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Hindustan Aeronautics Ltd

BSE Code : 541154 | NSE Symbol : HAL | ISIN:INE066F01012| SECTOR : Capital Goods-Non Electrical Equipment |

NSE BSE
 
SMC down arrow

2,496.35

-128.45 (-4.89%) Volume 5297391

23-Mar-2023 EOD

Prev. Close

2,624.80

Open Price

2,493.00

Bid Price (QTY)

2,496.35(145159)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 2,519.80 - 2,475.10

52 wk High/Low 2,914.00 - 1,381.00

Key Stats

MARKET CAP (RS CR) 83509.93
P/E 13.75
BOOK VALUE (RS) 623.5767635
DIV (%) 400
MARKET LOT 1
EPS (TTM) 181.58
PRICE/BOOK 4.00496000842405
DIV YIELD.(%) 1.6
FACE VALUE (RS) 10
DELIVERABLES (%) 25.28
4

News & Announcements

23-Mar-2023

Nifty March futures trade at premium

23-Mar-2023

AGI Greenpac Ltd leads losers in 'A' group

23-Mar-2023

HAL drops as OFS begins

22-Mar-2023

Hindustan Aeronautics Ltd - Hindustan Aeronautics Limited - Offer for sale

13-Mar-2023

Hindustan Aeronautics signs contract for Rs 667 cr with MoD

11-Mar-2023

Board of Hindustan Aeronautics recommends Second Interim dividend

03-Mar-2023

Hindustan Aeronautics receives IT refund order for Rs 570 cr

02-Mar-2023

Hindustan Aeronautics bags order for supply of 70 HTT-40 Basic Trainer Aircrafts for IAF

Corporate Actions

Bonus
Splits
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Board Meeting
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Financials

Income Statement

Standalone
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Peers Comparsion

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Share Holding

Category No. of shares Percentage
Total Foreign 24586686 7.35
Total Institutions 42547703 12.72
Total Govt Holding 2336 0.00
Total Non Promoter Corporate Holding 2018766 0.60
Total Promoters 251292407 75.15
Total Public & others 13939602 4.16
Total 334387500 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Hindustan Aeronautics Ltd

Hindustan Aeronautics Limited (HAL), a public sector enterprise, is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The Operations are organised into five complexes, namely the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex, which together include 20 production divisions and 11 research and design centres (R&D Centres) located across India. The Company relies on indigenous research as well as enters into technology transfer and licence agreements to manufacture its products. In addition, the company has entered into 13 commercial joint ventures to grow its operations. Hindustan Aeronautics Limited (HAL) was incorporated as a Private Limited Company with the name 'Aeronautics India Limited' on August 16, 1963. Subsequently, Hindustan Aircraft Limited, a Company incorporated on December 23, 1940 merged with the Company, pursuant to the Aircraft Companies' Amalgamation Order dated September 28, 1964. The name of the Company was changed to 'Hindustan Aeronautics Limited' on December 05, 1964 with effect from October 01, 1964 In 1970, the Company established the Helicopter factory at Bangalore. In 1983, the company established the Korwa Division for Advanced Avionics at Korwa, Uttar Pradesh. The status of the Company was changed to Public Limited Company by a Special Resolution of the Members of the Company passed at the Extra Ordinary General Meeting held on July 10, 1995. In 1998, the Company established the Industrial and Marine Gas Turbine Division for aeroderivative gas turbines and industrial engines at Bangalore. In 2000, the company established the Airport Service Centre at Bangalore. The Company's Aircraft Upgrade R&D Centre ('AURDC') was conferred with the 'Raksha Mantri's Award for Excellence in Performance (Design Effort)' in relation to the MiG-27 aircraft for the year 2005-06. In 2006, the Company upgraded the Barrackpore Branch Factory to a Division. The Company was notified as a Navratna Company by the Department of Public Enterprises, GoI through notification on June 27, 2007. The Navratna status provides the Company with strategic and operational autonomy and enhanced powers to make prompt investment decisions, subject to an overall investment ceiling set by the GoI. In 2008, the Company created a separate Helicopter Complex. In 2015, the company carried out restructuring of all R&D Centres under Design Complex. In 2016, the Company upgraded the Korwa Branch of Aerospace Systems and Equipment Research and Design Centre to an R&D Centre. On 29 December 2016, Naini Aerospace Limited was incorporated as a 100% subsidiary of Hindustan Aeronautics. On 2 May 2017, the Company's subsidiary Indo-Russian Helicopters Limited was incorporated. During year 2018-19, Company produced 41 new Aircraft and Helicopters. Additionally, they produced 102 New Aero-Engines and Accessories. It overhauled 213 platforms of various aircraft. Further, 560 Russian and western origin aero-engines were overhauled by the Company during the year under review. During the year 2018-19, Light Combat Helicopter (LCH) completed all weapon integration and firing tests in January, 2019 and is ready for induction. The maiden flight of third prototype (PT3) of Light Utility Helicopter (LUH) was conducted on 14th December, 2018. Advanced Light Helicopter (ALH) blade folding capability was demonstrated to customer on December 19, 2018 on CG 855 helicopter. The LCA Tejas completed mid-air refuelling trial by Wet (actual) Engagement on 10th September, 2018. It accomplished 100% running of HTFE-25 crore 2 Engine with Inlet Guide Vane (IGV) modulation in March, 2019. It indigeneously designed and developed Gas Turbine Electrical Generator (GTEG-60) Auxiliary Power Unit (APU) to start the main engines of AN-32 Military Transport Aircraft was flown on 11th February, 2019. Astra Missile was test fired by the IAF on 26th September, 2018. The LCA Naval Prototype -2 (NP2), safely executed the first contract of the HAL- designed and developed Arrester Hook System (AHS) with arresting wire at moderate taxi-in speed on August 02nd, 2018. The first Mirage 2000 aircraft upgraded to IOC standard with indigenous modification kits was delivered by the Company to the IAF on 01st January, 2019. The Company flew the Light Utility Helicopter (LUH) on 29th December, 2018. During year 2019-20, Company has produced 31 new Aircraft and Helicopters, covering Su-30 MKI, LCA Tejas, Dornier Do228, ALH Dhruv, Cheetal Helicopter and Chetak Helicopter, in addition to the production of 117 New Engines and Accessories. It overhauled 201 platforms including both fixed wing and rotary wing aircraft of various types. Further, 486 aero-engines of Russian and Western origin were also overhauled during the year under review. It has signaled out 7 ALHs of the current year production ahead of schedule for Army and delivered 1 Chetak Helicopter to the Indian Navy ahead of schedule. It has commenced production of Jaguar DARIN III (FOC) Upgrade and started manufacturing of RD-33 Engines. During year 2020-21, Company has produced 44 Nos of new Aircraft and Helicopters, covering Su-30 MKI, LCA Tejas, Dornier Do-228, ALH Dhruv, Light Combat Helicopter (LCH) and Chetak helicopter in addition to the production of 102 New Engines and Accessories. It overhauled 198 Nos of Aircraft and Helicopters. Further, 506 engines were also overhauled during the year 2020-21. The Company produced FOC standard LCA Tejas has been inducted into IAF Squadron The Flying Bullets' on May 27, 2020. Second production line for LCA aircraft has been operationalised and 2 LCAs have been produced in FY 2020-21. Two Light Combat Helicopters (LCH) were deployed for operations at high altitude at short notice to support IAF missions on August 12, 2020. Three Light Combat Helicopters (LCH) have been produced and signalled out against the Letter of Intent of IAF. It overhauled 5 Nos of Su30-MKI aircraft. It received Initial Operational Clearance (IOC) of Light Utility Helicopter (LUH) for the Indian Army from CEMILAC at the Aero India 2021. It received Operational Clearance from CEMILAC for ALH Mk-III for Indian Coast Guard and Indian Navy in January, 2021. The Company handed over three ALH Mk III to the Indian Navy and two ALH to Indian Coast Guard at the Aero India 2021. It demonstrated the tail boom folding operation on ALH Mk-III helicopter in November, 2020. The first Upgraded ALH Mk III CIVIL helicopter has been produced in November, 2020. It indigenously designed and developed a 60kW Gas Turbine Electrical Generator (GTEG-60), the Auxiliary Power Unit (APU) for the Military Transport aircraft AN-32, which has attained operational clearance on May 28, 2020. The 150th Do-228 aircraft, produced by HAL was handed over on November 11, 2020. A digital Pilot Operating Handbook (POH)' was also released as in-house efforts towards automation and Digital India'. It manufactured 300th Advanced Light Helicopter (ALH) which was rolled out and certified on 29th September, 2020. The biggest Cryogenic propellant tank (C32 LH2) ever fabricated for ISRO, was delivered to ISRO on November 28, 2020. FirstISROSENE Propellant Tank' ofsemi cryo developmental project has been formally handed over to LPSC, ISRO on 05th February, 2021. Inner Ring, a critical aero-engine component operating in the hot zone, has been developed and manufactured through 3D printing technology with the collaboration of Wipro Enterprises (P) Ltd. During the year 2021, the Company has entered into a contract for supply of 83 LCA Mk1A to IAF. It carried the production and supply orders of Su-30 MKI aircraft, Light Combat Aircraft (LCA) Tejas, Dornier Do-228 Aircraft, Advanced Light Helicopter (ALH) Dhruv, Light Combat Helicopter (LCH), Chetak helicopter, engines, accessories and aerospace structures to fulfill the requirement of their esteemed customers. It has achieved significant progress in various R&D / Development Projects viz. Basic Trainer Aircraft (HTT-40), Light Utility Helicopter (LUH), Light Combat Aircraft (LCA)- MK1A, Jaguar Darin III Upgrade, Hawk-i and Development of Engines. During the year 2022, the Company has produced 34 numbers of new Aircraft and Helicopters, covering LCA Tejas, Dornier Do228, ALH Dhruv and Light Combat Helicopter (LCH) in addition to the production of 80 New Engines and Accessories, at its various Divisions. It has also overhauled 207 Aircraft / Helicopters and 506 engines during the year. As on March 31, 2022, Company has 2 Subsidiaries including 1 wholly owned Subsidiary and 14 Joint Venture Companies (JVCs) including 2 Not-for-Profit Companies. During year 2021-22, Company handed over 75th ROH Su-30 MKI aircraft to IAF on January 25, 2022. It 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. It 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. It made an 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, HAL signed 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 demonstrated the capability to carry out six turn spins, to the LH and RH sides, which is the most crucial stage in flight trials. The Company 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. It integrated and flown Lithium Main Battery' on HTT-40 and making it first time in the continent using lithium battery for military aviation. It 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). It 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 heaviest Semi-Cryogenic propellant tank (SC120- LOX) ever fabricated by HAL was delivered to Indian Space Research Organization (ISRO) on October 5, 2021. During the year 2022, 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. It launched production of Light Utility Helicopter (LUH). It 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 to boost the Regional Connectivity Scheme (RCS). First commercial flight on the Dibrugarh-Pasighat route commenced on April 12, 2022 by Alliance Air Aviation Limited. It 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. In FY 2022, the Company 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). It 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. It 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. The Company and d 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. It signed an MoU with Max AeroSpace & Aviation Pvt. Ltd., Mumbai on 12th January, 2022 to explore business opportunities for MRO of civil aircraft. It 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. It signed an MoU with Safran Helicopter Engines (SafranHE) on 14th March, 2022 for exploring business opportunities in the area of Helicopter Engines, etc. It 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. It integrated Medical Intensive Care Unit (MICU) on board two ALH MK III of Indian Navy deployed at INS Hansa, Goa during May/June 2021. It carried out Ceremonial First Flight' of upgraded Dhruv Civil Helicopter on November 26, 2021.

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 Company History

Hindustan Aeronautics Limited (HAL), a public sector enterprise, is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. The Operations are organised into five complexes, namely the Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex, and Design Complex, which together include 20 production divisions and 11 research and design centres (R&D Centres) located across India. The Company relies on indigenous research as well as enters into technology transfer and licence agreements to manufacture its products. In addition, the company has entered into 13 commercial joint ventures to grow its operations. Hindustan Aeronautics Limited (HAL) was incorporated as a Private Limited Company with the name 'Aeronautics India Limited' on August 16, 1963. Subsequently, Hindustan Aircraft Limited, a Company incorporated on December 23, 1940 merged with the Company, pursuant to the Aircraft Companies' Amalgamation Order dated September 28, 1964. The name of the Company was changed to 'Hindustan Aeronautics Limited' on December 05, 1964 with effect from October 01, 1964 In 1970, the Company established the Helicopter factory at Bangalore. In 1983, the company established the Korwa Division for Advanced Avionics at Korwa, Uttar Pradesh. The status of the Company was changed to Public Limited Company by a Special Resolution of the Members of the Company passed at the Extra Ordinary General Meeting held on July 10, 1995. In 1998, the Company established the Industrial and Marine Gas Turbine Division for aeroderivative gas turbines and industrial engines at Bangalore. In 2000, the company established the Airport Service Centre at Bangalore. The Company's Aircraft Upgrade R&D Centre ('AURDC') was conferred with the 'Raksha Mantri's Award for Excellence in Performance (Design Effort)' in relation to the MiG-27 aircraft for the year 2005-06. In 2006, the Company upgraded the Barrackpore Branch Factory to a Division. The Company was notified as a Navratna Company by the Department of Public Enterprises, GoI through notification on June 27, 2007. The Navratna status provides the Company with strategic and operational autonomy and enhanced powers to make prompt investment decisions, subject to an overall investment ceiling set by the GoI. In 2008, the Company created a separate Helicopter Complex. In 2015, the company carried out restructuring of all R&D Centres under Design Complex. In 2016, the Company upgraded the Korwa Branch of Aerospace Systems and Equipment Research and Design Centre to an R&D Centre. On 29 December 2016, Naini Aerospace Limited was incorporated as a 100% subsidiary of Hindustan Aeronautics. On 2 May 2017, the Company's subsidiary Indo-Russian Helicopters Limited was incorporated. During year 2018-19, Company produced 41 new Aircraft and Helicopters. Additionally, they produced 102 New Aero-Engines and Accessories. It overhauled 213 platforms of various aircraft. Further, 560 Russian and western origin aero-engines were overhauled by the Company during the year under review. During the year 2018-19, Light Combat Helicopter (LCH) completed all weapon integration and firing tests in January, 2019 and is ready for induction. The maiden flight of third prototype (PT3) of Light Utility Helicopter (LUH) was conducted on 14th December, 2018. Advanced Light Helicopter (ALH) blade folding capability was demonstrated to customer on December 19, 2018 on CG 855 helicopter. The LCA Tejas completed mid-air refuelling trial by Wet (actual) Engagement on 10th September, 2018. It accomplished 100% running of HTFE-25 crore 2 Engine with Inlet Guide Vane (IGV) modulation in March, 2019. It indigeneously designed and developed Gas Turbine Electrical Generator (GTEG-60) Auxiliary Power Unit (APU) to start the main engines of AN-32 Military Transport Aircraft was flown on 11th February, 2019. Astra Missile was test fired by the IAF on 26th September, 2018. The LCA Naval Prototype -2 (NP2), safely executed the first contract of the HAL- designed and developed Arrester Hook System (AHS) with arresting wire at moderate taxi-in speed on August 02nd, 2018. The first Mirage 2000 aircraft upgraded to IOC standard with indigenous modification kits was delivered by the Company to the IAF on 01st January, 2019. The Company flew the Light Utility Helicopter (LUH) on 29th December, 2018. During year 2019-20, Company has produced 31 new Aircraft and Helicopters, covering Su-30 MKI, LCA Tejas, Dornier Do228, ALH Dhruv, Cheetal Helicopter and Chetak Helicopter, in addition to the production of 117 New Engines and Accessories. It overhauled 201 platforms including both fixed wing and rotary wing aircraft of various types. Further, 486 aero-engines of Russian and Western origin were also overhauled during the year under review. It has signaled out 7 ALHs of the current year production ahead of schedule for Army and delivered 1 Chetak Helicopter to the Indian Navy ahead of schedule. It has commenced production of Jaguar DARIN III (FOC) Upgrade and started manufacturing of RD-33 Engines. During year 2020-21, Company has produced 44 Nos of new Aircraft and Helicopters, covering Su-30 MKI, LCA Tejas, Dornier Do-228, ALH Dhruv, Light Combat Helicopter (LCH) and Chetak helicopter in addition to the production of 102 New Engines and Accessories. It overhauled 198 Nos of Aircraft and Helicopters. Further, 506 engines were also overhauled during the year 2020-21. The Company produced FOC standard LCA Tejas has been inducted into IAF Squadron The Flying Bullets' on May 27, 2020. Second production line for LCA aircraft has been operationalised and 2 LCAs have been produced in FY 2020-21. Two Light Combat Helicopters (LCH) were deployed for operations at high altitude at short notice to support IAF missions on August 12, 2020. Three Light Combat Helicopters (LCH) have been produced and signalled out against the Letter of Intent of IAF. It overhauled 5 Nos of Su30-MKI aircraft. It received Initial Operational Clearance (IOC) of Light Utility Helicopter (LUH) for the Indian Army from CEMILAC at the Aero India 2021. It received Operational Clearance from CEMILAC for ALH Mk-III for Indian Coast Guard and Indian Navy in January, 2021. The Company handed over three ALH Mk III to the Indian Navy and two ALH to Indian Coast Guard at the Aero India 2021. It demonstrated the tail boom folding operation on ALH Mk-III helicopter in November, 2020. The first Upgraded ALH Mk III CIVIL helicopter has been produced in November, 2020. It indigenously designed and developed a 60kW Gas Turbine Electrical Generator (GTEG-60), the Auxiliary Power Unit (APU) for the Military Transport aircraft AN-32, which has attained operational clearance on May 28, 2020. The 150th Do-228 aircraft, produced by HAL was handed over on November 11, 2020. A digital Pilot Operating Handbook (POH)' was also released as in-house efforts towards automation and Digital India'. It manufactured 300th Advanced Light Helicopter (ALH) which was rolled out and certified on 29th September, 2020. The biggest Cryogenic propellant tank (C32 LH2) ever fabricated for ISRO, was delivered to ISRO on November 28, 2020. FirstISROSENE Propellant Tank' ofsemi cryo developmental project has been formally handed over to LPSC, ISRO on 05th February, 2021. Inner Ring, a critical aero-engine component operating in the hot zone, has been developed and manufactured through 3D printing technology with the collaboration of Wipro Enterprises (P) Ltd. During the year 2021, the Company has entered into a contract for supply of 83 LCA Mk1A to IAF. It carried the production and supply orders of Su-30 MKI aircraft, Light Combat Aircraft (LCA) Tejas, Dornier Do-228 Aircraft, Advanced Light Helicopter (ALH) Dhruv, Light Combat Helicopter (LCH), Chetak helicopter, engines, accessories and aerospace structures to fulfill the requirement of their esteemed customers. It has achieved significant progress in various R&D / Development Projects viz. Basic Trainer Aircraft (HTT-40), Light Utility Helicopter (LUH), Light Combat Aircraft (LCA)- MK1A, Jaguar Darin III Upgrade, Hawk-i and Development of Engines. During the year 2022, the Company has produced 34 numbers of new Aircraft and Helicopters, covering LCA Tejas, Dornier Do228, ALH Dhruv and Light Combat Helicopter (LCH) in addition to the production of 80 New Engines and Accessories, at its various Divisions. It has also overhauled 207 Aircraft / Helicopters and 506 engines during the year. As on March 31, 2022, Company has 2 Subsidiaries including 1 wholly owned Subsidiary and 14 Joint Venture Companies (JVCs) including 2 Not-for-Profit Companies. During year 2021-22, Company handed over 75th ROH Su-30 MKI aircraft to IAF on January 25, 2022. It 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. It 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. It made an 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, HAL signed 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 demonstrated the capability to carry out six turn spins, to the LH and RH sides, which is the most crucial stage in flight trials. The Company 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. It integrated and flown Lithium Main Battery' on HTT-40 and making it first time in the continent using lithium battery for military aviation. It 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). It 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 heaviest Semi-Cryogenic propellant tank (SC120- LOX) ever fabricated by HAL was delivered to Indian Space Research Organization (ISRO) on October 5, 2021. During the year 2022, 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. It launched production of Light Utility Helicopter (LUH). It 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 to boost the Regional Connectivity Scheme (RCS). First commercial flight on the Dibrugarh-Pasighat route commenced on April 12, 2022 by Alliance Air Aviation Limited. It 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. In FY 2022, the Company 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). It 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. It 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. The Company and d 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. It signed an MoU with Max AeroSpace & Aviation Pvt. Ltd., Mumbai on 12th January, 2022 to explore business opportunities for MRO of civil aircraft. It 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. It signed an MoU with Safran Helicopter Engines (SafranHE) on 14th March, 2022 for exploring business opportunities in the area of Helicopter Engines, etc. It 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. It integrated Medical Intensive Care Unit (MICU) on board two ALH MK III of Indian Navy deployed at INS Hansa, Goa during May/June 2021. It carried out Ceremonial First Flight' of upgraded Dhruv Civil Helicopter on November 26, 2021.

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

   

Hindustan Aeronautics Ltd Company Background

C B AnanthakrishnanC B Ananthakrishnan
Incorporation Year1963
Registered OfficePost Box No 5150,15/1 Cubbon Road
Bangalore,Karnataka-560001
Telephone91-080-22320001,Managing Director
Fax91-080-22320758
Company Secretary
AuditorMaharaj N R Suresh and Co LLP
Face Value10
Market Lot1
ListingBSE,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Hindustan Aeronautics Ltd Company Management

Director NameDirector DesignationYear
Chandraker BhartiNominee (Govt)2022
Arup ChatterjeeDirector (Engineering, R & D)2022
Tessy ThomasNominee (Govt)2022
C B AnanthakrishnanChairman & MD & Dir.(Finance)2022
Divya GuptaIndependent Director2022
Deepak Abasaheb ShindeIndependent Director2022
EJIPURA PUTHRAPPA JAYADEVADirector (Operations & HR)2022

Hindustan Aeronautics Ltd Listing Information

Listing Information
BSE_500
BSE_CG
BSE_200
BSEDOLLEX
BSE_PSU
NIFTYJR
CNX500
BSEMID
CNX100
CNX_PSE
CNX200
CNXDIVIDEN
BSECPSE
NFT100EQWT
BSEALLCAP
INDUSTRIAL
NFTQULTY30
LMI250
BSEMOI
BSE100LTMC
NFTYLM250
NFTY200M30
NF500M5025

Hindustan Aeronautics Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Sale of Services NA 0009170.87
Finished Goods NA 0008528.51
Spares NA 0002659.27
Development NA 000452.69
Miscellaneous NA 000406.53
Provision no Longer Required NA 000185.55
Other Operating Revenue NA 00027.19
Disposal of Scrap & Surplus NA 0007.77
Adjustment NA 0000
Prior Period Items NA 0000
Repairs and Overhaul NA 0000
Sales NA 0000

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