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DIC India Ltd.

BSE: 500089 Sector: Industrials
BSE 16:01 | 27 Mar 2018 DIC India Ltd
NSE 05:30 | 01 Jan 1970 DIC India Ltd
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OPEN 466.20
CLOSE 452.45
52-Week high 635.00
52-Week low 432.65
Mkt Cap.(Rs cr) 426
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DIC India Ltd. (DICIND) - Director Report

Company director report

Your Directors have pleasure in presenting the Annual Report for the year ended 31stDecember 2015.


The Global economy growth in 2015 had not been as good as was expected. Even thoughgrowth was noticed in United States and United Kingdom Euro Area and Japan lagged behind.China is on a path of gradual deceleration.

Amongst all these India with GDP growth of 7.4% in the July-September quarter wentahead of China where growth was 6.9% for the corresponding period firmly cementing itsposition as the world's fastest growing major economy in 2015. The growth of Indianeconomy has to be seen in the backdrop of negative export growth during the year due tostagnation in global economic growth and another bad monsoon. The GDP growth in 2015 wasmainly fuelled by falling crude prices which was the lowest in the decade and also othercommodity prices. This helped check the balance of payment from going awry. This wasbecause crude is one of the largest import baskets and the lower price helped raise theeconomy. The low crude prices helped improving corporate performances overall and yourCompany with petro based products being one of the major inputs was no exception andaccordingly reaped the benefit of the price drop. However the devaluation of the Chineseyuan contributed to the fall in Indian rupee which to some extent set off the benefitachieved from lower crude price. As inflation eased the Reserve Bank of India (RBI) cutinterest rates four times this year to reduce the cost of borrowing and help stimulategrowth.

Amongst major factors which is considered to revolutionize the Indian businessscenario expectations remains high that key reforms in particular a long-delayed goodsand services tax (GST) bill would be passed shortly. India's GDP growth is expected to bestable at 7.5% in 2016-17 as it is more dependent on its inherent strength and is lessexposed to external factors including slowdown in China and global capital flows.


Your Company recorded a turnover of Rs.7460.62 million as against Rs.7186.95 million inthe previous year registering an increase of 5 % in terms of value as well as volume.Coupled with a fall in input prices and adopting various strategies the Company went froma Loss (before tax) of Rs.392.23 million in the previous year to profit before tax of Rs402.97 million. Similarly profit after tax was Rs 297.12 million as against a negativeprofit after tax of Rs.308.90 million.

(Rs. In Million)
2015 2014
Sales excluding excise duty 7460.62 7186.95
Other Income 34.78 35.04
Total Revenue 7495.40 7221.99
Profit before Taxation 402.97 (392.23)
Provision for Taxation including deferred taxation (105.85) 83.34
Profit after Tax 297.12 (308.89)
Profit brought forward from the previous year 1203.81 1512.71
Amount available for Appropriation: 1480.23 1203.81
Proposed Dividend 36.72 -
Tax on Dividend 7.47 -
General reserve 10.00 -
Balance Carried Forward 1435.06 1203.81

The Company operates in two segments - printing inks and lamination adhesives. Whilethe Company registered an increase of 2.68% in the turnover of printing inks at Rs 6933.26million (previous year Rs 6752.14 million) it registered an increase of 19.64% in theturnover of lamination adhesives which increased from Rs 469.85 million in the previousyear to Rs 562.14 million during the year under review. The profit from the ink segmentand lamination adhesives were Rs 536.86 million (previous year loss of Rs 211.12 million)and Rs 27.59 million (previous year loss of Rs 11.79 million) respectively.

The Board in its meeting held on 23rd March 2015 had appointed Mr. Shailendra HariSingh as the Managing Director and CEO with effect from 23rd March 2015 for the period offive years.

To ensure that the Company is able to maintain its profitability your management hastaken several steps like cost effectiveness rationalization of expenditures improvingoperational efficiencies and induction of new technology. The Management expects that theCompany would be able to repeat its performances in the future also.


Your company actively seeks out opportunities available in the market and works onconverting the opportunities into viable market. The primary threat comes from the factthat the opportunities are equally visible to your Company's competitors who are alsotrying to exploit the opportunity to their benefit. A combination of product innovationsconsistent quality delivery and continuous enhancement of capability and efficiency ofdistribution pipeline will help your Company address the threat.

The growth of the Company is linked to the overall economic growth. Primary risk to thebusiness will be on account of adverse changes to the economy. Volatility in raw materialprices like crude resin etc is a concern. The Management monitors raw material demand andsupply prices and acts pro-actively to minimize the risk.


No material changes and commitments have occurred after the close of the year till thedate of this Report which affect the financial position of the Company.


There has been no change in the nature of business of the Company during the financialyear ended 31st December 2015.


The printing ink industry comprise of publication and commercial packaging and others.Amongst them the packaging application segment is the main growth driver in the printingink industry led by growth in demand for flexible packaging and other packaging materialsin various industries. As per surveys the global printing inks market is poised tosustain a healthy compounded annual growth rate (CAGR) of 5.0% from 2014 through 2020.India being amongst the fastest growing economy is no exception and would replicate thegrowth.


The Company proposes to transfer a sum of Rs. 1000000 to Reserve during the financialyear ended 31st December 2015.


Your Board recommends the rate of dividend declared to be Rs 4.00 per share (FY2014Rs.Nil per share) subject to approval of shareholders at the ensuing Annual GeneralMeeting.


The paid up share capital of the Company as on 31st December 2015 was Rs 91.98 millionand there has been no change in the capital structure of the Company.


The Company has not accepted any deposits during the year under review.


The Board evaluates all the decisions on a collective consensus basis amongst theDirectors. The intervening gap between the Meetings was within the period prescribed underthe Companies Act 2013.

During the financial year ended 31st December 2015 8 (eight) Meetings of the Board ofDirectors of the Company were held.

The details of the Board Meetings held during the F.Y. 2015 have been furnished underClause I(2)(D) in the Corporate Governance Report forming a part of this Annual Report.


All the Independent Directors have given declaration to the Company stating theirindependence pursuant to Section 149(6) of the Companies Act 2013 and the same have beenplaced and noted by the Board in its meeting held on 4th February 2015.


A Nomination and Remuneration Policy has been formulated pursuant to the provisions ofSection 178 and other applicable provisions of the Companies Act 2013 and Rules theretostating therein the Companies policy on Directors' appointment and remuneration by theNomination and Remuneration Committee and approved by the Board of Directors at itsmeeting held on 5th December 2014.

The said policy may be referred to at the Company's official website at the weblink


The Company has not given any loan guarantees or made any investments exceeding sixtyper cent of its paid-up share capital free reserves and securities premium account or onehundred per cent of its free reserves and securities premium account whichever is moreas prescribed in Section 186 of the Companies Act 2013.


A Related Party Policy has been devised by the Board of Directors at its meeting heldon 5th December 2014 for determining the materiality of transactions with related partiesand dealings with them. The said policy may be referred to at the Company's officialwebsite at the weblink The AuditCommittee reviews all related party transactions quarterly.

Further the members may note that the Company has not entered into the following kindsof related party transactions:

– Contracts/arrangement/transactions which are not at arm's length basis

– Any Material contracts/arrangement/transactions


The details forming part of the extract of the Annual Return in form MGT 9 forms partof this report and is annexed herewith and marked as Annexure C.


According to Regulation of 25(3) of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 a meeting of the IndependentDirectors is required to be held to evaluate the performance of the Non-IndependentDirectors. Accordingly a meeting of Independent Directors was held on 4th August 2015wherein the performance of the non-independent directors including the Chairman wasevaluated.

The Nomination and Remuneration Committee at its meeting held on 4th February 2015established the relevant criteria. Based on the said criteria the Board at its meetingheld on 5th February 2016 critically adjudged the performance of the IndependentDirectors.


Capital Expenditure during the year towards tangible & intangible assets amountedto Rs. 56.77 million a major part of which was spent on building and plant &machinery.


As required under Section 134(3)(m) of the Companies Act 2013 read with the Companies(Accounts) Rules 2014 the information relating to Conservation of Energy TechnologyAbsorption and Foreign Exchange earnings & outgo is annexed and forms a part of thisReport.


The Company does not have any subsidiary/associate/joint venture company for the yearended 31st December



Your Company believes that the competence and commitment of the people are theprinciple drivers of competitive advantage that enable the enterprise to create anddeliver value. The industrial relations climate of your Company continues to remainharmonious with focus on improving productivity quality and safety. Efforts are beingmade to strengthen organizational culture in order to attract and retain the best talentin the industry. Training needs are identified in a systematic manner and regular trainingprogrammes are organised both in-house and external where employees are nominated toparticipate. The Board records its appreciation of the commitment and support of theemployees and looks forward to their continued support. As on 31st December 2015 theCompany had 846 employees (including contractual and third party) on its pay roll.

Information in accordance with the provisions of Section 197(12) of the Companies Act2013 read with Rule 5 of the Companies (Appointment and Remuneration of ManagerialPersonnel) Rules 2014 as amended forms part of this Report marked as Annexure B. As perthe provisions of Section 136(1) of the Companies Act 2013 the Annual report excludingthe information on employee's particulars is being sent to the members which is howeveravailable for inspection at the Registered office of the Company during working hours andany member interested in obtaining such information may write to the Company Secretary andthe same will be furnished without any fee and free of cost.


No complaint has been brought to the notice of the Management during the year ended31st December 2015.


The Company maintains a website where detailed information ofthe Company and its products are provided.


The Company has a Whistle Blower Policy in place for vigil mechanism. The said policyhas been amended keeping in view of the amendments in the Companies Act 2013 and theSecurities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations 2015. The said policy may be referred to at the Company's official websiteat the weblink


Your Company has an adequate system of internal control procedures which iscommensurate with the size and nature of business. Detailed procedural manuals are inplace to ensure that all the assets are safeguarded protected against loss and alltransactions are authorized recorded and reported correctly. The internal control systemsof the Company are monitored and evaluated by internal auditors and their audit reportsare periodically reviewed by the Audit Committee of the Board of Directors. Theobservations and comments of the Audit Committee are placed before the Board.


Your Company is listed with The Calcutta Stock Exchange Limited BSE Limited andNational Stock Exchange of India Limited and the Company has paid the listing fees to eachof the Exchanges.


There were no significant material orders passed by the Regulators / Courts / Tribunalswhich would impact the going concern status of the Company and its future operations.


The composition and terms of reference of the Audit Committee has been furnished underClause I(3) in the Corporate Governance Report forming a part of this Annual Report. Therehad been no instances where the Board has not accepted the recommendations of the AuditCommittee.


The CSR Committee has been constituted by the Board of Directors of the Company at itsmeeting held on 26th March 2014 and subsequently reconstituted on 21st April 2015. Thepresent constitution of the Committee is as follows:

Sl. No. Name of the Director Category Designation in the Committee
1 Mr Utpal Sengupta Independent Director Chairman
2 Mr Subir Bose Independent Director Member
3 Mr Yasuo Ikeda Whole-time Director Member
4 Mr Paul Koek Non-executive Director Member
5 Mr Shailendra Hari Singh Managing Director & CEO Member

The said policy may be referred to at the Company's official website at the weblink

As the members would be aware the company had a loss of Rs 392.23 million during theyear ended 31st December 2014 and as such in view of the loss the Management decided notto engage in CSR activity till the position of the Company was consolidated. Accordinglyno expenditure was incurred on the CSR front for the year ended on 31st December 2015.

For the financial year ended 31st December 2015 the Company has a profit after tax ofRs. 402.97 million. Pursuant to the provisions of Sec 135 of the Companies Act 2013 andapplicable Rules the Company has a corpus of Rs 2.85 million in its CSR funds to beexpended towards fulfilling its responsibility towards the society.

The Management of the Company held detailed discussion internally and it was decidedthat the company at present did not have the infrastructure to implement and regulate CSRactivities on its own. Considering the same detailed discussions were held with variouseligible NGO's registered with the governing body Indian Institute of Corporate Affairsfor exploring the best avenue open to the Company.

Your management is pleased to inform that the Company has decided to focus on childeducation as its core CSR activity and has accordingly executed MOU with Child Relief andYou (CRY) to fund its Vikramshila Project in Monteswar block of Burdwan district in WestBengal which is expected to collectively benefit approx 5000 students between the age of0-18 years who due to various reasons like lack of infrastructure have no access toproper education. To ensure accountability CRY will be asked to define "collectivebenefits" and payment will be phased in tune with the time frame activities andmeasurable outcomes and timely reporting with indicators of achievement. The CSR Report isattached marked as Annexure A.

The Company wishes to inform the members that it is well aware of its responsibilitytowards fulfilling its social responsibility. The Company would take necessary action overthe next two years to fulfill its CSR obligations.


Your Company attaches considerable significance to good Corporate Governance as animportant step towards building investor confidence improving investors' protection andmaximizing long-term shareholders value. The certificate of the Auditors M/s Lovelock& Lewes confirming compliance of conditions of Corporate Governance as stipulatedunder Schedule V(E) of the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 of the Stock Exchanges is annexed.


Highest priority is accorded to environment occupational health and safety by yourCompany. Your Company's factories at Kolkata Noida and Ahmedabad are all ISO certified byBVQI. Kolkata and Noida plant are ISO 9001:2008 ISO 14001:2004 and BS OHSAS 18001:2007certified while Ahmedabad plant is ISO 9001:2008 certified. Your Directors through theCompany's Safety Health and Environment Department oversee and review the integratedEnvironment Occupational Health and Safety Audits which ensure comprehensive coverage ofall Company locations. Various proactive measures have been adopted and implemented whichinter-alia include adoption of cleaner technology conservation of resources through wastereduction recycling and reuse of waste materials and ongoing training of employees. YourCompany's focus on sustainable development will continue to be reinforced by improvingstandards of safety and environmental protection and further strengthened by theassociation with DIC Corporation Japan which accords vital importance to these aspects.


In a business where information is critical Information Technology plays a vital rolefacilitating informed decision-making to grow the business. Over the years the Companyhas invested extensively in infrastructure people and processes with the objective tocapture protect and transmit information with speed and accuracy.

To align with the DIC Group requirement the Company has installed SAP ERP suite for areliable high end comprehensive disciplined and integrated business solution.


Pursuant to the recommendation of the Nomination & Remuneration Committee who inits meeting held on 4th February 2015 had recommended the same the Board in its meetingheld on 23rd March 2015 had appointed Mr Shailendra Hari Singh as the Managing Director& CEO of the Company with effect from 23rd March 2015 for a period of 5 years.

Mr. Shailendra Hari Singh born on 12th May 1964 graduated from Institute of ChemicalTechnology (formerly University Department of Chemical Technology Mumbai) in 1985. He hasaround 30 years of experience in the chemical industry. Prior to his appointment in DICIndia Ltd. Mr Singh was the Asia Pacific Coatings Industry Manager of Eastman ChemicalCompany based in Singapore where he was responsible for integrating & aligningmarketing sales & technology functions defining key growth platforms and executingbusiness strategy by defining key milestones organisation development & resourcerequirement.

In the present leadership role Mr. Shailendra Hari Singh is responsible forleading the development and execution of the Group and Company's long term strategy andcontinuously generating and growing shareholder's value through sound business strategiesand drive strong business growth.

The members through Postal Ballot results of which was declared on 26th June 2015 hasapproved the appointment of Mr Shailendra Hari Singh as the Managing Director & ChiefExecutive Officer.

In terms of Articles of Association of the Company Dr. P K Dutt retire from the Boardby rotation and being eligible offer himself for re-appointment. The appointment of Dr.Dutt form part of the Notice of Annual General Meeting and the Resolutions are recommendedfor your approval. The profile of Dr Dutt is given in the Notice of the Annual GeneralMeeting.


Pursuant to the provisions of Section 134(5) of the Act the Directors state that:

i. In the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures if any; ii.The Directors had selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the profitand loss of the company for that period;

iii. The Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

iv. The Directors had prepared the annual accounts on a going concern basis; and

v. The Directors had laid down internal financial controls to be followed by thecompany and that such internal financial controls are adequate and were operatingeffectively.

vi. The Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.


In accordance with the provisions of Section 148 of the Companies Act 2013 and theCompanies (Audit & Auditors) Rules 2014 the Company is required to appoint a costauditor to audit the cost records of the applicable products of the Company relating tothe business of manufacturing printing inks. Accordingly M/s. Sinha Chaudhuri &Associates Cost Accountants (Firm regn No. 000057) were appointed as the Cost Auditorsfor auditing the Company's cost accounts for the year ended 31st December 2016.


Messrs Lovelock & Lewes Chartered Accountants (FRN 301056E) retiring Auditorsbeing eligible offer themselves for re-appointment.


The notes on financial statements referred to in the Auditors' Report areself-explanatory and do not call for any further comments. The Auditors' Report is aUn-modified report and does not contain any qualification reservation adverse remark ordisclaimer.


The provisions of Section 204 read with Section 134(3) of the Companies Act 2013mandates Secretarial Audit of the Company to be done from the financial year commencing onor after 1st April 2014 by a Company Secretary in Practice. The Board in its meeting heldon 5th February 2016 ratified the appointment of Mr. Tarun Chatterjee Practising CompanySecretary (Certificate of Practice No. 6935) as the Secretarial Auditor for the financialyear ending 31st December 2015. The Secretarial Auditors' Report for the financial yearending 31st December 2015 is annexed to the Boards' Report.


The Company has transferred a total sum of Rs.0.14 million during the financial year2015 to the Investor Education & Protection Fund established by the CentralGovernment in compliance with Section 205C of the Companies Act 1956.


The Company has obtained approval for In-house R&D facilities u/s 35(2AB) of IncomeTax Act 1961 for its units at Kolkata Bengaluru and Noida from Government of IndiaMinistry of Science and Technology New Delhi. This approval is valid till 31st March2018. The Company will make suitable applications for renewal of approval for the abovefacilities in due course.


The Company has identified various risks faced by the Company from different areas. Asrequired under Regulation 17 of the Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations 2015 the Board has adopted a riskmanagement policy whereby a proper framework is set up. Appropriate structures are presentso that risks are inherently monitored and controlled. A combination of policies andprocedures attempts to counter risk as and when they evolve. The Company has also formed aRisk management Committee which monitors the various functions and regions to establishany risk existing in the operational functions of the Company. The constitution and termsof reference are set out in details in the Corporate Governance Report.

The risks and its mitigating factors are discussed by the Committee and subsequentlyplaced before the Board for their opinion and advice. The current risk management reportwas discussed by the Board in its meeting held on 11th December 2015.


Your Directors take this opportunity to thank the customers shareholders suppliersbankers business partners/associates financial institutions Reserve Bank of IndiaSecurities and Exchange Board of India and Central and State Governments for theirconsistent support and encouragement to the Company. I am sure you will join our Directorsin conveying our sincere appreciation to all employees of the Company and Associates fortheir hard work and commitment. Their dedication and competence has ensured that theCompany continues to be a significant and leading player in the printing ink industry.

On behalf of the Board
Dr. Prabir Kumar Dutt
Place: Kolkata Shailendra Hari Singh
Date: 5th February 2016 Managing Director & CEO


Cautionary Statement: Statement in the Directors' Report and Management Discussion& Analysis Report describing the Company's expectations may be forward-looking withinthe meaning of applicable securities laws & regulations. Actual results may differmaterially from those expressed in the statement. Important factors that could influencethe Company's operation include global and domestic demands and supply conditionsaffecting selling prices new capacity additions availability of critical materials andtheir costs changes in government policies and tax laws economic development of thecountry and such other factors which are material to the business of the Company.


Statement pursuant to Section 134(m) of the Companies Act 2013 read with TheCompanies (Accounts) Rules 2014 forming part of the Directors' Report

Conservation of Energy

(I) Steps taken for impact on conservation of energy

The Company's operations do not involve substantial consumption of energy in comparisonto the cost of production. Energy conservation measures have been implemented in thefollowing areas:

1. Rationalization of capacitor power bank at Noida and Kolkata plant.

2. Introduction of smaller air compressor during night shift at Noida.

3. Cooling tower fan motor control according to water temperature at Noida.

Total energy consumption is as per Form-A and forms part of the Report.



(A) Power and Fuel Consumption

(a) Fuel consumption Units 2015 2014
1 Electricity
(i) Purchased from Electricity Board
KWH Million 5.18 4.94
TotalAmount Rs. in Million 41.73 36.93
Average Rate Rs./Units 8.06 7.47
(ii) Purchased from Others
KWH Million 6.60 6.09
TotalAmount Rs. in Million 58.76 50.63
Average Rate Rs./Units 8.91 8.30
(iii) Own Generation - through Diesel Generator
KWH Million 0.32 0.35
Unit per litre of diesel Kwh 4.54 3.37
Average Rate Rs./Units 14.14 17.40
2. HSD Used [other than 1(iii) above]
Ltrs Million 0.36 0.41
TotalAmount Rs in million 18.25 25.61
Average Rate Rs./Units 50.14 62.96
3. Furnace Oil
Ltrs (PNG)* Million 0.09
Total Amount Rs. in Million 3.95
Average Rate Rs./Units 45.53

* The Company has moved to Piped Natural Gas (PNG) during the year.

(II) Steps taken for utilizing alternate sources of energy Introduction of CNG forboilers at Noida in place of high speed diesel.

(III) Capital Investment sanctioned/incurred for energy consumption equipmentsCapacitor power bank at Noida and Kolkata plant - Rs 1.76 million Electricity measurementsystem for individual equipment - Rs. 1.17 million

(B) Research & Development

1. Specific Areas in which R&D efforts have been put in by the Company

For development of:

l Development of Volatile Organic Content free semi finished colour range for Sheetfedapplication l Development of Sheetfed process colours set for non-woven substrate lDevelopment of high-gloss Wet Offset UV varnish l Development of Water based primer andonline UV varnish for twin coater application l Gravure UV varnish for paper

2. Benefits derived as a result of R&D

The Company has successfully developed the previously mentioned technology(ies) andproducts listed in B1 above and the process of technology. These have resulted in:

• Opportunities to expand business in new areas

• Cost and quality advantage in highly competitive inks market

• Develop indigenous production process

• Inks range expanded to cater high-end customers and will act as an importsubstitute

• Environment friendly products

3. Future Plan of Action

The Company's R&D is working continuously for the development of new productsprocesses and improved formulations to give high quality superior performance inks fordifferent applications to its customers.

4. Expenditure on R&D

The Company has modern R&D Centres at Kolkata Bengaluru and Noida unit which arerecognized by Dept. of Scientific and Industrial Research Ministry of Science &Technology Government of India. During the year the Company has incurred the followingexpenditures on R&D Facilities:

(a) Capital Expenditure of Rs.4.55 million

(b) Recurring Expenditure of Rs. 27.79 million

(c) Total Expenditure Rs. 32.34 million and

(d) Total R&D Expenditure as a percentage to total Turnover was 0.43%.

C. TechnologyAbsorptionAdoption and Innovation

1. The efforts made towards Technology Absorption Adoption and Innovation

The Company has been successfully developing the technologies and products listedin B1 above.

2. Benefits derived as a Result of above Efforts

As a result of the aforesaid efforts the Company has been able to expand its businessreach apart from becoming more competitive which will give significant edge over theothers. Some of the inks will provide import substitute which will be an added advantageto the Country also.

3. Information in case of Imported Technology (Imported during the last Fiveyears reckoned from the beginning of the Financial Year).

The Company has executed an Agreement with its Parent Company DIC Corporation(formerly Dainippon Ink & Chemicals Inc.) Japan on 1st April 2007 (with effect from1st January 2007 till 31st December 2016) to import technology and technical informationfor manufacturing poly-ester poly-urethane poly-urea resin solely for captive consumption.Poly-ester poly-urethane poly-urea resin is used to manufacture gravure inks a finishedproduct of the company and comes under the segment of liquid ink. Poly-ester poly urethanepoly-urea resins are presently being imported and such manufacture in India through DICtechnology will reduce the company's dependence on imported items. Further it will reducethe cost of the company to a great extent.

The Company had also executed a fresh Technical Collaboration Agreement with DICCorporation Japan with effect from 1st July 2011. This Technical Collaboration Agreementdoes not relate to a specific project or product but transfer of technology 'on an ongoingbasis' for all the existing and future range of printing inks and lamination adhesives.The scope of Agreement covers upgradation of existing products manufacturing techniquesquality assurance raw materials testing training to Indian technicians and also use ofDIC's trade names brand names marks and symbols.

D. Foreign Exchange Earnings and Outgo

Exports during the year stood at Rs. 500.72 million (from Rs. 505.05 million in 2014)registering a marginal decrease of 0.86%. Earnings in foreign exchange through exports andother earnings amounted to Rs. 509.80 million. Outgo of foreign exchange on import of rawmaterials spare parts capital goods traded goods and also in respect of royaltydividend and other matters amounted to Rs. 1763.79 million (Rs. 1959.30 million in 2014).