2007-08 - Aditya Birla Nuvo, Ltd

More documents

Recommendations

Info

MANAGEMENT’S DISCUSSION AND ANALYSISAmidst all these challenges, the textiles business of your Company strengthened its leadership position inthe linen and wool segments. To meet the growing demand for Linen, weaving and spinning capacities ofLinen was expanded by 31 looms and 6,388 spindles respectively to reach a total capacity of 107 looms and15,340 spindles.The demand for Linen Fabric continued to remain buoyant. Strong growth has been seen in the retailsegment. To encash the opportunity, more exclusive showrooms were set up under the brand name of “LinenClub Fabrics”. In the wool segment, business focused on hank-dyed knit yarn, which is a better paying nichesegment.Your Company has disposed off Synthetic spinning during the year, in line with the strategy to exit from thisbusiness in a phased manner.The business posted revenues at Rs. 594.9 Crores, lower by 5% as compared to Rs. 625.0 Crores achieved inthe previous year. Excluding the synthetic yarn segment, which was completely exited in October 2007,revenues from continued operations grew by 10%, on a like-to-like basis. The operating profit was maintaineddespite weak US Dollar, down sizing of synthetic spinning segment and steep rise in wool prices. The businessalso realised Rs. 2.4 Crores from the sale of carbon credits during the year.Business OutlookChina is the major player in Global Textile Trade. Rising wages and inflation in China, repetitive hike in interestrates and faster appreciation of Yuan might bring competitiveness of Chinese Exporters at par with Indianplayers. Recent appreciation of US Dollar against Indian Rupee could bring some cheer to the Indian TextileIndustry. Global slowdown remains a cause of concern.Domestic demand is expected to remain robust, more so in view of higher disposable income. Demand forLifestyle products is increasing and Linen comes under that category. To enhance its presence in high payingretail segment, your Company is planning to open more exclusive showrooms for Linen Fabric, besidesincreasing network of multi-brand outlets. To improve the overall profitability of the business, your Companywill leverage the expanded capacity of linen yarn and fabrics besides increasing share of value added productsin worsted segment and improving OTIF in linen segment. The business will also focus on finer counts toinsulate from Chinese exports. Price of key input greasy wool is expected to remain stable as forecast showshigher production next year. Overall, the outlook for the Indian textile industry remains positive.FINANCIAL REVIEW AND ANALYSIS – STANDALONERs. Crores2007-08 2006-07 Change (%)Net Income from Operations 3,924.2 3,420.5 15%Other Income 41.6 44.5 –7%Operating Profit (PBDIT) 633.9 603.8 5%Net Interest 179.0 171.2 5%Depreciation 141.1 120.3 17%Profit before Tax and Exceptional Items 313.8 312.3 —Exceptional Gain/(Loss) 0.7 (1.2) —Profit before Tax 314.6 311.1 1%Provision for Taxation (net) 71.5 86.1 –17%Net Profit 243.1 225.0 8%(26)
MANAGEMENT’S DISCUSSION AND ANALYSISRevenue (Rs. Crores)3,420.53,924.215%FY 07 FY 08The standalone revenues of your Company grew by 15% to Rs. 3,924.2 Crores vis-à-vis Rs. 3,420.5 Crores inthe previous year despite the plant shutdown in the Fertilisers business for nearly two and a half months inthe first half of the year. Carbon Black, Insulators and Rayon businesses posted highest ever annual revenues.Operating profit rose by 5% to Rs. 633.9 Crores vis-à-vis Rs. 603.8 Crores achieved in the previous year.The insulators and Carbon Black businesses contributed significantly to the earnings.InterestInterest expense during the year has increased from Rs. 195.4 Crores in FY 2006-07 to Rs. 204.5 Crores inFY 2007-08. Interest income for the full year has risen marginally from Rs. 24.2 Crores to Rs. 25.5 Crores.DepreciationDepreciation is higher at Rs. 141.1 Crores against Rs. 120.3 Crores in the previous year because of capacityexpansion in Carbon Black and Textiles businesses and merger of Insulators manufacturing subsidiary asstated earlier.Exceptional ItemsGain of Rs. 70 Lacs on sale of Rajshree Syntex Unit was accounted for during the year as exceptional items. InFY 2006-07, VRS cost of Rs. 1.4 Crores and gain of Rs. 20 Lacs on divestment of contract export business intoMadura Garments Export Limited were accounted for as exceptional items.Provision for TaxationThe provision for taxation (net) at Rs. 71.5 Crores is lower against Rs. 86.1 Crores in the previous year. We havewritten back tax provision of Rs. 35.8 Crores during the year against Rs. 31.3 Crores in the FY 2006-07 relatedto earlier years on completion of the assessment.Net ProfitThe net profit for the current year has risen by 8% to Rs. 243.1 Crores from Rs. 225 Crores in the previous year.Your Company’s Earnings Per Share (EPS) is at Rs. 26.1 against Rs. 25.6 in the previous year. Cash Earnings PerShare (CEPS) is also higher at Rs. 43.9 up from Rs. 41 in the FY 2006-07.DividendThe Board of Directors has recommended a dividend of 57.5% for the current year as against 55% last year.Your Company will also pay a dividend tax (including surcharge and education cess) of 17%. The dividendoutgo will therefore be Rs. 63.9 Crores.(27)
Page 2 and 3: Mr. G. D. Birla and Mr. Aditya Birl
Page 4 and 5: THE CHAIRMAN’S LETTER TO SHAREHOL
Page 7 and 8: THE CHAIRMAN’S LETTER TO SHAREHOL
Page 9 and 10: ADITYA BIRLA NUVO LIMITEDBOARD OF D
Page 11 and 12: FINANCIAL HIGHLIGHTS - STANDALONERs
Page 13 and 14: MANAGEMENT’S DISCUSSION AND ANALY
Page 27: MANAGEMENT’S DISCUSSION AND ANALY
Page 33 and 34: CORPORATE GOVERNANCE REPORTGovernan
Page 35 and 36: CORPORATE GOVERNANCE REPORT1. Manag
Page 37 and 38: CORPORATE GOVERNANCE REPORTEmployee
Page 39 and 40: CORPORATE GOVERNANCE REPORTAll the
Page 41 and 42: CORPORATE GOVERNANCE REPORTMEANS OF
Page 43 and 44: SOCIAL REPORTTranscending BusinessS
Page 45 and 46: SOCIAL REPORTMaking a difference -
Page 47 and 48: ENVIRONMENT REPORTElements for the
Page 49 and 50: SHAREHOLDER INFORMATION6c. Domestic
Page 51 and 52: SHAREHOLDER INFORMATION12. Share Tr
Page 53 and 54: SHAREHOLDER INFORMATION16. Demateri
Page 55 and 56: SHAREHOLDER INFORMATION21. Per Shar
Page 57 and 58: SHAREHOLDER INFORMATIONAccordingly,
Page 59 and 60: DIRECTORS’ REPORT TO THE SHAREHOL
Page 69 and 70: ANNEXURE ‘A’ TO THE DIRECTORS
Page 71 and 72: ANNEXURE ‘B’ TO DIRECTORS’ RE
Page 77 and 78: AUDITORS’ REPORT TO THE MEMBERSAn
Page 79 and 80:
AUDITORS’ REPORT TO THE MEMBERS(x
Page 81 and 82:
PROFIT & LOSS ACCOUNT FOR THE YEAR
Page 83 and 84:
SCHEDULESSCHEDULE 2RESERVES & SURPL
Page 85 and 86:
SCHEDULESRs. CroresAs atAs atFace V
Page 87 and 88:
SCHEDULESSCHEDULE 7INVENTORIESAs at
Page 89 and 90:
SCHEDULESRs. CroresYear EndedYear E
Page 91 and 92:
SCHEDULESSCHEDULE 19SIGNIFICANT ACC
Page 93 and 94:
SCHEDULESSCHEDULE 19 (Contd.)SIGNIF
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
SEGMENT DISCLOSURES FOR THE YEAR EN
Page 123 and 124:
CASH FLOW STATEMENT FOR THE YEAR EN
Page 125 and 126:
AUDITORS’ REPORT ON THE CONSOLIDA
Page 127 and 128:
CONSOLIDATED PROFIT & LOSS ACCOUNT
Page 129 and 130:
SCHEDULES FORMING PART OF CONSOLIDA
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
SEGMENT DISCLOSURES FOR THE YEAR EN
Page 153 and 154:
CONSOLIDATED CASH FLOW STATEMENT AS
Page 156 and 157:
ANNEXURE ‘1’ OF STATEMENT PURSU
Page 158 and 159:
STATEMENT PURSUANT TO SECTION 212(8
Page 160 and 161:
ANNEXURE ‘A’ OF STATEMENT U/S 2
Page 162 and 163:
ANNEXURE ‘A’ OF STATEMENT U/S 2
Page 164:
ADITYA BIRLA NUVO LIMITEDRegistered
show all

2007-08 - Aditya Birla Nuvo, Ltd

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?