Kenvi Jewels Ltd Management Discussions

Business Overview

We are primarily into the business of manufacturing and retailing of jewellery. Besides this, we are also into wholesaling and trading of gold jewellery. The designing of our jewellery is done in house which is manufactured at our manufacturing unit situated at Manek Chowk, Ahmedabad. Further, we also get our jewellery designed by third party designers as and when required. We sell gold jewellery made with or without studded diamonds, precious and semi-precious stones. Our product portfolio includes Wedding Jewellery, Festive Jewellery, Rings, Chain, Earrings, Ear Chain, Nose-rings/Nose pins, Waist belts, Mangalsutra, Anklet, Zuda, Toe Ring, Pendant Set/ Pendant, Bracelet and Bangles.

Our retail business is done through our showroom situated at Odhav, Ahmedabad. We sell our jewellery under the brand name of "Suvarnakrupa" which is well known among our customers and in the local jewellery market. We have created a diversified portfolio for our jewellery in order to cater to our customers taste, preference, choice and the ever changing trends in the jewellery designs. Our portfolio offers our customers a wide variety of traditional, Indo-western and modern jewellery. We also customize jewellery according to the individual needs.

Our Company has participated in various exhibitions on both national and international level and the outcome of such participation has been very fruitful for the Company. Our Company position has been very firm financially which reflects in the Bonus issue we have done during the year. The Company has also increased its Authorised Share Capital for further allotment of shares.

Our Competitive Strengths

• Established brand name

• Quality Products

• Strategic Location of our Showroom

• Well established relationship with our supplier

• Strong in-house designing capabilities

• Wide Range of our Jewellery

• Experience of our Promoters

• Experienced management team and efficient work force

• Strong and long-term relationship with our clients

Our Business Strategies

• Focusing on increasing showroom sales

• Innovation in designing

• Enhancing Operating Effectiveness and efficiency

• Continue to maintain strong relation with existing customers

• Marketing

Opportunities

Increasing middle class population is expected to drive growth in the future and is expected to lead to an increase in demand for gold. Also, Indias population is increasingly becoming urbanised, which is expected to boost household income, thereby leading to higher demand for gold and other jewellery. The jewellery demand is also increasing steadily due to changes in its role from just being an item of adornment and as a store of value to a lifestyle and fashion accessory. Rising quality awareness of customers has provided a fillip to the organized retail segment, which is banking on its reliability and quality to compete against the highly fragmented unorganized jewellers. The Gems and Jewellery sector is witnessing changes in consumer preferences due to adoption of western lifestyle.

The Government of India has also launched the Sovereign Gold Bond Scheme to reduce the countrys reliance on physical gold imports to meet the investment demand for gold by retail investors.

Threats

Some of the key challenges facing the retail jewellery industry are as follows:

(a) Adapting to fast changing consumer preferences and buying patterns

(b) Volatility in the market prices of gold and diamonds

(c) Limited availability of high end retail space

(d) The retail jewellery is a working capital intensive business and currently there are increasing restrictions by banks over lending in this sector

Human Resources and Industrial Relations

The Company recognizes human resources as its biggest strength which has resulted in getting acknowledgement that the Company is the right destination where with the growth of the organization, value addition of individual employees is assured.

Internal Control

The Company has an adequate internal control system for safeguarding the assets and financial transactions of the Company. The strong internal control systems have been designed in such a way that, not only it prevent fraud and misuse of the Companys resources but also protect shareholders interest.

The Company has an effective internal control system, which ensures that all the assets of the Company are safeguarded and protected against any loss from unauthorized use or disposition. The Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. Based on the assessment carried out by the management and the evaluation of the results of the assessment, the Board of Directors are of the opinion that the Company has adequate Internal

Financial Controls systems that are operating effectively as of March 31, 2021. There were no instances of fraud which necessitates reporting in the financial statements. Further, there have been no communications from regulatory agencies concerning non-compliance with or deficiencies in financial reporting practices.