Eurotex Industries and Exports Ltd Management Discussions

a. Industry Structure & Development:

The Company is having cotton yarn spinning and knitted fabrics manufacturing unit. Textile is the oldest and most important industry with a high employment potential. The textile industry provides jobs for semi-skilled and unskilled labourers, women in particular was.

Eurotex was mills manufacturing and exporting cotton yarn all over the world.

b. Opportunities & Threats:

While opportunities for domestic and export demand is bright, yet presently the conflict in Europe has dampened the Textile business in general.

Indian textile industry is facing threat from other textile exporting countries due to high power cost, cost of raw materials and rigid labour laws of our country.

c. Segment or Product wise Performance:

The Company has only two reportable business segments i.e. ‘Yarn and Real estate development segment in terms of requirement of IND AS-108 and has its operations / assets located in India.

Hence, segment-wise or product-wise performance is given.

d. Outlook, Risks and Concern:

The Board of Directors in their meeting held on 26th March, 2022, has decided for closure of its manufacturing plants situated at Kolhapur under Industrial Disputes Act, 1947, due to continuous grinding halt of operations of plants at Kolhapur since 25th March, 2019 arising out of persistent, unfair and illegal activities of labour including severe inter-union rivalry and disconnection of power.

The Notice of Closure of the manufacturing plants at Kolhapur has been displayed on 30th March, 2022 at the main gate of the Plants and a copy of said Notice has been sent to concerned workers and authorities.

e. Internal Control Systems and their Adequacy:

The Company has got adequate internal control system commensurate with its size of all departments.

f. Financial Performance with respect to Operational Performance:

The financial and operational performances are already elaborated in the Directors Report. g. Key ratios

h. Development in Human Resources / Industrial Relations Front:

The Company continued its endeavor in maintaining peace and harmony at all levels of employment in the Organization in the year under review.

i. Cautionary Statement:

The Statements in the Report may be forward looking within the meaning of applicable laws or regulations. These Statements are made on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in government regulations, Tax Regimes, economic developments within India and the Countries in which the Company conducts business and other incidental Factors.

The Company and its Directors assume no responsibility in respect of the forward-looking statements herein which may undergo changes in the future on the basis of subsequent developments, information or events.