School : LIM

Department of Management
Name of the faculty member :
Sukhwinder Kaur
Course No. MGT515
Course Title: Managerial Economics
Class: MBA
Semester I
Section: T1001
Batch 2010-12
Name: Anuj Kumar
Roll No. B45
Registration No.11009862
ESAB INDIA LTD,
Introduction,
ESAB India Limited started its operations in 1987 by acquiring
the welding business of Peico Electronics & Electricals Limited
(now Philips India Limited). The Company continued its
expansion in the Indian market with the purchase of Indian
Oxygen Limited's welding business in 1991 and Flotech Welding
& Cutting Systems Limited in 1992, followed by the merger of
Maharashtra Weldaids Limited in 1994.
ESAB India Limited is owned 55.56% by the ESAB Group. The
remainder of its shares are held widely. The company is listed on
the stock exchanges of Mumbai and the National Stock
Exchange. Mr. Michael Foster is the Chairman of the Company.
Today, ESAB India has established itself as one of the leading
suppliers of welding and cutting products in the country. ESAB
products are now an integral part of industries like Shipbuilding,
Petrochemical, Construction, Transport, Offshore, Energy and
Repair and Maintenance.
ESAB India's initiative on Total Quality Management has resulted
in ISO 9000 and ISO 14000 certifications for four of its principal
manufacturing facilities located at Kolkata, Chennai and Nagpur.
Further, the skills, know-how and resources at its Research and
Development Departments, have helped the Company to offer a
wide range of world-class products for diverse applications, cost
effectively.

ESAB India has a wide and comprehensive range of welding, cutting and allied
products and services. The product range covers Welding Consumables, Reclamation
Consumables, Arc Equipment, Industrial Gas Equipment, Cutting Machines and
Working Environment Products for your specialized welding, cutting and allied needs.
These are manufactured to stringent quality control measures in the state-of-the-art
manufacturing units.

ESAB India also markets the latest generation of Welding Consumables and
equipment and cutting machines from other group companies located outside India and
thereby acts as a one-point source for all the needs of the industry. ESAB India also
manufactures and markets medical gas equipment.

Plot No.13, 3rd Main Road, Industrial Estate,

Ambattur, Chennai – 600 058.

Tel: 044-42281100

Fax:044-42281150
ESAB INDIA LIMITED
Welding Consumables Factory
B.T. Road, Khardah
PO: B. D. Sopan
Kolkata– 700 116
Tel. +91+33 25532897/98
Fax :+91+33 25532429

ESAB INDIA LIMITED

Equipment Factory
P-41 Taratala Road, Kolkata– 700 088
Tel.+91+33 24014517/18/19
Fax +91+33 24011880/4427
ESAB INDIA LIMITED
Welding Consumables Factory
Plot No. 13, 3rd Main Road
Industrial Estate, Ambattur, Chennai – 600 058
Tel. +91+44 43404611
Fax +91+44 26253108

The Bombay Stock Exchange Limited

Approximate 9300 in current year..

Metal Products manufacturer

Esab India Limited is engaged in the business of welding consumables, which includes
welding electrodes, copper coated wires, flux cored wires and welding fluxes and of
welding equipment, which includes welding machines and cutting equipment. 37.31%
and 18.25% of the Company's shares are held by Esab Holdings Limited and Exelvia
Group India BV respectively. It has two segments: Consumables and Equipment.
Consumables include welding electrodes.

Increase/Decrea %a Increase/Decr %a
se ge ease ge
Esab India
Balance Sheet
 Dec '07 Dec '08 Dec '09

Sources Of Funds
0.0
Total Share Capital 15.39 0 0 15.39 0 15.39
0.0
Equity Share Capital 15.39 0 0 15.39 0 15.39
Share Application Money 0 0 0 0
Preference Share Capital 0 0 0 0
37. 24.
Reserves 88.36 33.27 65 121.63 30.17 80 151.8
Revaluation Reserves 0 0 0 0 0
32. 22.
Networth 103.75 33.27 07 137.02 30.17 02 167.19
Secured Loans 0 0 0 0 0
Unsecured Loans 0 0 0 0 0
Total Debt 0 0 0 0 0
32. 22.
Total Liabilities 103.75 33.27 07 137.02 30.17 02 167.19

Dec '07 Dec '08 Dec '09

0
Application Of Funds 0
11. 23.
Gross Block 107.57 11.85 02 119.42 28.58 93 148
11. 14.
Less: Accum. Depreciation 46.5 5.22 23 51.72 7.3 11 59.02
10. 31.
Net Block 61.07 6.63 86 67.7 21.28 43 88.98
-
94. 42.
Capital Work in Progress 6.29 5.93 28 12.22 -5.25 96 6.97
- -
28. 79.
Investments 16.7 -4.72 26 11.98 -9.51 38 2.47
-
7.8 2.0
Inventories 36.73 2.87 1 39.6 -0.8 2 38.8
-
72. 42.
Sundry Debtors 9.75 7.06 41 16.81 -7.2 83 9.61
-
39. 52.
Cash and Bank Balance 14.13 -5.6 63 8.53 4.44 05 12.97
-
7.1 5.4
Total Current Assets 60.61 4.33 4 64.94 -3.56 8 61.38
12. 23.
Loans and Advances 19.93 2.55 79 22.48 5.29 53 27.77
189
3.6 58.
Fixed Deposits 1.42 26.89 6 28.31 16.67 88 44.98
41. 15.
Total CA, Loans & Advances 81.96 33.77 20 115.73 18.4 90 134.13
Deferred Credit 0 0 0 0 0
-
4.4 9.6
Current Liabilities 55.53 -2.48 7 53.05 5.13 7 58.18
Provisions 6.74 10.81 160 17.55 -10.38 - 7.17
.39 59.
 15
-
13. 7.4
Total CL & Provisions 62.27 8.33 38 70.6 -5.25 4 65.35
129 52.
Net Current Assets 19.69 25.44 .20 45.13 23.65 40 68.78
Miscellaneous Expenses 0 0 0 0 0

32. 22.
Total Assets 103.75 33.28 08 137.03 30.17 02 167.2
0 0
-
27. 4.8
Contingent Liabilities 32.89 9.03 46 41.92 -2.02 2 39.9
32. 22.
Book Value (Rs) 67.41 21.61 06 89.02 19.59 01 108.61
Analysis:

1. Total liabilities/Assets up by 33.2% by 2008 and 22.02% by 2009.

2. Net worth up by 32.7% by 2008 and 22.02 by 2009 that means
financial position is not good we can say it’s ok.
3. Net current assets higher by 129.20% by 2008 and 52.40% by 2009
its huge growth in 2008 but not consistent in 2009.
4. Investment has decreases by 28.26% in 2008 and 9.51% by 2009 its
shows week financial position by 2009.
5. Current liabilities have decreases by28.26% in 2008 and again its
increase by 9.67% in 2009 its growth comparatively.
6. Management of receivable deficient as sundry debtors grew
disproportionately high by 72.41% by 2008 and its decreases by
42.83% by 2009 its showing that less goods are sold on credit.

Profit & Loss account

Dec Increase/Dec %a Dec Increase/Dec %ag Dec
'07 rease ge '08 rease e '09

Income
Sales Turnover 394.6 85.1 21. 479.7 -24.15 - 455.5
 2 57 2 5.03 7
-
6.2 39.7
Excise Duty 49.62 3.1 5 52.72 -20.97 8 31.75
23. - 423.8
Net Sales 345 82 77 427 -3.18 0.74 2
59. 17.0
Other Income 2.98 1.77 40 4.75 0.81 5 5.56
- -
18. 127.
Stock Adjustments 4.39 -0.82 68 3.57 -4.55 45 -0.98
352.3 23. 435.3 -
Total Income 7 82.95 54 2 -6.92 1.59 428.4
Expenditure 0 0
206.5 26. 260.9 - 244.3
Raw Materials 7 54.39 33 6 -16.59 6.36 7
13.
Power & Fuel Cost 6.6 0.87 18 7.47 0.34 4.55 7.81
-
26. 10.6
Employee Cost 25.29 6.68 41 31.97 -3.4 3 28.57
34. 21.9
Other Manufacturing Expenses 0.98 0.34 69 1.32 0.29 7 1.61
21. 12.1
Selling and Admin Expenses 20.99 4.54 63 25.53 3.11 8 28.64
37. -
Miscellaneous Expenses 6.19 2.32 48 8.51 -0.64 7.52 7.87
Preoperative Exp Capitalised 0 0 0 0 0
266.6 25. 335.7 - 318.8
Total Expenses 2 69.14 93 6 -16.89 5.03 7
Dec Dec Dec
'07 '08 '09
0 0
14. 103.9
Operating Profit 82.77 12.04 55 94.81 9.16 9.66 7
16. 10.0 109.5
PBDIT 85.75 13.81 10 99.56 9.97 1 3
4.5 -
Interest 0.88 0.04 5 0.92 -0.09 9.78 0.83
16. 10.2
PBDT 84.87 13.77 22 98.64 10.06 0 108.7
18. 16.1
Depreciation 5.61 1.06 89 6.67 1.08 9 7.75
Other Written Off 0 0 0 0 0
16. 100.9
Profit Before Tax 79.26 12.71 04 91.97 8.98 9.76 5
- -
66. 100.
Extra-ordinary items 1.68 -1.12 67 0.56 -0.56 00 0
14. 100.9
PBT (Post Extra-ord Items) 80.94 11.59 32 92.53 8.42 9.10 5
13. 10.7
Tax 27.53 3.81 84 31.34 3.37 5 34.71
14.
Reported Net Profit 53.4 7.78 57 61.18 5 8.17 66.18
24. -
Total Value Addition 60.06 14.73 53 74.79 -0.29 0.39 74.5
Preference Dividend 0 0 0 0 0
0.0 29.0
Equity Dividend 23.86 0 0 23.86 6.93 4 30.79
6.5 29.1
Corporate Dividend Tax 3.8 0.25 8 4.05 1.18 4 5.23
Per share data (annualized) 0 0
153.9 0.0 153.9 153.9
,Shares in issue (lakhs) 3 0 0 3 0 0.00 3
 14.
Earning Per Share (Rs) 34.69 5.06 59 39.75 3.25 8.18 43
0.0 29.0
Equity Dividend (%) 155 0 0 155 45 3 200
32. 22.0 108.6
Book Value (Rs) 67.41 21.61 06 89.02 19.59 1 1
Analysis:

1. Net sales up by 23.77% by 2008 and down by 0.74% by 2009 it’s

decreases in net sales.
2. Increase in expanses like manufacturing expanse (34.69%)and
(21.97%) miscellaneous expanse(37.48) in 2008 but it’s down by
7.52% in 2009 so total expanse decrease by 5.03% in 2009.
3. Depreciation up by 18.89% by 2008 and 16.19% by 2009 which effect
higher net sales.
4. Total expanse decreases by 5.3% and net sales also go down by
0.74% so not much of growth showing in 2009.
5. Growth in income by 23.54% I 2008 and down by 1.59% in 2009.
6. The Result: company has not been maintaining growth equal to sales.
PBT has grown by just 16.4% in 2008 and 9.76% in 2009.

Dec common Dec Common Dec common

'07 Size %age '08 Size %age '09 Size %age
Sources Of Funds
15.3 15.3 15.3
Total Share Capital 9 14.83 9 11.23 9 9.20
15.3 15.3 15.3
Equity Share Capital 9 14.83 9 11.23 9 9.20
Share Application
Money 0 0.00 0 0.00 0 0.00
Preference Share
Capital 0 0.00 0 0.00 0 0.00
Reserves 88.3 85.17 121. 88.76 151. 90.79
 6 63 8
Revaluation Reserves 0 0.00 0 0.00 0 0.00
103. 137. 167.
Networth 75 100.00 02 99.99 19 99.99
Secured Loans 0 0.00 0 0.00 0 0.00
Unsecured Loans 0 0.00 0 0.00 0 0.00
Total Debt 0 0.00 0 0.00 0 0.00
103. 137. 167.
Total Liabilities 75 100.00 02 99.99 19 99.99
Dec Dec Dec
'07 '08 '09

Application Of Funds 0.00 0.00 0.00

107. 119.
Gross Block 57 103.68 42 87.15 148 88.52
Less: Accum. 51.7 59.0
Depreciation 46.5 44.82 2 37.74 2 35.30
61.0 88.9
Net Block 7 58.86 67.7 49.41 8 53.22
12.2
Capital Work in Progress 6.29 6.06 2 8.92 6.97 4.17
11.9
Investments 16.7 16.10 8 8.74 2.47 1.48
36.7
Inventories 3 35.40 39.6 28.90 38.8 23.21
16.8
Sundry Debtors 9.75 9.40 1 12.27 9.61 5.75
14.1 12.9
Cash and Bank Balance 3 13.62 8.53 6.22 7 7.76
60.6 64.9 61.3
Total Current Assets 1 58.42 4 47.39 8 36.71
19.9 22.4 27.7
Loans and Advances 3 19.21 8 16.41 7 16.61
28.3 44.9
Fixed Deposits 1.42 1.37 1 20.66 8 26.90
Total CA, Loans & 81.9 115. 134.
Advances 6 79.00 73 84.46 13 80.22
Deffered Credit 0 0.00 0 0.00 0 0.00
55.5 53.0 58.1
Current Liabilities 3 53.52 5 38.71 8 34.80
17.5
Provisions 6.74 6.50 5 12.81 7.17 4.29
62.2 65.3
Total CL & Provisions 7 60.02 70.6 51.52 5 39.08
19.6 45.1 68.7
Net Current Assets 9 18.98 3 32.93 8 41.14
Miscellaneous Expenses 0 0.00 0 0.00 0 0.00
103. 137. 167.
Total Assets 75 100.00 03 100.00 2 100.00
0.00 0.00 0.00
32.8 41.9
Contingent Liabilities 9 31.70 2 30.59 39.9 23.86
Book Value (Rs) 67.4 64.97 89.0 64.96 108. 64.96
 1 2 61

Analysis:

1. Total share capital has come down subsequently

2007 14.83%
2008 11.23%
2009 9.20%
2. There is increase in reserves so company has good financial
position for the future.
3. Net worth has been gone down by 0.1% in year 2008 and
2009.
4. Current liabilities has also been gone down, financial position
is good.
5. Over all the company has good financial position.

Dec comman Size Dec comman Size Dec comman

'07 %age '08 %age '09 Size %age

Income
394. 479. 455.
Sales Turnover 114.38 112.35 107.49
62 72 57
49.6 52.7 31.7
Excise Duty 14.38 12.35 7.49
2 2 5
423.
Net Sales 345 100.00 427 100.00 100.00
82
Other Income 2.98 0.86 4.75 1.11 5.56 1.31
Stock Adjustments 4.39 1.27 3.57 0.84 -0.98 -0.23
352. 435. 428.
Total Income 102.14 101.95 101.08
37 32 4
 Expenditure 0.00 0.00 0.00
206. 260. 244.
Raw Materials 59.88 61.11 57.66
57 96 37
Power & Fuel Cost 6.6 1.91 7.47 1.75 7.81 1.84
25.2 31.9 28.5
Employee Cost 7.33 7.49 6.74
9 7 7
Other Manufacturing
0.98 0.28 1.32 0.31 1.61 0.38
Expenses
Selling and Admin 20.9 25.5 28.6
6.08 5.98 6.76
Expenses 9 3 4
Miscellaneous Expenses 6.19 1.79 8.51 1.99 7.87 1.86
Preoperative Exp
0 0.00 0 0.00 0 0.00
Capitalised
266. 335. 318.
Total Expenses 77.28 78.63 75.24
62 76 87
Dec Dec Dec
'07 '08 '09
82.7 94.8 103.
Operating Profit 23.99 22.20 24.53
7 1 97
85.7 99.5 109.
PBDIT 24.86 23.32 25.84
5 6 53
Interest 0.88 0.26 0.92 0.22 0.83 0.20
84.8 98.6 108.
PBDT 24.60 23.10 25.65
7 4 7
Depreciation 5.61 1.63 6.67 1.56 7.75 1.83
Other Written Off 0 0.00 0 0.00 0 0.00
79.2 91.9 100.
Profit Before Tax 22.97 21.54 23.82
6 7 95
Extra-ordinary items 1.68 0.49 0.56 0.13 0 0.00
80.9 92.5 100.
PBT (Post Extra-ord Items) 23.46 21.67 23.82
4 3 95
27.5 31.3 34.7
Tax 7.98 7.34 8.19
3 4 1
61.1 66.1
Reported Net Profit 53.4 15.48 14.33 15.62
8 8
60.0 74.7
Total Value Addition 17.41 17.52 74.5 17.58
6 9
Preference Dividend 0 0.00 0 0.00 0 0.00
23.8 23.8 30.7
Equity Dividend 6.92 5.59 7.26
6 6 9
Corporate Dividend Tax 3.8 1.10 4.05 0.95 5.23 1.23
Per share data (annualised) 0.00 0.00 0.00
153. 153. 153.
Shares in issue (lakhs) 44.62 36.05 36.32
93 93 93
34.6 39.7
Earning Per Share (Rs) 10.06 9.31 43 10.15
9 5
Equity Dividend (%) 155 44.93 155 36.30 200 47.19
67.4 89.0 108.
Book Value (Rs) 19.54 20.85 25.63
1 2 61

Analysis:
1.Net sales of the company is subsequently good for last three
years.

2. Material cost as a percentage of net sales is subsequently low

the growth is like 59.88% in 2007, 61.11% in 2008 and 57.66% in
2009.

3. Expenses is also not fluctuating much 77.2% in 2007 78.60% in

2008 and 75.2% in 2009.

4. Growth can be seen in other income also 0.86% in 2007 1.11% in

2008 and 1.31% in 2009.

5. Result: PBDIT has down little bit in 2008 it was 24.86 in 2007,
23.3% in 2008 and 25.8% in 2009.

6. Depreciation cost as a percentage of net sales more or less in

the same ratio in last three years.

7. PBT is slightly up by 2009 it’s 23.46% in 2007, 21.67% in 2008

and 23.82% in 2009.

8. Ultimately due to up in Taxes Company has not been made more

margins.

9. Overall there is declined in 2008 after 2007 but again it’s come
up in 2009. If company wants to increase their profit there is effort
required.
 Dec %ag Dec Dec
'07 e '08 %age '09 %age

Sources Of Funds
15.3 100. 15.3 100.0 15.3 100.0
Total Share Capital 9 00 9 0 9 0
Equity Share 15.3 100. 15.3 100.0 15.3 100.0
Capital 9 00 9 0 9 0
Share Application
Money 0 0 0
Preference Share
Capital 0 0 0
88.3 100. 121. 137.6 151. 171.8
Reserves 6 00 63 5 8 0
Revaluation
Reserves 0 0 0
103. 100. 137. 132.0 167. 161.1
Networth 75 00 02 7 19 5
Secured Loans 0 0 0
Unsecured Loans 0 0 0
Total Debt 0 0 0
103. 100. 137. 132.0 167. 161.1
Total Liabilities 75 00 02 7 19 5
Dec Dec Dec
'07 '08 '09
Application Of
Funds
107. 100. 119. 111.0 137.5
Gross Block 57 00 42 2 148 8
Less: Accum. 100. 51.7 111.2 59.0 126.9
Depreciation 46.5 00 2 3 2 2
61.0 100. 110.8 88.9 145.7
Net Block 7 00 67.7 6 8 0
Capital Work in 100. 12.2 194.2 110.8
Progress 6.29 00 2 8 6.97 1
100. 11.9
Investments 16.7 00 8 71.74 2.47 14.79
 36.7 100. 107.8 105.6
Inventories 3 00 39.6 1 38.8 4
100. 16.8 172.4
Sundry Debtors 9.75 00 1 1 9.61 98.56
Cash and Bank 14.1 100. 12.9
Balance 3 00 8.53 60.37 7 91.79
Total Current 60.6 100. 64.9 107.1 61.3 101.2
Assets 1 00 4 4 8 7
Loans and 19.9 100. 22.4 112.7 27.7 139.3
Advances 3 00 8 9 7 4
100. 28.3 1993. 44.9 3167.
Fixed Deposits 1.42 00 1 66 8 61
Total CA, Loans & 81.9 100. 115. 141.2 134. 163.6
Advances 6 00 73 0 13 5
Deffered Credit 0 0 0
55.5 100. 53.0 58.1 104.7
Current Liabilities 3 00 5 95.53 8 7
100. 17.5 260.3 106.3
Provisions 6.74 00 5 9 7.17 8
Total CL & 62.2 100. 113.3 65.3 104.9
Provisions 7 00 70.6 8 5 5
19.6 100. 45.1 229.2 68.7 349.3
Net Current Assets 9 00 3 0 8 1
Miscellaneous
Expenses 0 0 0
103. 100. 137. 132.0 167. 161.1
Total Assets 75 00 03 8 2 6
Contingent 32.8 100. 41.9 127.4 121.3
Liabilities 9 00 2 6 39.9 1
67.4 100. 89.0 132.0 108. 161.1
Book Value (Rs) 1 00 2 6 61 2

Dec %ag Dec %ag Dec

'07 e '08 e '09 %age

Income
394. 479. 121. 455. 115.
Sales Turnover 62 100 72 57 57 45
49.6 52.7 106. 31.7 63.9
Excise Duty 2 100 2 25 5 9
123. 423. 122.
Net Sales 345 100 427 77 82 85
159. 186.
Other Income 2.98 100 4.75 40 5.56 58
Stock Adjustments 4.39 100 3.57 81.3 -0.98 -
 22.3
2 2
352. 435. 123. 428. 121.
Total Income 37 100 32 54 4 58
Expenditure
206. 260. 126. 244. 118.
Raw Materials 57 100 96 33 37 30
113. 118.
Power & Fuel Cost 6.6 100 7.47 18 7.81 33
25.2 31.9 126. 28.5 112.
Employee Cost 9 100 7 41 7 97
Other Manufacturing 134. 164.
Expenses 0.98 100 1.32 69 1.61 29
Selling and Admin 20.9 25.5 121. 28.6 136.
Expenses 9 100 3 63 4 45
137. 127.
Miscellaneous Expenses 6.19 100 8.51 48 7.87 14
Preoperative Exp
Capitalised 0 0 0
266. 335. 125. 318. 119.
Total Expenses 62 100 76 93 87 60
Dec Dec Dec
'07 '08 '09
82.7 94.8 114. 103. 125.
Operating Profit 7 100 1 55 97 61
85.7 99.5 116. 109. 127.
PBDIT 5 100 6 10 53 73
104. 94.3
Interest 0.88 100 0.92 55 0.83 2
84.8 98.6 116. 108. 128.
PBDT 7 100 4 22 7 08
118. 138.
Depreciation 5.61 100 6.67 89 7.75 15
Other Written Off 0 0 0
79.2 91.9 116. 100. 127.
Profit Before Tax 6 100 7 04 95 37
33.3
Extra-ordinary items 1.68 100 0.56 3 0 0.00
80.9 92.5 114. 100. 124.
PBT (Post Extra-ord Items) 4 100 3 32 95 72
27.5 31.3 113. 34.7 126.
Tax 3 100 4 84 1 08
61.1 114. 66.1 123.
Reported Net Profit 53.4 100 8 57 8 93
60.0 74.7 124. 124.
Total Value Addition 6 100 9 53 74.5 04
Preference Dividend 0 0 0
23.8 23.8 100. 30.7 129.
Equity Dividend 6 100 6 00 9 04
106. 137.
Corporate Dividend Tax 3.8 100 4.05 58 5.23 63
Per share data
(annualised)
153. 153. 100. 153. 100.
Shares in issue (lakhs) 93 100 93 00 93 00
34.6 39.7 114. 123.
Earning Per Share (Rs) 9 100 5 59 43 96
100. 129.
Equity Dividend (%) 155 100 155 00 200 03
67.4 89.0 132. 108. 161.
Book Value (Rs) 1 100 2 06 61 12
On margine

Analysis:

1. PBT growth always much lower that the sales growth. Here so
little pressure margin.
2. Pat is also up by 114.5% in 2008 and 123.% in 2009.
3. There is rise in dividend pay around 29.9% to the year 2009.
4. Consistent rise in production in the given year subsequently.
5. Growth in gross block and sales neck to neck, sales growth even
down in the latest year.
6. Net worth growth never in line with the gross block growth
dividend distribution.
7. Margin is little low, need to increase.
8. Stagnant growth outlook unless the company improves its
efficiency.

Chart for balance sheet:

Chart for profit & Loss AC:

Distribution of Earnings — 2008

The company recorded a bust growth during the
last three years followed by a downturn in volume
and price realization in the last year. Overall a
company posted strong growth of 23% in 2008 in
net sales. Consumables business grew by over
25.6% over 2007 which growth was largely driven
by better price realization and favorable product
mix.
The equipment business recorded a growth of over
17.2% with key contributions to the growth
coming from automation and cutting system
business.
Other income grew by 27% during the year 2008
with better realization.
Manufacturing, selling and administrative
expenses for the year were in line with sales
growth and comparable with the previous year
(2007) in percentage term at 18.5% of net sales.
Sales incentive increased by 27.7 million on
account of charges in schemes to adapt to
changes in pricing parameters and product mix.