MANAGEMENT DISCUSSION AND ANALYSIS FORWARD-LOOKING STATEMENTS Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company's actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. 1. Global Economy Global growth in 2015 again fell short of expectations, slowing to 2.4 percent from 2.6 percent in 2014. The disappointing performance was mainly due to a continued deceleration of economic activity in emerging and developing economies amid weakening commodity prices, global trade, and capital flows. Going forward, global growth is projected to edge up, but at a slower pace than envisioned in the June 2015 forecast, reaching 2.9 percent in 2016 and 3.1 percent in 2017-18. The forecast is subject to substantial downside risks, including a sharper-than-expected slowdown in major emerging and developing economies or financial market turmoil arising from a sudden increase in borrowing costs that could combine with deteriorating fundamentals and lingering vulnerabilities in some countries (source: www.worldbank.org) 2. Indian Economy Economic growth in India accelerated in Fiscal Year 2015 despite a double-digit decline in exports. It is projected to dip marginally in FY2016 due to a slowdown in public investment, stressed corporate balance sheets, and declining exports, then pick up in FY2017 as newly strengthened bank and corporate finances allow a revival in investment. Notwithstanding unexpected delays in enacting some economic reform, the prospects for continued rapid growth are undiminished (source: <http://www.adb.org/countries/india/economy>) 3. Industry Structure & Developments Flexible packaging has been one of the fastest growing sectors in the packaging industry over the past 10 years, thanks to increased consumer focus on convenience and sustainability; this rapid development will continue to accelerate. Flexible packaging offers all properties needed for primary packaging such as lightweight, high performance, high barrier, low contamination, keeping the product completely sealed off from the environment. Flexible packaging products use far less material than rigid packaging options and also consume smaller space during packaging and on shelves in retail outlets. Flexible packaging also offers a number of sustainability advantages including low raw material consumption owing to light weighting thus leaving lesser carbon footprint. Flexible packaging paves way for reduced energy usage at manufacturing, transportation and disposal stages besides producing relatively low waste produced as compared to conventional packaging formats. Flexible packaging is the most economical method to package, brserve and distribute food, beverages, other consumables, pharmaceuticals and other products that need extended shelf life. It can be designed with barrier properties tailored to fit the products being packaged keeping in mind the end-use, whereas other packaging formats generally provide a one-size-fits-all approach. Flexible packaging can now be made in a wide variety of innovative shapes, sizes and appearances, and can include components such as handles and opening and reclosing features such as zips and spouts to name a few. Changing consumer lifestyle has increased dependence on processed, br-cooked and packed foods, which also mobilized the entire flexible packaging supply chain to sync product offering as per end customer's requirement. The flexible packaging industry has witnessed introduction of new and efficient films that are used in flexible packaging. Modified Atmosphere Packaging (MAP), vacuum skin packaging are some of the current trending packaging solutions which have been developed to meet end customer demand. Flexible packaging technology has advanced dramatically over the past 10 years and is now a consumer household mainstay, steadily moving into new markets and applications. Products have progressed from simple monolayer bags and wrappings to coextruded or laminated engineered multilayer and coated constructions, comprising multiple materials such as plastics, paper and metal foils, coatings and other additives. These developments provide properties such as high barrier to oxygen, extended shelf life and convenience, all of which are increasingly demanded in packaging for food, consumables and pharmaceuticals. The properties of flexible packaging can be tailored to provide specific combinations required for packaging a broad range of products. The total global market for flexible packaging is forecast to grow at an annual average rate of 3.4% during the period 2015-2020, reaching $248 billion. Food packaging occupies over 70% of the global consumer flexible packaging market; it is growing by 4.0% on average in volume terms and reached over 18.8 million tonnes in 2015. Whilst Asia-Pacific and Western Europe have enjoyed the largest areas of growth over the period 20102014, sales of consumer flexible packaging have been growing at a high average annual rate in Asia-Pacific and Eastern Europe.(source; www. smitherspira.com) The global flexible packaging market is segmented based on end user, packaging types, printing processes, material, and geography. By end user type, the global flexible packaging market is segmented into consumer products, industrial, medical & pharmaceuticals, retail food, retail nonfood, institutional food, institutional non-food, and others. By packaging type, the global flexible packaging market is segmented into stand-up pouches, flat pouches, converted roll-stock, gusseted bags, wicket bags, laminated flexi-tubes, aseptic cartons/ packs, big bags and others. By material type, the global flexible packaging market is categorized into polypropylene (pp), polyethylene (pE), polyethylene Terephthalate (pET), poly Vinyl Chloride (pVC), Ethylene Vinyl Alcohol (EVOH), polyamide (pA),and others (paper, aluminum, and cellulosic) By geography, the global flexible packaging market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Currently, North America dominates the global flexible packaging market in terms of revenue share. However, Asia Pacific is expected to expand at the fastest growth rate in the global flexible packaging market owing to the rising disposable income, and rising demand, and changing packaging trends in the end user sectors, which are expected to have a positive impact on the global flexible packaging market. Currently, rising population and the significant demand for beverages, packaged foods, pharmaceuticals, and personal care products are driving growth of the flexible packaging market in countries such as India and China, whereas the North American flexible packaging market is expected witness moderate growth in the coming years, due to the highly saturated end-use market globally. 4. Business Review Packaging Film Business The main products of this business are Opp Films, polyester Films, Metalized & Specialty films and Polyester Chips of different grades etc. The Company's OPP films comprising BOPP (Bi-axially Oriented polypropylene) and Cpp (Cast Polypropylene) films are highly cost effective and functionally efficient and have rapidly penetrated into high barrier sensitive packaging segment across the world. It is primarily being used for applications in packaging food products such as tea, coffee, confectionery, biscuits, bakery, pasta, dried foods, meats and others. The technologically superior and highly dependable BOPP film can be structured up to three layers and tailored for almost any machine requirements and is capable of meeting both Rotogravure and Flexography printing standards. The Company produces BOPP film from its Indian plant which largely caters to the captive & domestic market and Egypt plant which caters to the international market. The CPP film is highly dynamic and versatile with high gloss, greater transparency, better heat sealability, good twisting property and better tear strength. These factors provide its application in food wraps, anti wraps, anti fog, garment bags, deep freeze applications, etc. Presently CPP film too is produced from Indian plant and caters to captive consumption & Indian market. The Cpp plant in Egypt caters to the international market. BOPET films with different range of microns (thickness) have the capacity to sustain high fidelity graphics and meet the requirements of both rotogravure as well as flexography printing standards besides having properties like optical brilliance, clear appearance, unequaled mechanical strengths and toughness, excellent dielectric properties good flatness and coefficient of friction (COF), tear resistance and puncture resistance,, excellent dimensional stability over a wide range of temperature, good resistance to most common solvents, moistures, oil and grease and excellent barrier against a wide range of gases among others. BOPET film is produced from India, Dubai, Mexico, Poland, Egypt & USA. Indian plants meet captive & Indian market requirements whereas overseas plants serve overseas markets across the globe. The Company also has the facility to produce polyester chips of film grade, yarn grade and bottle grade. The film grade chips are used as raw material for manufacturing polyester films whereas yarn grade chips are used for manufacturing polyester yarn and bottle grade chips for production of PET bottles. The Company has made use of its state-of-the-art batch processing manufacturing facilities set up in India, by conveniently switching over to produce different grades of chips based on the demand and orders at hand. The Company manufactures a wide range of polyester chips suitable for various applications. Through continuous R&D efforts, the Company has developed different speciality polyester chips, which have been well accepted in the Indian and International market. Presently the Chip Unit also caters to the requirement of the Specialty Chips of Company's overseas Subsidiary Companies. Flexible Packaging Business The main products of this business are laminates made of various combinations of Polyester, BOPP, poly, metalized & hologram films and others in roll form and in various brformed pouches & bags of many sizes, laminated flexi-tubes, rotogravure cylinders for various types of rotogravure printing, Anilox/Coating, rollers for flexo printing, elastomers & sleeves, Shims for holographic embossing and holograms, other anti-counterfeiting and brand protection solutions (to keep look-alikes at bay from eroding brand equity of customers), printing inks, adhesives, coatings, polyols, packaging & converting machines. This business entails customization according to the needs of customers globally. The Company has the technical ability and innovative skills to design structures and barrier properties. The Company is one of the world leaders producing bespoke world class flexible packaging solutions that: • Enhance market performance of the product through enhanced packaging aesthetics, barrier properties, pack functionalities and anti- counterfeiting properties; • Improve utility for the end user through innovation to create value added differentiation; • Replace out-moded options with versatile, sustainable and cost-effective solutions The Company offers finished packaging of a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, desert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinades & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering components etc. Thus the company currently offers flexible packaging solutions for solids, semi-solids, powders, granular materials, viscous fluids, pastes and gels. With the aseptic packaging plant for packing liquid products going operational in early 2017 at Sanand, Gujarat, the company will complete the entire bouquet of product offering. Some New Products: The KOHINOOR Bag is used for packaging of brmium rice. The special feature of this bag is an anti-slip device that brvents the bags from slipping over each other and off the stack when stacked one over the other on its flat face for unitizing (stacking, palletizing, stretch/shrink wrapping and secondary packaging), during transportation and during display on the shelf. The anti-slip property is achieved by using a special micro-embossing process on the finished laminate prior to bag making. The micro embossing is registered so as to appear only on the central portion of the bag and is not visible when viewed normally. Therefore, it does not affect the graphics in any way. Also it is so designed that it does not physically puncture the film surface therefore barrier properties remain unaffected and there is no development of micro-pores that allow microorganisms to enter the package. The embossing delivers a very high coefficient of friction that brvents any slippage of bags when stacked several feet high. Conventional flexible film laminate bags create problems in handling due to slipping of bags off a stack of bags during secondary packaging, unitizing / palletizing, transportation and display as a stack at the point of display / sale. This package obviates slipping. This product addresses a long- standing problem with film laminate bags for "bulk" packaging applications. It offers a much more effective solution than using coatings or additives and offers trouble-free handling and stacking of bags. The BIRLA WALLCARE package is a Woven Polypropylene (WPP) stand-up bag used for packaging 40 kgs. of White Cement Based Putty. The special feature of this bag is that it comes with a hermetically sealed block bottom and block top construction. The top construction incorporates a valve for filling; the valve is hermetically heat-sealed for closing after filling. The bag is made from a flexible laminate with a high-definition reverse printed BOPP film / woven polypropylene (WPP) fabric / sealant construction. The block bottom and block top construction is created during bag-making and is hermetically sealed to provide high barrier, to brvent water / moisture ingress and to brvent seepage of product. The bag attains a cuboid shape after filling and can both stand up on its own and be stacked one above the other on the flat front and rear sides for unitization, secondary packaging, palletisation, transportation and storage / display during distribution and sale. It is easily recyclable and highly sustainable. The bag system provides feasibility for high-barrier bulk packaging, hitherto the brserve of rigid systems. It also provides water-proofing and delivers outstanding shelf-impact and superior graphics as compared to any other bulk packaging system and superior stand-up facility and stackability. This bag system is the first single-component high-barrier, waterproof bulk packaging system that stands up well and is easily stackable on either its side or along its height. It offers distinctly superior graphics/ aesthetics and shelf-impact as compared to any other bulk packaging system. It is also easily recyclable and high sustainable. Flexfresh™ uses the Equilibrium Modified Atmospheric Packaging (EMAP) technology to offer shelf life extension solutions to the fresh produce industry. This solution entails maintaining consistent oxygen and carbon dioxide inside the bag during the shelf life of the produce. Uflex with the help of the foreign technology partner conceived the holy grail of oxygen and water barrier for packaging fresh produce. Flexfresh™ while maintaining the humidity inside the bag at 98%, keeps the product absolutely dry without allowing condensation of the humidity. This results in very low weight loss of the produce as it continues to breathe in hydrated oxygen available inside the bag. In several experiments on various products, it was observed that the ratio of oxygen and carbon dioxide has always been maintained at equilibrium. The film provides good release characteristics of carbon dioxide emitted by the produce. Over and above the gamut of benefits that it offers, Flexfresh™ film is biodegradable by composting. Thus Flexfresh™ complies with all international regulations for overall migration (EC 1935/2004), reach compliance (EC 1907/2006) and qualifies for biodegradation under DIN EN 13432 (2000-12). Printing Cylinder: The main activities of the Cylinder business is to produce Rotogravure Cylinders for various types of Rotogravure printing, Anilox/Coating Rollers for flexo printing and Shims for holographic embossing. The printing Cylinders business of the Company is one of the largest in India. These cylinders are made for captive consumption as well as for domestic and international sales. Printing Cylinder is at the core of the Rotogravure Flexible printing and the Company has capabilities to provide complete solution starting from Artwork/Mock up stage to producing final printing cylinders. The Company has bought special software for making specialized Cylinders up to 2.5 meters. The same can be used for vinyl flooring, wood grains, Textile & various other specialised purposes. Zero discharge system with effluent treatment plant was installed to stop draining of waste chemical(s) after treatment. The Company saves foreign exchange by developing in-house copper additive for copper plating. It is also having a proofing system which can print on actual substrate without engraving the Cylinders. The Company has commissioned a robotic plant for producing gravure cylinders at Noida plant. This plant based on technology from Think Laboratory - Japan has reduced the cumbersome operation of manufacturing rotogravure cylinders to a one-man operation. Using this technology, high definition chrome plated printing cylinders are made from the steel base. Flexographic plates: Flexographic plates, like letterbrss plates, are relief plates with image elements raised above open areas. They are elastomeric in nature in contrast with hard letterbrss plates. They use rotary brsses and low viscosity inks. Flexographic plates have a Shore A durometer hardness of 25-55 versus durometer readings in excess of 60 for letterbrss plates. The process was originally called aniline printing because of the aniline dye inks that were first used in the process. Coarse surfaces such as corrugated board and stretchy films can economically be printed only with this process. Flexography leaped into prominence with the introduction of cellophane as a packaging material. Flexo proofbrss (Wet Proof): Introduced first time in India, this is capable of proofing on actual substrate with actual ink and plates. prior to printing, jobs can be proofed to obtain the approval from the customer. It saves lot of brss time & wastage of plates. Digital Plate Cutting Table: This equipment can cut Flexo plates either straight or Staggered to the finished size, when mounted on plate sleeve the joining will be more brcise. This can cut Flexo plates as well as paper board and rubber blanket. Solvent Recovery Plant: Recycling of used solvent can be recovered by up to 90% through this Equipment and same can be reused in the washout process. Moreover waste of this process can also be used as fuel for our incinerator, furnace etc. Laser: The Company has recently installed Direct Laser Engraving System (by M/s Schepers - Germany, a pioneer in laser techniques) with 4 beam facility through which High Resolution Images, High Definition Pictures & Fine Text can be achieved. It leads to achieve up to 10,000 dpi. With this facility the Company is able to engrave Solid background & Fine Text and Straight Line Text for paper & Board packaging especially for Tobacco & Cosmetic Industry. Flat Top Dot Insert Gas Technology: At the time of exploring the flexo plate, the oxygen is eliminated and chamber is filled with Nitrogen giving firm shoulder and flat tops to the dot for better printability / ink transfer, least dot gain while printing, to avoid the oxidization of the dots. New Imaging Engine: 8 beam laser with 50 watts power enables near circular imaging of the dots and attending higher speed to attain the consistent dot reproduction at the time of printing. The Company can also achieve High-Definition Half Tone results, 3D pictures, Micro Texts, Nano Texts, Hidden Texts and Security Features with 3D effects. The Company is able to make special cylinders e.g. Embossing Rollers, Mica Vinyl Rollers, Textiles, Match Box and Tissue & paper Napkin etc. The Company can also get low & high depth cylinders to deposit (0.5 gsm - 40 gsm) coating. Holographic Solutions: The Company offers state of the art contemporary anti-counterfeiting and brand protection solutions such as Thermal Holography film, Cold foil, Unigram, Latentogram and Fresnel lens to keep look-alikes from eroding the brand equity of clients. The wide range of products caters to many diversified industries such as FMCG, pharma, Confectionary, Liquor, Textile, Tobacco, packaged Foods etc. and are well accepted both by the Government and private Organizations across the country. The Company through its impeccable marketing and enviable reach always has the pulse of the market and customers to constantly develop innovative customized solutions. With a strong in-house capability in R&D, the Company is committed to refine and constantly upgrade the processes and products being manufactured which are either unique or offer affordable import substitution. Our fully equipped research laboratory is a result of core technical strength & commitment to manufacturing holography and related products making it an 'all in house' scenario. Hologram being low cost with better margin, adds to the bottom line significantly besides adding value to the customers' brand and boosting company's image. Inks, Adhesives, Speciality Coatings and Polyols: The Company has indigenously produced the new generation cost effective polyester base solvent less adhesive system for flexi pack, new ink system for PVC profile and special coating for producing matt effect in laminates. The company enjoys the distinction of being a complete solution provider for flexible packaging industry in terms of printing inks and binding needs of laminates. Company's wide range of proven products is compatible with all kinds of substrates and machines instilling confidence in our customers. Apart from flexible packaging, the adhesives also serve footwear and foam industries. Packaging and Converting Machines: The Company also manufactures customized need- based packaging and converting machines. The ongoing process of innovation and introduction of machines through its in-house R&D facilities, having unique features and facilities for packaging products of different varieties enables the Company to manufacture both general machines as well as customized machines designed to suit the needs and requirements of various customers both in India and abroad. The Company has made very specialized high speed state-of-art technology Rotary machines working at very high speed. The Company is also working to make Cement Bag making machines, Pet Food Bag making machines and Asceptic packaging machines to pack and give longer shelf life to liquid products. The Company has also added specialized machine in the filed of making and sealing of WPP bag. These products will help the Company to achieve a better turnover. Company is working on specialized bigger pack packaging machines. The company has launched state-of-the-art Extrusion Lamination Machine with unrivalled features like unique design of drying hood to achieve optimum temperature; separate drive for imbrssion rollers, motorized three axis movement of carriage for air gap setting, chamber type doctor blade for anchor coating among others. 6. Expansion Project The Company is setting up facility in the State of Gujarat for manufacture and sale of Aseptic Packaging materials for liquid products with an annual capacity of 7 billion packs. The project shall be fully completed in two stages. The first stage shall comprise the built up of complete infrastructure and commissioning of all equipments and one more printing line shall be installed during Financial Year 2018-19. The first stage completion shall be commissioned & operational by end of Financial Year 2017 with capacity of 3.5 billion packs. It will further be expanded to 7 billion packs with addition of remaining one printing line in second stage by end of Financial Year 2019. The expenditure of the project for both the stages is approximately Rs. 580 crore. Land admeasuring about 72 acres has been allotted by GIDC in Sanand II, Gujarat. Site development work has been completed. Architect & Civil Contractor have been appointed. Civil work has already commenced and progressing speedily. Order for procuring main equipments has been placed. Since 72 acres of land has been procured at Sanand, the facility may also house expansion of manufacturing facilities of the Company's existing businesses. With the Aseptic Packaging plant going fully operational, company's margins will improve thereby positively impacting the bottom line. In addition to above, the Company keeps investing towards acquisition of modern equipments & machines; deploying new technologies and processes that assist in improving the efficiency and innovation of the products. The Company has plans to invest around Rs. 500 crore for this purpose between Financial Year 2015-16 and 2017-18. Opportunities & Threats Opportunities Flexible packaging market has been driving the packaging industry to new heights. Development across consumer and industrial market that uses flexible films, improvements in manufacturing practices, and continued technological innovations, the packaging market has been able to grow and evolve thereby shaping the packaging trends. As a result of the various beneficial features that come with it, right from ease of handling, storage and convenience to being economic in terms of cost savings, flexible packaging has certainly paved a strong position for itself, and is seen as a key segment driving growth of the overall packaging industry world over. The factors driving the flexible packaging market are the rise in demand and adoption of the packaging type across end-use sectors such as food and beverages and Fast Moving Consumer Goods (FMCG). Ease of packaging has made flexible packaging a perfect alternative for display and branding of retail goods, in turn driving growth of the global flexible packaging market. Backed by investments in technology and industry equipment, the industry is expected to enjoy a high growth rate in the coming years. Opportunities for the global flexible packaging market are riding on the back of rising disposable incomes. Stand -up pouches with re-closable options are spelling out ease and convenience for deferred use. Stick packages and single serve packs/unit packs are much in demand ensuring controlled portions. High oxygen and moisture barrier, metallized laminates and co-extrusions are further expected to add value to end users and therefore to brand owners. There is a growing trend for the multinational brands to source globally thereby driving M&A activities among converters. Converters are also looking at rapid expansion to reap in the benefits of the ever swelling global demand for flexible packaging. Opportunity galore is expanding for flexible packaging as it has been proved beyond reasonable doubt that this type of packaging requires much less energy during manufacturing, transportation and disposal than its rigid counterpart. Four key trends driving the flexible packaging market are: 1. Down gauging The combination of environmental brssures and high polymer prices are increasing demand for thinner films. Flexible packaging uses less resources and energy than other forms of packaging. It provides significant reductions in packaging costs, materials use and transport costs and has clear performance advantages over rigid packaging. The flexible packaging industry is expected to promote more of the 'br-cycling' benefits of these packages versus rigids as the combination of environmental brssures and uncertain polymer prices persist. 2. High-Performance Films Food packaging films are trending toward high-performance film structures that are less permeable to increase shelf life and enhance flavors. The ongoing success of flexible packaging as a replacement for glass and metal packages can be attributed directly to the substantial improvements in barrier properties of plastic films and particularly clear plastic films. 3. Consumer Convenience With increasingly busy life styles and hectic schedules, ready meals that are available in new flexible packaging formats are in a prime position to take advantage of the current social trend towards convenient mealtime solutions. Packaged fresh meat, fish and poultry consumption will grow at a faster rate than unpackaged produce to 2020. Growth in the br-sliced sector and in brmium lines has promoted growing demand for modified atmosphere (MAP) packaging. Demand for chilled food is also being driven by a greater variety of ready meals, fresh pasta, seafood and exotic meats. 4. Bio-Derived and Bio-Degradable Technologies The proliferation of bio-based packaging films continues with polylactic acid (PLA), polyhydroxyalkanoates (PHA) and poly-trimethylene terephthalate (PTMT) showing the most promise on the materials side of the equation, and thermoplastic starch (TPS) films on the petroleum replacement side. Threats Flexible packaging markets tend to by highly competitive at both the national and regional levels, often with narrow margin. The global flexible packaging industry continues to be highly fragmented although a small but growing number of multinational converters are adopting a global strategy to grow their major brand owner customers who are expanding their manufacturing footprint in emerging markets in Eastern Europe, Asia, Africa and Latin America. There is an increasing concern among consumers for environmentally sustainable packaging solutions that has made R&D towards light weighting of substrates rather ubiquitous. Converters are confronted with the daunting task of coming up with solutions that leave lesser waste and thus lower carbon foot print. The narrative on sustainability now puts a much larger onus on to the packaging manufacturers to innovate and ensure reduction at source. Worldwide more and more bio-degradable products are being used and packaging films are often considered environment unfriendly. Packaging films face significant opposition from various strata of society and are subject to severe regulatory and statutory frame although it has been proved beyond reasonable doubt that this type of packaging requires much less energy during manufacturing, transportation and disposal than its rigid counterpart. 8. Future Outlook According to Smithers pira ,the global market for flexible packaging is forecast to grow at an annual average rate of 3.4% during the period 2015-2020, reaching $248 billion. The major growth engines are the Asia-Pacific countries. Substitutions of Traditional packaging and Retail Chains are the most important drivers for the market growth. The opportunity for the market growth lies in concentrating on developing nations or emerging economies. (Source : www. bigmarketresearch.com) The players in the flexible packaging industry worldwide are increasingly coming up with innovative and effective flexible packaging products and solutions. Through the development and utilization of flexible packaging films and continual innovations, the flexible packaging sector has been able to grow and evolve to adapt to the needs of products around the glove. Flexible packaging designs such as zippers, pouring spouts, peel-off lids, and microwavable pouches provide consumers with convenience in consuming and disposing of products like never before. Such packaging designs are being increasingly produced to meet the growing consumer demand for food and beverage products that offer higher convenience and portability. Many packaging companies are planning to devise innovative products. Most of them are focused on inventing new packaging designs or attempting to redesign existing packaging. Flexible packaging by nature is highly adaptable. The clever and solution driven designs that the packaging companies are coming up with, further drives the sustainability benefit of the products which they clothe. Flexible packaging help minimize good and packaging waste by offering appropriate portion sizes and re-closable packs. The wide range of innovative flexible materials and new design concepts being introduced in this industry to minimize waste in terms of conservational and cost, attracts increasing number of customers. 9. Internal Control System, their Adequacy and operative effectiveness The Company has 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, the safeguarding of its assets, the brvention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely brparation of reliable financial information. The Company has also laid down an adequate system for legal compliances. It has created appropriate structures with proper delegations of duties and responsibilities of employees at each level on enterprise basis which ensures the proper adherence and compliance of such systems. Both the Internal Financial Control and Enterprise Legal Compliance System are subject to review by the Management in respect of their adequacy and operative effectiveness which in turn are also reviewed by the Internal Auditors, Statutory Auditors and Audit Committee. Finally, the Board of Directors of the Company also review and take note of them. 10. Risks & Concerns Risk is an integral part of business. Risk can be broadly categorized into two broad categories: one Risk Associated at the Transactional Level and the other Risk Associated at the Decision Making Level. Risk Associated at operational level can arise out of operations, financial dealings and / or compliances of legal system. The Company has appropriate control mechanism and operating effectiveness of Internal Financial Controls & Legal Compliance System. Risk Associated at the Decision Making levels are political, social & economic, technology, capital structure, foreign exchange & interest rate etc. These risk are evaluated in detail before taking any strategic & financial decision. Human Resource Development/Industrial Relations The Company's Human Resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. The Company has taken pragmatic steps for strengthening organizational competency through involvement and development of employees as well as installing effective systems for improving the productivity, quality and accountability at functional levels. With the changing and turbulent business scenario, our basic focus is to upgrade the skill and knowledge level of the existing human assets to the required level by providing appropriate leadership at all levels, motivating them to face the hard facts of business, inculcating the attitude for speed of action and taking responsibilities. The effort to rationalize and streamline the work force is a continuous process. Currently the Company has 7128 permanent employees at global level as on 31st March, 2016. The industrial relations scenario remained harmonious throughout the year. 12. Environment, Occupational Health & Safety Your Company is committed to conducting its operations with due regard to the environment and providing a safe and healthy workplace for employees. The collective endeavor of your Company's employees at all levels is directed towards sustaining and continuously improving standards of environment, occupational health and safety in a bid to attain and exceed international benchmarks |