47th

ANNUAL REPORT
2015 - 16

THE HANDLOOM EXPORT PROMOTION COUNCIL

 2 47th Annual Report 2015 - 2016
MEMBERS OF THE EXECUTIVE COMMITTEE
Chairman: Shri V. Kumar,
M/s. The Standard Textiles, Karur.

ViceChairman: Dr. K.N. Prabhu,

M/s. Paradigm International,Karur.

EX-OFFICIO CENTRAL GOVT. NOMINEES

1. Development Commissioner for Handlooms, Ministry of Textiles, Govt. of India, New Delhi.
2. Joint Secretary (Exports), Ministry of Textiles, Govt. of India, New Delhi.
3. Executive Director, Handloom Export Promotion Council, Chennai.

ELECTED MEMBERS

1. Shri V. Kumar, M/s. The Standard Textiles, Karur.

2. Dr. K.N. Prabhu, M/s. Paradigm International, Karur.
3. Shri Gagan Rai, M/s. Seth Kumar Rai International, New Delhi.
4. Shri R. Rajendiran, M/s. Trident Home Furnishing (P) Ltd, Chennai.
5. Shri P. Gopalakrishnan, M/s. Metro Fabrics, Karur.
6. Shri Rajiv Agrawal, M/s. Silko Internationaal, Varanasi.
7. Shri T.V. Chandrasekaran, M/s. Rakhava Impex, Karur.
8. Shri M. Charles, M/s. JVS Export, Madurai.
9. Shri M. Thirumurthy, M/s. Unity Exports, Karur.
10. Shri Ramesh Kumar Chugh, M/s. Sheena Exports, Panipat.
11. Shri K.M. Saleem, M/s. K.A.S. Zainulabdin & Co, Chennai.
12. Shri K. Kumaravel, M/s. Ponni Fab, Karur.
13. Shri P. Sathiya Narayanan, M/s. C. Periasami & Co., Karur.
14. Shri N.R. Venkatachalam, M/s. Asian Fabricx Pvt. Ltd., Karur.
15. Shri V.C. Selvan, M/s. American Textile Company, Karur.
16. Smt. Rita Jha, M/s. S.R. Overseas, Bhagalpur.

CO-OPTED MEMBERS

1. Shri M. Britto, M/s. C. Swaminatha Mudaliar Sons & Co., Madurai.

2. Shri Vinod Dhamija, M/s. Sahil International (PNP), Panipat.

Executive Director: R. Anand IPoS,

Auditors: M/s. R Gopalakrishnan & Co
Bankers: State Bank of India, Thousand Lights Branch, Chennai.
 2015 - 2016 47th Annual Report 3
THE HANDLOOM EXPORT PROMOTION COUNCIL
No.34, Cathedral Garden Road, Nungambakkam, Chennai – 600 034.
NOTICE
Notice is hereby given that the Forty Seventh Annual General Meeting of the Handloom Export
Promotion Council will be held at 12.00 noon on Monday the 12th September 2016, at the
Conference Hall of Council’s Premises to transact the following business.
1. To receive and to adopt the Annual Report of the Council for the year ended 31st March
2016, the Audited Balance Sheet, the Income & Expenditure Account for the year ended
31st March 2016, the report of the Auditors thereon and the report of the Executive
Committee.
2. To appoint Auditor for auditing the accounts of the Council for the year 2016-17 and fix
their remuneration.
3. To elect members to the Executive Committee in the place of members retiring by rotation.
(By order)
Sd/-
Date: 27.08.16 Secretary Cum Executive Director
Registered Office:
No. 34, Cathedral Garden Road, Nungambakkam,
Chennai – 600034.
NOTE
1. No TA/DA is admissible for attending the Annual General Meeting.
Members/RTEs who require clarifications in respect of any matter connected with the
Annual Report/ Audited Accounts are requested to send their queries so as to reach the
Council at least ten days in advance of the meeting to enable the office to get the details
available.
2. Council’s Members/RTEs are requested to bring their copies of the Annual Report with them
as spare copies will not be available at the meeting.
3. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote
Instead of himself and a proxy need not be a member.
 4 47th Annual Report 2015 - 2016
EXPLANATORY STATEMENT
ITEM NO.2: To Appoint Auditor for Auditing the Accounts of the Council for the Year
2016-17 and Fix their Remuneration.
At the 46 Annual General Meeting held on 21-09-15, M/s R. Gopalakrishnan & Co.,
th

Chennai were appointed as Auditor of the Council for the year 2015-16 at a remuneration of
Rs.40000/- per annum.
The General Body may kindly consider the appointment of Auditor for auditing the accounts of
the Council for the year 2016-17 and also fix their remuneration.
ITEM NO.3: To Elect Members to the Executive Committee in the Place of Members
Who Retire by Rotation.
Product Groups
Handloom Fabric/Lunghies/Real Madras Handkerchiefs
1. Shri M. Thirumurthy,
M/s. Unity Exports, Karur
Handloom Floor Coverings
1. Shri Ramesh Kumar Chugh,
M/s. Sheena Exports, Panipat
2. Vacant
3. Vacant
Handloom Made ups
1. Shri K. Kumaravel,
M/s. Ponni Fab, Karur
2. Shri P. Sathiya Narayanan,
M/s. C. Periasami & Co., Karur
3. Shri Gagan Rai,
M/s. Seth Kumar Rai International, New Delhi
4. Shri M. Charles,
M/s. JVS Export, Madurai

The election has to be held for the following categories:

Product Groups Vacancies to be filled
1. Handloom Fabrics/Lunghies/ RMHKs 1
2. Handloom Floor Coverings 3
3. Handloom Made ups 4
Total 8
The procedure as laid down in Clauses 37(g) & (h) and other relevant clauses of the Articles of
Association of the Council and Election Rules will be followed for the nomination of candidates.
 2015 - 2016 47th Annual Report 5
REPORT OF THE EXECUTIVE COMMITTEE FOR THE YEAR 2015-16
MEMBERSHIP OF THE COUNCIL
The total number of Members / RTEs of the Council at the end of the year 2015-16 were 1417.

As on 1st April, 2015 1313

Number of Members/RTEs removed from membership roll
DEDUCT: on account of default in payment of subscription, 215
Resignation, change in constitution, etc.,
ADD: Number of Members/RTEs restored 84
Number of RTEs included in membership roll on
ADD: 235
account of fresh enrolment
As on 31.03.2016 1417

CONSTITUTION OF THE EXECUTIVE COMMITTEE

CHAIRMAN
Shri V. Kumar, (from 29/03/2016 to 28/03/2018)
M/s. The Standard Textiles, Karur.
Shri Gagan Rai, (upto 28.03.2016)
M/s. Seth Kumar Rai International, New Delhi.
VICE CHAIRMAN
Dr. K.N. Prabhu, (from 29/03/2016 to 28/03/2018)
M/s. Paradigm International, Karur.
Shri R. Rajendiran, (upto 28.03.2016)
M/s. Trident Home Furnishing (P) Ltd., Chennai.
CENTRAL GOVERNMENT NOMINEE MEMBERS
1. The Development Commissioner for Handlooms, Ministry of Textiles, Government of India,
New Delhi.
2. The Joint Secretary (Exports), Ministry of Textiles, Government of India, New Delhi.
3. The Executive Director, Handloom Export Promotion Council, Chennai.
CO-OPTED MEMBERS
1. Shri M.Britto (from 31.01.2016 upto AGM)
M/s. C. Swaminatha Mudaliar Sons & Co, Madurai.
2. Shri Vinod Dhamija, (from 31.01.2016 upto AGM)
M/s. Sahil International (PNP), Panipat.
 6 47th Annual Report 2015 - 2016
ELECTED MEMBERS
Handloom Fabric/Lunghies/Real Madras Handkerchiefs
1. Shri M. Thirumurthy, (Elected on 25.09.2013)
M/s. Unity Exports, Karur.
2. Shri K.M. Saleem, (Elected on 03.03.2016)
M/s. K.A.S. Zainulabdin & Co, Chennai.
Handloom Floor Coverings
1. Shri Ramesh Kumar Chugh, (Elected on 25.09.2013)
M/s. Sheena Exports, Panipat.
2. Shri N.R. Venkatachalam, (Elected on 03.03.2016)
M/s. Asian Fabricx Pvt. Ltd., Karur.
3. Vacant
4. Vacant
Handloom Made ups
1. Shri V. Kumar, (Elected on 03.03.2016)
M/s. The Standard Textiles, Karur.
2. Dr. K.N. Prabhu, (Elected on 03.03.2016)
M/s. Paradigm International, Karur.
3. Shri Gagan Rai,
M/s. Seth Kumar Rai International, New Delhi. (Elected on 25.09.2013)
4. Shri R. Rajendiran,
M/s. Trident Home Furnishings (P) Ltd., Chennai. (Elected on 03.03.2016)
5. Shri P. Gopalakrishnan, (Elected on 03.03.2016)
M/s. Metro Fabrics, Karur.
6. Shri T.V. Chandrasekaran, (Elected on 03.03.2016)
M/s. Rakhava Impex, Karur.
7. Shri M. Charles, (Elected on 25.09.2013)
M/s. JVS Export, Madurai.
8. Shri K. Kumaravel, (Elected on 25.09.2013)
M/s. Ponni Fab, Karur.
9. Shri P. Sathiya Narayanan, (Elected on 25.09.2013)
M/s. C. Periasami & Co., Karur.
 2015 - 2016 47th Annual Report 7
10. Shri V.C. Selvan, (Elected on 03.03.2016)
M/s. American Textile Company, Karur.
Others including Handloom Clothing Accessories
1. Shri Rajiv Agrawal, (Elected on 03.03.2016)
M/s. Silko International, Varanasi.
2. Smt. Rita Jha, (Elected on 03.03.2016)
M/s. S.R. Overseas, Bhagalpur.
1. Meetings of the Council:
a) The 46th Annual General Meeting of the Council was held on 21.09.2015 at Council’s
premises.
b) Meetings of the Executive Committee
29.08.2015 201st Executive Committee Meeting
30.01.2016 202nd Executive Committee Meeting
10.03.2016 203rd Executive Committee Meeting
29.03.2016 204th Executive Committee Meeting

FINANCE
The total revenue for 2015-16 was Rs. 946.86 Lac comprising of
Subscription and entrance fee of Membership Rs. 81.90 Lac
Miscellaneous receipts including Participation fee Rs. 790.43 Lac
MDA & MAI Grant from Government including
Grant for member exporters Rs. 74.53 Lac
The total expenditure was Rs. 890.71 Lac was classified such as
Participation in Fairs/Exhibitions/BSMs abroad, Publicity abroad
and Publication in etc., and
Disbursement of grant to member exporters Rs. 523.15 Lac
The expenditure on non-code activities including
Depreciation on assets Rs.367.56 Lac
As on 31st March 2016, the total investment of Rs.258.39 Lac under Fixed Deposit in
Nationalized Banks and Government.
 8 47th Annual Report 2015 - 2016
EXPORT PROMOTION ACTIVITIES 2015-16
EXHIBITIONS ABROAD
1. Hong Kong International Home Textiles & Furnishings Fair, Hong Kong (20-23, April
2015)
Council participated for the 11th year in the Hong Kong International Home Textiles & Furnishings
Fair organized by Hong Kong Trade Development Council (HKTDC) at Hong Kong from 20-23rd
April 2015. HKTDC has recognized HEPC as one of their Supporting Organisation of the fair
and given publicity in their website and fair brochures.
HEPC participated with 33 member exporters by taking space of 360sq. mtrs. and had also put
up central pavilion stall in the fair. As per the feedback received from the participants, business
enquiries worth Rs.13.74 crore and spot orders worth Rs.2.73 crore were generated at this fair.
The event was organised for the 5th time in succession availing financial grant under Market
Access Initiative (MAI) scheme of Ministry of Commerce & Industry, Govt. of India.
2. Hometextile Sourcing Expo, New York, USA (21 – 23, July 2015)
Home Textiles Sourcing Expo (HTSE) is held once a year in July alongside Texworld USA &
Apparel Sourcing Expo to create the largest fabric sourcing destination for the North American
marketplace. The event is organized by Messe Frankfurt, Inc., USA.
The Council participated in sixth edition of Home Textiles Sourcing Expo which was held from July
21 - 23, 2015 at the Javits Convention Center in New York City. Exhibits at the show included
full spectrum of fabric and finished soft-goods manufactured in the following categories: Bath,
bed, floor coverings, kitchen, outdoor, pillows, tabletop, upholstery, wall coverings and window
coverings.
Council participated in the event with 10 members by booking a space of 102 sq.mtrs which
included a Central Promotion stall by Council. As per participants’ feedback, spot orders worth
Rs.1.04 crore and business enquiries worth Rs.6.52 crore were received during this fair.
The event was organized under National Handloom Development Programme of %. The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
3. 26th India Home Furnishing Fair, Osaka, Japan (22-24, July 2015)
India Home Furnishing Fair organized by India Trade Promotion Organisation (ITPO) at Osaka,
Japan is an ideal showcase for Home Textiles and is organized along with Indian Garment Fair
to form Japan’s largest comprehensive exhibition of Home Furnishing and Garments. Handloom
Export Promotion Council has been participating in this fair for more than a decade. In this
26th edition held at Osaka, Japan during 22-24th July 2015, HEPC had participated with 29
member exporters by taking constructed booth area of 375 sq.mtrs. and HEPC had also put up
Central Promotional Stall in the fair.
 2015 - 2016 47th Annual Report 9
As per the feedback received from our participants, spot order worth Rs.1.76 crore and
enquiries worth Rs.11.66 crore were generated at this fair.
The event was organized under Market Access Initiative Scheme of Ministry of Commerce &
Industry, Govt. of India.
4. Textil House Fair, Sao Paulo, Brazil (13-16, August 2015)
Council organized participation in 8th edition of Têxtil House House Fair, Sao Paulo, Brazil from
13th – 16th August 2015. The event was organized by Grafite Feiras e Promoções – one of the
important trade promoters in Brazil. The event focused on hometextile products for autumn-
winter season. Nine exhibitors participated in the event through the council in a total area 102
m2.As per participants’ feedback, spot orders worth Rs.1.84 crore and business enquiries worth
Rs.5.13 crore were received during this fair.
The event was organized under National Handloom Development Programme of O/o.The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
5. Intertextile Shanghai Home Textiles, Shanghai, China (26-28, August 2015)
Council participated in the Intertextile Shanghai Home textiles, held at Shanghai, China, from
26h-28th August 2015 with 10 participants and had also put up a promotional stall in the fair
by taking an area of 99 sq.mtrs. As per participants’ feedback, spot orders worth Rs.0.43 crore
and business enquiries worth Rs.4.03 crore were received during this fair.
The event was organized under National Handloom Development Programme of O/o. The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
6. WHO’s NEXT, Paris, France (4-7, September 2015)
Council participated in the summer edition of WHO’s NEXT held at Paris, France from 4-7th
September 2015. Council has been participating in this fair from 2010 and this was Council’s
4th participation in the WHO’s NEXT PARIS.
Council participated with 22 participants (12 with grant; 10 without grant) by booking space
of 260 sq. mtrs. Council had put up a promotional stall and also hired hostess for distributing
publicity materials to visitors. As per the feedback received from member participants, spot
orders worth Rs.14 crore had been booked and enquiries to the tune of Rs.16.04 crore were
generated.
The event was organized under National Handloom Development Programme of %. the
Development Commissioner for Handlooms (DCH), Ministry of Textiles, Government of India.
7. Maison & Objet, Paris, France (4-8th September 2015)
The International Home Décor exhibition Maison & Objet is held at Paris, France, twice every
year, during the month of September and January. Organised by one of the leading fair
organisers namely SAFI (Salons Francais Et Internationux), France, this event positions itself as
 10 47th Annual Report 2015 - 2016
one of the premium event for high quality brands.
Council organized participation for 11 member exporters (10 with grant; 1 without grant) in
this event under Market Development Assistance (MDA) of Ministry of Commerce & Industry,
Govt. of India with a total space of 102 sq.mtrs. The participants reported that they had
booked spot orders worth Rs.0.46 crore and business enquiries to the tune of Rs.2.41 crore were
generated during this event.
8. Global Home Show, New York, USA (27th Sept. - 01st Oct. 2015)
Council participated for the first time in Global Home Show 2015 held from 27th September
to 1st October 2015 during Market week in New York, USA. The publisher of Home & Textiles
Today (H&TT) organized the 12th edition of the event at 13-15 West 28th Street, Fifth Avenue,
New York. The event was organized concurrently with New York Homefashion Market Week.
The event was organized under National Handloom Development Programme of O/o. The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India with 8 member
exporters. As per participants’ feedback, total business enquiries worth Rs.4.25 crore were
generated during this fair.
9. India Trend Fair, Tokyo, Japan (27-29, October 2015)
India trend fair was organized in Tokyo by Japan India Industry Promotion Association during
27-29th October 2015. It was a B2B trade fair concentrating on fashion & textiles, bags & shoes,
jewellery & accessories, interior and sundries. The venue of the fair was Sumitomo Fudousan
Shibuya, Garden Tower b1f, 16-17 Nanpeidai, Shibuyaku, Tokyo, Japan.
Council participated in India Trend Fair, Tokyo, Japan from 27-29th October 2015 with 10
member exporters. The participation was undertaken by getting space through Apparel Export
Promotion Council. As per participants’ feedback, business enquiries worth Rs.4.42 crore were
generated during this fair.
10. China Import & Export Fair (CANTON), Guangzhou, China (31st Oct. –4th Nov. 2015)
China Import and Export Fair, also known as the Canton Fair, is held biannually in Guangzhou
every spring and autumn, with a history of 56 years since 1957. The Fair is a comprehensive one
with the longest history, the highest level, the largest scale, the most complete exhibit variety, the
broadest distribution of overseas buyers and the greatest business turnover in China.
Council organised participation of 10 member exporters for the third time in the China Import
and Export Fair which was held at China from 31st Oct to 4th Nov. 2015 by hiring total space of
99 sq.mtrs, which also included a Council’s central promotion stall at Hall 15.1. Council’s stalls
were allotted in International Pavilion under Textile fabrics segment. Spot orders worth Rs.1.59
Crore and business enquiries worth Rs.6.20 crore were generated by our member participants
during the event.
The event was organized under Market Development Assistance (MDA) of Ministry of Commerce
 2015 - 2016 47th Annual Report 11
& Industry, Govt. of India.
11. International Sourcing Expo, Melbourne, Australia (16-18, November 2015)
Council organized participation of 14 member exporters (10 with grant; 4 without grant)
in Australia International Sourcing Fair held at Melbourne during 16–18 November 2015.
Total space of 135 sq.mtrs. was hired for stalls of member exporters and Council’s central
promotional stall at the fair.
As per participants’ feedback, totally 277 business visitors visited their stalls, spot orders worth
Rs.0.72 crore and business enquiries worth Rs.18.11 crore were generated during the event.
Members reported that participation in this fair facilitated to gain entry into Australia and New
Zealand.
The event was organized under National Handloom Development Programme of O/o The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
12. Heimtextil, Frankfurt, Germany (12-15, January 2016)
Heimtextil is the biggest international trade fair for home and contract textiles and the global
benchmark for quality design textiles of innovative functionality. Occupying 19 exhibition halls,
the leading international trade fair for the sector presents the entire portfolio for textile interior
design and textile furnishings for commercial projects: from products for windows, upholstery,
floors, walls and sun protection to textiles for the bathroom, bed and table.
Council organized participation of 54 member exporters in Heimtextil fair held at Frankfurt,
Germany during January 12-15, 2016. Council had hired total space of 964 sq.mtrs. (346
sq.mtrs. in Hall 6.3 and 618 sq.mtrs. in Hall 10.3) accommodating 24 exhibitors in Hall 6.3 and
30 exhibitors in Hall 10.3.
According to Messe Frankfurt’s report, more than 69,000 trade visitors (2015: 67,861) attended
the fair. 2,866 exhibitors from 137 countries (2015: 2,723 from 68 countries) participated in
the current edition. Out of 2866 exhibitors, Germany had 318 exhibitors and remaining 2549
were from overseas countries thus constituting about 89% international participation. This year’s
Heimtextil saw a growth in exhibitors from Europe, in particular Turkey, Italy, the Netherlands
and Belgium, as well as global exhibitors from many countries including Brazil and the USA.
As per the feedback received from our member participant business generated during this
fair was around Rs.70 crore (Rs.15.12 crore – spot order and Rs.55.08 crore – business
enquiries).
The event participation was organized under Market Access Initiative Scheme (MAI) of Ministry
of Commerce & Industry, Government of India.
13. Domotex, Hannover, Germany (16-19, January 2016)
Council organized participation in Domotex held at Hannover, Germany during 16-19th January
 12 47th Annual Report 2015 - 2016
2016 with 5 member exporters. The participation was undertaken by getting space through
Carpet Export Promotion Council.
14. Hong Kong Fashion Week, Hong Kong (18-21, January 2016)
Council organized participation in Hong Kong Fashion Week, Hong Kong from 18-21 January
2016 with 13 member exporters of EUPEA besides Council’s Central Promotional Stall by
taking an area of 126 sq.mtrs.As per participants’ feedback, spot orders worth Rs.1.03 crore
and business enquiries worth Rs.1.51 crore were received during this fair.
The event was organized under Comprehensive Handloom Cluster Development Scheme of
O/o. The Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
15. WHOs NEXT, Paris, France (22-25, January 2016)
WHO’S NEXT fair is a premium fair for fashion and fashion accessories in Paris. The winter
edition of WHO’s NEXT fair was held during January 22-25, 2016.
Council participated in the winter edition of WHO’s NEXT Show held at Paris, France with 25
participants (12 with grant; 13 without grant) and had also put up a promotional stall at the
fair by taking an area of 273 sq.mtrs. As per the feedback received from member participants
spot orders worth Rs.5.58 crore had been booked and enquiries to the tune of Rs.6.33 crore
were generated.
The event was organized under National Handloom Development Programme of O/o.The
Development Commissioner (Handlooms), Ministry of Textiles, Govt. of India.
EXHIBITIONS IN INDIA
1. Indian Handicrafts & Gift Fair (Autumn), Greater Noida (14-18, October 2015)
The 40th Edition of Indian Handicrafts & Gift Fair (Autumn) was held at Greater Noida from
14-18th October 2015.
Handloom Export Promotion Council participated in this fair under National Handloom
Development Programme of the Office of Development Commissioner (Handlooms), Ministry of
Textiles, Govt. of India with 13 member exporters besides Council’s Central Promotional Stand.
EPCH has provided only 10 booths in main Hall & remaining 3 booths in Mart Area.
As per participants’ feedback, spot orders worth Rs.1.03 crore and business enquiries worth
Rs.3.02 crore were generated during this fair.
2. Indian Handicrafts & Gift Fair (Spring), Greater Noida (20-23, February 2016)
The 41st Edition of Indian Handicrafts & Gift Fair (Spring) was held at Greater Noida from 20-
23rd February 2016.
Council participated in this fair with 6 member exporters besides Council’s Central Promotional
 2015 - 2016 47th Annual Report 13
Stand.
As per participants’ feedback, spot orders worth Rs.1.74 crore and business enquiries worth
Rs.2.97 crore were generated during this fair.
3. India International Handwoven Fair (IIHF), Chennai (9-11, March 2016)
Handloom Export Promotion Council under Market Access Initiative (MAI) Scheme of Ministry of
Commerce and Industry, Government of India organized the 6th edition of India International
Hand-woven Fair (IIHF) during March 9-11, 2016 as Reverse Buyer Seller Meet at Chennai
Trade Centre, Chennai, Tamil Nadu.
The event in its 6th edition was conceptualised by HEPC in the year 2011 to provide a platform
for the manufacturers, exporters, cooperatives and clusters of Indian Handwoven textiles to
explore the market potential for their products in International market. IIHF provides an ideal
platform to portray the rich heritage and vast range of Indian Hand-woven textiles from all
parts of the country to the visiting International Buyers. The main product included contemporary
products in home décor segment viz. Home textiles, Clothing accessories, Jute, Handicrafts etc.,
Smt. Rashmi Verma, IAS, Secretary, Ministry of Textiles, Govt. of India was the Chief Guest on the
Inaugural Day of the event and Shri Alok Kumar IAS, Development Commissioner (Handlooms),
Ministry of Textiles, Govt. of India was the Guest of Honour.
ABOUT PARTICIPANTS:
• The event had 171 exhibitors from all over India which included 29 participants
under Directorate of Handlooms & Textiles, Govt. of Andhra Pradesh, Kerala and
Tamil Nadu. In terms of number of participants, Tamil Nadu topped the list with 70
participants followed by Kerala (21 Nos.), Andhra Pradesh (17 Nos.), & Uttar Pradesh
(11 Nos.). Among participants from North East, Assam had 11 participants.
• Apart from Merchant and Manufacturer exporters of the Council, the participants
included Apex cooperatives and state agencies such as CO-OPTEX, APCO, BOYANIKA,
TANTUJA, JHARKRAFT, HANVEEV, HANTEX, Handloom House, HHEC of India Ltd etc.,
exporters of the Council.
• Further, the event also provided opportunity for primary cooperatives and clusters (29
Nos.) from the state of Tamil Nadu, Kerala, Andhra Pradesh through their respective
Directorate of Handlooms & Textiles.
• For the first time, India Handloom Brand registered participants (6 Nos.) exhibited in
the event. As in the past, National Jute Board also participated in the event along with
ten of their member exporters.
EVENT OUTCOME:
• As per feedback from participants, total business generated during the fair was
 14 47th Annual Report 2015 - 2016
Rs.14.87 crore including spot order worth Rs.2.61 crore (31 participants) and business
enquiries of Rs.12.26 crore (120 participants). In comparison, the total business
generated during the previous edition in 2015 was Rs.7.50 crore.
• Council also encouraged the participation of designers so as to woo buyers of niche
market product.
• Council also organised seminars inviting speakers from Australia and Japan to present
market trend in their respective markets.
• A complimentary Interpreter service for Japanese, French & Portuguese languages
was arranged for the participants.
AWARDS:
• Best display awards for 8 participants (3 among exporters’ category, 2 among
designers’ category and 3 among co-operative/ clusters category) were given as a
measure to improve display standards during fair participation.
• The best display award was distributed by Shri Harmander Singh IAS, Principal
Secretary, Handlooms, Handicrafts, Textiles and Khadi Department, Govt. of Tamil
Nadu.
Meeting/Field Visits
1. ED attended meeting on Hank Yarn Obligation under the Chairmanship of DC
(Handlooms) on April 07, 2015 at New Delhi.
2. ED and EPO, HO attended meeting on Hank Yarn Obligation survey at Coimbatore on
April 13 & 14, 2015.
3. EPO, RO attended meeting chaired by JS (Exports) to discuss issues pertaining to Rules
of Origin under RCEP on April 17, 2015 at New Delhi.
4. Chairman and ED attended meeting chaired by JS (Exports) to review the export
performance of 2014-15 and fixation of export targets for 2015-16 on April 23,
2015 at New Delhi.
5. ED attended meeting on Hank Yarn Obligation along with Shri S.Srinivas, CMD,
NHDC, Shri T.L.Balakumar, DD & Officer in-charge, Regional Office of the Textiles
Commissioner, Coimbatore and Shri Pritam Sonawane, Senior Consultant, Techno Pak
at Council’s office on April 24, 2015 and finalized the survey report.
6. EPO, RO attended meeting chaired by JS (Exports) on issues related to Interest
Subvention Rates on May 06, 2015 at New Delhi.
7. Executive Director attended meeting with Development Commissioner (Handlooms)
and apprised issues related to handloom sector on May 07, 2015 at New Delhi.
2015 - 2016 47th Annual Report 15
8. Chairman, HEPC had an introductory meeting with Development Commissioner
(Handlooms) on May 08, 2015 at New Delhi.
9. EPO, RO attended meeting chaired by JS (Exports), MoC&I on Foreign Trade policy
2015-20 on May 11, 2015 at New Delhi.
10. ED attended inauguration of IJCCI Centre of Excellence which was inaugurated by Shri
Seiji Baba, Consul General of Japan on May 15, 2015 at Chennai.
11. ED attended interactive session on Goods and Services Tax organized by FIEO on
May 18, 2015 at Chennai.
12. ED met the Commissioner, Service Tax, Chennai Region on May 20, 2015 and explained
Council’s position with respect to the show cause notice issued by the department
requesting therein for settlement of the issue.
13. EPO, RO attended meeting chaired by JS (Exports) on CVD Exemption on May 27,
2015 at New Delhi.
14. Shri Alok Kumar IAS, DC (Handlooms) launched the revamped website of the Council
on June 03, 2015 at New Delhi. Chairman, Vice Chairman and ED, HEPC attended
the programme.
15. EPO, RO attended meeting of the Implementation Committee of NCTD chaired by
Secretary (Textiles) and DC (Handlooms) on selection of designs developed by WSCs
under the theme “Tradition & Trend” on June 26, 2015 at New Delhi.
16. EPO, RO attended committee meeting of publicity and campaign of “Indian Handloom
Brand” chaired by DC (Handlooms) on June 30, 2015 at New Delhi.
17. EPO, RO attended pre-bid meeting for the RFP on selection of Creative Agency for
promotion of Indian Handlooms on July 10, 2015 at New Delhi.
18. Superintendent, RO attended pre-bid meeting for selection / appointment of media
agency for promotion of Indian Handlooms on July 21, 2015 at New Delhi.
19. Material submitted for the review meeting convened by Secretary (Textiles) at his
Chamber on export performance of current financial year and to discuss the steps to
be taken to boost exports of textiles industry on July 22, 2015 at New Delhi.
20. EPO, RO attended meeting chaired by Dr.Guruprasad Mohapatra, JS, FT(CIS) on
preparing the strategy paper for CIS countries on Non-Tariff Barriers on July 28,
2015 at New Delhi.
21. ED attended committee meeting chaired by Development Commissioner (Handlooms)
for selection of creative agency for promoting India Handloom Brand on August 11,
2015 and August 17, 2015 at New Delhi.
16 47th Annual Report 2015 - 2016
22. EPO, RO attended meeting chaired by JS (Exports) to discuss RCEP matters on
September 02, 2015 at New Delhi.
23. Chairman & ED attended interactive meeting chaired by Secretary (Textiles) on India
Handloom Brand on September 16, 2015 at New Delhi.
24. EPO, RO attended sub-committee meeting chaired by JS(E&MDA), Dept. of Commerce
on MAI proposals for 2016-17 on September 17, 2015 at New Delhi.
25. EPO, RO attended meeting of Monitoring Committee for publicity media campaign to
promote Indian Handloom Brand chaired by DC(Handlooms) on September 17, 2015
at New Delhi.
26. EPO, RO attended meeting chaired by ADC (Handlooms) on e-Commerce for the
Handloom sector on September 21, 2015 at New Delhi.
27. ED attended meeting of the review committee for inclusion of new products under India
Handloom Brand chaired by DC (Handlooms) on September 30, 2015 at New Delhi.
28. ED attended meeting convened by Commerce Secretary to discuss issues relating to
decline in export of various commodities from India on October 07, 2015 at New
Delhi.
29. Chairman attended 8th edition of flagship Conference for Textiles & Apparel Industry
TEXCON 2015 organised by Confederation of Indian Industry (CII) and handled a
session on Unorganised Sector – Precondition for progression of Indian Textile Sector
on October 16, 2015 at New Delhi.
30. ED discussed with Prof.Piyush Sinha, Indian Institute of Management, Ahmedabad
regarding proposed study on analyzing the current handloom export strategy on
October 19, 2015 at Ahmedabad.
31. ED attended meeting chaired by DC (Handlooms) to examine the genuineness of
expenditure incurred on National Handloom Day held on August 07, 2015 on October
19, 2015 at New Delhi.
32. EPO, RO attended meeting convened by Shri Ravi Capoor, JS (DOC) on amendment
of Articles of Association on October 27, 2015 at New Delhi.
33. ED and EPO, RO attended meeting of the review committee chaired by DC (Handlooms)
for inclusion of new products under India Handloom Brand on October 29, 2015 at
New Delhi.
34. ED and EPO, RO attended meeting chaired by Secretary (Textiles) on Pre Budget
preparation on October 30, 2015, New Delhi.
35. In connection with IIHF 2016 to be held at Chennai during 9-11th March 2016,
Participants mobilization drive was conducted at Panipat on 26 & 27th November
2015 - 2016 47th Annual Report 17
2015.
36. Chairman and EPO, RO attended EC Meeting chaired by Commerce Secretary on MAI
proposals 2016-17 on December 02, 2015 at New Delhi.
37. EPO, RO attended meetings on selection of Creative Agency for promotion of Indian
Handlooms on December 04 and 10, 2015 at New Delhi.
38. ED attended meeting on selection of Creative Agency for promotion of Indian
Handlooms on December 21, 2015 at New Delhi.
39. Superintendent, RO attended seminar on “Niryat Bandhu” at Panipat on December
21, 2015.
40. ED attended meeting with Secretary (Textiles) on 4th January 2016 at New Delhi.
41. ED attended meeting on National Handloom Development Programme and
Comprehensive Handloom Cluster Development Scheme at Hyderabad on 12th
January, 2016.
42. EPO, RO attended meeting chaired by Joint Secretary (Textiles) on India’s initial goods
offer under RCEP on 4th February 2016 at New Delhi.
43. ED attended review of committee meeting to include new products under India
Handloom Brand on 6th February, 2016 at Weavers’ Service Centre at New Delhi.
44. EPO, RO attended meeting chaired by Development Commissioner (Handlooms) on
Make in India Exhibition on 8th February, 2016 at New Delhi.
45. ED attended meeting chaired by Development Commissioner (Handlooms) on Study on
Autonomous Bodies on 16th February 2016 at New Delhi.
46. EPO, RO attended meeting chaired by Development Commissioner (Handlooms) on
IHB & Block Level Cluster on 26th February 2016 at New Delhi.
47. ED attended meeting chaired by Development Commissioner (Handlooms) on India
Handloom Brand on 29th February 2016 at New Delhi.
48. EPO, RO attended workshop organized by NHDC on 18th March 2016 at Panipat.
49. ED attended meeting chaired by JS(E&MDA) on demonstration of working module of
the online evaluation & monitoring of the proposals submitted under MAI schemes on
22nd March 2016 at New Delhi.
50. ED & EPO, RO attended meeting on India Handloom Brand on 22nd March 2016 at
New Delhi.
 18 47th Annual Report 2015 - 2016
Seminars/workshops
1. Seminar at Chanderi on 11.06.2015
In order to sensitize the handloom industry about the intricacies involved in export trade, HEPC
has organized a workshop titled “Export awareness - Export marketing and procedures” at
Hotel Shrikunj, Chanderi, Madhya Pradesh on 11.06.2015 under MDA scheme of Department
of Commerce, MOC&I, Government of India. Smt. Deepti Gaur Mukherjee IAS, Commissioner,
Department of Handicrafts and Handlooms, Government of Madhya Pradesh was the chief
guest. Shri Parmindar Singh Gulati of Old Village Overseas, New Delhi and Shri Sadh of KUM
Connections, New Delhi addressed and interacted with the participants.
2. Seminar at Gadag on 25.06.2015
HEPC under MDA Scheme of Ministry of Commerce & Industry organized seminar on “Strategies
to promote Handloom Export” at Nekar Bhavan, KSSIDC Industrial Area, Narasapur, Betageri-
Gadag on June 25, 2015. The primary objective of organising the seminar was to create
awareness among the weavers, master weavers about “Design Trends in Export Market” and
“Product diversification strategy for Handloom Sector” and facilitating them to understand the
challenges of Handloom sector in order to chalk out strategies to overcome them. Smt. Shipra
Roy, Assistant Professor, National Institute of Fashion Technology, Bangalore, Shri Jawahar Lal
Kunsoth, Deputy Director, Weavers’ Service Centre, Bangalore and Shri M.R. Itagi, Scientist C,
Central Silk Board, Dharwar addressed and interacted with the participants.
3. Seminar at Calicut on 27.06.2015
A workshop on “EXPORT AWARENESS” was organized at Kozhikode (Calicut) on June 27, 2015.
The event was organized with financial assistance from the Department of Commerce, Govt.
of India under the Marketing Development Assistance (MDA) Scheme. Shri S.Sasikumar, Joint
Director General Foreign Trade (Jt.DGFT), Madurai, Shri M.Krishnakumar, Associate Professor,
National Institute of Fashion Technology (NIFT), Kannur, Shri Abdul Rasheed, Senior Manager,
District Industries Centre, Kozhikode, Shri C.Jayachandran (of M/s Mascot Industries), a leading
exporter from Kannur and Shri N.Sreedharan (of M/s CDE) of Icon Handloom cluster, Kannur
addressed and interacted with the participants.
4. National Handloom Day Celebration on 07.08.2015
The 1st National Handloom Day event was organized by the Ministry of Textiles on 07.08.2015
and it was launched by the Prime Minister at Centenary Auditorium in Madras University,
Chennai. National Handloom Day is observed to generate awareness about the importance
of handloom industry as part of our rich heritage and culture, promote handloom products and
lead to increase in income for the weavers as well as enhancing their confidence and pride. On
this occasion, Prime Minister also launched the India Handloom Brand, which is an endorsement
to the quality of handloom products. The Sant Kabir Awards and National Awards for the
years 2012, 2013 and 2014 were also conferred to outstanding weavers who carry on the
tradition and have made valuable contribution to the development of the handloom sector.
HEPC assisted the Ministry of Textiles in organizing the event.
 2015 - 2016 47th Annual Report 19
5. Seminar at Karur on 07.09.2015 and Panipat on 10.09.2015
Council in association with Japan India Industry Promotion Association (JIIPA) organized a
Seminar / workshop on “Fashion Forecast for Japanese Market” at Karur on 07-09-15 and at
Panipat on 10.09.2015. Shri Gagan Rai, Chairman, HEPC delivered the key note address at
Panipat. Shri P.Gopalakrishnan, Past Chairman and Executive Committee Member of the Council
delivered welcome address at Karur.
The following delegates from Japan India Industry Promotion Association (JIIPA) participated in
the event and made presentation about Japanese market trends.
1. Shri Yasui Shigemaro, Chairman, JIIPA
2. Shri Koji Shimada, Asia Development producer
3. Shri Seiji Inoue, Designer
4. Shri Yoji Sugita, Consultant
5. Shri Prashant Godghate, Secretary General, JIIPA
6. Seminar at Karur on 12.10.2015
HEPC organised a seminar on “Heimtextil 2016 color trends & Visual Merchandising” at
Karur on 12-10-15 to provide information about the product development for the season
ahead particularly with a specific focus to Heimtextil 2016 and its presentation during the fair
through an effective visual merchandising process. A presentation on Heimtextil 2016 color
trends was made by Shri B.Karthikeyan, Associate Professor, NIFT, Chennai. Dr. M.Vasantha,
Associate Professor, NIFT, Chennai made a presentation on “Visual Merchandising” with a focus
on importance on WHAT to present, HOW to present and WHERE to present . Further, visuals
of Dos and DONTs at exhibition with a focus on Lightings, Props etc were presented for the
participants to provide input on booth presentation during fair participation.
7. Seminar at Kannur on 20.11.2015
Council, under MDA scheme of Department of Commerce, Ministry of Commerce & Industry,
Govt. of India, organized a Seminar at Kannur on “Heimtextil 2016 Color Trends & Visual
Merchandising” on 20.11.15 to sensitize the Handloom industry about the intricacies involved
in export trade.
The seminar was chaired by Shri D.Paul, Assistant Commissioner, Custom House Cochin, Shri
Shabaridas, President and Shri Divakaran, Vice President, of Kerala Textile Export Organization.
Shri B.Karthikeyan, Associate Prof, NIFT, Chennai, made a presentation on Colour/fashion
trends received from the fair authorities. Smt. M.Vasantha, Associate Prof, NIFT, Chennai, made
a presentation on Visual Merchandising at the seminar.
8. Seminar at Panipat on 02.12.2015
Council, under MDA scheme of Department of Commerce, Ministry of Commerce & Industry,
Govt. of India, organized a Seminar at Panipat on “Heimtextil 2016 Color Trends & Visual
Merchandising” on 02.12.2015 at hotel Le Gem, Panipat to sensitize the Handloom industry
about the intricacies involved in export trade.
The Seminar was chaired by Shri C.K.Mishra, Dy.DGFT, Panipat and co chaired by Shri Vinod
Dhamija, Shri Suresh Tayal, Ex-Executive Committee Members, HEPC & Shri Ramesh Verma,
 20 47th Annual Report 2015 - 2016
President, Haryana Handloom Manufacturers and Exporters Association (HEMA). The chief
guest Shri C.K. Mishra, ITS, Dy.DGFT made a power point presentation on Foreign Trade Policy
2015-16 and export incentives. Prof.Kripal Mathur, NIFT and Prof.Savita Sheoran Rana, NIFT
have jointly made a power point presentation on “Color Trends and Forecast Heimtextil 2016
and Visual Merchandising”.
9. Saarang 2016 – 6-10 January 2016
Council coordinated the event for promotion of India Handloom Brand by co-sponsoring a
Fashion Show at IIT Madras as part of the Institute’s annual inter-collegiate cultural event called
“Saarang 2016” held during 6-10 January 2016 to promote usage of handloom products
among college students. Financial assistance from the office of the Development Commissioner
(Handlooms), Ministry of Textiles, Govt. of India was availed for this co-sponsorship.
10. Block level cluster study
Council has undertaken study on block level handloom clusters at Karur, Kannur, Chennimalai,
Sirumugai and Hyderabad to identify exportable products during January 2016. Based on
study, it is proposed to organize awareness seminars on export and establish link with merchant
exporters.
11. Make in India Week
The Make in India Week was organised by the Govt. of India at Mumbai from 13-18 February,
2016. Prime Minister of India, Shri Narendra Modi inaugurated the “Make in India Week”.
Prime Minister of Sweden, Finland, and Lithuania and Deputy PM of Poland, were present for
the inauguration. Around 8,000 Indian industry leaders and 13 Union Ministers also attended
the inauguration ceremony.
Council was allotted a booth in Hall earmarked for Textiles, Culture, Skill Development and
Entrepreneurship. Handloom products of Home Textiles, Stoles and Scarves and Floor coverings
collected from member exporters were displayed. About 40 business visitors including NRIs,
Designers, and Manufacturers/Exporters visited HEPC stall and all showed interest in the
products displayed at HEPC booth. Shri Santosh Kumar Gangwar, Minister of State for Textiles
(Independent Charge) along with Smt.Rashmi Verma, Secretary (Textiles), Ministry of Textiles,
Govt. of India visited HEPC booth.
12. Seminar at Chennai on 10.03.2016
Council organized two seminars on 10.03.2016 at Chennai Trade Centre, Chennai during IIHF
2016 held from 9-11 March 2016.
The Chief Guest of the seminars was Shri Harmander Singh, Principal Secretary to Government,
Handlooms, Handicrafts, Textiles and Khadi Department, Govt. of Tamilnadu. Smt. Julia
Raat from Australia made presentation on Trends in Australia for India Handloom – with the
Sizzle at 4.30 pm and Shri Koji Shimada from Japan made presentation on Colour Forecast
on Hometextiles in Japanese market. Both the seminars were attended by the overseas buyers
and exhibitors of IIHF 2016. They opined that the seminars were helpful in understanding the
design & market trend in Australia and Japanese markets.
 2015 - 2016 47th Annual Report 21
13. Seminar at Varanasi on 28.03.2016
Council under Marketing Development Assistance Scheme (MDA) organized a Seminar “Design
Trends in Export Market & Product Diversification Strategy” for Handloom Sector at Varanasi
on 28.03.2016.
The Seminar was chaired by Shri Amit Kumar, Dy. DGFT, Varanasi & co- chaired by Shri Rajiv
Agrawal, Executive Committee Member, HEPC, Shri Mukund Agrawal, President, Eastern Uttar
Pradesh Exporters Association (EUPEA) & Shri S.Bandyopadhya, Dy. Director, WSC, Varanasi.
Prof. Kripal Mathur, NIFT and Prof. Savita Sheoran Rana, NIFT jointly made a power point
presentation on “Color Trends and Forecast and Visual Merchandising” and briefed about
international colour forecasts, key areas of focus. Shri S.Bandyopadhya, Dy. Director, WSC
made power point presentation on India Handloom Brand and explained the procedure,
importance & benefits of registration under India Handloom Brand.
14. Seminar at Bhubaneswar 28.03.2016
Council under Marketing Development Assistance Scheme (MDA) organized seminar on
Design Trends in Export Market & Product Diversification Strategy for Handloom Sector” at
Bhubaneswar, Odisha on 28.03.2016.
The Chief guest, Shri Gobinda Chandra Biswal, Director of Textiles & Handlooms, Govt. of
Odisha delivered the welcome address and the following topics were presented at the seminar:
a. “New Design Development in Handloom fabrics for Export Market” by Shri Padmacharan
Mahji, Textile Designer, NIFT, Bhubaneswar
b. “India Handloom Brand -Benefits and Procedures” by Shri S.K. Patra, Deputy Director,
Weavers Service Centre, Bhubaneswar.
c. “NHDC and its Services to Handloom Industry” by Shri B.R. Das, Manager, NHDC,
Bhubaneswar
d. “Handloom Export Trends” by Shri P. Rangasamy, Export Promotion Officer, HEPC
15. Seminar at Srinagar on 31.03.2016
Council under MDA scheme of Department of Commerce, Ministry of Commerce & Industry,
Govt. of India organized Seminar on “Design Trends in Export Market & Product Diversification
Strategy for Handloom Sector” on 31.03.2016 at Srinagar.
The Chief guest Shri Bashir Ahmad Wani, KAS, Joint Director, JK Handloom Department
delivered key note address. He said that around 50000 weavers are registered with the
department and there are about 550 cooperative societies in Kashmir out of which 380 are
functional. 10 Handloom development clusters are being run by the department under various
centrally sponsored schemes. Prof. Ravi Joshi, National Institute of Fashion Technology made
presentation on “Color Trends and Visual Merchandising”. Shri Tahir Ahmad Hakim, Assistant
Director, WSC, Srinagar briefed about procedures & benefits of India Handloom Brand. Shri
Qamar Ajaz, Foreign Trade Development Officer, O/o. Jt. DGFT, Srinagar briefed about IEC
and various schemes, procedure & benefits under FTP to Handloom Sector.
 22 47th Annual Report 2015 - 2016
INDEPENDENT AUDITOR’S REPORT

To the Members of HANDLOOM EXPORT PROMOTION COUNCIL

REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of HANDLOOM EXPORT
PROMOTION COUNCIL (“the Company”) which comprises the Balance Sheet as at March 31,
2016, the relatedIncome and Expenditure Account for the year then ended, and a summary of
significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position, financial performance of the
Company 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. This responsibility also includes 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 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
Our responsibility is to express an opinion on these standalone financial statements based on
our audit.
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 madethereunder.
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.
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
 2015 - 2016 47th Annual Report 23
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company’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, but not for the purpose of expressing an opinion on whether the Company
has in place an adequate internal financial controls system over financial reporting and the
operating effectiveness of such controls. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the accounting estimates made by the
Company’s Directors, as well as evaluating the overall presentation of the financialstatements.
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.
OPINION
In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid standalone 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 Company as at March 31, 2016, and
its Income over Expenditure for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), as amended,
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, the matters specified in paragraphs 3 and 4 of the Order are not applicable
2. 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 Company
so far as it appears from our examination of those books;
c. the Balance Sheet, the related Income and Expenditure Account dealt with by this Report
are in agreement with the books of account
d. in our opinion, the aforesaid standalone financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules,2014.
e. On the basis of written representations received from the directors as on March 31, 2016
taken on record by the Board of Directors, none of the directors is disqualified as on March
31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of
the Company and the operating effectiveness of such controls, refer to our separate Report
 24 47th Annual Report 2015 - 2016
in “AnnexureA”.
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, in our opinion and to the best
of our information and according to the explanations given tous:
i. The Company has disclosed the impact of pending litigations on its financial position
in its financial statements under Item on Provision Contingent Liability and Contingent
Assets in the notes to accounts.
ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.
iv.
sd/-
CA.G.Ananthan For and on behalf of
Partner R. Gopalakrishnan & Co
ICAI MemNo : 021916 Chartered Accountants
FRN No : 000972S

Place: CHENNAI
Date:07.08.2016
 2015 - 2016 47th Annual Report 25
“Annexure A”
TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF HANDLOOM EXPORT PROMOTION COUNCIL
REPORTON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013
(“THE ACT”)
We have audited the internal financial controls over financial reporting of HANDLOOM EXPORT
PROMOTION COUNCIL (“the Company”) as of March 31, 2016 in conjunction with our audit of
the standalone financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting criteria established by the entity,
considering the essential components of internal control stated in the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over
financial reporting based on our audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”)
and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by the
Institute of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
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 the assessed risk. The procedures selected depend on the auditor’s judgment, including
 26 47th Annual Report 2015 - 2016
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the Company’s internal financial controls system over financial
reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company’s internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal financial control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over financial reporting, including
the possibility of collusion or improper management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also, projections of any evaluation of
the internal financial controls over financial reporting to future periods are subject to the risk
that the internal financial control over financial reporting may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting
were operating effectively as at March 31, 2016, based on the internal control over financial
reporting criteria established by the Company considering the essential components of internal
control stated in the Guidance Note.
sd/-
CA.G.Ananthan For and on behalf of
Partner R. Gopalakrishnan& Co
ICAI MemNo : 021916 Chartered Accountants
FRN No : 000972S
Place:CHENNAI
Date:07.08.2016
2015 - 2016 47th Annual Report 27
HANDLOOM EXPORT PROMOTION COUNCIL
PART I - BALANCE SHEET AS AT 31ST MARCH 2016
(In Rupees)

FIGURES AS AT FIGURES AS AT
THE END OF THE END OF
NOTE
S. No. PARTICULARS CURRENT PREVIOUS
NO.
REPORTING REPORTING
PERIOD 31ST PERIOD 31ST
MARCH 2016 MARCH 2015

I EQUITY AND LIABILITIES

1 SHAREHOLDERS FUNDS
(a) SHARE CAPITAL A NIL NIL
(b) RESERVES AND SURPLUS B 115,407,621 109,792,605
(c) MONEY REC. AGST. SHARE
NIL NIL
WARRANTS
TOTAL(1) 115,407,621 109,792,605
2 SHARE APPLICATION MONEY PENDING NIL NIL
ALLOTMENT
3 NON-CURRENT LIABILITIES
(a) LONG TERM BORROWINGS NIL NIL
(b) DEFERRED TAX LIABILITIES (NET) NIL NIL
(c) OTHER LONG-TERM LIABILITIES C 1,722,268 1,722,268
(d) LONG-TERM PROVISIONS D NIL NIL
TOTAL(3) 1,722,268 1,722,268
4 CURRENT LIABILITIES
(a) SHORT TERM BORROWINGS E NIL NIL
(b) TRADE PAYABLES 12,231,885 7,984,645
(c) OTHER CURRENT LIABILITIES F 4,786,382 16,128,152
(d) SHORT TERM PROVISIONS G 5,942,065 4,814,723
TOTAL(4) 22,960,332 28,927,520
TOTAL(1+2+3+4) 140,090,221 140,442,393
II ASSETS
1 NON-CURRENT ASSETS
(a) FIXED ASSETS H
(i) TANGIBLE ASSETS 61,452,071 67,429,251
(ii) INTANGIBLE ASSETS NIL NIL
(iii) CAPITAL WORK-IN-PROGRESS NIL NIL
(iv) INTANGIBLE ASSETS UNDER DEV. NIL NIL
(b) NON-CURRENT INVESTMENTS NIL NIL
(c) DEFERRED TAX ASSETS (NET) NIL NIL
(d) LONG-TERM LOANS AND ADVANCES I 204,847 114,774
 28 47th Annual Report 2015 - 2016
(In Rupees)
FIGURES AS AT FIGURES AS AT
THE END OF THE END OF
NOTE
S. No. PARTICULARS CURRENT PREVIOUS
NO.
REPORTING REPORTING
PERIOD 31ST PERIOD 31ST
MARCH 2016 MARCH 2015
(e) OTHER NON-CURRENT ASSETS J NIL NIL
TOTAL(1) 61,656,918 67,544,025
2 CURRENT ASSETS
(a) CURRENT INVESTMENTS K NIL NIL
(b) INVENTORIES L 395,377 395,377
(c)TRADE RECEIVABLES M NIL NIL
(d) CASH AND CASH EQUIVALENTS N 34,730,782 47,903,046
(e) SHORT-TERM LOANS AND ADVANCES O 8,705,479 8,830,933
(f) OTHER CURRENT ASSETS P 34,601,665 15,769,012
TOTAL(2) 78,433,303 72,898,368
TOTAL(1+2) 140,090,221 140,442,393
The accompanying notes are integral part of the financial statements

As per our report of even date

For R Gopalakrishnan & Co. FOR HANDLOOM EXPORT PROMOTION COUNCIL
Firm Regn.NO: 000972S
Chartered Accountants

sd/- sd/- sd/- sd/-

G ANANTHAN (R ANAND) ( V KUMAR) (K N PRABHU)
Partner EXECUTIVE CHAIRMAN VICE
Membership No: 021916 DIRECTOR CHAIRMAN

PLACE: CHENNAI

DATED: 7/8/2016
2015 - 2016 47th Annual Report 29
HANDLOOM EXPORT PROMOTION COUNCIL
NOTES TO AND FORMING PART OF BALANCE SHEET AS AT 31ST MARCH 2016
(IN RUPEES)

FIGURES AS AT THE FIGURES AS AT THE

NOTE PARTICULARS END OF END OF
S.N
NO. CURRENT REPORTING PREVIOUS REPORTING
PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015

A SHARE CAPITAL:
(1)AUTHORISED:
NIL NIL

(2)ISSUED, SUBSCRIBED& PAID UP

NIL NIL

NIL NIL

B RESERVE & SURPLUS:

1 OTHER RESERVES
Opening Balance 109,792,605 107,368,233
Additions during the Year 5,615,016 2,424,372
Utilizations during the year -

GRAND TOTAL 115,407,621 109,792,605

Notes:
No Reserve specifically earmarked for
investments

C OTHER LONG-TERM LIABILITIES:

HEZ- THIRUVANNAMALAI 1,156,716 1,156,716
DUE TO GOVT-SPECIAL ASSISTANCE 565,552 565,552
FOR EXPORTS
RENT ADVANCE - -

1,722,268 1,722,268

D LONG-TERM PROVISIONS: NIL NIL

NIL NIL

CURRENT LIABILITIES
E SHORT-TERM BORROWINGS: NIL NIL

TRADE PAYABLES
SUNDRY CREDITORS 12,231,885 7,984,645
12,231,885 7,984,645
30 47th Annual Report 2015 - 2016
(IN RUPEES)
FIGURES AS AT THE FIGURES AS AT THE
NOTE PARTICULARS END OF END OF
S.N
NO. CURRENT REPORTING PREVIOUS REPORTING
PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015
F OTHER CURRENT LIABILITIES
1 CURRENT MATURITIES OF LONG TERM DEBTS NIL NIL
INTEREST ACCRUED BUT NOT DUE ON
2 NIL NIL
BORROWINGS
INTEREST ACCRUED AND DUE ON
3 NIL NIL
BORROWINGS
4 UNPAID DIVIDENDS NIL NIL
5 TDS PAYABLE 147,603 64,248
CURRENT YEAR TAXES PAYABLE(NET OF
6 NIL NIL
ADVANCE TAX)
7 INCOME RECEIVED IN ADVANCE
-MEMBERSHIP FEES 107,000 242,000
-PARTICIPATION FEES -MDA 2,960,200 10,038,910
-PARTICIPATION FEES -DCH 50,000 -
-GRANT RECEIVED IN ADVANCE - 3,200,000
8 GRANT PAYABLE-MDA 536,006 939,607

-GRANT PAYABLE TO EXPORTERS 400,000 1,058,314

9 SECURITY DEPOSIT 585,573 585,073
10 SUBSCRIPTION ADVANCE PAYABLE - -
4,786,382 16,128,152

G SHORT-TERM PROVISIONS
(a) PROVISIONS FOR EMPLOYEE BENEFITS 5,942,065 4,814,723
(b) PROVISIONS RENT PAYABLE - -

5,942,065 4,814,723

H (a) FIXED ASSETS 61,452,071 67,429,251

I a LONG TERM LOANS AND ADVANCES:

SECURITY DEPOSITS - RENT ADVANCE 204,847 114,774

204,847 114,774

CURRENT ASSETS
K (a) CURRENT INVESTMENTS NIL NIL

NIL NIL
L (b) INVENTORIES:
1 RAW MATERIALS; NIL NIL
2 WORK IN PROCESS; NIL NIL
3 FINISHED GOODS; NIL NIL
4 STOCK IN TRADE(IN RESPECT OF GOODS NIL NIL
2015 - 2016 47th Annual Report 31
(IN RUPEES)
FIGURES AS AT THE FIGURES AS AT THE
NOTE PARTICULARS END OF END OF
S.N
NO. CURRENT REPORTING PREVIOUS REPORTING
PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015
ACQUIRED FOR TRADING );
5 STORES,SPARES & LOOSE TOOLS; NIL NIL
6 OTHERS;(STOCK OF BOOKS) 395,377 395,377

395,377 395,377

M a TRADE RECEIVABLES:
(1)DEBTS OUTSTANDING FOR A PERIOD
NIL NIL
EXCEEDING
SIX MONTHS FROM THE DATE THEY ARE DUE
(2)OTHER DEBTS NIL NIL

NIL NIL

N b CASH & CASH EQUIVALENTS :

(a) BALANCE WITH BANKS
IN FIXED DEPOSITS
EARMARKED BALANCES WITH BANKS 565,552 565,552
HELD AS MARGIN MONEY AGAINST
NIL NIL
BORROWINGS,
AND OTHER COMMITMENTS. NIL NIL
MATURITY WITH MORE THAN 12 MONTHS NIL NIL
OTHERS- FIXED DEPOSITS 25,274,183 4,709,633
IN CURRENT ACCOUNTS: 5,730,135 15,901,333
SAVINGS ACCOUNTS 3,154,496 26,718,662

( b )CASH ON HAND 6,417 7,867

34,730,782 47,903,046

O (e) SHORT TERM LOANS & ADVANCES:

ADVANCES RECOVERABLE IN CASH OR
IN KIND FOR THE VALUE TO BE RECEIVED
(1)ADVANCE TO PARTIES 1,964,082 3,601,139
(2) RECIEVABLE FROM REVENUE AUTHORITIES 5,032,310 4,502,300
3 Pre Deposit - Service Tax Appeal 1,587,722 -
(4) RENT RECEIVABLE 121,365 727,494
8,705,479 8,830,933

P (f) OTHER CURRENT ASSETS:

GRANT RECEIVABLE - FAIR PARTICIPATION 33,320,311 15,676,403
INTEREST ACCRUED ON INVESTMENTS 1,156,952 92,609
PREPAID EXPENSES 124,402 -
34,601,665 15,769,012
 32 47th Annual Report 2015 - 2016
(IN RUPEES)
FIGURES AS AT THE FIGURES AS AT THE
NOTE PARTICULARS END OF END OF
S.N
NO. CURRENT REPORTING PREVIOUS REPORTING
PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015
Q CONTINGENT LIABILITIES AND COMMITMENTS
(TO THE EXTENT NOT PROVIDED FOR) 118,373,600 69,946,499
i CONTINGENT LIABILITIES
(a) CLAIM AGAINST THE COMPANY NOT
NIL NIL
ACNOWLEDGED
AS DEBTS;
(b) GUARANTEES; NIL NIL
© OTHER MONEY FOR WHICH THE COMPANY IS
CONTINGENTLY LIABLE.
ii COMMITMENTS
(a) ESTIMATED AMOUNT OF CONTRACTS
NIL NIL
REMAINING
TO BE EXECUTED ON CAPITAL ACCOUNT AND
NOT
PROVIDED FOR;
(b) UNCALLED LIABILITY ON SHARES AND OTHER NIL NIL
INVESTMENTS PARTLY PAID;
(c) OTHER COMMITMENTS NIL NIL
THE AMOUNT OF DIVIDENDS
PROPOSED TO BE DISTRIBUTED
R
TO EQUITY AND PREFERENCE
SHAREHOLDERS FOR THE PERIOD
AMOUNT PER EQUITY SHARE NA NA
S ISSUE OF SECURITIES FOR SPECIFIC PURPOSE NA NA
DETAIL OF ANY ASSETS OTHER THAN FIXED
T NA NA
ASSETS AND NON-
CURRENT INVESTMENTS WHICH DO NOT HAVE
A VALUE ON
REALISATION IN THE ORDINARY COURSE OF
BUSINESS AT LEAST
EQUAL TO THE AMOUNT AT WHICH THEY ARE
STATED.

As per our report of even date

For R Gopalakrishnan & Co. FOR HANDLOOM EXPORT PROMOTION COUNCIL

Firm Regn No. 000972S

Chartered Accountants
sd/- sd/- sd/- sd/-
G ANANTHAN (R ANAND) (V KUMAR) (K N PRABHU)
CHARTERED ACCOUNTANTS EXECUTIVE CHAIRMAN VICE
Membership No: 021916 DIRECTOR CHAIRMAN

PLACE: CHENNAI
DATE : 07/8/2016
 SCHEDULE FOR FIXED ASSETS FOR THE FINANCIAL YEAR 2015-16
Net Block Depreciation Net Block
As at Additions Deletion As at Depn Upto As at As at
Particulars 01.04.2015 For the Year 31.03.2016 for the year additions Deletions 31.03.2016 31.03.2016 31.03.2015
2015 - 2016

Land 2980144.00 - - 2980144.00 - - - - 2980144.00 2980144.00

Fax 2609.00 - - 2609.00 1176.00 - - 1176.00t 1433.00 2609.00
Furniture 4035672.00 - - 4035672.00 1044835.00 - - 1044835.00 2990837.00 4035672.00
Stabilizer 1782.00 - - 1782.00 461.00 - - 461.00 1321.00 1782.00
Airconditiner 1557008.00 318910.00 - 1875918.00 216580.00 42416.00 - 258996.00 1616922.00 1557008.00
Computer 7518.00 92600.00 - 100118.00 4748.00 30105.00 - 34853.00 65265.00 7518.00
Cell Phone 30498.00 14500.00 - 44998.00 19263.00 1143.00 - 20406.00 24592.00 30498.00
Fan 16608.00 - - 16608.00 4300.00 - - 4300.00 12308.00 16608.00
Office Equipments 80218.00 227379.00 - 307597.00 36154.00 85530.00 - 121684.00 185913.00 80218.00
Generator 911367.00 - - 911367.00 126771.00 - - 126771.00 784596.00 911367.00
Motor Car 455666.00 - - 455666.00 142304.00 - - 142304.00 313362.00 455666.00
20 Kva Ups 284513.00 - - 284513.00 128230.00 - - 128230.00 156283.00 284513.00
M V Panel 323310.00 - - 323310.00 145716.00 - - 145716.00 177594.00 323310.00
Elecatrical Equipments 1757130.00 - - 1757130.00 454921.00 - - 454921.00 1302209.00 1757130.00
Building 54502889.00 1336815.00 - 55839704.00 5177774.00 348.00 - 5178122.00 50661582.00 54502889.00
Computerisation 482281.00 482281.00 304609.00 304609.00 177672.00 482281.00
Total 67429213.00 1990204.00 69419417.00 7807842.00 159542.00 7967384.00 61452033.00 67429213.00

Assets Carried at Residual Value

Net Block Depreciation Net Block
As at Additions deletion As at Depn upto As at As at
47th Annual Report

Particulars 01.04.2015 for the year 31.03.2016 for the year Additions Deletions 31.03.2016 31.03.2016 31.03.2015
Furniture 3.00 - - 3.00 - - - - 3.00 3.00
Weighing Machine (at Resi) 35.00 - - 35.00 - - - - 35.00 35.00
Total 38.00 38.00 38.00 38.00
33
 34 47th Annual Report 2015 - 2016
PART II - STATEMENT OF INCOME AND EXPENDITURE
HANDLOOM EXPORT PROMOTION COUNCIL
INCOME AND EXPENDITURE STATEMENT 31ST MARCH 2016
(RUPEES IN)

FIGURES FOR FIGURES FOR

PARTICULARS THE THE
S. No NOTE CURRENT PREVIOUS
NO. REPORTING REPORTING
PERIOD 31ST PERIOD 31ST
MARCH 2016 MARCH 2015

REVENUE FROM OPERATIONS

I REVENUE FROM OPERATIONS 1 83,713,670 73,539,962
II OTHER INCOME 2 10,972,596 7,295,535
III TOTAL REVENUE(I+II) 94,686,266 80,835,497
IV EXPENSES:

a EMPLOYEE BENEFITS EXPENSES 3 17,500,325 15,260,500

b FINANCE COSTS 4 14,056 15,991
DEPRECIATION AND AMORTIZATION
c 5 7,967,384 10,379,622
EXPENSE
d OTHER EXPENSES 6 63,589,484 52,755,012
TOTAL EXPENSES 89,071,249 78,411,125

V INCOME OVER EXPENDITURE 7 5,615,016 2,424,372

5,615,016 2,424,372

R Gopalakrishnan& Co. FOR HANDLOOM EXPORT PROMOTION COUNCIL

Firm No.00972S
Chartered Accountants

sd/- sd/- sd/- sd/-

G ANANTHAN (R ANAND) ( V KUMAR) (K N PRABHU)
Partner EXECUTIVE CHAIRMAN VICE
Membership No: 021916 DIRECTOR CHAIRMAN

PLACE: CHENNAI
DATE: 07.08.2016
2015 - 2016 47th Annual Report 35
HANDLOOM EXPORT PROMOTION COUNCIL
NOTES TO AND FORMING PART OF STATEMENT OF INCOME AND EXPENDIITURE FOR THE
YEAR ENDED 31ST MARCH 2016

FIGURES FOR THE FIGURES FOR THE

NOTE CURRENT REPORTING PREVIOUS REPORTING
PARTICULARS
NO. PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015
1a REVENUE FROM OPERATIONS
-Membership Fees 8,190,000 7,118,000
-Participation Fees 68,070,556 58,760,250
GRANT TO EXPORTERS
-NHDP SCHEMES 3,453,114 3,661,712
-MDA SCHEMES 4,000,000 4,000,000

83,713,670 73,539,962
NET REVENUE FROM OPERATIONS 83,713,670 73,539,962

2b OTHER INCOME
Interest income on
Fixed Deposits 1,902,924 659,003
Saving Bank Accounts 624,207 1,141,197
Other Non Operating Income 3,861,957 2,644,028
RENT 4,583,508 2,851,307

10,972,596 7,295,535
Notes;
Other Non Operating Income includes
a advertisement charges Rs 15,695
b.Subscription to newsletter,Internet enquiry club
Rs.21,72,000
c. Amenity charges & Maintenace - Rs.4,18,792
d application fee & service charges Rs.1,68,734
e. Excess grant of previous year now
transferred- Rs.847941
3 EMPLOYEE BENEFITS EXPENSE
SALARY AND WAGES
OFFICE STAFF SALARY 14,727,898 12,617,729
DIRECTOR REMUNERATION NIL NIL
CONTRIBUTION TO PROVIDENT AND
OTHER FUNDS
CONTRIBUTION TO PROVIDENT FUND 1,166,495 1,163,088
CONTRIBUTION TO EMPLOYEES STATE INS.FUND NIL NIL
CONTRIBUTION TO OTHER FUNDS- GRATUITY 1,101,169 1,008,239
36 47th Annual Report 2015 - 2016

FIGURES FOR THE FIGURES FOR THE

NOTE CURRENT REPORTING PREVIOUS REPORTING
PARTICULARS
NO. PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015

OTHER EXPENSES
WORKERS AND STAFF WELFARE 126,709 147,640
BONUS 378,054 323,804

17,500,325 15,260,500

4 FINANCIAL COSTS:
a INTEREST EXPENSE
BANK CHARGES 14,056 15,991
INTEREST TO PARTIES/DISTRIBUTORS(NET) NIL NIL
INTEREST TO DEPOSITORS NIL NIL
INTEREST TO BANK ON VEHICLE LOAN NIL NIL
INTERST ON TDS & OTHER TAXES NIL NIL
b OTHER BORROWING COSTS NIL NIL
c APPLICABLE NET GAIN/LOSS ON FOREIGN NIL NIL
CURRENCY TRANSACTIONS AND TRANSLATIONS

14,056 15,991

DEPRECIATION AND AMORTZATION

5
EXPENSES:
DEPRECIATION 7,967,384 9,969,541
ADDITIONAL DEPRECIATION
- 410,081

7,967,384 10,379,622

6 OTHER EXPENSES:
A ADMINISTRATIVE EXPENSE
CAR EXPENSES 363,888 180,354
FESTIVAL CELEBERATION EXPENSES 23,454 23,162
SUBSCRIPTION/MEMBERSHIP FEES 17,641 18,259
ELECTRICITY EXPENSES (OFFICE) 580,284 462,052
ENTERTAINMENT EXP. 287,041 618,568
RATES & TAXES, OTHER FEES, INSURANCE 287,595 64,237
GENERAL EXPENSES 468,262 485,240
2015 - 2016 47th Annual Report 37

FIGURES FOR THE FIGURES FOR THE

NOTE CURRENT REPORTING PREVIOUS REPORTING
PARTICULARS
NO. PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015

LEGAL EXPENSES 140,576 74,150

NEWS PAPER & PERIODICALS 86,079 7,251

PAYMENT TO THE AUDITORS 80,500 62,800

POSTAGE & COURIER EXP. 402,187 314,286
PRINTING & STATIONERY 953,325 1,088,003
REPAIR TO BUILDINGS & MAINTENANCE 511,952 390,790
NHDP SCHEMES- EXHIBITIONS 33,987,882 27,023,656
-
LESS: GRANT UTILIZED - EXHIBITIONS 22,463,919 11,523,963 20,567,513 6,456,143

CHDS SCHEMES- FAIR & NHDP- THEME

6,776,196 2,722,963
PAVILLION& FASHION SHOW
LESS: GRANT UTILIZED- PROJECTS 5,556,554 1,219,642 2,579,640 143,323

MAI SCHEMES- EXHIBITIONS 64,836,625 58,505,396

LESS; GRANT UTILIZED - EXHIBITIONS 36,069,417 28,767,208 34,175,182 24,330,214

MDA SCHEMES-EXHIBITIONS 8,207,382 6,498,240

LESS: GRANT UTILIZED- EXHIBITIONS 4,200,000 4,007,382 1,872,059 4,626,181
DOMOTEX HANNOVER 1,158,130 936,025
-ADVERTISEMENT IN ABROAD 1,196,578 789,750
LESS: GRANT UTILIZED - ADVT. ABROAD 717,947 478,631 473,850 315,900

-WORKS SHOP SEMINAR 1,410,078 1,190,807

LESS: GRANT UTILIZED - WORKSHOP/SEMINAR 846,047 564,031 714,484 476,323
IHGF (SPRING) 596,429
-MEMBERS EXPORT GRANT 4,000,000 4,000,000
OFFICE AUTOMATION 668,093
NATIONAL HANDLOOM DAY 434,862 -
-TRAVEL GRANT TO EXPORTERS 3,453,114 3,661,712
REPAIR & MAINTENANCE (GENERAL) - AMC 260,455 129,939
TELEPHONE EXP. 342,141 285,941
FLOOD RELIEF 130,000 -
CONFERENCE EXPENSES & TA to COMMITTEE MEMBERS 486,893 717,569
TRAVELLING EXPENSES TA to OFFICERS STAFF 744,605 360,376
HONORARIUM & SALARY TO CONTINGENT STAFF 551,121 348,390
SHORT PAYMENT IN GRANTS - 2,162,947
ADVERTISEMENT CHARGES - 14,877
63,589,484 52,755,012
38 47th Annual Report 2015 - 2016

FIGURES FOR THE FIGURES FOR THE

NOTE CURRENT REPORTING PREVIOUS REPORTING
PARTICULARS
NO. PERIOD 31ST MARCH PERIOD 31ST MARCH
2016 2015

SELLING & DISTRIBUTION EXPENSE

ADVERTISEMENT EXPS. NIL NIL
ADVERTISEMENT ( MEDIA) NIL NIL

CONFERENCE EXPENSES NIL NIL

FREIGHT & CARTAGE(OUTWARD) NIL NIL
DR./CR. W/O NIL NIL
SALE COMMISSION & INCENTIVES NIL NIL
PENALTIES NIL NIL
TRAVELLING EXPENSES NIL NIL
MARKETING STAFF TOUR EXPENSES NIL NIL
NIL NIL

GRAND TOTAL 63,589,484 52,755,012

2015 - 2016 47th Annual Report 39
HANDLOOM EXPORT PROMOTION COUNCIL
ADDITIONAL INFORMATIONS TO AND FORMING PART OF STATEMENT OF INCOME AND
EXPENDITURE FOR THE YEAR ENDED 31ST MARCH 2016
FIGURES FOR FIGURES FOR
THE THE
NOTE CURRENT PREVIOUS
PARTICULARS
NO. REPORTING REPORTING
PERIOD 31ST PERIOD 31ST
MARCH 2016 MARCH 2015

PAYMENT TO THE AUDITORS AS

AUDITOR
FOR TAXATION MATTERS 46,000 30,000
FOR COMPANY LAW MATTERS
FOR MANAGEMENT SERVICES 23,000 22,800
FOR OTHER SERVICES 11,500 10,000
FOR REIMBURSEMENT OF EXPENSES
TOTAL 80,500 62,800
VALUE OF IMPORTS CALCULATED ON C.I.F BASIS BY
a
THE
COMPANY DURING THE FINANCIAL YEAR IN RESPECT
OF
I RAW MATERIALS; NIL NIL
II COMPONENRTS AND SPARE PARTS; NIL NIL
III CAPITAL GOODS; NIL NIL
TOTAL NIL NIL
b EXPENDITURE IN FOREIGHN CURRENCY DURING THE
FINANCIAL YEAR ON ACCOUNT OF NIL NIL
ROYALTY NIL NIL
KNOWHOW NIL NIL
PROFESSIONAL AND CONSULTATION FEES NIL NIL
INTEREST NIL NIL
FOREIGHN TREVELLING NIL NIL
FEES AND TAXES NIL NIL
OTHER PROMOTIONAL EXPENSES OF HANDLOOM
74,661,556 60,109,360
EXPORT
TOTAL 74,661,556 60,109,360
C BREAK UP OF CONSUMPTION
I RAW MATERIALS;
TOTAL CONSUMPTION NIL NIL
INDIGENOUS NIL NIL
40 47th Annual Report 2015 - 2016
FIGURES FOR FIGURES FOR
THE THE
NOTE CURRENT PREVIOUS
PARTICULARS
NO. REPORTING REPORTING
PERIOD 31ST PERIOD 31ST
MARCH 2016 MARCH 2015

VALUE NIL NIL

% OF TOTAL NIL NIL
IMPORTED NIL NIL
VALUE NIL NIL
% OF TOTAL NIL NIL
II SPARE PARTS AND COMPONENTS
TOTAL CONSUMPTION NIL NIL
INDIGENOUS NIL NIL
VALUE NIL NIL
% OF TOTAL NIL NIL
IMPORTED NIL NIL
VALUE NIL NIL
% OF TOTAL NIL NIL
D THE AMOUNT REMITTED DURING THE YEAR IN NIL NIL
FOREIGHN CURRENCIES ON ACCOUNT OF DIVIDENDS
E EARNING IN FOREIGHN EXCHANGE
I EXPORT OF GOODS ON FOB BASIS; NIL NIL
II ROYALTY,KNOWHOW,PROFESSIONAL AND NIL NIL
CONSULTANCY FEES;
III INTEREST AND DIVIDENDS; NIL NIL
IV OTHER INCOME; NIL NIL
PRIOR PERIOD EXPENDITURE NIL NIL
TOTAL - -
 2015 - 2016 47th Annual Report 41
HANDLOOM EXPORT PROMOTION COUNCIL
NOTES FORMING PART OF ACCOUNTS AS AT 31st MARCH 2016
NOTES ON ACCOUNTS
1. Significant Accounting Policies
System of Accounting: The financial statements are prepared under the historical cost
convention on accrual basis of accounting as per the provisions of the Companies Act, 1956 and
Accounting Principles accepted in India and the Companies (Accounting Standards) Rules, 2006.
Provisions, Contingent Liability and Contingent Asset: Provisions involving substantial degree
of estimation in measurement are recognized when there is a present obligation as a result of
past events and it is probable that there will be an outflow of resources.
a. Contingent Liability( Not provided in the books): The Income tax Department has raised
demands against the Council as follows.

Demand Amount Assessment year Appeal pending before

Commissioner of Income
Rs.1,34,63,453/- 2009-10 Tax Appeals.
Commissioner of Income
Rs.1,65,62,811/- 2010-11 Tax Appeals.
Commissioner of Income
Rs.2,22,35,150/- 2011-12 Tax Appeals.
Commissioner of Income
Rs.1,76,85,085/- 2012-13 Tax Appeals.
Commissioner of Income
Rs.2,69,57,480/- 2013-14 Tax Appeals.
b. Contingent liability (not provided in the books) : The Service tax department has raised
demand against the council as follows

Demand Amount Peroid Appeal pending before

Rs.1,58,01,541/- 1.10.2005-6.7.2009

Rs.48,85,480/- 2010-11
Service tax appellate
Rs.4,67,267/- 2011-12 tribunal.
Rs.15,333/- 2012-13

Rs.3,00,000/- Penalty

The Contingent Assets are neither recognized nor disclosed in the Financial Statements.
Revenue Recognition: The revenue from the members is recognized on enrollment.
 42 47th Annual Report 2015 - 2016
Fixed Assets: Fixed Asset is stated at cost less depreciation. Specific Grants related to specific
fixed assets are shown as a deduction from Gross value of the asset concerned, in arriving at
the book value. If the specific grant received is equals the whole or virtually the whole, cost of
the asset is shown at the nominal value.
With regard to New Asset only residual value taken as 5%.
With regard to old Asset No residual value is taken.
Depreciation: Depreciation for the year has been provided with reference to useful life of the
Assets as prescribed by the Companies Act 2013 . Hence the Wriiten Down Value inexcess has
been taken to Depreciation.
Government Grant: Grant is accounted to confirm AS-12 issued by ICAI, and accordingly the
grant is
a)Deducted in reporting the related expenses
b) Assets acquired out of grant are accounted net of specific grant received
Service Tax Payment: The Management is collecting service tax on Membership fees and
remitting to service tax department.
Retirement Benefit:
ι. All short term employee benefits are recognized at their undiscounted amount in
accounting period in which they are incurred.
ιι. Employee benefits under defined contribution plans comprising Provided Funds are
recognized based on the undiscounted obligation of the company to contribute to the plan. The
same is paid to a trust, administrated independently.
ιιι. Provision for Gratuity is made on accrual basis, as per the Payment of Gratuity act on
undiscounted basis.
2. Remuneration to Auditor:

Current year ended Previous year ended

Particulars
31.03.2016 31.03.2015
Statutory Auditors 46000 30000
Internal Auditors 23000 20225
PF Auditors 11500 10000
 2015 - 2016 47th Annual Report 43
3. Earning in Foreign Currency:

Current year ended Previous year ended

Particulars
31.03.2016 31.03.2015
i. Export of Goods / Services calculated
NIL NIL
on FOB Basis
ii. Royalty, know-how, professional and
NIL NIL
consultancy fees
iii. Interest and Dividend NIL NIL
iv. Other Income NIL NIL
4. Expenditure in Foreign Currency:

Current year ended Previous year

Particulars
31.03.2016 ended 31.03.2015
i. Royalty NIL NIL
ii. Know-how NIL NIL
iii. Professional Fees NIL NIL
iv. Consultancy Fees NIL NIL
v. Interest NIL NIL
vi. Other Promotional expenses of Handloom
Rs. 7,46,61,556/- Rs. 6,01,0936/-
export
vii. Amount remitted in foreign currency on
NIL NIL
account of dividend
5. Detail of Prior period adjustment:

Current year ended Previous year ended

Particulars
31.03.2016 31.03.2015
Income NIL NIL

Expenditure
Excess provision made on Grant NIL NIL
 44 47th Annual Report 2015 - 2016
6. Detail of Grant for the year 2015-16

Ministry of Textiles Ministry of

Commerce& Ministry of
Exhibitions Industry- MDA Commerce &
Particulars including Other Scheme code Industry–
Grant to Projects Activities&
exporters Assistance to MAI Schemes
Exporters
Grant Received 1,32,41,800 12, 50,000 1,03,00,000 2,45,67,238
Grant Receivable 1,67,31,787 7,50,000 - 1,15,02,179
Total Grant 2,99,73,587 20,00,000 1,03,00,000 3,60,69,417
Grant Utilized 2,99,73,587 15,00,000 97,63,994 3,60,69,417
Refunded Nil 5,00,000 - -
Closing balance NIL NIL 5,36,006 -
7. Details of Gratuity Fund

Opening balance 2015-16 2014-15

Opening balance 46,84,427.00 38,76,188.00
Less : transfer to Gratuity Fund Nil 2,00,000.00
Add: Provision for the year 11,01,169.00 10,08,239.00
Closing balance 57,85,596.00 46,84,427.00
8. Capital Commitment: Estimated amount of cost remaining to be executed on capital
account (net of advances) and not provided for, in the accounts Rs. Nil (previous year Rs. Nil).
9. Previous year figure have been regrouped to confirm current year classification.

For Handloom Export Promotion Council For R Gopalakrishan&CO.

(Chartered Accountants)
sd/- sd/- sd/- sd/-
( R Anand) ( V Kumar) (K N Prabhu) (G Ananthan)
Executive Director Chairman Vice Chairman Partner
 2015 - 2016 47th Annual Report 45
THE HANDLOOM EXPORT PROMOTION COUNCIL
No.34, Cathedral Garden Road, Nungambakkam, Chennai – 600 034.
PROXY

Registration Cum Membership Certificate (RCMC) No:……………......................……………….

State: ……………………………………………………….....................…………………………

I/We.....................................................................................................of......................................being a member of

the HEPC here by appoint……………..................…………......…………….……..of……....................…

………..…….or f a i l i n g h i m … … … . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ………..of…………............……………...as proxy to vote on my /

our behalf at the 4 7 t h Annual General Meeting of the Council to be held on the 12th dateof September

2016 and any adjournment thereof.

This proxy form is to be issued in favour of/against the Resolution No…………………………………...

unless otherwise instructed the proxy will vote as he thinks it.

Signed at this…………………………………………....……dateof………. .2016.

Affix
Revenue
Seal: Signature
Stamp

Note: The proxy must be lodged so as to reach the Registered Office of the Council not less than forty
eight hours (excluding holidays) before the time for holding the aforesaid meeting.

Instructions: All blanks must be filled up, including the RCMC No.
 46 47th Annual Report 2015 - 2016

“ADDENDUM TO THE MEETINGS OF THE COUNCIL”

c). Extraordinary General Meeting of The Council

30.01.2016 1st Extraordinary General Meeting

03.03.2016 2nd Extraordinary General Meeting
29.03.2016 3rd Extraordinary General Meeting
 2015 - 2016 47th Annual Report 47
THE HANDLOOM EXPORT PROMOTION COUNCIL
No.34, Cathedral Garden Road, Nungambakkam, Chennai – 600 034.
ATTENDANCE SLIP

Please complete the attendance slip and hand it over at the entrance of the meeting hall.
Name & Address of the member:..............................................................................................................
..........................................................................................................................................................................
..........................................................................................................................................................................
Membership No.
(to be filled in by Member/RTE/Authorised Representative/Proxy)
I certify that I am a Registered Member/RTE/Authorised Representative/Proxy for the
Registered Member/ RTE of the Council.
I hereby accord my presence, at the Forty Seventh Annual General Meeting of the Council to be
held on 12th september 2016 at 12.00 Noon at the Premises of the Council.
Signature (of the Registered Member/RTE/Authorised Representative/Proxy)