KAMDHENU ISPAT LIMITED - Securities and Exchange Board of India

Manufacturing Expenses : These have not shown any major fluctuation and constitute 13.50% of the product
manufactured by the company. In comparison the corresponding figure for fiscal 2005 stood at 16.07%.
Excise Duty : Excise Duty constituted 9.86 % of the amount of sales of product manufactured by the company in
2005 fiscal. In comprision the corresponding figure for five month ended 31 st August ,2005 was 13.75% the change
has been due to the fact that in 2001 fiscal excise duty was 16% whereas in 2005 upto 7th July 2005 the rate of
excise duty was 8% thereafter upto February 2005 the rate of excise duty was 12% and surcharge there on and from
1st March 2005 the rate of excise duty was 16% and surcharge thereon.
Personnel Expanses : Personnel expenses, which stored at Rs.96.24 lacs for 2005 fiscal were Rs. 32.97 lacs for
the five month period ended 31 st August 2005. In percentage terms, they were 0.76% of net sales for 2005 fiscal and
0.59% of net sales upto 31 st August 2005.
Financial charges : Finance and interest charges for 2005 fiscal were Rs.34.27 lacs and for the five month
period ending August 2005 they were 20.60 lacs. In percentage terms they are 0.36% of the net sales for five month
ended 31/.8/2005 and were 0.27% of net sales for 2005 fiscal.
Depreciation : Depreciation charge as Rs. 29.01 lacs. Month ended 31 st August 2005 has been commensurate
with the block of fixed assets of the company and has been provided on SLM (Straight Line Method) of depreciation
as per the rates prescribed in schedule XIV of the companies Act 1956.
Administrative & other operating expenses : Administrative & other operating expenses were Rs.36.00 lacs for
five month period ended 31 st August 2005. compared to 65.59 lacs for the 2005 fiscal. They are 0.65% of net sales
for fiscal five months of current fiscal and were 0.52% of net sales for entire 2005 fiscal showing a small raising trend.
Selling & Distribution Expenses : Selling & distribution expenses have been Rs.58.15 lacs for first five months
of the current fiscal and were Rs. 181.53 lacs for 2005 fiscal. They were 1.48% of net sales for the year 2005 and
have been 1.04% of net sales for the five month period ended 31 st August 2005.
Fiscal 2005 as Compared to Fiscal 2004
Fiscal 2005 Fiscal 2004
Sales of Product Manufactured by company 9702.50 7011.57
Goods Traded by company 2926.60 1346.56
Other income 116.90 55.22
Raw material consumed 6680.25 4935.33
Manufacturing expenses 1559.54 655.06
Excise duty 956.97 831.37
Selling and distribution expenses 187.53 209.74
Personnel expenses 96.24 46.48
Admin. & other operating expenses 65.59 266.65
Depreciation 59.32 55.70
Net profit before taxes 263.10 180.22
Taxes 91.91 65.71
Net profit 171.19 114.51
Raw Material Consumed
Raw materials consumption as a percentage of total expenditure have come down from 61.31 % in fiscal 2004 to
53.53% in fiscal 2005 i.e by about 7.75% mainly due to increase in trading activity. Cost of goods traded in which
stood at 1225.34 lacs in 2004 more than doubled to 2802.53 lacs in 2005, having its impact on percentage raw
material consumption in the process. However, percentage of ‘raw material consumed’ to ‘sale of products manufactured
by the company’ remained stable at 68.85% in 2005 compared to 70.38% in 2004. Wastage in 2005 production
has also decreased compared to 2004 due to increased automation and adoption of new technologies and
techniques of production has lead to the decreased raw material costs.
94