Today's Top Gainer
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India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation (CSO) and International Monetary Fund (IMF) and it is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. Indias GDP is estimated to have increased 6.6 percent in 2017-18 and is expected to grow 7.3 per cent in 2018-19.
Numerous foreign companies are setting up their facilities in India on account of various government initiatives like Make in India and Digital India. Make in India is launched with an initiative to aim and boost the manufacturing sector of Indian economy, to increase the purchasing power of an average Indian consumer, which would further boost demand, and hence spur development, in addition to benefiting investors. The Government of India, under the Make in India initiative, is trying to give boost to the contribution made by the manufacturing sector and aims to take it up to 25 per cent of the GDP from the current 17 percent. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy.
Given the volatile input cost environment and heightened competitive intensity, the operating environment for your Company during the year continued to be challenging. Your Companys performance for the year 2017-18 has to be viewed in the context of aforesaid economic and market environment.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Granite is one of the most sought-after material among all building stone. Granite is in demand due to its amenability for taking mirror like polish, high compressive strength, longevity and aesthetics. Granite finds application in many areas; accordingly market is segmented among four product categories, namely Natural stone processing industry, Building Industry, Funerary Industry and Consumer market.
The natural stone processing industry uses raw and semi finished products, and the other three segments use finished products. Slabs and raw blocks are sold to the processing industry. The processing industry in turn processes custom made products and various other products and sends these to the other three segments of the market. Around 80% of the natural stone products are consumed by the building industry.
The global demand for granites and stones is subdued. In this challenging scenario, 95% of ou r Japanese market has already been captured by China and we are suffering due to high interest rates, delay in the renewal of leases, increasing cost of operations and lack of talented manpower.
INTERNAL CONTROL SYSTEM AND THEIRADEQUACY:
The Company has adequate systems of internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information.
TheAudit Committee reviews the adequacy and the effectiveness of the internal controls at periodic intervals to ensure that internal control systems are adhered to. Further, the Board annually reviews the effectiveness of the Companys internal control system.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
Since July, 2015 Company has stopped production due to unviable market conditions and acute financial position of the Company. During the Financial Year 2017-18, the Company had revenue of Rs. 10.17 Lakhs from sale of inventories and incurred a expenditure of Rs. 88.37 Lakhs and net loss of Rs. 76.72 Lakhs.
Board of Directors of the company are waging different options to revive the operations of the company.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS FRONT:
Your Companys human resource management systems and processes are designed to enhance employee engagement, organizational capability and vitality so as to ensure that competitive superiority and capable of achieving your Companys ambitious plans for growth.