A K Spintex Management Discussions


Industry Structure and development

Fabric Processing (Textile Industry) development continues to be the thrust area and the government is committed to locus and spend on Textile industry development in the country, large and long term investments and new global players are expected to enter the Fabric processing industry as there is huge potential for the Textile industry development in the country. There are various factors which act as strong drivers for long term sustainable real estate demand in India such as:

• Continued economic growth;

• Trend chaogc in clothing,

• Young working population

• Rising disposable income;

• Increase Modernization;

Opportunities, Threat and Outlook

The Textile Sector in India has undergone rapid changes in the past few years Bhihvara is known as textile city due to infrastructure and environment fabric processing industry have good opportunity changes in preference and choice of young generation also provide opportunity. New competitors have entered the core area of our operations in recent times. The fight for the market share has intensified with growing competition. This, combined with substantial increase in costs of inputs has neutralized the impact of Governments positive policies for Textile sectors. Most of the new players, who have come in with the support of large business groups, have the financial strength to sustain large scale investments. These players continue to propel the competition with unproved quality of products and services.

Product Wise Performance

AKSI is one of the leading Process House for Processing of Polyester Fabric and Cotton Fabric in india. The Company provides quality processing with complete satisfaction.

To improve the operational and financial performance the company has:

• Implemented various energy-savings initiatives.

• Introduced new, high value techniques for fabric processing.

Risks and concerns

The company is continuously evaluating die risks of getting into areas where it has no exposure earlier, as compared to the risk of continuing to operate in an overcrowded, matured market uniformity in the regulatory environment concerning the fabric processing (Textile industry ) also the availability of quality manpower, market research models and reliable database on industry are concerns that need to be addressed for attracting FDI inflows in the industry.

Compliance

The level of compliance is increasing day by day and any default can attract penal provisions. Your company is regularly monitoring and reviews the changes in regulatory’ framework and also monitoring its compliance mechanism so as to ensure that instances of non-complaince do not occur.internal Control System

The Company has adequate internal control procedure and systems. Internal control system plays a great role in achieving the targets of any organization. Your Company gives top priority to establish a capable internal control system The present internal control system of the Company is capable of facing the challenges and threats arising from the outside environment.

The Companys internal control system aims to ensure that:

• Laws and regulations arc complied with,

• The instructions and directions issued by the Board and Management arc complied and implemented.

• The Company’s internal processes are functioning correctly, particularly those implicating the security of its assets;

• Financial information is reliable and generally, contributes to the control over its activities, to the efficiency of its operations and to the efficient utilization of its resources

• To prevent fraud, irregularity, misappropriation of Companys resources and early detection thereof.

• The internal controls are periodically reviewed by the Audit Committee to ensure their effectiveness and adequacy.

Human Resources

The Company believes that the human capital is the key engine for its growth and competitiveness. It continues to focus on HR practices, systems and people development initiatives that encourage continuous learning on the job and meritocracy and which enhance the organizations capability. The Companys objective going forward would be to nurture and harness core management reams and explore outsourcing which will enable us to enhance management bandwidth and focus. In this direction we have already successfully outsourced our construction activities to "best-in-class" contractors for all our current and upcoming projects. The changing business scenario necessitates continuous development of employees in terms of skills and competencies in line with the Company’s requirements.

Risk management

Risk management is the identification, assessment and taking pro-active measures to face the impact of various risks. Risks may arise from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters etc. The Company has adopted appropriate procedure and policies to safeguard the company against business and other risk 10 mitgate its impact to the extent possible. The Risk management plans & policies are periodically monitored, reviewed and evaluated and updated from time to time.

Cautionary Statement

The Management Discussion and Analysis contains certain. forward looking statements. These statements pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from the forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, Fiscal deficits, regulation etc. and other factors which cannot be anticipated.