Coonoor Tea Est Management Discussions


THE COONOOR TEA ESTATES COMPANY LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS Operations and Performance: The Company registered a Profit Before Tax of Rs.43.86 lakhs against Rs.112.87 lakhs in the previous year. This is excluding interest provision written back and credited to Capital Reserve of Rs.30.87 lakhs pertaining to the period prior to 1986 consequent to the one time settlement reached. The company produced 18.54 lakhs kg of Black Tea (Orthodox variety) including 8.58 lakhs kg. out of bought leaf. The trust on Exports condinue. During the year the company exported 11.42 lakh kg of Tea valued at 816.43 lakhs including indirect exports of 3.95 lakh kg at a value of Rs.315.85 lakhs. This is higher by 9% in quantity and 3% in terms of value over the previous year. Tea prices of South Indian auction average for the year 2005 was Rs.42.89 per kg against the previous years average price of Rs.47.01 per kg resulting in a reduction of approximately 9%. In comparison your companys Tea Sales average for the year was Rs.64 per kg against Rs.66.97 per kg. for the previous year resulting in a reduction of 3%. South Indian Tea market continues to be depressed and barring unforeseen circumstances the Directors hope to achieve a reasonable performance in the current year.