Hindusthan Engineering & Industries Limited Unlisted Shares

Annual Report Summary

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.