jyoti holdings pvt ltd Management discussions

JYOTI HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE As reported in the previous year, your Company had entered into another arrangement with effect from 1st October, 2004 with the Holding Company, Rossell Tea Limited, whereby Borahi T.E. was given to them for their running and maintenance for carrying out agricultural activities thereat. This arrangement was terminated by efflux of time on 31st December, 2005 and re-entered on and from 1st February, 2006. Thus, your Company carried out agricultural operations during January, 2006 only, when no Green Leaf could be plucked. In view of this, your Company earned monthly agricultural rent only, apart from the Processing Charges for allowing the use of facilities at Borahi Factory. The year under review ended with an operational profit before depreciation of Rs. 48.80 lacs as against Rs.58.95 lacs during the previous year. After providing for Depreciation, Current Taxation, net of write back in respect of earlier years, Fringe Benefit Tax and Deferred Taxation, the profit after tax was lower at Rs. 42.26 lacs as against Rs. 53.17 lacs in the previous year. PROSPECTS The arrangement for running and operation of Borahi Factory with Rossell Tea Ltd., the Holding Company has further been extended by 11 months. Thus, the Factory is being run and operated by Rossell Tea Ltd. By another arrangement as aforesaid, the agricultural operations are also being carried out by them. Thus, your Company foresees a constant stream of income not subject to vagaries of nature or fluctuation in tea prices. STAFF WELFARE AND SOCIAL ACTIVITIES The Company continuously undertakes various workers welfare programmes and is actively involved in various schemes to implement certain need-based programmes. The Company always participates in socio-welfare schemes being undertaken by ITA for the benefit of the people of Assam in general.