Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Kitex Garments Directors Report, Kitex Garments Reports by Directors
YOU ARE HERE > MONEYCONTROL > MARKETS > TEXTILES - READYMADE APPARELS > DIRECTORS REPORT - Kitex Garments

Kitex Garments

BSE: 521248|NSE: KITEX|ISIN: INE602G01020|SECTOR: Textiles - Readymade Apparels
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Oct 18, 16:00
86.60
-0.35 (-0.4%)
VOLUME 1,318
LIVE
NSE
Oct 18, 15:59
86.90
0.25 (0.29%)
VOLUME 48,916
Download Annual Report PDF Format 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '18    Mar 17

Dear Members,

The Directors are pleased to present the Twenty Sixth Annual Report of the Company together with the Audited financial statements for the financial year ended March 31, 2018.

1. CORPORATE OVERVIEW

Your company is into 100% exports of cotton garments especially Infant swear. The Company exports its products to United States and European Markets.

2. FINANCIAL HIGHLIGHTS

Highlights of financial Results for the year are as under:

(Rs. in Lakhs)

Standalone

Consolidated |

Particulars

For the year ended March 31, 2018

For the year ended March 31, 2017

For the year ended March 31, 2018

For the year ended March 31, 2017

Sales and other Income

Revenue from operations

55,725.42

54,590.13

55,725.42

54,590.13

Other Income

267.07

346.41

267.07

346.41

Total Revenue

55,992.49

54,936.54

55,992.49

54,936.54

Profit Before Interest and Depreciation

13,670.24

17,330.33

13,670.24

17,330.33

Less: Finance Charges

581.18

926.68

581.18

926.68

Depreciation

2,340.14

2182.92

2,340.14

2182.92

Net Profit Before Tax

10,748.92

14,220.73

10,748.92

14,220.73

Less: Provision for Tax

3746.69

4,998.94

3746.69

4,998.94

Net Profit After Tax

7002.23

9,221.79

7002.23

9,221.79

Share of Profit/ (Loss) Of Associates

-

-

(647.29)

(875.95)

Net Profit after share of profit of Associates

-

-

6354.94

8,345.84

Balance of Profit brought forward

24,202.69

31,806.16

24,202.69

31,806.16

Balance available for appropriation

31,281.71

41,060.24

30,557.63

40,152.00

Dividend on Equity Shares (Interim and Final Proposed)

855.00

712.50

855.00

712.50

Tax on proposed Dividend

174.06

145.05

174.06

145.05

Transfer to General Reserve

1,000.00

16,000.00

1000.00

16,000.00

Surplus carried to Balance Sheet

29,252.65

24,202.69

28,528.57

23,294.45

3. FINANCIAL PERFORMANCE

Your Company reported a marginal top-line growth of 2.04% over the previous Year. At standalone level, the gross revenue from operations stood at Rs.55,725.42 lakhs compared with Rs.54,590.13 lakhs in the previous year. The Operating Profit before Tax stood at Rs.10,748.92 lakhs as against Rs.14,220.73 lakhs in the previous Year. The net profit for the year stood at Rs.7002.23 lakhs against Rs.9,221.79 lakhs reported in the previous year.

The Company continues to retain its market leadership in Infant swear with pan US distribution network of our customers. The Consolidated Gross Revenue from operations for FY 201718 was Rs. 55,725.42 lakhs registering a growth of 2.06%. The consolidated profits after tax stood at Rs. 7002.23 lakhs.

During the year under review, your company has received order confirmations from major Infant Garment buyers viz., Gerber Children swear LLC, Carters, Buy-Buy Baby, Ross Stores, Amazon, Target, Walmart who can contribute major part of your Company''s turnover in coming years.

There have been no material changes or commitments affecting the financial position of the Company which have occurred between the end of the financial year and the date of this report, except the following:

During the year, TOYS R US, Inc., one of the customers of the Company filed a petition in the Bankruptcy Court in The United States of America to wind down its US operation and the process is pending. A motion is pending in the said court regarding claims of its creditors which would establish streamlined procedures and forms for asserting those types of claims, which is set to be heard on 24th May 2018. The management is waiting on the court to enter the order on that motion so that the claim of the Company is consistent with the procedures set by the Court. The Company has to recover trade receivables from them aggregating to Rs.1,735.15 Lakhs (US$ 26.62 Lakhs) and the Company also holds merchandise/other materials in stock for them in inventory . The Company has engaged the services of Attorneys and Counselors at Law ,M/s Nelson Mullins Riley & Scarborough LLP, USA to file the claim for recovery of all its dues and no shortfall is anticipated thereon by the management at this stage. However as a prudential measure, an estimated provision of Rs. 347.03 Lakhs has been made in the said accounts towards loss, if any on recovery of receivables.

4. SUBSIDIARY & ASSOCIATE COMPANY

- KITEX USA LLC

The Company being an Associate Company was incorporated in USA in the year 2015 with joint investment between the Company and Kitex Children swear Limited to support and facilitate design for US Market customers. The Associate Company markets the licence brand Lamaze and Own Brand Little Stars Infantswear in US and Canada.

As on March 31, 2018, the Company has an Associate Company, accounts of which shall be made available to the shareholders of the Company seeking such information at any point of time. The Consolidated Financial Statements of the Company along with its Associate prepared for the year 2017-18 in accordance with relevant Indian Accounting Standard issued by Institute of Chartered Accountants of India forms part of this Annual Report. A Report on the salient features of the financial statements of Subsidiaries/ Associate Companies/ Joint Ventures prepared in form AOC-1 is provided as Annexure - A. Your company has also consigned products worth Rs. 25,139.15 Lakhs to its Associate during the year. Your Company has made investment in Kitex USA LLC of $ 23 lakhs in the previous year.

Kitex USA LLC is equipped with a world class design studio in New Jersey to meet unique requirements of value additions to US clients.

The Company does not have any subsidiary as on reporting date. During the year under review, companies does not have become or ceased to be Company''s Subsidiaries, Joint Ventures or Associate Companies.

5. DIVIDEND, DIVIDEND DISTRIBUTION POLICY AND TRANSFER TO RESERVE

Your Directors had declared an interim dividend of 75% (Re. 0.75 per equity share of face value of Re. 1/- each) aggregating to Rs. 4.99 Crores at the Board meeting held on 4th November, 2017. Further your directors have recommended a final dividend of 75% (Re. 0.75 per equity shares of face value of Re. 1/-) thus making the total dividend pay-out at 150 % (Rs. 1.50 per share). The proposed final dividend is subject to the approval of the members at the ensuing Annual General Meeting. The Final dividend if declared shall be distributed to the members within 30 days from the date of AGM. The Company has paid dividend distribution tax of Rs. 174.06 lacs for FY 2017-18.

During the year under review, your company transferred a sum of Rs. 1000 lakhs to the General Reserve on account of future expansions.

As per Regulation 43A of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, top five hundred listed entities based on market capitalization are required to formulate a Dividend Distribution Policy. However since April, 2017 your company has been reclassified its class of scrip by the stock exchanges as small cap and hence this regulation does not apply to the Company. However the Board had approved and adopted

Dividend Distribution policy which is available on the Company''s Website: viz., www.kitexgarments.com

6. SHARE CAPITAL

During the financial year 2017-18, your company had issued bonus shares in the ratio of 2 (two) new shares for every 5 (five) shares. Consequently the paid-up share capital increased from Rs. 4.75 Crores to Rs. 6.65 Crores. As on 31st March, 2018, the paid-up equity share capital of your company stood at Rs. 6.65 Crores consisting of 6,65,00,000 equity shares of Re. 1/- each fully paid-up.

7. TRANSFER OF UNCLAIMED DIVIDENDS AND UNCLAIMED SHARES TO IEPF

The Company has transferred unclaimed dividend of Rs. 277,817 for the financial year 2009-10 to Investors Education Protection Fund (IEPF) on 03.02.2018. The Company has taken various steps by sending reminders requesting them to encash their dividend so as to reduce the limit of unclaimed dividend before transferring the dues to IEPF. The total amount lying in the Unpaid Dividend Account of the company in respect of the last seven years and due date for transfer to the IEPF, the details of which are set out in the Corporate Governance Report which forms a part of this Report.

In terms of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 as amended from time to time, the Company transferred the corresponding shares to IEPF, where the dividends which have been unclaimed by the concerned shareholders for the last seven consecutive years viz., since FY 2008-09 and 2009-10. Further dividend which has become unclaimed for the last 7 years since 2010

11 must be claimed by the concerned shareholders on or before April 25, 2018 for which Company had sent the reminder letter to them. If the shareholders fail to claim the dividend, the company will be transferring the unclaimed dividend and the corresponding shares to IEPF within a period of 30 days from the due date. The details are provided in the Shareholder information section of this Annual Report and are also available on our website www.kitexgarments.com.

8. CAPITAL EXPENDITURE

As on 31st March, 2018, the Fixed Assets stood at Rs. 21,465.68 lakhs and net fixed assets of Rs. 17164.29 lakhs. Additions during the year amount to Rs. 2426.01 lakhs.

Phase I expansion of Rs. 241 Crores of capital investment for automation, new Plant & Machinery and other amenities which was approved by the Board of Directors in the last financial year was brought forward to this financial year and is under process for implementation.

The Board of Director has been taking utmost effort to implement the expansion.

9. FUTURE PROSPECTS

Your Board of directors decided to invest Rs. 400 Crores (Rs. 200 Crores each) in its proposed two wholly owned Subsidiary Companies to increase the manufacturing capacities of your Company to meet rising future demand. The said investment shall be from internal accruals and borrowings. Your Board also appointed M/s. KPMG for total implementation of the project.

10. FINANCE AND ACCOUNTS

During the year under review the Rating Agency ICRA maintained the [ICRA]AA- rating with stable outlook for the company''s long term borrowings and maintained the [ICRA]A1 rating for the Company''s short term borrowings.

As mandated by the Ministry of Corporate Affairs, your company has adopted the Ind AS for the financial year commencing from April 1, 2017. The estimates and judgments relating to the Financial Statements are made on a prudent basis, so as to reflect in a true and fair manner, the form and substance of transactions and reasonably present the Company''s state of affairs, profits and cash flows for the year ended March 31, 2018.

11. QUALITY AND ACCOLADES

Your Company continues to win awards year by year, thus reiterating its credible market position. During the year, the Company was the recipient of the following awards:

- Future Kerala Entrepreneurial Excellence & Best CEO awards 2018 by Future Kerala Financial Daily.

- Malayali of the Year 2018 - Business & Innovation by News 18 - Kerala.

- Indywood Excellence Awards 2017 (CSR) from Project Indywood (Aries group) and Govt. of Telangana)

12. CHANGE IN THE NATURE OF BUSINESS

During the year under review, there was no change in the nature of the business.

13. LISTING

The Equity Shares of the Company continue to remain listed on BSE Limited and National Stock Exchange of India Limited.

14. FIXED DEPOSIT

The Company has not accepted any deposit within the meaning of Chapter V of the Companies Act, 2013 and the Rules framed thereunder.

15. EXTRACT OF ANNUAL RETURN

Details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as Annexure - B.

16. SECRETARIAL STANDARD

The Company complies with all applicable secretarial standards.

17. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT BY THE COMPANY

Your Company has not provided any Loans or guarantees which attract the provisions of Section 186 of the Companies Act, 2013. However Investments covered under the provision of Section 186 of the Companies Act 2013 are given in the notes to financial Statements.

18. DIRECTORS AND KEY MANAGERIAL PERSONNEL There is no change in the Board of Directors & Key Managerial Personnel of your company during the financial year 2017-18. In accordance with the provisions of the Act and Article 117 & 118 of Articles of Association of the Company, Mrs. Sindhu Chandrasekhar (DIN 06434415) Woman Director retires by rotation and being eligible offer herself for reappointment. Item seeking her re-appointment along with her detailed profile has been included in the notice convening the AGM. Your Directors recommend the Resolution for your Approval.

All Independent Directors have given declaration that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and regulations 16(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

During the year under review, 5 (Five) meetings of the Board of Directors, Board Committees were held, details of which are set out in the Corporate Governance Report which forms a part of this Report.

19. BOARD EVALUATION & FAMILIARISATION PROGRAMME

With the objective of evaluating the performance of Directors, Nomination and Remuneration Committee has formulated a structured questionnaire after taking into consideration the various aspects viz., composition of the Board and its committees, Board''s function, its culture, quality and timely flow of information, frequency of meetings, execution and performance of specific duties, obligations and governance.

Board has carried out an annual performance evaluation of its own performance, the performance of various committees of the Board, Individual Directors and the Chairman based on adopted questionnaire. A note on the familiarizing programme adopted by the Company for the orientation and training of the Directors and the manner in which the Board evaluation process undertaken in compliance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is provided

in the Corporate Governance Report which forms part of this Report.

Further, the Independent Directors of the Company met on February 9, 2018 to review the performance of the Non-executive directors, Chairman of the Company and the assess the quality, quantity and timeliness of flow of information between the Company management and the Board to effectively perform their duties. The details of familiarization program conducted for Independent Directors of your Company are available on your Company''s website www.kitexgarments.com.

20. POLICY ON DIRECTORS'' APPOINTMENT AND REMUNERATION AND OTHER DETAILS

The Company''s policy on directors'' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided in Section 178(3) of the Act is available on our website www.kitexgarments. com. There has been no change in the policy since last fiscal. We affirm that remuneration paid to the directors is as per the terms laid out in the Nomination and Remuneration Policy of the Company.

21. DIRECTORS'' RESPONSIBILITY STATEMENT Pursuant to the requirement under Sec 134 (5) of the Act, the Board of Directors of the Company hereby state and confirm that,

(i) in the preparation of the Annual accounts for the year ended March 31, 2018, the applicable accounting standard have been followed along with proper explanation relating to the material departures, if any,

(ii) 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 as at March 31, 2018 and of the profit of the Company for the year ended on that date,

(iii) that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities,

(iv) the annual accounts have been prepared on a going concern basis,

(v) that the Director 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) that 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.

22. BOARD COMMITTEES

Detailed composition of the mandatory Board committees namely Audit Committee, Nomination and Remuneration Committee, CSR Committee, Stakeholders Relationship Committee, its number of meetings held during the year under review and other related details are set out in the Corporate Governance Report which forms part of this Report.

There have been no situations where the Board has not accepted any recommendation of the Audit Committee.

23. EMPLOYEES'' STOCK OPTION SCHEME

The Company has not granted any Employee Stock Option within the meaning of section 62 (1) (b) of the Companies Act, 2013 read with its Rules framed thereunder and respective SEBI regulations.

24. CORPORATE SOCIAL RESPONSIBILITY

The Company has been adopting this concept even before commencement of Companies Act, 2013. The Company implements CSR directly to society of Kizhakambalam Panchayat in which it operates and identified several projects relating to Social Empowerment and Welfare, Infrastructure Development, Sustainable Livelihood, Health Care and Education during the year under review. These projects are in accordance with Schedule VII of the Act and its CSR policy.

The brief report of the Corporate Social Responsibility (CSR) policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure C of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. For other details regarding the CSR Committee, please refer to the Corporate Governance Report, which is a part of this report. The Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company are available on your Company''s website www kitexgarments com

25. MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report on the operations of the Company, as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, forms an integral part of this Report.

26. CORPORATE GOVERNANCE

A separate section on Corporate Governance practices followed by the Company, together with a certificate from the Practising Company Secretary under Reg 34(3) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 confirming its compliance, forms part of this Report.

27. VIGIL MECHANISM

The Company has a Vigil Mechanism to report genuine concerns or grievances of Directors and employees. The vigil mechanism has been posted on the website of the company viz., www.kitexgarments.com

28. RELATED PARTY TRANSACTIONS

All transactions entered into with the related parties for the year under review were on arm''s length basis and in the ordinary course of business. Hence the provisions of Section 188 of the Companies Act, 2013 and the Rules made thereunder are not attracted. Accordingly, the disclosure of Related Party Transactions as required under Section 134 (3) (h) of the Companies Act, 2013 in Form AOC 2 is enclosed as Annexure D. However certain related party transactions were considered as material in accordance with the Company policy on materiality of related party transactions and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for which company has obtained necessary statutory approval from shareholders by means of Postal Ballot/ at the Annual General Meeting.

The company has developed a framework through Standard Operating Procedures for the purpose of identification and monitoring of such Related Party Transactions. All Related Party Transactions were placed before the Audit Committee as also to the Board for approval. Omnibus approval was obtained on a yearly basis for transactions which are of repetitive nature. Transactions entered into pursuant to omnibus approval are audited by the Risk Assurance Department and a statement showing the details of all Related Party Transactions are placed before the Audit Committee and the Board for review and approval on a quarterly basis. None of the Directors has any pecuniary relationship or transactions vis-a-vis the Company.

The policy on Related Party Transactions as approved by the Board of Directors has been uploaded on the website of the Company viz., www.kitexgarments.com.

29. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has an effective internal control and risk-mitigation system, which are constantly assessed and strengthened with new/ revised standard operating procedures. The Company''s internal control system is commensurate with its size, scale and complexities of its operations. The Internal and operational audit is entrusted with M/s. K. Venkitachalam Aiyer & Co, a firm of Chartered Accountants. The main thrust of Internal Audit is to test and review controls, appraisal of risks and business processes, besides benchmarking controls with best practices in the industry.

The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

The Audit Committee of the Board of Directors, Independent Auditors and the Core Committee Heads has periodically appraised the significant internal audit observations and the corrective actions have been taken. The Audit Committee places a key role in providing assurance to the Board of Directors. In order to maintain its objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee.

30. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchanges earnings and outgo pursuant to Section 134 (3) (m) of the Companies Act, 2013 read with the Rule 8(3) of the Companies (accounts) Rules, 2014 as amended from time to time is annexed as Annexure - E and forms an integral part of this Report.

31. BUSINESS RISK MANAGEMENT

Risk Management is embedded in your Company''s operating framework and we believes that managing risks helps in maximizing returns. The company''s approach in addressing business risks includes periodical review of such risks and thereby mitigating it effectively. The risk management framework is reviewed periodically by the Board and the Audit Committee. Some of the risks that the company is exposed to are:

- FINANCIAL RISKS:

The Company''s policy is to actively manage its foreign exchange risks within the framework laid down by the Company''s forex policy approved by the Board. Given the interest rate fluctuations, your Company has adopted a prudent and conservative risk mitigation strategy to minimize financial and interest cost risks.

- COMMODITY PRICE RISKS

The Company is exposed to the risk of price fluctuations of raw materials as well as finished goods. The company proactively manages these risks through forward booking, inventory management and proactive vendor development practices. Your company''s reputation for quality, product differentiation coupled with the existence of a powerful brand image with a robust design and marketing network in US mitigates the impact of price risk on finished goods.

- REGULATORY RISKS

The Company recognised its risks attached to various statutes, laws and regulations. The company is mitigating

these risks through regular review of legal compliances carried out through our internal as well as external compliance audits by our customers.

- HUMAN RESOURCE RISKS

Retaining the existing talent pool and attracting new talent are the major risks affecting the company. We have initiated various measures including rolling out of strategic talent management systems, training and integration of learning and development activities. Our company has collaborated with various agencies like Integrated Skill Development Scheme (ISDS), Kudumbashree etc., which helps to identify, nurture and groom labour talents within all states of India to prepare them for future business leadership.

- STRATEGIC RISKS

Emerging businesses, capital expenditure for capacity expansion etc are normal strategic risks faced by your company. However your Company has well-defined processes and procedures for obtaining approval for investments in new businesses and capacity expansions.

32. AUDITORS

32.1. INDEPENDENT AUDITOR

As per the provisions of Section 139 of the Companies Act, 2013, Messrs Varma & Varma Chartered Accountants, Kochi (FRN 0045325) Independent Auditors of the company retire at the ensuing Annual General Meeting and are eligible for re-appointment. However, the Auditors have conveyed their unwillingness to be reappointed under provisions of Section 139(9)(b) of the Companies Act, 2013. The Board of Directors has placed on record its appreciation for the services rendered by M/s. Varma and Varma as Independent Auditors of the Company. The Board of Directors of the Company has recommended the appointment of M/s. MSKA & Associates, Chartered Accountants, Chennai (FRN 105047W) as the Independent Auditors of the company pursuant to Section 139 of the Companies Act, 2013. Members'' attention is drawn to a resolution proposing the appointment of M/s. MSKA & Associates, Chartered Accountants as Independent Auditors of the Company which is included at Item No. 4 of the Notice convening the Annual General Meeting. Consent and certificate u/s 139 of the Act have been obtained from the Auditors to the effect that their appointment if made, shall be in accordance with the applicable provisions of the Act and rules issued thereunder. As required under the SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015, M/s. MSKA & Associates, Chartered Accountants have confirmed that they hold a valid certificate issued by the Peer Review Board of ICAI.

Further the report of M/s. Varma & Varma the Independent Auditors along with notes to financial statements is enclosed to this Annual Report. The Auditors'' Report does not contain any qualification, reservation or adverse remarks.

32.2. SECRETARIAL AUDITORS

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has re-appointed Mr. Sivakumar P of M/s. SVJS & Associates, Practicing Company Secretaries, Kochi to conduct the secretarial Audit for the financial year 2017

18. The Audit Report issued by the Secretarial Auditors for the financial year 2017-18 form part of this Report and is set out in Annexure - F. The secretarial Audit report does not contain any qualification, reservation or adverse remarks.

32.3. Internal Auditors

Messrs. K. Venkitachalam Aiyer & Co, Chartered Accountants continued as Internal Auditors of your company for the financial year 2017-18.

33. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There were no significant and material orders passed by the Regulators/ courts that would impact the going concern status of your company and its future operations during the period under review.

34. ENVIRONMENT AND SAFETY

The Company is conscious of the importance to environmental friendly and safe operations. The company''s policy requires conduct of operations in such a manner so as to ensure safety of all concerned, compliance of environmental regulations and preservation of natural resources.

As required by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and redressal) Act, 2013, the Company has formulated and implemented a policy on prevention of sexual harassment at the workplace with a mechanism of lodging complaints. The following is a summary of sexual harassment complaints received and disposed off during the reporting period:

- No. of complaints received: Nil

- No. of complaints disposed off: Nil

The Company has filed Annual Report for the year ended December 31, 2017 under the Act with District officer.

35. HUMAN RESOURCES AND INDUSTRIAL RELATIONS Your Company believes that its manpower is an asset for the company and enjoys strong brand image as a preferred and caring employer. The on-going focus is on attracting, retaining and engaging talent with the objective of creating a robust talent pipeline at all levels. Value-based HR programmes have enabled your Company''s HR team to become strategic partners for the business. Your company laid stress to build a women-friendly workplace by introducing various initiatives for the development of women employees in the organization. Your Company has focused on internal talents and nurture them through the culture of continuous learning and development, thereby building capabilities for creating future leaders. Your company''s initiatives like a hiring freeze at some levels, robust talent review, career development conservations and best-in-class development opportunities, which will help to enhance the employees experience at your Company. The Company''s Human Resources plays a critical role in your Company''s talent management process.

The Disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure - G and forms a part of this report. Information relating to remuneration of Directors under Section 197 read with Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been given Annexure H to the Director''s Report

36. 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:

- Neither the Managing Director nor the Whole-time Directors of the Company receive any remuneration or commission from any of its subsidiaries,

- there were no frauds reported by the auditors under provisions of the Companies Act, 2013,

- Issue of equity shares with differential rights as to dividend, voting or otherwise,

- There were no revisions in the financial statements,

- Issue of share(Including sweat equity shares) to employees of the Company under any scheme as permitted under any provision of Companies Act, 2013.

37. ACKNOWLEDGEMENTS

Your Directors thank various Central and State Government Departments, Organizations and Agencies for the continued help and cooperation extended by them. The Directors also gratefully acknowledge all stakeholders of the Company viz. customers, members, dealers, vendors, banks and other business partners for the excellent support received from them during the year. The Directors place on record their sincere appreciation to all employees of the Company for their unstinted commitment and continued contribution to the Company.

For and on behalf of the Board of

Kitex Garments Limited

July 2, 2018

Kizhakkambalam Sabu M. Jacob

Chairman and Managing Director

(DIN: 00046016)

Source : Dion Global Solutions Limited
Quick Links for kitexgarments
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.