Mar 31, 2018
DIRECTORSâ REPORT
To,
The Members of
Kabra Extrusiontechnik Limited,
Mumbai
The Directors are pleased to present the Thirty-Fifth Annual Report together with the Audited Financial Statements for the year ended 31st March, 2018.
1. Financial / Operational Performance:
(Rs, in Lakhs)
Particulars |
Standalone |
Consolidated |
||
FY 2017-18 |
FY 2016-17 |
FY 2017-18 |
FY 2016-17 |
|
Revenue from operations Other Income |
27,146.66 257.01 |
29,849.62 221.75 |
27,146.66 257.01 |
29,849.62 221.75 |
Total income (A) |
27,403.67 |
30,071.37 |
27,403.67 |
30,071.37 |
Expenses: Cost of material consumed |
17,834.82 |
17,857.20 |
17,834.82 |
17,857.20 |
Changes in inventories of finished goods, stock-in-trade & work-in-progress |
(1,101.10) |
(346.83) |
(1,101.10) |
(346.83) |
Excise Duty |
334.09 |
2,242.29 |
334.09 |
2,242.29 |
Employee benefits expense |
3,440.81 |
3,137.43 |
3,440.81 |
3,137.43 |
Finance Cost |
147.82 |
193.15 |
147.82 |
193.15 |
Depreciation and amortisation expense |
793.40 |
698.95 |
793.40 |
698.95 |
Other Expenses |
3,819.57 |
3,973.41 |
3,819.57 |
3,973.41 |
Total expenses (B) |
25,269.41 |
27,755.60 |
25,269.41 |
27,755.60 |
Profit/(Loss) before share in Profit/(Loss) of Joint Ventures / subsidiaries, exceptional items & tax (A- B) |
2,134.26 |
2,315.77 |
2,134.26 |
2,315.77 |
Share of net profit/(loss) of Associates and joint ventures accounted for using the equity method |
- |
- |
(12.20) |
(33.12) |
Tax expenses: Current Tax |
499.07 |
453.29 |
499.07 |
453.29 |
MAT Credit entitlement |
(383.95) |
(440.33) |
(383.95) |
(440.33) |
Deferred Tax |
7.38 |
227.30 |
7.38 |
227.30 |
Profit/(Loss) for the period |
2,011.77 |
2,075.51 |
1,999.57 |
2,042.40 |
There are no material changes or commitments, affecting the financial position of the Company between the end of the Financial Year of the Company to which the financial statements relate and the date of this Report.
2. Dividend and Transfer to Reserves:
Your Directors recommend a dividend of 40% i.e. Rs, 2.00 per equity share of face value of Rs, 5.00 each, aggregating to Rs, 638.05 Lakhs (Previous Year: Rs, 638.05 Lakhs). The balance in the Statement of Profit and Loss after adjusting the appropriations for the year is Rs, 12,862.65 Lakhs. There was no transfer to the General Reserve.
3. Exports:
Exports during the year is Rs, 7,433.67 Lakhs as against previous yearâs export of Rs, 8,685.62 Lakhs and is about 28.09% of the total Sales Revenue.
4. Directors:
Shri Varun S. Kabra resigned as a Director and Director - Business Development w.e.f. 13th September, 2017. The Board places on record its sincere appreciation for the services rendered by him during his tenure as Director of the Company.
Shri Anand S. Kabra, Director is liable to retire by rotation subject to Section 152 of the Companies Act, 2013 (âthe Actâ) at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment. Shri Anand S. Kabra was elevated to the position of Managing Director with effect from 13th September, 2017 and holds office till 31st July, 2018. His re-appointment as a Managing Director for a term of 5 (five) years has been approved by the Board of Directors at its meeting held on 25th May, 2018, subject to its approval by the Members. The Board of Directors recommends his re-appointment as a Director and as a Managing Director.
Shri Satyanarayan G. Kabra, Vice Chairman & Managing Director of the Company, holding such position from 01st July 2013 to 30th June 2018 has requested the Board to relieve him from the position of Managing Director i.e. 01st July 2018. The Board reluctantly accepted such request. He shall continue to act as a Non-Executive Director, holding the position of Vice Chairman of the Company.
The Board is seeking approval of the Members to continue the directorship of the Non-Executive Directors who are of age 75 years or more as provided under the amended SEBI Regulations.
5. Independent Directors and Key Managerial Personnel:
A separate meeting of Independent Directors was held on 31st January, 2018 in compliance of Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV to the Act, without the presence of Executive Directors. Performance of Non-Independent Directors, performance of the Board as a whole and of Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive Directors and on the basis of evaluation criteria.
The Company has conducted a formal annual performance evaluation, by the Board of its own performance & that of its committees and individual Directors, including the Executive Chairman and the Independent Directors, as per the laid down criteria.
All independent directors have given declaration that they meet the criteria of independence as provided in Section 149 (6) of the Act, and Regulation 16 and 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There has been no change in the circumstances, which has affected their status as independent director. In the opinion of the Board, they fulfill the conditions of independence as specified and are independent of the Management. Non-Executive Directors of the Company had no pecuniary relationship other than payment of sitting fee to them for attending meetings of Board and its Committees.
Shri Yogesh M. Dave ceased to be Chief Financial Officer and Key Managerial Personnel i.e. 13th September, 2017 upon his retirement. Shri Yogesh D. Sanghavi ceased to be Company Secretary, Compliance Officer and Key Managerial Personnel i.e. 01st September, 2017 upon his retirement.
Shri Daulat R. Jain has been appointed as Chief Financial Officer and Key Managerial Personnel w.e.f. 14thSeptember, 2017 in compliance of Section 203 of the Companies Act, 2013.
Smt. Arya K. Chachad has been appointed as Company Secretary, Compliance Officer and Key Managerial Personnel i.e. 14th September, 2017 in compliance of Section 203 of the Companies Act, 2013 and other statutory provisions.
The aforesaid appointments are based on the recommendations of the Nomination and Remuneration Committee of the Board.
6. Directorsâ Responsibility Statement and Internal Financial Control:
Pursuant to Section 134(3) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge confirm that:
i. in the preparation of annual accounts for the year ended 31st March, 2018, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
ii. they have selected such appropriate accounting policies and applied them consistently, and made judgments and estimates that were reasonable and prudent so as to give the true and fair view of the state of affairs of the Company as at 31st March, 2018, and of the profits of the Company for the said Financial Year;
iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. they have prepared the said accounts on a âgoing concern basisâ;
v. they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
The Board is of opinion that the Companyâs Internal Financial Controls were adequate and effective during the Financial Year 2017-18. The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control systems and suggests improvements to strengthen the same. The Audit Committee of the Board of Directors, Statutory Auditors and Departmental Heads are appraised of the internal audit findings and corrective actions taken. The Statutory Auditors of the Company have reported on adequacy of internal control in their Report.
7. Subsidiary / Associate Companies and Consolidated Financial Statements:
The Company has adopted a policy for determining material subsidiaries in terms of Regulation 16(1) (c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which is uploaded on http://www. kolsite.com/Upload/Financial Result/MATERIAL%20SUBSIDIARY%20POLICYpdf.
Kabra Mecanor Belling Technique Pvt. Ltd., has become a subsidiary of the Company i.e. 09th November, 2017 upon making investment of Rs, 4.98 Lakhs as a subscriber to its Memorandum of Association out of Paid-up Capital of Rs, 5 Lakhs of said Company. It is yet to commence its commercial operations. It has suffered loss of Rs, 32,195/- for the period from 09th November, 2017 to 31st March, 2018 on account of incorporation expenses incurred by it.
Punta Auto Feeding India Ltd. (Punta) is an associate company within the meaning of Section 2(6) of the Companies Act, 2013. Punta has reported sales revenue of Rs, 87.24 Lakhs and Loss of Rs, 61.35 Lakhs for the year ended 31st March 2018.
A statement containing the salient features of the financial statements of associate company and subsidiary in the prescribed format AOC-1 is annexed as Annexure-1 to this Report. The Company does not have any material unlisted Indian subsidiary company.
The Consolidated Financial Statements relate to the Company, its subsidiary and its associate / joint venture company, Punta Auto Feeding India Ltd. and Kabra Mecanor Belling Technique Pvt. Ltd. These consolidated
financial statements are prepared in compliance with all the applicable Accounting Standards. Separate audited financial statements of both the above companies are posted onto website of the Company at: http:// www.kolsite.com and hence the same are not annexed with this Annual Report and the same will be made available to any shareholder of the Company, on request.
8. Particulars of Loans, Guarantees or Investments:
The Company has not given any loans or guarantees or provided any security during the year. Details of Investments made during the year under review are given in the Notes to the Financial Statements.
9. Public Deposits:
Your Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposit from public was outstanding as on the date of the Balance Sheet.
10. Related Party Transactions:
All Related Party Transactions that were entered into during the Financial Year under review were on an armâs length basis, in the ordinary course of business. Prior omnibus approval of the Audit Committee is obtained for the transactions which are repetitive in nature. A statement of all Related Party Transactions is placed before the Audit Committee for its review on a quarterly basis, specifying nature, value, terms and conditions of the transactions. The Company has not entered into any material related party transaction during the year under review. The Company has adopted a Policy on materiality of Related Party Transactions and dealing with the same, as approved by the Board and is uploaded on the Companyâs website: http://www.kolsite.com/Upload/FinancialResult/RELATED%20PARTY%20TRANSACTION%20POLICY.pdf
The details of the transactions with Related Parties are provided in the accompanying financial statements.
11. Risk Management:
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on continuing basis.
12. Significant and material orders passed by the Regulators or Courts:
No Significant Material Orders have been passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
13. Number of Meetings of the Board:
During the year under review, 4 (four) meetings of the Board were held, as detailed in the Corporate Governance Report, forming part of this Annual Report. The Company has complied with the relevant Secretarial Standards.
14. Audit Committee Composition:
Audit Committee composition is presented in Corporate Governance Report. There have not been any instances during the year, when recommendations of the said committee were not accepted by the Board.
15. Corporate Governance:
A separate section on Corporate Governance is included in this Report as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Corporate Governance Compliance Certificate received from M/s. Kirtane & Pandit LLP, Chartered Accountants, Statutory Auditors of the Company, is also attached to this Report.
16. Management Discussion and Analysis:
The Management Discussion and Analysis Report on the operations of the Company, as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is provided in a separate section and forms an integral part of this Report.
17. Measures for prevention of sexual harassment at work place:
The Company pursuant to Section 4 of the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressed) Act, 2013 and Rules made there under, had constituted the Internal Complaints Committee. During the year, no complaint was lodged with the Committee.
18. Statutory Auditors and their Report:
M/s. Kirtane & Pandit LLP, a firm of Chartered Accountants were appointed as the Statutory Auditors of the Company for One term of 5 (five) consecutive years to hold office from the conclusion of the 31st Annual General Meeting until the conclusion of the 36th Annual General Meeting. The Company has received their eligibility certificate subject to Section 139 and 141 of the Act and Rules made there under.
Section 139(1) related to ratification has been done away with vide notification dated 07th May, 2018 issued by the Ministry of Corporate Affairs. There is no audit qualification in the Financial Statements by the Statutory Auditors for the year under review.
During the year, the Statutory Auditors had not reported any matter under Section 143(12) of the Act, therefore no detail is required to be disclosed under Section 134(3)(ca) of the Companies Act, 2013.
19. Cost Auditors:
As per Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has appointed M/s. Urvashi Kamal Mehta & Co., a firm of Cost Accountants as the Cost Auditor of your Company to conduct audit of Cost Accounting records for the Financial Year 2018-19 on the recommendation made by the Audit Committee. M/s. Dhara Shah & Associates have given their NOC to appoint any other Cost Accountant in practice as a Cost Auditor.
The remuneration of Rs, 1,20,000/- (Rupees One Lakh Twenty Thousand Only) excluding applicable taxes, Conveyance and out of pocket expenses, if any, proposed to be paid to the said Cost Auditors in respect of the said audit is subject to the ratification by the Members at the ensuing Annual General Meeting. Members are requested to consider the ratification of their remuneration payable for the Financial Year ending 31 st March,
2019. M/s. Dhara Shah & Associates have conducted audit of Cost Accounting Records in respect of the Financial Year 2017-18 and report thereon shall be finalized and filed as statutorily provided.
20. Secretarial Auditors and their Report:
Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed M/s. Bhandari & Associates, a firm of Company Secretaries in practice to undertake the Audit of secretarial and related records for the Financial Year ended 31st March, 2018. Their Report is annexed as Annexure-2 to this Report. There is no adverse remark or qualification in their report.
21. Corporate Social Responsibility (CSR):
The Board has constituted a Corporate Social Responsibility Committee headed by Shri S. V. Kabra as Chairman, as detailed in the Corporate Governance Report, forming part of this Annual Report. CSR policy was also adopted in compliance with the provisions of section 135 of the Companies Act, 2013 and is uploaded on the Companyâs website: http://www.kolsite.com/Upload/FinancialResult/REVISED%20CSR%20POLICY.pdf
Further, additional information on the CSR Policy and implementation of CSR activities by your Company during the year under review are provided in Annexure-3. During the year, the Company has spent specific amount as detailed in Annexure-3, as process of identifying activities/projects is ongoing to be in line with the CSR objectives of the Company.
22. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed as Annexure-4 to this Report.
23. Nomination & Remuneration Policy:
Extract of Companyâs Policy on Directorâs appointment and remuneration and other matters provided in Section 178 (3) of the Companies Act, 2013 has been disclosed in Annexure-5 to this Report.
24. Vigil Mechanism & Whistle Blower Policy:
The Company has framed a policy on Vigil Mechanism-Whistle Blower, enabling all the employees and other stakeholders of the Company to report any matter/activity on account of which the interest of the Company may be adversely affected, as a Protected Disclosure. This Policy has been placed on the companyâs website at:
http://www.kolsite.com/Upload/FinancialResult/VIGIL%20MECHANISM%20WHISTLE%20BLOWER%20POLICY.pdf . No complaint has been received during the year under review.
25. Particulars of employees and remuneration:
The information required under Section 197(12) of the Act read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed as Annexure-6.
26. Extract of Annual Return:
Pursuant to Section 92(3), 134(3)(a) of the Act read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, the extract of Annual Return in Form No. MGT-9 is annexed as Annexure-7.
27. Employee Relations:
Employee relations continued to be cordial. The Company takes pride in the commitment and dedication shown by its employees in all areas of business.
28. Acknowledgement:
Your Directors would like to express their appreciation for the support received from the Shareholders, Bankers, Government Authorities, Stock Exchanges, Customers, Suppliers and Business Associates at all levels during the year under review.
Belling Technique Pvt. Ltd., and will manufacture Corrugators with technology from Unicorn GmbH, Germany during the Financial Year 2018-19. The Company has imported technology to manufacture Flat-Drip Laterals Extrusion Lines from Metzerplas Industries Ltd., Israel.
PVC Pipe Processing Industry in India is undergoing transformation phase of using Lead stabilizers for several decades to Lead Free, due to recent concerns on the grounds of health hazards. The Company is geared up to provide a technological solution to face the upcoming challenges to process Lead-Free stabilizers by upgrading the existing set up of its customers. The Company has developed a retrofit KIT with successful proven performance in the field and now has an effective solution to offer to PVC Pipe processors.
The Company continuously focuses on safety of environment and is increasing its awareness amongst the employees of the Company. Measures are being taken continuously to control cost on all fronts.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Companyâs internal audit system is geared towards ensuring adequate internal controls commensurate with the size and needs of the business, with the objective of efficient conduct of operations through adherence to the Companyâs policies, identifying areas of improvement, evaluating the reliability of financial statements, ensuring compliance with applicable laws and regulations and safeguarding of assets from unauthorized use.
The Company has appointed a firm of Chartered Accountants as Internal Auditors in compliance of Section 138 of the Companies Act, 2013 to conduct internal audit of functions and activities of the Company. They report on quarterly basis to the Company on their findings. Their Report is reviewed by the Audit Committee of the Board.
7. FINANCIAL & OPERATIONAL PERFORMANCE:
Your Company has a low debt equity ratio and is well placed to service its borrowings made by way of working capital facilities.
No financial defaults of whatsoever nature were reported during the year under review.
8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:
Industrial relations during the year were cordial and peaceful without any disruption of manufacturing activities. Programmes aiming at leadership development and up gradation with advancing technology on all fronts were conducted during the year. Manpower as on 31st March, 2018 including Workers, Staff and Executives was 482.
9. CAUTIONARY STATEMENT:
Actual performance may differ from projections made, as the Companyâs operations are subject to various economic conditions, government regulations and other incidental factors.
For and on behalf of the Board
Place : Mumbai
Date : 25th May, 2018 S. V. Kabra
Chairman & Managing Director
(DIN:00015415)
Mar 31, 2017
DIRECTORSâ REPORT
To,
The Members of
Kabra Extrusiontechnik Limited,
Mumbai
The Directors are pleased to present the THIRTY-FOURTH ANNUAL REPORT together with the AUDITED STATEMENT OF ACCOUNTS for the year ended 31st March, 2017.
1. FINANCIAL PERFORMANCE:
(Rs. in Lacs)
PARTICULARS |
FY 2016-17 |
FY 2015-16 |
Revenue from Operations and Other Income |
28,760.87 |
32,142.69 |
Gross Profit before Finance Cost & Depreciation |
4,086.76 |
6,051.82 |
Less: Finance Cost |
193.15 |
176.59 |
Depreciation |
698.95 |
870.54 |
Profit Before Tax and exceptional item |
3,194.66 |
5004.69 |
Less: Provision for Diminution in long-term investments |
-- |
(1,850.00) |
Profit Before Tax |
3,194.66 |
3,154.69 |
Add / (Less): Provision for Taxation |
(675.00) |
(1,030.00) |
Excess Provision of earlier year |
-- |
22.42 |
Provision for Deferred Tax |
(190.59) |
100.34 |
MAT Credit entitlement |
440.33 |
-- |
Net Profit After Tax & Deferred Tax |
2,769.40 |
2,247.45 |
Balance b/f from previous year |
8,240.56 |
7,082.00 |
Amount available for appropriation |
11,009.95 |
9,329.45 |
APPROPRIATIONS: |
||
Transferred to General Reserve |
275.00 |
225.00 |
Interim Dividend / Proposed Dividend1 |
-- |
717.80 |
Tax on Interim / Proposed Dividend* |
-- |
146.13 |
Surplus balance carried to Balance Sheet |
10,734.96 |
8,240.56 |
11,009.95 |
9,329.45 |
2. DIVIDEND:
Your Directors are pleased to recommend a dividend @ 40% i.e. Rs. 2/- per equity share of face value of Rs. 5/each for the financial year 2016-17subject to the Members'' approval [@ 45% i.e. Rs. 2.25 per equity share of face value of Rs. 5/- each for the previous year].
4. OPERATIONS AND OUTLOOK:
The Company has achieved Operational and Other Income for the year under review at Rs. 28,760.87 Lacs as against the previous year''s Operational and Other income of Rs. 32,142.49 Lacs. The profit before tax and exceptional item was Rs. 3,194.66 Lacs against the previous year''s profit of Rs. 3,154.69 Lacs. Net profit of the Company after exceptional items and tax was Rs. 2,769.39 Lacs against Rs. 2,247.45 Lacs of the previous year.
5. EXPORTS:
Exports during the year is Rs. 8,685.62 Lacs as against previous year''s export of Rs. 8,244.90 Lacs and is about 31.46% of Total Sales Revenue turnover.
6. DIRECTORS:
Shri Satyanarayan G. Kabra and Smt. Jyoti V. Kabra, Directors of the Company are liable to retire by rotation in accordance with the provisions of Section 152 of the Companies Act, 2013 at the ensuing Annual General Meeting and are eligible for re-appointment. Smt. Jyoti V. Kabra has indicated to the Company that she is not seeking re-appointment. The Board placed on record its appreciation for valuable services rendered by Smt. Jyoti V. Kabra during her tenure as Director. The Board proposed that the vacancy caused by her retirement be not filled. The Board of Directors recommends the re-appointment of Shri Satyanarayan G. Kabra.
Shri Boman Moradian and Smt. Ekta A. Kabra have been appointed as Additional Directors by the Board at its meeting held on 16th May, 2017 and hold office up to the date of ensuing AGM. Shri Boman Moradian has been appointed in category of Independent Director. Smt. Ekta A. Kabra being appointed as Executive Director to be designated as Director - Strategy w.e.f. 01st August, 2017. Members'' approval for their appointment is sought.
7. INDEPENDENT DIRECTORS AND KEY MANAGERIAL PERSONNEL:
A separate meeting of Independent Directors was held in compliance of Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Schedule IV to the Act, without the presence of Executive Directors. Performance of Non-Independent Directors, performance of the Board as a whole and of Chairman was evaluated, taking into account the views of Executive Directors and Non-Executive Directors and on the basis of evaluation criteria.
The Company has conducted a formal annual performance evaluation, by the Board of its own performance & that of its committees and individual Directors, including the Executive Chairman and the Independent Directors, as per the laid down criteria.
All independent directors have given declaration that they meet the criteria of independence as provided in Section 149 (6) of the Act, and Regulation 16 and 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There has been no change in the circumstances, which has affected their status as independent director. In the opinion of the Board, they fulfill the conditions of independence as specified and are independent of the Management. Non-Executive Directors of the Company had no pecuniary relationship other than sitting fee for attending meetings.
Shri Yogesh M. Dave, General Manager - Finance of the Company has been recognized as Chief Financial Officer of the Company in compliance of Section 203 of the Companies Act, 2013.
8. DIRECTORS'' RESPONSIBILITY STATEMENT AND INTERNAL FINANCE CONTROL:
Pursuant to Section 134(3) and 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge confirm that:
i. in the preparation of annual accounts for the year ended 31st March, 2017, the applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;
ii. they have selected such appropriate accounting policies and applied them consistently, and made judgments and estimates that were reasonable and prudent so as to give the true and fair view of the state of affairs of the Company as at 31st March, 2017, and of the profits of the Company for the said financial year;
iii. they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. they have prepared the said accounts on a ''going concern basis'';
v. they have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and
vi. they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.
The Board is of opinion that the Company''s Internal Financial Controls were adequate and effective during the financial year 2016-17.The Audit Committee of the Board of Directors reviews the adequacy and effectiveness of internal control systems and suggests improvements to strengthen the same.The Audit Committee of the Board of Directors, Statutory Auditors and Departmental Heads are appraised of the internal audit findings and corrective actions taken. Statutory Auditors of the Company have reported on adequacy of internal control in their Report.
9. SUBSIDIARY / ASSOCIATE COMPANIES AND CONSOLIDATED FINANCIAL STATEMENTS:
The Company has adopted a policy for determining material subsidiaries in terms of Regulation 16(1) (c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which is uploaded on http://www.kolsite.com/Upload/FinancialResult/MATERIAL%20SUBSIDIARY%20POLICY.pdf. The Company has no subsidiary company, nor has any company become or ceased to be a subsidiary of the company. The Company does have an associate or joint venture company, Penta Auto Feeding India Ltd. (Penta) within the meaning of Section 2(6) of the Companies Act, 2013. A statement containing the salient features of the financial statement of associate company / joint venture in the prescribed format AOC-1 is annexed herewith as Annexure -1 to this Report. Penta has commenced its commercials operations and has reported a sales revenue of Rs. 35 Lacs and Loss of Rs. 65.77 Lacs for the year ended 31st March 2017.
The Consolidated Financial Statements relate to the Company and its associate / joint venture company, Penta Auto Feeding India Ltd. These consolidated financial statements are prepared in compliance with all the applicable Accounting Standards. Separate audited accounts of Penta Auto Feeding India Ltd. are posted onto website of the Company at: http://www.kolsite.com/Upload/FinancialResult/PENTA%20F.Y%202016-17.pdf and hence the same are not annexed with this Annual Report. The separate audited financial statements of Penta Auto Feeding India Ltd. will also be made available to any shareholder of the Company, on request.
10. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has not given any loans or guarantees or provided any security during the year. Details of Investments made during the year under review are given in the notes to financial statements.
11. PUBLIC DEPOSITS:
Your Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposit from public was outstanding as on the date of the Balance Sheet.
12. RELATED PARTY TRANSACTIONS:
All Related Party Transactions that were entered into during the financial year under review were on an arm''s length basis, in the ordinary course of business. Prior omnibus approval of the Audit Committee is obtained for the transactions which are repetitive in nature. A statement of all Related Party Transactions is placed before the Audit Committee for its review on a quarterly basis, specifying nature, value, terms and conditions of the transactions. The Company has not entered into any material related party transaction during the year under review. The Company has adopted a Policy on materiality of Related Party Transactions and dealing with the same, as approved by the Board and is uploaded on the Company''s website:
http://www.kolsite.com/Upload/FinancialResult/ RELATED%20PARTY%20TRANSACTION%20POLICY.pdf The details of the transactions with Related Parties are provided in the accompanying financial statements.
13. RISK MANAGEMENT:
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on continuing basis.
14. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS:
No Significant Material Orders have been passed by the Regulators or Courts or Tribunals which would impact the going concern status of the Company and its future operations.
15. NUMBER OF MEETINGS OF THE BOARD:
During the year under review, 4 (four) meetings of the Board were held, as detailed in the Corporate Governance Report, forming part of this Annual Report.
16. AUDIT COMMITTEE COMPOSITION:
Audit Committee composition is presented in Corporate Governance Report. There have not been any instances during the year, when recommendations of the said committee were not accepted by the Board.
17. CORPORATE GOVERNANCE:
A separate section on Corporate Governance is included in this Report as required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Corporate Governance Compliance Certificate received from M/s. Kirtane & Pandit LLP, Chartered Accountants, Statutory Auditors of the Company, is also attached to this Report.
18. MANAGEMENT DISCUSSION AND ANALYSIS:
The Management Discussion and Analysis Report on the operations of the Company, as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is provided in a separate section and forms an integral part of this Report.
19. MEASURES FOR PREVENTION OF SEXUAL HARASSMENT AT WORK PLACE:
The Company pursuant to the Section 4 of the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013 and Rules made there under, had constituted the Internal Complaints Committee. During the year, no complaint was lodged with the Committee.
20. STATUTORY AUDITORS AND THEIR REPORT:
M/s. Kirtane & Pandit LLP, a firm of Chartered Accountants were appointed as a Statutory Auditors of the Company for One term of 5 (five) consecutive years to hold office from the conclusion of the 31st Annual General Meeting until the conclusion of the 36th Annual General Meeting (AGM). The Company has received their eligibility certificate subject to Section 139 and 141 of the Act and Rules made there under. Their appointment has to be ratified in terms of Section 139 (1) of the Companies Act, 2013.
Members are requested to consider the ratification of their re-appointment at the forthcoming AGM and authorize the Board of Directors to fix their remuneration. There is no audit qualification in the financial statements by the Statutory Auditors for the year under review.
During the year, the Statutory Auditors had not reported any matter under Section 143(12) of the Act, therefore no detail is required to be disclosed under Section 134(3)(ca) of the Companies Act, 2013.
21. COST AUDITORS:
As per Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors of your Company has appointed M/s. Dhara Shah & Associates, a firm of qualified Cost Accountants as the Cost Auditor of your Company to conduct audit of Cost Accounting records for the financial year 2017-18 on the recommendation made by the Audit Committee.
The remuneration of Rs. 1,20,000/- (Rupees One Lac Twenty Thousand Only) excluding Service Tax, Conveyance and out of pocket expenses, if any, proposed to be paid to the said Cost Auditors in respect of the said audit is subject to the ratification by the Members at the ensuing Annual General Meeting. They have conducted audit of Cost Accounting Records in respect of the financial year 2016-17 and report thereon shall be finalized and filed as statutorily provided.
Members are requested to consider the ratification of their remuneration payable for the financial year ending 31st March, 2018.
22. SECRETARIAL AUDITORS AND THEIR REPORT:
Pursuant to the provisions of Section 204 of the Act and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the Company had appointed M/s. Bhandari & Associates, a firm of Company Secretaries in practice to undertake the Secretarial Audit for the financial year ended 31st March, 2017. Their Report is annexed as Annexure-2 to this Report.
In respect of comment of Secretarial Auditors in their report and of Statutory Auditors in certificate on Corporate Governance regarding Board composition, the Company has proposed the appointment of Mr. Boman Moradian as an Independent Director subject to your approval at the ensuing Annual General Meeting.
23. CORPORATE SOCIAL RESPONSIBILITY (CSR):
The Board has constituted a Corporate Social Responsibility Committee headed by Shri S. V. Kabra as Chairman, as detailed in the Corporate Governance Report, forming part of this Annual Report. CSR policy was also adopted in compliance with the provisions of section 135 of the Companies Act, 2013 and is uploaded on the Company''s website: http://www.kolsite.com/Upload/FinancialResult/REVISED%20CSR%20POLICY.pdf Further, additional information on the CSR Policy and implementation of CSR activities by your Company during the year under review are provided in Annexure-3.
The Company in respect of Financial Year 2014-15 and 2015-16 had spent Rs. 30 Lacs and Rs. 40 Lacs respectively in compliance of CSR Policy, to promote education. Such contributions were higher than CSR obligation as prescribed. In respect of Financial Year 2016-17, the Company could spend only specific amount, as process of identifying activities / projects is ongoing, so as to be in line with CSR objectives.
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed as Annexure-4 to this Report.
25. REMUNERATION POLICY:
Brief outline of Company''s Policy on Director''s appointment and remuneration and other matters provided in Section 178 (3) of the Companies Act, 2013 has been disclosed in Annexure-5 to this report.
26. VIGIL MECHANISM & WHISTLE BLOWER POLICY:
The Company has framed a policy on Vigil Mechanism-Whistle Blower, enabling all the employees and other stakeholders of the Company to report any matter activity on account of which the interest of the Company is adversely affected, as a Protected Disclosure. please refer company''s website at:
http://www.kolsite.com/Upload/FinancialResult/VIGIL%20MECHANISM%20WHISTLE%20BLOWER%20POLICY.pdf
27. PARTICULARS OF EMPLOYEES AND REMUNERATION:
The information required under Section 197(12) of the Act read with Rule 5(2) and (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed as Annexure-6.
28. EXTRACT OF ANNUAL RETURN:
Pursuant to Section 92(3), 134(3)(a) of the Act read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014, the extract of Annual Return in Form No. MGT-9 is annexed as Annexure-7.
29. EMPLOYEE RELATIONS:
Employee relations continued to be cordial. The Company takes pride in the commitment and dedication shown by its employees in all areas of business.
30. ACKNOWLEDGEMENT:
Your Directors would like to express their appreciation for the support received from the Shareholders, Bankers, Government Authorities, Stock Exchanges, Customers, Suppliers and Business Associates at all levels during the year under review.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 16th May, 2017 Chairman & Managing Director
(DIN:00015415)
Mar 31, 2015
Dear Members,
The Directors are pleased to present the THIRTY-SECOND ANNUAL REPORT
together with the AUDITED STATEMENT OF ACCOUNTS for the year ended 31st
March, 2015.
1. FINANCIAL PERFORMANCE: (RS. in lacs)
PARTICULARS 2014-15 2013-14
Revenue from Operations and Other Income 27979.06 22508.04
Gross Profit before Finance Cost & Depreciation 3810.08 2524.69
Less : Finance Cost 344.08 184.30
Depreciation 760.95 592.86
Profit Before Tax 2705.05 1747.53
Add / (Less) : Provision for Taxation (530.00) (360.95)
Excess Provision of earlier year 70.92 -
Provision for Deferred Tax (6.09) 34.71
Net Profit After Tax & Deferred Tax 2239.89 1421.29
Depreciation Transitional Provision Effect (90.20) -
(Net of Deferred Tax)
Balance b/f from previous year 5928.86 5210.43
Amount available for appropriation 8078.55 6631.72
APPROPRIATIONS:
Transferred to General Reserve 225.00 143.00
Proposed Dividend 638.04 478.53
Tax on Proposed Dividend 133.51 81.33
Surplus balance carried to Balance Sheet 7082.00 5928.86
8078.55 6631.72
Your company prepares its financial statements in compliance with the
requirements of the Companies Act, 2013 (Act) and Generally Accepted
Accounting Principles (GAAP) in India. The financial statements have
been prepared on historical cost basis. The estimates and judgement
relating to the financial statements are made on prudent basis, so as
to reflect in a true and fair manner, the form and substance of
transactions and reasonably present the company's state of affairs,
profits and cash flows for the year ended March 31,2015.
2. DIVIDEND:
Your Directors are pleased to recommend a dividend @ 40% i.e. RS. 2.00
per equity share of face value of RS. 5/- each for the year ended 31st
March, 2015 subject to the Members' approval [@ 30% i.e. RS. 1.50 per
share of RS. 5/- each for the previous year].
3. TRANSFER TO RESERVES:
The Company proposes to transfer RS. 225 lacs to the General Reserves
out of the amount available for appropriation.
4. OPERATIONS AND OUTLOOK:
The Company has achieved Operational and Other Income for the year
under review at RS. 27,979.06 lacs as against the previous years'
Operational and Other income of RS. 22,508.04 lacs. The profit before
tax amounts to RS. 2,705.05 lacs against the previous years' profit of
RS. 1,747.53 lacs. Net Profit of the Company after tax, deferred tax
amounts to RS. 2,239.89 lacs as against RS. 1,421.29 lacs of the
previous year.
5. EXPORTS:
Exports during the year is RS. 9,093.86 lacs as against previous
years' export of RS. 8,133.77 lacs and is about 34.09 % of total sales
turnover.
6. DIRECTORS AND KEY MANAGERIAL PERSONNEL:
Shri Haridas S. Sanwal, Independent Director of the Company passed away
on 15th May, 2015. He was associated with the Company since April,
1985. He had contributed his best in the interest of the Company. The
Board places on record, its deep appreciation of invaluable
contribution and guidance provided by him.
Shri Satyanarayan G. Kabra Director of the Company is liable to retire
by rotation in accordance with the provisions of Section 152 of the
Companies Act, 2013 (Act) at the ensuing Annual General Meeting, being
eligible, offers himself for re-appointment.
Shri Varun S. Kabra and Smt. Jyoti V. Kabra were appointed as
additional directors w.e.f. 13th February, 2015 and hold office upto
the date of ensuing Annual General Meeting in terms of Section 161 of
the Companies Act, 2013 and in respect of them, the Company has
received notices in writing from Members along with the deposit of the
requisite amount under Section 160 of the said Act proposing their
candidature for the office of the Directors of the Company.
Further Smt. Jyoti V. Kabra has been appointed in compliance of Section
149 (1) of the said Act and Clause 49 of the Listing Agreement,
providing for appointment of a Woman director on the Board.
Pursuant to the provisions of section 203 of the Act, the recognition
of Shri S. Shenoy - Chief Executive Officer, Shri Jayant Sarpotdar -
Chief Financial Officer and Shri Y. D. Sanghavi - Company Secretary as
Key Managerial personnel of the Company was formalized. They have been
in the employment of the company, before the enactment of said section
which came into effect from April 1,2014.
7. INDEPENDENT DIRECTORS:
Shri Bajrang Lal Bagra was appointed by the Board of Directors with
effect from 7th November, 2014 as an additional director and holds
office upto the date of ensuing Annual General Meeting of the Company
in terms of Section 161 of the Companies Act, 2013 and the Company has
received a notice in writing from a Member along with the deposit of
the requisite amount under Section 160 of the said Act, proposing his
candidature for the office of Director of the Company.
He is independent of the management in terms of Section 149 (6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement.
His appointment as an Independent Director of the Company is proposed
to hold office for a term of 5 (five) years from the date of
forthcoming Annual General Meeting and that he shall not be liable to
retire by rotation.
In a separate meeting of Independent Directors held without the
presence of Executive Directors, performance of non-independent
directors, performance of the board as a whole and of Chairman was
evaluated, taking into account the views of executive directors and
non-executive directors and on the basis of evaluation criteria.
The evaluation framework for assessing the performance of Directors
comprises of the following key areas -
i. Attendance at Board and its Committee Meetings
ii. Quality of contribution to Board deliberations
iii. Strategic perspectives or inputs regarding future growth of
company and its performance
iv. Providing perspectives and feedback going beyond information
provided by the management
v. Commitment to shareholders' and other stakeholders' interests.
The evaluation involves Self-evaluation by the Board Member and
subsequently assessment by the Board of Directors. A member of the
Board will not participate in the discussion of his / her evaluation.
The details of Programme for familiarization of independent directors
are put up on the website of the company at the link
http://www.kolsite.com/manage/media/477341208KABRA-FAMILIARISATION-
POLICY.pdf
All independent directors have given declaration that they meet the
criteria of independence as provided in section 149 (6) of the Act, and
clause 49 of the Listing Agreement. There has been no change in the
circumstances, which has affected their status as independent director.
The non-executive directors of the company had no pecuniary
relationship or transactions with the company.
In the opinion of the Board, they fulfill the conditions of
independence as specified and are independent of the management.
8. DIRECTORS' RESPONSIBILITY STATEMENT:
Based on the framework of internal financial control and compliance
systems established and maintained by the Company, work performed by
internal, statutory, cost and secretarial auditors and the review
performed by Management and the relevant Board Committees, including
the Audit Committee, the Board is of opinion that the Company's
Internal Financial Controls were adequate and effective during the
financial year 2014-15.
Accordingly, pursuant to Section 134(3) and 134(5) of the Companies
Act, 2013, the Board of Directors, to the best of their knowledge
confirm that:
i . in the preparation of annual accounts for the year ended 31st
March, 2015, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
ii. they have selected such appropriate accounting policies and
applied them consistently, and made judgements and estimates that were
reasonable and prudent so as to give the true and fair view of the
state of affairs of the Company as at 31st March, 2015, and of the
profits of the Company for the said financial year;
iii. they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. they have prepared the said accounts on a "going concern basis";
v. they have laid down internal financial controls to be followed by
the Company and that such internal financial controls are adequate and
were operating effectively; and
vi. they have devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems are adequate
and operating effectively.
9. SUBSIDIARY COMPANIES:
The Company has adopted a policy for determining material subsidiaries
in terms on Clause-49 of the Listing Agreement which is uploaded on
http://www.kolsite.com/manage/media/1726085958 24.%201427669759
KET-POLICY-ON-DETERMINING-MATERIAL-SUBSIDIARIES.pdf The company has no
subsidiary company, nor has any company become or ceased to be a
subsidiary of the company. The Company does not have any associate or
joint venture companies within the meaning of Section 2(6) of the
Companies Act, 2013.
10. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The Company has not given any loans or guarantees or provided any
security during the year.
Details of Investments made during the year under review are given in
the notes to financial statements.
11. PUBLIC DEPOSITS:
Your Company has not accepted any deposits from public and as such, no
amount on account of principal or interest on deposit from public was
outstanding as on the date of the balance sheet.
12. RELATED PARTY TRANSACTIONS:
All Related Party Transactions that were entered into during the
financial year were on an arm's length basis, in the ordinary course of
business. All Related Party Transactions are placed before the Audit
Committee for approval, prior omnibus approval of the Audit Committee
is obtained for the transactions which are repetitive in nature. A
statement of all Related Party Transactions is placed before the Audit
Committee for its review on a quarterly basis, specifying nature, value
and terms and conditions of the transactions. Disclosure in AOC-2 is
not required as there were no reportable transactions. The Company has
adopted a policy on materiality of Related Party Transactions and
dealing with the same, as approved by the Board and is uploaded on the
Company's website:http://www.kolsite.com/manage/media/1113468453
KET-POLICY-ON-RELATED-PARTY-TRANSACTIONS.pdf Details of the
transactions with Related Parties are provided in the accompanying
financial statements.
13. RISK MANAGEMENT:
The Company has in place a mechanism to identify, assess, monitor and
mitigate various risks to key business objectives. Major risks
identified by the businesses and functions are systematically addressed
through mitigating actions on continuing basis. These are discussed at
the meetings of the Audit Committee and the Board of Directors of the
Company.
14. INTERNAL CONTROL SYSTEM AND ADEQUACY:
The company's internal audit system are geared towards ensuring
adequate internal controls commensurate with the size and needs of the
business, with the objective of efficient conduct of operations through
adherence to the Company's policies, identifying areas of improvement,
evaluating the reliability of financial statements, ensuring
compliances with applicable laws and regulations and safeguarding of
assets from unauthorized use.
The Audit Committee of the Board of Directors reviews the adequacy and
effectiveness of internal control systems and suggests improvements to
strengthen the same.
The Audit committee of the Board of Directors, Statutory Auditors and
Departmental Heads are appraised of the internal audit findings and
corrective actions taken.
15. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS:
No Significant Material Orders have been passed by the Regulators or
Courts or Tribunals which would impact the going concern status of the
Company and its future operations.
16. STATUTORY DISCLOSURE:
a. There is no change in nature of business of the company.
b. In terms of the first proviso to section 136 of the Act, the Report
and Accounts are being sent to all the shareholders and is available on
the Company's website.
c. During the year under review, the company has not issued any shares
with differential voting rights nor has granted any stock option or
sweat equity.
d. None of directors hold instruments convertible into equity shares
of the company.
e. There have been no material changes and commitments, if any,
affecting the financial position of the company which have occured
between the end of the financial year of the company to which the
financial statements relate and the date of the report.
17. NUMBER OF MEETINGS OF THE BOARD:
The details of the number of Meetings of the Board held during the
financial year 2014-15 form part of the Corporate Governance report.
18. AUDIT COMMITTEE COMPOSITION:
Audit Committee composition is presented in Corporate Governance
Report.
There have not been any instances during the year, when recommendations
of the said committee were not accepted by the Board.
19. CORPORATE GOVERNANCE:
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
20. MEASURES FOR PREVENTION OF SEXUAL HARASSMENT AT WORK PLACE:
The Company pursuant to the Section 4 of the Sexual Harassment of Women
at Work Place (Prevention, Prohibition and Redressal) Act, 2013 and
rules made thereunder, had constituted the Internal Complaints
Committee. During the year no complaint was lodged with the Committee.
21. STATUTORY AUDITORS AND THEIR REPORT:
M/s. Kirtane & Pandit LLP (previously known as M/s. Kirtane & Pandit),
a firm of Chartered Accountants were appointed as a Statutory Auditors
of the Company for a term of 5 (five) consecutive years to hold office
from the conclusion of the 31st Annual General Meeting until the
conclusion of the 36th Annual General Meeting (AGM).
The company has received their eligibility certificate subject to
Section 139 and 141 of the Act and rules made there under. Their
appointment has to be ratified in terms of Section 139 (1) of the
Companies Act, 2013.
Members are requested to consider their re-appointment at the
forthcoming AGM and authorize the Board of Directors to fix their
remuneration.
There is no audit qualification in the financial statements by the
Statutory Auditors for the year under review.
22. COST AUDITORS:
As per Section 148 read with Companies (Audit and Auditors) Rules, 2014
and other applicable provisions, if any, of the Companies Act, 2013,
the Board of Directors of your Company has appointed M/s. Dhara Shah &
Associates, a firm of qualified Cost Accountants as the Cost Auditor of
your Company to conduct audit of Cost Accounting records for financial
year 2015-16 on the recommendation made by the Audit Committee.
The remuneration proposed to be paid to the Cost Auditors, subject to
the ratification by the Members at the ensuing Annual General Meeting,
would be RS. 1,20,000/- (Rupees One Lac Twenty Thousand Only)
excluding Service Tax, Conveyance and out of pocket expenses, if any.
Members are requested to consider the ratification of their
remuneration.
Audit of the cost records of the company are applicable in respect of
financial year 2015-16 in terms of amended Companies (Cost Records and
Audit) Rules, 2014.
23. SECRETARIAL AUDITORS AND THEIR REPORT:
Pursuant to the provisions of Section 204 of the Act and The Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Board of Directors of the Company had appointed M/s. Bhandari &
Associates, a firm of Company Secretaries in practice (CP No.366) to
undertake the Secretarial Audit for the financial year ended 31st
March, 2015. Their Report is annexed as Annexure 'A' to this report.
The Company is in the process of filing E-Form MGT - 10 with the
Registrar of Companies as required under the provisions of Section 93
of the Companies Act, 2013 and pursuant to rule 13 of The Companies
(Management and Administration) Rules, 2014 in respect of the changes
in shareholding position of promoters and top ten shareholders as
reported in the Secretarial Audit Report.
24. CORPORATE SOCIAL RESPONSIBILITY (CSR):
The Board has constituted a Corporate Social Responsibility Committee
headed by Shri S. V. Kabra as Chairman. CSR policy was also adopted in
compliance with the provisions of section 135 of the Companies Act,
2013 (Act). As a Part of its CSR initiatives, the Company has
undertaken activity of "Promoting Education" in accordance with
Schedule - VII of the said Act and amount of RS. 30 lacs was spent
during the financial year 2014-15 against obligation of RS. 27 lacs.
Report on CSR activities is annexed as Annexure 'B' to this report.
25. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The information on conservation of energy, technology absorption and
foreign exchange earnings and outgo stipulated under Section 134(3) (m)
of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014 is
annexed as Annexure 'C' to this report.
26. REMUNERATION POLICY:
Brief outline of Company's Policy on Director's appointment and
remuneration and other matters provided in Section 178 (3) of the
Companies Act, 2013 has been disclosed in Annexure 'D' to this report.
27. PARTICULARS OF EMPLOYEES AND REMUNERATION:
The information required under Section 197 (12) of the Act read with
Rule 5 of The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, is annexed as Annexure 'E' to this report.
The information required under Rule 5(2) and (3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is
provided in the Annexure forms part of this Report as Annexure 'F'.
28. EXTRACT OF ANNUAL RETURN:
Pursuant to Section 92 (3) of the Act and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014, the extract of Annual
Return in Form No. MGT-9 is annexed as Annexure 'G' and forms an
integral part of this report.
29. EMPLOYEE RELATIONS:
Employee relations continued to be cordial. The Company takes pride in
the commitment and dedication shown by its employees in all areas of
business.
30. ACKNOWLEDGEMENT:
Your Directors would like to express their appreciation for the support
received from the Shareholders, Bankers, Government Authorities, Stock
Exchanges, Customers, Suppliers and Business Associates at all levels
during the year under review.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 26th May, 2015 Chairman & Managing Director
Mar 31, 2014
The Directors are pleased to present the THIRTY-FIRST ANNUAL REPORT
and the AUDITED STATEMENT OF
ACCOUNTS for the year ended 31st March, 2014.
1 .FINANCIAL RESULTS: (Rs. in Lacs)
PARTICULARS 2013-2014 2012-2013
Revenue from Operations
and Other Income 22528.71 18499.31
Gross Profit before Finance Cost &
Depreciation 2524.69 2145.63
Less: Finance Costs 184.30 277.81
Depreciation 592.86 583.94
Profit Before Tax 1747.53 1283.88
Add / (Less): Provision for Taxation (360.95) (240.70)
MAT Credit Entitlement -- 57.38
Provision for Deferred Tax Liabilities 34.71 (14.38)
Net Profit After Tax & Deferred Tax 1421.29 1086.18
Balance b/f from previous year 5210.43 4606.49
Amount available for appropriation 6631.72 5692.67
APPROPRIATIONS:
Transferred to General Reserves 143.00 109.00
Proposed Dividend 478.53 319.02
Tax on Proposed Dividend 81.33 54.22
Surplus balance carried to Balance Sheet 5928.86 5210.43
6631.72 5692.67
2. DIVIDEND :
Your Directors are pleased to recommend a dividend of Rs. 1.50 per share
of Rs. 5/- each for the year ended 31st March, 2014 subject to the
Members'' approval [Rs. 1/- per share of Rs. 5/- each for the previous
year].
3. OPERATIONS AND OUTLOOK :
The Company has achieved Operational and Other Income for the year
under review at 7 22,528.71 lacs as against the previous years''
Operational and Other income of Rs. 18,499.31 lacs. The profit before tax
amounts to Rs. 1,747.53 lacs against the previous years'' profit of Rs.
1,283.88 lacs. Net Profit of the Company after tax, deferred tax and
MAT Credit amounts to Rs. 1,421.29 lacs as against Rs. 1,086.18 lacs of the
previous year.
4. EXPORTS:
Exports during the year is Rs. 8,133.77 lacs as against previous years''
export of Rs. 6,414.06 lacs and is about 36.45% of total sales turnover.
5. DIRECTORS:
Shri Shreevallabh G. Kabra Director of the Company is liable to retire
by rotation at the ensuing Annual General Meeting, being eligible,
offers himself for re-appointment.
The Board of Directors of your Company at the meeting held on 21st May,
2014, in accordance with the provisions of Section 196, 197, 203 of the
Companies Act, 2013 (Act) read with Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and subject to
schedule V to the Act, and subject to approval of the Shareholders at
the ensuing Annual General Meeting, considered and approved the re-
appointment of Shri Shreevallabh G. Kabra as the Chairman & Managing
Director of your Company for a further term of 5 (Five) years
commencing from 1st April, 2014 to 31st March, 2019. Shri Satyanarayan
G. Kabra and Shri Anand S. Kabra, being Executive Directors of the
Company were not liable to retire by rotation, shall now retire by
rotation pursuant to the provisions of Section 152 of Companies Act,
2013
6. INDEPENDENT DIRECTORS:
In order to comply with the provisions of Section 149 read with
Schedule IV of the Companies Act, 2013 and Clause 49 of the Listing
Agreement entered into with Stock Exchanges, Shri Haridas S. Sanwal,
Shri Mahaveer Prasad Taparia, Shri Nihalchand C. Chauhan and Shri
Yagnesh B. Desai are proposed to be appointed as Independent Directors
for a term of 5 (Five) consecutive years from the date of ensuing
Annual General Meeting.
They are independent of the Management in terms of Section 149 (6) of
the Companies Act, 2013 and amended Clause 49 of the Listing Agreement
and such appointment would comply with the requirement of appointing at
least one-third of the total number of directors as Independent
Directors on Board as prescribed under Section 149 (4) of the Act.
7. DIRECTORS'' RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
i. in the preparation of annual accounts for the year ended 31st March,
2014, the applicable accounting standards have been followed along with
proper explanation relating to material departures, if any;
ii. they have selected such appropriate accounting policies and applied
them consistently, and made judgements and estimates that were
reasonable and prudent so as to give the true and fair view of the
state of affairs of the Company as at 31st March, 2014, and of the
profits of the Company for the said financial year;
iii. they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities and
iv. they have prepared the said accounts on a "going concern basis".
8. STATUTORY AUDITORS :
Messers. Kirtane & Pandit, a firm of Chartered Accountants and
Statutory Auditors of the Company will retire from the office of the
Auditors at the conclusion of the ensuing Annual General Meeting and
being eligible offer themselves for re-appointment. They have furnished
a certificate of their eligibility for re-appointment u/s. 141 of the
Companies Act, 2013. They have served as Statutory Auditors of the
Company for 4 (Four) years from financial year 2010-11. They are
proposed to be appointed for a one term of five consecutive years in
terms of Section 139 of the Companies Act, 2013 to hold office from the
conclusion of 31st Annual General Meeting untill the conclusion of 36th
Annual General Meeting, subject to ratification of such appointment by
members at every Annual General Meeting.
9. COST AUDITOR :
As per Section 148 read with Companies (Audit and Auditors) Rules, 2014
and other applicable provisions, if any, of the Companies Act, 2013,
the Board of Directors of your Company has appointed M/s. Dhara Shah &
Associates, a firm of qualified Cost Accountants as the Cost Auditor of
your Company to conduct audit of Cost Accounting records for financial
year 2014-15 on the recommendation made by the Audit Committee.
The remuneration proposed to be paid to the Cost Auditors, subject to
the ratification by the Members at the ensuing Annual General Meeting,
would be Rs. 1,20,000/- (Rupees One Lac Twenty Thousand Only) excluding
Service Tax, Conveyance and out of pocket expenses, if any
10. LISTING FEES :
The Company confirms that the Annual Listing Fees due to BSE Ltd., and
National Stock Exchange of India Ltd., for the financial year 2014-15
have been paid.
11. CORPORATE GOVERNANCE :
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
12. EMPLOYEES RELATIONS :
Employees relations continued to be cordial throughout the year. The
Directors appreciate the efforts put in by the employees at all the
levels. As required by the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, none of the employee draws salary in excess of
Rs. 5,00,000/- per month, and hence no disclosure is required to be made.
13. MEASURES FOR PREVENTION OF SEXUAL HARASSMENT AT WORK PLACE :
The Company pursuant to the Section 4 of the Sexual Harassment of Women
at Work Place (Prevention, Prohibition and Redressal) Act, 2013 and
rules made thereunder had constituted the Internal Complaints Committee
to lodge complaints (if any). During the year no complaint was lodged.
14. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
A Statement giving details of conservation of energy, technology
absorption and foreign exchange earnings and outgo in accordance with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 forms part of this report as ANNEXURE A.
ACKNOWLEDGEMENT :
Your Directors would like to express their appreciation for the support
received from the Shareholders, Bankers, Government Authorities, Stock
Exchanges, Customers, Suppliers and Business Associates at all levels
during the year under review. Your Directors also wish to place on
record their appreciation for the committed services of the executives,
staff and workers of the Company.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 21st May, 2014 Chairman & Managing Director
Mar 31, 2013
To , The Members of, Kabra Extrusiontechnik Limited, Mumbai.
The Directors are pleased to present the THIRTIETH ANNUAL REPORT and
the AUDITED STATEMENT OF ACCOUNTS of the company for the year ended
31st March, 2013.
1. FINANCIAL RESULTS:
(Rs.in Lacs)
PARTICULARS 2012-2013 2011-2012
Revenue from Operations
and Other Income 18499.31 19499.70
Gross Proft before Interest
& Depreciation 2145.64 1824.72
Less : Finance Costs 277.81 100.49
Depreciation 583.94 465.31
Proft Before Tax 1283.89 1258.92
Less : Provision for Taxation (240.70) (291.10)
Add : MAT Credit Entitlement 57.38
Less : Provision for Deferred
Tax Liabilities (14.38) (43.58)
Add :Excess provision of
earlier years 76.47
Net Proft After Tax & Deferred Tax 1086.18 1000.71
Balance b/f from previous year 4606.49 4076.65
Amount available for appropriation 5692.67 5077.36
APPROPRIATIONS:
Transferred to General Reserves 109.00 100.10
Proposed Dividend 319.02 319.02
Tax on Proposed Dividend 54.22 51.75
Surplus balance carried to
Balance Sheet 5210.43 4606.49
5692.67 5077.36
2. DIVIDEND :
Your Directors are pleased to recommend a dividend of Rs. 1/- per share
of Rs. 5/- each for the year ended 31st March, 2013 subject to the
Members'' approval [Rs. 1/- per share of Rs. 5/- each for the previous
year].
3. OPERATION AND OUTLOOK :
The Company has achieved Operational and Other Income for the year
under review at Rs. 18,499.31 lacs as against the previous years''
Operational and Other income of Rs. 19,499.70 lacs. The proft before tax
amounts to Rs. 1,283.89 lacs against the previous years'' proft of Rs.
1,258.92 lacs. Net Proft of the Company after tax, deferred tax and MAT
Credit Entitlement amounts to Rs. 1,086.18 lacs as against Rs. 1,000.71
lacs of the previous year.
4. EXPORTS:
Exports during the year is Rs. 6,431.71 lacs as against previous years''
export of Rs. 6,184.54 lacs and is about 35.74% of total sales turnover.
5. DIRECTORS:
In accordance with the Articles of Association of the Company and in
view of provisions of Section 255 of the Companies Act, 1956, Shri
Yagnesh B. Desai and Shri Nihalchand C. Chauhan, Directors of the
Company are retiring by rotation at the ensuing Annual General Meeting
and being eligible; offer themselves for re-appointment.
Shri Satyanarayan G. Kabra, Vice-Chairman & Managing Director and Shri
Anand S. Kabra, Technical Director of the Company have been
re-appointed by the Board of Directors subject to the approval of the
members.
6. DIRECTORS'' RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confrm that :
i. in the preparation of annual accounts for the year ended 31st March,
2013, the applicable accounting standards have been followed along with
proper explanation relating to material departures, if any;
ii. they have selected such appropriate accounting policies and applied
them consistently, and made judgements and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at 31st March, 2013, and of the profts of
the Company for the said fnancial year;
iii. they have taken proper and suffcient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv. they have prepared the said accounts on a "going concern basis".
7. CONVERSION OF DEBT INVESTMENT IN PREFERRED SECURITIES OF GEC
During FY 2010-11, the Company acquired 15% equity stake in Gloucester
Engineering Company Inc. USA (GEC); and thereafter in debts by
advancing term loan and revolving limits.
The Board of Directors in its meeting held on 5th October, 2012
approved proposal for conversion of debt into preferred securities i.e.
Compulsorily Convertible Preferred Securities (CCPS) offered by GEC.
The Company has received interest on outstanding working capital limit
till 30th March, 2013 and interest on outstanding term loan accrued on
it till aforesaid date;
GEC on 30th March, 2013 allotted CCPS at fair market value of USD 11.61
per security against the aggregate amount of working capital and term
loan with accrued interest thereon outstanding as on above date.
Upon conversion of debt into CCPS, the Company became holder of
216644.53 number of CCPS at year end as long term investment in
addition to 150000 number of its equity shares.
The said preferred stock will carry right to receive dividend @8% p.a.
and at the end of 10 year from the date of allotment i.e. 30th March,
2013, it will be converted into 2 (two) equity (Common Stock) at offer
price of USD 5.81 against 1 (one) CCPS held.
8. RECOGNITION OF IN-HOUSE R&D UNIT :
Your Company has been accorded recognition for its In-house R&D Unit at
Plot No. 14 & 15, at Kachigam, Daman by Government of India, Ministry
of Science and Technology, Department of Scientifc and Industrial
Research, New Delhi.
This will entitle the In-house R&D Unit of the Company to avail Customs
& Excise exemption on purchase of equipments, instruments, spares
thereof, consumables etc. used for Research & Development subject to
applicable laws and Government Policies in this behalf.
9. STATUTORY AUDITORS :
Messers. Kirtane & Pandit, Chartered Accountants, Auditors of the
Company will retire from the offce of the Auditors at the conclusion of
the ensuing Annual General Meeting and being eligible offer themselves
for re-appointment. They have furnished a certifcate of their
eligibility for re-appointment u/s. 224 (1-B) of the Companies Act,
1956 and they are not disqualifed under amended section 226(3)(e) of
the said Act.
10. COST AUDITOR :
Shri Rahul Anant Chincholkar a qualifed Cost Accountant holding valid
certifcate of practice has been appointed as a Cost Auditor of the
Company pursuant to section 233(B)(1)&(2) of the Companies Act, 1956
subject to the approval of the Central Government.
His appointment is made to conduct audit of cost accounting records of
fnancial year from 1st April, 2013 to 31st March, 2014 maintained by
the Company.
He has furnished a certifcate of eligibility for such appointment and
is free from any disqualifcation and independent and is at arm''s length
relationship with the Company. The cost Audit Report for the fnancial
year ended 31st March, 2013 will be fled with Ministry of Corporate
Affairs as prescribed statutorily.
11. LISTING FEES :
The Company confrms that the Annual Listing Fees due to BSE Ltd., and
National Stock Exchange of India Ltd., for the fnancial year 2013-14
have been paid.
12. CORPORATE GOVERNANCE :
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
13. EMPLOYEES RELATIONS :
Employees relations continued to be cordial throughout the year. The
Directors appreciate the efforts put in by the employees at all the
levels. As required by the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, none of the employee draws salary in excess of
Rs. 5,00,000/- per month, hence no disclosure is required to be made.
14. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
A Statement giving details of conservation of energy, technology
absorption and foreign exchange earnings and outgo in accordance with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 forms part of this report as ANNEXURE A.
ACKNOWLEDGEMENT :
Your Directors would like to express their appreciation for the support
received from the Shareholders, Bankers, Government Authorities, Stock
Exchanges, Customers, Suppliers and Business Associates at all levels
during the year under review. Your Directors also wish to place on
record their appreciation for the committed services of the executives,
staff and workers of the Company.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 29th May, 2013 Chairman & Managing Director
Mar 31, 2012
To,The Members of, Kabra Extrusiontechnik Limited, Mumbai.
The Directors are pleased to present the TWENTY-NINETH ANNUAL REPORT
and the AUDITED STATEMENT OF ACCOUNTS for the year ended 31st March,
2012.
1. Financial results:
(Rs. in Lacs)
PARTICULARS 2011-2012 2010-2011
(Current Year) (Previous Year)
Revenue from Operations
and Other Income 19,499.70 22,610.20
Gross Profit before
Interest & Depreciation 1,824.72 3,993.99
Less: Interest (Finance Cost) 100.49 88.12
Depreciation 465.31 388.23
Prof it Before Tax 1,258.92 3,517.64
Less: Provision for Taxation 291.10 851.26
Provision for Deferred Tax
Liabilities 43.58 84.81
Add : Excess provision of
earlier years 76.47 -
Net Profit After Tax & Deferred Tax 1,000.71 2,581.57
Balance b/f from previous year 4,076.65 3,543.94
Amount available for appropriation 5,077.36 6,125.51
APPROPRIATIONS:
Transferred to General Reserves 100.10 1,400.00
Proposed Dividend 319.02 558.29
Tax on Proposed Dividend 51.75 90.57
Surplus balance carried to
Balance Sheet 4,606.49 4,076.65
5,077.36 6,125.51
Your Directors are pleased to recommend a dividend of Re. 1/- per share
of Rs. 5/- each for the year ended 31st March, 2012 subject to the
Members' approval (Rs. 1.75 per share of Rs. 5/- each for the previous
year on the Post bonus enhanced capital).
Your Company has achieved Operational and Other Income for the year
under review at Rs. 19,499.70 lacs as against the previous years'
Operational and Other income of Rs. 22,610.20 lacs. The profit before
tax amounts to Rs. 1,258.92 lacs against the previous years' profit of
Rs. 3,517.64 lacs. Net Profit of the Company after tax, deferred tax
and excess provision of earlier year written back amounts to Rs.
1,000.71 lacs as against Rs. 2,581.57 lacs of the previous year.
Performance for the year under review was adversely affected by
slowdown witnessed in end users industries.
During the year, the Company has manufactured a Five (5) Layer Blown
Film Plant, first time in India with GEC technology at its newly
developed manufacturing set-up at Dunetha and the said plant has been
successfully supplied to a company based in Kerala to produce barrier
film for edible oil packaging.
Exports during the year is Rs. 6,184.54 lacs, as against previous
years' export of Rs. 6,798.79 lacs and is about 32.80% of total sales
turnover.
In accordance with the Articles of Association of the Company and in
view of provisions of Section 255 of the Companies Act, 1956, Shri
Anand Shreevallabh Kabra and Shri Mahaveer Prasad Taparia, Directors of
the Company are retiring by rotation at the ensuing Annual General
Meeting and being eligible, seek re-appointment.
6. DIRECTORS' RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
(i) in the preparation of annual accounts for the year ended 31st
March, 2012, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
(ii) they have selected such appropriate accounting policies and
applied them consistently and made judgements and estimates that were
reasonable and prudent so as to give the true and fair view of the
state of affairs of the Company as at 31st March, 2012 and of the
profits of the Company for the said financial year;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv) they have prepared the said accounts on a "going concern basis".
Messers, Kirtane & Pandit, Chartered Accountants, Statutory Auditors of
the Company will retire from the office of the Auditors at the
conclusion of the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment. They have furnished a certificate
of their eligibility for re-appointment u/s. 224 (1 -B) of the
Companies Act, 1956 and they are not disqualified under amended section
226(3)(e) of the said Act.
Shri A. P. Raman, a qualified Cost Accountant has been appointed as a
Cost Auditor of the Company pursuant to section 233(B)(1)&(2) of the
Companies Act, 1956 and subject to the approval of the Central
Government.
In terms of order dt. 24m January 2012 issued by Ministry of Corporate
Affairs, Cost Audit Branch, his appointment is made to conduct audit of
cost accounting records of financial year from 1st April, 2012 to 31st
March, 2013 maintained by the Company in respect of its product i.e.
Plastic Processing Machinery covered by Chapter 84 of Central Excise
Tariff Act.
He has furnished certificate of his eligibility for such appointment
and he is free from any disqualification and is independent and is at
arm's length relationship with the company.
In respect of Financial Year 2011-12, aforesaid qualified Cost
Accountant shall certify Compliance Report as prescribed under Rule 5
of (The Cost Accounting Records) Rules, 2011.
The Company confirms that the Annual Listing Fees due to BSE Ltd. and
National Stock Exchange of India Ltd. for the financial year 2012-13
have been paid.
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
Employees relations continued to be cordial throughout the year. The
Directors appreciate the efforts put in by the employees at all the
levels. As required by the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, none of the employee draws salary in excess of
Rs. 5,00,000/- per month, hence no disclosure required to be made.
A Statement giving details of conservation of energy, technology
absorption and foreign exchange earnings and outgo in accordance with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 forms part of this report as ANNEXURE A.
Your Directors would like to express their appreciation for the support
received from the Shareholders, Bankers, Government Authorities, Stock
Exchanges, Customers, Suppliers and Business Associates at all levels
during the year under review. Your Directors also wish to place on
record their appreciation for the committed services of the executives,
staff and workers of the Company.
For and on behalf of the Board
S. V. Kabra
Chairman & Managing Director
Place : Mumbai
Date :29th May, 2012
Mar 31, 2011
The Members of,
Kabra Extrusiontechnik Limited,
Mumbai.
The Directors are pleased to present the TWENTY-EIGHTH ANNUAL REPORT
and the AUDITED STATEMENT OF ACCOUNTS for the year ended 31 st March,
2011.
1. FINANCIAL RESULTS: (Rs. in Lacs)
PARTICULARS 2010-2011 2009-2010
(Current Year) (Previous Year)
Sales Turnover and Other Income 22610.20 19730.48
Gross Profit before Interest & Depreciation 3951.32 3493.15
Less: Interest 45.46 71.41
Depreciation 388.22 338.95
Profit Before Tax (PBT) 3517.64 3082.79
Less: Provision for Taxation 851.26 900.00
Provision for Deferred Tax Liabilities 84.81 36.42
Profit After Tax (PAT) 2581.57 2146.37
Balance b/f from previous year 3543.94 3450.74
Amount available for appropriation 6125.51 5597.11
APPROPRIATIONS:
Transferred to General Reserves 1400.00 1400.00
Provision for Proposed Dividend 558.29 558.29
Provision for Tax on Proposed Dividend 90.57 94.88
Surplus balance carried to Balance Sheet 4076.65 3543.94
6125.51 5597.11
2. DIVIDEND:
Your Directors are pleased to recommend a dividend of Rs. 1.75 per
share of Rs. 5/- each for the year ended 31st March, 2011 on the
enhanced capital (i.e. Post Bonus) [Rs. 3.50 per share of Rs. 5/- each
for the previous year] subject to the members' approval.
3. OPERATION AND OUTLOOK :
The Company has achieved the Operational and Other Income for the year
under review at Rs. 22610.20 lacs as against the previous years'
Operational and Other income of Rs. 19730.48 lacs an increase of
14.60%. The profit before tax amounts to Rs. 3517.64 lacs against the
previous years' profit of Rs. 3082.79 lacs an increase of 14.10%. Net
Profit of the Company after tax, deferred tax amounts to Rs. 2581.57
lacs as against Rs. 2146.37 lacs of the previous year an increase of
20.28%.
New unit at Dunetha (Nani Daman) is operational and will facilitate
manufacturing of high-output blown film plants and existing product
lines.
4. EXPORTS :
Exports during the year is Rs. 67.98 crores, as against previous years'
export of Rs. 78.44 crores and is about 31% of total sales turnover.
5. DIRECTORS:
In accordance with the Articles of Association of the Company and in
view of provisions of Section 255 of the Companies Act, 1956, Shri
Nihalchand Chunilal Chauhan and Shri Haridas Sagatmal Sanwal, Directors
of the Company are retiring by rotation at the ensuing Annual General
Meeting and being eligible, seek their re-appointment.
It is proposed to vary terms of remuneration of Shri S. N. Kabra, Vice
Chairman & Managing Director and Shri Anant S. Kabra, Technical
Director for remaining tenure of their appointment w.e.f. July, 2011 to
June, 2013 and August, 2011 to July, 2013 respectively.
6. DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that:
(i) in the preparation of annual accounts for the year ended 31st
March, 2011, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
(ii) they have selected such appropriate accounting policies and
applied them consistently, and made judgements and estimates that were
reasonable and prudent so as to give the true and fair view of the
state of affairs of the Company as at 31st March, 2011, and of the
profits of the Company for the said financial year;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv) they have prepared the said accounts on a "going concern basis".
7. CHANGE IN AUTHORISED & PAID-UP CAPITAL :
(i) Equity Shares of Rs. 10/- each was sub-divided into 2 (two) shares
of Rs. 5/- each w.e.f. 19th May, 2010. New ISIN : INE900B01029 was
allotted by the Depositories for fully paid equity shares of Rs. 5/-
each;
(ii) Authorised Capital of the Company was increased from Rs.
10,00,00,000/- (Rupees Ten Crores) divided into 20000000 (Two Crores)
Equity Shares of Rs. 5/- each to Rs. 20,00,00,000/- (Rupees Twenty
Crores) divided into 40000000 (Four Crores) Equity Shares of Rs. 5/-
each to facilitate issue of Bonus Shares;
(iii) The Company issued and allotted Bonus Shares on 9th September,
2010 in the ratio of 1:1 i.e. 1 (one) fully paid-up equity share of Rs.
5/- each for every fully paid-up share held by the Members as on record
date fixed for the said purpose. Paid-up capital of the Company stands
increased to Rs. 15,95,11,600/- (Rupees Fifteen Crores Ninety Five
Lakhs Eleven Thousand Six Hundred Only) divided into 3,19,02,320 Equity
Shares of Rs. 5/-each upon split and bonus as above.
8. INVESTMENT IN FOREIGN COMPANY :
The Company has acquired 15% stake in equity and debt of M/s.
Gloucester Engineering Company Inc. (GEC), a US based company and
accordingly invested about Rs. 9.27 cr. towards equity and Rs. 7.22 cr.
towards debt.
With this minority investment, the Company would be able to reach out
to the customers in the South & North America as well European Markets
and shall benefit by its updated manufacturing technology for
high-output high-end blown film lines.
9. AUDITORS :
Messers. Kirtane & Pandit, Chartered Accountants, Auditors of the
Company will retire from the office of the Auditors at the conclusion
of the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment. They have furnished a certificate of
their eligibility for re-appointment u/s.224 (1-B) of the Companies
Act, 1956 and they are not disqualified under amended section 226(3)(e)
of the said Act.
10. LISTING FEES:
The Company confirms that the Annual Listing Fees due to Bombay Stock
Exchange Ltd., Mumbai and National Stock Exchange of India Ltd., Mumbai
for the financial year 2011-12 have been paid.
11. CORPORATE GOVERNANCE:
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
12. EMPLOYEES RELATIONS :
Employees relations continued to be cordial throughout the year. The
Directors appreciate the efforts put in by the employees at all the
levels. As required by the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended, none of the employee draws salary in excess of
Rs. 5,00,000/- per month, hence no disclosure required to be made.
13. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
A Statement giving details of conservation of energy, technology
absorption and foreign exchange earnings and outgo in accordance with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 forms part of this report as ANNEXURE A.
14. ACKNOWLEDGEMENT:
Your Directors would like to express their appreciation for the
assistance and co-operation received from the Shareholders, Bankers,
Government Authorities, Stock Exchanges, Customers, Suppliers and
Business Associates at all levels during the year under review. Your
Directors also wish to place on record their appreciation for the
committed services of the executives, staff and workers of the Company.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 30th May, 2011 Chairman & Managing Director
Mar 31, 2010
The Directors are pleased to present the TWENTY-SEVENTH ANNUAL REPORT
and the AUDITED STATEMENT OF ACCOUNTS for the year ended 31st March,
2010.
1. FINANCIAL RESULTS: (Rs. in Lacs)
2009-2010 2008-2009
PARTICULARS (Current Year) (Previous Year)
Sales Turnover and Other
Income 19730.48 15763.61
Gross Profit before Interest &
Depreciation 3493.15 2052.75
Less: Interest 71.41 79.35
Depreciation 338.95 365.80
Profit Before Tax 3082.79 1607.60
Less: Provision for Taxation 900.00 370.00
Provision for Deferred Tax
Liabilities 36.42 67.72
Net Profit After Tax &
Deferred Tax 2146.37 1169.88
Balance b/f from previous year 3450.74 2960.72
Amount available for appropriation 5597.11 4130.60
APPROPRIATIONS
Transferred to General Reserves 1400.00 120.00
Provision for Proposed Dividend 558.29 478.53
Provision for Tax on Proposed
Dividend 94.88 81.33
Surplus balance carried to
Balance Sheet 3543.94 3450.74
5597.11 4130.60
2. DIVIDEND:
Your Directors are pleased to recommend a dividend of Rs. 3.50 per
share of Rs.5/- each for the year ended 31st March, 2010 (Rs. 6.00 per
share of Rs. 10/- each for the previous year) subject to the members
approval.
3. OPERATION AND OUTLOOK :
The Company has achieved the Operational and Other Income for the year
under review at Rs. 19730.48 lacs as against the previous years
Operational and Other income of Rs.15763.61 lacs an increase of 25.16%.
The profit before tax amounts to Rs. 3082.79 lacs against the previous
years profit of Rs. 1607.60 lacs an increase of 91.76%. Net Profit of
the Company after tax, deferred tax and tax provision of earlier year
amounts to Rs. 2146.37 lacs as against Rs. 1169.88 lacs of the previous
year an increase of 83.47%.
4. EXPORTS:
Exports during the year is Rs. 78.44 crores, as against previous years
export of Rs. 57.53 crores an increase of 36.35% and is 40.27% of total
sales turnover.
5. DIRECTORS:
In accordance with the Articles of Association of the Company and in
view of provisions of Section 255 of the Companies Act, 1956, Shri
Mahaveer Prasad Taparia and Shri Yagnesh B. Desai, Directors of the
Company are retiring by rotation at the ensuing Annual General Meeting
and being eligible, seek their re-appointment.
6. DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies Act, 1956, your Directors
hereby confirm that :
(i) in the preparation of annual accounts for the year ended 31st
March, 2010, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
(ii) they have selected such appropriate accounting policies and
applied them consistently, and made judgements and estimates that were
reasonable and prudent so as to give the true and fair view of the
state of affairs of the Company as at 31st March, 2010, and of the
profits of the Company for the said financial year;
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv) they have prepared the said accounts on a "going concern basis".
7. STOCK-SPLIT:
Members of the Company at an Extra-Ordinary General Meeting held on 5th
May, 2010 have approved the Stock Split i.e. sub-division of each fully
paid equity share of face value of Rs. 10/- into two equity shares of
face value of Rs. 5/- each and accordingly the Authorised Share Capital
of Rs. 10,00,00,000/- (Rupees Ten Crores) divided into 10000000 (One
Crore) Equity Shares of Rs. 10/- each have been divided into 20000000
(Two Crores) Equity Shares of Rs. 5/- each and existing 7975580 fully
paid equity shares of Rs. 10/- each comprising the Issued, Subscribed
and Paid-up Equity Share Capital of the Company have been divided into
15951160 fully paid equity shares of Rs. 5/- each.
National Securities Depository Ltd. (NSDL) and Central Depository
Services (India) Ltd. (CDSL), the Depositories have assigned New ISIN :
INE900B01029 for fully paid equity shares of Rs. 5/- each.
Record Date for the purpose was fixed on 18th May, 2010. New Shares
were credited into the account of beneficiaries in case of shares held
in demat form on 19th May, 2010. New Share Certificates were posted to
those shareholders holding shares in physical mode. Existing
certificates in relation to fully paid equity shares of the face value
of Rs. 10/- each accordingly stands cancelled and of no effect from the
said record date.
Consequent to stock-split, Clause V of Memorandum of Association and
Article 3 of the Articles of Association of the Company also have been
altered suitably to reflect the sub-division.
8. AUDITORS:
The Auditors M/s. A. G. Ogale & Co., Chartered Accountants, retire at
the ensuing Annual General Meeting (AGM). However, they have not
offered themselves for re-appointment at the said AGM.
In view of Special Notice received from a Member under Section 225(1)
of the Companies Act, 1956 (the Act) and as recommended by the Audit
Committee, it is proposed to appoint Messers. Kirtane & Pandit,
Chartered Accountants as the Statutory Auditors in place of retiring
Auditors.
Messers. Kirtane & Pandit, a renowned firm of Chartered Accountants has
16 Partners and conduct audit of many reputed companies, banks and have
specialized knowledge in audit, taxation and other corporate matters.
They have furnished a certificate of their eligibility for appointment
u/s.224 (1-B) of the Act. They are not disqualified in any manner in
terms of Section 226(3) of the Act. The Shareholders are requested to
consider their appointment in place of retiring auditors. The Board of
Directors place on its record, the contribution made and support
extended from time to time by the retiring Auditors.
9. LISTING FEES :
The Company confirms that the Annual Listing Fees due to Bombay Stock
Exchange Ltd., Mumbai and National Stock Exchange of India Ltd., Mumbai
for the financial year 2010-11 have been paid.
10. CORPORATE GOVERNANCE :
A separate section on Corporate Governance is included in this Annual
Report as required under Listing Agreement.
11. EMPLOYEES RELATIONS :
Employees relations continued to be cordial throughout the year. The
Directors appreciate the efforts put in by the employees at all the
levels. As required by the provisions of Section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975, Shri S. V. Kabra, Chairman & Managing Director is the sole
employee covered in the statement given hereunder as ANNEXURE A.
12. CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION :
A Statement giving details of conservation of energy, technology
absorption and foreign exchange earnings and outgo in accordance with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 forms part of this report as ANNEXURE B.
13. ACKNOWLEDGEMENT :
Your Directors would like to express their appreciation for the
assistance and co-operation received from the Shareholders, Bankers,
Government Authorities, Stock Exchanges, Customers, Suppliers and
Business Associates at all levels during the year under review. Your
Directors also wish to place on record their appreciation for the
committed services of the executives, staff and workers of the Company.
For and on behalf of the Board
Place : Mumbai S. V. Kabra
Date : 26th May, 2010 Chairman & Managing Director