omkar overseas ltd share price Management discussions


1. INDUSTRY STRUCTURE AND DEVLOPEMENT:

During the period under the review, the Company had been operating in Textile activities i.e. trading of Finished Goods/Fabrics.

The textile sector largely depends on discretionary spending of the consumer and consumer spending was affected during the fiscal year 2021-22 in the rebounding of the pandemic. The industry witnessed significant contraction of demand in both domestic and international markets till the second quarter. However, consumption and production improved during the later half of the year on account of the pent-up demand as economy started to revive.

The size of Indias textile and apparel market recorded USD 108.5 billion in 2015 and is expected to reach USD 226 billion by 2023, growing at a CAGR of 8.7 per cent between 2009 and 2023. India is the second largest producer and exporter of cotton in the world at $6.3 billion, marginally close to China.

The textiles manufacturing business is a pioneer activity in the Indian manufacturing sector and it has a primordial importance in the economic life of the country. Growth in sector depends on consumer spending and there are multiple factors affecting consumer spending like actual and perceived economic condition, disposable income, employment and consumer credit availability. The government has been pushing for indigenous production through ‘Make in India campaign to bring down imports.

2. OPPORTUNITIES AND OUTLOOK:

Your Company expects turn around in its performance in coming years on several initiatives taken by the Company. The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise

3. RISK, CONCERNS AND THREATS:

The Companys main business activity is textile and its related activities which fall under single reportable segmenti.e. ‘Textiles. The Company has majorly focused on quality and production.

4. INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY:

The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The Internal Financial Controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations.

5. Segment wise or product-wise performance:

The Companys main business activity is textile and its related activities which fall under single reportable segmenti.e. ‘Textiles. The Company has majorly focused on quality and production

6. FINANCIAL PERFORMANCE: A. Standalone Financial Performance:

(i) Net Sales and Other Income:

Net Sales and other income for the financial year 2021-2022 & 2022-2023 is Rs. 3508.55 thousand and Rs. 10312.32 thousand respectively.

(ii) Expenditure:

The total expenditure for the financial year 2021-2022 & 2022-2023 is Rs. 4523.37 Thousand to Rs. 47903.45 Thousand respectively.

B. Profit/Loss:

The total loss for the financial year 2021-2022 & 2022-2023 is Rs. 1014.82 Thousand & 37599.60 thousand respectively.

7. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Sr. No. Ratios Is change any significant change compared to last year Justification
1 Debtors Turnover Ratio Yes The ratio is increased due to higher sales.
2 Inventory Turnover Ratio NA NA
3 Interest Coverage Ratio NA NA
4 Current Ratio Yes This ratio has been increased on account to disproportionate decrease in current liabilities compared with current assets.
5 Debt Equity Ratio Yes The ratio is decreased due to reduction in current liabilities
6 Operating Profit Margin No, Since the company has incurred a loss during the previous and current financial year, this ratio is 0
7 Net Profit Margin No, 0% Since the company has incurred a loss during the previous and current financial year, this ratio is 0

8. DEVELOPMENT IN HUMAN RESOURCES:

The Company considers its employees as its main assets. The management believes in the philosophy of the development of the Company with the development of its employees. Proper environment of work, all necessities and their safety is looked after. The well-being of its employees is always a priority to the company. The employees are given proper guidance and training to execute their tasks. Hence, higher degree of work satisfaction is enjoyed by the employees of the company.

9. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Since the company has incurred a loss during the previous and current financial year, this ratio is 0.

10. ENVIRONMENT, HEALTH & SAFETY (EHS)

The Company commits to ethical and sustainable operation in all business activities. Company maintains and implements an Environmental Management System (EMS) for meeting the purpose of organizations policy and objectives regarding environment. The aims of the system is use of processes, practices, techniques, materials, products, services or energy to avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. Adequate Occupational Health & Safety Management System is adopted by the Company for ensuring the conformance to the Occupational Health & Safety Management System, legal & statutory requirements, continual improvement and satisfaction of interested parties (i.e. customers, suppliers, employees and public).

11. CAUTIONARY STATEMENT:

No reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions, predictions etc. may constitute “forward looking statements” contained herein. Certain statements contained in this document may be statements of future expectations, forecasts and other forward-looking statements that are based on management‘s current view and assumptions. Such statements are by their nature subject to significant uncertainties and contingencies and the actual results, performance or events may differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on any forward looking statement.

Date: September 04, 2023
Place: Ahmedabad
For and on behalf of the Board of Directors
Sd/- Sd/-
Parul Joshi Viral Ranpura
Whole Time Director Additional Non-Executive Director
DIN: 06370561 DIN: 07177208