RBZ Jewellers Ltd Management Discussions

GLOBAL ECONOMY OVERVIEW

GDP Growth
Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024–25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026 World Economic Outlook (WEO). Growth in advanced economies is projected at 1.7 percent in 2026 and 1.8 percent in 2027. The report further states that commonly agreed international economic rules are essential to produce more sustainable growth and promote international economic integration. Trade frameworks should be transparent, predictable, and mutually beneficial.

Source: Global Economy in Crosscurrents of War and Technology, July 2026

10 Year Gold Price in USD/oz
High: 5327.65 Low: 1127.80 ? 2689.20 203.25%

Source: https://goldprice.org/gold-price-history.html

Over the past three decades, gold has delivered exceptional and consistent returns, reinforcing its enduring appeal as a preferred store of value and safe-haven asset. Gold prices in India have surged from approximately INR 10,908 per ounce in the mid-1990s to a closing price of INR 391,839.61 per ounce as of July 24, 2026, reflecting a substantial appreciation of over 2,740% during this period. This remarkable upward trajectory, particularly the sharp acceleration witnessed in recent years, underscores golds resilience as an asset class and reaffirms sustained consumer and investor confidence in its long-term value proposition.

Tonnes	Q125	Q126	y/y % change
World total	391.2	299.7	-23
India	81.6	66.1	-19
China, P.R.: Mainland	124.9	85.2	-32

Source: https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2026/jewellery

30 Year Gold Price in Indian Rupees
High: 489547.87 Low: 10908.20 ? 378044.53 2740.43%

Consumer Trends in the Jewellery Market
Consumer behaviour in the jewellery market has shifted markedly as gold prices have surged to record levels. Indias gold jewellery demand softened in Q1 2026, with volumes declining 19% year-on-year to 66 tonnes even as domestic gold prices rose 81% year-on-year; however, value demand rose 47% year-on-year to a record Rs999 billion, reflecting resilient consumer spending despite lower volumes.

Elevated prices have tempered purchase volumes and average ticket sizes, prompting a shift towards lightweight jewellery with lower making charges, while demand for lower-purity 18k and 14k jewellery has risen alongside heightened price sensitivity. A clear divergence has also emerged between segments: high-income customers continue to buy heavier pieces regardless of price, while mass-market buyers are reducing purchases or shifting to lower-carat, lighter-weight, or studded items. Exchange-for-old-gold transactions have also become a significant share of retail activity as customers manage rising costs.

Source: World Gold Council, India Focus Q1 2026; World Gold Council, January 2026 Update

Inflation Rates
Inflation trends have shown a gradual uptick through the course of 2026 after a period of relative softness. Indias annual retail inflation rose to 3.4% in March 2026 and further to 3.48% in April 2026, marking the fastest pace in a year, though still below market expectations. By May 2026, headline CPI inflation stood at 3.93%, with food inflation at 4.78%, and rural inflation at 4.25% compared to urban inflation of 3.53%.

Notably, the personal care, gold and silver basket has reflected sharply rising global precious metal prices, with gold and diamond jewellery inflation recorded at 40.93% and silver jewellery inflation at 155.23% in May 2026, underscoring how bullion price movements are feeding directly into the cost structure of the jewellery trade even as they sit outside the RBIs direct policy control.

Source: Ministry of Statistics and Programme Implementation, CPI Press Releases, March–May 2026; Trading Economics

Tariffs and Jewellery Trade
Tariff policy has had a direct and material bearing on the gems and jewellery sector over the past year. US tariffs on Indian goods, which had reached as high as 50% in 2025, were significantly reduced following a bilateral trade deal announced in February 2026, bringing the effective overall tariff rate on most Indian goods down to 18%. This trade deal is expected to deliver an incremental growth boost of around 0.2 percentage points of GDP, given Indias goods exports exposure of roughly 4% of GDP to US final demand.

The interim period of elevated tariffs had disrupted trade meaningfully: the SEEPZ Gems & Jewellery Manufacturers Association noted that the sector accounts for 85% of Indias diamond-studded jewellery exports to the US, directly employing 50,000 workers and supporting over 100,000 more, making it highly exposed to tariff shocks. For a domestic-facing jeweller, the effect has been more indirect filtering through via gold price volatility, import costs, and overall consumer sentiment rather than direct export tariffs.

Source: ClearTax US Tariff Tracker, August 2025; Goldman Sachs, February 2026; GJEPC/Solitaire Magazine, June 2025

INDIAN ECONOMY OVERVIEW

Indias Resilient GDP
India remains one of the fastest-growing major economies in the world, and this strength continues to provide a supportive backdrop for consumer-facing sectors such as jewellery. Real GDP growth for FY25 came in at 6.5%, and most major forecasters expect a further step-up in FY26, with growth estimates ranging between 6.9% and 7%. This momentum is being driven largely by domestic consumption, supported by moderating inflation, tax relief measures, and a recently concluded trade agreement with the United States that has reduced tariff-related uncertainty.

Goldman Sachs Research has forecast Indias real GDP to grow at 6.9% year-on-year in calendar 2026, an above-consensus estimate aided by a new US-India trade deal that is expected to lower trade-related uncertainty and unlock private investment.

Notably, 2026 is shaping up as a year of resilience in domestic demand, reform in fiscal and monetary policy, and recalibration in trade policy for India, reinforcing a broadly optimistic growth outlook for the year.

Rural demand has also shown an upward trend, helped by a healthy harvest and continued government spending. Taken together, these factors suggest that overall consumer purchasing power should remain fairly stable through FY26, even as specific categories like gold and jewellery face their own price-related headwinds.

Source: DD News/Crisil, December 2025; Goldman Sachs, February 2026

Indias GDP to grow 7% in FY26, Crisil raises growth forecast (December 2025), ddnews.gov.in

Headline inflation is likely to stay around the RBIs target of 4%
Percentage change, year on year

Source: CEIC, Goldman Sachs Research, Core inflation is headline inflation excluding food, fuel, and light inflation

Indicators for Gold Market
Gold prices have risen sharply over the past year, and this has become the single most important factor shaping market indicators. Domestic gold prices climbed to record levels through late 2025 and into 2026, driven by global geopolitical uncertainty and safe-haven buying. This has changed the composition of demand rather than simply reducing it: gold purchased as an investment, through bars, coins, and digital gold, has overtaken traditional jewellery as the primary form in which Indians are buying gold, a genuine shift from historical patterns where jewellery dominated.

Golds price history in India tells the story of the nation from the steadiness of the pre-independence years, through the sweeping economic shifts that followed independence, to the rapid appreciation seen in recent decades. Shaped by policy reforms, currency movements and global market forces, gold has consistently retained its place as one of Indias most trusted assets, valued not only for its financial returns but for the cultural and generational significance it carries across Indian households.

Over a 30-year period, the rupee has depreciated from roughly Rs35 to Rs87–88 against the US dollar, a decline of over 60% in the rupees value. Since Indian gold prices are effectively the dollar price converted into rupees, this steady currency depreciation acts as a persistent tailwind that runs underneath global price swings.

The net effect is that Indian gold prices in rupee terms have trended upward with fewer reductions than the dollar price, giving domestic investors the impression of comparatively lower volatility, despite underlying international markets turbulence.

Overall spending on gold has continued to rise even as the physical volumes purchased have declined, meaning value in the market has held up better than weight. This divergence between value and volume is an important indicator for jewellers, as it points to resilient consumer intent even amid affordability pressure.

Source: World Gold Council, India Focus reports, 2026

India remains a core market
Jewellery demand in key markets, tonnes*

Sources: Metals Focus, World Gold Council; *Data to 31 March 2026

Consumption Trends
Consumer behaviour is adapting visibly to the sustained high-price environment. A large and growing share of jewellery transactions now involve customers exchanging old gold for new pieces, rather than making entirely fresh purchases, as a way of managing rising costs. There is also a clear shift towards lighter, lower-carat, and studded jewellery, moving away from the heavier, higher-purity pieces that were traditionally preferred. This shift is most visible among mass-market and price-sensitive buyers, while high-income consumers have continued to purchase heavier, traditional pieces largely unaffected by price. Wedding and needs-based purchases remain a stable source of underlying demand, providing a floor even as more discretionary, non-essential buying softens.

Sources: World Gold Council, India Focus reports, 2026; Open Magazine/CRISIL Ratings, May 2026

Indias Gems and Jewellery Industry
Indias gems and jewellery industry continued to demonstrate resilience in FY26 despite global trade uncertainties, supported by strong domestic demand, export diversification and policy reforms. The domestic market was valued at approximately USD 85 billion (Rs7.31 lakh crore) in early 2026 and is projected to reach USD 130 billion by 2030, driven by rising disposable incomes, premiumisation and increasing organised retail penetration. The sector continues to employ over 5 million people and contributes nearly 7% of Indias GDP, reaffirming its significance to the countrys manufacturing and export ecosystem. (Source: https://www.ibef.org/industry/gems-jewellery-india)

The sectors structural transformation continues to be driven by greater formalisation through mandatory BIS hallmarking, GST compliance, digital manufacturing technologies, CAD/CAM design and 3D printing. Government initiatives, including 100% FDI under the automatic route, export promotion measures and free trade agreements, are expected to enhance Indias global competitiveness. The implementation of the India–UK trade agreement, Comprehensive Economic and Trade Agreement (CETA), alongside the existing India–UAE CEPA, is expected to provide duty advantages and unlock significant long-term export opportunities for Indian jewellery manufacturers.

Demand-Supply Scenario
On the demand side, gold purchased purely as an investment, rather than for jewellery, has become the largest single component of Indias overall gold consumption for the first time in over a decade, a notable departure from historical trends. Import volumes have also shifted in composition: while the overall annual gold import bill remained broadly steady compared to the previous year, actual volumes imported declined by more than a fifth, largely a reflection of higher prices rather than weaker underlying interest.

On the supply side, domestic recycling of old gold has picked up meaningfully over the year, as consumers increasingly trade in existing jewellery to offset the cost of new purchases. Globally, mine production and recycling are both expected to grow only modestly in 2026, suggesting supply is likely to remain relatively constrained relative to demand.

Source: World Gold Council, India Focus and Supply reports, 2026

List of Indian Products Impacted by US Tariff Rates

Product Category	Tariff Rate (August 7, 2025)	Tariff Rate (August 27, 2025)
Textiles & Apparel	25%	50%
Gems & Jewellery	25%	50%
Leather & Footwear	25% (20.8–29.51% for footwear)	50% (45.8–54.51% for footwear)
Marine Products	33.26% (25% + 2.49% anti-dumping + 5.77% countervailing)	58.26% (50% + 2.49% + 5.77%)

Organised Retail Growth Sector
A structural shift from unorganised, family-run jewellers towards larger, branded retail chains continues to reshape the industry, and this trend is expected to persist over the coming years. Indias broader retail sector is expanding rapidly, with organised retail steadily increasing its share of the overall market as consumers place greater value on certified purity, transparent pricing, and trusted buying experiences.

Within jewellery specifically, the organised segments share of the market is projected to rise meaningfully by the end of the decade, up from a little over a third currently. The Indian jewellery market as a whole has grown considerably faster than comparable markets in China and the United States over the past few years, reflecting Indias favourable demographics and rising incomes. Branded jewellery is expected to remain one of the fastest-growing sub-segments within this shift.

Outlook
The outlook for the sector over FY26 is mixed, balancing continued affordability pressure against underlying resilience in consumer intent. The governments recent decision to raise the effective import duty on gold is expected to weigh further on demand, with industry estimates suggesting this could meaningfully reduce overall jewellery, bar, and coin consumption for the year. Ratings agencies have also flagged that organised gold jewellery sales volumes could see one of their weakest years in a decade, as high prices continue to discourage discretionary purchases. That said, most analysts expect spending in value terms to remain fairly resilient in the absence of any major economic shock, even as the actual weight of gold sold continues to soften. Supply-side conditions, including mine production and recycling, are expected to see only modest growth over the year, keeping the market relatively tight.

THE FORCES SHAPING TOMORROWS GEMS & JEWELLERY INDUSTRY

Indias gems and jewellery industry is evolving in tandem with the rapid transformation of the countrys retail and consumer goods landscape. Rising disposable incomes, accelerating urbanisation, expanding organised retail and changing lifestyle aspirations are reshaping consumer purchasing behaviour. Jewellery is increasingly viewed not only as a traditional investment or ceremonial purchase but also as an expression of personal style, status and everyday luxury.

The growing influence of younger consumers, digital-first shopping experiences and premiumisation trends is driving demand for innovative designs, branded offerings and customised products. Together, these structural shifts are creating a favourable environment for sustained growth, positioning the gems and jewellery sector for long-term expansion across both domestic and international markets.

Premiumisation and Rising Disposable Incomes
Consumers are increasingly shifting towards premium, lightweight and branded jewellery as rising disposable incomes, urbanisation and changing lifestyle aspirations reshape purchasing behaviour. Higher spending on weddings, festive occasions and investment-led gold purchases continues to support sustained domestic demand.

Expansion of Organised and Branded Retail
The industry is witnessing rapid formalisation, with organised retailers expanding their presence across Tier II and Tier III cities. Consumers increasingly prefer certified, hallmarked and branded jewellery, driven by greater transparency, trust and superior customer experience, leading to market share gains for organised players.

Digitalisation and Omnichannel Commerce
Technology is transforming customer engagement through virtual try-ons, AI-powered recommendations, online jewellery platforms and seamless omnichannel experiences. Digital channels are expanding customer reach while enabling manufacturers and retailers to improve operational efficiency and inventory management.

Export Diversification and Trade Agreements
India continues to strengthen its position as a global jewellery manufacturing hub through expanding export markets and favourable trade agreements. Policy support remains a key growth catalyst and These initiatives enhance market access, reduce tariff barriers and improve the global competitiveness of Indian jewellery exports.

Advanced Manufacturing and Design Innovation
The adoption of computer-aided design (CAD), 3D printing, precision manufacturing and automation is enhancing product quality, reducing lead times and enabling greater design flexibility. Manufacturers are increasingly leveraging technology to deliver customised collections while improving productivity and cost efficiency.

GROWTH DRIVERS

Branded Jewellery Preference:
Consumers are increasingly shifting from unorganised jewellers to trusted branded retailers, driven by greater emphasis on quality assurance, design innovation, transparent pricing and certified products.

Wedding and Festive Demand:
Indias strong cultural affinity for gold and diamond jewellery continues to underpin demand, with weddings, festivals and gifting occasions driving consistent consumption across both urban and semi-urban markets.

Product Innovation and Lightweight Jewellery:
Manufacturers are introducing lightweight, contemporary and everyday-wear collections that cater to younger consumers seeking affordability, versatility and fashion-forward designs without compromising on craftsmanship.

Global Sourcing Hub:
Indias skilled craftsmanship, integrated manufacturing ecosystem and competitive production capabilities continue to strengthen its position as a preferred global sourcing destination for gold, diamond and studded jewellery, supported by expanding export opportunities.

SWOT ANALYSIS

STRENGTHS

End-to-End Manufacturing Strength: RBZ Jewellers continues to operate one of Indias most established organised jewellery manufacturing set-ups, blending artisanal handcraft with precision machine-based production, allowing the Company to balance craftsmanship, cost efficiency, and scale.

Diversified Client Base: RBZs dual-channel model, serving institutional B2B clients across regional and national retail networks alongside its own B2C brand, Harit Zaveri, continues to provide a well-balanced revenue mix and reduces dependence on any single sales channel.

In-House Design Capability: A dedicated design and quality assurance function remains central to RBZs positioning, particularly in the lightweight and antique jewellery categories, helping the Company maintain distinctiveness and consistency across collections.

Legacy and Promoter Experience: With a track record spanning over a decade and a half and deep-rooted promoter involvement, RBZ continues to draw on an established reputation that supports trust among both institutional partners and retail customers.

Post-Listing Momentum: Having listed on the capital markets in FY24, RBZ has used the period since to strengthen governance, reporting discipline, and market visibility, positioning the Company to respond more nimbly to evolving investor and market expectations as a publicly accountable entity

WEAKNESSES

Intensifying Retail Competition: As RBZ moves into new geographies such as Surat, Rajkot, Gandhinagar, it will be entering markets where established local and national jewellers already have a strong foothold. This competitive intensity in new markets could make store maturity and pay-back period slower adding execution risk to the Companys expansion plans.

Evolving Consumer Preferences Across Markets: As RBZ scales beyond its home base in Ahmedabad, it will need to cater to varying regional preferences in design and weight across new cities. This adds complexity to the expansion process, as offerings that have worked well in one market may need meaningful adaptation to succeed in another.

OPPORTUNITIES

Regional Retail Expansion: Building on the strong performance of its Ahmedabad showroom, RBZ plans to open four new stores in FY27 with Surat and Rajkot as flagship (large size) showrooms (approx. 10,000 sq.ft area), with Maninagar (East Ahmedabad) and Gandhinagar (adjoining city of Ahmedabad) being Mid-size category (~5000 sq. ft area), This gives the Company a clear, near-term runway to deepen its presence within its core Gujarat market before scaling further afield.

Accelerating Shift to B2C: RBZs retail revenue has been growing meaningfully faster than its wholesale business, reflecting a favourable structural shift in its revenue mix. Continuing to lean into this transition offers the Company a path to steadier, higher-margin, consumer-facing growth.

Continuous Product Innovation: RBZ has been launching several hundred new designs each quarter, particularly in the occasion-wear and wedding categories. Sustaining this pace of design innovation, alongside its ongoing pilot in 18-carat jewellery for daily wear, gives RBZ room to capture a broader range of customer occasions and price points.

Improved Access to Capital: RBZ recently received a ratings upgrade with a positive outlook on its credit facilities, reflecting improved lender confidence in the Companys financial profile. This strengthens RBZs ability to raise further capital on favourable terms to support its expansion plans.

THREATS

Policy and Duty-Related Uncertainty: RBZs management has flagged recent increases in gold import duty and related regulatory changes as unfavourable for industry sentiment, and has chosen to defer formal FY27 guidance as a result. This reflects where the management is also adopting wait n watch mode where genuine near-term uncertainty around how these changes may affect volume growth.

Rising Competitive Intensity in Wedding Jewellery: New entrants targeting the wedding and bridal jewellery segment could increase competitive pressure on RBZ in one of its more important revenue categories, potentially affecting pricing power and market share over time.

Gold Price and Hedging Risk: Continued volatility in gold prices, driven in part by global geopolitical developments, poses an ongoing challenge to RBZs hedging strategies and overall cost management, with a direct bearing on margins. Further as a part of mitigating Inventory Price risk, company also have ready infrastructure for Gold Metal Loan (GML) and derivative position through MCX/NCDX.

COMPANY OVERVIEW

RBZ Jewellers is Indias leading organised manufacturers of antique gold jewellery, backed by over 25 years of industry experience. Specialising in intricately crafted Jadau, Meena and Kundan jewellery, we serve a diversified customer base comprising leading national retailers, regional jewellers and local family-owned stores across 19 states and 72 cities. Our business spans wholesale, retail, contract manufacturing, supported by a technologically advanced manufacturing facility in Ahmedabad. We also operate our flagship retail showroom under the "Harit Zaveri Jewellers" brand, offering an extensive range of bridal, occasion and everyday jewellery.

Our portfolio caters to wholesale and retail customers while also delivering contract manufacturing and job work services for leading national jewellery brands. Built on a foundation of trust, transparency and operational excellence, we have established ourselves as one of the most trusted jewellery brands. Our extensive portfolio of gold, diamond, studded and precious jewellery is thoughtfully curated to meet the evolving preferences of customers across occasions, lifestyles and generations.

Our customer-centric business approach enables us to understand regional preferences, while our retail stores location and community-focused engagement ensure personalised customer experiences and efficient market reach.

We remain committed to delivering superior craftsmanship, exceptional service and lasting value. By consistently exceeding customer expectations and upholding the highest standards of quality and integrity, we continue to reinforce our reputation as a trusted destination for fine jewellery, heirloom pieces, bridal couture, and a preferred choice for generations of customers.

Operational Performance

Financial Performance Overview

Financial Ratios

Type of Ratio	Numerator	Denominator	FY 2025-26	FY 2024-25	Variance Remarks for (%) variance
Current Ratio (In times)	Current Assets	Current Liabilities	2.99	3.15	-5.21% NA
Debt-Equity Ratio (In times)	Total Debt	Total Equity	0.47	0.36	32% The Company has taken additional term and working capital loan on account of its planned expansion.
Debt Service Coverage Ratio (In times)	Earnings before Interest, Depreciation and amortisation and after tax other adjustments like loss/ profit on sale of fixed assets etc.	Debt Service	5.03	1.68	199.17% In FY 2024-25, there had been a foreclosure of a long term loan due to which outflows for servicing debt were relatively high.
Return on Equity Ratio (%)	Net Profit after Tax	Average Total Equity	20.11%	17.15%	17.30% NA
Inventory Turnover Ratio (In times)	Revenue from operations	Average Inventories	2.03	2.05	-1.25% NA
Trade Receivables Turnover Ratio (In times)	Revenue from operations	Average Trade Receivables	17.40	35.37	-50.81% Trade receivable increased by more than 200% in current year due to which turnover cycle has expanded.
Trade Payables Turnover Ratio (In times)	Total Purchases	Average Trade Payables	75.20	95.13	-20.95% NA
Net Capital Turnover Ratio (In times)	Revenue from operations	Working Capital	2.41	2.45	-1.75% NA
Net Profit Ratio (%)	Net Profit after Tax	Revenue from operations	8.61%	7.32%	17.63% NA
Return on Capital Employed (%)	Profit before Interest, Exceptional Items and Tax	Total Capital Employed (Total Equity + Total Debt - Deferred Tax Liabilities/Assets)	19.90%	18.59%	7.07% NA

HUMAN RESOURCES

At RBZ Jewellers, its people continue to be regarded as one of the Companys most valuable resources, underpinning consistent growth, operational excellence, and long-standing brand credibility.

As of FY26, the Companys total headcount stood at 315, reflecting its expanding retail footprint and growing scale of operations across Gujarat.

Building a Future-Ready Workforce
RBZ remains committed to developing a workforce equipped to meet the demands of a fast-evolving jewellery market. During FY26, the Company undertook a structured skills assessment exercise to identify capability gaps across manufacturing, design, and retail functions. This was followed by focused hiring efforts and the introduction of training modules aimed at sharpening technical craftsmanship, sales capability, and leadership readiness.

Technology - Led People Practices
The Company continued to invest in digitising its HR function through FY26, with the aim of improving efficiency and employee experience. Processes covering attendance, leave management, payroll, and employee records have been progressively moved onto digital platforms, reducing manual effort and improving turnaround times.

A few digital initiatives undertaken during the year include:-

- Implementation of SAP (S/4HANA) to strengthen internal controls

- SoP driven work culture ensures process consistency

- Adoption of modern casting and laser-based machinery

Employee Health, Safety, and Benefits
Employee well-being remains a core priority for RBZ. During the year, the Company continued to provide Group Personal Accident and Workers Compensation coverage to its workforce, alongside routine health check-ups and awareness initiatives.

In FY26, well-being remains central to RBZs human resources strategy. During the year, the Company continued to extend Group Personal Accident (GPA) insurance, Workers Compensation (WC) for the employees. Annual health check-ups and wellness drives were institutionalised to promote preventive healthcare and increase health awareness among employees.

Workplace Culture and Employee Engagement
RBZ continued to nurture a workplace built on collaboration, inclusivity, and mutual respect. Policies supporting healthier work-life balance, including defined break structures, leave entitlements, remained in place through FY26.

The Company also organised 20 engagement and cultural events during the year to strengthen team cohesion and reinforce a shared sense of belonging across its growing employee base.

Diversity and Inclusion
As RBZ scales its operations across new geographies, the Company remains mindful of building a workforce that reflects a range of backgrounds and perspectives.

In FY26, women employees comprised 19% of the total workforce, and the Company continued efforts to create an equitable and accessible work environment for all employees.

Talent Retention and Career Growth
Retaining skilled talent remains important to RBZ, particularly as competition for experienced craftsmen and retail personnel intensifies across the industry.

HRs Strategic Role Going Forward
Human Resources at RBZ is increasingly positioned as a strategic partner to the business, supporting talent acquisition, capability building, performance management, and employee engagement in a manner aligned with organisational goals.

Looking ahead, the Company remains focused on building a resilient, motivated, and skilled workforce capable of supporting RBZs long-term ambitions for growth, innovation, and customer-centricity.

The Company has initiated a Performance-based Appraisal system driven through Key Responsibilities Area (KRA) across all departments from FY27.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has an adequate internal controls system in place. The policies and procedures, covering all financial and operating functions, are also documented. The system controls are designed to provide reasonable assurance for maintaining proper accounting records. This reinforces reliability of financial reporting, monitoring of operations, protection of assets from unauthorised use or losses and compliance of regulations.

The scope and coverage of audits include:

1. Reviewing and reporting of key process risks

2. Adhering to operating guidelines and statutory compliances

3. Recommending improvements for monitoring and enhancing efficiency of operations

4. Ensuring reliability of financial and operational information. The Audit Committee periodically monitors and reviews the significant internal audit observations. It also reviews compliance with accounting standards, risk management and control systems and profitability.

RISK MANAGEMENT & MITIGATION

Competition Risk
MODERATE
As RBZ plans to expand into new geographies such as Surat, Rajkot, Maninagar (East Ahmedabad) and Gandhinagar, it faces established local and national jewellers with strong regional brand recall, potentially slowing store ramp-up and customer acquisition.
Mitigation
RBZ leverages its manufacturing strength, design innovation, and quality certification to differentiate its offerings, while building brand visibility through strong audio-visual films, B2C exhibitions, digital campaigns, and a phased city-by-city rollout to build local trust before scaling further.

Pricing Pressure
MODERATE
Intense competition from both organised and unorganised players, along with rising consumer price sensitivity, could compel RBZ to compete more aggressively on making charges and margins, particularly in mass-market and job-work segments.
Mitigation
The Company focuses on value differentiation through design uniqueness, hallmark certification, and lightweight/antique offerings, governance, transparency in retails sales practices, "Right Price-Fair Price" practices rather than price alone.

Market Risk
HIGH
Discretionary spending on jewellery is sensitive to broader economic conditions; any slowdown in consumer sentiment, coupled with evolving preferences toward lighter, more contemporary designs, could affect demand for RBZs traditional product mix.
Mitigation
RBZ continues to diversify its portfolio with lightweight, 18-carat, and occasion-wear collections, alongside frequent new design launches, to align with shifting consumer preferences and maintain relevance across customer segments.

Financial Risk
MODERATE
RBZs expansion plans rely significantly on debt and internal accruals, with an estimated inventory requirement of around Rs350 crore for new stores, expected to raise the Companys debt-to-equity ratio and increase sensitivity to interest costs and cash flow management.
Mitigation
The Company maintains access to established bank sanctions and has secured a ratings upgrade with a positive outlook on its credit facilities, supporting more favourable borrowing terms. The Companys Gold Metal Loan (GML) limits are under control and act as a hedging tool to mitigate gold price fluctuations.

Regulatory Risk
MODERATE
Recent increases in gold import duty and evolving hallmarking or taxation norms have created near-term uncertainty, with management itself flagging these developments as unfavourable and prompting a deferral of formal FY27 guidance.
Mitigation
RBZ maintains close engagement with industry bodies and regulatory developments to adapt sourcing and pricing strategies promptly, while its compliance and audit functions ensure the Company remains aligned with evolving SEBI and taxation requirements.

Operational/ Execution Risk
LOW
RBZs retail store rollout, combined with fluctuating gold prices, exposes the Company to execution risk.
Mitigation
The Company is pursuing a phased and geographically focused expansion strategy within its core Gujarat market, supported by experienced promoters and an established manufacturing base, to reduce the risk of execution delays as it scales.

CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions 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 global and Indian demand and supply conditions, finished goods prices, input materials availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events or otherwise.