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Ashok Alco-Chem Ltd.

BSE: 524594 Sector: Industrials
BSE 11:17 | 19 Mar 100.20 -1.95






NSE 05:30 | 01 Jan Ashok Alco-Chem Ltd
OPEN 102.15
52-Week high 131.45
52-Week low 75.00
P/E 17.28
Mkt Cap.(Rs cr) 46
Buy Price 100.20
Buy Qty 53.00
Sell Price 102.85
Sell Qty 10.00
OPEN 102.15
CLOSE 102.15
52-Week high 131.45
52-Week low 75.00
P/E 17.28
Mkt Cap.(Rs cr) 46
Buy Price 100.20
Buy Qty 53.00
Sell Price 102.85
Sell Qty 10.00

Ashok Alco-Chem Ltd. (ASHOKALCO) - Director Report

Company director report

The Members

Ashok Alco-Chem Limited

Your Directors present their 25 Annual Report together with the Audited FinancialStatements of your Company for the year ended March 31 2017.


The following figures summaries the financial performance of your Company during theyear under review: (Amount in Rs.)

Standalone Consolidated*
2016-17 2015-16 2016-17
Income from Operations 1478434871 3362446294 1612194784
Other Income 32482016 32774556 33520491
Total Income 1510916887 3395220850 1645715275
Less : Total Expenditure 1456210145 3183324111 1566911346
Profit/(Loss) before Interest 54706742 211896739 78803929
Depreciation and Tax
Less : Interest 12896641 5754787 12938002
Profit/(Loss) before Depreciation and Tax 41810101 206141952 65865927
Less : Depreciation 10236131 8870972 10523241
Profit/(Loss) before Tax 31573970 197270980 55342686
Less : Tax Expenses
Current Tax 9200000 66000000 18000000
Earlier Year's Tax - 5630429 2380
Deferred Tax 1479037 1836874 1518408
Net Profit/(Loss) 20894933 123803677 35821898

* -This being the first year of Consolidation for the Company with respect to theProfit & Loss Items previous year's figures have not been disclosed.


The performance of the Manufacturing Vertical of your Company has slightly increasedvis a vis previous year 2015-16 despite the challenges of the competitive identicalimported products. The Chemical Segment is gradually growing at 15.60% annually.

The plummet in the overseas market for Bauxite and Iron Ore continued in the financialyear 2016-17 which resulted in the less contribution of profits from the TradingDivision. Adverse market conditions globally affected the Trading Division resulting indip in the Profit Before Taxes (Trading Division) compared to 2015-16. However yourCompany is endeavoring few chemical products along with mineral products in trading lineto capitalize the overseas niche market.

The Government has envisaged better economic conditions at domestic and global levelwhich will attribute beacon of hope for sustained growth momentum that could potentiallybring vast improvements in the lives of hundreds of millions of people in our country.

The goals of the entire work force in the organization stood strong and high to sustainand drive the negative forces for fetching positive results.

Your Company has invested Rs. 15182974 in Cooling Tower and Steam Turbine whichreduced power consumption by 15% resulting into increase in profitability of the Company.


The subsidiary of your Company has performed well and contributed to the extent of 43%to the Profit before Tax in the consolidated profit and loss account of parent Company.The trading nature and scope of business in certain range of products along with thededicated team of enthusiastic and energetic personnel's the subsidiary of your Companyhas grown at the rate of 5.97% in terms of Turnover and at 5.22% towards contribution interms of Profit Before Tax during 2016-17 as compared to its contribution during 2015-16.


Considering the performance of your Company the Directors are pleased to recommend forapproval of the Members a dividend of Re. 1/- (i.e. 10%) per equity share of Rs. 10/- eachfor the financial year ended March 31 2017.

The dividend if approved at the 25 Annual General Meeting ("AGM") will bepaid to those shareholders whose names appear on the Register of Members of the Company asof the end of the day on Saturday September 16 2017 being the record date and it wouldinvolve the total cash outflow of Rs. 5536862/- including dividend tax.


The Company proposes to transfer Rs. 5000000/- (Rupees Fifty Lakhs Only) to thegeneral reserves of the Company.


During the financial year 2016-17 there is no change in the Authorized issuedsubscribed and paid-up share capital of the Company. As on March 31 2017 the Company ishaving Authorized share capital of Rs.70000000/- comprising of 5000000 Equity Sharesof Rs 10/- each and 2000000 11% Preference Shares of Rs 10/- each.

The Issued Subscribed and Paid-Up Equity Share Capital of the Company as on March 312017 is Rs. 46003430/- comprising of 4600343 Equity Shares of Rs. 10/- each.

During the year under review the Company has not issued shares with differentialrights as to dividend voting or otherwise or bought back any of its securities. TheCompany has not issued any sweat equity/bonus shares/employee stock option plan under anyscheme.


Aura Alkalies and Chemicals Private Limited continues to be the Holding Company of theCompany by holding 2518632 Equity Shares of the Company i.e. 54.75% at the end of thefinancial year March 31 2017.


The Company continues to be a Holding Company of Ashwa Minerals Private Limited as onMarch 31 2017.

The Company does not have any Associate or Joint Venture companies within the meaningof section 2(6) of the Companies Act 2013 ( " the Act" ).

Pursuant to provisions of section 129(3) of the Act a statement containing salientfeatures of the financial statements of the Company's subsidiary in Form AOC-1 is attachedto the financial statements of the Company.

Further pursuant to the provisions of section 136 of the Act the audited standaloneand consolidated financial statements and other relevant documents and audited accounts ofthe said subsidiary Company are available on the website of the


There has been no change in the shares of the Company under the "Promoter andPromoter Group". The present promoters of

the Company are:

Sr. No. Name No. of shares held % to total paid up capital
1 Aura Alkalies and Chemicals Private Limited 2518632 54.75
2 Mr. Sunil Shah 1000 0.02
3. HK Dealers Private Limited 1000 0.02
Total Promoter's holding 2520632 54.79



During the year under review Mr. Purab Shah was appointed as an Additional Directordesignated as Executive Director & Chief Executive Officer ("Executive Director& CEO") of the Company for a period of two years effective from April 19 2016.The said appointment was duly approved by the Members of Company at their 24 AnnualGeneral Meeting held on September 22 2016.

Subsequent to the year under review Mr. Shekhaar Shetty (Category – Non –Executive / Independent) was appointed as an Additional Director of the Company for aperiod of three years effective from May 17 2017 subject to approval of Members at the25 Annual General Meeting.

The Company has received notice in writing under section 160 of the Act proposingappointment of Mr. Shekhaar Shetty as an Independent Director. The Board recommends hisappointment.


Subsequent to the year under review Dr. Umesh Kulkarni tendered his resignation andhence ceased as an Independent Director w.e.f. May 12 2017.

The Board placed on record its appreciation for the services rendered by Dr. UmeshKulkarni during his tenure with the Company.

Independent Directors

Consequent to aforementioned appointment of Mr. Shekhaar Shetty and resignation of Dr.Umesh Kulkarni the following Non - Executive Directors are Independent Directors in termsof the provisions of section 149(6) of the Act read with the provisions of the SEBIListing Regulations.

a) Mr. Manoj Ganatra; b) Mr. Shekhaar Shetty (appointed w.e.f. May 17 2017) c) Dr.Umesh Kulkarni (Ceased as Director w.e.f. May 12 2017)

The said Independent Directors are not liable to retire by rotation. They havesubmitted a declaration to the effect that they meet the criteria of Independence asprovided in section 149(6) of the Act and there has been no change in the circumstanceswhich may affect their status as Independent Director during the year.

Retirement by Rotation

Mrs. Neeta Shah retires by rotation and being eligible has offered herself forre-appointment.

Non-Executive Directors

During the year there was no change in Non-Executive Directors of the Company. TheNon-Executive Directors were not paid any remuneration other than the sitting fees andreimbursement of expenses incurred by them for the purpose of attending meetings of theCompany.

Key Managerial Personnel

Pursuant to the provisions of section 203 of the Act the following were the KeyManagerial Personnel (KMP) of the Company as on

March 31 2017 :

a) Mr. Purab Shah – Executive Director & CEO (w.e.f. April 19 2016) b) Mr. V.Shashidharan – Chief Financial Officer; c) Ms. Seema Gangawat – CompanySecretary & Compliance Officer

Subsequent to the year under review Mr. V. Shashidharan tendered his resignation andhence ceased as a Chief Financial Officer of the Company w.e.f. May 1 2017.


The Board of Directors of the Company met seven times during the financial year 2016-17viz. on April 19 2016 May 20 2016 August 11 2016 November 10 2016 January 272017 February 14 2017 and March 27 2017.


The familiarisation programme seeks to update the Directors on the rolesresponsibilities rights and duties under the Act and other statutes.

The policy on Company's familiarisation programme for Independent Directors is postedon the Company's website


Pursuant to the provisions of the Act and the Part D of Schedule II of SEBI ListingRegulations the Company has Nomination and Remuneration Policy and the same is availableon the Company's website The more details aboutthe Nomination and Remuneration policy is provided in Corporate Governance Report.


Pursuant to the provisions of the Act and the SEBI Listing Regulations policy onDirectors appointment and remuneration including criteria for determining qualificationspositive attributes independence of Directors etc. has been formulated. The Nominationand Remuneration Policy has been put on the website of the


In terms of the provisions of the Act read with Rules made thereunder and theprovisions of SEBI Listing Regulations the evaluation of the performance of the Board ofDirectors Committees of the Board and individual Directors have been carried out. Theevaluation framework for assessing the performance of Directors inter aliacomprises of the following key areas:

i. Expertise;

ii. Objectivity and Independence

iii. Guidance and support in context of the Company's operations;

iv. Understanding of the Company's business;

v. Understanding and commitment to duties and responsibilities;

vi. Willingness to devote the time needed for effective contribution to Company;

vii. Participation in discussions in effective and constructive manner at the Meetings;

viii. Responsiveness in approach;

ix. Ability to encourage and motivate the Management for continued performance andsuccess.


Pursuant to the requirements of section 134 (5) of the Companies Act 2013 with respectto Directors' Responsibility Statement your Directors confirm that:

a. in the preparation of the annual accounts for the year ended March 31 2017 theapplicable accounting standards had been followed along with proper explanation relatingto material departures; b. the Directors have selected such accounting policies andapplied them consistently and made judgments and estimates that are reasonable and prudentso as to give a true and fair view of the state of affairs of the Company as at March 312017 and the profit of the Company for the year ended on that date;

c. the Directors have 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 have prepared the annual accounts on a going concern basis;

e. the Directors have laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and are operatingeffectively; and

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


Cautionary Statement

Statements made under this section describing the Company's projections estimates andexpectations may be "forward-looking statements" within the meaning ofapplicable securities laws and regulations. Important factors that could make a differenceto the Company operations include among others economic conditions affectingdemand/supply and price conditions in the domestic and overseas markets in which theCompany operates changes in government regulations tax laws and other statutes andincidental factors.

Although the expectations are based on reasonable assumptions the actual results mightdiffer.

In totality the business continued to maintain its stability in both domestic and theglobal market competition against the constraint in the selling prices of the manufacturedproduct on one side and unrestrained prices of input on other side during the financialyear ended March 31 2017 the books reflected the Net Profit of Rs. 20894933 which ismainly due to the downfall in trading business. The utilization of the production capacityof the Chemical Manufacturing Vertical has increased up to 10%.

Economy & Industry Scenario and Outlook

India has registered almost consistent steady pace of economic growth in Fiscal 2017 asit did in Fiscal 2016. A sign of improvement was mainly due to additional focus onparameters namely inflation current account balancing and fiscal deficit. India's exportshas suffered as setback on account of weak growth in advanced and emerging economies.Though the Global situation seems not promising India is estimated to endeavor to remainthe fastest growing major economy in the world. Nevertheless trade and current accountdeficits have improved due to relatively lower prices for crude oil which is imported byIndia. The Chemical Industry seems consistent in line with the Government Policies. Thefuture is not bleak in terms of volumes for Bulk Drug FMCG and Packaging Industry.

Key projects such as 'Make in India' 'Start up India' 'Digital India' and 'SkillIndia' seek to encourage investments and improve the ecosystem at various levels ofbusiness activity which is mainly due to several positive and strategic initiatives takenby the existing Government in order to eliminate the obstacles and ensure smooth businessoperations by relaxing various Policies namely FDI & Tax Rules. Aggressive roll-out ofthe financial inclusion program has made banking services accessible to millions ofpreviously unbanked people.

Segment-wise Performance

The low demand and high competitive pricing for minerals in the overseas market hasdeclined the topline of the Trading Division. Your chemical segment maintained a stablegrowth in terms of production which increased by 10% and topline by 16.13%. The profitsbefore interest and tax declined owing to the low demand of Mineral based products.

Your Company's overall profit after tax for FY 2016-17 was Rs. 20894933 against Rs.123803677 in FY 2015-16.

Opportunities Threats Risks and Concerns

The manufacturing industry and the demand thereof are influenced by general economicconditions including among other things rates of economic growth credit availabilityinfrastructure spending interest rates environmental and tax policies safetyregulations freight rates and fuel and commodity prices. Negative trends in any of thesefactors impacting the regions where the Company operates could materially and adverselyaffect the results of operations and scalability of the Companies business financially.Your Company recognizes that every business have its inherent risks and what is requiredis a proactive approach to identify and mitigate them in time so that they do not impactthe business negatively. We endeavor to regularly scan the internal and externalenvironment to identify risks and decide on possible mitigation measures and costs forovercoming them and incorporate them in Company's strategic business and operationalplans. The Company has developed systems and processes to map the risks across segmentsproducts and geographies and respond effectively to counter them and achieve theorganizational goals. Sustained action is taken to further strengthen the system.

Financial Performance

Financial performance achieved by your Company during the year under review is asdisclosed in this Report under the head 'Financial Results and Performance'.

Internal Control Systems and Adequacy

Your Company has effective and adequate internal control systems which ensure reliableand accurate financial reporting safeguarding of assets keeping constant check on coststructure and adhering to management policies.

The Company is committed to good corporate governance practices and has well definedsystems and processes covering all corporate functions and units. The internal controlsare commensurate with the size scale and complexity of our operations and facilitatetimely detection of any irregularities and early remedial steps against factors such asloss from unauthorized use and disposition. Company policies guidelines and proceduresprovide for adequate checks and balances which are meant to ensure that all transactionsare authorized recorded and reported correctly. The internal controls are continuouslyassessed and improved/modified to meet changes in business conditions statutory andaccounting requirements.

Statutory Auditors of the Company has audited the financial statements included in thisannual report and has issued report on our internal control over financial reporting (asdefined in section 143 of the Act.)

Independent Internal Auditors appointed by the Company performs regular audits andchecks the operating effectiveness of the Internal Control system to provide a credibleassurance to the Audit Committee regarding the adequacy and effectiveness of the internalcontrol system. The Internal Controls are upgraded based on Internal Auditrecommendations. Every quarter significant audit findings the corrective stepsrecommended and their implementation status are presented to the Audit Committee of theBoard of Directors of the Company.

Material Developments in Human Resource / Industrial Relation front including numberof people employed

As on March 31 2017 the Company had a total head count of 117. The Directors wish toplace on record their appreciation for the contributions made by the employees to theCompany during the year under review at all levels.

During the year under review industrial relations in the factory/plant were cordialand pro-active and all employees and the Union supported productivity and processimprovement measures undertaken at all the functions of the Company.

The Company has in place Health Safety and Environment policy for Mahad operations.The same is reviewed by the Board from time to time and appropriate actions are taken asdirected.

Credit Rating

The Company enjoys a good reputation for its sound financial management and the abilityto meets its financial obligation. ICRA Limited a reputed rating agency has assigned BB+(stable) rating for long-term and A4+ rating for short-term.


The disclosure required under section 197 of the Act read with Rule 5 of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 as amended from time totime is annexed as "ANNEXURE - A" and forms part of this report.

Further none of the employees of the Company were in receipt of remuneration in excessof the limits as set out under Rule 5(2) of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules 2014 as amended from time to time.



The term of M/s. R. A. Kuvadia & Co. Chartered Accountants (Firm registration No.105487W) who was appointed as Statutory Auditors of your Company at the 22 Annual GeneralMeeting (AGM) held on September 26 2014 for a period of three years expires at theconclusion of 25 AGM and are liable to be retired by rotation under section 139 of theAct.

Accordingly the Board of Directors of the Company at its Meeting held on August 112017 on the recommendation of the Audit Committee have appointed M/s. R A Maru &Associates Chartered Accountants (Firm registration No. 141914W) as Statutory Auditors ofthe Company for a term of five years from the conclusion of 25 AGM till the conclusion of30 AGM subject to ratification of their appointment by the Members at every AGM.

The Company has received the certificate(s) of eligibility in accordance with section139 section 141 and other applicable provisions of the Act and Rules thereunder from M/sR A Maru & Associates Chartered Accountants.

The Auditors Report does not contain any qualification reservation or adverse remarks.


Pursuant to the provisions of section 148 of the Act read with Rule 14 of the Companies(Audit and Auditors) Rules 2014 M/s. V. J. Talati & Co. Cost Accountants havingFirm Registration No. R100675 were appointed as the Cost Auditors of the Company toconduct the audit of Cost Accounting records maintained by the Company relating to"Chemicals" for the financial year ended March 31 2017.

In view of the unwillingness for re-appointment from M/s V. J. Talati & Co CostAccountants the Board of Directors at its Meeting held on May 18 2017 and on therecommendation of the Audit Committee has appointed M/s. N. Ritesh & Associates CostAccountants (Firm Registration No. R100675) as a Cost Auditors of the Company to conductthe audit of Cost Accounting records maintained by the Company relating to"Chemicals" for the Financial Year 2017-18 at a remuneration of Rs. 50000/-plus applicable taxes and out-of-pocket expenses payable at actual subject toratification of remuneration by the Members at the AGM.

The Company has filed the Cost Audit report for the financial year ended March 31 2016submitted by M/s. V. J. Talati & Co. Cost Accountants on October 4 2016. The CostAudit report for the financial year ended March 31 2017 will be filed in due course.


Pursuant to the provisions of section 204 of the Act and the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 the Company has appointed M/s. JayMehta & Associates Practicing Company Secretaries as Secretarial Auditors of theCompany for the financial year 2017-18.

The Secretarial Audit Report for the financial year 2017-18 contains the followingqualification reservation or adverse remarks:

(i) The composition of the Board of Directors of the Company is not in accordance withthe provisions of Regulation 17(1)(b) of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.

Board's Explanation / Comments on above remarks:

Considering the specialized nature of business the Company is looking for suitableperson to induct on the Board of the Company as an Independent Director and to comply withthe provisions of Regulation 17(1)(b) of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.

(ii) The Audit Committee meeting held on 11 August 2016 was attended by two Directors(One Independent Director and other Non - Executive Director). Hence the quorum for thesaid Meeting was not as per Reg. 18(2)(b) of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015.

Board's Explanation / Comments on above remarks:

The Audit Committee meeting held on 11 August 2016 was attended by two Directors Independent Director and other Non - Executive Director. Hence the quorum requirementof attendance of minimum two Directors was duly met. However the further requirement ofattendance of atleast two Independent Directors could not be met due to non-availabilityof one of the

Independent Directors in view of some unforeseen circumstances.

However during the year under review the Audit Committee Meetings (except as statedabove) were duly convened held and conducted as per the requirements of the provisions ofthe Act and SEBI Listing Regulations.

The Secretarial Audit Report is annexed as "Annexure B" to this Report.


In accordance with the provisions of section 138(1) of the Act the Company hasre-appointed M/s. N. P. Patwa & Co. Chartered Accountants as Internal Auditors of theCompany for the Financial Year 2017 - 18. The Audit Committee reviews the findings made bythe Internal Auditors in their Report on quarterly basis and makes necessaryrecommendations to the management.


In accordance with the provisions of section 177(9) of the Act read with Rule 7 of theCompanies (Meeting of the Board and its Powers) Rules 2014 and Regulation 22 of SEBIListing Regulations the Company has adopted vigil mechanism policy in place to enable theDirectors and employees to have direct access to the Chairman or the Members of the AuditCommittee. The details of the vigil mechanism is explained in the Corporate GovernanceReport and also posted on the website of the Company


Particulars of Loans Guarantees given and Investments made during the year coveredunder the provisions of section 186 of the Act are given in the notes to the FinancialStatements.


During the year under review the Company has not entered into any transaction with anyrelated party. Accordingly the disclosure of transaction in requisite Form AOC-2 is notapplicable.


In compliance with the provisions of section 135 of the Act the Board of Directors ofthe Company has formed a Corporate Social Responsibility (CSR) Committee. During the yearunder review the Committee met once. The details of composition of CSR Committee areprovided under the Corporate Governance Report. The detailed report about CSR activitiesundertaken during the year is annexed as "Annexure - C". Pursuant to therecommendation of the CSR Committee the Board had approved a CSR Policy and the same isavailable on Company's website

In terms of the requirements of section 135 of the Act and rules made thereunder theCompany was required to spend around Rs. 3297058 during the FY 2016-17 however theCompany could spent only Rs 970755 towards CSR activities.

Reason for underspent CSR amount:

The Company had identified certain projects for CSR activities. However due to someadministrative constraints the projected CSR activities could not be completed. TheCompany is planning to complete these CSR activities during the current year.


Your Company recognizes that risk is an integral part of business and is committed tomanaging the risks in a proactive and efficient manner. In line with corporate bestpractices the Company assesses the risks in the internal and external environment whichwill monitor evaluate and execute all mitigation actions in this regards and takes allmeasures necessary to effectively deal with incidences of risk. Adequate risk managementframework capable of addressing the risks is in place.


The extract of the Annual Return as provided under section 92(3) of the Act andprescribed in Form No. MGT- 9 of the Companies (Management and Administration) Rules2014 is annexed as "Annexure - D" to this Report.


The details pertaining to composition of Audit Committee are included in CorporateGovernance Report which form part of this Report. During the year all the recommendationsof the Audit Committee were accepted by the Board.


The Report of Corporate Governance forms part of the Annual Report.

A certificate from M/s. Jay Mehta & Associates Practicing Company Secretariesconfirming compliances with the conditions of Corporate Governance as stipulated under theSEBI Listing Regulations also forms part of the Annual Report.


There have been no material changes and commitments affecting the financial positionof the Company which have occurred between the end of the financial year of the Company towhich the financial statements relate and the date of the report save and except asmentioned above.


Your Company has not accepted any deposits from public in terms of sections 73 and/or74 of the Act read with the Companies (Acceptance of Deposits) Rules 2014 as amendedfrom time to time.


There have been no significant and material orders passed by the Regulators or Courtsor Tribunals affecting the going concern status and the Company's operations in future.



Your Company has zero tolerance towards any action on the part of any employee whichmay fall under the ambit of 'Sexual Harassment' at workplace and is fully committed touphold and maintain the dignity of every woman employee working in the Company.

The Company's Policy provides for protection against sexual harassment of womenemployees at workplace and for prevention and redressal of such complaints.

During the year under review Company has not received any complaint regarding sexualharassment.


In terms of Rule 8 (3) of the Companies (Accounts) Rules 2014 the required detailsare as below:

Conservation of energy:

(i) The steps taken or impact on conservation of energy

Your Company is committed to ensure a clean and green pollution free environment aswell a safe and healthy work place at all locations and department of the Plant. YourCompany has made all efforts to optimize the use of energy and minimize its wastage. Toensure minimum consumption of energy for a given level of production operating parametersof production have been standardized. The Key Initiatives towards conservation of energywere:

Commissioning of Steam Turbine with advance technology and upgradation of cooling towerhas enhanced the energy conservation to a greater extent.

Internal periodic energy audits to improve energy performance and benchmarks.

(ii) The steps taken by the Company for utilising alternate sources of energy

Major energy conservation initiatives taken for steam saving which has helped us toreduce the Coal consumption that has reduced emission of CO in atmosphere which helps inglobal warming. Harmonic Audit is done at the plant to identify the losses in the plantand rectify the same.

(iii) The capital investment on energy conservation equipment – Rs. 15182973(Cooling Tower and Steam Turbine).

Technology absorption:

The Company is constantly trying to provide its customers with products thatincorporate latest available materials and technology are preferred efforts are beingmade wherever possible to make use of best contemporary technology.

(i) Efforts made towards Technology Absorption: We have developed the new technologyfor the engineering modification required in the plant for the consumption of the importedalcohol as a raw material.

(ii) The benefits derived like product improvement cost reduction product developmentor import substitution: With new source of raw material and the plant modification we areable to improve the product quality and reduce the cost of the raw material by betteryield of the raw material.

(iii) in case of imported technology (imported during the last three years reckonedfrom the beginning of the financial year)-(a) the details of technology imported; - NA

(b) the year of import; - NA

(c) whether the technology been fully absorbed; - NA

(d) if not fully absorbed areas where absorption has not taken place and the reasonsthereof; and – NA

(iv) The expenditure incurred on Research and Development - Rs. 2058646.

Foreign exchange earnings and outgo

Total Foreign Exchange earned and used. (Amount in Rs)
2016-2017 2015-2016
i. Foreign Exchange used 29018244 327526304
ii. Foreign Exchange earned 290798816 1848651004


The Board take this opportunity to express and place on record their appreciation forthe continued support cooperation trust and assistance extended by shareholdersemployees customers vendors agents bankers financial institutions suppliersdistributors and other stakeholders of the Company.

For and on behalf of the Board
Sd/- Sd/-
Place: Mumbai Purab Shah Sunil Shah
Date: August 11 2017 Executive Director & CEO Director
(DIN : 07490952) (DIN : 03567415)