Nutech Global Ltd Management Discussions

The Management of NUTECH GLOBAL LIMITED present its analysis report covering performance and outlook of the Company. The report has been prepared in compliance as laid down in the Regulation 34 of the SEBI {Listing Obligations and Disclosure Requlrements)Regulatlon8_l2015.The management accepts responsibility for the Integrity and objectivity of the financial statement However, investors and readers are cautioned that this discussion contains certain forward-looking statements that involve risk and uncertainties.

INDIAN ECONOMIC OVERVIEW

The Textile Industry is a vital sector of the Indian economy with a rich history dating back centuries. Itis one of the major contributors to Indias Gross Domestic Product (GDP) and also one of the largest employers In India. The Indian textile Industry Is diverse, encompassing a wide range of textiles, including Man-made fibers (MMF). The Textile Industry is a vital sectorofthe Indian economy with a rich history dati rrg back centuries. H is one of the major contributors to India’s Gross Domestic Product(GDP) and also one of the largest employers In India. The Indian textile Industry Is diverse, encompassing a wide range of textiles, Including man-made fibers (MMF)Despits the challenging global environment, the Indian economy with its strong fundamentals and massive demographic strengths seems enroute to outpace other large economies.

INDIAN TEXTILE INDU8TRY

The Textile Industry is one of the oldest Industry in the country and plays an important role in the countrys economy in terms of Industrial Production, Employment and foreign exchange earnings. The Textile Industry has achieved a good growth in last two decades in terms of Installed spilndles and yam production. This could happen due to buoyant domestic and International demand, conducive Government Policies. This industry provides indirect employment to large number of workforce and also helps to develop many related ancillaries which generates further employment. It Is the second largest employment provider after the agricultural sector. India Is the second largest textile exporter and the fifth largest in apparel exports globally, with a share of 6% and 4% respectively. Exports contributes major revenue to the exchequer and is expected to increase to $300 billion by 2024-25 resulting in tripling the Indian market share from 5% to 15%. The textiles sector supported by the government’s structural and productivity-related policy Interventions and fueled by a rising domestic demand looks well poised to prosper exponentially.

OUTLOOK

The government of India has Initiated various policies to support textile sector growth tor long term horizon. Demand In Textiles segment will vary by market. While domestic markets are expected to improve, US volumes may see modest growth or remain flat Things will change tor better In case India Is able to sign any free trade agreement with any of the key geographies. It Is hoped that textile Industry may perform better in the years to come, provided the prices of raw material are stable. These are favorable indicators tor the reasonable growth of textile industry in thecountry. The company is making all efforts to explore new markets apart from current markets.

OUR BUSINESS OVERVIEW:

The Company has a production of 3.6 million meters of quality fabric per year and a fabric range that diversifies into varied products such as Suiting, Shirting, Ready-Made Garments, Dress Material (Uniform), Home Furnishing and Its recent addition of COVID-19 products. However, competition in the industry is continuously increasing, and the future tor the industry looks promising, by strong domestic consumption as well as export demand.

OPERATIONAL REVIEW:

Please rotor to the paragraph underthe heading ‘Financial Results and Operational Review* In the main Directors’ Report. SEGMENTWISE PERFORMANCE:

The Management reviewed the disclosure requirement of Segment wise reporting and is of the view that since the company’s products are covered under Textile Industry which is single business segment in terms ofAS-17 and therefore separate disclosure on reporting by business segment Is not required.

RISKS MANAGEMENT

The risk management framework of the company ensures compliance with the requirements of the Companies Act, 2013. The Company Is exposed to risks from competitions, Interest rates, market fluctuations of foreign exchange, compliance risk, raw material price risks and people risk. It has institutionalized the procedure for identifying, minimizing and mitigating risks and the same are reviewed periodically. Your Company has identified the following aspects as the major risks for its operations:

1.COMPETITIVE RISK:

The threats to the Companys product include severe competition both in domestic and international markets leading to pricing pressures of finished goods, inflation, foreign exchange fluctuation, volatility in input cost, cotton crop, interest rates, power cost etc. Government Policies also play major role In the growth of the Industry. Online trades and tost fashions are the biggest competitive risk In present scenario. Investments in the industries have started picking up with no barriers torentry of new players. Your Company continues to focus on Increasing Its market share and focusing more on Quality, Cost and Timely delivery that help create differentiation and provide optimum service to its customers to expose competition risk.

2. FINANCIAL(FUNDING RISK):

Any Increase In interest rate can affect the finance cost The Companys policy is to borrow long-term borrowing in Indian Rupee to avoid any rate variation risks. The Company has adopted a prudent and conservative risk mitigation strategy to minimize Interest costs.

3. FOREIGN EXCHANGE RISK:

Foreign exchange risks are quantified by identifying contractually committed future currency transactions. The Companys policy is to hedge all long-term foreign exchange riskas well as shortterm exposures within the defined parameters.

4. COMPLIANCE:

The Company is exposed to risks attached to various statutes and regulations including the Competitions Act The Company is regularly monitoring and reviews the changes In regulatory framework and also monitoring Its compliance mechanism so as to ensure that instances of non-compliance do not occur.

5. RAW MATERIAL PRICE RISK:

The Company Is exposed to the risk of raw material prices of Polyester, Viscose, PA/ blended yam, Cotton Yam. The Company hedges this risk by purchasing the required raw material at the time of booking of sales contracts. Also, this risk is being managed by way of inventory management and forward booking.

6. HUMAN RESOURCES RISK:

Retaining the existing talent pool and attracting new manpower are major risks. The Company hedges this risk by setting benchmark of the best HR practices and canying out necessary improvements to attract and retain the best talent. The Company has initiated various measures such as rollout of strategic talent management system, training and Integration of learning activities.

7. ENVIRONMENT AND SAFETY:

The company is conscious of the need for environmentally clean and safe operations. The Company Policy 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.

INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY:

Your Company has an effective internal control and risk mitigation system, which is constantly assessed and strengthened with new/revlsed standard operating procedures. The main thrust of the Internal audit process Is test and review of controls, Independent appraisal of risks, business processes and benchmarking internal controls with bsst practices.

The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests Improvements to strengthen them. TheAudlt Committee of the Board of Directors, Statutory Auditors and Functional Heads are periodically apprised of the internal audit findings and corrective actions to be taken. Audit plays a key role in providing assurance to the Board of Directors.

FINANCIAL PERFORMANCE WITH RESPECTTO OPERATIONAL PERFORMANCE

This part has been discussed in Boards Report.

HUMAN RESOURCE AND INDUSTRIAL RELATION

The Company takes pride In the commitment, competence and dedication shown by Its employees In all areas of business. The Company is committed to nurturing, enhancing and retaining top talent through superior Learning & Organization Development interventions. Corporate learning and Organization Development is a part of Corporate HR function. It is a critical pillar to support the organization growth and Its sustainability over the long run.

DISCLOSURE OF ACCOUNTING TREATMENT:

In preparation of the financial statements, the Company has followed the Accounting Standards issued by ICAI. The significant accounting policies which are consistently applied are set out in the Annexure to Notes to the Accounts.

CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, estimates ate. may be "Forward Looking Statements’ within the applicable laws and regulations. Actual results may vary from these expressed or implied. Several factors that may affect Companys operations Include Raw material prices, Government policies, cyclical demand and pricing in the Company’s main market and economic developments within India and countries in which the Company conducts its business and several other factors. The Company takes no responsibility for any consequence of decisions made based on such

statements and holds no obligation to update these in the future. Place: Bhilwara	For an don behalf of the Board of Directors Sd1- (RAJEEV MUKHIJA) Managing Director DIN:0050736
Dated: 29.05.2024	Sdl- (SHYAM SUNDER MUKHIJA) Director DIN:01552629