­­Mumbai based, Gold Star Diamond Private Limited (GDPL), incorporated in 1995, is engaged in the cutting, polishing and trading of diamonds and is a part of the Gold Star Group of Companies. The revenue from GDPL constitutes around ~15-30 percent of Gold Star group led by Mr. Ankur Shah and Mr. Sayam Shah.

The Gold Star group manufactures and exports diamond-studded gold and platinum jewellery. The group is also engaged in cutting and polishing of diamonds. The jewellery business is carried out through Gold Star Jewellery Private Limited (GJPL) (incorporated in 1990) and the diamond business is carried out through Gold Star Diamond Private Limited (GDPL) (incorporated in 1995). The jewellery division accounts for ~92 per cent of the group's revenue, and the diamond division for the balance ~8 per cent. The Group is managed by Shah family and are supported by seasoned professionals.

­Ability to improve its scale of operations while maintaining its profitability
Any further elongation in its working capital cycle
Deterioration in the financial risk profile

The group’s liquidity profile is adequate marked by healthy net cash accruals against maturing debt obligations. The group generated cash accruals of Rs.80.83 crores in FY23 as against debt obligations of Rs.16.22 crore for the same period. The cash accruals of the company are estimated to remain in the range of around Rs.60.13-78.46 crore during FY2024-25 against repayment obligations ranging from Rs.11.14-11.23 crore for the same period. The group maintains unencumbered cash and bank balances of Rs.34.79 crore as on March 31, 2023. The current ratio stood at 1.82 times as on March 31, 2023. Acuité believes that group's liquidity position will remain adequate in the medium term.

­Acuité believes that Gold Star group will maintain a ‘Stable’ outlook over medium term on account of extensive experience of its management, established track record of operations and healthy financial risk profile. The outlook may be revised to ‘Positive’ in case the Company achieves higher than expected improvement in its scale of operations while maintaining its profitability and capital structure. Conversely, the outlook may be revised to ‘Negative’ in case of any significant debt funded capex leading to deterioration of financial risk profile or any further elongation in its working capital cycle impacting its liquidity profile.

­None

­Not Applicable

­None

I­n order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.