Market Size: More than Contributes

Market Size US$ 100 Billion

by 2025
300,000 gems
and jewellery
about 7% to
India's GDP
players

Sector
Composition
Contributes
about 7% to
Employs over
4.64 Million Key
India's GDP People
Trends
Income Statement

(All Amounts in Indian Rupees)

Particulars FY 2018 FY 2019 FY 2020 FY 2021
Revenue from Operations 101,023,511 112,787,640 121,280,526 86,740,300
Other Income 181,641 533,113 3,065,566 2,095,200
Total Income 101,205,152 113,320,753 124,346,092 88,835,500

Expenses
Cost of Material Consumed 44,046,521 47,693,675 57,480,473 36,370,347
Employee Benifit Expenses 19,448,739 20,881,357 25,066,398 23,776,200
Other Expenses 19,788,071 26,167,142 30,818,573 42,154,555
Total Expenses 83,283,331 94,742,174 113,365,444 102,301,102

EBITDA 17,921,821 18,578,579 10,980,648 (13,465,602)

Depreciation & Amortization 2,518,723 2,542,388 2,582,554
EBIT 15,403,098 16,036,191 10,980,648 (16,048,156)
Finance Expenses 9,264,108 9,570,559 8,448,668 9,042,887
PBT 6,138,990 6,465,632 2,531,980 (25,091,043)
Tax
Current Tax 858,012 2,345,537 10,120 1,032,215
Provision for Earlier Years 0 236,272
Deffered Tax 615,424 (850,230) 869,583
Total 1,473,436 1,731,579 10,120 1,901,798
PAT 4,665,554 4,734,053 2,521,860 (26,992,841)

Balance Sheet

(All Amounts in Indian Rupees)

Particulars FY 2018 FY 2019 FY 2020 FY 2021
Equity and Liabilities
Shareholder's Fund
Share Capital 2,725,800 2,725,800 2,725,800 2,725,800
Reserves & Surplus 16,309,491 21,043,545 24,208,256 23,565,403
Loss Transfered to BS (26,992,841)
Total 19,035,291 23,769,345 26,934,056 -701,638

Non - Current Liabilities

Long Term borrowings 48,245,292 52,278,578 84,097,311 114,293,340
Differed Tax Liabilities (net) 1,703,276 869,582 869,583 500,320
Other Long Term Liabilities 1,060,483 211,793 9,226,430 5,200,420
Total 51,009,051 53,359,953 94,193,323 119,994,080

Current Liabilities
Short Term Borrowings 5,443,442 9,973,512 2,200,484
Trade Payables 41,601,171 38,283,634 14,632,604 13,236,544
Other Current Liabilities 33,091,108 43,998,919 (1,826,384) 1,255,620
Short Term Provisions 3,043,513 5,982,863 (1,590) 4,200,540
Total 83,179,234 98,238,928 12,804,631 20,893,188

Total Liabilities 134,188,285 151,598,881 106,997,954 140,887,268

Total 153,223,576 175,368,226 133,932,010 140,185,630

Assets
Non-Current Assets
Fixed Assets
Tangible Assets 24,944,526 28,266,681 29,971,427 24,762,300
Non-Current Investments 24,596,306 24,596,306 24,596,306 24,596,306
Long Term Loans & Advances 507,700 390,000 170,000
Other Non-Current Assets 6,256,463 4,952,116 25,904 3,500,874
Total 56,304,995 58,205,103 54,593,637 53,029,480

Current Assets
Inventories 45,556,890 59,008,500 61,548,540 47,598,540
Trade Recievables 40,383,437 42,553,779 10,866,224 24,578,940
Cash and Cash Equivalents 2,355,125 591,926 276,860 3,353,213
Short Term Loans and Advances 8,263,825 14,288,822 133,671 11,004,587
Other Current Assets 359,304 720,096 6,513,078 620,870
Total 96,918,581 117,163,123 79,338,373 87,156,150

Total Assets 153,223,576 175,368,226 133,932,010 140,185,630

Check 0 0 0 0

Total Debt 53,688,734 62,252,090 84,097,311 116,493,824

Total Fixed assets 24,944,526 28,266,681 29,971,427 24,762,300
Cash Flow Statement

Particulars FY 2018 FY 2019 FY 2020 FY 2021

Cash flow from operating activities
Profit transered to reserve 4,665,554 4,734,053 2,521,860 -26,992,841
add: non-cash and non-operating expenses
depreciaton 2,518,723 2,542,388 2,547,888 2,582,554
interest 9,264,108 9,570,559 8,448,668 9,042,887

Adjustment for working capital

Inventory 45,556,890 13,451,610 2,540,040 -13,950,000
debtors 41,601,171 -3,317,537 -23,651,030 -1,396,060
creditors 40,383,437 2,170,342 -31,687,555 13,712,716
Cash flow from operating activities -27,890,771 -2,092,489 19,014,901 -16,526,176

Cash flow from investing activities

Non Current Investments -24,596,306 0 0 0

Cash flow from investing activities -24,596,306 0 0 0

Cash flow from financing activities

Debt drawnout/(debt repaid) 53,688,734 8,563,356 21,845,221 32,396,513
Interest paid 9,264,108 9,570,559 8,448,668 9,042,887
Cash flow from financing activities 44,424,626 -1,007,203 13,396,553 23,353,626

Total cash flow during the year -8,062,451 -3,099,692 32,411,454 6,827,450
Add: opening balance 0 -8,062,451 -11,162,143 21,249,311
Closing cash balance -8,062,451 -11,162,143 21,249,311 28,076,761
Ratio Analysis

Particulars FY 2018 FY 2019 FY 2020 FY 2021

EBITDA Margin 18% 16% 9% -16% Decreasing
EBIT Margin 15% 14% 9% -19% Decreasing
Net Profit Margin 5% 4% 2% -31% Decreasing

Return on Capital Employed 9% 8% 3% -23% Decreasing

Interest Coverage 1.66 1.68 1.30 -1.77

Receivable Turnover Ratio 2.5 2.7 11.2 3.5

Inventory Turnover Ratio 2.2 1.9 2.0 1.8
Payables Turnover Ratio 2.4 2.9 8.3 6.6
Fixed Asset Turnover Ratio 4.0 4.0 4.0 3.5
Comments
Continuosly decreasing because Expenses are increasing at higher rate than Total revenue
Revenue is not increasing as compared to expenses
Finance cost is increasing but profit is declining

Profit is declining but debt is increasing

Company must reduce its debts

Revenue Assumptions

Particulars FY 2018 FY 2019

Revenue from Operations 101,023,511 112,787,640
Add Revenue Growth Due to new staff
Total Revenue from Operation 101023511 112787640

Expense Assumptions

Particulars FY 2018 FY 2019

Cost of Material Consumed % Revenue 44% 42%
Employee Benifit Expenses % Revenue 19% 19%
Other Expenses % Revenue 20% 23%

Capex
Expense towards digitalisation of showroom

Salary of new digital marketing staff

Depreciation and amortization 10% 9%

Finance Cost 17% 15%

Working Capital

Particulars FY 2018 FY 2019

Receivable Turnover Ratio 2.5 2.7
Inventory Turnover Ratio 2.2 1.9
Payables Turnover Ratio 2.4 2.9
Fixed Asset Turnover Ratio 4.0 4.0

Cost of capital/Equity 10%

Cost of debt 8% Costr of debt with effect of tax
Tax 25%
Terminal / long term growth rate 2% Weight of debt
Equity 2,725,800 Weight of equity
Debt 116,493,824
D/E 42.7374803727346

WACC 6.09%
 Industry Growth Rate 15%
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
121,280,526 86,740,300 99,751,345 114,714,047 131,921,154 151,709,327 174,465,726
2,800,000 2,800,000 2,800,000 2,800,000 2,800,000
121280526 86740300 102551345 117,514,047 134,721,154 154,509,327 177,265,726

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

47% 42% 44% 44% 44% 43% 44%
21% 27% 20% 20% 20% 20% 20%
25% 49% 25% 25% 25% 25% 25%

700000
500000
Salary Growth rate 6%
2,800,000 2,968,000 3,146,080 3,334,845 3,534,935

0% 10% 10% 10% 10% 10% 10%

10% 8% 8% 8% 8% 8% 8%

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

11.2 3.5 5.0 5.6 6.3 5.1 5.5
2.0 1.8 2.0 1.9 1.9 1.9 1.9
8.3 6.6 5.1 5.7 6.4 5.9 5.8
4.0 3.5 3.9 3.9 3.8 3.8 3.8

str of debt with effect of tax 6%

eight of debt 97.71%

eight of equity 2.29%
Income Statement

Particulars FY 2018 FY 2019

Revenue from Operations 101,023,511 112,787,640
Other Income 181,641 533,113
Total Income 101,205,152 113,320,753

Expenses
Cost of Material Consumed 44,046,521 47,693,675
Employee Benifit Expenses 19,448,739 20,881,357
Other Expenses 19,788,071 26,167,142
Total Expenses 83,283,331 94,742,174

EBITDA 17,921,821 18,578,579

Depreciation & Amortization 2,518,723 2,542,388
EBIT 15,403,098 16,036,191
Finance Expenses 9,264,108 9,570,559
PBT 6,138,990 6,465,632
Tax
Current Tax 858,012 2,345,537
Provision for Earlier Years 0 236,272
Deffered Tax 615,424 (850,230)
Total 1,473,436 1,731,579
PAT 4,665,554 4,734,053

Balance Sheet

(All Amounts in Indian Rupees)

Particulars FY 2018 FY 2019
Equity and Liabilities
Shareholder's Fund
Share Capital 2,725,800 2,725,800
Reserves & Surplus 16,309,491 21,043,545
Loss Transfered to BS
Total 19,035,291 23,769,345

Non - Current Liabilities

Long Term borrowings 48,245,292 52,278,578
Differed Tax Liabilities (net) 1,703,276 869,582
Other Long Term Liabilities 1,060,483 211,793
Total 51,009,051 53,359,953
Current Liabilities
Short Term Borrowings 5,443,442 9,973,512
Trade Payables 41,601,171 38,283,634
Other Current Liabilities 33,091,108 43,998,919
Short Term Provisions 3,043,513 5,982,863
Total 83,179,234 98,238,928

Total Liabilities 134,188,285 151,598,881

Total 153,223,576 175,368,226

Assets
Non-Current Assets
Fixed Assets
Tangible Assets 24,944,526 28,266,681
Non-Current Investments 24,596,306 24,596,306
Long Term Loans & Advances 507,700 390,000
Other Non-Current Assets 6,256,463 4,952,116
Total 56,304,995 58,205,103

Current Assets
Inventories 45,556,890 59,008,500
Trade Recievables 40,383,437 42,553,779
Cash and Cash Equivalents 2,355,125 591,926
Short Term Loans and Advances 8,263,825 14,288,822
Other Current Assets 359,304 720,096
Total 96,918,581 117,163,123

Total Assets 153,223,576 175,368,226

Check 0 0

Cash Flow Statement

Particulars FY 2018 FY 2019

Cash flow from operating activities
Profit transered to reserve 4,665,554 4,734,053
add: non-cash and non-operating expenses
depreciaton 2,518,723 2,542,388
interest 9,264,108 9,570,559

Adjustment for working capital

Inventory 45,556,890 13,451,610
debtors 41,601,171 (3,317,537)
creditors 40,383,437 2,170,342
Cash flow from operating activities (27,890,771) (2,092,489)

Cash flow from investing activities

Non Current Investments (24,596,306) -

Cash flow from investing activities (24,596,306) -

Cash flow from financing activities

Debt drawnout/(debt repaid) 53,688,734 8,563,356
Interest paid 9,264,108 9,570,559
Cash flow from financing activities 44,424,626 (1,007,203)

Total cash flow during the year (8,062,451) (3,099,692)

Add: opening balance - (8,062,451)
Closing cash balance (8,062,451) (11,162,143)

Total current assets

total current liabilities
WC
Change in WC
 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
121,280,526 86,740,300 102,551,345 117,514,047 134,721,154 154,509,327
3,065,566 2,095,200 1,468,880 1,790,690 2,105,084 1,864,963
124,346,092 88,835,500 104,020,225 119,304,737 136,826,238 156,374,290

57,480,473 36,370,347 44,920,394 51,533,992 59,607,749 67,146,565

25,066,398 23,776,200 23,310,269 23,502,809 26,944,231 30,901,865
30,818,573 42,154,555 26,837,836 29,378,512 33,680,288 38,627,332
113,365,444 102,301,102 95,068,500 104,415,313 120,232,268 136,675,762

10,980,648 (13,465,602) 8,951,725 14,889,423 16,593,970 19,698,528

2,582,554 2,698,623 2,749,666 2,730,416 2,663,734
10,980,648 (16,048,156) 6,253,102 12,139,757 13,863,554 17,034,794
8,448,668 9,042,887 8,176,573 7,176,506 6,301,447 5,535,771
2,531,980 (25,091,043) (1,923,471) 4,963,251 7,562,107 11,499,023

10,120 1,032,215

869,583
10,120 1,901,798 480,868 1,240,813 1,890,527 2,874,756
2,521,860 (26,992,841) (2,404,338) 3,722,438 5,671,580 8,624,267

l Amounts in Indian Rupees)

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

2,725,800 2,725,800 2,725,800 2,725,800 2,725,800 2,725,800

24,208,256 23,565,403 (5,831,776) (2,109,338) 3,562,242 12,186,509
(26,992,841)
26,934,056 -701,638 -3,105,976 616,462 6,288,042 14,912,309

84,097,311 114,293,340 100,006,673 87,505,838 76,567,609 66,996,658

869,583 500,320 985,690 806,294 790,472 770,694
9,226,430 5,200,420 3,924,781 4,640,856 5,748,122 4,878,545
94,193,323 119,994,080 104,917,144 92,952,988 83,106,202 72,645,896
 2,200,484 2,200,484 2,200,484 2,200,484 2,200,484
14,632,604 13,236,544 20,291,169 20,578,985 21,045,372 26,056,706
(1,826,384) 1,255,620 31,805,673 34,283,461 16,379,593 20,931,087
(1,590) 4,200,540 3,306,332 3,372,036 21,227,107 21,014,900
12,804,631 20,893,188 57,603,657 60,434,966 60,852,556 70,203,176

106,997,954 140,887,268 162,520,801 153,387,954 143,958,758 142,849,073

133,932,010 140,185,630 159,414,825 154,004,416 150,246,801 157,761,382

29,971,427 24,762,300 26,986,233 27,496,660 27,304,155 26,637,337

24,596,306 24,596,306 24,596,306 24,596,306 24,596,306 24,596,306
170,000 355,900 355,900 355,900 355,900
25,904 3,500,874 3,683,839 3,040,683 2,562,825 3,197,055
54,593,637 53,029,480 55,622,279 55,489,550 54,819,186 54,786,599

61,548,540 47,598,540 51,782,358 61,168,383 70,035,916 80,815,401

10,866,224 24,578,940 20,673,206 21,077,473 21,362,084 30,338,278
276,860 3,353,213 20,860,920 5,329,714 (5,892,277) (18,919,573)
133,671 11,004,587 8,422,726 8,462,452 7,005,859 8,723,906
6,513,078 620,870 2,053,337 2,476,845 2,916,033 2,016,771
79,338,373 87,156,150 103,792,547 98,514,866 95,427,614 102,974,784

133,932,010 140,185,630 159,414,826 154,004,416 150,246,801 157,761,382

0 0 0 0 0 0

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025

2,521,860 (26,992,841) (2,404,338) 3,722,438 5,671,580 8,624,267

2,547,888 2,582,554 2,698,623 2,749,666 2,730,416 2,663,734

8,448,668 9,042,887 8,176,573 7,176,506 6,301,447 5,535,771
 2,540,040 (13,950,000) 4,183,818 9,386,025 8,867,533 10,779,485
(23,651,030) (1,396,060) 7,054,625 287,816 466,388 5,011,334
(31,687,555) 13,712,716 (3,905,734) 404,267 284,611 8,976,194
19,014,901 (16,526,176) 15,247,399 4,146,133 6,017,687 2,079,426

(0) 0 - - - -

(0) 0 - - - -

21,845,221 32,396,513 (14,286,668) (12,500,834) (10,938,230) (9,570,951)

8,448,668 9,042,887 8,176,573 7,176,506 6,301,447 5,535,771
13,396,553 23,353,626 (22,463,240) (19,677,340) (17,239,677) (15,106,722)

32,411,453 6,827,451 (7,215,841) (15,531,206) (11,221,990) (13,027,296)

(11,162,143) 21,249,310 28,076,761 20,860,920 5,329,714 (5,892,277)
21,249,310 28,076,761 20,860,920 5,329,714 (5,892,277) (18,919,573)

103,792,547 98,514,866 95,427,614 102,974,784

57,603,657 60,434,966 60,852,556 70,203,176
46,188,890 38,079,901 34,575,058 32,771,607
46,188,890 -8,108,989 -3,504,842 -1,803,451
FY 2026
177,265,726
1,807,404
179,073,130

77,713,082
35,453,145
44,316,431
157,482,659

21,590,471
2,710,610
18,879,862
4,865,805
14,014,057

3,503,514
10,510,543

FY 2026

2,725,800
22,697,052

25,422,852

58,622,075
838,287
4,798,076
64,258,439
 2,200,484
30,701,244
25,849,953
18,991,128
77,742,809

142,001,248
167,424,100

27,106,097
24,596,306
355,900
3,121,101
55,179,403

91,644,916
32,325,095
(22,244,796)
8,153,736
2,365,746
112,244,697

167,424,100

FY 2026

10,510,543

2,710,610
4,865,805
 10,829,515
4,644,538
1,986,817
9,915,163

(8,374,582)
4,865,805
(13,240,387)

(3,325,224)
(18,919,573)
(22,244,796)

112,244,697
77,742,809
34,501,888
1,730,280
 1 2 3 4 5
Calculate FCFF

EBIT(1-Tax) 4,689,826 9,104,818 10,397,666 12,776,096 14,159,896

Add:Dep 2,698,623 2,749,666 2,730,416 2,663,734 2,710,610
Less:change in WC 46,188,890 -8,108,989 -3,504,842 -1,803,451 1,730,280
Less:Capex 1200000 0 0 0 0
FCFF -40,000,440 19,963,473 16,632,923 17,243,280 15,140,225
Year 1 2 3 4 5
Discounting factor 0.942582984 0.8884627 0.83744981 0.78936594 0.7440429
Discounting FCFF -37,703,734 17,736,800 13,929,239 13,611,258 11,264,977
Total discounted value 299,674,513
less: debt 116,493,824
DCF Value of common equity 183,180,689

Terminal / long term growth rate 2%

WACC 6.09%
TV

377,445,940
5
0.744042901
280,835,972

Sensitivity analysis row-wacc column-terminal growth rate

183,180,689 7% 8.00% 9% 10.00% 11% 12.00%
0%
0.50%
1%
1.50%
2%
2.50%
3%
3.50%
4%
lumn-terminal growth rate
13% 14.00%