Gold Hub

Trading in the Current System

The current system of traders coming to bigger cities and metros to buy Bullion & Gems is fraught with various problems as below:

1. Transportation of Gold, Silver & Gems to other cities is a time consuming, inefficient with substantial expenses.

2. Huge risk for the trader during transportation with high probability of theft.

3. Very high uncertainty about purity of Gold.

4. Doubtful best price.

5. Lack of a digitized system within the trader establishment

6. Marketing & promotional expertise available to generate demand & increase sales.

7. To meet the demand of Bullion in Tier 1,2 & 3 towns, traders come to the bigger cities

Solutions

⚫ Gold Hub is a micro- distribution of Gold to increase the efficiency, accountability & cost effectiveness of micro-distribution, as ultra modern Gold Depository Hubs across various districts/towns in India in last mile Delivery process.

⚫ Also the delivery lead time reduces drastically, without compromising the security managing protocols and judiciously managing the cost of logistic support system

⚫ The Gold depository Hub system will create a lot of synergy amongst the stakeholder and the process is extremely cost effective while the delivery of gold to the beneficiaries is lightening fast.

⚫ This Gold Hub would be equipped with sophisticated software’s and gadgetry to cater to all the needs of the Traders.

⚫ Goldsikka shall provide Best Price with calculation parameters Entry Port of India.

⚫ Gold Hub would be equipped with purity testing machines to guarantee the purity of Bullion.

⚫ Rightly and Timely Hedging of the metal to Protect price erosions.

Business Model

1. Appoint and / or Establish Gold Hubs under Models viz DOCO,CODO & DODO which will be serviced by the Gold Hub strategically located across the country.

2. Goldsikka shall provide Best Price with calculation parameters Entry Port of India.

3. Goldsikka shall provide & deposit Gold, Silver & Precious stones as per the respective Gold Hub sales projections.

   (a) Quarterly review of stock maintenance shall happen after analyzing the actual sale movement.

4. It would be the responsibility of Goldsikka to source the metal at best possible rates at the entry port of India.

5. All accounting system & tax compliances & payments will be Goldsikka’s responsibility.

6. All technology platforms will be provided for, maintained & upgraded by Goldsikka.

7. All publicity, promotions &security will be Goldsikka’s responsibility.

8. All Technological Hardware, Security Hardware & Functional Hardware shall be provided by Goldsikka.

9. All metals & stones will be of Genuine agreed purity. Tested to your satisfaction.

10. Goldsikka will provide digital locker to each Gold Hub with high security and 24 hours CCTV surveillance.

11. Goldsikka will provide Purity testing machine for gold scrap.

12. Transportation of metal delivery & security will be taken care of by Goldsikka

Sizing of Gold Hub’s Area

Sizing of the Gold Hub area is done by calculating population density and specific fragmented area such as City, Town, and Districts & Mandals in all states of India, Broad based distribution network is established in the country by state wise divide, further each state is divided by districts, while each district is divided by Mandals. Gold Hub can be assigned to each of this fragmented area/place In metro, tier I & tier II cities sizing is done on directional basis that is North,South, East, west ¢ral. Each directional zone is further divided by Police stations in that particular zone. Police station gives us a fair idea of the population density spread in a particular zone based on the area and population density in that area, we can assign the number of Gold Hub required to service the area in anefficient wayIn remote areas such as villages, Panchayat can be used to determine the number of Gold Hub required to service a group of villages in a Mandal post offices in micro towns can be used to mark the jurisdiction of the Gold Hub appointed.

Product Portfolio : -

⚫ Bullion Gold Sale

⚫ Gold Scrap Purchase

Product 1 Bullion Gold Sale :

Goldsikka has affiliated tie ups with MMTC Limited, MMTC PAMP & Banks with Bullion Portfolio and other dedicated gold refineries for providing highest purity Gold Bars/ Biscuits. Goldsikka will provide uninterrupted supply of extremely superior quality gold bars to Bulk buyers at very competitive prices.

Product 2 Gold Scrap Purchase :

The Gold Hub will also be collection and purchase center for Gold and Silver Scrap.

The Stake Holders

⚫ Gold Hub form the crux of the micro- distribution system. The Gold Hub can be a Jewelry shop, Pawn shop or any company having a commercial space/office for dealing and well verged with the topography of the area of operation (Town / District / Mandal ).

Modus Operandi

1. All Business Financials are upfront

2. The Gold Hub member will necessarily have to stock physical gold, minimum of 1 Kg in their custody.

3. The member will receive online delivery instruction from Goldsikka Ltd., while the member will make necessary arrangements to deliver the physical gold to the benefited customer as per the instructions of Goldsikka.

4. The physical stock of gold with the Hub members will be replenished by Goldsikka Ltd at regular intervals or on demand, as the case may be.

5. The Hub member will manage the logistic support system needed for the last mile delivery to the beneficiary and share the information with Goldsikka Ltd. In real time.

6. The Hub member will have the choice to deliver Gold bullion as per the intent of the purchaser of the beneficiary. All the gold transactions, buying or selling will be benchmarked on prevailing market price.

Role of a Gold Hub member :

⚫ Role of a Gold Hub is an important activity in the integrated supply-chain management of Goldsikka Limited. Various people and entities are generally responsible for the handling, storage and distribution of our products. The Gold Hub is the face of our services. A Gold Hub has constant interaction with the retailers on a daily, weekly or monthly basis with regards to systems and services; also Gold Hub is information channel for the company through time to time interaction with our field personnel for review of market scenario, there after relevance ideas communicate to the Head Office for future aspects of the business. The Gold Hub functions as an intermediary to Goldsikka limited. A Gold Hub ensures smooth delivery of all our products to all parts of the city, town, Districts or even in remote villages within India. The Gold Hub also serves as a store house where the products of Goldsikka are kept as a buffer to immediately supply to its retailers when the need arises.

Authority of a Gold Hub

⚫ Gold Hub is an official and legitimate prime sales entity of Goldsikka Limited .Almost entire sale is routed through Gold Hub network all over India. Gold Hub has to oversee the marketing operations through retail channel in their bonafied area, while advising the company regarding future sales projection and providing feedback of the esteem customers.

SUMMARY - WIN-WIN FOR ALL :

⚫ The synergies in this type of micro- distribution are maximized, between the stakeholders as very limited resources can fulfill the Gold delivery obligations to the Purchasers. Use of real time online management of stocks & delivery schedules together with live positioning of the Purchaser can help to schedule quick time delivery at a very minimum cost of operation. A network of such Gold depository Hubs across India can bring down the delivery time and associated logistic cost. Adequate hedging of the stocked gold inventory at the Hubs will protect the value erosion in case of a steep fall in global gold prices. Advanced technological framework can integrate the operational procedures between stakeholders & end beneficiary, which will make the network of gold depository Hubs work seamlessly well. Security cost involved in the movement of physical gold is optimized and reduced drastically benefiting the stake holder. Micro- distribution can help for better penetration in remote rural areas which are not covered at present with conventional methods of distribution.