Shree Karni Fabcom Ltd Management Discussions

FY2024 represents the fiscal year 2023-24, from 1 April 2023 to 31 March 2024, and analogously for FY2023 and previously such labelled years.

GLOBAL ECONOMY

More than three years after the global economy suffered the largest shock of the past 75 years, the wounds are still healing, amid widening growth divergences across regions. After a strong initial rebound from the depths of the COVID-19 pandemic, the pace of recovery has moderated. Several forces are holding back the recovery. Some reflect the long-term consequences of the pandemic, Russias war in Ukraine, and increasing geoeconomic fragmentation. Others are more cyclical, including the effects of monetary policy tightening necessary to reduce inflation, withdrawal of fiscal support amid high debt, and extreme weather events. Despite signs of economic resilience earlier this year and progress in reducing headline inflation, economic activity is still generally falling short of pre-pandemic (January 2020) projections, especially in emerging market and developing economies. The strongest recovery among major economies has been in the United States, where GDP in 2023 is estimated to exceed its prepandemic path. The euro area has recovered, though less strongly—with output still 2.2 percent below prepandemic projections, reflecting greater exposure to the war in Ukraine and the associated adverse terms-of-trade shock, as well as a spike in imported energy prices. In China, the pandemic-related slowdown in 2022 and the property sector crisis contribute to the larger output losses of about 4.2 percent, compared with prepandemic predictions. Other emerging market and developing economies have seen even weaker recoveries, especially low-income countries, where output losses average more than 6.5 percent. Higher interest rates and depreciated currencies have exacerbated the difficulties of low-income countries, placing more than half either at high risk of distress or already in distress. Overall, global output for 2023 is estimated at 3.4 percent (or about $3.6 trillion in 2023 prices) below prepandemic projections. Private consumption has also recovered faster in advanced economies than in emerging market and developing economies, owing to an earlier reopening in the former group facilitated by greater availability of effective vaccines, stronger safety nets, more ample policy stimulus, and greater feasibility of remote work. These factors supported livelihoods during the pandemic, and household consumption is now broadly back to prepandemic trends. Among advanced economies, private consumption has been stronger in the United States than in the euro area, with households receiving larger fiscal transfers early in the pandemic and spending the associated savings more quickly; being better insulated from the rise in energy prices resulting from the war in Ukraine; and feeling relatively confident amid historically tight US labor markets, which have supported real disposable incomes.

INDIAN ECONOMY

Strong economic growth in the first quarter of FY23 helped India overcome the UK to become the fifth-largest economy after it recovered from the COVID-19 pandemic shock. Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at 293.90 lakh crores (US$ 3.52 trillion), against the First Revised Estimates (FRE) of GDP for the year 2022-23 of 269.50 lakh crores (US$ 3.23 trillion). The growth in nominal GDP during 2023-24 is estimated at 9.1% as compared to 14.2% in 2022-23. Strong domestic demand for consumption and investment, along with Governments continued emphasis on capital expenditure are seen as among the key driver of the GDP in the first half of FY24. During the period January-March 2024, Indias exports stood at US$ 119.10 billion, with Engineering Goods (25.01%), Petroleum Products (17.88%) and Organic and Inorganic Chemicals (7.65%) being the top three exported commodity. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

Future capital spending of the government in the economy is expected to be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing. In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers. The contact-based services sector has demonstrated promise to boost growth by unleashing the pent-up demand. The sectors success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the beginnings of a comeback.

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

Indias appeal as a destination for investments has grown stronger and more sustainable because of the current period of global unpredictability and volatility, and the record amounts of money raised by India-focused funds in 2022 are evidence of investor faith in the "Invest in India" narrative.

THE TEXTILE SECTOR

Indias textiles sector is one of the oldest industries in the Indian economy, dating back to several centuries. The industry is extremely varied, with hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capital-intensive sophisticated mills sector at the other end. The fundamental strength of the textile industry in India is its strong production base of a wide range of fibre/yarns from natural fibres like cotton, jute, silk, and wool, to synthetic/man-made fibres like polyester, viscose, nylon and acrylic.

The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. The close linkage of textiles industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles makes it unique in comparison to other industries in the country. Indias textiles industry has a capacity to produce a wide variety of products suitable for different market segments, both within India and across the world.

In order to attract private equity and employee more people, the government introduced various schemes such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS) and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.

MARKET SIZE

The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel.

India is the worlds largest producer of cotton. Estimated production stood at 362.18 lakh bales during cotton season 202122. Domestic consumption for the 2021-22 cotton season is estimated to be at 338 lakh bales. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers. Production of fibre in India reached 2.40 MT in FY21 (till January 2021), while for yarn, the production stood at 4,762 million kgs during the same period.

Indias textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Indias textile and apparel exports to the US, its single largest market, stood at 27% of the total export value in FY22. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22.

Indias textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country

INDIAN TECHNICAL TEXTILES INDUSTRY

Indias strengths have already been defined in traditional textiles and natural fibres globally. It is the second largest producer of polyester in the world and is now emerging as a key player in technical textiles industry contributing to a market size of $ 19 Bn. Technical textiles are defined as high performance textile products, materials, and fibres that are used for their functional use rather than for aesthetic purposes. Technical textiles have varied applications in several vital industries including aerospace, packaging, hazard protection, shipping, sports, agriculture, defence, healthcare, construction, etc.

The usage of technical textiles has the benefit of large-scale improvements in performance, efficiency, conservation of resources, cost reduction, environmental protection and cost effectiveness. Other terms used for defining Technical textiles include industrial textiles, functional textiles, performance textiles, engineering textiles, invisible textiles and hitech textiles.

Technical textiles is a fast-growing sub-segment that finds its usage in an array of sectors. The end use application of technical textiles is widespread and seen in industries such as agriculture, construction, sports apparel, healthcare etc. Indias leap towards modernisation and its manufacturing competitiveness are some of the key contributors to the growth of this segment.

Technical textile accounts for approximately 13% of Indias total textile and apparel market and contributes to Indias GDP at 0.7%. There is a huge potential to fulfil a large demand gap as the consumption of technical textiles in India is still only at 5-10% against 30-70% in some of the advanced countries. Hence, garnering direct attention from prime minister Narendra Modi and his Cabinet Committee on Economic Affairs (CCEA), a National Technical Textiles Mission has been set up that aims at an average growth rate of 15-20% to increase the domestic market size of technical textiles to $ 40-50 Bn by the year 2024; through market development, market promotion, international technical collaborations, investment promotions and Make in India initiative.

Technical textiles, a sunrise sector, has become even more relevant during the Covid-19 crisis when the global manufacturing have come to a grinding halt and the ban on export of critical medical equipment including N95 face masks and protective gears, have made imports to India nearly impossible. India was entirely import dependent for PPE kits. From manufacturing 0 PPE kits in March, it soon rose to manufacturing 2.5 lakh a day in 60 days becoming the second largest manufacturer after China. Today, India stands to produce around 4.5 lakh PPEs and more than 1.5 crore masks a day.

Despite the economic slowdown and downturn in the overall demand for textiles due to Covid-19, the industry continues to be the second largest employer in India. By transforming a Covid-19 crisis to an opportunity, India has proven its ability to innovate and rise to the challenge with limited resources and time. Therefore, it is even more essential for the government and industry to collaborate to boost technical textiles, a high value segment of this sector.

Application Areas of Technical Textiles

Agrotech Bird Protection nets, finishing nets, crop covers, mulch mats, shade nets

Buildtech Floor & wall coverings, scaffolding nets, awnings & canopies Clothtech Interlinings, labels, elastic narrow fabrics, shoelaces Geotech Geo-composites, geo-bags, geogrids, geonets

Hometech Blinds, mattress, pillow components, carpet backing cloth, mosquito nets _k Inductech Industrial brushes, composites, ropes, cordages, conveyor belts Mobiitech Nylon tire cord fabrics, seat cover fabric/uphoistery, seat belts, insulation felts Mobiltech industrial brushes, composites, ropes, cordages, conveyor beits Oekotech Waste management, environnemental protection, recycling Protech Ballistic protective clothing, fire retardant apparel, high visbility clothing Packtech Wrapping fabric, jute sacks, tea beg filter paper, woven sacks Sportech Sports nets, sleeping bags, hot air bailoons, parachute fabrics, sports composig

MAJOR GOVERNMENT SCHEMES FOR TECHNICAL TEXTILES NATIONAL TECHNICAL TEXTILES MISSION

With a view to position India as the Global Leader in Technical Textiles, Ministry of Textiles has launched the National Technical Textiles Mission (NTTM) with an overall outlay of INR 1480 Crores during 2020-21 to 2023-24.

PLI SCHEME FOR TEXTILES

In order to promote domestic production of Technical Textiles, Production Linked Incentive (PLI) scheme was launched, in addition to MMF Fabrics and MMF Apparel with an overall outlay of INR 10,683 Crores

PM MITRA SCHEME

To boost the overall textile industry and value chain, especially MMF and Technical Textiles, Ministry of Textiles launched PM

Mega Integrated Textile Regions and Apparel Parks (MITRA) Scheme with an overall outlay of INR 4445 Crores over a period of

7 years upto 2027-28.

INVESTMENT AND KEY DEVELOPMENT

• The industry (including dyed and printed) attracted foreign direct investment (FDI) worth US$ 3.99 billion from April 2000-March 2022. The textiles sector has witnessed a spurt in investment during the last five years.

• In 2022-23, the Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) is planning to offer B.Sc. and MBA courses in technical textiles.

• In November 2021, Federico Salas, the Mexican Ambassador to India, visited the Khadi India Pavilion at the India International Trade Fair 2021 and suggested that India and Mexico should come together to promote Khadi globally.

• Companies in home textile are using technology to optimise the value chain. For example, in October 2021, Welspun India introduced Wel-Trak 2.0—an upgraded, patented end-to-end traceability technology—to track textile raw materials throughout the supply chain.

• Home textile companies in India are also leveraging strategic partnerships to strengthen their business operations and foothold in the country.

• In October 2021, Welspun India collaborated with DuPont Biomaterials to introduce a home textile range and strengthen the companys sustainable textiles business.

• In May 2021, Indo Count Industries Ltd. (ICIL) announced an investment of 200 crore (US$ 26.9 million) to expand its production capacity.

• In April 2021, RSWM Limited, Flagship Company of the US$ 1.2 billion LNJ Bhilwara Group, was recognised for achieving the highest textile export turnover in 2020 by the Ministry of Industries & CSR, Government of Rajasthan.

• In April 2021, Bella Casa Fashion & Retail Ltd. (BCFRL) announced that it is expanding its two existing plants and adding one new facility to offer employment opportunities to 1,000 people. The expansion would involve a total investment of 65 crore (US$ 8.63 million).

GOVERNMENT INITIATIVES

The Indian government has come up with several export promotion policies for the textiles sector. It has also allowed 100% FDI

in the sector under the automatic route.

Other initiatives taken by the Government of India are:

• In June 2022, Amazon India signed a MoU with the Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur entity, to encourage the development of weavers and artisans throughout the state.

• In June 2022, the Kerala government announced that it would provide free training to 1,975 candidates under the SAMARTH scheme of the textile industry.

• The Sustainable Textiles for Sustainable Development (SusTex) project by the United Nations Climate Change entity enhances the employment and working circumstances of textile artisans while promoting the sustainable production and use of environmentally friendly textiles.

• In May 2022, Minister of Micro, Small and Medium Enterprises, Narayan Rane, inaugurated the Center of Excellence for Khadi (CoEK) at NIFT, Delhi. In order to produce innovative fabrics and apparel that will meet the needs of both domestic and foreign consumers, the CoEK will seek to introduce the newest designs and adopt procedures that adhere to international standards.

• In April 2022, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal, said that new Economic Cooperation and Trade Agreements with Australia and the UAE would open infinite opportunities for textiles and handloom. Indian textile exports to Australia and the UAE would now face zero duties, and he expressed confidence that soon Europe, Canada, the UK and GCC countries would also welcome Indian textile exports at zero duty.

• In March 2022, the Ministry of Textiles, in collaboration with the Confederation of Indian Industries (CII), organized a day-long International Conference on Technical Textiles with the theme: Creating the Winning Leap in Technical Textiles.

• The Khadi and Village Industries Commission (KVIC) achieved turnover of 1.15 lakh crore (US$ 14.68 billion) in FY22, a growth of 20.54% YoY, and more than any Indian FMCG company managed in FY22.

• The Government of India has earmarked a corpus of 1,000 crore (US$ 127.72 million) dedicated for research and development of the technical textiles sector.

• In March 2022, the Bihar government submitted a proposal to the Ministry of Textiles to set up a mega hub under the PM Mitra Mega Textile Park.

• In March 2022, Tamil Nadu Chief Minister MK Stalin announced that the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) will set up a mega textile park in the Virudhunagar district.

• Under the Union Budget 2022-23, the total allocation for the textile sector was 12,382 crore (US$ 1.62 billion) Out of this, 133.83 crore (US$ 17.5 million) is for the Textile Cluster Development Scheme, 100 crore (US$ 13.07 million) for the National Technical Textiles Mission, and 15 crore (US$ 1.96 million) each for PM Mega Integrated Textile Region and Apparel parks scheme and the PLI Scheme.

• For export of handloom products globally, the Handloom Export Promotion Council (HEPC) is participating in various international fairs/events with handloom exporters/weavers to sell their handloom products in the international markets under NHDP.

• The Ministry of Textiles has also been implementing the Handloom Marketing Assistance (HMA), a component of National Handloom Development Programme (NHDP) all across India. HMA provides a marketing platform to the handloom weavers/agencies to sell their products directly to the consumers and develop and promote the marketing channel through organizing expos/events in domestic as well as export markets.

• In November 2021, Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Piyush Goyal, stated the desire to target a 3-5x time increase in the export of technical textiles worth US$ 10 billion over the next three years.

• The Indian government has notified uniform goods and services tax rate at 12% on man-made fabrics (MMF), MMF yarns, MMF fabrics and apparel, which came into effect from January 1, 2022.

• Minister of Textiles, Commerce and Industry, Consumer Affairs & Food and Public Distribution, Piyush Goyal, announced a mega handloom cluster in Manipur and a handloom and handicraft village at Moirang in Bishnupur. The mega cluster will be set up at an estimated cost of 30 crore (US$ 4.03 million) under the National Handloom Development Programme (NHDP).

• In October 2021, Minister for Commerce and Industry, Textiles, Consumer Affairs, Food & Public Distribution, Piyush Goyal, announced the creation of 100 textile machinery champions in the country, and to promote them in the global market. Through this, the government aims to make India a global player in textiles machinery.

• In October 2021, the Ministry of Textiles approved the continuation of the comprehensive handicrafts cluster development scheme with a total outlay of 160 crore (US$ 21.39 million). Through this scheme, the government aims to support domestic SMEs and local artisans.

ROAD AHEAD

The future of the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand. India is working on various major initiatives to boost its technical textile industry. Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on the rise. The government is supporting the sector through funding and machinery sponsoring.

Top players in the sector are achieving sustainability in their products by manufacturing textiles that use natural recyclable materials.

With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. The growth in textiles will be driven by growing household income, increasing population and increasing demand by sectors like housing, hospitality, healthcare, etc.

The technical textiles market for automotive textiles is projected to increase to US$ 3.7 billion by 2027, from US$ 2.4 billion in 2020. Similarly, the industrial textiles market is likely to increase at an 8% CAGR from US$ 2 billion in 2020 to US$ 3.3 billion in 2027. The overall Indian textiles market is expected to be worth more than US$ 209 billion by 2029.

OPERATIONS

Our Company, a trailblazer in technical textiles, leads Indias textile evolution, specializing in top-tier fabrics for the luggage industry. With an expansive manufacturing facility in Surat and a dynamic management team, we prioritize quality and competitive pricing to exceed industry standards globally. Our remarkable growth is fueled by deep domain expertise, innovation, and an unwavering commitment to excellence in quality and customer service. We continue to innovate, investing in cutting-edge technology and our dedicated team to produce high-quality specialty fabrics at competitive prices with timely deliveries.

IMPORT AND EXPORT DETAILS

The company import goods for amount of Rs 145.12 Lakhs for March 31,2024 and of Rs 748.76 Lakhs for March 31,2023.

The details of revenue from Export and other than export for March 31,2024 and previous four years on Standalone basis are as under:

(Rs in Lakhs)

Category	2024		2023
	Amount	%	Amount	%
Export	242.05	1.85	Nil	Nil
Domestic	12837.79	97.86	12694.65	99.93
Other Income	38.77	0.29	9.40	0.07

The highlights of the financial results for the year ended March 31,2024 and the corresponding figure for the previous year are as under:

(Rs in Lakhs) (Rs in Lakhs except EPS)

Category	Standalone		Consolidated
	2023-24	2022-23	2023-24	2022-23
Revenue from Operations	13,079.84	12,694.65	13,707.77	12,694.65
Other Income	38.77	9.40	70.93	9.40
Total Income	13,118.61	12,704.05	13,778.70	12,704.05
Total Expenditure	11,422.26	11,992.05	11,875.12	11,992.05
Profit before tax	1,696.35	712	1,903.58	712
Current Tax	402.02	250.23	402.02	250.23
Income tax Adjustment	9.49	-	9.49	-
Deferred Tax Adjustment	(16.31)	-	(16.31)	-
Profit after Tax	1,301.15	461.77	1,471.27	461.77
Basic Earnings per share (in Rs)	18.40	6.53	20.80	6.53

QUALITY ASSURANCE

Our Company strives to maintain quality of the products it provides to the end consumer. we supply quality products which meet the applicable standards, we have set up a Research and Development facility ("R&D facility"), which consists of our quality assurance and quality control teams who check and conduct various tests in our in-house laboratory on the fabrics at various stages starting from grey cloth to the finished fabrics manufactured by us.

MARKETING APPROACH

The overall marketing of our products is supervised by our Managing Director. The efficiency of the marketing network is critical for success of our Company. Our success lies in the strength of our relationship with the customers who have been associated with our Company. Our team through their vast experience and good rapport with clients owing to timely and quality delivery of service plays an instrumental role in creating and expanding a work platform for our Company. Our relationship with the clients is strong and established. To retain our customers, our team regularly interacts with them and focuses on gaining an insight into the additional needs of customers. We intend to expand our existing customer base by expanding to other geographies.

Opportunities:

• The textile industry is expected to grow by 4% annually.

• Automation and digitalization will make production more efficient and cost-effective.

• E-commerce and online shopping will change consumer behavior, focusing on convenience and personalized products.

• The fashion industry will drive textile innovation through collaborations between manufacturers and designers.

• Growing connectivity will increase demand for smart textiles with features like biometric monitoring.

Threats:

• Growing competition due no entry barrier in informal sector

• Changes in Government Policy

• Rapidly changing climate Future Outlook:

• India is working on various major initiatives to boost its technical textile industry

• The government is supporting the sector through funding and machinery sponsoring.

• Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on the rise RISKS AND CONCERN

Risk and its Management: Risk accompanies prospects. As a responsible corporate, it is the endeavor of the management to minimize the risks inherent in the business with the view to maximize returns from business situations.

The architecture: At the heart of the Companys risk mitigation strategy is a comprehensive and integrated risk management framework that comprises prudential norms, structured reporting and control. This approach ensures that the risk management discipline is centrally initiated by the senior management but prudently decentralized across the organization, percolating to managers at various organizational levels helping them mitigate risks at the transactional level.

The discipline: The Company has clearly identified and segregated its risks into separate components, namely operational, financial, strategic and growth execution. All the identified risks are inter-linked with the Annual Business Plans of the Company, so as to facilitate Company-wide reviews.

The review: A Risk Management Committee of the Board of Directors, comprising Board Members, has been constituted to review periodically updates on identified risks, implementation of mitigation plans and adequacy thereof, identification of new risk areas etc.

The Board of Directors also reviews the Risk identification process and mitigation plans regularly. A senior executive has been entrusted at all the levels of business operation in the Company whose role is not only to identify the Risk but also to educate about the identified risk and to develop Risk Management culture within the business.

Key counter measures: The Company has institutionalized certain risk mitigation procedures outline as under:

• Roles and responsibilities of the various entities in relation to risk management have been clearly laid down. A range of responsibilities, from the strategic to the operational, is specified therein. These role definitions, inter alia, are aimed at ensuring formulation of appropriate risk management policies and procedures, their effective implementation, independent monitoring and reporting by internal audit.

• Appropriate structures are in place to proactively monitor and manage the inherent risks in businesses with proper risk profiling.

• Wherever possible and necessary, appropriate insurance cover is taken for financial risk mitigation. Confirmation of compliance with applicable statutory requirements are obtained from the respective unit/divisions and subjected to an elaborate verification process.

• Quarterly reports on statutory compliances, duly certified, are submitted to the Audit Committee as well as the Board of Directors for review.

• Status of Demand/Notices on the Company, under various Acts and Rules, as well as status of litigations are reported to the Board of Directors every quarter.

INTERNAL CONTROL SYSTEMS

The Company has both external and internal audit systems in place. Auditors have access to all records and information of the Company. The Board recognizes the work of the auditors as an independent check on the information received from the management on the operations and performance of the Company. The Board and the management periodically review the findings and recommendations of the statutory and internal auditors and takes corrective actions whenever necessary.

The Company maintains a system of internal controls designed to provide reasonable assurance regarding:

• Effectiveness and efficiency of operations.

• Adequacy of safeguards for assets.

• Reliability of financial controls.

• Compliance with applicable laws and regulations.

CORPORATE SOCIAL RESPONSIBILITY

During the year under review, the provision of Section 135 of the Companies Act, 2013 and the rules made thereunder were not applicable to the Company. Further, the Company had undertaken IPO during the year under review and at that time CSR Committee were also constituted and CSR policy were adopted considering the expected profit for FY 2024. The provisions of CSR have become applicable to the Company w.e.f April 2024 as the net profit for FY 2024 exceeded the limit of Rs 5 Crores. The Audited Accounts for FY 2024 were approved by the Board of Directors on May 29, 2024.

The Company is liable to spend Rs 33.93 Lakhs towards CSR activities as per the Companys CSR policy. The CSR report for FY 2024 was not applicable as the Company was not covered by the provision of Section 135 of the Companies Act, 2013.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Our employees are our core resource and the Company has continuously evolved policies to strengthen its employee value proposition. Your Company was able to attract and retain best talent in the market and the same can be felt in the past growth of the Company. The Company is constantly working on providing the best working environment to its Human Resources with a view to inculcate leadership, autonomy and towards this objective; your company spends large efforts on training. Your Company shall always place all necessary emphasis on continuous development of its Human Resources. The belief "great people create great organization" has been at the core of the Companys approach to its people.

KEY RATIOS

Particulars	FY 2024	FY2023
Revenue ( in Lacs)	13,079.84	12,694.65
Net Profit After Tax ( in Lacs)	1,301.15	461.77
Earnings per share (in )	18.40	6.53
Operating Profit Margin (%)	14.75	9.59
Net Profit Margin (%)	9.95	3.64
Return on Net worth	14.51	20.11
Current Ratio (times)	1.75	1.43
Debtors Turnover(times)	3.91	4.29
Debt-equity (times)	0.75	1.59
Interest Coverage Ratio(times)	7.11	2.38

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis report detailing 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 a difference to the Companys operations include global and Indian demand supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the Companys products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other factors such as litigation and / or labor negotiations.