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Housing & Urban Development Corporation Ltd

BSE Code : 540530 | NSE Symbol : HUDCO | ISIN:INE031A01017| SECTOR : Finance |

NSE BSE
 
SMC down arrow

40.55

-1.25 (-2.99%) Volume 280564

21-Jan-2022 EOD

Prev. Close

41.80

Open Price

41.40

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

40.55(325)

 

Today’s High/Low 41.80 - 40.45

52 wk High/Low 58.25 - 37.85

Key Stats

MARKET CAP (RS CR) 8137.72
P/E 4.8
BOOK VALUE (RS) 68.3987712
DIV (%) 21.8
MARKET LOT 1
EPS (TTM) 8.46
PRICE/BOOK 0.594308922321692
DIV YIELD.(%) 5.36
FACE VALUE (RS) 10
DELIVERABLES (%) 36.44
4

News & Announcements

18-Jan-2022

Housing & Urban Development Corporation Ltd - Statement Of Investor Complaints For The Quarter Ended December 2021

17-Jan-2022

Housing & Urban Development Corporation Ltd - Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations 2018

17-Jan-2022

Housing & Urban Development Corporation Ltd - Housing & Urban Development Corporation Limited - Other General Purpose

10-Jan-2022

Housing & Urban Development Corporation Ltd - Housing & Urban Development Corporation Limited - Change in Director(s)

08-Nov-2021

HUDCO announces change in directorate

06-Nov-2021

Housing & Urban Development Corp. to conduct board meeting

28-Sep-2021

HUDCO receives credit ratings from ICRA

13-Sep-2021

Housing & Urban Development Corp. to hold AGM

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AAVAS Financiers Ltd 541988 AAVAS
Apex Capital and Finance Ltd 541133
Aptus Value Housing Finance India Ltd 543335 APTUS
Awas Ayogen Vittnigam Ltd 526975
Can Fin Homes Ltd 511196 CANFINHOME
Coral India Finance & Housing Ltd 531556 CORALFINAC
GIC Housing Finance Ltd 511676 GICHSGFIN
GRUH Finance Ltd(Merged) 511288 GRUH
Happy Home Profin Ltd (Wound-up) 531451
Housing Development Finance Corporation Ltd 500010 HDFC
Ind Bank Housing Ltd 523465
India Home Loans Ltd 530979
Indiabulls Housing Finance Ltd 535789 IBULHSGFIN
International Housing Finance Corporation Ltd 530781
Kamakshi Housing Finance Ltd 530399
LIC Housing Finance Ltd 500253 LICHSGFIN
Madhur Housing Finance Ltd (Merged) 531383
Manraj Housing Finance Ltd 530537
Mehta Housing Finance Ltd 511740
Oriental Housing Development Finance Corp Ltd 511752
Piramal Capital & Housing Finance Ltd 511072 DHFL
PNB Housing Finance Ltd 540173 PNBHOUSING
Reliance Home Finance Ltd 540709 RHFL
Repco Home Finance Ltd 535322 REPCOHOME
Sahara Housing Fina Corporation Ltd 511533
SBI Home Finance Ltd 500379 SBIHOMEFIN
SRG Housing Finance Ltd 534680
Star Housing Finance Ltd 539017

Share Holding

Category No. of shares Percentage
Total Foreign 7524228 0.38
Total Institutions 165480321 8.27
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 9092049 0.45
Total Promoters 1637677479 81.81
Total Public & others 182125923 9.10
Total 2001900000 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Housing & Urban Development Corporation Ltd

HUDCO was incorporated as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a private limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the then Registrar of Companies, Delhi. Subsequently, the name of the Company was changed to its present name, 'Housing and Urban Development Corporation Limited' and a fresh certificate of incorporation dated July 9, 1974, was issued by the then Registrar of Companies, Delhi & Haryana. The Company is a public sector undertaking engaged in providing loan financing for housing and urban infrastructure projects in India. In 1977, HUDCO launched rural housing schemes for providing loan assistance for construction of rural houses. In 1986, the company established the Human Settlement Management Institute, the research, and training division of the company. In 1988, the company commenced urban infrastructure financing. In 1996, the company was notified as a public financial institution under Section 4A of the Companies Act, 1956 by the Department of Company Affairs, Ministry of Finance, GoI. In 1999, HUDCO began retail financing under the brand name HUDCO Niwas. In 2012, the company's profit after tax (PAT) crossed Rs 600 crore marks. During the financial year 2011-2012, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4684.7 crore raised through a public issue of tax-free bonds. In 2013, HUDCO's PAT crossed Rs 700 crore mark. During the financial year 2012-2013, the company raised Rs 2401.35 crore through a public issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year. During the financial year 2013-2014, HUDCO raised Rs 4987.12 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4796.32 crore raised through a public issue of tax-free bonds. During the financial year 2015-2016, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year including Rs 3500 crore raised through a public issue of tax-free bonds. Government of India (GoI) carried out disinvestments of 20.4 crore shares constituting 10.19% stake in HUDCO via an initial public offer (IPO) in May 2017. Post successful completion of the IPO, GoI's stake in HUDCO came down to 89.81% from 100%. HUDCO shares were listed on the bourses on 19 May 2017. On 28 March 2018, the Board of HUDCO approved the annual borrowing programme of maximum upto Rs 40000 crore for the financial year 2018-19 through various sources/modes. The borrowing limit includes the power to make a private placement of non-convertible debentures (NCDs), subject to the approval of the shareholders of the company in general meeting. On 28 May 2018, HUDCO announced that an old default case of a borrower has been substantially resolved after prolonged litigation, where HUDCO has received an amount of Rs 317 crore, against the dues of Rs 469.38 crore as on 31 March 2018. Housing and Urban Development Corporation Limited (HUDCO) came out with an Initial Public Offering (IPO) of 204,058,747 equity shares of Face Value of Rs 10 each for cash at a price of Rs 60 per equity share aggregating to Rs1209.78 Crores. There was no fresh issue of shares by the company. The IPO was priced at Rs 60 per share. As at 31st March 2019, 89.81% of the shareholding is held by President of India through the Ministry of Housing and Urban Affairs (MoHUA) - 69.08% and Ministry of Rural Development (MoRD) - 20.73% respectively and balance 10.19% is held by Public. During the year 2019, HUDCO successfully completed the consultancy services for construction of Office building for Archaeological Survey of India at Tilak Marg, New Delhi. As on 31st March, 2019, HUDCO has three Joint Venture Companies namely a) Shristi Urban Infrastructure Development Ltd. (SUIDL) b) Pragati Social Infrastructure & Development Ltd. (PSIDL) and c) Signa Infrastructure India Ltd. (SIIL), Further, there is one associate namely Ind Bank Housing Limited. In the case of an associate Company, namely Ind Bank Housing Limited, the company made an investment of Rs 2.50 crore in its equity, being 25% of the paid-up equity share capital. The Company provided for full diminution in the value of investment made in IBHL. During the year 2019, HUDCO sanctioned 55 proposals for financial assistance of Rs 7,196 crore (inclusive of proposals for loan assistance of Rs 893 crore in North Eastern States) under different sectors like water supply, drainage, power sector, social infrastructure, commercial infrastructure, road & transport, etc., against which, an amount of Rs 3,594 crore has been released. During the first quarter of financial year 2019-20, ended 30th June 2019, The Company sanctioned a total loan of Rs 4211.08 crore and disbursed an amount of Rs 3838.88 crore.

Housing & Urban Development Corporation Ltd Chairman Speech

Dear Shareholders, Ladies & Gentlemen,

It gives me immense pleasure to welcome you all on the occasion of the 51st Annual General Meeting (AGM) of HUDCO. The Annual Report for the financial year ending 31st March, 2021 together with the Director’s Report, Audited Financial Statements and the Auditor’s Report of your Company have already been provided to you and with your permission, I take them as read.

It is indeed a proud privilege to share that your Company has completed 51 years of successful journey and has demonstrated yet another year of excellent performance despite COVID-19 pandemic which was responsible for slowdown in economic activities. Despite all these hurdles, your Company has achieved a sanction of Rs. 9,202 crore and disbursement of Rs. 8,323 crore and earned a profit after tax of Rs.1,578.58 crore with a growth of 6.85% in its Net worth.

Under the disinvestment programme of Government of India, on 19th May, 2017, Government of India has divested its shareholding in HUDCO to the extent of 10.19%. Further, in order to achieve threshold limit of public shareholding in the Company to the level of 25% as per SEBI Regulations, Government of India has further divested around 8% (16,01,63,774 equity shares of face value of Rs. 10/- each) of its holding in HUDCO during July/August 2021 through offer for sale.

I would like to share the highlights of HUDCO’s performance during 2020-21, the economic environment, challenges faced and future outlook of the Company, which clearly depicts that your Company is on growth path.

1. Economic Environment

The financial year 2020-21 was very challenging for the economy on account of the factors arising out of the COVID-19 pandemic affecting the overall growth of the Company. The provisional estimates of national income released by the National Statistical Office (NSO) on May 31,2021 revealed that India’s Real Gross Domestic Product (GDP) contracted by 7.3% for 2020-21. During the first two quarters, i.e., Q1 and Q2 of 2020-21, the GDP registered negative growth of 24.4% and 7.4% respectively. Subsequently, in the last two quarters of 2020-21, the GDP growth rates improved to the positive territory, registering growth of 0.5% in Q3 and 1.6% in Q4. In order to mitigate the effects of the pandemic, the Reserve Bank of India (RBI) has reduced policy rates and maintained a soft interest stance throughout the year, as a result, the interest rates were seen heading downwards during the year.

2. Sectoral Overview and Government Policy Initiatives

In order to boost, ‘Housing for All’ and ‘Affordable Housing’ being flagship programmes of the Government of India, the Government in its union budget for the year 2019-20 had provided an additional deduction of interest in tax benefit, amounting to Rs.1.5 lakh to the beneficiaries for loan taken to purchase an affordable house, which has been further extended upto 31st March, 2022 in the 2021-22 budget. Further, to keep up the supply of affordable houses, affordable housing projects have been accorded tax holiday for one more year till 2021-22. The RBI’s action on the key policy rates during the year ensured that the various lending rates including the home loan rates of the banks and the financial institutions remain affordable.

The Government also laid emphasis on the infrastructure sector. The budget 2021-22 envisaged to augment funds for National Infrastructure Pipeline (NIP) by creating the institutional structures, big focus on monetizing assets and by enhancing the share of capital expenditure in central and state budgets. Accordingly, in the budget 2021-22, the Government has announced setting up of a professionally managed Development Financial Institution to act as a provider, enabler and catalyst for infrastructure financing. A sum of Rs. 20,000 crore has been provided in the budget to capitalise this institution. Monetizing operational public infrastructure assets was regarded as an important financing option for new infrastructure construction. In this regard, it was announced that a National Monetization Pipeline of potential brownfield infrastructure assets and an asset monetization dashboard would be created to provide visibility to investors.

3. Emerging Issues in Housing and Urban Infrastructure

As the second wave of the pandemic started to recede, the states started to ease the containment measures. With the gradual unlocking of the prohibitory measures, the domestic economic activity has been gradually picking up and being aided further by the vaccination drive. The economic recovery is likely to gain momentum as these things progress. There is a sense of optimism in the growth outlook for the ensuing year. As per data released by NSO on 3151 Aug 2021, the Q1 GDP for 2021-22 grew by 20.1%. The Reserve Bank of India (RBI) after considering various factors has projected a real GDP growth of 9.5% for the fiscal year 2021-22 as against 7.3% real GDP contraction in 2020-21. To aid economic recovery, the RBI is still maintaining a softer interest rate regime by keeping the policy rates low. With gradual recovery, HUDCO will tap into opportunities that exist in housing and urban infrastructure sectors. The key growth drivers for the housing and urban infrastructure sectors are healthy pace of urbanization, population growth, huge housing shortage and inadequate infrastructure. Recently, the Government has unveiled Rs. 6 lakh crore National Monetisation Pipeline which was envisaged in the budget 2021-22. The pandemic has posed serious challenges to the health infrastructure of the country. As various states will try to ramp up health infrastructure, HUDCO would have business opportunities in Social Infrastructure projects like Health Center, Government Hospitals, Medical Colleges, etc., which have been considered priority lending for HUDCO in the past.

4. Operational and Financial Performance

HUDCO since inception, i.e., April,1970 to March, 2021 has cumulatively sanctioned a total of 17,301 Housing and Urban Infrastructure (UI) projects with a total loan of Rs. 2,13,082 crore and disbursed an amount of Rs. 1,79,527 crore. Further, your Company has sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country of which, 183.19 lakh (95.19%) pertains to EWS/LIG categories. In addition, under HUDCO Niwas, a retail lending window, your Company has cumulatively sanctioned financial assistance of Rs. 6,846 crore to 3.86 lakh individuals and disbursed an amount of Rs. 5,160 crore. The Operational and Financial highlights during the year 2020-21 are as follows: -

a) Under Housing Sector, your Company has sanctioned projects with loan assistance of Rs. 937 crore, inclusive of Rs. 21 crore under HUDCO Niwas, thereby facilitating construction of 12,488 dwelling units. The total loan released was Rs. 3,701 crore (inclusive of Rs. 13 crore under HUDCO Niwas) during current year.

b) Under Urban Infrastructure portfolio, your Company has sanctioned 32 urban infrastructure projects, with loan assistance of Rs. 8,265 crore across various sectors like Water Supply, Metro, Power, Social Infrastructure, Commercial Infrastructure, Road & Transport etc. The total loan released was Rs. 4,622 crore during the current year.

c) Your Company has posted Profit Before Tax (PBT) of Rs. 2,228.64 crore with growth of 2.49 % in Profit Before Tax (PBT).

d) Your Company has seen a growth of 6.85% in its net worth that has reached Rs. 13,189.05 crore from Rs. 12,343.49 crore in financial year 2019-20.

e) Total dividend pay-out will be 21.75%, i.e., Rs. 2.175 per equity share having face value of Rs.10/- each, out of which interim dividend @ 7.50%, i.e., Rs. 0.75 per equity share has already been paid in March, 2021 & April, 2021 and final dividend of 14.25%, i.e., Rs. 1.425 per share will be paid after shareholders' approval at the AGM.

f) As on 31st March, 2021, your Company reported Gross NPA of Rs. 3,054.01 crore, which constitutes 4.03% of total loan portfolio and net NPA was Rs. 369.03 crore, which constituting 0.50% to net loan outstanding. Further an amount of Rs. 76.12 crore was recovered from NPA accounts during the year 2020-21,

5. Social Orientation of HUDCO’s business

HUDCO continues to support the housing needs of the Economically Weaker Sections of the society by offering financial assistance/ loan to the Economically Weaker Sections (EWS) and Low-Income Groups (LIG) segment at a comparatively lower rate of interest. Your Company has cumulatively sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country of which, 183.19 lakh (95.19%) was for the EWS/LIG categories.

6. Credit Rating of HUDCO

During the financial year 2020-21, the Company's long-term domestic borrowing programme was awarded the highest credit rating of ‘CARE AAA [Triple A]; Stable', ‘[ICRA] AAA (Stable)' and ‘IND AAA/Stable' by CARE, ICRA and India Ratings & Research, respectively. The Company also got its short-term borrowing programme rated, obtaining the highest rating of ‘CARE A1+ [A One Plus]', ‘[ICRA] A1+'' and "IND A1+', by the above-mentioned Credit Rating Agencies.

During the financial year 2020-21, two international credit rating agencies - Fitch and Moody's - have awarded ‘BBB- with Negative Outlook' and ‘Baa3 with Negative Outlook' ratings, respectively, to your Company. Each of the above credit ratings is equivalent to India's sovereign rating, and is of investment grade.

7. HUDCO’s Role in Implementation of Government of India flagship programmes - for promoting "Pradhan Mantri Awas Yojana (Urban)- Housing for All" HUDCO is assisting the Ministry of Housing and Urban Affairs in implementation of its flagship programme of ‘Pradhan Mantri Awas Yojna- Urban (PMAY) - Housing for All'.

Further, PMAY-Urban also provides business opportunity to HUDCO by offering loan assistance to State Governments/State Implementing Institutions/Urban Local Bodies to meet their share in the total project cost. The year 2022 being the last year of ‘Housing for All' mission, there is immense scope for viability gap funding under PMAY-Urban. HUDCO will take this opportunity to increase its visibility under ‘Housing for All' program.

As part of PMAY (Urban), till 31.03.21, HUDCO has sanctioned a total of 7 projects in 4 States (Uttarakhand, Andhra Pradesh, Telangana & Kerala) offering a total loan of Rs. 10,677 crore for taking up 5,51,662 housing units. Of the total amount sanctioned, all schemes are in progress and a total amount of Rs. 9,864 crore has been drawn by the State agencies.

Similarly, under PMAY (Rural), till 31.03.21, HUDCO has also sanctioned 1 PMAY (Gramin) housing scheme in the State of Uttar Pradesh for a loan amount of Rs. 2,839 crore and disbursed entire sanctioned amount covering 6.25 lakh dwelling units and the scheme is completed.

HUDCO, as Central Nodal Agency (CNA) has executed MoU with 90 Banks/ Prime Lending Institutions (PLIs) for EWS/LIG category which includes 2 Public Sector Banks, 5 Private Sector Banks, 1 NBFC-MFI, 1 Small Finance Bank, 12 Grameen Banks and 69 Cooperative Banks.

Further, MoU has also been executed with 79 Banks/PLIs for MIG-I and MIG-II which includes 2 Public Sector Bank, 5 Private Sector Bank, 1 NBFC, 13 Grameen Bank and 58 Co-Operative Banks.

Since the launch of CLSS in 2015-16 (as on 31st March 2021), HUDCO has disbursed subsidy of Rs.1,101.26 crore to 49,566 households through 91 PLIs/Banks with whom, MoU has been executed for implementation of PMAU(U) - CLSS.

During 2020-21, the total subsidy amount of Rs. 538.34 crore was disbursed to 23,620 households which includes Rs. 334.73 crore disbursed to 13,985 EWS/LIG households and Rs. 203.61 crore to 9,635 MIG households.

Under Pradhan Mantri Awas Yojana (PMAY) - (Urban), upto March 31st, 2021, HUDCO has so far carried out site and desk scrutiny for 489 projects with project cost of Rs. 46,752.85 crore having central share of Rs. 14,506.68 crore for total of 9.85 lakhs dwelling units (including 9.77 lakh EWS DUs) at 364 towns/cities under 34 States/Union Territories of India. However, during the financial year 2020-21, HUDCO has carried out site and desk scrutiny of 32 projects with project cost of Rs. 2,772.18 crore having central share of Rs. 1,069.58 crore for total of 71,568 dwelling units in 30 towns/cities under 13 States/ Union Territories of India.

8. Human Settlement Management Institute (HSMI)

HUDCO's Research & Training Wing/Human Settlement Management Institute (HSMI) has established itself as an eminent institution in the sector. During the year 2020-21, HSMI has conducted 44 Webinars/Training Programmes for imparting training to 4,712 professionals.

During the year 2020-21, HSMI has conducted two Training programmes in physical form, which were sponsored by Department of Personnel & Training (DoPT) for in-service officials. These programmes were attended by 24 participants.

Six webinars were also conducted for international participants of ITEC programme for 23 officers/ professionals from various countries. One e-ITEC online Training Programme was conducted for 14 participants of Brunei Darussalam. Four Webinars/ Online Training programmes in association with CITYNET were conducted for 331 domestic/international participants.

During the year, a special issue of ‘Coffee Table Book' with compilation of award-winning entries under best practices, since introduction of the HUDCO Best Practices Award in 2011-12, was released online during World Habitat Day celebration.

9. Human Resources Management

The backbone of any organisation is its human resources. HUDCO has a multi-disciplinary talent pool of professionals from Projects, Finance, Law, Information Technology, Human Resources, Public Relations, etc. Your Company regularly arranges capacity building programmes for its employees under various functional areas relevant to their fields. However, 2020-21 was a year of pandemic, therefore to avoid any health hazard, the online mode was followed for imparting training during the year in different professional fields. During the year, 35 online training programmes were conducted in various areas relevant to Company's operations and for up-gradation of employee's skills. In addition to this, health talks and online interaction of employees with health expert was also organised in view of the pandemic and overall well-being of the employees.

10. Corporate Social Responsibility (CSR)

During the year 2020-21, your Company has spent/released a total amount of Rs. 7.44 crore on CSR projects, however, based on utilization certificate received from the agencies, an amount of Rs. 5.74 crore has been booked in the financial statements as an utilized amount. In compliance with the Ministry of Corporate Affairs, GoI, notification, dated 22nd January 2021, HUDCO has transferred an amount of Rs. 80,19,41,235/- to the Special Account opened with State Bank of India named as ‘Unspent Corporate Social Responsibility Account', being the unspent amount. The position with respect to Corporate Social Responsibility and Annual Report on CSR for the financial year 2020-21 has duly been explained/ annexed with the Directors Report.

11. Corporate Governance

HUDCO is fully committed to promote and establish a fair, transparent and ethical system of Corporate Governance. HUDCO ensures transparency in all its operations with special emphasis on financial prudence, accountability and ensuring customers/stakeholder's satisfaction. As per requirements of the SEBI (LODR) Regulations, 2015 and DPE guidelines on Corporate Governance, a report on Corporate Governance is made part of the Director's Report.

12. Future Outlook

COVID-19 pandemic outbreak has adversely impacted the economic performance across the world. Indian economy is also likely to be impacted in a major way due to the current pandemic. The economic slowdown will impact all sectors in the economy including the Housing and Urban Infrastructure sectors. HUDCO has to keep up with the challenges of the current scenario and strive to continue business with various State Government Agencies.

The commitment of Government of India to achieve the Sustainable Development Goals can be realised only if actions at the National Level are complimented by initiatives of the State Governments/Union Territories (UTs) and Urban Local Bodies. The States/UTs have the prime responsibility in achieving Sustainable Development Goals (SDGs) and are essential stakeholders in implementing the agenda.

The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission has been allocated Rs. 7,300 crore in the budget estimates of 2021-22. HUDCO will strive to tap potential business for viability gap funding. The Government of India has launched the ‘Swachh Bharat Mission- 2.0' with an allocation of Rs. 1.41 lakh crore for five years from 2021 till 2026, to focus on solid waste management, safe sanitation, water treatment and recycling. These sectors also offer potential business opportunities for HUDCO. Smart city project is one of the diversified fields in the core infrastructure sector for HUDCO financing. An allocation of Rs. 6,450 crore has been made for this mission in the Union budget of 2021-22.

13. Acknowledgements

On behalf of the Board of Directors, I am indeed grateful for the co-operation, guidance and support extended by the Government of India particularly Ministry of Housing and Urban Affairs, Ministry of Rural Development, Department of Public Enterprises, Reserve Bank of India, National Housing Bank, Securities and Exchange Board of India and Ministry of Corporate Affairs. I also thank the Comptroller & Auditor General of India and Statutory Auditors for their significant contribution.

I also wish to thank our investors, lenders and borrowers specially the State Governments, State Government Agencies, Municipal/ Local Bodies and other parastatal institutions for reposing their continued support. I also place on record my special thanks to all the stakeholders of the Company for extending their valuable support and cooperation.

I am also thankful to all the employees of the Company at all levels for their dedication and commitment to achieve excellent performance year after year and wish for their continued support in future as well.

Thank you for your kind support.

Sd/-

Kamran Rizvi, IAS

Chairman & Managing Director

   

Housing & Urban Development Corporation Ltd Company History

HUDCO was incorporated as 'The Housing and Urban Development Finance Corporation Private Limited' on April 25, 1970, as a private limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the then Registrar of Companies, Delhi. Subsequently, the name of the Company was changed to its present name, 'Housing and Urban Development Corporation Limited' and a fresh certificate of incorporation dated July 9, 1974, was issued by the then Registrar of Companies, Delhi & Haryana. The Company is a public sector undertaking engaged in providing loan financing for housing and urban infrastructure projects in India. In 1977, HUDCO launched rural housing schemes for providing loan assistance for construction of rural houses. In 1986, the company established the Human Settlement Management Institute, the research, and training division of the company. In 1988, the company commenced urban infrastructure financing. In 1996, the company was notified as a public financial institution under Section 4A of the Companies Act, 1956 by the Department of Company Affairs, Ministry of Finance, GoI. In 1999, HUDCO began retail financing under the brand name HUDCO Niwas. In 2012, the company's profit after tax (PAT) crossed Rs 600 crore marks. During the financial year 2011-2012, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4684.7 crore raised through a public issue of tax-free bonds. In 2013, HUDCO's PAT crossed Rs 700 crore mark. During the financial year 2012-2013, the company raised Rs 2401.35 crore through a public issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year. During the financial year 2013-2014, HUDCO raised Rs 4987.12 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year, including Rs 4796.32 crore raised through a public issue of tax-free bonds. During the financial year 2015-2016, the company raised Rs 5000 crore through an issue of tax-free bonds, as allocated by the CBDT in its budget allocation for the year including Rs 3500 crore raised through a public issue of tax-free bonds. Government of India (GoI) carried out disinvestments of 20.4 crore shares constituting 10.19% stake in HUDCO via an initial public offer (IPO) in May 2017. Post successful completion of the IPO, GoI's stake in HUDCO came down to 89.81% from 100%. HUDCO shares were listed on the bourses on 19 May 2017. On 28 March 2018, the Board of HUDCO approved the annual borrowing programme of maximum upto Rs 40000 crore for the financial year 2018-19 through various sources/modes. The borrowing limit includes the power to make a private placement of non-convertible debentures (NCDs), subject to the approval of the shareholders of the company in general meeting. On 28 May 2018, HUDCO announced that an old default case of a borrower has been substantially resolved after prolonged litigation, where HUDCO has received an amount of Rs 317 crore, against the dues of Rs 469.38 crore as on 31 March 2018. Housing and Urban Development Corporation Limited (HUDCO) came out with an Initial Public Offering (IPO) of 204,058,747 equity shares of Face Value of Rs 10 each for cash at a price of Rs 60 per equity share aggregating to Rs1209.78 Crores. There was no fresh issue of shares by the company. The IPO was priced at Rs 60 per share. As at 31st March 2019, 89.81% of the shareholding is held by President of India through the Ministry of Housing and Urban Affairs (MoHUA) - 69.08% and Ministry of Rural Development (MoRD) - 20.73% respectively and balance 10.19% is held by Public. During the year 2019, HUDCO successfully completed the consultancy services for construction of Office building for Archaeological Survey of India at Tilak Marg, New Delhi. As on 31st March, 2019, HUDCO has three Joint Venture Companies namely a) Shristi Urban Infrastructure Development Ltd. (SUIDL) b) Pragati Social Infrastructure & Development Ltd. (PSIDL) and c) Signa Infrastructure India Ltd. (SIIL), Further, there is one associate namely Ind Bank Housing Limited. In the case of an associate Company, namely Ind Bank Housing Limited, the company made an investment of Rs 2.50 crore in its equity, being 25% of the paid-up equity share capital. The Company provided for full diminution in the value of investment made in IBHL. During the year 2019, HUDCO sanctioned 55 proposals for financial assistance of Rs 7,196 crore (inclusive of proposals for loan assistance of Rs 893 crore in North Eastern States) under different sectors like water supply, drainage, power sector, social infrastructure, commercial infrastructure, road & transport, etc., against which, an amount of Rs 3,594 crore has been released. During the first quarter of financial year 2019-20, ended 30th June 2019, The Company sanctioned a total loan of Rs 4211.08 crore and disbursed an amount of Rs 3838.88 crore.

Housing & Urban Development Corporation Ltd Directors Reports

Dear Members,

The Board of Directors of your Company are delighted to present the 51st Directors' Report, along with Audited Financial Statements (both standalone and consolidated) for the financial year ended on March, 2021.

1. FINANCIAL PERFORMANCE AND HIGHLIGHTS

The important financial highlights on standalone basis for the year ended 31st March, 2021 are as under:

(Rs. in crore)

Particulars 2020-21 2019-20
Revenue from Operations 7234.58 7532.12
Other Income 43.15 39.52
Total Income 7277.73 7571.64
Finance cost 4764.82 4847.81
Impairment on Financial instruments (73.63) 155.76
Other Expenses including Employee Benefit Exp. 357.90 393.54
Total expenditure 5049.09 5397.11
Profit before tax 2228.64 2174.53
Less:
Current Tax 427.50 453.00
Deferred tax 226.64 14.91
Adjustment of tax of earlier years (Net) (4.08) (1.80)
Profit after tax 1578.58 1708.42
Other Comprehensive Income (19.37) (16.64)
Total Comprehensive Income 1559.21 1691.78
Balance Surplus of previous year 7.46 0.04
Amount available for Appropriation 1566.67 1691.82
Less: Appropriation
Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 and u/s 29C of NHB Act, 1987 440.00 500.00
Transfer to Debenture Redemption Reserve 439.83 439.83
Transfer to Reserve for Bad & Doubtful Debt 89.00 93.08
Interim Dividend 150.14 150.14
Transfer to Impairment Reserve 161.81 -
Tax on Interim dividend - 30.86
Net surplus after appropriations 285.90 477.91
Proposed final dividend 285.27 470.45
Surplus available after final dividend 0.63 7.46
EPS (Basic/Diluted) (in Rs.) 7.89 8.53

Financial year 2020-21 has thrown up unprecedented challenges for the business of the Company due to pandemic. Financial year has started with nationwide lockdown in wake of COVID-19 pandemic, the same has resulted in slowdown in economic activities.

During the period, your Company has performed very well by witnessing a growth of 2.49 % in Profit before Tax (PBT). Your Company has seen a growth of 6.85% in its Net worth that has reached Rs. 13,189.05 crore in financial year 2020-21 from Rs. 12,343.49 crore in financial year 2019-20.

The financial year ended 31st March, 2021 marked a full year since the World Health Organisation declared the outbreak of COVID-19 as a pandemic. Countries across the globe continued to face drastic economic and social disruptions along with tragic loss of lives and livelihoods. Eruptions of new waves and variants of the virus necessitated restrictions and lockdowns.

In accordance with Reserve Bank of India guidelines on COVID-19 Regulatory package dated 27th March, 2020, 17th April, 2020 and 23rd May, 2020, the Company had offered moratorium on the payment of instalments falling due between 1st March, 2020 to 31st August, 2020 to eligible borrowers whose account is Standard and not in default as per Board approved guidelines.

The extent to which the COVID-19 pandemic shall impact the Company's future results shall depend on developments, which are highly uncertain, including among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact. The Company shall continue to closely monitor any material changes to future economic conditions. However, operating in the Government Guarantee as security with most of the Government borrowers additionally supported with budgetary provision of the Government or mortgage as security, we believe that we hold a much stable asset class and better borrower profile, which can withstand the pandemic relatively better.

In April, 2021, India witnessed a second wave of infections, however, HUDCO's operations may not be impacted due to the reasons as mentioned in the foregoing para.

Consolidated Financial Statements

Pursuant to Section 129(3) of the Companies Act, 2013, the Company has prepared Consolidated Financial Statement (CFS) in respect of only one Joint Venture Company namely M/s Shristi Urban Infrastructure Development Limited and an appropriate disclosure stating the reasons relating to non-consolidation of accounts of other three companies have been given in the CFS.

A Statement containing salient features of financial statements of Joint Venture and Associate Companies, has been given in the prescribed format AOC - 1 and is annexed as part of the financial statements.

There are no material changes and commitments, occurred subsequent to the close of financial year of the Company and the date of this Board's report, affecting the financial position of the Company and its state of affairs.

Pursuant to Section 136 of the Companies Act, 2013, the Audited Financial Statements and all other documents required to be attached with the financial statements are available on the Company's website at www.hudco.org and are also be available for inspection till the date of the ensuing Annual General Meeting during business hours on all working days at the Registered Office of the Company.

2. DIVIDEND

Your Company is consistently rewarding its shareholders by way of dividend payment. The Board of Directors of your Company had earlier approved payment of interim dividend @ 7.50 %, i.e., Rs. 0.75 per equity share having face value of Rs. 10/- each totalling to Rs. 150.14 crore on the paid-up equity share capital of the Company in March, 2021 and the same has been paid.

Further, the Board of Directors, have also recommended payment of final dividend @ 14.25 %, i.e., Rs. 1.425 per equity share having face value of Rs. 10/- each for the financial year 2020-21, subject to approval of the shareholders at the ensuing 51st Annual General Meeting.

In compliance with regulation 43-A of Securities and Exchange Board of India (Listing Obligations and Disclosures Requirement) Regulations, 2015, your Company has formulated ‘Dividend Distribution Policy, and the same is available on Company's website at https://www.hudco.org// writereaddata/DDP.pdf.

As per guidelines issued by Department of Investment and Public Asset Management (DIPAM), Government of India, Company is required to pay a minimum annual dividend of 30% of Profit after Tax (PAT) or 5% of the net-worth, whichever is higher. After analysis various financial parameters, cash flow position and available distributable profits, the Board of Directors have paid/recommended lower dividend for the financial year than as prescribed under DIPAM guidelines.

3. SHARE CAPITAL

During the year under report, there is no change in the authorized, issued, subscribed and paid-up equity share capital of the Company. The Company has neither issued any shares with differential voting right nor any Sweat Equity Shares during the year under report.

As on 31st March, 2021, the authorized share capital of the Company was Rs. 2500 crore with issued, subscribed and paid-up equity share capital of Rs. 2001.90 crore, comprises of - President of India, being promoter of the Company with 89.81% (held through the Ministry of Housing and Urban Affair (MoHUA) - 69.08% and Ministry of Rural Development (MoRD) - 20.73% respectively) and the balance of 10.19% with the Public.

In order to achieve threshold limit of public shareholding in the Company to the level of 25% as per SEBI Regulations, President of India, being the promoter through MoHUA, Government of India has further divested 8% (16,01,63,774 equity shares of face value of Rs. 10/- each) of its holding in HUDCO in July/August, 2021.

After divestment, the shareholding of President of India in HUDCO has been reduced from 89.81% to 81.81 %. The present shareholding after divestment is - President of India 81.81% (held through MoHUA 61.08% and MoRD 20.73%) and public shareholding is 18.19%.

Listing of Shares and Payment of Listing Fee

The Equity Shares of the Company are listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE). Further, annual listing fee for the financial year 2021-22 has been paid to the Stock Exchange(s).

Transfer of unclaimed Dividend and Shares to Investor Education & Protection Fund

As per provisions of Section 124 and 125 of the Companies Act, 2013, no amount of dividend remained unpaid or unclaimed for a period of 7 years or more from the date it became due for payment, accordingly, is not required to be transferred to Investor Education & Protection Fund (IEPF). Further, there are no shares required to be transferred to IEPF account.

4. MEMORANDUM OF UNDERSTANDING (MoU)

Your Company is expected to be rated Excellent by Department of Public Enterprises (DPE) for its performance in terms of the Memorandum of Understanding (MoU) parameters for the financial year 2019-20.

Further, your Company has entered into MoU with its Administrative Ministry, i.e., Ministry of Housing and Urban Affairs (MoHUA) for the financial year 2020-21, indicating the targets to be achieved for the key performance parameters. The financial year 2020-21 has thrown up unprecedented challenges to the business of the Company due to the pandemic and for reasons beyond the control of your Company. Despite these, it remained undithered and put in unstinting efforts to attain optimal performance in 2020-21 in order to keep up with its record ‘Excellent' rating that it has achieved in the last 8 years (2011-12 to 2018-19).

5. LENDING ACTIVITIES

In the wake of outbreak of the COVID-19 pandemic, the financial year 2020-21 started with unprecedented nation-wide lockdown, which led to a slowdown in economic activities. Department of Expenditure, Ministry of Finance, in view of circumstances prevailing in the current financial year had issued an Office Memorandum dated 4th June, 2020, directing the State Governments that no new proposals be initiated in financial year 2020-21 except announced under PM Gareeb Kalyan Package, Atma Nirbhar Package and any other special package and schemes already approved in financial year 2020-21 and will remain suspended for one year till 31st March, 2021. Thus, State Government Agencies initiated very few projects leading to a fewer opportunity for HUDCO to tap into the business.

Despite the challenges posed, HUDCO, with its prudent business policies adopted by the management at all levels, could register sanctions of Rs. 9,202 crore and disbursement of Rs. 8,323 crore against the previous year sanctions and disbursements of Rs. 19,942 crore and Rs. 10,122 crore respectively.

HUDCO in its glorious journey of 51 years, since inception in 1970, has cumulatively sanctioned a total of 17,301 housing and urban infrastructure projects with a total loan of Rs. 2,13,082 crore and disbursements of Rs.1,79,527 crore. Further, your Company has sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country, of which 183.19 lakh (95.19%) pertains to EWS / LIG categories. In addition, under HUDCO Niwas, a retail lending window, your Company has cumulative sanctioned financial assistance of Rs. 6,846 crore to 3.86 lakh individuals and disbursed an amount of Rs. 5,160 crore.

Reserve Bank of India vide letter dated 22nd October, 2020 has issued revised regulatory framework for Housing Finance Companies (HFCs). Since, HUDCO existing operational parameters does not fall under the revised framework as Housing Finance Company, accordingly HUDCO has to convert itself to Non-Banking Finance Company - ICC or IFC, within a period of six months as advised by RBI vide letter dated 26th March, 2021, for which necessary action has been initiated. RBI further advised that the exemption from concentration/exposure norms granted previously by National Housing Bank/ Reserve Bank of India would continue subject to the conditions as specified while granting such exemptions.

Housing Operations

Under Housing sector, during the year under review, HUDCO has sanctioned projects with a loan assistance of Rs. 937 crore, inclusive of Rs. 21 crore under HUDCO Niwas, thereby facilitating construction of 12,488 dwelling units. Loan release for an amount of Rs. 3,701 crore (inclusive of Rs. 13 crore under HUDCO Niwas) has been made during current year.

Urban Infrastructure Lending

Under the Urban Infrastructure portfolio, during the year, HUDCO has sanctioned 32 projects with a loan assistance of Rs. 8,265 crore across various sectors like Water Supply, Metro, Power, Social Infrastructure, Commercial Infrastructure, Road & Transport, etc., against which release of Rs. 4,622 crore has been made.

HUDCO is actively participating in Government of India prestigious flagship program of Smart City Mission. In the financial year 2020-21, HUDCO has provided financial assistance of Rs 1000 crore to Bhopal Smart City. Other Key projects taken up during the year are Kochi Metro Rail and Semi High-Speed Rail in Kerala.

Support to Government of India Flagship Programs

HUDCO, as a premier techno-financial institution and an integral part of the Government of India Mission programs, is assisting the Ministry of Housing and Urban Affairs in implementation of its flagship programs - Pradhan Mantri Awas Yojana (Urban) - Housing for All [ PMAY-HFA (Urban)] through scrutiny and inspection of sample projects/ DPRs.

PMAY(U) Mission seeks to address the housing requirement of the urban poor including the slum dwellers through the 4 verticals, namely:

a) In-situ Slum Redevelopment (ISSR) (using land as a resource),

b) Credit Linked Subsidy Scheme (CLSS),

c) Affordable Housing in Partnership (AHP), and

d) Beneficiary Led Construction (BLC) - New Construction & Enhancement Projects.

During the financial year 2020-21, HUDCO has carried out site and desk scrutiny of 32 projects with project cost of Rs. 2772.18 crore having central share of Rs. 1069.58 crore for total of 71,568 dwelling units in 30 towns/cities under 13 States/ Union Territories of India. Cumulatively till 31st March, 2021, HUDCO has carried out site and desk scrutiny for 489 projects with project cost of Rs. 46752.85 crore having central share of Rs. 14506.68 crore for total of 9.85 dwelling units (including 9.77 lakh EWS DUs) at 364 towns/cities under 34 States/ Union Territories of India.

As on 31st March, 2021, HUDCO, as Central Nodal Agency (CNA) under Pradhan Mantri Awas Yojna (Urban) - Credit Linked Subsidy Scheme (CLSS), has cumulatively disbursed subsidy of Rs. 1101.26 crore to 49566 households since the launch of CLSS in 2015-16 through 91 PLIs/Banks with whom, MoU has been executed for implementation of PMAY(U) -CLSS. During 2020-21, total subsidy amount of Rs. 538.34 crore was disbursed to 23620 households which includes Rs. 334.73 crore disbursed to 13985 EWS/LIG households and Rs. 203.61 crore to 9635 MIG households.

Further, PMAY also provides business opportunity to HUDCO in the form of viability-gap funding, wherein, HUDCO offers loan assistance to State Governments / State Implementing Institutions / Urban Local Bodies to meet their share in the total project cost. The year 2022 being the last year of ‘Housing for All' mission, there is immense scope for viability gap funding under PMAY HUDCO will take this opportunity to increase HUDCOs visibility under HFA program.

Sectorial overview and government initiative

Support to Economically Weaker Sections - HUDCO continues to address the housing needs of the economically weaker sections of the society by offering financial assistance/loan to the Economically Weaker Sections (EWS) and Low-Income groups (LIG) segment of the society at a comparatively lower rate of interest. Your Company has cumulatively sanctioned financial assistance to more than 192.45 lakh housing units both in rural and urban areas in the Country, of which 183.19 lakh (95.19%) pertains to EWS / LIG categories.

HUDCO’s Support for projects in the North-Eastern Region - To support the projects in the North-Eastern Region of the Country, during the year, your Company has sanctioned 21 housing and urban infrastructure schemes with loan assistance of Rs. 1,620.12 crore in the States of Assam, Meghalaya, Arunachal Pradesh, Manipur and Nagaland.

Consultancy Initiatives

HUDCO provides consultancy services in the area(s) of Architectural Design & Development; Urban & Regional Planning; Appraisal Scrutiny & Monitoring of Government Projects; and Environmental Engineering, for the housing and urban development sector, through a dedicated team of qualified and experienced professionals from diverse background such as Architects, Planners, Landscape Experts, Geographers, Engineers, Valuers, GIS Expert and other allied professionals.

HUDCO has since inception successfully handled more than 300 projects which bears testimony to the firm's commitment to produce the best in every project commissioned. During 2020-21, the consultancy activities owing to the pandemic COVID-19 were restricted to a few niche areas like providing assistance to the Karnataka State Government in preparation of the Housing for All Plan of Action, preparation of DPR for comprehensive EWS Housing Layout at Kumaragurupallam in Raj Bhavan constituency, Puducherry under Smart City Project Housing Sector 2020-21, and reports on appraisal of four projects awarded by Delhi Police Department, while continuing work on the existing prestigious assignments.

As part of environmental consultancy, during 2020-21, HUDCO as Third-Party Assessment Agency for ‘Evaluation of 3 Central Sector Schemes namely; Pollution Abatement Scheme, Hazardous Substances Management Scheme and Control of Pollution Scheme implemented by Ministry of Environment Forest and Climate Change (MoEF&CC) under the Umbrella category of Environmental Protection (Group-I)', submitted the final reports to MoEF&CC besides undertaking appraisal of two Integrated Management Plans of Pala Wetland and Tamdil Wetland, Mizoram, under National Plan of Conservation of Aquatic Eco-Systems (NPCA).

HUDCO Awards and Other works

HUDCO Consultancy has played a key role in information dissemination and increasing awareness about sustainable housing and urban development through exhibitions and awards. HUDCO Design Award instituted in 2012 to appreciate and invite innovative works done by professionals working in the field of Housing, Heritage Conservation, Landscape, Eco-cities, Green Buildings and Disaster Resistance Technology, etc., as in previous years, received entries from all over India for 2020-21, and were evaluated by team of eminent experts in the sector.

Another, unique design competition, the HUDCO NASA DESIGN TROPHY was organized on the theme ‘Rental Housing Addressing Informality', engaging and facilitating interaction among students of architecture from all over India. The aim was to sensitize the students of challenges brought to fore by the pandemic - impacting the poor migrant workers, informally employed/ people in the informal work force, and, to look at efficient, adequate, sustainable and affordable rental housing options for an improved quality of life to meet their requirements in a desirable manner.

Besides this, an e-publication of HUDCO Construction & Consultancy Services was circulated expressing HUDCO's intent for rebuilding the economy and lives of people in the post pandemic era.

6. FINANCIAL REVIEW

(i) Accounting Policies

During the year under report, your Company has made certain modification/ additions in the existing accounting policies. The above modification/additions in the accounting policies have no financial impact on the financial statements of the Company.

(ii) Income from Operations and Profitability

Your Company has reported total income for the financial year 2020-21 at Rs. 7277.73 crore (previous year Rs. 7571.64 crore) inclusive of other income of Rs. 43.15 crore (previous year Rs. 39.52 crore). While the Profit before Tax (PBT) for the year was Rs 2228.64 crore (previous year Rs. 2174.53 crore) and Profit after Tax (PAT) was Rs. 1578.58 crore (previous year Rs. 1708.42 crore). Total comprehensive income for the year was reported at Rs. 1559.21 crore (previous year Rs. 1691.78 crore).

(iii) Non-Performing Assets

The Default and NPA position of your Company is regularly monitored to keep a check on any fresh addition to NPAs and for resolution of old and chronic defaults and in compliance with the prudential guidelines for Non-Performing Assets (NPAs) under the Housing Finance Companies (NHB) Directions, 2010, as amended from time to time. The default and NPA position of all Regional Offices is regularly monitored by their regional level Default Monitoring & Review Committee and Default Monitoring & Default Resolution (DMDR) Wing at Head Office. DMDR Wing at Head Office also undertakes joint review of Regional Offices alongwith Operations & Law Wing through video conferences. In addition, the overall default & NPA position is reviewed by Default

Monitoring & Resolution Committee (DMRC), Committee for Review of NPAs (a Board level Committee) and Board of Directors.

As at the end of the financial year ended 31st March, 2021, HUDCO reported gross NPA of Rs. 3,054.01 crore, which constitutes 4.03% of total loan portfolio. The net NPA as on 31st March 2021 is Rs. 369.03 crore which constitutes 0.50% to net loan outstanding as against MoU target of 0.19%. During the year 2020-21, an amount of Rs. 76.12 crore was recovered from NPA accounts. As on 31st March 2021, Loan Overdue to Net Loan Assets ratio is 9.85% as against MoU target of 8.90%.

The Company has made a total provision on loans (Impairment) as per ECL approach of Rs. 2753.39 crore. Out of the above, the provision on account of loans (Impairment) against NPA (Stage - III) loans is Rs. 2,684.98 crore.

As on 31st March, 2021, out of HUDCO's total loan book pertaining to project loans of Rs. 75,506.28 crore, government agencies constitute 96.71% while private sector constitutes 3.29%. In the case of loans to government sector (project loans), the gross NPA is Rs. 551.47 crore against loan portfolio of Rs. 73,022.49 crore and provision of Rs. 214.16 crore has been made towards NPA. Whereas, in private sector (project loans), the gross NPA is Rs. 2,483.79 crore against loan portfolio of Rs. 2,483.79 crore and a provision of Rs. 2,452.06 crore has been made towards NPA. Further, HUDCO is not making any fresh sanctions to the private sector, since March 2013.

(iv) Resource Mobilization

During the financial year 2020-21, the Company mobilized resources aggregating to Rs. 7,850 crore from domestic markets through diversified sources. This included long term resources of Rs. 6,350 crore mobilized through issue of unsecured Taxable Bonds on private placement basis. Further, the Company has mobilized Rs.1,500 crore through issue of Commercial Paper(s) for a period of one year. The tenure of the Bonds was decided based on market conditions and were linked to cumulative gaps in various time buckets, as per the ALM reports.

The Company also had approved Cash Credit/ Working Capital Demand Loan limits amounting to Rs. 8,655 crore from various scheduled commercial banks, for bridging any liquidity/ ALM mismatches and meeting interim operational/ contingency requirements. The said facilities were available with the Company without any commitment charges towards unutilized amounts.

As a part of prudent policy, the short-term resources are suitably replaced at an opportune time with longer tenor alternate resources depending upon prevalent market conditions, internal liquidity position and actual operational requirements.

As on 31st March, 2021, HUDCO's overall borrowings stood at Rs. 60,977.96 crore, which comprised of long-term borrowings of Rs. 59,477.96 crore and short-term borrowings of Rs. 1,500 crore. Further, as on 31st March, 2021, the long-term borrowings to Net worth stood at 4.51 times, as against 4.66 times as on 31st March, 2020.

(v) Domestic and International Credit Rating Domestic

During the financial year 2020-21, the Company's long-term domestic borrowing programme was awarded the highest credit rating of ‘CARE AAA [Triple A]; Stable', ‘[ICRA] AAA (Stable)' and ‘IND AAA/Stable' by CARE, ICRA and India Ratings & Research, respectively. The Company also got its short-term borrowing programme rated, obtaining the highest rating of ‘CARE A1+ [A One Plus]', ‘[ICRA] A1+'' and "IND A1+', by the above-mentioned Credit Rating Agencies.

International

During the financial year 2020-21, two international credit rating agencies - Fitch and Moody's - have awarded ‘BBB- with Negative Outlook' and ‘Baa3 with Negative Outlook' ratings, respectively, to your Company. Each of the above credit ratings is equivalent to India's sovereign rating, and is of investment grade.

(vi) Cost of Borrowings

The overall weighted average cost of resources raised during the financial year 2020-21 was 5.63% p.a. and for borrowings outstanding as on 31st March, 2021 is 7.68% p.a. (as compared to 7.80% p.a. as on 31st March, 2020). The weighted average incremental cost of borrowing through taxable bonds, worked out to 1 (one) bps lower than the Benchmark Yield of ‘AAA' Rated CPSEs of equivalent tenor prevailing at different points in time when the borrowings were made during the course of the year, thereby enabling achievement of Excellent category MoU target for cost of borrowings. As a result, the Company was able to deliver debt financing for various Housing & Infrastructure projects, spread across the Country, at competitive rates.

The Company was able to achieve this feat through constant monitoring of the markets, proper timing of its borrowings and appropriate selection of instruments.

(vii) Redemption of debt securities and repayment of loans (excluding the borrowings availed and repaid during the same financial year)

The Directors' are pleased to report that during the year under review, the Company successfully redeemed bonds and discharged its other debt obligations amounting to Rs 8308.48 crore in an efficient manner. These included Bonds valued at Rs. 2589.35 crore, Term Loans/ Short-Term loans from Banks and financial institutions worth Rs. 4,274.16 crore, foreign currency loans availed from Multilateral Agencies aggregating to Rs. 99.14 crore, Commercial Paper(s) of Rs.1,200 crore and public deposits of Rs.145.83 crore. The Company is set to honour scheduled obligations towards redemption of Bonds, repayment of other debt obligations amounting to around Rs. 6,445 crore during the next fiscal.

The Company's internal generations are adequate to meet the repayment/ redemption obligations. Surplus funds, if any, after meeting the repayment obligations are invested prudently in the form of fixed deposits with banks.

The Company continues to maintain its impeccable track record of servicing its debt in time and there has never been a single instance of default.

(viii) Unclaimed amount under HUDCO Bonds

Bonds aggregating to Rs. 10,00,75,224/- (inclusive of interest amount of Rs. 9,50,75,224) in respect of 3,212 bondholders remained unpaid as on 31st March 2021, as the same have yet not been claimed by the bond holders.

The details of amount remaining unclaimed are as under:

(in Rs.)

Financial Year

Principal

Interest

Total Amount

Amount No. of Holders Amount No. of Holders
2018-19 1,50,00,000 5 7,29,54,415 2687 8,79,54,415
2019-20 50,00,000 4 7,80,77,353 2910 8,30,77,353
2020-21 50,00,000 4 9,50,75,224 3212 10,00,75,224

In respect of the above unclaimed amount, the bond holder(s) have been requested from time to time through emails/ letters, etc., for submission of requisite documents for claiming the amount of Principal/ Interest, as may be due in their respective case(s).

In respect of Bonds, the Company in terms of section 125 of the Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 notified on 5th September, 2016, is presently transferring unclaimed principal and/or interest, or both (if any), which are paid on due dates as per the terms of the Bonds, after 7 years from the maturity date of the Bonds to Investor Education and Protection Fund (IEPF).

During the financial year 2020-21, an amount of Rs. 4,67,120/- has been transferred to IEPF on account of Bonds, as per the provisions of the Companies Act, 2013.

(ix) Dematerialization of Bonds

During the financial year 2020-21, HUDCO has issued Unsecured, Taxable Bonds in dematerialized form only. With this, all Taxable Bonds, issued by the Company and outstanding as on 31st March, 2021 are in dematerialized form only. The Company has made necessary arrangement with NSDL and CDSL for issue of bonds in dematerialized form. The Company has also appointed Registrar & Transfer Agents (RTA) for maintaining the continuous electronic connectivity with NSDL/CDSL and investors.

Investors can deal in these bonds as per the provisions of Depository Act, 1996, as amended and such deals are cleared & settled in recognised Stock Exchanges subject to conditions specified by SEBI.

(x) HUDCO Public Deposit Scheme

HUDCO, being a Housing Finance Company registered with National Housing Bank (NHB) is governed by provisions of Housing

Finance Companies (NHB) Directions, 2010 relating to Public Deposits.

HUDCO had discontinued accepting/renewing Public Deposit under the Public Deposit Scheme with effect from 1st July, 2019, accordingly, during the financial year 2020-21, no fresh deposits were accepted/renewed by HUDCO. Deposits of Rs. 145.83 crore were matured/paid to 693 depositors. The total amount outstanding under HUDCO Public Deposit Scheme was Rs. 22.78 crore from 523 depositors as on 31st March, 2021.

(xi) Unclaimed amount under HUDCO Public Deposit Scheme

As on 31st March, 2021, deposit(s) amounting to Rs 36,30,882/- (inclusive of Principal and Interest) from 30 depositors remains unclaimed.

In respect of unclaimed Deposits, the Deposit holder(s) have been requested from time to time through email/ letter, etc., for submission of requisite documents for claiming the unclaimed amount.

During the financial year 2020-21, an amount of Rs 8,44,201/- remained unclaimed for more than seven years from the date of maturity and was transferred to the ‘Investor Education and Protection Fund' (IEPF), as per the provisions of the Companies Act, 2013 and rules made thereunder.

(xii) Deployment of Resources at the close of the year

At the close of the financial year 2020-21, the total resources of your Company stood at Rs. 76959.05 crore. Out of this, Equity Share Capital amounted to Rs. 2,001.90 crore, Reserves & Surplus stood at Rs. 11187.15 crore, Loans from Financial Institutions, Commercial Banks, Multilateral Institutions, Public Deposits and Market Borrowings through Bonds and Commercial paper accounted for Rs. 60977.96 crore, Deferred Tax Liabilities (Net) amounted to Rs. 633.68 crore and other liabilities & provisions stood at Rs. 2158.36 crore. These funds were deployed as Long/Short Term Loan & Advances of Rs. 74291.89 crore, Fixed Assets (net of depreciation) of Rs. 120.15 crore (including capital work-in-progress, Intangible Assets under development and Intangible Assets), Investments of Rs. 250.87 crore, Cash & Bank Balances of Rs. 1427.40 crore and other assets of Rs. 868.74 crore.

7. RISK MANAGEMENT IN HUDCO

HUDCO has a prudent and efficient risk management framework. The Company has in place Risk Management Policy and Operating Manual in compliance with the directions given by National Housing Bank (NHB) for management of the various risks. The Company has implemented an integrated risk management approach through which it reviews and assess significant risks on a regular basis to ensure that there is a robust system of risk controls and mitigation in place. Major risks identified for the Company, being in lending operations, are credit risk, operational risk, liquidity risk, market risk, and foreign currency risk, etc.

In compliance with the SEBI (LODR) Regulations, 2015, the Company has in place a ‘Risk Management Committee' (RMC) which is headed by Part-time Official (Government) Director and comprises of Director (Corporate Planning) and Director (Finance) as its members. The Committee reviews the decisions/ recommendations of its three sub-committees namely:

• Assets & Liabilities Management Committee;

• Credit Risk Management Committee; and

• Operational Risk Management Committee

Assets & Liabilities Management Committee (ALCO) reviews the liquidity risks and ensures management of Assets and Liabilities mismatches through liquidity gap analysis, interest rate sensitivity analysis. The Assets Liabilities mismatch, if any, are being managed through the committed Bank lines, within the permissible limits as per NHB guidelines. During the year, 14 number of ALCO meetings were held.

Credit Risk Management Committee (CRMC) oversees and ensures that the credit policies are put in place and are consistently applied while appraising the proposal for sanction of loan and for ascertaining the credit worthiness of the applicant/ borrowing agency. During the year, 4 meetings of the CRMC were held.

Operational Risk Management Committee (ORMC) oversees and ensures the mitigation of operational risk both internal as well as external, like Technology risk, Employee risk, Customer risk, Capital Asset risk and External risk, etc., to which your Company is susceptible by establishing & strengthening internal control systems and procedures and by providing adequate training to the employees. During the year, 4 meetings of the ORMC were held.

Constant efforts were made by the Company for management and mitigation of the various risks which are briefly described as under:

a) Credit Risk

To manage credit risks associated with business, the Company has in place a strong and effective credit appraisal mechanism containing comprehensive appraisal techniques/ guidelines ensuring timely repayments of principal & interest amount.

b) Operational Risk

To manage the operational risks both internal as well as external associated with the operations of the Company like technology risk, employee risk, capital asset risk, external risk, etc., the Company has established a strong reporting and monitoring mechanism. The requisite information on the Operational risk is obtained through quarterly reports of ‘Operational risk Factors and Key Risk Indicator (KRIs) from Regional Offices/ departments which are further reviewed and analysed for mitigation of operational risk.

c) Liquidity Risk

For management of liquidity risk, the Company has effective Asset Liability Management System. The liquidity risk is being monitored with the help of liquidity gap analysis. Further, the funds are mobilized at competitive rates through various strategies viz. bonds, term loans, etc., and the mismatch in the Asset and Liabilities, if any, are managed through the committed Bank lines.

d) Market Risk

The various market risks arising from fluctuations in interest rates and foreign currency exchange rates are periodically reviewed by the Company. Further, based on cost of funds and market scenario, the lending rates are determined. The interest rate risk is being monitored with the help of interest rate sensitivity analysis under the Asset Liability Management System.

e) Foreign Currency Risk

The Company has a Foreign Currency Risk Management policy for mitigation of risks associated with Foreign Currency fluctuations. To cover the risks associated with exchange rate and interest rate, your Company has entered into hedging transactions. As on 31st March, 2021, the total foreign currency liabilities are USD 26.20 million (INR 180.49 crore) and JPY 870.53 million (INR 58.52 crore) and 50.90 % of the foreign currency exchange rate risk is covered through hedging instruments.

8. JOINT VENTURE, ASSOCIATE AND SUBSIDIARY COMPANY

As on 31st March, 2021, your Company has three Joint Venture(s) namely Pragati Social Infrastructure & Development Limited (PSIDL); Shristi Urban Infrastructure Development Limited (SUIDL); Signa Infrastructure India Limited (SIIL), one Associate namely; Ind Bank Housing Limited (IBHL) and do not have any subsidiary Company.

HUDCO had invested Rs. 2.14 crore in the Joint Venture Companies {PSIDL - Rs. 0.13 crore (26%), SUIDL-Rs. 2.00 crore (40%), and SIIL-Rs. 0.01 crore (26%)}. HUDCO has decided to exit from these Joint Ventures, as the performance of these Joint Ventures was not found to be satisfactory. The Company is in the process of exiting from these Joint Ventures.

In the case of IBHL, an associate Company, HUDCO has invested Rs. 2.50 crore, being 25% of its paid-up equity share capital and HUDCO is also exploring possibility to dilute its stake. The investment in HUDCO books is appearing at Rs. 1 only.

9. INTERNAL FINANCIAL CONTROL POLICY AND INTERNAL AUDIT

Your Company has adequate Internal Financial Controls (IFC) system for ensuring, the orderly and efficient conduct of its business, adherence with the laid down policies and procedures, safeguard of assets of the Company, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and the timely preparation of reliable financial information commensurate with the operations of the Company. The system also includes Risk Control Matrices and Process Flow Charts to depict the process to initiate, authorise, process, record and report transactions; the points within the process at which misstatements could occur; and control activities that are designed to prevent or detect such misstatements, including providing greater transparency to segregation of duties. The Chartered Accountant firm appointed for reviewing and testing of the operating efficiency of existing Internal Financial Controls has tested the overall controls and found them satisfactory and working effectively during the year. Being a continuous process, appropriate steps have been taken for further strengthening the Internal Financial Control Systems.

Internal Audit

Your Company has a separate Internal Audit Department and head Internal Audit directly reports to the Chairman & Managing Director. During the year under review, internal audit of all the Regional Offices and major divisions of the Corporate Office were outsourced and carried out by Chartered Accountant firms and by in-house internal audit team. Comprehensive Internal Audit at Regional Offices have been carried out by Chartered Accountant firms. The significant Internal Audit observations compiled by Internal Audit Department were put up for consideration of the Audit Committee. Necessary action as per the direction of the Audit Committee is taken by the Internal Audit Department. Directions have also been issued to all concerned for adherence to the policies, guidelines and procedures and for timely compliance of Audit Observation.

10. INFORMATION TECHNOLOGY

With a view to manage its business in a more professional and efficient manner both on operational and financial front, your Company is in process of implementing ERP (Enterprise Resource Planning) and E-office system both at its Head Office and Regional Offices spread all over the country.

HUDCO is implementing complete integrated solution with, required Network upgradation, IT security and Disaster Recovery arrangements for enabling faster decision making in its various segments like accounting, human resources, lending, business intelligent and beyond, in a secured data environment, for which it has appointed M/s Intellect Design Arena Ltd, as System Integrator, M/s Deloitte India as Project Management Consultant and M/s Inspira as its Infrastructure Managed Service Provider. All the layer(s) required for implementation of ERP system have been made broadly operational. In technology stack layer, Lending, GL & HRMS modules have been deployed and HRMS module has been made partially operational. Data migration and other activities are under process.

To support the ‘Green Initiatives' of Government of India and to make HUDCO, a paperless organization, your Company has taken initiative of implementing NIC's e-Office File Management System at Head Office, Regional Office - NCR and Human Settlement Management Institute (HSMI) and is in process of implementation in all other regional offices.

11. HUDCO - AN ISO 9001:2015 CERTIFIED COMPANY

HUDCO is an ISO 9001:2015 certified Company from National Accreditation Board for Certification Bodies (NABCB)/ United Accreditation Service (UKAS) through M/s United Registrar of Systems (URS) Certification Limited. The certification is valid for its major business processes covering Project and Retail Financing Services, Resource Mobilisation for funding, Consultancy Services through the Head Office and all Regional/Development Offices. Human Settlement Management Institute (HSMI) is also certified for Training, Research & Networking. HUDCO has implemented the revised framework of Quality Management System under ISO 9001:2015 for optimization of organizational effectiveness by introducing elements of robust risk framework policy in its appraisal process. Customer focus for continual improvements of system and processes is the key milestone business operations. QMS awareness cum audit training has been provided at Corporate Office, HSMI and various Regional Offices for HUDCO officials.

12. HUMAN SETTLEMENT MANAGEMENT INSTITUTE

During the financial year 2020-21, Human Settlement Management Institute (HSMI), the Research & Training Wing of HUDCO, has undertaken 44 Webinars/ Training Programmes covering 4712 professionals with following breakup:

a) 13 Webinars/ Training programmes for State Agencies/ ULB officials/ HUDCO officials covering 1247 participants;

b) 18 Webinars/ Online In-house Training programmes for HUDCO officials in the discipline of Law, Finance, Projects, IT and others

on various topics with 3073 participations;

c) 6 webinars for international participants of ITEC programme for 23 officers/ professionals from various countries;

d) 1 e-ITEC online Training Programme for 14 participants of Brunei Daru ssalam;

e) 4 Webinars/ Online Training programmes in association with CITYNET for 331 domestic/ international participants; and

f) 2 Training programmes in physical form for in-service officials sponsored by DoPT covering 24 participants.

Under HUDCO Chair Programme sponsored by HSMI during the year, one Research Study on ‘State of the Cities: India' has been completed by Institute of Social Sciences, New Delhi.

During the year 2020-21,10 agencies were awarded ‘Best Practices Awards' and 2 were awarded ‘Certificates of Appreciation' out of 127 entries under 7 themes of HUDCO Best Practices Awards to improve the living environment in the Habitat Sector. The total evaluation/ selection process was conducted on e-platform during the pandemic by a panel of jury comprising of eminent professionals. The awards were announced during the online celebration of World Habitat Day, 2020, organised by the Ministry of Housing and Urban Affairs, Government of India.

During the year, a special issue of ‘Coffee Table Book' with compilation of award-winning entries under best practices since introduction of the HUDCO Best Practices Award in 2011-12 was released on-line during World Habitat Day celebration by Hon'ble Minister of Housing and Urban Affairs, Government of India. Further, two issues of ‘Shelter' journal were released on-line in April & October, 2020.

13. HUMAN RESOURCES

Your Company has a multi-disciplinary talent pool of professional from Projects, Finance, Law, Information Technology, Human Resources, Public Relations, etc. HUDCO over the decades has evolved as a ‘knowledge organization' and people capability development for its diverse workforce continues to be priority area.

To sustain in this competitive dynamic market, the Company regularly arranges capacity-building programmes for its employees under various functional areas. However, 2020-21 was a year of pandemic, therefore to avoid the health hazard, the online mode was followed for imparting training during the year in different professional fields. There were 35 online training programmes conducted in various spheres relevant to Company operations and for up gradation of employee's skills. A special thrust on health talks and online interaction of employees with health expert was also conducted in view of the pandemic and overall well-being of the employees to draw a work life balance in such challenging times.

HUDCO has always been conscious of women empowerment and gender equality and this is reflected in its yearly celebration of Women's Day on 8th March. This year also, there was an interaction of the management with women employees at Corporate Office and Regional Offices (through online mode) by observing all pandemic protocols. A dedicated workshop was also organized on ‘Empowerment of Women through Spirituality'.

As on 31st March, 2021, HUDCO has a strength of 753 employees (comprising of 631 Executives and 122 Non-Executives) including 2 Functional Directors', 1 Chief Vigilance Offer and 229 women employees. The women employees constitute 30.41% of the total workforce. The Company maintains healthy, cordial and harmonious relations at all levels.

HUDCO has been complying with all the directives and guidelines issued by the Government of India regarding reservation for SC/ST/ OBC/PwD/ Ex-Servicemen/ EWS. As on 31st March, 2021, the category-wise details along with the percentage are as under:

Total Employees SC ST OBC PwD Ex-Servicemen
753 129 54 89 16 5
percentage 17.13 7.17 11.82 2.12 0.66

14. VIGILANCE

As per the directions of Central Vigilance Commission (CVC), Government of India, from time to time, the Corporate Vigilance Department (CVD) continued to strive for improving the systems and procedures and strengthen the mechanism to ensure pre-emptive actions and advising reformatory measures in the possible areas prone to corruption/financial irregularities as a part of preventive vigilance such as e-procurements; e-payments; creating general awareness amongst the officials; adoption of Integrity Pact wherever applicable; digitalization of system/process to avoid manual intervention, etc.

Vigilance Awareness Week was observed by the Company from 27th October to 2nd November, 2020, wherein various programmes were organized in the Head Office as well as at all the 21 Regional Offices throughout the Country. The programmes were the theme centric, declared by the CVC, i.e., ‘Vigilant India, Prosperous India'. During the year, one day on-line training programme on ‘Preventive Vigilance' was organized on 15th February, 2021 for the officials of HUDCO. During the year, routine and specific inspection of some Regional Offices was conducted which included random check of activities of Regional Office and specific examination of certain cases.

15. OFFICIAL LANGUAGE

During the year, your Company has taken various initiatives for progressive use of Rajbhasha Hindi in official work of HUDCO. To encourage the use of official language, HUDCO celebrated ‘Rajbhasha Fortnight' in the month of September, 2020 in its Corporate Office and Regional Offices throughout the Country.

During the period, online competitions and workshops were organized and the prize(s) of Rs. 1,69,000 were awarded to the winners of various components of HUDCO's Hindi promotional scheme Rajbhasha Utkarsh Yojna.

Further, Parliamentary Committee on Official Language inspected HUDCO's Corporate Office on 6th October, 2020. The Committee has expressed its satisfaction with some observations over the implementation of Official Language Policy in the Corporate Office. It is also referential to mention that our Thiruvananthapuram and Guwahati Regional Offices have won the first prize and Ahmedabad Regional Office has won the second prize respectively from their concerned Town Official Language Implementation Committees (TOLIC/Narakas) for the best execution of Official Language policy in these offices.

HUDCO's Corporate Office has published its e-magazine ‘Aawas Dhvani' besides, Bhopal, Dehradun, Jaipur, Raipur, Chandigarh, Mumbai, Bangalore, Bhubaneswar, Chennai, Kolkata and Thiruvananthapuram Regional Offices have also published their in-house magazine for promoting the official language in HUDCO system.

Department of Official Language (DoL), Ministry of Home Affairs, Government of India has assigned important responsibility to HUDCO for implementing Hindi in 50 PSU's located in Delhi through NARAKAS, DILLI UPKRM-2. With a view to promote Hindi and to achieve the target as set by DoL, NARAKAS has organized 55 Hindi promotional activities/ programmes, which include NARAKAS meetings, Sammelan, workshops, training programmes, competitions, seminars, award ceremony for the excellent work in Hindi. NARAKAS has been awarded with 3rd prize for the excellent performance in Hindi for the ‘A' region during 2019-20 by the DoL.

16. COMPLIANCES OF VARIOUS ACTS/ GUIDELINES

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

HUDCO has constituted an ‘Internal Complaint Committee' headed by a senior level woman official of the Company for redressal of complaints against sexual harassment of women employees in compliance of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Sexual Harassment in any form has been made as a misconduct under HUDCO (Conduct, Discipline and Appeal) Rules.

There was no complaint pending at the beginning of the year and no complaint was received during the year.

Public Grievance Redressal Mechanism of HUDCO

All matters related to Public Grievance(s), raised at Centralized Public Grievance Redress and Monitoring System (CPGRAMS) portal of Government of India and Grievance Registration & Information Database System (GRIDS) portal of National Housing Bank, have been dealt with by the Company in accordance with the laid down guidelines/procedures issued by Government of India and National Housing Bank respectively. The grievance redressal procedure of HUDCO has been further streamlined and appropriate grievance redressal mechanism and escalation matrix for receiving, registering and disposal has been put in place for each of its offices. During the year, all grievances have been resolved in a time bound manner.

Implementation of Micro, Small & Medium Enterprises (MSME) Policy

In compliance of the Public Procurement Policy for Micro and Small Enterprises issued by the Government of India vide Micro and Small Enterprises (MSEs) Order 2012, your Company, during the year 2020-21, has made procurement amounting to Rs. 5.54 crore from MSEs, constituting 59.98 % of its total annual procurement inclusive of 6.77% of procurement made from MSEs owned by SC/ ST entrepreneurs amounting to Rs. 0.062 crore. Further, your Company has made procurement from women entrepreneurs amounting to Rs. 0.031 crore, constituting 3.36% of the total procurement. The Company has made all the payments due to MSME's within the stipulated time period and there has been no delay.

Right to Information Act

HUDCO has set up an appropriate mechanism to comply with all RTI matters received under the Right to Information Act, 2005 and all matters pertaining to RTI during the year have been dealt within the time frame as prescribed therein.

In order to achieve efficiency and to function in a transparent manner, the Company has proactively suo moto disclosed information effecting larger Public Interests on its website, thus reducing the need for filling RTI applications under the RTI Act by individuals.

During the period under review, all matters within the ambit of RTI Act, 2005 have been dealt within the prescribed timelines and there has not been any instance of non-compliance by the Company. Further, no penalties / stricture / adverse remarks have been imposed w.r.t. RTI on the Company by any Statutory Authority.

17. DIRECTORS’ RESPONSIBILITY STATEMENT

As per requirement of section 134(5) of the Companies Act, 2013, your Directors' confirm that:

a) in preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same;

b) such accounting policies have been selected and applied them consistently (except for changes in accounting policies as disclosed in the Note to Accounts to the Financial Statements) and made judgments and estimates that are reasonable and prudent 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 the year under review;

c) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with provisions of Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the annual accounts have been prepared on a ‘going concern' basis;

e) the Company has laid down Internal Financial Controls to be followed and such internal financial controls are adequate and were operating effectively; and

f) proper systems have been devised to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

18. MANAGEMENT DISCUSSION & ANALYSIS REPORT

In terms of the SEBI (LODR) Regulations, 2015 and DPE guidelines, Management Discussion & Analysis Report for the year ended 31st March, 2021, is annexed and forms part to this report.

19. CORPORATE GOVERNANCE

In compliance of the SEBI (LODR) Regulations, 2015 and DPE guidelines on Corporate Governance, a report on Corporate Governance together with certificate from Malhotra Arora & Associates, Company Secretaries in Practice, regarding compliance of the conditions of Corporate Governance is annexed and forms part to this report.

20. BUSINESS RESPONSIBILITY REPORT

In terms of regulation 34(2) of the SEBI (LODR) Regulations, 2015, the ‘Business Responsibility Report' for the year ended 31st March, 2021 is annexed and forms part to this report.

21. DIRECTORS AND KEY MANAGERIAL PERSONNEL

HUDCO, being a Government Company, where power to appoint Chairman & Managing Director, Whole Time Directors', Government Nominee Directors' and Independent Directors' on the Board of the Company, is vested with the President of India, and the same is exercised through the Administrative Ministry, i.e., Ministry of Housing and Urban Affairs (MoHUA), Government of India.

During the year under report, following changes took place in the composition of the Board of Directors:

Chairman & Managing Director (CMD)

a) Shri M. Nagaraj, (DIN: 05184848), Director (Corporate Planning) was assigned the current charge of the post of CMD, HUDCO by MoHUA, Government of India in two spells of three months each, i.e., from 7th January, 2020 to 6th April, 2020 and from 27th May 2020 to 26th August, 2020 respectively;

b) Shri Shiv Das Meena, I.A.S. (DIN: 01881010), Additional Secretary, MoHUA, Government of India, was assigned the additional charge of the post of CMD, HUDCO by the MoHUA, Government of India during the period with effect from 21st April, 2020 to 18th May, 2020; and

c) Shri Kamran Rizvi, I.A.S. (DIN: 01653503), Additional Secretary, MoHUA, Government of India, was assigned the additional charge of the post of CMD, HUDCO by the MoHUA, Government of India for a period of six month with effect from 22nd October, 2020 who was subsequently appointed as an Additional Director in terms of section 161 of the Companies Act, 2013 and Articles of Association of the Company.

Part-time Non-official (Independent) Director

Smt. Pratima Dayal (DIN: 06992866) and Dr. Sudip Kumar Nanda (DIN: 00315376) ceased to be Part-time Non-official (Independent) Director(s) with effect from 18th April, 2020 on completion of their term as per terms and conditions of their appointment.

As per requirements of section 152 of the Companies Act, 2013 [including any statutory modification(s) or re-enactment(s) thereof, for time being in force, read with the applicable rules, as amended] and Articles of Association of the Company, Shri M. Nagaraj, (DIN: 05184848), Director (Corporate Planning) being longest in office among the Directors' since his last appointment, is liable to retire by rotation and being eligible, offers himself for reappointment at the ensuing Annual General Meeting.

After the closure of the financial year under report, MoHUA, Government of India vide order dated 1st July, 2021 has extended the additional charge of the post of CMD, HUDCO assigned to Shri Kamran Rizvi, I.A.S., Additional Secretary, MoHUA, Government of India, for a further period of 6 months with effect from 22nd April, 2021 or till appointment of a regular incumbent to the post, or until further orders, whichever is the earliest;

Your Board placed on record its sincere appreciation for the valuable contribution made by outgoing Directors' during their association/ tenure with the Company and extended a warm welcome to new Directors' for being part of HUDCO Board.

The Board of Directors of your Company recommends reappointment of Shri M. Nagaraj, (DIN: 05184848), Director (Corporate Planning), and Shri Kamran Rizvi as Chairman & Managing Director (Additional Charge) for approval of the members at the 51st Annual General Meeting, on the same terms and conditions as approved by the President of India.

Pursuant to the provisions of Section 149(6) of the Companies Act and Regulation 16(1)(b) of the SEBI (LODR) Regulations, 2015, declaration from the Independent Directors' could not be obtained, since, the Company does not have any Independent Director on its Board.

Based on the confirmation received from Directors', none of them are disqualified for being appointed/ reappointed as directors in terms of Section 164 of the Companies Act, 2013 and other applicable laws, if any and are not related to each other.

KEY MANAGERIAL PERSONNEL

The details of Key Managerial Personnel including changes occurred during the year and thereafter are as under:

Sl. Name of Key Managerial Personnel No. Designation
1. Shri Muniappa Nagaraj (From 07.01.2020 to 06.04.2020 & 27.05.2020 to 26.08.2020 ) Chairman & Managing Director (Current Charge)
2. Shri Shiv Das Meena (From 21.04.2020 to 18.05.2020) Chairman & Managing Director (Additional Charge)
3. Shri Kamran Rizvi (From 22.10.2020 onwards) Chairman & Managing Director (Additional Charge)
4. Shri Muniappa Nagaraj Director - Corporate Planning
5. Shri D. Guhan Director - Finance & Chief Financial Officer
6. Shri Harish Kumar Sharma Company Secretary

22. SECRETARIAL AUDITORS & AUDIT REPORT

In compliance of section 204 of the Companies Act, 2013 and rules made thereunder, M/s Malhotra Arora & Associates, Company Secretaries in Practice, has been appointed as Secretarial Auditors for the financial year 2020-21.

Secretarial Audit Report given by the Auditors confirming compliance to the applicable provisions of the Companies Act, 2013, SEBI (LODR) Regulations, 2015 and other applicable laws. They have referred to certain observations, which are selfexplanatory.

23. AUDITORS & AUDITORS REPORT

As per section 139(5) of the Companies Act, 2013, the Statutory Auditors of your Company is appointed by Comptroller and Auditor General of India (CAG). M/S APRA & Associates LLP, (regd. no. DE2438), Chatered Accountants, New Delhi has been appionted as Statutory Auditors of your Company for the financial year 2021-22 by the CAG.

M/s Prem Gupta & Co., Chartered Accountants (firm reg. no. 000425N), New Delhi, the Statutory Auditors had conducted the audit of the financial statements (both standalone and consolidated) for the financial year 2020-21 and submitted their report thereon. The comments of the Statutory Auditors on the financial statements along with management reply thereon are annexed and forms part of the report. Notes on financial statement referred to in the Auditors Report are self-explanatory.

Comments of Comptroller and Auditor General of India (CAG)

The comments of the CAG on the audited financial statements (both standalone and consolidated) for the financial year 2020-21 under section 143 of the Companies Act, 2013 are in process and will be made part of the Director's Report by way of addendum, along with management reply, thereon, if requires.

24. STATUTORY DISCLOSURES

(i) Corporate Social Responsibility Committee

As on 31st March, 2021, the composition of ‘Corporate Social Responsibility' Committee of the Board, consists of three members namely: Shri M. Nagaraj, Director (Corporate Planning), Shri Amrit Abhijat, Part-time Official (Government) Director and Shri D. Guhan, Director (Finance). The Committee was headed by Director (Corporate Planning).

In the absence of Independent Directors', the Committee was constituted from the available Board members as process of appointment of Independent Director(s) is in process with the Ministry of Housing and Urban Affairs, Government of India, being the Administrative Ministry and appointing authority. On appointment of Independent Directors', the Committee will be reconstituted to make its composition in conformity with the provisions of the Companies Act, 2013.

The Corporate Social Responsibility Policy (CSR Policy) of the Company laying down the guidelines and the activities to be undertaken by the Company is available on Company's website at the following link: https://www.hudco.org/writereaddata/ csrpolicy.pdf

During the year, the Company has spent/released a total amount of Rs. 7.44 crore on CSR activities, however, based on utilization certificate received from the agencies, an amount of Rs. 5.74 crore has been booked in the financial statements as an amount utilized during the financial year 2020-21.

In compliance with the Ministry of Corporate Affairs, Government of India notification dated 22nd January, 2021, the Company has transferred an amount of Rs. 80,19,41,235/- to the Special Account opened with State Bank of India named as ‘Unspent Corporate Social Responsibility Account' being the unspent amount out of total amount available/allocated for the CSR activities within the schedule time.

Further, the requisite amount not relating to ongoing projects, i.e., with respect to projects which have been closed /not been sanctioned out of allocated CSR budget will be transferred to a fund specified in Schedule VII of the Companies Act, 2013 within the stipulated time period, i.e., up to 30th September, 2021.

The Annual Report on CSR activities for the financial year 2020-21 giving reasons as to non-spending of entire amount earmarked for CSR activities along with other details is annexed hereto forming part of the Directors' Report;

(ii) Board and its Committees

The details as to the composition of the Board and its various Committees, scope & terms of reference, number of meetings held and attended by directors/members during the year along with other particulars are given in the annexed Corporate Governance Report, forming part to this report;

(iii) Particulars of Loans, Guarantee or Investments

The necessary disclosures with respect to loan made, guarantee given or securities provided by the Company in its ordinary course of business have not been given, since, provisions of section 186 of the Companies Act, 2013, are not applicable to your Company, being a Housing Finance Company. The detail with respect to investments made by the Company forms part of the financial statements for the year 2020-21;

(iv) Extract of Annual Return

In compliance of section 92(3) of the Companies Act, 2013 read with the rules made thereunder, the extract of Annual Return as at 3151 March, 2021 is annexed and forms part to this report. The same may also be assessed at Company website at:

https://www.hudco.org//Site/FormTemplete/frmTemp1PLargeTC1C P.aspx?MnId=391&ParentID=326

(v) Energy Conservation, Technology Absorption and Foreign Exchange Earning & Outgo.

Energy Conservation and Technology Absorption

There are no significant particulars, relating to conservation of energy and technology absorption as your Company does not own any manufacturing unit/ facility.

As HUDCO is an energy conscious organization and is fully committed to support the Government of India programmes towards conservation of energy, for which it has taken number of measures/initiatives on continuous basis towards conservation and optimum utilization of energy in all its offices like replacing CFL with LED lights, maximum use of natural lights in its day-to-day operations and replacement of high-power consuming equipment's with low energy consuming equipment's.

During the year, the Company has not absorbed any technology indigenous/ imported. Further, no technology was imported during the last three years.

Foreign Exchange Earnings and Outgo

During the year, the inflow on account of foreign exchange transaction was Rs. 1.18 crore (previous year Rs. 2.82 crore) while foreign exchange outgo/ expenditure was Rs. 3.30 crore (previous year Rs. 7.08 crore);

(vi) As per notification dated 5th June, 2015, issued by the Ministry of Corporate Affairs, Government of India, Government Companies are exempted from complying with provisions of section 197 of the Companies Act, 2013. As your Company is a Government Company, hence, such particulars have not been included as part of the Directors' Report;

(vii) During the financial year, all the existing related party transactions were on an arm's length basis and were in the ordinary course of business. There are no materially significant related party transaction(s) made by the Company, which may have a conflict with the interest of the Company. Further, there was no contract or arrangement entered into by the Company as listed under section 188 of the Companies Act, 2013;

(viii) The Company has followed the applicable Secretarial Standards issued by Institute of Company Secretaries of India (ICSI);

(ix) There is no change in the nature of business of the Company during the year;

(x) There are no significant and material orders passed by the Regulators or Courts or Tribunals impacting the going concern status and operations of your Company in future;

(xii) As per notification dated 5th June, 2015, issued by the Ministry of Corporate Affairs, Government of India, Government Companies are exempted from complying with provisions of section 178(3) of the Companies Act, 2013 with respect to matters pertaining to Company's Policy on Directors'' appointment and remuneration including criteria for determining qualifications, positive attributes, independence of a director and other matters provided therein;

(xiii) The Auditors have not reported any material case of frauds by the Company or on the Company by its Officers or Employees under section 143(12) of Companies Act, 2013, hence, disclosure under section 134(3)(ca) of the Act, is not required;

(xiv) Pursuant to the requirements of SEBI (LODR) Regulations, 2015, and DPE Guidelines on Corporate Governance, all the Board members and Senior Management personnel have affirmed compliance with the Code of Conduct for the financial year ending 31st March, 2021. A declaration made by Chairman & Managing Director in this regard is annexed and forms part of this report; and

(xv) As per regulation 25(10) of the SEBI (LODR) Regulations, 2015, top 500 listed Companies are required to have Directors' & Officers Insurance for all Independent directors with effect from 1st October, 2018. HUDCO had in place D&O Policy for Independent Directors' valid up to 11th March, 2021. As, HUDCO does not have any Independent Director on its Board since, 18th April, 2020, for appointment of whom request has been made to the Ministry of Housing and Urban Affairs, Government of India, being the Administrative Ministry and Appointing Authority and the same is in process, hence, the insurance policy for Independent Directors' has not been obtained and the process for obtaining the same will be initiated on appointment of Independent Directors' by the Administrative Ministry.

25. FUTURE OUTLOOK - MEDIUM AND LONG TERM STRATEGIES

The rampant spread of COVID-19 pandemic has disrupted the economy of the World at large, to which India is not an exception. The World Bank and Credit Rating agencies have downgraded India's growth for the fiscal 2021. HUDCO, being a leading housing finance Company supporting housing and housing related infrastructure activities, have impacted on its operations post COVID-19 pandemic.

The future outlook both medium and long-term strategies are summarised hereunder:

a) The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission has been allocated Rs. 7,300 crore in the budget estimates of 2021-22; HUDCO will make all out efforts to tap potential business for viability gap funding;

b) Inadequacies in health infrastructure during COVID-19 pandemic posed lot of challenges to administration all over the Country, which necessitates most modern and newer health facilities all over Country, HUDCO would continue to fund Social Infrastructure Projects like Health Center, Government Hospitals, Medical Colleges, etc., being a priority sector lending for HUDCO, as the State Governments would be requiring huge funds to expand their Health Care Infrastructure;

c) HUDCO may fund Urban Metro Rail projects of all major cities, as the Government is keen to expand the metro network in different cities and looking for external participation for such projects;

d) The Government of India has launched for ‘Swach Bharat Mission- 2.0' (SBM-2) with an allocation of Rs. 1.41 lakh crore for five years from 2021 till 2026, to focus on safe sanitation, water harvesting and recycling. ‘Swach Bharat Mission' a flagship program of Government of India, where, HUDCO has not funded any project under this mission and State Governments will be approached for financing such projects;

e) As part of the Pradhan Mantri Awas Yojana (PMAY) - Urban, Housing for All, a flagship program of Ministry of Housing and Urban Affairs, Government of India, HUDCO is providing all the necessary support like appraisal and monitoring of projects in various States. Further, for meeting the funds requirement of State/Urban Local Bodies (ULB) share in projects under PMAY also, HUDCO is offering loan assistance to meet the gap beyond the grant available from Government of India. As a nominated Central Nodal Agency (CNA) for CLSS, HUDCO is committed in making the scheme a grand success, so that a large number of beneficiaries avail the subsidy under the programme and are able to fulfill their dream of owning a house of their own; and

f) Smart city project is one of the diversified fields in the core infrastructure sector for HUDCO financing. An allocation of Rs. 6450 crore has been made for this mission in the Union budget of 2021-22. Further, Nitti Aayog has also envisaged that Private investment needs to be encouraged in infrastructure through a renewed public-private partnership (PPP) mechanism on the lines suggested by the Kelkar Committee. These opportunities can be utilized by HUDCO, by encouraging funding to entities, which are promoted by government or backed by the government.

26. STATUTORY AND OTHER INFORMATION REQUIREMENT

The various information, required as per the Companies Act, 2013, Securities and Exchange Board of India (Listing Obligations and

Disclosures Requirement) Regulations, 2015 and DPE guidelines are annexed to this report are as under:

Particulars Annexure
Management Discussion & Analysis Report 1
Corporate Governance Report 2
Business Responsibility Report 3
Secretarial Audit Report 4
Annual Report on CSR Activities 5
Extract of Annual Return 6
Declaration of the Code of Conduct 7
Management Reply to the comments of the Statutory Auditors on the financial statements 8
Comments of the Comptroller and Auditors General of India 9

27. ACKNOWLEDGEMENTS

The Board of Directors of your Company expresses their sincere gratitude to the Government of India, especially the Ministry of Housing and Urban Affairs, Ministry of Rural Development, Ministry of Finance, Reserve Bank of India, National Housing Bank, Ministry of Corporate Affairs, Department of Public Enterprises, Regulatory/ Statutory Authorities and various other departments of the Central/ State Governments for the continued guidance, co-operation, and support.

The Board also expresses its gratitude to the Shareholders, bondholders, public deposit holders, Bankers, Financial Institutions, the State Governments, Housing Boards, Development Authorities, Municipal/Local Bodies and other Borrowers, etc., for their confidence and trust with the Company.

The Board also wish to place on record its thanks to BSE Limited, National Stock Exchange of India Limited, National Securities Depository Limited, Central Depository Services (India) Limited, Credit Rating Agencies, Registrar & Transfer Agents and other agencies for extending their continued cooperation and support.

The Board also thanks the Comptroller & Auditor General of India, Statutory Auditors, Secretarial Auditors and other professionals associated with the Company for providing their valuable contribution.

The Board of Directors would also like to place on record its sincere appreciation for the continued and unstinting efforts put in by the dedicated employees at all levels towards the growth of the Company.

For and on behalf of the Board of Directors
Sd/-
Kamran Rizvi
Chairman & Managing Director
Place : New Delhi (DIN: 01653503)
Dated : 6th September, 2021

   

Housing & Urban Development Corporation Ltd Company Background

KAMRAN RIZVIKAMRAN RIZVI
Incorporation Year1970
Registered OfficeHUDCO Bhavan Core 7-A,India Habitat Centre Lodhi Rd
New Delhi,New Delhi-110003
Telephone91-11-24649610-27,Managing Director
Fax91-11-24648427
Company SecretaryHarish Kumar Sharma
AuditorA P R A & Associates LLP/Prem Gupta & Co
Face Value10
Market Lot1
ListingBSE,NSE,
RegistrarAlankit Assignments Ltd
3E/7 Jhandewalan ,Extension , ,New Delhi - 110055

Housing & Urban Development Corporation Ltd Company Management

Director NameDirector DesignationYear
Harish Kumar Sharma Company Secretary 2021
Amrit Abhijat Nominee (Govt) 2021
M Nagaraj Director (Corporate Planning) 2021
SHYAM SUNDER DUBEY Nominee (Govt) 2021
D Guhan Director (Finance) & CFO 2021
KAMRAN RIZVI Chairman & Managing Director 2021
Ravindra Kumar Ray Non Official Independent Direc 2021
Sabitha Bojan Non Official Independent Direc 2021
Siyaram Singh Non Official Independent Direc 2021
Banshilal Gurjar Non-official Director 2021

Housing & Urban Development Corporation Ltd Listing Information

Listing Information
BSE_500
BSE_PSU
CNX500
BSESMALLCA
BSECPSE
BSEALLCAP
BSEFINANCE
SML250
MSL400
NFTYMC150
NFTYMSC400
NFTYSC250
NF500M5025

Housing & Urban Development Corporation Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest Rs.0007516.55
Rental Income Rs.00035.54
Fee Income Rs.0006.27
Service Charges Rs.0003.95
Dividend Rs.0003.79
Management Development ProgramNA 0001.13
Overhead Chargeon ConstructionNA 0000.07
Dividends NA 0000
Income from Investment Rs.0000
Consultancy Rs.0000
Profit on Sale of Investments Rs.0000
Gain on Foreign Currency FluctRs.0000
Other income on Bonds (Fees) Rs.0000
Other income on loans (Fees) Rs.0000
Other Operating Income NA 0000
Project Fees Income Rs.0000
Project Income Rs.0000
Income from Invest. Operation NA 0000
Documentation Charges Rs.0000

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