Ashtasidhhi Industries Ltd Management Discussions

We have also change our object clause and starting doing business of ginners, spinners, weavers, manufacturers etc. of raw fabrics and other fabrics materials during FY 2022-23.

Moreover, Reserve Bank of India has approved the change in name of the company on Certificate of Registration No: 01.00022 from “GUJARAT INVESTA LIMITED” to “ASHTASIDHHI INDUSTRIES LIMITED” with effect from 11^th March 2025.

The financial year 2024-25 Indias textile and apparel exports rose by 6.32 per cent to $36.61 billion in FY25, driven by a 10.03 per cent growth in apparel exports. Textile exports increased 3.61 per cent. March 2025 saw a slight dip in total T&A exports.

Raw cotton imports more than doubled, while man-made and cotton-based product exports saw modest growth. Imports of raw cotton and waste surged by 103.67 per cent to $1,219 million during April March 2025, compared to $599 million in the same period of the previous fiscal. Imports of textile yarn, fabrics, and made-ups rose by 8.69 per cent, rising from $2,278 million to $2,476 million.

Outlook 2025-26:

Trade tension and high levels of policy uncertainty are expected to impact global economic activity. The global growth is projected to drop to 2.8% in 2025 and 3% in 2026 from 3.3% for both the years.

The real GDP of Indian economy is predicted to grow at 6.5 percent in 2024/25 and 2025/26, supported by robust growth in private consumption on the back of sustained macroeconomic and financial stability

The textile and fashion industry plays a crucial role in Indias economy, contributing over 10% of total exports and employing more than 45 million people. With the U.S. recently announcing a new set of tariffs, their potential to impact Indias textile export is significant. However, with Indias market diversification to Europe, the Middle East, and Latin America dependency on US market would be greatly reduced. The U.K. and India are finalizing a Free Trade Agreement (FTA), potentially reducing tariffs on apparel and textile exports.

Indias economy looks on an upward trend. Projections indicate that India will be the worlds third largest economy by 2027, surpassing US$5 trillion in GDP.

The India Home Textile Market size is estimated at USD 9.60 billion in 2024, and is expected to reach USD 15.36 billion by 2029, growing at a CAGR of 9.84% during the forecast period (2024-2029). Technical Textiles is another sector that is receiving a huge push from Govt. of India. National Technical Textile Mission (NTTM) that was launched in 2020 with the objective of increasing penetration level of technical textiles for 5-10% as compared to 30-70% in the developed market.

Indias technical textiles market, which was valued at US $ 29 billion in FY 2024, is expected to grow significantly because of tax cuts for textile machinery and a rise in Basic Customs Duty (BCD) on knitted fabrics in Budget 2025. Approximately 15 per cent of Indias total textile and clothing market is made up of technological textiles, which rank seventh in the world With a “India 2047- Vision and strategic roadmap for technical textiles” the Govt. of India has expressed its ambitious plans and programmes to develop India as one of the leading hubs of Technical Textiles globally and set up a robust manufacturing base in India.

During the year under review, the Company has earned a profit after tax of Rs. 2.75 lakhs, as against a loss after tax of Rs. 38.95 lakhs incurred during the previous financial year 2023 24. The improvement in financial performance is mainly attributable to the Companys successful shift in business operations to the textile sector and enhanced operational efficiency.

The Board of Directors is optimistic about the future growth of the Company and expects further improvement in performance in the current financial year through focused execution of its business strategy.

There was no change in nature of the company during the year under review.

There was no change in name of the company during the year under review.

As the Company has changed its changed the nature of Business in FY 2022-23, so the Company is looking for new opportunities in its new business. There is going to be growth in technical textile and man-made fiber industry in the New Year due to government benefits. This should help India in regaining some global market share. There will be more push towards attaining sustainability and traceability in manufacturing processes as well as in products. More interest is likely in investments in the recycling technologies as well as technologies that will help in saving water and chemicals.

The Company aims to operate within an effective risk management framework to actively manage all the material risks faced by the organization and make it resilient to shocks in a rapidly changing environment. It aims to establish consistent approach in management of risks and strive to reach the efficient frontier of risk and return for the organization and its shareholders. Broad categories of risk faced by the company are Credit Risk, Market Risk, Operational Risk, Cyber Security and Reputation risk. The risk management policies are well defined for various risk categories supplemented by periodic monitoring through the sub committees of the Board.

The Company has designed its internal control system to ensure operational efficiency, protection and conservations of resources, accuracy and promptness in financial reporting and compliances with laws and regulations. Efficient maintenance of accounts is facilitated by the executives and employees of the Company. Thereafter, the same is audited periodically by the Internal Auditors. The scope of internal audit is well defined and is very exhaustive to take care of all crucial functions and business of the Company. Based on their report, steps are taken at regular intervals to further strengthen the existing systems and procedures. Their significant observations are discussed in the Audit Committee Meetings regularly. Besides, as mandated under Companies Act, 2013, the Statutory Auditors have certified as part of their Audit Report, the effectiveness of Internal Financial Control over financial reporting. The Directors have appointed M/s. Kamal M. Shah & Co, Chartered Accountants as the Internal Auditors of the Company for the Financial Year 2024-25.

The Company firmly believes that Human Capital is its most important asset. A series of engagement interventions across identified key themes were undertaken to increase employee morale and the initiatives focused on key aspects such as physical and mental wellness, celebrations, leadership engagement sessions, fitness and sports, and family engagement activities. The Company believes that the human resources are vital in giving the Company a Competitive edge in the current business environment. The Companys philosophy is to provide congenial work environment, performance oriented work culture, knowledge acquisition / dissemination, creativity and responsibility. While selecting the training programme, the Company lays emphasis on development of skill and knowledge of its executives in the new vistas of Finance and Information Technology, besides developing the leadership and managerial skills for the future. The Company continues to run an in-house training program held at regular intervals and aimed at updating their knowledge about issues.

10. ACCOUNTING TREATMENTS

During the under review, all the accounting treatments are done as per the prescribed sections and IND AS applicable to the company.

CAUTIONERY STATEMENT

Statements in the 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 could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include economic conditions affecting demand/supply and prices, conditions in the domestic and overseas markets in which the company operates/ going to operate, changes in government regulations, tax laws and other statutes and other incidental factors.