Mar 31, 2023
Your Directors have pleasure in presenting their 31st Annual Report, together with the Audited Annual Standalone and Consolidated Financial Statements of the Company for the year ended March 31, 2023.
FINANCIAL SUMMARY / STATE OF THE COMPANY''S AFFAIRS
The Company''s financial performances for the year ended March 31,2023 along with previous year''s figures are summarized below:
('' in Million) |
||||
Particulars |
Consolidated |
Standalone |
||
Year ended March 31, 2023 |
Year ended March 31, 2022 |
Year ended March 31, 2023 |
Year ended March 31, 2022 |
|
Revenue from Operations and Other Income |
69,399.53 |
57,415.87 |
69,399.54 |
57,418.76 |
Profit before Finance Costs, Depreciation and Amortisation Expenses and Tax Expenses |
7,337.93 |
6,033.41 |
7,338.33 |
6,035.79 |
Less: Finance Cost |
347.07 |
403.94 |
347.06 |
403.93 |
Less: Depreciation and Amortisation Expenses |
570.79 |
554.54 |
570.79 |
554.54 |
Profit before Exceptional Items and Tax |
6,420.07 |
5,074.93 |
6,420.48 |
5,077.32 |
Profit before Tax |
6,420.07 |
5,075.28 |
6,420.48 |
5,077.32 |
Tax Expenses |
1,646.65 |
1,315.13 |
1,646.65 |
1,315.13 |
Profit for the Year |
4,773.42 |
3,760.15 |
4,773.83 |
3,762.19 |
Other Comprehensive Income for the year, net of tax |
(0.60) |
7.91 |
(0.62) |
7.91 |
Total Comprehensive income for the year, net of tax |
4,772.82 |
3,768.06 |
4,773.21 |
3,770.10 |
Note: Previous year figures have been re-grouped / r
REVIEW OF BUSINESS OPERATIONS ON STANDALONE BASIS
During the year, your Company achieved a turnover of '' 69,123.30 million as against '' 57,269.91 million in FY 2021-22, showing a strong growth of 20.70%. During the year under review, turnover from Cables & Wires segment stood at '' 62,539.08 million as compared to '' 51,231.24 million in FY 2021-22, turnover from Stainless Steel Wire segment was '' 2,550.93 million during FY 2022-23 as compared to '' 2,259.37 million in FY 2021-22 and EPC Projects Segment revenue (excluding Cables) contributed a turnover of '' 4,033.29 million in FY 2022-23 as compared to '' 3,779.30 million in FY 2021-
3-arranged wherever necessary.
22. During the year under review, Profit before Tax stood at '' 6,420.48 million as compared to '' 5,077.32 million in the preceding year and Net Profit stood at '' 4,773.83 million as compared to '' 3,762.19 million in the preceding year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
Company has a subsidiary "KEI Cables Australia PTY Ltd" in Australia and an associate company with 49% ownership interest under name of KEI Cables SA (PTY) Ltd with principal place of business in South Africa. During the year, Joint Venture between the Company and Brugg Kabel AG, Switzerland which was formed for the specific purpose of bid and
execution of a specific project has been dissolved w.e.f. November 14, 2022. The dissolution will not have any impact on the operations of the Company and is not material to the Company. However, Company''s technical collaboration with Brugg Kabel AG, Switzerland for 400kV Extra High Voltage Cable is continuing.
Further, pursuant to Section 129(3) of the Companies Act, 2013 a report on the performance and financial position of the Subsidiary, Associate and Joint Venture is disclosed in Form AOC-1 in Annexure-A and forms part of this report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) - 110 - "Consolidated Financial Statements" and Indian Accounting Standard (Ind AS) - 111 - "Financial Reporting of interest in Joint Venture" specified under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, and other relevant provisions of the Act.
During the year, the Board of Directors of your Company has decided not to transfer any amount to the reserves and decided to retain all the profits under surplus account.
The Board of Directors of the Company at their meeting held on January 23, 2023 has declared an interim dividend of '' 3.00/- (i.e. 150%) per Equity share on the Equity shares of face value of '' 2/- each for the financial year 2022-23 which has resulted in cash outflow of '' 270.58 million. The Board has not recommended a final dividend and the interim dividend of '' 3.00/- per equity share declared by the Board on January 23, 2023 shall be considered as the final dividend for the Financial Year 2022-23. Thus, the total dividend for the Financial Year 202223 remains '' 3.00/- per equity share of '' 2/- each.
Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy of the Company had been updated by the Board of the Directors of the Company on January 23, 2023. The Dividend Distribution Policy is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statements relates and the date of this Report.
During the year under review, there was no change in the nature of business of the Company.
RATING BY EXTERNAL RATING AGENCIES(A) BANK FACILITIES RATING BY INDIA RATINGS AND RESEARCH PRIVATE LIMITED:
India Ratings and Research Private Limited has affirmed IND AA/Positive (Pronounced as IND AA Positive) rating to Long Term Bank Facilities vide its letter dated June 08, 2023. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. India Ratings and Research Private Limited has affirmed IND A1 (Pronounced as IND A One Plus) rating to Short Term Bank Facilities and Commercial Paper vide its letter dated June 08, 2023. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments/facilities carry lowest credit risk.
(B) BANK FACILITIES RATING BY ICRA LIMITED & CARE RATINGS LIMITED:
ICRA Limited & CARE Ratings Limited had assigned [ICRA] AA(Stable) / CARE AA(Stable) rating to Long Term Bank Facilities vide their letter dated August 25, 2022 and August 10, 2022 respectively. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Further, ICRA Limited and CARE Ratings Limited had re-affirmed [ICRA] A1 /
CARE A1 (A one plus) rating to Short-term Bank Facilities vide their letter dated August 25, 2022 and August 10, 2022 respectively. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk. The Surveillance/Review of rating for the current year is under process.
(C) FIXED DEPOSIT RATING BY ICRA AND CARE:
ICRA Limited and CARE Ratings Limited had assigned the rating [ICRA] AA (Stable) / CARE AA (Stable) on the medium-term rating scale to the fixed deposits programme of the Company vide their letter dated August 25, 2022 and August 10, 2022 respectively. The Outlook on the long-term rating is Stable. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The Surveillance/Review of rating for the current year is under process.
The Following are the licenses and other certification existing in your organization.
⢠NABL-ISO/IEC 17025: 2017
⢠CE MARKING (EN ISO/IEC 17020)
⢠RDSO (IRS S:63/2014 (REV 4)
⢠SABS, SANS: 1339:2017
⢠UL 1072 - Medium Voltage Power Cables
Un-claimed / Unpaid Dividend for the Financial Year 2014-15 has been transferred to the Investor Education and Protection Fund established by the Central Government. Further, amount of Unclaimed / Un-paid Dividend for the Financial Year 2015-16 is due for deposit to the Investor Education and Protection Fund on 13.10.2023.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred ? 2,52,252.40 as unclaimed / unpaid dividend in respect of financial year 2014-15 to the Investor Education and Protection Fund
(IEPF) established by the Central Government, pursuant to the provisions of Section 124(5) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time).
Further, the total amount lying in the Unpaid Dividend Account(s) of the Company in respect of the last seven years and when such unpaid Dividend is due for transfer to Investor Education Protection Fund is disclosed in a separate section titled Report on Corporate Governance and has been included in this Annual Report.
Further, during the year under review, your Company has transferred 12,689 Equity shares into the Demat Account of Investor Education and Protection Fund held with NSDL (DPID/Client ID IN300708/10656671) and CDSL (DPID/Client ID 12047200/13676780) pursuant to the provisions of Section 124(6) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time) i.e., shares on which dividend has not been claimed for seven consecutive years i.e., from FY 2014-15.
Further, the details of shareholders whose dividend and shares are transferred to Investor Education and Protection Fund are updated on the website www.kei-ind.com under Investor Relations Section.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)a) Composition
i) As on date, Company has 10 Directors with an Executive Chairman, of the 10 Directors, 3 are Executive Directors and 7 are Non-Executive Directors (including 6 Independent Directors). The Composition of the Board is in conformity with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
ii) None of the Director on the Board is a director in more than 10 Public Companies or a member of more than 10 Committees or a Chairman of more than 5 Committees across all listed companies in which he/ she is a Director. Necessary disclosures regarding Committee positions in other Public Limited Companies as on March 31, 2023 have been disclosed by all the Directors of the Company.
iii) None of the Whole-Time Key Managerial Personnel (KMP) of the Company is holding office in any other Company as a Key Managerial Personnel.
iv) Further, none of the Directors / KMP of the Company is disqualified under any of the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
b) Change in Director(s) and Key Managerial
Personnel
(i) Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at their Meeting held on January 23, 2023 has re-appointed Mr. Sadhu Ram Bansal (Holding DIN: 06471984 as an Independent Director (Category: Non-Executive) of the Company for the second term of 5 (Five) consecutive years w.e.f. January 24, 2023 to January 23, 2028 in accordance with the provisions of Section 149, 150 and 152 of the Companies Act, 2013 read with Schedule IV and Rules made thereunder and other applicable provisions of the Companies Act, 2013, if any. His re-appointment was approved by the shareholders through postal ballot dated March 17, 2023.
(ii) As per Section 152 of the Companies Act, 2013 and other applicable provisions of the Act, Mr. Rajeev Gupta (Holding DIN: 00128865), Executive Director (Finance) & CFO of the Company, who retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.
(iii) Further, based on the recommendation of the Nomination and Remuneration Committee and the Board of Directors of the Company at their Meeting held on July 31, 2023 has re-appointed Mr. Anil Gupta (Holding DIN: 00006422) as Chairman-cum-Managing Director of the Company for a further term of 5 (Five) years w.e.f. July 01, 2024 to June 30, 2029 in accordance with the provisions of Sections 196, 197, 198 and 203 of the Companies Act, 2013 read with Schedule V and Rules made thereunder and other applicable provisions of the Companies Act, 2013, if any. His re-appointment requires the approval of the shareholders at the ensuing Annual General Meeting.
The details of Directors being recommended for appointment / re-appointment as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is contained in the accompanying Notice convening ensuing Annual General Meeting of the Company. Appropriate Resolution(s) seeking shareholders'' approval are also included in the Notice.
c) Declaration by Independent Directors
All the Independent Directors of the Company have given their declaration for the FY 202223 that they continue to meet all the criteria as specified under Section 149(6) & (7) of the Companies Act, 2013 and under Regulation 16(1)
(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and that they are independent of the management in respect of their position as an "Independent Director" in the Company.
Further, in the opinion of the Board, the Independent Directors also possess the attributes of integrity, expertise and experience as required to be disclosed under Rule 8(5)(iiia), of the Companies (Accounts) Rules, 2014.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 4 (Four) times during the financial year from April 01, 2022 to March 31, 2023 on May 09, 2022, July 26, 2022, October 20, 2022, and January 23, 2023.
Further, during the year, a separate meeting of the Independent Directors of the Company was held on March 03, 2023 to discuss and review the performance of all other Non-Independent Directors, Chairperson of the Company and the Board as a whole and for reviewing and assessing the matters as prescribed under Schedule IV of Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the year, Share Allotment Committee of the Board of Directors has issued and allotted 87,000 equity shares of face value of XII- each to eligible employees under KEI Employees Stock Option Scheme 2015. Accordingly, the paid-up share capital of the Company has increased from 9,01,05,438 Equity shares of face value of XII- each to 9,01,92,438 Equity shares of face value of XII-each.
As the ultimate responsibility for sound governance and prudential management of a Company lies with its Board, it is imperative that the Board remains continually pro-active and effective. An important way to achieve this objective is through an annual evaluation of the performance of the Board, its Committees and all the individual Directors.
The Companies Act, 2013 not only mandates Board and Directors evaluation, but also requires the evaluation to be formal, regularized and transparent. SEBI has also notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''Listing Regulations 2015'') on September 02, 2015, whereby it has aligned the present Listing Agreement with the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and on the recommendation of the Nomination and Remuneration Committee at its meeting held on April 25, 2023 and the Board of Directors of the Company at its meeting held on May 02, 2023 undertook an annual evaluation of the performance of the Board, its Committees and all the Individual Directors.
Directors were evaluated on aspects such as attendance, contribution at Board/Committee
meetings and guidance/support to the
management outside Board/Committee meetings. The Committees of the Board were assessed on the degree of fulfillment of key responsibilities, adequacy of Committee composition and
effectiveness of meetings.
The performance evaluation of the Independent Directors was carried out by the whole Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board, its Committees and the Directors.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 in respect of Directors'' Responsibility Statement, the Directors to the best of their knowledge hereby state and confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis;
(e) The directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and
(f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
DETAILS IN RESPECT OF FRAUD REPORTED BY THE AUDITORS
There were no instances of fraud reported by the auditors.
NOMINATION AND REMUNERATION POLICY
The Company has framed a Nomination and Remuneration Policy on Director''s appointment and remuneration including criteria for determining qualifications, positive attributes and independence of a director and other matters pursuant to Section 178 of the Companies Act, 2013 and Regulation 19(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Specified in Part D of the Schedule II).
The detailed Nomination & Remuneration Policy is annexed as Annexure-B and forms part of this Report and is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
Pursuant to Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013 the Annual Return as on March 31, 2023 is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defined Enterprise-wide Risk Management (ERM) framework in place for identifying risks and opportunities that may have a bearing on the organization''s objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy. The primary objective of ERM function is to implement a framework that augments risk response decisions and reduce surprises. ERM Programme involves risk identification, risk categorization, assessment, risk mitigation and risk reporting and disclosure for strategic, operational, financial & reporting risk, compliance related risks and IT-related risk across various levels of the organization.
The Company''s internal control systems are commensurate with the nature of its business and the size and complexity of operations. These systems are routinely tested by Statutory as well as
Internal Auditors and cover all offices, factories and key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee. Further, the Risk Management Policy has also been uploaded on the Company''s website and is available at www.kei-ind.com under Investor Relations Section.
FIXED DEPOSITS
During the year, no amount has been received by the Company as fixed deposit. As on March 31, 2023 outstanding amount is Nil. There are no fixed deposits remaining unpaid or unclaimed as at the end of the year. Further, no amount of principal or interest was outstanding or in default as on March 31, 2023.
LISTING OF SHARES
The shares of the Company are listed at National Stock Exchange of India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange Limited (CSE). The Company has paid its up-to-date listing fees to all the stock exchanges.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
During the year, there was no significant and material order passed by any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate system of internal control commensurate with its size and nature of business. This system provides a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Board has appointed M/s. Jagdish Chand & Co., Chartered Accountants as Internal Auditors of the Company for the financial year 2023-24 and its audit reports are submitted directly to the Audit Committee of Board which reviews and approves performance of internal audit function and ensures the necessary checks and balances that may need to be built into the control system.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR.
During the year, no application has been made and no proceeding is pending against the company under the Insolvency and Bankruptcy Code, 2016 as at the end of financial year.
IN CASE THE SECURITIES ARE SUSPENDED FROM TRADING, THE DIRECTORS'' REPORT SHALL INCLUDE THE REASON THEREOF
Not Applicable
DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF.
There is no instance of one-time settlement with any bank or financial institutions.
HUMAN RESOURCES
Company''s industrial relations continued to be harmonious during the period under review.
POLICY ON MATERIAL SUBSIDIARY
The Company has framed a Policy on Material Subsidiary under Regulations 16(1)(C) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
AUDIT COMMITTEE
Pursuant to the provisions of Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the composition of the Audit Committee is as under:
Sl. No. |
Name of the Director |
Category |
Profession |
1. |
Mr. Pawan Bholusaria |
Independent Director (Chairman) |
Chartered Accountant |
2. |
Mr. Kishan Gopal Somani |
Independent Director (Member) |
Chartered Accountant |
3. |
Mr. Vikram Bhartia |
Independent Director (Member) |
Business |
4. |
Mr. Sadhu Ram Bansal |
Independent Director (Member) |
Ex-Banker (Former Chairman & MD of Corporation Bank |
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the Company acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee during the Financial Year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company has established a Vigil Mechanism/ Whistle Blower Mechanism and oversees through the Audit Committee, the genuine concerns expressed by the employees and Directors of the Company. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of coemployees and the Company. During the year under review, no personnel has been denied access to the Audit Committee.
Further, the Vigil Mechanism/ Whistle Blower Policy have been uploaded on the website of the Company at www.kei-ind.com under Investor Relations Section.
SHARES
a. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of its securities.
b. SWEAT EQUITY
During the year under review, the Company has not issued any Sweat Equity Shares.
C. BONUS SHARES
During the year under review, no Bonus Shares were issued by the Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year, Share Allotment Committee of the Board has allotted 87,000 Equity Shares of face value XU- each to eligible employees of the Company at an exercise price of X 225/- per share pursuant to KEI Employee Stock Option Scheme, 2015.
During the Financial Year 2022-23, there has been no change in the Employee Stock Option Scheme of the Company. The ESOP Scheme(s) is in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (''the SBEB Regulations'').
Further, the Company has obtained a certificate from S.K. Batra & Associates, Secretarial Auditors under Regulation 13 of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021 (''SBEB Regulations'') stating that the scheme(s) has been implemented in accordance with the SBEB Regulations.
AUDITORS
a) Statutory Auditors:
M/s. PAWAN SHUBHAM & CO., Chartered Accountants (Firm Registration Number: 011573C) were appointed as Statutory Auditors of the Company at the Annual General Meeting (AGM) held on September 07, 2022 for a term of five consecutive years i.e., from the conclusion of 30th AGM till the conclusion of 35th AGM of the Company to be held in the year 2027 pursuant to Section 139 of the Companies Act, 2013.
Statutory Auditors'' Report
The observations / comments of Statutory Auditors in their Auditor''s Report are selfexplanatory and therefore do not call for any further clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. S. Chander & Associates, Cost Accountants
(Membership No.: 9455) as Cost Auditor of the Company to conduct audit of Cost Records maintained by the Company for the Financial Year 2023-24 in accordance with Section 148 and the Companies (Cost Records and Audit) Rules, 2014 after obtaining his consent and certificate under Section 139, 141 and 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 where they have confirmed their consent and eligibility to act as Cost Auditors of the Company.
Your Company has maintained cost records and accounts as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.
Cost Audit Report
There are no qualifications, reservations or adverse remarks made by Cost Auditors in their Report for FY 2022-23. Further, the Cost Audit Report for the FY 2021-22 was filed on August 24, 2022 and for the FY 2022-23, the Cost Audit Report to be filed within due date.
c) Secretarial Auditors
The Board of Directors has appointed Mr. Sumit Kumar Batra (Membership No. FCS - 7714 & CP No.- 8072), Proprietor of S.K. Batra & Associates, Practicing Company Secretaries, as Secretarial Auditors of the Company pursuant to the provisions of Section 204 of the Companies Act, 2013 read with corresponding rules made thereunder for conducting Secretarial Audit of the Company for the financial year 2023-24.
Secretarial Audit Report
The Secretarial Audit Report for the FY 2022-23 as submitted by Secretarial Auditors in Form MR-3 is annexed to this Report as Annexure - C and form part of this report.
There are no qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report.
Annual Secretarial Compliance Report
A Secretarial Compliance Report for the financial year ended March 31, 2023 on compliance of all applicable SEBI Regulations and circulars/ guidelines issued thereunder, was obtained from M/s S.K. Batra & Associates, Secretarial Auditors, and submitted to the stock exchanges.
CORPORATE SOCIAL RESPONSIBILITY
The Company has framed a Policy on Corporate Social Responsibility pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section. The Annual Report on Company''s CSR activities of the Company as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure-D and forms part of this report. LOAN(S), GUARANTEE(S) OR INVESTMENT(S) During the year, your Company has duly complied with the provisions of Section 186 of the Companies Act, 2013. The particulars of Loan given, Corporate Guarantees provided and Investment made by the Company during the year are as follows:
Sl. No. |
Particulars of Loan given, Corporate Guarantees and Investment made u/s 186 of the Companies Act, 2013 |
Amount ('' in Million) |
1. |
First Loss Default Guarantee in favour of DBS Bank India Limited against Channel Financing Facility provided to the Dealers of the Company. |
150.00 |
2. |
First Loss Default Guarantee in favour of Yes Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
1,100.00 |
3. |
First Loss Default Guarantee in favour of ICICI Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
150.00 |
4. |
First Loss Default Guarantee in favour of IDBI Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
125.00 |
5. |
First Loss Default Guarantee in favour of IndusInd Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
500.00 |
6. |
First Loss Default Guarantee in favour of Union Bank of India against Channel Financing Facility provided to the Dealers of the Company. |
1,000.00 |
Total |
3,025.00 |
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment free workplace for every individual working in the Company. Your Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
In accordance with "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013" and in order to provide for the effective enforcement of the basic human right of gender equality and guarantee against sexual harassment and abuse, more particularly against sexual harassment at work places, your Company has constituted an Internal Complaint Committee and adopted a policy on Prevention of Sexual Harassment at Workplace. The policy aims to provide the effective enforcement of basic human right of gender equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal Complaint Committee, formed under "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013".
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:
The information required under Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign Exchange Earnings and Outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure-F and forms part of this Report.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the Financial Year, the Company has not entered into any materially significant related party contracts/ arrangements or transactions with the
Company''s promoters, Directors, management or their relatives, which could have had a potential conflict with the interests of the Company. All the contracts/arrangements or transactions entered into by the Company with Related party(ies) are in conformity with the provisions of the Companies Act, 2013.
The particulars of every contract or arrangement if entered into by the Company with the related parties referred to in sub - section (1) of Section 188 of the Companies Act, 2013 including certain arm''s length transactions under third proviso thereto are disclosed in Form AOC - 2 in Annexure-G and forms part of this Report.
The Company presents a statement of all related party contracts / arrangements or transactions entered into by the Company before the Audit Committee for its consideration and review on quarterly basis.
Further, the Policy on materiality of Related Party Transactions as formed and approved by the Audit Committee and the Board of Directors as per Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the website of the Company at www. kei-ind.com under Investor Relations Section.
CORPORATE GOVERNANCE
Your Directors are pleased to report that your Company strives to ensure that best corporate governance practices are identified, adopted and consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholder''s value.
Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate Section titled Report on Corporate Governance has been included in this Annual Report and the certificate of M/s Pawan Shubham & Co., Chartered Accountants, the Statutory Auditors of the Company certifying compliance with the conditions of Corporate Governance as stipulated under relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is obtained and annexed with the report on Corporate Governance.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section and forms part of this Annual Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)
In terms of Regulation 34(2)(f) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, detailed information on the initiatives taken by the Company from an environmental, social and governance perspective is provided in the Business Responsibility and Sustainability Report which forms part of this Report.
Your Directors place on record their sincere appreciation for significant contribution made by employees of the Company at each level, through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued co-operation and support extended to the Company by various Banks, Stock Exchanges, NSDL and CDSL. The Board wishes to express its grateful appreciation for the assistance and co-operation received from Vendors, Customers Consultants, Banks, Financial Institutions, Central and State Government bodies, Dealers, and other Business Associates. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and, above all, the shareholders.
For and on behalf of Board of Directors of KEI Industries Limited
(ANIL GUPTA) Chairman-cum-Managing Director DIN:00006422
Date: July 31, 2023 Place: New Delhi
Mar 31, 2022
Your Directors have pleasure in presenting their 30th Annual Report, together with the Audited Annual Standalone and Consolidated Financial Statements of the Company for the year ended March 31,2022.
('' in Millions) |
||||
Particulars |
Conso |
idated |
Stanc |
alone |
Year ended March 31, 2022 |
Year ended March 31,2021 (Restated*) |
Year ended March 31, 2022 |
Year ended March 31, 2021 (Restated*) |
|
Revenue from Operations and Other Income |
57,411.47 |
42,015.97 |
57,414.36 |
42,015.48 |
Profit before Finance Costs, Depreciation and Amortisation Expenses and Tax Expenses |
6,033.41 |
4,755.29 |
6,035.79 |
4,755.29 |
Less: Finance Cost |
403.94 |
573.09 |
403.93 |
573.08 |
Less: Depreciation and Amortisation Expenses |
554.54 |
578.14 |
554.54 |
578.14 |
Profit before Exceptional Items and Tax |
5,074.93 |
3,604.06 |
5,077.32 |
3,604.07 |
Profit/(Loss) before share of Profit/ (Loss) of Joint Venture & Associates Company and Tax |
5,074.93 |
3,604.06 |
- |
- |
Share of Profit/(Loss) of Joint Venture (net of Tax) |
0.35 |
1.00 |
- |
- |
Share of Profit/(Loss) of Associate Company (net of Tax) |
- |
- |
- |
- |
Profit before Tax |
5,075.28 |
3,605.06 |
5,077.32 |
3,604.07 |
Tax Expenses |
||||
-Current Tax |
1,313.51 |
958.22 |
1,313.51 |
958.22 |
-Deferred Tax (Credit/Charge) |
2.06 |
(32.33) |
2.06 |
(32.33) |
Short/(Excess) Provision-Earlier Years |
(0.44) |
(17.32) |
(0.44) |
(17.32) |
Profit for the Year |
3,760.15 |
2,696.49 |
3,762.19 |
2,695.50 |
Other Comprehensive Income for the year, net of tax |
7.91 |
8.78 |
7.91 |
9.24 |
Total Comprehensive income for the year, net of tax |
3,768.06 |
2,705.27 |
3,770.10 |
2,704.74 |
Profit for the year attributable to: |
||||
Equity Shareholders of the parent Company |
3,760.21 |
2,695.47 |
3,762.19 |
2,695.50 |
Non-controlling interest |
(0.06) |
1.02 |
- |
- |
Total comprehensive income for the year attributable to: |
||||
Equity Shareholder of the parent company |
3,768.12 |
2,704.30 |
3,770.10 |
2,704.74 |
Non-controlling interest |
(0.06) |
0.97 |
- |
- |
*Impact on financial statement due to change in accounting policy in accordance with Ind-AS 8 (Accounting Policies, Change in Accounting Estimates and Error) read with Ind-AS 1 presentation of financial statements.
FINANCIAL SUMMARY
The Company''s financial performances for the year ended March 31, 2022 along with previous year''s figures are summarized below:
REVIEW OF BUSINESS OPERATIONS ON STANDALONE BASIS
During the year, your Company achieved a turnover of '' 57,265.51 millions as against '' 41,814.88 millions in FY 2020-21,showing a strong growth of 36.95%. During the year under review, turnover from Cables & Wires stood at '' 51,226.84 millions as compared to '' 35,742.11 millions in FY 2020-21, turnover from Stainless Steel Wire Products was '' 2,259.37 millions during FY 2021-22 as compared to '' 1,416.53 millions in FY 2020-21 and Income from Turnkey Projects (excluding Cables) contributed a turnover of '' 3,779.30 millions in FY 2021-22 as compared to '' 4,656.24 millions in FY 2020-21. During the year under review, Profit before Tax stood at '' 5,077.32 millions as compared to '' 3,604.07 millions in the preceding year and Net Profit stood at '' 3,762.19 millions as compared to '' 2,695.50 millions in the preceding year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
Company has a subsidiary "KEI Cables Australia PTY Ltd" in Australia and an associate company with 49% ownership interest under name of KEI Cables SA (PTY) Ltd with principal place of business in South Africa. Further, Company has a Joint Venture under the name of "Joint Venture of M/s KEI Industries Ltd., New Delhi & M/s Brugg Kabel AG, Switzerland" (JV). This JV is a jointly controlled entity within the meaning of Ind AS-111 on "Financial Reporting of Interests in Joint Ventures". This JV is in the form of an Association of Persons (AOP) and the Company is having 100% share in Profit/Loss in this AOP. No share capital is invested in the Joint Venture by the respective members of JV.
Further, pursuant to Section 129(3) of the Companies Act, 2013 a report on the performance and financial position of the Subsidiary, Associate and Joint Venture is disclosed in Form AOC-1 in Annexure-A and forms part of this report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) 110 - "Consolidated Financial Statements" and Indian Accounting Standard (Ind AS) - 111 - "Financial Reporting of interest in Joint Venture" specified under Section 133 of the Companies Act, 2013 (the Act), Companies (Indian Accounting Standards) Rules, 2015, and other relevant provisions of the Act.
During the year, the Board of Directors of your Company has decided not to transfer any amount to the reserves and decided to retain all the profits under surplus account.
The Board of Directors of the Company at their meeting held on January 27, 2022 has declared an interim dividend of '' 2.50/- (i.e. 125%) per Equity share on the Equity shares of face value of '' 2/- each for the financial year 2021-22 which has resulted in cash outflow of '' 225.26 millions. The Board has not recommended a final dividend and the interim dividend of '' 2.50/- per equity share declared by the Board on January 27, 2022 shall be considered as the final dividend for the Financial Year 2021-22. Thus, the total dividend for the Financial Year 202122 remains '' 2.50/- per equity share of '' 2/- each.
Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Dividend Distribution Policy of the Company had been approved by the Board of the Directors of the Company on May 17, 2018. The Dividend Distribution Policy is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statements relates and the date of this Report.
During the year under review, there was no change in the nature of business of the Company.
RATING BY EXTERNAL RATING AGENCIES(A) BANK FACILITIES RATING BY INDIA RATINGS AND RESEARCH PRIVATE LIMITED:
India Ratings and Research Private Limited has upgraded and assigned the IND AA / Stable (Pronounced as IND AA Stable) rating to Long
Term Bank Facilities availed by the Company vide its letter dated June 09, 2022. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. India Ratings and Research Private Limited has affirmed the IND A1 (Pronounced as IND A One Plus) rating to Short Term Bank Facilities and Commercial Paper availed by the Company vide its letter dated June 09, 2022. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments/facilities carry lowest credit risk.
(B) BANK FACILITIES RATING BY ICRA:
ICRA Limited had assigned [ICRA]AA-(Stable) (pronounced ICRA double A minus) rating to Long Term Bank Facilities availed by the Company vide its letter dated September 15, 2021. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. ICRA Limited had assigned [ICRA] A1 (pronounced ICRA A one plus) rating to Short-term Bank Facilities availed by the Company vide its letter dated September 15, 2021. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk. The Surveillance / Review of rating for the current year is under process.
(C) BANK FACILITIES RATING BY CARE:
CARE Rating Limited (CARE) had assigned CARE AA-; Stable (Double A Minus; Outlook: Stable)
rating to Long Term Bank Facilities availed by the Company vide its letter dated August 30, 2021. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. CARE Rating Limited (CARE) had assigned CARE A1 (A one plus) rating Short-term Bank Facilities availed by the Company vide its letter dated August 30, 2021. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk. The Surveillance/Review of rating for the current year is under process.
(D) FIXED DEPOSIT RATING BY ICRA AND CARE:
As per Securities and Exchange Board of India ("SEBI") circular SEBI/ HO/ MIRSD/ MIRSD_ CRADT /P /CIR /2021/594 dated July 16, 2021
regarding standardizing the rating scales used by the credit rating agencies ICRA has migrated the outstanding rating i.e MAA- (Stable) on the medium-term rating scale assigned to the fixed deposits programme of your Company to [ICRA]AA-(Stable) on the long-term rating scale on June 01, 2022. The Outlook on the long-term rating is Stable. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The Surveillance/Review of rating for the current year is under process.
Further, CARE Rating Limited (CARE) had assigned CARE AA- (FD); Stable [Double A Minus (Fixed Deposit); Outlook: Stable] rating to the Medium Term Instrument i.e. Fixed Deposits Scheme of the Company vide its letter dated August 30, 2021. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The Surveillance/Review of rating for the current year is under process.
The following are the licenses and other certification existing in your organization.
⢠NABL-ISO/IEC 17025: 2017
⢠CE MARKING (EN ISO/IEC 17020)
⢠RDSO (IRS S:63/2014 (REV 4)
⢠SABS, SANS: 1339:2017
⢠UL 1072 - Medium - Voltage Power Cables
Un-claimed / Unpaid Dividend for the Financial Year 2013-14 has been transferred to the Investor Education and Protection Fund established by the Central Government. Further, amount of Unclaimed / Un-paid Dividend for the Financial Year 2014-15 is due for deposit to the Investor Education and Protection Fund on October 23, 2022.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred ''1,16,377/- as unclaimed / unpaid dividend in respect of Financial Year 2013-14 to the Investor Education and Protection Fund (IEPF) established by the Central Government, pursuant to the provisions of Section 124(5) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time).
Further, the total amount lying in the Unpaid Dividend Account(s) of the Company in respect of the last seven years and when such unpaid dividend is due for transfer to Investor Education Protection Fund is disclosed in a separate section titled Report on Corporate Governance and has been included in this Annual Report.
Further, during the year under review, your Company has transferred 5,138 Equity Shares into the Demat Account of Investor Education and Protection Fund held with NSDL (DPID/Client ID IN300708/10656671) and CDSL (DPID/Client ID 12047200/13676780) pursuant to the provisions of Section 124(6) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time) i.e., shares on which dividend has not been claimed for seven consecutive years i.e., from FY 2013-14.
Further, the details of shareholders whose dividend and shares are transferred to Investor Education and Protection Fund are updated on the website http:// www.kei-ind.com under Investor Relations Section.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
a) Composition
i) As on date, Company has 10 Directors with an Executive Chairman. Of the 10 Directors, 3 are Executive Directors and 7 are Non-Executive Directors including two Women Directors and 5 other Independent Directors. The Composition of the Board
is in conformity with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
ii) None of the Director on the Board is a director in more than 10 Public Companies or a member of more than 10 Committees or a Chairman of more than 5 Committees across all listed companies in which he/ she is a Director. Necessary disclosures regarding Committee positions in other Public Limited Companies as on March 31, 2022 have been disclosed by all the Directors of the Company.
iii) None of the Whole-Time Key Managerial Personnel (KMP) of the Company is holding office in any other Company as a Key Managerial Personnel.
iv) Further, none of the Directors / KMP of the Company is disqualified under any of the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
b) Change in Director(s) and Key Managerial
Personnel
(i) As per Section 152 of the Companies Act, 2013 and other applicable provisions of the Act, Mr. Akshit Diviaj Gupta (holding DIN: 07814690), Whole Time Director of the Company, who retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. The details of Directors being recommended for appointment / re-appointment as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is contained in the accompanying Notice convening ensuing Annual General Meeting of the Company.
(ii) Further, based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at their Meeting held on January 27, 2022 has re-appointed Mr. Akshit Diviaj Gupta (holding DIN: 07814690) as Whole Time Director of the Company for a further term of 5 (Five) years w.e.f. May 10, 2022
to May 09, 2027 in accordance with the provisions of Section 196 and 197 of the Companies Act, 2013 read with Schedule V and Rules made thereunder and other applicable provisions of the Companies Act, 2013, if any. His re-appointment was approved by the shareholders through postal ballot dated April 24, 2022.
c) Declaration by Independent Directors
All the Independent Directors of the Company have given their declaration for the FY 2021-22 that they continue to meet all the criteria as specified under Section 149(6) & (7) of the Companies Act, 2013 and under Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and that they are independent of the management in respect of their position as an âIndependent Director" in the Company.
Further, in the opinion of the Board, the Independent Directors also possess the attributes of integrity, expertise and experience as required to be disclosed under Rule 8(5)(iiia) of the Companies (Accounts) Rules, 2014.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 5 (Five) times during the financial year from April 01, 2021 to March 31, 2022 on May 29, 2021, July 31, 2021, October 27, 2021, January 27, 2022, and March 24, 2022.
Further, during the year, a separate meeting of the Independent Directors of the Company was held on March 24, 2022 to discuss and review the performance of all other non- independent Directors, Chairperson of the Company and the Board as a whole and for reviewing and assessing the matters as prescribed under Schedule IV of the Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
CHANGE IN CAPITAL STRUCTURE
During the year, Share Allotment Committee of the Board of Directors has issued and allotted 2,50,000 equity shares of face value of ''2/- each to eligible employees under KEI Employees Stock Option Scheme 2015. Accordingly, the paid-up share capital of the Company has increased from 8,98,55,438 Equity Shares of face value of XU- each
to 9,01,05,438 Equity Shares of face value of XII-each.
As the ultimate responsibility for sound governance and prudential management of a Company lies with its Board, it is imperative that the Board remains continually pro-active and effective. An important way to achieve this objective is through an annual evaluation of the performance of the Board, its Committees and all the individual Directors.
The Companies Act, 2013 not only mandates Board and Directors evaluation, but also requires the evaluation to be formal, regularized and transparent. SEBI has also notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''Listing Regulations 2015'') on September 02, 2015, whereby it has aligned the present Listing Agreement with the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at its meeting held on March 24, 2022 undertook an annual evaluation of the performance of the Board, its Committees and all the individual Directors.
Directors were evaluated on aspects such as attendance, contribution at Board/Committee meetings and guidance/support to the management outside Board/Committee meetings. The Committees of the Board were assessed on the degree of fulfillment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.
The performance evaluation of the Independent Directors was carried out by the whole Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board, its Committees and the Directors.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 in respect of Directors'' Responsibility Statement, the Directors to the best of their knowledge hereby state and confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis;
(e) The directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and
(f) The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
DETAILS IN RESPECT OF FRAUD REPORTED BY THE AUDITORS
There were no instances of fraud reported by the auditors.
NOMINATION AND REMUNERATION POLICY
The Company has framed a Nomination and Remuneration Policy pursuant to Section 178 of the Companies Act, 2013 and Regulation 19(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Specified in Part D of the Schedule II).
The detailed Nomination & Remuneration Policy is annexed as Annexure-B and forms part of this Report and is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
Pursuant to Section 92(3) read with Section 134(3) (a) of the Companies Act, 2013 the Annual Return as on March 31, 2022 is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defined Enterprise-wide Risk Management (ERM) framework in place for identifying risks and opportunities that may have a bearing on the organization''s objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy. The primary objective of ERM function is to implement a framework that augments risk response decisions and reduce surprises. ERM Programme involves risk identification, assessment and risk mitigation planning for strategic, operational, financial and compliance related risks across various levels of the organization.
The Company''s internal control systems are commensurate with the nature of its business and the size and complexity of operations. These systems are routinely tested by Statutory as well as Internal Auditors and cover all offices, factories and key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee. Further, the Risk Management Policy has also been uploaded on the Company''s website and is available at www.kei-ind.com under Investor Relations Section.
During the year, an amount of '' 11.60 million was received by the Company as fixed deposit. As on March 31, 2022 outstanding amount is Nil due to repayment of fixed deposits. There are no fixed deposits remaining unpaid or unclaimed as at the end of the year. Further, no amount of principal or interest was outstanding or in default as on March 31,2022.
The shares of the Company are listed at National Stock Exchange of India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange Limited (CSE). The Company has paid its up-to-date listing fees to all the stock exchanges.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
During the year, there was no significant and material order passed by any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate system of internal control commensurate with its size and nature of business. This system provides a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Board has appointed M/s. Jagdish Chand & Co., Chartered Accountants as Internal Auditors of the Company for the financial year 2022-23 and its audit reports are submitted directly to the Audit Committee of Board which reviews and approves performance of internal audit function and ensures the necessary checks and balances that may need to be built into the control system.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONG WITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR.
During the year, no application has been made and no proceeding is pending against the company under the Insolvency and Bankruptcy Code, 2016 as at the end of financial year.
DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF.
There is no instance of one-time settlement with any bank or financial institutions.
Company''s industrial relations continued to be harmonious during the period under review.
The Company has framed a Policy on Material
Subsidiary under Regulations 16(1)(c) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company is in compliance with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.
Pursuant to the provisions of Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the composition of the Audit Committee is as under:
Sl. No. |
Name of the Director |
Category |
Profession |
1. |
Mr. Pawan Bholusaria |
Independent Director (Chairman) |
Chartered Accountant |
2. |
Mr. Kishan Gopal Somani |
Independent Director (Member) |
Chartered Accountant |
3. |
Mr. Vikram Bhartia |
Independent Director (Member) |
Business |
4. |
Mr. Sadhu Ram Bansal |
Independent Director (Member) |
Ex-Banker (Former Chairman & MD of Corporation Bank) |
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the Company acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee during the Financial Year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company has established a Vigil Mechanism/ Whistle Blower Mechanism
AUDITORS
a) Statutory Auditors:
M/s. PAWAN SHUBHAM & CO., Chartered Accountants (Firm Registration No. 011573C) were appointed as Statutory Auditors of the company at the 25th AGM held on July 19, 2017, for a period of five years till the conclusion of the 30th AGM. Consequently, M/s. PAWAN SHUBHAM & CO., Chartered Accountants, completed their first term of Five consecutive years as the Statutory Auditors of the company at the conclusion of 30th AGM of the company.
Pursuant to section 139(2) of the Act, the company can re-appoint auditors firm for a second term of five consecutive years. M/s. PAWAN SHUBHAM & CO., have consented to the said re-appointment, and confirmed that their re-appointment, if made, would be within the limits specified under Section 141(3)(g) of the Act. They have further confirmed that they are not disqualified to be reappointed as Statutory Auditors in terms of the provisions of the Act, and the provisions of the Companies (Audit and Auditors) Rules, 2014, as amended from time to time.
The Audit Committee and the Board of Directors has approved re-appointment of M/s. PAWAN SHUBHAM & CO., Chartered Accountants, as Statutory Auditors of the Company for a second term of Five consecutive years from the conclusion of the 30th AGM till the conclusion of 35th AGM, subject to the approval of shareholders.
Statutory Auditors'' Report
The observations / comments of Statutory Auditors in their Auditor''s Report are selfexplanatory and therefore do not call for any further clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. S. Chander & Associates, Cost Accountants (Membership No. 9455) as Cost Auditor of the Company to conduct audit of Cost Records maintained by the Company for the Financial Year 2022-23 in accordance with Section 148 and the Companies (Cost Records and Audit) Rules, 2014 after obtaining his consent and certificate under Section 139, 141 and 148 of the
and oversees through the Audit Committee, the genuine concerns expressed by the employees and Directors of the Company. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of coemployees and the Company. During the year under review, no personnel has been denied access to the Audit Committee.
Further, the Vigil Mechanism/ Whistle Blower Policy have been uploaded on the website of the Company at www.kei-ind.com under Investor Relations Section.
SHARESa. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of its securities.
During the year under review, the Company has not issued any Sweat Equity Shares.
During the year under review, no Bonus Shares were issued by the Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year, Share Allotment Committee of the Board has allotted 2,50,000 Equity Shares of face value '' 2/- each to eligible employees of the Company at an exercise price of '' 225/- per share pursuant to KEI Employee Stock Option Scheme, 2015.
During the Financial Year 2021-22, there has been no change in the Employee Stock Option Scheme of the Company. The ESOP Scheme(s) is in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (''the SBEB Regulations'').
Further, the Company has obtained a certificate from M/s. S.K. Batra & Associates, Secretarial Auditors under Regulation 13 of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations 2021 (''SBEB Regulations'') stating that the scheme(s) has been implemented in accordance with the SBEB Regulations.
Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 where they have confirmed their consent and eligibility to act as Cost Auditors of the Company.
Your Company has maintained cost records and accounts as specified by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013.
Cost Audit Report
There are no qualifications, reservations or adverse remarks made by Cost Auditors in their Report for FY 2021-22. Further, the Cost Audit Report for the FY 2020-21 was filed on August 29, 2021 and for the FY 2021-22 the Cost Audit Report to be filed within due date.
c) Secretarial Auditors
The Board of Directors has appointed Mr. Sumit Kumar Batra (Membership No. FCS - 7714 & CP No. - 8072), Proprietor of S.K. Batra & Associates, Practicing Company Secretaries, as Secretarial Auditors of the Company pursuant to the provisions of Section 204 of the Companies Act, 2013 read with corresponding rules made thereunder for conducting Secretarial Audit of the Company for the Financial Year 2022-23.
Secretarial Audit Report
The Secretarial Audit Report for the FY 2021-22 as submitted by Secretarial Auditors in Form MR-3 is annexed to this Report as Annexure - C and form part of this report.
There are no qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report.
Annual Secretarial Compliance Report
A Secretarial Compliance Report for the financial year ended March 31, 2022 on compliance of all applicable SEBI Regulations and circulars/ guidelines issued thereunder, was obtained from M/s S.K. Batra & Associates, Secretarial Auditors, and submitted to the stock exchanges.
CORPORATE SOCIAL RESPONSIBILITY
The Company has framed a Policy on Corporate Social Responsibility pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
The Annual Report on Company''s CSR activities of the Company as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure-D and forms part of this report.
LOAN(S), GUARANTEE(S) OR INVESTMENT(S)
During the year, your Company has duly complied with the provisions of Section 186 of the Companies Act, 2013. The particulars of Loan given, Corporate Guarantees provided and Investment made by the Company during the year are as follows:
Sl. No. |
Particulars of Loan given, Corporate Guarantees and Investment made u/s 186 of the Companies Act, 2013 |
Amount ('' in Millions) |
1. |
Loan of AUD 20,000 given to Subsidiary namely "KEI Cables Australia Pty Ltd". |
1.13 |
2. |
First Loss Default Guarantee in favour of Union Bank of India against Channel Financing Facility provided to the Dealers of the Company. |
625.00 |
3. |
First Loss Default Guarantee in favour of State Bank of India against Channel Financing Facility provided to the Dealers of the Company. |
300.00 |
4. |
First Loss Default Guarantee in favour of Yes Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
250.00 |
5. |
First Loss Default Guarantee in favour of Axis Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
450.00 |
Total |
1,626.13 |
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment free workplace for every individual working in the Company. Your Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
In accordance with âThe Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013" and in order to provide for the effective enforcement of the basic human right of gender equality and guarantee against sexual harassment and abuse, more particularly against sexual harassment at work places, your Company has constituted an Internal Complaint Committee and adopted a policy on Prevention of Sexual Harassment at Workplace. The policy aims to provide the effective enforcement of basic human right of gender equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal Complaint Committee, formed under âThe Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013".
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:
The information required under Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure-E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure-F and forms part of this Report.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the Financial Year, the Company has not entered into any materially significant related party contracts/ arrangements or transactions with the Company''s promoters, Directors, management or their relatives, which could have had a potential conflict with the interests of the Company. All the contracts/arrangements or transactions entered into by the Company with Related party(ies) are in conformity with the provisions of the Companies Act, 2013.
The particulars of every contract or arrangement if entered into by the Company with the related parties referred to in sub - section (1) of Section 188 of the Companies Act, 2013 including certain arm''s length transactions under third proviso thereto are disclosed in Form AOC - 2 in Annexure-G and forms part of this Report.
The Company presents a statement of all related party contracts / arrangements or transactions entered into by the Company before the Audit Committee for its consideration and review on quarterly basis.
Further, the Policy on materiality of Related Party Transactions as formed and approved by the Audit Committee and the Board of Directors as per Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the website of the Company at www. kei-ind.com under Investor Relations Section.
Your Directors are pleased to report that your Company strives to ensure that best corporate governance practices are identified, adopted and consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholder''s value.
Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate Section titled Report on Corporate Governance has been included in this Annual Report and the certificate of M/s. Pawan Shubham & Co., Chartered Accountants, the statutory auditors of the Company certifying compliance with the conditions of corporate governance as stipulated under relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is obtained and annexed with the report on Corporate Governance.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section and forms part of this Annual Report.
In terms of Regulation 34(2)(f) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, detailed information on the initiatives taken by the Company from an environmental, social and governance perspective is provided in the Business Responsibility Report which forms part of this Report.
Your Directors place on record their sincere appreciation for significant contribution made by employees of the Company at each level, through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued co-operation and support extended to the Company by various Banks, Stock Exchanges, NSDL and CDSL. The Board wishes to express its grateful appreciation for the assistance and co-operation received from Vendors, Customers Consultants, Banks, Financial Institutions, Central and State Government bodies, Dealers, and other Business Associates. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and, above all, the shareholders.
Mar 31, 2018
To The Members
The Directors have pleasure in presenting their 26th Annual Report, together with the Audited Annual Standalone and Consolidated Financial Statements of the Company for the year ended March 31, 2018.
FINANCIAL SUMMARY
The Companyâs financial performance for the year ended March 31, 2018 along with previous yearâs figures are summarized below:
(Rs. in Millions)
Consolidated |
Standalone |
|||
Particulars |
Year ended March 31, 2018 |
Year ended* March 31, 2017 |
Year ended March 31, 2018 |
Year ended* March 31, 2017 |
Revenue from Operations (Gross) and Other Income |
35,124.18 |
28,424.92 |
35,057.18 |
28,424.92 |
Profit before Finance Costs, Depreciation and Amortisation Expenses and Tax Expenses |
3,485.77 |
2,788.97 |
3,476.94 |
2,790.80 |
Less: Finance Cost |
1,118.69 |
1,244.25 |
1,113.04 |
1,244.25 |
Less: Depreciation and Amortisation Expenses |
322.30 |
284.04 |
322.30 |
284.04 |
Profit before Exceptional Items and Tax |
2,044.78 |
1,260.68 |
2,041.60 |
1,262.51 |
Profit before Tax |
2,044.78 |
1,260.68 |
2,041.60 |
1,262.51 |
Tax Expenses |
||||
Current Tax (*Net of MAT Credit Entitlement) |
5,47.76 |
286.44 |
546.84 |
286.44 |
-Deferred tax |
49.14 |
37.62 |
49.14 |
37.62 |
Short/(Excess) Provision-Earlier Years (Standalone * Rs.3,739) and (Consolidated * Rs.3,789) |
0.06 |
0.17 |
0.06 |
0.17 |
Profit for the Year |
1,447.82 |
936.45 |
1,445.56 |
938.28 |
Add: Balance brought forward from last yearâs account |
3,573.77 |
2,683.80 |
3,572.12 |
2,680.32 |
Amount available for Appropriations |
5,021.59 |
3,620.25 |
5,017.68 |
3,618.60 |
* Figures for the year ended March 31, 2017 have been re-grouped / re-arranged as per Ind AS.
# Note No. 1:
The Board of Directors of the Company has recommended a dividend of Rs. 1.00/- per Equity share on the
Equity shares of face value of Rs. 2/- each. The dividend, if declared at the ensuing Annual General Meeting, will result in cash outflow of Rs. 94.47 Million (including Dividend Distribution Tax Rs. 16.11 Million).
As per the requirements of revised Ind AS 4, the Company is not required to provide for dividend proposed/ declared after the balance sheet date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for the year ended March 31, 2018.
REVIEW OF BUSINESS OPERATIONS ON STANDALONE BASIS
During the year, your Companyâs turnover increased to Rs.34,964.19 millions as against Rs.28,324.25 millions in FY 2016-17, showing a strong growth of 23.44%. During the year under review, turnover from Cables stood at Rs.18,746.61 millions as compared to Rs.17,409.09 millions in FY 2016-17, showing a growth of 7.68% and Stainless Steel Wire Products contributed a turnover of Rs.1,167.85 millions as compared to Rs.1,128.24 millions in FY 2016-17. Winding Wires, Flexible & House Wires contributed a turnover of Rs.6,023.80 millions as compared to Rs.4,448.84 millions in FY 2016-17, showing a growth of 35.40% and Income from Turnkey Projects also had a great contribution in the total turnover of the Company showing a growth of 71.72 % i.e. from Rs.5,050.30 millions in FY 2016-17 to Rs.8,672.21 millions in FY 2017-18. During the year under review, Profit before Tax stood at Rs.2,041.60 millions as compared to Rs.1,262.51 millions in the preceding year and Net Profit stood at Rs.1,445.56 millions as compared to Rs.938.28 millions in the preceding year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
Company has one Subsidiary âKEI Cables Australia Pty Ltd.â in Australia. Further, Company has a Joint Venture under the name of âJoint Venture of M/s KEI Industries Ltd., New Delhi & M/s Brugg Kabel AG, Switzerlandâ (JV). This JV is a jointly controlled entity within the meaning of Ind AS 111 on âFinancial Reporting of Interests in Joint Venturesâ. This JV is in form of an Association of Persons (AOP) and the Company is having 100% share in Profit/Loss in this AOP. No share capital is invested in the Joint Venture by the respective members of JV.
Further, a separate report on the performance and financial position of the Subsidiary and Joint Venture is included in the Consolidated Financial Statements pursuant to Section 129(3) of the Companies Act, 2013 in AOC-1 and is annexed to financial statements in the Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) 110 - âConsolidated Financial Statementsâ and Indian Accounting Standard (Ind AS) 111 - âFinancial Reporting of interest in Joint Ventureâ specified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
RESERVES
During the year, the Board of Directors of your Company has decided not to transfer any amount to the reserves and decided to retain all the profits under surplus account.
DIVIDEND & APPROPRIATIONS
Your Directors are pleased to recommend a dividend of Rs.1.00/- per Equity share (i.e. @ 50%) on the Equity shares of face value of Rs.2/- each for the Financial Year ended March 31, 2018, subject to the approval of shareholders at the ensuing Annual General Meeting which would result in cash outflow of Rs.94.47 Million (refer note no. 1 above). The dividend if approved by the members at the forthcoming Annual General Meeting will be paid to:
- Those Equity shareholders whose names will appear in the register of members on September 19, 2018 and
- In respect of shares held in dematerialized form, to those shareholders whose names will be furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) as beneficial owners on cut-off date i.e. September 12, 2018.
Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors at its meeting held on May 17, 2018 approved the Dividend Distribution Policy of the Company. The Dividend Distribution Policy is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statements relates and the date of this Report.
CHANGE IN NATURE OF BUSINESS
During the year under review, there was no change in the nature of business of the Company.
RATING BY EXTERNAL RATING AGENCIES
(A) CORPORATE GOVERNANCE RATING BY CARE:
CARE Rating Limited (CARE) has reaffirmed âCGR3 â (Pronounced as CGR three plus) rating assigned to the Corporate Governance practices of the Company.
âThe corporate governance rating of KEI Industries Limited (KEI) continues to reflect the overall compliance with statutory and regulatory requirements, satisfactory Board composition and performance monitoring by the management, clearly identifiable ownership pattern with well-defined organization structure, extensive Management Information Systems (MIS) within the Company and prudent disclosures to shareholders.
The rating continues to factor in the scope for improvement in the level of strategy oversight and performance monitoring by the Boardâ
(B) BANK FACILITIES RATING BY ICRA:
ICRA Limited has upgraded the rating assigned to Long Term Bank Facilities availed by the Company from [ICRA]A- (pronounced ICRA A minus) to [ICRA]A (pronounced ICRA A).
Instruments / Facilities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments / facilities carry low credit risk.
Further, ICRA Limited has upgraded the rating assigned to Short Term Bank Facilities availed by the Company from [ICRA]A2 (pronounced ICRA A two plus) to [ICRA]A1 (pronounced ICRA A One). Instruments / Facilities with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments/facilities carry lowest credit risk.
(C) BANK FACILITIES RATING BY CARE#:
CARE Rating Limited (CARE) had assigned âCARE A-; Positiveâ (Pronounced as Single A Minus; Outlook: Positive) rating to the Long Term Bank facilities availed by the Company. Facilities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such facilities / instruments carry low credit risk.
CARE Rating Limited (CARE) had assigned âCARE A2 â (Pronounced as A Two Plus) rating to the Short Term Bank facilities availed by the Company. Facilities with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such facilities / instruments carry low credit risk.
(D) FIXED DEPOSIT RATING BY ICRA AND CARE#:
ICRA Limited has upgraded the rating assigned to Medium Term Instrument i.e. Fixed Deposits Programme of the Company from MA (pronounced M A) to MA (pronounced MA plus). MA indicate adequate credit quality rating assigned by ICRA. The rated deposits carry average credit risk.
Further, CARE Rating Limited (CARE) had assigned âCARE A- (FD); Positiveâ [Pronounced as Single A Minus (Fixed Deposits); Outlook: Positive]â rating to the Medium Term Instruments i.e. Fixed Deposits Scheme of the Company.
# Review of rating with CARE is under process.
UNPAID / UNCLAIMED DIVIDEND
Pursuant to Rule 5(8) of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time) your Company has uploaded on its website www.kei-ind.com under Investor Relations Section as well as on the Ministryâs website the information regarding Unpaid / Unclaimed Dividend amount lying with the Company as on July 19, 2017 (date of last Annual General Meeting).
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred Rs. 1,29,824/- unclaimed / unpaid dividend in respect of financial year 2009-10 to the Investor Education and Protection Fund (IEPF) established by the Central Government, pursuant to the provisions of Section 124(5) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time).
Further, the total amount lying in the Unpaid Dividend Account(s) of the Company in respect of the last seven years and when such unpaid Dividend is due for transfer to Investor Education Protection Fund is disclosed in a separate section titled Report on Corporate Governance and has been included in this Annual Report.
Further, during the year under review, your Company has transferred 1,69,395 Equity shares into the Demat Account of Investor Education and Protection Fund held with NSDL (DP ID/Client ID IN300708/10656671) and CDSL (DP ID/Client ID 12047200/13676780) pursuant to the provisions of Section 124(6) of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time) i.e., shares on which dividend has not been paid/claimed for seven consecutive years i.e., from FY 2009-10.
Further, the details of shareholders whose dividend and shares are transferred to Investor Education and Protection Fund are updated on the website www.kei-ind.com under Investor Relations Section.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
a) Composition
i) During the year under review, Mr. Sadhu Ram Bansal (holding DIN: 06471984) was appointed as an Additional Director (Non-executive, Independent Director) for a period of 5 (Five) years w.e.f. January 24, 2018 to January 23, 2023 subject to the approval of shareholders at the ensuing AGM.
ii) As on date, Company has 9 Directors with an Executive Chairman. Of the 9 Directors, 3 are Executive Directors and 6 are Non-Executive Directors including one Woman Director and 5 Independent Directors. The Composition of the Board is in conformity with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
iii) None of the Director on the Board is a director in more than 10 Public Companies or a member of more than 10 Committees or a Chairman of more than 5 Committees across all listed companies in which he/ she is a Director. Necessary disclosures regarding Committee positions in other Public Limited Companies as on March 31, 2018 have been disclosed by all the Directors of the Company.
iv) None of the Whole-time Key Managerial Personnel (KMP) of the Company is holding office in any other Company as a Key Managerial Personnel.
v) Further, none of the Directors / KMP of the Company is disqualified under any of the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
b) Change in Director(s) and Key Managerial Personnel
i) As per Section 152 of the Companies Act, 2013 and other applicable provisions of the Act, Mrs. Archana Gupta (holding DIN: 00006459), Director of the Company, who retires by rotation at the ensuing Annual General Meeting and being eligible offers herself for re-appointment.
ii) Further, based on the recommendation of the Nomination and Remuneration Committee and the Board of Directors of the Company in its meeting held on January 24, 2018 has appointed Mr. Sadhu Ram Bansal (holding DIN: 06471984) as an Additional Director (Non-executive, Independent Director) for a period of 5 (Five) years w.e.f. January 24, 2018 to January 23, 2023 subject to approval of shareholders at the ensuing AGM, in accordance with the provisions of Section 149, 152 and 161 of the Companies Act, 2013 read with Schedule IV and Rules made thereunder and other applicable provisions of the Companies Act, 2013, if any.
iii) Further, based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at their Meeting held on May 17, 2018 has re-appointed Mr. Anil Gupta (holding DIN: 00006422) as Chairman-cum-Managing Director of the Company for a further term of 3 (Three) years w.e.f. July 1, 2018 to June 30, 2021 in accordance with the provisions of Section 196 and 197 of the Companies Act, 2013 read with Schedule V and Rules made thereunder and other applicable provisions of the Companies Act, 2013, if any. His re-appointment requires the approval of the shareholders at the ensuing Annual General Meeting.
The details of Directors being recommended for appointment / re-appointment as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is contained in the accompanying Notice convening ensuing Annual General Meeting of the Company. Appropriate Resolution(s) seeking shareholderâs approval are also included in the Notice.
c) Declaration by Independent Directors
All the Independent Directors of the Company have given their declaration for the FY 2017-18 that they continue to meet all the criteria as specified under Section 149(6) & (7) of the Companies Act, 2013 and under Regulation 16(1 )(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of their position as an âIndependent Directorâ in the Company.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 7 (Seven) times during the financial year from April 1, 2017 to March 31, 2018 on May 10, 2017, May 20, 2017, May 27, 2017, July 19, 2017, August 29, 2017, November 13, 2017 and January 24, 2018.
Further, during the year, a separate meeting of the Independent Directors of the Company was also held on March 23, 2018 to discuss and review the performance of all other Non-Independent Directors, Chairperson of the Company and the Board as a whole and for reviewing and assessing the matters as prescribed under Schedule IV of the Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
CHANGE IN CAPITAL STRUCTURE
During the year, Share Allotment Committee of the Board has issued and allotted 5,64,000 Equity shares of face value of Rs.2/- each to eligible employees under KEI Employees Stock Option Scheme 2015. Accordingly, the paid-up share capital of the Company has increased from 77,797,438 Equity shares of face value of Rs.2/- each to 78,361,438 Equity shares of face value of Rs.2/- each.
FORMAL ANNUAL EVALUATION
As the ultimate responsibility for sound governance and prudential management of a Company lies with its Board, it is imperative that the Board remains continually proactive and effective. An important way to achieve this objective is through an annual evaluation of the performance of the Board, its Committees and all the individual Directors.
The Companies Act, 2013 not only mandates Board and Directors evaluation, but also requires the evaluation to be formal, regularized and transparent. SEBI has also notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulations 2015â) on 2nd September, 2015, whereby it has aligned the present Listing Agreement with the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at its meeting held on May 17, 2018 undertook an annual evaluation of the performance of the Board, its Committees and all the individual Directors.
Directors were evaluated on aspects such as attendance, contribution at Board/Committee meetings and guidance/support to the management outside Board/Committee meetings. The Committees of the Board were assessed on the degree of fulfillment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.
The performance evaluation of the Independent Directors was carried out by the whole Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board, its Committees and the Directors.
It was further acknowledged that every individual Member and Committee of the Board contribute its best in the overall growth of the organization.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 in respect of Directorsâ Responsibility Statement, the Directors to the best of their knowledge hereby state and confirm that:
a) in the preparation of the annual accounts, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;
b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the Profit and Loss of the Company for that period.
c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and detecting fraud and other irregularities;
d) the directors had prepared the annual accounts on a going concern basis;
e) the directors had laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and were operating effectively; and
f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
NOMINATION AND REMUNERATION POLICY
The Company has framed a Nomination and Remuneration Policy pursuant to Section 178 of the Companies Act, 2013 and Regulation 19(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Specified in Part D of the Schedule II).
The detailed Nomination & Remuneration Policy is annexed as Annexure A and forms part of this Report and is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 134(3)(a) of the Companies Act, 2013, the extract of the Annual Return in Form MGT-9 as per the provisions of Section 92 of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is annexed herewith as Annexure B and forms part of this Report and is also available on the website of the Company at www.kei-ind.com under Investor Relations Section.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defined Enterprise-wide Risk Management (ERM) framework in place for identifying risks and opportunities that may have a bearing on the organizationâs objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy. The primary objective of ERM function is to implement a framework that augments risk response decisions and reduce surprises. ERM programme involves risk identification, assessment and risk mitigation planning for strategic, operational, financial and compliance related risks across various levels of the organization.
The Companyâs internal control systems are commensurate with the nature of its business and the size and complexity of operations. These systems are routinely tested by Statutory as well as Internal Auditors and cover all offices, factories and key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee.
FIXED DEPOSITS
As on March 31, 2018 fixed deposit aggregating to Rs.78.16 millions are outstanding. There are no fixed deposits remaining unpaid or unclaimed as at the end of the year.
LISTING OF SHARES
The shares of the Company are listed at National Stock Exchange of India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange Limited (CSE). The Company has also paid its up-to-date listing fees to all the stock exchanges.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANYâS OPERATIONS IN FUTURE
During the year, there was no significant and material order passed by any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate system of internal control commensurate with its size and nature of business. This system provides a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Board has appointed M/s Jagdish Chand & Co., Chartered Accountants as Internal Auditors of the Company for the financial year 2018-19 and its audit reports are submitted directly to the Audit Committee of Board which reviews and approves performance of internal audit function and ensures the necessary checks and balances that may need to be built into the control system.
HUMAN RESOURCES
Companyâs industrial relations continued to be harmonious during the period under review.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the financial year, the Company has not entered into any materially significant related party contracts/ arrangements or transactions with the Companyâs promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. All the contracts/arrangements or transactions entered into by the Company with Related party(ies) are in conformity with the provisions of the Companies Act, 2013 and on an armâs length basis and do not attract the provisions of Section 188 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable. The Company presents a statement of all related party contracts / arrangements or transactions entered into by the Company before the Audit Committee for its consideration and review on quarterly basis.
Further, the Policy on materiality of Related Party Transactions as formed and approved by the Audit Committee and the Board of Directors as per Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the website of the Company at www.kei-ind.com under Investor Relations Section. POLICY ON MATERIAL SUBSIDIARY The Company has framed a Policy on Material Subsidiary under Regulations 16(1)(c) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
AUDIT COMMITTEE
Pursuant to the provisions of Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the composition of the Audit Committee is as under:
Sl. No. |
Name of the Director |
Category |
Profession |
1. |
Mr. Pawan Bholusaria |
Independent Director (Chairman) |
Chartered Accountant |
2. |
Mr. Kishan Gopal Somani |
Independent Director (Member) |
Chartered Accountant |
3. |
Mr. Vikram Bhartia |
Independent Director (Member) |
Business |
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the Company acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee during the Financial Year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company has established a Vigil Mechanism/ Whistle Blower Mechanism and oversees through the Audit Committee, the genuine concerns expressed by the Employees and Directors of the Company. The Company has also provided adequate safeguards against victimization of Employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of co-employees and the Company. During the year under review, no personnel has been denied access to the Audit Committee.
Further, the Vigil Mechanism/ Whistle Blower Policy have been uploaded on the website of the Company at www.kei-ind.com under Investor Relations Section.
SHARES
a. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of its securities.
b. SWEAT EQUITY
During the year under review, the Company has not issued any Sweat Equity Shares.
c. BONUS SHARES
During the year under review, no Bonus Shares were issued by the Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year, Share Allotment Committee of the Board has allotted 5,64,000 Equity Shares of face value Rs.2/- each to eligible employees of the Company at an exercise price of Rs.35/- per share pursuant to KEI Employee Stock Option Scheme, 2015.
AUDITORS
a) Statutory Auditors:
M/s. PAWAN SHUBHAM & CO., Chartered Accountants (Firm Registration Number 011573C) were appointed as Statutory Auditors of the Company at the Annual General Meeting (AGM) held on July 19, 2017 for a term of five consecutive years i.e., from the conclusion of 25th AGM till the conclusion of 30th AGM of the Company to be held in the year 2022 subject to ratification of their appointment at every AGM pursuant to Section 139 of the Companies Act, 2013.
M/s. PAWAN SHUBHAM & CO., Chartered Accountants (Firm Registration number 011573C) are recommended for re-appointment based on consent and certificate furnished by them in terms of provisions of Section 141 of the Companies Act, 2013 and Rule 4 of the Companies (Audit and Auditors) Rules, 2014 and other applicable provisions of the Companies Act, 2013 (including any statutory modification(s), amendment(s) or re-enactment(s) thereof for the time being in force and as may be enacted from time to time).
The ratification of re-appointment of Statutory Auditors at AGM, pursuant to Section 139 of Companies Amendment Act, 2017 vide Notification No. S.O.188 (E) dated May 07, 2018 issued by Ministry of Corporate Affairs, is not required. Accordingly, the item has not been included in the Ordinary Business of the AGM Notice.
Statutory Auditorâs Report
The observations / comments of Statutory Auditors in their Auditorâs Report are self explanatory and therefore do not call for any further clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. S. Chander & Associates, Cost Accountants (Membership No.: 9455) as Cost Auditor of the Company to conduct audit of Cost Records maintained by the Company for the Financial Year 2018-19 in accordance with Section 148 and the Companies (Cost Records and Audit) Rules, 2014 after obtaining his consent and certificate under Section 139, 141 and 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 where they have confirmed their consent and eligibility to act as Cost Auditors of the Company.
Your Company has maintained cost records and account as specified by the Central Government under sub-section (1) of Section 148 of the Company Act, 2013.
Further, the Cost Audit Report for the FY 2016-17 was filed on September 26, 2017.
c) Secretarial Auditors
The Board of Directors has appointed S.K. Batra & Associates, Practicing Company Secretary (Membership No. FCS-7714 & CP No. 8072), as Secretarial Auditors of the Company pursuant to the provisions of Section 204 of the Companies Act, 2013 read with corresponding Rules made thereunder for conducting Secretarial Audit of the Company for the financial year 2018-19. Secretarial Audit Report
The Secretarial Audit Report for the FY 2017-18 as submitted by Secretarial Auditors in Form MR-3 is annexed to this Report as Annexure - C and form part of this report.
There are no qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report.
CORPORATE SOCIAL RESPONSIBILITY
The Company has framed a Policy on Corporate Social Responsibility pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 which is available on the website of the Company at www.kei-ind.com under Investor Relations Section.
The Annual Report on Companyâs CSR activities of the Company as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure-D and forms part of this report. LOAN(S), GUARANTEE(S) OR INVESTMENT(S) During the year, your Company has duly complied with the provisions of Section 186 of the Companies Act, 2013 and no loan was granted by the Company under Section 186 of the Companies Act, 2013. The particulars of Corporate Guarantees provided and Investment made by the Company during the year are as follows:
Sl. No. |
Particulars of Corporate Guarantees and Investment made u/s 186 of the Companies Act, 2013 |
Amount (Rs. in Millions) |
1. |
Loan of AUD 20000 given to Subsidiary namely âKEI Cables Australia Pty Ltdâ. |
0.95 |
2. |
Investment of AUD 80 in Share Capital of Subsidiary namely âKEI Cables Australia Pty Ltdâ. |
0.00* |
3. |
First Loss Default Guarantee in favour of Yes Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
250.00 |
Total |
250.95 |
* Rs.3,988
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment free workplace for every individual working in the Company. Your Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
In accordance with âThe Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013â and in order to provide for the effective enforcement of the basic human right of gender equality and guarantee against sexual harassment and abuse, more particularly against sexual harassment at work places, your Company has constituted an Internal Complaint Committee and adopted a policy on Prevention of Sexual Harassment at Workplace. The policy aims to provide the effective enforcement of basic human right of gender equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal Complaint Committee, formed under âThe Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013â.
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:
The information required under Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign Exchange Earnings and Outgo as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure F and forms part of this Report.
CORPORATE GOVERNANCE
Your Directors are pleased to report that your Company strives to ensure that best corporate governance practices are identified, adopted and consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholderâs value.
Pursuant toRegulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate Section titled Report on Corporate Governance has been included in this Annual Report and the certificate of M/s Pawan Shubham & Co., Chartered Accountants, the statutory auditors of the Company certifying compliance with the conditions of corporate governance as stipulated under relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is obtained and annexed with the report on Corporate Governance.
MANAGEMENTâS DISCUSSION AND ANALYSIS REPORT
Managementâs Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section and forms part of this Annual Report.
BUSINESS RESPONSIBILTY REPORT
In terms of Regulation 34(2)(f) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, information on the initiatives taken by the Company from an environmental, social and governance perspective is provided in the Business Responsibility Report which forms part of this Annual Report.
APPRECIATIONS
Your Directors place on record their sincere appreciation for significant contribution made by employees of the Company at each level, through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued co-operation and support extended to the Company by various Banks, Stock Exchanges, NSDL and CDSL. The Board wishes to express its grateful appreciation for the assistance and co-operation received from Vendors, Customers Consultants, Banks, Financial Institutions, Central and State Government bodies, Dealers, and other Business Associates. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and, above all, the shareholders.
FOR AND ON BEHALF OF THE BOARD
(ANIL GUPTA)
Chairman-cum-Managing Director
DIN:00006422
Date: August 09, 2018
Place: New Delhi
Mar 31, 2017
Your Directors have pleasure in presenting their 25th Annual Report, together with the Audited Annual Standalone and Consolidated Financial Statements of the Company for the year ended March 31, 2017.
FINANCIAL SUMMARY
The Companyâs financial performance for the year ended March 31, 2017 along with previous yearâs figures are summarized below:
(Rs. in Millions)
Particulars |
Consolidated |
Standalone |
||
Year ended March 31, 2017 |
Year ended March 31, 2016 |
Year ended March 31, 2017 |
Year ended March 31, 2016 |
|
Revenue from Operations (Gross) and Other Income |
28471.30 |
25,261.97 |
28,456.09 |
25,033.63 |
Profit before Finance Costs, Depreciation and Amortization Expenses and Tax Expenses |
2,845.43 |
2,483.35 |
2,847.42 |
2,476.04 |
Less: Finance Cost |
1,229.32 |
1,271.56 |
1,229.25 |
1,269.74 |
Less: Depreciation and Amortization Expenses |
280.44 |
253.30 |
280.44 |
252.86 |
Profit before Exceptional Items and Tax |
1,335.67 |
958.49 |
1,337.73 |
953.44 |
Profit before Tax |
1,335.67 |
958.49 |
1,337.73 |
953.44 |
Tax Expenses |
|
|
|
|
-Current Tax (*Net of MAT Credit Entitlement) |
286.44* |
205.91* |
286.44* |
204.34* |
- Deferred Tax |
64.77 |
127.08 |
64.77 |
127.08 |
Short/(Excess) Provision-Earlier Years (Standalone * Rs. 3,739) and (Consolidated * Rs. 3,789) |
1.44 |
0.00* |
0.17* |
0.00* |
Profit for the Year |
983.02 |
625.50 |
986.35 |
622.02 |
Add: Balance brought forward from last year''s account |
2,707.58 |
2,128.56 |
2,704.10 |
2,128.56 |
Amount available for Appropriations |
3,690.60 |
2,754.06 |
3,690.45 |
2,750.58 |
Appropriations#: |
|
|
|
|
Proposed Dividend on Equity Shares |
- |
38.62 |
- |
38.62 |
Dividend Distribution Tax on Proposed Dividend |
- |
7.86 |
- |
7.86 |
# Note No. 1:
The Board of Directors of the Company has recommended a dividend of Rs.0.60/- per equity share on the Equity shares of face value of Rs.2/- each. The dividend, if declared at the ensuing Annual General Meeting, will result in cash outflow of Rs.46.68 Millions.
During the previous year, the Company had made a provision for the dividend declared by the Board of Directors as per the requirements of prerevised Accounting Standard 4 - ''Contingencies and Events'' occurring after the Balance sheet date (AS4). However, as per the requirements of revised AS 4, the Company is not required to provide for dividend proposed/ declared after the balance sheet date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for the year ended March 31, 2017. Had the Company continued with the creation of provision of proposed dividend, as at the balance sheet date, its balance in Surplus would have been lower by Rs.56.18 Millions and Short Term Provision would have been higher by Rs.56.18 Millions (including dividend distribution tax Rs.9.50 Millions).
REVIEW OF BUSINESS OPERATIONS ON STANDALONE BASIS
During the year, your Company''s turnover increased to Rs.28,352.03 millions as against IE 24,980.15 millions in FY 2015-16 showing a strong growth of 13.50%. During the year under review, turnover from Cables stood at Rs.17383.12 millions as compared to Rs.15203.48 millions in FY 2015-16, showing a growth of 14.34% and Stainless Steel Wire Products contributed a turnover of Rs.1,123.79 millions as compared to T 1,003.76 millions in FY 2015-16. Winding Wires, Flexible & House Wires contributed a turnover of Rs.4,511.46 millions as compared to Rs.4,058.23 millions in FY 2015-16, showing a growth of 11.17% and Income from Turnkey Projects also had a great contribution in the total turnover of the Company showing a growth of 11.35% i.e. from Rs.4,535.37 millions in FY 2015-16 to Rs.5,050.30 millions in FY 2016-17. During the year under review, Profit before Tax stood at Rs.1,337.73 millions as compared to T 953.44 millions in the preceding year and Net Profit stood at T 986.35 millions as compared to Rs.622.02 millions in the preceding year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
Company has one wholly owned subsidiary "KEI Cables Australia Pty Ltd" in Australia. Further, Company has one Joint Venture under the name of "Joint Venture of M/s KEI Industries Ltd., New Delhi & M/s Brugg Kabel AG, Switzerland" (JV). This JV is a jointly controlled entity within the meaning of Accounting Standard - 27 on Financial Reporting of Interests in Joint Ventures. This JV is in form of an Association of Persons (AOP) and the Company is having 100% share in Profit/Loss in this AOP. No share capital is invested in the Joint Venture by the respective members of JV.
Further, a separate report on the performance and financial position of the subsidiary and Joint Venture is included in the consolidated financial statements pursuant to Section 129(3) of the Companies Act, 2013 in AOC-1 and is annexed to financial statements in the Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements are in accordance with the Companies Act, 2013, relevant Regulation of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Accounting Standard-21 on Consolidated Financial Statements (AS-21) and form part of the Annual Report.
RESERVES
During the year, the Board of Directors of your Company has decided not to transfer any amount to the reserves and decided to retain all the profits under surplus account.
DIVIDEND & APPROPRIATIONS
Your Directors are pleased to recommend a dividend of Rs.0.60/- per equity share (i.e. @ 30%) on the Equity Shares of face value of Rs.2/- each for the Financial Year ended March 31, 2017, subject to the approval of shareholders at the ensuing Annual General Meeting which would result in cash outflow of Rs.46.68 Million (refer note no. 1 above). The dividend if approved by the members at the forthcoming Annual General Meeting will be paid to:
- Those equity shareholders whose names will appear in the register of members on July 19, 2017 and
- In respect of shares held in dematerialized form, to those shareholders whose names will be furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) as beneficial owners on cut-off date i.e. July 12, 2017.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relates and the date of this Report.
CHANGE IN NATURE OF BUSINESS
During the year under review, there was no change in the nature of business of the Company.
RATING BY EXTERNAL RATING AGENCIES
(A) CORPORATE GOVERNANCE RATING BY CARE:
Credit Analysis & Research Limited (CARE) has upgraded/revised the rating assigned to the Corporate Governance practices of the Company to "CGR3 " (CGR three plus) from "CGR 3" (CGR three) vide its letter dated April 03, 2017.
"The corporate governance rating of KEI Industries Limited (KEI) factors in the extensive Management Information Systems (MIS) and enterprise-wide risk management (ERM) framework put in place by the Company, thereby improving operational oversight and strengthening the overall risk management function of the Company. The rating continues to factor in the robust corporate governance practices being followed by the Company including qualified and experienced Board of Directors, satisfactory functioning of various committees of the Board and clearly identifiable ownership pattern with well defined organization structure, overall compliances by the Company with statutory and regulatory requirements, adequate performance monitoring by the management, prudent disclosures to shareholders and improving credit risk profile of KEI.
The rating continues to factor in the scope for improvement in the level of strategic oversight and performance monitoring by the Board."
(B) BANK FACILITIES RATING BY ICRA:
During the year, ICRA Limited has assigned [ICRA] A- (pronounced ICRA A minus) rating to the Long Term Bank Facilities availed by the Company. This rating is applicable to facilities having tenure of more than one year. Facilities / Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such facilities / instruments carry low credit risk.
Further, ICRA Limited has assigned [ICRA] A2 (pronounced ICRA A two plus) rating to the Short Term Bank Facilities availed by the Company. This rating is applicable to facilities having tenure up to one year. Facilities / Instruments with this rating are considered to have strong degree of safety regarding timely payment / servicing of financial obligations. Such facilities / instruments carry low credit risk.
(C) BANK FACILITIES RATING BY CARE:
During the year, Credit Analysis & Research Limited (CARE) has upgraded/revised the rating assigned to the Long Term Bank facilities availed by the Company from ''CARE BBB (Triple B Plus)'' to ''CARE A- (Single A Minus)''. Facilities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such facilities / instruments carry low credit risk.
Credit Analysis & Research Limited (CARE) has also upgraded/revised the rating assigned to the Short Term Bank facilities availed by the Company from ''CARE A3 (A Three Plus)'' to ''CARE A2 (A Two Plus). Facilities with this rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such facilities / instruments carry low credit risk.
(D) FIXED DEPOSIT RATING BY CARE:
ICRA Limited has assigned [ICRA] MA (pronounced as ICRA MA) for the Fixed Deposit Scheme of the Company and Credit Analysis & Research Ltd (CARE) has upgraded / revised the rating assigned to the Medium Term Instrument i.e. Fixed Deposits Scheme of the Company to "CARE A- (FD)" [Single A Minus (Fixed Deposit)] from ''CARE BBB (FD)'' [Triple B Plus (Fixed Deposit)].
UNPAID / UNCLAIMED DIVIDEND
Pursuant to the circular issued by Ministry of Corporate Affairs (MCA) with respect to Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with the Companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your Company has uploaded on its website www.kei-ind.com under Investor Relation Section as well as on the Ministry''s website the information regarding Unpaid / Unclaimed Dividend amount lying with the Company as on 6th September, 2016 (date of last Annual General Meeting).
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred unclaimed / unpaid dividend in respect of financial year 2008-09 to the Investor Education and Protection Fund (IEPF) established by the Central Government, pursuant to the provisions of Section 125 of the Companies Act, 2013.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
a) Composition
i) During the year under review, no change has occurred in the total strength of Board of Directors of the Company. However, the Board of Directors of the Company at its meeting held on May 10, 2017, has appointed Mr. Akshit Diviaj Gupta as an Additional Director and also appointed him as a Whole Time Director of the Company for a term of 5 (Five) years w.e.f. May 10, 2017 to May 09, 2022, subject to approval of shareholders at the ensuing AGM. As on date, Company has 8 Directors with an Executive Chairman. Of the 8 Directors, 3 are Executive Directors and 5 are Non-Executive Directors including one Woman Director and 4 Independent Directors. The Composition of the Board is in conformity with the provisions of the Companies Act, 2013 and relevant regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
ii) None of the Director on the Board is a director in more than 10 Public Companies or a member of more than 10 Committees or a Chairman of more than 5 Committees across all listed companies in which he/ she is a Director. Necessary disclosures regarding Committee positions in other Public Limited Companies as on 31st March, 2017 have been made by all the Directors of the Company.
iii) None of the Whole-time Key Managerial Personnel (KMP) of the Company is holding office in any other Company as a Key Managerial Personnel.
iv) Further, none of the Directors / KMP of the Company is disqualified under any of the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
b) Change in Director(s) and Key Managerial Personnel
a. As per Section 152 of the Companies Act, 2013 and other applicable provisions of the Act, Mr. Rajeev Gupta (holding DIN: 00128865), Director of the Company, who retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.
b. Further, based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at its meeting held on 10th May, 2017 has appointed Mr. Akshit Diviaj Gupta (DIN:07814690) as an Additional Director and also appointed him as a Whole Time Director of the Company for a term of 5 (Five) years w.e.f. 10th May, 2017 to 9th May, 2022, subject to approval of shareholders at the ensuing AGM, in accordance with the provisions of Section 161, 196 and 197 of the Companies Act, 2013 read with Schedule V and rules made there under and other applicable provisions of the Companies Act, 2013, if any.
The details of Directors being recommended for re-appointment as required Under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is contained in the accompanying Notice convening ensuing Annual General Meeting of the Company. Appropriate Resolution(s) seeking shareholders'' approval are also included in the Notice.
c) Declaration by Independent Directors
All the Independent Directors of the Company have given their declaration for the FY 2016-17 that they continue to meet all the criteria as specified under Section 149(6) & (7) of the Companies Act, 2013 and under Regulation 16(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of their position as an "Independent Director" in the Company.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 5 (Five) times during the financial year from 1st April, 2016 to 31st March, 2017 on May 21, 2016, July 20, 2016, September 22, 2016 November 05, 2016 and February 02, 2017.
Further, during the year, a separate meeting of the Independent Directors of the Company was also held on 29th March, 2017 to discuss and review the performance of all other Non- Independent Directors, Chairperson of the Company and the Board as a whole and for reviewing and assessing the matters as prescribed under Schedule IV of the Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
CHANGE IN CAPITAL STRUCTURE
During the year, Share Allotment Committee of the Board has issued and allotted 5,60,000 equity shares of face value of Rs.2/- each to eligible employees under KEI Employees Stock Option Scheme 2015. Accordingly, the paid-up share capital of the Company has increased from 77,237,438 equity shares of face value of Rs.2/- each to 77,797,438 equity shares of face value of Rs.2/- each.
FORMAL ANNUAL EVALUATION
As the ultimate responsibility for sound governance and prudential management of a Company lies with its Board, it is imperative that the Board remains continually proactive and effective. An important way to achieve this is through an objective stock taking by the Board of its own performance.
The Companies Act, 2013 not only mandates Board and Directors evaluation, but also requires the evaluation to be formal, regularized and transparent. SEBI has also notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (''Listing Regulations 2015'') on 2nd September, 2015, whereby it has align the present Listing Agreement with the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013 and relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of the Company at its meeting held on 10th May 2017 undertook an annual evaluation of its own performance, its Committees and all the individual Directors.
Directors were evaluated on aspects such as attendance, contribution at Board/Committee meetings and guidance/support to the management outside Board/Committee meetings. The Committees of the Board were assessed on the degree of fulfillment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.
The performance evaluation of the Independent Directors was carried out by the whole Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the Independent Directors who also reviewed the performance of the Board, its Committees and the Directors.
It was further acknowledged that every individual Member and Committee of the Board contribute its best in the overall growth of the organization.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 in respect of Directors'' Responsibility Statement, the Directors to the best of their knowledge hereby state and confirm that:
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis;
(e) the directors had laid down internal financial controls to be followed by the company and such internal financial controls are adequate and were operating effectively; and
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
NOMINATION AND REMUNERATION POLICY
The Company has framed a Nomination and Remuneration Policy pursuant to Section 178 of the Companies Act, 2013 and Regulation 19(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Specified in Part D of the Schedule II).
The detailed Nomination & Remuneration Policy is annexed as Annexure A and forms part of this Report and is also available on the website of the Company at www.kei-ind.comhttp://www.kei-ind.com/ under Investor Relations Section.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 134(3)(a) of the Companies Act, 2013, the extract of the Annual Return in Form MGT-9 as per the provisions of Section 92 of the Companies Act, 2013 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is annexed herewith as Annexure B and forms part of this Report.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defined Enterprise-wide Risk Management (ERM) framework in place for identifying risks and opportunities that may have a bearing on the organization''s objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy. The primary objective of ERM function is to implement a framework that augments risk response decisions and reduce surprises. ERM programme involves risk identification, assessment and risk mitigation planning for strategic, operational, financial and compliance related risks across various levels of the organization.
The Company''s internal control systems are commensurate with the nature of its business and the size and complexity of operations. These systems are routinely tested by Statutory as well as Internal Auditors and cover all offices, factories and key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee.
FIXED DEPOSITS
As on 31st March, 2017 fixed deposit aggregating to ? 62.01 millions are outstanding. There are no fixed deposits remaining unpaid or unclaimed as at the end of the year.
LISTING OF SHARES
The shares of the Company are listed at National Stock Exchange of India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange Limited (CSE). The Company has also paid its up-to-date listing fees to all the stock exchanges.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
During the year, there was no significant and material order passed by any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate system of internal control commensurate with its size and nature of business. This system provide a reasonable assurance in respect of providing financial and operational information, complying with applicable statutes, safeguarding of assets of the Company and ensuring compliance with corporate policies. The Board has appointed M/s Pawan Shubham & Co. Chartered Accountants as Internal Auditors of the Company for the financial year 2016-17 and its audit reports are submitted directly to the Audit Committee of Board which reviews and approves performance of internal audit function and ensures the necessary checks and balances that may need to be built into the control system.
HUMAN RESOURCES
Company''s industrial relations continued to be harmonious during the period under review.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the financial year, the Company has not entered into any materially significant related party contracts/ arrangements or transactions with the Company''s promoters, Directors, management or their relatives, which could have had a potential conflict with the interests of the Company. All the contracts/arrangements or transactions entered into by the Company with Related party(ies) are in conformity with the provisions of the Companies Act, 2013 and on an arm''s length basis and do not attract the provisions of Section 188 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Accordingly, the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable. The Company presents a statement of all related party contracts / arrangements or transactions entered into by the Company before the Audit Committee for its consideration and review on quarterly basis.
Further, the Policy on materiality of Related Party Transactions as formed and approved by the Audit Committee and the Board of Directors as per Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is available on the website of the Company at www.kei-ind.comhttp://www.kei-ind.com/ under Investor Relations Section.
POLICY ON MATERIAL SUBSIDIARY The Company has framed a Policy on Material Subsidiary under Regulations 16(c) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 which is available on the website of the Company at www.kei-ind.comhttp://www.kei-ind.com/ under Investor Relations Section.
AUDIT COMMITTEE
Pursuant to the provisions of Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 18 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the composition of the Audit Committee is as under:
Sl. No. |
Name of the Director |
Category |
Profession |
1. |
Mr. Pawan Bholusaria |
Independent Director (Chairman) |
Chartered Accountant |
2. |
Mr. Kishan Gopal Somani |
Independent Director (Member) |
Chartered Accountant |
3. |
Mr. Vikram Bhartia |
Independent Director (Member) |
Business |
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the Company acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee during the Financial Year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, the Company has established a Vigil Mechanism/ Whistle Blower Mechanism and overseas through the Audit Committee, the genuine concerns expressed by the employees and Directors of the Company. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of co-employees and the Company. During the year under review, no personnel has been denied access to the Audit Committee.
Further, the Vigil Mechanism/ Whistle Blower Policy have been uploaded on the website of the Company at www.kei-ind.comhttp://www.kei-ind.com/ under Investor Relations Section.
SHARES
a. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of its securities.
b. SWEAT EQUITY
During the year under review, the Company has not issued any Sweat Equity Shares.
c. BONUS SHARES
During the year under review, no Bonus Shares were issued by the Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year, Share Allotment Committee of the Board has allotted 5,60,000 Equity Shares of face value Rs.2/- each to eligible employees of the Company at an Exercise Price of Rs.35/- per share, out of 22,52,000 Options granted under KEI Employee Stock Option Scheme 2015.
AUDITORS
a) Statutory Auditors:
M/s. PAWAN SHUBHAM & CO., Chartered Accountants (Firm Registration number 011573C) are recommended for appointment based on consent and certificate furnished by them under Section 139 and 141 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 for a period of five years from the conclusion of the ensuing Annual General Meeting to be held in 2017 till the conclusion of 30th AGM of the Company to be held in the year 2022 (subject to ratification of their appointment at every AGM), in place of M/s. JAGDISH CHAND & CO., Chartered Accountants (Firm Registration number 000129N) who will vacate their office at the conclusion of the 25th Annual General Meeting of the Company pursuant to Section 139 of the Companies Act, 2013.
Statutory Auditors'' Report
The observations / comments of Statutory Auditors in their Auditor''s Report are self explanatory and therefore do not call for any further clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. S. Chander & Associates, Cost Accountants (Membership No.: M/9455) as Cost Auditor of the Company to conduct audit of Cost Records maintained by the Company for the financial year 2017-18 in accordance with Section 148 and the Companies (Cost Records and Audit) Rules, 2014 after obtaining his consent and certificate under Section 139, 141 and 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 where they have confirmed their consent and eligibility to act as Cost Auditors of the Company.
Further, the Cost Audit Report for the FY 2015-16 was filed on October 20, 2016.
c) Secretarial Auditors
The Board of Directors has re-appointed Mr. Baldev Singh Kashtwal, Practicing Company Secretary (Membership No. FCS-3616 & CP No. 3169), Partner, M/s. RSM & Co., Company Secretaries as Secretarial Auditors of the Company pursuant to the provisions of Section 204 of the Companies Act, 2013 read with corresponding rules made there under for conducting Secretarial Audit of the Company for the financial year 2017-18.
Secretarial Audit Report
The Secretarial Audit Report for the FY 2016-17 as submitted by Secretarial Auditors in Form MR-3 is annexed to this Report as Annexure - C.
There are no qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report.
CORPORATE SOCIAL RESPONSIBILITY
The Company has framed a Policy on Corporate Social Responsibility pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 which is available on the website of the Company at www.kei-ind.comhttp://www.kei-ind.com/ under Investor Relations Section.
The Annual Report on Company''s CSR activities of the Company as per the Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed as Annexure-D and forms part of this report.
LOAN(S), GUARANTEE(S) OR INVESTMENT(S)
During the year, your Company has duly complied with the provisions of Section 186 of the Companies Act, 2013 and no loan was granted by the Company under Section 186 of the Companies Act, 2013. The particulars of Corporate Guarantees provided and Investment made by the Company during the year are as follows:
Sl. No. |
Particulars of Corporate guarantees and Investment made u/s 186 of the Companies Act, 2013 |
Amount (Rs. in Millions) |
1 |
Corporate Guarantee in favour of Axis Bank Ltd. against Dealer Financing Facility / Channel Financing Facility provided to the Dealers of the Company for a further period of one year. |
350.00 |
2 |
Renewal of First Loss Default Guarantee in favour of IDBI Bank Limited against Channel Financing Facility provided to the Dealers of the Company. |
150.00 |
3 |
Loan of AUD 6000 given to Wholly Owned Subsidiary (WOS) "KEI Cables Australia Pty Ltd." |
0.30 |
|
Total |
500.30 |
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment free workplace for every individual working in the Company. Your Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.
In accordance with "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013" and in order to provide for the effective enforcement of the basic human right of gender equality and guarantee against sexual harassment and abuse, more particularly against sexual harassment at work places, your Company has constituted an Internal Complaint Committee and adopted a policy on Prevention of Sexual Harassment at Workplace. The policy aims to provide the effective enforcement of basic human right of gender equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal Complaint Committee, formed under "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013".
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:
The information required under Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign Exchange Earnings and Outgo as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure F and forms part of this Report.
CORPORATE GOVERNANCE
Your Directors are pleased to report that your Company strives to ensure that best corporate governance practices are identified, adopted and consistently followed. Your Company believes that good governance is the basis for sustainable growth of the business and for enhancement of stakeholder''s value.
Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate Section titled Report on Corporate Governance has been included in this Annual Report and the certificate of M/s Jagdish Chand & Co., Chartered Accountants, the statutory auditors of the Company certifying compliance with the conditions of corporate governance as stipulated under relevant Regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is obtained and annexed with the report on Corporate Governance.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is presented in a separate section and forms part of this Annual Report.
APPRECIATIONS
Your Directors place on record their sincere appreciation for significant contribution made by employees of the Company at each level, through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued co-operation and support extended to the Company by various Banks, Stock Exchanges, NSDL and CDSL. The Board wishes to express its grateful appreciation for the assistance and co-operation received from Vendors, Customers Consultants, Banks, Financial Institutions, Central and State Government bodies, Dealers, and other Business Associates. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and, above all, the shareholders.
FOR AND ON BEHALF OF THE BOARD
(ANIL GUPTA)
Chairman-cum-Managing Director
DIN:00006422
Place: New Delhi
Date: May 27, 2017
Mar 31, 2016
The Directors have pleasure in presenting their 24th Annual Report,
together with the Audited Annual Standalone and Consolidated Financial
Statements of the Company for the year ended March 31, 2016.
FINANCIAL SUMMARY
The Company''s financial performance for the year ended March 31, 2016
along with previous year''s figures are summarized below:
(Rs, in Millions)
Consolidated Standalone
Particulars
Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31,
2016 2015 2016 2015
Revenue from
Operations
(Gross) 25,261.97 21,744.73 25,033.63 21,733.05
and Other
Income
Profit before
Finance Costs,
Depreciation 2,476.04
and Amortization
Expenses and Tax 2,483.35 1,960.86 1,952.54
Expenses
Less: Finance
Cost 1,271.56 1,212.33 1,269.74 1,203.98
Less:
Depreciation
and Amortization 252.86
253.30 245.85 245.85
Expenses
Profit before
Exceptional Items 953.44
958.49 502.71 502.71
and Tax
Add: Exceptional
Item-Keyman
Insurance 0.00
0.00 26.09 26.09
on Maturity
Profit before Tax 958.49 528.80 953.44 528.80
Tax Expenses
-Current Tax 204.34*
205.91* 111.33 111.33
(*Net of MAT
Credit
Entitlement)
-Deferred tax 127.08 75.01 127.08 75.01
Short/(Excess)
Provision-
Earlier Years 0.00* (0.04) 0.00* (0.04)
(*Rs 3,739)
Profit for
the Year 625.50 342.50 622.02 342.50
Add: Balance
brought forward
from 2,128.56
2,128.56 1,823.24 1,823.24
last year''s
account
Amount available
for
Appropriations 2,754.06 2,165.74 2,750.58 2,165.74
Appropriations:
Proposed Dividend
on Equity Shares 38.62 30.89 38.62 30.89
Dividend
Distribution
Tax on Proposed 7.86
7.86 6.29 6.29
Dividend
REVIEW OF BUSINESS OPERATIONS ON STANDALONE BASIS
During the year, your Company''s turnover increased to Rs, 24,980.15
millions as against Rs, 21,709.22 millions in FY 2014-15 showing a
strong growth of 15.07%. During the year under review, turnover from
Cables stood at Rs, 15,203.48 million as compared to Rs, 14,079.82
millions in FY 2014-15, showing a growth of 7.98% and Stainless Steel
Wire Products contributed a turnover of Rs, 1,003.76 million as
compared to Rs, 1,133.31 millions in FY 2014-15. Winding Wires,
Flexible & House Wires contributed a turnover of Rs, 4,058.23 million
as compared to Rs, 3,365.81 millions in FY 2014-15, showing a growth of
20.57% and Income from Turnkey Projects also had a great contribution
in the total turnover of the Company showing a growth of 52.01 % i.e.
from Rs, 2,983.62 millions in FY 2014-15 to Rs, 4,535.37 millions in FY
2015-16. During the year under review, Profit before Tax stood at Rs,
953.44 million as compared to Rs, 528.80 millions in the preceding year
and Net Profit stood at Rs, 622.02 million as compared to Rs, 342.50
millions in the preceding year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
During the year, Company has incorporated a wholly owned subsidiary in
Australia under the name "KEI Cables Australia Pty Ltd" (w.e.f.
14.12.2015). Further, Company has one Joint Venture under the name of
Joint Venture of M/s KEI Industries Ltd. New Delhi & M/s Brugg Kabel
AG, Switzerland (JV). This JV is a jointly controlled entity within the
meaning of Accounting Standard - 27 on "Financial Reporting of
Interests in Joint Ventures". This JV is in form of an Association of
Persons (AOP) and the Company is having 100% share in Profit/Loss in
this AOP. No share capital is invested in the Joint Venture by the
respective members of JV.
Further, a separate report on the performance and financial position of
the subsidiary and joint venture is included in the consolidated
financial statements pursuant to Section 129 (3) of the Companies Act,
2013 in AOC-1 and is annexed to financial statements in the Annual
Report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements are in accordance with the
Companies Act, 2013, relevant Regulation of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and Accounting
Standard-21 on Consolidated Financial Statements (AS-21) and form part
of the Annual Report.
RESERVES
During the year, the Board of Directors of your Company has decided not
to transfer any amount to the reserves and decided to retain all the
profits under surplus account.
DIVIDEND & APPROPRIATIONS
Your Directors are pleased to recommend a dividend of Rs, 0.50/- per
equity share (i.e. @ 25%) on the Equity Shares of face value of Rs, 2/-
each for the Financial Year ended March 31, 2016, subject to the
approval of shareholders at the ensuing Annual General Meeting which
would result in appropriation of Rs, 46.48 million (including Corporate
Dividend Tax of Rs, 7.86 millions) out of profits of the Company. The
dividend if approved by the members at the forthcoming Annual General
Meeting, will be paid to:
- Those equity shareholders whose names will appear in the register of
members on September 06, 2016 and
- In respect of shares held in dematerialized form, to those
shareholders whose names will be furnished by National Securities
Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) as beneficial owners on cut-off date i.e. August 30,
2016.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF
THE REPORT
No material changes and commitments affecting the financial position of
the Company occurred between the end of financial year to which this
financial statements relates and the date of this Report.
CHANGE IN NATURE OF BUSINESS
During the year under review, there was no change in the nature of
business of the Company.
RATING BY EXTERNAL RATING AGENCIES
(A) BANK FACILITIES RATING BY ICRA:
ICRA Limited has assigned [ICRA] A- (pronounced ICRA A minus) rating to
the Long Term Bank Facilities availed by the Company vide its letter
dated 08 July, 2016. This rating is applicable to facilities having
tenure of more than one year. Facilities / Instruments with this rating
are considered to have adequate degree of safety regarding timely
servicing of financial obligations. Such facilities / instruments carry
low credit risk.
Further, ICRA Limited has assigned [ICRA] A2 (pronounced ICRA A two
plus) rating to the Short Term Bank Facilities availed by the Company
vide its letter dated 08 July, 2016. This rating is applicable to
facilities having tenure up to one year. Facilities / Instruments with
this rating are considered to have strong degree of safety regarding
timely payment / servicing of financial obligations. Such facilities /
instruments carry low credit risk.
(B) CORPORATE GOVERNANCE RATING BY CARE:
Credit Analysis & Research Limited (CARE) has re-affirmed its rating
"CARE CGR-3" to the Corporate Governance practices of the Company vide
its letter dated 07 April, 2016.
The Corporate Governance rating of KEI Industries Limited (KEI)
continues to reflect the overall compliance by the Company with
statutory requirements, satisfactory Board composition and performance
monitoring by the management, clearly identifiable ownership pattern
with well-defend organization structure, adequate Management
Information System (MIS) within the Company and prudent disclosures to
shareholders. The rating also factors in the scope for improvement in
the level of strategic oversight by the Board to further strengthen the
risk mitigation policies and steer the Company to improve its financial
performance.
(C) FIXED DEPOSIT RATING BY CARE:
Credit Analysis & Research Ltd. (CARE) has upgraded / revised the
rating assigned to the Medium Term Instrument i.e. Fixed Deposits
Scheme of the Company from ''CARE BBB (FD)'' [Triple B (Fixed Deposit)]
to ''CARE BBB (FD)'' [Triple B Plus (Fixed Deposit)] vide its letter
dated 01 July, 2015.
UNPAID/UNCLAIMED DIVIDEND
Pursuant to the circular issued by Ministry of Corporate Affairs (MCA)
with respect to Investor Education and Protection Fund (Uploading of
information regarding unpaid and unclaimed amounts lying with the
Companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your
Company has uploaded on its website www.kei-ind.com under Investor
Relation Section as well as on the Ministry''s website the information
regarding Unpaid/Unclaimed Dividend amount lying with the Company as on
16th September, 2015 (date of last Annual General Meeting).
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred
unclaimed/unpaid dividend in respect of financial year 2007-08 to the
Investor Education and Protection Fund (IEPF) established by the
Central Government, pursuant to the provisions of Section 205A of the
Companies Act, 1956.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
a) Composition:
i) During the year under review, no change has occurred in the total
strength of Board of Directors of the Company. The Company has 7
Directors with an Executive Chairman. Of the 7 Directors, 2 are
Executive Directors and 5 are Non-Executive Directors including one
Woman Director and 4 Independent Directors. The Composition of the
Board is in conformity with the provisions of the Companies Act, 2013
and relevant regulations of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 .
ii) None of the Director on the Board is a Director in more than 10
Public Companies or a member of more than 10 Committees or a Chairman
of more than 5 Committees across all Listed Companies in which he/she
is a Director. Necessary disclosures regarding Committee positions in
other Public Limited Companies as on 31st March, 2016 have been made by
all the Directors of the Company.
iii) None of the Whole-Time Key Managerial Personnel (KMP) of the
Company is holding office in any other Company as a Key Managerial
Personnel.
iv) Further, none of the Directors / KMP of the Company is disqualified
under any of the provisions of the Companies Act, 2013 and relevant
Regulations of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
b) Change in Director(s) and Key Managerial Personnel:
a. As per Section 152 of the Companies Act, 2013 and other applicable
provisions of the Act, Mrs. Archana Gupta (holding DIN:00006459),
Director of the Company, who retires by rotation at the ensuing Annual
General Meeting and being eligible offers herself for re-appointment.
b. Further, based on the recommendation of the Nomination and
Remuneration Committee held on 30th April, 2016, the Board of Directors
of the Company in its Meeting held on 21st May, 2016 has re-appointed
Mr. Anil Gupta (DIN: 00006422) as Chairman-cum-Managing Director of the
Company for a further term of 3 (Three) years w.e.f. 1st July, 2016 to
30th June, 2019 in accordance with the provisions of Section 196 and
197 of the Companies Act, 2013 read with Schedule V and rules made
there under and other applicable provisions of the Companies Act, 2013,
if any. His re-appointment requires the approval of the shareholders at
the ensuing Annual General Meeting.
The details of Directors being recommended for re-appointment as
required Under Regulation 36 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is contained in the
accompanying Notice convening ensuing Annual General Meeting of the
Company. Appropriate Resolution(s) seeking shareholders'' approval are
also included in the Notice.
c) Declaration by Independent Directors:
All the Independent Directors of the Company have given their
declaration for the FY 2015-16 that they continue to meet all the
criteria as specified under Section 149(6) & (7) of the Companies Act,
2013 and under Regulation 16(b) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 in respect of their position
as an "Independent Director" in the Company.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 6 (Six) times during the
financial year from 1st April, 2015 to 31st March, 2016 on 28th May,
2015, 06th August, 2015, 05th October, 2015, 05th November, 2015, 09th
December, 2015 and 23rd January, 2016.
Further, during the year, a separate Meeting of the Independent
Directors of the Company was also held on 26th March, 2016 to discuss
and review the performance of all other Non- Independent Directors,
Chairperson of the Company and the Board as a whole and for reviewing
and assessing the matters as prescribed under Schedule IV of the
Companies Act, 2013 and under Regulation 25(4) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
CHANGE IN CAPITAL STRUCTURE
During the year, there has been no change in the authorized, subscribed
and paid-up share capital of the Company. As at March 31, 2016, the
paid-up share capital stood at 77,237,438 equity shares of face value
of Rs, 2/- each.
FORMAL ANNUAL EVALUATION
As the ultimate responsibility for sound governance and prudential
management of a Company lies with its Board, it is imperative that the
Board remains continually proactive and effective. An important way to
achieve this is through an objective stock taking by the Board of its
own performance.
The Companies Act, 2013 not only mandates Board and Directors
evaluation, but also requires the evaluation to be formal, regularized
and transparent. SEBI has also notified Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (''Listing Regulations 2015'') on 2nd September, 2015, whereby it
has align the present Listing Agreement with the Companies Act, 2013.
In accordance with the provisions of the Companies Act, 2013 and
relevant Regulations of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and on the recommendation of the
Nomination and Remuneration Committee, the Board of Directors of the
Company at its Meeting held on 21st May, 2016 undertook an annual
evaluation of its own performance, its Committees and all the
individual Directors.
Directors were evaluated on aspects such as attendance, contribution at
Board /Committee Meetings and guidance/support to the management
outside Board/ Committee Meetings. The Committees of the Board were
assessed on the degree of fulfillment of key
responsibilities, adequacy of Committee composition and effectiveness
of Meetings.
The performance evaluation of the Independent Directors was carried out
by the whole Board. The performance evaluation of the Chairman and the
Non-Independent Directors was carried out by the Independent Directors
who also reviewed the performance of the Board, its Committees and the
Directors.
It was further acknowledged that every individual Member and Committee
of the Board contribute its best in the overall growth of the
organization.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 in respect of
Directors'' Responsibility Statement, the Directors to the best of their
knowledge hereby state and confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit and
loss of the Company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis;
(e) the directors had laid down internal financial controls to be
followed by the Company and such internal financial controls are
adequate and were operating effectively; and
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
NOMINATION AND REMUNERATION POLICY
The Company has framed a Nomination and Remuneration Policy pursuant to
Section 178 of the Companies Act, 2013 and Regulation 19(4) of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015
(Specified in Part D of the Schedule II).
The detailed Nomination & Remuneration Policy is annexed as Annexure A
and forms part of this Report and is also available on the website of
the Company at www.kei-ind.com under Investor Relations Section.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 134(3)(a) of the Companies Act, 2013, the extract
of the Annual Return in Form MGT-9 as per the provisions of Section 92
of the Companies Act, 2013 read with Rule 12 of the Companies
(Management and Administration) Rules, 2014 is annexed herewith as
Annexure B and forms part of this Report.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defend Enterprise-wide Risk Management (ERM)
framework in place for identifying risks and opportunities that may
have a bearing on the organization''s objectives, assessing them in
terms of likelihood and magnitude of impact and determining a response
strategy. The primary objective of ERM function is to implement a
framework that augments risk response decisions and reduce surprises.
ERM programme involves risk identification, assessment and risk
mitigation planning for strategic, operational, financial and compliance
related risks across various levels of the organization.
The Company''s Internal Control Systems are commensurate with the nature
of its business and the size and complexity of operations. These
systems are routinely tested by Statutory as well as Internal Auditors
and cover all offices, factories and key business areas. Significant
audit observations and follow up actions thereon are reported to the
Audit Committee.
FIXED DEPOSITS
As on 31st March, 2016 fixed deposit aggregating to Rs, 38.57 millions
are outstanding. There are no fixed deposits remaining unpaid or
unclaimed as at the end of the year.
LISTING OF SHARES
The shares of the Company are listed at National Stock Exchange of
India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange
Limited (CSE). The Company has also paid its up-to-date listing fees to
all the Stock Exchanges.
During the year, subsequent to the notification of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, your
Company has entered into "Uniform Listing Agreement" with the Stock
Exchanges where the shares are listed namely National Stock Exchange of
India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange
Limited (CSE) in order to carry out a notation of the erstwhile Listing
Agreement.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS
IN FUTURE
During the year, there was no significant and material order passed by
any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern
status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate
system of internal control commensurate with its size and nature of
business. This system provide a reasonable assurance in respect of
providing financial and operational information, complying with
applicable statutes, safeguarding of assets of the Company and ensuring
compliance with corporate policies. The Board has appointed M/s Pawan
Shubham & Co. Chartered Accountants as Internal Auditors of the Company
and its audit reports are submitted directly to the Audit Committee of
Board which reviews and approves performance of internal audit function
and ensures the necessary checks and balances that may need to be built
into the control system.
HUMAN RESOURCES
Company''s industrial relations continued to be harmonious during the
period under review.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the financial year, the Company has not entered into any
materially significant related party contracts/ arrangements or
transactions with the Company''s promoters, Directors, management or
their relatives, which could have had a potential confect with the
interests of the Company. All the contracts/arrangements or
transactions entered into by the Company with Related party(ies) are in
conformity with the provisions of the Companies Act, 2013 and on an
arm''s length basis and do not attract the provisions of Section 188 of
the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
Accordingly, the disclosure of Related Party Transactions as required
under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not
applicable. The Company presents a statement of all related party
contracts / arrangements or transactions entered into by the Company
before the Audit Committee for its consideration and review on
quarterly basis.
Further, the Policy on Materiality of Related Party Transactions as
formed and approved by the Audit Committee and the Board of Directors
as per Regulation 23 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 is available on the website of the
Company at www.kei-ind.com under Investor Relations Section.
POLICY ON MATERIAL SUBSIDIARY
The Company has framed a Policy on Material Subsidiary under
Regulations 16(c) of SEBI (Listing Obligations and Disclosures
Requirements) Regulations, 2015 which is available on the website of
the Company at www.kei-ind.com under Investor Relations Section.
AUDIT COMMITTEE
Pursuant to the provisions of Section 177 of the Companies Act, 2013
read with Rule 6 of the Companies (Meetings of the Board and its
Powers) Rules, 2014 and Regulation 18 of SEBI (Listing Obligations and
Disclosures Requirements) Regulations, 2015, the composition of the
Audit Committee is as under:
Sl. Name of the Director Category Profession
No.
1. Mr. Pawan Kumar Bholusaria Independent Chartered
Director
(Chairman) Accountant
2. Mr. Kishan Gopal Somani Independent Chartered
Director
(Member) Accountant
3. Mr. Vikram Bhartia Independent Business
Director
(Member)
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the Company
acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee
during the financial year.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies
Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and
its Powers) Rules, 2014 and Regulation 22 of SEBI (Listing Obligations
and Disclosures Requirements) Regulations, 2015, the Company has
established a Vigil Mechanism/ Whistle Blower Mechanism and overseas
through the Audit Committee, the genuine concerns expressed by the
employees and Directors of the Company. The Company has also provided
adequate safeguards against victimization of employees and Directors
who express their concerns. The Company has also provided direct access
to the Chairman of the Audit Committee on reporting issues concerning
the interests of co-employees and the Company. During the year under
review, no personnel has been denied access to the Audit Committee.
Further, the Vigil Mechanism/ Whistle Blower Policy have been uploaded
on the website of the Company at www.kei-ind.com under Investor
Relations Section.
SHARES
a. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of
its securities.
b. SWEAT EQUITY
During the year under review, the Company has not issued any Sweat
Equity Shares.
c. BONUS SHARES
During the year under review, no Bonus Shares were issued by the
Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year Nomination and Remuneration Committee of the Board has
granted 2,252,000 options to eligible employees of the Company.
AUDITORS
a) Statutory Auditors:
M/s. Jagdish Chand & Co, Chartered Accountants (Firm Registration
Number: 000129N), Auditors of the Company will retire at the conclusion
of the ensuing AGM of the Company and are recommended for
re-appointment based on consent and certificate furnished by them under
Section 139 and 141 of the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014.
Statutory Auditors'' Report
The observations / comments of Statutory Auditors in their Auditor''s
Report are self explanatory and therefore do not call for any further
clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. S. Chander & Associates,
Cost Accountants (Membership No.: M/9455) as Cost Auditor of the
Company to conduct audit of Cost Records maintained by the Company for
the financial year 2016-17 in accordance with Section 148 and the
Companies (Cost Records and Audit) Rules, 2014 after obtaining his
consent and certificate under Section 139, 141 and 148 of the Companies
Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014
where they have confirmed their consent and eligibility to act as Cost
Auditors of the Company.
Further, the Cost Audit Report for the FY 2014-15 was fled on October
24, 2015.
c) Secretarial Auditors:
The Board of Directors has re-appointed Mr. Baldev Singh Kashtwal,
Practicing Company Secretary (Membership No. FCS-3616 & CP No. 3169),
Partner, M/s. RSM & Co., Company Secretaries as Secretarial Auditors of
the Company pursuant to the provisions of Section 204 of the Companies
Act, 2013 read with corresponding rules made there under for conducting
Secretarial Audit of the Company for the financial year 2016-17.
Secretarial Audit Report:
The Secretarial Audit Report for the FY 2015-16 as submitted by
Secretarial Auditors in Form MR-3 is annexed to this Report as Annexure
- C.
There are no qualifications, reservations or adverse remarks made by
Secretarial Auditors in their Report.
CORPORATE SOCIAL RESPONSIBILITY
The Company has framed a Policy on Corporate Social Responsibility
pursuant to Section 135 of the Companies Act, 2013 read with the
Companies (Corporate Social Responsibility Policy) Rules, 2014 which is
available on the website of the Company at www.kei-ind.com under
Investor Relations Section.
The Annual Report on Company''s CSR activities of the Company as per the
Companies (Corporate Social Responsibility Policy) Rules, 2014 is
annexed as Annexure-D and forms part of this report.
LOAN(S), GUARANTEE(S) OR INVESTMENT(S)
During the year, your Company has duly complied with the provisions of
Section 186 of the Companies Act, 2013 and no loan was granted by the
Company under Section 186 of the Companies Act, 2013. The particulars
of Corporate Guarantees provided and Investment made by the Company
during the year are as follows:
Sl. Particulars of Corporate Guarantees Amount
No. and Investment made u/s 186 of (in Millions)
the Companies Act, 2013
1 Corporate Guarantee in favour of 80.00
Corporation Bank against
Channel Financing Facility provided to the
Dealers of the Company.
2 Renewal of First Loss Default 150.00
Guarantee in favour of IDBI Bank
Limited against Channel Financing
Facility provided to the Dealers of
the Company.
3 Investment of AUD 100 towards initial 0.00*
Share Capital for
incorporation of
wholly owned subsidiary in the name of
"KEI Cables Australia Pty Ltd."
in Australia
Total 230.00
* Rs, 5164.
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment
free workplace for every individual working in the Company. Your
Company always endeavors to create and provide an environment that is
free from discrimination and harassment including sexual harassment.
In accordance with "The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013" and in order to
provide for the effective enforcement of the basic human right of gender
equality and guarantee against sexual harassment and abuse, more
particularly against sexual harassment at work places, your Company has
constituted an Internal Complaint Committee and adopted a Policy on
Prevention of Sexual Harassment at Workplace. The Policy aims to
provide the effective enforcement of basic human right of gender
equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal
Complaint Committee, formed under "The Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013".
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP) /
EMPLOYEES
The information required under Section 197 read with Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is annexed as Annexure E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption, Foreign Exchange Earnings and Outgo as required under
Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 is annexed as Annexure F and forms
part of this Report.
CORPORATE GOVERNANCE
Your Directors are pleased to report that your Company strives to
ensure that best Corporate Governance practices are identified, adopted
and consistently followed. Your Company believes that good governance
is the basis for sustainable growth of the business and for enhancement
of stakeholder''s value.
Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a separate Section titled Report on
Corporate Governance has been included in this Annual Report and the
certificate of M/s Jagdish Chand & Co., Chartered Accountants, the
statutory auditors of the Company certifying compliance with the
conditions of Corporate Governance as stipulated under relevant
Regulations of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is obtained and annexed with the report on Corporate
Governance.
MANAGEMENT''S DISCUSSION AND ANALYSIS REPORT
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Regulation 34 of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, is presented in a separate
section and forms part of this Annual Report.
APPRECIATIONS
Your Directors place on record their sincere appreciation for
significant contribution made by employees of the Company at each level,
through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued
co-operation and support extended to the Company by various Banks,
Stock Exchanges, NSDL and CDSL. The Board wishes to express its
grateful appreciation for the assistance and co-operation received from
Vendors, Customers Consultants, Banks, Financial Institutions, Central
and State Government bodies, Dealers, and other Business Associates.
The Board deeply acknowledges the trust and confidence placed by the
consumers of the Company and, above all, the shareholders.
FOR AND ON BEHALF OF THE BOARD
(ANIL GUPTA)
Chairman-cum-Managing Director
DIN: 00006422
Date: July 20, 2016
Place: New Delhi
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their 23rd Annual Report,
together with the Audited Annual Financial Statements of the Company
for the year ended March 31, 2015.
FINANCIAL SUMMARY
The Company's financial performance for the year ended March 31, 2015
alongwith previous year's figures are summarized below:
(Rs. in Millions)
Particulars Year ended Year ended
March 31, 2015 March 31, 2014
Revenue from Operations
(Gross) and Other Income 21,733.05 17,547.50
Profit before Finance Costs,
Depreciation and Amortisation Less:
Expenses and Tax Expenses 1,952.54 1,543.21
Less: Finance Cost 1,203.98 1,115.30
Depreciation and
Amortisation Expenses 245.85 209.74
Profit before Exceptional
Items and Tax 502.71 218.17
Add: Exceptional Item-
Keyman Insurance on 26.09 -
Maturity
Profit before Tax 528.80 218.17
Tax Expenses
* Current Tax 111.33 46.00
* Deferred tax 75.01 54.71
Short/(Excess) Provision
-Earlier Years (0.04) 1.45
Profit for the Year 342.50 116.01
Add: Balance brought
forward from last year's
account 1,823.24 1,725.30
Amount available for
Appropriations 2,165.74 1,841.31
Appropriations:
Proposed Dividend on Equity
Shares 30.89 15.45
Dividend Distribution Tax on
Proposed Dividend 6.29 2.62
REVIEW OF BUSINESS OPERATIONS
During the year, your Company's turnover increased to Rs. 21,709.22
millions as against Rs. 17,534.73 millions in FY 2013-14 showing a
strong growth of 23.81%. During the year under review, turnover from
Cables stood at Rs. 14,079.82 millions as compared to Rs. 12,718.20
millions in FY 2013-14, showing a growth of 10.71%. Stainless Steel
Wire Products contributed a turnover of Rs. 1,133.31 millions as
compared to Rs. 1,003.06 millions in FY 2013-14, showing a growth of
12.99%. Winding Wires, Flexible & House Wires contributed a turnover of
Rs. 3,365.81 millions as compared to Rs. 2,940.68 millions in FY
2013-14, showing a growth of 14.46% and Income from Turnkey Projects
also had a great contribution in the total turnover of the Company
showing a strong growth of 341.66 % i.e. from Rs. 675.54 millions in FY
2013-14 to Rs. 2,983.62 millions in FY 2014- 15. During the year under
review, Profit before Tax stood at Rs. 528.80 millions as compared to
Rs. 218.17 millions in the preceding year and Net Profit stood at Rs.
342.50 millions as compared to Rs. 116.01 millions in the preceding
year.
SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
Your Company doesn't have any subsidiary. However during the year
(w.e.f.24.06.2014) , your Company has formed a Joint Venture under the
name of Joint Venture of M/s KEI Industries Ltd. New Delhi & M/s Brugg
Kabel AG, Switzerland (JV) for the execution of contract awarded by
Delhi Metro Rail Corporation Ltd. (DMRC), in which your Company i.e.
KEI is the Lead Partner having 75% participation and Brugg Kabel AG
being other partner having 25 % participation. This JV is a Jointly
Controlled Entity within the meaning of Accounting Standard - 27 on
"Financial Reporting of Interests in Joint Ventures" and covered under
Associate Company in accordance with Section 2(6) of the Companies Act,
2013. No share capital is invested in the Joint Venture by the
respective members of JV.
Further, during the financial year ended 31st March, 2015, M/s. KEI
International Limited ceased to become Associate Company of KEI (w.e.f.
20th June, 2014).
RESERVES
During the year, the Board of Directors of your Company has decided not
to transfer any amount to the reserves and decided to retain all the
profits under surplus account.
DIVIDEND & APPROPRIATIONS:
Your Directors are pleased to recommend a dividend of Rs. 0.40/- per
equity share (i.e. @ 20%) on the Equity Shares of face value of Rs. 2/-
each for the Financial Year ended March 31, 2015, subject to the
approval of shareholders at the ensuing Annual General Meeting which
would result in appropriation of Rs. 37.18 millions (including
Corporate Dividend Tax of Rs. 6.29 millions) out of profits of the
Company. The dividend if approved by the members at the forthcoming
Annual General Meeting, will be paid to:
* Those equity shareholders whose names will appear in the register of
members on September 16, 2015 and
* In respect of shares held in dematerialized form, to those
shareholders whose names will be furnished by National Securities
Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) as beneficial owners on cut-off date i.e. September 9,
2015.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
OF THE COMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF
THE REPORT
No material changes and commitments affecting the financial position of
the Company occurred between the end of financial year to which this
financial statements relates and the date of this Report.
CHANGE IN NATURE OF BUSINESS
During the year under review, there was no change in the nature of
business of the Company.
RATING BY CARE
Credit Analysis & Research Ltd (CARE) has upgraded / revised the rating
assigned to the Long Term Bank Facilities availed by the Company from
'CARE BBB' (Triple B) to 'CARE BBB ' (Triple B Plus) and also upgraded
/ revised the rating assigned to the Medium Term Instrument i.e. Fixed
Deposits Scheme of the Company from 'CARE BBB (FD)' [Triple B (Fixed
Deposit)] to 'CARE BBB (FD)' [Triple B Plus (Fixed Deposit)]. This
rating is applicable to facilities having tenure of more than one year.
Facilities with these ratings are considered to have moderate degree of
safety regarding timely servicing of financial obligations. Such
facilities carry moderate credit risk.
Further, CARE has re-affirmed the rating 'CARE A3 ' (A Three plus)
assigned to Commercial Paper (CP) and the Short Term Bank Facilities
availed by the Company. This rating is applicable to facilities having
tenure up to one year. Facilities with this rating are considered to
have moderate degree of safety regarding timely payment of financial
obligations.
CARE has also re-affirmed its rating "CARE CGR 3" to the Corporate
Governance practice of the Company. CARE has upgraded / re-affirmed
the rating after taking into account KEI's long track record of
operations, improved Financial performance, healthy order-book
position, strong dealership network, experience of Promoters and their
demonstrated financial support, its established market position in
cable industry, its wide variety of products, its diversified and
reputed clientele as well as technological tie-up with Brugg Kabel AG,
(Switzerland) for Extra High Voltage (EHV) cables.
UNPAID / UNCLAIMED DIVIDEND
Pursuant to the circular issued by Ministry of Corporate Affairs (MCA)
with respect to Investor Education and Protection Fund (Uploading of
information regarding unpaid and unclaimed amounts lying with the
Companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your
Company has uploaded on its website www.kei-ind.com under Investor
Relations Section as well as on the Ministry's website the information
regarding Unpaid/ Unclaimed Dividend amount lying with the Company as
on 19th September, 2014 (date of last Annual General Meeting).
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred
unclaimed/unpaid dividend in respect of financial year 2006-07 to the
Investor Education and Protection Fund (IEPF) established by the
Central Government, pursuant to the provisions of Section 205A of the
Companies Act, 1956.
DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP)
a) Composition
i) During the year under review, no change has occurred in the total
strength of Board of Directors of the Company. The Company has 7
Directors with an Executive Chairman. Of the 7 Directors, 2 are
Executive Directors and 5 are Non-Executive Directors including one
Woman Director and 4 Independent Directors. The Composition of the
Board is in conformity with Section 149 of the Companies Act, 2013 and
clause 49 of the Listing Agreements entered into with the Stock
Exchanges.
ii) None of the Director on the Board is a director in more than 10
public Companies or a member of more than 10 Committees or a Chairman
of more than 5 Committees across all the companies in which he/ she is
a Director. Necessary disclosures regarding Committee positions in
other Public Limited Companies as on 31st March, 2015 have been made by
all the Directors of the Company.
iii) None of the Whole-time Key Managerial Personnel (KMP) of the
Company holding office in any other Company as a Key Managerial
Personnel.
Further, none of the Directors/KMP of the Company is disqualified under
any of the provisions of Companies Act, 2013 and clause 49 of the
Listing Agreement.
b) Change in Director(s) and Key Managerial Personnel
a. As per Section 152 of the Companies Act, 2013 and other applicable
provisions of the Act, Mr. Rajeev Gupta (holding DIN:00128865),
Director of the Company, who retires by rotation at the ensuing Annual
General Meeting and being eligible offers himself for re-appointment.
Further, based on the recommendation of the Nomination and Remuneration
Committee, the Board of Directors of the Company in its Meeting held on
28th May, 2015 has re-appointed Mr. Rajeev Gupta (holding DIN:
00128865) as Whole-time- Director of the Company (designated as
Executive Director (Finance) & CFO) for a further term of 5 (Five)
years w.e.f. 1st June, 2015 to 31st May, 2020 in accordance with the
provisions of Section 196 and197 of the Companies Act, 2013 read
Schedule V and rules made thereunder and other applicable provisions of
the Companies Act, 2013, if any. His re-appointment requires the
approval of the shareholders at the ensuing Annual General Meeting.
b. During the year, Mr. Anil Gupta, Chairman-cum- Managing Director,
Mr. Kishore Kunal, Company Secretary and Mr. Rajeev Gupta, Executive
Director (Finance) and CFO of the Company were designated as Key
Managerial Personnel of the Company in accordance with the provisions
of Section 203 of the Companies Act, 2013 and rules made thereunder.
The details of Director being recommended for re-appointment as
required in clause 49 of the Listing Agreement is contained in the
accompanying Notice convening ensuing Annual General Meeting of the
Company. Appropriate Resolution(s) seeking shareholders' approval are
also included in the Notice.
c) Declaration by Independent Directors
All the Independent Directors of the Company have given their
declaration for the FY 2014-15 that they continue to meet all the
criteria as specified under Section 149(6) of the Companies Act, 2013
and clause 49 of the Listing Agreement in respect of their position as
an "Independent Director" in the Company.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
The Board of Directors of the Company duly met 6 (Six) times during the
financial year from 1st April, 2014 to 31st March, 2015 on 15th May,
2014, 08th August, 2014, 06th November, 2014, 24th November, 2014, 22nd
December, 2014 and 10th February, 2015.
Further, during the year, a separate meeting of the Independent
Directors of the Company was also held on 10th February, 2015 to
discuss and review the performance of all other non- Independent
Directors, Chairperson of the Company and the Board as a whole and for
reviewing and assessing the matters as prescribed under Schedule IV of
Companies Act, 2013 and clause 49 of the Listing Agreement.
CHANGE IN CAPITAL STRUCTURE
During the financial year under review, the paid-up share capital of
the Company has increased from 73,737,438 equity shares of face value
of Rs. 2/- each to 77,237,438 equity shares of face value of Rs. 2/-
each, pursuant to allotment of 35,00,000 (Thirty Five Lakhs) equity
shares of face value of Rs. 2/- each to promoters' group entity upon
conversion of Share Warrants, in the Share Capital of the Company and
the same has been listed with NSE, BSE and CSE.
FORMAL ANNUAL EVALUATION
As the ultimate responsibility for sound governance and prudential
management of a Company lies with its Board, it is imperative that the
Board remains continually proactive and effective. An important way to
achieve this is through an objective stock taking by the Board of its
own performance.
The Companies Act, 2013 not only mandates Board and Directors
evaluation, but also requires the evaluation to be formal, regularised
and transparent. SEBI has also revised the Equity Listing Agreement, to
bring the requirements on this subject in line with the Act.
In accordance with the provisions of Companies Act, 2013 and clause 49
of the Listing Agreement and on the recommendation of the Nomination
and Remuneration Committee, the Board of Directors of the Company at
its meeting held on 28th May, 2015 undertook an annual evaluation of
its own performance, its Committees and all the individual Directors.
Directors were evaluated on aspects such as attendance, contribution at
Board/Committee meetings and guidance/ support to the management
outside Board/Committee meetings. The Committees of the Board were
assessed on the degree of fulfillment of key responsibilities, adequacy
of Committee composition and effectiveness of meetings.
The performance evaluation of the Independent Directors was carried out
by the whole Board. The performance evaluation of the Chairman and the
Non Independent Directors was carried out by the Independent Directors
who also reviewed the performance of the Board, its Committees and the
Directors.
It was further acknowledged that every individual Member and Committee
of the Board contribute its best in the overall growth of the
organisation.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134 (3)(c) of the Companies Act, 2013 in respect of
Directors' Responsibility Statement, the Directors to the best of their
knowledge hereby state and confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit and
loss of the company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis;
(e) the directors had laid down internal financial controls to be
followed by the company and such internal financial controls are
adequate and were operating effectively; and
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
NOMINATION AND REMUNERATION POLICY
Pursuant to Section 178 of the Companies Act, 2013, on recommendation
of the Nomination & Remuneration Committee, the Board of Directors of
the Company at its meeting held on 08th August, 2014 had approved the
policy on selection and appointment of Directors, Senior Management and
other employees of the Company and their remuneration, positive
attributes, Directors' qualifications, Independence of Directors and
other related matters. The detailed Nomination & Remuneration Policy is
annexed as Annexure A and forms part of this Report and is also
available on the website of the Company at www.kei-ind.com under
Investor Relations Section.
EXTRACT OF ANNUAL RETURN
Pursuant to Section 134(3)(a) of the Companies Act, 2013 the extract of
the Annual Return in Form MGT-9 as per the provisions of Section 92 of
the Companies Act, 2013, read with Rule 12 of the Companies (Management
and Administration) Rules, 2014 is annexed herewith as Annexure B and
forms part of this Report.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has well defined Enterprise-wide Risk Management (ERM)
framework in place for identifying risks and opportunities that may
have a bearing on the organization's objectives, assessing them in
terms of likelihood and magnitude of impact and determining a response
strategy. The primary objective of ERM function is to implement a
framework that augments risk response decisions and reduce surprises.
ERM programme involves risk identification, assessment and risk
mitigation planning for strategic, operational, financial and
compliance related risks across various levels of the organization.
The Company's internal control systems are commensurate with the nature
of its business and the size and complexity of operations. These
systems are routinely tested by Statutory as well as Internal Auditors
and cover all offices, factories and key business areas. Significant
audit observations and follow up actions thereon are reported to the
Audit Committee.
FIXED DEPOSITS
During the year, your Company repaid all the outstanding fixed deposits
aggregating to Rs. 42.48 millions as per the provisions of the
Companies Act, 2013 and obtained fresh approval from the shareholders
at the 22nd Annual General Meeting of the Company held on 19th
September, 2014 in accordance with Section 73 and 76 of the Companies
Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014
and other applicable provisions, if any making the Company eligible to
invite/accept/renew/receive money by way of unsecured or secured
deposit, or in any other form, from public and/or members of the
Company. As on 31st March, 2015 fixed deposit aggregating to Rs. 4.70
millions are outstanding. There are no fixed deposits remaining unpaid
or unclaimed as at the end of the year.
LISTING OF SHARES
The shares of the Company are listed at National Stock Exchange of
India Limited (NSE), BSE Limited (BSE) and The Calcutta Stock Exchange
Limited (CSE). The Company has also paid its up-to-date listing fees to
all the stock exchanges.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS
IN FUTURE
During the year, there was no significant and material order passed by
any Regulator(s) or Court(s) or Tribunal(s) impacting the going concern
status and future operations of the Company.
ADEQUACY OF INTERNAL FINANCIAL CONTROL
In the opinion of the Board, your Company has in place an adequate
system of internal control commensurate with its size and nature of
business. This system provide a reasonable assurance in respect of
providing financial and operational information, complying with
applicable statutes, safeguarding of assets of the Company and ensuring
compliance with corporate policies. The Board has appointed M/S Pawan
Shubham & Co., Chartered Accountants as Internal Auditors of the
Company and its audit reports are submitted directly to Audit Committee
of Board which reviews and approves performance of internal audit
function and ensures the necessary checks and balances that may need to
be built into the control system.
HUMAN RESOURCES
Company's industrial relations continued to be harmonious during the
period under review.
CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the financial year, the Company has not entered into any
materially significant related party contracts/ arrangements or
transactions with the Company's promoters, Directors, management or
their relatives, which could have had a potential conflict with the
interests of the Company. All the contracts/arrangements or
transactions entered into by the Company with Related party(ies) are in
conformity with the provisions of Companies Act, 2013, clause 49 of the
Listing Agreement and on an arm's length basis and do not attract the
provisions of Section 188 of the Companies Act, 2013 and clause 49 of
Listing Agreement.
Accordingly, the disclosure of Related Party Transactions as required
under Section 134(3) (h) ofthe Companies Act, 2013 in Form AOC 2 is not
applicable. The Company presents a statement of all related party
contracts / arrangements or transactions entered into by the Company
before the Audit Committee for its consideration and review on
quarterly basis.
Further, the Policy on materiality of Related Party Transactions as
formed and approved by the Audit Committee and the Board of Directors as
per clause 49 of the Listing Agreement is available on the website of
the Company at www.kei-ind.com under Investor Relations Section.
POLICY ON MATERIAL SUBSIDIARY
In line with the requirements of clause 49 of Listing Agreement, the
Company has formulated a Policy for determining 'material subsidiaries'
which is available on the website of the Company at www.kei-ind.com
under Investor Relations Section.
AUDIT COMMITTEE
Pursuant to the provisions of Section 177 of the Companies Act, 2013
read with Rule 6 of the Companies (Meetings of the Board and its
Powers) Rules, 2014 and clause 49 of the Listing Agreement, the
composition of the Audit Committee is as under:
Sl. Name of the Directors Category Profession
No.
1. Mr. Pawan Kumar Independent Chartered
Bholusaria Director (Chairman) Accountant
2. Mr. Kishan Gopal Independent Chartered
Somani Director (Member) Accountant
3. Mr. Vikram Bhartia Independent Business
Director (Member)
Mr. Kishore Kunal, Company Secretary & Compliance Officer of the
Company acts as Secretary to the Committee.
Further, the Board has not denied any recommendation of Audit Committee
during the Financial Year.
VIGIL MECHANISM/ WHISTLE BLOWER POLICY
In terms of the provisions of Section 177(9) & (10) of the Companies
Act, 2013 read with Rule 7 of the Companies (Meetings of the Board and
its Powers) Rules, 2014 and as per clause 49 of the Listing Agreement,
the Company has established a Vigil Mechanism/ Whistle Blower Mechanism
and overseas through the Audit Committee, the genuine concerns
expressed by the employees and Directors of the Company. The Company
has also provided adequate safeguards against victimization of
employees and Directors who express their concerns. The Company has
also provided direct access to the chairman of the Audit Committee on
reporting issues concerning the interests of co-employees and the
Company. During the year under review, no personnel has been denied
access to the Audit Committee. Further, the Vigil Mechanism/ Whistle
Blower Policy have been uploaded on the website of the Company at
www.kei-ind.com under Investor Relations Section.
SHARES
a. BUY BACK OF SECURITIES
During the year under review, the Company has not bought back any of
its securities.
b. SWEAT EQUITY
During the year under review, the Company has not issued any Sweat
Equity Shares.
c. BONUS SHARES
During the year under review, no Bonus Shares were issued by the
Company.
d. EMPLOYEES STOCK OPTION PLAN
During the year under review, the Company has not issued shares /
provided any Employee Stock Option to the employees.
AUDITORS
a) Statutory Auditors:
M/s. Jagdish Chand & Co., Chartered Accountants (Firm Registration
Number: 000129N), auditors of the Company will retire at the conclusion
of the ensuing AGM of the Company and are recommended for
re-appointment based on consent and certificate furnished by them under
Section 139, 141 of the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014.
Statutory Auditors' Report
The observations/comments of Statutory Auditors in their Report are
self explanatory and therefore do not call for any further
clarification / comment.
b) Cost Auditor:
Your Board of Directors has re-appointed M/s. Chander & Associates,
Cost Accountants (Membership No.: M/9455) as Cost Auditor of the
Company to conduct audit of Cost Records maintained by the Company for
the financial year 2015-16 in accordance with Section 148 and the
Companies (Cost Records and Audit) Rules, 2014 after obtaining his
consent and certificate under Section 139, 141 and 148 of the Companies
Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014.
Further, the Cost Audit Report for the FY 2013-14 was filed on October
17, 2014 (before due date).
c) Secretarial Auditors
The Board of Directors has re-appointed Mr. Baldev Singh Kashtwal,
Practicing Company Secretary (Membership No. FCS-3616 & CP No. 3169),
Partner, M/s. RSM & Co., Company Secretaries as Secretarial Auditors of
the Company pursuant to the provisions of Section 204 of the Companies
Act, 2013 read with corresponding rules made thereunder for conducting
Secretarial Audit of the Company for the financial year 2015-16.
Secretarial Audit Report
The Secretarial Audit Report for the FY 2014-15 as submitted by
Secretarial Auditors in Form MR-3 is annexed to this Report as
Annexure - C.
There are no qualifications, reservations or adverse remarks made by
Secretarial Auditors in their Report.
CORPORATE SOCIAL RESPONSIBILITY
Pursuant to Section 135 of the Companies Act, 2013 read with the
Companies (Corporate Social Responsibility Policy) Rules, 2014, the
Board of Directors of your Company has adopted the CSR Policy as
approved by the Corporate Social Responsibility Committee and the same
is available on the website of the Company at www.kei-ind.com under
Investor Relations Section.
The Annual Report on Company's CSR activities of the Company as per the
Companies (Corporate Social Respon- sibility Policy) Rules, 2014 is
annexed as Annexure-D and forms part of this report.
LOAN(S), GUARANTEE(S) OR INVESTMENT(S)
During the year, your Company has duly complied with the provisions of
Section 186 of the Companies Act, 2013 and no loan was granted by the
Company under Section 186 of the Companies Act, 2013. The particulars
of Corporate Guarantees provided and investment made by the Company
during the year are as follows:
Sl. Particulars of Corporate guarantees and Amount
No. Investment made u/s 186 of the Companies (Rs. in Millions)
2013 Act,
1. First Loss Default Guarantee in favour 150.00
of IDBI Bank Limited against
Channel Financing Facility provided
to the Dealers of the
Company for a period
of one year.
2. Corporate Guarantee in favour of 350.00
AXIS Bank Limited against
Channel Financing Facility provided to the
Dealer of the Company for a period of one year.
3. Investment in 50 equity shares of Rs. 10/- 0.00
each of "The Saraswat Co-operative
Bank Limited" for availing Bill
Discounting Facility.
Total 500.00
PREVENTION OF SEXUAL HARASSMENT
Your Company has always believed in providing a safe and harassment free
workplace for every individual working in the Company. Your Company
always endeavors to create and provide an environment that is free from
discrimination and harassment including sexual harassment.
In accordance with "The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013" and in order to
provide for the effective enforcement of the basic human right of
gender equality and guarantee against sexual harassment and abuse, more
particularly against sexual harassment at work places, your Company has
constituted an Internal Complaint Committee and adopted a policy on
Prevention of Sexual Harassment at Workplace. The policy aims to
provide the effective enforcement of basic human right of gender
equality and guarantee against sexual harassment and abuse.
During the year, there was no complaint lodged with the Internal
Complaint Committee, formed under "The Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013".
REMUNERATION OF THE DIRECTORS / KEY MANAGERIAL PERSONNEL (KMP)
/EMPLOYEES
The information required under Section 197 read with Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 is annexed as Annexure E and forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption, Foreign Exchange Earnings and Outgo as required under
Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 is annexed as Annexure F and forms
part of this Report.
CORPORATE GOVERNANCE
Your Directors are pleased to report that your Company strives to
ensure that best corporate governance practices are identified, adopted
and consistently followed. Your Company believes that good governance
is the basis for sustainable growth of the business and for enhancement
of stakeholder's value.
Pursuant to clause 49 of the Listing Agreement with Stock Exchanges, a
separate Section titled Report on Corporate Governance has been
included in this Annual Report and the certificate of M/s Jagdish Chand
& Co., Chartered Accountants, the statutory auditors of the Company
certifying compliance with the conditions of corporate governance as
stipulated in clause 49 of the Listing Agreement with stock exchanges
is obtained and annexed with the report on corporate governance.
MANAGEMENT'S DISCUSSION AND ANALYSIS REPORT
Management's Discussion and Analysis Report for the year under review,
as stipulated under clause 49 of the Listing Agreement with the Stock
Exchanges, is presented in a separate section and forms part of this
Annual Report.
APPRECIATIONS
Your Directors place on record their sincere appreciation for
significant contribution made by employees of the Company at each
level, through their dedication, hard work and commitment.
The Board places on record its appreciation for the continued
co-operation and support extended to the Company by various Banks,
Stock Exchanges, NSDL and CDSL. The Board wishes to express its
grateful appreciation for the assistance and co-operation received from
Vendors, Customers Consultants, Banks, Financial Institutions, Central
and State Government bodies, Dealers, and other Business Associates.
The Board deeply acknowledges the trust and confidence placed by the
consumers of the Company and, above all, the shareholders.
FOR AND ON BEHALF OF THE BOARD
(ANIL GUPTA )
Chairman-cum-Managing Director
DIN: 00006422
Place: New Delhi
Date : August 6, 2015
Mar 31, 2014
To The Members
The Directors take pleasure in presenting their 22nd Annual Report for
the year ended March 31, 2014. Briefly stated the Financial Results of
operation are: -
(Rs. In lacs)
Particulars Year ended Year ended
March 31, 2014 March 31, 2013
Revenue from Operations
(Gross) and Other Income 1,75,475.01 1,81,463.80
Profit before Finance Costs,
Depreciation and Amortisation
Expenses and Tax Expenses 15,432.05 17,287.46
Less: Finance Cost 11,153.06 10,935.37
Depreciation and
Amortisation Expenses 2,097.35 2,044.48
Profit before tax 2,181.64 4,307.61
Tax Expenses
 Current Tax 459.97 850.98
 Deferred tax 547.10 822.85
Short/(Excess) Provision
-Earlier Years 14.49 0.08
Profit for the Year 1,160.08 2,633.70
Add: Balance brought
forward from last year''s
account 17,252.99 14,783.63
Amount available for
Appropriations 18,413.07 17,417.33
Appropriations:
Proposed Dividend on
Equity Shares 154.48 140.47
Dividend Distribution
Tax on Proposed Dividend 26.25 23.87
APPROPRIATIONS
DIVIDEND & APPROPRIATIONS:
During the year under review, your Directors have recommended a
dividend of? 0.20/- per equity share (i.e. @ 10%) on the Equity Shares
of face value of? 2/- each for the Financial Year ended March 31, 2014,
including 35,00,000 equity shares of face value of? 2/- each allotted
by the Board of Directors on 15.05.2014 upon conversion of 35,00,000
outstanding Warrants. Dividend if approved by the members at the
forthcoming Annual General Meeting, will be paid to:
Those equity shareholders whose names appear in the register of members
on September 19, 2014.
Those whose names as beneficial owners are furnished by National
Securities Depository Limited and Central Depository Services (India)
Limited.
REVIEW OF OPERATIONS
During the year 2013-14, turnover of your Company remained flat and
there was slight decline from ? 1,81,463.80 Lacs to? 1,75,475.01 Lacs.
During the year, turnover from Cables stood at ? 1,27,182.02 lacs as
compared to? 1,29,482.16 lacs in 2012-13, showing a marginal decline of
1.78%. Stainless Steel Wre Products contributed a turnover of?
10,030.62 lacs in 2013-14 as compared to ? 8,305.69 lacs in 2012-13,
showing strong growth of 20.77%. Wnding wire, Flexible & House Wre
contributed ? 29,406.73 lacs in 2013-14 as against ? 26,647.77 lacs in
2012-13, showing growth of 10.35%. During the year under review,
Profit before finance costs, depreciation and amortisation expenses and
tax expenses stood at ? 15,432.05 lacs as compared to 17,287.46 lacs
while Profit Before Tax stood at ? 2,181.64 lacs and Net profit at?
1,160.08 lacs respectively. Your Company was able to bag various
prestigious orders of elastomeric cables, speciality cables apart from
normal cables & wires which contributed towards achievement of
turnover. The Company has already marked its presence in Extra High
Voltage (EHV) Cable segment ranging from 66kV to 220kV and will
continue to further strengthen its position in this segment with
Technical Collaboration from M/s. Brugg Kabel AG, Switzerland. The
Company has also successfully completed the rigorous long duration
pre-qualification test
on 220 kV Cable system at an International Laboratory, FGH Engineering
& Test GmbH, Hallenweg, Germany. This gives the Company a firm
marketing ground and the status of being the only few Company in India
to achieve this feat.
FUTURE OUTLOOK
The business environment for Cable industry is showing signs of
industrial and infrastructure growth. The future outlook in terms of
investment in the infrastructure sector, particularly power, is also
good. This indicates that demand for the cable business should improve
further. With Company''s successful venture into Extra High Voltage
(EHV) Cables and presence in Engineering, Procurement and Construction
(EPC) space, Company has an edge in the Cable Industry. The Company has
specific tie-ups in this segment i.e. Foreign Technical Collaboration
with Brugg Kabel AG, Switzerland which will help the Company to
capitalize its proven presence in the Cable and EPC business.
RATING BY CARE
During the year under review, Credit Analysis & Research Ltd (CARE) has
reaffirmed its rating for Long Term bank facilities as "CARE BBB"
(Triple B) and revised rating for the Commercial Paper (CP) / Short
Term Debt programme of the Company as ''CARE A3 '' (A Three Plus) from
"CARE A2" (A Two). Instrument with these rating is considered to have
moderate degree of safety regarding timely payment of financial
obligations. CARE has assigned the rating taking into account KEI''s
long track record of operations, experience of Promoter, its
established market position in cable industry, its wide variety of
products, its diversified and reputed clientele as well as
technological tie- up with Brugg Kabel AG, (Switzerland) for Extra High
Voltage (EHV) cables. Further, CARE has reaffirmed "CARE CGR 3" to the
Corporate Governance practice of the Company.
LISTING OF SHARES
Company''s equity shares are listed at Bombay Stock Exchange Limited
(BSE), National Stock Exchange of India Limited (NSE) and The Calcutta
stock Exchange Limited (CSE).
The Company has also paid its up-to-date listing fees to all the stock
exchanges.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
separate Section titled Report on Corporate Governance has been
included in this Annual Report. Your Directors are pleased to report
that your Company is fully compliant as on March 31, 2014 with the SEBI
Guidelines on Corporate Governance.
DIRECTORS
Mrs. Archana Gupta and Mr. Kishan Gopal Somani retire by rotation at
the ensuing Annual General Meeting under the erstwhile applicable
provisions of section 255 and 256 of the Companies Act, 1956.
With the notification of section 149 of the Companies Act, 2013 and
other applicable provisions of the Act, Mr. Kishan Gopal Somani being
eligible and offering himself for re- appointment, is proposed to be
re-appointed as an Independent Director in terms of section 149 and
other applicable provisions of the Companies Act, 2013, for a term of 5
(Five) consecutive years commencing from 19th September, 2014 to 18th
September, 2019. Further, the Board of Directors of your Company is
seeking appointment of all other/remaining independent directors (who
were appointed as Directors pursuant to the provisions of Companies
Act, 1956 with their period of office liable to determination by
retirement of directors by rotation and were independent in terms of
clause 49 of the Listing Agreement) namely, Mr. Vijay Bhushan, Mr.
Vikram Bhartia and Mr. Pawan Kumar Bholusaria as an independent
directors in terms of section 149 and other applicable provisions of
the Companies Act, 2013, for a term of 5 (Five) consecutive years
commencing from 19th September, 2014 to 18th September, 2019.
CORPORATE SOCIAL RESPONSIBILITY
As part of Corporate Social Responsibility (CSR) initiative your
Company focuses primarily on education and healthcare services which
are essential in promoting sustainable human development and economic
growth. Your Company is making donation to ISKCON Food Relief
Foundation towards their mid day meals project.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
During the year under review, your Company has transferred unclaimed /
unpaid dividend related to financial year ended 2005-06 to the Investor
Education and Protection Fund (IEPF) pursuant to the provisions of
Section 205A of the Companies Act, 1956.
UNPAID / UNCLAIMED DIVIDEND
Pursuant to circular issued by Ministry of Corporate Affairs (MCA) with
respect to Investor Education and Protection Fund (Uploading of
information regarding unpaid and unclaimed amounts lying with
companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your
Company has uploaded on its website www.kei-ind.com as well as on the
Ministry''s website information regarding Unpaid / Unclaimed Dividend
amount lying with the company for the Financial year 2006-07 and
onwards. Accordingly, the details of the unclaimed / unpaid dividend
are available on the website of the company www.kei-ind.com under
section Investor Relations.
DIRECTOR''S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors'' Responsibility Statement, it is
hereby confirmed
a) That in the preparation of the annual accounts for the financial
year ended March 31, 2014, the applicable accounting standards had been
followed;
b) That the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for the year under review;
c) That the directors had 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;
d) That the directors had prepared the accounts for the financial year
ended March 31, 2014 on a ''going concern'' basis;
AUDITORS OF THE COMPANY
Statutory Auditors:
M/s Jagdish Chand & Co., Chartered Accountants (Firm registration
Number: 000129N), auditors of the Company will retire at the conclusion
of the ensuing AGM and are eligible for re-appointment as per consent
and certificate furnished by them under Section 139, 141 of the
Companies Act, 2013 read with the Companies (Audit and Auditors) Rules,
2014.
Cost Auditors:
Your Directors have re-appointed S. Chander & Associates, Cost
Accountants (Membership No. M/9455) to conduct the audit of Cost
Accounts for the financial year 2014-15 pursuant to consent and
certificate furnished by them under Section 139, 141 and 148 of the
Companies Act, 2013 read with the Companies (Audit and Auditors) Rules,
2014. Cost Audit Report for the FY 2012-13 was filed on October 23,
2013.
PARTICULARS OF EMPLOYEES
Information as per Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 is as given below:
Name & Gross Qualification Experience Age
Designation Remuneration
(Rs.in lacs)
Mr. Anil Gupta, 148.51 B.Com 33 Years 55yrs
CMD
Mr. Rajeev Gupta, 52.76 C.A 21 Years 50yrs
Executive Director
(Finance)
Mr. Anil Gupta, CMD is relative of Mrs. Archana Gupta (Director) of
the Company.
PARTICUALRS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREGIN EXCHANGE EARNING AND OUTGO
The information as regards conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under
Section 217(1) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as ANNEXURE and forms an integral part of the
report.
FIXED DEPOSITS
There are no overdue fixed deposits as on March 31, 2014.
ACKNOWLEDGEMENTS
Your Directors place on record their sincere appreciation for
significant contribution made by employees through their dedication,
hard work and commitment.
The Board places on record its appreciation for the continued
co-operation and support extended to the Company by Banks, Stock
Exchanges, NSDL and CDSL. The Board wishes to express its grateful
appreciation for the assistance and co-operation received from vendors,
customers, banks, financial institutions, Central and State Government
bodies, dealers, and other business associates. The Board deeply
acknowledges the trust and confidence placed by the consumers of the
Company and, above all, the shareholders.
Mar 31, 2013
To The Members The Directors take pleasure in presenting their 21st Annual Report for the year ended March 31, 2013. Briefly stated the Financial Results of operation are: - (Rs. In lacs) Particulars Year ended Year ended March 31, 2013 March 31, 2012 Revenue from Operations (Gross) and Other Income 181463.80 1,85,457.64 Profit before Finance Costs, 17,287.46 15,170.44 Depreciation and Amortisation Expenses and Tax Expenses Less: Finance Cost 10,935.37 9,616.23 Depreciation and Amortisation Expenses 2,044.48 1,954.49 Profit Before Tax 4,307.61 3,599.72 Tax Expenses Current Tax 850.98 729.18 Deferred tax 822.85 438.75 Short/(Excess) Provision 0.08 (1.09) - Earlier Years Profit for the Year 2,633.70 2,432.88 Add: Balance brought forward from last year's account 14,783.63 12,506.34 Amount available for Appropriations 17,417.33 14,939.22 Appropriations : Proposed Dividend on Equity Shares (Dividend of Rs. 0.20 per equity share) 140.47 133.87 Dividend Distribution Tax on Proposed Dividend 23.87 21.72 APPROPRIATIONS DIVIDEND & APPROPRIATIONS: During the year under review, your Directors have recommended a dividend of Rs. 0.20/- per equity share (i.e. @ 10%) on the Equity Shares of face value of Rs. 2/- each for the Financial Year ended March 31, 2013, which if approved by the members at the forthcoming Annual General Meeting, will be paid to: - Those equity shareholders whose names appear in the register of members on June 21, 2013. - Those whose names as beneficial owners are furnished by National Securities Depository Limited and Central Depository Services (India) Limited. REVIEW OF OPERATIONS During the year, turnover of your Company remained flat and there was slight decline from Rs. 185295.16 lacs to Rs. 181228.30 lacs. During the year, turnover from Cables stood at Rs. 129482.16 lacs as compared to Rs. 143159.38 lacs in 2011-12, showing a decline of 9.55%. Stainless Steel Wire Products contributed a turnover of Rs. 8305.69 lacs in 2012- 13 as compared to Rs. 10,068.29 lacs in 2011-12. Winding wire, Flexible & House Wire contributed Rs. 26647.77 lacs in 2012-13 as against Rs. 21139.76 lacs in 2011-12, showing strong growth of 26%. During the year under review, Operating Profit of the Company has improved from Rs. 13053.44 lacs to Rs. 15007.48 lacs while Profit Before Tax stood at Rs. 4307.61 lacs and Net profit at Rs. 2633.70 lacs respectively. Your Company was able to bag various prestigious orders of elastomeric cables, speciality cables apart from normal cables & wires which contributed towards achievement of turnover. The Company has already marked its presence in Extra High Voltage (EHV ) Cable segment ranging from 66kV to 220kV and will continue to further strengthen its position in this segment with Technical Collaboration from M/s. Bragg Kabel AG, Switzerland. The Company has also successfully completed the rigorous long duration pre-qualification test on 220 kV Cable system at an International Laboratory, FGH Engineering & Test GmbH, Hallenweg, Germany. This gives the Company a firm marketing ground and the status of being among the few Companies in India to achieve this feat. FUTURE OUTLOOK The business environment for Cable industry is showing signs of industrial and infrastructure growth. The future outlook in terms of investment in the infrastructure sector, particularly power, is also good. This indicates that demand for the cable business should improve further. With Company's successful venture into Extra High Voltage (EHV) Cables and presence in Engineering, Procurement and Construction (EPC) space, Company has an edge in the Cable Industry. The Company has specific tie-ups in this segment i.e. Foreign Technical Collaboration with Brugg Kabel AG, Switzerland which will help the Company to capitalize its proven presence in the Cable and EPC business. RATING BY CARE During the year under review, Credit Analysis & Research Ltd. (CARE) has reaffirmed its rating 'CARE A2' (A Two) for the Commercial Paper (CP) / Short Term Debt programme of the Company and "CARE BBB" (Triple B) and 'CARE A2' (A Two) for Long Term & Short Term Bank Facilities of the Company in accordance with Basel II norms. Instrument with this rating is considered to have strong degree of safety regarding timely payment of financial obligation. CARE has assigned the rating taking into account KEI's long track record of operations, its established market position in cable industry, its wide variety of products, its diversified and reputed clientele as well as technological tie-up with Brugg Kabel AG, (Switzerland) for Extra High Voltage (EHV) cables. Further, CARE has reaffirmed "CARE CGR 3" to the Corporate Governance practice of the Company. LISTING OF SHARES Company's equity shares are listed at BSE Limited (BSE), National Stock Exchange of India Limited (NSE) and The Calcutta Stock Exchange Limited (CSE). The Company has also paid its up-to-date listing fees to all the stock exchanges. CORPORATE GOVERNANCE Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a separate Section titled Report on Corporate Governance has been included in this Annual Report. Your Directors are pleased to report that your Company is fully compliant as on March 31, 2013 with the SEBI Guidelines on Corporate Governance. DIRECTORS Retirement by Rotation: In accordance with the requirements of the Companies Act, 1956 and the Articles of Association of the Company, Mr. Pawan Bholusaria and Mr. Rajeev Gupta, Directors of the Company, retire by rotation at the forthcoming Annual General Meeting. Both the Directors are eligible and have offered themselves for re-appointment at the forthcoming AGM. Re-appointment of Executive Director: The Board of Directors of your Company on recommendation of Remuneration & Compensation Committee have decided to re-appoint Mr. Anil Gupta, as Chairman-cum-Managing Director of the Company for a period of three years w.e.f. July 01, 2013 till June 30, 2016, on the terms and conditions as stipulated in the Resolution & Explanatory Statement forming part of the Notice of the ensuing Annual General Meeting. CORPORATE SOCIAL RESPONSIBILITY As part of Corporate Social Responsibility (CSR) initiative your Company focuses primarily on education and healthcare services which are essential in promoting sustainable human development and economic growth. Your Company is making donation to ISKCON Food Relief Foundation towards their mid day meals project. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF) During the year under review, your Company has transferred unclaimed / unpaid dividend for the financial year ended 2004-05 to the Investor Education and Protection Fund (IEPF). UNPAID / UNCLAIMED DIVIDED Pursuant to circular issued by Ministry of Corporate Affairs (MCA) with respect to Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your Company has uploaded on its website www.kei-ind.com as well as on the Ministry's website information regarding Unpaid / Unclaimed Dividend amount lying with the company for the Financial year 2005-06 and onwards. Accordingly, the details of the unclaimed / unpaid dividend will be available on the website of the company www.kei-ind.com under section Investor Relations. DIRECTOR'S RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors' Responsibility Statement, it is hereby confirmed a) That in the preparation of the annual accounts for the financial year ended March 31, 2013, the applicable accounting standards had been followed; b) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review; c) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions ofthe Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) That the directors had prepared the accounts for the financial year ended March 31, 2013 on a 'going concern' basis; AUDITORS OF THE COMPANY Statutory Auditors: M/s Jagdish Chand & Co., Chartered Accountants, auditors of the Company will retire at the conclusion of the ensuing AGM and are eligible for re-appointment as per certificate furnished by them under Section 224 (1B) of the Companies Act, 1956. Cost Auditor: Your Directors have re-appointed S. Chander & Associates, Cost Accountants to conduct the audit for the financial year 2013-14. Cost Audit Report for the FY 2011-12 was filed on February 26, 2013 (within the prescribed time limit as extended / allowed by Ministry of Corporate Affairs). PARTICULARS OF EMPLOYEES Information as per Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is as given below: Name & Gross Qualification Experience Age Designation Remuneration (Rs.in lacs) Mr. Anil Gupta, 228.90 B.Com 32 Years 54yrs CMD Mr. Rajeev Gupta, 51.62 C.A 20 Years 49yrs Executive Director (Finance) Mr. Anil Gupta, CMD is relative of Mrs. Archana Gupta (Director) of the Company. PARTICUALRS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREGIN EXCHANGE EARNING AND OUTGO The information as regards conservation of energy, technology absorption and foreign exchange earnings and outgo as required under Section 217(1) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as ANNEXURE and forms an integral part of the report. FIXED DEPOSITS There are no overdue fixed deposits as on March 31, 2013. ACKNOWLEDGMENTS Your Directors place on record their sincere appreciation for significant contribution made by employees through their dedication, hard work and commitment. The Board places on record its appreciation for the continued co-operation and support extended to the Company by Banks, Stock Exchanges, NSDL and CDSL. The Board wishes to express its grateful appreciation for the assistance and co-operation received from vendors, customers, banks, financial institutions, Central and State Government bodies, dealers, and other business associates. The Board deeply acknowledges the trust and confidence placed by the consumers of the Company and, above all, the shareholders. For and on behalf of the Board Place: New Delhi (ANIL GUPTA) Date : May 22, 2013 Chairman-cum- Managing Director
Mar 31, 2012
The Directors take pleasure in presenting their 20th Annual Report for
the year ended March 31, 2012. Briefly stated the Financial Results of
operation are: -
(Rs. In lacs)
Particulars Year ended Year ended
March 31, 2012 March 31, 2011
Revenue from Operations 1,85,457.64 1,26,366.71
(Gross) and Other Income
Profit before Finance Costs, 15,170.44 9,374.10
Depreciation and Amortization
Expenses and Tax Expenses
Less: Finance Costs 9,616.23 5,931.54
Depreciation and 1,954.49 1,661.00
Amortization Expenses
Profit Before Tax 3,599.72 1,781.56
Tax Expenses
- Current Tax 729.18 356.78
- Deferred tax 438.75 366.82
- Short /(Excess) Provision (1.09) 2.14
Earlier Years
Profit for the Year 2,432.88 1,055.82
Add: Balance brought forward 12,506.34 11,606.11
from last year's account
Amount available for 14,939.22 12,661.93
Appropriations
Appropriations:-
Proposed Dividend on Equity 133.87 133.87
Shares (Dividend of Rs. 0.20
per equity share)
Dividend Distribution Tax on 21.72 21.72
Proposed Dividend
During the year, turnover from Cables stood at Rs. 143,159.38 lacs as
compared to Rs. 98,967.72 lacs in 2010-11, showing a strong growth of
44.65%. Stainless Steel Wire Products contributed a turnover of
10,068.29 lacs in 2011-12 as compared to Rs. 8656.82 lacs in 2010- 11.
Winding wire, Flexible & House Wire contributed Rs. 21,139.76 lacs in
2011-12 as against Rs. 15,733.52 lacs in 2010-11. During the year under
review, Profit Before Tax was Rs. 3,599.72 lacs and Net profit was Rs.
2,432.88 lacs.
APPROPRIATIONS DIVIDEND & APPROPRIATIONS:
During the year under review, your Directors have recommended a
dividend of Rs. 0.20/- per equity share (i.e. @ 10%) on the Equity
Shares of face value of Rs. 2/- each for the Financial Year ended March
31, 2012, which if approved by the members at the forthcoming Annual
General Meeting, will be paid to:
- Those equity shareholders whose names appear in the register of
members on September 13, 2012.
- Those whose names as beneficial owners are furnished by National
Securities Depository Limited and Central Depository Services (India)
Limited.
REVIEW OF OPERATIONS
During the year 2011-12, turnover of your Company increased from Rs.
125767.90 lacs to Rs. 185295.16 lacs, showing growth of over 47%. During
its first full year of operation, Extra High Voltage (EHV) Cable
segment contributed more than Rs. 15000 lacs. Your Company was able to
bag various prestigious orders of elastomeric cables, speciality cables
and EHV cables apart from normal cables & wires which contributed
towards achievement of turnover. The Company has already marked its
presence in Extra High Voltage (EHV) Cable segment ranging from 66kV to
220kV and will continue to further strengthen its position in this
segment with Technical Collaboration from M/s. Brugg Kabel AG,
Switzerland. The Company has also successfully completed the rigorous
long duration pre-qualification test on 220 kV Cable system at an
International Laboratory, FGH Engineering & Test GmbH, Hallenweg,
Germany. This gives the Company a firm marketing ground and the status
of being the only few Company in India to achieve this feat. Having
marked its presence for EHV Cables up to 220 kV, the Company is
preparing grounds for venturing into 400 kV segment.
FUTURE OUTLOOK
The business environment for Cable industry is showing signs of
industrial and infrastructure growth. The future outlook in terms of
investment in the infrastructure sector, particularly power, is also
good. This indicates that demand for the cable business should improve
further. With Company's successful venture into Extra High Voltage
(EHV) Cables and presence in Engineering, Procurement and Construction
(EPC) space, Company has an edge in the Cable Industry. The Company has
specific tie-ups in this segment i.e. Foreign Technical Collaboration
with Brugg Kabel AG, Switzerland which will help the Company to
capitalize its proven presence in the Cable and EPC business.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCB)
The Company had raised USD 36,000,0000 (thirty six million) by way of
allotment of 1% Foreign Currency Convertible Bonds (FCCB) on November
29, 2006. After conversion and buyback / repurchase of FCCBs totaling
USD 19,400,000 from time to time, FCCBs of USD 16,600,000 were
outstanding for redemption / payment on maturity date i.e. November 30,
2011. Your Company has successfully redeemed the outstanding Foreign
Currency Convertible Bonds (FCCBs) of USD 16,600,000 together with
redemption premium and interest on maturity date. With this payment,
the entire FCCBs liability has been extinguished. Your Company made the
repayment of FCCBs as per schedule, in line with the terms and
conditions of the FCCB Offering Circular, underlining the company's
strong fundamentals and values. There is no FCCB outstanding for
redemption / conversion as on March 31, 2012.
EMPLOYEES STOCK OPTION SCHEME
The Company had framed KEI Employee Stock Option Scheme 2006 ("KEI
ESOS 2006") in accordance with SEBI (Employees Stock Option Scheme
&Employee Stock Purchase Scheme) Guidelines, 1999. The Remuneration and
Compensation Committee of the Board of Directors of the Company at
their meeting held on May 05, 2012 has cancelled KEI Employee Stock
Option Scheme 2006 ("KEI ESOS 2006"). During the year, no fresh
Stock Options were granted under KEI ESOS 2006. Further, there is no
Stock Option due / pending for exercise by the eligible employee(s).
Consequent to cancellation of Stock Option Scheme, no further Stock
Option will be granted under KEI ESOS 2006.
RATING BY CARE
During the year under review, Credit Analysis & Research Ltd. (CARE)
has revised the rating from 'CARE A2 ' (A Two Plus) to 'CARE
A2' (A Two) for the Commercial Paper (CP) / Short Term Debt programme
of the Company and "CARE BBB" (Triple B) from "CARE BBB "
(Triple B Plus) and A2 (A Two) from A2 (A Two Plus) for Long Term &
Short Term Bank Facilities of the Company in accordance with Basel II
norms. Instrument with this rating is considered to have strong degree
of safety regarding timely payment of financial obligation. CARE has
assigned the rating taking into account KEI's long track record of
operations, its established market position in cable industry, its wide
variety of products, its diversified and reputed clientele as well as
technological tie-up with Brugg Kabel AG, (Switzerland) for Extra High
Voltage (EHV) cables. Further, CARE has reaffirmed "CARE CGR 3" to
the Corporate Governance practice of the Company.
LISTING OF SHARES
Company's equity shares are listed at Bombay Stock Exchange Limited
(BSE), National Stock Exchange of India Limited (NSE) and The Calcutta
stock Exchange Limited (CSE).
As on date 30,00,000 equity shares are pending for listing at CSE. The
Company has also paid its up-to-date listing fees to all the stock
exchanges. Further, the Board of Directors of your Company has approved
voluntary de- listing of Equity Shares of the Company from CSE. The
Equity Shares will however be continued to be listed and traded on BSE
and NSE, having nation-wide trading terminals, and therefore delisting
from CSE will not have any effect on the trading volume of your
Company's Shares.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
separate Section titled Report on Corporate Governance has been
included in this Annual Report. Your Directors are pleased to report
that your Company is fully compliant as on March 31, 2012 with the SEBI
Guidelines on Corporate Governance.
DIRECTORS Retirement by Rotation:
In accordance with the requirements of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Vijay Bhushan and Mr.
Vikram Bhartia, Directors of the Company, retire by rotation at the
forthcoming Annual General Meeting. Both the Directors are eligible and
have offered themselves for re-appointment at the forthcoming AGM.
CORPORATE SOCIAL RESPONSIBILITY
As part of Corporate Social Responsibility (CSR) initiative your
Company focuses primarily on education and healthcare services which
are essential in promoting sustainable human development and economic
growth. KEI is making donation to ISKCON Food Relief Foundation
towards their mid day meals project.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of the Section 205A and 205C of the
Companies Act, 1956, your Company has transferred the following amounts
to the Investor Education and Protection Fund (IEPF):
- Rs. 60,079/- lying unclaimed / unpaid with the Company for a period of
seven years after the declaration of Dividend for the financial year
ended 2004-05.
UNPAID / UNCLAIMED DIVIDED
Pursuant to circular issued by Ministry of Corporate Affairs (MCA) with
respect to Investor Education and Protection Fund (Uploading of
information regarding unpaid and unclaimed amounts lying with
companies) Rules, 2012 vide G.S.R. 342 (E) dated May 10, 2012, your
Company will upload on its website www.kei-ind.com as well as on the
Ministry's website information regarding Unpaid / Unclaimed Dividend
amount lying with the company for the Financial year 2005-06 and
onwards. Accordingly, the details of the unclaimed / unpaid dividend
will be available on the website of the company www.kei-ind.com under
section Investor Relations.
DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors' Responsibility Statement, it is
hereby confirmed
a) That in the preparation of the annual accounts for the financial
year ended March 31, 2012, the applicable accounting standards had been
followed;
b) That the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for the year under review;
c) That the directors had 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;
d) That the directors had prepared the accounts for the financial year
ended March 31, 2012 on a 'going concern' basis;
AUDITORS OF THE COMPANY Statutory Auditors:
M/s Jagdish Chand & Co., Chartered Accountants, auditors of the Company
will retire at the conclusion of the ensuing AGM and are eligible for
re-appointment as per certificate furnished by them under Section 224
(1B) of the Companies Act, 1956.
Cost Auditor:
As per the directive of Central Government pursuant to the provisions
of Section 233B of the Companies Act, 1956, your Directors have
re-appointed S. Chander & Associates, Cost Accountants to conduct the
audit for the financial year ended March 31, 2013. Cost Audit Report
for the FY 2010-11 was filed on September 21, 2011 (within the
prescribed time limit).
PARTICULARS OF EMPLOYEES
Information as per Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 is as given below:
Name & Gross Qualification Experience Age
Designation Remuneration
(Rs. lacs)
Mr. Anil
Gupta, 191.38 B.Com 31 Years 51yrs
CMD
Mr. Anil Gupta, CMD is relative of Mrs. Archana Gupta (Director) of the
Company.
PARTICUALRS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREGIN EXCHANGE EARNING AND OUTGO
The information as regards conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under
Section 217(1) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as ANNEXURE and forms an integral part of the
report.
FIXED DEPOSITS
There are no overdue fixed deposits as on March 31, 2012.
ACKNOWLEDGMENTS
Your Directors place on record their sincere appreciation for
significant contribution made by employees through their dedication,
hard work and commitment.
The Board places on record its appreciation for the continued
co-operation and support extended to the Company by Banks, Stock
Exchanges, NSDL and CDSL. The Board wishes to express its grateful
appreciation for the assistance and co-operation received from vendors,
customers, banks, financial institutions, Central and State Government
bodies, dealers, and other business associates. The Board deeply
acknowledges the trust and confidence placed by the consumers of the
Company and, above all, the shareholders.
For and on behalf of the Board
Place : New Delhi (ANIL GUPTA)
Date : August 14, 2012 Chairman-cum-
Managing Director
Mar 31, 2011
To The Members
The Directors take pleasure in presenting their 19th Annual Report for
the year ended March 31, 2011. Briefly stated the Financial Results of
operation are: -
(Rs. In lacs)
Particulars Year ended Year ended
March 31, 2011 March 31, 2010
Sales and other income 126272.49 98789.42
Profit before interest,
Depreciation and tax 9281.78 7633.27
Less: Financial Charges (Net) 5832.10 4439.60
Depreciation 1661.00 1467.64
Profit / (Loss) before tax 1788.68 1726.03
Provision for Taxation
ÃCurrent Tax 363.90 298.00
ÃDeferred tax 366.82 0.00
Profit / (Loss) after tax 1057.96 1428.03
Add / (Less) Taxation for
earlier years 2.14 4.79
Net Profit 1055.82 1423.24
Add: Balance brought forward
from last year's account 11606.11 10331.98
Amount available for
Appropriations 12661.93 11755.22
Appropriation:
Proposed Dividend 133.87 127.87
Provision for Taxation on
Proposed Dividend 21.72 21.24
Balance Carried to Balance Sheet 12506.34 11606.11
During the year turnover of Cables was Rs. 98995.96 lacs as compared to
Rs. 77341.11 lacs in 2009-10, showing strong growth @ 28%. The turnover
of Stainless Steel Wire Products contributed Rs. 8713.38 lacs in
2010-11, Winding, Flexible & House Wire contributed Rs. 15733.52 lacs
in 2010-11 as against Rs. 12365.64 lacs in 2009-10. During the year
under review, Profit before tax and Profit after tax was Rs. 1788.68
lacs and Rs. 1057.96 lacs respectively while Net profit was Rs. 1055.82
lacs.
APPROPRIATIONS
Dividend:
During the year under review, your Directors have recommended a
dividend of Rs. 0.20/- per equity share (i.e. @ 10%) on the Equity
Shares of face value of Rs. 2/- each for the Financial Year ended March
31, 2011, which if approved by the members at the forthcoming Annual
General Meeting, will be paid to:
- Those equity shareholders whose names appear in the register of
members on September 15, 2011.
- Those whose names as beneficial owners are furnished by National
Securities Depository Limited and Central Depository Services (India)
Limited.
Transfer to reserves and surplus:
During the year, Company has cancelled 40,00,000 Warrants due to
non-exercise of conversion options by Warrant holders and forfeited Rs.
280.00 lacs received as application money against these warrants which
has been transferred to Capital Reserve Account.
REVIEW OF OPERATIONS
Expansion at Chopanki Plant:
During the second half of financial year 2010-11, Company had completed
expansion at its Chopanki Plant for manufacturing of Extra High Voltage
(EHV) Cables ranging from 66kV to 220kV. The Company had inaugurated
its Extra-High Voltage (EHV) Cable manufacturing facility at its Plant
at Chopanki, Distt. Alwar Rajasthan on November 02, 2010.
This facility is under a Technical Collaboration Agreement with M/s.
Brugg Kabel AG, Switzerland - a pioneer in manufacturing high voltage /
extra high voltage cables - along with jointing and cable accessories
up to 500kV voltage grade. The Technical Collaboration agreement will
allow the Company complete know- how transfer which shall include
design, testing, techniques, training of its manufacturing / design
personnel in manufacturing of cables along with jointing techniques as
also complete EHV system design of EHV Cables. With this technology
back-up, the collaboration will also help the Company making its
presence in extra high voltage segment by securing contracts from
various public utilities (Central/State) as also private segment.
Engineering, Procurement and Construction (EPC):
The Company has marked its presence into Engineering, Procurement and
Construction (EPC) space by bagging various prestigious orders for
survey, supply of materials, erection, testing & commissioning of 33kV
& 11kV substation and distribution lines in power distribution segment.
Under this segment, Company will be tapping both Government and Private
Sector clients on turn-key basis however there will be more focus in
Government Power Utility.
FUTURE OUTLOOK
With Company's successful venture into Extra High Voltage (EHV) Cables
and presence in Engineering, Procurement and Construction (EPC) space,
Company has an edge in the Cable Industry. The Company has specific
tie-ups in this segment i.e. Foreign Technical Collaboration with
Brugg Kabel AG, Switzerland which will help the Company to capitalize
its proven presence in the Cable and EPC business.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs)
The Company raised USD 36,000,0000 (thirty six million) by way of
allotment of 1% Foreign Currency Convertible Bonds (FCCB) due 2011 in
the financial Year 2006-07. The Bond has a maturity of 5 years and one
day. The conversion price has been reset downward at Rs. 71/- per share
as per reset conversion clause in the terms & conditions of FCCB issue.
As on March 31, 2011, 3,320 Bonds of USD 5000 each are outstanding for
conversion.
The Company has duly paid the semi-annual interest payable on
outstanding Bonds on respective due dates. Unless, the Bonds have been
previously redeemed, repurchased and cancelled or converted, the
Company shall redeem the Bonds on November 30, 2011 (the "Maturity
DateÃ) equal to the outstanding principal amount of a Bond together
with redemption premium and accrued but unpaid interest thereon to the
Maturity Date. All outstanding bonds on the date of redemption would be
redeemed at a price of USD 7,277 per Bond, providing a Yield to
Maturity (YTM) of 8.5 % compounded semi-annually. The bonds are listed
and traded at Luxembourg Stock Exchange.
EMPLOYEES STOCK OPTION SCHEME
The Company has KEI Employee Stock Option Scheme 2006 ("KEI ESOS 2006Ã)
which was set up so as to offer and grant, for the benefit of employees
(excluding promoters) of the Company, who are eligible under SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999, Options of the Company, in one or more tranches, and
on such terms and conditions as may be fixed or determined by the Board
/ Committee, in accordance with the provisions of law or guidelines
issued by the relevant authorities in this regard. The Remuneration and
Compensation Committee of the Board has not granted any fresh Options
during the year ended March 31, 2011.
RATING BY CARE
During the year under review, Credit Analysis & Research Ltd (CARE) has
reaffirmed PR2 (equivalent to CARE A2 revised as per SEBI Circular)
rating for the Commercial Paper (CP) / Short Term Debt programme of the
Company and "CARE BBB Ã (Triple B Plus) and PR2 (PR Two Plus) for Long
Term & Short Term Bank Facilities of the Company in accordance with
Basel II norms. Instrument with this rating would have adequate
capacity for timely payment of short-term debt obligations. CARE has
reaffirmed this rating taking into account KEI's vast experience in the
cable industry, proven track record, established market position,
diversified and reputed clientele and continued focus on power sector
development by Government of India. Further, CARE has reaffirmed "CARE
CGR 3Ã to the Corporate Governance practice of the Company.
REGISTRATION OF BRANDS
During the financial year Company has received Trade Mark registration
for its House Wire brands viz. "Conflameà and "Banfireà from Registrar
of Trade marks, Government of India. Further, Company's one of its
brand name "Empowerà has also been registered under Trade Marks Act,
1999.
While Company's Brand Names viz. "Conflameà and "Banfireà is our own
invented Trade marks and has been derived by juxtaposition of various
English words, "Empowerà represents strong presence of KEI in power &
other sectors. The above brand names have uniqueness and distinctive
character of its own and are clearly capable of distinguishing our
goods / brands from those of others.
SUPERBRAND STATUS
Your Company has been conferred with the prestigious Superbrand Status.
Superbrand is a Global Standard of Brand Excellence which enables
significant emotional and physical advantage over competitors. It pays
tribute to world's leading brands selected by consumers and experts. It
provides access to globally respected accreditation. It boosts up brand
image as well as business volume and values.
INCREASE IN PAID-UP SHARE CAPITAL
During the year under review, the Share Allotment Committee of the
Board at its meeting held on February 25, 2011 allotted 30,00,000
equity shares of Rs. 2/- each upon conversion of Warrants to Promoter /
Promoter Group. Due to exercise of conversion of Warrants, the equity
share capital of the Company increased from 12,78,74,876 to
13,38,74,876 consisting of 6,69,37,438 equity shares of Rs. 2/- each.
LISTING OF SHARES
Company's equity shares are listed at Bombay Stock Exchange Limited
(BSE), National Stock Exchange of India Limited (NSE) and The Calcutta
stock Exchange Limited (CSE). As on date 30,00,000 equity shares
allotted on February 25, 2011 are pending listing with CSE. The Company
has also paid its up-to-date listing fees to all the stock exchanges.
BSE & NSE have nation-wide trading terminals and therefore provide full
liquidity to investors.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
separate Section titled Report on Corporate Governance has been
included in this Annual report. Your directors are pleased to report
that your Company is fully compliant as on March 31, 2011 with the SEBI
Guidelines on Corporate Governance.
DIRECTORS
Retirement by Rotation:
In accordance with the requirements of the Companies Act, 1956 and the
Articles of Association of the Company, Mrs. Archana Gupta and Mr.
K.G.Somani, Directors of the Company, retire by rotation at the
forthcoming Annual General Meeting. Both the Directors are eligible and
have offered themselves for re-appointment at the forthcoming AGM.
Re-appointment and increase / revision in remuneration of Executive
Directors:
The Board of Directors of your Company has re-appointed Mr. Rajeev
Gupta as Executive Director (Finance) for a period of 5 years w.e.f.
April 01, 2011 to March 31, 2016. Further, on review of duties and
responsibilities assigned to Mr. Anil Gupta, CMD and the remuneration
structure prevalent in the Industry, the Board of Directors of your
Company on recommendation of Remuneration & Compensation Committee have
decided to increase remuneration payable to Mr. Anil Gupta w.e.f.
August 01, 2011 to June 30, 2013.
DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors' Responsibility Statement, it is
hereby confirmed
a) That in the preparation of the annual accounts for the financial
year ended March 31, 2011, the applicable accounting standards had been
followed;
b) That the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for the year under review;
c) That the directors had 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;
d) That the directors had prepared the accounts for the financial year
ended March 31, 2011 on a 'going concern' basis;
AUDITORS OF THE COMPANY
Statutory Auditors:
M/s Jagdish Chand & Co., Chartered Accountants, auditors of the Company
will retire at the conclusion of the ensuing AGM and are eligible for
reappointment as per certificate furnished by them under Section 224
(1B) of the Companies Act, 1956.
Cost Auditor:
As per the directive of Central Government pursuant to the provisions
of Section 233B of the Companies Act, 1956, your Directors have
re-appointed S. Chander & Associates, Cost Accountants to conduct the
cost audit for the year ended March 31, 2012.
PARTICULARS OF EMPLOYEES
Information as per Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 is as given below:
Name & Gross Qualification Experience Age
Designation Remuneration
(Rs.in lacs)
Mr. Anil Gupta, 129.62 B.Com 30 Years 50yrs
CMD
Note: Managerial remuneration paid to Mr. Anil Gupta during financial
year 2010-11 includes Rs. 32.00 Lacs paid as arrears of remuneration
related to period 01.08.2009-31.03.2010 pursuant to approval received
from Ministry of Corporate Affairs (MCA).
Mr. Anil Gupta, CMD is relative of Mrs. Archana Gupta (Director) of the
Company.
PARTICUALRS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO
The information as regards conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under
Section 217(1) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as Annexure and forms an integral part of the
report.
FIXED DEPOSITS
There are no overdue fixed deposits as on March 31, 2011.
ACKNOWLEDGMENTS
Your Directors place on record their sincere appreciation for
significant contribution made by employees through their dedication,
hard work and commitment.
Your Directors also acknowledge the support extended by the bankers,
government agencies, shareholders and investors at large and look
forward to having the same support in our endeavour to grow
consistently.
For and on behalf of the Board
Place : New Delhi (ANIL GUPTA )
Date : August 08, 2011 Chairman-cum-
Managing Director
Mar 31, 2010
The Directors take pleasure in presenting their 18th Annual Report for
the year ended March 31, 2010. Briefly stated the financial results of
operation are: -
(Rs. in Lacs)
Particulars 01.04.09 to 01.04.08 to
31.03.10 31.03.09
Sales and other income 98789.42 108780.88
Profit before interest,
Depreciation and tax 7633.27 6208.25
Less: Financial Charges (Net) 4439.60 5661.46
Depreciation 1467.64 1157.49
Profit / (Loss) before tax 1726.03 (610.70)
Provision for Taxation
- Current Tax 298.00 1.05
- Fringe Benefit Tax - 37.00
- Deferred Tax - (882.60)
Profit / (Loss) after tax 1428.03 233.85
Add / (Less) Taxation for
earlier years (4.79) (109.17)
Net Profit 1423.24 124.68
Add: Balance brought forward
from last years account 10331.98 10349.88
Amount available for
Appropriations 11755.22 10474.56
Appropriation:
Proposed Dividend 127.87 121.87
Provision for Taxation on
Proposed Dividend 21.24 20.71
Balance Carried to
Balance Sheet 11606.11 10331.98
During the year turnover of cables was Rs.77341.11 lacs as compared to
Rs. 87577.71 lacs in 2008-09. Stainless Steel Wire Products contributed
Rs.5696.88 lacs in 2009-10 as compared to Rs. 7795.90 lacs in 2008-09.
Winding, Flexible & House Wire contributed Rs.12365.64 lacs in 2009-10
as against Rs.7643.54 lacs in 2008-09. Profit after tax is Rs. 1428.03
lacs during 2009- 10 as compared to Rs. 233.85 lacs during 2008-09.
DIVIDEND & APPROPRIATIONS
During the year under review, your Directors have recommended a
dividend of Re.0.20/- per equity share (i.e. @ 10%) on the Equity
Shares of face value of Rs.2/- each for the financial year ended 31st
March, 2010, which if approved by the members at the forthcoming Annual
General Meeting, will be paid to:
- Those equity shareholders whose names appear in the register of
members on August 28, 2010.
- Those whose names as beneficial owners are furnished by National
Securities Depository Limited and Central Depository Services (India)
Limited.
REVIEW OF OPERATIONS
The Board of Directors of your Company on 05.01.2010, approved a
foreign ÃTechnical Collaborationà agreement with M/s Brugg Kabel AG
(hereinafter referred to as Brugg), Switzerland based 110 yrs. old
group to manufacture Extra High Voltage (EHV) cables ranging from 66kV/
110kV/132kV/ 220kV at its manufacturing facilities located at Bhiwadi &
Chopanki, district, Alwar, Rajasthan. M/s Brugg Kabel AG, Switzerland
is a pioneer in manufacturing High Voltage / Extra High Voltage cables
- along with jointing and cable accessories up to 550kV voltage grade.
Besides this, Brugg specializes in turnkey systems/ design of Extra
High Voltage cable projects with world over installation. With this
Technical Collaboration, KEI has achieved another milestone in its
growth history as now it will join the elite group of few power cable
manufacturers worldwide equipped to manufacture cables beyond 66kV
The above Technical Collaboration agreement will allow KEI complete
know-how transfer which shall include design, manufacturing, testing,
techniques, training of its manufacturing / design personnel in
manufacturing of cables along with jointing techniques as also complete
EHV system design (design/ manufacture/installation/testing &
commissioning) of EHV cables. With this full technology back-up, the
collaboration will also help KEI in making its presence in Extra High
Voltage cable segment by securing contracts from various public
utilities (Central/ State) as also private segments.
With very restricted capacity presently existing in 132kV / 220kV
segments (90% imports) this step taken by KEI will definitely ease the
burden on imports as also bringing down the project costs.
The Company expects Commercial production of EHV Cables at its Plant at
Chopanki, Dist. Alwar, Bhiwadi (Rajasthan) by September 2010.
FOREIGN CURRENCY CONVERTIBLE BONDS (FCCB)
The Company raised USD 36,000,0000 (thirty six million) by way of
allotment of 1% Foreign Currency Convertible Bonds (FCCB) due 2011 in
the financial Year 2006-07. The Bond has a maturity of 5 years and one
day. The conversion price has been reset downward at Rs. 71/- per share
as per reset conversion clause in the terms & conditions of FCCB issue.
Out of 7,200 Nos. bonds of face value of USD 5,000 each, 670 Bonds
were converted into equity shares of face value of Rs. 2/- each during
financial year 2007-08 and 3210 Bonds were re-purchased during
financial year 2008-09 & 2009-10 in accordance with RBI Circular A.P.
(DIR Series) Circular No. 39 dated December 8, 2008 read with ECB
Guidelines. As on March 31, 2010, 3,320 Bonds are outstanding for
conversion.
The Company has duly paid the semi-annual interest payable on
outstanding Bonds on respective due dates. Unless, the Bonds have been
previously redeemed, repurchased and cancelled or converted, the
Company shall redeem the Bonds on 30 November 2011 (the ÃMaturity
DateÃ) equal to the outstanding principal amount of a Bond together
with redemption premium and accrued but unpaid interest thereon to the
Maturity Date. All outstanding bonds on the date of redemption would be
redeemed at a price of USD 7,277 per Bond, providing a Yield to
Maturity (YTM) of 8.5 % compounded semi-annually. The bonds are listed
and traded at Luxembourg Stock Exchange.
GLOBAL DEPOSITORY RECEIPTS (GDR)
The Global Depository Receipts (GDR) issued by the Company are listed
and traded at Luxembourg Stock Exchange. As on March 31, 2010 total
outstanding GDR is 500 representing same number of equity shares of
Rs.2/- each.
EMPLOYEES STOCK OPTION SCHEME
The Company has KEI Employee Stock Option Scheme 2006 (ÃKEI ESOS 2006Ã)
which was set up so as to offer and grant, for the benefit of employees
(excluding promoters) of the Company, who are eligible under SEBI
(Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999, Options of the Company, in one or more tranches, and
on such terms and conditions as may be fixed or determined by the Board
/ Committee, in accordance with the provisions of law or guidelines
issued by the relevant authorities in this regard.
The Remuneration and Compensation Committee of the Board has not
granted any fresh Options during the year ended March 31, 2010. Total
Options outstanding as on March 31, 2010 is NIL
Details of Options granted under KEI ESOS 2006 are annexed to this
report in accordance with SEBI (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 and any modifications
thereto as Annexure A.
RATING BY CARE
During the year under review Credit Analysis & Research Ltd (CARE) has
assigned PR2+ (PR Two Plus) rating to the
Commercial Paper (CP) / Short Term Debt programme of the Company and
"CARE CGR 3Ã to the Corporate Governance practice of the Company.
Further, CARE has assigned ÃCARE BBB+" (Triple B Plus) and ÃPR 2+ (PR
Two Plus) rating to the Long Term & Short Term Bank Facilities of the
Company in accordance with Basel II norms. Instrument with this rating
would have adequate capacity for timely payment of short-term debt
obligations. CARE has assigned this rating taking into account KEIs
vast experience in the cable industry, proven track record, established
market position, diversified and reputed clientele and continued focus
on power sector development by Government of India.
NEW LOGO
Over a period of years KEI brand has become stronger and is seen as
benchmark in the Cable Industry.
The logo identity created by KEI is unique. This unique logo of KEI
has become the face of the wires and
cables manufacturer. Slightly tilted, the stylish yet classy logo
signifies the inclination of the organization towards a brighter
future. The colour selection of logo indicates the values KEI abides by
- unity, trust, truth and loyalty. The curved ÃE of KEI connotes the
basic structure of a cable, emphasizing its position in the wire and
cable industry. Finally, the light streak in the logo suggests the
power to empower millions of lives.
Companys new logo is registered in the Trade Mark Registry by
Registrar of Trade Marks, Government of India under Trade Marks Act,
1999.
FUTURE OUTLOOK
Gearing up for the pickup in industrial and infrastructure activity in
the country, the Company plans to capitalize on the opportunities by
leveraging its increased capacities, EHV cables manufacturing
capabilities, its proven presence in the EPC space, its brand equity,
visibility and recall for growing its domestic retail business and
lastly spreading its wings in newer international markets.
INCREASE IN PAID-UP SHARE CAPITAL
During the year under review, the Share Allotment Committee of the
Board at its meeting held on March 30, 2010 allotted 30,00,000 equity
shares of Rs.2/- each upon conversion of Warrants to Promoter /
Promoter Group. Due to exercise of conversion of Warrants, the equity
share capital of the Company increased from Rs. 121,874,876 to Rs.
127,874,876 consisting of 63,937,438 equity shares of Rs.2/- each.
LISTING OF SHARES
Companys 63,937,438 equity shares of Rs.2/- each are listed at Bombay
Stock Exchange Limited (BSE), National Stock Exchange of India Limited
(NSE) and The Calcutta stock Exchange Limited (CSE). The Company has
also paid its up-to-date listing fees to all the stock exchanges. BSE &
NSE have nation-wide trading terminals and therefore provide full
liquidity to investors. The Companys equity shares are in compulsory
dematerialization form. As on March 31, 2010, 94.47% of the equity
shares are held in Demat form.
CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreement with Stock Exchanges, a
separate section titled Report on Corporate Governance has been
included in this annual report. Your directors are pleased to report
that your Company is fully compliant as on 31st March, 2010 with the
SEBI Guidelines on Corporate Governance.
DIRECTORS
Retirement by Rotation
In accordance with the requirements of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Rajeev Gupta and Mr. Pawan
Bholusaria, Directors of the Company, retire by rotation at the
forthcoming Annual General Meeting. Both the Directors are eligible and
have offered themselves for re- appointment at the forthcoming AGM.
Increase / revision of remuneration of Executive Director
On review of duties and responsibilities assigned to Mr. Anil Gupta,
CMD and looking to the time devoted by him, the Board of Directors of
your Company on recommendation of Remuneration & Compensation Committee
have decided to increase remuneration payable to him w.e.f. August 01,
2010 to June 30, 2013.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed
a) That in the preparation of the annual accounts for the financial
year ended 31st March, 2010, the applicable accounting standards had
been followed;
b) That the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for the year under review;
c) That the directors had 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.
d) That the directors had prepared the accounts for the financial year
ended 31st March, 2010 on a Ãgoing concern basis.
FIXED DEPOSITS
There are no overdue fixed deposits as on 31st March, 2010.
AUDITORS
M/s Jagdish Chand & Co., Chartered Accountants, auditors of the Company
will retire at the conclusion of the ensuing AGM and are eligible for
reappointment as per certificate furnished by them under Section 224
(1B) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
Information as per Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 is as given below:
Name Designation Gross
Remuneration Qualification Experience Date of
joining Age
Anil
Gupta CMD Rs. 4478477 B.Com 29 Years 31.12.92 49
yrs
Rajeev
Gupta ED
(Finance) Rs. 3021560 Chartered 17 Years 14.12.93 45
yrs
Accountant
Rakesh CEO (EPC) Rs.271975* M. Tech. 21 Years 02.03.2010 45
yrs
Markhedkar
Mr. Anil Gupta, CMD is relative of Mrs. Archana Gupta (Director) of the
Company. * Salary paid for part of the financial year.
PARTICUALRS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREGIN EXCHANGE EARNING AND OUTGO:
The information as regards conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under
Section 217(1) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto as Annexure B and forms an integral part of the
report.
ACKNOWLEDGMENTS
Your Directors place on record their sincere appreciation for
significant contribution made by employees through their dedication,
hard work and commitment.
Your Directors also acknowledge the support extended by the bankers,
government agencies, shareholders and investors at large and look
forward to having the same support in our endeavour to grow
consistently.
For and on behalf of the Board
Place : New Delhi
(ANIL GUPTA )
Date : July 26, 2010 Chairman-cum-
Managing Director