Your Directors have pleasure in presenting the 40th Annual Report togetherwith the Audited Financial statements for the year ended 31st March 2019.
The Financial Results for the year ended 31st March 2019 are summarizedbelow:
| || ||(Rs. In Lakhs) |
|Particulars ||2018-19 ||2017-18 |
|Income (Sales and other Income) ||12344.71 ||17280.10 |
|Profit before Depreciation Interest & Taxes ||1438.11 ||1950.60 |
|Depreciation ||242.26 ||218.11 |
|Interest ||565.08 ||250.44 |
|doubtful debts ||260.57 ||0.00 |
|Taxation ||97.33 ||534.68 |
|Deferred Taxation ||(242.87) ||(100.61) |
|TOTAL ||922.37 ||902.62 |
|Profit after Tax ||515.74 ||1047.98 |
|Other Comprehensive Income ||(92.38) ||44.94 |
|Total Comprehensive Income ||423.36 ||1092.92 |
|Share Capital (No. of shares) ||7773858 ||7773858 |
|EPS (Rs.) ||6.63 ||13.48 |
Your Directors are pleased to recommend for your consideration a Dividend of Rs. 3.00per equity share for the year ended 31.03.2019 which aggregates to Rs. 233.22 lacsexcluding dividend distribution Tax. Your directors feel that it shall be appropriate torecommend dividend at Rs. 3.00 per equity share at par with the dividend declared in thepast two years despite the fact that the financial performance of the company suffered asetback due to sub-dued overall performance in the year under review on account ofmultifarious factors.
TRANSFER OF PROFITS TO RESERVES.
The company has decided not to transfer any sum to reserves from out of the currentyear's profits. In the preceding year as well no sum was transferred to reserves from outof the profits of the preceding year.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of section 124 and 125 of the Companies Act 2013 and interms of Investor Education and Protection Fund Authority (Accounting Audit Transfer andRefund) Rules 2016 all shares on which dividend has not been claimed for sevenconsecutive years or more shall be transferred to the Investor Education and ProtectionFund (IEPF) Authority.
Accordingly the company has transferred 28411 equity shares to the Investor Educationand Protection Fund (IEPF) Authority during the year ended 31st March 2019. Toclaim the equity shares and dividend which were transferred to the IEPF the shareholdersare requested to visit the website of the company www.kakativacements.com to know theprocedure to claim the shares and dividend transferred to IEPF.
According to Section 205C of the Companies Act 2013 read with Investor Education andProtection Fund (Awareness and Protection of Investors) Rules 2001 the company hastransferred unclaimed dividend amounting to Rs. 81054 to the Investor Education andProtection Fund established by the Central government during the year under review. Thesaid transfer is in respect of the unclaimed dividends for the financial year 2010-2011.
MATERIAL CHANGES AND COMMITMENTS
In terms of Section 134 (3) (l) of the Companies Act 2013 there are no materialchanges and commitments affecting the financial position of the company which haveoccurred between the end of the financial year of the company to which the financialstatements relate and the date of the Report.
The company has not accepted any deposits during the year under review and there wereno outstanding deposits as at the end of the year.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS / COURTS /TRIBUNALS
There are no significant and material orders passed by the Regulators or courts ortribunals in the year under review impacting the going concern status and company'soperations in future.
RE-APPOINTMENT OF INDEPENDENT DIRECTORS
The members at the Annual General Meeting of the company held on 14th July2014 approved the appointment of Shri K Venkat Rao (DIN 06566627) Shri B V Subbaiah (DIN01147062) and Shri T R C Bose (DIN 00160630) as Independent Directors of the company for aperiod of five years with effect from 14th July 2014 (first term). Thedirectors will complete their present term on 13th July 2019.
In terms of SEBI (LODR) Amendment Regulations dated 9th May 2018 effectivefrom 1st April 2019 consent of the members by way of special Resolution isrequired to be obtained for continuation of a non-executive director beyond the age of 75years.
The Company therefore proposes to re-appoint Shri B V Subbaiah and Shri T R C Bose asNon-Executive Independent Directors for a second term for a period of five years effectivefrom 1st April 2019 till 31st March 2024 to provide continuity inoffice and also in compliance with Regulation 17(1A) of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015. Shri B V Subbaiah and Shri T R C Bose havecrossed the age of 75 years.
The company also proposes to re-appoint Shri K Venkat Rao (DIN 06566627) asNon-Executive Independent Director for a second term for a period of five years effectivefrom 14th July 2019 till 13th July 2024.
The company opines that all the three independent directors have contributedsignificantly to the growth and development of the company and therefore the companythought it appropriate and prudent to re-appoint the independent directors for a furtherperiod of five years to continue to have the advice and counsel. The details regarding theproposal has been set out in the notice in Item No. 5 6 and 7. The Members are requestedto accord their approval and pass the special Resolutions in this regard.
DIRECTORS RETIRING BY ROTATION
In accordance with the provisions of the Companies Act 2013 Smt. M VaralakshmiDirector retires by rotation at the ensuing Annual General Meeting and being eligibleoffers herself for re-appointment.
The brief profile of Smt. M Varalakshmi director who is seeking re-appointment at theensuing Annual General Meeting is presented elsewhere in this Annual Report.
As on 31st March 2019 7414768 shares were dematerialised with NationalSecurities Depository Limited and Central Depository Services Limited which constitutes94.64% of the shares of the company. Members may please note that it is a mandatoryrequirement that the company shall endeavour to ensure that at least 50% of theshareholding of the public shareholders is in the dematerialised mode.
The company therefore once again requests such of the public shareholders who have notyet dematerialised their shares to initiate immediate steps to complete the process ofdematerialisation.
PERFORMANCE OF THE YEAR UNDER REVIEW
During the year under review the Cement Division has produced 200779 MT as against164207 MT in the year ago period thereby registering an increase of 22.27%.
Members are aware that the cement plant was shutdown during 2017-2018 and that thecompany thereafter complied with the conditions stipulated by Central pollution Board(CPCB) and secured revocation order from CPCB in April 2018. The power connection wasrestored and thereupon the operations were restarted.
The Cement Division has clocked a turnover of Rs. 65.28 crores as against theturnover of Rs. 62.54 crores recorded in the previous year and this works out to arise of 4.38%.
The Cement Division has earned Profit Before Tax (PBT) of Rs. 7.07 crores in the yearunder review as against Rs. 4.81 crores earned in the previous year. This works out to anincrease of 46.98% over the previous year.
The Sugar cane crushed in the sugar division in the year under review is 166932 MT asagainst 149121 MT in the previous year there by recording an increase of 11.94%. Thecompany could not procure the mandals and villages of its choice even in the year underreview and the cane development has therefore not witnessed significant improvement. Theinadequate availability of water sources has also impacted the cane production and byextension even the production of sugar to a significant level.
The recent Government Regulation restricting the sale of the sugar has also impactedthe quantum of sales during the year under review.
Due to the cumulative factors cited above the sugar division has clocked a turnover ofRs. 39.40 cores in 2018-2019 in comparison with Rs. 89.33 crores in the preceding year andthereby registering a decline of 55.89% over the year ago period. The sugar divisionrecorded profit before tax (PBT) of ' (12.54) crores in the year under review as againstprofit before tax (PBT) of Rs. 5.32 crores in the preceding year.
The Power Division has generated 26117257 KWH in 2018-2019 as against 24404891KWH of power in the preceding year thereby recording an increase of 7.02%. Members areaware that the company has not been able to generate power during off-season period in thepower division since the Government of Telangana has not been conceding to the request ofthe power entities to generate power using coal as an alternative fuel to the bagasse.
The power division has clocked a turnover of Rs. 20.59 crores in the year under reviewas against the turnover Rs. 13.81 crores made in the year-ago period and this works out toa an increase of 49.13% over the previous year.
The power Division could earn a Profit before tax (PBT) of Rs. 9.17 crores as againstRs. 4.69 crores in the previous year thus recording an increase of 95.52% in the yearunder review.
CURRENT YEAR OUTLOOK:
Taking into account the market conditions and other factors the company has set atarget of its cement production at 275000 MT for the current year.
The sugar division is impacted by various issues during the year under review. Thescarcity of water sources loss of productive areas in the zonal allocation made by thegovernment in 2017 and poor cane development are some of the critical factors and in viewof these factors your company has set a target of 80000 MT of cane crushing in thecurrent year.
The performance of power division is directly linked to the operational level of thesugar division. A favorable government policy with regard to utilization of coal as analternative fuel to bagasse during off- season of the power division is yet to crystallizesince the government has not been permitting the power generating companies to utilize thecoal as an alternative fuel to bagasse for the past three years. In view of this theperformance of the power division will continue to be low and added to this factor anyserious impediments to the sugar division will further impact the performance of the powerdivision.
All the properties of the Company including its buildings Plant and Machinery andStocks wherever required have been adequately insured.
Disclosures under the Companies Act 2013
I) EXTRACT OF THE ANNUAL RETURN:
The extract of the Annual Return as per provisions of section 92 of the Companies Act2013 and Rule 12 of Companies (Management and Administration) Rules 2014 in form MGT-9 isposted on the website at www.kakatiyacements.com.
II) BOARD MEETINGS:
During the year under review 4 (Four) Board Meetings were held. The details of theBoard Meetings and the attendance of the Directors are furnished elsewhere in theCorporate Governance Report.
III) CHANGES IN SHARE CAPITAL
There is no change in the Share Capital during the year under review.
IV) AUDIT COMMITTEE:
The terms of reference of the Audit Committee encompasses the requirements of Section177 of Companies Act 2013 and Regulation 18 of the Listing Regulations and inter aliaincludes:
a. To hold periodic discussions with the Statutory Auditors and Internal Auditors ofthe Company concerning the financial reports of the company and internal control systems.Examination of scope of audit and observations of the Auditors / Internal Auditors andoverseeing that the Company's financial reporting process and the disclosure of itsfinancial information to ensure that the financial statements are correct sufficient andcredible.;
b. To call for the comments of the auditors about internal control systems scope ofaudit including the observations of the auditors and review of financial statementsbefore their submission to the Board and also to discuss any related issues with theinternal and statutory auditors and the management of the company;
c. To evaluate internal financial controls and risk management systems;
d. To inter-alia review Management Discussion and Analysis of financial conditionsresults of operations and Statement of Significant Related Party transactions submitted bythe management before submission to the Board;
e. To investigate into any matter in relation to the items referred to it by the Boardand for this purpose obtain professional advice from external sources if required;
f. To make recommendations to the Board on any matter relating to the financialmanagement of the company including the Audit Report;
g. To approve Related Party Transactions.
h. Reviewing the functioning of the Whistle Blower mechanism;
i. Recommending the appointment re-appointment and if required the replacement orremoval of the statutory auditors and fixation of audit fee and approval for payment forany other services.
More details of the Audit Committee are furnished in the Corporate Governance Report.
V) REMUNERATION POLICY:
The Company follows a policy on remuneration of Directors and Senior Managementpersonnel. The Policy is approved by the Nomination and Remuneration Committee and theBoard.
More details on the same are given elsewhere in the Corporate Governance Report.
NOMINATION AND REMUNERATION COMMITTEE:
The main scope of the Nomination and Remuneration Committee is to determine andrecommend to the Board the persons to be appointed / re-appointed as Executive Directors /Non-Executive Directors.
The committee also determines and recommends to the Board the financial component. Thecompensation of the Executive Directors comprises of fixed components and may include alsocommission based on the profits earned by the company.
The compensation is determined based on the levels of responsibility and the parametersprevailing in the industry. The Executive Directors are not paid any sitting fee for Board/ Committee meetings attended by them. The Non-Executive Directors are paid sitting feefor Board / Committee Meetings attended by them and no other payment is made to them.
The Nomination and Remuneration Committee examines and devises a policy on Boarddiversity and to formulate criteria for determining qualifications experience positiveattributes and independence. It also recommends to the Board the factors to be reckonedwith in determining the remuneration payable to the Directors.
More details of the Nomination and Remuneration Committee are furnished elsewhere inthe Corporate Governance Report.
VI) RELATED PARTY TRANSACTIONS
Particulars of contracts / arrangements entered into by the company with RelatedParties referred to in Section 188 (1) of the Companies Act 2013 have been provided inForm No.AOC-2 pursuant to clause (b) of sub Section (3) of Section 134 of the Act and Rule8(2) of the Companies (Accounts) Rules 2014 and the same are annexed to this Report. (Annexure-1)
VII) STATEMENT OF PARTIULARS OF APPOINTMENT AND REMUNERATION OF THE MANAGERIALPERSONNEL:
The statement of particulars of Appointment and Remuneration of Managerial Personnel asper Section 197(12) of the Companies Act 2013 read with Rule 5 of Companies (Appointmentand Remuneration of Managerial Personnel) Rules 2014 is annexed to this Report.(Annexure-2)
VIII) STATEMENT OF DECLARATION FURNISHED BY INDEPENDENT DIRECTORS UNDER SECTION 149(6)OF THE COMPANIES ACT 2013:
The independent Directors have submitted the declaration of independence as requiredpursuant to section 149(7) of the Companies Act 2013 stating that they meet the criteriaof independence as provided in section 149(6) of the Companies Act 2013.
IX) CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS ANDOUTGO
The information relating to conservation of energy technology absorption and foreignexchange outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of the Companies (Accounts) Rules 2014 is annexed to this Report.
The Composition and other details of the Nomination and Remuneration CommitteeStakeholders Relationship Committee and Risk Management Committee are furnished in theCorporate Governance Report. The other details in respect of Audit Committee and CorporateSocial Responsibility Committee are also furnished in the Corporate Governance Report.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under section 134 (3) (c) and 134 (5) of the Companies Act2013 with respect to the Director's Responsibility statement the Board of Directors ofthe Company hereby confirm:
a. That in the preparation of annual accounts the applicable accounting standards havebeen followed and that there were no material departures therefrom.
b. That the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as on 31stMarch 2019 and of Profit of the Company for that period.
c. That the Directors have taken proper and sufficient care for maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.
d. That the Directors have prepared the Annual Accounts for the Financial Year ended 31stMarch 2019 on a going concern basis.
e. That 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. That the Directors have devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems were adequate and operatingeffectively.
EVALUATION OF THE BOARD'S PERFORMANCE:
In compliance with the provisions of Section 134 (3) (p) of the Companies Act 2013and Regulation 25 of SEBI (Listing obligations and Disclosure Requirements) Regulations2015 the performance evaluation of the Board was carried out during the year underreview.
More details on the same are furnished elsewhere in the Corporate Governance Report.
M/s. Ramanatham & Rao Chartered Accountants (Regn. No.S-2934) Secunderabad havebeen appointed as Statutory Auditors of the company at the 38th Annual GeneralMeeting held on September 25 2017 in accordance with the provisions of Section 139 andSection 142(1) of the Companies Act 2013 read with the companies (Audit and Auditors)Rules 2014 and other applicable rules if any (including any statutory modifications orre-enactment thereof for the time being in force). The appointment as Statutory Auditorswas for a period of five years from the conclusion of the 38th Annual GeneralMeeting till the conclusion of the 43rd Annual General Meeting to be held inthe year 2022. Consequently M/s. Ramanatham & Rao Chartered Accountants (Regn.No.S-2934) continues to be the Statutory Auditors of the company till the conclusion of 43rdAnnual General Meeting as approved by the shareholders at the 38th AnnualGeneral Meeting held on September 25 2017.
As per section 148 of the companies Act 2013 read with the Companies (Cost Records andAudit) Rules Cost records are required to be audited. Based on the recommendation ofAudit Committee your Board has appointed M/s. Narasimha Murthy Cost AccountantsHyderabad as Cost Auditors for the current year and necessary Resolution for ratificationof their remuneration is being placed before the shareholders for their approval in termsof Rule 14 (a) (ii) of the Companies (Audit and Auditors) Rules 2014. The Board hasappointed Smt. Manjula Aleti Company Secretary in whole-time Practice to carry outSecretarial Audit under the provisions of Section 204 of the Companies Act 2013 read withthe Companies (Appointment and Remuneration of the Managerial Personnel) Rules 2014 forthe financial year 2018-2019.
The Secretarial Audit Report issued by Smt. Manjula Aleti practicing Company Secretaryin Form-MR 3 is annexed to this Report. The Secretarial Audit Report does not contain anyqualifications reservations or adverse remarks.(Annexure -3)
The certificate issued by Smt. Manjula Aleti practicing Company Secretary underschedule V (C)(10)(i) of SEBI (Listing Obligation and Disclosure Requirements)Regulations 2015 stating that none of the directors of the company have been debarred ordisqualified from being appointed are continuing as directors of the company pursuant tothe directives of SEBI/ Ministry of Corporate Affairs or such statutory authority as on 31stMarch 2019 is annexed to this Report. (Annexure -4)
SEBI has made it mandatory on the part of the Listed Companies to secure an AnnualSecretarial Compliance Report from a practicing Company Secretary on compliance of allapplicable SEBI Regulations and Circulars / guidelines issued there under.
The Company has obtained the Annual Secretarial Compliance Report from Smt. ManjulaAleti practicing Company Secretary for the year ending 31st March 2019 and the same isannexed to this Report. (Annexure-5)
VIGIL MECHANISM AND WHISTLE BLOWING POLICY:
The Company has modified its Vigil Mechanism and Whistle Blower Policy in 2019 where inthe duties and obligations of the directors and designated persons have also beenprescribed in respect of insider trading of the securities of the company as any acts inviolation of the law and the codes prescribed by the company are viewed as offences forwhich the company is empowered to levy penalties on the offenders. The rest of the code isnot disturbed. It also provides for adequate safeguards against the victimization ofemployees who avail of the mechanism and also envisages direct access to the Chairpersonof the Audit Committee in exceptional cases. It is affirmed that no personnel of theCompany has been denied access to the Audit Committee.
The whistle blower policy aims at conduct of the affairs in a fair and transparentmanner by adopting highest standards of professionalism honesty integrity and ethicalbehavior. The policy on vigil mechanism and whistle blower policy may be accessed on thecompany's website:www.kakatiyacements.com.
RISK MANAGEMENT COMMITTEE:
The objective behind constitution of the Risk Management Committee is to identify riskdevelop appropriate risk mitigation strategies and to monitor activities of theorganization and also to highlight the systematic study safeguards against threats lossand damages of brand reputation and assets of the company. Improvement of level ofawareness and appreciating and managing material business risks are also the objectives ofthe Risk Management Committee.
The Committee besides identifying the risk factors is also expected to manage andmonitor risk and ensure that proper internal systems and processes are in place.
More details of the committee are furnished in the Corporate Governance Report.
The Company has been making endeavors to protect the environment from the evil effectsof pollution from time to time.
Planting of saplings and seedlings in and around the factories and colonies is beingdone on a continuous basis so as to develop green belt around the plant to improve theenvironment.
MANAGEMENT DISCUSSION AND ANALYSIS 2017
a) Industry Structure and Development:
The company has a well developed net work of dealers for its cement plant located inthe states of Telangana and Andhra Pradesh and the company therefore is in a reasonablycomfortable position in securing orders from its clients. It is heartening to note thatsome of the dealers have been patronizing the company since inception and the strongbondage that is developed between the company and dealers is one of the prominent featuresof this mutually beneficial relationship.
The sugar industry is essentially seasonal in its nature. The availability of canegood rainfall and proper irrigation facilities are primary issues that determine thefortunes of the industry. The allocation of zonal area to the sugar units by thedepartment is also an important factor as allotment of villages having growth potentialfor cultivation of cane will facilitate higher cane production leading to production ofhigher volumes in the sugar industry.
b) Opportunities and Threats:
The company is desirious of reaping the benefits of its well positioned dealer net workacross the states of Telengana and Andhra Pradesh in respect of its cement plant and willmake every effort to overcome the bottlenecks in achieving the targeted operations in itscement plant .
The Government of Telangana has not been permitting power generators to use coal as analternative fuel during the off season of the sugar industry as a matter of policy whichwas not the situation few years ago.
Unless the Government revisits the entire issue keeping in view the interest ofentrepreneurs as well as all other stakeholders it would be difficult for the powergenerators to survive in the long run as sub-optimal generation of power will seriouslyimpact the viability of the industry.
In the sugar industry fetching remunerative price for its product adequateavailability of sugar cane with close proximity to the sugar plant and industry-friendlygovernmental regulations are the key areas of concern.
The company will make its best endeavors in resolving the complicated issues in thesugar and power divisions through negotiations with governmental authorities and will alsoliaison with the legal advisers in respect of pending litigations concerning the powerdivision.
c) Segment or product-wise performance:
Segment-wise and product-wise performance has been furnished elsewhere in this Report.
d) Medium term and long term strategy
The range of market operations in respect of cement product is restricted to theTelangana and Andhra Pradesh. The existing production capacity can cater to the two telugustates. In the circumstances no medium term and long term strategy is being envisaged bythe company in absence of any immediate plans for expansion.
Division-wise outlook has been furnished elsewhere in this Report.
f) Risks and concerns:
The Cement Sugar and Power industries being core industries there is no risk ofproduct obsolescence or steep fall in demand by way of product substitution or otherwiseand therefore your Directors do not foresee any major risks and concerns in the nearfuture except as discussed elsewhere in this Report.
The company endeavors its best to effect necessary changes modifications to themachinery and equipment and also to carry out necessary maintenance works to position themachinery in all the divisions in robust conditions so as to keep the bottlenecks at bay.
g) Internal control systems and their adequacy:
As stated elsewhere in this Report the Company has adequate internal control systemsand the Reports of Internal Auditors are being placed before the Audit Committee andcorrective measures if any are being taken care of by the Company. The Chief FinancialOfficer will monitor the Internal audit Reports and brief the Audit Committee in case anydeficiency in the system is noticed.
h) Financial Performance with respect to operational performance:
This has been discussed elsewhere in this Report.
i) Human Resource Development and Industrial Relations:
The company believes that the quality of its employees is the key to success and istherefore committed to provide necessary human resource development and trainingopportunities to equip employees with additional skills to enable them to adapt tocontemporary technological advancements.
Industrial Relations during the year continued to be cordial through effectivecommunication meetings and negotiations with the work force.
The Company's strength consists of 639 employees directly and indirectly as on 31stMarch 2019.
j) The details of significant changes (change of 25% or more) as compared to theproceeding year in key financial ratios are provided herein below :-
|Sl. No. ||Particulars ||Variation % ||Reasons |
|1 ||Debtors Turnover Ratio ||28.15% ||Low Turnover |
|2 ||Inventory Turnover Ratio ||90.39% ||Low Turnover |
|3 ||Interest Covarage Ratio ||76.01% ||Increase in temporary borrowings |
|4 ||Net Profit Margin ( % ) ||28.63% ||Low PAT(Profit after tax) because of multiple causes |
|5 ||Retun on Networth ||51.05% ||Low PAT(Profit after tax) because of multiple causes |
k) Corporate Social Responsibility:
In compliance with Section 134(3) (a) of the Companies Act 2013 read with theCompanies Corporate Social Responsibility (CSR) policy Rules 2014 the company hasestablished CSR Committee comprising of Shri K Venkat Rao as Chairperson Shri P Veeraiahand Shri J S Rao as members. The committee is responsible for formulating and monitoringthe CSR policy of the Company.
The annual report of CSR activities forms part of this Report.(Annexure -6)
PARTICULRS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT2013.
There are no loans guarantees or investments made or given under Section 186 of theCompanies Act 2013.
Statements in this "Management Discussion and Analysis" may be considered tobe "forward looking statements" within the meaning of applicable securities Lawsor Regulations. Actual results could differ materially from those expressed or implied.Important factors that could make a difference to the Company's operations include globaland Indian demand-supply conditions finished goods prices raw material availability andprices cyclical demand and pricing in the Company's markets changes in GovernmentRegulations tax regimes besides other factors such as litigations and labournegotiations.
Your Directors take this opportunity to place on record their sincere thanks to theBanks the Transco Authorities of Telangana and Andhra Pradesh States and to variousdepartments of the Central Government and the State Governments of Telangana and AndhraPradesh for their support to the Industry.
The Directors thank the entire net work of dealers who have enabled the Company toachieve the volumes and kept up the rapport and friendly association with the company.
The Directors record their appreciation for committed support to the Company by all theemployees at all levels throughout the year under reference.
The Directors record their gratitude to all the Shareholders who have been reposingconfidence in the Company and its Management.
| ||By Order of the Board |
| ||for Kakatiya Cement Sugar and Industries Limited |
| ||P. Veeraiah |
|Place : Hyderabad ||Chairman and Managing Director |
|Date : 11th May 2019 ||DIN : 00276769 |