This Nomination and Remuneration Policy is being formulated in compliance with Section 178 of the Companies Act, 2013 read along with the applicable rules thereto, as amended from time to time. This policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been formulated by the Nomination and Remuneration Committee (NRC or the Committee) and has been approved by the Board of Directors.
“Remuneration” means any money or its equivalent given or passed to any person for services rendered by him and includes perquisites as defined under the Income-tax Act, 1961;
“Key Managerial Personnel” means:
i. the Chief Executive Officer or the Managing director or the Manager;
ii. the Company Secretary;
iii. the Whole-Time Director;
iv. the Chief Financial Officer, and
v. such other officer as may be prescribed.
“Senior Managerial Personnel” mean the personnel of the company who are members of its core management team excluding Board of Directors. Normally, this would comprise all members of management, of rank equivalent to General Manager and above, including all functional heads.
1) To guide the Board in relation to appointment and removal of Directors,Key Managerial Personnel and Senior Management..
2) To evaluate the performance of the members of the Board and Provide necessary report to the Board for further evaluation of the Board..
3) To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel and Senior Management.
The role of the NRC will be the following:
1) To formulate criteria for determining qualifications, positive attributes and independence of a Director.
2) To formulate criteria for evaluation of Independent Directors and the Board.
3) To identify persons who are qualified to become Directors and who may be appointed in Senior Management in accordance with the criteria laid down in this policy.
4) To carry out evaluation of Director’s performance.
5) To recommend to the Board the appointment and removal of Directors and Senior Management.
6) To recommend to the Board policy relating to remuneration for Directors, Key Managerial Personnel and Senior Management.
7) To devise a policy on Board diversity, composition, size.
8) Succession planning for replacing Key Executives and overseeing.
9) To carry out any other function as is mandated by the Board from time to time and / or enforced by any statutory notification, amendment or modification, as may be applicable.
10) To perform such other functions as may be necessary or appropriate for the performance of its duties.
The Proceedings shall be carried out in strict confidentiality, in an unbiased manner and shall ensure thorough fact finding. The Whistle Blower-Complainant, Managing Director, Audit Committee Chairman and every internal and external stakeholder involved in the process shall:
1. The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as Director, KMP or at Senior Management level and recommend his / her appointment, as per Company’s Policy.
2. A person should possess adequate qualification, expertise and experience for the position he / she is considered for appointment. The Committee has authority to decide whether qualification, expertise and experience possessed by a person is sufficient/satisfactory for the position.
3. The Company shall not appoint or continue the employment of any person as Whole-time Director who has attained the age of seventy years. Provided that the term of the person holding this position may be extended beyond the age of seventy years with the approval of shareholders by passing a special resolution.
Managing Director/Whole-time Director:
The Company shall appoint or re-appoint any person as its Executive Chairman, Managing Director or Executive Director for a term not exceeding five years at a time. No re-appointment shall be made earlier than one year before the expiry of term.
An Independent Director shall hold office for a term up to five consecutive years on the Board of the Company and will be eligible for re-appointment on passing of a special resolution by the Company and disclosure of such appointment in the Board's report. No Independent Director shall hold office for more than two consecutive terms of upto maximum of 5 years each, but such Independent Director shall be eligible for appointment after expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly.
At the time of appointment of Independent Director it should be ensured that number of Boards on which such Independent Director serves is restricted to seven listed companies as an Independent Director and three listed companies as an Independent Director in case such person is serving as a Whole-time Director of a listed company or such other number as may be prescribed under the Act. Evaluation The Committee shall carry out evaluation of performance of Director, KMP and Senior Management Personnel yearly or at such intervals as may be considered necessary.
The Committee may recommend with reasons recorded in writing, removal of a Director, KMP or Senior Management Personnel subject to the provisions and compliance of the Companies Act, 2013, rules and regulations and the policy of the Company.
The Director, KMP and Senior Management Personnel shall retire as per the applicable provisions of the Act and the prevailing policy of the Company. The Board will have the discretion to retain the Director, KMP, Senior Management Personnel in the same position/ remuneration or otherwise even after attaining the retirement age, for the benefit of the Company.
Policy For Remuneration to Directors/KMP/Senior Management Personnel
i. Remuneration to Managing Director / Whole-time Directors:
a) The Remuneration/ Commission etc. to be paid to Managing Director / Whole-time Directors, etc. shall be governed as per provisions of the Companies Act, 2013 and rules made there under or any other enactment for the time being in force and the approvals obtained from the Members of the Company.
b) The Nomination and Remuneration Committee shall make such recommendations to the Board of Directors, as it may consider appropriate with regard to remuneration to Managing Director / Whole-time Directors.
ii. Remuneration to Non- Executive / Independent Directors:
a) The Non-Executive / Independent Directors may receive sitting fees and such other remuneration as permissible under the provisions of Companies Act, 2013 [Subject to the approval of the Board of Directors].The amount of sitting fees shall be such as may be recommended by the Nomination and Remuneration Committee and approved by the Board of Directors.
b) All the remuneration of the Non- Executive / Independent Directors (excluding remuneration for attending meetings as prescribed under Section 197 (5) of the Companies Act, 2013) shall be subject to ceiling/ limits as provided under Companies Act, 2013 and rules made there under or any other enactment for the time being in force. The amount of such remuneration shall be such as may be recommended by the Nomination and Remuneration Committee and approved by the Board of Directors or shareholders, as the case may be.
c) An Independent Director shall not be eligible to get Stock Options and also shall not be eligible to anticipate in any share based payment schemes of the Company.
d) Any remuneration paid to Non- Executive / Independent Directors for services rendered which are of professional in nature shall not be considered as part of the remuneration for the purposes of clause (b) above if the following conditions are satisfied:
i. The Services are rendered by such Director in his capacity as the professional; and
ii. In the opinion of the Committee, the director possesses the requisite qualification for the practice of that profession.
iii. Remuneration to Key Managerial Personnel and Senior Management:
1. The remuneration to Key Managerial Personnel and Senior Management shall consist of fixed pay and incentive pay, in compliance with the provisions of the Companies Act, 2013 and in accordance with the Company’s Policy.
2. The Compensation Committee of the Company, constituted for the purpose of administering the Employee Stock Option/ Purchase Schemes, shall determine the stock options and other share based payments to be made to Key Managerial Personnel and Senior Management.
3. The Fixed pay shall include monthly remuneration, employer’s contribution to Provident Fund, contribution to pension fund, pension schemes, etc. as decided from to time.
4. The Incentive pay shall be decided based on the balance between performance of the Company and performance of the Key Managerial Personnel and Senior Management, to be decided annually or at such intervals as may be considered appropriate. Implementation The Committee may issue guidelines, procedures, formats, reporting mechanism and manuals in supplement and for better implementation of this policy as considered appropriate. The Committee may Delegate any of its powers to one or more of its members.
The management is headed by Mr.K. Srinivasan, who is a B.Sc graduate fromMadras University. Mr.K Srinivasan is ably assisted by Mrs. Shakthi Srinivasan andMr. G.K. Venkatagopal in the capacity of Directors. The company is constantly driven towards excellence through the vision and mission of thetop management. Highlyqualified Engineers and professionals help the management in achieving theobjectives of the Company.
The group provides employment to over 4500 employees. The in-house ‘training center’ provides extensive training in the areasof design, production, stone setting etc. to the work force to maintain uniformity of quality and perfection. In addition to the skilled and semi-skilled work force, the Company possesses talented and updated team of designers proficient in computerized modeling andprototype equipments.
The Group is involved in design, development, production and distribution of a wide spectrum of jewellery, viz.,
“Business Line” recognized the Company in its issue dt. 5.10.12 by publishingan article captioned “Jeweller No.1”.
“The New Jeweller” in its special issue of Dec’12 published an article titled “Asia’s top 20 List” and identified Emerald as one among the top 20 in Asia in the Gold Jewellery Sector.
The Group operates 4 production facilities in Coimbatore each one specializing indifferent types of product range.
There are 4 sophisticated ‘Design Studios’ for the group in the cities of Coimbatore, Mumbai, Calcutta & Delhi.
The Company has a capacity to produce about 25 tonnes of Gold Jewellery&Articles, Diamond Jewellery per annum and about 3.6 tonnes of capacity to produceSilver Articles per annum in the above production facilities presently.
The Group has a centralized marketing office in Mumbai, which looks after theentire marketing activities of the group.
The following diagram aptly describes the distribution network of the group:
There are about 76 Wholesalers spread across the country who buy the finishedproducts from the company directly and sell to customers through the Retailers.
Shop-in-shop model is the marketing strategy the group has adopted for marketing their branded jewellery such as Ishtaa&Nishtaa. The pricing is doneon ‘MRP’ basis for these branded JEWELLERY. The centralized marketing office inMumbai is responsible for marketing these branded jewellery as well.
The Company is exporting its products to UK, USA, Middle East, Far East and New Zeland.
In addition to the above ‘brands’, Emerald Jewel Industry India Ltd launchedits own retail brand ‘JewelOne’ with a view to reach the common man at anaffordable price. These branded jewellery are marketed by our subsidiarycompany viz., Emerald Jewellery Retail Ltd., through its retail outlets. This RetailCompany has already opened 14 exclusive showrooms in places likeCoimbatore, Chennai – Purasawalkam and Mylapore, Kallakurichy, Vellore, Madurai, Ramanathapuram, Salem, Erode, Pollachi, Udumalpet,Tiruppur & Hosur in Tamil Nadu and Pondicherry. In addition, the retail arm of the Emerald Group has ambitious plans to open exclusive showrooms inall major cities and towns across the country in the coming years.
Emerald Jewel Industries India Limited [EJIIL] has been in existence for over 32 years which was launched with the purpose of serving customers with high quality, contemporary styled 916 BIS Hallmarked Gold Jewellery. Today it is a leading group in the Indian Jewellery industry having produced more than 3.5 Lakh designs. The company has also made its mark in the international markets through its export division. It employs over 4500 employees and follows a stringent quality process.
EJIIL is the brainchild of Mr. K. Srinivasan, who as Founder and Managing Director leads the manufacturing process laying emphasis on quality excellence and continuous improvement with a customer-centric approach. His relentless efforts, continuous research combined with high principles have lead the company to attain the position of ‘One of the world’s leading jewellery manufacturers’.
Jewel One is the retail brand of Emerald Group operating 14 exclusive showrooms across Tamil Nadu and Pondicherry, apart from being retailed through leading jewelleryoutlets across India. Jewel One has been patronized primarily by discerning customers seeking top quality 916 BIS Hallmark certified jewellerywhich EJIIL churns out using international technology. Jewel One is currently on an expansion mode and plans to roll out its exclusive showrooms pan India!