{tab=Chairman's Report}

CHAIRMAN’S REPORT FOR THE YEAR ENDED 30 JUNE 2012
I hereby submit the report on the performance of the company during the financial year ending 30th June 2012.
CROP
Crop production for the year was higher than last year. 14,625,759 kilogram's of Green Leaf were delivered for processing at the company's factory. Out of this throughput of, 3,432,341 kilogram’s of tea was made. These throughput and output was higher than last year's levels of 13,320,792 kilogram's and 3,322,467 kilogram's by 1,304,967 kilogram's and 109,874 kilogram's respectively. This achievement was at a conversion factor of 23.47% which is equivalent to per 4.26 Kg of Green Leaf to make one kilogram of Made Tea.
TEA PRICES
There was an increase in tea prices during the year. The average price realized per kilogram of made tea sold was Kshs. 290.52. This compares favorably with the price of Ksh. 262.11 in 2012.The prices therefore increased by Kshs. 28.41 per kilogram of sold tea. This year's price of
one kilogram of made tea sold is equivalent to Kshs. 68.19 per kg of green leaf.

MANUFACTURING COST
The manufacturing costs increased during the year. The average manufacturing cost for the year was Ksh. 73.51 for every kilogramme of made tea against the average manufacturing cost of Kshs. 71.16 per kg for last year. There was an increase in the manufacturing cost by Kshs. 2.35
per every kilogram. This manufacturing cost includes monthly green leaf payment at Kshs. 53.42 per kg of made tea for the year which is higher than Kshs. 48.11 per kg for last year. This year's manufacturing cost was equivalent to Ksh.17.25 per kilogram of green Leaf.
GREENLEAF PAYMENT AND DIVIDENDS
The company was able to pay Kshs. 800,289,907 for green leaf delivered against a total payment of Kshs 745,625,103 realized the previous year.
The company managed to pay as advance first payment of Kshs 12 per kg up to March 2012 & Kshs 14 from April to June 2012 for green leaf delivered which is equivalent to Kshs 53.42 per kg of made tea.
The Board of directors further recommended that payment of an interim dividend of 2% be paid as a final dividend to all class 'B" shareholder’s appearing in the Company's share register as at 30th June, 2012. A total sum of Kshs. 1,947,833 is payable to all the shareholders of the company by way of dividends.
GENERAL INFORMATION
The company has continued to face a lot of challenges ranging from an increase in fuel prices, increase in salaries & wages. However the company was also favoured by an increase in tea prices and favourable exchange rates. During the year the company installed 18 withering troughs aimed at increasing the storage capacity of green leaf, to improve the quality of withered leaf & efficiency of leaf collection. The company installed a tea cleaning machine financed by Zensho Group of companies under the fair trade projects. The company has paid for 59 parcels of land for the hydro project & it is expected that ground breaking will occur in early 2013. These short term & long term strategies are aimed at increasing the production efficiency & receivable income of the factory.
VOTE OF THANKS
On behalf of the board of Directors, I wish to hereby express my thanks and appreciation to the staff of the company, shareholders and growers who supplied green Leaf to the company for their good work which has contributed to the success of the company during the year under review.
RIPOTI YA MWENYEKITI YA MWAKA ULIOMALIZIKA 30 JUNI 2012
Ningetaka kuwatolea ripoti kuhusu vile Kampuni ilivyofanya katika mwaka ulioisha tarehe 30 Juni,2012.
MAVUNO YA CHAI
Mavuno ya Chai katika mwaka yalikuwa juu ya yale ya mwaka uliotangulia. Kilo 14,625,759 za majani chai zilipelekwa kutengenezwa katika kiwanda cha Kampuni. Kutokana na kiasi hiki cha chai, kilo 3,432,341 za chai iliyotengenezwa zilipatikana. Kiasi hiki kilikuwa juu ya kile cha mwaka uliotangulia ambacho kilikuwa kilo 13,320,792 za majani mabichi ya chai na kilo 3,322,467 za chai iliyotengenezwa na tofauti ilikuwa kilo 1,304,967 za majani mabichi na kilo 109,874 za chai iliyotengenezwa.Mapato haya kwa kibadilisho cha 23.47 kwa mia ni sawa na kilo 4.26 za majani mabichi ambayo yanatoa kilo moja ya chai iliyotengenezwa.
BEI YA CHAI
Bei ya chai ilipanda katika mwaka. Bei wastani ya chai iliyopatikana kwa kila kilo moja ya chai iliyouzwa ilikuwa Kshs 290.52. Bei hii ilikuwa ya juu ikilinganishwa na bei ya mwaka uliotangulia ya Kshs.262.11. Kwa hivyo Kampuni ilikuwa na tofauti katika hizo bei ya Kshs 28.41 kwa kila kilo
moja ya chai iliyouzwa. Bei ya chai iliyotenge nezwa na kuuzwa katika mwaka ni sawa na Kshs.68.19 kwa kila kilo moja ya majani mabichi.
GHARAMA YA UTENGENEZAJI
Gharama ya utengenezaji ilipanda katika mwaka na ilikuwa Kshs. 73.51 kwa kila kilo moja ya chai iliyotengenezwa. Gharama wastani ya mwaka uliotangulia ilikuwa Kshs.71.16 na kwa hivyo tofauti ikawa Kshs 2.35 kwa wastani kwa kila kilo moja ya chai iliyotengenezwa. Gharama ya utengenezaji imejumuishwa na ile ya malipo ya majani chai kwa mwezi ya kshs 53.42 kwa kila kilo moja ya chai iliyotengenezwa yenye ilikua juu ikilinganishwa na ile ya mwaka uliotangulia ya  kshs 48.11 kwa kila kilo moja ya chai iliyotengenezwa.Gharama ya utengenezaji katika mwaka
ilikuwa sawa na Kshs 17.25 kwa kila kilo moja ya majani mabichi.
MALIPO YA MAJANI CHAI NA MGAO
Kampuni iliweza kulipa malipo kwa wakulima ya Kshs. 800,289,907 kwa majani chai iliyopokewa kiwandani ikilinganishwa na yale ya mwaka uliopita ya shilingi 745,625,103. Kampuni iliweza kulipa malipo ya kwanza kwa Kshs 12 hadi mwezi wa marchi 2012 na Kshs 14 kutoka mwezi wa Aprili hadi Juni 2012. Haya malipo ni sawa na Kshs 53.42 kwa kila kilo moja ya chai iliyotengenezwa. Baraza wakurugenzi walipendekeza malipo ya mgao wa asilimia mbili kwa wanahisa wote wa hisa za "B" waliokuwa katika kitabu cha wanahisa wa kampumi mnamo tarehe 30 Juni 2012.
Kwa jumla shilingi 1,947,833 zitalipwa kama mgao.
MAMBO YA DHARURA.
Biashara ya majani chai imekumbwa na changamoto kutokana na ongezeko ya gharama ya utengenezaji, malipo ya nishati, na pia malipo ya wafanyikazi. Lakini kampuni ilinufaika kutoka kuimarika kwa bei ya chai na kuimarika kwa ubadilishanaji wa ishara za kigeni. Kwa hivyo nina furaha kuwajulisha kwamba katika mwaka kampuni iliweka juhudi madhubuti na kuweka minanda kumi na minane ya kuweka majani mabichi. Minanda hii inatarajiwa itaimarisha uchukuzi wa majani mabichi na kuongeza ubora wa chai iliotengenezwa. Kampuni ilinununua mtambo wa kusafisha chai ulio thaminiwa na kampuni ya zensho kupitia fairtrade. Kampuni imelipa mashamba hamsini na tisa ya mradi wa mtambo wa sitima wa Thuci. Inatarajiwa kazi itaanza mwanzo wa mwaka wa 2013. Mambo haya ya dharura inatarajiwa itakinga kampuni kutoka ongezeko ya gharama na kuongeza ufanisi wa utenda kazi.
SHUKRANI:
Kwa niaba ya Baraza la Wakurugenzi, ningetaka kuwatolea shukrani wafanyi kazi wote wa Kampuni, wanahisa na wakulima wote waliopeleka majani mabichi ya chai katika Kampuni kwa kazi yao iliyowezesha Kampuni kufanikiwa katika mwaka tunaoufikiria.
JOSHUA M KANAKE (MWENYEKITI)

{tab=Directors}

Rukuriri Directors

{tab=Financials}

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