Coromandel Fertilisers Limited (CFL) has turned out yet another year of sustained

Coromandel Fertilisers Limited (CFL) has turned out yet another year of sustained performance. During the year, Godavari Fertilisers And Chemicals Limited (GFCL) was amalgamated with the Company. The results of the current financial year include those of GFCL and hence, are not comparable with the corresponding previous period.

The Board of Directors of Coromandel Fertilisers Limited approved the audited financial results for the year ended March 31, 2008. During the year the company achieved a total income of Rs.3800.11 crore (Previous year : Rs. 2084.22 crore). The profit before depreciation, interest and taxes for the year is Rs.455.38 crore (previous year Rs.218.12 crore).

The Profit Before Tax is Rs.333.42 crore in 2007-08 compared to Rs. 146.35 crore in 2006-07. The profit after tax for the year is Rs.209.76 crore (Previous year Rs.100.74 crore).

The Company continued to improve on its performance/profitability despite steep increase in the price of key raw materials. The improved profitability has been mainly due to improved operating efficiencies, recognition of raw material prices in subsidy with one month lag instead of three months lag reckoned earlier and increased share of contribution from non fertilizer businesses like Pesticides and Specialty nutrients divisions.

The Profit for the quarter and year ended March 31, 2008 is after reckoning a loss of Rs.12.92 crore (previous Year Rs.Nil) due to Mark to Market valuation of ‘Special Bonds’ issued by Govt. of India, towards settlement of its subsidy dues.

The Profit After Tax in the previous year is after reckoning the tax relief on account of the carry forward losses/depreciation of Ficom Organics Limited which was amalgamated with the Company during the previous financial year.

During the year the scheme of amalgamation of Godavari Fertilisers and Chemicals Limited (GFCL) with the company was approved by the Hon’ble High Corut of Andhra Pradesh effective April 1 , 2007 and the order was filed with the Registrar of Companies, Andhra Pradesh to complete the process of amalgamation. In terms of the scheme the company has allotted 12037182 equity shares of Rs.2/- each as fully paid up to the shareholders of GFCL in the proportion of three fully paid up equity shares of Rs.2/- each of the company for every two fully paid up equity shares of Rs.10/- each of GFCL.

The Board of Directors recommended payment of dividend of 175% as against 100% paid last year.

A copy of the advice to the Stock Exchanges giving the highlights of the audited financial results for the year ended March 31, 2008 approved by the Board of Directors of the Company on April 22, 2008 is attached.

Coromandel Fertilisers Limited, is a constituent of Murugappa Group which has a turnover of over US $ 2.0 Billion, is a pioneer and market leader in several fields of business with manufacturing operations across 12 states in the Country. The Group has a strong presence in Abrasives, Engineering, Bio-products, Sanitaryware, Sugar, Fertilisers, Pesticides, Finance, General Insurance, Plantations and Nutraceuticals.