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HLE Glascoat Ltd Management Discussions

440.75
(-0.65%)
Jul 19, 2024|09:44:58 AM

HLE Glascoat Ltd Share Price Management Discussions

Forming part of the Board Report

ECONOMIC OVERVIEW

The fiscal year 2022-23 was marked with global uncertainties and unforeseen headwinds. Soon after the pandemic receded, the war in Ukraine broke out in February 2022. This had a cascading effect on not just the global economy but also the Indian economy, which saw challenges arising from rising inflation and supply chain and trade disruptions. The rising inflation impacted the prices of metals, power, fuel and food as well. The Consumer Price Index (CPI) of India was estimated at 6.7% in 2022-23, compared to 5.5% in 2021-22. The target range for inflation was fixed at 4% with an upper tolerance of 6%. However, between April and October 2022 the CPI was outside the target range set by the Reserve Bank of India. To bring inflation under control, RBI increased the policy repo rate under the liquidity adjustment facility (LAF) by 250 basis points from 4.0% to 6.50% during 2022-23. Additionally, the Government cut down import duty on major inputs such as ferronickel, coking coal, among others to zero; rolled out phase- wise reduction in excise duty of petrol and diesel; waived off customer duties on cotton and prohibited export of wheat.

The year 2022 marked the 75th year of Indias Independence and despite the headwinds, 2022-23 saw India emerge as the fifth largest economy in the world, measured in current dollars. In real terms, the economy is expected to grow at 7.2% during 2022-23 compared to 9.1% during 2021-22. Indias aspiration to achieve high income status by 2047 will need to be realized through a growth process that delivers broad based gains to the bottom half of the population.

Indias economic growth in 2022-23 has largely been led by private consumption and capital formation. It has helped generate employment as seen in the declining urban unemployment rate and in the faster net registrations in the Employee Provident Fund. Global growth has been projected to decline in 2023 and is expected to remain generally subdued in the following years as well. The slowing demand will likely push down global commodity prices and improve Indias CAD in 202324. Manufacturing and investment activities gained traction during the fiscal. While the growth of exports moderated, the rebound in domestic consumption has sufficiently matured to take forward the growth of Indias economy.

The FY23 for India has reinforced the countrys belief in its economic resilience. The economy has withstood the challenge of mitigating external imbalances caused by geopolitical conflicts and inflationary pressures.

ECONOMIC OUTLOOK

Indias recovery from the pandemic was relatively quick and growth in the upcoming year will be supported by solid domestic demand and a pickup in capital investment. The current growth trajectory will be supported by multiple structural changes that have been implemented over the past few years. The private sector - financial and non-financial was repairing balance sheets, which led to a slowdown in capital formation in the previous decade. With the increasing thrust of the Government on infrastructure and capital expansion and strong credit growth, India is poised for sustained growth in the foreseeable future. The Union Budget 2023-24 speaks volumes of the Governments increasing focus on infrastructure, financing new businesses and making India more self-reliant and self-employed. The GDP growth of the country in 2023-24 is projected at 6.5%.

INDUSTRY OVERVIEW Engineering Sector

Dema nd in the engin eerin g in dustry segment is d riven by investments and capacity creation in core sectors like power, infrastructure developments, mining, oil and other sectors like the general manufacturing sector, automotive and process industries and consumer goods industry. The engineering services market is projected to grow at a CAGR of 8%. One of the primary factors driving the increased acceptance of the engineering services market is expected to be the expanding collaboration between original equipment manufacturers (OEM) and engineering service providers (ESP). The increasing need to shorten product lifecycles, improve cost efficiencies and the rising demand for diverse downstream products is expected to support market expansion. The market for engineering services has been expanding steadily along with clients willingness to outsource various services to reduce costs.

In Budget 2023-24, the Government has committed an outlay of Rs. 10 lakh crore (US$ 120 billion) towards infrastructure capital expenditure compared to Rs. 7.5 lakh crore (US$ 90 billion) (BE) during 2022-23. An Urban Infrastructure Development Fund (UIDF) will be managed by the National Housing Bank, which will enable creation of infrastructure in Tier II and III cities by supporting viability gap funding, enabling creation of more bankable projects, enhancing access to external funding, among others. To enhance opportunities for private investment in infrastructure, Infrastructure Finance Secretariat is being established who will assist all stakeholders for more private investment in infrastructure, including railways, roadways, urban infrastructure, and power. Rising demand for environment-

friendly buildings coupled with government initiatives to revamp and enhance the countrys depleted infrastructure, and increasing public and private sector investments in residential, commercial, healthcare and educational infrastructure construction projects globally are providing the civil engineering market with the opportunity to expand exponentially. Industrial goods manufacturing organizations are heavily embracing the execution of private, public and hybrid clouds to modernize their information technology driven infrastructure, drive automation and streamline inheritance processes. The ability of the industrial internet of things to reduce downtimes, find and fix mistakes and lower the cost of supervision is expected to be a key factor in the growth of the industrial segment. The Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, ensuring India remains an attractive and investor-friendly destination.

Pharmaceutical Sector

Standing tall as the 3rd largest pharmaceutical producer and the largest generic drug manufacturer in the world, the Indian pharmaceutical market has enormous potential. The pharmaceutical industry in India carves a significant part of the nations foreign trade and offers lucrative potential for investors as well. Millions of people around the world receive affordable and inexpensive generic medications from India, which also runs a sizable number of plants that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and Drug Administration (USFDA).

Medicine spending in India has been on the rise and is projected to grow 9-12% over the next five years, helping India emerge as one of the top 10 countries in terms of medicine spending. The Indian Government has taken many steps to reduce costs and bring down healthcare expenses. The National Health Protection Scheme, which aims to offer universal healthcare, the ageing population, the rise in chronic diseases and other government programmes, including the opening of pharmacies that offer inexpensive generic medications, is collectively expected to contribute to boost the Indian pharmaceutical industry. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. Additionally, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, antidepressants and anti-cancers, which are on the rise.

According to EY and FICCI, the Indian pharmaceutical market is estimated to touch US$ 130 billion in value by the end of 2030 on the back of a growing consensus over providing new

innovative therapies to patients. According to government data, the Indian pharmaceutical industry is worth approximately US$ 50 billion, with more than US$ 25 billion of the value carved by exports. About 20% of the global exports in generic drugs are met by India. Indian pharma companies have a substantial share in the prescription market in the US and EU. The largest number of FDA-approved plants outside the US are in India.

Chemical Industry

India is the 14th largest exporter and 8th largest importer of chemicals in the world. The Indian chemical sector forms the building blocks and raw materials for several downstream sectors. The Indian chemical industry has been growing at more than 10% over the past 10 years. The Indian chemicals and petrochemicals sector is expected to attract an investment worth Rs. 8 lakh crore by 2025, driven by demand from various downstream sectors and the China Plus One strategy. The sector has also been strongly supported by various government reforms such as Make in India or Atmanirbhar Bharat Abhiyaan, thereby, increased focus on infrastructure projects. Additionally, a concessional income tax rate of 15% for new manufacturing companies also drives the growth of chemical sector in the country. Further, various policies announced in the Budget 2023-24 would certainly generate demand for a variety of chemicals including construction chemicals, emission control catalyst, polyurethane, TPUs and bio-pesticides, among others. Changes in BCD rates of various goods like crude glycerin, denatured ethyl alcohol, acid grade fluorspar, specified chemicals for manufacture of pre-calcined Ferrite Powder is expected to provide impetus to increase domestic demand for these products.

A share of 22% of the total chemicals and petrochemicals market in India is captured by specialty chemicals. The Indian chemical industry, led by the Indian Chemical Council (ICC), has set a goal of reaching $ 300 billion by 2025, which requires an investment of about $ 75 billion to $ 100 billion to decrease import dependency and improve chemical products exports. India is the fourth largest producer of agrochemicals across the world and it is projected to reach $ 4.7 billion by 2025, growing at a CAGR of 8.6% between 2021 and 2025. The construction chemical industry in India is growing swiftly on the back of rising construction spending in the country and increasing government investments in infrastructure projects, such as Make in India, Housing for All, construction of flyovers, metros, etc. Speciality chemicals carve ~20% of the total chemicals market in India by value and is projected to reach $ 64 billion by 2025. Manufacturers of speciality chemicals can target segments such as agrochemicals, pharmaceuticals, textiles and polymers, among others.

A 2034 vision for the chemicals and petrochemicals sector has been set up by the Government to explore opportunities

to improve domestic production, reduce imports and attract investments in the sector. The Government plans to implement production-linked incentive system with 10-20% output incentives for the agrochemical sector to create an end-to-end manufacturing ecosystem through the growth of clusters.

COMPANY OVERVIEW

HLE Glascoat Limited (hereafter referred to as the Company or HGL) is a renowned manufacturer of specialized process equipment for the chemical and pharmaceutical industries. Established in 1981 as HLE Engineers Private Limited, the Company acquired Swiss Glascoat Equipments Limited in 2017 to emerge as HLE Glascoat by way of a scheme of arrangement in 2019. The Company stands as the leading producer of Filtration and Drying Equipment and Glass Lined Equipment globally.

The Company is engaged in two main engineering businesses, namely manufacturing of specialized Filtration and Drying equipment and other chemical engineering equipment and manufacturing of Glass-lined reactors and equipment. The Companys products in the Engineering business (Filtration and Drying equipment and Glass-lined equipment) are predominantly used by the manufacturers of Active Pharma Ingredients (API) and Chemicals (agrochemical, specialty/ fine chemicals and dyes and pigment industries).

The Company caters to both the Indian and the international markets, providing them with superior quality engineering products. Over the years, HGL has emerged as a leader in the domestic market by catering to diverse downstream industries and applications ranging from pharmaceuticals/API, specialty chemicals, agrochemicals/ pesticides, dyes and pigments, to intermediates and other conceivable corrosion-prone areas in the chemical processing industry.

The Company benchmarks its products to international standards and is compliant with stringent quality norms, striving to service its customers with superior quality products. The Company name is synonymous with trust and faith, which has enabled HGL to reinforce its brand recall amongst its customers over the years.

HGL has an excellent track record of growth and profitability and its penetration in the export markets has been gaining good traction over the years. With the help of the Thaletec GmbH acquisition, the Company will further strengthen its position in the international markets.

A. Financial performance vis-a-vis Operational performance

(Rs. in Lakhs)

Particulars

Consolidated

Standalone

FY 2022-23 FY 2021-22* FY 2022-23 FY 2021-22*

Total Income

93,957.37 65,997.52 66,112.09 52,207.26

Profit Before Finance costs, Tax, Depreciation and Amortization (after adjusting Other Comprehensive Income)

15,525.37 10,797.68 10,633.93 10,168.47

Profit Before Tax (after adjusting Other Comprehensive Income)

10,950.88 8,377.46 7,222.04 8,135.45

Profit After Tax (after adjusting Other Comprehensive Income)

7,998.72 5,769.52 5,443.04 6,215.08

Total Assets

89,124.77 75,979.03 77,749.82 65,717.12

Equity Share Capital

1,365.31 1,365.31 1,365.31 1,365.31

Other Equity

31,304.32 23,987.53 31,527.19 26,766.80

Non-controlling interest

13.26 8.4 - -

Total Equity

32,682.89 25,361.24 32,892.50 28,132.11

Bank Borrowings

23,296.31 18,553.33 22,680.45 18,003.15

Debt: Equity Ratio (including long term and short term borrowings)

0.76 0.82 0.73 0.72

Book Value per Equity Share of Rs. 2 each - In Rs. Earnings per Equity Share - Basic and Diluted - In Rs.

47.88 37.15 48.18 41.21

Earnings per Share - From Continuing operations

10.37 8.89 8.12 9.4

Earnings per Share - From Discontinuing operations

(0.15) (0.36) (0.15) (0.36)

Dividend Per Share - In Rs. (FY 2022-23 - proposed)

1.1 1 1.1 1

*Previous years figures are restated, regrouped, rearranged and recast, wherever considered necessary.

The Company completed the acquisition of 100% shareholding in Thaletec GmbH, Germany on 17th December, 2021 and the financial information includes the performance of Thaletec GmbH and its wholly owned subsidiary Thaletec Inc., USA for the period commencing from that date.

The Company continues to retain its position as the market leader in the filtration and drying segment. HGLs Balance Sheet continues to remain robust and relatively insulated from financial risks. By continuously working on various measures to optimize net material costs other operational / manufacturing costs, working capital cycle, the Company has sustained its growth trajectory and achieved significant cost savings. The Companys standalone revenue from operations for the year 202223 was Rs. 64,946.44 lakhs compared to Rs. 50,848.93 lakhs during 2021-22. Similarly, the Companys consolidated revenue from operations for the year 2022-23 was Rs.93,152.21 lakhs compared to Rs. 65,221.82 lakhs during 2021-22.

> Consolidated Segment-wise Performance

The Company has two main segment of operations (i) Filtration, Drying and Other Equipment and (ii) Glass Lined Equipment

(Rs. in Lakhs)

Particulars

FY 2022-23 FY 2021-22*

Revenue

a) Filtration, Drying and Other Equipment

34,420.92 31,410.57

b) Glass Lined Equipment

57,855.68 33,002.59

c) Others

875.61 808.66

EBIT

a) Filtration, Drying and Other Equipment

4,442.90 4,609.29

b) Glass Lined Equipment

7,792.94 7,055.58

* Previous years figures are restated, regrouped, rearranged and recast, wherever considered necessary.

The Company completed the acquisition of 100% shareholding in Thaletec GmbH, Germany on December 17, 2021 and the financial information includes the performance of Thaletec GmbH and its wholly owned subsidiary Thaletec Inc., USA for the period commencing from that date.

> Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore

Key Financial Ratios

FY 2022-23 FY 2021-22

Detailed explanation for change of 25% or more, if any

Debtors Turnover (times)

5.11 6.97

Due to higher sales in Q4 FY 22-23

Inventory Turnover (times)

3.45 3.05

Interest Coverage Ratio (times)

4.35 8.2

Due to higher utilization of working capital borrowings as a result of higher operations and the full year impact of the borrowings to finance the Thaletec acquisition.

Current Ratio

1.25 1.34

Debt Equity Ratio (considering long term and short term debt)

0.73 0.72

Operating Profit Margin (%)

14.44 18.13

Net Profit Margin (%)

8.38 12.15

Due to higher raw material costs, interest, depreciation and overheads and also consolidation of financials of the German subsidiary which has comparatively lower margins.

> Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a

detailed explanation thereof

Key Financial Ratios

FY 2022-23 FY 2021-22

Detailed explanation for change of 25% or more, if any

Return on Net Worth (PAT/ Net Worth) - Standalone

17.84 27.70%

Due to equity being raised at premium during 2021-22 and PAT for 2022-23 being low owing to higher raw material costs, interest, depreciation and overheads.

B. Opportunities and Threats

The Company is constantly endeavouring to service its customers with superior quality products at reasonable prices, backed by continuous innovation of processes, use of latest technology and product diversification. The Company has been proactively investing to improve its product development capabilities, technology advancement, infrastructure and supply chain management, enabling HGL to not only scale its capacities and improve operational and cost efficiencies but also to expand its reach across domestic and export markets. These factors hold the Company in good stead to grow sustainably in the foreseeable future, with constant demand coming from the downstream engineering service, pharmaceutical and chemical sector. The position of HGL as one of the front runners in the sector positions the Company to make the most of the sectoral tailwinds.

The threats: the Company is traditionally associated with is the cyclical industry trend, rising inflation, increasing material costs due to the global geopolitical scenario, non-availability of adequate skilled manpower, continuous increase in electricity/ fuel costs, cost of wages and salaries and increase in financing costs. On the upside, a stronger boost from pent-up demand in numerous economies or a faster fall in inflation is plausible. On the downside, severe health outcomes in China could hold back the recovery, Russias war in Ukraine could escalate and tighter global financing costs could worsen debt distress. Financial markets could also suddenly reprice in response to adverse inflation news, while further geopolitical fragmentation could hamper economic progress.

There is a strong brand recall associated with the Company. Further, the Company has been reinforcing its brand recall by intensifying its marketing efforts and service network, which is validated by the strong presence of the Company in both domestic and international markets. The management is confident of overcoming the internal threats and ensuring the Company growth sustenance in the current year.

C. Risks and Concerns

The overall risk landscape of the past few years has proven complex for the Company. However, the resilience shown by the Company against the backdrop of such challenges is remarkable. The plans developed, implemented and executed during the pandemic and in its wake are now far more resilient. However, the fiscal 2022-23 was marked by several other risks requiring plenty of preparation and proactive and reactive threat management.

ESG (Environmental, Social, and Governance) reporting is in its infancy but the requirements will be broader and

all-encompassing. Therefore, a lack of preparedness could be a threat. Organizations should ensure governance structures to provide reliable information on ESG risks and opportunities. The Company has focused on defined ESG disclosures and metrics and identifying the data to be captured and curated to comply with local ESG regulations on time.

Identifying risks is only one part of the scenario. Mitigating them is more crucial to ensure business continuity and sustenance. The Company focuses on systemic risks that create vulnerabilities and ensure that its risk management provides oversight of such risks. Systemic risk is a type of risk which at a company- or industry-level could trigger a huge collapse. Systemic risk is hard to quantify and harder to predict. Managements risk appetite should be updated to provide clarity in decision-making. The Company is also focused on understanding ESG risks and supporting the design and development of robust governance frameworks and control environments.

Risk Management

The Company is cognizant of the pivotal role played by risk management to ensure long-term business growth and sustenance. Pursuant to provisions of Regulation 17 and 21 of the SEBI Regulations (the SEBI Listing Regulations) and Sections 134 and 177 of the Companies Act, 2013 (the Act) and other applicable provisions, if any, of the SEBI Listing Regulations and the Act, the Board of Directors of the Company has approved and framed the Risk Management Policy of the Company, which is available on the website of the Company i.e. https:// hleglascoat.com/wp-content/uploads/2021/09/HGL_ RISK-MANAGEMENT-POLICY.pdf

The Risk Management Policy of the Company has a detailed risk identification, assessment and mitigation procedure for all risks faced by HGL. The Risk Management Policy adopted by the Company establishes a structured and disciplined approach to Risk Management, in order to guide the Board on decisions on risk-related issues and to mitigate various risks such as economic risk, geopolitical risk, production risk, price risk, inventory management risk, technology risk, competition risk, financial risk, raw material price fluctuation risk, pandemic risk, human resource risk, reputation risk, legal risk, regulatory risk, cyber risk, among others. The main objective of this Policy is to ensure sustainable business growth with stability and to promote a proactive approach in reporting, evaluating and resolving risks associated with the Companys business and processes. The Company has also formed the Risk Management Committee comprising certain Directors. The Risk Management Committee is tasked with identification

and mitigation of risks, which is further supervised by the Board of Directors.

D. Internal Control Systems and their adequacy

The Company is committed to ensuring an effective internal control environment that provides reasonable assurance regarding the effectiveness and efficiency of operations, adequacy of safeguarding of assets, reliability of financial controls and compliance with applicable laws and regulations. Towards this end, HGL has laid down standard operating procedures and policies to guide the various business operations. To further strengthen the internal control systems, independent external professional agencies have been appointed to conduct internal audit of the systems and processes of its manufacturing locations (Maroli, Anand and Silvassa). The internal auditors ensure that internal controls are reviewed through the periodical internal audit process in consultation with the Audit Committee. Internal auditors cover every operational unit and all major corporate functions under the guidance of the Audit Committee of the Board.

The Boards Audit Committee oversees the adequacy of the internal control environment through periodic reviews of audit findings and monitoring implementations of internal audit recommendations through compliance reports. The statutory auditors have opined in their report that there are adequate internal controls over financial reporting at the Company. The Certification by the Managing Director and the Chief Financial Officer of the Company has been provided elsewhere in this Annual Report and discusses the adequacy of the internal control systems and procedures.

E. Human Resources

Operating in the manufacturing sector, the Company understands the importance of human capital and knows that employees form the backbone of the Companys success. The Company has robust HR policies in place, promoting transparency, ethics and inclusive growth of the employees. The Company is constantly endeavouring to strengthen its HR processes to stay ahead of the curve at all times. The strength of the HR processes of the Company are validated by its ability to attract and recruit the best talent in the industry, ensure strong learning and development with equal emphasis on safety trainings, proactive employee engagement and strong employee retention.

Such processes have not only increased efficiencies of the employees but also helped them grow alongside the Company. The Company believes in focusing on development of its existing staff and workers and provides constant training to them to equip them to take on better and senior positions. The training is provided internally and training programs are also organized by inviting external faculty. Our continuous training programs lay emphasis not only on increasing productivity but also on imbibing qualities of commitment and integrity in the attitude and behavior of the employees.

The Company has well-documented and updated policies in place to prevent any kind of discrimination and harassment including sexual harassment. The Whistle Blower Policy plays an important role as a watchdog. The total employee strength of the Company as on March 31, 2023 stands at 728.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations, if any, may be “forward looking statements” within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include among others, raw material pricing, climatic conditions, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.

By the Order of the Board of HLE Glascoat Limited

Sd/-

Himanshu Patel

Managing Director (DIN: 00202312)

Sd/-

Aalap Patel

Place : Maroli

Executive Director

Date: May 29, 2023

(DIN:06858672)

ANNEXURE-VIII TO THE BOARDS REPORT DETAILS RELATED TO CORPORATE SOCIAL RESPONSIBILITY [CSR] OF THE COMPANY FOR THE FINANCIAL YEAR 2022-23

1. Brief outline on CSR Policy of the Company

The Company believes in enriching Society and the surrounding environment and it has accordingly formulated a policy related to CSR and the CSR Policy is available on the Companys website: www.hleglascoat.com in the Corporate Social Responsibility section. The website also provides details related to the Composition of the CSR Committee and the CSR activity.

The following are the areas of emphasis for CSR activities under the CSR Policy:

a. The activities carried out under this CSR policy will be in the areas as per Schedule VII to the Companies Act, 2013.

b. These activities will be carried out directly and through implementing agencies.

c. Surplus arising out of the CSR Projects/ programs/ activities, if any, shall not form part of business profits.

2. Composition of CSR Committee:

Sl.

No.

Name of Director

Designation / Nature of Directorship

Number of meetings of CSR Committee held during the year Number of meetings of CSR Committee attended during the year

1

Mr. Sandeep Randery

Chairperson/Independent Director

4 4

2

Ms. Vijayanti Punjabi

Member/Independent Director

4 4

3

Mr. Aalap Patel

Member/Executive Director

4 3

3. Web-link(s) where the Composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on the website of the Company:

The CSR activities undertaken are within the broad framework of Schedule VII of the Companies Act, 2013. Details of the CSR Committee composition, CSR Policy and projects/ programmes undertaken by the Company along with the implementing agencies/ partners are available on links given below:

(i) CSR Committee Composition and CSR Policy: https://www.hleglascoat.com/csr/

(ii) CSR Projects programmes undertaken by the Company: https://www.hleglascoat.com/csr/

4. Details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report). None

5. (a) Average net profit of the Company as per section 135(5): Rs. 6,890.09 lakhs

(b) Two percent of average net profit of the Company as per section 135(5): Rs. 137.80 lakhs

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: -

(d) Amount required to be set off for the financial year, if any: Rs. 9.40 lakhs

(e) Total CSR obligation for the financial year (5b+5c-5d): Rs.128.40 lakhs

6. (a) Details of CSR amount spent against ongoing projects for the financial year:

(1) (2)

(3) (4) (5) (6) (7) (8) (9) (10) (11)

S. Name No. of the Project

Item from the list of activeties in Schedule VII to the Act Local Location of area the project (Yes/

No)

State Dist.

Project

Duration

Amount Allocated for the project (in Rs.) Amount spent in the current financial Year (in Rs.) Amount Transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.) Mode of Implementation - Direct (Yes/No) Mode of Implementation Through Implementing Agency

Name CSR

Registration

number

N.A.

(b) Details of CSR amount spent against other than ongoing projects for the financial year:

(1)

(2)

(3)

(4) (5) (6) (7) (8)

S. No.

Name of the Project

Item from the list of active- ties in Schedule VII to the Act

Local area (Yes/

Location of the project

Amount spent in the current Mode of Implementation

Mode of Implementation- Through Implementing Agency

No) State Dist. financial Year (Rs. in Lakhs) - Direct (Yes/No) Name CSR Registration number

1.

AzadiKa AmritMahotsav

*Structure for National Flag

Yes Gujarat Surat 6.15 Yes - -

2.

Gram AavasYojna/ Low cost Housing Project Expense

*Eradicating hunger, poverty and malnutrition, *promoting education, art and culture, healthcare, destitute care and rehabilitation, * environment sustainability, disaster relief, COVID-19 relief and rural development projects

Yes Gujarat Surat 104.50 No Yashaswati Foundation CSR00003105

3.

Donation to Manray Foundation-Empowring Underprivileged Children

*Eradicating hunger, poverty and malnutrition, *promoting education, art and culture, healthcare, destitute care and rehabilitation, * environment sustainability, disaster relief, COVID-19 relief and rural development projects

Yes Gujarat Navsari 15.00 No Manray foundation

4.

Distribution of educational bookstitled “BIPLOB THE BUMBLEBE”,the worlds first ever Eco - Warrior Superheroon the conservation of the environment to public schools in association with Brihanmumbai Municipal Corporation

*promoting education, art and culture,

No Maharashtra Mumbai 12.75 Yes

Total

138.40

(c) Amount spent in Administrative Overheads: None

(d) Amount spent on Impact Assessment, if applicable: None

(e) Total amount spent for the Financial Year (6a+6b+6c): Rs. 138.40 lakhs

(f) CSR amount spent or unspent for the financial year:

Total Amount Spent

Amount Unspent (in Rs.)

for the Financial Year (in Rs.)

Total Amount transferred to Unspent CSR Account as per Section 135(6)

Amount transferred to any fund specified under Schedule VII as per second proviso to Section 135(5)

Amount Date of transfer

Name of the Fund Amount Date of transfer

Rs.138.40 lakhs

N.A. N.A.

N.A.

(g) Excess amount for set off, if any:

Sl. Particular Amount (Rs. in lakhs)

No.
(i) Two percent of average net profit of the Company as per section 135(5) 137.80
(ii) Total amount spent for the Financial Year 138.40
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.60
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial --
years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.60

7. (a) Details of Unspent CSR amount for the preceding three financial years:

Sl.

No.

Preceding

Financial

Year

Amount transferred to Unspent CSR Account under section 135(6) (in Rs.)

Balance amount in Unspent CSR Account under section 135(6) (in Rs.) Amount spent in the reporting Financial Year (in Rs.) Amount transferred to any fund specified under Schedule VII as per section 135(6), if any Amount remaining to be spent in succeeding financial years (in Rs.) Deficiency if any
Name Amount Date of of the (in Rs.) transfer Fund

Nil

8. Whether any capital asset have been created or acquired through CSR spent in the financial year: N.A.

9. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per section 135(5): N.A.

Sd/-

By the Order of the Board of For HLE Glascoat Limited

Sd/-

Sandeep Randery

Himanshu Patel

Date : May 29, 2023 Place : Maroli

Chairperson- CSR Committee

Managing Director

(DIN: 07663581)

(DIN: 00202312)

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RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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