kiran syntex ltd Management discussions

> Competitive Position:

(a) Industry structure and developments:

For the Textiles industry, the global focus is shifting from China to India due to cost and stability factors. The governments positive steps are expected to help this shift and if foreign investments in textiles retail materialize, the consumption of the textile product in the domestic market should increase in the years to come. Recently, Government has withdrawn the requirement of export contract registration for cotton and cotton yarn and now these are in free list, without any requirement of registration, which should boost export of cotton yarn and simultaneously, the domestic market is expected to improve.

(b) Opportunities and Threats:

Opportunities:

1. Increase in consumption pattern across the country along with the rising demand for high quality premium fabrics.

2. Large and potential domestic and international market. Promising export potential.

Threats:

1. Pricing pressure due to opening up of quotas.

2. Enhanced competition from other countries.

3. Rising production cost from increasing wages, power and interest cost.

(c) Segment-wise or product-wise performance:

Company operates in single segment and segment wise reporting is not applicable, Product -wise performance is expected to improve.

(d) Outlook:

The Company shall continue to explore its policy of expansion based on availability ol resources and opportunity.

(e) Risks and concerns:

Risk is an inherent part of any business. There are various types of risks, that threat the existence of a company like Strategic Risk, Business Risk, Finance Risk, Finance Risk, Environment Risk, Personnel risk, Operational Risk, Reputation Risk, Regulatory Risk, Technology Risk, Political Risk etc. Your company aims at enhancing and maximizing shareholders value by achieving appropriate trade -off between risk & returns.

(f) Internal control systems and their adequacy:

The company has adequate internal control systems and is in process of further strengthening the existing internal control systems. The financial statements are reviewed periodically by the management. The company has set up an internal Audit trail whereby deviations, if any, can be brought to the notice of the management quickly and remedia actions are initiated immediately.

(g) Discussion on financial performance with respect to operational performance:

Particulars	As on 31/03/2022	As on 31/03/2021
Turnover and other income	1.50	0.00
Gross profit/Loss (-) before Financial Charges & depreciation	(8.81)	(6.31)
Interest and Financial Charges	0.00	0.00
Profit/Loss(-) before depreciation	(8.81)	(6.31)
Depreciation	0.01	0.02
Profit /Loss(-) After Tax for the year	(8.82)	(6.33)

(h) Material developments in Human Resources / Industrial Relations front, including number of people employed:

The industrial relations remained cordial throughout the year. The employees of the company have extended a very productive co-operation in the efforts of the management to carry the company the greater heights. Continuous training down the line is a normal feature in the company to upgrade the skills and knowledge of the employees and workmen of the company.

> Disclosure of Accounting Treatment:

Financial statements have been prepared in accordance with applicable Accounting Standards, hence Para B (2) of Schedule V of Securities and Exchange Board of India (LODR) Regulations, 2015 is not applicable to the company.

(i) 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, including:

(i)Debtors Turnover:	Nil
(ii)Inventory Turnover:	Nil
(iii)Interest Coverage Ratio:	Nil
(iv)Current Ratio:	5.55%
(v)Debt Equity Ratio:	Nil
(vi)Operating Profit Margin (%)	Nil

(vii)Net Profit Margin (%) or sector-specific equivalent ratios, as applicable: Nil

The disclosure regarding ration has been inserted from current financial year and the comments thereon regarding variations compare to the previous year shall be given from next year.

C. Corporate Governance Report: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (LODR) Regulations, 2015, the provision of Para C of Schedule V of SEBI (LODR) relating to Corporate Governance Report is not applicable to the company.

D. Declaration signed by the chief executive officer stating that the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (LODR) Regulations, 2015, the provision of Para D of Schedule V of SEBI (LODR) relating to Declaration by CEO is not applicable to the company.

E. Compliance certificate from either the auditors or practicing company secretaries regarding compliance of conditions of corporate governance shall be annexed with the directors report: Pursuant to Regulation 15(2) of Securities and Exchange Board of India (LODR) Regulations, 2015, the provision of Para E of Schedule V of SEBI (LODR) relating to Compliance Certificate is not applicable to the company.

F. Disclosures with respect to demat suspense account/unclaimed suspense account: NIL

Place: Surat	By Order of the Board
Date: 30/05/2022	For Kiran Syntex Limited
	Sd/-
	Maheshkumar Motiram Godiwala
	(DIN:01779079)
	Chairman and Managing Director