Moneycontrol
Get App
SENSEX NIFTY
you are here:

Kavit Industries Ltd.

BSE Live

Jan 17, 16:00
88.50 1.45 (1.67%)
Volume
AVERAGE VOLUME
5-Day
53,408
10-Day
49,688
30-Day
61,099
56,401
  • Prev. Close

    87.05

  • Open Price

    89.90

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

(%)
Volume
No Data Available
  • Prev. Close

  • Open Price

  • Bid Price (Qty.)

    ()

  • Offer Price (Qty.)

    ()

Kavit Industries is not listed on NSE

Annual Report

For Year :
2018 2016 2015 2014 2012 2011

Director’s Report

BOARDS’ REPORT

To,

The Members of Kavit Industries Limited

The Directors are pleased to present the Annual Report and the Company''s audited financial statement for the financial year ended March 31, 2018.

1. FINANCIAL HIGHLIGHTS AND STATE OF COMPANY''S AFFAIRS:

The financial results of the Company for the accounting year ended on 31stMarch 2018, are as follows:

(Rs.In Lacs)

Particulars

Year Ended March 31, 2018

Year Ended March 31, 2017

Standalone

Consolidated

Standalone

Consolidated

Turnover

6775.63

7409.78

17753.25

17753.25

Other Income

127.30

127.30

16.13

16.14

Total Revenue

6902.93

7537.08

17769.38

17769.39

Expenditure

6778.99

7405.32

17636.03

17636.04

Profit (Loss) Before Taxes

64.43

72.27

133.35

133.35

Taxes expenses

Current Tax

19.87

23.98

41.44

41.44

Deferred Tax

2.31

2.31

Profit after Tax available for appropriation

44.56

48.29

89.60

89.60

Dividend

Balance carried forward to Balance Sheet

44.56

48.29

89.60

89.60

2. Business overview:

Due to monitory policy changes like GST & Demonetization, overall industrial performance witness downfall. Your Company also faced trouble in achieving targeted goal. Anyhow, your Company cloud succeeds to maintain their market share. The net profit goes down almost 50% as compared to previous year figure.

No material changes and commitments occurred between end of the financial year and date of report which affects financial position.

3. DIVIDEND:

With a view to conserve resources for future projects, the Board has not recommended any dividend.

4. CAPITAL STRUCTURE:

During the year under review, there was no change in the Company’s issued, subscribed and paid-up equity share capital.

5. AUDITOR’S COMMENTS & REPLY THEREON

a. STATUTORY AUDITORS:

(i) Filing of e-form SH-7 w.r.t. Increase of Authorized Capital

It is inadvertently and unintentional lapses form the part of the Company and the lapse is not forming part of this financial period. During the year there is no such instance of Increase of Authorized Capital.

(ii) Auditors concern on arms-length transactions with Kavit Edible Oil Ltd.

Kavit Industries Limited sales and purchase with its 80% subsidiary company on the basis of Arm- length price which are prevailing in Edible oil Market. Kavit Industries Ltd did business with Kavit edible oil Limited same way as doing business with other Parties in Market on general prevailing market rate and earn Profit.

(iii) Upward revaluation of Immovable assets:

As we have followed, Indian accounting standard so we have taken valuation report from Consultant of Factory Land and building and did upward revaluation of Land by Rs 70462931 based on valuation report and effect for the same given based on Indian Accounting Standard.

(iv) Loans to subsidiary Companies:

Since all subsidiaries are newly incorporated and it has no substantial assets to avail financial assistance from Banks, thus, in order to make subsidiaries stronger to perform its business operations efficiently the Company has advanced loans to them which is also in sort-term in nature and repayable on demand.

(v) Internal Control System:

Company has its own internal control system which is followed at different outlet, but as per our statutory Auditor‘s Report it may be different. However, over all company has internal control system for procuring material, storage of the same in Tank and sale of the goods to various parties. We have also obtained confirmation from all debtors, Loans, and Advances form party. There were some party pertaining to loans and advance outstanding for more than over 5 years In addition, chances of recovering from them were deem so Amount was written off. Same case is with Debtors as old balance outstanding for more than 3 years due to dispute in rate diff as well as Small amount outstanding due to Short payment received or Material defect.

However company has received suggestion from Auditor and will implement the same to smoothen the internal control and procedures.

b. SECRETARIAL AUDITOR:

Pursuant to Section 204 of the Act and rules framed therein the Board of Directors has appointed M/s Devesh Vimal & Co., the Practicing Company Secretary as a Secretarial Auditor to conduct a Secretarial Audit for the financial year under consideration.

The Report of the Secretarial Auditor in Form MR-3 is annexed to this report as “Annexure-I”

Secretarial Auditors has also emphasized on the matter concerning to filing of SH-7 and the same is already dealt in this report hereinabove. Thus, not verbatim again.

c. COST AUDITOR:

Your Company does not fall under the mandatory maintenance of Cost Records and/or get records audited from Practicing Cost Accountants as per Section 148 read with Rule 4(2) of the Companies (Cost Records and Audit) Rules, 2014. Hence, your Company has not appointed any Practicing Cost Auditor.

6. TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND.

The provisions of Section 125(2) of the Companies Act, 2013 , there was no amount transferred to Investor Education & Protection Fund.

7. SUBSIDIARY COMPANY:

During the year under review, the Company has subsidiary Companies, namely, Kavit Infoline Private Limited, Kavit Swachh Organic Food Private Limited, Kavit Foods Pvt. Ltd, Kavit Edible Oil Limited and Kavit infra Project Private Limited. Moreover, M/s. Kavit Green Energy Pvt. Ltd. ceased as a subsidiary of the Company during the financial year.

In compliance with the provision of the Companies Act, 2013 the details of the subsidiaries and associated companies are mentioned the prescribed form AOC 1 marked as “Annexure II”.

8. MANAGEMENTS DISCUSSION AND ANALYSIS REPORT

Pursuant to Regulation 34 read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, detailed review of operations, performance and outlook of the Company is covered under a separate Annexure to this report as Management Discussion & Analysis. (Annexure - III).

9. DIRECTORS’ REPSPONSIBILITY STATEMENT:

Pursuant to Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that:

(i) in the preparation of the annual accounts of the Company for the year ended on March 31, 2018, the applicable Indian accounting standards had been followed along with proper explanations relating to material departures for thesame;

(ii) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review;

(iii) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) the Directors had prepared the Annual Accounts on a going concern basis;

(v) 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; and

(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

10. CORPORATE GOVERNANCE :

Kavit Industries Limited is committed to maintaining the best standards of Corporate Governance and has always tried to build the maximum trust with shareholders, employees, customers, suppliers and other stakeholders.

A separate section on Corporate Governance report and the certificate from the Practicing Chartered Accountant confirming compliance of the Corporate Governance norms as stipulated in the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,2015 (“Listing Regulations”)form part of this Annual Report as an Annexure IV.

11. CONTRACTS AND ARRANGMENTS WITH RELATED PARTIES :

As required by the provisions of the Companies Act,2013; the details regarding the Related Party Transactions are given in prescribed Form AOC-2 is attached herewith as Annexure V.

12. MEETING OF THE BOARD

The Details of number of Meeting of Board of Directors and attaindance of individual Directors are provided under the Corporate Governance Report.

13. CONSOLIDATED FINANCIAL STATEMENT:

In accordance with the Companies Act, 2013, Regulation 34(2)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 counting Standard (AS) - 21 on the consolidated financial statement read with AS - 23 on accounting for investment in associates and AS - 27 on financial reporting of interests in joint ventures, the audited consolidated financial statement is provided in the Annual Report.

14. DIRECTOR & KEY MANEGERIAL PERSONNEL:

During the year under review, changes occurred in Directorship and Key Managerial Personnel are described at length in Corporate Governance report.

In accordance with the provisions of the Act and the Articles of Association of the Company, Ms. Kalyani Chandrakant Rajeshirke (DIN-07330113), Director of the Company, retire by rotation at the ensuing Annual General Meeting and being eligible have offered herself for reappointment. Your Directors recommend her re-appointment for your approval.

Company’s policy on Directors’ appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a Director and other matters provided under Section 178(3) of the Companies Act, 2013 is hosted on the Company’s website (www.kavitindustries.in).

Company has also received declarations from all the Independent Directors of the Company confirming that they meet the criteria of independence as prescribed both under Section 149(6) of the Companies Act, 2013 and regulation 17 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

15. MATERIAL CHANGES AND COMMITMENTS BETWEEN THE DATE OF THE BALANCESHEET AND THE DATE OF REPORT:

There are no material changes between the date of balance sheet and the date of this report that would affect the financial position of the Company.

16. CONSERVATION OF ENERGY, TECHNOLOGICAL ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

(A) Conservation of energy:

Your company requires energy for operation and the company is making all efforts to conserve energy by monitoring energy cost and periodical review of the consumption of energy. It also takes appropriate steps to reduce the consumption through efficiency in usage and timely maintenance/ installation/ up gradation of energy saving devices.

(B) Technology absorption:

The company uses latest technology and equipments into the business and has been quite vigilant about the latest technological changes.

(C) Foreign Exchange Earnings and Outgo:

_(Rs. In Lacs)_

PARTICULARS

2017-18

2016-17

Foreign Exchange earned in terms of actual

0

0

17. LOANS, GAURANTEES AND INVESTMENTS BY COMPANY (Section 186)

Details of the same is provided in the financial statement.

18. EXTRACT OF ANNUAL RETURN: [Section 92 (3)]

As required by the provisions of Section 92(3) of the Companies Act, 2013; the extracts of Annual Return in prescribed Form MGT-9is attached herewith as Annexure VI.

19. DEPOSITS

The Company has neither accepted nor renewed any deposits during the year under review to which the provisions of the Companies (Acceptance of Deposits) Rules 2014 applies.

20. AUDIT COMMITTEE (Section 177 (8)}

As on the date, audit committee comprises 3 members as on the date of this report. All the members of Audit Committee are financially literate. The reference terms for Audit Committee are mentioned in the Corporate Governance Report which is a part of this report.

21. DISCLOSURE ON ESTABLISHMENT OF VIGIL MECHANISM :

Establishment of Vigil Mechanism is not applicable to the Company, thus, it has not constituted.

22. CORPORATE SOCIAL RESPONSIBILITY (CSR):

Since the Company''s net worth does not exceed Rs. 500 crore or Company''s turnover does not exceed Rs. 1,000 crore or the Company''s net profit does not exceed Rs. 5 crore for any financial year, the provisions of section 135 of the Companies Act, 2013 relating to Corporate Social Responsibility activities are not applicable to the Company.

23. OTHER MATTERS:

Following are the other matters to be covered pursuant to Section 134(3) (q) of the Companies Act, 2013 read with Rules made there under:

1. Change in nature of business

- There is no change in the nature of the business

2. Details of significant and material orders passed by the Regulators or courts or tribunals Affecting the going concern status and company’s operations in future.

- There is no significant and material orders passed by the Regulators, courts, or tribunals

3. Adequacy of Internal Financial Controls with reference to Financial Statements

- There is an adequate system in place for internal financial controls which commensurate with the working operations of the Company.

24. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,PROHIBITION AND REDRESSAL), ACT,2013:

inflows during the year (On F.O.B Bases)

Foreign Exchange outgo during the year in terms of actual outflows

0

0

The Company has in place an Anti-Sexual Harassment Policy 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 the complaints received regarding sexual harassment. All employees (Permanent, Contractual, Temporary, trainees) are covered under this Policy.

There were no complaint filed till date under the said policy.

25. ACKNOWLEDGEMENTS:

The directors appreciate the professionalism, commitment and dedication displayed by employees at all levels. The directors would like to express their grateful appreciation for the assistance and co-operation that our company has been receiving from our Bankers, Customers, Business Associates, Central and State Government authorities, and Shareholders.

For and on Behalf of the Board,

Date: 31/08/2018 For Kavit Industries Limited

Place: Vadodara

Sd/-

(Jayesh Raichandbhai Thakakr)

Chairman& Managing Director

Director’s Report