Gillette_India_Limited_AR_20

Annual Report 2019-20 11 Company Overview Board's Report MD&A Corporate Governance Financial Statements Gillette India Limited 1. Energy efficient compressors: Energy efficient compressors have been installed which resulted in reduction of the total number of compressors running simultaneously leading to projected savings of approx. 700,000 KWH of power per year. 2. Restoration of heating, ventilation and air conditioning (HVAC) systems: HVAC systems in Air Handling Units (AHUs) have been refurbished and replaced with integrated combined EC motors which has optimized use of electrical energy and resulted in cost savings. 3. Auto tube cleaning system for chillers: Periodic cleaning systems reduces the power consumption used by air cooling system which is among the largest consumers of electricity. 4. Installed motion detection devices: Motion sensors helped in reducing electricity consumption by automatically turning off lights in unoccupied areas. 5. Optimizing the contract demand: Post extensive data analysis on maximum load requirement at plants, we put in measures that have been able to reduce the contract demand by more than 700 kVA which has led to significant savings. Capital Investment on Energy Conservation Equipment At Company's Bhiwadi plant, a capital investment to the tune of approximately ` 1 crore was made in procuring energy efficient compressors to fulfill site requirements, leading to projected savings of approx. 700,000 KWH of power per year. At Company's Baddi plant, capital investment of approximately ` 9 lakhs was made towards AHU refurbishment project for optimization in use of electrical systems. TECHNOLOGY ABSORPTION i. Efforts made towards technology absorption: Use of low-pressure compressors. ii. Benefits derived like product improvement, cost reduction, product development or import substitution: Use of low-pressure compressors resulted in reduced electricity consumption and costs. iii. Imported technology (during last three Financial Years, if any): a. Details of technology imported: Double pitch double edge perforation tool & bruderer press, which doubles production output on same speed, resulting in productivity improvement & cost reduction. b. Year of import: 2017 c. Whether the technology been fully absorbed: Yes iv. Expenditure on research & development: Your Company has not incurred any expenditure on research and development during the Financial Year. FOREIGN EXCHANGE EARNINGS & OUTGO The details of foreign exchange earnings and outgo as required under Section 134 of the Companies Act, 2013 and Rule 8(3) of Companies (Accounts) Rules, 2014 are mentioned below: ( ` in Lakhs ) For the year ended June 30, 2020 For the year ended June 30, 2019 Foreign Exchange earnings 14,056 14,373 Foreign Exchange outgo 46,918 52,109 RELATED PARTY TRANSACTIONS Your Company has formulated a policy on related party transactions which is also available on Company’s website at https://in.pg.com/ india-governance-and-pol icies/gi l/terms-and- policies/. This policy deals with the review and approval of related party transactions. All related party transactions are placed before the Audit Committee for review and approval. Prior omnibus approval is obtained for related party transactions which are of repetitive nature, entered in the ordinary course of business and at arm’s length. All related party transactions are subjected to independent review by chartered accountant firm to confirm compliance with the requirements under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.