Hella India Lighting Unlisted Shares

Annual Report Summary

Together, Hella India Lighting Limited presents its 61st Annual Report for 2020-21, a year marked by the pandemic's challenges but also significant growth.

Financial Performance:

• Revenue: Increased from INR 17,262.82 million in FY2020 to INR 19,290.07 million in FY2021.
• Expenses: Increased to INR 19,313.07 million due to higher raw material and component costs, employee benefits, and finance costs.
• Profit Before Tax: INR 27.86 million, exceeding the previous year's INR 26.23 million.
• Profit After Tax: Reduced to INR 0.31 million compared to INR 19.09 million in the previous year, attributed to a considerable increase in net current tax, prior year tax expenses, and deferred taxes.
• Total Comprehensive Income/Loss: A loss of INR 0.98 million.
• Earnings Per Share: INR 0.10 (basic and diluted), down from INR 6.02 in FY20.
• Dividend: Due to the comprehensive loss, the Board did not recommend a dividend.

Business Operations and Strategy:

• Despite COVID-19 impacts, the company sustained momentum and increased revenue.
• Focus on building new associations and retaining customer trust.
• Optimistic outlook due to increasing content per vehicle from technological advancements and regulatory measures.
• Expectation that growth in the auto component industry will surpass the underlying automotive industry growth.

Key Developments & Initiatives:

• Launched new products in the aftermarket, including 2W headlamps and spark plugs, and brake pads and filter range extensions.
• Installed a 302 KW rooftop solar plant at the Derabassi plant for green energy.
• Installed a new Arzuffi Metallizer with triple the capacity of the previous one.
• First-time production of BMC Reflectors, PC Lenses, and 2K lenses in HIL.
• R&D efforts focused on LED-fication of rear lamps and single-function lamps.
• Acquired significant global business in LED technology.
• Developing LED Modular headlamp solutions for the Indian market.
• Plant upgradation project HIL 2.0 is fully operational with increased molding capacity.
• Lens coating and BMC coating are fully operational with robotic technology, approved by major OEMs.

Human Resources & Recognition:

• Human resource management emphasized through employee training.
• Leadership Team acknowledged as India's Best Leader in Times of Crisis by GPTW.
• Certified as a Great Place to Work-Certified™ company.
• Recognized among the top 50 Great Places to Work Companies for 2021 in the mid-size segment.

Road Safety Initiatives:

• Collaborated with NGO ClubD2S to address road deaths.
• Launched the #SafeSpeedChallenge, a National Road Safety Championship Challenge, flagged off by government ministers.
• An All-Women Team undertook a rally from Amritsar to Kanyakumari, demonstrating safe driving.

Board and Governance:

• Dr. Nicolas Wiedmann resigned; Mr. Anil Sultan ceased to be an alternate director.
• Mr. Ramashankar was re-appointed as Managing Director.
• Mr. Christoph Sohnchen was appointed as an Additional Director and will be proposed as a director in the AGM.
• The Board recommends the re-appointment of Mr. Tarun Gulati as Independent Director.
• The Board met four times during the year.
• Contracts with related parties were on arm's length basis.

Corporate Social Responsibility (CSR):

• CSR Committee formulated a CSR Policy.
• Company actively participated in CSR activities.

Statutory Matters:

• M/s S.N. Dhawan & CO LLP is recommended as the new Statutory Auditor.
• The INDEPENDENT AUDITOR'S REPORT is self-explanatory and requires no further comments by the Board of Directors.
• M/s Mushtaq A. Mir & Co, Cost Accountants were appointed as cost auditor.
• The Company was not required to appoint a Secretarial Auditor.

Risk Management:

• The Board periodically reviews the risk management system.
• Introduced Internal Controls Management for integrated risk management.

Financial Statements & Audit Report:

• The report includes the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, and Statement of Changes in Equity.
• Independent Auditor's Report by Deloitte Haskins & Sells LLP expresses an unmodified opinion on the financial statements and internal financial controls.

AGM Details

• The 61st Annual General Meeting will be held on September 30, 2021, via Video Conferencing/Other Audio-Visual Means (OAVM)

Future Outlook:

• Company remains confident in achieving long-term objectives of inclusive, sustainable, and profitable growth.
• The Board acknowledges the contribution of employees, bankers, and government agencies.
• Gratitude expressed toward employees, business partners, and government bodies.
• The board also acknowledges front line corona warriors for their relentless fight against COVID-19.

This summary captures the key information from the Annual Report, providing a comprehensive overview of Hella India Lighting Limited's performance, strategies, and governance during the fiscal year 2020-21.