Annual Report, 2016-17

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Growth drivers
The Indian tile industry is poised to experience significant growth
over the coming year. This optimism stems from the important
realities that are expected to catalyse tile demand pan-India.
Rollout of GST: This most significant fiscal policy announcement
post Independence is expected to create a level playing field
between the informal players and the organised segment of
the Indian tile industry – making branded tiles affordable which
should enhance consumer pull.
Housing sector: According to credible opinion makers, the
housing sector is at a tipping point and will be the economy’s
next big growth driver. According to CLSA, India expects to build
60 million new homes to be built between 2018 and 2024. In
addition, declining home finance rates and increasing funding
options are expected to catalyse the demand for housing over
the coming years.
Policy driven demand: The number of ambitious programmes
launched in the last two years by the Centre, like Smart Cities
Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019),
Atal Mission for Rejuvenation, Urban Transformation (AMRUT)
and Housing for all by 2022 is expected to provide significant
impetus to the demand for tiles.
During the year under review, there are no material changes and
commitments affecting the financial position of the Company
and also no change in the nature of business of the Company.
Dividend
Your Directors have recommended a dividend of Rs. 3 (i.e.
300%) on equity shares (previous year Rs. 5.00 per equity share
of a face value of Rs. 2 each fully paid up) of a face value of
Re. 1 each fully paid-up for the financial year ended on 31st
March 2017. If approved, the total payout is expected to be
Rs. 57.39 crore (including dividend distribution tax of Rs. 9.71
crore). The dividend payout for the year under review has been
formulated in accordance with the Company’s Policy - to pay
sustainable dividend keeping in mind linked to its long-term
growth aspiration of the Company.
Consolidated Financial Statements
The Company adopted Indian Accounting Standard (Ind-
AS) from April 1, 2016 and accordingly, the Consolidated
Financial Statements have been prepared in accordance with
the Accounting Standard notified under Section 133 of the
Companies Act, 2013 and the relevant rules issued thereunder
read with the SEBI (Listing Obligations and Disclosure
Requirements) Regulations 2015 (‘SEBI (LODR) Regulations,
2015’) and the other accounting principles generally accepted
in India. The Consolidated Financial Statements form part of the
Annual Report.
Holding, Subsidiaries, Associate, Joint
Venture Companies and their performance
During the year under review, no new company has become
subsidiary of the Company. Kajaria Ceramics Kazakhstan, LLP
(UIN: KAWAZ20140481) has ceased to be the subsidiary of the
Company.
A report on performance and financial position (Form AOC-1)
of each of the subsidiaries as per the Companies Act, 2013 is
provided as Annexure-1.
Share Capital
The Authorised Share Capital of the Company is Rs. 35.00 Crores
comprising of 25.00 Crores of equity shares of Re. 1 each and
10 Lakh preference shares of Rs. 100 each. The paid up equity
share capital of the Company as on 31st March 2017 was Rs.
15.89 Crores divided into 15,89,38,000 equity shares of Re. 1
each.
During the year under review, the equity shares of the Company
have been sub-divided from Rs. 2 per share to Re. 1 per share
(w.e.f. October 4, 2016). Accordingly, the fully paid equity
shares of Re. 1 each is 15,89,38,000 equity shares.
During the year under review, the Company has not issued shares
with differential voting rights. As on 31st March 2017, none of
the Directors of the Company hold instruments convertible into
equity shares of the Company.
Employee Stock Option Scheme (ESOP
2015)
The ESOP 2015 was approved by the Board of Directors and the
shareholders on 7th September, 2015 for issue and allotment of
options exercisable into not more than 10,62,000* of Re. 1 each
(Originally ESOP Plan was for 5,31,000 shares of Rs. 2 each) to
eligible employees of the Company and its subsidiaries. The ESOP
2015 is administered by the Nomination and Remuneration
Committee of the Board of Directors of the Company. On 20th
October 2015, the Nomination and Remuneration Committee
of the Company had granted 4,58,000* of Re. 1 each (Originally
granted shares were 2,29,000 of Rs. 2 each) stock options to the
employees of the Company. During the year 2016-17, 40,000
shares of Re. 1 each have been forfeited due to resignation of
ESOP holders. Details regarding ESOP 2015 are given at Note
No. 38 to the financial statements.
There is no material change in the scheme and the scheme is
in compliance with the SEBI (SBEB) Regulations, 2014. Further
the details required under SEBI (SBEB) Regulations, 2014 are
disclosed on the website of the Company and the same can be
accessed at
* During the year under 2016-17, the equity shares of the
Company have been sub-divided from Rs. 2 per share to Re. 1
per share (w.e.f. October 4, 2016).
035 ANNUAL
REPORT 2016-17 KAJARIA
CERAMICS
CORPORATE
OVERVIEW
MANAGEMENT
REPORTS
FINANCIAL
STATEMENTS