Indian Jewellery History (Suashish Jewellery Ltd)

INDIAN GEMS AND JEWELLERY INDUSTRY SCENARIO

 India has a glorious historical past in diamonds and has revived the past tradition in the sixties when she entered the fray as a manufacturer exporter of cut and polished diamonds, and later on jewellery as well. After spending initial years in establishing the industry in a defined global market place, India established herself among the top manufacturer and exporter of cut and polished diamonds.  The main reason among others for her excellent growth is attributed to India's skills in converting small diamonds which had so far been discarded as uncuttable into gems.  Further India's advantage is its cheap labour, which gives a comparative price advantage.

 Today the gems and jewellery industry is India's second largest

 foreign exchange earner.

Suashish Jewellery Ltd

Listing Agreements:              Listing agreements entered into by the Company with BSE.

Suashish   Diamonds   Limited   is   a   public   limited  company   incorporated   on October   05,   1988   under   the  Companies Act, 1956    having its registered and corporate office at Mehta Mahal, 11th Floor, 15 Mathew   Road, Opera House, Mumbai 400 004, India.

Promoted by Rameshkumar S Goenka, Suashish Diamonds (SDL) was incorporated in Oct.'88 which imports rough diamonds, cuts and polishes them, and then exports them. Its clientele is spread across the US, Japan, Europe, east Asia and Israel. It is a privileged sight holder of the Diamond Trading Company (DTC), London, whereby it enjoys an uninterrupted supply of raw materials at competitive rates. SDL has been granted Star Trading House status under the export-import policy of the Government of India. It has established a 100% subsidiary  Suashish Diamonds  in Hong Kong. In Jan.'95, SDL came out with a public issue at a premium of Rs. 185, aggregating Rs.113.37 Cr, to set up three diamond cutting and manufacturing units at Ahmedabad; set up a laser processing unit; acquire premises; invest in a subsidiary company and to augment long-term working capital requirements. The total project cost was estimated at Rs.124.51 cr. The company bagged the prestigious award by Gem & Jewellery Export Promotion Council, as the second largest exported of Cut & Polished Diamonds for the year 1998-99 and certificate of merit for outstanding performance in the field of exports of cut & polished diamonds from the Govt. of Maharashtra for the same year. There are 9 subsidiary companies including 3 foreign subsidiaries at the end of financial year 2003-04. Suashish Jewellery Ltd has ceased to be a subsidiary of the company with effect from 07.01.2005.

 Net Foreign Exchange earnings of Gem & Jewellery

 -----------------------------------------------------------------------------------------------

 Year                                                       Net Earning i.e. excess of

                                                               exports over imports

                                                                    (Rs. in Crore)

------------------------------------------------------------------------------------------------

1984-85                                                                                     353.40                      

1985-86                                                                                     369.80                      

1986-87                                                                                     607.40                      

1987-88                                                                                     557.20                      

1988-89                                                                                     1261.10                    

1989-90                                                                                     1078.90                    

1990-91                                                                                     1420.60                    

1991-92                                                                                     1838.90                    

1992-93                                                                                     2045.80                    

1993-94                                                                                     4131.14                                             --------------------------------------------------------------------------------------------------

 

 During the year ended March 1994, Indian exports soared to US $

 4139.26 million - 27% higher than the previous year 1992-93 despite

 the fact that the world has witnessed a recession in the diamond

 industry during the same period.  The average price realisation was

 US $ 260 per carat. During the same period i.e. 1993-94 import of

 rough diamonds increased by 16% over the previous year to US $

 2793.52 million.

 GROWTH

 The export of cut and polished diamonds and the growth rate during

 last 10 years are given in the following table

 ----------------------------------------------------------------------------------------------------

 Year                                 Growth over                              Export Diamonds
                                                                                         (Rs. In Crores)

-----------------------------------------------------------------------------------------------------

 1984-85                              -                                            1172.08     

 1985-86                              + 14.7 %                               1344.25

 1986-87                             + 45.8 %                               1959.73     

 1987-88                             + 24.5 %                                2439.74     

 1988-89                             + 73.7 %                                4238.18     

 1989-90                             + 17.3 %                                4971.93

 1990-91                             -  4.7 %                                  4738.71                

 1991-92                            + 30.0 %                                 6162.64

 1992-93                            + 34.9 %                                  8316.15

 1993-94                            + 37.2 %                                11409.89                            

-------------------------------------------------------------------------------------------------------

 The Compounded Annual Growth Rate (CAGR) of the Indian industry's export of cut and polished diamonds over last 9 years i.e. from 1985-86 to 1993-94 works out to 28.77% p.a. and in the last 3 years i.e. from 1991-92 to 1993-94 it was 34.03% p.a.

 PRESENT BUSINESS

 At present, the Company buys 'Roughs' mainly from DTC and contracts out for cutting and polishing. The entire cut and polished diamonds are then exported to clients all over the world and in particular, to Hong Kong, U.S.A., Japan and Belgium. During the year 1993-94, the laser processing unit of the Company commenced its operations.

 Suashish Diamdeal (India) Limited (SDIL) Suashish Diamdeal (India) Ltd. is a 100% subsidiary company of Suashish Diamonds Limited. It was incorporated as a public limited company on 18th September, 1992 and has become a 100% subsidiary company of Suashish Diamonds Ltd. with effect from 24th May, 1993.The Company has commenced business operations in 1994-95. During the first 5 months ended August '94, the Company has made export of diamonds for Rs. 75.6 lacs apart from local sales of imported gold for Rs. 363.5 lacs. The Company has been issued a bulk licence under the Exim Policy of US,759,588.

 The financial highlights of the subsidiary company are as follows:

 The main objects of the subsidiary company to be purused are

 1.  To act as importers, exporters, manufacturers, processors, wholesalers, distributors, retailers, dealers and indenting agents of diamonds, synthetic stones, gems & jewellery precious and semi-precious stones.

 2.  To carry on, conduct, manage and administer the business of refining, boiling, processing, assorting, cleaning, classifying, clifting, blocking, polishing, preparing, chiselling, kerfing, cleaving, sawing, drilling, bruting through laser or other process cut or uncut coarse and or polished gems, diamonds including industrial diamonds.

 b) Suashish Jewellery Exports Limited (SJEL)  SJEL was incorporated on 28th October, 1992 to act as importers, exporters, manufacturers, wholesalers, distributors, retailers, dealers and indenting agents of jewellery, studded gold jewellery plain gold jewellery gems, diamonds, synthetic stones, precious and semi- precious stones. SJEL has become a subsidiary of SDL from 24th October, 1994. SJEL is setting up a jewellery manufacturing unit at Santacruz Electronics Export Processing Zone. The Company has not commenced commercial production till 31st August, 1994.

 c)        Suashish Diamonds (Hong Kong) Ltd. - Proposed subsidiary  The above Company has been incorporated on 23rd June, 1994 at Hong Kong and the proposed investment by SDL in the shares of the above Company is yet to be made. There is no holding company of Suashish Diamonds Ltd.

 2009 - Suashish Diamonds Ltd has informed that Mr. Mayank Pramodchandra Bajaj has been co-opted as an Additional Director of the Company with effect from June 25, 2009 by means of Circular Resolution passed by the Board of Directors of the Company. Mr. Bajaj shall act as Non-executive and Independent Director of the Company.

NSE:

Listed On                 :16:May:1995

Issue price                : 155

Face Value                : 10

Life time High          :200       7-Jun-95

Life time Low           :12.75    25-Sep-01

  

 Delisted On:

Jan 17,2002  Open16.00  LTP 16.00  Day's Range   16.00 16.45

BSE :

Incorporation Date                  : 05/10/1988

Public Issue Date                    : 27/01/1995

Book Closure Start Date         :23/09/2010

Book Closure End Date          : 29/09/2010

Face Value                              :10.0

Issue price                               : Rs. 185

Market Lot Of Equity Shares  :1

BSE Code                              :526733

BSE Group                            : B

Life time High        : 480   26-Aug-08

Life time Low         : 14     4-Oct-01

Share holders:

(in %)   Dec-10            Sep-10 Jun-10

Promoter          89.43   89.43   89.43

FII       --         --         --

DII       3.56     3.85     3.92

Others  7.01     6.72     6.65

Total    100.00 100.00 100.00

DIVIDEND

04/08/200818/09/2008                        Final18.75%                  54*1.87=100.98

08/03/200721/03/2007                        Interim15%                    54*1.50=081.00

07/04/200622/06/2006                        Final15%                        54*1.50=081.00

07/03/200517/06/2005                        Final15%                          54*1.50=081.00

03/07/2001                                          Final5%                            54*1.50=081.00

11/09/2001                                          Final5%                             54*1.50=081.00

18/04/2000                                          Interim10%                       54*1.00=054.00

18/06/1999                                          Final15%                          54*1.50=081.00

06/1998                                               Final15%                          54*1.50=081.00

                                                                                                          Total=721.98

Share Return:

BSE:

Assumed investment: Rs.10000.

Investment initiated on 1995.

Rs. 10000 worth of shares: 54(Per share Rs.185, 10000/155=54)

As on  28 Feb 2011  return of investment Rs.138.30

(as on 28 Feb 2011 Market price)*54shares=7468.2+721.98(dividend)=8190.18.

Same time Rs.10000 investment in gold.

As on 1995 gold price is Rs.32.43per grm, Rs.10000 worth of gold:308.35(Per grm gold 32.43,10000/32.43=308.35grm rounded of 308)

Return as on  2011 gold price is 1900 per grm (as on feb 2011 market gold price 1900 Per grm)308grm*1900=585200.

GOLD CHART

1994

1995-2010

2011