effingo textile trading ltd Management discussions

Your Directors are pleased to present the Management Discussion and Analysis Reports for the year ended March 31, 2018 as under:

• Overall Review :

The company manufactures synthetic fabrics in the form of semi-finished sarees and dress materials. These products are offered in various designs as per customer requirements. Semifinished sarees and dress materials manufactured by the Company are further processed by our customers before sellingto the end-users. The main raw material for our product is man-made yarn, which is sourced from local markets. The Company based on its experience and its standards, conforms to major specifications and customer requirements.

• Industry Structure& Development:

The man-made fibre textile industry is one of the largest organized industries in the country in terms of employment and number of units. Besides, there are a large number of subsidiary industries dependent on this sector, such as those manufacturing machinery, accessories, stores, ancillaries, dyes and chemicals. Mumbai is known as the textile city of Maharashtra. The textile industry is one of the oldest and the most widespread industries in Mumbai and surat. A major part of the citys population is associated with the textile industry. The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing as well as embroidery.Surat is well known for its synthetic products market. It is mainly engaged in the production and trading of synthetic textile products

• Opportunities and Threat

India has the potential to double its market size in the long run as China is losing its competitive advantage in textiles mainly on account of increasing labour & power costs, the appreciating Yuan, and focus on the domestic market with high value products. The shift from China to India is expected to happen in the long run, to make India a dependable source of supply for the World. Increasing competition from countries like Bangladesh, Vietnam, Pakistan and Sri Lanka due to favorable tariff structures on exports to developed markets like the US, EU, Canada, Australia, etc poses a significant challenge to Indian exports. Exports from India attract a much higher duty as compared to other Asian countries.

• Business operations:

The company has been now focusing on the Textile projects in and around the city of Mumbai and other state. During the year, the company witnessed inflow of funds for business expansion plans of the company. Further based on this, the company has once again started its operations and the company looks forward at the future with hope and zest which will enhance shareholders value of the Company

• Out Look

To overcome the challenges and competition, we have taken various initiatives to reduce the operationalAccording to International Monetary Fund (IMF), growth in advanced economies is projected to rise by 0.2 percentage points in 2016 to 2.1 percent, and hold steady in 2017 the IMF, India will be the fastest growing major economy in 2016-17 growing at 7.5%, ahead of China, at a time when global growth is facing increasing downside risks. Indias growth is expected to continue to be driven by private consumption, which has benefited from lower energy prices and higher real incomes.

• Risks and Concerns

The largest component of costs involved in making Synthetic Fabric is attributable to raw materials. Given the volatile trend in Fabrics and demand for Fabrics for competing applications the pressure on input costs can be expected to fluctuate.

• Human relations

The Company recognizes that its human resource is its strength in realizing its goals and objectives.

• Cautionary Statement:

The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws orregulations. Actual results could differ materiallyfrom those expressed or implied.

	By Order of the Board of Directors For Effingo Textile & Trading Limited
	Sd/-	Sd/-
Place: Mumbai	Priya Rawal	Gaurav Bahety
Date: 06th Sept 2018	Director	Director