INDUSTRY STRUCTURE:
Though Textile Industry occupies prominent places in Indias Industrial Development, over the years the Small Scale and Medium Scale manufacturing has come under severe crunch, due to weak demand of the International market and with the increased raw material costs. Your Company moved into Trading activity of Cotton Yarn in domestic market. However, this business too suffered huge losses. As reported in the previous year, the Company sold its Land & building and Machinery, exited the manufacturing activity of Textiles and moved to Trading. Thereafter, the Company explored several options and other business interests.
Considering the business potential in India and abroad, the Board of Directors of the Company has proposed, subject to the approval of the Members of the Company and the Statutory Authorities, to add the new object clauses related to Brewery, Distilleries, Aerated Water and Mineral Water.
STRENGTH, WEAKNESS, OPPORTUNITIES & THREATS:
The Industry in terms of Infrastructure is still lacking. With the rising Per Capital Income, the demand will continue to be robust. The Company will start the new business, subject to obtaining the necessary approval from the members and the Concerned Authorities for Food and Beverages Industry.
INTERNAL CONTROL SYSTEMS AND ADEQUACY:
The Company has sold all the assets. The Policy for the Internal Controls are 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:
During the year under review, the Company has earned total income of Rs.12,70,713/- out of which income from operation is Rs.11,47,040/- and other income is Rs.1,23,676/- as compared to income from operation of Rs.43,10,009/- and Rs.1,19,05,386/- in the previous year respectively. The Company incurred loss after tax of Rs.1,17,31,597/- as compared to a profit after tax of Rs.9,43,41,724/- in the previous year.
SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AS COMPARED TO THE PREVIOUS YEAR:
?? ?Operating profit/loss margin ratio stood at (10.23) % as compared to 21.89 % in the previous year. ?? ?Net profit / (loss) margin ratio stood at (10.23) % as against 21.89 % for the previous year. ?? ?Inventory turnover ratio stood at 2.04 % for the year under report.
?? ?Current ratio for the year under report is 0.11 as against 0.48 for the previous year. ?? ?Debt equity ratio stood at (0.76) as compared to (0.85) in the previous year.
HUMAN RESOURCES:
Post the Sale of the factory premise, the Company has no employees, except the Key Managerial Personnel to attend / meet with the Statutory requirements.
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:
The Board of Directors of the Company, considering the declined performance in the Textile sector with a heavy accumulated losses, resulting in sale of factory premise, has proposed to explore new business opportunities in the Food and Beverages Industries and has proposed to add new Object Clauses in the Memorandum of Association and also proposed to reduce the paid-up Equity Share capital of the Company to reflect the true and fair view by eliminating 80% of the accumulated losses. In this respect the required resolutions have been proposed, including the resolutions for change in the face value of the shares and amendment in the Memorandum and Articles of Association of the Company, in the ensuing Annual General Meeting of the Members of the Company. Your Directors are optimistic to turn around the Company in the years to come with best possible strategies and request and recommend to the Members to approve the proposed resolutions.
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
Sd/- |
P. M. Rao |
Chairman & Managing Director |
DIN: 00197973 |
Date: 08th September, 2025 |
Place: Mumbai |
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