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. Introduction of GST has improved the movement of goods from one market to another market.

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 your 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 and Bangladesh are the major consumer centre of Company’s products.

RISKS AND CONCERNS

The nature and the magnitude of the risks associated with the Company are reviewed and placed before the Board periodically. Various measures for modernization have been introduced to reduce the dependency of labour, which also ensures optimum capacity utilization & quality outputs.

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.

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 178 permanent employees on roll as on 31st March 2019.

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.

By order of the Board of Directors
Date: 9th August, 2019 Hemant B. Vyas Devang Vyas
Place: MUMBAI Managing Director Non-Executive Director
Din no.: 00076289 Din No. 00076459