To
The Members,
Your Board of Directors are pleased to present the 32nd Annual Report
together with the Audited Accounts of the Company for the year ended March 31, 2023.
FINANCIAL SUMMARY & HIGHLIGHTS (STANDALONE)
(Rs In Lakhs)
Particulars No. |
Year Ended March 31, 2023 |
Year Ended March 31, 2022 |
1 Net Sales/Income from operations |
77,945.34 |
60760.98 |
2 Other Income |
2,024.56 |
1686.14 |
3 Total Expenditure |
64,262.49 |
51912.47 |
4 Gross profit (Before deducting any of the following) |
17218.98 |
11689.88 |
a. Finance charges |
638.53 |
452.60 |
b. Depreciation/Amortisation |
873.04 |
702.63 |
c. Tax provision |
3779.31 |
2369.17 |
5 Net profit for the Period |
11,928.10 |
8165.48 |
6 Other Comprehensive Income |
(75.61) |
54.84 |
7 Total of Comprehensive Income (net of tax) |
11,852.49 |
8220.32 |
8 Profit b/f from previous years |
28,784.51 |
24261.71 |
9 Appropriation of profit |
4,930.02 |
3697.51 |
i) Dividend on equity shares |
4,930.02 |
3697.51 |
ii) Transfer to Business Progressive fund |
- |
- |
10 Dividend (in Rs) per ordinary share |
5 |
19* |
11 Paid up Equity capital |
6162.52 |
6162.52 |
12 Reserves except revaluation reserve |
12872.38 |
12872.38 |
*Note : Rs 10 dividend was declared before the bonus issue and Rs 9 dividend declared
after bonus issue.
OVERALL PERFORMANCE AND STATE OF COMPANY AFFAIRS
The Company achieved record operating revenues of Rs 77,945.34 lakhs in FY 2023 as
against Rs 60,760.98 lakhs in FY 2022, registering an impressive growth of 28.28% y-o-y
backed by an impressive margin profile with EBITDA of Rs 15,194.42 lakhs in FY 2023 as
compared to Rs 10,003.74 lakhs in the previous year. EBITDA margin stood at 19.49% in FY
2023 as compared to 16.46% in the previous year, an improvement of nearly 300 bps. The
Company on the back of an impressive all-round robust performance reported an increase in
its net profit on a yearly basis. The profit after tax for the first time in the Company's
history crossed the Rs 100 crore mark and increased to an all time high of Rs 11,928.10
lakhs in FY2023 as against Rs 8,165.48 lakhs in FY2022. Net Profit Margin rose to 14.92%
in FY2023 as compared to 13.08% in FY2022.
OVERVIEW OF INDUSTRY AND IMPORTANT CHANGES IN THE INDUSTRY
After navigating the unpleasant events during the COVID-19 hit period, the sector
started showing signs of a revival. A sequential improvement in demand due to normalised
inventory levels at the retailers' end, correction in cotton prices and freight costs
(amid the cool off in inflation) and better utilisation provided a much needed boost to
EBITDA margin. India's textile and apparel exports (including handicrafts) stood at US$
44.4 billion in FY22, a 41% increase Y-o-Y. Resurgence in economic activities boosted
sales recovery and sales bounced back swiftly after being impacted by the third wave in
January and
February 2022. Revenues have surged past the pre-pandemic levels. Higher inflation and
increase in prices of essential goods have been impacting overall consumption. However,
the demand environment is expected to normalise on account of moderating inflation, rural
revival, government spending and high remittances. This, in turn, is expected to result in
footfall recovery in FY24. The future of the Indian textile and apparel industry looks
promising, buoyed by strong domestic consumption boosted by favourable demographics,
rising disposable incomes and low penetration of organised retail.
With continued government support, will just aid this growth potential for the players.
The H 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major boost for the
manufacturers. The scheme proposes to incentivise MMF (man-made fibre) apparel, MMF
fabrics and 10 segments of technical textiles products. The Textile Ministry of India
earmarked H 690 crore (US$ 106.58 million) for setting up 21 readymade garment
manufacturing units in seven states for development and modernisation of the Indian
textile sector. With all these positive factors, the Indian textile and apparel industry
is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India
has a 4% share of the global trade in textiles and apparel.
EXTERNAL ENVIRONMENT AND ECONOMIC OUTLOOK
The Indian economy exhibited robust resilience in 2022-23 amidst a global turmoil, and
recorded a growth of 7.0%, the highest among major economies in the world. Barring the
Omicron wave scare early in the year 2022, the impact of the Covid-19 pandemic was largely
receding for most part of the year helping in restoration of consumer and business
confidence. Sound macroeconomic fundamentals, a resilient financial system and a
deleveraged corporate sector imparted resilience to counter the adverse global spillovers.
The second advance estimates (SAE) of national income that were released by the National
Statistical Office (NSO) on February 28, 2023 indicated that aggregate demand, measured by
real GDP, registered a growth of 7.0% in 2022-23 vis-a-vis 9.1% growth a year ago. This
optimistic growth stem in part from the resilience of the Indian economy seen in the
rebound of private consumption seamlessly replacing the export stimuli as the leading
driver of growth. The uptick in private consumption has also given a boost to production
activity resulting in an increase in capacity utilisation across sectors.
Domestic Indian economic activity does face challenges from an uninspiring global
outlook going forward, but resilient domestic macroeconomic and financial conditions,
expected dividends from past reforms and new growth opportunities from global geo-economic
shifts, place India at an advantageous position. The fundamentals of the Indian economy
are sound as it enters its Amrit Kaal, the 25-year journey towards its centenary as a
modern, independent nation and the real GDP growth for 2023-24 is projected at 6.5% with
risks evenly balanced.
TRANSFER TO RESERVES
During the year under review no amount was transferred to the reserves.
SHARE CAPITAL
There is no change in share capital during the financial year 2022-23.
DIVIDEND
The total dividend for the year ended March 31, 2023 stood at Rs 5/- per share (on a
equity share capital of 6,16.25,185 shares of Rs 10/- each) as compared to Rs 19/- per
share (on a equity share capital of 1,23,25,037 shares of Rs 10/- each) in the previous
year ended March 31, 2022.
Your Board of Directors had in their meeting held on October 21, 2022 declared the 1st
interim dividend of Rs 3/- (30%) per equity share absorbing a sum of Rs1848.75 lakhs. The
record date for the purpose of payment of interim dividend was November 7, 2022 and the
said interim dividend was paid in November 2022.
Your Board of Directors had in their meeting held on April 27, 2023 declared the 2nd
interim dividend of Rs 2/- (20%) per equity share absorbing a sum of Rs1232.50 lakhs. The
record date for the purpose of payment of interim dividend was May 11, 2023 and the said
interim dividend was paid in May 2023.
Your Board has decided not to recommend final dividend for the financial year ended
March 31, 2023.
DIVIDEND DISTRIBUTION POLICY
Your Company has formulated Dividend Distribution policy in terms of Regulation 43A of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Annual dividend generally consists of a few interim dividend and a final dividend
at the year end. The Board of Directors seeks to balance member needs of returns and
company's requirement of long term growth. After meeting internal cash balance towards any
strategic investments, the Company will endeavour to return the rest of the free cash
generated to shareholders through regular dividend.
The said policy as approved by your Board of Directors has been uploaded on the website
of the Company. The dividend distribution policy is available on https://kewalkiran.com/
uploads/2018/12/Dividend_Distribution_policy.pdf
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF YOUR COMPANY
There have been no material changes and commitments, which affect the financial
position of your company which have occurred between the end of the financial year to
which the financial statements relate and the date of this Report. There is no change in
the nature of business of your Company.
DISCLOSURES RELATING TO SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
White Knitwears Private Limited is a joint venture of your Company and K-Lounge
Lifestyle Limited is a wholly owned subsidiary of your Company.
FINANCIAL STATEMENTS
Your Company has prepared the Consolidated Financial Statement in accordance with the
applicable Accounting Standards. The audited consolidated financial statements together
with the Auditor's Report form part of the Annual Report.
White Knit wears Private Limited and K-Lounge Lifestyle Limited are yet to commence its
respective business.
Pursuant to Section 129(3) of the Companies Act, 2013 a statement containing the
salient features of the financial statements of the Joint Venture and the subsidiary is
attached to the Financial Statements in Form AOC-1.
The Financial Statements of your Company, Consolidated Financial Statements along with
relevant documents and separate audited accounts in respect of joint venture and the
subsidiary, are available on the website of your Company www.kewalkiran.com
CASH FLOW STATEMENT
In conformity with the provisions of Regulation 34(2)(c)of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the Standalone and Consolidated Cash Flow
Statements for the year ended March 31, 2023 forms a part of this Annual Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR)
In conformity with the provisions of Regulation 34 (2)(f) of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, interalia the Business
Responsibility and Sustainability Report forms a part of this annual report.
CREDIT RATING
CRISIL, India's leading ratings, research, risk and policy advisory company has
assigned AA- / Stable' for the banking facilities of the company. This will further
ensure superior credit terms from the financial market and banks.
INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Unclaimed Dividend
Pursuant to the provisions of Section 124(5) of the Companies Act, 2013, if the
dividend transferred to the Unpaid Dividend Account of the Company remains unpaid or
unclaimed for a period of seven years from the date of such transfer then such unclaimed
or unpaid dividend shall be transferred by the Company along with interest accrued, if any
to the Investor Education and Protection Fund (the I EPF'), a fund established under
sub-section (1) of section 125 of the Act. The details of unclaimed/unpaid dividend are
available on the website of your Company viz. www.kewalkiran.com
The Company had during the financial year, accordingly, transferred to IEPF, the unpaid
and unclaimed dividend amounts pertaining to 4th interim 2014-15 of Rs 4365/-,
Final Dividend 2014-15 of Rs 3,805/-, 1st Interim Dividend 2015-16 of Rs
64,820/- 2nd Interim Dividend 2015-16 of Rs 13,796/-, 3rd Interim
Dividend 2015-16 of Rs 23,968/-.
Mandatory Transfer of Shares to Demat Account of Investors Education and Protection
Fund Authority (IEPFA) in case of unpaid/ unclaimed dividend on shares for a consecutive
period of seven years
In terms of Section 124(6) of the Companies Act, 2013 read with Rule 6 of the Investor
Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules,
2016, (as amended from time to time) (IEPF Rules) shares on which dividend has not been
paid or claimed by a shareholder for a period of seven consecutive years or more are to be
credited to the Demat Account of Investor Education and Protection Fund Authority (IEPFA)
within a period of thirty days of such shares becoming due to be so transferred.
Upon transfer of such shares, all benefits (like bonus, etc.), if any, accruing on such
shares shall also be credited to such Demat Account and the voting rights on such shares
shall remain frozen till the rightful owner claims the shares. Shares which are
transferred to the Demat Account of IEPFA can be claimed back by the shareholders from
IEPFA by following the procedure prescribed under the aforesaid rules. The Company sends
out individual communication to the concerned Members whose shares are liable to be
transferred to IEPFA on a continuous basis, to take immediate action in the matter.
An aggregate of 2,035 shares are transferred to the IEPFA till date.
The below mentioned is the information relating to outstanding dividend accounts and
the due dates for claiming dividends.
Financial year |
Date of allotment/ declaration |
Unclaimed Dividend (in Rs) |
Last date for claiming dividend |
Final Dividend 2015-16 |
September 7, 2016 |
9891 |
October 13, 2023 |
1st Interim Dividend 2016-17 |
October 27, 2016 |
18756 |
December 2, 2023 |
2nd Interim Dividend 2016-17 |
January 27, 2017 |
23222 |
March 4, 2024 |
Final Dividend 2016-17 |
September 7, 2017 |
3207 |
October 13, 2024 |
1st Interim Dividend 2017-18 |
April 25, 2017 |
20272 |
May 25, 2024 |
2nd Interim Dividend 2017-18 |
October 14, 2017 |
16750 |
November 20, 2024 |
3rd Interim Dividend 2017-18 |
January 18, 2018 |
56259 |
February 23, 2025 |
4th Interim Dividend 2017-18 |
March 10, 2018 |
18595 |
April 15, 2025 |
Final Dividend 2017-18 |
September 4, 2018 |
9060 |
October 8, 2025 |
1st Interim Dividend 2018-19 |
July 21, 2018 |
24556 |
August 23, 2025 |
2nd Interim Dividend 2018-19 |
October 25, 2018 |
35440 |
November 29, 2025 |
3rd Interim Dividend 2018-19 |
January 23, 2019 |
63940 |
February 26, 2026 |
4th Interim Dividend 2018-19 |
March 7, 2019 |
31095 |
April 13, 2026 |
Final Dividend 2018-19 |
September 18, 2019 |
6870 |
October 19, 2026 |
Financial year |
Date of allotment/ declaration |
Unclaimed Dividend (in Rs) |
Last date for claiming dividend |
1st Interim Dividend 2019-20 |
June 20, 2019 |
37642 |
July 23, 2026 |
2nd Interim Dividend 2019-20 |
October 22, 2019 |
35160 |
November 22, 2026 |
3rd Interim Dividend 2019-20 |
January 28, 2020 |
64350 |
March 3, 2027 |
4th Interim Dividend 2019-20 |
May 26, 2020 |
23140 |
July 2, 2027 |
Final dividend 2019-2020 |
September 15, 2020 |
7812 |
October 22, 2027 |
1st Interim Dividend 2020-21 |
October 22, 2020 |
52979 |
November 27, 2027 |
2nd Interim Dividend 2020-21 |
January 22, 2021 |
60690 |
February 25, 2028 |
1st Interim Dividend 2021-22 |
October 28, 2021 |
52477 |
December 3, 2028 |
2nd Interim Dividend 2021-22 |
January 27, 2022 |
125681 |
March 4, 2029 |
3rd Interim Dividend 2021-22 |
May 11, 2022 |
144112 |
June 11, 2029 |
1st Interim Dividend 2022-23 |
October 21, 2022 |
292599 |
November 23,2029 |
The web-addresses of the company and IEPF Authority, where the details of unpaid and
unclaimed amounts lying with the company are uploaded, are
https://kewalkiran.com/investor. html#Unpaid+Dividend+Data and
http://www.iepf.gov.in/
NODAL OFFICER
The nodal officer appointed by your company under the provisions of IEPF is Mr. Abhijit
Warange, Vice President - Legal & Company Secretary and the web-address on which the
said details are available is https://kewalkiran.com/investor. html#IEPF+Nodal+Officer
DIRECTORS
Re-appointment of Director retiring by rotation
In accordance with the provisions of the Companies Act, 2013 and the Articles of
Association of your company, Mr. Dinesh P. Jain (DIN: 00327277), Director of your Company
would retire by rotation at the ensuing Annual General Meeting and being eligible has
offered himself for re-appointment.
KEY MANAGERIAL PERSONNEL
Your Company has recognised the following persons as Key Managerial Personnel (KMP) in
accordance with the Companies Act, 2013.
1. Mr. Kewalchand P. Jain - Chairman and Managing Director
2. Mr. Hemant P. Jain - Joint Managing Director
3. Mr. Dinesh P. Jain - Whole-time Director
4. Mr. Vikas P. Jain - Whole-time Director
5. *Mr Bharat Adnani - Chief Financial Officer (CFO)
6. *Mr. Nimesh Anandpara - Deputy Chief Financial Officer
7. Mr. Abhijit Warange - Vice President - Legal & Company Secretary
*Mr Bharat Adnani was appointed as CFO & KMP w.e.f January 21, 2023 * Mr. Nimesh
Anandpara was appointed as KMP w.e.f. May 11, 2022.
COMPLIANCE WITH THE CODE OF CONDUCT
Your company has put in place a Code of Conduct effective January 14, 2006, for its
Board Members and Senior Management Personnel. Declaration of compliance with the Code of
Conduct has been received from all the Board Members and Senior Management Personnel as
stipulated under Regulation 26(3) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. A certificate to this effect from the Chairman &
Managing Director forms a part of this Report.
COMPLIANCE WITH THE CODE OF INDEPENDENT DIRECTORS
Your company has put in place a Code of Independent Director approved in the Board
Meeting held on May 10, 2014, for its Independent Directors. Declaration of compliance
with the code has been received from all the Independent Directors of your Company as
required under Section 134 (3) (d) of Companies Act, 2013 and SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015. A certificate to this effect from the
Chairman and Managing Director forms a part of this Report.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received declarations from all the Independent Directors of the Company
confirming that they meet with the criteria of independence as prescribed under Sub
Section (6) of Section 149 of the Companies Act, 2013 read with Rule 6(1) and (2) of the
Companys (Appointment and Qualification of Directors) Rules, 2014 together SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
GENERAL
Your Directors state that no disclosure or reporting is required in respect of the
following items as there were no transactions on these items during the year under review:
1. Issue of Equity Shares with differential rights as to dividend, voting or otherwise.
2. Issue of shares (including Sweat Equity Shares) to employees of the Company under
any scheme and ESOS.
3. Issue of shares pursuant to SEBI (Employees Stock Option scheme) Regulations and
SEBI (Share Based Employee Benefit) Regulation, 2014.
4. Issue of shares on Preferential basis pursuant to Section 62 of Companies Act, 2013
and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BOARD MEETINGS
The details of the number and dates of meetings of the Board of Directors held during
the Financial Year 2022-23 forms part of the Corporate Governance Report.
COMMITTEES
The disclosure of composition of all Committees constituted by your Board under the Act
and the Listing Regulations and the changes if any in the composition of such Committees
during the year as well as the number and dates of the meetings of the Committee are given
in the Corporate Governance report, which forms part of this Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 134(3)(c) read with Section 134(5) of the
Companies Act, 2013 with respect to Director's Responsibility Statement, it is hereby
confirmed that:
(a) in the preparation of the annual accounts for the financial year ended March 31,
2023, the applicable accounting standards had been followed along with proper explanation
relating to material departures;
(b) 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 true and
fair view of the state of affairs of the Company at the end of the financial year and of
the profit and loss of the Company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013 for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
(d) the directors had prepared the accounts for the financial year ended March 31, 2023
on a going concern' basis;
(e) the directors had laid down internal financial controls to be followed by the
company and that such internal financial controls are adequate and were operating
effectively;
(f) the directors had devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.
INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS
Your Company has an Internal Control system, commensurate with the size, scale and
complexity of its operations. The Internal Auditors monitor and evaluate the efficacy and
adequacy of the Internal Control System in the Company, its compliance with operating
systems, accounting procedures and policies at all the Company locations. Based on the
report of Internal Auditors, process owners undertake corrective action in their
respective areas and thereby strengthen the controls.
The Audit Committee of the Board of Directors actively reviews the adequacy and
effectiveness of the Internal Control System and suggests improvements to strengthen the
same.
The Audit Committee of the Board of Directors, Statutory Auditors and the Business
Heads are periodically apprised of the Internal Audit findings and corrective actions
taken. Audit plays a key role in providing assurance to the Board of Directors.
Significant audit observations and corrective actions thereon are presented to the Audit
Committee of the Board.
Your Board has also reviewed the Internal Processes,
System and the Internal Financial Control and the Directors' Responsibility Statement
contain a confirmation as regards adequacy of the Internal Financial Controls.
Details of Internal Financial Controls and its adequacy are included in the Management
Discussion and Analysis Report (MDAR') which forms part of this Report.
AUDITORS
The Members of the Company in the 31st Annual General Meeting held on
September 6, 2022 had appointed M/s. Jain & Trivedi, Chartered Accountant, as the
Statutory Auditors and M/s. N.A. Shah Associates LLP as the Joint Statutory Auditors of
the Company for a period of five years i.e. to hold office from the conclusion of 31st
Annual General Meeting till the conclusion of the 36th Annual General Meeting
of the Company to be held in the year 2027.
AUDIT REPORT
There are no Qualification or Adverse Remark in the Auditors report which require any
explanation from the Board of Directors. The Auditors Report on financial statements
forming part of this Annual Report is self-explanatory and do not call for any further
comments. During the year under review, no frauds were reported by the auditor under
section 143(12) of Companies Act, 2013.
DEPOSITS
Your Company has not accepted any public deposits within the meaning of Section 73 and
74 of the Companies Act, 2013 read with Companies (Acceptance of Deposit) Rules, 2014
during Financial Year 2022-23.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT,
2013
Other than a loan for an amount of H 286.12 Lacs (including interest) to its wholly
owned subsidiary K-Lounge Lifestyle Limited your Company has not given any other loans or
guarantee during the financial year 2022-23. The acquisitions of securities of any other
body corporate are within the limit specified u/s 186 of the Companies Act, 2013. The
details of the same are given in the notes to financial statements.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The details of conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with
Rule 8 of the Companies (Accounts) Rules, 2014 is given as Annexure I.
RELATED PARTY TRANSACTIONS
Suitable disclosure as required by the Accounting Standard (AS-24) has been made in the
notes to the Financial Statement.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN
SUB-SECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013
The particulars of contracts or arrangements with related parties referred to in
Section 188(1) of the Companies Act, 2013 is given in Annexure - II.
There were no material related party transaction during the year under review with
Promoters, Directors or Key Managerial Personnel which may have potential conflict of
interest with the company at large. The Company has developed a Related Party transactions
framework through standard operating procedures for the purpose of identification and
monitoring of such transactions.
All Related Party Transactions are placed before the Audit Committee. A statement of
all Related Party Transactions is placed before Audit Committee for its review on a
quarterly basis, specifying the nature, value and terms and conditions of the transactions
for approval. The policy on Related Party transactions as approved by the Board of
Directors has been uploaded on the website of the Company. The web- link to the Related
Party Policy is https://kewalkiran.com/ uploads/2019/01/Related_party_policy.pdf
RISK MANAGEMENT
Your Company has a Risk Management Committee which has been entrusted with the
responsibility to assist the Board in
(a) Overseeing and approving the Company's enterprise wide risk management framework;
and (b) Overseeing that all the risks that the organisation faces such as strategic,
financial, credit, market, liquidity, security, property, IT, legal, regulatory,
reputational and other risks have been identified and assessed and there is an adequate
risk management infrastructure in place capable of addressing those risks.
The Committee has adopted a Risk Management Policy in accordance with Companies Act,
2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 which
has been approved by Board of Directors.
Your Company manages, monitors and reports on the principal risks and uncertainties
that can impact its ability to achieve its strategic objectives. Your Company's management
systems, organisational structures, processes, standards, code of conduct and behaviours
together governs how the Group conducts the business of the Company and manages associated
risks.
VIGIL MECHANISM / WHISTLE BLOWER POLICY
Fraud free and corruption free work culture has been core of your company. In view of
the potential risk of fraud and corruption due to rapid growth and geographic spread of
operation, your company has put an even greater emphasis to address this risk.
To meet this objective your company has adopted a Whistle Blower Policy establishing
Vigil Mechanism to provide a formal mechanism to the Directors and employees to report
their concern about unethical behavior, actual or suspect fraud or violation of the
Company's Code of Conduct or ethics policy. The Policy provides for adequate safeguards
against victimisation of employee who avail of the mechanism and also provides for direct
access to the Chairman of the Audit Committee.
It is affirmed that no personnel of the company have been denied access to the Audit
Committee in the Financial Year 2022-23.
The Policy on whistle blower/ vigil mechanism may be accessed on the Company website at
https://kewalkiran.com/ uploads/2019/01/Whistle_Blower_Policy.pdf
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
There are no significant and/or material orders passed by the Regulators or Courts or
Tribunal which would impact the going concern status of the Company and its future
operation.
SECRETARIAL AUDIT
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with rule 9
of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the
Company has appointed Mr. Ummedmal P. Jain, proprietor of M/s U. P. Jain & Co (C.P.
No. 2235) to undertake the Secretarial Audit of the Company. The Secretarial Audit Report
is included as Annexure III and forms an integral part of this report.
There are no Qualification, Reservation or Adverse Remark in the Secretarial Audit
report which require any explanation from the Board of Directors.
SECRETARIAL STANDARDS
Your company has complied with all applicable Secretarial Standards issued by Institute
of Company Secretaries of India on Meetings of Board of Directors, General Meeting,
Dividend and The Board's Report.
COMPANY'S POLICY ON DIRECTOR'S APPOINTMENT, REMUNERATION AND EVALUATION
In terms of the applicable provision of the Companies Act, 2013 read with rules made
there under and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
your Board had approved the Nomination and Remuneration Policy and Evaluation Policy as
recommended by Nomination and Remuneration Committee, in the Board Meeting held on October
10, 2014. The Nomination and Remuneration Committee has incorporated the criteria for
determining qualifications, positive attribute and independence of Director in the
Nomination and Remuneration and Evaluation Policy in terms of provision of Section 178(3)
and Regulation 19 of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015. Company's policy on directors' appointment and remuneration and the criteria for
determining qualifications, positive attributes and independence of a Director is given at
https://kewalkiran.com/uploads/2018/12/nomination_and_ remuneration_policy.pdf
The said policy envisages the criteria for selection and appointment of Board Members
like determining qualification, positive attributes and independence of director, etc. It
also lays down the framework in relation to remuneration of Directors, Key Managerial
Personnel and Senior Management of the Company. The detail of the remuneration policy of
the Company is given in the Corporate Governance Report, which forms part of this Annual
Report. The said policy also lays down the criterion for payment of remuneration to
NonExecutive Directors and the web-link of the same is https:// kewalkiran.com/uploads/2018/12/criteria-for-payment-to-
non-executive-directors.pdf
ANNUAL BOARD EVALUATION
Your Board has adopted a formal mechanism for evaluating its performance and as well as
that of its committee and individual directors, including the chairman of the Board.
The criteria for performance evaluation of the Board include aspects like Board
composition and structure effectiveness of Board processes, information and functioning,
experience, competencies, etc. The exercise was carried out through a structured
evaluation process covering various aspects of the Boards functioning such as composition
of the Board and Committees, experience and competencies, performance of specific duties
and obligations, governance issues etc. Separate exercise was carried out to evaluate the
performance of Individual Directors including the Board Chairman who was evaluated on
parameters such as attendance, contribution at the meetings and otherwise, independent
judgment, safeguarding of minority shareholders interest, etc.
The evaluation of the Independent Directors was carried out by the entire Board and
that of the Chairman and the NonIndependent Directors were carried out by the Independent
Directors. The Directors were satisfied with the evaluation results, which reflected the
overall engagement of the Board and its Committees with the Company.
REMUNERATION OF DIRECTORS AND EMPLOYEES
The information required under section 197(12) of the Companies Act, 2013 read with
rule 5(2) and 5(3) of Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 and forming part of the Directors' report for the year ended March 31, 2023
and the prescribed particulars of employees required under Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 are attached as
'Annexure-IV' and forms part of this report.
Save and except the relation between the Executive Directors inter se (the executive
directors are brothers) none of the employees listed in the said annexure is a relative of
any Director of the company. None of the employees (save and except the Executive
Directors) hold (by himself or along with his/her spouse and dependent children) more than
two percent of the equity shares of the company.
CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT
The Corporate Social Responsibility Committee has formulated and recommended to the
Board a Corporate Social Responsibility Policy of the Company indicating the activities to
be undertaken by the Company which has been approved by the Board. The CSR Policy may be
accessed on the Company's website at https://kewalkiran.com/
uploads/2018/12/CSR_policy.pdf . The Company considers CSR spend in the areas of
Healthcare, Education, Animal welfare and such other areas as the Board may deem fit from
time to time so as to qualify as a Corporate Social Responsibility spend pursuant to the
Corporate Social Responsibility Policy of the Company and in accordance with the
provisions of the Companies Act 2013 and the rules made there under.
The report on Corporate Social Responsibility initiatives as required under Companies
(Corporate Social Responsibility Policy) Rules, 2014 is given as Annexure-V.
EXTRACT OF ANNUAL RETURN
Pursuant to amendment to Section 92 of the Act read with the Rule 12 of Companies
(Management and Administration) Rules, 2014, your Company is not required to provide
extract of Annual Return (Form MGT-9) as part of the Board's Report. Annual Return as at
March 31, 2023 is available on website of the Company www.kewalkiran.com
ENVIRONMENT AND SAFETY
Your Company is conscious of the importance of environmentally clean and safe
operations. Your Company's policy requires conduct of operations in such a manner, so as
to ensure safety of all concerned, compliances with environmental regulations and
preservation of natural resources. The Company provides a safe and healthy workplace
focussing on creating right safety culture across the organisation and aims to achieve
ultimate goal of zero injuries to all its employees and all stakeholders associated with
the Company's operations.
MAINTENANCE OF COST RECORD
Your Company is not required to maintain cost record as specified by the Central
Government under section 148(1) of the Companies Act, 2013.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A detailed review of Industry Structure and Developments, Internal Control System, Risk
and Concern, operations, performance and future outlook of the company is given separately
under the head Management Discussion and
Analysis Report as stipulated under Regulation 34(2)(e) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and forms a part of this Annual Report.
CORPORATE GOVERNANCE
Your Company is committed to maintain the highest standards of Corporate Governance and
adhere to the Corporate Governance requirements set out by SEBI. Your Company has also
implemented several best Corporate Governance practices as prevalent globally.
The report on Corporate Governance as stipulated under SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 forms a part of the Annual Report.
The requisite certificate from the Auditors, M/s. Jain & Trivedi, Chartered
Accountants and M/s N.A Shah Associates LLP, Chartered Accountants, confirming the
compliance of conditions of Corporate Governance as stipulated under SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 forms a part of this report.
DISCLOSURES PERTAINING TO THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) ACT, 2013
The company has in place a Policy for prevention of Sexual Harassment at the Workplace
in line with the requirements of the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC)
has been set up to redress complaints received regarding sexual harassment. All employees
(permanent, contractual, temporary, trainees) are covered under this policy.
The following is a summary of sexual harassment complaints received and disposed of
during the year:
(a) Number of complaints pending at the beginning of the year; 0
(b) Number of complaints received during the year: 0
(c) Number of complaints disposed of during the year: 0
(d) Number of cases pending at the end of the year: Not Applicable
ACKNOWLEDGEMENTS
Your Board would like to place on record its sincere appreciation for the wholehearted
support and contribution made by its customers, its shareholders and all its employees
across the country, as well as the various Government Departments, Banks, Distributors,
Suppliers and other business associates towards the conduct of efficient and effective
operations of your Company.
|
For and on behalf of the Board |
|
Kewalchand P. Jain |
Place: Mumbai |
Chairman & Managing Director |
Dated: August 2, 2023 |
DIN:00029730 |
|