MANAGEMENT'S DISCUSSION & ANALYSIS REPORT a) Industry Structure, Development and Outlook India, which is blessed with unique colors and large deposits of granite, has already claimed its privileged status as the Number one Country for granites so far as colour, variety, quality and pricing are concerned. Despite this, the industry could not perform as expected due to non-availability of good quality blocks for processing, Shortage of power and high dependency on diesel affecting the production as well as the cost of finished goods, lack of proper infrastructure for movement of raw materials and finished goods, Spiraling raw material cost coupled with the continuous increase in other input costs is also hampering growth of the industry. The real challenge lies in getting over these bottle neck and achieving the growth. However the performance of the Company remained satisfactory in comparison to brvious financial years. c) Business performance and Segment Reporting During the year under review, the Company has recorded revenue of Rs.2670.61 lakhs and made a net profit of Rs.230.58lakhs against revenue of Rs.2621.01lakhs and net profit of Rs.253.36 lakhs in the brvious financial year 2013-14. The company is engaged in the business of Granite, which as per Accounting Standard 17 is considered the only reportable business. d) Internal Control System and its adequacy The system of internal control has been established to provide reasonable assurance of safeguarding assets and maintenance of proper Accounting Records and its accuracy. The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are brpared and circulated to Senior Management and action taken to strengthen controls where necessary. e) Outlook: Presently the outlook is very promising. f) Risks and Concerns: a) The product is at once subjected to local, national and international competition. b) Any adverse change in the policies of the Government, Recession etc may further adversely affect the profitability. g) Human resources and Industrial relations Your company continues to have cordial relations with its employees. |