MUMBAI, July 30: The stock market depression seems to have taken a heavy toll on the corporate sector. Great Eastern Shipping Company Ltd (GESCO) - the largest shipping company in the private sector - which suffered a Rs 10.89 crore fall in the market value of quoted investments has now decided to completely exit from equities. In future, the surplus cash of the company will be deployed in short-term money market instruments and in lending to companies offering safety. The company's investment in equities has now been substantially brought down. As on March 1997, the total investment in non-core equity portfolio was Rs 10.8 crore, which is less than one per cent of the total capital employed.``In the opinion of the management, the diminution in the value of shares and debentures is of a temporary nature, hence provision has been made in the accounts for such diminution,'' the company said in the notes on accounts of the latest balance sheet. Investments include 38.36 lakh shares in Prime Securities of Rs 6.30 crore which are subject to a lock-in period.In the meantime, the company which reported a turnover of Rs 878 crore and a net profit of Rs 136.4 crore for the year 1996-97, has proposed to take up the business of owning and operating international style executive convetion service centres, executive serviced residential centres, service apartments, shopping malls and the property development business. The company plans to form a joint venture with suitable international partners in which the company's equity participation could exceed 30% of the subscribed capital of such joint venture company.
