Annexure XIV Continued… - Edelweiss

purchase of our new corporate office and headquarters in May 2008. Depreciation as a percentage of total
income decreased from 7.20% in Fiscal 2008 to 5.21% in Fiscal 2009.
Finance cost
Finance costs increased by ` 45.11 million, or 18.39%, to ` 290.45 million in Fiscal 2009 from ` 245.34
million in Fiscal 2008, primarily due to increase in our borrowings of term loans and working capital loans.
Finance costs as a percentage of total income decreased from 4.40% in Fiscal 2008 to 3.11% in Fiscal 2009.
Profit before tax and adjustments
As a result of the foregoing, profit before taxation increased by ` 2,241.69 million, or 200.57%, to ` 3,359.35
million in Fiscal 2009 from ` 1,117.66 million in Fiscal 2008.
Provision for tax
The provision for tax liabilities increased by ` 550.32 million, or 99.14%, to ` 1,105.39 million in Fiscal 2009
from ` 555.07 million in Fiscal 2008. The increase in provision for taxation was primarily due to higher
income of the Company in Fiscal 2009, which increased to ` 3,410.66 million from ` 1,195.50 million in
Fiscal 2008.
Profit after tax
As a result of the foregoing, net profit after tax (before adjustments) increased by ` 1,692.12 million, or
301.17%, to ` 2,253.96 million in Fiscal 2009 from ` 561.84 million in Fiscal 2008. As a percentage of total
income, net profit after tax increased to 24.14% in Fiscal 2009 from 10.07% in Fiscal 2008.
Restatement
Our profit for Fiscal 2009 decreased by ` 77.92 million and our profit for Fiscal 2008 increased by ` 235.71
million as a result of adjustments for prior period items and restatements in accordance with ICDR
Regulations. For details of these adjustments, please see Annexure IV to our restated consolidated financial
information included on page F-17 of this Draft Red Herring Prospectus.
Comparison of Fiscal 2008 and Fiscal 2007
Income
The following table sets forth our income from our businesses for Fiscal 2007 and Fiscal 2008:
Fiscal Fiscal Variation
2007 2008 %
(` in millions)
Coal beneficiation and allied receipts ............................................ 2,169.01 2,324.22 7.16%
Sale of coal .................................................................................... 651.00 1,940.54 198.09%
Sale of power ................................................................................. 130.10 569.80 337.97%
Sale of sponge iron (1) .................................................................... 250.42 545.34 117.77%
Sale of equipment .......................................................................... 15.57 24.68 58.51%
Other income ................................................................................ 171.22 174.59 1.97%
Total ............................................................................................. 3,387.32 5,579.17 64.71%
(1) We sold our sponge iron business on April 9, 2011.
Our total income increased by ` 2,191.85 million, or 64.71%, to ` 5,579.17 million in Fiscal 2008 from `
3,387.32 million in Fiscal 2007, primarily as a result of an increase in sale of coal and the full year effect of the
increased power generation capacity resulting from the commencement of operations at our 30 MW Chakabura
Power Plant. The results for Fiscal 2008 include the operations of our 30 MW Chakabura Power Plant for the
entire year compared to only one month of operations included in the results for 2007.
Coal beneficiation and allied receipts
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