Comapny Project

8/18/2019 Comapny Project

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5s a responsi-le graphite electrode manufacturer, we continueto in&est in technology, de&elopment of new products and in

our human resources.

Board members

Shri L N Jhunjhunwala Chairman-Emeritus

Shri Ravi Jhunjhunwala Chairman & Managing Director

Shri Shekhar Agarwal Vice-Chairman

Shri Kamal Gupta Director

Shri D N Davar Director

Shri P urari Director Shri Lalit ohan Lohani Nominee Director-LIC

Shri Riju Jhunjhunwala Director

Shri !m Parkash "ahl Director

Products

1. Graphite #le$trode Division

$he main -usiness of HEG is graphite which accounts for () of the re&enue. =et up in/0::, in technical and financial colla-oration with =ociete >es Electrodes Et ?efractaires

=a&oie "=E?=#, a su-sidiary of !echiney of 6rance, HEG is now the largest integratedgraphite plant in the world. =pread o&er an area of a-out /:( acres, HEG "graphite di&ision#has facilities for production of Graphite Electrodes and Graphite =pecialities. Its plant islocated at ;andideep near Bhopal ";!#.

$he plant has a annual capacity to ma8e (,((( ;$ of H! grade electrodes. It has threecapti&e power generation facilities which can together produce around :: ;< which fulfilsalmost the entire reuirement of the graphite plant.

*. p(wer


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7ne of the maor -ottlenec8s plaguing the Indian industry has -een the shortage

of power. 5t HEG Limited, we reali@ed this as early as /00+ and o&ercame this pro-lem -y

setting up the group's first hydropower proect of /A.+ ;< rated capacity in $awanagar,

district H7=H5NG5B5> ";.!.# which was commissioned in /00:. $he power generated at

this unit is wheeled to the graphite plant at ;andideep. $his not only ramped up the

efficiency of the graphite plant -ut also opened up a window of opportunity for us to enter thearea of power generation.

=u-seuently, when the Graphite Electrode capacity was increased from ,(((

tonnesCannum to (,((( tonnesCannum,


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*sage

C4 is used in 7

ir-conditioner %ilters.ir puri%ying %ilters.

Clean rooms.

ll other types o% pollution control %ilters.

nti pollution mas$s - %or personal protection against gaseous !apours 8 %umes and "ad odours.

9e%rigerator deodouriser - to arrest odours in re%rigerators.

Cigarette %ilters - to trap harm%ul chemicals present in cigarette smo$e.

"& )ar+on "lo$ks

:E0 also ma$es 4ine 0rain Car"on *loc$s %or !arious applications on special orders. hese "loc$s

are used "y the customers to ma$e !alue added products li$e :eat E;changers etc.

)& Graphite Spe$ialities

:E0 has a small graphite ,peciality di!ision to cater to the re


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)ompeten$/ Sustainment

2resent-day "est practices re


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ptimi3e utili3ation o% resources including #ater energy

stationery.

Wastes minimi3ation including solid and li


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Introduce sound sa%ety health and en!ironment management

practices.

Conduct our "usiness responsi"ly through adoption o% sa%er

healthier cleaner and energy-e%%icient technologies.Comply #ith all applica"le legal and other re


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$he 9ompany commissioned its /D,((( $!5 e%pansion duringthe pre&ious year, ta8ing its total capacity to (,((( $!5. =o ata time when e&en mar8eting the &olumes of the pre&ious year

would ha&e posed a challenge, the 9ompany was nowreuired to -ring new capacities on stream without acompromise in efficiencies on the one hand and with adeuatemar8eting on the other.

I am happy to state that HEG responded commensurately tothe situation. $he 9ompany created new mar8ets andcustomers. It mar8eted &alueadded products to discerning

customers. It optimised resource consumption. It strengthenedoperating efficiencies. It widened funds sourcing andrationali@ed costs "for wor8ing capital# -y close to /(( -ps.Besides, the 9ompany was fortunate that a-undant rainfalltranslated into the second highest hydropower generation inour history. Besides our thermal power efficiencies were the-est e&er too.

$he result was that despite a slowdown, the 9ompanys sales&olumes remained at *(///* le&els the 9ompany impro&edrealisations at the time of an industrywide decline inrealisations.

'ast (orward

$he glo-al economy is e%pected to re&i&e gradually e&en asdownside ris8s remain significant. $he recessionary conditions

in Europe could persist the Euro region will continue to posethe largest glo-al downside ris8. $he I;6 estimate for glo-alG>! growth in *(/A is A.*+) "a downgrade from its initialestimate of A.+)#.

7nce the glo-al economy -egins to re&i&e, in&entoryrestoc8ing could emerge coupled with impro&ed steelproduction. Glo-al steel usage is e%pected to grow from /.*)

in *(/* to *.0) in *(/A "=ource4


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electrode demand. $his re-ound could well -e dri&en -y the=, where the = economy is estimated to grow /.:) in*(/A. $he E56-ased steel sector "more than () of the =

steel capacity# could catalyse the demand for graphiteelectrodes.


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2alue

HEG has in&ested in &arious initiati&es to enhance sta8eholder

&alue across the longterm. irectors, I

would li8e to than8 you for your continued support. I also ta8ethis opportunity to than8 our customers, employees, suppliers,ser&ice pro&iders, financial institutions and -an8ers for theircontri-ution towards the 9ompanys success.

irector

Dire$tor Report

Print

;ar*(/* ;ar *(/A>ear mem-ers,

$he >irectors ha&e pleasure in presenting their D/st 5nnual?eport andaudited statements of accounts for the year ended A/st ;arch,*(/A.

http://economictimes.indiatimes.com/directorsreport.cms?companyid=13630&year=2012&prtpage=1http://economictimes.indiatimes.com/directorsreport.cms?companyid=13630&year=2012http://economictimes.indiatimes.com/directorsreport.cms?companyid=13630&year=2012&prtpage=1http://economictimes.indiatimes.com/directorsreport.cms?companyid=13630&year=2012


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/. "i# 6inancial ?esults

"?s. in 9rore#

*(/*/A *(///*

Net =ales //:.DA /D*A.00

7ther 7perating Income +./ (.*

$otal Income from 7perations "Net# /**.//D*D./

7ther Income /A.( /.:0

$otal Income /A.*/ /DD/.D(

!rofit -efore E%ceptional items, 6inancecost, >epreciation and A(.:/ *+.(

5mortisation

E%ceptional Items "++.*(# "0*.+#

!rofit -efore 6inance cost, >epreciationand 5mortisation *+/.+/ /+.:+

6inance cost A.( D(.


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!rofit -efore >epreciation and 5mortisation /:.0//*+.(

>epreciation and 5mortisation *.D +:.0A

!rofit Before $a% /*+.*: :./D

!ro&ision for $a%ation4

9urrent Mear /.(0 .

Income $a% for earlier years A.A0 "/.D#

Net !rofit for the !eriod /(+.:0 *.A*

E!= "Basic# ?s. *.D /+.AD

"ii# 5ppropriations

5mount a&aila-le for appropriation D(.*A AA/./:

?e&ersal of proposed di&idend and di&idenddistri-ution ta% on shares /.*A-ought -ac8 >i&idend 4

a# 7n Euity =hares

!roposed >i&idend A/.0: /0.0


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-# >i&idend >istri-ution $a%

7n !roposed >i&idend +.DA A.*D

$ransfer to4

a# General ?eser&e *+.(( :.+(

-# >e-enture ?edemption ?eser&e /.*+

c# $ransfer from >e-enture ?edemption ?eser&e *+.(:

Balance carried forward A.0( A((.DA

*. 7&erall !erformance

$he 9ompany recorded Net =ales ?s.//:.DA crore ascompared with?s./D*A.00 crore in the pre&ious year. $he Net !rofit hasincreased to?s./(+.:0 crore as compared with ?s.*.A* crore in *(///*translatingto -asic earning per share at ?s.*.D as against ?s./+.AD in6inancialMear *(///*.

A. =u-sidiary 9ompany and 9onsolidated 6inancial

=tatements


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$he statement pursuant to =ection */* of the 9ompanies 5ct,/0+

relating to the su-sidiary 9ompany '';Cs HEG Graphite!roducts and=er&ices Ltd'' is anne%ed. 5lso, the consolidated financialstatementsalong with the 5uditors ?eport thereon, form part of the 5nnual?eport.

In terms of the 9ircular of the ;inistry of 9orporate 5ffairsdated th6e-ruary, *(//, the Board of >irectors has decided not toanne% theannual accounts of the su-sidiary 9ompany in this 5nnual?eport. $heannual accounts of the su-sidiary 9ompany and the relateddetailed

information shall -e made a&aila-le to the shareholders of the9ompanyand the su-sidiary 9ompany see8ing such information at anypoint of time. $he annual accounts of the su-sidiary company shall also-e 8eptfor inspection -y any shareholder at the registered office of the9ompany and of the su-sidiary 9ompany. $he 9ompany shall

furnish a hardcopy of details of accounts of su-sidiary 9ompany to anyshareholder,on demand.

D. >i&idend

$he Board, has recommended a di&idend at the rate of ?s.Cper share


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on Euity =hares of ?s./(C each for the financial year endedA/st;arch, *(/A, su-ect to your appro&al at the 5nnual General;eeting.

+. 7perations

$he analytical re&iew of the 9ompany''s performance and its-usinesses, including initiati&es in the areas of Human?esources and

9orporate =ocial ?esponsi-ility ha&e -een presented in thesection of ;anagement >iscussion and 5nalysis of this 5nnual ?eport.

Graphite Electrodes

>uring the year under re&iew, the production &olumes of

graphiteelectrodes were almost similar as compared with the lastfinancialyear. 7perational efficiencies, -etter e%change rates coupledwithcontrolled finance costs, impro&ed margins.

!ower Generation

Better a&aila-ility of lin8age coal for our capti&e thermal power plants and record power generation at our hydel power unit hashelpedimpro&e the -ottomline during the year.

$he 9ompany''s installed capti&e power capacity mitigates ris8of


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erratic power supply from the =tate grid for the entire e%pandedGraphite Electrode capacity of (,((( $!5.

. 9orporate Go&ernance

5 report on 9orporate Go&ernance forms part of the 5nnual?eport alongwith the 5uditors'' 9ertificate on its compliance.

:. ;anagement >iscussion and 5nalysis

;anagement >iscussion and 5nalysis ?eport as reuiredunder the Listing

5greements with the =toc8 E%changes forms part of the 5nnual?eport

. Internal 9ontrol =ystems and adeuacy thereof

$he 9ompany has an adeuate internal control systemcommensurate withthe si@e and nature of its -usiness.

5n internal audit programme co&ers &arious acti&ities and

periodicalreports are su-mitted to the management. $he 5udit9ommittee re&iewsfinancial statements and internal audit reports along withinternalcontrol systems. $he 9ompany has a well definedorganisationalstructure, authority le&els and internal rules and guidelines for

conducting -usiness transactions.


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0. !ersonnel

a# Industrial ?elations

$he industrial relations during the period under re&iew generallyremained cordial at all the plants of the 9ompany.

-# !articulars of Employees

$he information of employees recei&ing salary in e%cess of thelimitsas prescri-ed under the pro&isions of =u-section "*5# of=ection */:of the 9ompanies 5ct, /0+, who were employed throughout or for a part

of the financial year under re&iew is gi&en as an anne%ureforming partof this ?eport.

/(. !u-lic >eposits

Mour 9ompany has not in&ited any deposits from pu-licC

shareholders inaccordance with =ection +5 of the 9ompanies 5ct, /0+.

//. 9onser&ation of Energy, $echnology 5-sorption, 6oreignE%changeEarnings and 7utgo


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$he information with regard to 9onser&ation of Energy,$echnology

5-sorption, 6oreign E%change Earnings and outgo inaccordance with thepro&isions of =ection */:"/#"e# of the 9ompanies 5ct, /0+read withthe 9ompanies ">isclosures of particulars in the ?eport ofBoard of >irectors# ?ules, /0, is gi&en as an anne%ure forming part ofthis?eport.

/*. >irectors

$hree of your >irectors namely =hri >.N. >a&ar, =hri =he8har 5garwaland >r. amal Gupta shall retire -y rotation at the ensuing

5nnual

General ;eeting and -eing eligi-le, offer themsel&es for reappointment. $he Board recommends their re appointment.

Mour >irectors inform you a-out the resignation of =hri N;emaniw.e.f. /0th ;arch, *(/A. $he Board appreciates the &alua-lecontri-ution and guidance e%tended -y =hri . N. ;emaniduring his

tenure as a >irector of the 9ompany.

/A. 5uditors

;Cs >oogar 5ssociates, 9hartered 5ccountants and ;Cs=.=.othari

;ehta 9o., 9hartered 5ccountants, 5uditors of the 9ompany,will


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retire from their office at the ensuing 5nnual General ;eeting.$heyare, howe&er, eligi-le for reappointment. $hey ha&e furnisheda9ertificate to the effect that their reappointment will -e inaccordance with limits specified in =u-section "IB# of =ection**D of the 9ompanies 5ct, /0+. Mou are reuested to consider their reappointment.

$he 5uditors'' ?eport read along with notes to accounts is self

e%planatory and therefore does not call for any furthercomments.

/D. 9ost 5uditors

In conformity with the directi&es of the 9entral Go&ernment and-ased

on the 5udit 9ommittee recommendations at its meeting heldon ;ay A,*(/A, the Board has appro&ed the re appointment of ;Cs. N.>.Birla 9o., as the 9ost 5uditors of the 9ompany for the financial year *(/A*(/D, su-ect to appro&al of the 9entral Go&ernment.

/+. >irectors ?esponsi-ility =tatement $he >irectors confirmthat4

i# In preparation of the annual accounts, the applica-leaccountingstandards ha&e -een followed and there are no materialdepartures from

the same


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commitment and hard wor8 put in -y them for 9ompany''sachie&ements.

6or and on -ehalf of the Board of >irectors

!lace4 Noida ".!.# ?a&i Jhunhunwala

>ated4 ;ay A, *(/A 9hairman ;anaging>irector

Comapny Project

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