mondelez india foods pvt ltd Management discussions

CADBURY INDIA LIMITED ANNUAL REPORT 2008 MANAGEMENT DISCUSSION AND ANALYSIS 1. Financial Highlights The table below gives the financial highlights of the Company in the financial year 2008 as compared to previous financial year. 2008 2007 Rs. Lacs Rs. Lacs Sales 158860 129347 Other Income 2506 2252 161366 131599 Profit before Interest, Depreciation & Tax 24361 17944 Interest (520) (203) Depreciation (3652) (3432) Profit Before Tax and Exceptional Items 20189 14309 Provision for Taxation - Current Tax (3855) (3910) - Deferred Tax 244 (557) Profit after Tax 16578 9842 Tax adjustments of earlier years - 1923 Net Profit (after tax adjustments of earlier years) 16578 11765 Balance in P & L A/c brought forward 34313 24391 Adjustments made in accordance with the transitional provisions of accounting Standard 15 on Employee Benefits - (184) Balance available for distribution 50892 35973 Utilized for buy back of Shares 9897 - Proposed Dividend (including Dividend Tax) 753 777 Transfer to General Reserve 1250 882 Balance in P & L A/c carried forward 38992 34313 Earnings per share - Basic & diluted in Rupees 50.62 34.86 2. Enhancement of Production Capacities In line with its growth plans the Company is setting up a new manufacturing facility (Unit 2) at Baddi, Himachal Pradesh. The construction of the unit is progressing well and is expected to be fully operational in 2009. 3. Quality Initiatives Continuous improvement plans have been put in place to maintain high level of Food safety compliance. New product ! new facility design reviews, supplier audits, HACCP (Hazard Analysis and Critical Control Points) surveillance audits i GMP (Good Manufacturing Practices) audits at manufacturing plants, ware house audits and route to market audits have been executed through out the year. Centre of Excellence microbiological laboratories were established to ensure quick and accurate microbiological monitoring of food products. Latest techniques like X-ray inspection system and on-line cameras have been introduced to ensure food safety of the product. 9. Environment & Safety Safety performance improved significantly with reduction in injury frequency rates through successful implementation of Cadbury Priority Safety Standards. Overall absolute water consumption was reduced by 20,0 over 2007 by following Reduce, Recycle, Reuse and Replenish principles across plants. Plants installed reverse osmosis systems to treat and reuse water in cooling towers and boilers. Measures like rain water harvesting and recharging of bore well reservoirs are in place at plants. Specific energy consumption and carbon emission reduced over last year.