The Directors have pleasure in placing before you the 8th Annual Report
together with the Audited Statement of Accounts for the year ended 31st
During the year under review your Company achieved a turnover of Rs.
5197.22 lacs representing a modest increase of 8.44 percent over Rs.
4792.41 lacs in the previous Financial Year 1998-99. A significant
achievement has been the Company's ability to successfully export
certain fancy immitation jewellery items and Gold jewellery items in
the Gulf and European countries. It is a matter of great pride that for
the first time in its history your Company has manufactured and
exported Gold jewellery items valued at over Rs. 10 lacs. The Company's
export turnover at Rs. 96.35 lacs represented a significant growth
over Rs. 8.82 lacs in the previous year. The Company however, during
the year continued to face Working Capital constraints as a consequence
of which a major portion of the Company's production basically involved
plating and assembling operations for semi-finished jewellery items
purchased by the Company, thus enabling a faster production cycle and
reduced Working Capital requirements. The entire business activity
during the year was carried on at the Company's manufacturing unit at
Bhayander and Sanjan. No activity whatsoever was undertaken at the
Silvassa unit following seizure proceedings initiated by the Tax
authorities in December, 1998.
Although the overall turnover did register a modest growth, there was a
reduction in overall gross margin as a result of major production being
by way of plating/assembling operations for outsourced semi-finished
items wherein the margins are lower. Besides the silvassa unit also was
not operational during the year. As a result, the Company's
profitability during the year declined from Rs. 201.72 lacs to Rs.
109.69 lacs during the year under review.
The summarised financial performance of the Company is as under:
(Rs. in Lacs)
Total Sales 5197.22 4792.41
Profit after Interest but before Depreciation 147.86 243.50
Net Profit 109.69 201.72
The Directors recommend payment of dividend @ 5% on Equity Capital
subject to the necessary approval of the shareholders at the Annual
General Meeting. Dividend @ Rs. 0.50 per share, along with corporate
tax on dividend, would absorb a sum of Rs. 19.43 lacs and would be paid
to the shareholders whose names appear on the Register of Members as on
As mentioned earlier, the Company has been able to successfully tap the
export market which in the coming years should help the Company in
fully exploring the export potential for jewellery and other allied
items. Towards this, the Company has set up a strategic business unit
(S.B.U) for promoting exports which has since been become operational.
The Strategic Business Unit has infact started yielding results and
helped the Company secure export orders of over Rs. 4.00 crores in the
current financial year, which export orders are in different stages of
implementation. Sustained efforts are being made in this direction
through the S.B.U set up as above with the objective of tapping a huge
export market which exists for the Indian made jewellery products, not
only due to its design appeals but also on accounts of cost
The Company in future, does expect to emerge as a leading exporter of
jewellery items from India, which will improve the Company's overall
performance in the years ahead.
FIXED DEPOSITS/CLAIMS ETC.
1. The Company has not accepted any fixed deposits.
2. The order for Income tax Demand of Rs. 2.34 crores for Assessment
Year 1996-97 has since been set aside by the appellate authorities and
there is presently no income tax aims against the Company.
3. Claims towards quality discount on sale of Jewellery items against
the Company, a provision for which was made in Financial Year 1998-99
has since been amicably settled. Following the settlement, the excess
provision for claims as aforesaid of Rs. 98.97 lacs has been written
back in the Profit and Loss account for Financial year 1999-00.
DEMATERIALISATION OF SHARES
The Directors would like to inform once again all its shareholders that
the Company's equity shares have been admitted for trading in
dematerialised from through the electronic medium consequent upon
agreement entered into by the Company in this behalf with NSDL and CDSL
w.e.f. 23/03/2000 and 22/04/2000 respectively.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNING AND OUTGO
Information regarding conservation of energy etc. as per Sec. 217(1)(e)
of the Companies Act, 1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules 1988, is given
a. Conservation of Energy
The particulars regarding conservation of energy are not applicable to
the Company as the Imitation Jewellery Industry is not covered under
the schedule prescribed by the said Rules.
b. Technology Absorption
The manufacturing process for immitation Jewellery involves making of
dies for different designs which are manufactured using in-house
technology developed by the Company.
c. Foreign Exchange Earnings and Outgo
Details regarding foreign exchange earnings and outgo are given in not
10 to Schedule P of the Accounts.
PARTICULARS OF EMPLOYEES
There are no employees in respect of whom a statement of particulars
u/s 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules is required to be given.