Chase Bright Steel Ltd Management Discussions

CHASE BRIGHT STEEL LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS 1. FINANCIAL RESULTS Your Companys performance for the financial year ending 31st March 2010 is stated below: Particular For the year ended on March 31, 2010 March 31, 2009 Profit before tax 46,13,307 46,02,124 Less: Provision for tax and FBT 16,25,000 23,10,000 Less: Deferred Tax 4,52,626 (19,50,622) Add: Excess Provision for I.T. written back 4,09,040 15,00,000 Less: Prior Period Adjustment-Debit (net) (2,94,498) (1,50,843) Net profit for the year after tax 26,50,223 55,91,903 Less: Losses brought down from earlier year (1,93,78,896) (2,49,70,799) Balance Losses carried to Balance Sheet (1,67,28,673) (1,93,78,896) 2. WORKING The companys working result is not as per expectations. This is mainly due to severe pressure on the margins of companys products. Raw material prices continued to rise without any corresponding increase in the selling price of the finished products. The company has been able to enter into new markets for exports but the prices are not remunerative. Even then efforts to establish companys brand image continues and shall be beneficial in the long run. The current years working is expected to be encouraging.