Académique Documents
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Only 2 (out of total 6) directors on the Management Board are Promoters Directors
3 (of the total 6) directors on the Management Board are independent directors who are eminent
personalities in their chosen field (Law, Management and Finance)
Independent directors head the Audit committee and Nomination & Remuneration committee
These committees review the management adequacy and effectiveness of the internal control
systems and internal audit functions at regular intervals. Besides the above, Audit Committee is
actively engaged in overseeing financial disclosures.
Grant Thornton, one of the worlds leading Audit companies, is statutory auditor of the Company
Company is rated as A (long term) /A1 (short term) by Crisil Limited, subsidiary of Standard and Poors
Aon Hewitt is advising Company in developing more robust HR systems and processes and ensuring that
the company is ready for the next level of growth and expansion
Adequate internal control systems
Our internal auditor, in addition to statutory auditor, also review the processes, operational procedures
and financials disclosures and statements
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Other Initiatives
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Weightage of custom duty is very small in the final sale price of jewellery items and this cost is always passed on to the
consumers. Hence impact is NIL/ minimal
This scheme imposed a condition upon the banks to provide a minimum 20% of their bullion business towards exporters.
This created a shortage of gold in the market and increased premium on the same
However, PCJ already was in exports along with its domestic operations. This made PCJ a preferred customer for all the
bullion banks and ensured it had uninterrupted gold supply even in the time of scarcity. The company was able to procure
gold from the bullion banks at a substantial discount from the market premium which shored up its margins and negated
the increase in finance costs
PCJ used to procure gold under the Gold Lease scheme as it was not only cost effective but also provided it with a
hedging tool
Withdrawal of Gold Lease scheme forced PCJ to shift to debt for gold procurement which increased its finance cost as well
as increased its unhedged exposure. However, the company was able to sustain itself due to its healthy balance sheet,
low leverage and strong cash flows
Now
Company has already started procuring its gold under the Gold Lease scheme and expects to reduce its debt levels to
2013 levels within next 6 months
Diamonds import norms liberalized - This is expected to reduce the diamond prices and improve margins.
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Thank You
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