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YULE FINANCING AND LEASING COMPANY LIMITED
ANNUAL REPORT 2009-2010
MANAGEMENT DISCUSSION AND ANALYSIS
(Rs. in lakhs)
Financial Results:
Profit before depreciation & Interest 54.23
Less: Depreciation 6.37
Interest 30.00
36.37
Profit for the year 17.86
Add : Deferred Tax written back 2.78
Net Profit for the year 20.64
Less : Loss brought forward from
last A/c. 980.54
Loss carried forward to Balance
Sheet 959.90
OPERATIONS AND FUTURE PROSPECTS:
Due to liquidity constraints during the year under review, your Company's
performance for the year has deteriorated as compared to the previous year.
The Company recorded a profit of Rs.20.64 lakhs in 2009-10 as compared to
profit of Rs.173.26 lakhs in 2008-09.
The Company however has been successful in reducing Public Deposit
liability from Rs.1.69 crores to Rs.1.56 crores as on 31st March, 2010
through utilization of funds provided by Andrew Yule & Co. Ltd. as
unsecured loan.
In order to ensure revival of the Company through generation of its own
funds, the Company has entered into the Insurance Business which has a good
market and is expanding very fast. During the year, your Company has earned
Rs.4.10 lakhs from Insurance business as compared to Rs.4.07 lakhs in 2008-
09.
Your Directors feel that by venturing into this new line of business and by
putting more thrust on recovery of its old outstanding dues from the
debtors, a turnaround of the Company is a distinct possibility.
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