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Bombay Dyeing & Manufacturing Company Ltd.

BSE: 500020 Sector: Industrials
NSE: BOMDYEING ISIN Code: INE032A01023
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VOLUME 24386
52-Week high 321.60
52-Week low 66.60
P/E 46.67
Mkt Cap.(Rs cr) 5,369
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OPEN 263.50
CLOSE 262.10
VOLUME 24386
52-Week high 321.60
52-Week low 66.60
P/E 46.67
Mkt Cap.(Rs cr) 5,369
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Bombay Dyeing & Manufacturing Company Ltd. (BOMDYEING) - Director Report

Company director report

To the members

Your Directors have pleasure in presenting their Report on the business and operationsof the Company along with the audited financial statements for the year ended 31stMarch 2018.

1. FINANCIAL RESULTS

(Rs in crore)

Financial Year ended

Particulars

Standalone

Consolidated

31/03/2018 31/03/2017 31/03/2018 31/03/2017
GROSS TURNOVER AND OTHER INCOME 2744.00 2100.60 2744.00 2100.60
Profit before Finance Cost Depreciation Amortization expenses and 632.83 351.35 632.83 351.35
Exceptional item
Less: Finance Costs 412.51 368.45 412.51 368.45
Profit/(Loss) before Depreciation Amortization expenses and Exceptional 220.32 (17.10) 220.32 (17.10)
item
Less: Depreciation and Amortization expenses 29.88 34.09 29.88 34.09
PROFIT/(LOSS) BEFORE TAX AND EXCEPTIONAL ITEM 190.44 (51.19) 190.44 (51.19)
Less: Exceptional item 153.25 67.48 153.25 45.81
Add: Share of profit of equity accounted investees - - 0.77 0.05
PROFIT/(LOSS) BEFORE TAX 37.19 (118.67) 37.96 (96.95)
Less: Tax (net) 2.78 29.57 2.78 29.57
PROFIT/(LOSS) AFTER TAX 34.41 (148.24) 35.18 (126.52)
Add: Other Comprehensive Income 284.76 604.73 284.76 604.73
Total Comprehensive Income 319.17 456.49 319.94 478.21
Add: Balance in Statement of Profit and Loss of Previous Year (Incl. OCI) (25.72) (469.78) (26.26) (492.04)
SURPLUS AVAILABLE FOR APPROPRIATIONS
Appropriations to:
Dividend 14.46 10.33 14.46 10.33
Dividend Distribution Tax 2.94 2.10 2.94 2.10
Balance carried to Balance Sheet (Incl. OCI) 276.05 (25.72) 276.28 (26.26)

Previous year figures have been regrouped where necessary and have been re-stated asper Ind AS.

2. COMPANY RESULTS AND DIVIDEND

The Company has drawn up its accounts for the first time under Ind AS. The figures forthe previous year have been suitably adjusted as appropriate to conform to the Ind ASrequirements.

The Company's turnover and other income for the year was

` 2744.00 crore as against ` 2100.60 crore in the previous year. The profit after taxis` 34.41 crore as against a loss of

` 148.24 crore in the previous year. The profit for the current year would have beeneven higher but for an exceptional provision of

` 153.25 crore made in regard to the perceived doubtful recovery of advance made to theCompany's Joint Venture P.T. Five Star Textile Indonesia spelt out in detail in Note 41to the accounts.

During the year the Company successfully rationalised number of lenders to improveoperating efficiency. This greatly helped management of large volume of cash will alsohelp tightly monitor and control finance costs in future.

The construction of the two towers at Island City Center ("ICC") Dadar byBombay Realty is nearing completion and handover to the buyers will be done as committedwhich will generate net cash inflows thereby easing the company's debt burden.

Polyester Staple Fibre ("PSF") industry saw a sluggish growth of 3% in volumein the country which was mainly met through new capacities commissioned during the year.Continuing cheap imports from China disrupted the domestic market impacting the

Company's PSF business. The PSF Division will continue to focus on innovative productmix and cost reduction initiatives in order to counter these factors.

Home & You the Company's Retail business will be investing in design expansionowning the digital printing space through TVC media campaigns to reinforce its leadershipposition. Sales. In this process it channels proliferation will be a thrust area. TheCompany would be launching new franchise model and explore high volume institutionalbusiness in the current year.

Having regard to the above your Directors have recommended a higher dividend of ` 1/-per equity share of ` 2/- each which is subject to shareholders' approval.

3. CONSOLIDATED FINANCIAL RESULTS

As stipulated by Regulation 33 of the SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 ("Listing Regulations 2015") the Company hasprepared Consolidated Financial Statement in accordance with the applicable accountingstandards as prescribed under the Companies (Accounts) Rules 2014 of the Companies Act2013 ("the Act").

Financial Statement reflects the results of the The

Company and that of its associates. As required under Regulation 34 of ListingRegulations 2015 the Audited Consolidated Financial Statement together with theIndependent Auditors' Report thereon is annexed and forms part of this Report.

The summarized Consolidated Financial Statement is provided above in point No. 1 ofthis Report.

4. BOMBAY REALTY

Bombay Realty had a highly satisfactory year. With the receipt of the regulatoryapprovals and the consequent pick up in construction activity the Division is now fullygeared to complete the construction as per schedule and ensure timely delivery of the twoICC towers.

The revenues from real estate activity as per Ind AS reporting for FY

2017-18 adopted during the year were ` 1182.91 crore as compared to ` 515.28 crore inFY 2016-17 reporting a growth of 130% over last year. The business is poised to becomethe single largest revenue earning Division of the Company on topline basis and will be asubstantial contributor to the bottom line growth of the Company.

The Division is complying with the Real Estate (Regulation and

Development) Act 2016 ("RERA") requirements and giving the clients atransparent and fully compliant project information the promise of timely delivery withworld class construction quality and amenities. The increased pace of construction willmean completion of two ICC towers within a record construction time of 42 months. Theconstruction of the slum project at ICC is ready for delivery.

The ICC flats are uniquely positioned in market and the demand for the units has pickedup substantially driving faster sales in an otherwise struggling real estate marketimpacted by changing policy framework the demonetization effect and general economicslowdown. Ever growing enquiries and higher footfalls are likely to result in increasedsales and the resultant cash flow The Division is well poised to monetise its assets bothin ICC and WIC and with the DCR 2034 enhancing the land potential for development; it islooking at forging additional projects in the coming year.

With the experience of successfully executing the two large ICC projects the Divisionis aiming to becoming a best in class with a name to reckon with in the real estateindustry.

5. HOME & YOU

For first half of the year under report the Division experienced revenue pressure ledby weak market demand. However there was recovery in the latter half of the year withrevival of general trade channel which was showing de-growth in the first six months andreported growth of 24% in the second half. Modern trade channel opened 842 stores by endof the financial year. The coming year shows even more promise when the Division will lookto consolidate leadership position by owning digital bed sheet platform as well as throughthe launch of innovative make your own bed sheet campaign.

6. POLYESTER DIVISION

The Division achieved a turnover of ` 1251.95 crore during the year as compared to `1214.45 crore in the previous year. In volume terms there was an increase of slightlyover 3 %. The raw material and PSF prices remained volatile during the year tracking themovement in petrochemicals and crude oil prices.

The average capacity utilization was 93% significantly better than the industryaverage capacity utilization of below 80%.

The sluggish market sentiment in the domestic polyester staple fibre industry wasreflected in an overall growth of 3% compared to the previous year. New capacities ofaround 12% of existing capacity became fully operational during the year far exceedingthe growth in domestic demand resulting in underutilization of domestic capacity.Increased volatility in raw material prices surplus production capacities and imports atsignificantly lower prices has posed challenges to the Company's Polyester business whichit will seek to counteract with innovative product mix and cost reduction initiatives.

7. SUBSIDIARIES ASSOCIATES AND JOINT VENTURES

Pursuant to Section 129(3) of the Companies Act 2013 read with Rule 5 of the Companies(Accounts) Rules 2014 the statement containing salient features of the financialstatements of the

Company's Associates and Joint Venture (in Form AOC-1) is forming part of theConsolidated Financial Statement.

8. FIXED DEPOSITS

During the year the Company repaid the deposits aggregating to ` 0.80 crore.

Total deposits outstanding as on 31st March 2018 amounted to

` 77.09 crore out of which 80 deposits aggregating ` 0.47 crore had matured butremained unclaimed.

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

The information pertaining to conservation of energy technology absorption foreignexchange earnings and outgo as required under Section 134 of the Companies Act 2013 readwith Rule 8 of the Companies (Accounts) Rules 2014 is annexed herewith as "AnnexureA".

10. RELATED PARTY TRANSACTIONS

There were no materially significant parties during the financial year under reviewwhich were in conflict with the interest of the Company. Suitable disclosure as requiredby the Accounting Standards (Ind AS 24) has been made in the notes to the FinancialStatement.

As required under Regulation 23 of SEBI (Listing Obligations and Disclosures)Regulations 2015 the Company has formulated a policy on Related Party Transactions whichhas been put up on the website of the Company: http://www.bombaydyeing.com/pdfs/corporate/corporatepdf11.pdf

11. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 are given in the Notes to the Financial Statement.

12. INSURANCE

All the properties including buildings plant and machinery and stocks have beenadequately insured.

13. REPORTING OF FRAUDS BY AUDITORS

During the year under review neither the statutory auditors nor the secretarialauditor has reported to the audit committee under Section 143 (12) of the Companies Act2013 any instances of fraud committed against the Company by its officers or employeesthe details of which would need to be mentioned in the Directors' Report.

14. ANNUAL RETURN

The extract of Annual Return pursuant to the provisions of Section 92 of the CompaniesAct 2013 read with Rule 12 of the Companies (Management and Administration) Rules 2014is furnished in form MGT – 9 in "Annexure B" of this Report.

15. DIRECTORS AND KEY MANAGERIAL PERSONNEL At the Annual General Meeting (AGM) of theCompany held on 10th August 2017 the members of the Company appointed Mr.Vinesh Kumar Jairath as an Independent Director for a term of five years with effect from9th February 2017 and Mr. Keki M. Elavia as an Independent Director for aterm of five years with effect from 22nd May 2017. Dr. (Mrs.) MinnieBodhanwala was also appointed in the said AGM as a Non-Executive Non-IndependentDirector liable to retire by rotation with effect from 29th March 2017.

Mr. Ishaat Hussain ceased to be a Director of the Company w.e.f. 10thAugust 2018. The Board places on record its appreciation towards valuable contributionmade by Mr. Ishaat Hussain during his tenure as a Director of the Company. In accordancewith the provisions of the Companies Act 2013 and the Articles of Association of theCompany Mr. Nusli N. Wadia (DIN: 00015731) retires by rotation and is eligible forreappointment.

By the Notificationdated 9th May 2018 Securities and Exchange Board ofIndia ("SEBI") amended the Listing Regulations 2015 transactions with relatedby incorporating Regulation 17(1A) in the Listing Regulations 2015 to be effective from 1stApril 2019. According to the said Regulation no listed company shall appoint or continuethe directorship of a person who has attained age of 75 years unless special resolution ispassed to that effect.

Mr. Nusli N. Wadia is 74 years as on date and therefore a special resolution isproposed in ensuing Annual General Meeting for continuation of holding office of Non-Executive Director of the

Company by Mr. Nusli N. Wadia who will be above the age of 75 years as on 1stApril 2019 to comply with the above amendment. Similarly Mr. A. K. Hirjee Mr. S. M.Palia Mr. S. S. Kelkar and Mr. R. A. Shah have also attained the age of 75 years.However Mr. S. M. Palia and Mr S. S. Kelkar have expressed their desire to step down fromthe Board during the financial year 2018-19. Thereforeit is proposed to pass specialresolutions at the ensuing

AGM of the Company for continuation of remainder term of only Mr. A. K. Hirjee (DIN:00044765) and Mr. R. A. Shah (DIN: 00009851) i.e. upto 7th August 2019.

Necessary resolutions for re-appointment/continuation of Directorship past the age of75 years of aforesaid Directors have been included in the notice of the ensuing AGM andrequisite details have been provided in the explanatory statement of the notice. The Boardrecommends their re-appointment/ continuation as Directors of the Company.

All the Independent Directors have given a declaration that they meet the criteria ofindependence as laid down under Section 149 of the Act and affirmed compliance with Wadiacode of conduct as required under Regulation 26(3) of SEBI (LODR) Regulations 2015.

For the Non-Executive Directors apart from reimbursement of expenses incurred in thedischarge of their duties the remuneration that these directors were entitled to underthe Act as Non-Executive Directors and the remuneration that a Non-Executive Director mayreceive for professional services rendered to the Company through a firm in which he is apartner none of these directors have any other pecuniary relationship with your Company.

Seven Board Meetings were duly convened and held during the year and the details ofBoard/Committee meetings held are provided in the Corporate Governance Report. The gapbetween meetings was within the period prescribed under the Companies Act 2013 andListing Regulations.

Key Managerial Personnel

During the year under review Mr. Pushpamitra Das Chief

Financial Officer resigned with effect from 30th June 2017. Mr. VishnuPeruvemba was appointed as the Chief Financial

Officer ("CFO") of the

8th November 2017. He joined as CFO of the Company w.e.f. 5thJanuary 2018.

Board Evaluation

Pursuant to the provisions of the Companies Act 2013 and Regulation 17 of ListingRegulations 2015 the Board has carried out an annual performance evaluation of its ownperformance and that of its statutory committees viz. Audit Committee StakeholderRelationship Committee Nomination and Remuneration Committee and Corporate SocialResponsibility

Committee and that of the individual Directors. The manner in which the evaluation hasbeen carried out has been explained in the Corporate Governance Report.

Nomination and Remuneration Policy

The Board has adopted on recommendation of the Nomination &

Remuneration Committee a policy for selection and appointment of Directors SeniorManagement and their remuneration. A brief detail of the policy is given in the CorporateGovernance Report and also posted on the website of the Company: http://www.bombaydyeing.com/pdfs/corporate/corporatepdf09.pdf

16. DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act 2013 the Board of Directors to thebest of their knowledge and ability confirm that: a) in the preparation of the AnnualAccounts the applicable accounting standards have been followed and there are no materialdepartures; b) they have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit of the Company for that period; c) they have taken proper and sufficient carefor the maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudand other irregularities; d) they have prepared the Annual Accounts on a going concernbasis; e) they have laid down internal financial controls to be followed by the Companyand that such internal financial controls are adequate and are operating effectively; andf) they have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems are adequate and operating effectively.

Based on the framework of internal financial controls and compliance systemsestablished and maintained by the Company at theBoardMeetingheldon work performed by theinternal statutory cost and secretarial auditors and external consultant(s) and thereviews performed by Management and the relevant Board Committees including the AuditCommittee the Board is of the opinion that the Company's internal financial controls wereadequate and effective during the financial year 2017-18.

17. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to Regulation 17(7) of Listing Regulations 2015 the Management Discussionand Analysis Report is given in "Annexure C" to this Report.

18. CORPORATE GOVERNANCE

A separate report on Corporate Governance pursuant to Regulation 34(3) of ListingRegulations 2015 read with Part C of Schedule

V thereof along with a certificate from the Statutory Auditors of the Companyregarding compliance of the conditions of Corporate Governance are annexed to this Reportas "Annexure D".

19. BUSINESS RESPONSIBILITY REPORT

Pursuant to Regulation 34(2) of Listing Regulations 2015 the Business ResponsibilityReport ("BRR") of the Company for FY 2017-18 is forming part of this Report as"Annexure E".

20. PARTICULARS OF EMPLOYEES

The details of remuneration of directors KMPs and employees as required under Section197 of the Companies Act 2013 ("the Act") read with Rule 5(1) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 forms part of thisReport as "Annexure F". However as per the provisions of Section 136 of theAct the Annual Report is being sent to the Members and others entitled thereto excludingthe information on employees' remuneration particulars as required under Rule 5(2) &(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014which is available for inspection by the Members at the Registered Office/Corporate Officeof the Company during business hours on working days of the Company up to the date of theensuing Annual General Meeting. If any Member is interested in obtaining a copy thereofsuch Member may write to the Company in this regard.

21. AUDITORS

Statutory Auditors

Pursuant to Section 139 of the Companies Act 2013 the Company's Auditors M/s.Kalyaniwalla & Mistry LLP Chartered Accountants Mumbai retire at the ensuing AnnualGeneral

Meeting of the Company. The Company proposes to appoint

M/s. Bansi S. Mehta & Co. (Firm Registration No. 100991W) as the Statutory Auditorsof the Company for a period of 5 years from the conclusion of 138th AnnualGeneral Meeting until the conclusion of 143rd Annual General Meeting. They haveconfirmed their eligibility under Section 141 of the Act and the Rules framed there underfor appointment as Auditors of the Company.

As required under Regulation 33 of Listing Regulations 2015 the auditors have alsoconfirmed that they hold a valid certificate issued by the Peer Review Board of theInstitute of Chartered Accountants of India.

Cost Auditors

Pursuant to Section 148 of the Companies Act 2013 read with Rule 14 of the Companies(Cost Records and Audit) Amendment Rules 2014 the cost audit records of the Company arerequired to be audited. The Directors on the recommendation of the Audit

Committee appointed M/s. D. C. Dave & Co. Cost Accountants to audit the costaccounts of the Company for the financial ending 31st March 2019 on aremuneration of ` 500000/- (Rupees Five Lakh) plus out of pocket expenses and applicabletaxes. The remuneration payable to the Cost Auditor is required to be ratified by theshareholders at the ensuing AGM.

Secretarial Auditors

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 has appointed

Parikh & Associates a firm of Company Secretaries in Practice to undertake theSecretarial Audit of the Company. The Report of the Secretarial Auditor is annexedherewith as "Annexure G".

Internal Auditors

At the Board Meeting held on 14th May 2018 M/s. Ernst & YoungChartered Accountants were re-appointed as the Internal

Auditors of the Company for financial year 2018-19.

22. SIGNIFICANT OR MATERIAL ORDERS

There were no significant and regulators or courts or tribunals which would impact thegoing concern status and the Company's operations in future.

23. MATERIAL CHANGES

There was no reportable material event in the Company during the year.

24. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal Audit plays a key role in providing an assurance to the Board of Directorswith respect to the Company having adequate

Internal Financial Control Systems. The Internal Financial

Control Systems provide among other things reasonable assurance of recording thetransactions of its operations in all material respects and of providing protectionagainst significant misuse or loss of Company's assets. Details about the adequacy ofInternal Financial Controls are provided in the Management Discussion and Analysis Report.

25. INDIAN ACCOUNTING STANDARDS (Ind AS)

Your Company has adopted Indian Accounting Standards ("Ind AS") for theaccounting period beginning on 1st April 2017 pursuant to Ministry ofCorporate Affairs Notification dated 16th February 2015 notifying theCompanies (Indian Accounting Standard) Rules 2015.

26. CORPORATE SOCIAL RESPONSIBILITY

The Company has constituted a Corporate Social Responsibility

(CSR) Committee in accordance with Section 135 of the Companies Act 2013 comprisingof four Directors including Independent Directors.

For the current financial year 2017-18 as the average profit for the last three yearsis negative the Company decidedyear not to spend any amount on CSR. However the unspentCSR amount of

` 4 lakh of the previous year was spent for CSR activity during the financial year(Refer Annexure H).

27. AUDITORS QUALIFICATIONS

Statutory Auditors' Report and Secretarial Auditors' Report do not contain anyqualification reservation or adverse remark.

28. RISK MANAGEMENT POLICY

The Company has formulated a Risk Assessment & Management

Policy. Your attention is drawn to the Report on Corporate Governance for details.

29. AUDIT COMMITTEE

The Audit Committee of the Company comprises of 6 Independent Directors. Thecomposition of directors and other details are provided in the Corporate Governance Reportof the Company.

The Company has established a vigil mechanism through the

Committee wherein the genuine concerns can be expressed by material the employees anddirectors. The Company has also provided orders passed by the adequate safeguards againstvictimisation of employees who express their concerns. The Company has provided thedetails of the vigil mechanism in the Whistle Blower Policy in the Corporate GovernanceReport and also posted these on the website of the Company:http://www.bombaydyeing.com/pdfs/corporate/ Whistle_Blower_Policy.pdf

30. APPRECIATION

The Directors express their appreciation to all employees of the various divisions fortheir diligence and contribution to performance. The Directors also record theirappreciation for the support and co-operation received from franchisees dealers agentssuppliers bankers and all other stakeholders. Last but not the least the Directors wishto thank all shareholders for their continued support.

On behalf of the Board of Directors

Place: Mumbai NUSLI N.WADIA Date: 14th May 2018. Chairman

ANNEXURE A to Directors' Report

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

[Section 134(3)(m) of the Companies Act 2013 read with Rule 8(3) of the Companies(Accounts) Rules 2014]

A. CONSERVATION OF ENERGY

(a) Energy Conservation measures taken

PSF operations

1. Polymer filter candles replaced with modified design.

2. Usage of high GCV coal to reduce auxiliary power consumption.

3. Cooling tower cell # 5 structural revamp.

4. VFD Provision in Virgin EG pump Fire pump & Coal boiler's FD fan.

5. Quench Temp is optimized with Product requirement.

6. Chilled water set point optimized.

7. Both Chiller overhauling completed for power saving.

8. Puller cooler water circulation pump kept stopped with process optimization.

9. Cooling Tower fan 6 replaced with modified hollow

FRP.

10. Intrinsic Viscosity optimization to reduce load on Gear Pumps.

11. ETP RVF vacuum pump replaced with upgraded version.

12. Oligomer pump refurbished for better efficiency.

13. Slurry Density control with pressure control loop. 14. SOV provision in Annealer toforce close Steam during idle period.

15. Biogas hood repairing to maximize Biogas generation. 16. Process optimization toreduce Steam consumption. 17. Optimization of Process HTF vents to avoid heat loss. 18.Installation of upgraded KVX system for RLNG saving.

(b) Additional Investments & proposals if any being implemented for reduction ofconsumption of energy

PSF operations

- Installation of Steam Turbine in place of PRDS.

- Installation of Energy efficient Cooling Tower pump &

Chillers.

- Manual Baling press for reduction in Energy Consumption.

- Provision of spare PA Fan in FBC Boiler.

- Recycling of Spin Finish & DM water.

- Rain Water harvesting from Warehouse roof.

- Stoppage of Pre-feed Bath circulation pumps.

- Installation of LED lights in plant & office area.

- Provision of VA Chiller from CP waste heat.

- Energy Conservation by various process improvement projects.

(c) Impact of measures at (a) & (b) for reduction of energy consumption andconsequent impact on the cost of production of goods.

PSF operations

- Improvement in specific energy consumption & cost per MT of PSF production.

(d) Total Energy Consumption and Energy Consumption per unit of production inprescribed Form A.

- As per ‘Form A' attached.

B. TECHNOLOGY ABSORPTION

Research and Development (R & D).

1. Specific areas in which R&D carried out by the company

PSF operations

- New SUPER FIBRE (0.6 to 1.0 D) were successfully produced & commercialised.

- Production of low shrinkage annealed fibre.

- Various new product development.

- Process change for PSF quality (T10) improvement.

- Medium tenacity product developments for Nonwovens.

- Usage of upgraded version KVX in HTF heater.

2. Benefits derived as a result of the above R&D

PSF operations

- Diversity of product mix & availability of value added products.

- Improved customer base & market share.

- Quality consistency with improved operational performance at customer end.

- Risk mitigation against up-coming new competitors in the market.

- Energy conservation with improved operational reliability.

3. Future plan of action

PSF operations

- Key focus is to increase the volume of specialty value added products.

- Development of hardware and improvement in process SOP for the production of SuperMicro Products.

- Increase in volume of nonwoven & technical textile end use products.

- Execution of various process improvement projects for reduction in energyconsumption.

- Investment for improvement in energy & operational efficiency.

4. Expenditure on R & D

- Expenditure reported on R & D during the year under report: ` 1.50 crore(Previous year ` Nil).

TECHNOLOGY ABSORPTION ADAPTATION AND INNOVATION

1. Efforts in brief made towards technology absorption adaptation and innovation: PSFoperations

- Use of modified design Polymer filter candles.

- Hardware modification to improve coal boiler efficiency.

- Chillers made energy efficient by overhauling & upgrading microprocessor cards.

- Draw machine start-up logic modified to increase yield productivity.

- Process optimisation & design change for energy conservation.

- Productivity of high staple length technical textile fibres was improved.

2. Benefits derived as a result of the above efforts:

PSF operations

- Better yield & productivity

- Increased volume of value added speciality products.

- Increased market share with diversified product mix.

- Improved customer satisfaction.

- Reduction in cost of production.

3. Information regarding technology imported during the last 3 years:

- Technology imported: – Nil

- Year of import: – N/A

- Has Technology been fully absorbed: – N/A

- If not fully absorbed areas where this has not taken place reasons therefore andfuture plans of action: – N/A

- PSF operation: – Nil

& 4. Foreign Exchange Earnings & Outgo: (i) Total foreign exchange used andearned:

` in crore Total foreign exchange used 533.16 Total foreign exchange earnings 285.60

(ii) Activities relating to exports initiatives taken to increase exports developmentof export markets for products and services and export plans:

New export markets are being developed and emphasis is being placed on export of valueadded products.

On behalf of the Board of Directors Place: Mumbai NUSLI N.WADIA Date: 14thMay 2018 Chairman