gokhatak enterprises ltd Management discussions


GOKHATAK ENTERPRISES LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Financial Results: (Rs.) (Rs.) 2007-2008 2006-2007 Sales & Service 3,99,404 3,51,10,461 Gross operating Profit (Loss) (3,08,515) (32,308,791) Less: Interest 30,801 Depreciation 3,54.757 95,66,449 Profit (Loss) Before Tax (6,83.303) 10,89.33,857) Provision for hinge benefit tax - Profit (Loss) After Tax (0,93,303) (10,89.33,657) Prior period expenses - Balance brought forward (24,21,79.764) 1348107 Profit (Loss) available for appropriation (24,2873067) (24.219,7) Balance carried to Balance Sheet (24,28,73,08 (24,21,79,764) Dividend in view of the loss during the year no dividend has been recommended. Operations and future prospects: The operations during the year were considerably affected due to Konica Minoltas withdrawal from photo business. Due to their withdrawal the holding Company had to declare lock out and suspend the manufacturing operations since May, 2008. The supply of photographic paper and chemicals was therefore affected. In view of closure of Konica Minoltas business and there being no further prospects for conventional photographic protected business the Board of Directors have decided to merge the Company with the holding Company with affect from 30th June, 2007.