Swasti Vinayaka Art & Heritage Corporation Ltd Management Discussions

I. INDUSTRY STRUCTURE AND DEVELOPMENTS

GEMSTONE CARVINGS, SIGNIO PAINTINGS AND COUTURE JEWELLERY:

Indias Gems and Precious Stone sector is one of the largest in the world. India is also one of the largest consumers of precious metal jewelleries and also preferred exporter of finished products across the world. Indian gemstones are being sold domestically as well as in the overseas markets. Gems and Precious Stone sector plays a vital role in the Indian economy as it is one of the largest exporters of the country and also provides employment to a very large number of artisans. India is deemed to be the hub of the global gemstones market because of its low costs and availability of high-skilled labour. Your Company is taking initiative to analyse the market demand and current situation in Indian markets as well as in the overseas markets and accordingly steps are being taken towards this direction and we are confident that in coming years this sent of our business will be performing better and we expect our loyal customers and new collectors will keep giving us continuous business.

The Increasing urbanization 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. Despite a two-year long slump, the property market in India saw an incredible comeback in 2022. Further real estate is one of the fastest growing industries in the country where we are continuously analyzing the market situation and have an optimistic approach that this segment of our business will be performing well in upcoming period.

Indian Market has good opportunities for both Precious & Semi Precious Stone sector as well as Real Estate sector. The demand for artifacts made from precious and semi-precious stone is present in India as well as worldwide. As the Indian economy is growing there is an increase in disposable income, due to which the demand for gemstone, precious stones etc., is increasing. The demand is expected to be significantly supported by the recent positive developments in the industry.

The demand for our products is directly proportional to the affluence of the society and any disturbance in the economic growth directly affects demand of our products. Also, inflation pressure reduces the disposable income which affects our sales. The effect of post Covid 19 situation continue to impact our business. The changes in government policies towards the real estate may also impact our business. Shifts in consumer preferences, any disrupt in the supply chain, economic downturn and recession could affect the demand of our products

During the year under review, revenue from sale of products was Rs. 7,35,19,192/- and Revenue from sale of services was Rs. 11,54,99,458/-

There exists intense competition in the market for both the sections of our business. We are taking necessary initiatives to continuously analyze 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.

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

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.

Your Companys total sales registered a growth, resulting in revenue from operations being Rs. 1,890.19 Lakhs for the current financial year ended on March 31, 2025 as against Rs. 1,238.30 Lakhs in previous financial year ended on March 31, 2024 and profit after tax was recorded at Rs. 231.57 Lakhs in the current year as against Rs. 204.56 Lakhs in the previous financial year.

Your Company has cordial relations with its employees. The Company commends the commitment, dedication and competence shown by its employees in all aspects of business. With the growing requirements of the Company, Company has taken necessary initiatives to ensure not only the retention of the employees but also their growth and development.

In the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has not been followed; thus, managements explanation is not required.

Statement in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts.