We have prepared a comprehensive overview of the industrial space
sequenced as macroeconomic view, industrial and exports revival in India, rising middle
class, digital leap fogging and financing demand.
A. ECONOMIC OUTLOOK
India?s textiles sector is one of the oldest industries in Indian
economy dating back several centuries. The textile industry has two broad segments. First,
the unorganized sector consists of handloom, handicrafts and sericulture, which are
operated on a small scale and through traditional tools and methods. The second is the
organized sector consisting of spinning, apparel and garments segment which apply modern
machinery and techniques such as economies of scale. Keeping in view the above
considerations, the company chooses the business of trading in textile industry.
India?s 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. A quick study of the survey report by the Confederation of Indian Textile
Industry (CITI) showed that the textile sector recorded private investment of about
^10,000 crore in first half of 2022-23 (i.e., April 2022 to September 2022). But the
investment slowed down to around ?7,000 crore in second half of the current fiscal. As per
the report, wearing apparel industry recorded growth in April (55.2 per cent), May (69.9
per cent), June (42.6 per cent) and July 2022 (15.1 per cent). But it went into red in
August (-18.3 per cent), September (-21.6 per cent), October (-36.6 per cent) and November
2022 (-11.7 per cent).
B. GLOBAL ECONOMIC OVERVIEW:
The war in Ukraine has triggered a costly humanitarian crisis that
demands a peaceful resolution. At the same time, economic damage from the conflict will
contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel
and food prices have increased rapidly, hitting vulnerable populations in low-income
countries hardest. Global economic prospects remain extremely uncertain one year into the
pandemic. New virus mutations and the accumulating human toll raise worries, while
increasing vaccine coverage lifts sentiment. The outlook depends on the impact of virus
and the effectiveness of vaccines; it additionally centers on how effectively economic
policies are deployed under such uncertain times. The International Monetary Fund (IMF)
projects global economic growth will fall to 2.9 percent in 2023 but rise to 3.1 percent
in 2024. The 2023 forecast is 0.2 percentage point higher than predicted in the October
2022 World Economic Outlook but below the historical average of 3.8 percent. Rising
interest rates and the war in Ukraine continue to weigh on economic activity. China?s
recent reopening has paved the way for a faster-than-expected recovery. Global inflation
is expected to fall to 6.6 percent in 2023 and 4.3 percent in 2024, still above
pre-pandemic levels. This is the weakest growth profile since 2001 except for the global
financial crisis and the acute phase of the COVID-19 pandemic. Global inflation is
forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5
percent in 2023 and to 4.1 percent by 2024. Monetary policy should stay the course to
restore price stability, and fiscal policy should aim to alleviate the cost-of-living
pressures while maintaining a sufficiently tight stance aligned with monetary policy.
Structural reforms can further support the fight against inflation by improving
productivity and easing supply constraints, while multilateral cooperation is necessary
for fast-tracking the green energy transition and preventing fragmentation.
C. COMPANY OVERVIEW:
The company is engaged in supplying, trading etc. of textiles including
Cotton, Woolen, Art Silk, Natural Silk, Readymade Garments, Hosiery, Synthetics Fiber and
Fabric and Mixed Fabrics, etc and related activities, where the outlook of the business
seems to be encouraging over and above we have been diversified into different businesses
ranging from third party product distributions (lowest balance sheet risk) to originating
unsecured personal loans, corporate loans (highest balance sheet risk). We believe that we
are well placed to leverage on the growth opportunities in the economy.
Alstone Textiles (India) Limited is poised for rapid growth. Unique
Experience and insight of its Management allows the company to discover new opportunities
and reveal their true potential. Growth and money cannot sustain an organization for as
long as uniqueness and excellence can. Keeping this in mind Alstone Textiles (India)
Limited delivers value and commitment based on highest professional standards.
D. FINANCIAL PERFORMANCE
The Company has incurred a Net Profit of Rs. 2452.122 (in Lakh)/-during
the year. The directors are optimistic about future performance of the Company.
E. OPPORTUNITIES &THREATS:
OPPORTUNITIES
• The textile industry records an annual growth of around6-8%.
• A shift towards the market of branded ready-made garment is
being observed.
• More number of emerging malls and retail industries are
providing opportunities to industry?s segments like handicrafts and apparels.
• There is a provision of more FDI and investment opportunities.
• Withdrawal of quota restriction is contributing immensely in
market development.
• The global needs are being catered with product development.
• An upsurge in the purchasing power and disposable income of
Indian customers has opened room for new market development.
THREATS
• Competing with other progressing countries like China.
• Striking a balance between the quality and price of products.
• Satisfying the demands of people all across the globe and at the
same time, steadily improving the quality of the products.
• Striking a balance between demand and supply.
• Environmental and international labor laws.
• Removal of quota system will fluctuate the export demand.
F. RISK MANAGEMENT ANDCONCERNS
Your company operates in the textiles industry Sector, which is
affected by variety factors linked to economic development in India and globally which, in
turn, also affected global fund flows. Any economic event across the globe can have direct
or indirect impact on your company. To mitigate this, Company has diversified its revenue
stream across multiple verticals.
Your Company?s risk management system is a comprehensive and
integrated framework comprising structured reporting and stringent controls. Through its
approach it strives to identify opportunities that enhance organizational values while
managing or mitigating risks that can adversely impact the company?s future
performance. Within the organization, every decision taken is after weighing the pros and
cons of such a decisionmaking taking note of the risk attributable.
Your Company has established a guideline to inform board members about
the risk assessment and mitigation process. The Company manages, evaluates, and reports on
the major risks and uncertainties that may jeopardize its ability to meet its strategic
goals. The Company?s Risk Management Policy focuses on identifying, assessing, and
managing risks related to the Company?s assets and property, Employees, Foreign
Currency Risks, Operational Risks, and Non-compliance with statutory enactments,
Competition Risks, and Contractual Risks.
G. HUMAN RESOURCE
The Company keeps developing its organizational structure consistently
over time. Your company has been working diligently to develop its human resource skills,
competencies, and capabilities, which is essential to achieving the desired results in
line with its strategic business objectives. Efforts are made to follow excellent Human
Resource practices. Adequate efforts of the staff and management personnel are directed on
imparting continuous training to improve the management practices.
The human resource policy of your Company creates an environment that
encourages employees to achieve their maximum potential. The Company has developed a
recruitment strategy that ensures the right candidate with the relevant skills is
recruited for the role.
The objective of your Company is to create a workplace where every
person can achieve his or her full potential. The employees are encouraged to put in their
best. Lot of hard work is put in to ensure that new and innovative ideas are given due
consideration to achieve the short-term and long-term objectives of your company.
H. MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATION FRONT,
INCLUDING NUMBER OF PEOPLEEMPLOYED
The employees are satisfied and having good relationship with the
Management. Your Company values each employee, supports them, and strives to provide
opportunities based on their skill sets, resulting in mutually beneficial relationships
between the company and its employees. Your Company has developed a policy that increases
employee job satisfaction while simultaneously increasing production.
I. DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS ANDSENIOR
MANAGEMENT PERSONNEL WITH THE COMPANY?S CODE OFCONDUCT
This is to confirm that the Company has adopted a Code of conduct for
its employees including the director. The Company has in respect of the financial Year
ended 31st March, 2022, received from the Senior Management team of the Company
and the members of the Board, a declaration of Compliance with the code of Conduct as
applicable to them.
J. DISCLOSURE OF ACCOUNTING TREATMENT
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified under Section 133 of the Companies Act, 2013
("the 2013 Act") and the relevant provisions of the 2013 Act, as applicable. The
financial statements have been prepared on going concern basis under the historical cost
convention on accrual basis.
The Company has follows to continue with the period of 1st
day of April to 31st day of March, each year as its financial year for the
purpose of preparation of financial statements under the provisions of Section 2(41) of
the Companies Act, 2013.
K. INTERNAL CONTROL SYSTEMS
Your Company has an internal control system that is suitable to the
characteristic and scale of its operations and that efficiently and efficiently addresses
all aspects of the business and functional departments.
The framework encompasses a compliance management team with established
policies, norms, and procedures, as well as applicable statutes, rules, and regulations,
as well as an inbuilt system of checks and balances, to ensure that appropriate and prompt
corrective actions are taken in the event of any discrepancies from the defined standards
and parameters.
Internal control systems are examined on a regular basis for
effectiveness and deliverability, so that any necessary precautions to reinforce them can
be undertaken in response to changing company requirements. Your Company conducts ongoing
reviews of its systems, procedures, and controls, comparing and aligning them with
industry standards.
L. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the
Company?s objectives, expectations, predictions and assumptions may be "FORWARD
LOOKING" within the meaning of applicable Laws and Regulations. Actual results may
differ materially from those expressed herein, important factors that could influence the
Company?s operations include domestic economic conditions affecting demand, supply,
price conditions, and change in Government?s regulations, tax regimes, other statutes
and other factors such as industrial relations.
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