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.
The domestic demand for Polyester filament Yarn (PFY) for apparel and non-apparel sector is improving due to healthy growth in GDP and newer application of polyster. This is a prime material for man-made textiles. The raw material for polyester yarn is PTA/
MEG which falls under petrochemical industry. Overall, FY 23-24 is expected to be a tough year for the textile industry. Even some Govt owned mills under NTC are still suffering adverse effects of the pandemic. In the era of ever increasing prices of Oil & Petroleum
Product Prices and Now, major focus will 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. However, since our factory is not in operation, although we are not in the position to take the benefit of the industrial growth, but we shall restart with major cost cutting measures for sustaining in future.
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. Besides with the prioritization of the look east policy, above factory is strategically placed in the north eastern part of the country which will present us with export opportunities.
RISKS AND CONCERNS
Overall negative impact was faced across the industry due to the 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 some time before we could see healthy 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
Although there were some labour issues. However all issues have been amicably settled by way of the Golden handshake scheme accepted by the employees union after signing a joint minutes of meeting in the official conference hall of Minister (Industries and Commerce), Govt of Assam duly signed by Honorable Minister(INC), G.O.A, Honorable MLA Sipajhar (LAC), MD AIDC, Director PBSL, Union Executives of EBEU,, amongst others. All dues payable to the employees under the scheme has been paid against money receipt and the employees has been duly realized from the services.
PTA /MEG /POY are the principals Raw materials for our product whose prices are linked with international market of Oil & Petroleum Product Prices which is of late ever increasing. Besides,apartfromnormalfluctuation, currency fluctuation may also affect the prices. Covid 19 and its after effects is another challenge being faced by the company. The Russia Ukraine conflict is another major challenge on the market. It may be noted that raw materials PTA and MEG are derivative of the petroleum product and has to compete with cotton and other natural textiles and it may not be possible for the industry to pass on the entire cost to the consumer, which may result lower margin/losses for the industry.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The company has been in operation since Covid 19 lock down and has been incurring losses. The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.
The Compliance department of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department headed by the Company Secretary and Compliance officer of the
Company has continued to play a pivotal role in ensuring implementation of compliance functions in accordance with the directives issued by regulators, the Companys Board of Directors and the Companys Compliance Policy. The Audit Committee of the Board reviews the performance of the Compliance Department and the status of compliance with regulatory/internal guidelines on a periodic basis. The Company has complied with all requirements of regulatory authorities. No major penalties/strictures were imposed on the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last three years.