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ANNEXURE-6 TO DIRECTORS REPORT
The report covers the operations and financial performance of the Company and forms part of the Directors Report:
1. INDUSTRY STRUCTURE AND DEVELOPMENT:
During the year there are so many outside factors affect the industry structure such as National Election in the country, crunch of capital in the market, uncertainty of the political future of our country. We aware about the current textile industry condition into the Country. Now a days Government is going to take some initiative steps enhance the level of textile industry and growth of the said sector. In the textile industry we have to change product design, style, according to the need and perception of the consumers. After the passing of times, their views have been change regarding design, style, texture of product and therefore, the industry has also change its product pattern to satisfy the desire of clients. Pradip (the Company) is also focus on the customer satisfaction and updates into the products according the need of clients. In spite of these challenges the Company is managed to have accurate performance which is marginally lower than the previous year.
2. OPPORTUNITIES AND THREATS:
Currently the economy of the Country is moving on slower path and also slower down of economy into the rest of the countries of the world. We accepted new challenges and focus on the growth of the Company. We strongly believe that upcoming years are better for the Company as compare to the current situation. We have concentrated also on overseas market alongwith local market of the Country.
3. SEGMENT WISE PERFORMANCE:
The company is engaged only in one segment i.e Textile. The product of the Company has been well accepted in the market. The Company is manufacturing wide range of the bed sheet and other linen products with attractive design & finishing. However, it has customer in India as well as Overseas market and therefore, the segment based on geographical location of its customer mentioned as below:
|Particulars||Within India||Outside India||TOTAL|
|Sale/Income From operations||9,630.73||10,210.36||3.61||140.75||9,634.34||10,351.11|
The Company has put thrust on Development of new activities and maintaining the quality of the products and cost cuttings. During past few years, various initiative or creative steps have been taken by the management of the Company for the development of product, technology upgradation, develop skills and expertise of the workers and such other steps to give the positive outcome for bright future of the Company.
5. RISK AND CONCERNS:
Due to volatility into the price of grey cloth the operating expenses are uncertain. It is also difficult for the Company to compete the Companys product into the International market. Beside aforementioned risk such other factor also affect the productivity of the Company such as technology upgrade, changes into trends into market related to product, obstacle for continuous power supply, discharge of effluent water.
The company has conversant with all these risk factors and they have taken some measure to mitigate the same on continuous basis. The company also focuses on its commitment towards the protection of environment and increasing awareness amongst all the stakeholders of the Company.
6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company has proper and adequate internal control system to safeguard the assets against loss from unauthorized use or disposition. These systems also ensure that all the transactions are recorded and reported correctly. The Management continuously reviews the internal control system and procedure to ensure efficient conduct of the business.
7. FINANCIAL PERFORMANCE WITH RESOECT TO OPERATIONAL PERFORMANCE:
The key financial data from the Statement of Profit and Loss is set out below:
|Particulars||F Y 2018-19||F Y 2017-18|
|Revenue From Operations||9,634.34||10,362.83|
|Profit/ (Loss) Before Depreciation, Finance Costs, Exceptional Items & Tax||10,100.08||10,749.14|
|Less: Depreciation, Amortization & Impairment Loss||967.40||968.99|
|Profit /loss before Finance Costs, Exceptional items and Tax Expense||9,808.48||11,137.60|
|Less: Finance Cost||859.08||766.28|
|Profit /loss before Exceptional items and Tax Expense||(567.48)||(1,154.74)|
|Add/(less): Exceptional items||-||-|
|Profit (Loss) Before Tax||(567.48)||(1,154.74)|
|Profit (Loss) for the period (1)||1,710.85||(1,426.86)|
|Other Comprehensive Income (net of tax) (2)|
|Items that will not be reclassified subsequently to profit or loss||7.58||2.98|
|Items that will be reclassified subsequently to profit or loss||-||-|
|Total Comprehensive income for the year (1+2)||1,718.43||(1,423.88)|
The following table set forth key financial ratios with brief explanation on changes, relevant.
|Interest Coverage Ratio||0.34||(0.51)|
|Debt Equity Ratio||(1.72)||(1.68)|
|Operating Profit Margin (%)||3.03 %||(3.75) %|
|Net Profit Margin (%)||(5.89) %||(11.14) %|
|Return on Net Worth (%)||0.68 %||1.36 %|
8. DEVELOPMENT IN HUMAN RSOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE:
The companys manufacturing activities carried out at Changodar Factory during the entire year. Industrial relations have been conductive and cordial at factory. At the end of the year the total no. 133 employees are on permanent basis and other unskilled contract workers are working at the factory as per the requirement of production department.
The due care is being taken to ensure the good health of the employees in and around the areas of the factory of the Company. All due care is being taken to keep the clean environment in the factory of the Company.