Manomay Tex India Ltd Management Discussions.
Denim has become a huge part of our everyday life. Started as merely as a jeans fabric, Denim is now ruling the textile industry dealing in all of the major clothing segments. Needless to say, it has almost become synonymous to the lifestyle. Men, women, and children of all ages have grown a liking towards wearing these stylish threads. The Indian Denim industry holds the total installed capacity of 1.5 billion meters. This makes India the second largest textile industry in the world, only behind China. This has set extremely high standards for us to keep our edge in the market and to gain an upper hand.
The year 1978 witnessed the launch of Dhanlaxmi Group aiming to make a mark in the Indian and International textile industry with quality production of Denim. In the span of next 30 years, we came up with a varied set of high-end technology which included installing Auto Looms, and achieved a specialization in Cotton Dhoties. These 40 years we spent on establishing ourselves, resulted in strengthening a strong foundation for marketing our products and eventually reaching to a wider audience. With all the raw material in hand, we ventured ourselves into the marketing area of Denim Textile with our newest weaving plant. The installation of this plant gave our company the head start we wanted to keep the momentum going with a production capacity of 72 Million Meter Per Annum, our company got incorporated in 2009 under the name of M/s Manomay Tex India Private Limited. The year 2012 was our gateway into the Denim textile world when we launched our first Denim plant at Chittorgarh. As the commercial production took an upward turn, it resulted in the introduction of new Denim machinerie . As the production capacity grew larger, we converted ourselves from a Private Limited to Public Limited to serve our customers, better. Equity share of company listed on BSE on MSE Platform in 2017 and company was conquered by installing new auto airjet looms alongside Indigo dyeing machineries. Since then, we have been working towards commercializing our production, and focusing on the expansion. This has been hugely contributed by installing new and advanced technological machineries to constantly upgrade our quality standards. TWO STAR EXPORT HOUSE
We would like to inform you that our company got status of Two Star Export House from Government of India, Ministry of Commerce & Industry, and Directorate General Foreign Trade Authority. This Certificate valid for a period of Five Years Effect from 30.01.2019 to 29.01.2024
TEXPROCIL EXPORT AWARD 2017-18
We would like to inform you that company has won TEXPROCIL Export Award 2017-2018 in the Gold Plaque for the Highest Exports of Denim Fabrics under Category I from The Cotton Textiles Export Promotion Council (TEXPROCIL). The company will take this export award from the Honorable Minister of Textiles, Smt. Smriti Irani, in the function organize by TEXPROCIL at Mumbai on Saturday 03.11.2018
Existence of sufficient productive capacity
Managements with professional and business background
Existence of qualified technical personnel
Large Domestic market
Abundant availability of excellent quality cotton suitable for denim.
Non availability of cost efficient skilled labour
Cost based market set up.
Highly competitive environment with lots of unorganized and organized players, which may lead to price cutting from existing players and new entrants.
Growing domestic and international demands.
Indian market is most reliable and efficient market for US, Europe & UK Buyers
Product mix and product diversification versification. THREATS
Entry of multinational in domestic markets
Demand supply mismatch, resulting into oversupply position in Domestic Market
Stiff competition from Asian countries.
Fast changing fashion and fabric demands. FINANCIAL PERFORMANCE AND ANLYSIS
|(Rs in Lacs)|
|Particulars||Year ended 31.03.2019||Year ended 31.03.2018|
|Sales and other Income||37662.18||28603.80|
|Net Profit for the year||403.00||332.46|
** For detailed explanation, please refer Directors Report.
The Management reviewed the disclosure requirement of segment wise reporting and is of the view that since the Companys products are covered under Textile Industry which is single business segment in terms of AS-17 and therefore separate disclosure on reporting by business segment (product wise) is not required.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has proper system for Internal Control. The system are improved and modified continuously to meet with changes in business conditions, statutory and accounting requirements.
The Audit Committee of Board of Directors actively reviews the adequacy and effectiveness of internal control system and suggests improvements for strengthening them. The Company has strong management Information System, which is an integral part of control mechanism.
The risk management framework of the Company ensures compliance with the requirements SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Framewor establishes risk management across all service areas and functions of the Company, and has in place procedure to inform the top Management about the risk assessment and minimization process. The Company is exposed to risks form market fluctuations of foreign exchange, finance etc.
FOREIGN EXCHANGE RISK
The Company has considerable exposure in foreign currency as the export constitute about 41.58% of the total turnover. In the market determined exchange rate regime and volatility in the forex market affects realization of the Company. The Company has well documented foreign exchange risk policy and currency risks are hedged accordingly through forward contracts.
ENVIRONMENT AND SAFETY
The Company is conscious of the need for environmentally clean and safe operations. The Company policy clean requires the conduct of all operations in such manner so as to ensure safety of all concerned, compliance of statutory and industrial requirements for environment protection and conservation of natural resources to the extent possible.
SOCIAL RESPONSIBILITY ISSUES FOR THE COMPANY (CSR)
As a part of society, the company covers certain thrust areas such as Tree Plantation, School Building Construction, Promoting Education, Environmental Sustainability, Safe Drinking Water and healthcare. For this your company developed a CSR scheme and spends at least 2% of its average profit last three years, every year. This year Rs. 8.38 lacs were spent on promote Education, making available drinking water facilities.
HUMAN RESOURCE AND INDUSTRIAL RELATIONS
Human resource is the most valuable asset on any organization. The Company focuses on the training and development of its people. The company has taken various initiatives to improve and enhance skill of its people. The industrial relations remained cordial in our organization.
Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or prediction may be forward-looking statements within the meaning of applicable laws regulations. Actual results could differ materially from those could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, change hanges in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other incidental factors.
|Place : Bhilwara||FOR AND ON BEHALF OF THE BOARD OF DIRECTORS|
|Date : 04.07.2019|
|KAILASHCHANDRA HIRALA LADDHA||YOGESH LADDHA||PALLAVI LADDHA|
|[DIN : 01880516]||[DIN : 02398508]||[DIN : 06856220]|