Annexure-C
1. OPERATING RESULTS
During the year under review, the Company reported Total Income of Rs. 391.94 Lakhs as compared to Rs. 216.40 Lakhs in the previous year. The Company incurred total expenses amounted to Rs. 102.50 Lakhs as compared to Rs. 303.71 Lakhs during the previous year. Profit after tax stood at Rs. 1692.68 Lakhs as against profit of Rs. 3727.78 Lakhs in the previous year.
2. INDUSTRY STRUCTURE & DEVELOPMENTS
It is a recognized fact that the knitwear sector in the textile industry plays an important role in the Indian Economy. This industry, however, is highly competitive and fragmented. During the year 2022-23, the exports of readymade garments have been reduced substantially and the export growth was severely affected due to several internal and external developments. Stiff Global Competition, Changing Technology & Fashion industry and above all failure to resume production have an adverse impact on business prospects and profitability.
The Company has added a new line of business activity in its main objects. The company endeavors into real estate to upward the profit of the company. However the Company has not entered into any contracts relating to real estate during the year under review.
3. OPPORTUNITIES & THREATS
The opportunities in the Textile Industry and the increasing growth in export of knitted garments augur well for this vital segment. There is a perceptible change in the outlook and shift for diversified and high value added products.
Textile Companies are always experiencing pricing pressures, lately due to stiff international competition. Besides, lack of modern technology and archaic personnel laws are some of the other areas of significant threats.
Addi Industries is seized of all such factors having adverse effect on its exports. It is always eager and endeavoring to constantly update its plant & equipment for producing the best quality products. A capital expenditure of Nil was incurred during the year on technology upgradation and modernization of machinery & equipment, wherever considered necessary.
4. SEGMENT-WISE PERFORMANCE
The Company operates in one segment only i.e. manufacturing of garments. Hence, no segment-wise performance reporting is available.
5. FUTURE PROSPECTS AND OUTLOOK
The Company will continue to explore various options to strengthen its capital base and balance sheet to augment the long-term resources for meeting funds requirements of its business activities, the future growth opportunities, general corporate purposes and other purposes.
6. RISKS & CONCERNS
The Company places its thrust on product excellence. Judicious risk management policies, strong systems, constant monitoring of various risk factors and a focus on greater market penetration continue to guide the business strategy of the Company. Strict monitoring is done to cut-down costs and overheads, whatever feasible, to make the product more prices competitive.
7. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has instituted a system of internal control and checks, which are supplemented by an on-going programme of internal audits and Management Information System (MIS). An annual planning and budgeting system has been put into practice. The Audit Committee of the Board actively reviews internal control systems as well as financial disclosures normally on every quarterly period.
8. MATERIAL DEVELOPMENTS IN HR
Personal relations during the year under report have been cordial. To conform to international standards, the Company conducts different training programs in-house. The Company has also identified and included specific programs on Health, Safety & Environment in every employee/s performance targets. A self- assessment system is in vogue amongst the staff, and a code of conduct amongst the senior management personnel, which is reviewed by the top management from time to time.
9. 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:
Particluars | FY 2022-23 | FY 2021-22 | % change over previous financial year | Explanation |
CURRENT RATIO | 336.71 | 27.40 | 1128.92% | Improved due to investment of surplus fund. |
10. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:
Return on Net worth for the FY 2022-23: 29.15%
Return on Net worth for the FY 2021-22: 81.83%
Change in Return on Net worth: -52.68%
Explanation: Decreased on account of reduction in the working capital during the year as compared to the previous year.
11. CAUTIONARY STATEMENT
The Statements in the Report of the Board of Directors and the Management Discussion & Analysis Report describing the Companys 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 since the companys operations are influenced by many external and internal factors beyond the control of the company.
For and on behalf of the Board of Directors of Addi Industries Limited |
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Sd/- |
Sd/- |
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Place : New Delhi | Chaman Lal Jain |
Hari Bansal |
Dated : 11-08-2023 | Managing Director |
Director |
(DIN: 00022903) |
(DIN: 00022923) |
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.