Hindusthan Engineering & Industries Limited Unlisted Shares Annual Reports

Hindusthan Engineering & Industries Limited Unlisted Shares

The Annual Report 2023-24 of Hindusthan Engineering & Industries Limited presents the company's performance for the financial year ending March 31, 2024. **Key Financial Results (Standalone):** * Profit after all expenses but before depreciation and taxation: Rs. 311.82 Lakhs (2023-2024) from Rs. 128.91 Lakhs (2022-2023). * Profit Before Tax: Rs. 275.97 Lakhs (2023-2024) from Rs. 94.34 Lakhs (2022-2023). * Net Profit after Tax: Rs. 207.28 Lakhs (2023-2024) from Rs. 70.03 Lakhs (2022-2023). * Total Comprehensive Income: Rs. 205.77 Lakhs (2023-2024) from Rs. 70.85 Lakhs (2022-2023). * No dividend is recommended to conserve resources. * No amount of profit was transferred to any reserve during the year. * The paid-up equity share capital as of March 31, 2024, remained unchanged at Rs. 14,70,67,760. **Operational Performance:** * The Engineering Division achieved higher sales and profits compared to the previous year. * Hindusthan Chemicals Company achieved lower sales but higher profit. * Dalhousie Jute Company experienced lower sales and profits. **Subsidiary & Consolidated Financials:** * The company has one wholly-owned subsidiary, Hindusthan Vidyut Corporation Limited (HVCL), formed to set up a power plant, which has not yet commenced business activities. * Consolidated Financial Statements were prepared, including the subsidiary. **Directors & Governance:** * Vikram Aditya Mody retires by rotation, offering himself for reappointment. * Anil Kumar Damari Singh was re-appointed as Executive Director (Technical). * Vikram Aditya Mody was appointed as Executive Chairman. * Rajendra Kumar Duggar and Mool Chand Gauba were appointed as Additional Independent Directors w.e.f. 19th July, 2024. * The Board met 7 times during the year, with details of director attendance provided. * Details of Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee composition and attendance are listed. * The Independent Directors had a separate meeting on February 20, 2024. * The Board adopted a Nomination & Remuneration Policy, highlighting selection and appointment procedures. * An evaluation of the performance of Independent Directors, the Board, and its committees was conducted. **Corporate Social Responsibility (CSR):** * The company has a CSR policy focused on education. The CSR Policy is available on the Company's Website. * Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project) : Rs. 134 Lacs. * Average net profit of the Company as per section 135(5): Rs. 6699.30 Lacs * Two percent of average net profit of the company as per section 135(5): Rs. 133.98 Lacs. **Auditors:** * M/s. Rajgaria & Associates are the Statutory Auditors, appointed for a 5-year term. * Explanations are provided for matters qualified by the Auditors in their report, concerning Malanpur Steel Ltd. (MSL) merger, loan recovery, and WBIDC loan adjustment. * M/s. S. K. Sahu & Associates and Smt. Poonam Shah are the Cost Auditors for the financial year 2024-2025. * Secretarial Audit was conducted by M/s MKB & Associates, with no qualifications or adverse remarks. **Other Key Points:** * The company did not accept public deposits. * Directors' Responsibility Statement is included. * Annual Return information is available on the company website. * Details of Vigil Mechanism for Directors and Employees are provided. * No frauds were reported by Auditors. * Internal Financial Control systems are considered adequate. * Related Party Transactions were in the ordinary course of business and on arm's length basis. * Information on Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo is provided in Annexure - 3. * The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. * There have been no material changes or commitments after the Balance Sheet date. * There was no instance of any material order passed by any regulator/court/tribunal impacting the going concern status of the Company and its future operations. * There is no change in the nature of Business of the Company during the financial year 2023-2024. **Auditor's Report:** The independent auditor's report expresses a qualified opinion due to uncertainties regarding the accounting of reliefs/concessions, the recoverability of loans, and the valuation of the power project. The report outlines responsibilities of management and auditors, and includes reports on legal and regulatory requirements, including compliance with the Companies (Auditor's Report) Order, 2020. The audit report refers to compliance with Indian Accounting Standards and other matters required by the Companies Act, 2013.

Hindusthan Engineering & Industries Limited Unlisted Shares

Annual Report 2021-22 of Hindusthan Engineering & Industries Limited covers the company's financial performance, operational highlights, corporate governance, and other statutory information. **Financial Performance (Standalone):** * The company’s profit for the year after expenses but before depreciation and taxation was ₹85.65 lakhs (2021-2022) vs ₹89.64 lakhs (2020-2021). * Depreciation for the current year was ₹35.46 lakhs (2021-2022) vs ₹33.21 lakhs (2020-2021). * Profit Before Tax stood at ₹50.19 lakhs (2021-2022) vs ₹56.43 lakhs (2020-2021). * Net Profit after Tax was ₹38.74 lakhs (2021-2022) vs ₹40.16 lakhs (2020-2021). * The Board does not recommend any dividend for the year ended March 31, 2022, to conserve the Company’s resources. **Operational Performance:** * The Company has adopted Indian Accounting Standards (IND AS) with effect from April 1, 2016. * The Engineering Division achieved higher sales & profit compared to last year. * Hindusthan Chemicals Company achieved higher sales and lower profit compared to last year. * Dalhousie Jute Company achieved higher sales and lower profit compared to last year. * The Covid-19 pandemic caused severe disruption in operations, impacting the annual performance. * The paid-up equity share capital as on March 31, 2022, was ₹15,00,07,820 with no change during the year. * Hindusthan Vidyut Corporation Limited (HVCL), a wholly-owned subsidiary, has not yet commenced business activities. * The Company has prepared Consolidated Financial Statements. * The company has not accepted any deposit from the public during the year. **Corporate Governance and Compliance:** * Vikram Aditya Mody retired by rotation but offered himself for re-appointment. * The re-appointment of Anil Kumar Damari Singh, Executive Director (Technical), was approved for 3 years w.e.f. April 16, 2021. * Biswajit Choudhuri, Independent Director, passed away on October 22nd, 2021. * The Board met 4 times during the year. * The company has an Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee. * A separate meeting of the Independent Directors was held on February 24, 2022. * The Corporate Social Responsibility Committee has identified education as its focus area and would also undertake other need-based initiatives. CSR Policy is available on the company's website. * M/s. S. Rastogi & Associates were appointed as Statutory Auditors for 5 consecutive years in 2018. * The Board has appointed M/s. S. K. Sahu & Associates and Shri Than Mal Rathi, as Cost Auditors for the financial year 2022-2023. * M/s MKB & Associates were appointed to undertake the Secretarial Audit of the Company. The Secretarial Audit Report does not contain any qualification, reservation, adverse remark, or disclaimer. * The Directors state that applicable Secretarial Standards (SS-1 and SS-2) have been duly followed. * The Nomination & Remuneration Policy includes a policy for the selection and appointment of Directors, Key Managerial Personnel, Senior Management Personnel, and their remuneration. * The Independent Directors reviewed and evaluated the performance of Non-Independent Directors, Board as a whole and the performance of the Chairman of the Company. * The Company has formulated a Risk Management Policy. * The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. **Other Key Information:** * Information relating to Conservation of Energy, Technology Absorption, and Foreign Exchange Earnings and Outgo is annexed. * The Company has a Vigil Mechanism Policy for Directors and Employees. * The company has not availed any one time settlement. * Auditors report included qualified opinions related to accounting of reliefs/concessions, recovery of loans, and the integrated lignite mining cum power generation project. * The company maintains proper records showing full particulars including quantitative details & situation of Property, Plant & Equipment & intangible assets. **CSR Activities:** * The CSR Committee aims to actively contribute to the education of Girl Child. * Meetings of the CSR Committee were held and attended by members. * The Company has spent the prescribed CSR amount in the financial year 2021-22. **Auditor’s Report:** * The report includes qualified opinions due to a lack of certainty regarding the approval of certain reliefs/concessions, amounts recoverable for loans, and concerning the implementation status of the integrated lignite mining-cum-power generation project undertaken by the subsidiary.

Hindusthan Engineering & Industries Limited Unlisted Shares

The 2020-2021 Annual Report for Hindusthan Engineering & Industries Limited details the company's financial performance and key activities during the fiscal year ending March 31, 2021. The company has prepared standalone and consolidated financial statements in compliance with the Companies Act, 2013 and relevant accounting standards. **Financial Performance:** The report highlights operating results, both standalone and consolidated. The standalone operating results of the company for the year 2020-2021 includes: * Profit for the year before depreciation and taxation: Rs. 89,63,98,000 compared to Rs. 51,60,93,000 in 2019-2020. * Depreciation for the current year: Rs. 33,21,23,000. * Profit Before Tax: Rs. 56,42,75,000 compared to Rs. 19,03,40,000 in 2019-2020. * Provision for Income Tax: Rs. 17,92,11,000 (Current Tax) with some adjustments for earlier years and deferred tax. * Net Profit after Tax: Rs. 40,15,32,000 compared to Rs. 22,55,60,000 in 2019-2020. * Other Comprehensive Income (Net of Tax): Rs. (5,71,20,000). * Total Comprehensive Income: Rs. 34,44,12,000 compared to Rs. 24,31,59,000 in 2019-2020. * The Board did not recommend a dividend to conserve company resources. **Operational Performance:** * The company adopted Indian Accounting Standards (IND AS) effective April 1, 2016. * The Engineering Division experienced lower sales and profit compared to the previous year. * Hindusthan Chemicals Company, the chemical division, achieved higher sales and profit. * Dalhousie Jute Company, the jute division, recorded higher sales but lower profit. * The COVID-19 pandemic severely disrupted the company's operations. **Corporate Structure & Governance:** * The paid-up equity share capital as of March 31, 2021, was Rs. 15,00,07,820. * Hindusthan Vidyut Corporation Limited (HVCL) is a wholly-owned subsidiary, formed to set up a power plant but has not commenced business activities. * The report includes a Directors' Responsibility Statement confirming adherence to accounting standards, policies, and internal controls. * Details of changes in Directors and Key Managerial Personnel are provided, including the retirement of Shri R.P. Mody and the passing of Shri Biswajit Choudhuri. Shri Anil Kumar Damari Singh was re-appointed. **Corporate Governance Committees:** The report details the composition and attendance of the following committees: * Audit Committee * Nomination & Remuneration Committee * Stakeholders Relationship Committee * Corporate Social Responsibility (CSR) Committee * An Independent Director's Meeting was held on March 15, 2021. **Corporate Social Responsibility:** * The company has a CSR policy, focusing on education. * The annual report on CSR activities is included as Annexure-1. * Rs. 82.50 Lacs was spent for the financial year, primarily on education of girl child in Rajasthan. **Auditors Report:** * M/s. S. Rastogi & Associates were appointed as Statutory Auditors for a 5-year term. * The Auditor's Report includes qualifications related to certain amounts claimed by authorities, loans, trade receivables and advances, and certain reliefs and concessions. **Other Key Highlights:** * The company is taking steps to recover loans, trade receivables, and advances. * No frauds were reported by Auditors. * M/s. S. K. Sahu & Associates and Shri Than Mal Rathi have been appointed as Cost Auditors. * M/s. MKB & Associates has been appointed as Secretarial Auditor. * The Board has adopted a Nomination & Remuneration Policy. * The company has formulated a Vigil Mechanism Policy and a Risk Management Policy. * The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. **Other Annexures:** * Annexure-1 details Corporate Social Responsibility Activities * Annexure -2 is the Secretarial Audit Report * Annexure-3 provides information relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo. The company is exploring the possibilities for use of solar power. The Company has successfully absorbed and adapted technology for the manufacture of various chemicals. Foreign Exchange outgo in terms of actual outflows was Rs. 73,09,50. * Net earnings for the Company totalled Rs. 26.77 per share. In conclusion, the Annual Report reflects a year marked by operational challenges due to the global pandemic, along with increased focus on sustainable practices and responsible corporate governance.