business surplus for organisational growth. But
considering robust business growth and improved
profitability, the Board of Directors recommended
175% dividend on equity shares (
`
3.50 per equity
share, face value of
`
2). The total payout will be
`
309.50 million (including dividend distribution
tax of
`
44.96 million).
Corporate highlights
Inorganic growth:
Jaxx Vitrified, a subsidiary
of your Company acquired a unit proximate to
its existing facility having 2.60 MSM capacity
for manufacturing polished vitrified tile at an
investment of
`
350 million. The unit strengthened
your Company presence in West and South India
markets.
Value addition:
Your Company also commissioned
a 3.40 MSM glazed vitrified tile unit in the area
vacated by the closure of the polished vitrified tile
unit at our Sikandrabad facility. Your Company’s
growing presence in the glazed vitrified tile
segment will enhance realisation and strengthen
business margins going ahead.
Visibility expansion:
Your Company expanded its
Kajaria Galaxy network by opening 25 state-of-
the-showrooms in the last 24 months. These 4000
sq ft outlets exclusively feature the Kajaria product
range comprising ceramic, polished vitrified and
glazed vitrified tiles – providing the discerning
customer with a multitude of décor solutions
under one roof. This initiative will facilitate in
achieving our business targets.
Investment:
WestBridge Crossover Fund, LLc.
agreed to invest
`
1.50 billion in your Company.
Kajaria issued 20 lac equity shares at a price of
`
250/- aggregating to
`
500 million and
`
38.85
lac warrants convertible into equity shares of
the Company at a price
`
257.372433 per share
aggregating to
`
1 billion. These warrants are
convertible by November 2014. The Company
has received
`
250 million as advance towards
warrants.
Consolidated Financial Statements
In accordance with the Accounting Standards
(AS-21) Consolidated Financial Statement are
attached and form part of the Annual Report and
Accounts.
Accounts of subsidiaries
Pursuant to the general circular no. 1/2011 issued
by Ministry of Corporate Affairs, Government
of India the Individual accounts of the five
subsidiaries of the Company (M/s Soriso Ceramic
Private Limited, M/s Jaxx Vitrified Private Limited,
M/s Vennar Ceramics Limited, M/s Cosa Ceramics
Private Limited, Kajaria Sanitaryware Private
Limited) for the year ended on 31st March 2014
have not been attached to the Annual Report.
However a statement giving information as
required by the aforesaid circular is attached to
the Annual Report. The Annual Accounts of the
subsidiary companies will be available at the
registered office of the Company and also at the
venue during the Annual General Meeting. The
Company shall provide free of cost the copy of
Annual Accounts of its subsidiary companies to
the shareholders upon their request.
Fixed deposits
The Company did not invite/accept any fixed
deposit within the meaning of Section 58A of the
Companies Act, 1956, and the rules made there
under.
Outlook
The ‘new urban’ consumption from Tier II and
Tier III locations has significantly expanded the
opportunity pie for the Indian tile sector. As
India stands steadfast in its resolve to accelerate
33
Annual Report 2013-14
