Dollar Industries Ltd Management Discussions

Prelude

Established in 1972, as Bhawani Textiles, Dollar Industries Limited has gained recognition as one of Indias foremost manufacturers of innerwear. With a diverse product portfolio that caters to the evolving requirements of men, women, and children, the Company operates in four cutting-edge production facilities located in Kolkata, Tiruppur, Delhi, and Ludhiana. To ensure sustained growth, we rebranded in FY 2019-20. To be future-ready, we took strategic initiatives to create transformational changes so that Dollar could be perceived as a "Brand for All". From expanding spinning capacity to creating Integrated Warehouses in West Bengal, Dollar has envisaged improving capabilities for higher profitability. In seeking omni channel growth, we successfully forayed into the launch of 17 Exclusive Brand Outlets (EBOs) under the Franchise-Owned Franchise Operated (FOFO) model.

Currently, Dollar has a strong presence in all Indian states and has expanded beyond its borders, establishing itself as the most popular Indian innerwear brand in the Middle East and UAE, among other countries.

As a responsible corporate entity, Dollar prioritises environmentally friendly practices and renewable energy sources. The Company has a 6 MW solar power plant at its Tiruppur facility, which has a power generation capacity of 100 Lakhs units per year and is part of the Companys "Green Mission" initiative and plans for another 2 MW which will generate additionally approx 30 Lakhs unit per year.

Global economic review

In its April 2024 edition of the World Economic Outlook, the International Monetary Fund (IMF) underscored the unexpected resilience displayed by the global economy, characterised by sustained growth amidst receding inflationary pressures. The report indicates that the global Real Gross Domestic Product (GDP) expanded by an estimated 3.2% in the calendar year 2023, with projections suggesting a continuation of this growth trajectory at the same rate through the calendar years 2024 and 2025. The IMF attributes this growth momentum to several factors including elevated borrowing costs, the phased withdrawal of fiscal stimuli, enduring repercussions of the COVID-19 pandemic, geopolitical disruptions such as Russias invasion of Ukraine, sluggish productivity growth, and escalating geoeconomic fragmentation.

Moreover, the report highlights a moderation in global inflation from its peak in mid-calendar year 2022, concurrent with the expansion of economic activity, thus mitigating the risk of a -potential global recession. The IMF anticipates a further decline in global headline inflation from an annual average of 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in 2025, with advanced economies expected to converge to their inflation targets sooner than emerging markets and developing economies. Risks to the global economic outlook for 2024 are viewed as broadly balanced, emanating from potential price surges triggered by geopolitical tensions and regional conflicts, such as those observed in Gaza, incidents in the Red Sea, and ongoing warfare in Ukraine, as well as the prospect of core inflation exhibiting a slower-than-expected deceleration and interest rates persisting at levels higher than anticipated.

Conversely, upside factors include the potential for a short-term fiscal stimulus in light of numerous countries holding elections in 2024, expedited monetary policy accommodation, and productivity enhancements facilitated by advancements in technologies such as artificial intelligence. (Source: IMF - World

Economic Outlook, April 2024). In contrast, the World Banks Global Economic Prospects report released in January 2024 adopts a more conservative stance, estimating global Real GDP growth at 2.6% for 2023, with growth forecasts of 2.4% and 2.7% for 2024 and 2025, respectively.

Particulars	Actual 2022	Estimate 2023	Projection 2024	Projection 2025
World Output	3.5	3.2	3.2	3.2
Advanced Economies	2.6	1.6	1.7	1.8
United States of America (US)	1.9	2.5	2.7	1.9
United Kingdom (UK)	4.3	0.1	0.5	1.5
Emerging Market & Developing Economies	4.1	4.3	4.2	4.2
Emerging and Developing Asia	4.4	5.6	5.2	4.9
India	7.0	7.8	6.8	6.5
China	3.0	5.2	4.6	4.1
Emerging and Developing Europe	1.2	3.2	3.1	2.8
Sub Saharan Africa	4.0	3.4	3.8	4.0
Middle East and Central Asia	5.3	2.0	2.8	4.2

Indian economic review

India has ascended to become the worlds fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the Second Advance Estimates of National Income released by the National Statistical Office (NSO) of the Government of India in February 2024, the GDP growth rate for the fiscal year 2023-24 is estimated at 7.6%, an improvement from the 7.0% growth recorded in FY 2022-23. Consumption, constituting 56% of GDP, experienced a modest growth of 3.0% in FY 2023-24. While exports saw marginal growth at 1.5%, imports surged by 10.9%. This growth trend was bolstered by government initiatives focusing on capital expenditure (capex), which facilitated private investment, leading to a robust Gross Fixed Capital Formation (GFCF) growth rate of 10.2% in FY 2023-24, accounting for 34% of GDP. On the supply side, agriculture expanded by 0.7%, manufacturing by 8.5%, construction by 10.7%, and services by 7.5% in FY 2023-24. Notably, within the services sector, ‘trade, hotels, transport, communication, and broadcasting-related services, representing approximately one-third of overall services, grew by 6.5%. (Source: NSO estimates, February 2024).

Indias economy has surged forward, propelled by advantageous demographics and domestic consumer-oriented market, characterised by a burgeoning class of affluent citizens who are increasingly directing their expenditure towards premium brands. Moreover, Indias strategic investments in establishing a scalable, digitized public infrastructure, inclusive of platforms for identity verification, digital payment interfaces, and an open e-commerce network, have positioned the nation to channel future growth through its vibrant small and medium-sized enterprises and burgeoning startup ecosystem.

The forecast for FY 2024-25 remains optimistic. The Reserve Bank of India (RBI) anticipates continued momentum in the manufacturing sector and expects services to surpass pre-pandemic growth levels. Agricultural activities are poised to benefit from an anticipated normal south-west monsoon.

Additionally, private consumption is expected to strengthen, driven by increased rural activity and a rise in discretionary spending among urban households, supported by improving income levels according to the RBIs consumer survey.

Furthermore, credit growth and private investment are projected to rise, buoyed by optimistic sentiments among businesses and consumers, as well as robust corporate and bank balance sheets, which are set to catalyze an upswing in the private capital expenditure cycle. Core inflation is anticipated to maintain a downward trajectory, signaling a broad-based moderation in price pressures.

7%

Indias projected real GDP growth rate in FY 2024-25

Indian Textile & Apparel Industry

Indias textiles sector, one of its oldest industries, is diverse, spanning hand-spun textiles to sophisticated mills. It boasts a strong production base for a variety of fibres, from natural (cotton, jute, silk, wool) to synthetic (polyester, viscose, nylon, acrylic). The sector is largely decentralised, with power looms, hosiery, and knitting dominating. Indias textile industry is unique due to its close ties to agriculture for raw materials and rich cultural traditions. It can produce a wide range of products for various market segments globally. Government schemes like SITP, TUFS, and MITRA Park aim to attract investment and boost employment.

The Indian textile industry encountered several challenges in

2023, including fluctuating cotton prices, diminishing demand, capacity under-utilisation, and the dumping of imported fabrics and garments from China and Bangladesh. Polyester-based knitted fabrics hold a major share of imports in the Indian textile and apparel industry, accounting for more than 60% of total knitted fabric imports.

The Indian government has been actively supporting the textile industry through various policies and initiatives. These include improving infrastructure, promoting exports, reducing compliance burden, and providing financial incentives for investments and research and development (R&D) activities. The Indian textile industry faces competition both domestically and internationally. With the increasing trend of globalisation, the industry needs to adapt and compete effectively in the global market.

Despite the challenges, the Indian textile and apparel industry has significant growth potential. It is expected to grow at a compound annual growth rate (CAGR) of 10% from 2019-20 and reach a market size of US$190 billion by 2025-26. India is the worlds third-largest exporter of textiles and apparel, with a 4.6% share of global trade in the sector.

.

CAGR

10%

Indian Textile and Apparel Industry

Global Share

4.6%

Indian Textile and Apparel Industry

India is the worlds largest cotton producer, with projected output for 2023-24 at 31.6 million bales. The total availability of cotton is estimated at 34.6 million bales, exceeding domestic demand. Cotton production is expected to reach 7.2 million tonnes by 2030, with increasing consumer demand. The textile industry, driven by natural fibres, is expected to grow from $138 billion to $195 billion by 2025. Textile and apparel exports reached $20.01 billion in FY 2023-24, with textile exports at $12.47 billion (April-November). Technical textile exports for 2023-24 were $715.48 million (April-June). The textile industry employs around 4.5 Crore workers, including 35.22 lakh handloom workers.

Structure of the Indian Textile Industry

In contrast to other major textile-producing countries, Indias textile industry is primarily made up of small-scale and non-integrated spinning, weaving, finishing, and apparel-making businesses. This industry structure is the result of government policies that have favoured labour-intensive, small-scale operations over larger-scale businesses.

Only 3% of Indias textile sector output comes from composite mills, which are relatively large-scale facilities integrating spinning, weaving, and sometimes fabric finishing processes, with most of these mills being publicly owned.

Spinning, the process of converting cotton or manmade fibre into yarn, is the most consolidated and technically efficient sector in Indias textile industry, despite having a small average plant size and technology that is out of date when compared to other major producers. The spinning sector includes approximately 1,146 small-scale independent firms and 1,599 larger-scale independent units.

Weaving and knitting, which turn yarns into woven or knitted fabrics, are highly fragmented, small-scale, and labour-intensive. This sector includes approximately 3.9 million handlooms, 380,000 "powerloom" businesses that operate approximately 1.7 million looms, and a mere 137,000 looms in various composite mills.

Fabric finishing, which includes dyeing, printing, and other cloth preparation prior to clothing manufacture, is also dominated by a large number of independent, small-scale enterprises, with approximately 2,300 processors operating in India, including 2,100 independent units and 200 units integrated with spinning, weaving, or knitting units.

Clothing is made by approximately 77,000 small-scale businesses classified as domestic manufacturers, manufacturer exporters, and fabricators (subcontractors).

Source :

1. https://www.investindia.gov.in/sector/textiles-apparel 2. https://www.ibef.org/industry/textiles

Indian Innerwear Industry

The Indian innerwear industry has been experiencing significant growth in recent years. According to a report, the Indian innerwear market was worth H15,870 Crore in 2017 and is expected to reach H 27,000 Crore by 2024, with a continuous annual growth rate (CAGR) of 12%. The market is estimated to be worth H32,000 Crore, accounting for 9% of Indias fashion retail market. By 2024, it is projected to reach H68,270 Crore.

The innerwear market in India is divided into mens and womens segments. The womens innerwear market contributes around 60% to the overall market and is driven by value-added innerwear products. The mens innerwear market, worth H6,330 Crore, is characterised by the presence of numerous Indian and international brands catering to different segments of the market.

While the Indian innerwear market is flourishing domestically, there is still untapped potential for Indian manufacturers in the international market. The global mens innerwear segment is projected to grow at a CAGR of 5.8% to reach $13.6 billion by the end of 2024, and the global womens innerwear market is expected to grow at a CAGR of 6.4% to reach US $55.83 billion by the end of 2024.

The growth of the Indian innerwear industry can be attributed to various factors, including the increasing number of working women, changing fashion trends, rising disposable income, and increased awareness about better fits. Additionally, the demand for premium and branded innerwear is on the rise, with consumers seeking higher-quality and fashionable options.

In conclusion, the Indian innerwear industry is experiencing significant growth and is expected to continue expanding in the coming years. The market is projected to reach H68,270 Crore by 2024, with both the mens and womens segments contributing to its growth. While the domestic market is thriving, there is still untapped potential for Indian manufacturers in the international market.

Source:

1. Phillip Capital : http://backoffice.phillipcapital. in/B ackof f ic e/Re s e archf ile s/P C _ - _ Inner we ar_ Indu s t r y_ Rep or t _(Phillip_ C api t al _ India _ P v t _ _ Ltd.)_20211006143344.pdf

2. https://www.indiaretailing.com/2019/05/29/fashionable-on-the-inside-analysing-the-indian-innerwear-segment/

3. S M I F S : h t t p s : / / w w w . s m i f s . c o m / f i l e s / repor t s/637533164117521492_ Inner wear %20 Industry%20-%20Sector%20Report%20-%20SMIFS.pdf

Indian Athleisure Industry

The Indian athleisure industry is experiencing significant growth and is expected to continue expanding in the coming years. Several factors contribute to this growth, including changing fashion preferences, rising disposable incomes, increasing health consciousness, and a growing participation in sports and fitness activities.

According to https://www.imgaesbof.in/the-inner-comfort-wear-market-a-deep-perspective, the Indian inner wear market accounted for H726.62 billion in 2023 and is projected to reach

H913.06 billion by 2025, growing at a CAGR OF 12.1% between 2023 to 2025. Another report suggests that the market is estimated to reach H 997.8 billion by 2024, expanding at a CAGR of 13.59% during the 2019-2024 period. These figures indicate a positive outlook for the industry.

Athleisure, which combines athletic and leisurewear, has gained popularity in India. It involves wearing sportswear not only for sports and fitness activities but also as casual and comfortable everyday wear. This trend reflects the changing lifestyle and fashion sense of Indian consumers.

The Indian athleisure industry offers a wide range of comfortable and fashionable activewear that meets the high standards of consumers. The market is segmented based on factors such as product, gender, fabric, and distribution channel.

In terms of trends, the industry is expected to see a range of activewear for men that combines tradition with innovation in 2024. This includes unique Indian-inspired prints and high-performance gear designed specifically for the needs of Indian men. Additionally, there is a growing focus on sustainable and eco-friendly materials in the sportswear industry.

The athleisure market in India presents opportunities for entrepreneurs and businesses to establish themselves in the industry. The positive economic conditions increased attention toward fitness, and the demand for fashionable athleisure outfits contributed to the growth prospects of the market.

Its worth noting that the Indian athleisure industry is not without challenges. Sourcing relevant sustainable fabrics can be a hurdle due to the lack of high demand for them in India. However, Indian entrepreneurs are addressing consumer pain points and offering solution-based collections to meet the needs of the market.

Price of athleisure products

K 900-1599

Average ticket size

In conclusion, the Indian athleisure industry is experiencing growth and is expected to continue expanding in 2024. Factors such as changing fashion preferences, rising disposable incomes, and increasing health consciousness contribute to this growth. Athleisure, a blend of athletic and leisurewear, has gained popularity in India. The market offers a wide range of comfortable and fashionable activewear for both men and women. Entrepreneurs have opportunities to establish themselves in the industry, although challenges such as sourcing sustainable fabrics exist.

Company Overview

Established in 1972 as Bhawani Textiles, the brand "Dollar Industries Limited" now dominates the Indian branded hosiery market. Dollar currently provides a comprehensive product portfolio for men, women, and children. Dollar is to build a new spinning mill in Dindigul and a consolidated warehousing facility in Kolkatas Hosiery Park to enhance logistics, provide economies of scale, streamline workforce and output, and increase delivery efficiency. The corporation now runs four production sites.

Dollar launched a 50-year advertising campaign with brand ambassador Mr. Akshay Kumar, with whom the corporation has a ten-year partnership. The Companys Vision 2025 calls for increasing investments in expansion and new product launches. Yami Gautam, a prominent Bollywood actress, has been named the brand ambassador for the Dollar Missy department. Dollar Woman now sells a wide range of womens lingerie products, such as everyday bras, t-shirt bras, sports bras, starter bras, strapless bras, sleep bras, and nursing bras. Dollar aims to grow into new African markets and replicate its success in the Middle East. Mr Saif Ali Khan is the brand ambassador for Dollar Always i.e. Lehar. Mahesh Babu, a renowned Telugu actor, has been instrumental in Dollar Industries Limiteds expansion in southern India. As part of its ‘Vision South India initiative, Dollar Industries aims to increase sales by 50% in the region, targeting 20% of its domestic revenue from the south. Mahesh Babu consistently ranks among the top actors in popularity and net worth, estimated at around $35 million as of 2024. His association with Dollar Industries will be crucial for its growth in the southern region.

Performance Overview

Revenue from Operation: Revenue from Operation of the Company stood at H1,572.27 Crore in FY2023-24, increased by 12.80% compared to H1,393.83 Crore in FY 2022-23. Revenues from the domestic market stood at H1,501.22 Crore and H71.05 Crore from exports.

Operating profit: Operating profit or EBITDA increased by 61.50% during FY 2023-24 to H158.60 Crore from H98.20 Crore in FY 2022-23.

Depreciation: Depreciation for the year under review stood at H21.27 Crore as compared to H17.64 Crore in FY 2022-23 increase of 20.60%.

Finance costs: Finance costs for the year under review remained at H18.49 Crore compared to H14.22 Crore in FY 2022-23.

Other Income: Other Income for the year under review stood at H4.50 Crore as against H4.75 Crore in FY 2022-23.

Net profit: Net profit for the year under review stood at H90.20 Crore compared to H52.45 Crore in FY 2022-23.

Analysis of Balance Sheet

Net worth: The net worth of the Company stood at H783.82 Crore as of March 31, 2024, compared to H708.77 Crore as of March 31, 2023. The net worth comprised of paid-up equity share capital amounting to H11.34 Crore as of March 31, 2024 (5.67 Crore equity shares of H2.00, each fully paid up). The Companys Other Equity for the year stood at H 769.76 Crore.

Loan profile: The total debt of the Company stood at H306.09 Crore, out of which the Company has H4.37 Crore payable in the current financial year. The working capital borrowings of the Company stood at H271.67 Crore outstanding in the cash credit accounts

Total assets: The total assets of the Company stood at H1,346.54 Crore in FY 2023-24 compared with 1,073.48 Crore in FY 2022-23, an increase of 25.43%.

Inventories: Inventories increased by 36.06% to H486.57 Crore during the year under review from H357.61 Crore in FY 2022-23. Inventories comprised of raw materials worth H80.57 Crore and finished goods and work-in-progress worth H405.99 Crore.

*Total loans and deposits: Total loans and deposits amounted to H3.23 Crore.

Current liabilities: Current liabilities stood at H512.12 Crore, comprising of short-term borrowings of H276.04 Crore and trade payables of H182.33 Crore.

SWOT Analysis

STRENGTH

* Strong brand reputation: Dollar Industries Limited has established a strong brand presence in the hosiery sector, known for its quality and reliability.

* Extensive distribution network: The company has a wide network of stores and distributors, allowing it to reach a large customer base.

* Diverse product portfolio: Dollar Industries offers a diverse range of hosiery products, catering to different customer preferences and needs.

* Focus on value-for-money: The company is known for providing affordable products without compromising on quality, appealing to price-conscious consumers.

* Strong customer loyalty: Dollar Industries has built a loyal customer base through its consistent product quality and customer-centric approach.

WEAKNESS

* Limited international presence: Dollar Industries operations are primarily focused on the domestic market, limiting its exposure to international markets.

* Vulnerability to economic fluctuations: The companys performance may be affected by economic downturns and fluctuations in consumer spending patterns.

* Dependence on raw materials: Rising raw material costs can impact the companys profitability and pricing strategies.

Category-wise revenue contribution
Dollar Man	38%
Dollar Women	9%
Dollar Junior	0.1%
Dollar Thermal	5.2%
Dollar Always	42%
Dollar Protect	1.5%
Force NXT	4.2%
Geography-wise revenue contribution
East	23%
West	23%
North	46%
South	8%

OPPORTUNITIES

* Market expansion: Dollar Industries can explore opportunities to expand its presence in untapped markets, both domestically and internationally.

* Product diversification: The company can consider diversifying its product portfolio to cater to evolving customer preferences and trends.

* E-commerce growth: The increasing popularity of online shopping presents an opportunity for Dollar Industries to strengthen its e-commerce presence and reach a wider customer base.

* Innovation and technology: Embracing new technologies and innovations in the hosiery industry can help Dollar Industries stay competitive and attract tech-savvy consumers.

THREAT

* Intense competition: The hosiery industry is highly competitive, with the presence of both domestic and international players, posing a threat to Dollar Industries market share.

* Changing consumer preferences: Shifts in consumer preferences and fashion trends can impact the demand for hosiery products, requiring Dollar Industries to adapt and innovate.

* Economic and political factors: Economic instability, changes in government policies, and trade regulations can pose challenges to the companys operations and profitability.

* Technological disruptions: New technologies and market disruptors can potentially impact the hosiery industry in the medium to long term.

Enterprise risk management

We firmly believe that all businesses involve risks, which can differ in their impact, likelihood, and speed of occurrence. These risks are dynamic and ever-changing, requiring us to continuously monitor the external environment to identify potential risks and assess their impact on our goals. Our main priority is to manage and minimise these risks to acceptable levels. To accomplish this, we depend on the guidance of the Boards Risk Management Committee, which supervises our enterprise-wide risk management efforts. We aim to utilize our resources effectively to transform opportunities into tangible results.

Risk	Mitigation Approach
Safety Risk:
The Company acknowledges the potential safety hazards posed by our manufacturing operations, including the risk of injury to employees who interact with plant, machinery, and material handling equipment.	The company has developed and put into effect an extensive safety strategy, which is thoroughly enforced. We provide frequent personnel training and third-party inspections to reduce the dangers connected with machinery and equipment. With expert advice, we constructed our plants to reduce human involvement with machines. In addition, we have implemented a behaviour- based safety approach at our factories, and all safety occurrences, including risky acts, are reported and reviewed by our management team. These procedures are intended to reduce safety risks and ensure compliance with established safety requirements.
Sustainability risk:
The Companys manufacturing operations involve environmental risks that can impact the ecosystem. Water usage, energy consumption, and hazardous waste generation are among the main concerns.	The company has implemented several initiatives. We prioritise water conservation and replenishment and have invested in solar and wind power facilities to reduceenergyuse.Wedeveloped treatmentplant with effluent zero liquid discharge. These activities are part of our ongoing efforts to promote sustainability and reduce environmental impact.
Statutory compliance risk:
The Company is exposed to the risk of non-compliance with the rapidly changing laws and regulations, some of which are untested in courts and subject to interpretation.	The Company has a well-defined monitor and ensure compliance with relevant rules and regulations. The Company aims to follow all applicable rules and regulations.
Information Security Risk:
The company faces the risk of information security breaches, including cyber-attacks and internal data leakage, which can have a significant impact on our business operations.	The Company follows strong information security protocols, including regular monitoring of security records to avoid hacking attempts. We protect data throughout its life cycle, including creation, storage, transmission, and retrieval.
Demand and Supply risk:
The demand and supply landscape of our industry is constantly evolving, driven by changing customer preferences and economic factors. As a result, there is always a risk of demand fluctuations and supply chain disruptions, which can impact our business operations and financial performance.	The companys product line is diverse, catering to a wide range of customer demographics and lifestyle preferences. We also maintain a flexible supply chain network, allowing us to respond swiftly to changes in demand and supply. In addition, we constantly monitor industry trends and consumer input to identify potential possibilities and dangers and take proactive measures to address them.
Procurement risk:
The shortage of cotton yarn in the domestic market has led to increased prices of Indian innerwear and knitwear products, posing a challenge to our procurement operations.	Over time, the company has developed solid ties with a number of suppliers, allowing it to diversify its raw material sources. Furthermore, we apply tight quality controls and routinely examine the quality of the raw materials we receive to ensure that they exceed our expectations.
Human capital risk:
Non-availability of a competent workforce, high attrition rates, and retention challenges can pose significant human capital risks for companies. Moreover, a high attrition rate can lead to the loss of institutional knowledge and expertise, which can be difficult to replace. The cost of recruiting and training new employees can also add up quickly and impact the companys bottom line.	The Company mitigates this risk by actively understanding employees needs and goals, providing long-term value for them, and prudently allocating resources through scenario planning and risk-reward analysis. The company also prioritises employee involvement to foster a healthy work atmosphere and increase retention.
Currency risk:
There is a risk of adverse impact on the financials of our Company due to fluctuations in the exchange rate of the local currency against the US dollar, as a considerable portion of our raw materials and capital equipment are imported, and we have operations in multiple countries.	The Company monitors exchange rate movements and hedges any open risks. We aim to source raw materials from local sources whenever possible to avoid reliance on imports and mitigate currency concerns. We consider long-term contracts with suppliers and customers to stabilise cash flows and mitigate currency swings.
Geography risk:
Overdependence on a single geographic location poses a potential threat to revenue if the economy of that region experiences a downturn.	The company operates in several regions and markets, both domestic and foreign. We have successfully created a substantial presence in several nations, particularly the Middle East. By spreading revenue streams throughout regions, we can reduce the impact of economic downturns in specific areas. We regularly study market changes and consumer preferences to uncover chances for expansion and diversification, building a stronger and more resilient business model.

Human resources

Throughout the fiscal year, the organisation focused on attracting and retaining top talent through various engagement initiatives. One key initiative involved reinforcing structured interviewing based on competencies to cultivate a talent pipeline aligned with the organisations values. Significant investments were made in talent development and safety measures, emphasizing competency-based learning journeys and organisational values.

The leadership competency framework was integrated into HR processes like recruitment and performance reviews, while functional competency frameworks were created for different functions to drive excellence. The organisation conducted programmes and discussions on safety, health, and the internal network of women, including a detailed study on the challenges women face in sales to foster a more inclusive workplace. As of March 31, 2024, the organisation had a total workforce of 2160 employees, including 1679 male and 481 female employees, with no differently-abled employees.

Corporate social responsibility

in place. Corporate professionals

Since its inception, we have prioritised social responsibility by providing economic, social, and environmental benefits all stakeholders, particularly underprivileged populations. We invested H258 Lakhs in Corporate Social Responsibility (CSR) activities, mostly focusing on education and healthcare

Internal control systems and their adequacy

The Company has appropriate internal control systems for financial reporting for its size and industrial sectors. The Companys internal control policies and procedures aim to provide reasonable assurance in attaining the following objectives:

* The Company strives to ensure that its operations are both effective and efficient.

* The Company places great emphasis on the reliability of its financial reporting.

* The Company is committed to complying with all relevant laws and regulations.

* The Company has measures in place to prevent and detect fraudulent activity and errors.

* Safeguarding its assets is a top priority for the Company.

These systems ensure efficiency and production at all levels, while also protecting the companys assets. The Company follows tight standards for accurate recordkeeping and consistent financial and operational support. The internal team and Audit Committee continuously monitor corporate operations and immediately notify the Board of any anomalies. To maintain growth, the Company examines risks and creates mitigation methods accordingly. to

Cautionary Statement

Certain statements in this report regarding the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements under applicable securities laws and regulations. While these expectations are based on reasonable assumptions, actual results could significantly differ from those expressed or implied.

	Sd/-	Sd/-
	Vinod Kumar Gupta	Krishan Kumar Gupta
Date: May 21, 2024	Managing Director	Whole-Time Director
Place: Kolkata	DIN: 00877949	DIN: 01982914