United Textiles Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Managements Discussion and Analysis Report for the year under review, asstipulated under regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") is asfollows:

Industry Structure and Development

i. In the past the industry has suffered due to various waves of COVID 19 break down .But presently the whole country has come out from the adverse effect of lockdown .

Opportunities and Threats

i. In India there could be a positive side for textile business as USA and EU customers who will be looking for alternative for China, may move to other countries such as Vietnam, Bangladesh, India, etc. Hence it is expected that demand will increase in textile fabrics for exports, but we need to ensure that we prepare ourselves to take the advantage of the expected business which might drift away from China.

Segmental Review and Analysis

i. The main Raw Material of our Company is cotton, which is based on Agricultural production of Cotton. The Production is dependent on Monsoon. In Indian climatic condition the monsoon is always an unpredictable factor. Sometimes there is heavy rainfall & sometime the drought situation is created, which affects the production of cotton to a great extent creating heavy fluctuation in raw material prices. However, the company has somewhat managed situation & earned profit during the year.

ii. The immediate focus shall be on improving the liquidity position of the company . It has already improved the liquidity position to some extent further the company will ensure the recovery of the outstanding and making the earliest dispatches of the finished goods inventory to have atighter control on the working capital and reigning in fixed costs to conserve cash.

Risks and Concerns

i. The heavy fluctuation in raw material prices will have negative impact across the industry . Also, there could be short time recessionary pressure due to high finance cost in view of repo rate increase by the RBI and money crunch in the market.

Outlook

i. Overall, the coming years are expected to be a tough for the textile industry and major focus shall be on cost cutting measures, improving productivity, reduction in wastage and efforts on taking quality to next level and deriving effi ciency to make p rodu cts furth er cost competitive.

ii. Further, the company plansto make some structural changes in organization to make it lean and agile and focus will be on giving improved services to customers to retain market share.

iii. However, with our good brand image and network in the market, We expect to be back on track soon.

INTERNAL CONTROL SYSTEMS AND THEIR AD EQUACY

The Company maintains an adequate and effective Internal Control Systems commensurate with its size and complexity. The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed.

HUMAN RESOURCE DEVELOPMENT/ INDUSTRIALRELATIONS:

The industrial relations in all units of the Company continue to be cordial. The skills, experience and passion of our people facilitate deeper customer understanding and engaging relationships and strengthen our brand value. We continue to step up efforts to accelerate our value-based growth strategy and the overall development of human capital. We nurture our people by investing in their empowerment through learning and development, wellness and safety besides providing contemporary workplace facilities. Our underlying belief is that Human Resource Development to dayisaboutnurturing human resources and leveraging human capital towards the achievement of business goals. The Company is committed towards creation of opportunities for its employees that help attract, retain and develop a diverse workforce.