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BSE: 500187 Sector: Consumer
NSE: HSIL ISIN Code: INE415A01038
BSE 00:00 | 20 Jul 330.15 -2.30






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OPEN 320.15
52-Week high 564.35
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P/E 29.37
Mkt Cap.(Rs cr) 2,387
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OPEN 320.15
CLOSE 332.45
52-Week high 564.35
52-Week low 311.00
P/E 29.37
Mkt Cap.(Rs cr) 2,387
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HSIL Ltd. (HSIL) - Director Report

Company director report

Dear members

Your Directors are pleased to present the Fifty Seventh Annual Report and the Company'saudited financial statement for the financial year ended 31 March 2017.


The Company's standalone financial performance for the year ended 31 March 2017 issummarized below.

(Rs. in Lakh)
Particulars 2016-17 2015-16
Revenue from Operations 222990 210909
Add Other Income 455 1434
Total Income 223445 212343
Profit before tax 14965 18195
Less Tax expenses 4664 6567
Profit after tax (i) 10301 11628
Other Comprehensive Income (net of tax) 254 (2)
Total Comprehensive Income 10555 11626
Add balance brought forward (ii) 44667 36084
Amount available for appropriation [(i) + (ii)] 54968 47712
Dividend paid on equity shares 2892 2530
Tax on Dividend paid 589 515
Balance carried forward 51487 44667

(Figures have been rounded off)


Your Company reported consistent performance during FY2016-17 to maintain leadershipposition across key business segments and continued its upward trajectory in new avenuesof business namely Consumer Products. Your company's sales grew by 6.97% to reach^219803 lakh in FY2016-17 compared with ^205490 lakh in FY2015-16. Due to challengingbusiness environment on account of demonetization exercise and slowdown in demand from endusers of packaging products division increased expenditure on fostering growth ofconsumer products division and increased pressure on margins from rise in power & fueland other expenses the company's EBITDA declined 12.91% to Rs.29385 lakh in FY2016-17from Rs.33743 lakh in the previous year.


The BPD revenue went up by 7.98% to touch Rs.103765 lakh in FY2016-17 as againstRs.96096 lakh in FY2015-16. EBIT before unallocable expenditure declined by 3.36%.

The division's highlights during FY2016-17 spanned a series of innovative developmentsincluding launched a new rimless water closet in seven different designs launched sevennew ranges of faucets added new dealers in clusters which saw increased consumerism bothin tier 1 and tier 2 towns increased brand shoppe footprint by establishing around 200+brand stores introduced "Dream Bath" Mobile App to enhance customer experienceand convenience.


The PPD revenue reduced by 2.83% to Rs.96906 lakh in FY2016-17 as against Rs.99727lakh in FY2015-16. EBIT before unallocable expenditure declined by 20.48%.

The division reported improved operational performance at the back of variousinitiatives introduced 55 new designs and 35 lightweight glass containers during the yearunder review. invested in a dedicated line for coloured bottles. expanded PET bottlesportfolio with 10 new products and 12 variants. investments in additional capability innew polymers and processes to create new business opportunities in Rigid Plastic Packagingacross Food Pharma and FMCG sectors.


The CPD revenue grew by 124.31% to Rs.12770 lakh in FY2016-17 from Rs.5693 lakh inFY2015-16. EBIT level loss before unallocable expenditure increased by 47.99%.

The division reported excellent operational performance at the back of variousinitiatives introduced superior and aesthetically designed variants in existing productcategories (42 kitchen appliances 29 water heaters 5 water purifiers) entered the waterpurifier space with an innovative product with unique Hexapure technology. enhanced brandvisibility with new campaigns like

Moonbow's 'Ab India Peeyega Achcha' for water purifiers.

Added 1500+ retailers during the year.

Leveraged e-tailing sites such as Amazon India Flipkart Pepperfry Paytm to name afew to market its flagship products to enhance customer convenience. launched air coolerswith changeable front panels [first time in India] to match the decor of the consumersliving room/bedroom.


Revenue of Retail business grew by 2.65% to Rs.9583 lakh in FY2016-17 from Rs.9336lakh in FY2015-16. EBIT level loss before unallocable expenditure reduced by 9.25%.

The division reported improved operational performance at the back of variousinitiatives uniquely positioned itself to offer largest range of solid wood furnitureenriched its assortment in Non-Solid wood domain presence across the country through 14large format retails stores with an average size of 8000 sqft. Leveraged e-tailing sitessuch as Amazon India Flipkart Pepperfry Urbanladder Snapdeal to name a few to marketits entire range of products


During the year under review the Board of Directors in their meeting held on 10 August2016 had approved the Composite Scheme of Arrangement under Sections 391 to 394 read withSections 100-104 of the Companies Act 1956 and/or applicable Sections of the CompaniesAct 2013 between Hindware Home Retail Private Limited (the transferor) (wholly ownedsubsidiary) and the Company (the transferee) and their respective shareholders andcreditors. The said scheme was approved by National Stock Exchange of India Ltd. and BSELtd. on 13 October 2016 and 14 October 2016 respectively and thereafter the Company hasreceived an order dated 7 April 2017 (made over to the Company on 5 May 2017) fromNational Company Law Tribunal Kolkata Bench approving the said scheme. In accordancewith the said order the retail business of Hindware Home Retail Private Limited has beendemerged into the Company with effect from 1 April 2015 (Appointed Date).

No material changes and commitments affecting the financial position of the Companyoccurred between the end of financial year of the Company to which the financialstatements relate and the date of this Report except that the effect of the scheme hasbeen given in the Financial Statements (standalone and consolidated) of the Company w.e.f.the appointed date.


The Company has no material subsidiary in accordance with the SEBI (Listing Obligationsand Disclosure Requirements) Regulations 2015. During the year under review QUEO BathroomInnovations Limited was incorporated on 7 November 2016 in England as a step downsubsidiary of HAAS International BV.

During the year the Board of Directors reviewed the affairs of the subsidiaries. Inaccordance with Section 129(3) of the Companies Act 2013 we have prepared consolidatedfinancial statements of the Company and all its subsidiaries which form part of theAnnual Report.

Further a statement containing the salient features of the financial statements of oursubsidiaries in the prescribed format AOC-1 forms part of the consolidated financialstatements and hence not repeated here for the sake of brevity.

The statements provide the details of performance financial positions of each of thesubsidiaries.

In accordance with Section 136 of the Companies Act 2013 the audited financialstatement including the consolidated financial statements and related information of theCompany and audited accounts of each of its subsidiaries are available on Company'swebsite http// These documents will also be available for inspectionat our registered office in Kolkata on any working day between 3 00 p.m. and 5 00 p.m.till the date of AGM.

The Policy for determining material subsidiaries as approved may be accessed on theCompany's website at the link http //


Your Directors have recommended a dividend of Rs.4/- (i.e. 200%) per equity share (lastyear Rs.4/- (i.e. 200%) per equity share) on equity shares of Rs.2/- each for thefinancial year ended 31 March 2017 amounting to Rs.3481 lakh (inclusive of DividendDistribution Tax Rs.589 lakh). The dividend payout is subject to approval of members atthe ensuing Annual General Meeting.

The dividend will be paid to members whose names appear in the Register of Members ason 22 July 2017 and in respect of shares held in dematerialized form it will be paid tomembers whose names are furnished by National Securities Depository Limited and CentralDepository Services (India) Limited as beneficial owners as on 21 July 2017


The Board proposes not to transfer any amount out of the profit for the year underreview to the general reserve.


Your Company has not accepted any deposits within the meaning of Section 73 of theCompanies Act 2013 and as such no amount of principal or interest was outstanding as onthe Balance Sheet date.


M/s Walker Chandiok & Co LLP Chartered Accountants Statutory Auditors of theCompany having Firm's Registration No. 001076N/N500013 hold office till the conclusion ofthe ensuing Annual General Meeting. The term of M/s Walker Chandiok & Co LLPChartered Accountants Statutory Auditors as per the provisions of Section 139 and theCompanies (Audit and Auditors) Rules 2014 of the Companies Act 2013 will expire onconclusion of the ensuing Annual General Meeting of the Company. In this view Company hasapproached M/s Lodha & Co. Chartered Accountants having firm Registration No.301051E and has obtained written confirmation from them confirming that they areeligible for appointment as Auditors of the Company under Section 139 of the CompaniesAct 2013 and meet the criteria for appointment specified under Section 141 of theCompanies Act 2013.

The Audit Committee and the Board of Directors recommend appointment of M/s Lodha &Co. Chartered Accountants having Firm's Registration No. 301051E as the Company'sStatutory Auditors from the conclusion of the ensuing Annual General Meeting till theconclusion of the 62nd Annual General Meeting of the Company for approval of Shareholdersat the ensuing Annual General Meeting of the Company subject to ratification by membersat every Annual General Meeting .

The Notes on Financial Statement referred to in the Auditors' report areself-explanatory and therefore do not require any further comments.


The Board had appointed M/s DMK Associates Company Secretaries New Delhi (Ms. MonikaKohli Practicing Company Secretary CP No. 4936) to conduct Secretarial Audit for thefinancial year 2016-17 pursuant to the provisions of Section 204 of the Companies Act2013 and Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014. TheSecretarial Audit Report in Form MR - 3 for the financial year 2016-17 is enclosed asAnnexure A to this Report. The Secretarial Audit Report does not contain any observationor adverse remark.


The particulars as prescribed in sub section (3)(m) of Section 134 of the CompaniesAct 2013 read with Companies (Accounts) Rules 2014 are enclosed as Annexure B to thisReport.


During the year under review the Company did not issue equity shares. The paid-upEquity Share Capital as on 31 March 2017 was Rs.1445.97 lakh.


In accordance with Section 134(3)(a) of the Companies Act 2013 the extract of theAnnual Return in Form No. MGT - 9 is enclosed as Annexure C to this Report.


Management Discussion and Analysis Report for the year under review as stipulatedunder Regulation 34 (2)(e) of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 is presented in a separate section forming part of the Annual Report.


Your Directors in terms of Section 134(3)(c) of the Companies Act 2013 state that:

a) in the preparation of the annual accounts for the year ended 31 March 2017 theapplicable accounting standards read with requirements set out under Schedule III to theAct had been followed and there are no material departures from the same

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 As at 31 March 2017 and of the profit ofthe

Company for the year ended on that date

c) the Directors 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

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 are adequate and operating effectively.


The report on Corporate Governance as stipulated under SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 forms an integral part of this Report. Therequisite certificate from the Auditors of the Company confirming compliance with theconditions of corporate governance is attached to the report on Corporate Governance.


All contracts/arrangements/transactions entered by the Company during the financialyear with related parties were in the ordinary course of business and on an arm's lengthbasis. The disclosure in Form AOC-2 is enclosed as Annexure D to this report. During theyear the Company has not entered into any contract/arrangement/transaction with relatedparties which could be considered material in accordance with the policy of the Company onmateriality of related party transactions.

The policy on materiality of related party transactions and dealing with related partytransactions as approved by the Board may be accessed on the Company's website at the linkhttp // transaction-policy-version-ii-new.pdf

Your Directors draw attention of the members to Note 53 to the financial statementswhich set out related party disclosures.


The Company has a Corporate Social Responsibility

Committee in place as per the provisions of Section 135 of the Companies Act 2013comprising of Mr. Salil Bhandari Chairman Dr. Rajendra Kumar Somany and Mr. SandipSomany as other members of the Committee.

The Company's Corporate Social Responsibility Policy (CSR Policy) duly approved by theBoard indicates the activities to be undertaken by the Company to fulfil the expectationof our Stakeholders and to continuously improve our social environmental and economicperformance while ensuring sustainability and operational success of our Company. TheCompany would also undertake other need based initiatives in compliance with Schedule VIIto the Companies Act 2013.

The guiding principles for all CSR initiatives of the Company are as follows:

- Establishing a guideline for compliance with the provisions of Regulations todedicate a percentage of Company's profits for social projects

- Ensuring the implementation of CSR initiatives in letter and spirit throughappropriate procedures and reporting and

- Creating opportunities for employees to participate in socially responsibleinitiatives.

The CSR Policy may be accessed on the Company's website at the link http// csr_policy_hsil.pdf.

The Annual Report on CSR Activities for the financial year 2016-17 is enclosed asAnnexure E to this Report.


During the year under review four Board Meetings were convened and held. For furtherdetails please refer Report on Corporate Governance which is forming part of this AnnualReport.


The Audit Committee comprises of Independent Directors namely Mr. V.K. Bhandari(Chairman) Mr. Salil Bhandari Mr. N.G. Khaitan and Mr. Ashok Jaipuria. For furtherdetails please refer Report on Corporate Governance which is forming part of this AnnualReport.

All the recommendations made by the Audit Committee were accepted by the Board.


The Company has in place a Whistle Blower Policy to establish a vigil mechanism forDirectors/Employees and other stakeholders of the Company to report concerns affecting thesmooth and efficient running of operations of the Company. This Policy documents theCompany's commitment to maintain an open work environment in which employees consultantsand contractors are able to report instances of unethical or undesirable conduct actual/suspected fraud or violation of the Company's Code of Conduct.

The Vigil Mechanism (Whistle Blower) Policy is available on Company's website at thelink http //www.hindwarehomes. com/pdf/vigil-mechanism-(whistle-blower)-version-ii.pdf


On the recommendation of the Nomination and Remuneration Committee the Board hasformulated Remuneration Policy for appointment of Directors Key Managerial PersonnelSenior Management and their remuneration.

The Remuneration Policy of the Company is enclosed as Annexure F to this Report.


As per Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 the top 500 listed Companies shall formulate a dividend distributionpolicy. Accordingly the policy was adopted to set out the parameters that will be takeninto account by the Board in determining the distribution of dividend to its shareholdersand /or retaining profit earned by the Company. The Policy is available on Company'swebsite at the link http //www.


Particulars of loans guarantees and investments covered under Section 186 of theCompanies Act 2013 forms part of the notes to the Financial Statements (Please refer NoteNos. 8 9 14 18 and 60).


Information required as per Section 197(12) of the Companies Act 2013 read with Rule5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014is enclosed as Annexure G to this Report.

Disclosures relating to remuneration and other details as required under Section197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 a statement showing the names and otherparticulars of the employees drawing remuneration in excess of the limits set out in thesaid rules is provided in the Annual Report which forms part of this Report. Havingregard to the provisions of the first proviso to Section 136(1) of the Act and as advisedthe Annual Report excluding the aforesaid information is being sent to the members of theCompany. The said information is available for inspection at the Registered Office of theCompany at Kolkata on any working day between 3.00 p.m. to 5.00 p.m. till the date of AGMand any member interested in obtaining such information may write to the Company Secretaryand the same will be furnished on request.


The organization is committed to ensuring an effective internal control environmentthat provides inter alia an assurance on the orderly and efficient conduct ofoperations security of assets prevention and detection of frauds and errors accurateand timely completion of accounting records and timely preparation of reliable financialinformation. Internal control systems have accordingly been designed to reflect itsnecessary compliance to the principle of governance where the freedom of operations andtheir management is exercised within a framework of appropriate checks and balances.

The Audit Committee of the Board of Directors comprising of Independent Directorsreviews the effectiveness of the internal control system across the Company includingannual plan significant audit findings adequacy of internal controls and compliance withaccounting policies and regulations. The Company's internal control system is monitored byIndependent consultants and supplemented by in-house Internal Audit Division.


In line with best practices applicable to organizations of a similar size nature andcomplexity the Company's internal control framework has been designed through structuredcontrol risk assessments by way of Standard Operating Procedures (SOPs) Risk and ControlMatrices (RACM) Policies including MIS. The defined and adequate Internal FinancialControls are tested from time to time for necessary improvement if any.


The Company has adopted a Risk Management Policy which establishes various levels ofaccountability and overview within the Company.

The Company has been taking necessary steps to mitigate foreseeable business risks.Business risk evaluation and management is an ongoing and continuous process within theCompany and regularly updated to the Audit Committee.


The Company has in place a Sexual Harassment Policy in compliance with the requirementsof the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal)Act 2013. The Company always endeavors to create and provide an environment that is freefrom discrimination and harassment including sexual harassment. The Internal ComplaintsCommittee (ICC) has been set up to redress complaints regarding sexual harassment if any.

The Directors further state that during the year under review there were no complaintsfiled pursuant to the Sexual Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013.


During the year under review the shareholders in their meeting held on 7 September2016 have approved the reappointment of Mr. Sandip Somany and re-designated him as ViceChairman and Managing Director of the Company with effect from 1 December 2016.

In accordance with the provisions of the Companies Act 2013 and the Articles ofAssociation of the Company Mr. G. L. Sultania Director of the Company retires byrotation at the ensuing Annual General Meeting and being eligible offered himself forre-appointment.

The present term of Dr. Rajendra Kumar Somany as Chairman and Managing Director of theCompany will expire by efflux of time on 8 January 2018. The Board is seekingshareholder's approval at ensuing Annual General Meeting for re-appointment of Dr.Rajendra Kumar Somany as Chairman and Managing Director of the Company for a furtherperiod of three consecutive years commencing from 9 January 2018 upto 8 January 2021.Profile of Dr. Rajendra Kumar Somany is given in the Statement under Section 102 of theCompanies Act 2013 to the Notice of the 57th Annual General Meeting of the Company.


The Company has received necessary declarations from all the Independent Directorsconfirming that they meet the criteria of independence as prescribed under Section 149(6)of the Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015.


The Board and the Nomination and Remuneration Committee reviewed the performance of theindividual Directors on the basis of the criteria and framework adopted by the Board. Inaddition the performance of Board as a whole and committees were evaluated by the Boardafter seeking inputs from all the Directors on the basis of various criteria.

In a separate meeting of Independent Directors performance of Non-IndependentDirectors performance of Board as a whole and performance of the Chairman was evaluatedtaking into account the views of the Executive Directors and Non-Executive Directors. Theevaluation process has been explained in the Corporate Governance Report section of theAnnual Report.

None of the Independent Directors is due for retirement and/or re-appointment at theensuing AGM of the Company.


The details of programmes conducted for familiarization of Independent Directors withthe Company nature of the industry in which the Company operates business model of theCompany etc. has been uploaded on the Company's website at the web linkhttp// training_of_directors.aspx.

For further details please refer Report on Corporate Governance which is forming partof this Annual Report.


Your Directors state that no disclosure or reporting is required in respect of thefollowing items as there were no transactions on these items during the year under review

1. Details relating to deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights as to dividend voting or otherwise.

3. Issue of shares (including sweat equity shares) to employees of the Company underany scheme.

4. Issue of Employees Stock Option to employees of the Company under any scheme.

5. Neither the Managing Directors nor the Whole-time Directors of the Company receiveany remuneration or commission from any of its subsidiaries.

6. No significant or material orders were passed by the Regulators or Courts orTribunals which impact the going concern status and Company's operations in future exceptHon'ble National Green Tribunal has issued an order dated 14 March 2017 for revocation ofconsent to operate and direction for closure of our Kaharani Faucets unit situated in thedistrict Alwar in the State of Rajasthan under Section 25/26 of the Water (Prevention andControl of Pollution) Act 1974 and Section 21/22 of the Air(Prevention and Control ofPollution) Act 1981.

It is endeavor of the Company to comply with all applicable laws including EnvironmentLaws and has installed prescribed equipment for effluent and sewerage treatment atKaharani manufacturing unit and that unit is a zero water discharge unit. Accordingly theCompany has complied with the prescribed law and disagrees with the contentions of theRajasthan State Pollution Control Board and has initiated necessary legal recourse againstthe order of Rajasthan State Pollution Control Board and expecting favourable responseagainst the same.


Your Directors would like to express their appreciation for the assistance andco-operation received from the financial institutions banks Government authoritiescustomers vendors and members during the year under review. Your Directors also wish toplace on record their deep sense of appreciation for the committed services by allemployees of the Company.

For and on behalf of the Board of Directors

Place Gurugram Dr. Rajendra Kumar Somany
Date 18 May 2017 Chairman and Managing Director



(A) Conservation of Energy

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

The Company has been continuously making efforts to optimise energy consumption. TheCompany has been choosing the most energy efficient equipments. Towards this energyconsumption is closely monitored and controlled. The Company is continuously makingefforts to reduce wastage in all its operations.

Energy constitutes a major part of cost and therefore we always focus on the areas ofpotential energy saving in the plants and offices. Being an ISO 14001 certified companywe are committed to minimise the use of natural resources. We acquire knowledge fromvarious sources about the technology upgradation/innovations in manufacturing processesand choose and install the most energy efficient equipments to ensure optimum use ofenergy.

a) Building Products Division (Sanitaryware and Faucets)

As hydrocarbon fuel is one of the important natural resource used in the ceramicmanufacturing process we keep strict monitoring on the fuel consuming equipmentsestablish and follow proper PPM schedules.

During the year for effective monitoring of the plant electricity consumption andreducing the line losses renovation of LT House and replacement of old transformers withthe new OLTC type transformer has been done at Bahadurgarh Sanitaryware Plant.

b) Packaging Products Division (Glass and Plastic Products)

• Key initiatives taken are as under:

• Daily monitoring of energy consumptions at all locations.

• Installation of capacitors bank for power factor improvement.

• Installation of LED light in place of HPSV lamp.

• Waste control by closely monitoring of process and stoppages.

• Installation of high speed blowers in place of low speed blowers.

• Installation of Heatless Vaporiser in place of electrical vaporiser.

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

a) Building Products Division (Sanitaryware and Faucets)

Installation of solar power plants at Bahadurgarh Sanitaryware Plant (Plant 1) andBibinagar Sanitaryware Plant (Plant 2) having capacity of 204 KWp and 500 KWprespectively.

b) Packaging Products Division


(iii) The capital investment on energy conservation equipments

Sl. No. Capital Equipment Capital investments on energy conservation equipments Energy saving/annum Financial Saving
(Rs. in Lakh) (units in KWH) (Rs. in Lakh)
(a) Building Products Division
Sanitaryware: Bahadurgarh Plant (Plant 1)
1 Installation of new LED tube lights in place of conventional lights 2.49 70810 5.66
2 Replacement of existing old exhaust fans with energy efficient fans in cast shop 1.6 65262 5.22
3 Process change for transfer of water from main water storage tank - transfer by gravity in place of pumping Nil 50510 4.04
4 Replacement of old ceiling fans with new energy efficient fans 9.96 139853 11.17
Sanitaryware: Bibinagar Plant (Plant 2)
1 Battery Operated Forklift 9.48 NA* 2.27
2 Replacement of old ceiling fans with new energy efficient fans 5.47 24679 1.84
3 Lighting Power Saving by semi automation 0.50 20049 1.34
Faucets: Kahrani Plant (Plant 3)
1 New Software for optimizing the cutting tool operation time 5.75 46464 3.48
2 Compressors with VFD 20.00 128000 9.60

*Fuel was saved by installation of this equipment.

(B) Technology Absorption

(i) The efforts made towards technology absorption

The Company has been making efforts to absorb the latest technology developments andhas taken following steps

a) Building Products Division

Concerned personnel are deputed to relevant seminars workshops and trainings for theupgradation of their knowledge and skills.

In house technical training and retraining is carried out from time to time.

Visits are arranged for the concerned persons to plants in other countries havingadvanced systems equipments and skills to import the relevant technology and look intothe possibilities of developing these indigenously to have easy availability and to savecost and time.

b) Packaging Products Division

Continuous in house technical training. Deputing concerned personnel to relevantseminars symposiums and workshop to upgrade skill and knowledge.

The company has continued its contract with the technology partner which enables thecompany to access state of the art technology.

(ii) The benefits derived like product improvement cost reduction product developmentor import substitution

a) Building Products Division

Achieving better productivity rejections minimization improvement in quality anddesign.

Conservation of energy in terms of fuel and electricity.

b) Packaging Products Division

55 new products developed.

Weight reduction and speed improvement of the existing products.

Indigenisation of the various mechanism and parts for import substitution.

(iii) In case of imported technology (imported during last three years reckoned fromthe beginning of the financial year)

Details of Technology imported Technology Import from Year of Import Status of implementation/ absorption in case fully absorbed If not fully absorbed areas where absorption has not taken place and the reasons thereof
A. Building Products Division (Sanitaryware Plant 1 & 2)
Replacement of old reciprocating type compressors with new screw type energy efficient compressor with variable speed drive Atlas Copco Belgium 2015 Fully Absorbed
Incorporating one additional compressor with new screw type energy efficient technology with variable speed drive Atlas Copco Belgium 2016 Fully Absorbed
Installation of Hydro Pneumatic System for water supply Grundfos Denmark 2016 Fully Absorbed -
B. Building Products Division (Faucets)
3 D printer (Modelling) Israel 2014 Fully Absorbed -
Robotic (Grinding and Polishing) Italy 2015 Fully Absorbed -
C. Packaging Products Division (Bhongir Plant)
PPC for NNPB Switzerland 2016-17 Fully absorbed -
Hot End Coating Hood Italy 2016-17 Fully absorbed -
Cold End Coating Machine Germany 2016-17 Fully absorbed -
Cold End Coating Machine China 2016-17 Fully absorbed -
Pick and Placer Singapore 2015-16 Fully absorbed -
LWN High Speed Blowers Germany 2016 -17 Fully absorbed -
New bottom and side wall inspection machines with high definition cameras France 2015-16 Fully absorbed -
D. Packaging Products Division (Hyderabad Plant)
LPG operated pallet shrinking m/c China 2015 Fully absorbed -

(iv) Expenditure incurred on Research and Development

(Rs. in Lakh)

Particulars 2016-17 2015-16
Capital Expenditure 2 -
Recurring Expenditure 112 82
Total 114 82
Total R&D expenditure as a % of total building product revenue (inch consumer product revenue) 0.10% 0.08%

(v) Foreign Exchange Earnings and Outgo

(Rs. in Lakh)

Particulars 2016-17 2015-16
Earning in foreign currency 5202 6070
Outgo of foreign currency 30406 31052
- Raw Material spare part and others 26559 30421
- Capital Equipment 3847 631