I P Pins & Liners Ltd Management Discussions.

IP PINS AND LINERS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS: The company has successfully completed the expansion project both in pins and tooling areas and benefits of capacity increase are accruing from the later part of the financial year. During the year under review, the companys income increased substantially from Rs. 677.25 lakhs to Rs. 947.72 lakhs. The increase in sales is mainly on account of sales of pins to the existing customer base. With expanded tooling capacity, the company has also started catering to a few new customers. While Input costs moved up marginally during the year, the impact of the increases was more than offset by the volume increase. Consequently the profit before tax moved up from Rs. 100.54 lakhs to Rs. 179.54 lakhs. After providing for Rs. 52.00 lakhs towards current tax, Rs. 3,90 lakhs towards deferred tax and Rs. 1.30 lakhs towards Fringe Benefit Tax, the profit after tax resulted in Rs. 122.33 lakhs as against Rs. 62.28 lakhs in the previous year. OUTLOOK: The company is considering investments for balancing of capacities in both pins and tooling areas during 2006-2007 to fully utilize the expanded capacity in order to maintain its growth rate in phase with that of customer requirements. The company is also contemplating further expansion / introduction of new technologies during the current financial year.