Jayatma Industries Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31^st March, 2023.

GLOBAL ECONOMY

* Global growth is projected to fall from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024. The forecast for 2023 is 0.2 percentage point higher than predicted in the October 2022 World Economic Outlook (WEO) but below the historical (2000-19) average of 3.8 percent. The rise in central bank rates to fight inflation and Russias war in Ukraine continue to weigh on economic activity. The rapid spread of COVID- 19 in China dampened growth in 2022, but the recent reopening has paved the way for a faster-than-expected recovery. Global inflation is expected to fall from 8.8 percent in 2022 to 6.6 percent in 2023 and 4.3 percent in 2024, still above pre-pandemic (2017-19) levels of about 3.5 percent.

The balance of risks remains tilted to the downside, but adverse risks have moderated since the October 2022 WEO. On the upside, a stronger boost from pent-up demand in numerous economies or a faster fall in inflation is plausible. On the downside, severe health outcomes in China could hold back the recovery, Russias war in Ukraine could escalate, and tighter global financing costs could worsen debt distress. Financial markets could also suddenly reprise in response to adverse inflation news, while further geopolitical fragmentation could hamper economic progress.

In most economies, amid the cost-of-living crisis, the priority remains achieving sustained disinflation. With tighter monetary conditions and lower growth potentially affecting financial and debt stability, it is necessary to deploy macro prudential tools and strengthen debt restructuring frameworks. Accelerating COVID-19 vaccinations in China would safeguard the recovery, with positive cross-border spillovers. Fiscal support should be better targeted at those most affected by elevated food and energy prices, and broad-based fiscal relief measures should be withdrawn. Stronger multilateral cooperation is essential to preserve the gains from the rules-based multilateral system and to mitigate climate change by limiting emissions and raising green investment.

**The global economy remains in a precarious state amid the protracted effects of the overlapping negative shocks of the pandemic, the Russian Federations invasion of Ukraine, and the sharp tightening of monetary policy to contain high inflation. Global growth is projected to slow significantly in the second half of this year, with weakness continuing in 2024. Inflation pressures persist, and tight monetary policy is expected to weigh substantially on activity. Recent banking sector stress in advanced economies will also likely dampen activity through more restrictive credit conditions. The possibility of more widespread bank turmoil and tighter monetary policy could result in even weaker global growth. Rising borrowing costs in advanced economies could lead to financial dislocations in the more vulnerable emerging market and developing economies (EMDEs). In low-income countries, in particular, fiscal positions are increasingly precarious. Comprehensive policy action is needed at the global and national levels to foster macroeconomic and financial stability. Among many EMDEs, and especially in low-income countries, bolstering fiscal sustainability will require generating higher revenues, making spending more efficient, and improving debt management practices. Continued international cooperation is also necessary to tackle climate change, support populations affected by crises and hunger, and provide debt relief where needed. In the longer term, reversing a projected decline in EMDE potential growth will require reforms to bolster physical and human capital and labor-supply growth.

(Source: *World Economic Outlook, January, 2023, ** World Bank - Global Economic Prospects June 2023)

INDIAN ECONOMY

***Indian economy is projected to raises growth forecast for India, which is set to be fastest growing major economy in 2023. The IMF now expects India to grow 6.1% in 2023 and 6.3% in 2024. China forecasts remain unchanged at 5.2% this year and 4.5% next year. Japan is seen growing 1.4% this year and 1% next year.

(Source: ***The Economic Times 2023)

ORGANISATION PROFILE:

During the financial year under review the company continues to derive its main revenue from cotton and cotton based value chain. Considering the overall economic environment in general and global as well as domestic textile market conditions in particular the company has tried its best to maintain and sustain its operations. The last financial year in particular has been a challenging one on various fronts for the cotton industry. It is expected that the market conditions will stabilize in the coming years.

OPPORTUNITIES AND THREATS:

The countrys domestic market offers much potential for growth and numerous business opportunities. Further the other opportunities like large Potential Domestic and International Market, Investment and Foreign Direct Investment opportunities, increase in the Purchasing Power of Indian Customer, and increase in local demand will help for the growth of the company as well as industry. Jayatma Industries Limited is looking to optimize the most of the opportunity,

The threats like Competition from other developing countries, international and domestic tariff structures, lack of demand for textile sector from developed western countries etc. may pose a threat to progress of industry.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The financial performance of the Company for the year 2022-23 is described in the Directors Report under the head Financial Result.

RISKS AND CONCERNS

Like any other industry, the company is also exposed to risk of competition, government policies, natural factor etc. Many risks exist in a companys operating environment and they emerge on a regular basis i.e. risk of competition, government policies, fluctuation of commodity price, natural factor like change in climate etc. The Company has taken necessary measures to safeguard its assets/interests etc.

INTERNAL CONTROL SYSTEM:

The Company has proper and adequate internal control systems to ensure that all activities are monitored and controlled against any unauthorized use or disposition of assets, misappropriation of funds and to ensure that all the transactions are authorized, recorded, reported and monitored correctly. The Company has adequate working infrastructure having computerization in all its operations including accounts and MIS.

The Company has continued its efforts to align all its processes and controls with leading practices. The Audit Committee also meet the Companys Statutory Auditors to ascertain their views on the financial statements, including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of the internal control and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee. Further, the Company has continued its efforts to align its processes and controls with best practices and has put in place a process wise internal control framework across the Company.

RECENT TREND AND FUTURE OUTLOOK:

Jayatma Industries Limited continues to be involved in the field cotton and cotton value cain. The company is in the process of undergoing capital expansion in the field of weaving with a focus of manufacturing value added products. We expect the capital expansion to complete by end of October.

CAUTIONARY STATEMENT:

Readers are cautioned that the Statements in this Management Discussions and Analysis Report describing the Company objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable security laws or regulations. These statements are based on reasonable assumptions and expectations of future events. Actual results could however, differ materially from those expressed or implied. Factors that could make a difference to the Companys operations include market price both domestic and overseas availability and cost of raw materials, change in Government regulations and tax structure, economic conditions affecting demand/supplies and other factors over which the Company does not have any control. The Company takes no responsibility for any consequence of decisions made based on such statements and holds no obligation to update these in future.

Date: 09th August, 2023	For and on behalf of the Board,
Place: Ahmedabad
	Sd/-
	Nirav Kalyanbhai Shah
	CEO & Director
	DIN:00397336