shree steel wire ropes ltd Management discussions

We are pleased to report that during financial 2022-23, the Company has made a net profit (before tax) of Rs. 1,06,66,045

Overview

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 "Steel Wire Ropes" to the Indian Railways. The Company has added varied product required by Indian railways, to its range of products. All these items are required by the Indian Railways for routes throughout India. The demand for above items would increase as the government requires for replacements and new installations. The Company has replaced new machinaries in place of old machinaries to increase production capacity in order to meet future demand and to bring efficiency and reduce overhead cost.

Milestones

1. GeMs (Governance e-marketplace)

We are glad to inform you that the Company has registered on GeMs (Governance e-marketplace) and continuously taking initiatives towards updation ,hosted by Directorate General of Supplies and

Disposals (DGS&D) under the Ministry of Commerce and Industry is a central purchase and quality assurance organisation. GeM is dynamic, self sustaining and user friendly portal for making procurement by Government officers.

For more information you may visit: Companys GeMs Seller ID: 55C2200001311219 and link https://mkp.gem.gov.in/ropes-steel-wire-ropes-for-general-engineering-purposes/search#/?q=SSWRL under the brand name "SSWRL".

2. Receivables Exchange of India Limited (RXIL)

Further, we are also delighted to inform you that the Company has registered with Receivables Exchange of India Limited (RXIL) platform as a MSME seller. It is an online electronic platform and an institutional mechanism for financing / factoring of trade receivables of MSME Sellers against Corporate Buyers, Govt. Departments and PSUs.

RXIL, a joint venture between National Stock Exchange of India Limited (NSE) and Small Industries Development Bank of India (SIDBI) has been authorised by Reserve Bank of India (RBI) to operate the TReDS platform. The main objective of the TReDS platform is to address the financing needs of MSMEs as well as the delayed payments issue.

For more information you may visit: https://www.rxil.in/ and the Member Code of the Company is SH0018229

3. E-Invoicing

E-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).

Presently, the process is mandatory for businesses with an annual turnover of Rs 5 crore and above. The government has widened the ambit of e-invoicing for businesses by lowering the mandatory turnover threshold to Rs 5 crore from Rs 10 crore under the Goods and Services Tax (GST) regime.

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.

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.