devine impex ltd share price Management discussions

D INDUSTRY STRUCTURE & DEVELOPMENT:

Indias gems and jewellery sector is one of the largest in the world contributing 29 per cent to the global jewellery consumption. The market size of the sector is about US$ 75 billion as of 2018 and is estimated to reach US$ 100 billion by 2025. The sector is home to more than 300,000 gems and jewellery players, contributes about 7 per cent to Indias Gross Domestic Product (GDP) and employs over 4.64 million employees.

am OPPORTUNITIES, THREATS AND RISKS:

In the coming years, growth in Gems and Jewellery sector would be largely contributed by the development of large retailers/brands. Established brands are guiding the organised market and are opening opportunities to grow. Increasing penetration of organised players provides variety in terms of products and designs. Online sales are expected to account for 12 per cent of the fine jewellery segment by 202223. Also, the relaxation of restrictions of gold import is likely to provide a fillip to the industry. The improvement in availability along with the reintroduction of low cost gold metal loans and likely stabilisation of gold prices at lower levels is expected to drive volume growth for jewellers over short to medium term. The demand for jewellery is expected to be significantly supported by the recent positive developments in the industry.

But of lately there are few policies which have been introduced by the government because of which this sector was felt some unrest. Besides this, the rise in inflation has shrunk the purchasing power of the consumer. The political uncertainty has also shown its adverse impact on the industry.

III) OUTLOOK:

India is the largest consumer of gold in the world. Rising middle class population and increasing income levels are the key drivers for the demand of gold and other jewellery in India. Gold demand in India rose 11 per cent yearonyear to 760.40 tonnes during JanuaryDecember 2018. Also, the Government of India has permitted 100 per cent Foreign Direct Investment (FDI) in the sector under the automatic route. The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January 2018, to include a BIS mark, purity in carat and fitness as well as the units identification and the jewellers identification mark on gold jewellery. The move is aimed at ensuring a quality check on gold jewellery.

Vv) INTERNAL CONTROL SYSTEM:

The company has effective and adequate internal control system. All the assets of the Company are properly safeguarded and used to their optimum capacity. The system is reviewed and updated by the management periodically. The finding and suggestions of internal control are reviewed by the Board of Directors & Audit Committee and they make sure that internal controls are properly complied with.

(VI) HUMAN RESOURCES AND INDUSTRIAL RELATION:

The company is maintaining very cordially relations with all concerned people. With the change in management, new faces have been inducted in the company. Recruitments have been done as per the requirement. The relations with banks and other statutory departments are also very cordial. wv) OTHER KEY INDICATORS

Ratios	20222023	20212022	%_Increase/ (Decrease)
Debtors Turnover Ratio	1.45	1.29	12.40%
Inventory Turnover	0.14	0.17	(17.65%
Interest Coverage Ratio	N.A.	N.A.	N.A.
Current Ratio	251.97	150.37	67.56%
Debt Equity Ratio	N.A.	N.A.	N.A.
Operating Profit Margin %	11.94	9.04	32.08%
Net Profit Margin (%)	2.80	1.13	148.67%
Change in Net Worth Ratio
(%)	0.37	0.16	131.25%

 

Date: 11.08.2023
Place: Mohali
	For and On behalf of	the Board of Directors
	Devine Impex Limited
	Sd/	Sd/
	Neeraj Jain	Rohit Jain
	Managing Director	Director & CFO
	DIN: 01132916	DIN: 01132870