Kilburn Chemicals Ltd Management Discussions.

FINANCIAL HIGHLIGHTS

(Rs. In lacs)
2016-17 2015-16
Total Revenue 1.25 107
Gross Operating Profit 28.24 462
Depreciation for the year 5.12 45
Profit/ (Loss) Before Extraordinary items and Tax 23.11 417
Profit Before Tax (PBT) 23.11 417
Provision for Tax including Deferred Tax 9.71 (64)
NetProfit After Tax(PAT) 13.41 480
Add : Surplus/Loss brought forward from previous year 4568 4088
Profit available for Appropriation 4581 4568
Balance carried forward 4581 4568

GENERAL REVIEW OF OPERATIONS AND THE STATE OF COMPANYS AFFAIRS

During the year under review the Company has achieved turnover of Rs.1.25 lacs on sales of product on trial run basis as compared to last year turnover Rs 107 lacs revenue came from its Wind Mill Division hence the result is not comparable. Company has reported profit after tax including deferred tax Rs.13.41 lacs as compared to Rs 417 lacs last year (which include the profit on sales of Wind Mill Division) hence not comparable. The Company has started setting up a new project for manufacturing Titanium Dioxide at Gujarat (for more Details please refer to future outlook).

FUTURE OUTLOOK

Your Directors are pleased to report on-schedule progress in the new Project for production of both Anatase and Rutile grade of Titanium Dioxide (annual capacityof 15000 tons) at Dahej, Gujarat. During the year under review, extensive progress has been made in civil and structural work and ordering and delivery of key equipments from most-reputed suppliers in each equipment category. Several of the imported equipments have also arrived at the Project site and are in various stages of erection along with electrical cabling and process piping.

The Company has obtained all relevant utility clearances with respect to availability of Water, Electricity and Natural Gas and other necessary regulatory clearances are in order.

The Project is on schedule for trial production and commissioning to commence within the second quarter of the 2017-18 financial year.

RISK MANAGEMENT

The Company has formulated risk management Policy which is well defining mechanism to identify, assess, monitorand mitigate various risks to key business objectives.

On continuous basis risks are indentify by the functional heads and which discussed at various Committee or group level including Audit Committee and Board of Directors and systematically address to mitigate risk.

INTERNAL FINANCIAL CONTROLS

The company has in place the adequate internal financial controls systems with reference to Financial Statements. During the year, such controls were tested and no reportable material weakness was observed.