I extend my hearty welcome to all members to the 41st Annual General Meeting
of your Company. We are again meeting virtually in the AGM as the Government authorities
and/regulatory bodies have permitted holding of AGM through Video Conference (VC) mode. It
gives immense pleasure to connect with you all, although through VC. I am sure, you must
have received the Annual Report of the Company for the year ended 31st March,
2024 comprising Notice of AGM, Director's Report, audited Financial Statements etc. and
with your permission I take them as read.
Now, I proceed to share with you briefly the activities of your Company.
1. CCEA APPROVAL
The company had received letter from Ministry of Chemicals and Fertilizers, Department
of Chemicals and Petrochemicals vide File.No.9- 5101506/2019-Ch.III dated 29th
January, 2020 informing the decision of Cabinet Committee on Economic Affairs (CCEA)
directing closure and shutting of operations of HFL.
2. SHUTTING OF OPERATIONS
Pursuant to CCEA directions for Closure of HFL, all production activities of HFL has
been shut/completed as on 31st March, 2021. In view of this, there were no
production & sales during the year under review. The activities during the year under
review were towards the implementation of the CCEA directions.
3. SALE/DISPOSAL OF HFL FREEHOLDLAND
Pursuant to CCEA directions for Closure of HFL, approval from shareholders for the sale
of 126 acres of the company's land on ‘as and where is basis' was obtained on 28th
July, 2020. The sale of land is subject to receipt of NOC from TSIDC/TS Govt.
4. PLANT AND MACHINERY AND OTHER MOVABLE ASSETS
Pursuant to CCEA directions for Closure of HFL, approval from shareholders for the sale
of plant and machinery and other immovable assets of the company was obtained on 28th
July, 2020. During March 2023, Sale of Plant & Machinery and other movable
assets was done through MSTC e-Auction, as per decision taken by CCEA on 22nd
January, 2020 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.
5. RECEIPT OF GOI INTEREST FREE LOAN
HFL had received interest free loan of Rs.73.70 crore from GoI on 26th May,
2020 and Rs.2.17 Crore from GoI on 15th March, 2022 totalling to Rs.75.87
crores. As per GoI order HFL has to utilize funds for payment of liabilities viz. VRS/ VSS
to existing employees, Clearing liabilities of Ex-employees, Statutory dues and secured/
unsecured creditors, etc. related to shutting down of plant/unit of HFL as per CCEA
decision dated 22nd January, 2020.
6. VRS
The VRS-2020 scheme was implemented by the company, accordingly 65 employees were
relieved on VRS-2020 scheme; 16 employees got superannuated; 3 employees resigned and
remaining 5 employees were transferred to Hindustan Organic Chemicals Limited (HOCL)
during September, 2022.
The VRS sums paid to employees towards VRS/VSS and arrears to retired employees etc.
are made after audit by an Independent auditor, Internal Auditor and Statutory Auditor.
Further, as directed VRS payments are made as per DPE guidelines and same are also
verified by DCPC, MoC&F.
7. CORPORATE GOVERNANCE
Your Company lays emphasis in conducting its affairs within the frame work of policies
and guidelines set by the Government in a transparent manner. It is the endeavor of the
Company to build trust between shareholders, employees & customers based on the basic
principles of Corporate Governance. The detailed Report on the Corporate Governance as
well as Management Discussion Analysis Report is forming part of the Director's report.
This Report analyses in brief the potentialities of the Company as well as the focus of
the Company's business. Your company had generally complied with Corporate Governance
Guidelines issued by Department of Public Enterprises.
8. ACKNOWLEDGEMENTS
I place on record my appreciation and gratitude to everyone who had extended their
support and co-operation during the year. In particular,
I am grateful to various officials of the Govt of India especially from the Ministry of
Chemicals & Fertilizers, Department of Chemicals and Petrochemicals, the Finance
Ministry, Govt. of Telangana, Department of Public Enterprises, Promoter Company i.e. HOCL
and all Board Members. I would like to convey my sincere appreciation to Statutory Bodies,
Investors, our bakers State Bank of India, Statutory auditors, Internal auditors,
Secretarial auditors & CAG auditors for their continued support.
Sd/-
(SAJEEV B)
Chairman & Managing Director DIN:09344438
Date: 30.08.2024
Place: Kochi, Kerala