BSE LiveJan 22, 16:00
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Dear Stake holders,
I feel immense pleasure in presenting this annual report for the financial year 2017-18 of your company and inform you that we have again delivered commendable performances during the year conquering the odds. The company is continuously striving with a consistent quest for providing complete denim solutions by new product development and deep understanding of consumer preferences in the coming years.
The company has improved its financial performance and generated profit of Rs. 702.21 Lakhs covering the loss of corresponding previous year and recorded higher PAT of Rs. 588.36 Lakhs during the year under review. The company has also imported and installed machinery in RB Industries, in which the company is a partner, which has highly assisted in cost of reduction in the manufacturing process. The focus of the Company for the year under review has also been to invest in upgrading its facilities and to add balancing equipment which would result in either increasing throughputs and/or reducing the cost of production.
The company have maintained the highest safety standards and relentlessly strived to improve energy efficiency and minimise operating and maintenance costs. We have ensured adoption of latest developments in technology to improve asset reliability and avoid unplanned outages, thereby enabling high on-stream factor.
The textile and apparel sector is a key contributor to Indian economy and among other textiles sectors the denim segment has always been one of the leading segments in the apparel industry. Its contribution to the country’s GDP and exports is 6% and 13% respectively which has always been praiseworthy. Denim fabric manufacturing is considered a sunrise industry in the entire textile value chain of India. As per Indian Textile Magazine on January 12, 2018- Over the last decade, the Denim industry was registering a 15% CAGR. Currently, the industry has an annual installed capacity of 1.5 billion meters, which is the world’s second largest, after China. Its sales turnover is estimated at Rs. 15,000 crores. The Indian fashion retail market is continuously evolving and is expected to perform at a high Compound Annual Growth Rate (CAGR) of 9.7 per cent to reach US $115.14 billion by 2026. The current domestic consumption of Indian denim fabric is 750800 million meters, growing at an annual rate of 12%.
GST on textile has brought a significant change in the input tax credit system and has created an important balance between organized and unorganized sectors of the industry. In fact, GST has helped the entire textile industry in shifting towards an organized sector. Apparently, the GST has helped in improving the cost-competitiveness as it is levied only at point of sale and not at the point of purchase and manufacturing.
Hence, the consumer will be bearing only the GST charged by the last dealer in the supply chain, thus simultaneously making it cheaper for the customer and increasing the profitability of the business.
The company firmly believes in the philosophy of “Quality First”, giving top priority to the needs of the customers and strives to earn profits through customer satisfaction. Change and adaptability is the key to success in the ever evolving textile and apparel market globally. Innovation always excites us and we continue to experiment with new products, technologies and business models. I am confident that if we are able to adapt to the changing market, the future will be extremely rewarding for all our stakeholders. The company has also voluntarily adopted the IndAs (Indian Accounting Standards) for maintaining financial records of the company so that the stakeholders of the company get the better idea of the functioning of the company.
I would like to take this opportunity to thank my colleagues for their dedication, innovation and hard work. By creating new benchmarks in the business, our team is generating sustainable value for our stakeholders and the nation. I therefore place on record my sincere appreciation to the Board of Directors for their guidance. I would also like to express my gratitude to all our stakeholders, bankers, employees, suppliers, associates and our loyal customers for their continuing support and faith in us. I look forward to an exciting journey ahead, together.
Thank you for your support
Rajkumar Mangilal Borana
Chairman & Managing Director