No material change has been incurred after close of the year
till the date of this report, which have effect the financial
position of the Company. The State of affairs of the Company
is disclosed in the “Management Discussion & Analysis” section
which forms part of this report.
Outlook
While soaring aspirations has been an important ingredient for
increasing offtake, the primary trigger has been the significantly
enhanced tile availability. This has worked towards making the
product more affordable.
Hence, what was once considered a rich man’s foot-step luxury
has now transcended into an Indian’s regular wall and flooring
solution. While this change remained concentrated in metros
and urban India in earlier years, this transformation is currently
sweeping Tier II and Tier III towns in India.
Growth drivers
The Indian tile industry is poised to experience significant
growth over the coming year. This optimism stems from the
important realities that are expected to catalyse tile demand
pan-India.
The housing sector is expected to report reasonably good
growth over the medium term primarily catalysed by the
Government’s policies namely ‘Housing for All’, “Swachh
Baharat Abhiyan”, ,the Real Estate Regulator Bill, the ‘Smart
City’ initiative and the Shyama Prasad Mukherji urban Mission.
In addition, the softening of the interest rates by the RBI is
expected to stimulate housing sector growth.
Further, recommendations in the Union Budget 2016-17 and
the announcements by the 7th Pay Commission are expected
to increase the disposable income in the hands of the average
Indian which is expected to provide considerable impetus to tile
offtake across India.
For a detailed review on the growth drivers of the Indian tile
industry, we request you to go to “Management Discussion &
Analysis” section.
Consolidated Financial Statements
The Consolidated Financial Statements of the Company
prepared in accordance with the SEBI (Listing Obligations
and Disclosure Requirements) Regulations 2015 (SEBI (LODR)
Regulations, 2015) and applicable Accounting Standards issued
by the Institute of Chartered Accountants of India, forms part
of this Annual Report.
Holding, Subsidiaries, Associate Companies and
their performance
During the year under review, M/s Floera Ceramics Private
Limited has become the subsidiary of the Company. During the
year under review, there is no Company who ceases to be the
subsidiary of the Company.
A report on performance and financial position (form AOC-1)
of each of the subsidiaries as per the Companies Act 2013 is
provided as Annexure-I.
Dividend
Your Directors have recommended a dividend of Rs. 5.00 (i.e
250%) on equity shares (previous year Rs. 4.00 per equity share)
of face value of Rs. 2 each fully paid-up for the financial year
ended on 31st March 2016. The total payout will be Rs. 47.83
Crores (including dividend distribution tax of Rs. 8.09 Crores).
The dividend payout for the year under review has been
formulated in accordance with the Company’s Policy to pay
sustainable dividend linked to long term growth objectives of
the Company to be met by internal cash accruals.
Share Capital
The Authorised Share Capital of the Company is Rs. 35 Crores
comprising of 12.50 Crores of equity shares of Rs. 2 each and
10 Lakh preference shares of Rs. 100 each. The paid up equity
share capital of the Company as on 31st March 2016 was Rs.
15.89 Crores divided into 7,94,69,000 equity shares of Rs. 2
each.
During the year under review, the Company has not issued
shares with differential voting rights. As on March 31, 2016,
none of the Directors of the Company hold instruments
convertible into equity shares of the Company.
Employee Stock Option Scheme (ESOP)
The members of the Company had approved the Employees
Stock Options Scheme 2015 (ESOS 2015) on 7th September
2015 for issue and allotment of options exercisable into not
more than 531000 (Five lakhs thirty one thousand) equity shares
of face value of Rs. 2 each to eligible employees of the Company
and its subsidiaries. Each option when exercised would be
ANNUAL REPORT 2015-16
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