GKB OPHTHALMICS LTD.
At the outset, I am happy to extend a warm welcome to the new members to
GKB fold who have joined as a result of Public Issue of the Company's
shares made in April'96. 1 am confident that new Shareholders will find
their investment in the Company equally rewarding.
Your Company has on the whole continued its satisfactory performance in the
year 1995- 96 with increased sale and higher gross profit. However the net
profit has declined due to heavy interest burden on the Company. We had to
some extent forseen this situation and had projected a lower net profit of
Rs. 117.32 lakhs for 1995-96. We have earned a net profit Rs. 120.00 lakhs
which is an improvement over the projected figures.
With the inflow of new capital, the Company is fully geared up to
complete the expansion plan and to achieve the production during the
current year. We can look forward to greater improvement in liquidity and
profits in the coming years.
The new factory building at Pilerne Industrial Estate is nearing completion
and will be ready for occupation in next 2 months. We shall be moving our
Single Vision plant to the new premises in phases. Approval of Central
Government to move our 100% Export Oriented Unit to Pilerne Industrial
Estate has been obtianed.
Your Company is allowed to sell 25% of its product in the domestic market
as per the Government policy for 100% Export Oriented Unit. Till 1994-95 we
had not availed of this facility and had not entered the domestic market at
all. A small beginning was made in 1995-96 and in a short time your
Company's products have received a very good response from the top
opticians of the country. We propose to increase our share in the domestic
market in the coming years. although out main thrust area would remain the
export. Company is planning to start overseas offices in Europe and Middle
East to strengthen its export base.
The new Government has announced its Economic policy and the same was
reflected in the budget presented in the Parliament by the Finance
Minister. Export continues to be the priority area but some of the
provisions of the budget will adversely affect the export efforts. It is
expected that the Finance Minister will reconsider the issue before the
budget is finally passed.
Our Company is well poised to participate in the process of Economic growth
of our country, l am confident that with the support of our Associates,
Shareholders and most important of our Customers, the future of the Company
K. G. GUPTA