kumaka industries ltd Management discussions

Industry structure and Development

Global Sterilization services market was projected to reach about USD 3.31 billion by 2022 with growth rate of 6% p.a. with 2016 as the base year. It can be mainly attributed to the major factors like rising trend of outsourcing, sterilization process and increasing focus on food sterilization.

However, it may grow exponentially due to outbreak of COVID-19.

Opportunities, Threats, Risk and Concerns

As stated in the Boards Report, starting of ETO sterilization plant in the March. 2021 was delayed due to COVID-19 pandemic. But now your Company is fully geared up for commencing the operations soon.

Looking at the increasing export of fruits, vegetables and sea food, your Company sees great opportunities ahead for food processing of these products.

However, COVID-19 advisories may adversely impact the services and transportation.

Segment wise performance

The Company is operating in single segment only and hence segment wise performance is not required to be reported.

Outlook

Commencement of ETO sterilization service coupled by greater demand due to COVID-19 would give great impetus to the activities of the Company and your Directors are optimistic for better future in the years to come.

Financial Performance

A summary of the financial performance vis-a-vis operational performance is disclosed in Boards Report.

Internal Control Systems and Adequacy

The Company has adequate internal control systems including suitable monitoring procedures commensurate with its size and the nature of the business. The internal control systems provide for all documented policies, guidelines, and authorization and approval procedures. The statutory auditors while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit committee of the Board.

Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include financial position of the Company, economic conditions affecting demand / supply, price conditions in the domestic and overseas market in which the Company operates, changes in the government regulations, tax laws and other statutes.