asco india ltd Management discussions

ASCO (INDIA) LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS Corporate Results 2007 2006 (in Rs. million) Sales and other income 434.99 344.85 Profit before interest, depreciation and taxes 177.22 134.74 Profit for the year 166.07 124.00 Provision for tax (withdrawal/(provision)) Current (54.66) (44.89) Deferred (0.74) 3.48 Fringe Benefit Tax (0.51) (0.52) Interim dividend paid (43.20) (48.00) Proposed dividend (28.80) (15.60) The directors recommend a final dividend of Rs.60 per share, which along with the interim dividend of Rs.90 per share declared earlier, brings the total dividend for the year to Rs.150 per share. The directors also recommend a transfer of Rs.11 million to General Reserve. Operations The Company achieved impressive results during the year. Order booking grew 29% and sales grew 25% over the previous year. Domestic sales increased by 13% and exports increased by 89% over the previous year. Recovery in the petro-vending business and revenues from new products contributed to the sales growth. The Company is continuing to make good progress in the development of new products. The Company is in the process of augmenting its production capacity and is also taking steps to improve operational efficiency. The Company is anticipating good growth in the domestic and export business in the coming years. Finance The Company contributed Rs. 143.97 million to the Central and State Exchequers during the year under review. Personnel The Directors would like to record their appreciation for the contribution made by the employees at all levels.