I have great pleasure in extending to you all a very warm welcome to
the 20th Annual General Meeting of your Company and present before you
the performance of your Company.
I am glad to inform you that during the year under review, performance
of your company was satisfactory. The Board tried hard to give upward
flip to the profitability and turnover and initialed measures to
improve overall performance of the company.
BUSINESS AND INDUSTRIAL ENVIRONMENT
The industrial scenario continues to be positive and sustainable for
growth and development industry. The capital market is very bullish and
The textile industry is likely to do well in coming years due to
lifting of quantitative restrictions and quota barriers. The share,
which the industry plans to envisage capturing in the international
market could be substantial, provided the industry foster growth in
The industry anticipates severe competition from China and other South
Asian countries on removal of quota regime. The modernization of
textile industry, rejuvenation of old textile sick units, speedier and
cheap financial assistance, simplification of procedural formalities
introduction of informa- tion technology in production, processing,
selling and distributions, stricter quality checks are some of the
important measures that the textile industry should promote and
initiate to overcome threats posed by South East Asian countries.
MODERNIZATION & RATIONALIZATION
The technology is changing very fast. Any company, which keeps pace
with the technology, will survive in the business. The new technology
always provides time and energy devices. This will lead to saving in
labour, time and cost of energy consumption. Your company is updating
its machineries every now and then, which enable it to have cutting
edge over its competitors. The cost of production also comes down
PERFORMANCE APPRAISAL Operation
The company has performed satisfactory during the year. The total
income registered during the year was Rs. 2481.01 Lacs as against Rs.
3700.01 Lacs in the previous year. The declination is mainly due to
disposal of plant and machineries of spinning division of the company.
During the year under review your Companys export division-registered
Sales of Rs. 136.20 lacs (Rs. 227.53 lacs) only. Your Company initiated
several export promotion measures to improve exports
The profit before tax was Rs. 100.29 lacs (71.83 lacs). The after tax
profit was Rs.65.17 lacs (63.32 lacs) which was increased comparatively
The Debt: Equity ratio stood at 3.57:1 in the financial year 2006-2007
as against 3.29:1 in the previous year.
Board of directors of the company has approved the amalgamation /merger
of Strips Apparels Limited, a subsidiary company of Pantaloon
Industries Limited, with the company as a part of its expansion plan.
Strips Apparels Limited is manufacturing and trading company in
readymade garments and textiles.
Your Board has recommended a dividend at the rate of 5% p.a. same as
declared and paid in the previous financial year 2005-2006
The earning per share increased from Rs. 2.11 to Rs. 2.17 and the Book
Value per share increased to Rs. 32.63 from Rs. 31.04. The market value
of the companys share was in price range of Rs.10 to Rs. 33.15.
The year in retrospect was satisfactory. The turnover improved
marginally and profitability constrained. I am optimistic to attain
reasonable & sustain- able growth in the current financial year. Your
management is trying hard to adopt best technology available in the
textile and cut down the cost of production drastically.
Your Company has initiated most of the measures prescribed for better
corporate governance will facilitate transparency, accountability and
equity in all facets of its operations and its interaction with its
stakeholders, including shareholders employees and the government. Your
Company is committed to achieving the highest standards of corporate
governance. Your Company believes that all its operations and actions
must serve the underlying goal of enhancing overall shareholder value,
over a sustained period of time.
On behalf of the Board I take this opportunity to convey their sincere
appreciation to all the Companys employees, shareholders, investors,
Bank and Financial institution for their continued co-operation and
For KAMADGIRI SYNTHETICS LIMITED
DATE : 27/06/2007 Pradip Kumar Goenka
PLACE: Mumbai Chairman & Managing Director