Inani Marbles & Industries Ltd Management Discussions.

The Management of Inani Marbles & Industries Limited is pleased to present the following Management Discussion and Analysis Report which contains a brief write-up on the industry structure, opportunities and concerns, performance of the company with respect to the operations other information. This chapter on Management Discussion and Analysis forms a part of the compliance report on Corporate Governance.

Economic Overview:

Global Economy

One year into the COVID-19 pandemic, the accumulating human toll continues to raise concerns, even as growing vaccine coverage lifts sentiment. High uncertainty surrounds the global economic outlook, primarily related to the path of the pandemic. The contraction of activity in 2020 was unprecedented in living memory in its speed and synchronized nature.

Strong multilateral cooperation is required to bring the pandemic under control everywhere. Such efforts include bolstering funding for the COVAX facility to accelerate access to vaccines for all countries, ensuring universal distribution of vaccines, and facilitating access to therapeutics at affordable prices for all. Many countries, particularly low-income developing economies, entered the crisis with high debt that is set to rise further during the pandemic. The global community will need to continue working closely to ensure adequate access to international liquidity for these countries.

The swift recovery in China has surprised on the upside while the global economys long ascent back to pre-pandemic levels of activity remains prone to setbacks. The global economy has come back, to a certain extent, from the depths of its collapse in the first half of the year under review. Employment has partially rebounded after having plummeted during the peak of the crisis. This crisis is however far from over. Employment remains well below pre-pandemic levels and the labour market has become more polarised with low-income workers, youth, and women being hit harder. The poor are getting poorer with close to 90 million people expected to fall into extreme deprivation this year.

Output in both advanced economies and emerging market and developing economies is projected to remain below 2019 levels even next year.

Indian Economy and Industry Overview

The outbreak of the novel coronavirus impacted the Indian economy during the first quarter of the year under review. The Indian economy de-grew 23.9 percent in the first quarter of 2020-21, the sharpest de-growth experienced by the country since the index was prepared.

The Indian and state governments selectively lifted controls on movement, public gatherings and events from June 2020 onwards. The result is that Indias relief consumption, following the lifting of social distancing controls, translated into a full-blown economic recovery.

The Government of Indias announcements aims at saving the lockdown battered economy by providing tax breaks, incentives for domestic manufacturing and credit guarantee for loans to MSMEs. RBI announced a slew of measures to address the liquidity concerns of financial institutions by means of targeted longterm repo operations to help ease liquidity of NBFCs, HFCs and MFIs. With IMD monsoon forecast coming at near normal levels, the agricultural sector could turn out to be the lone bright spot as winter crop (Rabi) is being harvested and the impact of this pandemic is not seen across the farmland areas of the country so far.

Industry Structure and Development

Real Estate sector and consumer confidence witnessed a complete turnaround with signs of economic stabilization and moderate growth in global economic performance. Property markets in India began to exhibit signs of revival during this time with the return of liquidity in the real estate sector and firm prices in the recent months, cash flows of realty players improved resulting in renewed construction of stalled projects and a few new launches as well. Clearly we believe that we are entering and exciting new phase of development. We are fully geared to take advantage of the buoyant real estate demand which will generate a huge demand for the companys products.

Emerging out of the world economic crisis with only minor bruises, the industry is poised to enter a growth phase and is on the threshold of a major transformation. In terms of demand, Marble, Granite, Tiles & Stones and quartz slab Industry is fortunately placed and this should spur its growth.

Financial and Operational Performance

The table below gives the Companys financial performance for 2020-21 compared with 2019-20.

The Financial Results of the company for the year under review are summarized below:

Financial Results For the Year Ended 31-03-2021 For the Year Ended 31-03-2020
(Rs. In Lacs) (Rs. In Lacs)
I Income
Revenue from operations 6056.57 3191.88
Other Income 62.62 156.11
Total 6119.19 3347.99
II Expenditure
Cost of Raw material consumed 2422.57 962.14
Purchase of traded goods 614.45 420.38
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade (611.23) (37.94)
Employees Benefit Expenses 360.19 RIGHT>192.28
Finance Cost 238.19 177.33
Depreciation and amortization expense 301.73 258.53
Other expenses 2588.30 1422.16
Total 5914.20 3394.89
Profit for the year before taxes 204.99 (46.89)
Tax expenses :
Current Tax 12.69 7.82
Deferred Tax (Net) 40.18 (23.41)
Previous Years Income Tax 0 0
Profit for the Year after taxes 152.12 (31.30)
Add : Profit brought forward 3795.26 3846.41
Profit available for appropriation : 3947.38 3815.11
Adjustment Related to Transitopnal provision contained in schedule II - -
Proposed Dividend 6.50 6.51
Corporate Dividend Tax 0.00 1.34
Transferred to General Reserve 12.00 12.00
Total 18.50 19.85
Surplus carried to balance sheet 3928.88 3795.26

Segment-wise or product-wise performance:

The company manufactures and deals in Marble/Granites/Stone Blocks, Slabs Tiles, quartz slab and allied products. The Company deals in single Segment of Granite, Marble and stone products.


There are excellent opportunities in Marble & Granite and Quartz slab industry due to large scale investment in Infrastructure and construction activity. The constant growth in construction sector has escalated the demand for marbles and granites substantially both in domestic and international markets and Quartz Slab which are having huge demand in international Market. Your company has capabilities to quickly adopt to the changing market condition and sustain the projected growth in sales and profits.

Business Outlook

The company is proactively responding to the changing business environment and is confident of sustaining its market share by improving competitive positioning in the market. The overall business outlook for the company is promising with improvement in overall economic environment. Efforts towards higher operational efficiencies shall continue. The company continues to examine the possibilities of expansion and shall make the necessary investments when attractive opportunities arise.

Threats and Risk Management

The nature of companys business is such that various risks have to be confronted with not only to successfully exist in the said business but even to grow at a respectable pace. However, these risks are no different than the ones faced by the industry as a whole. 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 proactive 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 decentralized fashion.

Internal Control Systems and their adequacy

The company strongly believes that Internal Control Systems are necessary for good Corporate Governance and that the freedom of management should be implemented through the framework of proper checks and balances.

The Company has in place an effective system of internal controls to ensure that all assets are properly safeguarded and protected and used optimally and financial transactions are reported accurately. The Audit committee and the Board of Directors review the adequacy and the effectiveness of the internal controls at periodic intervals. For better governance the company is in the process of introducing internal audit system.

Human Resources

The Company considers the quality of its human resources to be its most important asset and places great emphasis on training and development of employees at all levels. Communication exercises are treated as continues process to keep the employees informed of the challenges being faced by the Company and also motivate them to take up higher responsibilities, in tune with the requirements of the Company.

In order to sustain the competitive edge, the Company has been taking various initiatives for improving the human resources strength and creating a conducive work atmosphere.

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 affect the Companys operations include a downtrend in the industry global or domestic or both, significant changes in political and economic environment in India, applicable statues, litigations, labour relations and interest costs.