minaxi textiles ltd share price Management discussions

I. BUSINESS HIGHLIGHTS AND FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE : Turnover :

Minaxi Textiles Limited has achieved a turnover of Rs. 2921.09 in 2022-2023 as against Rs. 3110.63 Lac during the previous year.

Other Income :

Other income mainly consists of Interest Income. Other income for the year amounted to Rs. 4.48 Lac as against Rs. 7.77 Lac during the previous year.

Material Costs :

Purchase costs includes raw material consumption for the year was Rs.2377.66 Lac as against Rs. 1983.25 Lac during the previous year.

Manufacturing Expenses :

Purchase Cost also includes manufacturing expenses mainly comprises Power & Fuel Rs. 232.75 Lac, repairs & maintenance Rs 8.42 Lac as against Rs. 177.58 Lac and Rs. 4.85 Lac respectively during the previous year.

Employee Emoluments :

Employees emoluments is Rs. 100.76 Lac during the year as against Rs. 80.91 Lac during the previous year.

Administrative, Selling and Other Expenses :

Major components of administrative, selling and other expenses include rent, postage, stationary, audit fees, traveling, commission on sales etc. Administrative, selling and other expenses for the year amounted to Rs. 69.28 Lac as against Rs. 67.86 Lac during the previous year. This expenses accounted for 2.37% of sales during the year as against 2.18% during the previous year.

Interest and Finance Charges :

Interest and finance charges during the year come to Rs 216.72 Lac as against Rs. 221.94 Lac during the previous year.

Depreciation :

Depreciation charge for the current year came to Rs. 61.71 Lac as against Rs. 62.83 Lac during the previous year.

Provision for Tax :

Provision made during the year towards current tax was Rs. 0.00 Lac as against rs.2.99 Lcs during the previous years. The Company has also provided Rs. -209.08 Lac towards deferred tax during the year as against Rs. -50.16 Lac during the previous year.

Profit / Loss after Tax :

Profit after tax for the current year is Rs.(-621.28) Lac as against Profit of Rs. (-159.06) Lac occurred during the previous year.

Earnings per Share :

Basic and diluted earnings per share for the current year works out to Rs. (1.26) as against Rs. (0.32) during the previous year.

Financial Condition : Secured loans :

Secured loans stood at Rs. 1789.25 Lac as at 31^st March, 2023 as against Rs. 1880.98 Lac as at 31^st March, 2022.

Inventories :

Major items of inventories as of 31^st March, 2023 are as under :

(Rs in Lac)

Particulars	2022-2023	2021-2022
Raw Materials	524.35	410.67
Stores, spares etc.	14.64	0.78
Finished goods	441.19	1262.87

Debtors :

Debtors as on 31^st March, 2023 amounted to Rs. 1365.65 Lac as against Rs. 1198.60 Lac during the previous year.

Property, Plant & Equipments :

Gross block of the fixed assets at the end of the year was Rs. 2277.43 compared to previous years figure of Rs. 2276.94 Lac.

II. SEGMENT WISE PERFORMANCE :

Your company operates in only one segment i.e. Textiles. Your company has adopted various marketing strategies for sustained growth including increase in number of clients / customers to reduce the dependency on any single client / customer. At the plant level the operational focus has been to reduce overall costs, wastages and to improve machine efficiencies. We have met with good success on these fronts at our Textile Plant and numerous initiatives are planned along similar lines for the coming year. On the Market side, the Company continues expanding its distribution network in the domestic market.

III. AN INDUSTRY OVERVIEW :

The fundamental strength of Indian Textile Industry flows from its strong production base of wide range of fibers/yarns - from natural fibers like cotton, jute, silk and wool to synthetic/manmade fibers like polyester, viscose, nylon and acrylic. Government has been overall supportive in encouraging textile industry in India. Textiles and garment industry has been included in list of 25 sectors of Make in India initiative of the Government of India. With the right Government policies, we believe that the Indian Textile Industry is well poised to benefit from the large opportunity offered in the domestic and export market.

IV. INDUSTRY STRUCTURE AND DEVELOPMENT:

The company deals in suiting products having specialty in fancy suiting fabrics. As a value addition company deals in making of Lycra, a feature in all kind of suiting fabrics like Twill, Broken, Satin. The company have 50 Picanol Rapier Weaving Machines. The company has established with the customers over the years a relationship of trust and based on the true value the company create in customers processes with unique technological product and service offerings.

V. SWOT ANALYSIS OF THE COMPANY : Strength : a. Management depth and ability to manage client relationships b. R & D capabilities to develop efficient and cost effective process at short notice having a State of the Art dedicated R & D Center c. Multi-purpose and multi-production facilities having Quality Certifications d. Enhanced presence in the market through clientele basis

Opportunities and Threats :

The textiles industry is subject to tough competition amongst various segments of manufactures within and outside the country. The threat of competition is comparatively less in the product which your company is manufacturing. The increase in demand from business sector in terms of job works will provide opportunity to your company to increase its sale and capture more market share. Moreover, Indian textiles industry witnessing changes in business dynamics.

VI. RISKS AND CONCERNS :

Your company is mainly focusing on R & D and manpower and the intelligence. Apart from the risk on account of interest rate and regulatory changes, business of the company are exposed to certain operating business risks, which is mitigated by regular monitoring and corrective actions. The company has taken necessary measures to safe guard its assets and interest etc.

VII. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY :

The company has proper and adequate system of internal controls commensurate with its size and nature of operations to provide reasonable assurance that all assets are safeguarded, transactions are authorized, recorded and reported properly and to monitor internal business process, financial reporting an compliance with applicable laws. The internal control system has been designed so as to ensure that the financial and other records are reliable and reflects a true and fair view of the state of the Companys business. A qualified and independent committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening them.

VIII. INDUSTRIAL RELATIONS AND HUMAN RESOURCE MANAGEMENT :

The Company believes that human resource is the most important assets of the organization. It is not shown in the corporate balance sheet, but influences appreciably the growth, progress, profits and the shareholders values. During the year, your company continued its efforts aimed at improving the HR policies and processes to enhance its performance. The vision and mission of the company is to create culture and value system and behavioral skills to insure achievement of its short and long term objectives. The company has employed 24 persons by March, 2023.

Cautionary Statement :

Statement made in the Management Discussion and Analysis describing the companys objectives, projections, estimates, expectations may be "Forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand supply and price conditions in the markets in which the company operates, changes in the government regulations, tax laws and other statutes and other incidental factors.

Stakeholder Engagement Framework :

Company strives to create value for all stakeholders and aspires to understand and act upon material matters for its business, stakeholders, and society. Stakeholder engagement also helps to manage risks and opportunities in business operations.

For, Minaxi Textiles Limited
Dineshkumar P. Patel	Kiritkumar S. Patel
Managing Director	Chairperson
DIN : 02268757	DIN : 00372855