Mar 31, 2012
Dear Shareholders,
The Directors have immense pleasure in presenting the 18th Annual
Report on the business and operations of the Company together with the
audited statements of accounts of the Company for the year ended 31st
March, 2012.
FINANCIAL HIGHLIGHTS
The financial results of the Company for the year under review are
compared below with the previous year''s results for your consideration:
(Rs. in Lacs)
For the year For the year
ended ended
31.03.2012 31.03.2011
Sale & Other Income 16703.13 54135.63
Profit/loss before Depreciation (19466.57) (41393.61)
Profit/loss before Tax (19650.78) (42720.99)
Income Tax Provision 0.00 0.00
Deferred Tax liability (6306.29) (16780.07)
Profit/loss after Tax (13344.99) (31393.81)
Profit & Loss Appropriation 46.13 61.86
Amt. brought forward from previous year (8281.33) 23174.34
Balance carried to Balance Sheet (21672.45) (8281.33)
TRANSFER TO RESERVES:
No portion of profits has been transferred to General Reserve Account
during the financial year.
DIVIDEND
In order to keep the continue phase of diversification, additional
funds will be required by your company. In pursuance of the same and
also to meet the future funds requirements of the Company, the Board of
Directors of your company decided to use their internal sources/funds,
along with the other sources, for meeting the said additional funds
requirements of the Company.
In view of the same, the directors of your company regret their
inability to recommend any dividend for the current financial year
ending on 31st March 2012.
SUBSIDIARY COMPANY:
During the Financial Year 2011-12, the Company has only one subsidiary
Company viz., M/s. DBG Retail Holdings Limited. The statement pursuant
to Section 212 of the Companies Act, 1956 is attached and forms part of
the Annual Report.
In accordance with Accounting Standard 21 relating to consolidated
financial statements your Directors have pleasure in attaching the said
consolidated financial statements, which form part of this report and
accounts. These statements have been prepared on the basis of audited
financial statements received from the Subsidiary Company as approved
by its Board.
PRIVATE PLACEMENT:
The Company with a view to expand its business and to integrate its IT
operations and for general corporate purposes as may be decided by the
Board in the best interest of the Company, it is proposed to raise
funds up to the tune of Rs. USD 200 Million in one or more tranches
through a public issues and/or on a private placement basis and/or QIP
within the meaning of Chapter VIII of SEBI (issue of Capital and
Disclosure Requirements) Regulations 2009 and/or preferential issue
and/or any other kind of public issue and/or Foreign Currency
Convertible Bonds ("FCCBs"), Optionally Convertible Debentures ("OCD"),
bonds with share warrant attached, Global Depository Receipts ("GDR"),
American Depository Receipts ("ADR") or any other equity related
instrument of the Company or a combination of the foregoing.
CORPORATE GOVERNANCE:
Committed to good corporate governance practices, your Company fully
confirm to standards set out by SEBI and other regulatory authorities
and has implemented and complied with most of its major stipulations.
Koutons Retail India Limited is committed to conduct the business of
the company with the highest level of integrity and transparency. The
commitment of your company is clearly reflected in the business
activities of the company. As per clause 49 of the Listing Agreement, a
report on Corporate Governance along with Compliance Certificate from
the Practising Company Secretary form part of the Annual Report.
Code of Conduct
As per Clause 49(I)(D), the Board of the Company has laid down Code of
Conduct for all the Board members of the Company and senior management
as well and the same has been posted on website of the Company. Annual
Compliance Report for the year ended 31st March 2012 has been received
from all the Board members and senior management of the Company
regarding the compliance of all the provisions of Code of Conduct.
Declaration regarding compliance by Board Members and senior management
personnel with the Company''s Code of Conduct is hereby attached as
annexure to this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis, forming part of this report as
required under clause 49(IV)(F) of the Listing Agreement with the stock
exchanges is annexed to this report.
DEPOSITS:
The Company has not accepted any deposit within the meaning of Section
58A of the Companies Act, 1956 read with the Companies (Acceptance of
Deposits) Rules, 1975 made there under.
LISTING FEES:
The equity shares of your company are listed on the Bombay Stock
Exchange Limited and National Stock Exchange of India Limited. The
annual listing fee for the financial year 2012-13 has been paid.
DEMATERIALISATION OF SHARES:
Your company has entered into agreements with the National Securities
Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) for dematerialization of the shares of the company.
Accordingly the shares of the company are available for
dematerialization and can be traded in Demat form.
DEMAT SUSPENSE ACCOUNT
As on 31.03.2012, 214 Equity Shares of 12 Shareholders were lying in
the Escrow Account due to non-availability of the correct particulars.
Despite of the several reminders being sent at the address given in the
Application form as well as captured in depository''s database, by the
Registrars to the Issue, viz., M/s Karvy Computer share Private Limited
no response has been received. As a result the said unclaimed shares
are/or being credited to the ''Koutons Retail India Limited - Demat
Suspense Account'' opened with Karvy Stock Broking Limited in view of
the compliance of the provisions of Clause 5A of the Listing Agreement.
Every successful allottee who has not received the shares in its demat
Account may approach the Company or its RTA with their correct
particulars and proof of their identity for crediting of the Shares
from the Demat Suspense Account to their individual demat Account. The
voting rights on these shares shall remain frozen till the rightful
owner of such shares claims the shares.
DIRECTORS: Changes since last Annual General Meeting
The following changes took place in the Board of Directors of the
Company since the date of last Annual General Meeting:
- Mr. Rajeev Khandelwal & Mr. Parvesh Ahuja have expressed their
inability to continue with their journey with the Company, due to their
personal preoccupations. They have resigned from the Board w.e.f 21s''
February 2012 & 18th July 2012. The Board expresses its gratitude
towards the contribution they made during their tenure, has resigned
from the post of Director of the Company and Board accepted the same.
- Mr. Ashwini Kumar and Mr J M Bharadwaj have been appointed on 17th
May 2012 & 15th June 2012 respectively as Additional Directors of the
Company in terms of the provisions of Section 260 of the Companies Act,
1956, they hold office upto the date of ensuing Annual General Meeting
of the Company.
It is proposed to regularize their appointment in the ensuing Annual
General Meeting.
Retirement of Directors by Rotation
Pursuant to the provisions of the Companies Act, 1956, Mr.D PS Kohli
and Mr. G SSawhney Directors of your Company, retire by rotation at the
ensuing Annual General Meeting of your Company, and being eligible,
have offered themselves for re- appointment.
Brief resume of the Directors proposed to be appointed / re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold directorship and membership/ chairmanship
of the Board / Committees, as stipulated in Clause 49 of the Listing
Agreement with the Stock Exchanges in India, are provided in the Report
on Corporate Governance forming part of the Annual Report.
STATUTORY DISCLOSURE:
The Directors of the Company have made necessary disclosures, as
required under various provisions of the Act and Clause 19 of the
Listing Agreement. , ,
AUDITORS AND AUDITORS'' REPORT
M/s. R Chadha & Associates, Chartered Accountants, statutory auditors
of the company, hold office until the conclusion of the forthcoming
Annual General Meeting and being eligible offer themselves for
re-appointment. Further M/s B Bhushan & Co., Chartered Accountants will
be appointed to act as Joint Auditor of the Company, hold office until
the conclusion of the forthcoming Annual General Meeting and being
eligible offer themselves for re-appointment. The Company has received
a letter from M/s R Chadha & Associates and M/s B Bhushan & Co. for
their appointment/reappointment, if made, would be within the
prescribed limits under Section 224(1B) of the Companies Act, 1956 and
that they are not disqualified for such appointment/reappointment
within the meaning of Section 226 of the said act.
The Notes on Accounts referred to in the Auditors'' Report are
self-explanatory and therefore do not call for any further comments.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules 1975,
none of the employee is in receipt of aggregate remuneration of Rs.
60,00,000/- or more if employed throughout the year.
DIRECTOR''S RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the Companies Act, the Directors
hereby confirm that:
1. in the preparation of the annual accounts for the year ended 31st
March, 2012, the applicable accounting standards had been followed
along with proper explanation relating to material departures;
2. 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 or
loss of the company for that period;
3. 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;
4. the Directors had prepared the annual accounts on a going concern
basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Information in accordance with the provisions of Section 217(l)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo is given below:
Information pursuant to section 217 (1) (e) of the Companies Act, 1956,
read with Companies (Disclosure of Particulars in the report of Board
of Directors) Rules, 1988, as amended and forming part of the
Directors'' Report for the financial year ended 31st March, 2012.
A. ENERGY CONSERVATION
a) Energy conservation measure taken Nil
b) Additional investment and proposal, if any, being implemented for
reduction of consumption Nil
c) Impact of measure at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods.
Nil
d) Total energy consumption and energy consumption per unit of
production: N.A
B. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
The particulars regarding absorption of technology is given below as
per Form B of the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988: FORM B
Form of Disclosure of particulars with respect to Absorption, Research
and Development (R&D)
(1) Specific areas in which R & D is carried out by the Company:
Manufacture of fashion garments as per Indian and international trends
and standards are the areas in which general research and development
work pertaining to the manufacturing process is carried out by the
Company.
(2) Benefits derived as a result of the above R&D:
Product Improvement.
(3) Future Plan of Action:
Appropriate actions are being planned.
(4) Expenditure on R&D:
(a) Capital:)
(b) Recurring:) Included in the
(c) Total:) manufacturing
(d) Total R&D expenditure as a percentage of total turnover) cost.
Technology Absorption, Adaptation and Innovation:
(1) Efforts in brief made towards technology absorption, adaptation and
innovation:
The Company is monitoring the technological upgradation taking place in
other countries in the field of garment manufacturing and the same are
being reviewed for implementation
(2) Benefit derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development, import substitution
etc.
Product Improvement.
(3) In case of Imported Technology (Imported during the last 5 years
reckoned from the beginning of the financial year), following
information may be furnished:
(a) Technology Imported: N.A
(b) Year of Import: N.A
(c) Has technology been fully absorbed NIL
(d) lfnotfullyabsorbed,areaswherethishasnottaken ) place, reasons
therefore and future plans of action: )
FOREIGN EXCHANGE EARNINGS AND OUT GO:
Activities relating to export : N.A.
initiatives to increase exports : N.A.
Developments of New export markets for products : N.A.
and services and Export plan :N.A.
During the year under review, the Company has not made any export of
its goods and services, whereas, the company has continued to maintain
focus on and avail of export opportunities based on economic
consideration.
Foreign Exchange Earning and Outgo:
(Rs. In Lacs)
a) Imports on C/F basis Nil
b) Expenditure in Foreign Currency (Foreign
traveling Directors) Nil
c) Earning in Foreign Currency 370.25
The Company mainly deals in domestic market.
ACKNOWLDEGEMENT
Your Directors would like to express their grateful appreciation for
the assistance and co-operation received from Banks, Government
Authorities and shareholders during the year under review. Your
Directors wish to place on record their deep sense of appreciation
forthe devoted services of the executives, staff and workers of the
Company for its success.
Date: 27 December 2012 For and on behalf of Board of Directors
Place: Gurgaon D P S Kohli
Chairman
Mar 31, 2011
Dear Shareholders,
The Directors have immense pleasure in presenting the 17th Annual
Report on the business and operations of the Company together with the
audited statements of accounts of the Company for the year ended 31st
March, 2011.
FINANCIAL HIGHLIGHTS
The financial results of the Company for the year under review are
compared below with the previous year's results for your
consideration:
(Rs.in lacs)
for the year ended For the year ended
31.03.2011 31.03.2010
Sale & Other Income 54135.63 120667.26
Profit /loss before Depreciation (41393.61) 14095.21
Profit /loss be fore Tax (42720.99) 12451.83
Income Tax Provision 0.00 4313.81
Deferred Tax liability (16780.07) (42.94)
Profit/loss aft er Tax (31393.81) 8179.97
Profit & Loss Appropriation 61.86 2266.53
Amt. brought forward from
previous year 23174.34 17260.90
Balance carried to Balance Sheet (8281.33) 23174.34
TRANSFER TO RESERVES:
No portion of profits has been transferred to General Reserve Account
during the financial year.
DIVIDEND
In order to keep the continues phase of diversification, additional
funds will be required by your company. In pursuance of the same and
also to meet the future funds requirements of the Company, the Board of
Directors of your company decided to use their internal sources/funds,
along with the other sources, for meeting the said additional funds
requirements of the Company.
In view of the same, the directors of your company regret their
inability to recommend any dividend for the current financial year
ending on 31st March 2011.
SUBSIDIARY COMPANY:
During the Financial Year 2010-11, the Company has only one subsidiary
Company viz., M/s. DBG Retail Holdings Limited. The statement pursuant
to Section 212 of the Companies Act, 1956 is attached and forms part of
the Annual Report.
In accordance with Accounting Standard 21 relating to consolidated
financial statements your Directors have pleasure in attaching the said
consolidated financial statements, which form part of this report and
accounts. These statements have been prepared on the basis of audited
financial statements received from the Subsidiary Company as approved
by its Board.
PRIVATE PLACEMENT:
The Company with a view to expand its business and to integrate its IT
operations and for general corporate purposes as may be decided by the
Board in the best interest of the Company, it is proposed to raise
funds to the tune of Rs.4,00,00,00,000/- 13 (Rupees Four Hundred
Crores Only) in one or more trenches through a public issues and/or on
a private placement basis and/or QIP within the meaning of Chapter VIII
of SEBI (issue of Capital and Disclosure Requirements) Regulations 2009
and/or preferential issue and/or any other kind of public issue and/or
Foreign Currency Convertible Bonds ("FCCBs"), Optionally Convertible
Debentures ("OCD"), bonds with share warrant attached, Global
Depository Receipts ("GDR"), American Depository Receipts ("ADR") or
any other equity related instrument of the Company or a combination of
the foregoing.
The resolution contained in the business of the Notice is regarding
proposal to create, offer, issue and allot equity shares and/or such
other Securities as stated in the Special Resolution (the "Securities")
which seeks to empower the Board of Directors (hereinafter referred to
as "Board" which include any Committee thereof, whether constituted or
to be constituted to undertake such issue or offer of securities.
The detail of the issue and other particulars are as under:-
(i)Securities to be issued: The Resolution set out in the accompany
Notice is an enabling resolution, entitling the Board to issue equity
shares or other securities convertible into or exchangeable with the
equity shares as may be deemed appropriate in the best interest of the
Company.
(ii) In case of issue of ADRs/GDRs the issue price shall be at a price,
being not less than the price calculated in accordance with applicable
law including the issue of Foreign Currency Convertible Bonds and
Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, as
may be amended from time to time.
(i) Terms of Shares: The equity shares to be issued as above shall rank
pari-passu in all respects with the existing equity shares of the
Company. The equity shares shall be subject to the Memorandum and
Articles of Association of the Company.
(ii) Purpose of issue: Expansion of business, Integration of IT
operations and up gradation of network, and for General Corporate
purpose as may be decided by the Board in the best interest of the
Company.
CORPORATE GOVERNANCE:
Committed to good corporate governance practices, your Company fully
confirm to standards set out by SEBI and other regulatory authorities
and has implemented and complied with all of its major stipulations.
Koutons Retail India Limited is committed to conduct the business of
the company with the highest level of integrity and transparency. The
commitment of your company is clearly reflected in the business
activities of the company. As per clause 49 of the Listing Agreement, a
report on Corporate Governance along with Compliance Certificate from
the Practicing Company Secretary form part of the Annual Report.
Code of Conduct
As per Clause 49(I)(D), the Board of the Company has laid down Code of
Conduct for all the Board members of the Company and senior management
as well and the same has been posted on website of the Company. Annual
Compliance Report for the year ended 31st March 2011 has been received
from all the Board members and senior management of the Company
regarding the compliance of all the provisions of Code of Conduct .
Declaration regarding compliance by Board Members and senior management
personnel with the Company's Code of Conduct is hereby attached as
annexure to this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis, forming part of this report as
required under clause 49(IV)(F) of the Listing Agreement with the stock
exchanges is annexed to this report.
DEPOSITS:
The Company has not accept any deposit within the meaning of Section
58A of the Companies Act, 1956 read with the Companies (Acceptance of
Deposits) Rules, 1975 made there under.
LISTING FEES:
The equity shares of your company are listed on the Bombay Stock
Exchange Limited and National Stock Exchange of India Limited. The
annual listing fee for the financial year 2011-12 has been paid.
DEMATERIALISATION OF SHARES:
Your company has entered into agreements with the National Securities
Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) for dematerialization of the shares of the company.
Accordingly the shares of the company are available for
dematerialization and can be traded in Demat form.
DEMAT SUSPENSE ACCOUNT:
As on 31.03.2011,197 Equity Shares of 11 Shareholders were lying in the
Escrow Account due to non-availability of the correct particulars.
Despite of the several reminders being sent at the address given in the
Application form as well as captured in depository's database, by the
Registrars to the Issue, viz., M/s Karvy Computer share Private Limited
no response has been received. As a result the said unclaimed shares
are/or being credited to the 'Koutons Retail India Limited - Demat
Suspense Account' opened with Karvy Stock Broking Limited in view of
the compliance of the provisions of Cause 5A of the Listing Agreement.
Every successful allotted who has not received the shares in its demat
Account may approach the Company or its RTA with their correct
particulars and proof of their identity for crediting of the Shares
from the Demat Suspense Account to their individual demat Account. The
voting rights on these shares shall remain frozen till the rightful
owner of such shares claims the shares.
DIRECTORS:
Changes since last Annual General Meeting
The following changes took place in the Board of Directors of the
Company since the date of last Annual General Meeting :
- Mr. Anil Kevin Khatod, Mr. Rajeev Grover, Mr. Ajay Mittal, Mr. K.
Santahanam, Mr. V.C. Sinha, Mr. G.C. Raghubir, Mr. V.K. Gupta and Mr.
G.S. Bhalla have resigned from the post of Director of the Company and
Board accepted the same.
- Mr. Parvesh Ahuja, Mr. Rajeev Khandelwal, Mr. Munish Kumar Katara
have been appointed on 03/02/2011 and Mr Dilvinder Singh has been
appointed on 20/08/2011 as Additional Directors of the Company on in
terms of the provisions of Section 260 of the Companies Act, 1956, they
hold office upto the date of ensuing Annual General Meeting of the
Company.
It is proposed to regularize their appointment in the ensuing Annual
General Meeting.
Retirement of Directors by Rotation
Pursuant to the provisions of the Companies Act, 1956, Mr. B S Sawhney
and Mr. Kailash Chandra Sharma, Directors of your Company, retire by
rotation at the ensuing Annual General Meeting of your Company and
being eligible, have offered themselves for re-appointment.
Brief resume of the Directors proposed to be appointed / re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold directorship and membership / chairmanship
of the Board / Committees, as stipulated in Clause 49 of the Listing
Agreement with the Stock Exchanges in India, are provided in the Report
on Corporate Governance forming part of the Annual Report.
STATUTORY DISCLOSURE:
None of the Directors of your Company is disqualified as per provision
of section 274(1)(g) of the Companies Act, 1956. The Directors of the
Company have made necessary disclosures, as required under various
provisions of the Act and Clause 19 of the Listing Agreement.
AUDITORS AND AUDITORS' REPORT
M/s. R. Chadha & Associates, Chartered Accountants, statutory auditors
of the company, hold office until the conclusion of the ensuing Annual
General Meeting. The Company has received a letter from M/s R. Chadha &
Associates for their appointment/re-appointment, if made, would be
within the prescribed limits under Section 224(1B) of the Companies
Act, 1956 and that they are not disqualified for such
appointment/reappointment within the meaning of Section 226 of the said
act.
The Notes on Accounts referred to in the Auditors' Report are
self-explanatory and therefore do not call for any further comments.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules 1975,
none of the employee is in receipt of aggregate remuneration of
Rs.60,00,000/- or more if employed throughout the year .
DIRECTOR'S RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the Companies Act, the Directors
hereby confirm that :
1. in the preparation of the annual accounts for the year ended 31st
March, 2011, the applicable accounting standards had been followed
along with proper explanation relating to material departures;
2. 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 or
loss of the company for that period;
3. 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;
4. the Directors had prepared the annual accounts on a going concern
basis.
ACKNOWLDEGEMENT
Your Directors would like to express their grateful appreciation for
the assistance and co-operation received from Banks, Government
Authorities and shareholders during the year under review. Your
Directors wish to place on record their deep sense of appreciation for
the devoted services of the executives, staff and workers of the
Company for its success.
For and on behalf of the Board of Directors
sd/-
Date: August 26, 2011 DPS Kohli
Place: Gurgaon Chairman
Mar 31, 2010
The Directors have immense pleasure in presenting the 16th Annual
Report on the business and operations of the Company together with the
Audited Statements of Accounts of the Company for the year ended 31st
March, 2010.
FINANCIAL HIGHLIGHTS
The financial results of the Company for the year under review are
compared below with the previous years results for your consideration:
(Rs. in Lacs)
For the year ended For the year ended
31.03.2010 31.03.2009
Sale & Other Income 120667.26 106313.48
Profit before
Depreciation 14095.21 13612.88
Profit before Tax 12451.83 12082.85
Income Tax Provision 4313.81 4040.96
FBT Provision 0.00 38.19
Deferred Tax liability (42.94) 46.96
Profit after Tax 8179.97 7955.71
Profit & Loss
Appropriation 2266.53 462.52
Amount brought forward
from previous year 17260.90 9704.77
Balance carried to
Balance Sheet 23174.34 17260.90
REVIEW OF PERFORMANCE
During the year, your Company recorded growth in to pline as well as in
bottom line. Income from operations went up from Rs 106313.48 lacs in
F.Y. 2008-09 to Rs. 120667.26 Lacs in F.Y. 2009-10 recording a growth
of 13.50 percent.
Profit before depreciation, Interest and tax stood at Rs. 23161.19 Lacs
in F.Y. 2009-10, an increase of 3.09 percent over the preceding year.
Profit after tax for F.Y. 09-10 was Rs 8179.97 Lacs, an increase of
2.82 percent over F.Y.08-09.
DIVIDEND:
Keeping in view the current economic scenario and future fund
requirements of the Company, your Directors have recommended a dividend
of 20 paisa per Equity Share for the financial year ended 31st March
2010, which on approval at the forthcoming Annual General, will be paid
(i) to those Equity Shareholders, holding shares in physical form,
whose name appear on the Register of Members of the Company at the
close of business hours on 23rd September, 2010 after giving effect to
all valid transfers in physical form lodged with the Company or its
Registrar and Share Transfer Agent before 24th September, 2010
(ii) to those beneficial owners, holding shares in electronic form,
whose name appear in the statement of beneficial owners furnished by
the Depositories to the Company as at the close of business hours on
23rd September, 2010 The total proposed dividend amount shall be
Rs.71,25,120/- (Rupees Seventy One Lacs Twenty Five Thousand One
Hundred and Twenty Only) including Dividend tax, for the financial year
2009-10 as against total dividend payout Rs 3,57,43,607/- for the
previous year.
The Register of members and share transfer books will remain closed
from 24th September 2010 to 30th September 2010 (both days inclusive).
The Annual General Meeting of the Company will be held on 30th
September 2010.
TRANSFER TO RESERVES:
No portion of profits has been transferred to General Reserve Account
during the financial year.
SUBSIDIARY COMPANY:
During the Financial Year 2009-10, the Company has only one subsidiary
Company viz., M/s. DBG Retail Holdings Limited. The statement pursuant
to Section 212 of the Companies Act, 1956 is attached and forms part of
the Annual Report.
In accordance with Accounting Standard 21 relating to consolidated
financial statements your Directors have pleasure in attaching the said
consolidated financial statements, which form part of this report and
accounts. These statements have been prepared on the basis of audited
financial statements received from the Subsidiary Company as approved
by its Board.
PRIVATE PLACEMENT:
The Company with a view to expand its business by way of opening its
family stores and to integrate its IT operations and for general
Corporate purposes as may be decided by the Board in the best interest
of the Company, it is proposed to raise funds to the tune of
Rs.4,00,00,00,000/- (Rupees Four Hundred Crores Only) in one or more
tranches through a public issues and/or on a private placement basis
and/or QIP within the meaning of Chapter VIII of SEBI (Issue of Capital
and Disclosure Requirements) Regulations 2009 and/or preferential issue
and/or any other kind of public issue and/or Foreign Currency
Convertible Bonds (ÃFCCBsÃ), Optionally Convertible Debentures (ÃOCDÃ),
Bonds with share warranted attached, Global Depositary Receipts
(ÃGDRsÃ), American Depositary Receipts (ÃADRsÃ) or any other equity
related instrument of the Company or a combination of the foregoing.
The resolution contained in the business of the Notice is regarding
proposal to create, offer, issue and allot equity shares and/or such
other Securities as stated in the Special Resolution (the ÃSecuritiesÃ)
which seeks to empower the Board of Directors (hereinafter referred to
as ÃBoardà which include any Committee thereof, whether constituted or
to be constituted) to undertake such issue or offer of securities.
The details of the issue and other particulars are as under:
(i) Securities to be issued: The Resolution set out in the accompanying
Notice is an enabling resolution, entitling the Board to issue equity
shares or other securities convertible into or exchangeable with the
equity shares as may be deemed appropriate in the best interest of the
Company.
(ii) In case of issue of ADRs / GDRs the issue price shall be at a
price, being not less than the price calculated in accordance with
applicable law including the Issue of Foreign Currency Convertible
Bonds and Ordinary Shares (Through Depository Receipts Mechanism)
Scheme, 1993, as may be amended from time to time.
(iii) Terms of Shares: The equity shares to be issued as above shall
rank pari-passu in all respects with the existing equity shares of the
Company. The equity shares shall be subject to the Memorandum and
Articles of Association of the Company.
(iv) Purpose of the issue: Expansion of Family Stores, Integration of
IT operations and up gradation of network, and for General Corporate
purposes as may be decided by the Board in the best interest of the
Company.
CORPORATE GOVERNANCE:
Committed to good corporate governance practices, your Company fully
conform to standards set out by SEBI and other regulatory authorities
and has implemented and complied with all of its major stipulations.
Koutons Retail India Limited is committed to conduct the business of
the company with the highest level of integrity and transparency. The
commitment of your company is clearly reflected in the business
activities of the company. As per clause 49 of the Listing Agreement, a
report on Corporate Governance along with Compliance Certificate from
the Practising Company Secretary form part of this Annual Report.
Code of Conduct
As per Clause 49(I)(D), the Board of the Company has laid down Code of
Conduct for all the Board members of the Company and senior management
as well and the same has been posted on website of the Company. Annual
Compliance Report for the year ended 31st March 2010 has been received
from all the Board members and senior management of the Company
regarding the compliance of all the provisions of Code of Conduct.
Declaration regarding compliance by Board members and senior management
personnel with the Companys Code of Conduct is hereby attached as
annexure to this report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis Report as required under the Listing
Agreement is annexed to this report.
DEPOSITS:
The Company has not accepted any deposit within the meaning of Section
58A of the Companies Act, 1956 read with the Companies (Acceptance of
Deposits) Rules, 1975 made thereunder.
AWARDS & RECOGNITION
The following are some of the recognitions that your Company won during
the year 2009-2010:
* Nominated in the Retail category for the 4th NDTV Profit Business
Leadership Award.
* Award of "Emerging Corporate" at the Corp Excel Award 2008 for
National mSME Excellence organized by Corporation Bank.
* Received ÃThe Star Retailer Awardà for being the Value Retailer of
the Year organized by Franchise India.
* The "Best Clothing Company of the Year" of CMAI.
* Nominated for the Best Advertising Campaign of the year by CMAI.
* Nominated for the ÃBrand of the Yearà by CMAI.
LISTING FEES:
The equity shares of your company are listed on the Bombay Stock
Exchange Limited and National Stock Exchange of India Limited. The
annual listing fee for the financial year 2010-11 has been paid.
DEMATERIALISATION OF SHARES:
Your company has entered into agreements with the National Securities
Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) for dematerialization of shares of the company.
Accordingly shares of the company are available for dematerialization
and can be traded in Demat form.
DEMAT SUSPENSE ACCOUNT:
As on 31.03.2010 214 Equity Shares of 12 Shareholders were lying in the
Escrow Account due to non-availability of the correct particulars.
Despite of the several reminders being sent at the address given in the
Application form as well as captured in depositorys database, by the
Registrars to the Issue, viz., M/s Karvy Computershare Private Limited
no response has been received. As a result the said unclaimed shares
are/or being credited to the Koutons Retail India Limited - Demat
Suspense Account opened with Karvy Stock Broking Limited in view of
compliance of the provisions of Clause 5A of the Listing Agreement.
Every successful allottee who has not received the shares in its demat
Account may approach the Company or its RTA with their correct
particulars and proof of identity for crediting of said shares from
Demat Suspense Account to their individual Demat Account. The voting
rights on these shares shall remain frozen till the rightful owner of
such shares claims the shares.
DIRECTORS:
Pursuant to provisions of the Companies Act, 1956, and Articles of
Association of the Company, Mr. Krishnamurthy Santhanam, Mr. Girish
Chandra Raghubir, and V.C. Sinha, Directors of the Company, retire by
rotation at the ensuing Annual General Meeting and being eligible, have
offer themselves for re-appointment.
Your Directors recommend their re-appointment.
Brief resume of the Directors proposed to be appointed / re-appointed,
nature of their expertise in specific functional areas and names of
companies in which they hold directorship and membership / chairmanship
of the Board / Committees, as stipulated in Clause 49 of the Listing
Agreement with the Stock Exchanges in India, are provided in the Report
on Corporate Governance forming part of the Annual Report.
Further, Mr. Anil K. Khatod, Mr. Rajiv Grover and Mr. Ajay Mittal has
resigned from the post of directorship.
STATUTORY DISCLOSURE:
None of the Directors of your Company is disqualified as per provision
of section 274(1)(g) of the Companies Act, 1956. The Directors of the
Company have made necessary disclosures, as required under various
provisions of the Act and Clause 49 of the Listing Agreement.
AUDITORS
The Statutory Auditors of the Company, M/s. R. Chadha & Associates,
Chartered Accountants, retire at the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment. The Company has
received a letter from M/s R. Chadha & Associates to the effect that
their re-appointment, if made at the ensuing Annual General Meeting,
would be within the limits prescribed under Section 224(1B) of the
Companies Act, 1956 and that they are not disqualified for such
reappointment within the meaning of Section 226 of the said act.
AUDITORS REPORT
The observations made by the Auditors with reference to notes on
accounts for the year ended 31st March 2010 are self- explanatory and
therefore do not call for any further comments under section 217(3) of
the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217 (2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules 1975, the
particulars of employees are set out in annexure to this Report.
DIRECTORS RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the Companies Act, 1956 the
Directors hereby confirm that :
1. in the preparation of the Annual Accounts for the period ended as
on 31st March 2010, the applicable Accounting Standards had been
followed along with proper explanation relating to material departures;
2. 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 or
loss of the company for that period;
3. 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;
4. the Directors had prepared the annual accounts on a going concern
basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
Information in accordance with the provisions of Section 217(1)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo is given below:
A. CONSERVATION OF ENERGY:
The operations of your Company are not energy intensive. However,
wherever possible your company strives to curtail the consumption of
energy on a continued basis by using energy-efficient equipment
As energy costs comprise a very small part of your Companys total
expenses, the financial implications of these measures are not
material.
B. TECHNOLOGY ABSORPTION
The particulars regarding absorption of technology is given below as
per Form B of the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988:
Research and Development (R & D):
(1) Specific areas in which R&D is carried out by the Company:
Manufacture of fashion garments as per Indian and international trends
and standards are the areas in which general research and development
work pertaining to the manufacturing process is carried out by the
Company.
(2) Benefits derived as a result of the above R&D:
Product Improvement
(3) Future Plan of Action:
Appropriate actions are being planned.
(4) Expenditure on R&D:
(a) Capital: )
(b) Recurring: ) Included in the
(c) Total: ) manufacturing
(d) Total R&D expenditure
as a percentage of total turnover ) cost.
Technology Absorption, Adaptation and Innovation:
(1) Efforts in brief made towards technology absorption, adaptation and
innovation:
The Company is monitoring the technological upgradation taking place in
other countries in the field of garment manufacturing and the same are
being reviewed for implementation
(2) Benefit derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development, import substitution
etc.
Product Improvement.
(3) In case of Imported Technology (Imported during the last 5 years
reckoned from the beginning of the financial year), following
information may be furnished:
(a) Technology Imported: )
(b) Year of Import: )
(c) Has technology been fully absorbed ) NIL
(d) If not fully absorbed, areas where this has not taken )
place, reasons therefore and future plans of action: )
C. FOREIGN EXCHANGE EARNINGS AND OUT GO:
Foreign Exchange Earning and Outgo:
(Rs. in Lacs)
a) Imports on CIF basis 36.83
b) Expenditure in Foreign Currency
(Foreign traveling Directors) 36.08
c) Earning in Foreign Currency NIL
Initiatives taken to increase Exports:
The Company mainly deals in domestic market and has NIL sales on
account of exports during the Financial Year 2009- 10. Hence details
regarding followings are not applicable:
1) Activities relating to exports
2) Development of new export markets for products and services
3) Export plan
ACKNOWLDEGEMENT
Your Directors would like to express their grateful appreciation for
the assistance and co-operation received from Banks, Government
Authorities and shareholders during the year under review. Your
Directors wish to place on record their deep sense of appreciation for
the devoted services of the executives, staff and workers of the
Company for its success.
For and on behalf of the Board of Directors
Date: September 4th, 2010 DPS Kohli
Place: Gurgaon Chairman
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