Prime Securities incurs losses in capital markets

Prime Securities Ltd has informed about the following:

"Prime Securities Ltd and its subsidiary, Prime Broking Company (India) Ltd, have been the subject matter of several unsubstantiated rumours over the last few days, of huge losses, hence, for the benefit of the investing community and shareholders at large, wish to clarify the following:

a. The Loss in the Futures & Options segment for the current financial year, till date, is marginally under Rs 3 crores.

b. The Profit in the Capital Market segment for the current financial year, till date, is approximately Rs 38 crores.

c. In keeping with established accounting norms, the entire investments will be marked to market at year end, at the lower of market value or cost. Consequently, the estimated. provision for depletion in value of the Securities as on date would be approximately Rs 23 crores.

d. Post the Investments write down of Rs 23 crores, the PBT for the year is expected to be around Rs 27 crores.

e. Further, there is no outstanding Futures & Options position as on date."