The company posted a net profit of Rs 44.84 lakh for the year to March 31, 1999, against a net loss of Rs 4.89 crore the previous year. However, sales turnover, continuing to dip for the third year in a row, was Rs 71.69 crore against Rs 80.42 crore in 1997-98 and Rs 114.99 crore in 1996-97.

Chairman SN Mathur told shareholders at the 79th annual general meeting here today that a capital restructuring is needed since the share capital and acumulated losses are almost equal.

A manufacturer of electrical switchgear and other equipment, Biecco Lawrie was referred to the Board for Industrial & Financial Reconstruction in 1992 after 20 years as a government company. The government became its owner in 1972 via the holdings of IBP and Balmer Lawrie, which had been nationalised.

A new management was brought in during 1991 since the company was continously in the red. In 1994, it diversified into petroleum products.

The next year, it became the first public sector undertaking to come out of the BIFR ambit. The Union government now holds a 57 per cent stake, the Oil Industry Development Board 42 per cent, and the public the rest.

Though switchgear panels and other electrical spares continues its core area, the main revenue-earners are petroleum products like superior kerosene oil and paraffin wax.

Trading of paraffin wax and superior kerosene oil fetched the company Rs 40.26 crore or 56 per cent of the total sales turnover.

Mathur today sought shareholders opinion on whether they would subscribe to a rights- cum- public issue, if the government allows it to restructure its capital. His query met with an overwhelming response, with the minority shareholders present promising to support any rights issue at par value.

Mathur said turnover had declined because Biecco is no longer the sole canalising agency for all import of paraffin wax by public sector units. Now, it handles only around 500 tonnes a year, against 20-25,000 tonnes earlier.

Some shareholders were critical about the increase in sundry debtors as a percentage of its sales turnover. In 1998-99, sundry debtors have increased to Rs 16.80 crore, or 23 per of total sales turnover.