konark synthetic ltd share price Management discussions

1. Industry structure and developments:

The financial year 2022-23 opened with a firm belief that the pandemic was rapidly on the wane and that India was poised to grow at a fast pace and quickly ascend to the pre-pandemic growth path. The economy was expected to grow at 6.5 to 7% for FY23 despite pandemic recovery and the Russia-Ukraine war. Indias economic growth in fY23 has been principally led by private consumption and capital formation. Global growth has been projected to decline in 2023 and is expected to remain generally subdued in the following years as well.

2. Opportunities and Threats:

Indias textile industry is a major contributor to the countrys economy. The industry is experiencing a shift towards sustainable and ecofriendly practices. Indias textile industry has immense potential in the global market. The government has implemented various initiatives to support the growth of the textile industry such as "Make in India" to promote domestic manufacturing and aims to position India as a global manufacturing hub. Special focus is being given to skill development programs, technological upgradation, and infrastructure development to enhance the industrys competitiveness. Indias textile industry has immense potential in the global market.

The global textile industry is facing a number of challenges, including weakening demand, inflation, and high energy prices, rising labor costs, increasing competition from low-cost countries (global competition), environmental regulations, infrastructural bottlenecks, outdated machinery, limited access to finance, fluctuating raw material prices and changing consumer preferences. Despite its promising outlook, the Indian textile industry faces challenges that need to be addressed for sustained growth. These challenges have led to a

decline in business conditions, order intake, and capacity utilization.

Your Company is repositioning itself to the fast changing situation and expects to come out stronger.

3. Performance Performance overall

The overall performance during the year 2022 - 23 was not satisfactory. The detail of financial performance is given in Directors Report. Business Review

As compared to the earlier years, our Company is setting for the positive growth. Despite competition at global level, there are positive signs for efficient and innovative companies and your company is set to follow the best practices to perform well.

Financial Review

During year under review Companys sales and operations were a bit slow and rigid. Although the Company showed significant growth during the period under review as compared to the previous financial year i.e, 2021-22

The Company is looking forward for change in present scenario and increase consumer confidence and grow market consumption along with other cost cutting measures including better finance control, working capital management, etc.

4. Outlook:

The market is expected to grow on the back of continued growth in domestic demand and high potential growth in exports. The management is confident of better performance from the financial year 2023-24 onwards.

5. Risk and Concerns:

The exercise for evaluating the potential risks for the organization is closely monitored by the management. All identified risks have been classified with respect to their seriousness and probabilities of such risks getting materialized have also been ascertained. In formulating corporate strategies, these risks are duly considered and counter measures are adopted.

Every Sector has both internal & external risk and textile sector is no exceptional to it. Company monitors the external environment & manages the internal environment to mitigate the risks faced by the company.

6. Internal Control System & Adequacy:

The Company has proper and adequate system of internal control to ensure that all the assets are safeguarded from loss, damage or disposition. The Company has independent Audit system to monitor the entire operations and the Audit Committee monitors financial statement to ensure that transactions are adequately authorized and recorded, and that they are reported correctly. The Board of Directors considers internal controls as adequate as it regularly review the findings and recommendations of internal audits.

7. KEY FINANCIAL RATIOS

In accordance with the SEBI (Listing Obligations and Disclosure Requirements 2018)(Amendment) Regulations, 2018, the company is required to give details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector specific financial ratios.

Particulars	F.Y 2022 -23*	F.Y 2021 - 22	Change in Percentage
Debtors Turnover Ratio	3.02	2.00	51.46%
Inventory Turnover Ratio	2.26	2.09	-8.31%
Interest Coverage Ratio	(15.00)	15.05	199.68%
Net Profit Margin	(18.43)	(112)	(1552.12)%
Current Ratio	1.12	1.28	-12.49%
Return on Capital Employed	(29.94)	10.03	398.40%
Return on Networth	(31.74)	(2.67)	(4320.41)%

Note: 1. Above Financial Ratios are based on Standalone Financials of the Company.

8. Human Resource Development:

Your Company gives utmost importance to Human Resource. It considers Human Resource as Human Capital and believes in development of Human Resource. Over the years, your Company has developed an environment, which fosters excellence in performance by empowering its people, who are always on continuous improvement path with an ultimate aim to add value to their intellectual and knowledge resources. The key focus is to attract, retain and develop talent as a resource through rewards mechanism, performance evaluation and harmonious & constructive working climate. During the year 2022-23, the Company had 39 permanent employees on its payroll.

9. Cautionary Statement:

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.

		For and on behalf of the Board of Directors
		For Konark Synthetic Limited
	Anshul Agrawal	Shonit Dalmia
Place: Mumbai	Non Executive Director	Managing Director
Date: 5th September, 2023	(DIN: 02060092)	(DIN: 00059650)