Trident Texofab Ltd Management Discussions.

1. Industry Structure and Developments:

The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour in textiles. Even today, textiles sector is one of the largest contributors to Indias exports with approximately 13 per cent of total exports. The textile industry has two broad segments. First, the unorganized sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. The second is the organized sector on sisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale. The textile industry employs about 40 million workers and 60 million indirectly. Indias targeted textile exports for financial year 2017-18 is US$ 45 billion.

The Indian textiles industry, currently estimated at around US$ 120 billion, is expected to reach US$ 230 billion by 2020. The Indian Textile Industry contributes approximately 2 per cent to Indias Gross Domestic Product (GDP), 10 per cent of manufacturing production and 14 per cent to overall Index of Industrial Production (IIP).

Indian khadi products sales increased by 33 per cent year-on-year to Rs 2,005 crore (US$ 311.31 million) in 2016-17 and is expected to exceed Rs 5,000 crore (US$ 776.33 million) sales target for 2018-19, as per the Khadi and Village Industries Commission (KVIC).

The production of cotton in India is estimated to increase by 9.3 per cent year-on-year to reach 37.7 million bales in FY 2017-18. The total area under cultivation of cotton in India is expected to increase by 7 per cent to 11.3 million hectares in 2017-18, on account of expectations of better returns from rising prices and improved crop yields during the year 2016-17.

2. Opportunity and Threats: Opportunity:

Our long-standing relationship with our major customers has been one of the most significant factors contributing to our growth. Our commitments to quality and customer service practices have been strong contributing factors to our robust customer relations. Over the years, we have steadily developed a robust base of customers for our products in national level. Todays every common man want their own home which also indicating factor of increase in demand of home is furnishing items.

To overcome the challenges and competition, we have taken various initiatives to reduce the operational costs, to develop new value added products, improve the performance and quality of existing value-added products as well as to explore new markets domestically and globally.

Innovative Ideas & product development is our forte To keep abreast with ever-changing fashion our product development team is continuously working towards creating commercial yet innovative range as per the market demand.

The amalgamation of the latest technology, unparalleled expertise and an excellent corporate strategy has resulted in an unprecedented growth of the company over the years. We have an experienced and dedicated team of professionals, catering to the needs of clients, delivering world-class products of the finest quality, at reasonable prices & timely deliveries.

Threats:

? Change in Policy and Regulations.

? New entrants in the market and intense competition by existing players? Technology may become obsolete due to Innovation in Technology

3. Risk Management and Concerns:

Risk Management forms an integral part of your Companys operations. Your Company continues to focus on a system

based approach to business risk management. It broadly involves identification & potential risks, their analysis and impact as also risk mitigation initiatives to address the same. The Board of Director of the Company oversees the risk management Process.

4. Recent Trend and Future Outlook:

The outlook for industry and the Company in the near term can be viewed with cautious optimism. The Indian government has come up with a number of export promotion policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. </p>

High economic growth has resulted in higher disposable income. This has led to rise in demand for products creating a huge domestic market. The domestic market for apparel and lifestyle products, currently estimated at US$ 85 billion, is expected to reach US$ 160 billion by 2025.

The Indian cotton textile industry is expected to showcase a stable growth in FY2017-18, supported by stable input prices, healthy capacity utilisation and steady domestic demand*.

Exchange Rate Used: INR 1 = US$ 0.015 as of January 4, 2018.

Sources: www.ibef.org

Disclaimer: This information has been collected through research and the company is not responsible for any errors in the same.

The Board of the Company has considered setting up of manufacturing facilities of Polyester and polyester blended fabrics in 3 phases of 100 looms each total 300 looms. In the phase-I, 100 water jet looms and other balancing machineries will be installed at a total project cost of about 14 Crores. The project is expected to be completed by June, 2018. The above business decision has following feature:

-Quality Control of product, cost effectiveness, tax benefit, improvement in brand image and attract international market. -Fund for the project will be raised from internal sourced (reserve & surplus), bank loan and preference issue or any other source as may be available. -Land for said purpose will be taken on lease for about 25 years and the company will construct infrastructure facility on it.

The company has also starting digital printing and embroidery.

5. Segment wise or product wise performance:

The company has only one segment i.e. textile trading as on end of financial year. Performance of the Company during the financial year was very well comparing to previous year. Detail of it provided in Director Report and also financial statement attached herewith.

6. Government Initiative:

Some of initiatives taken by the government to further promote the industry are as under:

The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry - Readymade garments and Made ups - from 2 per cent to 4 per cent.

The Government of India plans to introduce a mega package for the powerloom sector, which will include social welfare schemes, insurance cover, cluster development, and upgradation of obsolete looms, along with tax benefits and marketing support, which is expected to improve the status of power loom weavers in the country.

7. Internal Control Systems and their Adequacy:

The Company has adequate systems of internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business.

8. Financial Performance with respect to operational performance:

The Financial performance of the Company for the year 2017-18 is described in the Directors Report under the head operations.

9. Material developments in Human Resources/Industrial Relations front, including the number of people employed:

The Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The company has continued to give special attention to human resources and overall development.

10. Cautionary Statement:

Statement in this Management Discussion and Analysis Report, Describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.

For and on behalf of the Board of Directors

Trident Texofab Limited

Sd/-

Sd/-

Hardik J. Desai

Chetan C. Jariwala

Managing Director

Whole Time Director

DIN: 01358227

DIN: 02780455

Date: 28.05.2018

Place: Surat