Eurotex Industries and Exports Ltd Management Discussions.
a) Industry Structure and 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, on a large scale in the country.
Eurotex has a state of art modern spinning mills manufacturing and exporting cotton yarn all over the world.
b) Opportunities and Threats:
In the post quota regime, the Indian textile exporters have got very good opportunity for increasing their export of cotton yarn and value added products. Due to very good demand from domestic export oriented garment manufacturers, the cotton yarn manufacturers have got good opportunities in local markets also.
At the same time the 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 operates primarily in one business segment viz cotton yarn and knitted fabric and has its production facilities and assets located in India. Hence, segment-wise or product-wise performance is not given.
d) Outlook, Risks and Concern:
The Company has invested substantially in modernization and upgradation of its production facilities and the Company is poised to take maximum advantage of demand in quality goods in post quota regime.
The Exchange Rate Fluctuations, Power Cost increase due to increase in oil prices and state grid power rates are the risks and the matters of concern and may adversely affect its profitability.
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) 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.
h) 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.
|Place: Mumbai||Chairman and Managing Director|
|Date : 25th May, 2019|