The Company has since suspended its manufacturing activities. The entire proceeds on sale of the manufacturing unit at Prafula Kanan has been parked in interest earning short-term deposits pending commencement of new venture compatible with the companys capital structure and found viable under the changed economic scenario of the country.
The Main object with which the Company was to peruse on incorporation was Manufacturing and selling fine Quality Hosiery Garment under the Brand Name Siddeshwari. Thus the Company had been operating with single product Segment and that too has since been closed consequent to serious labour problem w.e.f June 2002 thereafter. The Company is pursuing sporadic Trading operation and dealing in derivatives to sustain its assets and cash liquidity in both.
Your Directors have since examined and analyzed the companys operational activities and business standard in the perspective of Indian economic growth and development during the last few years until close off of the last financial year, that is before outbreak of ‘Corona Pandemic, India had emerged as one of the most progressive and developing economy ranking amongst the leading three (3) economies in the world. Global growth in the year 2021-22 recorded a very weak pace since the global financial crisis due to worldwide Covid 19 pandemic as a cause of the Wuhan virus, reflecting common influences across countries and country-specific factors. Worsening macroeconomic stress related to tighter financial conditions, geopolitical tensions, and social unrest rounded out the difficult picture. The global economy, which was facing headwinds due to structural barriers in international trade from last couple of years mainly due to USA-China trade tensions, got severe jolt of COVID-19 led crisis. Increasing trade barriers as well as trade uncertainty stemming from rising trade tensions, especially between US and China as well as India and China, also resulted in declining business confidence and further limited trade. This led to drastic reduction in all kind of economic activities of consumption and investment leading to damping of consumers, investors and industrys sentiments. Meantime the effect of Corona Pandemic on human life has turned out to be so high that the world economy has become crippled due to lock down of most economic activities while fighting the Corona virus devastation. This again has given some advantage to the Indian economy to become a world leader. On the other hand Chinese aggression at the northern border of the country has led Indian government to express stern view on boycotting Chinese supplies and support which had been constituted almost 80% of Indian foreign trade. The global economy grew by 2.9% in F Y 2019, recording its weakest pace since the global financial crisis of 2008. This also opened up a new challenge before Indian Businesses to fill in the vacuum. Thereby like all other Indian companies there is a golden opportunity for your company to react to the situation with revival of its existing (now closed) operations plus initiative to start new businesses by way of diversification your directors vehemently support the view and are seriously examining the viability of alternatives.
The company is not required to be registered under section 45IA of The Reserve Bank of India Act 1934. Accordingly paragraph 3(xxi) of the order is not applicable to the company.