tolani bulk carriers ltd Management discussions


TOLANI BULK CARRIERS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW AND OPERATIONS During the year under review, the total income of the Company was Rs.9.69 million, which after providing for/adjusting expenses, interest, depreciation and taxes resulted in Net Profit after tax of Rs.0.78 million. Your Company presently owns two barges, M.V.Tolani XVI and M.V.Tolani XVII, which are given on bareboat charter. The Company had purchased these barges from the Holding Company, Tolani Shipping Co. Ltd. (TSCL) on a deferred payment basis. The balance purchase consideration of Rs. 5.84 million, which was outstanding at the beginning of the year, has been fully paid off by the Company to TSCL. In terms of the Scheme of Demerger and transfer of Shipping Business/ undertaking of the Company, TSCL had issued 8% Cumulative Redeemable Preference Shares to the eligible Equity Shareholders of the Company. The Preference Shares have been redeemed by TSCL on 15th April, 2006, on expiry of its three year term.