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 (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.
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. 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.
CHALLENGES
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.
COMPLIANCE
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.
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