Inani Marbles & Industries Ltd Management Discussions.

Management Discussions and analysis forming part of Directors Report

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.

Indian Economy and Industry Overview

India continues to witness economic reforms in terms of tax regime post introduction of new corporate tax rates and subsequent amendments thereof. This tax regime, being very favorable, is expected to result in improvement bottom line apart from the benefits seen from GST which has translated in logistics and faster movements of goods on one side and indirect tax reforms on the other side. The consolidation of global economy continued during the Financial Year 2019-20 and the global economy ended with a lower benchmark with fears of revival of ensuing trade war between the U.S. and China. In spite of global turbulence, the financial year concluded on a reasonable footing but with an overall negative impact on the industry in varied ways. The investors confidence in this volatile environment was reflected by being bullish and taking an advantage of the correction phase of capital markets during the year under review. And thus, the business growth though subdued is likely to experience good flows in the ensuing times. Infrastructure, high end architectures coupled with real estate development is a must for maintaining such sustained growth and hence is on the highest priority of the Government making it to be the focal point for our economy. Increasing per Capita income resulting due to all round economic high per capita spending affects the sale and off take of our products and we hopefully foresee a bright future in the coming times. The Attack of Covid19 in the country witnessed during the year instilled fear amongst people and its near and subsequent impact needs to be seen as is very uncertain. A vaccine once found will help negate the Covid19 fear and impact and revive Indian economy which will.

Economic Overview

As we write this we enter the third year of the ruling BJP out of its renewed term of 5 years. We believe the government will continue to take very bold and positive steps which shall accelerate the economic growth to higher levels and shall improve ease of doing business and boost the economy. The Indian Economy had turned around dramatically with the real GDP growth rate of 7%, making India one of the fastest growing large economies in the world, but everything got derailed due to the impact of Covid-19 and halted the GDP growth. The World still sees India as a promising economy and expects it to bounce back as soon as the impact of Covid-19 starts fading. The growth in the next financial year is expected to be subdued due to Covid19 impact with predictions for a recovery in the FY21-22 where we could see our early glory returning. The policies of the Narendra Modi Government to transform India through "MAKE IN INDIA" and "AATMANIRBHAR INDIA" initiatives will further yield results with the country emerging as the business hotspot and Foreign Investment destination. We see ourselves as well placed and prepared to seize this opportunity as and when it arises for the growth of our company.

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. The Company expect that productivity and profitability may improve significantly in current financial year due to commencement of commercial production of Quartz Slab which are having huge demand in international Market

Financial and Operational Performance

The table below gives the Companys financial performance for 2019-20 compared with 2018-19. The Financial Results of the company for the year under review are summarized below:

S. Ma Financial Results For the Year Ended 31-03-2020 For the Year Ended 31-03-2019
(Rs. In Lacs) (Rs. In Lacs)
i Income
Revenue from operations 3155.45 3656.58
Other Income 156.11 119.28
Total 3311.56 3775.86
II Expenditure
Cost of Raw material consumed 962.14 877.51
Purchase of traded goods 420.38 327.84
Changes in inventories of finished goods, (37.94) (247.73)
work-in-progress and Stock-in-Trade
Employees Benefit Expenses 192.28 168.18
Finance Cost 177.33 160.69
Depreciation and amortization expense 258.53 281.88
Other expenses 1385.73 2108.04
Total 3358.46 3676.41
Profit for the year before taxes (46.89) 99.45
Tax expenses :
Current Tax 7.82 59.70
Deferred Tax (Net) (23.41) (46.07)
Previous Years Income Tax 0 0
Profit for the Year after taxes (31.30) 85.82
Add : Profit brought forward 3846.41 3780.44
Profit available for appropriation : 3815.11 3866.26
Adjustment Related to Transitopnal
provision contained in schedule II - -
Proposed Dividend 6.51 6.51
Corporate Dividend Tax 1.34 1.34
Transferred to General Reserve 12.00 12.00
Total 19.85 19.85
Surplus carried to balance sheet 3795.26 3846.41

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 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. Your company has capabilities to quickly adopt to the changing market condition and sustain the projected growth in sales and profits.

The Company implement Quartz slab processing unit at our existing unit situated at ARAJI No. 1312, Mataji Ki Pandoli Chittorgarh to utilize the idle space. Company expects that productivity and profitability may improve significantly in current financial year due to commencement of commercial production of Quartz Slab which are having huge demand in international Market.

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.