Letter From Chairman

Dear Shareholders

The last few years have been a whirlwind of activities and introspection. A globalpandemic geopolitical tensions supply chain disruptions the rise of cryptocurrenciesand several other public and private upheavals have all attracted attention in recentyears. As the smoke clears and a better image of the future emerges I believe we areapproaching a moment of tremendous opportunity and growth.

Yourorganisationhasdemonstrated incredible resilience and adaptation in the face ofmassive upheaval emerging stronger than ever after devastating catastrophes such as theglobal financial crisis or the pandemic. Unexpected events like these illustrate anorganization's strength and the principles it represents. All of our employees and serviceproviders' health safety and well-being are top priorities for us. Your business isdedicated to continuing to provide a safe working environment for its employees.Simultaneously we continue to operate our factories attempting to contribute to therestoration of economic activity and providing wages to labour and staff

The domestic textile industry which experienced a drop in demand in fiscal 2021 due tothe outbreak of the Covid-19 pandemic is on track to recover in fiscal 2022 thanks tothe reopening of businesses educational institutions and retail outlets as well as anincrease in the vaccinated population. China + 1 sourcing strategy followed all over theworld have led to increase in textile exports from India. Government initiatives like theProduction Linked Incentive plan the establishment of mega textile parks and theextension of the Rebate of State and Central Taxes and Levies scheme are all helping toboost the sector. PLI scheme approved by GOI mandates using 85% man-made fibers which isgoing to accelerate the demand in this segment. 61 projects were approved by GOI in thefirst tranche. The recurrence of Covid-19 infections on the other hand will be acritical metric to watch.

During the year Company's financial performance was affected by the increasing rawmaterial prices increasing global shipping costs & inflation.In FY2021-22 the Companydelivered a Revenue of Rs 29217 lakhs EBITDA stood at Rs 2653 and PAT at Rs 1105lakhs.

Expansion is your Company's primary goal in the current economic environment. Theincreased demand from the home textile segment helped us grow in the difficult times ofCOVID and we continue to be a niche player in SPFY. The present expansion of your Companyis in the POY (Partially Oriented Yarn) and DTY (Draw Textured Yarn) segments. The projectwill cost Rs 58 Cr. in total with Rs 18 Cr. coming from internal accruals and the restcoming from bank borrowings. The project is expected to be finished in 3rd quarter andthe new capacity will be operational by the fourth quarter of FY22-23. With thisexpansion our focus continues to be on improving the operating profits through increasedcapacity utilisations; increasing our share of value-added products and improvingoperational efficiencies."

Our strengths motivate us to provide more valuable and impactful solutions to ourstakeholders. In the coming years I hope to share with you additional milestones on ourjourney. I would like to express my gratitude on behalf of the Board of Directors for yourcontinuous faith confidence and support.