ventura textiles ltd share price Management discussions

INDUSTRY STRUCTURE:

Textile Industry has acquired prominent place in Indias Industrial Development. The Industry contributes substantially to Exports and GDP of India. However, due to financial constraints your company has not been able to operate normally. Due to fall in international cotton prices, the domestic cotton prices have also decreased. However, the cotton prices during the year were volatile. However cotton yarn prices did not increase in tandem, thus putting the spinners in a disadvantage due to squeeze in margins, which led to non-operational status of the factory premises for major part of the year.

STRENGTH, WEAKNESS, OPPORTUNITIES & THREATS:

The Indian Textile Industrys major strength is of its Cotton production and with the abundant skilled manpower, the industry is at cost advantage, compared to other major textile producers.

The Industry in terms of Infrastructure is still lacking in quality Power at competitive price. With the rising Per Capital Income, the demand will continue to be robust.

INTERNAL CONTROL SYSTEMS AND ADEQUACY:

The Company has -Internal Controls in place for safeguarding all its assets from unauthorized use or disposal. Adherence to Internal Control Systems is ensured by detailed Internal Audit Program so that the assets are correctly accounted for and business operations as per laid down policies and procedures. The Company has an Audit Committee of the Board of Directors, which meets regularly to review, inter alia, risk management policies, adequacies of internal controls and the audit findings on the various functions of different segments of the business.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

On the operational front, the Company has recorded revenue from operations of Rs.13,35,32,024/- as compared to Rs. 16,16,57,988/- in the previous year. The net loss before tax is Rs.4,00,34,866/- as compared to previous years net loss before tax of Rs.1,63,36,068/-.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AS COMPARED TO THE PREVIOUS YEAR:

1. Operating profit/loss margin ratio stood at (0.10) % as compared to 0.13 % in the previous year.

2. Net profit / (loss) margin ratio stood at (0.09) % as against (0.10) % for the previous year.

3. Inventory turnover ratio stood at 3.70% for the year under report.

4. Current ratio for the year under report is 0.10 as against 0.75 for the previous year.

5. Debt equity ratio stood at (0.33) as compared to (1.53) in the previous year.

HUMAN RESOURCES:

The Company is deliberating policies benefiting both workers as well as the stakeholders of the Company in the proposed modernization plan of spinning.

HEALTH AND ENVIRONMENT:

Your Company recognizes environment protection and management as one of its highest priorities and every effort is made to conserve and protect the environment. The Company has been involved in ensuring green surroundings in its industrial location.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has consistently followed a treatment that has been prescribed in Indian Accounting Standards (Ind AS) in the preparation of financial statements and the same shows true and fair view of the financial statements.

CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be ‘forward-looking statements within the meaning of applicable Securities Laws and Regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.

For and on behalf of Board of Directors

Registered Office:

Unit No.121, Midas, Sahar Plaza, J. B. Nagar

Andheri (East), Mumbai 400 059

Sd/-

P. M. Rao

Chairman & Managing Director

DIN: 00197973

Date: 12th August, 2023

Place: Mumbai