AFFLUENCE

COMPANY ENGAGED IN THE FIELD OF TEXTILE PRODUCTS ONLY   

I.        Conservation of Energy   a.       Energy conservation measures taken                                                                                     b.      Additional investments and proposals, if any, being implemented for reduction of consumption of energy.   c.      Impact of measures at (a) & (b) above for reduction of Energy consumption and consequent impact on the cost of production of goods.     :   Energy conservation continues to be an area of major emphasis. Efforts are made to optimize the energy cost while carrying out the manufacturing operations. All the units have taken various measures in conservation of energy. The thrust is to measure the existing system parameters and then implement improvements. The Company also focus to optimize the operation of various equipments which also lead to energy conservation. The following are some of the major measures which continued to be implemented during the period under review for bringing down the energy cost:   •     Installed Led Lights in place of tube rods   •     Installed FRP fans,   •     Installed LED street lights instead of CFL   •     Shifted air compressors due to long compressed air line   •     Installation of LED light in place of tube light   •     Installation of energy efficient IE3 motors   •     Use of compressed air guns & transvector nozzeles instead of open pipes •     Installation of Solar water heating system for pre heating of water Installation of Solar power generation plant •     Installed delta star kits   •     Installed air dryer.   •     Installed AC drives at Comber Main stream fan.   •     Heat Exchanger Install in Dye House.   •     Energy Efficient Motors installed.   •     Replacement of Aluminium Fan with FRP Fan.   •     Separation of the thermopac line for stenter to improve Speed, efficiency and production. •     Development of double folding inspection machines with automize function to reduce the process time. •     Designing and fabrication of special double inspection machine for the inspection of coating fabric and special flat inspection machine for Inspection the fabric. •  Planning to change machine drive belt pulleys of                   Ring Frames wherever applicable..   •     Continuous effort to reduce air leakages in order to reduce compressor units. •     Continuous emphasis on process optimisation, emphasis on preventive maintenance, waste reduction etc. •     Installing VFD in Rope Opener Machine   :   Rs. NIL.     :   As a result of various energy conservation measures taken by the company, the expected outcomes are : •     Increase in productivity.   •     Reduction in energy consumption.   •     Optimum loading of captive water sources.   •     Increase in Efficiency.   •     Saving in consumption of fuel.   •     Saving in maintenance cost of machineries.   •     Reduction in manpower cost.   •     Reduced approximately 300 KL soft water though re-collect usable hot water   46th  Annual Report 2017-2018 17 ALPS INDUSTRIES LTD.     d.             Total Energy Consumption and Energy Consumption per unit of production are as   A.            POWER AND FUEL CONSUMPTION     S. PARTICULARS Year ended Year ended   No. 31.03.2018 31.03.2017         1.           Electricity   a.  Purchased     Units (Nos.) 56943297 67969100     Total Amount (Rs.) 370124871 417899266     Rate/Unit (Rs.) 8.05 6.15     b.  Own Generation         i) Through Diesel/FO 130710         Quantity (Ltrs) 132915       Total Amount (Rs.) 6536472 6507449       Average Rate (Rs.) 53.16 48.96       Generation (Units) (Nos.) 309146 407584       Units per Litre of Diesel oil (Nos.) 7.56 3.06       Cost/Unit  (Rs.) 25.20 16.00     ii) Through Steam Turbine N.A.         Generator Units N.A.       Unit/LTR or Fuel N.A. N.A.       Oil/Gas Cost unit N.A. N.A.   2. Coal   N.A.       Quantity(Tones) N.A.     Total Cost N.A. N.A.     Average Rate N.A. N.A.     Total Unit Generated 309146 407584     Total Cost 6536472 6507449     Cost/Unit 25.20 16.00     3.           Furnace Oil (Excluding use on Generation of Electricity)   Quantity (Ltrs) 0.00 0.00 Total amount (Rs.) 0.00 0.00 Average Rate (Rs.) 0.00 0.00   4.           Others/Internal Generation Wood Quantity N.A. N.A. Total Cost N.A. N.A. Rate/Unit N.A. N.A.                 18                                                                                                                                                                           46th  Annual Report 2017-2018 ALPS INDUSTRIES LTD.     B.       CONSUMPTION PER UNIT OF PRODUCTION A. POWER AND FUEL CONSUMPTION S. Particulars Yarn Per Mt Made-ups Per 1000 Sqm Architectural Products   No. Per 1000 Sqm                   Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended       31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017                     1 ELECTRICITY (KWH) 2830.40 2790.88 35.50 36.67 730.00 720.00                     2 COAL N.A. N.A. 0.00 0.00 N.A. N.A.                     3 OTHERS N.A. N.A. 0.00 0.00 N.A. N.A.    

II       TECHNOLOGY ABSORPTION: Efforts made in technology absorption as per Form-B of the Annexure to the Rules.   A.  RESEARCH & DEVELOPMENT (R & D)     1.       Specific areas in which R&D carried out                                   2.      Benefits derived as a result of the above R&D         3.       Future Plan of Action     4.       Expenditure on R&D   a.   Capital   b.  Recurring   c.   Total   d.  Total R&D Expenditure as a Percentage of total turnover     :           Research & Development is carried out for development of new products and for improvement in the production process and quality of products. The Company has been able to pioneer the launch of new products that have been successful in the market due to its R&D efforts. There is progress on building enabling capabilities in the areas of facilities and infrastructure, technology organization, staffing & development, and the engagement of external knowledge networks to complement internal capabilities. The recruitment of professional staff and leadership is ongoing and programmed; staff managing processes have been defined and are being instituted. The R & D Department is well equipped with most modern sophisticated state of the art testing equipments. Company is looking forward to the possibility of re-engineering the products constructions and raw materials for optimum utilization of resources.   :           Quality testing of raw material, stores & consumables. Monitoring/Control of production process. Improved quality & higher production of cotton yarn, blended yarn like polyester cotton & mélange yarn. Development of new market segment & Value added product. Water conservation. Increase in productivity and Cost reduction.   :           Management is committed to strengthen R & D activities further to improve its competitiveness in times to come.   :            NIL   :            NIL   :                 NIL   :            NIL     46th  Annual Report 2017-2018                                                                                                                                                                          19 ALPS INDUSTRIES LTD.     B.      TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION   1. Efforts, in brief made towards technology : The Company is continuously making efforts for adaptation of     absorption, adaptation and innovation.   latest technology in all its units. The Company has also created           specific cells for studying and analyzing the existing processes           for further improvement, upgrading machines with           technologically advanced accessories and spares. The           company constantly gets feedback from customers and makes           efforts for improving the quality of products by conducting the           trials, special studies in manufacturing process etc. Company           have ventured into fire retardant fabrics suitable for hotel           industry, technical textiles, reinvented commodity products for           exports and domestic. During the period under  review           company, has embarked upon the journey of value addition in           yarns. This has been done under the strategy to insulate from           the commodity yarn.   2. Benefits  derived as a result of the above : Higher output and improved quality of product with reduction     efforts e.g. product improvement, cost   in the cost of production and other overheads. The company     reduction, product development, import   will project its image in the global market as a manufacturer of     substitution etc.     world class yarn and achieve an excellent share out of it.   3. In case of imported technology  (imported : Nil     during the last 5 years reckoned from the         beginning of the financial year), following         information may be furnished : N. A.     a. Technology imported     b. Year of import   : N. A.     c. Has technology been fully absorbed? : N. A.     d. If not fully absorbed, areas where this has : N. A.     not taken place, reasons thereof and future         plan of action.        

Company is targeting for a leading name in field of Home Textiles, by networking for direct supply to leading international customers, and introducing the new segment e- business on domestic and exports. To continue the maximum reach to valued consumers, the company used to participates in exhibitions, magazine etc. apart from other promotional efforts towards domestic market, promoting through various promotional materials and hopeful to have better profitability in coming years. US market has been developing well both on the residential fabric and contract business. Middle East has shown significant jump on the volumes. Economy seems to be doing well but furnishings buyers were very cautious. Your company has spread its wings in most of the markets now like US, UK, South East Asia, Australia, NZ and Middle East. Business sentiments were very soft in furnishings industry both for exports and domestic markets. Used Rs. 361.08 Lakh for the financial year ended March 31, 2018 (Rs. 422.30 Lakh for the financial ended as on March 31, 2017) Earned Rs. 12212.48 Lakh for the financial year ended March 31, 2018 (Rs. 13810.61 Lakh for the financial year ended as on March 31, 2017)

In compliance with the provisions of Section 134(5) of the Companies Act 2013, the Board confirms and submits the   Directors' Responsibility Statement:   •       In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;   •     The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;   •       The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;   •       The directors had prepared the annual accounts on a going concern basis; and   •       The directors, in the case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively which means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information;   •       The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.