Hindusthan Engineering & Industries Limited Unlisted Shares

Annual Report Summary

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.