MANAGEMENT DISCUSSION AND ANALYSIS Your Directors are pleased to report the record breaking results of the company for the year 2014-15. The company performed excellently well in its export, wholesale and retail business and posted an imbrssive profit after tax of Rs. 6549 million and record breaking revenues of Rs. 504629 million, as compared to Rs 291972 Million during the last year, witnessing a growth of 72.83%. Net Profit before Tax for the year ended March 31, 2015 stood at Rs 7261 Million, as compared to Rs 4045 Million in the last year, witnessing a growth of 79.51%. Net Profit after Tax for the year ended March 31, 2015 stood at Rs 6549 Million, as compared to Rs 3596 Million in the last year, witnessing a growth of 82.12%. Company's plans for expansion are going unabated. Last year Company formed a Division for foraying into Gold Finance Business, by utilizing its Existing retail network of 81 retail showrooms and to apply for Regulatory Permissions and the required licenses for foraying into the Gold Finance Business. Company decided to sign a Share Purchase Agreement with various Shareholders of European Gold Refineries for 100% acquisition of the shares of European Gold Refineries through a Special Purpose Vehicle (SPV) to be formed in Switzerland. Company also decided to form a Subsidiary in Europe to expand the global foot print of the company. Further, Board of Directors have given approval to make acquisition/s in Europe in the range of USD 250 Mln to USD 500 Mln, which would strengthen the backward integration of the company and strengthen the domestic and global brsence of the company in gold business. All of these will further strengthen our resolve to deliver high quality jewellery, on a mine-to-customer basis, at lower rate, and to realize our vision to be the recognized performance leader in the Global jewellery market with World's largest catalogue of jewellery designs. MANAGEMENT The Board of Directors head the Management of the Company, which also includes Whole Time Directors. The Board of Directors are efficiently complemented in the day-to-day functioning by a team of highly qualified professionals with considerable experience and expertise in their respective fields. HUMAN RESOURCES Rajesh Exports realizes the importance of human resources, which it considers next only to capital in the order of importance. The Company has a pool of highly qualified and experienced professionals, who are instrumental in the Company achieving giant strides year after year towards progress. The Company has an HR policy which emphasizes the need for attaining organizational goals through individual growth and development. Staff audit and performance appraisal are the key areas of the Company's HR Policy. DISCLAIMER Statements made in Management Discussion and Analysis report include forward looking statements and may differ from the actual situation. The important factors that would make a difference to the Company's operations include market factors, government regulations and policies, developments within and outside the country etc. For and on behalf of the Board Sd/- RAJESH MEHTA Chairman Place : Bangalore Date : May 28, 2015 |