2019-20 and Intimation of Book Closure
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Kitex Garments Limited (CIN: L18101KL1992PLC006528) Regd. Office: P. B. No. 5, Kizhakkambalam, Alwaye, Kochi, Kerala, 683562 Phone: 91 484 4142000, Fax: 91 484 2680604 Email: [email protected] website: www.kitexgarments.com Ref: KGL/SE/2020-21/SEPT/02 September 7, 2020 To, The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department, ‘Exchange Plaza’, 1st Floor, New Trading Ring, Bandra - Kurla Complex Rotunda Building, P J Towers, Bandra (E), Mumbai, Dalal Street, Fort Mumbai, Maharashtra - 400051. Maharashtra – 400001 Script No: 521248 Script No: KITEX Sub:- ANNUAL GENERAL MEETING, 28th AGM NOTICE ALONG WITH ANNUAL REPORT FY 2019-20 AND INTIMATION OF BOOK CLOSURE This is to inform you that 28th Annual General Meeting (AGM) of the members of the Company will be held on Wednesday, September 30, 2020 through Video Conferencing (VC) / Other Audio Visual Means (OAVM) facility at 10.00 A.M. (IST) to transact the business set out in the Notice of said meeting. In view of the continuing COVID-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide its General Circular no. 20/2020 dated May 5, 2020 read with General Circulars no 14/2020 and 17/2020 dated April 8, 2020 and April 13, 2020 (collectively referred to as “MCA Circulars”) and SEBI circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated May 12, 2020, permitted holding of the AGM through VC/ OAVM, without the physical presence of the Members at a common venue. Pursuant to Regulation Reg 30 and 34(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we are submitting herewith the Annual Report of the Company along with Notice of AGM for the FY 2019-20 which has dispatched/ sent to the members. Owing to the difficulties involved in dispatching the physical copies of AGM Notice and Annual Report of the Company for the year ended March 31, 2020 including therein the Audited financial statements of the Company for FY 2019-20, the aforesaid documents has sent only by email to the members. Annual Report containing the Notice is also uploaded on the Company’s website: www.kitexgarments.com Also further to the publication of newspaper advertisement dated August 15, 2020 which was submitted to the stock exchanges, informing the members to register/ update email id who have not registered their email id with the Company/ Company’s RTA/ Depository Participant for the purpose of obtaining notice of 28th AGM of the Company along with Annual Report for the financial year March 31, 2020. Such members can obtain Annual Report and/ login details for joining AGM of the Company by sending scanned copy of signed request letter mentioning Name, Folio no. and complete address, self-attested scanned copy of PAN card and any document like Aadhar card, Driving license, Voter ID etc in support of address of the member as registered with the Company by email to the Company’s email id viz., [email protected] with a copy to the company mail id viz., [email protected]. Members holding shares in dematerialized form are requested to update their email addresses with their respective depositories. Pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of the SEBI Listing Regulations, the Register of Members and Share Transfer Books of the Company will remain closed from September 24, 2020 to September 30, 2020 (both days inclusive) for the purpose of AGM for the FY 2019-20. The Cut-off date for the purpose of E-voting is fixed as September 23, 2020. Those shareholders holding shares either in physical form or demat form as on cut-off shall be entitled to avail the facility of remote e-voting as well as e-voting during the AGM. Request you to take the aforesaid information on record and oblige. Yours faithfully, For Kitex Garments Limited CS. Mithun B Shenoy Company Secretary & Compliance officer (ICSI M. No. FCS 10527) Enclosure: As above KITEX GARMENTS LIMITED CAPABILITY AGILITY RESILIENCE Annual Report 2019-20 OUR ILLUSTRIOUS FOUNDER & OUR FOUNDING VISION At Kitex, enriching people through caring is inherent in our business model. Since the inception of the company our founder M.C Jacob had implemented the concept ‘caring’ as its basic motto and today we believe that caring is the very winning formula of our company. Over the years we have realised that when our actions are filled with caring, the business, employee & community relations are strengthened. Our founder Late Mr. Meckamkunnel Chacko Jacob (M.C.Jacob) was moved by the plight of the farmers who worked in his father’s fields. That’s when he decided to set up an aluminium-based unit in 1968 with an employee strength of eight. This was the first baby step to put Kizhakkambalam, then a remote village in Kerala into a hub of industrial activities. The Anna-Kitex group of companies which he founded, since then took wings and grew multifold. By the time he departed from this world in 2011, the group had become a diversified business conglomerate having interests in Aluminium, Spices, Textiles and Apparels. The group provided scores of people livelihood by giving employment as well as through its regular social interventions. Mr. M.C.Jacob (22.04.1933 – 05.06.2011) Disclaimer Statements in this report that describe the Company’s objectives, projections, estimates, expectations or predictions of the future may be ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. The Company cautions that such statements involve risks and uncertainty and that actual results could differ materially from those expressed or implied. Important factors that could cause differences include raw materials’ cost or availability, cyclical demand and pricing in the Company’s principal markets, changes in government regulations, economic developments within the countries in which the Company conducts business, and other factors relating to the Company’s operations, such as litigation, labour negotiations and fiscal regimes. MANAGEMENT NARRATIVES TABLE OF CONTENTS MANAGEMENT NARRATIVES SECRETARIAL REPORTS STANDALONE FINANCIALS Capability, Agility, Resilience 02 Management Discussion & Analysis 21 Independent Auditor’s Report 102 Chairman’s Message 04 Notice 27 Balance Sheet 110 About Us 06 Directors’ Report 41 Statement of Profit and Loss 111 Kitex Value Chain 08 Corporate Governance Report 72 Cash Flow Statement 112 Review of Operations 10 Business Responsibility Report 93 Statement of Changes in Equity 113 Financial Highlights 12 Notes 114 8 Years Highlights 13 CONSOLIDATED FINANCIALS Our People 14 Independent Auditor’s Report 147 Corporate Social Responsibility 15 Balance Sheet 153 Corporate Information 20 Statement of Profit and Loss 154 Cash Flow Statement 155 Statement of Changes in Equity 156 Notes 157 Annual Report 2019-20 1 Scalable manufacturing capability is one of the strongest link in Company’s value chain. Capability Agility Resilience 2 Kitex Garments Limited MANAGEMENT NARRATIVES Capability Manufacturing capability is one of the strongest link in Company’s value chain. The company has achieved its position as a world-renowned infant garment manufacturer through its multiple functional capabilities in which the company’s state of the art manufacturing facility backed by the three pillars of manufacturing i.e factors, standards and costs. Factors Standards Cost Dedicated trained labour Quality standards Strong balance sheet Land availability IT backed integrated Processes and automation State of the art infrastructure functions to cut costs Resources / energy Consistent - sops Seamless supply chain management Global technology Reliable global source for customers Regular capex programmes Focus on environment– Brand equity in the global safety–security market Agility KGL strives to stay ahead of the curve by imbibing the best of garment manufacturing and consistent capex programmes for technology and capacity enhancements. We relentlessly upgrade our product designing, value chain and customer engagement capabilities to remain agile in a highly competitive global market. Capacity Increase 280,000 432,000 Units per day (FY10) Units per day (FY20) Resilience KGL’s Business resilience is its ability to quickly adapt to disruptions while maintaining continuous business operations and safeguarding people, assets and overall brand equity. We are able to manage our business continuity through our agile operational model and manpower diversity. Annual Report 2019-20 3 Chairman’s Message To further streamline our processes and reduce costs, we have initiated renewed cost optimization strategies at various levels of our production Sabu M Jacob Chairman & Managing Director 4 Kitex Garments Limited MANAGEMENT NARRATIVES Dear Shareholders, FY 2020-21 is a challenging year for your company with significant impact on production in Q1. With With immense pleasure, I would like to inform you that the overall retail volumes through stores as well as this year, your company has touched a record turnover online picking up in USA, we believe that Q2 will be of 78,357.54 lakhs signifying a growth of 24.52% over a regaining period in which we could increase the previous financial year. The operating profit stood at production capacity to 60% from 35% in Q1. Rs. 14,317.12 lakhs compared to Rs. 13,019.01 lakhs in the previous year. This growth is an outcome of We are continuously monitoring the current situation Kitex Garments Ltd enhancing its global brand equity with respect to all challenges and opportunities in the highly regulated infantwear markets such a US including the situation emerging from USA – China and Europe trade war. I convey my profound thanks to our customers, As you leaf through the pages of this year’s Annual employees and suppliers for this remarkable outcome. Report, you will read about our unique capabilities and key differentiators to stay ahead of the curve. Last FY2020 ended with the spread of COVID-19 pandemic but not least the initiatives taken by the Company for across the globe.