MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Development simultaneously India possesses a wide spectrum of stones, granite, marble, sandstone, limestone, slate, and quartzite. It is amongst the largest producer of raw stone material. Marble deposits are widesbrad in India: concentration in states of Rajasthan, Gujarat, Madhya Pradesh, Haryana, and Andhra Pradesh. Next Gujarat also produces some very fine marble followed by Madhya Pradesh. Rajasthan is the main depository of marble; accounts for over 90% of total marble production in India. Newer varieties of marble are being developed in Bihar, Jammu & Kashmir, Maharashtra, Sikkim, Uttar Pradesh & Bengal. Industry has evolved into the production and manufacturing of blocks, flooring slabs, structural slabs, calibrated - ready to fix tiles, monuments, tomb stones, sculptures, artifacts, cobbles, cubes, pebbles and landscape garden stones. Advent of sophisticated mining machinery & new mining fields has led to increase in marble production. Although India produces machinery, there is an excellent opportunity for exporting machineries for working stone: cutting, sawing, grinding and polishing. Indo-Italian Trade Italy imports blocks and after cutting and processing exports these all over the world including India. Italy imports large amounts of granite from India around. The whole world economy is facing the recessionary trend since past few years. This has affected most of the industries, but the commodities of necessity. As marble is not an essential commodity, marble and related industries have faced a decrease in demand due to decreased purchasing power of consumers. Opportunity and Threats The whole world economy is facing the recessionary trend since past few years. This has affected most of the industries, but the commodities of necessity. As marble is not an essential commodity, marble and related industries have faced a decrease in demand due to decreased purchasing power of consumers. The studies indicate that the demand and supply of marble both have an increasing trend. But at brsent the demand of marble is growing faster than the supplies. The reasons which affectthe demand and supply of marble in the country are explained here: •Increase in Usage of Imported Marble • Decrease in growth rate of construction activities. • Global Recession • International Disturbances • Other Marble Producing Nations • Impact Of Government Policies On Industry • Removal of Excise duty: • Manufacturing Status to Marble Industry • New marble policy Performance of the Company Business performance of the company is directly related with real-estate sector & infrastructure. Presently the market conditions in these sectors are very slow, hence because of sluggish market conditions of the company could not perform well in f.y.2014-15. However, lots of efforts are being taken by the company to improve from the brsent situation of the business. Risk and Concerns The recessional in the international trade during three years hugely affected the construction and real-estate sector in India which affected the flooring industry in a big way. With its major markets including the US and Europe badly hit by recession, the stone industry in the developing countries is clueless on its survival other than seeking government assistance. Risk impact Recent global meltdown in reality and housing sector and Industry downturns might impede infrastructure development in user industries like real estate, SEZs, industrial, urban and marine infrastructure, aviation, adversely affecting the Company's business and earnings. Risk mitigation Over the last several decades, the Indian marble and granite industry has been greatly modernized to meet global standards. Natural and Engineered/Fabricated stones, sculptures and monuments processed in India have been used in large scale by the large infrastructure companies has immensely helped in revival of the marble and granite industry in India as the housing and construction sectors has gained considerable momentum in the year under review. Risk measurement The Company's share in the brmium quality marble flooring industry is likely to increase considerably as it is the only company having processing units in National capital Region, Eastern and Southern India. Internal Control Systems & their adequacy The Company has state of art marble processing plant at Greater Noida in Uttar Pradesh, Gumidipoondi in Tamilnadu and Singur in West Bengal, which are comparable to the best in the Country, equipped with requisite machinery. A strict 100% inspection system is adopted right from selection of rough blocks to final inspection. The Company maintains best quality standards to meet the ever changing expectations of buyers country-wide, be it in terms of product quality or delivery. The Company is concentrating on continual improvement through implementation of ISO 9001:2000 Quality Standards and also total productive maintenance activities, thereby achieving higher productivity and reduced costs. The scope and authority of the Corporate Audit department is derived from the Audit Charter approved by the Audit Committee. The Charter is designed in a manner that the Audit Plan is focused on the following objectives: • Review of the identification and management of Risks • All operational and related activities are performed efficiently and effectively. • Significant financial, managerial and operating information is relevant, accurate and reliable and is provided timely. • Resources are acquired economically, used efficiently and safeguarded adequately. • Employees' actions are in accordance with the Company's policies, procedures, Code of Conduct and applicable laws and regulations. • Significant legislative and regulatory provisions impacting the organization are recognized and addressed appropriately. • Opportunities identified during audits for improving management control, business targets and profit- ability, process efficiency and the organization's image are communicated to the appropriate level of management. • Shareholders' and other Stakeholders' wealth and welfare are brserved, protected and enhanced Statutory Compliance On obtaining confirmation from the various units/departments of the Company of having complied with all the statutory requirements, a declaration regarding compliance with the provisions of the various statutes is made by the Managing Director at each Board Meeting. The legal & secretarial department of the Company ensures compliance with SEBI regulations, provisions of the Listing Agreement. The Compliance Officer for brvention of insider trading ensures compliance with the Company's Guidelines on Insider Trading. Contingent Liabilities Details of contingent liabilities are given in Note 21 of the Notes on Balance Sheet and Profit and Loss Account. Material developments in Human Resources/Industrial Relations front, including number of people employed. The key personnel manning the marble processing unit, mining operations in Orissa, Marketing, Finance, Legal, Planning are technically and professionally qualified. Continuous in-house training programs are conducted in various disciplines, which help in achieving the organizational growth in right direction. The Company maintains cordial industrial relation with its employees and takes all possible care for their welfare. Shareholder value commitment and philosophy The Company expects to protect and enhance shareholder value through several initiatives. The combrhensive nature of the Company's financial and business disclosures reflect its increasing transparency. Cautionary Statement Statements in the Management Discussion and Analysis describing the Company's objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those exbrssed or implied. Important factors that could make a difference to the Company's operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors. |