dr sabharwals manufacturing labs ltd share price Management discussions

DR. SABHARWALS MANUFACTURING LABS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS WORKING RESULTS: Due to recession in the pharmaceutical industry and high input cost, the company has suffered a net loss of Rs. 27,22,382.48 Lacs during the year under report. The comparative results for the year and those of previous year are summarised below: 2007-2008 2006-2007 1. Operating Profit/Loss before Interest & (526889.19) 33,61,673.88 Depreciation. 2. Less: Interest 11,34,122.81 7,88,849.47 3. Profit/Loss before Depreciation (16,60,412.00) 25,72,824.41 4. Less Depreciation 10,61,970.48 10,89,132.92 5. Profit/Loss after Depreciation and Interest (27,22,382.48) 14,83,691.49 6. Less: Provision for Deferred Tax Liability (8,80,910.00) (4,05,261.00) 7. Less: Provision for Taxation 1,00,000.00 5,74,000.00 8. Net profit/Loss after Taxation (19,41,472.48) 13,14,952.49 9. Balance brought forward from previous year 2,806.03 19,583.14 10. Adjustment relating to previous year & Taxation - 1,95,769.60 11. Loss/ Profit available for appropriation (19,38,666.45) 11,38,766.03 12 Transfer from General Reserve - - 13. Dividend NIL 8,00,000.00 PERFORMANCE: During the year under report,due to stiff competition in the domestic as well as overseas market your company has suffered oevere set back and sales of your company during the year under report have been Rs.389.38 lacs as compared to Rs. 439.76 lacs during the previous year. Because of fall in sales and high input cost the company has suffered a net loss of Rs.27,22,382.48 Lacs during year after charging interest and depreciation under input as compared to net profit of Rs. 14,83,691.49 Lacs during the immediate precedding year. The company is taking all necessary steps to improve performance and profitibility in the comming year. FUTURE PROSPECTS: Your Directors are happy to announce that the Company after getting ISO 9001:2000 Certificate is maintaining the spirit of total quality management and is earning more by reducing rejections and failures. We hope to have more business and growth for the time to come. INDUSTRIAL RELATIONS: Directors are pleased to record their deep appreciation for the efforts put in and co-operation extended by the employees at each level. A spirit of team work and cordial relations existed throughout the year.