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.


During the year, the companys has incurred loss due to decrease in other income as well as increase in expenditure. The decrease in other income is partially on account of reduction in rent income. The increase in expenditure in basically on account of increase in compliance costs.

COVID-19 has impacted the business environment during the initial part of FY2020-21.

As of April 1, 2020, work from home was enabled to the employees to work remotely and securely. In spite of the difficult environment the company could improve the business and achieved a topline of Rs. 2.13 Cr as against Rs. 0.40 Cr in the previous year. However, Non-availability of rental income affected the PBT and PAT.


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 that may threaten the existence of the company.


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 companys business. Political Risk has a significant impact; Volatile costs mean company has to plan for scenarios where costs skyrocket. Cautious planning leads to development delays that can negatively affect the company.


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


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.


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


Total income from operations was Rs. 213.67 Lacs as against last years figure of Rs. 40.40 Lacs.

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

The Company has incurred a loss of Rs. 8.95 Lacs, as against last years profit of Rs. 1.64 Lacs.

Financial Charges:

Financial Charges stands at Rs. 0.90 Lacs as against Rs. 0.17 Lacs in the previous financial year.

Net Profit After Tax:

The Company has incurred loss after tax of Rs. 16.72 Lacs as against loss after tax Rs. 6.49 Lacs during the previous year.


There are no material developments on the Human Resource Front.


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, may affect the actual results which couldbe different from that envisaged.