INTERNATIONAL DIAMOND SERVICES LIMITED
ANNUAL REPORT 2007-2008
Your Director have pleasure in presenting the Nineteenth Annual Report
alongwith the audited Statement of Accounts for the year ended 31st March,
(Rs. In lakhs)
FINANCIAL RESULTS 2007-2008 2006-2007
Income 37.76 25.14
Depreciation 7.12 8.43
Profit/ Loss before Tax (30.73) (86,27)
Provision for Tax & Deferred Tax 0.34 11.31
Prior Year Adj. 0 (.06)
Prov. for Retirement benefit W/Back 0.15 .03
Profit/(Loss) after tax (30.49) (74,98)
Balance Profit B/f (84,24) (9.26)
Profit available for Appropriation (114.74) (84.24)
Balance carried to Balance sheet (114,74) (84.24)
During the year under review the Company earned a total income of Rs.37.76
Lakh as against Rs.25.14 Lakh in the corresponding year. The company
incurred a net loss of Rs.30.49 Lakh against a net loss of Rs.74.98 Lakh in
the previous year. During the year the export sales was Rs. Nil compare to
Rs.nil in the previous year and domestic sales was Rs.36,46 Lakh compare to
Rs.23.71 lakh in previous year. Due to increased competition, the operating
margin of the Company has decline. Due to timely non-realization of export
proceeds and investment in Stock, the Cash Credit Limit Account with Bank
of India, Parliament Street Branch, New Delhi was declared NPA Account. The
Company is trying to regularize the same by realizing the export proceeds
and disposal of stocks.
Your Directors do not recommend any dividend during the year in view of
Your Director, Shri Praveen Jain & Kushal Jain retire by rotation and being
eligible, offers themselves for reappointment.
Mr. Ajay A. Modi has been resigned as a director from the company w.e.f,
20th June 2008.
*** DELISTING OF SHARES
The equity shares of your company have been delisted from Jaipur Stock
Exchange. The Order of delisting from vododara and Delhi Stock Exchange are
M/S AVS & Co., Chartered Accountants, the Auditors of the Company , retire
at the ensuing Annual General Meeting and being eligible offer themselves
The observation of the Statutory Auditors in their Audit Report are self
explanatory. The same have been noted for future compliance.
The Company has not accepted any fixed deposit during the year ended 31st
SHARE REGISTRY ACTIVITY
In terms of SEBI Circular No. D & CC/HTTC/CIR-15/2002 dated 27 December
2002, M/s Mas Services Pvt. Ltd. A Registrar and Share Transfer Agent
registered with SEBI is the common agency for share registry work.
As per clause 49 of the Listening Agreements with the stock exchange a
Management Discussion and Analysis report on Corporate Governance together
with the Auditors certificate regarding compliance of condition of
Corporate Governance, form part of the Annual Report.
The Board of Director hereby confirm that;
1) In the preparation of the annual account for the ended March 31, 2008,
the generally accepted accounting standard in India have been followed in
all material respects.
2) Accounting policies have been selected and applied consistently and
judgements and estimates made are reasonable and prudent so as to give a
true and fair view of the state of affairs of the company at the end of the
financial year March 31, 2008 and of the loss of the company for that
3) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the company and for prevention
and detection of fraud and other irregularities.
4) The annual account for the year ended March 31, 2008 have been prepared
on a going concern basis.
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUT GO:
Since the company was not engaged in direct manufacturing activity during
the year under review report pertaining to the conservation of energy and
technology absorption is not applicable.
*** FOREIGN EXCHANGE EARNING AND OUT GO:
Foreign Exchange Earning
Exports (FOB) - -
Foreign Exchange Outgo - -
Foreign travel ling - -
Import of Diamond
Export plants and initiative:
Overseas demand for both cut & polished and jewellery has been increasing ,
proving India as the most sought after destination for gems & jewellery in
the world. The Company has taken initiative to renew its old contact with
its buyer. The Company proposes to maintain its relation with overseas
buyers by regular overseas visits and offering competitively priced
PARTICULARS OF EMPLOYEES
There was no such employee in the company during the year whose particulars
under Section 217(2A) of the Companies Act, 1956 are required to be
The Board records its sincere appreciation for the continuing support and
cooperation from bank government authorities, shareholder clients and staff
of the Company.
For and on behalf of the board for
INTERNATIONAL DIAMOND SERVICES LTD.
Place : New Delhi
Date : August 22, 2008.
(ASHOK KUMAR JAIN)
INDUSTRY STRUCTURE & DEVELOPMENT
The global gems and jewellery industry can be divided into the following
sub sectors based on its characteristics and preciousness in terms of price
range, marketability and processing techniques:
Gemstones: Diamond and coloured gemstones (precious, semi-precious and
Jewellery; Plain gold, studded, silver and costume.
The global gems and jewellery sector is worth about $ 150 bn. The key
markets of gems and jewellery reported an increase at a CAGR of 5-10 per
cent across the decade. The global industry is largely unorganized
generally managed as family-owned business entities.
India's gem & jewelleij industry is a rising star of the Indian economy.
The industry has performed extraordinarily well over the past few years and
this growth trend is expected to continue in the years to come. Growing
rapidly, this industry has exhibited remarkable energy and focus,
registering an average growth of 25-30 percent year-on-year. Availability
of skilled manpower , together with liberalized govt. policies catalysed
continuous sectoral growth , making it a leading foreign exchange earner.
The Indian gem and jewellery industry has beaten market expectations
despite the difficult global market conditions and a seve. s pressure on
margins. In 2007-08, it reported the following: 21.05 percent growth in
exports of coloured gemstones in dollar terms and 19.09 percent in rupee
- 6.07 percent growth in export of cut and polished diamonds in dollar
terms and 4.09 percent in rupee terms.
- 6.32 percent growth in gem and jewellery exports in dollar terms and 4,35
percent in rupee terms.
India is a leading producer of finished jewellery and polished stones.
Gemstones and jewellery represents the most significant specialist segment
of Indian retailing , accounting for a high proportion of total retail
spend. According to the Gems and Jewellery Export Promotion Council, the
total jewellery market in India is around USD 13 billion of which diamond
jewellery makes up around 20%. The segment is dominated by very small
family owned retailers and the total size of the market is difficult to
measure. Indian households have traditionally relied on a family jeweller
to provide a quality assurance. Consumer brand awareness is low. Most
purchases take place at festival periods and to celebrate family rituals
such as marriages and births.
Now organized jewellery retailers are increasingly offering brand solutions
to the demand for quality and value as consumers move away from traditional
OPPORTUNITIES & THREATS
Global market is on the growth path. The Indian economy has been also
registering growth of 8% to 9% leading to increased domestic consumption
expenditure. The consumption expenditure is on the rise which is expected
to further boost Indian exports. There are, therefore, good opportunities
for the gems & jewellery business.
Terrorist attacks, hardened rupee and increasing gold and diamond prices
may pose a threat. The potential growth in manufacturing bases in China may
effect the present dominant position of India.
In respect of the domestic sale of gems and jewellery, vast opportunities
are perceived on account of growth in Indian Economy and increase in number
of middlcclass category persons as well as their buying power, Overflodding
of foreign branded products and increase in price of gold may pose a threat
to the industry.
As stated under Opportunities & Threats, the outlook for the gems &
jewellery business is bright.
The exports made and the retail sales achieved during the year are as
(Rs. In lakh) (Rs. In Lakh)
Export Sales - -
Domestic Sales 36.45 23.71
RISK AND CONCERN
Apart from the normal business risks as generally apply to business
organization, the company does not foresee any other serious area of
concern, except the areas underlined under 'opportunities & threats'.
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY
The company has an effective internal control system in place and this is
periodically reviewed for its effectiveness. Cross-functional internal
checks mechanism has been created to ensure compliance of procedures. The
teams constituted for this purpose cover review of business processes. The
audit committee reviews the observations of these teams at regular
FINANCIAL VIS-A-VIS OPERATIONAL PERFORMANCE
The company incurred a net loss of about Rs.74,98 lakh during the year
ended. Highlights for the financial year ended March 31, 2008 are as under:
2007-08 (Rs. In Lakh ) 2006-07 (Rs.In Lakh)
Sales 36.45 23.712
Other Income 1.30 1.43
Profit/(Loss) before Tax (30.72) (86.27)
Net Profit/(Loss) (30.49) (74.98)
Yours company is deeply concerned about the safety, welfare and training of
employees. Employee / employer relations were cordial throughout the year.
As at March 31, 2008, the total number of employees stood at 6.