Annual Report: 2022
Hira Ferro Alloys Limited Annual Report FY 2021-22 Summary:
The 38th Annual Report of Hira Ferro Alloys Limited (HFAL) covers the business and operations of the company for the year ended March 31, 2022. The report includes audited standalone and consolidated financial statements and the auditor's report. The company's board includes Narayan Prasad Agrawal, Yarra Chandra Rao, Dinesh Kumar Gandhi, Bhrigu Nath Ojha, Bhavna Govindbhai Desai, Vinod Pillai, Ajay Dubey, and Biswajit Choudhuri, and Arvind Kumar Dubey. Dilip Chauhan is the Chief Financial Officer, and Mohit Chande is the Company Secretary. The registered office is located at 567B, Urla Industrial Area, Raipur, Chhattisgarh, 493221.
Financial Performance Review: The company's performance was excellent due to demand in the steel sector and better price realization. Gross sales were Rs 59321.28 lacs, with EBIDTA of 16901.52 lacs and PAT of Rs. 11349.13 lacs, compared to the previous year's gross sales of Rs. 31446.46 lacs, EBIDTA of Rs. 3365.66 Lacs, and PAT of Rs 2113.87 lacs. The sales turnover of Ferro Alloys increased by 108.19%. The sale of power decreased by 11.69% due to increased captive consumption. Net profit after tax grew by 436.89%. Production of Ferro Alloys was 47503.93 MTs, and sales were 45066.275 MTs. Power generation was 161996285 units in Thermal Power Plant, 90458760 units in the Bio-mass Power Plant and 2744343 units of power in its Wind Power.
Dividend: Due to the requirement of funds for a proposed Solar Power Plant, no dividend was declared for the financial year 2021-22.
Share Capital: 36,00,000 Equity shares of Rs 10/- each were allotted to Godawari Power and Alloys Limited on a preferential basis at Rs 195/- per share, to be used for setting up a Solar Power Plant in Chhattisgarh. The equity share capital increased to Rs. 23,18,85,000 divided into 2,31,88,500 equity shares of Rs 10/- each.
Other Business Changes: The company became a subsidiary of Godawari Power and Ispat Limited. The company sold its entire stake in Spring Solar Power Private Limited (SSPPL), and SSPPL has ceased to be a subsidiary of the company with effect from 27.09.2021. No change in the status of the associate company, Xtratrust Digisign Private Limited.
Directorate Changes: Biswajit Choudhuri resigned as Chairman, and Yarra Chandra Rao was appointed as Chairman. Vinod Pillai was appointed as Whole Time Director, effective April 1, 2022. Dinesh Kumar Gandhi was appointed as an Additional Director, effective April 12, 2022. Arvind Dubey resigned from the Board of Directors, effective April 12, 2022. Ajay Dubey retires by rotation but is eligible for reappointment.
Key Managerial Personnel: The designated Key Managerial Personnel are Narayan Prasad Agrawal, Dilip Chouhan, and Mohit Chande.
CSR: The CSR Committee was dissolved and later reconstituted due to changes in CSR obligation. The company spent Rs.19.25 Lacs on CSR activities and will be preparing an revised CSR policy for 2022-23 onward.
Director's Responsibility Statement: Confirms adherence to accounting standards, proper maintenance of records, and preparation of accounts on a going concern basis.
Other Committees: Mentions the Nomination and Remuneration Committee, Audit Committee, and Stakeholders Relationship Committee, detailing their composition and meetings. Shri Biswajit Choudhuri has resigned from the directorship of the Company and Shri Y.C. Rao, Non Executive Director of the Company has became Chairman of the Company with effect from 16.10.2021. The Board of Directors has appointed Mr, Bhrigu Nath Ojha as Chairman of the Committee and inducted Ms Bhavna Govindbhai Desai as member of the Committee w.e.f. 16.10.2021.
Auditors: JDS & Co., Chartered Accountants, are the statutory auditors, with reappointment approved for a second term of 5 years until the 43rd Annual General Meeting. M/s Sanat Joshi & Associates have been appointed as cost auditors for FY 2022-23. M/s.OPS & Co, Chartered Accountants were appointed as Internal Auditors for the FY 2021-22 and FY 2022-23.
Audit reports: Includes details on the Secretarial Audit, Auditor's Reports, Whistle Blower Policy, and Related Party Transactions.
Other legal and regulatory requirements: Pertain to conservation of energy, technology absorption and foreign exchange earnings. For Energy conservation, no additional measures have been taken during the financial year. During the year under review your company has used foreign exchange of Rs. 51.80 Lakhs.
Internal controls: Company has an internal control system and a Risk Management Policy.
Annexure-A: Details of CSR activities and the reconstitution of the CSR committee is enclosed as Annexure -A.
Standalone Financial Results: Contains detailed balance sheets, profit and loss statements, cash flow statements, and equity statements, along with notes to the financial statements and auditor's report. There has been no resignation of the statutory auditors of the Company during the year. and Company is not capable of meeting its liabilities. There are no unspent amounts towards Corporate Social Responsibility.
Risk factors: Key risks revolve around Credit risk, Liquidity risk and Interest rate risk as well as price and foreign exchange rate risk.
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