Ausom Enterprise is fundamentally a trading house - it buys and sells precious metals, stones, and financial instruments, acting as an intermediary rather than a manufacturer. The business took its current shape around 2010 after a demerger, and has been run ever since by the Mandalia family, who bring decades of experience in jewellery and bullion markets. The recurring approach is to operate with almost no fixed costs - just two or three employees and a debt-free balance sheet - while using the promoters' relationships and a network of related-party entities to move large volumes of high-value goods. # Business segments Three engines at different stages - a precious-metals trading core that generates the bulk of activity, a gold refinery joint venture that extends the trading logic into processing, and a solar subsidiary still under construction - each built on the same lean, asset-light philosophy. ## 1. Precious metals and financial trading: the company's sole operating engine **A pure intermediary business that buys and sells gold, diamonds, shares and derivatives without ever manufacturing anything - it makes money on the spread, not on production.** - **One reported segment for everything** - the company has always reported a single business segment: "trading in Commodities, Bullions, Gold Jewellery, Diamonds, Derivatives, Shares and Securities," because all revenue comes from the same activity of buying and reselling, whether the item is physical gold or a futures contract. - **Gold is the dominant product** - in FY20, bullion and jewellery made up over 97% of total turnover, classified under the wholesale of precious metals and jewellery (NIC Code 46498), so the business is overwhelmingly a gold-trading operation with other commodities and securities as sidelines. - **Imported gold drives the engine** - the company procures both imported and domestic gold, and its foreign-exchange outgo reveals the scale: over Rs. 85,000 lakhs in FY24 alone, meaning the business depends heavily on international gold markets and is exposed to dollar and pound fluctuations. - **Revenue booked when control passes** - sales are recognised at a point in time when control transfers to the customer, with freight included where charged; for share trades settled within the same period, only the net gain or loss is booked, keeping the reported numbers clean. - **Derivatives are part of the daily toolkit** - the company trades futures and options in equity, index, currency and commodity markets, marking them to market through the profit-and-loss statement, and settles some with actual delivery of the underlying asset. ## 2. Gold refining: a joint-venture extension into processing **A 50:50 refinery partnership with a Dubai-based metals trader that turns gold and silver dore and scrap into finished products - it adds a processing margin to the group's trading flows.** - **Built, not bought** - IGR AUSOM LLP was formed in July 2019 with IGR Metals Trading DMCC of Dubai, and the refinery began commercial production in August 2023, after four years of capital deployment that saw Ausom's contribution grow from Rs. 225.09 lakhs to Rs. 484.10 lakhs. - **Feeds and is fed by the trading arm** - Ausom Enterprise and IGR AUSOM LLP buy and sell gold and jewellery between themselves to ensure uninterrupted operations and timely availability of goods, so the refinery and the trading desk are interlocking parts of the same supply chain. - **Shared leadership** - directors Kishor P. Mandalia and Vipul Z. Mandalia sit on the boards of both Ausom Enterprise and the refinery LLP, meaning the same family expertise that runs the trading business also oversees the refining operation. - **Sourcing flexibility** - the refinery purchases gold and silver in multiple forms - dore, bar, scrap and grain - from both local and imported sources, and sells finished products domestically or for export, giving it multiple ways to capture margin depending on market conditions. ## 3. Solar power generation: a greenfield bet under construction **A wholly owned subsidiary incorporated in late 2024 to enter renewable power generation - it has a name, a balance sheet and an accounting policy, but no operations yet.** - **Incorporated with intent** - Amazo Solar Power Private Limited was formed on 26 November 2024 with an authorised capital of Rs. 1 crore, and Ausom Enterprise subscribed to the full equity at face value during FY25, putting Rs. 100 lakhs into the venture. - **The mandate is broad** - the subsidiary is authorised to generate and distribute electric power through solar, wind or any other energy generation plant, so it is not locked into a single technology before it starts. - **Accounting is ready before the business is** - the company has already established a revenue-recognition policy for electricity transmission, booking revenue at the point of dispatch to the customer with no uncertainty as to realisation, which signals that the framework for operations is being built ahead of commercial launch. # Group structure and partners **A family-controlled listed parent surrounded by joint ventures and related-party entities that share directors, trading flows and funding - the Mandalia network is the operating system.** - **The listed parent is debt-free and tightly held** - Ausom Enterprise Limited is listed on the BSE and NSE, and as of March 2020 the Mandalia family promoters held nearly 74% of the equity with no shares pledged, giving them control without financial leverage at the parent level. - **Three active joint ventures sit alongside the refinery** - Swadeshi Distributors LLP, in which Ausom holds an 80% profit-and-loss share, owns a hydro project at Salun in Himachal Pradesh; Bsafal.KZ Estate LLP carries a capital contribution of over Rs. 2,054 lakhs; and a fourth LLP, Amazo Waste Management Solution, was dissolved by May 2023. - **Related-party trading is built into the model** - Zaveri and Company Private Limited and Ausil Corporation Private Limited, both in the gold and jewellery business, buy from and sell to Ausom Enterprise, and also provide and receive loans and advances for funding business requirements. - **Funding flows through multiple channels** - the company uses inter-corporate deposits, loans, subscriptions, capital contributions and purchases of securities to fund its own operations and those of its joint ventures, covering both temporary cashflow needs and business development.