Rajvir Industries Ltd Management Discussions

Overview

The global spread of the coronavirus is continuously impacting the textile industry. As the coronavirus pandemic spreads, so does its impact. There are two ways of looking at the COVID-19 situation and its impact on the industry. The short or near-term impact is that as the country is going through a COVID-19 scare and potential health risk, well witness a fall in sales on account of business being closed.

On the COVID-19 front, India being one of the most populous countries in the world may find itself in a vulnerable spot. Given the negative impact of COVID-19 on the countrys economic activities, IMF has forecasted a GDP contraction of 4.5% for FY 2020-21

Even before the pandemic, India had been heading towards an economic slowdown owing to demand contraction. GDP growth in FY 2019-20 has sequentially fallen from 5.8% in Q4 FY 2018-19 to 5% in Q1 2019-20, 4.5% in Q2 2019-20, 4.7% in Q3 2019-20 and further to 4.2% in Q4 2019- 20. In an effort to stem this slowdown, government announced a slew of interventions last year, the most important of them being a substantial cut in corporate tax rate from 30% to 22% announced in September 2019.

According to a recent survey by the International Textile Manufacturers Federation (ITMF), on an average 8 per cent orders have dropped worldwide and the expected turnover this calendar year will be down by nearly 10 per cent over 2019 figures.

The industry may take a much longer time to recover . It may take time to see businesses back to normal, as estimates of direct losses are difficult to make now and it is also tough to foresee the issues that will crop up later

Opportunities, Threats, Risks & Concerns

Presently, the Indian textile industry is facing a problem to compete in the world textile market. This is because of weaknesses like fragmented infrastructure, rigid labour laws, technology obsolescence and many others.

India has more than 2,000 spinning mills with different spindle capacity so an account of huge competition but our Company trying hard to enhance the our brand.

Internal Control Systems and their Adequacy

The Company has an adequate systems of the internal financial controls The Financial statements are in conforma- tity with the requirements of the Companies Act 2013 and

the company accept accounting Standard. The Management of the Company accepts responsibility for the integrity and objectivity of these financial statements as well as for the estimates and judgements relating to matters not concluded by the year-end. The Company has installed a system of internal controls, which is reviewed, evaluated and updated on an ongoing basis. Our auditors have conducted audits to provide reason-able assurances that the Companys established policy and procedures have been followed.. These financial statements have been audited by M/s K.C Bhattacherjee & Paul, Chartered Accountant Hyderabad, the Statutory Auditors of the Company.

Human Resources

Due to the COVID 19 and due to reduction in the operations, the man power requirement has come down. Our Company is making sincere efforts to bring diversity in the workforce.

Disclaimer

Some of the statements in this Management Discussion & Analysis, describing the Companys objectives, projections, estimates and expectations may be “forward looking statement” within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Companys operation including changes in the industry structure, significant changes in political and economic environment in India, tax laws, import duties, litigation and labour relation