Peeti Securities Ltd Management Discussions.
1. INDUSTRY STRUCTURE AND DEVELOPMENTS:
India is the one of the worlds largest producers of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub. It is the worlds second largest producer of textiles and garments. The Indian textiles industry accounts for about 24 per cent of the worlds spindle capacity and 8 per cent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021, according to a report.
The textiles industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 27 per cent to the countrys foreign exchange inflows. It provides direct employment to over 45 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the Indias economy.
Indian Textile Industry can be divided into several segments, some of which can be listed as below
Jute and Coir
2. OPPORTUNITIES AND THREATS: Opportunities
Replacement of the MFA and full integration of textile industry has resulted in huge opportunities for export.
Increase in consumption pattern across the country along with the rising demand for high quality premium fabrics.
Large and potential domestic and international market.
Promising Export Potential.
Pricing pressure due to opening up of quotas.
Enhanced competition from other countries.
Rising production cost from increasing wages, power and interest cost.
3. SEGMENT -WISE /PRODUCT -WISE:
The company doesnt have any other segment or products and it is mainly involved in trading of textiles and garments.
4. RISKS AND CONCERNS:
Risk is an inherent part of any business. There are various types of risks, that threat the existence of a company like Strategic Risk, Business Risk, Finance Risk, Environment Risk, Personnel Risk, Operational Risk, Reputation Risk, Regulatory Risk, Technology Risk, Political Risk, etc. Your company aims at enhancing and maximizing shareholders value by achieving appropriate trade-off between risk & returns.
5. INDUSTRY OUTLOOK:
Though the company has achieved higher amount of net profit when compared to the last financial year. The board of directors of the company feels that textile sector is fast growing in India, hence due to increasing scope and demand for exports in India, the company at the same parallel will put all the efforts to improve the quality and productive to get more order at competitive rates and try to maintain high quality and productivity in the manufactured goods. Barring unforeseen circumstances the company is confident of achieving better results in the current year.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has proper and adequate systems of internal controls in order to ensure that all assets are safeguarded against loss from unauthorized use or disposition and that all transactions are authorized recorded and reported correctly.
The Board of Directors has been entrusted with the responsibility of reviewing the findings and to investigate and take necessary actions wherever required
7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
During the financial year under review the difficulties which were faced in the last year is not effected much in the financial position of the company and the Company is able to achieve high turnover as Compared to last financial year and due to High turnover and high expenditure the Company has recorded reasonable profits in the current financial year
The Company is hopeful that this fiscal the Company will achieve good turnover as the economy will witness upward trend and good business despite of huge competition in wholesale prices and doing trading with fewer margins to sustain in the market.
8. HUMAN RESOURCES/ INDUSTRIAL RELATIONS:
The Company firmly believes that motivated and empowered employees are the cornerstone of competitive advantage. The Companys employee value proposition is based on a strong focus on employee development, providing a satisfying work environment, performance appraisal and counseling and appropriate em-powerment.
The Company continues to maintain and enjoy a cordial relationship with its employees, providing positive environment to improve efficiency with regular investments in upgrading the knowledge and skills of the employees.
|BY THE ORDER OF THE BOARD OF DIRECTORS|
|PEETI SECURITIES LIMITED|
|Place: Hyderabad||Chairman & Managing Director|
|Date : 14.08.2019||DIN: 00751377|