Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Industry Conditions and Review of Operations
During the year under review, the Cotton Textile industry had been facing major challenges.
The Company managed to reach a turnover of Rs.260.87 Crores even under the conditions of uncertain cotton prices and heavy competition. The major factors contributing to heavy losses are the sale of yarn and price realization. Both the factors have dropped down drastically resulting in reduced margins of the Company. Necessary measures are being initiated to improve the situation by rationalizing operations and cutting down the cost during the current financial year.
It appears bright for the Indian textile industry, in particular Cotton textiles, both in domestic and export consumption. Potential for yarn produced from man-made fibers are expected to improve in consumer markets, which will result in improving the performance of the Company.
New type of MMF are being planned for Exports. Furthermore, various measures are also being initiated to maximize the capacity utilization and efficiency rate and also to minimize the expenditure involved to improve the profit margins of the Company.
Excess spinning capacity availability nationwide and incentive schemes offered by the other state governments along with competition from peer groups with modern facilities results in better quality with reduced costs and higher productivity which results in heavy losses to our Company.
Besides this, lack of skilled manpower & increasing costs of Power & Raw materials are also other major threats faced by our industry which have a significant impact on the Productivity and performance of the Company.
Baring the uncertainty in economic growth, the performance of the company can be improved to reach the defined targets depending on the monetary policy of the Country. Lack of Export orders due to governments policy also are expected to have an impact on the export markets which will have an effect on the profitability of the Company.
Risks and concerns
The nature and the magnitude of the risks associated with the Company are reviewed and placed before the Board periodically. Various measures for modernization have been introduced to reduce the dependency of labour, which also ensures optimum capacity utilization & quality outputs.
Health, safety and Security Environment
Our Company has always been adopting all possible safety measures concerning the health and safety of the Workers and staffs at all levels. This has improved the morale among the workers and staffs and also the working environment at large.
Human Resources/Industrial Relations
Employer-Employee relations continued to remain cordial during the year at all the units of the Company. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels. Even under the situation of Non availability of skilled manpower, the costs of recruiting, training and deploying trained labour still remains a major constraint to the Company. The Company has 595 permanent employees on roll as on 31st March 2018.