Elitecon International Ltd Management Discussions.

The purpose of this discussion is to provide an understanding of financial statements and a composite summary of performance of our business. Management Discussion and Analysis (MDA) is structured as follows:

• Textile Industries Structure and Development

• Result of Operation

• Opportunities and Threat

• Risk and Concerns

• Internal Control Systems and adequacy

• Material Development in Human Resources

Textile Industry overview

Indias textiles sector is one of the oldest industries in Indian economy dating back several centuries. Even today, textiles sector is one of the largest contributors to Indias exports with approximately 15 per cent of total exports. The textiles industry is also labour intensive and is one of the largest employers. The textile industry has two broad segments. First, the unorganised sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organised sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale.

First, the unorganised sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organised sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale.

The Indian textiles industry is extremely varied, with the hand-spun and hand woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of the textile industry to agriculture (for 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.

Government Initiatives

The Indian government has come up with a number of export promotion policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

(Source: Ministry of Textiles)

Result of Operations:

During the fiscal year 2019-2020, but the losses incurred by the Company was Rs. (92,353)/- and during the previous year profit generated was Rs. 1,86,182/-. Losses after tax for the fiscal year 2019-20 was Rs. (92,353)/- as compared to the previous years profit of Rs. 1,86,182/-

• Gross Revenue stood at Rs. 31,50,089/- for fiscal year 2019-2020

• Loss Before Taxes of fiscal year 2019-2020 was Rs. (92,353)/-

• Loss After Taxes of fiscal year 2019-2020was Rs. (92,353)/-

• Basic Earnings per share for fiscal 2019-2020 was Rs. (0.09) per share.

Opportunities And Threat

The growth of the Company is subject to opportunities and threats as are applicable to the industry from time to time.

Risks and Concerns

Risk is an inherent part of any business. There are various types of risks, which threat the existence of a company like Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Interest Rate Risk, Strategic Risk, Regulation Risk etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.

Internal Control System & Adequacy

Internal Control Systems has been designed to provide reasonable assurance that assets are safeguarded, transactions are executed in accordances with managements authorization and properly recorded and accounting records are adequate for preparation of financial statements and other financial information. Internal check is conducted on a periodical basis to ascertain the adequacy and effectiveness of internal control systems

Human Resources

The Company continues to lay emphasis on developing and facilitating optimum human performance. Performance management was the key word for the Company this year.

Details of significant changes

S.NO. PARTCULARS 2019 2020 CHANGE MORE THAN 25%
1 Debtors Turnover 2.54 - NA
2 Inventory Turnover 65.02 - YES
3 Interest Coverage Ratio - - -
4 Current Ratio 7.87 - NA
5 Debt Equity Ratio - - -
6 Operating Profit Margin (%) -2.93 7.21 NA
7 Net Profit Margin (%) -2.93 7.21 NA
8 Return on Net Worth -0.29 0.44 NA

Disclosure Of Accounting Treatment

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (IND AS) 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.

Disclaimer

Statements in the management discussion and analysis report describing the Companys outlook may differ from the actual situation. Important factors that would make a difference to the Companys operations include market factors, government regulations, and developments within the country and abroad. We are under no obligation to publicly amend, modify or revise any forward looking statement on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.