goenka diamond jewels ltd share price share price Management discussions

The company is promoted by Mr. Nandlal Goenka who has around 51 years of experience in the gems and jewellery business and his son, Mr. Navneet Goenka who is supremely qualified and has acquired professional qualifications in grading and jewellery designing from Gemological Institute of America, New York. The company has appointed Mr. Sanjeev Kumar Jain, as professional director who has experience of over more than 12 years in Diamond and expertise in color stones.

OVERVIEW

The company is in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery. The company was initially in the business of export of coloured stones and has since then expanded into diamond trade in 1994 and manufacturing of diamond studded jewellery in 2003.

Consistent supply of rough diamonds of desired quality, at a competitive price is one of the critical success factors of the companys business. The company supplies the polished diamonds primarily to wholesalers, jewellery manufacturers, traders and retailers based in India The company was in the export business in earlier years, however, the company has not been able to perform well during the recent past including the year under review.

INDUSTRY STRUCTURE AND DEVELOPMENTS

India is deemed to be the hub of the global Jewellery market because of its low costs and availability of high-skilled labour. India is the worlds largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. The Gems and Jewellery sector is witnessing changes in consumer preferences due to adoption of western lifestyle. Consumers are demanding new designs and varieties in jewellery, and branded jewellers are able to fulfil their changing demands better than the local unorganised players. Moreover, increase in per capita income has led to an increase in sales of jewellery, as jewellery is a status symbol in India.

SEGMENT WISE PERFORMANCE OF THE COMPANY

The company has two segments Diamond and Jewelley. Please refer to note no. 33 to Financial Statements for segment wise performance.

OUTLOOK

For financial year 2023-24 since the company is under supervision and monitoring of IRP appointed by honble NCLT as part of CIRP process the outlook can be concluded at the end of the process.

RISK AND CONCERNS

Being into CIRP process it is difficult to ascertain the risk and concerns as the process is not yet completed

FACTORS AFFECTING OUR OPERATIONS

The company is under CIRP process as a result entire operations are under control of IRP appointed by honble NCLT since December 2022, earlier the suspended board (erstwhile management) was looking after operations of the company.

• Internal Controls

As a part of CIRP process internal controls are in the hands of IRP since December 2022, earlier the suspended board (erstwhile management) was looking after internal controls of the company.

Cautionary Statement

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the government regulations, tax laws, statues and other incidental factors as applicable to the company.

Acknowledgement

Your Directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.

	On behalf of the Board of Directors For Goenka Diamond and Jewels Limited
Place: Mumbai Date: November 09, 2023	NANDLAL GOENKA Director of Suspended Board	NAVNEET GOENKA Director of Suspended Board