BOARD'S REPORT TO THE MEMBERS OF 3M INDIA LIMITED, Your Directors have pleasure in presenting the 29th Annual Report of the Company together with the Audited Financial Statements for the Financial Year ended March 31, 2016. STATE OF COMPANY'S AFFAIRS The external environment indicates long term growth in India. Several leading financial institutions have vouched for the growth as well. While the Indian economy gives us long term optimism, currently prevailing issues also made us play cautiously in the market environment. Your Company focused on improving productivity and gearing up for the much faster paced economy that is expected over the next few years. The mantra we followed is productivity led growth in this financial year. Productivity improvement was achieved through 5 distinct steps that the Company undertook; > Portfolio prioritization and Commercialization focus: We focused on relentlessly prioritizing our resources to our prioritized businesses. > Vital Few Metrics: We strengthened the predictability of our actions by focusing on a few metrics, following the Hoshin Kanri methodology of Business Process Execution. > Market & Segment Prioritization: Developed a deep understanding of the external environment and focusing on segments that are profitable. > Keeping the Customer First: Enhanced our customer service team and developed newer business models including ecommerce, which helped in attaining a more effective reach to our end customers. > Developing a bigger, bolder and smarter plan through increased internal collaboration. Change Management was integral to executing the above five steps, while keeping our employees engaged and energized. Following these steps helped us to enter a phase of "Efficient growth", which is central to our growth strategy. The Company registered an overall turnover growth of 14.31% at Rs. 212,019.48 Lakhs for the financial year ended March 31, 2016 compared to Rs.185,477.60 Lakhs in the previous year. The Profit Before Interest and Depreciation was at Rs. 35,906.79 Lakhs compared to Rs. 21,758.98 Lakhs for the previous year. The operating margin for the current year was at 16.94% compared to 11.73% for the last year. Profit Before Tax was at Rs.30,799.23 Lakhs compared to Rs. 16,456.22 Lakhs for the previous year. Profit After Taxation was at Rs. 20,092.98 Lakhs compared to Rs.10,834.16 Lakhs for the previous year. Lower material cost and interest, portfolio prioritization and expense productivity increased the profitability at all levels for the year under review. Export Sales was at Rs.4,672.24 Lakhs for the year ended March 31, 2016 compared to Rs. 3,942.92 Lakhs in the previous year, an increase of 18.50%. The Industrial business grew by 9.90%; Health Care business grew by 15.51%: Safety and Graphics business grew by 16.71%; Consumer business grew by 16.81% and Energy business grew by 30.12%. The EPS (Basic and Diluted) of the Company for the year 2015-16 was Rs. 178.36 per share as compared to Rs. 96.17 per share in the previous year. Detailed analysis of the performance has been discussed in the Management's Discussion and Analysis Section of the Annual Report. CONTRIBUTION TO EXCHEQUER During the Financial year 2015-16, the Company through its business contributed to various taxes viz., VAT, TDS, Sales Tax, State Excise, CENVAT and Customs close to Rs.46,707.08 Lakhs, in aggregate. MATERIAL CHANGES AND COMMITMENTS There have been no material changes and/or commitments affecting the financial position of the Company since the close of the Financial year and the date of this report. CHANGE IN THE NATURE OF BUSINESS There were no changes in the nature of business during the year under review as prescribed in Rule 8(ii) of the Companies (Accounts) Rules, 2014. DIVIDEND AND TRANSFER TO RESERVES The Company has launched new growth plan with a long term objective and is in the process of implementing many initiatives and projects. A more detailed assessment is being carried out to estimate the required resources. As a result, it has been decided to conserve and retain the earnings and, therefore, not propose dividend or transfer any amounts to reserves. CAPITAL INVESTMENTS Capital Investments during the year 2015-16 were at Rs. 1,092.46 Lakhs (Net of capital work-in-progress and capital advances) (2014-15: Rs. 1,471.70 Lakhs). MANAGEMENT DISCUSSION AND ANALYSIS The Management Discussion and Analysis Report is annexed herewith as "Annexure A". CORPORATE GOVERNANCE AND SHAREHOLDER INFORMATION A separate Report on Corporate Governance in terms of Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred as "Listing Regulations") along with a Certificate from a Practising Company Secretary regarding compliance to the Conditions stipulated under Chapter IV of Regulations is annexed as "Annexure B". DETAILS OF BOARD MEETINGS DURING THE YEAR During the financial year ended March 31, 2016, five (5) Meetings of the Board were held on May 29,2015, August3,2015, October30, 2015, February 5,2016 and February 26, 2016.The details of other committee meetings are given in the Corporate Governance Report. DIRECTORS AND KEY MANAGERIAL PERSONNEL Mr. B.S. Iyer, Chairman of the Board, ceased to be a Director on the Board of the Company upon completion of his term as Independent Director with effect from the closing hours on 31st March 2016. He was associated with the Company as Director from December 2001. The Board expresses its deep appreciation of the valuable contributions made by Mr. Iyer to the progress of the Company. At the Meeting of the Board held on May 27, 2016: - Ms. Radhika Rajan was appointed as Additional Director categorized as Non-Executive Independent Director of the Company from May 27, 2016. The Board of Directors welcomes Ms. Radhika Rajan to the Board. The details of Ms. Radhika Rajan are furnished in the Explanatory Statement to the Notice of the Annual General Meeting pursuant to Section 102 of the Companies Act, 2013. The Board recommends her appointment. - Ms. Debarati Sen was appointed subject to the requisite approvals from the Members and the Central Government, as Additional Director and as Managing Director of the Company for a period of five (5) years from June 1, 2016 in place of Mr. Amit Laroya. The Board of Directors welcomes Ms. Debarati Sen to the Board. The details of Ms. Debarati Sen are furnished in the Explanatory Statement to the Notice of the Annual General Meeting. The Board recommends her appointment. She will be a Key Managerial Personnel of the Company from June 1, 2016. - Mr. Amit Laroya shall cease to be the Managing Director of the Company from the closing hours of May 31, 2016 consequent upon his appointment as Managing Director of 3M Korea. The Board expresses its deep appreciation of the valuable contributions made by Mr. Laroya during his tenure as Managing Director of the Company to the progress of the Company. Mr. Laroya will continue as Non-Executive Director of the Company. - Mrs. Sadhana Kaul resigned as Director of the Company with effect from the closing hours of May 27, 2016 due to her pre-occupation and other commitments. The Board expresses its appreciation of the contributions made by Mrs. Kaul during her tenure as Director of the Company. - Mr. Bharat Shah was appointed as Chairman of the Board. The Board of Directors welcomes Mr. Bharat Shah as new Chairman of the Board. Mr. Ramesh Ramadurai, Non-Executive Non-Independent Director will retire by rotation at the ensuing Annual General Meeting and being eligible ofers himself for re-appointment. The details of Mr. Ramesh Ramadurai are given in the Explanatory Statement to the Notice of the Annual General Meeting. The Board of Directors recommends his re-appointment. Mr. Sameer Agarwal ceased to be Chief Financial Officer (CFO) with effect from the closing hours of March 31, 2016 and Mr. Panagiotis Goulakos (Panos), was appointed as CFO from March 15, 2016. As at the financial year ending March 31, 2016, Mr. Amit Laroya, Managing Director, Mr. B.V. Shankaranarayana Rao, Whole-time Director, Mr. Panagiotis Goulakos (Panos), Chief Financial Officer and Mr. V. Srinivasan, Company Secretary and Compliance Officer, are the Key Managerial Personnel of the Company. COMPOSITION OF AUDIT COMMITTEE As at the financial year ending March 31, 2016, the Audit Committee of the Company consisted of three (3) Non-Executive Independent Directors and one (1) Non-Executive Director and all of them have financial and accounting knowledge. The members of the Committee are Mr. Biren Gabhawala (Chairman), Mr. B. S. Iyer (up to March 31, 2016), Mr. Bharat Shah and Mr. Manuel B Pardo. The Board has accepted all the recommendations of the Audit Committee during the year under review. NOMINATION AND REMUNERATION COMMITTEE POLICY The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and for other employees and their remuneration. The same has been disclosed in the website at <http://solutions.3mindia.co.in/wps/portal/3M/en> IN/about-3M/information/corporate/financial-facts/summary/. The composition, criteria for selection of Directors and the terms of reference of the Nomination and Remuneration Committee is stated in the Corporate Governance Report. VIGIL MECHANISM / WHISTLE BLOWER POLICY The Company has also established an effective vigil mechanism by way of Business Conduct Concern Reporting Policy (Whistleblower Policy) for upholding 3M's Code of Conduct. The details of the said Policy are stated in the Corporate Governance Report and also available on the website of the Company <http://solutions.3mindia.co.in/wps/portal/3M/en> IN/about-3M/information/corporate/ financial-facts/summary/. INTERNAL FINANCIAL CONTROLS AND THEIR ADEQUACY The Directors had laid down internal financial controls to be followed by the Company and such policies and procedures adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. 3M globally is aligned to Company's internal control over financial reporting based on the framework established by the Committee of Sponsoring Organizations of the Tread way Commission(COSO) in Internal Control — Integrated Framework (2013). The internal control framework essentially has two elements viz., (1) structures, policies and guidelines designed to achieve efficiency and effectiveness in operations and compliance with laws and regulations and (2) an assurance function provided by Internal Audit. The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use or losses, executing transactions with proper authorization and ensuring compliance of corporate policies. The Company, through its own Corporate Internal Audit Department, carries out periodic audits to cover all the offices, factories and key areas of business segments based on the plan approved by the Audit Committee and bring out any deviation to internal control procedures. The Internal Auditor functionally reports to the Audit Committee and administratively to the Managing Director. The observations arising out of audit are periodically reviewed and compliance ensured. The summary of the Internal Audit observations and status of the implementation is submitted to the Audit Committee of the Board of Directors. The status of implementation of the recommendations is reviewed by the Committee on a regular basis and concerns, if any, are reported to the Board. The Audit Committee also meets the Company's Statutory Auditors to ascertain their views on financial statements including the financial reporting system, compliance to accounting policies and procedures, the adequacy and effectiveness of internal control system. DIRECTORS' RESPONSIBILITY STATEMENT To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134(3) (c) of the Companies Act, 2013: (a) that in the preparation of the annual financial statements for the Financial year ended March 31, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any; (b) that such accounting policies as mentioned in Notes to the Financial Statements have been selected and applied consistently and judgment and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2016 and of the profit of the Company for the year ended on that date; (c) that proper and spiciest care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (d) that the annual financial statements have been prepared on a going concern basis; (e) that proper internal financial controls were in place and that the financial controls were adequate and operating effectively; (f) that systems to ensure compliance with the provisions of all applicable laws were in place and were adequate and operating effectively. INFORMATION ON THE FINANCIAL PERFORMANCE / FINANCIAL POSITION OF THE SUBSIDIARIES / ASSOCIATES/ JOINT VENTURE The Company does not have any Subsidiaries/Associates/Joint Venture. EXTRACT OF ANNUAL RETURN The details forming part of the extract of the Annual Return in form MGT 9 is annexed herewith as "Annexure C". SECRETARIAL AUDIT Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company appointed Vijayakrishna K.T, Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit Report is annexed herewith as "Annexure D". There were no qualifications in the Secretarial Audit report for the year ended March 31, 2016. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The Information on Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo stipulated under Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014 is annexed as "Annexure E". DEPOSITS During the year under review, the Company has neither accepted nor renewed any deposits from public within the meaning of Section 73 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS There are no significant and material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS During the year under review, the Company has not given any Loan, provided any guarantees or made any Investments covered under Section 186 of the Companies Act, 2013. RISK MANAGEMENT POLICY The Company has a Risk Management Policy pursuant to the requirements of Listing Regulations. The details of Committee and its terms of reference are set out in the Corporate Governance Report forming part of the Board's Report. CORPORATE SOCIAL RESPONSIBILITY As part of its initiatives under Corporate Social Responsibility (CSR), the Company has undertaken projects in the areas of Education, Innovation and Women Empowerment. These projects are in accordance with Schedule VII to the Companies Act, 2013. ? In Education :The Company worked with NGO partners to inculcate the spirit of inquiry and innovative thinking among underprivileged children. We work with the Agastya Foundation on the Mobile Science Lab initiative which helps disseminate scientific practical knowledge to 100 Government schools in 2 states in India (Karnataka and Maharashtra), sparking curiosity among 20,000+ children. ? Women Empowerment: The Company's vision is to help develop leadership skills to empower underprivileged women though entrepreneurship and local governance. The Company works with two reputable NGOs in Bangalore to deliver a skills development program which is equipping more than 150 young women with the necessary skills to make them employable. ? Social Innovation: As a way to contribute to the innovation eco-system in the country, the Company supports young innovators in the age group of 18 to 30 years with an Incubation Fund and Awards Program, jointly with the Confederation of Indian Industries (CII). The program identifies unique innovations that can help solve social challenges in India. The award winners are offered grants by the Company to pursue their projects and develop prototypes for further development. The Annual Report on CSR activities is annexed herewith as "Annexure F" including the reasons for not spending the full amount for the year 2015-16. RELATED PARTY TRANSACTIONS (RPTs) All Related Party Transactions (RPTs) that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. All RPTs are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committee is obtained on a yearly basis for the transactions which are of a foreseen and repetitive nature. A statement giving details of all RPTs is placed before the Audit Committee for their approval on a quarterly basis. The policy on RPTs as approved by the Board is uploaded on the Company's website at <http://solutions.3mindia.co.in/wps/portal/3M/en> IN/about-3M/information/corporate/ financial-facts/summary/. The Company being a part of 3M conglomerate, has rights to carry out the business within India and accordingly, has access to Group's synergies, state of art products and technologies, competencies and "3M" brand name which are very critical and essential to carry out its business operations more efficiently in an increasingly globalized and competitive scenario. As a part of its regular business, the Company purchases, avails/renders services from/to 3M Company, USA at arm's length basis. As per the provisions of the Companies Act, 2013 and Lasing Regulations, all RPTs require approval of the members by an ordinary resolution. Based on past trend, the transactions with 3M Company, USA(Holding Company) are likely to exceed 10% of the annual turnover of the Company as per the last audited financial statements of the Company and may exceed the materiality threshold as prescribed under the provisions of Listing Regulations. Thus, in terms of Listing Regulations, these transactions would require approval of the members. The RPTs are necessary, normal to business, plays a significant role in the Company's business operations and also form integral part of the Company's business. An analysis of all the RPTs entered into / by the Company and the basis of charge was undertaken through a third party professional firm. Accordingly, the Board recommends for the approval of the members in terms of the provisions of Listing Regulations. The Form No. AOC-2 is annexed herewith as "Annexure G". ANNUAL BOARD EVALUATION Pursuant to the provisions of the Companies Act, 2013 and The Listing Regulations, the Board has carried out an annual performance evaluation of its own performance, its Committee and the Directors individually. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report. HUMAN RESOURCES Your Company considers people as its biggest assets and is at the heart of its human resource strategy. It has put concerted efforts in talent management and succession planning practices, strong performance management and learning and training initiatives to ensure that your Company consistently develops inspiring, strong and credible leadership. Your Company has established an organization structure that is agile and focused on delivering business results. With regular communication and sustained efforts, it is ensuring that employees are aligned on common objectives and have the right information on business evolution. As at March 31, 2016, the Company had employee strength of 1,388 personnel. PARTICULARS OF EMPLOYEES Pursuant to Section 197(12) of the Companies Act, 2013 and Rule 5(1) (2) & (3) of the Companies (Appointment & Remuneration) Rules, 2014, details / disclosures of Ratio of Remuneration to each Director to the median employee's remuneration is annexed herewith as "Annexure H". Further, the Statement showing details of employees of the Company employed throughout the year and employees employed for part of the year who were in receipt of remuneration of Rs. 60 Lakhs or more per annum / Rs. 5 Lakhs or more per month is annexed herewith as "Annexure I" DECLARATION FROM INDEPENDENT DIRECTORS The Company has received necessary declaration from each Independent Director of the Company under Section 149(7) of the Companies Act, 2013, that they meet the criteria of their Independence laid down in Section 149(6) of the Companies Act, 2013 read with Listing Regulations. The same is annexed herewith as "Annexure J". STATUTORY AUDITORS Messrs. Lovelock & Lewes have been the Statutory Auditors of your Company since 1995. As you may be aware, at the Annual General Meeting (AGM) of the Company held on August 4, 2015, Messrs. Lovelock & Lewes were appointed as Statutory Auditors for a period of two years viz., FY 2015-16 & 2016-17 (subject to reification by the shareholders at the AGM in 2016) in line with the provisions of Section 139 of the Companies Act, 2013 ("Act") read with Companies (Audit and Auditors) Rules, 2014. Subsequent thereto, Messrs. Lovelock & Lewes informed us of the rotation of assigned partner as part of its internal policy for the financial year 2016-17. As the new Statutory Auditors for the Company were to be appointed under the Act for the FY 2017-18 onwards, it was considered desirable to have the new Statutory Auditors appointed from the financial year 2016-17 itself. This was deliberated between the Company and Messrs. Lovelock & Lewes and was unconditionally agreed by both, so as to ensure and facilitate smooth transition of audit work. Accordingly, a written confirmation vide letter dated May 19, 2016 from Messrs. Lovelock & Lewes was received. Pursuant to the above, the Company has identified Messrs. BSR & Co., LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/ W-100022), Bangalore- 560071 as new Statutory Auditor. The Company has received a Special Notice under Section 140(4) (i) of the Companies Act, 2013 read with Rule 23 of the Companies (Management and Administration) Rules, 2014 from 3M Company, USA, shareholder holding 75% of total share capital proposing the name of Messrs. BSR & Co., LLP, Chartered Accountants, for appointment as Statutory Auditors for a period of 5 years (effective from the Financial Year 2016-17) from the conclusion of the 29th Annual General Meeting. Messrs. BSR & Co. LLP, Chartered Accountants have furnished their eligibility certificate under Section 141 of the Companies Act, 2013. As required under the Listing Regulations, Messrs. BSR & Co. LLP, Chartered Accountants have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India. The Board of Directors of the Company on the recommendation of Audit Committee have appointed Messrs. BSR & Co., LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/W-100022), Bangalore- 560071 as Statutory Auditors of the Company, subject to the approval of the members of the Company at the ensuing Annual General Meeting. The Notice of AGM contains a business to this effect for your approval. Messrs. Lovelock & Lewes, over many years, have since 1995 successfully met the challenge that the size and scale of the Company's operations posed for auditors and have maintained the highest level of governance, rigout and quality in their audit. The Board of Directors wishes to place on record its deep appreciation and gratitude to Messrs. Lovelock & Lewes for their guidance and support as Statutory Auditors of the Company. COST AUDIT Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014, the cost audit records maintained by the Company in respect of the products covered under the said rules are required to be audited by a Cost Accountant. Accordingly, the Board of Directors of the Company at its meeting held on May 27, 2016 on the recommendation of the Audit Committee, approved re-appointment of Messrs. Rao, Murthy & Associates, Cost Accountants, Bangalore, (holding Registration No. 000065), to conduct the audit of the cost records of the Company for the financial year ended March 31, 2017 on an remuneration of Rs. 430,000/- plus service tax as applicable and out of pocket expenses at actuals. The Audit Committee has also received a certificate from the Cost Auditor certifying their independence and arm's length relationship with the Company. As required under the Companies Act, 2013, the remuneration payable to the Cost Auditor is required to be placed before the Members in a General Meeting for their ratification. Accordingly, a resolution seeking ratification of the remuneration payable to Messrs. Rao, Murthy & Associates, Cost Accountants, Bangalore is included in the Notice convening the Annual General Meeting. Disclosure on cost audit: For the financial year ending March 31, 2015, the due date of filing the Cost Audit Report submitted by Messrs. Rao, Murthy & Associates, Cost Accountants, Bangalore, was September 27, 2015 and the same was filed with the Ministry of Corporate Affairs on September 24, 2015 vide SRN No. S39552641. OTHER DISCLOSURES • The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. The following is a summary of sexual harassment complaints received and disposed off during the year 2015-2016: No of complaints received: 2 No of complaints disposed off: 2 • There were no qualifications by the Auditors in their report forming part of this financials for the year ended March 31, 2016. • During the year under review, the Company has not bought its own shares nor has given any loan to the employees (including KMPs) of the Company for purchase of the Company shares. • During the year under review, no Commission or Remuneration was paid to the Executive Directors from Holding / Subsidiary Companies. LISTING WITH STOCK EXCHANGES The Company has paid the Annual Listing Fees for the year 2016-2017 to National Stock exchange of India Limited (NSE) and BSE Limited (BSE) where the Company's Shares are listed. The new SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 came into effect from December 1, 2015 with a view to consolidate and streamline the provisions of the Lasing Agreement for different segments of capital markets to ensure better enforceability. The Company has complied with the said Regulations by entering into new Listing Agreement with BSE and NSE. EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS The Company has only one class of share, i.e., equity share with a face value of Rs. 10 each. The Authorized/Issued/Subscribed and fully paid-up Capital as at March 31, 2016 was Rs. 11,26,50,700 (divided into 1,12,65,070 equity shares of Rs. 10 each).During the year under review, the Company has not issued shares with differential voting rights nor granted stock options nor sweat equity. ENVIRONMENT, HEALTH AND SAFETY Compliance with relevant regulations and 3M Global Environmental, Health and Safety policies is an integral part of the Company's operating philosophy and the Company stands committed to continually improve on these objectives. There was a considerable focus on improving Environment, Health and Safety during the period under review by the Company. Environment: The Company has three (3) Manufacturing Plants in operation in India. All three (3) plants have environmental management systems certified to ISO 14001: 2004. The Company continuously endeavors to improve on environmental management to minimize the environmental impacts. All plants have sewage / waste water treatment plants and the treated water is recycled for horticulture within the facilities. The plants have set up various measures to reduce and reuse water where ever possible. The plants have also installed rain water harvesting systems to divert the rain water for ground water recharging. With the approval from local Pollution Control Boards, plants have now started sending industrial waste to cement companies to generate energy instead of in-house incineration and thereby reducing overall carbon foot prints by saving the part of the coal consumption of cement plants. As part of World Environmental day initiative, the plants have taken up various environmental awareness programs including tree plantation in plants as well as public places. Health and Safety: All three (3) manufacturing plants have health and safety management systems certified to OHSAS 18001: 2007. All plants have dedicated safety officers supported by Corporate EHS. Plant Safety committees, which include shop floor employees and chaired by Plant managers, are in place and meet regularly to review issues impacting plant safety and employees health. High risk operations are controlled through the hierarchy of controls identified through 3M's risk prioritization matrix initiative. Key measures like conducting training programs on various health and safety issues including dealing with epidemics, ergonomics, industrial hygiene, process safety management, machine guarding, work safety, road safety, first-aid, manual handling etc. have been implemented. Regular health checkup of the plant employees is carried out. Every year plants celebrate safety month in March and conduct various safety awareness programs like safety quiz, drawing competition, slogan and hazard identification competition. All plants have full-fledged emergency communication and management systems including fire alarms, fire hydrants and fire sprinklers. Regular mock drills are conducted to check the adequacy and preparedness of these systems. The plants have a well-equipped first aid rooms to attend to immediate medical needs. During this period under consideration, there were no lost time accidents across three plants. 3M Ahmedabad plant has been audited by 3M Global EHS auditors and the auditors commended the plant for complying with 3M Global EHS policies. During this period under consideration, 3M Ranjangaon plant received National Safety Systems Excellence award from FICCI, post a rigorous site audit and review by FICCI safety experts. AWARDS AND RECOGNITION • 3M India Ranjangaon plant's commitment to stringent safety systems at the workplace earned national recognition with the FICCI "Safety Systems Excellence Award". The award recognizes companies for the robustness of their safety systems and not for performance alone. The selection across Indian companies is conducted through a rigorous four-stage process which includes on-site audit by safety experts and a final selection by the Hon'ble Jury for the awards. • 3M India received various awards for demonstrating quality & technical excellence for some of the Company's key account customers. The Company was awarded a "Certificate of Appreciation for Outstanding Support in Sales Promotion" by Honda Cars at their Annual Supplier convention. Toyoda, a supplier of Toyota, recognized the Company for outstanding effort and commitment in the area of quality and delivery. Honda Motorcycle and Scooters also recognized 3M India for outstanding contribution towards Honda's two-wheeler business. • 3M India's top consumer brand, Scotch-Brite® released a television commercial last year which was selected for the best advertisement award in the home care category at the first edition of the IndIAA Awards. These awards were instituted by the India Chapter of International Advertising Association. The awards recognized 16 brands from a final shortlist of 76 nominees that were selected from over 500 entries by an eminent panel of business and brand leaders. • 3M India Ranjangaon plant received 3M Corporate recognition for quality and manufacturing excellence with global awards for 3 projects - 1 for quality achievement and 2 for process technology excellence. • 3M India also received accolades for excellence in marketing, innovation and support functions with regional awards. ACKNOWLEDGEMENT The Board wishes to place on record its appreciation to all employees in the Company, for their sustained efforts and immense contributions to the good levels of performance and growth that your Company has achieved during the year. The Board also acknowledges the continued support and co-operation received from 3M Company, USA. The Directors express their gratitude to the Central Government and the State Governments of Karnataka, Maharashtra and Gujarat for the support given to the Company. The Directors also thank all customers, dealers, suppliers, banks, members and others connected with the business of the Company for their co-operation. On behalf of the Board of Directors Amit Laroya Managing Director DIN: 00098933 B.V. Shankaranarayana Rao Whole-time Director DIN:00044840 Place : Bangalore Date : May 27, 2016 |