Dharani Finance Ltd Management Discussions

DHARANI FINANCE LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: The Financial results for the year ended 31st March 2012 are briefly as follows:- (Rs. in Lakhs) For the year For the year Particulars Ended Ended 31.03.2012 31.03.2011 Income through Travel Operations, Finance Services and others 351.32 293.74 Expenditure (Employee & Administrative Expenses) 197.03 188.83 Profit 154.29 104.91 Provision for diminution in value of investments 31.32 0.92 Depreciation 55.75 44.95 Interest & Bank Charges 0.81 2.93 Profit/(Loss) after depreciation & Interest 66.11 56.11 Provision for Income Tax - Current 24.30 19.00 - Deferred (3.03) (4.87) Profit/(Loss) after Tax 44.84 41.98 Surplus/(deficit) brought forward 53.20 48.74 Profit available for appropriation 98.03 90.72 APPROPRIATIONS Transfer to Statutory Reserves 8.97 8.40 Proposed Dividend 34.98 24.99 Dividend Distribution Tax 5.67 4.15 Net Surplus/(Deficit) carried over 48.41 53.20 Government of India had revised the format for Balance Sheet and Statement of Profit and Loss Account to provide more detailed information to the shareholders. Accordingly, the Balance Sheet and Profit & Loss have been presented in the revised format. This will enable the shareholders to understand and appreciate the results in a much better manner. PERFORMANCE: Income of the Company during the year 2011-12 rose to Rs.351.12. lakhs from Rs. 293.74 lakhs in the previous year. This represents an increase of 16.34%. The Company could earn a gross profit of Rs.154.29 lakhs against Rs. 104.91 lakhs in the previous year. A gain of Rs.28.48 Lakhs by selling some of its investments also contributed to this increase. Depreciation was provided at Rs.55.75 lakhs against Rs.44.95 lakhs in the previous year, an increase of 16%. OUTLOOK: The general economic situation is expected to improve in the coming years and hopefully your Company can expect better returns. The Company has opened a travel desk at the newly opened five star hotel Le Meridien, Coimbatore part of the PGP Group. It is hoped that this will bring in additional business by providing travel facilities. The Company continues in its efforts to enlarge its business by providing IT services. CORPORATE SOCIAL RESPONSIBILITY: Similarly the voluntary guidelines for Corporate Social responsibility will be introduced for adoption in due course. CAUTIONARY STATEMENT: Statements made in this report describing industry outlook as well as Companys plans, projections and expectations may constitute forwarding looking statements. Actual results may differ materially from those either expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.