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Kanani Industries Ltd.

BSE: 506184 Sector: Consumer
NSE: KANANIIND ISIN Code: INE879E01037
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OPEN 11.49
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VOLUME 7232
52-Week high 34.40
52-Week low 10.05
P/E 285.00
Mkt Cap.(Rs cr) 113
Buy Price 11.00
Buy Qty 600.00
Sell Price 11.40
Sell Qty 119.00
OPEN 11.49
CLOSE 11.48
VOLUME 7232
52-Week high 34.40
52-Week low 10.05
P/E 285.00
Mkt Cap.(Rs cr) 113
Buy Price 11.00
Buy Qty 600.00
Sell Price 11.40
Sell Qty 119.00

Kanani Industries Ltd. (KANANIIND) - Director Report

Company director report

To

The Members of KANANI INDUSTRIES LIMITED

Your Directors have pleasure in presenting their 33rd Annual Report on theStandalone and Consolidated Audited Statement of Accounts of Kanani Industries Limited["Company"] for the Financial Year ended March 31 2016.

FINANCIAL RESULTS

The summarized financial performance of the Company for the FY 2015-16 and FY 2014-15is given below:

(Rs. in Lacs)

Particulars Standalone Consolidated
2015-2016 2014-2015 2015-2016 2014-2015
Gross Income 8525.61 6967.83 49637.38 44433.03
Profit Before Tax Interest and Depreciation 51.74 87.29 248.89 264.50
Finance Charges 14.88 65.16 44.42 86.29
Provision for Depreciation 8.87 9.91 8.87 9.91
Net Profit Before Tax 42.87 20.52 210.49 176.61
Provision for Tax 8.18 3.97 19.08 10.33
Net Profit After Tax 34.69 16.55 191.41 166.27
Balance of Profit brought forward 2940.98 2938.94 3500.20 3348.45
Balance available for appropriation 2952.04 2940.98 3667.98 3500.20
Proposed Dividend on Equity Shares
Tax on proposed Dividend
Transfer to General Reserve
Surplus carried to Balance Sheet 34.69 16.55 191.41 166.27

REVIEW OF OPERATIONS

During the year under review the Company has posted total Income of 852561063/-as against 696782891/- for the corresponding previous year.

Net Profit after Tax for the year under review was 3468624/- as against NetProfit after Tax of 1655012/- in the corresponding previous year.

FUTURE OUTLOOK

The Jewellery business will continue its growth path through various initiativesincluding launching of new collections & Designs increasing share of studdedjewellery and achieving design leadership. Overall the year 2016-17 will be a year wherethe Company would drive for strong and profitable growth in all its consumer businesses.

DIVIDEND AND RESERVES

In order to conserve the resources for the further growth of the Company yourDirectors think fit not to recommend any dividend for the year under review.

SHARE CAPITAL

The Paid-up Equity Share Capital of the Company as on 31st March 2016 is98934000/- comprising of 98934000 shares of 1/- each. During the year under reviewthe Company has not issued any equity shares.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

At the 32nd Annual General Meeting held on September 28 2015 Mr. HarshilKanani was re-appointed as the Director of the Company liable to retire by rotation.

Further the Board of Directors of the Company at their meeting held on March 31 2015appointed Mrs. Ami Jariwala as an Additional (Woman) Director of the Company andsubsequently she was appointed as an Independent Director to hold office for a period of5 (five) consecutive years at the 32nd Annual General Meeting.

Further Mr. Shailesh Patel was appointed as an Independent Director to hold office fora period of 5 (five) consecutive years at the 32nd Annual General Meeting.Thereafter Mr. Shailesh Patel resigned as Director of the Company w.e.f. 1stJuly 2016.

The said Independent Directors fulfils the conditions specified in the Companies Act2013 and the Rules made there under and they are independent of the management and havesubmitted the Declarations as prescribed under Section 149(6) of the Companies Act 2013.

In accordance with section 152(6) of the Companies Act 2013 and in terms of Articlesof Association of the Company Mr. Premjibhai Kanani (DIN: 01567443) Director of theCompany retires by rotation and being eligible; offers himself for re-appointment at theforthcoming 33rd Annual General Meeting. The Board recommends the saidreappointment for shareholders’ approval.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) & 134(5) of the Companies Act 2013 the Board ofDirectors of the Company hereby confirm that:

(a) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures;

(b) the directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;

(c) the directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors have prepared the annual accounts on a going concern basis; and

(e) the directors have laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

(f) the directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required pursuant to Section 197 read with Rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel) Amendment Rules 2016 in respect ofemployees of the Company is enclosed as Annexure I and forms part of thisReport.

Further as per the provisions specified in Chapter XIII of Companies (Appointment& Remuneration of Managerial Personnel) Amendment Rules 2016 none of the employees ofthe Company are in receipt of remuneration exceeding 10200000/- per annum if employedfor whole of the year or 850000/- per month if employed for part of the year.

Further the names of top ten employees in terms of remuneration drawn are disclosed inAnnexure II and forms part of this Report.

EXTRACT OF ANNUAL RETURN

The details forming part of the Extract of the Annual Return in Form MGT-9 as requiredunder Section 92 of the Companies Act 2013 is included in this Report as AnnexureIII and forms part of this Report.

NUMBER OF BOARD MEETINGS

The intervening gap between the meetings was within the period prescribed under theCompanies Act 2013 and the Listing Agreement.

During the year 06 (Six) Board Meetings were held during the year ended March2016 the dates which are 10th April 2015 30th May2015 06th August 2015 10th October 2015 31stOctober 2015 and 5th February 2016

Name of the Directors No. of Board Meetings attended
Mr. Premjibhai Devjibhai Kanani 6
Mr. Harshil Premjibhai Kanani 6
Mr. Devendrakumar Karshanbhai Kikani 6
Ms. Ami Dhaval Jariwala 6
Mr. Shailesh Patel 6

BOARD EVALUATION

Pursuant to the provisions of the Companies Act 2013 and the Listing Agreement SEBI(LODR) Regulations 2015 the Board has carried out an annual performance evaluation ofits own performance the directors individually as well as the evaluation of the workingof its Committees. The Directors expressed satisfaction with the evaluation process.

INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosure to the Board that theyfulfill all the requirements as to qualify for their appointment as Independent Directorunder the provisions of section 149 of the Companies Act 2013 as well as Regulation 17 ofthe Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015.

DETAILS OF SUBSIDIARY/JOINT VENTURES / ASSOCIATE COMPANIES

The Statement AOC-1 pursuant to the provisions of Section 129 (3) of the Companies Act2013 read with Rule 5 of the Companies (Accounts) Rules 2014 regarding Subsidiary Companyis enclosed as Annexure IV to this Report.

STATUTORY AUDITORS’ AND AUDITORS’ REPORT

M/s. Rajpara & Co. Chartered Accountants Surat [Firm Regd. No.114232W] do notseek re election due to their unwillingness to act as Auditors’ of the Company forthe financial year 2016-2017.

Your Directors recommend that M/s. Deepak Mehta & Associates. CharteredAccountants Mumbai [Firm Regd. No. 102239W] be appointed as the Statutory Auditors ofthe Company to hold office for the term of 5 years from the conclusion of 33rdAnnual General Meeting held for Financial Year ended 2016 till the conclusion of the 38thAnnual General Meeting to be held for the Financial Year 2021.

As required under the provision of section 139 of the Companies Act 2013 the companyhas obtained a written consent and eligibility certificate from M/s. Deepak Mehta &Associates. Chartered Accountants Mumbai to the effect that appointment if made wouldbe in conformity with the limits specified in the said section. Auditors Report as issuedby M/s. Rajpara & Co. Chartered Accountants Auditors of the Company is selfexplanatory and need not call for any explanation by your Board.

SECRETARIAL AUDIT

In terms of Section 204 of the Act and Rules made there under M/s. Deep Shukla &Associates Practicing Company Secretaries have been appointed Secretarial Auditors ofthe Company. The Secretarial Audit Report is enclosed as Annexure VI to thisreport.

EXPLANATION(S)/ COMMENT(S) PURSUANT TO SECTION 134(3)(f)(ii) OF THE COMPANIES ACT 2013

1. The Company has faced technical difficulties in filing eforms on MCA portal andhence the same were pending.

2. The Company has appointed Whole time Company Secretary in employment w.e.f. 21stMarch 2016.

3. Due to some technical reasons the website of the Company faced some difficulties inproper functioning; however the said issues were sorted out and the website is workingeffectively.

INTERNAL AUDIT & CONTROLS

The Company has in place adequate internal financial controls with reference to thefinancial statement. The Audit Committee of the Board periodically reviews the internalcontrol systems with the management Internal Auditors and Statutory Auditors. Significantinternal audit findings are discussed and follow-ups are taken thereon.

Further M/s. Gosar Associates Chartered Accountants M.No. 045010 were appointed asInternal Auditors of the Company w.e.f. 05/02/2016 pursuant to Section 138 of theCompanies Act 2013.

COMPOSITION OF AUDIT COMMITTEE

Your Company has formed an Audit Committee as per the Companies Act 2013 and thelisting agreement. All members of the Audit Committee possess strong knowledge ofaccounting and financial management.

COMPOSITION OF NOMINATION & REMUNERATION COMMITTEE

Your Company has formed a Nomination & Remuneration Committee to lay down norms fordetermination of remuneration of the executive as well as non-executive directors andexecutives at all levels of the Company. The Nomination & Remuneration committee hasbeen assigned to approve and settle the remuneration package with optimum blending ofmonetary and non-monetary outlay.

NOMINATION AND REMUNERATION POLICY

The Board of Directors has framed a policy which lays down a framework in relation toremuneration of Directors. This policy also lays down criteria for selection andappointment of Board Members. The Board of Directors is authorized to decide Remunerationto Executive Directors. The Remuneration structure comprises of Salary and Perquisites.Salary is paid to Executive Directors within the Salary grade approved by the Members. TheNomination & Remuneration committee has been assigned to approve and settle theremuneration package with optimum blending of monetary and non-monetary outlay.

EMPLOYEES’ STOCK OPTION PLAN

The Company has not provided stock options to any employee.

VIGIL MECHANISM

In pursuant to the provisions of section 177(9) & (10) of the Companies Act 2013a Vigil Mechanism for directors and employees to report genuine concerns has beenestablished. The Vigil Mechanism Policy has been uploaded on the website of the Company athttp://www.kananiindustries.com employees of the Company are made aware of the said policyat the time of joining the Company.

RISK MANAGEMENT POLICY

The Company has laid down the procedure to inform the Board about the risk assessmentand minimization procedures. These procedures are reviewed by the Board annually to ensurethat there is timely identification and assessment of risks measures to mitigate themand mechanisms for their proper and timely monitoring and reporting.

The Company does not fall under the ambit of top 100 listed entities determined on thebasis of market capitalisation as at the end of the immediately preceding financial year.Hence compliance under Regulation 21 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 is not applicable.

CORPORATE GOVERNANCE REPORT

In compliance with Regulation 34(3) read with Schedule V(C) of the Listing Regulationsa Report on Corporate Governance forms part of this Annual Report. The Auditors’certificate certifying compliance with the conditions of corporate governance asprescribed under Schedule V(E) of the Listing Regulations is annexed to the CorporateGovernance Report.

DEPOSITS

The Company has neither accepted nor renewed any fixed deposits during the year underreview under Section 76 of the Companies Act 2013. There are no unclaimed depositsunclaimed / unpaid interest refunds due to the deposit holders or to be deposited to theInvestor Education and Protection Fund as on March 31 2016.

LOANS & GUARANTEES

During the year under review the Company has not provided any loan guaranteesecurity or made any investment covered under the provisions of Section 186 of theCompanies Act 2013 to any person or other body corporate.

INSURANCE

The properties/assets of the Company are adequately insured.

RELATED PARTY TRANSACTIONS

As no related party transaction was entered into by the Company with PromotersDirectors Key Managerial Personnel or other designated persons pursuant the provisions ofSection 188(1) of the Companies Act 2013 during the financial year 2015-16 theparticulars as required in form AOC-2 have not been furnished.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management Discussion and Analysis Report which gives a detailed state of affairsof the Company’s operations form a part of this Annual Report.

CONSERVATION OF ENERGY RESEARCH AND DEVELOPMENT TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE

The details of conservation of energy technology absorption foreign exchange earningsand outgo are as follows:

(a) Conservation of Energy:

Even though its operations are not energy-intensive significant measures are taken toreduce energy consumption by using energy-efficient equipment. The Company regularlyreviews power consumption patterns across all locations and implement requisiteimprovements/changes in the process in order to optimize energy/ power consumption andthereby achieve cost savings. Energy costs comprise a very small part of theCompany’s total cost of operations. However as a part of the Company’sconservation of energy programme the management has appealed to all the employees/workersto conserve energy.

(b) Absorption of Technology:

I. The efforts made towards technology absorption:

The Company values innovation and applies it to every facet of its business. Thisdrives development of distinctive new products ever improving quality standards and moreefficient processes.

The Company has augmented its revenues and per unit price realization by deployinginnovative marketing strategies and offering exciting new products. The depth of designingcapabilities was the core to our success over the years.

The Company uses the service of in-house designers as well as those of free-lancers indeveloping product designs as per the emerging market trends. The Company uses innovationin design as well as in technology to develop new products.

II. Benefits derived as a result of the above efforts:

As a result of the above the following benefits have been achieved:

a) Better efficiency in operations

b) Reduced dependence on external sources for technology for developing new productsand upgrading existing products

c) Expansion of product range and cost reduction

d) Greater precision

e) Retention of existing customers and expansion of customer base

f) Lower inventory stocks resulting in low carrying costs.

III. The Company has not imported any technology during the year under review;

IV. The Company has not expended any expenditure towards Research and Developmentduring the year under review.

[Amt. in Rs.]
Particulars FY 2015-2016 FY 2014-2015
C.I.F. Value of Imports 833116436 680057640
F.O.B. Value of Exports 848791496 694868495

TRANSFER OF AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND

The Company did not have any funds lying unpaid or unclaimed for a period of sevenyears. Therefore there were no funds which were required to be transferred to InvestorEducation and Protection Fund (IEPF).

Unclaimed Dividend Amount (Rs.)
Unclaimed Dividend F.Y. 2008-09 - Interim 590
Unclaimed Dividend F.Y. 2008-09 - Final 899
Unclaimed Dividend F.Y. 2009-10 - Interim 1807
Unclaimed Dividend F.Y. 2009-10 - Final 2308

Members are requested to note that after completion of seven years no claims shall lieagainst the said fund or company for the amounts of dividend so transferred nor shall anypayment be made in respect of such claims.

CORPORATE SOCIAL RESPONSIBILITY

The Company is committed to discharging its social responsibility as a good corporatecitizen.

The Board of Directors has framed a policy which lays down a framework in relation toCorporate Social Responsibility of the Company. This policy also lays down to lay downguidelines for the company to make

CSR a key business process for sustainable development for the Society. The details ofthis policy are explained by way of Annexure V.

During the year under review the Company has not expended any amount towards CSRactivities as the same is not applicable to the Company pursuant to section 135 of theCompanies Act 2013.

COST AUDIT

As per the Cost Audit Orders and in terms of the provisions of Section 148 and allother applicable provisions of the Companies Act 2013 read with the Companies (Audit andAuditors) Rules 2014 Cost Audit is not applicable to our Company.

OBLIGATION OF COMPANY UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

In order to prevent sexual harassment of women at work place a new act The SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013 hasbeen notified on 9th December 2013. Under the said Act every company is required to setup an Internal Complaints Committee to look into complaints relating to sexual harassmentat work place of any women employee.

Company has adopted a policy for prevention of Sexual Harassment of Women at workplaceand has set up Committee for implementation of said policy. During the year Company hasnot received any complaint of harassment.

LISTING WITH STOCK EXCHANGES

The Company confirms that it has paid the Annual Listing Fees for the year 2016-2017 toBSE and NSE where the Company’s Shares are listed.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS:

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

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY:

There have been no material changes and commitments affecting the financial positionof the Company which have occurred between the end of the financial year of the company towhich the financial statements relate and the date of the report.

ACKNOWLEDGEMENT

The Directors would like to thank all shareholders customers bankers suppliers andeverybody else with whose help cooperation and hard work the Company is able to achievethe results. The Directors would also like to place on record their appreciation of thededicated efforts put in by the employees of the Company.

For and On behalf of the Board of Directors
PREMJIBHAI KANANI
Place: Mumbai Chairman
Date: 10th August 2016 DIN : 01567443

ANNEXURE I

Information required under Section 197 of the Companies Act 2013 read with Rule 5(1)of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2016

I. The Ratio of the remuneration of each Director to the median remuneration of theemployees of the Company for the financial year 2015-16 and

II. The percentage increase in remuneration of each Director Managing Director ChiefFinancial Officer and Company Secretary of the Company in the financial year 2015-16.

Name & Designation Remuneration of each Director & KMP for Financial Year 2015–16 (Rs.) % increase / decrease in remuneration in the Financial Year 2015–16 Ratio of remuneration of each Directors to median remuneration of employees
A. Directors
Mr. Devendrakumar Kikani
Mr. Shailesh Patel
Mrs. Ami D. Jariwala
B. Key Managerial Personnel
Mr. Harshil Kanani 501000 NIL 1:7.013
Mr. Premjibhai Kanani 499200 100% 1:6.987

Legends: MD - Managing Director CFO – Chief Financial Officer; WTD- Whole TimeDirector.

Notes:

1. Median remuneration of all the employees of the Company for the financial year2015-16 is 71 447/-.

III. The percentage increase in the median remuneration of employees in the financialyear 2015-16.

Financial Year Financial Year Increase
2015 - 16 (Rs.) 2014 - 15 (Rs.) (%)
Median remuneration of all employees 71447 70877 0.81%

Note: The calculation of % increase in the median remuneration has been done based oncomparable employees.

iv. The number of permanent employees on the rolls of Company.

There were 31 permanent employees on the rolls of Company as on March 31 2016.

v. Average percentile increase already made in the salaries of employees other than themanagerial personnel in the last financial year and its comparison with the percentileincrease in the managerial remuneration and justification thereof and point out if thereare any exceptional circumstances for increase in the managerial remuneration.

Average percentile increase in the salaries of employee other than the MD in theFinancial Year 2015-16 was 40.17% and there is no increase in the salary of the MD.

The average increase of 40.17% in the salaries of employees was in line with the marketprojection the performance of the Company in the financial year 2015-16 the individualperformance of the employees the criticality of the roles they play and skills set theypossess.

iv. Affirmation that the remuneration is as per the Remuneration Policy of the Company

Pursuant to Rule 5(1)(xii) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 it is affirmed that the remuneration paid to the Directors KMPsSenior Management and other employees of the Company is as per the Remuneration Policy ofthe Company.

ANNEXURE II

Information required under Section 197 of the Companies Act 2013 read with Rule5(2)(a) of the Companies (Appointment and Remuneration of Managerial Personnel) AmendmentRules 2016

Name of employees Designation / Nature of Duties Remuneration Received (Rs.) p.a. Qualification Experience in years Age in years Date of commencement of employment Last Employment held % of share- holding
Chirag Shah International Marketing 600000 B.Com 16 36 01.04.2015 Rama Industrial Estate
Harshil Kanani Managing Director 501000 Under Graduate 14 33 28.07.2007 63.626%
Premjibhai Kanani Chairman 499200 Under Graduate 42 58 17.05.2007 Kanani Exports 8.092%
Darshak Pandya CFO 360000 B.Com 11 31 01.11.2007 Star Diam
Tejas Avaiya Vice General Manager 180000 B.Com 04 26 01.10.2015 Shivam Jewel
Atulbhai Gabani Admin Manager 130886 Under Graduate 40 56 01.12.2007 Kanani Exports
Mahendrabhai Tandel Operation Manager 107791 Under Graduate 23 44 15.05.2010 Krishna Diam
Chetan Halpati Manufacturing Manager 91188 Under Graduate 15 35 01.02.2014 Gopal Gems
Indrajit Raj Quality Manager 88144 Under Graduate 16 38 01.06.2009 Pavan Gems
Bhalani Rajendra R Asst. Manager 87134 Under Graduate 34 51 01.05.2011 Sagar Diamond

The above employees are related to the Directors of the Company :

Names of Employees Names of employees who are relatives of any Director
Chirag Shah No Relation with any Director
Harshil Kanani Premjibhai Kanani (Father)
Premjibhai Kanani Harshil Kanani (Son)
Darshak Pandya No Relation with any Director
Tejas Avaiya No Relation with any Director
Atulbhai Gabani No Relation with any Director
Mahendrabhai Tandel No Relation with any Director
Chetan Halpati No Relation with any Director
Indrajit Raj No Relation with any Director
Bhalani Rajendra R No Relation with any Director

ANNEXURE IV

FORM AOC-I

Statement containing salient features of the financial statement ofsubsidiaries/associate companies/joint ventures

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 ofCompanies (Accounts) Rules 2014) Part "A": Subsidiaries (Information in respectof each subsidiary to be presented with amounts in )

Sl. No. 1.
Name of the subsidiary KIL International Limited.
Reporting period for the subsidiary concerned if different from the holding company’s reporting period. March 31 2016
Reporting currency and Exchange rate as on the last date of the relevant financial year in the case of foreign subsidiaries. US$ to INR- 66.25
Share capital 273548387
Reserves & surplus 18431904
Total assets 1123555668
Total Liabilities 1123555668
Investments
Turnover 4111176546
Profit before taxation 16761535
Provision for taxation (1089637)
Profit after taxation 15671898
Proposed Dividend
% of shareholding 100%

 

For and on behalf of the Board of Directors
PREMJIBHAI KANANI
Place: Mumbai CHAIRMAN
Date: August 10 2016 [DIN: 01567443]

Annexure - V

CSR POLICY

(Approved by the Board of Directors on 19th January 2015)

OBJECTIVE

The main objective of CSR policy is to lay down guidelines for the company to make CSRa key business process for sustainable development for the Society. It aims atsupplementing the role of the Government in enhancing welfare measures of the societybased on immediate and long term social and environmental consequences of theiractivities. KIL will act as a good Corporate Citizen subscribing to the principles ofGlobal Compact for implementation.

AREAS TO BE COVERED

The poor and needy Section of the Society living in and around the factory vicinity atdifferent parts of India would normally be covered. The CSR Program will also cover thepromoting education including education and employment enhancing vocation skills.

For carrying out CSR activities 80% of the budgeted amount should be spent within theradius of 50 Km of the Company’s factory and 20% of the budget would be spent on CSRactivities within the other part of the State or Country.

SCOPE

i. Education;

ii. Water Supply including drinking water;

iii. Health care by providing Indoor medical facilities and medicines;

iv. Environment;

v. Social Empowerment;

vi. Infrastructure for Village Electricity/Solar Light/Wind Mill etc. Recurringexpenditure should be borne by the beneficiaries;

vii. Sports and culture.

viii. Generation of employment & setting up Co-operative Society. ix.Infrastructure Support

x. Grant/donation/financial assistance/sponsorship to reputed NGOs of theSociety/locality doing/involve in upliftment of the standard of the society.

xi. Heritage sites in the CSR purview ensuring involvement of employee’srepresentatives in this Project.

xii. Empowerment of women for education/health &self-employment

xiii. Relief of victims and Natural Calamities like Earth Quake Cyclone Draught andFlood situation in any part of the country.

xiv. Disaster Management Activities including those related to amelioration/Mitigation.

xv. Collection of old cloths from the employees and distribution in the nearby villageby utilizing the platform of Mahila Sabha of the Company Club (Executives &Non-executives) and Women in Public Sector.

xvi. Development of smokeless fuel out of coal and also arrangement for distribution ofefficient Chula to the villagers.

xvii. Adoption of village for carrying out the activities like infrastructuraldevelopment e.g. Road water supply electricity and community center etc.

The above list is illustrative and not exhaustive. Audit Committee shall be authorizedto consider CSR activities not falling in this list.

The activities will be specific to the village depending on the need assessed for thepeople. As far as possible efforts will be made to co-ordinate with similar CSR activitiesthat are taken up by the Central or State Government in the areas of KIL.

All activities under the CSR activities should be environment friendly and sociallyacceptable to the local people and Society.