Shekhawati Poly-Yarn Ltd Management Discussions

INTRODUCTION

Management Discussion and Analysis mainly comprises of the statements which inter alia involve predictions and
projections based on perceptions and may, therefore, attract certain risks and uncertainties. It is the sum total of
the Companys expectations, beliefs, estimates and projections which may be forward looking within the meaning
of applicable securities, laws and regulations. The actual result could differ materially from those expressed herein
specifically or impliedly.

The important factors that could make a difference to the Companys operations include availability and cost of raw
material, cyclical demand and pricing in the Companys principal markets, changes in government regulations, tax
regimes, economics developments within India and countries in which the Company conducts business, Indias
Free Trade Agreements with other countries, prevailing exchange rate of INR against other currencies, availability
of skilled and unskilled workforce and other incidental factors. The shareholders are cautioned to use this in
conjunction with the Companys financial statements.

OVERALL REVIEW:

The textile industry plays a significant role in the Indian economy by contributing to over 15% of the countrys total
exports. It is also one of the largest employment generators in India, providing direct and indirect employment to
over 35 million people.The sector has witnessed strong growth in recent years, driven by factors such as increased
domestic and foreign demand, government initiatives, and improved infrastructure. The textile industry is an
important part of the Make in India initiative as it has a huge potential for growth and job creation. The sector is also
an important source of foreign exchange earnings.

During the year under review, the Company was engaged primarily in its job work activities. The performance of the
company was improved mainly due to exception items which is showing gain on settlements of Loans under One
Time Settlement (OTS) by the Assets Reconstruction Company (ARC).

A. Industrial Structure And Development:

The Textile Industry has witnessed steady growth in the recent past. The Indian government has taken various
initiative and steps to enhance textile Industries namely Scheme of Integrated Textile Part (SITP), Production
Linked Incentives (PLI) and 100 % FDI under automatic route to support Textile Industries in the Country.
The Union Ministry of Textiles is more active in developing the textile industry, by constant coordination with
business owners of this sector.

Your Company work hard to meet the competition as well as to enable to maintain long standing business
relationship.

B. Opportunity And Threats:

The economy is expected to improve its performance and the textiles industry is also likely to register good
growth due to growing economy and domestic as well as international market.

The Indian textile industry has its own limitations such as accesses to latest technology and failures to meet
global standards in the highly competitive export market. The changing government policies at the state and
central government levels are also posing major challenges to the textile industry.

OUTLOOK:

The growth of Indian E-Commerce companies provides opportunities for the Indian textile industry in the domestic as
well as international market. We expect the textile industry performance will improve in the next fiscal to encourage
growth and overall demand in the market. The Company is hopeful of improved financial performance in the coming
year and hopes to provide good results in the fourth coming years. There was no export during the year.

C. Risk And Concerns:

Risk taking is intrinsic to business growth. All business organization face risks either from internal operations
or from external environment. The base of any business is a healthy appetite for risk. This is why one of the
greatest and most important challenges for an organization is to define the optimal risk level for its business to
ensure that its activities produce risk adjusted returns.

The risks for the Company is high cost of major input, viz. POY and intense competition in domestic and export
markets due to large scale over capacity.

D. Internal Control System:

The Board has adopted system of internal control to ensuring the orderly and efficient conduct of its business,
including adherence to the Companys Policies, the safeguarding of its assets, the prevention and detection
of fraud and errors, the accuracy and completeness of the accounting records, and the timely preparation
of reliable financial disclosures. The management reviews the control systems and procedures periodically
to upgrade them. Presently the internal control systems are commensurate to the size and operations of the
company.

E. Financial & Operational Performance:

During the year under review, the Company was engaged primarily in its job work activities. The performance
of the company was improved mainly due to exceptional items which is showing gain on settlements of Loans
under One Time Settlement (OTS) by the Assets Reconstruction Company (ARC).

The Company has earned profit during the year. The profit after tax of 15404.86 lacs as against a loss after tax
of 2118.12 lacs in the previous year 2022-23. The turnover of the company was decreased from 30369.37
lacs as to 8035.67 lacs as compare to previous year 2022-23.

F. Key Ratios :

During the year the ratio has impacted mainly because of One Time Settlement (OTS) of Outstanding Borrowing
and Interest amount.

G. Human Resource Management And Industrial Relations:

The Company continued to enjoy harmonious and cordial relations amongst its entire employee. The key
to the success of the Company lies in its people whose skills, expertise, and talent help the Company to
achieve and sustain its market position. It is the peoples commitment, technical know-how, innovative ability
and performance driven mindset that enable to react swiftly and creatively to the evolving customer and market
needs.

Human resources continue to be an invaluable and intangible asset and key success factor for the Company to
grow and sustain its market position in a highly competitive and challenging environment. Your Company firmly
believes that people are the pivotal force behind the growth and excellence in business operations. Focus
on developing leadership skills and building talent for the future and the process of improving organizational
and human capability through competency mapping of managerial positions in all areas of the Companys
operations, continued as a major initiative. The Company is committed to provide the right environment to its
employees to work and to inculcate a sense of ownership and pride.

H. Cautionary Statement:

Statements in this Report on Management Discussion and Analysis describing the Companys objectives,
projections, estimates, expectations or predictions are based on certain assumptions and expectations of future
events. Actual results could differ materially from those expressed or implied. Investors are cautioned that this
discussion contains statements that involve risks and uncertainties. Words like anticipate, believe, estimate,
intend, will, expect and other similar expressions are intended to identify such forward looking statements. The
Company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis
of subsequent developments, information or events.