The Directors are pleased to present the 6th Annual Report and the
audited annual accounts for the financial year ended 31st March, 2012.
The financial performance of the Company, for the year ended 31st
March, 2012 is summarized below:
(Rs in Million)
Particulars For the F. Y. For the F. Y.
ended 31st ended 31st
March, 2012 March,2011
Income from Operation:
Net Sales 19567.99 18,432.73
Other Income 526.67 177.67
Profit before Tax 410.65 537.60
Less: Current Tax (41.00) (76.00)
Mat Credit Entitlement 26.00 18.00
Deferred Tax 5.41 92.44
Wealth Tax 0 (0.03)
Profit after Tax 393.49 572.01
Less: Prior period income tax (7.57) (0.03)
Add: Profit brought forward
Amount Available for 1649.91 1,263.95
Utilized for bonus shares issued
during the year _ _
Balance Carried to Balance Sheet 1649.91 1,263.95
Review of Operations:
During the year under review, the Company''s net sales are earned of Rs.
19,567.99 million net sales as against Rs. 18432.73 million during the
previous financial year. showing growth of 6.16% compared to previous
Your Directors are continuously looking for avenues for future growth
of the Company.
Background of C. Mahendra Group
C. Mahendra Exports Ltd, a renowned and trusted name since 1974, is one
of the leading diamantaire and jewellery Company with a wide spread
around the world.
The pioneers of the Company, Mr. Mahendra C. Shah and Mr. Champak K.
Mehta commenced the business in 1974. C. Mahendra Exports was formed
in the year 1978 to carry on the business of manufacturing and trading
of diamonds. It is the flagship company of our CM Group. Subsequently
three subsidiaries were established to handle the expanded business. C.
Mahendra Exports set up its first state of the art factory for
manufacturing cut and polished diamonds in Surat, India in the year
Offices were opened outside India for effective and increased
marketing. In 2003 Ciemme Jewels incorporated in 2003, in 2006, C.
Mahendra Exports commissioned the second state of the art manufacturing
factory at Varachha Road, Surat, India to manufacture large size
polished diamonds, In Jan, 2007, C. Mahendra Exports converted from
Partnership Firm into a private company and March, 2007 changed from
Private Company to Public Limited Company i.e. C. Mahendra Exports Ltd.
To C. Mahendra Exports Ltd. has employed the latest and most advanced
technologies for manufacturing of cut and polished diamonds with
ultimate brilliance diamonds. CM Group has a highly skilled pool
of human resources.
C. Mahendra Exports Ltd. has its Registered and Sales Office in Mumbai
from where all the marketing, assorting, administration and finance
operations are controlled. The entire operation for manufacturing is
controlled and managed from the Surat office. CM Group is firmly
established across major diamonds and jewellery centers globally in 5
- China - Hong Kong
- India - Mumbai, Delhi
- UAE - Dubai
- Belgium - Antwerpen
- U.S.A-New York
C. Mahendra Exports Ltd. enjoys an envious position in the diamond
industry of being one of the top exporters with an unblemished client
record. C. Mahendra Exports Ltd. has its presence in the diamond
studded jewellery business. Our branded jewellery is retailed under
the brand name Ciemme across the world.
C Mahendra BVBA, the Antwerp based entity of the C Mahendra Group is a
member of the Responsible Jewellery Council (RJC).The management of C
Mahendra B.V.B.A., as a member of the Responsible Jewellery Council
(RJC) is committed to complying with the Code of Practices of RJC.
Diamond Manufacturing Facilities -
The Company set up its first factory for diamond production at Udhana,
in 1993. The Company Established second diamond cutting and polishing
factory in Varachha in 2006 (100% EOU)
Green Energy Division (Wind Energy) -
The Company started the activities related to its Green Energy
Division, by setting up Wind farm businesses at Sangli, Maharashtra in
2006 and Kutch, Gujarat in 2007.
The company has invested Rs.68 Crores in the Green Energy in the state of
Maharashtra and Gujarat. In the year 2005-06, the Company has installed
eight Wind Turbine Generators (WTGs) each of 1.25 MW, total having 10
MW in the state of Maharashtra for sale of energy to MSEDCL. Further,
in the year 2007-08, company has installed two Wind Turbine Generators
(WTGs) each of 1.50 MW, total having 3.00 MW in the state of Gujarat
for the captive consumption (Wheeling) for its units at, Udhana &
Varachha in Surat.
The company has total revenue from sale of electricity generated from
windmills During the year 2011-12 is Rs. 8,74,36,925/- Subsidiary
As required under Section 212 of the Companies Act, 1956, the Audited
Statements of Accounts of subsidiary companies:
1) C. Mahendra International Limited
2) C. Mahendra BVBA, Antwerp (Belgium)
3) C. Mahendra DMCC Dubai United Arab Emirates.
Auditors'' Reports thereon for the year ended March 31, 2012 are
Consolidated Financial Statements
In accordance with the Accounting Standard 21, issued by The Institute
of Chartered Accountants of India, your Directors have pleasure in
attaching the Consolidated Financial Statements for the year ended
March 31, 2012.
The Company is availing Working Capital requirements from the
Consortium of 13 Bankers and has obtained adequate finance during the
year under review. The debt is secured by immovable properties, current
assets and others.
There was no change during the F. Y. 2011-12 , Thereafter Mr. Shailesh
S. Vaidya, Independent Director has resigned w.e.f. 26th July, 2012.and
Mr. Prabodh Nagardas Shah has been appointed as an Independent Director
in the Board of directors w.e.f. 14th August, 2012.
The Properties and Assets of the Company are adequately insured.
Particulars of Employees
The Company has no employees of the specified categories under section
217 (2A) of the Companies Act, 1956 read with Companies (particulars of
employees) rules, 1975 as amended up to date.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Information under Section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 are given in Annexure I to this report.
Directors'' Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 Directors based on the representations received from the
Operating Management, confirm:
(i) That in the preparation of the annual accounts for the financial
year ended 31st March, 2012 the applicable accounting standards had
(ii) That the directors had selected such accounting policies and
applied them Consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit and loss of the company for the year.
(iii) That the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of The Companies Act, 1956 for safeguarding the assets of
the company and for preventing and detecting fraud and other
(iv) That the directors had prepared the annual accounts for the
financial year ended 31st March, 2012 on a going concern basis.
Disclosures under Section 217(1)(d) of the Companies Act, 1956 Except
as disclosed elsewhere in this report, there have been no material
changes and commitments which can affect the financial position of the
Company occurred between the end of the financial year of the Company
and date of this report.
Transfer to Reserves in terms of Section 217 (1)(b) of the Companies
For the financial year ended 31st March, 2012 the Company had transfer
Rupees 39,34,90,906 to Reserves.
The Board of directors of the Company considered the eligibility letter
dated 31.08.2012 received from M/s R. H. Modi & Co., Chartered
Accountants thereafter, proposed and recommended to appoint M/s R. H.
Modi & Co., Chartered Accountants, (Firm Reg. No. 106486W), Room No.
11, Singh House, 23, Ambalal Doshi Marg, 2nd Floor, Fountain, Mumbai -
400 023, a new Statutory Auditors of the Company for the F. Y. 2012-13
at the ensuing Annual General Meeting of the Company in place of
existing Statutory Auditors M/s Suresh Surana & Associates, Chartered
Accountants, 310, Ahura Centre, 82, Mahakali Caves Road, Andheri
(East), Mumbai - 400 093, who expressed its unwillingness to continue
and resigned as the Statutory Auditors of the Company w. e. f. 30th
Your directors would like to place on record their deep sense of
gratitude to the Shareholders, Banks, Financial Institutions, valued
customers and business associates, and various other
government/semi-government agencies for all the guidance, co-operation,
support and encouragement extended by them to the company.
Your directors would also like to take this opportunity to gratefully
appreciate the hard work and dedicated efforts put in by the employees
and look forward to their continued contribution in future endeavors of
For and On behalf of the Board of Directors
(Mahendra C. Shah)