Ladies and Gentlemen,
I have great pleasure in welcoming you to the 13th Annual
General Meeting of your company. The Directors report and
the audited accounts for the year 31st March 1995 have been
with you for sometime now and with your permission I take
them as read.
REVIEW OF OPERATIONS
The year ended 31st March 1995 has been an excellent year
for the company's performance and financial results. The
turnover has gone up by 104% to Rs.96.55 crores and Net
Profit up by over 173% to Rs.13.28 crores.
Your company has touched a turnover of around Rs.100 crores
during the current financial year i.e. during the period
April 1995 to 25th September, 1995, which is more than the
turnover achieved in the previous whole year. However, I am
confident that even this turnover, highly satisfactory
though it is, will appear to be small to you all when
compared in the context of the expected turnover in the next
six months on account of the jewellery project which has
Your company has achieved an export turnover of Rs.8.90
crores during the financial year 1994-95.
It also gives me pleasure that the Board of Directors of
your company has decided to increase the dividend to 40% for
the year under review namely 1994-95 as against 15% declared
for the previous year. I think the perspective of our
operations for the years to come explains this optimistic
approach of our board, I am sure the shareholders will
endorse the recommended dividend.
PROSPECTS AND NEW PROJECTS
Gold, this glittering treasure has enthralled people the
world over from the immemorial. The most common use of Gold
all over the world is for making jewellery. Besides this,
gold is bought for investment. It is also used in the
industries for its other properties.
While the enduring physical properties of gold have made it
a commodity by which a person can confidently and
successfully cross the financial plights and difficulties,
its glittering malleability makes it suitable for shapes and
forms which are aesthetically beautiful, pleasing to the eye
and satisfying to the heart.
It is worth noting that India Tops the list in the
international market for consuming the largest amount of
As per World Gold Council report for the year 1994. The
estimated consumption for gold is 415 tonnes as against the
overall world demand of 3109 tonnes. The gold business in
India is expected to register a cumulative growth rate of
21% per annum. I hope that your company will prove itself
to be a fitting instrument in Giving a thrust to the
expected growth in demand as well as establish itself as a
leading and major partner in the trade so enhanced.
Your company has to cater to the aesthetic needs of each and
every segment of society. It has, therefore, started
manufacturing the exclusive jewellery as well as hollow
light weight jewellery, with your company's expertise and
technical skill gold jewellery would also become accessible
to all homes at a price which they can afford and pay
without any pinch or embarrassment.
IMPLEMENTATION OF PROMISED SCHEME AT LAUNCHING OF PRODUCTS
The civil works for the company's jewellery project at Bhat
gem & jewellery complex, District Gandhinagar, Gujarat State
are in progress. There has been some delay in the
implementation of the project, due to circumstances beyond
our control. We, however, do not foresee any cost over-run.
This project is likely to be commissioned before the end of
the year. However, your company has commenced production of
master alloys, semi-finished products and finished jewellery
at its existing Bombay plant.
The jewellery manufactured by this jewellery plant is under
test marketing and is displayed on the stage for viewing by
The company proposed to launch the jewellery nation wide
before the end of the calendar year. On first launching of
the products, as promised in the Directors report, your
Directors have worked out a scheme of offering a special
discount to each and every member of your company.
Accordingly a special discount of 7.5% on the purchases made
by them of company's jewellery upto Rs.50,000 will be given.
It is needless to say that this discount, which covers even
the price of the gold is substantial in products of precious
metals in general and of gold in particular. I have no
doubt that this humble gesture on the part of the company
would be welcomed by you as cementing further our mutual
bonds, and the members will avail this opportunity.
The Company has initiated action for acquiring space for
Company's showroom in the major cities of the country. The
Company has also started negotiations with prospective
franchises with the intention to make the jewellery
available throughout the country.
I am further pleased to announce that Parekh Micro
electronics (India) Ltd., our associate company which is
having its factory situated at Gandhinagar in Gujarat has
commenced production of thick film materials in technical
collaboration with Du Pont, U.S.A. The Company has also
entered into technical collaboration with Osram Sylvania
Inc, USA, formerly known as GTE Corporation for manufacture
of electronic phosphors and it has started implementing the
project. The Company is also setting up a project for
manufacture of chip resistors and resistor networks.
I am grateful to our members for their overwhelming response
to the Company's Rights Cum Public Issue of Equity Shares
floated during April 1995. I would like to thank all the
employees of your company for their dedication and
commitment as also to members of the Board who continue to
steer your company with Sagacity and Foresight.
The Co-operation and support received by us from the
Government at the centre as well as at the States, Financial
Institutions, Banks and our Business Associates have been a
source of Great Strength to us.
I would like to thank them all and our shareholders for
their confidence and support extended to us.
Thank you very much.