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INDUSTRY STRUCTURE AND DEVELOPMENTS

The fashion industry witnessed robust demand and consistent profitability in the first half of CY 2021-22, registering strong revenue growth of 13%. The industry is expected to be valued at US$106bn by 2026, as per recent estimates. Non-luxury fashion also saw 11% top-line growth in the first half of CY 2021-22 compared to the same period in CY 2020-21. The industry, however, had to grapple with global headwinds in the form of rising geopolitical tension, persistently high commodity prices, and deteriorating consumer sentiment. Notwithstanding the global economic crisis, a large portion of the industry is approaching this difficult phase on a sound footing, having made significant progress in CY 2020-21 and the first half of CY 2020-22. According to McKinsey Fashion Growth Predictions, 2023, luxury sales are expected to increase by 5 to 10% in CY 2022-23, while the rest of the sector is expected to grow by a negative 2 to positive 3%. Nonetheless, the intellectual frameworks that formerly differentiated the fashion business are expected to reappear. In order to adapt to changing consumer behavior and manage inflation, apparel brands and retailers may need to implement various strategies. This includes restructuring their pricing, collections, and supply chain to reach a larger audience. An important aspect of this transformation will be the utilization of digital marketing, which will play a significant role in creating brand awareness and fostering stronger connections with the target audience. (Source: The State of Fashion 2023, McKinsey & Company) The government and the Reserve Bank of Indias emphasis on prudent fiscal and monetary policies, proactive vaccination coverage for Covid-19 and sustained capital expenditure restored momentum in the Indian economy. Inflation, however, continues to be a major concern for India. The RBI has projected headline inflation at 6.8% in the financial year (FY) 2022-23, but it is not high enough to deter private consumption. The above has put a lot of pressure on Textile industry in India which was already facing a lot of challenges due to delays in receiving the payments as well as facing huge liquidity crunch and uncertainty pertaining to future orders.

FINANCIAL PERFORMANCE (in )

Particulars F.Y. 2022-23 F.Y. 2021-22
Revenue from Operations 17376.62 2260.00
Other Income 43254.10 4822.40
Total Income 60630.72 7082.40
Operating Expenditure before Finance Cost, Depreciation and Amortization 55076.67 6785.36
Earnings before Finance Cost, Depreciation and Amortization 5554.05 297.04
Less: Finance Cost 5.01 2.06
Depreciation and Amortization Expenses 0.00 0.00</td>

Profit/(Loss) before Tax

5549.04 294.98
Less: Tax Expense 1444.40 74.00

Profit/(Loss) after Tax (PAT)

4104.64 220.98

REVIEW OF PERFORMANCE

In the financial year 2022-23, the Company earned Rs. 17376.62 Lacs from revenue from operations compared to Rs. 2260.00 Lacs to that of previous financial year 2021-22. The Company has earned profit after tax of Rs. 4104.64 Lacs during the financial year 2022-23 as compared to loss of Rs. 220.98 Lacs in the financial year 2021-22. The Board of Directors expects a growth in the Revenue from Operations and ultimately an increase in the Net Profit over the upcoming Financial Years.

OPPORTUNITIES

Going ahead, there could be a positive side for textile business as festival season will start from mid-3rd Quarter till end of March, which majorly includes Diwali, Christmas and Holi. Further from November, 2022 to March, 2023, marriages will be in quantum so all these festivals and marriages will increase the demand in textile fabrics.

THREATS

Future uncertain Factors Consumers constant changing Taste and Preferences Competition

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an efficient system of internal controls for achieving the following business objectives of the Company: Efficiency of operations Protection of resources Accuracy and promptness of financial reporting Compliance with various laws and regulations Compliance with the laid down policies and procedures

HUMAN RERSOURCE

Equipping the Company with an engaged and productive workforce is essential to our success. We look for commitment, skills and innovative approach in people. In assessing capability, we consider technical skills and knowledge that have been acquired through experience and practice, along with mental processing ability, social process skills and their application. We continue to invest in developing a pipeline of future talent and nurture them. As part of this process, we provide development and training opportunities to our workforce, which motivates and encourages them to grow in their work. Total 4 employees were employed in the Company. The Company has been maintaining cordial and healthy Industrial Relations, which has helped to a great extent in achieving the upper growth.

CAUTIONARY STATEMENT

Statements in this Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. These statements are subject to certain risks and uncertainties. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results may be different from those expressed or implied since the Companys operations are affected by many external and internal factors, which are beyond the control of the management. Hence the Company assumes no responsibility in respect of forward-looking statements that may be amended or modified in future on the basis of subsequent developments, information or events.