Hindustan Aeronautics Ltd
Chairman Speech
Dear Shareholders,
It is my privilege to extend a very warm welcome to you all for the 59th
Annual General Meeting of your Company.
The past two years have been a period of intense action and reflection.
We have seen a global pandemic, geopolitical tensions, supply chain disruptions and other
public and private upheavals. As the situation improved, I believe we are standing at the
threshold of a period of great opportunity and growth.
The financial year 2021-22 was challenging for each one of us. During
the second and third wave of COVID, your Company had taken adequate preparatory measures
and strict safety protocols was in place, due to which the business activities of the
Company could continue as usual.
I take this opportunity to share the performance highlights during the
year and future outlook for the Company.
Financial and Performance Highlights of the Year
In the financial year 2021-22, your Company recorded the highest ever
turnover of Rs. 24,36,166 Lakh, experiencing strong growth of 8% from the previous year's
Rs. 22,50,096 Lakh. The Profit Before Tax (PBT) saw a growth of 22% from Rs. 4,27,738 Lakh
to Rs. 5,23,115 Lakh while the Profit After Tax (PAT) increased by 57% from Rs. 3,23,945
Lakh to Rs. 5,08,650 Lakh. Our Order Book position stood at a healthy Rs. 82,15,400 Lakh
as on 31st March, 2022.
The Company has paid 1st & 2nd interim
Dividend of Rs.14 per share and Rs. 26 per share respectively of Rs.10 each for the
Financial Year 2021-22, totalling to Rs.1,33,755 Lakhs. Further, the Board of Directors of
the Company has recommended a final dividend of Rs. 10 per share of Rs. 10 each for
approval of shareholders. On approval of the Final Dividend by the shareholders, total
cash outflow for payment of dividend would be Rs. 167,194 Lakh.
During the year, the Company has produced 34 numbers of new Aircraft
and Helicopters, covering LCA Tejas, Dornier Do- 228, ALH Dhruv and Light Combat
Helicopter (LCH) in addition to the production of 80 New Engines and Accessories, at its
various Divisions. The Company has also overhauled 207 Aircraft / Helicopters and 506
engines during the year.
Your Company is deeply dedicated towards manufacturing of indigenous
aircraft and helicopter under Atmanirbhar Bharat and to achieve greater milestones in
coming years. In fact, out of the 34 new platforms manufactured during the year, 30 are of
indigenously designed and developed. As a continuous pursuit towards greater
self-reliance, imported LRUs, systems, components etc fitted on indigenous platforms are
being taken up for indigenization under various routes through in-house as well as private
industry involvement under Make I, Make II etc. In FY 2021-22, a total of 1412 items have
been indigenized.
Significant Achievements
Your Company has witnessed several significant achievements during the
year, some of which are highlighted as under:
• In a major boost to Atmanirbhar Bharat Mission, HAL has bagged a
contract for production and supply of 15 Light Combat Helicopters (LCH) on 30th
March, 2022.
• The green field helicopter factory of HAL at Tumakuru is in
place, with stage 1 & stage 2 infrastructure facilities at an investment of Rs. 47,637
Lakh by the company, to take up manufacture of Light Utility Helicopters (LUH) and other
future platforms with an initial capacity of 30 helicopters per annum.
• The Company has completed the investment of Rs. 1,20,000 Lakh as
part of UP Defence Industrial Corridor (UPDIC) towards enhancement of capacity &
capability at Lucknow, Korwa and Kanpur Divisions of HAL and Naini Aerospace Limited, a
wholly owned subsidiary of HAL.
• The Hindustan-228 aircraft, a civil version of Do-228 had its
first flight on 26th December, 2021 and attained Type Certification from DGCA
on 19th May, 2022. It is the first project Type Certified by DGCA in civil
commuter role.
• As a major step towards civil operations, HAL signed a lease
agreement with Alliance Air Aviation Limited on 26th September, 2021 for the
supply of two Civil Do-228 aircraft for regional operations in Arunachal Pradesh, aimed at
giving boost to India's Regional Connectivity Scheme (RCS). Commercial operations
commenced with the first flight on the Dibrugarh-Pasighat route on 12th April,
2022.
• In-line with Government's vision to boost defence exports to
friendly foreign countries, HAL has signed contracts with Government of Mauritius (GoM)
for supply of one Passenger Variant Do-228 (PVD) on 10th September, 2021 and
for one Advanced Light Helicopter (ALH) Mk III helicopter on 19th January,
2022. Further, HAL also completed the production and delivered this Do-228 PVD to
Mauritius on 6th April, 2022 within a record time of six months from contract
conclusion.
• The heaviest Semi-Cryogenic propellant tank ever fabricated by
HAL was delivered to Indian Space Research Organization (ISRO) on 5th October,
2021.
• The 83 LCA MK1A program attained a major milestone with the
first flight of the prototype held on 20th May, 2022.
• HAL delivered the first set of hardware for Gaganyaan mission
(first unmanned mission) as well as the 150th HAL made Satellite Bus-structure
to Indian Space Research Organization (ISRO) on 4th April, 2022.
New initiatives
During the year, your Company has taken many new initiatives.
Some of the major initiatives are as under:
- HAL has launched new platform design and development programmes such
as Combat Air Teaming System (CATS) Warrior, Hindustan Lead in Fighter Trainer HLFT-42,
High Altitude Pseudo Satellite (HAPS), Utility Helicopter-Maritime, Deck Based Multi Role
Helicopter (DBMRH).
- HAL has signed an MoU with Rolls-Royce on April 9, 2021 to explore
the potential opportunity of HAL to become a "Build to Print" supplier for the
MT30 (Gas Turbine) package for sales within the Indian market.
- HAL has signed an agreement with Rolls-Royce on September 14, 2021
for Make-in-India Adour engine parts to support Rolls-Royce's international defence
customer base.
- HAL and ZeroAvia entered into a development collaboration agreement
on 9th November, 2021 for hydrogen-electric powertrain capable of flying the 19
seat Dornier 228 aircraft up to 500 NM.
- HAL has signed an MoU with Max AeroSpace & Aviation Pvt. Ltd,
Mumbai on 12th January, 2022 to explore business opportunities for MRO of civil
aircraft. Both HAL and Max AeroSpace will focus on exploring the business for components
and engine / Auxiliary Power Units (APUs), which is currently going outside India for
maintenance.
- HAL has signed an MoU with Uganda Peoples Defence Forces (UPDF) on 3rd
March, 2022 towards Co-operation for Repair, Overhaul and maintenance, supply of spares
etc for Su-30 Mk2 of UPDF.
- HAL has signed an MoU with Safran Helicopter Engines (SafranHE) on 14th
March, 2022 for exploring business opportunities in the area of Helicopter Engines,
consistent with the goals of the Government of India's "Atmanirbhar Bharat"
/Make in India initiative.
- HAL has entered into a MoU with Israel Aerospace Industries (IAI) on
4th April, 2022 to convert Civil (Passenger) aircraft to Multi Mission Tanker
Transport (MMTT) aircraft in India. Under the pact, HAL will convert pre-owned Civil
(Passenger) aircraft into air refueling aircraft, cargo and transport capabilities.
- Your Company had appointed M/s Boston Consulting Group (BCG) for
providing strategic advisory services for devising a business cum long term growth plan.
The Consulting firm carried out the study and submitted a draft report which is under
review.
Future Outlook
- Aerospace and Defence industry is passing through an exciting time in
which companies are focusing on technology advancements and operational efficiencies. It
is expected that advancements in UAVs, Aero-engines and EHPA (Electric and Hybrid
Propulsion Aircraft) technologies are going to set the future path for the industry,
whereas Industry-4.0, Additive Manufacturing, Digitalization, Artificial Intelligence,
Augmented and Virtual Reality tools are going to be efficiency drivers.
- Contributing to the "Atmanirbhar Bharat" mission, HAL has
been consistently involved in developing an aerospace ecosystem for achieving
self-reliance in Defence. The Company is also playing a role in capability development in
the country and promoting employment generation in Aerospace & Defense Sector by
handholding the vendors and suppliers.
- While the Indian Defence market will continue to be a prime revenue
source for HAL due to projects like LCA Mk1A, LCH, LUH and HTT-40, we are preparing
ourselves to have differentiated products and services, required in the future, by making
our systems more agile, effective and cost efficient. The futuristic projects such as LCA
MkII, Twin Engine Deck Based Fighter (TEDBF), Advance Medium Combat Aircraft (AMCA),
Indian Multirole Helicopter (IMRH), Aero Engines etc., will ensure the technological lead
of HAL in the years to come.
- To boost the growth of the Company, HAL is focusing on the
International Market, Civil Aviation, Civil MRO, UAVs and other diversified business
opportunities through indigenous efforts and business collaborations with Indian Private
Industry/global OEMs.
Research and Development (R&D)
Your Company has continued its efforts towards the Design and
Development of new platforms/ products / technologies and activities to enhance its
capability with a view to bring technological superiority to its products and to cope up
with the future technological challenges. These efforts have resulted in major
achievements such as successful demonstration of deck based operations capability and
integration of Medical Intensive Care Unit (MICU) etc on ALH MkIII, the capability of IJT
to carry out six turn spins, completion of the erect spin certification flight trials on
HTT-40, successful integration of lithium-ion main battery following flight trial on
HTT-40, use of lithium-ion battery for military aviation is first in the continent.
Towards the progress of various R&D efforts, the company has incurred a total
expenditure of Rs. 1967 Crore in the year 2021-22, which is 8% of the turnover as against
7.50% of turnover in the previous year.
Corporate Governance
Your Company always strives to attain the highest standard of Corporate
Governance practice. The Company has complied with the Guidelines on Corporate Governance
framed by the Department of Public Enterprises (DPE) and SEBI Listing Regulations except
for the appointment of the requisite number of Independent Directors. The Company has
established Systems and Procedures to ensure that its Board of Directors is well informed
about the Policies of the Company, to enable them to discharge their responsibilities and
to enhance the overall value of all stakeholders. We are constantly reviewing the Policies
and Procedures of the Company and updating them to ensure transparency in all aspects of
the Company's working.
Corporate Social Responsibility and Sustainability Development
As always, your Company is committed to social responsibility. We have
undertaken various programmes and projects, towards integrating our social and business
goals in a sustainable manner in line with schedule VII of the Companies Act, 2013. An
amount of Rs 7,827 Lakh has been spent under CSR in the Financial Year 2021-22 and Rs. 300
Lakh has been deposited in the Unspent CSR Account against the CSR budget/ obligation of
Rs.8,100 Lakh.
Acknowledgement
Your Company will continue to pursue global standards, and I am
confident that the Company will achieve many milestones. We hope to attain all round
success with the continued support and guidance of all our stakeholders.
I take this opportunity to extend my sincere gratitude to the
Department of Defence Production, Defence Acquisition Council, Defence Finance, Department
of Civil Aviation and our valuable customers viz., the Indian Air Force, Army, Navy, Coast
Guard, Border Security Force, ISRO and other Global Aviation Companies.
I also thank DGAQA, CEMILAC, Principal Controller of Defence Accounts,
Principal Director of Commercial Audit, C&AG, Auditors, Bankers, Legal Advisors,
Collaborators, Suppliers, Shareholders and other Agencies and acknowledge their
contributions in our achievements.
I am grateful to my colleagues on the Board for their valuable guidance
and acknowledge the immense contribution and dedication of the employees of the Company at
all levels.
jai hind
| Place : Bengaluru |
R. Madhavan |
| Date : July 15, 2022 |
Chairman and Managing Director |
Hindustan Aeronautics Ltd
Directors Reports
Dear Members,
Your Board of Directors takes great pleasure in presenting the 59th
Annual Report on the performance of your Company ("the Company" or
"HAL"), and its Audited Financial Statements for the Financial Year ended March
31, 2022, together with Reports of the Statutory Auditors and the Comptroller &
Auditor General of India (C&AG) thereon.
FINANCIAL HIGHLIGHTS
The financial highlights for the year ended March 31, 2022 are
summarised as under:
(Rs in Lakh except per equity share data)
| PARTICULARS |
2021-22 |
2020-21 |
| Turnover |
24,36,166 |
22,50,096 |
| Exports |
16,796 |
23,980 |
| Profit Before Tax (PBT) |
5,23,115 |
4,27,738 |
| Provision for Tax |
14,465 |
1,03,793 |
| Profit After Tax (PAT) |
5,08,650 |
3,23,945 |
| R&D Expenditure |
1,96,691 |
1,68,740 |
| Earnings/ Share (In Rs) |
152.11 |
96.88 |
| Book Value / Share (In Rs) |
576.10 |
459.59 |
During the year under review, the turnover of the Company increased by
8% to Rs 24,36,166 Lakh from Rs 22,50,096 Lakh of the previous year. The Profit before Tax
for the year increased by 22% to Rs 5,23,115 Lakh from Rs 4,27,738 Lakh in the previous
year. The Profit after Tax (PAT) increased by 57% to Rs 5,08,650 Lakh from Rs 3,23,945
Lakh in the previous year.
PRODUCTION HIGHLIGHTS
During the year, the Company has produced 34 numbers of new Aircraft
and Helicopters, covering LCA Tejas, Dornier Do- 228, ALH Dhruv and Light Combat
Helicopter (LCH) in addition to the production of 80 New Engines and Accessories, at its
various Divisions. The Company has also overhauled 207 Aircraft / Helicopters and 506
engines during the year.
ORDER BOOK POSITION
During the year, the Company has bagged a contract for production and
supply of 15 Light Combat Helicopters (LCH) on March 30, 2022.
The Order Book position of the Company stands at Rs 82,15,400 Lakh as
on March 31, 2022.
DIVIDEND
During the year, your Company has declared and paid 1st interim
dividend of Rs 14 per share of Rs 10 each (140 %) for the financial year 2021-22,
amounting to Rs 46,814 Lakh.
Further, the Company has also declared and paid 2nd interim
dividend of Rs 26 per share of Rs 10 each (260 %) for the financial year 2021-22,
amounting to Rs 86,941 Lakh.
The Board of Directors of the Company has recommended a final dividend
of Rs 10 per share of Rs 10 each to comply the Guidelines of Department of Investment and
Public Asset Management (DIPAM) on Capital restructuring with respect to payment of
minimum dividend. The Final Dividend if approved by the shareholders, would involve cash
outflow of Rs 33,439 Lakh.
Thus, the total dividend including final dividend for the financial
year 2021-22 would be Rs 50 per equity share (500%), amounting to Rs 167,194 Lakh.
In terms of the provisions of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 [SEBI (LODR) Regulations] and
the Guidelines of DIPAM, your Company has formulated a Dividend Distribution Policy and
the same is available on the Company's website at https://hal-india.
co.in/Common/Uploads/DMS/Dividend Distribution Policy.pdf
RESERVES
During the year under review, Rs 31,596 Lakh was transferred to
Research & Development Reserve and Rs 3,57,986 Lakh to General Reserves.
BORROWINGS
As on March 31,2022, the short term and long term borrowings of the
Company was Nil.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations. The Company has in place adequate internal
financial controls for ensuring efficient conduct of its business. A detailed note on
internal financial controls is provided in the Management Discussion and Analysis Report.
LOANS, GUARANTEES AND INVESTMENTS
Details of Loans, Guarantees and Investments as covered under the
provisions of Section 186 of the Companies Act, 2013 form part of Notes to the Financial
Statements.
RELATED PARTY TRANSACTIONS
During the year, your Company has entered into transactions with
related parties. In line with Related Party Transactions (RPTs) Policy, approval of the
Audit Committee and Board, as the case may be was obtained for RPTs. As per the threshold
mentioned in the Policy, there were no material related party transactions with the
Company's Promoters, Directors, Management or their relatives, which could have had a
potential conflict with the interests of the Company. The disclosures related to RPTs in
accordance with the applicable accounting standards are provided in Clause No. 45A of the
Notes to the financial statements. Details of contract(s) or arrangement(s) with related
parties referred to in Section 188(1) of the Companies Act read with Rule 8(2) of the
Companies (Accounts) Rules, 2014, in the prescribed form AOC-2 is attached to this Report
as Annexure-I.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of your Company and its Joint
Venture Companies and Subsidiary Companies for the year ended March 31, 2022 have been
prepared in accordance with the provisions of Section 129(3) of the Companies Act and
applicable Accounting Standards, and form part of this report.
Pursuant to the first proviso of Section 129(3) of the Companies Act
read with Rule 5 of the Companies (Accounts) Rules, 2014, a separate statement containing
salient features of the Financial Statements of Subsidiaries / Associate / Joint Venture
Companies in Form AOC-1 is appended to this report, which forms part of the Financial
Statements. The separate Audited Financial Statements in respect of the Subsidiaries are
also available on the website of the Company at www.hal-india. co.in.
SUBSIDIARY/ ASSOCIATE/ JOINT VENTURE COMPANIES
As on March 31, 2022, your Company has two Subsidiaries including one
wholly owned Subsidiary and fourteen Joint Venture Companies (JVCs) including two
Not-for-Profit Companies (Section 8 Companies).
Pursuant to the provisions of Section 134(3)(q) of the Companies Act
read with Rule 8(1) of the Companies (Accounts) Rules, 2014, a Report on the performance
and financial position of each of the Joint Venture Companies and Subsidiary Companies is
attached to this Report as Annexure-II.
SIGNIFICANT ACHIEVEMENTS
Significant achievements of the Company during the year are as
follows:-
• HAL has bagged a contract for production and supply of 15 Light
Combat Helicopters (LCH) on March 30, 2022.
• Handed over 75th ROH Su-30 MKI aircraft to IAF on
January 25, 2022. HAL has overhauled 20 Su-30MKI aircraft attaining the peak capacity
envisaged against capacity augmentation project in the current year.
• Completed Mid-Life upgrade of two Do-228 aircraft for Coast
Guard in 2021-22 against deliveries originally scheduled to start from 2022-23 as per
Contract.
• Commenced Performance Based Logistics (PBL) operations of ALH Mk
III (MR) on February 10, 2022 for the first batch of ALH Mk III (MR) inducted by CG under
PBL support regime.
• The green field helicopter factory of HAL at Tumakuru is in
place, with stage 1 & stage 2 infrastructure facilities at an investment of Rs 47,637
Lakh by the company.
• The Company has made investment of Rs 1,20,000 Lakh in UP
Defence Industrial Corridor (UPDIC) towards enhancement of capacity & capability at
Lucknow, Korwa and Kanpur Divisions of HAL.
• In-line with Government's vision to boost defence exports to
friendly foreign countries, the Company has signed the contracts with Government of
Mauritius (GoM) for export of one passenger variant Do-228 (PVD) on September 10, 2021 and
for one Advanced Light Helicopter (ALH) Mk III helicopter on January 19, 2022. Further,
HAL has already completed the production and delivery of this Do-228 PVD for Mauritius
ahead of contractual delivery commitment.
• The Intermediate Jet Trainer (IJT), designed and developed by
HAL for stage -II training of IAF pilots has successfully demonstrated the capability to
carry out six turn spins, to the LH and RH sides, which is the most crucial stage in
flight trials.
• RCMA cleared the introduction of foldable Tail boom and
Horizontal Stabilizer on ALH Mk-III Wheel Version as a Technology Demonstrator.
• Indigenously designed and developed 'Air Data Computer ADC 3600A
CVL1 (ADC-ITSOA)' which is 'Environmentally Qualified' with in-house developed application
software certified for civil platforms of aircraft and helicopters.
• Integrated SPICE 2000 weapon on Mirage 2000 aircraft with
Mission Computer MC2 which is designed and developed by the Company, through MIL 1 553
Bus.
• The Company has successfully integrated and flown 'Lithium Main
Battery' on HTT-40 and making it first time in the continent using lithium battery for
military aviation.
• Indigenously designed and developed Solid State Weapon Control
System (SSWCS) for management of weapons on Jaguar aircraft as a replacement to the ageing
Armament Main unit (AMU).
• Successfully completed the design, development and certification
of Solid State Cockpit Voice and Flight Data Recorder (SSCVFDR) and Control Unit (CU) for
Hindustan-228 aircraft.
• The Company has in-house developed multi-platform adaptable
generic simulator, which is capable of flight simulations for predictions and replay of
flight dynamics with designer's synthetic input as well as Pilot-in-loop inputs for
various platforms using the same cockpit controls and associated peripherals utilizing
mature and accurate 6DOF model of the respective aircraft.
• The heaviest Semi-Cryogenic propellant tank (SC120- LOX) ever
fabricated by HAL was delivered to Indian Space Research Organization (ISRO) on October 5,
2021.
CURRENT PROJECTS AND PROGRAMS
During the year, the Company has produced Light Combat Aircraft (LCA)
Tejas, Dornier Do-228 Aircraft (both civil & military), Advanced Light Helicopter
(ALH) Dhruv, Light Combat Helicopter (LCH), engines, accessories and aerospace structures
against the various customer orders. HAL has launched production of Light Utility
Helicopter (LUH) against Letter of Intent (LoI) received from customers.
As a major step towards civil operations, the Company also signed a
lease agreement with Alliance Air Aviation Limited on September 26, 2021 for the supply of
two Civil Do-228 aircraft for regional operations in Arunachal Pradesh, aimed at giving
boost to India's Regional Connectivity Scheme (RCS). First commercial flight on the
Dibrugarh-Pasighat route commenced on April 12, 2022 by Alliance Air Aviation Limited.
The Company has also embarked on DGCA Type Certification (TC) of 19
seater Hindustan-228 aircraft, a Do-228 Civil variant. The first flight of the aircraft
was held on December 26, 2021 and Type Certificate from DGCA has been received on May 19,
2022.
DEVELOPMENT PROGRAMS
The Design team of the Company has made continuous efforts to propel
the development programs by developing various technologies and significantly moved
towards the realization of the projects viz. Basic Trainer Aircraft (HTT-40), Light
Utility Helicopter (LUH), Light Combat Aircraft (LCA)- MK1A, Indian Multi-Role Helicopter
(IMRH) and Development of Engines. The progress achieved in respect of these projects
during the year is given below:-
• BASIC TRAINER AIRCRAFT (HTT-40)
HTT - 40 is the Basic Trainer aircraft currently being indigenously
designed and developed by HAL. HTT-40 would be used for basic flight training, aerobatics,
instrument flying and close- formation flights whereas its secondary roles would include
navigation and night flying. Features of the aircraft include Air conditioned cockpit,
Tandem seating, Zero-Zero ejection seats and Multifunction Displays. The aircraft has the
capability to be converted to armed / weaponised version at a later stage. The program has
been taken up with internal funding. A total of 3 prototypes have been built which
includes two flying prototype and one Structural Test Specimen (STS).
During the year, the aircraft has successfully completed erect spin
certification. All PSQR performances met with AUW
3050kg. Controls optimized and 9 Turn Spins demonstrated on clean
aircraft. The PSQR validation trials by IAF completed. In February, 2021, Request for
Proposal (RFP) for HTT-40 aircraft received from IAF and response has been submitted in
April 2021 which is presently under evaluation.
• LIGHT COMBAT AIRCRAFT (LCA) Mk 1A
LCA Mk1A is an improved variant of indigenously developed LCA MK1,
presently being developed by HAL. It has additional features and improvements such as Self
Protection Jammer, Active Electronically Scanned Array (AESA) RADAR, Beyond Visual Range
(BVR) Missile.
Contract for the supply of 83 LCA Mk1A to IAF was signed during Aero
India 2021 and production activities have been launched.
• LIGHT UTILITY HELICOPTER (LUH)
The LUH is a single engine, 3 Ton weight class helicopter having Glass
Cockpit with Multi-Function Displays. The helicopter is capable of flying at 220 Kmph;
service ceiling of 6.5 Km and a range of 350 Km with 500 kg payload. Three flying
prototypes have been built and were extensively flight tested. Initial Operational
Clearance (IOC) for LUH IAF Version was accorded on February 7, 2020 and for the Indian
Army Version on February 5, 2021.
During the year, Hot and High altitude flight trials with new tail
rotor system to further improve performance requirement completed at Leh. The Company
received Letter of Intent (LoI) for 12 helicopters and production activities have
commenced.
The green field helicopter factory at Tumakuru for manufacturing of LUH
is also in place.
• INDIAN MULTI ROLE HELICOPTER (IMRH)
The Company has undertaken the design and development of 10-15 ton
class IMRH for Indian Air Force, Indian Army and Indian Navy. The Naval variant of IMRH is
christened Deck Based Multi Role Helicopter (DBMRH).
IMRH and DBMRH would be designed to meet the requirement of all the
three military services and its future extension to civil market to cater to off shore
operations, utility, VVIP transport etc., to enlarge the helicopter business through
production as well as MRO activities.
Currently, the preliminary design phase is under progress. HAL has
completed Phase 1 of wind tunnel testing of IMRH- IAF scaled model and results are
satisfactory. Phase-2 of Wind Tunnel testing are under progress.
In a significant boost to Prime Minister's vision on 'Aatmanirbhar
Bharat Abhiyan', 18 major platforms have been identified by the Ministry of Defence for
industry led R&D under various routes, wherein private industry will be encouraged to
take up design and development of military platforms and equipment. The Indian Multi Role
Helicopter (IMRH) is identified as one of these 18 platforms to be taken up through
Special Purpose Vehicle (SPV) model. Accordingly, HAL has issued the Expression of
Interest (EoI) in April, 2022 for selection of SPV Partner.
• 25 kN TURBOFAN ENGINE (HTFE-25)
Design and development of a 25kN thrust class turbofan engine, which
can be used on Basic/ Advanced military trainers, on small business jets and also large
UAV applications is under progress at HAL. The engine can be used on a 5-ton weight class
aircraft in single engine configuration and on aircraft of up to nine- ton weight class
with twin-engine configuration. Two core engines have been produced so far and are
undergoing development trials. Cold weather trials and Hot weather high altitude trials
were completed at Leh.
Full engine (Technology Demeonstrator) has been built and first run
completed successfully. Completion of acceleration trials upto 55% of the speed achieved.
• 1200 kW TURBOSHAFT ENGINE (HTSE-1200)
The 1200KW Turbo shaft engine would be used as power plant for 3 to
6-ton category helicopters. One technology demonstrator of HTSE-1200 engine was built and
it is presently under testing.100% speed run achieved on core engine. Sea level trials of
core engine completed successfully.
High altitude cold weather trials of Jet Mode Engine at Leh and High
altitude hot weather trials of Jet Mode Engine at Leh, South Pullu and Khardung-La
completed. Run of Power mode engine to 80% of the speed achieved.
• HAWK-i
Hawk India (Hawk-i) is the indigenously upgraded Hawk Mk 132 aircraft
with enhanced operational and training capabilities. All design and software development
activities completed. Development of all Avionics LRUs (Viz. RADALT, IFF Mk XII, SSDVRS,
CMDS, Softnet Radio, INCOM, DTS, SAAW, R118 RWR, VACS, ICU & CSIO-HUD) completed.
Flight trials also completed. The aircraft is being offered to IAF and other prospective
customers.
RESEARCH AND DEVELOPMENT EFFORTS
HAL has continued its efforts towards Design and Development of new
platforms/ products / technologies and activities to enhance its capability with a view to
bring technological superiority to its products and in order to cope up with the future
technological challenges. These efforts have resulted in successful demonstration of deck
based operations capability and integration of Medical Intensive Care Unit (MICU) on ALH
MkIII, capability of IJT to carry out LH and RH side six turn spins and completed the
erect spin certification flight trials on HTT- 40 aircraft. HAL is also progressing the
design & development of Combat Air Teaming System (CATS) Warrior, which was launched
during Aero India 2021 and HAL has commenced 'Low Speed Wind Tunnel Tests'.
During the year, the Company has incurred a total R&D expenditure
of Rs 1,96,691 Lakh which is 8.07% of the Turnover. The company has transferred a sum of
Rs 31,596 Lakh (10% of Operating PAT) to R&D reserve for contribution to R&D
corpus during the year 2021-22.
During the year, HAL has filed 102 IPR applications which make
cumulative number of 2031 IPRs filed by Company. Further, 147 IPRs have also been granted
during the year taking cumulative IPRs held by the organization to 611. (Patents - 64,
Industrial Designs - 102, Copyrights - 443, Trademark - 2).
BOARD AND ITS COMMITTEE MEETINGS
During the year, 12 (Twelve) Board Meetings were held and the maximum
interval between any two meetings was not more than 120 days.
The details of meetings of the Board and Committees thereof held during
the year are furnished in the Corporate Governance Report, which forms part of this
Report.
COMMITTEES OF THE BOARD
As on March 31,2022, the Board has five Statutory Committees namely
Audit Committee, Nomination & Remuneration Committee, Corporate Social Responsibility
& Sustainable Development Committee, Stakeholders Relationship Committee and Risk
Management Committee.
A detailed note on the composition, terms of reference and meetings of
the Board and its Committees is provided in the Corporate Governance Report.
CHANGES IN BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
The following changes took place in the Board of Directors and of Key
Managerial Personnel (KMP) of your Company during the financial year:
Appointment
Dr. Divya Gupta, was appointed as Part -Time Non-Official (Independent
Director) on the Board of the Company w.e.f December 28, 2021.
Cessation
• Rear Adml K C Sekhar and Dr Malla Reddy ceased as Independent
Director on the Board of the Company due to Completion of their tenure on July 23, 2021.
• Shri M S Velpari ceased as Director (Operations) on the Board of
the Company due to his superannuation on February 28, 2022.
DECLARATION OF INDEPENDENCE
The Company has received declarations from the Independent Directors of
the Company under the Companies Act confirming that they met the criteria of independence
as prescribed under Section 149(6) of the Companies Act and Regulation 25(8) of the SEBI
(LODR) Regulations and they have also complied with the Code for Independent Directors as
prescribed in Schedule IV of the Act.
COMPANY'S POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The appointment, tenure and remuneration of Functional Directors
including Chairman and Managing Director (CMD) are determined by the Government of India.
The Terms & Conditions of appointment, including the period of appointment, the Scale
of Pay and other entitlements are notified by the Government of India.
Government Nominee Directors are appointed by the Department of Defence
Production, Ministry of Defence and they are not entitled to any remuneration / sitting
fees.
Independent Directors are appointed by the Government of India and they
are entitled to sitting fees for attending the Board / Committee meetings as prescribed by
the Board in adherence with the statutory Rules and Regulations.
In view of the Gazette Notification No GSR 463 (E) dated June 5, 2015
of the Ministry of Corporate Affairs (MCA), your Company, as a Government Company, is not
required to frame a Policy on Directors' appointment and remuneration, including criteria
for determining qualifications etc. under Section 134(3) (e) of the Companies Act.
BOARD EVALUATION
Pursuant to the Notification No. 463 (E) dated June 5, 2015 issued by
the Ministry of Corporate Affairs, the statement indicating the manner in which formal
annual evaluation has been made by the Board of its own performance and that of its
committees and individual directors is not required for your Company, as the performance
of directors is evaluated by the Administrative Ministry.
ANNUAL RETURN
In accordance with the provisions of the Companies Act, 2013, the
Annual Return in the prescribed format has been hosted on website of the Company at
https://hal-india.co.in/Common/ Uploads/DMS/Form MGT 7 21 22.pdf
COMPLIANCE WITH SECRETARIAL STANDARDS
The Company complies with all applicable mandatory secretarial
standards issued by the Institute of Company Secretaries of India.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
As a defence Central Public Sector Enterprise (CPSE), your Company was
granted exemption vide Notification GSR No.680 (E) dated September 4, 2015, from the
disclosure of information with respect to conservation of energy, technology absorption,
foreign exchange earnings and outgo under the provisions of Section 134(3)(m) read with
Rule 8(3) of the Companies (Accounts) Rules, 2014.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Pursuant to the provisions of Section 135 of the Companies Act and
Companies (Corporate Social Responsibility Policy) Rules, 2014 and Amendment thereof &
DPE Guidelines, the Company has undertaken various activities during the year as per its
CSR Policy. The projects / programmes / activities taken up are in line with Schedule VII
of the Companies Act. The thrust areas under CSR are healthcare including combating
against COVID-19, Skill Development for Employment Enhancement & Self Employment,
Education etc. The other areas in which support extended were Sanitation, Drinking Water,
Environment Sustainability, Sports Development etc. The Company has spent an amount of Rs
7,827 Lakh under CSR for the Financial Year 2021-22 against the CSR budget/ obligation of
Rs 8,100 Lakh.
The Corporate Social Responsibility Policy, Composition of the
Committee and CSR Projects/ Activities of the Company is available on the Company's
website at https://hal-india. co.in/Corporate%20Social%20Responsibility/M 412. Salient
features of the Policy form part of the Annual Report.
Annual Report on CSR activities undertaken by your Company during the
year 2021-22, pursuant to Section 135 of the Companies Act, 2013 read with Companies
(Corporate Social Responsibility Policy) Rules, 2014, as amended, is attached to this
Report as Annexure-III.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
In terms of amendment dated May 05, 2021 to Regulation 34(2)(f) of SEBI
(LODR) Regulations, the Company has prepared Business Responsibility and Sustainability
Report (BRSR) for the year 2021-22 on Environment, Social and Governance (ESG) parameters
in the prescribed format and appended to this Report.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Company has a Board approved Risk Management Policy, in place. The
policy aims at elimination or reduction of risk exposures through identification and
analysis of various types of risks and facilitating timely action for taking risk
mitigation measures. The policy envisages that all programs, project reviews will
highlight the progress of risk mitigation plans till the closure and signing off the
mitigation plans.
In line with Regulation 21 of the SEBI (LODR), Regulations, 2015, the
Board of Directors had constituted the Risk Management Committee for monitoring and
reviewing of the risk management plan and other such functions as it may, deem fit
including cyber security, in line with applicable laws.
SIGNIFICANT AND MATERIAL ORDERS
There are no significant and material orders passed by the Regulators
or Courts or Tribunals impacting the going concern status and the operation of the Company
in future.
PUBLIC DEPOSITS
Your Company has not accepted any deposit during the year. Further,
there was no outstanding deposit and/or unpaid or unclaimed principal amount or interest
against any deposit either at the beginning or at the end of the Financial Year 2021-22.
ISSUE OF EQUITY SHARES WITH DIFFERENTIAL RIGHTS
During the year, the Company has not issued any equity shares with
differential rights as to dividend, voting or otherwise.
MATERIAL CHANGES SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS
No material changes / commitment of the Company have occurred after the
end of the Financial Year 2021-22 and till the date of this report, which affect the
financial position of the Company.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
The provisions of Section 197 of the Companies Act and the relevant
Rules regarding particulars of employees drawing remuneration in excess of the limits
specified are exempted for Government Company, in view of the Gazette Notification No.
G.S.R. 463 (E) dated June 5, 2015 issued by the Ministry of Corporate Affairs, Government
of India.
MOU WITH GOVERNMENT
Your Company signs annual Memorandum of Understanding (MoU) with the
Ministry of Defence (MoD), Government of India (GoI).
The Company has achieved "Excellent" performance rating with
a score of 93.49 for the financial year 2020-21 against MoU signed with the Ministry of
Defence, Government of India.
INDIGENISATION
The Company has put in concerted efforts on indigenisation of
components, accessories and systems required to manufacture as well as repair &
overhaul of aircraft, engine and associated accessories. Every year, HAL indigenizes
various items/ components and systems of foreign origin fitted on HAL platforms through
in-house capabilities or with the help of local vendors to reduce dependence on imports,
savings in foreign exchange and manage obsolescence, thus fostering self-reliance through
'Make in India'.
In line with the Atmanirbhar Bharat Abhiyan of Govt. of India, HAL
indigenised 1412 no. of items with anticipated annual foreign exchange saving of Rs 159.6
Crore during the FY 2021-22. To align with national priorities and ensure inclusive
growth, HAL has been also encouraging Indian private sector participation in the
indigenization/ Make in India efforts to undertake various high value systems/equipment of
foreign origin fitted on HAL platforms.
The other major initiatives / achievements during the year are as
under:
> Indigenisation under MoD's 'Shelf of Projects' scheme:
MoD's 'Shelf of Projects' is an ambitious scheme to enhance indigenous
capability in the country in defence sector where in key projects involving high
technologies have been identified for indigenization in a given time frame. The Company
has identified major items for 'Shelf of Projects' scheme to be developed indigenously for
its rotary platforms. Upon successful prototype development and final acceptance after
trial and testing, there will be an embargo on import for these items. In this regard, the
Company has started vendor outreach activities for indigenous development of these items.
This initiative is an important step towards self-reliance in Defence Sector.
> Indigenisation of Major LRUs of various Platforms:
During the year, the Company has also taken initiative for indigenous
development of Line Replaceable Units (LRUs) currently being imported for its major
platforms. In this regard, the Company has put concerted efforts towards finalization of
roadmap for indigenisation of LRUs. These items are planned to be indigenized through
In-house, Make-I, Make-II, DRDO/ ADA route etc. in the coming years.
> Indigenisation through Make-II procedure:
The Company has already started indigenization through HAL Make-II
(Industry Funded) procedure which is in compliance of the Make-II framework promulgated by
MoD and envisages the assured order quantity after successful development of items through
private vendors. The Company has made significant progress in this regard and has issued
Expression of Interest (EoI) for around 800 nos. of items cumulatively in a phased manner
to take up for indigenisation.
> Uploading of imported items in Srijan Defence Portal:
In continuation of its effort to support Indian Industries with
opportunities for Make-In-India in Defence, the Company has uploaded cumulatively more
than 13000 nos. of imported items in Srijan Defence Portal of MoD, GoI.
> Organising/ participation in Seminars, Conferences and Exhibitions
on Indigenisation / Vendor Development program
To keep abreast Indian Vendors for opportunities available at HAL for
indigenization, the Company organized and participated in number of seminars/ conferences/
vendor development meets mainly through virtual mode. Participants were also briefed about
the Indigenisation procedure and support provided by the Company during indigenization.
INITIATIVE FOR ATMANIRBHAR BHARAT
During the year, the Company has produced 34 new aircraft/ helicopters
which includes 30 indigenous aircraft/ helicopters (namely ALH, LCH and LCA), which is an
immense contribution towards Atmanirbharat. These are state-of-the-art platforms in its
class, the development of which has obviated the need for importing platforms from abroad,
thus not only saving significant FE to the country but ensuring availability of lifecycle
support within the country. Accordingly, operations of HAL by way of manufacturing and
overhaul of aircraft, engines and accessories in India, has been resulting in annual FE
saving to the tune of USD 2 Billion to the Country, year on year.
As a continuous pursuit towards greater self-reliance, imported LRUs,
systems, components etc fitted on indigenous platforms are being taken up for
indigenization under various routes through in-house as well as private industry
involvement under Make I, Make II etc. In FY 2021-22, a total of 1412 items have been
indigenized.
OUTSOURCING
As part of the "Make in India" drive and the Atmanirbhar
Bharat Abhiyan, HAL has been nurturing and developing a vibrant indigenous aerospace &
defence ecosystem. In its path of moving towards being a lead integrator, HAL has been
striving to develop Tier-II and gradually Tier-I suppliers over a period of time while
retaining the core areas as prime integrators. HAL has been taking up outsourcing
diligently even in the new, and upcoming projects, so as to turn the suppliers into
reliable business partners over time.
Furthermore, to provide the required impetus and to address the
concerns in taking up Outsourcing through GeM portal, training/ knowledge sharing sessions
were organized for the officers concerned. Outsourcing vendors were requested and
encouraged to on-board the GeM portal. Necessary policy changes were made to the existing
HAL Outsourcing manual, to ease up the process of taking up Outsourcing through GeM.
EXPORTS
Initiatives taken to boost Exports during the year are as under:
> Concluded contracts with Mauritius Police Force under Government
of India supported EXIM Bank Line of Credit for supply of following platforms:
(a) one Passenger Variant Do-228 (PVD) aircraft and
(b) one Advanced Light Helicopter (ALH) Mk.III helicopter
> The contract of Do-228 was exchanged between High Commissioner of
India to Mauritius and Minister of Foreign Affairs, Govt. of Mauritius during an official
ceremony at Mauritius held on September 13, 2021.
> Signed Contract with Nigerian Army Aviation for ab- initio
training of six helicopter pilots and the training was completed successfully. Follow-on
Contract for Phase 2 Training has also been signed by Nigerian Army.
> Light Combat Aircraft (LCA), Tejas was shortlisted by Royal
Malaysian Air Force (RMAF) and an RFP was issued to HAL. The RFP was responded and
presently the evaluation of the proposal for 18 nos. LCA FLIT for RMAF is under progress.
BUSINESS DEVELOPMENT
The following Initiatives taken for Business Development during the
year:
> HAL is in discussion with Lockheed Martin Corporation- USA,
Boeing-USA, IAI-Israel, Saab Aeronautics-Sweden, Airbus-Germany, Dassault Aviation-France,
Rolls Royce- UK, GE Engines-USA and others for possible business co-operation in
manufacturing of system, subsystem, final assembly & integration of aircraft in India
under Indigenization and Atmanirbhar scheme of GoI.
> MoU with Rolls Royce for extending RoH services for Adour 871
Engine operating overseas.
> Signed License agreement for repair and overhaul of LM2500 Marine
Gas Turbines operated by South East Asian countries.
> MoU signed between HAL and Lockheed Martin towards meeting Offset
commitments related to Indian MoD procurements.
> Interaction with Boeing for ToT/Co-development projects, under
offsets, for refinement of HAL platforms with a view to enhance customer comfort.
> HAL and Alliance Air signed Dry Lease Agreement for two Do-228
aircraft on September 26, 2021 which are now being operated in N-E region.
> HAL is progressing on the design & development of Amphibian
variant of Do-228 aircraft, considering the requirement for such aircraft in domestic and
international markets.
VENDOR DEVELOPMENT
During the year, the Company has taken several vendor development
initiatives to increase the number of vendors.
During the year, the Company has conducted 21 Vendor Development
Programmes, of which 19 were for Micro & Small Enterprises (MSEs) & 2 were for
MSEs owned by SC/ST Entrepreneurs.
The Company has registered with RXIL and Mynd Solution for enabling
payments through TReDS platform to MSMEs. HAL has already made payments through RXIL &
Mynd platform. All efforts are made to bring the MSMEs on TReDS platform.
The Company has registered with MSME SAMBANDH portal and the
procurement details are being updated monthly in this Portal. The Company has also
registered with MSME SAMADHAAN portal and the same is being monitored regularly for
resolution of payment complaints of MSEs, if any.
Your Company is a part of Public Procurement Portal, Government
e-Marketplace (GeM portal) and registered as a Buyer in GeM Portal and taking up
procurement of items which are available in GeM Portal. Also procuring several items which
are not available in GeM Portal utilizing Custom Bid Module/ BoQ Module extensively. All
our vendors are being persuaded to on board on the GeM portal to utilize the facilities
available in the GeM portal.
HAL has implemented company-wide e-Procurement system through its own
e-Procurement portal for all tenders valuing more than Rs 2 lakhs. A 24X7 e-Procurement
help desk has been established to provide information, support, training, operational
issues/clarifications to the vendors.
HAL has implemented the Public Procurement (Preference to Make in
India), Order 2017 and its amendments issued vide letter No.P-45021/2/2017-PP(BE-II)
dt.May 29, 2019 by Department for Promotion of Industry and Internal Trade (DPIIT) to
encourage 'Make in India' and promote manufacturing and production of goods & services
in India.
PROCUREMENT FROM MICRO & SMALL ENTERPRISES (MSEs)
The Company has implemented the Public Procurement Policy for Micro and
Small Enterprises (MSEs) Order, 2012 & its amendments issued by Ministry of MSME vide
Order No.21 (22)-2018-MA dated November 9, 2018. The Company has achieved more than the
mandated procurement of 25% from MSE entrepreneurs (excluding specific defence procurement
as per Sl.No.14 of the policy). During the year, the total value of procurement includingoutsourcing made from MSEs is Rs 1,18,554 Lakh.
INTEGRITY PACT (IP)
Your Company has system of signing of IP with vendors for all
procurement of Goods, Services & Works / contracts having value of Rs 5 Crore and
above. Only those Vendors / bidders, who commit themselves to IP with the HAL would be
considered competent to participate in the bidding process. Further, to encourage
competition in HAL procurement and to reduce processing lead time, HAL has implemented the
Omnibus Integrity Pact with effect from January 1, 2018. This Omnibus IP shall be valid
upto 5 years and the same can be proposed by bidder for consideration against any offers
submitted by the vendor during the validity period of Omnibus IP.
HUMAN RESOURCE DEVELOPMENT
The strength of employees as on March 31, 2022 stood at 25,412.
As on March 31, 2022, a total of 3324 Apprentices were engaged in the
Company, comprising 9.2% of the total employee strength including contractual staff.
EMPLOYEE WELFARE
Company extends welfare benefits to the employees and their dependents
by way of comprehensive Medical Facilities, Housing Facilities, Canteen Facilities (for
employees only), and Educational facilities for employee's Children, Sports Facilities,
etc.
Keeping in view the COVID-19 pandemic which had unfolded an
unprecedented situation creating a sense of uncertainty among people, the Company had
introduced a Scheme during June 2021, which would be effective from 01/01/2020, to ensure
regular monthly monetary support ranging from Rs 15,000/- PM to Rs 50,000/- PM depending
upon the Grade / Scale of the employee, to the dependent family members of the deceased
employees upto the notional date of superannuation thereby enabling them to lead a normal
life. Further, to provide an opportunity to Executives to avail Leave in the form of
Sabbatical, HAL Sabbatical Scheme has also been introduced during the year in the Company.
The Scheme provides an Officer to avail Leave without pay upto a maximum period of 2 (two)
years in maximum of 2 (two) spells during the service in the Company.
REPRESENTATION OF SC/STs
The position regarding representation of Scheduled Castes / Scheduled
Tribes (SC / STs) is as follows: Representation of SC/STs in the total strength of the
Company as on 1st January 2021 and 1st January 2022
| Category (Grade / Scale of Pay) |
Total Strength as on |
Number of SCs as on |
Number of STs as on |
|
1.1.2021 |
1.1.2022 |
1.1.2021 |
1.1.2022 |
1.1.2021 |
1.1.2022 |
| Group - A (Grade - II & above ) |
8000 |
7843 |
1436 |
1396 |
493 |
482 |
| Group - B (Grade-I) |
25 |
19 |
3 |
2 |
2 |
2 |
| Group - C (Scale -3 to Special Scale) |
18620 |
17801 |
3260 |
3114 |
1393 |
1364 |
| Group - D (Scales - 1 & 2 ) |
|
|
|
|
|
|
| (i) Excluding Safai Karmacharis |
5 |
5 |
1 |
1 |
- |
- |
| (ii) Safai Karmacharis |
- |
- |
- |
- |
- |
- |
| Total |
26650 |
25668 |
4700 |
4513 |
1888 |
1848 |
Recruitments made during the period 1st January, 2021 to 31st
December, 2021 and the SC/STs amongst them
| Category (Grade / Scale of Pay) |
Total number of Post filled |
No. of Reservations made for |
No. of Posts filled by
appointment of |
|
|
SCs |
STs |
SCs |
STs |
| Group - A (Grade - II & above ) |
125 |
17 |
7 |
18 |
8 |
| Group - B (Grade-I) |
- |
- |
- |
- |
- |
| Group - C (Scale - 3 to Special Scale) |
27 |
3 |
6 |
6 |
4 |
| Group - D (Scales - 1 & 2) |
|
|
|
|
|
| (i) Excluding Safai Karmacharis |
- |
- |
- |
- |
- |
| (ii) Safai Karmacharis |
- |
- |
- |
- |
- |
| Total |
152 |
20 |
13 |
24 |
12 |
Vacancy - based Promotions made during the period 1st
January, 2021 to 31st December, 2021 and the SC/STs amongst them
| Category (Grade / Scale of Pay) |
Total number Promoted |
No. of Reservations made for |
No. of Posts filled by
Promotion of |
|
|
SCs |
STs |
SCs |
STs |
| Group - A (Grade - II & above ) |
956 |
NA |
NA |
161 |
51 |
| Group - B (Grade-I) |
- |
- |
- |
- |
- |
| Group - C (Scale - 3 to Special Scale) |
- |
- |
- |
- |
- |
| Group - D (Scales - 1 & 2 ) |
|
|
|
|
|
| (i) (i) Excluding Safai Karmacharis |
- |
- |
- |
- |
- |
| (ii) Safai Karmacharis |
- |
- |
- |
- |
- |
| Total |
956 |
- |
- |
161 |
51 |
EMPLOYEE RELATIONS (ER) / INDUSTRIAL RELATIONS
The Employee Relations Scenario remained peaceful and cordial during
the year. Smooth relations were maintained between the Management and the Unions /
Associations by having effective communication, so as to eliminate any scope of conflicts
and misunderstandings and thus facilitate maintenance of Industrial Harmony. Meetings with
the representatives of the Recognized Unions / Officers Associations at the Divisional,
Complex & Corporate Levels were held to discuss various issues.
Plant Level & Shop Level Committees with representatives from the
Management / Union are functioning in the Divisions to discuss and resolve production
related matters. In order to address Employee Grievance / Representations, Grievance
Redressal Mechanisms are also in place in the Company.
RAJBHASHA IMPLEMENTATION
In accordance with the Guidelines issued by Department of Official
Language, Ministry of Home Affairs, New Delhi, constant efforts are being made by all the
Divisions of the Company towards implementation of the Official Language Policy (OL
Policy).
HAL Corporate Office was conferred with 'Rajbhasha Nishpadan Sreshthta
Puraskar' for 2020-21 by Town Official Language Implementation Committee (Undertakings),
TOLIC, Bengaluru.
Inspection of HAL Corporate Office was done by Committee of Parliament
on Official Language on December 30-31, 2021. In this inspection, HAL Corporate Office was
the Nodal Office for this Inspection.
As an Initiative in Official Language Implementation and to make aware
of the Employees towards Statutory rules of Official Language, an OL Online Quarterly
E-Margdarshika Rajbhasha Karyanvayan -Gati Evam Disha, is being published from April 2021.
In addition HAL Connect E-news Letter is also being issued in bilingual on weekly basis.
In accordance with the Guidelines issued by the Department of Official
Language, Ministry of Home Affairs, New Delhi, efforts have been made to prepare all the
HAL Manuals in bilingual. Additionally, all the Form/ Formats being used in HAL have also
been made in bilingual for day to day use in Official work.
A Special Hindi Webinar/ Workshop on 'Bhashini - An Introduction and
its Use' was organized for OL Staff and nominated Employees on March 10, 2022.
Hindi Fortnight was celebrated from September 14 to September 28, 2021
by all the Divisions of the Company as per directives issued by Department of Official
Language, Ministry of Home Affairs, New Delhi.
Employees are being encouraged through Monthly Incentive Scheme related
to Official Language. Efforts have been made to make Executive Notings in bilingual in our
E-Filing System.
The progress made towards OL Implementation by the Divisions of the
Company was reviewed at Corporate level. Inspections of various Divisions related to
Official Language have been conducted successfully by Corporate Office from time to time
to provide guidance in this regard.
The Department of Official Language, Ministry of Home Affairs have
assigned the responsibilities of Town Official Language Implementation Committee (TOLIC)
to the Nasik Division of the Company and they are conducting TOLIC Meetings successfully.
PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
The Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 has been notified in the Company. In line with the Guidelines
received from time to time, necessary actions have been taken to prevent Sexual Harassment
of Women at Workplace. The HAL CDA Rules applicable to Officers and the Certified Standing
Orders applicable to Workmen have the required provisions in this regard.
Internal Complaints Committees as per Section 4 of the Act have been
put in place. Information for the year 2021-2022 in terms of Section 22 of the Act, is as
indicated below:
| (i) |
Number of Cases pending as on 01/04/2021 : |
4 |
| (ii) |
Number of Complaints of Sexual : Harassment received in the
Financial Year 2021-2022 |
1 |
| (iii) |
Number of Complaints disposed of during : the Financial Year
2021-2022 |
5 |
| (iv) |
Number of Cases pending as on 31/03/2022 : & its status |
- |
In line with the Govt.'s directions, Awareness Programme on Sexual
Harassment were also conducted at Divisions / Offices on December 09, 2021 to commemorate
the 8th Anniversary of the notification of Legislation on Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
INFORMATION TECHNOLOGY (IT) INITIATIVES
During the year, your Company has taken many IT initiatives towards
improving digital journey. Some of the major IT initiatives and achievements of the
Company during the period are:
• Project Parivartan - ERP upgradation: Project Parivartan aimed
at Centralization and standardization of ERP System across the Company is being
implemented. Various milestones that have been completed during current Financial Year
include finalization of Project Charter, establishment of test & development
environment, As-is study and documentation of business processes.
• Implementation of Budgetary Quotation (BQ) Portal for IAF: An
online BQ portal was implemented Companywide for receipt of IAF budgetary quote request,
assignment to Divisions, estimation of cost, approval of BQ and intimation of quote in
online mode to IAF
• Hosting of CRM Website for Do-228 Support for Civil Customers:
An online System for supporting Do 228 Civil operations has been developed and hosted on
HAL Website to facilitate direct online placement of RMS Orders for spares / services,
capture of customer issues/ queries and resolution.
• Online Claim System for Defence Customers:
An online system for submitting of claim by HAL and acknowledgement by
payment agency has been conceptualized and development is under progress. The System will
facilitate submission of claim invoice and other supporting documents and capture payment
status in online mode. This will facilitate a speedy and paperless mode for processing of
bills and tracking status of payments.
• HAMS - HAL Aviation Maintenance Software has been implemented
for Performance Based Logistics (PBL) Contract of ALH for Indian Cost Guard. This fully
inhouse developed software comprised of modules such as Fleet Management, Flight
Operations, Maintenance Management, Quality & Safety, Inventory Management, Human
resources and Document Management.
• Paperless Office: Paperless Office initiative has been started
across the Company with the objective of elimination of hard copy approvals and reports.
• System for financial assistance for dependents of deceased
employees: A software system developed and implemented to provide financial assistance to
the families of the deceased employees for capturing of requests, verification and payment
in paperless mode on fast track basis.
• IoT- Integration: Few initiatives have been undertaken towards
Internet of Things (IoT) Integration at various Divisions of HAL as under.
- System to capture the process parameters during manufacturing
operations in online mode by directly reading the recorders data.
- Monitoring the Temperature and Humidity of Shelf Life item stores on
Real Time basis with in-house developed IoT Device.
- Automatic controlling of ovens for recording temperature during
operation and alerting the user after completion of operation.
• Cyber Security: Secured Web gateway is being deployed for
protecting the IT mobile assets.
AWARDS & RECOGNITIONS
During the year, your Company has received various Awards and
Recognitions. Some of the important accolades conferred to the Company are as under:
• Third Prize in "National Water Awards" - 2020-21 under
"Best Industry for CSR activities" category instituted by Ministry of Jal
Shakti, Department of Water Resources, River Development and Ganga Rejuvenation.
• Wings India Award 2022 under "Aviation Innovation
Award" category by FICCI.
• "The Institution of Engineers (India) (IEI) Industry
Excellence Award 2021" by virtue of demonstrating a higher order of business
excellence.
• "Vayoshreshtha Samman - 2021" Award under the Category
"Best Public Sector Organisation in promoting the well-being and welfare of Senior
Citizens" by the Ministry of Social Justice and Empowerment.
• Awarded 1st Rank (Gold Category) under CPSE category
by GeM Team for the order value placed by the Company through the GeM portal.
• "51st EEPC (Engineering Exports Promotion
Council) India National Awards" for Star Performers for the year 201819 in the
product Group Defence Related items.
VIGILANCE
Your Company has a well-established vigilance department headed by the
Chief Vigilance Officer (CVO). Vigilance Officers and Staff are posted to the Corporate
Office and all the Divisions and Complex Offices of the Company.
The major vigilance activities carried out by Vigilance department are
as under:
i. Preventive Vigilance:
> System studies were carried out in various areas and appropriate
measures were suggested to streamline the procedures.
> A total of 47 sessions were conducted on various topics. Key Note
address / Talk by eminent speakers was organized to spread Vigilance awareness among
employees.
> Monthly Lecture/Achievers Series - A new initiative of monthly
lecture/achievers series has been commenced to spread awareness among stake holders on the
topics related to vigilance administration, personality development, etc. from
distinguished contributors / speakers in the field.
ii. Vigilance Publications:
> Two volumes of in-house Vigilance e-magazine "Marg
Darshan" was circulated during the year on the theme "Vigilant India Prosperous
India" and "Enriching Organization Culture through Values and Ethics" were
published covering articles from internal & external writers as a part of efforts
towards spreading preventive vigilance concepts.
> "Vishleshan", a compendium of vigilance interventions
was also published during the year. Vishleshan is a compendium of select cases bearing a
vigilance angle set of case studies to succinctly draw up the mistakes made in a process
and highlight lessons to be learnt and system improvements to be made to avoid the same
mistakes in future.
iii. System Improvement measures: Based on the recommendations of
Vigilance, several system improvements have been issued by the Management in the areas of
lodging claims with insurance company, estimation and finalization of RFQ/PO, procurement
system, vendor registration, payment of HRA, engagement of contract labour, verification
of caste certificates, nonengagement of Ex-employees who have been dismissed/ removed from
the services of the Company on contract basis, etc.
iv. Vigilance Awareness Week: Vigilance Awareness Week was conducted
throughout the Organization at all divisions of HAL in nine different geographical
locations across country from October 26, 2021 to November 1, 2021, on the theme
"Independent India @ 75: Self Reliance with Integrity".
v. During the period, 510 complaints were handled, 424 regular
scrutiny, 93 surprise checks and 24 CTE checks were carried out across the Company.
QUALITY INITIATIVES AND SAFETY
• Nadcap certification has been obtained by Accessories Division
Lucknow and Avionics Division Hyderabad. Both the divisions have been accredited for
chemical processing.
• Standardization of documents for Quality Management System has
progressed further through the formulation of two more Corporate Quality Assurance
Guidelines CQAG- 9014 and CQAG-9015 on FOD Management System and Operator Self
Verification Program respectively. CQAG-9015 on Operator Self Verification Program has
been formulated in co-ordination with DGAQA HQ for joint release.
• Utilisation of Third Party Inspection Agencies has also been
started by Engine Division Bangalore (in addition to LCA & Helicopter Divisions) for
inspection of outsourced components to support the cause of "Make in India"
initiative and optimum utilization of HAL inspectors in core areas of
manufacturing/assembly. Empanelment process for 7th TPI agency is under
progress in coordination with DGAQA HQ New Delhi.
• As part of digitization of quality functions, online DGAQA Memo
generation & clearance by RDAQA offices has successfully commenced in 17 Production
divisions.
• Quality Management System of AMD Nasik and Engine Division
Bangalore have been additionally certified to AS9110C which stipulates the QMS
requirements of Aviation Maintenance Organization.
• Under the Azadi ka Amrit Mahotsav celebration to mark the 75th
anniversary of India's independence, four enriching. Webinars were conducted at the level
of Corporate Quality during Quality month of November 2021 involving senior most officers
from DGAQA, CEMILAC, IAF, Army, ICG along with experts from Industry and Academia.
• Conducted in-house training programs and workshops at customer
bases/field units on critical/AOG prone systems, to update customer knowledge.
• To bring in improvement in flight safety culture in our company,
six officers are getting trained in "Aerospace Safety and Accident Investigation
Course" per year with approval of Air HQ.
AUDITORS Statutory Auditors
HAL being a CPSE, Statutory Auditors of the Company were appointed by
the Comptroller & Auditor General of India (C&AG). M/s. Maharaj N.R. Suresh and
Co., LLP, Chartered Accountants, Bengaluru was appointed as Statutory Auditors for
auditing the Accounts of the Company for the year 202122 and 18 firms of Chartered
Accountants were appointed as Branch Auditors. The statutory auditors' report does not
contain any qualification, reservation or adverse remarks.
The Auditors' Report on financial statements for the financial year
2021-22 and comments of the Comptroller & Auditor General of India (C&AG) under
Section 143(6) of the Companies Act are appended to this Report.
Cost Auditors
Your Company has appointed M/s. GNV & Associates, Cost &
Management Accountants as Cost Auditors for conducting the Cost Audit of the Company for
the year 2021-22. The Company maintains cost records as specified by the Central
Government under Section 148(1) of the Companies Act, which are audited by Cost Auditors.
Internal Auditors
The Company has appointed 14 (fourteen) Nos. of Chartered Accountant
firms for carrying out internal audit of the Company for the year 2021-22.
Secretarial Auditor
In terms of Section 204(1) of the Companies Act, the Company has
engaged M/s. DPSP & Associates, Company Secretaries, Bengaluru to conduct Secretarial
Audit of the Company for the year 2021-22. The Secretarial Audit Report is annexed to this
Report as Annexure - IV and forms part of Annual-Report.
The management's reply on the qualification of the Secretarial Auditor,
form part of Secretarial Audit Report, which is selfexplanatory.
Annual Secretarial Compliance Report
The Company has filed the Annual Secretarial Compliance Report for the
year 2021-22 with the BSE Ltd and National Stock Exchange of India Limited. The report was
received from a Practising Company Secretary and filed within the stipulated time as
specified under Regulation 24A of the SEBI (LODR) Regulations.
CORPORATE GOVERNANCE REPORT
In terms of Regulations 34 read with Schedule V of SEBI (LODR)
Regulations and DPE Guidelines, a report on Corporate Governance for the year ended March
31, 2022 has been prepared and annexed to this Report. The Company's Secretarial Auditor
has issued a certificate on Corporate Governance, which is appended to the Corporate
Governance Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As per Regulations 34(2)(e) of the SEBI (LODR) Regulations, the
Management Discussion and Analysis Report (MDAR) forms part of the Annual Report of the
Company.
VIGIL MECHANISM
The Company has a Whistle Blower Policy approved by the Board. The
details of the Whistle Blower Policy are explained in the Corporate Governance Report and
the same is hosted on the Company's website at www.hal-india.co.in.
Employees are encouraged to raise any of their concerns by way of
whistle blowing and none of the employees have been denied access to the Chairman of the
Audit Committee.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 134(3)(c) of the Companies Act,
your Directors state that:
(a) In the preparation of the annual accounts for the year ended March
31, 2022, the applicable accounting standards have been followed along with proper
explanation relating to material departures;
(b) the directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and prudent, so as
to give a true and fair view of the state of affairs of the Company as on March 31, 2022
and of the profit and loss of the Company for the year ended on that date;
(c) the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
(d) the directors have prepared the annual accounts on a "going
concern" basis;
(e) the directors have laid down internal financial controls which are
being followed by the Company and that such internal controls are adequate and are
operating effectively;
(f) the directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were adequate and operating
effectively.
ACKNOWLEDGEMENT
Your Directors are extremely thankful and acknowledge the excellent
support extended by the Government of India, in particular the Ministry of Defence,
Department of Defence Production, Defence Acquisition and Defence Finance as well as other
Ministries of the Government of India in all the endeavours of the Company.
Your Directors also place on record their sincere appreciation towards
the Company's valued customers, in particular the Indian Defence Services, for the support
and confidence reposed by them in the Management of the Company, and look forward to the
continuance of this mutually supportive relationship in the future.
The Company wishes to place on record its appreciation for the
cooperation extended and services provided by the Comptroller & Auditor General of
India (C&AG), the Principal Director of Commercial Audit & Ex-officio Member,
Audit Board, Statutory/ Internal Auditors, Cost Auditors, Secretarial Auditors, Bankers,
Collaborators, JV Partners and Suppliers.
Your Directors are also thankful to the shareholders for the trust and
confidence reposed in the Company and look forward to their continued support to propel
the Company to greater heights.
Your Directors also wish to place on record their deep sense of
appreciation for the committed services by the Company's Executives and Workmen for
progress and prosperity of the Company.
|
For and on behalf of the Board of Directors |
|
Hindustan Aeronautics Limited |
| Place : Bengaluru |
(R. Madhavan) |
| Date : July 15, 2022 |
Chairman and Managing Director |