MANAGEMENT DISCUSSION AND ANALYSIS Industry conditions and Review of operations The Indian textile industry witnessed reasonable improvement during the course of the year. During the year under review your company was able to maintain its performance due to stable cotton prices, remunerative yam price through dedicated efforts aimed at improving operational efficiency, focus on optimal product mix and effective cost saving practices. Power situation was cause of concern for most part of the financial year. Company Outlook The Company expect the cotton price to remain stable as this is evident from the trend during the last quarter of the financial year 2014-15. Demand for yarn has also seen a marginal increase and indicates a good year ahead as so the prices for yarn and the overall global economic outlook is good . The Company is making all efforts to reduce costs and rationalize operations to have a positive effect. The Company expects to make profit during the current year. Opportunities and Risks The cotton price is subject to climatic conditions and market volatility. The probable impact of climatic conditions in current year is expected to have a bearing on the cotton prices. Exports may partly get affected since European Markets are yet to improve. Power shortage and Labour shortage are major concerns, which could have impact on operations of the Company. Higher inflation and increase in interest rates would have adverse impact on profit margins of the company. Financial performance with respect to operational performance The turnover for the year 2014-15 is Rs.l 1969.01 lakh as against Rs. 11563.22 lakh during the brvious year. The net profit after tax is Rs.331.25 lakh as against a profit of Rs. 404.14 lakh during the brvious year. On behalf of the Board of Directors ANANDKUMAR RENGASWAMY Managing Director Disclaimer Statement in the Management discussion and Analysis Report describing the Company's objectives, projections, estimates, expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results may however differ from those exbrssed or implied. Important factors that could make a difference to the Company's operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates. Changes in government regulations, tax laws and other statutes and other incidental factors. The Company assumes not responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments information or events. |