AKM Creations Ltd Management Discussions

Overview

Your Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31^st March, 2024.

Our Company was originally incorporated on 26th November, 2009 as a private limited company under the provisions of the Companies Act, 1956 as “AKM Lace and Embrotex Private Limited”. On 04th May, 2017 our company was converted into a public limited company and is called “AKM Lace and Embrotex Limited”. On 29th September, 2017, our company was listed on the BSE SME platform through an Initial Public Offering (IPO). It has listed its equity shares on the BSE SME platform.

The main business of the Company is trading in textile products primarily fabrics. We act as an intermediary between buyer and seller buying goods on cash basis and providing credit to cash-strapped businessmen in this field.

Industry Structure & Development

Global Jewellery Industry The global jewellery market is expected to witness substantial growth. This growth is primarily driven by evolving consumer preferences towards distinctive jewellery styles, including oversized hoops and geometric shapes like rectangles, spheres, and squares. The rising popularity of personalised and environmentally sustainable jewellery further fuels this trend. The global gold jewellery market will grow during the forecasted period due to rising GDP per capita, increasing consumer disposable income, and the appeal of gold as a long-term investment.

Indian Gold Business:

Overview Indias formidable position as the second-largest gold market, where an impressive 70% of the demand is attributed to exquisite Jewellery, underscores the immense growth opportunities awaiting the organized retail segment. It is also the third-highest component of retail consumption in India. Moreover, gold Jewellery demand has experienced a steady and consistent upward trend for several reasons. Firstly, most of the demand can be attributed to weddings, where gold holds great cultural and sentimental value. As weddings remain an integral part of many societies, the demand for gold Jewellery continues to rise. Secondly, gold is considered a reliable store of value, especially in times of economic uncertainty, making it an attractive investment option for individuals. The growth in disposable income across various regions has also played a crucial role in boosting demand, as people have more financial capacity to invest in gold Jewellery. Thirdly, gold Jewellery holds strong linkages to traditions and customs, further driving its popularity. Lastly, evolving fashion trends and styles have increased the demand for gold Jewellery as consumers seek innovative and contemporary designs. The jewellery market in India is a sizeable and attractive industry, propelled by several favourable factors. These include shifting customer behaviours, superior organizational capabilities, and supportive regulatory and legislative changes. These combined elements create significant tailwinds for the growth and prosperity of the Jewellery sector in India.

Opportunities and Threats

The market for organised jewellery retailing in India is projected to grow at 14%. AKM Creations Limited intends to aggressively foray into the non-South Indian markets and Middle Eastern countries by unveiling capital-efficient franchised showrooms to enhance the profile of the business. AKM Creations Limited will utilize omnichannel retailing to improve customer conversion rates and drive revenue growth. AKM Creations Limited will employ analytics for driving customer footfall and engagement.

Volatile gold prices impact consumer demand, resulting in short-term fluctuations, which can get pushed to the succeeding quarters. Disrupted retail operations due to the pandemic, among others.

Risk and Concerns

The rapid growth of Indian e-commerce has profoundly impacted various industries, including the gold jewellery sector. Traditionally, Indians have purchased their favourite gold jewellery items, such as necklaces, bangles, earrings, and more, from local jewellery shops. However, the landscape is evolving. This shift reflects the changing preferences and convenience-seeking behaviour of Indian consumers in the digital age.

Adequacy of Internal Control System

To provide reasonable assurance that assets are safeguarded against loss or damage and that accounting records are reliable for preparing financial statements, management maintains a system of accounting and controls including an internal audit process. Internal controls are supported by management reviews.

The Board of Directors have an Audit Committee that is chaired by an Independent Director. The Committee meets periodically with Management, Internal Auditor, Statutory Auditors to review the Companys p rogram of internal controls, audit p lans and results, recommendations of the auditors and managements responses to those recommendations.

Human Resources Development/Industrial Relations

Human resources are valuable assets for any organization. The employees of the Company have extended a very productive cooperation in the efforts of the management to carrying the Company to greater heights. The Company is giving emphasis to upgrade the skills of its human resources and continuous training down the line is a normal feature in the Company to upgrade the skills and knowledge of the employees of the Company.

Cautionary Statement

The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be “Forward looking Statements” within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied

For & on behalf of the Board AKM Creations Limited

Sd/-	Sd/
Maulik Rajendrabhai Shah	Piyush Parmar
Managing Director	Director
DIN: 07578813	DIN: 09634827
Date: 07.06.2024	Date: 07.06.2024
Place: Delhi	Place: Delhi