Prag Bosimi Synthetics Ltd Management Discussions.

DISCLAIMER STATEMENT

Certain statements in this report on Management Discussion and Analysis may be forward looking statements and have been issued in terms of the applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however differ materially from those expressed in the statements or implied due to the influence of external and internal factors, which are beyond the control of the Company. The Company assumes no responsibility in respect of forward-looking statements, which may be amended or modified in future on the basis of subsequent developments, information or events.

INDUSTRY OUTLOOK

The domestic demand for polyester filament yarn for apparel and non-apparel sector is on rise due to healthy growth in GDP and newer application of polyster. This is a prime material for textiles. The raw material for polyester yarn is PTA/MEG which falls under petrochemical industry. Overall, FY 21 is expected to be a tough year for the textile industry and major focus shall be on cost cutting measures, improving productivity, reduction in wastage and efforts on taking quality to next level and deriving efficiency to make products further cost competitive.

OPPORTUNITIES

The perceptible shift to manmade fibers in the international textile market is already having a similar effect in the Indian textile markets. With the right government policies for encouraging higher consumption of fabrics made from manmade fibers present an opportunity to our company in the years to come.

PBSL being the only polyester filament yarn spinner and manufacturer of value added yarn in North eastern region, it almost enjoys monopolistic position in entire North Eastern and surround states. This is in addition to steady growth in the conventional uses of polyester. Kolkata, Tamilnadu and Banaras are the major consumer centre of Companys products with Bangladesh being a potential Export market.

Currently the biggest threat is COVID 19 and its impact. It is expected that overall textile business will be severely affected which would result in various job losses across the value chain. First half of FY 21 is expected to be very tough and the second half is expected to give some relief to the business and the society in general if all the countries specially India is able to control the COVID 19 Pandemic. Going ahead, there could be a positive side for textile business as USA and EU customers who will be looking for alternative for China, may move to other countries such as Vietnam, Bangladesh, India, etc. Hence it is expected that demand will increase in textile fabrics for exports, but we need to ensure that we prepare ourselves to take the advantage of the expected business which might drift away from China.

RISKS AND CONCERNS

Overall negative impact is expected across the industry due to current COVID 19 pandemic. A shift towards online business is expected to happen due to the fear & the restrictions to maintain the social distancing. Also, there could be short time recessionary pressure due to job losses and money crunch in the market and it will take a good 6 to 8 months before we could see demand coming back in the Textile industry.

HEALTH, SAFETY AND SECURITY ENVIRONMENT

Our Company has always been adopting all possible safety measures concerning the health and safety of the Workers and staffs at all levels. This has improved the morale among the workers and staffs and also the working environment at large. Further, to prevent the spread of pandemic Covid 19, the Company has taken all precautionary measures required, such as social distancing, use of masks and sanitizers etc., at all its plant as well as at office locations. Your Company is in full compliance of all Government directives issued in this behalf. The Company has always considered safety as one of its key focus areas and strives to make continuous improvement on this front.

HUMAN RESOURCES/INDUSTRIAL RELATIONS

Employer-Employee relations continued to remain cordial during the year at all the units of the Company. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels. Even under the situation of Non availability of skilled manpower, the costs of recruiting, training and deploying trained labour still remains a major constraint to the Company. The Company has 171 permanent employees on roll as on 31st March 2020.

CHALLENGES

PTA/MEG/POY are the principle raw material for our product whose prices are linked with international market thus apart from normal fluctuation due to demand and supply, currency fluctuation may also affect the prices. Currently due to Covid 19 it is very difficult to say that when will the international markets will get open for trade and situation will settle to normal.

By order of the Board of Directors Prag Bosimi Synthetics Limited

Date: 2nd September, 2020 Hemant B. Vyas Rohit P. Doshi
Place: MUMBAI Managing Director Independent Director
Din no.: 00076289 Din No. 00424996