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Hella India Lighting Unlisted Shares

Annual Report: 2022

Year: 2022

Annual Report Summary

Hella India Lighting Limited - Annual Report 2021-22 Summary:

Company Overview:

Hella India Lighting Limited presents its 62nd Annual Report, highlighting a successful financial year 2021-22. The company manufactures automotive lights, switches, blinkers, and provides related services. Hella's strategy focuses on product innovation and safety excellence.

Financial Performance:

  • Revenue Growth: The company experienced significant revenue growth, increasing from INR 19,290.07 million in FY 2020-21 to INR 30,300.99 million in FY 2021-22.
  • Expense Increase: Total expenses increased to INR 28,195.88 million from INR 19,313.07 million in the previous year due to increased raw material costs and employee benefits.
  • Profitability: Profit before tax was INR 2,367.75 million (previous year INR 278.63 million). Profit after tax increased to INR 1,697.75 million, compared to INR 3.14 million in the previous financial year.
  • Earnings Per Share: Basic and diluted earnings per share stood at INR 53.54, significantly higher than the previous year's INR 0.10.

Business Operations & Developments:

  • Digital Transformation: The company embraced digital transformation by creating a digital ecosystem to manage work schedules and marketing communications.
  • Electric Vehicle Segment: HELLA entered the 2W Electric Vehicle market segment with LED Front Lighting Systems for 5 OEMs.
  • Localization: A LED Head Lamp in the 5.75" size was locally developed and manufactured at the Derabassi Plant.
  • Global Expansion: HELLA successfully launched LED Marker lamps for a Global EV OEM in the USA.
  • Process Improvement: Improvements were made to process capability at the Derabassi plant, including the installation of a Soft Water Plant and a new Arzuffi Metallizer.
  • Aftermarket Expansion: A full range of filters and lubricants for 2-wheelers and cars was launched. The company also expanded its repertoire of vehicle-specific products.
  • Ground Marketing Activities: HELLA re-engaged in ground marketing activities like Hella Value Partners Meet, Retailers Meet, Mechanics & Electricians Meets and Regional Expos, fostering stronger relationships.

Corporate Social Responsibility (CSR):

  • The company is focused on road safety as its corporate social goal. It organized knowledge and awareness programs, seminars, exhibitions, and road safety drives.
  • The "Pahal" Industrywide awareness campaign, through online training modules on Road Safety, was created and delivered by "Drive Smart, Drive Safe."
  • Global Think Act Save project started and Energy saved sums up to 356000 KWH/Year and CO2 emission reduced by 252 T/Year.
  • Energy as % of sales reduced from 1.98% to 1.43% in FY 21-22. Mfg. Cost as % of sales reduced from 23% to 19% in FY 21-22.
  • Total CSR obligation for the financial year is INR 8,51,526/-, and the amount spent for the financial year is INR 13,00,000/-.

Board & Committees:

  • The Board met four times during the financial year.
  • Various committees are in place, including the Audit Committee, CSR Committee, Nomination & Remuneration Committee, and Stakeholders Relationship Committee.

Statutory Information:

  • M/s S.N. Dhawan & Co LLP were appointed as Statutory Auditors for a 5-year term.
  • No fraud was reported by the auditors.
  • The company affirmed compliance with applicable Secretarial Standards.

Other Key Highlights:

  • No change in the nature of business.
  • No material changes and commitments affecting the company's financial position occurred after the financial year end.
  • The Board of Directors did not recommend any dividend for the year, retaining profits for future growth.
  • The company has implemented an Internal Committee for addressing sexual harassment complaints.
  • Independent directors have submitted declarations of independence.
  • The Board acknowledges the cooperation and assistance from various stakeholders, including bankers and customers.

Notice of Annual General Meeting (AGM):

  • The 62nd AGM is scheduled for September 23, 2022, via video conferencing.
  • Ordinary business includes adopting the financial statements and re-appointing Mr. Christoph Boris Söhnchen as director.
  • Special business includes appointing Mr. Stefan Van Dalen as Director and ratifying the cost auditor's remuneration.
  • Details on e-voting and participation in the AGM are provided.

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