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Haldyn Glass Ltd.

BSE: 515147 Sector: Industrials
NSE: N.A. ISIN Code: INE506D01020
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VOLUME 72418
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P/E 20.05
Mkt Cap.(Rs cr) 235
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OPEN 44.50
CLOSE 45.20
VOLUME 72418
52-Week high 50.80
52-Week low 26.20
P/E 20.05
Mkt Cap.(Rs cr) 235
Buy Price 43.70
Buy Qty 201.00
Sell Price 0.00
Sell Qty 0.00

Haldyn Glass Ltd. (HALDYNGLASS) - Director Report

Company director report

Dear Shareholders

Your Directors have pleasure in presenting the Twenty-fifth Annual Report on thebusiness and operations together with the Audited Financial Statements of the Company forthe year ended on March 312016.

1] FINANCIAL RESULTS

[ Rs. In Lakhs]
Particulars

Standalone

Consolidated *
For the year ended March 312016 For the year ended March 312015 For the year ended March 312016
Total Income 14396.70 15910.10 14399.44
Earnings before interest depreciation and tax 1997.20 2983.70 1997.37
Interest and Finance Charges 125.26 35.23 125.82
Depreciation 789.34 546.62 789.34
Profit before Taxation 1082.60 2401.85 1082.21
Provision for Current Tax 230.00 720.00 230.00
Provision for Deferred Tax 245.20 78.20 245.20
Wealth Tax - 1.00 -
MAT Credit (59.00) - (59.00)
Profit after tax 666.40 1602.65 666.01
Surplus brought forward from previous year 6215.82 6139.95 6215.83
Adjustments relating to Fixed Assets [541.58]
Profit available for appropriation Total 6882.22 7201.02 6881.82
Appropriations:
General Reserve 200.00 500.00 200.00
Proposed Dividend on Equity Shares 268.76 403.14 268.76
Tax on Proposed Dividend 54.71 82.06 54.71
Surplus carried forward to next Year 6358.75 6215.82 6358.35
Total 6882.22 7201.02 6881.82

* This being the first year of consolidation previous year’s figures are notapplicable.

2] PERFORMANCE

Your Company has achieved Turnover of Rs. 14065.21 lakhs against Rs. 15554.77 lakhslast year. Earnings before Interest Depreciation and Tax for the year are at Rs. 1997.20lakhs as compared to Rs. 2983.70 lakhs achieved in 201415. The Profit after Tax for theyear is Rs. 666.40 lakhs vis-a-vis Rs. 1602.65 lakhs last year.

EPS for 2015-16 is Rs. 1.24 as against Rs. 2.98 earned last year.

3] DIVIDEND

The Board of Directors of your Company is pleased to recommend a dividend of Rs. 0.50per Equity Share of Rs. 1 each for the approval of the shareholders at the ensuing AnnualGeneral Meeting. The total payout on account of dividend will be Rs. 323.47 lakhsinclusive of tax thereon of Rs. 54.71 lakhs.

4] TRANSFER TO RESERVE

For the year under review an amount of Rs. 200.00 lakhs is proposed to be transferredto General Reserve and an amount of Rs. 6358.75 lakhs is proposed to be retained in theProfit and Loss Account.

5] SHARE CAPITAL / ESOP

The paid up Equity Share Capital as on March 312016 was Rs. 537.52 Lakhs. The Companyhad approved a Resolution at the Fifteenth Annual General Meeting held on August 26 2006for Employee Stock Options Plan [ESOP] to the Directors / employees under the SEBI[Employee Stock Option Scheme and Employee Stock Purchase Scheme] Guidelines 1999 with aview to attract retain motivate and reward the employees. However no Stock Options havebeen offered or issued as on date.

The Company has not issued and allotted any securities during the year ended March312016.

6] FINANCE

Cash and cash equivalent as at March 31 2016 was Rs. 434.80 lakhs against Rs. 2929.81lakhs last year. The entire capital expenditure on relining of one of its furnaces withenhanced capacity - completed during the year was funded through internal means only. TheCompany continues to focus on judicious management of its working capital. Receivablesinventories and other working capital parameters were kept under strict check throughcontinuous monitoring.

7] DEPOSITS

During the year under review the Company has not accepted any deposit from the publicfalling within the ambit of Section 73 of the Companies Act 2013 and The Companies[Acceptance of Deposits] Rules 2014.

8] PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

The particulars of loans guarantees and investment have been disclosed in thefinancial statements.

9] MANAGEMENT DISCUSSION AND ANALYSIS:

Pursuant to the amended Regulation 34 (3) read with Part B of Schedule V of theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015 your Directors wish to report as follows:

A) This section shall include discussion on the following matters within the limits setby the listed entity’s competitive position:

a] Industry Structure & Developments:

The company manufactures empty glass containers used by liquor food and beveragepharma & cosmetic industries. Though liquor forms the biggest customer segment yetconsidering surplus capacity created by some of the existing manufacturers the Companyhas recently diversified in to production of wide mouth / open jars (through press andblow process) and has reviewed efforts to increase export of its products. Ongoing studieshave established that non glass food / drug containers are known to have ill effects onhuman health. National Green Tribunal - keeping environmental issues in to mind wantscurbs imposed on plastic packaging.

b] Opportunities & Threats

Due to easing foreign direct investment policies of India global business community isbullish on India as an investment destination and is exploring the business relationshipwith Indian manufacturers. Make in India initiatives along with easing Governmentpolicies may be seen as a turning point in the collective sentiment of a large number ofbusiness leaders in India. A recent survey has found next three years to be‘promisingRs. from economic growth prospective which would result in significantbusiness transformation. India being a large untapped market along with young populationturning consumers good monsoon expected to double farmer incomes coupled with MGNREGA /7th pay commission money coming in to system would spur consumption demand and would be aforce multiplier for the economy. These developments would provide enhanced opportunitiesto the company. The findings reveal an optimistic side of India Inc which has been reelingunder pressure.

c] Segment-wise or Product-wise Performance

The Company operates only in one business segment of manufacturing / supplying of glassbottles & containers. There are no separate reportable segments as per AccountingStandard -17 issued by the Institute of Chartered Accountants of India.

d) Outlook

The Company has successfully completed up gradation of one of it’s furnaces withenhanced capacity. During the process other ancillary facilities too were up graded withlatest technologies. The entire capital expenditure was funded through Company’sinternal resources. The Company has recently received ISO 22000 certificate for supplyingfood grade bottles. This will help the Company to strengthen quality parameters so as tobecome most preferred supplier to the customers. Considering emerging opportunities yourCompany is cautiously optimistic for coming yeA'

e) Risks and Concerns

To counter the surplus capacity available your Company has commenced efforts toincrease export of its products and thus faces the risk of forex volatility to thatextent. In addition gas prices being linked to US dollar the Company is also subject tothe risk of resultant forex fluctuations. Other than these the Company has limitedexposure to foreign exchange risks as it mainly operates in domestic market. Apart fromnormal business risks the volatility in global economies / BREXIT after effects canimpact on developing and emerging economies -like India.

However the Company is confident to counter such risks by process improvementsjudicious product mix and exploring alternative supply sources. The Company complies withsafety norms and has adequate insurance coverage for all its assets.

f) Internal Control_Systems and their adequacy

The Company’s internal control systems are commensurate with the nature of itsbusiness and the size and complexity of its operations. These are regularly tested andcertified by Statutory Auditors as well as Internal Auditors and cover the PlantCorporate office and key areas of business. Significant audit observations and follow upactions thereon are reported to the Audit Committee. The Audit Committee reviews theadequacy and effectiveness of the Company’s internal control environment and monitorsthe implementation of audit recommendations including those relating to strengthening ofthe Company’s risk management policies and system.

g) Discussion on Financial Performance with respect to operational performance

Closure of one of our furnaces during the year for relining and expansion and resultantlower sales during the year higher depreciation due to capital expenditure and increasedfinance cost due to working capital utilization contributed to lower profits. The lowerdemand has also affected the overall profitability.

In spite of capital expenditure during the year the Company barring a small vehicleloan remains a debt free company.

h) Material Developments in Human Resources / Industrial Relations front includingnumber of employee employed

Our relations with the employees are cordial. Your director would like to place onrecord their appreciation of the commitment and efficient services rendered by allemployees of the Company without whose whole hearted efforts the overall satisfactoryperformance of the Company would not have been possible.

B. DISCLOSURE OF ACCOUNTING TREATMENT:

The Company prepares its financial statements in compliance with the prescribedAccounting Standard and hence no further disclosure is required to be made in terms ofPart B of Schedule V read with regulations 34 (3) and 53 (f)of LODR.

10] DIRECTORS & KEY MANAGERIAL PERSONNEL

a) Directors

In accordance with the provisions of the Section 152 of the Companies Act 2013 and theCompany’s Articles of Association Mr. R.Y. Ajila [DIN: 01549005] retires byrotation and being eligible has offered himself for reappointment.

b) Key Managerial Personnel

The following employees were designated as whole - time key managerial personnel by theBoard of Directors during the year under review:

I. Mr. T.N. Shetty Managing Director

II. Mr. G.P. Chaturvedi Vice President Finance and Chief Financial Officer

III. Mr. A.A.Lambay Company Secretary

11] MEETINGS

During the year under review 5 (five) Board Meetings and 4 (four) Audit CommitteeMeetings were convened and held the details of which are given in the CorporateGovernance Report. The intervening gap between the meetings was within the periodprescribed under the Companies Act 2013 and the LODR.

12] DECLARATION BY INDEPENDENT DIRECTORS

All Independent Directors have submitted the declaration of Independence as requiredunder Section 149(7) of the Companies Act 2013 confirming that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 as well as LODR.

13] BOARD EVALUATION

In compliance with the provisions of the Companies Act 2013 read with the Rules framedthere under and Regulation 17 of the LODR the Board had carried out an annual performanceevaluation of its own performance the directors individually as well as the evaluation ofthe working of the Committees. The Board of Directors expressed their satisfaction withthe evaluation process.

14] CORPORATE GOVERNANCE

As required under Regulation 34(3) read with Schedule VI of the LODR a reporton Corporate Governance along with the Certificate from the Statutory Auditors of theCompany regarding the compliance with the conditions of Corporate Governance forms part ofthe Annual Report.

15] AUDIT COMMITTEE

The Audit Committee is constituted in line with the regulatory requirements mandated bythe Companies Act 2013 and the Listing Regulations. The details of the Committee and itsterms of reference are set out in the Corporate Governance Report forming part of theBoard’s Report.

16] NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee is constituted in line with the regulatoryrequirements mandated by the Companies Act 2013 and the LODR. The details of theCommittee and its terms of reference are set out in the Corporate Governance Reportforming part of the Board’s Report.

17] CORPORATE SOCIAL RESPONSIBILITY (CSR) - INITIATIVES

In terms of the provisions of Section 135 of the Act read with Companies [CorporateSocial Responsibility Policy [Rules] 2014 the Board of Directors of your Company hasconstituted a Corporate Social Responsibility [“CSR”] Committee which is chairedby Mr. T. N. Shetty (DIN:00587108). The other members of the Committee are Mr. F. S.Broacha (DIN: 00198990) Mr. L. Rajgopalan (DIN: 00063935) and Mrs. K. J. Udeshi (DIN:01344073) Independent Directors. Mr. Ganesh Chaturvedi CFO is a permanent invitee to theCommittee. Your Company also has in place a CSR Policy and the same is available on yourCompany’s website viz. http://www.haldynglass.com/direct/csr-policy . pdf. TheCommittee recommends to the Board activities proposed to be undertaken during the year.

The Company acknowledges and recognizes the concept of Corporate Social Responsibility(“CSR”) which leads to triple (bottom line) benefits by way of (i) profits(ii) protection of environment and (iii) fight for social justice / quick development ofthe country. The Company is however facing difficulties in identifying well-organizednongovernmental organizations in remote and rural area which can assess and identify thereal needs of the community and work along with companies as implementation agencies toensure successful implementation of CSR activities. The draft rules for CSR activities hadleft many matters unanswered while CSR Rules released recently have answered manyquestions. The time taken for release of Rules is justified by the clarity which the normshave brought out in comparison to the draft rules. The Company is looking forward tocreating an impact with its CSR contribution that is quantifiable measurable andobjective. The Company has identified several projects relating to Education SocialEmpowerment & Welfare Infrastructure Development Sustainable Livelihood Health Careand Education during the year and initiated various activities in neighbouring villagesand around plant location. The work on several initiatives has been discussed; howeverthe same has not materialized during the previous year due to unanswered matters in theCSR Rules and the Company was not able to spend any amount as CSR expenditure.

Recently pending identification of suitable projects the Company has contributed asum of Rs. 25 lakhs to the Prime Minister’s Relief Fund which is permissible underthe said Rules.

The Annual Report on CSR activities is attached as Annexure II forming part of thisReport.

18] MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICHTHE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT

There have been no material changes and commitments affecting the financial position ofthe Company which have occurred between the end of the financial year of the Company towhich the financial statements relate and the date of this report.

19] DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS/TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND THE COMPANY’S OPERATIONS IN FUTURE

During the year under review no material orders were passed by the Regulators / Courts/ Tribunals impacting the Company’s going concern status and future operations.However it may be noted that Office of the Regional Director North-Western RegionAhmadabad Ministry of Corporate Affairs initiated inspection vide their letter Ref: RD/NWR/206(5)/insp/9/2015-16/4232 dated January 212016. Till date the company has repliedall the letters received from Regional Director Ahmadabad.

20] DETAILS OF SUBSIDIARY / JOINT VENTURES / ASSOCIATE COMPANIES

The Company had no subsidiary as at the end of the financial year ended March 312016.However it may be noted that on June 23 2015 your Company entered into a Joint VentureAgreement [“the JV Agreement”] with Heinz Glas International GmbH[“Heinz”] for manufacture and marketing of clear glass containers for thecosmetics and perfumery industries in India and abroad. Details of the same are producedhereunder

Sr. No. Name and Address of the Company CIN/GLN Holding/ Subsidiary/ Associate % of shares held Applicable Section
1 Haldyn Heinz Fine Glass Private Limited B-1202 Lotus Corporate Park Off Western Express Highway Goregaon [East] Mumbai - 400 063. U26960MH2015PTC261972 Associate 50% 2 (6) of the Companies Act 2013

Pursuant to provisions of section 129(3) of the Act a statement containing salientfeatures of the financial statements of the Company’s associates in Form AOC-1 isattached to the financial statements of the Company as Annexure- IV to this Report

Further pursuant to the provisions of section 136 of the Act the financial statementsof the Company consolidated financial statements along with relevant documents andseparate audited accounts in respect of associate is available on the website of theCompany.

Joint Venture:-

The Company continues its objective of diversification and expansion within it’score competence area of glass manufacturing. It has entered into a joint venture with‘Heinz GlaS' from Germany to manufacture cosmetic glass. This new joint venture isbeing executed through a new company called “Haldyn-Heinz Fine Glass Pvt. Ltd.”where both Haldyn and Heinz have invested equally and have a 50 : 50 equity share holdingstructure.

The joint venture company will manufacture glass flacons for the perfume and cosmeticsindustry with technical support from Heinz. A large portion of the products will cater tothe export market. Commercial production is expected to commence by the fourth quarter ofthe current financial year.

21] REMUNERATION OF THE DIRECTORS/KEY MANAGERIAL PERSONNEL (KMP) / EMPLOYEES:

Your Company has framed a Remuneration Policy which lays down a framework in relationto the Directors Key Managerial Personnel and Senior Management of the Company. ThePolicy also lays down the criteria for selection and appointment of Independent Directors.The details of the policy are explained in the Corporate Governance Report.

The information required under Section 197 read with Rule 5 of theCompanies(Appointment and Remuneration of Managerial Personnel) Rules 2014 is givenbelow:-

Name/ Designation Date of Joining Age Years Experience [in Years] Remuneration [Rs. Lakhs] Ratio of Remuneration of each Director to median Remuneration of employees Percentage increase in Remuneration Particulars of previous Employment
Mr. N.D.Shetty Executive Chairman [Din: 00025868] April 25 1991 76 52 123.87 69.53 -14.80 N.A.
Mr. T.N. Shetty Managing Director [Din: 00587108] August 012009 42 19 122.97 55.62 -1.21 N.A
Mr. G. P. Chaturvedi V.P.-Finance & Chief Financial Officer November 13 2013 58 28 28.16 22.94 4.41 Asst. Vice President - Finance SAH Petroleums Limited
Mr. A. A. Lambay Company Secretary February 2 2008 68 12 8.38 4.86 0.31 Company Secretary S.K.S. Logistics Limited

Notes

1. Remuneration includes Salary House Rent Allowance / Rent free furnishedaccommodation Commission Reimbursement of Medical Expenses Leave Travel Assistance andother perquisites evaluated as per the Income- tax Rules 1962 excluding Company’sContribution to Provident Fund.

2. Appointment is on contractual basis. Other terms and conditions are as per theagreement between the incumbent and the Company.

3. Mr. N. D. Shetty and Mr. T. N. Shetty are related to each other and to Mr. R. Y.Ajila.

22] VIGIL MECHANISIM

In pursuance of the provisions of section 177 [9] & [10] of the Companies Act2013 a Vigil Mechanism for directors and employees to report genuine concerns has beenestablished. The Vigil mechanism policy is available on the website of the Company athttp://www.haldynglass.com/direct/vigil-mech.pdf

23] RISK MANAGEMENT POLICY

The Company has framed Risk Management Policy. The Main objective of this policy is toensure sustainable business growth with stability and to promote proactive approach toidentifying evaluating and resolving risks associated with its business. In order toachieve the key objective the policy establishes structured and disciplined approach torisk management in order to guide decisions on risk related issues.

Under the current challenging and competitive environment the strategy for mitigatinginherent risk in accomplishing the growth plan of the Company is imperative. The commonrisk interalia are regulatory risk competition financial risk technology obsolescencehuman resources risk political risks investments retention of talents expansion offacilities and product price risk.

24] CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134[3] [m] of the Companies Act 2013 readwith Rule 8 of the Companies [Accounts] Rules 2014 is furnished in the Annexure-Iforming part of this Report.

25] DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134 [5] of the Companies Act 2013 the Directors confirm that:

i) In the preparation of the annual accounts the applicable Accounting Standards havebeen followed along with the proper explanations relating to material departures.

ii) Appropriate Accounting Policies have been selected and applied consistently.Judgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at March 31 2016 and of the Profit and LossAccount for the Financial Year 2015-16 have been made.

iii) Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and preventing and detecting fraud and other irregularities.

iv) The Annual Accounts have been prepared on a going concern basis.

v) The policies and procedures adopted by the Company for ensuring the orderly andefficient conduct of its business including adherence to Company’s policies thesafeguarding of its assets prevention & detection of frauds / errors accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation internal Financial Controls are adequate and were operating effectively;

vi) Proper systems are in place to ensure compliance of all laws applicable to theCompany and that such systems are adequate and operating effectively.

26] RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were onan arm’s length basis and were in the ordinary course of business and the provisionsof the Companies Act 2013 Rules made thereunder and the LODR are not attracted.

All Related Party Transactions are placed before the Audit Committee and also the Boardfor approval. Prior omnibus approval of the Audit Committee is obtained for transactionswhich are foreseen and repetitive in nature. The transactions entered into pursuant toomnibus approval so granted are audited and a statement giving details of all relatedparty transactions is placed before the Audit Committee and the Board of Directors fortheir approval on a quarterly basis.

Particulars of contracts / arrangement with related parties entered into under section188[1] were available in AOC 2 as Annexure-V to this report.

The details of transactions with Related Parties are given in the notes to theFinancial Statements in accordance with the Accounting Standards.

The Company has not given any loan to its Associate Company and hence disclosure underPart A of Schedule V read with regulation 34 (3) and 53 (f)of LODR is not required.

The policy on Related Party Transactions as approved by the Board is uploaded on thewebsite of the Company at http://www. haldynglass.com/direct/related-party.pdf.com

None of the Directors has any pecuniary relationships or transactions vis-a-vis theCompany.

27] AUDITORS

a) Statutory Auditors

At the 24th Annual General Meeting held on September 29 2015 the membershad approved the appointment of M/s. Mukund M. Chitale & Co. Chartered Accountants[Firm Registration No. 106655W] to hold office from the conclusion of the 24thAnnual General meeting until the conclusion of the 29th Annual General Meetingof the Company to be held in the year 2020 [subject to ratification of their appointmentby the Members at every Annual General Meeting held after the 24th AnnualGeneral Meeting] on such remuneration plus applicable service tax and reimbursement oftravelling and out of pocket expenses incurred for the purpose of audit as may be mutuallyagreed between the Board of Directors and the Auditors.

In accordance with Section 139 of the Act Members are requested to ratify theappointment of the Auditors for the balance term to hold office from the conclusion of the25th Annual General Meeting till the conclusion of the 29th AnnualGeneral Meeting.

There are no qualifications reservations or adverse remarks or disclaimers made by theStatutory Auditors in their report.

b) Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the Companies[Appointment and Remuneration of Managerial Personnel] Rules 2014 the Company hadappointed M/s. SPANJ & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company. The Secretarial Audit Report is part ofthis report.

The report does not contain any qualifications reservation or adverse remark.

28] AUDITORS' REPORT

The specific notes forming part of the accounts referred to in the Auditors Report areself explanatory and give complete information and without any qualifications or adverseremarks. Hence no comment is required.

29] EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT 9 as requiredunder section 92 of the Companies Act 2013 is annexed as Annexure - III and forms anintegral part of this Report.

30] DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTIONPROHIBITION AND REDRESSAL) ACT 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted a‘Respect for GenderRs. Policy on prevention prohibition and redressal of sexualharassment in line with the provisions of the Sexual Harassment of Women at Work place[Prevention Prohibition and Redressal] Act 2013 and the Rules framed thereunder.

The Company has not received any written complaint on sexual harassment during thefinancial year.

31] REPORTING OF FRAUDS:

There was no instance of fraud during the year under review which required theStatutory Auditors to report to the Audit Committee and /or Board under Section 143(12) ofthe Act and Rules framed thereunder.

32] ACKNOWLEDGEMENTS

Your Directors thank all the shareholders customers vendors banks and the State andCentral Governments for the support extended during the year and look forward to theircontinued support in the future. Your Directors also place on record their appreciation ofthe contribution made by the Company’s employees at all levels.

For and on behalf of the Board

N. D. Shetty

Executive Chairman

[DIN: 00025868]

Place: Mumbai

Dated August 25 2016

ANNEXURE- I TO THE DIRECTORS' REPORT

[Section 134 (3)(m) of The Companies Act 2013 read with Rules 8(3) of the Companies[Accounts] Rules 2014 and forming part of the DirectorS' Report for the year ended March312016.

1. CONSERVATION OF ENERGY:

The company has selected the most energy efficient equipment for new plant

a) High Capacity Centrifugal air compressor installed to have the best specific powerconsumption.

b) High efficiency imported fuel burners installed on glass melting furnace to get bestfuel efficiency.

c ) Energy efficiency Siemens motor installed on all the blowers along with VFD controlto reduce speed.

Form of disclosure of particulars with respect to Conservation of Energy. A. Power andFuel Consumption

Particulars Unit 2015-2016 2014-2015
A.1 Electricity
A.1.a Purchased
Units Lakhs Kwh 143.51 64.05
Total amount Rs. Lakhs 1110.556 496.89
Average Rate / Kwh 7.73 7.76
A.1.b Own generation [CPP 1+2+3]* Lakhs Kwh 45.854 131.91
SCM of N Gas Thousand SCM 1239.3 34.29
Average KWH/SCM of NG units 3.87 3.82
A.2 A.2.a Furnace Oil
Quantity Consumption M.T. 916.950 154.800
Total amount Rs. Lakhs 160.16 43.88
Average Rate / M.T. 17.46 28.35
A.2.b LDO nil
Quantity purchased Kilo Litre Nil
Total amount Nil
Average Rate / Kilo Litre Nil
A.3 A.3 Others - Natural Gas
Quantity purchased Thousand SCM 13577.984 16887.115
Total amount* Rs. Lakhs 1786.68 2334.79
Average Rate / SCM 13.16 13.82

* including electricity duty on captive generation.

The Company manufactures a wide variety of glass bottles and containers of differentsizes and volume.

Hence consumption per unit of production is not measurable.

2. TECHNOLOGY ABSORPTION Form - B

Form of disclosure of particulars with respect to technology absorption.

Research and development [R & D]

During the year under review efforts continued to improve the quality of productsthrough normal research and development.

Technology absorption adaptation and innovation:

1. The furnace batch house made fully automatic with PLC control to have better glasshomogeneity.

2. The bottle forming machine of 3 lines change from mechanical system to Electronictiming to increase speed.

3. Open Access power purchasing started to purchase power at competitive rates fromIEX bilateral trade.

FOREIGN EXCHANGE EARNINGS AND OUTGO

A. Activities relating to exports; initiatives taken to increase exports; developmentof new export markets for products and services and export plans:

The Company has been making focused efforts to increase its export.

B. Foreign Exchange Earning and Outgo

During the year the Company incurred expenses of Rs. 832.15 lakhs and earned Rs. 213.76lakhs in foreign exchange.

For and on behalf of the Board

N. D. Shetty

Executive Chairman [DIN: 00025868]

Place: Mumbai

Dated August 25 2016