Overview
The Directors are pleased to present the Management Discussion and Analysis Report for the year ended 31st March, 2025.
The Company was originally incorporated as AKM Lace and Embrotex Private Limited on 26th November, 2009 under the provisions of the Companies Act, 1956. Subsequently, the Company was converted into a public limited company on 4th May, 2017, and its name was changed to AKM Lace and Embrotex Limited. Thereafter, the Company made its debut on the capital markets through an Initial Public Offering (IPO) and got listed on the BSE SME Platform on 29th September, 2017. Over time, in line with its evolving business objectives and branding strategy, the name of the Company has been changed to Aayush Art and Bullion Limited, under which it presently operates and is listed.
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%.
Aayush Art And Bullion 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.
AAYUSH ART AND BULLION LIMITED will utilize omnichannel retailing to improve customer conversion rates and drive revenue growth.
AAYUSH ART AND BULLION 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 reviewthe Companys program of internal controls, audit plans 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 and on behalf of | ||
AAYUSH ART AND BULLION LIMITED | ||
(Formerly known as AKM Creations Limited) | ||
Date: 04-09-2025 | Sd/- | Sd/- |
Place: Delhi | Maulik Rajendrabhai Shah | Piyush Parmar |
Managing Director | Director | |
DIN: 07578813 | DIN: 09634827 |
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