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ANNUAL REPORT – 2010 - 11

Operations: During the year under review, the total Income of your Company was `868.44 crores against `669.02 Crores in the previous year, registering a growth of 29.81%. The net profit after tax was at `57.64 crores against `33.72 crores in the previous year, registering a growth of 70.94%. The increase was due to all round growth in all the business verticals of your Company-Fabrics, Yarn, Dyeing, Readymade Garments and Furnishing. Improved capacity utilization and operating efficiency enabled your Company to post better results despite of surging raw material prices and inflation rising to dizzy heights. Expansion: Your Company plans to increase the production capacity of fabrics & readymade garment divisions by 20 lakh meters and 75000 pieces per month respectively. The envisaged capital expenditure towards plant and machinery is around `150 crores. This will be financed by way of Term Loan (under the TUF Scheme of Government of India) and internal accruals of the Company and same will be incurred in a phased manner in the next 2 to 3 years. Dividend: Your Directors are pleased to recommend a Dividend of `7/- per Equity Share (70%) for the year 201011, with a total payout of `7.62 crores including Tax on Dividend.

however. But this growth happened on the backdrop of increasing inflationary pressures. uncertainty about pace of global recovery. . grew at much higher pace. in contrast. Sustained growth story of the Indian economy promises to augur well for the businesses in general. Strong and buoyant demand. put forth a rather mixed scenario. strength of its well-positioned brands. increasing purchasing power in the hands of younger population and overall structural and inclusive growth on the macro-economic front acted as external impetus’ contributing to this growth. It’s strong presence in the domestic market. well-established brands and resilient distribution network. your Company. limited private spending. Its strong expertise in core areas. wider and deeper penetration in the growing markets in tier II and tier III cities are the strengths which are expected to enable your Company to continue to move ahead on its growth trajectory. Innovative offerings and efforts to leverage its strong distribution network were the internal factors that enabled your Company to remain on the forefront in the dynamic fashion industry. Your Company is well-poised to explore opportunities which may arise due to all-round growth. is well-placed to mitigate the risks. But rising inflationary pressures. For developed economies. expects good growth in the ensuing year. weak global recovery. therefore. Economic front. dependence on the fiscal and monetary stimuli and weaker rate of recoveries persisted throughout the year. tighter fiscal and monetary policies and possibility of slower growth rate of Indian economy are the key concerns on the macroeconomic fronts which may have an impact on your Company’s operations in the ensuing year. requiring Central Bank and policy makers juggle between tightening monetary policies and taking measures to support growth. Developing economies like India. Sales grew 30% on year-onyear basis. however. volatility in raw material prices. On the strengths of these.Management Discussion and Analysis: The year under review presented a strong growth story for your Company. continued application of state-of-art technology. are expected to stand tests of time. Your Company.

On one hand rising inflation and rising cost of living resulted in lowered demand while on the other hand to check rising inflation regularly authorities tightened liquidity which .69 %. registering a growth of 6.ANNUAL REPORT – 2011 . Your Company has been able to register growth in its turnover against a back drop of falling demand and difficult market conditions.12 Operations: During the year under review. volatility in raw material prices. Dividend: Your Directors are pleased to recommend a Dividend of `7. During the year your Company has installed 23 looms along with preparatory machines. the total Income of your Company was `92655 Lacs against `86844 Lacs in the previous year. The total expenditure incurred was `5208 Lacs which was financed by way of Term Loan under the TUF Scheme and internal accruals.50 per Equity Share (75%) for the year 201112. Rising cost of raw material and interest rates put pressure on the profitability. weak growth in several big emerging economies. with a total payout of `816. The net profit after tax was `5541 Lacs against `5764 Lacs in the previous year.93 Lacs including Tax on Dividend. continuing inflation and credit crisis within the domestic market collectively played havoc with the Indian Textile Industry. Expansion: Your Company’s expansion project is progressing as envisaged. Management Discussion and Analysis: Current Year Review During the year under review.

gives us a glimpse of hope for a moderate growth in 2012-13. with the expectation of good monsoon. On the Domestic front. electricity and coal is on the anvil and high interest rates are collectively expected to create a difficult business atomsphere.increased interest cost this coupled with increase in other operating cost reduced margins. the Factors that contributed to the gloom during the year under review does not seem to have withered away thus casting uncertainity for the year ahead. your Company expects to continue its good performance in the ensuing year. improvement in micro economic factors. growing middle class and young population and continued urbanization. Future Outlook On the Global Economic front. however there was a pressure on the profitability. stabilization of prices of raw material at acceptable levels. expected upward revision of price of fuel items. . Your Company being a major domestic player. with its wellestablished brands. dynamic marketing strategies and introduction of quality products. As for the Indian Textile Industry. In spite of this your Company was able to achive marginal growth. as inflation is unlikely to moderate substantially. resilient distribution network.