Solid Stone Company Ltd Management Discussions

FOR 2022-23 Industry Structure and development:

The Global and Domestic Economy have been witnessing sectoral turnaround during the year, yet economic challenges prevail, which have impact on construction and building materials industries.

Opportunities and threats

Your company deals in very special types of Granite/Marble having unique colors for which the overseas and domestic market, both are very eager. Presently, it is one of the few companies which offers all natural stone products under one roof to the buyers. The demand for top quality natural stone products is also growing in the domestic market and the company has setup Retail outlet within the country so as to cater to the local demand for quality products.

Your Company is also engaged in business of Semi Precious stones which has good potential in global and domestic markets.

However, the number of dealers dealing in imported and other natural stones catering to domestic market are increasing, thus reducing the margins and making the business competitive. The availability of manufactured stone products as an alternative to natural stones is also likely to affect the performance of the company.

Further Outlook

National initiatives such as Make in India, Skill India, Startup India, Smart Cities, Housing for All, Affordable Low Cost Housing; broadening financial inclusion, streamlining of taxation structure with the passage of the GST, strengthening of infrastructure, etc. would lead to improvement in the economic growth of the country in the coming future.

The company foresees reasonable growth of its product line and varieties of Natural stones, designer mosaics as well as semi precious stone products and concepts, subject to the nationwide economic activity being opening up fully post pandemic. The economic outlook for the year is still uncertain but viewed with cautious optimism. Our plans for the growth of the business and profitability are based on an average economic outlook, in the present business scenario.

Performance for 2022-2023

During the financial year 2022-2023, the company achieved a sales turnover of Rs.3080.31 lakhs as against a Sales Turnover of Rs.2432.10 lakhs in the previous year. Total Comprehensive Income after tax stood at Net Profit of Rs.56.89 lakhs as compared to Net Loss of Rs.70.89 lakhs in the previous year. The Companys gross income for the financial year ended 31^st March 2023 improved substantially, and was also able to post a reasonable net profit for the current financial year as against net loss in the previous year.

Capital Structure

There was no change in the capital structure of the company. The issued and paid up share capital as at 31^st March, 2023, comprises of 53,80,000 equity shares of Rs.10 each.

Internal Control Systems

The internal controls system for safeguarding and protecting assets against loss from unauthorised use or disposition are in place.

Regular internal audits, review by management and documented policies, guidelines and procedures supplements the internal controls which are designed to ensure that financial and other records are reliable for preparing financial information and other data and for maintaining accountability of assets

Cautionary Statement

Statements in the Management Discussions and Analysis describing the Companys objectives, projections, estimates, expectation may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Several factors make a significant difference to the companys operations, including climatic conditions, economic scenario affecting demand and supply, Govt. regulations, taxation, natural calamity and other such factors which the company does not have any direct control.