Consolidated Cash FlowStatem ent86Consolidated Statem ent of Profit & Loss85Consolidated Balance Sheet84AuditorsReport on Consolidated Financial Statem ents79N otes form ing part of Financial Statem ents56Cash FlowStatem ent54Statem ent of Profit & Loss53Balance Sheet52AuditorsReport48Corporate G overnance Report37D irectors Report13M anagem ent D iscussion and Analysis32N otes form ing part of Consolidated Financial Statem ents88In an expanding m arket that sawcom petition increasing w ith newplayers and m ore collaborations, Kokuyo Cam lin continued on its strategic grow th plans, launching newproducts, revam ping branding and packaging and w idening its reach using both electronic and digital platform . The continued efforts and focus of the Com pany are reflected in the substantial im provem ents in both revenue and profits during the year. EXECUTE. ENGAGE. EXPAND.2014-15 HAS BEEN A YEAR OF RECOVERY AT KOKUYO CAMLIN LTD.Today, Kokuyo Cam lin stands poised to leverage its unm atched consum er connect, its strong brand equity, extensive product portfolio and deep distribution netw ork reaching every corner in the country to accelerate its grow th further by continuing to...1OVER THE LAST FEW YEARS, THE FOCUS OF KOKUYO CAMLIN HAS BEEN TO EXECUTE PLANS. EXECUTE PROJECTS. EXECUTE PROGRESS.The extensive product range com prises of inks, colours, w riting instrum ents, technical and draw ing instrum ents, office stationery products, m arkers, fine art, scholastic and hobby art m aterials. W ork has begun in full swing at the state of the art m anufacturing plant at the Patalganga Industrial area in M ID C. The construction was started in January 2015. Spread over an area of 14 acres, this m anufacturing plant will put the Com pany into a different league altogether by creating one of the advanced m anufacturing capacity, equipped with latest technology and m achines, with m odern processes and techniques.M anufacturing is the critical key for any business, and at Kokuyo Cam lin, m anufacturing is at the core of the Com panys strategic grow th plans. The Com pany has undertaken the decision to enhance its m anufacturing capacities and is com ing up w ith an integrated m anufacturing plant at addl Patalganga. This decision w as aim ed at boosting the Com panys overall m anufacturing strength that create trem endous advantages em anating fromthe econom ies of size, scale and scope.TODAY, THE COMPANYS PRODUCT PORTFOLIO HAS OVER 2500 SKUS THAT ADDRESS THE WIDE AND VARIED NEEDS OF THE THREE BROAD SEGMENTS: School and Education ProductsFine Art and H obby M aterialsO ffice Stationery Products2DURING THE YEAR 2014-15,WORK AT THE NEW SITE AT ADDL PATALGANGA COMMENCED.THE PROJECT IS EXPECTED TO BECOME OPERATIONAL IN THE SECOND HALF OF 2016.Bhoom i Pujan Cerem ony by Industries M inister M r. Subhash D esai Layout of Integrated M anufacturing plant at M ID C, Additional Patalganaga3KOKUYO CAMLIN HAS BEEN INCREASING ITS CONNECT WITH THE KEY STAKEHOLDERS WITH A CONTINUOUS AND COMMITTED EFFORT TO ENGAGE CONSUMERS. ENGAGE PARTNERS. ENGAGE EMPLOYEES. IN ANY BUSINESS, CONNECTING WITH THE KEY STAKEHOLDERS IS CRITICAL TO THE SUSTAINING GROWTH AND PERFORMANCE. AT KOKUYO CAMLIN, IT HAS BEEN OUR CONSTANT ENDEAVOUR TO ENGAGE WITH THE MAIN STAKEHOLDERS CONSUMERS, PARTNERS AND EMPLOYEES.CONSUMERSKokuyo Cam lin has taken m arketing initiatives to ensure that Cam el & Cam lin are not only the oldest stationery brands in the country, but are the favourite brands for todays consum ers, by engaging w ith themin the m ost effective w ay.Cam lin clearly defined its brand prom ise and philosophy m aking learning fun for children. Lets have funis the ethos of our brand. The entire brand w orld including product, packaging, com m unication and activities to engage w ith consum ers w ere designed w ith this brand ethos.The Cam el Art Contest w as m ade even bigger w ith participation of m ore than 7.5 m illion children. For the first tim e, the contest w ent international w ith the effective use of digital m edia. W e got enthusiastic participation of children fromcountries like U SA, N epal, Sri Lanka, Singapore and Bangladesh, besides India.The Kokuyo Cam lin w ebsite w as revam ped and the Facebook page w as created, w hich, w ithin a short tim e overtook all brands in the category of stationery products to have the largest fan base on Facebook.Todays children are grow ing up in the technology w orld of com puters, tablets and cellphones. Instead of considering technology as a com petitor, w e used it to prom ote colouring am ongst children by creating a m obile application called Cam lin ExperientialApp, w hich provides an alm ost real life experience of various colour products to the tech savvy young consum ers. W e find that post usage of Cam lin ExperientialApp, the children develop interest in actual colour products. This application has w on several aw ards including the m ost prestigious m arketing aw ard of India The ABBY aw ard.4DEALER NETWORK/DISTRIBUTIONW ith an intricate netw ork of distributors, the Com pany ensures its products are available in every part of the country. D uring the year, the Com pany continued its engagem ent w ith its distributors through regular dealer m eets to keep this key distribution channel engaged. D iversification of vendor base w as also an im portant initiative started during the year. CAMLIN LETS HAVE FUNTHE BRAND POSITIONING WAS CHANGED DURING THE YEAR TO COMMUNICATE THAT SCHOOL AND WORKPLACES CAN BE MORE FUN WITH CAMLIN. THE COMPANY WON THE PRESTIGIOUS ABBY AWARD FOR CAMLIN EXPERIENTIAL APPEMPLOYEE ENGAGEMENTAt the heart of Kokuyo Cam lin are its em ployees, w ho are the real driving force behind the Com panys grow th and progress. The year 2014-15 sawem ployee engagem ent at newheights. The Com pany introduced m odern perform ance m anagem ent system s covering all em ployees across India. A very structured and training calendar w as also put in place w hich is driving focused investm ents for upscaling skills, learning and developm ent.AWARDSKO KU YOCAM LINhas w on several industry aw ards during the last year: ABBY award for Cam lin Experiential App ASIAS M O ST PRO M ISIN GBRAN Din stationery category by W CRC (W orld Consulting and Research Corporation) D M AI Aw ard for Cam lin Experiential Application D M AI aw ard for Kokuyo Cam lin w ebsite D AIN IK BH ASKER IN K AW ARD S for interactive Press advertising Cam lin Childrens day aw ardTM5Making learning funfor generations.www.kokuyocamlin.com/KokuyoCamlinMECHANICALPENCILSGEOMETRYBOXESGLASSCOLOURSWATERCOLOURSCOLOURPENCILSGLUEOFFICEPRODUCTSCRAYONS RANGEFOUNTAINPENSMARKERSRANGEMaking learning funfor generations.www.kokuyocamlin.com/KokuyoCamlinMECHANICALPENCILSGEOMETRYBOXESGLASSCOLOURSWATERCOLOURSCOLOURPENCILSGLUEOFFICEPRODUCTSCRAYONS RANGEFOUNTAINPENSMARKERSRANGEKOKUYO CAMLIN CONTINUES MOVING AHEAD ON ITS GROWTH TRAJECTORY, EXPANDING ITS RANGE OF PRODUCTS, EXPANDING ITS GEOGRAPHICAL REACH AND EXPANDING ITS MARKETS.Making learning funfor generations.www.kokuyocamlin.com/KokuyoCamlinMECHANICALPENCILSGEOMETRYBOXESGLASSCOLOURSWATERCOLOURSCOLOURPENCILSGLUEOFFICEPRODUCTSCRAYONS RANGEFOUNTAINPENSMARKERSRANGEMaking learning funfor generations.www.kokuyocamlin.com/KokuyoCamlinMECHANICALPENCILSGEOMETRYBOXESGLASSCOLOURSWATERCOLOURSCOLOURPENCILSGLUEOFFICEPRODUCTSCRAYONS RANGEFOUNTAINPENSMARKERSRANGEKokuyo Cam lin effectively w orked tow ards expanding the brand aw areness am ongst the consum ers through the use of m ass m edia TV.The m echanical pencil cam paign targeted at upgrading children of w ooden pencils as m echanical pencil provide themw ith a better and uninterrupted w riting experience. The cam paign w itnessed a great response w ith an unprecedented 56%grow th for m echanical pencils.The digital m edia helped in expanding the reach of Cam el Art Contest fromearlier level of 5.0 m illion to 7.5 m illion last year.Kokuyo Cam lin also launched newproducts to expand its newconsum ers base prem iumsegm ent G eo Boxes like Cam lin G alaxy & Cam lin Ikon, econom y segm ent G eo Box like Cam lin Cham p, fast w riting m echanical pencil Cam lin Speedy and w orld class Kokuyo products such as files, folders and scissors.AS THE OVERALL STATIONERY MARKET EXPANDS AT AN EXCITING PACE, AT KOKUYO CAMLIN, WE WILL CONTINUE TO EXPAND IN THE COMING YEARS WITH NEW PRODUCTS, WIDER REACH AND DEEPER PRESENCE TO MORE MARKETS, BOTH WITHIN INDIA AND ABROAD. 7CAMLIN KIDS POWER is a social aw areness initiative of Kokuyo Cam lin that uses art, m usic and progressive learning techniques to gain an understanding into im portant social issues. Every m onth the teamapproaches a newissue and Conducts an activity, and m akes it reach across the country w ith the help of social m edia. Som e of activities already conducted are Sw achh Bharat, Anti Bullying Initiative, Recycling and use etc.SWACHH BHARATThe Sw achh Bharat cam paign w asconducted at D haravi in M um bai. The aimof the cam paign w as to influence the youngchildren in D haravi and m ake themaw areof public health and howthey cancontribute to m ake India cleaner and safer. The activity w as prom oted on the social m edia in an engaging contest to spread aw areness across the country.ANTI-BULLYING INITIATIVEBullying is a m ajor social problemin m anyschools across India. As part of its antibullying initiatives, the Cam lin Kids Pow er teamconducted w orkshops in the schools at D elhi, w here young kids w ere m ade aw are of the preventive m easures andcures of bullying through fun and interactivew orkshops.8RECYCLE AND REUSEU nder Cam lin Kids Pow er Initiative Kokuyo Cam lin did a w orkshop to educate children of Angel Foundation on H owto Recycle and Reusew ith fun engaging activities and by using Cam lin Products. It w as an am azing experience to w atch these kids participate w ith great enthusiasm . The activity w as also prom oted on the social m edia.WORLD ENVIRONMENT DAYO n the W orld Environm ent D ay, the Com pany carried out plantation drives at all its factory locations and surroundings.CHILDRENS DAYLets m ake learning funw as the them e w ith w hich Kokuyo Cam lin carried out various activities across India on Childrens D ay. Essay com petitions, puppet show s and television cam paign w ere undertaken on this day. The senior m anagem ent spent the day w ith the underprivileged children.91011CHAIRMAN EMERITUSM r. Subhash D andekarBOARD OF DIRECTORSM r. D ilip D andekar (Chairm an & Executive D irector)M r. Takuya M orikaw a (Sr. Vice Chairm an & N on Executive D irector)M r. ShriramD andekar (Vice Chairm an & Executive D irector)M r. Yasushi Inoue (N on Executive D irector)M r. Takeo Iguchi (Executive D irector)M r. N obuchika D oi (Executive D irector)INDEPENDENT DIRECTORSM r. Shishir D esaiM r. Ram anathan SriramM r. D evendra Kum ar AroraM r. H isam aro G aruguM r. Venkataram an SriramM s. Aparna Piram al RajeCHIEF EXECUTIVE OFFICERM r. Ayyadurai SrikanthCHIEF FINANCIAL OFFICERM r. Chetan BadalVICE PRESIDENT (CORPORATE) &COMPANY SECRETARYM r. Ravindra D am leREGISTERED OFFICEH ilton H ouse, 48/2, Central Road, M .I.D .C.,Andheri (East), M um bai 400 093.WORKSTarapur : M .I.D .C., Boisar, Tarapur,D ist. - Thane 401 506.Taloja : M .I.D .C., Taloja, N avi M um bai 410 208.Jam m u : Industrial G row th Center, Sam baPhase I, Jam m u, J&K State.101, G angyal Industrial Area, Phase II,Jam m u 180 004.Vasai : Rajprabha U dyog N agar, W alive,Vasai (East), D ist. - Thane 401 308.AUDITORSM /s. B. K. Khare & Co.Chartered Accountants M um baiBANKERSM izuho Bank Ltd.The Bank of Tokyo-M itsubishi U FJ Ltd.REGISTRAR & TRANSFER AGENTSM /s. Sharepro Services (India) Pvt. Ltd.U nit : Kokuyo Cam lin Lim ited13 AB, Sam hita W arehousing Com plex, 2nd FloorN ear Sakinaka Telephone Exchange, Andheri Kurla Road, Sakinaka, Andheri (E), M um bai 400 072.Ph. N os. (022) 67720300, 67720400AUDIT COMMITTEEM r. Shishir D esai Chairm anM r. Venkataram an Sriram-M em berM r. Ram anathan Sriram-M em berM r. Takuya M orikaw a-M em berSTAKE HOLDER RELATIONSHIP COMMITTEEM r. Ram anathan SriramChairm anM r. D evendra Arora M em berM r. ShriramD andekar M em berREMUNERATION & NOMINATION COMMITTEEM r. Shishir D esai - Chairm anM s. Aparna Piram al Raje M em berM r. H isam aro G arugu M em berM r. D ilip D andekar- M em berCORPORATE SOCIAL RESPONSIBILITY COMMITTEEM r. Ram anathan SriramChairm anM r. N obuchika D oi M em berM r. ShriramD andekar M em ber12ANNUAL REPORT 2014-1513Directors Report to the MembersYourDirectorstakepleasureinpresentingherewith the68thAnnualReporttogetherwiththeAudited FinancialstatementsfortheFinancialYearended 31st March, 2015.FINANCIAL RESULTS (Standalone):(` in Lacs)2014-15 2013-14Revenuefromoperations (net)54,387.93 46,814.51Prot/(Loss) Before Tax 428.12 (1323.49)Less: Provision for Tax Current Deferred(64.27) (166.29) Prior Years (Net) 1.10Prot/(Loss) After Tax 492.39 (1158.30)Balanceboughtforward from last year (183.53) 974.77Balance Carried forward 308.86 (183.53)OPERATING PERFORMANCE:DuringtheyeartheCompanyreportednetsaleof ` 54387.93 Lacs as compared to ` 46814.51 Lacs for thelastyearrepresentingarobustvaluegrowthof 16.18% over the corresponding period of the previous year.Thefocusedapproachofgrowingprotable business alongwith major steps taken in the areas of marginimprovementandcostcontrolhaveresulted inthebetterperformanceoftheCompanyatthe EBITA level for the year as compared to previous year. AsaresultofthisyourCompanycouldachievea Protaftertaxof`492.39LacsasagainsttheLoss of ` 1158.30 Lacs in the corresponding period of the previous year.Giventhegrowthrequirementsofthebusiness andtheabsenceofsufcientprots,yourDirectors donotrecommendanydividendforthenancial year 2014-15.Your Company looks forward to further strengthen its performanceinthecomingyears. Theperformance review,outlookandstrategyhavebeenspeltoutin depthintheManagementDiscussionandAnalysis Report which forms part of this Directors Report.SHARE CAPITAL:Duringtheyearunderreview,therewasnochange inthesharecapitalstructureandthepaidup capitaloftheCompanyason31stMarch,2015was ` 1003.04 Lacs.MEETINGS:DuringtheyearveBoardMeetingsandfourAudit CommitteeMeetingswereconvenedandheld. ThedetailsofwhicharegivenintheCorporate GovernanceReport.Theinterveninggapbetween the Meetings was within the period prescribed under the Companies Act, 2013.MANAGEMENT DISCUSSION AND ANALYSIS:InaccordancewithClause49oftheListing AgreementwithStockExchanges,theManagement DiscussionandAnalysisReportispresented inaseparatesectionformingpartoftheAnnual Report.DIRECTORS RESPONSIBILITY STATEMENT:Pursuanttotherequirementundersection134(3)(c) of the Companies Act, 2013, your Directors to the best of their knowledge and belief and according to the information and explanations obtained by them, hereby conrm:a)That in the preparation of the annual accounts forthenancialyearended31stMarch,2015, the applicable accounting standards had been followed along with proper explanation relating to material departures;b)That the directors had selected such accounting policiesandappliedthemconsistentlyand madejudgmentsandestimatesthatare reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the nancial year ended 31st March, 2015andoftheprotofthecompanyforthe year ended on that date.c)Thatthedirectorshadtakenproperand sufcient care for the maintenance of adequate accountingrecordsinaccordancewiththe provisionsofthisActforsafeguardingthe assetsofthecompanyandforpreventingand detecting fraud and other irregularities;KOKUYO CAMLIN LIMITED14d)Thatthedirectorshadpreparedtheannual accounts on a going concern basis; ande)Thatthedirectors,hadlaiddowninternal nancialcontrolstobefollowedbythe companyandthatsuchinternalnancial controlsareadequateandwereoperating effectively.f)Thatthedirectorshaddevisedpropersystems toensurecompliancewiththeprovisionsofall applicablelawsandthatsuchsystemswere adequate and operating effectively.PERFORMANCE EVALUATION OF THE DIRECTORS: PursuanttotheprovisionsoftheCompaniesAct, 2013andClause49oftheListingAgreement,the RemunerationandNominationCommitteehaslaid downthecriteriaforperformanceevaluationof Board of Directors (Including Independent Directors), KeyManagerialPersonnel(KMPs)andCommittees oftheBoardonthebasisofwhichtheyhavebeen evaluated. REMUNERATION POLICY:TheBoardhas,ontherecommendationofthe Remuneration and NominationCommittee framed a policyforselection,appointmentandremuneration ofDirectorsandKMPs.TheRemunerationPolicyis stated in the Corporate Governance Report.PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:ThedetailsofLoans,GuaranteesandInvestments coveredundersection186oftheCompaniesAct, 2013 are given in the notes to nancial statements.RELATED PARTY TRANSACTIONS:Allrelatedpartytransactionsthatwereenteredinto duringthenancialyearwereonanarmslength basisandwereintheordinarycourseofbusiness. Therearenomateriallysignicantrelatedparty transactionsmadebytheCompanywithPromoters, Directors,KMPswhichmayhaveapotentialconict with the interest of the Company at large.AllRelatedParty Transactionsareplacedbeforethe Audit Committee as also the Board for approval. Prior omnibus approval of the Audit Committee is obtained onaquarterlybasisforthetransactionswhichare ofaforeseenandrepetitivenature. Thetransactions enteredintopursuanttotheomnibusapprovalso grantedareauditedandastatementgivingdetails of all related party transactions is placed before the Audit Committee and the Board of Directors for their approval on a quarterly basis. ThedetailsoftransactionwithRelatedParties areprovidedintheaccompanyingnancial statements. ThepolicyonRelatedParty Transactions asapprovedbytheBoardisuploadedonthe Companys website.None of the Directors has any pecuniary relationships or transactions vis--vis the Company.DIRECTORS:IntermsoftheprovisionsoftheCompaniesAct, 2013,Mr.NobuchikaDoiandMr.TakuyaMorikawa, DirectorsoftheCompany,retirebyrotationatthe ensuing AnnualGeneralMeeting(AGM)andbeing eligible, offer themselves for re-appointment.Mr.NoriyukiWatanaberesignedasanIndependent DirectoroftheCompanyw.e.f.17thOctober,2014. TheBoardhasplacedonrecorditsappreciation forthecontributionmadebyMr.Noriyuki Watanabe during his tenure of ofce.Pursuant to Sections 149 and 161 of the Companies Act,2013andintermsofClause49oftheListing Agreement, the Board of Directors had at its meeting heldon20thAugust,2014,appointedMs.Aparna Piramal Raje as an Additional Director (Independent) of the Company w.e.f. 1st October, 2014. The requisite resolutionforapprovalofherappointmentasan Independent Director is being proposed in the notice of the ensuing AGM for the approval of the members.The Company has received declarations from all the IndependentDirectorsoftheCompany,conrming thattheymeetwiththecriteriaofindependenceas prescribed both under sub-section (6) of Section 149 of the Companies Act, 2013 and under Clause 49 of the Listing Agreement with the Stock Exchanges.NoneoftheDirectorsaredisqualiedfrombeing appointed as Directors as specied in section 164 of Companies Act, 2013. The prole of Directors seeking appointment/re-appointmentformspartofthe Corporate Governance Report.ANNUAL REPORT 2014-1515AUDITORS:M/s.B.K.Khare&Co.,CharteredAccountants (FRN:105102W)Mumbai,StatutoryAuditorsofthe Company hold ofce till the conclusion of the ensuing AnnualGeneralMeetingandbeingeligiblehave offeredthemselvesforre-appointmentasStatutory Auditors for the nancial year 2015-16.The Company has received a letter from them to the effectthattheysatisfythecriteriaprovidedunder Section 141 of the Companies Act, 2013 and that the appointment,ifmade,shallbeinaccordancewith the applicable provisions of the Companies Act, 2013 and the rules framed thereunder.TheAuditCommitteeandtheBoardofDirectors recommendsthere-appointmentofM/s.B.K.Khare &Co.CharteredAccountants,astheAuditorsof theCompanyinrelationtothenancialyear2015-2016tilltheconclusionofthenextAnnualGeneral meeting.There-appointmentproposediswithin thetimeframefortransitionunderthethirdproviso tosub-section(2)ofSection139oftheCompanies Act, 2013.AUDITORS REPORT:TheobservationoftheAuditorsintheirreport,read withrelevantnotestotheaccountsareself-explanatoryandthereforedonotrequirefurther explanations.DEPOSITS:Duringtheyearunderreview,yourCompanyhas notacceptedanydeposits. Therearenounclaimed deposits as on date.CORPORATE GOVERNANCE:Your Company has always endeavored to adhere to high standards of Corporate Governance and ensured its compliance both in spirit and law. As per Clause 49 of the Listing Agreement with the Stock Exchanges, a separate section on corporate governance practices followed by the Company, together with a certicate fromthePractisingCompanySecretary,M/s.J.H. Ranade&Associatesconrmingcomplianceforms an integral part of this Report. COST AUDIT REPORT:TheCompanyhadappointedM/s.VinayMulay &Co.asCostAuditorforthenancialyearended 31stMarch,2015.Butsubsequentlyintermsofthe NoticationissuedbytheCentralGovernmentour productsdonotfallunderthecategoryrequiring CostAuditforthenancialyearunderreview.The CostAuditreportfortheyearended31stMarch, 2014wasdueon30thSeptember,2014andthe samewasledwithRegistraroftheCompanieson 13th August, 2014. RECONCILIATION OF SHARE CAPITAL AUDIT:AsdirectedbytheSecuritiesandExchangeBoard ofIndia(SEBI),ReconciliationofShareCapital Audit hasbeencarriedoutatthespeciedperiod,bya Practicing Company Secretary.SUBSIDIARY COMPANIES:Nonewsubsidiarywasincorporatedoracquiredby the Company during the period under review.Asinformedtoyouinourlastreport,theCompany haddivesteditsentirestakeinitssubsidiaryviz. AlphakidsLearningandActivityCentreLimited (Alphakids)(previouslyknownasCamlinAlphakids Limited)bysaleofitsentireEquityandPreference Shareholding to the Related Party. The Company had sought members approval in the last Annual General Meeting held on 17th July, 2014. As a result of the said sale of shares, Alphakids ceased to be our subsidiary w.e.f. 1st April, 2014. PursuanttotheprovisionsofSection129(3)ofthe Companies Act 2013, a statement containing salient featuresofthenancialstatementsofsubsidiary/associate company in Form AOC-1 is attached to the nancial statements of the Company.InaccordancewithSection136oftheCompanies Act 2013 , the audited nancial statements, including theconsolidatednancialstatementsandrelated informationoftheCompanyandauditedaccounts ofitssubsidiaryareavailableonourwebsite www.kokuyocamlin.com.CONSOLIDATED FINANCIAL STATEMENTS:YourDirectorshavepleasureinattachingthe ConsolidatedFinancialStatementspursuant toClause32oftheListingAgreemententered intowiththeStockExchangesandprepared inaccordancewiththeAccountingStandards KOKUYO CAMLIN LIMITED16prescribed by the Institute of Chartered Accountants ofIndia,inthisregardandformspartofthe Annual Report.INVESTOR EDUCATION AND PROTECTION FUND:TheCompanyhadtransferredasumof`2.41Lacs duringthenancialyeartotheInvestorEducation andProtectionFundestablishedbytheCentral Government.Thesaidamountrepresentsprincipal amountofxeddeposit,interestonxeddeposit whichremainunclaimedandUnclaimedDividend fortheyear2006-07withtheCompanyforaperiod of 7 years from their respective due dates of payment.ADEQUACY OF INTERNAL FINANCIAL CONTROLS: TheCompanyhasitsownprocessdrivenframework forInternalFinancialControls(IFC).Fortheyear ended31stMarch,2015,theBoardisoftheopinion that the Company has sound IFC commensurate with the nature and size of its business operations; wherein controlsareinplaceandoperatingeffectivelyand nomaterialweaknessesexist.TheCompanyhasa process in place to continuously monitor the existing controls and identify gaps, if any, and implement new and/or improved controls wherever the effect of such gaps would have a material effect on the Companys operation.CORPORATE SOCIAL RESPONSIBILITY (CSR):The Company believes, it has a duty and responsibility to give back to the country and the society that have enabledtheCompanytoscalegreatheights.The CompanycontinuestobeinvolvedinvariousCSR initiativesonseveralfronts.TheCompanyspreads awarenessontheimportanceofcleanlinessand hygiene amongst school children and hospitals.KokuyoCamlinsTarapurlocationhastakenan initiativeinthenameof IDEALSCHOOLPROJECTin associationwithQualityCircleForumofIndiaand Lions Club with an objective of promoting cleanliness and hygiene at the Schools in Tarapur Area.Camlin kids Power is a social awareness initiative by KokuyoCamlinthatuses Art,Musicandprogressive learningtechniquestogainanunderstanding ofimportantsocialissuewhichhadorganizeda Swachh Bharat Campaign in Dharavi slums.TheCompanyhascarriedoutthiscampaign voluntarily for the year under review as Section 135 of theCompanies Act,2013wasnotapplicabletothe Company.CODE OF ETHICS AND VIGIL MECHANISM/WHISTLE BLOWER POLICY:TheCompanyhasadoptedcodeofEthicsand businessconductwhichlaysdownprinciplesand standardsthatshouldgoverntheactionsofthe Companyandemployees.TheCompanyhasa vigilmechanismcalledWhistleBlowerPolicywith aviewtoprovideamechanismforEmployeesof theCompanytoraiseconcernsofanyviolations ofanylegalorregulatoryrequirement,incorrector misrepresentationofanynancialstatementsand reportsetc.TheCompanyiscommittedtoadhere tothehigheststandardofethical,moralandlegal conduct of business operations.TheCompanyhastakenstepstoestablishVigil MechanismforDirectorsandEmployeesofthe Company. ThedetailsofthePolicyispostedonthe website of the Company.INSURANCE:TheCompanysplant,property,equipmentsand stocksareadequatelyinsuredagainstmajorrisks. The Company also has appropriate liability insurance covers particularly for product liability. The Company hasalsotakenDirectorsandOfcersLiability Policytoprovidecoverageagainsttheliabilities arising on them.SECRETARIAL AUDIT:PursuanttotheprovisionsofSection204of theCompaniesAct,2013andTheCompanies (AppointmentandRemunerationofManagerial Personnel) Rules, 2014, the Company has appointed M/s.J.H.Ranade&Associates,armofCompany SecretariesinPracticetoundertaketheSecretarial Audit of the Company for the nancial year 2014-2015. The Secretarial Audit Report is annexed herewith. The report does not contain any qualications.AWARDS/RECOGNITION/RANKINGS:The Company was awarded as Asias Most Promising Brandunderthestationerycategoryintheevent titled Asias most promising Brands 2014.ANNUAL REPORT 2014-1517Our team members from Tarapur and Vasai Factory locationsalsowonGoldTrophiesattheKaizen CompetitionorganizedbyQualityCircleForumof India (QCFI).The Company also received recognition in the Indian Digital Media Awards (IDMA) 2014 with a Silver award for our website and Camlin Experience App.TheGangyalplantinJammu&Kashmirgotthe ISO 9001:2008 certication during the year.TheCompanycompleted50yearsofcolour manufacturingthisyear.Onthisoccasionaspecial exhibition titled 50 years of Camel colours was held showcasing pages from the 50 years history of colour making in India by Camel.GREEN INITIATIVE IN CORPORATE GOVERNANCE:InsupportofthegreeninitiativeoftheMinistryof CorporateAffairs,theCompanyhasalsodecided tosendtheAnnualReportthroughemailtothose shareholders who have registered their email id with the depository participant/Companys Registrar and Share Transfer Agent. In case a shareholder wishes to receiveaprintedcopyhe/shemaypleasesenda requesttotheCompanywhichwillsendthe Annual Report to the shareholder.TheCompanyisprovidinge-votingfacilityto allmemberstoenablethemtocasttheirvotes electronically on all resolutions set forth in the Notice. This is pursuant to section 108 of the Companies Act, 2013andRule20oftheCompanies(Management andAdministration)Rules,2014.Theinstructionsfor e-voting is provided in the Notice.ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:Theinformationonconservationofenergy, technologyabsorptionandforeignexchange earningsandoutgostipulatedunder Section134(3)(m)oftheCompaniesAct,2013 readwithRule,8ofTheCompanies(Accounts) Rules, 2014, is annexed herewith as Annexure A.EXTRACT OF ANNUAL RETURN:Thedetailsformingpartoftheextractofthe Annual ReturninformMGT-9isannexedherewithas Annexure B.PARTICULARS OF EMPLOYEES:TheinformationrequiredpursuanttoSection197 readwithRule,5ofTheCompanies(Appointment andRemunerationofManagerialPersonnel)Rules, 2014inrespectofemployeesoftheCompany,will be provided upon request. In terms of Section 136 of the Act,theReportand Accountsarebeingsentto theMembersandothersentitledthereto,excluding theinformationonemployeesparticularswhich isavailableforinspectionbytheMembersatthe RegisteredOfceoftheCompanyduringbusiness hoursonworkingdaysoftheCompanyuptothe dateoftheensuing AnnualGeneralMeeting.Ifany Memberisinterestedinobtainingacopythereof, suchMembermaywritetotheCompanySecretary in this regard.ACKNOWLEDGEMENT:Your Directors express their gratitude to the members, bankers,customers,nancialinstitutionsandother businessconstituentsfortheircontinuedfaith, assistanceandsupportextendedtotheCompany. YourDirectorsalsosincerelyappreciatethehigh degreeofprofessionalism,commitmentand dedicationdisplayedbyemployeesatalllevels therebycontributinglargelytothegrowthand success of the Company.YourDirectorsalsowishtoplaceonrecordtheir appreciation for the support and guidance provided by its parent Companies, Kokuyo Co. Ltd. and Kokuyo S&T Co. Ltd., Japan.For and on behalf of the BoardDILIP DANDEKARChairman & Executive DirectorPlace: MumbaiDated: 14th May, 2015.KOKUYO CAMLIN LIMITED18CONSERVATIONOFENERGY,TECHNOLOGY ABSORPTIONANDFOREIGNEXCHANGE EARNINGS AND OUTGO[SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014](A)CONSERVATION OF ENERGY(a)Energy conservation measures taken:Uscge cf Servc mclcrs in lcchines.Prcvisicncfenergyeffcienllighls(LFD) replacing conventional light ttings.lnslcllclicncfenergyscverscncir conditioners.Prevenlivemcinlencncecfvcric0s equipmentstokeepthemingood condition. Peplccemenls cf V Bells cn Ccmpresscrs by at belts.Pec0clicninpcwerccns0mplicnLy installing Variable Frequency drives.SlecmccncensecrecycleclcLciler leadingtosavinginwaterandfuel consumption.UsecfSclcrFnergyfcrprccesswcler heating.Use cf Sclcr Fnergy fcr Slreel lighl.lnslcll T0rLc venlilclcr cn Pccfs cperclec onwindtoreduceheatandalso improve shop oor ventilation.lncllfcclcrieswecrenclcischcrging treatedefuentsfromETPbutitis recycled and reused.(b) Additional Investments and proposals, if any, being implemented for reduction of consumption of energy:Installationofenergysaversinlighting systems,Introductionofpowerfactor panel to reduce the transmission near the loadpoint.Stepsarealsobeingtakento Annexure A to the Boards Reportintroduceimprovedoperationalmethods, rationalization aimed to save consumption of power and fuel.(c)Impact of the above matters:Asaresultofmeasurestaken/to betaken,enumeratedin(a)and (b)abovethereisareductionin maintenancecost,machinedowntime andtherebysavingsinunitconsumption whichhashelpedinreducingthecostof production.(B)TECHNOLOGY ABSORPTION:Research and Development (R & D):1. Specic areas in which R & D Carried out by the Company: New product development, process development.2. Benets derived as a Result of the above R & D: Cost reduction, quality up gradation, development of new markets.3. Future plan of action : Future plan of action envisages acceleration in the process of developmentalready set in motion and undertakingmore process development work for achieving cost reduction, and improvement inquality. (` in Lacs)4. Expenditure on R&D 2014-2015 2013-2014(a) Capital (b)Recurring 294.33 209.57(c)Total 294.33 209.57(d)Total R&D Expenditure as a Percentage of total turnover0.52 0.43ANNUAL REPORT 2014-1519TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:1. Efforts made towards Technology Absorption, Adaptation and Innovation: TheCompanysR&D Laboratoryisrecognizedby theDepartmentofScientic and Industrial Research, Govt. ofIndia,wherecontinuous effortsaremadetoinnovate newproductsandimprove thequalityofArtMaterial, StationeryandAdhesive products,manufactured/procuredbytheCompany tomakethemanufacturing processsafe,costeffective and environment friendly.2. Benets derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc.: Technologicalinnovations andimprovements undertakenatthelaboratory scale have been successfully absorbedatplantlevel. Theseeffortsshallbenetthe Company in increasing sales, reducingcost,improving qualityandscaleofthe productionandcustomer satisfaction. 3. Technology Import: N.A.(C)FOREIGN EXCHANGE EARNINGS AND OUTGO:(a)Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans:MajorcountriesofexportareSAARC Countries, Middle East, Far East, CIS Regions andUSA.TheCompanyisaggressively focusinginOEMbusinessinCIScountries andbrandedbusinessinMiddleEast, SAARCandFarEastCountriesforHobby and Fine Art products. (b) Total Foreign Exchange used and earned:(` in Lacs)2014-2015 2013-2014Foreign exchange used4,470.06 3,787.74Foreign exchange earned1,309.03 961.44For and on behalf of the BoardDILIP DANDEKARChairman & Executive DirectorPlace: MumbaiDated: 14th May, 2015.KOKUYO CAMLIN LIMITED20Form No. MGT-9Extract of Annual Returnas on the nancial year ended 31st March, 2015[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]I.REGISTRATION AND OTHER DETAILS: (i)CIN L24223MH1946PLC005434(ii)Registration Date24th December,1946(iii) Name of the CompanyKokuyo Camlin Limited(iv)Category/Sub-Category of the CompanyCompany Limited by sharesIndian Non-Government Company(v) Address of the Registered ofce and contact details 48/2, Hilton House, Central Road M.I.D.C,Andheri (East),Mumbai - 400093Tel: 022-66557000 Website:www.kokuyocamlin.com(vi)Whether listed Company Yes/No Yes(vii) Name, Address and Contact details of Registrar and Transfer Agent, if any Sharepro Services (India) Private Limited13 A-B, Samhita Warehousing Complex, 2nd Floor, off Andheri Kurla Road, Sakinaka Telephone Exchange Lane, Sakinaka, Andheri (East),Mumbai - 400072Tel: 022-67720300/67720400, 022-62270300, 62270400II.PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:All the business activities contributing 10% or more of the total turnover of the Company shall be stated:Sl. No. Name and Description of main Products/ServicesNIC Code of the Product/Service% to total turnover of the Company1. Artists Colours 303.60 35.88III.PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:Sl. No. Name and Address of the CompanyCIN/GLN Holding/Subsidiary/Associate% of shares heldApplicable Section1. Camlin International Ltd. U51900MH1993PLC075140 Subsidiary 100 2872. Colart Camlin Canvas Pvt. Ltd.U17290MH2005PTC155976 Associate 40 26Annexure B to the Boards ReportANNUAL REPORT 2014-1521IV.SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)(i)Category-wise Share HoldingCategory of ShareholdersNo. of Shares held at thebeginning of the yearNo. of Shares held at theend of the year% Change During the yearA.Promoters Demat Physical Total % of total sharesDemat Physical Total % of total shares(1)IndianIndividuals/HUF 3764374 3764374 3.75 3288970 3288970 3.28 (0.47)Central Govt State Govt(s) Bodies Corporate 3902460 3902460 3.89 874860 874860 0.87 (3.02)Banks/FI Any Other SubTotal(A)(1) 7666834 7666834 7.64 4163830 4163830 4.15 (3.49)(2)Foreign NRIs-Individuals 1579050 1579050 1.57 181000 181000 0.18 (1.39)Other-Individuals Bodies Corporate 65971120 65971120 65.77 70871120 70871120 70.66 4.89Banks/FI Any Other SubTotal(A)(2) 67550170 67550170 67.35 71052120 71052120 70.84 3.49 Total shareholding of Promoter(A)=(A)(1)+(A)(2)75217004 75217004 74.99 75215950 75215950 74.99 B. Public Shareholding(1)InstitutionsMutual Funds Banks/FI 1300 3000 4300 23250 3000 26250 0.03 0.03Central Govt. State Govt(s) Venture Capital Funds Insurance Companies FIIs 3252539 3252539 3.24 1475864 1475864 1.47 (1.77) Foreign Venture Capital Funds Others (specify) SubTotal(B)(1) 3253839 3000 3256839 3.25 1499114 3000 1502114 1.50 (1.75)(2)Non-Institutions(a)Bodies Corporate. 2828182 21000 2849182 2.84 3540400 21000 3561400 3.55 0.71(b)Individuals (i)Individual Shareholders holding nominal share capital upto ` 1 lakh12515564 2318699 14834263 14.79 13012637 2263693 15276330 15.23 0.44(ii)Individual shareholders holding nominal share capital in excess of ` 1 lakh3622333 258000 3880333 3.87 4179259 258000 4437259 4.42 0.55KOKUYO CAMLIN LIMITED22Category of ShareholdersNo. of Shares held at thebeginning of the yearNo. of Shares held at theend of the year% Change During the year(c)Others (Specify)(i)NRI (Non-Rep) 56668 56668 0.06 53796 53796 0.05 (0.01)(ii)NRI (Rep) 182017 2000 184017 0.18 252957 2000 254957 0.25 0.07(iii)Trust 25500 25500 0.03 2000 2000 0.00 (0.03)SubTotal (B)(2) 19230264 2599699 21829963 21.76 21041049 2544693 23585742 23.51 1.75Total Public Shareholding (B)=(B)(1)+(B)(2)22484103 2602699 25086802 25.01 22540163 2547693 25087856 25.01 Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C) 97701107 2602699 100303806 100.00 97756113 2547693 100303806 100.00(ii)Shareholding of PromotersSl. No.Shareholders Name Shareholding at the beginning of the yearShareholding at the end of the year% Change in shareholding during the YearNo. of Shares% of total Shares of the Company%of Shares Pledged/encumbered to total sharesNo. of Shares% of total Shares of the Company%of Shares Pledged/encumbered to total shares1. Kokuyo S&T Co., Ltd. 65971120 65.77 70871120 70.66 4.892. Shriram Sharad Dandekar 1343870 1.34 1343870 1.34 3. Dilip Digambar Dandekar 768200 0.77 768200 0.77 4.Dandekar Developers Private Limited614860 0.61 614860 0.61 5. Rahul Dilip Dandekar 524250 0.52 364900 0.36 (0.16)6. Kanchan Dipen Gokhale 311000 0.31 181000 0.18 (0.13)7. Dandekar Investments & Consultants Pvt Ltd260000 0.26 260000 0.26 8. Aparna Upendra Kanitkar 235000 0.23 160000 0.16 (0.07) 9. D D Dandekar HUF 126000 0.13 126000 0.13 10 Subhash Digambar Dandekar 200000 0.20 200000 0.20 11. Aditi Dilip Dandekar 206000 0.21 81000 0.08 (0.13)12. Neelima Vilas Divekar 295000 0.29 180000 0.18 (0.11)13. Nikhil Shriram Dandekar 65000 0.06 65000 0.06 14. Ashwini Ravindra Datar 1054 0.00 (0.00)15. Anagha Subhash Dandekar 733000 0.73 (0.73)16. Ketki Amit Sawant 535050 0.53 (0.53)17. Camart Finance Ltd. (Formerly known as Camart Industries Ltd.)2091600 2.09 (2.09)18. Cafco Consultants Limited 936000 0.93 (0.93)TOTAL 75217004 74.99 75215950 74.99 (i)Category-wise Share Holding (contd.)ANNUAL REPORT 2014-1523(iii)Change in Promoters Shareholding (please specify, if there is no change)Sl. No.Name of the promoter Shareholding at the beginning of the yearCumulative Shareholdingduring the yearNo. of Shares % of total Shares of the companyNo. of Shares % of total Shares of the company1. Ashwini Ravindra DatarAt the beginning of the year Market sale as on 5th September, 2014.At the end of the year1054(1054)0.00(0.00)10540.002. Anagha Subhash DandekarAt the beginning of the year Inter-se transfer as on 18th February, 2015At the end of the year733000(733000)0.73(0.73)7330000.733. Ketki Amit SawantAt the beginning of the year Inter-se transfer as on 18th February, 2015At the end of the year535050(535050)0.53(0.53)5350500.534. Kanchan Dipen GokhaleAt the beginning of the year Inter-se transfer as on 18th February, 2015At the end of the year311000(130000)0.31(0.13)3110001810001810000.310.180.185. Rahul Dilip DandekarAt the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year524250(159350)0.52(0.16)5242503649003649000.520.360.366. Aparna Upendra KanitkarAt the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year235000(75000)0.23(0.07)2350001600001600000.230.160.167. Aditi Dilip DandekarAt the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year206000(125000)0.21(0.12)20600081000810000.210.080.088. Neelima Vilas DivekarAt the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year295000(115000)0.29(0.11)2950001800001800000.290.180.189.Camart Finance Ltd. (Formerly known as Camart Industries Ltd.)At the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year 2091600(2091600)2.09(2.09)20916002.0910. Cafco Consultants LimitedAt the beginning of the year Inter-se transfer as on 22nd December, 2014At the end of the year936000(936000)0.93(0.93)9360000.9311. Kokuyo S&T Co., Ltd.At the beginning of the year Inter-se transfer as on 22nd December, 2014Inter-se transfer as on 18th February, 2015At the end of the year659711203501950139805065.773.501.396597112069473070708711207087112065.7769.2770.6670.66KOKUYO CAMLIN LIMITED24(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters andHolders of GDRs and ADRs):Sl. No.Top Ten Shareholders Shareholding at the beginningof the yearCumulative Shareholdingduring the yearNo. of Shares % of total Shares of the companyNo. of Shares % of total Shares of the company1. New Vernon India LimitedAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3252539(1776675)3.24(1.77)3252539147586414758643.241.471.472. Girish S. ApteAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year6781230.686781236781236781230.680.680.683. Sanjay Shared Kumar SatheyAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year504663(183888)0.50(0.18)5046633207753207750.500.320.324. Ramesh DamaniAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year423464(48464)0.42(0.05)4234643750003750000.420.370.375. Pulkit N. SekhsariaAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3528870.353528873528873528870.350.350.356. Vijay V. WadhwaAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3500000.353500003500003500000.350.350.357. Ragini Finance Ltd.At the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3454300.343454303454303454300.340.340.348. OHM Stock Broker Pvt. Ltd.At the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year291615(291615)0.29(0.29)2916150.299. Indus Securities Ltd.At the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year264014(264014)0.26(0.26)2640140.2610. Barry Raphel DcunhaAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year223961(223961)0.22(0.22)2239610.2211. SudhirAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3130000.313130003130000.310.3112. Benu Gopal BangurAt the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year3126000.313126003126000.310.3113. Param Capital Research Pvt. Ltd.At the beginning of the yearIncrease/Decrease upto 31st March, 2015At the end of the year2576490.262576492576490.260.26ANNUAL REPORT 2014-1525(v)Shareholding of Directors and Key Managerial Personnel:Sl. No.Name of Directors and KMP Shareholding at the beginningof the yearCumulative Shareholding during the yearNo. of Shares % of total Shares of the companyNo. of Shares % of total Shares of the company1. Mr. Dilip D. DandekarAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year7682000.777682007682007682000.770.770.772. Mr. Shriram S. DandekarAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year13438701.341343870134387013438701.341.341.343. Mr. Takuya MorikawaAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year4. Mr. Nobuchika DoiAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year5. Mr. Takeo IguchiAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year6. Mr. Shishir B. DesaiAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year7. Mr. Ramanathan SriramAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year8. Mr. Hisamaro GaruguAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year9. Mr. Devendra Kumar AroraAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year10. Mr. Venkataraman Sriram At the beginning of the year increase/decrease in shareholding during the yearAt the end of the year11. Mr.Yasushi Inoue At the beginning of the year increase/decrease in shareholding during the yearAt the end of the yearKOKUYO CAMLIN LIMITED26Sl. No.Name of Directors and KMP Shareholding at the beginningof the yearCumulative Shareholding during the yearNo. of Shares % of total Shares of the companyNo. of Shares % of total Shares of the company12. Ms. Aparna D. PiramalAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year13. Mr. Ayyadurai SrikanthAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year14. Mr. Chetan BadalAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year230300.022303023030230300.020.020.0215. Mr. Ravindra V. DamleAt the beginning of the year increase/decrease in shareholding during the yearAt the end of the year286770.032867728677286770.030.030.03V.INDEBTEDNESS: Indebtedness of the Company including interest outstanding/accrued but not due for payment Secured Loans excluding depositsUnsecured LoansDeposits Total IndebtednessIndebtedness at the beginning of the nancial Year(i)Principal Amount(ii)Interest due but not paid(iii) Interest accrued but not due7118.3466.820.657118.9966.82Total (i+ii+iii) 7185.16 0.65 7185.81Change in Indebtedness during the nancial yearAdditionReduction16.000.9614.070.6530.071.61Net Change 15.04 14.07 (0.65) 28.46Indebtedness at the end of the nancial year(i)Principal Amount(ii)Interest due but not paid(iii) Interest accrued but not due15.047275.4450.427290.4850.42Total (i+ii+iii) 15.04 7325.86 7340.90ANNUAL REPORT 2014-1527VI.REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:A.Remuneration to Managing Director, Whole-time Directors and/or Manager:Sl. No.Particulars of Remuneration Name of MD/WTD/Manager Total AmountDilip Digamber DandekarShriram Sharad DandekarTakeo IguchiNobuchika DoiAyyadurai Srikanth1. Gross salary(a)Salary as per provisions contained in section 17(1)of the Income-tax Act,196171.94 60.72 42.24 42.24 41.71 258.85(b) Value of perquisites u/s. 17(2) Income-tax Act,196149.81 41.49 44.30 44.42 13.79 193.81(c)Prots in lieu of salary under section 17(3) Income tax Act, 1961 2. Stock Option 3. Sweat Equity 4. Commission as % of prot others, specify5. Others Performance linked remuneration 19.14 19.14Total (A) 121.75 102.21 86.54 86.66 74.64 471.80B.Remuneration to other directors:1.Independent Directors/Non-Executive Directors:Particulars of Remuneration Name of Directors Total AmountRamanathan SriramHisamaro GaruguShishir Babubhai DesaiAparna Dilip PiramalFee for attending board/committee meetings2.30 0.85 2.45 0.50 6.1Commission Others Total (1) 2.30 0.85 2.45 0.50 6.1Particulars of Remuneration Name of Directors Total AmountTakuya MorikawaDevendra Kumar Keshoram AroraSriram VenkataramanYasushi InoueFee for attending board/committee meetings 0.85 0.85Commission Others Total (2) 0.85 0.85TOTAL B = (1+2) 2.30 1.70 2.45 0.50 6.95KOKUYO CAMLIN LIMITED28C.REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTDSl. No. Particulars of Remuneration Key Managerial PersonnelCompany SecretaryCFO Total1. Gross salary(a)Salary as per Provisions contained in Section 17(1) of the Income-tax Act, 196120.51 36.81 57.32(b) Value of perquisites u/s 17(2) Income-tax Act, 196110.24 14.95 25.19(c) Prots in lieu of salary under Section 17(3) Income-tax Act, 1961 2. Stock Option 3. Sweat Equity 4. Commission as % of prot others, specify5. Others Incentives 2.65 4.70 7.35Total (A) 33.40 56.46 89.86VII.PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:TypeSection of The Companies ActBrief DescriptionDetails of Penalty/Punishment/Compounding fees imposedAuthority [RD/NCLT/COURT]Appeal made, if any (give Details)A.COMPANYPenaltyNone PunishmentCompoundingB. DIRECTORSPenaltyNone PunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenaltyNone PunishmentCompoundingFor and on behalf of the BoardDILIP DANDEKARChairman & Executive DirectorPlace: MumbaiDated: 14th May, 2015.ANNUAL REPORT 2014-1529Form No. MR-3SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2015[Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014]v.ThefollowingRegulationsandGuidelines prescribedundertheSecuritiesandExchange Board of India Act, 1992 (SEBI Act):-a.TheSecuritiesandExchangeBoardof India(SubstantialAcquisitionofShares and Takeovers) Regulations, 2011;b.The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;c.TheSecuritiesandExchangeBoardof India(IssueofCapitalandDisclosure Requirements)Regulations,2009;(Not applicabletotheCompanyduringaudit period);d.TheSecuritiesandExchangeBoardof India(EmployeeStockOptionScheme andEmployeeStockPurchaseScheme) Guidelines, 1999/Securities and Exchange BoardofIndia(ShareBasedEmployee Benets) regulations, 2014; (Not applicable to the Company during the audit period).e.TheSecuritiesandExchangeBoardof India (Issue and Listing of Debt Securities) Regulations,2008;(Notapplicabletothe Company during audit period);f.The Securities and Exchange Board of India (RegistrarstoanIssueandShare Transfer Agents)Regulations,1993regardingthe Companies Act and dealing with client;g.The Securities and Exchange Board of India (DelistingofEquityShares)Regulations, 2009;(NotapplicabletotheCompany during audit period);andh.TheSecuritiesandExchangeBoardof India(BuybackofSecurities)Regulations, 1998;(NotapplicabletotheCompany during audit period).vi.Asperinformationprovidedtousthereare nolawswhichspecicallyapplytothetypeof activities undertaken by the Company.To,The Members,Kokuyo Camlin Limited48/2, Hilton House, Central Road, M.I.D.C.Andheri (East), Mumbai-400 093.Wehaveconductedthesecretarialauditofthe compliance of applicable statutory provisions and the adherencetogoodcorporatepracticesbyKokuyo CamlinLimited(hereinaftercalledtheCompany). SecretarialAuditwasconductedinamannerthat providedusareasonablebasisforevaluatingthe corporateconducts/statutorycompliancesand expressing our opinion thereon.BasedonourvericationoftheCompanysbooks, papers,minutebooks,formsandreturnsledand other records maintained by the Company and also the information provided by the Company, its ofcers, agentsandauthorizedrepresentativesduringthe conductofsecretarialaudit,weherebyreport thatinouropinion,theCompanyhas,duringthe auditperiodcoveringthenancialyearendedon 31st March, 2015, complied with the statutory provisions listedhereunderandalsothattheCompanyhas proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:We have examined the books, papers, minute books, forms and returns led and other records maintained bytheCompanyforthenancialyearendedon 31st March, 2015 according to the provisions of:i.TheCompaniesAct,2013(theAct)andthe rules made thereunder;ii.TheSecuritiesContracts(Regulation) Act,1956 (SCRA) and the rules made thereunder;iii.The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;iv.ForeignExchangeManagement Act,1999and therulesandregulationsmadethereunderto theextentofremittanceofdividend,foreign directinvestmentandexternalcommercial borrowings.KOKUYO CAMLIN LIMITED30Wehavealsoexaminedcompliancewiththe applicable clauses of the following:(i)SecretarialStandardsissuedby TheInstituteof CompanySecretariesofIndia.(notapplicable as not notied during the period under review).(ii)theListingAgreementsenteredintobythe CompanywithNationalStockExchangeof India Limited and BSE Limited;DuringtheperiodunderreviewtheCompany hascompliedwiththeprovisionsoftheAct,Rules, Regulations and Guidelines, etc. mentioned above.We further report that: -TheBoardofDirectorsoftheCompanyisduly constitutedwithproperbalanceofExecutive Directors,Non-ExecutiveDirectorsandIndependent Directors.Thechangesinthecompositionofthe Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act and listing agreements.Adequatenoticeofatleastsevendaysisgivento all Directors to schedule the Board Meetings. Agenda anddetailednotesonagendaweresentgenerally seven days in advance and a system exists for seeking andobtainingfurtherinformationandclarications ontheagendaitemsbeforethemeetingandfor meaningful participation at the meeting.Majoritydecisioniscarriedthroughwhilethe dissentingmembersviews,ifany,arecapturedand recorded as part of the minutes.We further report that there are adequate systems and processes in the Company which commensurate with thesizeandoperationsoftheCompanytomonitor andensurecompliancewithapplicablelaws,rules, regulations and guidelines.Wefurtherreportthat,duringtheAuditperiod Consent of the members were accorded to the Board under section:a. 188ofthe ActforSaleof13LacsEquityshares of`10/-eachand10LacsRedeemablenon-cumulativepreferencesharesof`10/-each representing100%ofpaidupsharecapitalof AlphaKidsLearningand ActivityCentreLimited to the related parties for total cash consideration of ` 50 Lacs.b.180(1)(a)oftheActforMortgaging/Charging MovableandImmovablepropertiesofthe CompanyasasecurityinfavouroftheBanks/Lenders upto ` 150 Crores. For J. H. Ranade & AssociatesCompany SecretariesJ. H. Ranade Place: Thane (Proprietor)Date: 14th May, 2015. FCS: 4317, CP: 2520ANNUAL REPORT 2014-1531To,The Members,Kokuyo Camlin Limited48/2, Hilton House, Central Road, M.I.D.C.Andheri (East), Mumbai-400 093Our Secretarial Audit Report of even date is to be read along with this letter.MANAGEMENTS RESPONSIBILITY1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systemstoensurecompliancewiththeprovisionsofallapplicablelawsandregulationsandtoensure that the systems are adequate and operate effectively.AUDITORS RESPONSIBILITY2. Our responsibility is to express an opinion on these secretarial records, systems, standards and procedures based on our audit.3. Wherever required, we have obtained the managements representation about the compliance of laws, rules and regulations and happening of events etc.DISCLAIMER4. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efcacy or effectiveness with which the management has conducted the affairs of the Company.For J. H. Ranade & AssociatesCompany SecretariesJ. H. Ranade Place: Thane (Proprietor)Date: 14th May, 2015. FCS: 4317, CP: 2520KOKUYO CAMLIN LIMITED32Management Discussion And AnalysisECONOMIC OVERVIEWThe global economy fared moderately better in 2014 comparedto2013.AccordingtotheInternational MonetaryFunds(IMF)WorldEconomicOutlook published in the month of April 2015, the world output grewby3.4percentin2014,atthesamerateas thatin2013. AspertheGlobalEconomicProspects publishedbytheWorldBankinJanuary2015,the realGDPoftheworldgrewby2.6percentin2014 compared to 2.5 per cent in 2013.Whilegrowthintheadvancedeconomiespicked upduringtheyear,particularlyintheUSAandthe UK,therewasamarkedslowdownintheemerging markets and developing economies. In China, growth felltoa24yearoldlowat7.4percent,missingthe governments target of 7.5 per cent. In the Euro-area, theregionremainedundertheloomingshadowof uncertainty due to Greek debt-repayment issue, and whether Greece would opt out of the EU dominated headlines.Indianeconomywasonebrightspotinthe worldeconomywithastrongeconomicgrowth. In 2014, India had a change of regime at the Center with an overwhelming majority supporting the change. Thisisexpectedtoleadtostructuralandeconomic reforms.Incoresectorsoftheeconomysuchas banking,insurance,defenceandinfrastructure sectors.TheCentralStatisticsOrganization(CSO) revisedthebaseyearforcalculationforGDPfrom 2004-05 to 2010-11. According to the revised method, IndiasGDPgrowthfortheFY2014was7.4percent compared to 6.9 per cent for the FY 2013. Indias total GDPalsocrossedthethresholdUS$2trillionforthe rst time. Oneofthebigsurprisesoftheyearwasthedrastic fall in prices of oil. The Brent Crude oil prices fell to sub US$ 50 per barrel in January 2015, before stabilizing to US$ 60 per barrel in the month of April 2015. Inationduring2014-15moderatedinthesecond halfoftheyearowingtofallinoilprices.The averageConsumerPriceIndexhoveredaroundthe 5%mark,promptingtheReserveBankofIndiato easethemonetarypolicyandlowerreporatesin January 2015. INDUSTRY OVERVIEWOverthelastcoupleofyears,thestationerymarket inIndiahasevincedstronginterestfromanumber of international players as well as Indian Companies. Therapidlyburgeoningeconomyisunderpinning growthfortheofcestationerymarket.Agrowing middle-classcoupledwithhighergovernment spends on education is driving growth in the school and education segments. These promising prospects are attracting new players to the industry. Thelargesttwocategoriesinthismarketare notebooks and pens,contributing to 68% of the total market. Pencils, including the colored ones, account for 12% of the market, followed by markers, geometry boxes and crayons in terms of annual sales.Categoriessuchascrayonsandgeometryboxes haveseendoubledigitgrowth.Increasingschool enrolment,particularlypre-nurseryandnursery enrolments,isdrivinggrowthincategoriessuchas crayons. Consumer are upgrading and new products suchasmechanicalpencilsandaestheticallyand functionally improved notebooks are also witnessing growing demand. Inmostproductcategoriesofthestationerymarket, thetopthreebrandsaccountformorethanhalf themarket,whiletheunorganizedsectorcontinues todominatenotebooks,lesandscissors.Since consumersaremovingmoretowardsqualityand brand there is a sizeable market opportunity that can be tapped by reputed brands.BUSINESS OVERVIEWKokuyo Camlin Limited (the Company) is a renowned and respected name in the Indian stationery space. TheCompanyhasanunmatchedlegacy,tradition andhistoryofover80years,tracingitsorigininthe 1930s.Overtheyears,theCompanyhasbecome synonymous with quality products for schools, ofces and niche art markets. The Company has two of the most recognized and endearing brands in the country CAMELandCAMLIN.In2011,KokuyoS&TCO.,a prominentJapaneseleaderstationerycorporation, acquired a majority stake in the Company.The Companys business is broadly classied based on products manufactured into three broad segments:1.School and Education products2.Fine Art and Hobby Materials3.Ofce Stationery productsANNUAL REPORT 2014-1533Thevastrangeofproductsmanufacturedand marketed by the Company include inks, colours, writing instruments,technicalanddrawinginstruments, ofcestationery,markers,neart,notebooksand scholasticandhobbyartmaterials.Kokuyoisone oftheleadingplayersintheworldinthenotebooks category, and in the last two years, the Company has introducedKokuyonotebooksintheIndianmarkets with remarkable success.AmongtheCompanyskeystrengthsoverthelast eight decades is the extremely strong brand connect ofCAMLINandCAMELwithconsumers.Thepan-India reach and presence created by the Company ensuresthatitsproductsaremadeavailablein remotecornersofthecountrythroughanetwork of1500dealers/distributorsand300000retailers.In addition, the Company has been organizing the ALL INDIA CAMEL COLOUR CONTEST (AICCC) now CAMEL ARTCONTEST(CAC)whichhasbeenrecognizedby theGuinnessBookofWorldRecordsasthelargest Art Competition in the World in the year 2011-12, with participation of over 6601 schools and over 48.50 Lacs entries. ThesynergisticalliancewithKokuyoS&TCO. has augmented the Companys stable of products. In addition,theCompanywillalsohaveaccesstothe huge R&D capabilities of Kokuyo S&T CO., as well as its range of new and innovative products. RECENT DEVELOPMENTSAsmentionedinourlastreportyourCompany hasembarkeduponanambitiousmissiontobuild upitscapacities,capabilitiesandcompetencies. Thisisinlinewiththeincreasingcompetitive environmentintheIndianstationeryspace,as wellasinlinewiththeCompanysfuturestrategic growthplans.TheCompanythroughitsrightsissue hadraisedfundsforconstructionofstateoftheart manufacturingplantatPatalgangaIndustrial Areas of MIDC. Though the work is slightly behind schedule themanagementhopestomakeitoperationalin 2016 as per schedule. REVIEW OF PERFORMANCE DURING THE YEARDuring the year, the Company continued to augment itssalesandmarketingcapabilitiesbyfurther strengtheningitssalesforce,particularlyinthe notebooksub-segmentexpandedreachtomore outletsenhancingtradelogisticsandinvesting signicantly in sales force training. TheyearalsosawtheCompanycontinueitsfocus onrevampingthebrandingandpackagingofits productstobringincontinuityandconsistencyof thegraphicsanddesignbetweenalltheproducts, so that they look part of the same stable. In line with this,theCompanyalsoshiftedtosuperiorquality packaging materials that lend premium to the brand and products. This revamping will continue in the next year. The brand positioning was also changed during theyeartoCAMLINLETSHAVEFUN,toemphasize thatschoolandworkplacescanbemorefunwith CAMLIN. In January 2015, KOKUYO CAMLIN was awarded ASIAS MOSTPROMISINGBRANDintheStationerycategory byWorldConsultingandResearchCorporation (WCRC). The Company is among the few organisations in the stationeryspacetoleveragethedigitalmediaand reach customers. Today, we have built a strong online digitalpresenceandhaverevampedourwebsite. TheCompanyisactivelypursuingSocialmediato connect with new age users.Variousmarketingandbrandinginitiatives undertaken like the CAMEL ART CONTEST (CAC) and Handwriting Olympiad, and CSR campaigns like Write toTrees,TeachersDayCelebrations,ChildrensDay Celebrationshadadigitalpresence. Theelectronic media was also innovatively used during the Teachers DayCelebrationwhenweassociatedwithtop channels in the country. In 2014, CAC went online for the rst time, and included international participants. The Company has also been aggressively leveraging massmediaandmakingitspresencestrongeron the digital media and social platforms. The Company introduced the concept of Principals Day in February, 2015 to recognise the role of principal as a important stakeholder in the Indian Educational System. ArangeofKokuyoproductsindifferentcategories were launched by the Company in 2014. The Company continues with its strong commitment toQUALITY.TheCompanylaunchedImmigration QualityGate(IQG)inBhiwandi&Delhiduringthe year.BoththeseIGQlaboratoriesensurethatevery productgoingoutofourplantconformstothe highest standards of quality. KOKUYO CAMLIN LIMITED34REVIEW OF FINANCIAL PERFORMANCE Your Company continued to focus on optimum levels ofinventory,operatingefcienciesandcostsaving across the organisation.The analysis of major items of the nancial statements is shown below.Revenue from operations: (` in Lacs)FY 2014 FY 2015 Change %Revenue from operations 46814.51 54387.93 16.17%Theincreasewasduetoincreaseinsalesvolume and partly due to increase in selling prices of certain products.Other Income:(` in Lacs)FY 2014 FY 2015 Change %Other Income 582.09 766.73 31.72%Theincreaseisonaccountofinterestincome earned on funds raised through rights issue of equity shares,amountingto`101.56crores(netofissue expenses)whichhasbeenmaintainedinFixed Depositswithbanksuntilutilization.Thefundswere raisedinSeptember,2013andtheinterestfromthe xed Deposit was for only a part of the last scal year.Cost of Materials:(` in Lacs)FY 2014 FY 2015 Change %Cost of Materials 30152.01 34361.13 13.95%The increase is due to increase in production required forincreasedsalesandinventoryascomparedto previousyear.Theincreaseisproportionatelylower tosalesduetoimprovedproductmixandcost reduction.Employee benet expenses:(` in Lacs)FY 2014 FY 2015 Change %Employee benet expenses 5,466.16 6035.93 10.42%Theincreaseisduetoregularannualincrements given to employees.Finance cost:(` in Lacs)FY 2014 FY 2015 Change %Finance cost 876.97 977.29 11.43%Financecosthasincreasedduetoincreased utilisationofoverdraftfacilityrequiredforthegrowth in business.Depreciation:(` in Lacs)FY 2014 FY 2015 Change %Depreciation 857.25 1096.84 27.94%Increase in depreciation is mainly due to two reasons:Firstly, depreciation is based on new Companies Act, 2013, resulting in additional depreciation charged to thestatementofprotandlossduringtheyearfor assets whose useful life is not more than one year as on April1,2014,theentirecarryingvalueasofthat datehasbeenchargedtostatementofprotand loss as specied in Schedule II of the Companies Act, 2013. Secondlyincreaseindepreciationisalsodue toadditioninxedassetsworth`39.98croresin FY 14-15 as compared to ` 17.72 crores in FY 13-14.Other expenses:(` in Lacs)FY 2014 FY 2015 Change %Other expenses 10882.38 12255.35 12.61%Theincreaseinotherexpensesisduetoincreased cost of services and other operating expenses, growth in scale of operation during the year. OUTLOOK OF BUSINESSIndiasstationerymarketisfuelledbyindustrial growthandexpansionintheeducationsector. Stateinitiativestoimproveeducationthrough dedicatedschemesarecontributingtogrowthin thissector.Otherfactorspositivelyinuencingthe market include rising literacy rates, greater organized retailing and increasing income levels. Growth in the ANNUAL REPORT 2014-1535countrys industrial sector will drive demand forofce stationeryproducts.Withthegovernmentsfocuson educationsectorwhichremainstheneedofthe hourinarapidlydevelopingcountrylikeIndia,the scope for growing stationery business is immense. In addition, the industry is well positioned to be beneted fromthecountrysfavourabledemographicswith oneoftheyoungestpopulations,fast-growingand qualityconsciousmiddleclass.Increasingper capitaincomeinIndiaisseeingitsrsteffectin education sector. RISKS & CONCERNSCompetitionTheIndianstationerymarketisexpandingfast.The mainsegmentsofofcestationeryandschooland educationhavebeenrapidlygrowingontheback onoveralleconomicupsurgeandthecontinuing educationboom.Thishasattractedalotofnew playersintothemarketplace,makingitextremely competitive.Moreover,therehavebeensignicant collaborationsinthespace.However,theCompany believesthatwithitsstrongcustomerconnect throughitsenduringCAMELandCAMLINbrands,as well as its wide reach pan-India, and its vast product rangeofmorethan2000skus,theCompanywill beabletorideovercompetition.Additionally,the synergywithKokuyowillaugmenttheCompanys presenceintheofcestationeryspacefurther, particularly with its notebooks. Foreign ExchangeTherawmaterialsusedbytheCompanyforthe manufactureofmanyofitsproductsarepetro-chemicals, and are imported. Thus, any drastic fall in thevalueoftheIndianrupeewillhaveanupward effectonthecostofrawmaterials,andwillinturn, increase the pressure on margins. Cyclical Nature of MarketsSchoolstationerybusinessisakeysegmentofthe Companystotalportfolio.Thereisamarkedrisein revenuesduringthestartoftheschoolterm,buta taperingofdemandastheSchooltermgetsover. While this is part and nature of the school stationery business,theriskislargelymitigatedbyrevenuesin othersegmentslikeArtsandHobbybusinessand Ofce Stationery business, both of which are relatively moreevenlyspreadoutacrossthecalendar.This ensuresacontinuityinrevenuesaswellassteady cash ows for the Company. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYTheCompanyhasinternalcontrolsystemsinplace commensurate with the size and industry it operates in. It has well-dened and well-documented systems, policies,proceduresandguidelinestocovervarious aspects of operations. The Company strictly adheres to the laws, rules and statues of the land, and ensures compliance at all levels and across all divisions and departments.TheCompanyregularlyundertakes internal audit which is under the supervision of its Audit Committee.Anyconcernsraisedareimmediately addressandcorrected.TheCompanyhaswell-denedMISsystemsthatensuresallexpensesare within the budgetary allocations, and any mismatch is immediately agged off for attention and corrective measures. SIGNIFICANT DEVELOPMENT IN HUMAN RESOURCESInlinewiththephilosophyofcreatingvalueforall ourstakeholders,theCompanyhadundertaken developmentinitiativesforitsemployees.Thisyear the major focus was on development of Sales Teams. SalesTrainingwasoneofthemostextensiveand in-depthinterventiontoenhancesellingskillsofour teams.TheworkshopswereconductedPan-India witharobustpost-trainingimplementationsupport intermsofregularreviewsandonetooneeld trainingforourManagers.Theoverallresultshave been positive. Otherdevelopmentinitiativesincludeda3day outboundtrainingforourMiddleManagement Team; workshops for our First Line Managers, Finance forNon-Financeand AdvancedExcelSkillsamongst others. TheCompanyseffortstowardscreatingaculture of quality, by investing in training of employees on 5S and Kaizen has been paying off. This year our Tarapur &VasaifactorieswerefelicitatedattheAnnual QualityConventionProgrammeorganizedbyQCFI. Weareproudtosharethatbothfactoriesbagged goldtrophiesandourTarapurTeamalsowonthe 1stprizeamongstallKaizenideaspresentedatthe convention.KOKUYO CAMLIN LIMITED36The Kokuyo Camlin Code of Conduct was introduced intheyear2013.Roadshowswereconductedatall locationstore-sensitizeemployeesontheCode. Allemployeeshaveonceagainpledgedtheir compliance to the Code. Withanobjectivetoincreasefairness,transparency and objectivity in employee evaluations, a KPI based performance evaluation system has been introduced. This will also result in alignment of individual efforts to the organizational strategy. In addition, a 360 degree survey was conducted for our key employees.Alongwithdevelopmentalefforts,succession planning exercise was conducted to ensure that there isleadershipcontinuityinkeypositions,Successors forkeypositionsintheorganizationwereidentied and their development plans have been nalized.HRalsoorganizedvariousengagementactivities toboostemployeemoraleandincrease interdepartmental bonding. The organization believes thatemployeesshallbethekeytothesuccessof KokuyoCamlinandwouldundertakealleffortsfor their development.As on 31st March 2015, the total numbers of employees were 1172.Agreementseffectingrevisioninwageandservice condition in respect of Tarapur & Taloja establishments were executed. Relations with employees at all levels remained cordial during the year. The Board of Director would like to express their sincere appreciation to all theemployeesforthepassionanddedicationthey bring to the CompanyCautionary StatementStatementsintheManagementDiscussion andAnalysisReportdescribingtheCompanys projections,estimatesandexpectationsmaybe interpretedasforwardlookingstatementswithin themeaningofapplicablesecuritieslawsand regulations.Actualresultscoulddifferfromthose expressedorimplied.Importantfactorsthatcould makeadifferencetotheCompanysoperations includeeconomicconditionsaffectingdemand/supply,priceconditionsinthedomesticand internationalmarketsinwhichtheCompany operates,changesingovernmentregulations,tax lawsandotherstatutes. TheCompanyassumesno responsibilitytopubliclyamend,modifyorrevise any forward looking statements on the basis of any subsequent development, information or events.ANNUAL REPORT 2014-1537Report on Corporate GovernanceYourDirectorspresenttheCompanysReporton Corporate Governance as per Clause 49 of the Listing Agreement for the year ended 31st March, 2015.1.COMPANYS PHILOSOPHY ON CORPORATE GOVERNANCE: CorporateGovernanceisanintegralelement in the business environment. It is a combination ofvoluntarypracticesandcompliancewith laws and regulations leading to effective control andmanagementoftheorganisation.Good CorporateGovernanceleadstolong-term shareholder value and enhances interests of all stakeholders. It brings into focus the duciary and trusteeshiproleoftheBoardtoalignanddirect the actions of the organization towards creating wealth and shareholder value. YourCompanysphilosophyonCorporate Governanceisguidedbystrongemphasis ontransparency,accountability,responsibility, fairness,integrity,consistentvaluesystemsand delegationacrossallfacetsofitsoperations leadingtosharplyfocusedandoperationally efcientgrowth.TheCompanysbeliefson CorporateGovernanceareintendedat supportingthemanagementoftheCompany forcompetentconductofitsbusinessand ensuring long-term value for shareholders, as well as customers, suppliers, employees and statutory authorities.TheBoardofDirectorsfullysupportsand endorsesCorporateGovernancepracticesas enunciated in Clause 49 of the Listing Agreement as applicable from time to time.2.BOARD OF DIRECTORS:Composition: TheCompanyhasanoptimumcombination ofExecutiveandNon-Executive/Independent Directors.ThecompositionofyourCompanys Boardwhichcomprisesof12Directorsisin conformitywiththeCompaniesAct,2013and also Clause 49 of the Listing Agreement with the Stock Exchanges. NoneoftheIndependentDirectorshaveany materialpecuniaryrelationshipsortransactions with the Company. DetailsofcompositionoftheBoard,category, attendanceofDirectorsattheBoardMeetings andlastAnnualGeneralMeeting(AGM), numberofotherDirectorshipsandCommittee Membershipsason31stMarch,2015aregiven below:Name, Designation and DIN of Directors Category No. of Board Meetings AttendedNo. of Directorships held in other Companies(+)Attendance at last AGMNo. of Committee positions held in other Companies.Chairman of CommitteeMember of CommitteeMr. Dilip D. Dandekar (00846901) Chairman & Executive DirectorED 5 11 Yes Nil 2Mr. Takuya Morikawa (03599830) Sr. Vice ChairmanNED 5 Yes Nil NilMr. Shriram S. Dandekar (01056318) Vice Chairman & Executive DirectorED 5 2 Yes Nil NilMr. Nobuchika Doi (03599835)Executive DirectorED 5 1 Yes Nil NilMr. Takeo Iguchi (03599826)Executive DirectorED 5 1 Yes Nil NilMr. Yasushi Inoue (06838399) NED 5 NIL Yes NIL NILMr. Shishir B. Desai (01453410) NED (I) 5 3 Yes Nil NilMr. Ramanathan Sriram (00065069) NED (I) 5 1 Yes Nil NilMr. Hisamaro Garugu (00579089) NED(I) 4 Nil Yes Nil NilMr. Devendra Kumar Arora (05160734) NED(I) 4 Nil Yes Nil NilMr. Noriyuki Watanabe (06391818)* NED(I) 3 1 Yes Nil NilMr. Venkataraman Sriram (06790179) NED(I) 3 NIL No NIL NILMs. Aparna Piramal Raje (01667835)** NED(I) 2 2 Nil NilED - Executive Director/NED (I) Non-Executive Director (Independent)/NED-Non-Executive Director.+Includes Directorship in Private Limited Companies, Companies under Section 8 and Alternate Directorship.*Ceased to be a Director w.e.f. 17th October, 2014.**As required under Section 149(1) of the Companies Act, 2013, Ms. Aparna Piramal Raje, Women Director has been appointed as an Additional Director(Independent) on the Board.As on 31st March, 2015, none of the Directors are related inter-se.None of the Directors on the Board is a member of more than 10 committees or Chairman of more than 5 committees as specied in Clause 49, across all the Companies in which he is a Director.KOKUYO CAMLIN LIMITED38Number of Board Meetings: During the year, Five (5) Board Meeting were held and the details are given below: Sr. No.Date Board StrengthNo. of Directors Present1 9th May, 2014 12 122 17th July, 2014 12 113 20th August, 2014 12 104 17th October, 2014 13 125 29th January, 2015 12 11Code of Conduct: TheBoardhaslaiddownaCodeofConduct forallBoardmembersandSeniorManagerial personnel of the Company. The Code of Conduct isavailableonthewebsiteoftheCompanyat www.kokuyocamlin.com. AlltheBoardMembersandSeniorManagerial Personnelhaveafrmedcompliancewiththe CodeofConductandadeclarationtothat effectsignedbytheChairmanandExecutive Director has been obtained. ProleofmembersoftheBoardofDirectors being appointed/re-appointed:i.Mr. Takuya Morikawa Mr.TakuyaMorikawa,istheSeniorVice ChairmanandNon-ExecutiveDirectorof theCompany.HehasadegreeinBachelor inEconomics,has32yearsexperiencein projects,researchanddevelopmentand corporatestrategy.PresentlyheisSenior CorporateOfcerofKOKUYOCo.,Ltd.and President & CEO of KOKUYO S&T Co., Ltd.Other Directorships Nilii.Mr. Nobuchika Doi Mr. Nobuchika Doi, is an Executive Director of theCompany.HehasadegreeinBachelor of Economics. He has 25 years experience in the eld of business strategy and marketing, planning,researchanddevelopment, productiontechnologyanddistribution managementofstationeryproducts. Presently,helooksafterallthebusiness aspects of strategy, planning and execution of the Company.Other Directorships 1Name of the Company PositionKokuyo Riddhi Paper Products Private LimitedDirectoriii.Ms. Aparna Piramal Raje Ms.AparnaPiramalRajeisanAdditional Director (Independent) of the Company. Ms. AparnaPiramalRajeisMBAfromHarvard Business School and read Economics, Politics and Philosophy at Oxford University. She was previouslyCEOofBPErgo.Shealsoworked withanadvertisingagencyLoweLondon, the John Lewis Partnership and VIP Luggage, (oneofIndiasbest-knownconsumer brand).Ms.AparnaPiramalRajefrequently contributestotheUKsFinancialTimes weekendeditionandshewritesmonthly column HeadOfcein Mint.Shehasco-authoredacomprehensivereportonthe Indian Design Industry for the Confederation of Indian Industry (CII).Other Directorships 2Name of the Company PositionTrimode Properties Private LimitedDirectorPiramal Properties Private Limited Director3.COMMITTEES OF THE BOARD: TheBoardofDirectorshasconstitutedfour Committeesi.e.AuditCommittee,StakeHolder RelationshipCommittee,Remunerationand NominationCommitteeandCorporateSocial ResponsibilityCommittee.Therolesand responsibilitiesassignedtotheseCommittees arecoveredunderthetermsofreference approved by the Board and are subject to review bytheBoardfromtimetotime. Theminutesof themeetingsofAuditCommittee,StakeHolder RelationshipCommittee,Remunerationand NominationCommitteeareplacedbefore theBoardfortheirinformationandnoting.The details as to the composition, terms of reference, numberofmeetingsandrelatedattendance etc. of these Committees are given below:ANNUAL REPORT 2014-1539I.AUDIT COMMITTEE: Composition, meetings and attendance during the year Duringthenancialyear2014-15,Four(4) meetingsofthe AuditCommitteewereheldon 9thMay,2014,17thJuly,2014,17thOctober,2014 and 29th January, 2015. ThedetailsofcompositionoftheCommittee and their attendance at the meetings are given below:Name Designation Category No. of Meetings attendedMr. Shishir B. Desai Chairman NED (I) 4Mr. Ramanathan SriramMember NED (I) 4Mr. Takuya MorikawaMember NED 4Mr. Noriyuki Watanabe*Member NED (I) 3Mr. Venkataraman Sriram**Member NED (I) 1*Ceased to be a member w.e.f. 17th October, 2014.** Appointed as a member w.e.f. 17th October, 2014. The meeting of Audit Committee is also attended by Whole-time Directors, Chief Executive Ofcer, Chief Financial Ofcer, Statutory and Internal Auditors as special invitees. The Company Secretary acts as a Secretarytothe AuditCommittee.Minutesofthe Audit Committee are placed and discussed in the next meeting of the Board. Members of the Audit Committee have requisite nancialandManagementexpertiseand haveheldorholdseniorpositionsinreputed Organizations. TheChairmanoftheAuditCommitteewas present at the Annual General Meeting held on 17th July, 2014.Terms of reference: Thetermsofreferencetothiscommittee, interaliacoversallthemattersspeciedunder Clause49oftheListingAgreementwiththe stockexchangesaswellasinSection177of theCompaniesAct,2013,besidesotherterms asmaybereferredbytheBoardofDirectors, from time to time. The Audit Committee has also powers inter alia to investigate any activity within itstermsofreferenceandtoseekinformation fromanyemployeeoftheCompanyandseek legal and professional advice.II. REMUNERATION AND NOMINATION COMMITTEE: Composition,meetingsandtheattendance during the year Duringthenancialyear2014-15,Two(2) meetingoftheRemunerationandNomination Committeewereheldon6thMay,2014and16th August, 2014. ThedetailsofcompositionoftheCommittee andtheirattendanceatthemeetingaregiven below:Name Designation Category No. of Meetings attendedMr. Shishir B. DesaiChairman NED (I) 2Mr. Dilip D. DandekarMember ED 2Mr. Hisamaro GaruguMember NED (I) Mr. Noriyuki Watanabe*Member NED (I) 2Ms. Aparna Piramal Raje**Member NED (I) *Ceased to be member w.e.f. 17th October, 2014.**Appointed as a member w.e.f. 17th October, 2014.Terms of reference:The main term of reference of the Committee is: Tc g0ice lhe Bccrc in relclicn lc cppcinlmenl andremovalofDirectors,KeyManagerial Personnel and Senior Management. Tc evcl0cle lhe perfcrmcnce cf lhe memLers of the Board and provide necessary report to the Board for further evaluation of the Board. Tc reccmmenc lc lhe Bccrc cn Pem0nerclicn payabletotheDirectors,KeyManagerial Personnel and Senior Management. Tc prcvice lc Key lcncgericl Perscnnel cnc SeniorManagementrewardlinkeddirectly totheireffort,performance,dedicationand achievementrelatingtotheCompanys operations. Tcrelcin,mclivclecncprcmclelclenlcnc to ensure long-term sustainability of talented managerial persons and create competitive advantage. Tc cevise c pclicy cn Bccrc civersily. Tccevelcpcs0ccessicnplcnfcrlheBccrc and to regularly review the plan. KOKUYO CAMLIN LIMITED40Policy for Remuneration to Directors/Key Managerial Personnels1. RemunerationtoManagingDirector/Whole-time Directors:a) TheRemuneration/Commissionetc.to bepaidtoManagingDirector/Whole-timeDirectors,etc.shallbegovernedas perprovisionsoftheCompaniesAct,2013 andrulesmadethereunderoranyother enactmentforthetimebeinginforceand the approvals obtained from the Members of the Company.b) TheRemunerationandNomination Committeeshallmakesuch recommendationstotheBoardofDirectors, as it may consider appropriate with regard to remunerationtoManagingDirector/Whole-time Directors.2. RemunerationtoNon-Executive/Independent Directors:a) TheNon-Executive/IndependentDirectors mayreceivesittingfeesandsuchother remunerationaspermissibleunderthe provisionsofCompaniesAct,2013.The amount of sitting fees shall be such as may be recommended by the Remuneration and NominationCommitteeandapprovedby the Board of Directors.b) AlltheremunerationoftheNon-Executive/IndependentDirectors(excluding remunerationforattendingmeetingsas prescribedunderSection197(5)ofthe CompaniesAct,2013)shallbesubjectto ceiling/limits as provided under Companies Act,2013andrulesmadethereunderor anyotherenactmentforthetimebeingin force. The amount of such remuneration shall besuchasmayberecommendedbythe RemunerationandNominationCommittee andapprovedbytheBoardofDirectorsor shareholders, as the case may be.c) An Independent Director shall not be eligible togetStockOptionsandalsoshallnotbe eligibletoparticipateinanysharebased payment schemes of the Company.d) AnyremunerationpaidtoNon-Executive/IndependentDirectorsforservicesrendered whichareofprofessionalnatureshallnot beconsideredaspartoftheremuneration forthepurposesofclause(b)aboveifthe following conditions are satised:i. TheServicesarerenderedbysuch Directorinhiscapacityasthe professional; andii. IntheopinionoftheCommittee, theDirectorpossessestherequisite qualicationforthepracticeofthat profession.3. Remuneration to Key Managerial Personnel:a) TheremunerationtoKeyManagerial Personnelshallconsistofxedpayand incentivepay,incompliancewiththe provisionsoftheCompaniesAct,2013and in accordance with the Companys Policy.b) TheFixedpayshallincludemonthly remuneration,employerscontributionto Provident Fund, contribution to pension fund, pension schemes, etc. as decided from time totimeinaccordancewiththeCompanys Policy.c) TheIncentivepayshallbedecidedbased onthebalancebetweenperformance oftheCompanyandperformanceofthe KeyManagerialPersonneltobedecided annuallyoratsuchintervalsasmaybe considered appropriate. Thedetailsofremunerationisgiveninform MGT-9whichformspartoftheDirectorsReport. AbriefoftheRemunerationpaidtoExecutive Directors,ManagerandNon-ExecutiveDirectorsis given below:A.Executive Directors: FollowingistheRemunerationpaidtothe ExecutiveDirectorsforthenancialyearended 31st March, 2015:(` in Lacs)Name Salary Including HRAPerquisites# TotalMr. Dilip D. Dandekar 71.94 49.81 121.17Mr. Shriram S. Dandekar 60.72 41.49 102.21Mr. Nobuchika Doi42.24 44.42 86.66Mr. Takeo Iguchi42.24 44.30 86.54ANNUAL REPORT 2014-1541# Perquisitesinteralia,includereimbursementof expenses/ allowances for utilities such as gas, electricity, water,furnishingandrepairs,medicalreimbursement, leavetravelconcession,clubfees,provisionofcar anddriver,telephone/faxfacilities,benetofpersonal accident insurance scheme etc. AllExecutiveDirectorsarealsoentitledtoCompanys contribution to provident fund, gratuity and encashment of leave as per the rules of the Company. Some of the Executive Directors are entitled for superannuation. Agreementfortheperiodofthree(3)yearshave beenexecutedwithWholetimeDirectorsnamely Mr.NobuchikaDoiandMr.TakeoIguchiw.e.f. 1stNovember2014ontherecommendationof RemunerationandNominationCommitteeand approvedbytheBoardofDirectors.Theapprovalof thememberswerealsosoughtontheappointments of the aforesaid Wholetime Directors by way of passing specialResolutionsat67th AnnualGeneralMeetingof the Company held on 17th July, 2014.B.Manager: Mr. Ayyadurai Srikanth, Manager and designated asChiefExecutiveOfcerisbeingpaida remunerationof`86.14Lacsfortheperiod ended 31st March, 2015.C.Non-Executive Directors: ThedetailsofSittingFeespaidtoNon-Executive Directors for the year ended 31st March, 2015 are given below: (` in Lacs)Name Sitting FeesMr. Shishir B. Desai 2.45Mr. Ramanathan Sriram 2.30Mr. Hisamaro Garugu0.85Mr. Devendra Kumar Arora0.85Ms. Aparna Piramal Raje 0.50Grand Total 6.95The Company has paid legal fees of ` 6.08 Lacs forthenancialyear2014-15toM/s.Desai& Chinoy, a rm of Solicitors & Advocates in which Mr.ShishirB.Desaiisapartner.Theservices providedbyhisrmarepurelyofprofessional nature.Theaforesaidprofessionalfeespaidto M/s. Desai & Chinoy does not form a signicant portion of the revenue of M/s. Desai & Chinoy and thus is not considered material enough to impinge upontheindependenceofMr.ShishirB.Desai. Accordingly there are no pecuniary relationship ortransactionsofIndependentDirectorvis--vis theCompanywhichhaspotentialconictwith the interest of the Company at large.TheNon-Executive/IndependentDirectorsare notholdinganysharesintheCompanyason 31st March, 2015.III. STAKE HOLDER RELATIONSHIP COMMITTEE: Composition,meetingsandtheattendance during the year. Duringthenancialyear2014-15,four(4) meetingswereheldon9thMay,2014,17thJuly, 2014, 17th October, 2014 and 29th January, 2015. The details of composition of the Committee and attendance of the members at the meetings are given below:Name Designa- tionCategory No. of Meetings attendedMr. Ramanathan SriramChairman NED (I) 4Mr. Shishir B. Desai**Member NED (I) 3Mr. Shriram S. DandekarMember ED 4Mr. Devendra Kumar Arora*Member NED (I) * Appointed as a member w.e.f. 17th October, 2014.** Ceased to be a member w.e.f. 17th October, 2014. The Board has designated Mr. Ravindra V. Damle, Company Secretary as the Compliance Ofcer. Complaintsreceivedandredressedbythe Company during the nancial year: During the year, three (3) Complaints about non-receiptofDividendandShareCerticateswere received from shareholders, which were attended promptlyandresolvedtothesatisfactionofthe concerned Shareholders.IV. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (CSR): During the nancial year 2014-15, no meeting of the committee was held, since the occasion for it did not arise. The details of the Composition of the Committee is given below:Name Designa- tionCategoryMr. Ramanathan Sriram Chairman NED (I)Mr. Nobuchika Doi Member EDMr. Shriram S. Dandekar Member EDKOKUYO CAMLIN LIMITED42Terms of reference FormulateandrecommendtheCSRpolicyto theboardwhichshallindicatetheactivitiesto beundertakenbytheCompany,recommend theamountofexpendituretobeincurredon theactivityandmonitortheCSRpolicyofthe Company from time to time.V.INDEPENDENT DIRECTORS MEETING: AsrequiredbytheCompaniesAct,2013and Listing Agreement,themeetingofIndependent Directors was held on 17th October, 2014.4.GENERAL BODY MEETINGS:A. DetailsoftheAnnualGeneralMeetings heldduringthepreceding3yearsand SpecialResolutionspassedthereatare given below:Financial Year EndedVenue Date & TimeDetails of Special Resolutions Passed2013-14 Textile Committee Building Auditorium,1st Floor, P. Balu Road, Prabhadevi Chowk, Prabhadevi, Mumbai - 400 02517th July, 2014 at 11:30 a.m1. Alteration in Articles of Association of the Company in respect of clause on Directors retiring by rotation.2.Approval of appointment of Executive Directors and xing their remuneration.3.Approval of related party transaction.4.Consent for mortgaging and/or charging all immovable and movable properties of the Company upto limit of ` 150 crores.2012-13 Walchand Hirachand Hall, Indian Merchants Chamber Marg, Churchgate, Mumbai - 400 02023rd July, 2013 at 3.30 p.m.No Special Resolution was passed.2011-12 Walchand Hirachand Hall, Indian Merchants Chamber Marg, Churchgate, Mumbai-400 02026th July, 2012 at 3.00 p.m.Alteration in Articles of Association of the Company in respect of increase in Authorised Share Capital.B.Postal Ballot: NoresolutionwaspassedthroughPostal Ballot during the Financial Year 2014-15. None of the bus