Managements discussion and analysis of the financial condition
and results of operations include forward-looking statements based on certain assumptions
and expectations of future events. The Company cannot assure that these assumptions and
expectations are accurate. Although the Management has considered future risks as part of
the discussions, future uncertainties are not limited to Management perceptions.
OVERVIEW
The Financial Statements are prepared in accordance with Indian
Accounting Standards (Ind AS) under historical cost convention on the accrual basis as per
the provisions of the Companies Act, 2013 (‘the Act) (‘to the extend
notified) and the guidelines issued by the Securities and Exchange Board of India
(SEBI). The Ind AS are prescribed under Section 133 of the Act, read with Rule 3 of the
Companies (Indian Accounting Standard) Rules, 2015 and relevant amendment rules issued
thereafter. Accordingly, Financial Statement for the year ended March 31, 2023 have been
prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013
and other accounting principles generally accepted in India. The management of the Company
accepts responsibility for the integrity and objectivity of these financial statements
SALES
During the year ended March 31, 2023, your company has achieved gross
sales of Rs. 13,241.98 Lakhs in the current financial year as against Rs. 8,852.59 Lakhs
during the previous financial year.
FORWARD LOOKING STATEMENTS
This MD&A includes information that is forward-looking in nature.
Such statements concern the future earnings of the Company, its operations, its financial
results and its financial situation. Such forward-looking statements can be identified
through use of expressions such as “believe”, “foresee”,
“anticipate”, “estimate”, “expect” and other similar types
of terms. Such statements are based on the information available at the time that they
were made and on the good faith of management according to information available at this
time. The statements include an element of uncertainty and the actual results may be
significantly different from the assumptions and estimations described in the forward
looking statements. The actual results will be affected by numerous factors over which the
Company has no influence. Consequently, we recommend against placing undue trust in such
forward-looking statements since future events and actual results may differ significantly
from our forecasts.
The Industry: Opportunities & Threats
The Companys main business is cutting, finishing and trading of
Imported Marbles, but it can be done only after the raw material has been purchased /
imported.
Marble City India is exposed to risk of price fluctuation on raw
materials as well as finished products in all its products as due to import of raw
materials it has the risk of delaying or loss in the shipment which may cause rise in the
price of the raw materials and finished goods too. Due to increase in the Import tariff or
import duties it also affects the flexibility of the prices of the raw materials.
Segment-wise or product-wise performance:
The Company has only one segment i.e. Marble Blocks/ Slabs
Business Outlook and Overview:
The main business of the Company is to Manufacture and Trading of
Imported Marbles and Slabs. The Companys strategy is to strengthen its business with
the objective of long term growth. Its growth depends on the development of the Real
Estate Sector. Now a days Real Estate Sector is developing day by day and the demand
for the Imported Marbles also increasing day by day. The Companys Import is based on
the Government policies as laid by them.
Risks and Concerns:
The major risk is frequent increase in price of few raw materials which
can increase cost of product and can make few products unprofitable unless the increase is
passed on to the user which may at times be difficult due to stiff competition. In
addition, significant competition in key products could also affect market share and
profitability of the Company.
Internal Control Systems and their adequacy:
The Company has a proper and adequate system of internal controls to
ensure that all the assets are safeguarded, protected against loss from unauthorized use
or disposition and that transactions are authorized, recorded and reported correctly. The
company conducts audit of various departments based on an annual audit plan through Senior
Executive of the Company along with the head of finance department. The views of the
statutory auditors are also considered to ascertain the adequacy of the internal control
system.
Material development in Human Resources:
There has not been any major development on the human resources front.
The industrial relation continues to be cordial during the year 2022-2023. The number of
permanent employees on the rolls of Company as on 31st March, 2023 was 38.
Significant key financial ratios:
Details of significant changes (i.e. change of 25% or more as compared
to the immediately previous financial year) in key financial ratios, along with detailed
explanations thereof-
Particulars |
2022-23 |
2021-2022 |
Change in %age |
Debtors Turnover |
7.73 |
3.79 |
103.89 |
Inventory Turnover |
0.58 |
0.74 |
-22.04 |
Interest Coverage Ratio |
1.36 |
1.37 |
-0.83 |
Current Ratio |
2.29 |
1.97 |
17.17 |
Debt Equity Ratio |
1.31 |
0.97 |
36.17 |
Operating Profit Margin (%)* |
1.76 |
2.10 |
-0.34 |
Net Profit Margin (%) |
0.68 |
0.74 |
-0.07 |
* Operating Margin is defined as profit Before Taxes and Depreciation
(A) DEBTORS TURNOVER RATIO: -
The debtors turnover ratio is an accounting measure used to quantify a
companys effectiveness in collecting its accounts receivable, or the money owed by
customers. This ratio measures the efficiency of the company in collecting its revenue.
Higher Debtors Turnover Ratio indicates that the companys
collection of Trade Receivables is efficient and that the company has a high proportionate
of quality customers that pay their debts quickly.
(B) INVENTORY TURNOVER RATIO: -
Inventory turnover ratio is the rate at which a company replaces
inventory in a given period due to sales. Calculating inventory turnover helps businesses
make better pricing, manufacturing, marketing, and purchasing decisions. Well-managed
inventory levels show that a companys sales are at the desired level, and costs are
controlled. The inventory turnover ratio is a measure of how well a company generates
sales from its inventory.
The higher the inventory turnover, the better, since high inventory
turnover typically means a company is selling goods quickly, and there is considerable
demand for their products.
(C) INTEREST COVERAGE RATIO: -
The interest coverage ratio measures how many times a company can cover
its current interest payment with its available earnings. In other words, it measures the
margin of safety a company has for paying interest on its debt during a given period.
Higher the Ratio the more poised is the company to its interest on
debts during a period
(D) CURRENT RATIO: -
The current ratio measures a companys ability to pay current, or
short-term, liabilities (debts and payables) with its current, or short-term, assets, such
as cash, inventory, and receivables.
The higher the current ratio, the more capable a company is of paying
its obligations because it has a larger proportion of short-term asset value relative to
the value of its short-term liabilities.
(E) DEBT EQUITY RATIO: -
The debt-to-equity ratio shows the proportion of equity and debt a
company is using to finance its assets and signals the extent to which shareholders
equity can fulfill obligations to creditors, in the event of a business decline.
A low debt-to-equity ratio indicates a lower amount of financing by
debt via lenders, versus funding through equity via shareholders. A higher ratio indicates
that the company is getting more of its financing by borrowing money, which subjects the
company to potential risk if debt levels are too high.
(F) OPERATING PROFIT MARGIN (%): -
An operating margin represents how efficiently a company is able to
generate profit through its core operations. Operating Profits Margin is a good indicator
of how well it is being managed and how efficient it is at generating profits from sales.
It shows the proportion of revenues that are available to cover non-operating costs.
Higher ratios are generally better, illustrating the company is
efficient in its operations and is good at turning sales into profits.
(G) NET PROFIT MARGIN (%): -
Net profit margin measures how much net income is generated as a
percentage of revenues received. Net profit margin is one of the most important indicators
of a companys overall financial health. Net profit margin is one of the most
important indicators of a companys financial health. By tracking increases and
decreases in its net profit margin, a company can assess whether current practices are
working and forecast profits based on revenues.
A high net profit margin means that a company is able to effectively
control its costs and/or provide goods or services at a price significantly higher than
its costs.
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For and on behalf of the Board |
Place: New Delhi |
|
|
Date: 28th August 2023 |
|
|
|
Sd/- |
Sd/- |
|
Saket Dalmia |
Amit Dalmia |
|
(Managing Director) |
(Director) |
|
DIN: 00083636 |
DIN:0003646 |
FORM NO. AOC-2
(PURSUANT TO CLAUSE (H) OF SUB-SECTION (3) OF SECTION 134 OF THE ACT
AND RULE 8(2) OF THE COMPANIES (ACCOUNTS) RULES, 2014
Form for disclosure of particulars of contracts/arrangements entered
into by the company with related parties referred to in sub section (1) of section 188 of
the Companies Act, 2013 including certain arms -length transaction under third proviso
thereto.
1. Details of contracts or arrangements or transactions not at
Arms length basis. There were no contracts or arrangements or transactions entered
into during the year ended March 31, 2023 which were not at arms length basis.
2. Details of contracts or arrangements or transactions at
Arms length basis.
The Details of material contracts or arrangements or transactions at
Arms length basis for the year ended March 31, 2023 are as follows:
Name of related party
& Nature of Relationship |
Nature of contracts/
arrangements / transactions |
Duration of the
contracts/ arrangements / transactions |
Salient terms of the
contracts or arrangements or transactions including the value, if any |
Date of approval by the
Board |
Amount paid as advance/
repayment |
Mr. Saket Dalmia, KMP |
Services |
-- |
Remuneration & Rent |
-- |
-- |
Mr. Amit Dalmia, Director |
Services |
-- |
Remuneration & Rent |
-- |
-- |
Mr. Raja Ram |
|
|
|
|
|
Dalmia, Relative |
Services |
-- |
Salary |
-- |
-- |
Mrs. Namita |
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|
|
|
|
Dalmia, Relative |
Services |
-- |
Salary |
-- |
-- |
Mrs. Sumedha |
|
|
|
|
|
Dalmia, Relative |
Services |
-- |
Salary |
-- |
-- |
Mrs. Manju Devi |
|
|
|
|
|
Dalmia, Relative |
Services |
-- |
Rent |
-- |
-- |
|
|
For and on behalf of the Board |
Place: New Delhi |
|
|
Date: 28th August 2023 |
|
|
|
Sd/- |
Sd/- |
|
Saket Dalmia |
Amit Dalmia |
|
(Managing Director) |
(Director) |
|
DIN: 00083636 |
DIN:0003646 |
+91-9892691696
