OVERVIEW:
The operating and financial review in this discussion pertains to the management?s perspective on the financial condition as well as the operating performance of the Company for the FY 2024-25. The following discussion of the Company?s financial performance result and operating results should be read in conjunction with the Company?s Financial Statements and Notes thereto and other information included elsewhere in the Annual Report. The Company?s Financial Statements were prepared in compliance with the requirements of the Companies Act, 2013.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company will be able to use much potential available now in the domestic market on which every Multi National Company has set their eyes upon in India. Also, Promoters? rich experience in the said Industry and higher demand of goods in which the company deals in, is the best opportunity for the company to increase its market.
COMPANY?S FINANCIAL PERFORMANCE AND DEVELOPMENTS
The Company adopted series of measures to boost its activities. The company achieved sales of Rs. 4,16,79,300/- in the year 2024-25, marking a significant increase in revenue as compared from that of the previous year?s performance. Further on inclusion of other incomes and expenses, the Company incurred a loss of Rs. 10,39,390 in Financial Year 2024-25.
The Company?s overall performance during the Financial Year 2024-25 was robust resulting in improvement in all operational and financial parameters.
Performance Review:
| Ratios | F.Y 2024-25 | F.Y 2023-24 | Change in % | Reason if change is more than 25% |
| Debtor Turnover Ratio | 99.34 | 2.30 | -55.71 | This year company sold and traded goods. |
| Inventory Turnover Ratio | 0.00 | 0.00 | 0.00 | - |
| Current Ratio | 3.94 | 0.98 | 302.04 | This year company sold goods and proceeds from issue of equity shares. |
| Debt Equity Ratio | 1.94 | -1.13 | -271.74 | This year company issued equity shares thus not negative. |
| Operating Profit Margin (%) | -0.02 | 4.42 | -156.43 | This year we had written of disputed liabilities as well as increase in sales during the year. |
| Net profit Margin (%) | -0.02 | 4.42 | -156.43 | This year we had written of disputed liabilities as well as increase in sales during the year. |
| Return on net worth | -0.04 | -1.54 | -218.13 | This year profit incurred in business. |
OPPORTUNITIES
Due to expansion of the trading base of the company, there will be substantial increase in demand of Company?s products. The Company will be able to use much potential available now in the domestic market on which every Multi National Company has set their eyes upon in India.
THREATS
Due to highly competitive pressure in the market, the Company has to operate in this competitive scenario and acquire a grip in the market to hold its foot firmly and upkeep the brand name. Also, adverse change in the Government Policies may affect the business operations of the Company.
INTERNAL CONTROL SYSTEMS
The Company has professional & adequate internal control systems which ensure protection against misuse or loss of the
Company?s assets. The Company deploys a robust system of internal control that facilitates the accurate and timely compilation of financial statements and management reports; ensures regulatory and statutory compliance and safeguards investor?s interests by ensuring the highest level of governance and periodical communication with investors.
The Companies Act, 2013 requires the Board of Directors and statutory auditors of the Company to comment on sufficiency and effectiveness of internal controls. The Company has appointed internal auditor to conduct internal audit and to ensure that all transactions are correctly authorized and reported. The reports are reviewed by the Audit Committee of the Board.
The Audit Committee also reviews the effectiveness of the Company?s internal control system which provides adequate safeguards & effective monitoring of its transactions.
HUMAN RESOURCE DEVELOPMENT
Human Resource Development is paramount in every organization. The management continues to lay emphasis on identifying, developing the talent in the organization with a view to retain them and further training those who are capable of handling additional responsibilities. This works to increase employee satisfaction. Developing people and harnessing their ideas is high priority for the Company. Total number of employees at the end of 31st March, 2025 stood at 03.
FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCE
Financials of the Company is detailed in the Financial Accounts of the Company forming part of the Annual Report. The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 2013 and IND AS.
This year instead of manufacturing Company traded in socks and commodities and all the revenue from operation is generated from the same
| Year | Revenue from Operations | Revenue Growth% | PAT | EPS |
| 2024-25 | 4,16,79,300 | 186.06 | (10393.90) | (1.56) |
| 2023-24 | 1,45,69,100 | 100.00 | 6438.37 | 1.00 |
SEGMENT WISE PERFORMANCE
The Company is engaged into multi segment reporting during the year under review. The Company?s operation primarily relates to manufacturing and trading of (a) Knitted socks, head band and wrist band (b) trading in yarn (c) trading in commodities.
| Capital Employed (Segment assets- Segment Liabilities) | 2024-25 |
2023-24 |
| (a)Manufacturing/Trading/Jobwork of Socks | 52,48,466 | 7,56,781 |
| (b) Trading of Yarn | - | - |
| (c) Trading of Commodities | (8,91,600) | (8,20,449) |
| (d) other sources | - | - |
| (e) Redeemable Preference Share | (1,36,00,000) | (1,36,00,000) |
| (f) Share application Money | 2,54,46,450 | - |
| Total | 1,79,86,516 | (1,36,63,668) |
OUTLOOK
The Company is exploring various business opportunities but nothing concrete has been derived. Barring unforeseen circumstances directors hope to find some concrete business opportunity to expand the business of the Company.
RISK AND CONCERN
Company at present is exposed to the normal industry risk factor of volatility in interest rate, economic cycle and credit risk. It has not yet decided its future course of activities. The impact of new activity, as and when decided, will be known in the future.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing the Company?s objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of the applicable securities laws and regulations. Actual results could differ materially from those expressed or implied.
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