Hei Ar 2019 20

Annual Report 2019-20
Hindusthan Engineering & Industries Limited

(An enterprise of THE HINDUSTHAN GROUP)
Hindusthan Engineering &
Industries Limited
DIRECTORS
DIRECTORS
Shri
Shri VR.AP.Mody,
Mody,Chairman
Chairman
Shri
Shri Satish
VikramKapur
Aditya Mody
Shri Biswajit
Shri Satish Kapur
Choudhuri
ShriRanjan
Dr. Biswajit Choudhuri
Ghosh
Dr. Ranjan Ghosh
Smt. Archana Agarwal
Smt.AArchana
Shri Agarwal
K D Singh, Executive Director (Technical)
Shri A. K. D. Singh, Executive Director (Technical)
CHIEF FINANCIAL OFFICER
Shri P K Himatsingka
CHIEF FINANCIAL OFFICER
Shri J. K. Singhania
COMPANY SECRETARY
Shri R. K. Agarwal
COMPANY SECRETARY
Shri R. K. Agarwal
AUDITORS
M/s. S. Rastogi & Associates, Chartered Accountants
AUDITORS
M/s. S. Rastogi & Associates, Chartered Accountants
BANKERS
BANKERS
Axis Bank Limited
Axis Bank
Indian Limited
Overseas Bank
Indian Overseas Bank
Punjab National Bank
PunjabBank
United National Bank
Of India
United Bank Of India
REGISTERED OFFICE
REGISTERED OFFICE
““Mody
Mody Building”
Building”
27,
27, Sir R N
Sir R N Mukherjee
Mukherjee Road
Road
Kolkata
Kolkata 700001
700001
Phone:
Phone: (033) 2248 0166
(033) 2248 0166/ /2248
22480167
0167
Fax: (033) 2248 1922
Fax: (033) 2248 1922
Email:
Email: ho@heilindia.com
ho@heilindia.com
Website: www.heilindia.com
CIN: U93000WB1998PLC086303
CIN: U93000WB1998PLC086303
WORKS
WORKS
Bamunari (West Bengal)
Bamunari (West Bengal)
Bharatpur (Rajasthan)
Bharatpur (Rajasthan)
Champdany (West Bengal)
Champdany (West Bengal)
Faridabad (Haryana)
Faridabad
Kolkata (Haryana)
(West Bengal)
Kolkata
Malanpur (West Bengal
(Madhya )
Pradesh)
Malanpur
Olpad (Madhya Pradesh)
(Gujarat)
Olpad
Santragachi(Gujarat)
(West Bengal)
Santragachi (West Bengal )

Hindusthan Engineering & Industries Limited Annual Report 2019-20
CONTENTS
Directors’ Report 3
Independent Auditors’ Report 16
Standalone Balance Sheet 22
Standalone Statement of Profit And Loss 23
Standalone Cash Flow Statement 24
Notes to the Standalone Financial Statements 26
Independent Auditors’ Report on the Consolidated Financial Statement 52
Consolidated Balance Sheet 56
Consolidated Statement of Profit & Loss 57
Consolidated Cash Flow Statement 58
Notes to the Consolidated Financial Statements 60
Notice 87
2
Directors’ Report
To,
The Members,
The Directors are pleased to present the Twenty Third Annual Report and Audited Financial Statement of the Company for the
financial year ended 31st March, 2020.
The Operating Results (Standalone) of the Company for the year are as follows:
(Rs ‘000)
2019-2020 2018-2019
The profit for the year after meeting all expenses but before providing for depreciation
and taxation 51 60 93 97 78 80
From which have to be deducted: Depreciation for the current year 32 57 53 32 74 92
Profit Before Tax 19 03 40 65 03 88
Provision for Income Tax - Current Tax 8 28 80 25 00 00
- Tax Related to earlier Year (17 41) 2 26 14
- Deferred Tax (11 63 59) (1 93 22)
Net Profit after Tax 22 55 60 39 70 96
Other Comprehensive Income (Net of Tax) 1 75 99 2 35 02
Total Comprehensive Income 24 31 59 42 05 98
Dividend:
The Board, in order to conserve the resources of the Company, do not recommend any dividend for the year ended 31st March,
2020.
Reserves:
During the year under review no amount of profit has been transferred to any reserve.
Operational Performance:
The Company has adopted Indian Accounting Standards (IND AS) with effect from 1st April, 2016, pursuant to the notification
of the Companies (Indian Accounting Standard) Rules, 2015 issued by the Ministry of Corporate Affairs.
The Engineering Division of the Company has achieved lower sales as compared to last year. Requirement of Indian Railways
reduced thereby resulting in under utilization of capacity & price of material went to uneconomical level resulting in lower profit
in comparison to last year.
Hindusthan Chemicals Company, the company’s chemical division at Olpad, Dist. Surat (Gujarat) has achieved lower sales
and lower profit as compared to last year.
Dalhousie Jute Company, the company’s jute division at Champdany, West Bengal has achieved higher sales and higher profit
as compared to last year.
GLOBAL PANDEMIC – COVID-19
The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of
economic activity. In many countries, businesses are being forced to cease or limit their operations for long or indefinite periods
of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing and closures
of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown.
COVID-19 is significantly impacting business operation of the companies, by way of interruption in production, supply chain
disruption, unavailability of personnel, closure / lockdown of production facilities etc. On March 24, 2020, the Government of
India ordered a nationwide lockdown for 21 days which further got extended till May 3, 2020 and thereafter it was extended
from time to time to prevent community spread of COVID-19 in India resulting in significant reduction in economic activities.
3
Directors’ Report (Contd.)
Share Capital
st
The paid-up equity share capital as on 31 March, 2020 was Rs.15,00,07,820. There has been no change in the equity share
capital of the Company during the year.
Subsidiary & Associate Companies:
As required under Rule 8(1) of the Companies (Accounts) Rules, 2014 the Board’s Report has been prepared on a Standalone
basis. The Company has one Subsidiary Company.
1. Hindusthan Vidyut Corporation Limited (HVCL) is a wholly owned Subsidiary of the Company. The Company was formed for
setting up a power plant. The HVCL has not yet commenced any business activities and its accounts have been considered
in the consolidated financial results of the Company.
During the Financial Year 2019-2020 4 (four) Associate Companies namely (1) Kanchan Stock Pvt. Ltd., (2) Superb Finance
Pvt. Ltd, (3) Support Holding Pvt. Ltd and (4) Unique Stock Pvt. Ltd ceases to be associates of the Company.
Consolidated Financial Statement:
In accordance with Section 129 (3) of the Companies Act, 2013, the Company has prepared Consolidated Financial Statements
of the Company and its Subsidiary which forms part of the Annual Report. A statement containing the salient features of the
financial statement of the Subsidiary in Form AOC-1 is given in notes to the Consolidated Results of the Company.
As per Section 136 of the Companies Act, 2013, the Audited Financial Statements of the Subsidiary Company is available
at the Company’s website (www.heilindia.com) and the Company will make available a copy thereof to any member of the
Company who may be interested in obtaining the same.
Deposits:
During the year under review, the Company has not accepted any deposit from the public within the ambit of Section 73 of the
Companies Act, 2013 and the Companies (Acceptance of Deposit) Rules, 2014.
Directors’ Responsibility Statement:
As required under Section 134 of the Companies Act, 2013, the Directors confirm that:
(a) in the preparation of the annual accounts for the year ended 31st March, 2020, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2020 and
of the profit and loss of the Company for the year ended 31st March, 2020;
(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud
and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) proper systems had been devised to ensure compliance with the provisions of all applicable laws and that such systems
were adequate and operating effectively.
Extract of the Annual Return:
An Extract of the Annual Return in Form No. MGT.9 as required under Section 92(3) of the Companies Act, 2013 is placed on
the Company’s website at www.heilindia.com under Investors Section and the weblink is www.heilindia.com/pdf/HEIL_MGT-
9_2020.pdf.
Directors:
a) Changes in Directors and Key Managerial Personnel:
Shri R P Mody, Chairman of the Company retired with effect from 1st July 2020. Your Directors put on record their deep
appreciation for the valuable services rendered by Shri R P Mody during his tenure.
4
Pursuant to the provision of Section 152 (6) of the Companies Act, 2013 Shri Vikram Aditya Mody retires by rotation at the
ensuing Annual General Meeting and being eligible, offers himself for re-appointment.
The term of office of Shri Anil Kumar Damari Singh will expire on 15th April 2021. The Board of Directors in its meeting
held on 18.11.2020 considered the recommendation of the Nomination and Remuneration Committee and re-appointed Shri
Anil Kumar Damari Singh (subject to approval of members in the ensuing Annual General Meeting) as Executive Director
(Technical) for a further period of 3 (Three) years w.e.f 16th April 2021.
Appropriate Resolution seeking the appointment of Directors are appearing in the Notice convening the ensuing Annual
General Meeting of the Company.
The details of the above Directors about their qualification, other directorship, etc., as required in Secretarial Standard on
General Meetings (SS-2) are provided in the explanatory statement under Section 102 of the Companies Act, 2013 separately
annexed to the Notice.
During the year under review Shri Jayant Kumar Singhania has resigned from the post of Chief Financial Officer (CFO)
w.e.f 9th September, 2019 and Shri Prakash Kumar Himatsingka has been appointed as Chief Financial Officer (CFO) w.e.f.
10th September, 2019.
b) Declaration by Independent Directors:
The Independent Directors have submitted the declaration of Independence under Section 149(7) of the Companies Act,
2013, that they meet the criteria of independence as provided in Section 149(6) of the Companies Act, 2013.
Number of Board Meetings:
The Board of Directors met 5 (five) times during the year. The meetings of the Board of Directors were held on 18.05.2019,
25.06.2019, 26.08.2019, 26.11.2019 and 17.03.2020. The details of the attendance of the Directors in the Board Meeting are
as hereunder.
Sl. No. Name of the Director Category No of Board Meeting attended

1 Shri Rajendra Prasad Mody Non-Executive Director 5
2 Shri Vikram Aditya Mody Non-Executive Director 5
3 Shri Biswajit Choudhuri Independent Director 5
4 Shri Satish Kapur Independent Director 5
5 Dr. Ranjan Ghosh Independent Director 5
6 Smt. Archana Agarwal Independent Director 5
7 Shri Anil Kumar Damari Singh Executive Director 5
Committee of the Board:
The Board of Directors has constituted Board Committees to deal with the specific areas and activities which concern the
Company and require a closer review. The minutes of the Committee meetings are placed before the Board for noting. The
Board currently has the following Committees:
a) Audit Committee Composition and attendance
The Audit Committee met 4 (four) times during the year. The meetings of the Audit Committee were held on 25.06.2019,
26.08.2019, 26.11.2019. and on 17.03.2020. All the recommendations made by the Audit Committee were accepted by the
Board. The table below highlights the composition and attendance of the members of the Committee:
Sl. No Name of the Director Position Category No. of Meeting attended

1 Shri Biswajit Choudhuri Chairman Non-Executive Independent 4
2 Shri Satish Kapur Member Non-Executive Independent 4
3 Dr. Ranjan Ghosh Member Non-Executive Independent 4
4 Shri Anil Kumar Damari Singh Member Executive Director (Technical) 4
5
b) Nomination & Remuneration Committee Composition and attendance
The Committee met 3 (three) times during the year. The meetings of the Nomination and Remuneration Committee were
held on 25.06.2019, 26.08.2019 and on 17.03.2020. All the recommendations made by the Nomination and Remuneration
Committee were accepted by the Board. The table below highlights the composition and attendance of the members of the
Committee:
Sl. No. Name of the Director Position Category No. of Meeting attended
c) Stakeholders Relationship Committee Composition and attendance
The Stakeholders Relationship Committee met twice during the year on 25.06.2019 and 17.03.2020. The table below highlights
the composition and attendance of the members of the Committee:
4 Shri Anil Kumar Damari Singh Member Executive Director (Technical) 2
d) Corporate Social Responsibility Committee Composition and attendance:
The Corporate Social Responsibility Committee met twice during the year on 25.06.2019 and 17.03.2020. The table below
highlights the composition and attendance of the members of the Committee:
1 Shri Rajendra Prasad Mody Chairman Non-Executive 2
2 Shri Biswajit Choudhuri Member Non-Executive Independent 2
Independent Director’s Meeting:
As required under Section 149(8) & Schedule IV of the Companies Act, 2013 a Separate meeting of the Independent Directors
was held on 17.03.2020.
Corporate Social Responsibility (CSR):
The Corporate Social Responsibility Committee (CSR) has formulated and recommended to the Board, a Corporate Social
Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, which has been approved by
the Board. The CSR Policy may be accessed on the Company’s website at the link: www.heilindia.com/pdf/HEIL_CSR_Policy.
pdf. The Company has identified education as its focus area of engagement. The Company would also undertake other need
based initiatives in compliance with Section 135 and Schedule VII of the Companies Act, 2013.
Pursuant to Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, Annual Report on CSR in the
prescribed format is attached as Annexure-1 and forms an integral part of this report.
Auditors & Auditors’ Report:
M/s. S. Rastogi & Associates, Chartered Accountants, having Firm Registration No. 318123E (Proprietor:– CA. S. Rastogi,
FCA, having CA Membership No. 053823) of 42, Kali Krishna Tagore Street, 1st Floor, Kolkata – 700007 were appointed as
st
Statutory Auditors of the Company for a term of 5 (five) consecutive years, from the conclusion of the 21 Annual General
th
Meeting of the Company held on 29 September 2018 till the conclusion of 26 Annual General Meeting of the Company to
th
be held in the year 2023.

As per the requirement of Section 134 of the Companies Act, 2013, in relation to the matter qualified by the Auditors in their
Report, our explanation are as here under:
6
(i) Auditor’s Report - Clause(a): Malanpur Steel Ltd. (MSL) had been merged with the Company with retrospective effect
from 1st April 2009 as per scheme sanctioned by the Hon’ble Board for Industrial & Financial Reconstruction (BIFR)
vide its Order dated 4th September 2012. Certain amounts claimed by different authorities against which the necessary
provision had been made in the scheme have not been provided for in the accounts as these are claimed but not payable
by the Company & are under reconciliation with respective authorities. The same have been disclosed as contingent
liability in the accounts. Reliefs / Concessions claimed from various statutory authorities viz. Income Tax, Sales Tax &
Excise etc. are under consideration of respective authorities & approval of the same are awaited. However, the effects
thereof have been taken in the accounts. Necessary adjustment, if required, shall be made on disposal thereof by
respective authorities.
(ii) Clause(b) and 1(iii):The Company is taking necessary steps to recover the Loans given, Trade Receivables and
Advances. The Management is confident of recovery of the same in full and as such no provision has been made.
(iii) Clause 1(viii): Loan from WBIDC is adjustable against power subsidy receivable from Govt. of West Bengal, claim for
which has been lodged by the Company. The Company has filed a Writ Petition before the Hon’ble Calcutta High Court
and the matter is pending for adjudication and the adjustment if any, shall be made accordingly on final adjudication.
The management is taking necessary steps for payment of the stipulated instalments of interest free sales tax loan.
Fraud Reporting:
As required under Section 134(3)(ca), No frauds were reported by Auditors in terms of Section 143(2) of the Companies Act,
2013 and Rules, if any, made thereunder.
Cost Auditors:
The Board of Directors, on the recommendation of the Audit Committee, has appointed M/s. S. K. Sahu & Associates and Shri
T. M. Rathi, as Cost Auditors to audit the cost records of the Company for the financial year 2020-2021. As required under the
Companies Act, 2013, a resolution seeking member’s approval for the remuneration payable to the Cost Auditors forms part
of the Notice convening the Annual General Meeting for their ratification. The Cost Audit report for the year 2019-2020 will be
submitted to the Central Government within the period stipulated under the Companies Act, 2013.
The Company is required to maintain cost records as specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013 and accordingly such accounts and records are made and maintained.
Secretarial Audit:
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the rules made thereunder, the Company has
appointed M/s MKB & Associates, Kolkata a firm of Company Secretaries in practice to undertake the Secretarial Audit of the
Company. The Secretarial Audit Report is annexed as Annexure-2 and forms an integral part of this report.
The Secretarial Audit Report do not contain any qualification, reservation, adverse remark or disclaimer by the Secretarial
Auditors.
Compliance with Secretarial Standards
The Directors state that applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of Directors’
and ‘General Meetings’, respectively, have been duly followed by the Company.
Nomination & Remuneration Policy:
The Board has, on the recommendation of the Nomination & Remuneration Committee adopted a Nomination & Remuneration
Policy, which interalia includes policy for selection and appointment of Directors, Key Managerial Personnel, Senior Management
Personnel and their remuneration. The highlight of the Policy is as follows:
Procedure for selection and appointment of the Board Members
Board membership criteria:
The Committee, along with the Board, shall review on an annual basis, appropriate skills, characteristics and experience
required of a Board Member, KMP and SMP for the better management of the Company. The objective is to have a Board
with diverse background and experience in business, government, academics, technology and in areas that are relevant for
the Company’s global operations.
7
In evaluating the suitability of individual Board members, the Committee shall take into account many factors, including general
understanding of the Company’s business dynamics, global business and social perspective, educational and professional
background and personal achievements. Directors must possess experience at policy-making and operational levels in large
organizations that will indicate their ability to make meaningful contributions to the Board’s discussion and decision-making in
the area of complex issues facing the Company.
Director should possess the highest personal and professional ethics, integrity and values. They should be able to balance the
legitimate interest and concerns of all the Company’s stakeholders in arriving at decisions, rather than advancing the interests
of a particular constituency.
In addition, Directors must be willing to devote sufficient time and energy in carrying out their duties and responsibilities
effectively. They must have the aptitude to critically evaluate management’s working as part of a team in an environment of
collegiality and trust.
The Committee shall evaluate each individual with the objective of having a group that best enables the success of the
Company’s business.
Annual Evaluation of Board and Directors
As required under the Companies Act, 2013, an evaluation of the performance of the Independent Directors was carried out
by the Board of Directors during the year, based on the criteria laid down by the Nomination and Remuneration Committee.
On and overall assessment, it was found that all the Independent Directors have given a good account of themselves. The
Board concluded that the Independent Directors individually and collectively were well qualified and their contributions were
in the interest of the Company.
th
The Independent Directors in a separate meeting held on 17 March, 2020 reviewed and evaluated the performance of Non-
Independent Directors, Board as a whole and the performance of the Chairman of the Company.
Keeping the requirements under the Act, the Independent Directors laid down broad areas for evaluation. After detail discussion,
it was concluded that the performance of the Board collectively and the Directors individually on all counts of evaluation were
appreciable.
The performance of the Chairman and Executive Director was evaluated by Independent Directors for leadership and direction
to the Company judging as per the parameters of the evaluation criteria and it was noted that their performance was satisfactory.
It was further noted that the Chairman took proper initiative in policy decision making with the senior executives and Board.
The Board carried out the performance evaluations of its committees.
Selection of Board Members/ extending invitation to a potential director to join the Board:
One of the roles of the Committee is to periodically identify competency gaps in the Board, evaluate potential candidates as per
the criteria laid above, ascertain their availability and make suitable recommendations to the Board. The objective is to ensure
that the Company’s Board is appropriate at all points of time to be able to take decisions commensurate with the size and scale
of operations of the Company. The Committee also identifies suitable candidates in the event of a vacancy being created on
the Board on account of retirement, resignation or demise of an existing Board member. Based on the recommendations of
the Committee, the Board evaluates the candidate(s) and decides on the selection of the appropriate member.
The Board then shall make an invitation (verbal / written) to the new member to join the Board as a Director. On acceptance
of the same, the new Director may be appointed by the Board.
Procedure for selection and nomination of KMPs and SMPs
The Committee shall actively liaise with the relevant departments of the Company to study the requirement for management
personnel and produce a written document thereon;
The Committee may conduct a wide-ranging search for candidates for the positions of KMP and SMP within the Company,
within enterprises controlled by the Company or within enterprises in which the Company holds equity and on the human
resources market;
The professional, academic qualifications, professional titles, detailed work experience and all concurrently held positions of
the initial candidates shall be compiled as a written document;
8
A meeting of the Committee shall be convened and the qualifications, experience, skills and other capability of the initial
candidates shall be examined. After such examination recommendation for appointment of KMP and SMP together with the
relevant information about the appropriate candidate(s) shall be submitted to the Board of Directors;
The Committee shall carry out other follow-up tasks based on the decisions of and feedback from the Board of Directors.
Remuneration to Non-Executive Directors:
The Non-executive Directors of the company are paid remuneration by way of sitting fees for attending the meetings of the
Board of Directors and its Committees and the commission. The sitting fees of the Non-executive Directors for attending
meetings of Board of Directors and the Committees thereof may be modified from time to time only with the approval of the
Board in due compliance of the provisions of Companies Act, 2013 and amended from time to time.
Remuneration to Executive Directors, Key Managerial Personnel(s) (KMPs) & Senior Management Personnel (s) (SMPs):
The Company has a credible and transparent framework in determining and accounting for the remuneration of the Managing
Director/Whole Time Directors (MD/WTDs), Key Managerial Personnel(s) (KMPs) and Senior Management Personnel(s)
(SMPs). Their remuneration shall be governed by the external competitive environment, track record, potential, individual
performance and performance of the Company as well as industry standards. As a policy, the Executive Directors are neither
paid sitting fee nor any commission.
The Nomination & Remuneration Policy can be accessed at the www.heilindia.com/pdf/HEIL_NR_Policy.pdf
Annual Evaluation of Board and it’s Committees Performance:
During the financial year, the Board evaluated its own performance as well as that of its Committees and individual Directors. The
exercise was carried out covering various aspects of the Boards functioning such as composition of the Board & committees,
qualification, experience & competencies, performance of specific duties & obligations, governance issues etc. Separate
exercise was carried out to evaluate the performance of Non-Independent Directors. The performance of Independent Directors
has been evaluated based on the guidelines as provided under Schedule IV of the Act. The evaluation of the Independent
Directors was carried out by the entire Board except by the Director being evaluated. The directors were satisfied with the
evaluation results, which reflected the overall engagement of the Board and its Committees with the Company.
Managerial Remuneration:
The Company had no employee during the year who was in receipt of the remuneration in excess of the limit prescribed in
Rule 5(2) & 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Material Changes and Commitments after the Balance Sheet date:
No material changes and commitments affecting the financial position of the Company have occurred from the close of the
financial year ended 31.03.2020 till the date of this report. However, the impact on the financial performance of the company
caused due to the outbreak of COVID – 19 pandemic is unascertainable.
Going Concern Status/ Material Orders of Judicial Bodies/ Regulators:
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.
Changes in the nature of Business:
There is no change in the nature of Business of the Company during the financial year 2019-20.
Internal Financial Control Systems and their Adequacy:
The Company has an adequate internal financial control which provides a reasonable assurance in respect of providing
financial and operational information, complying with applicable statutes and policies, safeguarding assets, prevention
and detection of fraud, accuracy and completeness of accounting records. The Internal Auditors monitors and evaluates
the efficiency and adequacy of internal control system in the Company, its compliance with operating systems, accounting
procedures and policies.
Related Party Transactions:
All the related party transactions that were entered into during the year under review were in ordinary course of business and
9
on arm's length basis and do not attract the provision of section 188 of the Companies Act, 2013. There were no material
related party transactions during the year. Hence AOC - 2 is not required. The details of transactions with related parties are
provided in Note No- 41 of the standalone financial statements.
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo:
The information relating to Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo as required
under section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed
as Annexure - 3 and forms an integral part of this report.
Details of establishment of Vigil Mechanism for Directors and Employees:
The Company has formulated a Vigil Mechanism Policy for its Directors and employees to report genuine concerns. The policy
provides adequate safeguards against victimization of persons who use such mechanism and provides direct access to the
Chairman of the Audit Committee in appropriate or exceptional cases. The policy is posted on the website of the Company. No
Director or employee has been denied access to the Chairman of the Audit Committee during the financial year 2019-2020.
Particulars of Loans, Guarantees or Investments:
The particular of Loan & Investments made by the Company has been disclosed in the Financial Statement.
Risk Management Policy:
As per the requirement of Section 134 of the Companies Act, 2013, the Company has formulated a Risk Management Policy to
identify and then manage various elements of risk which, in the opinion of the Board could threaten or severally impact or bring
down the organization and the strategy to mitigate such risks. The policy involves reviewing the operations of the organization,
identifying potential threats to the organization and the likelihood of their occurrence, and then taking appropriate actions to
address the most likely threats.
Disclosures under Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013:
As required under the provision of The Sexual Harassment of Women at the workplace (Prevention & Redressal) Act, 2013
read with rule made thereunder, the Company has constituted an internal complaint Committee for redressal of the complaint
related to sexual harassment. During the year under review there were no complaints of sexual harassment.
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.
For and on behalf of the Board of Directors
A.K.D. Singh V.A. Mody

Executive Director (Technical) Director
DIN: 07160198 DIN: 00193192
Place: Kolkata
Date: the 18th day of November 2020
10
Annexure-1
Annual Report on Corporate Social Responsibility (CSR)
1 A brief outline of the Company's CSR policy including As per the provisions of the Companies Act, 2013 and rules framed
overview of projects or programs proposed to be thereunder, the Company has formulated its CSR Policy with the vision
undertaken and a reference to the web-link to the to actively contribute for education of Girl Child. The CSR Policy is stated
CSR policy and project or programs and disclosed on the website of the Company and the Weblink is- www.
heilindia.com/pdf/HEIL_CSR_Policy.pdf
2 The Composition of the CSR Committee 1. Shri Rajendra Prasad Mody
2. Shri Satish Kapur
3. Shri Biswajit Choudhuri
4. Dr. Ranjan Ghosh
3 Average net profit of the Company for last three Rs. 50,37,95,000/-
financial years
4 Prescribed CSR Expenditure ( two percent of the Rs. 1,01,00,000/-
amount as in item no-3)
5 Details of CSR spent during the financial year
a) Total amount to be spent for the Rs.1,01,00,000/-
financial year
b) Amount unspent, if any NIL
c) Manner in which the amount spent Given below
during the financial year
SL. CSR project Sector in Project or programs Amount outlay Amount spent on the Cumulative Amount
No. or activity which the (1)Local area or other (budget)project projects or programs expenditure up spent Direct
identified project is (2) specify the state or programs wise Subhead: (1) Direct to the reporting or through
covered and District where Expenditure on the period implementing
projects or programs projects or program agency
was undertaken (2) Overhead
(i) Educational Education Lakshmangarh Rs. 1,01,00,000/- Rs. 1,01,00,000/- Rs. 1,01,00,000/- Through
(Education (Rajasthan) Implementing
to girl child) Agency Mody
Education
Foundation
6. In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any
part thereof, the Company shall provide the reasons for not spending the amount in the Board Report. - Not Applicable
7. The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives
and policy of the Company.
A.K.D. Singh Biswajit Choudhuri

Executive Director (Technical) Chairman- CSR Committee
DIN: 07160198 DIN: 00149018
Place: Kolkata
Date: the 18th day of November 2020
11
Annexure - 2
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2020
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]
To
The Members,
HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED (hereinafter called “the Company”). Secretarial Audit was
conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
The Company’s Management is responsible for preparation and maintenance of secretarial and other records and for devising
proper systems to ensure compliance with the provisions of applicable laws and Regulations.
Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company
and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial
audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on 31st March,
2020,generally complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and
compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the
financial year ended on 31st March, 2020, to the extent applicable, according to the provisions of:
i) The Companies Act, 2013 (as amended) (the Act) and the Rules made thereunder;
ii) The Securities Contracts (Regulation) Act, 1956 and Rules made thereunder(Not applicable to the Company during the Audit
Period);
iii) The Depositories Act, 1996 and Regulations and Bye-laws framed thereunder;
iv) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct investment and External Commercial Borrowings;
v) The Regulations and Guidelines prescribed under the Securities & Exchange Board of India Act, 1992 (“SEBI Act”) or by SEBI
(Not applicable to the Company during the Audit Period).;
i) Other than fiscal, labour and environmental laws which are generally applicable to all manufacturing companies, the following
laws/acts are also, inter alia, applicable to the Company:
For Jute Unit-
(a) The Jute Packaging Materials (Compulsory use in Packaging Commodities) Act, 1987
(b) The Jute Manufactures Development Council Act, 1983
(c) The Jute Manufactures Cess Act, 1983
(d) The National Jute Board Act, 2008
(e) The Jute Manufacturer’s Development Council (Procedural) Rules, 1984
(f) The Indian Boilers Act, 1923
For Chemical Unit-
(a) The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989 and Amendment Rule, 2000
(b) The Chemical Accidents (Emergency Planning, Preparedness and Response) Rules, 1996
(c) The Public Liability Insurance Act, 1991 and 1992
(d) The Hazardous Waste (Management and Handling) Rule, 1989 (Amended 2000 & 2003)
(e) The Batteries (Management and handling) Rules, 2001
(f) The Static & Mobile Pressure Vessels (SMPV) Rules, 1981
(g) The Petroleum Act, 1934 & Petroleum Rules, 2002
(h) The Gas Cylinder Rules, 2004
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company
Secretaries of India.
During the period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above.
We further report that:
12
a) The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the Act.
b) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items
before the meeting and for meaningful participation at the meeting.
c) None of the directors in any meeting dissented on any resolution and hence there was no instance of recording any dissenting
member’s view in the minutes.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, the Company had passed the following special resolution which needs mention:
a) To re-appoint Shri Satish Kapur (DIN: 00051163), as an Independent Director of the Company for a Second term of 5 years.
b) To re-appoint Shri Biswajit Choudhuri(DIN:00149018), as an Independent Director of the Company for a Second term of 5 years.
c) To re-appoint Dr. Ranjan Ghosh ( DIN: 03094522) as an Independent Director of the Company for a Second term of 5 years.
d) To re-appoint Smt. Archana Agarwal (DIN 07144282) as an Independent Director of the Company for a Second term of 5 years.
This report is to be read with our letter of even date which is annexed as Annexure – I which forms an integral part of this report.
For MKB & Associates
Company Secretaries
Sonal Sarda
(Partner)
ACS no. 60192
COP no. 23418
Date: The 17th day November, 2020 FRN: P2010WB042700
Place: Kolkata UDIN: A060192B001239414
Annexure – I
To
The Members,
Our report of even date is to be read along with this letter.
1. It is management’s responsibility to identify the Laws, Rules, Regulations, Guidelines and Directions which are applicable to the
Company depending upon the industry in which it operates and to comply and maintain those records with same in letter and in
spirit. Our responsibility is to express an opinion on those records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the process and practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management’s Representation about the compliance of Laws, Rules, Regulations,
Guidelines and Directions and happening events, etc.
5. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company.
Note: Due to continuing COVID-19 pandemic, for carrying on and completion of the Audit, documents/details have been provided by
the Company through electronic mode and the same have been verified by us.
For MKB & Associates

Company Secretaries
Sonal Sarda
(Partner)
ACS no. 60192
COP no. 23418
Date: The 17th day November, 2020 FRN: P2010WB042700
Place: Kolkata UDIN: A060192B001239414
13
Annexure - 3
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO AS
REQUIRED UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 READ WITH RULE 8(3) OF THE COMPANIES
(ACCOUNTS) RULES, 2014
A) CONSERVATION OF ENERGY:
i) the steps taken or impact on conservation of energy:
The Company is continued to give major emphasis for conservation of energy and the measures taken in the previous
year were continued. The significant energy conservation measures during the year were as follows:
Old motors replaced by energy efficient Motors, Installation of new capacitors has resulted in the improvement of
the average power factor. Replacement of High Watt MLL well luminaries with Low Watt LED luminaries. Installation
of Variable Frequency Drive at Cooling water pump to save energy by reducing the RPM at desired load. The old
transformer replaced with new energy efficient transformer. Substitution of Natural Gas in Boilers instead of Furnace
Oil has resulted in savings. Improvement in energy efficiency by replacement of lighting equipment with more efficient
LED Luminaries.
ii) The steps taken by the company for utilising alternate sources of energy: The Company is exploring the possibilities
for use of solar power.
iii) The capital investment on energy conservation equipment’s: NIL
B) TECHNOLOGY ABSORPTION:
i) Efforts made towards technology absorption
The Company has successfully absorbed and adapted the technology for the manufacture of Hydrogen Cyanide,
Sodium Cyanide, Potassium Cyanide and Diphenyl Guanidine. The products manufactured by us meet the international
standards of quality and are well accepted in local as well as international market. We are continuously working on
improvement of yield, Specific Consumption & Quality. We have successfully exploited our own R&D based processes
for the manufacture of various HCN and Sodium Cyanide based products, e.g. Sodium/ Potassium Ferrocyanide,
Sodium Dicyanamide, Mandelonitrile, Meta Phenoxy Benzaldehyde Cyanohydrin, Methyl Ethyl Ketone Cyanohydrin,
Cyclo Hexanone Cyanohydrin, Acetone Cyanohydrin etc.
Company has also successfully implemented the R&D based processes for the treatment of effluent generated in the
manufacturing processes & at Utility plant and reuse the treated effluent in the cooling tower and in the manufacturing
process.
ii) The benefits derived like product improvement, cost reduction, product development or import substitution.
New products based on Hydrogen Cyanide and Cyanide based chemicals has been added in the product line of
the Company which will increase turnover and profitability of the Company. Product improvement & effective cost
reduction enabled us to pass on substantial benefits to customers, improvement of quality, consumption and yield of
finished goods, saving in energy consumption and development of some new products etc.
iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)
Sl. Technology Year of Status regarding If not fully absorbed ,areas where absorption has not taken
No. Imported Import absorption place and the reason thereof
N.A N.A N.A N.A N.A

14
iv) The expenditure incurred on Research and Development (Rs. ‘000)
i) Capital Nil
ii) Recurring 24 60
iii) Total 24 60
iv) Total R&D expenditure as % of turnover 0.03 %
C FOREIGN EXCHANGE EARNING AND OUTGO:
Foreign Exchanged earned in terms of actual inflows Rs. NIL
Foreign Exchange outgo in terms of actual outflows Rs. 43 71 17
A. K. D. Singh V. A. Mody
Executive Director (Technical) Director
DIN: 07160198 DIN: 00193192
Place: Kolkata
Date : The 18th day of November, 2020
15
INDEPENDENT AUDITORS’ REPORT
TO
THE MEMBERS OF
Report on the Standalone Financial Statements
Qualified Opinion
We have audited the accompanying Standalone Financial Statements of Hindusthan Engineering & Industries Limited (“the company”),
which comprise the Balance Sheet as at 31st March, 2020, the Statement of Profit and Loss (including Other Comprehensive Income),
the Cash Flow Statement and the Statement of Changes in Equity for the year ended on that date, and notes to the financial statements,
including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “Standalone Financial
Statements”).
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described
in the Basis for Qualified Opinion Paragraph the aforesaid Standalone Financial Statements, give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of
affairs of the company as at 31st March, 2020, and its Statement of Profit and Loss (including other comprehensive income), its cash flows
and the statement of changes in equity for the year ended on that date.
Basis for Qualified Opinion
a. Note No. 29 in respect of accounting of effect of certain reliefs/concessions which are yet to be approved by respective authorities. In
view of pendency in disposal of such claims, we are unable to comment the impact, if any, thereof on the profit for the year & reserve
& surplus at the year end.
b. Note No. 34 in respect of Loan to the subsidiary company, Note No. 36 in respect of Loans given, Note No. 38 in respect of Trade
Receivables & Advances, whereby the extent of amounts recoverable there against is presently not ascertainable & therefore provision
there against & consequential impact thereof, if any, on the profit for the year & reserves & surplus could not be ascertained & commented
upon by us.
These matters were also qualified in our report on the financial statements for the year ended 31st March, 2019.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our Qualified opinion.
Responsibility of Management for Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect
to the preparation of these Standalone financial statements that give a true and fair view of the financial position, financial performance
including other comprehensive income ,cash flows and Statement of changes in equity of the company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with
Companies(Indian Accounting Standard) rules ,2015 as amended. This responsibility also includes the maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding of the assets of the company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and
estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the Standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone financial statements as a whole are free from material
16
INDEPENDENT AUDITORS’ REPORT (Contd.)
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these Standalone financial statements.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-
section (11) of section 143 of the Companies Act, 2013, we give a statement on the matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable, as under:
i) The company is maintaining proper records showing full particulars including quantitative details & situation of fixed assets. On the
basis of available records checked by us as well as according to information available, the physical verification of fixed assets has
been carried out by the management during the year in a phased manner according to a regular programme designed to cover all
the items over a period of three years which, in our opinion, is reasonable having regard to the size of the company and the nature
of its assets. As far as verified & reconciled during the year, no material discrepancies have been noticed on such verification. Based
on the audit procedure applied by us & as per information available and explanations given to us, we report that the title deeds of
immovable properties are held in the name of the company.
ii) The management has conducted physical verification of inventory at reasonable intervals. Discrepancies noticed on such verification
of inventory as compared to book records, which were not material, have been appropriately adjusted in the accounts.
iii) The company has given loans to companies, firms & other parties covered in the register maintained under section 189 of the
Companies Act, 2013. Based on the audit procedure applied by us & as per information available and explanations given to us, we
are of the opinion that the terms & conditions of such loans granted during the year are not prejudicial to the interest of the company.
According to the information available & explanation given to us, the repayment of principal amount & interest is not being received
regularly. The total amount of loan & interest thereon remaining overdue for more than 90 days was Rs. 9,253.38 lakh. We have
been told that necessary persuasive & other steps for recovery of the same are being taken by the company for recovery of the
same.
iv) According to the information available & explanations given to us, the company has complied with the provisions of Section 185 &
186 of the Act, wherever applicable, in respect of loans given and investments made during the year. We have been told that no
guarantee or security has been issued by the company.
v) According to the information available & explanations given to us, the company has not accepted any deposit from public within the
meaning of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and rules framed there under.
vi) Based on the audit procedure applied by us & as per information available and explanations given to us, we report that the company
has been maintaining cost records pursuant to the Companies (Cost Records and Audit) Rules 2014 specified by the Central
Government of India under section 148 (1) of the Companies Act, 2013 .We have, however, not made detailed examination of the
same to determine whether they are complete & accurate.
vii) a) According to the records of the company, the company is generally regular in depositing undisputed statutory dues including
Income Tax, Provident Fund, ESI, Custom Duty, GST with appropriate authorities. According to the information available &
explanation given to us, there are no undisputed statutory dues outstanding as at the year-end for a period of more than six months
from the date of the same becoming payable.
17
b) According to the information available & explanations given to us, following statutory dues were outstanding as at the year end
on account of disputes pending before appropriate authorities:
Amount
Period to which the amount
Name of Statute Nature of dues (Rupees in Forum where dispute is pending
relates
‘000)
W. B. Sales Tax Act, 1941 Sales Tax 1 09 54 1993-94 Appellate & Revisional Board
W. B. Sales Tax Act, 1994 Sales Tax 2 15 49 2000-01, 2003-04 Appellate & Revisional Board
W. B. Sales Tax Act, 1994 Sales Tax 1 21 78 2004-05 Additional Commissioner
Maharashtra VAT Act, 2002 Sales Tax 6 18 2014-15 Commissioner Appeal
Maharashtra VAT Act, 2002 Sales Tax 2 34 2012-13 Commissioner Appeal
W.B. VAT Act, 2003 Sales Tax 16 76 41 2005-06, 2011-16 Additional Commissioner/ Sr. JCCT/DC
CST Act, 1956 Sales Tax 8 89 56 1987-88, 1993-94, Appellate & Revisional Board
1998-2001, 2003-04,
2005-2018
CST Act, 1956 Sales Tax 5 1981-82 High Court
BFST Act, 1941 Sales Tax 1 02 1975-76,1984-85 Deputy Commissioner/ Assist. Commissioner
WBST Act, 1954 Sales Tax 77 1987-88 Appellate & Revisional Board
M.P. Sales Tax Act Sales Tax 3 85 03 1990-97 Appellate Authorities
Central Excise Act, 1944 Excise Duty 93 10 1998-99,2000-02, Commissioner (Appeals)
2007-2017
Central Excise Act, 1944 Excise Duty 15 14 58 1986-88,1994-2004, CESTAT
2008-09, 2009-2015
Central Excise Act, 1944 Excise Duty 4 55 1992-95 High Court
Central Excise Act, 1944 Excise Duty 75 04 2013-17 Asst. Commisioner
Service Tax Service Tax 46 56 2007-12 CESTAT
Income Tax Act,1961 Income Tax 2 14 15 2016-17 CIT(A)
i) Based on the audit procedures applied by us & as per the information available & explanations given by the management, we are of
the opinion that the company has not defaulted in repayment of dues to any financial institution, bank or debenture holders except
as under:
- Rs. 100.55 lakhs payable to WBIDC which were due for more than one year and were not repaid for the reasons mentioned in
Footnote (ii) to Note No. 13 attached to the financial statements.
- Rs. 223.25 lakhs payable on account of interest free sales tax loan which was repayable in equal half yearly instalments w.e.f.
4th September 2015.
ii) According to the information available & explanations given to us, the company has not raised any money by way of initial public
offer or further public offer. Term loans raised during the year have been utilized for the purpose for which they are obtained.
iii) During the course of our examination of the books of account and records of the company carried out in accordance with the
generally accepted auditing practices in India and according to the information available & explanations given to us, we have neither
come across any incidence of fraud by or on the company by its officers or employees nor have we been informed of any such case
by the management.
iv) According to the information available & explanations given to us, the company has not paid any Managerial remuneration during
the year.
v) The company is not a Nidhi Company and hence reporting under clause (xii) of paragraph 3 of the Order is not applicable to the
Company.
vi) Based on our audit procedures applied by us & as per the information available & explanations given to us, the company has
complied with provisions of section 177 & 188 of the Act in respect of transactions with the related parties and details thereof have
been disclosed in the Standalone Financial Statements as required by the applicable accounting standards.
vii) The company has not made any preferential allotment or private placement of shares or convertible debentures during the year and
hence reporting under clause (xiv) of Paragraph 3 of the Order is not applicable to the Company.
viii) Based on the audit procedures applied by us & as per the information available & explanations given by the management, we are
of the opinion that the company has not entered into any non-cash transactions with directors or persons connected with them and
hence reporting under clause (xv) of Paragraph 3 of the Order is not applicable to the Company.
ix) Based on the audit procedures applied by us & as per the information available & explanations given by the management, we are
of the opinion that the company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
18
2. As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit.
b. Except for the effects of the matters described in the basis for qualified opinion paragraph above, in our opinion proper books of
account as required by law have been kept by the company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Cash Flow Statement and Statement
of changes in equity dealt by this report are in agreement with the books of account.
d. Except for the effects of the matter described in the basis for qualified opinion paragraph above, in our opinion, the aforesaid
Standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules 2015 as amended.
e. The matters described in the basis for qualified opinion paragraph above, in our opinion, may have an adverse effect on the
functioning of the company.
f. On the basis of written representations received from the directors as on 31 March, 2020, taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March, 2020, from being appointed as a director in terms of Section 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness
of such controls, refer to our separate report in Annexure ‘A’.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone financial statements -
Refer Note No. 30 to the Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Company.
For S. RASTOGI & ASSOCIATES,

Chartered Accountants
(Firm Registration no. – 318123E)
Place: Kolkata
Dated: The 18th day of November, 2020.
UDIN: 20053823AAAADB4207
(CA S. RASTOGI)
Proprietor
Membership No. – 053823
19
Annexure- A to the Auditors’ Report
Report on the Internal Financial Controls under Clause (i) sub –section 3 of Section 143 of the
Companies Act, 2013
We have audited the internal financial controls over financial reporting of Hindusthan Engineering & Industries Limited (‘the Company’)
as of 31st March, 2020 in conjunction with our audit of the standalone financial statements of the Company for the year ended on the date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s Policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ‘Guidance
Note’) and the standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting
were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors’ judgement,
including the assessment of the risks of material misstatement of the financial statements, whether due to fraud and error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company asset;
(2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial
statements,
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
20
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively as at 31st March, 2020, based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note
on audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Place: Kolkata
Dated: The 18TH November, 2020
(CA S. RASTOGI)
PROPRIETOR
21
STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2020
(Rupees in '000)
PARTICULARS Note No. As at March 31, 2020 As at March 31, 2019
ASSETS
Non Current Assets
Property, Plant and Equipment 2 3 17 69 79 3 45 91 78
Capital Work-in-Progress 3 39 36 52 26 11 07
Intangible Assets 2 13 91 70 13 91 19
Financial Assets
- Investments 4 96 59 60 1 21 93 42
Other Assets 5 50 40 90 47 69 71
Total Non Current Assets 5 17 98 51 5 55 57 17
Current Assets
Inventories 6 2 40 20 21 2 56 66 79
Financial Assets
- Investments 4 6 30 -
- Trade Receivables 7 1 54 73 41 1 37 90 84
- Cash and Cash Equivalents 8 2 26 18 49 1 66 29 54
- Loans 9 1 30 34 65 1 15 33 62
- Other Financial Assets 10 1 11 44 85 1 10 04 32
Other Assets 5 61 06 42 70 27 60
Total Current Assets 9 24 04 33 8 56 52 71
Total Assets 14 42 02 84 14 12 09 88
EQUITY AND LIABILITIES
Equity
Equity Share Capital 11 15 00 08 15 00 08
Other Equity 12 10 45 00 14 10 20 68 55
Total Equity 10 60 00 22 10 35 68 63
Liabilities
Non Current Liabilities
Financial Liabilities
- Borrowings 13 47 84 86 48
Deferred Tax Liabilities (Net) 16 23 31 71 34 95 30
Provisions 17 59 46 21 60 09 27
Total Non Current Liabilities 83 25 76 95 91 05
Current Liabilities
- Borrowings 13 1 42 63 13 1 15 19 19
- Trade Payables 14
-Dues to micro & small enterprises - -
-Dues to others 1 00 31 94 96 41 27
- Other Financial Liabilities 15 27 41 16 28 46 23
Provisions 17 7 96 41 8 16 77
Other Liabilities 18 20 44 22 32 26 74
Total Current Liabilities 2 98 76 86 2 80 50 20
Total Liabilities 3 82 02 62 3 76 41 25
Total Equity & Liabilities 14 42 02 84 14 12 09 88
Significant Accounting Policies 1

The accompanying Notes No. 2 to 54 are an integral part of these Standalone Financial Statements
.
As per our Report of even date For and on behalf of the Board of Directors
For S Rastogi & Associates
Firm Registration No. 318123E V A Mody
Director
DIN : 00193192
CA S. Rastogi
Proprietor
Membership No: 053823 P K Himatsingka R K Agarwal A K D Singh
Place: Kolkata Chief Financial Officer Company Secretary Executive Director (Tech.)
Dated: the day of 18th November, 2020 DIN : 07160198
22
STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2020
(Rupees in '000)
PARTICULARS Note No. Year ended Year ended
March 31, 2020 March 31, 2019
INCOME
Revenue from Operations 19 8 10 18 52 8 79 34 50
Other Income 20 21 50 88 31 08 05
Total Income 8 31 69 40 9 10 42 55
EXPENSES
Cost of Materials Consumed 21 4 70 71 78 5 08 57 52
Purchase of Stock-in-Trade 22 35 69 82 4 20 42
Changes in Inventories of Finished Goods, Work-in-Progress and Stock in Trade 23 (39 24 17) (3 64 25)
Employee Benefit Expenses 24 1 24 79 46 1 28 56 44
Finance Cost 25 14 24 07 11 67 62
Depreciation and Amortisation Expenses 26 32 57 53 32 74 92
Other Expenses 27 1 73 87 51 1 63 26 00
Total Expenses 8 12 66 00 8 45 38 67
Profit/(Loss) before tax 19 03 40 65 03 88

Income Tax Expense
- Income Tax realated to earlier years (17 41) 2 26 14
- Current Tax 8 28 80 25 00 00
- Deferred Tax (11 63 59) (1 93 22)
Total Tax Expense (3 52 20) 25 32 92
Profit/(Loss) after tax 22 55 60 39 70 96
Other Comprehensive Income

Items that may be reclassified to the Statement of Profit and Loss - -
Items that will not be reclassified to the Statement of Profit and Loss:
- Remeasurements of the Defined Benefit Plans 2 35 19 3 61 26
- Income tax relating to items that will not be reclassified to the Statement of Profit and Loss (59 20) (1 26 24)
Other Comprehensive Income/(Loss) for the year, Net of Tax 1 75 99 2 35 02
Total Comprehensive Income/(Loss) for the year 24 31 59 42 05 98
Earnings per Equity Share (in Rupees) 28

(Nominal value of shares Rs.10 each)
- Basic 15.04 26.47
- Diluted 15.04 26.47

The accompanying Notes No. 2 to 54 are an integral part of these Standalone Financial Statements
Director
DIN : 00193192
CA S. Rastogi
Proprietor
23
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020
(Rupees in ’000)
PARTICULARS Year ended March 31, 2020 Year ended March 31, 2019
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before tax 19 03 40 65 03 88
Adjustment for :
Depreciation & Amortization Expenses 32 57 53 32 74 92
(Profit)/Loss on sale/discard of Fixed Assets (net) (3 72) (26 15)
(Gain)/Loss on Foreign Exchange Fluctuation (22 70) (1 09 39)
Interest (net) (6 79 53) (16 20 41)
(Gain)/Loss on Sale of Investments 4 36 03 29 87 61 (53) 15 18 44
Operating Profit before working capital changes 48 91 01 80 22 32
Adjustment for :
Trade and other receivables (19 69 18) 6 57 47
Inventories 16 46 58 (49 47 51)
Trade and other payables (7 45 15) (20 68 46)
Direct Taxes paid (net of refunds) (6 74 52) (17 42 27) (7 13 03) (70 71 53)
Net Cash flow from operating activities 31 48 74 9 50 79
B. CASH FLOW FROM INVESTING ACTIVITIES

(Increase)/Decrease in Capital Work-in-Progress (13 25 45) 93 41
Purchase of Fixed Assets (5 22 38) (13 49 67)
Sale / discard of Fixed Assets 90 05 1 41 76
Purchase of Investments (6 30) (95 18 97)
Sale of Investments 20 97 79 5 46 47
Loan/Deposit Given (Net) (9 01 03) 57 78 80
Interest Received 21 03 60 27 88 03
Gain/(Loss) on Foreign Exchange Fluctuation 22 70 1 09 39
Net Cash flow from investing activities 15 58 98 (14 10 78)
C. CASH FLOW FROM FINANCING ACTIVITIES

Changes in Share Capital - -
Receipt/(Repayment) of Borrowings (Net) 27 05 30 31 38 18
Interest Paid (14 25 32) (10 81 31)
Foreign Exchange Rate difference on borrowings 1 25 (86 31)
Net Cash flow from financing activities 12 81 23 19 70 56
Net increase in Cash and Cash Equivalents 59 88 95 15 10 57

Cash and Cash Equivalents : Opening Balance 1 66 29 54 1 51 18 97
Cash and Cash Equivalents : Closing Balance [Refer Note No. 8] 2 26 18 49 1 66 29 54
Supplementary Information
Restricted Cash and Cash Equivalents 1 43 18 44 1 35 76 98
Director
DIN : 00193192
CA S. Rastogi
Proprietor
24
STANDALONE STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2020
A. EQUITY SHARE CAPITAL (Rupees in '000)
Equity Shares
PARTICULARS Amount in
No. of Shares
Rupees
Balance as at April 1, 2018 15 00 07 82 15 00 08
Changes in Equity Share Capital during the year - -
Balance as at March 31,2019 15 00 07 82 15 00 08
B. OTHER EQUITY (Rupees in '000)

Capital Other
Securities General Retained
PARTICULARS Redemption Comprehensive Total
Premium Reserve Earnings
Reserve Income
Balance as at April 1, 2018 10 41 36 4 36 31 30 1 87 44 03 3 48 81 56 (4 35 68) 9 78 62 57
Other Comprehensive Income/
(Loss) for the year - - - - 2 35 02 2 35 02
Profit for the year - - - 39 70 96 - 39 70 96
Balance as at March 31,2019 10 41 36 4 36 31 30 1 87 44 03 3 88 52 52 (2 00 66) 10 20 68 55
Other Comprehensive Income/
(Loss) for the year - - - - 1 75 99 1 75 99
Balance as at March 31,2020 10 41 36 4 36 31 30 1 87 44 03 4 11 08 12 (24 67) 10 45 00 14
Footnote:
For purpose & nature of Other Equity, refer Footnote to Note No. 12
Director
DIN : 00193192
CA S. Rastogi
Proprietor
25
NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2020
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Corporate Information
Hindusthan Enginnering Industries Limited is a public Company domiciled in India & incorporated under the provision of the erstwhile Companies
Act, 1956.It is mainly engaged in production of Jute goods, Chemicals, Railway Wagons & Railway Rolling Stock.
The Registered Office of the Company is situated at 27, Sir R N Mukherjee Road, Kolkata - 700 001
Statement of Compliance
These financial statements comply in all material aspects with Indian Accounting Standard (Ind AS) notified under the Companies (Indian Accountings
Standard) Rules, 2015 (as amended) read with section 133 of the Companies Act, 2013 (“the Act”) and other relevant provisions of the Act.
Basis of Preparation
The Financial Statements have been prepared under the historical cost convention on accrual basis except for certain financial instruments that
are measured in terms of relevant Ind AS at fair values/ amortized costs at the end of each reporting period.
The standalone Financial Statements are presented in Indian Rupees and all values are rounded off to the nearest to thousands except otherwise
stated.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date under current market conditions.
The company categorizes Assets and Liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed
for such measurement:
a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) Level 2: inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.
c) Level 3: inputs for the assets or liability which are not based on observable market data.
Property, Plant and Equipment
Property, Plant and Equipment (PPE) are stated at cost of acquisition or deemed cost on date of transition less accumulated depreciation and
impairment losses, if any. Cost of an asset comprises of purchase price, borrowing cost and any other cost directly attributable to bringing the assest
to its working condition for its intended use.
Capital work in progress includes machinery to be installed, construction and erection materials, borrowing costs, unallocated pre-operative and
other expenditures directly attributable towards construction and erection of the assets.
Depreciation on PPE commences when the assets are ready for their intended use.Depreciation has been provide on straight line method as per
the useful life specified under Schedule II to the Companies Act, 2013. Depreciation on incremental cost arising on account of exchange difference
is computed prospectively with respect to the residual life of respective asset.
Leasehold Land is amortised over the period of lease.
Intangible Assets
Intangible assets are amortized over the useful life using straight line method and assessed for impairment whenever there is an indication of the
same. Accordingly, Intangible assets have been amortized over a period of 3 to 5 years on straight line basis.
Impairment of Tangible and Intangible Assets
Impairment of assets are assessed at each Balance Sheet date and loss is recognised whenever the recoverable amount of an asset is less than its
carrying amount. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable
amount.
Financial Assets and Liabilities
Financial assets and financial liabilities (financial instruments) are recognized when company becomes a party to the contractual provisions of the
instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue
of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
26
NOTES TO THE STANDALONE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2020 (Contd.)
The financial assets and financial liabilities are classified as current if they are expected to be realised or settled within operating cycle of the
company which is generally taken as 12 month otherwise these are classified as non- current.
The classification of financial instruments whether to be measured at amortized cost, at Fair Value Through Profit and Loss (FVTPL) or at Fair Value
Through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate.
Classification of financial instruments are determined on initial recognition.
(i) Financial assets and financial liabilities measured at Amortized Cost
Financial assets held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual
terms of the financial assets give rise on specified dates to cash flows are measured at amortized cost.
The financial assets and financial liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR) method.
(ii) Financial Asset at Fair Value Through Other Comprehensive Income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial
recognition, they are measured at fair value and changes therein are recognized directly in other comprehensive income.
(iii) Financial Assets or Liabilities at Fair Value Through Profit or Loss (FVTPL)
Financial instruments which do not meet the criteria of amortized cost or fair value through other comprehensive income are measured at Fair Value
through Profit or Loss.
Impairment of financial assets
A financial asset is assessed for impairment at each reporting date. A financial asset is considered to be impaired if objective evidence indicates
that one or more events have had a negative effect on the estimated future cash flow of that asset.
The company measures the loss allowance for a financial assets at an amount equal to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since
initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.
However, for trade receivable or contract assets that result in relation to revenue from contracts with customers, the company measures the loss
allowance at an amount equal to lifetime expected credit losses.
De-recognition of financial instruments
The company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
Financial liabilities are derecognized if the company’s obligations specified in the contract expire or are discharged or cancelled. The difference
between the carrying amount of the financial liability/assets derecognized and the consideration there aganist is recognized in Statement of Profit
and Loss.
Inventories
Inventories are stated at lower of cost & net realisable value. Inventory of finished goods, where the products are made under specific orders, are
recognized only on approval of the product by the prospective buyer. The cost for the purpose of valuation of raw materials is being computed on
FIFO basis except in case of Jute & Chemical Units where weighted average method is being followed. Cost for the purpose of valuation of stores
and spares is computed on weighted average method. Cost of work-in-progress and finished goods represents estimated cost of raw materials,
direct labour and appropriate portion of factory overhead in most of the cases.
The liability for GST on the bonded materials as at the end of the year are duly provided for. No provision is made of GST on finished goods as at
the year end.
Foreign Currency Transactions
Transactions in foreign currencies are accounted for at the exchange rate prevailing at the time of the transaction. Foreign currency monetary
assets and liabilities at the year end are translated using closing exchange rates. The loss or gain thereon and also on the exchange differences on
settlement of foreign currency transactions during the year (except those relating to the fixed assets which are adjusted to the cost of the assets)
are recognised as income or expense and are adjusted to the Statement of Profit and Loss.
27
Revenue
Sales
Sales exclude GST and are accounted for on passing of property of goods irrespective of actual despatches. Rebates, discounts, claims and other
non-recoverables are excluded therefrom.
Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest income is accounted on time proportion basis taking
into account amount outstanding & rate applicable unless otherwise stated. Insurance claims/ other claims are accounted as and when admitted/
determined.
GST Credit
GST Credit admissible against GST paid on goods / Fixed Assets are accounted for by reducing the purchase cost of the related goods / Fixed Assets.
Employee Benefits
Contributions to defined Schemes such as Provident Fund / Pension Fund, Employees State Insurance Scheme are charged to Statement of Profit
& Loss on accrual basis. The Company also provides for gratuity and leave encashment in accordance with projected Unit Credit Method based on
actuarial valuation carried out as at the balance sheet date.
Borrowing Cost
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in
the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE)
which are capitalized to the cost of the related assets. A qualifying PPE is an asset , that necessarily takes a substantial period of time to get ready
for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
Research and Development
Expenditure on research and development except capital expenses which are shown as additions to fixed assets, are charged to Statement of Profit
and Loss in the year in which these are incurred.
Leases
Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease.
The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as lessor
Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the leased item are classified and
accounted for as finance lease. Lease rental receipts are apportioned between the finance income and capital repayment based on the implicit
rate of return. Contingent rents are recognized as revenue in the period in which they are earned.
Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease except where scheduled increase in
rent compensates the Company with expected inflationary costs.
Company as Lessee
The Company’s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset
through the period of the lease and (iii) the Company has the right to direct the use of the asset.
28
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over
the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets as below:
Right of Use Assets
The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right of use assets are measured at cost, less any accumulated depreciation and impairment loss, if any, and adjusted for any remeasurement of
lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated useful lives of the underlying assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset. The right of use assets are also subject to impairment.
Government Grants
Government grants are recognized on systematic basis when there is reasonable certainty of realization of the same. Revenue grants including
subsidy/rebates are credited to Statement of Profit and Loss Account under “Other Income” or deducted from the related expenses for the period
to which these are related. Grants which are meant for purchase, construction or otherwise for acquisition of non current assets are credited to
respective assets.
Taxes on Income
Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred tax
resulting from “timing difference” between taxable and accounting income is accounted for using the tax rates and laws enacted or substantively
enacted on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the
asset will be realized in future. Deferred Tax Assets & Deferred Tax Liabilities have been offset as they relate to the same governing tax laws.
Provisions, Contingent liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent
Assets are neither recognized nor disclosed in the financial statement.
Earning Per Share
Basic earning per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number
of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit attributable to the equity holders of
the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
Cash Flow
Cash flows are reported using indirect method, whereby profit for the year is adjusted for the effects of transactions of non-cash nature and/or for
items of income & expenses associated with investing and financing activities. The cash flows from operating, investing & financing activities of
the company are segregated.
29
30
Note : 2 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS (Amount in '000)
PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS
Electrical
Right Installation, Motor Total Goodwill Total
Land Land - Tools & Furniture Computer
Particulars of Use Railway Water & Cars & Tangible on Intangible
Freehold Leasehold Buildings Machinery Implements & Fixture Software
Assets Siding Sanitation Vehicles Assets Merger Assets
System
Gross Carrying amount as at
March 31, 2018 13 61 28 1 97 11 - 24 46 25 4 12 67 28 18 84 72 72 9 70 1 11 61 4 86 34 4 59 71 13 27 95 13 90 62 14 18 57
Addition - - - 1 21 46 10 97 73 - 28 18 1 04 20 98 79 85 13 49 24 43 - 43
Disposal/Adjustments - - - 3 50 1 03 46 - - - 12 54 85 1 61 93 - - -
March 31, 2019 13 61 28 1 97 11 - 25 64 21 4 22 61 55 18 84 1 00 90 10 74 1 32 47 5 11 34 4 71 58 44 28 38 13 90 62 14 19 00
Reclassified on adoption of
Ind AS 116 "Leases" - (1 97 11) 1 85 69 - - - - - - - (11 42) - - -
Addition - - - 5 37 4 76 12 - 10 19 1 62 4 51 23 78 5 21 59 79 - 79
Disposal/Adjustments - - - - 1 59 04 - - - - 25 81 1 84 85 - - -
March 31, 2020 13 61 28 - 1 85 69 25 69 58 4 25 78 63 18 84 1 11 09 12 36 1 36 98 5 09 31 4 74 83 76 29 17 13 90 62 14 19 79

Depreciation & Amortization
As at April 1, 2018 - 8 60 - 5 58 57 85 36 33 2 95 8 36 2 05 33 73 1 92 51 93 43 10 22 77 - 22 77
Charge for the year - 2 82 - 1 75 64 30 09 08 65 5 28 64 11 82 63 95 32 69 88 5 04 - 5 04
Disposal/Adjustments - - - 3 33 4 27 - - - 11 38 61 46 32 - - -
Total Depreciation/
Amortisation upto
March 31, 2019 - 11 42 - 7 30 88 1 15 41 14 3 60 13 64 2 69 45 44 2 17 85 1 25 66 66 27 81 - 27 81
Reclassified on adoption of
Ind AS 116 “Leases” (11 42) - - - - - - - - (11 42) - - -
Charge for the year - - 2 77 1 71 74 30 00 53 65 6 94 83 13 18 60 61 32 57 25 28 - 28
Disposal/Adjustments - - - - 77 55 - - - - 20 97 98 52 - - -
Total Depreciation/
Amortisation upto
March 31, 2020 - - 2 77 9 02 62 1 44 64 12 4 25 20 58 3 52 58 62 2 57 49 1 57 13 97 28 09 - 28 09
Net Block
As at March 31, 2019 13 61 28 1 85 69 - 18 33 33 3 07 20 41 15 24 87 26 8 05 87 03 2 93 49 3 45 91 78 57 13 90 62 13 91 19
As at March 31, 2020 13 61 28 - 1 82 92 16 66 96 2 81 14 51 14 59 90 51 8 84 78 36 2 51 82 3 17 69 79 1 08 13 90 62 13 91 70
Footnote :
i) Land includes 49 acres which is jointly held with The North Brook Jute Co Ltd in which the Company's share is approx 50% i.e. 24.462 acres. The proportionate original cost of jointly held land is
Rs 4 71.
ii) Capital Subsidy received during the year Rs.77 40 (PY - Rs.32 58) in respect of acquisition/construction of Building and Machinery has been included in disposal/adjustment and depreciation for the
year has been calculated on the reduced value of respective assets.
iii) The Net block of leasehold land of Rs 1 85 69 ( Gross Block of Rs 1 97 11 & Accumulated Depreciation of Rs 11 42) as on 01.04.2019 has been re classified to " Right of Use Assets on account of
adoption of Ind AS 116" Leases".
Note : 3 CAPITAL WORK IN PROGRESS (Rupees in '000)
Non-Current
PARTICULARS As at March 31, As at March 31,
2020 2019
Capital Work-in-Progress 39 36 52 26 11 07
Total 39 36 52 26 11 07
Note : 4 INVESTMENTS (Rupees in '000)

As at March 31, As at March 31,
PARTICULARS
2020 2019
Non-Current Investments
A. Investment Carried at Cost
Unquoted Equity Shares
i) Subsidiary Company
14,01,520 (PY: 14,01,520) Equity Shares of Rs.10/- each in Hindusthan Vidyut Corporation Ltd. 1 40 50 1 40 50
ii) Associate Company
NIL (PY: 1,26,320) Equity Shares of Rs.10/- each in Kanchan Stocks Pvt. Ltd. - 7 21 82
NIL (PY: 1,21,320) Equity Shares of Rs.10/- each in Superb Finance Pvt. Ltd. - 6 93 25
NIL (PY: 1,20,100) Equity Shares of Rs.10/- each in Support Holdings Pvt.Ltd. - 5 53 84
Nil (PY: 1,22,500) Equity Shares of Rs.10/- each in Unique Stocks Pvt.Ltd. - 5 64 91
Unquoted Preference Shares
9,51,89,700 ( PY: 9,51,89,700 ) Redeemable 1% non-cumulative , non-convertible Preference Share of Rs. 10/ each 95 18 97 95 18 97
in Hindusthan Urban Infrastructure Ltd.
B. Invetsment Carried at Fair Value Through OCI
Other than Associate Company-Unquoted Equity Shares
1,250 (PY: 1,250) equity shares of Rs.10/- each in Woodland Multispeciality Hospital Ltd. 13 13
Total 96 59 60 1 21 93 42
Current Investments
Invetsment Carried at Fair Value Through OCI
Invetsment In Units of Mutual Fund (Unquoted)
HDFC Growth Opportunity Fund -Regular Plan - Growth (Units -7,800, PY: Nil) 6 30 -
Total 6 30 -
Note : 5 OTHER ASSETS (Rupees in '000)

Non-Current Current
PARTICULARS As at March 31, As at March 31, As at March 31, As at March 31,
2020 2019 2020 2019
Security Deposits
- To Related Parties (Note No.41) 2 13 97 2 24 77 10 80 10 80
- To Others 16 32 36 11 66 05 - -
Loans & Advances
- To Employees 70 83 60 42 74 91 80 59
- To Suppliers - - 14 15 78 11 13 00
- To Others 97 - 2 49 18 12 65 57
Other Receivables - - 1 60 69 24 09
Prepaid Expenses - - 77 99 3 96
Assets held for Disposal - - 8 66 8 66
Payment of Income Tax (Net of Provisions) 31 22 63 33 18 33 - 37
Balance with Statutory Authorities 14 14 41 08 41 45 20 56
Total 50 40 90 47 69 71 61 06 42 70 27 60
Footnote:
Payment of Income Tax (Net of Provisions) includes Rs. 10 32 (P.Y. : Rs.10 32) on account of TDS, credit of which is subject to admittance by the Tax
Authorities & is net of Rs. 1 81 69 (P.Y.: Rs. 1 81 69) on account of tax refund received details for which are not available. Adjustment for any short/excess
received & interest included therein shall be made on receipt of such details.
31
Note : 6 INVENTORIES (Rupees in '000)
PARTICULARS
2020 2019
(At lower of cost & net realisable value; as taken, valued and certified by the Management)
- Raw Materials 92 03 17 1 48 95 00
- Stores and Spares 20 27 80 19 08 86
- Loose Tools 3 53 77 3 51 63
- Work-In-Progress 1 09 00 10 72 03 51
- Finished Goods 15 35 37 13 07 79
Total 2 40 20 21 2 56 66 79
Note : 7 TRADE RECEIVABLES (Rupees in '000)

PARTICULARS
2020 2019
Unsecured, Considered Good 1 54 73 41 1 37 90 84
Total 1 54 73 41 1 37 90 84
Note : 8 CASH AND CASH EQUIVALENTS (Rupees in '000)

PARTICULARS
2020 2019
Balances with Banks
- In Current/Cash Credit Account 10 58 73 24 22 08
- In Deposit Account (Margin Money Deposit) 1 41 23 73 1 32 69 94
- In Deposit Account 73 96 34 8 87 30
Cash in hand 39 69 50 22
Total 2 26 18 49 1 66 29 54
Footnote:
i) Balances in Deposit Account (including Margin Money) include Deposit with more than 12 months maturity Rs. 71 95 16 (PY: Rs. 19 07 03)
ii) Balance in Cash Credit / Current Account includes Rs. 1 94 71 (PY: Rs. 3 07 04) lying in accounts earmarked for redemption of Debentures/Shares.
iii) Balances with Banks Rs. 1 99 30 (PY: Rs. 1 94 58) are subject to confirmation.
Note : 9 LOANS (Rupees in '000)

Non-current Current
PARTICULARS As at March As at March As at March As at March
31, 2020 31, 2019 31, 2020 31, 2019
Loans
- To Related Parties (Note No.41) - - 35 22 30 20 22 30
- To Subsidiary Company (Note No.41) - - 8 02 10 8 01 07
- To Others - - 87 10 25 87 10 25
Total - - 1 30 34 65 1 15 33 62
Note : 10 OTHER FINANCIAL ASSETS (Rupees in '000)

Non-current Current
2020 2019 2020 2019
Deposits with Companies - - 11 00 00 17 00 00
Loans & Advances
-To Others - - 1 59 64 1 65 34
Interest Receivable
- from Related Parties (Note No.41) - - 72 69 35 72 31 08
- from Others - - 26 15 86 19 07 90
Total - - 1 11 44 85 1 10 04 32
32
Note : 11 EQUITY SHARE CAPITAL (Rupees in '000)
PARTICULARS Equity Shares of Rs.10/- each Preference Shares of Rs.10/- each
Authorised Share Capital No. of Shares Amount No. of Shares Amount
As at April 1, 2018 20 00 00 00 20 00 00 5 00 00 00 5 00 00
Increase/(decrease) during the year - - - -
As at March 31, 2019 20 00 00 00 20 00 00 5 00 00 00 5 00 00
As at March 31, 2020 20 00 00 00 20 00 00 5 00 00 00 5 00 00
Issued Share Capital
Equity shares of Rs. 10 each issued, subscribed and fully paid No. of Shares Amount
As at April 1, 2018 15 00 07 82 15 00 08
Changes during the year - -
As at March 31, 2019 15 00 07 82 15 00 08
As at March 31, 2020 15 00 07 82 15 00 08
Term/Rights attached to Equity Shares
The company has only one class of shares outstanding viz. Equity Shares having a par value of Rs. 10/- each. Each shareholder is eligible for one vote
per share & is entitled to pro-rata dividend, if any, declared on equity shares. In the event of liquidation, the equity shareholders are eligible to receive the
remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholdings.
As at March 31, 2020 As at March 31, 2019

Details of shareholders holding more than 5% shares in the company
No. of Shares % holding No. of Shares % holding
Hindusthan Consultancy & Services Ltd * 6 05 89 67 40.39% 1 80 23 13 12.01%
Promain Ltd 1 43 41 27 9.56% 1 43 41 27 9.56%
Deutsche Bank Trust Company Americas 97 72 04 6.51% 97 72 04 6.51%
Magnum Traders Limited - - 76 49 00 5.10%
* Out of above, 32,71,234 shares have vested in Hindusthan Consultancy & Services Ltd.by order of Hon’ble NCLT dated 25th November,2019, w.e.f. 1st
April 2018, these shares were held in the name of transferor companies as on the Balance sheet date and have been subsequently transferred in the name
of Hindusthan Consultancy & Services Ltd, the transferee Company.
Note : 12 OTHER EQUITY (Rupees in '000)

PARTICULARS
2020 2019
A. CAPITAL REDEMPTION RESERVE
Balance as at the beginning/end of the year 10 41 36 10 41 36
B. SECURITIES PREMIUM
Balance as at the beginning/end of the year 4 36 31 30 4 36 31 30
C. GENERAL RESERVE
D. RETAINED EARNINGS
Balance as at the beginning of the year 3 88 52 52 3 48 81 56
Net Profit/(Loss) for the year 22 55 60 39 70 96
Balance as at the end of the year 4 11 08 12 3 88 52 52
E. OTHER COMPREHENSIVE INCOME
Balance as at the beginning of the year (2 00 66) (4 35 68)
Other Comprehensive Income for the year 1 75 99 2 35 02
Balance as at the end of the year (24 67) (2 00 66)
Total 10 45 00 14 10 20 68 55
Footnote :
Nature & Purpose of Other Equity:
i) Capital Redemption Reserve represents amount created on account of buyback/redemption of shares in earlier years.
ii) Securities Premium represents amount received in excess of par value of shares issued.
iii) General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes.
iv) Retained Earnings generally represent the undistributed profits/amount of accumulated earnings of the Company. It includes Rs. 8 04 79 represented
by Revaluation Reserve as on the date of the transition which is not available for distribution as dividend.
v) Other Comprehensive Income represents the balance in equity relating to gain/losses on re-measurement of defined benefit obligations. This will not
be reclassified to Statement of Profit and Loss.
33
Note : 13 BORROWINGS (Rupees in '000)
Non-Current Current
2020 2019 2020 2019
Buyer's credit in foreign currency (Secured) - - 2 59 19 4 74 35
Acceptance - Inland Bills Discounting (Secured) - - 55 59 03 70 35 53
Working Capital Demand Loan from Banks (Secured) - - 9 00 00 -
Bank Overdraft (Secured) - - 40 04 73 13 33 46
Interest free Sales Tax Loan (Unsecured) 47 84 79 73 1 75 41 1 43 51
Loan from WBIDC (Unsecured) - - 1 00 55 1 00 55
Term Loan from Bank (Secured) - 6 75 11 22 31 53
Cash Credit from Banks (Secured) - - 32 53 00 24 00 26
Total 47 84 86 48 1 42 63 13 1 15 19 19
Footnote:
i) Interest free Sales Tax Loan is repayable in Half yearly equal installments over a period of 7 years after an initial moratorium of 3 years from
4th September, 2012 (date of sanction of Rehabilitation Scheme by Hon'ble BIFR). Accordingly, installments falling due within next 12 months have
been shown as current.
ii) Loan from WBIDC is adjustable against power subsidy receivable from Govt. of West Bengal, claim for which has been lodged by the Company & the
matter is sub-judice in the Hon'ble High Court at Kolkata. Adjustment, if any, shall be made on final adjudication.
iii) Letter of Credits, Letter of Guarantees, Buyers' Credit, Demand Loan, Bank Overdraft & Cash Credit are secured by hypothecation of Book Debts,
Inventories & pledge of fixed deposits held as margin. These are further secured by 1st charge over fixed assets of Bamunari, Tiljala & Santragachi
Plants.
iv) Term loan of Rs. 4 40 (PY Rs. NIL) carries interest rate of 11.95% p.a as at the year end & the same is repaybale in twelve equal installmement with
effect from June 2019 and it is secured by hypothication of fixed movable fixed assets acquired out of said term loan.
v) Term loan of Rs. 6 82 (PY Rs. 32 19) carries interest rate of 11.00% p.a as at the year end & the same is repaybale in twenty four equal installmement
with effect from July 2018 and it is secured by hypothication of fixed movable fixed asstets acquired out of said term loan.
vi) Term loan of Rs. NIL (PY Rs. 5 82 ) carries interest rate of 12.00% p.a as at the year end & the same is repaybale in twelve equal installmement with
effect from September 2018 and it is secured by hypothication of fixed movable fixed asstets acquired out of said term loan.
vii) Term loan of Rs. NIL (PY Rs. 27) carries interest rate of 12.05% p.a as at the year end & the same is repaybale in six equal installmement with effect
from March 2019 and it is secured by hypothication of fixed movable fixed asstets acquired out of said term loan.
Note : 14 TRADE PAYABLES (Rupees in '000)

Non- Current Current
2020 2019 2020 2019
Trade Payables
- Due to Micro, Medium and Small Enterprise - - - -
- Others - - 1 00 31 94 96 41 27
Total - - 1 00 31 94 96 41 27
Footnote:
On the basis of information available with the company, no supplier has given intimation to the company about registration under MSMED Act, 2006. Hence
no information is available with the company about any due payable to any of such supplier or any delay in payment thereof.
34
Note : 15 OTHER FINANCIAL LIABILITIES (Rupees in '000)
Non-Current Current
2020 2019 2020 2019
Interest accrued & not due on Borrowings - - 67 77 1 58 60
Security Deposit from Dealers - - 28 10 28 10
Other Payables - - 24 45 99 23 52 49
Unclaimed Equity Shares Redemption Proceeds - - - 42 67
Unclaimed Debentures Redemption Proceeds - - 1 99 30 2 64 37
Total - - 27 41 16 28 46 23
Note : 16 DEFERRED TAX LIABILITIES (Rupees in '000)

PARTICULARS
2020 2019
I Deferred Tax Liabilities
Timing differences in respect of depreciation 40 92 17 59 55 96
40 92 17 59 55 96
II Deferred Tax Assets
Timing differences in respect of Expenses 17 60 46 24 60 66
17 60 46 24 60 66
Deferred Tax Liability (Net) ( I - II ) 23 31 71 34 95 30
Note : 17 PROVISIONS (Rupees in '000)

Non-Current Current
2020 2019 2020 2019
Provision for Employee Benefits
- Gratutiy 55 82 01 57 02 16 7 27 32 7 45 40
- Leave Encashment 3 64 20 3 07 11 69 09 71 37
Total 59 46 21 60 09 27 7 96 41 8 16 77
Note : 18 OTHER LIABILITIES (Rupees in '000)

Non-Current Current
2020 2019 2020 2019
Statutory Liabilities - - 4 30 33 5 44 29
Advance from Customers - - 11 12 33 21 96 45
Other Payables - - 5 01 56 4 86 00
Total - - 20 44 22 32 26 74

35
Note : 19 REVENUE FROM OPERATIONS (Rupees in '000)
For the year ended For the year ended
PARTICULARS
March 31, 2020 March 31, 2019
Sale of Products
i) Manufactured Goods
- Ammonium Sulphate 45 52 1 88 30
- Cyanide 54 61 20 1 22 63 85
- Diphenyl Guanidine 6 16 9 01 14
- Mandelonitrile 19 55 60 22 13 94
- MPBAD Cyanohydrin 5 17 96 11 10 19
- Jute Goods 3 21 05 48 2 87 04 02
- Points & Crossing 45 43 17 40 75 78
- Railway Rolling Stock 2 69 95 33 2 63 23 70
- Steel Casting 40 73 03 84 61 20
- Others 2 87 78 10 00 21
7 59 91 23 8 52 42 33
ii) Stock in Trade
- Cyanide 40 61 19 1 23 30
- Others - 9 80 28
Total Revenue from Contracts with Customers 8 00 52 42 8 63 45 91
Other Operating Revenue
- Income from Electricity Generation 2 38 57 3 07 73
- Export-Import Benefit/Incentive 5 35 1 02 93
- Scrap/Raw Material Sales 7 22 18 11 77 93
Total 8 10 18 52 8 79 34 50
PARTICULARS
March 31, 2020 March 31, 2019
Disaggregation of Revenue
Revenue Based on Geography
Within India 8 10 18 52 8 75 82 98
Outside India - 3 51 52
8 10 18 52 8 79 34 50
Revenue Based on Business Segment
Chemical 1 23 48 69 1 87 77 46
Jute 3 21 54 58 2 88 07 89
Enginnering 3 65 15 25 4 03 49 15
8 10 18 52 8 79 34 50
Reconcilliation of Revenue From Operation with Contract Price
Revenue as per contracted price 8 30 74 43 8 84 98 30
Adjustments
Sales return 32 17 9 65
Rate Difference/Deesclation 19 69 84 3 45 59
Quantity Claim 3 12 1 53
Discounts 50 78 2 07 03
Total 8 10 18 52 8 79 34 50
36
Note : 20 OTHER INCOME (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Interest Income (Gross) 21 03 60 27 88 03
Net Gain on Sale/Discard of Fixed Assets 3 72 26 15
Net Gain on Sale of Investments - 53
Sundry Balances W/Back(Net) - 1 60 71
Net Gain on Foreign Exchange Fluctuation 22 70 1 09 39
Other Non Operating Income 20 86 23 24
Total 21 50 88 31 08 05
Note : 21 COST OF MATERIALS CONSUMED (Rupees in '000)

PARTICULARS For the year ended March 31, 2020 For the year ended March 31, 2019
Inventory at the beginning of the year 1 48 95 00 1 02 98 10
Add: Purchases during the year 4 13 79 95 5 54 54 42
Less: Inventory at the end of the year (92 03 17) (1 48 95 00)
Total 4 70 71 78 5 08 57 52
Details of Raw Materials Consumed
Castic Soda/Potash 6 89 63 21 52 32
Ammonia Liquid 6 27 66 12 48 12
Natural Gas 2 87 93 6 70 08
Raw Jute 1 90 79 96 1 72 74 20
Scrap 17 97 70 24 05 48
Steel 2 30 35 46 2 44 40 93
Others 15 53 44 26 66 39
Total 4 70 71 78 5 08 57 52
Breakup of Consumption of Raw Materials %age Amount %age Amount
Imported 4.00% 18 82 87 4.51% 22 92 38
Indigenous 96.00% 4 51 88 91 95.49% 4 85 65 14
100.00% 4 70 71 78 100.00% 5 08 57 52
Note 22 PURCHASE OF STOCK-IN-TRADE (Rupees in '000)

PARTICULARS For the year ended For the year ended
March 31, 2020 March 31, 2019
Purchase of Stock in Trade 35 69 82 4 20 42
Total 35 69 82 4 20 42
37
Note : 23 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS & STOCK IN TRADE
(Rupees in '000)
PARTICULARS
March 31, 2020 March 31, 2019
Inventories (Opening Stock)
- Finished Goods 11 32 44 9 50 04
- Stock in Trade 1 75 35 9 54 11
- Work-in-Progress 72 03 51 62 42 90
85 11 30 81 47 05
Inventories (Closing Stock)
- Finished Goods 15 34 71 11 32 44
- Stock in Trade 66 1 75 35
- Work-in-Progress 1 09 00 10 72 03 51
1 24 35 47 85 11 30
Net (Increase) / Decrease (39 24 17) (3 64 25)
Note : 24 EMPLOYEE BENEFIT EXPENSES (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Salaries, Wages and Other Allowances 1 13 58 18 1 16 38 76
Contribution to Provident and Other Funds 10 12 43 11 13 73
Staff Welfare Expenses 1 08 85 1 03 95
Total 1 24 79 46 1 28 56 44
Note : 25 FINANCE COST (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Interest Expense 14 25 32 10 81 31
Foreign Exchange rate difference applicable to borrowing cost (1 25) 86 31
Total 14 24 07 11 67 62
Note : 26 DEPRECIATION & AMORTISATION EXPENSES (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Depreciation on Tangible Assets 32 57 25 32 69 88
Amortization of Intangible Assets 28 5 04
Total 32 57 53 32 74 92
38
Note : 27 OTHER EXPENSES (Rupees in '000)

Consumption of Stores & Spares 52 62 02 39 26 89
Power, Fuel & Water Charges 47 64 63 56 23 30
Payment to Auditors:
- Statutory Audit Fee 2 12 2 12
Brokerage & Commission 2 82 10 4 61 94
Bank Charges 6 03 63 6 01 64
Charity & Donation * 1 03 42 63 80
Director Fee 4 75 4 35
Freight & Transport (Net) 4 35 32 7 81 33
Insurance Charges 1 54 77 66 47
Rent (Net) 89 28 83 96
Rates & Taxes (Includes Rs 87 74 relating to earlier years) 2 86 01 70 44
Repairs
- Building 2 08 92 1 56 28
- Machinery 5 44 65 4 69 10
- Others 5 99 40 4 82 86
Research & Development Expenses 24 60 30 51
Jobs on Contract 18 33 94 23 33 87
Sundry Debtors/Balances Written off (Net) 63 69 -
Travelling & Conveyance 1 92 15 1 99 31
Net Loss on Sale of Investment 4 36 03 -
Miscellaneous Expenses 14 96 08 9 67 83
Total 1 73 87 51 1 63 26 00
Breakup of Consumption of Stores & Spares % age Amount % age Amount
Imported 0.05% 2 50 1.16% 45 63
Indigenous 99.95% 52 59 52 98.84% 38 81 26
Total 100.00% 52 62 02 100.00% 39 26 89
Footnote :
* Includes amount paid on account of Corporate Social Responsibility (CSR) activities Rs. 1 01 00 (P.Y: Rs. 60 80).
Note : 28 EARNING PER SHARE (Rupees in '000)

For the year For the year
PARTICULARS ended March 31, ended March 31,
2020 2019
Number of Weighted Average Equity Shares outstanding at year end 15 00 07 82 15 00 07 82
Nominal Value of each Equity Share (Rs.) 10 10
Profit attributable to equity shareholders 22 55 60 39 70 96
Earning per Share
- Basic (Rs) 15.04 26.47
- Diluted (Rs) 15.04 26.47
39
29 Malanpur Steel Ltd.(MSL) had been merged with the company with retrospective effect from 1st April 2009 as per “Scheme” sanctioned by the Board
for Industrial & Financial Reconstruction (BIFR) vide its Order dated 4th September 2012.
Certain amounts claimed by different authorities against which necessary provision had been made in the scheme have not been provided for in
these accounts as these are claimed to be not payable by the company & are under reconciliation with respective authorities. The same have been
disclosed as contingent liability in these accounts. Reliefs / concessions claimed from various statutory authorities viz. Income Tax, Sales Tax &
Excise are under consideration of respective authorities & approvals of the same are awaited. However, the effects thereof have been taken in these
accounts. Necessary adjustment, if required, shall be made on disposal thereof by respective authorities.
(Rupees in ‘000)
30 Contingent Liabilities not Provided for As at March 31, As at March 31,
2020 2019
Claims against the Company not acknowledged as debts (to the extent ascertained )
(i) Sales Tax matters under appeal 42 99 34 29 54 00
Net of payment already made & Included in Loans & Advances Rs. 2 82 45 (PY: Rs. 2 75 04)
(ii) Central Excise matters under appeal 9 40 45 16 80 72
Net of payment already made & Included in Loans & Advances Rs.8 24 59 (PY: Rs. 8 24 59)
(iii) Service Tax maters under appeal 46 56 43 06
Net of payment already made & Included in Loans & Advances Nil (P.Y. Nil)
(iv) Income Tax demand under appeal/subject to rectification 2 14 15 2 14 15
Net of payments Rs 4 43 28 (PY 4 43 28)
(v) Others 83 02 88 82 77 67
Net of payment already made & included in Security Deposits Rs. 20 00 (PY: Rs. 20 00)
31 Capital Commitments not provided for (Net of advances) 8 50 79 7 52 77
(Rupees in ‘000)
32 Expenses include following payments to Wholetime Director (s) :- For the year For the year
ended March 31, ended March 31,
2020 2019
Salary and other allowances 41 36 38 26
Contribution to Provident Fund 2 19 2 19
33 Research and Development expenses include : For the year For the year
2020 2019
Employee Benefit Expenses 23 62 29 19
Stores and Spares Consumed 98 1 02
Miscellaneous Expenses - 30
34 Loan to Subsidiary (Note No. 9) include advances given and administrative & other expenses allocated agreegating to Rs. 8 02 10 (PY: Rs. 8 01 07)
for project of Company's subsidiary. Implementation of the said project has been rendered ineffective by the Government & the matter is subjudice.
Pending final adjudication, the amount is considered good & recoverable.
35 In terms of Orders of Hon'ble Calcutta High Court in respect of certain loans given in earlier years and remaining outstanding Rs. 20 22 30 (PY:
Rs. 20 22 30), interest for the period from 1st April 1997 stands wavied and the same has therefore not accured. However, interest thereon already
accrued and accounted for upto 31st March 1997 are being recovered where principal amounts have been fully realized and amount outstanding is
Rs. 72 31 08 (PY: Rs. 72 31 08).
36 Loans to other include Rs. 5 00 00 (PY: Rs. 5 00 00) which are overdue for payment. Necessary steps for recovery are being taken & pursued by the
Company. Interest on such loans, considering the uncertainty as to the realization, shall be accounted for on receipt thereof.
37 Balances of Trade Receivables, Security Deposits, Advances, Trade Payables, Statutory Dues/claims & Other Payables are subject to confirmation
and consequential reconciliation / adjustments.
38 Trade Receivables and Advances aggregating to Rs. 12 21 63 (PY: Rs. 79 82 20), pending outcome of persuasive and other steps being taken by
the company, are considered good and recoverable.
40
39 a) Information about Business segments (Rupees in '000)

Chemicals Jute Goods Engineering Total
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
REVENUE
External Sales/Other Income (Gross) 1 23 48 69 1 87 77 46 3 21 54 58 2 88 07 89 3 65 15 25 4 03 49 15 8 10 18 52 8 79 34 50
Inter-segment Sales/Other Income - - 3 35 1 54 - - 3 35 1 54
Total Revenue 1 23 48 69 1 87 77 46 3 21 57 93 2 88 09 43 3 65 15 25 4 03 49 15 8 10 21 87 8 79 36 04
RESULT 10 78 33 51 33 87 13 19 51 1 97 53 13 07 90 14 21 29 37 05 74 67 52 69
Unallocated Expenses (Net of 20 45 84 18 69 75
Unallocated Income)
Operating profit 16 59 90 48 82 94
Interest Expenses 14 24 07 11 67 62
Interest / Dividend Income 21 03 60 27 88 03
Net Gain/(Loss) on sale of Investments (4 36 03) 53
Income Taxes
Current Tax 8 11 39 27 26 14
Deferred Tax (11 63 59) (1 93 22)
Net Profit 22 55 60 39 70 96
OTHER INFORMATION
Segment assets 92 75 57 1 03 34 49 92 89 00 80 64 79 4 75 56 01 4 89 28 85 6 61 20 58 6 73 28 13
Unallocated assets 7 80 82 26 7 38 81 75
Total assets 14 42 02 84 14 12 09 88
Segment liabilities 15 82 79 17 26 50 95 90 96 86 99 41 1 00 41 72 1 17 02 01 2 12 15 47 2 21 27 92
Unallocated Liabilities 1 69 87 15 1 55 13 33
Capital expenditure (Including CWIP) 5 85 73 2 94 63 11 62 55 7 47 72 91 49 2 13 49 18 39 77 12 55 84
Unallocated 8 06 42
Total 18 47 83 12 56 26
Depreciation 6 18 19 6 89 49 2 96 22 2 39 62 6 53 20 6 52 49 15 67 61 15 81 60
Unallocated 16 89 91 16 93 32
Total 32 57 53 32 74 92
Break-up of Segment Revenue:-
Sales 1 20 47 63 1 84 36 63 3 21 05 48 2 87 04 02 3 58 99 32 3 92 05 27 8 00 52 43 8 63 45 92
Other Income
Export Incentive - 2 76 - - 5 35 1 00 16 5 35 1 02 92
Other Operating Income 3 01 06 3 38 07 49 10 1 03 87 6 10 58 10 43 72 9 60 74 14 85 66
Total Revenue 1 23 48 69 1 87 77 46 3 21 54 58 2 88 07 89 3 65 15 25 4 03 49 15 8 10 18 52 8 79 34 50
41
39 Information about Business segments Contd..
b) Operating segments are defined as components of an enterprise for which discerete financial information is available which is evaluated
regularly by the Chief Financial Officer in deciding how to allocate resources & assess performance.
c) Based on the synergies, risks and return associated with business operation, the Company is engaged in following business segments.
Identified Segments Manufacturing and sale of :

i) Chemicals Sodium Cyanide, Ammonium Sulphate,Diphenyl Guanidine
ii) Jute Jute Goods
iii) Engineering Castings, Points & Crossings, Railway Rolling Stock, Steel Wires
(Rupees in ‘000)
d) Geographical segments considered for disclosure are For the year ended For the year ended
March 31, 2020 March 31, 2019
Sales
- within India 8 00 52 42 8 59 94 39
- Outside India - 3 51 52
Total : 8 00 52 42 8 63 45 91

2020 2019
Trade Receivables
- within India 1 47 93 64 1 16 24 00
- Outside India 6 79 77 21 66 84
Total : 1 54 73 41 1 37 90 84
40 Gratuity & Other Post Employment Benefit
Plans
This Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service is
entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act 1972.
This company also extends benefit of compensated absense to the employees, whereby they are eligible to carry forward their entilement of
earned leave for encashment. This is also unfunded.
The following tables summarizes the components of net benefit/expenses recognised in the Statement of Profit and Loss & the Balance Sheet
for the respective plans.
1. Movement In Obligation (Rupees in'000)
Gratuity Leave
Particulars
(Unfunded) (Unfunded)
Present Value of Obligation- April 1, 2018 66 20 00 3 96 92
Current Service Cost 2 79 75 63 10
Interest Cost 4 90 37 23 49
Benefits/Settlement paid (5 02 88) (1 83 45)
Acturial loss/(gain): (4 39 68) 78 42
Present Value of Obligation- March 31, 2019 64 47 56 3 78 48
Current Service Cost 2 72 62 1 11 14
Present Value of obligation- March 31, 2020 63 09 33 4 33 29
2. Recognised in Statement of Profit and Loss (Rupees in'000)

Gratuity Leave
Particulars
For the year ended March 31, 2019 7 70 12 86 59
For the year ended March 31, 2020 7 63 24 1 39 70
42
3. Recognised in Other Comprehensive Income (Rupees in'000)
Gratuity Leave
Particulars
Remeasurement
Acturial loss/(gain) for the year ended March 31, 2019 (4 39 68) 78 42
Acturial loss/(gain) for the year ended March 31, 2020 (3 12 15) 76 96
4. The principal acturial assumptions used for estimating the Company's defined benefit obligations in respect of Gratuity & Leave
are set out as below:
Year ended Year ended

Weighted average acturial assumptions
March 31,2020 March 31,2019
Attrition rate 1% to 8% 1% to 8%
Discount rate 7.00% 7.70%
Expected rate of increase in salary 6.00% 6.00%
Expected rate of return on plan assets - -
Mortality rate IALM(2012-14) Table
The assumptions of future salary increase takes into account the inflation, seniority, promotion and other relevant factors such as supply and
demand in employment market.
5.Sensitivity Analysis: (Rupees in'000)

Change in Effect on Gratuity obligation
Particulars Assumption Year ended Year ended
March 31,2020 March 31,2019
(a) Gratuity
Discount rate > 1% (2 67 39) (3 83 86)
<1% 5 60 52 4 25 12
Salary Growth rate > 1% 5 83 86 4 50 94
<1% (2 94 29) (4 12 81)
Withdrawal Rate > 1% 1 45 94 35 96
<1% 1 03 40 (38 79)
(b) Leave Encashment Effect on Leave Encashment

obligation
Discount rate > 1% (28 99) (23 47)
<1% 33 09 26 57
Salary Growth rate > 1% 34 36 27 60
<1% (30 50) (24 67)
Withdrawal Rate > 1% 2 14 2 86
<1% (2 38) (3 16)
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.In practice,this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defind benefit obligation to
significant actuarial assumptions the same method (projected unit credit method) has been applied when calculating the defined benefit
obligation recognised within the Balance sheet.
6.Statement of Employee Benefit Provision (Rupees in'000)

Particulars Year ended Year ended
March 31,2020 March 31,2019
Gratuity 63 09 33 64 47 56
Leave Encashment 4 33 29 3 78 48
Total 67 42 62 68 26 04
43
41 Related Party Disclosures
A. Names of related parties with whom transaction were being carried out during the year and their relationship
Subsidiary Company: Hindustan Vidyut Corporation Ltd.
Associate Companies: Kanchan Stocks Pvt. Ltd. (Upto 16.12.2019)
Superb Finance Pvt. Ltd. (Upto 04.09.2019)
Support Holdings Pvt. Ltd. (Upto 03.09.2019)
Unique Stocks Pvt. Ltd. (Upto 05.09.2019)
Key Managerial Personnel (KMPs): Shri R P Mody (Chairman)
Shri V A Mody (Director)
Shri A K D Singh (Executive Director-Technical)
Shri J K Singhania (Chief Financial Officer) ( upto 09.09.2019)
Shri P K Himatsingka - (Chief Financial Officer) ( w.e.f 10.09.2019)
Shri R K Agarwal (Company Secretary)
Enterprise over which KMP/ Shareholders/ Close family
have significane influence: Anuradha Investments Ltd.
Associated General Trading Society Ltd.
Carbo Industrial Holdings Ltd.
Foster Engineering Industries Ltd.
Hindusthan Consultancy & Services Ltd.
Hindusthan Urban Infrastructure Ltd.
Olympic General Trading Ltd.
Paramount Enterprises Ltd.
Promain Ltd.
Hindusthan Speciality Chemicals Ltd.
Note: Vide order dated 25.11.2019 passed by the Hon'ble National Company Law Tribunal, Kolkata Bench, following Companies were
amalgamated with Hindusthan Consultancy & Services Ltd. w.e.f. 01.04.2018 and accordingly figures for the previous years have
been regrouped:
Adarsh Commercial Co.Ltd.
Gwalior Securities & Traders Ltd.
Jai Commercial Co. Ltd.
Magnum Traders Ltd.
Mahanagar Commercial Co. Ltd.
Rohini Traders & Exporters Ltd.
Senilis Trading Syndicate Ltd.
Simco Business Ltd.
Transactions with related parties are at arms length price. Outstanding balances as at year end are unsecured & settlement occurs
generally in cash. The company has not recorded any impairment in respect of outstandings with related parties during the year as
well as in the preceeding year.
44
Related Party Disclosures
B. Details of transactions between the Company and related parties and outstanding balances as at the year end are given below:
(Rupees in’000)
Enterprise over
Subsidiary whichKMP/Shareholders/
Nature of Transactions Year KMP Total
Companies relatives have significant
influence
In relation to the statement of Profit and Loss
Account(Exclusive of taxes):
Sale of Investments
Hindusthan Consultancy & Services Ltd. 2019-20 20 97 80 20 97 80
2018-19 - -
Remuneration/Commission
Shri A K D Singh 2019-20 41 36 41 36
2018-19 38 26 38 26
Director Sitting Fee
Shri R P Mody 2019-20 60 60
2018-19 55 55
Shri V A Mody 2019-20 50 50
2018-19 50 50
Salary
Shri J K Singhania 2019-20 22 06 22 06
2018-19 25 22 25 22
Shri P K Himatsingka 2019-20 10 52 10 52
2018-19 - -
Shri R K Agarwal 2019-20 22 83 22 83
2018-19 23 79 23 79
Rent Paid (Exclusive of taxes)
Hindusthan Consultancy & Services Ltd. 2019-20 63 63
2018-19 65 65
Paramount Enterprises Ltd. 2019-20 96 54 96 54
2018-19 96 54 96 54
Promain Ltd. 2019-20 18 18
2018-19 18 18
Magnum Traders Ltd 2019-20 1 20 1 20
2018-19 1 20 1 20
Consultancy Service & Maintenance Charges etc.
Hindusthan Consultancy & Services Ltd. 2019-20 95 66 95 66
2018-19 1 00 71 1 00 71
2018-19 8 76 8 76
Interest Received
Hindustan Urban Infrastructure Ltd. 2019-20 2 23 2 23
2018-19 1 65 39 1 65 39
Hindusthan Specility Chemicals Ltd. 2019-20 40 29 40 29
2018-19 - -
Rent Received
Hindustan Urban Infrastructure Ltd. 2019-20 12 12
2018-19 12 12
Electricity Charges- Received
2018-19 3 68 3 68
45
Related Party Disclosures Contd… (Rupees in’000)
Enterprise over
influence
In relation Balance Sheet:
Loan/ Advances / Secrutiy Deposits Given/ (Repayment -
Received)
Hindusthan Urban Infrastructure Ltd. 2019-20 5 00 00 5 00 00
2018-19 (93 70 12) (93 70 12)
Promain Ltd. 2019-20 (10 20) (10 20)
2018-19 (20 20) (20 20)
Hindusthan Specility Chemicals Ltd. 2019-20 10 00 00 10 00 00
2018-19 - -
Hindusthan Vidyut Corporation Ltd. 2019-20 1 03 1 03
2018-19 - -
Magnum Traders Ltd 2019-20 (60) (60)
2018-19 (60) (60)
Balance outstanding at the year end - Debit
Loan Given / Repayment Received
Anuradha Investments Ltd. 2019-20 1 08 00 1 08 00
2018-19 1 08 00 1 08 00
Associated General Trading Society Ltd. 2019-20 22 00 22 00
2018-19 22 00 22 00
Carbo Industrial Holdings Ltd. 2019-20 1 22 25 1 22 25
2018-19 1 22 25 1 22 25
Foster Eng. Industries Ltd. 2019-20 1 57 25 1 57 25
2018-19 1 57 25 1 57 25
2018-19 - -
Promain Ltd. 2019-20 1 19 80 1 19 80
2018-19 1 19 80 1 19 80
2018-19 14 93 00 14 93 00
2018-19 - -
Hindusthan Vidyut Corporation Ltd. 2019-20 8 02 10 8 02 10
2018-19 8 01 07 8 01 07
Interest Receivables
2018-19 4 85 07 4 85 07
Associated General Trading Society Ltd. 2019-20 7 15 28 7 15 28
2018-19 7 15 28 7 15 28
2018-19 4 34 24 4 34 24
2018-19 4 77 72 4 77 72
2018-19 35 68 64 35 68 64
2018-19 - -
Hindusthan Urban Infrastructure Ltd. 2019-20 2 01 2 01
2018-19 - -
Olympic General Trading Ltd. 2019-20 4 40 00 4 40 00
2018-19 4 40 00 4 40 00
Promain Ltd. 2019-20 11 10 13 11 10 13
2018-19 11 10 13 11 10 13
46
Enterprise over
influence
Advances/Security Deposits given
Magnum Traders Ltd. 2019-20 23 22 23 22
2018-19 23 82 23 82
Promain Ltd. 2019-20 2 01 55 2 01 55
2018-19 2 11 75 2 11 75
Investment in Preference Shares
Hindusthan Urban Infrastructure Ind. Ltd. 2019-20 - -
2018-19 95 18 97 95 18 97
Balance outstanding at the year end - Credit
Salary
Shri J K Singhania 2019-20 - -
2018-19 2 27 2 27
2018-19 - -
Shri R K Agarwal 2019-20 1 30 1 30
2018-19 2 10 2 10
Advance Received
Hindustan Consultancy & Services Ltd. 2019-20 1 86 -
2018-19 - -
Rent Payable
2018-19 4 4
2018-19 6 45 6 45
Payable
2018-19 6 18 6 18
47
42 Expenditure & Earning in Foreign currency (Rupees in'000)
March 31, 2020 March 31, 2019
CIF VALUE OF IMPORTS
Raw Materials 10 12 40 36 14 18
Stores and Spare Parts 2 50 12 08
Finish Goods 32 30 32 2 61 89
Capital Goods 85 73 1 87 64
EXPENDTURE IN FOREIGN CURRENCY
Travelling 21 40 80 58
Interest 14 25 14 75
Commission - 21 00
Others 4 57 11 82
EARNING IN FOREIGN CURRENCY
Export (F.O.B Value) - 3 51 53
43 Unhedged Foreign Currency: ('000)

USD EURO USD EURO
Payables
Buyer's Credit 3 44 - 6 86 -
Interest 3 - 5 -
Advance From Customers 1 97 - 1 97 -
Receivables
Trade Receivables 8 47 50 28 82 2 23
Cash/Bank Balances - 1 - 1
Insurance Claim - - 3 36 -
Advance to Suppliers - 2 6 2
44 FINANCIAL INSTRUMENTS DISCLOSURE
CATEGORIES OF FINANCIAL INSTRUMENTS (Rupees in '000)
As at March As at March
PARTICULARS Note No:
31, 2020 31, 2019
Financial Assets
Measured at Amortised Cost
Investments - Non-Current 4 96 59 60 1 21 93 42
Trade Receivables 7 1 54 73 41 1 37 90 84
Cash and Cash Equivalents 8 2 26 18 49 1 66 29 54
Loans 9 1 30 34 65 1 15 33 62
Other Financial Assets 10 1 11 44 85 1 10 04 32
Total Financial Assets Measured at Amortised Cost 7 19 31 00 6 51 51 74
Measured at Fair Value through Statement of Profit or Loss Note No:
31, 2020 31, 2019
Investments - Current 4 6 30 -
Total Financial Assets measured at Fair Value through Statement of Profit or Loss 6 30 -
Financial Liabilities Note No:
31, 2020 31, 2019
Borrowings 13 1 43 10 97 1 16 05 67
Trade Payables 14 1 00 31 94 96 41 27
Other Financial liabilities 15 27 41 16 28 46 23
Total Financial Liabilities measured at Amortised Cost 2 70 84 07 2 40 93 17
48
45 (i) Class wise Fair Value of the Company's Financial Instruments: (Rupees in '000)
Particulars
2020 2019
Investments in Mutual Funds 6 30 -
Non Current Investments, other than Investments in Subsidiary and Associates 13 13
(ii) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received on sale of an asset or paid to transfer
a liability in an orderly transaction between participants at the measurement date. The following methods and assumptions were used to
estimate the fair values:
a) The fair value of cash and cash equivalents, trade receivables, trade payables, financial liabilities and borrowings approximate their carrying
amount largely due to the short term nature of these instruments. The board considers that the carrying amounts of the financial assets and
financial liabilities are recognised at cost/amortised costs in the financial statements approximates their fair values.
b) Fair value of debt approximates their carrying value subject to adjustments made for transaction cost if any.
c) Investments in liquid and short-term mutual funds are measured using their net asset value at the reporting date multiplied by the quantity held.
d) During the year ended 31st March 2020 and 31st March 2019, there were no transfers between different levels of fair value measurement.
46 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company's financial liabilities comprise borrowings, capital creditors and trade and other payables, The main purpose of these financial
liabilities is to finance the company's operations. The company's financial assets include trade and other receivables, cash and cash
equivalents, investments at cost/fair value and deposit.
The Company is exposed to market risk. The company's senior management oversees the management of the risks. The Board of Directors
reviews and agrees to policies for managing each of these risks, which are summarised below:
Market Risk
Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market
risk mainly comprises of risk, such as raw material price risk. Financial instruments affected by market risk include FVTPL investments, trade
paybles, trade receivables, etc.
The table provides undiscounted cash flow towards non- derivative financial liability into relevant maturities based on the remaining period
at balance sheet date to contractual maturity date.
(Rupees in '000)
Particulars Payable within Payable in more Total
1 year than 1 year
As at 31st March 2019
Non Current Borrowings - 86 48 86 48
Current Borrowings 1 15 19 19 - 1 15 19 19
Trade Payables 96 41 27 - 96 41 27
Unpaid Shares/Debentures Proceeds 3 07 04 - 3 07 04
Trade Payables 1 00 31 94 - 1 00 31 94
47 CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes Issued Equity Capital, Securities Premiums and all other Equity
Reserves attributable to the equity holders of the company. The primary objective of the company's capital management is to maximise the
Share holder value. The Company manages its capital structure and makes adjustments in line with changes in economic conditions. To
maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares or sale assets to reduce debt. The company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The company includes within net debt, interest bearing long term loans and borrowings less cash and cash equivalents.
48 GEARING RATIO:
The Company has long term debt of Rs.47 84 as on 31.03.2019 (PY - Rs. 86 48). Accordingly the Company has 100% gearing ratio as at
31st March 2020 & 31st March 2019.
49
(Rupees in'000)
As at March 31, As at March
Particulars
2020 31, 2019
Net Long Term debt 47 84 86 48
Total Equity 10 60 00 22 10 35 68 63
Net Long Term debt to Value Ratio 100% 100%
49 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosure of contingent liabilities. Unncertainty about
these assumption and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
JUDGEMENTS
Fair value as Deemed Cost for Property Plant & Equipment.
Property, plant and equipment has been carried in accordance with previous GAAP carrying value as deemed cost at the date of transition ,
which has been considered as deemed cost. On transition, previous GAAP revaluation reserve has also been transfered to retained earnings.
Lease as Finance Lease
Lease as Finance Lease has been included in the Property, Plant and Equipment while considering the overall context of transfer of risk and
rewards incidental to ownership.
Depreciation/Amortisation of and Impairment Loss on Property Plant and Equipment/Intangible Assets:
Property, Plant and Equipment are depreciated and intangible assets are amortised on straight line basis over the estimated useful lives (or
Lease Term if shorter) in accordance with Schedule II of the Companies Act 2013, taking into account the estimated residual value, wherever
applicable. The company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation/ amortisation
expense to be recorded during any reporting period. This reassessment may result in change in depreciation expense in future periods.
The Company reviews its carrying value of its Tangible and Intangible assets whenever there is objective evidence that the assets are
impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount.
Impairment loss on Trade Receivables:
The Company evaluated whether there is any objective evidence that trade receivable are impaired and determines the amount of impairment
loss as a result of the inability of the debtors to make required payments. The Company bases the estimates on the ageing of the trade
receivable balances, creditworthiness of the trade receivables and historical written off experience. If the financial conditions of the trade
receivables were to deteriorate, actual writeoffs would be higher than estimated.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimations uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are described above. The
company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances
and assumption about the future developments, however , may change due to market changes or circumstances arising that are beyond the
control of the company . Such changes are reflected in the assumption when they occur.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumption that may differ from actual developments in the future. These include the determination
of the discount rate, future salary increase and mortality rates. Due to the complexities involved in the valuation and it's long term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the mangement
considers the interest rate of government bonds in currencies consistent with the currencies of the post employment benefit obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval
in response to demographic changes.
Future salary increases are based on expected future inflation rates.
50
Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active market, there fair value is measured using various valuation techniques. The inputs to these models are taken from observable
markets where possible , but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
consideration of inputs such as liquidity risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
50 During the year, lockdown was declared across the country by the Central/ State Government(s) in response to COVID-19 pandemic on various
dates between 22nd March, 2020 and 25th March, 2020. Consequently, Company's manufacturing and sales operations at all the locations
were impacted due to such lockdown during the period from 22nd March, 2020 to 31st March, 2020. The operations have since commenced
in a phased manner since April/ May, 2020 conforming to the guidelines of regulatory authorities. While Company's sales and profitability for
the period were adversely impacted due to lockdown, it is not possible to ascertain the impact thereof. As per the current assessment of the
Company, no material impact is expected due to COVID-19 on the carrying values of assets and liabilities at the year ended 31st March, 2020.
The Company has taken into consideration external and internal information for developing various assumption for assessing the fair value of
assets and liabilities, the impact whereof may differ from the estimates taken as on the date of approval of financial statements. Any changes
due to the changes in situation and circumstances will be taken into consideration if necessary as and when it materialises.
51 Pursuant to the enactment of the Taxation Law (Amendment) Act, 2019 (‘Act’) which is effective from April 1,2019,domestic companies have
the option to pay income tax at 22% plus applicable surcharge and cess (‘new tax regime’) subject to certain conditions. The Company
has opted for the said amendment. Accordingly, the company has recognized current tax expense for the year ended 31st March 2020,
remeasured its deferred tax assets /Liabilities at the reduced rate prescribed in the said section.
52 Leases
As Lessee
The Company’s significant leasing arrangements are in respect of leases for premises (residential, manufacturing facilities, office, stores,
godown,etc.) These leasing arrangements which are cancellable ranging between 11 months and 99 years generally, or longer, and are
usually renewable by mutual consent on mutually agreeable terms. Effective 1st April 2019, the Company adopted Ind AS 116 “Leases” and
applied the standard to all lease contracts existing on 1st April 2019 using the modified retrospective method.
Following is carrying value of right of use assets recognized on date of transition and the movements thereof during the year.
(Rupees in ‘000)
Right of Use of Assets
Particulars As at March 31, 2020
Balance as on 01.04.2019 -
Reclassified from Property, Plant & equipment on account of adoption of Ind AS 116 1 85 69
(Refer Note No 2)
Total Right of use Assets on the date of Transition 1 85 69
Addition -
Disposals -
Depreciation for the year 2 77
Balance as on 31.03.2020 1 82 92
53 Figures of the previous Year have been regrouped / rearrenged whenever considered necessary.
54 These Financial statements have been approved by the Board of Directors of the Company on 18th November, 2020 for issue to the
shareholders for their adoption.
The accompanying Notes No. 2 to 54 are an integral part of the Standalone Financial Statements
Director
DIN : 00193192
CA S. Rastogi
Proprietor
51
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENT
TO
THE MEMBERS OF
Report on the Consolidated Financial Statements
Qualified Opinion
We have audited the accompanying Consolidated Financial Statements of Hindusthan Engineering & Industries Limited (“the Holding
Company”), its subsidiary (the Holding Company & its subsidiary together referred to as “the Group”) which comprise the Balance Sheet
as at 31st March, 2020, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the
Statement of Changes in Equity for the year ended on that date, and notes to the financial statements, including a summary of significant
accounting policies and other explanatory information (hereinafter referred to as “Consolidated Financial Statements”).
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described
in the Basis for Qualified Opinion Paragraph the aforesaid Consolidated Financial Statements, give the information required by the Act in
the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of
affairs of the company as at 31st March, 2020, and its Statement of Profit and Loss (including other comprehensive income), its cash flows
and the statement of changes in equity for the year ended on that date.
Basis for Qualified Opinion
a. Note No. 29 in respect of accounting of effect of certain reliefs/concessions which are yet to be approved by respective authorities. In
view of pendency in disposal of such claims, we are unable to comment the impact, if any, thereof on the profit for the year & reserve
& surplus at the year end.
b. Note No. 35 in respect of Loans given, Note No. 37 in respect of Trade Receivables & Advances, whereby the extent of amounts
recoverable there against is presently not ascertainable & therefore provision there against & consequential impact thereof, if any, on
the profit for the year & reserves & surplus could not be ascertained & commented upon by us
c. Note No. 38 regarding the present status of Integrated Lignite Mining-cum-Power Generation Project being implemented by the
subsidiary Company. The Implementation Agreement was made ineffective by the Government of Rajasthan & the matter is subjudice
as described in the Note. The matter being under litigation, we are unable to comment on the realisation of the project expenditure
pending allocation amounting to Rs. 11,86,02,534.
These matters were also qualified in our report on the financial statements for the year ended 31st March, 2019.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013.
Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Companies Act, 2013 and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our Qualified opinion.
Responsibility of Management for Financial Statements
The Holding Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”)
with respect to the preparation of these Consolidated financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income ,cash flows and Statement of changes in equity of the company in accordance with
the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of
the Act,read with Companies(Indian Accounting Standard) rules ,2015 as amended. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies;
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Consolidated financial statement that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the Consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
52
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENT (Contd.)
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these Consolidated financial statements.
Other Matters
We did not audit the financial statements/financial information of the subsidiary company whose financial statements/financial information
reflect total assets of Rs. 1,211.62 lakh and net assets of Rs. 140.15 lakh as at 31st March 2020, total revenue of Rs. Nil and net cash flows
of Rs. (-) 0.54 lakh for the year ended on that date as considered in the consolidated financial statements. These financial statements/
financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on
the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of aforesaid subsidiary and
our report in terms of sub-section (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiary , is based solely on
the reports of the other auditors.
Our opinion on the consolidated financial statements and our report on the Other Legal and Regulatory Requirements below, is not modified
in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
As required by section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purposes of our audit.
b. Except for the effects of the matters described in the basis for qualified opinion paragraph above, in our opinion proper books of account
as required by law have been kept by the company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Cash Flow Statement and Statement of
changes in equity dealt by this report are in agreement with the books of account.
d. Except for the effects of the matter described in the basis for qualified opinion paragraph above, in our opinion, the aforesaid Consolidated
financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian
Accounting Standards) Rules 2015 as amended.
e. The matters described in the basis for qualified opinion paragraph above, in our opinion, may have an adverse effect on the functioning
of the company.
f. On the basis of written representations received from the directors as on 31st March, 2020, taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2020, from being appointed as a director in terms of Section 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness
of such controls, refer to our separate report in Annexure ‘A’.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Consolidated financial statements-Refer
Note No. 30 to the Consolidated Financial Statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the
Company.
Place: Kolkata
Dated: The 18th day of November, 2020.
(CA S. RASTOGI)
Proprietor
53
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENT (Contd.)
Annexure- A to the Auditors’ Report
Report on the Internal Financial Controls under Clause (i) sub –section 3 of Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Hindusthan Engineering & Industries Limited (“the Holding
Company”), its subsidiary (the Holding Company & its subsidiary together referred to as “the Group”) as of 31st March, 2020 in conjunction
with our audit of the Consolidated financial statements of the Company for the year ended on the date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over
on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s Policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the ‘Guidance
Note’) and the standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to
the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting
were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding
of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors’ judgement,
including the assessment of the risks of material misstatement of the financial statements, whether due to fraud and error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial controls over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company asset;
(2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance
with authorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial
statements,
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial controls
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively as at 31st March, 2020, based on the internal control over
54
on audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Place: Kolkata (CA S. RASTOGI)

Dated: The 18th day of November, 2020. Proprietor
UDIN: 20053823AAAADB4207 Membership No. – 053823
55
CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2020
(Rupees in '000)
PARTICULARS Note No. As at March 31, 2020 As at March 31, 2019
ASSETS
Non Current Assets
Property, Plant and Equipment 2 3 17 69 84 3 45 91 89
Capital Work-in-Progress 3 51 22 55 37 96 58
Goodwill on Consolidation 35 35
Intangible Assets 2 13 91 70 13 91 19
Financial Assets
- Investments 4 95 19 10 1 21 44 79
Other Assets 5 50 50 90 47 79 71
Total Non Current Assets 5 28 54 44 5 67 04 51
Current Assets
Inventories 6 2 40 20 21 2 56 66 79
Financial Assets
- Investments 4 6 30 -
- Trade Receivables 7 1 54 73 41 1 37 90 84
- Cash and Cash Equivalents 8 2 26 19 03 1 66 29 87
- Loans 9 1 22 32 55 1 07 32 55
- Other Financial Assets 10 1 11 44 85 1 10 04 32
Other Assets 5 61 21 42 70 42 60
Total Current Assets 9 16 17 77 8 48 66 97
Total Assets 14 44 72 21 14 15 71 48
EQUITY AND LIABILITIES
Equity
Equity Share Capital 11 15 00 08 15 00 08
Other Equity 12 10 45 00 14 10 21 60 42
Total Equity 10 60 00 22 10 36 60 50
Liabilities
Non Current Liabilities
- Borrowings 13 47 84 86 48
Deferred Tax Liabilities (Net) 16 23 31 71 34 95 30
Provisions 17 59 46 21 60 09 27
Total Non Current Liabilities 83 25 76 95 91 05
Current Liabilities
- Borrowings 13 1 42 63 13 1 15 19 19
- Trade Payables 14
-Dues to micro & small enterprises - -
-Dues to others 1 00 31 94 96 41 27
- Other Financial Liabilities 15 30 10 53 31 15 96
Provisions 17 7 96 41 8 16 77
Other Liabilities 18 20 44 22 32 26 74
Total Current Liabilities 3 01 46 23 2 83 19 93
Total Equity & Liabilities 14 44 72 21 14 15 71 48

The accompanying Notes No. 2 to 55 are an integral part of these Consolidated Financial Statements
Director
DIN : 00193192
CA S. Rastogi
Proprietor
56
CONSOLIDATED STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2020
(Rupees in '000)
Note No. Year ended March Year ended March
PARTICULARS
31, 2020 31, 2019
INCOME
Revenue from Operations 19 8 10 18 52 8 79 34 50
Other Income 20 21 50 88 31 08 05
Total Income 8 31 69 40 9 10 42 55
EXPENSES
Cost of Materials Consumed 21 4 70 71 78 5 08 57 52
Purchase of Stock-in-Trade 22 35 69 82 4 20 42
Changes in Inventories of Finished Goods, Work-in-Progress and Stock in Trade 23 (39 24 17) (3 64 25)
Employee Benefit Expenses 24 1 24 79 46 1 28 56 44
Finance Cost 25 14 24 07 11 67 62
Depreciation and Amortisation Expenses 26 32 57 53 32 74 92
Other Expenses 27 1 74 75 14 1 63 26 00
Total Expenses 8 13 53 63 8 45 38 67
Profit/(Loss) before tax 18 15 77 65 03 88

Income Tax Expense
- Income Tax realated to earlier years (17 41) 2 26 14
- Current Tax 8 28 80 25 00 00
- Deferred Tax (11 63 59) (1 93 22)
Total Tax Expense (3 52 20) 25 32 92
Profit/(Loss) after tax & before shares in profit of Associates 21 67 97 39 70 96
Share of Profit/(Loss) of Associates (Net) - 1 31
Profit/(Loss) after tax 21 67 97 39 72 27
Profit/(Loss) attribute to Owner of the Company 21 67 97 39 72 27
Profit/(Loss) attribute to Owner of Non Controlling Interest - -
Other Comprehensive Income
Items that may be reclassified to the Statement of Profit and Loss - -
Items that will not be reclassified to the Statement of Profit and Loss:
- Remeasurements of the Defined Benefit Plans 2 35 19 3 61 26
- Changes in fair values of investment in equities carried at fair value through OCI (4 24) 47
- Income tax relating to items that will not be reclassified to the Statement of Profit
and Loss (59 20) (1 26 24)
Other Comprehensive Income/(Loss) for the year, Net of Tax 1 71 75 2 35 49
Total Comprehensive Income/(Loss) for the year 23 39 72 42 07 76
Earnings per Equity Share (in Rupees) 28

(Nominal value of shares Rs.10 each)
- Basic 14.45 26.48
- Diluted 14.45 26.48

The accompanying Notes No. 2 to 55 are an integral part of these Consolidated Financial Statements
Director
DIN : 00193192
CA S. Rastogi
Proprietor
57
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020
(Rupees in ’000)
PARTICULARS Year ended March 31, 2020 Year ended March 31, 2019
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before tax 18 15 77 65 03 88
Adjustment for :
Depreciation & Amortization Expenses 32 57 53 32 74 92
(Profit)/Loss on sale/discard of Fixed Assets (net) (3 72) (26 15)
(Gain)/Loss on Foreign Exchange Fluctuation (22 70) (1 09 39)
Change in Fair Value of Investments (4 24) -
Interest (net) (6 79 53) (16 20 41)
(Gain)/Loss on Sale of Investments 5 23 66 30 71 00 (53) 15 18 44
Operating Profit before working capital changes 48 86 77 80 22 32
Adjustment for :
Trade and other receivables (19 69 18) 5 57 50
Inventories 16 46 58 (49 47 51)
Trade and other payables (7 45 51) (20 68 25)
Direct Taxes paid (net of refunds) (6 74 52) (17 42 63) (7 13 03) (71 71 29)
Net Cash flow from operating activities 31 44 14 8 51 03
B. CASH FLOW FROM INVESTING ACTIVITIES

(Increase)/Decrease in Capital Work-in-Progress (13 25 91) 92 90
Purchase of Fixed Assets (5 22 38) (13 49 67)
Sale / discard of Fixed Assets 90 05 1 41 76
Purchase of Investments (6 30) (95 18 97)
Sale of Investments 21 02 03 5 46 47
Loan/Deposit Given (Net) (9 00 00) 58 78 80
Interest Received 21 03 60 27 88 03
Gain/(Loss) on Foreign Exchange Fluctuation 22 70 1 09 39
Net Cash flow from investing activities 15 63 79 (13 11 29)
C. CASH FLOW FROM FINANCING ACTIVITIES

Changes in Share Capital - -
Receipt/(Repayment) of Borrowings (Net) 27 05 30 31 38 18
Interest Paid (14 25 32) (10 81 31)
Foreign Exchange Rate difference on borrowings 1 25 (86 31)
Net Cash flow from financing activities 12 81 23 19 70 56
Net increase in Cash and Cash Equivalents 59 89 16 15 10 30

Cash and Cash Equivalents : Opening Balance 1 66 29 87 1 51 19 57
Cash and Cash Equivalents : Closing Balance [Refer Note No. 8] 2 26 19 03 1 66 29 87
Supplementary Information
Restricted Cash and Cash Equivalents 1 43 18 44 1 35 76 98
Director
DIN : 00193192
CA S. Rastogi
Proprietor
58
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2020
A. EQUITY SHARE CAPITAL (Rupees in '000)
Equity Shares
PARTICULARS No. of Shares Amount in
Rupees
Balance as at April 1, 2018 15 00 07 82 15 00 08
B. OTHER EQUITY (Rupees in '000)

Capital Other
Securities General Retained
PARTICULARS Redemption Comprehensive Total
Premium Reserve Earnings
Reserve Income
Balance as at April 1, 2018 10 41 36 4 36 31 30 1 87 44 03 3 49 67 88 (4 31 91) 9 79 52 66
Other Comprehensive Income/(Loss) for the year - - - - 2 35 49 2 35 49
Balance as at March 31,2019 10 41 36 4 36 31 30 1 87 44 03 3 89 40 15 (1 96 42) 10 21 60 42
Other Comprehensive Income/(Loss) for the year - - - - 1 71 75 1 71 75
Balance as at March 31,2020 10 41 36 4 36 31 30 1 87 44 03 4 11 08 12 (24 67) 10 45 00 14
Footnote:
For purpose & nature of Other Equity, refer Footnote to Note No. 12
Director
DIN : 00193192
CA S. Rastogi
Proprietor
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2020
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Corporate Information
Hindusthan Enginnering Industries Limited (Holding Company) is a public Company domiciled in India & incorporated under the provision of the
erstwhile Companies Act, 1956. It is mainly engaged in production of Jute goods, Chemicals, Railway Wagons & Railway Rolling Stock.
The Registered Office of the Company is situated at 27, Sir R N Mukherjee Road, Kolkata - 700 001
II The consolidated financial statements presents the Consolidated Accounts of Hindusthan Engineering & Industries Limited with its Subsidiary
incorporated in India:
Particulars Proportion of ownership As at 31, March 2020
Subsidiary
Hindusthan Vidyut Corporation Ltd. 100%
III Additional information, as required under Schedule III to the Companies Act, 2013, of enterprises consolidated as subsidiary:
Net Assets i.e total assets minus total Share in Profit/(Loss)
Liabilities
Particulars
As % of Consolidated Amount As % of Amount
net Assets Consolidated Profit
Parents
Hindusthan Engineering & Industries Ltd. 100.00% 10 60 00 22 100.00% 23 39 72
Subsidiary ( Indian )
Hindusthan Vidyut Corporation Ltd. - - - -
Minority Interest in Subsidiary - - - -
Consolidated 100.00% 10 60 00 22 100.00% 23 39 72
Principles of Consolidation
The consolidated financial statements have been prepared on the following basis:
a) The financial statements of the Holding Company and its subsidiary company are combined on a line-by-line basis by adding together the
book values of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances and intra-group transactions
in accordance with Accounting Standard (AS) 21 - “Consolidated Financial Statements”.
b) The difference between the cost of investment in the subsidiary over the net assets at the time of acquisition of shares in the subsidiary
is recognised in the financial statements as Goodwill or Capital Reserve, as the case may be. However in case of consolidated financial
statement of Associates companies such Goodwill/ Capital Reserve has been disclosed by way of notes only.
c) Investment in Associate Companies has been accounted under the equity method as per Accounting Standard (AS) 23 - “Accounting for
Investments in Associates in Consolidated Financial Statements”. However, since the portion of net assets & profit/ loss as on the date
of acquisition of shares of respective associate company is not available, the same has been taken as per the latest audited financial
statements for the purpose of determining goodwill or capital reserve, as the case may be on consolidation and also for the purpose of
determining share of profit in Associates.
d) The Company accounts for its share of post acquisition changes in net assets of associates, after eliminating unrealised profits and losses
resulting from transactions between the Company and its associates to the extent of its share, through its Consolidated Profit and Loss
Statement, to the extent such change is attributable to the associate’s Profit and Loss Statement and through its reserves for the balance
based on available information.
e) The difference between the cost of investment in the associates and the share of net assets at the time of acquisition of shares in the
associates is identified / disclosed in the financial statements as Goodwill or Capital Reserve as the case may be.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2020 (Contd.)
Statement of Profit & Loss

The subsidiary of the Company is yet to commence commercial production and hence does not prepare Statement of Profit & Loss.
Statement of Compliance
These financial statements comply in all material aspects with Indian Accounting Standard (Ind AS) notified under the Companies (Indian
Accountings Standard) Rules, 2015 (as amended) read with section 133 of the Companies Act, 2013 (“the Act”) and other relevant provisions of
the Act.
Basis of Preparation
The Financial Statements have been prepared under the historical cost convention on accrual basis except for certain financial instruments that
are measured in terms of relevant Ind AS at fair values/ amortized costs at the end of each reporting period.
The consolidated Financial Statements are presented in Indian Rupees and all values are rounded off to the nearest to thousands except
otherwise stated.
Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date under current market conditions.
The company categorizes Assets and Liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed
for such measurement:
a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
b) Level 2: inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.
c) Level 3: inputs for the assets or liability which are not based on observable market data.
Property, Plant and Equipment
Property, Plant and Equipment (PPE) are stated at cost of acquisition or deemed cost on date of transition less accumulated depreciation and
impairment losses, if any. Cost of an asset comprises of purchase price, borrowing cost and any other cost directly attributable to bringing the
assest to its working condition for its intended use.
Capital work in progress includes machinery to be installed, construction and erection materials, borrowing costs, unallocated pre-operative and
other expenditures directly attributable towards construction and erection of the assets.
Depreciation on PPE commences when the assets are ready for their intended use.Depreciation has been provide on straight line method as per
the useful life specified under Schedule II to the Companies Act, 2013. Depreciation on incremental cost arising on account of exchange difference
is computed prospectively with respect to the residual life of respective asset.
Intangible Assets
Intangible assets are amortized over the useful life using straight line method and assessed for impairment whenever there is an indication of the
same. Accordingly, Intangible assets have been amortized over a period of 3 to 5 years on straight line basis.
Impairment of Tangible and Intangible Assets
Impairment of assets are assessed at each Balance Sheet date and loss is recognised whenever the recoverable amount of an asset is less
than its carrying amount. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of
recoverable amount
Financial Assets and Liabilities
Financial assets and financial liabilities (financial instruments) are recognized when company becomes a party to the contractual provisions of the
instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue
of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
The financial assets and financial liabilities are classified as current if they are expected to be realised or settled within operating cycle of the
company which is generally taken as 12 month otherwise these are classified as non- current.
61
The classification of financial instruments whether to be measured at amortized cost, at Fair Value Through Profit and Loss (FVTPL) or at Fair
Value Through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they relate.
Classification of financial instruments are determined on initial recognition.
(i) Financial assets and financial liabilities measured at Amortized Cost
Financial assets held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual
terms of the financial assets give rise on specified dates to cash flows are measured at amortized cost.
The financial assets and financial liabilities subsequent to initial recognition are measured at amortized cost using Effective Interest Rate (EIR)
method.
(ii) Financial Asset at Fair Value Through Other Comprehensive Income (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Subsequent to initial
recognition, they are measured at fair value and changes therein are recognized directly in other comprehensive income.
(iii) Financial Assets or Liabilities at Fair Value Through Profit or Loss (FVTPL)
Financial instruments which do not meet the criteria of amortized cost or fair value through other comprehensive income are measured at Fair
Value through Profit or Loss.
Impairment of financial assets
A financial asset is assessed for impairment at each reporting date. A financial asset is considered to be impaired if objective evidence indicates
that one or more events have had a negative effect on the estimated future cash flow of that asset.
The company measures the loss allowance for a financial assets at an amount equal to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since
initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.
However, for trade receivable or contract assets that result in relation to revenue from contracts with customers, the company measures the loss
allowance at an amount equal to lifetime expected credit losses.
De-recognition of financial instruments
The company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
Financial liabilities are derecognized if the company’s obligations specified in the contract expire or are discharged or cancelled. The difference
between the carrying amount of the financial liability/assets derecognized and the consideration there aganist is recognized in Statement of Profit
and Loss.
Inventories
Inventories are stated at lower of cost & net realisable value. Inventory of finished goods, where the products are made under specific orders, are
recognized only on approval of the product by the prospective buyer. The cost for the purpose of valuation of raw materials is being computed
on FIFO basis except in case of Jute & Chemical Units where weighted average method is being followed. Cost for the purpose of valuation
of stores and spares is computed on weighted average method. Cost of work-in-progress and finished goods represents estimated cost of raw
materials, direct labour and appropriate portion of factory overhead in most of the cases.
The liability for GST on the bonded materials as at the end of the year are duly provided for. No provision is made of GST on finished goods as
at the year end.
Foreign Currency Transactions
Transactions in foreign currencies are accounted for at the exchange rate prevailing at the time of the transaction. Foreign currency monetary
assets and liabilities at the year end are translated using closing exchange rates. The loss or gain thereon and also on the exchange differences on
settlement of foreign currency transactions during the year (except those relating to the fixed assets which are adjusted to the cost of the assets)
are recognised as income or expense and are adjusted to the Statement of Profit and Loss
62
Revenue
Sales
Sales exclude GST and are accounted for on passing of property of goods irrespective of actual despatches. Rebates, discounts, claims and other
non-recoverables are excluded therefrom.
Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest income is accounted on time proportion basis taking
into account amount outstanding & rate applicable unless otherwise stated. Insurance claims/ other claims are accounted as and when admitted/
determined.
GST Credit
GST Credit admissible against GST paid on goods / Fixed Assets are accounted for by reducing the purchase cost of the related goods / Fixed
Assets.
Employee Benefits
Contributions to defined Schemes such as Provident Fund / Pension Fund, Employees State Insurance Scheme are charged to Statement of Profit
& Loss on accrual basis. The Company also provides for gratuity and leave encashment in accordance with projected Unit Credit Method based
on actuarial valuation carried out as at the balance sheet date.
Borrowing Cost
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in
the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE)
which are capitalized to the cost of the related assets. A qualifying PPE is an asset , that necessarily takes a substantial period of time to get ready
for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
Research and Development
Expenditure on research and development except capital expenses which are shown as additions to fixed assets, are charged to Statement of
Profit and Loss in the year in which these are incurred
Leases
Determining whether an arrangement contains a lease
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease.
The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
Company as lessor
Finance Lease
Leases which effectively transfer to the lessee substantially all the risks and benefits incidental to ownership of the leased item are classified and
accounted for as finance lease. Lease rental receipts are apportioned between the finance income and capital repayment based on the implicit
rate of return. Contingent rents are recognized as revenue in the period in which they are earned.
Operating Lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease except where scheduled increase
in rent compensates the Company with expected inflationary costs.
Company as Lessee
The Company’s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease,
at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset
through the period of the lease and (iii) the Company has the right to direct the use of the asset.
63
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.
For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over
the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the
underlying assets as below:
Right of Use Assets
The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right of use assets are measured at cost, less any accumulated depreciation and impairment loss, if any, and adjusted for any remeasurement of
lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments
made at or before the commencement date less any lease incentives received. Right of use assets are depreciated on a straight-line basis over
the shorter of the lease term and the estimated useful lives of the underlying assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset. The right of use assets are also subject to impairment.
Government Grants
Government grants are recognized on systematic basis when there is reasonable certainty of realization of the same. Revenue grants including
subsidy/rebates are credited to Statement of Profit and Loss Account under “Other Income” or deducted from the related expenses for the period
to which these are related. Grants which are meant for purchase, construction or otherwise for acquisition of non current assets are credited to
respective assets.
Taxes on Income
Provision for current tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961. Deferred tax
resulting from “timing difference” between taxable and accounting income is accounted for using the tax rates and laws enacted or substantively
enacted on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the
asset will be realized in future. Deferred Tax Assets & Deferred Tax Liabilities have been offset as they relate to the same governing tax laws.
Provisions, Contingent liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events
and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent
Assets are neither recognized nor disclosed in the financial statement.
Earning Per Share
Basic earning per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number
of equity shares outstanding during the period. Diluted earning per share is computed by dividing the net profit attributable to the equity holders of
the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
Cash Flow
Cash flows are reported using indirect method, whereby profit for the year is adjusted for the effects of transactions of non-cash nature and/or for
items of income & expenses associated with investing and financing activities. The cash flows from operating, investing & financing activities of
the company are segregated.
64
Note : 2 PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS (Amount in '000)
PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS
Electrical
Right Installation, Motor Total Goodwill Total
Land Land - Railway Tools & Computer
Particulars of Use Water & Furniture Cars & Tangible on Intangible
Freehold Leasehold Buildings Machinery Siding Implements Software
Assets Sanitation & Fixture Vehicles Assets Merger Assets
System
Gross Carrying amount as at 13 61 28 1 97 11 - 24 46 25 4 12 67 62 18 84 72 72 9 70 1 11 61 4 86 34 4 59 71 47 27 95 13 90 62 14 18 57
March 31, 2018
Addition - - - 1 21 46 10 97 73 - 28 18 1 04 20 98 79 85 13 49 24 43 - 43
Disposal/Adjustments - - - 3 50 1 03 46 - - - 12 54 85 1 61 93 - - -
Gross Carrying amount as at 13 61 28 1 97 11 - 25 64 21 4 22 61 89 18 84 1 00 90 10 74 1 32 47 5 11 34 4 71 58 78 28 38 13 90 62 14 19 00
March 31, 2019
Reclassified on adoption of - (1 97 11) 1 85 69 - - - - - - - (11 42) - - -
Ind AS 116 "Leases"
Addition - - - 5 37 4 76 12 - 10 19 1 62 4 51 23 78 5 21 59 79 - 79
Disposal/Adjustments - - - - 1 59 04 - - - - 25 81 1 84 85 - - -
Gross Carrying amount as at 13 61 28 - 1 85 69 25 69 58 4 25 78 97 18 84 1 11 09 12 36 1 36 98 5 09 31 4 74 84 10 29 17 13 90 62 14 19 79
March 31, 2020
Depreciation & Amortization
As at April 1, 2018 - 8 60 - 5 58 57 85 36 51 2 95 8 36 2 05 33 73 1 92 51 93 43 28 22 77 - 22 77
Charge for the year - 2 82 - 1 75 64 30 09 14 65 5 28 64 11 82 63 95 32 69 94 5 04 - 5 04
Disposal/Adjustments - - - 3 33 4 27 - - - 11 38 61 46 32 - - -
Total Depreciation/ - 11 42 - 7 30 88 1 15 41 38 3 60 13 64 2 69 45 44 2 17 85 1 25 66 90 27 81 - 27 81
Amortisation upto March 31,
2019
Reclassified on adoption of - (1,142) - - - - - - - - (1,142) - - -
Ind AS 116 “Leases”
Charge for the year - - 2 77 1 71 74 30 00 58 65 6 94 83 13 18 60 61 32 57 30 28 - 28
Disposal/Adjustments - - - - 77 55 - - - - 20 97 98 52 - - -
Total Depreciation/ - - 2 77 9 02 62 1 44 64 41 4 25 20 58 3 52 58 62 2 57 49 1 57 14 26 28 09 - 28 09
Amortisation upto March 31,
2020
Net Block
As at March 31, 2019 13 61 28 1 85 69 - 18 33 33 3 07 20 51 15 24 87 26 8 05 87 03 2 93 49 3 45 91 89 57 13 90 62 13 91 19
As at March 31, 2020 13 61 28 - 1 82 92 16 66 96 2 81 14 56 14 59 90 51 8 84 78 36 2 51 82 3 17 69 84 1 08 13 90 62 13 91 70
Footnote :
i) Land includes 49 acres which is jointly held with The North Brook Jute Co Ltd in which the Company's share is approx 50% i.e. 24.462 acres. The proportionate original cost of jointly held land is Rs 4 71.
ii) Capital Subsidy received during the year Rs.77 40 (PY - Rs.32 58) in respect of acquisition/construction of Building and Machinery has been included in disposal/adjustment and depreciation for the
year has been calculated on the reduced value of respective assets.
iii) The Net block of leasehold land of Rs 1 85 69 ( Gross Block of Rs 1 97 11 & Accumulated Depreciation of Rs 11 42) as on 01.04.2019 has been re classified to " Right of Use Assets on account of
adoption of Ind AS 116" Leases".
65
Note : 3 CAPITAL WORK IN PROGRESS (Rupees in '000)
Non-Current
PARTICULARS As at March As at March
31, 2020 31, 2019
Capital Work-in-Progress 51 22 55 37 96 58
Total 51 22 55 37 96 58
Note : 4 INVESTMENTS (Rupees in '000)

PARTICULARS
31, 2020 31, 2019
Non-Current Investments
A. Investment Carried at Cost
Unquoted Equity Shares
i) Associate Company
NIL (PY: 1,26,320) Equity Shares of Rs.10/- each in Kanchan Stocks Pvt. Ltd. - 7 56 87
NIL (PY: 1,21,320) Equity Shares of Rs.10/- each in Superb Finance Pvt. Ltd. - 7 10 14
NIL (PY: 1,20,100) Equity Shares of Rs.10/- each in Support Holdings Pvt.Ltd. - 5 83 16
Nil (PY: 1,22,500) Equity Shares of Rs.10/- each in Unique Stocks Pvt.Ltd. - 5 75 52
Unquoted Preference Shares
9,51,89,700 ( PY: 9,51,89,700 ) Redeemable 1% non-cumulative , non-convertible Preference Share of Rs. 10/ each 95 18 97 95 18 97
in Hindusthan Urban Infrastructure Ltd.
B. Invetsment Carried at Fair Value Through OCI
Other than Associate Company-Unquoted Equity Shares
1,250 (PY: 1,250) equity shares of Rs.10/- each in Woodland Multispeciality Hospital Ltd. 13 13
Total 95 19 10 1 21 44 79
Current Investments
Invetsment Carried at Fair Value Through OCI
Invetsment In Units of Mutual Fund (Unquoted)
HDFC Growth Opportunity Fund -Regular Plan - Growth (Units -7,800, PY: Nil) 6 30 -
Total 6 30 -
Note : 5 OTHER ASSETS (Rupees in '000)

Non-Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Security Deposits
- To Related Parties (Note No.42) 2 13 97 2 24 77 10 80 10 80
- To Others 16 42 36 11 76 05 15 00 15 00
Loans & Advances
- To Employees 70 83 60 42 74 91 80 59
- To Suppliers - - 14 15 78 11 13 00
- To Others 97 - 2 49 18 12 65 57
Other Receivables - - 1 60 69 24 09
Prepaid Expenses - - 77 99 3 96
Assets held for Disposal - - 8 66 8 66
Payment of Income Tax (Net of Provisions) 31 22 63 33 18 33 - 37
Balance with Statutory Authorities 14 14 41 08 41 45 20 56
Total 50 50 90 47 79 71 61 21 42 70 42 60
Footnote:
Payment of Income Tax (Net of Provisions) includes Rs. 10 32 (P.Y. : Rs.10 32) on account of TDS, credit of which is subject to admittance by the Tax
Authorities & is net of Rs. 1 81 69 (P.Y.: Rs. 1 81 69) on account of tax refund received details for which are not available. Adjustment for any short/excess
received & interest included therein shall be made on receipt of such details.
66
Note : 6 INVENTORIES (Rupees in '000)
PARTICULARS
31, 2020 31, 2019
(At lower of cost & net realisable value; as taken, valued and certified by the Management)
- Raw Materials 92 03 17 1 48 95 00
- Stores and Spares 20 27 80 19 08 86
- Loose Tools 3 53 77 3 51 63
- Work-In-Progress 1 09 00 10 72 03 51
- Finished Goods 15 35 37 13 07 79
Total 2 40 20 21 2 56 66 79
Note : 7 TRADE RECEIVABLES (Rupees in '000)

PARTICULARS
31, 2020 31, 2019
Unsecured, Considered Good 1 54 73 41 1 37 90 84
Total 1 54 73 41 1 37 90 84
Note : 8 CASH AND CASH EQUIVALENTS (Rupees in '000)

PARTICULARS
31, 2020 31, 2019
Balances with Banks
- In Current/Cash Credit Account 10 59 24 24 22 36
- In Deposit Account (Margin Money Deposit) 1 41 23 73 1 32 69 94
- In Deposit Account 73 96 34 8 87 30
Cash in hand 39 72 50 27
Total 2 26 19 03 1 66 29 87
Footnote:
i) Balances in Deposit Account (including Margin Money) include Deposit with more than 12 months maturity Rs. 71 95 16 (PY: Rs. 19 07 03)
ii) Balance in Cash Credit / Current Account includes Rs. 1 94 71 (PY: Rs. 3 07 04) lying in accounts earmarked for redemption of Debentures/Shares.
iii) Balances with Banks Rs. 1 99 30 (PY: Rs. 1 94 58) are subject to confirmation.
Note : 9 LOANS (Rupees in '000)

Non-current Current
31, 2020 31, 2019 31, 2020 31, 2019
Loans
- To Related Parties (Note No.42) - - 35 22 30 20 22 30
- To Others - - 87 10 25 87 10 25
Total - - 1 22 32 55 1 07 32 55
Note : 10 OTHER FINANCIAL ASSETS (Rupees in '000)

Non-current Current
31, 2020 31, 2019 31, 2020 31, 2019
Deposits with Companies - - 11 00 00 17 00 00
Loans & Advances
-To Others - - 1 59 64 1 65 34
Interest Receivable
- from Related Parties (Note No.42) - - 72 69 35 72 31 08
- from Others - - 26 15 86 19 07 90
Total - - 1 11 44 85 1 10 04 32
67
Note : 11 EQUITY SHARE CAPITAL (Rupees in '000)
PARTICULARS Equity Shares of Rs.10/- each Preference Shares of Rs.10/- each
Authorised Share Capital No. of Shares Amount No. of Shares Amount
As at April 1, 2018 20 00 00 00 20 00 00 5 00 00 00 5 00 00
As at March 31, 2019 20 00 00 00 20 00 00 5 00 00 00 5 00 00
As at March 31, 2020 20 00 00 00 20 00 00 5 00 00 00 5 00 00
Issued Share Capital
Equity shares of Rs. 10 each issued, subscribed and fully paid No. of Shares Amount
As at April 1, 2018 15 00 07 82 15 00 08
As at March 31, 2019 15 00 07 82 15 00 08
As at March 31, 2020 15 00 07 82 15 00 08
Term/Rights attached to Equity Shares
The company has only one class of shares outstanding viz. Equity Shares having a par value of Rs. 10/- each. Each shareholder is eligible for one
vote per share & is entitled to pro-rata dividend, if any, declared on equity shares. In the event of liquidation, the equity shareholders are eligible
to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholdings.
Details of shareholders holding more than 5% shares in the company
No. of Shares % holding No. of Shares % holding
Hindusthan Consultancy & Services Ltd * 6 05 89 67 40.39% 1 80 23 13 12.01%
Promain Ltd 1 43 41 27 9.56% 1 43 41 27 9.56%
Deutsche Bank Trust Company Americas 97 72 04 6.51% 97 72 04 6.51%
Magnum Traders Limited - - 76 49 00 5.10%
* Out of above, 32,71,234 shares have vested in Hindusthan Consultancy & Services Ltd.by order of Hon’ble NCLT dated 25th November,2019, w.e.f.
1st April 2018, these shares were held in the name of transferor companies as on the Balance sheet date and have been subsequently transferred in the
name of Hindusthan Consultancy & Services Ltd, the transferee Company.
Note : 12 OTHER EQUITY (Rupees in '000)
PARTICULARS As at March 31, As at March 31,
2020 2019
A. CAPITAL REDEMPTION RESERVE
Balance as at the beginning/end of the year 10 41 36 10 41 36
B. SECURITIES PREMIUM
C. GENERAL RESERVE
D. RETAINED EARNINGS
Balance as at the beginning of the year 3 89 40 15 3 49 67 88
Net Profit/(Loss) for the year 21 67 97 39 72 27
Balance as at the end of the year 4 11 08 12 3 89 40 15
E. OTHER COMPREHENSIVE INCOME
Balance as at the beginning of the year (1 96 42) (4 31 91)
Other Comprehensive Income for the year 1 71 75 2 35 49
Balance as at the end of the year (24 67) (1 96 42)
Total 10 45 00 14 10 21 60 42
Footnote :
Nature & Purpose of Other Equity:
i) Capital Redemption Reserve represents amount created on account of buyback/redemption of shares in earlier years.
ii) Securities Premium represents amount received in excess of par value of shares issued.
iii) General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes.
iv) Retained Earnings generally represent the undistributed profits/amount of accumulated earnings of the Company. It includes Rs. 8 04 79
represented by Revaluation Reserve as on the date of the transition which is not available for distribution as dividend.
v) Other Comprehensive Income represents the balance in equity relating to gain/losses on re-measurement of defined benefit obligations.
This will not be reclassified to Statement of Profit and Loss.
68
Note : 13 BORROWINGS (Rupees in '000)

Non-Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Buyer's credit in foreign currency (Secured) - - 2 59 19 4 74 35
Acceptance - Inland Bills Discounting (Secured) - - 55 59 03 70 35 53
Working Capital Demand Loan from Banks (Secured) - - 9 00 00 -
Bank Overdraft (Secured) - - 40 04 73 13 33 46
Interest free Sales Tax Loan (Unsecured) 47 84 79 73 1 75 41 1 43 51
Loan from WBIDC (Unsecured) - - 1 00 55 1 00 55
Term Loan from Bank (Secured) - 6 75 11 22 31 53
Cash Credit from Banks (Secured) - - 32 53 00 24 00 26
Total 47 84 86 48 1 42 63 13 1 15 19 19
Footnote:
i) Interest free Sales Tax Loan is repayable in Half yearly equal installments over a period of 7 years after an initial moratorium of 3 years from
4th September, 2012 (date of sanction of Rehabilitation Scheme by Hon'ble BIFR). Accordingly, installments falling due within next 12 months
have been shown as current.
ii) Loan from WBIDC is adjustable against power subsidy receivable from Govt. of West Bengal, claim for which has been lodged by the Company
& the matter is sub-judice in the Hon'ble High Court at Kolkata. Adjustment, if any, shall be made on final adjudication.
iii) Letter of Credits, Letter of Guarantees, Buyers' Credit, Demand Loan, Bank Overdraft & Cash Credit are secured by hypothecation of Book
Debts, Inventories & pledge of fixed deposits held as margin. These are further secured by 1st charge over fixed assets of Bamunari, Tiljala &
Santragachi Plants.
iv) Term loan of Rs. 4 40 (PY Rs. NIL) carries interest rate of 11.95% p.a as at the year end & the same is repaybale in twelve equal installmement
with effect from June 2019 and it is secured by hypothecation of fixed movable fixed assets acquired out of said term loan.
v) Term loan of Rs. 6 82 (PY Rs. 32 19) carries interest rate of 11.00% p.a as at the year end & the same is repaybale in twenty four equal
installmement with effect from July 2018 and it is secured by hypothecation of fixed movable fixed asstets acquired out of said term loan.
vi) Term loan of Rs. NIL (PY Rs. 5 82 ) carries interest rate of 12.00% p.a as at the year end & the same is repaybale in twelve equal installmement
with effect from September 2018 and it is secured by hypothecation of fixed movable fixed asstets acquired out of said term loan.
vii) Term loan of Rs. NIL (PY Rs. 27) carries interest rate of 12.05% p.a as at the year end & the same is repaybale in six equal installmement with
effect from March 2019 and it is secured by hypothecation of fixed movable fixed asstets acquired out of said term loan.
Note : 14 TRADE PAYABLES (Rupees in '000)

Non- Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Trade Payables
- Due to Micro, Medium and Small Enterprise - - - -
- Others - - 1,003,194 964,127
Total - - 1,003,194 964,127
Footnote:
On the basis of information available with the company, no supplier has given intimation to the company about registration under MSMED Act,
2006. Hence no information is available with the company about any due payable to any of such supplier or any delay in payment thereof.
69
Note : 15 OTHER FINANCIAL LIABILITIES (Rupees in '000)

Non-Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Interest accrued & not due on Borrowings - - 67 77 1 58 60
Security Deposit from Dealers - - 28 10 28 10
Other Payables - - 27 15 36 26 22 22
Unclaimed Equity Shares Redemption Proceeds - - - 42 67
Unclaimed Debentures Redemption Proceeds - - 1 99 30 2 64 37
Total - - 30 10 53 31 15 96
Note : 16 DEFERRED TAX LIABILITIES (Rupees in '000)

PARTICULARS
31, 2020 31, 2019
I Deferred Tax Liabilities
Timing differences in respect of depreciation 40 92 17 59 55 95
40 92 17 59 55 95
II Deferred Tax Assets
Timing differences in respect of Expenses 17 60 46 24 60 65
17 60 46 24 60 65
Deferred Tax Liability (Net) ( I - II ) 23 31 71 34 95 30
Note : 17 PROVISIONS (Rupees in '000)

Non-Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Provision for Employee Benefits
- Gratutiy 55 82 01 57 02 16 7 27 32 7 45 40
- Leave Encashment 3 64 20 3 07 11 69 09 71 37
Total 59 46 21 60 09 27 7 96 41 8 16 77
Note : 18 OTHER LIABILITIES (Rupees in '000)

Non-Current Current
31, 2020 31, 2019 31, 2020 31, 2019
Statutory Liabilities - - 4 30 33 5 44 29
Advance from Customers - - 11 12 33 21 96 45
Other Payables - - 5 01 56 4 86 00
Total - - 20 44 22 32 26 74
70
Note : 19 REVENUE FROM OPERATIONS (Rupees in '000)
PARTICULARS
March 31, 2020 March 31, 2019
Sale of Products
i) Manufactured Goods
- Ammonium Sulphate 45 52 1 88 30
- Cyanide 54 61 20 1 22 63 85
- Diphenyl Guanidine 6 16 9 01 14
- Mandelonitrile 19 55 60 22 13 94
- MPBAD Cyanohydrin 5 17 96 11 10 19
- Jute Goods 3 21 05 48 2 87 04 02
- Points & Crossing 45 43 17 40 75 78
- Railway Rolling Stock 2 69 95 33 2 63 23 70
- Steel Casting 40 73 03 84 61 20
- Others 2 87 78 10 00 21
7 59 91 23 8 52 42 33
ii) Stock in Trade
- Cyanide 40 61 19 1 23 30
- Others - 9 80 28
Total Revenue from Contracts with Customers 8 00 52 42 8 63 45 91
Other Operating Revenue
- Income from Electricity Generation 2 38 57 3 07 73
- Export-Import Benefit/Incentive 5 35 1 02 93
- Scrap/Raw Material Sales 7 22 18 11 77 93
Total 8 10 18 52 8 79 34 50
PARTICULARS
March 31, 2020 March 31, 2019
Disaggregation of Revenue
Revenue Based on Geography
Within India 8 10 18 52 8 75 82 98
Outside India - 3 51 52
8 10 18 52 8 79 34 50
Revenue Based on Business Segment
Chemical 1 23 48 69 1 87 77 46
Jute 3 21 54 58 2 88 07 89
Enginnering 3 65 15 25 4 03 49 15
8 10 18 52 8 79 34 50
Reconcilliation of Revenue From Operation with Contract
Price
Revenue as per contracted price 8 30 74 43 8 84 98 30
Adjustments
Sales return 32 17 9 65
Rate Difference/Deesclation 19 69 84 3 45 59
Quantity Claim 3 12 1 53
Discounts 50 78 2 07 03
Total 8 10 18 52 8 79 34 50
71
Note : 20 OTHER INCOME (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Interest Income (Gross) 21 03 60 27 88 03
Net Gain on Sale/Discard of Fixed Assets 3 72 26 15
Net Gain on Sale of Investments - 53
Sundry Balances W/Back(Net) - 1 60 71
Net Gain on Foreign Exchange Fluctuation 22 70 1 09 39
Other Non Operating Income 20 86 23 24
Total 21 50 88 31 08 05
Note : 21 COST OF MATERIALS CONSUMED (Rupees in '000)

Inventory at the beginning of the year 1 48 95 00 1 02 98 10
Add: Purchases during the year 4 13 79 95 5 54 54 42
Less: Inventory at the end of the year (92 03 17) (1 48 95 00)
Total 4 70 71 78 5 08 57 52
Details of Raw Materials Consumed
Castic Soda/Potash 6 89 63 21 52 32
Ammonia Liquid 6 27 66 12 48 12
Natural Gas 2 87 93 6 70 08
Raw Jute 1 90 79 96 1 72 74 20
Scrap 17 97 70 24 05 48
Steel 2 30 35 46 2 44 40 93
Others 15 53 44 26 66 39
Total 4 70 71 78 5 08 57 52
Breakup of Consumption of Raw Materials %age Amount %age Amount
Imported 4.00% 18 82 87 4.51% 22 92 38
Indigenous 96.00% 4 51 88 91 95.49% 4 85 65 14
100.00% 4 70 71 78 100.00% 5 08 57 52
Note 22 PURCHASE OF STOCK-IN-TRADE (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Purchase of Stock in Trade 35 69 82 4 20 42
Total 35 69 82 4 20 42
Note : 23 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS & STOCK IN TRADE (Rupees in '000)
PARTICULARS
March 31, 2020 March 31, 2019
Inventories (Opening Stock)
- Finished Goods 11 32 44 9 50 04
- Stock in Trade 1 75 35 9 54 11
- Work-in-Progress 72 03 51 62 42 90
85 11 30 81 47 05
Inventories (Closing Stock)
- Finished Goods 15 34 71 11 32 44
- Stock in Trade 66 1 75 35
- Work-in-Progress 1 09 00 10 72 03 51
1 24 35 47 85 11 30
Net (Increase) / Decrease (39 24 17) (3 64 25)
72
Note : 24 EMPLOYEE BENEFIT EXPENSES (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Salaries, Wages and Other Allowances 1 13 58 18 1 16 38 76
Contribution to Provident and Other Funds 10 12 43 11 13 73
Staff Welfare Expenses 1 08 85 1 03 95
Total 1 24 79 46 1 28 56 44
Note : 25 FINANCE COST (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Interest Expense 14 25 32 10 81 31
Foreign Exchange rate difference applicable to borrowing cost (1 25) 86 31
Total 14 24 07 11 67 62
Note : 26 DEPRECIATION & AMORTISATION EXPENSES (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Depreciation on Tangible Assets 32 57 25 32 69 88
Amortization of Intangible Assets 28 5 04
Total 32 57 53 32 74 92
Note : 27 OTHER EXPENSES (Rupees in '000)

Consumption of Stores & Spares 52 62 02 39 26 89
Power, Fuel & Water Charges 47 64 63 56 23 30
Payment to Auditors
- Statutory Audit Fee 2 12 2 12
Brokerage & Commission 2 82 10 4 61 94
Bank Charges 6 03 63 6 01 64
Charity & Donation * 1 03 42 63 80
Director Fee 4 75 4 35
Freight & Transport (Net) 4 35 32 7 81 33
Insurance Charges 1 54 77 66 47
Rent (Net) 89 28 83 96
Rates & Taxes (Includes Rs 87 74 relating to earlier years) 2 86 01 70 44
Repairs
- Building 2 08 92 1 56 28
- Machinery 5 44 65 4 69 10
- Others 5 99 40 4 82 86
Research & Development Expenses 24 60 30 51
Jobs on Contract 18 33 94 23 33 87
Sundry Debtors/Balances Written off (Net) 63 69 -
Travelling & Conveyance 1 92 15 1 99 31
Net Loss on Sale of Investment 5 23 66 -
Miscellaneous Expenses 14 96 08 9 67 83
Total 1 74 75 14 1 63 26 00
Breakup of Consumption of Stores & Spares % age Amount % age Amount
Imported 0.05% 2 50 1.16% 45 63
Indigenous 99.95% 52 59 52 98.84% 38 81 26
Total 100.00% 52 62 02 100.00% 39 26 89
Footnote :
* Includes amount paid on account of Corporate Social Responsibility (CSR) activities Rs. 1 01 00 (P.Y: Rs. 60 80).
73
Note : 28 EARNING PER SHARE (Rupees in '000)

PARTICULARS
March 31, 2020 March 31, 2019
Number of Weighted Average Equity Shares outstanding at year end 15 00 07 82 15 00 07 82
Nominal Value of each Equity Share (Rs.) 10 10
Profit attributable to equity shareholders 21 67 97 39 70 96
Earning per Share
- Basic (Rs) 14.45 26.48
- Diluted (Rs) 14.45 26.48
29 Malanpur Steel Ltd.(MSL) had been merged with the company with retrospective effect from 1st April 2009 as per “Scheme” sanctioned by
the Board for Industrial & Financial Reconstruction (BIFR) vide its Order dated 4th September 2012.
Certain amounts claimed by different authorities against which necessary provision had been made in the scheme have not been provided
for in these accounts as these are claimed to be not payable by the company & are under reconciliation with respective authorities. The same
have been disclosed as contingent liability in these accounts. Reliefs / concessions claimed from various statutory authorities viz. Income Tax,
Sales Tax & Excise are under consideration of respective authorities & approvals of the same are awaited. However, the effects thereof have
been taken in these accounts. Necessary adjustment, if required, shall be made on disposal thereof by respective authorities.
(Rupees in ‘000)
30 Contingent Liabilities not Provided for As at March 31, As at March 31,
2020 2019
Claims against the Company not acknowledged as debts (to the extent ascertained )
(i) Sales Tax matters under appeal 42 99 34 29 54 00
Net of payment already made & Included in Loans & Advances Rs. 2 82 45 (PY: Rs. 2 75 04)
(ii) Central Excise matters under appeal 9 40 45 16 80 72
Net of payment already made & Included in Loans & Advances Rs.8 24 59 (PY: Rs. 8 24 59)
(iii) Service Tax maters under appeal 46 56 43 06
Net of payment already made & Included in Loans & Advances Nil (P.Y. Nil)
(iv) Income Tax demand under appeal/subject to rectification 2 14 15 2 14 15
Net of payments Rs 4 43 28 (PY 4 43 28)
(v) Others 83 02 88 82 77 67
Net of payment already made & included in Security Deposits Rs. 20 00 (PY: Rs. 20 00)
31 Capital Commitments not provided for (Net of advances) 8 50 79 7 52 77
(Rupees in ‘000)
32 Expenses include following payments to Wholetime Director (s) :- For the year For the year
2020 2019
Salary and other allowances 41 36 38 26

Contribution to Provident Fund 2 19 2 19
(Rupees in ‘000)
33 Research and Development expenses include : For the year For the year
2020 2019
Employee Benefit Expenses 23 62 29 19

Stores and Spares Consumed 98 1 02
Miscellaneous Expenses - 30
34 In terms of Orders of Hon'ble Calcutta High Court in respect of certain loans given in earlier years and remaining outstanding Rs. 20 22 30
(PY: Rs. 20 22 30), interest for the period from 1st April 1997 stands wavied and the same has therefore not accured. However, interest
thereon already accrued and accounted for upto 31st March 1997 are being recovered where principal amounts have been fully realized and
amount outstanding is Rs. 72 31 08 (PY: Rs. 72 31 08).
74
35 Loans to other include Rs. 5 00 00 (PY: Rs. 5 00 00) which are overdue for payment. Necessary steps for recovery are being taken & pursued
by the Company. Interest on such loans, considering the uncertainty as to the realization, shall be accounted for on receipt thereof.
36 Balances of Trade Receivables, Security Deposits, Advances, Trade Payables, Statutory Dues/claims & Other Payables are subject to
confirmation and consequential reconciliation / adjustments.
37 Trade Receivables and Advances aggregating to Rs. 12 21 63 (PY: Rs. 79 82 20), pending outcome of persuasive and other steps being
taken by the company, are considered good and recoverable.
38 The Subsidiary of the Company was awarded the aforesaid Integrated Lignite Mining-cum-Power Generation Project through International
Competitive Bidding by Government of Rajasthan (GOR) in 1996. Necessary Implementation Agreement and Power Purchase Agreement
were signed by the Company with the concerned Authorities. The Company obtained all the approvals required by making all out efforts
and incurring huge expenses. However, even after a period of 4 years, GOR was unable to give the Mining Lease Approval, which is an
essential pre-requisite for setting up the plant as Mining was an integral part of the project as per tender conditions. This failure on the part
of GOR halted the project and nothing could move further. GOR, thereafter, declared the Implementation Agreement ineffective. The matter
was referred to arbitration between the Company and GOR. The Arbitral Tribunal vide its Award dated 2.1.2007, has awarded a sum of
Rs.1,14,033/- to the company with future interest against GOR. The objections filed by GOR in the court of District Judge, Jaipur City, Jaipur
have been rejected and award has been upheld by the court. GOR has filed an appeal before Hon’ble High Court of Rajasthan at Jaipur.
39 Investment in Subsidiary
Statement containing salient features of the financial statement of Subsidiaries & Associate Companies.
Part A- Subsidiary Company: (Rs. in '000)
Name of the Subsidiary Hindusthan Vidyut Corporation Limited
The date since when subsidiary was acquired 05.03.2014
Reporting period for the subsidiary concerned, if different from the holding Company’s reporting period No
Reporting currency and Exchange rate as on the last date of the relevant financial year in case of Foreign N.A
Subsidiary
Share Capital 1 40 15
Reserves & Surplus -
Total Assets 12 11 62
Total Liabilities 10 71 46
Investments -
Turnover -
Profit before taxation -
Provision for taxation -
Profit after taxation -
Proposed Dividend -
% of shareholding 100%
Notes
Name of the Subsidiary which are yet to commence the operation Hindusthan Vidyut Corp. Ltd.
Name of the Subsidiary which have been liquidated or sold during the year None
75
40 a) Information about Business segments (Rupees in '000)

Chemicals Jute Goods Engineering Total
2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
REVENUE
External Sales/Other Income (Gross) 1 23 48 69 1 87 77 46 3 21 54 58 2 88 07 89 3 65 15 25 4 03 49 15 8 10 18 52 8 79 34 50
Inter-segment Sales/Other Income - - 3 35 1 54 - - 3 35 1 54
Total Revenue 1 23 48 69 1 87 77 46 3 21 57 93 2 88 09 43 3 65 15 25 4 03 49 15 8 10 21 87 8 79 36 04
RESULT 10 78 33 51 33 87 13 19 51 1 97 53 13 07 90 14 21 29 37 05 74 67 52 69
Unallocated Expenses (Net of 20 45 84 18 69 75
Unallocated Income)
Operating profit 16 59 90 48 82 94
Interest Expenses 14 24 07 11 67 62
Interest / Dividend Income 21 03 60 27 88 03
Net Gain/(Loss) on sale of Investments (4 36 03) 53
Income Taxes
Current Tax 8 11 39 27 26 14
Deferred Tax (11 63 59) (1 93 22)
Net Profit 22 55 60 39 70 96
OTHER INFORMATION
Segment assets 92 75 57 1 03 34 49 92 89 00 80 64 79 4 75 56 01 4 89 28 85 6 61 20 58 6 73 28 13
Unallocated assets 7 83 51 63 7 42 43 34
Total assets 14 44 72 21 14 15 71 47
Segment liabilities 15 82 79 17 26 50 95 90 96 86 99 41 1 00 41 72 1 17 02 01 2 12 15 47 2 21 27 92
Unallocated Liabilities 1 72 56 52 1 60 46 03
Capital expenditure (Including CWIP) 5 85 73 2 94 63 11 62 55 7 47 72 91 49 2 13 49 18 39 77 12 55 84
Unallocated 11 94 09 42
Total 30 33 86 12 56 26
Depreciation 6 18 19 6 89 49 2 96 22 2 39 62 6 53 20 6 52 49 15 67 61 15 81 60
Unallocated 16 89 91 16 93 32
Total 32 57 53 32 74 92
Break-up of Segment Revenue:-
Sales 1 20 47 63 1 84 36 63 3 21 05 48 2 87 04 02 3 58 99 32 3 92 05 27 8 00 52 43 8 63 45 92
Other Income
Export Incentive - 2 76 - - 5 35 1 00 16 5 35 1 02 92
Other Operating Income 3 01 06 3 38 07 49 10 1 03 87 6 10 58 10 43 72 9 60 74 14 85 66
Total Revenue 1 23 48 69 1 87 77 46 3 21 54 58 2 88 07 89 3 65 15 25 4 03 49 15 8 10 18 52 8 79 34 50
76
b) Operating segments are defined as components of an enterprise for which discerete financial information is available which is evaluated
regularly by the Chief Financial Officer in deciding how to allocate resources & assess performance.
c) Based on the synergies, risks and return associated with business operation, the Company is engaged in following business segments.
Identified Segments Manufacturing and sale of :

i) Chemicals Sodium Cyanide, Ammonium Sulphate,Diphenyl Guanidine
ii) Jute Jute Goods
iii) Engineering Castings, Points & Crossings, Railway Rolling Stock, Steel Wires
(Rupees in ‘000)
d) Geographical segments considered for disclosure are For the year ended For the year ended
March 31, 2020 March 31, 2019
Sales
- within India 8 00 52 42 8 59 94 39
- Outside India - 3 51 52
Total : 8 00 52 42 8 63 45 91
(Rupees in ‘000)
As at As at
March 31, 2020 March 31, 2019
Trade Receivables
- within India 1 47 93 64 1 16 24 00
- Outside India 6 79 77 21 66 84
Total : 1 54 73 41 1 37 90 84
41 Gratuity & Other Post Employment Benefit Plans

This Company has a defined benefit gratuity plan which is unfunded. Every employee who has completed five years or more of service is
entitled to gratuity on terms not less favourable than the provisions of the Payment of Gratuity Act 1972.
This company also extends benefit of compensated absense to the employees, whereby they are eligible to carry forward their entilement of
earned leave for encashment. This is also unfunded.
The following tables summarizes the components of net benefit/expenses recognised in the Statement of Profit and Loss & the Balance Sheet
for the respective plans.
1. Movement In Obligation (Rupees in'000)
Gratuity Leave
Particulars
Present Value of Obligation- April 1,2018 66 20 00 3 96 92
Present Value of Obligation- March 31,2019 64 47 56 3 78 48
Interest Cost 4 90 62 2,856
Present Value of obligation- March 31,2020 63 09 33 4 33 29
2. Recognised in Statement of Profit and Loss (Rupees in'000)

Gratuity Leave
Particulars
For the year ended March 31,2019 7 70 12 86 59
For the year ended March 31,2020 7 63 24 1 39 70
77
3. Recognised in Other Comprehensive Income (Rupees in'000)
Gratuity Leave
Particulars
Remeasurement
Acturial loss/(gain) for the year ended March 31,2019 (43,968) 7,842
Acturial loss/(gain) for the year ended March 31,2020 (31,215) 7,696
4. The principal acturial assumptions used for estimating the Company's defined benefit obligations in respect of Gratuity & Leave
are set out as below:

Weighted average acturial assumptions
March 31,2020 March 31,2019
Attrition rate 1% to 8% 1% to 8%
Discount rate 7.00% 7.70%
Expected rate of increase in salary 6.00% 6.00%
Expected rate of return on plan assets - -
Mortality rate IALM(2012-14) Table
The assumptions of future salary increase takes into account the inflation,seniority,promotion and other relevant factors such as supply and
demand in employment market.
5.Sensitivity Analysis: (Rupees in'000)

Effect on Gratuity obligation
Particulars Change in
Assumption
March 31,2020 March 31,2019
(a) Gratuity
Discount rate > 1% (2 67 39) (3 83 86)
<1% 5 60 52 4 25 12
Salary Growth rate > 1% 5 83 86 4 50 94
<1% (2 94 29) (4 12 81)
Withdrawal Rate > 1% 1 45 94 35 96
<1% 1 03 40 (38 79)
Effect on Leave Encashment

(b) Leave Encashment
obligation
Discount rate > 1% (28 99) (23 47)
<1% 33 09 26 57
Salary Growth rate > 1% 34 36 27 60
<1% (30 50) (24 67)
Withdrawal Rate > 1% 2 14 2 86
<1% (2 38) (3 16)
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.In practice,this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defind benefit obligation to
significant actuarial assumptions the same method (projected unit credit method) has been applied when calculating the defined benefit
obligation recognised within the Balance sheet.
6.Statement of Employee Benefit Provision (Rupees in'000)

Particulars
March 31,2020 March 31,2019
Gratuity 63 09 33 64 47 56
Leave Encashment 4 33 29 3 78 48
Total 67 42 62 68 26 04
78
42 Related Party Disclosures
A. Names of related parties with whom transaction were being carried out during the year and their relationship
Key Managerial Personnel (KMPs): Shri R P Mody (Chairman)
Shri V A Mody (Director)
Shri A K D Singh (Executive Director-Technical)
Shri J K Singhania (Chief Financial Officer) ( upto 09.09.2019)
Shri P K Himatsingka (Chief Financial Officer) ( w.e.f 10.09.2019)
Shri R K Agarwal (Company Secretary)
Enterprise over which KMP/ Shareholders/ Close
family have significane influence: Anuradha Investments Ltd.
Associated General Trading Society Ltd.
Carbo Industrial Holdings Ltd.
Foster Engineering Industries Ltd.
Hindusthan Consultancy & Services Ltd.
Hindusthan Urban Infrastructure Ltd.
Olympic General Trading Ltd.
Paramount Enterprises Ltd.
Promain Ltd.
Hindusthan Speciality Chemicals Ltd.
Note: Vide order dated 25.11.2019 passed by the Hon'ble National Company Law Tribunal, Kolkata Bench, following Companies were
amalgamated with Hindusthan Consultancy & Services Ltd. w.e.f. 01.04.2018 and accordingly figures for the previous years have been
regrouped:
Adarsh Commercial Co.Ltd.

Gwalior Securities & Traders Ltd.
Jai Commercial Co. Ltd.
Magnum Traders Ltd.
Mahanagar Commercial Co. Ltd.
Rohini Traders & Exporters Ltd.
Senilis Trading Syndicate Ltd.
Simco Business Ltd.
Transactions with related parties are at arms length price. Outstanding balances as at year end are unsecured & settlement occurs generally
in cash. The company has not recorded any impairment in respect of outstandings with related parties during the year as well as in the
preceeding year.
79
Related Party Disclosures
B. Details of transactions between the Company and related parties and outstanding balances as at the year end are given below:
(Rupees in’000)
Enterprise over whichKMP/
Subsidiary
Nature of Transactions Year Shareholders/ relatives KMP Total
Companies
have significant influence
In relation to the statement of Profit and Loss Account(Exclusive of
taxes):
Sale of Investments
2018-19 - -
Remuneration/Commission
Shri A K D Singh 2019-20 41 36 41 36
2018-19 38 26 38 26
Director Sitting Fee
Shri R P Mody 2019-20 64 64
2018-19 59 59
Shri V A Mody 2019-20 50 50
2018-19 50 50
Salary
Shri J K Singhania 2019-20 22 06 22 06
2018-19 25 22 25 22
2018-19 - -
Shri R K Agarwal 2019-20 22 83 22 83
2018-19 23 79 23 79
Rent Paid (Exclusive of taxes)
2018-19 65 65
2018-19 96 54 96 54
Promain Ltd. 2019-20 18 18
2018-19 18 18
Magnum Traders Ltd 2019-20 1 20 1 20
2018-19 1 20 1 20
2018-19 1 00 71 1 00 71
2018-19 8 76 8 76
Interest Received
2018-19 1 65 39 1 65 39
2018-19 - -
Rent Received
Hindustan Urban Infrastructure Ltd. 2019-20 12 12
2018-19 12 12
Electricity Charges- Received
2018-19 3 68 3 68
Loan/ Advances / Secrutiy Deposits Given/ (Repayment Received)
2018-19 (93 70 12) (93 70 12)
Promain Ltd. 2019-20 (10 20) (10 20)
2018-19 (20 20) (20 20)
2018-19 - -
Magnum Traders Ltd 2019-20 (60) (60)
2018-19 (60) (60)
80

Subsidiary
Companies
Loan Given / Repayment Received
2018-19 1 08 00 1 08 00
Associated General Trading Society Ltd. 2019-20 22 00 22 00
2018-19 22 00 22 00
2018-19 1 22 25 1 22 25
2018-19 1 57 25 1 57 25
2018-19 - -
Promain Ltd. 2019-20 1 19 80 1 19 80
2018-19 1 19 80 1 19 80
2018-19 14 93 00 14 93 00
2018-19 - -
Interest Receivables
2018-19 4 85 07 4 85 07
Associated General Trading Society Ltd. 2019-20 7 15 28 7 15 28
2018-19 7 15 28 7 15 28
2018-19 4 34 24 4 34 24
2018-19 4 77 72 4 77 72
2018-19 35 68 64 35 68 64
2018-19 - -
Hindusthan Urban Infrastructure Ltd. 2019-20 2 01 2 01
2018-19 - -
Olympic General Trading Ltd. 2019-20 4 40 00 4 40 00
2018-19 4 40 00 4 40 00
Promain Ltd. 2019-20 11 10 13 11 10 13
2018-19 11 10 13 11 10 13
Advances/Security Deposits given
2018-19 23 82 23 82
Promain Ltd. 2019-20 2 01 55 2 01 55
2018-19 2 11 75 2 11 75
Investment in Preference Shares
Hindusthan Urban Infrastructure Ind. Ltd. 2019-20 - -
2018-19 95 18 97 95 18 97
Balance outstanding at the year end - Credit
Salary
Shri J K Singhania 2019-20 - -
2018-19 2 27 2 27
2018-19 - -
Shri R K Agarwal 2019-20 1 30 1 30
2018-19 2 10 2 10
81
Related Party Disclosures Contd… (Rupees in'000)
Subsidiary
Companies
Advance Received
Hindustan Consultancy & Services Ltd. 2019-20 1 86 1 86
2018-19 - -
Rent Payable
2018-19 4 4
2018-19 6 45 6 45
Consultancy Service & Maintenance Charges etc. Payable
2018-19 6 18 6 18
43 Expenditure & Earning in Foreign currency (Rupees in'000)
March 31, 2020 March 31, 2019
CIF VALUE OF IMPORTS
Raw Materials 10 12 40 36 14 18
Stores and Spare Parts 2 50 12 08
Finish Goods 32 30 32 2 61 89
Capital Goods 85 73 1 87 64
EXPENDTURE IN FOREIGN CURRENCY

Travelling 21 40 80 58
Interest 14 25 14 75
Commission - 21 00
Others 4 57 11 82
EARNING IN FOREIGN CURRENCY
Export (F.O.B Value) - 3 51 53
44 Unhedged Foreign Currency: (Rupees in'000)

USD EURO USD EURO
Payables
Buyer's Credit 3 44 - 6 86 -
Interest 3 - 5 -
Advance From Customers 1 97 - 1 97 -
Receivables
Trade Receivables 8 47 50 28 82 2 23
Cash/Bank Balances - 1 - 1
Insurance Claim - - 3 36 -
Advance to Suppliers - 2 6 2
82
45 FINANCIAL INSTRUMENTS DISCLOSURE
CATEGORIES OF FINANCIAL INSTRUMENTS (Rupees in '000)
Note No: As at March 31, As at March 31,
PARTICULARS 2020 2019
Financial Assets
Investments - Non-Current 4 95 19 10 1 21 44 79
Trade Receivables 7 1 54 73 41 1 37 90 84
Cash and Cash Equivalents 8 2 26 19 03 1 66 29 87
Loans 9 1 22 32 55 1 07 32 55
Other Financial Assets 10 1 11 44 85 1 10 04 32
Total Financial Assets Measured at Amortised Cost 7 09 88 94 6 43 02 37
Measured at Fair Value through Statement of Profit or Loss Note No: As at March 31, As at March 31,
2020 2019
Investments - Current 4 6 30 -
Total Financial Assets measured at Fair Value through Statement of Profit or 6 30 -
Loss
Financial Liabilities Note No: As at March 31, As at March 31,

2020 2019
Borrowings 13 1 43 10 97 1 16 05 67
Trade Payables 14 1 00 31 94 96 41 27
Other Financial liabilities 15 30 10 53 31 15 96
Total Financial Liabilities measured at Amortised Cost 2 73 53 44 2 43 62 90
46 (i) Class wise Fair Value of the Company's Financial Instruments: (Rupees in '000)
Particulars 2020 2019
Investments in Mutual Funds 6 30 -

Non Current Investments, other than Investments in Subsidiary and Associates 13 13
(ii) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received on sale of an asset or paid to transfer a
liability in an orderly transaction between participants at the measurement date. The following methods and assumptions were used to estimate
the fair values:
a) The fair value of cash and cash equivalents, trade receivables, trade payables, financial liabilities and borrowings approximate their carrying
amount largely due to the short term nature of these instruments. The board considers that the carrying amounts of the financial assets and
financial liabilities are recognised at cost/amortised costs in the financial statements approximates their fair values.
b) Fair value of debt approximates their carrying value subject to adjustments made for transaction cost if any
c) Investments in liquid and short-term mutual funds are measured using their net asset value at the reporting date multiplied by the quantity held.
d) During the year ended 31st March 2020 and 31st March 2019, there were no transfers between different levels of fair value measurement
47 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company's financial liabilities comprise borrowings, capital creditors and trade and other payables, The main purpose of these financial
liabilities is to finance the company's operations. The company's financial assets include trade and other receivables, cash and cash equivalents,
investments at cost/fair value and deposit.
The Company is exposed to market risk. The company's senior management oversees the management of the risks. The Board of Directors
reviews and agrees to policies for managing each of these risks, which are summarised below:
Market Risk
Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market
risk mainly comprises of risk, such as raw material price risk. Financial instruments affected by market risk include FVTPL investments, trade
payables, trade receivables, etc.
83
47 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES CONTD..
The table provides undiscounted cash flow towards non- derivative financial liability into relevant maturities based on the remaining period at
balance sheet date to contractual maturity date.
(Rupees in '000)
Payable within 1 Payable in more Total
Particulars
year than 1 year
Trade Payables 96 41 27 - 96 41 27
Trade Payables 1 00 31 94 - 1 00 31 94
48 CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes Issued Equity Capital, Securities Premiums and all other Equity
Reserves attributable to the equity holders of the company. The primary objective of the company's capital management is to maximise the
Share holder value. The Company manages its capital structure and makes adjustments in line with changes in economic conditions. To
maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue
new shares or sale assets to reduce debt. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus
net debt. The company includes within net debt, interest bearing long term loans and borrowings less cash and cash equivalents.
49 GEARING RATIO:
The Company has long term debt of Rs 47 84 as on 31.03.2020 (PY - Rs. 86 48). Accordingly the Company has 100% gearing ratio as at 31st
March 2020 & 31st March 2019.
(Rupees in'000)
Particulars 2020 2019
Net Long Term debt 47 84 86 48

Total Equity 10 60 00 22 10 36 60 50
Net Long Term debt to Value Ratio 100% 100%
50 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosure of contingent liabilities. Unncertainty about
these assumption and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
affected in future periods.
JUDGEMENTS
Fair value as Deemed Cost for Property Plant & Equipment.
Property, plant and equipment has been carried in accordance with previous GAAP carrying value as deemed cost at the date of transition ,
which has been considered as deemed cost. On transition, previous GAAP revaluation reserve has also been transfered to retained earnings.
Lease as Finance Lease

Lease as Finance Lease has been included in the Property, Plant and Equipment while considering the overall context of transfer of risk and
rewards incidental to ownership.
Depreciation/Amortisation of and Impairment Loss on Property Plant and Equipment/Intangible Assets:

Property, Plant and Equipment are depreciated and intangible assets are amortised on straight line basis over the estimated useful lives
(or Lease Term if shorter) in accordance with Schedule II of the Companies Act 2013, taking into account the estimated residual value,
wherever applicable. The company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation/
amortisation expense to be recorded during any reporting period. This reassessment may result in change in depreciation expense in future
periods.
84
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS CONTD..
The Company reviews its carrying value of its Tangible and Intangible assets whenever there is objective evidence that the assets are
impaired. The required level of impairment losses to be made is estimated by reference to the estimated value in use or recoverable amount.
Impairment loss on Trade Receivables:

The Company evaluated whether there is any objective evidence that trade receivable are impaired and determines the amount of impairment
loss as a result of the inability of the debtors to make required payments. The Company bases the estimates on the ageing of the trade
receivable balances, creditworthiness of the trade receivables and historical written off experience. If the financial conditions of the trade
receivables were to deteriorate, actual writeoffs would be higher than estimated.
Estimates and assumptions

The key assumptions concerning the future and other key sources of estimations uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are described above. The
company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances
and assumption about the future developments, however , may change due to market changes or circumstances arising that are beyond the
control of the company . Such changes are reflected in the assumption when they occur.
Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumption that may differ from actual developments in the future. These include the determination
of the discount rate, future salary increase and mortality rates. Due to the complexities involved in the valuation and it's long term nature , a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India , the
mangement considers the interest rate of government bonds in currencies consistent with the currencies of the post employment benefit
obligation.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval
in response to demographic changes.
Future salary increases are based on expected future inflation rates.

Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices
in active market, there fair value is measured using various valuation techniques. The inputs to these models are taken from observable
markets where possible , but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include
consideration of inputs such as liquidity risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
51 During the year, lockdown was declared across the country by the Central/ State Government(s) in response to COVID-19 pandemic on various
dates between 22nd March, 2020 and 25th March, 2020. Consequently, Company's manufacturing and sales operations at all the locations
were impacted due to such lockdown during the period from 22nd March, 2020 to 31st March, 2020. The operations have since commenced
in a phased manner since April/ May, 2020 conforming to the guidelines of regulatory authorities. While Company's sales and profitability for
the period were adversely impacted due to lockdown, it is not possible to ascertain the impact thereof. As per the current assessment of the
Company, no material impact is expected due to COVID-19 on the carrying values of assets and liabilities at the year ended 31st March, 2020.
The Company has taken into consideration external and internal information for developing various assumption for assessing the fair value of
assets and liabilities, the impact whereof may differ from the estimates taken as on the date of approval of financial statements. Any changes
due to the changes in situation and circumstances will be taken into consideration if necessary as and when it materialises.
52 Pursuant to the enactment of the Taxation Law (Amendment) Act, 2019 (‘Act’) which is effective from April 1,2019,domestic companies have
the option to pay income tax at 22% plus applicable surcharge and cess (‘new tax regime’) subject to certain conditions. The Company
has opted for the said amendment. Accordingly, the company has recognized current tax expense for the year ended 31st March 2020,
remeasured its deferred tax assets /Liabilities at the reduced rate prescribed in the said section.
53 Leases
As Lessee
The Company’s significant leasing arrangements are in respect of leases for premises (residential, manufacturing facilities, office, stores,
godown,etc.) These leasing arrangements which are cancellable ranging between 11 months and 99 years generally, or longer, and are
usually renewable by mutual consent on mutually agreeable terms. Effective 1st April 2019, the Company adopted Ind AS 116 “Leases” and
applied the standard to all lease contracts existing on 1st April 2019 using the modified retrospective method.
85
Following is carrying value of right of use assets recognized on date of transition and the movements thereof during the year.
(Rupees in’000)
Particulars Right of Use of Assets
As at March 31, 2020
Balance as on 01.04.2019 -
Reclassified from Property, Plant & equipment on account of adoption of Ind AS 116 1 85 69
(Refer Note No 2)
Total Right of use Assets on the date of Transition 1 85 69
Addition -
Disposals -
Depreciation for the year 277
Balance as on 31.03.2020 18,292
54 Figures of the previous Year have been regrouped / rearrenged whenever considered necessary.
55 These Financial statements have been approved by the Board of Directors of the Company on 18th November, 2020 for issue to the
shareholders for their adoption.
The accompanying Notes No.2 to 55 are an integral part of the Consolidated Financial Statements
Director
DIN : 00193192
CA S. Rastogi
Proprietor
86
NOTICE
NOTICE is hereby given that the Twenty Third Annual General Meeting of the Members of Hindusthan Engineering & Industries
Ltd. will be held on Thursday, the 31st December, 2020 at 02.00 P.M. through Video Conferencing (“VC”)/ Other Audio-Visual
Means (“OAVM”) for which purpose registered office at 27, Sir R.N. Mukherjee Road, Kolkata – 700 001 shall be deemed for
venue of meeting to transact the following business:
As Ordinary Business:
1. To receive, consider and adopt:
(a) the audited Financial Statements of the Company for the financial year ended 31st March, 2020 and the Reports of the
Board of Directors and Auditors thereon; and
(b) the audited consolidated Financial Statements of the Company for the financial year ended 31st March, 2020 and the
Report of Auditors thereon.
2. To appoint a Director in place of Shri Vikram Aditya Mody (DIN: 00193192), who retires by rotation at this Annual General
Meeting and being eligible, offers himself for re-appointment.
As Special Business:
3. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution.
To appoint Shri R. P. Mody as Advisor of the Company
"RESOLVED THAT pursuant to Section 188 of the Companies Act, 2013 read with Rule 15 of The Companies (Meeting
of Board and its Powers) Rules, 2014 and all other applicable provisions of the Companies Act, 2013, if any, and based
on the recommendations of the Audit Committee and Board of Directors of the Company, approval of the members of the
Company be and is hereby accorded for the appointment of Shri R.P. Mody, father of Shri V.A. Mody, Non – Executive
Director of the company, as an advisor of the Company on a monthly remuneration of Rs. 25 Lacs (Rupees Twenty Five
Lacs) with effect from 1st January, 2021 as per the terms and conditions mentioned in the Explanatory Statement of this
notice.”
“RESOLVED FURTHER THAT the Board of Directors be and is hereby authorized to do all such acts, deeds and things
and to execute all such documents, instruments and writings as may be required and to delegate all or any of its powers
herein conferred to Shri R.K.Agarwal, Company Secretary to give effect to the aforesaid resolution.”
4. To consider and if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution:
To re-appoint Shri Anil Kumar Damari Singh as Executive Director (Technical) of the Company
“RESOLVED THAT pursuant to the provisions of Sections 196, 197 and 203 read with Schedule V and other applicable
provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial
Personnel) Rule, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force), the
approval of the Shareholders of the Company is hereby accorded to the re-appointment of Shri Anil Kumar Damari Singh
(DIN:07160198), to hold the office as Whole-time Director designated as Executive Director (Technical) of the Company,
for a period of 3 (Three) years commencing from 16th April, 2021 to 15th April, 2024 on the remuneration and other terms
and conditions set out in the explanatory statement to this resolution with power to the Nomination & Remuneration
Committee and the Board of Directors to alter and vary the terms and conditions of the said appointment as felt appropriate
by them and that the consent of the Company be and is hereby accorded to Shri Anil Kumar Damari Singh to hold such
office or place of profit in the Company as a Whole-time Director designated as Executive Director (Technical)”.
5. To consider and if thought fit to pass with or without modification(s) the following resolution as Special Resolution:
Approval for Capital Reduction under the provisions of Companies Act, 2013
“RESOLVED THAT pursuant to the provisions of Section 66 of the Companies Act, 2013 and National Company Law
Tribunal (Procedure for reduction of share capital of Company) Rules, 2016 and other applicable provisions, if any, of
the Companies Act, 2013, and/or any modification(s) or re-enactment thereof, if any, and as provided under Article 9 of
the Articles of Association of the Company, and subject to the sanction of the Hon’ble National Company Law Tribunal,
Kolkata Bench (‘NCLT’), and any other statutory authorities, as the case may be, the consent be and is hereby accorded to
reduce the total existing Equity Share Capital of the Company of Rs. 15,00,07,820/- (Rupees fifteen crore seven thousand
eight hundred and twenty) divided into 1,50,00,782 (one crore fifty lakhs seven hundred and eighty two) Equity Shares
87
NOTICE (Contd.)
of Rs. 10/- (Indian Rupees Ten only) each fully paid up, by cancelling upto a maximum of 2,94,006 (Two lakh ninety
four thousand and six Only) Equity Shares of Rs. 10/- (Indian Rupees Ten only) amounting to Rs. 29,40,060/- without
consideration.
RESOLVED FURTHER THAT the reduced Equity shares of HEIL without any further application or deed, shall stand
cancelled without any payment and simultaneously the Issued, Subscribed and Paid-up share capital of the Company
shall stand reduced accordingly and the amount on cancellation of face value of Equity Shares shall be adjusted to the
Capital Reserve of the Company.
RESOLVED FURTHER THAT for the purpose of giving effect to the above resolution and for removal of any difficulties
or doubts, the Board of Directors of the Company (hereinafter referred to as ‘Board’, which term shall be deemed to
include any committee or person which the Board may constitute/ nominate to exercise its powers conferred under this
resolution) be and is hereby authorized to do all such acts, deeds, matters and things as it may, in its absolute discretion,
deem necessary, expedient, usual or proper including and not limited to filing of application / petition with the NCLT and
/ or any other regulatory authorities for obtaining its approval and/ or make such adjustments in the books of account as
are considered necessary to give effect to the above resolution or to carry out such modifications / directions as may be
ordered by the NCLT to implement the aforesaid resolution.
6. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary
Resolution:
“RESOLVED THAT pursuant to Section 148 and other applicable provisions, if any of the Companies Act 2013 read with
the Companies ( Audit and Auditors)Rules 2014(including any statutory modification(s) or re-enactment(s) thereof, for the
time being in force) the remuneration as approved by the Board of Directors and details below, to be paid ( apart from
taxes as applicable and reimbursement of actual travel and out-of-pocket expenses) to the Cost Auditors M/s S.K. Sahu &
Associates and Shri T.M. Rathi, to conduct the Cost Audit for the financial year ending 31st March 2021 be and is hereby
ratified.”
Name of the Name of the Manufacturing Units and their locations Name of the Cost Auditors Remuneration
Industry (in Rs.)
Engineering Bamunari Plant, Santragachi Plant &Tiljala Plant, M/s. S K Sahu & Associates 40,000
West Bengal
Jute Dalhousie Jute Company, Champdany, West Bengal M/s. S K Sahu & Associates 15,000
Chemical Hindusthan Chemicals Company, Olpad, District: Shri T. M Rathi 40,000
Surat, Gujarat
“FURTHER RESOLVED that the Board of Directors of the Company be and is hereby authorised to do all acts and take
all such steps as may be necessary, proper or expedient to give effect to this Resolution.”

Registered Office
‘Mody Building’
27, Sir R.N. Mukherjee Road By Order of the Board of Directors
Kolkata – 700 001
Date: the 18th Day of November, 2020
R.K.Agarwal
CIN: U93000WB1998PLC086303 Company Secretary
Phone: 033 2248 0166 Membership No.FCS-5047
Fax: 033 2248 1922
88
NOTICE (Contd.)
NOTES
1. The Explanatory Statements setting out the material facts pursuant to Section 102(1) of the Companies Act, 2013, relating
to the Special Business to be transacted at the Annual General Meeting is annexed hereto.
2. Considering the present Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide its circular dated May
5, 2020 read together with circulars dated April 8, 2020 and April 13, 2020 (collectively referred to as “MCA Circulars”)
permitted convening the Annual General Meeting (“AGM” / “Meeting”) through Video Conferencing (“VC”) or Other Audio
Visual Means (“OAVM”), without the physical presence of the members at a common venue. In accordance with the MCA
Circulars, provisions of the Companies Act, 2013 (‘the Act’), the AGM of the Company is being held through VC / OAVM.
The deemed venue for the AGM shall be the Registered Office of the Company.
3. Generally, a member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote on a poll
instead of himself and the proxy need not be a member of the Company. Since this AGM is being held through VC / OAVM
pursuant to the MCA Circulars, physical attendance of members has been dispensed with. Accordingly, the facility for
appointment of proxies by the members will not be available for the AGM and hence the Proxy Form and Attendance Slip
are not annexed hereto.
4. The Members can join the AGM in the VC/OAVM mode 15 minutes before the scheduled time of the commencement
of the Meeting by following the procedure mentioned in the Notice. The facility of participation at the AGM through VC/
OAVM will be made available for 1000 members on first come first served basis. This will not include large Shareholders
(Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel,
the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship
Committee, Auditors etc. who are allowed to attend the AGM without restriction on account of first come first served basis.
5. The Register of Members and Share Transfer Books of the Company will remain closed from 25th December, 2020 to
31th December, 2020 (both days inclusive) for the purpose of AGM.
6. The attendance of the Members attending the AGM through VC/OAVM will be counted for the purpose of reckoning the
quorum under Section 103 of the Companies Act, 2013.
7. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management
and Administration) Rules, 2014 (as amended), and the Circulars issued by the Ministry of Corporate Affairs dated April
08, 2020, April 13, 2020 and May 05, 2020 the Company is providing facility of remote e-voting to its Members in respect
of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement with National
Securities Depository Limited (NSDL) for facilitating voting through electronic means, as the authorized agency. The
facility of casting votes by a member using remote e-voting system as well as venue voting on the date of the AGM will be
provided by NSDL.
8. In compliance with the MCA Circulars the Annual Report for the financial year 2019-2020, Notice of the 23rd AGM and
instruction for remote e-voting are being sent by electronic mode to all members whose email IDs are registered with the
Company/Depository Participants(s) for communication purposes. In view of the current Covid – 19 pandemic physical
copies of Annual Report and Notice for this AGM will not be sent in physical. The same is also available on the Company’s
website www.heilindia.com.
9. Members intending to require information about accounts to be explained at the meeting are requested to write to the
Company at least 10 (ten) days in advance of the Annual General Meeting.
10. The name and address of the Company’s Registrar and Share Transfer Agent is C.B. Management Services (P)
Ltd., P-22, Bondel Road, Kolkata 700019. Hence, any correspondence relating to shares and debentures may be
made with them only.
11. Members holding shares in physical form, who have multiple accounts in identical names or joint accounts in the same
order, are requested to send the Share Certificates to the Company’s Share Transfer Agent for consolidation of such
shareholdings in one account to facilitate better service.
12. To support the ‘Green Initiative’, the Members who have not registered their e-mail addresses, are requested to register
the same with the Registrar in case of shares held in certificate form and with the Depositories in case of shares held in
demat form. Rule 18(3)(i) of the Companies (Management and Administration) Rules, 2014 requires a Company to provide
advance opportunity at least once in a financial year, to the Member to register his email address and any changes therein.
89
NOTICE (Contd.)
In compliance with the same, we request the Members who do not have their email id registered with the Company to get
the same registered with the Company. Members are also requested to intimate to the Company the changes, if any in
their email address.
13. Members are requested to avail the dematerialization facility of Company’s shares. Demat ISIN No. allotted by
National Securities Depository Ltd. and Central Depository Services (India) Ltd. is INE 665C01026. The address of
the Company’s interface Registrar is C.B. Management Services (P) Ltd., P-22, Bondel Road, Kolkata- 700019.
14. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN)
by every participant in securities market. Members holding shares in dematerialised form are, therefore, requested to
submit the PAN to their Depository Participants with whom they are maintaining their demat accounts. Members holding
shares in physical form shall submit their PAN details to the Company at its Registered Office or to the Registrar and Share
Transfer Agents.
15. Corporate members intending to authorise their representatives are requested to send through e-mail a certified copy of
the relevant Board Resolution together with the specimen signature(s) of the authorised representative(s) to attend and
vote on their behalf at the meeting.
16. In case of joint holders attending the meeting, only such joint holder who is higher in the order of names as per the Register
of Members will be entitled to vote. The voting rights of the member shall be in proportion to their share of the paid-up
equity share capital of the Company as on the cut-off date.
17. Members are also requested to intimate changes, if any, pertaining to their name, postal address, email address, telephone/
mobile numbers, mandates, nominations, power of attorney, bank details such as, name of the bank and branch details,
bank account number, PAN, MICR code, IFSC code, etc., to their DPs in case the shares are held by them in electronic
form and to the Company's Registrars and Transfer Agents, in case the shares are held by them in physical form.
18. Non-resident Indian members are requested to inform CB Management Services (P) Ltd., immediately of any change in
their residential status on return to India for permanent settlement.
19. During the AGM, the Register of Directors and Key Managerial Personnel and their shareholding maintained under Section
170 of the Act and the Register of Contracts or arrangements in which Directors are interested maintained under Section
189 of the Act shall be made available for inspection upon login at NSDL e-Voting system at https://www.evoting.nsdl.com
20. Since the AGM will be held through VC/OAVM, the route map of the venue of the meeting is not annexed hereto
21. Voting through electronic means
I. In compliance with provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies
(Management and Administration) Amended Rules, 2015,the Company is pleased to provide its members facility
to exercise their right to vote on the resolution proposed to be considered at the AGM by electronic means and the
business may be transacted through e -Voting Services. The facility of casting the votes by the members using an
electronic voting system from a place other than the venue of AGM ("remote e-voting") will be provided by National
Securities Depository Limited (NSDL).
II. The members who have cast their vote by remote e-voting prior to the AGM may also attend the AGM but shall not be
entitled to cast their vote again.
III. The remote e-voting period will commence on 28th December, 2020 (9:00 A.M.) and end on 30th December, 2020
(5:00 P.M.). During this period, shareholders of the Company, holding shares either in physical form or in dematerialized
form, as on the cut-off date, i.e. 24th December, 2020 may cast their vote by remote e-voting. The remote e-voting
module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the member, the
member shall not be allowed to change it subsequently.
IV. THE INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING ARE AS UNDER:-
The remote e-voting period begins on 28th December, 2020 at 09:00 A.M. and ends on 30th December, 2020 at
05:00 P.M. The remote e-voting module shall be disabled by NSDL for voting thereafter.
90
NOTICE (Contd.)
How do I vote electronically using NSDL e-Voting system?
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:
Step 1: Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
Step 2: Cast your vote electronically on NSDL e-Voting system.
Details on Step 1 is mentioned below:
How to Log-in to NSDL e-Voting website?
1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.
com/ either on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under
‘Shareholders’ section.
3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown
on the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/
with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on
e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. Your User ID details are given below :
Manner of holding shares i.e. Demat (NSDL or CDSL) Your User ID is:
or Physical
a) For Members who hold shares in demat account with 8 Character DP ID followed by 8 Digit Client ID
NSDL.
For example if your DP ID is IN300*** and Client ID is
12****** then your user ID is IN300***12******.
b) For Members who hold shares in demat account with 16 Digit Beneficiary ID
CDSL.
For example if your Beneficiary ID is 12**************
then your user ID is 12**************
c) For Members holding shares in Physical Form. EVEN Number followed by Folio Number registered
with the company
For example if folio number is 001*** and EVEN is
101456 then user ID is 101456001***
5. Your password details are given below:
a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was
communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the
system will force you to change your password.
c) How to retrieve your ‘initial password’?
(i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated
to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open
the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for
NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form.
The .pdf file contains your ‘User ID’ and your ‘initial password’.
(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders
whose email ids are not registered
91
NOTICE (Contd.)
6. If you are unable to retrieve or have not received the “ Initial password” or have forgotten your password:
a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat account with NSDL or
CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.
evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a request at evoting@
nsdl.co.in mentioning your demat account number/folio number, your PAN, your name and your registered
address.
d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting
system of NSDL.
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.
8. Now, you will have to click on “Login” button.
9. After you click on the “Login” button, Home page of e-Voting will open.
Details on Step 2 are given below:
How to cast your vote electronically on NSDL e-Voting system?

1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on
Active Voting Cycles.
2. After click on Active Voting Cycles, you will be able to see all the companies “EVEN” in which you are holding shares
and whose voting cycle is in active status.
3. Select “EVEN” of company for which you wish to cast your vote.
4. Now you are ready for e-Voting as the Voting page opens.
5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which
you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.
6. Upon confirmation, the message “Vote cast successfully” will be displayed.
7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.
V. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Members and remote e-voting user
manual for Members available at the downloads section of www.evoting.nsdl.com or contact NSDL at the following
toll free number 1800-222-990.
VI. You can also update your mobile number and e-mail id in the user profile details of the folio which may be used for
sending future communication(s).
VII. The voting rights of the members shall be in proportion to their shares of the paid-up equity share capital of the
Company as on the cut-off date of 24th December,2020.
VIII. Any person who acquires shares of the Company and become member of the Company after dispatch of the notice
and holding shares as of the cut-off date i.e. 24th December, 2020 may obtain the login ID and password by sending
a request at evoting@nsdl.co.in or to RTA at rta@cbmsl.com.
However, if you are already registered with NSDL for remote e-voting then you can use your existing user ID and
password for casting your vote. If you forgot your password, you can reset your password by using "Forgot User
Details/Password?" or “Physical User reset Password?” option available on www.evoting.nsdl.com or contact NSDL
at the following toll free no: 1800-222-990
IX. A member may participate in the AGM even after exercising his right to vote through remote e-voting but shall not be
allowed to vote again at the AGM.
92
NOTICE (Contd.)
X. A person, whose name is recorded in the register of members or in the register of beneficial owners maintained by
the depositories as on the cut-off date only shall be entitled to avail the facility of remote e-voting as well as voting at
AGM through ballot paper.
XI. The Company has appointed Shri Raj Kumar Banthia, (Membership No. ACS 17190 & CP No. 18428) Partner,
M/s MKB & Associates, Company Secretaries, Kolkata as the Scrutinizer to scrutinize the e-voting process and
voting process at AGM in a fair and transparent manner.
XII. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/
JPG Format) of the relevant Board Resolution/Authority letter etc. with attested specimen signature of the duly
authorised signatory(ies) who are authorised to vote, to the Scrutinizer by e-mail (scrutinizermkb@gmail.com) to
with a copy marked to evoting@nsdl.co.in.
XIII. It is strongly recommended not to share your password with any other person and take utmost care to keep your
password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in
the correct password. In such an event, you will need to go through the “Forgot User Details/Password?” option
available on www.evoting.nsdl.com to reset the password.
XIV. Your login id and password can be used by you exclusively for e-voting on the resolution placed by the Companies
in which you are the shareholder.
XV. The Scrutinizer shall after the conclusion of the voting at the Annual General Meeting, will first count the votes cast
at the meeting and there after unblock the votes cast through remote e-voting in presence of at least two witnesses
not in the employment of the Company and shall make, not later than three days of the conclusion of the AGM,
a consolidated scrutinizer’s report of the total votes cast in favour or against, if any, to the Chairman or a person
authorised by him in writing, who shall counter sign the same and declare the result of the voting forthwith.
XVI. The results declared along with the report of the Scrutinizer shall be placed on the website of the Company
www.heilindia.com and on the website of NSDL immediately after the declaration of the result by the Chairman or a
person authorised by him in writing.
XVII. Subject to receipt of requisite number of votes, the Resolutions shall be deemed to be passed on the date of the
meeting i.e., 31st December, 2020.
ANNEXURE TO THE NOTICE

Explanatory Statement pursuant to Section 102 (1) of the Companies Act, 2013.
Resolution at Item No. 3
Shri Rajendra Prasad Mody, 83 years of age has been the former Chairman of the Company. He has been instrumental in the
growth of the Hindusthan Group and has worked untiringly for over 55 years.
The Hindusthan Group has impeccably been working to create a better future by enhancing the quality of people’s lives both
in India and abroad, guided by the visionary leadership of Shri Rajendra Prasad Mody, the Founder Chairman of the Group.
The Group today holds the privilege of being a market leader in the following six strategic high-growth business verticals-
• Engineering
• Chemicals
• Power, Renewable Energy and Performance Polymers
• Agriculture
• Renewable Energy
• Education
Sturdy foundations of the past are a corroboration of present buoyant pace of advancement. Today, the Group is a consortium
of diverse companies, made up of a vast manpower and professional approaches that are not only outstanding, but also
fervently dedicated to service. Under his dynamic leadership the Group has grown to great heights.
93
NOTICE (Contd.)
Shri Rajendra Prasad Mody has also held important positions such as President of Indian Chamber of Commerce in the year
1976 and has also served as a Member of Parliament from 1992 to 1998.
His quest for women education and empowerment let him to establish the Mody University in the year 2004. He is a true
visionary who took an idea ahead of his time and founded the Mody University exclusively for women. His philanthropic
attributes, operated in terms of social and psychological promotion of the women community, led him to impart his proposed
vision through practical infrastructure. The Mody University instils the thought that is fully capable of orienting knowledge
and information in a scientific manner in the minds of the common mass. This acts as a boon towards the development of a
21st century perspective of the knowledge acquisition process implemented within the university.
In view of the exemplary accomplishments of Shri Rajendra Prasad Mody, in building the Group, the Board desires to have
his association and guidance as an advisor to the Company post his resignation as a director, and therefore, recommends the
ordinary resolution for prior approval of the members.
Shri Rajendra Prasad Mody is the father of Shri V.A. Mody, Non-Executive Director of the Company. Therefore, he falls under
the definition of a “related party” as per Section 2(76) of the Companies Act, 2013 and hence his appointment amounts to
‘Office or Place of profit’ and requires prior approval of the members of the Company under section 188 of the Companies
Act, 2013. The Audit Committee at its meeting held on 17th March 2020 and the Board of Directors at their meeting held on
17th March 2020 and 18th November 2020 have also consented to the appointment of Mr. Mody as an Advisor to the Company.
The terms of appointment of Shri R. P. Mody are as follows:-
1) Date of Appointment 1st January 2021

2) Period of Appointment 10 (Ten) Years
3) Salary Details The appointment is made at a salary of Rs. 25 (Twenty Five) Lacs per month.
4) Duties & Responsibilities The appointee shall act as an Advisor to the company for its overall growth & strategy.
Except Shri V.A. Mody, none of the Directors / Key Managerial Personnel of the company/ their relatives are concerned or
interested in this resolution.
The members of the Company, in the Annual General Meeting held on 29th September, 2018, had appointed Shri Anil Kumar
Damari Singh as Whole time Director (designated as Executive Director-Technical) of the Company for a period of 3 (Three)
years with effect from 16th April, 2018 to 15th April, 2021. Having regard to the qualifications, experience and association of Shri
Anil Kumar Damari Singh with the Company and considering the overall performance of the Company and the growth during
his tenure, the Nomination and Remuneration Committee and the Board of Directors at its meeting held on 18th November,
2020 has re-appointed Shri Anil Kumar Damari Singh as the Whole time Director (designated as Executive Director-Technical)
of the Company, not liable to retire by rotation, for a further period of 3 (Three) years effective from 16th April, 2021 till
15th April, 2024, subject to approval of the members at the ensuing Annual General Meeting of the Company. The Board
has also approved the remuneration, perquisites and other benefits payable to Shri Anil Kumar Damari Singh as the Whole
time Director (designated as Executive Director-Technical) based on the approval accorded by a resolution passed by the
Nomination and Remuneration Committee. The broad particulars of remuneration and perquisites payable to and other
principal terms and conditions of his re-appointment as contained in the letter of appointment issued by the Company to Shri
Anil Kumar Damari Singh, are as under:
I. Tenure of Re-appointment: 3(Three) years with effect from 16th April, 2021 to 15th April, 2024.
II Remuneration:
a) Salary Rs.1,52,000 per month from 16.4.2021 or as may be increased by the Nomination and Remuneration Committee
and the Board of Directors from time to time.
b) He will be paid a sum of Rs.900 per month towards Books and Periodicals. The amount is to be spent by him for
purchase of books and periodicals for academic references and other professional pursuits.
c) Colony Allowance @Rs.2,250 per month.
d) He will be paid a sum of Rs.15,200 per month towards Gas, Electricity & Water Charges.
94
NOTICE (Contd.)
e) He will be paid a sum of Rs.32,000 per month towards Vehicle Upkeep Allowance for office use, and if used for
personal purpose, then the same will be billed by the Company. In case he uses his own car exclusively for attending
Company’s work instead of Company’s car, the Company will bear its running and maintenance expenses at actual.
f) Personal Allowance @Rs.63,900 per month.
g) Sweeper Allowance @Rs.23,000 per month.
h) Watchman Allowance @Rs.23,000 per month.
i) Washing Allowance @Rs.6,000 per month.
j) Free use of 3 BHK house in HCC Housing Colony.
k) Leave Travel Allowance: Reimbursement of actual fare but not hotel expenses etc., incurred by him for himself and his
family, once in two years subject to a maximum of two month’s salary as per the rules of the Company.
l) Medical Expenses: Reimbursement of actual expenses incurred for himself and his family subject to a ceiling of one
month’s salary in a year or three month’s salary over a period of three years.
m) Company’s contribution towards Provident Fund @ 12% of Basic Salary as per rules of the Company.
n) Leave: One month’s leave with remuneration for every eleven months of service with right to accumulation upto 84
days.
o) Free Telephone facility at residence except personal long distance calls.
p) All taxes, deductions etc. as per Law & Rules and as are applicable from time to time will be deducted at source.
The above remuneration shall also be paid as minimum remuneration in case of inadequacy of profit.
III. Other Conditions:
a) As long as Shri Anil Kumar Damari Singh is the Executive Director (Technical) of the Company, no sitting fees will
be paid to him for attending the Meetings of the Board of Directors or Committee thereof, nor will he be entitled
to supplement his earning under the Agreements with any buying or selling commission. He will not also become
interested or otherwise concerned directly or through his wife and/or minor children in any selling agency of the
Company without the prior approval of the Central Government.
b) He will hold the above office for a period of 3 (Three) years from 16th April, 2021 to 15th April, 2024 unless determined
earlier by voluntary resignation or any other reason.
c) His services may be terminated by one month’s notice on either side.
d) If at any time he ceases to be a Director of the Company for any cause whatsoever, he will cease to be Executive
Director (Technical).
e) If at any time he ceases to be in the employment of the Company for any cause whatsoever, he will cease to be a
Director of the Company.
f) He will observe secrecy about all affairs of the Company as may come to his knowledge while discharging his duties.
g) The Executive Director (Technical) shall be considered as a Key Managerial Personnel pursuant to the provision of
Section 203 of the Companies Act, 2013 read with The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014.
Keeping in view the professional qualifications & vide experience of Shri Anil Kumar Damari Singh, the Nomination and
Remuneration Committee and Board of Directors accorded their approvals to the above and in the interest of the Company
have recommended the aforesaid Resolution as set out in this Notice for approval of members.
The information/details of Shri Anil Kumar Damari Singh as required in the Secretarial Standard -2 on General Meetings are
provided in the Annexure to the Notice.
Except Shri Anil Kumar Damari Singh, none of the Directors or Key Managerial Personnel (KMP) of the Company or their
relatives is concerned or interested, financially or otherwise, in the resolution.
95
NOTICE (Contd.)
The Board of Directors recommends the resolution for approval of Shareholders by way of Special Resolution.
Information as required as per the provisions of Section-II of Part- II of Schedule-V to the Companies Act, 2013
I. General Information
1. Nature of Industry Manufacture of Wagon( Railway Rolling Stock), Jute
Sacking Bags, Chemicals
2. Year of Commencement of Commercial Production 1998
3. In case of New Companies expected date of commencement
of activities as per project approved by financial institutions N.A
appearing in the prospectus.
Financial Parameters 2019-2020 2018-19 2017-18
(Rs. In (Rs. In (Rs. In

Lakhs) Lakhs) Lakhs)
Financial Performance based on given indicator
4. Audited Audited Audited
Sales 81018.52 87934.50 69091.14
Net Profit 2255.60 3970.96 2489.71
5. Foreign Investments or collaboration, if any N.A
II. Information about the appointee
1. Background Details Shri Anil Kumar Damari Singh (68 Years) is a M.Tech
in Chemical Engineering from Institute of Technology,
B.H.U University with a vast experience of 44 Years in all
functions of business including marketing, development,
plant operations and project management.
2. Past Remuneration Rs. 39.88 Lakhs per annum.
3. Recognition or awards None
4. Job Profile and his suitability Shri Anil Kumar Damari Singh will be responsible for
overall business management of the Company under
the supervision of Board of Directors. He has a vast
experience of 44 Years in all functions of business
including marketing, development, plant operations and
project management.
5. Remuneration Proposed Rs. 43.41 Lakhs per annum (as per details given in
Explanatory Statement of Resolution at Item no. 4)
6. Comparative Remuneration profile with respect to The Remuneration being paid to the Whole-time Director
industries, size of the Company, Profile of the position and by the Company is in line with the Remuneration being
person( in case of expatriates the relevant details would be paid by the Companies of comparable size
w.r.t the country of his origin
7. Pecuniary relationship directly or indirectly with the Shri Anil Kumar Damari Singh did not hold any equity
Company or relationship with Managerial Person if any share in the Company. Apart from receiving remuneration
as stated above Shri Anil Kumar Damari Singh does not
have any other pecuniary relationship with the Company
or with the managerial personnel of the Company.
III. Other Information
1. Reasons of loss or inadequate profits
2. Steps taken or proposed to be taken for improvement
The Company has adequate profits, but for abundant
precaution the company is taking approval under
3. Expected increase in productivity and profits in Schedule V.
measureable terms
IV. Disclosures
The information and disclosures of remuneration package of Shri Anil Kumar Damari Singh, Executive Director (Technical)
have been mentioned in Explanatory Statement of Resolution No. 4 as above.
96
NOTICE (Contd.)
Details of Directors seeking Appointment / Re-appointment in the ensuing Annual General Meeting scheduled to be
held on 31st December, 2020.
Particulars Shri Vikram Aditya Mody Shri Anil Kumar Damari Singh
DIN 00193192 07160198
Date of Birth 17.11.1961 17.09.1952
Nationality Indian Indian
Age 59 Years 68 Years
Date of First Appointment 06.10.2017 16.04.2015
Qualification Graduate in Commerce M.Tech in Chemical Engineering
Experience and Expertise in specific Wide business experience across the Wide experience in all functions of plant
functional area variety of industries. operations and project management.
Number of Shares held in the Nil Nil
Company
Relationship with other Directors, Shri Vikram Aditya Mody is the son None
Manager and other Key Managerial of Shri Rajendra Prasad Mody and
Personnel hence they are related to each other.
Number of Board Meeting attended 5 (Five) 5 (Five)
during the Financial Year 2019-2020
List of outside Directorships held Nil Nil
Chairman / Member of the Committee Nil Nil
of the Board of Directors of the Public
Company
Terms and Condition of appointment / Liable to Retire by Rotation Not Liable to Retire by Rotation
reappointment
Remuneration last drawn by such Rs. 50,000 Rs. 39.88 Lakhs per annum.
person
Remuneration sought to be paid Shall be paid Sitting fees for the Rs. 43.41 Lakhs per annum
meeting of Board and Committees.
REDUCTION OF EQUITY SHARE CAPITALOF THE COMPANY:
In the year 1994, Hindusthan Development Corporation Limited (HDC) had issued 1,58,53,659 units comprising 3,17,07,317
Global Depository Receipts (GDR) representing 3,17,07,317 Shares with 1,58,53,659 warrants. Pursuant to a scheme of
arrangement between Hindusthan Development Corporation Ltd. (HDC) and Hindusthan Engineering & Industries Ltd. (HEIL)
sanctioned by the Hon’ble Calcutta High Court in the year 2000, the shareholders of HDC were allotted new shares & warrants
of HDC & HEIL.The name of HDC was subsequently changed to Malanpur Steel Ltd. The said Malanpur Steels was referred to
Hon’ble BIFR under sick Industrial companies (Special Provision) Act, 1985 .Thereafter, in terms of order dated 4th September,
2012 issued by Hon’ble BIFR, Malanpur Steel Ltd. (MSL) merged with Hindusthan Engineering & Industries Ltd.
Deutsche Bank Trust Company Americas being the “Depository’’ is holding 2,94,006 equity shares of Rs. 10/- each of the
Applicant Company corresponding to the uncertified positions of GDR from the year 2001 corporate action.
The said 2,94,006 shares are liable for cancellation as per the terms and conditions No.9 (B) of the Master GDR and DBTCA
has also sought cancellation of the said shares through their letter dated 23-05-2019 addressed to the company. For your
reference, terms and conditions No.9 (B) of the Master GDR is mentioned below:-
“9 (B) Delivery of any securities or other property or rights other than cash shall be made as soon as practicable to the entitled
Holder, subject to any laws or regulations applicable thereto. If any distribution made by the Company with respect to the
Deposited Property and received by the Depository shall remain unclaimed at the end of 12 years from the first date upon
which such distribution is made available to Holders in accordance with the Deposit Agreement, all rights of the Holders to
97
NOTICE (Contd.)
such distribution or the proceeds of the sale thereof shall be extinguished and the Depository shall (except for any distribution
upon the liquidation of the Company when the Depository shall retain the same), at the request of the Company return the
same to the Company for its own use and benefit”.
The corporate action took place back in the year 2001 and from the date of the first distribution thereunder, 12 years have
already passed and all the rights of the Holders to such distribution or the proceeds of the sale thereof have, consequently,
been extinguished. Hence as per the terms and conditions No.9 (B) of the Master GDR, the said unclaimed shares are liable
to be extinguished. Accordingly, it is proposed to cancel the said shares.
The Applicant Company shall make requisite application before Hon’ble National Company Law Tribunal (NCLT), Kolkata for
Reduction of Share Capital of the Company to the extent of 2,94,006 equity shares of Rs. 10/- each. Consequent upon such
reduction, the Paid up share capital of the company shall decreased from existing Rs. 15,00,07,820/- to Rs.14,70,67,760/-
comprising of 1,47,06,776 shares of Rs.10/- each.
The Board of Directors (“Board”) of the Company at their meeting held on 18th November 2020 have considered and approved
the reduction of paid up Equity Share Capital without any consideration in accordance with Section 66 of the Companies
Act, 2013 and National Company Law Tribunal (Procedure for reduction of share capital of Company) Rules, 2016 and other
applicable provisions, if any, of the Companies Act, 2013, and/or any modification(s) or re-enactment thereof, if any.
The proposed reduction of Equity Share Capital requires approval of the members through a special resolution, the National
Company Law Tribunal and approvals of other regulatory authorities, as may be required, to give effect to the reduction.
The proposed reduction is not likely to cause any prejudice to the creditors of the Company. The creditors of the Company,
if any, are not adversely affected by the proposed reduction of paid up capital as there is no reduction in the amount payable
to any of the creditors, no compromise or arrangement is contemplated and the company will have assets in excess of all its
liabilities. Further, the proposed adjustment would not in any way adversely affect the ordinary operations of the Company or
the ability of the Company to honour its commitments or to pay its debts in the ordinary course of business.
The Directors recommend the resolution for approval by the members.
None of the Directors, key managerial personnel or their relatives are in any way concerned or interested in this resolution.
In accordance with the provision of Section 148 of the Companies Act, 2013 read with and the Companies (Audit and Auditors)
Rules, 2014 the remuneration of the Cost Auditors as recommended by the Audit Committee and approved by the Board of
Directors shall be ratified by the members. Accordingly ratification by the member is sought to the remuneration payable to the
Cost Auditors for the financial year ending 31st March, 2021 by passing an Ordinary Resolution.
None of the Directors or Key Managerial Personnel of the Company or their relatives is, in any way concerned or interested,
financial or otherwise, in the resolution.
The Board of Directors recommends the resolution for approval of Shareholders.
Registered Office
‘Mody Building’
27, Sir R.N. Mukherjee Road By Order of the Board of Directors
Kolkata – 700 001
Date: the 18th Day of November, 2020
R.K.Agarwal
CIN: U93000WB1998PLC086303 Company Secretary
Phone: 033 2248 0166 Membership No.FCS-5047
Fax: 033 2248 1922
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Annual Report 2019-20

Hindusthan Engineering & Industries Limited

Independent Auditors’ Report 16

Standalone Balance Sheet 22

Standalone Statement of Profit And Loss 23

Standalone Cash Flow Statement 24

Notes to the Standalone Financial Statements 26

Independent Auditors’ Report on the Consolidated Financial Statement 52

Consolidated Balance Sheet 56

Consolidated Statement of Profit & Loss 57

Consolidated Cash Flow Statement 58

Notes to the Consolidated Financial Statements 60

Sl. No. Name of the Director Category No of Board Meeting attended

Sl. No Name of the Director Position Category No. of Meeting attended

be held in the year 2023.

For and on behalf of the Board of Directors

A.K.D. Singh V.A. Mody

For and on behalf of the Board of Directors

A.K.D. Singh Biswajit Choudhuri

For MKB & Associates

For and on behalf of the Board of Directors

For S. RASTOGI & ASSOCIATES,

Annexure- A to the Auditors’ Report

For S. RASTOGI & ASSOCIATES,

Total Equity & Liabilities 14 42 02 84 14 12 09 88

Significant Accounting Policies 1

Profit/(Loss) before tax 19 03 40 65 03 88

Profit/(Loss) after tax 22 55 60 39 70 96

Other Comprehensive Income

Total Comprehensive Income/(Loss) for the year 24 31 59 42 05 98

Earnings per Equity Share (in Rupees) 28

Significant Accounting Policies 1

B. CASH FLOW FROM INVESTING ACTIVITIES

C. CASH FLOW FROM FINANCING ACTIVITIES

Net increase in Cash and Cash Equivalents 59 88 95 15 10 57

B. OTHER EQUITY (Rupees in '000)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

March 31, 2020 13 61 28 - 1 85 69 25 69 58 4 25 78 63 18 84 1 11 09 12 36 1 36 98 5 09 31 4 74 83 76 29 17 13 90 62 14 19 79

Note : 4 INVESTMENTS (Rupees in '000)

Note : 5 OTHER ASSETS (Rupees in '000)

Note : 7 TRADE RECEIVABLES (Rupees in '000)

Note : 8 CASH AND CASH EQUIVALENTS (Rupees in '000)

Note : 9 LOANS (Rupees in '000)

Note : 10 OTHER FINANCIAL ASSETS (Rupees in '000)

As at March 31, 2020 As at March 31, 2019

Note : 12 OTHER EQUITY (Rupees in '000)

Note : 14 TRADE PAYABLES (Rupees in '000)

Note : 16 DEFERRED TAX LIABILITIES (Rupees in '000)

Note : 17 PROVISIONS (Rupees in '000)

Note : 18 OTHER LIABILITIES (Rupees in '000)

Note : 20 OTHER INCOME (Rupees in '000)

Note : 21 COST OF MATERIALS CONSUMED (Rupees in '000)

Note 22 PURCHASE OF STOCK-IN-TRADE (Rupees in '000)

Note : 24 EMPLOYEE BENEFIT EXPENSES (Rupees in '000)

Note : 25 FINANCE COST (Rupees in '000)

Note : 26 DEPRECIATION & AMORTISATION EXPENSES (Rupees in '000)

Note : 27 OTHER EXPENSES (Rupees in '000)

Note : 28 EARNING PER SHARE (Rupees in '000)

31 Capital Commitments not provided for (Net of advances) 8 50 79 7 52 77