Bhandari Hosiery Exports Ltd

Dear Shareholders,

I hope this message finds you in good health and high spirits. This message allows me to share your company?s achievements during fiscal year 2023-24. Our aim is to build on our achievements, overcome our challenges, and continue driving growth and innovation.

The Financial year 2024 was yet another year of significant challenges across the globe. Deteriorated global geopolitical situation and economic uncertainty, including higher energy and food prices, mounting inflation rates and volatile markets have impacted all the nations. India withstood the challenges by leaning on high demand & moderate inflation. It was a challenging year for the Textile Industry as a whole. The fluctuation in cotton prices, reduced demand from downstream apparel companies, increase in energy cost, high inventory

Levels, severe competition from competing Countries were some of the challenging factors. Embracing the challenges and opportunities, your company once again demonstrated its risk-bearing abilities by achieving considerable revenue and better profitability with the support of its integral strengths. In spite of the unsettling landscape, Your Company has successfully commissioned new Rotary Printing Project during FY 23-24.

Financial Performance & Capital Expansion: Despite the top line challenges, company has improved the bottom line. In 2023-2024, we have recorded an EBITDA of Rs. 25.35 crore with a turnover of Rs. 267 crore against an EBITDA of Rs.23.42 crore with a turnover of Rs. 283 crore for fiscal year 2022-2023. During the financial year 2023-2024 as part of the company?s value addition initiative, to improve the bottom line, we have successfully commissioned our state of the art Fabric Rotary Printing Plant imported from Austria.

Innovation and Developments: We have successfully set up a separate wing for new products development and deployed a separate budget for it. It has started giving excellent results in our pursuit of value added products to improve the profit margins for the company.

We have invested time and money in improving the core systems by adopting various standards like Sedex, Gots, BSCI, and ISO. It has helped us to achieve flexibility, consistency, reliability, traceability and sustainability through every stage of production. It has also helped us to foster a culture of skill development and talent encouragement which is reflected in the loyalty and dedication of our employees.

We strive to create an environment that promotes the development of people through trust, transparency and empowerment. This includes creating ample opportunities for women, who are central to our vision. We actively encourage their growth and development through training programs, mentorship opportunities and career advancement pathways. By fostering an inclusive workplace, we empower women to unleash their full potential, contributing not only to the success of your company but also to the economic and social progress of our nation.

Responsible Corporate Citizen Corporate Social Responsibility: Sustainability is one of the drivers of our operations. Recognizing the global shift towards greener and more sustainable products, we have pursued sustainable technologies, processes and products. Our transparent financial management practices and corporate governance principles have garnered trust and confidence from our stakeholders, including investors, shareholders and financial institutions. We remain committed to transparent and ethical business dealings, ensuring the long-term sustainability and growth of the organization.

Exciting future opportunities: As we march into FY 2024-2025, I am confident of the long-term prospects for the industry and, in turn your Company as well. This year our focus is to improve the bottom line of the company. We plan to reduce the long term debts and strengthen our working capital further. Company has already taken measures to achieve that by way of infusing Equity through a Rights issue of Rs. 47.98 crore. This will reduce the interest costs of the company which will fuel your company?s growth further.

As I conclude, I would like to extend my heartfelt thanks to our people for their unwavering commitment and to our investors and shareholders for their continued trust in us. Together, we can transform the fabric and apparel industry towards a sustainable and profitable future for all. We will continue to leverage our strengths, drive innovation and explore new avenues for growth. Our commitment to better profitability, customer, shareholder satisfaction and social responsibility will remain at the forefront. Thank you for your continued trust and support.