MODERN TERRY TOWELS LIMITED
ANNUAL REPORT 2006-2007
MANAGEMENT DISCUSSION AND ANALYSIS
During the year tinder review, the gross turnover was Rs.82 crores as
compared to Rs.74 crores in the previous year. The company has suffered a
gross loss of Rs.7.45 crores as against Rs.6.69 crores in the last year.
The oversupply situation, stiff competition from Pakistan, Turkey and China
and reduction in export benefits by the Govt. have adversely affected the
margins of the Company.
The opportunities which were expected out of dismantling of quota regime
have not yet been fully realized. The weak dollar has further adversely
affected the margins. However, the Company continued its concentration or
value added towels and in development of new products.
Your directors are unable to declare any dividend during the year under
review due to inadequacy of profits.
EXPORTS & FUTURE PROSPECTS:
The Company could grow its exports by about 6% over previous year and
achieved the exports of Rs.65 crores as against Rs.61 crores in previous
year despite depressed market conditions and severe competition in
international market. Margins in export could not be sustained due to price
pressure. The long term outlook appears promising and export performance is
likely to be improved in future. The products of the Company continue to
enjoy a strong product image worldwide.
INDUSTRIAL RELATIONS & PARTICULARS OF EMPLOYEES:
Your Directors sincerely appreciate the workers, staff and officers for
putting their best efforts. The Company has enjoyed healthy & cordial
relations throughout the year. There is no employee getting remuneration
prescribed Under Section 217 (2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 as amended.