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Cheviot Company Ltd.

BSE: 526817 Sector: Industrials
NSE: N.A. ISIN Code: INE974B01016
BSE 00:00 | 14 Oct 1253.40 -4.75
(-0.38%)
OPEN

1260.35

HIGH

1274.65

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NSE 05:30 | 01 Jan Cheviot Company Ltd
OPEN 1260.35
PREVIOUS CLOSE 1258.15
VOLUME 3873
52-Week high 2055.55
52-Week low 631.00
P/E 9.18
Mkt Cap.(Rs cr) 786
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1260.35
CLOSE 1258.15
VOLUME 3873
52-Week high 2055.55
52-Week low 631.00
P/E 9.18
Mkt Cap.(Rs cr) 786
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cheviot Company Ltd. (CHEVIOTCOMPANY) - Director Report

Company director report

Dear Members

Your directors take pleasure in presenting their report and the auditedfinancial statements on standalone basis for the financial year ended 31st March 2021.

1. FINANCIAL SUMMARY OR HIGHLIGHTS

For the year ended

For the year ended

31st March 2021

31st March 2020

Revenue from operations

39575.57

45804.59

Operating profit after depreciation and amortisation

4747.05

5213.09

Add: Other income

4554.73

971.61

Profit before tax

9301.78

6184.70

Tax expense

1729.47

1372.58

Profit for the year

7572.31

4812.12

2. DIVIDEND

The Board of Directors have recommended a special dividend of Rs. 175/-per ordinary share on 6266875 ordinary shares of face value of Rs. 10/- each (1750%)amounting to Rs. 10967.03 for the year ended 31st March 2021 (P.Y. Rs. 48/- per ordinaryshare was declared as special interim dividend). The Board of Directors took a liberalview while recommending dividend for the year ended 31st March 2021 taking into accountthe surplus cash available with the Company and also considering the challenging timescaused by COVID-19 pandemic.

3. TRANSFER TO RESERVE

Your directors do not propose to transfer any amount to the reservesout of current year profits.

4. OPERATIONS AND STATE OF COMPANY'S AFFAIRS

There has been no change in the nature of business of the Companyduring the year under review. Revenue from operations profitability and earnings pershare show under noted position during the year under review as compared to previous year:

For the year ended

For the year ended

31st March 2021

31st March 2020

Revenue from operations

39575.57

45804.59

Export sales (C.I.F. value)

16442.72

16152.23

Operating profit

4747.05

5213.09

Other income

4554.73

971.61

Profit before tax

9301.78

6184.70

Tax expense

1729.47

1372.58

Profit after

7572.31

4812.12

Earnings per share (EPS) of face value of Rs. 10/- (In Rs.)

118.43

74.41

During the year under review the operations were affected due to therestrictions imposed by the Government to prevent the spread of novel coronavirus(COVID-19) disruption caused by the cyclone (AMPHAN) and period that remained undersuspension of work for violation of safety protocols by certain group of workers. Therewas regular demand in domestic sector particularly from the Government. The export marketwas buoyant and we got good support from overseas buyers. Inspite of loss of productionwe were able to maintain our exports in value. Overcoming these challenges your Companyis pleased to report a satisfactory performance from business operations.

Other income largely comprises of gains on investments sold or measuredat fair value through profit or loss as per IND

AS 109. The unprecedented rise in the capital market scenario resultedin an unusual increase in other income for the year. Such ad-hoc increase in other incomemay not be sustainable in future years. This other income pushed the bottom line to arecord profit for the year ended 31st March 2021.

5. MANAGEMENT DISCUSSION AND ANALYSIS

a) Industry structure and developments

The current year has witnessed an acute shortage of raw jute. This wasan impact of climatic conditions. The prices have skyrocketed to highest ever levels andshown a steep rise of 50% within one year. More disturbingly there is a physical shortageof raw jute and there is not enough jute for the Industry to operate at full capacity tillnew season jute arrives in July/August 2021.

Production is likely to be affected till such time as new jute arrives.

High raw jute prices have been passed on to consumers and in manyapplications the levels are not economical for end users. There is a risk of long termloss of certain markets due to this price appreciation. This risk is more in ourdiversified export markets.

The Company has recovered significantly after the firstwave of COVID-19in 2020 and could recover the earlier losses due to lockdown. The second wave is nowrising and to contain the second wave Jute Industry has been allowed to operate only at30% capacity by the Government of West Bengal in terms of their order dated 7th May 2021.The situation reported here is on the date of signing this report. The road ahead in thisregard is uncertain. However having combatted such scenario during the first wave wehope to be successful again. Your directors stand in solidarity with the nation in suchchallenging times.

b) Opportunities and threats

Opportunities

Greater awareness among the people about the demerits of using plasticis leading to a higher demand for natural bio-degradable jute goods.

The diversified use of jute in floor coverings jute geo-textilesshopping bags and other industrial purposes is giving a boost in the demand for jutegoods.

Threats

COVID 19 is a major threat to the Jute Industry and a matter of concernas the operations could be affected anytime either at our end or our customers.

Loss of markets in exports due to high raw jute prices.

c) Segment-wise or product-wise performance

The Company is engaged in a single business segment i e. manufacturingand sale of jute goods. Hence disclosure requirement as required by IND AS - 108 are notapplicable in respect of business segment. However the geographical segments consideredfor disclosure are as under:

For the year ended 31st March 2021

For the year ended 31st March 2020

Particulars

Within India

Overseas

Total

Within India

Overseas

Total

Revenue

22631.95

16442.72

39074.67

28472.67

16152.23

44624.90

Non-current assets other than

25232.96

-

25232.96

24938.89

-

24938.89

financial instruments *

* Non-current assets other than financial instruments include propertyplant and equipment capital work-in-progress right of use assets investment propertyother intangible assets non-current tax assets (net) and other non-current assets.

d) Outlook

We are happy to inform that the Company has been able to withstand thelosses of COVID 19 shut down during first wave and shown encouraging results. We have tonow encounter the second wave and no one can predict its outcome and impact. Raw juteshortage is also a challenge and we can only hope for a bumper crop in current season. Weare already operating at reduced capacity due to this situation. Outlook for the comingyear is challenging.

e) Risks and concerns

The major areas of risk and concern for the Jute Industry are :

• Availability of Raw Jute: This is a major concern in the currentyear. It will be difficult to even operate at proper capacity till new jute arrives inJuly/August 2021. The jute crop can highly fluctuate depending on area under cultivationand weather conditions. High jute prices are affecting the consumption of our endconsumers and is a source of concern.

• Lack of modernisation: Industry needs to modernise and developnew technology machines through Research and Development so as to manufacture costcompetitive jute products for future growth.

• Revenue concentration: The jute industry is mostly dependent ongovernment procurement orders for packaging of food grains. High jute prices are makingthe price differences with alternatives higher.

f) Internal control systems and their adequacy

The Board of Directors have designed and implemented various policiesand procedures for internal financial to ensure orderly and efficient recording andgeneration of reliable financial and operational information safeguarding of assets fromunauthorised use or losses prevention and detection of frauds and errors accuracy andcompleteness of the accounting records timely preparation of reliable financialinformation and ensuring compliance with corporate policies and applicable laws. The auditcommittee evaluates the internal control system periodically. During the year underreview no fraud was detected by the auditors.

The Company has in all material respects an adequate internalfinancial controls system over financial reporting and with reference to such internalfinancial statements were operating effectively as at 31st March 2021 based onthe essential components of internal controls over financial reporting criteriaestablished by the Company.

g) Discussion on financial performance with respect to operationalperformance

The following are the significant areas of financial performance:

For the year ended

For the year ended

% Increase /

Particulars

31st March 2021

31st March 2020

(Decrease)

Revenue from operations

39575.57

45804.59

(13.60)%

CIF value of Export Sales

16442.72

16152.23

1.80%

Finance cost

43.95

36.70

19.75%

Inventories

8215.34

8160.03

0.68%

Fixed assets inclusive of capital advances

782.40

1431.07

(45.33)%

Revenue from operations have decreased mainly on account of lowercapacity utilisation due to restrictions imposed by the Government from time to time onJute Mill operations during the pandemic disturbances caused by the cyclone (AMPHAN) andperiod that remained under suspension of work for violation of safety protocols by certaingroup of workers. The expenditure on fixed assets were incurred on upgradation and ongoingfactory building construction. The overall performance remained stable despite thechallenges of the pandemic year.

h) Material developments in human resource / industrial relationsfront including number of people employed

Industrial relations remained cordial during the year under review.There is shortage of new entrants in the Jute Industry. The Company has been operating itsfacilities in accordance with the advisories issued from time to time by the Central andState Governments including the prescribed standard operating procedures for hygiene andsafety to follow social distancing norms. Facility to work from home and rotational dutywere implemented wherever necessary to protect the health and safety of the employees.

The Company continues to impart in-house training to new entrants tobring about all round improvement in their working knowledge and skills. The Company alsocontinues its various staff welfare schemes. As on 31st March 2021 there were 4158employees on the roll of the Company.

i) Details of significant changes (i.e. change of 25% or more ascompared to the immediately previous financial year) in key financial ratios along withdetailed explanations thereof

For the year ended

For the year ended

Particulars

31st March 2021

31st March 2020

% Change

Interest Coverage Ratio

212.64

169.52

25.44%

Net Profit Margin

19.13%

10.51%

82.13%

As explained earlier in the report there had been an unprecedentedrise in the capital market scenario resulting to an unusual increase in other income forthe year on account of recognition of gains on investments sold or measured at fair valuethrough profit or loss as per IND AS 109. This other income pushed the bottom line toachieve the highest ever net profit of the Company. The ratios calculated on this all timehigh net profit shows significant change compared to previous year. (i.e. change of25% or more as compared to the immediately Except the above there has been no significantprevious financial year) in any other key financial ratios viz. debtors turnoverinventories turnover current ratio debt-equity ratio and operating profit margin.

j) Details of any change in Return on Net Worth as compared to theimmediately previous financial year along with a detailed explanation thereof

For the year ended

For the year ended

Particulars

31st March 2021

31st March 2020

Return on Net Worth

15.65%

10.62%

Return on Net Worth is calculated by dividing profit for the year byaverage net worth during the year. Return on Net Worth has increased due to higher netprofit after tax as stated in this report. k) Cautionary statement

Statement made in this section of the report is based on the prevailingsituation and future expectation are anticipated based on the prevailing market situation.Actual results may differ from those expressed or implied in the statements depending onthe circumstances.

6. SHARE CAPITAL

The Company has one class of issued share i.e. ordinary share of facevalue of Rs. 10/- each.

During the year under review your Company completed Buy-Back of200000 fully paid up ordinary shares of Rs. 10/- each (representing 3.09% of the totalnumber of Ordinary Share capital of the Company as at 31st March 2020) at the Buy-Backprice of ` 900/- per ordinary share for an aggregate consideration of Rs. 1800.00 from allthe eligible members of the Company holding shares as on the Record Date (18th September2020) on a proportionate basis through the "Tender Offer" route in accordance with the provisions of Section 68 of the Companies Act 2013read with Rules made thereunder and the provisions of the Securities and Exchange Board ofIndia (Buy-Back of Securities) Regulations 2018 as amended. The 200000 ordinary sharesbought back were extinguished in November 2020. Accordingly as at 31st March 2021 theissued subscribed and fully paid up ordinary share capital of the Company stood at `626.69 consisting of 6266875 fully paid up ordinary shares of Rs. 10/- each. The sharesof Cheviot Company Limited are listed on BSE Limited. The Company has paid the AnnualListing Fees for the financial year 2021 22 to BSE Limited.

7. CORPORATE GOVERNANCE

In terms of Regulation 34(3) of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 a separatereport on corporate governance together with a certificate from M/s SJAB & Associatesa firm of practising company secretaries confirming compliance thereof is given inAnnexure-Iforming part of this report.

8. ANNUAL RETURN

The Annual Return of the Company is available on the Company's website:https://www.groupcheviot.net/investors-jute/ annual-reports-jute/.

9. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

Particulars of investments made by the Company have been disclosed inNote 9 and Note 15 to the financial statements for the financial year ended 31st March2021. The Company has not given any loan or guarantee during the year.

10. DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Board of Directors have developed a risk management policy for theCompany identifying therein the elements of risk and concern that may threaten theexistence of the Company. The senior management continuously evaluates the risk elementsthrough a systematic approach to mitigate or reduce the impact of risk elements. Theelements of risks and concerns are periodically reviewed by the Board of Directors.Discussion on risks and concerns have been made in this report under the head management discussion and analysis'.

11. CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the year ended 31st March 2021 your Company has spent ` 127.58on various CSR activities. The annual report on CSR activities in terms of Rule 8 ofCompanies (Corporate Social Responsibility Policy) Rules 2014 is provided in Annexure-IIforming part of this report.

During the year under review our CSR programs were oriented towardvarious activities to support initiatives for setting up medical facilities for thetreatment of COVID 19 patients and to support our frontline healthcare workers involved intheir treatment. The Corporate Social Responsibility Policy of the Company as adopted bythe Board of Directors is available on Company's website(https://www.groupcheviot.net/investors-jute/corporate-governance-jute/). The compositionof CSR

Committee is disclosed in the report on corporate governance formingpart of this report.

12. ESTABLISHMENT OF VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has formulated a Vigil Mechanism / Whistle Blower Policy interms of Section 177 of the Companies Act 2013 and as per Regulation 22 of the Securitiesand Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 for the employees and directors to report their grievance(s) / concern(s) aboutinstances of unethical behaviour actual or suspected fraud or violation of Company's code of conduct to the VigilanceOfficer or the Chairman of the audit committee. During the year under review no complaintwas reported. The whistle blower policy is available on the Company's website(https://www.groupcheviot.net/investors-jute/corporate-governance-jute/).

13. ANNUAL PERFORMANCE EVALUATION

The Board of Directors evaluated its own performance its Committeesand the performance of independent directors. The nomination and remuneration committeecarried out annual performance evaluation of individual directors. The overall performanceof the Board of Directors its committees and individual directors was found adequate andeffective in terms of the criteria set out by the nomination and remuneration committee.The evaluation of the Board of Directors was based on criteria such as appropriateness ofBoard composition and structure decisions passed by the Board of Directors awareness onIndustry operations compliance with applicable laws succession planning strategicplanning implementation of guidelines or strategies decided by the Board of Directorsetc. The evaluation of the Committees was based on composition functioning competenciesof the members frequency of meetings procedures monitoring role advisory role timelyreporting to Board of Directors etc. The evaluation of directors was based on criteriasuch as preparedness for board meetings attendance judgements contribution to riskmanagement adherence to Company's code of conduct and corporate governance pro-activeness in highlighting areasof concern sharing of knowledge and business information disclosure of interest andrelated parties in timely manner etc.

14. COMPANY'S POLICY ON DIRECTORS' APPOINTMENT ANDREMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS POSITIVE ATTRIBUTESINDEPENDENCE OF A DIRECTOR AND OTHER MATTERS

In compliance with the requirements of the Companies Act 2013 and theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 the nomination and remuneration committee (NRC) follow the laid downcriteria for identification of persons who are eligible to hold the office of directorkey managerial personnel and senior management personnel of the Company includingdetermination of qualifications independence of the person and their remuneration andother matters provided under Section 178 of the Companies Act 2013. The NRC has affirmedthat the remuneration paid to directors key managerial personnel and senior managementpersonnel are as per the remuneration policy of the Company. The remuneration policyincluding criteria for determining qualifications positive attributes and independence ofa director is available at the web link:(https://www.groupcheviot.net/investors-jute/corporate-governance-jute/).

15. NUMBER OF MEETINGS OF THE BOARD

The Board of Directors met 5 (five) times during the year under review.More details are available in the report on corporate governance.

16. COMPOSITION OF AUDIT COMMITTEE

The Board of Directors have constituted the audit committee with threedirectors as members all of whom are financially literate. Two-thirds of the members ofaudit committee are independent directors. More details on the audit committee are givenin the report on corporate governance.

17. DIRECTORS' RESPONSIBILITY STATEMENT

In terms of Section 134(5) of the Companies Act 2013 it is herebystated to the best of our knowledge and belief that:

(a) in the preparation of the annual accounts the applicableaccounting standards had been followed along with proper explanation relating to materialdepartures;

(b) the directors had selected such accounting policies and appliedthem consistently and made judgements and estimates that are reasonable and prudent so asto give a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the profit of the Company for that period;

(c) the directors had taken proper and sufficientcare for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act 2013 for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concernbasis;

(e) the directors had laid down internal financial controls to befollowed by the Company and that such internal financial controls are adequate and wereoperating effectively;

(f) the directors had devised proper systems to ensure compliance withthe provisions of all applicable laws and that such systems were adequate and operatingeffectively.

18. BUSINESS RESPONSIBILITY REPORT

Pursuant to Regulation 34(2)(f) of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations 2015 BusinessResponsibility Report of the Company for the financial year ended 31st March 2021describing the initiatives taken by the Company from an environmental social andgovernance perspective in the prescribed format is enclosed as Annexure III tothis report.

19. PARTICULARS OF EMPLOYEES

Information required pursuant to Section 197(12) of the Companies Act2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 has been provided in Annexure-IV forming part of thisreport.

The details of employees prescribed under Rule 5(2) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of thisreport. However with regard to the provisions of the second proviso to Section 136(1) ofthe Companies Act 2013 and second proviso to Rule 5 of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Annual Report excluding the saidinformation is being sent to the members of the Company. The said information is availablefor inspection and any member interested in obtaining such information may write to thecompany secretary and the same will be furnished on request.

20. MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITIONOF THE COMPANY WHICH OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THE FINANCIALSTATEMENTS RELATE AND THE DATE OF THIS REPORT

The second wave of COVID-19 has hit India hard and is yet to reach itspeak. Our manufacturing units are running at reduced production capacity as per Governmentof West Bengal Order dated 7th May 2021 imposing restriction on the operations in JuteMills to 30% of total strength of each shift. At present there is no visibility as to howlong such situation will persist. We cannot predict the impact this will have on our ownoperations or on our business partners at this stage.

21. CREDIT RATING

Crisil Limited has assigned long-term rating of A+/stable andshort-term rating of A1+ to the Company for the working capital and term loan facilitiesavailed by the Company. There has been no revision in the credit rating during the yearunder review.

22. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

The Board of Directors have formulated a policy on dealing with relatedparty transactions which has been disclosed on the website of the Company. Alltransactions entered into with related parties as defined under the Companies Act 2013read with Regulation 23 of the Securities and Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations 2015 during the year were in the ordinarycourse of business and at arm's-length price. There was no by the Company with its promoters directors or keymanagerial materially significant personnel which may have potential conflict with theinterest of the Company at large or which warrants the approval of the members.Accordingly the disclosure of related party transactions as required under Section134(3)(h) of the Companies Act 2013 in Form AOC-2 is not applicable to the Company for FY2020-21 and hence does not form part of this report.

Details of related party transactions entered into by the Company interms of IND AS-24 are disclosed in note 54 to the financial statements for the financialyear ended 31st March 2021. All related party transactions were placed before the auditcommittee for approval on a quarterly basis and prior omnibus approval of the auditcommittee was obtained for the transactions which were of a repetitive nature.

23. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGEEARNINGS AND OUTGO

The information on conservation of energy technology absorptionforeign exchange earnings and outgo as prescribed under Section 134(3)(m) of theCompanies Act 2013 read with Rule 8 of the Companies (Accounts) Rules 2014 are providedin Annexure-V forming part of this report.

24. DIRECTORS

Mr. Nawal Kishore Kejriwal (DIN 00060314) (aged 77 years) retired fromthe Board of Directors on completion of his term of office on 31st May 2020. Mr. UtkarshKanoria (holding DIN 06950837) shall retire by rotation at the ensuing annual generalmeeting and being eligible offers himself for re-appointment. The information about thedirector seeking re-appointment as required by Regulation 36(3) of the Securities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 and Secretarial Standard on General Meetings have been given in the notice conveningthe ensuing annual general meeting.

All the independent directors have declared that they meet the criteriaof independence laid down in Section 149(6) of the Companies Act 2013 read withRegulation 16(1)(b) and Regulation 25 of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015. In the opinion of theBoard of Directors there has been no change in the circumstances which may affect theirstatus as independent directors of the Company and the Board of Directors are satisfied ofthe integrity expertise and experience of all the independent directors on the Board ofDirectors. All the independent directors have registered themselves on IndependentDirectors Databank.

25. KEY MANAGERIAL PERSONNEL

During the year under review Mr. Nawal Kishore Kejriwal (DIN 00060314)(aged 77 years) whole time director of the Company retired from the Board of Directorson completion of his term of office on 31st May 2020. All the other Key ManagerialPersonnel continue to hold their offices.

26. SUBSIDIARIES JOINT VENTURES AND ASSOCIATES

There is no company which has become or ceased to be the Company's subsidiary joint venture or associatecompany during the year. The Company does not have any subsidiary joint venture orassociate company as on 31st March 2021.

27. PUBLIC DEPOSITS

The Company has not accepted deposits from public within the meaning ofSection 73 of the Companies Act 2013 read with Rules framed thereunder. Further noamount on account of principal or interest on deposits from public was outstanding as onthe date of the balance sheet.

28. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTSOR TRIBUNALS

No significant and/or material order was passed by the regulators orcourts or tribunals which impact the going concern status and Company's operations in future. Details of contingent liabilities andcommitments (to the extent not provided for) are disclosed in Note 46 to the financialstatements for the financial year ended 31st March 2021.

29. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE

The Company has complied with provisions relating to the constitutionof Internal Complaint Committee as required to be formed under Section 4 of the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013 andrules made thereunder. The Company has adopted a policy in line with the provisions of theSexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013and the Rules made thereunder. During the year under review no complaint of sexualharassment has been received by the Internal Complaint Committee. More details areavailable in the report on corporate governance.

30. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the provisions of Section 124 of the Companies Act 2013read with the Investor Education and Protection Fund Authority (Accounting AuditTransfer and Refund) Rules 2016 (the Rules) all unpaid or unclaimed dividends arerequired to be transferred by the Company to the IEPF Authority established by theGovernment of India after the completion of seven years. Further according to the Rulesthe shares on which dividend has not been paid or claimed by the shareholders for sevenconsecutive years or more shall be transferred to the demat account of the IEPF Authority.Accordingly the Company had transferred Rs. 12.34 lying in the unpaid dividend accountfor the financial year 2012-13 to the bank account of IEPF Authority on 28th September2020. Further 1897 ordinary shares were transferred to the IEPF

Authority during the year. The details of unpaid dividend and sharestransferred to the IEPF Authority are available at the following web link:(https://www.groupcheviot.net/investors-jute/unclaimed-dividends-jute/).

31. STATUTORY AUDITORS

M/s Singhi & Co. Chartered Accountants (ICAI Registration No.302049E) was appointed as statutory auditors of the Company at the annual general meetingheld on 25th August 2017 for a term of five consecutive years. There has been noqualification reservation or adverse remark in the Independent Auditors' Report for the financial year ended31st March 2021. The statutory auditors have not reported any incident of fraud duringthe year under review in terms of Section 143(12) of the Companies Act 2013 necessitatingdisclosure in the Board's Report.

32. COST AUDIT

The Company is required to maintain cost records as specified by theCentral Government under sub-section (1) of Section 148 of the Companies Act 2013 andaccordingly such accounts and records are made and maintained by the Company. Pursuant toSection 148 of the Companies Act 2013 read with Rules framed thereunder the Board ofDirectors have re-appointed M/s D. Radhakrishnan & Co. Cost Accountants(Registration No. 000018) as cost auditor for the financial year 2021-22 to conduct theaudit of the cost accounting records maintained by the Company. The resolution included atItem No. 5 of the notice convening the annual general meeting seeks members' ratification to the to the costauditor. M/s D. Radhakrishnan & Co. have long experience in the field of cost auditand have been conducting the audit of the cost records of the Company for the past severalyears. The Cost Audit Report of the Company for the financial year ended 31st March 2020was filed by the Company in XBRL mode on 6th November 2020.

33. SECRETARIAL AUDIT

The Board of Directors have appointed M/s MR & Associates a firmof practising company secretaries (CoP 2551) to carry out the Secretarial Audit under theprovisions of Section 204 of the Companies Act 2013 read with Regulation 24A of theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015. The report year 2020-21 does not contain anyfromthesecretarialauditorinFormMR-3forthefinancial qualification reservation oradverse remarks. The secretarial audit report is enclosed as Annexure VI to thisreport. During the year under review the Secretarial Auditor did not report any matterunder Section 143(12) of the Companies Act 2013 necessitating disclosure in the Board'sReport.

Further the Company has filed the Annual Secretarial Compliance Reportfor the year ended 31st March 2021 issued by the secretarial auditor with BSE Limited on4th May 2021.

34. SECRETARIAL STANDARDS

The directors have devised proper systems to ensure compliance with theprovisions of the applicable Secretarial Standards issued by The Institute of CompanySecretaries of India and such systems are adequate and operating effectively.

35. ACKNOWLEDGEMENTS

Your directors place on record their appreciation for the whole-heartedsupport and co-operation received from the Government vendors financial institutionsbanks regulatory authorities customers and all other stakeholders and look forward totheir continued support in the future. The dedicated services rendered by employees at alllevels also abetted to overcome the challenges faced during the pandemic.

For and on behalf of the Board

CHEVIOT COMPANY LIMITED

Harsh Vardhan Kanoria

Chairman and Managing Director

Kolkata 15th May 2021

Chief Executive Officer

DIN : 00060259

.