AI Champdany Industries Ltd Management Discussions

A. Industry Structure and Development:

India is the worlds biggest producer of jute, followed by Bangladesh. The jute industry is among the oldest industries in India. In India, the jute industry plays a key role in the eastern region of the country. It supports about 40 lakh farm families and provides livelihood to lakhs of workmen. The Government of India has issued Jute Packing Order whereby food grains have to be packed 100% in jute bags and sugar 20% in jute bags. There is an increasing awareness world over to increase usage of environment friendly natural products. This has led to increase in demand for jute shopping bags.

Opportunities/Threats, Risks & Concerns:

Opportunities

1. Strong support of the Government of India by Jute Packaging Order whereby 100% food grain and 20% sugar must

be packed in jute bags.

2. Worldwide awareness and environment friendly products increasing. So jute products have a good opportunity

3. Demand for jute diversi ed products like shopping bag etc. increasing

Threats

1. Shortage of workers increasing.

2. Shortage of raw jute due to farmer opting for other more remunerative crop

3. Strong competition from Bangladesh whose labour and ber is cheaper than India

Outlook:

Due to large carryover of ber and good crop availability of Raw Jute in 2024-25 comfortable. Prices were reasonable and held steady. As the farmer did not get very attractive prices, farmers opted to grow other crop. Therefore total production of raw jute is likely to be quite less this year and prices are expected to increase significantly. Due to geopolitical tension export demand is expected to be sluggish. However due to favorable weather conditions the Government demand for Jute bags is likely to be robust.

B. Internal Control System & Adequacy:

The Company has adequate internal control system commensurate with its size and nature of business. The internal control systems are designed in such way that all the assets are safeguarded and protected against loss and all transactions are authorized, recorded and reported correctly. The Audit Committee monitors and evaluates and reviews the Internal Financial Control systems of the Company. Regular Internal Audits and checks are carried out to provide assurance that the responsibilities at various levels are discharged effectively and that adequate systems are in place.

C. Financial Performance with respect to Operational Performance:

Sales / Income from operation increased sharply from Rs 44.27 Crore to Rs.90.22 Crore. The company managed to reduce the old stock. By improving the working in the units, the company was able to increase the production and turnover by two times. The company expects to achieve still higher sales turnover this year.

D. Material Development in Human Resources/Industrial Relations Front:

The Company continues to rationalize its workforce by installing modern cost saving machines and overhauling the old machines.

E. Cautionary Statements:

Certain statements in this report may be construed as forward looking statements which have been made as required by laws and regulations, as applicable. There are several factors, which would be beyond the control of management and as such, may affect the actual results, which could be different from that envisaged.

	On Behalf of the Board
	N. Pujara
	(DIN 00047803)
Place: Kolkata	L. Jha
Dated: 30.05.2025	(DIN 08972636) } Directors