arihant multi commercial ltd Management discussions

The management discussion and analysis presents the industry Overview, opportunities and Threats, Initiatives by the Company and overall strategy of Arihant Multi Commercial Limited

1. Overview of economy:

Indian economy as compared to previous year is on a recovery mode. Major indicators of growth mainly industrial production, stock market index, domestic consumption and exports are picking up. In many ways, 2017-18 was a defining year for the Indian economy. India completely reset its indirect tax system to a comprehensive ‘One Nation, One Tax - Goods and Service Tax regime. The Indian Economy gained momentum in the previous Financial Year with its Gross Domestic Product (GDP) growth stood at 6.7%. However, inflation at around 5.1%, fiscal deficit at 3.5% of GDP, Trade deficit at US $16.3 billion and Dollar appreciation are major concerns going forward in the current year. The World growth also strengthened in the year 2017-18 to 3.8 percent with a notable rebound in global trade. It was driven by an investment recovery in advanced economies, continued strong growth in emerging Asia and remarkable upswing in emerging Europe. The world economy is expected to strengthen further in 2018 and 2019, with economic growth projected to rise to about 4%. Industry Structure and Development:

During Financial Year 2017-18 exports of Textile and clothing were maintained at USD 35.5 billion. While garment sector accounted for 53% of the exports, Cotton yarn/fabrics/made ups had 24% share with remaining 23% comprising man-made textiles, handicrafts, handmade carpets, etc. According to the report of Labour Bureau, textiles and clothing sector generated maximum employment during 2016, outperforming the IT and auto sectors. As it is, the clothing and textiles industry has 12% share of countrys total exports and employs close to 45 million people. Indias share in the world trade in textiles and clothing was around 5%, as against 37% of China, and 4% each of Italy, Germany and Bangladesh. Among the other major exporters, U.S., Hong Kong, Vietnam and Turkey had a share of 3% each. Technology Upgradation Fund Scheme (TUFS), which was introduced for textile industry from 1st April, 1999, has been further extended up to 31^st March, 2022 with certain changes. A substantial part of spinning capacity was put up under the TUFS during this period and total investments attracted in the entire industry till 30th June, 2017, amounted to around Rs.3.07 lakh crores.

2. Opportunities and threats Opportunities

Though the furnishing fabric market is ever growing one yet it has witnessed a radical change in consumer tastes and liking due to changing life styles in line with changing times. The economic changes and liberalization has played a big role in enhancing the living standards and is also instrumental to a large extent in adding up to general spending power. The boom in housing sector has indeed added spice to peoples tastes and their zest for sophistication. The Company operates in a highly competitive environment but its competence and core experience has helped it in keeping pace with the developments around.

Threats

With the lifting of quota, the competition has increased from China and other towel exporting countries.

3. Financial Performance / Product wise Performance

During the year under review your company had achieved a turnover of Rs. 4.56 Crores against the last year turnover of Rs. 46.88 Crores. Your Company has earned a net profit of Rs. 0.52 Lacs as against a profit of Rs. 5.20 Lacs during the last year. In view of improving financial results and positive outlook of the near future, your directors are hopeful that in current year better financial results would follow.

4. Internal Control Systems and their adequacy

The Company has inn place internal control system. Audit Committee reviews internal audit reports and oversees the internal control system of the Company. The Company has implemented an internal controls and risk management systems for achieving operational efficiency, optimal utilization of resources, credible financial reporting and compliance with local laws. These controls are regularly reviewed by Management for its efficiency and effectiveness.

5. Human Resources

The Company recognizes that its success is deeply embedded in the success of its human capital. Company continued to strengthen its HR processes in line with its objective of creating an inspired workforce.

6. Cautionary Statement

Certain statements under "Management Discussion & Analysis" describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Although the expectations are based on reasonable assumptions, the actual results could materially differ from those expressed or implied, since the Companys operations are influenced by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events.

Registered Office:	By order of the Board
Arihant Multi Commercial	For Arihant Multi Commercial Limited
Shah Arcade 1, Rani Sati Marg
Malad East, Mumbai-400 097.	S/d
	DEEPAK BANSAL
	(Din No: 03578201)
	Chairman & Managing Director
Date: - 29th May, 2018
Place: - Mumbai