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Shiva Texyarn Ltd.

BSE: 511108 Sector: Industrials
NSE: SHIVTEX ISIN Code: INE705C01012
BSE LIVE 15:40 | 22 Sep 369.60 -9.15
(-2.42%)
OPEN

376.50

HIGH

385.00

LOW

365.15

NSE 15:31 | 22 Sep 368.70 -10.30
(-2.72%)
OPEN

375.00

HIGH

384.90

LOW

365.05

OPEN 376.50
PREVIOUS CLOSE 378.75
VOLUME 3746
52-Week high 410.00
52-Week low 162.15
P/E 38.46
Mkt Cap.(Rs cr) 798
Buy Price 0.00
Buy Qty 0.00
Sell Price 369.60
Sell Qty 50.00
OPEN 376.50
CLOSE 378.75
VOLUME 3746
52-Week high 410.00
52-Week low 162.15
P/E 38.46
Mkt Cap.(Rs cr) 798
Buy Price 0.00
Buy Qty 0.00
Sell Price 369.60
Sell Qty 50.00

Shiva Texyarn Ltd. (SHIVTEX) - Chairman Speech

Company chairman speech

1997 ANNAMALLAI FINANCE LIMITED. CHAIRMAN'S STATEMENT I have great pleasure in welcoming you all to the Seventeenth Annual General Meeting of the Company. The Directors' Report and the Audited Accounts for the year ended 31st March 1997 have been with you for quite some time and with your permission I shall take them as read. PERFORMANCE IN 1996-97 I am glad to inform you that the performance of your Company has been good during the year 1996-97. The Company's share capital is Rs.1125.24 lakhs. Together with the reserves of Rs.2961.03 lakhs as on 31.3.97. we have a very strong Net Owned Funds base of Rs 4086.27 lakhs. The Gross value of leased assets including assets under operational lease has risen to Rs.6829.80 lakhs from Rs.6278.60 lakhs and stock on hire has risen to Rs.7447.44 lakhs from Rs.6813.54 lakhs. The turnover achieved in discounting of Trade bills amounted to Rs.l131.31 lakhs. The public deposits with the company is Rs.7719.38 lakhs as at 31.3.97 as against Rs.6464.92 lakhs as at 31.3.96 thereby showing a growth of 19.40% which is very satisfactory taking into consideration the tight-monetary conditions and unhealthy competition from unincorporated financial entities. Gross income for the year under review is Rs.4158.86 lakhs as compared to Rs 3363.79 lakhs in the previous financial year, there by showing a growth of 23.64% Profit after tax of the company is of Rs.440.13 lakhs as compared to Rs. 540.13 lakhs in the previous year. The sum set aside for depreciation and lease equalisation charge totals to Rs.775.25 lakhs. Your company continues to follow the prudential norms prescribed by the Reserve Bank of lndia for NBFCs. The Capital Adequacy Ratio of your Company as on 31.3.97 was at a comfortable level of 27.45%, well above the minimum prescribed 8%. Taking into consideration the difficult market conditions experienced during the year, your Directors consider the overall performance to be good. Your Directors have recommended payment of tax free dividend of 27% on the equity capital which will account for Rs.303.81 lakhs. (Previous year Rs.303.81 lakhs). The Company continues to maintain Credit Rating by CRISIL of "FAA-" indicating High Safety. SUBSIDIARIES Cream Investment & Trading Company Ltd. has earned a net profit of Rs.10.08 lakhs after paying interest of Rs.41.23 Lakhs to the holding Company. The performance may be considered satisfactory as the stock market remained subdued during the major part of the year. After the passing of Union Budget of 1997 the stock markets are looking up and the outlook for the current year is better. Annamallai Properties Ltd. has earned a netprofit of Rs.4.52 lakhs. The performance may be considered satisfactory as the real estate market remained sluggish throughout the year. The marketing of residential complex commenced during the year and the subsidiary has started generating income. ECONOMY Our Country is celebrating the Golden Jubilee of Independence this year. We can all feel proud of India's achievements thus far. Fifty years after independence is a good time to set goals for the future. India is now in the midst of transition -we have moved from an isolated slow growing economy to one that is growing faster and beginning to integrate with the global economy. The transition began with liberalisation, but it remains incomplete. Liberalisation has benefited only a fraction of India the organised economy and urban Indians. Growth of GDP is admittedly the only way to measure progress. The Eighth Plan is likely to end with an average growth of 6.5% per annum higher than the 6% achieved in the Seventh Plan. Our economic growth during 1996-97 is estimated to be around 6.8% and may be sustained at around the same level next year. The current growth rate needs to be consolidated stabilised and translated into a trend rate of growth for our economy to forge ahead. What our Country really needs, and must strive for is a growth rate of 8 to 8.5% per annum for the next 15 to 20 years in order to significantly reduce poverty. BUDGET PROPOSAlS The Finance Minister is to be complimented for the bold initiative taken to restructure the tax regime which will put the Country seriously on the path of economic regeneration and poverty alleviation. The Central Budget enthused the people and gave a strong reminder that we are still on the path of the reforms. The tax rates for both corporates and individuals are reduced, tax incentives are offered to enhance investments especially in the infrastructure sector. Besides tax on dividends are abolished at the hands of the shareholders and dividend tax of 10% is levied in the hands of the Corporates, which is a welcome measure. THE ROLE AND REGULATION OF NBFCs In July 1996 the RBI announced major relaxations to registered NBFCs which meet the prudential norms and credit rating requirements. For hire purchase/leasing companies ceiling on both interest rates and quantum of deposits were removed and liquid asset requirements were lowered. The Reserve Bank of India Act, 1934 was amended to take effect from January 1997. These amendments are comprehensive and far reaching. I am happy to inform you that your company has complied with all the requirements prescribed by the Act and also applied for renewal of registration before 8.7.97 with RBI as required by them. The RBI recently announced an increase in the percentage of liquid assets to be maintained by NBFCs from 10% to 15% in two phases before 31.3.1998. These measures will enhance the protection available to depositors and ensure healthy functioning of NBFCs. FUTURE PROSPECTS The policies of the new Government at the Center are also aimed at promoting industrial growth and infrastructure development. Hence the transport sector is also likely to improve their performance with normalcy restored in operation of commercial vehicles which was recently affected by nationwide strike. With further growth envisaged in mobilising deposits, your company is likely to deploy larger volume of funds in its principal line of business. Your company is also constantly reviewing and restructuring its interest rates on Deposit Schemes. With downward revision in interest rates, from 1st July, 1997, the company will be able to deploy funds at competitive rates and thereby generate further growth in its principal business of Hire Purchase and Lease. Hence, your company is optimistic of good performance in the year ahead. ACKNOWLEDGMENT On behalf of the Board of Directors and on my behalf, I take this opportunity to convey our sincere thanks to all our Customers, Depositors, Bankers, Financial Institutions and Shareholders for their constructive support and co-operation. I also wish to place on record my sincere appreciation for the services rendered by all the employees of the company. Thank you. S V BALASUBRAMANIAM CHAIRMAN