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HARDCASTLE AND WAUD MANUFACTURING COMPANY LIMITED
ANNUAL REPORT 2007-2008
MANAGEMENT DISCUSSION AND ANALYSIS
1. FINANCIAL RESULTS AND APPROPRIATIONS:
Year ended Year ended
31 March, 2008 31 March, 2007
(Rs. Lacs) (Rs. Lacs)
Profit/(Loss) before Interest,
Depreciation and
Exceptional Items 677.53 (10.38)
Interest 18.82 1248
Depreciation 27.93 34.95
Exceptional Items (55.00) 17.76
Prior year Adjustments (10.58) 7.45
Profit/(Loss) Before Taxation 1146.43 (32.60)
Provision for Taxation 13620 0.56
Deferred Tax 40.58 (3.16)
Fringe Benefit Tax 5.56 5.60
Net Profit/(Loss) after Taxation 964.09 (35.60)
Balance b/f from Previous Year 1120.95 1156.55
Carried forward 2085.04 1120.95
With a view to strengthen the financial position of the Company, no
dividend payout is being recommended.
2. OPERATIONS:
The Gross Sales of the Company's products (excluding inter-divisional
transfers) registered a growth of about 14% over the earlier year. The net
profit after tax was Rs 964.09 lacs against earlier year's loss of Rs 35.60
sacs. This year's profit includes proceeds of sale/transfer of some trade
marks, copyrights, technical knowhow and goodwill relating to part of the
Company's Sealants & Maintenance Products business with effect from 21st
February, 2008. As a part of the sale, a major portion of the Company's
inventories and receivables relating to the said business were also
transferred to the acquirer.
The country's economy is currently passsing through a difficult phase with
double disignation inflation. The major factors giving rise to this downtum
are high crude oil prices and worldwide rise in food prices. This has
prompted the Government and the Reserve Bank of India to initiate several
steps including regulating flow of credit and making credit costlier. These
steps have led to fall in the growth rate of industrial production.
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