kailas rubber company ltd Management discussions

THE KAILAS RUBBER COMPANY LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS Performance The total rubber production registered a 33% decrease when compared to the previous year . The production for the year under review was 2.50 lakhs Kgs while that of the previous year was 3.74 Lakhs kgs .This Shortfall was mainly occasioned by the strike in the Paalali estate as well as reduction in the area under tapping due to more areas being taken up for replanting . However there was a 12% increase in the turnover which rose from Rs 4.88 crores to Rs 5.48 crores during the current year . This was due to increase of almost 70% in the net sales realisation for the year which was Rs 183.47 per kg as compared to Rs 108.27 for the previous year . Apart from this the income from slaughter tapping rose by 142% during the current year to Rs 63 Lakhs compared to the previous years figure of Rs 26 Lakhs . There was a 27 % increase in the profit before tax from Rs 1.9 crores in the previous year to Rs 2.36 crores during the current year The summarised results of the Company are given below: 2010-11 2009-10 Rs. Rs. Sales & Other Income 5,47,72,606 4,87,88,403 Profit before taxation 2,36,02,827 1,86,55,758 Fringe Benefit Tax - - Provision for taxation (1,00,000) (2,00,000) Profit after taxation 2,35,02,827 1,84,55,758 NON RECURRING AND EXCEPTIONAL ITEMS Excess Income Tax Provision Now Written Back - 5,40,278 Capital profit on sale of rubber trees 56,92,804 35,65,335 Reversal of prior year provision since no more - 11,65,203 2,91,95,631 2,37,26,574 Profit and loss account balance at April 1, 2010 9,18,64,121 7,41,37,647 Amount available for appropriations 12,10,59,752 9,78,64,221 Appropriation Transfer to General Reserve (23,60,000) (18,50,000) Proposed equity dividend (39,17,100) (39,17,100) Corporate income tax on equity dividend (Short Provision) (4,32,712) - Corporate income tax on proposed equity dividend (6,65,712) (2,33,000) PROFIT AND LOSS ACCOUNT BALANCE AT MARCH 31, 2011 11,36,84,228 9,18,64,121 Future prospects The Company expects the rubber price to increase steadily during the year due to increase in demand in both the internal & international markets . The Company replanted 15.09 hectares in Kutikul estate during the year under review and is planning to replant 31.39 hectares in Kutikul estate and 6.76 hectares in Paalali estate during the coming year