Today's Top Gainer
Note:Top Gainer - Nifty 50 More
MANAGEMENTS DISCUSSION AND ANALYSIS
India today, is a fast emerging economic super power. With a population of a strong 300 million and the world s largest middle class population, it unleashes the latent strength of popular consumerism while reshaping both business & the way of life. With the surging trend in all sectors, International Trade Journals have rightly billed India as one of the fastest growing economies in the world. Strong andbuoyant demand, increasing purchasing power in the hands of younger population and overall structural and inclusive growth on the macro-economic front acted as external impetus contributing to this growth.
A. INDUSTRY OVERVIEW
India Heritage in Textiles
1.Indian textiles have a legendary heritage through the ages. Some of the best attires of Greeks & Romans were draped with Indian textiles. European settlers exchanged silver & gold for Indian textiles, which became the fashion statement of the period. Calico, Pajamas, Gingham, Dungaree, Chintz & Khaki these apparel names are Indian contributions to the English language.
1. Indian Textile Industry An overview
1.1 The Polyester/ Viscose industry is one of the key industries in the Indian economy and India is today one of the leading countries in the world as far as trade is concerned.
Though new opportunities are rapidly emerging India s future position will largely depend on how effectively the Industry and Government are able to resolve core issues and take advantage of an increasingly fragmented industry structure. The Industry, which is one of the oldest in existence, has promoted economic development even in far-flung areas of the country, both urban and rural. Two of the highly developed metropolises of Modern India like Mumbai, Surat and Ahmadabad grown over the years have the main business base of textile industry.
1.2 Thanks to the fast growing consumer class and increasing disposable incomes, per capita domestic consumption of textiles & apparels is expected to have a good volume growth.
1.3 India s cotton textile & garment industry has immense export potential. Cost competitiveness backed by international quality is driving the penetration of Indian basic yarns and grey fabrics in global commodity market, as a result of which apparels can be manufactured in relatively small batch lots. This flexibility offers larger variety of casual wear and leisure garments at cost effective levels.
1.4 Besides natural fibers like cotton, jute & silk, synthetic raw material products such as polyester staple fiber, polyester filament yarn, acrylic fiber and viscose fiber are produced in a mass scale. That presents the wide canvas of the Indian textile scene with wider opportunities.
B. INDUSTRY STRUCTURE AND DEVELOPMENT:
Great changes are taking place in the global industry, and as the company has established its position in the Indian Economy and also restructuring itself to fit in the competitive market.
Polyester markets faced challenges during the year as capacity growth outpaced demand growth. The global overcapacity has forced a few large producers to shut operations at some in USA and Europe in past years.
Company turnover has shown increase in turnover in comparison to last year. The results of the Company for the year under review bear a witness to the efforts of the Board in this unfavorable market conditions and heavy competition.
C. FUTURE PROSPECT / BUSINESS PLANS OF THE COMPANY
During the year Yarn & Thread, was the thrust areas of business for the Company.
The Company s Yarn and thread products are very well accepted due to the ISO certification, quality improvement and timely delivery policy. The company has concentrated on its goals of consolidating and strengthening its marketing network, delivering quality products and cutting cost wherever possible. Company is considering venturing into some other profitable line of business.
Sustained growth story of the Indian economy promises to augur well for the businesses in general. Your Company is well-poised to explore opportunities which may arise due to all-round growth. Its strong expertise in core areas, strength of its well-positioned brands, wider and deeper penetration in the growing markets in tier II and tier IIIcities are the strengths which are expected to enable your Company to continue to move ahead on its growth trajectory.
But rising inflationary pressures, weak recovery, volatility in raw material prices, tighter fiscal and monetary policies and possibility of slower growth rate of Indian economy are the key concerns on the macroeconomic fronts which may have an impact on your Company s operations in the ensuing year. Your Company, however, is well-placed to mitigate the risks. It s strong presence in the domestic market, well-established brand and resilient distribution network, are expected to stand tests of time. On the strengths of these, your Company, therefore, expects good growth in the ensuing year.
D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The company has a proper and adequate system of internal control to ensure that all assets are safeguarded and protected against any loss from unauthorized use or disposition and that transaction are authorized, recorded and reported correctly. The Company s internal control systems are periodically reviewed by the management together with the Audit Committee of the Board. The emphasis of internal control prevails across functions and processes, covering the entire gamut of activities including finance, supply chain, distribution, marketing etc.
F. HUMAN RESOURCES DEVELOPMENT/INDUSTRIAL RELATIONS:
The Company recognizes the need for continuous growth and development of its employees in order to provide greater job satisfaction and also to equip them to meet growing organizational challenges. Industrial relations have continued to be harmonious at all units throughout the year. Measures for safety of employees, Welfare and development continue to receive top priorities.
G. RESEARCH & DEVELOPMENT
The company has been carrying out research and development in the following specific areas.
1. To improve the breaking strength and tenacity of the thread.
2. To reduce the elongation on the thread.
3. To reduce the shrinkage of the thread.
4. To make the yarn anti-microbal.
5. To make the yarn fire resistant.
H. THE FINANCIAL AND OPERATIONAL PERFORMANCE:
The financial statement is in confirmation with provisions of the Companies Act, 2013 and applicable accounting standard recommended by the Institute of Chartered Accountants of India. The financial statement reflects the genuine desire for the transparency and best judgment for the estimates made on prudent and reasonable bases to correctly reflect the true and fair affairs of the company.
I. SEGMENT WISE PERFORMANCE:
Presently, company is dealing in single segment activity namely Wholesale Yarn Trading activity.
J. CAUTIONARY STATEMENT:
Statements in this report on Management Discussion and Analysis describing the
Company s objectives, expectations or predictions may be forward looking statements within the meaning of applicable security laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could however differ materially from those expressed or implied.
Important factors that could make a difference to the company s operation include demand and supply conditions, finished good prices, raw materials cost and availability, changes in Government regulation and tax structure, economic developments within India and the countries with which the company has business contacts and other factors such as litigations, Industrial relations of India and compensation paid during the year.
The Company assumes no responsibility in respect of forwarded looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events of the Company.
|For and on behalf of the Board|
|Akil A. Rassai|
|Place : Mumbai|
|Date : May 30, 2018|