Symbiox Investment & Trading Co Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The company is mainly into Trading in textile goods & Investments. The company has a wide variety of sarees from plain to cater to the growing industry and offer its products to all the age groups. The Textile industry in India is highly diversified with a wide range of segments ranging from products of traditional handloom, handicrafts, wool and silk products to the organized textile industry. It is the second largest industry in terms of providing employment opportunities to more than 35 million people in the country.

As regards developments in the industry and your companys performance for the year under review in relation to those developments, the same has been explained in greater details in Directors Report under Performance Review.

FORWARD-LOOKING STATEMENT

The report contains forward-looking statements, identified by words like ‘plans, ‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates and so on. All statements that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The

Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events. The Company disclaims any obligation to update these forward-looking statements, except as may be required by law.

STRENGTHS AND OPPORTUNITIES

• Complete value chain from the procurement of raw materials to the production of finished goods.

• Huge untapped potential for the development of technical textiles

• Make in India campaign covering 25 sectors including the textile and garment industry has been launched. Large and diversified segments in this industry that provide wide variety of products.

• ASEAN countries to develop as a textile and garment manufacturing hub, so opportunities for global and regional export should improve.

• New Product development which needs additional focus in Indian Companies in order to move up the value chain and capture a great global market share

• Vibrant domestic market, enabling manufacturers to spread out risk

WEAKNESS AND THREATS

• Use of outdated manufacturing technology from the low-end supplier which has resulted in low value addition in the industry.

• India is its geographical distance from major global markets of US, Europe and Japan in contrast to its rivals like Mexico, China etc which are comparatively nearer. Big geographical distance results in high shipping expenses and lengthy lead-time.

• Fragmented Industry leads to lower ability to expand and emerge as ‘world class players.

• Intense competition in domestic market.

• Volatile exchange rate situation.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has Internal Control System, commensurate with the size, scale and complexity of its operations.

The scope and authority of the Internal Audit function is well defined. To maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to other Directors. The Accounts Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and based on the report of internal audit the management undertakes corrective action in the respective areas and thereby strengthens the controls.

Significant audit observations and recommendations if any, along with corrective actions thereon are required to be presented to the Audit Committee of the Board. During this financial year no such observations have been made.

DISCUSSIONS ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Financial Performance of the company for the year under review is disclosed in the Directors report. Please refer to Directors Report for the detail study on the performance review of the company.

KEY RATIOS

PARTICULARS	2024-25	2023-24	Change in ratios in %
Current Ratio	78.36	71.69	9.30%
Debt Equity Ratio	1.01	1.01	0
Inventory Turnover	-5.50	-	5.50%
Ratio
Trade Receivables	4.18	53.79	92.2%
Turnover Ratio
Net Profit Ratio	6.93	5.05	37.2%

REASONS FOR MORE THAN 25% VARIANCE

RATIOS WITH VARIANCE MORE THAN 25%	REASONS FOR VARIANCE
Trade Receivable Turnover Ratio	Due to decrease in Net credit sales
Net Profit Ratio	Due to increase in net profit after tax in current year

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The industrial relations remained cordial throughout the year. The employees of the Company have extended a very productive cooperation in the efforts of the management to carry the Company to greater heights. Continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees and workmen of the Company.

FORTHCOMING STATEMENT

The statements made above may be construed as Forward-Looking Statements within the meaning of the applicable laws and regulations. Actual performance of the Company may vary substantially depending upon the business structure and model from time to time. Important external and internal factors may force a downtrend in the operations of the Company.