Dear Shareholders,
On behalf of my Colleagues on the Board and myself, it gives me great
pleasure to extend a warm welcome and sincere gratitude to all the shareholders of the
Company. It is my pleasure to present to you the Annual Report for the FY 2022-23 of your
company. This 62nd Annual Report of your company, includes the Audited Annual
Accounts, Director's Report and Auditor's Report along with the C&AG
Non-Review Certificate for the 2022-23. Further, the 62nd AGM Notice includes the Business
items to be considered by the shareholders for approval at the 62nd AGM scheduled to be
held on Tuesday, 26th September, 2023.
PERFORMANCE
It gives me immense pleasure to place before you the highlights of your
Company's performance during the FY 2022-23. Details of the achievements and
initiatives taken by your company are provided in Directors Report.
Speaking in terms of financials, during the year 2022-23, your company
has achieved a Gross Income of Rs.642.98 crore registering an increase of 72.33% as
against the previous year Gross Income of Rs.465.10 crore.
HOCL has only one functioning unit located at Ambalamugal, Dist
Ernakulam in the state of Kerala which is commonly known as Kochi Unit. The Kochi unit is
engaged in manufacture of Phenol, Acetone and Hydrogen Peroxide. In Kochi Unit Phenol and
Hydrogen Peroxide Plants are operational. Capacity utilization of main products (Phenol
and Acetone) of Kochi Unit has improved substantially during the year. The Phenol Plant
achieved a capacity utilization of 93% and Hydrogen Peroxide plant achieved a capacity
utilization of 99% during the year.
OUTLOOK FOR THE NEXT YEAR
It is expected that expedition of the land sale process will reduce the
financial liabilities and thus bring down the finance costs. Your Company will also
explore the into value added products to maximum extent possible so as to gain some level
of protection against swings in the market prices.
Your Company will continue to be vigilant and will capitalize on the
opportunities that arise as a result of swift transformation in the industry landscape.
CORPORATE SOCIAL RESPONSIBILITY
Company since its inception is very much aware about its social
responsibilities. For over five decades, as a socially responsible and sensitive
corporate, your Company continues to remain committed to social thought and action to
serve society through providing basic civic amenities to the neighbouring villages and
rendering assistance in different forms.
Your company is not required to carry out any CSR activities on account
of losses incurred during the previous years. However, the company has recognized its
social obligations and carried out activities benefiting the society during the year under
review. The details of the activities undertaken by the company under CSR is given in the
Directors Report.
Swachh Bharat Abhiyan is given utmost importance by the company. Your
company conducted various activities in connection with Swachhta Pakhwada 2022 and the
details are given in the Directors report.
As a part of Azadi ka Amrit Mahotsav, your company conducted various
cleaning activities in its premises, stickers were prepared on Azadi ka Amrit Mahotsav and
pasted in all official correspondences.
Under the aegis of "Har GharTiranga" distributed Indian
National Flag to all employees, local residents, nearby Residents Association etc.
As part of Yoga Day on 21st June 2022, Common Yoga Protocols were
widely circulated for the information of all employees through our portal and social
media. Employees have participated in the live session of Yoga from 7.00 AM to 7.50 AM
along with Live streaming of the Yoga by the Hon'ble Prime Minister.
SAFETY, HEALTH AND ENVIRONMENT
In the areas of Health, Hygiene and Environment, the company has
undertaken periodic medical examination, as well as statutory requirements of fitness
check-up were carried out during the year 2022 for our employees. Audiometry tests were
carried out for those who are exposed with Noise and Autotoxicity tests were carried out
for the Benzene handlers apart from other statutory regular check-ups. Periodic awareness
session on Hygiene, Healthy living, Covid precautions and guidelines were imparted. In our
commitment to Environment, we have ensured that the level of pollutants from the Factory
and nearby surroundings was much below the permissible levels.
As part of protecting the environment, awareness sessions,
competitions, Swachh Bharat activities, promoting employees for vegetable cultivation
under a "Green Mission", Beautification of the plant premises involving the
entire employees of the organization were carried out. On-line Effluent Monitoring and
stack monitoring system is implemented to comply with the Central Pollution Control Board
regulations. Periodic inspections and safety walk were carried out by the Safety Committee
members in addition to the daily patrolling of Fire crew as a continual improvement Your
Company bagged "First Prize in Kerala State Industrial Safety Award 2022" from
the Department of Factories and Boilers, Government of Kerala and received
"SurakshaPuraskar Award 2022" for the 4th consecutive year
from M/s. National Safety
Council, Kochi Chapter.
ISO CERTIFICATION
As part of the safety improvements, many positive measures have been
undertaken by the organization to ensure safety of the plant and personnel. HOCL is an IMS
(Integrated Management System) certified organisation comprising of Quality Management
System (ISO-9001), Environment Management System (ISO-14001) and Occupational Health and
Safety Management System (ISO 45001). Company is also certified for Energy Management
System (ISO-50001). This gives more importance to the safety and health aspects.
INDUSTRIAL RELATIONS
People have been a great strength in your company. The overall
Industrial relationship continued to be peaceful and cordial during the year and no strike
or lockout took place during the year.
CORPORATE GOVERNANCE
The Company continued to comply with the various requirement of
Corporate
Governance. The details in this regard form part of the Directors
Report.
Company has substantially complied with the Guidelines on Corporate
Governance for CPSEs laid down by Department of Public Enterprises and regularly submits
reports to the Government. Company also complies with the applicable regulations of SEBI
(Listing Obligation and Disclosure Requirements) Regulations, 2015
HINDUSTAN FLUOROCARBONS LIMITED (HFL) – SUBSIDIARY COMPANY
Your company has one subsidiary company namely; Hindustan Fluorocarbons
Limited
[HFL]. Ministry of Chemicals and Fertilizers, Department of Chemicals
& Petrochemicals vide No. P. 51015/06/2019-Ch. III dated 29-01-2020 informed the
decision of Cabinet Committee on Economic Affairs [CCEA], directing closure of Hindustan
Fluorocarbons Limited and the same was approved by the shareholders of HFL.
Consequent to the decision of the Govt. of India for closure of
subsidiary company
Hindustan Fluorocarbons Ltd., an amount of Rs.75.87 crore has been
released to the Subsidiary Company as interest free loan from Govt. of India to meet the
expenses related to VRS/VSS to employees and settling dues to bank and other liabilities.
During
March 2023, Sale of Plant & Machinery and other movable assets was
done through MSTC e-Auction, as per decision taken by CCEA and executed as per DPE
guidelines. The sale proceeds were received and the same was deposited in a separate bank
account with State Bank of India. The sale of land is subject to receipt of NOC from
Telangana Govt.
ACKNOWLEDGEMENT
I take this opportunity to place on record my sincere appreciation and
gratitude to all the employees and other stakeholders who had extended their support and
co-operation during the year. I take this opportunity to acknowledge the support of my
fellow Board members and the senior management team. In particular, I am grateful to
various officials of the Government, especially Department of Chemicals and
Petrochemicals, Ministry of
Chemicals & Fertilizers, Department of Public Enterprises, Ministry
of Finance, Ministry of Commerce & Industry, Government of Maharashtra, Kerala
Government, all Bankers, Board Members, Statutory/Govt. Auditors, Cost Auditors and all
the agencies concerned.
My gratitude is also to the shareholders, and customers, who have
helped us in the present phase of transformation of the company.
We on our part would continue our efforts for completion of the
restructuring plan at the earliest, in our endeavour, towards the path of achieving early
turnaround of the company. We look forward to your continued support in this continuing
process.
Sd/-Sajeev B
Chairman and Managing Director DIN: 09344438