centron industrial alliance ltd Management discussions

• Industry structure and Developments

The Indian textile industry is probably one of the largest producers of textiles and garments in the world marked by growing modernisation. This sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP) and 10% to the countrys export earnings and is the largest industrial employer (about 45 million people directly). The textiles sector is the second largest provider of employment after agriculture.

• Opportunities and Threats

Opportunities

- Robust retail boom; favourable consumer demo graphics; rising disposable incomes; - increasing consumption; growing preference for readymade garments

- Significant 6-8 percent annual growth rate of Indias textiles industry.

- Availability of greater investment and FDI opportunities

- Global production base gradually shifting from China to India and other low-cost destinations.

Threats

- Largely competitive market.

- Relatively large market segment still unorganised.

- Increasing fuel costs.

- In view of the rising input costs including those of raw materials, it will be dif cult to compete and those countries, where manufacturing costs can be controlled with the support of their Governments, would be better placed.

• Outlook

The Parliament took a decisive step towards a possible roll out of goods and Services Tax (GST)on July 01, 2017 by passing the four related legislations on GST. The state governments will have to pass the GST law in their respective state assemblies. GST will be a single levy to replace multiple central and state taxes to make the country a seamless national market and is expected to boost Indias growth rate.

In spite of the current stressful situation outlined above, the demand for cotton textiles in the long run should remain strong in India and abroad. Our continued efforts to maintain quality and scouting for new and better markets should promote growth and we hope to achieve a better performance in the near future.

• Risks and concerns

The regular availability of cloth at reasonable prices particularly in view of increasing global demand for cloth may prove an obstacle in continuing uninterrupted manufacturing operations. Coupled with this, the availability of skilled labour in States where the textile industry is located has become dif cult. The strength of migrating textile workers from different States has reduced resulting in this acute shortage, which is a matter of concern. Moreover, the increased incentives being provided by our competitors like China, Pakistan, Bangladesh, Vietnam etc. are enabling the manufacturers and seller in those countries to get ahead of us in the various export markets.

• Internal control systems and their adequacy

The Company has a proper internal control system, which provides adequate safeguards and effective monitoring of the transactions and ensures that all assets are safeguarded and protected against loss from unauthorized use or disposition. Moreover, the audit committee of the Company regularly reviews the audit plans, adequacy of internal control as well as compliance of accounting standards.

Also the Whole Time Director has the responsibility for establishing and maintaining internal controls for financial reporting and that they also have the overall responsibility to evaluate the effectiveness of internal control systems of the company pertaining to financial reporting and they have to disclose to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify the de ciencies.

• Discussion on financial performance with respect to operational performance.

• Discussion on financial performance with respect to operational performance.

		(Rs. in Lacs)
Particulars	Year ended 31st March 2022	Year ended 31st March 2021
Revenue from operation	1277.65	3363.74
Pro t/(Loss) before providing Depreciation and Interest	19.82	12.09
Less: Depreciation	-	-
Interest	-	-
Pro t/(Loss) Before Exceptional & Extraordinary Items	19.82	12.09
Less: Exceptional Items	-	-
Pro t/(Loss) Before Taxation	19.82	12.09
Less: Provision for Current Taxation	3.10	1.89
Deferred Tax Liability	-	-
Adjustment of tax relating to earlier periods	-	(2.61)
Pro t /Loss after Taxation	16.72	7.59

• Human Resource Development / Industrial Relations:

The total no. of employees as on 31.03.2022 was 11. The Company has adopted a progressive policy for helping employees to develop their organizational skills, knowledge and abilities to achieve ef ciency.

The focus of all aspects of Human Resource Development is on developing a superior workforce so that the organization and individual employee can accomplish their work goals of service to customers..

• Cautionary Statement

Statements in this report on Management Discussion and Analysis, describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking, considering the applicable laws and regulations. These statements are based on certain assumptions and expectation of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand-supply conditions, finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations and tax structure, economic developments within India and the countries with which the Company has business contacts.