The luxury watch market continues to grow at a robust rate despite the slowdown that was experienced in the previous financial year. The Indian market is estimated to have grown at about 20% in the year, far above the overall growth of the Swiss Watch exports at about 2% only in the calendar year 2013. During the course of the year, the Company continued its topline growth. The company's billings grew from Rs. 195 crores in FY12-13 to Rs 247 crores in FY13-14, a growth of approximately 27%. The growth in billings has been achieved on the back of healthy like-to-like growth of billings at store level at 18%. During the year, the Company has opened thirteen new stores. The Company took a close look at stores that are not profitable and closed 5 stores. The total number of stores as at the end of FY2013-14 is 45. The Company continues to monitor closely the financial performance of all stores and closing stores that do not show a significant improvement in sales and profits. The on-line initiatives of the Company have shown tremendous potential. In FY2013-14, the Company attracted an online traffic of 3 million unique visitors. Further, the on-line initiatives contributed to more than 16% of the overall sales achieved by the Company. Considering the success of these on-line initiatives, the Company will be allocating greater resources to this medium. The Company is now effectively able to transcend the limitations of presence at its stores to all over India. The internet team now caters to far flung cities where it has no store presence and has loyal customer base in cities such as Lucknow, Cochin, Bhubaneswar, Guwahati, Goa, Raipur, among others. Despite the constraints on the net profits due to loss on account of exchange rate fluctuation to the extent of Rs. 7.3 million and write offs due to closure of stores amounting to Rs. 4.3 million, the net profits have improved over the last year. Nonetheless, improvement in EBIDTA margin will be a key focus area and we expect to see a definite improvement in margins together with a continuing growth in topline.

In view of the marginal profits during the year, no dividend has been proposed for the financial year ended on March 31, 2014.

Foreign Exchange earnings - Rs. 278,783,230 and Foreign Exchange outgo - Rs. 360,909,162

Pursuant to the amendment in the Companies (Particulars of Employees) Rules, 2011 vide notification No. GSR 289(E) dated 31.03.2011 issued by the Ministry of Corporate Affairs, no employee of the Company was in receipt of Rs Sixty Lacs per annum or Rs Five Lacs per month during the year under review. Accordingly, no particulars of employees are given pursuant to the provisions of Section 217(2A) of the Companies Act, 1956.

In response to the qualified opinion by the auditors in respect of their view that as per the Accounting Standard on Leases (AS-19), the recognition of lease rent as per the contractual terms in respect of fixed price contracts (with periodic cost escalations), should have been done on a straight line basis over the lease term. Attention is invited to note 42 regarding the management's view that on the basis of the considered facts stated therein, the lease rent in respect of premises taken on operating lease when recognized as per the contractual terms of such leases, instead of on a straight line basis over the lease term will be more prudent and representative of the systematic basis of time pattern of the user's benefit of the leased space.