milan laboratories india pvt ltd share price Management discussions

MILAN LABORATORIES(INDIA) PRIVATE LIMITED ANNUAL REPORT 2006-2007 MANAGEMENT DISCUSSION AND ANALYSIS Performance of the Company The Company has made a Net Profit after Provision for Taxation of Rs.44,51,827/-. Due to controversies a/s. 80HHC of the Income Tax Act assessments of several years are under dispute. The company has received the assessment of earlier years and the claim of the company is pending before the Honble Income Tax Appellate Tribunal & Commissioner of Income Tax (Appeals). The Company hopes the tax liabilities of the earlier years will be reduced due to amendments to Finance Act 2005. The deprecation has decreased to Rs. 88.23 Lacs from Rs. 98.52 Lacs in the previous year. The Company has made good efforts in other markets such as Uganda, Angola etc. to compensate loss of Nigeria market, & it has shown improvement on the top line as well as bottom line. This year the company has decided not to provide any interest on unsecured loans of Rs. 8,89,23,816 so as to improve the net profit which is a primary condition in order to avail of ECB from financial institutions for the next phase of capital investment in the new project of Tablets / Capsules Sections to be set up for regulated market. Company intends to ensure more strict financial discipline in coming year so as to improve the bottom line. Future Growth and Expansion In the year 2007-2008 the company proposes to offer Betalactam facility to South Africa (MCC) & United Kingdom (MHRA) for regulatory approval. If the company gets this regulatory approval it will contribute substantially to the top line & bottom line. The company will be signing sales agreement with one UK party for 1.5 million UK pounds for the 15t year for firm turnover after MHRA approval. The company will continue to explore ways & means to increase its turnover in un-regulated & semi regulated markets. The company proposes to start construction for new tablets & general capsule facility in existing plot using balance FSI, which will be offered for regulated markets in year 2008-2009. The company is expecting the rupee to appreciate further, which will affect the bottom line. The company proposes to hedge its foreign exchange risks. Industrial Relations Relations with staff and workmen at the factory continued to be peaceful and cordial during the year under review.