Swasti Vinayaka Art & Heritage Corporation Ltd Management Discussions

GEMSTONE CARVINGS, SIGNIO PAINTINGS AND COUTURE JEWELLERY:

Indias Gems and Jewellery sector is one of the largest in the world. India is also one of the largest consumer of precious metal jewelleries and also preferred exporter of finished products across the world. Indian jewellery and gemstones are been sold domestically as well as in the overseas markets. But as the current COVID-19 situation has affected other industries it has affected Gems & Jewellery sector too. The consumption rate had went down temporarily and also supply chains were disrupted due to the lockdown restrictions imposed by the government. But now slowly the Indian economy is recovering and the government has issued some relaxations in lockdown restrictions and in upcoming period there will be normalcy in demand both in domestic market as well as in overseas markets.

As far as SVART is concerned the intiatives are been taken to analyse the market demand and current situation in Indian markets as well as in the overseas markets and accordingly steps are been taken towards this section. and we are confident that in coming years this section of our business will be performing well and feel that our loyal customers and new collectors will keep giving us continuos business.

REAL ESTATE

The Increasing urbanisation in India and also the demand for properties for business activities has resulted in increased demand for residential properties as well as the Commercial properties. The present government has also issued various policies in support of this sector. However the current COVID-19 situation has affected the demand. The Indian economy is slowly recovering from the COVID-19 impact and the demand is expected to be steady in upcoming period. We are been continuously analysing the market situation. We have an optimistic approach that this section of our business will be performing well in upcoming period.

Opportunities:

Indian Market has huge opportunities for both Gems & Jewellery sector as well as Real Estate sector. The demand for Indian made Jewelleries is huge in the overseas market as well. The Indian traditions of making jewelleries is also a key aspect for the demand of jewelleries in India as well as among the Indian diaspora worlwide.

Threats:

There is tough competition in the market as there are increasing number of market players. And also the current situation has posed a certain level of uncertainty in the market demand. The changes in government policies may also have an impact on the business.

III. SEGMENT-WISE PERFORMANCE:

During the year under review, revenue from sale of products was Rs. 1,41,77,237 and Revenue from sale of services was Rs. 8,03,77,588

IV. OUTLOOK

There exists intense competition in the market for both the sections of our business. We are taking necessary intiatives to continuously analyse the current performance of our businesses and are taking steps as required to survive through the tough competition and to continue the growth of our businesses.

V. RISKS AND CONCERNS

There exists certain level of uncertainty in the market demand, and the current situation of COVID-19 is also one of the factor of concern. The company has taken intiatives to protect itself and its stakeholders from internal as well as external factors.

The COVID-19 pandemic has disrupted the business operations due to Lockdown and other emergency measure imposed by the Government. The Company will continue its operations in a phased manner in line with directives from the authorities.

VI. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. All efforts are being made to make the internal control systems more effective. All business transactions are properly recorded and are in compliance and conformity with the accounting principle and processes.