VTC INDUSTRIES LIMITED
I extend to you all a very hearty welcome to the Twenty-sixth Annual
General Meeting of the Company. The audited statement of accounts and the
Directors Report for the year ended 31st March 1996 have already been with
you and with your kind permission I take them as read.
As per the information available, the export of cotton textiles, fabrics,
yarn and made-ups, during 1995-96 had touched Rs. 8,898 crores surpassing
the target of Rs. 6,720 crores. It is reported that the Union textile
ministry has set a target of Rs. 10,850 crore for the current year. In line
with this trend, your company s exports have also been increased from Rs
.967.90 lacs to Rs.1812.07 lacs and registered an impressive growth. The
profit before tax and after depreciation has increased from Rs. 189.68 lacs
to Rs. 296.68 lacs. As you are aware, your Directors in order to plough
back the internal accruals into the expansion of the project, have
prudently recommended a Dividend of 15% on Equity Shares. The payment of
dividend, if approved by you at today s meeting will absorb Rs. 68.25 lacs.
The Reserves and Surplus of your company has gone up from Rs. 141.71 lacs
to Rs. 370.15 lacs thus creating a sound and healthy financial position.
Your Company s equity capital stands at Rs. 455 lacs as in the previous
The operations of the Company have been well established both in terms of
quality and quantity. Your company's products have been well accepted in
the international market and the continuous export orders received from the
foreign buyers is not less than a testimony to the quality of the product,
your company produces.
In the last 4 months, l am happy to inform you that we have produced 19.45
lac sq. mtrs. as against 16.05 lac sq. mtrs. for the corresponding period
thus showing a rise of 21.19% over the last years production figure. The
regular on going interaction at all working levels has significantly
improved the productivity of your company.
Last year you had been informed of the expansion. The Company has gone in
for backward integration and also the additional weaving capacity. The
project work is progressing well. The civil works on the main factory
building have been completed and the ancillary are in good progress. All
the Open-End Spinning machinery, and Sulzer Weaving machines have already
reached the site and the other infrastructural are also moving one after
With the expansion nearing completion, your Company will derive the
benefits of increased Exports and profitability from this expansion during
the current financial year.
RIGHTS ISSUE :
To part finance the expansion project, your company is shortly coming out
with the Rights Issue of 45,50,000, 18% fully Convertible Debentures of Rs.
42/- each for cash at par, aggregating to Rs. 1911 Lacs.
Before I conclude, I on behalf of the Board of Directors and on my own
behalf thank all the shareholders, IDBI, SBI for their continued co-
operation and support. I also wish to record my appreciation and thanks for
the wise counsel and guidance of my colleagues on the Board.
Last but not the least, I acknowledge with warm appreciation the active
contribution and dedication of the Company s personnel at all levels.
I thank you and look forward to your continued support, trust and
confidence in our endeavours.
Place : Mumbai,
Dated : 27th September, 1996.