haryana texprints overseas ltd Management discussions

The Business of the company is processing cotton and man-made Fabric for Exporters on Job Work basis as well as for own Fabric.

a) Industry structure and Development

India is one of the largest producers of Textiles. Availability of raw materials e.g. cotton etc. and the skilled workforce have made the country a sourcing hub. It is the second largest exporter of Textile and clothing in the world. India accounts for 63 per cent of the market share of textiles and garments.

Indian textile industry is one of the key sectors of the economy in terms of contribution to the economic activity, employment generation, external trade and foreign exchange earnings. In value terms, the industry constitutes about 14 per cent of the manufacturing sector, 5 percent of the GDP and 12 per cent of India’s total export earnings. It generated direct and indirect employment for 105 million people, 2nd largest after agriculture.

b) Industry structure and Development

Due to quota free system International Textile Markets are now more competitive in terms of Quality & prices. Although the Quota free system brings unlimited opportunities to Indian Textile Industry but also pose threat of stiff competition with Major Textile Exporting Countries like China and other South East Asian Countries. However, the Indian Textile Industry is taking appropriate steps towards modernization and to meet rising costs by effective cost reduction on all fronts to maintain cost competitiveness in domestic and overseas Markets. The textile Industry is high on the agenda of the Government of India for proactive return. Several initiatives have been undertaken to support this industry in the form of Technology Up-gradation Fund Scheme, Merchandise Exports from India Scheme (MEIS) for exports apart from Duty Drawback, Integrated Textile Parks, Integrated Skill Development Scheme, Favorable FDI Policy, among others.

c) Segment wise Performance

The company is engaged in processing cotton and man-made Fabric primarily for Garment Manufacturers. The company has no activity out side India except Export of processed Fabric and Garments produced by the unit.

d) Future Out-Look

Indian Textile processing industry is mainly dependent upon Garment Industry particularly on Export. The economies of U.S and Europe are reviving and due to this Indian Garment Exporters are getting more Export Orders as compared to earlier years. In view of this future out look of Industry seems to be positive.

e) Risks and Concern

In the context of changes, which have taken place due to Quota free system, globalization of Indian Economy, the company is modernizing its plant from time to time in order to produce quality fabric acceptable in the International market and also to reduce cost of production to remain competitive.

f) Internal Control System

The Company maintains adequate Internal Control System, which provides adequate safe guards and proper monitoring of the transactions. The Company’s Internal Auditor who conducts periodic Audits to assure that the Company’s Control System is properly followed and the statutory requirements are complied with. The Company remains committed to maintain effective Internal Control System and procedures designed to provide reasonable assurance for orderly and efficient conduct of Business and security of its assets.

g) Discussion on Financial Performance with respect to operating Performance

The Operating Performance of the Company has been discussed in the Director’s Report under the head operations.

h) Development in human resources and Industrial relation.

The Company’s HRD activities involve total approach to develop the employees with emotional maturity, creativity, Customer focus, Quality Consciousness etc. The Industrial relations throughout the year remained cordial.

i) Cautionary Statement

Statements in the Management Discussion and Analysis describing the Company’s objectives, projections, estimates, expectations or predictions may be "Forward Looking Statement" within the meaning of applicable security laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include economic conditions affecting demand and supply and price Conditions in domestic and Overseas Markets in which the company operates. Changes in Government regulations, tax regimes, economic developments within India and the Countries in which the Company Conducts Business and other incidental factors.