HEG AR 2015-16_AGM Notice and Addendum to Notice

154 Pages·2016·2.62 MB·English

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HEG Limited
Annual Report 2015-16
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Registered Office:
Mandideep (Near Bhopal) A
Distt. Raisen - 462046, Madhya Pradesh, India
Website: www.hegltd.com/www.lnjbhilwara.com
E-mail: [email protected]
CIN No. L23109MP1972PLC008290
CORPORATE INFORMATION
Chairman-Emeritus Bankers Stock Exchanges where the
828 129 182
L. N. Jhunjhunwala State Bank of India Company’s shares are listed:
Punjab National Bank BSE Ltd.
Board of Directors
Revenues, FY 2015-16 EBIDTA, FY 2015-16 Free cash flow generation, National Stock Exchange of India Ltd.
(H crore) (H crore) FY 2015-16 (H crore) Ravi Jhunjhunwala, HDFC Bank Ltd.
Corporate Office
Chairman, Managing Director & CEO IDBI Bank Ltd.
Bhilwara Towers, A-12, Sector-1
Shekhar Agarwal, Vice-Chairman Kotak Mahindra Bank Ltd.
Noida - 201301, U.P., India
D. N. Davar, Director DBS Bank Ltd.
Phone: [phone]
Kamal Gupta, Director Axis Bank Ltd. Fax: [phone]
Vinita Singhania, Director YES Bank Website: www.hegltd.com
E-mail: [email protected]
923 559 0.28 S. N. Bhattacharya, Director ICICI Bank Ltd.
O. P. Bahl, Director Auditors Registered Office
Mandideep (Near Bhopal)
Satish Chand Mehta, Director# Doogar & Associates
Networth as on Market capitalisation as on Debt-equity ratio as on Dist. Raisen - 462046
March 31, 2016 (H crore) March 31, 2016 (H crore) March 31, 2016 Riju Jhunjhunwala, Director S. S. Kothari Mehta & Co.
Madhya Pradesh, India
D. S. Ravindra Raju, Executive Director## Registrar & Share Transfer Phone: [phone] to 233527
Agent
Fax: [phone]
Chief Financial Officer
M/s. MCS Share Transfer Agent Ltd.,
CIN No.: L23109MP1972PLC008290
Raju Rustogi
F-65, First Floor,
Works
Okhla Industrial Area, Phase-I
Chief Human Resource Officer
Graphite Electrode &
New Delhi – 110020
T. Dev Joshi
231 Thermal Power Plants
Phone: [phone]
Mandideep (Near Bhopal)
Vice President - Marketing Fax: [phone]
Distt. Raisen - 462046
Manish Gulati E-mail:[email protected]
Book value per share as on Madhya Pradesh, India
March 31, 2016 (H) Company Secretary Phone: [phone] to 233527
Ashish Sabharwal Fax: [phone]
Hydro Electric Power
Village Ranipur, Tawa Nagar
Distt. Hoshangabad - 461001
Madhya Pradesh, India
Phone: [phone], 272859
Fax: [phone]
# Appointed w.e.f. 23rd June, 2016
4 6 8 ## Appointed w.e.f. 27th May, 2016
Corporate snapshot Financial progress From the Chairman’s desk
CAUTIONARY STATEMENT
10 Competitive advantages 12 Management 20 Corporate social responsiblity
discussion and analysis STATEMENTS IN THIS DOCUMENT THAT ARE NOT HISTORICAL FACTS ARE ‘FORWARD-LOOKING’ STATEMENTS. THESE ‘FORWARD-LOOKING’ STATEMENTS
MAY INCLUDE THE COMPANY’S OBJECTIVES, STRATEGIES, INTENTIONS, PROJECTIONS, EXPECTATIONS, AND ASSUMPTIONS REGARDING THE BUSINESS
AND THE MARKETS IN WHICH THE COMPANY OPERATES. THE STATEMENTS ARE BASED ON INFORMATION WHICH IS CURRENTLY AVAILABLE TO US, AND
21 Directors’ 47 Corporate 59
Financial section THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THESE STATEMENTS AS CIRCUMSTANCES CHANGE. THERE MAY BE A MATERIAL DIFFERENCE
Report Governance Report
BETWEEN ACTUAL RESULTS AND THOSE EXPRESSED HEREIN. THE RISKS, UNCERTAINTIES AND IMPORTANT FACTORS THAT COULD INFLUENCE THE
COMPANY’S OPERATIONS AND BUSINESS ARE THE GLOBAL AND DOMESTIC ECONOMIC CONDITIONS, THE MARKET DEMAND AND SUPPLY FOR PRODUCTS,
PRICE FLUCTUATIONS, CURRENCY AND MARKET FLUCTUATIONS, CHANGES IN THE GOVERNMENT’S REGULATIONS, STATUTES AND TAX REGIMES, AND
OTHER FACTORS NOT SPECIFICALLY MENTIONED HEREIN BUT THOSE THAT ARE COMMON TO THE INDUSTRY.
Fiscal 2015-16 was the most
challenging in recent history for
the global graphite electrodes
industry.
The steel industry faced excessive
capacity surplus, reduced
steel demand coupled with
an onslaught by Chinese steel
exports.
The EAF based steel industry
struggled to compete with BOF
steel due to a drop in iron ore
and coal prices vis-à-vis scrap
prices. Making BOF steel more
cost-competitive compared to
EAF steel.
The above resulted in reduced
graphite electrode demand
globally with all major global
graphite electrode leaders
reporting sizable losses.
HEG reported a relatively
marginal loss emphasising
its position as a competitive
graphite electrode
manufacturers in the world.
HHeEgG LLiimmiitteedd Annual Report 2015-16
Being one of the leaders
in the Industry is never
enough…
…for there is always
something more to be
achieved.
IT WOULD HAVE BEEN EASY TO DISMISS A DISHEARTENED
PERFORMANCE TO DEPRESSED EXTERNAL CONDITIONS.
At HEG, we selected to strengthen operation) leading to customised
our operations through diverse output and timely delivery.
initiatives instead.
Generated free cash flow of H182
Streamlined operations to reduce crore, which helped in reducing
wastages by about 50% of our equivalent debt during the year.
earlier benchmark.
Mobilised lower-cost commercial
Invested in operational paper over conventional
automation; procured alternatives to address short-term
productivity-enhancing fund requirements.
equipment; invested in intellectual
Addressed new geographies and
capital to enhance man-machine
customers.
productivity.
Initiated developing graphite
Introduced the coveted
products (referred to as
machining chain technology in
specialities) with applications
India and enhanced customer
in diverse sectors (chemicals,
delight.
urban infrastructure and heat
Maintained adequate connecting exchangers).
pin inventory (a time-consuming
The result is that we are more future-ready than ever before and we de-
risked our business from an excessive dependence on any one product.
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01-07 08-20 21-58 59-130
Corporate Overview Management Review Statutory Reports Financial Statements
182
FREE CASH FLOW
GENERATED IN 2015-16
H
( crore)
33
HHeEgG LLiimmiitteedd Annual Report 2015-16
HEG Limited.
With a passion to ‘Go beyond’
With the determination to ‘Challenge the odds’
With a resolve that ‘Yes, we can!’
Vision Snapshot
HEG LIMITED IS INDIA’S
A VIBRANT GLOBALLY-ACKNOWLEDGED
LEADING GRAPHITE ELECTRODE
TOP LEAGUE PLAYER IN GRAPHITE
ELECTRODES AND ALLIED BUSINESS MANUFACTURER.
WITH COMMITMENT TO GROWTH, With the capacity of 80,000
INNOVATION, QUALITY AND CUSTOMER MT per annum, it is the largest
FOCUS. single-location Graphite
Electrode plant. The facility at
Mandideep (Madhya Pradesh)
is certified as a ISO 9001:2008,
ISO 14001:2015 and OHSAS
18000:2007.
The Company has three captive
Mission power generating facilities
to address its entire power
TO BECOME A LEADING INTERNATIONAL requirement.
PLAYER IN GRAPHITE ELECTRODES
The Company enjoys a global
AND ALLIED BUSINESS BY LEVERAGING
marketing presence in more
OUR CORE COMPETENCE AND
than 30 countries.
THEREBY ENHANCING VALUE TO
OUR CUSTOMERS, SHAREHOLDERS, The Company’s shares are listed
EMPLOYEES AND SOCIETY. on BSE Limited and National
Stock Exchange of India Limited.
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01-07 08-20 21-58 59-130
Corporate Overview Management Review Statutory Reports Financial Statements
Key customers
OPERATIONAL INFORMATION
Graphite electrode capacity: 80,000 tonnes per annum
Power generating capacity: 76.5 MW
Team: 1,000+ members
Client base: 100+ customers globally
SHAREHOLDER INFORMATION
Face value per share: H10
Market capitalisation: H559 crore
Net worth: H923 crore
Promoters’ holding: 58.79%
BSE code: 509631
NSE code: HEG
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HHeEgG LLiimmiitteedd Annual Report 2015-16
Maybe down now.
But will be the fastest to rebound!
Net revenue (H crore) EBIDTA (H crore) Profit after tax (H crore) Earnings per share (H)
4 7 9 3 8 9 7 8 7 9 2 6 7 9 5 4 8 8 6 9
2 1 5 3 2 5 0 6 9 2 6 0 8 3 1 3 4 6 7 7
1,4 1,6 1,4 1,2 8 2 3 2 1 1 1 15. 15. 26. 21. 9. -3.
-
11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16
66
01-07 08-20 21-58 59-130
Corporate Overview Management Review Statutory Reports Financial Statements
Book value per share (H) Net worth (H crore) Gross block (H crore) Debt-equity ratio
1 6 1 5 1 2 3 4 1 3 7 1 9 8 2 3 3 9 6 8
9 1 3 3 3 6 6 2 4 2 7 1 9 3 4 6 6 3 3 2
1 2 2 2 2 7 8 9 9 9 1,1 1,2 1,4 1,5 1,6 0. 0. 0. 0. 0.
11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16 11-12 12-13 13-14 14-15 15-16
77
HHeEgG LLiimmiitteedd Annual Report 2015-16
From the Chairman’s desk
The art of
survival...
and how we lived
to tell the story.
For the graphite electrode industry, 2015-
16 was the most challenging in history.
However, the financial year under review
was the most enriching for us.
When the customer turned hesitant, we
learnt what it means to find new ones.
When sectors turned sluggish, we created
new products to address others.
When prices nosedived, we pruned costs
to maintain viability.
The result is that, in a year when most
global graphite electrode manufacturers
encountered substantial losses leading to
closure, we remained steadfast despite
reporting marginal losses.
This vindicates our long-term positioning
to emerge as the last man standing in our
space the world over.
Subdued business environment
Steel sector: Global crude steel produc-
tion for 2015 declined by 2.8% (Source:
World Steel Association). Players across
the world registered negative growth; in
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