The global market for jewellery is expected to have surpassed US$ 257
billion revenues by 2017. The value of worlds jewellery market is projected to grow
by a CAGR of over 5% over the next five years. The market is predominantly driven by the
Asia Pacific and the Middle Eastern markets, but US continues to remain the dominant
player in this industry.
ECONOMIC OVERVIEW
India With strong growth potential projected for the coming years, the
Indian economy continues to be the flagbearer for economic expansion in the global
landscape. The government has made significant progress on important economic reforms,
which will support strong and sustainable growth going forward. The implementation of the
goods and services tax, which has been in the making for over a decade, will help raise
Indias medium-term growth by enhancing the efficiency of production and the movement
of goods and services across Indian states.
Indias economy temporarily decelerated, nevertheless, it remained
the second-best performer amongst major countries, with strong macroeconomic fundamentals.
This interim deceleration was primarily caused by the demonetisation measures and the
introduction of the Goods & Services Tax (GST). In the second half, the scenario
improved significantly and India jumped 30 spots on the World Banks Ease of Doing
Business rankings, while similar actions to liberalise the foreign direct investment (FDI)
regime helped increase flows by 20%. (Source: Economic Survey, 2017-18)
Indias Gross Domestic Product (GDP) grew by 6.7% in FY2018,
driven by strong performance in construction, manufacturing and public services, showing a
persistent revival trend. With this performance, India retained its ranking as the
worlds fastest-growing major economy, outpacing China by nearly a percentage point.
Looking ahead, Indias economic growth is expected to gather momentum in FY2019,
aided by a conducive domestic and global environment. The factors that are expected to
help the economy in achieving stronger growth are effective implementation of GST; an
improved credit off-take; a large resource mobilisation from the primary market,
strengthening investment activity; and acceleration of global trade growth. In addition,
the thrust on rural and infrastructure sectors in the Union Budget FY2019 are expected to
rejuvenate rural demand. In line with a positive economic development outlook, the
International Monetary Fund (IMF) has projected Indias economy to grow by 7.4% in
FY2019.
INDUSTRY OVERVIEW
Gems & Jewellery - World
The United States currently accounts for the largest jewellery market
in the world with more than half the market being dominated by diamond jewellery segment.
Regionally, Asia Pacific holds the worlds largest jewellery market and is driven
largely by China and India, two of the largest consumers of gold in the world and also
hold majority of the processing and manufacturing industry for jewellery. The global
market is witnessing an improvement in the jewellery sales overall and with rising
disposable incomes and changing lifestyles. It is set to experience strong growth over the
coming years.
According to ‘Global Gems and Jewellery Market Forecast &
Opportunities, 2018 the jewellery market worldwide has grown steadily over the last
few years. While it slowed down during the global economic recession, it is likely to grow
at a faster rate compared to the growth rate of the past three years. The global market
for jewellery is expected to have surpassed US$ 257 billion revenues by 2017. The value of
worlds jewellery market is expected to grow at a CAGR of over 5% over the next five
years. The market is predominantly driven by the Asia Pacific and the Middle
Eastern markets, but US continues to remain the dominant player in the
industry.
(Source: TechsciResearch)
The global Gems & Jewellery industry is seen becoming a US$ 443
billion industry by 2022. This is on account of the booming tourism industry,
establishment of a large number of exclusive showrooms by leading players, and rising
online availability of gems & jewellery. Demand for gems & jewellery across the
globe is dominated by Asia-Pacific and North America. Expanding urbanisation, changing
lifestyles, growing E-Commerce sales, rising presence of organised retail channels,
growing number of premium product launches and synchronised distribution networks is
projected to drive the global jewellery market during the forecast period.
Demand for diamond in gold, platinum, gemstones and pearl jewellery has
always been high, regardless of prices, globally. Further, major players operating in
global gems & jewellery market are changing their product portfolios and increasing
their focus on making customised jewellery, as per consumer demands. Advancements in
jewellery making process, along with availability of a range of certification bodies such
as Kimberly Process Certification Scheme and Bureau of Indian Standards (BIS) hallmarking
are anticipated to pump growth in the global market in the coming years. Asia-Pacific is
also emerging as the fastest growing market across the globe, on account of high demand
from India, China, Vietnam, Thailand, Japan and Indonesia. High demand for Gems &
Jewellery in the region can also be attributed to rising disposable incomes, and
aggressive marketing and promotional strategies by leading players.
Global Market - Trends & Developments:
• Growing Use of 3-D Jewellery Printing
• Increasing Demand for Smart Wearable Jewellery
• Changing Preferences of Youth Population
• Rising Demand for Branded Jewellery
• Technological Advancements in Jewellery Manufacturing
• Growth in Organised Retail Formats and E-Commerce
• Emergence of New Product Categories
• Aggressive Marketing and Promotional Strategies
Gems & Jewellery - India
Indias gems and jewellery sector is one of the largest in the
world, contributing 29% to global jewellery consumption. The market size, which is
currently at US$ 75 billion, 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% to Indias
GDP and 14% to Merchandise Exports, and employs over 4.64 million employees. It
contributes about 15% to Indias total merchandise exports. The overall net exports
of gems and jewellery stood at US$ 32.71 billion during FY2018, registering a CAGR of
5.83% over FY2005, whereas imports increased at a CAGR of 7.97% from US$ 11.63 billion in
FY2005 to US$ 31.52 billion in FY2018.
Hub of Jewellery
Based on its potential for growth and value addition, the Government of
India has declared the sector as a focus area for export promotion. It has undertaken
various measures to promote investments and to upgrade technology and skills to promote
‘Brand India in the international market. 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.
Moreover, India exports 75% of the worlds polished diamonds, as
per statistics from the Gems and Jewellery Export Promotion Council (GJEPC). Indias
Gems and Jewellery sector has been contributing in a big way to the countrys foreign
exchange earnings (FEEs). The Government views the sector as a thrust area for export
promotion. The Indian government presently allows 100% Foreign Direct Investment (FDI) in
the sector through the automatic route. The cumulative Foreign Direct Investment (FDI)
inflows in diamond and gold ornaments in the period April 2000 – December 2017 were
US$ 1,111.52 million, according to Department of Industrial Policy and Promotion (DIPP).
(Source: IBEF Report)
India is the worlds largest centre for cut and polished diamonds
in the world and exports 75% of the worlds polished diamonds. India has become world
leader in cut and polished diamond exports, polishing nearly one billion stones each year.
Today, 14 out of 15 diamonds sold in the world are either polished or cut in India. India
exported US$ 6.29 billion worth of cut and polished diamonds during April to June, 2018.
With improvement in living standards, the sector is likely to grow at a rapid pace. The
Gems & Jewellery Export Promotion Council intends to add 3 million more work force by
2022. Being one of the largest exporters of gems and jewellery, the industry is
contributing a major chunk to the total foreign reserves of the country. UAE, US, Russia,
Singapore, Hong Kong, Latin America and China are the biggest importers of Indian
jewellery.
The Gold Market
India is the worlds largest consumer of gold. Rising middle class
population and increasing income levels are the key drivers for gold demand and other
jewellery in India. Gold demand in India rose 11% year-on-year to 737.5 tonnes in 2017.
Also, the Government of India has permitted 100% 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
India is deemed to be the hub of the global jewellery market because of
its low costs and availability of high-skilled labour. It is the worlds largest
cutting and polishing centre for diamonds, with the cutting and polishing industry being
well supported by government policies.
ensuring a quality check on gold jewellery. The Government launched the
Gold Monetisation Scheme to reduce the countrys reliance on gold imports to meet
domestic demand.
Jewellery Exports
The countrys gems and jewellery exports contracted by 8% to US$
32.72 billion in FY2018 owing to demand slowdown in major markets, including the US.
Exports declined by 8.67% to 2,64,130.64 crore in FY2018, mainly due to drop in demand
from the UAE, according to data from GJEPC. Major export destinations were Hong Kong with
33%, followed by UAE with 25% and US at 23%. The exports were primarily driven by cut and
polished diamonds (CPD) segment, which witnessed an increase of 0.18% to
1,52,961.38 crore in FY2018, compared with 1,52,682.59 crore in
FY2017. Meanwhile, gold jewellery exports registered a growth of 6.71% to 62,387.48
crore in FY2018, against
58,464.92 crore in FY2017, while export of silver jewellery decreased
18.91% to 21,830.76 crore, compared with
26,923.25 crore previously.
Gross Exports of Gems & Jewellery (In Million)
| Year |
|
| FY2018 |
43,199 |
| FY2017 |
39,287 |
| FY2016 |
40,008 |
| FY2015 |
40,237 |
| FY2014 |
43,630 |
| Source: GJEPC Website |
|
|
|
| Gross Exports of Gold Jewellery |
| (In Billion) |
|
| Year |
|
| FY2017 |
8,722 |
| FY2016 |
8,557 |
| FY2015 |
9,904 |
| FY2014 |
8,367 |
| Source: GJEPC Website |
|
US is the largest consumer of diamonds and jewellery globally, as it
imports 16% of its jewellery from India. Meanwhile, India is making efforts to grow the
demand for ‘India Made jewellery products in the established markets like US,
Hong Kong and China.
US – Key Growth Driver for Exports
US is the largest consumer of diamonds and jewellery globally and the
region is showing an upward trend. The country imports 16% of its jewellery from India.
India is making efforts to grow the demand for ‘India Made jewellery products
in the established markets like US, Hong Kong and China. It is exploring and penetrating
new markets including Iran, Jordan, Turkey, Latin America, Russia and the South-East Asia.
The US economy is on a revival path after witnessing a slowdown in the past few years. The
consumer sentiment has turned positive and buyers have started coming to the market for
the purchase of new jewellery.
Organised Jewellery - Global
While the overall retail Gems & Jewellery sector is growing, the
organised retail segment has also been expanding in the recent years. Currently, the
organised segment accounts for a significant portion of the world market. . With changing
lifestyles and growing disposable incomes, the outlook and buying patterns of consumers in
the recent years have changed rapidly. The world over, consumers now demand greater
transparency, better service and a more compelling value proposition, driven by brand and
fashion.
Changing Consumer Dynamics
The retail sector is growing rapidly, driven by large retailers and
brands. The leading brands are pulling the organised market and are opening opportunities
to grow. The large brands are also increasing their reach at a faster pace by setting up
showrooms, on-line sales portals and franchise routes. These players are also offering a
variety of discount schemes including financing schemes to consumers to further boost
sales. Future growth outlook of the Gems & Jewellery sector looks healthy on a global
scale. Consumers are demanding new designs and varieties in jewellery, and branded
jewellers are able to fulfil their changing demands better than local unorganised players.
Moreover, increase in per capita income is leading to an increase in sales of jewellery.
Branded Jewellery
Consumers are beginning to move towards branded jewellery and are
willing to pay a justified premium for high quality and inventive designs. As a
consequence, the share of the organised segment has grown substantially the world over.
The share of branded jewellery is expected to grow strongly, aided by the emergence of
large organised jewellery manufacturers serving the rapidly growing retail industry.
Introduction of CVD/Lab-grown Diamonds
Lab-grown diamonds, which are sold in the form of jewellery pieces and
are certified as synthetic, are a product of technology. Lab-grown diamonds are
‘grown in controlled laboratory environment using technological processes that
duplicate the conditions under the earths crust. Once grown, cut and polished, these
stones are identical to natural diamonds and bear the same molecular properties. Both
mined and grown diamonds are made of pure carbon and have identical physical, chemical and
optical attributes.
Lab-grown diamonds create the allure of something rare and eternal
– similar to natural gems. These are conflict free, eco-friendly and less expensive.
‘High pressure, high temperature (HPHT) and chemical vapour deposition (CVD)
are two methods of culturing diamonds in a laboratory. Lab-grown diamonds are produced
from the seed of a flawless natural diamond. A flawless diamond produced in a lab can also
be used as a seed.
Indias export of lab-grown diamonds increased from US$ 25 million
( 119.8 crore) in FY2011-12 to US$ 79 million ( 484 crore) in FY2014-15. Likewise,
import of rough lab-grown diamonds (for polishing) had shot up from US$ 12 million ( 57.5
crore) to US$ 63 million ( 385.24 crore) in FY2014-15. CVD/HTHP diamonds account for
almost 95% of the export-import data of lab-grown diamonds.
E-Commerce in Jewellery
The overall online retail market in India is estimated to have risen to
US$ 6 billion in 2015, compared with US$ 3.5 billion in 2014, according to Gartner Inc.
CLSA Asia Pacific Markets forecasts this to grow to US$ 22 billion by 2018. The online
jewellery market is expected to be worth US$ 2.5 billion over the next 5-10 years.
Currently, it accounts for less than 0.1% of the US$ 55 billion jewellery market. The
online retail jewellery market is growing steadily due to changing consumer behaviour,
especially of the young Indian women exposed to global trends. Online retailing offers
convenience of purchasing from the comforts of the home. Moreover, it allows other
incentives such as giving customers time to decide and not making it obligatory for them
to purchase at their very first visit.
Government Initiatives
The Government of India would notify a new limit for reporting about
transactions in gold and other precious metals and stones to authorities, to avoid the
parking of black money in bullion. The Bureau of Indian Standards (BIS) has revised the
standard on gold hallmarking in India from January 2018. The gold jewellery hallmark will
now carry a BIS mark, purity in carat and fitness as well as the units
identification and the jewellers identification mark. The move is aimed at ensuring
a quality check on gold jewellery.
The Government of India has planned to set up a Common Facility Center
(CFC) at Thrissur, Kerala. The Gems and Jewellery Export Promotion Council (GJEPC) signed
a Memorandum of Understanding (MoU) with Maharashtra Industrial Development Corporation
(MIDC) to build Indias largest jewellery park in at Ghansoli in Navi-Mumbai on a
25-acres land with about more than 5,000 jewellery units of various sizes ranging from
500-10,000 square feet. The overall investment of 13,500 crore (US$ 2.09 billion).
(Source: IBEF Report on Gems & Jewellery Industry)
Industry Outlook
Growth in Gems and Jewellery sector would be largely contributed by the
development of large retailers and brands. Established brands are guiding the organised
market and opening opportunities to grow. Increasing penetration of organised players
provides variety in terms of products and designs. Online sales are expected to account
for 1-2% of the fine jewellery segment by 2021-22. Also, the relaxation of restrictions of
gold imports is likely to provide a fillip to the industry. The improvement in
availability along with 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. Demand for jewellery is expected to be significantly
supported by the recent positive developments in the industry.
(Source: IBEF Report on Gems & Jewellery Industry)
In the coming years, growth in Gems & 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. 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.
The Gems & Jewellery industry is launching several initiatives to
further its share of global trade in the sector. With a share of over 60%, India is
already a major player in the manufacturing of diamonds across the world. Besides
furthering its current impact on worlds diamond trade, the industry is now aiming to have
the same influence in the trade of precious gems, including precious and semiprecious
stones. The industry, which already employs 4.6 million people, has a huge potential of
skilling labour and contributing to the decline in Indias unemployment rates.
Another key focus is the export potential of the industry. With India being a cutting and
polishing hub for diamonds, the Government aims to make India a preferred destination for
jewellery manufacturing and an international diamond trading hub.
Increasing penetration of organised players provides variety in terms
of products and designs. Online sales are expected to account for 1-2% of the fine
jewellery segment by 2021-22. The improvement in availability along with 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.
COMPANY OVERVIEW
We, at Tara Jewels Limited, are an integrated player in the global
jewellery industry catering to a diverse audience across 20 countries in five continents.
We have close to two decades of experience in the international market with leading
retailers across the globe. We have a strong background in retailing of jewellery to large
global retailers.
Our presence spans across the value chain – from designing to
manufacturing and retailing of jewellery. We are predominantly an exporter and retailer of
studded diamond jewellery and over 55,000 designs in over 20 countries and five
continents, including US, UK and Europe.
We are operating in the Branded Jewellery segment of the jewellery
value chain through our diversified product mix of studded jewellery and diamond studded
jewellery. Our basket includes products of Gold, Platinum and Silver. Our portfolio of
products includes studded gold, platinum and silver jewellery. Our channel of sale
includes the Retail Partner Model where we supply jewellery to international brands and
jewellery retailers.
Our Manufacturing Capability
We have three manufacturing facilities spread across approximately
80,000 sq. ft. – one outside SEEPZ, Andheri; and the other two within the SEEPZ
premises. We have a team of 39 designers and 1,000 craftsmen (Karigars) and have
implemented SAP across all the manufacturing units.
Our Competencies:
• State-of-the-art equipment and advanced technologies
• High precision jewellery manufacturing technology
• Fully automated jewellery casting plant
• Patented turntable technology
• Multi-skilled workforce
• Robotics technology for stone setting
Foray into Lab-grown Diamonds
We made a foray into the jewellery end of lab-grown diamond industry by
supplying fashion jewellery with diamonds grown in laboratories. Besides mined diamonds,
we also procure lab-grown diamonds from manufacturers to supply jewellery created from
them to the retailers in US and Europe. Our objective behind this is to fill the void in
the market for well-priced lab-grown diamond fashion jewellery.
International Retail
We understand the demands of global consumers and serve distinct
markets across various continents. Our jewellery is mainly exported to Australia, Canada,
European Union, South Africa, United Kingdom and United States of America. About 90% of
our revenues are contributed by the export of diamond and diamond studded jewellery to
global retailers with an extensive distribution network. We have a global product
development team, led by the sales team in US.
Our Strategic Tie-ups
We have strategic tie-ups with reputed global branded jewellery
retailers and international chains in the global market. We co-brand our merchandise with
reputed jewellery retailers to enhance brand recognition and repeat orders. We export
diamond and coloured stone studded jewellery and branded jewellery to international
jewellery retailers. We export studded jewellery to global retailers and leading chain
stores across 12,000 points of sale globally.
Our Operational Highlights:
• Our Top Brands Zac Posen, Monique Lhullier and Trios
performed well across all outlets.
• Brands grew higher at the outlets of Helzberg, Blue Nile and
Walmart.
Awards & Accolades
International
• Awarded as "Global Supplier of the Year" second time
by Walmart
• Bagged Overall Excellence Award (Second-highest exporter in the
category of studded precious metal jewellery exports in EPZ) by The Gem & Jewellery
Export Promotion Council in year 2007, 2008, 2009
• Conferred with the status of a "Star Trading House" by
the Ministry of Commerce & Industry; Been the highest exporter in gems and jewellery
for FY2009 and FY2010
• Won the "Luxury Retailer of the Year" award at the
Star Retailer Awards 2013
• Bagged "Best Store Design of the year - Single Brand
category" at the Economic Times Retail Awards, 2013
• Won "Print campaign of the Year 2012" at the Retail
Jeweller India Awards, 2012
• Received the Responsible Jewellery Council (RJC) Certification,
2014 by meeting the highest ethical, social and environmental standards Retail
• Luxury Retailer of the Year" at the Star Retailer Awards
2013
• Best Store Design of the year – Single Brand category"
at the Economic Times Retail Awards 2013
• Print Campaign of the Year 2012" at the Retail Jeweller
India Awards 2012
Management Outlook
We are capitalising on our asset light model to cater to rising demand
for branded jewellery. This is aiding us in optimising margins and enhancing
profitability. Over the years, we have leveraged our domain expertise, industry know-how,
skilled labour and our manufacturing capabilities to drive innovation, enhance our
footprint and delight our customers. We are working towards being the preferred
destination for diamond manufacturing and an international diamond trading hub.
Moving ahead, we are aiming to capture demand in the international
branded retail segment to increase brand recognition and build new brands. We are
gradually expanding our presence in the global market, introducing region specific
collection, focussing on new strategies to enhance market share, and gaining repeat orders
from the existing clients.
Financial Overview
Standalone:
During the year under review, the Company earned a total revenue of
442.35 crore, against 1,197 crore in the previous year. The Net Loss after Tax suffered
by the Company for the year under review was 722.76 crore, against a Net Loss after Tax
of 11.82 crore achieved by the Company in the previous Financial Year.
Consolidated:
During the year under review, the Company earned a total revenue of
845.17 crore, against 1,557.85 crore in the previous year. The Net Loss after Tax
suffered by the Company for the year under review was 720.90 crore, against the Net Loss
After Tax of 4.62 crore achieved in the previous financial year.
Human Capital
At Tara, we have laid a foundation that emphasises on people, helping
us create an environment where employees thrive to deliver an exceptional customer
experience. We have extended our work culture from beyond what we offer to our customers
to a larger audience, including our employees. Our employees include sales, IT,
administrative, finance, marketing, procurement, logistics, design, merchandise and
factory personnel. We believe in developing a strong relationship with our employees. Our
Company makes investments in training and learning & development of employees on a
regular basis. We emphasise on providing our employees with effective training programs,
resulting in the improvement of operations and efficiency, as well as customer service
standards.
Risk Management
Your Company has put into place a detailed Risk
Management Policy. It has tried to identify the various types of risks
and integrate risk management activities at all levels in the Company. The details about
the risk management policy are given in the Boards Report.
• Business Threats
The gems and jewellery sector in India is unorganised and fragmented.
Around 90% of the players operate in the unorganised sector mostly in family-run
operations. The nature of the sector prevents it from achieving economies of scale.
Mitigation: The Company is engaged in the export of Gems &
Jewellery. Overseas importers place the orders based on credentials and the Companys
promoters being associated in this business for three decades are not affected by such
competition.
• Predominance of the US market
The Indian gems and jewellery sector is pre-dominantly dependent on the
US markets, which is its top export destination. The growth of gems and jewellery sector
is heavily dependent on the growth of demand in the US market.
• Exchange Rate/Currency Risk
The Gems and Jewellery sector is affected by the rupee/ dollar exchange
rate because it is export oriented. Any volatility in the exchange rates affects the
margins of the players.
Mitigation: The Company would do forward cover for imports and
exports and insulates itself from fluctuation in exchange rate.
• High Level of Inventories
As the Gems and Jewellery sector is highly dependent on imports for its
raw materials, the players have to maintain a high level of inventory. However,
maintaining this inventory becomes difficult for the players during the slack season, as
it carries inventory price risk.
Mitigation: The Company does not envisage holding large inventory,
and as it is a jewellery exporter, the purchases would be made based on orders only. For
sales, it expects to have an inventory turnover of 3 to 5 times and thereby reduce the
risk of inventory holding substantially.
• Competition from Other Luxury Goods
With the increase in disposable income and the change in standard of
living, the demand for luxury goods such as perfumes, consumer electronics, leather,
automobile and gadgets are also increasing. The Gems and Jewellery sector is experiencing
competition from these luxury goods, which is eating into the market share of the sector.
Mitigation: The market potential is huge and the competition from
other consumer goods would not dent companys turnover. The estimated turnover of the
company is very small when compare to total export turnover of the country. Therefore, the
risk is negligible.
• Artificial Jewellery
The sector also faces a challenge in the form of integration of
synthetic or man-made diamonds. With the advent of technology, it is difficult to
differentiate between natural and artificial jewellery. This may hit the sale of low-cost
jewellery in the long run.
Mitigation: There are different classes of people who buy real gold
jewellery and artificial jewellery. Artificial items are more use by youngsters and office
goers for day-to-day use, whereas the real gold jewellery is used for occasions and as a
tool for savings of earnings. Therefore, this competition is also small and negligible.
Internal Controls
The Company has an adequate internal control system, commensurate with
the size of its operations. The Companys Audit Committee reviews the internal
control systems and internal auditors recommendations from time to time. All efforts
are being made to make the internal control systems more effective. We identify new risks
and re-evaluate old risks during the year, in the process of considering risk mitigating
strategies. Some of the risks that our Companys core businesses are exposed to
include credit risk, market risk, operational risk and legal risk. It is also exposed to
specific risks in connection with the management of investments and the environment within
which it operates. The Company manages cost escalation risk through processes aimed at
optimising costs through suppliers and through rigorous contracts and procurement.
We seek to understand, limit and manage the adverse impacts arising
from external and internal events. Our risk management team safeguards and protects the
Companys assets against unauthorised use or disposition, maintenance of proper
accounting records and verification of authenticity of all transactions. Within the
Company, the directors are responsible for maintenance of a sound system of internal
controls. This is done through a continuous process of identifying, evaluating and
managing the risks faced by the company. The Companys effectiveness on internal
control is also checked by external agencies. This results in an unbiased and independent
examination of the adequacy and effectiveness of the internal control system and aims to
achieve the objective of optimal functioning of the Company.
Cautionary Statement
This document contains statements about expected future events,
financial and operating results of Tara Jewels Limited, which are forward-looking. By
their nature, forward-looking statements require the Company to make assumptions and are
subject to inherent risks and uncertainties. There is significant risk that the
assumptions, predictions and other forward-looking statements will not prove to be
accurate. Readers are cautioned not to place undue reliance on forward-looking statements
as a number of factors could cause assumptions, actual future results and events to differ
materially from those expressed in the forward-looking statements. Accordingly, this
document is subject to the disclaimer and qualified in its entirely by the assumptions,
qualifications and risk factors referred to in the managements discussion and
analysis of Tara Jewels Limiteds Annual Report, 2017-18.
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