Directors Report of Kamadgiri Fashion Ltd.

Mar 31, 2025

Your directors are pleased to present the 38^th Annual Report on the business and operation of the Company together with the Audited
Financial Statements for the financial year ended on March 31,2025

FINANCIAL HIGHLIGHTS

('' in Lakhs)

Particulars	31-Mar-25	31-Mar-24
Income from operations	17,750.26	21,760.03
Other Income	108.95	511.70
Net Profit/(Loss) for the period (Before Exceptional and/or Extraordinary items)	160.00	(177.12)
Exceptional Items	-	-
Profit / (Loss) before Tax	160.00	(177.12)
Less: Provision for current tax	-	-
Less: Tax adjustment of earlier years	-	-
Less: Net deferred tax assets	40.07	(36.22)
(Loss) / Profit after tax	119.93	(140.90)
Other Comprehensive Income	9.12	(2.71)
Basic :	2.04	(2.40)
Diluted :	2.04	(2.40)

COMPANY’S PERFORMANCE

As we continue to build capacity for enhanced performance and
delivery across verticals, this will enable the Company to unlock
the potential of the Business with existing business of branded
Textile, Branded Apparel & Garmenting. Overall, the Company
saw better performance in all its segments.

During the year under review, the Company has achieved a
turnover of '' 17,750.26 Lakhs as compared to '' 21,760.03 Lakhs
in the previous year. The Company has opted alternate plans and
tapped available opportunities to continue to run its operations. The
profit/ (Loss) after tax for the financial year 2024-25 was 119.93
Lakhs as compared to profit/ (Loss) after tax for the financial year
2023-24 was (140.90) Lakhs during the previous year.

FUTURE PLAN

Increasing demand for apparel from the fashion industry coupled
with the growth of E-commerce platforms is expected to drive the
market growth over the next few years.

DIVIDEND

Considering the less profit in Company’s financial results during
the year under review, the Board of Directors (‘the Board’) have
not proposed any dividend for the year.

PUBLIC DEPOSIT

The Company has not accepted any deposits from public and as
such, no amount on account of principal or interest on deposits
from public was outstanding as on the date of the balance sheet
within the meaning of Section 73 of the Companies Act, 2013 read
with the Companies (Acceptance of Deposits) Rules, 2014. There
were no unpaid or unclaimed deposits as on 31^st March, 2025.

TRANSFER TO RESERVES

In view of less profit, the Board has decided not to transfer any
amount to General Reserves for the financial year ended March
31,2025

CORPORATE GOVERNANCE REPORT

As per Regulation 34(3) read with Schedule V of Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations), a
separate report on Corporate Governance is enclosed as a part
of this Annual Report. A Certificate from Auditors of your Company
regarding compliance of conditions of Corporate Governance as
stipulated in Regulation 17(7) read with Part A of Schedule II of
the Listing Regulations is also enclosed along with the Corporate
Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

In terms of the provisions of Regulation 34 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“the
Listing Regulations”), the Management’s discussion and analysis
is set out as Annexure A forming part of this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Companies
Act, 2013 (‘the Act’), with respect to Directors’ Responsibility
Statement it is hereby confirmed that:

i. In the preparation of Annual Accounts for the year ended on
31^st March, 2025 the applicable accounting standards have
been followed and there are not material departures from the
same.;

ii. the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company as at March 31,
2025 and of the profit of the Company for that period;

iii. the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting fraud and
other irregularities;

iv. the Directors have prepared the annual accounts for the
financial year ended March 31, 2025, on a going concern
basis;

v. the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial
controls are adequate and were operating effectively;

vi. the Directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and that
such systems were adequate and operating effectively.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year and as on date of this report, following were the
changes in Director/ Key Managerial Personnel:

1. Mrs. Neha Agrawal (DIN: 10720820) was appointed as a
Non-Executive Independent Director of the Company in the
Board meeting held on July 30, 2024. Her appointment was
subsequently regularized at the 37^th Annual General Meeting
for a term of five consecutive years, effective from July 30,
2024 to July 29, 2029.

2. Mr. Jagdish Prasad Dave, the Chief Financial Officer of the
Company, resigned from the position with effect from August
23, 2024 due to personal reason and other Occupancies.

3. Mr. Rahul Mehta, Non-Executive Independent Director of
the Company, retired upon the successful completion of
his second five-year term as a Non-Executive Independent
Director, with effect from September 25, 2024.

4. Mr. Narendra Joshi, was appointed as the Chief Financial
Officer of the Company, with effect from November 09, 2024.

5. Change in designation of Mr. Pradip Kumar Goenka
(DIN: 00516381) from Chairman and Managing Director to
Chairman and Executive Director of the Company, effective
January 15, 2025, along with revision in the remuneration
payable to him, as approved by the shareholders through
postal ballot.

6. Change in the Designation of Mr. Tilak Pradip Goenka
(DIN: 00516464) from Executive Director to Managing Director
of the Company for a term of five years, effective January 15,
2025, along with a revision in the remuneration payable to
him, as approved by the shareholders through postal ballot.

7. Mr. Abhishek Agarwal (DIN: 11194248) was Appointed as
an Additional Non-Executive Independent Director of the
Company with effect from July 15, 2025 and the Board
recommends his Regularisation at the ensuing Annual
General Meeting.

8. Mr. Tilak Goenka (DIN: 00516464), Executive Director, is
retiring by rotation and being eligible, offer himself for re¬
appointment. The Board recommends his re-appointment at
the ensuing Annual General Meeting.

The necessary disclosures required under the Companies Act,
2013 (“Act”) and the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”) and
Secretarial Standards-2 on General Meetings issued by the
Institute of Company Secretaries of India, for the above-mentioned
appointments/re-appointment are provided as on financial year.

The Company has received declarations from all its Independent

Directors, confirming that they meet the criteria of independence
as prescribed under Section 149(6) of the Act and Regulation
16(1)(b) of the Listing Regulations.

Additional information on appointment/re-appointment of Directors
as required under Regulation 36(3) of the Listing Regulations is
given in the Notice convening the ensuing AGM.

In terms of Section 152 of the Act and Reg 17 (1C) of SEBI (LODR),
Regulations 2015, Mr. Pradip Goenka retire by rotation at the
ensuing AGM and being eligible, offers himself for re-appointment.

Additional information on appointment/re-appointment of
Directors as required under Regulation 26(4) and 36 of the Listing
Regulations is appended as on annexure to the notice convening
the ensuing AGM.

POLICY ON DIRECTORS’ APPOINTMENT AND
REMUNERATION

The Company’s policy on Directors’ appointment and remuneration
and other matters provided in Section 178(3) of the Act, has
been disclosed in the Corporate Governance Report, which
forms part of this Annual Report. The appointment of Director’s
are made based on merit, apart from compliance of legal and
contractual requirements, that complements and expands
the skills, experience and expertise of the Board as a whole
taking into account knowledge, professional experience and
qualifications, gender, age, cultural and educational background,
and any other factors that the NRC might consider relevant for
the Board to function effectively. While appointing any person
as an Independent Director, utmost care is to be taken as to the
independence of such person.

NUMBER OF BOARD MEETINGS

The Board met 7 (Seven) times during the year under review. The
details of Board Meetings and the attendance of the Directors are
provided in the Corporate Governance Report which forms part of
this Annual Report.

PERFORMANCE EVALUATION

Pursuant to the provisions of the Act and Regulation 17(10)
and Regulation 25(4) of the Listing Regulations, the Board has
carried out an annual evaluation of performance of its own, the
Committees thereof and the Directors individually. At the meeting
of the Board all the relevant factors that are material for evaluating
the performance of the Committees and of the Board were
discussed in detail.

A separate exercise was carried out to evaluate the performance
of individual Directors including the Chairman of the Board, who
were evaluated on parameters such as level of engagement
and contribution, independence of judgment, safeguarding the
interest of the Company and its minority shareholders, etc. The
performance evaluation of the Independent Directors was carried
out by the entire Board except the Independent Director being
evaluated.

The performance evaluation of the Chairman and Non-Independent
Directors was carried out by the Independent Directors.

SUBSIDIARIES, JOINT VENTURES & ASSOCIATES

The Company does not have any subsidiary, joint venture or
associate Company as on March 31,2025.

COMMITTEES OF THE BOARD
Audit Committee

During the year under review, the Audit Committee of the Company
comprised of 3 (Three) Independent Directors viz. Mr. Amit Somani
as Chairman, Mrs Neha Agrawal and Ms. Bindu Shah There are no
instances where the Board did not accept the recommendations of
the Audit Committee. The terms of reference, powers and roles of
the Committee are disclosed in the Corporate Governance Report,
which forms part of this Annual Report. The Company Secretary
act as a Secretary of Audit Committee.

Other Committees

Details of other Committees of the Board along with their terms of
reference, composition and meeting(s) held during the year are
provided in the Corporate Governance Report which forms part of
this Annual Report.

AUDITORS AND AUDITORS’ REPORT
Statutory Auditors

M/s. DMKH & Co., Chartered Accountants, Mumbai, were
appointed as the Statutory Auditors of the Company at the 33^rd
(Thirty-Third) Annual General Meeting held on September 29,
2020, for a term of five (5) consecutive years, to hold office till the
conclusion of the 38^th (Thirty-Eighth) Annual General Meeting to
be held financial year 2025-26.

The term of M/s. DMKH & Co., Chartered Accountants, as
Statutory Auditors of the Company will expire at the conclusion
of the ensuing 38th Annual General Meeting. The Board of
Directors, based on the recommendation of the Audit Committee,
recommends their reappointment for a second term of 5 (five)
consecutive years from the conclusion of the 38^th AGM until the
conclusion of the 43^rd AGM, subject to approval of the members at
the ensuing AGM.

The Report given by the Auditors on the financial statements
of the Company forms part of this Report. The Auditors’ Report
does not contain any qualification, reservation, adverse remark or
disclaimer.

The Report given by the Auditors on the financial statements of the
Company is part of this Report. There has been no qualification,
reservation, adverse remark or disclaimer given by the Auditors in
their Report.

Secretarial Auditor

Pursuant to Section 204 of the Companies Act, 2013 and the
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Board of Directors has appointed M/s.
HD and Associates, Practicing Company Secretaries, to conduct
the Secretarial Audit of the Company for the financial year 2024¬
25. The Secretarial Audit Report for the year ended March 31,
2025, is annexed to this Report as Annexure B.

Further, based on the recommendation of the Audit Committee,
the Board has approved the appointment of M/s. HD and
Associates, Practicing Company Secretaries, for a term of five (5)
consecutive years commencing from the financial year 2025-26 to
2029-30, subject to the approval of the members at the ensuing
Annual General Meeting (“AGM”), on such remuneration as may
be determined by the Board of Directors. The said proposal is
included in the Notice convening the AGM.

Cost Auditor

As per the requirement of Central Government pursuant to Section
148 of the Act read with the Companies (Cost Records and Audit)
Rules, 2014 as amended from time to time, your Company has
been carrying out audit of cost records relating to Textile products
every year.

The Board, on the recommendation of Audit Committee, has
appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor
to audit the accounts of the Company for the financial year 2025¬
26. As required under the Act, a resolution seeking ratification of
members for the payment of remuneration to Cost Auditor forms
part of the Notice convening the AGM.

The Cost Audit report for the financial year 2024-25 was filed with
the Ministry of Corporate Affairs.

REPORTING OF FRAUDS

During the year under review, the Auditors have not reported any
instances of frauds committed in the Company by its Officers or
Employees to the Audit Committee under Section 143(12) of the
Companies Act, 2013.

POLICIES & DISCLOSURE REQUIREMENTS

Details of programme for familiarisation of Independent Directors
with the Company is available on the website of the Company at
the following link https://www.kflindia.com/policies-and-codes.

Policy on dealing with related party transactions is available on the
website of the Company at the following link https://www.kflindia.
com/policies-and-codes. Policy for determining Materiality of
Events of the Company is available on the website of the Company
at the following link https://www.kflindia.com/policies-and-codes.

The code of conduct for Directors and senior management of the
Company is available on website of the Company at the following
link https://www.kflindia.com/policies-and-codes.

The Company has formulated and disseminated a Whistle
Blower Policy to provide vigil mechanism for employees and
Directors of the Company to report genuine concerns that could
have serious impact on the operations and performance of the
business of the Company. This Policy is in compliance with
the provisions of Section 177(9) of the Act and Regulation 4(2)
(d)(iv) of the Listing Regulations. Policy on Whistle Blower
is available on website of the Company at the following link
https://www.kflindia.com/policies-and-codes.

CORPORATE SOCIAL RESPONSIBILITY

The company has constituted a Corporate Social Responsibility
committee (CSR committee) in accordance with Section

135 of the Act. The Board of directors of the company

has based on recommendation made by CSR committee,
formulated and approved CSR Policy of the company

and which has also been placed on website at a weblink:

https://www.kflindia.com/wp-content/uploads/201 9/01/
CORPORATE-SOCIAL-RESPONSIBILITY.pdf

The disclosure including inter-alia the composition of CSR
committee and the brief outline of CSR Policy as per Rule 8 of
Companies (Corporate Social Responsibility policy) Rule 2014
is made in prescribed form which is annexed to this report as
Annexure C.

SECRETARIAL STANDARDS

During the year under review, the Company has complied with
Secretarial Standards on meetings of the Board (“SS-1”) and on
General Meetings (“SS-2”) issued by the Institute of Company
Secretaries of India in terms of Section 118(10) of the Act.

ANNUAL RETURN

In terms of provisions of Section 134 and 92(3) of the Act, an Annual
Return in prescribed format is available on the Company''s website
at the following link https:// www.kflindia.com/annual-return/.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH
RELATED PARTIES

During the year under review, all transactions entered by the
Company with related parties as defined under the Act and
Regulation 23 of the Listing Regulations, were in the ordinary
course of business and on an arm''s length basis. There were no
materially significant transactions with the related parties during
the financial year which were in conflict with the interest of the
Company.

Disclosure of transactions with related parties as required under
the Indian Accounting Standard (IND AS-24) has been made in
the notes forming part of the financial statements. Accordingly,
the disclosure of related party transactions as required under
Section 134(3)(h) of the Act in Form AOC-2 is not applicable to
your Company.

MATERIAL CHANGES AND COMMITMENTS

Your directors further state that during the year under review,
the shareholders of the Company have approved the transfer of
Company''s business undertaking comprising the fabric distribution
division and Made-To-Measure business as a going concern on
Slump Sale basis to Tritoma Fashion Lab Private Limited by way
of Business Transfer Agreement (“BTA”) along with all of the rights,
title and interest therein for an aggregate cash consideration of
Rs.5.91 crores via Postal Ballot on May 28, 2024. Accordingly, the
Company has executed the Business Transfer Agreement (“BTA”)
with Tritoma Fashion Lab Private Limited on June 25, 2024 except
this there were no material changes have been taken place, that
could have an impact on the financial position of the company.

VIGIL MECHANISM

The company has established a vigil mechanism to provide a
framework to promote responsible and secure whistle blowing
and to provide a channel to the employee(s) and director to report
to the management, concern about unethical behaviour, actual
or suspected fraud or violation of the code of conduct or policy/
ies of the company as adopted /framed from time to time. The
mechanism provide for adequate safeguard against victimization
of employees and directors to avail of the mechanism and also
provide for direct access to the chairman of the audit committee in
exceptional cases.

PARTICULARS OF LOANS GRANTED, GUARANTEE
PROVIDED AND INVESTMENTS MADE PURSUANT TO THE
PROVISIONS OF SECTION 186 OF THE ACT

The Company has not granted any loans, not provided any
Guarantee and not made any Investments which are covered
under the provision of Section 186 of the Act.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE
REGULATORS

There were no significant and material orders passed by the
Regulators or Courts or Tribunals during the year.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
& FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 134(3)(m) of the Act read with
Rule 8(3) of Companies (Accounts) Rules, 2014 is given as
Annexure D. The Company being focusing in Indian market, it has
not taken any export initiative.

PARTICULARS OF EMPLOYEES

Disclosure as required under Section 197(12) of the Act read with
Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 framed there under, the
names and other particulars of employees are provided under
Annexure E is annexed to this Report.

A statement containing the particulars as required under Rule 5(2)
and 5(3) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 are provided in this Annual
Report.

In accordance with the provisions of the second proviso to Section
136(1) of the Act, the Annual Report excluding the aforesaid
information is being sent to the Members of the Company.
The said information is available on the Company''s website
www.kflindia.com.

RISK MANAGEMENT AND ADEQUACY OF INTERNAL
FINANCIAL CONTROL

The Company has in place a mechanism to identify, assess,
monitor and mitigate various risks to key business objectives. Major
risks identified by the businesses and functions are systematically
addressed through mitigating actions on a continuing basis. The
Company''s internal control systems are commensurate with the
nature of its business and the size and complexity of its operations.
These are routinely tested by Statutory as well as Internal Auditors.
Significant audit observations and follow up actions thereon are
reported to the Audit Committee.

The Board has adopted policies and procedures for ensuring the
orderly and efficient conduct of the business, including adherence
to the Company''s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
preparation of reliable financial disclosures.

The Audit Committee actively reviews the adequacy and
effectiveness of the internal control systems and suggests
improvements to strengthen the same. The Company has a robust
Management Information System, which is an integral part of the
control mechanism.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and
harassment free workplace for every individual working in
Company''s premises through various interventions and practices.
The Company always endeavours to create and provide an

environment that is free from discrimination and harassment
including sexual harassment.

The Company has in place a robust policy on prevention of
sexual harassment at workplace. The policy aim at prevention
of harassment of employees and lay down the guideline for
identification reporting and prevention of sexual harassment.
The company has complied with the provision relating to Internal
Complaint Committee (ICC). Further ICC is responsible for
redressal of complaint related to sexual harassment and follow
the guideline as provided in the policy.

During the year under review, there were no cases filed pursuant
to the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.

TRANSFER OF UNCLAIMED/UNPAID AMOUNTS TO THE
INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Pursuant to Sections 124 and 125 of the Act read with the Investor
Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 (“IEPF Rules”), dividend, if not
claimed for a consecutive period of 7 (Seven) years from the date
of transfer to Unpaid Dividend Account of the Company, are liable
to be transferred to the IEPF.

The following table provides the due dates for the transfer of
outstanding unpaid/unclaimed dividend by the Company as on
March 31,2025:

Year of Dividend	Date of declaration	Last date for claimingdue amount
2016-2017 (Final)	19/09/2017	25/10/2024
2017-2018 (Final)	25/09/2018	31/10/2025
2018-2019 (Final)	24/09/2019	30/10/2026

During the year under review, the Company had transferred 8,001
(Eight Thousand One) equity shares and Rs. 88,966/- (Rupees
Eighty-Eight Thousand Eight Hundred and Sixty-Six Only) as
unpaid/unclaimed dividend and shares lying against them to
Investor Education and Protection Fund authority for the financial
year ended 2016-17 pursuant to Section 124(5) of the Act read
with applicable rules made thereunder.

EQUITY SHARES IN THE SUSPENSE ACCOUNT

During the year under review, and in accordance with the
requirement of Regulation 34(3) and Part F of Schedule V to the
Listing Regulations, there were no shares transferred to suspense
account.

CHANGE IN NAME OF REGISTRAR AND SHARE TRANSFER
AGENT

The name of Registrar and Transfer Agent of the Company is
changed to MUFG Intime India Private Limited (RTA) from Link
Intime India Private Limited, with effect from December 31,2024.
This is pursuant to acquisition of Link Group by Mitsubishi UFJ
Trust & Banking Corporation, by way of scheme of arrangement.

MATERNITY BENEFITS

Your Company is committed to upholding the rights and welfare of
its women employees. During the year under review, the Company
continued to comply with the provisions of the Maternity Benefit
Act, 1961, as amended from time to time.

The Company provides maternity benefits to eligible female
employees, including paid maternity leave, nursing breaks,
and other necessary facilities, in accordance with the law. The
Company also supports a conducive and inclusive workplace
environment to ensure the health, safety, and dignity of women
employees during and after maternity.

PENALITIES / PUNISHMENT / COMPOUNDING OF OFFENCES

There were no instances of non-compliance by the Company on
any matters related to the capital markets or penalties, strictures
imposed on the Company by the Stock Exchange or SEBI or any
statutory authority on any matter related to capital markets, during
the last three years.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation
to all the bankers, customers, employees at all levels and
stakeholders for the continued support and patronage during the
year under review.

For And on Behalf of The Board of Directors
Kamadgiri Fashion Limited

Sd/- Sd/-

Pradip Kumar Goenka Tilak Pradip Goenka

Chairman & Executive Director Managing Director

DIN: 00516381 DIN: 00516464

Place: Mumbai
Date: 15^th July, 2025

---

Mar 31, 2024

Your directors are pleased to present the 37^th Annual Report on the business and operation of the Company together with the Audited Financial Statements for the financial year ended on March 31,2024.

FINANCIAL HIGHLIGHTS

('' in Lakhs)

Particulars	31-Mar-24	31-Mar-23
Income from operations	21,760.03	28,088.67
Other Income	511.70	198.10
Net Profit/(Loss) for the period (Before Exceptional and/or Extraordinary items)	(177.12)	223.09
Exceptional Items
Profit / (Loss) before Tax	(177.12)	223.09
Less: Provision for current tax	-	63.48
Less: Tax adjustment of earlier years	-	-
Less: Net deferred tax assets	(36.22)	12.04
(Loss) / Profit after tax	(140.90)	147.57
Other Comprehensive Income	(2.71)	35.81
Basic :	(2.40)	2.51
Diluted :	(2.40)	2.51

COMPANY’S PERFORMANCE

As we continue to build capacity for enhanced performance and delivery across verticals, this will enable the Company to unlock the potential of the Business with existing business of branded Textile, Branded Apparel & Garmenting. Overall, the Company saw better performance in all its segments.

During the year under review, the Company has achieved a turnover of '' 21760.03 Lakhs as compared to '' 28,088.67 Lakhs in the previous year. The Company has opted alternate plans and tapped available opportunities to continue to run its operations. The profit/ (Loss) after tax for the financial year 2023-24 was (140.90) Lakhs as compared to profit/ (Loss) after tax for the financial year 2022-23 was 147.57 Lakhs during the previous year.

FUTURE PLAN

Increasing demand for apparel from the fashion industry coupled with the growth of E-commerce platforms is expected to drive the market growth over the next few years.

DIVIDEND

Considering the less profit in Company’s financial results during the year under review, the Board of Directors (‘the Board’) have not proposed any dividend for the year.

PUBLIC DEPOSIT

The Company has not accepted any deposits from public and as such, no amount on account of principal or interest on deposits from public was outstanding as on the date of the balance sheet within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014. There were no unpaid or unclaimed deposits as on 31^st March, 2024.

TRANSFER TO RESERVES

In view of less profit, the Board has decided not to transfer any amount to General Reserves for the financial year ended March 31,2024.

CORPORATE GOVERNANCE REPORT

As per Regulation 34(3) read with Schedule V of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations‘), a separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Regulation 17(7) read with Part A of Schedule II of the Listing Regulations is also enclosed along with the Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

In terms of the provisions of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”), the Management’s discussion and analysis forming part of this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Companies Act, 2013 (‘the Act’), with respect to Directors’ Responsibility Statement it is hereby confirmed that:

i. In the preparation of Annual Accounts for the year ended on 31^st March, 2024, the applicable accounting standards have been followed and there are not material departures from the same.;

ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates

that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2024 and of the profit of the Company for that period;

iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the Directors have prepared the annual accounts for the financial year ended March 31, 2024, on a going concern basis;

v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

During the year and as on date of this report, following were the changes in Director/ Key Managerial Personnel:

1. Mr. Abhay Kumat, the Chief Executive Officer of the Company, resigned from the position with effect from February 9, 2024 due to personal reason and other Occupancies.

2. Mrs. Deepa Toshniwa, the Company Secretary & Compliance Officer (Key Managerial Personnel) of the Company, resigned from the position with effect from February 9, 2024 due to personal reason and other Occupancies.

3. Mr. Siddhant Singh, was appointed as the Company Secretary & Compliance Officer (Key Managerial Personnel) of the Company, with effect from February 10, 2024.

The necessary disclosures required under the Companies Act, 2013 (“Act”) and the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) and Secretarial Standards-2 on General Meetings issued by the Institute of Company Secretaries of India, for the above-mentioned appointments/re-appointment are provided as on financial year.

The Company has received declarations from all its Independent Directors, confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations.

Additional information on appointment/re-appointment of Directors as required under Regulation 36(3) of the Listing Regulations is given in the Notice convening the ensuing AGM.

In terms of Section 152 of the Act and Reg 17 (1C) of SEBI (LODR), Regulations 2015, Mr. Tilak Goenka retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.

Additional information on appointment/re-appointment of

Directors as required under Regulation 26(4) and 36 of the Listing Regulations is appended as on annexure to the notice convening the ensuing AGM.

POLICY ON DIRECTORS’ APPOINTMENT AND

REMUNERATION

The Company’s policy on Directors’ appointment and remuneration and other matters provided in Section 178(3) of the Act, has

been disclosed in the Corporate Governance Report, which forms part of this Annual Report. The appointment of Director’s are made based on merit, apart from compliance of legal and contractual requirements, that complements and expands the skills, experience and expertise of the Board as a whole taking into account knowledge, professional experience and qualifications, gender, age, cultural and educational background, and any other factors that the NRC might consider relevant for the Board to function effectively. While appointing any person as an Independent Director, utmost care is to be taken as to the independence of such person.

NUMBER OF BOARD MEETINGS

The Board met 5 (Five) times during the year under review. The details of Board Meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.

PERFORMANCE EVALUATION

Pursuant to the provisions of the Act and Regulation 17(10) and Regulation 25(4) of the Listing Regulations, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the Independent Directors was carried out by the entire Board except the Independent Director being evaluated.

The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.

COMPANY’S INVESTMENT

Metawear Limited a subsidiary company was converted into an associate company on 20^th May, 2022. Due to further investment by other investors the stake was reduced from 51% to 49%. On 27^th May, 2022, The Company stake was further reduced from 49% to 31%. Further on 11^th February, 2023 company has made divestment of its balance holding of 31%.

Your Company has divestment the entire holding in Metawear Limited to Think9 Consumer Technologies Private Limited (“Think9”), resulting Metawear Limited is no longer associate concern of the Company hence there is consolidation of the financial were not required.

COMMITTEES OF THE BOARD

Audit Committee

During the year under review, the Audit Committee of the Company comprised of 3 (Three) Independent Directors viz. Mr. Amit Somani as Chairman, Mr. Rahul Mehta and Ms. Bindu Shah There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of this Annual Report. The Company Secretary act as a Secretary of Audit Committee.

Other Committees

Details of other Committees of the Board along with their terms of reference, composition and meeting(s) held during the year are provided in the Corporate Governance Report which forms part of this Annual Report.

AUDITORS AND AUDITORS’ REPORT Statutory Auditors

During the year under review, M/s. DMKH & Co., Chartered Accountants, Mumbai were appointed as statutory auditors of your Company at the 33^rd (Thirty Third) AGM held on September 29, 2020 for a term of 5 (five) consecutive years and they hold office till the conclusion of 38^th (Thirty-Eight) AGM.

The Report given by the Auditors on the financial statements of the Company is part of this Report. There has been no qualification, reservation, adverse remark or disclaimer given by the Auditors in their Report.

Secretarial Auditor

The Company has appointed M/s. HD and Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2024-25 in terms of provisions of Section 204 of the Act. The Secretarial Audit Report for the year ended March 31, 2024 is annexed to this report as Annexure B.

Cost Auditor

As per the requirement of Central Government pursuant to Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out audit of cost records relating to Textile products every year.

The Board, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 202425. As required under the Act, a resolution seeking ratification of members for the payment of remuneration to Cost Auditor forms part of the Notice convening the AGM.

The Cost Audit report for the financial year 2023-24 was filed with the Ministry of Corporate Affairs.

REPORTING OF FRAUDS

During the year under review, the Auditors have not reported any instances of frauds committed in the Company by its Officers or Employees to the Audit Committee under Section 143(12) of the Companies Act, 2013.

POLICIES & DISCLOSURE REQUIREMENTS

Details of programme for familiarisation of Independent Directors with the Company is available on the website of the Company at the following link https://www.kflindia.com/policies-and-codes.

Policy on dealing with related party transactions is available on the website of the Company at the following link https://www.kflindia. com/policies-and-codes. Policy for determining Materiality of Events of the Company is available on the website of the Company at the following link https://www.kflindia.com/policies-and-codes .

The code of conduct for Directors and senior management of the Company is available on website of the Company at the following link https://www.kflindia.com/policies-and-codes.

The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of Section 177(9) of the Act and Regulation 4(2) (d)(iv) of the Listing Regulations. Policy on Whistle Blower is available on website of the Company at the following link https://www.kflindia.com/policies-and-codes.

CORPORATE SOCIAL RESPONSIBILITY

The company has constituted a Corporate Social Responsibility committee (CSR committee) in accordance with Section 135 of the Act. The Board of directors of the company has based on recommodation made by CSR committee, formulated and approved CSR Policy of the company and which has also been placed on website at a weblink: https://www.kflindia.com/wp-content/ uploads/2019/01/CORPORATE-SOCIAL-RESPONSIBILITY.pdf

The disclosure including inter-alia the composition of CSR committee and the brief outline of CSR Policy as per Rule 8 of Companies (Corporate Social Responsibility policy) Rule 2014 is made in prescribed form which is annexed to this report as Annexure A.

SECRETARIAL STANDARDS

During the year under review, the Company has complied with Secretarial Standards on meetings of the Board (“SS-1”) and on General Meetings (“SS-2”) issued by the Institute of Company Secretaries of India in terms of Section 118(10) of the Act.

ANNUAL RETURN

In terms of provisions of Section 134 and 92(3) of the Act, an Annual Return in prescribed format is available on the Company’s website at the following link https://www.kflindia.com/annual-return/.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, all transactions entered by the Company with related parties as defined under the Act and Regulation 23 of the Listing Regulations, were in the ordinary course of business and on an arm’s length basis. There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.

Disclosure of transactions with related parties as required under the Indian Accounting Standard (IND AS-24) has been made in the notes forming part of the financial statements. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Act in Form AOC-2 is not applicable to your Company.

MATERIAL CHANGES AND COMMITMENTS

Your directors further state that as on date of signing of this report the shareholders of the Company have approved the transfer of Company’s business undertaking comprising the fabric distribution division and Made-To-Measure business as a going concern on Slump Sale basis to Tritoma Fashion Lab Private Limited by way of Business Transfer Agreement (“BTA”) along with all of the rights, title and interest therein for an aggregate cash consideration of '' 5.91 crores via Postal Ballot on May 28, 2024. Accordingly, the Company has executed the Business Transfer Agreement (“BTA”)

with Tritoma Fashion Lab Private Limited on June 25, 2024 except this there were no material changes have been taken place, that could have an impact on the financial position of the company.

VIGIL MECHANISM

The company has established a vigil mechanism to provide a framework to promote responsible and secure whistle blowing and to provide a channel to the employee(s) and director to report to the management, concern about unethical behaviour, actual or suspected fraud or violation of the code of conduct or policy/ ies of the company as adopted /framed from time to time. The mechanism provide for adequate safeguard against victimization of employees and directors to avail of the mechanism and also provide for direct access to the chairman of the audit committee in exceptional cases.

PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE ACT

The Company has not granted any loans, not provided any Guarantee and not made any Investments which are covered under the provision of Section 186 of the Act.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS

There were no significant and material orders passed by the Regulators or Courts or Tribunals during the year.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 134(3)(m) of the Act read with Rule 8(3) of Companies (Accounts) Rules, 2014 is given as Annexure C. The Company being focusing in Indian market, it has not taken any export initiative.

PARTICULARS OF EMPLOYEES

Disclosure as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure D is annexed to this Report.

A statement containing the particulars as required under Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in this Annual Report.

In accordance with the provisions of the second proviso to Section 136(1) of the Act, the Annual Report excluding the aforesaid information is being sent to the Members of the Company. The said information is available on the Company’s website www.kflindia.com.

RISK MANAGEMENT AND ADEQUACY OF INTERNAL FINANCIAL CONTROL

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company’s internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors.

Significant audit observations and follow up actions thereon are reported to the Audit Committee.

The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

The Audit Committee actively reviews the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and harassment free workplace for every individual working in Company’s premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.

The Company has in place a robust policy on prevention of sexual harassment at workplace. The policy aim at prevention of harassment of employees and lay down the guideline for identification reporting and prevention of sexual harassment. The company has complied with the provision relating to Internal Complaint Committee (ICC). Further ICC is responsible for redressal of complaint related to sexual harassment and follow the guideline as provided in the policy.

During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

TRANSFER OF UNCLAIMED/UNPAID AMOUNTS TO THE INVESTOR EDUCATION AND PROTECTION FUND (IEPF)

Pursuant to Sections 124 and 125 of the Act read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”), dividend, if not claimed for a consecutive period of 7 (Seven) years from the date of transfer to Unpaid Dividend Account of the Company, are liable to be transferred to the IEPF.

The following table provides the due dates for the transfer of outstanding unpaid/unclaimed dividend by the Company as on March 31,2024:

Year of Dividend	Date of declaration	Last date for claiming due amount
2015-2016 (Final)	19/09/2016	25/10/2023
2016-2017 (Final)	19/09/2017	25/10/2024
2017-2018 (Final)	25/09/2018	31/10/2025
2018-2019 (Final)	24/09/2019	30/10/2026

During the year under review, the Company had transferred 1,595 (One-Thousand Five Hundred and Ninety-Five) equity shares and '' 1,01,166/- (Rupees One Lakh One Thousand One Hundred and

Sixty-Six Only) as unpaid/unclaimed dividend and shares lying against them to Investor Education and Protection Fund authority for the financial year ended 2015-16 pursuant to Section 124(5) of the Act read with applicable rules made thereunder.

EQUITY SHARES IN THE SUSPENSE ACCOUNT

During the year under review, and in accordance with the requirement of Regulation 34(3) and Part F of Schedule V to the Listing Regulations, there were no shares transferred to suspense account.

PENALITIES / PUNISHMENT / COMPOUNDING OF OFFENCES

There were no instances of non-compliance by the Company on any matters related to the capital markets or penalties, strictures imposed on the Company by the Stock Exchange or SEBI or any statutory authority on any matter related to capital markets, during the last three years.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

For And on Behalf of The Board of Directors Kamadgiri Fashion Limited

Sd/- Sd/-

Pradip Kumar Goenka Tilak Pradip Goenka

Managing Director Director

DIN: 00516381 DIN: 00516464

Place: Mumbai Date: 30^th July 2024

---

Mar 31, 2018

To

The Members,

The Directors are pleased to present the Thirty-First Annual Report on the business and operation of the Company together with the Audited Financial Statements for the year ended March 31, 2018.

FINANCIAL HIGHLIGHTS (Rs. in Lakhs)

Particulars	2017-18	2016-17
Income from Operations	33,152.52	30,482.91
Other Income	148.39	45.64
Profit before tax	1,062.03	414.19
Less: Provision for current tax	417	220.00
Less: Net deferred tax liability	(6.28)	(87.35)
Profit after tax	651.31	281.54
Other Comprehensive Income	7.74	(16.25)
Earning per share of Rs. 10/- each
Basic (in Rs.)	11.10	4.80
Diluted (in Rs.)	11.10	4.80

COMPANY’S PERFORMANCE

Pursuant to the notification issued by the Ministry of Corporate Affairs on February 16, 2015 and under the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, the Company has adopted Indian Accounting Standards (Ind AS) on April 1, 2017, with the transition date as April 1, 2016.

The Financial Statements for the year under review and previous year have been prepared in accordance with the recognised and measurement principles stated therein. Considering the effect given in the financial statements of the previous years, as per the provisions of Ind AS 101 with respect to “First-time Adoption of Indian Accounting Standards”.

During the year under review, the Company has achieved a turnover of Rs. 33,152.52 Lakhs as compared to Rs. 30,482.91 Lakhs in the previous year. Accordingly, there was a top line growth of 8.76%. The Profit after tax for the financial year 2017-18 was Rs. 651.31 lakhs as compared to Rs. 281.54 lakhs during the previous year.

FUTURE PLANS

The Company would continue its focus in increasing efficiency through modernisation and adoption innovative management methods in every division of the Company. The Company’s finished fabrics division which supplies fabrics to readymade branded manufacturers is expected to perform better, considering the improved consumer sentiments.

The Company proposes to launch “RISQUE” - Men’s Casual Shirt Brand targeted for online market and distribution network. This would enable the Company to create better margin in same capacities. Also, the brand will be positioned to enter new areas and segments of fashion. The Company proposes to enter into Women’s Wear segment wherein it will use fabric manufacturing capacity of the Company to offer innovative fabrics for women’s garments and use these fabrics to create garment samplings eventually to create women’s wear brand in long run.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs. 2/- (i.e. 20%) per equity share on the equity capital of the Company for the year under review. The said dividend shall be subject to the approval of the members at the ensuing annual general meeting.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

RESERVES

During the year under review, the Company has not transferred any profit to general reserves.

CORPORATE GOVERNANCE REPORT

As per Regulation 34(3) read with schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), a separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Regulation 17(7) read with Part A of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also enclosed along with the Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is as required under Regulation 34 read with Schedule V of the Listing regulations forms part of this Annual Report.

DISCLOSURE REQUIREMENTS

Details of programmes for familiarization of Independent Directors with the Company are available on the website of the Company at the folllowing link http://kflindia.com/wp-content/uploads/2017/09/ PD-3.pdf.

Policy on dealing with related party transactions is available on the website of the Company at the following link http://kflindia.com/wp-content/uploads/2017/09/PD-1.pdf .

Policy for archival of documents of the Company is available on the website of the Company at the following link http://kflindia.com/ wp-content/uploads/2018/04/Archival-Policy.pdf .

Policy for determining Materiality of Events of the Company is available on the website of the Company at following the link http://kflindia.com/ wp-content/uploads/2018/05/WebsiteRegulation-305 2018-19 KFL.pdf.

The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of Section 177(9) of the Companies Act, 2013 and Regulation 4(2)(d) (iv) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Policy on Whistle Blower is available on the website of the Company at the following link http://kflindia.com/ wp-content/uploads/2017/09/PD-2.pdf .

NUMBER OF BOARD MEETINGS

The Board of Directors met 4 (Four) times during the financial year 2017-18. The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.

DECLARATION BY INDEPENDENT DIRECTORS:

The Company has received necessary declarations from all the Independent Directors under Section 149(7) of the Act stating that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013.

PERFORMANCE EVALUATION OF BOARD

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) and Regulation 25(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the Independent Directors was carried out by the entire Board except the Independent Director being evaluated.

The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.

POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION

The Company’s policy on Directors’ appointment and remuneration and other matters provided in Section 178(3) of the Companies Act, 2013, has been disclosed in the Corporate Governance Report, which forms part of the Annual Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In terms of Section 152 of the Companies Act, 2013, Mr. Pradip Kumar Goenka retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.

Additional information on appointment/re-appointment of Directors as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in the Notice convening the ensuing Annual General Meeting.

During the year, Mr. Siddanth Singh ceased to be a Key Managerial Personnel of the Company with effect from December 5, 2017.

Subsequent to the year under review, Mr. Lalit Goenka ceased to be a Director of the Company with effect from May 26, 2018 and Mr. Gaurav K. Soni was appointed as Company Secretary (Key Managerial Personnel) with effect from May 26, 2018.

COMMITTEES OF THE BOARD OF DIRECTORS

AUDIT COMMITTEE

During the year in review, the Audit Committee of the Company comprised of three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul Mehta and Ms. Bindu Shah. Mr. Sanjeev Maheshwari is the Chairman of the Audit Committee. There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of the Annual Report.

Details of all the Committees of the Board of the Company along with their terms of reference, composition and meetings held during the year, are provided in the Corporate Governance Report, which forms part of this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Companies Act, 2013, with respect to Directors’ Responsibility Statement it is hereby confirmed that:

i. in the preparation of the annual accounts for the financial year ended March 31, 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2018 and of the profit of the Company for that period;

iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the Directors have prepared the annual accounts for the financial year ended March 31, 2018, on a going concern basis;

v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

AUDITORS AND AUDITORS’ REPORT

Statutory Auditors

At the Annual General Meeting of the Company held on September 26, 2014, M/s. Haribhakti & Co. LLP, Chartered Accountants, Mumbai was appointed as statutory auditors of the Company to hold office till the conclusion of the 32nd Annual General Meeting.

The Auditors’ Report does not contain any disqualification, reservation or adverse mark.

Secretarial Auditor

The Company has appointed M/s. H. S. Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2017-18 in terms of provisions of Section 204 of the Companies Act, 2013. The Secretarial Auditor Report for the year ended March 31, 2018 is annexed to this report as Annexure A. There is no observation or comment which requires your attention.

Cost Auditor

As per the requirement of Central Government pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out Cost Audit of cost records relating to Textile products every year.

The Board of Directors, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 2018-19 at a remuneration of Rs. 0.90 Lakh plus Goods and Service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking ratification of members’ for the payment of remuneration to Cost Auditor forms part of the Notice convening the Annual General Meeting.

The Cost Audit report for the financial year 2016-17 was filed with the Ministry of Corporate Affairs.

EXTRACT OF ANNUAL RETURN

In terms of provisions of Section 92(3) of the Companies Act, 2013, an extract of Annual Return in prescribed format is annexed to this Report as Annexure B.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, all transactions entered into by the Company with related parties as defined under the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were in the ordinary course of business and on an arm’s length basis. There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.

Disclosure of transactions with related parties as required under the Indian Accounting Standard (IND AS-24) has been made in the notes forming part of the financial statements. Accordingly, the disclosure of related party transactions as required under section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable to your Company.

PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not granted any loans, not provided any Guarantee and not made any Investments which are covered under the provision of Section 186 of the Companies Act, 2013.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014 is given as Annexure C. The Company being focusing in Indian market, it has not taken any export initiative.

PARTICULARS OF REMUNERATION TO MANAGERIAL PERSONNEL

In terms of provisions of the Companies Act, 2013 and disclosure as required under rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure D, which is annexed to this Report.

A statement containing the particulars as required under rule 5(2) and (3) of the Companies (Appointment and Remuneration of managerial Personnel) Rules, 2014 is not required to be given as per the Notification issued by Ministry of Corporate Affairs dated June 30, 2016.

RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company’s internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors. Significant audit observations and follow up actions thereon are reported to the Audit Committee.

The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

The Audit Committee of the Board of Directors actively review the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and harassment free workplace for every individual working in Company’s premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.

During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board

For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka

Date: May 26, 2018 Chairman & Managing Director

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Mar 31, 2016

To

The Members,

The Directors are pleased to present the Twenty-Ninth Annual Report on the business and operation of the Company together with the Audited Financial Statements for the year ended 31st March, 2016.

FINANCIAL HIGHLIGHTS (Rs.in Lakh)

Particulars	Financial Year 2015-16	Financial Year 2014-15
Turnover	30,058.05	25,966.75
Other Income	4.02	2.20
Profit before tax	320.20	356.26
Less: Provision for current tax	(164.78)	(107.59)
Less: Net deferred tax liability / (asset)	(34.72)	31.44
Profit for the year	190.14	217.23
Add: Balance brought forward	1,091.04	1,016.16
Profit available for appropriation	1,281.18	1,193.34
Appropriation:
Transferred to General Reserve	9.51	10.86
Proposed dividend	81.60	75.97
Tax on proposed dividend	16.61	15.47
Balance carried forward	1,173.46	1,091.04

OPERATIONS

During the year under review, the Company has achieved a turnover of Rs.30,058.05 lakh as compared to Rs.25,966.75 lakh in the previous year. Accordingly, there was a top line growth of 15.90%. The Profit after tax for the financial year 2015-16 was Rs.190.14 lakh as compared to Rs.217.23 lakh during the previous year. There was decline in the Profit after tax due to higher cost of production comprising of increased cost of labour cost, job charges, material cost and power tariffs.

The Company has been working on various measures to reduce cost and increase the efficiency.

FUTURE PLANS

The Company is identifying its core strength of weaving, manufacturing “value for money” fabrics/garments and marketing same through its distribution network as well as organized retail market. Further, the Company is also concentrating on brand manufacturing contract, which gives lesser margin but at the same time releases marketing pressure. The Company continues to innovate and improve upon its production process to increase its operational efficiency at optimum cost.

The Management is expecting these initiatives to result in better profitability in coming years.

ISSUE OF SECURITIES

During the year under review, the Company has issued and allotted 3,75,000 Equity shares of Rs.10/- each at a premium of Rs.52/- per share aggregating Rs.232.50 lakh and 4,29,505 Compulsorily Convertible Debentures (“CCDs”) of Rs.10/- each at a premium of Rs.52/- per CCD aggregating Rs.266.29 lakh convertible on 01st April, 2016.

Through these preferential issues of securities, the Company has raised Rs.498.79 lakh in aggregate from non-promoter group.

SHARE CAPITAL

During the year, paid up Equity share capital of the Company has been increased from Rs.506.49 lakh to Rs.543.89 lakh consequent to issue of 3,75,000 new shares on preferential basis.

On 01st April, 2016, paid up Equity share capital of the Company further increased to Rs.586.93 lakh on conversion of 429,505 CCDs.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs.1.50/- (i.e. 15%) per equity share on the equity capital of the Company for the year under review. The said dividend shall be subject to the approval of the members at the ensuing annual general meeting.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

RESERVES

During the year under review, the Company has transferred Rs.9.51 lakh to general reserves.

CORPORATE GOVERNANCE REPORT

As per Regulation 34(3) read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a separate report on Corporate Governance is enclosed as a part of this Annual Report. A certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Regulation 17(7) read with Part A of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is also enclosed along with the Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is presented as a separate section forming part of this Annual Report.

DISCLOSURE REQUIREMENTS

The process of Familiarization program for Independent Directors is posted on website of the Company at the link http://kflindia.com/wp-content/ uploads/2015/08/KFL-ID-Familiarization.pdf.

Accordingly, the Company provides as part of Board Meeting insight on various business process through specific discussion on business review. As part of familiriasation program the Company has spent about two hours during the year in various Board Meetings on business review and update.

Policy on dealing with related party transactions is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-RPT-Policy.pdf

The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of Section 177(9) of the Companies Act, 2013 and Regulation 4(d)(iv) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Establishment of Vigil Mechanism is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-Vigil-Mechanism.pdf

NUMBER OF BOARD MEETINGS

The Board of Directors met 5 (Five) times during the financial year 2015-16. The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.

DECLARATION BY INDEPENDENT DIRECTORS:

The Company has received necessary declarations from all the Independent Directors under Section 149(7) of the Act stating that they meet the criteria of independence laid down in Section 149(6) of the Companies Act, 2013.

PERFORMANCE EVALUATION OF BOARD

Pursuant to the provisions of the Companies Act, 2013 and Regulation 17(10) and Regulation 25(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.

A separate exercise was carried out to evaluate the performance of individual Directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the Independent Directors was carried out by the entire Board except the Independent Director being evaluated.

The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.

POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION

The Company''s policy on Directors'' appointment and remuneration and other matters provided in Section 178(3) of the Companies Act, 2013, has been disclosed in the Corporate Governance Report, which forms part of the Annual Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In terms of Section 152 of the Companies Act, 2013, Mr. Lalit Genka retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment.

Mr. Siddhant Singh was appointed as Company Secretary with effect from 01st September, 2015.

Additional information on appointment/reappointment of Directors as required under Regulation 36 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is given in the Notice convening the ensuing Annual General Meeting.

COMMITTEES OF THE BOARD OF DIRECTORS AUDIT COMMITTEE

During the year review, the Audit Committee of the Company comprised of three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul Mehta and Ms. Bindu Shah. Mr. Sanjeev Maheshwari is the Chairman of the Audit Committee. There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of the Annual Report.

Details of all the Committees of the Board of the Company along with their terms of reference, composition and meetings held during the year, are provided in the Corporate Governance Report, which forms part of this Annual Report.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements of Section 134(5) of the Companies Act, 2013, with respect to Directors'' Responsibility Statement it is hereby confirmed that:

i. in the preparation of the annual accounts for the financial year ended 31st March, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2016 and of the profit of the Company for that period;

iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the Directors have prepared the annual accounts for the financial year ended 31st March, 2016, on a going concern basis;

v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

AUDITORS AND AUDITORS’ REPORT Statutory Auditors

At the Annual General Meeting of the Company held on 26th September, 2014, M/s Haribhakti & Co. LLP, Chartered Accountants, Mumbai was appointed as statutory auditors of the Company to hold office till the conclusion of the 32nd Annual General Meeting. In terms of the first proviso to Section 139 of the Companies Act, 2013 the appointment of the auditors shall be placed for ratification at every Annual General Meeting.

Accordingly, the appointment of M/s. Haribhakti & Co. LLP, Chartered Accountants, Mumbai, as statutory auditors of the Company, placed before for ratification by the shareholders.

The Auditors'' Report does not contain any disqualification, reservation or adverse mark.

Secretarial Auditor

The Company has appointed M/s. H. S. Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2015-16 in terms of provisions of Section 204 of the Companies Act, 2013. The Secretarial Auditor Report for the year ended 31st March, 2016 is annexed to this report as Annexure A. There is no observation or comment which requires your attention.

Cost Auditor

As per the requirement of Central Government pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out Cost Audit of cost records relating to Textile products every year.

The Board of Directors, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 2016-17 at a remuneration of Rs.90,000/- plus service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking ratification of members'' for the payment of remuneration to Cost Auditor forms part of the Notice convening the Annual General Meeting.

The Cost Audit report for the financial year 2014-15 was filed with the Ministry of Corporate Affairs.

EXTRACT OF ANNUAL RETURN

In terms of provisions of Section 92 (3) of the Companies Act, 2013, an extract of Annual Return in prescribed format is annexed to this Report as Annexure B.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, all transactions entered into by the Company with related parties as defined under the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, were in the ordinary course of business and on an arm''s length basis.

There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.

Disclosure of transactions with related parties as required under the Accounting Standard (AS-18) has been made in the notes forming part of the financial statements. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 in Form AOC-2 is not applicable to your Company.

PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not granted any loans, not provided any Guarantee and not made any Investments which are covered under the provision of Section 186 of the Companies Act, 2013.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE

Information pursuant to Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014 is given as Annexure C. The Company being focusing in Indian market, it has not taken any export initiative.

PARTICULARS OF EMPLOYEES

In terms of provisions of Companies Act, 2013 and disclosure as required under Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure D, which is annexed to this Report.

Addition to the above, a statement containing the particulars as required under Rule 5(2) and (3) of the Companies (Appointment and Remuneration of managerial Personnel) Rules, 2014 is given as Annexure E.

RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company''s internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested Statutory as well as Internal Auditors. Significant audit observations and follow up actions thereon are reported to the Audit Committee.

The Board has adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

The Audit Committee of the Board of Directors actively review the adequacy and effectiveness of the internal control systems and suggests improvements to strengthen the same. The Company has a robust Management Information System, which is an integral part of the control mechanism.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and harassment free workplace for every individual working in Company''s premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.

During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board

For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka

Date: 30th May, 2016 Chairman & Managing Director

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Mar 31, 2015

The Members,

The Directors are pleased to present the Twenty-eighth Annual Report along with the audited Financial Statements for the year ended 31st March 2015.

FINANCIAL HIGHLIGHTS ( Rs. in Lakh) PARTICULARS 2014-2015 2013-2014

Turnover 25,966.75 25,310.42

Other Income 2.20 9.37

Profit before tax 356.26 438.19

Less: Provision for current tax 107.59 119.00

Less: Net deferred tax liability 31.44 26.61

Profit for the year 217.23 292.58

Add: Balance brought forward 1016.16 827.09

Profit available for appropriation 1193.34 1119.67

Appropriation:

Transferred to General Reserve 10.85 14.63

Proposed dividend 75.97 75.97

Tax on proposed dividend 15.47 12.91

Balance carried forward 1091.04 1016.16

OPERATIONS

During the year under review, the Company has achieved marginally higher top line compared to previous year. The Company has achieved a turnover of Rs. 25,966.75 lakh during the year as compared to Rs. 25,310.42 lakh during the previous year. The Profit after tax for the financial year 2014-15 was Rs. 217.23 lakh as compared to Rs. 292.58 lakh during the previous year.

The measures took by the Company on cost, capacity utilisation and product innovation have started showing results. The Company believes that working on the said purpose would be continuous pursuit.

FUTURE PLANS

The Company plans to strengthen existing business operations by streamlining activities requiring more management thrust for showing improved performance, as per the plan envisaged by the Company. The Company continue its pursuit to reduced operational costs, better utilisation manufacturing facilities and product innovation. The management is expecting these initiatives to result in better profitability in coming years.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs. 1.50 (i.e.15%) per equity share on the equity capital of the Company for the year under review.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

CORPORATE GOVERNANCE REPORT

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate from Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange is also enclosed along with the Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is presented as a separate section forming part of this Annual Report. DISCLOSURE REQUIREMENTS

Details of programmes for familiarization of Independent Directors with the Company are available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-ID-Familiarization.pdf

Policy on dealing with related party transactions is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-RPT-Policy.pdf.

The Company has formulated and disseminated a Whistle Blower Policy to provide vigil mechanism for employees and Directors of the Company to report genuine concerns that could have serious impact on the operations and performance of the business of the Company. This Policy is in compliance with the provisions of section 177(9) of the Companies Act, 2013 and clause 49 of the Listing Agreement. Policy on Whistle Blower is available on the website of the Company at the link http://kflindia.com/wp-content/uploads/2015/08/KFL-Vigil-Machanism.pdf

NUMBER OF BOARD MEETINGS

The Board of Directors met 5 (Five) times during the financial year 2014-15. The details of Board meetings and the attendance of the Directors are provided in the Corporate Governance Report which forms part of this Annual Report.

PERFORMANCE EVALUATION OF BOARD

Pursuant to the provisions of the Companies Act, 2013 and clause 49 of the Listing Agreement, the Board has carried out an annual evaluation of performance of its own, the Committees thereof and the Directors individually. At the meeting of the Board all the relevant factors that are material for evaluating the performance of the Committees and of the Board were discussed in detail.

A separate exercise was carried out to evaluate the performance of individual directors including the Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution, independence of judgment, safeguarding the interest of the Company and its minority shareholders, etc. The performance evaluation of the independent directors was carried out by the entire Board except the independent directors being evaluated.

The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors.

POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION

The Company's policy on directors' appointment and remuneration and other matters provided in section 178(3) of the Companies Act, 2013, has been disclosed in the Corporate Governance Report, which forms part of the Annual Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

The Directors express their profound grief at the sad demise of Mr. Ashwani Bhatia, Independent Director on 6th June 2015 and place on record the deep sense appreciation for valuable contribution made by him.

During the year under review, Ms. Bindu Shah was appointed as an Additional Director (Independent) with effect from 21st March 2015. As per the provisions of section 161(1) of the Companies Act, 2013 ('the Act'), she holds office upto the date of the ensuing Annual General Meeting. A Notice under section 160(1) of the Act has been received from a Member signifying its intention to propose Ms. Bindu Shah as an Independent Director of the Company. The Board recommended her appointment as an Independent Director for a term of five years at the ensuing Annual General Meeting.

In terms of section 152 of the Act, Mr. Pradip Kumar Goenka retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment

The Company has received necessary declarations from all the Independent Directors under section 149(7) of the Act that they meet the criteria of independence laid down in section 149(6) of the Act and Clause 49 of the Listing Agreement.

The Board of Directors, subject to approval of members at the ensuing Annual General Meeting, have approved reappointment of Mr. Pradip Kumar Goenka as Chairman & Managing Director with effect from 26th August 2015 for a period of 3 years. The Board, subject to shareholders' approval, in order to comply with section 203(1) of the Act and to continue the dual position held by Mr. Pradip Kumar Goenka as Chairman & Managing Director and also to realign with the provisions of the Companies Act, 2013, the Company proposes to adopt a new set of Articles of Association as per Table 'F' of Schedule I of the Companies Act, 2013

Mr. Jagdish Prasad Dave, Finance Controller of the Company was appointed as Chief Financial Officer with effect from 12th November, 2014.

Additional information on appointment / reappointment of directors as required under clause 49 of the Listing Agreement is given in the Notice convening the ensuing Annual General Meeting.

COMMITTEES OF THE BOARD OF DIRECTORS AUDIT COMMITTEE

During the year review, the Audit Committee of the Company comprised of three Independent Directors viz., Mr. Sanjeev Maheshwari, Mr. Rahul Mehta and Mr. Ashwani Bhatia. Mr. Sanjeev Maheshwari is the Chairman of the Audit Committee. Ms. Bindu Shah, Independent Director has been appointed as a member of the Committee with effect from 11th August 2015 in place of Late Mr. Ashwani Bhatia. There are no instances where the Board did not accept the recommendations of the Audit Committee. The terms of reference, powers and roles of the Committee are disclosed in the Corporate Governance Report, which forms part of the Annual Report.

Details of all the Committees of the Board of the Company along with their terms of reference, composition and meetings held during the year, are provided in the Corporate Governance Report, which forms part of this Annual Report.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements of section 134(5) of the Companies Act, 2013, with respect to Directors' Responsibility Statement it is hereby confirmed that:

i. in the preparation of the annual accounts for the financial year ended 31st March 2015, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

ii. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2015 and of the profit or loss of the Company for that period;

iii. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the Directors have prepared the annual accounts for the financial year ended 31st March, 2015, on a going concern basis.

v. the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

vi. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

AUDITORS AND AUDITORS' REPORT Statutory Auditors

At the Annual General Meeting of the Company held on 26th September 2014, M/s Haribhakti & Co LLP, Chartered Accountants, Mumbai was appointed as statutory auditors of the Company to hold office till the conclusion of the 32nd Annual General Meeting. In terms of the first proviso to section 139 of the Companies Act, 2013 the appointment of the auditors shall be placed for ratification at every Annual General Meeting.

Accordingly, the appointment of M/s. Haribhakti & Co LLP, Chartered Accountants, Mumbai, as statutory auditors of the Company, placed before for ratification by the shareholders.

The Auditors' Report does not contain any disqualification, reservation or adverse mark.

Secretarial Auditor

The Company has appointed M/s. H. S. Associates, Company Secretaries to conduct Secretarial Audit of the Company for the financial year 2014-15 in terms of provisions of section 204 of the Companies Act, 2013. The Secretarial Auditor Report for the year ended 31st March 2015 is annexed to this report as Annexure A.

With regards to the observation made by the Secretarial Auditor in his report, we state that though the Company could not appoint a company secretary during the year, on the date of signing of this report, the Company has appointed a company secretary with effect from 1st September 2015.

Cost Auditor

As per the requirement of Central Government pursuant to section 148 of the Companies Act 2013 read with the Companies (Cost Records and Audit) Rules, 2014 as amended from time to time, your Company has been carrying out Cost Audit of cost records relating to Textile products every year.

The Board of Directors, on the recommendation of Audit Committee, has appointed Ms. Ketki D. Visariya, Cost Accountant, as Cost Auditor to audit the accounts of the Company for the financial year 2015-16 at a remuneration of Rs. 90,000/- plus service tax as applicable and reimbursement of out of pocket expenses. As required under the Companies Act, 2013, a resolution seeking ratification of members' for the payment of remuneration to Cost Auditor forms part of the Notice convening the Annual General Meeting.

The Cost Audit report for the financial year 2013-14 was filed with the Ministry of Corporate Affairs.

EXTRACT OF ANNUAL RETURN

In terms of provisions of section 92 (3) of the Companies Act, 2013, an extract of Annual Return in prescribed format is annexed to this Report as Annexure B.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, all transactions entered into by the Company with related parties as defined under the Companies Act, 2013 and clause 49 of the Listing Agreement, were in the ordinary course of business and on an arm's length basis. There were no materially significant transactions with the related parties during the financial year which were in conflict with the interest of the Company.

Disclosure of transactions with related parties as required under the Accounting Standard (AS-18) has been made in the notes forming part of the financial statements. Particulars of contract or arrangements with related parties referred to in section 188(1) of the Companies Act, 2013, in the prescribed Form AOC-2, is appended as Annexure C, which forms part of this Report.

PARTICULARS OF LOANS GRANTED, GUARANTEE PROVIDED AND INVESTMENTS MADE PURSUANT TO THE PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not granted any Loans, not provided any Guarantee and not made any Investments which are covered under the provision of section 186 of the Companies Act, 2013.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE

Information pursuant to section 134(3)(m) of the Companies Act, 2013 read with Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 is given as Annexure D, Form "A" & "B" is attached and form part of this report. The Company being focusing in Indian market, it has not taken any export initiative.

PARTICULARS OF EMPLOYEES

In terms of provisions of Companies Act, 2013 and disclosure as required under rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 framed there under, the names and other particulars of employees are provided under Annexure E, which is annexed to this Report.

Addition to the above, a statement containing the particulars as required under rule 5(2) and (3) of the Companies (Appointment and Remuneration of managerial Personnel) Rules, 2014 is given as Annexure F

RISK MANAGEMENT POLICY AND INTERNAL ADEQUACY

The Company has in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis. The Company's internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested Statutory as well as Internal Auditors. Significant audit observations and follow up actions thereon are reported to the Audit Committee.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and harassment free workplace for every individual working in Company's premises through various interventions and practices. The Company always endeavours to create and provide an environment that is free from discrimination and harassment including sexual harassment.

During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka Date: 11th August 2015 Chairman & Managing Director

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Mar 31, 2014

Dear members,

The Directors have great pleasure in presenting Twenty-seventh Annual Report along with the audited Balance Sheet and Statement of Profit and Loss for the year ended 31 st March 2014.

FINANCIAL HIGHLIGHTS

$ In lacs PARTICULARS 2013-2014 2012-2013

Turnover 25,310.42 20,217.68

Other Income 9.37 20.01

Profit Before Tax 438.19 151.83

Less: Current Tax 119.00 30.40

Less: Defferred Tax 26.61 60.30

Less: MAT Credit Entitlement - (30.40)

Profit for the Year 292.58 91.53

Add: Balance Brought Forward 827.09 765.18

Profit Available for Appropriation 1,119.67 856.71

Appropriation - -

Transferred to General Reserve 14.63 -

Proposed Dividend 75.97 25.32

Tax on Proposed Dividend 12.91 4.30

Balance Carried Forward 1,016.16 827.09

OPERATIONS

During the year under review, the turnover of and profit from the business grew in-spite of challenging business environment. The Company achieved turnover of $ 25,310.42 lacs during the financial year under review as compared to $ 20,217.68 lacs during the previous financial year. The Profit after tax for the financial year 2013-14 was $ 292.58 lacs as compared to $ 91.53 lacs during the previous financial year. The Company could achieve better profitability due to optimising its operations and changing manufacturing product mix. Your Company has been putting in all efforts to control costs, ensure optimum utilisation of available manufacturing facilities and investing on product innovations to provide value added products and thereby increasing contribution to profitability.

FUTURE PLANS

The Company plans to further consolidate its existing business and continue to its efforts to reduce operational costs, improve utilisation ratio of manufacturing facilities and continue to work on product innovations. The Company expects the continued focus on aforesaid measures which would help the Company to improve its profitability by creating niche market for its products. Further, the Company proposes to optimise the available manufacturing facilities by adding few more equipments which would increase the production capacity.

DIVIDEND

Your Directors are pleased to recommend a dividend of $1.50 per equity share (i.e. 15%) on the equity capital of the Company for the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is presented as a separate section forming part of this Annual Report. CORPORATE GOVERNANCE REPORT

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate of Auditors'' of your Company regarding compliance of conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange is also enclosed along with the Corporate Governance Report.

PARTICULARS OF EMPLOYEES

Particulars as required to be disclosed under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are given in the Annexure A to this Report.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

DIRECTORS

In accordance with the provisions of the Companies Act, 2013, Mr. Pradip Kumar Goenka, Mr. Anil Biyani and Mr. Lalit Goenka, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment.

In line with the provisions of section 149 and other applicable provisions of the Companies Act, 2013, Mr. Ashwani Bhatia, Mr. Rahul Mehta and Mr. Sanjeev Maheshwari are being appointed as Independent Directors for a term of five years from the date of the ensuing Annual General Meeting. Necessary resolutions and requisite details have been included in Notice of Annual General Meeting.

AUDITORS

M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as Statutory Auditors upto the conclusion of the ensuing Annual General Meeting and being eligible, offers themselves for re-appointment. Shareholders are requested to appoint them as Statutory Auditors to hold office upto the conclusion of the 32nd Annual General Meeting and to fix their remuneration.

COST AUDIT

The Company has been maintaining cost accounting records for textile products. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as a cost auditor for the financial year 2014-15. The Cost Audit Report for the financial year 2013-14 has been filed with the Ministry of Corporate Affairs.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:

i in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. the selected accounting policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2014 and that of the profit of the Company for the year ended on that date;

iii. the proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the annual accounts have been prepared on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE

Information pursuant to section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 is given in Form "A" & "B" which forms part of this report. Since the Company is focusing in Indian market, it has not taken any export initiative.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka Date : 28th May 2014 Chairman & Managing Director

Registered Office: 28, Y. A. Chunawala Industrial Estate Kondivita Lane, Andheri (East) Mumbai - 400059

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Mar 31, 2013

To The Members,

The Directors have great pleasure in presenting Twenty-sixth Annual Report along with the audited Statement of Accounts for the year ended 31st March 2013.

FINANCIAL HIGHLIGHTS

( in Lacs)

2012-13 2011-12

Turnover 20217.68 20523.01

Other Income 29.39 15.00

Profit before tax 151.83 275.08

Less: Provision for current tax 30.40 54.92

Less: Net deferred tax liability 60.30 52.06

Profit for the year 91.53 168.10

Add: Balance brought forward 765.18 626.51

Profit available for appropriation 856.71 794.61

Appropriation:

Proposed dividend 25.32 25.32

Tax on proposed dividend 4.30 4.11

Balance carried forward 827.09 765.18

OPERATIONS

Year 2012-13 was another challenging year for the Company. During the year under review, the Company was able to maintain the top line almost at the same level as of the previous year despite challenging business environment and weak consumer sentiment. However, the Company could not maintain bottom line due to overall increase in operational costs including interest, personnel, power and fuel costs. The Company has achieved a turnover of Rs. 20217.68 lacs during the year as compared to Rs. 20523.01 lacs during the previous year. The profit after tax for the financial year 2012-13 was Rs. 91.53 lacs as compared to Rs. 168.10 lacs during the previous year. The various measures taken for controlling the costs and improving the productivity have started giving returns. As these measures are continuous process, the Company would continue its effort to increase the productivity, control the costs and investing on product innovations, to reap benefits in terms of increase profitability in years to come.

FUTURE PLANS

During the year, the Company plans to further strengthen its presence in branded fabrics, mainly linen, polyester, viscose and polyester cotton blends. In weaving division, the Company intends to gradually replace old machines with the technologically advanced machines to enhance the productivity.

The Company also plans to launch ''Lombard'' brand of premium fabrics and accessories range. The Company has entered into brand licensing agreement with Future Brands Limited, the brand owners of ''Lombard''. The Company believes that this business has a potential to grow in the long run.

The Company has, in principle, decided to dispose of its jeans stitching and washing facility situated at Plot no. B7/3, MIDC, Tarapur, Thane District, Maharashtra, as the same is not a major contributor to the top line and is reducing overall profitability being a negative contributor. Sale of these facilities would free up the working capital to some extent and would also help to improve the operational efficiency and bottom line of the Company.

The Company plans to consolidate its business and continue its effort to control costs, better utilization of manufacturing facilities and investing on product innovations. The Company expects the continued focus on said measures, would help the Company to improve its bottom line as well as top line. In view of these efforts, the proposed Rights Issue of shares of the Company has also been called off.

Future Group continues to be associated with the Company for strategic and marketing initiatives. This association helps the Company to counter the competition and assures ready market for quality products of the Company.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs.0.50 per equity share (i.e. 5%) on the equity capital of the Company for the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is presented as a separate section forming part of this Annual Report.

CORPORATE GOVERNANCE REPORT

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate of Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange is also enclosed along with the Corporate Governance Report.

PARTICULARS OF EMPLOYEES

Particulars as required to be disclosed under section 217(2A) of the Companies Act,1956 read with the Companies (Particulars of Employees) Rules, 1975 are given in the Annexure A to this Report.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Mr. Anil Biyani and Mr. Ashwani Bhatia, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The details as required by clause 49 of the Listing Agreement, is given as part of the general meeting notice.

Mr. Lalit Kumar Goenka, Whole time Director has ceased to be a Whole time Director after the close of business hour on 25th August 2012 and he continues as a Non-Executive Director.

Mr. Madhusudan Singrodia has resigned as Director of the Company w.e.f. 29th May, 2013 due to pre-occupation. Board places on record sincere appreciation for the contribution made by him during his tenure as Director of the Company.

AUDITORS

M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as Statutory Auditors up to the conclusion of the ensuing Annual General Meeting and being eligible, offers themselves for re-appointment. They have issued a certificate to the effect that their appointment, if made, at the ensuing Annual General Meeting shall be within the limits prescribed under section 224(1B) of the Companies Act, 1956. Shareholders are requested to appoint them as Statutory Auditors to hold office up to the conclusion of the next Annual General Meeting and to fix their remuneration.

COST AUDIT

Your Company is following the order issued under the section 209(1)(d) of the Companies Act, 1956 as amended in respect of manufacture of textiles. The Company has been maintaining cost accounting records as required in the above referred provision of the Companies Act, 1956 as amended. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as a cost auditor for the financial year 2013-14.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:

I. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. the selected accounting policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2013 and that of the profit of the Company for the year ended on that date;

iii. the proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the annual accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board

For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka

Date: 30th May 2013 Chairman & Managing Director

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Mar 31, 2012

The Directors have great pleasure in presenting Twenty-fifth Annual Report along with the audited Balance Sheet and Profit and Loss Account, for the year ended 31 st March 2012.

FINANCIAL HIGHLIGHTS

(Rs. in Lacs )



Turnover 20395.43 14551.75

Other Income 142.58 58.36

Profit before tax 275.08 478.22

Less: Provision for current tax 54.92 139.55

Less: Net deferred tax liability 52.06 15.54

Profit for the year 168.10 323.13

Add: Balance brought forward 626.51 407.83

Profit available for appropriation 794.61 73D.96

Appropriation:

Transferred to General Reserve - 16.16

Proposed dividend 25.32 75.97

Tax on proposed dividend 4.11 12.32

Balance carried forward 765.18 626.51

OPERATIONS

During the year under review, despite challenging business environment, the Company could grow its top line reasonably well. The Company has achieved a turnover of Rs.120395.43 lacs during the year as compared to Rs. 14551.75 lacs during the previous year. The Profit after tax for the financial year 2011-12 was Rs. 168.10 lacs as compared to Rs. 323.13 lacs during the previous year. There was a pressure on bottom line due to overall increase in operational expenses. Your Company has been working hard to control costs, better utilization of available manufacturing facilities and investing on product innovations. The Company expects the continued focus on said measures, would help the Company to improve its bottom line as well as top line in coming days.

FUTURE PLANS

The Company plans to strengthen its presence in branded fabrics, mainly in linen, polyester viscose and polyester cotton blends. The Company also plans to consolidate its existing business and continue its efforts to control costs, better utilization of manufacturing facilities and investing on product innovations. The Company expects the continued focus on said measures, would help the Company to improve its bottom line as well as top line in coming days.

The Company had received approval from SEBI for its draft letter of offer of the proposed Rights Issue to shareholders. However, looking at the present market scenario, the Rights Issue is kept on hold.

Future Group continues to be associated for strategic and marketing initiatives. This helps the Company to counter competitors and assures ready market for its quality products.

DIVIDEND

Your Directors are pleased to recommend a dividend ofRs. 0.50 per equity share (i.e. 5%) on the equity capital of the Company for the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis is presented as a separate section forming part of this Annual Report.

CORPORATE GOVERNANCE REPORT '

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate of Auditors' of your Company regarding compliance of conditions of Corporate Governance as stipulated in clause 49 of the Listing Agreement with stock exchange is also enclosed along with the Corporate Governance Report.

PARTICULARS OF EMPLOYEES

Particulars as required to be disclosed under section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are given in the Annexure At this Report.

PUBLIC DEFOSIT

The Company has not accepted any deposit from the public during the financial year under review.

DIRF.CTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Mr. Rahul Mehta and 'Mr. Sanjeev Maheshwari, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The details as required by clause 49 of the Listing Agreement, are given as part of the general meeting notice.

The Board of Directors, subject to approval of members, have approved reappointment of Mr. Pradip Kumar Goenka as Chairman and Managing Director w.e.f. 26th August 2012 for a period of 3 years.

Mr. Lalit Kumar Goenka, Whole time Director has decided not to seek reappointment after end of his present tenure on 25th August 2012 and accordingly, he shall relinquish his office after the closure of business hour of 25th August 2012. Board of Directors places on record sincere appreciation for the services rendered by him.

Mr. Anil Biyani was appointed as an Additional Director of the Company w.e.f. 29th May, 2012. He holds office till the date of the ensuing Annual General Meeting. The Company has received a notice from a member under section 257 of the Companies Act, 1956, signifying his intention to propose Mr. Anil Biyani for the office of Director.

AUDITORS

M/s. Haribhakti & Co., Chartered Accountants, Mumbai holds office as Statutory Auditors up to the conclusion of the ensuing Annual General Meeting and being eligible, offers themselves for re-appointment. They have issued a certificate to the effect that their appointment, if made, at the ensuing Annual General Meeting shall be within the limits prescribed under section 224(1 B) of the Companies Act, 1956. Shareholders are requested to appoint them as Statutory Auditors to hold office up to the conclusion of the next Annual General Meeting and to fix their remuneration.

COST AUDIT

Your Company is following the order issued under the section 209(1 )(d) of the Companies Act, 1956 as amended in respect of manufacture of textiles. The Company has been maintaining cost accounting records as required in the above referred provision of the Companies Act, 1956 as amended. Ms. Ketki D. Visariya, Cost Accountant, has been appointed as a cost auditor for the financial year 2012-13.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:

I. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

ii. the selected accounting policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 st March 2012 and that of the profit of the Company for the year ended on that date;

iii. the proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. the annual accounts have been prepared on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO AND EXPORT INITIATIVE

Information pursuant to section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 is given as Form "A" & "B" is attached and form part of this report. The Company being focusing in Indian market, it has not taken any export initiative.

ACKNOWLEDGMENT

The Board wishes to place on record its sincere appreciation to all the bankers, customers, employees at all levels and stakeholders for the continued support and patronage during the year under review.

By Order of the Board

For Kamadgiri Fashion Limited

Place: Mumbai Pradip Kumar Goenka

Date: 11th August 2012 Chairman & Managing Director

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Mar 31, 2010

The Directors have great pleasure in presenting 23rd Annual Report along with the Audited Balance Sheet and Profit and Loss Account, forthe year ended 31 st March, 2010.

FINANCIAL HIGHLIGHTS

(Rupees in Lacs)

2009-10 2008-09

Turnover 10535.27 8,252.20

Other Income 214.76 38.95

Profit before tax 275.83 114.55

Less: Provision for current tax 138.45 63.68

Add/Less: Net deferred tax assets/liability (20.47) (29.71)

Add/Less: Prior Period adjustment (3.25) 0.00

Less: Fringe Benefit tax 0.00 6.50

Profit after tax 157.85 74.10

Less/Add: tax adjustment of earlier year 12.98 (0.86)

Profit & Loss account balance brought forward 313.53 295.74

Profit available for appropriation 480.12 368.98 Appropriation:

General Reserve 4.19 -

Proposed dividend 59.25 47.40

Tax on proposed dividend 9.84 8.05

Balance carried to Balance Sheet 407.83 313.53



OPERATIONS

During the year under review, performance of your Company was satisfactory. The Company has achieved a turnover of Rs. 105.35 Crores during the year as compared to Rs.82.52 Crores during the previous year. The Profit after tax for the financial year 2009-10 was Rs. 1.57 Crores as compared to Rs.74.10 Lacs during the previous year. The better performance in the year under review was result of efficient and better utilisation of available manufacturing facilities, conversion of job work sales into direct processed & complete garment sales as well as trading operations to meet raw material requirements for manufacturing facilities and distribution.

FUTURE PLANS

During the current financial year, the Company have added 24 Tzudocoma Airjet weaving machines to fullfill the ever growing demand of cotton fabrics. With measures taken to achieve higher efficiencies it is expected that the Current capacity will improve substantially.

As young India demands more and formal smart casual and casual products, during the year under review, the Company converted one shirt manufacturing unit for producing casual shirts. Also we started offering a complete package of ready garment during the year under review in comparison to major portion of job work or conversion in 2008-09.

True value grew its distribution business to new heights. "True Lines" range got established with retailers as well as customers. We are positioning it among the top brands in linen over the counter distribution business. To improve its positioning, the offering has been done through through innovative product catalogues. The Company expects and targets quadruple growth of linen business during the current year.

Future Group continues to be associated for strategic and marketing initiatives. This help the Company to counter competitors and assures ready market for its quality products.

DIVIDEND

Your Directors are pleased to recommend a dividend of Rs. 1.25/- (12.50%) per equity share of Rs. 10/- each. The dividend will be declared at the forthcoming Annual General Meeting by the members and will be paid within the prescribe time limit to the members whose names appear on the Register of Members as on 23rd September, 2010.

CORPORATE GOVERNANCE REPORT

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A Certificate of Auditors of your Company regarding compliance of conditions of Corporate Governance as stipulated in Clause 49 of the Listing Agreement with stock exchange is enclosed herewith.

COMPLIANCE CERTIFICATE

Compliance Certificate as required under section 383Aof the Companies Act, 1956 prepared and issued by HS Associates, Company Secretaries in Practice, is annexed hereto.

PARTICULARS OF EMPLOYEES

No details as required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, are given, as there are no employees drawing remuneration in excess of the prescribed limits.

PUBLIC DEPOSIT

The Company has not accepted any deposit from the public during the financial year under review.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company, Mr. Murarilal Goenka and Mr. Lalit Kumar Goenka, Directors of the Company retire by rotation at the ensuing Annual General Meeting andi^eing eligible offer themselves for re-appointment. The details as required by clause 49 of the Listing Agreement, is given as part of the general meeting notice. Mr. Ashwani S. Bhatia was appointed as an Additional Director of the Company w.e.f. 30th October, 2009. He holds office till the date of the ensuing Annual General Meeting. The Company has received a notice from a member alongwith a deposit of Rs. 500/- proposing the candidature of Mr. Ashwani Bhatia to the office of Director liable to retire by rotation pursuant to Section 257 of the Companies Act, 1956. During the year, Mr. Tilak Pradip Goenka resigned as Director.

AUDITORS

M/s. R. S. Agrawal & Associates, Chartered Accountants, Auditors of the Company, retire at the ensuing Annual General Meeting. They have expressed their unwillingness and unavailability to continue as Auditors of the Company. The Board proposes to appoint M/s. Haribhakti & Co., Chartered Accountants, leading audit firm, as the Auditors of the Company in place of the retiring auditors at the ensuing Annual General Meeting. M/s. Haribhakti & Co., Chartered Accountants have issued a certificate to the effect that their appointment, if made at the ensuing annual general meeting shall be within the limits prescribed under section 224(1 B) of the Companies Act, 1956. In view of the increased operations of the Company, post amalgamation, it would be desirable to have a leading audit firm as the auditors of the Company and hence your Directors recommend appointment of M/s. Haribhakti & Co., Chartered Accountants as Statutory Auditors of the Company and to fix their remuneration.

OBSERVATION IN AUDITORS REPORT

The Auditors have remarked about the provision being made for the leave encashment for employees of the Company on actuarial basis, results into change in the accounting policy of the Company. The impact on Profit & Loss account and General Reserves was due to difference in policy followed by the Company. For the year, the Company has made uniform provision of leave encashment benefits for all its employees as per provisions of AS-15.

With regard to the observation about the Internal Audit system, management has to state that the same is under review and the proper internal audit policy and procedure would be set up during the current year.

COST AUDIT

Your Company is following the order issued under the Section 209(1 )(d) of the Companies Act, 1956 as amended in respect of manufacture of textiles. The Company has been maintaining cost accounting records as required in the above referred provision of the Companies Act, 1956 as amended. Ms. Ketki D. Visariya, CostAccountant, has been appointed as a cost auditor for the financial year 2010-11.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:

i. in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; ii. the selected accounting policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the

Company as at 31st March, 2010 and that of the profit of the Company forthe year ended on that date; iii. the proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv. the annual accounts have been prepared on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO

Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 is given in Annexure "A" & "B" is attached and form part of this report. The Company being focusing in Indian market, it has not taken any export initiative.

ACKNOWLEDGEMENT

The Board wishes to place on record their sincere appreciation to all the bankers, customers, employees at all levels and stakeholders forthe continued support and patronage during the year under review.

BY ORDER OF THE BOARD FOR KAMADGIRI SYNTHETICS LIMITED Sd/-

PRADIP KUMAR GOENKA

CHAIRMAN &MANAGING DIRECTOR

Date:August 31,2010

Place:Mumbai