{"id":27326,"date":"2021-09-03T11:56:07","date_gmt":"2021-09-03T11:56:07","guid":{"rendered":"http:\/\/10.122.0.34\/wordpress\/?page_id=27326"},"modified":"2025-09-11T15:31:07","modified_gmt":"2025-09-11T10:01:07","slug":"risks-concern","status":"publish","type":"page","link":"https:\/\/www.thangamayil.com\/corporate\/risks-concern\/","title":{"rendered":"Risks &#038; Concern"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"27326\" class=\"elementor elementor-27326\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8f2ab10 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"8f2ab10\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0f53c08\" data-id=\"0f53c08\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7b6c168 animated-slow elementor-section-boxed elementor-section-height-default elementor-section-height-default elementor-invisible\" data-id=\"7b6c168\" data-element_type=\"section\" data-settings=\"{&quot;animation&quot;:&quot;fadeInUp&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5094385\" data-id=\"5094385\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9354a17 elementor-widget elementor-widget-text-editor\" data-id=\"9354a17\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.6.5 - 27-04-2022 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<div class=\"page-title\"><h1>Risks &amp; Concern<\/h1><\/div><div class=\"entry std\"><h3>RISK FACTORS<\/h3><p>The Risk management process at TMJL revolves around identi\ufb01cation of all risks of internal and external and undertaking risk mitigation measures so that monitoring their impact would be process driven with a view to take corrective course of actions.<\/p><div class=\"heading-content\"><h3><strong><b>Industry Risk<\/b><\/strong><\/h3><p>Jewellery industry dominated by gold metal in India and is going through a shrinking phase in the discretionary context of customers priorities for purchases together with wide gold price movements. Business is shifting from unorganized sector to corporates with deep pockets of resources to sustain the cyclical risk impact.<\/p><p>Your company enlarged its wings in semi and rural areas where the existing business is shifting to organized players like us. The shrinking size risk is mitigated by adding value added products in the portfolio and also by selling other popular brands under our umbrella<\/p><h3><strong><b>Regulatory Risk<\/b><\/strong><\/h3><p>The Government has implemented more stringent regulatory measures in all aspects of the trade starting from compliances under various Acts including Income tax and customer friendly Hallmarking, etc., in a speedier manner.<\/p><p>Your company has already adapted to the changes in the trade requirements and in fact would be a bene\ufb01ciary under GST regulations.<\/p><h3><strong><b>Commodity Risk<\/b><\/strong><\/h3><p>Gold being a commodity, price is in\ufb02uenced by various factors including demand and supply. Even though we buy gold whenever we sell on the same day, in order not to carry the risk of price \ufb02uctuations, the underlying stock on a given date certainly a\ufb00ected by the price movement. The impact of it either positive or negative often shadowed the real operating capabilities of the company. Your company has an inbuilt hedging mechanism to mitigate the extreme \ufb02uctuations in gold price movement. Currently we maintain 96:4 ratio between hedged and un-hedged closing stock inventory in any given date. This strategy helped us to maintain our performance, besides ensuring liquidity in the system.<\/p><p>Every aspect, of the risks components mentioned in the earlier paras, were carefully evaluated by the respective teams and reported to Board at intervals to reset the strategies and policies that may tend to be appropriate and re-assuring in the changed realities.<\/p><h3><strong><b>Cost Risk<\/b><\/strong><\/h3><p>The brand building and establishment cost increased in recent years due to growth aspirations. New business can be identi\ufb01ed by enhancing the visibility of the Brand. It involves a huge cost on a recurring basis even though the positive impact could be seen in later years.<\/p><p>Your Company by taking into advantages of low cost retailer tag has already spent larger sums for advertisement and publicity. This will go a long way in expanding the retail outlets in larger parts of Tamilnadu and the cost currently incurred would be amortized among larger number of retail outlets in the days to come.<\/p><\/div><h3><strong><b>Growth Risk<\/b><\/strong><\/h3><p>The industry su\ufb00ers from the introduction of sovereign gold bond and also by the penetration of \u201cE-commerce\u201d activity in the trade. New territorial expansion often results in burning cash in the form of excessive \ufb01xed cost in the earlier years anticipating a sustainable business later that is not guaranteedYour Company though strategically decided to grow but restricted its inroads into current territorial places in a deeper and concentrated manner so that \ufb01xed cost impact will not be felt by the company as an adverse factor. We opt for Asset less model and therefore the risk of growth in unknown places is mitigated to that extent.<\/p><h3><strong><b>Financial risk<\/b><\/strong><\/h3><p>Stretched \ufb01nancials could hamper business sustainability. The Company\u2019s gearing as at 31st March 2025 stood at\u00a00.77 times which is among one of the best in the target corporates of the industry.<\/p><p>The company is consistently reducing its high-cost debts and leverage only when it is self-liquidating in nature. All the \ufb01nancial indicators are improving including risk weighted Return on Equity.<\/p><p>However, all our retails outlets expansion plan is going forward smoothly. Our learning out of \ufb01rst wave has helped us to rearrange resources and improve our operating e\ufb03ciencies.<\/p><h2><strong><b>INTERNAL FINANCIAL CONTROL SYSTEMS<\/b><\/strong><\/h2><p>The Board of Directors is responsible for ensuring that internal \ufb01nancial controls have been laid down in the Company and that such controls are adequate and is functioning e\ufb00ectively. TMJL has policies, procedures, control frameworks and management systems in place that map into the de\ufb01nition of Internal Financial Controls as detailed in the Companies Act, 2013. These have been established at the entity and process levels and are designed to ensure compliance to internal control requirements, regulatory compliance, and appropriate recording of \ufb01nancial and operational information.<br \/><br \/>Internal Financial Controls that encompass the policies, processes, and monitoring systems for assessing and mitigating operational, \ufb01nancial and compliance risks and controls over related party transactions, substantially exist. The management reviews and certi\ufb01es the e\ufb00ectiveness of the internal control mechanism over \ufb01nancial reporting, adherence to the code of conduct and Company\u2019s policies for which they are responsible and also the compliance to established procedures relating to \ufb01nancial or commercial transactions, where they have a personal interest or potential con\ufb02ict of interest, if any.<\/p><p>The Audit Division continuously monitors the e\ufb03cacy of Internal Financial Controls with the objective of providing to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance on the adequacy and e\ufb00ectiveness of the organisation\u2019s risk management, control and governance processes. The auditplan is approved by the Audit Committee, which reviews compliance to the plan.<\/p><p>During the year, the Audit Committee met regularly to review reports submitted by the Audit Division. All signi\ufb01cant audit observations and follow-up actions thereon were reported to the Audit Committee.<\/p><p>The Audit Committee also met the Company\u2019s Statutory Auditors to ascertain their views on \ufb01nancial statements, including the \ufb01nancial reporting system, compliance to accounting policies and procedures, the adequacy and e\ufb00ectiveness of the internal controls and systems followed by the Company. The Management acted upon the observations and suggestions of the Audit Committee.<\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Risks &amp; Concern RISK FACTORS The Risk management process at TMJL revolves around identi\ufb01cation of all risks of internal and external and undertaking risk mitigation measures so that monitoring their impact would be process driven with a view to take corrective course of actions. Industry Risk Jewellery industry dominated by gold metal in India and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}}},"_links":{"self":[{"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/pages\/27326"}],"collection":[{"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/comments?post=27326"}],"version-history":[{"count":40,"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/pages\/27326\/revisions"}],"predecessor-version":[{"id":40683,"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/pages\/27326\/revisions\/40683"}],"wp:attachment":[{"href":"https:\/\/www.thangamayil.com\/corporate\/wp-json\/wp\/v2\/media?parent=27326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}