omnitex industries india ltd share price Management discussions


Management discussion and analysis report containing the performance and outlook including the future prospects for the Company is presented herewith.

OVERVIEW

During the year, the Company has reduced its loss in comparison to previous year mainly due to decrease in expenditure.

RISKS AND CONCERNS:

The Board of the Company has formed a risk management policy to frame, implement and monitor the risk management plan for the Company. The Board of Directors are responsible for reviewing the risk management plan and ensuring its effectiveness. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. In the opinion of Board the rising costs and changing government policies and regulations are the key risk factors of the company.

OPPORTUNITIES AND THREATS:

The priorities of the industry are changing, concentrating more on re-organization of operations, development of new markets and marketing techniques, giving the organizations vision a global outlook and retaining and building upon customer relationships. Fragmented markets provide many opportunities for company to expand and increase market share. New markets allow company to expand their business and diversify their portfolio of products and services.

Changes to government rules and regulations can negatively affect the company. Politics can increase companys risk factors, because governments can quickly change business rules that negatively affect impact; Volatile companysbusiness.PoliticalRiskhasasignificant costs mean company has to plan for scenarios where costs skyrocket. Cautious planning leads to development delays that can negatively affect the company.

SEGMENT WISE OR PRODUCT-WISE PERFORMANCE:

The company is engaged in business of trading in textiles and there was no other business carried out during the financial year.

OUTLOOK:

The focus for the forthcoming financial year for the Company will be continued delivery in progressing mode and grabbing the opportunities and trying to overcome challenges.

INTERNAL CONTROL AND SYSTEMS

The Company has adequate internal control procedures commensurate with its size and nature of business.

These internal policies ensure efficient use and statutes and reliability as well as promptness of financial reports.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Sales:

Total income from operations was Rs. 34.05 lakhs as against last years figure of Rs. 41.05 lakhs.

Profit / (Loss) before Interest, Depreciation, Taxes and Impairment Loss on Fixed Assets:

The Company has incurred a loss of Rs. 12.69 lakhs, as against last years loss of Rs. 16.20 lakhs.

Financial Charges:

Financial Charges stands at Rs. 0.95 lakh as against Rs. 0.89 lakh in the previous financial year.

Net Profit / (Loss) After Tax:

The Company has incurred loss after tax of Rs. 20.69 lakhs as against Rs. 23.85 lakhs during the previous year.

HUMAN RESOURCES

There are no material developments on the Human Resource Front.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS ALONG WITH DETAILED EXPLANATIONS THEREFOR

Details of significant changes

(25% or more as compared to the immediately previous Financial Year) in key financial ratios in 2022-23

Particulars Year ended 31st March 2023 Year ended 31st March 2022 Variation (%) Increase/ (Decrease) over previous Financial Year
Debtors Turnover Ratio (No of Times) 3.52 2,552.87 99.86
Inventory Turnover Ratio (No of Times) NA NA NA
Interest Coverage Ratio (No of Times) (14.34) (18.30) 21.64
Current Ratio (No of Times) 36.79 3.06 1,102.29
Debt Equity Ratio (No of Times) 0.00 0.04 100.00
Operating Profit Margin (%) 1.47 1.42 3.52
Net Profit Margin (%) (55.49) (53.57) (3.58)

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

The Return on Net Worth for the year was (3.42) % as compared to (4.02)% in the immediate previous financial year.

There is marginal improvement in Return on Net Worth mainly due to decrease expenditure. The situation is expected to further improve in the coming years.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis may be "forward looking statements" and have been issued as required by applicable Securities Laws and Regulations. There are several factors which would be beyond the control of Management and as such, mayaffectthe actual results which could be different from that envisaged.