50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
4
on the cut-off date i.e. December 14, 2016, may cast their
vote by remote E-voting. The remote E-voting module shall
be disabled by NSDL for voting thereafter. Once the vote on
a resolution is cast by the member, the member shall not be
allowed to change it subsequently.
9. The voting right of Members shall be one vote for each
membership with the Council as on cut-off date i.e. December
14, 2016.
10. Any person, who becomes Ordinary Member of the
Council after dispatch of the Notice and having membership
as of the cut-off date i.e. December 14, 2016 may obtain
the login ID and password by sending a request at
or writing to the Council.
11. CS Saurabh Shah, Partner, M/s Pramod S Shah &
Associates, Practicing Company Secretary has been
appointed as a Scrutinizer for conducting the e-voting
process in a fair and transparent manner.
12. The Chairman shall, at the AGM, at the end of discussion
on the resolutions on which voting is to be held, allow voting
with the assistance of scrutinizer, by use of “e-voting” for all
those members who are present at the AGM but have not
cast their votes by availing the remote E-voting facility.
13. The Scrutinizer shall after the conclusion of voting at
the AGM, will first count the votes cast at the meeting and
thereafter unblock the votes cast through remote E-voting in
the presence of at least two witnesses not in the employment
of the Council and shall make, not later than three days of
the conclusion of the 50th AGM, a consolidated Scrutinizer’s
Report of the total votes cast in favor or against, if any, to the
Chairman or a person authorized by him in writing, who shall
countersign the same and declare the result of the voting
forthwith.
14. The Results declared along with the report of the
Scrutinizer shall be placed on the website of the Council
and on the website of NSDL immediately
after the declaration of result by the Chairman or a person
authorized by him in writing.
15. All Ordinary Members will receive an email from NSDL [for
members whose E-mail IDs are registered with the Company
and which would contain the detailed instructions on how to
undertake the E-voting process. CS Saurabh Shah (Pramod
Shah & Associates) has been appointed as the Scrutinizer
for providing facility to the members of the Company to
scrutinize the voting and remote e-voting process in a fair
and transparent manner.
EXPLANATORY STATEMENT PURSUANT TO THE
SECTION 102 OF THE COMPANIES ACT, 2013:
ITEM No. 4 and 5:
The Council had made an application for full time membership
to the World Federation of Diamond Bourses (WFDB). In this
regard, based on the visit of Mr. Hanro Friedrich (WFDB Legal
Counsel) in April 2016 and his subsequent discussions with
Council representatives thereafter, it was understood that
certain amendments to the Articles of Association (AoA) and
Code of Ethics of the Council (CoE) would have to be made
in order to ensure basic conformity to the requirements of
the WFDB bye-laws. Pursuant to the same, the amendments
were first discussed and approved in the Diamond Panel
Committee meeting held on 13th April 2016 and subsequently
the Committee of Administration, at its fifth meeting (2015-
17) held on July 8, 2016, considered and proposed the
amendments to Articles of Association and Code of Ethics
as contained under Item No. 5 and 6 of the Notice convening
this Meeting.
None of the Directors or their relatives are concerned or
interested in the proposed special resolutions.
The Committee of Administration recommends the proposed
amendments to the Articles of Association and Code of Ethics
for the approval of the Members as Special Resolution.
ITEM No. 6
As discussed in the Audit & Finance Sub-Committee meeting
held on 09th March 2016 followed up with discussions in the
Promotions, Marketing and Business Development (PMBD)
sub-committee meeting held on 12th August 2016 and as
decided in the Diamond Panel Committee (DPC) meeting
held on 27th September 2016, the members thoroughly
deliberated on the options for proposed collection of Ad-
Valorem for creating a fund for promotion of Gems & Jewellery
as it was done in some earlier years. It was generally agreed
that separate funds for promotion of Jewellery, Colored
Gemstones and Diamonds will be created and the collections
will be based on each of the respective products only.
The Committee of Administration recommends the proposed
resolution as a special resolution for the approval of the
members.
ITEM No. 7
DPA initiated ‘Real is Rare’ program during the JCK Las
Vegas show in June 2016. This Marketing Campaign aims to
transform the diamond experience by building an emotional
connect between diamond products and consumer and
targeting towards occasions for generating demand for
Diamond Jewellery amongst consumers in the USA. USA
accounts for 45% of Diamond Jewellery Sales of the Globe,
with 31%of Gem& Jewellery Exports from India directed to the
Region. For the USA, India is the largest sourcing destination
for Diamond Jewellery with 23% of total Jewellery imported
from India. Over the past few years Diamond and Diamond
Jewellery Sales have been witnessing sluggish demand
due to lack of concerted efforts by associations globally, to
promote the category amongst consumers. GJEPC proposed
to join hands with Diamonds Producers Association or DPA
as its popularly known to undertake promotional activities
to drive consumer demand for Diamond Jewellery globally
and USA to begin with. DPA’s plan entails Markets namely
USA, India and China for the Promotion of Diamond Jewellery
starting last quarter 2016. GJEPC proposed to partner Real
is Rare worldwide diamond promotion program as one of
the Partners alike AWDC, Israel Diamond Institute, DMCC,
US Jewellery Council by funding this initiative in the year
2017 to the tune of USD 20,00,000 (US Dollars Two Millions
only). The Council believes this program has huge potential
to revive Diamond Jewellery sales substantially in the USA
which is one of the major exporting destinations for Indian
Gem & Jewellery Export Industry. DPA’s founding members
comprise of leading miners such as ALROSA, De Beers UK,
Dominion Diamonds, Petra Diamonds, Rio Tinto amongst
other established Miners.
The Committee of Administration recommends the resolution
for the approval of the Members as a Special Resolution.
ITEM No. 8
The Gem and Jewellery industry has inherited the culture
of self-regulation and perpetuated strong foundation of
trust and moral values leading to log lasting business
ethics over the years, however growth of business and
global operations involving many players in the industry
and the consequences thereto, necessitates to build a
strong mechanism to enforce these values so that there is
