Ventura Textiles Ltd Management Discussions.

INDUSTRY STRUCTURE:

The Cotton Textiles Industry continued to suffer on account of high volatile cotton prices, compared to International prices. Due to MSP prices on Cotton, the industry is unable to compete in the International market.

On the domestic front, there is no sign of improvement due to economic slowdown and competition from Imports from Bangladesh and China.

The Government of Maharashtra continued its support to the Textile Industry with incentives to promote Investments in the State.

OPPORTUNITIES & THREATS :

The Promotional Incentive Schemes has been announced for the Manufacturing activity in the State of Maharashtra. It is bound to get a support and will augur well for the Textile Industry.

With E-commerce in place, offtake of various Textile product in the retail sector is spreading among the middle class that will spur further growth.

On the Export front, a favourable exchange rate and increased demand will encourage the Industry.

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.

FINACIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

On the operational front, the Company has recorded revenue from operations of Rs.12,943,467/- Lakhs as compared to Rs. 21,887,928/- Lakhs in the previous year. The net loss before tax is Rs.50,717,916/-Lakhs as compared to previous years net loss before tax of Rs.14,517,237/- Lakhs.

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

1. Operating profit margin ratio stood at (-264.14)% as compared to (-613) % in the previous year.

2. Net profit / (loss) margin ratio stood at (-264.14)% as against (613)% for the previous year.

3. Inventory turnover ratio stood at 88.99 % for the year under report.

4. Current ratio for the year under report is 1.20 as against 2.01 for the previous year.

5. Debt equity ratio stood at 1.24 as compared to 8.55 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.

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.

Registered Office: For and on behalf of Board of Directors
Unit No. 121, Midas, Sahar Plaza, J. B. Nagar
Andheri (East), Mumbai – 400 059 Sd/-
P . M. Rao
Chairman & Managing Director
Date: 14th August, 2019 DIN: 00197973