Today's Top Gainer
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Industry structure and developments:
The cotton textile industry in India had to contend with major challenges during the year. The impact of the severe economic downturn in the economies of the developed countries was acutely felt in India too. Issues relating to power shortage and shortage of skilled labour continue to affect the textile sector. Excess capacities and significant erosion in margins due to severe competition have also had a negative impacton the profitability of the industry.
Opportunities and threats:
The promoters of your company are planning for entering into retail industries, currently the retail market is lucrative when compared with manufacturing industries and thereby have the hope of recovering from the present financial crisis.
Segment wise performance and Company outlook:
Increase in cost of raw material
No substantial increase in the selling price of finished product (Cotton Yarn)
Regular absenteeism of the workmen
Frequent interruption in the power supply
Increase in the cost of electricity
Non favorable market conditions to the textile industry. Company was unable to run the factory, and the production was stopped from the end of July 2011, and the promoters, requested the Honble Labour Department to grant the permission for closure of the factory. The Honble labour department has granted the permission to close the factory located at Nanjangud vide its order No Ka.Ee 114 LMW 2007 dated 29th November 2011.
PASARI SPINNING MILLS LIMITED was undertaking manufacture of Cotton Yarn at its Unit located at KIADB Industrial Area, Nanjangud, Mysore District with spindle capacity of 17,472.
Risk and Concerns:
General Economic conditions:
Any slowdown in the global and/or Indian economy could adversely affect our business. Textile business in general is sensitive to fluctuations in the economy. The textile sector may be unfavorably affected by changes in global and domestic economies, changes in local market conditions, government policies and Regulations. Since demand for textiles is affected by world is affected by world economic growth, a global recession could lead to a downturn in the Textile Industry.
In addition to economic risks, the Company faces risks from the socio-political environment, internationally as well as within the country and is affected by events like political instability extreme weather conditions and natural calamities etc.,
The Promoters of your Company, taken the permission for closure of the Factory from the Honble labour department, Government of Karnataka, which stopped the further losses of the Company
Internal control systems and their adequacy:
Company has reviewed internal controls and its effectiveness through the internal audit process. Internal audits were undertaken for every operational unit and all major corporate functions under the direction of the Audit committee.
The focus of these reviews are as follows:
Identify weakness and areas of improvement
Safeguarding of tangible and intangible assets
Management of business and operational risks
Compliance with applicable statutes
Compliance with the Pasari "Code Of Conduct"
The Audit Committee of the Board oversees the adequacy of the internal control environment through regular reviews of the audit findings and monitoring implementations of internal audit recommendations through the compliance reports submitted to them.
Discussion on financial performance with respect to operational performance:
The Company could not achieve the targeted results because of Closure of the factory.
Material developments in Human Resources / Industrial Relations front, including number of people employed:
Your Company had not employed workers and staff including the factory and head office.
|By order of the Board, for Pasari Spinning Mills Limited|
|Date: 12th August, 2019||Krishna Kumar Gupta|
|Place: Bangalore||Managing Director|
|Address: A-21 Silver palm, Bldg 3,|
|Vibhuthipura Extn, Marathalli,|