MIRA INFORM REPORT

Report Date :

24.09.2008

IDENTIFICATION DETAILS

Name :	RENAISSANCE JEWELLERY LIMITED
Registered Office :	Plot No. 36 A & 37, Seepz, Andheri (East), Mumbai - 400 096, Maharashtra
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	04.12.1989
Com. Reg. No.:	11-54498
CIN No.: [Company Identification No.]	U36911MH1989PLC054498
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14877C
PAN No.: [Permanent Account No.]	AACCR2148B
Legal Form :	Public Limited Liability Company. The Company’s shares are listed on the stock exchange.
Line of Business :	Manufacturer and Exporter of Studded Gold Jewellery

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 8460000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company. It is doing well. Payments are correct and as per commitments. Financial position is good. Nothing adverse reported. The company can be considered good for any normal business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long-run.

LOCATIONS

Registered Office / Factory :	Plot No. 36 A & 37, Seepz, Andheri (East), Mumbai - 400 096, Maharashtra
Tel. No.:	91-22-28291019 / 28291458 / 40551200
Fax No.:	91-22-28291699 / 66938457
E-Mail :	nimish.zaveri@renjewellery.com hitesh.shah@renjewellery.com
Website :	http://www.renjewellery.com
Factory 1 :	G-42, GEM & Jewellery, Complex - III, Seepz, MIDC Marol, Andheri (East), Mumbai - 400 096, Maharashtra, India
Factory 2 :	Plot No. 2302, Hill Drive, Talaja Road, Bhavnagar, Gujarat - 364 002, India
Factory 3 :	12 Hari Niwas, K. Mathew Road, Opera House, Mumbai 400004, India

DIRECTORS

Name :	Mr. Niranjan A. Shah
Designation :	Chairman
Name :	Mr. Sumit N. Shah
Designation :	Managing Director
Name :	Mr. Hitesh M. Shah
Designation :	Executive Directors
Name :	Mr. Neville R.Tata
Designation :	Executive Directors
Name :	Mr. Amit C. Shah
Designation :	Directors
Name :	Mr. Bhupen C. Shah
Designation :	Directors
Name :	Mr. Arun S. Shah
Designation :	Independent Directors
Name :	Mr. Veerkumar C. Shah
Designation :	Non Executive and Independent Directors
Name :	Mr. Jitendra M. Shah
Designation :	Independent Directors
Name :	Mr. Vishwas V. Mehendale
Designation :	Non Executive and Independent Director
Name :	Mr. Pramod H. Lele
Designation :	Non Executive and Independent Director
Name :	Mr. Anil K. Chopra
Designation :	Non Executive and Independent Directors

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2008

Category	No. of Shares	Percentage of Holding
A. Promoters Holding
Promoters	9515680	51.83
Relative of Directors	3519440	19.17
Corporate Bodies (Promoter Co.)	80	0.0004
B. Non Promoters Holding Institutional Investors
Mutual Fund	587691	3.20
Insurance Companies	164374	0.90
Other Bodies Corporate	899260	4.90
Cleaning Member	138412	0.75
Non Nationalise Banks	75000	0.41
Foreign Inst. Investors	747975	4.07
Others
Non Resident Indians	34935	0.19
Non Resident (Non Repatriable)	2589	0.01
Public	2673812	14.56
Trusts	192	0.001
Total	18359440	100.00

KEY EXECUTIVES

Name :	Mr. S.S.Narayana
Designation :	Company Secretary
Name :	Ms. Manju Batham
Designation :	Company Secretary and Compliance Officer
Tel No. :	91-22-40551369
Fax No. :	91-22-66938457
E-mail :	ipo@renjewellery.com

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Studded Gold Jewellery

Products :

Product Description	Item Code No. (ITC Code)
Studded Gold Jewellery	711319-02
Cut and Polished Diamonds	710231- 01

PRODUCTION STATUS

Details of Installed Capacities and Actual Production:

Jewellery Division	2007- 2008 Qty. (KGS)	2006 – 2007 Qty. (KGS)
Manufacturing Goods
Installed Capacity	2150	1850
Licensed Capacity	5650	2775
Actual Production	1858	1642

GENERAL INFORMATION

No. of Employees :

About 1500

Bankers :

· Bank Of India

SEEPZ Branch, Behind Seepz Service Centre, Andheri ( East), Mumbai 400 096

· State Bank Of India

SEEPZ Branch, New Bank Building, Andheri ( East), Mumbai 400 096

· Punjab National Bank

SEEPZ Branch, Behind Seepz Service Centre, Andheri ( East), Mumbai 400 096

· ICICI Bank

Offshore Banking Branch, Plot No. 8, Block II, SEEPZ, Andheri (East), Mumbai 400 096.

· The Bank of Nova Scotia

11, Makers Chambers VI, 220, Nariman Point, Mumbai 400 021.

· Saraswat Bank Co-operative Bank Limited

1^st floor, Kimatrai Building, 77/79, Mahashi Karve Road, Marine Lines, Mumbai 400 002.

· Union Bank of India

Facilities :

Secured Loan (As On 31.03.2008)	Rs in Millions
Working capital borrowing from Banks
(Secured by first charge on pari passu basis by way of Hypothecation and / or pledge of company's current assets both Present and future and by way of joint equitable mortgage of Company’s factory premises and fixed machinery and plant, fixtures and Fittings, erected and installed therein and by personal Guarantee of some of the directors).	989.026

Banking Relations :	Satisfactory
Auditors :	J. K. Shah & Company Chartered Accountants
Tel. No.:	3^rd Floor, Flat No. 14, AL-Karim Manzil, 15, Palton Road, Mumbai - 400 001
Mobile No.:	91-22-22615581 / 22620352 / 22620183
Fax No.:	91-22- 2261 9937
Subsidiaries :	· Verigold Fine Jewellery Private Limited Renaissance Retail Venture Private Limited
Associates :	· N. Kumar Diamonds Exports Limited · Fancy Jewellery Private Limited · Renaissance Home Retail Private Limited · Anika Jewellery Private Limited Sumit Diamonds Housefull International Limited

CAPITAL STRUCTURE

AS ON 31.03.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs. 10/- each	Rs.250.000 Millions

(Previous Year: 15000000 Equity Share of Rs.10/- Each)

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
18359440	Equity Shares	Rs. 10/- each	Rs.183.594 Millions

(Previous Year: 6517600 Equity Share of Rs.10/- Each fully paid- up)

Notes:

1. Of the above, 749400 equity share of Rs.10/- each fully paid up were allotted for consideration other than cash
2. Of the above, 11405800 (Previous Year: 4888200) Equity Share of Rs.10/- each have been allotted as fully paid up bonus share by capitalisation of profit and loss accountant

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		183.594	65.176	65.176
2] Reserves & Surplus		1508.976	744.562	540.121
NETWORTH		1692.570	809.738	605.297
LOAN FUNDS
1] Secured Loans		989.026	904.544	575.259
2] Unsecured Loans		0.000	0.000	3.850
TOTAL BORROWING		989.026	904.544	579.109
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2681.596	1714.282	1184.406
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		163.778	167.526	178.712
Capital work-in-progress		6.762	0.000	0.000
INVESTMENT		470.877	12.080	2.060
DEFERREX TAX ASSETS		1.636	3.515	2.252
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	959.067	974.045	830.541
	Sundry Debtors	1015.607	945.724	855.848
	Cash & Bank Balances	73.869	14.402	17.971
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	354.217	105.778	23.012
Total Current Assets		2402.760	2039.949	1727.372
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	326.021	501.754	718.482
	Provisions	38.197	15.774	10.546
Total Current Liabilities		364.218	517.528	729.028
Net Current Assets		2038.541	1522.421	998.344
MISCELLANEOUS EXPENSES		0.000	8.740	3.038
TOTAL		2681.596	1714.282	1184.406

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Sales Turnover [including other income]	4337.523	3883.500	3142.530
Profit/(Loss) Before Tax	183.035	205.428	145.177
Provision for Taxation	5.412	[0.987]	[2.273]
Profit/(Loss) After Tax	177.623	204.441	147.450
Earnings in Foreign Currency :	4325.196	3845.591	3136.700
Imports :
Raw Materials	2773.755	3258.302
Stores & Spares	30.060	28.074	2228.184
Capital Goods	5.404	4.606
Total Imports	2809.219	3290.982	2228.184
Expenditure :
Consumption of Materials	2942.082	3199.623	2500.809
Purchase of Materials for resale	747.230	79.736	0.085
Decretion/ [Accretion] to Inventories	0.000	0.000	179.498
Personal Costs	218.904	168.367	119.296
Manufacturing and Other Expenses	139.485	161.141	124.359
Interest and Financial Charges	81.798	42.686	52.253
Depreciation	24.988	26.515	20.906
Total Expenditure	4154.487	3678.068	2997.206

QUARTERLY RESULTS

PARTICULARS	30.06.2008
Type	1^st Quarter
Sales Turnover	598.000
Other Income	3.400
Total Income	601.400
Total Expenditure	576.500
Operating Profit	24.900
Interest	16.400
Gross Profit	8.500
Depreciation	5.900
Tax	(0.600)
Reported PAT	3.200

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.76	1.05	0.99
Long Term Debt-Equity Ratio	0.00	0.00	0.00
Current Ratio	1.60	1.38	1.37
TURNOVER RATIOS
Fixed Assets	13.77	12.91	12.69
Inventory	4.48	4.27	5.02
Debtors	4.42	4.27	4.35
Interest Cover Ratio	3.24	3.75	3.77
Operating Profit Margin(%)	6.69	7.97	6.95
Profit Before Interest And Tax Margin(%)	6.12	7.28	6.28
Cash Profit Margin(%)	4.68	6.00	5.36
Adjusted Net Profit Margin(%)	4.10	5.31	4.69
Return On Capital Employed(%)	12.07	19.40	18.64
Return On Net Worth(%)	14.19	28.90	27.73

LOCAL AGENCY FURTHER INFORMATION

The company’s fixed assets of important values include Land, Building, Plant and Machinery, Furniture and Fittings, Electrical Installation, Office Equipments, Computers and Vehicles.

DIRECTOR REPORT

Financial highlights 

The Company earned a profit before tax of Rs. 183.035 millions as compared to a profit of Rs. 205.428 millions the previous year.

Use of IPO proceeds 

In December 2007, the Company completed its Initial Public Offer (IPO) in India and listed its shares on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE). Out of the IPO proceeds of Rs.798.64 million, the Company has utilized Rs. 650.48 million up to March 31, 2008 The detailed statement of utilization of fund vis-a-vis IPO objects is as follows: 

(Rs. in million) 

Objects of IPO as projected in the prospectus			Utilisation Till March, 31, 2008	Balance
Sr. No.	Particular	Total
1.	Expansion of Manufacturing capacity at bhavnagar unit (100% EOU)	105.00	10.74	94.26
2.	Expansion of Capacity and modernization of their Mumbai units	35.72	15.40	20.32
3.	Investment in foreign Subsidiary	350.00	353.66	-3.66*
4.	Augmenting working capital requirements	209.25	209.48	-0.23*
5.	Further expansion/General corporate purposes	33.79	--	33.79
6.	To meet expenses of the Issue	64.88	61.20	3.68
	Total	798.64	650.48	148.16

Exchange Rate Fluctuation 

Subsidiaries 

During the financial year under review the had two Indian subsidiaries i.e. Veri-gold Fine Jewellery Private Limited (VFJPL) and Renaissance Retail Venture Private Limited (RRVPL). During the financial year, the company has disinvested its shares in RRVPL and acquired a 1000%o equity capital of Renaissance Jewellery New York, Inc. (RJNY). The Company has also acquired a 100% equity capital of L. J. Creations Private Limited on April 15, 2008. 

Pursuant to Section 212 of the Companies Act, 1956, the Company is required to attach to its Annual Report the Directors' Report and financial statements of its subsidiaries. Since the Company presents audited consolidated financial statements under Indian GAAP in its Annual Report, the Company has applied to the Central Government of India for an exemption from attaching the Directors' Report, Balance Sheet and Profit and Loss Account of its subsidiaries to the Annual Report. The approval from the Central Government in this regard is awaited and in case the exemption under Section 212 (8) of the Act is granted to the Company by the Central Government, the financial statements of the subsidiaries of the Company shall not be attached to the Annual Report of the Company. In that case the Company undertakes that the financial statements of the subsidiary companies for the year ended March 31, 2008 will be made available to the members on request at the Registered Office/Corporate Office of the Company and the same will be kept open for inspection by any member between 10:00 a.m. and 1:00 p.m. on all working days of the Company. 

Honors and recognitions 

The Company has consistently received wide recognition for Quality, Designs, leadership and achievements. 

The GEM and JEWELLERY EXPORT PROMOTION COUNCIL has awarded the Company for outstanding export performance and contribution in the trade Category 'Studded precious metal jewellery exports by units in EPZ/EOU Complexes', during the year 2007-08. 

MANAGEMENT'S DISCUSSION AND ANALYSIS 

Business of the Company: 

They are in the business of manufacture and sale of studded gold, platinum and silver jewellery and are primarily focused on international markets including the USA. They have been in the studded jewellery business for over a decade and operate through three manufacturing units of which two units are located at SEEPZ-SEZ at Mumbai and one 100% EOU unit at Bhavnagar in Gujarat. 

Their product profile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polished diamonds, precious and other semi precious stones which are set in precious metals like gold, platinum and silver. They have a talent base of about 40 designers, who on an average develop about 500 new designs every month. 

 They have been awarded a Certificate of Merit by GJEPC for being the second largest exporter of studded precious metal Jewellery from SEEPZ-SEZ for the year 2005-06. In the year 2004, they were awarded International Supplier of the Year' by Wal-Mart and Rio Tinto Diamonds has conferred us with Business Excellence Model (BEM) in the year 2005 certification. 

Financial Performance: 

The details of the financial performance of the Company are appearing in the Balance sheet, Profit and Loss Account along with other financial statement. Financial Highlights are as under: 

Sales Turnover of Rs. 4330.000 millions compared to Rs. 3848.400 millions which is 12.51% higher compared to the previous year. This increase in sales is mainly on account of their focused entry into newer segments of the Jewellery market such as Bridal and Gemstone jewellery. 

The total operating costs excluding depreciation and interest aggregated to Rs. 4047.700 millions compared to Rs. 3564.100 millions during the previous year. This increase is mainly due to cost of traded goods through newly started Diamond Trading Division. 

The other income was Rs. 7.500 millions as compared to Rs. 22.200 millions in the previous year. 

PBIDT to sales ratio was 6.68% compared to 7.97% in the previous year. 

Profit before tax (PBT) was Rs. 183.000 millions as compared to Rs. 205.400 millions for the previous year. The profit after tax for the year was Rs. 177.600 millions, 13.11% lower as compared to Rs. 204.400 millions for the previous year. The fall in the profit margins is mainly on account of the higher consumption of material. 

Earnings per equity share were Rs. 12.14 for the year as against the EPS of Rs. 15.68 for the previous year. 

 Provisions for Income Tax and deferred tax at Rs. 5.400 millions has been made as per the Income Tax Act 1961 and in accordance with the provision of Accounting Standard AS-22 relating to Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India, as against Rs. 1.000 million during the previous year. 

Industry Overview 

Global Gems and Jewellery industry 

The size of the global gems and jewellery industry has been estimated at 146 billion US dollars at retail prices in 2005. The industry has grown at an average CAGR rate of 5.2% since 2000. Diamond studded jewellery is the largest segment of this industry (2005 sales estimated at USD 69 billion) which constitutes approximately to 48% of the industry sales. The second largest segment is plain gold jewellery segment with total retail sales of USD 60.7 billion, constituting approximately 41% of the total sales. 

Sale of jewellery is concentrated in eight key world markets, which account for about 75% of the total world sales of gems and jewellery. The US is the world biggest market which accounts for approximately 31 % of the total sales. The share of India and China has steadily shown an increase and currently account for 8.3 and 8.9 percent of world sales respectively. 

Under the gems and jewellery segment maximum value is added at the two ends of the value chain, with intermediate segments adding relatively lower value. Diamond cutting and polishing contributes 29% where as jewellery manufacturing contributes 32% to the value in the final product. 

Indian Gems and Jewellery industry 

The gems and jewellery industry is one of the oldest and largest industries in terms of export earnings for India. India today is one of the leader's in processing of near gemstone quality (low caratage) stones. The Gems and Jewellery industry contributes around 15% of India's exports. Exports of Gems and Jewellery aggregated to Rs. 688.30 billion (US$15.55 billion) during FY2006, accounting for 15.1% of India's exports. As per data released by the Gems and Jewellery Export Promotion Council (GJEPC), during FY2006, gold jewellery exports account for 23.2%, rough diamonds 3.4%, and others 2.3% of India's Gem and Jewellery exports. 

The exports of gems and jewellery from India are mainly from the Mumbai port which constitutes 84.4% of the total exports. Mumbai SEEPZ which is a notified SEZ, contributes to around 8.78% of the sale from the Mumbai port. 

With various government initiatives in recent years, export of gold jewellery has increased in recent years. India's export of gold jewellery has grown at CAGR of 25% over the last 8 years (Source: www.gjepc.org) this increase is attributable to healthy growth in demand in key markets especially that of the US. 

US Gems and Jewellery Market 

USA is the world's largest jewellery market - the total US jewellery sales, including watches and fashion jewellery have been estimated at $59 billion in 2005 (2004: $57 billion). In the US, Christmas, Thanksgiving, Valentine's Day and Mother's Day are the important jewellery-buying occasions. The US jewellery market has grown at a compound annual growth rate of 5.7% over the last 25 years. The US retail jewellery industry is competitive and fragmented. The US retail jewellery market includes formats such as department stores, discount outlets, television home shopping, internet retailers and general merchandise, apparel and accessory stores. The largest jewellery retailer is believed to be Wal-Mart Stores, Inc., which includes a wide assortment of costume jewellery. The US diamond jewellery sales are believed to account for about 50% of worldwide diamond jewellery sales. In the US market, diamond jewellery sales accounted for about 55% of total j jewellery sales in the year 2005. In the last ten years the growth in diamond jewellery sales has been more than a third faster than that of the total jewellery market. The US Jewellery market is divided on the basis of store type into two basic segments i.e. Major retail chains and independent mid-range retailers. On the basis of data, around 43.10% and 56.90% of the jewellery market in the US is catered by the Major retail chains and independent retailers respectively. 

(Source: Global jewellery sales and The Indian Gems and Jewellery Sector, July 2006) 

Outlook: 

Global jewellery sales are expected to grow and touch USD 185 billion by 2010 and USD 230 billion by 2015. Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82%. The projected share of industry segments and key consumption market trend shows that by 2015 China and India together will emerge as a market equivalent to the US market. The Middle East will surface as another large market, accounting for close to 9 % of the global jewellery sales by 2015. The industry has a potential to grow up to USD 280 billion by 2015 at a CAGR of 6.7%. 

Segment wise Performance: 

The Company's operations predominantly relate to export of Diamonds and Gold Studded Jewellery. Based on the guiding principle given in the Accounting Standard - 17 'Segment Reporting' issued by the institute of Chartered Accountants of India, the Company's primary segments are Diamonds and Gold Studded Jewellery. 

A detailed statement of segment wise performance is given under notes to the accounts which form part of this Annual Report. Highlights are as follows: 

(Rs. in million) 

Sr. No.	Particular (Rs.)	Diamonds (Rs.)	Jewellery (Rs.)	Total (Rs.)
1.	Revenues	768.478	3561.510	4329.989
2.	Segmental Results	4.300	239.152	243.453
3.	Operating Profit Before Tax (PBT)	--	--	183.035
4.	Profit After Tax (PAT)	--	--	177.623
5.	Segment Assets	143.748	2095.593	2223.141
	Unallocated Assets	--	--	806.474
	Total Assets	143.748	2095.593	3045.816
6.	Segment Liabilities	139.453	183.473	322.927
	Unallocated Liabilities	--	--	1030.318
	Total Liability	139.454	183.473	1353.245

INDUSTRY

Overview

Global Gems and Jewellery industry

The size of the global gems and jewellery industry is estimated at 146 billion US dollars at retail prices in 2005. The industry has grown at an average CAGR rate of 5.2% since 2000 (Source: GJEPC-KPMG Report titled “The Global Gems and Jewellery Industry” (GJEPC-KPMG), 2006). Diamond studded jewellery is the largest segment of this industry (2005 sales estimated at USD 69 billion) which constitutes approx to 48% of the industry sales. The second largest segment is plain gold jewellery segment with total retail sales of USD 60.7 billion, constituting 41% of the total sales.

Global jewellery sales are expected to grow and touch USD 185 billion by 2010 and USD 230 billion by 2015 (Source: GJEPCKPMG Report titled “The Global Gems and Jewellery Industry” (GJEPC-KPMG), 2006).

Indian Gems and Jewellery industry

The Indian domestic diamond jewellery market is estimated at around Rs. 80 billion per annum in retail value (Source: ICRA “The Indian Gems and Jewellery Sector, July, 2006).

The Gems and Jewellery industry is one of the oldest and largest industries in terms of export earnings for India. India today is the one of the leader’s in processing of near gemstone quality (low caratage) stones. The Gems and Jewellery industry contributes around 15% of India’s exports. As per the table, exports of Gems and Jewellery aggregated Rs. 688.30 billion US$15.55 billion) during FY2006, accounting for 15.1% of India’s exports. As per data released by the Gems and Jewellery Export Promotion Council (GJEPC), during FY2006, gold jewellery exports account for 23.2%, rough diamonds 3.4%, and others 2.3%.

Jewellery Exports from India to USA

With various government initiatives in recent years, export of gold jewellery has increased in recent years. India’s export of gold jewellery has grown at CAGR of 25% over the last 8 years (Source: www. gjepc.org) India’s exports of gold jewellery have increased in recent years because of healthy growth in demand in key markets especially that of the US.

USA- Jewellery Market

In terms of consumption demand, USA is the world’s second largest gold jewellery market by volume (around 350 tonnes) and largest by retail value (around $16billion). In the US, Christmas, end of year festivals, Valentine’s Day, Thanksgiving Day and Mother’s Day are the important gold-buying occasions. The total US jewellery sales, including watches and fashion jewellery, are estimated by the US Department of Commerce to have been $59 billion in 2005 (2004: $57 billion). The US jewellery market has grown at a CAGR of 5.7% over the last 25 years.

The US retail jewellery industry is competitive and fragmented. The broader total US retail jewellery market includes formats such as department stores, discount outlets, television home shopping, internet retailers and general merchandise, apparel and accessory stores.

The US diamond jewellery sales are believed to account for about 50% of worldwide diamond jewellery sales. In the US market, diamond jewellery sales account for about 55% of total jewellery sales. In the last ten years the growth in diamond jewellery sales has been more than a third faster than that of the total jewellery market.

BUSINESS

Overview

They are in the business of manufacture and sale of studded gold, platinum and silver jewellery and are primarily focused on international markets including the USA besides marketing their studded jewellery products through their retail stores operated by their subsidiary, Renaissance Retail Venture Private Limited.

They have been in the studded jewellery business for over a decade and operate through three manufacturing units of which two units are located at SEEPZ-SEZ at Mumbai and one 100% EOU unit at Bhavnagar in Gujarat. Besides, their subsidiary Renaissance Retail Venture Private Limited has a manufacturing facility at MIDC, Andheri for catering to the domestic retail market. Their subsidiary, Verigold Fine Jewellery Private Limited has a manufacturing facility for studded jewellery in SEEPZSEZ at Mumbai. Both their subsidiaries are wholly-owned by their Company. In July 2007, they also commenced exports of loose diamonds from their facility situated at Opera House, Mumbai.

Their product profile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polished diamonds, precious and other semi precious stones which are set in precious metals like gold, platinum and silver. They have a talent base of about 40 designers, who on an average develop about 500 new designs every month.

They have been awarded a Certificate of Merit by GJEPC for being the second largest exporter of studded precious metal jewellery from SEEPZ-SEZ for the year 2005-06. In the year 2004, they were awarded ‘International Supplier of the Year’ by Wal-Mart and Rio Tinto Diamonds has conferred us with Business Excellence Model (BEM) in the year 2005 certification.

On a consolidated basis, their sales for Fiscal 2003 was Rs. 1223.24 million which has increased to Rs. 4384.49 million for Fiscal 2007 at a CAGR of 37.59%. Their sales for the three months period ended June 30, 2007 was Rs. 1176.52 million. Their Net profit after taxes for Fiscal 2003 was Rs. 37.21 million which has increased to Rs. 254.12 million for Fiscal 2006 at a CAGR of 61.66%. Their net profit for the three months period ended June 30, 2007 was Rs. 72.26 million.

• UNAUDITED (STANDALONE) FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008
• (STANDALONE) SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED ENDED 30TH JUNE, 2008
• UNAUDITED (CONSOLIDATED) FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008
• (CONSOLIDATED) SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH JUNE, 2008

UNAUDITED (STANDALONE) FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008

(Rs. In Millions)

SR No.	Particulars	Three Months Ended Unaudited
1	Net Sales/Income from Operations	598.010
2	Other Income	3.404
3	Total Income (1+2)	601.414
4	Expenditure
	a) (Increase)/Decrease in Stock in Trade	-
	b) Consumption of Raw Materials	449.368
	c) Cost of Traded Goods	-
	d) Employees Cost	68.048
	e) Other Expenditure	59.060
	f) Depreciation	5.863
	g) Total Expenditure (a+f)	582.340
5	Finance Cost	16.437
6	Exceptional Items	-
7	Profit / (Loss) from Ordinary Activites before Tax (3)- (4+5+6)	2.637
8	Tax expense	(0.576)
9	Net Profit / (Loss) from Ordinary Activities After Tax (7-8)	3.214
10	Extraordinary Items (net of tax Expense)	-
11	Net Profit / (Loss) for the Period (9-10)	3.214
12	Paid-up Equity Share Capital	183.594
	( Face Value of Rs.10/- each )
13	Reserves excluding Revaluation Reserves	-
14	Earning Per Share EPS
	Basic (* Not Annualized)	0.018
	Diluted (* Not Annualized)	0.018
15	Public Shareholding
	Number of Shares	5324240
	Percentage of Shareholding	29

UNAUDITED (CONSOLIDATED) FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2008

(Rs. In Millions)

SR No.	Particulars	Three Months Ended Unaudited
		30.06.2008
1	Net Sales/Income from Operations	11,05.593
2	Other Income	6.899
3	Total Income (1+2)	11,12.492
4	Expenditure
	a) (Increase)/Decrease in Stock in Trade	-
	b) Consumption of Raw Materials	8,04.019
	c) Cost of Traded Goods	44.641
	d) Employees Cost	1,09.277
	e) Other Expenditure	78.667
	f) Depreciation	7.745
	g) Total Expenditure (a+f)	10,44.350
5	Finance Cost	24.569
6	Exceptional Items	-
7	Profit / (Loss) from Ordinary Activites before Tax (3)- (4+5+6)	43.574
8	Tax expense	(0.412)
9	Net Profit / (Loss) from Ordinary Activities After Tax (7-8)	43.986
10	Extraordinary Items (net of tax Expense)	-
11	Net Profit / (Loss) for the Period (9-10)	43.986
12	Paid-up Equity Share Capital	1,83.594
	( Face Value of Rs.10/- each )
13	Reserves excluding Revaluation Reserves	-
14	Earning Per Share EPS (Rs.)
	Basic (* Not Annualized)	0.240
	Diluted (* Not Annualized)	0.240
15	Public Shareholding
	Number of Shares	5324240
	Percentage of Shareholding	29

Top

Notes:

1. The above Unaudited Consolidated Financial Results have been reviewed by the Audit Committee in the meeting held on July 30, 2008 and approved by the Board of Directors in itsmeeting held on July 30,2008.

2. A Limited Review of the Consolidated Financial Results for the quarter ended June 30, 2008 has been carried out by the Statutory Auditors of the Company.

3. The company has acquired 100% holding in "L.J. Creations Private Limited" during the quarter and the results of the said company are incorporated in the consolidated financial statements of the company.

4. The Unaudited Consolidated Financial Results consists of the results of Renaissance Jewellery Limited, Verigold Fine Jewellery Private Limited, Renaissance Jewelry New York Inc. and L.J. Creations Private Limited, which together constitutes the "Group".

5. The Board at its meeting held on June 30, 2008, has approved the amalgamation of "Verigold Fine Jewellery Private Limited" and "L.J. Creations Private Limited" which are each 100% Subsidiaries with "Renaissance Jewellery limited" and necessary formalities are in progress

6. The position of funds raised in IPO including share premium and utilisation thereof as per the Objects of the issue upto June 30, 2008 is as under :

	Rs. In Millions
Funds raised (including share premium)	798.636
Utilisation
Expansion of manufacturing Capacity at Bhavnagar Unit ( 100% EOU)	16.34
Expansion of Capacity and modernisation of Mumbai units	22.021
Investment in Foreign subsidiary	353.656
Augmentng working capital requirements	227.761
Expenses incurred towards the IPO	61.208
Total Utilisation :	680.986
Balance of Unutilised funds
Lying in Liquid Mutual Funds and Fixed Deposits	117.65

7. Status of Investors Complaints (Nos): Opening Balance as on April 01, 2008 (Nil);Received during the quarter(91);Disposed of during the quarter (91);Closing Balance as on June 30, 2008(Nil).

8. During the quarter ended June 30, 2008, there was only one reportable segment i.e. Studded Jewellery.

9. As per Clause 41 of the Listing Agreement, the standalone results will be available on the Company's website www.renjewellery.com

10. As the Company's Equity Shares were listed on Stock Exchanges in the month of December 2007, compliance under Listing Agreement was not applicable before such date and hence, the comparative figures of the corresponding quarter ended June 30, 2007 have not been disclosed.

11. Previous year's figures have been re-grouped/ re-arranged wherever considered necessary.

NOTES TO ACCOUNTANT

(Rs. In millions)

Contingent liabilities not provided in respect of:		31.03.2008
1	Guarantee given by banks on behalf of the company to third parties	80.000
2	Guarantee given by banks against credit facilities extended to subsidiary company	26.000
3	Penalty levied by the custom authorities	0.311
4	Income tax demand disputed in appeal
	Disputed by the company	5.654
	Disputed by the department	6.111
5	Estimated amount of contact remaining to be executed on capital amount (Net of advances)	4.684

Segment Reporting

Primary Segment

The company operations predominantly relate to expert of diamond and gold studded jewellery. Based on the guiding principle given in the accounting slandered – 17 segment reporting issued by the institute of chartered accountant of India, the company primary segments are gold studded jewellery.

As per website

The Innovation

Renaissance takes pride in their modern design studio complete with a state-of-the-art CAD/CAM facility. Their dedicated team of 40 designers is, well versed on the latest international trends and contributes at least 400 innovative designs monthly to their ever-expanding portfolio of over 25,000 styles. The majority of their current models are produced using CAD/CAM to ensure precision.

The Creation

Their world-class production units consist of 1,400 plus highly skilled workers with access to the latest in tools and machinery including a laser-soldering machine, Nutech J10 casting machine and OTEC Stream Liner machine, just to mention a few. Production is geared for over 80,000 pieces a month. Their production unit is capable of meeting their clients’ most stringent requirements. High quality and efficient production are the bywords of the shop floor.

The Relation

Renaissance values developing a long-term partnership above marking a short-term sale. Their focus has always been on the timely delivery of quality goods. Every piece is assayed on their CMI machine for correct karatage and checked by an independent quality control team before shipping. Their customer-oriented marketing team ensures a quick turnaround of information and a consistent follow up customer requirements.

Promoters
Mr. Niranjan A. Shah aged 60 years, has over 37 years experience in the gems and jewellery business. He started his career as partner of N Kumar Diamonds and Co .on July 23, 1970. He later also became partner of M/s Sumit Diamond on March 22, 1978. He is a Promoter Director and the Chairman of their Company. He is the managing director of one of their group companies Housefull International Limited. As a non- executive chairman, he advises on the overall strategy of their Company. He is also a director of Fancy Jewellery Private Limited, Verigold Fine Jewellery Private Limited, Anika Jewellery Private Limited, N. Kumar Diamonds Exports Limited and Renaissance Retail Venture Private Limited.

Mr. Niranjan A. Shah joined the Board of Directors of their Company in 1995 and was appointed as Chariman of their Company with effect from Jauary 1, 2003.

Mr. Sumit N. Shah, aged 33 years, Son of Mr. Niranjan A. Shah, is a graduate from the Bentley College, Boston and has over 10 years of experience in the gems and jewellery business. He started his career with Mayur Gems and Jewellery Private Limited as a Director in the year 1995. He is the Managing Director of their Company and he is responsible for strategic planning, business promotion, monitoring long-term plans of their Company and technology transfer/ up-gradation. He is also a Director of N. Kumar Diamond Exports Limited, Fancy Jewellery Private Limited, Anika Jewellery Private Limited, House Full International Limited, and Renaissance Retail Venture Private Limited. He is also a partner in M/s Sumit Diamond.

Mr. Sumit N. Shah joined the Board of Directors of their Company in August 3 1995, and was appointed as Managing Director with effect from February 1, 2006.

Mr. Hitesh M. Shah, aged 35 years, is a bachelor in Commerce from Bombay University and has over 12 years of experience in the gems and jewellery business. He was earlier working with Sudiam B.V.BA, Japan as president and was responsible for managing operations. Mr. Hitesh M. Shah joined their Company as Chief Financial Officer and was appointed as an Executive Director in January 2003. He is responsible for product development, merchandising, marketing and financial planning. He is also a Director in N. Kumar Diamond Exports Limited, Fancy Jewellery Private Limited, Anika Jewellery Private Limited, House Full International Limited, and Renaissance Retail Venture Private Limited. He is also a partner in M/s Sumit Diamond.

Mr. Hitesh M. Shah joined the Board of Directors of their Company on September 3, 2003, and was re-appointed as Executive Director with effect from January 1, 2006.

Mr. Veerkumar C. Shah, 61 years is an Independent Director of their Company. He is a practicing Chartered Accountant. He has over 35 year experience in accountancy. He is a director in Kotak Chemicals Limited. He is also member of Audit Committee, Shareholders and Investor Grievance Committee, Remuneration Committee and Chairman of the Audit committee.
Mr. Veerkumar. C Shah joined the Board of Directors of their Company on February 1, 2006

Mr. Anil K. Chopra, 63 years, is an additional Director of their Company. He has a Post Graduate Diploma in Management (recognized in India as equivalent to a Masters in Business Administration) from Indian Institute of Management, Ahmedabad and holds a B,Sc (Honours) Degree in Chemistry from the Calcutta University. He has 40 years experience interalia marketing of durables and non-durables, commercial operations and management of Business Ethics. He started his career in Voltas Limited in 1967 and continued in various corporate assignments with them till 1998. From 1999 to 2004, till his retirement, he was on deputation from Voltas to Tata Sons Limited, as Senior Consultant, Management of Business Ethics, Tata Quality Management Services. Mr. Chopra has been active in various positions in academics, Industry Associations and Social institutions including Rotary International, Transparency International, Center for Business Ethics, Bentley College, Waltham USA, Conference Board and Tiri, a London based NGO.

Mr. Anil K. Chopra joined the Board of Directors of their Company on April 3, 2007.

Mr. Pramod H. Lele, 58 years is an Independent Director of their Company. He holds a Bachelor’s Degree in Commerce from Mumbai University, a Bachelor’s Degree in Law from Mumbai University, and is a qualified member of the Association of Cost Accountants and Institute of Cost and Work Accountants of India. Mr. Lele is the CEO of P.D. Hinduja National Hospital and Medical Research Centre. He has over 31 years of experience. Mr. Pramod H. Lele has formerly been associated with the organizations namely Park Davis (India) Limited as Managing Director, Johnson And Johnson Limited, as Executive Vice President- Consumer Business and HRD, and Board of Internal Trade, Dar- Es- Salaam as Internal Auditor, and Duphar-Interfran Ltd as Internal Auditor.

Mr. Pramod H. Lele joined the Board of Directors of their Company on April 3, 2007

Mr. Vishwas. V. Mehendale, 49 years is an Additional Director of their Company. He holds a Bachelor’s Degree in Commerce from Sydenham College, Mumbai and a Bachelor’s Degree in law from New Law College, Matunga and is a qualified F.C.A. Mr. Vishwas. V Mehendale is a practicing Chartered Accountant. He is the proprietor of V. V.Mehendale and Co., Chartered Accountants and a partner in a firm of chartered accountants M/s Trilokekar Thosar and Associates. Mr.Vishwas V. Mehedalehas over 27 years of experience in areas relating to finance, taxation and auditing.

Mr. Vishwas V. Mehendale joined the Board of Directors of their Company on April 3, 2007

Mr. Neville R. Tata, 32 years their Executive Director, has been associated with their Company since the last 7 years. He has total work experience of 14 years. He has completed his H.S.C education from Mithibai College, Mumbai. Prior to joining us, Mr. Tata has worked with Inter Gold Private Limited as a Production Manager. Mr. Tata was Chief Operating Officer and was responsible for overseeing operational functioning of their factories. He is currently responsible for the entire operations with relation to production activities’ starting with product planning, ensuring quality of product and taking corrective and preventive actions while producing the product.

Mr. Neville Tata joined the Board of Directors of their Company as Executive Director with effect from February 1, 2006

FIXED ASSETS

Tangible Assets

· Land

· Building

· Plant and Machinery

· Furniture and Fittings

· Electrical Installations

· Office Equipment

· Computers

· Vehicles

Intangible Assets

· Computer Software

Renaissance Jewellery files prospectus for IPO

Their Bureau

Mumbai , May 4

Mumbai-based Renaissance Jewellery has filed draft prospectus for its initial public offer (IPO) with the Securities and Exchange Board of India.

The company intends to offer 3.510 millions equity shares of Rs 10 each at a price to be fixed through the book-building route.

The issue would constitute 35 per cent of the fully diluted post issue paid-up capital of the company.

They have filed the red herring draft prospectus with Securities and Exchange Board of India on April 28 last, and when to hit the market depends on market conditions," Mr Hitesh Shah, Executive Director, Renaissance Jewellery Ltd, said in a release. A 100 per cent export oriented unit (EOU), Renaissance Jewellery is a leading manufacturer of studded gold, platinum and silver jewellery for over 10 years. The company has manufacturing unit at Mumbai (two units located at SEEPZ, SEZ, Andheri, Mumbai) and one unit at Bhavnagar, Gujarat.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.72
UK Pound	1	Rs.84.81
Euro	1	Rs.67.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions