It is my privilege to welcome you all on behalf of the Board of Directors and theManagement Team of your Company to the 15th Annual General Meeting .
During the Financial Year 2018-19 the Company has achieved a sales turnover of 5787.73lakhs as compared to the sales turnover of 9365.39 lakhs in the Financial Year 2017-18.
We continue to successfully follow the Zero defect policy and I am pleased to informthat throughout the FY 201819 our products were accepted by the clients with minimaldefect.
On the other hand India's textiles sector is one of the oldest industries in Indianeconomy dating back several centuries. The Indian textiles industry is extremely variedwith the hand-spun and hand-woven textiles sectors at one end of the spectrum while thecapital intensive sophisticated mills sector at the other end of the spectrum. Thedecentralized power looms/ hosiery and knitting sector form the largest component of thetextiles sector.The close linkage of the textile industry to agriculture (for rawmaterials such as cotton) and the ancient culture and traditions of the country in termsof textiles make the Indian textiles sector unique in comparison to the industries ofother countries.The Indian textile industry has the capacity to produce a wide variety ofproducts suitable to different market segments both within India and across the world.(SOURCE:India Brand Equity Foundation (IBEF) which is a Trust established by theDepartment of Commerce Ministry of Commerce and Industry Government of India.)
In May 2018 textiles sector recorded investments worth Rs 27000 crore (US$ 4.19billion) since June 2017.The Government of India announced a Special Package to boostexports by US$ 31 billion create one crore job opportunities and attract investmentsworth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020. As of August 2018 itgenerated additional investments worth Rs 253.45 billion (US$ 3.78 billion) and exportsworth Rs 57.28 billion (US$ 854.42 million).As of August 2018 the Government of India hasincreased the basic custom duty to 20 per cent from 10 per cent on 501 textile productsto boost Make in India and indigenous production.(SOURCE:India Brand Equity Foundation(IBEF))
India is the largest producer of cotton in the world and the second largest exporter ofcotton. The Indian government has come up with a number of export promotion policies forthe textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sectorunder the automatic route.
India's value chain starting from production of natural fibre to the production ofyarn fabric and apparel gives India an edge over other countries (SOURCE: Make in IndiaPress Information Bureau.)
Presently the entire textile industry is facing tough time on account of economicslowdown higher cotton prices on account of MSP and stoppage of yarn buying by Chinasince last few months. The recovery in textile industry seems at distance. As apprised thebank in the past we were also exploring various options for sale of business or invitestrategic investors for settling the dues with the Bank but that did not find with anysuccess. Fiscal incentives provided by other states to new units and technologicalupgradation makes the old plant unviable.
The future for the Indian textile industry looks promising buoyed by both strongdomestic consumption as well as export demand. With consumerism and disposable income onthe rise the retail sector has experienced a rapid growth in the past decade with theentry of several international players like Marks & Spencer Guess and Next into theIndian market.
In order to raise funds to settle the liabilities / fund the working capital needs weare currently in serious / advanced talks with an Investor and Asset ReconstructionCompany. They are presently carrying out the due diligence (financial technical legaland business) and are expected to complete the same shortly.
I express my gratitude to the Government of India Securities Exchange Board of India(SEBI) all ours Bankers and all other Statutory and Regulatory Authorities for theircontinued timely support and valuable guidance.
We are confident of achieving a high turnover of sales and thereby bringing greaterfinancial stability to the Company
With your continued support and best wishes I am confident that we will achieve thepinnacles of success.
Upender Kumar Agarwal