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Management Discussion and analysis report on the business of the company as applicable and to the extent relevant is given below:

The Indian Economy is on a steady growth trajectory. If some estimates are to be believed, the Indian Economy is said to be at a much sweeter spot when compared to the rest of the world. In the IMF Estimates of GDP growth among big economies all over the world, India, for the first time ever, tops the chart. And the road ahead looks good for India as an emerging Economy.

According to the UNIDOs (United Nations Industrial Development Organization) industrial statistics 2016, India has climbed up three positions to become the sixth largest industrial country in the world.

The government has taken several initiatives in the areas of infrastructure, easing the process of doing business, opening the doors to FDI, targeting inflation for monetary policy, starting campaigns on smart cities, urban development, encouraging startups, skill development etc. The impact of most of these measures can be gauged over a period of time and may not get reflected in the economic numbers immediately as they must hence be interpreted more in terms of laying a foundation for future growth.



According to the International Monetary Fund (IMF), the global economy is expected to grow at approximately 3.7% in 2017. USA is showing signs of strong fundamentals (low unemployment, consumer spending etc.), which continue to support recovery. Asia contributed on an average two-thirds to the global economic growth in the past few years and is expected to continue driving this growth in 2021. Japan is expected to remain steady while China is expected to witness a marginal slowdown in growth.

Risks to global growth in the form of deflation, slowdown in China, lower commodity prices and interest rate hike in USA continue to weigh heavily on the growth momentum and outlook.

GDP growth in Europe is expected to remain low as the strength of supportive factors (accommodative monetary policy, low energy prices and Euro depreciation) diminishes, amidst uncertainty relating to Britains referendum, migrant crisis and geo-political tensions. Europe continues to face multiple headwinds due to high debt levels, a fragile banking sector and increasing political impasse.

India is expected to continue its growth momentum in Financial Year 2021-22 on the back of robust manufacturing sector growth.

Further, various measures such as ‘Make in India, ‘Smart Cities, ‘Digital India that the Government has been taking in the last couple of years are beginning to show results and the gradual implementation of structural reforms will continue to broaden and contribute towards higher growth.



A rise in domestic investments has been one of the most significant contributors to the growth story of India. Domestic investments in India are divided into two parts - public investments and private investments. Private investments are further divided into two parts, which are household investments and corporate investments. Private domestic investments depend on a slew of factors - macroeconomic stability, high household savings, productivity, access to credit, resolution of non-performing assets, clearing up of balance sheets, etc.

Domestic investments and foreign investments in India work hand-in-hand to help the growth of the country. Growth in emerging economies like India results mainly from innovations that allow domestic sectors to catch up with cutting-edge technology. The process of catching up with the leader in any sector requires the cooperation of a foreign investor who is familiar with the leading technology, and a domestic entrepreneur/investor who is familiar with the local conditions.

The Indian private investing space has also been showcasing signs of maturity over the past few years. The market has revealed that new investments accounted for about 50% of VC transactions. The VC-to-PE pipeline has also become robust and consistent.

The concept of Make in India - Atmanirbhar Bharat, various PLI schemes, and financial incentives provided by the government are a few examples of investor-friendly programmes that domestic companies are utilising to increase their production base and create new capacities, which leads to increasing domestic investments. There are multiple investors driving domestic investments in the country:

? Government/Public Sector Enterprises

? Private Sector Enterprises

? Banks/Financial Institutions/Domestic Institutional Investors

? Retail Investors


The gems and jewellery market in India is home to more than 500,000 players, with the majority being small players.

India is one of the largest exporters of gems and jewellery and the industry is considered to play a vital role in the Indian economy as it contributes 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 overall gross exports of Gems &Jewellery in April 2016 stood at US$ 3.23 billion, whereas exports of cut and polished diamonds stood at US$ 1.78 billion. Exports of gold coins and medallions stood at US$ 302.67 million and silver jewellery export stood at US$ 299.69 million in April 2016. The overall gross imports of Gems &Jewellery in April 2016 stood at US$ 2.90 billion.

According to a report by Research and Markets, the jewellery market in India is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.95 per cent over the period 2014-2019.

The cumulative Foreign Direct Investment (FDI) inflows in diamond and gold ornaments in the period April 2000-December 2015 were US$ 751.37 million, according to Department of Industrial Policy and Promotion (DIPP).

During April-December 2015, India imported US$ 17.33 billion worth of raw material for gems and jewellery. With an 6 per cent share in polished diamonds in 2016, India has become the worlds Fourth largest diamond consumer.


As of February 2021, Indias gold and diamond trade contributed ~7.5% to Indias Gross Domestic Product (GDP) and 14% to Indias total merchandise exports. The gems and jewellery sector is likely to employ ~8.23 million persons by 2022, from ~5 million in 2020. Based on its potential for growth and value addition, the Government declared the gems and jewellery sector as a focus area for export promotion.

The Government has undertaken various measures recently to promote investment and upgrade technology and skills to promote

‘Brand India in the international market. The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or the Government of India. The Indian Government also signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in March 2022, this will allow the Indian Gems and Jewellery industry to further boost exports. CEPA will provide the industry duty-free access to the UAE market. Indias Gems Jewellery Export Promotion Council (GJEPC) aims to triple its exports to the UAE post the CEPA.


Cumulative FDI inflows in diamonds and gold ornaments stood at US $ 1213.05 Millions between April 2000-March-2022. In September 2021, Malbar Group Invested Rs. 750 Crore (US $ 100 millions) in a gold refinery and jewellery unit in Hyderabad.

India ‘s Gems and Jewellery exports reached US$ 39.14 Billion in 2021-2022, a 54.13% rise from the previous year.

India ranks first among the top exporters in cut and polished diamonds and second in gold jewellery, silver jewellery and lab grown diamond. India has signed an FTA with the UAE which will further boost exports and is expected to reach the target of US$ 52 Billions.the Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and nil.


Indias gems and jewellery export sector which is one of the largest in the world contributed ~27% to the global jewellery consumption in 2019. The market size of the global gems and jewellery sector is likely to expand to US$ 103.06 billion between 2019 and 2023. Indias gems and jewellery exports are expected to reach US$ 100 billion by 2025. Globally, India was the top exporter of diamonds with a share of 20.6% in 2020. The Government of India is aiming at US$ 70 billion in jewellery export in the next five years (until 2025), up from US$ 35 billion in 2020.

From April-July 2022, Indias gems and jewellery exports were at US$ 13.36 billion, a 5.63% rise compared to the same period the previous year. In FY22, cut and polished diamonds accounted for the highest share of exports (62.42%), followed by gold jewellery (23.57%) and silver jewellery (6.95%). In April 2022, Indias overall gems and jewellery exports was at US$ 3.23 billion.

In July 2022, India imported gems & jewellery worth US$ 3.12 billion. According to the Gem and Jewellery Export Promotion Council, gold bar imports stood at US$ 1,372 million and Gold jewellery stood at US$ 166.75 million between April-October 2021. Indias gold demand stood at 797.30 tonnes in 2021 and is expected to be in a range of 800-850 tonnes by 2022.

Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC.

In the fourth quarter of 2021, demand for gold rose by 93% over the same period a year ago to 265 tonnes. The second quarter of 2021 has been better for businesses as establishments were better prepared for lockdowns compared with 2020. Total jewellery demand in terms of volume increased by 25% YoY to 55 tonnes in the second quarter of 2021. Revised SEZ act is also expected to boost exports of gems and jewellery.

India has 10 special economic zones (SEZ) for gems & jewellery. These zones have more than 500 manufacturing units, which contribute 30% to the countrys total exports.

The Government has permitted 100% FDI in the sector under the automatic route, wherein the foreign investor or the Indian company do not require any prior approval from the Reserve Bank or Government of India. The Government has made hallmarking mandatory for gold jewellery and artefacts and a period of one year is provided for its implementation.

As per Union Budget 2021, the Gem and Jewellery Export Promotion Council has proposed a reduction in import duty on cut and polished diamonds to 2.5%, from the existing 7.5%, in order to double exports of gems & jewellery to US$ 70 billion by 2025.

Cumulative FDI inflows in diamond and gold ornaments in India stood at US$ 1,213.05 million between April 2000-March 2022, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

The Minister for Commerce & Industry, Textiles, Consumer Affairs and Food & Public Distribution Shri Piyush Goyal today said the Gems & Jewellery sector is expected to achieve export target of $40 Billion this year. He said the sector is expected to register growth of 6.5% over the pre-Covid levels. Shri Goyal was addressing the Inaugural Ceremony of India International Jewellery Show (IIJS) Signature 2022, organised by the Gem and Jewellery Export Promotion Council (GJEPC).

Budget 2022 has paved the road for the sector to grow & expand Indias footprint in Global Gems & Jewellery trade:

? Reduction in import duty on cut & polished diamonds from 7% to 5%

? Extension of Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs up to March 2023. (Over 90% of units in G&J sector are MSMEs) ? Acceptance of personal surety bonds in place of bank guarantee for import of gold ? Replacement of SEZ Act with a new SEZ regime ? Simplified regulatory framework for e-commerce in the next few months will facilitate G&J exports through e-commerce,


Your company is engaged in trading of gems and Jewellery and dealing in Diamonds and colored stones (precious, semi-precious and synthetic), Pearls, Jewellery (Plain gold, studded, silver) products.

Presently the income of the company has come from the trading of Diamonds.


Company is planning to explore in Gems and Jewellery industry, The Gems and Jewellery sector is among the largest and leading market in the world. Gems and Jewellery have epitomized heritage, aesthetics, culture and social status throughout the world across time. The gems and jewellery sector can be categorized into the following sub sectors:

? Gemstones : Diamonds and colored stones (precious, semi-precious and synthetic)

? Jewellery : Plain gold, studded, silver Pearls


The financial statement has been prepared in accordance with the requirement of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss Accounts and other financial statements forming part of this annual report.


The Company has proper and adequate internal control system commensurate with the size of the business operations. The audit committee reviews the implementation of management policies to ensure that transaction has been accurately recorded and promptly reported.


The Company regards its human resources as amongst its most valuable assets and proactively reviews policies and processes by creating a work environment that encourager initiative, provides challenged and opportunities and recognizes the performance and potential of its employees attracting and retaining the best manpower available by providing high degree of motivation.

Your Company believes in trust, transparency & teamwork to improve employees productivity at all levels.


Investors are cautioned that this discussion contain ns statements that involve risks and uncertainties. Words like anticipate, believe, estimate, intend, will, expect and other similar expressions are intended to identify such forward looking statements. The Company assumes no responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Besides, the Company cannot guarantee that these as assumptions and expectations are accurate or will be realized and actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements.

By order of the Board of Directors
For, Equilateral Enterprises Limited
(Formerly Known as: Surya Industrial Corporation Limited)
Registered office: Sd/- Sd/-
B-9, Industrial Estate Naitik Kumar Shah Pratik Kumar Mehta
Partapur, Meerut, UP 250 103 Director Managing Director
DIN 06902635 DIN-06902637
Place: Surat
Date: 08-09-2022