The Management of S K S Textiles Limited is presenting the Management Discussion and
Analysis Report covering the operations and financial performance of the Company for the
financial year 2021-22. The Company is engaged in manufacturing and trading of grey
fabrics and finished fabrics for shirting, suiting and other accessories for its own brand
and also outsourcing basis for other fabric/garment companies.
INDUSTRY STRUCTURE & DEVELOPMENT:
India s textile industry is one of the Economy s largest. In 2000/01, the textile and
garment industries accounted for about 4 percent of GDP, 14 percent of industrial output,
18 percent of industrial employment, and 27 percent of export earnings (Hashim). India s
textile industry is also significant in a global context, ranking second to China in the
production of both cotton yarn and fabric and fifth in the production of synthetic fibers
and yarns.
OUTLOOK
The Indian textile industry has a potential to double itself in size over the next 6-7
years, Government has been overall supportive in encouraging textile industry in India.
Textile and garment industry has been included in list of 25 sectors of "Make in
India" initiative of the
Government of India. With the right Government policies, we believe that the Indian
Textile Industry is well poised to benefit from the large opportunity offered in the
domestic and export market. Under the "Make in India" intitative, investment
opportunities for foreign companies and entrepreneurs are available across the entire
value chain of synthetic, value -added and specialty fabrics, fabric processing set ups
for all kinds of natural and synthetic textiles, technical textiles, garments and retail
brands.
COMPETITION
The industry in which we operate is highly competitive and fragmented. Competition
emerges from small as well as big players in the textile industry. The organized players
in the industry compete with each by providing high quality-time bound products and value
added services. We have a number of competitors offering services similar to us. We
believe the principal elements of Competition in textile industry are price, fabric
quality, timely delivery and reliability. We compete against our competitors by
establishing ourselves as a designer based manufacturing unit with industry expertise in
blending, dying and printing which enables us to provide our clients with innovative
designs suitable to current fashion and market requirements.
SWOT ANALYSIS OF INDIAN TEXTILE:
India s textile industry is one of the world s leading textile industries. Few years
back, this industry came under the unorganized sector, but this scene got completely
revolutionized after the Indian economy s liberalization. Right after liberalization, the
textile industry in India got the much-needed push, and today it is counted as one of the
largest industries in the world. Till date, only China is one nation that could match up
to the competitiveness of the Indian textile industry.
Strengths
The Indian textile industry is autonomous and self-governing.
There is easy availability of low cost and proficient manpower that contributes
extensively in the growth of the industry. Raw material is easily accessible this acts as
a major contributing factor in controlling the costs and minimizes the operational effort.
The economy is growing rapidly and one can observe a potential international and domestic
market.
The fiber industry is growing at a rapid speed as large varieties of cotton fiber are
available easily.
The industry has an added advantage of having numerous segments which help in the
provision of a huge variety of products.
Weaknesses
The textile industry of India is one of the highly disintegrated industries Heavy
losses Heavy Financial Burden Few segments of this industry are not highly productive.
There is a huge dependency of the industry on cotton.
The mill segment is gradually declining. Labour laws are not very favorable.
The power and interest rates, and indirect taxes are high. The act of generating
economies of scale lacks.
Opportunities
The textile industry records an annual growth of around 6-8%.
A shift towards the market of branded ready-made garment is being observed.
More number of emerging malls and retail industries are providing opportunities to
industry s segments like handicrafts and apparels.
There is a provision of more FDI and investment opportunities.
Withdrawal of quota restriction is contributing immensely in market development. The
global needs are being catered with product development.
An upsurge in the purchasing power and disposable income of Indian customers has opened
room for new market development.
Threats
Competing with other progressing countries like China. Striking a balance between the
quality and price of products.
Satisfying the demands of people all across the globe and at the same time, steadily
improving the quality of the products.
Striking a balance between demand and supply. Environmental and international labour
laws.
Removal of quota system will fluctuate the export demand.
SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:
The Company is engaged in the business of manufacturing and sale of textile accordingly
this is the only single reportable segment.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
Your Company has an effective internal control and risk-mitigation system, which are
constantly assessed and strengthened with new/revised standard operating procedures. The
Company s internal control system is commensurate with its size, scale and complexities of
its operations. The internal and operational audit is entrusted to N N K & CO. a
reputed firm of Chartered Accountants. The main thrust of internal audit is to test and
review controls, appraisal of risks and business processes, besides benchmarking controls
with best practices in the industry. The Audit Committee of the Board of Directors
actively reviews the adequacy and effectiveness of the internal control systems and
suggests improvements to strengthen the same.
The Company has a robust Management Information System, which is an integral part of
the control mechanism. The Audit Committee of the Board of Directors, Statutory Auditors
and the Business Heads are periodically apprised of the internal audit findings and
corrective actions taken. Audit plays a key role in providing assurance to the Board of
Directors. Significant audit observations and corrective actions taken by the management
are presented to the Audit Committee of the Board. To maintain its objectivity and
independence, the Internal Audit function reports to the Chairman of the Audit Committee.
ENVIRONMENT AND SAFETY:
The Company is conscious of the importance of environmentally clean and safe
operations. The
Company s policy requires conduct of operations in such a manner, so as to ensure
safety of all concerned, compliances of environmental regulations and preservation of
natural resources.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS:
Your Company has team of qualified and dedicated personnel who have contributed to the
consolidation of the operations of your Company. Your Company s industrial relations
continued to be harmonious during the year under review. Your Company has succeeded in
attracting and retaining key professional and intends to continue to seek fresh talents to
further enhance and grow our business.
CAUTIONERY STATEMENT:
Statement in this report describing the Company s objective, expectations or
predictions may be forward looking statements within the meaning of applicable securities
laws and regulations. Actual result may differ materially from those expressed in the
statements. Important factors that could influence the Company s operations include
economic conditions affecting demand / supply price condition in the domestic markets in
which the Company operates, changes in the government regulations, tax laws and other
statutes and other incidental factors.
COMPLIANCE CERTIFICATE IN TERMS OF REGULATION 17 (8) OF SEBI (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
To,
The Board of Directors S K S Textiles Limited
I, the undersigned in my capacity as the Managing Director and Chief Financial Officer
of S K S
Textiles Limited ( the company ), to the best of my knowledge and belief, certify that:
i. I have reviewed the financial statements and Cash Flow Statement for the year ended
31st March, 2022 and based on my knowledge and belief.
ii. These statements do not contain any materially untrue statements or omit any
material fact or contain statements that might be misleading.
iii. These statements together presents a true and fair view of the Company s affair
and are in compliance with existing Accounting Standards, applicable laws and Regulations.
a. I further state that to the best of knowledge and belief, there are no transactions
entered into by the Company during the year which are fraudulent, illegal or violative of
Company s Code of Conduct.
b. I am responsible for establishing and maintaining internal controls for
financial reporting and I have evaluated the effectiveness of the Internal Control System
of the Company pertaining to financial reporting and I have not come across any reportable
deficiencies in the design or operation of such controls.
I have indicated to the Auditors and Audit Committee:
1. Significant changes, if any, in internal control over financial reporting during the
year;
2. Significant changes, if any, in the accounting policies made during the year and
that the same have been disclosed in the notes to the financial statements; and
3. Instances of significant fraud of which I have become aware and involvement therein,
if any, of the management or an Employee having significant role in the Company s internal
control system over financial reporting.
For and on behalf of Board of Directors
Sd/-
Vicky Sukanraj Shah
(Managing Director and CFO) Place: Mumbai Date: 30/05/2022
+91-9892691696
