POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL

www.pdexcil.org

22nd Annual Report 2016-17

PDEXCIL

Smt. Shailaja Ramaiyer, IAS, Director of Handlooms & Textiles and Apparel Export Parks, inaugurating Buyer Seller Meet (4th-7th, Jan, 2017) at Hyderabad by lighting lamp in presence of Shri Purushottam K. Vanga, Chairman, PDEXCIL.

Shri M.Duraisamy, then Chairman, addressing to PDEXCIL members, in the presence of Shri Purushottam K. Vanga, then Vice Chairman, and then Imm. Past Chairman, Shri Vishwanath Agarwal, Shri V.D. Choubey, Deputy Director, O/o of TXC, Shri Rohit Puri, then Exectuive Director and Shri. K P Mukundan, Deputy Consultant on the occasion of 21st Annual General Meeting held on 27.09.2016 at Mumbai.

Buyer Seller Meet was held on 5th & 6th Oct, 2016 at Park Regis Kris Kin Hotel, Dubai, which was inaugurated by HE Mrs. Neeta Bhushan, Charge De affaires, Embassy of India. Abu Dhabi in the august presence of Mr. M. Duraisamy, then Chairman, PDEXCIL

Dr. Kavita Gupta, IAS, Textile Commissioner, Office of the Textile Commissioner, Ministry of Textiles, Government of India, inaugurating IITExpo Bengaluru 2016 was held on 17th & 18th Nov. 2016 at Bengaluru by lighting lamp in presence of then Chairman, Shri M. Duraisamy, then Vice Chairman, Shri Purushottam K. Vanga, and then Imm. Past Chairman, Shri Vishwanath Agarwal.

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POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL(Set up by the Ministry of Textiles, Govt. of India)

GC-2, Ground Floor, Gundecha Onclave, Kherani Road, Saki Naka, Andheri (East), Mumbai – 400 072.

Phone : 022-28502050/2060 Fax : 022-28504146E-mail : pdexcilmumbai@gmail.com

Website : www.pdexcil.org

Date : 22nd August, 2017

To,

All the members of the PDEXCIL

Sub : 22nd ANNUAL GENERAL MEETING OF THE PDEXCIL

Sir/Madam,

It is hereby notified for the information of all the members of the Powerloom Development & Export Promotion Council (PDEXCIL) that the 22nd Annual General Meeting of the PDEXCIL shall be held as per the following schedule;

DATE : 15th of September, 2017 (Friday)

TIME : 11:30 am

VENUE : West End Hotel, 45 New Marine Lines, Mumbai 400 020

The notice of the 22nd Annual General Meeting of the PDEXCIL, the report of its Committee of Administration alongwith its audited Balance Sheet as on 31st of March, 2017 and the Income & Expenditure Account of the Council for the financial year that ended on that day, are sent herewith.

You are requested to kindly make it convenient to attend the said meeting.

Yours faithfully,

Sd/-(HRIDAY NARAYAN)

EXECUTIVE DIRECTOREncl : As above.

PDEXCIL

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POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL

COMMITTEE OF ADMINISTRATION

2016-2017

1. Shri M Duraisamy,Chairman (up to 22.11.2016)

15. Shri M.A. Ramasamy

2. Shri Purushottam K. Vanga, Vice-Chairman (up to 22.11.2016) &Chairman (from 23.11.2016)

16. Shri T. V. Maruthi

3 Shri Sunil Patil, Vice- Chairman (from 19.01.2017)

17. Shri K.C. Ganesan

4. Shri T.Karthikeyan, Convenor Export Promotion Panel.

18. Shri Ramashankar

5. Shri V.R.Agarwal, Convenor Development & Extension Panel.

19. Shri Gajanan Vishnu Hogade

6. Shri Surendra Nath Gupta 20. Shri Ka. Marappan, (up to 27.09.2016) 7. Shri Md. Ikram Ansari 21. Shri T. Raajsekar (from 27.09.2016)8. Shri Anil Surana 22. Shri Anwar Ahmed Abdul Aziz, Co-opted

member 9. Shri Bharatkumar M. Chhajer 23. Shri R. Arasu, Co-opted member

(up to 31.01.2017)10. Shri Dharmanna M. Sadul 24. Joint Secretary, (Powerlooms), MOT11. Shri Sushil Kejriwal 25. Textile Commissioner, Govt. of India12. Shri Uttam Jain 26. Managing Director, NABARD13. Shri Rajgopal Bhagirath Rathi 27 Managing Director, SIDBI14 Shri Devesh Patel

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NOTICENotice is hereby given that the 22nd Annual General Meeting of the Powerloom Development & Export Promotion Council [PDEXCIL] will be held at 11:30 am on 15th of September, 2017 at West End Hotel, 45 New Marine Lines, Mumbai-400 020 to transact the following business :-

1. To receive and adopt the Annual Report of the Committee of Administration [Committee] for the year 2016-2017, as required under article 34 of the Articles of Association of the Council;

2. To receive and adopt the audited Balance Sheet as on the 31st of March, 2017, and the Income and Expenditure Account of the Council for the financial year that ended on that day, together with the Committee’s report thereon, as required under article 41 of the Articles of Association of the Council;

Note: (Any member desirous of asking any question on the said accounts in that meeting is requested to give notice thereof, in writing, to the Executive Director of the Council, on or before 5:30 pm of 08th, September, 2017)

3. To elect a member to the Committee of Administration in place of Shri K C Ganesan who retires by rotation and is eligible for re-election thereto;

4. To elect a member to the Committee of Administration in place of Shri T Karthikeyan who retires by rotation and is eligible for re-election thereto;

5. To elect a member to the Committee of Administration in place of Shri T V Maruthi who retires by rotation and is eligible for re-election thereto;

6. To elect a member to the Committee of Administration in place of Shri M A Ramasamy who retires by rotation and is eligible for re-election thereto;

7. To elect a member to the Committee of Administration in place of Shri Ramashankar who retires by rotation and is eligible for re-election thereto;

8. To elect a member to the Committee of Administration in place of Shri BharatKumar M Chhajer retires by rotation and is eligible for re-election thereto;

9. To elect a member to the Committee of Administration in place of Shri Uttam Jain retires by rotation and is eligible for re-election thereto;

10. To appoint Auditors from the conclusion of the said meeting and until the conclusion of the next Annual General Meeting of the Council and to fix their remuneration, subject to the concurrence of the Government of India, as required under articles 55 and 56 of the Articles of Association of the Council;

Special Business:

1. To consider, discuss and if found in order to pass with or without modification the following resolution regarding the amendment of articles of association of PDEXCIL.

“Resolved that the Article of Association of Powerloom Development & Export Promotion Council (PDEXCIL) be and hereby amended as detailed in the annexure to this resolution and that the Chairman and Executive Directors, PDEXCIL be and hereby authorized to take all necessary action including signing the papers, letters and execute all necessary documents as per the provisions of law for the amendment of Article of Association”.

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2. To consider and pass appropriate resolution on members retired by rotation for filing the same with ROC.

Accordingly the following resolution is proposed by the COA.

“Resolved that the retirement of members, enlisted in the list annexed to this resolution, from the Director of the Company be and is hereby accepted with immediate effect” and that the Chairman and the Executive Director, PDEXCIL be and hereby authorized to take further necessary action for updating the list of COA members with ROC including that of the Directors (COA members ) if any joined subsequently”.

Note: The detailed note on the above two resolutions is attached separately.

\

By an order of the Committee of Administration

Sd/-[HRIDAY NARAYAN]

EXECUTIVE DIRECTOR

Registered Office:PDEXCIL, GC-2, Ground Floor,Gundecha Onclave, Kherani Road, Saki Naka, Andheri (East),Mumbai – 400 072.

Dated : 22nd August, 2017.

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THE ANNUAL REPORT OF THE POWERLOOM DEVELOPMENT & EXPORTPROMOTION COUNCIL (PDEXCIL) FOR THE FINANCIAL YEAR 2016-2017

The 21st Annual General Meeting of the PDEXCIL was held on the 27th of September, 2016 at West End Hotel, 45 New Marine Lines, Mumbai: 400 020.

2. The composition of the Committee of Administration of the PDEXCIL has thereafter been as follows:-

1. Shri Purushottam K. Vanga, Chairman (from 23.11.2016)

14 Shri Devesh Patel

2. Shri Sunil Patil,Vice-Chairman (from 19.01.2017)

15 Shri M.A. Ramasamy

3 Shri M Duraisamy (Chairman up to 22.11.2016) 16. Shri T. V. Maruthi4. Shri T.Karthikeyan 17. Shri K C Ganesan5. Shri V.R.Agarwal 18. Shri Ramashankar6. Shri Surendra Nath Gupta 19. Shri Gajanan Vishnu Hogade7. Shri Md. Ikram Ansari 20. Shri T Raajsekar 8. Shri Anil Surana 21. Shri Anwar Ahmed Abdul Aziz, Co-opted

member 9. Shri Bharatkumar M. Chhajer 22. Shri R.Arasu, Co-opted (up to 31.01.2017)10. Shri Dharmanna M. Sadul 23. Joint Secretary,

(Powerlooms), MOT11. Shri Sushil Kejriwal 24. Textile Commissioner,

Govt. of India12. Shri Uttam Jain 25. Managing Director, NABARD13. Shri Rajgopal Bhagirath Rathi 26 Managing Director, SIDBI

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3. During the year under review, the Committee of Administration (Committee) met 4 times on 09.04.2016, 30.07.2016, 17.11.2016 under the Chairmanship of Shri M. Duraisamy & 22.03.2017 under the Chairmanship of Shri Purushottam K. Vanga to consider and decide on matters concerning the development & export promotion of Powerloom products. The Committee was assisted in its task by the following statutory Panels/Committee:-a) Development & Extension Panelb) Export Promotion Panelc) Staff Committee

Shri M. Duraisamy, Chairman, PDEXCIL during his address on the occasion of the 21st Annual General Meeting of PDEXCIL held on 27.09.2016 briefed about the current situation of powerloom sector, which shows not very encouraging scenario.

Chairman also briefed about the major issues taken up for increasing the subsidy under TUFS to 30% as existed earlier, higher grant for MDA & MAI activities, to extend benefit under MEIS to whole A,B,C group of countries, interest subvention against export, coverage of 2nd hand shutteless looms under EPCG, certain issues connected with bank guarantee for clearing machinery under EPCG and such relevant issues. He viewed that at least partial success was achieved in various matters, such as under MEIS benefit @ 2 % extended to all A,B, C countries and introduction of interest subvention at 3% retrospectively etc. Govt. also issued recently press note dtd.22.09.2016 covering more items under MEIS and also corrected certain anomalies existed in the scheme. He also briefed about the current export scenario, powerloom sector which again shows some adverse situation.

However he expressed hope that under the able leadership of the new Minister of Textiles, Smt.Smriti Zubin Irani, who was very positive, during various interactive meetings and her assurance that changes and modifications wherever necessary in the policy will be taken up appropriately, gives a positive energy and a better future for the textile Industry, including powerloom sector.

Chairman also briefed about various interaction meetings with Secretary Textiles, Secretary Commerce, the Textile Commissioner and other senior officers of MOT, MOC and the office of the Textile Commissioner for taking up the issues faced by the Industry from time to time.

Chairman, informed that with the financial support through Office of the Textile Commissioner, Ministry of Textiles under Integrated scheme for Powerloom Sector Development, PDEXCIL had conducted 10 buyer seller meets at Nagercoil, Pondicherry, Malegaon, Vijaywada, Hyderabad, Lucknow, Madurai, Vishakhapatnam, Tirupati and Gangtok successfully. He also mentioned about PDEXCIL’s participation in Weave Tex Tech, VASTRA 2015, INTEX South Asia 2015, ITMACH Bhiwandi 2015 and Tex-Styles India 2016.

He acknowledged with gratitude for the support and guidance received from various authorities including Hon’ble Minister of Textiles, Smt. Smriti Zubin Irani, Smt. Rashmi Verma, Secretary (Textiles), Ms. Sunaina Tomar, Joint Secretary (Exports), Ministry of Textiles, Shri Madhukumar Reddy, Joint Secretary (Powerlooms), Ministry of Textiles, Hon’ble Textile Commissioner, Ministry of Textiles, GOI. Dr. Kavita Gupta, Shri S. Balaraju, Additional Textile Commissioner, O/o, Textile Commissioner, MOT, GOI. Ms. Rita Teaotia, Hon’ble Commerce Secretary. Shri Anup Wadhawan, Director General of DGFT, New Delhi, Shri D.K. Singh, Additional Director General of DGFT, New Delhi and Ms. Sonia Sethi, Additional Director General of Foreign Trade, DGFT, Mumbai and other present and past senior officers, who have supported for the growth of powerloom sector and PDEXCIL.

5. The General body [A.G.M.] of the Council had also unanimously passed resolutions adopting the annual report of the Committee, the Council’s audited balance-sheet and income & expenditure

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account for the financial year that ended on the 31st of March, 2016, appointing the auditors of the Council and noting the election of the following members to the Committee:-

A) Western Region: 1. Shri Vishwanath Ramprasad Agarwal

2. Shri Sushil Kejriwal

B) Southern Region:1. Shri M. Duraisamy

2. Shri T. Raajsekar

C) Nothern Region:1. Shri Anil Surana

D) Eastern Region:1. Shri Surendra Nath Gupta

E) Central Region: 1. Mohd. Ikram Ansari

6. From time to time PDEXCIL has represented powerloom related issues to higher authorities in order to promote and support the development and export of powerloom products with Policy interventions. Some of the important representations made are as follows:

• Certain issues faced by powerloom sector of Maharashtra.

• Various representations on GST related issues including exemption of Grey fabrics and processing job work from GST.

• Representation on implementation on Mega Cluster at Bhiwandi.

• Representation on Power Tariff and other related issues of Powerloom Sector.

• Representation on resolving issues in ATUFs, extending EPCG facilities to second hand machinery for textiles and other issues related to foreign trade policy 2015-20.

• Representation regarding increase of reward rates and covering of cotton fabrics and made-ups under MEIS of the current FTP 2015-20.

• Provisions for interest subvention for export.

• Representation on Handloom Reservation Act for reducing the number of products reserved in the act and clarity on specifications.

7. Developmental Programmes:A] Seminars/Meetings: The Chairman, Vice-Chairman and other COA members were attending various meetings,

convened by MOT, TXC office, MOC etc. and other forum and represented views on various issues related to powerloom sector which was heard/presented for remedial policy intervention for the overall development of powerloom sector. Some of such meetings are.

1. Shri Purushottam K. Vanga, Vice Chairman, PDEXCIL had attended, 25th Project Approval Committee Meeting (PAC) on 06.04.2016 at the O/o, Textile Commissioner, Mumbai.

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2. Shri T. Karthikeyan, Convenor Export Promotion Panel & COA member had attended meeting on 11.04.2016 under the Chairmanship of Smt.Pushpa Subrahmanyam, Addl.Secretary, Ministry of Textiles regarding 1st Meeting of Steering Committee for holding Mega Textile Fair in October, 2016 at India Expo Mart, Greater Noida. Also Shri T. Karthikeyan had attended meeting regarding finalizing of the agenda issues for the 1st India – Srilanka JWG meeting on 11.04.2016 at New Delhi.

3. Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended the meeting on test- launch of online system for evaluation and monitoring of MAI proposals organised by Ministry of Commerce on 12.04.2016 at Udyog Bhawan, New Delhi.

4. Shri M.Duraisamy, Chairman, PDEXCIL has attended the 237th Managing Committee Meeting of FIEO on 12.04.2016 at Bengaluru.

5. Shri K.P.Mukundan, Deputy Consultant, PDEXCIL alongwith Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended meeting on finalisation of the MDA proposal for the FY- 2016-17 held under the Chairmanship of Shri Ravi Capoor, Joint Secretary, Ministry of Commerce organised by Ministry of Commerce on 27.04.2016 at Room no. 47, Udyog Bhawan, New Delhi.

6. Shri Rohit Puri, Executive Director, PDEXCIL had attended meeting of the first Steering Committee of Tex-Styles India’ 2017 organised by India Trade Promotion Organisation (ITPO) on 27.04.2016 at ITPO, Mumbai.

7. Ms.Lavany Saxena, Assistant Director, PDEXCIL has attended meeting on discussion on Annual Action Plan under MDA Scheme for the FY- 2016-17 on 03.05.2016 organised by Ministry of Commerce at New Delhi.

8. Shri M.Duraisamy, Chairman, PDEXCIL has attended FIEO’s Golden Jubilee Celebration and Niryat Shree & Niryat Bandhu Awards function presided over by the Hon’ble President of India on 04.05.2016 at Vigyan Bhawan, New Delhi.

9. Shri Rohit Puri, Executive Director, PDEXCIL and Shri Purushottam K. Vanga, Vice Chairman, PDEXCIL had attended interactive meeting chaired by Secretary (Textiles) with Industry Associations and Textile Export Promotion Councils at Mumbai on 04.05.2016 at Hotel Trident.

10. A sub-committee meeting on RBSM –Bangalore and TEXVALLEY was held 20.05.2016 at TEXVALLEY, Erode. Shri M. Duraisamy, Chairman, PDEXCIL alongwith K.P.Mukundan, Deputy Consultant, PDEXCIL, Ms. Lavany Saxena, Assistant Director, PDEXCIL, Shri S. Sivaraju, Office-In-Charge, RO, PDEXCIL and other COA members, PDEXCIL has attended the said meeting.

11. Shri Rohit Puri, Executive Director, PDEXCIL alongwith Shri Ashish Patil, Assistant, PDEXCIL has attended 4th TAMC meeting notice under ATUFS dated 25.06.2016 at Office of the Textile Commissioner, Mumbai.

12. Shri M.Duraisamy, Chairman, PDEXCIL has attended the 4th Meeting of the Committee of CITI held on 30.06.2016 at ITC Maratha Andheri (E) Mumbai.

13. Shri M.Duraisamy, Chairman, PDEXCIL has attended the 10th TSC Board meeting on 30.06.16 at ITC Maratha Andheri (E) Mumbai.

14. Shri Rohit Puri, Executive Director, PDEXCIL has attended meeting at TEXPROCIL on 01.07.2016 regarding release of TEXPROCIL EY Study report”

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on “ Textile Industry as a vehicle of job creation for inclusive growth” and also an interactive session on importance of the Home Textile sector in creating employment at Mumbai.

15. Shri M.Duraisamy, Chairman, PDEXCIL alongwith Ms.Lavany Saxena, Assistant Director, PDEXCIL has attended a meeting with the Smt.Smriti Zubin Irani, Hon’ble Union Textile Minister, Ministry of Textiles, GOI at New Delhi on 11.07.2016

16. Shri M.Duraisamy, Chairman, PDEXCIL has attended meeting on Constitution of Project Monitoring & Evaluation for selection of consultancy agency to organise a survey for skill Gap Analysis in Textiles & Clothing Sector in India held at the Office of the Textile Commissioner, Mumbai on 12.07.2016.

17. The Office of the Joint Director General of Foreign Trade, Pune has conducted a Niryaat Bandhu Session at Grant Fortune, 1st Floor, Big Bazar, Sangli Road, Ichalkaranji on 15.07.2016 in Association with PDEXCIL and TJS Bank for the benefit of the Manufacturers and Exports from the Ichalkaranji region. Shri Vishwanath Agarwal, Immediate Past Chairman & COA Member, PDEXCIL had participated in the said seminar.

18. Shri. Purushottam K. Vanga, Vice Chairman, PDEXCIL had a meeting with Textile Commissioner, Smt. Kavita Gupta at Office of the Textile Commissioner, Mumbai on 20.07.2016. In the said meeting Shri Purushottam K. Vanga had briefed about the major issues of powerloom industry of India today and has also requested Textile Commissioner to consider his appeal for the betterment of powerloom sector of India.

19. A meeting of the Core Committee for estimation of the Economic Size for a Unit in each segment under A-TUFS was held on 29.07.2016 at the Conference Hall of the Office of the Textile Commissioner, Mumbai. Ms.Lavany Saxena, Assistant Director, PDEXCIL alongwith Mr. Ashish Patil, Assistant, PDEXCIL had attended the said meeting.

20. Shri M.Duraisamy, Chairman, PDEXCIL has attended the 238th Managing Committee Meeting of FIEO on 08.08.2016 at Varanasi.

21. Shri M.Duraisamy, Chairman, PDEXCIL had attended meeting on Powerloom Stakeholders on 22.08.2016 held under the Chairmanship of Hon’ble Minister of Textiles in the Deputy Speaker Hall of the Constitution Club of India, Delhi. The said meeting was held to discuss on the issues being faced by the Powerloom sector.

22. Shri M.Duraisamy, Chairman, PDEXCIL had attended meeting with Director General, Directorate General of Foreign Trade (DGFT) and Shri D.K.Singh IAS, Additional DGFT to discuss certain issues being faced by powerloom Fabric Exporters on 22.08.2016 at DGFT, New Delhi.

23. Shri M. Duraisamy, Chairman, PDEXCIL had attended meeting with Dr. Sonia Sethi, IAS, Additional DGFT in Mumbai on 30.08.2016, regarding certain anomalies in Merchandise exports from India scheme (MEIS).

24. Shri Purushottam K. Vanga, Vice Chairman, PDEXCIL had attended the 5th TAMC under ATUFS meeting on 08.09.2016 organised by the Office of the Textile Commissioner, Mumbai. Shri Purushottam K. Vanga had also had attended

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the powerloom stakeholders meeting on 08.09.2016 at the Office of the Textile Commissioner alongwith Shri Ikram Ansari and Shri Rajgopal Rathi, COA member, PDEXCIL.

25. SIMA and Birla Cellulose from Aditya Birla Group had organized an interactive session with master weavers on “Navigating the volatile landscape, in search of a credible anchor” on 23.09.2016. Shri K.C.Ganesan, COA member, PDEXCIL had attended the said meeting.

26. Shri M.Duraisamy, Chairman, PDEXCIL had attended the 1st meeting of Committee of CITI for the year 2016-17 on 28.09.2016 alongwith seminar on GST and 58th AGM of CITI at Hotel ITC Maratha, Sahar Road, Andheri (East), Mumbai.

27. Shri M. Duraisamy, Chairman, PDEXCIL had attended the joint delegation meeting led by Smt Vanathi Srinivasan, State General Secretary, BJP, Tamil Nadu with the Hon’ble Union Textile Minister, Smt.Smriti Zubin Irani on 29.09.2016 at New Delhi.

28. Shri M. Duraisamy, Chairman, PDEXCIL had attended 2nd AGM of Textile Skill Sector Council (TSC) on 29.09.2016 at the Registered Office of Textile Sector Skill Council, 6th Floor, Narain Manzil, 23 Barakhamba Road, New Delhi.

29. Chairman had attended the 2nd & 3rd Set of FIEO’s “Southern Region Export Awards” for the year 2013-14, 2014-15 & FIEO’s Golden Jubilee Celebrations on 08.10.2016 organised by FIEO at Hotel Le Royal Meridien, Guindy, Chennai.

30. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended subcommittee meeting for proposals submitted under MAI for 2017-18 on 19.10.2016 at Ministry of Commerce, New Delhi.

31. Mr. Pankesh Chipkar, Assistant, PDEXCIL had attended on meeting a pre-budget meeting convened under the Chairpersonship of Textile Commissioner on 19.10.2016 at the Office of the Textile Commissioner, Mumbai.

32. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended the Empowered Committee of MAI on 22.11.2016 at Udyog Bhawan, New Delhi under the Chairpersonship of Ms. Rita Teaotia, Commerce Secretary, DOC. The said meeting was held for discussion regarding additional proposals for the current year 2016-17 and also proposals for events in India/RBSM in 2017-18.

33. Shri M. Duraisamy, Immediate Past Chairman, PDEXCIL has attended meeting with the officials of MCX at SIMA on 25.11.2016 at SIMA, Coimbatore.

34. Shri Purushottam K. Vanga, Chairman, PDEXCIL has attended meeting on power tariff and other related issues in powerloom sector on 29.11.2016 under the Chairpersonship of Hon’ble Minister of Textiles Smt.Smriti Irani and Hon›ble MoS (Independent Charge), Ministry of Power, Govt. of India, Shri Piyush Goyal at New Delhi.

35. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended the Empowered Committee of MAI on 29.11.2016 at Udyog Bhawan, New Delhi under the Chairpersonship of Ms. Rita Teaotia, Commerce Secretary, DOC. The said meeting was held for discussion regarding additional proposals for the current year 2016-17 and also proposals for events in India/RBSM in 2017-18.

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36. Shri Purushottam K. Vanga, Chairman alongwith officials of Ministry of Textiles and Office of the Textile Commissioner, Ministry of Textiles, Govt. of India have actively arranged camps for facilitating opening of bank accounts of powerloom workers during the month of Dec, 2016. Total 11 camps were organised and PDEXCIL enrolled around 800 nos. of bank accounts.

37. Shri M. Duraisamy, Immediate Past Chairman, PDEXCIL had attended 239th meeting of the Managing Committee meeting of FIEO on 06.12.2016 at Guwahati, Assam.

38. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended a meeting on 13.12.2016 at New Delhi under the Chairmanship of Mr.Puneet Aggarwal, Joint Secretary regarding Heimtextil Fair 2017 scheduled on 10th -13th, Jan, 2016.

39. Shri Purushotttam K. Vanga, Chairman, PDEXCIL had attended meeting on the implication of GST on Textile Sector under the Chairpersonship of the Hon’ble Minister of Textile Mrs Smriti Zubin Irani on 17.12.2016 at New Delhi.

40. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended 27th PAC meeting on 22.12.2016 at the Conference hall of Office of the Textile Commissioner, Mumbai.

41. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended stakeholder meeting of Made-up sector convened by Hon’ble Minister of Textiles on 05.01.2017 at Ministry of Textiles, Udyog Bhavan, Delhi.

42. Ms. Lavany Saxena, Assistant Director, PDEXCIL has attended meeting regarding Colombia Tex Fair scheduled from 24th to 26th January, 2017 held under the Chairpersonship of Economic Adviser in her chamber at Udyog Bhawan, New Delhi on 05.01.2017.

43. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended meeting under the Chairpersonship of Secretary (Textiles), Ministry of Textiles on 24.01.2017 at Ministry of Textiles, New Delhi to discuss preparedness for Textiles India-2017 Conference.

44. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended meeting on 03.02.2017 under the Chairmanship of Shri Manoj K. Dwivedi, JS (EP-Textile Coordination), Dept. of Commerce, at Ministry of Commerce, Udyog Bhawan, New Delhi regarding textile promotion.

45. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended 6th meeting of TAMC under ATUFS on 09.02.2017 at Conference Hall of the office of the Textile Commissioner, Mumbai.

46. On behalf of PDEXCIL Shri Purushottam K. Vanga, Chairman, PDEXCIL has received Export Excellence Award from Amity University, Noida during 17th International Business Summit (INBUSH ERA) held on 8th-10th February 2017 at Amity University, Noida.

47. Shri. K.P. Mukundan, Deputy Consultant had attended a interaction meeting at Bhagalpur, Bihar on 18.02.2017 held under the Chairpersonship of Secretary (Textiles) where in JS (PL), MOT, OIC, ROTXC, Kolkata, seven officers from Silk Board, NTC, NHDC and various department heads of Govt. of Bihar attended. Various issues were discussed on development of Bhagalpur Textiles cluster. PDEXCIL was asked to organise a seminar cum workshop for priority export from this region.

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48. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended meeting on 27.02.2017 under the Chairmanship of Shri. Manoj K. Dwivedi, Joint Secretary (EP-Textiles Coordination) Division regarding review of the preparation/progress of MAI assisted upcoming events to be held from March 2017- June 2017 at Udyog Bhavan, Department of Commerce New Delhi.

49. Ms. Lavany Saxena, Assistant Director, PDEXCIL had attended meeting on 28.02.2017 held under the Chairpersonship of Ms. Anita Praveen, Joint Secretary, Ministry of Commerce, GoI regarding Trade Promotion Events in EU and LAC at Udyog Bhavan, Department of Commerce New Delhi.

50. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended the Sectoral Review Meeting held on 02.03.2017 with Apex Trade Bodies, EPCs and Commodity Boards for Mid-Term Policy at Ministry of Commerce & Industry, Directorate General of Foreign Trade, Udyog Bhawan, New Delhi.

51. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended meeting regarding formation of Sector-wise Committee for organizing “Textiles India - 2017” on 07.03.2017 at the Conference Hall of the Office of the Textile Commissioner, Mumbai.

52. Shri Bharat Chhajer, alongwith Shri Sushil Kejriwal, COA member, PDEXCIL had attended meeting regarding discussion on arrangement of “Textiles India 2017” on 10.03.2017 at Mahatma Mandir, Gandhi Nagar, Gujarat.

53. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended meeting of the Committee constituted by Ministry of Textiles for Cotton sector to enable convergence of efforts and coordination amongst all stakeholders for successful holding of mega event “Textiles India - 2017” on 14.03.2017 at the Conference Hall of the Office of the Textile Commissioner, Mumbai.

SEMINARS & WORKSHOPS :

B] Market Promotion activities :

(i) Domestic Events/Buyer Seller Meets:

With financial support through the Office of the Textile Commissioner; Ministry of Textiles, under Integrated scheme for Powerloom Sector Development, PDEXCIL have organised exhibition cum buyer seller meet at the following locations in the country during the period under report. The details are given below:

Sr. No. Name of the Place Date

1 Nagpur 21st -24th Jun 2016

2 Trichy 30th Jun- 03rd Jul 2016

3 Hyderabad 04th – 07th Jan 2017

4 Madurai 10th -13th Jan 2017

5 Delhi 21st -24th Feb 2017

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ii) Activities under MAI:

1. IITExpo-Bengaluru 2016 organised by PDEXCIL during 17-18th, Nov, 2016

PDEXCIL has organized Reverse Buyer Seller Meet (RBSM) at Bangalore during 17-18th, Nov- 2016 at The Hotel Lalit Ashok, Bengaluru. The said event was inaugurated by lighting traditional lamp in the hands of Dr. Kavita Gupta, IAS, Textile Commissioner, Govt. of India and other dignatories including Shri R.Girish, IAS, Commissioner for Textile Development & Director of Handloom & Textiles, Govt. of Karnataka in the presence of then Chairman Shri M.Duraisamy, then Vice Chairman, Shri Purushottam K. Vanga, Shri. Ashok Hazra, Executive Director, PDEXCIL, along with other dignatories. There were a total of 88 exhibitors who had showcased their products and total of 51 overseas buyers visited the Fair.

Shri, Rudrappa Manappa Lamani, Hon’ble Minister of Textiles & Muzrai, Govt. of Karnataka, who consented to inaugurate the Fair, could not make it due to his urgent official engagement. However the Hon’ble. Minister visited the fair on 18.11.16 and spent considerable time interacting with participants.

There was huge media/press coverage during the event and wide publicity was given in the local newspaper and electronic media, befitting for a major international event. During the event a grand fashion show cum cultural show was also organized in a very grand manner.

There was good business generation and overall the event was a grand success.

2. Intertextile Shanghai, China, Apparel Fabrics & Home Textiles 2017.

Powerloom Development & Export Promotion Council (PDEXCIL) has organised a group participation in Intertextile Shanghai, China, Apparel Fabrics & Home Textiles 2017, held at National Exhibition and Convention Center (Shanghai), from 15.03.2017 to 17.03.2017. H.E.Prakash Gupta, Consul General, Consulate General of India, Shanghai, visited PDEXCIL Pavilion. Ms. Lavany Saxena, Assistant Director,PDEXCIL & Shri. K.P. Mukundan, Deputy Consultant, PDEXCIL coordinated the participation and managed PDEXCIL pavilion. Total 20 exhibitors participated through PDEXCIL who exhibited various textile products. Overall the event was great success.

iii) Foreign Exhibitions under MDA:

1. Buyer Seller Meet held at Dubai from 5-6th, Oct, 2016.

Powerloom Development & Export Promotion Council (PDEXCIL) had organised Buyer Seller Meet at Dubai under MDA (Marketing Development Assistance Scheme) assistance in code activity with pre-event networking meeting on 04.10.2016 at Park Regis Kris Hotel, Adelate-Darwin-Perth Hall, Dubai during 5-6th, Oct, 2016 with total of 12 member participants.

The Buyer Seller meet was inaugurated by Ms.Neeta Bhushan, Chargé

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D’affaires, Embassy of India, Abu Dhabi in presence of Shri. M. Duraisamy, Chairman, PDEXCIL, Shri.Sudesh Aggarwal, Chairman, ITEC m.e., Mrs.Sripriya Kumaria, Director General, ITEC m.e., Ms. Ivy Majumder Director - Business Development ITEC m.e.,Shri.V.P.Subramaniam, Managing Director and M/s Jagajothi Exports, Erode. Around 54 buyers visited the BSM & interacted with exhibitors.

2. Heimtextil Frankfurt 2017 held at Frankfurt, Germany from 10-13th, Jan, 2017

Powerloom Development & Export Promotion Council PDEXCIL has organised group participation in Heimtextil Frankfurt 2017 held in Frankfurt, Germany during 10th January to 13th January under MDA (Marketing Development Assistance Scheme). 10 members exhibited their products in this world largest trade show for home textile and commercially used textile. As per the feedback from these members the Fair was generally satisfactory and could make good contact with potential buyers. A high level delegation lead by Shri Punit Agarwal, Joint Secretary, MOT, GOI visited the Fair with the main objective of promotion of Indian Textiles and with common brand, “Incredible Textiles of India” and to explore investment opportunity towards “Make in India”. During the occasion a net working meeting was also arranged in association with all participating EPCs wherein the Joint Secretary, other delegation members and also the Consulate General of India interacted with foreign buyers officials, press and media etc.

3. Exhibition cum Buyer Seller Meet held at Colombo, Srilanka from 27-28th March, 2017.

Powerloom Development & Export Promotion Council (PDEXCIL) has organised a Exhibition cum Buyer Seller Meet at Colombo, Srilanka held at Galadhari Hotel, from 27-28th March, 2017. Mrs. Chandani Wijewardana, Secretary Development Strategies and International Trade, Govt. of Srilanka was the Chief Guest and inaugurated the event in the presence Mrs. Suja K. Menon, First Secretary and Shri Rajeev Arora, Second Secretary of the Indian Embassy. Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL & Shri. K.P. Mukundan, Deputy Consultant, PDEXCIL coordinated the event at Colombo. Total 12 exhibitors had participated in the said event. Overall the event was great success.

iv) PDEXCIL was a supporting organization for 10th edition of India International Textile Machinery Exhibition 2016 organized by India ITME Society, which is held on 3-8 December, 2016 at Bombay Exhibition Centre, Mumbai.

v) PDEXCIL has conducted a seminar on “How to Be a Successful Exporter” in Ichalkaranji, Kolhapur, Maharashtra on 11.06.2016 supported by Export Credit Guarantee Corporation of India Limited (ECGC). Around 200 persons had attended the said seminar.

C] Other Major Activities:

(i) Activities under ISDS: The status of ISDS programme during the year under report is given below:

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ISDS Course wise Status from Apr – 16 to Mar – 17

Sr. No

Course Name Enrolled Trained Training in Progress

Drop Out

Placed To be Placed

1 Powerloom Weaver Operator

90 48 Nil 42 48 Nil

2 Warping Machine Operator

10 4 Nil 6 4 Nil

3 Sizing Machine Operator

24 12 Nil 12 12 Nil

4 Sewing Machine Operator

1146 962 Nil 184 819 143

5 Garment Checker 60 55 Nil 5 55 Nil6 Fabric Checker 70 61 Nil 9 61 Nil

Total 1400 1142 Nil 258 999 143

D] Group Insurance Scheme: PDEXCIL could enroll a total of 223 powerloom workers engaged in weaving and its allied activities during the financial year 2016-2017.

E] Exposure Visits: PDEXCIL organized exposure visit for weavers from one cluster to another as per the Integrated Scheme for Powerloom Sector Development. PDEXCIL had facilitated exposure visits covering 977 weavers during the financial year 2016-17 under report.

8. Issues and Action taken by PDEXCIL:

i. Court Cases :

a) The case filed by Mr.Janardhan Naik an ex-temporary peon before the Central Industrial cum Labour Court at Sion is still pending as the matter is adjourned by the court from time to time. The case is being appropriately defended in the interest of PDEXCIL. The last hearing was held on 04.07.2017 and is still pending.

b) A complaint filed under section 162 of the Companies Act 1956 before the court of the Hon’ble Additional Chief Metropolitian Magistrate by the Regional Deputy Director, Dept.of Companies Affairs against PDEXCIL and its COA members is still pending. The matter was regarding non filing of annual report for the year 2010-11 on or before 30.11.2011, as required under section 159 (1) of the Companies Act. The said balance sheet has been subsequently filed with penalty. However further hearing in the matter is yet to be taken place.

ii. Other issues :

a) As reported in the annual report for the year ended on 31.03.2015, show cause notices were issued by the Regional Director, Dept of Company Affairs for the year 2011-12 and 2012-13. The council has taken appropriate action to rectify these inadvertent lapses in consultation with professional Company Secretary subsequently. PDEXCIL has also taken up these issues with higher officers in the Ministry of Corporate Affairs. However there is no progress in the matter of show cause notice during the year under report.

b) PDEXCIL has received a demand notice for tax on interest earned from

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investments for the assessment year 2013-14 and 2014-15. The PDEXCIL has filed appeal against the decision of the assessing officer of IT dept before Competent Authority. The total amount so demanded is `47,51,090/- for AY. 2013-14 and `26,63,400/- for AY. 2014-15. PDEXCIL has paid `8,74,103/- Lakh & `4,00,000/- Lakh (15% of total demand) respectively, pending final disposal of our appeal.

In consultation with Chartered Accountant, appeal has been filed by PDEXCIL before the Income Tax Appellate Tribunal (ITAT) for the AY 2011-12 for its consideration. The said appeal hearing fixed on 01/05/2017, but adjourned for next day i.e. 02/05/2017. The said hearing attend by consulting CA alongwith Shri K.P.Mukundan, Deputy Consultant. The final decision in the said matter is expected shortly.

PDEXCIL is pursuing the matter through our statutory auditors and is hopeful of a favorable decision and therefore not anticipating any significant liability and hence no provision has been made.

Clarification of the COA on the qualified opinion of the auditors.

a. Regarding non provision of doubtful trade receivables amounting to `15.67 Lakh, the committee is still hopeful of recovery of the same. However the same will be reassessed after further attempt to recover the same and will take appropriate decision and report in the next report.

b. Regarding non provision of doubtful loan and advances amounting to `2.5 Lakh, the PDEXCIL had filed complaint with the local police station for fraudulent encashment of `3 Lakh from the PDEXCIL account. After recovering of `50,000/-, the balance amount of `2.5Lakh is shown in the balance sheet. Since the police is investigating the matter, no provision has been made in our accounts.

c. Regarding non provision of retirement benefits i.e. gratuity and leave encashment appropriate action is being taken for introducing gratuity scheme through the LIC of India. The detailed proposal was sent to the Chairman Staff Committee, i.e. The Textile Commissioner. Regarding leave encashment, the same is applicable on resignation or retirement of service. This is being paid and accounted for in the year in which it is paid.

9. Publicity & Awareness:

a) PDEXCIL has received good publicity through press and media during various domestic buyer seller meets and other events organized by PDEXCIL. Interviews of Chairman, COA members and officers were also appeared in various press/media.

b) Newsletter: PDEXCIL has re-started quarterly newsletter with more inputs which gives a total insight on the powerloom industry and it also covers various events being organised/participated by PDEXCIL, various statistics on export data, educational context and such related information useful for small and new exporters/entrepreneurs.

c) Weekly News Bulletin: PDEXCIL is also sending weekly e-news bulletin to members covering international trade news, market trend, various fair/exhibitions and similar useful information on regular basis.

10. Membership:

The membership of the Council stood at 2075 as on 31.03.2017 against 1909 members as at the end of previous financial year 2015-16.

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Independent Auditors’ ReportTo the MembersPowerloom Development & Export Promotion Council

I. Report on the Financial Statements

We have audited the attached financial statements of Powerloom Development & Export Promotion Council (hereinafter referred to as the Company / the Council), comprising of the Balance Sheet as at 31st March 2017, the Statement of Income and Expenditure and the Cash Flow Statement for the year then ended, along with the Significant Accounting Policies and other explanatory information forming an integral part thereof.

II. Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in Section 133 of the Companies Act, 2013 (hereinafter referred to as the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014 and in accordance with the accounting principles generally accepted in India. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

III. Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company’s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion.

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IV. Opinion

(i) Basis for Qualified Opinion

(a) Refer Note No. 21 regarding non-provision of employee benefits viz., Gratuity and Leave Encashment, since the Company has sought the approval for Group Gratuity Scheme, decision for which is still pending. Surplus for the year was overstated with a similar understatement of Long- term Provisions. Amount unascertainable.

(b) Refer Note No. 34 regarding non-provision of doubtful Advances representing embezzlement amounting to `2.5 Lacs by an ex-employee, since the management is hopeful of its full recovery. As a consequence of the above, Surplus for the year was overstated by `2.5 Lacs with an overstatement by the same extent in Short Term Loans and Advances ; and

(c) Refer Note No. 37 regarding non-provision towards doubtful Trade Receivables amounting to `15.67 lacs, since the management is hopeful of their full recovery. Consequently, Surplus for the year was overstated by `15.67 Lacs with a similar overstatement by the same extent in Trade Receivables and understatement of provisions.

(ii) Emphasis of Matter

During the year, the Council has changed its accounting policy in respect of receipt of Grant for the purpose of organizing events from receipt basis to accrual basis, to be in tune with the Generally accepted accounting practices in India. Monetary impact as a consequence of the same on the Other Current Assets and on the Income for the year amount to `47.58 Lacs (Refer Note No, 12 of the Financial statements).

In our opinion and to the best of our information and according to the explanations given to us, subject to the effects of the matters described in (a) to (c) in Basis for Qualified Opinion paragraph IV (i) above, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2017;

(b) In the case of the Statement of Income and Expenditure, of the Surplus of the Company for the year ended on that date; and

(c) In the case of the Cash flow statement, of the Cash flow of the Company for the year ended on that date.

V. Report on Other Legal and Regulatory Requirements

1. The requirements of the Companies (Auditor’s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, are not applicable to the Company during the year under review.

2. Further, as per the requirements of Section 143(3) of the Act, we report as follows:

(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

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(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

(c) The Balance Sheet, the Statement of Income and Expenditure and the Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company;

(d) In our opinion, the Balance Sheet, Statement of Income and Expenditure and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) On the basis of written representations received from the respective directors as on 31st March 2017 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2017 from being appointed as a director in terms of sub-section (2) of Section 164 of the Act;

(f) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in “Annexure 1”.

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;

i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note No 20;

ii) The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company; and

iv) The Company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December 2016 and these are in accordance with the books of accounts maintained by the Company (Refer Note No.36)

For S M M P & AssociatesChartered Accountants

Firm Registration No. 120438 WChintan Shah

PartnerMumbai, dated:10th July,2017 Membership No.166729

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Annexure 1 to the independent Auditor’s Report of even date on the financial statement of the Powerloom Development & Export Promotion Council

Report on the Internal Financial Controls under Section 143(3)(i) of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Powerloom Development & Export Promotion Council (“the Company”) as of 31st March, 2017 in conjunction withour audit of the financial statements of the Company comprising of the Balance Sheet as at March 31st, 2017, the Statement of Income and Expenditure and the Cash Flow Statement for the period then ended.

Management’s Responsibility for Internal Financial Controls :

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (the ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively 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, as required under the Companies Act, 2013.

Auditors’ Responsibility :

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting and the Standards on Auditing, issued by the ICAI deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those standards and the Guidance Note that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Annexure 1 to the independent Auditor’s Report of even date on the financial statement of the Powerloom Development & Export Promotion Council

Meaning of Internal Financial Controls over Financial Reporting :

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for

21

external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting :

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion :

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31st, 2017. However, it needs to be further strengthened based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S M M P & Associates.Chartered Accountants

Firm Registration No.120438 W

Chintan ShahPartner

Membership No. 166729Mumbai, dated 10th July 2017

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POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILBalance Sheet as at 31st March, 2017

Amount (`)Particulars Notes As at

31st March 2017As at

31st March 2016EQUITY AND LIABILITIESShareholders’ FundsCorpus Fund 2 47,671,900 46,596,900Reserves and Surplus 3 97,236,556 97,969,054

Non Current LiabilitiesLong Term Liabilities 4 476,615 2,349,507

Current LiabilitiesShort term Borrowings 5 5,290,534 -Other Current Liabilities 6 12,471,793 12,131,308Short term Provisions 7 496,140 2,614,340

Total 163,643,538 161,661,108

ASSETSNon-Current AssetsFixed Assets-Tangible Assets 8 29,129,285 31,092,545Non-Current Investments 9 67,500,000 67,500,000Long Term Loans and Advances 10 15,442,163 12,606,035Other Non-current Assets 11 18,349,670 35,819,670

Current AssetsOther Current Assets 12 9,292,012 3,772,329Cash and Bank balances 13 22,541,685 8,350,691Short Term Loans and Advances 14 1,388,723 2,519,839

Total 163,643,538 161,661,108Significant Accounting Policies-Note 1

Notes form an integral part of these financial statements.As per our attached Report of even dateFor S M M P & AssociatesChartered Accountants Purushottam K. Vanga

(Chairman)Chintan Shah Sunil PatilPartner (Vice-Chairman)Membership No.166729 M. Duraisamy

(COA-Member)Hriday Narayan(Executive Director)

Place: Mumbai Place: MumbaiDate:10/07/2017 Date:10/07/2017

23

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILStatement of Income and Expenditure for the year ended 31st March, 2017

Amount (`)

Particulars Notes Year ended 31st March 2017

Year ended 31st March 2016

INCOME

Revenue from Operations 15 37,649,586 22,739,678

Other Income 16 10,860,166 10,354,726

Total Revenue 48,509,752 33,094,404

EXPENDITURE

Employee Benefits Expense 17 6,175,206 6,284,656

Finance Costs 18 44,241 144,297

Depreciation and Amortisation 8 504,085 665,272

Other Expenses 19 40,834,206 16,093,965

Total Expenditure 47,557,738 23,188,190

Excess of Income over Expenditure /(Deficit) before

Prior period items 952,014 9,906,214

Prior Period Items - 160,000Excess of Income over Expenditure / (Deficit) after Prior period items 952,014 10,066,214

Notes form an integral part of these financial statements.

As per our attached Report of even date

For S M M P & Associates

Chartered Accountants Purushottam K. Vanga

(Chairman)

Chintan Shah Sunil Patil

Partner (Vice-Chairman)

Membership No.166729 M. Duraisamy

(COA-Member)

Hriday Narayan

(Executive Director)

Place: Mumbai Place: Mumbai

Date:10/07/2017 Date:10/07/2017

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POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILCash flow statement for the year ended 31st March 2017

Amount (`)

Particulars For the Year Ended 31st March 2017

For the Year Ended 31st March 2016

CASH FLOW FROM OPERATING ACTIVITIESExcess of Income over Expenditure 952,014 10,066,214 Adjustments for :-Interest on bank O/D 11,694 126,345 Interest Income (8,304,629) (8,523,013)Sundry Balances written off/written back 1,279,273 - Depreciation / Amortization 504,085 665,272

(6,509,577) (7,731,396)Adjustments for Working Capital Changes :-(Increase) / Decrease in Trade Receivables 340,706 (Increase) / Decrease in Long Term Loan & Advances (1,017,358)(Increase) / Decrease in Other Current Assets (5,519,683) - Increase / (Decrease) in Trade Payables 852,751 Increase / (Decrease) in Short Term Provisions (2,118,200) (1,314,023)Increase / (Decrease) in Long Term Provisions - (2,000,000)Increase / (Decrease) in Other Current Liabilities 340,485 (3,792,517)Increase / (Decrerase) in Short- term Loans & Advances 1,131,116 4,352,184 Increse / (Decrease in Short-term Borrowings 5,290,534 -

(875,748) (2,578,257)Less :- Taxes paid - - Net Cash generated / (used) in Operating Activities (A) (6,433,311) (243,439)CASH FLOW FROM INVESTING ACTIVITIESlong term liabilities (1,872,892) - Purchase of Fixed Assets (225,337) (1,718,230)Fixed deposit Matured - 5,500,000 Interest received 8,304,629 8,523,013 (Purchase) / Sale of Investments (1,530,000) (6,700,000)Sale of Fixed Assets - 13,000 Net Cash generated / (used) in Investing Activities (B) 4,676,400 5,617,783 CASH FLOW FROM FINANCING ACTIVITIESAdvance given (2,836,128) (1,933,388)Interest received - Interest on Overdraft facility (11,694) (126,345)Sundry balances written off/written back (1,279,273) - Entrance Fees received 1,075,000 1,305,000 Net Cash generated / (used) in Financing Activities (C) (3,052,095) (754,733)Net Increase / (Decrease) In Cash & Cash Equivalents (A +B +C) (4,809,006) 4,619,612 Cash & Cash Equivalents - Opening Balance 8,350,691 3,731,077 Cash & Cash Equivalents - Closing Balance 3,541,686 8,350,691 The notes form an integral part of these financial statements. For Powerloom development & export promotion councilAs per our report of even date attached Purushottam K. VangaFor S M M P & Associates (Chairman)Chartered Accountants Sunil Patil

(Vice-Chairman)Chintan Shah M. DuraisamyPartner (COA-Member)Membership No.166729 Hriday Narayan

(Executive Director)

Place: Mumbai Place: MumbaiDate:10/07/2017 Date:10/07/2017

25

POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCILNOTES TO THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31.03.2017

A. Significant Accounting Policies and Notes on Accounts:

Note 1. Significant Accounting Policies

a) Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (i) (a) of Section 642 and the relevant provisions of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013, issued by the Ministry of Corporate Affairs, in respect of Section 133 of the Companies Act, 2013.

b) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

c) Fixed Assets and Depreciation

i) Fixed assets are stated at cost of acquisition /construction including any cost attributable to bringing the assets to their working condition, less accumulated depreciation.

ii) The Council provides depreciation on Written Down Value Method in respect of assets based on their useful lives and in the manner set out in the Schedule II to the Companies Act, 2013.

d) Recognition of income etc.

Income is accounted for on accrual basis, including recognition of Grant-in-Aid (refer Note No. 25.

e) Service Tax :

Service Tax on input service is accounted for at the time of availing the service by reducing the same from the respective cost of service, wherever applicable.

f) Foreign Currency Transactions

Transactions in foreign currency are translated at the rate of exchange prevailing on the date of transaction. Monetary assets and liabilities as at year end are translated at the rate of exchange prevailing on the date of closing the accounts and resulting losses or gains arising out of exchange fluctuations are recognized in the Income and Expenditure statement.

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g) Investments

Investments are considered long term in nature and carried at cost. Diminution in value of investments other than temporary in nature, is provided for. Dividend is accounted for as and when received.

h) Retirement Benefits

The Council’s contribution to the Provident Fund is charged to revenue every year. No Provision for Gratuity and Leave encashment has been made in the council’s books and the same is accounted on cash basis. Bonus is accounted for as and when paid. Payment of Bonus is approved as per the discretion of the Staff Committee as envisaged by the Staff Recruitment and Service Rules of the Council.

i) Accounting for Taxes on Income

The Council is registered under Section 8 of the Companies Act, 2013 and its income is exempt under Section 11 of the Income-tax Act, 1961. Hence, no provision for taxation is made in the accounts.

j) Impairment of Assets

The carrying amount of the Group’s assets is reviewed at each Balance Sheet date. If any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

k) Accounting for Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized in terms of Accounting Standard 29 – Provisions, Contingent Liability and Contingent Assets (AS-29) notified by the Companies (Accounting Standard) Rules 2006, where there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Council, or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

27

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL

Notes Forming Part of the Financial Statements as at 31.03.2017 As at

31.03.2017 Amount (`)

As at 31.03.2016 Amount (`)

Note 2 - Corpus Fund

As per last Balance Sheet 46,596,900 45,291,900

Add : Entrance Fees Received during the year 1,075,000 1,305,000

Total 47,671,900 46,596,900

Note 3 - Reserves And Surplus

(a) Building Fund

As per last Balance Sheet 29,248,477 31,000,210

Less: Depreciation for the year 1,684,513 1,751,733

Closing Balance (a) 27,563,964 29,248,477

(b) Development and Export Promotion Fund

As per last Balance Sheet 5,660,622 5,660,622

Add : Transferred during the year - 6,900,000

Less: Spent during the year - (6,900,000)

Closing Balance (b) 5,660,622 5,660,622

(c) Statement of Income and Expenditure

Balance as per last Balance Sheet 63,059,956 52,993,742

Add: Surplus for the year 952,014 10,066,214

Closing Balance (c ) 64,011,970 63,059,956

(a+b+c) 97,236,556 97,969,055

Note 4 - Long Term Liabilities

Advance towards Integrated Skill Development Scheme 476,615 2,349,507

Total 476,615 2,349,507

Note 5 - Short term Borrowings Overdraft facility with State Bank of India (Secured against Fixed Deposit Receipt of the Council amounting `67,00,000/- pledged with the bank) 5,290,534 -

Total 5,290,534 -

28

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31.03.2017

As at 31.03.2017 Amount (`)

As at 31.03.2016 Amount (`)

Note 6 - Other Current Liabilities Deposits 1,062,000 1,062,000 Statutory Dues Payable 336,614 802,934 Excess Entrance/ Membership/Participation Fees 8,501 246,585 Advance for Membership/Buyer Seller Meet 69,998 39,598 Advances and Grants From TXC 651,685 763,578 Advance for Participaton Fees 1,042,854 1,042,854 Other Liabilities 20,180 182,324 Grant payable 1,377,477 - Other payables 7,317,045 7,585,604 Outstanding Liability 585,439 405,831

Total 12,471,793 12,131,308

Note 7 - Short term Provisions Provision for expenses 496,140 2,614,340

Total 496,140 2,614,340

29

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30

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31.03.2017

As at 31.03.2017 Amount (`)

As at 31.03.2016 Amount (`)

Note 9 - Non-Current Investments (Non-Trade,Unquoted, At cost) In securities / Bonds etc. In Government Bonds: 67,500,000 67,500,000 67,500 (Previous Year 67,500) 8% Savings (Taxable) Bonds, 2003 of `1000 each of Government of India

Total 67,500,000 67,500,000

Note 10 - Long Term Loans and Advances (Unsecured, considered good, unless otherwise stated)Security Deposits 2,991,134 2,196,134 Other Advances 3,440,544 2,503,137 Tax Deducted at Source 9,010,485 7,906,764 Other Advances (considered doubtful) - 560,251 Less : Provision for Doubtful Advances - (560,251)

Total 15,442,163 12,606,035

Note 11 - Other Non-current Assets (Unsecured, considered good)Other Bank Balances - Fixed Deposits with Banks 18,349,670 35,819,670 With maturity of more than 12 months)

Total 18,349,670 35,819,670

Note 12 -Other Current Assets (Unsecured, considered good)Participation fees receivable 1,937,178 1,790,783 Interest Accrued on Govt.Bonds & Fixed Deposits 2,557,227 1,944,748 Prepaid Expenses 39,265 36,798 Grant Receivable 4,758,342 -

Total 9,292,012 3,772,329

31

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31.03.2017

As at 31.03.2017 Amount (`)

As at 31.03.2016 Amount (`)

Note 13 - Cash and Bank balances Cash in Hand 16,134 32,999 Balance with BanksIn Current accounts 3,525,551 8,317,692 In Fixed deposit accounts(maturity within 12 months) 19,000,000 -

Total 22,541,685 8,350,691

Note 14 - Short Term Loans and Advances (Unsecured, considered good) Advance against Grant - 1,551,246 Input Service Tax receivable 1,388,723 968,593

Total 1,388,723 2,519,839

Note 15 - Income From Operations Membership and Subscription 3,622,376 3,375,973 Grant for Intergrated Powerloom Development Scheme 4,848,315 8,566,690 Market Access Intiative (MAI) Grants 10,758,342 4,808,617 Market Development Assistance (MDA) Grants 5,845,246 - Participation Fees Outside India 5,813,820 - With in India 3,150,569 1,587,328 Grant for Exposure Visits 3,504,653 4,369,072 Advertisement income 78,000 25000Other Misc.Receipt 28,265 6,998

Total 37,649,586 22,739,678

32

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements for the year ended 31st March 2017

Year ended 31.03.17

Year ended 31.03.16

(Amount `) (Amount `) Note 16 - Other IncomeInterest Received 8,304,629 8,523,013 Office Rent 2,256,750 1,740,500 Miscellaneous Receipts 178,787 91,213 Other Rent 120,000 -

Total 10,860,166 10,354,726

Note 17 - Employee Benefit Expenses Salaries, Wages and Allowances (including Bonus) 5,495,301 5,604,259 Employer’s contribution to Provident Fund and Administrative Expenses 608,466 625,636

Staff Welfare Expenses 71,439 54,761 Total 6,175,206 6,284,656

Note 18- Finance Cost Bank Charges 32,547 17,952 Interest on Overdraft Facility with Bank 11,694 126,345

Total 44,241 144,297

33

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes forming part of financial statement for the year ended 31st March 2017

Year ended 31.03.17

Year ended 31.03.16

(Amount `) (Amount `) Note 19 - Other Expenses Buyer Seller Meet Expenses (BSM) 30,477,444 1,611,953Exposure Visit expenses 2,995,395 2,825,287Travelling Expenses 377,196 439,894Conveyance 42,911 29,435Electricity Charges 255,760 292,316Hospitality Charges 46,925 32,847General Meeting Expenses 200,311 289,789Meeting Expenses 866,273 400,056Legal and Professional Fees 217,582 102,007Consultancy Charges 760,127 452,914Auditors’ Remuneration:Audit Fees 40,000 35,000Certification Charges 1,000Repairs and Maintenance - Others 133,244 206,350Telephone Expenses 122,308 145,806Books and Periodicals 3,196 8,908Printing and Stationery 195,496 131,711Vehicle Expenses 107,458 74,380Postage and Courier 79,719 21,848Regional Office Expenses 163,613 128,661Rent, Rates and Taxes 105,262 99,600Miscellaneous Expenses 78,897 246,153Other Membership Fees 7,323 9,213Service Centre Expenses - 11,365Prior Period Expenses 72,515 72,713Advertisement Charges 12,797 -House Keeping Charges 133,300 135,000Insurance Expenses 9,523 10,530Other Interest 14,342 82,410

34

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes forming part of financial statement for the year ended 31st March 2017

Year ended 31.03.17

Year ended 31.03.16

(Amount `) (Amount `) Integrated Skill Development Scheme (ISDS) Expenses - 55,660Seminar Expenses 88,978 -Computer Data Processing 1,615 74,799Election Expenses 19,499 25,574Publication Expenses 187,142 77,511Municipal Taxes 638,204 323,374Office Society Maintenance Charges 314,988 619,980Other expenses - 1,839Repairs and Maintenance - Office - 118,082Texvalley Erode Office Expenses 547,354 -Income Tax Filing Fees 24,951 -Development & Export Promotion Fund - 6,900,000Exposure Grant 182,285 -Sundry balances written off (Net) 1,279,273 -Honrarium Charges 31,000 -

Total 40,834,206 16,093,965

35

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL

Notes forming part of financial statements: 31.03.2017

20. Contingent Liabilities are as under:

(i) Regional Director of Companies, Ministry of Corporate Affairs, (MCA) has issued 8 show cause notices in respect of violation of certain provisions of Companies Act, 1956, which are being pursued by the Company as at the close of the year. Amount unascertained (Previous year-Amount unascertained)

(ii) The Registrar of Companies, Mumbai has filed a criminal case against the Council and its directors in Additional Chief Metropolitan Magistrate Court, Mumbai in the earlier years for violation of Section 159 of Companies Act, 1956 in respect of non-filing of annual return for Financial year 2010-11.The matter is being defended by the Council appropriately at the Balance Sheet date.

(iii) An Ex-employee has filed a case against his termination with the Council in the Labour Court, Mumbai- matter pending to be resolved.

(iv) The Council has received a demand notice for tax on interest on investment for AY 2011-12 to 2014-15 for amounts aggregating to `114.69 Lacs (Previous year – `88.06 Lacs) against which the Council has filed an appeal with the Appellate Tribunal.

For all the above cases the Council does not anticipate any significant liability in its books.

21. Provisions for Gratuity and Leave encashment have not been made in respect of the eligible employees, in the Council’s accounts, pending the approval of the Textile Commissioner and the Staff Committee in respect of the Group Gratuity (Cash Accumulation) Scheme of the Life Insurance Corporation of India as at the Balance Sheet date. Consequently the Council has not complied with the recommendations of the Accounting Standard 15 (AS15), Employee Benefits, during the current and previous years. Amount of non-provision as at the Balance Sheet is presently unascertainable (Previous year – Amount unascertainable).

22. During the year under review, the Council was sanctioned `3.98 Crores as Grant-in-aid, out of which the Council received `2.75 Crores till the close of the year. The amount remaining unspent, including similar unspent balances of earlier years, aggregating `0.46 Crores (Previous Year- `0.31 Crores) is shown as an advance by grouping the same under the heads “Other Long Term Liabilities” and “Other Current Liabilities” as the case may be. The same is refundable by the Council to the Government or would be utilized as directed by the Government in near future.

23. The Council is of the view that there is no impairment of assets arising during the year within the meaning of Accounting Standard – 28 Impairment of Assets considering the age of the Fixed Assets.

24. Miscellaneous Receipts include excess provisions of earlier provisions of earlier year amounting to `52,890 (Precious year-Nil) no longer required as written back in Company’s books.

25. During the year, the Council has changed its accounting policy of recognizing Government Grants-in-aid from receipt basis to accrual basis, to be in tune with the generally accepted accounting policies in India. As a consequence, grants receivable as at the close of the year amounting to `47.58 Lacs (Previous year - Nil) were taken to the credit of Income & Expenditure Statement and Other Current Assets were increased by the same extent.

36

26. In the opinion of the Board, Loans and Advances and Other Current Assets have a value on realization in the ordinary course of operations at least equal to the amounts at which theses are stated in the Balance Sheet and the provisions made for all known liabilities are reasonable and adequate.

27. Certain balances under the head Short-term Loans and Advances as appearing in the books of accounts are subject to confirmation from respective parties and consequential reconciliations, if any. However the Council anticipates no significant variations from its book values as on the Balance Sheet date.

28. Disclosure as required by Accounting Standard AS-19 “Leases” in respect of Indenture of Lease :-

(i) Lease Rent debited to the Statement of Income and Expenditure ̀ 1,05,262 (Previous year ̀ 99,600)

(ii) Interest-free refundable deposit given `10,62,000 (Previous year – 10,62,000)

(iii) The term of lease was renewable at the expiry of every three years for a further period as mutually agreed between the lesser and the lessee.

29. Recommendations of Accounting Standard (AS) 22-“Accounting for Taxes on Income” are not applicable to the Council during the year, since there are no timing differences either at the beginning of the year or during the year.

30. The Council being registered under Section 8 of the Companies Act, 2013 and under section 12AA of the Income-tax Act, 1961 as a Charitable Institution the income is exempt under section 11 of the Income-tax Act, 1961.

31. As per the provisions of Section 11 of the Income-tax Act, 1961 accumulated income from year to year should be transferred to specific reserves, to be applied for the purposes for which it has been set aside, i.e. for the objects of the Council. In the event of non-utilisation of the amounts so accumulated, the same would be offered to tax in the year of such non-utilisation as the tax liability will arise only in the said year. There is no such amount which qualifies to be offered for taxation during the current year (Previous year – `69.00 Lacs).

32. Expenditure incurred in foreign currency for organizing various Buyer Seller meets outside India during the year `117.78 Lacs (Previous year - Nil).

33. Outstanding amounts payable to Micro, Small and Medium Enterprises included under Current Liabilities, as per the information available with the Council and relied upon by the auditors – Nil.

34. An amount of `2.50 Lacs shown under the head Short Term Loans and Advances represents cash embezzlement by ex-employee in the earlier years, which continues to be pending for recovery. However, no provision in respect of the same has been made in the books since the Council is hopeful of its full recovery in near future.

35. The Council has not fulfilled the condition pertaining to training requisite number of persons during the year and therefore, as per the schedule in the sanction letter of ISDS, the said grant was not recognized as Income of the Council during the current as well as previous years. Amount under-spent on the said grant during the year- `4.77 Lacs (Previous Year- `29.70 Lacs).

37

36. Details of Specified Bank Notes (SBNs) held and transacted:

(Amount in `)

Particulars Specified Bank Notes(i)

Other denomination notes Total

Balance as on 8th November 2016 30,000 35 30,035

Add : permitted receipts - 85,000 85,000

Less : permitted payments 19,500 84,225 1,03,725

Less: Deposit in bank 10,500 - 10,500

Closing balance as on 30th December 2016 - 810 810

(i) For the purpose of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated November 8, 2016.

37. No provision towards certain outstanding Other Current Assets amounting to `15.67 Lacs (Previous year – `15.67 Lacs) has been made in the accounts, since Council treats them as fully recoverable.

38. As at the Balance Sheet date, the Council is in the process of updating its records showing the required particulars and the situation of the fixed assets.

39. Previous year’s figures have been regrouped / recast wherever necessary so as to make them comparable with those of the current year.

For and on behalf of Board of Directors Purushottam K. Vanga (Chairman) Sunil Patil (Vice-Chairman) M. Duraisamy (COA Member) Hriday Narayan (Executive Director)

Place: MumbaiDate: 10/07/2017

38

NOTES

39

NOTES

40

NOTES

Inaguration ceremony in the hands of Chief Guest Ms. Chandani Wijewardana, Hon’ble Secretary, Ministry of Development Strategies and International Trade, Sri Lanka, along with Shri Sunil Satgonda Patil, Vice Chairman, Shri M Duraisamy, Imm. Past Chairman and Shri Anwar Ahmed Abdul Aziz, COA member at the exhibition hall during the Buyer Seller Meet, on 27th-28th, March, 2017 at Colombo, Srilanka.

Visit of H.E. Mr. Prakash Gupta, Consul General, Consulate General of India, Shanghai at PDEXCIL Pavilion, Group participation in Intertextile Shanghai, China Apparel Fabrics & Home Textiles 2017 – Spring Edition held during (15-17 March, 2017) at Shanghai, China:

Shri. Purushottam K. Vanga, Chairman, PDEXCIL addressing the BSM (TEX-STYLES India- 2017, from 21st-24th, Feb, 2017 at Delhi), explaining about the status of Powerloom sector today in India and various schemes of Govt. of India supporting textiles industry of India.

Shri. K. Veera Raghava Rao, IAS, Hon’ble District Collector, Madurai visited the stalls to look-over their products in the Buyer Seller Meet, held at Madurai from 10.01.2017 to 13.01.2017 along with the presence of Shri. Purushottam K. Vanga, Chairman, PDEXCIL , Shri. Rajgopal Bhagirath Rathi, COA Member.

JAMMU & KASHMIR

HIMACHAL PRADESH

DELHI

PUNJAB

HARYANA

RAJASTHAN

GUJARAT

MAHARASHTRA

MADHYA PRADESH

UTTAR PRADESH

BIHAR

ASSAM

WEST BENGAL

JHARKHAND

ORISSA

ANDHRA PRADESH

UTTARAKHAND

ARUNACHAL PRADESH

NAGALAND

MANIPUR

MIZORAMTRIPURA

MEGHALAYA

CHHATTISGARH

TAMILNADU

KERALA

KARNATAKA

GOA

POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL(Set up by the Ministry of Textiles, Govt. of India)GC-2, Ground Floor, Gundecha Onclave, Kherani Road, Saki Naka, Andheri (East), Mumbai – 400 072.Phone : 022-28502050/2060 Fax : 022-28504146 | E-mail : pdexcilmumbai@gmail.com | Website : www.pdexcil.org

Major Powerloom clusters in India

PDEXCIL