hindustan housing company ltd Management discussions

Annexure - B

87^th Annual Report FY 2022-2023

Background

The Hindustan Housing Company Limited ("the Company") is a public listed Company incorporated in the Year 1934 and is a part of the Bajaj Group of Companies. The equity shares of the Company are listed on BSE Ltd.since the Year 1938 under Security Code No.: 509650.

The Company is a Service Company and it is presently not carrying on any manufacturing or trading activities. The principal business activities of the Company consist of rendering and providing various kinds of administrative and allied services and facilities to companies and entities of the Bajaj Group. Such services and facilities include Air-conditioning Systems, General Administrative and other allied Services.

The major sources of income of the Company are (a) Income received from rendering and providing various administrative and allied services and facilities as aforesaid and (b) Dividend Income.

Financial Performance

The Net Worth of the Company as on 31.03.2023 is Rs. 15.95 Crores (excluding Other Comprehensive Income). The Total Revenue and Net Profit (after tax) of the Company during the year under review were Rs. 7.17 Crores and Rs. 1.92 Crores respectively as compared to Rs.5.95 Croresand Rs. 1.57 Crores respectivelyin the previous year.

Risks and Concerns

The current and future financial performance of the Company is linked to and is directly related to the services rendered as detailed above and dividend payouts by the listed companies of the Bajaj Group in which it holds its investments. The Company does not have any borrowings from any banks or financial institutions and neither has it accepted nor does it hold anypublic deposits.

Since all the customers of the Company are companies and entities of the Bajaj Group, the Company presently does not have any risk exposure in respect of the services so rendered.

However, at the same time, the Company is also totally dependent on all such companies / entities of the Bajaj Group for its business and any future change in their business plans to avail the aforesaid services and facilities from the Company might adversely affect the operations of the Company. However, considering the nature of services and facilities rendered and provided by the Company to the Bajaj Group Companies, the Company does not anticipate any adverse impact on its operations in the near future.

Internal Control Systems and their Adequacy

The Audit Committee of the Board of Directors of the Company periodically evaluates the adequacy of the internal controls and processes, and ensures strict adherence to its laid down processes and procedures as well as to the prescribed regulatory and legal framework to manage and minimize the risk. The Committee further reviews the internal audit reports and effectiveness of the internal financial controls.

Human Resources

The Company recognises its employees as a critical asset of the organisation and lays due emphasis on all round development of its employees.

Significant Ratios

The key financial ratios of the Company for the current and previous financial year and details of the significant changes in these ratios, to the extent applicable, as required by the SEBI Listing Regulations are given hereinbelow:

Particulars	FY 2022- 2023	FY 2021- 2022	% Change
Current Ratio	15.23	12.94	17.70%
Operating Profit Margin	41.95%	41.92%	0.07%
Net Profit Margin	32.18%	31.73%	1.42%
Debtors Turnover Ratio	29.72	16.77	77.18%
Return on Net Worth	12.06%	11.32%	6.54%

Cautionary Statement

Statements made herein describing the Companys objectives and expectations may be ‘forward looking within the meaning of applicable laws and regulations. Actual results may differ from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in government regulations, tax laws, economic developments and other incidental factors.