MACROECONOMIC OVERVIEW
After recovering from the COVID-19 pandemic by a successful vaccination
drive on a world-wide scale, short lived Omicron wave and the Russia - Ukraine war crisis,
the resilience of global economy stood out by maneuvering the challenges in the financial
year 2022-23. Although, the global economy is gradually recovering from the series of
disruptions, according to the International Monetary Fund (IMF), the forecast of global
growth is to fall from 3.4% in 2022 to 2.8% in 2023 and settling to 3.0% in 2024. Global
inflation remained uncomfortably high at 8.7% in 2022, as against 4.7% a year ago with
inflation overshooting the target in an overwhelming majority of countries. However,
amidst the disruptions and the tightening of monetary policy, certain economies are
expected to exhibit resilience.Indias economy registered a strong growth of 7.2% in
2022-23, the highest among major economies in the world, amidst a global turmoil following
the war in Ukraine. As per IMF, India will alone contribute 15% of the global growth in
2023 driven by its demographic dividend, pent-up demand growth, digital infrastructure and
commitment to fiscal consolidation.
The National Statistical Office ("NSO") has placed real GDP
in the year 2022-23 is estimated to attain a level of Rs. 160.06 lakh crore, as against
the First Revised Estimates of GDP for the year 2021-22 of Rs. 149.26 lakh crore. The
growth in real GDP during 2022-23 is estimated at 7.2% as compared to 9.1% in 2021-22.
INDUSTRY STRUCTURE AND DEVELOPMENT
The company is engaged in Single Segment i.e. Minerals Industry by
catering to minerals processing segment through extraction of various types of silica sand
and china clay, mineral raw material etc. These minerals are sometime sold as raw
materials or sold after processing, making value addition to the same as per customer
demands.
Minerals are expected to become a core sector in the nations economy
in terms of generation of employment and revenues, industrial growth, conservation of
energy and natural resources and mainly some unit works as export-oriented unit generating
foreign exchange and indispensable materials in all important sector of the economy. The
products of the Company are mainly accepted in the local market.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
| PARTICULARS |
2022-23 |
2021-22 |
| Revenue from Operations |
6,130.53 |
11,733.26 |
| Other Income |
50.25 |
48.48 |
| Total Income |
6,180.78 |
11,781.75 |
| Total Expenses |
7,127.29 |
10,107.42 |
| Profit/(Loss) for the year before taxation |
(946.51) |
1,674.33 |
| Tax Expenses |
- |
- |
| Profit /fLossl after tax |
(946.51) |
1,674.33 |
| Earnings Per Equity Share(Face Value Rs. 10/- Per Share) |
|
|
| Basic |
(0.18) |
0.32 |
| Diluted |
(0.18) |
0.32 |
The Company has recorded a total income of Rs. 61.80 lacs as against
Rs. 117.81 lacs in the previous year. During the year under review, the Company has
incurred a loss of Rs. 9.46 lakhs as compared to previous year profit of Rs. 16.74 lakhs.
There are no material changes and commitments affecting the financial position of your
Company.
OUTLOOK
General outlook of the Company for the upcoming financial years is
encouraging, progressive & the company with its limited resources has tried to
increase its turnover and profitability in this period. The overall business outlook for
mineral materials including china clay is very encouraging because of the increasing
demand. There is an ever-increasing demand for china clay, silica sand and mineral
materials from various end user for multipurpose and the producers of china clay and
silica sand can grab the local as well as global market effectively with high
profitability. However, the factor of consistency in quality and other services are the
pre - requisites and your company in years to come will try to reach those standards.
Your company will always aim towards striving for supplying quality
products atreasonable prices and to stick to its core business, which has in fact some
positive &upward trends in the years under operation and years to come.
HUMAN RESOURCE
Human resource is considered as key to the future growth strategy of
the Company and looks upon to focus its efforts to further align human resource policies,
processes and initiatives to meet its business needs. The Company makes efforts that
employees are abreast of technological and technical developments. Industrial relations at
all the units and locations are cordial.All employees, from a new joiner to a tenured one,
are provided tailored learning opportunities as per their role, level, and specific focus
area. Employees are equally treated and provided opportunities irrespective of gender,
marital status, religion, race/caste, colour, age, ancestry, nationality, language, ethnic
origin, socio-economic status, physical appearance, disability, sexual orientation, gender
and expression.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
An appropriate and adequate system of internal controls exist in your
company to ensure that all assets are safeguarded and protected against loss or from
misuse or disposition, and that the transactions are authorized, recorded and reported
suitably. Internal control systems are ensuring effectiveness of operations, accuracy and
promptness of financial reporting and observance with laws & regulations.
The internal control is designed to ensure that the financial and other
records of the company are reliable for preparing financial statements and other data, and
for maintaining accountability of assets. Needless to mention, that ensuring maintenance
of proper accounting records, safeguarding assets against loss and misappropriation,
compliance of applicable laws, rules and regulations and providing reasonable assurance
against fraud and errors will continue to remain central point of the entire control
systems.
OPPORTUNITIES, RISKS, CONCERNS AND THREATS:
SWOT Analysis:
| Strengths |
Weaknesses |
| Active sectorial support by the Indian government
Availability of raw material; relatively lower costs and reduced supply lead time
Availability of low cost and skilled manpower which in mayreduce the cost of production
Growing populationand high disposable incomes |
Rising competition Inflexible labour laws
Technological obsolescence |
| Opportunities |
Threats |
| Growing economy and domestic market Higher investments and
FDI opportunities Make in India initiatives by the Government of India |
Emergence of international brands Outbreak
of pandemic like COVID-19, affecting the operations |
| Continuous innovation and technology advancements |
International labour and environmental laws
Geographical disadvantages |
It is a fact that many developments in Indian economy are triggered by
globalization as one
world market are under cut-throat competition. The prime opportunity
lies in meeting customers raised
expectation in terms of high quality with value added products, prompt
response, timely delivery, proper
services and performance and the same opportunities were regularly
grabbed by your company since its
inception.
Your company strives to maintain pace with the fast development in the
Indian economy, tremendous competition and latest in technology and know-how with its
limited resources. The threats, which the minerals industry foresees, are slow down of
Indian economy, myths and misconceptions about minerals and its impact on environment and
competition from the global market. However, India has enough mineral resources with good
quality accepted in international market, which is expected to fetch sizable foreign
exchange intime ahead.
Your company will try to start its activity with value addition
products gradually to make its share in global market and expecting growth in the times
ahead.
Due to rapid changes in the technologies, business dimensions and
complexities, regulatory changes and environmental concerns, competitions from global
players, fluctuation of price and technological obsolescenceand various types of risks
have emerged. All such risks cannot be eradicated completely however can be controlled,
mitigated and managed within the Company in order to balance risk and reward. Risk
management is an important part of the Companys business strategy, and it is smoothly
incorporated into all of the Companys activities. The aim of the Companys framework is
to optimize the risk-return equation while also ensuring strict adherence to all current
and upcoming laws, rules, and regulations that apply to all of the Companys business
activities. Thus, managing risks is not a one-time activity; its an ongoing process. The
Company strives to cultivate a strong and disciplined risk management culture across all
of its business operations and at all levels of the organization.
CAUTIONARY STATEMENT
Statements in this report pertaining to the Companys objectives,
projections, estimates, exceptions and predictions are forward-looking statements subject
to the applicable laws and regulations. These statements may be subject to certain risks
and uncertainties. Important factors that could make a difference to the Companys
operations include changes in Government regulations and tax regime, economic developments
within India and abroad, financial markets, etc. The Company assumes no responsibility in
respect of forward-looking statements that may be revised or modified in future on the
basis of subsequent developments, information or events.
The financial statements are prepared in accordance with the Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read
with Companies (Accounts) Rules, 2014. The management of the Company has used estimates
and judgments relating to the financial statements on a prudent and reasonable basis, in
order that the financial statements reflect a true and fair manner, the state of affairs
and profit / loss for the year. The narrative on our financial condition and result of
operations should be read together with the notes to the financial statements included in
the annual report.
KEY FINANCIAL RATIOS
The same is provided under Financial Statements and forms part of this
Annual Report.
Kachchh Minerals Limited
DECLARATION REGARDING CODE OF CONDUCT
I, Daksh Trivedi, Director of the Company, hereby declare that all the
members of the Board of Directors and the Senior Management personnel have affirmed
compliance with the Code of Conduct of Board of Directors and Senior Management Personnel,
applicable to them as laid down by the Board of Directors in terms of Regulation 26(3) of
the SEBI Listing Regulations for the year ended March 31, 2023.
Place: Mumbai Dated: 24.05.2023
BY ORDER OF THE BOARD
Sd/-
Daksh Trivedi Director DIN: 00185268
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(pursuant to Regulation 34(3) and clause (10)(i) of Para C of Schedule
Vto the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members,
Kachchh Minerals Limited
I have examined the relevant registers, records, forms, returns and
disclosures received from the Directors of KACHCHH MINERALS LIMITED bearing CIN -
L15543MH1981PLC024282and having registered office at Shop No 16, S 2nd Floor, Sej Plaza,
Marve Road, Nr Nutan Vidya Mandir School, Malad (West) Mumbai - 400064 (hereinafter
referred to as "the Company"), produced before us by the Company for the purpose
of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V
Para- C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
In my opinion and to the best of my information and according to the
verifications (including Directors Identification Number (DIN) status at the portal of the
Ministry of Corporate Affairs at "www.mca.gov.in") as considered necessary and
explanations furnished to me by the Company and its officers, I hereby certify that none
of the Directors on the Board of the Company as stated below for the Financial Year ending
on March 31, 2023 have been debarred or disqualified from being appointed or continuing as
Director of companies by the Securities and Exchange Board of India, Ministry of Corporate
Affairs or any such other Statutory Authority.
| Sr. No. Name of Director |
DIN |
Designation |
Date of Appointment In Company |
| 1 Prakashbhai Haribhai Kanani |
02331173 |
Executive Director |
10/06/2021 |
| 2 Kuldip Bhalchandra Vyas |
02529838 |
Non-Executive - Independent Director |
06/04/2022 |
| 3 Daksh Narendrabhai Trivedi |
05232654 |
Executive Director |
10/06/2021 |
| 4 Jagdish Sajan Kandoria |
08705510 |
Non-Executive - Independent Director |
31/03/2020 |
| 5 Devising Tejabha Hathal |
09046307 |
Executive Director |
12/02/2021 |
| 6 Bhaveshbhai Haribhai Kanani |
09282191 |
Non-Executive - NonIndependent Director |
06/04/2022 |
Kachchh Minerals Limited
css
| 7 Indiraben Vasudevbhai Sadariya |
09282192 |
Non-Executive -Non Independent Director |
06/04/2022 |
| 8 Keshubha Lakhubha Hathal |
09282278 |
Non-Executive -Non Independent Director |
06/04/2022 |
| 9 Jaydeep Ghanshyambhai Sangani |
09309677 |
Non-Executive - Independent Director |
06/04/2022 |
Ensuring the eligibility for the appointment/ continuity of every
Director on the Board is the responsibility of the management of the Company. My
responsibility is to express an opinion on these based on my verification. This
certificate is neither an assurance as to the future viability of the Company nor of the
efficiency or effectiveness with which the management has conducted the affairs of the
Company.
Date: 14.08.2023
Place: Mumbai
UDIN:F011066E000802626
Practicing Company Secretary FCS No. 11066 CP No. 16962
WTD/CEO/CFO CERTIFICATION To,
The Board of Directors,
KACHCHH MINERALS LIMITED
Dear Sirs,
A. I have reviewed financial statements and the cash flow statement for
the year and that to the best of our knowledge and belief:
1) These statements do not contain any materially untrue statement or
omit any material fact or contain statements that might be misleading;
2) These statements together present a true and fair view of the listed
entitys affairs and are in compliance with existing accounting standards, applicable laws
and regulations.
B. There are, to the best of my knowledge and belief, no transactions
entered into by the listed entity during the year which are fraudulent, illegal or violate
the listed entitys code of conduct.
C. I accept responsibility for establishing and maintaining internal
controls for financial reporting and that they have evaluated the effectiveness of
internal control systems of the listed entity pertaining to financial reporting and they
have disclosed to the auditors and the a^dpecomiP tttr?, deficiencies in the design or
operation of such internal controls, if any, of which they are aware and the steps they
have taken or propose to take to rectify these deficiencies.
D. I have indicated to the auditors and the Audit committee;
• significant changes in internal control over financial reporting
during the year;
• significant changes in accounting policies during the year and
that the same have been disclosed in the notes to the financial statements; and
• instances of significant fraud of which they have become aware
and the involvement therein, if any, of the management or an employee having a significant
role in the listed entitys internal control system over financial reporting.
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