KAIRA CAN COMPANY LIMITED
ANNUAL REPORT 2009-2010
MANAGEMENT DISCUSSION AND ANALYSIS
REVIEW OF OPERATIONS
The Company has achieved a total sales turnover of Rs.10,602 lakhs for the
year ended 31st March, 2010, as compared to Rs. 11,792 lakhs for the
previous year, a drop of 10%. The decline is attributed mainly to two
factors. As mentioned in the previous year's Directors' Report, the
permanent workmen at our Anand and Kanjari units had resorted to total
stoppage of work/illegal strike during the month of April 2009, with the
result our sales of OTS cans to the customers were badly affected during
the peak period of mango season. Secondly, our exports of metal components
to Dubai were substantially reduced due to financial crisis of Middle East
As a result of the above, the Company could achieve a turnover of Rs. 9,326
lakhs of metal cans and its components during the year under review as
compared to Rs.10,785 lakhs for the previous year - a reduction of 14%. The
Company could only execute export orders worth Rs. 1,207 lakhs of metal
components as against Rs. 1,848 lakhs for the previous year - a substantial
drop of 35%.
However, the net operating profit for the year has been substantially
increased to Rs.197 lakhs. The growth is attributed mainly due to overall
cost reduction measures taken by the Company resulting into better
management of cash flow.
The Milk and Milk products division has achieved job-work earnings to the
tune of Rs. 511 lakhs during the year ended 31st March, 2010.
Sugar Cone Division has achieved a sales turnover of Rs. 425 lakhs as
compared to Rs. 439 lakhs for the previous year.
Good news is that slowdown in the global economy prevailing for the past
two years has been arrested and there are definite signs of improvement.
Number of proposals being implemented by the Government are stimulating
industrial growth and improving the climate of investment. The reform
process initiated by the Government is showing positive results in the
growth of the country's economy. The data released recently points to a
continuous growth in industrial output of the county.
With the consistent and vigorous efforts being made by the Company for cost
reduction measures coupled with efficient monitoring of working capital,
Company expects improved performance for the current year.