Shiva Texyarn Ltd Management Discussions

COMPANYS BUSINESS

Your Company is historically involved in the manufacturing of cotton yarn, predominantly in the Hosiery Segment in medium counts and also slowly shifting the focus towards finer yarn counts, with an installed capacity of 52416 spindles near Coimbatore.

The Technical Division of the Company include one of the countrys largest installations of Coating and Lamination Capacity, producing a range of B2B and B2C products catering to the home textile, digital imaging, baby and adult mattress protection, defence, medical and allied customer categories.

The Processing factory in Perundurai makes a range of speciality fabrics including Nylon and Polyester knits, pile fabrics, microfiber fabrics made of conjugate yarn and free cut as well as seamless products that cater to a range of premium customers.

The Garments Division are engaged in a range of high value added military products manufacturing, particularly in OBRNe defense, Cold weather clothing systems and Carrying Gear. It also covers contract manufacturing of backpacks to global brands.

The 55 Wind Mills located in the State of Tamilnadu have an installed capacity to produce 13.195 MW of wind power which is being consumed captively.

a) INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian textile industry has a significant presence both in the Indian economy and in the International Textiles economy. The textile industry in India is fast growing and have long term sustainable future subject to the extension of supportive measures by the appropriate governments and availability of favourable business climate.

Opportunities:

Growth in income

Immense potential of Technical Textiles Government Push for PLI, MITRA, TUF Schemes etc.,

Threats:

Raw material costs fluctuations

Low global demand because of Russia - Ukraine war

Shift to Man Made Fibre

c) SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Please refer Directors Report.

d) OUTLOOK

Considering the Governments various initiatives in support of the Indian Textile Industry, the outlook continues to be an optimistic one.

e) RISKS AND CONCERNS

Availability of Quality Cotton, erratic price movement of Cotton, High cost of Power /other Inputs and availability of skilled labour are identifiable risks and concerns to the Textile Industry. These factors may have a severe impact on the operating & financial performance of your Company.

However, the management expects more and more supportive measures from the appropriate Governments to soften the price of cotton and other raw materials.

f) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control procedures and systems commensurate with the size and nature of its business for purchase of raw materials, plant and machinery, components and other items and sale of goods. The checks and controls are periodically reviewed by the Audit Committee. The internal control systems are calibrated frequently to the optimum levels to match with the dynamic changes of business conditions, statutory and accounting requirements.

g) FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Please refer Directors Report for the financial performance/operational performance of the Company.

h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCE FRONT/INDUSTRIAL RELATIONS FRONT INCLUDING NUMBER OF PEOPLE EMPLOYED:

Please refer Directors Report.

i) DETAILS OF Significant Changes

IN KEY FINANCIAL RATIOS