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SAMTEL INDIA LIMITED
ANNUAL REPORT 2007-2008
CHAIRMAN'S REPORT
Dear Shareholders,
business environment continues to present challenges for your Company, but
driven by its resilience, foresight acid is direction, it has continued to
unlock-future growth potential.
The financial year ended on 31st March 2008, your company sold as a part of
its trading operations 1604 color picture valuing Rs. 1724 thousands, as
against 6514 picture tubes valuing Rs. 7854 thousands sold during the
previous - I year.
As reported to the members in the last annual report, the Company had
decided to set up a facility for manufacturing metal for picture tubes for
color television sets at Kota (Rajasthan), to cater to the needs of Samtel
Color Limited. However, to the revision of production plan by SCL for its
Kota factory, there was a delay in setting up of the same. SCL is currently
in the process of evaluating various options/ strategies for procurement of
metal parts.
Your company holds long-term investments in Samtel Color Limited and Samtel
Glass Limited. As the market dynamics turn favourably in our direction, the
Company's investments in group companies are expected to perform better in
the coming years.
The market for colour televisions continues to grow at about 10% per annum.
However, Samtel Color Limited was not able a exploit the positive market
dynamics due to delays in the ramp up of production on the two new lines,
liquidity stress and dumping of color picture tubes by overseas suppliers.
As mentioned in previous year's report, SCL approached the CDR cell RBI for
corporate debt restructuring (CDR) and the proposal has since been
approved. The CDR, coupled with the notification on anti-dumping duty,
should help the company regain its foothold in the market.
The performance of Samtel Glass Limited would also have shown improvements
had it not been adversely affected by the performance of Samtel Color
Limited.
I would like to place on record my sincere thanks to the Board of Directors
of your company for their continued guidance to the management of the
Company and their relentless focus on the highest standards of corporate
governance. Before concluding, I would like to thank all the stakeholders
for their continued support and encouragement.
Yours truly,
Satish K. Kaura
Chairman and Managing Director
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