19:52 Jul 28, 2014  

Sintex Industries Ltd

HSL Code: SININD   |   BSE Code: 502742  |   NSE Symbol: SINTEX  |   ISIN: INE429C01035
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Directors





Your Directors are pleased to present the 83rd Annual Report together with the audited accounts of your Company for the financial year ended 31st March 2014.

Financial highlights

The financial performance of the Company for the financial year ended on 31st March, 2014 is summarised below:

(Rs. in Crore)

Particulars 2013-14 2012-13
Gross turnover 3314.47 3,064.85
Gross profit 576.33 435.63
Less : Depreciation 138.33 123.18
Profit before tax 438.00 312.45
Less: Provision for taxation — Current tax 93.07 62.68
MAT Credit Entitlement (35.36) (62.10)
Deferred tax 40.40 41.62
Profit/(loss) after tax before prior period items 339.89 270.25
Add/(Less): Short provisions for taxation of earlier years (4.83) (1.06)
Profit after tax 335.06 269.19
Balance of profit of previous year 1490.75 1,307.81
Profit available for appropriation 1825.81 1,577.00
Appropriations
General reserve 35.00 27.50
Debenture redemption reserve 33.27 33.27
Proposed dividend on equity shares 21.92 21.92
Tax on dividend 3.72 3.56
Balance carried to balance sheet 1731.90 1,490.75
TOTAL 1825.81 1,577.00

Note: Previous year figures have been regrouped/re-classified wherever required

Financial performance :

Your Company`s performance was commendable despite the prevailing policy logjam and the Government`s inability to clear important growth inducing policies which put economic progress on the backburner.

Your Company`s posted a gross turnover of Rs.3314.47 Crores in 2013-14 - a growth of 8.14% over Rs.3064.85 crores in 2012-13. The growth was primarily due to the robust performance of the prefab business supported by good business volumes from other business verticals.

The Company`s flagship business segment - monolithic construction reported a subdued performance due to the prevailing external factors that impacted business profitability -namely delays in site clearances and a stretched receivables cycle.

EBIDTA grew to Rs.829.77 crores against Rs.670.47 crore in the previous year, while Net Profit climbed to Rs.335.06 crore against Rs.269.19 crore over the same period. The earning per share stood at Rs.10.77 (basic) and Rs.10.77 (diluted) in 2013-14.

Cash plough back into the business was Rs.592.39 crore in 201314 as against Rs.525.98 crore in 2012-13 - providing an adequate cushion for funding growth initiatives.

Dividend

Your Directors are pleased to recommend dividend of Rs.0.70 per share on face value of Rs.1/ each, on 31,31,09,980 Equity shares fully paid up as on March 31, 2014 (Previous Year Rs.0.70 per share on face value of Rs.1/ each, on 31,31,09,980 Equity shares) and any further equity shares that may be allotted by the Company upon conversion of FCCBs and Warrants prior to book closure date for 2013-14.

The dividend will be paid subject to the approval of shareholders at the forthcoming Annual General Meeting to those shareholders whose names appear on the Register of Members of the Company as on the specified date.

Business review and divisional performance:

Despite the external environment being plagued with high interest costs, stubborn inflation and a policy logjam, your Company`s performance was heartening. Most key business verticals, other than monolithic construction, registered improved numbers. A detailed discussion of your Company`s operations is given under the `Management discussion and analysis report.`

A. Plastics division: The Company`s plastics business performed well. Revenue grew 6.77% from Rs.2593.14 crore in 201213 to Rs.2768.61 crore in 2013-14 despite the planned degrowth in the monolithic construction space. The plastics business contributed 90.87% of the Company`s consolidated revenues.

The prefab business retained its star performer position with large business volumes from Maharashtra (for sprucing up education facilities), Gujarat (for strengthening infrastructure in tribal areas) and heartening volumes from other states.

Other businesses namely water storage tanks, sandwich panels and sub-ground structures logged in strong business volumes to make a meaningful contribution to the business segment growth.

The SMC business remained the key growth contributor as the Company extended its footprint into new states generating heartening volumes. Pallets and insulated boxes also made important contribution to the division`s growth.

B. Textiles division: Your Company`s textile business recorded a strong rebound in 2013-14 supported by strong business volumes. Revenue grew 15.72% from Rs.471.71 crore in 201213 to Rs.545.86 crore in 2013-14. This was achieved primarily due to the shift in focus from international markets to domestic customers which strengthened business volumes. Besides, the Company`s innovation efforts in rejuvenating its products baskets, optimising costs and widen its reach in domestic markets also contributed rich dividends.

Subsidiaries

The Company`s subsidiaries Nief Plastics SAS, Sintex Wausaukee Composites Inc., Bright AutoPlast Ltd and Sintex Infra Projects Ltd and provide infrastructure and highly-engineered custom moulding solutions. These companies work closely with each other to generate more business and enhance profitability of the parent company. On Account of disinvestment, of entire holding, Zep Infratech Limited has ceased to be a subsidiary of the Company.

Performance of subsidiaries

1) Nief Plastics SAS: The figures of the financial year closed to March 31st , 2014 represent a growth as well as an excellent resistance to the difficult economic and business environment that prevailed across Europe. The integration of the new subsidiaries during 2012 (German and Polish) progressed on schedule with the implementation of good practice of the SINTEX NP group. This allowed us to be close to local markets and enrich the customer basis with prestigious German references. The year 2014 should go further in consolidating these gains and ensure the further development of SINTEX NP.

2) Sintex Wausaukee Composites Inc.: During the year, Sintex Wausaukee undertook extraordinary action that facilitated the Company`s return to profitability. In addition, the team implemented several initiatives to expand its capabilities which would drive growth in 2014 and beyond. Some of them include:

• Added an ERP system to improve our cost accounting and reporting

• Restructured our organization to allow our sales and marketing teams to drive growth in our new Business Units

• Securing organic growth with our core OEMs including the awarding of Phase III at New Flyer and reorganizing our plants to meet the increased demand for components.

• Seek opportunities to expand our capabilities with strategic acquisitions in thermoforming and RIM.

• Continue to drive the growth of our Special Projects Vehicle with the installation of the Pune LRTM cell and growth opportunities with Cummins Power Generation.

We are confident that these initiatives will strengthen the Company contribution to the consolidated revenue and profitability.

3) Bright AutoPlast Ltd.: Due to de-growth in the automotive segment the key customer for Bright Auto resulted in a subdued performance for the Company thus revenue declined by 2.8% - its first decline in absolute numbers since its takeover, However, due to various cost reduction measures, Company has improved its EBIDTA by 10.8%. Also the Company made heartening progress in securing approvals from large and respected global and Indian brands for new products which will lay the foundation for a robust growth in the coming years. These approvals include:

• Eicher-Polaris: Tailgate outer, Hood Cover, Front & Rear Fender, Fire Wall, Fuel Tank etc.

• Volvo Eicher: Fuel tanks, degassing tanks, Cabin ducts, Air-intake system ducts and wheel guards

• Volvo: DEF Tank (Urea) to serve domestic and export demand for ducts and wheel guards

• Borg-Warner: engine management components

• TRW: PAB Cover LH and RH.

• Hydec: degassing tanks.

The Company has set-up a Roto-moulding facility inside its Pithampur factory which is expected to commence operation in the second quarter of 2014-15. In addition, the Company is setting up a new composite manufacturing facility with LRTM (Light Resin Transfer Moulding) at its Pune unit. This technology has been acquired from Sintex Wausaukee Composites Inc USA and will be used for manufacturing large-sized exterior and interior parts of (more than 2 Sq Meter) with painting for automotive, construction equipment, mass transit and medical equipment OEMs.

4) Sintex Infra Projects Ltd.: The Company leverages its rich track record of executing civil and mechanical construction to execute infrastructure projects. It is working on some important projects namely 1) executing an EPC Contract worth Rs.1300 crore for Shirpur Power 2) creating check posts projects in Madhya Pradesh and 3) creating pollution management infrastructure in Uttar Pradesh and 4) a low-cost housing project in Rajasthan. These projects have progressed as per agreed schedules and the Company has consistently received funds as per the scheduled milestones.

During the year under review, the company successfully bagged a major EPC contract worth Rs.1406.51 Crores for setting up the Spinning Project in the state of Gujarat.

Employee stock option scheme

The shareholders of the Company had approved of its employee stock option plan (Sintex Industries Limited Employees Stock Option Scheme 2006) in February 2006. These ESOPS are administered by the Sintex Employee Welfare Trust on the basis of recommendations of the Compensation Committee of the Board. In terms of the plan, the Company periodically granted stock options to eligible employees. The Company will conform to the accounting policies specified in the guidelines as amended periodically. The details of the scheme are set out in Annexure I of this Report.

The Members of the Company in the Annual General meeting held on September 17, 2012 have approved the extension of exercise period from two years to four years of Sintex Industries Limited Employees Stock Option scheme 2006.

Fixed deposits

Your Company did not float any deposit scheme to which provisions of Section 58A of the Companies Act, 1956 and the Rules made there under are applicable.

Listing of shares and securities

The names and addresses of the stock exchanges where the Company`s securities are listed are given below:

• The National Stock Exchange of India Ltd, Exchange Plaza, Plot No. C-1, G Block, IFB Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051

• BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001

• Singapore Exchange Securities Trading Limited, 2 Shenton Way, # 19 - 00 SGX Centre 1, Singapore-068804. (FCCB`S US$ 140 million)

• BSE Limited (Wholesale Debt Market), Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 (NCD Rs.250 crores and NCD Rs.350 crores)

The equity shares of the Company have been delisted from Ahmedabad Stock Exchange Limited w.e.f. 26th August, 2013 and the Company paid Listing Fees to all the above Stock Exchanges for FY 2014-15.

Management Discussion and Analysis

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, the Management Discussion and Analysis Report for the year under review are annexed to this Report and forms part of this Annual Report.

Corporate Governance

Sintex continues to be committed to good Corporate Governance aligned with the best practices. It has complied with all the standards set out by SEBI and the Stock Exchanges.

A separate Report on Corporate Governance along with Practising Company Secretary`s Certificate on compliance with the conditions of Corporate Governance as per Clause 49 of the

Listing Agreement with the Stock Exchanges is provided as a part of this Annual Report, besides the Management Discussion and Analysis.

Your Company has made all information, required by investors, available on the Company`s website www.sintex.in

Directors

Mr. Rahul A. Patel, Managing Director (Group) and Mr. S. B. Dangayach, the Managing Director of the Company are due to retire by rotation at this Annual General Meeting in terms of section 152(6) of the Companies Act, 2013 and are eligible for reappointment. The Board recommends the reappointment of above Directors of the Company.

The independent directors of the Company were appointed as such being liable to retire by rotation under the erstwhile Companies Act, 1956. However, Explanation to Section 152(6) (e) of the Companies Act, 2013 provides that for the purpose of this sub section "total number of directors" shall not include independent directors , whether appointed under this Act or any other law for the time being in force, on the Board of a company. Accordingly, none of the Independent director shall be liable to retire by rotation under the new term.

The company at present has six independent directors and in terms of clarification issued by Ministry of Corporate affairs vide Circular No. 14/2014 Dated 9th June, 2014 and provisions of Section 149(5) of the Companies Act, 2013, all the independent directors as on commencement of new act have to be appointed under the provisions within a period of one year. Mr. Ramnikbhai H Ambani, Smt. Indira J Parikh and Dr. Rajesh B Parikh are due for retirement in 2014 and other independent directors Dr. Luvkumar Kantilal Shah, Dr. Narendra K Bansal and Shri Ashwin Lalbhai Shah are due to retire in 2015, 2015 and 2016, respectively. However, in view of the aforesaid circular, the above three Independent directors would be deemed to have demitted their office at the ensuing Annual general Meeting and would be appointed for the first term as Independent Director for a term of three years i.e. up to the 86th Annual General Meeting in the year 2017. The Company has received declaration in terms of Section 149(6) of the Companies Act, 2013. The Company has received specific notices from the members of the Company under section 160 of the Companies Act, 2013, along with a requisite security deposit in each case for appointments as Independent Directors for a term of 3 (three) years.

The Board recommends the appointment of above as Independent Directors of the Company.

As stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, brief profile of the Directors proposed to be re-appointed, nature of their expertise in specific functional areas, names of the companies in which they hold directorships and shareholding are provided in the Notice attached forming part of the Annual Report.

Directors` Responsibility Statement

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed that:

1. In the preparation of the annual accounts for the year under review, the applicable accounting standards have been followed and there have been no material departures.

2. The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

3. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities.

4. The annual accounts of the Company have been prepared on a `going concern` basis.

Consolidated financial statements

The Consolidated Financial Statements have been prepared in accordance with the Accounting Standards prescribed by the Institute of Chartered Accountants of India, in this regard.

Subsidiaries

In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. However, the financial information of the subsidiary companies is disclosed in the Annual Report in compliance with the said circular. The Company will make available the annual accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will also be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies. The Consolidated Financial Statements presented by the Company include the financial results of its subsidiary companies.

Conservation of energy, technology absorption, and foreign exchange earnings and outgo

A statement containing the necessary information required under Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are given in the Annexure II forming part of this Report.

Particulars of employees

The information required as amended under section 217(2A) of the Companies Act, 1956, read with Companies (Particular of Employees) Rules, 1975, forms part of this report as Annexure III. However, as permitted by Section 219(1) (b) (IV) of the Companies Act, 1956, this Annual Report is being sent to all shareholders excluding the said Annexure. Any shareholder interested in obtaining the particulars may obtain it by writing to the Company Secretary at the registered office of the Company.

Insurance

All the Properties of your Company, including plant and machinery, buildings, equipments, and stocks among others have been adequately insured.

Auditors and Auditors Report

M/s Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad, are associated with the Company, since long as Statutory Auditors. The Company is in receipt of a Special Notice u/s 140 (4) read with section 115 of the Companies Act, 2013 proposing M/s Shah & Shah Associates, Chartered Accountants, Ahmedabad (FRN 113742W) as Statutory Auditors in place of M/s Deloitte Haskins & Sells, Chartered Accountants, the retiring Auditor of the Company. Although not statutorily required under the provisions of the Companies Act, 2013, but as part of pro-active governance and considering the Auditor`s rotation, the Board of Directors on the recommendation of the Audit Committee has decided to support the said Special Notice. M/s. Shah & Shah Associates, Chartered Accountants, Ahmedabad (FRN 113742W) have furnish a letter dated 27th June, 2014 to the effect that the appointment, if made, would be within the prescribed limits under the Section 141(3)(g) of the Companies Act, 2013 and they are not disqualified for appointment.

The Board places on record its appreciation for services rendered by M/s Deloitte Haskins & Sells, as Statutory Auditors` of the Company.

The Notes on Financial Statement referred to in the Auditors Report are self explanatory and do not call for any further comments.

Cost Auditor

The Central Government has approved the appointment of M/s. Kiran J Mehta & Co, Cost Accountants, Ahmedabad (Membership No. 00025) and Mr. V. H. Shah, Cost Accountants, Ahmedabad (Registration No. 100257) for conducting Cost Audit for the Financial Year 2013-14 for the Textile and Plastic Businesses of the Company respectively.

The Company has filed the consolidated Cost Audit Report for the year ended March 31, 2013 on September 27, 2013 within the time limit as prescribed by the Ministry of Corporate Affairs. The Company has also filled the cost compliance report on September 27, 2013 within the time limit as prescribed by the Ministry of Corporate Affairs.

Acknowledgements

Your Directors wish to place on record the excellent support, assistance and guidance provided by the financial institutions, banks, customers, suppliers and other business associates. Thanks to our Company`s employees for their tireless efforts and high degree of commitment and dedication. Your Directors especially appreciate the continued understanding and confidence of the Members.

On behalf of the Board,
Date: July 4, 2014 Dinesh B Patel
Place: Ahmedabad Chairman

Annexure "I" to the Directors` Report

Disclosure pursuant to the provisions of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999

Details of the grants as on March 31, 2014

a. Total number of options covered under the plan 10,00,000
b. Total number of options granted 10,00,000
c. Pricing formula An exercise price of Rs.45.85 per equity share shall be payable by an employee pursuant to the ESOP Scheme.
The employee can opt for conversion of the options by applying to the Trust by a written notice during the exercise period, in a specified format accompanied by payment of the exercise price and all applicable taxes. Such notice is required to be provided by the employees to the Trust not less than 30 (thirty) days before the exercise of the options by the employee.
d. Vesting schedule All options granted on any date shall vest at the expiry of 36 months from the date of the grant
e. Options vested 10,00,000
f. Options exercised 38,500*
g. Options lapsed Nil
h. Variation of terms of options The Members of the Company at the Annual General Meeting held on 17.09.2012 have approved extension of exercise period from two years to four years.
i. Money realised by exercise of options Nil
j. Total number of options in force 9,61,500
k. Person-wise details of options granted to:
(i) Directors 10,000
(ii) Key managerial employees 9,90,000
(iii) Any other employee who received a grant in any year of options amounting to 5% or more of options granted during that year Nil
(iv) Identified employees who are granted options, during any one year equal to or exceeding 1% of the issued capital (excluding warrants and conversions) of the Company at the time of grant Nil
l. Diluted earnings per share On exercise of option during the period under review there is no dilution earning per share
m. Weighted average exercise price An exercise price of Rs.45.85 per equity share shall be payable to the ESOP Scheme
n. Weighted average fair value of options Not applicable
o. Description of method and assumptions used for estimating fair value of options Not applicable

* Consequent upon sub-division of the each equity share of the company from Rs.2 per equity share into two equity shares of Rs.1 each, the employees of the Company eligible for equity of the company under Sintex Industries Limited Employees Stock Option Scheme, 2006 (ESOP 2006) be entitled to two equity shares of Rs.1 each, on exercise of option under the said Scheme, at an exercise price of Rs.45.85 per equity share, as stated in the said scheme.

Annexure "II" to the Directors` Report

Information required under section 217 (1)(e) of the Companies Act, 1956

1) CONSERVATION OF ENERGY

a) Energy conservation measures taken: Plastics Division:

1) Installed 2 no (30 hp & 40 HP) Ac freq. drive at Hydraulic Press in SMC Dept. resulting in power saving and less maintenance.

2) LED Lighting Fixtures installed in place of old light Fixtures resulting resulting in power saving and less maintenance.

3) T-5 Lighting Fixtures installed in all New Out side Plant resulting in less power consumption and less maintenance.

4) For SMC Dept, Pultrusion Dept, Roto Moulding Dept & Street light planned for LED Lighting Fixtures in place of Old Light Fixture.

5) Replaced A.C. Variable Drives in Place of DOL Starter on Rock & Roll Machines in Roto Molding dept. resulting in Energy Saving and Reduction in Mechanical & Electrical Maintenance and down time.

6) Replaced Energy Efficient Bore well pump in Bore well No.-2 to get energy saving.

7) Installed Smart Sense instrument at Namakkal, Ulubearia, Nalagarh Plant to see Online (Current and previous day`s) various parameters of electric power, i.e voltage, Amp., KVA and KWH in any computer with Internet connection. Also provision of SMS alert if any value goes beyond the set parameters. The benefit is to get proper load shedding as per advance planning.

8) Installed New 6 No`s Inverter type Split Air condition in place of very old window Air Condition resulting energy saving.

9) Using PLC Based Blow Molding Machine we have Benefited Considerably such as Productivity increased, reduced consumption of Power, reduced Maintenance and Man Power

10) Installed AC Freq. Drive at compressor in FRP dept. The Result is Less Power consumption and Break Down Reduced in Power cost.

11) In office building chilling plant & Pre Molding chilling plant replaced 5 H.P. Efficient pump in place of old inefficient 7.5 H.P. pump.

12) Renovated the screw & barrel in 150 MM Extruder m/c. The result is increased the Production.

13) Insulation of all Inlet & Out let pipe lines of Voltas Chilling Plant in Pre-molding dept. was revamped. The result is increase in cooling efficiency and saving the electrical consumption.

14) Installed CCTV cameras in SMC, Roto Molding & Various Security Points to control the various activities.

Textile Division:

1) In the Process Division, an overhead water tank was installed. Prior to this, water was supplied through a pump, which was running for 24 hours continuously. After the installation of an overhead tank, the working of the pump is reduced there by reducing power consumption and got smooth distribution of water supply with equal pressure at different water usages.

2) Existing MS Water Supply Pipeline of Processing Department is replaced with ASTRAL CPVC line for rustless water supply and it consumes the less power because of the resistance less surface.

3) At Central Effluent Treatment Plant, earlier one no. Blower Motor (having 30 HP capacity) was running continuously 24 Hrs. After changing the process of treatment, working hours of this blower motor is now reduced to 40 % resulting into saving of energy.

4) After modification is done on pipe line at Old ETP plant. Before from Old ETP to Central Effluent plant Effluent is supply through two nos of pump 50HP and 40HP. After modification only one pump 50HP is used and working of 40HP pump is reduce to 80% Which resulting into saving of energy.

5) Condensate water from CRP plant is taken back into system for re-use, resulting in cost savings. This Water is fed to feed water of boiler and due to its high temperature the boiler efficiency is increased.

6) Process Department, Mercerise Machine Condensate Return Water is now recovered and being used as Feed Water in Mill Steam Boiler. This water was earlier drained in to effluent.

7) In Omni Airjet Looms, LED type under loom lighting fixtures installed for weaving fabric quality checking on loom. This LED type fixtures are having less power consumption and less maintenance compared to conventional type fixtures.

8) For Increasing the efficiency of Steam Boilers, High Pressure Jetting Wash introduced while annual inspection of boilers.

9) In IBL Steam Boilers, Common Draft of Flue Gas is divided in to two individual draft for increasing the efficiency of the IBL boiler.

10) In Yarn dyeing Division, Overhead water Tank is installed. Before water supply through pump was running continuously 10 Hrs. After installation of overhead tank this pump is eliminated resulting in power saving.

11) In Softening Plant, the supply of bore well water was given by two nos. centrifugal pumps which are replaced by one submerged pump resulting in power reduction.

12) In textile Division, Humidification Plants are audited for its performance by calculation of volume and existing CFMs. From the report, CFMs are balanced in all plants by changing blade angles and switching off the return and supply air fans, ultimately resulting into saving of energy.

b) Additional investments and proposals, if any, being implemented to reduce consumption of energy. Plastics Division

1) To install Ac freq drive at Pultrusion & rock & roll Machine Machine in Pre Molding & Roto Molding dept. at out site plant

2) Working on replacement of remaining Street Light & Departments lights by LED fixtures which consume less power and reduction in maintenance.

3) Renovation of Screw & Barrel of 150 MM Extruder m/c to increased the production.

4) PS. department cooling water pipe line modification. This is to introduce reducing power consumption.

5) PS. department chilling plant working efficiency with less energy consumption is to be increased by introducing heat exchanger.

Textile Division:

1) In Textile Division, we are introducing Effluent Heat Recovery Skid which recollect the thermal energy from the hot effluent of yarn dye house and gives the hot water output for the dyeing machines.

2) In Textile Division, we are working on replacement of underloom tubelights by LED strips which consumes 50% less power than the tube light fixtures without affecting the light output for quality inspection and control to reduce energy consumption and maintenance.

3) In the textile division, by replacing high-efficiency ring frames, power consumption reduced and productivity increased.

4) In the textile division, Staffy-made yarn dyeing machines are to be replaced with fully-automatic Gofront-made yarn dyeing machines, which are more energy-efficient.

c) Impact of the measures (a) and (b) above for reduction of the energy consumption and the consequent impact on the cost of production of goods.

1) In the textile division, quality production is achieved by saving a considerable amount of power.

2) The above mentioned measures resulted in energy saving and a subsequent reduction in energy costs, reducing production costs.

3) In the plastics division, the impact of energy saving devices will be peripheral in the beginning. However, it will be substantial if the entire programme is implemented.

d) Total energy consumption and energy consumption per unit of production with respect to the Company`s products.

Details are provided in Form A annexed hereto.

2) TECHNOLOGY ABSORPTION.

e) Efforts made in technology absorption

Details are provided in Form B annexed hereto.

3) FOREIGN EXCHANGE EARNINGS AND OUTGO.

f) Activities relating to exports, initiatives taken to increase exports, development of new markets for products and services and export plans

g) Total foreign Exchange used and earned.

2013-14 2012-13
(Rs. in Crores) (Rs. in Crores)
i) Foreign Exchange earned including direct exports 38.50 36.55
ii) Foreign Exchange used 25.07 17.72

Form - A

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSUMPTION OF ENERGY.

Current year Previous year
(A) Power and Fuel Consumption. 2013-14 2012-13
1. Electricity:
(a) purchased: Unit (lacs) 715.53 504.52
Total Amount (Rs. lacs) 4000.10 3,881.78
Rate/Unit(Rs.) 5.59 7.69
(b) Own Generation
(i) Through Captive Power Plant: (M&W)
Units(lacs) - 2.32
Units per liter of Diesel/Furnace oil/Gas - 3.20
Cost/Unit(Rs.) - 11.93
(ii) Through Captive Power Plant: (GT)
Units (lacs) - 298.67
Units per SCM of Gas - 2.85
Cost/Unit (Rs.) - 9.22
2. Furnace Oil: (Qty.Kilolitres) - 72.44
Total Amount (Rs. lacs) - 27.66
Average Rate (Rs./litre) - 38.18
3. Others:
(a) Natural Gas
Quantity Consumed in M3 5,427.49 6,189.28
Total cost (Rs. lacs) 640.06 568.46
Rate/Unit(1000 m3)(Rs.) 11792.97 9,184.59
(b) RLNG Gas
Quantity Consumed in (000) SCM 3,007.02 10,393.45
Total cost (Rs. lacs) 1,310.09 3,087.07
Rate/Unit (000 SCM)(Rs.) 43,567.76 29,702.07
(c) L.P.G
Quantity consumed (in lacs kgs) 17.74 26.67
Total cost (Rs. in lacs) 1,231.86 1,721.92
Rate/unit (Kgs.) (Rs.) 69.38 64.57

 

Standard Current year Previous year
(B Consumption per Unit of Production:
1. Electricity (Units)
Textile a) Fabrics on production meters basis No 1.42 1.51
b) Yarn (per kg.) Specific 5.87 5.60
Plastic Containers (per kg.) standard as such 0.56 0.49
Plastic Section (per kg.) The 0.75 0.71
Sheet Moulding (per kg.) consumpt ion 0.52 0.51
Thermoforming per unit 0.00 4.93
2. Gas Consumption (Textile - on production mtr.basis) depends 0.15 0.62
3. Others: (a) Gas (M3) On the
(Textile on production meters basis) Product 0.10 0.25
Plastic Containers (Per kg.) Mix 0.21 0.22
Plastic Sections (Per kg.) 0.02 0.02
(b) L.P.G
Plastic Containers (Per kg.) 0.20 0.21

The variation in consumption in power and fuel was due to a different product mix between current and previous year.

Form - B

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION OF TECHNOLOGY, RESEARCH & DEVELOPMENT

Research and Development (R & D)

1. Specific areas in which R & D carried out by the Company Prefab shops, prefab houses, kiosks, modular toilets, portable toilets, underground water tanks, underground petroleum tanks, septic tanks, package type wastewater treatment systems, bamboo houses etc.
2. Benefits derived as a result of the above R & D. Plastics Division developed various technologies and techniques in the field of plastics for the manufacture of above products.
3. Future plan of action Plastics Division will continue to work on the improvement of major products as well as develop specialized applications on existing processes.
4. Expenditure on R & D Nil
a) Capital
b) Recurring
c) Total
d) Total R & D expenditure as a percentage of total turnover

Technology absorption, adaptation and innovation

1. Efforts, in brief, made towards technology absorption, adaptation and innovation. Efforts are made to improve cost effective technology for productive and quality improvement.
1. Benefit derived as a result of the above efforts e.g. product improvement, cost reduction, product development, import substitution etc. The Plastics Division has introduced a number of new products and opened up new areas of business.
2. Information regarding technology imported during the last five years. Not applicable.
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