hyundai motor india ltd Management discussions

HYUNDAI MOTOR INDIA LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS COMPANY PERFORMANCE: FINANCIAL RESULTS: (Rs. in Millions) PARTICULARS 2005-2006 2004-2005 Sales and Services 85,401.11 73,519.02 Less: Excise Duty 11,234.06 10,459.98 Add: Other Income 4,205.88 3,491.29 Less: Expenditure 67,340.57 57,806.93 Profit before Interest and Depreciation 11,032.36 8743.40 Less: Interest and Financial Charges 33.48 132.11 Depreciation 2,950.11 2,500.12 Profit Before Tax 8,048.77 6111.17 Less: Provision for Tax - Current 3,168.18 1,447.50 - Deferred (414.60) 594.44 Fringe Benefit Tax 44.19 - Profit after Tax 5,251.00 4,069.23 Add: Surplus brought Forward 6,549.77 4,074.29 Amount Available for Appropriation 11,800.77 8,143.52 APPROPRIATIONS Proposed Dividend - 1,218.81 Tax on Proposed Dividend - 170.94 Transfer to General Reserve - 204.00 Surplus transferred to Balance Sheet 11,800.77 6,549.77 Earnings per Share - Basic and Diluted 646 501 (in Rs.) Weighted Average Number of Shares 8,125,411 8,125,411 OPERATIONS: Turnover for the financial year under review was Rs.85,401.11 million as against Rs.73,519.02 million for the previous financial year, an increase of 16.16%. Profit after tax increased by 29.04% from Rs.4,069.23 million in the year 2004-05 to 5,251.00 million for the financial year under review. For the year 2005-06, volume of sales rose by 16% from 2,24,074 vehicles during 2004-05 to 2,60,919 vehicles of which the export sales rose by 24% from 84,098 vehicles during 2004-05 to 102,092 vehicles. ACHIEVEMENT: The Directors are delighted to inform that the Company has rolled out 10,00,000th car within a short duration of ten years from its incorporation. The models of the Company has won many accolades besides Sonata Embera winning the Executive Car of The Year 2006 award by Business Standard Motoring Magazine and Tucson being declared as SUV of The Year by NDTV Profit-Car & Bike awards 2006.The mid-size sedan Accent won two awards, Accent Petrol-No. 1 Entry mid-size car and Accent Diesel-No 1 mid-size diesel car by TNS. FINANCE: The Company has availed loans from ING Vysya Bank during the year 2005-06 and has repaid it in the same year. The Company has no outstanding amounts against credit facilities obtained from various banks and Financial Institutions. HUMAN RESOURCES: Industrial Relations remained cordial during the financial year under review. To meet the challenges of an evolving environment, the Company continues to place tremendous importance on training, development and nurturing its personnel. Employees were given training at Hyundai & Kias Corporate Quality Division for Global Quality Leader Program. The Company also conducts Quality Schools to train employees in Quality importance, ISO, TPM, Suggestion Schemes, 7 QC tools and other schemes. CORPORATE SOCIAL RESPONSIBILITY: At Hyundai Motor India, corporate social responsibility is viewed as a commitment towards excellence and sustenance. As a socially responsible corporate citizen, the Company is taking various initiatives primarily in the areas of education and health. On 6th March 2006, the Company has taken a giant step towards Corporate Social Responsibility by establishing HYUNDAI MOTOR INDIA FOUNDATION. The Foundation seeks to address the expectation of the society and extend support in the field of health, education, vocational training, road safety, environment protection, etc. The Company in association with the Institute of Road Traffic Association and Delhi Traffic Police launched the Hyundai Traffic Squad programme to create and promote road safety awareness and assist the Delhi Traffic Police in managing traffic systems in Delhi. The Company has contributed a sum of Rs.1 Crore to the Tamil Nadu Chief Ministers Public Relief Fund to help the State which was badly affected due to floods causing innumerable loss and destruction of property. On Behalf of the Board of Directors Irrungattukottai HEUNB SOO LHEEM HAN WOO PARK July 6, 2006 Managing Director Executive Director - Admn