Hira Ferro Alloys Unlisted Shares

Annual Report Summary

Here's a comprehensive summary of the provided PDF, aiming to cover all key aspects while adhering to the specific requirements outlined.

Overview:

The document is the 40th Annual Report for FY 2023-24 of Hira Ferro Alloys Limited (HFAL), a company engaged in manufacturing ferro alloys, products, and electricity generation. The report includes information on the company's performance, operations, financial results, corporate governance, and compliance matters.

Financial Performance:

• HFAL's financial performance in FY 2023-24 was satisfactory due to demand in the steel sector and better price realization. However, key financial metrics decreased compared to the previous year.
• Gross sales were Rs 34560.39 lacs, EBIDTA was Rs 3853.65 lacs, and PAT was Rs. 820.09 lacs. This compares to gross sales of Rs. 45378.01 lacs, EBIDTA of Rs. 4119.87 lacs, and PAT of Rs. 2178.96 lacs in the previous year.
• The sales turnover of ferro alloys decreased by 19.72% due to lower prices in the steel sector.
• The sale of power decreased by 9.23% due to increased captive consumption.
• Net profit after tax decreased due to lower price realizations and increased depreciation and finance charges.
• HFAL produced 41637.30 MTs of ferro alloys and sold 41619.85 MTs during FY 2023-24.

Power Generation:

• HFAL generated 114898900 units of power in its Thermal Power Plant.
• HFAL generated 32221350 units of power in its Bio-mass Power Plant.
• HFAL generated 2733043 units of power in its Wind Power.
• HFAL generated 54239946 units of power in its Captive Solar Power.
• The company commissioned a 22 MWp Captive Solar PV Power Plant on 29.11.2023, part of a proposed 60 MWp capacity.
• HFAL had earlier commissioned a 30 MWp Solar PV Power Plant on 29.03.2023, and a 52 MWp plant has been commissioned overall.
• The company is trying to acquire additional land for the remaining 8 MWp capacity.
• The solar power plant will be used for captive consumption, supporting green initiatives, reducing the carbon footprint, and improving profitability.

Dividend & Reserves:

• No dividend was declared for the financial year 2024-25.
• No amount was transferred to the General Reserve during the financial year 2023-24.

Share Capital:

• There was no change in the share capital during the year.
• The paid-up share capital was Rs. 1,33,18,85,000, divided into 2,31,88,500 equity shares of Rs 10/- each and 11,00,00,000 preference shares of Rs 10/- each.
• The company did not issue shares with differential voting rights, stock options, or convertible securities.
• Equity shares representing 99.87% and preference shares representing 100% are in dematerialized form.

Corporate Governance & Compliance:

• Mr. B. N. Ojha, Independent Director, retired, and Mr. Hukam Chand Daga was appointed as an Additional Independent Director.
• The Board designated key managerial personnel, including Mr. Narayan Prasad Agrawal (Managing Director), Mr. Dilip Chouhan (Chief Financial Officer), and Mr. Mohit Chande (Company Secretary).
• The CSR committee met twice. The company spent Rs. 140.25 Lacs on CSR activities.
• The Directors' Responsibility Statement confirms compliance with accounting standards, maintenance of records, and internal financial controls.
• A meeting of Independent Directors was held.
• The Audit Committee comprised three directors and met four times.
• The company has a Vigil Mechanism/Whistle Blower Policy.
• All related party transactions were on arm's length basis and in the ordinary course of business.
• M/s Singhi & Co. are the statutory auditors, M/s Sanat Joshi & Associates are the cost auditors, and M/s. OPS & Co are the internal auditors.
• The report on Secretarial Audit of the Company for the year 2023-24 is enclosed herewith as Annexure -2. There are no qualifications, reservations or adverse remarks in the secretarial audit report of the company.
• The company has an internal control system commensurate with its size and operations.
• The company has adopted a Risk Management Policy.
• The company has an Anti-Sexual Harassment Policy and an Internal Complaints Committee (ICC). No complaints were received during the year.
• There were no applications made under the Insolvency and Bankruptcy Code 2016.

Other Disclosures:

• There are no qualifications, reservations or adverse remarks in the Statutory Auditor's Report.
• The company has disclosed the impact of pending litigations on its financial position.
• The company has used foreign exchange of Rs. 280.41 Lakhs.
• Details of Directors seeking appointment/reappointment/Retiring by Rotation at the ensuing Annual General Meeting is given in explanatory statement.

Annexure - 1: CSR Activities:

• The CSR Committee formulated a CSR policy.
• Total CSR obligation for the financial year 2023-24 was Rs 13,799,563.
• The amount spent on CSR projects was Rs 1,42,87,452.

Annexure - 2: Secretarial Audit Report:

• The company generally complied with the statutory provisions listed in the report.

Standalone Financial Statements Highlights:

• The standalone financial statements include the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, and Notes to Financial Statements.
• Detailed financial data, including assets, liabilities, equity, revenue, expenses, and cash flows, are presented.

Consolidated Financial Statements Highlights:

• The consolidated financial statements include the Consolidated Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, and Notes to Financial Statements, including a summary of significant accounting policies.
• All related party transactions were on arm's length basis and in the ordinary course of business.
• More extensive details, especially pertaining to the financial position as well as notes for these statements can be found directly in the report.