kedia chemical industries ltd Management discussions


KEDIA CHEMICALS INDUSTRIES LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS 1. FINANCIAL RESULTS: (Rs. in Lakhs) Particulars 2005-2006 2004-2005 (12 months) (15 months) Profit (Loss) before Depreciation 6.41 465.64 and Tax Less: Depreciation 0.53 32.16 Profit (Loss) before Tax but after 5.88 433.47 Depreciation: Add extra Ordinary Items - - Loss on Sale of Assets 178.83 - - Less: Profit period adjustments - (178.83) (351.89) Add: Prior period adjustments (9.58) (30.89) Add: Loss brought from the (1171.34) (1222.03) previous year Balance carried to Balance Sheet (1353.87) (1171.34) 2. OPERATION & FUTURE STRATEGY: During the year Company has disposed off its plants and machinery along with the land and building and therefore suspended its manufacturing activities. The Company is in the process of venturing in to New Business Avenue. During the year the Company has entered into OTS with Bank. The Management during the year has decided to suspend its business activities and shift its manufacturing activities towards backward area to save the cost and avail benefit under various scheme of the Government. It has affected concept of Going Concern. 3. INSURANCE: As required under Public Liability Insurance Act, 1991 the Company has taken necessary insurance cover.