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32 million and Rs. 34 million. In these years, despite the corporate tax

commitments amounting to Rs. 5.08 million and Rs. 5.35 million respectivelyunder the newly introduced minimum tax provisions vide ection !!5 o" the

Income #ax $ct, !%&! 'ee (xhi)it 5 "or details*, the a"ter tax income rose,

sharply to post an earning o" a)out Rs. !0 per share. #his helped the

directors to step up dividend to Rs. 2.00 per share "or !%8&+8 and "urther to

Rs. 2.50 "or the year "ollowing. #he high retention-s o" 5 to 80 o"

earnings helped in the )uild up o" net worth )y a)out three times in as many

years. /ith the expand capacity )ecoming "ully operational, the coming

years should see parte-s volumes rising to 2&000 1 30000 #$.

#he healthy cash generation ena)led the ompany to commence repaymento" the institutional loans as per schedule and part1nance the expansion

programme without recourse to any "resh share issue. espite additional

term )orrowings o" a)out Rs. 50 million "or the expansion, parte-s

)orrowings to e6uity ratio stood at !.30 to ! as o" 7une 30, !%88 against 2.35

to ! three years )e"ore. /oring capital )an )orrowings amounted to a)out

Rs. !2 million, a)out 28 per cent o" the net woring capital, as o" 7une !%88.

ummaried nancial statements are given in (xhi)its 5 to &.

Share Price Movements9 parte-s share which was 6uoting around Rs. !

during :cto)er1;ovem)er !%85, touched a pea o" Rs. !!8 during $ugust

!%8 )e"ore retreating to a low o" Rs. 58 in $pril !%88. #he share price has

since moved up to Rs. 801 Rs. !00 range. #he high lows o" the share price

are given in (xhi)it .

Industry and Competition

#he industry-s attractiveness attested )y parte-s success and the a)sence

any maut

the imminent increase in production o" parte1lie tiles "rom the spate o"

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competitors already committed to investments could change the maret

rules drastically. It was this scenario that loomed large )e"ore ?rishna rasad

when he considered parte-s growth alternatives.

#he ma

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could )e )roadly grouped into two. :ne1the ched group1consisted o"

incum)ents in ceramic+)uilding materials1related industries appearing into

the "act ring technology )ased tiles. #he emerging group1were made up o"

totally values promoted with the role ralson o" ceramic tiles manu"acture.

#he esta)lished names included so many ilingtons Btd. and FR 7ohnson

'India* Btd., while some o" the new entrants were Regency eramics Btd.,

Eurdeshwar eramics Btd., ?aell eramics Btd and the

Bie.