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 textiles. The raw material for polyester yarn is PTA/MEG which falls under petrochemical industry. Overall, FY 22-23 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, we are not in the position to take the benefit of the industrial growth.
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.
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 considerable amount of 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.
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. Thus apart from normal fluctuation due to demand and supply of currency fluctuation may also affect the prices. Currently due to Covid 19 it is very difficult to predict that when will the international markets will get open for trade and situation will settle down to normalcy. Due to Russia Ukraine conflict the petroleum product has been prevailing at a very high rate. However our raw material PTMEG are derivative of the petroleum product which will push import cost high. It may not be possible for the industry to pass on the entire cost to the consumer, which will result lower margin for the industry.
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The provision of the Companies Act, 2013 relating to CSR Initiatives are not applicable to the Company.
The Compliance function of the Company is responsible for independently ensuring that operating and business units comply with regulatory and internal guidelines. The Compliance Department of the Company is 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 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.
Gold/NCD/NBFC/Insurance and NPS
Gold/NCD/NBFC/Insurance and NPS