KYCR Coil Industries Ltd. - Dhaka Stock Exchange

Management perception
The company has supply of power from PDB for 10 MW, 33 KV HT line for operation of the
factory. Besides, the company has captive power plant having capacity of 2 MW (approx.) which
is used for NOF plant to ensure uninterrupted continuous line production.
8. Working capital management
Due to the long working capital cycle of the steel industry, efficient working capital management
to be an important factor for steel manufacturers. The management of working capital is very
much crucial for the profitability of the Company.
Management perception
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preparing the working capital budgets at regular intervals & also monitoring the actual
movement in the working capital movement against the standards set. In case of any significant
and unexpected variation, the Company takes necessary action after identifying the permanent
and floating working capital separately.
9. Distribution network
Distribution channel in the supply chain is very crucial in terms of marketing of products among
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competitiveness in the marketplace and hence may also affect the profitability in turn.
Management Perception
The Company has more than 800 active/seasonal dealers in different belts across the country.
The Company believes that this network and the cordial relationships that it enjoys with the
dealers/distributors/agents, enables it to market and distribute its steel widely and efficiently all
over the country. Moreover from FY 2005 the Company has started to export CR Coil which
currently comprises about 15% of its total sales quantity.
10. History of non-operation
Since inception , the company did not experience any closure of operation except for the
requirement of maintenance.
11. Implementation of proposed New project
The company proposed to invest its IPO proceeds for implementation of its new facilities to
increase value added products. Any new project carries some inherent risks and may not be
successful or may take long time to secure sustained profitability.
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KYCR started its commercial operation on 01 February 2002 and subsequently increased its
production capacity by smooth implementation of NOF Plant. It is expected that the proposed
expansion can be done smoothly based on experience of the sponsors in establishing project of
this kind.