Mar 31, 2018
To
The Members,
The Directors are pleased to present the Thirty-First Annual Report on the business and operation of the Company together with the Audited Financial Statements for the year ended March 31, 2018.
FINANCIAL HIGHLIGHTS (Rs. in Lakhs)
Particulars |
2017-18 |
2016-17 |
Income from Operations |
33,152.52 |
30,482.91 |
Other Income |
148.39 |
45.64 |
Profit before tax |
1,062.03 |
414.19 |
Less: Provision for current tax |
417 |
220.00 |
Less: Net deferred tax liability |
(6.28) |
(87.35) |
Profit after tax |
651.31 |
281.54 |
Other Comprehensive Income |
7.74 |
(16.25) |
Earning per share of Rs. 10/- each |
||
Basic (in Rs.) |
11.10 |
4.80 |
Diluted (in Rs.) |
11.10 |
4.80 |
COMPANYâS PERFORMANCE
Pursuant to the notification issued by the Ministry of Corporate Affairs on February 16, 2015 and under the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, the Company has adopted Indian Accounting Standards (Ind AS) on April 1, 2017, with the transition date as April 1, 2016.
The Financial Statements for the year under review and previous year have been prepared in accordance with the recognised and measurement principles stated therein. Considering the effect given in the financial statements of the previous years, as per the provisions of Ind AS 101 with respect to âFirst-time Adoption of Indian Accounting Standardsâ.
During the year under review, the Company has achieved a turnover of Rs. 33,152.52 Lakhs as compared to Rs. 30,482.91 Lakhs in the previous year. Accordingly, there was a top line growth of 8.76%. The Profit after tax for the financial year 2017-18 was Rs. 651.31 lakhs as compared to Rs. 281.54 lakhs during the previous year.
FUTURE PLANS
The Company would continue its focus in increasing efficiency through modernisation and adoption innovative management methods in every division of the Company. The Companyâs finished fabrics division which supplies fabrics to readymade branded manufacturers is expected to perform better, considering the improved consumer sentiments.
The Company proposes to launch âRISQUEâ - Menâs Casual Shirt Brand targeted for online market and distribution network. This would enable the Company to create better margin in same capacities. Also, the brand will be positioned to enter new areas and segments of fashion. The Company proposes to enter into Womenâs Wear segment wherein it will use fabric manufacturing capacity of the Company to offer innovative fabrics for womenâs garments and use these fabrics to create garment samplings eventually to create womenâs wear brand in long run.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 2/- (i.e. 20%) per equity share on the equity capital of the Company for the year under review. The said dividend shall be subject to the approval of the members at the ensuing annual general meeting.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the financial year under review.
RESERVES
During the year under review, the Company has not transferred any profit to general reserves.
CORPORATE GOVERNANCE REPORT
As per Regulation 34(3) read with schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (âListing Regulationsâ), a separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Regulation 17(7) read with Part A of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also enclosed along with the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is as required under Regulation 34 read with Schedule V of the Listing regulations forms part of this Annual Report.
DISCLOSURE REQUIREMENTS
Details of programmes for familiarization of Independent Directors with the Company are available on the website of the Company at the folllowing link http://kflindia.com/wp-content/uploads/2017/09/ PD-3.pdf.
Policy on dealing with related party transactions is available on the website of the Company at the following link http://kflindia.com/wp-content/uploads/2017/09/PD-1.pdf .
Policy for archival of documents of the Company is available on the website of the Company at the following link http://kflindia.com/ wp-content/uploads/2018/04/Archival-Policy.pdf .
Policy for determining Materiality of Events of the Company is available on the website of the Company at following the link http://kflindia.com/ wp-content/uploads/2018/05/WebsiteRegulation-305 2018-19 KFL.pdf.
The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of Section 177(9) of the Companies Act, 2013 and Regulation 4(2)(d) (iv) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Policy on Whistle Blower is available on the website of the Company at the following link http://kflindia.com/ wp-content/uploads/2017/09/PD-2.pdf .
NUMBER OF BOARD MEETINGS
The Board of Directors met 4 (Four) times during the financial year 2017-18. The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.
DECLARATION BY INDEPENDENT DIRECTORS:
The Company has received necessary declarations from all the Independent Directors under Section 149(7) of the Act stating that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013.
PERFORMANCE EVALUATION OF BOARD
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) and Regulation 25(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the Independent Directors was carried out by the entire Board except the Independent Director being evaluated.
The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.
POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
The Companyâs policy on Directorsâ appointment and remuneration and other matters provided in Section 178(3) of the Companies Act, 2013, has been disclosed in the Corporate Governance Report, which forms part of the Annual Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In terms of Section 152 of the Companies Act, 2013, Mr. Pradip Kumar Goenka retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.
Additional information on appointment/re-appointment of Directors as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in the Notice convening the ensuing Annual General Meeting.
During the year, Mr. Siddanth Singh ceased to be a Key Managerial Personnel of the Company with effect from December 5, 2017.
Subsequent to the year under review, Mr. Lalit Goenka ceased to be a Director of the Company with effect from May 26, 2018 and Mr. Gaurav K. Soni was appointed as Company Secretary (Key Managerial Personnel) with effect from May 26, 2018.
COMMITTEES OF THE BOARD OF DIRECTORS
AUDIT COMMITTEE
During the year in review, the Audit Committee of the Company comprised of three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul Mehta and Ms. Bindu Shah. Mr. Sanjeev Maheshwari is the Chairman of the Audit Committee. There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of the Annual Report.
Details of all the Committees of the Board of the Company along with their terms of reference, composition and meetings held during the year, are provided in the Corporate Governance Report, which forms part of this Annual Report.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 134(5) of the Companies Act, 2013, with respect to Directorsâ Responsibility Statement it is hereby confirmed that:
i. in the preparation of the annual accounts for the financial year ended March 31, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
ii. the Directors have 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 as at March 31, 2018 and of the profit of the Company for that period;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts for the financial year ended March 31, 2018, on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
vi. 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.
AUDITORS AND AUDITORSâ REPORT
Statutory Auditors
At the Annual General Meeting of the Company held on September 26, 2014, M/s. Haribhakti & Co. LLP, Chartered Accountants, Mumbai was appointed as statutory auditors of the Company to hold office till the conclusion of the 32nd Annual General Meeting.
The Auditorsâ Report does not contain any disqualification, reservation or adverse mark.
Secretarial Auditor
The Company has appointed M/s. H. S. Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2017-18 in terms of provisions of Section 204 of the Companies Act, 2013. The Secretarial Auditor Report for the year ended March 31, 2018 is annexed to this report as Annexure A. There is no observation or comment which requires your attention.
Cost Auditor
As per the requirement of Central Government pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out Cost Audit of cost records relating to Textile products every year.
The Board of Directors, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 2018-19 at a remuneration of Rs. 0.90 Lakh plus Goods and Service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking ratification of membersâ for the payment of remuneration to Cost Auditor forms part of the Notice convening the Annual General Meeting.
The Cost Audit report for the financial year 2016-17 was filed with the Ministry of Corporate Affairs.
EXTRACT OF ANNUAL RETURN
In terms of provisions of Section 92(3) of the Companies Act, 2013, an extract of Annual Return in prescribed format is annexed to this Report as Annexure B.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the year under review, all transactions entered into by the Company with related parties as defined under the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were in the ordinary course of business and on an armâs length basis. There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.
Disclosure of transactions with related parties as required under the Indian Accounting Standard (IND AS-24) has been made in the notes forming part of the financial statements. 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 to your Company.
PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013
The Company has not granted any loans, not provided any Guarantee and not made any Investments which are covered under the provision of Section 186 of the Companies Act, 2013.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE
Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014 is given as Annexure C. The Company being focusing in Indian market, it has not taken any export initiative.
PARTICULARS OF REMUNERATION TO MANAGERIAL PERSONNEL
In terms of provisions of the Companies Act, 2013 and disclosure as required under rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure D, which is annexed to this Report.
A statement containing the particulars as required under rule 5(2) and (3) of the Companies (Appointment and Remuneration of managerial Personnel) Rules, 2014 is not required to be given as per the Notification issued by Ministry of Corporate Affairs dated June 30, 2016.
RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Companyâs internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors. Significant audit observations and follow up actions thereon are reported to the Audit Committee.
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.
The Audit Committee of the Board of Directors actively review the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in Companyâs premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.
During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date: May 26, 2018 Chairman & Managing Director
Mar 31, 2016
To
The Members,
The Directors are pleased to present the Twenty-Ninth Annual Report on the business and operation of the Company together with the Audited Financial Statements for the year ended 31st March, 2016.
FINANCIAL HIGHLIGHTS (Rs.in Lakh)
Particulars |
Financial Year 2015-16 |
Financial Year 2014-15 |
Turnover |
30,058.05 |
25,966.75 |
Other Income |
4.02 |
2.20 |
Profit before tax |
320.20 |
356.26 |
Less: Provision for current tax |
(164.78) |
(107.59) |
Less: Net deferred tax liability / (asset) |
(34.72) |
31.44 |
Profit for the year |
190.14 |
217.23 |
Add: Balance brought forward |
1,091.04 |
1,016.16 |
Profit available for appropriation |
1,281.18 |
1,193.34 |
Appropriation: |
||
Transferred to General Reserve |
9.51 |
10.86 |
Proposed dividend |
81.60 |
75.97 |
Tax on proposed dividend |
16.61 |
15.47 |
Balance carried forward |
1,173.46 |
1,091.04 |
OPERATIONS
During the year under review, the Company has achieved a turnover of Rs.30,058.05 lakh as compared to Rs.25,966.75 lakh in the previous year. Accordingly, there was a top line growth of 15.90%. The Profit after tax for the financial year 2015-16 was Rs.190.14 lakh as compared to Rs.217.23 lakh during the previous year. There was decline in the Profit after tax due to higher cost of production comprising of increased cost of labour cost, job charges, material cost and power tariffs.
The Company has been working on various measures to reduce cost and increase the efficiency.
FUTURE PLANS
The Company is identifying its core strength of weaving, manufacturing âvalue for moneyâ fabrics/garments and marketing same through its distribution network as well as organized retail market. Further, the Company is also concentrating on brand manufacturing contract, which gives lesser margin but at the same time releases marketing pressure. The Company continues to innovate and improve upon its production process to increase its operational efficiency at optimum cost.
The Management is expecting these initiatives to result in better profitability in coming years.
ISSUE OF SECURITIES
During the year under review, the Company has issued and allotted 3,75,000 Equity shares of Rs.10/- each at a premium of Rs.52/- per share aggregating Rs.232.50 lakh and 4,29,505 Compulsorily Convertible Debentures (âCCDsâ) of Rs.10/- each at a premium of Rs.52/- per CCD aggregating Rs.266.29 lakh convertible on 01st April, 2016.
Through these preferential issues of securities, the Company has raised Rs.498.79 lakh in aggregate from non-promoter group.
SHARE CAPITAL
During the year, paid up Equity share capital of the Company has been increased from Rs.506.49 lakh to Rs.543.89 lakh consequent to issue of 3,75,000 new shares on preferential basis.
On 01st April, 2016, paid up Equity share capital of the Company further increased to Rs.586.93 lakh on conversion of 429,505 CCDs.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs.1.50/- (i.e. 15%) per equity share on the equity capital of the Company for the year under review. The said dividend shall be subject to the approval of the members at the ensuing annual general meeting.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the financial year under review.
RESERVES
During the year under review, the Company has transferred Rs.9.51 lakh to general reserves.
CORPORATE GOVERNANCE REPORT
As per Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate report on Corporate Governance is enclosed as a part of this Annual Report. A certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Regulation 17(7) read with Part A of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also enclosed along with the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is presented as a separate section forming part of this Annual Report.
DISCLOSURE REQUIREMENTS
The process of Familiarization program for Independent Directors is posted on website of the Company at the link http://kflindia.com/wp-content/ uploads/2015/08/KFL-ID-Familiarization.pdf.
Accordingly, the Company provides as part of Board Meeting insight on various business process through specific discussion on business review. As part of familiriasation program the Company has spent about two hours during the year in various Board Meetings on business review and update.
Policy on dealing with related party transactions is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-RPT-Policy.pdf
The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of Section 177(9) of the Companies Act, 2013 and Regulation 4(d)(iv) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Establishment of Vigil Mechanism is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-Vigil-Mechanism.pdf
NUMBER OF BOARD MEETINGS
The Board of Directors met 5 (Five) times during the financial year 2015-16. The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.
DECLARATION BY INDEPENDENT DIRECTORS:
The Company has received necessary declarations from all the Independent Directors under Section 149(7) of the Act stating that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013.
PERFORMANCE EVALUATION OF BOARD
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) and Regulation 25(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.
A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the Independent Directors was carried out by the entire Board except the Independent Director being evaluated.
The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.
POLICY ON DIRECTORSâ APPOINTMENT AND REMUNERATION
The Company''s policy on Directors'' appointment and remuneration and other matters provided in Section 178(3) of the Companies Act, 2013, has been disclosed in the Corporate Governance Report, which forms part of the Annual Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
In terms of Section 152 of the Companies Act, 2013, Mr. Lalit Genka retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.
Mr. Siddhant Singh was appointed as Company Secretary with effect from 01st September, 2015.
Additional information on appointment/reappointment of Directors as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in the Notice convening the ensuing Annual General Meeting.
COMMITTEES OF THE BOARD OF DIRECTORS AUDIT COMMITTEE
During the year review, the Audit Committee of the Company comprised of three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul Mehta and Ms. Bindu Shah. Mr. Sanjeev Maheshwari is the Chairman of the Audit Committee. There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of the Annual Report.
Details of all the Committees of the Board of the Company along with their terms of reference, composition and meetings held during the year, are provided in the Corporate Governance Report, which forms part of this Annual Report.
DIRECTORSâ RESPONSIBILITY STATEMENT
Pursuant to the requirements of Section 134(5) of the Companies Act, 2013, with respect to Directors'' Responsibility Statement it is hereby confirmed that:
i. in the preparation of the annual accounts for the financial year ended 31st March, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;
ii. the Directors have 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 as at 31st March, 2016 and of the profit of the Company for that period;
iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
iv. the Directors have prepared the annual accounts for the financial year ended 31st March, 2016, on a going concern basis;
v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;
vi. 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.
AUDITORS AND AUDITORSâ REPORT Statutory Auditors
At the Annual General Meeting of the Company held on 26th September, 2014, M/s Haribhakti & Co. LLP, Chartered Accountants, Mumbai was appointed as statutory auditors of the Company to hold office till the conclusion of the 32nd Annual General Meeting. In terms of the first proviso to Section 139 of the Companies Act, 2013 the appointment of the auditors shall be placed for ratification at every Annual General Meeting.
Accordingly, the appointment of M/s. Haribhakti & Co. LLP, Chartered Accountants, Mumbai, as statutory auditors of the Company, placed before for ratification by the shareholders.
The Auditors'' Report does not contain any disqualification, reservation or adverse mark.
Secretarial Auditor
The Company has appointed M/s. H. S. Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2015-16 in terms of provisions of Section 204 of the Companies Act, 2013. The Secretarial Auditor Report for the year ended 31st March, 2016 is annexed to this report as Annexure A. There is no observation or comment which requires your attention.
Cost Auditor
As per the requirement of Central Government pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out Cost Audit of cost records relating to Textile products every year.
The Board of Directors, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 2016-17 at a remuneration of Rs.90,000/- plus service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking ratification of members'' for the payment of remuneration to Cost Auditor forms part of the Notice convening the Annual General Meeting.
The Cost Audit report for the financial year 2014-15 was filed with the Ministry of Corporate Affairs.
EXTRACT OF ANNUAL RETURN
In terms of provisions of Section 92 (3) of the Companies Act, 2013, an extract of Annual Return in prescribed format is annexed to this Report as Annexure B.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the year under review, all transactions entered into by the Company with related parties as defined under the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were in the ordinary course of business and on an arm''s length basis.
There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.
Disclosure of transactions with related parties as required under the Accounting Standard (AS-18) has been made in the notes forming part of the financial statements. 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 to your Company.
PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013
The Company has not granted any loans, not provided any Guarantee and not made any Investments which are covered under the provision of Section 186 of the Companies Act, 2013.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE
Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014 is given as Annexure C. The Company being focusing in Indian market, it has not taken any export initiative.
PARTICULARS OF EMPLOYEES
In terms of provisions of Companies Act, 2013 and disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure D, which is annexed to this Report.
Addition to the above, a statement containing the particulars as required under Rule 5(2) and (3) of the Companies (Appointment and Remuneration of managerial Personnel) Rules, 2014 is given as Annexure E.
RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY
The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company''s internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested Statutory as well as Internal Auditors. Significant audit observations and follow up actions thereon are reported to the Audit Committee.
The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.
The Audit Committee of the Board of Directors actively review the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment free workplace for every individual working in Company''s premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.
During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date: 30th May, 2016 Chairman & Managing Director
Mar 31, 2015
The Members,
The Directors are pleased to present the Twenty-eighth Annual Report
along with the audited Financial Statements for the year ended 31st
March 2015.
FINANCIAL HIGHLIGHTS ( Rs. in Lakh)
PARTICULARS 2014-2015 2013-2014
Turnover 25,966.75 25,310.42
Other Income 2.20 9.37
Profit before tax 356.26 438.19
Less: Provision for current tax 107.59 119.00
Less: Net deferred tax liability 31.44 26.61
Profit for the year 217.23 292.58
Add: Balance brought forward 1016.16 827.09
Profit available for appropriation 1193.34 1119.67
Appropriation:
Transferred to General Reserve 10.85 14.63
Proposed dividend 75.97 75.97
Tax on proposed dividend 15.47 12.91
Balance carried forward 1091.04 1016.16
OPERATIONS
During the year under review, the Company has achieved marginally
higher top line compared to previous year. The Company has achieved a
turnover of Rs. 25,966.75 lakh during the year as compared to Rs. 25,310.42
lakh during the previous year. The Profit after tax for the financial
year 2014-15 was Rs. 217.23 lakh as compared to Rs. 292.58 lakh during the
previous year.
The measures took by the Company on cost, capacity utilisation and
product innovation have started showing results. The Company believes
that working on the said purpose would be continuous pursuit.
FUTURE PLANS
The Company plans to strengthen existing business operations by
streamlining activities requiring more management thrust for showing
improved performance, as per the plan envisaged by the Company. The
Company continue its pursuit to reduced operational costs, better
utilisation manufacturing facilities and product innovation. The
management is expecting these initiatives to result in better
profitability in coming years.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 1.50 (i.e.15%)
per equity share on the equity capital of the Company for the year
under review.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the
financial year under review.
CORPORATE GOVERNANCE REPORT
A separate report on Corporate Governance is enclosed as a part of this
Annual Report. A Certificate from Auditors of your Company regarding
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with stock exchange is also enclosed
along with the Corporate Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is presented as a separate section
forming part of this Annual Report. DISCLOSURE REQUIREMENTS
Details of programmes for familiarization of Independent Directors with
the Company are available on the website of the Company at the link
http://kflindia.com/wp-content/uploads/2015/08/KFL-ID-Familiarization.pdf
Policy on dealing with related party transactions is available on the
website of the Company at the link
http://kflindia.com/wp-content/uploads/2015/08/KFL-RPT-Policy.pdf.
The Company has formulated and disseminated a Whistle Blower Policy to
provide vigil mechanism for employees and Directors of the Company to
report genuine concerns that could have serious impact on the
operations and performance of the business of the Company. This Policy
is in compliance with the provisions of section 177(9) of the Companies
Act, 2013 and clause 49 of the Listing Agreement. Policy on Whistle
Blower is available on the website of the Company at the link
http://kflindia.com/wp-content/uploads/2015/08/KFL-Vigil-Machanism.pdf
NUMBER OF BOARD MEETINGS
The Board of Directors met 5 (Five) times during the financial year
2014-15. The details of Board meetings and the attendance of the
Directors are provided in the Corporate Governance Report which forms
part of this Annual Report.
PERFORMANCE EVALUATION OF BOARD
Pursuant to the provisions of the Companies Act, 2013 and clause 49 of
the Listing Agreement, the Board has carried out an annual evaluation
of performance of its own, the Committees thereof and the Directors
individually. At the meeting of the Board all the relevant factors that
are material for evaluating the performance of the Committees and of
the Board were discussed in detail.
A separate exercise was carried out to evaluate the performance of
individual directors including the Chairman of the Board, who were
evaluated on parameters such as level of engagement and contribution,
independence of judgment, safeguarding the interest of the Company and
its minority shareholders, etc. The performance evaluation of the
independent directors was carried out by the entire Board except the
independent directors being evaluated.
The performance evaluation of the Chairman and Non-Independent
Directors was carried out by the Independent Directors.
POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The Company's policy on directors' appointment and remuneration and
other matters provided in section 178(3) of the Companies Act, 2013,
has been disclosed in the Corporate Governance Report, which forms part
of the Annual Report.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
The Directors express their profound grief at the sad demise of Mr.
Ashwani Bhatia, Independent Director on 6th June 2015 and place on
record the deep sense appreciation for valuable contribution made by
him.
During the year under review, Ms. Bindu Shah was appointed as an
Additional Director (Independent) with effect from 21st March 2015. As
per the provisions of section 161(1) of the Companies Act, 2013 ('the
Act'), she holds office upto the date of the ensuing Annual General
Meeting. A Notice under section 160(1) of the Act has been received
from a Member signifying its intention to propose Ms. Bindu Shah as an
Independent Director of the Company. The Board recommended her
appointment as an Independent Director for a term of five years at the
ensuing Annual General Meeting.
In terms of section 152 of the Act, Mr. Pradip Kumar Goenka retires by
rotation at the ensuing Annual General Meeting and being eligible
offers himself for re-appointment
The Company has received necessary declarations from all the
Independent Directors under section 149(7) of the Act that they meet
the criteria of independence laid down in section 149(6) of the Act and
Clause 49 of the Listing Agreement.
The Board of Directors, subject to approval of members at the ensuing
Annual General Meeting, have approved reappointment of Mr. Pradip Kumar
Goenka as Chairman & Managing Director with effect from 26th August
2015 for a period of 3 years. The Board, subject to shareholders'
approval, in order to comply with section 203(1) of the Act and to
continue the dual position held by Mr. Pradip Kumar Goenka as Chairman
& Managing Director and also to realign with the provisions of the
Companies Act, 2013, the Company proposes to adopt a new set of
Articles of Association as per Table 'F' of Schedule I of the
Companies Act, 2013
Mr. Jagdish Prasad Dave, Finance Controller of the Company was
appointed as Chief Financial Officer with effect from 12th November,
2014.
Additional information on appointment / reappointment of directors as
required under clause 49 of the Listing Agreement is given in the
Notice convening the ensuing Annual General Meeting.
COMMITTEES OF THE BOARD OF DIRECTORS AUDIT COMMITTEE
During the year review, the Audit Committee of the Company comprised of
three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul
Mehta and Mr. Ashwani Bhatia. Mr. Sanjeev Maheshwari is the Chairman of
the Audit Committee. Ms. Bindu Shah, Independent Director has been
appointed as a member of the Committee with effect from 11th August
2015 in place of Late Mr. Ashwani Bhatia. There are no instances where
the Board did not accept the recommendations of the Audit Committee.
The terms of reference, powers and roles of the Committee are disclosed
in the Corporate Governance Report, which forms part of the Annual
Report.
Details of all the Committees of the Board of the Company along with
their terms of reference, composition and meetings held during the
year, are provided in the Corporate Governance Report, which forms part
of this Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirements of section 134(5) of the Companies Act,
2013, with respect to Directors' Responsibility Statement it is hereby
confirmed that:
i. in the preparation of the annual accounts for the financial year
ended 31st March 2015, the applicable accounting standards have been
followed along with proper explanation relating to material departures,
if any;
ii. the Directors have 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 as at 31st March 2015 and of the profit or loss of the
Company for that period;
iii. the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
iv. the Directors have prepared the annual accounts for the financial
year ended 31st March, 2015, on a going concern basis.
v. the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and were operating effectively.
vi. 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.
AUDITORS AND AUDITORS' REPORT Statutory Auditors
At the Annual General Meeting of the Company held on 26th September
2014, M/s Haribhakti & Co LLP, Chartered Accountants, Mumbai was
appointed as statutory auditors of the Company to hold office till the
conclusion of the 32nd Annual General Meeting. In terms of the first
proviso to section 139 of the Companies Act, 2013 the appointment of
the auditors shall be placed for ratification at every Annual General
Meeting.
Accordingly, the appointment of M/s. Haribhakti & Co LLP, Chartered
Accountants, Mumbai, as statutory auditors of the Company, placed
before for ratification by the shareholders.
The Auditors' Report does not contain any disqualification, reservation
or adverse mark.
Secretarial Auditor
The Company has appointed M/s. H. S. Associates, Company Secretaries to
conduct Secretarial Audit of the Company for the financial year 2014-15
in terms of provisions of section 204 of the Companies Act, 2013. The
Secretarial Auditor Report for the year ended 31st March 2015 is
annexed to this report as Annexure A.
With regards to the observation made by the Secretarial Auditor in his
report, we state that though the Company could not appoint a company
secretary during the year, on the date of signing of this report, the
Company has appointed a company secretary with effect from 1st
September 2015.
Cost Auditor
As per the requirement of Central Government pursuant to section 148 of
the Companies Act 2013 read with the Companies (Cost Records and Audit)
Rules, 2014 as amended from time to time, your Company has been
carrying out Cost Audit of cost records relating to Textile products
every year.
The Board of Directors, on the recommendation of Audit Committee, has
appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to
audit the accounts of the Company for the financial year 2015-16 at a
remuneration of Rs. 90,000/- plus service tax as applicable and
reimbursement of out of pocket expenses. As required under the
Companies Act, 2013, a resolution seeking ratification of members' for
the payment of remuneration to Cost Auditor forms part of the Notice
convening the Annual General Meeting.
The Cost Audit report for the financial year 2013-14 was filed with the
Ministry of Corporate Affairs.
EXTRACT OF ANNUAL RETURN
In terms of provisions of section 92 (3) of the Companies Act, 2013, an
extract of Annual Return in prescribed format is annexed to this Report
as Annexure B.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
During the year under review, all transactions entered into by the
Company with related parties as defined under the Companies Act, 2013
and clause 49 of the Listing Agreement, were in the ordinary course of
business and on an arm's length basis. There were no materially
significant transactions with the related parties during the financial
year which were in conflict with the interest of the Company.
Disclosure of transactions with related parties as required under the
Accounting Standard (AS-18) has been made in the notes forming part of
the financial statements. Particulars of contract or arrangements with
related parties referred to in section 188(1) of the Companies Act,
2013, in the prescribed Form AOC-2, is appended as Annexure C, which
forms part of this Report.
PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE
PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013
The Company has not granted any Loans, not provided any Guarantee and
not made any Investments which are covered under the provision of
section 186 of the Companies Act, 2013.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO AND EXPORT INITIATIVE
Information pursuant to section 134(3)(m) of the Companies Act, 2013
read with Companies (Disclosure of Particulars in Report of Board of
Directors) Rules, 1988 is given as Annexure D, Form "A" & "B"
is attached and form part of this report. The Company being focusing in
Indian market, it has not taken any export initiative.
PARTICULARS OF EMPLOYEES
In terms of provisions of Companies Act, 2013 and disclosure as
required under rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 framed there under, the names and
other particulars of employees are provided under Annexure E, which is
annexed to this Report.
Addition to the above, a statement containing the particulars as
required under rule 5(2) and (3) of the Companies (Appointment and
Remuneration of managerial Personnel) Rules, 2014 is given as Annexure
F
RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY
The Company has in place a mechanism to identify, assess, monitor and
mitigate various risks to key business objectives. Major risks
identified by the businesses and functions are systematically addressed
through mitigating actions on a continuing basis. The Company's
internal control systems are commensurate with the nature of its
business and the size and complexity of its operations. These are
routinely tested Statutory as well as Internal Auditors. Significant
audit observations and follow up actions thereon are reported to the
Audit Committee.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company has always believed in providing a safe and harassment
free workplace for every individual working in Company's premises
through various interventions and practices. The Company always
endeavours to create and provide an environment that is free from
discrimination and harassment including sexual harassment.
During the year under review, there were no cases filed pursuant to the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all
the bankers, customers, employees at all levels and stakeholders for
the continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date: 11th August 2015 Chairman & Managing Director
Mar 31, 2014
Dear members,
The Directors have great pleasure in presenting Twenty-seventh Annual
Report along with the audited Balance Sheet and Statement of Profit and
Loss for the year ended 31 st March 2014.
FINANCIAL HIGHLIGHTS
$ In lacs
PARTICULARS 2013-2014 2012-2013
Turnover 25,310.42 20,217.68
Other Income 9.37 20.01
Profit Before Tax 438.19 151.83
Less: Current Tax 119.00 30.40
Less: Defferred Tax 26.61 60.30
Less: MAT Credit Entitlement - (30.40)
Profit for the Year 292.58 91.53
Add: Balance Brought Forward 827.09 765.18
Profit Available for Appropriation 1,119.67 856.71
Appropriation - -
Transferred to General Reserve 14.63 -
Proposed Dividend 75.97 25.32
Tax on Proposed Dividend 12.91 4.30
Balance Carried Forward 1,016.16 827.09
OPERATIONS
During the year under review, the turnover of and profit from the
business grew in-spite of challenging business environment. The Company
achieved turnover of $ 25,310.42 lacs during the financial year under
review as compared to $ 20,217.68 lacs during the previous financial
year. The Profit after tax for the financial year 2013-14 was $ 292.58
lacs as compared to $ 91.53 lacs during the previous financial year.
The Company could achieve better profitability due to optimising its
operations and changing manufacturing product mix. Your Company has
been putting in all efforts to control costs, ensure optimum
utilisation of available manufacturing facilities and investing on
product innovations to provide value added products and thereby
increasing contribution to profitability.
FUTURE PLANS
The Company plans to further consolidate its existing business and
continue to its efforts to reduce operational costs, improve
utilisation ratio of manufacturing facilities and continue to work on
product innovations. The Company expects the continued focus on
aforesaid measures which would help the Company to improve its
profitability by creating niche market for its products. Further, the
Company proposes to optimise the available manufacturing facilities by
adding few more equipments which would increase the production
capacity.
DIVIDEND
Your Directors are pleased to recommend a dividend of $1.50 per equity
share (i.e. 15%) on the equity capital of the Company for the year
under review.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is presented as a separate section
forming part of this Annual Report. CORPORATE GOVERNANCE REPORT
A separate report on Corporate Governance is enclosed as a part of this
Annual Report. A Certificate of Auditors'' of your Company regarding
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with stock exchange is also enclosed
along with the Corporate Governance Report.
PARTICULARS OF EMPLOYEES
Particulars as required to be disclosed under section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are given in the Annexure A to this Report.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the
financial year under review.
DIRECTORS
In accordance with the provisions of the Companies Act, 2013, Mr.
Pradip Kumar Goenka, Mr. Anil Biyani and Mr. Lalit Goenka, Directors of
the Company retire by rotation at the ensuing Annual General Meeting
and being eligible offer themselves for re-appointment.
In line with the provisions of section 149 and other applicable
provisions of the Companies Act, 2013, Mr. Ashwani Bhatia, Mr. Rahul
Mehta and Mr. Sanjeev Maheshwari are being appointed as Independent
Directors for a term of five years from the date of the ensuing Annual
General Meeting. Necessary resolutions and requisite details have been
included in Notice of Annual General Meeting.
AUDITORS
M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as
Statutory Auditors upto the conclusion of the ensuing Annual General
Meeting and being eligible, offers themselves for re-appointment.
Shareholders are requested to appoint them as Statutory Auditors to
hold office upto the conclusion of the 32nd Annual General Meeting and
to fix their remuneration.
COST AUDIT
The Company has been maintaining cost accounting records for textile
products. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as
a cost auditor for the financial year 2014-15. The Cost Audit Report
for the financial year 2013-14 has been filed with the Ministry of
Corporate Affairs.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company hereby state and confirm that:
i in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. the selected accounting policies were applied consistently and the
Directors 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 as at 31st March 2014 and that of the profit of the Company for
the year ended on that date;
iii. the proper and sufficient care have been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO AND EXPORT INITIATIVE
Information pursuant to section 217(1)(e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in Report of Board of
Directors) Rules, 1988 is given in Form "A" & "B" which forms part of
this report. Since the Company is focusing in Indian market, it has not
taken any export initiative.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all
the bankers, customers, employees at all levels and stakeholders for
the continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date : 28th May 2014 Chairman & Managing Director
Registered Office:
28, Y. A. Chunawala Industrial Estate
Kondivita Lane, Andheri (East)
Mumbai - 400059
Mar 31, 2013
To The Members,
The Directors have great pleasure in presenting Twenty-sixth Annual
Report along with the audited Statement of Accounts for the year ended
31st March 2013.
FINANCIAL HIGHLIGHTS
( in Lacs)
2012-13 2011-12
Turnover 20217.68 20523.01
Other Income 29.39 15.00
Profit before tax 151.83 275.08
Less: Provision for current tax 30.40 54.92
Less: Net deferred tax liability 60.30 52.06
Profit for the year 91.53 168.10
Add: Balance brought forward 765.18 626.51
Profit available for appropriation 856.71 794.61
Appropriation:
Proposed dividend 25.32 25.32
Tax on proposed dividend 4.30 4.11
Balance carried forward 827.09 765.18
OPERATIONS
Year 2012-13 was another challenging year for the Company. During the
year under review, the Company was able to maintain the top line almost
at the same level as of the previous year despite challenging business
environment and weak consumer sentiment. However, the Company could not
maintain bottom line due to overall increase in operational costs
including interest, personnel, power and fuel costs. The Company has
achieved a turnover of Rs. 20217.68 lacs during the year as compared to Rs.
20523.01 lacs during the previous year. The profit after tax for the
financial year 2012-13 was Rs. 91.53 lacs as compared to Rs. 168.10 lacs
during the previous year. The various measures taken for controlling
the costs and improving the productivity have started giving returns.
As these measures are continuous process, the Company would continue
its effort to increase the productivity, control the costs and
investing on product innovations, to reap benefits in terms of increase
profitability in years to come.
FUTURE PLANS
During the year, the Company plans to further strengthen its presence
in branded fabrics, mainly linen, polyester, viscose and polyester
cotton blends. In weaving division, the Company intends to gradually
replace old machines with the technologically advanced machines to
enhance the productivity.
The Company also plans to launch ''Lombard'' brand of premium fabrics and
accessories range. The Company has entered into brand licensing
agreement with Future Brands Limited, the brand owners of ''Lombard''.
The Company believes that this business has a potential to grow in the
long run.
The Company has, in principle, decided to dispose of its jeans
stitching and washing facility situated at Plot no. B7/3, MIDC,
Tarapur, Thane District, Maharashtra, as the same is not a major
contributor to the top line and is reducing overall profitability being
a negative contributor. Sale of these facilities would free up the
working capital to some extent and would also help to improve the
operational efficiency and bottom line of the Company.
The Company plans to consolidate its business and continue its effort
to control costs, better utilization of manufacturing facilities and
investing on product innovations. The Company expects the continued
focus on said measures, would help the Company to improve its bottom
line as well as top line. In view of these efforts, the proposed Rights
Issue of shares of the Company has also been called off.
Future Group continues to be associated with the Company for strategic
and marketing initiatives. This association helps the Company to
counter the competition and assures ready market for quality products
of the Company.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs.0.50 per equity
share (i.e. 5%) on the equity capital of the Company for the year under
review.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is presented as a separate section
forming part of this Annual Report.
CORPORATE GOVERNANCE REPORT
A separate report on Corporate Governance is enclosed as a part of this
Annual Report. A Certificate of Auditors of your Company regarding
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with stock exchange is also enclosed
along with the Corporate Governance Report.
PARTICULARS OF EMPLOYEES
Particulars as required to be disclosed under section 217(2A) of the
Companies Act,1956 read with the Companies (Particulars of Employees)
Rules, 1975 are given in the Annexure A to this Report.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the
financial year under review.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Anil Biyani and Mr. Ashwani
Bhatia, Directors of the Company retire by rotation at the ensuing
Annual General Meeting and being eligible offer themselves for
re-appointment. The details as required by clause 49 of the Listing
Agreement, is given as part of the general meeting notice.
Mr. Lalit Kumar Goenka, Whole time Director has ceased to be a Whole time
Director after the close of business hour on 25th August 2012 and he
continues as a Non-Executive Director.
Mr. Madhusudan Singrodia has resigned as Director of the Company w.e.f.
29th May, 2013 due to pre-occupation. Board places on record sincere
appreciation for the contribution made by him during his tenure as
Director of the Company.
AUDITORS
M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as
Statutory Auditors up to the conclusion of the ensuing Annual General
Meeting and being eligible, offers themselves for re-appointment. They
have issued a certificate to the effect that their appointment, if
made, at the ensuing Annual General Meeting shall be within the limits
prescribed under section 224(1B) of the Companies Act, 1956.
Shareholders are requested to appoint them as Statutory Auditors to
hold office up to the conclusion of the next Annual General Meeting and
to fix their remuneration.
COST AUDIT
Your Company is following the order issued under the section 209(1)(d)
of the Companies Act, 1956 as amended in respect of manufacture of
textiles. The Company has been maintaining cost accounting records as
required in the above referred provision of the Companies Act, 1956 as
amended. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as
a cost auditor for the financial year 2013-14.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company hereby state and confirm that:
I. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. the selected accounting policies were applied consistently and the
Directors 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 as at 31st March 2013 and that of the profit of the Company for
the year ended on that date;
iii. the proper and sufficient care have been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. the annual accounts have been prepared on a going concern basis.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all
the bankers, customers, employees at all levels and stakeholders for
the continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date: 30th May 2013 Chairman & Managing Director
Mar 31, 2012
The Directors have great pleasure in presenting Twenty-fifth Annual
Report along with the audited Balance Sheet and Profit and Loss
Account, for the year ended 31 st March 2012.
FINANCIAL HIGHLIGHTS
(Rs. in Lacs )
Turnover 20395.43 14551.75
Other Income 142.58 58.36
Profit before tax 275.08 478.22
Less: Provision for current tax 54.92 139.55
Less: Net deferred tax liability 52.06 15.54
Profit for the year 168.10 323.13
Add: Balance brought forward 626.51 407.83
Profit available for appropriation 794.61 73D.96
Appropriation:
Transferred to General Reserve - 16.16
Proposed dividend 25.32 75.97
Tax on proposed dividend 4.11 12.32
Balance carried forward 765.18 626.51
OPERATIONS
During the year under review, despite challenging business environment,
the Company could grow its top line reasonably well. The Company has
achieved a turnover of Rs.120395.43 lacs during the year as compared to Rs.
14551.75 lacs during the previous year. The Profit after tax for the
financial year 2011-12 was Rs. 168.10 lacs as compared to Rs. 323.13 lacs
during the previous year. There was a pressure on bottom line due to
overall increase in operational expenses. Your Company has been working
hard to control costs, better utilization of available manufacturing
facilities and investing on product innovations. The Company expects
the continued focus on said measures, would help the Company to improve
its bottom line as well as top line in coming days.
FUTURE PLANS
The Company plans to strengthen its presence in branded fabrics, mainly
in linen, polyester viscose and polyester cotton blends. The Company
also plans to consolidate its existing business and continue its
efforts to control costs, better utilization of manufacturing
facilities and investing on product innovations. The Company expects
the continued focus on said measures, would help the Company to improve
its bottom line as well as top line in coming days.
The Company had received approval from SEBI for its draft letter of
offer of the proposed Rights Issue to shareholders. However, looking
at the present market scenario, the Rights Issue is kept on hold.
Future Group continues to be associated for strategic and marketing
initiatives. This helps the Company to counter competitors and assures
ready market for its quality products.
DIVIDEND
Your Directors are pleased to recommend a dividend ofRs. 0.50 per equity
share (i.e. 5%) on the equity capital of the Company for the year under
review.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis is presented as a separate section
forming part of this Annual Report.
CORPORATE GOVERNANCE REPORT '
A separate report on Corporate Governance is enclosed as a part of this
Annual Report. A Certificate of Auditors' of your Company regarding
compliance of conditions of Corporate Governance as stipulated in
clause 49 of the Listing Agreement with stock exchange is also enclosed
along with the Corporate Governance Report.
PARTICULARS OF EMPLOYEES
Particulars as required to be disclosed under section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are given in the Annexure At this Report.
PUBLIC DEFOSIT
The Company has not accepted any deposit from the public during the
financial year under review.
DIRF.CTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Rahul Mehta and 'Mr.
Sanjeev Maheshwari, Directors of the Company retire by rotation at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment. The details as required by clause 49 of the Listing
Agreement, are given as part of the general meeting notice.
The Board of Directors, subject to approval of members, have approved
reappointment of Mr. Pradip Kumar Goenka as Chairman and Managing
Director w.e.f. 26th August 2012 for a period of 3 years.
Mr. Lalit Kumar Goenka, Whole time Director has decided not to seek
reappointment after end of his present tenure on 25th August 2012 and
accordingly, he shall relinquish his office after the closure of
business hour of 25th August 2012. Board of Directors places on record
sincere appreciation for the services rendered by him.
Mr. Anil Biyani was appointed as an Additional Director of the Company
w.e.f. 29th May, 2012. He holds office till the date of the ensuing
Annual General Meeting. The Company has received a notice from a member
under section 257 of the Companies Act, 1956, signifying his intention
to propose Mr. Anil Biyani for the office of Director.
AUDITORS
M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as
Statutory Auditors up to the conclusion of the ensuing Annual General
Meeting and being eligible, offers themselves for re-appointment. They
have issued a certificate to the effect that their appointment, if
made, at the ensuing Annual General Meeting shall be within the limits
prescribed under section 224(1 B) of the Companies Act, 1956.
Shareholders are requested to appoint them as Statutory Auditors to
hold office up to the conclusion of the next Annual General Meeting and
to fix their remuneration.
COST AUDIT
Your Company is following the order issued under the section 209(1 )(d)
of the Companies Act, 1956 as amended in respect of manufacture of
textiles. The Company has been maintaining cost accounting records as
required in the above referred provision of the Companies Act, 1956 as
amended. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as
a cost auditor for the financial year 2012-13.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company hereby state and confirm that:
I. in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii. the selected accounting policies were applied consistently and the
Directors 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 as at 31 st March 2012 and that of the profit of the Company
for the year ended on that date;
iii. the proper and sufficient care have been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. the annual accounts have been prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO AND EXPORT INITIATIVE
Information pursuant to section 217(1)(e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in Report of Board of
Directors) Rules, 1988 is given as Form "A" & "B" is attached
and form part of this report. The Company being focusing in Indian
market, it has not taken any export initiative.
ACKNOWLEDGMENT
The Board wishes to place on record its sincere appreciation to all the
bankers, customers, employees at all levels and stakeholders for the
continued support and patronage during the year under review.
By Order of the Board
For Kamadgiri Fashion Limited
Place: Mumbai Pradip Kumar Goenka
Date: 11th August 2012 Chairman & Managing Director
Mar 31, 2010
The Directors have great pleasure in presenting 23rd Annual Report
along with the Audited Balance Sheet and Profit and Loss Account,
forthe year ended 31 st March, 2010.
FINANCIAL HIGHLIGHTS
(Rupees in Lacs)
2009-10 2008-09
Turnover 10535.27 8,252.20
Other Income 214.76 38.95
Profit before tax 275.83 114.55
Less: Provision for current tax 138.45 63.68
Add/Less: Net deferred tax assets/liability (20.47) (29.71)
Add/Less: Prior Period adjustment (3.25) 0.00
Less: Fringe Benefit tax 0.00 6.50
Profit after tax 157.85 74.10
Less/Add: tax adjustment of earlier year 12.98 (0.86)
Profit & Loss account balance brought forward 313.53 295.74
Profit available for appropriation 480.12 368.98
Appropriation:
General Reserve 4.19 -
Proposed dividend 59.25 47.40
Tax on proposed dividend 9.84 8.05
Balance carried to Balance Sheet 407.83 313.53
OPERATIONS
During the year under review, performance of your Company was
satisfactory. The Company has achieved a turnover of Rs. 105.35 Crores
during the year as compared to Rs.82.52 Crores during the previous
year. The Profit after tax for the financial year 2009-10 was Rs. 1.57
Crores as compared to Rs.74.10 Lacs during the previous year. The
better performance in the year under review was result of efficient and
better utilisation of available manufacturing facilities, conversion of
job work sales into direct processed & complete garment sales as well
as trading operations to meet raw material requirements for
manufacturing facilities and distribution.
FUTURE PLANS
During the current financial year, the Company have added 24 Tzudocoma
Airjet weaving machines to fullfill the ever growing demand of cotton
fabrics. With measures taken to achieve higher efficiencies it is
expected that the Current capacity will improve substantially.
As young India demands more and formal smart casual and casual
products, during the year under review, the Company converted one shirt
manufacturing unit for producing casual shirts. Also we started
offering a complete package of ready garment during the year under
review in comparison to major portion of job work or conversion in
2008-09.
True value grew its distribution business to new heights. "True Lines"
range got established with retailers as well as customers. We are
positioning it among the top brands in linen over the counter
distribution business. To improve its positioning, the offering has
been done through through innovative product catalogues. The Company
expects and targets quadruple growth of linen business during the
current year.
Future Group continues to be associated for strategic and marketing
initiatives. This help the Company to counter competitors and assures
ready market for its quality products.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 1.25/-
(12.50%) per equity share of Rs. 10/- each. The dividend will be
declared at the forthcoming Annual General Meeting by the members and
will be paid within the prescribe time limit to the members whose names
appear on the Register of Members as on 23rd September, 2010.
CORPORATE GOVERNANCE REPORT
A separate report on Corporate Governance is enclosed as a part of this
Annual Report. A Certificate of Auditors of your Company regarding
compliance of conditions of Corporate Governance as stipulated in
Clause 49 of the Listing Agreement with stock exchange is enclosed
herewith.
COMPLIANCE CERTIFICATE
Compliance Certificate as required under section 383Aof the Companies
Act, 1956 prepared and issued by HS Associates, Company Secretaries in
Practice, is annexed hereto.
PARTICULARS OF EMPLOYEES
No details as required under Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975,
are given, as there are no employees drawing remuneration in excess of
the prescribed limits.
PUBLIC DEPOSIT
The Company has not accepted any deposit from the public during the
financial year under review.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mr. Murarilal Goenka and Mr.
Lalit Kumar Goenka, Directors of the Company retire by rotation at the
ensuing Annual General Meeting andi^eing eligible offer themselves for
re-appointment. The details as required by clause 49 of the Listing
Agreement, is given as part of the general meeting notice. Mr. Ashwani
S. Bhatia was appointed as an Additional Director of the Company w.e.f.
30th October, 2009. He holds office till the date of the ensuing Annual
General Meeting. The Company has received a notice from a member
alongwith a deposit of Rs. 500/- proposing the candidature of Mr.
Ashwani Bhatia to the office of Director liable to retire by rotation
pursuant to Section 257 of the Companies Act, 1956. During the year,
Mr. Tilak Pradip Goenka resigned as Director.
AUDITORS
M/s. R. S. Agrawal & Associates, Chartered Accountants, Auditors of the
Company, retire at the ensuing Annual General Meeting. They have
expressed their unwillingness and unavailability to continue as
Auditors of the Company. The Board proposes to appoint M/s. Haribhakti
& Co., Chartered Accountants, leading audit firm, as the Auditors of
the Company in place of the retiring auditors at the ensuing Annual
General Meeting. M/s. Haribhakti & Co., Chartered Accountants have
issued a certificate to the effect that their appointment, if made at
the ensuing annual general meeting shall be within the limits
prescribed under section 224(1 B) of the Companies Act, 1956. In view
of the increased operations of the Company, post amalgamation, it would
be desirable to have a leading audit firm as the auditors of the
Company and hence your Directors recommend appointment of M/s.
Haribhakti & Co., Chartered Accountants as Statutory Auditors of the
Company and to fix their remuneration.
OBSERVATION IN AUDITORS REPORT
The Auditors have remarked about the provision being made for the leave
encashment for employees of the Company on actuarial basis, results
into change in the accounting policy of the Company. The impact on
Profit & Loss account and General Reserves was due to difference in
policy followed by the Company. For the year, the Company has made
uniform provision of leave encashment benefits for all its employees as
per provisions of AS-15.
With regard to the observation about the Internal Audit system,
management has to state that the same is under review and the proper
internal audit policy and procedure would be set up during the current
year.
COST AUDIT
Your Company is following the order issued under the Section 209(1 )(d)
of the Companies Act, 1956 as amended in respect of manufacture of
textiles. The Company has been maintaining cost accounting records as
required in the above referred provision of the Companies Act, 1956 as
amended. Ms. Ketki D. Visariya, CostAccountant, has been appointed as a
cost auditor for the financial year 2010-11.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of
Directors of the Company hereby state and confirm that:
i. in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures; ii. the selected accounting policies
were applied consistently and the Directors 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 as at 31st March, 2010 and that of the profit of the Company
forthe year ended on that date; iii. the proper and sufficient care
have been taken for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956 for
safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities; iv. the annual accounts have been
prepared on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in Report of Board of
Directors) Rules, 1988 is given in Annexure "A" & "B" is attached and
form part of this report. The Company being focusing in Indian market,
it has not taken any export initiative.
ACKNOWLEDGEMENT
The Board wishes to place on record their sincere appreciation to all
the bankers, customers, employees at all levels and stakeholders forthe
continued support and patronage during the year under review.
BY ORDER OF THE BOARD
FOR KAMADGIRI SYNTHETICS LIMITED
Sd/-
PRADIP KUMAR GOENKA
CHAIRMAN &MANAGING DIRECTOR
Date:August 31,2010
Place:Mumbai
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