| | COMPANY'S
PHILOSOPHY ON CORPORATE GOVERNAMCE:
The company believes in adopting
and adhering to the best Corporate Governance practices and to respect its fiduciary
responsibility towards the shareholders. Efficient Corporate Governance requires
a clear understanding of the respective roles of the Board and of senior management
and their relationship
With others in the corporate structure. It is
a process  of
building positive relationship and making a wider impact to intensify the interest
and appreciation of its members with greater commitment and trust. The company
has infused the philosophy of corporate Governance in all its activities so as
to conduct the affairs of the company in order to ensure fairness to all stakeholders
and that its policies benefits a greater number of stakeholders. We at Tiara believe
that the Corporate Governance envisages the attainment of transparency, accountability
and integrity in all facets of its operation and its interactions with shareholders,
employees, banks and the Government.
In so far as compliance with the
requirement of cause 49 of the Listing Agreement with the Stock Exchange, the
Company has compiled with all the mandatory norms and disclosures that have to
be made on Corporate Governance Format.
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| | a.
Industry Structure and Development | Indian
economy has managed to keep its strong growing pace during the year 2004-05 and
is likely to provide ample opportunities for growth. The economic survey for
the year 2004-05 estimates the industrial growth at 7.8% as compared to 6.0% in
the previous year. Economic growth in India during the financial year 2004-05
stood at a healthy rate of 6.9% and poised to achieve 8% growth in the near future.
The economic indices point to the ability to sustain a large and growing domestic
consumer base.
In the year 2004, the world economy enjoyed its strongest
growth in 30 years despite the spike in oil prices. The adventurous Indian Players
have gone ahead with full vigor and determination and succeeded internationally.
In terms of Purchasing Power Parity, India has retained its position as the fourth
largest economy in the world with US$ 3,062 billion.
The year 2004-05
has witnessed a growth in all major segments of the Gem and jewellery industry
and the total exports stood at US$ 15677.13 million, a growth of 2927% as compared
to the previous year. Exports of Diamond have continued to rise and the jewellery
sector has turned in another record-breaking performances. Global gold jewellery
consumption increased 19% in 2004, the buoyant in countries like India, the Gulf
States, China and Turkey pulled up the overall figures.
Since early 90% the
jewellery has averaged a growth of over 30%, making India the fastest growing
jewellery exporter in the world and also in the year 2004 the demand for gold
jewellery in India increased by the 29% in the value to become the fastest growing
jewellery market in the world.
| | I.
Diamond | India
enjoys domination in the world cut and polished diamond market and smaller diamonds
in particular, which was amply reflected in the export of US$ 11181.48 million
for the year ended 31st March, 2005 as compared to US$ 862748 million against
the corresponding period in last year. The company recorded diamond sale amounting
to Rs. 545.17 Crores for the financial year 2004-05.
TIARA at second
Floor Lalitha features the most enthralling ever range in exclusively diamond
jewellery that combine the eternal quality of diamonds with splendid craftsmanship
and artistic perfection.
| | ii.
Jewellery | The
year 2004-05 was a good year for the global jewellery sales as well as to the
company. Demand was fuelled by good economic growth and improved demand particularly
from Asia and the Middle East. Gold Jewellery sales in United Stated of America
increased by 4% in 2004 to huge US$ 17 billion.
The Jewellery sector
recorded a massive growth of 49.23% for the year ended 31st March 2005. The demand
for the diamond jewellery will continue to grow stronger due to the continued
marketing support by the industry especially in the U.S., India and China. The
company recorded outstanding growth of 117% in jewellery sales amounting to Rs.482.86
Crores as compared to the previous year of figure of Rs.222.05 Crores.
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| ........Mission
and Business Strategy........ |
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