Khandelwal Extra Management Discussions

KHANDELWAL EXTRACTIONS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS Rs./Lacs Sales and other Income 1658.27 Profit before Interest and Depreciation 59.71 Less: Interest 22.26 Depreciation 3.46 Profit before Tax 33.99 Provision for Tax 9.96 (Including Deferred Tax & Fringe BenefitTax) Profit after tax 24.03 Balance as per last account 38.66 Amount available for appropriations 62.69 APPROPRIATIONS: Dividend on Preference Shares 1.17 (including tax) Transfer to General Reserve 25.00 Balance carried to Balance Sheet 36.52 OPERATIONS: During the year under review profit before tax was higher at Rs.33.99 Lacs compared to Rs.31.96 Lacs in previous year. The production during the year was at 15549 MT compared to 17077 MT during the previous year. Similarly, sales and other income was also lower at Rs.1658.27 Lacs compared to Rs.1767.69 Lacs in previous year. This is basically due to late arrival of rice bran which has affect the production schedule. MANAGEMENTS PERCEPTION: As reported last year, your companys business being Agro based is basically full of uncertainties. Recent hike in all petro products including hexene coupled with transportation charges shall further increase the cost of production. Oil (finished product) market being volatile depending upon international markets created a situation of uncertainties. Your management is making efforts to maintain the margin parity so as to have a reasonable return.