ls industries ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Your Board of Directors is pleased to share with you the "Management Discussion and Analysis Report" for the Financial Year ended March 31, 2023.

INDUSTRY STRUCTURE & DEVELOPMENTS

The Textile Industry plays a pivotal role in strengthening the Country. Over a period of time, textile industry has considerably contributed to GDP, employment generation, foreign exchange reserves of the Country. The Indian textile industry plays a prominent role in the global textile industry.

GLOBAL ECONOMY OVERVIEW

The global economy is displaying signs of a steady recovery despite the significant impact of the conflict between Russia and Ukraine and the Covid-19 pandemic. As economies gradually reopen, supply chain disruptions are diminishing, and the energy and food markets, which were previously affected by the war, are stabilizing. Moreover, many central banks are taking significant and coordinated measures to tighten monetary policy, with the aim of achieving positive results as inflation approaches its target.

However, despite the improved business environment, the advanced economies are expected to face a significant slowdown in growth, with a decline from 2.7% in 2022 to 1.3% in 2023 due to the fragmentation in geoeconomics. Conversely, emerging markets and developing economies exhibit stronger economic prospects than advanced economies, with the average growth rate projected to reach 3.9% in 2023, with a further increase to 4.2% in 2024.

At present, the global trade outlook is facing potential challenges due to renewed bottlenecks in the supply chain and weaker than-expected global demand. Moreover, the intensification of trade protectionism, fragmentation of trade networks, and security concerns regarding supply chains could exacerbate trade challenges, potentially leading to a slowdown in trade growth and increase in supply chain disruptions.

INDIAN ECONOMY OVERVIEW

The Indian economy has successfully returned to its pre-pandemic growth trajectory in 20222023. However, India is currently facing the challenge of addressing inflation, which has been further compounded by the ongoing Russia-Ukraine conflict. Despite these challenges, the advanced estimates of Economic Survey 2023 continue to project India as the fastest- growing major economy, with estimated growth rates of 7.0% in 2022-2023.

Buoyed by its strong fundamentals, India has emerged as a significant force in the global economy, demonstrating remarkable progress over the past decade. It has advanced from being the tenth-largest economy in the world based on exchange rates to now occupying the fifth position. Furthermore, India has also secured its position as the third-largest economy globally in terms of Purchasing Power Parity (PPP). This achievement is attributed to key reforms that have been implemented, such as liberalization, the reduction of bureaucratic hurdles and corruption, investments in infrastructure, and increased accessibility of finance for small and medium-sized enterprises.

FINANCIAL PERFORMANCE OF COMPANY

LS Industries Limited is engaged in the business of producing high-quality fabrics and textiles for various applications, including clothing, home textiles, and industrial use. The company has been able to maintain its position in the market by continuously innovating and investing in state-of-the-art technology and equipment. This has allowed them to stay ahead of the competition and meet the changing demands of customers.

During the financial year 2022-23, the Company achieved a turnover of Rs.44,53,080 as compared to Rs.43,36,800 during the previous year. Thus, the income from operations of the Company has been increased by 2% as compared to last years revenue from operations.

OUTLOOK

The company is taking all efforts to improve the quality of its products to get more orders at competitive rates. We are introducing new products from time to time to cater to consumer need. Further the Company continuously works towards its competitive strength and making customer relationship. Barring unforeseen circumstances, the company is confident of achieving better results in the current year.

OPPORTUNITIES

The Government has launched various support schemes and policies for the textiles industry to enhance its global competitiveness. These schemes focus on export promotion, infrastructure development, and technology upgradation, among other areas. These initiatives aim to provide necessary support to the companies within the textiles industry, while empowering them to enhance their global competitiveness.

THREATS

The textile industry is facing a challenge with the limited availability of raw materials and labour, which has resulted in higher retail prices and reduced consumer demand for clothing. Meeting the demand for these scarce raw materials could also lead to increased costs, further impacting the industry.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has internal control system to ensure that all the activities are monitored and controlled against any misuse or disposition of assets and that all the transactions are authorized, recorded are reported correctly. The Audit Committee of the Board of Directors reviews the adequacy of internal control.

RISKS AND CONCERNS

Risk is an inherent part of any business. There are various types of risks that threaten the existence of a Company like Strategic Risk, Business Risk, Finance Risk, Environment Risk, Personnel Risk, Operational Risk, Reputation Risk, Regulatory Risk, Technology Risk, Political Risk, etc. Your Company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.

HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS

We believe that our employees are the assets of our organization. We are committed to provide opportunities to our employees to re-skill and up-skill themselves, in the face of rapidly evolving technology and increasing automation. Your Company is confident that its human capital will effectively contribute to the long-term value enhancement of the organization. The Company continuously nurtures this environment to keep its employees highly motivated, result oriented and adaptable to the changing business scenario. The Companys human resource policies align closely with the overall business strategy and play an integral role in executing business operations.

	By order of the Board
	For LS Industries Limited
	Jeetendra Kumar Yadav	Rakesh Sethi
	DIN-09184532	DIN-09650924
	Director	Director
Date: 04.09.2023
Place: Nalagarh