THE COTTON TEXTILES EXPORT PROMOTION …texprocil.org/agm/63rd_Annual_report_2016-2017_Final.pdf2...

THE COTTON TEXTILES EXPORT PROMOTION COUNCILCOMMITTEE OF ADMINISTRATION 2016-2017

Shri Ujwal R Lahoti, Chairman Dr. K V Srinivasan, Vice Chairman

Shri R K Dalmia Shri Manikam Ramaswami (till 21.11.2016)

Shri Manojkumar Patodia Ms. Preeti M Sheth

Shri Arun Todi Shri Umang Patodia Shri D. L. Sharma Shri Ketan Manek

Shri K. Hari Thiagarajan Shri Aditya Krishna Pathy

Ms. Mridula Ramesh Shri Rajesh Mandawewala

Shri S. K. Khandelia Shri Prakash Shah

Shri Tushar Ruparelia Shri M Sivakkannan (from 21.11.2016)

Shri K M Poddar (from 21.11.2016) Ms. Sunaina Tomar, Joint Secretary, Ministry of Textiles (till 21.11.2016)

Dr. Subrata Gupta, Joint Secretary, Ministry of Textiles (from 21.11.2016) Dr. Kavita Gupta, Textile Commissioner

Shri Parag H Udani Shri Mukund Choudhary (till 21.11.2016)

Shri Sunil Patwari (till 21.11.2016) Shri T. Rajkumar (till 21.11.2016)

Shri S. Dinakaran Shri Naishadh Parekh (from 21.11.2016)

Shri Maninarayanan Velayutham (from 21.11.2016) Shri Ashwin Chandran

Shri Vishnukumar Jalan

EXECUTIVE DIRECTOR Dr. Siddhartha Rajagopal

AUDITORS B. K. Khare & Co.

Chartered Accountants 706-708, Sharda Chambers,

New Marine Lines, Mumbai – 400 020

INTERNAL AUDITORS Ramesh C Shah & Co. Chartered Accountants

Mumbai - 400 001

SOLICITORS Mulla & Mulla & Cragie Blunt & Caroe.

Advocates, Solicitors & Notaries Mumbai - 400 023

BANKERS State Bank of India

Bank of Baroda Punjab National Bank

ICICI Banking Corporation Ltd Kotak Mahindra Bank Punjab & Sind Bank

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NOTICE OF THE ANNUAL GENERAL MEETING

NOTICE is hereby given that the 63rd Annual General Meeting of the Members of the Council will be held at 12 Noon on Tuesday, 26th September, 2017 at Crystal (South), Hotel Taj Mahal Palace, Apollo Bunder, Colaba, Mumbai-400001, to transact the following business: -

ORDINARY BUSINESS:

1. To receive and adopt the report of the proceedings of the Committee of Administration of the Council for the year 2016-17 as per Articles 30 (c) & 71 of the Articles of Association of the Council.

2. To receive and adopt the Audited Balance Sheet and Income & Expenditure Account of the Council together with 63rd Report of the Committee for the year 2016-17, as per the Articles 30(c) & 71 of the Articles of Association of the Council.

3. To elect a Member of the Committee of Administration of the Council in the category with an Export Performance more than Rs.50 Crores.




7. To elect a Member of the Committee of Administration of the Council in the category with an Export Performance above Rs.15 Crores to Rs.50 Crores.

8. To elect a Member of the Committee of Administration of the Council in the category with an Export Performance above Rs.15 Crores to Rs.50 Crores.

9. To elect a Member of the Committee of Administration of the Council in the category with an Export Performance between Rs.5 Crores to Rs.15 Crores.

10. To appoint Auditor of the Council to hold office from the conclusion of this meeting until the conclusion of the next Annual General Meeting and to fix their remuneration.

11. To consider any other business with the permission of Chair.

By Order of the Committee

Dr. SIDDHARTHA RAJAGOPAL EXECUTIVE DIRECTOR

DIN: 06720149

Mumbai, 9th August, 2017

The Cotton Textile Export Promotion Council Engineering Centre, 5th Floor, 9, Mathew Road, Mumbai - 400 004

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ANNExURE TO ITEM NOS. 3 TO 9 IN THE NOTICE OF THE ANNUAL GENERAL MEETING

Pursuant to the amendments to the Articles of Association of the Council in the 62nd Annual General Meeting of the Council held on 21st November, 2016, the allocation of seats have been reapportioned on the basis of criterion of export performance. Accordingly, the seats in different categories of export performance have been re-drawn to meet the requirements of Article 54 of the Articles of Association of the Council as mentioned below:

Category with Export Performance “above Rs.50 Crores”:

As per article 54 of the Articles of Association,“Out of eighteen members of the Committee who are to be elected, nine members of the Committee shall only be such of the members whose export performance in the two financial years immediately preceding the election is of the value of above Rs.50 Crores”. At present there are 8 members in this category against the total strength of 9 members. Amongst them, 3 members viz. Shri S. K. Khandelia, Shri Rajesh Mandawewala and Shri Prakash Shah are due for retirement by rotation and are eligible for re-election and 1 additional vacancy arises in this category on account of the re-apportionment of seats. Hence, altogether 4 vacancies need to be filled up in this category.

Category with Export Performance “above Rs.15 Crores and Rs.50 Crores”:

As per article 54 of the Articles of Association, “Out of eighteen members of the Committee who are to be elected, six members of the Committee shall only be such of the members whose export performance in the two financial years immediately preceding the election is of the value of “above Rs.15 Crores to Rs.50 Crores”. At present there are 6 members in this category as per the stipulated strength. Amongst them, 2 members viz. Shri Manojkumar Patodia and Smt. Mridula Ramesh are due for retirement by rotation and are eligible for re-election. Hence, 2 vacancies need to be filled up in this category.

Category with Export Performance “Rs.5 Crores and Rs.15 Crores”:

As per article 54 of the Articles of Association, “Out of eighteen members of the Committee who are to be elected, three shall only be such of the members whose export performance in the two financial years immediately preceding the election is of the value of “Rs.5 Crores to Rs.15 Crores”.

Further, as per article 56(h), “The members of the Committee who retire in every year shall be those who have been longest in office since their last election”. Amongst the members in this category, Shri Ketan Manek who has been longest in office since his last election to the Committee, shall retire and is eligible for re-election.

Notes to Members:

1. A Member entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and vote on his behalf and the proxy need not be a Member of the Council.

2. A proxy in order to be valid should be duly completed, stamped, signed and lodged at the Registered Office of the Council not later than 48 hours before the meeting.

3. The facility for voting, either through electronic voting system or ballot or polling paper shall be made available (excluding item No. 3 to 9 of ordinary business of the Notice)at the meeting.

4. The Register of Members of the Council will be closed from 15.09.2017 to 26.09.2017 (both days inclusive).5. Members are requested to notify change of their address or email address.6. Members having any queries on Accounts and operations of the Company are requested to send the

same in writing before one week of the date of Annual General Meeting at the registered office of the Company or by email at [email protected] so as to enable the management to keep the information ready at the meeting.

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7. Members are requested to bring their Attendance Slip along with their copy of Annual Report to the meeting.

8. Ms. Deepa Gupta, Practicing Company Secretary, Mumbai (M.No.20860, C.P.8168) has been appointed, as the Scrutinizer for conducting the e voting process in a fair and transparent manner.

E-VOTING PROCEDURE:

In Compliance with the provisions of Section 108 of the Act and the Rules framed thereunder, the Members are provided with the facility to cast their vote electronically, through the e-voting services provided by NSDL (National Securities Depository Limited, an Agency appointed by the Council, as per Rule 20 of the Companies [Management & Administration] Amendment Rules, 2015), on resolutions only for Election of the members of the Committee of Administration of the Council, set forth in this Notice (item No.3 to 9 of ordinary business of the Notice).

The Notice of the Annual General Meeting (AGM) of the Company inter alia indicating the process and manner of e-Voting process along with printed Attendance Slip and Proxy Form can be downloaded from the link https://www.evoting.nsdl.com or www.texprocil.org.

The e-voting period commences on September 22, 2017 (9:00 am) and ends on September 25, 2017 (5:00 pm). As per article 56(j) & 58(b) of the Articles of Association of the Council, voting for election of Committee members will be through electronic means and will close one day prior to the date of Annual General Meeting. During this period, members may cast their vote electronically. The e-voting module shall be disabled for voting thereafter. Once the vote on a resolution is cast by the member, the member shall not be allowed to change it subsequently.

The process and manner for e-voting is given below. On receipt of an email from NSDL (on members’ registered email ID), please take the following action:

1. Open the attached PDF file viz., “e-Voting.pdf” received in the email, with your IEC (in 10 digits numerical) as password. The said .pdf file contains your “User ID” and “Password for e-voting”. Please note that the password is an initial password.

2. Launch internet browser by typing the URL https://www.evoting.nsdl.com/

3. Click on “Shareholder - Login”.

4. Put User ID and password as initial password noted in step (1) above and Click Login.

5. Password Change Menu appears. Change the password with new password of your choice with minimum 8 digits/characters or combination thereof. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

6. Home page of “e-voting” opens. Click on e-voting: Active Voting Cycles.

7. Select “EVEN” of “TEXPROCIL”. Members can cast their vote online from September 22, 2017 (9:00 am) and ends on September 25, 2017 (5:00 pm).

8. Note: The e-voting shall be disabled by NSDL for voting thereafter.

9. Now you are ready for “e-Voting” as “Cast Vote” page opens.

10. Cast your vote by selecting appropriate option and click on “Submit” and also “Confirm”, when prompted.

11. Upon confirmation, the message “Vote cast successfully” will be displayed.

12. If desired, you can also take print out of the vote cast.

13. Once you have voted on the resolution, you will not be allowed to modify your vote.

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14. If you forgot your password, you can reset your password by using “Forgot User Details/Password” option available on www.evoting.nsdl.com

15. The results declared along with the Report of the Scrutinizer shall also be placed on the website of the Council on www.texprocil.org and on the website of NSDL.

Please note the following:

A person, whose name is recorded in the register of members as on the cut-off date i.e.14.09.2017 only shall be entitled to avail the facility of e-voting.

Any person, who becomes member of the Council or any member renewing membership with the Council, after dispatch of the Notice, but on or before the cut-off date, may obtain the login ID and password by sending a request at [email protected]

The Scrutinizer shall first unblock the votes cast through e-voting and shall make a consolidated scrutinizer’s report of the total votes cast in favour of the candidates and submit the same to the Chairman who shall countersign the same and declare the result of the voting forthwith.

The result declared along with the report of the Scrutinizer shall also be placed on the website of TEXPROCIL www.texprocil.org and on the website of NSDL.

In case of any queries, you may refer to the Frequently Asked Questions (FAQs) for members and e-voting user manual for members available at the Downloads sections of https://www.evoting.nsdl.com or contact NSDL at the following toll free no.: 1800-222-990.

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Report ofThe Committee of Administration of The Council

for the Year 2016-2017TRENDS IN INTERNATIONAL ECONOMY

Global economic output is projected to grow by 3.5 percent in 2017 and 3.6 percent in 2018 as per the latest IMF Report (July 2017).Economic activity in both advanced economies and emerging and developing economies is forecast to accelerate in 2017, to 2 percent and 4.6 percent respectively, with global growth projected to be 3.5 percent. The growth forecast for 2018 is 1.9 percent for advanced economies, and 4.8 percent for emerging and developing economies.

The WTO's trade forecast (April 2017) estimates that world merchandise trade would grow by around 2.4%in 2017 up from 1.3% growth in 2016. In 2018, growth in world merchandise trade is expected to be between 2.1% and 4%. Attaining these rates of growth depends to a large degree on global GDP expansion in line with forecasts of 2.7% in 2017 and 2.8% in 2018, representing a significant improvement on the 2.3% GDP growth in 2016.

“Special Package” for the Made-ups sectorSmt Smriti Zubin Irani, Hon’ble Minister of Textiles, Government of India (Left) being

greeted by Shri Ujwal Lahoti, Chairman, TEXPROCIL (Right).

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Promotional Campaign for Textiles Industry Smt Smriti Zubin Irani, Hon’ble Minister of Textiles, Government of India (3rd from Left) launched the new TEXPROCIL Promotional Campaign at the Council’s Award Function held in Mumbai on 21st Oct., 2016. Also seen is Dr. Kavita Gupta, Textile

Commissioner (3rd from Right) along with the Council’s office bearers.

WORLD MERCHANDISE TRADE

In 2016, the weak trade growth in volume appears to reflect deeper structural changes in the relationship between trade and economic output, as the world merchandise trade in dollar value declined by (-) 3.23%, achieving a level of around US$16 trillion, as shown in Table I. Apart from this,cyclical factors also contributed to the slowing down of economic activity across the board.

In this scenario, the share of textile and clothing in overall merchandise trade in 2016 increased marginally to 4.55% from 4.51% in 2015.

Table I: WORLD MERCHANDISE TRADE AND TExTILES & CLOTHING ExPORTSValue in US $ Billion

Category 2014 2015 2016*World Merchandise Trade 19005 16489 15955

*World Textiles & Clothing Exports 799 745 726

% Share of Textiles & Clothing in World Merchandise Trade 4.20% 4.51% 4.55%

% Growth in Merchandise Trade 0.27% -13.23% -3.23%

% Growth in Textiles & Clothing Exports 4.44% -6.77% -2.47%Source: WTO & GTA *Estimates

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WORLD TRADE IN TExTILE AND CLOTHING

The world trade in textile and clothing grew at a CAGR of around 4.50% during the first decade of the free trade era (2005-2015) after the dismantling of quotas and is estimated to reach a level of USD 726 billion in the year 2016. In the coming years, as per World Bank Report (June 2017), a boost in manufacturing and trade, rising market confidence, and stabilizing commodity prices will allow growth to resume in commodity-exporting emerging markets and developing economies.

Considering these factors, the world trade in textile and clothing growth is expected to grow at a CAGR of 5.53% during the next five years reachinga level of around USD 900 billion in the year 2020 as shown in figure I.

Source: WTO/GTA

TExPROCIL - EY Study Report Seen in pic. (Left to Right) Shri Anurag Malik, Partner Ernst & Young, Shri Ujwal Lahoti,

Vice Chairman Texprocil, Shri R K Dalmia, Chairman, Texprocil, Smt Rashmi Verma, Secretary, MOT, Dr Kavita Gupta, Textile Commissioner, Shri Manikam Ramaswami, Immediate Past Chairman, Texprocil & Dr. Siddhartha Rajagopal, Executive Director, Texprocil at the release of Texprocil - EY Study Report on July 01, 2016 in Mumbai.

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DIRECTION OF REGIONAL TRADE

As pointed out, the decline in world textile trade in 2016 was the result of several risk factors converging over the course of the year. These weighed on regional flows in world textile trade of both developed and developing economies. The latter were more affected with theoverall demand recording a decline of (-) 2.85% in 2016 as China and other Asian economies recorded a slowdown.

Table II: Major Regional Flows in World Textile Trade

Value in US $ Billion

Region 2013 2014 2015 2016 (E) % Growth (Y-O-Y)Intra EU(28) 50.19 52.50 45.41 45.88 1.04%

Intra-Asia 86.59 89.19 88.03 82.73 -6.02%

Asia to Europe 28.43 30.22 27.29 27.92 2.31%

Asia to North America 25.37 26.16 26.76 25.75 -3.79%

Intra - North America 10.41 10.73 10.50 10.06 -4.21%

North America to LAC 4.00 4.00 4.00 3.67 -8.13%

Source: Upto 2015 WTO,2016 figures are estimated by ITC Geneva In keeping with the declining trend in global trade, regional flows in trade also recorded a negative growth during this period as shown in Table II. An analysis of regional trade flows shows that intra-trade amongst developing economies in 2016 lagged behind trade between the developed countries. Where as, Europe's trade grew faster than North America's, trade in the latter region has been mostly flat since the start of 2015.

Further in 2016, Intra-Asia trade declined by (-) 6.02% reaching USD 82.73 billion whereas Intra-EU (28) trade grew by 1.04% reaching USD 45.88 billion. Asia and Europe were the only regions making significant positive contributions in 2016, growing by 2.31%, with trade between them being valued at USD 27.92 billion.

Despite positive recovery in its volume of trade, North America was one of the biggest contributors to the weakness of regional trade flows in 2016 with a decline of (-) 4.21% from a level of USD 10.50 billion in 2015 to USD 10.06 billion in the year. During this period, Asian and North American trade also declined by (-) 3.79% reaching a level of USD 25.75 billion during 2016. Trade level between North America and Latin American Countries (LAC) has remained unchanged over the last four years with a reported decline of (-) 8.13% in 2016.

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INDIA'S POSITION IN GLOBAL TExTILE AND CLOTHING TRADEThe top ten suppliers of textile and clothing exported goods worth USD 508.17 billion to the world during the period January-December 2016 accounting for a share of 69.90% as shown in Table III.

Table III: MAJOR ExPORTERS OF TExTILES & CLOTHING

CountryBillion United States Dollars % Share % Change

2016/20152014 2015 2016 2016World 798.99 744.85 726.43 100.00 -2.47

China 287.67 273.58 257.32 35.42 -5.94

India 38.66 37.20 35.53 4.89 -4.48

Bangladesh 30.11 31.58 33.73 4.64 6.80

Italy 37.43 31.64 32.09 4.41 1.42

Germany 35.12 30.29 30.86 4.24 1.88

Vietnam 25.87 28.27 29.70 4.08 5.05

Turkey 29.35 26.32 26.19 3.60 -0.49

United States 26.19 24.92 23.53 3.23 -5.57

Hong Kong 29.21 26.54 22.80 3.13 -14.09

Spain 16.67 15.28 16.42 2.26 7.46

Source: GTA

OBSERVATIONS

In 2016, India achieved a level of USD 35.53 billion in exports of textiles and clothing, a decline of (-) 4.48% over the previous year. Its share in world trade in textile and clothing is estimated to be 4.89% in 2016.

India, with exports of USD 35.53 billion ranked 2nd and its exports are 1/7th of China’s level of exports.

China’s textile and clothing export amounted to USD 257.32 billion registering a decline of (-) 5.94%.

Exports from Bangladesh and Vietnam grew by 6.80% and 5.05% respectively.

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MAJOR ExPORTERS OF TExTILES

The top ten suppliers of textiles exported goods worth USD 218.61 billion globally during the period January-December 2016, accounting for a share of 70.46% as shown in Table IV.

Table IV: MAJOR ExPORTERS OF TExTILES


2016/20152014 2015 2016 2016World 346.69 319.39 310.26 100.00 -2.85China 114.21 111.23 107.89 34.77 -3.00United States 20.88 19.60 18.58 5.98 -5.20India 22.11 20.03 18.55 5.97 -7.38Germany 16.28 14.10 14.27 4.59 1.20Italy 14.46 12.20 12.13 3.90 -0.57Turkey 13.10 11.49 11.43 3.68 -0.52South Korea 13.63 12.10 11.39 3.67 -5.86Taiwan 10.83 10.11 9.33 3.00 -7.71Hong Kong 9.82 9.09 7.88 2.53 -13.31Japan 8.06 7.45 7.16 2.30 -3.89Source: GTA

OBSERVATIONS

World trade in textiles reported a decline of (-) 2.85% in 2016, declining from USD 319.39 billion during January-December 2015 to USD 310.26 billion during January-December 2016.

India being the 3rd largest exporter of textiles to the world after China and United States, exported textile goods worth USD 18.55 billion in January-December 2016 with a share of 5.97% in world trade in these items. However India’s textile exports in 2016 declined by(-) 7.38%.

China, the leading exporter of textiles to the world, reported a decline of (-) 3% with an export of USD 107.89 billion during January-December 2016.

United States being the second largest exporter, reported a decline of (-) 5.20%

Exports from Germany (ranked 4th) grew by 1.20% during January-December 2016 after suffering a decline of (-) 13.39% in 2015.

Italy (ranked 5th) reported a decline of (-) 0.57% followed by Turkey, South Korea, Taiwan, Hong Kong and Japan, all recording a declining trend.

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MAJOR IMPORTERS OF TExTILES

The top ten importing countries had a cumulative share of 51.40% in world textile imports during the period January-December 2016 as shown in Table V.

Table V: MAJOR IMPORTERS OF TExTILES


2016/20152014 2015 2016 2016World 289.40 267.55 261.19 100.00 -2.37

United States 27.80 29.00 28.14 10.77 -2.96

China 30.40 26.35 22.41 8.57 -14.95

Vietnam 18.16 19.15 19.14 7.32 -0.05

Germany 16.01 13.83 14.07 5.38 1.73

Italy 10.89 9.28 9.29 3.55 0.10

Bangladesh 8.48 8.94 9.14 3.49 2.23

Japan 9.30 8.52 8.46 3.23 -0.70

Turkey 10.07 8.56 8.44 3.23 -1.40

Indonesia 8.12 7.57 7.75 2.96 2.37

United Kingdom 8.87 8.28 7.59 2.90 -8.33

Source: GTA OBSERVATIONS

In 2016, world textile imports reported a decline of (-) 2.37% valued at USD 261.19 billion as shown in Table V.

USA was the largest importer of textiles in 2016, with imports reaching a level of USD 28.14 billion.

China being the 2nd leading importer of textiles in the world, reported a decline of (-) 14.95% with an import level of USD 22.41 billion during January-December 2016.

Vietnam imported textiles worth USD 19.14 billion, reporting a slight decline of (-) 0.05%.

Germany, Italy, Bangladesh and Indonesia reported positive growth of 1.73%, 0.10%, 2.23% and 2.37% respectively during this period.

Turkey and United Kingdom reported negative growth in import of textiles.

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GLOBAL TRADE IN COTTON TExTILE PRODUCTS

Table VI: Global Trade in Cotton Textiles Products

CategoryValue in Billion United States Dollar % Growth

2014 2015 2016 2015/2014 2016/2015Total Cotton Total Cotton Total Cotton Total Cotton Total Cotton

Yarn 46.95 15.61 41.86 14.11 39.79 12.76 -10.84 -9.60 -4.94 -9.56Fabrics 150.00 61.71 139.65 56.96 134.10 54.70 -6.90 -7.69 -3.97 -3.96Madeups 100.55 48.40 93.61 45.29 92.25 45.04 -6.90 -6.42 -1.45 -0.55TOTAL 297.50 125.72 275.12 116.36 266.14 112.50 -7.52 -7.44 -3.26 -3.31

Exports from IndiaYarn 6.23 4.13 5.60 3.79 5.00 3.22 -10.11 -8.23 -10.71 -15.03Fabrics 5.55 2.47 5.20 2.22 4.75 2.04 -6.30 -10.12 -8.65 -8.10Madeups 7.95 5.01 7.83 5.14 7.68 5.20 -1.50 2.59 -1.91 1.16TOTAL 19.73 11.61 18.63 11.15 17.43 10.46 -5.57 -3.96 -6.44 -6.18

India's Share in World ExportsYarn 13.26 26.45 13.37 26.86 12.56 25.23 - - - -Fabrics 3.70 4.00 3.72 3.89 3.54 3.72 - - - -Madeups 7.90 10.35 8.36 11.34 8.32 11.54 - - - -TOTAL 6.63 9.23 6.77 9.58 6.54 9.29 - - - -Source: GTA

OBSERVATIONS World textiles trade comprising Yarn, Fabrics and Made-up (all fibres) reported a decline of (-) 3.26%,

reaching a level of USD 266.14 billion during January-December 2016, with the trade in cotton textiles falling by (-) 3.31% and reaching a level of USD 112.50 billion.

Cotton made-ups (USD 45.04 billion) accounted for 48.82% share in world trade (all made-up USD 92.25 billion) while cotton fabrics (USD 54.70 billion) and cotton yarn (USD 12.76 billion) accounted for 40.79% and 32.06% of total world trade in these items, respectively.

During this period India exported textile products (all fibers) worth USD 17.43 billion and cotton textile products worth USD 10.46 billion. Exports of these items declined by (-) 6.44% and (-) 6.18% over the previous year respectively.

Global export of cotton yarn during January-December 2016 reached a level of USD 12.76 billion decreasing from USD 14.11 billion marking a drop of (-) 9.56%. Exports of all types of yarns from the World also declined by (-) 4.94% during 2016.

As the largest exporter, India’s exports of cotton yarn reached a level of USD 3.22 billion decreasing from USD 3.79 billion, falling by (-) 15.03 during January-December 2016. Exports of all types of yarns from India too declined by (-) 10.71% in 2016.

India’s exports of all fabrics declined by (-) 8.65% decreasing to USD 4.75 billion in January-December 2016 from USD 5.20 billion in January-December 2015. In case of cotton fabrics, India’s exports reported a decline of (-) 8.10% during 2016, whereas the global trade too showed a decline of (-) 3.96%.

India’s exports of made-ups (all fibres) has slightly declined by (-) 1.91% during the period January-December 2016. In the case of cotton made-ups, India grew by 1.16%, increasing from USD 5.14 billion in January-December 2015 to USD 5.20 billion in January-December 2016.

Cotton made-ups dominated the Indian cotton textile basket with a share of 49.71%, followed by cotton yarn (30.78%) and cotton fabrics (19.50%).

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TExTILE AND CLOTHING IMPORT TRENDS IN MAJOR MARKETS

TExTILE AND CLOTHING IMPORT TRENDS IN USA

Table VII: USA Imports of Textiles and ClothingDetails 2014 2015 2016 Jan/May 2016 Jan/May 2017

Textiles (Bn. USD) 27.80 29.00 28.14 11.47 11.77

% Growth 4.58% 4.31% -2.96% -3.28% 2.61%

Clothing (Bn. USD) 82.98 86.10 81.34 31.41 30.92

% Growth 2.48% 3.75% -5.52% -2.51% -1.56%

T & C (Bn. USD) 110.78 115.10 109.48 42.88 42.69

% Growth 3.00% 3.89% -4.88% -2.72% -0.44%

Source: GTA, U.S. Department of Commerce, Bureau of Census OBSERVATIONS

Overall, the Textile and Clothing import in USA reported a decline of (-) 4.88% during January-December 2016 valued at USD 109.48 billion as shown in Table VII.

While textiles reported a decline of (-) 2.96% in 2016, declining from USD 29 billion during January-December 2015 to USD 28.14 billion during January-December 2016, clothing imports have also declined by (-) 5.52% during the same period.

During January-May 2017, US imports of Textiles has grown by 2.61% as compared to January-May 2016.

Overall imports of Textile and Clothing in USA has declined slightly by (-) 0.44% during the period January-May 2017.

Exploring thepotential for yarns & fabrics in MyanmarSeen in pic. Shri Ujwal Lahoti, Vice Chairman, TEXPROCIL (2nd from Right) presenting Indian Home Textiles Catalogue to Shri Myint Soe, Chairman of the Myanmar Garments

Manufacturers Association (extreme Left) at the 5th Myanmar International Textile & Garment Industry Exhibition (MTG 2016), held from June 24-27, 2016.

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MAJOR ExPORTERS OF TExTILES & CLOTHING TO USA

TABLE VIII : Top 10 Exporters of Textiles and Clothing to USA

CountryValue in Billion USD % Growth % Share

2014 2015 2016 Jan/May 2016

Jan/May 2017

Jan/Dec 2016/2015

Jan/May 2017/2016 2015 2016

World 110.78 115.10 109.48 42.88 42.69 -4.88 -0.44 100.00 100.00China 41.19 42.59 39.48 14.12 13.98 -7.30 -0.99 37.00 36.06Vietnam 9.59 10.88 11.07 4.30 4.58 1.74 6.51 9.45 10.11India 7.06 7.60 7.58 3.35 3.46 -0.26 3.28 6.60 6.92Bangladesh 4.90 5.49 5.36 2.31 2.19 -2.36 -5.19 4.76 4.89Mexico 5.49 5.35 5.16 2.07 2.17 -3.55 4.83 4.64 4.71Indonesia 5.10 5.22 4.96 2.13 2.02 -4.98 -5.16 4.53 4.53Pakistan 3.05 3.03 2.74 1.11 1.13 -9.66 1.80 2.63 2.50Honduras 2.72 2.81 2.67 1.00 1.01 -4.98 1.00 2.44 2.43Cambodia 2.51 2.51 2.17 0.88 0.84 -13.54 -4.54 2.18 1.98Sri Lanka 1.83 2.10 2.02 0.88 0.83 -3.85 -5.68 1.82 1.84Source: GTA, U.S. Department of Commerce, Bureau of Census

OBSERVATIONS

Overall, the Textile and Clothing import in USA reported a decline of (-) 4.88% during January-December 2016 valued at USD 109.48 billion as shown in Table VIII.

The T&C market in USA has declined by (-) 0.44% in first five months of 2017, as shown in Table VIII.

India ranked as the 3rd largest supplier after China and Vietnam in the USA market exporting textile and clothing products worth USD 7.58 billion during 2016, reporting a slight decline of (-)0.26% over the previous year. Exports in the period January-May of 2017 grew by 3.28%.

China continued to dominate the US T&C market with a share of 36.06%.

Vietnam has been increasing its share in USA T&C with a growth rate of 1.74%. It exported T&C products worth USD 11.07 billion in 2016 and maintained its position as the second largest supplier after China. Exports in the period January-May of 2017 grew by 6.51%.

Exports from Bangladesh have declined by (-) 2.36% during January-December 2016. During first five months of 2017, Bangladesh exports declined by (-) 5.19%.

Sri Lanka reported a decline of (-) 3.85% during January-December 2016.

The top ten suppliers of textile and clothing to USA hold a collective share of 76% in textile and clothing imports.

15

MAJOR ExPORTERS OF TExTILES TO USA

TABLE Ix : Top 10 Exporters of Textiles to USA


2014 2015 2016 Jan/May 2016

Jan/May 2017

Jan/Dec 2016/15

Jan/May 2017/16 2015 2016

World 27.80 29.00 28.14 11.47 11.77 -2.96 2.61 100.00 100.00

China 10.70 11.55 11.23 4.37 4.55 -2.77 4.11 39.82 39.90

India 3.62 3.90 3.92 1.61 1.76 0.51 9.31 13.44 13.93

Mexico 1.63 1.67 1.65 0.67 0.73 -1.19 8.95 5.75 5.86

Pakistan 1.57 1.58 1.46 0.61 0.64 -7.59 4.91 5.44 5.18

Canada 1.39 1.35 1.33 0.57 0.53 -1.48 -7.01 4.65 4.72

South Korea

1.02 1.01 0.97 0.41 0.39 -3.96 -4.87 3.48 3.44

Turkey 0.85 0.90 0.95 0.38 0.41 5.55 7.89 3.10 3.37

Taiwan 0.68 0.70 0.64 0.25 0.24 -8.57 -4.00 2.41 2.27

Japan 0.63 0.65 0.61 0.25 0.25 -6.15 0.00 2.24 2.16

Germany 0.70 0.65 0.60 0.26 0.25 -7.69 -3.84 2.24 2.13

Source: GTA, U.S. Department of Commerce, Bureau of Census OBSERVATIONS

Textile imports into USA has declined by (-) 2.96% in 2016 & has grown by 2.61% in the first five months of 2017, amounting to USD 28.14 billion and USD 11.77 billion respectively, as shown in Table IX.

Imports of textiles from India to USA grew by 0.51% during 2016 and has rapidly increased by 9.31% in the period January-May 2017 amounting to USD 3.92 billion and 1.76 billion respectively. India’s share in the textile imports into USA grew to 13.93% in 2016 from 13.44% in 2015.

China had the largest share of 39.90% in textile imports in USA. Its exports has declined by (-) 2.77% accounting for USD 11.23 billion of the total imports of USD 28.14 billion in 2016. In the period January-May 2017, China reported a growth of 4.11% in its exports to USA.

Textile exports from Turkey grew by 5.55% during January-December 2016.

In the period January-May of 2017, exports from Canada, South Korea, Taiwan and Germany has declined.

The top ten suppliers of textiles have a collective share of 82.96% in the US textile imports.

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TExTILE AND CLOTHING IMPORT TRENDS IN EU (28)

Table x: EU (28) Imports of Textiles and ClothingDetails 2014 2015 2016 Jan/May 2016 Jan/May 2017

Textiles (Bn. USD) 35.13 31.83 32.18 14.04 14.10% Growth 7.89% -9.39% 1.09% 4.15% 0.42%Clothing (Bn. USD) 97.47 89.74 89.89 35.76 34.78% Growth 9.18% -7.93% 0.16% 2.34% -2.74%T & C (Bn. USD) 132.60 121.57 122.07 49.80 48.88% Growth 8.84% -8.31% 0.41% 2.85% -1.84%Source: GTA, Eurostat

OBSERVATIONS

EU (28) textile and clothing import have slightly increased by 0.41% during 2016 amounting to USD 122.07 billion as shown in Table X. Textile imports increased by 1.09% and clothing imports increased by 0.16% reaching USD 32.18 billion and USD 89.89 billion respectively.

In January-May 2017, imports of textile and clothing to EU (28) have declined by (-)1.84% in which textile imports grew by 0.42% and clothing imports declined by (-)2.74%.

TRADE & INVESTMENT OPPORTUNITIES IN VIETNAMSeen in pic. Head of Chancery, Consulate General of India in Ho Chi Minh City, Shri Jeevan Kandpal (2nd from left) along with Shri Ujwal R Lahoti, Chairman, TEXPROCIL (Centre), Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL

(2nd fromright), Shri Shailesh Martis, Joint Director, TEXPROCIL (extreme left) and Shri Nirmit Vaid, GM, EXIM Bank (extreme right) at the 16th Vietnam Intl.

Textile & Garment Exhibition (VTG) 2016.

17

MAJOR ExPORTERS OF TExTILES & CLOTHING TO EU (28)

TABLE xI : Top 10 Exporters of Textiles and Clothing to EU (28)


2014 2015 2016 Jan/May 2016

Jan/May 2017

Jan/Dec 2016/2015

Jan/May 2017/2016 2015 2016

World 132.60 121.57 122.07 49.80 48.88 0.41 -1.84 100.00 100.00

China 49.06 44.00 41.52 15.36 14.83 -5.63 -3.45 36.19 34.01

Bangladesh 15.24 15.64 16.99 7.22 7.24 8.63 0.27 12.86 13.91

Turkey 18.25 15.78 15.99 6.94 6.52 1.33 -6.05 12.98 13.09

India 9.50 8.58 8.63 4.03 3.92 0.58 -2.72 7.05 7.06

Pakistan 5.18 5.07 5.39 2.25 2.37 6.31 5.33 4.17 4.41

Cambodia 2.99 3.30 3.79 1.44 1.45 14.84 0.69 2.71 3.10

Vietnam 3.35 3.48 3.69 1.41 1.44 6.03 2.12 2.86 3.02

Morocco 3.33 2.81 3.08 1.38 1.37 9.60 -0.72 2.31 2.52

Tunisia 3.11 2.51 2.47 1.12 1.06 -1.59 -5.35 2.06 2.02

Indonesia 2.21 1.91 1.90 0.82 0.73 -0.52 -10.97 1.57 1.55

Source: GTA, Eurostat OBSERVATIONS

India ranked 4th after China, Bangladesh and Turkey, in the EU (28) textile and clothing market, exporting goods worth USD 8.63 billion during 2016 and registering a growth of 0.58%as shown in Table XI.

China continued to be the leading supplier of textiles & clothing into EU (28) with a share of 34.01%, followed by Bangladesh with 13.91%, Turkey with 13.09% and India with 7.06% in the year 2016.

Top ten exporters of textile and clothing had a collective share of 84.69% in EU (28) textile and clothing to be removed imports valued at USD 103.45 billion in 2016.

Textile exports from Pakistan grew by 6.31% followed by Cambodia with 14.84% during January- December 2016

In the period January-May 2017, Pakistan has recorded a decent growth of 5.33%.

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MAJOR ExPORTERS OF TExTILES TO EU (28)

TABLE XII : Top 10 Exporters of Textiles to EU (28)


2014 2015 2016 Jan/May 2016

Jan/May 2017

Jan/Dec 2016/2015

Jan/May 2017/2016 2015 2016

World 35.13 31.83 32.18 14.04 14.10 1.09 0.42 100.00 100.00

China 11.47 10.66 10.80 4.69 4.68 1.31 -0.21 33.49 33.56

Turkey 6.00 5.31 5.44 2.39 2.31 2.44 -3.34 16.68 16.90

India 3.29 2.89 2.94 1.26 1.31 1.73 3.96 9.07 9.13

Pakistan 2.75 2.54 2.66 1.13 1.16 4.72 2.65 7.97 8.26

United States 1.41 1.37 1.22 0.55 0.59 -10.94 7.27 4.30 3.79

Korea, South 1.40 1.26 1.22 0.53 0.53 -3.17 0.00 3.95 3.79

Switzerland 1.07 0.91 0.90 0.39 0.37 -1.09 -5.12 2.85 2.79

Japan 0.73 0.66 0.72 0.31 0.33 9.09 6.45 2.07 2.23

Egypt 0.65 0.53 0.49 0.23 0.21 -7.54 -8.69 1.66 1.52

Taiwan 0.59 0.52 0.49 0.21 0.21 -5.76 0.00 1.63 1.52

Source: GTA, Eurostat OBSERVATIONS

As shown in Table XII, EU (28) textile imports increased by 1.09% valued at USD 32.18 billion during 2016.

India the 3rd largest supplier to the EU (28) had a share of 9.13%, exporting textile goods worth USD 2.94 billion during 2016. India reported a growth of 1.73% in 2016 over previous year. Also, exports have shown an increase of 3.96% during January-May 2017.

Exports from Pakistan, the 4th largest supplier reported a growth of 4.72% during 2016 and continued to register a positive growth of 2.50% during January-May 2017.

As in the case of USA, China market had a leading share of 33.56% in EU (28) textile imports too, with an export level of USD 10.80 billion. China also reported positive growth of 1.31% in January-December 2016. However, exports have declined by (-) 0.21% during January-May 2017.

Apart from China, Turkey, India and Pakistan the other top 6 suppliers of textiles to EU (28) were USA, South Korea, Switzerland, Japan, Egypt and Taiwan.

Top ten exporters of textiles had a collective share of 83.49% in EU (28) textile imports valued at USD 26.88 billion in 2016.

In the period January-May 2017, excepting for China, Turkey, Switzerland and Egypt, all the other suppliers amongst the top ten registered a positive growth.

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ExPORT PERFORMANCE IN FISCAL YEAR 2016-17India’s status as one of the world’s largest producer of cotton has led the country to be a significant exporter of cotton and cotton textile products. Textiles industry in India has a share of 14% in industrial production, 4% in the country’s GDP and 13% in the export earnings. It employs over 51 million people directly and 68 million people indirectly. Indian textile products are exported to more than one hundred countries.

The fiscal year 2016-17 saw the industry reel under the pressure of a decline in demand arising out of attempts by major importing economies to protect their own industries by limiting imports, despite efforts taken in liberalising world trade. Asian neighbours including Bangladesh, Cambodia, Indonesia, Pakistan, Thailand, Sri Lanka & Vietnam continued to pose competitive challenges to India. While Pakistan and Bangladesh have been accorded zero-duty access by the EU and other developed economies, many of these Asian countries have succeeded in obtaining preferential access in some categories of trade with the major importing economies.

The period also saw India making encouraging progress in improving external ratings of its business environment (ease of doing business) and implementing the landmark legislation in indirect taxation viz. Goods & Service Tax (GST). However issues relating to high raw material and utility costs, high interest rates and transaction costs continue to be major challenges in achieving higher level of competitiveness and growth.

ExPORTS OF COTTON TExTILES

In 2016-17, exports of cotton textiles from India declined by 2.37% to a level of USD 10.70 billion from USD 10.96 billion in the previous year. Cotton yarns declined by (-) 7.20% in value terms during the period 2016-17. Cotton made-ups showed a positive growth of 1.92% in value terms while cotton fabrics declined by about (-) 4.65% during the fiscal year 2016-17 as shown in Figure II.

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The share of cotton yarns in India’s cotton textile export basket declined by 2% and cotton fabrics by 1% in 2016-17. Correspondingly, the share of cotton made-ups increased by 3%.

In FY 2016-17, share of cotton made-ups was 50%, cotton fabrics was 19% and cotton yarn was 31% in the total export of cotton textiles from India as shown in Figure III.

Table xIII: Exports of Cotton Textiles

YearYarns Fabrics Madeups Total

Bn. % Bn. % Bn. % Bn. %USD Growth Share USD Growth Share USD Growth Share USD Growth Share

2016-17 3.35 -7 31 2.05 -5 19 5.30 2 50 10.70 -2 1002015-16 3.61 -8 33 2.15 -12 20 5.20 3 47 10.96 -4 1002014-15 3.94 -14 34 2.44 11 22 5.05 5 44 11.43 -1 1002013-14 4.56 -- 39 2.20 -- 19 4.80 -- 42 11.56 -- 100Source: GTIS /MOC

As regards, export of cotton fibre, from India they have declined by (-) 15.97% during the fiscal year 2016-17 in dollar terms as well as in quantity terms by (-) 25.50%. However, export of cotton textiles (including Cotton) showed a lower rate of decline of (-) 4.41% during the last fiscal year reaching a level of US$ 12.33 billion.

Table xIV: Exports of Cotton Textiles (Inclusive of Cotton Fibre)

YearCotton Fibre Total Cotton Textiles

Total Cotton Textiles(Incl. Raw Cotton)

Billion % Billion % Billion %INR USD Growth INR USD Growth INR USD Growth

2016-17 109.82 1.63 -15.97 717.04 10.70 -2.37 826.86 12.33 -4.412015-16 128.21 1.94 2.10 716.78 10.96 -4.11 844.99 12.90 -3.222014-15 116.43 1.90 -47.80 699.15 11.43 -1.12 815.58 13.33 -12.302013-14 223.41 3.64 -- 699.75 11.56 -- 923.16 15.20 --Source: GTIS / MOC

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MAJOR DESTINATION FOR ExPORTS OF COTTON TExTILES FROM INDIA

Table xV: Top 15 Destination for export of Cotton Textiles from India

RankCountry

Million United States Dollars % Share % Change2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2017/2016

World 11432.84 10958.24 10696.09 100.00 100.00 100.00 -2.391 United States 2388.99 2482.72 2627.22 20.89 22.65 24.56 5.82

2 China 1568.39 1525.13 1097.79 13.71 13.91 10.26 -28.01

3 Bangladesh 1008.45 990.24 995.88 8.82 9.03 9.31 0.56

4 UAE 627.64 626.57 524.29 5.48 5.71 4.90 -16.32

5 Germany 371.39 339.22 371.91 3.24 3.09 3.47 9.63

6 Sri Lanka 334.67 327.07 343.04 2.92 2.98 3.20 4.88

7 UK 339.50 318.76 308.59 2.96 2.90 2.88 -3.19

8 Pakistan 100.13 142.38 233.52 0.87 1.29 2.18 64.01

9 Italy 217.08 205.20 219.34 1.89 1.87 2.05 6.89

10 South Korea 225.27 202.33 203.62 1.97 1.84 1.90 0.63

11 Egypt 227.81 199.08 157.88 1.99 1.81 1.47 -20.69

12 Portugal 137.71 131.27 150.73 1.20 1.19 1.40 14.82

13 Australia 129.26 128.20 139.44 1.13 1.16 1.30 8.76

14 France 131.40 123.21 130.78 1.14 1.12 1.22 6.14

15 Saudi Arabia 104.00 86.10 129.00 0.90 0.78 1.20 49.82

Source: GTIS / MOC

OBSERVATIONS

As can be seen in Table XV, USA continued to be the major export destination in 2016-17 for exports of cotton textiles from India with a share of 24.56% followed by China and Bangladesh with shares of 10.26% and 9.31% respectively.

71.36% of the total cotton textile exports accounting for USD 7.63 billion was exported to the top 15 listed countries.

Exports to Pakistan ranked as 8th during fiscal year 2016-17 increased by 64.01%.

Exports to China declined by (-) 28.01% during this period.

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DIRECTION OF TRADE

Table xVI: Regions Importing Cotton Textiles from India

RegionBillions United States Dollars % Share % Growth % Growth2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2015-16 2016-17

World 11.43 10.96 10.70 100.00 100.00 100.00 -4.11 -2.37

North America (USA/Canada) 2.51 2.59 2.75 21.95 23.63 25.70 3.18 6.17

EU(28) 1.84 1.68 1.81 16.09 15.32 16.91 -8.69 7.73

Hong Kong/ China 1.67 1.59 1.19 14.61 14.50 11.12 -4.79 -25.15

SAARC 1.49 1.52 1.63 13.03 13.86 15.23 2.01 7.23

African Zone 1.15 1.06 0.95 10.06 9.67 8.87 -7.82 -10.37

Middle East 0.87 0.99 0.81 7.61 9.03 7.57 13.79 -18.18

Asean 0.55 0.42 0.41 4.81 3.83 3.83 -23.63 -2.38

South America/ Mexico 0.46 0.35 0.37 4.02 3.19 3.45 -23.91 5.71

CIS 0.05 0.03 0.03 0.43 0.27 0.28 -40.00 0.00

Source: GTA/MOC

OBSERVATIONS

India’s export of cotton textiles to the world declined by (-) 2.37% in the fiscal year 2016-17 from USD 10.96 billion during 2015-16 to USD 10.70 billion.

A Region-wise analysis (Table XVI) shows that North American region (USA/Canada) recorded the highest level of import of cotton textiles from India increasing its share to 25.70% in 2016-17 from 23.63% in 2015-16. The region imported cotton textiles amounting to USD 2.75 billion.

EU (28) ranked second amongst the regions with imports amounting to USD 1.81 billion commanding a share of 16.91%. Also, export to the region has increased by 7.73% in the fiscal year 2016-17.

Hong Kong / China imports declined by (-) 4.79% amounting to USD 1.59 billion with a share of 14.51% during fiscal 2016-17.

Imports to the SAARC region are growing in value terms since the last three fiscal years.

India’s export of cotton textiles to Middle East declined by (-) 18.18% in the fiscal year 2016-17 from USD 0.99 billion during 2015-16 to USD 0.81 billion.

CIS Region had the lowest level of imports from India with a share of less than (-) 1%.

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LEADING MARKETS FOR COTTON TExTILE PRODUCTS

COTTON YARN - (Value)

Table xVII: Top 10 Destination for export of Cotton Yarn from India - (Value)

Rank CountryMillion United States Dollars % Share % Change

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2017/16 World 3938.19 3610.56 3352.25 100.00 100.00 100.00 -7.15

1 China 1516.99 1475.49 1050.88 38.51 40.86 31.34 -28.77

2 Bangladesh 554.43 572.09 594.69 14.07 15.84 17.74 3.95

3 Pakistan 90.37 131.79 215.10 2.29 3.65 6.41 63.21

4 Egypt 186.59 164.42 133.20 4.73 4.55 3.97 -18.98

5 Portugal 112.53 110.10 126.92 2.85 3.04 3.78 15.27

6 Korea South 142.03 107.81 109.69 3.60 2.98 3.27 1.74

7 Peru 119.77 86.65 100.22 3.04 2.39 2.98 15.66

8 Vietnam 177.37 70.26 76.77 4.50 1.94 2.29 9.26

9 Sri Lanka 73.41 73.61 70.89 1.86 2.03 2.11 -3.69

10 Hong Kong 75.78 49.11 68.83 1.92 1.36 2.05 40.15

Source: GTIS / MOC

COTTON YARN - (Quantity)

Table xVIII: Top 10 Destination for export of Cotton Yarn from India - (Quantity)

RankCountry


World 1253.33 1307.11 1203.25 100.00 100.00 100.00 -7.94

1 China 545.72 588.58 455.03 43.54 45.02 37.81 -22.69

2 Bangladesh 163.43 194.34 192.66 13.03 14.86 16.01 -0.86

3 Pakistan 22.82 40.77 66.15 1.82 3.11 5.49 62.25

4 Egypt 59.51 60.35 45.87 4.74 4.61 3.81 -23.99

5 Portugal 34.48 40.54 45.32 2.75 3.10 3.76 11.79

6 Peru 37.57 32.22 36.12 2.99 2.46 3.00 12.10

7 South Korea 41.96 35.00 34.99 3.34 2.67 2.90 -0.02

8 Vietnam 53.93 24.01 25.34 4.30 1.83 2.10 5.53

9 Hong Kong 24.39 17.83 23.78 1.94 1.36 1.97 33.37

10 Colombia 26.41 26.83 23.61 2.10 2.05 1.96 -12.00

Source: GTIS / MOC

OBSERVATIONS China continued to be the major market for Cotton Yarn in 2016-17 with a share of 31.34%. However

exports of cotton yarn to China declined by (-) 28.77% in value over 2015-16. Bangladesh was another important market for cotton yarn with a share of 17.74%. Pakistan, Egypt, Portugal, South Korea, Peru, Vietnam, Sri Lanka and Hong Kong were the other leading markets.

Export of cotton yarn from India to the world decline by (-) 7.15% in value terms reaching a level of USD 3.35 billion in FY 2016-17. Exports to the top 10 countries amounted to USD 2.54 billion contributing a collective share of 75.94% as shown in Table XVII.

24

Export to Pakistan recorded the highest growth rate of 63.21% in the fiscal year 2016-17 followed by Bangladesh with growth rate of 3.95%.

The world imported 1,203.25 million kilograms of cotton yarns from India during fiscal year 2016-17 as shown in Table XVIII. Exports decreased by (-) 7.94% over the previous fiscal year. Demand from Pakistan, Portugal, Peru, Vietnam and Hong Kong grew by 62.25%, 11.79%, 1.41%, 12.10%, 5.53% and 33.57% respectively.

China continued to be the leading importer with an import level of 455.03 million kilograms. However, exports to China decreased by (-) 22.69% in volume terms. Exports to countries like Bangladesh, Egypt, South Korea and Colombia declined in quantity terms by (-) 0.86%, (-) 23.99%, (-) 0.02 and (-) 12% respectively. Collectively, the top ten importing countries imported cotton yarns upto a level of 948.87 million kilograms in 2016-17 accounting for 78.81% of India’s cotton yarn exports to the world.

COTTON FABRICS

Table xIx: Top 10 Destination for export of Cotton Fabrics from India

Rank CountryMillion United States Dollars % Share % Change

2014-15 2015-16 2016-17 2014-15 2015-16 2016-17 2017/16 World 2443.32 2151.41 2047.91 100.00 100.00 100.00 -4.81

1 Bangladesh 445.05 408.04 392.09 18.21 18.96 19.14 -3.90

2 Sri Lanka 242.06 236.21 248.62 9.90 10.97 12.14 5.25

3 USA 119.16 115.18 128.45 4.87 5.35 6.27 11.52

4 UAE 172.18 133.29 112.88 7.04 6.19 5.51 -15.31

5 Senegal 65.53 70.61 88.55 2.68 3.28 4.32 25.40

6 South Korea 70.46 81.42 82.00 2.88 3.78 4.00 0.71

7 Sudan 51.85 54.37 58.99 2.12 2.52 2.88 8.49

8 Nepal 29.03 43.05 45.08 1.19 2.00 2.20 4.71

9 Togo 108.44 79.99 42.85 4.43 3.71 2.09 -46.43

10 Italy 52.08 45.66 40.99 2.13 2.12 2.00 -10.22

Source: GTIS / MOC

OBSERVATIONS

Bangladesh was the leading market for cotton fabrics during 2016-17 with a share of 19.14%, followed by Sri Lanka and USA with shares of 12.14% and 6.27% respectively. However in the same period the demand for Indian cotton fabric has increased in Sri Lanka and USA with exports growing by 5.25% and 11.52 respectively.

Countries like Senegal, South Korea, Sudan and Nepal led to an increase in exports. These countries grew by 25.40%, 0.71%, 8.49% and 4.71% respectively. Export to the top ten importing countries was USD 1.24 billion in 2016-17 accounting for a collective share of 60.55% as shown in Table XIX.

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COTTON MADE-UPS

Table xx: Top 10 Destination for export of Cotton Made-ups from India

RankCountry


World 5051.33 5196.26 5295.92 100.00 100.00 100.00 1.91

1 USA 2245.83 2352.81 2481.35 44.46 45.27 46.85 5.46

2 UAE 442.85 483.92 405.58 8.76 9.31 7.65 -16.18

3 Germany 285.32 263.34 284.69 5.64 5.06 5.37 8.10

4 UK 301.83 285.50 277.27 5.97 5.49 5.23 -2.88

5 Australia 119.71 120.90 131.47 2.36 2.32 2.48 8.74

6 Italy 108.80 108.23 124.17 2.15 2.08 2.34 14.72

7 France 117.14 111.31 120.39 2.31 2.14 2.27 8.15

8 Canada 107.18 102.80 115.52 2.12 1.97 2.18 12.37

9 Netherlands 83.71 75.63 112.90 1.65 1.45 2.13 49.27

10 Saudi Arabia 64.61 55.21 98.83 1.27 1.06 1.86 79.00

Source: GTIS / MOC

OBSERVATIONS

USA continued to be the leading market for Cotton Made-ups in 2016-17 with a share of 46.85%. UAE, Germany, U.K, Australia, Italy, France, Canada and Netherlands were other leading markets.

Export of Indian cotton made-ups to UAE has declined by (-) 16.18% from USD 483.90 million in the year 2015-16 to USD 405.58 million in the year 2016-17.

Exports to USA, Germany, Australia, Italy, France, Canada, Netherland sand Saudi Arabia grew by 5.46%, 8.10%, 8.74%, 14.72%, 8.15%, 12.37%, 49.27% and 79% respectively. However, export to UK declined by (-) 2.88% as shown in Table XX.

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ACTIVITIES UNDERTAKEN BY THE COUNCILfor the Year 2016 – 2017

The Council participated in the following international trade fairs and exhibition in the fiscal year 2016-17

TRADE FAIRS / ExHIBITIONS

Texprocil sponsored Fashion Show organised by Consulate General of India, Ho Chi Minh City, Vietnam (1st April, 2016)

EVTEKS - 22nd Istanbul International Home Textile Exhibition, Turkey (17-21 May, 2016)

5th Myanmar International Textile and Garment Industry Exhibition, Yangon, Myanmar (24-27 June, 2016)

10th Dhaka International Yarn and Fabric Show 2016 (10th DIFS 2016), Dhaka, Bangladesh (31 August to 3 September, 2016)

IRANTEX 2016, Tehran, Iran (3-6 September, 2016)

Texworld and Apparel Sourcing Show, Paris, France (12-15 September, 2016)

Yarn Expo & Intertextile Shanghai Apparel Fabrics, Shanghai, China (11-13 October, 2016)

16th Vietnam International Textile & Garment Industry (VTG) Exhibition, Ho Chi Minh City, Vietnam (23-26 November, 2016)

Heimtextil 2017 Fair, Frankfurt, Germany (10-13 January, 2017)

Colombiatex, Medellin City, Colombia (24-26 January, 2017)

14th International Istanbul Yarn Fair, Istanbul, Turkey (2-5 February, 2017)

Texworld and Apparel Sourcing Show, Paris, France (6-9 February, 2017)

60th Cairo Fashion & Tex Fair, Cairo, Egypt (2-5 March, 2017)

Preview in Daegu 2017, Daegu, South Korea (8-10 March, 2017)

Yarn Expo & Intertextile Shanghai Apparel Fabrics, Shanghai, China (15-17 March, 2017)

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TRADE DELEGATIONS / CONFERENCES / MEETINGS / PRESENTATIONS

9th Meeting of the India-EU Joint Working Group (JWG) on Textiles and Clothing, Brussels, Belgium (13-14 April, 2016)

2016 Imported Yarn Forum Hangzhou City, China (16-17 June, 2016)

Road Shows in China - to promote “Textiles India 2017” (27 March, 2017)

VISIT OF OVERSEAS DELEGATION TO INDIA

Visit of China Home Textile Association (CHTA) Delegation (12-18 November, 2016)

Visit of China Textile Information Network (CTIN) Delegation (16-20 November, 2016)

SEMINARS AND WORKSHOPS

Seminar on ECGC Policies & Forex Management (4 August, 2016)

Seminar on implications of GST on Textile sector, Mumbai (14 September, 2016)

TExPROCIL Export Awards 2015-2016Smt. Smriti Zubin Irani, Hon’ble Minister of Textiles, Govt. of India presenting the award for Highest Global Exports to the representatives of M/s. Welspun Global

Brands Limited at a grand function held in Mumbai on October 20, 2016. The Council awarded over 72 Trophies and Plaques to winners

in various categories of export.

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TRADE FAIRS / ExHIBITIONSTExPROCIL SPONSORED FASHION SHOW ORGANISED BY CONSULATE GENERAL OF INDIA,HO CHI MINH CITY (1ST APRIL, 2016)

With a view tostrengthening the cordial relations between India and Vietnam and considering the trade potential in yarns and fabrics, the Council sponsored a Fashion Show showcasing“ Ao Dai and Sarees” organised by the Consulate General of India in Ho Chi Minh City (HCMC) on 1st April 2016. The event was held in the Ao Dai museum, which is a heritage museum that displays the journey of the “Ao Dai”, the traditional Vietnamese dress through the years.

The fashion show celebrated the works of Vietnam’s well-known fashion designer Mr. Le Si Hoang.

The fashion show provided a platform to create traditional Vietnamese ladies wear called “Ao Dai” (similar to the Indian salwar kurta) from base Indian fabrics. Mr Le Si Hoang displayed his collections using synthetic fabrics for the ladies outfit and cotton fabrics for the men’s outfit during the Fashion Show. The event also included display of Indian fabric samples and catalogues in a separate exhibition hall within the premises of the Ao Dai Museum and the event received significant media attention.

EVTEKS - 22ND ISTANBUL INTERNATIONAL HOME TExTILE ExHIBITION, TURKEY (17-21 MAY, 2016)The Council participated in the 22nd edition of EVTEKS held at Istanbul, Turkey during May 2016. EVTEKS is a reputed International Home Textile Exhibition where premium range of products in Home textiles, Accessories and Raw materials of Textileare exhibited. Indian companies participating in this exhibition through the Council benefitted from the trade enquiries they received from the international buyers visiting the exhibition. The Council participated in this exhibition to explore the huge opportunities that are available for the Indian Made ups sector for export to Turkey.

Promotion of Indian Fabrics in VietnamDr. Siddhartha Rajagopal, Executive Director, TEXPROCIL (extreme Right) felicitating Mr. Le Si Hoang, the Vietnamese Fashion Designer (centre) during a fashion show

organised by Consulate General of India, Ho Chi Minh City, Vietnam to promote Indian fabrics on April 01, 2016. Also seen in pic Ms. Vietnam (extreme Left) in Ao-Dai outfit

designed / tailored from Indian fabrics.

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5TH MYANMAR INTERNATIONAL TExTILE AND GARMENT INDUSTRY ExHIBITION, YANGON, MYANMAR (24-27 JUNE, 2016)

Further to the BSM organised by the Council in Mandalay, Amarapura, Wundwin and Yangon in December 2014 and with the aim of exploring potential in the yarns and fabrics segment of the textile industry in Myanmar, the Council participated with a group of 12 companies in the 5th Myanmar International Textile & Garment Industry Exhibition (MTG 2016), from 24-27 June 2016. A total of 128 exhibitors from 16 countries displayed a broad range of their latest products and technologies in textiles and textile machinery at the Myanmar Event Park (MEP), once again serving as an important trading platform for textile companies from around the region.

Along with 12 member participants, the Council also setup an information booth measuring 9 sq.mtrs. showcasing the strengths of the Indian textile industry including various types of yarns and fabrics manufactured in India.

10TH DHAKA INTERNATIONAL YARN AND FABRIC SHOW 2016 (10TH DIFS 2016), DHAKA, BANGLADESH (31 AUGUST TO 3 SEPTEMBER, 2016)

In view of the large demand for cotton, yarn and fabrics in Bangladesh, the Council organised group participation at the 11th Dhaka International Yarn and Fabric Fair held at Dhaka from 31st August to 3rd September 2016, with 16 exhibitors of yarn and fabrics.This Fair was co-located with Textech Fair (textile machinery) and Dyechem Fair (textile chemicals) in the same venue. Around 1050 exhibitors from China, India, Singapore, Bangladesh Taiwan etc. participated at this Fair. Almost 80 % of the exhibitors were Chinese companies, showcasing all types of Fabrics as well as textile machinery and accessories.

Bangladeshi importers of Yarn were looking for high quality yarn at a very competitive price level. Visitors also showed keen interest in denim fabrics, grey fabrics and woven shirting fabrics. The Council had an information booth providing information on strengths of Indian manufacturers and exporters of Textiles. During the interaction with visitors at the Council’s information booth, it was noted that the Bangladeshi manufacturers are facing increasing pressure to adhere to various compliances, as stipulated by the importers in EU and USA. Most of the garment exporters in Bangladesh are upgrading their manufacturing facilities to comply with the stringent standards stipulated by buying houses.

IRANTEx 2016, TEHRAN, IRAN (3-6 SEPTEMBER, 2016)

The Council organized participation of its members at IRANTEX 2016 held in Tehran, Iran from 3-6 September 2016. The exhibition was held at Tehran International Permanent Fair Ground. 11 companies participated in the fair through the Council.

The lifting of international trade sanctions on Iran has opened up vast opportunities for exports of Indian textiles products to Iran including yarns, fabrics, home textiles, garments, etc. A large number of visitors both from Iran and other countries visited the fair. The participating companies expressed overall satisfaction with the exhibition. Many of them are reported to have established good contacts with potential buyers.

Iran is a good market for Indian cotton textiles products. Exports to this Country can be increased if the products are of high quality and priced competitively. In the likely event of a reduction in duties by Iran on Indian textiles, Iran promises to be an attractive market of for Indian Cotton textiles.

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TExWORLD AND APPAREL SOURCING SHOW, PARIS, FRANCE (12-15 SEPTEMBER, 2016)

With a view to showcase presence of India in the European market, the Council participated with a 12 sq mt booth at the TEXWORLD Fair, held at Paris from 12 to 15 September 2016. The Fair is a combined event comprising TEXWORLD & Apparel Sourcing Fairs, spread over 2 Halls. There were 97 exhibitors from India of which 67 were in Texworld and 30 in Apparel Sourcing.

The Council had an information booth at the Fair providing information about the advantages of sourcing fabrics and other textiles from India. Over 12,000 visitors from over 80 countries visited the show. Trade enquiries were received from importers of fabrics in Mauritius, South Africa, France among others. Of the total trade enquiries received at the stall, 60% of the visitors required fabrics while 30% needed yarns.

YARN ExPO & INTERTExTILE SHANGHAI APPAREL FABRICS, SHANGHAI, CHINA (11-13 OCTOBER, 2016)

The Council organized a group participation of Members at Intertextile Shanghai Apparel Fabrics & Yarn Expo Fair, Shanghai, China from 11 to 13 October 2016. 43 companies exhibited at the India Pavilion at ‘Yarn Expo’ and 15 exhibitors at India Pavilion in ‘Intertextile Apparel Fabrics fair’, held concurrently in different Halls in the National Exhibition and Convention Center (Shanghai), China.

This year’s fringe programme featured 28 seminars, six panel discussions and international and domestic Trend Forums, all of which offered the industry information and inspiration with both international and domestic focus.

Dr. Siddhartha Rajagopal, Executive Director, Texprocil also made a presentation at a seminar on ‘Shifting Production Centres and Opportunity to Invest in Indian Textile Industry’.

Trade Promotion in China: Balancing Textile TradeA glimpse of Indian Pavilionorganized by the Council of Member Companies at Intertextile Shanghai Apparel Fabrics & Yarn Expo Fair, Shanghai, China from

11 to 13 October 2016.

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16TH VIETNAM INT’L TExTILE & GARMENT INDUSTRY (VTG) ExHIBITION, HO CHI MINH CITY, VIETNAM (23-26 NOVEMBER, 2016)

Vietnam has established itself as one of the important garment making nations in the world. The Council has been organising BSMs annually in Vietnam since 2009 including the visit of high level delegation to the Country in August 2014 where the delegates met 15 top garment companies in Ho Chi Minh City. In view of the emerging opportunities for yarns and fabrics in Vietnam the Council participated with 15 member companies in the Vietnam International Textiles & Garment (VTG) Industry exhibition held in Ho Chi Minh City, Vietnam from 23rd to 26th November, 2016.

The total no. of visitors to the Show were about 10,500 of which about 60% were purely for trade purposes. The visitors were from Vietnam, Korea, Japan and Thailand among others.

HEIMTExTIL 2017 FAIR, FRANKFURT, GERMANY, (10-13 JANUARY, 2017)

Heimtextil is the biggest and most important international trade fair for home and contract textiles. Trade visitors from all continents attend Heimtextil to experience the pioneering innovations and the latest trends.

A high level delegation under the leadership of Shri Puneet Aggarwal, Joint Secretary, Ministry of Textiles, Govt. of India visited the fair, to gain a first-hand experience of the international event and led focussed promotions of ‘Incredible Textiles of India’ at the fair.A networking meet on ‘Incredible Textiles of India’ was organised by the participating textile Councils on 11 Jan, 2017 during 5-7pm at Conference Room ‘Reflexian-2’ at Hall 10.3, in Messe Frankfurt fair premises.

Heimtextil 2017 – value addition in textilesA glimpse of the Council organized Indian Pavilion at Heimtextil 2017 Fair, held in

Frankfurt, Germany, from 10-13 January, 2017. Seen in pic. Shri Puneet Aggarwal, Joint Secretary, Ministry of Textiles, Govt. of India (6th from Left) and Mr. Raveesh Kumar, Consul General of India in Frankfurt, Germany (6th from Right) along with the office

bearers of TEXPROCIL and representatives of other Apex Textile Councils.

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As a part of the Roadshow, the Council organized a presentation showcasing the advantages of sourcing textiles from India amongst the leading importers/buyers visiting the fair. The meeting saw participation of around 60 attendees that included an encouraging representation of foreign buyers, leaders of international textile associations, media representatives and some of the leading Indian companies who actively participated in the Q&A session that followed. Some of the participants even thanked the organising Councils for providing a platform for networking which in near future should lead to fruitful business opportunities.

The Council’s booth ad measuring 48 SQM was strategically located at the entrance of Hall 10.2, exclusively meant for the Asian participants.The information booth set-up by the Council also showcased an impressive presentation of “Made-in-India” products sourced from the members based on the theme ‘Inspiring Luxury’, a campaign promoting cotton textiles from India. The fair saw 340 Indian participants both through Messe Frankfurt India and directly through Messe Frankfurt Germany. These included more than over 122 TEXPROCIL member participants.

COLOMBIATEx, MEDELLIN CITY, COLOMBIA (24-26 JANUARY, 2017)

The Council organized group participation of 39 Indian Companies at Colombiatex. Colombiatex is a B2B event for textile producers and distributors for textile, clothing, textile machinery, equipment and textile designs. This is the largest Textile Fair in the entire Latin American Region, mainly for promoting textile products from the Central and South American countries. India is the only Asian country allowed to participate with sizeable number of exhibitors. Importers of Textiles from all over the American continent visit this Fair to source their requirement.

Colombiatex 2017 – Promoting Indian textiles in Central & South AmericaThe Council organized group participation of its members at Colombiatex 2017 Fair,

held in Medellin City, Colombia, from 24-26 January, 2017. The Council setup an information corner and India Pavilion as part of the

promotional campaign titled ‘Incredible Textiles of India’.

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Visitors to the India pavilion included direct importers of textiles, agents representing sourcing requirement of weaving, knitting and garmenting companies. Apart from Colombian companies, a large number of visitors from Guatemala, Ecuador, Venezuela, Brazil, Portugal, Spain, USA, Canada and Peru also met the Indian exhibitors.

Focused and targeted branding efforts were undertaken with the theme “Incredible Textiles of India” at each of the stands of Indian exhibitors and banners displayed at strategic points at the Venue. Ms Babni Lal, Economic Advisor to Ministry of Textiles attended the fair on behalf of the Ministry of Textiles. She along with Shri. Prabath Kumar, Ambassador of India to Colombia, Shri. Ujwal Lahoti, Chairman, Texprocil addressed a seminar on ‘Advantages of Sourcing Indian Textile and Investment Opportunity’.

The Indian delegation also addressed a large number of Colombian Press/Media personnel and explained to them about the strengths of Indian Textile sector, importance of LAC market and in particular Colombian market for Indian textile suppliers, opportunities for mutual business prospect etc.

14TH INTERNATIONAL ISTANBUL YARN FAIR, ISTANBUL, TURKEY (2-5 FEBRUARY, 2017)

The Council participated in the 14th International Istanbul Yarn Fair which was held at the Tuyap Fair Convention & Congress Center Istanbul, Turkey from February 2 to 5, 2017. 19 Indian companies had participated in the fair through TEXPROCIL occupying an area of 171 sq. mtrs. Dr. Subrata Gupta, Joint Secretary, Ministry of Textiles, Government of India inaugurated the Indian Pavilion at the fair. A good number of visitors attended the fair. Many buyers from Countries like Iran, Egypt, China, Portugal, Spain and Poland besides Turkey visited the fair.

Trade Promotion TURKEY – Lucrative market for Indian TextilesDr. Subrata Gupta, Joint Secretary, Ministry of Textiles (5th from Left), Dr. Siddhartha Rajagopal, Executive Director (4th from Left), and Shri A. Ravi Kumar, Joint Director

(2nd from Right), in a meeting with Mr. Firkri Kurt, President, Association of Knitted & Woven Garments (ORSAD), Turkey (3rd from Right) on 3rd February 2016.

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On the sidelines of the Exhibition, the Council organized a Road show and B2B meetings. The Road show was well attended by the buyers and representatives from various textile associations in Turkey besides all the participating companies. Dr. Subrata Gupta, Joint Secretary, Ministry of Textiles made a presentation on the “Textiles India 2017 “ a mega show scheduled to be held from June 30 to July 2, 2017 at Gandhinagar, Gujarat. Further, Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL made a presentation on “Textiles in India - Emerging Opportunities for Trade and Investment”. Shri Azhar A. H. Khan, the Consul General, highlighted the potential for higher trade relation between the two countries. The Roadshow was followed by B2B meetings between the Indian Companies and the buyers / agents.

All the Indian companies benefited by participating in the fair. Many of them have got orders and have also established contacts with potential buyers. Turkey continues to be a lucrative market for Indian Cotton textiles products. In the likely event of a reduction in duties on Indian textiles especially fabrics by Turkey, the country promises to be an attractive market of for Indian Cotton Textiles.

TExWORLD AND APPAREL SOURCING FAIRS, PARIS, FRANCE (6-9 FEBRUARY, 2017)

Texworld Paris Fair, an event meant exclusively for professionals from the fashion industry and organised by Messe Frankfurt France, took place at Paris Le Bourget from 6-9 February 2017. With a view to showcase presence of India in the European market and benefit the exporters with the range of opportunities presented by the France market, TEXPROCIL organized a group participation of Indian exporters of Fabrics and Accessories at the February edition of Texworld Paris. This initiative was supported by the Embassy of India

Texworld and Apparel Sourcing Fair 2017Seen in pic. Shri Madhukumar Reddy, Joint Secretary, Ministry of Textiles, addressing

a press conference highlighting the capacities and capabilities of the Indian textile industry at the Feb 2017 edition of Texworld and Apparel Sourcing Fair in Paris,

France. Also seated on the dais are Shri Manish Prabhat, Chef de Mission, Embassy of India, Paris (extreme left) and Dr. Siddhartha Rajagopal,

Executive Director, TEXPROCIL (2nd from left).

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in France, Ministry of Textiles and Ministry of Commerce by granting MAI funds. The fair enabled the Indian participants reach out to the international visitors desirous to source from India. There were 84 exhibitors from India (53 in Texworld and 31 in Apparel Sourcing) of which 31 participated through Texprocil. Strategically located near the Elite Section, in Hall 4, the Council’s information booth saw a steady stream of visitors, the information of which was separately circulated as trade enquiries received at the Fair.

Shri Madhukumar Reddy, Joint Secretary, Ministry of Textiles, represented the Ministry of Textiles and addressed a press conference on the first day of the trade show and highlighted the capacities and capabilities of the Indian textile industry to meet the sourcing requirements of all types of international buyers, be it small or large. He also invited the trade community to visit the mega event called ‘Textiles India’ from June 30 to July 2 at Gandhinagar, Ahmedabad where all the textile products will be exhibited under one roof. Shri Madhukumar Reddy, Joint Secretary, Ministry of Textiles brought out the significance of the “Make in India” campaign and the advantages of participating in the “Textile India 2017” show being organised at Gandhinagar, Gujarat from June 30 – July 2, 2017.

Texprocil also organized a road show titled “Interactive Meeting on Incredible Textiles of India” wherein Indian exhibitors and international buyers were invited for the meeting. The Meeting started with a presentation made by Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL on India as a hub for textile manufacturing and also as an attractive destination for investments. Shri Manish Prabhat, Chef de Mission, Embassy of India, Paris highlighted the growing investment opportunities in India and also assured all help and support from the Embassy to Indian companies who face any issues while exporting to France.

Cairo Fashion & Tex Fair– a unique platform for interactionsA glimpse of the Council organized Indian Pavilion at Cairo Fashion & Tex Fair,

held in Cairo, Egypt, from 2nd to 5th March, 2017. The four-day event provided a platform for the Indian businessmen to show case their products and

to interact with Egyptian and foreign visitors.

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60TH CAIRO FASHION & TEx FAIR, CAIRO, EGYPT (2-5 MARCH, 2017)

A delegation from the Cotton Textiles Export Promotion Council of India (TEXPROCIL) comprising 14 Indian textile companies participated in the 60th edition of the International Fashion & Textile Exhibition “Cairo Fashion & Tex” held at Cairo International Conference Centre from 2nd to 5th of March, 2017. The Council participated in this exhibition for the first time and the four-day event provided a platform for the Indian businessmen to interact with Egyptian and foreign visitors, showcasing their products and exploring business opportunities.

The Embassy of India in Cairo organized a press briefing session on the visit of Texprocil delegation on 1st March, which was attended by the economic editors and journalists from the mainstream Egyptian print and visual media. The Ambassador of India to Egypt, H.E. Mr. Sanjay Bhattacharyya addressed the media and briefed them on the current visit of the delegation and presented an overview of the textile industry in India. He also inaugurated the India pavilion at the exhibition on the first day of the Fair. The Indian participants were overall satisfied with the enquiries received and many of them managed to get good sales leads during the exhibition.

PREVIEW IN DAEGU 2017, DAEGU, SOUTH KOREA (8-10 MARCH, 2017)

The Council participated in PREVIEW IN DAEGU 2017 held in Daegu, South Korea from March 8-10, 2017. Preview in Daegu is an established trade fair which takes place every year. 30 Indian companies participated in the fair through the Council. The Indian Ambassador in South Korea, Shri Vikram K. Doraiswami inaugurated the India Pavilion at the fair on March 8, 2017. Subsequently, the Ambassador interacted with all the Indian companies.

On the sidelines of the fair, an MOU was signed by Shri Ujwal Lahoti, Chairman, TEXPROCIL, Mr. Eui Yeol Lee, President,Daegu Gyeongbuk Textile Industries Association and Mr.Chang-GonBaek,CEO, Daegu Convention& Visitors Bureau on March 8, 2017. The MOU was for the promotion of exchanges between the textile and fashion industries of India and South Korea. At a dinner meeting held on March 9, 2017, which was attended by CEOs and Presidents of Korean Textiles Industry as well as Textiles Associations in South Korea besides other dignitaries, Shri A. Ravi Kumar, Joint Director, TEXPROCIL made a presentation on “Textiles in India - Prospects for Future Growth”. The presentation covered the relevance of the textile sector in the Indian economy, the strengths of the Indian textiles industry, presence of international brands in India and opportunities for the Korean textile industry in India for trade and investments. On the sidelines of

Trade & Investment Opportunities – S. KoreaThe Council organized Indian Pavilion at Preview in Daegu, held in Daegu, South Korea, from 8-10 March, 2017, was inaugurated at the hands of the Indian Ambassador in South Korea, Shri Vikram K. Doraiswami (centre) on March 8, 2017 along with Shri Ujwal Lahoti, Chairman, Texprocil (2nd from Right). During the fair, the B2B. Meetorganized by the Councilsaw about55 buyers from South Korea hold successful meetings with the Indian companies.

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9TH MEETING OF THE INDIA-EU JOINT WORKING GROUP (JWG) ON TExTILES AND CLOTHING, BRUSSELS, BELGIUM (13-14 APRIL, 2016)

The 9th meeting of the EU-India Joint Working Group on Textiles and Clothing along with other bilateral meetings was held on 13-14 April, 2016 at Brussels, Belgium. Smt.Sunaina Tomar, Joint Secretary, Ministry of Textiles, Government of India led the Indian side which included Executive Director, Texprocil; Executive Director, SRTEPC; Additional Secretary General, AEPC and Deputy Director, Textiles Committee as members. Mr. Luc Devigne, Head of Unit, Market Access, Industry and Raw-Materials; DG, Trade and other senior officials from the office of the DG, Trade participated in the discussions.

EU side raised issues relating to the need for marking of fibre composition in the selvedges, removal of the pre-shipment inspection certificate attesting the fibre composition of woollen textiles and woollen blended fabrics for foreign manufacturers, IPR enforcement in India and India’s tariff calculation and taxation system.

The Indian side took up issues relating to labelling, EU’s discriminatory GSP Scheme, impact of REACH regulation on Indian exporters amongst others. Both sides gave clarifications on the issues raised at the meeting and agreed to resolve matters of further concern through mutual consultations and discussions.

2016 IMPORTED YARN FORUM HANGZHOU CITY, CHINA (16-17 JUNE, 2016)

“Imported Yarn Forum” is being organised by CCF Group, China for the past five years and the Council has been successfully using this platform to popularize advantages of using Indian yarn and grey fabric for conversion into value added textiles by the Chinese enterprises. At the 5th edition of the Imported Yarn Forum held at Hangzhou city, China on 16th & 17th June 2016, presentations were made by eminent speakers from India, China, Vietnam, Taiwan, Pakistan and USA.

In his presentation, Shri Ujwal Lahoti, Vice Chairman, Texprocil outlined the current status of the Indian Textile industry, strengths of the Indian spinning sector, trade and investment scenario in Indian textile sector and the need for addressing tariff issues. The “Make in India” initiative and the way forward to increasing bilateral trade in textile particularly the advantages of using Indian yarn for conversion into value added textile products by the Chinese manufacturers were also highlighted.

TRADE DELEGATIONS / CONFERENCES / MEETINGS / PRESENTATIONS

the fair, the Council organized B2B meetings for the Indian Companies. About 55 buyers from South Korea participated in the B2B meetings and held fruitful meetings with the companies.

YARN ExPO & INTERTExTILE SHANGHAI APPAREL FABRICS, SHANGHAI, CHINA (15-17 MARCH, 2017)

In order to showcase the presence of the Indian suppliers in the Chinese market and to facilitate an increase in India’s export of cotton Yarn and Fabrics, the Council organized group participation of its Members at Intertextile Shanghai Apparel Fabrics & Yarn Expo Fair, Shanghai, China from 15 to 17 March 2017. Forty two Indian exhibitors participated at Yarn Expo. This year’s fringe programme featured 24 seminars and international & domestic Trend Forums, all of which offered the industry information and inspiration with both international and domestic focuses.

Dr. Siddhartha Rajagopal, Executive Director, Texprocil made a presentation at a seminar on ‘India: A Global Textile Manufacturing Hub’. The presentation covered advantages of Indian Textile industry and investment opportunities. More than 200 participants from China and other countries attended the seminar.

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ROAD SHOWS IN CHINA - TO PROMOTE “TExTILES INDIA 2017” (27 MARCH, 2017)

In order to promote “Textile India 2017 Show” in Gandhinagar, Gujarat the Ministry of Textiles sent a trade delegation under Ms. Pushpa Subramaniam, Additional Secretary, Ministry of Textiles which included the Chairman Texprocil. The Road Show was held on 27th March, 2017 at prominent textile manufacturing and trade city of Shaoxing in the Zhejiang Province. The delegation met the Vice Mayor of the city and local Chambers of Commerce and local textile associations.

Meetings were also organised in the adjoining city of KEQIAO another big textile hub. Presentations were made on the TEXTLE INDIA 2017 EXHIBITION to be held in GANDHI NAGAR from June 30 to July 2, 2017. Over 140 people attended the meeting and many showed interest in setting up manufacturing units in India. The Textile Associations and Chambers of Commerce have shown interest in bringing delegations to India for the Exhibition.

After the meeting in SHAOXING and KEQIAO, the delegation went to the Southern part of China to the city of DONGGUAN, another prominent textile manufacturing hub in the GUANGDONG Province. Meetings were organised with the leading Textile and Garment Associations, Trade Forums. Around 150 participants attended the meeting. A detailed Q & A Session was held to understand the strengths of the Indian Textile industry and the Government’s policies.

Textiles India 2017 – Promotions in ChinaA trade delegation under Ms. Pushpa Subramaniam, Additional Secretary, Ministry of

Textiles (5th from Right) along with Shri Ujwal Lahoti, Chairman, Texprocil (3rd from Left) and other delegates visited China for the Road Show held on

27th March, 2017 to promote Textiles India 2017 fair at the prominent textile manufacturing and trade city of Shaoxing in the Zhejiang Province. The delegation met the Vice Mayor of

the city and local Chambers of Commerce and local textile associations.

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TExPROCIL welcomes Chinese Delegation The Council welcomed a delegation representing the China Textile Information Network (CTIN) visiting India from 16-20, November 2016. Some of the delegates were keen to source cotton yarn and value added home textiles from India, while others were looking forward to undertake in-depth business discussions and negotiations.

VISIT OF OVERSEAS DELEGATION TO INDIA VISIT OF CHINA HOME TExTILE ASSOCIATION (CHTA) DELEGATION (12-18 NOVEMBER, 2016)

An eight member of delegation from China Home Textile Association (CHTA) visited Baruch (Gujarat), Delhi and Jaipur to coincide with the ITMF Conference held in Jaipur, India from 17-19 November, 2016. Purpose of the visit was to meet with leading home Textile manufacturers in India to discuss business opportunity for mutual benefit.

The delegation visited the manufacturing facilities of leading Companies like Alps Industries, Birla Century and Trident Industries. During the factory visits and interactive meetings with these companies, the Chinese delegation showed keen interest to understand cost components in manufacturing of certain varieties of value added home textiles and possibility of business tie-ups.

Some of the members of the CHTA delegation were large scale retailers having their own brands popular in China. These companies are exploring possibility of sourcing certain varieties of bedlinen and curtains from India and sell in China with their own brands. Two of the delegates extended their stay to meet with some of large manufacturers of Home Textiles in India. Prospects of enhanced sourcing of home textiles from India in the near future are bright.

VISIT OF CHINA TExTILE INFORMATION NETWORK (CTIN) DELEGATION (16-20 NOVEMBER, 2016)

Apart from attending the ITMF annual conference, a 15 member delegation representing the China Textile Information Network (CTIN) visited several textile factories in and around Jaipur. The purpose of the visit of this delegation was to understand the level of labour skills and designing creativity in micro and small scale textile manufacturing sector. Some of the members of the delegation were keen to source cotton yarn and value added home textiles from India, while others were looking forward to visit India again to undertake in depth business discussions and negotiations.

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SEMINARS AND WORKSHOPSSEMINAR ON ECGC POLICIES AND FOREx MANAGEMENT (4 AUGUST, 2016)

The Council conducted a Seminar on ECGC Policies and Forex Management at the auditorium located at its office in Mumbai on August 4, 2016. The seminar was well attended by the members of the Council. Senior officials from ECGC LTD and YES Bank made presentations on various topics in the seminar.

SEMINAR ON IMPLICATIONS OF GST ON TExTILE SECTOR, MUMBAI (14 SEPTEMBER, 2016)

In order to understand the implications of change in taxation structure, the council organized a seminar on GST at Mumbai on 14th September, 2016 with M/s. Laksmi kumaran and Sridharan as knowledge partners. The Seminar was well attended and a number of queries relating to operational issues were raised. Some of the issues discussed related to admissibility of VAT input credit available on rawmaterials, work in progress, finished goods, capital and spare parts lying in stock on or before 31 March,2017 i.e. coming into force of GST, export of Goods under Bond/LUT; continuation of export promotion schemes etc.

Trade Facilitation: Seminar on GSTThe Councilorganized a seminaron GST at Mumbai on 14th September, 2016 with

M/s. Laksmikumaran and Sridharan as knowledge partners. At the well-attended Seminara number of queries relating to operational issues were raised by the participants.

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STUDIES UNDERTAKEN IN 2016-17As part of its efforts to collect, collate and disseminate information, the Textile Intelligence Centre at the Council commissioned various studies during the year 2016-2017 as follows:

1. Enhancing competitiveness and increasing employment potential of Indian textile sector (May 2016)

Texprocil, in continuation of it’s ongoing initiatives to understand the various issues affecting our export performance, the Council has commissioned a study on “Enhancing Competitiveness and Increasing Employment Potential of Indian Textile Sector”, undertaken by Ernst & Young LLP (EY), with the objective to assess the potential to increase export of textiles in view of ongoing FTA negotiations with major importing and consuming countries and provide greater opportunities for increasing employment especially amongst the women workforce in rural India across the country. The study clearly pointed that finalising FTA with EU, Canada and Australia will be a big boost in increasing India’s export of Textile & Apparel products provided necessary policy level support to the textile sector is extended by the Ministry of Textiles by recommending deserving requirements for the growth of the industry.

2. Status of Indian Spinning Sector and Support Needed for Sustenance of Industry (September 2016)

A study on “Status of Indian Spinning Sector and Support Needed for Sustenance of Industry” was undertaken by Wazir Advisors on behalf of the Council. A detailed analysis of the current situation and incentives & policy interventions required were analysed in detail in the report. The study highlighted the urgent need to give support to the spinning sector by extending interest rate subvention and Merchandise Exports from India Scheme (MEIS) benefits to cotton yarn.

3. Weaving the Way: Breakout growth agenda for the Indian Apparel, Made-ups & Textile industry (February 2017)

This joint study with Boston Consulting Group (BCG) and all the Textile related Councils and Associations was conducted during February 2017 to formulate strategies to fulfil the vision to empower the industry and to present all stakeholders, including the government, with thoughts on what is expected from them to take the textile chain to a higher orbit of growth. The study clearly brought out the job generating potential of the Garment and Madeup sector and urged for rebating all the State/Central levies including cross subsidy on power, electricity duty apart from labour reforms.

4. Unleashing Potential of Fabrics Sector Exports and Employment Prospects 2025 (March 2017)

The Council had commissioned a study on “Unleashing Potential of Fabrics Sector Exports and Employment Prospects 2025” undertaken by Technopak Advisors Pvt Ltd. In order to explore the prospects of expanding the fabric base and developing exports. The study recommended that the world fabric trade is sizable and given India’s miniscule share in comparison to China in world fabric market, there are large opportunities to create value addition, employment and exports in complete textile value chain. For India to become a key fabric player in the International market, it is of paramount importance for the Government to provide concessions and boost the fabric manufacturing industry by rebating all the state levies like electricity duty, cross subsidy on power etc.

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ExPORT SERVICES ACTIVITIES GOVERNMENT RULES & REGULATIONS

Recognizing the fact that export benefits under the Foreign Trade Policy, Duty Drawback, FTAs/RTAs which India enters into with other Countries / Region and the Government policies continue to play a crucial role in the exports of Cotton textiles, the Council took the primary responsibility of facilitating the creation of an enabling environment and infrastructure for accelerated growth of exports of cotton textiles. The core functions in this regard included providing inputs / suggestions to the Government for formulation and implementation of appropriate trade and commercial policies for increasing exports of cotton textiles.

The Council made several representations to the Government on various issues affecting the exporters based on the feedback received from its member. Most of the recommendations made by the Council were accepted and implemented by the Government. Many procedural issues were also resolved on account of the Council’s representations.

However, there were still some areas which remained unresolved despite persistent representations to the Government by the Council. A decision is yet to be taken by the Government on the Council’s representations for an increase in the MEIS rate for export of made ups to the EU from 2% to 5%, to include Cotton Yarn under the MEIS and 3% Interest Equalization Scheme and also to cover merchant exporters under the 3% Interest Equalizations Scheme. Despite several representations, some of the exporters continue to face problems with regard to the uploading of shipping bill details on the Export Data Processing and Monitoring System (EDPMS) system of RBI.

FOREIGN TRADE POLICY / UNION BUDGET PROPOSALS

The Council made an in-depth analysis of the various provisions of the Foreign Trade Policy & Procedures and based on such analysis and feedback from member-exporters, various issues were taken up with the Director General of Foreign Trade, Ministry of Commerce, with a view to make the Foreign Trade Policy (FTP) operationally - smooth, result-oriented and exporter-friendly. During the year, the Council had sent several suggestions on the FTP to the Ministry of Commerce & Industry for in term review of the FTP 2015-20. The Council also sent its proposals on the Union Budget. Further, amendments in Duty Drawback rates, Customs and Central Excise Rules & Regulations were constantly monitored and the implications of such changes were analysed and corrective measures suggested.

DUTY DRAWBACK SCHEME

Majority of the members of the Council operate under the Duty Drawback Scheme. The Council took all necessary steps to ensure that the Duty Drawback rates for Cotton textiles are fair and justified. During the year, the Council collected data from member-exporters and submitted detailed proposals for an increase in the Duty Drawback rates for Cotton Textiles.

The Council made presentation on Drawback Proposals before the Drawback Committee consisting of the (Late) Dr. Saumitra Chaudhuri, Shri G.K. Pillai, Shri Gautam Ray and Shri Y.G. Parande in Coimbatore on 5/7/2016. In its presentation, the Council suggested an increase in the Drawback rates as well as Drawback caps. The presentation covered export products like Cotton Yarn.

Subsequently, the Council made another presentation on Drawback Proposals before the Drawback Committee in Mumbai on 27/8/2016. In its presentation, the Council suggested an increase in the Drawback rates as well as Drawback caps. The presentation covered export products like Woven Fabrics, Denim Fabrics, Made-ups and Technical Textiles. The Council’s proposal to incorporate a separate entry in the Drawback Schedule for “Blankets and travelling rugs made of blend containing Cotton and Manmade fibres” has been accepted and the entry has been included in the Drawback Schedule.

43

GOODS & SERVICES TAx (GST)

The Council sent its views and suggestions on the various provisions under the draft GST Laws concerning exports and export promotion schemes from time to time.

REBATE OF STATE LEVIES (ROSL) SCHEME

The Rebate of State Levies (ROSL) scheme for Garments was announced in August 2016. The objective was to provide rebate of State levies consisting of State VAT / CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished garments. However, “Made ups” were not covered under the scheme.

The Council represented to the Government that Made ups should also be covered under the ROSL scheme since both “Garments” and “Made ups” fall under the category of “Cut & Sew” products and the incidence of State levies are more or less similar in the case of both the product categories. The Government accepted the Council’s proposal and covered “Made ups “under the ROSL scheme in March 2017.

The Council has also proposed for the extension of ROSL to “fabrics”. A decision in this regard is awaited.

GRIEVANCES OF ExPORTERS / PROCEDURAL PROBLEMS / TRADE FACILITATION SERVICES

The Council recognizes that information is the key for success in exports. In this regard, the Council has put in place a system to provide authenticated information and support services to member-exporters at the right time. All important and relevant Notifications and Circulars on various issues were systematically disseminated by the Council to its members.

The Council also took up problems faced by exporters at the operational level with appropriate Government bodies such as Customs, Central Excise, Licensing authorities, Banks, ECGC etc. The Council also assisted the member exporters in getting their Excise Rebate / Duty Drawback claims, Service Tax and VAT refunds with minimum delay.

The Council’s representative regularly attended the Custom’s Trade Facilitation Meetings - and the Grievance Committee meetings held by Jt. DGFT, Mumbai for redressal of such problems. Moreover, the Council also attended to complaints from exporters against overseas buyers on issues like non-payment against Export Bills, quality problems raised by the exporters and others. The Council has also put in place a system to deal with various queries from member-exporters on Policy & Procedural issues wherein clarifications are issued without delays.

OTHER SIGNIFICANT ISSUES

The Council recommended to the Government to withdraw benefits under GSP+ given to Pakistan by the EU on grounds of violation of human rights and sponsoring terrorism.

The Council sent a detailed Note to the Ministry of Textiles on the various issues arising from the FTAs signed by India with different countries and regional group.

The Council proposed to the Government to take up the issue of the additional duties imposed by Turkey on textiles imported from India with the Turkish Government so that the duties get abolished. The Council had also proposed to the Government to initiate dialogue with the Chinese Government for reduction in import duties on fabrics exported from India to China.

On the “Draft Export Policy” proposed by DGFT”, the Council suggested that exports of cotton yarn should be allowed freely and no registration formalities prior to shipments should be introduced.

Post-Demonetisation, the Council played an active role in facilitating and educating textiles exporters to adopt digital mode of payment and open bank accounts.

44

With regard to the Anti-dumping investigation initiated by the Government of India on import of Bare Elastomeric Filament Yarn from China PR, Vietnam, Taiwan and South Korea, the Council had represented that the imposition of Anti-dumping duties will adversely affect the domestic user industry including the manufacturer exporters.

REPRESENTATIONS ON MAJOR ISSUES

Some of the important issues on which representations / proposals were submitted to the Government are as under:

Enhancement of the Duty Drawback rates and Drawback caps for Cotton Textiles – Yarn, Fabrics, Made-ups and Technical Textiles.

Extension of the benefit of 3% Interest Equalization Scheme to the Merchant exporters.

Extension of the benefit of MEIS and 3% Interest Equalization Scheme to exports of Cotton Yarn.

Increase in the MEIS rate for export of Made ups to the EU from 2% to 5%, till the conclusion of the Indo-EU FTA.

Increase in the duty free import entitlement against exports of cotton made-ups from 1% to 5% at par with readymade garments.

Reduce logistics costs / transaction costs like Terminal Handling Charges, Bunker Surcharge, shipment costs incurred at the ports and CFS while exporting.

Problems faced by the exporters in getting Duty Credit Scrips under the Incremental Export Incentivization Scheme (Quarterly) from the Regional offices of DGFT.

Problems faced by the exporters due to non - transmission of EDI Shipping Bills from Petrapole Customs to the DGFT website.

Congestion and lack of support infrastructure at Petrapole, Land Port, West Bengal.

45

TRADE DEFENSE MEASURES

ANTI SUBSIDY INVESTIGATION INITIATED BY PAKISTAN ON THE IMPORT OF COTTON YARN FROM INDIA

Pakistan initiated an Anti-Subsidy Investigation on the import of Cotton Yarn (counts 55.5 and above) on April 20, 2016. The investigating authority, National Tariff Commission (NTC) had identified 60 Indian companies as interested parties and had sent questionnaires to them. The Council engaged the services of the Law firm Lakshmi Kumaran & Sridharan to prepare the Injury Submission and also to attend the Public hearing. A delegation from the Government of India consisting of Shri S. S. Das, Director, DGAD, Ministry of Commerce & Industry and Shri A. Ravi Kumar, Joint Director, TEXPROCIL visited Islamabad, Pakistan and had consultation with the National Tariff Commission on June 21, 2016. Shri Anurag Singh, First Secretary (Eco. & Pol.) and Shri Sajan Paul, Attache from the office of the Indian High Commission in Islamabad were also present during the consultation meeting. In the meeting, the delegation pointed out to the National Tariff Commission that out of the 26 schemes, 17 schemes are not operational. Out of the remaining 9 schemes most of the schemes were not contingent upon exports and are therefore, not subsidy. The delegation gave a detailed explanation of the all the schemes mentioned in the petition by NTC. TEXPROCIL also submitted a Preliminary Submission to the National Tariff Commission on 25.6.2016. In January 2017, Pakistan imposed countervailing duty ranging from Rs.26.89 to Rs. 55.80 per kg for period of four months.

ANTI-DUMPING INVESTIGATION INITIATED BY PAKISTAN ON THE IMPORT OF COTTON YARN FROM INDIA

Pakistan initiated an Anti-dumping investigation on the import of Cotton Yarn (counts 55.5 and above) from India. The investigation was initiated on 20.8.2015. A team of officials from the investigating authority, National Tariff Commission, Islamabad had visited India for a verification visit from November 12 to 30, 2016. The team verified the records of 7 Indian Companies. The National Tariff Commission held a personal hearing at its office in Islamabad on 26.12.2016. The hearing was attended by Dr. Siddhartha Rajagopal, Executive Director, TEXPROCIL, Shri A. Ravi Kumar, Joint Director, TEXPROCIL and Shri Arpit Bhargava, Advocate and pointed out the various infirmities in the investigation. A decision on the imposition of Anti-dumping duties are yet to be taken by the investigating authority.

WORKING OF SUB COMMITTES

The Sub Committees constituted by the Council for undertaking detailed export promotional programmes for Yarns, Fabrics and Made-ups met regularly during the year.

MEMBERSHIP PROFILE

The Membership Profile of the Council comprising Members and Registered Textile Exporters (RTEs) is given below:-

Particulars As on 31st March 2017

As on 31st March 2016

Members 179 172

Registered Textile Exporters (RTEs) 2621 2639

TOTAL 2800 2811

46

COMPOSITION OFTHE COMMITTEE OF ADMINISTRATION

The newly constituted Committee of Administration at its meeting held on 21st November 2016 elected Shri Ujwal R. Lahoti as Chairman for a period of 2 years (2016-18). Subsequently, as per the requirement of Para 2.92 of the FTP2015-20, Dr. K. V. Srinivasan was elected as Vice Chairman of the Council a period of 2 years (2016-18) by the Committee of Administration at it's meeting held on 29 November 2016.

The Composition of the Committee and Status of Committee Meetings attended by Members is given below: -

SR. NO. NAME NO. OF MEETINGS ATTENDED OFFICE BEARERS

1 Shri Ujwal R Lahoti, Chairman 72 Dr. K V Srinivasan, Vice Chairman 5

OTHER MEMBERS3 Ms. Preeti M Sheth 74 Shri Arun Todi 75 Shri R K Dalmia 66 Shri Ketan Manek 67 Shri Prakash Shah 68 Shri Tushar Ruparelia 59 Shri Vishnukumar Jalan 510 Shri K Hari Thiagarajan 411 Shri Parag H Udani 412 Shri Manojkumar Patodia 313 Shri Umang Patodia 314 Ms. Mridula Ramesh 315 Shri Manikam Ramaswami (till 21.11.2016) 216 Shri Aditya Krishna Pathy 217 Shri M.Sivakannan (from 21.11.2016) 218 Shri K.M Poddar (from on 21.11.2016) 219 Shri Sunil Patwari (till 21.11.2016) 220 Shri S.K Khandelia 121 Shri Mukund Choudhary (till 21.11.2016) 122 Shri S. Dinakaran, Nominee SIMA 123 Shri Maninarayanan Velayutham (from 21.11.2016) 124 Shri D L Sharma 125 Shri Rajesh Mandawewala 026 Dr. Kavita Gupta, Textile Commissioner 027 Ms. Sunaina Tomar, JS, MoT (till 21.11.2016) 028 Dr. Subrata Gupta, JS, MoT (from 21.11.2016) 029 Shri Naishadh Parekh (from 21.11.2016) 030 Shri T. Rajkumar (till 21.11.2016) 031 Shri Ashwin Chandran 0

During fiscal year 2016-17, the Committee met 7 times i.e. four (4) times prior to the AGM and three (3) times post AGM.

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The 62nd Annual General Meeting was held on Monday, 21st November 2016 at Panorama, Hotel Ambassador, Churchgate, Mumbai. Fourteen (14) Member Exporters attended the meeting.

Shri R.K Dalmia, Chairman, took the chair and called the meeting to order after ascertaining that requisite quorum was present.

Greeting the members at the AGM, Chairman stated that the global outlook for 2016 varied between the subdued and the grim as alerts were sounded on possible global deflation with a fall in trade. The IMF had stated that a “broad based phenomenon” of low inflation fed by a collapse in commodity prices and faltering demand could lead to a deflation trap in the advanced economies. The WTO had also forecasted that global trade volumes are expected to rise only by 1.7 per cent this years and it would be the slowest increase since the 2008 financial crisis.

Referring to the recent developments on November 8, 2016, he stated that the de-monetization of currency and the election of the President in USA both had far reaching consequences in terms of the way business and trade are likely to be conducted in the coming years.

The Indian economy, Shri Dalmia pointed out had grown by 7.1 per cent during the fiscal year 2014-15 and registered a modest growth of 7.2% in FY 2015-16. Thus, India today stands out as a shining example of stability and an outpost of opportunity amongst a gloomy landscape. The overall prospects for 2016-17, Shri Dalmia said were positive as the growth momentum was expected to remain robust. However, the decline in exports in spite of the country making good economic progress, was a matter of major concern, Shri Dalmia pointed out.

The world trade in textiles and clothing, Shri Dalmia stated is estimated at US$ 745 billion in the year 2015 and was expected to grow at a CAGR of 6 per cent in the coming years, increasing to US$ 1,120 billion by 2020 with clothing occupying the major share followed by made-ups, fabrics and yarn.

As regards exports of cotton textiles from India, during fiscal year 2015-16, while cotton made-ups showed a positive growth of 2.87 per cent in value terms cotton fabrics declined by about (-) 11.95 per cent during the fiscal year 2015-16. Export of Cotton Yarn, on the other hand, showed a positive growth of 4.29 per cent in volume terms but a decline of 8.32 per cent in value terms during this period, mainly on account of price pressures on margins.

Shri R.K Dalmia stated that studies have shown that reducing operating costs, providing an enabling policy environment and enhancing productivity levels remain the three major pillars on which competitiveness can be sustained by emerging economies like India. He opined that a concerted effort to build a strategy based on these pillars can serve as a good starting point to enhance export performance in the present era of slow and fragile global recovery.

Referring to the internal and external challenges confronted by the trade and Industry in India during the fiscal year 2015-16, Shri Dalmia stated that availability of raw material, ameliorating the distress in the spinning sector, dealing with advances in technology remain the key internal challenges. The external challenges related to preferential trade agreements, relocation and upgradation by Chinese textile industry, rising protectionist sentiments.

Considering these challenges, Shri Dalmia opined that an adequate policy support from the Government to needs to be provided in order to achieve the ambitious vision of exports of USD 300 billion & 20% share of global trade by 2024-25 as envisaged in the Vision & Action Plan of the Government for the Indian textile

62nd ANNUAL GENERAL MEETING

48

and apparel sector. Shri Dalmia also welcomed the special package given to Garments and hoped that it will be extended to the Home Textiles sector at an early date.

Shri Dalmia also stated that the industry needs to take positive steps towards building an efficient and cost competitive textile value chain and the stakeholders need to reinforce their focus on brand building & strengthening their innovation capacity. While trends in world trade indicate need to invest in value added products, we also need to diversify the export basket of consumables like fabrics to manufacture new products in the technical textile sector.

At the same time, Shri Dalmia also pointed out that there was a need to create a conducive environment to promote greater investment in human capital, research & development and high value production in order to meet with the disruptive impact of advancement in automation and technology.

Shri Dalmia stated that during his tenure in office as Chairman of Texprocil, apart from the wide ambit of export promotion activities, the Council continued to sensitize the Government through various representations on the diverse needs of industry and stakeholders. The Council had drawn up a comprehensive program to target new markets like Myanmar, Iran, Indonesia and Mexico apart from intensifying promotional efforts in markets like China, Colombia, Turkey, Egypt & Bangladesh. On its part, the Government had also drawn up an integrated marketing plan covering all aspects of textile and apparel trade with the involvement of apex industry bodies.

He stated that a number of studies were also commissioned by leading consulting firms like Boston Consulting Group, Ernst & Young, Gherzi International, Wazir Advisors – on various aspects of textile trade including exploring the market opportunities in Africa.

He hoped that all these reports have served the objectives of sensitizing the trade and industry on the immense opportunities available to it for expanding trade. At the same time, he stated that the various agencies of the Government have taken note of the enormous potential of the textile industry and trade in promoting the goals of inclusive growth and higher employment.

62nd AGM of TExPROCIL - MumbaiShri R. K Dalmia, Chairman, delivering his address in the presence of the Office Bearers of the Council.

49

He informed the members that the Council had also undertaken comprehensive review of the promotional campaign of the Council which was unveiled by the Hon’ble Minister of Textiles, Smt. Smriti Zubin Irani at the TEXPROCIL Award Function held in Mumbai on 21st October 2016. As a part of the campaign, a new look promotional material comprising brochures, flyers, etc. had been introduced that brought out the feeling of luxury of cotton textile that inspires everyone, owing to its natural properties.

The General Body approved and adopted the Committee’s Report, Annual Audited Accounts, Auditor’s Report & Appointment of Auditors for the year 2016-17 including fixing of their remuneration & passed the special resolution relating to modification in the Articles of Association of the Council.

Following Members were elected as Committee Members in Place of those Committee Members who retired by rotation.

Category: Export Performance between Rs.5 Crores and Rs. 25 Crores

• Shri M.Sivakannan, Amaravati Textiles, Karur • Shri Arun Todi, Incotex Impex Pvt Ltd, Mumbai • Ms. Preeti M Sheth, Sheth Investments & Trdg. Co. Pvt. Ltd, Mumbai • Shri Krishna Murari Poddar, Vigneshwara Exports Ltd., Mumbai

Category: Export Performance of Rs.25 Crores and above

• Shri K Hari Thiagarajan, VTM Ltd, Madurai • Shri Umang Patodia, Patspin India Ltd., Kochi • Shri D.L Sharma, Vardhman Textiles Ltd. Ludhiana

50

THE SIXTY-SECOND ANNUAL REPORT OF THE COMMITTEE OF ADMINISTRATION ON THE BALANCE SHEET AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2017 TO THE MEMBERS OF THE COUNCIL AS REQUIRED UNDER ARTICLE 71 OF THE ARTICLES OF ASSOCIATION OF THE COUNCIL

The Members of the Committee of Administration submit the Audited Balance Sheet and Income and Expenditure Account for the year ended 31st March, 2017.

The Income and Expenditure Account after providing for all the known and anticipated charges & depreciation of Rs. 13,36,937/- on fixed assets disclosed an excess of Income over Expenditure of Rs. 1,27,10,279/-.

Particulars of Employees and Related Disclosures:

None of the employee is in receipt of remuneration in excess of the limits prescribed under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 read with Section 134 of the Companies Act, 2013.

The assets of the Council are kept in proper order.

Members of the Committee of Administration’s Responsibility Statement:-

Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, your Members of the Committee of Administration to the best of their knowledge and belief and according to the information and explanations obtained by them, hereby confirm that:

(a) in the preparation of the annual accounts for the financial year ended 31st March, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(b) the Members of the Committee of Administration have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year ended 31st March, 2017 and of the Income and Expenditure of the company for that period;

(c) the Members of the Committee of Administration have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the Members of the Committee of Administration have prepared the annual accounts on a going concern basis; and

(e) the Members of the Committee of Administration have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

THE SIxTY-SECOND ANNUAL REPORT

51

Information on the Directors / Committee members / KMP:

Shri Rajesh Mandawewala, Shri S K Khandelia, Shri Prakash Shah, Ms. Mridula Ramesh, Shri Manojkumar Patodia and Shri Ketan Manek are retiring by rotation and being eligible to offer themselves for re-election.

Shri K M Poddar has resigned as a Member of Committee of Administration of the Council on 09.08.2017.

Following members were co-opted during the year 2016-2017:

• Dr. Subrata Gupta, IAS, Joint Secretary, Ministry of Textiles, Govt. of India • Shri Naishadh Parekh • Shri S Dinakaran • Shri Parag Udani • Shri Ashwin Chandran • Shri Vishnukumar Jalan • Shri Maninarayanan Velayutham

NUMBER OF BOARD / COMMITTEE MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

During the Financial Year 2016-17, the Company held 07 board / Committee meetings of the members as per Section 173 of Companies Act, 2013 which is summarized below. The provisions of Companies Act, 2013 were adhered to while considering the time gap between two meetings.

Sr. No. Date of Meeting Board

StrengthNo. of Directors

Present

1 06.05.2016 26 16

2 01.07.2016 26 17

3 12.09.2016 26 8

4 21.10.2016 26 16

5 21.11.2016 20 12

6 29.11.2016 27 9

7 10.02.2017 27 14

RELATED PARTY CONTRACTS / ARRANGEMENTS:

There are no related party contracts / arrangements entered during the year under review.

ExTRACT OF ANNUAL RETURN

The Extract of Annual Return as required by the provisions of the Companies Act, 2013 and the rules thereto is annexed herewith for your kind perusal and information. (Annexure: 1)

52

AUDITORS AND AUDITORS REPORT:

There are no qualifications or adverse remarks in the Auditors’ Report for the financial year ended 31st March, 2017 which requires any clarification/ explanation. The Notes on financial statements are self-explanatory, and needs no further explanation.

Further the Auditors’ Report for the financial year ended 31st March, 2017 is annexed herewith for your kind perusal and information.

As per the Government directives, it was required to appoint new statutory auditor in place of the retiring statutory auditor after the completion of their term of three years of appointment and it was proposed to appoint M/s. Nipun Sudhir & Associates, Chartered Accountants, (Firm Registration Number 126168W) as the Statutory Auditor of the Company for the financial year 2017-18 in place of M/s. B. K. Khare & Co., Chartered Accountants.

M/s. Nipun Sudhir & Associates, Chartered Accountants, (Firm Registration Number 126168W) have consented to act as the Auditors of the Company and they have given eligibility certificate accordingly.

LOANS, GUARANTEES AND INVESTMENTS:

There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review.

INFORMATION UNDER THE SExUAL HARASSMENT OF WOMEN AT WORKPLACE [PREVENTION, PROHIBITION AND REDRESSAL] ACT 2013:

The Company is committed to provide a safe and conducive work environment to its employees. During the year under review there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ORDER OF COURT

There were no proceedings before any regulator or court or tribunal during the year, hence there are no material orders impacting the going concern status and company’s operation in future.

ACKNOWLEDGEMENT

The Committee Members wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers, Vendors and members during the year under review. Your Directors / Committee Members also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company.

FOR AND ON BEHALF OF THE COMMIITTEE

UJWAL LAHOTI CHAIRMAN

DIN: 00360785

Date: 9th August, 2017 Place: Mumbai

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FORM NO. MGT 9 (ANNExURE I)ExTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2017 Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of

the Company (Management & Administration) Rules, 2014.

I. REGISTRATION & OTHER DETAILS:

1. CIN U91110MH1954NPL009385

2. Registration Date 04/10/1954

3. Name of the Company THE COTTON TEXTILES EXPORT PROMOTION COUNCIL

4. Category/Sub-category of the Company Company Limited By Guarantee Company Licensed Under Section 25

5. Address of the Registered office & contact details

5Th Floor, Engineering Centre,9 Mathew Road, Mumbai -400004.

6. Whether listed company NO

7. Name, Address & contact details of the Registrar & Transfer Agent, if any. N.A.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY(All the business activities contributing 10% or more of the total turnover of the company shall be stated)

Sl. No. Name and Description of main products / services

NIC Code (2008) of the Product/ service

% to total turnover of the company

1. Support service to organizations N 821 100

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES - NIL Company does not have any Subsidiary, Joint Venture or Associate Company.

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

A) Category-wise Share Holding

Category of Share holders

No. of Shares held at the beginning of the year [As on 31-March-2016]

No. of Shares held at the end of the year [As on 31-March-2017] % Change

during the yearDemat Physical Total

% of Total Shares

Demat Physical Total% of Total

Shares

A. Promoters

(1) Indian

a) Individual/HUF - - - - - - - -

b) Central Govt - - - - - - - -

c) State Govt(s) - - - - - - - -

d) Bodies Corp. - - - - - - - -

e) Banks / FI - - - - - - - -

f) Any other - - - - - - - -

Total shareholding of Promoter (A)

- - - - - - -

54

Category of Share holders

No. of Shares held at the beginning of the year [As on 31-March-2016]

No. of Shares held at the end of the year [As on 31-March-2017]

% Change during

the year

Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

B. Public Shareholding

1. Institutions

a) Mutual Funds - - - - - - - -

b) Banks / FI - - - - - - - -

c) Central Govt - - - - - - - -

d) State Govt(s) - - - - - - - -

e) Venture Capital Funds - - - - - - - -

f) Insurance Companies - - - - - - - -

g) FIIs - - - - - - - -

h) Foreign Venture Capital Funds

- - - - - - - -

i) Others (specify) - - - - - - - -

Sub-total (B)(1):- - - - - - - - -

2. Non-Institutions

a) Bodies Corp. - - - - - - - -

i.) Indian - - - - - - - -

ii.) Overseas - - - - - - - -

b) Individuals - - - - - - - -

i.) Individual share holders holding nominal share capital upto Rs. 1 lakh

- - - - - - - -

ii.) Individual shareholders holding nominal share capital in excess of Rs. 1 lakh

- - - - - - - -

c) Others (specify) - - - - - - - -

Non Resident Indians - - - - - - - -

Overseas Corporate Bodies - - - - - - - -

Foreign Nationals - - - - - - - -

Clearing Members - - - - - - - -

Trusts - - - - - - - -

Foreign Bodies - D R - - - - - - - -

Sub-total (B)(2):- - - - - - - - -

Total Public Share holding (B)=(B)(1)+ (B)(2)

- - - - - - - -

C. Shares held by Custodian for GDRs & ADRs

- - - - - - - -

Grand Total (A+B+C) - - - - - - - - -

55

B) Shareholding of Promoter-

Shareholder’s Name

Shareholding at the beginning of the year

Shareholding at the end of the year

% change in shareholding

during the yearNo. of Shares

% of total Shares of the

company

% of Shares Pledged/

encumbered to total shares

No. of Shares

% of total Shares of the

company

% of Shares Pledged/

encumbered to total shares

N.A. - - - - - - -

C) Change in Promoters’ Shareholding (please specify, if there is no change) – No Change

Particulars


Cumulative Shareholding during the year

No. of shares

% of total shares of the company

No. of shares


At the beginning of the year Nil Nil Nil Nil

Date wise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc.):

Nil Nil Nil Nil

At the end of the year Nil Nil Nil Nil

D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs):

Particulars


Cumulative Shareholding during the year

No. of shares


No. of shares


At the beginning of the year - - - -

Date wise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/ transfer/bonus/sweat equity etc.):

- - - -

At the end of the year - - - -

E) Shareholding of Directors and Key Managerial Personnel:

Shareholding of each Directors and each Key Managerial Personnel

Shareholding at the beginningof the year

Cumulative Shareholding during theyear

No. of shares


No. of shares

% of total shares of the

companyAt the beginning of the year - - - -

Date wise Increase/Decrease in Promoters Shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc.):

-

At the end of the year - - - -

56

V. INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but not due for payment.

ParticularsSecured Loans

excluding deposits

Unsecured Loans Deposits Total

Indebtedness

Indebtedness at the beginning of the financial yeari.) Principal Amount - - - -

ii.) Interest due but not paid - - - -

iii.) Interest accrued but not due - - - -

Total (i+ii+iii) - - -

Change in Indebtedness during the financial year - - -

*Addition - - - -

*Reduction - - - -

Net Change - - -

Indebtedness at the end of the financial year - - -

i.) Principal Amount - - - -

ii.) Interest due but not paid - - - -

iii.) Interest accrued but not due - - - -

Total ( i +ii + iii ) - - -

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

SN. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount1 Gross salary - - - -

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

- - - - -

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - - -

(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961

- - - - -

2 Stock Option - - - - -

3 Sweat Equity - - - - -

4Commission - as % of profit - others, specify…

- - - - -

5 Others, please specify - - - -

Total (A) - - - - -Ceiling as per the Act - - - -

57

B. Remuneration to other directors

SN. Particulars of Remuneration Name of Directors Total Amount1. Independent Directors

- Fee for attending board committee meetings - - - - -

- Commission - - - - -

- Others, please specify - - - - -

Total (1) - - - -

2. Other Non-Executive Directors

- Fee for attending board committee meetings - - - - -

- Commission - - - - -

- Others, please specify - - - - -

Total (2) - - - -

Total (B)=(1+2) - - - -

Total Managerial Remuneration - - - -

Overall Ceiling as per the Act

C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTD

SN Particulars of RemunerationKey Managerial Personnel

CEO CS CFO Total

1 Gross salary Dr. Siddhartha Rajagopal, Executive Director

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

5359171 - - 5359171

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - - -

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961

- - - -

2 Stock Option - - - -

3 Sweat Equity - - - -

4 Commission - - - -

- as % of profit - - - -

- others, specify… - - - -

5 Others, please specify:

PF Contribution 406624 - - 406624

Perquisite in Cash or in kind 661389 - - 661389

Total 6427184 - - 6427184

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VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Companies Act Brief Description

Details of Penalty /

Punishment/ Compounding fees imposed

Authority [RD/ NCLT/COURT]

Appeal made, if any (give

Details)

A. COMPANYPenalty - - - - -

Punishment - - - - -

Compounding - - - - -

B. DIRECTORSPenalty - - - - -



C. OTHER OFFICERS IN DEFAULTPenalty - - - - -



For & on behalf of the Board of Directors

Dr. Siddhartha Rajagopal Executive Director

(DIN 06720149)


59

Report on the Financial Statements

1. We have audited the accompanying financial statements of The Cotton Textiles Export Promotion Council (“the Council”), which comprise the Balance Sheet as at March 31, 2017, and the related Statements of Income and Expenditure for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements and for Internal Financial Controls over Financial Reporting

2. The Council’s Committee of Administration is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Council in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Council and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit.

4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts, the disclosures in the financial statements and adequacy of Internal Financial controls system over financial reporting and their operating effectiveness. Our audit of Internal Financial controls over financial reporting included obtaining an understanding of Internal Financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on assessed risk. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Council’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Council’s Committee of Administration, as well as evaluating the overall presentation of the financial statements.

INDEPENDENT AUDITOR’S REPORT to the Members ofThe Cotton Textiles Export Promotion Council

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7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Basis of Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Council as at March 31, 2017, and of its surplus for the year ended on that date.

Basis of Emphasis of Matter

9. Attention is drawn to Note 25 to the financial statements which states that the Council has not made any provision for taxation for the current year and earlier year as in the opinion of the management the activities of the Council are in the nature of charitable purpose in accordance with section 2 (15) and hence the council is entitled to the benefits of section 11 of the Income tax act. However, the Income tax department had denied the benefit of the section 11 of the Income tax Act 1961, for AY 2009-10, 2010-11, 2011-12, 2013-14 and 2014-15 had raised demand of Rs. 63,762,898/-. The matter was decided by Honourable Tribunal in favour of the Council for the AY 2009-10. The department has filed the petition to the Mumbai High Court against the said order. Based on the favourable decision of the Appellate Tribunal and the merits of the eligibility of the Council for 12A exemption and benefits’ of section 11 duly explained and represented by the management, the Council has continued to assess the liability to be contingent in nature.

Our report is not qualified on this matter.

Report on Other Legal and Regulatory Requirements

10. As requirements by the Companies (Auditor’s Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (the “Order”), is not applicable to the Council, no comment on report specified in paragraphs 3 and 4 of the Order has been made.

11. As required by Section 143(3) of the Act, we report that:

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Council so far as it appears from our examination of those books;

c. the Balance Sheet, and the Statement of Income and Expenditure dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended);

e. on the basis of written representations received from the Members of the Committee of Administration as on March 31, 2017 and taken on record by the Committee of Administration, none of the Members of the Committee of Administration is disqualified as on March 31, 2017, from being appointed as a Members of the Committee of Administration in terms of Section 164(2) of the Act.

f. Section 143(3)(i) mandates the auditor to comment on whether the company has an adequate internal financial controls over financial reporting of the company and the operating effectiveness of such controls. In terms of paragraph 5 of Ministry of Corporate Affairs notification number G.S.R. 583 (E) dated June 13, 2017, exemption has been provided to private limited companies fulfilling certain criteria mentioned in the notification, from the applicability of the requirement of reporting in terms of Section 143(3)(i). As the Company meets the relevant criteria specified in the said notification for

61

the financial year ended March 31, 2017, the requirement of Section 143(3)(i) is not applicable to the Company and accordingly no report has been made under the said clause.

g. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014(as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. The Council has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 25 to the financial statements;

ii. The Council did not have any long-term contracts including derivate contracts for which there were any material foreseeable losses;

iii. There were no amounts which required to be transferred to the Investor Education and Protection Fund by the Council during the year ended March 31, 2017.

iv. The Council has provided requisite disclosures in its financial statement as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30 December, 2016 and these are in accordance with the books of accounts maintained by the Council. Refer Note No. 31 to the financial statements.

For B. K. Khare & Co. Chartered Accountants Firm Registration Number 105102W

Ravi Kapoor Partner Membership Number: 040404


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THE COTTON TExTILES ExPORT PROMOTION COUNCILBalance Sheet as at 31st March, 2017

As per our report of even date attached For B K Khare & Co. For on behalf of Board of Directors of Chartered Accountants The Cotton Textiles Export Promotion Council Firm Registration No. 105102W

Ravi Kapoor Dr. Siddhartha Rajagopal Ujwal Lahoti Dr. K V Srinivasan Partner Executive Director Chairman Deputy Chairman

Membership Number: 040404 Date: 9th August, 2017 N. Ravindranathan Preeti M Sheth Committee Place: Mumbai Director Manoj Patodia Members

Note No. As at 31st March 2017

As at 31st March 2016

In Rs. In Rs. I. CORPUS AND LIABILITIES 1 Corpus Funds

(a) Corpus 2 528,07,760 513,01,260(b) Reserves and Surplus 3 4341,10,198 4213,99,919

4869,17,958 4727,01,179 2 Non Current Liabilities

(a) Other Non-Current Liabilities 4 97,83,898 112,80,226 (b) Long Term Provisions 5 53,24,795 43,39,042

151,08,693 156,19,268 3 Current Liabilities

(a) Other Current Liabilities 4 500,31,895 502,64,310(b) Short-Term Provisions 5 72,48,396 65,40,653 572,80,291 568,04,963 TOTAL 5593,06,942 5451,25,410 II. ASSETS 1 Non- Current Assets

(a) Fixed Assets (i) Tangible Assets 6 53,61,656 66,12,479 (ii) Intangible Assets 6 32,107 32,107

(b) Non-Current Investments 7 3446,94,000 2493,22,000(c) Long- Term Loans and Advances 8 732,15,263 667,35,602(d) Other Non-Current Assets 9 - -

4233,03,026 3227,02,189 2 Current Assets

(a) Current Investments 7 400,80,104 863,72,000(b) Trade Receivables 10 2,47,241 24,225(c) Cash and Bank Balances 11 770,12,606 381,98,197(d) Short-Term Loans and Advances 8 41,28,800 53,60,608(e) Other Current Assets 9 145,35,165 924,68,191

1360,03,916 2224,23,222 TOTAL 5593,06,942 5451,25,410

Significant Accounting Policies 1Notes to Accounts 2-32

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THE COTTON TExTILES ExPORT PROMOTION COUNCILStatement of Income & Expenditure for the year ended 31st March 2017

Note No. Income For the year ended 31st March 2017

For the year ended 31st March 2016

In Rs. In Rs.

Income

Revenue from Operations 12 151,62,780 152,70,340

Government Grants 13 279,11,838 579,97,887

Other Income 14 526,18,228 525,02,337

Total Revenue 956,92,846 1257,70,564

Expenditure

Exhibition & Buyer Seller Meet Expenses 15 210,09,020 362,23,049

Printing ,Publicity and Awards Expenses 16 60,27,009 27,44,626

Delegation, Seminar and Market Survey Expenses

17 126,18,340 91,04,289

Employee Benefit Expenses 18 230,67,578 220,87,087

Other Expenses (Administrative Expenses) 19 189,23,683 195,32,004

Depreciation and Amortisation 6 13,36,937 18,34,159

Total expenditure 829,82,567 915,25,213

Surplus for the year before tax 127,10,279 342,45,350

Provision for Tax (Refer Note 29) - -

Surplus for the year 127,10,279 342,45,350




Significant accounting policies 1Notes to Accounts 2- 32

64

THE COTTON TExTILES ExPORT PROMOTION COUNCILNOTES FORMING PART OF FINANCIAL STATEMENTS

NOTE 1- SIGNIFICANT ACCOUNTING POLICIES:

Basis of preparation"These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under section 133 of Companies Act, 2013."Use of EstimatesThe preparation of financial statements requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.Tangible AssetsTangible Assets are stated at cost of acquisition. They are stated at historical cost less accumulated depreciation.Intangible AssetsIntangible assets are stated at cost of acquisition and amortised so as to reflect the pattern in which the asset’s economic benefits are consumed.Investments"Long term investments are stated at cost. Provision is made for any diminution other than temporary in the value of investments.Current investments are stated at cost or fair value, whichever is lower."Depreciation"Depreciation on tangible assets is provided on written down value method over the useful life of asset prescribed in Part C of schedule II of the Companies Act, 2013.Intangible assets relating to Computer Software are amortized over their respective individual estimated useful life of five years commencing from the date the asset is available to the Council for its use and is amortised accordingly. "Employee BenefitsI. Defined Contribution PlanContribution towards provident fund is made to the regulatory authorities. Such benefits are classified as defined contribution schemes as the Council does not carry any further obligations, apart from the contribution made on a monthly basis.II. Defined Benefit PlanThe Council provides for gratuity, a defined Benefit plans (the “Gratuity Plan”) covering eligible employees in accordance with the payment of Gratuity Act, 1972. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the nature of employment. The Council's liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses / gains are recognized in the statement of Income and Expenditure account in the year in which they arise. The Gratuity Fund is maintained with Trust.

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III. Other Long term benefits: The Council provides for the encashment/availment of leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/availment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial valuation.IV. Other Short Term Employee Benefits are charged to revenue in the year in which the related

services are rendered.Translation of Foreign Currency TransactionTransactions in foreign currencies are recognised at the prevailing exchange rates between the reporting currency and a foreign currency on the transaction dates.Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Income and Expenditure Account.Revenue RecognitionRevenue (income) is recognised when no significant uncertainty as to determination or realization exists.Revenue from services is recognised on rendering of services.Interest and other income are recognised on time proportion basis.Entrance feesEntrance fees received from first time registration of membership is credited to Corpus fund.Government Grants Government Grants related to revenue is recognized as and when there is a reasonable certainty of realization and shown in the Income and Expenditure in accordance with Accounting Standard (AS) 12 ‘Accounting for Government Grants’ as notified under Companies (Accounting Standard) Rules, 2006. Grants in the form of assistance from Government are credited to income and expenditure statement on the basis of release orders issued by Ministry of Commerce. Accordingly Grants related to revenue are accounted as a credit in income and expenditure statement separately.LeasesLease arrangement where the risks and rewards incidental to the ownership of an asset substantially vest with the lessor are recognised as operating leases. Lease rent under operating leases are recognised in the Statement of income and expenditure as per terms of agreement.Provisions and Contingent Liabilities"Provisions are recognised when there is a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Council or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made."

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Note : 2 Corpus31st March 2017 31st March 2016

In Rs. In Rs. Entrance Fees

As per the last balance sheet 513,01,260 498,47,885

Addition during the year 15,06,500 14,53,375

Total 528,07,760 513,01,260

Note : 3 Reserves and Surplus 31st March 2017 31st March 2016

In Rs. In Rs. Surplus in Statement of Income and Expenditure

Opening balance 4213,99,919 3871,54,569

Add: Surplus for the year 127,10,279 342,45,350

Total 4341,10,198 4213,99,919

The Council is an association which has been formed as a Limited Company and has been formed for promoting objects of the nature included in section 8 of the Companies Act, 2013 and intends to apply its profit and other income in promoting its objects and to prohibit the payment of any dividend to its members. On winding up of or dissolution of the Council there remains after the satisfaction of all its debts and liabilities, any assets, whatsoever, the same shall not be paid to or distributed among the members of the Council but shall be disposed of in the following manner, viz. (i) At the discretion of the Government, if the assets in question have been acquired wholly or substantially out of Government grants or (ii) If they have not been so acquired, they shall be given or transferred to some other institution having objects of the Company as may be determined by the Hon'ble High Court of Judicature having jurisdiction in the matter. In the event of winding up, the liability of the members is limited to maximum of Rs.500/-.

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Note 4 - Other LiabilitiesNon Current Portion Current Portion

31st March 2017 31st March 2016 31st March 2017 31st March 2016 In Rs. In Rs. In Rs. In Rs.

Earnest Money Deposit/Forfeiture Amount

- - 272,02,385 271,92,385

Statutory Dues - - 1,68,378 17,517Advance from customer - - 40,961 29,354Income received in advance 29,30,138 44,26,466 70,09,236 33,10,316CTI Deposit - - - 2,25,157Deposit for premises given on rent 68,53,760 68,53,760 - -Advance against MAI grants - - 15,40,000 -Liability for Expenses - - 26,58,148 26,72,589MDA Grant to be disbursed to Exporters (Refer Note no. 21)

- - 33,78,175 98,50,364

Government Grant Refundable - - 39,72,931 35,71,804Other Liabilities (Refer Note no.30) - - 40,61,681 33,94,824 Total 97,83,898 112,80,226 500,31,895 502,64,310

Note 5 - Provisions Non Current Portion Current Portion

31st March 2017 31st March 2016 31st March 2017 31st March 2016 In Rs. In Rs. In Rs. In Rs.

Compensated Absence 53,24,795 43,39,042 52,62,443 50,55,748

Gratuity - - 19,85,953 14,84,905

Total 53,24,795 43,39,042 72,48,396 65,40,653

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Note 6 - Fixed Assets

Gross Block

Particulars Balance as at 1st April 2016 Additions On Disposals Balance as at

31st March 2017

A Tangible assets

1 Building 86,38,058 - - 86,38,058

(86,38,058) (86,38,058)

2 Furniture & Fixtures 70,64,780 - - 70,64,780

(70,64,780) (70,64,780)

3 Office Equipments 25,26,720 75,314 - 26,02,034

(24,64,560) (91,160) (29,000) (25,26,720)

4 Motor Cars 20,39,585 - - 20,39,585

(20,39,585) (20,39,585)

5 Computers 23,11,394 10,800 - 23,22,194

(20,83,411) (2,27,983) (23,11,394)

Total (A) 225,80,537 86,114 - 226,66,651Previous year 222,90,394 3,19,143 29,000 225,80,537

B Intangible assets

1 Computer Software 6,42,140 - - 6,42,140

(6,42,140) (6,42,140)

Total (B) 6,42,140 - - 6,42,140Previous year 6,42,140 - - 6,42,140

Total (A + B) 232,22,677 86,114 - 233,08,791Previous year 229,32,534 3,19,143 29,000 232,22,677

THE COTTON TExTILESNOTES FORMING

Note - 1: Building includes Rs. NILL (Previous Year Rs.750/-) being cost of shares received from Co-Operative societies.

Note - 2: During the year, the Council has reviewed its fixed assets for impairement loss as required by Accounting standard 28 - "Impairement of Assets". In the opinion of management no provision for impairement loss is considered necessary.

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ExPORT PROMOTION COUNCILPART OF FINANCIAL STATEMENTS

Accumulated Depreciation/Amortisation Net BlockBalance upto

31st March 2016Depreciation On Disposals Balance upto

31st March 2017Balance as at

31st March 2017Balance as at

31st March 2016

49,53,311 1,80,520 - 51,33,831 35,04,227 36,84,747

(47,63,492) (1,89,820) (49,53,311) (36,84,747) (38,74,566)

58,21,785 5,31,600 - 63,53,385 7,11,394 12,42,995

(52,30,050) (5,91,735) (58,21,785) (12,42,995) (18,34,730)

22,56,870 1,22,947 - 23,79,817 2,22,217 2,69,850

(20,79,382) (2,05,038) (27,550) (22,56,870) (2,69,850) (3,85,178)

8,58,697 4,25,119 - 12,83,816 7,55,769 11,80,888

(3,18,175) (5,40,523) (8,58,697) (11,80,888) (17,21,410)

20,77,394 76,750 - 21,54,144 1,68,050 2,34,000

(19,37,786) (1,39,609) (20,77,394) (2,34,000) (1,45,625)

159,68,057 13,36,937 - 173,04,994 53,61,656 66,12,479143,28,885 16,66,723 27,550 159,68,057 66,12,479 79,61,510

6,10,033 - - 6,10,033 32,107 32,107

(4,42,597) (1,67,436) (6,10,033) (32,107) (1,99,543)

6,10,033 - - 6,10,033 32,107 32,1074,42,597 1,67,436 - 6,10,033 32,107 1,99,543

165,78,090 13,36,937 - 179,15,027 53,93,763 66,44,586147,71,482 18,34,159 27,550 165,78,091 66,44,586 81,61,053

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Note 7 -Investments

Non Current Portion Current Portion

31st March 2017

31st March 2016

31st March 2017

31st March 2016

In Rs. In Rs. In Rs. In Rs.

Non Trade and Unquoted

8% Government of India Taxable Bonds - - - 400,00,000

(Maturity Date -19-July-2016)

8.14% Housing & Urban Development Corp. Ltd.

100,00,000 100,00,000 - -

Tax Free Bonds

(Maturity Date - 25-October-2023)

8.23% Indian Railway Finance Corp. Ltd 100,00,000 100,00,000 - -

Tax Free Bonds

(Maturity Date -18-February-2024)

REC (Rural Electrification Corporation Ltd) 45,80,000 45,80,000 - -

Tax Free Bonds

(Maturity Date - 5-November-2025)

NHAI (National Highway Authority of India) 15,42,000 15,42,000 - -

Tax Free Bonds

(Maturity Date - 9-March-2026)

GOI 8% Taxable Bonds 2003 400,00,000 - - -

(Maturity Date -28-July-2022)

Fixed Deposits

Tamil Nadu Power Finance & Infrastructure 450,00,000 400,00,000 - -

Development Corporation Ltd.

HDFC Ltd. 746,00,000 637,00,000 100,00,000 209,00,000

ICICI Bank Ltd. - - 80,104 -

PNB Housing Finance Ltd. 498,00,000 250,00,000 150,00,000 198,00,000

LIC Housing Finance Ltd. 1091,72,000 945,00,000 150,00,000 56,72,000

Total 3446,94,000 2493,22,000 400,80,104 863,72,000

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Note 8 - Loans and Advances

Non Current Portion Current Portion

31st March 2017

31st March 2016

31st March 2017

31st March 2016

In Rs. In Rs. In Rs. In Rs.

Security Deposits

Unsecured, considered good unless otherwise stated - - - -

Considered good 4,43,923 8,67,305 5,00,000 3,62,692

Considered doubtful - 2,98,115 - -

4,43,923 11,65,420 5,00,000 3,62,692

Less: Provision for doubtful deposits - 2,98,115 - -

Sub-total 4,43,923 8,67,305 5,00,000 3,62,692

Advances recoverable in cash or kind

Unsecured, considered good unless otherwise stated

Considered good - - 2,20,255 15,191

Considered doubtful - 2,65,500 - -

- 2,65,500 2,20,255 15,191

Less: Provision for doubtful advances - 2,65,500 - -

Sub-total - - 2,20,255 15,191

Other loans and advances


Advance Income Tax 727,71,340 658,68,297 - -

Service Tax Receivable - - 16,54,233 11,24,909

Krishi Kalyan Cess Receivable - - 49,827 -

Balance with Post & Telegraph Office - - 12,407 33,397

Prepaid Expenses - - 14,97,569 37,48,819

Loan and advances to employees - - 1,94,509 75,600

Sub-total 727,71,340 658,68,297 34,08,545 49,82,725

Total 732,15,263 667,35,602 41,28,800 53,60,608

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Note 9 - Other AssetsNon Current Portion Current Portion

31st March 2017

31st March 2016

31st March 2017

31st March 2016

In Rs. In Rs. In Rs. In Rs.Deposits with banks with maturity of more than twelve months

- - - 815,01,387

- - - 815,01,387

Interest Accrued on Fixed Deposits with Banks - - - 8,42,976

Interest Accrued on Fixed Deposits with Financial Institutions

- - 56,93,678 30,07,192

Interest Accrued on Government of India Taxable Bonds - - 5,33,333 5,33,333

Interest Accrued on Tax Free Bonds - - 13,02,536 12,33,985

- - 75,29,547 56,17,485

Government Grant ReceivableMarket Access Initiative (MAI) grant for events abroad - - 69,86,260 53,31,039

- - 69,86,260 53,31,039

Other AssetsUnsecured, considered good unless otherwise stated

Considered good - - 19,358 18,280

- - 19,358 18,280

Total - - 145,35,165 924,68,191

Note 10 - Trade Receivables31st March

201731st March

2016In Rs. In Rs.


Outstanding for a period exceeding six months from the date they become due for paymentConsidered good - -

Sub-Total - -Outstanding for a period less than six months from the date they become due for paymentConsidered good 2,40,341 24,225

Sub-Total 2,40,341 24,225Total 2,40,341 24,225

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Note 11 - Cash and Bank Balances

31st March 2017 31st March 2016

In Rs. In Rs.

Cash and Cash Equivalents

Balances with Banks:

In current accounts 769,96,422 281,95,257

In Deposits with original maturity of less than 3 months - 100,00,000

Cash on hand 16,184 2,940

Total 770,12,606 381,98,197

Note: 12 - Revenue from Operations

2016-17 2015-16

In Rs. In Rs.

Operating Income

Membership- Council Member 17,34,000 16,79,000

Membership- Registered Textile Exporter (RTE) 127,25,000 129,22,000

Sub -Total 144,59,000 146,01,000

Other Operating Income

Certificate of origin charges 3,48,780 3,76,700

Export Performance Charges 3,55,000 2,92,640

Sub -Total 7,03,780 6,69,340

Total 151,62,780 152,70,340

74


Note: 13 - Government Grants2016-17 2015-16

In Rs. In Rs.Market Development Assistance (MDA) grant under code activities for Participation in Fairs/Exhibitions, Buyer Seller Meet (BSM), Publicity etc.

58,87,000 100,00,000

Market Access Initiative (MAI) grant from Government of India for Participation in Fairs / Exhibitions and Market Studies etc.

233,86,260 326,84,051

Market Access Initiative (MAI) grant from Government of India for Participation in Fairs / Exhibitions and Market Studies etc. of earlier years

57,60,161 215,35,945

other Market Access Initiative (MAI) grants from Government of India - -towards Legal and Quota Administration Expenditure - -towards Legal and Quota Administration Expenditure of earlier years 10,76,223 -Sub -Total 361,09,644 642,19,996Refund of Market Development Assistance (MDA) grant under code activities of Current year

(21,85,921) (62,22,109)

Refund of Market Development Assistance (MDA) grant under code activities of earlier year

(2,41,885) -

Refund made to Exporters towards MAI grant of current years (57,70,000) -Sub -Total (81,97,806) (62,22,109) Total 279,11,838 579,97,887

Note : 14 - Other Income2016-17 2015-16

In Rs. In Rs.Interest income onFixed Deposits with Banks 59,27,208 73,22,139

Interest Income on Non Current Investments8% Government of India Taxable Bonds 31,20,000 32,00,000

Tax Free Bonds 20,59,102 17,73,011

Interest on Application Money for Tax Free Bond - 29,478

Fixed Deposits with Financial Institutions (Current & Non Current) 258,18,245 250,00,317

Incentive on Investment 5,60,544 6,06,200

Rent Income 139,97,520 138,51,170

Advertisement Income 3,18,575 4,21,618

Foreign Exchange Fluctuation (net) - 2,413

Profit on sale of fixed Assets - 6,250

Other Income 8,17,034 2,89,741

Total 526,18,228 525,02,337

75


Note 15 - Exhibition & Buyer Seller Meet Expenses (net)2016-17 2015-16

In Rs. In Rs.Exhibition Expenses & Buyer Seller Meet 856,02,126 1324,62,587

Less: Contribution from Exporters (645,93,106) (962,39,538)

Total 210,09,020 362,23,049

Note 16 - Printing ,Publicity and Awards Expenses (net)2016-17 2015-16

In Rs. In Rs.Printing of Reports, Publicity, Gift Articles, Awards etc.

110,77,009

65,69,626

Less: Advertisement / Sponsorship recovery from exporters (50,50,000)

(38,25,000)

Total 60,27,009 27,44,626

Note 17 - Delegation, Seminar and Market Survey Expenses (net)2016-17 2015-16

In Rs. In Rs.Delegation, Seminar and Market Survey Exp. 127,28,246 93,41,174

Less: Contribution from exporters (1,09,906) (2,36,885)

Total 126,18,340 91,04,289

Note 18 - Employee Benefit Expense2016-17 2015-16

In Rs. In Rs.Salaries & allowances 151,13,466 125,71,261

Payment to contractual employees 44,16,664 50,30,300

Leave Encashment Benefit 17,65,580 19,28,890

Contribution to provident fund 11,64,767 9,70,626

Contribution to group gratuity scheme 5,01,048 14,84,905

Staff welfare expenses 1,06,053 1,01,105

Total 230,67,578 220,87,087

76


Note 19 - Other Expenses2016-17 2015-16 In Rs. In Rs.

Travelling Expenses 44,53,504 34,68,439Advertisement Expenses 12,20,051 12,59,449Rent 46,15,837 47,33,304Rates & Taxes 7,63,151 6,67,938Legal & Professional Charges 19,65,279 20,06,295Electricity Expenses 11,76,202 13,26,419Printing & Stationery 2,98,526 3,31,958Commission/Brokerage - 1,45,000Auditor's Remuneration (Refer Note below) 2,50,000 2,53,150Internal Audit Fees 90,000 90,000Repairs & Maintenance 11,61,644 21,55,646Telephone Expenses 3,21,575 2,89,921Postage & Courier 2,15,379 1,73,328Website Charges 2,82,565 3,30,304Bad Debts / Sundry debit balances written off - 50,904Meeting Expenses 2,67,181 5,30,891Entertainment Expenses 1,09,513 88,085Motor Car Expenses 4,26,998 4,32,237Exchange rate difference 12,240 -Interest - Others 1,11,796 6,731Other Expenses 11,82,243 11,92,004Total 189,23,683 195,32,004

Note: Auditor's Remuneration break-up:2016-17 2015-16

In Rs. In Rs.As auditor:Audit fee 2,50,000 2,50,000Reimbursement of expenses - 3,150Total 2,50,000 2,53,150

Note 20. Disclosure in accordance with Revised AS – 15 on “Employee Benefits”(A) Defined contribution plans Particulars 31st March 2017 31st March 2016

In Rs. In Rs.Contribution to Provident Fund 11,64,767 9,70,626

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(B) Defined benefit plans – GratuityThe following disclosure is as per valuation report as at the Balance Sheet date, carried by an independent actuary:Particulars 31st March 2017 31st March 2016Actuarial assumptionsDiscount rate 7.20% 7.80%Expected return on plan assets 7.50% 8.00%Salary escalation 8.00% 8.00%Change in defined benefit obligations (DBO) during the yearPresent value of DBO at beginning of the year 99,21,442 81,21,841Current service cost 3,11,477 2,00,559Interest cost 5,84,942 4,54,090Benefits paid - -Actuarial losses/(gains) 3,19,871 11,44,952Present value of DBO at the end of the year 111,37,732 99,21,442Change in fair value of plan assets during the yearFair value of Plan assets at beginning of the year 84,36,537 75,17,836Expected return on plan assets 4,84,230 4,14,904Current service cost - -Contribution - 6,04,005Interest cost - -Benefits paid - -Actuarial losses/(gains) 2,31,012 (1,00,208)Fair value of plan assets at the end of the year 91,51,779 84,36,537Reconciliation of present value of the obligation and the fair value of plan assetsPresent value of defined benefit obligations at the end of the year 111,37,732 99,21,442Fair value of Plan Assets at the end of the year 91,51,779 84,36,537Funded status [Surplus / (Deficit)] (19,85,953) (14,84,905)Unrecognised past service costs - -Net asset / (liability) recognised in the Balance Sheet (19,85,953) (14,84,905)Expenses recognised in the Statement of Income and ExpenditureCurrent service cost 3,11,477 2,00,559Interest cost 5,84,942 4,54,090Expected return on plan assets (4,84,230) (4,14,904)Net actuarial Loss recognized in the Statement of Income & Expenditure 88,859 12,45,160Total expenses recognised in Statement of Income and Expenditure 5,01,048 14,84,905

The contributions expected to be paid to the plan during the annual period

10,00,000 7,00,000

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Gratuity 2016-17 2015-16 2014-15 2013-14 2012-13Present value of DBO 111,37,732 99,21,442 81,21,841 83,33,755 71,76,720

Fair value of plan assets 91,51,779 84,36,537 75,17,836 75,99,869 61,47,845

Funded status [Surplus/(Deficit)] (19,85,953) (14,84,905) (6,04,005) (7,33,886) (10,28,875)

Experience gain/(loss) adjustments on plan liabilities

49,108 6,75,011 1,12,649 10,28,261 8,35,862

Experience gain/(loss) adjustments on plan assets

2,31,012 1,00,208 1,52,172 1,47,505 1,54,405

(C) Defined Benefit Plans – Leave Entitlement (unfunded)The following disclosure is as per valuation report as at the Balance Sheet date, carried by an independent actuary:

Rupees

Particulars 2016-2017 2015-2016Actuarial assumptionsDiscount rate 7.20% 7.80%

Expected return on plan assets 7.50% 8.00%

Salary escalation 8.00% 8.00%

Change in defined benefit obligations (DBO) during the year

Present value of DBO at beginning of the year 93,94,790 74,65,900

Present value of DBO at the end of the year 111,37,732 93,94,790

Note 21 - MDA GRANTS FOR DISBURSEMENT TO ExPORTERSParticulars 31st March 2017 31st March 2016

In Rs In Rs In Rs In Rs

As per last Balance Sheet 98,50,364 - 34,87,293 -Add: Receipts during the year 89,76,000 - 126,50,305 -Less: Disbursed during the year (136,61,179) - (62,87,234) -Less: Refunded/refundable/adjusted during the year (17,87,010) - - -

MDA Grant to be disbursed to Exporters - 33,78,175 - 98,50,364

Note 22 - Related Party DisclosureIn compliance with Accounting Standard 18 - “Related Party Disclosures” and relevant provisions of Companies act 2013, the required disclosures are given in the table below:

Names of the related party and relationship:Related Party Nature of relationship

Siddhartha Rajagopal - Executive Director Key Management Personnel

79


Details of transactions with related parties are as follows:

Name of the related party Nature of transaction 31st March 2017 31st March 2016In Rs. In Rs.

Siddhartha Rajagopal Executive Director

Salary and Allowances 53,59,171 44,01,592

Contribution to Provident Fund 4,06,624 3,78,012

Perquisite in Cash or in kind 6,61,389 7,47,668

Total 64,27,184 55,27,272

Note: The remuneration to the key managerial personnel does not include the provisions made for Gratuity and Compensated Absence, as they are determined on an actuarial basis for the Council as a whole.

Note 23 The Council is classified as a ‘Small and Medium-Sized Council’ (SMC) as defined in Clause 2 (f) of the Companies (Accounting Standards) Rules, 2006 and accordingly the Council has complied with the Accounting Standards as applicable to SMC.

Note 24 There are no Micro, Small & Medium Enterprises, to whom the Council owes dues on account of principal amount together with interest as at the Balance sheet date. This has been determined to the extent such parties have been identified on the basis of information available with the Council.

Note 25 Contingent Liabilities and commitments (to the extent not provided for) The Income Tax Department had denied the benefit under section 11 to the Council for Assessment

Year 2009-10. However, during the year the Hon’ble Tribunal while reversing the order of the Commissioner of Income Tax for the aforesaid year had held that provisions of section 11 are applicable to the Council. Similarly, the tax department’s action of withdrawal of the council’s registration under section 12AA w.e.f. Assessment Year 2009-10 had also been set aside by the Hon’ble Tribunal. However the Income Tax department has filed petition in the Mumbai High Court against the said tribunal order after the end of the financial year. The Income Tax Department had also denied the benefit of section 11 to the Council for the assessment years 2010-11, 2011-12, 2013-14 and 2014-15. The Council has already filed an appeal against the said order with Commissioner of Income Tax (Appeals). In the opinion of the management of the Council the activities of the Council are in the nature of charitable purpose in accordance with section 2(15) and accordingly the provisions of section 11 would apply to the Council. In view of the above, no provision for taxation has been made by the Council for the financial year 2015-16 or for earlier years amounting to Rs. 6,37,62,898/-, (Previous year Rs.52,327,592/-). The management of the council, having regard to favourable decision of the Hon'ble Tribunal, merits of the case is hopeful of favourable outcome of the matter and has assessed the liability to be contingent in nature.

Note 26 'Earnest Money Deposit Received', are subject to confirmation from the respective parties and consequential reconciliation / adjustment arising there from, if any. The management, however, does not expect any material variation.

Note 27 Expenditure in foreign currency on account of Statistical Data, Delegation and Exhibition Expenses is Rs.8,58,22,132/-(Previous Year Rs. 12,94,95,803/-).

Note 28 In the year 2010, the Co-Operative Society in which the Council has a residential property as a member entered in to a Re-development agreement with a builder. As per the agreement the Council has received Rs. 32,16,136/- (Previous Year Rs. 32,16,136/-) towards compensation. The said amount is disclosed as a liability pending resolution of certain disputes of the Society with the builder, and is not adjusted to the cost of the asset.

80

Note 29 The Council has entered into operating lease agreement as a lessee for premises. The lease rentals recognized as an expense in the Statement of Income and Expenditure Statement during the year and the future minimum lease payments under non-cancellable operating lease for period ranging from 11 months to 36 months are as follows:

Particulars 31st March 2017 31st March 2016In Rs. In Rs.

Lease Rentals (Included in Other Expenses Note -19) 46,15,837 47,33,304

Obligation of Non - Cancellable Lease

Not Later than One Year 60,13,589 10,30,248

Later than one year but not later than five years 167,77,895 5,76,708

Note 30 The Council has entered into operating lease agreements as a lessor for various premises. The lease rentals recognized as income in the Statement of Income and Expenditure Account during the year and the future minimum lease payments under non-cancellable operating lease for period ranging from 11 months to 60 months are as follows:

Particulars 31st March 2017 31st March 2016In Rs. In Rs.

Lease Income (Included in Other Income Note - 14) 139,97,520 138,51,170

Receivable on Non - Cancellable Lease

Not Later than One Year 129,76,060 139,97,520

Later than one year but not later than five years 2,90,000 109,67,775

Note 31 During the year, the company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below:

Particulars SBN’s Other denomination notes TotalClosing cash on hand as on 08.11.2016 23,000 12,572 35,572

Add: Permitted Receipts - 3,08,000 3,08,000

Less: Permitted Payments - 2,16,193 2,16,193

Less: Amount deposited in banks 23,000 - 23,000

Closing cash on hand as on 30.12.2016 - 1,04,379 1,04,379

Note 32 Previous year’s figures have been re-arranged, reclassified and regrouped wherever considered necessary.




81

Please complete the Attendance Slip & hand it over at the entrance of the meeting hall 63rd Annual General Meeting on Tuesday 26 September, 2017

NAME OF THE MEMBER: _____________________________________________________________________________________

MEMBERSHIP NO. (to be filled by Member/Proxy) _____________________________________________________________I certify that I am a Member/Proxy for the Member of the Council. I hereby accord my presence, at the 63rd Annual General Meeting of the Council held at 12.00 Noon, on Tuesday, 26th September, 2017 at ‘Crystal (South)’, Hotel Taj Mahal Palace, Apollo Bunder, Colaba, Mumbai-400001

Signature (of Member/Proxy)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PROxY

THE COTTON TExTILES ExPORT PROMOTION COUNCIL CIN: U91110 MH 1954 NPL009385

(Regd. Office:-Engineering Centre, 5th Floor, 9 Mathew Road, Mumbai-400004) 63rd Annual General Meeting on Tuesday 26 September, 2017

Name of the Member (s) (Firm/Company): ______________________________________________________________________

Membership No & Region:- ____________________________________________________________________________________

Registered Address:____________________________________________________________________________________________

E-mail Id: _____________________________________________________________________________________________________

I / we, being the member (s) of The Cotton Textiles Export Promotion Council, hereby appoint

1. Name of the Person:________________________________________________ Membership No. ________________________ of

M/s.__________________________________________________________________________________________________________

Address:______________________________________________________________________________________________________

E-mail Id: _____________________________________________Signature: _________________________________or failing him

2. Name of the Person: ________________________________________________Membership No._______________________of

M/s.__________________________________________________________________________________________________________

Address: _____________________________________________________________________________________________________

E-mail Id: _____________________________________________Signature: _________________________________or failing him

3. Name of the Person: ________________________________________________Membership No._______________________of

M/s.__________________________________________________________________________________________________________

Address:______________________________________________________________________________________________________

E-mail Id: _____________________________________________Signature:_________________________________________________ as my/our proxy to attend and vote (on a poll) for me/us and on resolutions (other than Election of Executive Committee Members of the Council) at the 63rd Annual General Meeting of the Council to be held on 26th September, 2017, Tuesday at 12.00 Noon at‘ Crystal (South)’, Hotel Taj Mahal Palace, Apollo Bunder, Colaba, Mumbai-400001 and at any adjournment thereof.

As witness my/our hand(s) this _______ day of _______________ 2017.

Signature of the said Member(s) _______________________Signature of Proxy Holder 1. _____________________________

Signature of Proxy Holder 2. ___________________________ Signature of Proxy Holder 3. ____________________________

Note: 1 This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Council, not less than 48 hours before the commencement of the Meeting.

2. The Proxy need not be a member of the Council.

THE COTTON TExTILES ExPORT PROMOTION COUNCILCIN: U91110 MH 1954 NPL009385

(Regd. Office:-Engineering Centre, 5th Floor, 9 Mathew Road, Mumbai-400004)

ATTENDANCE SLIP

82

NOTES

83

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ExP

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EWAR

DIN

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XCEL

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IN E

XPO

RTS

EXPO

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AWAR

DS

2015

-201

6

84

THE COTTON TExTILES ExPORT PROMOTION COUNCIL

PERIOD ----------------------------------------------------------------------NAME OF PAST CHAIRMAN

1954 – 1966 ---------------------------------------------------------------------(Late) Shri Neville N. Wadia

1966 – 1974 ---------------------------------------------------------------------(Late) Shri K. M. D.Thackersey

1974 – 1977 ---------------------------------------------------------------------Shri Nusli N. Wadia

1977 – 1979 ---------------------------------------------------------------------(Late) Shri Babubhai C. Shroff

1979 – 1981 ---------------------------------------------------------------------Shri Sudhir K. Thackersey

1981 – 1983 ---------------------------------------------------------------------(Late) Shri R. S. Mehra

1983 – 1984 ---------------------------------------------------------------------(Late) Shri Ajay Chimanbhai

1984 – 1986 ---------------------------------------------------------------------Shri M. M. Sheth

1986 – 1988 ---------------------------------------------------------------------Shri J. P. Goenka

1988 – 1990 ---------------------------------------------------------------------Shri P. D. Patodia

1990 – 1992 ---------------------------------------------------------------------(Late) Dr. Mohanlal Piramal

1992 – 1994 ---------------------------------------------------------------------(Late) Shri R. S. Mehra

1994 – 1996 ---------------------------------------------------------------------Shri Sudhir K. Thackersey

1996 – 1998 ---------------------------------------------------------------------(Late) Shri G. Devarajan

1998 – 2000 ---------------------------------------------------------------------(Late) Shri D. S. Alva

2000 – 2002 ---------------------------------------------------------------------Shri T. Kannan

2002 – 2004 ---------------------------------------------------------------------Shri Lalit P. Desai

2004 – 2006 ---------------------------------------------------------------------Shri B. K. Patodia

2006 – 2008 ---------------------------------------------------------------------Shri Prem Malik

2008 – 2010 ---------------------------------------------------------------------Shri V. S. Velayutham

2010 – 2012 ---------------------------------------------------------------------Shri Amit Ruparelia

2012 – 2014 ---------------------------------------------------------------------Shri Manikam Ramaswami

2014 – 2016 ---------------------------------------------------------------------Shri R. K. Dalmia

PAST CHAIRMEN

THE COTTON TEXTILES EXPORT PROMOTION COUNCILHEAD OFFICE

Engineering Centre, 5th Floor, 9, Mathew Road, Mumbai-400 004

Dr. Siddhartha Rajagopal : Executive Director Shri N Ravindranathan : Director Shri Rajesh S Satam : Joint Director Shri Shailesh Martis : Joint Director Shri A Ravindra Kumar : Joint Director Shri Sanjay Rane : Joint Director Shri Rakesh Chinthal : IT Officer Mrs. Smita Dalvi : Section Officer

REGIONAL OFFICE New Delhi

Shri K. Raju : Regional Officer

OTHER STAFF : 13

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