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Shareholder Meeting / Postal Ballot-Scrutinizer''s Report 03-Oct-2019
Pursuant to Regulation 44(3) of the SEBI (Listing obligations and Disclosure Requirements), Regulations, 2015, please find enclosed details of voting results inclusive of e-voting and poll conducted at the 11thAnnual General Meeting of the Company held on Monday, 30th September, 2019 at 11:00 AM at 109 to 112A, 1st Floor, Supermall, Nr. Lal Bunglow, C.G.Road, Ahmedabad 380009, Gujarat, India. Reports of the Scrutinizer pursuant to section 109 of the companies Act, 2013 and Rule , 20 of the Companies (Management and Administration) Rule, 2014 is enclosed herewith. You are requested to take the same on your records. Thanking you, Yours faithfully,
Appointment of Director 22-Aug-2019
inter alia, to consider and approve 1. To fix the date, time and venue of 11th Annual General Meeting. 2. To consider and approve Director's Report for the Financial Year ended 31st March,2019 and draft Notice of 11th Annual General Meeting 3. To Appoint M/s Mukesh h. Shah & Co. (Practicing Company Secretary) as a scrutinizer for E-voting & poll voting of 11th Annual General Meeting. 4. To Approve Resignation of Mr. Jignesh Chandrakant Pandya as a Non-Executive Independent Director of the Company. 5. To Approve Appointment of Mr. Mukesh Shantilal Mandaliya as an Additional Independent Director of the Company and to regularize him in the 11th Annual General Meeting 6. To consider and transit any other business, if any, which may be placed before the Board with the permission of the Chairman.
Resignation of Director 22-Aug-2019
inter alia, to consider and approve 1. To fix the date, time and venue of 11th Annual General Meeting. 2. To consider and approve Director's Report for the Financial Year ended 31st March,2019 and draft Notice of 11th Annual General Meeting 3. To Appoint M/s Mukesh h. Shah & Co. (Practicing Company Secretary) as a scrutinizer for E-voting & poll voting of 11th Annual General Meeting. 4. To Approve Resignation of Mr. Jignesh Chandrakant Pandya as a Non-Executive Independent Director of the Company. 5. To Approve Appointment of Mr. Mukesh Shantilal Mandaliya as an Additional Independent Director of the Company and to regularize him in the 11th Annual General Meeting 6. To consider and transit any other business, if any, which may be placed before the Board with the permission of the Chairman.
Ashapuri Gold Ornament informs about outcome of board meeting 19-Jul-2019

Ashapuri Gold Ornament has informed that the Board of Directors at their Board meeting held on today 19.07.2019, has approved resignation of Bhaveshkumar Jiaysukhlal Patadiya as a Non-Executive independent Director of the Company; and approved Appointment of Rushikesh Hasmukhbhai Patel as an Additional Independent Director of the Company.

The above information is a part of company’s filings submitted to BSE.

Ashapuri Gold Ornament coming with an IPO to raise Rs 29.33 crore 12-Mar-2019

Ashapuri Gold Ornament

  • Ashapuri Gold Ornament is coming out with an initial public offering (IPO) of 57,50,000 equity shares of face value of Rs 10 each at a fixed price of Rs 51 per equity share.
  • The issue will open on March 13, 2019 and will close on March 18, 2019.
  • The shares will be listed on SME Platform of BSE.
  • The share is priced 5.10 times of its face value of Rs 10.
  • Book running lead manager to the issue is Fedex Securities.
  • Compliance Officer for the issue is Prince Saraf.

Profile of the company

The Company was originally incorporated as ‘Ashapuri Gold Ornament Private Limited’ as a private limited company under the provisions of Companies Act, 1956 vide Certificate of Incorporation dated June 17, 2008 issued by the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently, the Company was converted into a public limited Company pursuant to a special resolution passed by the shareholders at the EGM held on January 09, 2019 and consequently the name of the Company was changed to ‘Ashapuri Gold Ornament Limited’ and a fresh certificate of Incorporation was issued by the Registrar of Companies, Ahmedabad dated January 23, 2019.

The Company is engaged in the business of wholesale trading of jewellery. The jewelleries are manufactured on job work basis at Ahmedabad and Rajkot. It is well known and trusted wholesaler of gold jewellery supplier, having showroom of 2945sq. feet on prime location of C.G. Road, Ahmedabad, the newly developed main market for buying Gold and Diamond Jewellery. The design of products is done either in house or by third parties and also gets the Jewellery manufactured on a job work basis. Since the system of hallmarking is legally introduced, Company deals only in jewelry certified by Hallmark. It deals in antique Jewellery too. The company is also in the Trading of Gold Jewellery.

During the year 2018-19, the company had entered in to partnership with Kiranben Dinesh Soni and Alka Jitendra Soni, partner of Blue-Onxy Lifestyle, carrying on business of Branded Readymade Garments having exclusive showrooms at Ahmedabad, Surendranagar, Mehsana and Godhara. The company is a major partner in this venture. Its promoters have a plan to open multiple chains of showrooms of Branded Readymade Garments over a period of time.

Proceed is being used for:

  • Establishing jewellery manufacturing unit
  • Investment in partnership firm
  • Meeting working capital requirements
  • General corporate purposes

Industry Overview

The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 7% of the country’s GDP and 15% to India’s total merchandise exports. It also employs over 4.64 million workers and is expected to employ 8.23 million by 2022. One of the fastest growing sectors, it is extremely export oriented and labour intensive. Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as a focus area for export promotion. 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 world’s largest cutting and polishing centre for diamonds, with the cutting and polishing industry being well supported by government policies. India exports 75% of the world’s polished diamonds, as per statistics from the Gems and Jewellery Export promotion Council (GJEPC). India's Gems and Jewellery sector has been contributing in a big way to the country's foreign exchange earnings (FEEs). The GOI has viewed the sector as a thrust area for export promotion. The Indian government presently allows 100% FDI in the sector through the automatic route.

India's gems and jewellery sector is one of the largest in the world contributing 29% to the global jewellery consumption. The market size of the sector is about $75 billion as of 2018 and is estimated to reach $100 billion by 2025. The sector is home to more than 300,000 gems and jewellery players, contributes about 7% to India’s Gross Domestic Product (GDP) and employs over 4.64 million employees. India's gems and jewellery sector contributes about 15% to India’s total merchandise exports. The overall net exports of gems and jewellery stood at $32.71 billion during FY18 registering a compound annual growth rate (CAGR) of 5.83% over FY05; whereas gems and jewellery imports increased at a CAGR of 7.97% from $11.63 billion in FY05 to $31.52 billion in FY18. India is the world’s largest centre for cut and polished diamonds in the world and exports 75% of the world’s polished diamonds. Today, 14 out of 15 diamonds sold in the world are either polished or cut in India. India exported $16.55 billion worth of cut and polished diamonds in Apr-Nov 2018. India is the largest consumer of gold in the world.

Pros and strengths

Vast experience with sound market knowledge: Its promoters Saremal Soni, Dinesh Soni and Jitendra Soni have been involved in Jewellery business for more than two decades. The Promoters of the Company have a background of jewellery business and are actively involved in the operations of the Company. The top management team is with the company since last 10 years. It gets the benefit of experience from its Promoters and the core management team.

Design, Innovation and Product range: The wide experience of its promoters in the Gold industry helps it to know about the exact requirement of the customers, which in turn helps to design the products accordingly. Its wide range of product offerings caters to diverse customer segments, from the value market to high-end customized jewellery. Its product profile includes antique, traditional, bridal contemporary and combination designs across jewellery lines, usages and price points.

Long term relations with clients: The Company is providing quality products and timely delivery of the products as per the requirement of customers, which in turn has helped the Company to built very strong relations with them and the Company was able to fetchrepetitive orders from the same customers.

Risks and concerns

Working capital intensive business: the company’s business is working capital intensive and the growth of business depends upon the Inventory maintained by the Company. Significant portion of funds of the Company is utilised in Inventory. The Company intends to continue growing by expanding its operation and geographical reach. All these factors require huge inventory and maintain of the inventory in very effective manner. Its inability to maintain sufficient cash flow and credit facility in timely manner could adversely affect its operation and profitability of the Company.

Face significant competition: In India jewellery trading and manufacturing industry is highly divided between organised sector and unorganized sector. If it fail to create a position or its existing position deteriorates, the operating results or financial condition will get adversely affected. Aggressive discounting and marketing by competitors may also adversely impact its performance for a temporary period. It may in future experience increase competition from existing or new wholesale traders of jewellery industry. Due to increase in competition, it may temporarily experience downward pressure on prices, lower demand for its products, reduced margins and a loss of market share, all of which would have an adverse impact on its business and results of operations.

Enters into new business with limited experience: The Company has become partner in Partnership Firm Blue -Onyx Life Style having 80% share in profit. The Partnership firm was started by the Promoters and Promoters group in the year 2016-17 only and the track record of the partnership firm in the readymade business is very limited. The Company is going to invest Rs 180 lakhs from the issue proceeds for the expansion of the show rooms in Cities of Gujarat. If it fails to achieve the expected growth of business in the readymade garment segment then its profitability will be affected.

Outlook

Ashapuri Gold Ornament is engaged in the business of wholesale trading of jewellery. The jewelleries are manufactured on job work basis at Ahmedabad and Rajkot. It is well known and trusted wholesaler of gold jewellery supplier, having showroom of 2945sq. feet on prime location of C.G. Road, Ahmedabad, the newly developed main market for buying Gold and Diamond Jewellery. The design of products is done either in house or by third parties and also gets the Jewellery manufactured on a job work basis. Since the system of hallmarking is legally introduced, Company deals only in jewelry certified by Hallmark. It deals in antique Jewellery too. In addition to the above, it is also in the Trading of Gold Jewellery. On the flip side, the company operates in a highly competitive environment and face competition in its business from organized and unorganized players, which may be adversely affect its business operation and financial condition.

The company is coming out with a maiden IPO of 57,50,000 equity shares of face value of Rs 10 each at a fixed price of Rs 51 per equity share to mobilize Rs 29.33 crore. On the performance front, the total income from operations for the FY 2017-18 was Rs 4,692.92 Lakhs as compared to Rs 3,728.91 Lakhs during the FY 2016-17 showing increase of 25.85%. The increase is due to increase in scale of business. Profit After Tax increased from Rs 3.97 Lakhs for the FY 2016-17 to Rs 7.30 Lakhs in FY 2017-18. The PAT was 0.16% of total revenue. At present the Company is wholesale Jewellery supplier in and around Ahmedabad. The company is in the process of entering in to long term agreement for supply of gold ornament with 3 most reputed jewellery retailers which are multinational well reputed companies and having very good network as well as turnover. Now, the Company has purchased gold from the open market and gets the Jewellery manufactured on job work basis through outside agencies. The Company is planning to start its own Jewellery manufacturing unit at Rajkot on rented premises. It will help the company to increase profitability turnover and also ensures the quality standards.

(Financials in Rs Million)

ParticularsMar 2018Mar 2017
Net Sales469.29 372.89 
Total Income469.29 372.94 
PBIDT6.31 4.36 
PBT1.07 0.52 
PAT0.73 0.40 
Reserves and Surplus65.03 64.30 
Net Worth66.03 65.30 
Total Debt49.17 57.71 
ROCE4.60 2.84 
RONW1.11 0.61 
PATM(%)0.16 0.11 
CPM(%)0.33 0.26 
CEPS15.65 9.61 
Enterprise Value49.78 58.10 

 

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