Sales for the quarter, however, increased by 13.39 per cent to Rs 61.54 crore as against Rs 54.27 crore in the corresponding period last year.

During the quarter, 124 employees left the company after opting for the VRS, subsequent to the closure of the chemical production division at the Taloja factory. The proportionate share of the VRS expenses for this quarter has been debited accordingly, the company said.

Total expenditure and interest for the period stood at Rs 57.47 crore and Rs 99.39 lakh, while depreciation was higher at Rs 1.70 crore. Provision for taxation was Rs 65.02 lakh and has been taken based onanticipated profits for the current year. Other income almost doubled to Rs 1.02 crore from Rs 52.06 lakh in the previous year.

The company is in the process of achieving Y2K compliance in all the computerised and embedded systems. The company does not envisage any serious threat to its business activities due to the Y2K problem. The total cost of the Y2K compliance plan will be Rs 40 lakh. The company also has contingency plans in the event of a system breakdown/ failure due to the Y2K problem.