amit international ltd share price Management discussions

(1) This section shall include discussion on the following matters within the limits set by the listed entitys competitive position:

1. Industry structure and developments:

The Textile industry is of significant importance to the Indian economy. Manmade Fibers contribute to major share of global fiber basket along with share of cotton declining steadily. The shift is even more prevalent with the intensifying issues of cotton shortage and price volatility coupled with decrease in crude oil prices being main feed stock for petroleum products like polyesters etc.

As in the past both demand and supply is expected to grow steadily.

2. Opportunities and Threats:

Polyester has overtaken cotton as the dominant fiber, but the cost and availability still plays major role in inter fiber substitution. Declining crude oil prices will significantly help polyester industry to grow at faster rate in near future. Textiles, which is the countrys second largest employment generating sector after agriculture has been hit hard since the global economic slowdown It is also facing problems of risk in raw material prices and high cost of credit.

3. Segment-wise or product-wise performance:

Company operates in single segment hence segment wise reporting is not applicable, Product wise performance is expected to improve.

4. Outlook:

Polyester filament fabric owing to its low-cost, versatility of characteristics, durability and wrinkle -resistance as well as very low per-capita consumption holds outstanding potential in India. However increase in the installed capacity may lead to price instability and pressure on profit margins. While the medium to long term projections for the industry is widely expected to be growth oriented, your companys operations have suffered adversely during the year under review due to problems narrated in the Directors Report. Your directors are making efforts to reduce the cost raw materials by using recycled materials in place of virgin materials to improve capacity utilization.

5. Risks and concerns:

The company like any other business concern is subject business risks arising from interest rate fluctuations, raw material price fluctuations and global economic condition. Decline in crude oil prices resulting in reduction in key raw materials like pTa and MEG put pressure on margins of recycled materials and also results in slow down of demand. However this phase is considered temporary and in long run it will lead to increase in demand.

6. Internal control systems and their adequacy:

The company has adequate internal control systems and is in process of further strengthening the existing internal control systems. The financial statements are reviewed periodically by the management. The company has set up an internal Audit trail whereby deviations, if any, can be brought to the notice of the management quickly and remedial actions are initiated immediately.

7. Discussion on financial performance with respect to operational performance:

Particulars	As on 31/03/2023	As on 31/03/2022
Turnover and other income	2948.37	4105.40
Interest and Financial Charges	0.00	0.80
Depreciation and Amortization Expense	0.00	0.00
Profit /Loss(-) Before Tax for the year	390.68	1599.13
Profit /Loss(-) After Tax for the year	318.68	1309.13

8. Material developments in Human Resources / Industrial Relations front, including number of people employed:

The industrial relations remained cordial throughout the year. The employees of the company have extended a very productive co-operation in the efforts of the management to carry the company to greater heights. Continuous training down the line is a normal feature in the company to upgrade the skills and knowledge of the employees and workmen of the company.

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 therefore, including:

(1) Debtors Turnover: N.A.

(ii) Inventory Turnover: N.A.

(iii) Interest Coverage Ratio: N.A.

(iv) Current Ratio: 0.6995 for the year ended 2022-23 and 1.1023 the year ended 2021-22. Current Ratio has decreased due to decrease in bank balance as compared to previous year impacting current assets.

(v) Debt Equity Ratio: 0.0013 for the year ended 2022-23 and 0.0138 the year ended 2021-22. Borrowings have been reduced during the year and hence, debt equity ratio has declined.

(vi) Operating Profit Margin (%): N.A.

(vii) Net Profit Margin (%): N.A.

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 year ended 2022-23 is 0.0016, whereas for the year ended 2021-22 is 0.0067.Profit has declined during the year hence, Return on equity has been reduced during the year.

(2) Disclosure of Accounting Treatment:

Financial statements have been prepared in accordance with applicable Accounting Standards, hence Para B (2) of Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable to the company.