It is my privilege to welcome you all on behalf of the Board of Directors and theManagement Team of your Company to the 16th Annual General Meeting.
The world is challenging Covid-19 Pandemic which has not left any part of the world toface it. Among the massive impact that corona virus had on the economies textile industryis one of the hardest-hit industries.
However the industry is grappling with major hurdles in the Import & Exports ofraw material Labour force and employment Cash flow constraints and Supply chaindisruption.
Despite the Challeng es the Company has achieved a sales turnover of Rs.3393.96 lakhsin the Financial Year 2019-20 as compared to the sales turnover of Rs. 5787.73 lakhs inthe Financial Year 2018-19 by following the Zero defect policy
Given the unfavourable demand scenario textile firms may not utilise their fullcapacities or may undertake production cuts thus bringing down the overall output oftextiles during FY21.
According to the Clothing Manufacturers' Association of India (CMAI) On an averageIndia exports 20-25 million kg of cotton yarn a month to China. Cotton yarn prices havefallen by 3 to 4 per cent in domestic market as traders anticipate a curtailed demand fromChina due to the prevailing situation there. Further prolonging of the coronavirus willresult in a decline in China's imports of cotton yarn and hence impact the cotton yarnexport business of India. This will divert India's surplus cotton yarn to the domesticmarket further reducing the price of cotton yarn.
In positive news global buyers are turning to India to source textiles from thecountry as China grapples with the deadly coronavirus outbreak. According to the CottonTextile Export Promotion Council (TEXPROCIL)In the medium to long-term some demand fromthe US and the EU markets is expected to shift (though gradually) from China to othermajor garment manufacturers viz. Vietnam Bangladesh India and Combodia as the customerswill like to decrease their dependence on China
We are expecting the Support package from the government and also rebate of State andCentral Taxes for cotton yarn and fabrics since the entire value chain is impacted andalso we are hopeful for getting any financial assistance from the Aatmanirbhar BharatAbhiyan package an
nounced by the Minister of Finance GOI.
The Southern India Mills' Association (SIMA) informed that the Association has sent arepresentation to the Prime Minister appealing him to mandate the banks to provide amoratorium of one year (April 12020 to March 312021) for repayment of principal andinterest amount to the banks to enable the Indian textiles and clothing industry to tideover the crisis. (SOURCE:Indian textile journal)
Going forward the textile industry scenario will depend on how the situation evolves inthe domestic and international markets and faster return to normalcy will enable theindustry to curtail the damages and improve on its growth prospects and only when domesticand overseas markets open and consumer demand comes back.
I express my gratitude to the Statutory and Regulatory Authorities Government ofIndia Securities Exchange Board of India (SEBI) all our Bankers for their continuedtimely support and valuable guidance.
We put our best efforts to overcome all the hurdles and crisis and achieve a highturnover of sale and improve the financial stability to the Company and thanking for yourcontinued support and best wishes.
Regards Upender Kumar Agarwal Chairman