You are here » Home » Companies » Company Overview » JHS Svendgaard Laboratories Ltd

JHS Svendgaard Laboratories Ltd.

BSE: 532771 Sector: Consumer
NSE: JHS ISIN Code: INE544H01014
BSE LIVE 15:40 | 22 Aug 66.10 0
(0.00%)
OPEN

66.00

HIGH

67.70

LOW

65.00

NSE 15:31 | 22 Aug 66.80 0.75
(1.14%)
OPEN

66.55

HIGH

67.80

LOW

65.35

OPEN 66.00
PREVIOUS CLOSE 66.10
VOLUME 14002
52-Week high 76.95
52-Week low 30.70
P/E 13.35
Mkt Cap.(Rs cr) 292
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 66.00
CLOSE 66.10
VOLUME 14002
52-Week high 76.95
52-Week low 30.70
P/E 13.35
Mkt Cap.(Rs cr) 292
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JHS Svendgaard Laboratories Ltd. (JHS) - Director Report

Company director report

To

THE MEMBERS

Your Directors have pleasure in presenting the 12th Annual Report on the business andoperation of your Company along with the standalone and consolidated financial statementsfor the year ended 31st March 2016.

Financial Review

(Rs. in lakhs)

Particulars

Standalone

Consolidated

31.03.2016 31.03.2015 31.03.2016 31.03.2015
Net sales/Income from Operation 10008.54 5532.39 10008.54 5532.39
Other Income 73.01 85.89 73.01 87.14
Interest & Finance Charges 3648 14.08 36.48 14.08
Depreciation 1048.50 1234.63 1048.92 1235.56
Profit /(Loss) before Tax -815.33 -2209.50 -816.65 -2213.27
Provision for Tax 0.16 4.42 0.16 4.42
Profit /(Loss) after Tax -81549 -2213.92 -816.81 -2217.69
Profit /(Loss) to be carried to the Balance Sheet -81549 -2213.92 -816.81 -2217.69
Paid up Equity Share Capital (Face Value of rs. 10/- each) 3763.50 2409.53 3763.50 2409.53
Reserve excluding revaluation reserve - 7774.02 - 9550.38
Basic EPS (in Rupees not annualized) Excluding extra ordinary items -3.17 -9.19 -3.18 -9.20
Diluted EPS (in Rupees not annualized) Excluding extra ordinary items -3.17 -9.19 -3.18 -9.20

Review of Operations

The Turnover from the operation of the company during the financial year ended 31stMarch 2016 amounted to Rs.1000 Million as compared to Rs.553 Million during the previousyear ended 31.03.2015. The Turnover of the company has increased by 80.91% from theprevious year mainly on accounts of the Tooth paste Business of the contract manufacturingas well as company's own brand.

Dividend

The Directors hereby inform that in the financial year 201516 the Board of Directorshas not recommended any dividend due to the acute financial distress faced by the Company.

Abridged Financial Statements

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 (hereinafter referred to as 'Listing Regulations') and Section 136 of the CompaniesAct 2013 read with Rule 10 of the Companies (Accounts) Rules 2014 the abridged AnnualReport containing salient features of the financial statements including ConsolidatedFinancial Statements for the financial year 2015-16 along with statement containingsalient features of the Directors' Report (including Management Discussion & Analysisand Corporate Governance Report) is being sent to all shareholders who have not registeredtheir email address(es) for the purpose of receiving documents/communication from theCompany in electronic mode. Please note that you will be entitled to be furnished free ofcost the full Annual Report 2015-16 upon receipt of written request from you as amember of the Company. Full version of the Annual Report 2015-16 containing completeBalance Sheet Statement of Profit & Loss other statements and notes theretoincluding Consolidated Financial Statements prepared as per the requirements of ScheduleIII to the Companies Act 2013 Directors' Report (including Management Discussion andAnalysis and Corporate Governance Report is being sent via email to all shareholders whohave provided their email address(es). Full version of Annual Report 2015-16 is alsoavailable for inspection at the corporate office of the Company during working hours up tothe date of ensuing Annual general meeting (AGM). It is also available at the Company swebsite at www.svendgaard.com .

Consolidated Financial Statements

In compliance with the applicable provisions of Companies Act 2013 including theAccounting Standard 21 on Consolidated Financial Statements this Annual Report alsoincludes Consolidated Financial Statements for the financial year 2015- 16.

Operations and Business Performance

Kindly refer to Management Discussion & Analysis and Corporate Governance Reportwhich forms part of this report.

Corporate Governance

Corporate Governance is all about ethical conduct openness integrity andaccountability of an enterprise. Good Corporate Governance involves a commitment of theCompany to run the business in a legal ethical and transparent manner and runs from thetop and permeates throughout the organization. It involves a set of relationships betweena company's management its Board shareholders and Stakeholders. It is a key element inimproving the economic efficiency of the enterprise. Credibility offered by CorporateGovernance helps in improving the confidence of the investors-both domestic and foreignand establishing productive and lasting business relationship with all stakeholders.

A certificate from M/s Mohit & Associates Practising Company Secretary regardingcompliance of the conditions of Corporate Governance as stipulated under Schedule V ofthe Listing Regulations is attached as 'Annexure 1' and forms part of this report.Certificate of the CEO/CFO inter- alia confirming the correctness of the financialstatements compliance with Company s Code of Conduct adequacy of the internal controlmeasures and reporting of matters to the auditors and the Audit committee in terms ofRegulation 17 of the Listing Regulations is attached in the Corporate Governance reportand forms part of this report.

Directors and Key Managerial Personnel

Mr. Amarjit Singh and Mr. P.K Misra Independent Directors stepped down from the Boardof the Company on 11th February 2016. Mr. Amarjit Singh was appointed as an independentdirector at the Annual General Meeting of the Company held on December 29 2014 and Mr. PK Misra was appointed as an Independent Director with effect from March 25 2015 in thegeneral meeting held through postal ballot. The Board places on record its appreciation ofthe invaluable contribution and guidance provided by both of them.

Mrs. Kalyani Polavaram Women Director of the Company also resigned from the Company inthe Board meeting of the company held on 11th February 2016. She was appointed as a WomanDirector of the company at the Annual General Meeting of the company held on 29thDecember 2014.

Mrs. Manisha Lath Gupta was appointed as an Additional Director with effect fromFebruary 11 2016. Her appointment is to be confirmed by the members in the ensuing AnnualGeneral Meeting. The terms and conditions of her appointment as an independent directorare as per Schedule IV of the Act. She has submitted a declaration that she meets thecriteria of independence as provided in Section 149(6) of the Act and there has been nochange in the circumstances which may affect her status as independent director during theyear.

The Board of Directors of the Company has appointed Mr. Nikhil Vora as a NomineeDirector of the Company in the board meeting held on February 11 2016. However hisappointment is subject to the approval of the members of the Company in the ensuing AnnualGeneral Meeting.

Pursuant to Section 152 and other applicable provisions if any of the Companies Act2013 one-third of such of the Directors as are liable to retire by rotation shall retireevery year and if eligible offer themselves for re appointment at every AGM.Consequently Mr. Vanamali Polavaram NonExecutive Director will retire by rotation at theensuing AGM and being eligible offers himself for re-appointment in accordance with theprovisions of the Companies Act 2013.

During the year the non-executive directors of the Company had no pecuniaryrelationship or transactions with the Company.

The key Managerial personnel (KMP) in the Company as per section 2(51) and 203 of theCompanies Act 2013 are as follows:

Mr. Nikhil Nanda-Managing Director Mr. Vishal Sarad Shah-Whole Time Director Mr. NeerajKumar-Chief Financial Officer Mr. Paramvir Singh-Chief Executive Officer Mr. Dhiraj KumarJha-Company Secretary & Compliance Officer.

During the year accept reappointment of Mr. Nikhil Nanda as managing director therewas no change (appointment or cessation) in the office of KMP.

Policy on Directors' appointment and Policy on remuneration

Pursuant to Section 134(3)(e) and Section 178(3) of the Companies Act 2013 the policyon appointment of Board members including criteria for determining qualificationspositive attributes independence of a Director and the policy on remuneration ofDirectors KMP and other employees is attached as Annexure 2 & 3 respectivelywhich forms part of this report.

Particulars of remuneration of Directors/KMP/Employees

Disclosures pertaining to remuneration and other details as required under Section197(12) of the Companies Act 2013 and Rule 5(1) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 is attached as 'Annexure 4' whichforms part of this report. The information showing names and other particulars ofemployees as per Rule 5(2) and 5(3) of the aforesaid Rules forms part of this report.However as per first proviso to Section 136(1) of the Act the Annual Report excludingthe aforesaid information is being sent to the members of the Company and others entitledthereto. The said information is available for inspection by members at the corporateoffice of the Company during business hours on all working days upto the date of ensuingannual general meeting. Any member interested in obtaining a copy thereof may also writeto the Company Secretary at the corporate office of the Company.

Committees of the Board

Currently the Board has six committees: the Audit Committee the Nomination &Remuneration Committee the Stakeholders Relationship Committee the Risk ManagementCommittee the Compensation Committee and the Allotment Committee. A detailed note on thecomposition of the Board and its committees is provided in the Corporate Governance Reportsection of this report.

Audit Committee

The Company has duly constituted an Audit Committee whose detailed composition andpowers are provided in the Corporate Governance Report. There were no recommendations ofthe Audit Committee which have not been accepted by the Board during the financial year.

Number of Board & Committee Meetings

During the year under review Nine Board meetings Six Audit Committee meetings FourStakeholders Relationship Committee meetings Three Nomination & RemunerationCommittee meetings and Two Allotment Committee meetings were convened and held. Detailsand attendance of such Board & Committees meetings are mentioned in CorporateGovernance Report.

Pursuant to clause VII (1) of Schedule IV of the Companies Act 2013 the IndependentDirectors had a separate meeting on 10.11.2015.

Declaration of Independence by Directors

Declaration given by Independent Directors meeting the criteria of Independence asprovided in sub-section (6) of Section 149 of the Companies Act 2013 is received andtaken on record.

Performance Evaluation of the Board its Committees and Individual Directors

Pursuant to applicable provisions of the Companies Act 2013 and the ListingRegulations the Board in consultation with its Nomination & Remuneration Committeehas formulated a framework containing inter-alia the criteria for performance evaluationof the entire Board of the Company its Committees and individual Directors includingIndependent Directors.

A structured questionnaire covering various aspects of the functioning of the boardand its Committee such as adequacy of the constitution and composition of the Board andits Committees matters addressed in the Board and Committee meetings processes followedat the meeting Board s focus regulatory compliances and Corporate Governance etc. isin place. Similarly for evaluation of individual Director's performance thequestionnaire covering various aspects like his/her profile contribution in Board andCommittee meetings execution and performance of specific duties obligations regulatorycompliances and governance etc. is also in place.

Board members had submitted their response for evaluating the entire Board respectivecommittees of which they are members and of their peer Board members including Chairmanof the Board.

The Independent Directors had met separately on November 10 2015 without the presenceof Non-Independent Directors and the members of management and discussed inter-alia theperformance of Non-Independent Directors and Board as a whole and the performance of theChairman of the Company after taking into consideration the views of Executive and Non-Executive Directors.

The Nomination and Remuneration Committee has also carried out evaluation of everyDirector s performance.

The performance evaluation of all the Independent Directors have been done by theentire Board excluding the Director being evaluated. On the basis of performanceevaluation done by the Board it shall be determined whether to extend or continue theirterm of appointment whenever the respective term expires.

The Directors expressed their satisfaction with the evaluation process.

Directors Responsibility Statement

Pursuant to the provision under Section 134(5) of the Companies Act 2013 with respectto the Directors' Responsibility Statement the directors confirm:

i. That in the preparation of the annual accounts the applicable accounting standardshave been followed and there are no material departures;

ii. That they had selected such accounting policies and applied them consistently andmade judgments and estimates that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company at the end of the financial year and of theprofit of the Company for that period;

iii. That they had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

iv. That they had prepared the annual accounts on a going concern basis;

v. That they had laid down internal financial controls to be followed by the Companyand such internal financial controls are adequate and were operating effectively;

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

Statutory Auditors & their Report

M/s S. N. Dhawan & Co. Chartered Accountants Statutory Auditors of the Companywill retire at the conclusion of the ensuing Annual General Meeting and being eligiblehave consented and offered themselves for re-appointment as Statutory Auditors for thefinancial year 2016-17. The Company has received confirmation from M/s S. N. Dhawan &Co. Chartered Accountants to the effect that their reappointment if made would bewithin the prescribed limits under Section 141(3) (g) of the Companies Act 2013 andrelevant rules prescribed thereunder and that they are not disqualified forre-appointment.

The Auditors have vide their letter dated April 20 2016 also confirmed that they havesubjected themselves to the peer review process of Institute of Chartered Accountants ofIndia (ICAI) and holds a valid certificate issued by the Peer Review Board of the ICAI.

There are no observations (including any qualification reservation adverse remark ordisclaimer) of the Auditors in their Audit Report that may call for any explanation fromthe Directors. Further the notes to accounts referred to in the Auditor s Report areself-explanatory.

Secretarial Auditors & their Report

The Board had appointed M/s Mohit & Associates Practising Company Secretaries asSecretarial Auditor to conduct the secretarial audit of the company for the financial year2015-16 pursuant to the provisions of Section 204 of the Companies Act 2013. TheSecretarial Audit Report submitted by them in the prescribed form MR- 3 is attached as Annexure5 and forms part of this report.

There are no qualifications or observations or other remarks of the SecretarialAuditors in the Report issued by them for the financial year 2015-16 which call for anyexplanation from the Board of Directors.

Details in respect of frauds reported by auditors other than those which are reportableto the central government.

The Statutory Auditors or Secretarial Auditors of the Company have not reported anyfrauds to the Audit Committee or to the Board of Directors under Section 143(12) of theCompanies Act 2013 including rules made thereunder.

Internal financial control systems and their adequacy

According to Section 134(5)(e) of the Companies Act 2013 the term Internal FinancialControl (IFC) means the policies and procedures adopted by the company for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information.

The Company has a well placed proper and adequate IFC system which ensures that allassets are safeguarded and protected and that the transactions are authorised recordedand reported correctly. The Company's IFC system also comprises due compliances withCompany's policies and Standard Operating Procedures (SOP s) and audit and compliancesupplemented by internal audit checks from M/s VSD & Associates CharteredAccountants the Internal Auditors. The Internal Auditors independently evaluate theadequacy of internal controls and concurrently audit the majority of the transactions invalue terms. Independence of the audit and compliance is ensured by direct reporting ofInternal Audit Division and Internal Auditors to the Audit Committee of the Board.Additionally during the year 'M/s MAZARS Advisory Private Limited' have also been engagedfor providing assistance in improvising IFC framework (including preparation of Risk &Control Matrices for various processes) and deployment of Self Assessment Tool.

The Companies Act 2013 re-emphasizes the need for an effective Internal FinancialControl system in the Company. The Board has adopted policies and procedures for ensuringthe orderly and efficient conduct of its business including adherence to the Company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial disclosures. The details in respect of internalfinancial control and their adequacy are included in the Management Discussion &Analysis which forms part of this report.

Nature of business

There has been no change in the nature of business of the Company.

Risk Management Committee & Policy

Pursuant to the Regulation of SEBI (Listing Obligations & Disclosure Requirements)Regulations 2015 the Board of the Company has formed a risk management committee toframe implement and monitor the risk management plan for the Company. The committee isresponsible for reviewing the risk management plan and ensuring its effectiveness.

The current economic environment in combination with significant growth ambitions ofthe company carries with it an evolving set of risks. The company recognizes that theserisks need to be managed to protect its customers employees shareholders and otherstakeholders to achieve its business objectives and enable sustainable growth. YourCompany has developed a risk management policy and identified risks and taken appropriatesteps for their mitigation. By identifying and proactively addressing risks andopportunities stakeholder value is protected at all times. The Company has robust systemsfor Risk Assessment and mitigation which is reviewed periodically. The Company's riskidentification and assessment process is dynamic and hence it has been able to identifymonitor and mitigate the most relevant strategic and operational risks both duringperiods of accelerated growth and recessionary pressures.

The Company has laid down a comprehensive Risk Assessment and Minimization Procedurewhich is reviewed by the Board from time to time.

Subsidiary Company

The Company has 2 subsidiaries i.e. M/s JHS Svendgaard Dental Care Limited and M/s JHSSvendgaard Mechanical and Warehouse Private Limited as on March 31 2016. During the yearunder review the Company has also disposed off its foreign subsidiary M/s Jones H Smithcompany by sale of shares held in the Company at a consolidated price of Rs.1100000/- asper the agreement dated February 8 2016.

There are no associate companies within the meaning of Section 2(6) of the CompaniesAct 2013 ("Act"). There has been no material change in the nature of thebusiness of the subsidiaries.

Pursuant to Section 129 (3) of the Companies Act 2013 and Accounting Standard- 21issued by the Institute of Chartered Accountants of India Consolidated FinancialStatements presented by the Company include the financial statements of its subsidiaries.

Further a separate statement containing salient features of the financial statementsof the subsidiaries in the prescribed form Form AOC-1 has been disclosed in theconsolidated financial statements.

Pursuant to the provisions of section 136 of the Act the financial statements of theCompany consolidated financial statements along with relevant documents and separateaudited accounts in respect of subsidiaries are available on the website of the Companywww.svendgaard.com .

Disclosure on Audit Committee

The details pertaining to composition of audit committee are included in the CorporateGovernance Report which forms part of this report.

Extract of annual return

As provided under Section 92(3) of the Act the extract of annual return is given in Annexure-6in the prescribed Form MGT-9 which forms part of this report.

Particulars of loans guarantees and investments

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

Contracts/Arrangements with Related Parties

With reference to Section 134(3)(h) of the Companies Act 2013 all contracts andarrangements with related parties under Section 188(1) of the Act entered by the Companyduring the financial year were in the ordinary course of business and on an arm's lengthbasis. The Company presents a Statement of all related party transactions before the AuditCommittee on a quarterly basis specifying the nature value and terms and conditions oftransaction. Transactions with related parties are conducted in a transparent manner withthe interest of the Company as utmost priority. Details of such transactions are given inthe accompanying Financial Statements. The Company's policy on Related Party Transactionsis available at our website www.svendgaard.com . Details of Related Party Transactions aregiven in Annexure-7 i.e. in Form AOC-2.

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

The information pertaining to conservation of energy technology absorption Foreignexchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act2013 read with Rule 8(3) of the Companies (Accounts) Rules 2014 is furnished in Annexure'8' and is attached to this report.

Corporate Social Responsibility

The Provision of CSR as required by the Companies Act 2013 is not applicable to thecompany as the company does not meet the basic criteria of the applicability of therelevant provision. However the Company is committed to operate and grow in a sociallyresponsible way. With Safety health and environment protection high on its corporateagenda JHS is committed to conduct business with a strong environment conscience so asto ensure sustainable development safe work places and enrichment of life of employeesclients and the community.

Material Changes and Commitments

Change in Capital Structure and Listing of Shares

During the year under review the company has allotted 3.49.74.748 Fully ConvertibleWarrants to the persons belonging to the promoter and non-promoter category on aPreferential basis at an issue price of Rs.11/- per warrant in accordance with theprovisions of the SEBI (ICDR) Regulations 2009 read with relevant provisions of CompaniesAct 2013.

Equity shares allotted pursuant to conversion of Fully Convertible Warrants are asfollows:

1. 3280000 equity shares allotted on 05.01.2016

2. 10259748 equity shares allotted on 03.03.2016

As on 31.03.2016 total paid up share capital of the company is 273752520 pursuantto allotment and listing of 3280000 FCWs. Although the company has converted further1.02.59.748 FCW's on 03rd March 2016 which increased the paid up share capital to376350000 but the listing approval of the same could be received in the month of April2016 from the stock exchanges. Hence those shares are not taken into consideration forcalculating total listed paid up share capital as on 31.03.2016.

Disclosure on Deposit under chapter V

The Company has not accepted any deposits during the year under report nor did anydeposits remain unpaid or unclaimed at the end of the year.

Vigil Mechanism

As per Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 the Company has formulated and published a Whistle Blower Policy toprovide Vigil Mechanism which is overseen by the Audit Committee for the genuine concernsexpressed by the employees and the Directors. The provisions of this policy are in linewith the provisions of the Section 177(9) of the Act. The said Policy provides adequatesafeguards against victimization of employees and Directors who express their concerns.The Company has also provided direct access to the chairman of the Audit Committee onreporting issues concerning the interests of employees and the Company. The policy asapproved by the Board is uploaded on the Company's website athttp://svendgaard.com/download/invester/Vigil_ Mechansim/VIGIL%20MECHANISM%20POLICY.pdf

Disclosure on Sexual Harassment of women at work place (Prevention Prohibition &Redressal) Act 2013

The Company has zero tolerance for sexual harassment at workplace. A policy has beenadopted in line with the Sexual harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013 and the rules framed there under. During the year no complaintspertaining to sexual harassment were received.

Significant and material orders passed by the Regulators or Courts or Tribunalsimpacting the going concerns status and company's operations in future.

The Company has not received any significant or material orders passed by anyregulatory Authority Court or Tribunal which shall impact the going concern status andCompany s operations in future.

Industrial Relations

The Company maintained healthy cordial and harmonious industrial relations at alllevels. The enthusiasm and unstinting efforts of employees have enabled the Company toremain at the leadership position in the industry. It has taken various steps to improveproductivity across organization.

Acknowledgements

Your Directors would like to express their sincere appreciation for the assistance andco-operation received from the Government authorities customers vendors financialinstitutions banks and members during the year under review. Your Directors also wish toplace on record their deep sense of appreciation for the committed services by theCompany's executives staff and workers without which the Company would not have been ableto undertake the challenging targets in all areas of operations. Your Directorsacknowledge the exemplary contribution made by the employees of the Company.

The Directors value the trust shown by the shareholders in their ability to manage theCompany. We expect that with the ongoing encouragement and support of our shareholders weshall be successful in achieving the desired objectives in the near future

For and on behalf of the Board
Nikhil Nanda
Date : 26.05.2016 Managing Director
Place : New Delhi DIN: 00051501

Conservation of Energy Technology Absorption Foreign Exchange Earnings and Outgo

1. Conservation of Energy

Wherever possible energy conservation measures have been implemented. However effortsto conserve and optimize the use of energy through improved operational methods and othermeans are being continued on an on-going basis. The energy consumption and the cost ofproduction are kept under control. Wastage of energy has been minimized to a negligiblelevel by switching off the electronic equipments as and when not in use.

Requisite data in respect of energy conservation is given below:

Power and fuel Consumption Units 2015-16 2014-15
1. Electricity
(A) Purchased
Units Kwh 3859380 3067020
Total Amount Rs.In Lacs 265.56 231.99
Rate/Unit Rs. 6.88 7.56
(B) Own Generator
Through Diesel Generator Units Kwh 166329 160405
Unit per litre of Diesel Oil Kwh 3.3 2.94
Cost/Unit Rs. 16.68 17.13
Through steam turbine/generator
2. Other/Internal generation light/diesel oil/furnace oil
(A) Quantity Total Cost
Average Rate - -
(B) Consumption Per unit of Production
1) Electricity
Oral Care Products Kwh/Per Unit 0.03 0.03
2) Through Diesel Generator Oral Care Products Kwh/Per Unit 0.03 0.03

2. Research & Development (R&D) & Technology Absorption

The company has continued its endeavor to absorb best of the technologies for itsproducts range to meet the requirements of globally competitive markets. The Companyundertakes from time to time various studies for process improvement quality improvementand economies in production cost. The Company has a R&D team having good experienceand well equipped with all the latest technologies and machines that help the Company tocompete with the competitors who exist in both Organized and unorganized Sector.

Disclosure of Particulars With respect to Technology Absorption

i) Specific areas in which R&D carried out by the Company :

• Project of Global significance

• Technology upgradation

• Quality enhancement to achieve International Standards

• New Process Development

• Analysis of alternative raw materials

ii) Benefits derived as a result of the above R&D and Future plans of action

The R&D efforts are dedicated to development of new products and continuousimprovement in process quality and cost of existing products. The combined effortsensured a strong portfolio in all categories including Oral Care Health Care and PersonalCare products.

iii) Expenditure of R & D

2015-16 2014-15
Particulars (Amount in Rs.) (Amount in Rs.)
1 Capital NIL NIL
2 Recurring NIL NIL
3 Total NIL NIL
4 Total R&D Expenditure as a percentage of total turnover NIL NIL

3. Foreign exchange earnings and outgo

Particulars 2015-16 2014-15
Foreign Exchange Outgo
Travelling 756533 175827.00
Raw Materials 17597695 13690273.00
Business Promotion 465655
WIP 640378
Spare Parts 236664
Capital Goods 2415773 -
Foreign Exchange Earning
Earning in Foreign Exchange -