The Management at Elegant Marbles and Grani Industries Limited is pleased to present
the Management Discussion and Analysis Report which provides an insight of the Companys
business, Industry structure, developments, outlook, opportunities, concern areas and
performance of the Company with respect to the operations and other relevant information.
This Report forms part of the compliance report on Corporate Governance.
Business of the Company
Elegant Marbles began with a simple idea in 1984: that the country deserved nothing
less than the best when it came to Marbles and Granites. Looking back on earlier trends,
the Company is pleased of continually delivering high-quality products and services that
have consistently exceeded clients expectations, allowing us to establish an enviable
position throughout time. Since its humble beginnings, Elegant Marbles has grown
significantly in terms of quality, volume, and diversity, constantly striving for the
best. Its cutting-edge plant, located on Abu Road in Rajasthan, is capable of handling
massive volumes.
Elegant Marbles continues to select a wide and exotic bouquet of marbles and granites
in a spectrum of combinations to go well with all combinations and interiors, and is
capable of effortlessly producing two-and-a-half million square feet of superior quality
marbles and granite tiles and slabs per year, in keeping with its motto of nothing but
excellence.
A. Economic Overview:
- Global Economy
The growth has taken a fall from 3.4 percent in 2022 to 2.8 percent in 2023, before
settling at 3.0 percent in 2024. Advanced economies have seen an especially pronounced
growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible
alternative scenario with further financial sector stress, global growth declines to about
2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline
inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023
on the back of lower commodity prices but underlying (core) inflation is likely to decline
more slowly. Inflations return to target is unlikely before 2025 in most cases. (World
Economic Outlook 2023). The year saw geopolitical uncertainty with the prolonged
Russia-Ukraine conflict and economic challenges leading to disruptions in the global
supply chain and elevated inflation with increase in commodity and energy prices. This
prompted central banks to aggressively tighten their monetary policy, which further
impacted economic activity.
- Indian Economy and Outlook
The World Bank now fears that the ongoing slump in global economic growth will likely
result in a "lost decade." Despite this gloom, many market analysts believe that
this could well be Indias decade. And there are enough reasons and data to back this
claim. Recent data revisions by India suggest the economy has fared better than previously
believed despite continuing global uncertainties. The International Monetary Fund (IMF)
expects India to grow by 5.9% in FY 2023 24 and by an average rate of 6.1% over the next
five years.
- Government Initiatives
A number of initiatives have been undertaken by the Government of India with the hope
of incentivizing real estate purchases. The announcements made in the Union Budget
2022-2023 will help in creating a thriving atmosphere in the real estate sector. The
government continues to prioritize the affordable housing segment and parallelly looking
at ways to strengthen the existing financing systems to provide liquidity to stuck real
estate projects. In the first week of December, the Government of India extended the
deadline to provide pucca houses to all families in rural India to 2024. The Cabinet
decided that the flagship rural scheme, Pradhan Mantri Awas Yojana-Gramin will be provided
INR 2.17 lakh crore in additional Central and State funding to achieve its target of
building 2.95 crore houses.
B. Industry Structure and Development:
The expansion of the marble business is intimately linked to the countrys real estate
market. During the year under review, Indias real estate sector is witnessing a healthy
increase in demand in 2022-23 and this momentum is expected to hold for the rest of the
year. From commercial spaces to the residential market, the overall market outlook is a
bright one for the real estate industry.
Buoyed by these factors, the sector made a strong comeback. The growth registered in
this year is likely to continue and the year is going to end on a positive note. The
industry is additionally to benefit from a regime of low interest rates, coupled with duty
waivers (in some states), realistic property pricing and attractive offers leading to
affordable synergy.
The rapid growth in real estate, combined with government efforts and a shift in
consumer attitudes, has aided in increasing demand for marble and granite.
- Business Overview:
The past couple of years have been a period of intense action and reflection. We have
seen a global pandemic, geopolitical tensions, supply chain disruptions, the rise of
cryptocurrency and many other public and private upheavals. As the dust settles, and a
clearer picture of the world ahead emerges, the global pandemic has proven to be period of
great opportunity and growth. In the face of widespread change, your company has shown
remarkable resilience and adaptability, coming out stronger than ever, after catastrophic
events like the global financial crisis or the pandemic.
. Your Company took an opportunity to create digital platform for promoting sales
through digital means. The sales picked momentum in FY 2022-23.
Your Company is one of the renowned Marble and Granite Company in India. The Company is
a manufacturer and leading processor and retailer of premium quality Italian and Exotic
marbles, semi-precious gemstones, Quartz Stone Slabs and Granites.
At Elegant, we are committed to deliver "better for you" products maintaining
high quality standards. With around thirty years of experience, product quality and
dedication towards customer relationship, the Company has established remarkable brand
image in the international market particularly in North America, Africa and Europe.
Elegant maintains a stringent 3 step quality control system before shipping. This
broadly includes shade, dimension and surface finish.
Shade Consistency:
At Elegant, we ensure that a high level of color consistency is maintained across all
the shipments by procuring all the material from same mines
Dimensional Accuracy:
The company ensures that the material is strictly manufactured according to dimensions
(size and thickness) specified. By using advanced technology, the Company ensures tight
tolerances
Surface Finish:
The Company has more than eight surface finishing options that can be done on marble,
ensuring that the surface finish meets the quality requirements of the project
The Company has a very high production capacity and excellent distribution network
across the globe. It is known to process more than 200 colors of a granite alone. The
manufacturing and quarrying activities are performed by hand picking blocks and processing
them on gang saws and cutters.
Financial and Operational Performance
The table below gives the Companys financial performance for FY 2022-23 compared with
FY 2021-22: ( in Lakhs)
|
Financial |
Financial Year |
|
Year 2022-23 |
2021-22 |
| Revenue from Operations |
3,564.86 |
2,781.58 |
| Other Income |
219.95 |
200.16 |
Total Income |
3,784.81 |
2,981.74 |
Profit/ Loss Before Tax |
421.98 |
313.26 |
| Less: Current Tax |
117.72 |
47.04 |
| Deferred Tax |
0.40 |
2.42 |
| Excess/(Short) Provision of previous years |
- |
(5.06) |
Profit/ Loss After Tax |
303.86 |
268.86 |
| Other Comprehensive Income |
(157.22) |
1138.7 |
Total Comprehensive Income for The Year |
146.64 |
1407.56 |
Segment-Wise or Product-Wise performance
The Company manufactures and deals only in one segment i.e. Marbles and Granites and
allied products. The information on performance of the same has been provided accordingly.
Opportunities and Threats
We are hoping that due to various government measures opportunities will spring up in
Marble & Granite industry due to huge investments in Infrastructure, modern day
architecture, interior designing, construction reforms and real estate activities. The
constant growth of the Industry is bound to push up the demand for marbles and granites
sizably both in domestic and international markets.
Further, The World is indeed becoming a Global city. Your company believes that niche
opportunities exist in the Global arena which we are targeting to exploit resulting in
positive growth. The company has accordingly built a business model tapping these
opportunities and is also aligning its strategies to utilise opportunities in the domestic
market. Your company deals in special range of Marble and Granites having exquisite
textures, designs and colours for which the overseas and domestic markets, both are very
demanding. Presently, it is one of the few companies which offer all natural stone
products under one roof to the buyers. The demand for top quality natural stone products
is also increasing in the domestic market and the company has setup Retail outlets at
prime location of the countrys financial capital Mumbai so as to cater to the local
demand for quality products. However, the number of natural stone exporters from India as
well as local dealers dealing in imported and other natural stones catering to domestic
market are increasing, thus reducing the margins and making the business competitive. The
availability of manufactured stone products as an alternative to natural stones is also
likely to affect the performance of the company.
The increase in discretionary spending has created a large market and demand for
designer residences and the growth in construction sector has escalated the demand for
marbles and granites both in domestic and international markets.
Your Company suspects all risk associated with pandemic as a threat to the smooth
functioning of the Company business.
Your Company has the necessary expertise and flexibility to quickly adapt to the
changing market condition and capture the growth in sales leading to growth for the
Company.
Threats and Risk Management
Risks are an inherent part of business which cannot be avoided but its robust
identification and management can overcome its effects. The Company has in place a
designated Risk Management policy which is designed to overcome adverse Industry
fluctuations to successfully flourish the business at a reputable pace. The Company
provides updates on risk management to the Audit Committee of the Board of Directors of
the Company on a regular basis.
A comprehensive and integrated risk management framework forms the basis of all the
de-risking efforts of the Company. Formal reporting and control mechanisms ensure timely
information availability and facilitate vigilant and in-time risk management. These
mechanisms are designed to cascade down to the level of the managers so that risks at the
transactional level are identified and steps are taken towards mitigation in a
decentralised fashion.
The Company thereby follows well established and detailed risk assessment and
minimisation procedures, which are periodically reviewed by the Board. The Company has
laid down a well-defined risk management mechanism covering risk mapping, risk exposure
and risk mitigation process.
The decades of experience in this industry is helping us to emerge out as a winner in
all such situations.
Internal Control Systems and their Adequacy
The Company has a sound internal control system, which ensures that (a) its financial
reports are reliable, (b) its operations are effective and efficient, and (c) its
activities comply with applicable laws and regulations. The internal control systems are
further supplemented by internal audit carried out by an independent Chartered Accountant
and periodical review by the Management. The Internal Audit process is designed to review
the adequacy of internal control checks in the system and covers all the significant areas
of the Companys operations.
The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of
the internal control systems and tracks the implementation of corrective actions.
Significant audit observations and corrective actions taken by the Management are
presented to the Audit Committee. To maintain its objectivity and independence, the
Internal Audit reports are submitted to the Chairman of the Audit Committee. Audit
Committee plays a key role in providing assurance to the Board of Directors.
Human Resources
Effective Human Resource Management enables employees to contribute effectively and
productively to the overall company growth and the accomplishment of the organizations
goals and objectives. The Human Resource Management of our organization deals with and
provides leadership and advice for dealing with all issues related to the people in the
organization. They also help in attaining maximum individual development and desirable
working relationship.
The Company considers its Human Resource as the most valuable resource which has to be
nurtured well and equipped to meet the challenges posed by the dynamics of business
developments and marketing. The employees are motivated and promoted with good work
culture, training, remuneration packages and ethical values, which the Company maintains.
The Board of Directors would like to record their appreciation of the efficient and loyal
service rendered by the Companys employees.
The Company has in place a Anti Sexual Harassment Committee and there is a policy in
place, to address issues pertaining to female employees. The Company has total of 59
permanent employees as on March 31, 2023.
Cautionary Statement
Statements in this management discussion and analysis describing the Companys
objectives, projections, estimates and expectations may be ‘forward looking
statements within the meaning of applicable laws and regulations. Actual results may
differ substantially or materially from those expressed or implied. Important developments
that could influence Companys operations include global and domestic financial market
conditions affecting the interest rates, availability of resources for the financial
sector, market for lending, changes in regulatory directions issued by the Government, tax
laws, economic situation, significant changes in political and economic environment in
India, applicable statues, litigations, labour relations and interest costs and other
unforeseen events, if any.
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