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HEG Ltd.

BSE: 509631 Sector: Engineering
NSE: HEG ISIN Code: INE545A01016
BSE 00:00 | 21 Jan 1667.15 -57.75






NSE 00:00 | 21 Jan 1665.40 -59.75






OPEN 1763.90
52-Week high 2626.15
52-Week low 910.85
P/E 38.60
Mkt Cap.(Rs cr) 6,435
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1763.90
CLOSE 1724.90
52-Week high 2626.15
52-Week low 910.85
P/E 38.60
Mkt Cap.(Rs cr) 6,435
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HEG Ltd. (HEG) - Director Report

Company director report

Dear Members

Your Directors have the pleasure of presenting their 49th Annual Reporttogether with Audited Financial Statements for the financial year ended 31stMarch 2021.

1. Financial Results (Rs. in Crores)
Particulars 2020-21 2019-20
Net sales 1234.43 2101.89
Other operating income 21.80 47.14
Total income from operations (Net) 1256.23 2149.02
Other income 112.91 143.76
Total income 1369.14 2292.78
Profit before _nance cost depreciation and amortisation 53.73 137.93
Finance cost 11.37 36.51
Profit before depreciation and amortisation 42.36 101.42
Depreciation and amortisation 73.12 72.13
Profit/(Loss) before tax (30.76) 29.29
Provision for taxation:
Current tax 0.20 (0.19)
Deferred tax (5.66) (23.90)
Net Profit/(Loss) for the period (25.30) 53.37
EPS (Basic) I (6.56) 13.83

Note: No amount transferred to reserves.

2. Overall Performance

The Company recorded net sales of Rs.1234.43 Crores during the financial year 2020-21as compared to Rs.2101.89 Crores in the previous financial year. The Net Loss during thefinancial year 2020-21 was at Rs.25.30 Crores as compared to a net profit of B 53.37Crores in financial year 2019-20 translating to Basic Earnings Per Share at B(6.56) forthe financial year 2020-21 as against Rs.13.83 in financial year 2019-20.

3. Impact of Covid-19

As a result of the pandemic the global economy shrunk by 3.3% in 2020. As the worldgoes through the second / third waves each country is trying hard to keep their industryrunning.

Till 24th March 2020 the operations of the Company were normal.Thereafter on announcement of lockdown there was no operating business activity exceptin case of some specific processes which are continuous in nature and take about a monthto shut down till 23rd April 2020.

The Company started operations again from 23rd April 2020 when all processeshad started except Green and Baking which was eventually started on 28th April2020.

The plant managed the Covid crises very well and has been running successfully sincethen without any interruption or slow down with our capacity utilisations/sales volumesgoing up consistently.

Since we export about 70% of our production to more than 30 countries including USMiddle East Europe SE Asia etc. so our business is not impacted by slow down in one ortwo particular countries.

Our business is based upon the steel sector (Electric arc furnaces) which is largelydependent upon the construction sector automobiles and other white goods. Due to COVID 19pandemic the overall steel demand had reduced in first half of 2020 and since then wehave seen a revival of demand and steel production returning to pre COVID levels.

We are optimistic that once the COVID-19 impact gets over the growth of steel sectorwill rebound further.

4. State of Company's Affairs

The analytical review of the Company's performance and its businesses includinginitiatives in the areas of Human Resources and Corporate Social Responsibility have beenpresented in the section of Management Discussion and Analysis of this Annual Report.

Electrode Sector

In past years from 2010-2017 electrode prices have been extremely low due to lowerdemand for electrodes compared to capacity. As a result of which 6 plants in the westernworld closed down taking out 200000 tons of excess capacity. When the capacity gotbalanced came the sudden clampdown on Steel industry and Graphite industry in China dueto pollution concerns. As the western world electrode capacity was already balanced withdemand as a result of closures and also because western world steel plants startedproducing more due to drop in exports from China there was a sudden spurt in demand ofelectrodes which led to shooting up of electrode prices.

In the year of 2017 and 2018 other suppliers outside China increased their productionlevels to meet the additional demand. Meanwhile Chinese electrode players also modifiedtheir plants to meet the new pollution norms and brought back their capacity. At the sametime the EAF did not grow as expected in China. This led to electrode supply becoming morethan electrode demand and thus the normalization of electrode prices around middle of2019.

As the electrode supply was less in 2018 most of the steel companies overboughtelectrodes creating excess inventories. When the electrode supply eased and prices startedto fall all the steel companies started to correct their inventory levels from beginningof 2019. This correction should have happened by the end of 2019 but due to fall in EAFsteel production the inventories are taken longer to correct.

By the end of 2020 the excess inventories with the customers have got corrected andnow the consumption is showing in the real demand for Graphite electrodes. For the lasttwo quarters we have seen the steel production return to the pre-COVID levels in rest ofthe world which is restoring the demand of GE.

There is ongoing preference for EAF steel making over BOF in Rest of the world and alsoin China. China has changed some of its policies to promote more EAF steel productionwhich bodes well for GE demand.

We remain one of the most cost competitive and quality producer of graphite electrodesin the world ready to take all kind of opportunities

Power Generation

The Company has captive power generation capacity of 76.5MW (comprising two thermalpower plants and a hydroelectric power facility) leading to sustained supply of reliableto energy for its graphite electrode facility. Excess power generated was sold in themarket through IEX and bi-partite power purchase agreement with open access to consumers.

The turnover of the Power Segment decreased to Rs.22.31 Crores in FY 2020-2021 (afterinter-segmental sales) from Rs.31.18 Crores in FY2019-20 (after inter-segmental sales) dueto following reasons:

Lower realisation on selling of Renewal energy certificate (REC) on account of revisionin floor price by MPERC.

Increased Power intake from the Madhya Pradesh Electricity Board (MPEB) and reducedcaptive power from the thermal plant for availing rebate of Rs.2 per kwh.

This initiative reduced the volume of captive generation of thermal and transfer tographite and reduced the average realisation in the power segment as the revenue in powersegment is booked based on the corresponding rate of power defined by the state andutilities.

This measure though has reduced revenue and bottom-line in the thermal power segmenthad a favourable impact on the overall cost of power consumed in the graphite electrodebusiness.

5. Change in Share Capital

During the Financial Year 2020-21 there was no change in the Share Capital of theCompany.

6. Material Changes and Commitments

No material changes and commitments affecting the financial position of the Companyhave occurred between the end of the financial year of the Company to which the financialstatements relate and the date of the report.

7. Change in the Nature of Business

There is no change in the nature of business during the financial year 2020-21.

8. Subsidiary Associate Companies or Joint Ventures

There are two Associates of the Company namely Bhilwara Infotechnology Limited andBhilwara Energy Limited.

Bhilwara Infotechnology Ltd. had a turnover (Revenue from Operations) of Rs.34.37Crores and Net Profit was Rs.2.83 Crores in the financial year 2020-21.

Bhilwara Energy Ltd. had a consolidated turnover (Revenue from Operations) of B 273.35Crores and Net Profit (attributable to owners of the parent) was B 12.80 Crores as pertheir audited consolidated financial statements for the financial year 2020-21.

The Company has neither have Subsidiaries nor Joint Ventures. No Company hasbecome/ceased to be an Associate or Joint Venture during the financial year 2020-21.

Performance of Associate Companies and their contribution to overall performance of theCompany has been mentioned in the Notes to Accounts to the consolidated financialstatements.

Pursuant to the provisions of Section 129(3) of the Companies Act 2013 a statementcontaining the salient features of financial statements is annexed in the Form AOC-1 tothe consolidated financial statements and hence not repeated here for the sake of brevity.

9. Consolidated Financial Statements

The Consolidated Financial Statements have been prepared by the Company in accordancewith applicable provisions of the Companies Act 2013 Accounting Standards and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015. The auditedconsolidated financial statements together with Auditors' Report form part of the AnnualReport. The Auditor's Report does not contain any qualification reservation or adverseremarks.

10. Dividend

Your Directors are pleased to recommend a dividend at the rate of B 3/-per equity shareon 38595506 equity shares of face value of Rs.10 each for the financial year ended 31stMarch 2021 subject to the approval of the Shareholders at the ensuing 49thAnnual General Meeting (AGM) of the Company. The dividend if declared by the Shareholdersin the AGM will be subject to deduction of tax at source at applicable rates.

As per Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 the Dividend Distribution Policy is attached as Annexure IVwhich form part of this report and is also available on the website of the Company.

11. Corporate Governance

A report on Corporate Governance forms part of this Report along with the Auditors'Certificate on Corporate Governance as required under SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015. The Auditors' Certificate for the financialyear 2020-21 does not contain any qualifications reservations or adverse remarks.

12. Management Discussion and Analysis

Management Discussion and Analysis Report as required under the SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 forms part of Annual Report.

13. Business Responsibility Report

As per Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 a Business Responsibility Report describing the initiatives taken bythe Company from an environmental social and governance perspective is attached as partof the Annual Report.

14. Internal Control/Internal Financial Control Systems and Adequacy Thereof

The Company has an adequate internal control system commensurate with the size andnature of its business. An internal audit programme covers various activities andperiodical reports are submitted to the top management. The Company has a well-definedorganisational structure authority levels and internal rules and guidelines forconducting business transactions.

Further the Internal Financial Control framework is under consistent supervision ofAudit Committee Board of Directors and also Independent Statutory Auditors. During theyear no reportable material weakness in the design or operations was observed.

15. Personnel

a) Industrial relations

The industrial relations during the period under review generally remained cordial atall the plants of the Company.

b) Particulars of employees

The information required pursuant to Section 197 read with Rule 5 of The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 is annexed herewith asAnnexure - I.

16. Public Deposits

Your Company has not invited any deposits from public/ shareholders in accordance withChapter V of the Companies Act 2013.

17. Significant and Material Orders Passed By The Regulators Or Courts Or Tribunals

There were no significant material orders passed by the Regulators/ Courts/ Tribunalsduring the financial year 2020-21 which would impact the going concern status of theCompany and its future operations.

18. Conservation Of Energy Technology Absorption Foreign Exchange Earnings And Outgo

The information with regard to Conservation of Energy Technology Absorption ForeignExchange Earnings and Outgo in accordance with the provisions of Section 134(3)(m) of theCompanies Act 2013 read with Rule 8 of the Companies (Accounts) Rules 2014 is given as Annexure- II forming part of this Report.

19. Directors and Key Managerial Personnel


Shri Satish Chand Mehta (DIN 02460558) Independent Director was re-appointed byShareholders through Postal Ballot on 14th March 2021 for a period of fiveyears w.e.f. 23rd June 2021.

Shri Riju Jhunjhunwala (DIN: 00061060) and Shri Shekhar Agarwal (DIN: 00066113) shallretire by rotation at the ensuing Annual General Meeting and being eligible offerthemselves for re-appointment. The Board hereby recommends their re-appointment forapproval of shareholders in the ensuing Annual General Meeting.

All Independent Directors have given declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and Regulation16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. Theyhave complied with the Code for Independent Directors prescribed in Schedule IV of theCompanies Act 2013.

In the opinion of Board Independent Directors fulfil the conditions specified inCompanies Act 2013 read with schedules and rules thereto as well as SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 and Independent Directors areindependent of management.

The Company has a Code of Conduct for the Directors and Senior Management Personnel.This Code is a comprehensive code applicable to all Directors and members of the SeniorManagement. A copy of the Code has been put on the Company's website

The Code has been circulated to all the Members of the Board and Senior ManagementPersonnel and compliance of the same has been affirmed by them.

The brief profile pursuant to Regulation 36 of the SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 and Secretarial Standards-2 of the Directorseligible for appointment/ re-appointment forms part of the Notice of Annual GeneralMeeting and Corporate Governance Report.


The following are the Key Managerial Personnel of the Company: a) Shri RaviJhunjhunwala Chairman Managing Director & CEO b) Shri Manish Gulati ExecutiveDirector c) Shri Gulshan Kumar Sakhuja Chief Financial Officer d) Shri Vivek ChaudharyCompany Secretary

20. Board Evaluation

The Board has carried out an annual evaluation of its own performance the Directorsindividually as well as the evaluation of the working of its Committees in the manner asenumerated in the Nomination and Remuneration Policy in accordance with the provisions ofCompanies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015. The evaluation exercise covered various aspects of the Board'sfunctioning such as composition of the Board & Committee(s) their functioning &effectiveness contribution of all the Directors and the decision making process by theBoard.

Your Directors express their satisfaction with the evaluation process and inform thatthe performance of the Board as a whole its Committees and its member individually wereadjudged satisfactory.

21. Nomination and Remuneration Policy

The Nomination & Remuneration Policy of the Company is in place and is attached as Annexure– III to this Report.

22. Meetings of the Board

The Board of Directors met four times in the financial year 2020-2021 through VideoConferencing as permitted by relevant MCA circulars & SEBI Circulars read with Rule 3of the Companies (Meetings of Board and its Powers) Rules 2014 under provisions ofCompanies Act 2013. The details of the Board Meetings and the attendance of the Directorsare provided in the Corporate Governance Report.

23. Contracts and Arrangements with Related Parties

All related party contracts/arrangements/transactions that were entered into during thefinancial year were on an arm's length basis and were in the ordinary course of business.

All Related Party Transactions are placed before the Audit Committee for approval.Prior omnibus approval of the Audit Committee was obtained for the transactions which areof a foreseen and repetitive nature. The statement of transactions entered into pursuantto the omnibus approval so granted is placed before the Audit Committee for approval on aquarterly basis. The statement is supported by a Certificate from the Statutory AuditorsInternal Auditor and Chief Financial Officer.

The policy on Related Party Transactions as approved by the Board is uploaded on theCompany's website the weblink of which is as under: Thereare no pecuniary relationships or transactions of Non- Executive Directors vis--vis theCompany that have a potential conflict with the interests of the Company.

In terms of Regulation 23 of SEBI (Listing Obligations and Disclosure RequirementsRegulations) 2015 the Company has submitted the half yearly disclosure of related partytransactions on a consolidated basis to the BSE Ltd and National Stock Exchange of IndiaLtd.

No material Related Party Transactions i.e. transactions exceeding ten percent of theannual consolidated turnover as per the last audited financial statements were enteredduring the financial year of the Company. Accordingly the disclosure of Related PartyTransactions as required under Section 134(3)(h) of the Companies Act 2013 in Form AOC-2is not applicable.

24. Audit Committee

The composition of the Audit Committee is stated in the Corporate Governance Report.All the recommendations of the Audit Committee were accepted by the Board during thefinancial year 2020-21.

25. Auditors

M/s SCV & Co LLP having (Firm Registration No- 000235N) Chartered Accountants theStatutory Auditors of the Company will hold office until the conclusion of the 50thAnnual General Meeting of the Company to be held in the year 2022.

Pursuant to the notification dated May 7 2018 issued by Ministry of CorporateAffairs the requirement for ratification of appointment of Auditors by the shareholdersat every Annual General Meeting has been done away with. Further the Auditors haveconfirmed their eligibility under Section 141 of the Companies Act 2013 and the rulesmade thereunder.

The Auditors' Report read along with Notes to Accounts is self-explanatory andtherefore does not call for any further comments. The Auditors' Report does not containany qualification reservation or adverse remark.

No fraud has been reported by the Statutory Auditors under Section 143(12) of theCompanies Act 2013 and the rules made thereunder.

26. Cost Auditors

The Cost Audit for financial year ended March 31 2020 was conducted by M/s. N.D. Birla& Co. (M. No. 7907). The said Cost Audit Report was filed on 8th September2020.

No fraud has been reported by the Cost Auditors under Section 143(12) of the CompaniesAct 2013 and the rules made thereunder.

Based on the recommendation of Audit Committee at its meeting held on 27thMay 2021 the Board has approved the re-appointment of M/s. N.D. Birla & Co. (M. No.7907) as the Cost Auditors of the Company for the financial year 2021- 2022 on aremuneration of B 200000/- plus applicable taxes and out of pocket expenses that may beincurred by them during the course of audit.

As required under the Companies Act 2013 the remuneration payable to the Cost Auditoris required to be placed before the Members in a general meeting for their ratification.Accordingly a resolution seeking Member's ratification for the remuneration payable toM/s. N.D. Birla & Co. Cost Auditors is included in the Notice convening the ensuingAnnual General Meeting.

27. Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hadappointed M/s. GSK & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company for the financial year 2020-21. TheSecretarial Audit Report is annexed herewith as

Annexure - V.

No fraud has been reported by the Secretarial Auditors under Section 143 (12) of theCompanies Act 2013 and the rules made thereunder.

The Board has re-appointed M/s. GSK & Associates Company Secretaries in practiceas Secretarial Auditor of the Company for the financial year 2021-22.

28. Qualification Reservation or Adverse Remark in the Audit Reports.

There is no qualification reservation or adverse remark made by the Statutory or Costor Secretarial Auditors in their Audit Reports issued by them.

29. Business Risk Management

The objective of risk management at the Company is to protect shareholders value byminimizing threats or losses and identifying and maximising opportunities. Anenterprise-wide risk management framework is applied so that effective management of riskis an integral part of every employee's job.

The Risk Management Policy of the Company is in place. The Company's risk managementstrategy is integrated with the overall business strategies of the organization and iscommunicated throughout the organisation. Risk management capabilities aide inestablishing competitive advantage and allow management to develop reasonable assuranceregarding the achievement of the Company's objectives.

The annual strategic planning process provides the platform for identificationanalysis treatment and documentation of key risks. It is through this annual planningprocess that key risks and risk management strategies are communicated to the Board. Theeffectiveness of risk management strategies is monitored both formally and informally bymanagement and process owners. There is no major risk which may threaten the existence ofthe Company.

30. Corporate Social Responsibility (CSR)

As part of its initiatives under Corporate Social Responsibility (CSR) the Company hasundertaken projects in the areas of promotion of education eradicating hunger &poverty initiatives towards Community Service and Rural Development HealthcarePlantation & Environment Development Protection of National heritage Art Cultureetc. These projects were in accordance with the CSR Policy of the Company and Schedule VIIof the Companies Act 2013.

The CSR Committee comprises Shri Ravi Jhunjhunwala (Chairman) Smt. Vinita Singhania(member) and Shri Satish Chand Mehta (member).

The Company has requisite Corporate Social Responsibility Policy in accordance with theprovisions of the Act and Rules made there under as amended. The CSR policy may beaccessed on the Company's website at the link mentioned below:

The various CSR projects inter-alia undertaken will bring qualitative changes in thelives of the community around the plant location. One of the key project is theempowerment of farmers by fruiting cycle under Project Global Raisen (Rural EconomicTransformation) which will result in improvement in their income resulting into theirhigher familial and societal status. During the financial year 2020-21 the Company hasestablished first megakitchen in Bhopal which will provide 40000 meals a day servingapprox.. 900 schools. The Capital expenditure have been completed in March 2021 andkitchen will start once the Covid-19 pandemic eases.

The Annual Report on CSR activities is enclosed as Annexure - VI forming part of thisreport.

31. Internal Auditors

Based on the recommendation of Audit Committee the Board has approved there-appointment of M/s. S.L. Chhajed & Co. LLP as the Internal Auditors of the Companyfor the financial year 2021-2022.

32. Directors Responsibility Statement

The Directors confirm that:

i) In preparation of the annual accounts the applicable accounting standards have beenfollowed and there are no material departures from the same; ii) They have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company at the end of the financial year 2020-21 and of the loss of the Company forthe year under review;

iii) They have taken proper and sufficient care for maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act 2013 for safe guarding theassets of the Company and for preventing and detecting frauds and other irregularities;

iv) They have prepared the annual accounts on a going concern basis;

v) They have laid down internal financial controls to be followed by the Company andthat such internal financial controls are adequate and are operating effectively; and

vi) They have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems are adequate and operating effectively.

33. Vigil Mechanism /Whistle Blower Policy

The Company has a vigil mechanism named "Whistle Blower Policy" which isoverseen by the Audit Committee. The Policy inter-alia provides safeguards againstvictimization of the Whistle Blower. Employees and other stakeholders have direct accessto the Chairperson of the Audit Committee for lodging concerns if any for review. Thepolicy is posted on the website of the Company the weblink of which is as under:

34. Particulars of Loans Guarantees or Investments

Details of Loans Guarantees and Investments covered under the provisions of Section186 of the Companies Act 2013 form part of the notes to the financial statements providedin the Annual Report.

35. Insider Trading

In compliance with the Securities and Exchange Board of India (Prohibition of InsiderTrading) Regulations 2015 (Regulations) your Company has adopted the following-

i) Code of Conduct for Regulating Monitoring and Reporting of Trading by Insiders- Thesaid Code lays down guidelines which advise Insiders on the procedures to be followed anddisclosures to be made in dealing with the shares of the Company and cautions them onconsequences of non-compliances.

ii) Code of Practices and Procedures of Fair Disclosures of Unpublished Price SensitiveInformation- The Code ensures fair disclosure of events and occurrences that could impactprice discovery in the market.

iii) Policy for dealing with Unpublished Price Sensitive Information (UPSI) and WhistleBlower Policy for employees to report any leak or suspected leak of UPSI- The policy aimsto enable the employees of the Company to report any leak or suspected leak of UPSIprocedures for inquiry in case of leak of UPSI or suspected leak of UPSI and initiateappropriate action and informing the SEBI promptly of such leaks inquiries and results ofsuch inquiries.

iv) Internal Control Mechanism to prevent Insider Trading- The Internal ControlMechanism is adopted to ensure compliances with the requirements given in the regulationsand to prevent Insider Trading. The Audit Committee reviewed and found the same in order.

36. Annual Return

In terms of the Section 92 (3) of Companies Act 2013 as amended the Annual Return ofthe Company is placed on the website of the Company on the following link:

37. General Disclosure

a) The Company has maintained Cost Records in accordance with Section 148(1) of theCompanies Act 2013.

b) The Company has a group policy in place against Sexual Harassment in line with therequirements of the Sexual Harassment of Women at the Workplace (Prevention Prohibition& Redressal) Act 2013. Internal Complaints Committee (ICC) has been set up to redresscomplaints received regarding sexual harassment. The Company has complied with theprovisions of abovesaid act. The Company has undertaken 10 workshops or awarenessprogrammes against sexual harassment of women at the workplace. No complaint of SexualHarassment was received during the financial year 2020-21.

c) The Company is in compliance of all applicable secretarial standards issued by TheInstitute of Company Secretaries of India from time to time.

38. Electronic Communication

As a responsible corporate citizen the Company supports the ‘Green Initiative'undertaken by the Ministry of Corporate Affairs Government of India enabling electronicdelivery of documents including the Annual Report etc. to shareholders at their e-mailaddress registered with the Depository Participants and Registrar & Transfer Agent.

To support the ‘Green Initiative' and in compliance of Rule 18 of the Companies(Management and Administration) Rules 2014 as amended from time to time Members whohave not yet registered their email addresses or want to update a fresh email id arerequested to register the same with their Depository Participant in case the shares areheld by them in electronic form and with Company's RTA in case the shares are held by themin physical form for receiving all communications including Annual Report NoticesCirculars etc. from the Company electronically.

Further as permitted by MCA Circulars and SEBI Circulars issued from time to time inview of the prevailing Covid-19 Pandemic owing to the difficulties involved indispatching of the physical copies of the Notice of the 49th AGM and the AnnualReport of the Company for the financial year ended 31st March 2021 includingtherein the Audited Financial Statements for the year 2020-21 the above documents arebeing sent only by email to the Members.

39. Acknowledgements

Your Directors wish to place on record their appreciation for the valuable assistanceand support received by your Company from banks financial institutions the CentralGovernment the Government of Madhya Pradesh the Government of Uttar Pradesh and theirdepartments. The Board also thanks the employees at all levels for the dedicationcommitment and hard work put in by them.

The Directors regret the loss of life due to COVID-19 pandemic and are deeply gratefuland have immense respect for every person who risked their life and safety to fight thispandemic.

The Directors appreciate and value the contribution made by every member of the HEGfamily.

For and on behalf of the Board of Directors
Ravi Jhunjhunwala
Place: Noida (U.P.) Chairman Managing Director & CEO
Dated: 27th May 2021 DIN: 00060972