Yarn Syndicate Ltd Management Discussions.

We have pleasure in submitting the Management Discussion & Analysis Report on the Companys business.

A) INDUSTRY STRUCTURE AND DEVELOPMENTS

During the year under review, the Company has diversified its business portfolio from export of yam to trading in the domestic market in various kinds of fabrics and linen fabrics products and paper bags. The export of yarn continues to be the companys principal focus of business but due to very difficult export market conditions, the company has not done any export business during the year but is always on the look-out for lucrative export deals. The company has moved into the business of dealing in various kinds of fabric products and linen fabrics products and paper bags.

During the year under review, the company surveyed the yam export market but the export market conditions were extremely difficult. China is the largest importer of cotton yarn and accounting for nearly half of the global imports. However China being the largest buyer of cotton has reduced its cotton purchases sharply thereby significantly reducing its supply of cotton and cotton product from India. This has had a negative effect on the Indian export market.

The company had decided it was more economical to deal in various kinds of fabric products in the Indian domestic market.

Inspite of the difficult export market situation your company Is facing, we are constantly searching for customers in lucrative export markets for yam and at the same time on the lookout for the export of other products whose exports will benefit us in the long run and also doing business in the domestic market.

B) OPPORTUNITIES AND THREATS

With India having a strong yarn and textile industry, the global yam market will always be an opportunity for Indian exporters like your company with decades of experience in the yam export business. Similarly the market in various kinds of fabrics and non-wovens is an opportunity as the market is a stable and growing one in which India has a significant presence.

The biggest threat In yam Is the Chinese market and being a major importer of cotton and cotton products they have significantly cut down on their Imports. This has directly affected the Indian export market for cotton products. Furthermore, China is buying more yam from Vietnam and has considerably reduced its purchases from India. However India is economically stable and can withstand these kinds of challenges.

C) SEGMENT-WISE PERFORMANCE

The Company operates only In one business segment viz. exporting yam and fabric and other activities are incidental thereto. The geographical segments of the company mainly comprises of the exports to various countries.

D) RISKS AND CONCERNS

The biggest risk and concern for the Indian yarn exporters is the dominance of the Chinese market. Another area of concern Is the emerging markets like Bangladesh, Pakistan and Vietnam. Also continued economic stability Is a crucial factor for further growth of the Industry.

E) OUTLOOK

The global market for yam is highly competitive with many established players like China, USA and EU countries. Many smaller countries are emerging for their share in the market and this has led to very slim margins. India has a strong economic base and has an extremely well established textile Industry and an important presence in the global export market.

The domestic market In linens, fabrics and paper bags Is also very promising.

F) ADEQUACY OF INTERNAL CONTROL SYSTEM

The Company has a proper Internal control system, which provides adequate safeguards and effective monitoring of the transactions and ensures that all assets are safeguarded and protected against loss from unauthorized use or disposition.

Moreover, an audit committee of the Board of Directors regularly review the audit plans, adequacy of Internal control as well as compliance of accounting standards.

G) FINANCIAL AND OPERATIONAL PERFORMANCE

Please refer to ‘Performance Review in the Board of Directors Report

H) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS

We firmly believe that safe and healthy working conditions In the offices are as necessary and Important as production, productivity and quality. Our policy requires conduct of activities In such a way as to take foremost account of health and safety of all concerned, besides conservation of natural resources and protection of the environment.

Your organization appreciates the constructive support of Banks, Institutions, Suppliers, Export Promotion Organisations, executives, employees, creditors, service providers and the confidence shown by them In the company. Employer-Employee relations In all the offices of the company were cordial throughout the year under review.

The total numbers of people employed by the Company are 6.

I) CAUTIONARY STATEMENT

Statements In the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations are "Forward looking statements". Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the companys operations Include, among others, economic conditions affecting demand/ supply, the exchange rate of the Rupee vis--vis the U. S. Dollar and price conditions In the domestic and overseas markets, also effect of political situations, change In the Government regulations on Export, tax laws and other statutes and Incidental factors over which the company does not have any control.

For and on behalf of the Board
Registered Office :
86/2/4, S N Baneijee Road,
Kolkata - 700 014
SHEELA PATODIA
Dated : The 29th day of May, 2018 Chairperson and Managing Director