The business environment continues to present challenges for your
Company, but driven by its resilience, foresight and strategic
direction, it has continued to unlock future growth potential.
During the financial year ended on 31st March 2008, your company sold
as a part of its trading operations 1604 color picture tubes valuing
Rs. 1724 thousands, as against 6514 picture tubes valuing Rs. 7854
thousands sold during the previous financial year.
As reported to the members in the last annual report, the Company had
decided to set up a facility for manufacturing metal parts for picture
tubes for color television sets at Kota (Rajasthan), to cater to the
heeds of Samtel Color Limited. However, owing 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 Companys 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 to 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 years report, SCL
approached the CDR cell of 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
Satish K. Kaura
Chairman and Managing Director