annual report 2011-12 - Heavy Engineering Corporation Limited

ANNUAL REPORT 2011-12
iii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that
were reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company for the year under review.
iv) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with
the provisions of the Companies Act,1956 for safeguarding the
assets of the Company and for preventing and detecting fraud
and other irregularities.
v) that the Directors have prepared the Annual Accounts for the
financial year ended March 31, 2012 on a going concern basis.
21. FOREIGN EXCHANGE
The foreign exchange outgo during the year was ` 56.39 Crores.
22. INFORMATION UNDER SECTION 217 (2A) OF THE
COMPANIES ACT, 1956
None of the employees of the Company was in receipt of remuneration
in excess of limits prescribed under section 217 (2A) of the Companies
Act, 1956, read with Companies (Particulars of Employees) Rules,
1975 during the financial year ending 31 st March, 2012.
23. CORPORATE GOVERNANCE
Report on Corporate Governance is placed at Annexure-B.
24. STATUTORY AUDITOR
The Comptroller & Auditor General of India (CAG) has appointed
M/s Anjali Jain & Associates, Chartered Accountants, Ranchi as the
Statutory Auditor of the company for the financial year 2011-12.
25. COMMENTS OF C&AG AND STATUTORY AUDITORS AND
MANAGEMENT’S REPLIES THEREON
The comments of C&AG under Section 619 (4) of the Companies
ACT, 1956 on the Accounts of the Company for the year ended
31.03.2012 along with the Review of Accounts of your Company by
C&AG and Statutory Auditors’ observations along with Management’s
replies thereto are furnished in ANNEXURE-‘C’
26. BOARD OF DIRECTORS
During the year, there were two part time Official Directors on the
Board of HEC, in addition to the CMD, Director (Finance), Director
(Marketing) and Director (Production).
Shri R. Misra, Director (Finance) assumed the additional charge of
Chairman-cum-Managing Director w.e.f. 1.1.2012 and took over as
CMD w.e.f. 31.05.2012.
During the year Shri G.K. Pillai, CMD and Shri Bharat Prasad,
Director (Marketing) superannuated. Board places on record its deep
appreciation for the valuable services and contribution made by them
during their tenure on the Board of Directors of HEC Ltd. In addition,
Shri Saurabh Chandra, on 17-4-2012 relinquished the position of
part time official Director on Board of HEC Ltd.
27. AUDIT COMMITTEE
As there were no independent Directors on the Board of HEC Ltd. the
Audit Committee could not be reconstituted.
28. ACKNOWLEDGEMENT
The Board also gratefully acknowledges the support and guidance
received from the various Ministries of the Govt. of India.
The Board is particularly grateful to the Department of Heavy
Industry, Ministry of Heavy Industries & Public Enterprises for their
continued support in the revival of this Company.
The company also wishes to place on record its thanks to the Govt. of
Jharkhand for all their support in the revival process of the company.
The company wishes to place on record its appreciation of the
continued co-operation received from all its stake holders including
the suppliers, banks, financial institutions, the Comptroller and
Auditor General of India and Statutory Auditors.
The company wishes to record its deep gratitude to all the members
of the HEC family who have worked very sincerely and dedicatedly in
bringing this company to another year of profitability and growth.
For and on behalf of Board of Directors
Dated : 27.11.2012
(R. Misra)
Chairman-cum-Managing Director
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