MANAGEMENT DISCUSSION & ANALYSIS REPORT Industry Structure & Development This past year has not brought much respite to the textile industry inspite of the stable Central Government due to policy paralysis. Important legislations are being held up in Parliament due to which investments and outlook for the textile industry haven't changed much from the brvious year. In the year 2015, total textile exports to the world grew by 5.4% to US$41.4 Billion. Exports could do better if there is adequate and timely support given by the Government. At brsent the textile industry contributes 11% of the country's total exports and is one of the largest employers of labour in the Country. The Indian Textile Industry also contributes to 14% to the Industrial Production and 5% to the GDP. Opportunities & Threats The Government's Make in India project will give a much needed impetus to the Indian Textile Manufacturing Industry. At brsent, India accounts for 63% of the textile industry loom capacity and 14% of the textile fibre production. Increase in domestic demands should boost cloth and garment productions. The main threat to the industry is Competition from low cost neighbouring countries like Bangladesh, Vietnam, Indonesia and Pakistan. Financial Performance Total turnover of the Company during the year was 173.29 Lakhs as against 220.50 Lakhs in the brvious year. The turnover decreased by 21.4% compared to the brvious year. Loss before interest, debrciation and taxes was Rs. 136.15 Lakhs. Risks & Concerns The primary risk for the Company is with the unorganized low cost sector. Having to compete with low cost, low quality manufacturers is always a concern. Secondly, import of fabrics is always a direct competitor to the Company. There are currently no significant borrowings and as such the Company is well isolated from financial risks & concerns, especially with the increasing interest rates, Internal Control Systems The Company has suitable internal control systems which ensure safeguarding the Company's assets, promote efficiency and ensure compliance with legal and regulatory provisions. The audit committee is headed by a chartered accountant with over 40 years of experience. The statutory auditors also discuss their comments and findings with the management as well as with the audit committee. For and on behalf of the Board of Directors, Sumeet Mehra Chairman Place : Mumbai Date : 6th August, 2015 |