KAMADGIRI SYNTHETICS LIMITED
ANNUAL REPORT 2006-2007
I have great pleasure in extending to you all a very warm welcome to the
20th Annual General Meeting of your Company and present before you the
performance of your Company.
I am glad to inform you that during the year under review, performance of
your company was satisfactory. The Board tried hard to give upward flip to
the profitability and turnover and initialed measures to improve overall
performance of the company.
BUSINESS AND INDUSTRIAL ENVIRONMENT:
The industrial scenario continues to be positive and sustainable for growth
and development industry. The capital market is very bullish and strong.
The textile industry is likely to do well in coming years due to lifting of
quantitative restrictions and quota barriers. The share, which the industry
plans to envisage capturing in the international market could be
substantial, provided the industry foster growth in right direction.
The industry anticipates severe competition from China and other South
Asian countries on removal of quota regime. The modernization of textile
industry, rejuvenation of old textile sick units, speedier and cheap
financial assistance, simplification of procedural formalities introduction
of information technology in production, processing, selling and
distributions, stricter quality checks are some of the important measures
that the textile industry should promote and initiate to overcome threats
posed by South East Asian countries.
MODERNIZATION & RATIONALIZATION:
The technology is changing very fast. Any company, which keeps pace with
the technology, will survive in the business. The new technology always
provides time and energy devices. This will lead to saving in labour, time
and cost of energy consumption. Your company is updating its machineries
every now and then, which enable it to have cutting edge over its
competitors. The cost of production also comes down drastically.
The company has performed satisfactory during the year. The total income
registered during the year was Rs. 2481.01 Lacs as against Rs. 3700.01 Lacs
in the previous year. The declination is mainly due to disposal of plant
and machineries of spinning division of the company.
During the year under review your Company's export division-registered
Sales of Rs. 136.20 lacs (Rs. 227.53 lacs) only. Your Company initiated
several export promotion measures to improve exports
The profit before tax was Rs. 100.29 lacs (71.83 lacs). The after tax
profit was Rs.65.17 lacs (63.32 lacs) which was increased comparatively
The Debt: Equity ratio stood at 3.57:1 in the financial year 2006-2007 as
against 3.29:1 in the previous year.
Board of directors of the company has approved the amalgamation /merger of
Strips Apparels Limited, a subsidiary company of Pantaloon Industries
Limited, with the company as a part of its expansion plan. Strips Apparels
Limited is manufacturing and trading company in ready-made garments and
Your Board has recommended a dividend at the rate of 5% p.a. same as
declared and paid in the previous financial year 2005-2006
The earning per share increased from Rs. 2.11 to Rs. 2.17 and the Book
Value per share increased to Rs. 32.63 from Rs. 31.04. The market value of
the company's share was in price range of Rs. 10 to Rs. 33.15.
The year in retrospect was satisfactory. The turnover improved marginally
and profitability constrained. I am optimistic to attain reasonable &
sustainable growth in the current financial year. Your management is trying
hard to adopt best technology available in the textile and cut down the
cost of production drastically.
Your Company has initiated most of the measures prescribed for better
corporate governance will facilitate transparency, accountability and
equity in all facets of its operations and its interaction with its
stakeholders, including shareholders employees and the government. Your
Company is committed to achieving the highest standards of corporate
governance. Your Company believes that all its operations and actions must
serve the underlying goal of enhancing overall shareholder value, over a
sustained period of time.
On behalf of the Board I take this opportunity to convey their sincere
appreciation to all the Company's employees, shareholders, investors, Bank
and Financial institution for their continued co-operation and support.
For KAMADGIRI SYNTHETICS LIMITED
DATE : 27/06/2007 Pradip Kumar Goenka
PLACE: Mumbai Chairman & Managing Director