Mar 31, 2015
The Directors have pleasure in presenting their First Annual Report
together with the Audited statement ot Accounts for the year ending 31
March 2015.
The Company was incorporated on September 16, 2014 as a wholly owned
subsidiary of Kirloskar Brothers Investments Limited and received
Certificate of Incorporation on that date from Registrar oi Companies,
Pune, Maharashtra.
FINANCIAL PERFORMANCE
The Company's financial performance for the year under review are given
hereunder:
Particulars Amount in Rs.
Total Income 7,51,325
Total Expenditure 87,96,608
Profit before exceptional items
and taxation (80,45,283)
Provision for tax (including
deferred tax) (24,15,701)
Net Profit/(Loss) (56,29,582)
During the year, the Company invested in Fixed Deposits and earned an
interest income of Rs. 7.51 lakhs.
DIVIDEND
Your Directors do not recommend dividend for financial year 2014-15.
OPERATIONS:
The Company was incorporated with an object:
1. to carry on business as an investment Company and to buy, sell,
invest, acquire by gift transfer, allotment and hold in the name of the
Company or its nominees, shares, [stocks,' papers, debenture stock,
bonds, commercial papers, obligations and securities of any kind,
issued and/or guaranteed by any of the Kirloskar Group Companies and/or
their Affiliates subject to prior approval of Reserve Bank of India
wherever necessary and to buy, sell, acquire other security investments
of Kirloskar Brothers Investments Limited, under any scheme of
arrangement / merger / demerger or under any court order or by way of
transfer, allotment.
2. To carry on business of Travel Services in the form of Vehicle
Leasing.
During the period under review, Kirloskar Brothers Investments Limited
(KBIL) had proposed it's restructuring by way of a Composite Scheme of
Arrangement and Amalgamation (the Composite Scheme") between the
Company, KBIL and Kirloskar Oil Engines Limited (KOEL) and their
respective shareholders and creditors, to demerge the Travel Services
Undertaking along with various investments of KBIL except KOEL into the
Company and merge the residual company with KOEL. Final hearing in
this regard concluded on 30 April 2015 and an order of the Hon'ble
Bombay High Court is awaited.
After the Scheme is effective, the Company will commence the operations
as per its object clause.
CAPITAL
The Authorized Capital of the Company is Rs. 2,00,00,000/- and the
Board of Directors of the Company proposes to increase the same to Rs.
7,50,00,000/- by creation of additional 55,00,000 Equity Shares of Rs.
10/- each.
AUDITORS
The Board of Directors appointed M/s. P. G. Bhagwat, Chartered
Accountants (Firm's Registration No. 101118W), Pune, as First Statutory
Auditors of the Company at its meeting held on 17 September 2015. It is
proposed to appoint M/s. P. G. Bhagwat as Statutory Auditors of the
Company from the conclusion of this Annual General Meeting (AGM) till
the conclusion of sixth Annual General Meeting of the Company to be
held in financial year ended 2019-20, subject to ratification by
members annually. The requisite certificate as per Section 139 of the
Act has been received by the Company.
PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 197 READ WITH RULE 5 OF
THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)
RULES, 2014
None.
PARTICULARS OF INFORMATION FORMING PART OF THE BOARD'S REPROT PRUSUANT
TO SECTION 134 OF THE COMPANIES ACT, 2013, RULE 8 OF THE COMPANIES
(ACCOUNTS) RULES 2014 AND RULE 5 OF THE COMPANIES (APPOINTMENT AND
REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form
MGT-9 is annexed herewith as ' Annexure F to this Report.
NUMBER OF MEETINGS OF THE BOARD
During the year under review, 4 (four) Board meetings were convened and
held. The intervening gap between the Meetings was within the period
prescribed under the Act.
DIRECTORS'S RESONSIBILITY STATEMENT
Pursuant to the requirements of Section 134(5) of the Act, in respect
of Directors' Responsibility Statement, your Directors state that
a) that in the preparation of the annual financial statements for the
year ended 31 March 2015, the applicable accounting standards have been
followed along with the proper explanation relating to material
departures, if any;
b) that such accounting policies as mentioned in Part B to the
Financial Statements have been selected and applied consistently and
judgments and estimates have been made that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the
Company as at 31 March 2015 and of the loss of the Company for the year
ended on that date;
c) that the proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance with the
provisions of the Act, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
d) that the annual financial statements have been prepared on a going
concern basis:
e) that systems to ensure compliance with the provisions of all
applicable laws were in place and were adequate and operating
effectively.
A STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER
SUB-SECTION 6 OF SECTION 149 OF THE ACT
The Company has received the declarations pursuant to provisions of
Section 149 of the Act from the Independent Directors.
COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF
REMUNERATION AND DISCHARGE OF THEIR DUTIES
The Company was not required m device any policy relating to Directors"
appointment, payment of remuneration and discharge of their duties as
the relevant provisions are not applicable to the Company.
EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE
REMARKS OR DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY
SECRETARY IN THEIR REPORT
There was no qualification, reservation or adverse remark made by the
Statutory Auditors in their report. The Company was not required to
obtain report of practicing company secretary.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT UNDER SECTION 186
Your Company has not given any loan or guarantee or security or made
any investment during the year under review.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED
TO IN SUB-SECTION (1) OF SECTION 188 IN THE PRESCRIBED FORM
Pursuant to the provisions of Section 134 of the Companies Act, 2013
read with Rule 8 (2) of the Companies (Accounts) Rules, 2014, the
particulars of contracts or arrangements entered into by the Company
with Related Parties have been done at arm's length and are in the
ordinary course of business. Hence, no particulars are being provided
in Form AOC-2. Related Party disclosures as per AS -18 have been
provided in Note no. CI of the Financial Statements.
STATE OF COMPANY'S AFFAIRS
Discussion on state of Company's affairs has been covered in the paras
of operation and financial performance.
AMOUNTS PROPOSED TO BE CARRIED TO RESERVES
Nil.
MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL
POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH
THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
There have been no 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.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A. The Company has no particulars to report regarding conservation of
energy, technology absorption as required under Section 134 (3) (m) of
the Companies Act, 2013, read with Rules there under.
B. Foreign exchange earnings and Outgo
Sr. Particulars Amount
in'
i) Foreign Exchange earned in terms of actual inflows during the year
Nil
ii) | Foreign Exchange outgo during the year in terms of actual
outflows Nil
STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF A RISK
MANAGEMENT POLICY FOR THE COMPANY
The Company has not formulated any Risk Management Policy.
DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The provisions of Section 135 of the Act in respect of Corporate Social
Responsibility are not applicable to the Company.
BOARD EVALUATION
The Company is not required to conduct performance evaluation of its
Board.
CHANGE IN THE NATURE OF BUSINESS, IF ANY There has been no change in
the nature of business during the financial year under review.
DETAILS OF DIRECTORS OR KEY MANAGEMENT PERSONNEL WHO WERE APPOINTED OR
RESIGNED DURING THE YEAR
Mr. Atul Kirloskar, Mr. A. C. Kulkarni, Mr. A. N. Alawani and Mr. Sunil
Shah Singh were appointed as the First Directors of the Company with
effect from September 16, 2014 (date of incorporation of the Company).
All the First Directors retire at the ensuing Annual General Meeting
and being eligible, offer themselves for re-appointment.
Mr. Vijay K. Bajhal and Mrs. Savita P. Sahasrabudhe were appointed as
an Additional Directors of the Company with effect from 17 September,
2014. Both the Directors hold office till the conclusion of this
ensuing Annual General Meeting and are eligible for re-appointment.
It is proposed to re-appoint Mr. Vijay K. Bajhal for a period of one
year and Mr. Sunil Shah Singh and Mrs. Savita Sahasrabudhe for a period
of five years respectively, as Independent Directors under Section
149,152 and Schedule IV of the Companies Act, 2013 ("the Act") and
rules there under.
The Company has received notices under Section 160 of the Act from a
member signifying their intention to propose re-appointment of all of
the above Directors at the ensuing Annual General Meeting.
The Company does not have Key Managerial Personnel.
NAMES OF COMPANIES WHICH HAVE BECOME OR CEASED TO BECOME ITS
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES DURING THE YEAR
None.
DETAILS RELATING TO DEPOSITS COVERED UNDER CHAPTER V OF THE ACT
None.
DETAILS OF DEPOSITS WHICH ARE NOT IN COMPLIANCE WITH THE REQUIREMENTS
OF CHAPTER V OF THE ACT:
None.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE:
The Company has neither received nor is aware of any such order from
Regulators, Courts or Tribunals during the year, except the following:
The Company has filed a Composite Scheme of Arrangement and
Amalgamation (the "Composite Scheme") between the Kirloskar Brothers
Investments Limited, the Company and Kirloskar Oil Engines Limited
(KOEL) and their respective shareholders and creditors, to demerge the
Travel Services Undertaking along with various investments of KBIL
except investment in KOEL into the Company and merge the residual
company with KOEL. Final hearing in this regard concluded on April 30,
2015 and an order of the Hon'ble Bombay High Court is awaited.
After the scheme is effective, the Company will commence its
operations.
DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH
REFERENCE TO THE FINANCIAL STATEMENTS
None.
COMPOSITION OF AUDIT COMMITTEE:
The Company was not required to constitute Audit Committee and
formulate Vigil Mechanism as the relevant provisions of the Act read
with rules are not applicable to the Company.
INFORMATION FORMING PART OF THE DIRECTORS' REPORT PURSUANT TO RULE 5 OF
THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)
RULES, 2014
None.
CASH FLOW
A Cash Flow Statement for the year ended 31 March 2015 is attached to
the Balance Sheet.
ACKNOWLEDGEMENTS
Your Directors would like to place on record their appreciation of the
contribution made and support provided to the Company by the
shareholders, employees and bankers, during the year under report.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
ATUL KIRLOSKAR
CHAIRMAN
DIN: 00007387
DATE: 19 MAY 2015
PLACE: PUNE
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article