gokul solutions ltd share price Management discussions

Description of our Business and Operations

Gokul Solutions Limited was established under the Companies Act, 1956 on July 25, 2008 having its registered office in the state of West Bengal.

The Company is prominently engaged in trading and distribution of sarees and other commodities in the textile market. Additionally, the Company has also ventured into embroidery on sarees, cotton and silk cloths. Our Company supplies entire range of sarees and other dress materials and apparels and we use creativity, market intelligence and industry experience to select apparels to suit the dynamic needs of young generations. The Company predominantly caters to Kolkata and nearby markets.

Our Company is prominently engaged in the textile market. A dedicated team keeps a close eye on the consumers preference and change in the fashion and taste of the consumers in textile industry.

Defining fashion and making it a fusion of the traditional attires with a modern look has been our mission. We are playing an important role in the industry by giving a new dimension to fashion and help it escalate.

Sourcing the material

Based on the changing trends in fashion industry, we explore the various options for sourcing the products. Our Company has always maintained a healthy relation with the vendors. The selection of products and vendors is done by our Company based on the quality of products, current fashion trends, cost of the products, and capacity, credibility, quality awareness and experience of vendors.

Our Company also has a dedicated marketing team, which constantly stays in touch with retailers of sarees and other fabric products. The marketing team showcases samples, collects purchase orders and build delivery schedule.


We operate in an industry which faces intense competition from established as well as unorganized players. Our competition depends on several factors which include quality, price and most importantly our ability to meet the changing trends in fashion industry. Defining fashion and making it a fusion of the traditional attires with the modern look provides us edge over our competitors. Our dedicated design and marketing teams help us in maintaining a healthy relationship with vendors and retailers in Kolkata and nearby territories.

Working Capital

Our business requires a substantial amount of working capital. Significant amount of working capital is required to finance the purchase of products and fabric for embroidery unit. In addition to that, our working capital comprises of receivables from our debtors. Our working capital requirements increases just before the festive season get started in order to store more varieties products/clothing.

Our working capital requirements may increase if, in certain contracts, payment terms do not provide for advance payments to us or if payment schedules are less favorable to us.


The Indian textiles industry, currently estimated at around US$ 108 billion, is expected to reach US$ 223 billion by 2021. The industry is the second largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to Indias gross domestic product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).

The Indian textile industry has the potential to reach US$ 500 billion in size according to a study by Wazir Advisors and PCI Xylenes & Polyester. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are implied to increase to US$ 185 billion from approximately US$ 41 billion currently.

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. Textiles exports are estimated to touch US$ 185 billion by the year 2024-25. Currently, India has a share of approximately 5% of the global textile and apparel trade.

The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players into the Indian market. The organised apparel segment is expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over a 10-year period.

Internal Control System and their Adequacy

The Company has a proper and adequate system of internal control commensurate with its size and business operation to ensure timely and accurate financial reporting in accordance with applicable accounting standards and compliance with all applicable regulatory laws and Company policies.

Human Resources

The Company has both skilled and unskilled workers. The Company takes requisite steps to impart training to the unskilled workers based on their individual needs to enhance their performance.


The Companys revenue from operations decreased by 100% to stand at Rs. 0.00. Consequently, the purchases of stock in trade decreased by 100% from the 2020 levels.

Depreciation and amortization expenses stood at Rs 60,378.75 in 2020-21, a fall of 88.44% as compared to previous year on account of purchase of some assets. Employee cost increased by 49.46% to stand at Rs. 12,50,071.00 in F.Y 2020-21.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include significant changes in political and economic environment in India, exchange rate fluctuations, tax laws, litigation, labour relations and interest costs.