Jattashankar Ind Management Discussions


The Management of JATTASHANKAR INDUSTRIES LIMITED presents its report covering performance and outlook of the Company. The Management accepts responsibility for the integrity and objectivity of the financial statements. However, investors and readers are cautioned that this discussion contains certain forward-looking Statements that involve risk and uncertainties.

GLOBAL Economy

Overview: The global economy is estimated to have grown at a slower 3.2% in 2022, compared to 6% in 2021 (which was on a smaller base of 2020 on account of the pandemic effect). The relatively slow global growth of 2022 was marked by the war between Russia and Ukraine, unprecedented inflation, pandemic-induced slowdown in China, higher interest rates, global liquidity squeeze and quantitative tightening by the US Federal Reserve. The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs. Global inflation was 8.8% in 2022, among the highest in decades. US consumer prices increased about 6.5% in 2022, the highest in four decades. The Federal Reserve raised its benchmark interest rate to its highest in 15 years. The result is that the world ended 2022 concerned that the following year would be slower. Source: World Economic Outlook, IMF

INDIAN TEXTILE INDUSTRY

India?s yarn production was pegged at 341.91 lakh bales in FY 2022-23. India?s yarn exports declined in volume but increased in value during the first half of 2022. India exported 9.69 lakh ton yarn worth $3.472 during the year under review. Bangladesh remained the top buyer with 32.72% share, while Turkey stood second with import of 11.40% of all Indian exports during the period. The Indian home textile industry?s revenue is expected to grow 11-12% in FY 2022-23 mainly because of higher price realizations. Domestic demand for home textiles is expected to grow by 13% fueled by sharp demand recovery in the domestic hospitality industry and continued focus on health and hygiene. Exports account for 60-70% of the Indian home textile industry?s revenue. United States remains the largest market for Indian home textiles contributing for a sizeable 58% of the total exports. Global demand for home textiles is expected to be impacted in the near term by inflationary pressures with big retailers cutting down on inventory and consumers cutting down on discretionary spending. The growth in export demand is expected to moderate to 10% in 2022-23 compared to 25% in 2021- 22 on the account of slower recovery in the international travel and hospitality segments globally. (Source: new indian express.com)

Company?s Business:

Company is mainly engaged in the business of manufacturing and processing of polyesters yarns and the same falls under man-made fibre industry which is a part of textile industry. Processed Yarn are used at engaged in manufacturing of texturised, twisted, high bulk and dyed yarns which are used for shirting?s, suiting upholstery, Elastic tape, Narrow woven fabrics, knitting, labels, curtains, and narrow Woven Elastic Tape etc.

Segment-wise Performance

Company operates only in one segment as the Manufacturer of Polyester Dyed Yarn, High Bulk Yarn, Cotton Dyed Yarn and other fancy Dyed Yarn and performance of same are reflected in financial statement. The Company is also engaged in the business of manufacturing of Woven elastic tapes and these activities of the Company revolve around the main business and as such, there are no separate reportable segments.

Risk and Concern

The Government policies and volatile economic environment have a bearing on the overall performance of the company. Continuous Quality Improvement as well as maintaining a balance between the quality and price of products is the need of hour as there are different demand pattern all over the world.

Insurance

All the insurable interest of your company including inventories, building, plant and machinery and other assets are adequately insured.

ISO CERTIFICATION & Ocko-TexR Certification

Your Company has successfully completed its certification audit for a period of three (3) years for the ISO 9001:2008 Certification from BSCIC Certifications Private Limited, thereby meeting the global quality and international standards. Your company has successfully granted authorization according to Oeko-texR Standard 100 Product Class I Certification from Hohenstein Textile Testing Institute GmnH & Co. KG, thereby meeting the human-ecological requirements of the standards presently established for baby articles.

Information Technology

Company?s Head Office (Mumbai) and factory (Silvassa) is connected with cloud computing system. The head office (Mumbai), Computers softwares are updated with Office 365 for better and fast processing work.

Internal Control Systems and its Adequacy

The Company has a proper and adequate internal control system to ensure that all resources are put to efficient use and protect against unauthorised use or disposition. The Company takes adequate steps to review and monitor working of internal control system. The Audit Committee periodically reviews the internal control system of the Company.

Outlook

Company continues to strive for maximizing its capacity utilization in India by concentrating on new customers and innovating and expanding its Product Mix for its Products

Discussion on Financial Performance with Respect to Operational Performance

During the year under review turnover of the company stands at Rs. 1573.78 Lakhs (P.Y. Rs. 1946.35 Lakhs). Operating Net Profits during the year are Rs 52.51 Lakhs (P.Y. 90.83 Lakhs).

Human Resources Management / Industrial Relation Front

Human Resource is the back-bone of achieving organisation excellence. The Company continuously strives for improvement of its human resources. It regularly organises various programmes to improve productivity and competency of its employees.

Cautionary Statement

Statements Made in this Management Discussion and Analysis may be “forward looking statements” within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of the future events that are subject to risks and uncertainties. Actual future results and trend may differ materially from historical results, depending on variety of factors like changes in economic conditions affecting demand/supply, price conditions in which the Company operates, Government regulations, tax laws and other statutes and incidental factors.

Place: Mumbai

By Oder of the Board

Date: 22/05/2023 For Jattashankar Industries Limited
Sd/- Sd/-
Jattashankar Poddar Sharad Poddar
Managing Director Director
DIN: 00335747 DIN: 00335806