LIC Mutual Fund

by a net loss of Rs 1.80 crore in
According to the directors, the setback was caused by paucity of funds. The repayment of fixed deposits have considerably eroded the availability of working capital, thereby hampering the development of business. In order to augment working capital, the company proposes to issue rights shares to the existing shareholders of the company in the ratio of one share for every two shares held. The setback to profitability was pronounced with a deterioration in the expenses to sales ratio from 0.67:1 in 1988-89 to 1.03:1 (both annualised) in 1989-90. The overall return on investment from an already low rate of 2.68 per cent worsened further and reached a negative 5.61 per cent (both annualised) in 1989-90.