p k s ltd Management discussions

PKS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS Overview: Your company has continued to strengthen its position in all its businesses during the financial 2007-08. Net sales of the company go up by 51.40% which is because of substantial increase in exports of following Commodities: Items Rs. in Crores Rs. in Crores Year 2005-06 Year 2006-07 % of Growth RICE 6.85 92.69 1484.44% SUGAR 51.02 219.39 331.96% GOLD GEWELLERY 76.96 87.24 14.20% Performance of the Company: Established in 1982 and through its continuous efforts in the field of export business internationally has elevated itself to the Status of Trading House as recognized by the Office of Joint Director General of Foreign Trade, Ministry of Commerce, and Government of India. In the ensuing year, your Company has exported Rice, Soyabean doc, Maize, Rapeseed Meal, Dry Chilli, Sugar, Ammonium Sulphate, Raw Cotton, Gypsum,Slag,Iron Ore Fmes,machinery with accessories and Gold Jewellary in large scale to various overseas countries like Bangladesh,Pakisthan, USA, U.K, UAE, Sri Lanka, Malaysia, Singapore. During ensuing year Significant growth has been achieved in export of Soyabean doc, Sugar & Iron Ore Fines. We have lifted Iron Ore Fines from various mines of Indian Iron & Steel Company (now SAIL), The Orissa Mineral Development Corporation (OMDC) & The Orissa Mining corporation (OMC) and transporting the same to Haldia, Vizag and Paradip Port for making ultimate shipment to China. Gold Jewellary Export has increased to Rs. 87.24 crs compared to last year amount of Rs.76.39 Crores. Your Companys total exports during the year 2007-2008 are Rs. 776.49 Crores The company has delevered a net profit before tax of Rs. 9.09 Crores. The performance of the Company for the Financial Year Ended March 31, 2008 is summarized below: (Rs. In Lacs) Particulars Year ended 31st March 2008 2007 Income 822194.49 54356.49 PBT 908.87 760.04 Interest 2111.33 1477.52 Depreciation 13.74 9.93 Provisions for taxation 292.78 144.09 Profit after tax 616.95 915.95 Export Excellence: It is pleasure to inform you that during the year your Company is being selected for prestigious AWARD FOR EXPORT EXCELLENCE for outstanding contribution to the promotion of Export of engineering Export Promotion Council and (E.E.P.C) for special contrubution as medium enterprices. The company has also sent nomination from Agricultural and Processed Food Products Export Development A.B.E.D.A) for export achieved during the financial year 2007-08. Future Prospect: The Company has taken all possible ways to expand its export business in all areas it operates in. In accordance with the vision of the company to globaline its operations & reach to various parts of the world. A special drive has been initiated to expand Business of Gold Jewellary, Sugar, Rice, Soyabean doc, Maize, Rapseseed Meal, Raw Cotton in a massive scale to different Countries including Bangladesh. Pakisthan, U.K, USA, UAE, Malyasia, Vietnam, Sri Lanka and Singapore. In addition, your company has Strengthened the position of export of Iron Ore Fines to China by Exporting Rs. 92.84 Crores in the year 2006-07. Your Directors expect satisfactory growth & profitability in years ahead. Risk Management: As an export oriented enterprise, your Company has always had a system based approach to business risk management backed by strong internal control systems. Appropriate structures have been put in place to effectively address the inherent risks in business with unique/relatively high risk profiles. Statutory Statements: As per the requirements of Section 217 (1) (e) of the Companies Act, 1956 read with the Companies ( Disclosure of particulars in the report of board of directors) Rules, 1988 , the information regarding conservation of energy , technology absorption and foreign exchange earnings and outgo are given in this report.