subhash silk mills ltd Management discussions

Indian Economic & Textile Industry overview - The Indian Economy continues to show resilience amid Global Uncertainties. Despite significant challenges in the global environment, India was one of the fastest growing economies in the world. Indias overall growth remains robust and the Indian Economy closed with 7.2% GDP growth in financial year 2022-23. Indias Economic Survey 2022-23 indicates that private investment gathered momentum during the current fiscal in all major sectors, including the textile sector.

However, manufacturing industries like textiles, apparel and leather have been showing tepid growth as the export demand for these products remained soft due to slow global demand. However, the overall Indian economy is relatively strong and is outperforming major economies; the textile sector is a notable exception. Exports which constituted 22% of industry have fallen significantly.

Opportunities & Threats: The rapid industrialization in the developed and developing countries and the evolving technology are helping the textile industry to have modern installations which are capable of high-efficient fabric production. The Textile and Apparel market is poised to grow, led by boost in demand and the government support in form of attractive schemes such as Production Linked Incentive (PLI), Mega Investment Textile Parks (MITRA) will further drive the way for the US$ 250 billion target. Another step taken by the Ministry of Textiles towards positioning India as a global leader in technical textiles manufacturing is the invitation of Research proposals for Funding for Design, Development and Manufacturing of Machinery, Tools, Equipment, and Testing Instruments under NTTM.

The global economy is gradually recovering from the impact of pandemic and at the same time facing new challenges emerging from Russias invasion of Ukraine. The slowdown in global growth and economic output coupled with increased uncertainty is likely to dampen global trade growth. These may be exacerbated by plateauing export growth on account of slackening global demand.

Segment-wise or product-wise performance Your Company has made sale of Readymade Garments to the service sector and of fabrics to various traders.

Financial Performance - The Companys total Income increased to Rs. 2,57.96 Lakhs from Rs. 2,48.87 lakhs in previous year, and Company has earned profit after taxes of Rs. 14.14 lakhs as compared to profit after tax of Rs. 18.85 lakhs in the previous year.

Risks & Concerns - Inflation is expected to remain elevated for the foreseeable future, driven by war-induced commodity price increases and broadening price pressures. The ability to successfully navigate cost pressures would have a significant bearing on the overall performance of your Company. There are currently no significant borrowings and as such the Company is well isolated from financial risks & concerns, especially with the increasing interest rates.

Internal Control Systems - The Company has suitable internal control systems which ensure safeguarding the Companys assets, promote efficiency and ensure compliance with legal and regulatory provisions. The audit committee is headed by a businessman with over 40 years of financial expertise. The statutory auditors also discuss their comments and findings with the management as well as with the audit committee.

Employees: The Company has 5 employees on its payroll.

For and on behalf of the Board of Directors,

Of SUBHASH SILK MILLS LIMITED

SD/-

Sumeet S. Mehra

Chairman & Director

DIN: 00342934

Place: Mumbai

Date: August 12, 2023