Section V - MANAGEMENT DISCUSSION & ANALYSIS
 
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Shareholders’ Fund
Total shareholder funds stood at Rs 17,496.99 million as on 31st March 2009 as against Rs 14,693.78 million as on 31st March 2008, an increase by 19%.

As per the Companies Act, 1956 your Company has transferred 10% of the net profit of the current year to General Reserve. The balance in the Profit and loss account as on 31st March 2009 stood at Rs 11,095.99 million.
Loan Funds
During the year the Company repurchased 9,500 Zero Coupon Convertible Bonds (ZCCBs) of face value of US$ 1,000 each at an average discount of 37.57% on book value, resulting in gain of Rs 115.34 million (Net of expenses) which has been disclosed as part of Other Income. Consequent upon such repurchase, the repurchased 9,500 ZCCBs stands cancelled. As on 31st March 2009 the value of ZCCBs outstanding is Rs 4,610.98 million (US$ 90.5 million).
Deferred Tax Liability
As on 31st March 2009, the Company reported accrual of total deferred tax liability of Rs 166.70 million. Deferred tax assets and liabilities are recognised for future tax consequence attributable to timing difference between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured at substantively enacted tax rates.
Fixed Assets
  In Rs million
As on March 31 2009 2008 Growth
Leasehold land 78.55 68.82 14%
Building 18.08 18.08 N.A.
Improvement to leasehold premises 41.51
 20.85
 99%
Office equipment (including computer hardware) 199.66 132.47
 51%
Furniture & Fixtures 24.69 14.16 74%
Vehicles 24.74 14.54 70%
Intangible assets including software, technical know-how etc. 290.76
 189.10
 54%
Gross Block 677.99 458.02 48%
Less: Accumulated depreciation / amortisation 146.34
 77.51
 89%
Net Block 531.65 380.51 40%
Capital work-in-progress 2,309.43 1,692.09 36%
Total Fixed Assets 2,841.08 2,072.61 37%
 
During the year, there was net addition of Rs 219.97 million to gross block comprising mainly of computer software, office equipment and improvement to leasehold premises. The total fixed assets as on 31st March 2009 stood at Rs 2,841.08 million, an increase of 37% over the previous year. During the year, capital work-in-progress increased to Rs 2,309.43 million from Rs 1,692.09 million mainly on account of building of the state-of-the-art development center / office building.
 
 
Investments
Investment by the Company stood at Rs 14,444.65 million as at 31st March 2009, as compared to Rs 13,743.26 million as at 31st March 2008. The investments mainly comprise of investments in mutual funds, subsidiaries, joint venture and associate companies.
Current Assets, Loans & Advances
Your Company’s total current assets, loans and advances position as at 31st March 2009 is Rs 6,438.76 million as compared to Rs 4,128.88 million in the previous year.

Cash and bank balances were higher at Rs 4,407.68 million from Rs 3,502.47 million last year. The said increase was primarily on account of operational surplus generated during the year.
 
Break up of Cash and Bank Balances (in Rs million)
  As at
31st March 2009		 As at
31st March 2008
Deposits Accounts (FDR) 3,849.80 3,307.92
Current Account 557.88 194.55
TOTAL 4,407.68 3,502.47
 
Sundry Debtors outstanding amounted to Rs 840.14 million (net of provisions) as at 31st March 2009 as compared to Rs 189.64 million in the previous year. The substantial increase in amount due is result of export sales in the last quarter of the financial year. These debtors outstanding are considered good and realisable.

LLoans and advances (net of provision) amounted to Rs 1,085.88 million as against Rs. 416.20 million in the previous financial year. Increase is mainly due to loans and advances to subsidiary companies, security deposit placed for rented premises and advance payment of income taxes. Other current asset increased from Rs 20.18 million in FY 2007-08 to Rs 105.05 million in FY 2008-09 mainly due to interest accrued on FDRs.
Current liabilities and provisions
At the end of 31st March 2009, the Company’s current liabilities stood at Rs 734.13 million, of which Rs 459.48 million was outstanding to creditors. In comparison, the current liabilities in the previous year was Rs 600.81 million, of which Rs 394.29 million was outstanding to creditors.

Provisions at the year end stood at Rs 1,068.31 million as compared to Rs 666.63 million in the previous year. It includes a provision of Rs 887.84 million towards premium on redemption of ZCCBs as compared to Rs 415.99 million in the previous year. The Company provided Rs 107.36 million for final dividend to equity shareholders and the dividend tax thereof.