BSL LIMITED ANNUAL REPORT 2006-2007 CHAIRMAN'S REPORT Dear Shareholders, The year 2006-07 was again a challenging year for domestic & exports markets. There has been a paradigm shift in the domestic textile market and new contours are emerging. The advent of mall culture has shifted the preference of the middle and affluent consumer from fabric to ready-to-wear garments. This inclination of the urban consumer has resulted in the loss of branded fabric over unorganized sector's fabric. Lack of time and a rapidly developing taste for the international brands or label has suppressed the importance of fabric quality. In the Institutional market however, things remain difficult. The BSL Limited has been focusing on emerging markets of Indo-China, Middle-East and Latin America, where traditional systems are still thriving. Your Company in the year 2006-07 for the first time crossed Rs.100 crore export mark, and anticipates growth in these and other developing countries. Innovative designs and products are becoming essential to meet consumers' ever evolving demands and choices. The Company therefore has set up a state-of-the-art Technology Design Centre. The diversification program of Silk weaving is near completion and commercial production will start from July, 2007. It will have value added niche products. The expansion of spinning has been completed and this will enable the just- in-time delivery for exports. Looking at the above measures taken by the Company, it is expected that Company will better in the coming period. A.K. Churiwal Chairman & Managing Director