options chain Management discussions

Industry structure and developments :

The main business activity of the Company relates cotton which is an agro based activity. Therefore understandably the indicator for the performance ofthe companys is timely rains and favorable weather condition coupled with remunerative price fortheir produce that would help encourage the farmers to go in for cotton cultivation. In the last two years thanks to reasonable good rainfall in the cotton growing area of Karnataka the Companys performance has been on encouraging note.

The assistance and guidance extended by the Government has been an encouraging factor for making cotton cultivation reasonably attractive. The demand for quality cotton is another factor that would help the industry realize remunerative price to sustain the growth.

Review of ooeratina performance :

Particulars	31st March 2023	31st March 2022
Gross Revenue from operations	8600.91	7973.21
Other Income	21.82	16.22
Total Revenue	8622.73	7989.43
Expenditure before depreciation and financial cost	8479.58	7948.51
Depreciation	30.15	28.57
Financial cost	98.44	78.48
Profit before tax	14.56	40.92
Provision for Tax - Current Tax	2.27	15.17
Mat Credit Set off	-	-
Deferred tax Charge/ (Income)	-1.07	-1.48
Tax adjustment of earlier years	0.19	0.20
Profit/(Loss) after Tax for the year	13.17	83.35
Earnings per share - Basic & Diluted	0.18	0.36

Due to favorable market conditions the company posted increased net profit for the year 2022-23 as compared to previous year.

Effect of economy on the company

Though there are no visible weaknesses, the textile industry is prone to cyclical recession trend. The going would be good so for the industry gets support / exemption support from Government.

Industry Outlook

The world consumption of cotton is forecast to increase as clothing and textile production continues to expand throughout Asia, with India expected to witness robust increase in production, the outlook remains positive for the country. Global cotton imports are on the rise, lead by China and this would aid the boosting Indias export substantially.

Risk and Concerns

The risk management policy is being renewed periodically by the management and appropriate actions will be taken and also the policy would get reviewed to deal with the development taking place in the industry. With the contemplated efforts the company has achieved a positive operating figure though it was negative in the previous year. Your company was confident of showing better performance in the coming years.

Your company continues to accord highest priority for safety in all of its operations. The processing facilities are subject to regular inspections. A safety Audit is undertaken regularly to ensure safety in the process. Your company has taken adequate insurance cover for all of its plant and machinery as well as for third party liabilities.

Transparency and sharing of Information

Transparency refers to sharing of information in an open manner. Processes, instructions and information are accessible to those concerned with them, and enough information is provided to understand them. Your company believes in total transparency in sharing information about its business operations with all its stakeholders. Your company strives to provide maximum possible information in the management discussion and analysis in the annual report and also through the other means to keep the stakeholders informed about the business performance.

Internal Control Systems

The company has instituted adequate internal control procedure commensurate with the nature of its business and the size of its operations for the smooth conduct of its businesses. The Audit Committee monitors performance of Internal Audit on a periodical basis through review of the audit plans, audit findings and promptness of issue resolution through follow-ups.

Human Resources

The companys industrial relations continued to be harmonious during the year under review. Cautionary Statement

The contents in this Management Discussion andAnalysis describing the Companys objectives, estimates and expectations constitute "forward looking statements" given the existing laws and regulations which the management believes are true to the best of its knowledge at the time of preparation of this report. Actual results could differ materially from those expected or implied. Important factors that could make a difference to your companys operations include economic conditions affecting the demand/supply, price conditions in the domestic and international markets, and changes in government regulations, tax laws, other statutes and other incidental factors.