kanani industries ltd Management discussions

ANNEXURE - I

DIAMOND INDUSTRY LEADERS DISCUSS WAYS TO FOSTER ECONOMIC GROWTH AT B20 SUMMIT IN SURAT:

The Business 20 (B20) Surat Meet, the official G20 dialogue forum with the global business community, took place in Surat, India on 1st July, 2023. The event was organised by the Confederation of Indian Industry (CII), with Shree Ramkrishna Exports Pvt. Ltd. (SRK) as the supporting partner.

The B20 India 2023 dialogue, held under the theme of ‘RAISE (Responsible, Accelerated, Innovative, Sustainable & Equitable Businesses), brought together approximately 200 delegates from G20 countries representing various sectors, including diamond, textiles, finance, and banking industries. The event provided an opportunity for business leaders to share their insights and policy recommendations on various economic topics.

The keynote speakers at the event included Union Cabinet Minister of Ports, Shipping and Waterways & Ministry of Ayush Shri Sarbananda Sonowal and State Minister of State for Home, Industries, Transport, Youth, Sports Shri Harsh Sanghavi. Other dignitaries included Nippon Life India Asset Management Ltd. CEO Sundeep Sikka, Tata Chemicals Executive Director Zarir Langrana, SRK Brand Custodian Shreyans Dholakia, Natural Diamond Council MD Richa Singh, GIA Executive VP Tom Moses, Edelweiss Financial Services Ltd. MD Gopal Agrawal.

During his inaugural keynote speech, Shreyans Dholakia remarked, "We have gathered here to acknowledge and to embrace the spirit of internationalism and recognise that we are indeed global citizens. Today, our company SRK stands as a testament to the power of embracing this interconnectedness. We have successfully fostered strong trade relations with 80+ countries across the globe."

One of the highlights of the event was the Round Table Discussion on the ‘Future of Diamond Industry in India in 2030. This session brought together key stakeholders to explore and address the significant issues that will shape the trajectory of the diamond industry in India over the next decade. The outcomes of the discussion will contribute to recommendations and strategies that will shape the future of the diamond industry in India and beyond.

Shreyans Dholakia added, "Amongst the segments, luxury growth will continue to be a sweet spot. Surat will keep contributing to Indias global export adding values to its products with environmental and climate protection being the very core to the existence and continuity of human civilization."

During the B20 meet, the delegates had the opportunity to visit the Diamond Research and Mercantile City (DREAM City), an upcoming business district in Surat. They also toured Shree Ramkrishna Exports diamond crafting facility, SRK Empire, which is recognised as one of the highest-ranking "green" buildings globally.

The B20 Summit in Surat provided a platform for industry leaders to collaborate, exchange ideas, and foster economic growth while promoting sustainable practices in the diamond industry. With the events successful conclusion, the focus now shifts to implementing the recommendations and strategies formulated during the discussions, ensuring a brighter future for the diamond industry in India and beyond.

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Company is a part of an Industry, which largely operates through unorganized constituents. However, unlike the industry, the Company has attempted to operate through as systematic and organized manner as possible. However, since Diamonds and Jewellery is one industry, in which India holds, commendable position in the world, akin to the software industry, one can look forward to more international involvement coming up in this industry.

OPPORTUNITIES AND THREATS:

Following can be termed as the opportunities / strengths of the Company:

- Induction of widely experienced and specialized personnel on the Board.

- Good combination of technical as well as advisory personnel in the management.

- Some of the world retail majors have decided sometime back to source part of their requirements from India. This shall further the growth of the Diamond industry in India.

- The unfavorable government policies cut throat competition amongst manufacturers and exporters remains major concerns for the Gems and Jewellery Business.

OUTLOOK

Growth of the Gems and Jewellery Industry is expected to be moderate to better in the years to come depending on the policies of the Government. However Gems and Jewellery Industry is seeing robust growth in the years to come. The Growth rate of the Gems and Jewellery Industry is closely related to the growth of the other Sector and hence movements and developments in the other sectors would also indirectly affect the future of Gems and Jewellery Industry.

CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation 34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

Sr. No.	Key Financial Ratio		FY 2022-23	*FY 2021-22
1.	Debtors Turnover Ratio	%	62.53	62.10
2.	Inventory Turnover Ratio	%	15.80	14.78
3.	Interest Coverage Ratio	%	39.62	33.83
4.	Current Ratio	%	1.94	1.71
5.	Debt Equity Ratio	%	0.70	0.56
6.	Operation Profit Margin	%	1.76	2.25
7.	Net Profit Margin	%	0.63	1.10
8.	Change in Return on Net Worth	%	1.14	2.16

*Previous years Figures have been regrouped / rearranged wherever necessary

RISK AND CONCERNS

Looking at the scenario in India in case of gems and jewellery industry, Risks associated with operating in a particular industry and include risks arising from demand changes, changes in customers choice and industry changes. Gold price fluctuation risk could arise on account of frequent changes in gold prices either up or downside momentum. It could have adverse impact on earnings. Forex risks could arise from the company being exposed to foreign currency fluctuations which could impact its rupee earnings. Diamond prices usually are not very volatile over a long period of time.

DISCUSSION ON FINANCIAL PERFORMANCE OF THE COMPANY:

The financial performance of the Company has declined in the year under review.

During the year under review, the Standalone total Income was Rs. 8061.23 lacs as against Rs. 8572.84 lacs for the corresponding previous year.

Total Comprehensive income for the period was Rs. 50.38 lacs as against Rs. 93.24 lacs in the corresponding previous year.

INDUSTRIAL RELATIONS AND HUMAN RESOURCES:

The companys philosophy of grooming leadership from within, and giving first right of refusal to internal talent for new open positions, inspires higher levels of loyalty to the organization. This has resulted in a very strong, deeply acculturated mid-layer with long tenures in the company. This cohort played a pivotal role in seamlessly integrating new talent in FY 2023 and added significant value through their contributions and contextual knowledge.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which it operates, changes in the Government regulations, tax laws and other statutes, any epidemic or pandemic, natural calamities over which we do not have any direct/indirect control.

	For and On behalf of the Board of Directors
	Kanani Industries Limited
	PREMJIBHAI KANANI	HARSHIL KANANI
Place: Mumbai	(CHAIRMAN, WHOLE-TIME DIRECTOR)	(MANAGING DIRECTOR)
Date:08/08/2023	(DIN : 01567443)	(DIN : 0158262)