VISA Steel Limited Annual Report 2007-08

REPORT OF THEDIRECTORSDear Shareholders,Your Directors are pleased to present the Twelfth Annual Report together with the auditedaccounts of the Company for the year ended 31 March 2008.FINANCIAL RESULTS(Rs. Million)PARTICULARS 2007-08 2006-07Net Revenue 6,807.65 5,311.80Other Income 20.40 67.48Total Income 6,828.05 5,379.28Profi t before interest, depreciation & tax 939.28 463.64Interest (Net) 85.34 22.92Depreciation 182.59 97.67Profi t before Taxation 671.35 343.05Taxation – Current 84.00 39.00– Deferred 151.27 93.84– Fringe Benefi t Tax 4.60 5.00Profi t after Tax 431.48 205.21Balance brought forward 329.98 124.77Appropriation - Proposed Dividend 110.00 -- Corporate Tax on Dividend 18.69 -Balance Carried to Balance Sheet 632.77 329.98OPERATIONSDuring the year under review, your Companyhas exceeded expectations and recorded arobust fi nancial performance with revenuegrowth of 27% to Rs. 6,828.1 million, PBTgrowth of 96% to Rs. 671.4 million and PATgrowth of 110% to Rs. 431.5 million.The Coke production grew by 196% to176,422 MT in 2007-08 from 59,643 MT inthe previous fi nancial year. The new pushercar has been commissioned which shallfurther improve capacity utilisation.In 2007-08, your Company achieved HotMetal production from the Blast Furnace of67,330 MT from 181,086 MT in the previousfi nancial year due to shutdown for refractorylining, disruption in iron ore supplies andpower trippages. The 220 KV power linehas been commissioned and the relining ofFurnace is nearing completion.Your Company commissioned 50,000 TPAFerro Chrome Plant in November 2007 andproduced 18,014 MT of Ferro Chrome duringthe year. The full year benefi t shall comefrom 2008-09 onwards.The project work of 300,000 TPA Sponge IronPlant and the 2x25 MW Waste Heat RecoveryCaptive Power Plant is in the final stages ofcompletion and shall generate revenues fromsecond quarter of 2008-09 onwards.The project work for 0.5 million TPA Specialand Stainless Steel Plant, 0.5 million TPABar & Wire Rod Mill and an additional 25MW Power Plant is progressing satisfactorily.Whilst there have been some delays due toshortage of manpower from contractors, lawand order problems and delay in equipmentdeliveries, we have been able to make rapidprogress compared to our peers.A detailed analysis of your Company’soperations, segment-wise performance,project review, risk management, strategicinitiatives and fi nancial review & analysis,as stipulated under Clause 49 of the ListingAgreement with the Stock Exchanges ispresented under a separate section titled“Management Discussion & Analysis Report”forming part of the Annual Report.DIVIDENDIn view of the performance and keeping inview the fund requirements of your Companyfor its expansion plans, your DirectorsAnnual Report 2007-0829