Today's Top Gainer
Note:Top Gainer - Nifty 50 More
The Company is in the business of manufacturing and trading textile products. During the year under consideration company did not carried on business and is in the process of diversification and identification of new business vertical to venture. The key issues of the Management Discussion and Analysis are given below.
The Indian Textile Industry is one of the Leading Textile Industries in the World. The textiles and apparels sector is a major contributor to the Indian Economy in terms of Gross Domestic Product (GDP), industrial production and the countrys total export earnings. India earns about 27 per cent of its total foreign exchange through textile exports. Besides, the Indian Textile Industry contributes 16 per cent of the total industrial production of the Country. This sector provides employment to over 37 million people and it is expected that the textile industry will generate new jobs during the ensuing years.
The industry went through a challenging financial year 2013, with the global meltdown ravaging economies. The collapse in consumer sentiments, weak exports, noteworthy drop in discretionary spending in textiles / apparels and down trading by the consumers put immense pressure on both the top-line and the bottom-line of textile companies.
The operations of the company was stalled for last few years. Presently the management of the Company is exploring and identifying new business verticals to start with.
a. Segment wise performance
The business of the Company falls under a single segment.
b. Internal control system
Internal audit and other controls have been found to be adequate. These are reviewed periodically by the Audit Committee and found the performance satisfactory.
The Indian textile industry has inherent strengths in terms of rich legacy of textile production, strong multi-fiber raw material base, large and expanding production capacities, very low import intensity, vast pool of skilled workers and technical and managerial personnel, flexible production systems, large and expanding domestic market, dynamic and vibrant entrepreneurship, etc. However, these strengths have been diluted to a great extent due to severe disadvantages suffered by the industry in certain other areas affecting its productivity, quality and cost competitiveness. Such factors are technological obsolescence, structural anomalies, poor productivity of labour and machine, lopsided fiscal policies, multiplicity of taxes and levies, high cost of capital, redundant and outdated controls/regulations, restrictive labour and industrial laws, lack of aggressive marketing, poor perception of Indian products abroad, procedural problems in exporting, poor infrastructure relating to transport, communication and banking, high power tariff, etc.
Overall performance of the textile industry is dull and the company is diversifying itself into other business areas and to explore international markets.
Internal control systems and their adequacy
The Managing Director / Whole Time Director certification provided in the report discusses the adequacy of our internal control systems and procedures.
Human Resource Development
The most important asset of the company is its Human Resources.
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectation may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.