Shree Steel Wire Ropes Ltd Management Discussions.

We are pleased to report that during Financial Year 2019-20, the Company has made a Net Profit (before tax) of Rs. 253.20 lakhs.


The Financial Statement has been prepared in Compliance with the requirement of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (SEBI) and Generally Accepted Accounting Principles (GAAP) in India. Our Management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein.

The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, so that the financial statements reflect in a true and fair manner the form and substance of transactions and reasonably present our state of affairs, profits and cash flows for the year.

Growth Review

The Company is one of the major suppliers for "Stainless Steel Wire Ropes" to the Indian Railways. The Company has added varied products required by Indian Railways, to its range of products. All these items are required by the Indian Railways for new Infrastructure and Maintenance purpose of various railway routes throughout India. The demand for above items would increase as the government requires for replacements and new installations.

Cautionary Statement

Statement in the Management Discussion and Analysis describing the Companys objectives, expectations, predictions and assumptions may be forward looking within the meaning of applicable Securities Laws and Regulations. Actual result may differ materially from those expressed herein. Important factors that could influence the Companys operations include global and domestic economic conditions affecting demand, supply, price conditions, change in Governments regulations, tax regimes, other statutes and other factors such as litigation and industrial relations.

Threats and Risks

The competition for the products manufactured by the Company has increased due to new entrants in the market for similar products and also there is volatility in the prices of raw materials in recent past. This may reduce the market share of the Company and also may result into lower margins than the current level due to competition and higher input costs.

Covid-19 impact on business outlook

As CoVID-19 spread rapidly, both in terms of number of cases and the affected countries, it is characterised as a pandemic. Even though there was a complete lockdown from March 2020 and considering the situation of Manpower and Labour required and involved, the Company briefly started its operation from June 2020 with all the safety measures in place. In view of the pandemic, the business of the Company is adversely affected due to the lockdown and the exact impact of COVID-19 as of now is hard to ascertain. The Company has adopted Work from Home Policy for the Banking/ Accounting and Regulatory Compliances while other departments were non functional due to CoVID-19. The Company has paid the salary/wages to its staff/workers for the month of March, 2020 and a reduced percentage for the month of April, May & June 2020.