2022-23
Annexure -I
1. Global Economy
The year 2022 saw the developed world grapple with some of the highest levels of
inflation in recent history. Fueled by historic fiscal and monetary support to counter the
impact of COVID-19, the prices of food and fuel became the primary concern especially in
the second half of the year. As per the IMF estimates, the world economy grew by 3.4% in
2022. The most notable disparity was seen between the growths of Advanced and Emerging
economies. The Advanced economies grew by 2.7% in 2022 while the Emerging economies led by
China and India grew by 4% in 2022.
The major forces that shaped the world economy in 2022 seem to continue in 2023 but
with changed intensities. Debt levels remain high, limiting the ability of fiscal
policymakers to respond to new challenges. Commodity prices that rose sharply following
Russias invasion of Ukraine have moderated, but the war continues, and geopolitical
tensions are high. Infectious COVID-19 strains caused widespread outbreaks last year, but
economies that were hit hard most notably China appear to be recovering with easing of
supply-chain disruptions. Although inflation has declined as central banks have raised
interest rates, underlying price pressures are proving sticky, with labour markets tight
in several economies. The US Federal Reserve in a quick turn of stance, started hiking the
interest rates, which has continued well into the summer of 2023. The Eurozone continued
to struggle with energy prices, partly as a result of the war and the absence of Russian
gas flowing in through Nordstream pipelines.
The IMF has projected the global GDP to grow by 2.8% in 2023 before rising slowly and
settling at 3.0% five years out the lowest medium-term forecast in decades. The anemic
outlook is partially due to the relatively slower decline of global inflation which is set
to fall from 8.7% in 2022 to 7.0% in 2023 on the back of lower commodity prices. Advanced
economies are expected to see an especially pronounced growth slowdown, from 2.7% in 2022
to 1.3% in 2023. The US and Eurozone economies are expected to see muted growth at 1.6%
and 0.8% respectively in 2023, while the UK economy is expected to see a contraction of
0.3%. The World Bank has raised fears that the ongoing slump in global economic growth
will likely result in a "lost decade".
2. Indian Economic Outlook:
India has emerged as the shining beacon in a grim global scenario by growing at 6.8% in
2022. The IMF has estimated Indias growth at 5.9% in FY23 and 6.3% in FY24, well above
other economies of significant scale causing many to state that this could well be Indias
decade. The Reserve Bank of India (RBI) has tried to cushion the economy from rising
prices and maintain liquidity. Still navigating inflation and preserving financial
stability while boosting growth drivers will continue to be a tightrope walk. The central
government has played a major role in boosting the growth of the economy as it continued
with its capital expenditure push in the Union Budget 2023-24. In FY 2023-24, capex is
budgeted at 10 lakh crore, which will constitute 3.3% of GDP. As per the RBI, such level
of capex spending can take Indias real GDP growth close to 7% in FY24. Despite the
challenging global environment, the Indian economy with its strong fundamentals and
massive demographic strengths seems en route to outpace other large economies
3. Business Scenario:
Financial Year 2022-23 was a year of average performance for Ambassador Intra Holdings
Limited as Company has not been able to achieve a remarkable growth in its revenue, we
continued to maintain our position. Trading and textile sector is one of the oldest
industries in Indian economy dating back several centuries. The close linkage of the
textile industry to agriculture (for a raw materials such as cotton) and the ancient
culture and traditions of the country in terms of textiles make the Indian textiles sector
unique in comparison to the industries of other countries. The Indian textile industry has
the capacity to produce a wide variety of products suitable to different market segments
both within India and across the world. The textiles industry has made a major
contribution to the national economy in terms of net foreign exchange earnings and
contribution to the GDP.
4. Opportunities and Threats: Opportunities:
Technical Textiles.
Growing domestic market.
Large Potential Domestic and International Market.
Vast export marked to explore.
Buyers preference for India.
The rapid growth of E-commerce
Favorable government initiatives such as the National Technical Textiles Mission
(NTTM),
Threats:
Competition from other developing countries especially China.
Geographical Disadvantage.
Political/Economic Instability.
To male balance between price and quality.
Compliance issues
Being a labor-intensive sector, the shortage of skilled workforce
5. Outlook and Future Prospects:
The textile industry is a well-established with showing storing features and bright
future. The textile industry is capital and technology-intensive comparable with
automobiles aircraft computers and heavy machinery industry. In comparison with other
countries like China the cost of textile production in India is quite less. Textile sector
is the oldest and largest manufacturing sector in India.
The textiles manufacturing business is a pioneer activity in the Indian manufacturing
sector and it has a primordial importance in the economic life of the country which is
still predominantly based on the agro-alimentary sector. The sector profitability is
likely to improve gradually with players passing on increased raw material prices to
end-users given the healthy demand a depreciating rupee and waning impact of the
structural issues.
The future for the Indian textile industry looks promising buoyed by both strong
domestic consumption as well as export demand. High economic growth has resulted in higher
disposable income. This has led to rise in demand for products creating a huge domestic
market.
The textile industry is expected to attract investment of about $120 billion by
2024-25. Exports are also expected to rise from the current $39 billion to $300 billion by
2024-25. The action plan notes that attracting the required investment entails ready
availability of developed land with adequate infrastructure, skilled manpower and easy
connectivity to ports, along with creation of new mega textile parks, lowering the cost of
production and logistics, and encouraging new entrants through start-ups as well as FDI.
Further, the animal feed is produced in more than 130 countries globally. Different
species are reared across these countries for various purposes including milk, protein
etc. Feed is considered to be a major component of the animal rearing as it adds
significant cost to the production system. Type of feed production varies across various
regions and largely depends on the animal population and their economic importance in the
region. Feed requirement of the animals also vary with the purpose of rearing it,
including meat, egg and milk production. The industry makes a significant contribution to
the economic and nutritional wellbeing of millions of people globally.
6. Risks & Concerns:
In todays complex business environment almost every business decision requires
executives and managers to balance risk and reward. Effective risk management is therefore
critical to an organizations success. Timely and effective risk management is of prime
importance to our continued success.
7. Subsidiaries/Joint Ventures:
The Company does not have subsidiaries, associates and joint venture companies.
8. Human Resources:
The Companys relations with the employees continued to be cordial and harmonious
relations with its employees. It considers manpower as its assets and that people had been
driving force for growth and expansion of the Company. Focus was kept on acquisition,
retention and development of necessary skilled manpower keeping in view our current
operations requirement as well as the future business expansion and growth plans. The
Company continues to conduct employee trainings across several functions pertaining to
technical, behavioral, general health safety and environment. A regular employee
performance evaluation system is in place to evaluate the individual performance as well
as determining their development needs and future potential.
9. Segment Wise or product wise performance:
The Company operates in only single segments. Hence segment wise performance is not
applicable.
10. Internal Control Systems and their adequacy:
Internal Control system and adequacy Internal Control measures and systems are
established to ensure the correctness of the transactions and safe guarding of the assets.
Thus, internal control is an integral component of risk management. The Internal control
checks and internal audit programmers adopted by our Company plays an important role in
the risk management feedback loop in which the information generated in the internal
control process is reported back to the Board and Management. The internal control systems
are modified continuously to meet the dynamic change. Further the Audit Committee of the
Board of Directors reviews the internal audit reports and the adequacy and effectiveness
of internal controls.
11. Cautionary Statement:
Statement in this report describing the Companys objectives projections estimates and
expectation may constitute "forward looking statement" within the meaning of
applicable laws and regulations.
Forward looking statements are based on certain assumption and expectations of future
events. These Statements are subject to certain risk and uncertainties. The Company cannot
guarantee that these assumption and expectations are accurate or will be realized. The
actual results may different from those expressed or implied since the Companys
operations are affected by many external and internal factors which are beyond the control
of the management. Hence the Company assumes no responsibility in respect of
forward-looking statements that may be amended or modified in future on the basis of
subsequent developments information or events.
By order of the Board of Directors |
Sd/- |
Sd/- |
|
Siddartha Ajmera |
Atmaram Didwania |
Place: Ahmedabad |
Managing Director |
Director |
Date: 02/09/2023 |
DIN: 06823621 |
DIN: 01899120 |
+91-9892691696
