The Members of
M/s. KAVVERI TELECOM PRODUCTS LIMITED
The Directors have pleasure in presenting the 22nd Annual Report of theCompany together with the audited accounts for the year ended 31st March 2017.
FINANCIAL RESULTS - CONSOLIDATED
| || ||(in Lakhs) |
| ||Year ended 31.03.2017 ||Year ended 31.03.2016 |
|Total Income from operations ||2804.04 ||4444.46 |
|Total Expenditure including depreciation ||4271.59 ||5466.21 |
|Interest& Bank Charges ||1968.04 ||2491.44 |
|Depreciation ||1832.10 ||1955.16 |
|Tax Exp. &Provision for Differed |
|8.74 ||13.03 |
|Net Loss ||(3151.73) ||(3526.21) |
THE COMPANY'S PRODUCTS / SERVICES
Kavveri Telecom Products Limited is a leading telecom wireless subsystem productsmanufacturer providing world-class hardware products and solutions for the TelecomDefense & Aerospace segments. Founded in 1991 Kavveri Telecom designs developstests and manufactures a diverse range of wireless Telecom products from concept todeployment. With over 500 R&D man-years of experience and over 20 years of high pacedgrowth Kavveri Telecom is uniquely positioned to offer an array of world-class productsand solutions to meet product and sub-system requirements of wireless Telecom equipmentmanufacturers Carriers Defence and Space clients. The Company enjoys the status of beingthe largest Indian transnational manufacturer of Antennas
& RF products with overseas offices distributed R&D and foreign acquisitionsresulting in market access spanning four continents and is committed to meet theexpectations of its share holding community clients business partners and employees.
Your company has registered a consolidated total income of Rs. 2804.04 lakhs for2016-17 as compared to Rs. 4444.46 lakhs for 2015-16 and the company posted a net loss ofRs. 3151.73 lakhs for 2016-17 as compared to Rs. 3526.21 lakhs for 2015-16.
The Directors regret their inability to recommend dividend for the year under reviewdue to insufficient profit.
BUSINESS RISK MANAGEMENT
The Company like any other enterprise is exposed to business risk which can beinternal risks as well as external risks. The threats to the segments in which the companyoperates are volatility in Exchange rate &material Prices. The company is concernedabout the vide Fluctuations in prices globally and locally and increase in foreignexchange value.
The Company has not accepted deposits covered under Chapter V of the Companies Act2013 and accordingly the disclosure requirements stipulated under the said Chapter arenot applicable.
PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS
During the year under review the company has not given any loans Guarantees andInvestments covered under the provisions of Section 186 of the Companies Act 2013
CONTRACTS AND ARRANGEMEMENTS WITH RELATED PARTIES
Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of theCompanies(Accounts) Rules 2014 the details of related party transactions are mentionedelsewhere in this Annual report.
All contracts / arrangements / transactions entered by the Company during the financialyear with related parties were in the ordinary course of business and on an arm's lengthbasis. During the year the Company had not entered into any contract / arrangement /transaction with related parties which could be considered material in accordance with thepolicy of the Company on materiality of related party transactions.
The Policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website.
Your Directors draw attention of the members to Note to the financial statement whichsets out related party disclosures.
The company has following subsidiaries:
M/s Kavveri Telecom Infrastructure Limited India M/s Eaicom India Private LimitedIndia M/s Kavveri Technologies Inc. Canada M/s Kavveri Telecom Espana Spain M/s KavveriTechnologies Americas Inc
Step down subsidiaries: (i.e. subsidiaries of M/s Kavveri Technologies Inc.)
M/s Til-Tek Antennae Inc M/s Spotwave Wireless Ltd
M/s DCI Digital Communications Inc. M/s Kavveri Realty 5 Inc. M/s Trackcom SystemsInc. M/s. Quality communication systems Inc M/s. New England Communication systems Inc
Pursuant to Ministry of Corporate Affair's Circular No. 2/2011 dated 08.02.2011 sincethe company is presenting consolidated financial statement of Holding and Subsidiarycompanies the individual financial statements of the subsidiaries are not presentedseparately.
The consolidated financial statement has been prepared in strict compliance withapplicable Accounting Standards and where applicable Requirements as prescribed by theSecurity and Exchange Board of India. The company do undertake that annual report thatannual accounts of the subsidiary companies and the related detailed information shall bemade available to shareholders of the holding and subsidiary companies seeking suchinformation at any point of time. Annual accounts of the subsidiary companies are alsokept for inspection by any shareholders in the head office (i.e. Registered Office) ofthe company and of the subsidiary companies.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexedherewith elsewhere in the Annual Report.
DEMAT SUSPENSE ACCOUNT UNCLAIMED SHARES
As on 31st March 2017 there were no Equity Shares of Shareholders werelying in the Escrow Account due to non-availability of the correct particulars.
Your Directors are happy to report that your Company has duly constituted the Boardwith the optimum combination of executive and non-executive Directors and has constitutedthe Committees of the Board to comply with the Corporate Governance requirements as perthe Companies Act 2013 and Provisions of SEBI (LODR) Regulations 2015. A separate sectionon Corporate Governance together with a certificate from the Statutory Auditor'sconfirming compliance is set out in the Annexure forming part of this report.