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K C P Ltd

BSE Code : 590066 | NSE Symbol : KCP | ISIN:INE805C01028| SECTOR : Cement |

NSE BSE
 
SMC down arrow

73.90

-0.75 (-1.00%) Volume 280564

26-Feb-2021 09:34:53

Prev. Close

74.65

Open Price

74.65

Bid Price (QTY)

73.95(264)

Offer Price (QTY)

74.25(598)

 

Today’s High/Low 74.65 - 73.25

52 wk High/Low 82.40 - 35.00

Key Stats

MARKET CAP (RS CR) 963.69
P/E 8.43
BOOK VALUE (RS) 20.7258076
DIV (%) 15
MARKET LOT 1
EPS (TTM) 8.87
PRICE/BOOK 3.6066145861549
DIV YIELD.(%) 0.2
FACE VALUE (RS) 1
DELIVERABLES (%) 56.35
4

News & Announcements

11-Feb-2021

K C P Ltd - KCP Limited - Loss of Share Certificates

10-Feb-2021

K C P Ltd - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

05-Feb-2021

K C P reports consolidated net profit of Rs 33.14 crore in the December 2020 quarter

05-Feb-2021

K C P reports standalone net profit of Rs 36.62 crore in the December 2020 quarter

12-Jan-2021

KCP announces board meeting date

31-Oct-2020

KCP to declare Quarterly Result

18-Aug-2020

KCP to convene board meeting

14-Aug-2020

KCP to conduct AGM

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Andhra Cements Ltd 532141 ANDHRACEMT
Anjani Portland Cement Ltd 518091 APCL
Banjara Cements Ltd 518067
Bheema Cements Ltd 518017
Chettinad Cement Corporation Ltd 590001 CHETTINAD
Dalmia Bharat Ltd 542216 DALBHARAT
Dalmia Bharat Ltd(Merged) 533309
Deccan Cements Ltd 502137 DECCANCE
Dharani Cements Ltd (Merged) 5400
Hemadri Cements Ltd 502133
India Cements Ltd 530005 INDIACEM
Kakatiya Cement Sugar & Industries Ltd 500234 KAKATCEM
Kalinga Cement Ltd 531165
Keerthi Industries Ltd 518011
Lakshmi Cement & Ceramics Industries Ltd 518073
NCL Industries Ltd 502168 NCLIND
Orient Cement Ltd 535754 ORIENTCEM
P R Cements Ltd 518042
Panyam Cements & Mineral Industries Ltd 500322 PANYAMCEM
Raasi Cement Ltd 500349 RAASICEM
Raghoji Cement Manufacturing Co Ltd 518077
Sagar Cements Ltd 502090 SAGCEM
Shiva Cement Ltd 532323
Shri Keshav Cements & Infra Ltd 530977
Snhehadhara Industries Ltd 522169 SNEHAIND
Sri Chakra Cement Ltd 518053
Sri Simhadri Cements Ltd 518083
Sri Vishnu Cement Ltd 518018 SRIVISHCEM
Sudarshan Multi Projects Ltd(wound-up) 518026
The Ramco Cements Ltd 500260 RAMCOCEM
Travancore Cements Ltd 40057

Share Holding

Category No. of shares Percentage
Total Foreign 404600 0.31
Total Institutions 1423804 1.10
Total Govt Holding 500 0.00
Total Non Promoter Corporate Holding 2850738 2.21
Total Promoters 56445592 43.78
Total Public & others 67795926 52.60
Total 128921160 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About K C P Ltd

A multi-product company with two sugar mills, a downstream distillery, a cement plant and an engineering division, KCP was initially a sick sugar unit (cap. : 600 tpd). It was taken over by the late Velagapudi Ramakrishna in 1941. The merger of Challapalli Sugars - a BIFR company - with it in 1988 and expansions have increased its sugar capacity tenfold to 6300 tpd over the last five decades. The cement factory, set up in 1958, was the first dry process plant in India. The engineering division was set up in 1955 as an in-house venture to manufacture sugar machinery required by the company. Manufacture of machinery required for cement, chemicals, steel castings, etc, were later added to this division. Both the cement and engineering divisions have been accredited with the ISO 9002 and ISO 9001 certification respectively in 1994. KCP hived off its sugar and industrial alcohol business, which was transferred to a new company, KCP Sugar Industries Corporation. The Company also undertook a joint venture with Vantech Industries for the manufacture of specialised insecticides. KCP promoted FCB-KCP, a joint venture with FCB, France, in a 40:40 equity participation. The new company is to manufacture and supply state-of-the-art machinery and technology to clients in the sugar industry both in India and abroad. The cement unit of the company continues to retain the ISO 9001 certification while the engineering unit was accredited to use the symbol 'S' and 'U' of the American Society of Mechanical Engineers (ASME) for the manufacture and assembly of power boilers and pressure vessels, respectively on 15 May'96. KCP has also received the Certificate of Merit for outstanding export performance during 1994-95 among Non-SSI exporters in industrial machinery panel for manufacture of sugar, paper, chemical, cement and pharmaceuticals. The company had set up 5 mini-hydel units aggreagting 8.25 MW capacity in the Guntur branch canal of the Nagarjuna Sagar Dam. Electricity generated in this unit is wheeled to the cement unit for use. During 2001-02 the company entered into an agreement with Andhra Pradesh Transmission Corporation Limited(APTRANSCO) for wheeling the generated energy at Hydel stations to the cement plant with a wheeling charge of 2% fixed for a period of 20 years.

K C P Ltd Chairman Speech

Dear Shareholders,

It is my privilege to address you all, in my maiden communication as Chairperson and Managing Director of this esteemed company,

I profoundly thank you all for reposing confidence in me, to take this company forward, as Chairperson & Managing Director.

Before I commence the proceedings, I along with my team, pay our heartfelt homage to our Late Executive Chairman Dr VL Dutt, who passed away on 18th February this year. His sudden demise left us all in a shock and rendered an irreparable loss to the company and the family. KCP is deeply indebted to Dr Dutt, who took the organisation from a small domestic company to international level by setting up sugar plants in Vietnam and other collaborations with Fuller Inc, USA and Fives Group, France to form Joint Ventures. He was the driving force behind expansion of cement capacity from hardly 0.8 million tons to over 4 million tons.

Dr VL Dutt was known for his Values, Ethics and Socially responsible business decisions, his vision in setting up all kinds of power generation units, through renewable sources like Wind, Solar and Hydel, is admirable, apart from setting thermal and waste heat recovery plants. The entire KCP team places on record its deep gratitude and appreciation of his invaluable services to the company and the society around.

His Contributions to National and International Associations made the KCP one of the well-respected Business house in the country. FICCI, under the leadership of Dr Dutt as President for 1992-93, made important policy suggestions to the Government of India, during the transition of economy, under the then Hon'ble Prime Minister late Shri PV Narasimha Rao, FICCI nominated him as its Patron, recognizing his invaluable contributions.

He was also the Vice-Chair of the Commission on Trade and Invest Policy of International Chamber of Commerce, Paris in 1998 and 2007. Dr Dutt was honorary Consul General of the Republic of Turkey in Chennai, in charge of all the Southern States of India. Recognizing his contribution to the economy of Phu Yen Province of Vietnam, Hon'ble President of S.R. Vietnam, decorated Dr Dutt with Friendship Medal, a prestigious award.

Coming to business, India entered the pandemic amid slowing growth, shrinking fiscal space, and a weak financial sector. The exit from the Covid-19 crisis could well see some uncertainties in growth, fiscal constraint and risks to financial sector with fall out on industries. Any sustainable recovery will require infrastructure spends, creation of a social security net, and easing of traditional sore points such as a weak financial sector, correction of outdated laws etc. India is staring at de-growth of economy and perhaps the worst ever recession.

KCP's all segments were affected by the pandemic, be it Cement production in Andhra Pradesh or the Hotel in Hyderabad or Heavy Engineering Unit in Chennai. Cement Production started in AP, with partial lifting of lockdown conditions.

The complete details of performance have been given in the statements included in the Annual Report, which is with you.

Going forward, it is expected that, booster doses given by the Government, in the form of Economic Packages, could help in revival of the economy and would help the fortunes of the sectors your company is operating in.

Internally strategies are being designed to reduce costs, to partially contain the impact of the pandemic. The Company is attempting to diversify the cement markets into States bordering Andhra Pradesh, the traditional stronghold.

I along with Board of Directors, thank all our stakeholders for standing by us in these troubled times.

Dr.V.L.Indira Dutt

Chairperson & Managing Director

   

K C P Ltd Company History

A multi-product company with two sugar mills, a downstream distillery, a cement plant and an engineering division, KCP was initially a sick sugar unit (cap. : 600 tpd). It was taken over by the late Velagapudi Ramakrishna in 1941. The merger of Challapalli Sugars - a BIFR company - with it in 1988 and expansions have increased its sugar capacity tenfold to 6300 tpd over the last five decades. The cement factory, set up in 1958, was the first dry process plant in India. The engineering division was set up in 1955 as an in-house venture to manufacture sugar machinery required by the company. Manufacture of machinery required for cement, chemicals, steel castings, etc, were later added to this division. Both the cement and engineering divisions have been accredited with the ISO 9002 and ISO 9001 certification respectively in 1994. KCP hived off its sugar and industrial alcohol business, which was transferred to a new company, KCP Sugar Industries Corporation. The Company also undertook a joint venture with Vantech Industries for the manufacture of specialised insecticides. KCP promoted FCB-KCP, a joint venture with FCB, France, in a 40:40 equity participation. The new company is to manufacture and supply state-of-the-art machinery and technology to clients in the sugar industry both in India and abroad. The cement unit of the company continues to retain the ISO 9001 certification while the engineering unit was accredited to use the symbol 'S' and 'U' of the American Society of Mechanical Engineers (ASME) for the manufacture and assembly of power boilers and pressure vessels, respectively on 15 May'96. KCP has also received the Certificate of Merit for outstanding export performance during 1994-95 among Non-SSI exporters in industrial machinery panel for manufacture of sugar, paper, chemical, cement and pharmaceuticals. The company had set up 5 mini-hydel units aggreagting 8.25 MW capacity in the Guntur branch canal of the Nagarjuna Sagar Dam. Electricity generated in this unit is wheeled to the cement unit for use. During 2001-02 the company entered into an agreement with Andhra Pradesh Transmission Corporation Limited(APTRANSCO) for wheeling the generated energy at Hydel stations to the cement plant with a wheeling charge of 2% fixed for a period of 20 years.

K C P Ltd Directors Reports

Dear Shareholders,

Your Directors take pleasure in presenting their 79th Annual Report of the company together with the Audited Financial Statements (Standalone and Consolidated) for the financial year ended 31st March, 2020.

1. Financial Results:

Financial Performance and Review:

(Rs in Lakhs)

For the year ended

For the year ended

Particulars 31-03-2020 31-03-2019 31-03-2020 31-03-2019

Stand Alone

Consolidated (GROUP)

Revenue from Operations 93,797 114,191 142,359 166,130
Profit for the year (PBDIT) 10,242 14,092 19,487 23,827
Less: a) Interest and Finance charges 5,641 3,419 5,940 3,909
b) Depreciation 7,141 5,193 9,609 7,562
Profit before Tax (2,540 ) 5,480 3,938 12,356
Tax Expense (1,863 ) 1,529 (1,863 ) 1,528
Profit for the Year (677 ) 3,951 5,801 10,828
Add : Share of Profit from Joint Veture 29 157
Less : Non-Controlling Share of Profit 3,117 2,762
Profit / (Loss) after Non controlling interest (677 ) 3,951 2,713 8,223
Other Comprehensive Income (OCI) (353 ) (207 ) 2,322 928
Add : Share of OCI from Joint Veture - (29 )
Less : Non-Controlling Share of OCI 955 382
OCI after Non controlling share (353 ) (207) 1,367 517
Total Comprehensive Income (TCI) (1,030) 3,745 8,152 11,884
Less : Non-Controlling Share of TCI 4,072 3,145
Total Comprehensive income after non-controlling interest (1,030) 3,745 4,080 8,739

2. COVID-19

In month of March in FY 2020, the COVID-19 pandemic developed rapidly into a global crisis, forcing governments to enforce lock-downs of all economic activity. For the Company, the focus immediately shifted to ensuring the health and well-being of all employees, the company has closed down all its offices and manufacturing facilities and Hotel by taking necessary precautions and with minimum staff, the employees are allowed to work from home wherever possible to work remotely and securely.

The company would implement a phased and safe return to work plan as and when lockdown restrictions are eased.

3. Indian Accounting Standards (IND AS)

The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on accrual basis except for certain financial instruments, which are measured at fair values, the provisions of the Companies Act, 2013 (to the extent notified) and guidelines issued by SEBI.

4. Dividend

The Board has recommended for the approval of the shareholders at the ensuing Annual general Meeting a dividend of Rs.0.15/- paise per share (15% on paid- up share capital).

5. Transfer to Reserves

The company has not transferred any amount to the reserves for the year ended March 31,2020.

6. Share Capital

The paid up Equity Share Capital as on March 31, 2020 is Rs. 12,89,21,160, During the year, the Company has not issued any shares or convertible securities.

The Company does not have any Scheme for issue of shares including sweat equity to the employees or Directors of the Company.

No disclosure is required under Section 67(3)(c) of the Companies Act, 2013 (Act) as the provisions of the said Section are not applicable.

7. Credit Rating

Credit Rating Agency CRISIL has reaffirmed the ratings of the Company (The KCP Limited) for bank loan facilities and other debt facilities as detailed below.

Long-term rating CRISIL A-/Stable (Outlook revised from Positive)
Short-term rating CRISIL A2+ (reaffirmed)
Rs 125.00 crore fixed deposit programme FA/Stable (Outlook revised from Positive)
Rs 70.00 crore non-convertible debentures CRISIL A-/Stable (Outlook revised from Positive)

8. Fixed Deposits:

The total amount of Fixed Deposits outstanding as on 31st March, 2020 was Rs..8577.05 Lakhs as compared to the figure of Rs.8696.49 Lakhs as on 31st March, 2019.

As on 31st March, 2020, Fixed Deposits matured and remained unclaimed were Rs.221.74 Lakhs from 282 depositors. As on the date of this report, Fixed Deposits relating 17 Depositors amounting to Rs.13.48 Lakhs have been renewed and Fixed Deposits of Rs.14.53 Lakhs of 19 depositors repaid.

Depositors have been intimated regarding the maturity of deposits with a request to either renew or claim their deposits. As per the provisions of Section 125 of the Companies Act, 2013, deposits remaining unclaimed for a period of seven years from the date they became due for payment have to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government.

Accordingly, during the year, an amount of Rs.0.61 Lakhs towards unclaimed deposits and Rs.0.50 Lakhs towards Stale cheque unclaimed on deposits has been transferred to the IEPF.

9. Particulars of Loans, Guarantees and Investments

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act are given in the Notes to Financial Statements.

10. Management Discussion & Analysis report:

In terms of the provisions of Regulation 34(2) of the Listing Regulations, the Management Discussion and Analysis forms part of this Report and all matters pertaining to Industry structure and developments, opportunities and threats, segment/product wise performance, outlook, risks and concerns, internal control and systems, etc are discussed in this report.

11. Line 2 Expansion of Brown field cement project, Muktyala:

The Company has commenced operations of the Brown Field Cement Project at Muktyala (Details provided in Managemen Discussion & Analysis. report).

12. Particulars of Contracts or Arrangements with Related Parties:

All transactions with Related Parties are placed before the Audit Committee as also the Board for approval. Prior omnibus approval of the Audit Committee is obtained for the transactions which are foreseeable and of a repetitive nature. The transactions entered into pursuant to the approvals so granted are subjected to audit and a statement giving details of all related party transactions is placed before the Audit Committee and the Board of Directors on a quarterly basis.

The details of contracts or arrangements entered with the related parties along with the Justification is provided in Form AOC 2 as Annexure-6 of this report.

There were no materially significant related party transactions with Promoters, Directors, Key Managerial Personnel or other designated persons, which may have a potential conflict with the interest of the Company at large.

The policy on Related Party Transactions as approved by the Board is available at the web link: http://www. kcp.co.in/investors/policies-procedures.

No whole time Director or Managing Director of the company is in receipt of any salary or Commission from Subsidiary company in terms of Section 197(4) of the Companies Act, 2013.

13. Corporate Social Responsibility (CSR)

As part of its initiatives under "Corporate Social Responsibility (CSR), the Company has undertaken projects in the areas of Education, Livelihood, Women empowerment, Health, Water and Sanitation. These projects are largely in accordance with Schedule VII of the Companies Act, 2013.

The Company has constituted a CSR Committee in accordance with Section 135 of the Companies Act, 2013. The CSR Committee has formulated and recommended to the Board, a CSR Policy 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 www. kcp.co.in/policies-procedures.

The Company's CSR Policy as stated earlier is in alignment with the requirements of the Act. The CSR Policy Statement and Report on the activities undertaken during the year is annexed to the Board's Report as Annexure ‘3'.

Details of various social projects and initiatives undertaken as part of our Corporate Social Responsibility are given as report on CSR activities which forms part of the Annual Report.

14. Risk Management

The Company has a robust Risk Management framework to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Company's competitive advantage. The business risk framework defines the risk management approach across the organization at various levels, including documentation and reporting.

The Board of Directors of the Company has formed a Risk Management Committee (even it is not mandatory) to monitor the risk management plan for the Company and ensuring its effectiveness. The key risks identified by the Company and their mitigation measures are as under:

Raw Materials: Limestone being one of the primary raw materials used in the manufacture of cement, it is imperative for the Company to ensure its uninterrupted long-term availability.

Most of the Company's mining leases have been extended up to Year 2052 under the Mines and Minerals (Development & Regulation) Amendment Act 2015 (MMDR), thereby ensuring adequate limestone reserves to cater to the requirements of its plants till the said date, where after the Company will have to participate in auctions.

To address the above risks, the Company has taken various measures to augment resources by initiating the process for conversion of its prospecting licenses into mining leases. The Company is also participating in auctions with a view to securing new mining leases for its existing plants as well as for its expansions at different locations.

Cyber Security: With increased reliance on IT systems and the widespread usage of internet for doing business there is a constant threat to the Company's sensitive data assets being exposed to unethical hacking and misuse. The ramifications from cyber-attacks may not only been confined to mere loss of data but may result in business and reputation loss.

The Indian Government having recognized the cyber risks, has also introduced tighter Cyber Security laws and responsibilities have been entrusted to the Directors of the Company under the Companies Act, 2013 to take appropriate steps to ensure cyber security.

The Company's Cyber Security management framework aligns with industry standards and regulations.

The Company has adequate processes and systems in place to review on a regular basis the cyber security risks.

Legal Risks: The risks arising out of pending legal cases are reviewed on a regular basis by the Board from the perspective of probability of imposition of heavy penalty or receiving adverse orders which could have a high financial and/or reputational impact on the Company.

All-important cases are closely monitored by the Company and a broad strategy is outlined for effective management of litigation related risks..

Financial risk: The financial risk for your Company emanates from fluctuations in interest rate, exchange rate and commodity prices. Your Company has well defined policies for foreign exchange, treasury investments, interest rate and imported coal hedging. The policies are reviewed periodically to align with the changes in financial market practices and regulations.

Competition Risks: The Cement Industry is becoming intensely competitive with the foray of new entrants and some of the existing players adopting inorganic growth strategies. To mitigate this risk, the Company is leveraging on its expertise, experience and it's created capacities to increase market share, enhance brand equity / visibility and enlarge product portfolio and service offerings.

Risks, Concerns and Threats

The Company has formulated a Risk Management

Policy, which is available on company website www. kcp.co.in/policies-procedures.

15. Internal controls system and their adequacy

The internal financial controls within the Company are commensurate with the size, scale and complexity of its operations. The controls were tested during the year and no reportable material weaknesses either in their design or operations were observed.

The Company has robust policies and procedures which, inter alia, ensure integrity in conducting its business, safeguarding of its assets, timely preparation of reliable financial information, accuracy and completeness in maintaining accounting records and prevention and detection of frauds and errors and the Board has adopted policies and procedures for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, and timely preparation of reliable financial disclosures.

16. Vigil mechanism / Whistle blower policy

We have over the years established a reputation for doing business with integrity and displays zero tolerance for any form of unethical behaviour, Whistle blower policy is the vigil mechanism instituted by the Company to report concerns about unethical behaviour in compliance with the requirements ofthe Act and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

The Audit Committee of the Board oversees the functioning of this policy. Protected disclosures can be made by a whistle blower through several channels to report actual or suspected frauds and violation of Company's Code of Conduct and/or Ethics Policy. Details of the Whistle blower policy Policy have been disclosed on its Company's website www.kcp.co.in/ policies-procedures.

17. Subsidiary, Associate and Joint venture companies

Joint venture

Our company has a joint venture company Fives Cail KCP Limited.

Subsidiary Company:

Our Company does not have any Indian Subsidiary company.

KCP Vietnam Industries Limited, Vietnam is the material subsidiary as per the thresholds laid down under the SEBI Listing Regulations.

The Board of Directors of the Company has approved a Policy for determining material subsidiaries in line with the SEBI Listing Regulations as amended and the Policy has been uploaded on the Company's website.

Pursuant to Section 129 (3) of the Companies Act, 2013 and Ind-AS 110 issued by the Institute of Chartered Accountants of India, Consolidated Financial Statements presented by the Company include the financial statements of its subsidiary.

In terms of provisions of Section 136 of the Companies Act, 2013, separate audited accounts of the subsidiary companies shall be available on its website at www.kcp.co.in. The Company will make available physical copies of these documents upon request by any shareholder of the Company/ subsidiary interested in obtaining the same.

The Audit Committee and Board review the financial statements, significant transactions, working and the financial results of the subsidiary company in Vietnam, KCP Vietnam Industries Limited.

There is no material change in the nature of the business of the subsidiary. A statement containing brief financial details of the subsidiary and Joint venture company is included in the Annual Report in Form AOC 1 as Annexure 5.

No company ceased to be its Subsidiary, Joint Venture or Associate company during the year.

18. Extract of Annual Return

The details forming part of the extract of the Annual Return in Form MGT-9, as required under Section 92 of the Act, is annexed as Annexure ‘B' which forms an integral part of this Report and Form MGT 7 is also available on the Company's website viz. www.kcp.co.in.

19. Human resources / industrial relations

Our Company continuously focus on people related programmes aimed at attracting, developing and retaining talent within organisation by way of:

a) Employee Engagement - Company enjoys high engagement levels from its employees which is reflected in its consistently improving performance. Company continuously aims to enhance the engagement levels of its people by ensuring that its business practices are in alignment with the holistic growth and development of its people which drives them to be actively engaged with the Company.

b) Talent Management - Company is continuously working on strengthening and building talent in its Human Resources management team for supporting its growth.

c) Work Environment - Company provides a congenial work atmosphere where every employee enjoys his/her work and It works on creating people practices which makes it the best place to work for everyone.

d) Occupational Health and Safety

Safety of employees and workers is of utmost importance to the Company. To reinforce the safety culture in the Company, it has identified occupational Health & Safety as one of its focus areas. Various training programmes have been conducted at the plants.

The Company continuously undertakes initiatives aimed at providing a healthy and safe workplace to its people.

Company regularly conducts Safety Audit to identify and eliminate potential safety risks through an objective assessment of various equipments. Further, Mock drills on emergency preparedness are conducted to meet any contingency.

e) Industrial Relations

Employee Relations at all the Units and divisions of the company remained cordial.

20.Sustainability

Company's sustainability initiatives are focussed on low carbon emission, use of alternate fuels, water & resource conservation and environment management. Focus on sustainability is manifested in the Company being recognised as one of the most efficient cement manufacturing organisation with low energy consumption levels, use of alternative fuel and raw materials, low GHG emissions, etc.

Pursuant to the regulation 34(2) of the SEBI (LODR) Regulations, 2015 as amended Business Responsibility is annexed and forms part of this Report.

21. Report under the Prevention of Sexual Harassment Act

Pursuant to the Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and Rules framed there under Company has implemented a policy on prevention, prohibition and redressal of sexual harassment at the workplace, All women, permanent, temporary or contractual including those of service providers are covered under the policy and an Internal Complaints committee has been formed to redress the complaints. There were no complaints reported during the year.

22. Directors and Key Managerial Personnel

Dr. V.L. Dutt, Executive Chairman of the Company passed away on 18th February, 2020 and Dr.V.L.Indira Dutt was appointed as Chairperson & Managing Director of the Company w.e.f. 29th February, 2020.

Smt.Janaki Pillai was appointed as Independent Woman Director of the Company w.e.f 29th February, 2020.

In terms of Section 152 of the Act, and the Articles of Association of the Company, Smt. V.Kavitha Dutt, Director of the Company, is the director liable to retire by rotation at the ensuing Annual general Meeting (AGM) and being eligible for re-appointment, offers her self for re-appointment.

The Board of Directors of the Company on 18th June, 2020, on the recommendation of the Nomination & Remuneration Committee (‘N&RC') appointed Shri V.Chandra Kumar, Dr. Subbarao Vallbhaneni and Sri. Ravi Chitturi as Additional Directors w.e.f. 18th June, 2020 and to hold office up to the date of the ensuing Annual General Meeting (‘AGM').

Further, Board of Directors of the Company have also recommended the appointments of Sri V.Chandra Kumar, Dr. Subbarao Vallbhaneni and Sri.Ravi Chitturi as Directors (Non-Executive Non Independent), to the Members at the ensuing AGM, liable to retire by rotation.

The relevant details including profiles of Smt.V.Kavitha Dutt, Shri V.Chandra Kumar, Dr. Subbarao Vallbhaneni and Sri.Ravi Chitturi are included separately in the Notice of AGM of the Company forming part of the Annual Report as Annexure-1.

Independent Directors

The Company's Independent Directors have submitted requisite declarations confirming that they continue to meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1)(b) of the Lining Regulations.

The Independent Directors have also confirmed that they have complied with provisions of Schedule IV of the Act and the Company's Code of Conduct.

The Board is of the opinion that the Independent Directors of the Company possess requisite qualifications, experience and expertise in the fields of finance, people management. Strategy, auditing, tax and risk advisory services, banking, financial services, investments; and they hold higher Standards of integrity.

Regarding proficiency, the Company has adopted requisite Steps towards the inclusion of the names of all Independent Directors in the databank maintained with the Indian Institute of Corporate Affairs, Manesar (‘IICA'). Accordingly, the Independent Directors of the Company have registered themselves with the IICA for the said purpose.

In terms of Section 150 of the Act read with Rule 6(4) of the Companies (Appointment & Qualification of Directors) Rules, 2014, some of the Independent Directors are required to undertake online proficiency self-assessment test conducted by the IICA within a period of one (1) year from the date of inclusion of their names in the data bank.

Board evaluation

The evaluation of all directors, committees, Chairman of the Board and the Board as a whole was conducted based on the criteria and framework adopted by the Board. The evaluation parameters and the process have been explained in the Corporate Governance report.

Familiarization program for independent Directors:

All new independent directors inducted into the Board attend an orientation program. The details of the training and familiarization program are provide in the Corporate Governance Report. Further, at the time of the appointment of all independent directors, the Company issued a formal letter of appointment outlining his role, function, duties and responsibilities.

The format of the letter of appointment is available on the website of the Company.

23. Policy on Directors' Appointment and Remuneration and Other Details Pursuant to Section 134(3)(e) and Section 178(3) of the Companies Act, 2013, the Policy on appointment of Board members including criteria for determining qualifications, positive attributes, independence of a Director and the Policy on remuneration of Directors, KMP the Board has on the recommendation of the NRC framed a policy for selection and appointment of Directors, Senior Management and their remuneration and also framed the criteria for determining qualifications, positive attributes and independence of directors. The Remuneration Policy and criteria for Board nominations are available on the Company's website at http://www. kcp.co.in/investors/policies-procedures

The Board shall have minimum 6 and maximum 14 directors, unless otherwise approved. The Company shall have such person on the Board who complies with the requirements of the Companies Act, 2013, SEBI Regulations, Memorandum of Association and Articles of Association of the Company.

Composition of the Board shall be in compliance with the SEBI Regulations. Majority of the Directors shall have specialised knowledge/experience in the areas like Banking, Accountancy, Finance, etc.

The Company has constituted the Nomination and Remuneration committee, which has formulated the criteria for determining qualifications, positive attributes and independence of Directors and recommended a Remuneration policy to the Board.

Except for the Chairperson & Managing Director and Joint Managing Director no other directors are paid remuneration, but are paid sitting fees.

The Chairperson & Managing Director and Joint Managing Director are paid remuneration as approved by the Shareholders as per the applicable provisions of the Companies Act, 2013 and rules made there under but are not paid sitting fees.

The Chairperson & Managing Director and Joint Managing Director, Company Secretary and Chief Financial Officer shall be the Key Managerial Personnel (KMPs) of the Company.

All persons who are Directors / KMPs, members of Senior Management and all other employees shall abide by the Code of Conduct. Independent Directors are not entitled for ESOPs.

24. Disclosure on Audit Committee

The Audit Committee as on March 31,2020 comprises of the following Directors:

Sri. P.S. Kumar (Chairman), Smt. V. Kavitha Dutt, Joint Managing Director, Sri V.H. Ramakrishnan, Sri. Vijay Sankar, and Sri. M. Narasimhappa are members of the committee.

All recommendations of Audit Committee were accepted by the Board of Directors.

25. Material changes and commitments affecting the financial position of the Company.

There have been no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of this report.

26. Auditors

Pursuant to the provisions of Section 139 of the Companies Act, 2013, M/s. K.S. Rao & Company Chartered Accountants, (Firm Registration No.003109S) Hyderabad have been appointed as Statutory Auditors of the Company for a term of five consecutive years, on such remuneration as may be decided by the Board on the recommendations of Audit Committee of the Company.

The requirement for the annual ratification of auditors' appointment at the AGM has been omitted pursuant to Companies (Amendment) Act 2017 notified on May 7, 2018.

During the year, the Statuary Auditors have confirmed that they satisfy the Independence criteria required under Companies Act, 2013. Code of Ethics issued by Institute of Chartered Accountants of India.

The Notes on Financial Statements referred to in the Auditors' Report are self-explanatory and do not call for any further comments.

27. Cost Auditors and their Report

As per Section 148 of the Companies Act, 2013 read with Rules framed there under, M/s Narasimhamurthy & Co, Cost Accountants, Hyderabad and M/s.Mahadevan & Co, Chennai are appointed as the Cost Auditors for the Cement and Engineering units for the year 201920 are re-appointed as Cost Auditors for the financial year 2020-21 to conduct cost audit of the accounts maintained by the Company in respect of the various products prescribed under the applicable Cost Audit Rules.

The remuneration of Cost Auditors has been approved by the Board of Directors on the recommendation of Audit Committee. The requisite resolution for ratification of remuneration of Cost Auditors by members of the Company has been set out in the Notice of ensuing annual general meeting. The Cost Auditors have certified that their appointment is within the limits of Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified from appointment within the meaning of the said Act.

The Cost Audit Report for the financial year 2018-19, of M/s Narasimhamurthy & Co, Cost Accountants, Hyderabad and Mahadevan & Co, Chennai as the Cost Auditors, in respect of the various products prescribed under Cost Audit Rules was filed with the Ministry of Corporate Affairs within the due date.

28. Secretarial Auditors and their Report

As required under Section 204 of the Companies Act, 2013 and Rules There under, the Board appointed Smt. Sobana Pranesh, Practising Company Secretary as Secretarial Auditor of the Company for financial year 2020-2021.

The Secretarial Audit Report submitted by her in the prescribed form MR- 3 is attached as 'Annexure- 7' to this Report.

There are no qualifications or observations or adverse remarks or disclaimer of the Secretarial Auditors in the Report issued by her for the financial year2019-20.

Details in respect of frauds reported by Auditors other than those which are reportable to the Central Government

The Statutory Auditors, Cost Auditors or Secretarial Auditors of the Company have not reported any frauds to the Audit Committee or to the Board of Directors under Section 143(12) of the Companies Act, 2013 and rules made there under.

29. Number of Meetings of the Board

5 (Five) Meetings of the Board of Directors were held during the year, the details of which are given in the Corporate Governance Report.

30. Corporate Governance

The report on corporate governance along with a certificate from the Statutory Auditors as required under the Listing Regulations is annexed to this Report. The report also contains the details required to be provided on the board evaluation, remuneration policy, implementation of a risk management policy, whistleblower policy /vigil mechanism etc.

The Chairperson & Managing Director and the Chief Financial Officer have submitted a certificate to the Board regarding the financial statements and other matters as required under Regulation 17(8) read with Schedule II of Part B of the Listing Regulations.

31. Transfer to the Investor Education and Protection Fund

Pursuant to the applicable provisions of the Companies Act, 2013, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("the Rules") all unpaid or unclaimed dividends are required to be transferred by the Company to the IEPF established by the Central Government, after the completion of seven years. Further according to the Rules, the shares in respect of which dividend has not been encashed by the shareholders for seven consecutive years or more shall also be transferred to the demat account created by the IEPF Authority. Accordingly, the Company has transferred the unclaimed and unpaid dividends. Further, the corresponding shares will be transferred as per the requirements of the IEPF rules, details of which are provided on our website, at http:// www.kcp.co.in/ investor/Unpaid-Unclaimed-Dividend.

32. Particulars of Employees

The information required under Section 197(12) of the Companies Act, 2013 and the rules made there under, as amended, has been given in the annexure appended hereto and forms part of this report as Annexure 1.

a) The ratio of the remuneration of each director to the median employee's remuneration for the financial year and such other details as prescribed is as given below:

Name of the Director Director remuneration Median employee's remuneration Ratio
(Rs. Lacs) (Rs. Lacs)
Dr.V.L. Dutt - Executive Chairman 88.69 4.69 19:1
Dr.V.L. Indira Dutt - CMD 154.44 4.69 33:1
Smt. V. Kavitha Dutt - JMD 166.66 4.69 35:1

b) The percentage increase/ (decrease) in the median remuneration of employees in the Financial Year: (6.20%)

c) The number of permanent employees (Management staff) on the rolls of company: 710

d) If remuneration is as per the remuneration policy of the company: Yes

33. Significant and Material orders passed by the Regulators or Courts

There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations.

Particulars regarding Conservation of Energy, Technology absorption and Foreign exchange earnings and outgo.

34. Conservation of energy, technology absorption, foreign exchange earnings and outgo

The particulars relating to conservation of energy, technology absorption, research and development, foreign exchange earnings and outgo as required to be disclosed under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are given in Annexure- 2 to this Report.

35. Other Disclosures

A statement comprising the names of top 10 employees in terms of remuneration drawn and every persons employed throughout the year, who were in receipt of remuneration in terms of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed as Annexure 1 and forms an intergral part of this annual report.

None of the employees listed in the said Annexure is a relative of any Director of the Company. None of the employees hold (by himself or along with his spouse and dependent children) more than two percent of the Equity Shares of the Company.

The Company has complied with the applicable Secretarial Standards issued by the Institute of Company Secretaries of India.

36. Director's Responsibility Statement

To the best of knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3)(c) of the Act:

(i) that in the preparation of the Annual Accounts for the year ended March 31,2020, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(ii) the directors had selected such accounting policies and applied them consistently and made judgements 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 31,2020 and ofthe 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 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) 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.

Acknowledgements

The Board of Directors wishes to place on record their gratitude to the Central Government, State Governments, Company's Bankers, Customers, dealers and other business associates for the assistance, co-operation and encouragement they extended to the Company.

Your Directors wish to wholeheartedly thank the employees for their sincere and devoted contribution to the company's continued performance. Your Directors are thankful to the shareholders and deposit holders for their continued patronage.

For and on behalf of the Board of Directors

(Dr.V.L. Indira Dutt)
Place: Chennai Chairperson & Managing Director
Date: 18th June, 2020

   

K C P Ltd Company Background

V L Indira DuttV L Indira Dutt
Incorporation Year1941
Registered OfficeRamakrishna Buildings,2 Dr P V Cherian Crescent
Chennai,Tamil Nadu-600008
Telephone91-044-66772600,Managing Director
Fax91-044-66772620
Company SecretaryY Vijayakumar
AuditorK S Rao & Co
Face Value1
Market Lot1
ListingBSE,NSE,
RegistrarIntegrated Registry Mgt Ser.Pv
2nd Floor Kences Tow,1 Ramakrishna Street,Usman Road T.Nagar ,Chennai-600017

K C P Ltd Company Management

Director NameDirector DesignationYear
V L Indira Dutt Chairperson & M D 2020
V H Ramakrishnan Independent Director 2020
Kavitha D Chitturi Joint Managing Director 2020
Y Vijayakumar Company Secretary 2020
Vijay Sankar Independent Director 2020
P S Kumar Independent Director 2020
M Narasimhappa Independent Director 2020
Janaki Pillai Independent Director 2020
V Chandrakumar Prasad Additional Director 2020
Subbarao Vallabhanani Additional Director 2020
Ravi Chitturi Additional Director 2020

K C P Ltd Listing Information

K C P Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Cement MT 000843.4393
Engineering Job Work NA 00070.7617
Hospitality Services NA 00017.9644
Interest Income NA 0002.4799
Other Operating Revenue NA 0001.735
Scrap Sales NA 0001.2544
Power MW 0000.3171
Amortisation of Govt Grant NA 0000.02
Chilly Oleoresin & Colour Kg 0000
Heavy Engineering Products NA 0000
Service Receipts NA 0000
Adjustment NA 0000
Insurance Claims Received NA 0000
Curcumin Powder Kg 0000
Power-Wind Energy Kwh0000
Power-Wind Energy MW 0000
Wind Power Kwh0000
Annato Dye Kg 0000
Engineering Products-General NA 0000
Waste Heat Recovery Unit Kwh0000
Waste Heat Recovery Unit MWH0000
Cement Machinery NA 0000
Equip.& Component-Sugar Mach NA 0000
Others NA 0000
Sales NA 0000
Clinker TPA0000
Bio - Products NA 0000
Electrical Energy Kwh0000
Hydel Power Kwh0000
Hydel Power MW 0000

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