eidl project

AMITY INTERNATIONAL BUSINESS SCHOOL

EXPORT IMPORT DOCUMENTATION AND

LOGISTICS

REPORT ON GOENKA DIAMOND

AND JEWELS LTD

COMPANY INFORMATION

REGISTERED OFFICE

AddressNo.401, Panchratana, Moti Singhbhomiyon Ka Rasta,, Johari Bazar

City Jaipur

State Rajasthan

Pin Code302003

Tel. No.0141-2574175

Fax No.0141-2573305

Email:[email protected]

Internethttp://www.goenkadiamonds.com

REGISTRARS

Name Karvy Computershare Private Ltd.

Address Plot No. 17-24, Vital Rao Nagar, Madhapur,

City Hyderabad - 500081

State Andhra Pradesh

Tel. No.040-44655000

Fax No.040-44655814, 23420814

Email:[email protected]

Internethttp://www.karvy.com

MANAGEMENT

Name Designation

Nadlal GoenkaChairman

Navneet GoenkaVice Chairman & Mng.Director

Nitin GoenkaManaging Director

Vijay KalantriIndependent Director

D R MehtaAdditional Director

TABLE OF CONTENTS:

1. Introduction2. Mission3. Strength4. Corporate Social Responsibility5. Business6. Diamond7. Sourcing And Assortment8. Processing And manufacturing9. Wholesale10.Jewelry11.Balance Sheet12.Profit And Loss13.Quarterly Results14.Cash Flow Statement15.Financial Ratios16.Shareholding Pattern17.Peer Comparison18.Commercial Invoice19.Letter Of Credit20.Bill Of Laddin21.Packaging list22.Bill Of Exchange23.Certificate OF Origin And Inspect

We are in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery. We were initially in the business of export of colored stones and have since then expanded into diamond trade in 1994 and manufacturing of diamond studded jewellery in 2003. Our cutting and polishing activity was boosted in 2006 by having establishing our own diamond processing unit at SEZ in Surat for processing of rough diamonds. In 2007, we set up another facility for processing of rough diamonds in Mumbai to cater to the local market and for our jewellery making operations. We scaled up our diamond jewellery making operations by establishing a dedicated manufacturing facility in Mumbai and launched our first jewellery retail store in July 2008.

Our Company is promoted by Mr. Nand Lal Goenka, the creative entrepreneur, who is the brain behind the company, with over 40 years of experience in the gems and jewellery business along with his sons, Mr. Navneet Goenka and Mr. Nitin Goenka. Consistent supply of rough diamonds of desired quality, at a competitive price is one of the critical success factors of our business. We source rough diamonds from a variety of suppliers in Hong Kong, USA, Russia and the local Indian market. We have acquired 95% stake in M. B. Diamonds, a LLC registered in Russia in March 2008 to enable us to import high quality and competitively priced rough and semi-processed diamonds from Russia. We supply the polished diamonds primarily to wholesalers, jewellery manufacturers, traders and retailers based out of Hong Kong, South East Asia, USA, India and other countries. We retail our diamond jewellery under two brands viz. CERES and G WILD catering to specific segments. We retail high end diamond jewellery under the CERES brand targeting the top-end segment of the society while G WILD focuses on internationally designed diamond jewellery targeting the youth. Our product

profile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polished diamonds, precious and other semi-precious stones which are set in gold. Our in-house teams along with some select freelance designers undertake the designing of jewellery for our brands. We currently have presence in retail through 3 company operated G WILD stores, 1 store under franchisee and 1 shop-in-shop for G WILD.

We opened the first CERES store in Mumbai in April 2009. We also sell CERES branded jewelry through our corporate office to exclusive clients and business associates. We run an integrated business model that includes sourcing of rough diamonds from various sources including our Russian Subsidiary, polishing roughs for export market and internal consumption, jewelers manufacturing and sale of jewelers through our retail chain branded jewelry retail resulting in strong presence across the value chain. Going forward, we plan to strengthen our model by expanding our Russian sourcing operations and increasing our retail network.

MISSION

Our mission is to maintain and enhance our roles as a leading global Diamond and Jewelry business house, dealing in rough diamonds, polished diamonds and fine diamond jewelry. We aspire to continue our profitability while maintaining our personal touch.

Our mission is to maintain our position as one of the most important, leading suppliers of rough diamonds, polished loose diamonds and exquisite jewelry pieces to the diamond industry.

We value our relationships with our customers, suppliers and everyone we deal with. We strive to forge long lasting relationships that are based on mutual respect, consideration and fairness.

STRENGTH

Integrated player with presence across the value chain

We are an integrated company having presence across the various segments of the value chain. We source roughs from a variety of suppliers including our Subsidiary, process them for exports and also for manufacturing our branded jewellery. We retail the jewellery through our stores under our own brands. By having a strong presence across the value chain, we are able to minimize risk and optimize profitability of operations. Going forward, we plan to increase the integration as we expand the operations of our Russian Subsidiary and increase our retail network.

Promoters experience of over four decades in the Gems & Jewellery industry

We benefit from the experience of our Promoters and the core management team. Our Promoters have been in the business of gems and jewellery for over four decades and have built immense experience and strong relationships with both suppliers and customers in the industry. Our founder, Mr. Nand Lal Goenka entered this business in 1969 and has established strong contacts with both international and domestic customers. Mr. Navneet Goenka and Mr. Nitin Goenka have a combined experience of over 21 years in the diamond business.

Our core strength lies in the extensive knowledge of our core management team which helps us execute our growth strategies. Most of our key managerial personnel have substantial experience in the gems and jewellery industry. We believe that having a strong management team with extensive experience enables us to respond to changing market conditions and evolving

preferences of our customers and is essential to our overall success and our future growth.

Expertise in processing larger sized stones

Our focus has been on technological skill in processing of large size (high carat) diamonds which provides higher margins. India‘s major contribution has been in processing smaller sized diamonds while larger stones processed in countries like Belgium, Israel, etc. Over the years, we believe that we have built the required expertise in this area, which differentiates us and gives us an edge over most of our Indian competitors.

Strong designing and production capabilities with modern equipment’s

We have an extensive design bank which allows us to manufacture a variety of jewellery as per requirements. We have an in-house design team besides some select freelance designers for designing jewellery in line with the latest trends and customer preferences in the least possible time-frame. We use the advanced technology and equipment in our manufacturing facilities to enable us to process the rough diamonds in the most efficient and optimal manner and allow us to design the highest quality jewellery. We have been certified as an ISO 9001:2000 company which stands for product quality assurance system. Further, majority of the diamonds used in CERES jewellery are certified by Gemological Institute of America (GIA), a globally renowned certification institutes.

Well diversified customer base

In the last few years, we have diversified our export client base and have entered new markets for our export business. Our main countries for exports include US, South East Asia, and Hong Kong. Our focus on untapped markets for export of polished diamonds. This allowed us to earn higher margins due

to our early mover advantage. Our second largest market, Hong Kong primarily acts as hub for re-export to other countries. We have significantly increased our focus on the South East Asian region which emerged as our biggest market in Fiscal 2009.

Further, we have increased sales to the local Indian market which accounts for more than 10% of our diamond segment sales in Fiscal 2009 from Nil in Fiscal 2007. Thus we are less dependent on the vagaries of a single economy. We were able to increase our Diamond Business segment sales by 110.10% in Fiscal 2009 over Fiscal 2008.For the same period, the exports of cut and polished diamonds by the Indian diamond industry rose by 2.68% in rupee terms.

CORPORATE SOCIAL RESPONSIBILITY

Goenka charitable trust

The Goenka Charitable Trust is an organization dedicated to serve the needy, destitute and the under privileged sections of the society. Founded by Shri. Nand Lal Goenka in the year 2007, the Trust aims to educate the poor artisans, farmers, rural weavers, unemployed youths and women of the state of Rajasthan.

The founder Shri. Nand Lal Goenka who hails from Laxmangarh (Rajasthan) always had a great love for the arts & crafts of Rajasthan. He truly admired the dedication and craftsmanship of these artisans of Rajasthan. Seeing the growth of the global markets in the current times, it dawned upon him that the rural artisans needed to be educated if they were to benefit from the growing economy. The Arts and Crafts of Rajasthan are unique and only needed support from the international level traders who have their sound marketing networking all over the world.

Goenka Charitable Trust runs educational institutions in the state of Rajasthan which gives exposure to the rural youth about the world economy and modern techniques in the field of marketing, entrepreneurship and management. This education has ensured a better and sustainable livelihood for them.

BUSINESS

Our business consists of two business segments:

1. Diamond Processing business: Trading, cutting and polishing of diamonds

2. Jewellery Business: Manufacture and retail of diamond jewellery

Out of total sales of Rs. 57,192.76 lakhs in the Fiscal 2012, diamond processing business accounted for 74.86% and Jewellery Business accounted for 25.14%. Over the same period, diamond processing business accounted for 71.52 % of total operating profits while jewellery business accounted for 28.48 % of our total operating profits. The diamond processing business accounts for majority of our sales.

DIAMOND

We cater to both the export market and the local market under this business segment. We buy rough diamonds from diamond traders and wholesalers, polish and process the rough diamonds at our manufacturing facilities and then sell the processed diamonds to wholesalers, jewellery manufacturers, traders and retailers. We process the diamonds in Surat for the export market and the Mumbai facility for the local market. In the last two years, our trading business - involving buying of rough and/or semi-polished diamonds from one party and selling them to another party without any processing, has reduced and now accounts for a nominal percentage of our total diamond business. Historically, we were primarily in the business of trading but after setting up our manufacturing facility in 2006 we have reduced our trading activities.

We primarily process higher carat rough diamonds which lead to a higher realization per carat. Due to the skills and technology required, most of the processing of larger sized stones is undertaken in countries like Belgium and Israel. Having mastered the requisite expertise, we have shifted to processing larger sized stones over the years. A higher realization per carat leads to higher operating margins.

SOURCING AND ASSORTMENT

We source our rough diamond requirements from a dedicated group of diamond traders and wholesalers. We have strong relationship with our suppliers and are able to procure good quality rough diamonds at competitive rates. The suppliers are strategically located and have good relationships with the major miners. Over the years, we have diversified our supplier base and reduced our dependence on a few suppliers. Our top 5 suppliers account for 75.26% of our purchases in Fiscal 2009 vis-à-vis 92.98% in Fiscal 2007. We source diamonds from countries like US, Hong Kong, Russia and also source from the local market. Over the years we have reduced supplies from the US market from 62.0% in Fiscal 2007 to 30.5% in Fiscal 2009. Further sourcing from the domestic market has increased from 1.7% in Fiscal 2007 to 36.8% in Fiscal 2009 as we have expanded our jewellery manufacturing operations. We primarily purchase small sized processed diamonds from the local market for our jewellery making operations. The larger sized stones used for jewellery manufacturing are imported in the rough form.

Arrangement with own subsidiary

As part of our strategy to source raw materials from low cost locations, we plan to increase our sourcing from Russia. Our Subsidiary shall be one of our sources for procuring rough and semi-processed stones. As per IMaCS, Russia is the largest producer of rough diamonds (by volume) and the second largest producer by value in 2007. As per Russian Government policies, only locally incorporated firms are allowed to participate in domestic auctions of rough diamonds. Almost all the domestic production is undertaken by a state owned company, Alrosa. The rates for roughs in these auctions are generally lower than market prices. We have setup a processing facility through our Subsidiary to process the rough diamonds. Despite higher processing costs in Russia, we are able to purchase the raw-material at lower costs through our Subsidiary as compared to purchasing directly from market.

PROCESSING AND MANUFACTURING

The facility is situated in a SEZ which provides tax benefits and its location allows it access to highly skilled workers admeasuring 25,000 square feet in Special Economic Zone at Sachin. The processing of rough and semi-processed stones is carried out at this facility. The facility has polishing machines, sarin machine, auto brutters and laser machine. The installed capacity of the unit is 60,000 carats per annum. However, given our focus on processing large sized stones, the absolute amount of carat processed might not reflect the true picture. The total revenues generated by the facility increased from Rs. 14,432.77 lakhs in Fiscal 2008 to Rs. 29,292.79 lakhs in Fiscal 2009, an increase of 102.96%. The revenue generated per carat has increased from Rs. 44,582 in Fiscal 2008 to 76,306 in Fiscal 2009.

Our diamond processing facility in Mumbai also processes diamonds for domestic sales besides providing polished diamonds for the jewellery making. The Mumbai facility produced 14,287 carats in Fiscal 2009 vis-à-vis 4,158 carat in Fiscal 2008.Our Russia Subsidiary also has a manufacturing facility where we process some of the rough diamonds procured from the local auctions. The facility has polishing machines, sarin machine, auto brutters and laser machine.

Manufacturing

We currently have two units in Mumbai for jewellery manufacturing and diamond processing. One of the units is dedicated towards processing rough diamonds which are used as raw materials for the jewellery making besides sale to the local market. The unit primarily processes larger sized diamonds. The second unit manufactures diamond jewellery. The diamond processing unit has polishing machines, sarin machine, auto brutters and laser machine. All process of jewellery making from designing of pieces to final finishing is done in-house.

Design:

We have an extensive design bank and use software such as Jewel CAD & Rhinoceros for designing. The internal design team of our Company is headed by Ms. Maheep Kapoor, a designer of international repute. Besides our internal design team we also employ select freelance designers. The designs are selected by a 4 member committee according to the market trends and season.

WHOLESALE

We sell processed diamonds to a regular set of customers which include jewellery manufacturers, traders & wholesalers and retailers. Of these, jewellery manufacturers account for a largest portion of our sales. We have built a strong relationship with our customers and major portion of our sales are repeat orders. Over the years, we have reduced our dependence on our top customer by building strong relations with a number of other customers.

Table 3: Top customers as % of Diamond Processing segment sales

Customer

Fiscal 2007

Fiscal 2007 Fiscal 2008 Fiscal 2009

Top customer 28.80% 30.30% 16.70%

Top 3 customers 49.00% 65.60% 48.30%

Top 5 customers 50.40% 68.30% 74.10%

We export processed diamonds to countries like Hong Kong, South East Asia, USA and India. Over the years, we have reduced our export dependence on the US in light of the fall in demand and worsening credit terms. US accounted for 66.6% of sales in Fiscal 2007 vis-à-vis 15.5% in Fiscal 2009. South East Asia has emerged as a major market for our exports with sales of Rs. 15,902 lakhs in Fiscal 2009 (Nil in Fiscal 2008).The region is largely untapped and besides having a strong local demand, it also serves as a base for reexports to other countries

JEWELLERY

We manufacture diamond jewellery and retail it under our two brands – G WILD and CERES.

Goenka Diamond and Jewels Limited, has launched G WILD, a trendy and stylish collection for the youth, available at select stores across India.The G WILD range is a stunning collection of diamond jewellery with internationally designed necklaces, bracelets, earrings and rings. This collection is perfect fusion of classic jewellery with contemporary designs; a subtle blend of timeless elegance with style specially aiming to cater to today's youth.What's more, the unconventional styles and delicate designs are extremely eye-catching and a perfect way to stand-out in the crowd! Tomorrow's design for Today's customers!

G WILD has been specially designed keeping in mind the modern woman. The designs are contemporary and the best quality diamonds have been used. This collection is perfect for all occasions whether it is a formal business meeting or cocktail party.

The G WILD collection comes with an assurance of quality par excellence and a Certificate of Authenticity is given on the purchase of any jewellery.

Ceres is an exquisite, artistic high-end designer collection crafted to perfection with the most rare & internationally certified diamonds and other stones. It is truly is an extension of the Goenka family's passion for fabulous jewellery.

Ceres, the most fabulous jewels of the world, as the name suggests, is on par with Graff & Harry Winston when comes to quality. The distinguishing feature of Ceres Jewellery is that each piece is lavishly crafted and beautifully carved in a way to create 'The Antiques of the future'. Expanding the business operations and manufacturing units, to the US, Russia, Malaysia and Hong Kong, GDJL intends to launch Ceres globally by opening luxury jewelry salons in London, New York, Paris and Milan.

Balance Sheet of Goenka Diamond and Jewels

------------------- in Rs. Cr. -------------------

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

12 mths 12 mths 12 mths 12 mths 12mnths

Sources Of Funds

Total Share Capital 31.70 31.70 22.33 11.91 11.91

Equity Share Capita 31.70 31.70 22.33 11.91 11.91

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 250.71 233.60 85.48 58.42 31.16

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net worth 282.41 265.30 107.81 70.33 43.07

Secured Loans 117.07 75.66 64.33 51.66 21.60

Unsecured Loans 0.00 0.00 0.00 0.01 0.06

Total Debt 117.07 75.66 64.33 51.67 21.66

Total Liabilities 399.48 340.96 172.14 122.00 64.73


12 mths 12 mths 12 mths 12 mths 12 mths

Application of Funds

Gross Block 14.12 13.07 11.84 11.07 6.56

Less: Accum. Depreciation 6.77 5.57 4.27 3.21 2.69

Net Block 7.35 7.50 7.57 7.86 3.87

Capital Work in Progress 6.68 5.84 0.12 0.03 0.85

Investments 0.59 24.79 0.02 0.02 0.02

Inventories 143.44 136.31 77.94 55.56 12.72

Sundry Debtors 311.01 298.25 294.23 246.49 95.60

Cash and Bank Balance 22.37 4.06 4.90 6.33 1.85

Total Current Assets 476.82 438.62 377.07 308.38 110.17

Loans and Advances 20.00 9.67 4.11 2.81 1.32

Fixed Deposits 0.00 3.42 1.56 1.31 0.00

Total CA, Loans & Advance 496.82 451.71 382.74 312.50 111.49

Deferred Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 106.22 143.55 216.33 197.31 51.49

Provisions 5.75 5.33 5.18 1.09 0.00

Total CL & Provisions 111.97 148.88 221.51 198.40 51.49

Net Current Assets 384.85 302.83 161.23 114.10 60.00

Miscellaneous Expenses 0.00 0.00 3.19 0.00 0.00

Total Assets 399.47 340.96 172.13 122.01 64.74

Contingent Liabilities 7.48 8.09 7.27 7.27 7.28

Book Value (Rs) 89.09 83.69 48.28 u59.06 36.17

Profit & Loss account of Goenka Diamond and Jewels

------------------- in Rs. Cr. -------------------


12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 515.71 560.99 536.84 443.77 200.56

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 515.71 560.99 536.84 443.77 200.56

Other Income 25.49 -2.21 -0.89 7.44 -2.00

Stock Adjustments -12.13 26.65 2.32 26.80 0.00

Total Income 529.07 585.43 538.27 478.01 198.56

Expenditure

Raw Materials 484.19 522.21 480.53 440.52 0.00

Power & Fuel Cost 0.04 0.06 0.05 0.05 0.00

Employee Cost 2.98 5.51 2.39 1.58 0.91

Other Manufacturing Expenses0.68 0.30 0.13 0.28 181.07

Selling and Admin Expense 0.00 3.52 4.23 1.91 0.00

Miscellaneous Expenses 7.51 1.18 1.03 0.47 1.51

Preoperative Exp Capitalized 0.00 0.00 0.00 0.00 0.00

Total Expenses 495.40 532.78 488.36 444.81 183.49


12 mnths 12 mnths 12 mnths 12mnths 12mnths

Operating Profit 8.18 54.86 50.80 25.76 17.07

PBDIT 33.67 52.65 49.91 33.20 15.07

Interest 8.85 7.93 5.65 4.00 2.16

PBDT 24.82 44.72 44.26 29.20 12.91

Depreciation 1.29 1.30 1.05 0.56 0.34

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit before Tax 23.53 43.42 43.21 28.64 12.57

Extra-ordinary items -0.04 0.01 0.26 0.01 -0.01

PBT (Post Extra-ord Items) 23.49 43.43 43.47 28.65 12.56

Tax 2.70 0.47 2.27 1.29 0.16

Reported Net Profit 20.79 42.96 41.18 27.38 12.40

Total Value Addition 11.21 10.56 7.83 4.28 183.49

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 3.17 3.17 3.17 0.12 0.12

Corporate Dividend Tax 0.51 0.51 0.54 0.02 0.02

Per share data (annualized)

Shares in issue (lakhs). 317.00 317.00 223.29 119.09 119.09

Earnings per Share (Rs) 6.56 13.55 18.44 22.99 10.41

Equity Dividend (%) 10.00 10.00 10.00 1.00 1.00

Book Value (Rs) 89.09 83.69 48.28 59.06 36.17

.

Quarterly Results of Goenka Diamond and Jewels

------------------- In Rs. Cr. -------------------

Dec '12 Sep '12 Jun '12 Mar '12 Sep '11

Sales Turnover 163.72 125.16 122.82 164.62 136.10

Other Income 2.42 1.60 9.74 0.80 0.70

Total Income 166.14 126.77 132.55 165.45 136.80

Total Expenses 156.92 114.61 118.61 169.02 119.22

Operating Profit 6.80 10.55 4.21 -4.40 16.88

Profit on Sale of Assets -- -- -- -- --

Profit on Sale of Investments -- -- -- -- --

Gain/Loss on Foreign Exchange -- -- -- -- --

VRS Adjustment -- -- -- -- --

Other Extraordinary Income/Expenses-- -- -- -- --

Total Extraordinary Income/Expenses-- -- -- 7.68 --

Tax on Extraordinary Items -- -- -- -- --

Net Extra Ordinary Income/Expenses-- -- -- -- --

Gross Profit 9.22 12.15 13.95 -3.57 17.58

Interest 2.69 2.41 2.24 2.35 2.88

PBDT 6.53 9.74 11.71 1.76 14.71

Depreciation 0.25 0.24 0.24 0.37 0.32

Depreciation on Revaluation of Assets-- -- -- -- --

PBT 6.28 9.50 11.47 1.39 14.39

Tax 1.22 1.98 1.99 -1.41 2.67

Net Profit 5.06 7.52 9.48 2.80 11.72

Prior Years Income/Expenses -- -- -- -- --

Depreciation for Previous Years Written Back/ Provided -- -- -- ----

Dividend -- -- -- -- --

Dividend Tax -- -- -- -- --

Dividend (%) -- -- -- -- --

Earnings per Share 0.16 0.24 2.99 0.88 3.70

Book Value -- -- -- -- --

Equity 31.70 31.70 31.70. 31.70 31.70

Reserves -- -- -- -- --

Face Value 1.00 1.00 10.00 10.00 10.00

Cash Flow of Goenka Diamond and Jewels

Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mnths

Net Profit before Tax 23.53 43.42 43.43 28.65

Net Cash from Operating Activity -44.06 -91.69 -4.10 -14.14

Net Cash (used in)/from

Investing Activities 13.68 -30.28 -0.75 -3.63

Net Cash (used in)/from

Financing Activities 33.83 121.13 3.68 23.56

Net (decrease)/increase

In Cash and Cash Equivalents 3.46 -0.84 -1.17 5.78

Opening Cash & Cash Equivalents 4.18 4.90 7.63 1.85

Closing Cash & Cash Equivalents 7.63 4.06 6.46 7.63

Key Financial Ratios of Goenka Diamond and Jewels

Mar '12 Mar '11 Mar '10 Mar’09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00

Dividend per Share 1.00 1.00 1.00 0.10

Operating Profit per Share (Rs) 2.58 17.31 22.75 21.64

Net Operating Profit per Share (Rs) 162.68 176.97 240.4 372.64

Free Reserves per Share (Rs) -- 73.69 36.85 49.06

Bonus in Equity Capital 70.24 70.24 99.72 99.47

Profitability Ratios

Operating Profit Margin (%) 1.58 9.78 9.46 5.80

Profit before Interest and Tax Margin (%) 1.27 9.54 9.26 5.67

Gross Profit Margin (%) 1.33 9.54 9.26 5.67

Cash Profit Margin (%) 4.08 8.30 8.00 4.68

Adjusted Cash Margin (%) 4.08 8.30 8.00 4.68

Net Profit Margin (%) 3.84 7.65 7.66 6.16

Adjusted Net Profit Margin (%) 3.84 7.65 7.66 6.16

Return on Capital Employed (%) 8.10 15.75 28.96 20.90

Return on Net Worth (%) 7.36 16.19 39.36 38.92

Adjusted Return on Net Worth (%) 7.37 17.07 40.08 28.75

Return on Assets Excluding Revaluations 89.09 83.69 46.85 59.06

Return on Assets Including Revaluations 89.09 83.69 46.85 59.06

Return on Long Term Funds (%) 11.46 20.24 46.25 36.25

Liquidity and Solvency Ratios

Current Ratio 1.44 1.50 1.09 1.04

Quick Ratio 3.15 2.12 1.38 1.29

Debt Equity Ratio 0.41 0.29 0.60 0.73

Long Term Debt Equity Ratio -- -- -- --

Debt Coverage Ratios

Interest Cover 3.66 8.08 11.11 8.70

Total Debt to Owners Fund 0.41 0.29 0.60 0.73

Financial Charges Coverage Ratio 3.80 6.93 9.00 6.52

Financial Charges Coverage Ratio Post Tax3.49 6.58 8.47 7.99

Management Efficiency Ratios

Inventory Turnover Ratio 3.60 4.12 6.89 7.99

Debtors Turnover Ratio 1.69 1.89 1.99 2.59

Investments Turnover Ratio 3.60 4.12 6.89 7.99

Fixed Assets Turnover Ratio 36.74 42.93 45.65 40.37

Total Assets Turnover Ratio 1.29 1.65 3.12 3.64

Asset Turnover Ratio 1.39 2.19 3.65 40.37

Average Raw Material Holding -- 52.21 32.45 18.44

Average Finished Goods Held -- 39.45 25.39 28.38

Number of Days in Working Capital 268.65 194.33 108.12 92.55

Profit & Loss Account Ratios

Material Cost Composition 93.88 93.08 89.51 99.26

Imported Composition of Raw Materials Consumed

65.74 58.97 64.98 63.88

Selling Distribution Cost Composition -- 0.17 0.32 0.17

Expenses as Composition of Total Sales 65.24 64.03 66.04 68.80

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 17.72 8.57 9.00 0.50

Dividend Payout Ratio Cash Profit 16.68 8.32 8.78 0.49

Earning Retention Ratio 82.32 91.87 91.16 99.32

Cash Earning Retention Ratio 83.35 92.10 91.38 99.33

Adjustedcash Flow Times 5.29 1.62 1.50 2.49


Earnings per Share 6.56 13.55 18.44 22.99 10.41

Book Value 89.09 83.69 48.28 59.06 36.17

SHAREHOLDING PATTERN

Holder's Name No of Shares % Share Holding

Promoters 229396900 72.36%

Other Companies 49394288 15.58%

General Public 20933565 6.60%

Foreign Institutions 16769319 5.29%

Others 287611 0.09%

Foreign NRI 145367 0.05%

Financial Institutions 72950 0.02%

PEER COMPARISON

Market Cap Price Net Sales Net Profit Total Assets Price Performance

COMPANY NAME LAST PRICE %

CHANGE 52 WK

HIGH 52 WK

LOW MARKET CAP

Gitanjali Gems 568.45 -0.61 614.05 300.35 5,233.46

Rajesh Exports 119.05 0.17 150.35 115.25 3,515.07

PC Jeweler. 139.20 -0.71 194.90 118.05 2,493.07

Tribhovandas 188.85 -2.55 301.00 88.00 1,259.00

Asian Star 700.00 0.00 1290.00 571.00 1,120.48

Capital Structure (Goenka Diamond and Jewels)

Period Instrument Authorized Capital Issued Capital - P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (no’s) Face Value Capital

2011 2012 Equity Share 33 31.7 31700000 10 31.7

2010 2011 Equity Share 33 31.7 31700000 10 31.7

2009 2010 Equity Share 33 22.33 22329000 10 22.33

2008 2009 Equity Share 33 11.91 11908800 10 11.91