Mar 31, 2015
Dear Members,
The Directors take pleasure in presenting the Forty First Annual Report
together with the audited financial statements for the year ended 31st
March, 2015. The Management Discussion and Analysis has also been
incorporated into this report.
1. FINANCIAL RESULTS
(Rs. in lacs)
Year Ended Year Ended
31st March, 2015 31st March, 2014
Income from Operations 6,013.81 4,000.48
Other Income 3.44 18.95
Total Income 6,017.26 4,019.43
Expenditure 5,499.94 3,649.58
Interest 200.62 169.10
Depreciation 37.36 43.91
Total Expenditure 5,737.92 3,862.59
Profit( ) Loss(-) 279.33 156.84
Provision for Taxation 98.00 58.00
(Add) / Less : Deferred Tax (3.62) (0.85)
Short / (Excess) Provision of
earlier Years  (2.04)
Net profit after tax 184.96 101.73
Balance brought forward from
last year 294.19 202.46
Balance carried forward to the
Balance Sheet 479.15 304.19
2. HIGHLIGHTS OF PERFORMANCE
* Total net sales for the year were Rs. 6,013.81 lacs as compared to
Rs. 4,000.48 lacs in 2014, a growth of 50.32%
* Total profit before tax for the year was Rs. 279.33 lacs as compare
to Rs. 156.84 lacs in 2014
3. BUSINESS OPERATIONS
During the last 12 months, the Company has made a great deal of
changes.
* The Company has increased its total workforce to 100 people from 75
people. Some of these are contract workers and some them are fixed
workers. The Company is controlling the output per worker and has
almost cut any overtime expenses which otherwise puts any unnecessary
load on the Company.
* The Company has worked in depth to cut its gold losses and has been
very successful in bringing this loss down by almost 1% using better
suction machines, complete vacuum cleaning of all carpets twice in a
day in gold dust areas and increasing hand washing to collect the gold
dust in central setting tanks.
* The Company has purchased some new machines like laser welders which
increases its production and improve the quality of our product. The
Company have also bought a laser marker for marking jewellery as all
the clients are insisting to engrave diamond weights inside the pieces.
Earlier this function was outsourced. With the use of laser maker, there
is saving in costs and enhances security of diamonds as no piece has to
leave factory for any reason.
* The Company has also purchased a new 3D printer. With the use of
these 3D printers, all its designs and models are made in-house. This
again leads to saving in costs and faster processing. Earlier this was
also outsourced which used to result in leakage of designs.
* The Company has concentrated mainly on the domestic market and
increased our sales considerably working with safe clients. The Company
has increased its business marginally in the Middle East after
exercising due caution by providing on time deliveries and receiving
payments.
* The Company's cautious and hands on approach combined with its high
quality products has helped us to grow well during this year and the
Company is hopeful to continue this trend in the years to come.
* The Company is expanding its staff strength to 125 in the next few
months.
4. DIVIDEND
Your Directors do not recommend any dividend for the year as the
profits earned need to be ploughed back into the operations of the
company and will be used for working capital requirements of the
Company.
5. SHARE CAPITAL
The paid up Equity Share Capital as on 31st March, 2015 was Rs. 578.80
Lakhs. During the year under review, the Company has not issued shares
with differential voting rights nor granted stock options nor sweat
equity.
6. FINANCE
Cash and cash equivalent as at 31st March, 2015 was Rs. 1,04,737/-. The
Company continues to focus on judicious management of its working
capital. Receivables, inventories and other working capital parameters
were kept under strict check through continuous monitoring.
6.1 DEPOSITS
The Company has not accepted deposit from the public and shareholders
falling within the ambit of Section 73 and 74 of the Companies Act,
2013 and The Companies (Acceptance of Deposits) Rules, 2014.
6.2 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the
notes to the Financial Statements.
7. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The criteria prescribed for the applicability of Corporate Social
Responsibility under Section 135 of the Companies Act, 2013 is not
applicable to the Company.
8. BUSINESS RISK MANAGEMENT
The nature of business is manufacturing of Jewellery. The inheritant
risk to the business of the company is as follows:
a. Foreign Exchange Risk
b. Gold Price Risk
c. Stiff Competition
d. Government Policy on import of gold
e. Risk elements in business transactions
f. Labour Risk
All the above risk has been discussed in the Management Discussion &
Analysis Report. The price of Jewellery consist of Gold, Diamonds &
Labour, out of this three, Gold and diamonds consist of 90% of the
price of Jewellery. The Company has no control on the price of Gold and
Diamonds and the same is available through Exchanges, Market and Banks.
The nature of risk is dynamic of business and entrepreneurship. The
Company has not formed Risk Management Committee and considered it as
optional item as prescribed under Clause 49 of Listing Agreement.
9. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The scope and authority of the
Internal Audit (IA) function is defined in the Internal Audit Charter.
To maintain its objectivity and independence, the Internal Audit
function reports to the Chairman of the Audit Committee of the Board.
The Company monitors and evaluates the efficacy and adequacy of
internal control system in the Company, its compliance with operating
systems, accounting procedures and policies at all locations of the
Company. Based on the report of internal audit function, process owners
undertake corrective action in their respective areas and thereby
strengthen the controls.
10. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has a vigil mechanism to deal with instance of fraud and
mismanagement, if any. The detail of the Whistle Blower Policy is
explained in the Corporate Governance Report.
11. SUBSIDIARY COMPANIES
The Company has no Subsidiary Company.
12. DIRECTORS:
In terms of the Articles of Association of the Company, Mr. Ajay
Gehani, Managing Director, retires by rotation at the ensuing Annual
General Meeting and being eligible, offers himself for re-appointment.
Pursuant to Section 149, 161(1) of the Companies Act, 2013 and Articles
of Association of the Company, Mrs. Deepika Gehani was appointed as a
Woman Director of the Company at the Board meeting held on 30th May,
2015. In terms of provisions of Section 161(1) of the Act, Mrs. Deepika
Gehani would hold office up to the date of the ensuing Annual General
Meeting. The Company has received notices in writing from members along
with a deposit of requisite amount under Section 160 of the Act
proposing the candidature of Mrs. Deepika Gehani for the office of
Director of the Company. The resolution no. 4 has been included in the
notice for the same.
The Company proposes to appoint Mrs. Deepika Gehani as a Woman Director
under Section 149 of the Act and Clause 49 of the Listing Agreement,
liable to retire by rotation.
The present tenure of Mr. Ramesh Gehani as Executive Chairman will
expire on 31st August, 2015. The Nomination and Remuneration Committee
has recommended the re-appointment of Mr. Ramesh Gehani as Executive
Chairman. The Board of Directors has decided to re-appoint him as
Executive Chairman and the item no. 5 of notice is for the same.
The Company proposes to appoint Mrs. Deepika Gehani as Chief Financial
Officer (CFO) with effect from 1st June, 2015 for a period of five
years. The resolution no. 6 has been included in the notice for the
same.
12.1 Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance, the directors individually as well
as the evaluation of the working of its Audit, Nomination &
Remuneration and Stakeholders Relationship Committees. The manner in
which the evaluation has been carried out has been explained in the
Corporate Governance Report.
12.2 Remuneration Policy
The Board has, on the recommendation of the Nomination & Remuneration
Committee framed a policy for selection and appointment of Directors,
Senior Management and their remuneration. The Remuneration Policy is
stated in the Corporate Governance Report.
12.3 Meetings
A calendar of Meetings is prepared and circulated in advance to the
Directors.
During the year four Board Meetings and four Audit Committee Meetings
were convened and held. The details of which are given in the Corporate
Governance Report. The intervening gap between the Meetings was within
the period prescribed under the Companies Act, 2013.
13. DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) of the Companies
Act, 2013:
a) that in the preparation of the annual financial statements for the
year ended 31st March, 2015, the applicable accounting standards have
been followed along with proper explanation relating to material
departures, if any;
b) that such accounting policies as mentioned in Note 1 of the Notes to
the Financial Statements have been selected and applied consistently
and judgement and estimates have been made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2015 and of the profit of the Company for
the year ended on that date;
c) that 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;
d) that the annual financial statements have been prepared on a going
concern basis;
e) that proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively.
f) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
14. RELATED PARTY TRANSACTIONS
During the year the company has not entered into any related party
transactions except payment of remuneration and sitting fees to the
directors.
15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and
its future operations.
16. AUDITORS
16.1 Statutory Auditors
The Company's Auditors, M/s. J. D. Zatakia & Co., Chartered
Accountants, Mumbai who retire at the ensuing Annual General Meeting of
the Company are eligible for reappointment. They have confirmed their
eligibility under Section 141 of the Companies Act, 2013 and the Rules
framed thereunder for reappointment as Auditors of the Company. As
required under Clause 49 of the Listing Agreement, the auditors have
also confirmed that they hold a valid certificate issued by the Peer
Review Board of the Institute of Chartered Accountants of India.
16.2 Secretarial Audit
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed M/s P P Shah & Co.,
Company Secretary in Practice to undertake the Secretarial Audit of the
Company. The Report of the Secretarial Audit Report is annexed herewith
as "Annexure A".
16.3 Qualifications in the Secretarial Report
1. As per section 203(1 )(ii), (iii) & 149, the Company is require to
appoint Company Secretary & Chief Financial Officer. The Company has
not appointed Company Secretary & Chief Financial Officer.
Management Response:
(i) The Company has appointed Mr. Ajay Gehani, Director Compliance
Officer of the Company who looks after the compliance of Companies Act,
2013 and SEBI Act and rules made thereunder
(ii) The Company has availed the services of Practising Company
Secretary for advising on compliance of Companies Act, 2013 and SEBI
Act and rules made thereunder
(iii) The Company has appointed Mrs. Deepika A Gehani as Chief
Financial Officer (CFO) of the Company with effect from 1st June, 2015.
(iv) The Volume and Scope of work for the Company Secretary is less and
it is not a full time work and the job of Company Secretary is not
attractive commensurate with the scope of work and salary.
2. As per section 138 of the Companies Act, 2013, the Company is
required to appoint Internal Auditor. The Company has not appointed
Internal Auditor.
Management Response:
(i) The size of operation of the Company is very small, it is not
viable to appoint Internal Auditor but the Company has established the
internal control system.
3. As per the various sections of the Companies Act and Listing
Agreement, the Company is required to post various information,
policies on the website of the Company. The Company has not posted any
information, policies on the website of the Company.
Management Response:
(i) The Company is filling regularly all the information with BSE and
all the information is available on the website of BSE
4. As per section 149 of the Companies Act, 2013 and clause 49 of
Listing Agreement, the Company is required to appoint Woman Director.
The Company has not appointed Woman Director.
Management Response:
(i) The Company has appointed Mrs. Deepika A Gehani as Woman Director
at the Board Meeting held on 30th May, 2015.
17. ENHANCING SHAREHOLDERS VALUE
Your Company believes that its Members are among its most important
stakeholders. Accordingly, your Company's operations are committed to
the pursuit of achieving high levels of operating performance and cost
competitiveness, consolidating and building for growth, enhancing the
productive asset and resource base and nurturing overall corporate
reputation. Your Company is also committed to creating value for its
other stakeholders by ensuring that its corporate actions positively
impact the socio-economic and environmental dimensions and contribute
to sustainable growth and development.
18. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate section on corporate governance practices followed by the
Company, together with a certificate from the Practicing Company
Secretaries forms an integral part of this Report.
19. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3)(m)
of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts)
Rules, 2014, is annexed herewith as "Annexure B".
20. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form
MGT 9 is annexed herewith as "Annexure C".
21. PARTICULARS OF EMPLOYEES
There is no employee in the Company drawing monthly remuneration of
Rs.5,00,000/- per month or Rs.60,00,000/- per annum. Hence the Company
is not required to disclose any information as per Rule, 5(2) of The
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014.
22. REMUNERATION OF THE DIRECTORS/ KEY MANAGERIAL PERSONNEL (KMP)/
EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 (1)
(i) of The Companies (Appointment and Remuneration) Rules, 2014 in
respect of ratio of remuneration of each director to the median
remuneration of the employees of the Company for the Financial Year are
as follows:
Sr. Name Designation Remuneration Median Ratio
No. of the Per Annum Remune (Remune
Director (INR) ration ration
Per of
Annum Director
(INR) to
Median
Remune
ration)
1. Mr. Ramesh Executive 14,99,400 - -
Gehani Chairman
2. Mr. Ajay Managing 29,98,800 - -
Gehani Director
23. ACKNOWLEDGEMENTS
Your Directors thank the various Central and State Government
Departments, Organizations and Agencies for the continued help and
co-operation extended by them. The Directors also gratefully
acknowledge all stakeholders of the Company viz. customers, members,
dealers, vendors, banks and other business partners for the excellent
support received from them during the year. The Directors place on
record their sincere appreciation to all employees of the Company for
their unstinted commitment and continued contribution to the Company.
24. CAUTIONARY STATEMENT
Statements in the Board's Report and the Management Discussion &
Analysis describing the Company's objectives, expectations or forecasts
may be forward-looking within the meaning of applicable securities laws
and regulations. Actual results may differ materially from those
expressed in the statement. Important factors that could influence the
Company's operations include global and domestic demand and supply
conditions affecting selling prices of finished goods, input
availability and prices, changes in government regulations, tax laws,
economic developments within the country and other factors such as
litigation and industrial relations.
For and on behalf of the Board of Directors
Ramesh Gehani Ajay Gehani
(Executive Chairman) (Managing Director)
Mumbai
Date: 30th May, 2015
Mar 31, 2014
The Members,
The Directors are pleased to present the Fortieth Annual Report and
the Company''s audited accounts for the financial year ended 31st March,
2014.
A. FINANCIAL RESULTS
(Rs. in Lakhs)
Year Ended Year Ended
31st March, 31st March,
2014 2013
Income from Operations 4000.48 3417.54
Other Income 18.95 0.33
Total Income 4019.43 3417.86
Expenditure 3649.58 3113.04
Interest 169.10 141.57
Depreciation 43.91 43.11
Total Expenditure 3862.59 3297.72
profit( ) Loss(-) 156.84 120.14
Provision for Taxation 58.00 50.00
(Add) / Less : Deferred Tax (0.85) (3.52)
Short / (Excess) Provision
of earlier Years (2.04) 0.0
Net profit after tax 101.73 73.66
Balance brought forward
from last year 202.46 128.80
Balance carried forward to
the Balance Sheet 304.19 202.46
B. DIVIDEND
Your Directors do not recommend any dividend for the year as the profits
earned need to be ploughed back into the operations of the company.
C. WORKING OF THE COMPANY
During the year the company has achieved turnover of Rs. 4000.48 lacs
as against Rs.3417.54 lacs in the previous year. The increase in
turnover is due to increase in domestic sales and export sales of Rs.
219.23 lacs. The Company has already started selling jewellery in the
Indian Jewellery Retail Market and is supplying to big jewellery stores
in Metro cities. The Company has also started exporting to Middle East
countries. This has resulted in higher turnover for the Company and in
the current year is looking forward to maintain the growth momentum.
D. DIRECTORS
Mr. Ajay Gehani, Director retires by rotation at the ensuing Annual
General Meeting and being eligible, offers himself for re-appointment.
Mr. Ajay Gehani has been re-appointed as the Managing Director of the
Company w.e.f 1st April, 2014 for a period of 3 years vide special
resolution passed in the Extra Ordinary General Meeting of the Company
held on 15th March, 2014.
In terms of the articles of association of the Company, section 149
(10) of the Companies Act, 2013 and revised clause 49 of Listing
Agreement dealing with Corporate Governance norms, Mr. Mohanram Pai has
completed 5 years term as Independent Directors as on 1st April, 2014.
Mr. Rajesh Arora has completed 3 years as Independent Directors as on
1st April, 2014. The Company proposes to re-appoint them, as
Independent Directors for a further period of 5 years till 2019. The
Company has received requisite notices in writing from members
proposing Mr. Mohanram Pai and Mr. Rajesh Sitaram Arora for appointment
as Independent Directors.
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 subsection 6 of section 149 of
the Companies Act, 2013 and under clause 49 of the listing agreement
with the stock exchanges.
E. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The disclosures in terms of Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, (Referred to as the rules) are as
follows:
A. Conservation of Energy:
The activity of the Company does not require large scale consumption of
energy. Hence, the Company has not taken any energy conservation
measures. There are no additional investments and proposals, for
reduction of consumption of energy. The Company does not fall within
the category of list of industries mentioned in Schedule forming part
of the rules. Hence, no disclosures are required to be given in Form A
as annexed to the rules.
B. Technology Absorption:
The Company carries out general Research and Development in the
manufacture of Jewellery as per international standards, in developing
new range of products, manufacturing process etc. The disclosures
required to be given in Form B as annexed to the rules are as follows:
Form for Disclosure of Particulars with respect to absorption Research
& Development (R & D):
Specific Areas in which R & D carried Manufacture of Jewellery
out by the Company.
benefits derived as a result
of the Helped in better quality output,
with above R & D. improved productivity.
Future Plan of Action Development of new designs
in Jewellery.
Expenditure on R & D: The Company carries out
the R & D work in-house.
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d)Total R & D expenditure as a Nil
percentage of Total Turnover
Technology absorption, adaptation and innovation
Efforts, in brief, made towards technology absorption, adaptation &
innovation
We use the latest laser technology and all automatic casting machines
in order to achieve a very high level of fnish and setting quality.
This combined with mirror polish in our jewellery makes it one of the
fnest collections in the country.
benefits derived as a result of above efforts
Due to this fnish we are able to work with the leading retailers and
wholesalers in India and Europe and they have achieved tremendous
success with our product line
Imported Technology The Company has not imported any technology.
F. FIXED DEPOSITS
The Company has not accepted any deposit from the public.
G. INFORMATION PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956.
Information in accordance with the section 217(2A) of the Companies
Act, 1956 read with the Companies (Disclosure of particulars in report
of Board of Directors) Rules, 1988 and forming parts of the Director''s
Report for the year ended 31st March, 2014 is not given as no employee
is in receipt of remuneration in excess of Rs.5,00,000/- p.m. or Rs.
60,00,000/- p.a.
H. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial year
31st March, 2014, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
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 or loss of the Company for the year under review.
iii) That the Directors have taken proper and suffcient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial year
ended 31st March, 2014 on a going concern basis.
I. LISTING OF SHARES
The company''s shares are listed on the Bombay Stock Exchange and the
Company has paid the listing fees for the same.
J. CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certifcate from the Practising Company Secretary
confirming the compliance of conditions on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
K. AUDITORS
M/s. J. D. Zatakia & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment.
M. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
Shareholders, Customers, Bankers, and Employees for their co-operation
and contributions made by them at all levels.
By Order of the Board of Directors
For SOVEREIGN DIAMONDS LIMITED
Sd/- Sd/-
Place: Mumbai AJAY R. GEHANI RAMESH GEHANI
Date: 26th May, 2014 MANAGING DIRECTOR EXECUTIVE CHAIRMAN
Mar 31, 2013
To The Members,
The Directors present their Thirty- Ninth Annual Report together with
the Audited Accounts for the year ended 31st March, 2013.
A. FINANCIAL RESULTS
(Rs. in Lakhs)
Year Ended Year Ended
31st March,
2013 31st March,
2012
Income from Operations 3417.54 2689.93
Other Income 0.33 1.18
Total Income 3417.86 2691.11
Expenditure 3113.04 2467.75
Interest 141.57 118.13
Depreciation 43.11 33.60
Total Expenditure 3297.72 2619.48
Profit( ) Loss(-) 120.14 71.63
Provision for Taxation 50.00 26.00
(Add) / Less : Deferred Tax (3.52) (0.83)
Short / (Excess) Provision
of earlier Years 0.0 (0.42)
Net profit after tax 73.66 46.88
Balance brought forward
from last year 128.80 81.91
Balance carried forward
to the Balance Sheet 202.46 128.80
B. DIVIDEND
Your Directors do not recommend any dividend for the year as the
profits earned need to be ploughed back into the operations of the
company.
C. WORKING OF THE COMPANY
During the year the company has achieved turnover of Rs. 3417.54 lacs
as against Rs.2689.93 lacs in the previous year. The increase in
turnover is due to increase in domestic sales. The Company has already
started selling jewellery in the Indian Jewellary Retail Market and is
supplying to big jewellery stores in Metro cities. This has resulted in
higher turnover for the Company and in the current year the Company is
looking forward to maintain the growth momentum.
D. DIRECTORS
Mr. Ramesh Gehani, Director retires by rotation at the ensuing Annual
General Meeting and being eligible has offered himself for
re-appointment.
E. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The disclosures in terms of Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, (Referred to as the rules) are as
follows:
A. Conservation of Energy:
The activity of the Company does not require large scale consumption of
energy. Hence, the Company has not taken any energy conservation
measures. There are no additional investments and proposals, for
reduction of consumption of energy. The Company does not fall within
the category of list of industries mentioned in Schedule forming part
of the rules. Hence, no disclosures are required to be given in Form A
as annexed to the rules.
B. Technology Absorption:
The Company carries out general Research and Development in the
manufacture of
Jewellery as per international standards, in developing new range of
products, manufacturing process etc. The disclosures required to be
given in Form B as annexed to the rules are as follows:
Form for Disclosure of Particulars with respect to absorption Research
& Development (R & D): Specific Areas in which R & D Manufacture of
Jewellery carried out by the Company.
Benefits derived as a result of Helped in better quality output, with
the above R & D. improved productivity.
Future Plan of Action Development of new designs in Jewellery.
Expenditure on R & D: The Company carries out the R & D work
in-house.
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d) Total R & D expenditure as a
percentage of Total Turnover NiL
Technology absorption, adaptation and innovation
Efforts, in brief, made towards We use the latest laser technology and
technology absorption, adaptation all automatic casting machines in
order to & innovation achieve a very high level of finish and setting
quality. This combined with mirror polish in our jewellery makes it one
of the finest collection in the country. Benefits derived as a result
of Due to this finish we are able to work with above efforts the
leading retailers and wholesalers in
India and Europe and they have achieved tremendous success with our
product line Imported Technology The Company has not imported any
technology.
C. Foreign Exchange Earning and Outgo: Rs. In lakhs
2012-2013 2011-2012
Foreign Exchange Earnings/Outgo:
Foreign Exchange Earned: 42.17 185.80
Foreign Exchange Outgo: 0.00 0.0
Travelling / Exhibition Charges 9.14 23.31
F. FIXED DEPOSITS
The Company has not accepted any deposit from the public.
G. INFORMATION PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956.
Information in accordance with the section 217(2A) of the Companies
Act, 1956 read with the Companies (Disclosure of particulars in report
of Board of Directors) Rules, 1988 and forming parts of the Director''s
Report for the year ended 31st March, 2013 is not given as no employee
is in receipt of remuneration in excess of Rs.5,00,000/- p.m. or Rs.
60,00,000/- p.a.
H. COMMENTS ON AUDIT REMARKS.
Company has taken group gratuity scheme policy with LIC. The Company is
in the process of obtaining certificate for determining gratuity
liability from Acturian.
I. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2013, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
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 or loss of the Company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2013 on a going concern basis.
J. LISTING OF SHARES
The company''s shares are listed on the Bombay Stock Exchange and the
Company has paid the listing fees for the same.
K. CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certificate from the Practising Company Secretary
confirming the compliance of conditions on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
L. AUDITORS
M/s. J. D. Zatakia & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment. The Company has received a certificate from them to
the effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1B) of the Companies Act,
1956.
M. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its
Shareholders, Customers, Bankers, and Employees for the co-operation
and contributions made by them at all levels.
By Order of the Board of Directors
For SOVEREIGN DIAMONDS LIMITED
sd/- sd/-
Place: Mumbai AJAY R. GEHANI RAMESH GEHANI
Date: 25th May, 2013 MANAGING DIRECTOR EXECUTIVE CHAIRMAN
Mar 31, 2012
The Directors present their Thirty- Eighth Annual Report together with
the Audited Accounts for the year ended 31st March, 2012
A. FINANCIAL RESULTS (Rs. in Lakhs)
Year Ended Year Ended
31st March, 31st March,
2012 2011
Income from Operations 2689.93 1935.97
Other Income 1.18 2.01
Total Income 2691.11 1937.98
Expenditure 2467.75 1817.98
Interest 118.13 58.39
Depreciation 33.60 28.89
Total Expenditure 2619.48 1905.26
Profit( ) Loss(-) 71.63 32.72
Provision for Taxation 26.00 15.00
(Add) / Less : Deferred Tax (0.83) (1.55)
Short / (Excess) Provision
of earlier Years (0.42) (1.71)
Net profit after tax 46.88 20.98
Balance brought forward
from last year 81.91 60.93
Balance carried forward to
the Balance 128.79 81.91
Sheet
B. DIVIDEND
Your Directors do not recommend any dividend for the year as the
profits earned need to be ploughed back into the operations of the
company.
C. WORKING OF THE COMPANY
During the year the company has achieved turnover of Rs.2689.93 lacs as
against Rs.1935.97 lacs in the previous year. The increase in turnover
is due to fluctuation in Dollar rate. The Company is entering into the
Indian Jewellery Retail Market and supplying to big Jewellery stores in
Metro cities. This will results in higher turnover for the Company.
D. DIRECTORS
Mr. Ajay Gehani, Director retires by rotation at the ensuing Annual
General Meeting and being eligible has offered himself for
re-appointment.
E. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The disclosures in terms of Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, (Referred to as the rules) are as
follows:
A. Conservation of Energy:
The activity of the Company does not require large scale consumption of
energy.
Hence, the Company has not taken any energy conservation measures.
There are no additional investments and proposals, for reduction of
consumption of energy. The Company does not fall within the category of
list of industries mentioned in Schedule forming part of the rules.
Hence, no disclosures are required to be given in Form A as annexed to
the rules.
B. Technology Absorption:
The Company carries out general Research and Development in the
manufacture of Jewellery as per international standards, in developing
new range of products, manufacturing process etc. The disclosures
required to be given in Form B as annexed to the rules are as follows:
Form for Disclosure of Particulars with respect to absorption Research
& Development (R & D):
Specific Areas in which R & D carried Manufacture of Jewellery
out by the Company.
Benefits derived as a result
of the Helped in better quality output,
with
above R & D. improved productivity.
Future Plan of Action Development of new designs in
Jewellery.
Expenditure on R & D: The Company carries out the R & D
work in-house.
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d) Total R & D expenditure
as a Nil
percentage of Total Turnover
Technology absorption, adaptation and innovation
Efforts, in brief,
made towards We use the latest laser technology and
technology absorption,
adaptation & all automatic casting machines in order
innovation to achieve a very high level of finish
and setting quality. This combined with
mirror polish in our jewellery makes it
one of the finest collection in the country_
Benefits derived as a
result of above Due to this finish we are able to
work efforts with the leading retailers and
wholesalers in India and Europe and they
have achieved tremendous success
with our product line
Imported Technology The Company has not imported any
technology.
C. Foreign Exchange Earning and Outgo:
Rs. In lakhs
2011-2012 2010-2011
Foreign Exchange Earnings/Outgo:
Foreign Exchange Earned: 185.80 197.42
Foreign Exchange Outgo: 0.0 0.0
Travelling / Exhibition Charges 23.31 16.01
F. FIXED DEPOSITS
The Company has not accepted any deposit from the public.
G. INFORMATION PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956.
Information in accordance with the section 217(2A) of the Companies
Act, 1956 read with the Companies (Disclosure of particulars in report
of Board of Directors) Rules, 1988 and forming parts of the Director's
Report for the year ended 31st March, 2012 is not given as no employee
is in receipt of remuneration in excess of Rs.5,00,000/- p.m. or Rs.
60,00,000/- p.a.
H. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2012, the applicable accounting standards have been
followed along with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
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 or loss of the Company for the year under review.
ii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2012 on a going concern basis.
I. AUDITORS QUALIFICATION:
The qualification in auditor's report has been dealt in the notes
forming part of accounts which is self explanatory
J. LISTING OF SHARES
The company's shares are listed on the Bombay Stock Exchange and the
Company has paid the listing fees for the same.
K. CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certificate from the Practicing Company Secretary
confirming the compliance of conditions on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
L. AUDITORS
M/s. J. D. Zatakia & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment. The Company has received a certificate from them to
the effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1B) of the Companies Act,
1956.
By Order of the Board of Directors
For SOVEREIGN DIAMONDS LIMITED
Sd/- Sd/-
AJAY R. GEHANI RAMESH GEHANI
MANAGING DIRECTOR EXECUTIVE CHAIRMAN
Place: Mumbai
Date: 2nd August, 2012
Mar 31, 2011
The Members,
The Directors present their Thirty-Seventh Annual Report together with
the Audited Accounts for the year ended 31st March, 2011
A. FINANCIAL RESULTS
(Rs. in Lakhs)
Year Ended Year Ended
31st March, 31st March,
2011 2010
Income from Operations 1950.14 1215.22
Other Income 4.34 2.22
Total Income 1954.48 1217.44
Expenditure 1836.23 1137.64
Interest 56.64 45.83
Depreciation 28.89 31.67
Total Expenditure 1921.76 1215.14
Profit( ) Loss(-) 32.72 2.29
Provision for Taxation 15.00 3.00
Add / Less : Deferred Tax 1.55 2.95
Net profit after tax 19.27 2.24
Less : Transfer to General Reserve - -
Add : Prior Year Income Tax 1.71 -
Balance brought forward from last year 60.93 58.69
Balance carried forward to the Balance 81.91 60.93
Sheet
B. DIVIDEND
Your Directors do not recommend any dividend for the year as the
profits earned need to be ploughed back into the operations of the
company.
C. WORKING OF THE COMPANY
During the year the company has achieved turnover of Rs. 1950.14 lacs
as against Rs. 1215.22 lacs in the previous year. The increase in
turnover is due to fluctuation in Dollar rate. The Company is entering
into the Indian Jewellary Retail Market and supplying to big jewellery
stores in Metro cities. This will results in higher turnover for the
Company.
D. DIRECTORS
Mr. Mohanram Pai, Director retires by rotation at the ensuing Annual
General Meeting and being eligible has offered himself for
re-appointment.
Mr. Rajesh Arora has been appointed as an Additional Director under
Article 116 of the Articles of Association of the Company on 13-08-2011
and he holds the office upto the date of this Annual General Meeting.
The Company has received a notice from a shareholder in writing
signifying his intention to appoint him as Director of the Company. The
term of his office is liable to retire by rotation.
Mr. Vijay Kalantri has resigned as Director of the Company w.e.f.
13-08-2011. The Board recorded its appreciation for the valuable
contribution made by him during his tenure as Director
E. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The disclosures in terms of Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, (Referred to as the rules) are as
follows:
A. Conservation of Energy:
The activity of the Company does not require large scale consumption of
energy.
Hence, the Company has not taken any energy conservation measures.
There are no additional investments and proposals, for reduction of
consumption of energy. The Company does not fall within the category of
list of industries mentioned in Schedule forming part of the rules.
Hence, no disclosures are required to be given in Form A as annexed to
the rules.
B. Technology Absorption:
The Company carries out general Research and Development in the
manufacture of Jewellery as per international standards, in developing
new range of products, manufacturing process etc. The disclosures
required to be given in Form B as annexed to the rules are as follows:
Form for Disclosure of Particulars with respect to absorption Research
& Development (R & D):
Specific Areas in which R & D carried Manufacture of Jewellery
out by the Company.
Benefits derived as a result of the Helped in better quality
output, with
above R & D. improved productivity.
Future Plan of Action Development of new
designs in Jewellery.
Expenditure on R & D: The Company carries out
the R & D work in-house.
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d) Total R & D expenditure as a Nil
percentage of Total Turnover
Technology absorption, adaptation and innovation
Efforts, in brief, made towards We use the latest laser
technology and
technology absorption, adaptation & all automatic casting
machines in order
innovation to achieve a very high
level of finish
and setting quality.
This combined with mirror
polish in our jewellery
makes it one of the finest
collection in the country
Benefits derived as a result of above Due to this finish we are
efforts able to work with the leading
retailers and wholesalers
in India and Europe and they
have achieved tremendous
success with our product
line
Imported Technology The Company has not imported
any technology.
C. Foreign Exchange Earning and Outgo:
Rs. In lakhs
2010-2011 2009-2010
Foreign Exchange Earnings/Outgo:
Foreign Exchange Earned: 197.42 239.76
Foreign Exchange Outgo: 0.0 7.98
Travelling / Exhibition Charges 16.01 80.12
F. FIXED DEPOSITS
The Company has not accepted any deposit from the public.
G. INFORMATION PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956.
Information in accordance with the section 217(2A) of the Companies
Act, 1956 read with the Companies (Disclosure of particulars in report
of Board of Directors) Rules, 1988 and forming parts of the Director's
Report for the year ended 31st March, 2011 is not given as no employee
is in receipt of remuneration in excess of Rs. 2,00,000/- p.m. or Rs.
24,00,000/- p.a.
H. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2011, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
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 or loss of the Company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2011 on a going concern basis.
I. AUDITORS QUALIFICATION:
The qualification in auditors report has been dealt in the notes
forming part of accounts which is self explanatory
J. LISTING OF SHARES
The companyÃs shares are listed on the Bombay Stock Exchange and the
Company has paid the listing fees for the same.
K. CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certificate from the Practising Company Secretary
confirming the compliance of conditions on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
L. AUDITORS
M/s. J. D. Zatakia & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment. The Company has received a certificate from them to
the effect that their re-appointment, if made would be within the
prescribed limits specified under Section 224(1B) of the Companies Act,
1956.
By Order of the Board of Directors
For SOVEREIGN DIAMONDS LIMITED
sd/- sd/-
AJAY R. GEHANI RAMESH GEHANI
MANAGING DIRECTOR EXECUTIVE CHAIRMAN
Place: Mumbai
Date : 30th August, 2011
Mar 31, 2010
The Directors present their Thirty-Sixth Annual Report together with
the Audited Accounts for the year ended 31st March, 2010
A. FINANCIAL RESULTS
(Rs. in Lakhs)
Year Ended Year Ended
31st March, 2010 31st March, 2009
Income from Operations 1215.22 1707.30
Other Income 2.22 4.70
Total Income 1217.44 1712.00
Expenditure 1137.64 1624.67
Interest 45.83 55.06
Depreciation 31.67 31.28
Total Expenditure 1215.14 1711.01
Proft(+) Loss(-) 2.2 9 .99
Provision for Taxation 3.00 5.75
Fringe Benefit Tax 0.00 5.50
Add : Deferred Tax 2.95 3.06
Net profit after tax 2.24 -7.2
Less : Transfer to General Reserve - -
Less : Prior Year Income Tax - -
Balance brought forward from
last year 58.69 65.83
Balance carried forward to
the Balance Sheet 60.93 58.63
B. DIVIDEND
Your Directors do not recommend any dividend for the year as the
profits earned need to be ploughed back into the operations of the
company.
C. WORKING OF THE COMPANY
During the year the company has achieved turnover of Rs.1278.23 lacs as
against Rs.1712.52 lacs in the previous year. The increase in turnover
is due to fluctuation in Dollar rate. The Company is entering into the
Indian Jewellery Retail Market and supplying to big jewellery stores in
Metro cities. This will results in higher turnover for the Company.
D. DIRECTORS
Mr. Ajay Gehani, Director retire by rotation at the ensuing Annual
General Meeting and being eligible offer himself for re-appointment.
The present term of Mr. Ramesh Gehani and Mr. Ajay Gehani as Managing
Director is expiring on 15th September, 2010. The Board of Directors
proposed to re-appoint them for a period of 5 years and the necessary
resolution has been incorporated in the notice.
E. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUT GO
The disclosures in terms of Section 217(1)(e) of the Companies Act,
1956 read with the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988, (Referred to as the rules) are as
follows:
A. Conservation of Energy:
The activity of the Company does not require large scale consumption of
energy. Hence, the Company has not taken any energy conservation
measures. There are no additional investments and proposals, for
reduction of consumption of energy. The Company does not fall within
the category of list of industries mentioned in Schedule forming part
of the rules. Hence, no disclosures are required to be given in Form A
as annexed to the rules.
B. Technology Absorption:
The Company carries out general Research and Development in the
manufacture of Jewellery as per international standards, in developing
new range of products, manufacturing process etc. The disclosures
required to be given in Form B as annexed to the rules are as follows:
Form for Disclosure of Particulars with respect to absorption Research
& Development (R & D):
Specific Areas in which R & D Manufacture of Jewellery
carried out by the Company.
Benefits derived as a result of the Helped in better quality
output,
with improved
above R & D. productivity.
Future Plan of Action Development of new designs in
Jewellery.
Expenditure on R & D: The Company carries out the
R & D
work in-house.
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d) Total R & D expenditure as a Nil
percentage of Total Tur over
Technology absorption, adaptation and innovation
Efforts, in brief, made towards technology absorption, adaptation &
innovation We use the latest laser technology and all automatic casting
machines in order to achieve a very high level of finish and setting
quality. This combined with mirror polish in our jewellery makes it
one of the finest collection in the country.
Benefits derived as a result of above efforts.
Due to this finish we are able to work with the leading retailers and
wholesalers in India and Europe and they have achieved tremendous
success with our product line.
Imported Technology
The Company has not imported any technology.
C. Foreign Exchange Earning and Outgo:
2009-2010 2008-2009
Foreign Exchange Earnings/Outgo:
Foreign Exchange Earned: 239.76 453.91
Foreign Exchange Outgo: 7.98 19.78
Travelling / Exhibition Charges 80.12 45.60
F. FIXED DEPOSITS
The Company has not accepted any deposit from the public.
G. INFORMATION PURSUANT TO SECTION 217(2A) OF THE COMPANIES ACT, 1956.
Information in accordance with the section 217(2A) of the Companies
Act, 1956 read with the Companies (Disclosure of particulars in report
of Board of Directors) Rules, 1988 and forming parts of the Directors
Report for the year ended 31st March, 2010 is not given as no employee
is in receipt of remuneration in excess of Rs. 2,00,000/- p.m. or Rs.
24,00,000/- p.a.
H. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors Responsibilities Statement, it
is hereby confirmed;
i) That in the preparation of the Annual Accounts for the financial
year 31st March, 2010, the applicable accounting standards have been
followed alongwith proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
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 or loss of the Company for the year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the Accounts for the financial
year ended 31st March, 2010 on a going concern basis.
I. LISTING OF SHARES
The companys shares are listed on the Bombay Stock Exchange and the
Company has paid the listing fees for the same.
J. CORPORATE GOVERNANCE
A separate section on Corporate Governance is included in the Annual
Report and the Certificate from the Practising Company Secretary
confirming the compliance of conditions on Corporate Governance as
stipulated in revised Clause 49 of the Listing Agreement with the Stock
Exchanges is annexed hereto.
K. AUDITORS
M/s. J. D. Zatakia & Co., Chartered Accountants retire at the
forthcoming Annual General Meeting and being eligible offer themselves
for re-appointment. The Company has received a certificate from them to
the effect that their re- appointment, if made would be within the
prescribed limits specified under Section 224(1B) of the Companies Act,
1956.
By Order of the Board of Directors
For SOVEREIGN DIAMONDS LIMITED
Registered Office :
11-A, Mahal Industrial Estate,
Mahakali Caves Road, Sd/-
Andheri (East), AJAY GEHANI
Mumbai - 400 093 MANAGING DIRECTOR
Place : Mumbai
Date : 29th July, 2010
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article