ECONOMYNEXT - Sierra Industries (Pvt) Ltd, a unit of publicly traded Sierra Cables Plc, which makes water pipes, says it is focusing on larger projects, after making losses in the retail market.
"As a strategic move, the company is now focusing on the institutional and project market instead of the competitive retail market," shareholders were told in the annual report.
"The company is in the process of the initialising the preliminary engagement work for the supply of PVC pipes and fittings to upcoming major projects."
Sierra Industries which manufactures uPVC (unplasticized Poly Vinyl Chloride) pipes, had won a 5.5 million dollar order to supply a foreign contractor in the Attanagalla Water Supply Project.
"While production has commenced, the delivery will take place only during the next financial year," Managing Director Shamindra Panditha told shareholders.
"The directors are of the view that the company would be able to generate sufficient revenue in the ensuing financial years, where by accumulated losses could be reduced gradually,” the annual report said, referring to the Attanagalla project.
Sierra Industries accounts said it is facing serious loss of capital and the auditors KPMG had also raised a going concern a with assets falling below liabilities.
Sierra Industries had accumulated losses of 276.2 million rupees up to end-March 2018. The firm started production in the 2013/2014 financial year.
As part of a restructuring process, a 119.6 million rupees owed to the parent had been converted to equity, while some payables had been converted to a loan term loan. (Colombo/Sept04/2018)