Omnitex Industries (India) Ltd 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 earned a profit of after tax of Rs. 351.56 Lakhs as against a loss of Rs. 20.69 Lakhs in the previous year. This is mainly on account of one time profit on account of sale of investment property and dividend income. The other comprehensive income stands at Rs. 11,798.36 Lakhs as against Rs. NIL in the previous year which is entirely due to fair valuation of its investment in Strata Geosystems (India) Private Limited. There is no certainty of actual realization of this income as it depends on various factors. There is a marginal reduction in other expenses.

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 potential value of the investments in Strata Geosystems (India) Private Limited will give reasonable resources and opportunities to reward the shareholders and to take the company forward. At the same time any erosion in the potential value is considered as a risk to future possibilities and therefore, the company is continuously monitoring its investment.

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:

During the year the company could unlock partially the value of its investments in Strata Geosystems (India)

Private Limited and Office premises at Tantia Jogani Industrial Premises, Mumbai. This has improved the financials of the company. As and when the full unlocking happens it is expected to improve the financials further.

INTERNAL CONTROL AND SYSTEMS

The Company has adequate internal control procedures commensurate with its size and nature of business. of assets and resources, compliance with policies, Theseinternalpoliciesensure statutes and reliability as well as promptness of financial reports.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Sales:

Total income from operations was Rs. 169.52 Lakhs as against last years figure of Rs. 34.05 Lakhs.

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

The Company has earned a profit of Rs. 153.25 Lakhs, as against last years loss of Rs. 12.69 Lakhs.

Financial Charges:

Financial Charges stands at Rs. Nil as against Rs. 0.95 Lakhs in the previous financial year.

Net Profit / (Loss) After Tax:

The Company has earned a profit after tax of Rs. 351.56 Lakhs as against net loss after tax Rs. 20.69 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 in key financial ratios in 2023-24

(25% or more as compared to the immediately previous Financial Year)

Particulars	Year ended 31st March 2024	Year ended 31st March 2023	Variation (%) Increase/ (Decrease) over previous Financial Year
Debtors Turnover Ratio (No of Times)	7.45	3.52	111.35
Inventory Turnover Ratio (No of Times)	NA	NA	NA
Interest Coverage Ratio (No of Times)	NA	NA	NA
Current Ratio (No of Times)	159.43	36.79	333.38
Debt Equity Ratio (No of Times)	NA	NA	NA
Operating Profit Margin (%)	1.50	1.47	2.04
Net Profit Margin (%)	104.89	(55.49)	289.03

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 5.32 % as compared to (3.77)% in the immediate previous financial year.

Return on Net Worth has improved in view of increase in net profit after tax for the year sale of investment property and receipt of dividend income on shares.

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 resultswhichcouldbedifferentfrom that envisaged.