Jattashankar Industries Ltd 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.

Industry Overview:

The global outbreak of COVID-19 during 2020-21 infected nearly 50 million people as of March 2021, posing a major threat to human health. The Indian GDP grew by -7.3% and Nominal GDP figures stood at -3%. The First Quarter of 2021 (Last Quarter of FY 2021) showed a remarkable recovery of 4%.

The year 2020 has been the most challenging year in our lifetimes. What started as a promising year for our industry quickly turned into a difficult one. COVID-19 pandemic brought the entire world to a standstill, equitably affecting markets and supply chains globally.

Consumer purchase of textile and apparel were hit badly due to the global lockdowns and economic recession. The global apparel consumption is estimated to have shrunk by 22% in 2020.

However, 2021 looks brighter given the onset of vaccination drives, growth in e-commerce sales of apparel, and resumption of global supply chains.

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 & Oeko-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

Companys 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 their 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.

Discussion on Financial Performance with Respect to Operational Performance

During the year under review turnover of the company stands at Rs.1,514.07 Lakhs (P.Y. Rs. 1663.85 Lakhs). Operating Net Profits during the year are Rs 58.70 Lakhs (P.Y. 66.10 Lacs).

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.