Management Discussion and Analysis:

(a) Industrial Structure and developments :

Indian Textiles Industry has an overwhelming brsence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and earnings of the country. It contributes about 14% to India's industrial production and 13% to the country's export earnings. The textile sector is one of the largest provider of employment along with agriculture. The Indian textiles industry rebrsents a widely diverse spectrum of activities with the hand-spun and handwoven sector at one end, and the capital intensive sophisticated mill sector at the other. The decentralized power looms, hosiery and knitting sectors form the largest section of the Textiles Industry. The close linkage of the Industry to agriculture and the ancient culture, and traditions of the country make the Indian textiles sector unique in comparison to the textiles industry of other countries. This also provides the industry with the capacity to produce a variety of products suitable to the different market segments, both within and outside the country.

The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach US $ 141 billion by 2021. The industry is the second largest employer after agriculture, providing direct employment to over 45 million and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to GDP, and 14 per cent to overall Index of Industrial Production (IIP). Apparel exports from India have registered a growth of 17.6 per cent in the period April—September 2014 over the same period in the brvious financial year.

(b)Opportunities and Threats

The current market scenario provides good opportunities for growth. There is a Large, Potential Domestic and International Market for the textile industry. The market is gradually shifting towards Branded Readymade Garment and currently we are one of the major player in this sector. The Company is planning to focus more on the ready made garment business and are hopeful to achieve growth in that sector.

The increased disposable income and purchasing power of indian customer opens the doors for growth. This more so with the emerging retail industry and malls provide huge opportunities for the apparel, handicraft and other segments of the industry.

There is greater Investment and FDI opportunities available.

The challenges faced are the Competition from other developing countries. Then to make a balance between price and quality is also a big challenge faced by the Industry. The Cost of production is going up there is a huge capital requirement for new products. There is a threat from the unorganized sector also. These Concerns need to be taken care of and improve productivity continuously.

(c)Segment wise or Product wise performance

The Company has two reportable primary business segment viz.,Manufacturing and Dealing in Textiles and Rental Property. The same has been reported in the notes to the accounts.

(d)Discussion on Financial performance with respect to operational performance.

The company reported a turnover of Rs.51,633.07 Lacs during the year 2014-15 against a turnover of Rs. 47,237.91 Lacs in the brvious year. There was a growth of 9.30% in the revenues of the Company as compared to the brvious year. The Company clocked in a PAT of Rs. 773.48 Lacs during the year 2014-15 resulting in a growth of 107.59% as compared to brvious year.

(e)Human Resource Management

The Company has employee friendly HR policies and attracts the best talent in the Industry. The attrition rates are quite low. The Company's policy of providing on the job training has been instrumental in developing a good work force for the Company.