KPL INTERNATIONAL LIMITED
ANNUAL REPORT 2009-2010
Your Directors have pleasure in presenting the 36th Annual Report together
with Audited Accounts of the Company for the year ended on 31st March,
FINANCIAL RESULTS Rs. in million
PROFIT BEFORE INTEREST, DEPRECIATION & TAX 157.89
Less: Interest 10.81
Provision for Taxation 48.90
(Including wealth Tax Deferred Tax liability)
Profit for the year 82.83
Add: Balance as per last account 218.02
Dividend on Equity Shares 15.16
Dividend Distribution Tax 2.52
Transfer to General Reserve 8.29
Balance carried to Balance Sheet 274.88
The ethos of the Company is based on the relationships it has nurtured over
the years and the goodwill it has generated among its business associates.
The Company summarizes this in its motto 'Chemistry of Partnerships'.
The Company has emerged as one of the top chemicals indenting and
distribution companies in India. It is now exploring new areas of growth
and some beginning in this direction is already under way. In terms of
diversifications, the Company intends to foray into the renewable energy
sector, particularly generation of electricity from solar energy. This
would supplement the Company's modest success in the wind energy segment.
The Company acquired a tea estate near Darjeeling called Avongrove about
two years ago. This business has witnessed significant improvement. The
quality of organic tea produced in the estate is excellent and is fetching
prices that are one of the highest in the Kolkata tea auctions. The brand
equity of Avongrove is strong as a result of the emphasis on quality as
well as efficiencies in production. Apart from being certified as an
organic tea estate under US Department of Agriculture (USA), Japanese
Agricultural Standards* (Japan) and National Programme for Organic
Production (India & the EU), this business segment also received the
Certificate of Fairtrade from Flo-CertGmbH, Germany during the yearfor
conformation to labour and trade standards..
The Company continued to maintain stable growth in the financial year 2009-
10 across all segments of its activities. During the year, the Company set
new benchmarks in terms of sales, profits and commissions. The turnover for
the year increased to Rs. 563.22 million as against Rs. 501.88 million in
the previous year. The income from commission was Rs. 151.09 million as
against Rs. 74.88 million in previous year. The profit after tax increased
to Rs. 82.83 million as against Rs. 27.12 million in the previous year.
The Board recommends for the approval of the shareholders Dividend of
Rs.1,000/- per Equity Share.
Shri M.R. Mehta and Shri Anand Vardhan Kanoria, Directors of the Company,
retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment.
The statement required under Section 212 of the Companies Act, 1956 in
respect of its Subsidiary Company is appended to this Report.
CONSOLIDATION OF EQUITY SHARES:
During the year, percent applicable provisions of the Companies Act 1956,
the Company had consolidated its equity share capital by increasing the
nominal value of Equity Shares from Rs. 10/- each to Rs. 1,000/- each.
The observations made by the Auditors in their report have been dealt with
in Schedule 'M' of the Accounts, where the notes are self-explanatory.
Messer Singhi & Co., Chartered Accountants, Auditors of the Company, will
retire at the conclusion of the ensuing Annual General Meeting and are
eligible for re-appointment as Auditors of the Company to hold office from
the conclusion of the ensuing Annual General Meeting until the conclusion
of the next Annual General Meeting, As required under the provisions of
Section 224 of the Companies Act, 1956 the Company has obtained a written
confirmation from the retiring Auditors, to the effect that their re-
appointment, if made, shall be within the limits of Section 224 (1B) of the
Companies Act, 1956.
The Company did not accept any fixed deposit from the public during the
Conservation of energy received high priority in the production of tea in
the Company's Avongrove Tea Estate. Improvement in the machinery used in
the production process resulted in reduced energy consumption.
The Company has no activity relating to technology absorption.
The foreign exchange earnings and outgo are given in the item No. 11 & 12
in the Notes on Accounts of Schedule 'M' of the Accounts.
As required under Section 217(2A) of the Companies Act, 1956 and rules
framed there under, the name and particular of employee receiving
remuneration above prescribed threshold are set out in the annexure
appended to this Report.
STATEMENT ON DIRECTORS' RESPONSIBILITY:
A Statement of Directors' Responsibility as prescribed under Section
217(2AA) of the Companies Act, 1956 is given here-in-below:
i. In the preparation of Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures wherever applicable;
ii. We have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company at the end
of the Financial year and of the profit of the Company for that period;
iii. We have 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. We have prepared the Annual Accounts on a going concern basis.
QUALITY MANAGEMENT SYSTEM:
The Company is effectively maintaining the Quality Systems as per the
requirements of ISO 9001:2008, Certificate of Registration for which was
granted by INTERTEK Quality Registrar.
Your Directors take this opportunity to thank the Company's suppliers,
principals, customers, employees, bankers and investors for their continued
and unstinted support.
Registered Office For and on behalf of the Board
10th Floor, 'Indraprakash'
21, Barakhamba Road, Suman J. Khaitan
New Delhi - 110 001 Chairman
Date : 19th June 2010