Mohit Industries Ltd

Dear Stakeholders,

I hope that you, your families, and loved ones are safe and doing well. I write to you amidst uncertain times. The global spread of COVID-19 and India's lockdown have created an economic environment filled with uncertainty and risk. Our first priority has been to ensure that our workforce is safe.

I am pleased to share with you an update on your Company's performance for FY2022. The year saw a challenging business environment with lower GDP growth, compared to the previous years and witnessed a slowdown in consumption. The novel coronavirus has affected not just human health but severely impacted businesses and the society at large. Against this backdrop, your Company has delivered competitive, profitable and responsible growth.

The fiscal 2021-22 witnessed significant challenges as the global as well as the Indian economy continued to be affected by several macroeconomic factors. Amidst a challenging environment, your company continues to grow, backed by a robust business model and its strategic ability to navigate through troubled times. To retain our competitive advantage and consistently deliver value to all our stakeholders, we continue to focus on investments for research and development, technological enhancement and quality improvement to sustain profit margins and increase operational efficiency.

During the year, Your Company recorded total revenue of 16,986.16 Lacs against Rs. 15,119.88 Lacs in the previous year, representing a increase of 12.34% during the year and Profit before Tax Rs. 36.23 Lacs as compared to Rs. 103.90 Lacs during the year. Total Comprehensive Income during the year Rs. 598.10 lacs as compared to Rs. 86.59 lacs in the previous year.

The textile industry is going through multiple changes from different dimensions which are changing global and regulatory regime and there is no stopping to the increasing levels of competition. The company is diligently striving to provide complete fabrics by enrooting new product lines and gaining a deep understanding of consumer preferences through every passing year.

Your company has never intended to grow at an unsustainable & erroneous rate, by opening stores after stores but rather grow at a convincing rate, therefore, your company strategically plans and making sure that it reaches a wider section of people, and create value for its esteemed shareholders.

The Company provides its utmost attention towards the sustainability and protection of the environment and therefore the entire functioning of the plant is planned in such a manner that causes the least or no harm to the purity and beauty of our ecosystem. The Company also makes sure that it complies with all its official obligations relating to the environmental aspects.

However, as your company is involved in textile business, and due to the nation-wide lockdown, the production and demand of textile product was reduced, it did cause a short-term impact on the working, but a surge in demand was witnessed in the unlocking phase. The demand of products is expected to rise with the improving conditions.

Hereby, on behalf of the company, I would like to assure that your company does not foresee any impact in respect of its existing contracts and agreements and its long-term sustainability is expected to remain unharmed.

I would like to take this opportunity to thank each and every employee as well as others who are associated with Mohit Industries Limited in any way and also our partners across the value chain for their commitment and service to us. Most importantly, I would like to thank you, our shareholders, for our overwhelming trust, support and confidence in Mohit Industries Limited.