Nature of Business

The operating environment of Polyester Chips and Yarn segment remained unfavourable since 2021- 2022. With the objective to preserve the value of the plant assets (being in shut down condition), the Management after evaluating various options, decided to sell the assets of the company’s Manufacturing Division at Village Jolwa, Taluka Palsana, District Surat, together with all specified tangible assets, including land, buildings and plant and machineries in relation to the unit and executed the necessary definitive agreements in April, 2022.

Consequent to sale/transfer of the assets, the management after considering various options for possible alternate business, commenced the new activities of trading in commodities and other commodity related business from third quarter of FY23 as covered and permissible under the Object Clause of the Memorandum of Association, while considering the resources and size of the Company.

Commodity trading involves buying and selling commodities via exchanges and hedging them via derivatives. Commodity futures are derivative contracts in which the purchaser agrees to buy or sell a specific quantity of a physical commodity at a specified price on a particular date in the future. Futures are derivative, which are investments that derive their value from the price of another asset, typically called the underlying asset.