PAREKH PLATINUM LIMITED
Ladies and Gentlemen,
I have great pleasure in welcoming you to the 13th Annual General Meeting
of your Company. The Directors' report and the audited accounts for the
year 31st March 1995 have been with you for sometime now and with your
permission I take them as read.
REVIEW OF OPERATIONS
The year ended 31st March 1995 has ken an excellent year for the company's
performance and financial results. The turnover has gone up by 104% to Rs.
96.55 crores and Net Profit up by over 173% to Rs. 13.28 crores.
Your company has touched a turnover of around Rs. 100 crores during the
current financial year i.e. during the period April 1995 to 15th September,
1995, which is more than the turnover achieved in the previous whole year.
However, I am confident that even this turnover, highly satisfactory though
it is, will appear to be small to you all when compared in the context of
the expected turnover in the next six months on account of the jewellery
project which has already commenced.
Your company has achieved an export turnover of Rs. 8.90 crores during the
financial year 1994-95.
It also gives me pleasure that the Board of Directors of your company has
decided to increase the dividend to 40% for the year under review namely
1994-95 as against 15% declared for the previous year. I think the
perspective of our operations for the years to come explains this
optimistic approach of our board. I am sure the shareholders will endorse
the recommended dividend.
PROSPECTS AND NEW PROJECTS
Gold, this glittering treasure has enthralled people the world over from
the immemorial. The most common use of Gold all over the world is for
making jewellery. Besides this, gold is bought for investment. It is also
used in the industries for its other properties.
While the enduring physical properties of gold have made it a commodity by
which a person can confidently and successfully cross the financial plights
and difficulties, its glittering malleability makes it suitable for shapes
and forms which are aesthetically beautiful, pleasing to the eye and
satisfying to the heart.
It is worth noting that India Tops the list in the international market for
consuming the largest amount of Gold. As per World Gold Council report for
the year 1994. The estimated consumption of gold is 415 tonnes as against
the overall world demand of 3109 tonnes. The gold business in India is
expected to register a cumulative growth rate of 11% per annum. I hope that
your company will prove itself to be a fitting instrument in Giving a
thrust to the expected growth in demand as well as establish itself as a
leading and major partner in the trade so enhanced.
Your company has to cater to the aesthetic needs of each and every segment
of society. It has, therefore, started manufacturing the exclusive
jewellery as well as hollow light weight jewellery, with your company's
expertise and technical skill gold jewellery would also become accessible
to all homes at a price which they can afford and pay without any pinch or
IMPLEMENTATION OF PROMISED SCHEME AT LAUNCHING OF PRODUCTS
The civil works for the company's jewellery project at Bhat gem & jewellery
complex, District Gandhinagar, Gujarat State are in progress. There has
been some delay in the implementation of the project, due to circumstances
beyond our control. We, however, do not foresee any cost over-run. This
project is likely to be commissioned before the end of the year. However,
your company has commenced production of master alloys, semi finished
products and finished jewellery at its existing Bombay plant.
The Jewellery manufactured by this jewellery plant is under test marketing
and is displayed on the stage for viewing by the shareholders.
The company proposed to launch the jewellery nation wide before the end of
the calender year. On first launching of the products, as promised in the
Directors' report, your Directors have worked out a scheme of offering a
special discount to each and every member of your company. Accordingly a
special discount of 7.5% on the purchases made by them of company's
jewellery upto Rs. 50,000 will be given. It is needless to say that this
discount, which covers even the price of the gold is substantial in
of precious metals in general and of gold in particular. I have no doubt
that this humble gesture on the part of the company would be welcomed by
you as cementing further our mutual bonds, and the members will avail this
The Company has initiated action for acquiring space for Company's showroom
in the major cities of the country. The Company has also started
negotiations with prospective franchisees with the intention to make the
jewellery available throughout the country.
I am further pleased to announce that Parekh Micro Electronics (India)
Ltd., our associate company which is having its factory situated at
Gandhinagar in Gujarat has commenced production of thick film materials in
technical collaboration with Du Pont, U.S.A. The Company has also entered
into technical collaboration with Osram Sylvania Inc, USA, formerly known
as GTE Corporation for manufacture of electronic phosphors and it has
stared implementing the project. The Company is also setting up a project
for manufacture of chip resistors and resistor networks.
I am grateful to our members for their overwhelming response to the
Company's Rights Cum Public Issue of Equity Shares floated during April
1995. I would like to thank all the employees of your company for their
dedication and commitment as also to members of the Board who continue to
seer your company with Sagacity and Foresight.
The Co-operation and support received by us from the Government at the
centre as well as at the States, Financial Institutions, Banks and our
Business Associates have been a source of Great Strength to us.
I would like to thank them all and our shareholders for their confidence
and support extended to us.
Thank you very much.
Shri. J.J. Parekh