karnataka theatres ltd Management discussions


KARNATAKA THEATRES LIMITED ANNUAL REPORT 2008-2009 MANAGEMENT DISCUSSION AND ANALYSIS Review of Operations: The financial results for the year have not been as good as in the previous year, which was an exceptional one. The gross income at Rs. 82,29,329/- is generally in line with the earlier years excluding a couple of years. So is the profit before tax of Rs. 17,80,930/- We have been able to achieve the financial results although availability of good films was poor. Development Project: The joint development agreement should have been signed by now; but, we regret it has not been possible. The Mangalore City Corporation (MCC) visited our property at Jyothi Talkies, surveyed it and indicated that a strip of land along our boundary will be taken over for road widening. Later, MCC indicated that the area to be taken over will be 4.15 cents. Till to date we are awaiting confirmation of this. However, meanwhile, the plans and drawings that were ready, have been revised to allow for the proposed area for road widening. Share Capital: There is no change in the share capital. The issue of Right shares in the ratio of one for every two shares held has been deferred, as already informed. Fixed Assets and Depreciation: Fixed Assets are stated at cost less accumulated depreciation. Cost includes, freight, duties taxes and incidental expenses related to the acquisition and installation of the assets. Human Resources: The Company continued to have cordial and harmonious relations with its employees. Fixed Deposits: The Company has not invited or availed Fixed Deposits from public during the year under review.