Philips Electronics India Ltd

PHILIPS ELECTRONICS INDIA LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT Your Directors submit their report and audited accounts for fifteen months period ended March 31, 2012. Your Company's Accounting year was changed from Calendar Year (January- December) to Financial Year (April-March), to avoid duplication in preparation and audit of accounts under the Companies and Income Tax Acts. This change simplifies the process, thereby saving cost and time. Consequently, the current Annual Accounts and Report of the Company are for a period of fifteen months, from January 1, 2011 to March 31,2012; these figures, therefore, are not comparable with those of previous year ended December 31, 2010. I. FINANCIAL PERFORMANCE I.I RESULTS Rs. Mln Jan'11-Mar'12 Jan'10-Dec'10 (15 months) (12 months) Gross income 56,340 37,638 Operating profit 1,813 1,451 Exceptional Items 41 74 Profit before tax and after exceptional items 1,854 1,525 Prior period expense - (92) Profit before tax 1,854 1,433 Provision for current tax (731) (498) Income tax receivable (net of tax provisions) related to prior years (written off)/written back 115 (57) Provision for deferred tax - Release/(Charge) 100 11 Profit after tax 1,338 889 Transfer to General Reserve 134 89 For the fifteen months period ended March 31, 2012, the Company registered an overall turnover growth of 50%; Operating Profit before Tax registered a growth of 29% and Profit after tax 51 %. Basic Earnings per Share for the period 2011-12 was Rs 23.26. 1.2 SECTOR-WISE SALES Rs. Mln. Jan'11-Mar'12 Jan'10-Dec'10 (15 months) (12 months) Lighting 32,090 21,581 Consumer Lifestyle 8,689 6,591 Healthcare 10,249 6,195 Innovation Campus 4,563 2,731 Others 202 151 Total 55,793 37,249 Key figures for 12 months ended April - March As indicated earlier, the full year audited results for 15 month period ended March 31, 2012 are not comparable with those for year ended December 31, 2010. However on a memorandum basis, for comparative purposes, unaudited results for 12 months ended March 31, 2012 are given below: * Gross Income at Rs, 47,277 million (2010-11: 38,364 million) grew by 23.2% * Profit from operations before interest and exceptional items at Rs 1,016 million (2010-11: Rs 1,167 million) dropped by 12.9% * Profit before Tax Rs 1,175 million (2010-11: Rs 1,360 million) dropped by 13.6% * Net profit at Rs 910 million (2010-11: Rs 879 million) grew by 3.5% 1.3 FINANCE & ACCOUNTS Your Company has delivered positive net cash from operations through improved sales performance and working capital management. During the year the Company invested Rs 1000 million for buying 14,294,860 equity shares of Preethi Kitchen Appliances Private Limited to part finance the acquisition of 'PREETHI' business from Maya Appliance Private Limited and its group Companies.This investment was from internal accurals. On March 30,2012, as a part of global divestment of Television business, the Company transferred the Television (Research and Development) business which was' a small portion of Software activities at Bangalore to TP Vision India Private Limited at a consideration of Rs 37.4 million. In continuation to the initiative taken on providing innovative financial solutions to our Healthcare customers and the business for keeping up pace with the market growth, your company has facilitated sales through financial solutions to the tune of Rs. 1,989 million using its internal accruals. During the current financial year the Company has transferred, unpaid dividend of Rs 0.95 million to Investor Education and Protection Fund. Capital Expenditure during the fifteen month period was at Rs. 1,471 million (2010: Rs. 856 million) and were in the areas of setting up of Greenfield factory, Research and Development Centre for Healthcare, capacity expansion at Mohali and Vadodara Light factory, Information Technology and other cost savings. 2. DIVIDEND Your Directors recommend payment of Rs 2.50 per share as dividend on the fully paid equity shares for the financial year ended March 31, 2012. This will absorb Rs. 144 million as dividend and Rs 23 million as dividend tax. 3. BUSINESS PERFORMANCE The Notes to the Profit and Loss Account for the year provide segment results.The required disclosure is made below for the Lighting, Consumer Lifestyle, Innovation Campus (Software) and Healthcare Sectors. LIGHTING The Sector grew by 14% in the first 12 months ending December 31, 2011 and 16% in the first quarter of 2012 over corresponding period of previous year making it the eighth consecutive year of double digit growth. The growth was driven by continued channel expansion and increased extraction from the existing channels in the consumer segment, increased LED penetration and some big wins in the professional segment. The year 201 1-12 witnessed strong performance in conventional lamps, tube lights and compact fluorescent lamps categories with an average annualised growth of 13%. Driving efficiencies in distribution, increased reach in semi urban markets, planned channel expansion, and focussed marketing were the key contributor for the growth in this segment. Localisation of Electronic Ballasts and the launch of a better value proposition product 'Sumo Ultra' led to an annualised growth of 21.6% in Lighting Electronics. The year witnessed phenomenal growth in LED, Main Stream Battens, Lighting Controls and some big wins in Office and Industry Segments. Continued focus in expanding locally relevant LED portfolio resulted in the successful launch of 24 types of LED/Solar product families during the current period. Your Company's LED share in Professional Luminaires business now stand of 14% as of first quarter of 2012. During the year under review, the Sector started the business of Lighting Controls, leveraging integration opportunities from the Philips global acquisition of Dynalite Lighting Controls. Great progress has been made in this business with total Sales of Rs. 164 Million in the current period. Consumer Luminaires business continued the growth momentum during 201 1-12. Addition of twenty eight new brand retail stores across India and improving the efficiency of existing stores are the key success factor for the growth of this category. Besides, focused marketing activities and continued investments in advertising and promotions to build category awareness and association have aided this growth. Philips Lighting India received the prestigious 'Leadership Role Model' award for market leadership, showing entrepreneurial spirit and being a role model, at the inaugural Philips Accelerate! CEO Awards presented at the Global Leadership Summit in May 2011. Automotive Lighting business in India received a Special Award from Maruti Suzuki India for the quality of services and support provided to them as one of their vendors. In 2012-13 the Sector will focus on the B2B sector through segment based marketing and LED and other energy efficient solution to increase its market presence. The Sector will also focus on Consumer segment by continuing to drive energy efficient home lighting and consumer Luminaires. CONSUMER LIFESTYLE In 2011 the sector continued to focus on strengthening market share in key categories such as Home Cinema Systems, Kitchen Appliances, Garment Care and Hair care & Grooming segments. These categories combined enjoyed a growth of 15% in 2011. In Lifestyle Entertainment (LE), we continued our leadership position in DVD since last year and a half, and in Home Cinema Systems, Philips strengthened its share, becoming a strong #2 player in the market, by focusing on the 3D angled speakers portfolio. In mainstream audio segment, we maintained our market share in line with market development. During the last 12 months your Company received the 'Best Audio System of the Year' award from NDTVTech Life. In Domestic Appliances, we strengthened our market share and insights in Kitchen Appliances by launching products relevant for local tastes and behaviour patterns. In Garment Care, we strengthened our leadership position by increasing our share by driving conversion of dry to steam irons and a strong marketing campaign which accelerated category growth. We continued to build the category of Personal Care in India through integrated media campaign for Hair Care and Gooming. Our goal remains to grow faster than the market in the coming years by strengthening market shares in the key categories: DVD, Home Cinema Sound, Kitchen Appliances, Garment Care, Hair Care & Grooming. Your company remains committed to launch new and relevant products in the coming years which not only suits the local consumer tastes but also meets the fast changing lifestyle needs of the Indian consumers. One such launch is the launch of Philips Airfryer in May 2012. The AirFryer is equipped with Philips' patented Rapid Air Technology that uses fast-circulating hot air to create fried food containing up to 80 per cent less fat and is a healthy alternative to traditional frying. The Airfryer significantly reduces the need of oil for cooking a vast array of Indian dishes and make it possible to cook using just hot air Additionally Consumer Lifestyle continued to focus on building talent, competencies and processes to drive sustainable profitable growth through relevant and profitable portfolio choices. HEALTH CARE The Healthcare business in India grew by 31% in the period ended March 31, 2012. This growth was primarily driven by a growth of 45% in diagnostic imaging systems. Ultrasound business grew by 12% and patient monitoring grew by 17% during the period. Service revenues registered a growth of 25% during the period. In 2011 we established a world class 'Customer Care Service Centre' in Chennai moving from corrective to predictive maintenance by virtue of which we are experts in remote resolutions and have significantly reduced downtime. Philips Healthcare India has increased its market share further during the period across all product categories. We are the market leaders in Patient monitoring, Cardiovascular, Defibrillators and High end MR and CT (Surce: COCIR). New products were introduced in Patient monitoring, Anaesthesia machines, Ultrasound machines (Qearvue series- Innovative technology at low operating costs with low energy needs), MRI (HiFU-breakthrough technology to treat uterine fibroids and other tumours non-invasively, Ingenia - first fully digital broadband MRI system), CT (Ingenuity- Low dose, high throughput CT system) and nuclear medicine (Ingenuity TOF- Breakthrough technology to view the smallest of lesions in oncology, PET MR- Hybrid system that offers best in class technology in PET combined with the best tissue imaging in MR). As a part of our strategic initiatives, we launched healthcare informatics which will help in enhancing the clinical capabilities of our clinicians by providing relevant information anytime, anywhere. Philips Healthcare received the Frost and Sullivan award for the Best Cardiology Treatment Company of the year 2011. As per the results of the Philips 2012 Heartbeat Survey, there has been a significant change in the brand perception of Philips Healthcare in India. Philips is today perceived as the Most Exciting Brand in Healthcare in India. We have moved up from #3 until last year to become CO-LEADER with key competitors in Brand Preference in India. We have moved up to become # I in Top of Mind and Unaided Awareness in India. We are partnering with RAD-AID and Post Graduate institute of medical research on a Women's Healthcare Outreach Program for breast cancer screening. Business financing continues to contribute significantly to the business growth . Your Company has begun production at a newly constructed healthcare facility at Chakan near Pune.This facility is the first in the country to expand by offering low cost interventional imaging systems. It will produce imaging systems for cardiology and radiology application mainly to serve smaller hospitals in the country. A research and development centre has also been set up at Pune. INNOVATION CAMPUS (PIC) Philips Innovation Campus (PIC) based at Bangalore initially started as a software center and has now developed into a product development center with focus on delivering meaningful innovations for local and global markets. The recently launched 'Qearvue', a range of ultrasound products bears testimony to this. In 2011 PIC expanded its area of expertise further in Lighting R&D. A Center of 'Competence for Mobility' was established in PIC, recently, to extend the capabilities in Healthcare, Lighting and Consumer Lifestyle to mobile platforms. It has already unveiled three mobile applications developed in the Healthcare, Lighting and Lifestyle sectors. 'Sanjivini', a healthcare mobile application platform, helps simplify the collection of patient information by the healthcare workers in rural areas, providing a crucial link to the improved delivery of healthcare. 'Envision', a lighting application that helps users to control lighting in their homes/offices remotely. 'Air Studio' an iPhone/iPad application streams music/photos/videos wirelessly from iPhone, iPad, PC/MAC to Philips network connected players. Sales (Export in Foreign Currency) amounted to Rs.4.6 billion in 2011-12 (for 15 months) - (Rs.2.7 billion in 2010). PIC's average employee strength during 2011-12 was 1466 Full Time Equivalents (I 198 in 2010). During the year, personnel in the Healthcare, IT Applications and Lighting increased. In 2012, PIC will see a growth in activities in all the sectors, with healthcare in the lead. 'In India for India' initiatives will be ramped up.Together with other development centers in India and China, PIC will play a critical role in expanding the footprint of Philips in emerging markets. 4. AUDIT COMMITTEE The Audit Committee was constituted on October 30, 1999. The terms of reference of the Audit Committee among others are to review with the Management and/or Internal Audit Department and/or Statutory Auditors: i. The statutory annual and quarterly financial reporting by the Company. ii. Changes in the statutory accounting policies of the Company. iii. The audit programs of the external auditors and any material issues arising from the audits. iv. The adequacy and effectiveness of accounting and financial controls of the Company compliance with the Company's policies and applicable laws and regulations. v. Recommend to the Board the appointment of external auditors and the remuneration payable to them. vi. Changes, if any, in accounting policies and practices and reasons for the same. vii. Disclosure of any related party transactions During the year the Audit Committee comprised of three directors, two of them are independent directors. The Chairman of the Committee is an independent Director The Committee met two times during the year 2011, on February 23, 2011 and on November 18, 2011. The Chairman of Audit Committee attended the Annual General Meeting held on June 10, 2011 to answer the Shareholders queries. 5. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Your Company remains committed to maintaining internal controls designed to safeguard the efficiency of operations and security of our assets. Accounting records are adequate for preparation of financial statements and other financial information. Through our internal audit processes at the sectoral and corporate levels, both the adequacy and effectiveness of internal controls across various businesses and compliance with laid-down systems and policies are regularly monitored. A trained internal audit team also periodically validates the major IT-enabled business applications for their integration, control and quality of functionality. The Audit Committee of the Board met periodically during the year to review internal control systems as well as financial disclosures. 6. CORPORATE SOCIAL RESPONSIBILITY Your Company is committed to sustainability and strives to help disadvantaged communities lead better lives by making them self-sustaining through our healthcare and well-being initiatives. During 2011 the Company's Mohali Light Factory (MLF) has made significant contribution in education, social and environment area. Two of the Govt. Primary Schools at Mohali were covered under Corporate Social Responsibility. Project SimplyHealthy@Schools, launched in 2009 as a part of global initiative focuses spreading awareness on 'Health and Wellbeing' through an interactive games for children in primary school at Mohali. MLF initiated various activities like Lohri celebration, painting competition, Children day celebration, building maintenance and medical camp at Government Primary School located at nearby village Kambala.The team from MLF had run stitching centre in the village to support the young girls of the village who were sitting idle at home. Tree plantation, spreading awareness on energy saving and celebration of World environment day are the regular practices at MLF to contribute towards better and healthy environment. The Company's Vadodara Light Factory (VLF) continued its association with an effective social partners/NGO ie TRU-'Trust for reaching unreached' in a project called AROGYA KIRAN for improving the rural health care of the residents in the nearby villages. Philips Innovation Campus at Bangalore reaches out to sections of society through its various community based initiatives. During the year 2011, a dedicated team of over 100 volunteers, who form part of the community involvement have touched the lives of over 2500 beneficiaries, through various activities in the field of education and healthcare. The team also ran a 'Simply Heallthy@Schools' program which covered about 12 schools. Our volunteers taught kids about basic health and hygiene, as part of this program. 7. HUMAN RESOURCES AND INDUSTRIAL RELATIONS As part of our people development efforts, the learning and development needs of employees were identified and addressed on an on-going basis. In addition to on-going development programmes, the focus was on identifying and developing talent through a structured talent development process, including development centres and leadership development programmes such as ALTIUS aimed at middle and top management employees, An employee connect program was launched pan India to create awareness about various services provided by the HR department. Our presence at the premier management campuses has been further strengthened. During the year we further strengthened the initiatives under Project CARE (Capability Building Recognition and Engagement). The initiative aims to build the capabilities and engagement of frontline sales and service employees and is recognized as a best practice. The programme includes specific Sales Capability Building projects and recognition by way of Awards and Communication programmes. Two key programs launched included Performance Plus Awards for Service Teams and Wellness workshops for employees. Rewards initiatives were further strengthened during the course of the year. Industrial Relations were cordial. Information under Section 217 (2A) of the Companies Act 1956, read with the Companies (Particulars of Employees) Rules, 1975, forms part of this report. 8. CONSERVATION OF ENERGY, FOREIGN EXCHANGE OUTGO AND TECHNOLOGY ABSORPTION Information on conservation of energy, technology absorption, foreign exchange earnings and outgo, is required to be given pursuant to Section 217(1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of the Board of Director) Rules, 1988 is provided in the Annexure to this report. 9. ENVIRONMENT, ENERGY, OCCUPATIONAL HEALTH & SAFETY Your Company is committed to implementing the Philips Sustainability Policy and is striving to continuously improve its contribution to the environmental, economic and social aspects of sustainability. The Company's Vadodara Light Factory (VLF) is highly focused on the environment and safety issues and its efforts and activities towards environment and safety has been very well appreciated during various audits done in the year. National Safety and World Environment day are celebrated in the plant for wide spread awareness and culture within the factory. Regular training and seminars are conducted on the subject of Behavior Based Safety and Machine safety to motivate and enhance the knowledge amongst its employees to achieve their aim of zero accidents. VLF is also actively involved in implementing the Philips Eco-Vision IV (2009-2012) program. During 2011, VLF unit consumed 795,707 GJ of energy and 214,959 KL of water, generated 6540 tons of waste and emitted I 10 tons of various chemical substances. 100 per cent of the generated waste was recycled. The Company's Mohali Light Factory (MLF) had switched over from liquid mercury to solid mercury in CFL manufacturing which resulted in drastic reduction of mercury consumption and its emission. MLF is actively involved in implementing Eco vision Program V (2010 to 2013) and improving its environmental performance year on year. In December 2011 MLF was awarded the India Manufacturing Excellence Award called 'IMEA Gold Award 2011 - Large Business' 10. DIRECTORS' RESPONSIBILITY STATEMENT As required under Section 217 (2AA) of the Companies Act, 1956, your Directors confirm that: i) In the preparation of the annual accounts, applicable accounting standards have been followed along with proper explanations relating to material departures; ii) The Directors 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 as on March 31, 2012 and of the profit of the Company for the period ended March 31, 2012: iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act, to safeguard the assets of the Company and to prevent and detect fraud and other irregularities; iv) The Directors have prepared the annual accounts on a going concern basis. The Company's Internal Auditors have conducted periodic audits to provide reasonable assurance that established policies and procedures were followed. The Audit Committee constituted by the Board meets regularly with internal and external auditors to review internal control and financial reporting. 11. DIRECTORS During the year there has been no change in the directorship of the Company. Mr. S.Venkataramani retires by rotation at the ensuing Annual General Meeting and is eligible, offer himself for re-appointment. Your Directors recommend his re-appointment. 12. AUDITORS Messrs. B S R & Co. the Statutory Auditors of the Company will retire at the ensuing Annual General Meeting and are eligible for re-appointment as auditors of the Company and offer themselves for re-appointment. Your Directors recommend their re-appointment for the ensuing year The Auditor forwarded their certificate stating that their re-appointment, if made will be within the limit specified in that behalf in Sub-section(I B) of Section 224 of the Companies Act, 1956. 13. COST AUDITORS The Central Government has directed your Company to carry out an audit of the Company's cost accounts in respect of electric lamps and fluorescent tubes, pursuantto the provisions of Section 233B of the Companies Act, 1956. Accordingly your Directors have approved the appointment of Messrs. Nanabhoy & Company, a firm of Cost Accountants, to conduct the audit for the period ending March 31, 2012. 14. GENERAL Your Directors wish to place on record their deep appreciation to employees at all levels for their hard work, dedication and commitment. Directors also like to acknowledge the excellent contribution by Koninklijke Philips Electronics N.V to your Company in providing management and technical support across all sectors. The Board place on record their appreciation for the support and co-operation your Company has been receiving from its suppliers, redistribution stockists, retailers, business partners, and others associated with the Company as its trading partners. Directors also take this opportunity to thank all members/investors, clients, vendors, banks, regulatory and government authorities, for their continued support, On behalf of the Board S.M. Datta Chairman Gurgaon, Haryana July 14, 2012 ANNEXURE TO DIRECTORS' REPORT INFORMATION REQUIRED UNDER SECTION 217(I)(E) OF THE COMPANIES ACT, 1956 A) ENERGY CONSERVATION MEASURES a) The following energy conservation measures were implemented during January 2011 - March 2012 1. Provide solution using LEDs that consumes 30-40% less energy w.rt the conventional luminaires. Use of controls in luminaire to reduce energy consumption. 2. Lighting in auto mode (HSD, RO, Substation, 66KV control room, new substation, Life test area) 3. 4 Nos of 90KW compressor to be replaced by 2 Nos of 160KW compressor 4. Installation of high pressure air compressor to reduce booster losses. 5. Danner-1 crusher motor (8 KW) to be on/off with cyclic timer (I min On / 4 min off) 6. Sand screening motor changed from 7.5 KW to 1.5 KW. 7. Canteen kitchen exhaust blower to be kept on with timer. & Location based AC's switched off after office hours. 9. Optimization of pumping oven in 18w (VTL-7) 10. Optimization of Batch house mixer hydraulic pump switching frequency. II. Ribbon dust collector one motor run at a time, out of 2, with interlock to machine (@ I 1.2 KW) 12. Danner-2 crusher motor (.37 KW)to be on/off with cyclic timer (10 sec on/50 sec off) 13. Ribbon crusher & conveyors (2 Nos) interlocking (0.75 KW) @ 17% on time & 83% off time. 14. VTL I oven low fire during break time (pilot project) 15. Optimization of Pumping oven in 18w (VTL-3) 16. Optimization of transformer No 4 voltage (435V to 415V) 17. Conversion of gas fired sintering to electrical heated at CFL-1, 3, 5,7. 18. Conversion of gas fired heat exchanger to electrical heated on all CFL lines. 19. Philips design injector blocks to save gas on all CFL lines (Horizontal deployment) 20. Pump oven extension to glowing positions & switching off heaters of zone I at CFL-1,5,11. b) POWER & FUEL CONSUMPTION AT GLASS FACTORIES Particulars Unit 2011-12 2010 Electricity a. Purchased Unit 000 kwh 5,542.91 4,096.58 Rate Rs./kwh 6.46 6.23 Total Rs.000 35,807.21 25,512.11 b. Own generation Unit 000 kwh 902.33 897.38 Rate Rs./kwh 2.29 2.20 Total Rs.000 2,065.44 1,974.23 Total electricity 000 kwh 6,445.24 4,993.95 Cost Rs.000 37,872.65 27,486.34 LPG/Propane/Natural Gas Unit Tonnes/M3 7,780,548.92 5,684,412.19 Rate Rs./Tonne/M3 11.71 10.60 Total Rs.000 91,110.23 60,254.77 Furnace oil Unit KL 4.50 - Rate Rs./KL 41.50 - Total Rs. 000 186.75 - Consumption per kg. of glass production 2011-12 2010 Product Unit TL SHELLS/GLS TL SHELLS/GLS Electricity KWH 0.18 0.21 Furnace oil LTR 0.00 LPG/Propane/Natural Gas TONNE/M3 0.22 0.24 B) TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION RESEARCH & DEVELOPMENT (R&D) - January 2011 - March 2012 1. Specific areas in The Company's management believes that which R & D is carried continuous effort to establish a strong out by the company performance in the fields of R&D vis-a-vis product and process development and import substitution are of paramount importance to preserve and strengthen the competitive position the Company holds in various product segments. The Company's R&D laboratories have been instrumental in providing the Company with a sustainable competitive advantage through application of Science and Technology. The specific areas in which R & D is carried out include: (1) Energy efficient and environmental friendly lighting product, system and solution for Indian urban and rural market. This involves luminaire system and solutions driven by conventional and non conventional energy sources. Product range also supports infrastructural development including road, port, area, sports lighting etc (2) Design, development and testing of Medical Imaging products such as Cardio Vascular Systems, Surgery C-Arms, Analog Radiography systems etc. 2. Benefits derived as a (1) 36 new products for various application result of R & D involving efficient LED, solar and conventional products, energy efficient LED light sources and CDM-TT Lamps (2) Developed Floatex Analog Radiography product (15KW): analog radiography product released to India in Q4 2011. (3) Two new multi year programmes were initiated. One for Mid range Cathlab, and another for mid-range C arm for Indian & International markets. 3. Future plan of action (1) Have a Roadmap for 2012-15 with high emphasis on LED Lighting solutions for all application and Solar street Lighting for complete range. Controls and solutions embeded in luminaires for efficient and intelligent luminaires. (2) Engage in Research & Development of new generation Value Cathlabs, Mobile C-Arms and Diagnostic X-Rays.The idea is to blend the Philips technology expertise with the insight from the acquired companies Alpha X-Ray Technologies (India) Private Limited and Meditronics Healthcare Private Limited. 4. Expenditure on R & D Rs. (in Mln.) a. Capital 15 b Recurring 327 c. Total 342 d Total R&D expenditure as % of total turnover 0.61% TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Effortsjn brief, made Efforts put in for getting indepth technical towards technology knowledge for solar power; thermal absorption, adaptation management, optics development etc . and innovation 2. Benefits derived as a Attainment of higher customer satisfaction/ result of above efforts, better environmental scoring/growth and e.g. product improvement, profitability in business. cost reduction, product development, import substitution. 3. In case of imported Technology imported Year of commencement technology (imported of production during the last 5 years reckoned from the beginning of the financial year) following may be furnished. Nil Not Applicable C) FOREIGN EXCHANGE EARNINGS AND OUTGOINGS Activities relating to exports: The Company continues to strive to improve its export earnings. The Company exports its products to United States, Hong Kong, Malaysia, Singapore, Sri Lanka, Nepal, Bangladesh, Argentina SA, Brazil, Chile, Mexico, Colombiana, Peruana, Central America and Uruguay. In addition, the Company's Software Division (Philips Innovation Campus) exports embedded Software to Koninklijke Philips Electronics N.V., the Netherlands. Total foreign exchange used and earned Rs. (in Mln.) Foreign exchange earned 6,970 Foreign exchange used: i. Import of capital goods 240 ii. Import of raw materials & spares 1,923 iii. Other expenditure 4,942 7,105