xlo india ltd Management discussions

XLO INDIA LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS 2009-2010 2008-2009 (Rs 000) (Rs. 000) Sales and other Income 3,67,446 2,93,853 Profit/(Loss) before depreciation 9,021 437 Less: Depreciation 1,884 2,617 Profit/(Loss) for the year 7,137 (-) 21,800 OPERATIONS There is a significant improvement over last years performance. The demand during the year under review has experienced an increase, as a result of the ongoing recovery from the depressed conditions of the previous year. The demand for our products has showed improvement and the following remedial action was taken to improve the performance. The company had taken in hand new projects such as:- a) Steering Gear Assemblies for higher Horse Power Tractor. b) Rack and Pinion c) Development of Power Steering for Light Commercial Vehicles. d) Tie-Rods and Ball Joints for light commercial vehicles. These products went on-stream during the current year and we are sure we will increase the turnover this financial year. To improve quality of its products, the Company has implemented various quality systems and have achieved TS 16949-2002 for Automotive Applications, these systems are now required by our customers in the current market scenario as also looking at new markets both in India and overseas. Our training in the UNIDO Programme, Advanced Cluster has enabled us to achieve world class standards. As most of us are aware, the Automobile and Agriculture Industry has witnessed an economic upsurge in the recent past, and the Company perceives an improvement in the market demand based on the various input from customers. We expect a significant growth in the business as compared to the past year, by various product development and/or extension, the Company is prepared to position itself to take advantage of this increased demand.