taj trade & transport company ltd share price Management discussions

TAJ TRADE AND TRANSPORT COMPANY LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS 2007-2008 2006-2007 Rupees Rupees Total Income 19,04,20,383 15,52,16,512 Operating Profit for the year 2,69,60,579 2,45,99,040 Depreciation (62,75,821) (97,78,944) Profit Before Tax 2,06,84,758 1,48,20,096 Provision for Current Tax (73,00,000) (49,00,000) Provision for Deferred Tax 5,90,000 (11,78,000) Provision for Fringe Benefit Tax (7,00,000) (7,70,000) Excess/(Short) Provision for (4,15,000) - Taxation relating to earlier years Profit After Tax 1,28,59,758 79,72,096 Balance brought forward 2,02,41,792 1,86,00,317 from previous year Profit available for appropriation 3,31,01,550 2,65,72,413 APPROPRIATIONS Dividend - Interim Dividend - 52,02,382 - Proposed Dividend 86,70,563 - - Tax on Dividend 14,73,562 7,29,634 Transfer to General Reserve 12,85,976 3,98,605 Profit & Loss Account Balance 2,16,71,449 2,02,41,792 3,31,01,550 2,65,72,413 OPERATIONS During the year under review, your Company recorded improved performance of 22% in terms of revenue as compared to the previous year. The Profit Before Tax has, however, shown an increase of 40% as compared to the previous year, owing to stringent cost control and lower input costs. The Company has spent an amount of Rs.70 lakhs for a complete renovation of its premium Taj Khazana shop at Taj Palace, Delhi. The response to the new shop has been better than expected. The Beauty Salons are also expanding and the Company has opened up salons at three new locations viz. Taj Residency Ummed, Ahmedabad, Taj Residency, Lucknow and Taj Connemara, Chennai, in the last financial year. During the financial year 2008-09, the Taj Khazana shops at Taj Bengal, Kolkata, Tai Coromandel, Chennai and FABR, Goa are proposed to be renovated. The Company is also opening up a new premium shop at ITPL Bangalore (a new Premium Hotel of the Taj Group) by July 2008. The salon at Taj President, Mumbai . is currently undergoing complete renovation and is expected to open-up with an exclusive look and feel by October 2008. A salon at Hotel Chandela, Khajuraho is also proposed to be opened very soon.