inarco ltd Management discussions

INARCO LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: The turnover fur the year stood ul Rs. 368.76 Million -an increase of 14% over the previous year. The Company made a profit of Rs.35.59 million beforeinterest, and amortisation of VRS expenses and tax. After absorbing theamortisation costof the Thane Plant, the profit before tax and Fringe Benefit Tax stoodat Rs.24.55 million. Particulars Rs.in Million 2007-2008 2006-2007 Profit before Interest and amortisation of VRS expenses and compensation to the employees on closure of Thane Plant 35.59 24.41 Less: Interest (10.94) (8.49) Profit/(Loss) before amortisation of VRS expenses and compensation to the employees on closure of Thane Plant 24.65 15.92 Less: Amortisation of VRS expenses (0.10) (0.10) Less: Amortisation of compensation to the employees (0.0) (4.26) on closure of Thane Plant Profit/(Loss) before Tax 24.55 11.56 Less: Tax for the year (7.05) (1.25) Add: Deferred Tax 7.05 0.00 Less: Fringe Benefit Tax including short provision for previous year (1.27) (0.85) Profit/(Loss) after Tax 23.28 9.46 Profit brought forward from previous year 10.81 4.58 Available for Appropriation 34.09 14.04 Proposed Dividend 2.85 1.90 Tax on Distributed Profits 0.48 0.33 Transfer to General Reserve 2.50 1.00 Balance Profit carried to Balance Sheet 28.26 10.81