AFFLUENCE

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Act read with Rule 8 of The Companies (Accounts) Rules, 2014, as amended from time to time, is appended as “Annexure – E” and which forms part of this report.     ANNEXURE E – TO THE DIRECTORS’ REPORT CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO   Information as required under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 are set out as under:   A.   Conservation of Energy:   a)   The steps taken or impact on conservation of energy: -      Process Optimisation to improve operational efficiency. -      Variable frequency drives to conserve electrical power. -      Installation of energy saving equipment /device. -      Energy audit and its implementation. -      Improve heat recovery through condensate recycling. -      Completed Solar based green energy project at Alwar, Neemuch and Saoner. Similar project is under execution at Mundra. -      Saving of electricity through installation of LED lighting.   b)   The steps taken by the company for utilizing alternate sources of energy: -          Through open access the company is utilising solar energy in certain plants. -          The company is also saving energy to upgrade the process by means of automation in the various sections. -          The company is also looking forward to use Wind based renewable energy in some of the plants.   c)   The capital investment on energy conservation equipment: -          Adopting new technology is an ongoing process for the company. During the year, electrical power was reduced by replacing conventional lights with LED lights and  installation of energy efficient equipments replacing the old ones.   -          The company has installed efficient heat recovery system, steam traps, load designer motors, VFDs and O2 analysers, 5 star electrical appliances & motion sensors in process to conserve energy.    

Technology Absorption:   (i)       The efforts made towards technology absorption:   Process upgradation with Technology Upgradation is important for development of an industry and to be ahead of the competitors as it results in Quality Improvement, improvement in efficiency as well as cost saving. The company has adapted the latest technology to the best possible extent to make the product more cost effective and to attain high levels of quality standard.   The benefits derived by the company for such adaptation have been evident in the reduction in costs, improvement in packaging, up-gradation in existing products and development of new products. It has thus helped the company in satisfying consumer needs synchronizing business requirement of introducing new products.   The company has commissioned the State of Art automated Bottle Case packing technology for bottle packing at Mundra and Kadi Plants and also to cut down the packing time and the costs to bring faster turnaround of packing lines.   The company has successfully commissioned state of the art Single stage PET Bottle packing of 1 ltr to 3 ltr Bottle from granule processing to the packed cartons at Mundra.   The company has set up the most modern State-of-the-Art Shuttle based Racking system for the storage of packed goods at Mangalore. It has also initiated setting up this system at other locations to improve the storage space and man-movement and minimise driving hazards during peak operations to bring ease in the faster turnaround at its warehouses.   In order to bring up productive use of waste, the company has adopted By-pass technology to utilize the by-products of Palm Fractions to convert into cattle feed to improve milk production   The company has commissioned Robotic Pick-N-Place technology for Pouch at Mundra and Haldia locations to minimise labour intervention and packing/handling costs.   The company has also commissioned Robotic Palletiser technology for efficient & dent free movement while handling of filled tins at Mundra.  The company has successfully accredited the highly stringent AIB audits conducted by the American Institute of Bakers under the requirements of the AIB International Consolidated Standards for Prerequisite and Food Safety Programs for 3 Lines – Packaging Section (Filling & Packaging) and Edible Oils across all the plants.   (i)     Benefits derived like product improvement, cost reduction, product development       or import substitution:               Improvement in process efficiency and substantial direct cost saving.     (iii) in case of imported technology (imported during the last three years reckoned from   the beginning of the financial year)   a)      the details of technology imported; b)      the year of import;                                                     N.A. c)      whether the technology been fully absorbed; d)      if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and   (iv)              The expenditure incurred on Research and Development:   R&D expenditure has not been accounted for separately.   Developing Green Belt using own effluent treated water.   Scarcity of water is a concerning reality and the environmental aspect in this regard has become a major priority that leads industries towards adoption of various methods that can reduce the generation of waste water or can reuse this. Your company is committed towards minimising the environmental impact of its operations through adoption of sustainable practices and continuous improvement in environmental performance. To achieve this objective, the company has installed “Zero Liquid Discharge” plants at Mundra and Vidisha loations.   Besides, the company has also been considering the importance of technical performance standardization by recording & analysis of technical performances of plants. The company has initiated the implementation of Manufacturing Execution System (MES), Process Information Management System (PIMS) & PLC – SAP Integration to take a real stride of recording & analysing real time data to understand the technical performances & achieve targeted operational excellence with authentic data management.   Apart from the above, the company has also initiated effective steps pertaining to Health, Safety and Environment which mainly include enablon- an online incident reporting system at all sites and controls for high risk areas like fall from height and strengthening of traffic safety management system by maintaining prescribed high standards in respective areas.    

Foreign Exchange Earnings and Outgo:   The particulars relating to foreign exchange earnings earned in terms of actual inflow during the year and the Foreign Exchange Outgo during the year under review are as under:                                                                                                                      (Rs. in Mn.) Particulars 2018-19 2017-18 Foreign exchange earned 31,660.06 29,228.26 Foreign exchange outgo  1,17,700.77 1,24,551.07      

DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to the requirements of Section 134(5) of the Act, the Board of Directors, to the best of their knowledge and ability, state the following:   a.      that in the preparation of the annual financial statements, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;   b.      that such accounting policies have been selected and applied consistently and judgement and estimates have been made that are reasonable and prudent so as to give a true and fair view  of the state of affairs of the company as at 31st March, 2019 and of the profit of the company for the year ended on that date;   c.      that proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;   d.      that the annual financial statements have been prepared on a going concern basis;   e.      that proper systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively.