Shri Dinesh Mills Ltd Management Discussions

A. OVERALL REVIEW OF OPERATIONS

During the year under review, Revenue from Operations has been increased from 5511 Lakhs to 5971 Lakhs but the net profit after exceptional items has been decreased from Rs. 2651 Lakhs to Rs. 2295 Lakhs as compared to the previous year mainly due to increase in various Overheads and lower exceptional revenue from sale of surplus immovable properties.

The Company manufactures Felts (i.e. Technical Textiles) which is Capital & Labour intensive. The quality of the product is well established in the markets and our Company is a debt free company with no pledge of shareholding of

Promoters Group and having sufficient liquidity and therefore, there was no material adverse impact of global slow down on performance of the Company.

B. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

(Rs. In Lakhs)

The various ratio analysis is given in Note No.40 attached to the Annual Financial Statement for the year ended 31st March, 2023.

C. OVERALL OUTLOOK

Looking to the current trend, the sales turnover of the Felts (i.e. Technical Textiles) is likely to be increased but the net profit of the Company would be under pressure considering the present market conditions over the globe. However, the Management would strive to mitigate the adverse impact to the extent possible.

The Company assumes no responsibility in respect of forward looking statements made herein above which may substantially change based on subsequent developments, events, change in the Government policies, exchange rate, inflation and economic scenario etc. over the globe.

D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Internal Audit Department conducts audit of all departments of the Company and places Audit reports/plans before the Audit Committee which reviews adequacy of internal audit functions, audit procedures and its coverage periodically. The minutes of the Audit Committee meetings are placed at the meetings of the Board of Directors from time to time. The Company has adopted the concept of pre-audit and therefore, the mistakes, if any are rectified before the transactions are finally booked in the Books of Accounts of the Company.

E. INDUSTRIAL RELATIONS

During the year under review, the industrial relations have remained cordial. There were 298 employees in the Company as at 31st March, 2023.