commitment finance ltd Management discussions

ELGI ULTRA INDUSTRIES LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Financial Results: The performance of the company is summarized as detailed below. (Rs. in lakhs) Year ended year ended Particulars 31.03.2009 31.03.2008 Profit before depreciation, interest and tax 488.82 452.86 Less: Depreciation 68.76 50.47 Profit before interest and tax 420.06 402.39 Less: Interest 182.35 188.59 Profit before tax 237.71 213.80 Less: Provision for taxes 86.50 65.00 Deferred tax liability 2.25 17.00 Profit after tax 148.96 131.80 (Less)/add: Prior year adjustments - 2.25 Add: Opening balance in Profit and Loss A/c 404.00 394.92 Total amount available for appropriation 552.96 528.97 The Directors recommended the following Appropriations: Provision for Doubtful Actionable claims 113.41 99.76 Dividend (including tax) 21.91 21.91 Transfer to General Reserve 3.30 3.30 Retained in Profit & Loss account 414.34 404.00 REVIEW OPERATIONS: For the year ended 31st March 2009, the company has achieved a turnover of Rs. 7253 lakhs as against the previous years turnover of Rs. 6494 lakhs, registering an increase of 11.69% over the previous year. The Consumer Products Division and Industrial Products Division improved their sales over the previous year. Pressure Vessel Division, being first full year of operation has improved its capacity during the last quarter of this financial year but has not contributed any profit. However the realizations were lower due to the general sluggishness in the economy and the high cost of operations which affected the profitability of the company. FUTURE PLANS: The company is continuing its R Et D efforts to meet specific needs of the customers. The Consumer Product Division is in the process of launching a range of kitchen appliances during the year. The Industrial Product Division have also enlarged its product range to meet the industries specific needs.