Rajesh Exports Limited: A Comprehensive Overview of Global Leadership in the Gold Industry and Corporate Governance Practices
Rajesh Exports Limited was established in 1989. The corporation is a world
leader in the gold industry.REL is based in Bangalore, India, and has activities
all around the world. The only corporation in the world with a presence
throughout the full gold value chain, from refining to retailing. REL is the
world's largest gold processor, processing 35% of all gold produced. India's
largest exporter of gold items.
The world's lowest-cost gold jewellery manufacturer. REL has developed several innovative technologies and processes in the manufacture of Jewellery. REL is a professionally managed company committed to the highest standards of corporate governance.
The company's wholesale department in India and the UAE distributes these products to various Jewelry showrooms residing in these markets. REL operates and manages its retailer store chain in Karnataka, India under SHUBH Jewelers brand, which provides various designs for its customers. It has business presence across Europe, Asia, North America and Australia markets. REL is headquartered in Bangalore, Karnataka, India.
Company Values And Philosophy
Our objective is to firmly establish ourselves as a global leader in the value chain of Gold. We are currently the largest constituent of global gold business. We would put all our efforts to ensure that we have a substantial global share in the entire value chain of gold by moving up the value chain by making available globally to the retail consumers, Gold jewellery and investment Gold of the finest quality and designs at the best prices.
The brand is acknowledged forsome of its exclusive features like it is the lowest cost gold jewellery producer in the world and the largest exporter of gold products from India. Furthermore, it has one of the world's biggest active jewellery design database of 29000 designs. It has the lowest gold wastage in the jewellery manufacturing process in the world and has one of the largest and the most advanced R&D facilities in gold refining, bar making and jewellery making.
The R&D facility at Valcambi, Switzerland has many global first's to its credit including manufacturing the first minted gold bar in the world.
The R&D at Bangalore has developed many proprietary jewellery making processes and designs. Across its various manufacturing facilities, Rajesh Exports has a total installed capacity to manufacture 400 tons of world-class gold products per annum including the finest plain and studded jewellery medallions and coins.
Objectives
Rajesh Export Ltd's (REL) objective is to establish itself firmly as a leader in the global jewellery market by manufacturing and marketing the finest quality jewellery to consumers across the world. To achieve this objective REL will put in all required efforts and consequently emerge as a global leader in the field of jewellery.
Rajesh Export Ltd's (REL) objective is to establish itself firmly as a leader in the global jewellery market by manufacturing and marketing the finest quality jewellery to consumers across the world. To achieve this objective REL will put in all required efforts and consequently emerge as a global leader in the field of jewellery.
Board Composition
The following section provides information on Rajesh Exports Ltd's senior management, executives, CEO and key decision makers and their roles in the organization.
Board Meetings, Board Of Directors, Key Managerial Personnel & Committees Of Directors
Board Meeting
The Board of Directors of the Company met seven times during the financial year. The details of various Board Meetings are provided in the Corporate Governance Report. The gap intervening between two meetings of the board is as prescribed in the Companies Act, 2013 (hereinafter "the Act").
Board Committees
The Company has the following Committees of the Board:
Shareholding Patterns/ Information
Promoter Holdings Trend
Total Promoter Holding
Increasing promoter holding is considered good and reflects management's positive view about the future outlook
In last 6 months, promoter holding in the company has almost stayed constant
Low Pledged Promoter Holding
Lower pledged promoter holdings is considered better
Pledged promoter holdings is insignificant
Institutional Holdings Trend
Total Retail Holding
Increasing retail holding can be considered bad as it can reflect that institutions and promoters are selling their stake which is being absorbed by retail investors.
In last 3 months, retail holding in the company has almost stayed constant
Foreign Institutional Holding
Foreign Institutional Holding is quantum of stock held by foreign large-quantities-trading entities. Increasing value indicates growing support and comfort for the stock
In last 3 months, foreign institutional holding of the company has almost stayed constant
CSR Activity Of Rajesh Exports Limited
Rajesh Exports Limited has a strong commitment to corporate social responsibility (CSR) and has actively supported various initiatives in the areas of health, education, and the environment over the years. In order to further increase its focus on CSR, the company has constituted a CSR Committee in compliance with Section 135 of the Companies Act, 2013, which came into effect during the financial year 2014-15.
Corporate Social Responsibility
Rajesh Exports Limited has a strong commitment to corporate social responsibility (CSR) and has actively supported various initiatives in the areas of health, education, and the environment over the years. In order to further increase its focus on CSR, the company has constituted a CSR Committee in compliance with Section 135 of the Companies Act, 2013, which came into effect during the financial year 2014-15.
Corporate Social Responsibilities As per section 135 of Companies Act, 2013, A Company meeting the applicability threshold, needs to be spend atleast 2% of its average net profits for the immediately preceding 3 financial years on CSR Activities. CSR Committee has been formed by the committee as per the Companies Act. The funds are allocated to the activities which are specified in schedule VII of the Companies Act, 2013
CSR Expenditure Shortfall
According to this Act, the company is required to spend a certain percentage of its average net profit on CSR activities. The average Net Profit of Rajesh Exports Limited on a standalone basis during the last three Financial Years amounts to Rs.189.91 crore and 2% of such average Net Profit works out to Rs. 3.80 crore which is the amount of CSR expenditure the Company was required to incur during the Financial Year 2021-22.
As against this, the total amount spent by Rajesh Exports Limited on CSR Projects during FY 2021-22 was Rs.0.16 crore. The reason for the shortfall in CSR expenditure is primarily that the Company did not get adequate number of eligible projects.
Continued Commitment To Education And Skill Development Through Csr Initiatives
Despite this shortfall, Rajesh Exports Limited has made significant contributions to the areas of education and skill development through its CSR initiatives. The company believes that investing in these areas can have a long-term positive impact on the community and is committed to continuing its efforts in the future.
Ongoing Commitment To Csr Despite Shortfall In Expenditure
In conclusion, Rajesh Exports Limited has demonstrated a strong commitment to CSR through its support of various initiatives in the areas of health, education, and the environment. While there was a shortfall in CSR expenditure in the financial year 2021-22, the company is dedicated to continuing its efforts in the future and is committed to implementing and monitoring its CSR policy in compliance with its CSR objectives and policy.
Analysis Of The Research
The company performed excellently well in its export, wholesale and retail business and posted an impressive profit after tax of Rs. 8448.58 million and excellent revenues of Rs. 2583082.15 million in comparison to previous year revenue Rs. 1956001.70 million, in spite of the challenges brought by Covid 19.
Company is concentrating its efforts towards increasing its presence in the retail space to ensure increased profitability, this has yielded results and the profitability of the Company has increased substantially. We are confident that Company will emerge as a dominant retail force in the jewellery sector in the times to come.
The team of the Company will keep working towards further growth of profit margins by aggressively expanding its retail foot print and by adding more and better value added products to its global design portfolio. With its global positioning and with its innovative and relentless efforts Company will aggressively grow in the coming years both in terms of revenue and profit.
We have also been launching new products across different lines and at different price points in the retail segment, regularly, so that our customers have a wide range of products to select from to suit their price points. REL is consistently working towards its goal of being the first and the only global company, which would be seamlessly integrated from mining to consumer in a sizeable manner.
Currently REL is a seamlessly integrated company with a small front end and a large middle end of the operations. REL is working towards strengthening its front end operations, wherein it would be growing its retail presence by increasing the number of its showrooms globally and by launching an E-commerce platform for global distribution of its product.
Opportunities & Threats
There is a huge opportunity to move the gold business from unorganized to organized space in many countries including India and China. The organized segment has tremendous growth prospects. Growing consciousness of branded jewellery, increasing purchasing power in the Tier I & II locations, and increasing demand for diamond jewellery are major opportunities for the next 10 to 15 years. The major threat could be changes in government policy with regard to import and export of gold products.
Risk & Concern
The Company has successfully been in gold business for more than three decades and has developed systems to mitigate most of the perceivable risks. The Company has ambitious expansion plans in retail to increase its profitability, these plans require large scale and meticulous execution capabilities. Even though the company has planned its execution strategy, there would always be a concern and risk of execution.
The world's lowest-cost gold jewellery manufacturer. REL has developed several innovative technologies and processes in the manufacture of Jewellery. REL is a professionally managed company committed to the highest standards of corporate governance.
The company's wholesale department in India and the UAE distributes these products to various Jewelry showrooms residing in these markets. REL operates and manages its retailer store chain in Karnataka, India under SHUBH Jewelers brand, which provides various designs for its customers. It has business presence across Europe, Asia, North America and Australia markets. REL is headquartered in Bangalore, Karnataka, India.
Company Values And Philosophy
Our objective is to firmly establish ourselves as a global leader in the value chain of Gold. We are currently the largest constituent of global gold business. We would put all our efforts to ensure that we have a substantial global share in the entire value chain of gold by moving up the value chain by making available globally to the retail consumers, Gold jewellery and investment Gold of the finest quality and designs at the best prices.
The brand is acknowledged forsome of its exclusive features like it is the lowest cost gold jewellery producer in the world and the largest exporter of gold products from India. Furthermore, it has one of the world's biggest active jewellery design database of 29000 designs. It has the lowest gold wastage in the jewellery manufacturing process in the world and has one of the largest and the most advanced R&D facilities in gold refining, bar making and jewellery making.
The R&D facility at Valcambi, Switzerland has many global first's to its credit including manufacturing the first minted gold bar in the world.
The R&D at Bangalore has developed many proprietary jewellery making processes and designs. Across its various manufacturing facilities, Rajesh Exports has a total installed capacity to manufacture 400 tons of world-class gold products per annum including the finest plain and studded jewellery medallions and coins.
Objectives
Rajesh Export Ltd's (REL) objective is to establish itself firmly as a leader in the global jewellery market by manufacturing and marketing the finest quality jewellery to consumers across the world. To achieve this objective REL will put in all required efforts and consequently emerge as a global leader in the field of jewellery.
Rajesh Export Ltd's (REL) objective is to establish itself firmly as a leader in the global jewellery market by manufacturing and marketing the finest quality jewellery to consumers across the world. To achieve this objective REL will put in all required efforts and consequently emerge as a global leader in the field of jewellery.
Board Composition
The following section provides information on Rajesh Exports Ltd's senior management, executives, CEO and key decision makers and their roles in the organization.
| Sr.No | Name | Designation | Profession |
| 1 | Rajesh Mehta | Executive Chairman | He is responsible for the overall functioning of the company, in addition to being specifically in-charge of the finance and marketing functions. He has an experience of over 35 years in functioning and management of the jewellery trade and has traveled extensively within India and abroad for establishing a strong network in the industry. |
| 2 | Mr. Prashant Mehta | Managing Director | He is in charge of the day-to-day functioning and holds specific charge of the production unit of REL. He has over 35 years of experience in the jewellery business and is recognized as an authority in the production of Gold products. |
| 3 | Mr. G. Shanker Prasad | Non-Executive & Independent Director | Well known Practicing Company Secretary and Cost Accountant. He advises the Board with insight on Company Law-related matters. |
| 4 | Ms. Vijaya Lakshmi | Non-Executive & Independent Director | She has a vast experience in Human Resource Management, and is an asset to the Company on this aspect. |
| 5 | Ms. Asha Mehta | Non-Executive & Independent Director | She is an expert in jewellery retail business.
She has been involved in Retail jewellery business for last 2 decades. |
| 6 | Joseph T. D. | Non-Executive & Independent Director | He has experience over 25 years in administration and management. |
| 7 | Mr. Vijendra Rao | Chief Financial Officer | He has an experience of over 35 years in the field of finance and accounting. He is incharge of financial policies of the Company. |
| 8 | Ms. Nidhi Tulsyan | Company Secretary | She is a qualified Company Secretary and is incharge and head of the Secretarial Department of the Company |
Board Meetings, Board Of Directors, Key Managerial Personnel & Committees Of Directors
Board Meeting
The Board of Directors of the Company met seven times during the financial year. The details of various Board Meetings are provided in the Corporate Governance Report. The gap intervening between two meetings of the board is as prescribed in the Companies Act, 2013 (hereinafter "the Act").
Board Committees
The Company has the following Committees of the Board:
- Audit Committee
- Nomination and Remuneration Committee
- Stakeholders Relationship Committee
- Corporate Social Responsibility Committee
- Risk Management Committee
Shareholding Patterns/ Information
Promoter Holdings Trend
Total Promoter Holding
Increasing promoter holding is considered good and reflects management's positive view about the future outlook
In last 6 months, promoter holding in the company has almost stayed constant
Low Pledged Promoter Holding
Lower pledged promoter holdings is considered better
Pledged promoter holdings is insignificant
Institutional Holdings Trend
Total Retail Holding
Increasing retail holding can be considered bad as it can reflect that institutions and promoters are selling their stake which is being absorbed by retail investors.
In last 3 months, retail holding in the company has almost stayed constant
Foreign Institutional Holding
Foreign Institutional Holding is quantum of stock held by foreign large-quantities-trading entities. Increasing value indicates growing support and comfort for the stock
In last 3 months, foreign institutional holding of the company has almost stayed constant
CSR Activity Of Rajesh Exports Limited
Rajesh Exports Limited has a strong commitment to corporate social responsibility (CSR) and has actively supported various initiatives in the areas of health, education, and the environment over the years. In order to further increase its focus on CSR, the company has constituted a CSR Committee in compliance with Section 135 of the Companies Act, 2013, which came into effect during the financial year 2014-15.
Corporate Social Responsibility
Rajesh Exports Limited has a strong commitment to corporate social responsibility (CSR) and has actively supported various initiatives in the areas of health, education, and the environment over the years. In order to further increase its focus on CSR, the company has constituted a CSR Committee in compliance with Section 135 of the Companies Act, 2013, which came into effect during the financial year 2014-15.
Corporate Social Responsibilities As per section 135 of Companies Act, 2013, A Company meeting the applicability threshold, needs to be spend atleast 2% of its average net profits for the immediately preceding 3 financial years on CSR Activities. CSR Committee has been formed by the committee as per the Companies Act. The funds are allocated to the activities which are specified in schedule VII of the Companies Act, 2013
| Particulars) (Rs. In lakhs) | For the year ending 31.03.2021 (Rs. In lakhs) | For the year ending 31.03.2020 (Rs.In lakhs) |
| Amount required to be spent during the year | 926.60 | 960.09 |
| Amount spent | 13.48 | 17.75 |
CSR Expenditure Shortfall
According to this Act, the company is required to spend a certain percentage of its average net profit on CSR activities. The average Net Profit of Rajesh Exports Limited on a standalone basis during the last three Financial Years amounts to Rs.189.91 crore and 2% of such average Net Profit works out to Rs. 3.80 crore which is the amount of CSR expenditure the Company was required to incur during the Financial Year 2021-22.
As against this, the total amount spent by Rajesh Exports Limited on CSR Projects during FY 2021-22 was Rs.0.16 crore. The reason for the shortfall in CSR expenditure is primarily that the Company did not get adequate number of eligible projects.
Continued Commitment To Education And Skill Development Through Csr Initiatives
Despite this shortfall, Rajesh Exports Limited has made significant contributions to the areas of education and skill development through its CSR initiatives. The company believes that investing in these areas can have a long-term positive impact on the community and is committed to continuing its efforts in the future.
Ongoing Commitment To Csr Despite Shortfall In Expenditure
In conclusion, Rajesh Exports Limited has demonstrated a strong commitment to CSR through its support of various initiatives in the areas of health, education, and the environment. While there was a shortfall in CSR expenditure in the financial year 2021-22, the company is dedicated to continuing its efforts in the future and is committed to implementing and monitoring its CSR policy in compliance with its CSR objectives and policy.
Analysis Of The Research
The company performed excellently well in its export, wholesale and retail business and posted an impressive profit after tax of Rs. 8448.58 million and excellent revenues of Rs. 2583082.15 million in comparison to previous year revenue Rs. 1956001.70 million, in spite of the challenges brought by Covid 19.
Company is concentrating its efforts towards increasing its presence in the retail space to ensure increased profitability, this has yielded results and the profitability of the Company has increased substantially. We are confident that Company will emerge as a dominant retail force in the jewellery sector in the times to come.
The team of the Company will keep working towards further growth of profit margins by aggressively expanding its retail foot print and by adding more and better value added products to its global design portfolio. With its global positioning and with its innovative and relentless efforts Company will aggressively grow in the coming years both in terms of revenue and profit.
We have also been launching new products across different lines and at different price points in the retail segment, regularly, so that our customers have a wide range of products to select from to suit their price points. REL is consistently working towards its goal of being the first and the only global company, which would be seamlessly integrated from mining to consumer in a sizeable manner.
Currently REL is a seamlessly integrated company with a small front end and a large middle end of the operations. REL is working towards strengthening its front end operations, wherein it would be growing its retail presence by increasing the number of its showrooms globally and by launching an E-commerce platform for global distribution of its product.
Opportunities & Threats
There is a huge opportunity to move the gold business from unorganized to organized space in many countries including India and China. The organized segment has tremendous growth prospects. Growing consciousness of branded jewellery, increasing purchasing power in the Tier I & II locations, and increasing demand for diamond jewellery are major opportunities for the next 10 to 15 years. The major threat could be changes in government policy with regard to import and export of gold products.
Risk & Concern
The Company has successfully been in gold business for more than three decades and has developed systems to mitigate most of the perceivable risks. The Company has ambitious expansion plans in retail to increase its profitability, these plans require large scale and meticulous execution capabilities. Even though the company has planned its execution strategy, there would always be a concern and risk of execution.
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