rotographics india ltd Management discussions

Statements in the Directors Report & Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Companys operations include raw material availability and its prices, cyclical demand and pricing in the Companys principle markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business and other ancillary factors.

Overall Review

The Textile Industry in India is one of the oldest industry and the second largest employment provider in Indian economy dating back several centuries. Today it is extremely varied, with the hand-spun and hand-woven Textiles Sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. Also the Government recognized the importance of the Textile Industry in India and has come up with a number of export promotion policies. The future for the Textile Industry in India looks promising, held up by both strong domestic consumption as well as export demand.

Outlook

A couple of major issues have impacted the countrys textile and clothing sector in the past years. Indian Market Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and export earnings of the country. India is the largest producer of cotton & jute in the world.

Indias textile sector has the second-largest employment, employing more than 30 million workers. It has the potential to double this employment in the next four years as per the vision document (for 2024-2025). It is a sector, which provides livelihood to millions of households. It is also a storehouse of traditional skills, heritage, and a carrier of heritage and culture. The various policy documents of the Government have also highlighted the importance of textile sector with regard to generating formal and productive jobs, having potential for broader social transformation and generating exports and growth. This is also a sector, which is undergoing a huge churn due to automation, digitization and the relentless rise of e-commerce. All these developments may completely change the face of this industry.

The textile industry has been facing exceptionally challenging conditions since the past two years due to the restrictions imposed because of the Covid-19 pandemic. India has also been very badly hit in FY 2021-2022 and textile industry was worst hit particularly the first half. The first quarter of 2021 -2022 was also badly hit with the Delta variant. Currently the biggest threat is the enormous increase in cotton prices leading to high finished good prices. Consumers are therefore shifting their focus from cotton to man-made fibers. Further, increase in prices of other commodities such as coal, dyes and chemicals are also making the industry non-competitive. Overall, there was firefighting throughout the year with lot of uncertainties and fluctuations and the year finally closed above planned turnover but with squeezed margins.

Opportunities

The outlook for the textile industry in India is quite optimistic. It is expected that the textile industry will continue to grow at an impressive rate.

The inherent strengths of the textile industry have seen it through rough days and hard times. There have been many periods of adversity, when growth charts dipped and the future appeared bleak. But like the phoenix, the textile industry has risen each time from the ashes. With a tremendous growth in the economy along with Government support, the Indian economy is expected to overtake Japan to be the 3^rd largest economy by 2028.

Human Resources

The company is taking various initiatives to increase human resources for better productivity. To save on costs,

the company is appointing non-experienced staff and taking initiatives for internal training and development of skills. This will help in enhancing their emotional and intellectual engagement with the company.

Risk and Concerns

Business is exposed to external and internal risks. Some risks can be predicted and minimized with careful planning and implementing the measures to mitigate them, while some risks cannot be insured against.

Your company has been facing many risks including risk to run business due to shortage of working capital. The tight fund situation may affect companys plans to enlarge its business activities. Due to tight liquidity position, we are not able to lay hands on talented people in the industry.Your company is fully devoted towards mitigating and reducing its impact on the company.

Internal Control Systems

Internal Controls in the Company have been designed to further the interest of all its stakeholders by providing an environment which is facilitative to conduct its operations. In doing so, the Companys Internal Control environment has evolved over a decade to take care of, inter alia, financial and operational risks. In-house independent Internal Audit team acts as a pillar to support the control objectives.

The Company also has a well-functioning Whistle Blower Policy in place to report any misdoing. Based on managements assessment and testing of controls, it is concluded that the Company has proper internal financial controls which are considered adequate and operating effectively.

CAUTIONARY STATEMENT

Statement in Management Discussion and Analysis may be forward looking within the meaning of applicable securities laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook. The Company assumes no responsibilities in respect of the forward looking statements herein, which may undergo changes in future on the basis of subsequent developments, information or events.

By order of the Board of Directors For Rotographics (India) Limited

Place: New Delhi Date: 02.09.2023

Naresh Kumar Bansal Chairman DIN:00681525