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Alps Industries Ltd.

BSE: 530715 Sector: Industrials
NSE: ALPSINDUS ISIN Code: INE093B01015
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OPEN 6.26
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VOLUME 5530
52-Week high 10.35
52-Week low 4.31
P/E
Mkt Cap.(Rs cr) 24
Buy Price 6.26
Buy Qty 470.00
Sell Price 6.54
Sell Qty 500.00
OPEN 6.26
CLOSE 6.50
VOLUME 5530
52-Week high 10.35
52-Week low 4.31
P/E
Mkt Cap.(Rs cr) 24
Buy Price 6.26
Buy Qty 470.00
Sell Price 6.54
Sell Qty 500.00

Alps Industries Ltd. (ALPSINDUS) - Director Report

Company director report

To

The Members

Alps Industries Limited.

Your Directors have pleasure in presentingthe 44th Annual Report togetherwith the Audited Statements of Account of the Company for the financial year ended 31stMarch 2016 in terms of the Companies Act 2013 and rules & regulation made thereunder.

The Financial 'Performance of the Company for the year ended March 312016 issummarized below:

FINANCIAL RESULTS

(Rs. in Millions)
Particulars Year Ended 31.03.2016 Year Ended 31.03.2015
Total Income 5816.03 6426.83
Operating Earnings/Losses before Financial Expenses Depreciation & Amortization and Tax (126.54) 153.02
Finance Cost 0.47 0.35
Depreciation 358.64 447.54
Profit/Loss Before Tax (484.71) (294.87)
Provision for Tax 0.00 0.00
Profit/Loss After Tax (484.71) (294.87)
Exceptional Items 686.94 -
Surplus of last year Add: (9568.15) (9260.77)
Surplus available for appropriation (9365.92) (9568.15)
Appropriations - -
Surplus carried to Balance Sheet (9365.92) (9568.15)
Surplus available for appropriation (9365.92) (9568.15)

OPERATING SCENARIO

At Macro Level - Domestic & Exports

The textile spinning sector which is showing signs of pick up perceives that anyannouncement regarding extension of export benefit for cotton and yarn would definitelylift the sector out of its present paradox. Cotton prices too have started to rise in thelast one month. Annual clothing sales in China expected to exceed $300 million in 2019 up25 per cent from 2014. In comparison apparel sales in the US are estimated to hit $267million in three years meaning China will surpass the US as the world's largest apparelmarket by the end of the decade. The report which compared industry performance in theworld'stwo largest economies says that despite the strengthening of the Chinese yuan andrising raw material and labour costs directly impacting the Chinese clothing market Chinastill continues to be a global leader. The ongoing water scarcity in several parts ofIndia is also expected to have a negative impact on industrial production in the next 2-3months. Overall cotton had a reasonable 2015 for the first time in over 5 years. Cottonstocks were lower than previous year. Low ending stocks and production deceases have beenthe main supporter of cotton prices. The production of cotton has continued to declinedespite rising demand. Cotton continues to lose market share to other fibres. The IndianTextile Industry should gear up to attain its desired position in the global market andthe government is willing to provide all possible support by creating enabling frameworks.India would be exporting about USD 185 billion of textile and apparel by 2025. During thecotton season 2014-15 India became number one in terms of area under cotton cultivationand remains the second largest supplier of Textiles to USA during Jan-Dec 2015 Thetextile industry was literally on fire especially after the green tribunal lifted thoughconditionally the ban on processing units of Rajasthan and Maharashtra as they announcedthe much awaited package of self financed for newly established textile units. Howeverthe market frenzy proved short lived as the industry already under recession since lastmore than one and half years dived to new low due to the fresh wave of uncertainty in thelocal and global markets and absence of clarity in government's textile policy. TheIndian textile industry has been facing a long drawn recession since April 2014 owingtoglobal economic slowdown and higher tariff imposed on Indian textiles and clothingproducts in all the major textile markets when compared to its competing nations likePakistan Bangladesh Vietnam Turkey Cambodia etc. Realizing the need for enhancing thecompetitiveness the Union Government had extended 2% MEIS benefit for all textileproducts other than cotton yarn. The spinning sector has appealed to the government toextend the export benefits for cotton yarn also as the sector is the worst affected dueto surplus capacities. The growth of the textile industry is vital for nationaldevelopment. The industry is yet to achieve its true potential in the global market. The"Make in India" initiative will bring more investments in the sector and createan efficient eco system which will benefit the entire value chain. India's increasingefficiency in the sector along with 100% FDI allowed in the industry is helping Indiantextile firms to consolidate their export position. Under the Export portfolio while theNation celebrates the opportunities under the umbrella of "Make in India" thestory relating to exports is quite gloomy. Data published for the month of January 2016continues to show a declining trend for the consecutive 14th month. Exports of cottontextiles (yarn fabrics made-ups) declined by 5.10% and overall the T&C exportsreached US $ 29.49 billion during April-Jan 2016 almost at par with export performancein the previous year same period. Government is pro-actively supporting the industry ascan be seen in the recent rationalizing of duty draw back rates for blended yarns andblankets and the release of amounts towards interest equalization by co-operative banksit appears to be due to lack of demand arising out of recessionary conditions prevailingin the overseas markets.

At micro level- overall performance

Under the Made-ups division company is continuously starving to be at par with marketlevel as far as growth is concerned. Your company is upgrading products range as well asmarket share continuously. During the year your company is also acknowledged for valueadded products in made up segment. There are several plans to have business relations withreputed buyers. Your company expects good future since demand of cotton & cottonblends products are increasing in the international markets. Your company also gearing up& increasing the efficiencies & capacities to cater the market demand in domesticas well as in overseas markets. The business sentiments are very soft in FurnishingsIndustry both for exports and domestic markets. We hope the next fiscal year seems to bemore optimistic in terms of response from major buyers. Your company have ventured intofire retardant fabrics suitable for hotel industry and Defence sector for technicaltextiles. Your company have also reinvented commodity productsto have good response fromexports as well as domestic buyers.

In the Auto and Technical Textiles segment your company has done well and able toachieve the growth during the previous financial year. We are planning to cater thedemands for Buses & Car Segment also during the current fiscal year. Car Segment'sbusiness largely depends upon the OEM and prices are very competitive and Bus Segment hasalso equal Share of OEMs as well as in the Domestic Market. Your company is focusing moreon to the heavy vehicles segments Technical Textiles and Defence sector since yourcompany expecting change in the policy for procurement of indigenous products. Yourcompany also looking forward to expand the business in other segments like Multiplexes andProtective Clothing during the current financial year. We are expecting the possibilityof re-engineering the product constructions and raw materials utilization mix. In the Yarnsegment we are struggling to achieve the desired results and due to overall slump in theeconomy particularly in the spinning sector your company is facing the acute problems. Allthe efforts are being made to improve the efficiencies financial as well as technical bychanging the existing product mix by introducing some value added product lines to keepthe pace with the domestic and overseas market demands.

However the Hon'ble National Green Tribunal (N.G.T.) vide its order dated January 272016 had directed to stop the operations of unit having spinning and dying facilitieslocated at Plot No. 1A Sec. 10 I.I.E SIDCUL Haridwar Uttarakhand till furtherorders. Accordingly the operations of the said unit had been stopped. It was alleged thatthe unit was discharging effluent in excess of the norms and hence polluting water. Thecompany had filed the revision application with Hon'ble N.G.T. to withdraw the saiddirections on the basis that it has an agreement with CETP and SIDCUL for furthertreatment of its effluent. The Company had closed the entire plant and again approachedHon'ble National Green Tribunal (N.G.T.) with a request to the reopen the spinning plantwhich is a non-polluting. The Hon'ble National Green Tribunal (N.G.T.) has consideredrequest of the company and vide its Order dated March 31 2016 has allowed the re-openingof Spinning plant subject to the condition that this unit shall start its operation onlyafter getting the new electro-meter installed separately for this unit and to takepermission from Ground water authorities. The necessary compliance of the Order has beentaken care and the Spinning section has started functioning since then. However thecompany is exploring possibilities to start the Dying House section also. Due to this thefinancial performance of the unit has been affected. However to improve the adverseconditions we are planning to introduce some new product range like Polyester cottonblended/ PC Grindle yarns which has better EBIDTA margins slub PVAetc. One of thesegments of the company i.e. Vista in domestic market has earned an enviable reputationand is the market leader in window dressing range of products which are well known in thedomestic market for its world class quality & continuous innovations in the segment.Under this product range which are crafted with absolute focus towards customer's needsand desire company has introduced various new products like Carpet tiles HospitalCurtains New Gallery & window blinds Mellee Medley & Milange for residentialsectors new shades in Naturons S-contour & Sheer dimout blinds New mechanism called"Top Down Bottom Up" have been introduced in cellular blinds range rollerblinds etc. apart from various other customer-friendly services like aftersale services tothe buyers free home deliveries arranging for spare parts & its installation at thedoor of the customers to boost the market share. The Carpet tiles are emerging trends infloor covering. Owing to its ease of maintenance the trend is gripping up in commercial aswell as in residential sectors. Its maintenance includes regular vacuuming only. VistaCarpet tiles are available in two base materials; PP & Nylon in different shades tochoose from. The range encompasses Bendable Curtain Track Decorative Curtain TrackHospital Curtain tracks and many more. The range of curtains is appreciated for theirsmooth & noiseless movement longer functional life and easy installation. Theseproducts find application in hospitals hotels houses offices etc. Vista laminatedflooring capturing design appeal and elegance with special attention to physical textureand it consists of full textural coverage. With continuous urge of giving the best to theconsumer vista has made a mark in the market for its classy elegance and durability. Thenatural variations and randomness found in flooring is indicative of perfection.

During the period under review your company could not maintain the EBIDTA which dropsto Rs.(126.54) millions in comparison to Rs 153.02 million in previous year due to variousunavoidable factors various operational challenges in the production and marketing frontlike decrease in the margin of yarn closure of the operations of unit having spinning anddying facilities located at Plot No. 1A Sec. 10 I.I.E SIDCUL Haridwar Uttarakhand bythe Hon'ble National Green Tribunal (N.G.T.) vide its order dated January 27 2016 duringthe financial year 2015-16 Due to this the financial performance of the company has beenaffected adversely. The impact of measures for improvement in the performance taken placeduring the year will be reflected in the current year's financial parameters. However dueto Exceptional Net income of Rs.686.94 millions the company has earned Net Profit of Rs.202.23 millions during the year under review.

FUTURE OUTLOOK-TECHNICAL FRONT

In the Made-up divisions your company is planning to upgrade the production facilitiesby replacing old machines with latest in market to give better quality products. AtHaridwar Plant we have been able to maintain the balanced technical performance in termsof utilization and productivity during the financial year under consideration. The Companyis also focusing on technically special PU coated fabric and TPU membrane laminationwhich provides excellent water proof and moisture vapor transmission. These fabrics havinghigh technicality involved to fulfill the demands of Indian Defence and also useful forhigh altitude temperature. At Haridwar unit your company is focusing on improving plantperformance in general and to produce quality oriented yarns for higher segment. Howevercompany is planning for technology up gradation of old plant in the phased manner.

RESTRUCTURING/ REHABILATATION OF THE COMPANY UNDER THE PROVISIONS OF CDR AND THE SICKINDUSTRIAL COMPANIES (SPECIALPROVISIONS) ACT1985 (SICA).

In Aug 2009 while the company was facing liquidity crunch a restructuring scheme wassanctioned and implemented under the Capital Debt Restructuring (CDR) mechanism set up byReserve Bank of India. The main features of the scheme among others were the conversion ofa portion of debt/ liability into OCCPS/ CRPS extension of debts repayment period andreduction of rate of interest. In the mean time due to erosion of the Net Worth of thecompany as per Audited Accounts as of 31st March 2010 the Company filed a reference withHon'ble BIFRfor its rehabilitation under Section 15(1) of Sick Industrial Companies(Special Provisions) Act 1985 (SICA) which was registered vide Case No. 32/2010 as perBIFR's letter dated June 29 2010 and vide BIFR's order dated 06.12.2010 company has beendeclared as a "Sick Industrial Company". Vide same order State Bank of Indiahas been appointed as the Operating Agency (O.A.) and Hon'ble BIFR also directed toprepare and submit a fully tied up Draft Rehabilitation Scheme for the revival of thecompany. Afterwards due to another setback faced by the company in the year 2011 theCDR Scheme was reworked and was partly implemented while the remaining part of the packagewas to be implemented after the approval of Hon'ble BIFR. However the case of the companyhas been withdrawn by CDREC w.e.f. November 162012.

State Bank of India the operating Agency has filed the Draft Rehabilitation Scheme(DRS) for the rehabilitation of the company with Hon'ble BIFR on 07.07.2011 asrecommended by the majority of lenders in their Joint Lenders Meet (JLM) held on 15thJune'2011 and by the Statutory Agencies in their meet held on 5th July'2011 from whomcompany sought some reliefs and concessions in the DRS however in view of the developmentstaken place afterwards the Hon'ble BIFR has directed to file the updated DRS for itsconsideration.

Accordingly company has filed the updated DRS which has been approved by the majorityof secured lenders of the company in their Joint meeting held on 29th Nov 2014 accordinglythe State Bank of India (OA) has recommended the Draft Rehabilitation Scheme of thecompany to the Hon'ble BIFR for its circulation. The said DRS is under consideration ofthe Hon'ble BIFR.

The restructuring forming part of DRS which is under consideration of Hon'ble BIFRprimarily envisages upfront waiver of outstanding unpaid interest towards secured andunsecured loans from Banks/ARC/Financial institutions payment of principal outstanding ofBanks/FI/ARC's sustainable debts in a staggered manner over a period extending up to31.3.2022 on interest free basis partly in cash as aligned with the future cash flow ofthe company and partly by issuance of fresh equity and the unsustainable portion of debtsto be settled partly by issuance of debt instruments and upfront equity and the balance tobe waived.

The restructuring also envisages waiver of outstanding interest payable on loan fromsubsidiary companies and subvention of the principal loan till the currency of the schemeperiod.

In view of consent of majourity of secured creditors (comprising more than 83% of thesecured debts of the company) to the Draft Rehabilitation Scheme pending considerationbefore Hon'ble BIFR no provision for interest on secured/unsecured loans ofBanks/Fis/ARCs/Subsidiary Companies has been made from the Financial Year 2014-15 onwards.Further the financial impact of the waivers of outstanding interest part waiver ofoutstanding principal eligible till the end of current financial year i.e. 31.3.2016 asevisaged in the scheme pertains to the lenders who have already accorded their consent tothe restructuring has bee considered in these financial statements.

CREDENTIALS/CERTIFICATIONS

With the contribution and efforts of all concerned the various credentials have beenrenewed /continued during the period under review viz.:

? Certificate for ISO/TS 16949:2009 for manufacturing seat fabrics for the automotiveapplication.

? Certificate for Oeko-Texfor Hohenstein Textile Testing Institute Germany

? Certificate for ISO 9001:2008 and ISO 14001:2004 for the management systemimplemented renewed by Afnor

? Certification for the period 2013 to 2015 covering the manufacturing activities i.e.Spinning Weaving and Processing of Yarn Fabric and Home Furnishing and Coating (fireretardant curtain fabric upholstery and stain proof fire retardant upholstery cloth forthe company's units situated at Haridwar and Meerut).

? Certificate of Compliance of standards issued by the CU Inspections &Certifications Private Limited.

? Membership of Federation of Indian Export Organizations

MEASURESTOREDUCE/CONTROLCOST

To meet out the market competitiveness and improve the financial performance thecompany is committed to reduce the cost upgrade the efficiency and ensure optimumutilization of the current as well as fixed assets of the company. On technical frontyour company is continuously try to achieve the reduction in raw material cost by makingdifferent composition of mixing/purchase of cotton through commodity exchange increase inmachine productivity better yarn yield with optimum use of raw material control wastegeneration to bare minimum and best use of work force best utilization of capacity withlowest Raw Material Costand good quality of end product to fetch best yarn price. Theunits located at Meerut and Haridwar have taken various important steps which includesbuying of raw material in bulk quantity directly from suppliers after proper negotiationand studying market prices reducing the fixed overheads increase the utilization andefficiency of machineries to reduce the cost standardize the production process flowchart to avoid the rejection maintain the inventory level as per the requirementconstant check on power consumption controlling/reducing rejections & re-processingreusing/recycling all possible items strict follow-up on regular maintenance schedule toavoid major break downs increasing overall efficiency to reduce production cost usinglow consumption LED lights. In order to reduce the substantial logistic cost the companyis optingfor land ports nearestto the units. Transportation cost reduced by finalizing thetransport & courier contracts at best possible lowest rates for the goods movement ofthe Units. The unit located at Meerut has also optimized its cost structure by way ofstrong emphasis on consumption and control of waste reduction & rationalizationinventory control & Manpower optimization. Developed Special flat inspection machinefor inspection of fabric on similar method as buyer to save the overhead considerably onthe inspection of material reduced the soft water consumption through recollecting theusable hot water and also by setting the machine liquor ratio reduction in coatingchemical cost. In Made up division your company have implemented strict monitoring of thestocks by analyzing the in minimum lead time. Energy audit observations and suggestionsby competent agency were also implemented at the Hardwar unit during the period underreview to save the Energy cost.

STATUS OF HOLDINGS OF SUBSIDIARY COMPANIES

During the year under review there is no change in the status of subsidiary companies.As per Section 2(87) of the Companies Act 2013 after considering the indirect holdingthrough it's another subsidiary (Alps USA Inc.) the percentage of shareholding continuedto be 78.22% in Alps Energy Pvt. Ltd. and 81.65% in Snowflakes Meditech Pvt. Ltd. In termsRegulation 23 & 24 of the SEBI (Listing Obligations and Disclosure Requirements) 2015Mr. Prabhat Krishna (DIN No.02569624) Independent & Non Executive Director of theCompany continues to be representative director in the aforesaid indian "Materialsubsidiary" companies duringtheyear.

FINANCIAL STATEMENTS OF SUBSIDARYCOMPANIES

The company continued to have three subsidiaries at the end of the financial year viz;M/s. Alps Usa Inc. M/s. Alps Energy Pvt. Ltd. and M/s. Snowflakes Meditech Pvt. Ltd. Asrequired under Section 129(3) of the Companies Act 2013 and applicable rules theFinancial Statements of all three Subsidiaries Companies are being annexed.

GOVERNMENT INITIATIVES- TEXTILE SECTOR

In the Union Budget 2016 the Central Excise Act the Government have imposed exciseduty on readymade garments and made up textile articles falling under some specifiedChapters of the Central Excise Tariff. The duty is leviable on branded items of garmentsand made up articles having MRP of Rs. 1000/- and more. There are options to pay exciseduty @ 2% (without CENVAT credit) or 12.5% (with CENVAT credit facility). It is to applyto all readymade garments and made ups regardless of the composition of thegarment/article. The tariff value for readymade garments and made ups is fixed at 60% ofMRP. There is no change in the peak rate of customs duty this year. This Measure will helpto bring down the input cost for several technical textiles manufacturers in the Country.Basic Custom Duty on import of Fabrics reduced to zero. Also the string attached to thisfacility that the total value of goods imported shall not exceed one percent of the Freeon Board(FOB) value of textile garments exported during the preceding financial year. TheMinistry has received Rs. 4594.82 crores for the upcoming financial year to support itsvarious schemes covering the entire textile industry. In 2015-16 it was Rs.4326.44crores. The flagship ATUF Scheme has been allocated Rs. 1480 crores for FY2016-17 comparedto Rs. 1510.79 crores in the FY 2015-16. Apart from ATUFS all central funded schemes fortextile sector have received required allocation of funds. The Government's focus on thefarmer and rural sector is expected to boost the economic health of rural India which inreturn will improve consumption of textiles and apparels. Significantly large expenditureby the government in the rural and agricultural sector will stimulate demand. Domestictextile market size is anticipated to grow significantly driven by increased consumptionfrom rural and semi urban areas in the next 2-3 years. The government aims to double farmincome by 2020 making farming a more lucrative activity. This should address the problemof high suicide rates among farmers especially cotton farmers with regard to textileswhich was the main demand of association. The Government has allocated Rs. 1480 crores forTechnology Upgradation Fund Scheme. These additional funds would be required to meet thepending subsidies since September 2014. On the various benefits extended for the skilldevelopment and job creation in the Nation government has hailed EPF benefit of 8.33% forthe new entrants in the EPF. This would significantly improve the compliance and alsoensure social security of the Employees. Once GST is introduced the whole value chainwill be covered by duty and traceability as well as compliance will improve tremendouslyand implementation problems will also ease considerably.

DIVIDEND

Due to inadequate profits during the financial year ended on March 31st2016 no dividend has been recommended by the Board of Directors.

TRANSFERTO THE INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 124 of the Companies Act 2013 there was no unclaimed dividendrelating to the financial year 20142015 which was due for remittance during the financialyear 2015-2016. Hence no amount due to be transferred to the Investor Education andProtection Fund established by the Central Government.

DECLARATION BY INDEPENDENT DIRECTORS

All the Independent directors viz. Mr. Prabhat Krishna Mr. Pradyumn Kumar Lamba Mr.Tilak Raj Khosla and Ms. Deepika Shergill have submitted their disclosure to the Boardthat they fulfill all the requirements as to qualify for their continuity of appointmentas an Independent Director under the provisions of the Companies Act 2013 as well asRegulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) 2015.

RISK MANAGEMENT PLAN

In compliance of Regulation 17 of the SEBI (Listing Obligations and DisclosureRequirements) 2015 related to corporate governance Risk Management plan of the companyrecognizes that the Enterprise Risk Management is an integral part of good managementpractice. Hence Risk Management is an essential element in achieving business goals. Interms of Policy the Company is committed for managing the risk in a manner appropriate toachieve its strategic objectives. The Company will keep investors informed of materialchanges to the Company's risk profile through its periodic reporting obligations and adhoc investor presentations. The Company reviews and reports annually on its compliance ofCorporate Governance Principles and recommendations for betterment which include RiskManagement and the internal control framework. Accordingly the Company has framedprocedures to inform members of Board of Directors about risk assessment and minimizationprocedures.

POLICY FOR DETERMINATION OF "MATERIALITY".

In terms of the provisions of Regulation 30 Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 the Company hasframed a policy for determination of "Materiality" and the Board of Directorshas appointed the company secretary & compliance officer as the Materiality Officer totake care of the relevant compliances.

POLICY FOR PRESERVATION OF DOCUMENTS

In terms of the provisions of Regulation 9 Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 the company has frameda policy for preservation of documents.

WHISTLE BLOWER POLICY/VIGILMECHANISM

In terms of section 177 of the Companies Act 2013 and Regulation 22 of the SEBI(Listing Obligations and Disclosure Requirements) 2015 the company has established aVigil Mechanism policy for the Directors and Employees to report genuine concerns in suchmanner as may be prescribed and such a vigil mechanism has provided for adequatesafeguards against victimization of persons who use such mechanism and make provision fordirect access to the Chairman of the Audit Committee in appropriate or exceptional casesinstances of unethical behavior actual or suspected fraud or violation of the company'scode of conduct etc. This neither releases employees from their duty of confidentiality inthe course of their work nor can it be used as a route for raising malicious or unfoundedallegations against people in authority and/or colleagues in general. The scope of thepolicy covers malpractices and events which have taken place/suspected to have takenplace misuse or abuse of authority fraud or suspected fraud violation of company rulesmanipulations negligence causing danger to public health and safety misappropriation ofmonies & assets of the company and other matters or activity on account of which theinterest of the Company is affected and formally reported by whistle blowers concerningits employees.

NOMINATION & REMUNERATION EVALUATION BOARD DIVERSITY POLICY & FAMILIARIZATIONPROGRAMME FOR INDEPENDENT DIRECTORS.

As mandated by the statutory provisions contained under section 178 of the CompaniesAct 2013 and Regulation 19 of the SEBI(Listing Obligations and Disclosure Requirements)2015 Nomination & Remuneration Committee of the Company has already formulated whichis force as on date. This policy contains guidelines on nomination and remuneration ofDirectors Key Managerial Personnel (KMP) and Senior Management Personnel of the Companyand Evaluation and Board Diversity policy for directors. This policy may be treated as abenchmark for determining the qualifications positive attributes and independence of aDirector criteria for evaluation of Independent Directors and the Board matters relatingto the remuneration appointment removal and evaluation of performance of the DirectorsKey Managerial Personnel and Senior Management Personnel of the Company. To provideinsights into the Company to enable the Independent Directors to understand the Company'sbusiness in depth that would facilitate their active participation in managing theCompany Familiarization Program have been formulated and introduced by the Company tosimplify the understanding of various responsibilities and rights of the IndependentDirectors duringthe year under review.

SHARE CAPITAL

Duringthe year under reviewthere is no change in the capital structure of the company.

RELATIONSHIP WITH INVESTORS

To have the participation by all the valued investors in the voting pattern for anyproposal and in terms of the compliance of the Section 108 of the Companies Act 2013 andCompanies (Management and Administration) Rules 2014 made thereunder and in terms ofRegulation 44(1) of the SEBI (Listing Obligations and Disclosure Requirements) 2015 thecompany has made arrangements for e-voting facility through which any investor canparticipate in the AGMs through e-voting and need not struggle to attend the meetings inperson.

Further in terms of Regulation 20 of the SEBI (Listing Obligations and DisclosureRequirements) 2015 and Section 177 of the Companies Act 2013 and Companies (Meetings ofBoard and its Powers) Rules 2014 made thereunder the Company has framed StakeholderRelationship Committee which is fully committed and accountable to the valued investorswho have reposed the confidence in the company by investing their hard earned money in thecompany and supported the management in such acrucial time.

The relationship with the investors continues to be cordial. Your company's managementis fully aware and dedicated for survival of the company and committed to take all effortsto resolve the investors' grievances received duringthe year to the satisfaction of theinvestors within a reasonable time. M/s Alankit Assignments Limited the R&T Agent ofthe company continued to extend their positive contribution to resolve the Investors'grievances efficiently and effectively whenever they arose. By contribution from allconcerned the investor grievances have been resolved to the fullest satisfaction ofinvestors. We sincerely place on record the appreciation for our valued investors whohave contributed and reposed the confidence in the company at this difficult time. Themanagement not only believes in legal compliance related to the investors but alsomorally protects their interest and treats them as part of Alps Group. In its endeavor toimprove investor services your Company has created an investor section and designatedexclusive E-Mail ID for the purpose of registering complaints by investors and necessaryfollow up action by the company/compliance officer in compliance with Regulation 36 of theSEBI(Listing Obligations and Disclosure Requirements) 2015. The e-mail ID is:investorsgreviences@alpsindustries.com

MANPOWER-VALUABLE ASSETS

Human Resources are the key assets of Alps and management endeavors continuously tobuild a self motivated and self disciplined workforce by its unconditional support forbuilding the right performance oriented culture under the leadership of its key managementpersonnel. The significant HR initiatives taken during the Financial Year includesreorganizing the Structure with defining the Roles of Business Heads. The initiative isshowing improvements with improved accountability coordination and focus. A robust talentpipeline and a high-performance culture centered on accountability in place enable usto retain our competitive edge. Your company is continuously benchmarking its HR practiceswith the best of those exists across the industry and keep carrying out necessaryimprovements to attract and retain the best talent. The company has been reviewing thevarious Policies related to employees periodically considering the needs of its employeestreating its human resources as its valuable assets. It helps the employees to focus ontheir assignments instead of bothering for hygiene and give their best to theorganization. Consistent efforts are being made to optimize the utilization of availablehuman resources through regular monitoring of the Manpower at various locations indifferent businesses clearly define the job responsibilities so as to avoid over-lappingalso key results areas and key performance indices for better focus and assessment of thecontributions and its alignment with the business objectives fair implementation of theHR Policies. Efforts continued to be made to improve the female workers/employees ratioparticularly at the shop floor in-line with the national policy of gender equality andpolicy to restrict the sexual harassment is also being implemented in line with thegovernment directions. The company's concerns for welfare of its workforce continuedduring the year and accordingly Croup pension/Accident Insurance policy/ESI/WC policieswere continued further as in the past. The company has been consistently maintainingharmonious & cordial relations with the employees at all the locations. The Companycontinues to lay emphasis on building and sustaining an excellent organizational culturefocusing on performance. During the year the Company employed on an average 1675employees (2300 during previous year 2014-15). The reduction in the employees'strength ismainly due to the challenge faced by our Yarn Dyeing facility at Plot No. 1A Sec.101.I.E SIDCUL Haridwar Uttarakhand which stopped its operation because of directionsof NGT New Delhi. However pursuit of proactive policies industrial relations hasresulted in a peaceful and harmonious situation on the shop floors of the various plants.

BOARD OF DIRECTORS- CHANGES /REAPPOINTMENTS REAPPOINTMENT OF NON-INDEPENDENT DIRECTORSBY ROTATION

In terms of the provisions of Section 152 of the Companies Act 2013 and Companies(Appointment and Qualification of Directors) Rules 2014 & Article No. 106107 &108 of the Articles of Association of the Company Mr. Sandeep Agarwal Managing Director(DIN No.00139439) recommended by the Board of Directors at their meeting held on May 302016 for re-appointment who retires by rotation and eligible for re-appointment and offerhimself for reappointment at the ensuing Annual General Meeting. The disclosures asrequired under the Companies Act 2013 and Regulation 17 of the SEBI (Listing Obligationsand Disclosure Requirements) 2015 related to Corporate Governance published elsewhere inthe Annual Report.

SPECIAL DIRECTOR-BIFR

The appointment of Mr. Mohan Lai Sharma (DIN No. 03110692) as Special Director by Boardof Financial Reconstruction who was appointed as Special Director on February 18 2011has been withdrawn and discharged from his duties by BIFR w.e.f. 03.02.2016 as intimatedto Company vide letter dated 19.02.2016duringthe period under review. Hence he has beendisassociated with the company w.e.f. 03.02.2016. Board places on record its appreciationfor the valuable services/advices extended by him during the tenure his association withthe company.

KEY MANAGERIAL PERSONEL

During the under review as required under section 203 of the Companies Act 2013 andapplicable rules there are no changes in the existing KMP's of the Company during theunder review viz. Mr. Sandeep Agarwal (Managing Director) Mr. Ashok Kumar SinghalPresident (Corp. Accounts) and Mr. Ajay Gupta (Company Secretary & GeneralManager-Legah.Hence they continued to be KMP's of the Company.

INTERCORPORATE LOANS GUARANTEES AND INVESTMENTS

During the year under review company has not given any Inter Corporate LoansGuarantees and Investments covered under section 186 of the Companies Act 2013.

CORPORATE SOCIAL RESPONSIBILITY

As per provisions under Section 135 of the Companies Act 2013 all companies havingnet worth of Rs. 500 crores or more or turnover of Rs. 1000 crores or more or a netprofit of' Rs. 5 crores or more during any previous three financial year are required toconstitute a Corporate Social Responsibility (CSR) Committee of Board of Directorscomprising three or more directors at least one of whom should be an Independent Directorand such Company shall spend 2% of the average net profits of the Company made during thethree immediately preceding financial years. Due to net profit earned by the companyduring the financial year 2015-16 your company needs to comply with the aboverequirements. Accordingly CSR Committee has been constituted by the Company comprising Mr.Prabhat Krishna (Chairman) Mr. Sandeep Agrawal Managing Director and Mr. P.K. LambaIndependent Director as other members of the Committee. The CSR Committee will frame aCorporate Social Responsibility Policy (CSR Policy) furtherto be approved by the Boardindicatingthe activitiesto be undertaken by the Company to fulfill the expectation of ourStakeholders and to continuously improve our social environmental and economicalperformance while ensuring sustainability and operational success of our Company. TheCompany would also undertake other need based initiatives in compliance with Schedule VIIto the Companies Act 2013 and Companies (Corporate Social Responsibility Policy Rules20I4.

RELATED PARTY TRANSACTIONS

In terms of the Section 188 Companies Act 2013 and Companies (Meetings of Board and itsPowers) Rules 2014 and further in terms of Regulation 23 of the SEBI (Listing Obligationsand Disclosure Requirements) 2015 related to the corporate governance company hasformulated Related Party Policy of the company. During the year under review company hasentered into related party transactions which are at the market prevailing prices and onarm's length basis and are in its ordinary course of business. The details of thetransactions are annexed elsewhere in the report. Hence there are no conflicts of interestand in compliance of company policy related to Related party transactions.

DIRECTORS'RESPONSIBILITY STATEMENT

In compliance with the provisions of Section 134(5) of the Companies Act 2013 theBoard confirms and submits the Directors' Responsibility Statement:

(a) In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relatingto material departures;

(b) The directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the financial year and ofthe profit and loss of the company for that period;

(c) The directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the company and for preventing and detecting fraud and other irregularities;

(d) The directors had prepared the annual accounts on a going concern basis; and

(e) The directors in the case of a listed company had laid down internal financialcontrols to be followed by the company and that such internal financial controls areadequate and were operating effectively which means the policies and procedures adopted bythe company for ensuring the orderly and efficient conduct of its business includingadherence to company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information;

(f) The directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

PARTICULARS OF EMPLOYEES

In terms of Section 197 of the companies Act 2013 and applicable Rules made thereunder the details of the employees who were drawing in excess of the highest paid WholeTime Directors are enclosed as Annexure I.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

Information in accordance with the provisions of Section 134 (3) (m) of the CompaniesAct 2013 read with Rule 8(3) of the Companies (Accounts) Rules 2014 regardingconservation of energy technology absorption and foreign exchange earnings and outgo isgiven in the statement annexed (Annexure-ll) here to and forms part of this report.

COST AUDIT REPORT

In compliance of Notification Reference No. CSR No. 01(E) on January 12015 andCompanies (Cost Records and Audit) Rules 2014 Companies (cost records and audit)Amendment Rules 2016 issued by the Cost Audit Branch under Ministry of Corporate Affairsand further in terms of the Powers conferred by Section 148 of the Companies Act 2013Company had appointed M/s. Neeraj Sharma & Co. Cost Accountants (Firm Regn. No.100466) to submit the Cost Audit Report duly approved by the Board of Directors to theCentral Government for the financial year ended on March 31 2016 for the products whichare specified in the Notification No. GSR No. 01(E) on January 12015 and Companies (CostRecords and Audit) Rules 2014 as amended from time to time. The Cost Audit report will befiled by the company within the due date i.e. on or before September 27 2016 being 180days from the close of the financial year or as may be extended by the department fromtime to time as provided by the M/s. Neeraj Sharma & Co. Cost Accountants being thecost auditors for the financial year 2015-16.

COST AUDITORS

In compliance of Notification Reference No. GSR No. 01(E) on January 1 2015 andCompanies (Cost Records and Audit) Rules 2014 as amended form time to time M/s. PramodKumar & Co (Firm Regn. No.104022) Cost Accountants Ghaziabad firm of CostAccountants has been appointed as the Cost Auditors of the company under Section 148 ofthe Companies Act 2013 for the next financial year ended on March 312017 at the meetingof Audit Committee and Board of Directors of the company held on May 30 2016 in place ofthe existing Cost Auditors M/s Neeraj Sharma & Co. (Firm Registration No. 100466) toreduce the cost and other operation convenience to the company. It has been confirmed bythe proposed Cost Auditors that the necessary compliance related to the change in theAuditors as specified by the Institute of Cost Accountants of India and the Cost and WorkAccountants Act 1959 has been complied with. As required under Section 148 of theCompanies Act 2013 the ratification for their appointment & remuneration has beenrecommended at the forthcoming Annual General Meeting of the company. However it isstrictly applicable in terms of any Notifications/Circulars related to Cost Records andCost Audit Rules as may be specified at any time by the MCA or any regulatoryauthorities. If due to any reasons the mandatory requirements abolish then continuationof the appointment of Cost Auditors will be at the discretions of the board of directorsas per the requirements of the company.

STATUTORY AUDITORS

M/s. R.K. Govil & Co. Chartered Accountants (Firm Registration No. 000748C) theStatutory Auditors of the Company completes the First term one year out of four years asapproved at the Annual General Meeting of the Company held on September 30 2015. Now theyhave further confirmed their eligibility and willingness to accept office if they getapproval for ratification for the reappointment for remaining term of three years out ofalready approved term of four years at the forthcoming Annual General Meeting. Thecompany has received certificates from the said auditors to the effect that theirconfirmation if made would be within the limits prescribed under Section 141 of theCompanies Act 2013. Your Directors recommend their confirmation under Section 139 of theCompanies Act 2013 and Companies (Audit and Auditors) Rules 2014 for a further period of3 years i.e. till the conclusion of 47th Annual General Meeting.

INTERNAL AUDITORS

In terms of Section 138 of the Companies Act 2013 and Companies (Accounts) Rules2014 M/s. Anil Nupur & Co. Chartered Accountants (Firm Regn. No. 007626N) theBoard of Directors at their meeting held on February 12 2016 has appointed as theInternal Auditors of the Company for the financial year 2016-17 to submit the internalaudit reports from time to time.

FIXED DEPOSITS

During the year your company has not raised any money by way of Fixed Deposits.

CORPORATE GOVERNANCE

A report as per the requirements of Regulation 27 of the SEBI (Listing Obligations andDisclosure Requirements) 2015 on the Corporate Governance practices followed by theCompany and the Statutory Auditors' Certificate on Compliance of mandatory requirementsalongwith Management Discussion and Analysis is given as an Annexure III to this report.The mandatory information under corporate governance is annexed as Annexure-IV. It hasalways been the endeavor of your company to practice transparency in its management anddisclose all requisite information to keep the public well informed of all materialdevelopments.

ABSTRACT OF THE ANNUAL RETURN

In terms of section 92 of the Companies Act 2013 the extract of the Annual Return as onit stood on the close of the financial year2015-16 being attached with the DirectorsReport as Annexure V.

SECRETARIAL AUDIT REPORT/SECRETARIAL AUDITORS

In terms of the Section 204 of the Companies Act 2013 and Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Board of Directors at their meetingheld on November 09 2015 company has appointed M/s. CSK & Co. Company Secretaries toprovide the Secretarial Audit Report for the Financial year ended on Mach 31 2016. Incompliance of aforesaid requirement they have provided the Secretarial Audit Report whichhas been annexed with Board report as Annexure VI.

Further the existing Secretarial Auditors have also been appointed for the financialyear 2016-17 at the meeting of Audit Committee & Board of Directors held on May 302016.

AUDITORS'OBSERVATIONS

There are no Audit qualifications for the year under review. Hence the requirementunder Regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) 2015and further amended by SEBI circular CIR/CFD/CMD/56/2016 May 27 2016 for Statement onImpact of Audit Qualifications are not applicable to the company.

GENERAL DISCLOSURES

No disclosure or reporting is required in respect of the following items as there wereno transactions on these items during the year under review:

1. Details relating to deposits covered under Chapter V of the Companies Act 2013.

2. Issue of equity shares with differential rights as to dividend voting or otherwise.

3. Issue of shares (including sweat equity shares) to employees of the Company underany scheme save and except ESOS referred to in this Report.

4. Neither the Managing Director nor the Whole-time Directors of the Company receiveany remuneration or commission from any of its subsidiaries.

5. No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future.However the Orders passed by SEBI and Uttarakhand by the Hon'ble National Green Tribunal(N.G.T.) detailed elsewhere in the Annual report.

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

ACKNOWLEDGMENT

Your Directors take this opportunity to thank the Financial Institutions Banks Boardfor Industrial and Financial Reconstruction (BIFR) ARCs Reserve Bank of India Centraland State Governments Authorities Regulatory Authorities Hon'ble National GreenTribunal Securities Exchange Board of India Stock Exchanges Stakeholders Customers andVendors for their continued support and co-operation and also thank them for the trustreposed in the Management. Your Directors also wish to thank all the employees of theCompany for their commitment and contributions. Your Directors also wish to place onrecord their appreciation towards all associates including Customers Suppliers andothers who have reposed their confidence in the Company. Your Directors look forward totheir unsustained support in future also.

For and on behalf of the Board of
Alps Industries Limited
Place : Ghaziabad P.K. Rajput Sandeep Agarwal
Date : May 30 2016 Executive Director Managing Director
DIN - 00597342 DIN - 00139439

ANNEXURE-I

Particulars of employees under Section 197 of the Companies Act 2013 and applicableRules made there under in excess of the highest paid Whole Time Directors as on March 312016.

(Amount in Ruoees)

NAMES OF EMPLOYEES DESIGNATION REMUNERATION RATIO BETWEEN ED REMUNERATION AND EMPLOYEES
P K Rajput Executive Director 112000
1. Mr. Mukesh Garg G.M. (Mktg) 112684 1.00
2. Mr. Nafis Saiyed AVP (Marketing) 117475 1.04
3. Mr. Shubhashish Mukhopdhyay# DGM (Q.A.) 118625 1.06
4. Mr. Sanjiv Malik Sr. Vice President (Operations) 119549 1.07
5. Mr. Vivek Rastogi# DGM (A/cs. & Comml) 120764 1.08
6. Mr. Mukesh Jain# D.G.M. (Mktg.) 123200 1.10
7. Mr. Sandeep Nahar D.G.M. (Mktg.) 125150 1.11
8. Mr. Ashok Kumar Singhal President Corp. (Accounts) 125527 1.12
9. Mr. Ramesh Errolla G.M. (Design Studio) 126250 1.13
10. Mr. Chetan Agarwal G.M. (Finance) 127243 1.14
11. Mr. Mukul Mittal V.P. (Prod.) 134312 1.20
12. Mr. Himanshu Bhardwaj AVP (Ready Made Marketing - Corporate) 137146 1.23
13. Mr. Mahen Kaushik AVP (Commercial & Accounts - Haridwar) 144853 1.30
14. Mr. Anil Kr. Jain# V.P (Processing) 148586 1.32
15. Mr. Sanjeev Singhal# CM (A/cs. & Comml) 149500 1.33
16. Mr. Senthil Kumar# DGM (Technical Textile Marketing - Corporate ) 153550 1.37
17. Mrs. Seema Dutta G.M. (Finance) 158204 1.42
18. Mr. Anish Kumar Rai Sr. Vice President (Sale & Admin) 159311 1.56
19. Mr. Kamlesh Kumar Verma Vice President - HR (Corp.) 167917 1.51
20. Mr. P K Dhawan Vice President (Maintenance) 178057 1.59
21. Mrs. Raman Garg Vice President (MIS) 195952 1.76
22. Mr. Rajesh Sehgal Vice President (Yarn Mkt.) 199750 1.78
23. Mr. Dinesh Manuja# Sr. Vice President (Yarn Mkt.) 209962 1.87
24. Mr. B D Sharma Sr. Vice President (Operations) 214250 1.91
25. Dr. Anil Jain# Head (Manu. Excellence) 217450 1.94
26. Mr.KVH Rao# Sr. Vice President (Operations) 225260 2.03
27. Mr. Satendra Singh# Sr. Vice President (Operations) 296749 2.65
28. Mr. Amitabh Sen Sr. Vice President (Decorative Fabric & Unit Head - Meerut) 314436 2.82

Note : The Median remuneration of the employees of the company is INR 10187/- P.M.and ratio w.r.t. Whole Time Director comes to 0.090.

2.# employed partly during the year.

ANNEXURE-II

ANNEXURE TO THE DIRECTORS' REPORT

(I) Statement of particulars pursuant to Companies (Disclosure of Particulars in theReport of Directors) Rules 2014.

1. Conservation of Energy

a. Energy conservation measures taken : Energy conservation continues to be an area of major emphasis in your Company. Efforts are made to optimize the energy cost while carrying out the manufacturing operations. All the units have taken various measures in conservation of energy. The thrust is to measure the existing system parameters and then implement improvements. The Company also focus to optimize the operation of various equipments which also lead to energy conservation. The following are some of the major measures which continued to be implemented during the period under review for bringing down the energy cost:
• Installed AC drives at Comber Main stream fan.
• Installed LED light in major consumption centers.
• Heat Exchanger Install in Dye House.
• Energy Efficient Motors installed.
• Replacement of Aluminium Fan with Energy Saving FRP Fan.
• Power from Open Market through energy exchange is purchased to reduce electricity consumptions.
• To separate the thermopac and thermopac line for stenter which causes improvemnt in Speed efficiency and production.
• Development of double folding inspection machines with automize function to reduce the process time.
• Designing and fabrication of special double inspection machine for the inspection of coating fabric and special flat inspection machine for Inspection the fabric as similar method as of buyer.
• Planning to change machine drive belt pulleys of Ring Frames wherever applicable Continuous effort to reduce air leakages in orderto reduce compressor units.
• Continuous emphasis on process optimisation emphasis on preventive maintenance waste reduction etc.
b. Additional investments and proposals if any being implemented for reduction of consumption ofenergy. : Rs NIL
c. Impact of measures at (a) & (b) above for reduction of Energy consumption and consequent impact on the cost of production of goods. : As a result of various energy conservation measures taken by the company the expected outcomes are:
• Increase in productivity.
• Reduction in energy consumption.
• Optimum loading of captive water sources.
• Increase in Efficiency.
• Saving in consumption of fuel.
• Saving in maintenance cost of machineries.
• Reduction in manpower cost.
• Reduced approximately 300 KL soft water though re-collect usable hot water

d. Total Energy Consumption and Energy Consumption per unit of production areasfollows:

A. POWER AND FUEL CONSUMPTION

PARTICULARS Year ended 31.03.2016 Year ended 31.03.2015
1. Electricity
a. Purchased
Units (Nos.) 81206027 88101059
Total Amount (Rs.) 470002158 470948875
Rate/Unit (Rs.) 5.79 5.35
b. Own Generation
i) Through Diesel/FO
Quantity (Ltrs) 158959 148070
Total Amount (Rs.) 7323263 8000839
Average Rate (Rs.) 46.07 54.03
Generation (Units) (Nos.) 505895 460172
Units per Litre of Diesel oil (Nos.) 3.18 3.11
Cost/Unit (Rs.) 14.48 17.39
ii) Through Steam Turbine
Generator Units N.A. N.A.
Unit/LTR or Fuel N.A. N.A.
Oil/Gas Cost unit N.A. N.A.
2. Coal
Quantity/(Tones) N.A. N.A.
Total Cost N.A. N.A.
Average Rate N.A. N.A.
Total Unit Generated 505895 460172
Total Cost 7323263 8000839
Cost/Unit 14.48 17.39
3. Furnace Oil (Excluding use on Generation of Electricity)
Quantity (Ltrs) 0.00 0.00
Total amount (Rs.) 0.00 0.00
Average Rate (Rs.) 0.00 0.00
4. Others/lnternal generation
Wood
Quantity N.A. N.A.
Total Cost N.A. N.A.
Rate/Unit N.A. N.A.

B. CONSUMPTION PER UNIT OF PRODUCTION

Particulars

Yarn Per Mt

Made-ups Per 1000 Sqm

Architectural Products Per 1000 Sqm

Year Ended 31.03.2016 Year Ended 31.03.2015 Year Ended 31.03.2016 Year Ended 31.03.2015 Year Ended 31.03.2016 Year Ended 31.03.2015
1 ELECTRICITY (KWH) 2964.41 2936.16 38.96 38.49 764.78 761.71
2 COAL N.A. N.A. 0.00 0.00 N.A. N.A.
3 OTHERS N.A. N.A. 0.00 0.00 N.A. N.A.

ll. TECHNOLOGY ABSORPTION:

Efforts made in technology absorption as per Form-B of the Annexure to the Rules.

A. RESEARCH & DEVELOPMENT (R & D)

1. Specific areas in which R&D carried out by the Company : Research & Development is carried out for development of new products and for improvement in the production process and quality of products. The Company has been able to pioneer the launch of new products that have been successful in the market due to its R&D efforts. There is progress on building enabling capabilities in the areas of facilities and infrastructure technology organization staffing & development and the engagement of external knowledge networks to complement internal capabilities. The recruitment of professional staff and leadership is ongoing and programmed staff managing processes have been defined and are being instituted. The R & D Department is well equipped with most modern sophisticated state of the art testing equipments. Company is looking forward to the possibility of re-engineering the products constructions and raw materials for optimum utilization of resources.
2. Benefits derived as a result of the above R&D: • Quality testing of raw material stores & consumables.
• Monitoring/Control of production process.
• Improved quality & higher production of cotton yarn.
• Development of new market segment.
• Water conservation.
• Increase in productivity.
• Cost reduction.
3. Future Plan of Action : Management is committed to strengthen R& D activities further to improve its competitiveness intimestocome.
4. Expenditure on R&D
a. Capital : NIL
b. Recurring : NIL
c. Total : NIL
d. Total R&D Expenditure as a Percentage of total turnover : NIL

B. TECHNOLOGY ABSORPTION ADAPTATION AND INNOVATION

1. Efforts in brief made towards technology absorption adaptation and innovation. : The Company is continuously making efforts for adaptation of latest technology in all its units. The Company has also created specific cells for studying and analyzing the existing processes for further improvement upgrading machines with technologically advanced accessories and spares. The company constantly gets feedback from customers and makes efforts for improving the quality of products by conducting the trails special studies in manufacturing process etc. Company have ventured into fire retardant fabrics suitable for hotel industry technical textiles reinvented commodity products for exports and domestic.
2. Benefits derived as a result of the above efforts e.g. product improvement cost reduction product development import substitution etc. : Higher output and improved quality of product with reduction in the cost of production and other overheads. The company will project its image in the global market as a manufacturer of world class yarn and achieve an excellent share out of it.
3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) following information may be furnished : Nil
a. Technology imported : N.A.
b. Year of import : N.A.
c. Has technology been fully absorbed? : N.A.
d. If not fully absorbed areas where this has not taken place reasons thereof and future plan of action. : N.A.

III. FOREIGN EXCHANGE EARNINGS AND OUTGO

1. Activities relating to export initiatives taken to increase exports; development of new export markets for products and services and exports plan. : Your company is targeting for a leading name in the field of Home Textiles by networking for direct supply to the leading international customers and introducing the new segment ebusiness on domestic and exports. To continue the maximum reach to valued consumers the company used to participates in exhibitions magazine etc. apart from other promotional efforts towards domestic market promoting through various promotional materials and hopeful to have better profitability in coming years. In the Fabric export segment the next fiscal year will be a significant period in terms of consolidation in various markets for fabric by roll exports. US market has been developing well both on the residential fabric and contract business. Middle East has shown significant jump on the volumes. Your company has spread its wings in most of the markets now like US UK South East Asia Australia NZ and Middle East. Business sentiments were very soft in furnishings industry both for exports and domestic markets. Although Oil and War seems the major concern area for the economy there seemsto be absence of clear indications of definite directions in some markets like USA. Economy seems to be doing well but furnishings buyers were very cautious. Next year FY16-17 seemsto be more pessimistic in terms of views of all the buyers.
2. Total Foreign Exchange used and earned : Used Rs. 33.97 Mn. For the financial year ended March 31 2016 (Rs. 43.94 Mn for the financial ended as on March 31 2015) Earned Rs. 1848.64 Mn for the financial year ended March 31 2016 (Rs. 2171.80 Mn for the financial year ended as on March 31 2015).

IV. INFORMATION AS REQUIRED UNDER THE MISCELLANEOUS NON-BANKING COMPANIES (RESERVEBANK) DIRECTION 1972.

1. Total number of depositors whose deposits have not been claimed by the depositors or paid by the company after the date on which the deposit became due for repayment or renewal as the case may be according to the contract with the depositor or the provisions of the Directions whichever may be applicable. : Not Applicable
2 The total amounts due to the depositors and remaining unclaimed or unpaid beyond the due dates of repayment. : Not Applicable