Eastern Silk Industries Ltd Management Discussions.

(In terms of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

1. OVERALL REVIEW, INDUSTRY STRUCTURE AND DEVELOPMENTS

The overall performance of the Company for the year under review does not improved much but it intends to positively match the global market. The infusion of the new machineries and technology would be required to bring down the cost of production. The company is developing standard designs in common warps for regular products to reduce cost and it is hoped that these measures will bring the positive results for the future. The equilibrium in demand supply will take some time.

2. OPPORTUNITIES AND THREATS

The Company is engaged in manufacturing of textile and allied products currently from developing yarn to producing premium fashionable fabrics. Keeping itself updated on fashion and market trends worldwide, the company is today globally recognised for its deep understanding of silk. The threat is from small players who will enter the market and existing players creating competition in these segments due to which the margins will be under pressure in the future.

Company Status:

The Company has not been able to increase its customer base. Due to high production cost the margins are under pressure. To strengthen the Companys drive on cost optimization, the Company is aggressively working with various international suppliers and co-operating on technical know-how exchange to strengthen its contacts for a long term and continued supply of raw material.

Company Outlook:

With successful GST implementation, which brought nationwide uniform tax structure, the Company is hopeful that it would pave way for better stability in prices and maintaining the margins. Despite threats and concerns pertaining to high production cost, skilled man power requirement, dependency on imported raw materials and others the outlook remains cautiously positive to improve its performance.

3. RISK MANAGEMENT (Forms part of Directors Report) 4. SEGMENT WISE AND PRODUCT WISE PERFORMANCE

The Companys business activities falls within a single primary segment viz. Textiles. The Company does not have any other segment as of now. The products and dealings are closely related with textiles and its allied products.

5. HEALTHY, SAFETY AND ENVIRONMENT

The Company accords significant importance to health, safety and Environment and related issues are taken up on priority basis. The Company ensures compliance of all statutory regulations related to Health, Safety and Environment. The Companys business activities falls within a single primary segment viz. Textiles. The Company believes in environmental protection and maintaining ecological balance. All discharges are closely monitored and were well within the statutory norms during the year under review.

6. HUMAN RESOURCE AND INDUSTRIAL RELATIONS

The Company strongly believes in the importance of Human Capital and nurturing the same. To match with the fast paced technological changes and also the changes in their business environment, the employees are provided regular training for upgradation of skills. The Company understands the importance of multi-skilling and job rotation and hence scientifically moves its employees in various roles thereby creating a versatile work force.

7. INTERNALLY CONTROL SYSTEM AND THEIR ADEQUACY (Forms part of Directors Report)

8. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE (Forms part of Directors Report) 9. CAUTIONARY STATEMENT

Certain statements in this report on Management Discussion and Analysis describing the Companys view about the industry, objectives, projections, estimates, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ from those implied therein. Important factors that could make a difference include economic developments within India and countries with which the Company conducts business, government regulations and tax regime, availability of raw materials and prices and other incidental factors.

ANNUAL COMPLIANCE WITH THE CODE OF CONDUCT FOR THE FINANCIAL YEAR 2018-2019

Pursuant to the Schedule V (Part D) of SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015, I hereby confirm that the Company has received affirmations on compliance with the Code of Conduct for the financial year ended March 31, 2019 from all the Board Members and Senior Management Personnel.

For and on behalf of the Board of Directors
Eastern Silk Industries Limited
Place: Kolkata Sundeep Shah
Date : 30th May, 2019 Chairman & Managing Director