rd23 Annual Report

Powerloom Development & Export Promotion Council

2017-18

Committee of Administration (COA), PDEXCIL along with Special Invitees on

ndthe occasion of the 22 Annual General th

Meeting held on 15 September 2017 at Hotel West End, Mumbai.

Dr.K.Karnan, Additional Director, Department of Handlooms & Textiles, Govt. of Tamil Nadu lighting traditional lamp during inaugural ceremony of BSM

t h n dChennai, held on 19 -22 August, 2017 at Chennai in presence of Shri Purushottam K Vanga, Chairman, Shri Sunil Patil, Vice Chairman, Shri M Duraisamy, Imm. Past Chairman and others.

Press Conference cum Road Show for the promotion of “Textiles India 2017” held in

thMumbai on 12 June 2017. Shri Anant Kumar Singh, then Secretary (Textiles) and Dr.Kavita Gupta, Textile Commissioner, Govt. of India along with Shri Purushottam K Vanga, Chairman, PDEXCIL, addressed the gathering.

Shr i Purusho t tam K. Vanga , Cha i rman , PDEXCIL and Shri Felix A. Fernando, Chairman, Sri Lanka Apparel Exporters Association exchange the MOU signed during “Textiles India 2017” in the presence of Shri Anant Kumar Singh, Secretary (Textiles).

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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 : 1st September, 2018

To,

All the members of the PDEXCIL

Sub : 23rd ANNUAL GENERAL MEETING OF THE PDEXCIL

Sir/Madam,

It isherebynotifiedfor informationofall themembersofPowerloomDevelopment&ExportPromotion Council (PDEXCIL) that the 23rd Annual General Meeting of the PDEXCIL shall be held as per the following schedule;

DATE : 27th of September, 2018 (Thursday)

TIME : 11:30 am

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

The notice of the 23rd Annual General Meeting of the PDEXCIL, the report of its Committee of Administration alongwith its audited Balance Sheet as on the 31st ofMarch,2018and the Income&ExpenditureAccountoftheCouncilforthefinancialyearthatendedonthatday,aresentherewith.

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

Yours faithfully,

Sd/-(S.P.VERMA)

EXECUTIVE DIRECTOREncl : As above.

PDEXCIL

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POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL

COMMITTEE OF ADMINISTRATION

2017-2018

1 Shri Purushottam K. Vanga, Chairman

15 Shri M.A. Ramasamy

2. Shri Sunil Patil,Vice-Chairman

16. Shri T. V. Maruthi

3 Shri M Duraisamy, Immediate Past Chairman

17. Shri Lakshminarayan Kattekolla (From 15.09.2017)

4. Shri T.Karthikeyan, Convenor Export Promotion Panel

18. Shri K C Ganesan ( Up to 15.09.2017)

5. Shri V.R.Agarwal, Convenor Development &ExtensionPanel

19. Shri Ramashankar ( Up to 15.09.2017)

6. Shri Surendra Nath Gupta 20. Shri Gajanan Vishnu Hogade7. Shri Md. Ikram Ansari 21. Shri T Raajasekar 8. Shri Anil Surana 22. Shri Anwar Ahmed Abdul Aziz, (Co-

opted member up to 15.09.2017 and elected member from 15.09.2017)

9. Shri Bharatkumar M. Chhajer 23. Shri Sunil Mandora (From 15.09.2017)

10. Shri Dharmanna M. Sadul 24. Shri Omprakash Shah, Co- opted Member (from 15.09.2017)

11. Shri Sushil Kejriwal 25. Joint Secretary, (Powerloom), MOT

12. Shri Uttam Jain ( Up to 15.09.2017) 26. Textile Commissioner, Govt. of India

13. Shri Rajgopal Bhagirath Rathi 27. Managing Director, NABARD

14. Shri Devesh Patel 28. Managing Director, SIDBI

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NOTICE

Notice is hereby given that the 23rdAnnualGeneralMeetingofthePowerloomDevelopment&ExportPromotion Council [PDEXCIL] will be held at 11.30 a.m. on 27th of September,2018 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 2017-2018, 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, 2018, and the Income and

ExpenditureAccountoftheCouncilforthefinancialyearthatendedonthatday,togetherwiththe 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 at that meeting is requested to give notice thereof, in writing, to the Executive Director of the Council, on or before 5.30 p.m. of 20th September, 2018)

3. To elect a member to the Committee of Administration in place of Shri Purushottam K Vanga 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 Sunil Patil 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 Rajgopal Rathi 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 Gajanan Hogade 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 Dharmanna Sadul 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 Devesh Patel retires by rotation and is eligible for re-election thereto;

9. To elect a member to the Committee of Administration in place of Shri Anil Surana 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 AnnualGeneralMeetingoftheCouncilandtofixtheirremuneration,subjecttotheconcurrenceof the Government of India, as required under articles 55 and 56 of the Articles of Association of the Council;

By an order of the Committee of Administration

Sd/-[S.P.VERMA]

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

Dated : 1st September, 2018.

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THE ANNUAL REPORT OF THE POWERLOOM DEVELOPMENT & EXPORTPROMOTION COUNCIL (PDEXCIL) FOR THE FINANCIAL YEAR 2017-2018

The 22nd Annual General Meeting of the PDEXCIL was held on the 15th of September, 2017 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

14. Shri M.A. Ramasamy

2. Shri Sunil Patil, Vice-Chairman 15. Shri T. V. Maruthi

3. Shri M Duraisamy 16. Shri Lakshminarayan Kattekolla4. Shri T.Karthikeyan 17. Shri Gajanan Vishnu Hogade5. Shri V.R.Agarwal 18. Shri T Raajasekar6. Shri Surendra Nath Gupta 19. Shri Anwar Ahmed Abdul Aziz 7. Shri Md. Ikram Ansari 20. Shri Sunil Mandora 8. Shri Anil Surana 21. Shri Omprakash Shah, Co- opted Member

9. Shri Bharatkumar M. Chhajer 22. Joint Secretary, (Powerloom), MOT

10. Shri Dharmanna M. Sadul 23. Textile Commissioner, Govt. of India

11. Shri Sushil Kejriwal 24. Managing Director, NABARD

12. Shri Rajgopal Bhagirath Rathi 25. Managing Director, SIDBI13. Shri Devesh Patel

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3. During the year under review, the Committee of Administration (Committee) met 3 times on 10.07.2017, 15.09.2017&09.01.2018underthechairmanshipofShriPurushottamK.Vangatoconsideranddecideonmattersconcerningthedevelopment&exportpromotionofPowerloomproducts.TheCommitteewas assisted in its task by the following statutory Panels/Committee:-a) Development & Extension Panelb) Export Promotion Panelc) Staff Committee

4. Shri Purushottam K. Vanga, Chairman, PDEXCIL during his address on the occasion of the 22nd Annual General Meeting of PDEXCIL held on 15.09.2017 briefed about the current situation of powerloom sector, which shows not very encouraging scenario. He further informed that after the introduction of newForeignTradePolicy2015-2020,certainbenefitsavailableundertheearlierpolicywerewithdrawnwhich had a temporary set back on export front. Chairman then informed that with the collective efforts ofEPCsincludingPDEXCIL,theforeigntradepolicywasmodifiedbyexpandingthescopeofMEISbenefitsagainsttheexporttoallA,B&Ccountriesandintroducedinterestsubventionscheme,whichhas helped to some extent and the industry has taken it as a positive approach which may lead to higher exports. The PDEXCIL continued to support and assist the powerloom sector for its overall development.

Chairman then briefed about the export scenario during the year which was showing declining trend of about 0.5% as compared to previous year 2015-16. He then informed about the total export of textiles and clothing during 2015-16 was around 37.89bn USD, which slightly declined to 37.69 bn USD during 2016-17.

Chairman also briefed on the major issues faced by powerloom sector in particular and textiles sector in general to the concerned authorities through various representations, interaction meetings and other available forum. He then informed about the various representation that were taken up such as regarding introduction of 30% capital subsidy under TUFS, extending EPCG facilities for second hand machinery for textiles, uniform power tariff in major powerloom clusters, suggestions and views provided for the textile policies of various states, representation regarding increasing of reward rate under MEIS, provisionsforinterestsubventionsforexports,policyclarificationonexporttoNepal,reducingtheno. of items covered under Handloom Reservation Act and various time to time representations on the recently introduced GST by the Govt. of India, issue of GST on grey fabrics, higher rate of GST on job work, higher rate of GST on synthetic yarn and fabrics etc.

Chairman then informed about various activities carried out by PDEXCIL for the promotion of domestic as well as export market, by conducting 5 domestic buyer seller meet at major centres in India, viz., Nagpur, Trichy, Hyderabad, Madurai and Delhi, 2 major international events under MAI i.e organised Reverse Buyer Seller Meet, IITExpo-2016 at Bengaluru and participation in Intertextile Shanghai, China and 3 international events under MDA scheme i.e participation in Heimtextil Frankfurt 2017, buyer seller meet at Dubai and exhibition cum buyer seller meet at Colombo.

Chairman expressed his thanks and gratitude to the Hon’ble Minister of Textiles, Smt.Smriti Zubin Irani, for her continued support and dynamic approach for the overall development of textile sector. Shri Ajay Tamta, Minister of State for Textiles for his support, Shri Anant Kumar Singh, Secretary (Textiles) for his support and guidance, and also Ms Rashmi Verma, Ex-Secretary (Textiles) for their support. Shri.Madhukumar Reddy, then Joint Secretary (Powerloom), for his continued support and guidance to powerloom sector, Shri Subrata Gupta, Joint Secretary (Export), Shri Puneet Agarwal, Joint Secretary for their support.

Dr. Kavita Gupta IAS, Textile Commissioner, Ministry of Textiles, Govt. of India, Shri S.Balaraju,

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Ex-AdditionalTextileCommissioner,OfficeoftheTextileCommissioner,MinistryofTextiles,whowas always a well wisher of PDEXCIL. Chairman also expressed deep gratitude and sincere thanks to Ms. Rita Teaotia, Ex-Hon’ble Secretary (Commerce). Shri Alok Chaturvedi, Director General of ForeignTrade,NewDelhiandallseniorofficersintheMinistryofTextiles,MinistryofCommerceand DGFT. Chairman also thanked Shri Sunil Satgonda Patil, Vice-Chairman, PDEXCIL and Shri M.Duraisamy, Immediate Past Chairman for their support and guidance, Convenors of various Panel and sub-committees as well as members of the Committee of Administration and members of PDEXCIL.ShriHridayNarayan,JointTextileCommissioner,OfficeoftheTextileCommissioner,whois also holding Additional Charge as Executive Director, PDEXCIL. Shri O.M.Prabhakaran, then Joint Textile Commissioner, Shri S.P.Verma, Joint Textile Commissioner, Shri Ajay Pandit, Director, Shri Balakumar,DeputyDirector,ShriJamilAhmed,AssistantDirectorandotherofficersofOfficeoftheTextileCommissioner,andalsotheofficersofvariousRegionalOfficesoftheTextileCommissioner;especially on their valuable support in organizing BSM and other programmes of PDEXCIL. Lastly Chairman thankedall theofficers, staffmembers for theirhardwork in smooth functioningofouroffice&ShriK.P.Mukundan,DeputyConsultantforhissincerecontributioninallactivitiesanddaytoday functioning of PDEXCIL.

5. The General body [A.G.M.] of the Council had also unanimously passed resolutions adopting the annualreportoftheCommittee,theCouncil’sauditedbalance-sheetandincome&expenditureaccountforthefinancialyearthatendedonthe31st of March, 2017, appointing the auditors of the Council and noting the election of the following members to the Committee:-A) Western Region:

1. Shri Bharatkumar M Chhajer2. Shri Sunil Mandora3. Shri Anwar Ahmed Abdul Aziz

B) Southern Region:1. Shri Lakshminarayan Kattekola2. Shri T Karthikeyan3. Shri T V Maruthi4. Shri M A Ramasamy

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:• IssuesfacedbypowerloomsectorofIchalkaranji,Maharashtra-reg.• RepresentationontheimplementationofMegaClusteratBhiwandiandemploymentgeneration

facilities for powerloom workers. • RepresentationonIssuesfacedbyMade-upsectorofIndia.• Representationonpowertariffandotherrelatedissuesinpowerloomsector.• Representationonissuesfacedbypowerloomsector.• RepresentationonexemptionfromGSTforGreyfabrics.• RepresentationonBhiwandiPowerloomcluster,regardingestablishmentofclothmarketand

yarn depot.• Suggestionsregarding2017-2022TextilePolicyofMaharashtra.• ExemptionfromGSTforAlltypesofFabrics&JobWorkforprocessingofFabrics.

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• IssuesfacedbypowerloomsectorofIndiarelatingtoFTP2015-2020-reg.• RepresentationonViews/commentsondiscussionmadeinthemeetingheldon11.7.2017on

Comprehensive Textile Labeling regulation-reg sent to TXC.• Representation toMOT,ShriArunJaitely,FinanceMinister,MinistryofFinance, regarding

Impositionof5%goods&servicetaxonJobworkinthetextileindustry02.11.2017.• RepresentationtoSecretaryregardingformationofCommitteeofChairmanofallEPCs.• RepresentationtoincludefabricsunderRoSLbenefit.• ConsultationsinconnectionwithMidTermReviewoftheFTP2015-20.• RepresentationtoextendtheenhancedrateunderMEIStofabricsalso,inlinewithmade-ups

and garments.• Representationregardingrequest to formaNationalLevelCommittee tostudyproblemsof

small powerloom establishments sent to Hon’ble Minister of Textiles, Ministry of Textiles, GOI.

• Representationfordroppingtheproposedanti-dumpingdutyonPolyesterStapleFibreimportedfrom China PR, Indonesia, Malaysia and Thailand to the Hon’ble Minister of Commerce, Ministry of Commerce, GOI, Hon’ble Minister of Textiles, Ministry of Textiles, GOI and and Hon’ble Minister of Finance, Ministry of Finance, GOI.

• RepresentationonissueregardingpowertariffofthestateforpowerloomunitssenttoHon’bleChief Minister, Rajasthan.

• RepresentationtoChiefMinister&MinisterofTextiles,MaharashtraregionregardingNewTextile Policy 2018-2023.

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

convenedbyMOT,TXCoffice,MOCetcandotherforumandrepresentedourviewsonvariousissues connected with powerloom sector was heard/presented for remedial policy intervention for the overall development of powerloom sector. Some of such meetings are.

1. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting under the Chairmanship of JS(Exports), Ministry of Textiles, GOI on 03.04.2017 at New Delhi to discuss the framing of a portal for “Textiles Export Promotion Intelligence Scheme (TEIPS)” and the preparedness of “Textiles India 2017”.

2. Shri Hriday Narayan, Executive Director, PDEXCIL had attended a meeting held on 05.04.2017 at Ministry of Commerce, New Delhi regarding MAI proposals for next 3 years (2018-19 onwards) in LAC and EU region.

3. PDEXCIL organized camps on BHIM App at 13 various powerloom clusters for its awareness and promotion such Mumbai (Bhiwandi), Erode, Kangeyam, Salem, Chennai, Palani, Thiruchengode, Palladam, Ichalkaranji, Ahmedabad etc.

4. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended curtain Raiser programme of Textiles India 2017 on 18.04.2017 in Delhi.

5. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 7th TAMC under ATUFS and meetingofEvaluationCommitteeforfinalisationofreportsubmittedbyM/s.WazirAdvisorsPvtLtd.&ReviewtheprogressofNABARDon21.04.2017andProjectApprovalCommittee(PAC)meetingheldonsamedayatOfficeoftheTextileCommissioner,Mumbai.

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6. Shri K.P.Mukundan, Deputy Consultant, had attended meeting convened by Joint Secretary (Export) on 04.05.2017 at New Delhi on Textiles India 2017.

7. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting held under the Chairmanship of Hon’ble Minister of Textiles, MOT, GOI regarding review of preparedness of Textiles India-2017 on 15.05.2017 at New Delhi.

8. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting held under the Chairmanship of Secretary (Textiles) regarding “Textiles India 2017” on 17.05.2017 at Ministry of Textiles, New Delhi.

9. Shri Bharat Kumar Chhajer, COA member, PDEXCIL had attended a Stakeholder Meeting at Ahmedabad on 23.05.2017 for visiting of few functional Textile Units and to review the implementation of various schemes of Ministry of Textiles under the Chairmanship of Shri Anant Kumar Singh, Secretary (Textiles), Govt. of India.

10. Shri K.P.Mukundan, Deputy Consultant, PDEXCIL had attended meeting on 16.06.2017 under the Chairmanship of Joint Secretary (Exports) regarding discussion various agenda on the issue related to Textile India 2017 at Udyog Bhavan, New Delhi.

11. Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended GST workshop organised by Ministry of Textiles in association with National Academy of Customs, Indirect Taxes and Narcotics (NACIN) on 22.06.2017 at, Vigyan Bhawan, New Delhi. The said workshop was Chaired by Hon’ble Minister of Textiles.

12. ShriPurushottamK.Vanga,Chairman,PDEXCILhadattendeddebriefingmeetingonTextilesIndia 2017 undertaken by Hon’ble Minister of Textiles and Secretary(Textile) on 06.07.2017 at Crafts Museum, New Delhi.

13. PDEXCIL has arranged G.S.T. awareness program at Padmashali Samaj Hall, Bhiwandi, on 13.07.2017. Shri Sanjay Mahendru, GST Commissioner & Shri Vishal Jarande, JointCommissioner (GST), Shri Purushottam K. Vanga, Chairman, PDEXCIL were present at the event.

14. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting on issues relating to foreign trade policy 2015-20 Chaired by Hon’ble Minister of Textiles on 24.07.2017 at Udyog Bhawan, New Delhi.

15. Shri Purushottam K.Vanga, Chairman, PDEXCIL alongwith Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL had attended meeting on State New Integrated Textile Policy held on 03.08.2017 at SIMA, Coimbatore.

16. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting under the Chairmanship of Secretary (Textiles) on 22.08.2017 at Udyog Bhawan, New Delhi to examine the recommendations of Roundtables and the Conferences held during Textiles India 2017 for appropriate follow-up action and policy interventions if necessary.

17. A workshop on implementation of Timeline for Universal Rollout of Public Financial Management System (PFMS) for Central Sector Schemes in all implementing Agencies of the Department of Commerce and Ministry of Textiles has been organised on 08.09.2017 at Mumbai as per the direction of Secretary (Textiles) and Commerce Secretary. Shri Vishwas Kahar, Accountant, PDEXCIL had attended the said workshop.

18. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting under Chairmanship of Secretary (Textiles) on 14.09.2017 at Udyog Bhawan, New Delhi, to review the MoUs signed with different countries in textile sector.

19. PDEXCIL had organised its 22nd Annual General Meeting on 15.09.2017 at West End Hotel,

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Mumbai. Shri S.Balaraju Additional Textile Commissioner (Retd.), Office of the TextileCommissioner, Mumbai, Shri Naresh Kumar, Director, Regional Office of the TextileCommissioner, Navi Mumbai alongwith Shri Purushottam K.Vanga, Chairman, PDEXCIL, other COA members of PDEXCIL and other members of PDEXCIL were present.

20. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 63rd Annual General Meeting of TEXPROCIL on 26.09.2017 at Mumbai.

21. PDEXCIL associatedwithRegionalOffice of theTextileCommissioner,NaviMumbai fororganizing Mega Seminar on “PowerTex India Scheme” at Ichalkaranji on 29.09.2017. Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL alongwith other COA members, PDEXCIL had attended the said seminar.

22. Shri Purushottam K.Vanga, Chairman, PDEXCIL and Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended meeting on to review the performance of textiles sector particularly exportsandimportsinthecurrentfinancialyearon04.10.2017.

23. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting organised by FIEO regardingstakeholdersconsultationonexportswiththeHon’bleCommerce&IndustryMinisteron 06.10.2017 at Hotel Ashoka Chanakya Puri, New Delhi.

24. Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended the meeting held under the Chairpersonship of Ms. Aditi Das Rout, Trade Advisor, Ministry of Textiles, GOI, New Delhi on the proposed events submitted by EPCs under MAI scheme, seeking Ministry’s comments/ recommendations on 11.10.2017 at Ministry of Textiles, New Delhi.

25. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting regarding review the status of MoUs under the Chairpersonship of Secretary (Textiles), Ministry of Textiles on 03.11.2017 at Udyog Bhawan, New Delhi.

26. Shri T. Karthikeyan, Convenor Export Promotion Panel, PDEXCIL has attended Tex fair 2017 &FarmtoFinishExpo2017organisedbyTheSouthernIndiaMillsAssociation(SIMA)atCoimbatore during 17th -20th Nov, 2017.

27. Shri Hriday Narayan, Executive Director, PDEXCIL had attended meeting of the Evaluation CommitteeonPowerTexSoftwareheldon17.11.2017attheConferenceHalloftheOfficeofthe Textile Commissioner, Mumbai.

28. AmeetingwasheldbetweenPDEXCILandCMAIofficebearerson18.11.2017atPDEXCILH.O. to strategize and proceed further on MOU signed between the above two organizations for tradebenefitofpowerloomproductmanufacturersandgarmentmanufacturers.

29. ShriS.Sivaraju,OIC,RegionalOffice,Erode,PDEXCILhadattendedameetingattheprojectsiteofM/sErodeMallTextilePvtLimited,(Texvalley,Erode)on20.11.2017regardingverificationon the utilization of space already available in the daily market for the exhibition hall as per the requirementofDPR.RepresentativefromtheOfficeoftheDistrictCollectorErodeandOfficeof the Textile Commissioner, GOI, Mumbai also had attended the said meeting.

30. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended event on Mid-term of the foreign Trade Policy (2015-20) on 05.12.2017 at Convention Hall, Hotel Ashok Chanakya Puri, New Delhi. The said policy has been released in the hands of Shri Suresh Prabhu, Hon’ble Minister of Commerce, Govt. of India.

31. A meeting was held under the Chairmanship of Secretary (Textiles) at Udyog Bhawan on 08.12.2017 to discuss budget proposals for 2018-19. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended the said meeting.

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32. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 29th PAC Meeting for consideration of Projects under PowerTex India scheduled on 11.12.2017 in the Conference HalloftheOfficeoftheTextileCommissioner,Mumbai.

33. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended Stakeholders meeting under theChairpersonship ofMinister ofTextiles,GOI regardingdisseminationof benefits underSAATHI initiatives of EESL scheduled on 13.12.2017 in DGFT’s Committee Room.No.4, Udyog Bhawan, New Delhi.

34. ShriS.Sivaraju,OIC,RegionalOffice,Erode,PDEXCILhadattendedJITinspectionatM/s.Shanthi Textile Mills, Kadachanallur, Namakkal Dist on 13.12.2017. The said inspection was with reference to their request for subsidy under RR-TUFS.

35. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 2nd meeting of the Committee of CITI scheduled on 14.12.2017 at Hotel Sahara Star, Mumbai.

36. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 15th Board meeting of Textile Sector Skill Council at Hotel Sahara Star, Mumbai on 14.12.2017.

37. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended The TEXPROCIL EXPORT AWARD FUNCTION 2016-2017 held on 14.12.2017, at Hotel Sahara Star, Mumbai.

38. Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL had attended the 9th meeting of Technical Advisory-cum-Monitoring Committee (TAMC) under Amended Technology Upgradation Fund Scheme (A-TUFS) is scheduled on 20.12.2017 under the Chairpersonship of the Textile CommissionerintheConferenceHalloftheOfficeoftheTextileCommissioner,Mumbai.

39. PDEXCIL has organized Certificate Distribution Programme for the successfully trainedcandidatesunderISDSon29.01.2018atRegionalOffice,PDEXCIL,Erode.ShriPurushottamK.Vanga, Chairman, PDEXCIL alongwith members of COA from southern region including EX-COA members had attended the said programme.

40. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 2nd Meeting of the Inter-Ministerial Steering Committee (IMSC) under Amended Technology Up-gradation Fund Scheme (A-TUFS) scheduled under the Chairpersonship of Hon’ble Union Minister of Textiles on04.01.2018attheOfficeoftheTextileCommissioner,Mumbai.

41. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting to discuss Comprehensive Textile Labeling Regulation to be held on 06.01.2018 under the Chairpersonship of Dr.Kavita GuptaIAS,TextileCommissionerattheConferencehallofOfficeoftheTextileCommissioner,Mumbai.

42. Ms.Lavany Saxena, Assistant Director, PDEXCIL had attended Sub-Committee meeting of MAI held on 9th- 10th Jan, 2018 at Udyog Bhawan, New Delhi under the Chairmanship of Shri Rajneesh, Joint Secretary, Dept of Commerce to consider MAI proposals for 2018-19 recommended by Territorial/Commodity Divisions.

43. Advisoryboardmeetingheldon18.01.2018inthepremisesofofficeoftheTextileCommissioner,PSC,ErodeundertheChairmanshipoftheDeputyDirectorandOfficerinCharge,RegionalofficeoftheTextileCommissioner,Coimbatorefortheeffectiveandefficientfunctioningofthis Powerloom Service Centre and development of Erode Powerloom Cluster. Shri S.Sivaraju, OIC,RegionalOffice,Erode,PDEXCILhasattendedthesaidmeeting.

44. Shri Purushottam K.Vanga, Chairman, PDEXCIL has attended IMC’s Conference on “Export Promotion and International Trade” on 19.01.2018 at Taj Santacruz, Mumbai.

45. ShriHridayNarayan,JointTextileCommissioner(Cotton),OfficeoftheTextileCommissioner,

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MOT,GOI&ExecutiveDirector,PDEXCILhasattendedtheEvaluationCommitteemeetingofsoftware(PowerTexIndia)on09.02.2018attheConferencehalloftheOfficeoftheTextileCommissioner, Mumbai.

46. ShriHridayNarayan,JointTextileCommissioner(Cotton),OfficeoftheTextileCommissioner,MOT,GOI&ExecutiveDirector,PDEXCILhadattendedmeetingoftheEmpoweredCommitteeof MAI held on 23.02.2018 at Udyog Bhawan, New Delhi, under the Chairpersonship of Ms. Rita Teaotia, Commerce Secretary, DOC to discuss proposals from EPCs and Trade Bodies for MAI assistance during FY- 2018-19.

47. Shri Purushottam K.Vanga, Chairman, PDEXCIL has attended meeting held under the Chairmanship of Secretary (Textiles) on 27.02.2018 at Udyog Bhawan, New Delhi to discuss preparations to hold Textile India 2018.

48. Shri Purushottam K.Vanga, Chairman, PDEXCIL has attended 2nd India -Korea Business Summit on “Scaling up the Special Strategic Relationship through Trade and Investments” on 27.02.2018 at Taj Palace Hotel, New Delhi.

49. Shri PurushottamK.Vanga,Chairman, PDEXCILhad attendedmeeting at the office of theTextile Commissioner, Mumbai on 28.02.2018 to discuss about the mega event being organized at Bengaluru on 8th&9th March, 2018 which is now rescheduled for 11.03.2018 showcasing the growth of Textile sector in Karnataka on the achievements of Ministry of Textiles through its various schemes in the state of Karnataka.

50. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting at Conference Hall of theOfficeoftheTextileCommissioneron05.03.2018todiscussaboutthemegaeventbeingorganised at Bengaluru on 11.03.2018, showcasing the growth of Textile sector in Karnataka on the achievements of Ministry of Textiles through its various schemes in the state of Karnataka.

51. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 3rd Meeting of the Committee of CITI on 13.03.2018 at , Hotel ITC Maratha, Sahar, Andheri (E), Mumbai.

52. Shri Purushottam K.Vanga, Chairman, PDEXCIL has attended 9th Asian Textile Conference (ATEXCON)–theflagshipeventofCITIon14.03.2018inHotelITCMaratha,Mumbai,India.

53. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended meeting at TEXPROCIL, Mumbai on 22.03.2018 to discuss alternate Export Promotion Schemes.

54. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended the programme of the International Textile Conference “Textile 4.0 – Global and Indian Perspective” on 23.03.2018 at Hotel the Lalit, Mumbai.

55. Shri Purushottam K.Vanga, Chairman, PDEXCIL had attended 2nd Meeting of the Inter-Ministerial Steering Committee (IMSC) under Amended Technology Up-gradation Fund Scheme (A-TUFS) on 23.03.2018 under the Chairpersonship of Hon’ble Minister of Textiles at Udyog Bhawan, New Delhi.

56. Shri Purushottam K. Vanga, Chairman, PDEXCIL meeting on 26.03.2018 for discussion on ComprehensiveTextileLabelingRegulationattheOfficeoftheTextileCommissioner,Mumbai.

57. Shri Purushottam K. Vanga, Chairman, PDEXCIL had attended meeting on simplificationofproceduresonATUFSon27.03.2018 in theConferenceHallof theOfficeof theTextileConference, Mumbai.

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SEMINARS & WORKSHOPS :B] Market Promotion activities : i) Domestic Events/Buyer Seller Meets: WithfinancialsupportthroughtheOfficeoftheTextileCommissioner/MinistryofTextiles,under

Integrated scheme for Powerloom Sector Development (ISPSD), Powerloom Development & Export Promotion Council (PDEXCIL) jointly with Regional office of the TextileCommissioner, Coimbatore organised 4 days Buyer Sellers Meet cum EXPO at Kalanjiam Thirumana Mandapam, Chennai from 19.08.17 to 22.08.17. The said BSM was inaugurated by Dr.K.Karnan,AdditionalDirector,DepartmentofHandlooms&Textiles,Govt.of.Tamilnaduinthe presence of Shri. G. Kumaaravel, Assistant Director, RO, TXC, Coimbatore, Shri. Ranjith PShah,President,Apparels&HandloomsExportersAssociation,Chennai,Prof.R.Rajkumar,Secretary, Chennai Hotels Association, Chennai. Shri. Purushottam K. Vanga, Chairman, PDEXCIL presided over the inaugural function and also present were Shri. Sunil Satgonda Patil, Vice-Chairman, PDEXCIL, Shri. M. Duraisamy, Immediate Past Chairman, PDEXCIL, Shri. M.A.Ramasamy, COA Member, PDEXCIL, and other dignitaries. There were total 31 stalls occupied by 23 member exhibitors displaying their products and interacting with buyers. OnestallwasoccupiedbyPDEXCIL&ROTxCtodisseminatethePDEXCILactivity,PowerTex India, GIS, etc., Overall the Buyer-Seller Meet at Chennai was successfully completed.

ii) Textiles in Karnataka 2018 (Mega Event showcasing the growth of textile sector in Karnataka held from 11th to 12th March 2018)

TheOfficeoftheTextileCommissionerjointlywithRegionalOfficeoftheTextileCommissioner,Bengaluru has organized a Mega event at Hotel The Lalit Ashok, Bengaluru, from 11th to 12th March 2018, showcasing the growth of textile sector in Karnataka on the achievements of Ministry of Textiles through its various schemes in the state of Karnataka. On this occasion, buyer seller meet was also concurrently held for 2 days.

A grand inauguration of the buyer seller meet cum facilitation camp on textiles and launch of online portal and mobile app for PowerTex India was organized on 11th March, 2018. Smt. Smriti Zubin Irani, Hon’ble Minister of Textiles presided over the function. Shri D V Sadananda Gowda, Hon’ble Minister of Statistics and Programme Implementation formally inaugurated the buyer seller meet cum facilitation camp on textiles. Shri Ananth Kumar, Hon’ble Minister ofParliamentaryAffairsandChemicals&Fertilizersformallylaunchedtheonlineportalandmobile app for PowerTex India.

Other dignitaries present on the dias were Shri Rudrappa Manappa Lamani, Hon’ble Minister for Textiles and Endowment, Govt. of Karnataka, Shri P.C.Mohan, Hon’ble Member of Parliament, (Bengaluru Central) and Dr. Kavita Gupta, IAS, Textile Commissioner, GOI, Ministry of Textiles.

All EPCs, including PDEXCIL was allotted 9 sq.mtrs stall each and has taken up decorations withappropriateflexbanners,displayofsamplesofpowerloomproductsandvisualonourpastevents especially in Karnataka under the supervision and guidance of Shri Purushottam K.Vanga, Chairman, PDEXCIL and Shri T.V.Maruthi, COA member, PDEXCIL. Shri K.P.Mukundan, Deputy Consultant was also part of organising and attending the PDEXCIL pavilion.

Membership drive was also undertaken by encouraging the powerloom entrepreneurs to enroll as members of PDEXCIL and also to take up exports. The event was grand success.

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iii) Activities under MAI:1. “Textiles India 2017” 30th June to 2nd July 2017, Mahatma Mandir, Gandhinagar,

Ahmedabad, Gujarat. PowerloomDevelopment&ExportPromotionCouncil(PDEXCIL)hadsuccessfully

participated in the Mega International event “Textiles India - 2017” organised by Ministry of Textiles, Govt. of India held during 30th June to 2nd July 2017, at Mahatma Mandir, Gandhinagar, Ahmedabad, Gujarat, India to bring global and Indian Leaders on one platform for trade promotion of textiles products.

Towards the promotion of the event, a road show was organised at Hotel JW Marriot, Mumbai on 12.06.2017 which was led by the Shri Anant Kumar Singh, Secretary (Textile),MinistryofTextiles,GOIandDr.KavitaGupta,TextileCommissioner,Officeof the Textile Commissioner, Mumbai. Detailed presentation was made by CII in the road show.

The Textile India 2017 was inaugurated by the Hon’ble Prime Minister of India Shri Narendra Modi. There were different conferences and seminars held on various themes duringthesaidevent.Awiderangeofproductswereexhibited,includingfibres,fabrics,garmentsandhometextiles in the truesspiritoffibre to fashion.Therewerearound1000 plus exhibitors, 2500 plus international buyers from various countries and 15000 plus domestic buyers. A total of 68 exhibitors from PDEXCIL had participated in the “Textiles India 2017”. PDEXCIL invited 67 foreign buyers from various countries.

During the occasion, Shri M.Duraisamy, Ex-Chairman anchored the round table conference on Madeup- Success Story. PDEXCIL also signed 3 MOUs with Sri Lanka Apparel Exporters Association (SLAEA), Colombo, National Institute of Design (NID), The Clothing Manufacturers’ Association of India (CMAI).

2. IITExpo- Colombo, 2018 an Exhibition cum Buyer Seller Meet under MAI from 21.02.2018-23.02.2018 at Hotel Galadari, Colombo, Sri Lanka.

Powerloom Development & Export Promotion Council (PDEXCIL) has organizedIndia International Textiles Expo (IITExpo-Colombo 2018) an Exhibition cum BuyerSellerMeetunderMAIwiththesupportofMinistryofTextiles&MinistryofCommerce&Industry,Govt.ofIndia.ThesaideventwasinauguratedinthehandsofDr. Sarath Amunugama, Hon’ble Minister of Special Assignments, Ministry of Special Assignments in presence of Dr.Anoma Gamage, Deputy Minister of Petroleum Resources Development, H.E. Shri. Arindam Bagchi, Acting High Commissioner of India to Sri Lanka, Mr. Felix A. Fernando, Chairman, Sri Lanka Apparel Exporters Association, Shri. Purushottam K. Vanga, Chairman, PDEXCIL, Shri. Sunil S. Patil, Vice Chairman, PDEXCIL, Shri. M.A. Ramasamy, Shri. T. Raajasekar, Shri. Bharat Kumar Chhajer, COA Member, PDEXCIL and other dignitaries from Govt. of Sri Lanka, Indian High Commission, Trade Associations and major importers. Ms. Chamari Rodrigo, Director, Ministry of Foreign Affairs, Govt. of Sri Lanka, Consul General-designate of Sri Lanka to Mumbai had also visited the event.

Dr. Sarath Amunugama, Hon’ble Minister of Special Assignments, while inaugurating the event said that Sri Lanka is sourcing fabrics from India and transforming it into apparel and garments for rest of the world, could lead to win-win situation for both the countries. He cited the rich textile traditions in both countries and stellar contribution of textile sector to Sri Lanka’s economy.

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H.E. Shri. Arindam Bagchi, Acting High Commissioner of India to Sri Lanka, noted that India would encourage Sri Lankan companies to be part of the supply and value chains of large Indian companies. He urged Sri Lanka to make use of fully-funded trainingopportunitiesinIndiaunderIndianTechnical&EconomicCo-operation(ITEC)programme, in which a number of slots is earmarked for textile related subjects.

Shri Purushottam K. Vanga, Chairman, PDEXCIL welcomed the gathering and gave a brief introduction on Powerloom industry. Shri Bharat Chhajer in his special address briefed on the event and PDEXCIL activities. The inauguration function ended with vote of thanks by Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL.

There were total of 44 exhibitors from various textile clusters of India who had displayed variety of fabrics, home textiles and traditional items suitable for apparel, industrial, technical application and general consumers. About 500 trade visitor had visited this B2B event and had a good business outcome. The event was a grand success.

Meeting with Sri Lanka Apparel Exporters Association (SLAEA) An MOU was signed with Sri Lanka Apparel Exporters Association during Textiles

India 2017 held at Ahmedabad for mutual co-operation and for further trade relations. AsafollowupameetingwasheldatSLAEAofficeatColomboon22nd Feb, 2018, wherein the executive members of SLAEA and PDEXCIL were present. Representive samples from the powerloom sectors were presented and detailed interaction took place in the meeting. Both side agreed to extend corporation in all possible area and to explore supply of fabrics to garment manufacturer exporters of Sri Lanka.

iv) Other Activities:1. PowerloomDevelopment&ExportPromotionCouncil(PDEXCIL)inassociationwith

National Textile Corporation (NTC) had organized an awareness programme of “Yarn directly to weavers” at Bhiwandi on 11.09.2017. Shri Purushottam K.Vanga, Chairman, PDEXCIL alongwith Shri Vivek Plawat, Executive Director Marketing, NTC.

Similar meeting with NTC was organized at Ichalkaranji on 12.09.2017 by Shri Sunil Satgonda Patil, Vice Chairman, PDEXCIL alongwith Shri V.R.Agarwal and Shri Gajanan Hogade, COA members.

Another meeting with NTC was organized by Shri Anwar Ahmed Abdul Aziz at Powerloom Service Centre, Malegaon on 26.10.2017. Shri Vivek Plawat, Executive Director, Marketing, NTC addressed the gathering regarding directly supply of yarn by NTC to weavers.

2. International Textile Machinery & Accessories exhibition (ITMACH) held atAhmedabad, Gandhinagar from 07.12.2017 to 10.12.2017: PDEXCIL was a supporting organizationinInternationalTextileMachinery&Accessoriesexhibition(ITMACH)held at Ahmedabad, Gandhinagar from 07.12.2017 to 10.12.2017. It was a 3 day event and had showcased textile machinery besides yarn, fabric and other textiles. PDEXCIL stall was allocated at Hall No 6 Stall No.D-28. The main objective of ITMACH is to showcaseexcellenceintextiletechnology&innovations,toencourageinvestmentintechnology, capacity building and collaboration within the industry and for catering to the market opportunities and creating new front for marketers. Shri Pankesh Chipkar, Assistant, PDEXCIL was deputed for co-ordination of PDEXCIL stall. There were

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approximately 80 visitors mostly from the weaving sector who visited PDEXCIL stall to enquire about activities of PDEXCIL, membership and services. Some of these visitors showed their interest in taking membership with PDEXCIL and services. PDEXCIL upcoming international event at Colombo, Sri Lanka was also conveyed to the visitors. PDEXCIL has taken good opportunity to disseminate its information on various schemes available for powerloom sector and to attract new members to PDEXCIL.

C] Other Major Activities:(i) Activities under ISDS: The status of ISDS programme during the year under report is

given below: ISDS Training Status on April-2017 to March-2018

Sr. No

Course Name Enrolled Trained Drop Out Training in Progress

Placed To be Placed

1 Powerloom Weaver Operators

174 117 57 0 117 0

2 Sewing Machine Operators

1186 896 182 108 943 61

3 Fabric Checkers 80 69 11 0 69 04 Warping Machine

Operators10 4 6 0 4 0

5 Sizing Machine Operators

24 12 12 0 12 0

6 Projectile Loom Operators

15 14 1 0 14 0

7 Garment Checkers 90 47 13 30 77 0Total 1579 1159 282 138 1236 61

D] Group Insurance Scheme: PDEXCIL could enroll a total of 27 powerloom workers engaged inweavinganditsalliedactivitiesduringthefinancialyear2017-2018.

8. Issues and Action taken by PDEXCIL: i. Court Cases : a) ThecasefiledbyMr.JanardhanNaikanex-temporarypeonbeforetheCentralIndustrialcum

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 16.04.2018 and now adjourned for 10.07.2018.

b) A complaint filed against section 162 of the CompaniesAct 1956 before the court of theHon’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 regardingnonfilingofannualreportfortheyear2010-11onorbefore30.11.2011,asrequiredundersection159(1)oftheCompaniesAct.Thesaidbalancesheethasbeensubsequentlyfiledwith 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 31.03.2017, 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 higherofficersintheMinistryofCorporateAffairs.Howeverthereisnoprogressinthematterof show cause notice during the year under report.

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b) PDEXCIL has received a demand notice for tax on interest earned from investments for the assessmentyear2015-16, as is been received sinceAY2011-12. ThePDEXCILhasfiledappeal against the decision of the assessing officer of IT dept beforeCompetentAuthority.The total amount so demanded is Rs.62,12,410/- for AY. 2015-16. PDEXCIL has paid Rs. 4,00,000/-(20%oftotaldemand),pendingfinaldisposalofourappeal.

In consultation with CharteredAccountant, appeal has been filed by PDEXCIL before theIncome Tax Appellate Tribunal (ITAT) for the AY 2011-12. The said appeal was disposed by theHon’ble ITATvide itsorderdtd.28.07.2017. According to thisorder theconcernedfilewasrevertedbacktotheassessmentofficerwithadirectiontomakeafreshassessmentaftergiving a reasonable opportunity of being heard to the assessee. The same is still pending with assessmentofficer.SimilarlyappealhasalsobeenfiledbeforeITATinrespectofAY2012-13.Thehearinginthematternowfixedfor10.07.2018.

PDEXCIL is pursuing the matter through the consultant CA and is hopeful of a favorable decisionandthereforenotanticipatinganysignificantliabilityandhencenoprovisionhasbeenmade.

iii. Clarification of the COA on the qualified opinion of the auditors.a. Regarding non provision of doubtful trade receivables amounting to Rs.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 Rs.2.5 Lakh, the PDEXCIL hadfiledcomplaintwiththelocalpolicestationforfraudulentencashmentofRs.3Lakhfromthe PDEXCIL account. After recovering of Rs.50,000/-, the balance amount of Rs.2.5Lakh is shown in the balance sheet. Since the police is investigating the matter, no provision has been made in our accounts.

c. Regardingnonprovisionofretirementbenefitsi.e.gratuityandleaveencashmentappropriateaction, as approved by COA is being taken for introducing gratuity scheme through the LIC of India. The matter is under process and will be implemented shortly with the consent of Staff Committee. 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 andofficerswerealsoappearedinvariouspress/media.TheIITExpo-Colombo-2018organisedby PDEXCIL at Colombo was well covered by all major print and visual media of Sri Lanka and textile related media in India. Shri Purushottam K.Vanga, Chairman, PDEXCIL has issued a press release/interview on various subjects. Some of them are as follows:• InterviewofChairmanappearedinApparelview,Chairmanarticleon“Indianweaving

industry” in July 2017. • InterviewofChairmanappearedinTheDollarBusinessOctober2017issueon‘Lowered

Incentives have Hurt Exports’.• Interview of Chairman appeared in Indian Textile Journal, Chairman Interview on

‘PowerloomScenarioofMaharashtra’ andhow theyaremanaging inmodernizationand exports.

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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 1776 as on 31.03.2018 against 2075 members as at the end of previousfinancialyear2016-17.

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Independent Auditors’ ReportTo the MembersPowerloom Development & Export Promotion CouncilI. Report on the Financial Statements We have audited the attachedfinancial statements ofPowerloom Development & Export Promotion

Council (hereinafter referred to as the Council / the Company), comprising of the Balance Sheet as at 31st March 2018, the Statement of Income and Expenditure and the Cash Flow Statement for the year thenended,alongwiththeSignificantAccountingPoliciesandotherexplanatoryinformationforminganintegral 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

(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialpositionandfinancialperformanceoftheCompanyinaccordancewiththeAccountingStandardsreferred 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 internalfinancialcontrol,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueand fair view and are free from material misstatement, whether due to fraud or error.

III. Auditors’ Responsibility Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit. 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 thereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)ofthe Act. Those Standards require that we comply with ethical requirements and plan and perform the audit toobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivetrueandfairviewinordertodesignauditproceduresthatareappropriatein 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 theoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideareasonablebasisforourauditopinion.

IV. Opinion (i) Basis for Qualified Opinion

(a) ReferNoteNo.21regardingnon-provisionofemployeebenefitsviz.,GratuityandLeaveEncashment, 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. 32 regarding non-provision of doubtful Advances representing embezzlement amounting to Rs. 2.50 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 the above extent, with a similar overstatement in Short Term Loans and Advances ; and

(c) Refer Note No. 34 regarding non-provision towards doubtful Trade Receivables amounting to Rs. 15.67 Lacs, since the management is hopeful of their full recovery. Consequently, Surplus for the year was overstated by Rs. 15.67 Lacs with a similar overstatement by the same extent in Trade Receivables and understatement of provisions.

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In our opinion and to the best of our information and according to the explanations given to us, subjecttotheeffectsofthemattersdescribedin(a)to(c)inBasisforQualifiedOpinionparagraphIVabove,thefinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredand 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

2018; (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) InthecaseoftheCashflowstatement,oftheCashflowoftheCompanyfortheyearended

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 Council, as per the exemption available under Para 1(2)(iii) of the said Order.

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;(b) In our opinion, proper books of account as required by law have been kept by the Council

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 Council;(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, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2018 from being appointed as a director in terms of sub-section (2) of Section 164 of the Act;

(f) Thereportingrequirementsonadequacyoftheinternalfinancialcontrolsoverfinancialreporting and the operating effectiveness of such controls are not applicable to the Council videNotificationNo.GSR583(E) dated 13th June 2017 read with General circular No. 08/2017 dated 25th July 2017;

(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, we report that;i) TheCouncilhasdisclosedtheimpactofpendinglitigationsonitsfinancialposition

initsfinancialstatements(ReferNoteNo.20);ii) The Council does not have any long-term contracts including derivative contracts

for which there were any material foreseeable losses; and iii) There were no amounts which were required to be transferred to the Investor

Education and Protection Fund by the Council.

For S M M P & AssociatesChartered Accountants

Firm Registration No. 120438 W

Chintan ShahPartner

Membership No. 166729Mumbai, dated : 09th July, 2018

20

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILBalance Sheet as at 31st March, 2018

Amount (`)Particulars Notes As at 31st

March 2018 As at 31st

March 2017 CORPUS AND LIABILITIES Corpus Funds Corpus Fund 2 4,82,64,400 4,76,71,900 Reserves and Surplus 3 9,96,30,950 9,72,36,556

Non Current Liabilities Long Term Liabilities 4 - 4,76,615

Current Liabilities Short term Borrowings 5 - 52,90,534 Other Current Liabilities 6 1,46,85,337 1,24,71,793 Short term Provisions 7 4,96,140 4,96,140

Total 16,30,76,827 16,36,43,538

ASSETS Non-Current Assets Fixed Assets-Tangible Assets 8 2,71,98,988 2,91,29,285 Non-Current Investments 9 8,65,00,000 6,75,00,000 Long Term Loans and Advances 10 1,71,19,584 1,54,42,163 Other Non-current Assets 11 1,83,49,670 1,83,49,670 Current Assets Cash and Bank balances 12 53,41,904 2,25,41,685Other Current Assets 13 57,70,405 92,92,012Short Term Loans and Advances 14 27,96,276 13,88,723

Total 16,30,76,827 16,36,43,538

Notes Forming Part of Financial Statement

Notesformanintegralpartofthesefinancialstatements.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)

Mumbai, dated 09th July 2018 Camp Varanasi, dated 09th July 2018

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POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILStatement of Income and Expenditure for the year ended 31st March, 2018

Amount (`)

Particulars Notes Year ended 31st March 2018

Year ended 31st March 2017

INCOME

Revenue from Operations 15 2,04,52,949 3,76,49,586

Other Income 16 1,06,63,277 1,08,60,166

Total Revenue 3,11,16,226 4,85,09,752

EXPENDITURE

EmployeeBenefitsExpense 17 56,46,827 61,75,206

Finance Costs 18 85,544 44,241

Depreciation and Amortisation 8 4,23,950 5,04,085

Other Expenses 19 2,06,62,010 4,07,61,691

Total Expenditure 2,68,18,331 4,74,85,223

Excess of Income over Expenditure before Prior period items 42,97,895 10,24,529

Prior Period Items (2,89,273) (72,515)

Excess of Income over Expenditure after Prior period items 40,08,622 9,52,014

Surplus for the year carried to Balance Sheet

Notesformanintegralpartofthesefinancialstatements.

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)

Mumbai, dated 09th July 2018 Camp Varanasi, dated 09th July 2018

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POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILCash flow statement for the year ended 31st March 2018

Amount (`)

Particulars For the Year Ended 31st March 2018

For the Year Ended 31st March 2017

CASH FLOW FROM OPERATING ACTIVITIESNetProfitbeforeTaxation 40,08,622 9,52,014 Adjustments for :-Interest on bank O/D 62,334 11,694 Interest Income (82,01,693) (83,04,629)Sundry Balances written off/written back 14,664 12,79,273 Depreciation / Amortization 4,23,950 5,04,085

(77,00,745) (65,09,577)Adjustments for Working Capital Changes :-(Increase) / Decrease in Trade Receivables(Increase) / Decrease in Other Current Assets 35,21,607 (55,19,683)Increase / (Decrease) in Trade PayablesIncrease / (Decrease) in Short Term Provisions - (21,18,200)Increase / (Decrease) in Other Current Liabilities 22,13,544 3,40,485 Increase/(Decrerase)inShort-termLoans&Advances (14,07,553) 11,31,116 Increse / (Decrease) in Short-term Borrowings (52,90,534) 52,90,534

(9,62,935) (8,75,748)Less :- Taxes paid - - Net Cash generated / (used) in Operating Activities (A) (46,55,059) (64,33,311)

CASH FLOW FROM INVESTING ACTIVITIESlong term liabilities (4,76,615) (18,72,892)Purchase of Fixed Assets (1,04,059) (2,25,337)Fixed deposit Matured - Interest received 82,01,693 83,04,629 (Purchase) / Sale of Investments - (15,30,000)Net Cash generated / (used) in Investing Activities (B) 76,21,020 46,76,400

CASH FLOW FROM FINANCING ACTIVITIESAdvance given (16,77,421) (28,36,128)Interest receivedInterest on Overdraft facility (62,334) (11,694)Sundry balances written off/written back (14,664) (12,79,273)Entrance Fees received 5,92,500 10,75,000 Net Cash generated / (used) in Financing Activities (C) (11,61,918) (30,52,095)Net Increase / (Decrease) In Cash & Cash Equivalents (A +B +C) 18,04,042 (48,09,006)Cash&CashEquivalents-OpeningBalance 35,37,865 83,50,691 Cash & Cash Equivalents - Closing Balance 53,41,904 35,41,686

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)

Mumbai, dated 09th July, 2018 Camp Varanasi, dated 09th July, 2018

23

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILNOTES TO THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31.03.2018

A. Significant Accounting Policies and Notes on Accounts:I. Significant Accounting Policies1. 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 thSeptember 2013, issued by the Ministry of Corporate Affairs, in respect of Section 133 of the Companies Act, 2013.

2. 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 onthedateoffinancialstatements.Actualresultscoulddifferfromthoseestimates.Anyrevision to accounting estimates is recognized prospectively in the current and future periods.

3. Fixed Assets and Depreciationi) 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.

4. Recognition of income etc. Income is accounted for on accrual basis, including recognition of Grant-in-Aid.5. GST: GST 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. 6. 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 outofexchangefluctuationsarerecognizedintheIncomeandExpenditurestatement.

7. 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.

24

8. Retirement Benefits The Council’s contribution to the Provident Fund is charged consistently to the revenue.

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.

9. 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 required to be made in the accounts.

10. Impairment of Assets The carrying amount of the Council’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.

11. Accounting for Provisions, Contingent Liabilities and Contingent Assets Provisions are recognized in terms of Accounting Standard 29 – Provisions, Contingent

LiabilityandContingentAssets(AS-29)notifiedbytheCompanies(AccountingStandard)Rules 2006, where there is a present legal or statutory obligation as a result of past events, whereitisprobablethattherewillbeoutflowofresourcestosettletheobligationandwhena 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 bemeasuredintermsoffutureoutflowofresourcesorwhereareliableestimateof theobligation cannot be made. Obligations are assessed on an ongoing basis and only those havingalargelyprobableoutflowofresourcesareprovidedfor.

25

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL

Notes Forming Part of the Financial Statements as at 31st March 2018 As at

31.03.2018 Amount (`)

As at 31.03.2017

Amount (`) Note 2 - Corpus Fund

As per last Balance Sheet 4,76,71,900 4,65,96,900

Add : Entrance Fees Received during the year 5,92,500 10,75,000

Total 4,82,64,400 4,76,71,900

Note 3 - Reserves And Surplus

(a) Building Fund

As per last Balance Sheet 2,75,63,964 2,92,48,477

Less: Depreciation for the year 16,14,228 16,84,513

Closing Balance (a) 2,59,49,737 2,75,63,964

(b) Development and Export Promotion Fund

As per last Balance Sheet 56,60,622 56,60,622

Add:Transferred during the year 5,50,000 -

Less:Spent during the year - -

Closing Balance (b) 62,10,622 56,60,622

(c) Statement of Income and Expenditure

Balance as per last Balance Sheet 6,40,11,970 6,30,59,956

Add: Surplus for the year 40,08,622 9,52,014

Less: Transferred during the year (5,50,000) -

Closing Balance (c ) 6,74,70,592 6,40,11,970

(a+b+c) 9,96,30,950 9,72,36,556

Note 4 - Long Term Liabilities

Advance towards Integrated Skill Development Scheme(ISDS) - 4,76,615

Total - 4,76,615

Note 5 - Short term Borrowings Overdraft facility with State Bank of India (Secured against Fixed Deposit Receipt of the Council amounting Rs.67,00,000 pledged with the Bank) - 52,90,534

Total - 52,90,534

26

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31st March 2018

As at 31.03.2018

Amount (`)

As at 31.03.2017

Amount (`) Note 6 - Other Current Liabilities Deposits 9,05,891 10,62,000 Statutory Dues Payable 2,45,519 3,36,614 Excess Entrance/ Membership/Participation Fees 19,562 8,501 Advance for Membership/Buyer Seller Meet 2,94,808 69,998 Grants Refundable 95,800 6,51,685 Advance for Participaton Fees 10,42,854 10,42,854 Payable against ISDS 33,49,776 20,180 Grant payable - 13,77,477 Trade payables 42,25,347 32,95,598Other payables 40,21,447 40,21,447Outstanding Liabilities 4,84,333 5,85,439

Total 1,46,85,337 1,24,71,793

Note 7 - Short term Provisions Provision for expenses 4,96,140 4,96,140

Total 4,96,140 4,96,140

27

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28

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31st March 2018

As at 31.03.2018

Amount (`)

As at 31.03.2017

Amount (`) Note 9 - Non-Current Investments (Non-Trade,Unquoted, At cost) In securities / Bonds etc. In Government Bonds: 8,65,00,000 6,75,00,00086,500 (Previous Year 67,500) 8% Savings (Taxable) Bonds, 2003 of Rs.1000 each of Government of India

Total 8,65,00,000 6,75,00,000

Note 10 - Long Term Loans and Advances (Unsecured, considered good, unless otherwise stated)Security Deposits 56,574 61,134Other Advances 35,07,893 34,40,544AdvanceTaxes&TaxDeductedatSource 1,35,55,117 1,19,40,485

Total 1,71,19,584 1,54,42,163

Note 11 - Other Non-current Assets (Unsecured, considered good)Other Bank Balances - Fixed Deposits with Banks 1,83,49,670 1,83,49,670With maturity of more than 12 months)

Total 1,83,49,670 1,83,49,670

Note 12 - Cash and Bank balances Cash in Hand 23,181 16,134Balance with BanksIn Current accounts 53,18,723 35,25,551In Fixed deposit accounts(maturity within 12 months) - 1,90,00,000

Total 53,41,904 2,25,41,685

29

As at 31.03.2018

Amount (`)

As at 31.03.2017

Amount (`) Note 13 -Other Current Assets (Unsecured, considered good)Participation fees receivable 18,96,985 19,37,178InterestAccruedonGovt.Bonds&FixedDeposits 30,20,768 25,57,227Prepaid Expenses 31,664 39,265Grant Receivable 8,20,988 47,58,342

Total 57,70,405 92,92,012

Note 14 - Short Term Loans and Advances (Unsecured, considered good) GST Input Tax receivable 11,04,905 13,88,723 Grant Receivable (ISDS) 16,91,371 -

Total 27,96,276 13,88,723

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL Notes Forming Part of the Financial Statements as at 31st March 2018

30

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCIL

Notes Forming Part of the Financial Statements for the year ended 31st March 2018 Year ended

31.03.18 Year ended

31.03.17 (Amount `) (Amount `)

Note 15 - Income From Operations

Membership and Subscription 35,52,001 36,22,376

Grant for Intergrated Powerloom Development Scheme 14,04,200 48,48,315

Market Access Intiative Grants 92,20,988 1,07,58,342

Market Development Assistance Grants - 58,45,246

Participation Fees

Outside India 25,20,000 58,13,820

Within India 37,47,955 31,50,569

Grant for Exposure Visits - 35,04,653

Advertisement income - 78,000

Other Misc.Receipt 7,805 28,265

Total 2,04,52,949 3,76,49,586

Note 16 - Other Income

InterestonBonds&FixedDeposits 82,01,693 83,04,629

OfficeRent 24,26,011 22,56,750

Miscellaneous Income 35,573 1,78,787

Other Rent - 1,20,000

Total 1,06,63,277 1,08,60,166

Note 17 - Employee Benefit Expenses

Salaries, Wages and Allowances (including Bonus) 50,37,185 54,95,301

Employer's contribution to Provident Fund and Administrative Expenses 5,49,330 6,08,466

Staff Welfare Expenses 60,312 71,439

Total 56,46,827 61,75,206

Note 18- Finance Cost

Interest on Overdraft Facility with Bank 62,334 11,694

Bank Charges 23,210 32,547

Total 85,544 44,241

31

POWERLOOM DEVELOPMENT AND EXPORT PROMOTION COUNCILNotes Forming Part of the Financial Statements for the year ended 31st March 2018

Year ended 31.03.18

Year ended 31.03.17

(Amount `) (Amount `)

Note 19 - Other Expenses Buyer Seller Meet Expenses 1,52,26,341 3,04,77,444Exposure Visit expenses - 29,95,395Travelling Expenses 7,06,355 3,77,196Conveyance 2,32,736 42,911Electricity Charges 2,60,640 2,55,760Hospitality Charges 39,298 46,925Annual General Meeting Expenses 2,12,941 2,00,311

Meeting Expenses 5,88,714 8,66,273

Legal and Professional Fees 3,88,885 2,17,582

Consultancy Charges 9,60,203 7,60,127Audit Fees 40,000 40,000Repairs and Maintenance - Others 95,242 1,33,244Telephone Expenses 1,15,955 1,22,308Books&Periodicals 1,915 3,196Printing and Stationery 1,21,009 1,95,496Vehicle Expenses 1,38,667 1,07,458Postage and Courier 50,114 79,719RegionalOfficeExpenses 1,29,555 7,10,967Rent, Rates and Taxes - 1,05,262Miscellaneous Expenses 96,749 1,03,848Other Membership Fees 12,500 7,323Advertisement Charges - 12,797House Keeping Charges 1,41,800 1,33,300Insurance Expenses 13,733 9,523Other Interest 1,809 14,342Integrated Skill Development Scheme (ISDS) Expenses - - Seminar Expenses - 88,978Computer Data Processing 27,646 1,615Election Expenses 25,697 19,499Publication Expenses 1,01,104 1,87,142Municipal Taxes 6,43,900 6,38,204OfficeSocietyMaintenanceCharges 2,54,838 3,14,988Exposure Grant - 1,82,285Sundry balances written off (Net) 14,664 12,79,273Honrarium Charges 19,000 31,000

Total 2,06,62,010 4,07,61,691

32

Powerloom Development and Export Promotion CouncilNotes forming part of financial statements: 31.03.201820. 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) TheRegistrarofCompanies,MumbaihasfiledacriminalcaseagainsttheCouncilanditsdirectorsin Additional Chief Metropolitan Magistrate Court, Mumbai in the earlier years for violation of Section159ofCompaniesAct,1956inrespectofnon-filingofannualreturnforFinancialyear2010-11.The matter is being defended by the Council appropriately at the Balance Sheet date.

(iii) AnEx-employeehasfiledacaseagainsthis terminationwiththeCouncil in theLabourCourt,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 2015-16 for amounts aggregating to Rs. 176.81 Lacs (Previous year – Rs. 114.69 Lacs) against whichtheCouncilhasfiledanappealwiththeAppellateTribunal.

ForalltheabovecasestheCouncildoesnotanticipateanysignificantliabilityinitsbooks.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 AccountingStandard15(AS15),EmployeeBenefits,duringthecurrentandpreviousyears.Amountofnon-provision as at the Balance Sheet is presently unascertainable (Previous year – Amount unascertainable).

22. During the year under review, the Council was sanctioned Rs. 1.40 Crores as Grant-in-aid, out of which the Council received Rs. 0.98 Crores till the close of the year. The amount remaining unspent, including similar unspent balances of earlier years, aggregating Rs. 0.10 Crores (Previous Year- Rs. 0.46 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. 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 these are stated in the Balance Sheet and the provisions made for all known liabilities are reasonable and adequate.

25. Certain balances under the head Short-term Loans and Advances as appearing in the books of accounts aresubjecttoconfirmationfromrespectivepartiesandconsequentialreconciliations,ifany.However,theCouncilanticipatesnosignificantvariationsfromitsbookvaluesasattheBalanceSheetdate.

26. 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 Rs. NIL (Previous year Rs.1,05,262)(ii) Interest-free refundable deposit given Rs.8,91,436 (Previous year – Rs. 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.27. 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.

28. 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 from Income tax under Section 11 of the Income-tax Act, 1961.

33

29. As per the provisions of Section 11 of the Income-tax Act, 1961 accumulated income from year to year shouldbetransferredtospecificreserves,tobeappliedforthepurposesforwhichithasbeensetaside,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. Thereisnosuchamountwhichqualifiestobeofferedfortaxationduringthecurrentyear(Previousyear– Nil).

30. Expenditure incurred in foreign currency for organizing various Buyer Seller meets outside India during the year Rs.45.86 Lacs (Previous year - Rs. 117.78 Lacs).

31. 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 (Previous year - Nil).

32. An amount of Rs. 2.50 Lacs (Previous year – Rs.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.

33. TheCouncilhasnotfulfilledtheconditionpertainingtotrainingrequisitenumberofpersonsduringtheyear 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 over-spent on the said grant during the year- Rs.16.91 Lacs (Previous Year- Rs. 4.77 Lacs).

34. No provision towards certain outstanding Trade Receivables under Current Assets amounting to Rs.15.67 Lacs (Previous year – Rs. 15.67 Lacs) has been made in the accounts, since, the Council treats them as fully recoverable.

35. As at the Balance Sheet date, the Council is in the process of updating its records showing the required particularsandthesituationofthefixedassets.

36. Expenses of amounting to Rs.2.89 Lacs (Net) represent those belonging to earlier periods and recognised in the current year (Previous year – Rs.0.73 Lacs ).

37. Previousyear’sfigureshavebeenregrouped/recastwherevernecessarysoastomakethemcomparablewith 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) Camp Varanasi, dated 09th July 2018

NOTES

NOTES

NOTES

A Roadshow was held in association with The Southern Gujarat Chamber of Commerce &

thIndustry (SGCCI) on 11 January 2018 for the promotion of IITExpo-Colombo 2018 in the presence of Shri. Vishwanath R. Agarwal, Past Chairman, PDEXCIL, Shri. Devesh Patel, COA Member, Shri. P M. Shah, President, SGCCI, Shri. Hetal R. Mehta, Vice-President, SGCCI.

Chief Guest Dr. Sarath Amunugama, Hon’ble Minister, Govt of Sri Lanka inaugurating ‘IITExpo-

st rdColombo 2018’ held on 21 to 23 February, 2018 at Colombo, Sri Lanka in presence of Shri Purushottam K Vanga, Chairman, Shri Bharatkumar M Chajjer, COA Member, Shri M A Ramasamy, COA Member, H.E. Shri. Arindam Bagchi, Acting High Commissioner of India to Sri Lanka and Shri Felix Fernando, Chairman, Sri Lanka Apparel Exporters Association (SLAEA).

Hon'ble Minister of Special Assignments, Govt. of Sri Lanka & Acting High Commissioner of India to Sri Lanka interacting with Indian exhibitors at ‘IITExpo-Colombo 2018’.

Indian delegation attended “IITExpo-Colombo st rd2018” held during 21 - 23 February, 2018

at Hotel Galadari, Sri Lanka.

A Roadshow was held in association with The Southern Gujarat Chamber of Commerce &

thIndustry (SGCCI) on 11 January 2018 for the promotion of IITExpo-Colombo 2018 in the presence of Shri. Vishwanath R. Agarwal, Past Chairman, PDEXCIL, Shri. Devesh Patel, COA Member, Shri. P M. Shah, President, SGCCI, Shri. Hetal R. Mehta, Vice-President, SGCCI.

Chief Guest Dr. Sarath Amunugama, Hon’ble Minister, Govt of Sri Lanka inaugurating ‘IITExpo-

st rdColombo 2018’ held on 21 to 23 February, 2018 at Colombo, Sri Lanka in presence of Shri Purushottam K Vanga, Chairman, Shri Bharatkumar M Chajjer, COA Member, Shri M A Ramasamy, COA Member, H.E. Shri. Arindam Bagchi, Acting High Commissioner of India to Sri Lanka and Shri Felix Fernando, Chairman, Sri Lanka Apparel Exporters Association (SLAEA).

Hon'ble Minister of Special Assignments, Govt. of Sri Lanka & Acting High Commissioner of India to Sri Lanka interacting with Indian exhibitors at ‘IITExpo-Colombo 2018’.

Indian delegation attended “IITExpo-Colombo st rd2018” held during 21 - 23 February, 2018

at Hotel Galadari, Sri Lanka.

Major Powerloom Clusters in India

if undeliverded, please return to:

To,

POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL

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