Compact Disc India to grant interest free loan to shareholders

Mumbai: Compact Disc India will be creating a Share Holders Welfare Fund with an initial capital of Rs 5 million (Rs 50 lakhs) to grant interest free loan to members of the company who have been continuously holding the company’s shares at least for the past 10 years. The loan aims to meet the members’ personal, medical and educational needs.

The company has also decided to declare a 10 per cent dividend for all their shareholders for the financial year 2007-08.

Compact Disc India Ltd. chairman Suresh Kumar said, "At CDI, FY 2007-08 has been a year of accelerated growth and market leadership, and we are fast emerging as Asia’s undisputed leader in the animation film industry. The confidence of the esteemed shareholders in our company has given us a chance to achieve a remarkable position in the industry."

He added, "The creation of shareholder’s Welfare Fund would give us a chance to meet the personal, medical and educational needs of the members of the company who have been the company’s shareholders since last 10 years. We continue to win the confidence of our prominent customers resulting in opportunities of significant size and criticality, thus resulting in higher growth of key international accounts and strengthening our leadership position in the industry."

Compact Disc India reported a 109 percent growth in its net profit for the first quarter ended 30 June, 2008. The company recorded a net profit of Rs 8.35 crores for the quarter as against Rs 3.98 crores in the corresponding quarter last year. Total income stood at Rs 43.36 crores, as compared with Rs 20.22 crores in the comparable quarter a year ago, reflecting a growth of 114 percent. The company’s Earnings Per share (EPS) increased to Rs 8.73.