Soma Textiles & Industries Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

The Company was primarily engaged in the business of manufacturing of Cotton Yarn, Denim Fabrics, Shirtings and Garments. The Honble Gujarat High Court directed to close down the operations of polluting industries in and around Ahmedabad in the state of Gujarat and the decision of the High Court was upheld by Honble Supreme Court of India, due to which the Company has discontinued its core manufacturing operations.

In order to sustain the business, preserve shareholder value, and utilize existing expertise, the Company strategically engaged in trading of cotton from the month of November, 2022.

2. OPPORTUNITIES AND THREATS

The future for the Indian textiles industry looks promising. The Indian textile industry has vast potential for growth, buoyed by strong domestic consumption as well as export demand. Cotton trading involves large volumes and high-value transactions, requiring significant working capital and inventory management. A slowdown in the global textile industry or trade barriers.

3. INTERNAL CONTROL SYSTEMS

The Company has an adequate internal control system commensurate with the size of the Company.

4. HUMAN RESOURCES:

Employee relations continued to be cordial. Further during the year, the Company reached a compensation settlement with majority of the permanent employees of the Company through a Voluntary Retirement Scheme. The Company recognizes the key role played by the people and we would like to thank each and every member of the Soma Textiles family for their role and contribution towards the company over the years.

5. CAUTIONARY STATEMENT

Certain statements in the "Management Discussion and Analysis" section may be forward looking and are stated as required by applicable laws and regulations. Many factors may affect the actual results, which could be different from what the Directors envisage in terms of future performance and outlook.