Cautionary Statement:
Statements in this report on Management Discussion and Analysis describing the
Companys objectives, projections, estimates, expectations or predictions may be
“forward-looking statements” within the meaning of applicable securities laws
and regulations. Actual results could differ materially from those expressed or implied.
Industry structure and developments:
During the period under the review, the Company had been operating in Textile
activities i.e. cloth processing. The textile sector has always been an important part of
peoples lives in India. The textile industry in India is one of the oldest manufacturing
sectors in the country and is currently its largest. Textile machinery and accessories
have been identified as core sectors under Make in India campaign The government has been
pushing for indigenous production through Make in India campaign to bring down imports.
India is the worlds second-largest exporter of textiles and apparels, with a massive
raw material and manufacturing base. The textile industry is a significant contributor to
the economy, both in terms of its domestic share and exports. The Indian textiles industry
is extremely varied, with the hand-spun and handwoven textiles sectors at one end of the
spectrum, while the capital-intensive sophisticated mills sector at the other end of the
spectrum. The decentralized power looms/ hosiery and knitting sector form the largest
component of the textiles sector. The Indian textile industry has the capacity to produce
a wide variety of products suitable to different market segments, both within India and
across the world. Industry faces a nonlevel playing field in many markets due to tariff
barriers, however industry needs to improve its productivity levels, economies of scale
and organize itself better for large production at competitive prices.
Segment-wise or product-wise performance:
The primary business of our company is manufacturing of non-woven fabric products.
The Companys main business activity is textile and its related activities which fall
under single reportable segment i.e. Textiles. The Company has majorly focused on
quality and production.
Nonwoven fabric is a fabric-like material made from long fibres, bonded together by
chemical, mechanical, heat or solvent treatment. The term is used in the textile
manufacturing industry to denote fabrics, such as felt, which are neither woven nor
knitted. Nonwoven materials typically lack strength unless densified or reinforced by a
backing. In recent years, nonwovens have become an alternative to polyurthane foam.
Nonwoven fabrics are engineered fabrics that may be a have a limited life, single-use
fabric or a very durable fabric. Nonwoven fabrics provide specific functions such as
absorbency, liquid repellence, resilience, stretch, softness, strength, flame retardancy,
wash ability, cushioning, thermal insulation, acoustic insulation, filtration, use as a
bacterial barrier and sterility. These properties are often combined to create fabrics
suited for specific jobs, while achieving a good balance between product use-life and
cost. They can mimic the appearance, texture and strength of a woven fabric and can be as
bulky as the thickest paddings. In combination with other materials, they provide a
spectrum of products with diverse properties, and are used alone or as components of
apparel, home furnishings, health care, engineering, industrial and consumer goods.
A large number of fibers are available In the market, but the Nonwovens market is
mainly dominated by three fibers, namely polyolefins, polyester, and rayon. These three
fiber types make up a substantial part of the 2021-22 overall Nonwovens markets for
fibers.
Nonwovens find numerous applications ranging from baby diapers to industrial
high-performance textiles. Some of the important areas where nonwovens are treated as
primary alternative for traditional textiles as Geotextiles, materials for building,
thermal and sound insulating materials, hygienic and health care textiles and automotive
industries. Nonwovens are also used in cover stocks, agriculture, aerospace, home
furnishings etc.
With the nonwovens successfully moving into more technical end-uses, the fiber
requirements have also become more important with regard to the fiber properties. The
cooperation between fiber supplier and fabric producers is now seen as important criteria
for more advancement to come about in the nonwovens field.
Business:
Incepted in the year 1995, the Company is one of a significant player in Non-Woven
Products such as Non-Woven Fabrics, Non-Woven Carpets, Non-Woven Felts, Non-Woven Designer
Carpets, Tufted Carpets and many others Textiles Products.
Product Range:
Non-Woven Fabrics Non-Woven Carpets Non-Woven Felt Non-Woven Designer Carpets Non-Woven
Geo Textiles Tufted Carpets
Factory Location:
The Company has its manufacturing plant located at Delhi Mile Stone 78 K.M, G.T, Road,
NH-44, Village Jhattipur, Post Box No. 3, Post Office, Samalkha,
Panipat-132103(Haryana).INDIA h
Our Quality:
Maintaining high quality standards in every stage of business is the trademark of our
company. We do obey quality dimensions from the beginning of collecting raw materials to
delivering the products. Exporting premium quality of products is the hallmark of our
corporate entity. For manufacturing the products, our production team normally uses pp,
polyester staple fiber as the raw materials. Our export quality inspection team is well
equipped with our in-house latest tools and techniques as well. We usually import products
like latex chemicals, textile material and stock lots of textiles, etc.
Infrastructure:
Our well-arranged infrastructure includes expert manufacturing team and experienced
production unit. Here, our engineers use several equipments like raw material processing
machines, designing machines, quality checking machines and many useful tools.
We also have high-tech lab, quality control room, site office in order to strengthening
our business. We make different design of carpet items at affordable price, so that
customers from across the world get benefited by our creativity.
Product wise performance:
Product wise performance of the Company has been mentioned in the attached balance
sheet of the Company.
Opportunities & Threats:
The future for the Indian textile industry looks promising, buoyed by both strong
domestic consumption as well as export demand. The new age Indian consumer, the organized
retail potential, which is creating the huge consumption opportunity, is by far the
biggest Opportunity for companies like us. With the aspirational and rich class in India
having a better penetration, our product led growth will help the company in both the
immediate and long run. Also, with the rural India being revisited by marketers through
the modern retail philosophy, the opportunity is huge. Competition from Indian and global
players remain a matter of concern and probable threat; while the company is well prepared
to tackle such issues on an ongoing basis.
Risks & Concern:
There is stiff competition in the Non-woven fabrics market with new national and
international entrants. On a macro level business continues to be impacted by changes in
Government Policy and International Markets.
i. Factors that may affect results of operations
ii. Fluctuation and increase in raw material prices. iii. Non-availability of raw
material and other resources
iv. Supply of Power
v. New Competitive products
vi. Government rules and regulations relating to Textiles Industry vii. Any slowdown in
the economic growth in general in particular
The Company continues to follow a suitable strategy to modify its risk profile by
eliminating and significantly reducing key business risks.
Outlook:
The Company is continuously trying to accomplish the desired results. The Company will
achieve more turnovers by various marketing strategies, offering more quality products,
launching new products etc. in coming years followed by increase in profit margin by way
of various cost cutting techniques and optimum utilization of various resources of the
Company.
Human resource / Industrial relations:
The Company believes that the human resources are vital in giving the Company a
competitive edge in the current business environment. The Companys philosophy is to
provide congenial work environment, performance-oriented work culture, knowledge
acquisition / dissemination, creativity and responsibility. As in the past, the Company
has enjoyed cordial relations with the employees at all levels. The Company continues to
run an in-house training program held at regular intervals and aimed at updating their
knowledge about issues Internal Control Systems and Adequacy. The Companys operating and
business control procedures ensure efficient use of resources and comply with the
procedures and regulatory requirements. There are adequate internal controls to safeguard
the assets and protect them against losses from unauthorized use or disposition and the
transactions are authorized, recorded and reported correctly. The Audit Committee
periodically reviews the internal controls systems and reports their observations to the
Board of Directors. The Directors have appointed M/s. R.S. GALYAN & ASSOCIATES
Chartered Accountants as the Internal Auditors of the Company for the FY 22-23.
Details of significant changes (i.e. Change of 25% or more as compared to the
immediately previous financial year) in key financial ratios, along with detailed
explanations therefor:
| Particulars |
Financial Year 2022-23 |
Financial year 2021-22 |
| Debtors Turnover |
8.37 |
7.17 |
| Inventory Turnover |
8.76 |
8.97 |
| Interest Coverage Ratio |
9.34 |
0.00 |
| Current Ratio |
1.68 |
2.34 |
| Debt Equity Ratio |
0.01 |
0.00 |
| Operating Profit Margin |
3.95 |
4.58 |
| (%) |
|
|
| Net Profit Margin (%) |
2.11 |
1.02 |
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