bluechip tex industries ltd Management discussions

BLUE CHIP TEX INDUTRIES LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: In terms of Rs. 2010-2011 2009-2010 Profit before depreciation 74,68,492 72,21,521 Less: depreciation 18,63,211 17,80,770 Profit before Tax 56,05,281 54,40,751 Less: Provision for taxation Current tax 20,50,000 19,67,000 Deferred tax (3,70,990) (2,67,440) Fringe Benefit tax - - Profit After Tax 39,26,271 37,41,191 Add: Taxation for earlier year (482) 49 39,25,789 37,41,240 Balance in Profit and Loss Account 98,59,533 78,41,625 Surplus available for appropriation 1,37,85,322 1,15,82,865 Proposed Dividend 14,77,875 14,77,875 Tax on Proposed Dividend 2,39,748 2,45,457 Balance carried to Balance Sheet 1,20,67,699 98,59,533 FUTURE PROSPECTS: During the year the Company continued with its own manufacturing activity and its own sale of twisted yarn. Also, through sale of Power from the Wind Power generation units, the Company will be able to maintain its profitability from Sales and other Income by way of Rent. Considering the positive market demand for Texturised and Texturised Twisted Yarn, the Company is setting up a new project of additional texturising and twisting machines, for which a new building is under construction. The estimated cost of this Project is Rs. 13.5 Crores, towards which a Term Loan of Rs.9 Crores has been sanctioned by Axis Bank. The balance requirement will be financed by the Promoters. This will further enhance the Companys turnover and resultant profitability.