Gujarat Toolroom Ltd Management Discussions.

A. Industry structure and developments

The Indian Economy has shown significant resilience amidst the global pandemic and trade shock that began to impact the global economy towards the end of 2019-20 and acquired catastrophic proportions in 2020-21. The cumulative value of overall exports (merchandise & services) during April-March 2020-21 has been estimated at USD 493.19 Billion compared to USD 528.37 Billion during April-March 2019-20, registering a negative growth of 6.66 percent. He added that it reflects a remarkable recovery over the course of the financial year after the huge downturn in April 2020 reflected in decline in merchandise exports by (60.28)% and services exports by (8.92) %.

The overall trade deficit, taking merchandise and services together, for April-March 2020-21 is estimated at 12.74 USD billion as compared to the deficit of 77.76 US Billion in April-March 2019-20. The merchandise trade deficit between 2019-20 and 2020-21 declined from USD 161.35 Billion to 98.56 Billion.

B. Opportunities and Threats


Going ahead, there could be a positive side for textile and other business as festival season will start from mid 3rd Quarter till end of March, which majorly includes Diwali, Christmas and Holi. Further from November21 to March22 marriages will be in quantum so all these festivals and marriages will increase the demand in textile fabrics.


Currently the biggest threat is COVID 19 and its impact. It is expected that overall textile business will be severely affected which would result in various job losses across the value chain. First half of FY 22 was very tough and the second half is expected to give some relief to the business and the society in general and also it is expected that India will be able to control the COVID 19 Pandemic within next 2-3 months.

C. Segment wise or product-wise performance

The Company is operating in only one segment.

D. Outlook

It is estimated that Indias current fiscal year budget points to make a shift towards demand-side stimulus, with an uptick in public investment. In the financial year Indias economic growth is projected at 12.6% by Organization for Economic Co-operation and Development (OECD) which would enable India to retain its earlier tag of the fastest growing large economy in the world. The discretionary fiscal measures announced in India during the budget will add to the overall support. However, the V shaped spike in Covid cases is expected to impact the ‘V shaped recovery projected for the Indian economy.

E. Risks and concerns

Management recognizes the following principal risks that may influence decisions made by investors given their significant impact on business conditions as stated in the securities report, and among matters pertaining to accounting status, consolidated companies financial status and business performance, as well as cash flows. Our risk management system addresses the increasingly complex risks that we face in our day-to-day operations. The risk management system conducts risk analysis of economic and social changes and implements preventive measures that are best suit for the Company.

F. Internal control systems and their adequacy

The Company has adequate internal financial control systems that commensurate with the size and nature of its business. Management has overall responsibility for the Companys control systems to safeguard assets and to ensure reliability of financial records. The Company has due policies and procedures to ensure effective control of its business, including adherence to Companys policies, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of financial information.

Audit Committee reviews all financial statements and ensures adequacy of control systems. The Company has a well defined organization structure, authority levels and internal rules and guidelines for conducting business transactions.

G. Discussion on financial performance with respect to operational performance

The financial performance of the Company for the Financial Year 2020-21 is described in the report of Board of Directors of the Company.

H. Material developments in Human Resources / Industrial Relations front including number of people employed

The cordial employer - employee relationship also continued during the year under the review. The Company has continued to give special attention to human resources.

Registered Office: By the Order of the Board
402, Sheel Complex, Nr. Mithakhali Under Gujarat Toolroom Limited
Bridge, Navrangpura, Ahmedabad 380 009
Sd/- Sd/-
Manish Shah Vishal Shah
Place: Ahmedabad Director Managing Director
Date: 14th August, 2021 DIN: 03060959 DIN: 03279724