It gives me immense pleasure to present the 34h Annual Report of theCompany to all of you.
I am happy to share with you your Company's performance for the year 2016-17. The pastyear presented a challenging business environment with events such as Demonetization inDomestic markets and Britain's exit from the EU. Your Company could withstand thesedisturbances with minimal impact mainly due to its thrust on penetration into newmarkets tightening control on inventory management and exercising stringent cost controlmeasures.
The Revenue from operations of the Company on a Standalone basis for the year 2016-17stood at Rs. 13053.35 lakhs as against Rs. 14673.89 lakhs in the previous yearreflecting stability of operations in an otherwise uncertain market. Profit before taxstood at Rs. 3159.09 lakhs in 2016-17 as compared to Rs. 3693.98 lakhs in the previousyear. Net profit after tax stood at Rs. 2044.73 lakhs for the current year as compared toRs. 2452.86 lakhs in the previous year. Although our performance has not beenencouraging due to a subdued top line we have made certain integral investments which wehope will help the company maintain its position in the industry and move from strength tostrength.
Your Company has declared an Interim Dividend of Rs. 2.00/- per equity share of Rs.10/- each i.e. 20% (Pre Bonus) and Final Dividend ofRs. 0.60/- per equity share ofRs. 10/-each i.e. 6% (Post Bonus) has been recommended on equity shares of the Company. TotalDividend payout is 26%.
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.
This year has started on a challenging note with the government rolling out the Goodsand Services Tax (GST). While we applaud the government on this new initiative and see asignificant benefit for the country over the long run it presents challenges to theExport community. The Drawback structure stands to be revised and input costs have seenan upward revision. We believe that various representations to the Government will yieldresults and all anomalies will get addressed.. The company is also going to be moving to anew accounting standard Ind-AS as per the regulations. Your company has strengthened itsinternal controls due to the new ERP system which will help us get access to thisinformation more easily.
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 '2017 and thank them for their belief.
Chairman & Managing Director