It gives me immense pleasure to present the 35th Annual Report of theCompany to all of you.
The Revenue from operations of the Company on a Standalone basis for the year 2017-18stood at Rs 13024.04 lakhs as against Rs 13053.35 lakhs in the previous year reflectingstability of operations in an otherwise uncertain market. Profit before tax stood at Rs3505.76 lakhs in 2017-18 as compared to Rs 3192.06 lakhs in the previous year. Netprofit after tax stood at Rs 2490.88 lakhs for the current year as compared to Rs2077.70 lakhs in the previous year. This has been a strong year for your company and wehave managed to clock a decent growth in bottom line.
Your Company has approved a buyback proposal for purchase by the Company of upto444444 shares of Rs 10/- each (representing 1.55% of total paid-up equity capital) fromthe shareholders of the Company on a proportionate basis by way of a tender offer at aprice of Rs 180/- per equity share for an aggregate amount not exceeding Rs 799.99 lakhsin accordance with the provisions of the Companies Act 2013 and the SEBI (Buy-back ofSecurities) Regulations 1998. The buyback was successful and fully subscribed (214%) andwas able to reward minority shareholders in a meanigful manner. The Promoters did notparticipate in the buyback.
Your Company has further invested in product development in the textile industry withthe hope to cater to more customers in the international as well as domestic markets. Thecompany has also invested further in the Finished Products division making an expansionin this area.
During the year 2017-2018 the Government of India took several initiatives to boostIndian Economy. India has registered a healthy growth rate of 7% due to Government'scontinuous efforts to push various financial and agricultural reforms includingtechnological upgradation across all sectors. The biggest economic reform was GST whichenabled the country to move towards 'One Nation One Market and One Tax.' This singleeconomic reform provided a big boost to a largely unorganized textile sector. Your companyhas been able to comply successfully with the new GST regulations and was able to completeimplementation smoothly.
While we applaud the government on this new initiative and see a significant benefitfor the country over the long run it presents challenges to the Export community. TheDrawback structure stands to be revised and input costs have seen an upward revision. Webelieve that various representations to the Government will yield results and allanomalies will get addressed. The company is also going to be moving to a new accountingstandard Ind-AS as per the regulations.
I would like to extend my gratitude to all my fellow board members shareholderscustomers vendors bankers suppliers and employees of the Company for their unstintedsupport. I take this opportunity to thank everyone who has contributed to deliver theperformance in fiscal '2018 and thank them for their belief.
Chairman & Managing Director