to ₹190.40 billion, marking a significant 38% increase from ₹138.00 billion in the same period last year. This impressive growth outperformed analysts' estimates of ₹148.00 billion, showcasing the company's strong financial performance.

Revenue and Dividend

While the company's revenue for Q4 slightly decreased to ₹1.48 trillion from ₹1.53 trillion in the previous year, it met market expectations. In a move that will please investors, LIC's board has recommended a dividend of ₹12.00 per equity share.

Value of New Business (VNB) Performance

LIC reported a Value of New Business (VNB) margin of 17.60% for the fiscal year, indicating the profitability of its new business. The VNB for the entire fiscal year stood at ₹100.10 billion, reflecting the company's ability to generate value from its new insurance policies.

Quarterly Business Metrics

The table above shows key quarterly metrics, indicating some challenges in new business growth. The Annualized Premium Equivalent (APE) for Q4 decreased by 3.00% year-over-year, while the New Business Premium saw a more significant decline of 9.40%. The quarterly VNB also experienced a 13.90% reduction compared to the same quarter in the previous year.

Conclusion

Despite facing headwinds in new business growth, LIC has demonstrated strong profitability in its latest quarterly results. The substantial increase in net profit, coupled with the announcement of a dividend, paints a positive picture for the insurance behemoth. However, the decline in new business metrics suggests that LIC may need to focus on stimulating growth in its core insurance operations in the coming quarters.