1. INDUSTRY STRUCTURE & DEVELOPMENTS:
The Textile Industry is a vital sector of the Indian economy with a rich history dating
back centuries. It is one of the major contributors to Indias Gross Domestic Product
(GDP) and also one of the largest employers in India. The Indian textile industry is
diverse, encompassing a wide range of textiles, including man-made fibres (MMF). The
Textile Industry is a vital sector of the Indian economy with a rich history dating back
centuries. It is one of the major contributors to Indias Gross Domestic Product (GDP) and
also one of the largest employers in India. The Indian textile industry is diverse,
encompassing a wide range of textiles, including man-made fibres (MMF). Since past few
months, exports in MMF textile products are declining, as there is reduction in demand for
textile products in the western countries as an outcome of Russia-Ukraine war. Similarly,
prices of raw materials such as dyes and chemicals, imported from European countries have
increased. As a result, the entire value chain has got affected. In a bid to give a boost
to the Textile Industry, the Central Government has increased the budget outlay from Rs.
3579 crores in 2022-23 to Rs. 4389.34 crores for 2023-24. Also, the government has
increased the budget outlay of Amended Technology Upgradation Fund (ATUF) from Rs. 650
crores in 2022-23 to Rs. 900 crores in 2023-24. The Textile Industry is one of the oldest
Industry in the country and plays an important role in the countrys economy in terms of
Industrial Production, Employment and foreign exchange earnings. The Textile Industry has
achieved a good growth in last two decades in terms of installed spindles and yarn
production. This could happen due to buoyant domestic and international demand, conducive
Government Policies. This industry provides indirect employment to large number of
workforce and also helps to develop many related ancillaries which generates further
employment. It is the second largest employment provider after the agricultural sector.
India is the second largest textile exporter and the fifth largest in apparel exports
globally, with a share of 6% and 4% respectively. Exports contributes major revenue to the
exchequer and is expected to increase to $300 billion by 2024-25 resulting in tripling the
Indian market share from 5% to 15%.
The Companys production, supply and sales have suffered due to COVID-19 but since the
markets opened up and work was resumed, the company has tried to recover the losses
incurred and increase the productivity to an optimum level to decrease the costs. The
overall performance of the company as compared to previous year has been better, keeping
in mind the impact of COVID-19 on the economy. It is hoped that textile industry may
perform better in the years to come, provided the prices of raw material are stable. These
are favourable indicators for the reasonable growth of textile industry in the country.
The capital expenditure of Rs. 1165.90 lakhs was incurred during the year out of which
2.2 MW of Solar Plant was commissioned in the month of November 2022. Further, The Company
has generated 1402904 units in the second half-year ending for the Financial Year which
had effect of decreasing the power cost. From the upcoming year, there will be estimated
annual generation of 3565000 units per year.
MARKETING:
Your Company is constantly focussing its efforts to cater to high end users. The
Company has got excellent relations with all its customers who have been dealing with the
Company over the years, by adhering to quality standards, delivery schedules and
competitive prices. The demand in domestic as well as export market is improving
gradually.
Government Initiatives:
The Indian government has introduced a number of schemes and policies to promote
exports in textile sector. 100% FDI is allowed in textile sector under automatic route.
2. STRENGTHS, OPPORTUNITIES, WEAKNESS AND THREATS:
STRENGTH:
Continuous raw material availability that helps industry to control costs and reduce
the lead times across the operation. Availability of Skilled Manpower provides competitive
advantage to industry.
Large and diversified segments in this industry that provide wide variety of products
OPPORTUNITIES:
Through investing in people, digitalisation, research & development, reaching out
to untapped global markets, green energy and supply chain diversification, margins can be
improved The cultural diversity and rich heritage of the country offers good inspiration
base for designs and thus ensuing value addition in the proud range. Natural demand
drivers including rising income levels, increasing urbanisation and growth of the
purchasing population drive domestic demand.
WEAKNESSES:
Fragmented Industry restricts the scope of enlarging base and emergence as global
leaders. Lack of desirable levels of Technological Development affects the productivity
and other activities in whole value chain. Continuous Quality Improvement is need of the
hour as there are different demand patterns all over the world.
THREATS:
The rapid deterioration of the global economic outlook following the Russia -Ukraine
war and mass lay-offs of employees by global corporations, has severely impacted demand
and margins. Change in Government policies may affect the industry. The financial costs,
taxes, increasing competition, closing of borders and lockdowns and availability of
working capital are other major threats
3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:
The Company is mainly engaged in the business of manufacturer of blended yarn and
accordingly this is the only Single Reportable Segment.
4. OUTLOOK:
The Company continuous to be an important player in the field of blended yarn in medium
and fined count segment with specialised products. There are good prospects for increasing
exports of yarn to European Countries. The company is making all efforts to explore new
markets apart from current markets.
5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has an adequate and effective internal control system commensurate with the
size and complexity of the organization. The Company has undertaken a comprehensive review
of all internal control systems to take care of the needs of the expanding size of the
Company and believes that these systems provide, among other things, a reasonable
assurance that transactions are executed with management authorization. It also ensures
that they are recorded in all material respect to permit preparation of financial
statements in conformity with established accounting principles along with the assets of
the Company being adequately safeguarded against significant misuse or loss. The company
has also upgraded the IT support systems. A system of internal audit to meet the statutory
requirement as well as to ensure proper implementation of management and accounting
controls is in place.
Key elements of the Internal Control Systems are as follows:
Existence of Authority Manuals and periodical updating of the same for all Functions.
Existence of clearly defined organisational structure and authority. Existence of
corporate policies for Financial Reporting and Accounting. Existence of Management
information system updated from time to time as may be required. Existence of Annual
Budgets and Long-Term Business Plans.
Existence of Internal Audit System.
Periodical review of opportunities and risk factors depending on the Global / Domestic
Scenario and to undertake measures as may be necessary.
The Audit Committee is periodically reviewing the Internal Audit Reports for the
auditing carried out in all the key areas of the operations. Additionally, the Audit
Committee approves all the audit plans and reports for significant issues raised by the
Internal and External Auditors. Regular reports on the business development, future plans
and projections are given to the Board of Directors. Internal Audit Reports are regularly
circulated for perusal of Senior Management for appropriate action as required.
Nominal foreseeable risks of the Companys assets are adequately covered by
comprehensive insurance. Risk assessments, inspections and safety audits are carried out
periodically.
6. FINANCIAL AND OPERATIONAL PERFORMANCE:
Attention is drawn to refer Directors Report on performance review.
7. HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIIONS:
There are no material developments in the Human Resources area. The industrial
relations have been generally satisfactory. The Company constantly reviews the man power
requirements and has a properly equipped Department to take care of the requirements. The
Company has constituted an Internal Complaint Committee (ICC) in pursuant to the
provisions of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 for prevention, prohibition, and Redressal of complaints / grievances
on sexual harassment of women at work places.
The Company continued the welfare activities for the employees, which include Medical
Care, Group Insurance, and Canteen Facility. To enrich the skills of employees and enrich
their experience, the Company arranges Practical Training Courses by Internal and External
Faculty.
8. ACCOUNTING TREATMENT
In the preparation of the financial statements the Company has followed the Indian
Accounting Standards (IND AS) specified under Section 133 of the Act, read with relevant
rules made there under. The Significant Accounting policies which are consistently applied
have been set out in the notes to the financial statements.
9. CAUTIONARY STATEMENT:
Readers are advised to kindly note that the above discussion contains statements about
risks, concerns, opportunities, etc., which are valid only at the time of making the
statements. Statements made in this report describing the Companys projections,
estimates, expectations or predictions may be ‘forward looking predictions within the
meaning of applicable securities laws and regulations. Actual results may differ from such
estimates, projections, etc. whether expressed or implied. Factors which would make a
significant difference to the Companys operations include availability of quality raw
materials, market prices in the domestic and overseas markets, changes in Govt.
Regulations and tax laws, economic conditions affecting demand/ supplies and other
environmental factors over which the Company does not have any control.
For and on behalf of the board For ADITYA SPINNERS LIMITED
|
Sd/- |
Sd/- |
|
K Vijay Kumar |
K Sriram |
|
Managing Director |
Director |
|
DIN: 00769568 |
DIN: 05103429 |
| Place: Hyderabad, |
|
|
| Date: 26.05.2023 |
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+91-9892691696
