Mar 31, 2018
Dear Members,
The Directors take great pleasure in presenting the 29th report on the business and operations of your Company along with the Annual Report and Audited Financial Statements for the Financial Year 2017-18.
Financial Highlights
Your Company earned a Profit Before Tax (PBT) of Rs.382.26 million, as compared to PBT of Rs.384.06 million in the previous year. Highlights of the financial performance (Standalone) are as follows:
(Rs. in Million)
F.Y. 2017-18 |
F.Y. 2016-17* |
||
Sales |
10222.08 |
11004.32 |
|
Gross Profit |
876.40 |
819.70 |
|
PBID |
604.91 |
546.53 |
|
Less: Interest |
91.74 |
81.08 |
|
Less: Depreciation |
78.08 |
81.39 |
|
PBT |
382.26 |
384.06 |
|
Provision for Tax |
83.04 |
86.30 |
|
PAT |
299.21 |
297.76 |
*The Company has adopted Indian Accounting Standards (Ind AS) with effect from April 01, 2017, pursuant to the notification of Companies (Indian Accounting Standard) Rules, 2015 issued by the Ministry of Corporate Affairs under Section 133 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014. The financial statements for the year ended on March 31, 2017 have been restated in accordance with Ind AS for comparative information.
The consolidated revenue from operations of the Company for the year ended March 31, 2018 was Rs.18251.02 million (PY. Rs.14734.48 million), an increase of 23.87% on a year-on-year basis. An Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs.1016.11 million (PY Rs.812.59 million) an increase of 25.05% on a year-on-year basis. Profit After Tax (PAT) was Rs.637.91 million (PY Rs.425.22 million) an increase of 50.02% on a year-on-year basis. The detailed analysis of the Companyâs business is given in the Managementâs Discussion and Analysis Report that forms part of this Annual Report.
Dividend
Your Board of Directors has not recommended any dividend for the Financial year ended March 31, 2018.
Transfer to Reserves
During the year under review, your Company has not transferred any amount to General Reserve Account.
Material Changes & Commitments
No material changes and commitments, affecting the financial position of the Company have occurred after the end of the financial year 2017-18 and till the date of this report.
Managementâs Discussion and Analysis Report
Managementâs Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 (2) (e) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI (LODR) Regulations, 2015), is presented in a separate section forming part of this Annual Report.
Subsidiaries
As on signing date of this report, your Company had following direct and indirect subsidiary companies/LLP:
Direct Subsidiary Companies:
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Ltd, India #
4. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh
5. Verigold Jewellery DMCC, Dubai
Indirect (Step-down) Subsidiary Companies:
1. House Full International Ltd., India #
(Subsidiary of N. Kumar Diamond Exports Ltd)
2. House Full Supply Chain Management Ltd., India
(Subsidiary of House Full International Ltd.)
3. Renaissance Jewellery DMCC
(Subsidiary of Verigold Jewellery DMCC, Dubai)
Limited Liability Partnership:
1. Aurelle Jewellery LLP India $
# Amalgamation of wholly owned subsidiaries (WOS) of the Company
During the financial year under review, the Board of Directors of the Company at its meeting held on August 29, 2017 has approved the Scheme of Amalgamation of wholly owned subsidiaries of the Company viz. House Full International Limited and N. Kumar Diamond Exports Limited with the Company.
As per the order dated January 19, 2018 passed by the Honâble National Company Law Tribunal (NCLT) Mumbai Bench, the meeting of equity shareholders of the Company was convened and held on February 27, 2018 to approve the said Scheme of Amalgamation. At the said meeting the shareholders of the Company have approved the Scheme of Amalgamation. On March 21, 2018, the Company has filed the necessary proceeding documents with the NCLT as per the provisions of Companies Act, 2013. However, the final approval of the NCLT for the said Scheme of Amalgamation is awaited.
The appointed date for the said amalgamation is April 1, 2017 or such other date as may be agreed between the Transferor Companies and the Company and approved by the NCLT.
Pursuant to Scheme of Amalgamation, no consideration shall be paid and no shares of the Company shall be issued and allotted on amalgamation. The Scheme of Amalgamation will enable the Company to consolidate and effectively manage the Transferor Companies and the Company in a single entity, which will provide several benefits including synergy, economies of scale, attain efficiencies and cost competitiveness.
The details of Scheme of Amalgamation of House Full International Limited and N. Kumar Diamond Exports Limited with Renaissance Jewellery Limited and Notice of NCLT Convened Meeting are posted on website of the Company www.reniewellery.com.
$ Strike off of Aurelle Jewellery LLP
After the closure of the financial year under review Aurelle Jewellery LLP has filed an Application for striking off its name with the Registrar, on May 10, 2018.
Financial statements/reports of the subsidiaries
The Company has eight subsidiaries including five wholly owned subsidiary and three step-down subsidiaries. The Board of Directors of the Company reviewed the affairs of subsidiaries of the Company. The Consolidated Financial Statements of the Company are prepared in accordance with the relevant Indian Accounting Standards issued by the Institute of Chartered Accountants of India and forms an integral part of this Report.
Further, a statement containing the salient features of the financial statement of the subsidiaries in the format prescribed i.e. Form AOC-1, (Pursuant to first Proviso to sub-section (3) of section 129 read with Rule 5 of Companies (Accounts) Rules, 2014) has been attached separately to this Annual Report. The Company will make available the accounts of subsidiaries to any member of the Company on request.
Consolidated Accounts
In accordance with the requirements of Companies Act, 2013 and Indian Accounting Standards IND-AS 110 prescribed by the Institute of Chartered Accountants of India, the Consolidated Financial Statements of the Company and its subsidiary is provided in this Annual Report.
Goods and Services Tax (GST)
The Goods and Services Tax (GST) is a landmark reform having a lasting impact on the economy and on businesses. Your Company has successfully implemented and migrated to GST with effect from July 01, 2017 and changes across IT systems, supply chain and operations have been made keeping in mind the sweeping changes that GST has brought in.
Share Capital
- Issue of equity shares with differential rights
During the financial year under review, there was no issue of equity shares with differential rights in terms of Rule 4 (4) of Companies (Share Capital and Debentures) Rules, 2014.
- Issue of sweat equity shares
During the financial year under review, there was no issue of sweat equity shares as provided in rule 8 (13) of Companies (Share Capital and Debentures) Rules, 2014.
- Buyback of Equity Shares
During the financial year under review, after obtaining requisite approval of the Board, your Company has completed the buyback of 2,00,000 equity shares of the Company (representing up to about 1.05% ofthe total number of Equity shares of the Company) at a price of Rs.250 per share for an aggregate amount of Rs.5,00,00,000/-.
The Buy Back offer size of Rs.5,00,00,000 represents 1.20% of the total Paid up Capital and Free Reserves of the Company, as per the audited accounts of the Company for the financial year ended March 31, 2017.
In accordance with the provisions of the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 and the Companies Act, 2013 and rules made there under, the said buyback was made from the Equity Shareholders/ Beneficial owners ofthe Company who held Equity Shares as on the record date i.e. June 12, 2017 (âRecord Dateâ) on a proportionate basis through the tender offer using stock exchange mechanism (âTender offerâ).
An amount of Rs.5,00,00,000 was utilised from General Reserve to off-set the buy back offer including transfer of Rs.20,00,000 to the Capital Redemption Reserve to the extent of Share Capital extinguished.
The final settlement date for buy back was September 13, 2017 and Extinguishment of Shares was completed by September 20, 2017.
Consequent to such buy back the number of Equity Shares reduced from 1,90,79,440 to 1,88,79,440 post buy back and accordingly Issued, Subscribed and Paid-up Capital reduced to Rs.18,87,94,400/-.
Documents relating to buyback are available on Companyâs website www.renjewellery.com.
Apart from the above, there were no changes in the Share Capital during the Financial Year under review.
Issue of shares under the Employeesâ Stock Purchase Scheme (ESPS)
Compensation Committee of the Board of Directors of the Company, inter alia, administers the Employeesâ Stock Purchase Scheme of the Company in accordance with the applicable guidelines of Securities and Exchange Board of India.
The Company had opted for trust route for offering ESPS and 720000 shares were issued to the RJL Employee Welfare Trust (ESPS Trust) in F.Y 2008-09 for onward offering to the recommended employees. Hence, Basic and Diluted Earning Per Share (EPS) is Rs.16.19.
Your Company, through ESPS Trust, had offered the ESPS shares to the recommended employees under the Tranch - I and Tranch - II of RJL Employeesâ Stock Purchase Scheme - 2008 (RJL ESPS - 2008).
During the financial year under review, with the approval of shareholders obtained through a Postal Ballot process, the Company introduced and implemented the RJL - Employees Stock Purchase Scheme 2017 (âRJL ESPS-2017â) for issue and/ or offer and/or transfer of not exceeding 15,00,000 fully paid-up Equity Shares of face value of Rs.10 each, to eligible employees of the Company as well as that of its subsidiaries.
The said RJL ESPS-2017 was introduced to replace the existing RJL - ESPS-2008.
The new Scheme âRJL ESPS-2017â was approved by the Board of Directors through Circular Resolution passed on October 13, 2017 and by the members through Postal Ballot Resolutions passed on November 20, 2017.
Under the Tranch -1 of RJL ESPS - 2017, the Company has offered 4,50,000 ESPS shares to the recommended employees.
The RJL ESPS - 2017 is implemented by Compensation Committee in accordance with the requirements of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, (SEBI SBEB Regulation) and other applicable laws.
During the financial year under review, the Company has issued 3,00,000 ESPS shares to Mr. Parag Shah which is exceeding 1% of the issued capital of the Company.
RJL ESPS-2008 and RJL ESPS -2017 of the Company are in compliance with the SEBI SBEB Regulations.
As required under Regulation 13 of the said Regulations, the Company has obtained a Certificate from M/s. Damania & Varaiya, Chartered Accountants, the Statutory Auditors of the Company, certifying that the Schemes are implemented in accordance with these regulations and the resolutions of the Company. The same would be placed before the members at the ensuing AGM and a copy of the same shall be available for inspection at the Registered Office of the Company.
As stipulated under SEBI SBEB Regulations, read with the circular issued by SEBI on June 16, 2015 and Rule 12 (9) of Companies (Share Capital and Debentures) Rules, 2014, the applicable disclousres as on March 31, 2018, are given below:
#Tranch I and II of RJL ESPS - 2008 have lapsed on February 28, 2014 and July 31, 2015 respectively.
Implementation of RJL - Employees Stock Option Plan 2018 (RJL ESOP 2018)
The Board of Directors of the Company at their Meeting held on May 28, 2018, has approved the âRJL - Employees Stock Option Plan 2018â (RJL ESOP 2018), subject to shareholdersâ approval which will be implemented by Compensation Committee constituted under Section 178 of the Companies Act, 2013, in accordance with the requirements of Securities and Exchange Board Of India (Share Based Employee Benefits) Regulations, 2014 (âSEBI SBEB Regulationsâ) and other applicable laws.
The Board is proposing the said RJL ESOP 2018 for the approval of the members at the ensuing Annual General Meeting, pursuant to the provisions of section 42 and 62 (1) (b) and all other applicable provisions, if any, of the Companies Act, 2013 and as per the requirement of Clause 6 of the SEBI SBEB Regulations.
The details of the RJL ESOP 2018 are provided in the AGM Notice forming part of this Annual Report.
Listing
At present 18,879,440 Equity Shares of the Company are listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited.
The Company has paid the applicable listing fees to these Stock Exchanges for the financial year 2018-19. The Companyâs shares are compulsorily tradable in electronic form and the Company has established connectivity with both the depositories, i.e. Central Depository Services (India) Ltd. (CDSL) & National Securities Depository Ltd. (NSDL).
Your Company has fully complied with the Securities and Exchange Board of India CircularâCir/ISD/3/2011, dated June 17, 2011 by achieving 100% of promoterâs and promoter groupâs shareholding in dematerialized form. Therefore, the securities of Company are traded in the normal segment of the Exchanges.
Awards/Recognition
Your Company has always strived for the best quality and designs adhering necessary Ethical Standards. The Company has been consistently receiving recognition by various Trade Organizations and Councils, for itsâ performance and achievements. Following are some of the awards/recognition received by the Company in the past:
- GJEPC Award for outstanding Export Performance under the category âStudded Precious Metal Jewellery Exportsâ, in 2017
- GJEPC Award for topping Export Performance under the category âStudded Precious Metal Jewellery Exportsâ, in 2016
- Accorded with membership of Responsible Jewellery Council (RJC), in 2016
- GJEPC Award for outstanding Export Performance under the category âStudded Precious Metal Jewellery Exportsâ, in 2015
- GJEPC Award for outstanding Export Performance under the category âStudded Precious Metal Jewellery Exportsâ, in 2012
- GJEPC Award for topping the export performance under the category âStudded Precious Metal Jewellery Exports from EPZ/ EOU Complexesâ in 2011
- Emerging India Awards 2009
- GJEPC Award for being the largest exporter of Studded Precious Metal Jewellery in 2008
- Wal-Martâs âInternational Supplier of the Yearâ Award, in 2004
- SEEPZ-SEZ Star 2000-2001 Award
Corporate Governance
The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by Securities and Exchange Board of India. The Company has taken appropriate steps and measures to comply with all the applicable provisions of Regulation 17 to 27 of SEBI (LODR) Regulations, 2015 and Section 177 of the Companies Act, 2013.
A separate report on Corporate Governance, as stipulated under Regulation 34(3) read with Schedule V of SEBI (LODR) Regulations, 2015, along with a certificate of Practicing Company Secretary of the Company, forms an integral part of this Annual Report. A certificate from the Managing Director and CFO of the Company confirming internal controls and checks pertaining to financial statements for the year ended March 31, 2018 was placed before the Board of Directors and the Board has noted the same.
Cash Flow Statement
In conformity with the provisions of Regulation 34 (2) (c) of the SEBI (LODR) Regulations, 2015, the cash flow statement for the year ended March 31, 2018 is annexed hereto.
Directors & Key Managerial Personnel
As per the provisions of Section 149 of the Companies Act, 2013 and Regulation 17 of SEBI (LODR) Regulations, 2015, the Company is compliant of the requirement of having at least 50% of the total number of Directors as Independent Directors and one lady director on the Board of the Company.
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Neville R. Tata (DIN: 00036648), Executive Director of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for reappointment.
Brief resume of the Director proposed to be appointed/ re-appointed, nature of their expertise in specific functional areas and names of companies in which they hold Directorships and Membership/ Chairmanship of Board Committees, as stipulated under Regulation 17 of SEBI (LODR) Regulations, 2015 are provided in the Notice forming part of this Annual Report.
Key Managerial Personnel (KMP):
Pursuant to the provisions of Section 203 of the Companies Act, 2013 and Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the following are whole-time Key Managerial Personnel of the Company as on March 31, 2018:
1. Mr. Hitesh Shah - Managing Director
2. Mr. G. M. Walavalkar - Company Secretary
3. Mr. Dilip Joshi - Chief Financial Officer
During the year under review, there is no change in the Board of Directors of the Company.
Declaration by Independent Director
The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16(b) of SEBI (LODR) Regulations, 2015.
Nomination and Remuneration Policy
The policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and Remuneration Committee and approved by the Board of Directors, in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Regulation 19 of SEBI (LODR) Regulations, 2015.
This policy lays down the criteria for determining qualifications, positive attributes and independence of directors and evaluation of Independent Director and the Board. This policy also includes the Policy on Board diversity. The said Nomination and Remuneration policy is posted on the website of the Company www.reniewellery.com.
Annual Evaluation of Board, Committees and Directors
Pursuant to the provision of Section 134(3) (p) read with Rule 8(4) of Companies (Accounts) Rules, 2014 and part D of Schedule II of SEBI (LODR) Regulations, 2015 the Nomination and Remuneration Committee has devised a criteria for performance evaluation of Independent Directors, Board, Committees and other individual Directors which include criteria for performance evaluation of the Non-Executive Directors and Executive Directors.
The Independent Directors and Non-Independent Directors at their respective meetings evaluated performance of fellow directors based on factors like leadership quality, attitude, initiatives and responsibility undertaken, decision making, commitment and achievements during the financial year under review.
Meeting of Independent Directors
In accordance with the Clause VII of Schedule IV of the Companies Act 2013 and Regulation 25(3) of SEBI (LODR) Regulations, 2015, a separate meeting of Independent Directors was held on May 08, 2018 without the attendance of Non-Independent directors and members of the management.
At this meeting the Independent Directors reviewed the performance of Non-Independent Directors including Executive Chairman and Managing Director and the Board as a whole.
Familiarisation Program for Independent Directors
The Company has formulated Familiarisation Program to familiarise the Independent Directors with the Company and its business. The details of the program and related matters are posted on the website of the Company www.renjewellery.com.
Disclosure of Pecuniary Relationship
There was no pecuniary relationship or transactions of the Non-Executive Directors vis-a-vis the Company during the year under review. Also, no payment, except sitting fees, was made to any of the Non-Executive Directors of the Company. No convertible instruments are held by any of the Non-Executive Directors.
Directorsâ Responsibility Statement
As required under provisions of Section 134 (3)(C) of the Companies Act, 2013 the Directors hereby state that:
a) in the preparation of the annual accounts for the year ended March 31, 2018, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, 2013, have been followed and there are no material departures from the same;
b) selected accounting policies were applied 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 as at March 31, 2018 and of the profit of the Company for the year ended on that date;
c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities to the best of the Directorsâ knowledge and ability;
d) the annual accounts have been prepared on a âgoing concernâ basis;
e) internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and are operating effectively and
f) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
Auditors
M/s Damania & Varaiya., Chartered Accountants, the statutory auditors of the Company have expressed their inability to continue as auditors of the Company and tendered their resignation.
In order to fill the casual vacancy due to resignation of M/s Damania & Varaiya, the Board, at its meeting held on May 28, 2018, on recommendation of Audit Committee, have decided to recommend to the shareholders, the appointment of M/s Chaturvedi and Shah, Chartered Accountants (Firm Registration No:101720W) as new statutory auditors of Company to hold office from the conclusion of 29th Annual General Meeting till the conclusion of 34th Annual General Meeting.
The requirement to place the matter relating to ratification of appointment of Auditors by members at every Annual General Meeting is done away with by the Ministry of Corporate Affairs vide its notification dated May 7, 2018. Hence, there will be no ratification at AGM of appointment of Auditors, who will be appointed in the ensuing Annual General Meeting.
M/s Chaturvedi and Shah have given their consent to act as Statutory Auditors of the Company and have also confirmed that their appointment, if made, would be within the prescribed limits under Section 141 of the Companies Act, 2013.
Auditorsâ Report
The Notes on financial statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments by the Board. There is no qualification / reservation / adverse remark / disclaimer made in the Auditorsâ Report for the financial year 2017-18.
Internal Auditors
In accordance with provisions of Sections 138 of the Companies Act, 2013 and pursuant to the recommendation of the Audit Committee, M/s. Jayesh Dadia & Associates, Chartered Accountants, Mumbai have been appointed as Internal Auditors of the Company for conducting Internal Audit of the Company for the Financial Year 2017-18.
The Internal Auditors independently evaluate the internal controls, adherence to and compliance with the procedures, guidelines and statutory requirements. The Audit Committee of Board periodically reviews the reports of the internal auditors and corrective actions taken by the Management with regard thereto.
Internal Financial Controls
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
Secretarial Auditor
In accordance with provisions of Sections 204 of the Companies Act, 2013, the Board has appointed M/s V. V. Chakradeo & Co., Practicing Company Secretaries, Mumbai, as Secretarial Auditors of the Company to conduct Secretarial Audit for the financial year 2017-18. The Secretarial Audit Report for the financial year ended March 31, 2018 is enclosed herewith as Annexure - I forming part of this Directorâs Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Deposits
There was no deposit accepted by the Company within the meaning of Section 58A of the Companies Act, 1956 and Rules made there under. During the financial year under review, the Company has neither invited nor accepted any deposit under Section 73 of the Companies Act, 2013 and the rules made there under and therefore, no amount of principal or interest was outstanding as of the date of the Balance Sheet.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Following is the information required under Section 134 (3) (m) ofthe Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 for the year ended March 31, 2018
a) Conservation of Energy:
The Company continued energy conservation efforts during the year. It has closely monitored power consumption and running hours on day to day basis, thus resulting in optimum utilization of energy. The office and production areas are fitted with energy saving devices to conserve energy in the long run.
Contracts and Arrangements with Related Parties
All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an armâs length basis.
During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board is posed on the Companyâs website www.renjewellery.com.
Your Directors draw attention of the members to the related party disclosures sets out in the financial statements of the Company.
Corporate Social Responsibility (CSR)
The Company has established the Corporate Social Responsibility Committee (CSR Committee) which has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. The said CSR Policy is posed on the Companyâs website www.renjewellery.com.
The Company has identified four focus areas of engagement which are as under:
Medical, Health Care and Social Welfare: Affordable solutions for healthcare and social welfare through improved access, health awareness.
Educational: Access to quality education, training and skill enhancement.
Humanitarian: Creating sustainable livelihood, addressing poverty, hunger and malnutrition.
Environmental, Animal Welfare, Cultural and Religious: Ensuring environmental sustainability, ecological balance, animal welfare, conservation of natural resources and protection of national heritage, art, culture and religion.
As required under Section 135 of the Companies Act, 2013 and Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Annual Report on CSR activities is enclosed herewith as Annexure - II forming part of this Directorâs Report.
Risk Management
The Board of Directors has adopted Risk Management Policy for the Company which provides for identification, assessment and control of risks which in the opinion of the Board may threaten the existence of the Company.
The Management, through a properly defined framework in terms of the aforesaid policy, identifies, monitors, controls and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives.
The Audit Committee and the Board periodically discuss the significant business risks identified by the Management and review the measures taken for their mitigation.
Human Resources
Employees are the key assets of the Company and the Company has created a healthy and productive work environment which encourages excellence. Your Company has put in place a scalable requirement and human resource management process, which enables it to attract and retain employees of the high caliber. The Company continuously invests in training staff in the latest technology.
Implementation of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has constituted a Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Committee meets regularly and takes up programs to spread awareness and educate employees about prevention of Sexual Harassment at Workplace.
No instances of Sexual Harassment of Women under the said Act have been reported in any of the units of the Company during the financial year under review.
Other Disclosures
CSR Committee
The CSR Committee comprises of Mr. Niranjan A. Shah as Chairman, Mr. Hitesh M. Shah and Mr. Anil K. Chopra, as other members.
Audit Committee
The Audit Committee comprises of Independent Directors namely Mr. Veerkumar C. Shah as Chairman, Mr. Arun P Sathe and Mr. Vishwas V. Mehendale, as other members.
All the recommendations made by the Audit Committee were accepted by the Board.
Meetings of the Board
Six meetings of the Board of Directors were held during the financial year under review. For further details, please refer report on Corporate Governance enclosed in this Annual Report.
Particulars of Loans given, Investments made, Guarantees given and Securities provided
Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient, as required under Section 186 of the Companies Act, 2013 are provided in the standalone financial statement (Please refer to Note 54 to the standalone financial statement).
Particulars of Employees
The disclosure pursuant to Section 197(12) read with rule 5(1) and 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed herewith as Annexure - III forming part of this Directorâs Report.
Compliance with Secretarial Standards on Board and General Meetings
During the Financial Year, your Company has complied with applicable Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI).
Extract of Annual Return
An extract of Annual Return in Form MGT-9 as provided under sub-section (3) of Section 92 of the Companies Act, 2013 read with and rule 12(1) of the Companies (Management and Administration) Rules, 2014 is enclosed herewith as Annexure - IV forming part of this Directorâs Report.
Transfer of Unclaimed Dividend to Investor Education and Protection Fund (IEPF)
In terms of Section 125 of the Companies Act, 2013, any unclaimed or unpaid Dividend relating to the financial year 2010-11 is due for remittance to the Investor Education and Protection Fund (IEPF) established by the Central Government, on October 07, 2018. For the unclaimed dividend relating to other financial years and the respective IEPF Transfer due dates, please refer the statement of IEPF transfer provided in Report on Corporate Governance.
During the financial year under review, the Company has transferred unclaimed dividend for FY 2009-10 amounting to Rs.80,374/-, to the IEPF.
Details of Significant and Material orders passed by the Regulators or Courts
During the financial year under review, no order had been passed by the regulators/ courts or tribunals which have an effect on the going concern status of the company and its operations.
Cautionary Statement
Statements in this Directors Report and Management Discussion & Analysis describing the Companyâs objectives, projections, estimates, expectations or predictions may be âforward-looking statementsâ within the meaning of applicable Securities laws and regulations. Actual results could differ materially from those expressed or implied due to risk of uncertainties associated with our expectations with respect to, but not limited to, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business, technological changes, exposure to market risks, general economic and political conditions in India and which have an impact on our business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, the performance of the financial markets in India and globally and raw material availability and prices, demand & pricing in the Companyâs principal markets, and other incidental factors.
Acknowledgements
Your Directors take this opportunity to thank the Companyâs customers, members, vendors and Bankers for their continued support during the year. Your Directors also wish to thank the Government of India and its various agencies, the Santacruz Electronics Export Processing Zone, the Customs and Excise/GST department, the Reserve Bank of India, the State Governments of Maharashtra, and other local Government Bodies for their support and look forward to their continued support in the future.
Your Directors also place on record their appreciation for the excellent contribution made by all Employees of the Company through their commitment, competence, co-operation and diligence to duty in achieving consistent growth for the Company.
For and on behalf of the Board,
Niranjan Shah Hitesh Shah
Executive Chairman Managing Director
(DIN - 00036439) (DIN - 00036338)
Mumbai, May 28, 2018
Mar 31, 2016
Dear Members,
The Directors take great pleasure in presenting the 27th report on the business and operations of your Company along with the Annual Report and Audited Financial Statements for the Financial Year 2015-16.
Financial Highlights
Your Company earned a Profit before Tax (PBT) of Rs. 391 million, as compared to PBT of Rs. 372 million in the previous year. Highlights of the financial performance (Standalone) are as follows:
(Rs. in Million)
|
F.Y. 2015-16 |
F.Y. 2014-15 |
Sales |
11429 |
10604 |
Gross Profit |
741 |
648 |
PBID |
531 |
574 |
Less: Interest |
63 |
92 |
Less: Depreciation |
77 |
110 |
PBT |
391 |
372 |
Provision for Tax |
56 |
28 |
PAT |
335 |
344 |
Add: Balance brought forward from PY |
2590 |
2290 |
Less: Residual value representing expired useful life of asset as per Schedule-II |
|
13 |
Profit available for appropriation |
2925 |
2621 |
Appropriations: |
|
|
Transfer to Reserve Fund General Reserve |
- |
9 |
Dividend on Equity Shares |
38 |
19 |
Corporate Dividend Tax |
8 |
3 |
Balance carried forward |
2879 |
2590 |
The consolidated revenue from operations of the Company for the year ended March 31, 2016 was Rs. 13195.80 million (PY Rs. 12764.42 million), an increase of 3.38 % on a year-on-year basis. An Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs. 827.64 million (PY. Rs.752.23 million) an increase of 10.02 % on a year-on-year basis. Profit after Tax (PAT) was Rs. 474.42 million (PY Rs. 401.57 million) an increase of 18.14% on a year-on-year basis. A detailed analysis of the financials is given in the Managementâs Discussion and Analysis Report that forms part of this Annual Report.
Dividend
In view of the profit levels reported by your Company in the first three quarters of the financial year under review, an Interim Dividend of 20% i.e. Rs. 2/- per share was paid in the month of March 2016. Your Directors recommend the aforesaid interim dividend as the final dividend for the financial year ended March 31, 2016.
Transfer to Reserves
During the year under review, your Company has not transferred any amount to General Reserve Account.
Material Changes & Commitments
No material changes and commitments, affecting the financial position of the Company have occurred after the end of the financial year 2015-16 and till the date of this report.
Managementâs Discussion and Analysis Report
Managementâs Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 (2) (e) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI (LODR) Regulations, 2015), is presented in a separate section forming part of this Annual Report.
Subsidiaries
As on signing date of this report, your Company had following direct and indirect subsidiary companies/ LLP:
Direct Subsidiary Companies:
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited, India
4. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh
5. Verigold Jewellery DMCC, Dubai
Indirect (Step-down) Subsidiary Companies:
1. House Full International Ltd., India (Subsidiary of N. Kumar Diamond Exports Limited)
2. House Full Supply Chain Management Ltd., India (Subsidiary of House Full International Ltd.)
Limited Liability Partnership:
1. Aurelle Jewellery LLP, India
Financial statements/reports of the subsidiaries:
The Company has seven subsidiaries including five wholly owned subsidiary and two step-down subsidiaries. The Board of Directors of the Company reviewed the affairs of subsidiaries of the Company. In accordance with Section 129(3) of the Companies Act, 2013, the Company has prepared consolidated financial statements of the Company and all its subsidiaries, which form part of the Annual Report.
Further, a statement containing the salient features of the financial statement of the subsidiaries in the format prescribed i.e. Form AOC-1, (Pursuant to first Proviso to sub-section (3) of section 129 read with Rule 5 of Companies (Accounts) Rules, 2014) has been attached separately to this Annual Report. The Company will make available the accounts of subsidiaries to any member of the Company on request.
Consolidated Accounts
In accordance with the requirements of Companies Act, 2013 and Accounting Standards AS-21 prescribed by the Institute of Chartered Accountants of India, the Consolidated Financial Statements of the Company and its subsidiary is provided in this Annual Report.
Share Capital
Issue of equity shares with differential rights
During the financial year under review, there was no issue of equity shares with differential rights in terms of Rule 4 (4) of Companies (Share Capital and Debentures) Rules, 2014.
Issue of sweat equity shares
During the financial year under review, there was no issue of sweat equity shares as provided in Rule 8 (13) of Companies (Share Capital and Debentures) Rules, 2014.
Issue of shares under the Employee Stock Purchase Scheme
ESPS Compensation Committee of the Board of Directors of the Company, inter alia, administers the Employeesâ Stock Purchase Scheme of the Company in accordance with the applicable guidelines of Securities and Exchange Board of India.
Your Company, through RJL Employee Welfare Trust (ESPS Trust), has offered the ESPS shares to the recommended employees under the Tranch - I and Tranch - II of RJL Employeesâ Stock Purchase Scheme - 2008 (RJL ESPS - 2008).
The Company had opted for trust route for offering ESPS and 720000 shares were issued to the ESPS Trust in F.Y. 2008-09 for onward offering to the recommended employees. Hence, basic and Diluted Earnings Per Share (EPS) is Rs. 17.54.
During the financial year under review, the Company has not issued any ESPS shares as well as shares equal to or exceeding 1% of the issued capital to any of the identified employee.
The applicable disclosures as stipulated under the Securities and Exchange Board of India Guidelines and Rule 12 (9) of Companies (Share Capital and Debentures) Rules, 2014, as on March 31, 2016, are given below:
Disclosures with respect to Employees Stock Purchase Scheme of the Company
Date of shareholdersâ approval: |
September 5, 2008 |
||
|
|
||
Lock-in period: |
% of total Shares transferred to employees that would be released on the expiry of the Lock-in period |
Lock-in period |
|
Tranch I |
Tranch II |
||
33% |
01/09/2010 |
01/02/2012 |
|
33% |
01/09/2011 |
01/02/2013 |
|
33% |
01/09/2012 |
01/02/2014 |
|
The details of the number of shares issued under ESPS |
Please refer the table given below |
||
The price at which such shares are issued |
Tranch I |
Tranch II |
|
Rs. 55/- |
Rs. 65/- |
||
Employee-wise details of the shares issued to; |
Tranch I |
Tranch II |
|
(i) senior managerial personnel; |
4,62,500 |
46,140 |
|
(ii) any other employee who is issued shares in any one year - -amounting to 5% or - - more shares issued during that year; |
|||
(iii) identified employees who were issued shares during any one year equal to or exceeding 1% of the - - issued capital of the company at the time of issuance; |
|||
Consideration received against the issuance of shares, if scheme is implemented directly by the company |
NA, as the scheme is not implemented directly by the company |
||
Loan repaid by the Trust during the year from exercise price received |
Rs. 48.00 Lakh |
Following are the details of the number of shares issued under RJL ESPS - 2008 and itsâ status as on March 31, 2016:
Particulars |
Number of Shares |
|
Shares allotted to ESPS Trust |
7,20,000 |
|
|
Tranch - I |
Tranch - II |
Shares offered to recommended employees by ESPS Trust |
6,17,500 |
2,57,490 |
Shares transferred back to ESPS Trust due to non-acceptance/disqualification |
1,55,000 |
3,000 |
|
4,62,500 |
2,54,490 |
Shares acquired by employees: |
58,334 |
15290 |
Shares transferred back to ESPS Trust due to Surrender / lapse |
404166 |
239200 |
Balance shares to be acquired by the employees# |
0 |
0 |
Balance shares with ESPS Trust to offer |
646376 |
# Tranch I and II of RJL ESPS - 2008 have lapsed on February 28, 2014 and July 31, 2015 respectively.
Listing
At present 19,079,440 Equity Shares of the Company are listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Company has paid the applicable listing fees to these Stock Exchanges for the financial year 2016-17. The Companyâs shares are compulsorily tradable in electronic form and the Company has established connectivity with both the depositories,
i.e. Central Depository Services (India) Ltd. (CDSL) & National Securities Depository Ltd. (NSDL).
Your Company has fully complied with the Securities and Exchange Board of India Circular Cir/ISD/3/2011, dated June 17, 2011 by achieving 100% of promoterâs and promoter groupâs shareholding in dematerialized form. Therefore, the securities of Company are traded in the normal segment of the Exchanges.
Awards/Recognition
Your Company has always strived for the best quality and designs adhering necessary Ethical Standards. The Company has been consistently receiving recognition by various Trade Organizations and Councils, for itsâ performance and achievements. Following are some of the awards/recognition received by the Company in the past:
- Accorded with membership of Responsible Jewellery Council (RJC), in 2016
- GJEPC Award for outstanding Export Performance under the category "Studded Precious Metal Jewellery Exports", in 2015
- GJEPC Award for outstanding Export Performance under the category "Studded Precious Metal Jewellery Exports", in 2012
- GJEPC Award for topping the export performance under the category "Studded Precious Metal Jewellery Exports from EPZ/ EOU Complexes" in 2011
- Emerging India Awards 2009
- GJEPC Award for being the largest exporter of studded precious metal Jewellery in 2008
- Wal-Martâs ''International Supplier of the Yearâ Award, in 2004
- SEEPZ-SEZ Star 2000-2001 Award
Corporate Governance
The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by Securities and Exchange Board of India. The Company has taken appropriate steps and measures to comply with all the applicable provisions of Regulation 17 to 27 of SEBI (LODR) Regulations, 2015 and Section 177 of the Companies Act, 2013.
A separate report on Corporate Governance, as stipulated under Regulation 34(3) read with Schedule
V of SEBI (LODR) Regulations, 2015, along with a certificate of Practicing Company Secretary of the Company, forms an integral part of this Annual Report. A certificate from the Managing Director and CFO of the Company confirming internal controls and checks pertaining to financial statements for the year ended March 31, 2016 was placed before the Board of Directors and the Board has noted the same.
Cash Flow Statement
In conformity with the provisions of Regulation 34 (2) (c) of the SEBI (LODR) Regulations, 2015, the cash flow statement for the year ended March 31, 2016 is annexed hereto.
Human Resources
Employees are the key assets of the Company and the Company has created a healthy and productive work environment which encourages excellence. Your Company has put in place a scalable requirement and human resource management process, which enables it to attract and retain employees of the high caliber. The Company continuously invests in training staff in the latest technology.
Implementation of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has constituted a Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No instances of Sexual Harassment of Women under the said Act have been reported in any of the units of the Company during the financial year under review.
Directors & Key Managerial Personnel As per the provisions Section 149 of the Companies Act, 2013 and Regulation 17 of SEBI (LODR) Regulations, 2015, the Company is compliant of the requirement of having at least one-third of the total number of Directors as Independent Directors and one lady director on the Board of the Company.
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. Neville R. Tata, Executive Director of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for reappointment.
Mr. Niranjan A. Shah was re-appointed as Executive Director designated as Executive Chairman of the Company for a period of five years from August 1, 2011.
The appointment of Mr. Niranjan A. Shah and the remuneration payable to him was approved by the members at the Annual General Meeting held on September 7, 2011.
Since the term of Mr. Niranjan A. Shah is ending on July 31, 2016 and considering his extensive knowledge, business skills, managerial experience and capabilities, the Board of Directors at its meeting held on July 28, 2016 has recommended the reappointment of Mr. Niranjan Shah as whole time Director to be designated as the Executive Chairman of the Company, for a further period of 5 years effective August 01, 2016 up to July 31, 2021, at the ensuing Annual General Meeting of the Company.
As Mr. Niranjan A. Shah will attain the age of 70 years on January 18, 2017, the Board has proposed to get the approval of members by Special Resolution, as per provisions of Section 196 (3) (a) of the Companies Act, 2013.
The Board recommends re-appointment of Mr. Neville R. Tata and Mr. Niranjan A. Shah. Brief resume of the Directors proposed to be re-appointed, nature of their expertise in specific functional areas and names of companies in which they hold Directorships and Membership/ Chairmanship of Board Committees, as stipulated under Regulation 17 of SEBI (LODR) Regulations, 2015 are provided in the Notice forming part of this Annual Report.
Key Managerial Personnel (KMP)
Pursuant to the provisions of Section 203 of the Companies Act, 2013 and Rule 8 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the following are whole time Key Managerial Personnel of the Company:
1. Mr. Sumit Shah - Managing Director
2. Mr. G. M. Walavalkar - Company Secretary
3. Mr. Dilip Joshi - Chief Financial Officer
During the year under review, there is no change in the Board of Directors of the Company
Declaration by Independent Director
The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of independence as prescribed under sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16(b) of SEBI (LODR) Regulations, 2015.
Nomination and Remuneration Policy
The policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and Remuneration Committee and approved by the Board of Directors, in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto and Regulation 19 of SEBI (LODR) Regulations, 2015.
This policy lays down the criteria for determining qualifications, positive attributes and independence of directors and evaluation of Independent Director and the Board. This policy also includes the Policy on Board diversity. The said Nomination and Remuneration policy is posted on the website of the Company www.renjewellery.com.
Annual Evaluation of Board, Committees and Directors
Pursuant to the provision of Section 134(3) (p) read with Rule 8(4) of Companies (Accounts) Rules, 2014 and part D of Schedule II of SEBI (LODR) Regulations, 2015, the Nomination and Remuneration Committee has devised a criteria for performance evaluation of Independent Directors, Board, Committees and other individual directors, which include criteria for performance evaluation of the non-executive directors and executive directors.
The Independent Directors and Non Independent Directors at their respective meetings evaluated performance of fellow directors based on factors like leadership quality, attitude, initiatives and responsibility undertaken, decision making, commitment and achievements during the financial year under review.
Meeting of Independent Directors
In accordance with the Clause VII of Schedule IV of the Companies Act 2013 and Regulation 25(3) of SEBI (LODR) Regulations, 2015, a separate meeting of Independent Directors was held on July 19, 2016 without the attendance of non-independent directors and members of the management.
At this meeting the Independent Directors reviewed the performance of non independent directors including Executive Chairman and Managing Director and the Board as a whole.
Familiarization Program for Independent Directors
The Company has formulated Familiarization Program to familiarize the Independent Directors with the Company and its business. The details of the program and related matters are posted on the website of the Company www.renjewellery.com.
Disclosure of Pecuniary Relationship
There was no pecuniary relationship or transactions of the non-executive directors vis-a-vis the Company during the year under review. Also, no payment, except sitting fees, was made to any of the non-executive directors of the Company. No convertible instruments are held by any of the non-executive directors.
Directorsâ Responsibility Statement
As required under provisions of Section 134 (3)(C) of the Companies Act, 2013 the Directors hereby state that:
a) in the preparation of the annual accounts for the year ended March 31, 2016, the applicable accounting standards read with requirements set out under Schedule III to the Companies Act, 2013, have been followed and there are no material departures from the same;
b) selected accounting policies were applied 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 as at March 31, 2016 and of the profit of the Company for the year ended on that date;
c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities to the best of the Directorsâ knowledge and ability;
d) The annual accounts have been prepared on a ''going concernâ basis;
e) Internal financial controls to be followed by the Company have been laid down and that such internal financial controls are adequate and are operating effectively and
f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
Auditors
M/s J. K. Shah & Co., Chartered Accountants, the present Statutory Auditors of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.
The Board, at its meeting held on July 28, 2016, on recommendation of Audit Committee, decided to recommend their re-appointment at the ensuing Annual General Meeting till the conclusion of the next Annual General Meeting and to fix their remuneration. The Company has received a letter from M/s. J. K. Shah & Co., Chartered Accountants expressing willingness for their appointment as Statutory Auditors and to the effect that their re-appointment, if made, would be within the prescribed limits under Section 141(3) (g) of the Companies Act, 2013.
Auditorsâ Report
The Notes on financial statement referred to in the Auditorsâ Report are self-explanatory and do not call for any further comments by the Board. There is no qualification / reservation / adverse remark / disclaimer made in the Auditorsâ Report for the financial year 2015-16.
Internal Auditors:
In accordance with provisions of Sections 138 of the Companies Act, 2013 and pursuant to the recommendation of the Audit Committee, M/s. Jayesh Dadia & Associates, Chartered Accountants, Mumbai have been appointed as Internal Auditors of the Company for conducting Internal Audit of the Company for the Financial Year 2015-16.
The Internal Auditors independently evaluate the internal controls, adherence to and compliance with the procedures, guidelines and statutory requirements. The Audit Committee of Board periodically reviews the reports of the internal auditors and corrective actions taken by the Management with regard thereto.
Internal Financial Controls
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.
Secretarial Auditor
In accordance with provisions of Sections 204 of the Companies Act, 2013, the Board has appointed M/s V. V. Chakradeo & Co., Practicing Company Secretaries, Mumbai, as Secretarial Auditors of the Company to conduct Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report for the financial year ended March 31, 2016 is enclosed herewith as Annexure - I forming part of this Directorâs Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.
Deposits
There was no deposit accepted by the Company within the meaning of Section 58A of the Companies Act, 1956 and Rules made there under. During the financial year under review, the Company has neither invited nor accepted any deposit under Section 73 of the Companies Act, 2013 and the rules made there under and therefore, no amount of principal or interest was outstanding as of the date of the Balance Sheet.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
Following is the information required under Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 for the year ended March 31, 2016
a. Conservation of Energy:
The Company continued energy conservation efforts during the year. It has closely monitored power consumption and running hours on day to day basis, thus resulting in optimum utilization of energy. The office and production areas are fitted with energy saving devices to conserve energy in the long run.
(i) the steps taken or impact on conservation of energy |
LED lights installed in place of CFLs which are more energy efficient with minimum maintenance and long life. Further, offices have been designed to maximize the use of ambient lighting while conserving the air conditioning. The expense on power in relation to income is nominal and under control. This step has helped reducing energy cost by 10%. |
(ii) t he steps taken by the company for utilizing alternate sources of energy |
Solar Panels installed at the Unit I of the company as alternate source of energy. |
(iii) the capital investment on energy conservation equipments; |
Corpus for installing Solar panels is Rs. 8,06,900/- |
b. Technology Absorption:
(i) the efforts made towards technology absorption |
The Company continuously monitors and keep track of technological up gradation in the field of Jewellery manufacturing and the same are reviewed and considered for implementation. Your Company continued its focus on quality up-gradation and product enhancements. |
(ii) the benefits derived like product improvement, cost reduction, product development or import substitution |
a. Enhanced productivity & reduction in production time b. Total traceability of each piece during entire manufacturing process through customized software c. Reduction in re-work & rejection in manufacturing. d. Enhancement of product spectrum e. Improvement in quality of existing products. |
(iii) in case of imported technology (imported during the last three years reckoned from the beginning of FY)- (a) the details of technology imported; (b) the year of import; (c) whether technology been fully absorbed; (d) if not fully absorbed, areas where absorption has not taken place & reasons thereof; and |
NA |
(iv) The expenditure As per the established Accounting Policy incurred on Research expenditure incurred on Research & and Development Development remains merged with the respective heads. |
c. Foreign exchange earnings and outgo:
(Rs. in Lakh)
|
FY 2015-16 |
FY 2014-15 |
Foreign Exchange Earnings |
112,420.61 |
102,885.69 |
Foreign Exchange Outgo |
59,360.69 |
52,039.38 |
Contracts and Arrangements with Related Parties
All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an armâs length basis.
During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board is posed on the Companyâs website www.renjewellery.com.
Your Directors draw attention of the members to the related party disclosures sets out in the financial statements of the Company.
Corporate Social Responsibility (CSR)
The Company has established the Corporate Social Responsibility Committee (CSR Committee) which has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by the Board. The said CSR Policy is posed on the Companyâs website www.renjewellery.com.
The Company has identified four focus areas of engagement which are as under:
Medical, Health Care and Social Welfare:
Affordable solutions for healthcare and social welfare through improved access, health awareness
Educational: Access to quality education, training and skill enhancement
Humanitarian: Creating sustainable livelihood, addressing poverty, hunger and malnutrition.
Environmental, Cultural and Animal Welfare:
Ensuring environmental sustainability, ecological balance, animal welfare, conservation of natural resources and protection of national heritage, art and culture
As required under Section 135 of the Companies Act, 2013 and Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Annual Report on CSR activities is enclosed herewith as Annexure - II forming part of this Directorâs Report.
Risk Management
The Board of Directors has adopted Risk Management Policy for the Company which provides for identification, assessment and control of risks which in the opinion of the Board may threaten the existence of the Company.
The Management, through a properly defined framework in terms of the aforesaid policy, identifies, monitors, controls and reports on the principal risks and uncertainties that can impact its ability to achieve its strategic objectives.
The Audit Committee and the Board periodically discuss the significant business risks identified by the Management and review the measures taken for their mitigation.
Other Disclosures CSR Committee
The CSR Committee comprises of Mr. Niranjan A. Shah as Chairman, Mr. Hitesh M. Shah and Mr. Anil K. Chopra, as other members.
Audit Committee
The Audit Committee comprises of Independent Directors namely Mr. Veekumar C. Shah as Chairman, Mr. Arun P Sathe and Mr. Vishwas V. Mehendale, as other members.
All the recommendations made by the Audit Committee were accepted by the Board.
Meetings of the Board
Six meetings of the Board of Directors were held during the financial year under review. For further details, please refer report on Corporate Governance enclosed in this Annual Report.
Particulars of Loans given, Investments made, Guarantees given and Securities provided
Particulars of loans given, investments made, guarantees given and securities provided along with the purpose for which the loan or guarantee or security is proposed to be utilized by the recipient, as required under Section 186 of the Companies Act, 2013 are provided in the standalone financial statement (Please refer to Note 40 to the standalone financial statement).
Particulars of Employees
The disclosure pursuant to Section 197(12) read with rule 5(1)(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is enclosed herewith as Annexure - III forming part of this Directorâs Report.
Extract of Annual Return
An extract of Annual Return in Form MGT 9 as provided under sub-section (3) of Section 92 of the Companies Act, 2013 read with and rule 12(1) of the Companies (Management and Administration) Rules, 2014 is enclosed herewith as Annexure - IV forming part of this Directorâs Report.
Transfer of Unclaimed Dividend to Investor Education and Protection Fund (IEPF)
In terms of Section 125 of the Companies Act, 2013, any unclaimed or unpaid Dividend relating to the financial year 2008/09 is due for remittance, to the Investor Education and Protection Fund (IEPF) established by the Central Government, on September 27, 2016. For the unclaimed dividend relating to other financial years and the respective IEPF Transfer due dates, please refer the statement of IEPF transfer provided in Report on Corporate Governance.
During the financial year under review, the Company has transferred unclaimed dividend for FY 2007-08 amounting to Rs. 64,956/-, to the IEPF.
Details of Significant and Material orders passed by the Regulators or Courts
During the financial year under review, no order had been passed by the regulators/ courts or tribunals which have an effect on the going concern status of the company and its operations.
Cautionary Statement
Statements in this Directors Report and Management Discussion & Analysis describing the Companyâs 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 due to risk of uncertainties associated with our expectations with respect to, but not limited to, changes in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts business, technological changes, exposure to market risks, general economic and political conditions in India and which have an impact on our business activities or investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, the performance of the financial markets in India and globally and raw material availability and prices, demand & pricing in the Companyâs principal markets, and other incidental factors.
Acknowledgements
Your Directors take this opportunity to thank the Companyâs customers, members, vendors and Bankers for their continued support during the year. Your Directors also wish to thank the Government of India and its various agencies, the Santacruz Electronics Export Processing Zone, the Customs and Excise department, the Reserve Bank of India, the State Governments of Maharashtra, and other local Government Bodies for their support, and look forward to their continued support in the future.
Your Directors also place on record their appreciation for the excellent contribution made by all Employees of the Company through their commitment, competence, co-operation and diligence to duty in achieving consistent growth for the Company.
For and on behalf of the Board,
Niranjan Shah Hitesh Shah
Executive Chairman Executive Director
Mumbai, July 28, 2016
Mar 31, 2015
The Directors take great pleasure in presenting the 26th report on the
business and operations of your Company along with the Annual Report
and Audited Financial Statements for the Financial Year 2014-15.
Financial Highlights
Your Company earned a Profit Before Tax (PBT) of Rs. 372 million, as
compared to PBT of Rs. 328 million in the previous year. Highlights of
the financial performance (Standalone) are as follows:
(Rs. in million)
F.Y 2014-15 F.Y 2013-14
Sales 10604 9823
Gross Profit 648 693
PBID 574 478
Less: Interest 92 81
Less: Depreciation 110 69
PBT 372 328
Provision for Tax 28 57
PAT 344 271
Add: Balance brought
forward from PY 2290 2048
Less: Residual value representing expired
useful life of asset
as per Schedule-II 13 -
Profit available for
appropriation 2621 2319
Appropriations:
Transfer to Reserve Fund
General Reserve 9 7
Dividend on Equity Shares 19 19
Corporate Dividend Tax 3 3
Balance carried forward 2590 2290
The consolidated revenue from operations of the Company for the year
ended March 31, 2015 was Rs. 12764.42 million (RY Rs. 12221.60 million), an
increase of 4.44% on a year-on-year basis. An earnings before interest,
tax, depreciation and amortization (EBITDA) was Rs. 752.23 million (RY Rs.
620.90 million) an increase of 21.15% on a year-on-year basis. Profit
After tax (PAT) was Rs. 401.57 million (RY Rs. 294.83 million) an increase
of 36.20% on a year-on-year basis. A detailed analysis of the
financials is given in the Management's Discussion and Analysis Report
that forms part of this Annual Report.
Dividend
The Directors recommend a dividend of 10% i.e. Rs. 1/- per share (last
year Rs. 1/- per equity share), subject to approval of the shareholders
at the ensuing 26th Annual General Meeting. The total outgo on account
of dividend amounts to Rs. 19.08 million. The dividend, if declared at
the meeting, shall be paid within the stipulated period, to those
members of the Company whose names appear on the Register of Members of
the Company as on September 23, 2015. In respect of shares held in
Electronic form, the dividend will be paid to the beneficial owners as
per details furnished by the Depositories for this purpose at the close
of business hours on September 15, 2015.
Transfer to Reserves
During the year, your Company has transferred Rs.9.00 crore to General
Reserve Account.
Material Changes and Commitments
No material changes and commitments, affecting the financial position
of the Company have occurred after the end of the financial year
2014-15 and till the date of this report.
Management's Discussion and Analysis Report
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges, is presented in a separate section forming part of this
Annual Report.
Subsidiaries
As on signing date of this report your Company has following direct and
indirect subsidiary companies/LLP:
Direct Subsidiary Companies:
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited, India
4. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh
5. Verigold Jewellery DMCC, Dubai
Indirect (Step-down) Subsidiary Companies:
1. House Full International Ltd., India
(Subsidiary of N. Kumar Diamond Exports Limited)
2. House Full Supply Chain Management Ltd., India (Subsidiary of House
Full International Ltd.)
Limited Liability Partnership:
1. Aurelle Jewellery LLR India
Financial Statements/Reports of the Subsidiaries:
The Company has seven subsidiaries including five wholly owned
subsidiaries and two step- down subsidiaries. The Board of Directors of
the Company reviewed the affairs of subsidiaries of the Company. In
accordance with Section 129(3) of the Companies Act, 2013, the Company
has prepared consolidated financial statements of the Company and all
its subsidiaries, which form part of the Annual Report.
Further, a statement containing the salient features of the financial
statement of the subsidiaries in the prescribed format of Form AOC-1,
(Pursuant to first Proviso to sub-section (3) of Section 129 read with
Rule 5 of Companies (Accounts) Rules, 2014) has been added separately
in this Annual Report. The Company will make available the accounts of
subsidiaries upon request by any member of the Company.
Consolidated Accounts
In accordance with the requirements of Companies Act, 2013 and
Accounting Standards AS-21 prescribed by the Institute of Chartered
Accountants of India, the Consolidated Financial Statements of the
Company and its subsidiary is provided in this Annual Report.
Share Capital
Issue of equity shares with differential rights
During the financial year under review, there was no issue of equity
shares with differential rights in terms of Rule 4 (4) of Companies
(Share Capital and Debentures) Rules, 2014.
Issue of Sweat Equity Shares
During the financial year under review, there was no issue of sweat
equity shares as provided in Rule 8 (13) of Companies (Share Capital
and Debentures) Rules, 2014.
Issue of Shares under the Employee Stock Purchase Scheme
ESPS Compensation Committee of the Board of Directors of the Company,
inter alia, administers and monitors the Employees' Stock Purchase
Scheme of the Company in accordance with the applicable SEBI
Guidelines.
Your Company, through RJL Employee Welfare Trust (ESPS Trust), has
offered the ESPS shares to the recommended employees under the Tranch -
I and Tranch - II of RJL Employees' Stock Purchase Scheme - 2008 (RJL
ESPS - 2008).
The Company had opted for trust route for offering ESPS and 720000
shares were issued to the Trust in FY 2008-09 for onward offering to
the recommended employees. Hence, basic and Diluted Earning Per Share
(EPS) isRs. 18.06.
During the financial year under review, the Company has not issued any
ESPS shares as well as shares equal to or exceeding 1% of the issued
capital to any of the identified employee.
The applicable disclosures as stipulated under the SEBI Guidelines and
Rule 12 (9) of Companies (Share Capital and Debentures) Rules, 2014, as
on March 31, 2015, are given below.
Disclosures with respect to Employees Stock Purchase Scheme of the
Company
Date of shareholders' September 5, 2008
approval:
% of total Shares
transferred Lock-in period
to employees that
would be Tranch I Tranch II
released on the
expiry of the
Lock-in period:
Lock"in period 33% 01/09/2010 01/02/2012
33% 01/09/2011 01/02/2013
33% 01/09/2012 01/02/2014
The details of the
number Please refer the table given below
of shares issued
under ESPS
The price at which
such Tranch I Tranch II
shares are issued Rs. 55/_ 65/_
(I) senior managerial
personnel; 4,62,500 46,1400
(ii) any other employee
who is issued shares
in any one year _ _
amounting to 5% or
more shares issued
during that year;
(iii) identified
employees who were
issued shares during
any one year equal
to or _ _
exceeding 1% of the
issued capital of the
Company at the time of
issuance;
Consideration received
ofTharesjRs. scheme" is NA' as the scheme is not
implemented directly by
by the Company
the Company
Loan repaid by the Trust
during the year from NIL
exercise price received
Following are the details of the number of shares issued under RJL ESPS
- 2008 and its' status as on March 31, 2015:
Particulars Numberof Share
Shares allotted to ESPS Trust 7,20,000
Tranch - I Tranch - II
Shares offered to recommended employees by
ESPS Trust 6,17,500 2,57,490
Shares transferred back to ESPS Trust due to
non-acceptance/disqualification
4,62,500 2,54,490
Shares acquired by employees 58,334 14,190
Shares transferred back to ESPS Trust due to
Surrender/lapse 4,04,166 2,02,500
Balance shares to be acquired by the employees 0 37,800
Balance shares with ESPS Trust to offer 6,09,676
Listing
At present 19,079,440 Equity Shares of the Company are listed on the
Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited
(NSE). The Company has paid the applicable listing fees to these Stock
Exchanges for the financial year 2015-16. The Company's shares are
tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. (CDSL) & National Securities
Depository Ltd. (NSDL).
Your Company has fully complied with the SEBI Circular -
Cir/ISD/3/2011, dated June 17, 2011 by achieving 100% of promoter's and
promoter group's shareholding in dematerialized form. Therefore, the
securities of companies are traded in the normal segment of the
Exchanges.
Awards/Recognition
Your Company has always strived for the best quality and designs and
has been consistently receiving recognition by various Trade
Organizations and Councils, for its' performance and achievements.
Following are some of the awards/recognition received by the Company in
the past:
- GJEPC Award for outstanding Export Performance under the category
"Studded Precious Metal Jewellery Exports", in 2012
- GJEPC Award for topping the export performance under the category
"Studded Precious Metal Jewellery Exports from EPZ/EOU Complexes" in
2011
- Emerging India Awards 2009
- GJEPC Award for being the largest exporter of studded precious metal
Jewellery in 2008
- Wal-Mart's 'International Supplier of the Year' Award
- SEEPZ-SEZ Star 2000-2001 Award
Corporate Governance
The Company is committed to maintain the highest standards of corporate
governance and adhere to the corporate governance requirements set out
by SEBI. The Company has taken appropriate steps and measures to comply
with all the applicable provisions of Clause 49 and Section 177 of the
Companies Act, 2013.
A separate report on Corporate Governance, as stipulated under the
Listing Agreement, along with a certificate of Practicing Company
Secretary of the Company, forms an integral part of this Annual Report.
A certificate from the Managing Director and CFO of the Company
confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2015 was placed before the
Board of Directors and the Board has noted the same.
Cash Flow Statement
In conformity with the provisions of Clause 32 of the Listing Agreement
entered with Stock Exchanges, the cash flow statement for the year
ended March 31, 2015 is annexed hereto.
Human Resources
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a scalable requirement and human resource
management process, which enables it to attract and retain employees of
the high caliber. The Company continuously invests in training staff in
the latest technology.
Implementation of Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
The Company has constituted Committee under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No instances of Sexual Harassment of Women under the said Act have been
reported in any of the units of the Company during the financial year
under review.
Directors and Key Managerial Personnel
As per the provisions Section 149 of the Companies Act, 2013 and Clause
49 of the Listing Agreements entered into with Stock Exchanges the
Company, by appointing Mr. Veerkumar C. Shah, Mr. Vishwas V. Mehendale,
Mr. Anil K. Chopra, Mr. Arun R Sathe and Mrs. Madhavi S. Pethe as
Independent Directors of the Company, had complied with the requirement
of having at least one- third of the total number of Directors as
Independent Directors and one lady director on the Board of the
Company.
In accordance with the provisions of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. Hitesh M. Shah, Executive
Director of the Company, retire by rotation at the ensuing Annual
General Meeting and being eligible has offered himself for
re-appointment.
The Board recommends re-appointment of Mr. Hitesh Shah. Brief resume of
the Director proposed to be re-appointed, nature of his expertise in
specific functional areas and names of companies in which he hold
Directorships and Membership/ Chairmanship of Board Committees, as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges are provided in the Notice forming part of this Annual
Report.
Pursuant to the provisions of Section 203 of the Companies Act, 2013
and Rule 8 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 Company have the following whole-time Key
Managerial Personnel (KMPs):
1. Mr. Sumit Shah - Managing Director
2. Mr. G. M. Walavalkar - Company Secretary
3. Mr. Dilip Joshi - Chief Financial Officer
Declaration by Independent Director:
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed under both sub-section (6) of Section 149 of
the Companies Act, 2013 and Clause 49 of the Listing Agreement with the
Stock Exchanges.
Nomination and Remuneration Policy
The policy on nomination and remuneration of Directors, Key Managerial
Personnel and Senior Management has been formulated by the Nomination
and Remuneration Committee and approved by the Board of Directors of
the Company, in compliance with Section 178 of the Companies Act, 2013
read with the applicable rules thereto and Clause 49 of the Listing
Agreement.
This policy lays down the criteria for determining qualifications,
positive attributes and independence of directors and evaluation of
Independent Director and the Board. This policy also includes the
Policy on Board diversity. The said Nomination and Remuneration policy
is posted on the website of the Company www.renjewellery.com
Annual Evaluation of Independent Directors and Board
Pursuant to the provision of Section 134(3) (p) read with Rule 8(4) of
Companies (Accounts) Rules, 2014 and Clause 49 of the Listing
Agreementthe Nomination and Remuneration Committee has devised criteria
for performance evaluation of Independent Directors, Board, Committees
and other individual Directors which include criteria for performance
evaluation of the Non-Executive Directors and Executive Directors.
The Independent Directors and Non-independent Directors at their
respective meetings evaluated performance of fellow Directors based on
factors like leadership quality, attitude, initiatives and
responsibility undertaken, decision making, commitment and achievements
during the financial year.
Meeting of Independent Directors
In accordance with the clause VII of Schedule IV of the Companies Act
2013 and Clause 49 (ll)(B) (6) of the Listing Agreement, a separate
meeting of Independent Directors was held on July 17, 2015 without the
attendance of Non-independent Directors and members of the management.
At this meeting the Independent Directors reviewed the performance of
Non-independent Directors including Executive Chairman and Managing
Director and the Board as a whole.
Familiarisation Program for Independent Directors
The Company has formulated Familiarisation Program to familiarise the
Independent Directors with the Company and its business. The details of
the program and related matters are posted on the website of the
Company www, re n j ewe 11 e ry. co m
Disclosure of Pecuniary Relationship
There was no pecuniary relationship or transactions of the
Non-Executive Directors vis-a-vis the Company during the year. Also, no
payment, except sitting fees, was made to any of the Non-Executive
Directors of the Company. No convertible instruments are held by any of
the Non-Executive Directors.
Directors' Responsibility Statement
As required under provisions of Section 134 (5) of the Companies Act,
2013 the Directors hereby state that:
a) in the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Companies Act, 2013, have been
followed and there are no material departures from the same;
b) selected accounting policies were applied 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 as at March
31, 2015 and of the profit of the Company for the year ended on that
date;
c) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities to the best of
the Directors' knowledge and ability;
d) the annual accounts have been prepared on a 'going concern' basis;
e) internal financial controls to be followed by the Company have been
laid down and that such internal financial controls are adequate and
are operating effectively; and
f) proper systems have been devised to ensure compliance with the
provisions of all applicable laws and that such systems are adequate
and operating effectively.
Auditors
M/s. J. K. Shah & Co., Chartered Accountants, the present Statutory
Auditors of the Company, hold office till the conclusion of the ensuing
Annual General Meeting and are eligible for re-appointment.
The Board, at its meeting held on July 31, 2015, on recommendation of
Audit Committee, decided to recommend their re-appointment at the
ensuing Annual General Meeting till the conclusion of the next Annual
General Meeting and to fix their remuneration. The Company has received
a letter from M/s. J. K. Shah & Co., Chartered Accountants expressing
their willingness for appointment as Statutory Auditors and to the
effect that their re- appointment, if made, would be within the
prescribed limits under Section 141(3) (g) of the Companies Act, 2013
and that they are not disqualified for re-appointment.
Auditors' Report
The Notes on financial statement referred to in the Auditors' Report
are self-explanatory and do not call for any further comments by the
Board. There is no qualification/reservation/adverse remark/disclaimer
made in the Auditors' Report for the financial year 2014-15.
Internal Auditors
In accordance with provisions of Sections 138 of the Companies Act,
2013 and pursuant to the recommendation of the Audit Committee, M/s.
Jayesh Dadia & Associates, Chartered Accountants, Mumbai have been
appointed as Internal Auditors of the Company for conducting Internal
Audit of the Company for the Financial Year 2014-15.
The Internal Auditors independently evaluate the internal controls,
adherence to and compliance with the procedures, guidelines and
statutory requirements. The Audit Committee of Board of Directors
periodically reviews the reports of the internal auditors and
corrective actions taken by the Management with regard thereto.
Internal Financial Controls
The Company has in place adequate internal financial controls with
reference to financial statements. During the year under review, such
controls were tested and no reportable material weaknesses in the
design or operation were observed.
Secretarial Auditor
In accordance with provisions of Sections 204 of the Companies Act,
2013, the Board has appointed M/s V. V. Chakradeo & Co., Practicing
Company Secretary, Mumbai, as Secretarial Auditors of the Company to
conduct Secretarial Audit for the financial year 2014-15. The
Secretarial Audit Report for the financial year ended March 31, 2015 is
enclosed herewith as Annexure - I forming part of this Director's
Report. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark.
Deposits
There was no deposit accepted by the Company within the meaning of
Section 58A of the Companies Act, 1956 and Rules made there under.
During the financial year under review, the Company has neither invited
nor accepted any deposit under Section 73 of the Companies Act, 2013
and the rules made there under and therefore, no amount of principal or
interest was outstanding as of the date of the Balance Sheet.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
Following is the information required under Section 134 (3) (m) of the
Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 for the year ended March 31, 2015
a) Conservation of Energy:
The Company continued energy conservation efforts during the year. It
has closely monitored power consumption and running hours on day to day
basis, thus resulting in optimum utilization of energy. The office and
production areas are fitted with energy saving devices to conserve
energy in the long run.
(i) the steps taken or
impact on conservation
of energy LED lights installed in place of CFLs which are
more energy efficient with minimum maintenance
and long life. Further, offices have been
designed to maximize the use of ambient
lighting while conserving the
air conditioning. The expense on power
in relation to income is nominal
and under control. This step has
helped reducing energy cost by 10%.
(ii) the steps taken by
the Company for
utilising alternate
sources of energy Solar Panels installed at the Unit I of the
Company as alternate source of energy.
(iii) the capital
investment on energy
conservation
equipments Corpus for installing Solar panels is
Rs. 8,06,900/-
b) Technology Absorption:
(i) the efforts made
towards technology
absorption The Company continuously monitors and keep
track of technological upgradation in the
field of Jewellery manufacturing and the
same are reviewed and considered for
implementation. Your Company continued its
focus on quality up-gradation and
product enhancements.
(ii) the benefits
derived like product
improvement, cost
reduction, product
development or import
substitution a. Enhanced productivity & reduction in
production time
b. Total traceability of each piece
during entire manufacturing
process through customized software
c. Reduction in re-work & rejection in
manufacturing.
d. Enhancement of product spectrum
e. Improvement in quality of existing products
(iii) in case of
imported technology
(imported during the
last three years
reckoned from the
beginning of FY):
(a) the details of
technology imported;
(b) the year of
import;
(c) whether technology
been fully absorbed;
(d) if not fully
absorbed, areas
where absorption
has not taken place &
reasons thereof; and
(iv) the expenditure
incurred on Research
and Development As per the established Accounting Policy
expenditure incurred on Research &
Development remains merged with the
respective heads.
Contracts and Arrangements with Related Parties
All contracts/arrangements/transactions entered by the Company during
the financial year with related parties were in the ordinary course of
business and on an arm's length basis.
During the year, the Company had not entered into any
contract/arrangement/transaction with related parties which could be
considered material in accordance with the policy of the Company on
materiality of related party transactions.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board is posed on
the Company's website www.renjewellery.com
Your Directors draw attention of the members to the related party
disclosures sets out in the financial statements of the Company.
Corporate Social Responsibility (CSR)
The Company has established the Corporate Social Responsibility
Committee (CSR Committee) which has formulated and recommended to the
Board, a Corporate Social Responsibility Policy (CSR Policy) indicating
the activities to be undertaken by the Company, which has been approved
by the Board. The said CSR Policy is posed on the Company's website
www.renjewellery.com
The Company has identified four focus areas of engagement which are as
under:
Medical: Affordable solutions for healthcare through improved access
and health awareness Education: Access to quality education, training
and skill enhancement Humanitarian: Creating sustainable livelihood,
addressing poverty, hunger and malnutrition.
Environmental, Animal Welfare, Cultural and Religious: ensuring
environmental sustainability, ecological balance, animal welfare,
conservation of natural resources and protection of national heritage,
art, culture and religion.
As required under Section 135 of the Companies Act, 2013 read with Rule
8 of the Company (Corporate Social Responsibility Policy) Rules, 2014,
the Annual Report on CSR activities is enclosed herewith as Annexure -
II forming part of this Director's Report.
Risk Management
The Board of Directors has adopted Risk Management Policy for the
Company which provides for identification, assessment and control of
risks which in the opinion of the Board may threaten the existence of
the Company.
The Management identifies and controls risks through a properly defined
framework in terms of the aforesaid policy.
Your Directors have constituted a Risk Management Committee which has
been entrusted with the responsibility to assist the Board. The
Committee manages, monitors and reports on the principal risks and
uncertainties that can impact its ability to achieve its strategic
objectives.
The primary responsibilities of this committee are to:
- Discuss with senior management, the Company's Enterprise Risk
Management (ERM) and provide oversight as may be needed;
- Ensure it is apprised of the most significant risks along with the
action management is taking and how it is ensuring effective ERM;
- Reviewing risk disclosure statements in any public documents or
disclosures.
The Audit Committee and the Board periodically discuss the significant
business risks identified by the Risk Management Committee and review
the measures taken for their mitigation.
Other Disclosures:
CSR Committee
The CSR Committee comprises Mr. Niranjan A. Shah (Chairman), Mr. Hitesh
M. Shah and Mr. Anil K. Chopra, as other members.
Audit Committee
The Audit Committee comprises Independent Directors namely Mr.
Veekkumar C. Shah (Chairman), Mr. Arun R Sathe and Mr. Vishwas V.
Mehendale, as other members.
All the recommendations made by the Audit Committee were accepted by
the Board.
Meetings of the Board
Five meetings of the Board of Directors were held during the financial
year under review. For further details, please refer report on
Corporate Governance enclosed in this Annual Report.
Particulars of Loans given, Investments made, Guarantees given and
Securities provided
Particulars of loans given, investments made, guarantees given and
securities provided along with the purpose for which the loan or
guarantee or security is proposed to be utilized by the recipient, as
required under Section 186 of the Companies Act, 2013 are provided in
the standalone financial statement (Please refer to Note 40 to the
Standalone Financial Statement).
Particulars of Employees
The disclosure pursuant to Section 197(12) read with Rule 5(1)(2) of
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, is enclosed herewith as Annexure - III forming part of this
Director's Report.
Extract of Annual Return
An extract of Annual Return in Form MGT-9 as provided under sub-section
(3) of Section 92 of the Companies Act, 2013 read with and Rule 12(1)
of the Companies (Management and Administration) Rules, 2014, is
enclosed herewith as Annexure - IV forming part of this Director's
Report.
Transfer of Unclaimed IPO Refund/Dividend to Investor Education and
Protection Fund
In terms of Section 125 of the Companies Act, 2013, any unclaimed or
unpaid Dividend relating to the financial year 2007-08 is due for
remittance on October 5, 2015 to the Investor Education and Protection
Fund (IEPF) established by the Central Government. For the unclaimed
dividend relating to other financial years and the respective IEPF
Transfer due dates, please refer the statement of IEPF transfer
provided in Report on Corporate Governance.
During the financial year under review, the Company has transferred
unclaimed IPO refund money amounting to Rs. 54,000/-, to the IEPF
Details of Significant and Material orders passed by the Regulators or
Courts
During the financial year under review, no order had been passed by the
regulators/courts or tribunals which have an effect on the going
concern status of the Company and its operations.
Cautionary Statement
Statements in this Directors Report and Management Discussion &
Analysis describing the Company's 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 due to
risk of uncertainties associated with our expectations with respect to,
but not limited to, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business, technological changes, exposure to market
risks, general economic and political conditions in India and which
have an impact on our business activities or investments, the monetary
and fiscal policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, the performance
of the financial markets in India and globally and raw material
availability and prices, demand & pricing in the Company's principal
markets, and other incidental factors.
Acknowledgements
Your Directors take this opportunity to thank the Company's customers,
members, vendors and Bankers for their continued support during the
year. Your Directors also wish to thank the Government of India and
its various agencies, the Santacruz Electronics Export Processing Zone
(SEEPZ), the Customs and Excise department, the Reserve Bank of India,
the State Governments of Maharashtra, and other local Government Bodies
for their support and look forward to their continued support in the
future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Sumit Shah Hitesh Shah
Managing Director Executive Director
Mumbai, July 31, 2015
Mar 31, 2014
Dear Members,
The Directors take great pleasure in presenting the 25th report on the
business and operations of your Company along with the Annual Report
and Audited Financial Statements for the Financial Year 2013-14.
Financial Highlights
The Company earned a Profit Before Tax (PBT) of Rs. 328 million, as
compared to PBT of Rs. 196 million in the previous year.
Highlights of the financial performance (Standalone) are as follows:
(Rs. in million)
F.Y.2013-14 F.Y. 2012-13
Sales 9823 7190
Gross Profit 693 545
PBID 478 361
Less: Interest 81 96
Less: Depreciation 69 68
PBT 328 196
Provision for Tax 57 62
PAT 271 134
Add: Balance brought
forward from PY 2048 1941
Profit available for
appropriation 2319 2073
Appropriations:
Transfer to Reserve Fund
General Reserve 7 3
Dividend on Equity Shares 19 19
Corporate Dividend Tax 3 3
Balance carried forward 2290 2048
The consolidated revenue from operations of the Company for the year
ended March 31, 2014 was Rs. 12221.60 million (RY Rs. 9519.27 million), an
increase of 28.38% on a year-on-year basis.
An earnings before interest, tax, depreciation and amortization
(EBITDA) was Rs. 620.93 million (RY Rs. 462.61 million) an increase of
34.22% on a year-on-year basis. Profit after tax (PAT) was Rs. 294.83
million (RY Rs. 147.70 million) an increase of 99.61% on a year-on-year
basis.
A detailed analysis of the financials is given in the Management''s
Discussion and Analysis Report that forms part of this Annual Report.
Dividend
The Directors recommend a dividend of 10% i.e. Rs. 1/- per share (last
year Rs. 1/- per equity share), subject to approval of the shareholders
at the ensuing 25th Annual General Meeting. The total outgo on account
of dividend amounts to Rs. 19.08 million.
The dividend, if declared at the meeting, shall be paid within the
stipulated period, to those members of the Company whose names appear
on the Register of Members of the Company as on September 12, 2014. In
respect of shares held in Electronic form, the dividend will be paid to
the beneficial owners as per details furnished by the Depositories for
this purpose at the close of business hours on Septembers, 2014.
Subsidiaries
As on signing date of this report your Company had following direct and
indirect subsidiary companies/LLP:
Direct Subsidiary Companies:
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited, India
4. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh Indirect
(Step-down) Subsidiary Companies:
1. House Full International Ltd., India (Subsidiary of N. Kumar
Diamond Exports Limited)
2. House Full Supply Chain Management Ltd., India (Subsidiary of House
Full International Ltd.) Limited Liability Partnership:
1. Aurelle Jewellery LLP India
Financial statements/reports of the subsidiaries:
The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated February 8, 2011 and February 21, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the said circulars. The Company has complied
with the conditions stipulated in these circulars and hence is entitled
to the exemption from attaching the Directors'' Report, Balance Sheet
and Profit and Loss Account of its subsidiaries to the Annual Report
2013-14 of the Company.
Accordingly, the financial statements of the subsidiaries of the
Company are not attached to the Annual Report of the Company. The
Company undertakes that the financial statements of the subsidiary
companies for the year ended March 31, 2014 will be made available to
the members on request at the Registered Office of the Company and the
same will be kept open for inspection by any member during the office
hours of the Company.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements attached with the Annual Report
2013-14 of the Company.
The Employee Stock Purchase Scheme
Your Company, through RJL Employee Welfare Trust (ESPS Trust), has
offered the ESPS shares to the recommended employees under the Tranch -
I and Tranch - II of RJL Employees'' Stock Purchase Scheme - 2008 (RJL
ESPS - 2008).
Following is the status of the RJL ESPS - 2008 as on August 07, 2014:
The Company has not issued shares equal to or exceeding 1% of the
issued capital to any of the identified employee during the financial
year under consideration.
The Company had opted for trust route for offering ESPS and 720000
shares were issued to the Trust in FY 2008-09 for onward offering to
the recommended employees. Hence, basic and Diluted Earning Per Share
(EPS) isRs. 14.21.
Awards/Recognition
Your Company has always strived for the best quality and designs and
has been consistently receiving recognition by various Trade
Organizations and Councils, for its'' performance and achievements.
Following are some of the awards/recognition received by the Company in
the past:
- SEEPZ-SEZ Star 2000-2001 Award
- Wal-Mart''s ''International Supplier of the Year'' Award
- GJEPC Award for being the largest exporter of studded precious metal
Jewellery in 2008
- Emerging India Awards 2009
- GJEPC Award for topping the export performance under the category
"Studded Precious Metal Jewellery Exports from EPZ/EOU Complexes" in
2011
- GJEPC Award for outstanding Export Performance under the category
"Studded Precious Metal Jewellery Exports", in 2012
Corporate Governance
The Company has taken appropriate steps and measures to comply with all
the applicable provisions of Clause 49 and Section 177 of the Companies
Act, 2013. A separate report on Corporate Governance, along with a
certificate of Practicing Company Secretary of the Company, is annexed
herewith. A certificate from the Managing Director and CFO of the
Company confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2014 was placed before the
Board of Directors and the Board has noted the same. A list of the
committees of the Board and names of their members and the scope of
each of these committees and other related information is detailed in
the enclosed Corporate Governance Report.
Cash Flow Statement
In conformity with the provisions of Clause 32 of the listing agreement
with Stock Exchanges, the cash flow statement for the year ended March
31, 2014 is annexed hereto.
Consolidated Accounts
In accordance with the requirements of Accounting Standards AS-21
prescribed by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its subsidiary is annexed to
this Report.
Listing
At present 19,079,440 Equity Shares of the Company are listed on the
BSE and NSE. The Company has paid the applicable listing fees to these
Stock Exchanges for the financial year 2014-15. The Company''s shares
are tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. & National Securities Depository Ltd.
In view of the numerous advantages offered by the depository system,
members are requested to avail of the facility of dematerialization of
the Company''s shares on either of the Depositories as aforesaid.
Your Company has fully complied with the SEBI Circular -
Cir/ISD/3/2011, dated June 17, 2011 by achieving 100% of promoter''s and
promoter group''s shareholding in dematerialized form. Therefore, the
securities of companies are traded in the normal segment of the
Exchanges.
Human Resources
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a scalable requirement and human resource
management process, which enables it to attract and retain employees of
the high caliber. The Company continuously invests in training staff in
the latest technology.
Directors
As per the requirement of second proviso to Section 149 (1) of
Companies Act, 2013 (the Act) read with Rule 3 of Companies
(Appointment and Qualification of Directors) Rules, 2014 and amended
Clause 49 of the Listing Agreement and pursuant to the provisions of
Section 161 of the Companies Act, 2013 and the Articles of Association
of the Company, the Board of Directors at their meeting held on August
7,2014, on the recommendation made by the Remuneration and Nomination
Committee at its meeting held on the same day, has appointed Dr.
Madhavi S. Pethe, as an Additional Director designated as an
Independent non-executive Woman Director of the Company, who shall hold
office up to the date of this Annual General Meeting.
The Company had, pursuant to the provisions of clause 49 of the Listing
Agreements entered into with Stock Exchanges, appointed Mr. Veerkumar
C. Shah, Mr. Vishwas V. Mehendale, Mr. Anil K. Chopra and Mr. Arun R
Sathe, as Independent Directors of the Company.
As per Section 149 of the Companies Act, 2013 (Act), which came into
effect from April 1, 2014, every listed public company is required to
have at least one-third of the total number of Directors as Independent
Directors.
In accordance with the provisions of section 149 of the Act, these
Directors are being appointed as Independent Directors to hold office
as per their tenure of appointment mentioned in the Notice of the
forthcoming Annual General Meeting (AGM) of the Company.
Mr. Niranjan A. Shah, Executive Chairman, retires by rotation at the
ensuing Annual General Meeting, and being eligible, offer himself for
re-appointment.
The Board recommends appointment(s)/ re-appointment of these
Director(s).
Brief resume of the Directors proposed to be appointed/re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold Directorships and Membership/ Chairmanship
of Board Committees, as stipulated underthe Listing Agreement with the
Stock Exchanges are provided in the Notice forming part of this Annual
Report.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
Key Managerial Personnel
Pursuant to the provisions of Section 203 of the Companies Act, 2013
and Rule 8 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 the Board of Directors at their meeting held on
May 23, 2014 has appointed following whole-time Key Managerial
Personnel:
1. Mr. Sumit Shah - Managing Director
2. Mr. Ghanshyam Walavalkar - Company Secretary
3. Mr. Dilip Joshi - Chief Financial Officer
Auditors
M/s J. K. Shah & Co., Chartered Accountants, the present Statutory
Auditors of the Company, retire at the ensuing Annual General Meeting
and have confirmed their eligibility and willingness to accept office,
if re-appointed. The Board, at its meeting held on August 7, 2014, on
recommendation of audit committee, decided to recommend their
re-appointment at the Annual General Meeting till the conclusion of the
next Annual General Meeting and to fix their remuneration.
The Company has received a letter from M/s. J. K. Shah & Co., Chartered
Accountants expressing their willingness for appointment as Statutory
Auditors and to the effect that their re-appointment, if made, would be
within the prescribed limits under Section 141(3)(g) of the Companies
Act, 2013 and that they are not disqualified for re-appointment.
Fixed Deposits
During the financial year 2013-14, the Company has not accepted any
fixed deposit within the meaning of Section 58A of the Companies Act,
1956, and as such, no amount of principal or interest was outstanding
as of the date of the Balance Sheet.
Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo
The particulars as prescribed under sub-section (1)(e) of Section 217
of the Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988, the
relevant data pertaining to conservation of energy, technology
absorption and foreign exchange earnings and outgo are furnished
hereunder:
a. Conservation of energy
The operations of the Company are not energy- intensive. The Company,
however, takes measures to reduce and optimize energy consumption by
using energy efficient computers, CFL bulbs and ballast-based lighting.
Further, offices have been designed to maximize the use of ambient
lighting while conserving the air conditioning. The expense on power
in relation to income is nominal and under control.
b. Technology absorption
Research & Development (R & D): Since businesses and technologies are
changing constantly, investment in research and development activities
is of paramount importance. Your Company lays a great emphasis on
knowledge management and has an institutionalized process for
absorption of new technologies. Your Company continued its focus on
quality up-gradation product enhancements.
Benefits derived as a result of the above R&D for better productivity
and cost reduction:
a. Enhanced productivity and reduction in production lead time
b. Total traceability of each piece during entire manufacturing
process through customized software
c. Reduction in re-work and rejection in the manufacturing process.
d. Enhancement of product spectrum
e. Improvement in quality of existing products.
Future plan of action: Research and Development has been considered as
a continuous process. Steps have been taken for further development of
new products of superior quality, up-gradation of existing product
designs to improve the quality and reduction in rejections.
Expenditure on R & D: As per the established Accounting Policy
Expenditure incurred on Research & Development remains merged with the
respective heads.
Technology Absorption, Adaptation & Innovation: The Company
continuously monitors and keep track of technological up- gradation
taking place in other countries in the field of Jewellery manufacturing
and the same are reviewed and considered for implementation.
Directors'' Responsibility Statement
As required under Section 217 of the Companies Act, 1956 the Directors
hereby confirm that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. The Directors have 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 of
the Company for that period;
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv. The Directors have prepared the annual accounts on a ''going
concern'' basis.
Employee Particulars
The Company does not have any employee whose particulars are required
to be disclosed pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Amendment Rules,
2011, and under Section 217 (1)(e) of the said Act, read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
Cautionary Statement
Statements in this Directors Report and Management Discussion &
Analysis describing the Company''s 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 due to
risk of uncertainties associated with our expectations with respect to,
but not limited to, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business, technological changes, exposure to market
risks, general economic and political conditions in India and which
have an impact on our business activities or investments, the monetary
and fiscal policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, the performance
of the financial markets in India and globally and raw material
availability and prices, demand & pricing in the Company''s principal
markets, and other incidental factors.
Acknowledgements
Your Directors take this opportunity to thank the Company''s customers,
members, vendors and bankers for their continued support during the
year. Your Directors also wish to thank the Government of India and
its various agencies, the Santacruz Electronics Export Processing Zone,
the Customs and Excise department, the Reserve Bank of India, the State
Governments of Maharashtra, and other local Government Bodies for their
support, and look forward to their continued support in the future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Sumit Shah Hitesh Shah
Managing Director Executive Director
Mumbai, August 07, 2014
Mar 31, 2013
Dear Members,
The Directors take great pleasure in presenting the 24th report on the
business and operations of your Company along with the Annual Report
and Audited Financial Statements for the Financial Year 2012-13.
Financial highlights
Your Company earned a Profit Before Tax (PBT) of Rs. 196/- millions, as
compared to PBT of Rs. 446/- millions in the previous year.
Highlights of the financial performance are as follows:
(Rs. in millions)
F.Y.2012-13 F.Y. 2011-12
Sales 7190.07 7094.25
Gross Profit 545 752
PBID 361 611
Less: Interest 96 102
Less: Depreciation 68 62
PBT 196 446
Provision for Tax 62 34
PAT 134 412
Add: Balance brought
forward from PY 1941 1583
Profit available for
appropriation 2074 1995
Appropriations:
Transfer to Reserve Fund
General Reserve 3 20
Dividend on Equity Shares 19 28
Corporate Dividend Tax 3 4
Balance carried forward 2048 1941
A detailed analysis of the financials is given in the Management''s
Discussion and Analysis report that forms part of this Annual Report.
Dividend
The Directors recommend a dividend of 10% i.e. Rs. 1/- per share, subject
to approval of the shareholders at the ensuing 24th Annual General
Meeting. The total outgo on account of dividend and tax thereon amounts
to Rs. 22.32 Millions.
The dividend, if declared at the meeting, shall be paid within the
stipulated period, to those members of the Company whose names appear
on the Register of Members of the Company as on August 30, 2013. In
respect of shares held in Electronic form, the dividend will be paid to
the beneficial owners as per details furnished by the Depositories for
this purpose at the close of business hours on August 21, 2013.
Subsidiaries
During the financial year under review, the one of the wholly owned
subsidiaries of your Company i.e. Caro Fine Jewellery Pvt. Ltd. was
merged with the Company. The scheme of amalgamation received the High
Court sanction on April 12, 2013. The Scheme of Amalgamation has
become effective on May 14, 2013 on filing the same with Registrar of
Companies, Mumbai. There would be no issue of shares as Caro Fine
Jewellery Private Limited was a wholly owned subsidiary of Renaissance
Jewellery Limited.
After closure of the financial Year under review, your Company has
disinvested from M/s. Renaissance Adrienne LLC, California, its step
down subsidiary i.e. subsidiary of Renaissance Jewelry N.Y Inc.
Your Company has ventured into a potent business of selling high-end
Jewellery to an elite class in the domestic market, through a Limited
Liability Partnership (LLP), M/s. Aurelle Jewellery LLP incorporated
under the Limited Liability Partnership Act, 2008 by entering into LLP
Agreement with Mr. Vikash Kanoi.
Also the Renaissance Jewellery Bangladesh Pvt. Ltd., a wholly owned
subsidiary in Bangladesh has commenced its commercial production from
April 1, 2013.
Hence as on signing date of this report, your Company had following
direct and indirect subsidiary companies/LLP:
Direct Subsidiary Companies:
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited, India
4. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh
Indirect (Step-down) Subsidiary Companies
1. House Full International Ltd. India (Subsidiary of N. Kumar Diamond
Exports Limited)
2. House Full Supply Chain Management Ltd., India (Subsidiary of House
Full International Ltd.)
Limited Liability Partnership:
1. Aurelle Jewellery LLR India
Financial statements/reports of the subsidiaries
The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated February 8, 2011 and February 21, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the said circulars. The Company has complied
with the conditions stipulated in these circulars and hence is entitled
to the exemption from attaching the Directors'' Report, Balance Sheet
and Profit and Loss Account of its subsidiaries to the Annual Report
2012-13 of the Company.
Accordingly, the financial statements of the subsidiaries of the
Company are not attached to the Annual Report of the Company. The
Company undertakes that the financial statements of the subsidiary
companies for the year ended March 31,2013 will be made available to
the members on request at the Registered Office of the Company and the
same will be kept open for inspection by any member during the office
hours of the Company.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements attached with the Annual Report
2012-13 of the Company.
The Employee Stock Purchase Scheme
Your Company, through RJL Employee Welfare Trust (ESPS Trust), has
offered the ESPS shares to the recommended employees under the Tranch -
I and Tranch - II of RJL Employees'' Stock Purchase Scheme - 2008 (RJL
ESPS - 2008).
The Company has not issued shares equal to or exceeding 1% of the
issued capital to any of the identified employee during the financial
year under consideration.
The Company has opted for trust route for offering ESPS and 720000
shares were issued to the Trust in FY 2008-09 for onward offering to
the recommended employees. Hence, basic and Diluted Earning Per Share
(EPS) is Rs. 7.01.
AWARDS/RECOGNITION
Your Company has consistently received wide recognition for Quality,
Designs, leadership and achievements.
This year also, your Company has been honored by Gems and Jewellery
Export Promotion Council of India (GJEPC) with the 39th Annual Award
for Outstanding Export Performance under the category "Studded Precious
Metal Jewellery Exports".
Following are some of the awards/recognition received by the Company in
the past:
- SEEPZ-SEZ Star 2000-2001 Award
- Wal-Mart''s ''International Supplier of the Year'' Award
- GJEPC Award for being the largest exporter of studded precious metal
Jewellery in 2008
- Emerging India Awards 2009
- GJEPC Award for topping the export performance under the category
"Studded Precious Metal Jewellery Exports from EPZ/EOU Complexes" in
2011
CORPORATE GOVERNANCE
The Company has taken appropriate steps and measures to comply with all
the applicable provisions of Clause 49 and Section 292A of the
Companies Act, 1956. A separate report on Corporate Governance, along
with a certificate of Statutory Auditors of the Company, is annexed
herewith. A certificate from the Managing Director and CFO of the
Company confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2013 was placed before the
Board of Directors and the Board has noted the same. A list of the
committees of the Board and names of their members and the scope of
each of these committees and other related information is detailed in
the enclosed Corporate Governance Report.
CASH FLOW STATEMENT
In conformity with the provisions of Clause 32 of the listing agreement
with Stock Exchanges, the cash flow statement for the year ended March
31, 2013 is annexed hereto.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standards AS-21
prescribed by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its subsidiary is annexed to
this Report.
LISTING
At present 19,079,440 Equity Shares of the Company are listed on the
BSE and NSE. The Company has paid the applicable listing fees to these
Stock Exchanges for the financial year 2013-14. The Company''s shares
are tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. & National Securities Depository Ltd.
In view of the numerous advantages offered by the depository system,
members are requested to avail of the facility of dematerialization of
the Company''s shares on either of the Depositories as aforesaid. Your
Company has fully complied with the SEBI Circular - Cir/ISD/3/2011,
dated June 17, 2011 by achieving 100% of promoter''s and promoter
group''s shareholding in dematerialized form. Therefore, the securities
of companies are traded in the normal segment of the Exchanges.
HUMAN RESOURCES
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a scalable requirement and human resource
management process, which enables it to attract and retain employees of
the high caliber. The Company continuously invests in training staff in
the latest technology.
DIRECTORS
Mr. Anil K. Chopra and Mr. Vishwas V. Mehendale retire by rotation at
the ensuing Annual General Meeting, and being eligible, offer
themselves for re-appointment. The Board recommends their
re-appointment.
Brief resume of the Directors proposed to be re- appointed, nature of
their expertise in specific functional areas and names of companies in
which they hold Directorships and Membership/ Chairmanship of Board
Committees, as stipulated under the Listing Agreement with the Stock
Exchanges are provided in the Notice forming part of this Annual
Report.
AUDITORS
M/s. J. K. Shah & Co., Chartered Accountants, the present Statutory
Auditors of the Company, retire at the ensuing Annual General Meeting
and have confirmed their eligibility and willingness to accept office,
if re-appointed. The Board recommends their re-appointment at the
Annual General Meeting till the conclusion of the next Annual General
Meeting and to fix their remuneration.
The Company has received a letter from M/s. J. K. Shah & Co., Chartered
Accountants under the provisions of Section 224(1 B) of the Companies
Act, 1956 expressing their willingness for appointment as Statutory
Auditors, if made by the members will be within the statutory limits
prescribed.
FIXED DEPOSITS
During the financial year 2012-13, the Company has not accepted any
fixed deposit within the meaning of Section 58A of the Companies Act,
1956, and as such, no amount of principal or interest was outstanding
as of the date of the Balance Sheet.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under sub-section (1)(e) of Section 217
of the Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988, the
relevant data pertaining to conservation of energy, technology
absorption and foreign exchange earnings and outgo are furnished
hereunder:
(a) Conservation of energy
The operations of the Company are not energy- intensive. The Company,
however, takes measures to reduce and optimize energy consumption by
using energy efficient computers, CFL bulbs and ballast-based lighting.
Further, offices have been designed to maximize the use of ambient
lighting while conserving the air conditioning. The expense on power
in relation to income is nominal and under control.
(b) Technology absorption
Research & Development (R&D): Since businesses and technologies are
changing constantly, investment in research and development activities
is of paramount importance. Your Company lays a great emphasis on
knowledge management and has an institutionalized process for
absorption of new technologies. Your Company continued its focus on
quality upgradation product enhancements.
Benefits derived as a result of the above R&D for better productivity
and cost reduction:
(a) Enhanced productivity and reduction in production lead time.
(b) Total traceability of each piece during entire manufacturing
process through customized software.
(c) Reduction in re-work and rejection in the manufacturing process.
(d) Enhancement of product spectrum.
(e) Improvement in quality of existing products.
Future plan of action: Research and Development has been considered as
a continuous process. Steps have been taken for further development of
new products of superior quality, upgradation of existing product
designs to improve the quality and reduction in rejections.
Expenditure on R & D: As per the established Accounting Policy
Expenditure incurred on Research & Development remains merged with the
respective heads.
Technology Absorption, Adaption & Innovation:
The Company continuously monitors and keep track of technological
upgradation taking place in other countries in the field of Jewellery
manufacturing and the same are reviewed and considered for
implementation.
DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217 of the Companies Act, the Directors
hereby confirm that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. The Directors have 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 of
the Company for that period;
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv. The Directors have prepared the annual accounts on a ''going
concern'' basis.
EMPLOYEE PARTICULARS
The Company does not have any employee whose particulars are required
to be disclosed pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Amendment Rules,
2011, and under Section 217(1)(e) of the said Act, read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
CAUTIONARY STATEMENT
Statements in this Directors Report and Management Discussion &
Analysis describing the Company''s 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 due to
risk of uncertainties associated with our expectations with respect to,
but not limited to, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business, technological changes, exposure to market
risks, general economic and political conditions in India and which
have an impact on our business activities or investments, the monetary
and fiscal policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, the performance
of the financial markets in India and globally and raw material
availability and prices, demand & pricing in the Company''s principal
markets, and other incidental factors.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to thank the Company''s customers,
members, vendors and bankers for their continued support during the
year. Your Directors also wish to thank the Government of India and
its various agencies, the Santacruz Electronics Export Processing Zone,
the Customs and Excise department, the Reserve Bank of India, the State
Governments of Maharashtra, and other local Government Bodies for their
support, and look forward to their continued support in the future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Sumit N. Shah Hitesh M. Shah
Managing Director Executive Director
Mumbai, July 30, 2013
Mar 31, 2012
The Directors take great pleasure in presenting the 23rd report on the
business and operations of your Company along with the Annual Report
and Audited Financial Statements for the Financial Year 2011-12.
FINANCIAL HIGHLIGHTS
Your Company earned a Profit Before Tax (PBT) of Rs. 447/- millions, a
growth of 29% as compared to PBT of Rs. 345/- millions in the previous
year.
Highlights of the financial performance are as follows:
(Rs. in millions)
F.Y. 2011-12 F.Y. 2010-11
Sales 7,094 6,052
Gross Profit 752 614
PBID 637 496
Less : Interest 128 101
Less : Depreciation 62 50
PBT 447 345
Provision for Tax 34 15
PAT 411 330
Add : Balance brought
forward from PY 1,583 1,323
Profit available for
appropriation 1,993 1,653
Appropriations:
Transfer to Reserve Fund
General Reserve 20 25
Dividend on Equity Shares 28 38
Corporate Dividend Tax 4 6
Balance carried forward 1,941 1,584
A detailed analysis of the financials is given in the Management's
Discussion and Analysis report that forms part of this Annual Report.
DIVIDEND
The Directors recommend a dividend of 15% i.e. Rs. 1.5/- per share,
subject to approval of the shareholders at the ensuing 23rd Annual
General Meeting. The total outgo on account of dividend and tax thereon
amounts to Rs. 33.26 millions.
The dividend, if declared at the meeting, shall be paid within the
stipulated period, to those members of the Company whose names appear
on the Register of Members of the Company as on September 7, 2012. In
respect of shares held in Electronic form, the dividend will be paid to
the beneficial owners as per details furnished by the Depositories for
this purpose at the close of business hours on August 29, 2012.
SUBSIDIARIES
During the financial year under review, your Company has acquired 100%
equity of M/s. Caro Fine Jewellery Pvt. Ltd. and a wholly owned
subsidiary viz. Renaissance Jewellery Bangladesh Pvt. Ltd. was
incorporated in Bangladesh.
During the financial year under review your Company has disinvested
from M/s. Renaissance Realtors Private Limited, its step down
subsidiary i.e. subsidiary of N. Kumar Diamond Exports Limited.
Hence as on March 31, 2012, your Company had following direct and
indirect subsidiary companies:
DIRECT SUBSIDIARY COMPANIES
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited, India
4. Caro Fine Jewellery Pvt. Ltd., India
5. Renaissance Jewellery Bangladesh Pvt. Ltd., Bangladesh
INDIRECT (STEP-DOWN) SUBSIDIARY COMPANIES
1. Renaissance Adrienne LLC, California (Subsidiary of Renaissance
Jewelry N.Y Inc.)
2. HouseFull International Ltd. (Subsidiary of N. Kumar Diamond
Exports Limited)
3. HouseFull Supply Chain Management Limited (Subsidiary of HouseFull
International Ltd.)
FINANCIAL STATEMENTS/REPORTS OF THE SUBSIDIARIES
The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated February 8, 2011 and February 21, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the said circulars. The Company has complied
with the conditions stipulated in these circulars and hence is entitled
to the exemption from attaching the Directors' Report, Balance Sheet
and Profit and Loss Account of its subsidiaries to the Annual Report
2011-12 of the Company.
Accordingly, the financial statements of the subsidiaries of the
Company are not attached to the Annual Report of the Company. The
Company undertakes that the financial statements of the subsidiary
companies for the year ended March 31, 2012 will be made available to
the members on request at the Registered Office/Corporate office of the
Company and the same will be kept open for inspection by any member
during the office hours of the Company.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements attached with the Annual Report
2011-12 of the Company.
THE EMPLOYEE STOCK PURCHASE SCHEME
In accordance with RJL Employees' Stock Purchase Scheme - 2008 (RJL
ESpS-2008) as approved by the members at the 19th Annual General
Meeting, the ESPS Compensation committee at it's meeting held on
January 20, 2011, had considered the onward offering of ESPS shares to
the recommended employees under the Tranch II.
The Company has not issued shares equal to or exceeding 1% of the
issued capital to any of the identified employee during the financial
year under consideration.
The Company has opted for trust route for offering ESPS and 720,000
shares were issued to the Trust in F.Y 2008-09 for onward offering to
the recommended employees. Hence, basic and Diluted Earning Per Share
(EPS) is Rs. 21.58.
AWARDS/RECOGNITION
Your Company has consistently received wide recognition for Quality,
Designs, leadership and achievements.
This year also, your Company has been honored by Gems and Jewellery
Export Promotion Council of India with the award for topping the export
performance under the category "Studded Precious Metal Jewellery
Exports from EPZ/EOU Complexes".
Following are some of the awards/recognition received by the Company in
the past:
- SEEPZ-SEZ Star 2000-2001 Award
- Wal-Mart's 'International Supplier of the Year' Award
- GJEPC Award for being the largest exporter of studded precious metal
Jewellery in 2008
- Emerging India Awards 2009
CORPORATE GOVERNANCE
The Company has taken appropriate steps and measures to comply with all
the applicable provisions of Clause 49 and Section 292A of the
Companies Act,
1956. A separate report on Corporate Governance, along with a
certificate of Practicing Company Secretary, is annexed herewith. A
certificate from the Managing Director and CFO of the Company
confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2012 was placed before the
Board of Directors and the Board has noted the same. A list of the
committees of the Board and names of their members and the scope of
each of these committees and other related information is detailed in
the enclosed Corporate Governance Report.
CASH FLOW STATEMENT
In conformity with the provisions of Clause 32 of the listing agreement
with Stock Exchanges, the cash flow statement for the year ended March
31, 2012 is annexed hereto.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standards AS-21
prescribed by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its subsidiary is annexed to
this Report.
LISTING
At present 19,079,440 Equity Shares of the Company are listed on the
BSE and NSE. The Company has paid the applicable listing fees to these
Stock Exchanges for the financial year 2012-13. The Company's shares
are tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. & National Securities Depository Ltd.
In view of the numerous advantages offered by the depository system,
members are requested to avail of the facility of dematerialization of
the Company's shares on either of the Depositories as aforesaid.
HUMAN RESOURCES
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a scalable requirement and human resource
management process, which enables it to attract and retain employees of
the high caliber. The Company continuously invests in training staff in
the latest technology.
DIRECTORS
Mr. Veerkumar Shah and Mr. Arun Sathe retire by rotation at the ensuing
Annual General Meeting, and being eligible, offer themselves for
re-appointment. The Board recommends their re-appointment.
The Board has approved the re-appointment of Mr. Sumit Shah as Managing
Director of the Company for the further period of five year and the
approval of the members is being sought at this Annual General Meeting.
Brief resume of the Directors proposed to be re-appointed, nature of
their expertise in specific functional areas and names of companies in
which they hold Directorships and Membership/Chairmanship of Board
Committees, as stipulated under the Listing Agreement with the Stock
Exchanges are provided in the Notice forming part of this Annual
Report.
AUDITORS
M/s. S. R. Batliboi & Associates, Chartered Accountants, the statutory
auditors of the Company have expressed their unwillingness for
re-appointment at the ensuing Annual General Meeting. The Audit
Committee members and the Board of Directors have recommended the
appointment of M/s. J. K. Shah & Co., Chartered Accountants as the
Statutory Auditors of the Company to hold office from the conclusion of
this Annual General Meeting till the conclusion of the next Annual
General Meeting and to fix their remuneration.
The Company has received a letter from M/s. J. K. Shah & Co., Chartered
Accountants under the provisions of Section 224(1B) of the Companies
Act, 1956 expressing their willingness for appointment as Statutory
Auditors, if made by the members will be within the statutory limits
prescribed.
AUDITORS OBSERVATIONS
As explained in Note 40 to the financial statements, the Auditors have
observed that the basis of computing cost of loose polished diamonds,
is not in accordance with the method prescribed under Accounting
Standard (AS) - 2 'Valuation of Inventories' impact whereof on the
profit for the year and therefore, they are unable to comment on the
consequent effect thereof on the accompanying financial statements.
Management Perception:
In view of management, considering the nature of variation in the value
of individual diamonds, the differentials in their costs, and numerous
number of assortments and re-assortments to multiple grades, it is not
practicable to maintain grade-wise inventory records and to compute the
cost of loose polished diamonds using either first in first out,
weighted average cost or Specific Cost. Inventory as at the year end is
based on management's best technical estimate of replacement cost of
the respective grade of diamonds.
FIXED DEPOSITS
During the financial year 2011-12, the Company has not accepted any
fixed deposit within the meaning of Section 58A of the Companies Act,
1956, and as such, no amount of principal or interest was outstanding
as of the date of the Balance Sheet.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under sub-section (1)(e) of Section 217
of the Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988, the
relevant data pertaining to conservation of energy, technology
absorption and foreign exchange earnings and outgo are furnished
hereunder:
(a) Conservation of energy
The operations of the Company are not energy- intensive. The Company,
however, takes measures to reduce and optimize energy consumption by
using energy efficient computers, CFL bulbs and ballast-based lighting.
Further, offices have been designed to maximize the use of ambient
lighting while conserving the air conditioning. The expense on power
in relation to income is nominal and under control.
(b) Technology absorption
Research & Development (R & D): Since businesses and technologies are
changing constantly, investment in research and development activities
is of paramount importance. Your Company lays a great emphasis on
knowledge management and has an institutionalized process for
absorption of new technologies. Your Company continued its focus on
quality up-gradation product enhancements.
Benefits derived as a result of the above R & D for better productivity
and cost reduction:
(a) Enhanced productivity and reduction in production lead time.
(b) Total traceability of each piece during entire manufacturing
process through customized software.
(c) Reduction in re-work and rejection in the manufacturing process.
(d) Enhancement of product spectrum.
(e) Improvement in quality of existing products.
Future plan of action: Research and Development has been considered as
a continuous process. Steps have been taken for further development
of new products of superior quality, up-gradation of existing product
designs to improve the quality and reduction in rejections.
Expenditure on R & D: As per the established Accounting Policy
Expenditure incurred on Research & Development remains merged with the
respective heads.
Technology Absorption, Adaption & Innovation:
The Company continuously monitors and keep track of technological
up-gradation taking place in other countries in the field of Jewellery
manufacturing and the same are reviewed and considered for
implementation.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217 of the Companies
Act, the Directors hereby confirm that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. The Directors have 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 of
the Company for that period;
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv. The Directors have prepared the annual accounts on a 'going
concern' basis.
EMPLOYEE PARTICULARS
The Company does not have any employee whose particulars are required
to be disclosed pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Amendment Rules,
2011, and under Section 217(1)(e) of the said Act, read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
CAUTIONARY STATEMENT
Statements in this Directors Report and Management Discussion &
Analysis describing the Company's 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
due to risk of uncertainties associated with our expectations with
respect to, but not limited to, changes in Government regulations, tax
regimes, economic developments within India and the countries in which
the Company conducts business, technological changes, exposure to
market risks, general economic and political conditions in India and
which have an impact on our business activities or investments, the
monetary and fiscal policies of India, inflation, deflation,
unanticipated turbulence in interest rates, foreign exchange rates, the
performance of the financial markets in India and globally and raw
material availability and prices, demand & pricing in the Company's
principal markets, and other incidental factors.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to thank the Company's
customers, members, vendors and bankers for their continued support
during the year. Your Directors also wish to thank the Government of
India and its various agencies, the Santacruz Electronics Export
Processing Zone, the Customs and Excise department, the Reserve Bank of
India, the State Governments of Maharashtra, and other local Government
Bodies for their support, and look forward to their continued support
in the future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Sumit Shah Hitesh Shah
Managing Director Executive Director
Mumbai, July 30, 2012
Mar 31, 2011
Dear Members,
The Directors take great pleasure in presenting the 22nd report on the
business and operations of your Company along with, the Annual Report
and Audited Financial Statements for the Financial Year 2010-11.
FINANCIAL HIGHLIGHTS
Your Company earned a Profit Before Tax (PBT) of Rs. 345 millions, a
growth of 32.69% as compared to PBT of Rs. 260 millions in the previous
year.
Highlights of the financial performance are as follows:
(Rs. in millions)
2010-11 2009-10
Sales 6,051 4,753
Gross Profit 614 477
PBID 496 382
'Less: Interest 101 81
Less: Depreciation 50 41
ÃPBT 345 260
Provision for Tax 15 26
PAT 330 234
Add: Balance brought forward
from PY 1,323 1,151
Profit available for appropriation 1,653 1,385
Appropriations:
Transfer to Reserve Fund
General Reserve 25 18
Dividend on Equity Shares 38 38
Corporate Dividend Tax 6 6
Balance carried forward 1,583 1,323
A detailed analysis of the financials is given in the Management's
Discussion and Analysis report that forms part of this Annual Report.
DIVIDEND
The Directors recommend a dividend of 20% i.e. Rs. II- per share, subject
to approval of the shareholders at the ensuing 22nd Annual General
Meeting. The total outgo on account of dividend and tax thereon amounts
to Rs. 44,643,982/-.
The dividend, if declared at the meeting, shall be paid within the
stipulated period, to those members of the Company whose names appear
on the Register, of Members of the Company as on September 7, 2011. In
respect of shares held in Electronic form, the dividend will be paid to
the beneficial owners as per details furnished by the Depositories for
this purpose at the close of business hours on August 30, 2011.
CONVERTIBLE SHARE WARRANTS
During the financial year under review, your Company has issued
2,000,000 Convertible Share Warrants to the Promoters /promoter group
and strategic investors, on preferential basis after receipt of 25% of
the total consideration @ of Rs. 76.00/- per warrant i.e. Rs. 19/- per
warrant. The said issue of Convertible Share Warrants was made in
accordance with the SEBI (ICDR) Regulations, 2009, after obtaining the
approval of members of the Company vide Postal Ballot Resolution.dated
March 7, 2011.
SUBSIDIARIES
During the financial year under review, your Company has acquired 100%
equity of M/s. N. Kumar Diamond Exports Ltd., a company engaged in the
business of import and export of cut and polished diamond along with
its wholly owned subsidiary House Full International Ltd., the fastest
growing Home retailers in India. As a result of this acquisition, both
N. Kumar Diamond Exports Ltd. and House Full International Limited have
become the wholly owned direct subsidiary and indirect subsidiary
respectively of the Company.
Hence as on March 31, 2011, your Company had following direct and
indirect subsidiary companies:
DIRECT SUBSIDIARY COMPANIES
1. Renaissance Jewelry New York Inc., USA
2. Verigold Jewellery (UK) Ltd., London
3. N. Kumar Diamond Exports Limited
INDIRECT (STEP-DOWN) SUBSIDIARY COMPANIES
1. Renaissance Adrienne LLC, California (Subsidiary of Renaissance
Jewelry N.Y Inc.)
2. House Full International Ltd. (Subsidiary of N. Kumar Diamond
Exports Limited)
3. House Full Supply Chain Management Limited (Subsidiary of House
Full International Ltd.)
4. Renaissance Realtors Private Limited (Subsidiary of N. Kumar
Diamond Exports Limited)
INCORPORATION OF A WHOLLY OWNED SUBSIDIARY IN BANGLADESH
The Company's maiden manufacturing project in Bangladesh was
conceptualized during the financial year under review. A wholly owned
Subsidiary viz., Renaissance Jewellery Bangladesh Pvt. Ltd. was
incorporated on April 13, 2011 to set up the said project.
FINANCIAL STATEMENTS / REPORTS OF THE SUBSIDIARIES
The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated February 8, 2011 and February 21, 2011
respectively has granted a general exemption from compliance with
Section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the said circulars. The Company has complied
with the conditions stipulated in these circulars and hence is entitled
to the exemption from attaching the Directors' Report, Balance Sheet
and Profit and Loss Account of its subsidiaries to the Annual Report
2010-11 of the Company.
Accordingly, the financial statements of the subsidiaries of the
Company are not attached to the Annual Report of the Company. The
Company undertakes that the financial statements of the subsidiary
companies for the year ended March 31, 2011 will be made available to
the members on request at the Registered Office/Corporate Office of the
Company and same will be kept open for inspection by any member during
the office hours of the Company.
Necessary information relating to the subsidiaries has been included in
the Consolidated Financial Statements attached with the Annual Report
2010-11 of the Company.
THE EMPLOYEE STOCK PURCHASE SCHEME
The Company has, in accordance with RJL Employees' Stock Purchase
Scheme - 2008 (ESPS Scheme) as approved by the members at the 19th
Annual General Meeting, the ESPS Compensation committee at its meeting
held on January 20, 2011, considered the onward offering of ESPS shares
to the recommended employees under the Tranch It.
In the Tranch I, the Company had offered 617,500 shares to total 9
employees. 155,000 shares were transferred back to the RJL Employee
Welfare Trust due to non-acceptance/ disqualification of 3 employees.
The Committee after considering the eligibility criteria under the
Scheme offered 257,490 shares under ESPS Tranch II to 72 employees at
the rate of Rs. 10/- per share with premium of Rs. 55/- per share.
The details of the employees to whom the ESPS were offered are attached
to this report as Annexure I.
The Company has not issued shares equal to or exceeding 1% of the
issued capital to any of the identified employee during the financial
year under consideration.
The Company has opted for trust route for offering ESPS and 720,000
shares were issued to the Trust in FY 2008-09 for onward offering to
the recommended employees. Hence, basic and Diluted Earning Per Share
(EPS) is Rs. 17.30.
AWARDS/RECOGNITION
Your Company has consistently received wide recognition for Quality,
Designs, leadership and achievements. Following are some of the
awards/recognition received by the Company in - the past:
> SEEPZ-SEZ Star 2000-2001 Award
> Wal-Mart's 'International Supplier of the Year' Award
> GJEPC Award for being the largest exporter of studded precious metal
Jewellery in 2008
> Emerging India Awards 2009
CORPORATE GOVERNANCE
The Company has taken appropriate steps and measures to comply with all
the applicable provisions of Clause 49 and Section 292A of the
Companies Act, 1956. A separate report on Corporate Governance, along
with a certificate of Statutory Auditors of the Company, is annexed
herewith. A certificate from the Managing Director and CFO of the
Company confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2011 was placed before the
Board of Directors and the Board has noted the same. A list of the
committees of the Board and names of their members and the scope of
each of these committees and other related information is detailed in
the enclosed Corporate Governance Report.
CASH FLOW STATEMENT
In conformity with the provisions of Clause 32 of the listing agreement
with Stock Exchanges, the cash flow statement for the year ended March
31, 2011 is annexed hereto.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standards AS-21
prescribed by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its subsidiary is annexed to
this Report.
LISTING
At present 19,079,440 Equity Shares of the Company are listed on the
BSE and NSE. The Company has paid the applicable listing fees to these
Stock Exchanges for the financial year 2011-12. The Company's shares
are tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. & National Securities Depository Ltd.
In view of the numerous advantages offered by the depository system,
members are requested to avail of the facility of dematerialization of
the Company's shares on either of the Depositories as aforesaid.
HUMAN RESOURCES
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a scalable requirement and human resource
management process, which enables it to attract and retain employees of
the high caliber. The Company continuously invests in training staff in
the latest technology.
DIRECTORS
Mr. Niranjan A. Shah and Mr. Anil K. Chopra retire by rotation at the
ensuing Annual General Meeting, and being eligible, offer themselves
for re-appointment. The Board recommends their re-appointment.
Brief resume of the Directors proposed to be appointed/ re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold Directorships and Membership/Chairmanship
of Board Committees, as stipulated under the Listing Agreement with the
Stock Exchanges are provided in the Notice forming part of this Annual
Report.
AUDITORS
M/s. J. K. Shah & Co., Chartered Accountants, the statutory auditors of
the Company have expressed their unwillingness for re-appointment at
the ensuing Annual General Meeting. The Audit Committee members and
the Board of Directors have recommended the appointment of M/s. S. R.
Batliboi & Associates, Chartered Accountants as the Statutory Auditors
of the Company to hold office from the conclusion of the ensuing Annual
General Meeting till the conclusion of the next Annual General Meeting
and to fix their remuneration. The Company has received a letter from
M/s. S. R. Batliboi & Associates, Chartered Accountants under the
provisions of Section 224(1 B) of the Companies Act, 1956 expressing
their willingness for appointment as Statutory Auditors, if made by the
members will be within the statutory limits prescribed.
INTERNAL AUDITORS
During the year under review, the Company has engaged the services of
M/s. Jayesh Dadia & Associates, Chartered Accountants, as Internal
Auditors to carry out internal audit on regular basis. The reports of
the internal audit were presented for review before the Audit
Committee. The Audit Committee also scrutinizes all the programmes and
adequacy of the internal audits.
FIXED DEPOSITS
During the financial year 2010-11, the Company has not accepted any
fixed deposit within the meaning of Section 58A of the Companies Act,
1956, and as such, no amount of principal or interest was outstanding
as of the date of the Balance Sheet.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under sub-section (1)(e) of Section 217
of the Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988, the
relevant data pertaining to conservation of energy, technology
absorption and foreign exchange earnings and outgo are furnished
hereunder:
(a) Conservation of energy
The operations of the Company are not energy-intensive. The Company,
however, takes measures to reduce and optimize energy consumption by
using energy efficient computers, CFL bulbs and ballast-based lighting.
Further, offices have been designed to maximize the use of ambient
lighting while conserving the air conditioning. The expense on power in
relation to income is nominal and under control.
(b) Technology absorption
Research & Development (R & D): Since businesses and technologies are
changing constantly, investment in research and development activities
is of paramount importance. Your Company lays a great emphasis on
knowledge management and has an institutionalized process for
absorption of new technologies. Your Company continued its focus on
quality up-gradation product enhancements.
Benefits derived as a result of the above R & D for better productivity
and cost reduction:
(a) Enhanced productivity and reduction in production lead time.
(b) Total traceability of each piece during entire manufacturing
process through customized software.
(c) Reduction in re-work and rejection in the manufacturing process.
(d) Enhancement of product spectrum.
(e) Improvement in quality of existing products.
Future plan of action: Research and Development has been considered as
a continuous process. Steps have been taken for further development of
new products of superior quality, up-gradation of existing product
designs to improve the quality and reduction in rejections.
Expenditure on R & D: As per the established Accounting Policy
Expenditure incurred on Research & Development remains merged with the
respective heads.
Technology Absorption, Adaption & Innovation:
The Company continuously monitors and keep track of technological
up-gradation taking place in other countries in the field of Jewellery
manufacturing and the same are reviewed and considered for
implementation.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under Section 217 of the Companies Act, the Directors
hereby confirm that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. The Directors have 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 of
the Company for that period;
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
iv. The Directors have prepared the annual accounts on a 'going
concern' basis
EMPLOYEE PARTICULARS
The Company does not have any employee whose particulars are required
to be disclosed pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Amendment Rules,
2011, and under Section 217 (1)(e) of the said Act, read with the
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
CAUTIONARY STATEMENT
Statements in this Directors Report and Management Discussion &
Analysis describing the Company's 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 due to
risk of uncertainties associated with our expectations with respect to,
but not limited to, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business, technological changes, exposure to market
risks, general economic and political conditions in India and which
have an impact on our business activities or investments, the monetary
and fiscal policies of India, inflation, deflation, unanticipated
turbulence in interest rates, foreign exchange rates, the performance
of the financial markets in India and globally and raw material
availability and prices, demand & pricing in the- Company's principal
markets, and other incidental factors.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to thank the Company's customers,
members, vendors and bankers for their continued support during the
year. Your Directors also wish to thank the Government of India and its
various agencies, the Santacruz Electronics Export Processing Zone, the
Customs and Excise department, the Reserve Bank of India, the State
Governments of Maharashtra, and other local Government Bodies for their
support, and look forward. To their continued support in the future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Submit Shah Hitesh Shah
Managing Director Executive Director
Mumbai, May 30, 2011
Mar 31, 2010
The Directors take great pleasure in presenting the 21st report on the
business and operations of your Company along with the Annual Report
and Audited Financial Statements for the Financial Year 2009-10.
FINANCIAL HIGHLIGHTS
Your Company earned a Profit Before Tax (PBT) of Rs. 260 Millions, a
growth of 22.64% as compared to PBT of Rs. 212 Millions in the previous
year.
Highlights of the financial performance are as follows:
2009-10 2008-09
Sales 4,753 . 6,694
Gross Profit 477 455
PBID 382 381
Less: Interest 81 132
Less: Depreciation 41 37
PBT 260 212
Provision for Tax 26 9
PAT 234 203
Add: Balance brought forward
from RY 1,151 997
Profit available for appropriation 1,385 1,200
Appropriations:
Transfer to Reserve Fund
General Reserve 18 15
Dividend on Equity Shares 38 29
Corporate Dividend Tax 6 5
Balance carried forward 1,323 1,161
A detailed analysis of the financials is given in the Managements
Discussion and Analysis report that forms part of this Annual Report,
DIVIDEND
The Directors recommend a dividend of 20% i.e. Rs. 2/- per share,
subject to approval of the shareholders at the ensuing 21st Annual
General Meeting. The total outgo on account of dividend and tax thereon
amounts to Rs. 44,643,981/-.
The dividend, if declared at the meeting, shall be paid within the
stipulated period, to those members of the Company whose names appear
on the Register of Members of the Company as on August 25, 2010. In
respect of shares held in Electronic form, the dividend will be paid to
the beneficial owners as per details furnished by the Depositories for
this purpose at the close of business hours on August 17, 2010.
SUBSIDIARIES
During the financial year under review, your Company has formed one
subsidiary company viz. Verigold Jewellery (UK) Ltd. at London, United
Kingdom to access & explore UK & European Market.
Also the US based subsidiary, Renaissance Jewelry New York, Inc., has
entered into a Joint venture with Adrienne Designs, Santa Ana,
California viz. Renaissance Adrienne LLC for distribution of gold
chains & other Jewellery products.
Hence as on March 31, 2010, your Company had two foreign subsidiaries
viz. Renaissance Jewelry New York, Inc. (RJNY) & Verigold Jewellery
(UK) Ltd., London and one step-down subsidiary viz. Renaissance
Adrienne LLC, California.
Pursuant to Section 212 of the Companies Act, 1956, the Company is
required to attach to its Annual Report the Directors Report and
financial statements of its subsidiaries. The Company had applied to
the Central Government of India for an exemption from attaching the
Directors Report, Balance Sheet and Profit and Loss Account of its
subsidiaries to the Annual Report 2009-10. The Central Government, vide
its letter No. 47/581/2010-CL-lll dated June 8, 2010, has granted the
exemption for the year ended March 31, 2010. Accordingly, the financial
statements of the subsidiaries of the Company are not attached to the
Annual Report of the Company. The Company undertakes that the financial
statements of the subsidiary companies for the year ended March 31,
2010 will be made available to the members on request at the Registered
Office/Corporate office of the Company and same will be kept open for
inspection by any member during the office hours of the Company.
SHARE CAPITAL
As a result of amalgamation of Verigold Fine Jewellery Private Limited
and L. J. Creations Private Limited with the Company, the Authorised
share capital of the Company stands increased to Rs. 27,00,00,000/-
(Rupees Twenty Seven Crores only) divided into Rs. 2,70,00,000/- (Two
crore Seventy Lacs) Equity shares of Rs. 10/- (Rupees Ten only) each.
THE EMPLOYEE STOCK PURCHASE SCHEME
The Company has, in accordance with the Employee Stock Purchase Scheme
as approved by the members at the 19,h Annual General Meeting, issued
720,000 (Seven Lac Twenty Thousand) equity shares @ of Rs. 50/- per
share to
RENAISSANCE JEWELLERY LIMITED
The RJL Employee Welfare Trust for onward offering the. same to the
recommended employees.
The ESPS Compensation Committee at its meeting held on July 30, 2009
has considered the onward offering of ESPS shares to the recommended
employees.
The Committee after considering the eligibility criteria under the
Scheme offered these shares to certain employees at the rate of Rs.
10/- per share with premium of Rs. 40/- per share.
Thus, during the financial year under consideration 6,17,500 ESPS
shares were offered to the recommended employees of the Company and its
subsidiary, as per the details given below;
Name of Designation No of % of Consideration
Employee Shares Shares receivereceivable
issued
during
the
year
(A) Renaissance Jewellery Ltd. Amount (Rs.)
Mr. Neville
Tata Executive 1,25,000 20.24 2,083,350 2,083,350 2,083,300
Director
Mr. Nikesh
Shah VP - 1.25.000 20.24 2,083,350 2,083,350 2,083.300
Production
Mr. Parag
Shah VP - 50,000 8.10 833.350 833,350 833,300
Operations
Mr.Sandeep
Shah VP - 50,000 8.10 833,350 833,350 833..300
Procurement
Sub Total (A) 3,50,000 56.68
(B) Renaissance Jewelry New York Inc.
Mr. Nilesh
Shah Chief Financial 75,000 12.15 1,250,000 1,250,000 1,250,000
Officer
Mr. AviLevy President- 1.25,000 20.24 2.083.350 2.083,350 2.083,300
Sales
Mr. Samir Sr. VP- 37,500 6.07 625,000 625,000 625,000
Sanghani Sales
Ms. Holly
White VP - 15000 2.43 250,000 250.000 250,000
Sales
Ms. Robin
RotStein VP - 15,000 2.43 250,000 50,000 250,000
Merchandising
The Company has not issued shares equal to or exceeding
1% of the issued capital to any of the identified employee
during the financial year under consideration
Diluted Earning Per Share (EPS) pursuant to issuance of
shares under ESPS: Rs.12.28.
AWARDS/RECOGNITION
Your Company has consistently received wide recognition for Quality,
Designs, Leadership and Achievements.
Your Company has been honored with Emerging India Awards 2009, the
Indias SME sector award jointly organized by ICICI Bank and CNBC TV18
to recognize and reward Indias most globally competitive SMEs whose
business practices are at par with global giants.
CORPORATE GOVERNANCE
The Company has taken appropriate steps and measures to comply with all
the applicable provisions of Clause 49 and Section 292A of the
Companies Act, 1956. A separate report on Corporate Governance, along
with a certificate of Statutory Auditors of the Company, is annexed
herewith. A certificate from the Managing Director and CFO of the
Company confirming internal controls and checks pertaining to financial
statements for the year ended March 31, 2010 was placed before the
Board of Directors and the Board has noted the same, A list of the
committees of the Board and names of their members and the scope of
each of these committees and other related information is detailed in
the enclosed Corporate Governance Report.
CASH FLOW STATEMENT
In conformity with the provisions of Clause 32 of the listing agreement
with Stock Exchanges, the cash flow statement for the year ended March
31, 2010 is annexed hereto.
CONSOLIDATED ACCOUNTS
In accordance with the requirements of Accounting Standards AS-21
prescribed by the Institute of Chartered Accountants of India, the
Consolidated Accounts of the Company and its subsidiary is annexed to
this Report.
LISTING
At present 19,079,440 Equity Shares of the Company are listed on the
BSE and NSE. TheCompany has paid the applicable listing fees to these
Stock Exchanges for the financial year 2010-11. The Companys shares
are tradable compulsorily in electronic form and the Company has
established connectivity with both the depositories, i.e. Central
Depository Services (India) Ltd. (CDSL) & National Securities
Depository Ltd, (NSDL) In view of the numerous advantages offered by
the depository system, members are requested to avail of the facility
of dematerialization of the Companys shares on either of the
Depositories as aforesaid,
HUMAN RESOURCES
Employees are the key assets of the Company and the Company has created
a healthy and productive work environment which encourages excellence.
Your Company has put in place a- scalable requirement and human
resource management process, which enables it to attract and retain
employees of the high caliber. The Company continuously invests in
training staff in the latest technology.
DIRECTORS
Mr. Pramod Lele, Independent Director of the Company resigned from the
Board of your Company, w.e.f.April 15, 2010. The Board places on record
its appreciation for the valuable services rendered by Mr. Lele during
his tenure as the member of the Board and its Committees.
Mr. Arun Sathe was appointed as an Independent Director to fill the
casual vacancy caused by resignation of Mr. Pramod Lele, at the Board
Meeting held on May 27, 2010.
Mr. Veerkumar Shah and Mr. Vishwas Mehendale retire by rotation at the
ensuing Annual General Meeting, and being eligible, offer themselves
for re-appointment. - The Board recommends their re-appointment.
Brief resume of the Directors .proposed to be appointed/ re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold Directorships and Membership/Chairmanship
of Board Committees, as stipulated under the Listing Agreement with the
Stock Exchanges are provided in the Notice forming part of this Annual
Report.
AUDITORS
M/s J. K, Shah & Co, the present Statutory Auditors of the Company,
retire at the ensuing Annual General Meeting and have confirmed their
eligibility and willingness to accept office, if re-appointed. The
Board recommends their re-appointment.
FIXED DEPOSITS
During the financial year 2009-10, the Company has not accepted any
fixed deposit within the meaning of Section 58A of the Companies Act,
1956, and as such, no amount of principal or interest was outstanding
as of the date of the Balance Sheet.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under sub-section (1)(e) of Section 217
of the Companies Act, 1956 read with Companies (Disclosure of
particulars in the Report of Board of Directors) Rules, 1988, the
relevant data pertaining to conservation of energy, technology
absorption and foreign exchange earnings > and outgo are furnished
hereunder:
(a) Conservation of energy
The operations of the Company are not energy-intensive. The Company,
however, takes measures to reduce and optimize energy consumption by
using energy efficient computers, CFL bulbs and ballast-based lighting.
Further, offices have been designed to maximize the use of ambient
lighting while conserving the air conditioning. The expense on power in
relation to income is nominal and under control.
(b) Technology absorption
Research & Development (R&D): Since businesses and technologies are
changing constantly, investment in research and development activities
is of paramount importance. Your Company lays a great emphasis on
knowledge management and has an institutionalized process for
absorption of new technologies. Your Company continued its focus on
quality up-gradation- product enhancements.
Benefits derived as a result of the above R & D for better productivity
and cost reduction:
(a) Enhanced productivity and reduction inproduction lead time:
(b) Total traceability of each piece during entire manufacturing
process through customized software.
(c) Reduction in re-work and rejection in the manufacturing process.
(d) Enhancement of product spectrum.
(e) Improvement in quality of existing products.
Future plan of action: Research and Development has been considered as
a continuous process. Steps have been, taken for further development of
new products of superior quality, up-gradation of existing product
designs to improve the quality and reduction in rejections.
Expenditure on R & D: As per the established Accounting Policy
Expenditure incurred on Research & Development remains merged with the
respective heads.
Technology Absorption, Adaption & Innovation:
The Company continuously monitors and keep track of technological
up-gradation taking place in other countries in the field of Jewellery
manufacturing and the same are reviewed and considered for
implementation.
(c) Foreign exchange earnings and outgo:
FY. 2009-10 JF.Y. 2008-09
Foreign Exchange Eam.rgs 4746 85 6687.56
Foreign Exchange Outgo 2236.77 2918.71
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section 217 of the Companies Act, the Directors
hereby confirm that:
(i) In preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
(ii) The Directors have 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 of
the Company for that period;
(iii) The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(iv) The Directors have prepared the annual accounts on a going
concern basis.
EMPLOYEE PARTICULARS
The Company does not have any employee whose particulars are required
to be disclosed pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975, and
under Section 217(1)(e) of the said Act, read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988.
CAUTIONARY STATEMENT
Statements in this Directors Report and Management Discussion &
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 due to
risk of uncertainties associated with our expectations with respect to,
but not limited to, changes in Government regulations, tax regimes,
economic developments within India and the countries in which the
Company conducts business, technological changes, exposure to market
risks, general economic and political conditions in India and which have
an impact on our business activities or investments, the monetary and
fiscal policies of India, inflation, deflation, unanticipated turbulence
in interest rates, foreign exchange rates, the performance of the
financial markets in India and globally and raw material availability
and prices, demand & pricing in the Companys principal markets, and
other incidental factors.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to thank the Companys customers,
members, vendors and bankers for their continued support during the
year. Your Directors also wish to thank the Government of India and its
various agencies, the Santacruz Electronics Export Processing Zone, the
Customs and Excise department, the Reserve Bank of India, the State
Governments of Maharashtra, and other local Government Bodies for their
support, and look forward to their continued support in the future.
Your Directors also place on record their appreciation for the
excellent contribution made by all employees of the Company through
their commitment, competence, co-operation and diligence to duty in
achieving consistent growth for the Company.
For and on behalf of the Board,
Sumit Shah Hitesh Shah
Managing Director Executive Director
Mumbai, May 27, 2010