thamarapally rubber company ltd Management discussions

THE THAMARAPALLY RUBBER COMPANY LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS Performance: The Company reported a net profit before exceptional items and appropriations of Rs.50,93,593 for the year compared to a net profit of Rs.60,84,274 for the previous year. During the year under review the company achieved a PBDT (Profit before depreciation and tax) of Rs.83,57,749 (Previous year Rs.81,57,358). The marginal increase of 2.4% PBDT despite a decline in sales by 9% in terms of total quantity sold can be attributed to higher sales realization, there has been a 5% growth in sales in value terms. This is principally on account of higher average price realization of Rs 70/- Kg for the financial year 2005-06 as compared to average price realization of Rs 61/- Kg per kg during 2004-05. The drop in production was basically due to higher average rainfall for the year, which severely affected the total crop production. The summarised results of the Company are given below: 2005-06 2004-05 Rs. Rs. Sales of natural rubber and minor produce 1,86,56,321 1,76,49,955 Profit before taxation 62,72,639 73,34,274 Fringe benefit tax (79,046) - Provision for taxation (11,00,000) (12,50,000) Profit after taxation 50,93,593 60,84,274 NON RECURRING AND EXCEPTIONAL ITEMS: Capital profit on sale of standing rubber trees 16,70,128 31,81,569 Provision for doubtful debts written back - 13,97,500 67,63,721 1,06,63,343 Profit and loss account balance at April 1, 2005 1,38,89,480 48,96,168 Available for appropriation 2,06,53,201 1,55,59,511 Appropriations: Transfer to General Reserve (5,10,000) (6,10,000) Proposed dividend (9,37,500) (9,37,500) Corporate income tax on proposed dividend (1,31,485) (1,22,531) PROFIT AND LOSS ACCOUNT BALANCE AT MARCH 31, 2006 1,90,74,216 1,38,89,480 At March 31, 2006, the Companys total advances to two group companies, (The Nilgiri Tea Estates Limited Rs.82,09,000 and The Udayagiri Rubber Company Limited Rs.73,55,276) aggregated Rs 1,55,64,276.