Managements discussion and analysis (“MD&A”) focuses on significant factors that have affected Kanani Industries Limited (the “Company”) and its subsidiarys performance and such factors that may affect its future performance. To better understand the MD&A, it should be read in conjunction with the condensed interim consolidated financial statements of the Company for the period ended March 31, 2025, which are prepared in accordance with applicable accounting standard. All amounts are expressed in lacs unless otherwise indicated.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Company is a part of an Industry, which largely operates through unorganized constituents. However, unlike the industry, the Company has attempted to operate through as systematic and organized manner as possible. However, since Diamonds and Jewellery is one industry, in which India holds, commendable position in the world, akin to the software industry, one can look forward to more international involvement coming up in this industry.
OPPORTUNITIES AND THREATS:
Following can be termed as the opportunities / strengths of the Company:
- Induction of widely experienced and specialized personnel on the Board.
- Good combination of technical as well as advisory personnel in the management.
- Some of the world retail majors have decided sometime back to source part of their requirements from India. This shall further the growth of the Diamond industry in India.
- The unfavorable government policies cut throat competition amongst manufacturers and exporters remains major concerns for the Gems and Jewellery Business.
OUTLOOK
Growth of the Gems and Jewellery Industry is expected to be moderate to better in the years to come depending on the policies of the Government. However Gems and Jewellery Industry is seeing robust growth in the years to come. The Growth rate of the Gems and Jewellery Industry is closely related to the growth of the other Sector and hence movements and developments in the other sectors would also indirectly affect the future of Gems and Jewellery Industry.
CHANGES IN KEY FINANCIAL RATIOS:
Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:
*Previous years Figures have been regrouped / rearranged wherever necessary
RISK AND CONCERNS
Looking at the scenario in India in case of gems and jewellery industry, Risks associated with operating in a particular industry and include risks arising from demand changes, changes in customers choice and industry changes. Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. Forex risks could arise from the company being exposed to foreign currency fluctuations which could impact its rupee earnings. Diamond prices usually are not very volatile over a long period of time.
DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY:
The financial performance of the Company has declined in the year under review.
During the year under review, the Standalone total Income was Rs. 51.65 lacs as against Rs. 4775.54 lacs for the corresponding previous year.
Total Comprehensive income for the period was Rs. 6.94 lacs as against Rs. 17.15 lacs in the corresponding previous year.
INDUSTRIAL RELATIONS AND HUMAN RESOURCES:
The companys philosophy of grooming leadership from within, and giving first right of refusal to internal talent for new open positions, inspires higher levels of loyalty to the organization. This has resulted in a very strong, deeply acculturated mid-layer with long tenures in the company. This cohort played a pivotal role in seamlessly integrating new talent in FY 2023 and added significant value through their contributions and contextual knowledge.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which it operates, changes in the Government regulations, tax laws and other statutes, any epidemic or pandemic, natural calamities over which we do not have any direct/indirect control.
For and On behalf of the Board of Directors |
||
| Kanani Industries Limited | ||
| PREMJIBHAI KANANI | HARSHIL KANANI | |
Place: Mumbai |
(CHAIRMAN, WHOLE-TIME DIRECTOR) | (MANAGING DIRECTOR) |
Date: 05/08/2025 |
(DIN : 01567443) | (DIN : 01568262) |
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