Your Board hereby presents the 63rd Annual Report and the
Audited Accounts for the year ended 31st March 2024.
1. OPERATING RESULTS
The Company's financial performance under review is summarized
below:
( in lakhs)
|
For the year ended |
| Particulars |
|
|
|
2023
– 24 |
2022
– 23 |
| Sales (Net of GST) |
7,722.51 |
9,253.80 |
| Other Operating Income |
91.26 |
29.10 |
|
7,813.77 |
9,282.90 |
| Other Income |
349.41 |
73.12 |
| Total Income |
8,163.18 |
9,356.02 |
| Profit / (Loss) before
Finance Cost, |
|
|
|
2,604.71 |
3,182.14 |
| Depreciation and Tax |
|
|
| Less: |
|
|
| Finance Cost |
196.41 |
314.76 |
| Depreciation |
97.26 |
118.62 |
|
293.67 |
433.38 |
| Profit/ Loss before |
2,311.04 |
2,748.76 |
| Less: |
|
|
| Provision for Taxation: |
|
|
| Current Tax |
579.24 |
769.67 |
| Deferred Tax |
15.93 |
(70.42) |
|
595.17 |
699.25 |
| Net Profit / (Loss) |
1,715.87 |
2,049.51 |
| Other Comprehensive Income |
20.55 |
(1.70) |
| Total Comprehensive
Income |
1,736.42 |
2,047.81 |
The Company recorded a turnover of 7813.77 lakhs in the year FY 2023
– 24, as compared to
9,282.90 lakhs, during the previous Financial Year 2022 – 23.
2. DEPOSITORY SYSTEM
The total number of shareholders as on March 31, 2024 was 18,442
comprising 89,63,840 shares (Face value of 2/- each) and out of those, 18,319
shareholders comprising 88,47,915 shares are held in Demat form representing 98.71% of the
total Equity Share Capital compared to 98.61% as on FY 2022 – 23.
3. DIVIDEND
Your Directors recommend a dividend of 150% ( 3/- (Rupees Three
only)) per equity share of
2/- each for the financial year ended 31st March 2024,
absorbing a sum of 268.92 lakhs, subject to the approval of shareholders at the ensuing
63rd Annual General Meeting.
4. PERFORMANCE REVIEW a. SILVER ZINC BATTERIES
The Company achieved a turnover of
7160.85 lakhs through Silver Zinc Battery supplies during the FY
2023-24, as against
8844.40 lakhs, during the FY 2022-23. b. NICKEL CADMIUM BATTERIES
During the year, the turnover of Nickel Cadmium Division was 561.66
lakhs, as against 409.40 lakhs during the previous year. Placement of orders by Air (HQ)
for Nickel Cadmium Batteries is based on annual consumption versus stock position and
hence the ordering cycle and order quantity, keeps varying.
The modernization goal of Railways including induction of long –
haul, high speed trains, calls for development cum supply of both sintered plate type
(high rate) and pocket plate type (medium rate) Nickel Cadmium (NICAD) batteries.
Discussions are in progress with reputed companies abroad, to establish local
manufacturing base, during FY 2024 – 25. c. LEAD ACID BATTERIES (LAB)
As reported earlier, Lead Acid Battery division operations remained
suspended since April, 2019 due to severe competition in the market resulting in
non-remunerative prices. Our efforts for revival of the Plant keeping in mind the
sustainability of the operations, has not yielded favorable results so far. d. EXPORTS
During the year, the export turnover was
40.14 lakhs and the export turnover was NIL in the last year. On
account of the on-going global conflicts and situation in the Middle
East, many of the governments have cut short their procurement budget.
All efforts are being made to secure export orders during the Current Year. e. COVID – 19 IMPACT
Owing to Covid pandemic and the consequent impact, the Company had to
face disruptions in supply chain and delays in receipt of imported materials, which
continues till date. f.
FINANCE
The financial position of the Company was comfortable during the year,
owing to our improved operations, supplemented by the support of our bankers, including
reduction in interest rates. Though the Company is categorized as MSME, payment from
Defence Departments gets delayed and bunched up due to issues pertaining to allocation of
internal funds by Ministry of Defence (MOD) / Govt of India (GOI). On such occasions, the
needed financial support was duly cognized and extended by our Bankers, to ensure smooth
and sustained operations of our plant. g. ISO 9001 / ISO 14001, OHSAS 45001 CERTIFICATION ACCREDITATION
Our Quality Management Systems "(QMS) ISO 9001:2015",
"Environmental Management Systems" (EMS) ISO 14001:2015 and OHSMS 45001: 2018
"Occupational Health and Safety Management Systems (OHSMS), continue to be accredited
for both "Aerospace, Naval Battery" and "Lead Acid Battery" Divisions.
5. R & D – CURRENT YEAR (2024 – 25) i. Underwater
propulsion Battery
(a) DRDO Program –
During the previous year, our R & D received orders from DRDO for the development cum
supply of two different types of batteries involving
Silver Zinc system of 270 kW power for Heavy Weight Torpedo (HWT) as
well as Silver Chloride Magnesium Sea Water Activated Battery for Light Weight Torpedo
(LWT) applications. The design of the Silver Zinc cells also had distinct constructional
features that will enable handling of cells to the minimum possible during battery
preparation. On similar lines, the Sea Water Battery is of a much higher power levels of
100 kW that can be catered to for a typical LWT requirement. Both the programs were
completed satisfactorily within the stipulated period of less than a year. Supply of
batteries is already effected, which will undergo sea firing user trials, leading to
clearance for regular production, during the FY 2024 – 25.
(b) OneShotBattery –Duringtheyear,ahigh-power
one-shot primary reserve battery using magnesium Cuprous Chloride (Mg - Cucl) system was
integrated at HEB with all the needed interface cum system requirements. The static
discharge test of the battery was carried out during November 2023. Performance of the
battery was found to be satisfactory and all the needed technical parameters were
generated during the test, in co-ordination with Indian Navy (IN) Personnel. Expect IN to
initiate a development cum supply program for this battery, during the FY 2024 – 25. ii. Long Life Sea Water Battery – Activities pertaining to the design, development cum
evaluation of long endurance Sea Water battery was initiated last year through DRDO funded
contract. It is progressing satisfactorily from the proto stage to the level of making
full size battery, to provide power for underwater monitoring instruments for over a year
continuously. This battery type is expected to get into production mode during FY 2024
– 25. iii. Energy related
Centre for High Technology (CHT) Programs
(a) A development program pertaining to Hydrogen economy, was initiated
last year funded by both Centre for High Technology (CHT) & ONGC Energy
Centre Trust (OECT) and with our participation. Based on the
satisfactory performance of the proto units, scaling up of the Hydrogen unit is in
progress and this project will get completed by FY 2024-25.
(b) On similar lines CHT had initiated another program, with IOCL and
GAIL as funding agencies and with our participation. The target of this two-year program
is to come up with a low power Fuel Cell (FC) stack, for Power Generation using Hydrogen
and Air. On this, optimization of membrane, the catalysts, catalyst loading and small size
1kW proto type stack evaluation are in progress. The Process flow and control parameters
for proto development is established and this program will be completed including the
testing cum evaluation of a scaled up 2.5 kW plus level unit, during the FY
2024 – 25. iv. Vanadium
based flow battery (VRFB)-
Energy Storage
Based on the satisfactory demonstration cum completion of the
development program with OECT on 1 kW / 10kWh module carried out in co-ordination
with IIT Chennai, OECT preferred to initiate the next level of funded program with our
participation. Main scope of the program involves scaling up of the system to 10 kW / 100
kWh rating and further evaluation, on stand-alone storage mode using Solar PV based energy
harness. Activities pertaining to this contract had started from March 2024 and the
proposed work will be pursued during the period FY 2024 – 25 & FY 2025 – 26.
v. Lithium-Ion Battery (LIB)
The facility for cell screening, making battery pack assembly and
testing as pack or battery on a low volume level using second life LIB packs, is now fully
established. We have made a number of standalone Solar PV based street lights which are
regularly monitored and evaluated at different locations at Mathur village. During FY 2024
– 25 this will be taken up on a regular production mode and also work on Lithium-Ion
Battery (LIB) for other applications including low power off-grid UPS systems is planned,
towards in-house development, testing and supply.
6. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A detailed discussion on the industry structure as well as on the
financial and operational performance is contained in the ‘Management Discussion and
Analysis Report' that forms an integral part of this Report – Annexure –
1.
7. CORPORATE GOVERNANCE
Pursuant to Regulation 34(3) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations 2015, Corporate Governance
Report together with the certificate Company's auditors
confirmingthe compliance of conditions on Corporate Governance is given in Annexure
– 2. The Corporate Governance Report also includes contents and disclosures
required under Section 134(3) of the Companies Act, 2013 at relevant places that forms an
integral part of this report.
8. EXTRACT OF ANNUAL RETURN
Pursuant to provisions of Section 92(3) of the Companies Act, 2013 read
with the Companies (Management and Administration) Rules, 2014, a copy of annual return
for FY 2023 – 24 will be placed on the website of the company www.highenergy.co.in
after conclusion of the 63rd AGM.
9. D I R E C T O R S ' R E S P O N S I B
I L I T Y STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013 with respect
to the Directors' Responsibility Statement, your
Board confirms that:
(a) in the preparation of the annual accounts, the applicable
Accounting Standards have been followed and there are no material departures from the
same.
(b) the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the Company, at the end of
the financial year and of the profit of the
Company for that period;
(c) the Directors have taken proper and
of adequate accounting records, in accordance with the provisions of
the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
(d) the Directors have prepared the annual accounts on a "going
concern" basis. (e) the Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are adequate and were
operating effectively.
(f) the Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are adequate and operating
effectively.
10. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
During the year, the Company did not avail or give any loan or
Guarantee or provide any security or make any investment, which are covered under Section
186 of the Companies Act, 2013.
11. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTY
The Company remains outside the purview of Section 188(1) read with
Rule 15 of Companies (Meeting of Board and its Powers) Rules, 2014, and the reporting
requirements thereunder are not applicable. since
12. MATERIAL CHANGES AND COMMITMENTS
There was no change in the nature of business of the Company during the
year. There is no material change or commitment affecting the business operations and the
financial position of the company since the close of the Financial Year as on 31st
March 2024, to the date of this Report.
13. CONSERVATION OF ENERGY
Information relating to Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo, as required under Section 134(3)(m) of the
Companies Act, 2013, read with Rule 8 (3) of the Companies (Accounts) Rules, 2014 is given
in Annexure – 3 that forms part of this report.
14. CORPORATE SOCIAL RESPONSIBILITY (CSR)
The company is covered under the mandate of Section 135 of the
Companies Act, 2013 for FY 2023 – 24. The CSR report in the prescribed form is given
in Annexure – 4 that forms part of this report.
15. PARTICULARS OF EMPLOYEES
The Statement of Disclosure of Remuneration under Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given in Annexure
– 5 that forms part of this report.
16. CLASSIFICATION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)
The Company comes under MSME classification, st July 2020 as
"Small" Enterprises (UDYAM-TN-02-0000445). The said category was changed as "Medium"
Enterprises from Small from 16th May, 2021. The Company complies with
all the requirements of MSME and further, avails / utilizes the benefits, arising out of
this reclassification including GOI / MOD contracts and Bank operations.
17. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL
STATEMENTS
(i) The Company has laid down adequate systems and well-drawn
procedures for ensuring internal financial controls. It has appointed an external audit
firm as
Internal Auditors for periodically checking and review.
(ii) Internal Auditors discuss the Internal Audit Reports at the Audit
Committee meetings and present periodical compliances and observations, made by them and
present.
(iii) The Board of Directors have put in place budgetary control and
monitoring measures for ensuring the orderly and efficient conduct of the business of the
Company, safeguarding of its assets, prevention and detection of frauds
and errors, accuracy and completeness of the accounting records and the timely preparation
of reliable financial information.
(iv) Audit Trail requirements as per New Standards, are available in
ERP system.
18. INDIAN ACCOUNTING STANDARDS (Ind AS)
The Financial Statements of the current year are prepared as per Ind
AS, which was adopted since Financial Year 2017–18.
19. CASH FLOW STATEMENT
As required under Regulation 53 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, a Cash Flow Statement is attached to the
Balance Sheet.
20. INDUSTRIAL RELATIONS
Relations between the Management and Employees were cordial throughout
the year under review. The Management ensured that all necessary steps were taken to
follow the guidelines / norms of safety and health mandated by the Government.
21. DIRECTORS
(a) Pursuant to Section 152 (6) of the Companies Act, 2013 and in
accordance with Article 89 of the Articles of Association of the Company, Mr. N
Gopalaratnam (DIN: 00001945), Chairman of the Company, retires by rotation at the ensuing
63rd AGM and being eligible offers himself for re-appointment through
Special Resolution.
Necessary resolution is placed before the members for their approval.
(b) Pursuant to Section 149, 152 and other applicable provisions of the
Companies Act, 2013 and Regulation 17 (1C) of SEBI LODR, Dr. Vijayamohanan K Pillai
(DIN:07308120) was reappointed as Independent Director of the Company for a second term of
five years from 01st April, 2024 to 31st March, 2029 and appointed
Cmde Saroj Kumar Patel (DIN:10474393) and Dr. R Subrahmaniya Sivam (DIN:02393209) as
Independent
Directors of the Company for a fixed term of five years from 01st
April, 2024 to
31st March, 2029 by Special Resolution passed through
Postal Ballot by the shareholders on 20th March, 2024.
22. AUDITORS
(i) The Company obtained the approval of Shareholders at the 61st
AGM held on 29th June, 2022 for the appointment of M/s. Maharaj N R
Suresh and Co LLP, Chartered Accountants as Statutory Auditors of the Company for a Second
term of Five years to hold office from the conclusion of 61st Annual General
Meeting till the conclusion of the 66th Annual General Meeting of the Company.
(ii) On the basis of recommendation of Audit Committee, the Board at
its meeting held on 28th January, 2023 appointed M/s R Subramanian &
Company LLP, Chartered Accountants as Internal Auditor of the Company for a period of two
(2) years, FY 2023 – 24 & FY 2024 – 25.
(iii) The Board at its Board meeting held on 18th March,
2023 appointed M/s. V Suresh Associates, Practicing Company Secretaries as Secretarial
Auditor for a period of two (2) years, FY 2023 – 24 & FY 2024 – 25.
Particulars of Statutory Auditor, Internal auditor and the Secretarial
Auditor are given in the "Corporate Governance" Report that forms an
integral part of this Report.
Secretarial Audit Report, as required by Section 204(1) of the
Companies Act, 2013, is attached as Annexure – 6.
ACKNOWLEDGEMENT
Your Directors wish to express their sincere thanks to: (i) all the
valued customers viz., Defence Services, VSSC, ISRO, RCI, ASL, DRDO Laboratories and
Ministry of Defence (MOD), NSTL, NPOL, NMRL, BDL, BrahMos (BAPL), Skyroot, BEL, HAL, ADE,
ADA, L&T, Mahindra Defence, Agnikul and other Defence based organizations such as
DGONA, DAPI, CVRDE, MGO, Air (HQ), HQMC for the wholehearted support and encouragement,
towards indigenous sourcing of Batteries for strategic applications, fulfilling Atma
Nirbhar.
(ii) all our valued Govt Statutory Bodies like IOF, PCB, Inspection cum
Certifying agencies such as CEMILAC, DGAQA, DGNAI, MSQAA, SSQAG, R&QA for their timely
and meticulous adherence of Quality Assurance / Product acceptance procedures.
(iii) Educational Institutions viz., NIT(T), IIT Chennai for their
co-operation and technical support to our R & D progress. OECT, part of ONGC for
initiating a program on Vanadium Redox Flow Battery (VRFB), Centre for High Technology
(CHT) in partnership with OECT, IOCL and GAIL for initiating development activities
pertaining to Fuel Cells and Electrolyzer based Green Energy using Hydrogen, Research
Institutions like CECRI, for involving in our Indigenization efforts.
(iv) the Overseas customers, who have reposed utmost faith and
confidence in our products;
(v) the Consortium of Bankers viz., UCO Bank Limited (UCO) and Punjab
National Bank
(PNB) for extending timely financial support for the continued positive
performance of the Company; (vi) the Employees at all levels of the company for their
co-operation, harmonious working and the sincere efforts put in, to sustain the
performance.
(vii) to all suppliers, vendors, service providers, sub-contractors and
Shareholders for their continued trust and support.
|
(For Board
of Directors) |
| Chennai |
N
GOPALARATNAM |
| 04th May, 2024 |
Chairman |
|
(DIN:
00001945) |