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KHANDELWAL EXTRACTIONS LIMITED
ANNUAL REPORT 2007-2008
MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL RESULTS Rs./Lacs
Sales and other Income 1658.27
Profit before Interest and Depreciation 59.71
Less: Interest 22.26
Depreciation 3.46
Profit before Tax 33.99
Provision for Tax 9.96
(Including Deferred Tax & Fringe BenefitTax)
Profit after tax 24.03
Balance as per last account 38.66
Amount available for appropriations 62.69
APPROPRIATIONS:
Dividend on Preference Shares 1.17
(including tax)
Transfer to General Reserve 25.00
Balance carried to Balance Sheet 36.52
OPERATIONS:
During the year under review profit before tax was higher at Rs.33.99 Lacs
compared to Rs.31.96 Lacs in previous year. The production during the year
was at 15549 MT compared to 17077 MT during the previous year. Similarly,
sales and other income was also lower at Rs.1658.27 Lacs compared to
Rs.1767.69 Lacs in previous year. This is basically due to late arrival of
rice bran which has affect the production schedule.
MANAGEMENT'S PERCEPTION:
As reported last year, your company's business being Agro based is
basically full of uncertainties. Recent hike in all petro products
including hexene coupled with transportation charges shall further increase
the cost of production. Oil (finished product) market being volatile
depending upon international markets created a situation of uncertainties.
Your management is making efforts to maintain the margin parity so as to
have a reasonable return.
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