Scoobee Day Garments India Ltd Management Discussions

Scoobee Day Garments (India) Limited is primarily involved in the business of Garments and Aluminium/ Galvanized Ironroofing sheet and accessories.

APPAREL MARKET - GLOBAL & INDIAN

1. Global Apparel Market

The global apparel industry is one of the largest consumer-driven industries worldwide, supported by population growth, increasing disposable incomes, urbanisation, changing fashion preferences and the rapid expansion of e- commerce. The global apparel market was estimated at approximately US$1.9 trillion in 2025 and is expected to grow at a CAGR of around 4.1% during 2026-2034. Growth is being supported particularly by casualwear, athleisure, social-media-driven fashion trends and online retail.

The industry is undergoing significant transformation, with consumers increasingly seeking value, convenience, product variety, sustainability and personalised shopping experiences. Digital commerce, social commerce and direct-to-consumer business models have become important channels for apparel brands.

Major trends in the global apparel market

• Growth of e-commerce and digital retail: Online platforms continue to expand the reach of apparel brands and enable consumers to compare products and prices conveniently.

• Athleisure and casualwear: Consumer preference is shifting towards comfortable, versatile and functional clothing.

• Sustainable fashion: Increasing awareness of environmental issues is encouraging brands to use recycled fibres, organic materials, responsible manufacturing and circular business models.

• Fast fashion and shorter product cycles: Brands are increasingly responding rapidly to changing consumer preferences.

• Personalisation and AI: Artificial intelligence and data analytics are increasingly being used for trend forecasting, inventory management, product recommendations and customer engagement.

• Resale and circular fashion: Second-hand apparel, repair, reuse and recycling are becoming increasingly relevant as consumers and regulators focus on sustainability.

• Supply-chain diversification: Geopolitical developments, freight costs and trade policies are encouraging brands to diversify sourcing beyond traditional manufacturing hubs.

Global Apparel Manufacturing & Sourcing

The global apparel supply chain remains concentrated in major manufacturing countries such as China, Bangladesh, Vietnam, India, Turkiye and Pakistan. China continues to benefit from its extensive manufacturing ecosystem, while Bangladesh and Vietnam have strong positions in export-oriented apparel manufacturing.

India has an important competitive advantage because of its large domestic market, availability of cotton and other fibres, skilled workforce and relatively integrated textile value chain. However, Indias share of global apparel exports remains below that of some competing Asian manufacturing economies, indicating considerable scope for expansion.

2. Indian Apparel Market

India has one of the worlds largest textile and apparel industries, supported by a substantial domestic consumer base and an extensive manufacturing ecosystem covering fibre, yarn, fabric, processing and garments.

The Indian textile and apparel sector is economically significant, contributing approximately 2% of Indias GDP and around 11% of manufacturing GVA, while providing employment to more than 45 million people. India is also among the worlds leading textile and garment producers.

The Indian market has two major components:

1. Domestic apparel consumption

2. Export-oriented apparel manufacturing

The domestic market is supported by Indias large population, increasing disposable income, urbanisation, growing middle class and rapid expansion of organised retail and e-commerce.

Key growth drivers in India

Rising disposable income:

Young population:

E-commerce growth:

Urbanisation:

Organised retail:

Growing demand for childrens and babywear:

4. Indian Apparel Export Market

India is a significant global textile and apparel exporter, with exports spread across a large number of international markets.

According to the Ministry of Textiles, Indias textile and apparel exports, including handicrafts, increased from ^2,97,004 crore in FY 2023-24 to ^3,25,339 crore in FY 2025-26, representing a CAGR of approximately 4.7%.

The Ready-Made Garments (RMG) segment remains the largest component of Indias textile and apparel exports.

Segment	FY 2025-26 Exports
Ready-Made Garments	Rs. 1,39,350 crore
Cotton T extiles	Rs. 1,02,427 crore
Man-Made Textiles	Rs. 46,254 crore
Carpets	Rs. 12,887 crore
Jute Products	Rs. 3,381 crore
Silk Products	Rs. 2,262 crore
Wool & Woollen Textiles	Rs. 1,566 crore
Handloom Products	Rs. 1,359 crore

The total value of textile & apparel exports excluding handicrafts was approximately Rs. 3,09,484 crore in FY 2025-26.

More recent data also indicates that during April-February FY 2025-26, Indias total exports of textiles and apparel including handicrafts were approximately US$32.63 billion, with RMG accounting for US$14.53 billion.

5. Indias Competitive Advantages

India has several structural advantages that can support the expansion of its apparel industry:

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• Large domestic consumer market

• Availability of cotton and other raw materials

• Strong textile manufacturing base

• Large and relatively skilled labour pool

• Integrated textile value chain

• Established presence in international markets

• Strong capabilities in cotton garments

• Growing man-made fibre and technical textile capabilities

• Large MSME manufacturing ecosystem

• Increasing investments in modern manufacturing facilities

• Potential benefits from trade agreements and market diversification

India is the worlds largest producer of cotton, which provides a significant raw-material advantage to its textile and apparel industry.

6. Opportunities for Indian Apparel Manufacturers

The outlook for Indian apparel manufacturers remains promising, particularly in the following areas:

Export opportunities

Global brands are increasingly looking to diversify their sourcing bases and reduce excessive dependence on individual countries. This creates opportunities for Indian manufacturers to increase their participation in global supply chains.

Childrens and babywear

This is a particularly attractive segment because consumers increasingly prioritise quality, comfort, safety, durability and brand reputation.

Sustainable apparel

Demand for organic cotton, recycled fibres, environmentally responsible production and traceable supply chains is increasing.

Value-added garments

There is considerable opportunity to move from basic garment manufacturing towards higher-value fashion, functional, technical and specialised apparel.

Private labels and contract manufacturing

Indian manufacturers can benefit from increasing demand from international brands and retailers seeking reliable manufacturing partners.

7. Key Challenges

Despite the positive outlook, the Indian apparel industry faces several challenges:

• Volatility in cotton and other raw-material prices

• Increasing labour and manufacturing costs

• Competition from Bangladesh, Vietnam, China and other Asian countries

• International freight and logistics costs

• Exchange-rate fluctuations

• Geopolitical uncertainties

• Changes in international tariffs and trade policies

• Increasing environmental and sustainability requirements

• Need for technological modernisation and automation

• Shorter fashion cycles and changing consumer preferences

Global apparel companies are also increasingly facing tariff and sourcing uncertainties, making supply-chain resilience and geographic diversification increasingly important.

INTERNAL CONTROL

Internal Control comprises of the plan of organization and all the coordinate methods and measures adopted within a business to safeguard its assets; check the accuracy and reliability of its accounting data and completeness of accounting records; promote operational efficiency; to encourage adherence to the prescribed managerial policies, to assist in achieving the orderly andefficient conduct of business; prevention and detection of fraud and errors and timely preparation of financial statements.

Our Internal Control System is fully equippedwith necessary checks and balances ensuring that the transactions are adequately authorized and reported correctly. The Internal Auditor conducts regular Audits of various departments and Units to ensure thatnecessary controls are in place. The Audit Committee while reviewing the system and the Internal Audit Report, call for comments of Auditors on internal control systems and discuss any related issues with the Auditors and the Management of the company before submission to the Board. The Independent Directors also satisfy themselves on the integrity of financial information and ensure financial controls.

MARKET OPPORTUNITIES - TEXTILE & APPAREL INDUSTRY

Market opportunities are crucial for the consumer goods industry as they represent potential avenues for growth, innovation, market expansion and competitive advantage. Identifying and effectively leveraging these opportunities is essential for expanding market presence, improving profitability, strengthening customer relationships and maintaining competitiveness in a rapidly evolving business environment.

The Indian textile and apparel industry continues to be one of the key pillars of the Indian economy, supported by a large domestic market, an extensive manufacturing ecosystem, skilled manpower and a strong export base. As of 2026, the Indian textile and apparel market is projected to grow at around 10% CAGR and reach approximately US$350 billion by 2030, while the Government has set an ambitious target of US$100 billion in textile and apparel exports by 2030. The sector employs more than 45 million people and remains an important source of employment and export earnings for the country.

The major market opportunities for the Indian textile and apparel industry include:

• Favourable Government Policies and Initiatives: The Government continues to support the sector through initiatives such as the PM MITRA Parks Scheme, Production Linked Incentive (PLI) Scheme for Textiles, National Technical Textiles Mission (NTTM), SAMARTH - Scheme for Capacity Building in Textiles Sector, Textiles Export Promotion Mission and National Fibre Mission. The

Union Budget 2026-27 has continued to provide substantial support to the Ministry of Textiles and allocated funds towards the PLI Scheme for textiles.

• China Plus One Strategy: Global brands and retailers are increasingly diversifying their sourcing and manufacturing bases beyond China. India is well positioned to benefit from this trend due to its integrated textile value chain, availability of raw materials, skilled manpower and expanding manufacturing capabilities. Apparel exporters are expected to benefit from this diversification trend and improving global demand.

• Expansion of Global Market Access: Indias expanding network of Free Trade Agreements and export promotion initiatives is creating opportunities for Indian textile and apparel manufacturers to access new international markets. Recent agreements and negotiations with major economies are expected to improve market access and create opportunities for labour-intensive sectors such as textiles and apparel.

• Growth of Technical Textiles: Technical textiles represent one of the fastest-growing opportunities within the Indian textile sector. Demand is increasing for specialised products used in healthcare, infrastructure, automotive, agriculture, protective applications and other industrial sectors. Indias

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technical textile market is expected to continue expanding significantly, supported by government initiatives, research and product innovation.

• Growth of E-commerce and Organised Retail: Increasing internet penetration, digital payments, social- commerce platforms and e-commerce adoption are expanding the reach of apparel manufacturers beyond traditional retail channels. This provides opportunities for companies to access consumers directly, develop new brands and expand into new geographical markets.

• Sustainable and Value-Added Products: Increasing consumer awareness regarding sustainability is creating opportunities for recycled fibres, environmentally responsible manufacturing, sustainable packaging, traceable supply chains and value-added textile products.

• Skill Development and Technology Adoption: Government-supported skill development programmes such as SAMARTH, together with increasing adoption of automation, artificial intelligence, digital manufacturing, ERP, electronic data interchange and advanced production technologies, provide opportunities to improve productivity, quality, traceability and supply-chain efficiency.

• Growth of Domestic Consumption: Rising disposable income, urbanisation, changing lifestyles, increasing preference for branded products and the rapid growth of e-commerce are expected to support sustained growth in Indias domestic apparel market.

MARKET OPPORTUNITIES - ROOFING SHEETS

Market opportunities in the roofing-sheet industry arise from external developments in construction, infrastructure, housing, industrialisation, climate conditions, energy efficiency and changing customer requirements. Identifying these opportunities enables roofing-sheet manufacturers to diversify their product portfolio, expand into new markets, improve value addition and strengthen their competitive position.

Indias construction and infrastructure sectors continue to provide a favourable demand environment for roofing products. Housing and construction account for approximately 43% of Indias steel consumption, while infrastructure accounts for around 25%. Indias total steel demand is expected to reach approximately 230 million tonnes by FY2031, supported by urbanisation, construction activity and infrastructure development.

These trends provide a strong underlying opportunity for roofing sheets used in residential, commercial, industrial and infrastructure applications.

The key market opportunities for roofing sheets include:

• Growth in Housing and Construction: Continued urbanisation, residential construction, renovation and replacement of existing roofs are expected to support demand for roofing sheets. Government-led housing and infrastructure programmes are also likely to create opportunities for roofing-material manufacturers.

• Infrastructure and Industrial Development: Increasing investments in roads, railways, airports, logistics facilities, warehouses, factories, commercial buildings and other infrastructure are expected to generate demand for durable and cost-effective roofing solutions.

• Climate-Resilient Roofing Products: Increasing instances of heavy rainfall, high temperatures, strong winds and other extreme weather conditions are creating demand for roofing materials offering improved durability, corrosion resistance, weather resistance and longer service life. Manufacturers can leverage this opportunity by developing and marketing roofing products specifically designed for different climatic conditions.

• Energy-Efficient Roofing Solutions: Growing awareness of energy efficiency is creating opportunities for insulated roofing sheets, reflective/cool-roof solutions and products designed to reduce heat transfer and improve indoor thermal comfort. The Bureau of Energy Efficiency notes the significant and growing energy requirements of Indias building sector, strengthening the long-term opportunity for energy- efficient building solutions.

• Roofing Solutions Supporting Solar Energy: The rapid expansion of rooftop solar creates an additional opportunity for roofing-sheet manufacturers to develop products and systems compatible with rooftop solar installations. Under the PM Surya Ghar: Muft Bijli Yojana, rooftop solar adoption has expanded significantly, with approximately 9.57 GW of rooftop solar capacity added by March 2026. The programme targets rooftop solar installations for one crore households, creating a substantial long-term opportunity for the roofing and solar ecosystem.

• Expansion into Emerging and Underserved Markets: There is considerable scope to expand distribution and market penetration in Tier-II and Tier-III cities, rural areas and regions where construction activity and demand for affordable roofing solutions are increasing.

• Product Innovation and Value Addition: Opportunities exist for developing lightweight, durable, corrosion-resistant, aesthetically attractive and application-specific roofing sheets. Colour-coated and specialised roofing solutions can cater to residential, commercial, industrial and agricultural applications.

• Technology-Enabled Sales and Services: Digital platforms, online product catalogues, CRM systems, digital quotation tools, customer support platforms and technology-enabled roof inspection and maintenance services can improve customer engagement, sales efficiency and after-sales service.

• Sustainable Roofing Solutions: Increasing emphasis on sustainable construction and energy-efficient buildings creates opportunities for recyclable, resource-efficient and energy-saving roofing materials. Manufacturers can strengthen their market position by incorporating sustainability into product design, manufacturing and supply-chain practices.

• Government Infrastructure and Development Spending: Continued investment in infrastructure, housing, urban development and logistics is expected to support demand for construction materials, including roofing products. The Governments continued focus on infrastructure capital expenditure and housing development provides a favourable external environment for the roofing-sheet industry.

THREATS

Threats in the roofing industry represent external challenges that may adversely affect a companys operations, profitability, market position and long-term growth. These factors may arise from economic conditions, climatic events, regulatory developments, raw material price volatility, supply-chain disruptions, competitive pressures and changing customer expectations. Identifying and monitoring these threats enables roofing companies to develop appropriate mitigation measures and strengthen operational resilience.

The key threats that roofing companies may face in 2026 include:

• Economic Uncertainty and Reduced Construction Activity: Economic slowdown, inflationary pressures, higher financing costs and reduced consumer or business spending may lead to postponement or cancellation of construction, infrastructure and renovation projects, thereby affecting demand and revenue.

• Extreme Weather and Climate-Related Risks: Heavy rainfall, cyclones, floods, heatwaves and other extreme weather events can damage roofing installations, disrupt manufacturing and transportation activities, and increase warranty, repair and replacement costs.

• Regulatory and Compliance Requirements: Changes in environmental, quality, safety, labour, taxation and building regulations may increase compliance costs and impose additional operational requirements, potentially affecting profitability and project execution.

• Global Supply Chain Disruptions: Geopolitical tensions, transportation constraints, logistics disruptions and shortages of critical raw materials may result in delays in procurement, production and delivery, as well as increased inventory and logistics costs.

• Volatility in Raw Material Prices: Fluctuations in the prices of steel, aluminium, zinc, coatings, chemicals, energy and other key inputs may increase manufacturing costs and place pressure on margins, particularly where price increases cannot be passed on to customers.

• Intensifying Competition: Increasing competition from established manufacturers, regional players, low-cost suppliers and alternative roofing solutions may exert pressure on selling prices, market share and profitability.

• Technological Changes and Alternative Roofing Solutions: Rapid developments in energy-efficient, sustainable, lightweight and technologically advanced roofing systems may require continuous investment in product development and manufacturing capabilities. Failure to adapt to changing technologies and customer preferences may reduce competitiveness.

• Quality, Product Liability and Reputation Risks: Product defects, installation-related issues, customer complaints or negative online reviews may adversely affect brand reputation and customer confidence, potentially resulting in higher warranty costs and loss of business.

• Energy and Transportation Cost Increases: Rising electricity, fuel and transportation costs may increase the overall cost of production and distribution, particularly for businesses operating energyintensive manufacturing facilities or serving geographically dispersed markets.

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• Credit and Liquidity Risks in the Construction Sector: Delays in payments from dealers, contractors, builders and institutional customers may increase receivables and working-capital requirements, particularly during periods of weak construction activity.

• Changing Customer Preferences and Sustainability Expectations: Growing demand for environmentally responsible, energy-efficient and recyclable building materials may require roofing companies to invest in sustainable products, processes and technologies to remain aligned with market expectations.

• Availability of Skilled Labour: Shortages of skilled workers in manufacturing, installation, maintenance and technical functions may affect production efficiency, product quality and timely execution of customer orders.

The Company continues to monitor these external factors closely and remains focused on prudent cost management, efficient supply-chain planning, product quality, customer service, regulatory compliance and operational flexibility to mitigate the potential impact of these threats.

SEGMENT- WISE PERFORMANCE

During the financial year 2025-26, the Roofing Sheet Division contributed revenue of Rs. 2.60 Crores, as compared to Rs. 5.64 Crores in the previous financial year. The Garment Division contributed Rs. 37.60 Crores, compared to Rs. 45.26 Crores in the previous year.

Both divisions continue to operate with the necessary infrastructure, facilities, resources and operational capabilities. The Company remains focused on strengthening these business segments, improving operational efficiency, enhancing market reach and creating sustainable growth opportunities in the coming years.

RISKS

Challenges and Constraints in the Indian Textile Industry - 2026

The Indian textile industry continues to face several structural and operational challenges that may affect its growth and competitiveness. Infrastructural constraints, inadequate logistics facilities, congestion, and relatively long transaction and transportation timelines remain significant impediments to the efficient movement of raw materials and finished products. Strengthening logistics infrastructure, improving connectivity, and adopting technology-driven supply-chain solutions are essential to enhance efficiency and reduce turnaround time.

Another area requiring greater attention is product design, development, research and innovation. Although the Indian textile industry has made considerable progress, investment in product development, design capabilities, advanced manufacturing technologies and Research & Development (R&D) remains comparatively limited. Many textile enterprises, particularly small and medium-sized units, have limited dedicated resources and facilities for innovation and product development. Greater collaboration among industry, research institutions and technology providers, together with increased investment in R&D, will be important for developing value-added, sustainable and globally competitive textile products.

The industry also continues to operate in a highly competitive global environment, with major textile-producing countries such as China, Bangladesh, Vietnam, Turkiye, Italy, Germany and Sri Lanka competing across various segments of the value chain. Maintaining competitiveness will require continuous improvement in product quality, cost efficiency, design, technology adoption, sustainability and delivery capabilities.

Further, increasing input costs and volatility in raw material prices continue to put pressure on the profitability of textile manufacturers. Higher costs of cotton, synthetic fibres, dyes, chemicals, energy, labour, transportation and other inputs can increase the overall cost of production and affect margins. These challenges are particularly significant in an environment of intense domestic and international competition, where the ability to pass on increased costs to customers may be limited.

Going forward, the Indian textile industry will need to focus on improving infrastructure and logistics,

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strengthening R&D and innovation capabilities, adopting modern technologies, enhancing operational efficiency, developing skilled manpower and building resilient supply chains. Addressing these challenges will be critical for sustaining growth, improving global competitiveness and enabling the industry to take advantage of emerging opportunities in the domestic and international markets.

Industry Risk:

The presence of diversified manufacturing facilities across various locations in India and internationally, coupled with the labour - intensive nature of work, pose various health risks to the workforce. These risks may arise from factors such as machinery breakdowns, human error and other related causes. The world economic growth has slowed and accordingly International fashion retailers have reported rise in inventory and pressure on their margins since summer. This is also reflected in the slump in their off take from supplying countries. However, as we are in the basic segment, its impact is expected to be less. It is hoped that with the unstinted support from all the Stakeholders SDGIL would be able to manage such risk.

Disaster Risks:

The Company has a well-designed safety management policy that eliminates / reduces the risk of workplace incidents, injuries, and fatalities through adoption of various well defined safety measures and devices. Its proper implementation and updation enable effective prevention besides equipping the employees to handle any incident that may occur. The properties of the Company are insured against natural risks like fire, earthquakes, etc. with periodical review of adequacy, rates and risks covered.

Financial Risks:

The Company has a well- managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Companys risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

Market Risk

The exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Companys investments are predominantly held in fixed deposits. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

Credit Risk

Credit risk refers to risk that counter partywill default on its contractual obligations resulting in financial loss to the Company Credit risk arises primarily from financial assets such as trade receivables, other balances with banks and other receivables. The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Companysexposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from other balances with banks is limited because thecounter parties are banks with high credit ratings.

Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject to the risk ofexchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risks.

Labour Shortage

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The availability of skilled and adequately trained manpower continues to be an important challenge for Indias labour-intensive textile and apparel industry. The sector requires a workforce with appropriate technical skills, operational expertise, productivity orientation and the ability to adapt to evolving manufacturing technologies. Labour availability can also vary across regions and manufacturing clusters, creating challenges in recruitment, retention and workforce continuity.

Recognising the importance of skilled manpower for the sustained growth and employment potential of the textile sector, the Government of India has continued to support skill development initiatives, including the SAMARTH - Scheme for Capacity Building in Textile Sector, which focuses on demand-driven training, reskilling, upskilling and multi-skilling across various segments of the textile value chain. The Governments 2026-oriented vision also places greater emphasis on creating a future-ready workforce equipped with advanced technological and manufacturing skills.

However, Scoobee Day Garments (India) Limited (SDGIL) has not experienced any significant adverse impact from labour shortages during the year under review. The Companys effective human resource practices, workforce planning and employee management systems have enabled it to maintain adequate manpower and support operational continuity. The Company has also developed the ability to source the required workforce efficiently through its established network and associated manpower agencies.

Wherever temporary shortages or specific manpower requirements arise, the Company addresses them promptly through its associated agencies and recruitment channels. These proactive measures, together with effective workforce management and a focus on productivity, have enabled SDGIL to minimise the impact of labour shortages and maintain smooth manufacturing operations

FINANCIAL PERFORMANCE ANDOPERATIONAL EFFICIENCY

The standalone financial statements of Scoobee Day Garments (India) Limited ("the Company"), comprise the balance sheet as at 31st March 2026, and the statement of Profit and Loss, (statement of changes in equity) and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March, 2026, and profit/loss, (changes in equity) and its cash flows for the year ended on that date.

Key Ratios*

Particulars	FY 2025-26	FY 2024-25
Current Ratio	0.49	0.36
Debt - Equity Ratio	0.25	11.77
Debt Service Coverage Ratio	(0.02)	0.76
Return on Equity Ratio	(11.13)%	47.93%
Inventory turnover ratio	1.76	2.41
Trade Receivables turnover ratio	5.50	10.92
Trade Payables Ratio	4.55	12.17
Net Capital Turnover Ratio	(1.27)	(1.23)
Net Profit Ratio	(17.59%)	4.20%
Return on Capital Employed	(4.52%)	4.04%
Return on Investment	(12.63%)	64.96%

Your Company has constantly trying to increase its sales as well as profitability. The detail of financial and operational performance is provided in the Boards Report.

LONG TERM AND SHORT TERMSTRATERGY

The Company sells its products directly to the customers and its strategy is to work closely with its major customers and align its business operations and investment decisions according to their requirements. The Company will also make continuousefforts to explore other growth opportunities

DEVELOPMENT IN HUMAN RESOURCE /INDUSTRIAL RELATIONS

The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. The Company is giving direct employment to 689 employees. Industrial relation in the units was satisfactory.

CAUTIONARY STATEMENT

Estimates and expectations stated in this Management Discussion and Analysis may be "forward-looking statement" within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and international markets, changes in the Government regulations, tax laws, other statutes and other incidental factors.