The Directors have pleasure in presenting the Annual Report and the Audited FinancialStatements of your Company for the year ended 31st March 2016.
With economic conditions in the leading economies yet to see sustained strength andgrowth the forecasts for growth have been prone to frequent downward revisions makingnearly all economies most notably emerging market economies increasingly susceptiblegiven the market linkages. India has been amongst the few exceptions having recorded oneof the highest growth rate globally in the years 2014-15 and 2015-16. By all indicationsthe Country's economic momentum is likely to prevail in the coming year too albeit at agradual pace.
Although when compared with other economies India's GDP growth at over 7% has beenenviably high compared to the year 2014-15 when the growth was 7.2% the GDP growth in2015-16 was about 7.6% a marginal increase. This is in spite of the fact that there wascontinued decline in exports investments and manufacturing. The potential growth of theCountry can be raised further if it can successfully implement necessary reforms includingunifying the tax regime labour market regulations as well as opening up further toforeign direct investment and trade. These measures have been stuck up in the politicalcob-web. The prediction of above normal monsoon after two consecutive years of failuregives a ray of hope of better economic performance particularly in the agriculturesector which has been lagging behind. The ongoing drought which is affecting over onethird of the population in various parts of the Country is a matter of grave concern. Longterm measures to address this perennial problem need to be taken on priority.
As regards your Company's operations all segments other than sugar continued toperform well. The sugar prices after falling to a six year low during the first quarterstarted picking up during September 2015 on lowering of production estimates for thesugar season 2015-16 and compulsory export of 4 million MT of sugar during the seasonmandated by the Central Government. The market sentiments further improved in thesubsequent months due to expected drop in Brazilian cane production and also in the sugarseason 2016-17 domestically due to severe drought conditions prevailing in Maharashtra andother sugar producing states.
Though the adversity in the sugar operations continued for about 6 months in thefinancial year the Company achieved a turnover of Rs.1226 cr. against Rs.1305 cr. in theprevious year. There was a gross profit of Rs.57.4 cr. as compared to Rs.29.9 cr. in theprevious year and net profit of Rs.33.2 cr. as compared to Rs.4.4 cr. in the previousyear. The reduction in loss in the sugar segment helped in improving the profit position.
Appropriation and Dividend
Looking into the better profit position achieved by your Company but keeping the cashflow requirements in mind the Board of Directors is pleased to recommend a dividend ofRs.3 per equity share of Rs.10 (30%) for the year ended 31.3.2016. The dividend payout forthe year under review inclusive of corporate tax on dividend distribution is Rs.6.28 cr.
After provision for proposed dividend the balance carried forward in the Profit &Loss Account will be Rs.39.02 cr. which includes Rs.12.06 cr. brought forward from theprevious year.
There are no qualifications reservation or adverse remarks or disclaimer in theAuditors Report to the members on the Annual Financial Statements for the year ended31.3.2016. Regarding the 'Emphasis of Matter' in the Auditors Report on the consolidatedfinancial statements with regard to the financial assets and income therefrom of thesubsidiary company's financial statements for the year ended 31.3.2016 as clarified inNote No.47 of the consolidated financial statements the subsidiary company has nointention of undertaking NBFC business and it will take steps to set right the position.
Secretarial Audit Report
M/s. Chandrasekaran Associates Company Secretaries carried out a Secretarial Auditfor the year 2015-16 pursuant to Section 204 of the Companies Act 2013 (the Act). A copyof their Report in Form MR-3 as per Rule 9 of the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 is annexed as Annexure-1. There is noqualification in the Report.
THE STATE OF COMPANY'S AFFAIRS
During the year the Daurala Sugar Works (DSW) produced 1.86 Lac MT of sugar by crushing17.83 Lac MT of cane as against 1.62 Lac MT of sugar by crushing 16.79 Lac MT in theprevious year. The recovery in the year was better at 10.44% as against 9.68% last year.This was achieved by extensive propagation of high sucrose cane variety in our cane area.The supply of power to grid remained satisfactory and sale prospects of Renewable EnergyCertificates improved during the year.
The Sugar business continued to incur heavy losses though improvement in sugar pricesduring second half of the year helped in curtailing losses.
The financial year 2015-16 started on a cautious note due to record high production ofaround 28 Million MT and prices being under constant pressure. Sugar prices continued tolanguish at below Rs.2800 per qtl. (even touching Rs.2300 per qtl. in July'15-a six yearlow) during the first half of the year because of high production as well as pressure fromthe Government/Courts to clear cane dues. The prices improved through the second half to alevel of Rs. 3400 per qtl. in March 2016 due to lower global/domestic productionestimates and Central Government encouraging the export of sugar. As per Industryestimate 1.5-2.0 Million MT of sugar is expected to be exported in the year. Theimprovement in sugar prices enabled the Industry to cut down on losses and cane dues.
International prices of white sugar also improved to around US$ 450 per MT as againstUS$ 380 per MT in March 2015 because of anticipated global deficit of over 5 Million MT.
The State and the Central Governments have been supportive of the Industry during itslean phase and announced certain measures to provide relief to the Industry.
The UP Government maintained the sugar cane price (SAP) at Rs.280 per qtl. forSugar Season 2015-16 and waived taxes/charges to the extent of Rs.11.70 per qtl.Additionally a cane incentive of upto Rs.23.30 per qtl. linked to selling price of sugarmolasses bagasse and press- mud from October 2015 to May 2016 was announced. Howeverconsidering improvement in sugar situation this may accrue partially only.
To encourage export participation under the Minimum Indicative Export Quotainitiative the Central Government announced an incentive of Rs. 4.5 per qtl. of canepayable directly to farmers. The Central Government also encouraged supply of ethanol toOil Marketing Companies (OMC) under Ethanol Blending Programme (EBP) and for this someincentives/better prices were declared.
The Government's decisions/actions as well as lower domestic/International productionestimates have helped the Industry revive during the current year. Hopefully goingforward the Industry should turn-around which will be reflected in the results for thecurrent financial year.
On the operational front the Company continues to lay emphasis on improvingefficiencies and reducing costs. Sustained efforts for improved performance would remain apriority.
The profitability of the Alcohol Business improved significantly relative to theprevious year due to lower cost of the molasses and improved production efficiencies. Theoff-take by OMCs for EBP increased considerably giving a fillip to demand. The Companyalso participated in this Programme and made significant sales of Ethanol to OMCs duringthe year.
The profitability of the Chemicals business declined relative to the previous year asdemand slowed due to adverse economic conditions in China and elsewhere.
In some of our products the Chinese resorted to aggressive marketing strategiesincluding significant price reduction.
The Company was able to partially offset the impact of adverse conditions bysuccessfully reducing cost of production.
Contract Manufacturing of a new product was commenced during the year.
Efforts for process optimization through R&D continued as a priority. Investmentswere made to reduce the environment load.
Continued recession in Europe coupled with the turmoil in the Chinese economy adverselyimpacted the high end Automobile Industry and consequently the demand for high performancetyres was at a low key.
Although Shriram Rayons was affected in terms of total orders it was able to protectits market share due to better reputation for quality and timely delivery among customers.The emphasis continued for widening customer base for value added products.
The Unit continues its emphasis on reducing operating costs by optimizing capacityutilization efficient operating techniques and energy cost reduction. This has helped inmaintaining the operating margin in spite of lower volume and lower export realizationsdue to steep fall in value of Euro.
Nylon Chafer sales continued to be affected by the lower off take from domestic tyreproducers due to the onslaught of imported tyres on the Indian tyre market.
With operationalization of energy related projects the Unit was able to bring downcoal consumption substantially and was able to meet 79% of its fuel requirement fromrenewable sources. This has helped the Unit to control the energy cost as well as protectthe environment.
The Unit further upgraded the effluent treatment plant and installed online monitoringsystem for effluent discharged.
Material changes and commitments
No material changes or commitments have occurred between the end of the financial yearto which the financial statements relate and the date of this Report affecting thefinancial position of the Company.
The Company has a non-material wholly owned subsidiary Daurala Foods & BeveragesPvt. Ltd. (DFBL) which is not carrying on any operations presently. DCM Hyundai Limited(DHL) is an associate company.
The required information with regard to the performance and financial position of thesubsidiary and associate companies are annexed in Form AOC-I as annexure to the AnnualFinancial Statements for the year ended 31.3.2016.
There has been no change in relationship of subsidiary/associate companies during theyear except that the Company acquired the remaining 10 equity shares of Rs.10 each in DFBLresulting in its becoming a wholly owned subsidiary.
BOARD MEETINGS AND DIRECTORS Meetings of the Board
During the year 2015-16 six Board meetings were held. The dates of the meetingsattendance etc. are given in the Corporate Governance Report annexed hereto.
Declaration u/s 149(6) of the Act
All the Independent Directors (IDs) have given declarations u/s 149(6) of the Actconfirming that they meet the criteria of independence as laid down under the saidSection.
Familiarization Programme for Independent Directors
Shri C. Vikas Rao and Smt. Kavitha Dutt Chitturi whose appointments as IndependentDirectors were approved by the shareholders in the last AGM had visited Shriram RayonsUnit Kota on 25.9.2015 as part of familiarization programme. They spent considerable timein visiting the Rayon plant and had discussions with officers at various levels. Shri C.Vikas Rao and Smt.Kavitha Dutt Chitturi followed up the familiarization programme by avisit to the Company's Daurala Complex on 16th and 30th March 2016 respectively. Theyvisited the Sugar Alcohol and Chemical plants and acquainted themselves with theoperations of these plants.
Other Independent Directors have been on the Board of the Company for a long time andare well versed with the Company's business model and the nature of industries in which itis operating.
The Directors are also kept updated with information on the Company the industry anddevelopments in different segments at the Board meetings while reviewing the operationsquarterly/annual financial results and considering the budgets.
A familiarization programme for IDs laid down by the Board has been posted on theCompany's website-www.dcmsr.com
Policy on Board Diversity
The Board of Directors in its meeting held on 30.5.2016 has approved a Policy on BoardDiversity devised by the Nomination & Remuneration Committee [NRC] as required underthe SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. A copy ofthe same has been posted on the Company's website-www.dcmsr.com .
Directors Appointment and Remuneration
Appointment of directors on the Board of the Company is based on the recommendations ofthe NRC. NRC identifies and recommends to the Board persons for appointment on the Boardafter considering the necessary and desirable competencies. NRC takes into accountpositive attributes like integrity maturity judgement leadership position time andwillingness financial acumen management experience and knowledge in one or more fieldsof finance law management sales marketing administration research etc.
In case of Independent Directors (IDs) they should fulfill the criteria of independenceas per the Act and Regulation 25 of the SEBI (LODR) Regulations 2015 in addition to thegeneral criteria stated above. It is ensured that a person to be appointed as director hasnot suffered any disqualification under the Act or any other law to hold such an office.
The directors of the Company are paid remuneration as per the Remuneration Policy ofthe Company the gist of which is given under the heading 'Remuneration Policy' hereinbelow. The details of remuneration paid to the directors during the year 2015-16 are givenin Form MGT-9 annexed hereto and also in the Corporate Governance Report forming part ofthis Report.
Changes in Directors or KMP
There has been no change in the composition of the Board of Directors or Key ManagerialPersonnel during the year 2015-16.
The Board of Directors in its meeting held on 30.5.2016 re-designated Shri Alok B.Shriram Dy. Managing Director as 'Vice Chairman & Dy. Managing Director' and ShriMadhav B. Shriram Whole Time Director as 'Dy. Managing Director' on recommendation ofNRC in exercise of the authority conferred on the Board by the shareholders by respectiveresolutions approving the terms of appointment of these managerial personnel. The Boardalso increased the remuneration including commission payable to Shri Madhav B. Shriramfrom not exceeding 2.25% of the Net Profit as per Section 198 of the Companies Act 2013to not exceeding 3% of the Net Profit as may be decided by the Board from the financialyear 2016-17.
Shri Alok B. Shriram retires by rotation at the ensuing AGM and being eligible offershimself for reappointment as a Director liable to retire by rotation as per Section 152 ofthe Companies Act 2013. Shri Alok B. Shriram is presently Vice Chairman & Dy.Managing Director. A proposal for his re-appointment as a director liable to retire byrotation is being placed before the shareholders for approval at the ensuing AGM.
Annual Evaluation of Board and Directors
As required under the Act and the SEBI (LODR) Regulations 2015 an evaluation of theperformance of the IDs Board as a whole and Committees during the year 2015-16 wascarried out by the Board of Directors based on the criteria laid down by the NRC. A copyof the 'criteria' is annexed as Annexure 2 hereto.
On an overall assessment the performance of the IDs individually and collectivelywere found satisfactory. It was noted that the IDs adhered to the code of independence asper Schedule IV of the Act and to the restrictions with regard to pecuniary relationshipwith the Company. The Board of Directors evaluated the performance of the Board as awhole including the Committees and noted that the performance was constructive and metthe test of objectivity in achieving the goals of the Company.
The IDs in a separate meeting reviewed and evaluated the performance of non-IndependentDirectors the Board as a whole the Board Committees and the performance of the Chairmanof the Company taking into account the views of Executive Directors based on the criterialaid down by IDs last year.
Directors' Responsibility Statement
As required under Section 134(3)(c) of the Act your Directors state that:
a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;
b) the directors had selected such accounting policies and applied them consistentlyand made judgements 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 or 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;
e) the directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were 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.
Internal Financial Controls
A comprehensive internal financial control system is followed by the Company at all itsestablishments. This is further strengthened by an internal audit process under theoverall supervision of the Audit Committee of the Board. The services for the internalaudit are outsourced. Qualified and experienced professionals are engaged to ensureeffective and independent evaluation of inter alia the internal financial controls.
The Audit Committee lays down the schedule for internal audit. Internal audit reportsare placed before the Committee with management comments. Suggestions are implemented andreported to the Audit Committee.
Apart from the above an effective budgeting and monitoring system is also in place.Budgets are reviewed by Audit Committee and approved by the Board. The operating resultsare compared and monitored with the approved budgets periodically. An Executive Committeecomprising of senior management team meets every month reviews all aspects of operationsand chalks out remedial measures and strategies wherever required.
An effective communication/reporting system operates between the Units Divisions andCorporate Office to keep various establishments abreast of regulatory changes and ensurecompliances.
The expert agency engaged by the Company to assess the adequacy of the existinginternal financial controls and suggest measures for further strengthening the same hascome out with a report and made a presentation to the Board of Directors. The expertagency observed in their report as under:
"We are of the view that adequate key control procedures exist in substance inline with the definition of Internal Financial Control as explained in The Act."
Loans Guarantees and Investments
The Company has not given any loan covered u/s 186 of the Act during the year. TheCompany has acquired the remaining 10 equity shares of Rs.10 each in the Company'ssubsidiary DFBL during the year making it a wholly owned subsidiary.
The Company has not given any guarantee during the year 2015-16. The deed of guaranteeexecuted by the Company in favour of IDBI Bank Ltd. with regard to crop loan from the Bankto the farmers who supply cane to the Company's Unit Daurala Sugar Works on recommendationof the Company remained dormant as no crop loan was provided by the Bank to the farmersduring the year under the Scheme.
Related Party Transactions
The transactions entered with a related party during the year under review was on Arm'sLength basis and in the ordinary course of business. All related party transactions wereapproved by the Audit Committee and the Board. The relevant information regarding relatedparty transactions has been set out in Note No.38 of the Standalone Financial Statementsfor the y.e. 31.3.2016. In view of this disclosure in Form AOC-2 is not required.
The Board has framed a Policy on related party transactions and placed the same on theCompany's website https://www.dcmsr.com
Pursuant to Section 135 of the Act read with the Companies (Corporate SocialResponsibility Policy) Rules 2014 a report in the prescribed proforma is annexed-Annexure3. The Company has spent the mandated amount of Rs. 48.89 lacs on CSR activitiesduring the year.
The Board of Directors in its meeting held on 30.01.2006 undertook a comprehensivereview of the risk assessment and minimization procedures/policies followed by the Companyat its various operations. While taking note of the same the Board laid down that a halfyearly status report of the risk assessment and steps taken to minimize the risks beplaced before the Board. Such a report in respect of all the operations of the company isregularly placed before the Board and suggestions if any are implemented.
In view of the diversified business there are no significant element of risk which inthe opinion of the Board may threaten the existence of the Company.
The Board of Directors while reviewing the existing risk assessment procedures laiddown a Risk Management Policy as required under Regulation 17 of SEBI (LODR) Regulations2015.
Details relating to deposits covered under Chapter V of the Act.
| ||(Rs./lacs) |
|i) Accepted during the year : ||248.88 |
|ii) Remained unpaid or unclaimed as at the : end of the year ||} 8.25 |
|iii) Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so number of such cases and the total amount involved : ||} No |
|a) at the beginning of the year ||} |
|b) maximum during the year ||} |
|c) at the end of the year ||} |
|iv) The details of deposits which are not in compliance with the requirement of Chapter V of the Act. ||} Nil |
Significant Material Orders Passed by Regulators or Courts or Tribunals
No significant orders have been passed by any Regulators Courts or Tribunals duringthe year impacting the going concern status and Company's operations in future.
Extract of the Annual Return
Extract of the Annual Return for the year 2015-16 in Form MGT-9 is annexed-Annexure4.
Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo
The required information as per Rule 8 (3) A B & C of Companies (Accounts) Rules2014 is annexed-Annexure 5.
The Board of Directors in its meeting held on 14.8.2014 had laid down a RemunerationPolicy as recommended by the NRC relating to remuneration of the Directors Key ManagerialPersonnel (KMP) Sr. Management Personnel (SMP) and other employees of the Company. TheRemuneration Policy is in accordance with Section 178 of the Act and the Rules madethereunder. The Remuneration Policy is posted on the Company's websitehttps://www.dcmsr.com The salient features of the Policy are given below:
i. Guiding principle
The guiding principle of the Policy is that the remuneration and other terms ofemployment should effectively help in attracting and retaining committed and competentpersonnel.The remuneration packages are designed keeping in view industry practices andcost of living.
Non-executive directors are paid remuneration in the form of sitting fees for attendingBoard/Committee meetings as fixed by the Board from time to time subject to statutoryprovisions. Presently sitting fee is Rs.50000 per Board meeting and Rs.25000 perCommittee meeting.
Remuneration of Executive Directors (Whole-time Directors) including Managing Directoris fixed by the Board of Directors on the recommendation of the NRC subject to theapproval of the shareholders. The NRC while recommending the remuneration takes intoaccount pay and employment conditions in the industry merit and seniority of the personand paying capacity of the Company. The remuneration which comprises of salaryperquisites performance based reward/profit based commission and retirement benefits asper Company Rules is subject to the limits laid down under the Act.
iii. KMP and SMP
Appointment and cessation of service of KMP are subject to the approval of the NRC andBoard of Directors. Remuneration of KMP and SMP are approved by CMD on the recommendationof the concerned Executive Director keeping in view the Remuneration Policy.
iv. Other employees
The remuneration of other employees is fixed from time to time by the Management as perthe guiding principle laid down in the Remuneration Policy and considering industrystandards and cost of living. In addition to salary they are also provided perquisitesand retirement benefits as per Schemes of the Company and statutory requirements whereapplicable.
The information required as per Rule 5 of the Companies (Appointment and Remunerationof Managerial Personnel) Rules 2014 pertaining to remuneration of Directors KMP andcomparisons are annexed-Annexure 6. It is affirmed that the remuneration is as perthe Remuneration Policy of the Company.
Particulars of employees who have drawn remuneration of Rs.60 lacs or more during theyear 2015-16 are annexed-Annexure 7
The Audit Committee presently comprises of three IDs and one executive director. ShriP.R. Khanna is the Chairman and Shri S.B. Mathur Shri S.C. Kumar all IDs and Shri K.N.Rao Director & CEO (Rayons) are Members. There was no instance of the Board notaccepting the recommendation of the Audit Committee.
Pursuant to Section 177 of the Act and Regulation 22 of SEBI (LODR) Regulations 2015the Board of Directors on the recommendation of the Audit Committee adopted a VigilMechanism (Whistle Blower Policy) in its meeting held on 14.8.2014. The Policy has beenwidely circulated among the employees and also put on the website of the Company.
The Policy provides a channel to the employees to report to the management concernsabout unethical behavior actual or suspected fraud or violation of the code of conduct orpolicies. The mechanism provides for adequate safeguards against victimization ofemployees who avail of the mechanism and also provides for direct access to the Chairmanof the Audit Committee in exceptional cases.
During the year the Company has not issued any share capital with differential votingrights sweat equity or ESOP nor provided any money to the employees or trusts forpurchase of its own shares.
Unclaimed Shares Suspense Account
The position with regard to the unclaimed equity shares transferred to the DematSuspense Account as required under SEBI (LODR) Regulations is as under:
| ||No. of Folios ||No. of Shares |
|Outstanding shares in the suspense account as on 1st April 2015 ||6090 ||84144 |
|No. of shareholders approached for transfer of shares from the Account and no. of shares released during the year 2015-16 ||21 ||265 |
|Balance as on 31.3.2016 ||6069 ||83879 |
The voting rights on the above shares remain frozen till the shares are released to therightful owners.
|Particulars ||As at 31.3.2016 ||As at 31.3.2015 ||Variation |
|- Market capitalization (Rs./cr.) ||211.74 ||128.58 ||64.68% |
|- Price Earning Ratio ||6.04 ||29.32 ||-79.30% |
The Company has not made any public offer of shares.
The statutory auditors of the Company are M/s A. F. Ferguson & Co. (RegistrationNo.112066W) Chartered Accountants 9 Scindia House K.G. Marg New Delhi-110001. Therewas no change in the statutory auditors during the year. They being eligible are beingrecommended to the shareholders for re-appointment for holding office as statutoryauditors from the close of the ensuing AGM till the conclusion of the next AGM. Asrequired under the provisions of Section 139 of the Companies Act 2013 the Company hasobtained written confirmation from M/s. A.F. Ferguson & Co. that their appointment ifmade would be in conformity with the limits specified in the said Section.
M/s Ramnath Iyer & Co. Cost Accountants 808 Pearls Business Park Netaji SubhashPlace Pitampura Delhi-110034 who were appointed as Cost Auditors of the Company for theyear 2014-15 submitted the Cost Audit report due for filing on or before 27.9.2015 tothe Central Government on 16.9.2015. They have been reappointed as Cost Auditors for theyear 2016-17. A resolution for ratification of their remuneration for the year 2016-17 asrequired under the Companies Act 2013 forms part of the Notice convening the AGM.
Reports on Corporate Governance and Management Discussion & Analysis are annexed-Annexure8.
Anti-Sexual Harassment Policy
Pursuant to the "Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013" the Company constituted Internal Complaints Committees atall its workplaces. There has not been any instance of complaint reported in this regardto any of the Committees.
The Directors acknowledge the continued co-operation and support received from thebanks and various government agencies and all our business associates.
The Directors also place on record their appreciation of the contribution made byemployees at all levels.
| ||For and on behalf of the Board |
|New Delhi || |
|May 30 2016 ||CHAIRMAN |
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNING AND OUTGO
Information as required under Section 134 (3)(m) of the Companies Act 2013 read withRule 8 (3) of the Companies (Accounts) Rules 2014
A. CONSERVATION OF ENERGY
i) Steps taken and impact on conservation of energy :
- Phased replacement of traditional tubelights and streetlights by "LEDlights" to reduce power consumption.
- Installation of VFD for speed control at two new bottling lines.
- Reduction in steam consumption in distillation by increasing alcohol % in wash.
- Replacement of old pumps with energy efficient pumps.
- Fluorescent Lamps replaced with LED lamps.
- Installation of Capacitor Banks to improve Power Factor.
- Steam consumption reduced by stopping condensing TG set and using only cogenerationTG set.
- Additional steam flow meter commissioned for continuous monitoring & control ofsteam flow at Spinbath.
- Installation of Control valve to conserve water.
- Reduction of total water extraction by recycling reclaiming & reusing.
- Reduction in steam by desuperheating.
- Reduction of energy consumption by process optimisation.
- Installation of glass reinforced thermal pipes to prevent heat loss i.e. lesserenergy loss and corrosion resulting in better life.
- Recycling of steam condensate water i.e. the hot water used for process heating isgenerated through this condensate thereby saving live steam. Also the same water is usedfor makeup in cooling water saving water extraction & pumping cost.
ii) Steps taken by the Company for utilising alternate sources of energy :
- Company's Daurala Complex utilises only clean conventional energy using agro fuelsfor co-generation of steam & power and supplies the surplus green power generated tothe grid.
- Utilisation of agro waste as boiler fuel increased with operationalisation ofadditional agro waste boiler.
iii) Capital investment on energy conservation equipments : Rs. 0.02 Cr.
B. TECHNOLOGY ABSORPTION :.
i) Efforts made towards technology absorption :
- Installation of PHE's for cooling of fermenting wash to reduce water consumption.
- Installation of cooling tower for water recycling.
- Installation of Online effluent water monitoring system Auto changeover system forcooling water pump Vacuum circuit breaker Magnetic strainer Single stage ION exchangerchanged to double stage.
- Installation of Magnetic flow meter Electronic measurement & control systemChlorine sensor Audio visual alarms and Gas alarms.
- Replacement of lead with the engineering plastic (FRVE) for corrosive liquid service.
- Weighing bridge converted from pit to pit-less.
ii) Benefits derived like product improvement cost reduction product development orimport substitution :
- Improved fermentation efficiency improvement in quality of products optimization ofsteam & power consumption reduction in carbon foot print lower costs and downtimereduction in consumption in water & coal reduction in liquid effluent a cleaner andsafer environment lower waste generation at source safe working increased boilerthroughput and power factor improvement.
iii) Particulars of technologies imported during last three years-Nil
iv) Expenditure incurred on Research & Development : Rs. 1.65 crs.
C. FOREIGN EXCHANGE EARNINGS & OUTGO 2015-2016 :
- Total foreign exchange earned Rs. 350.44 crs. and used Rs. 141.26 crs.