HEG Ltd. - Audit Report / Information 2020

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HEG/ SECTT /2020 17th J une,2020

1	BSE Limited	2	National Stock Exchange of India Limited
	P J Towers		Exchange Plaza, 5th Floor
	Dalal Street		Plot No.C/1, G Block, Bandra -Kurla Complex
	MUMBAI-400 001.		Bandra (E),
	Scrip Code : 509631		MUMBAI-400 051.
			Scrip Code: HEG

Sub: Outcome of Board Meeting held on 17th June, 2020

Dear Sirs,

Pursuant to Regulation 30 & 33 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), the Board of Directors have inter-aha approved and taken on record the following at its meeting held today i.e. 1711, June, 2020.

1. Audited Financial Results (Standalone and Consolidated) for the quarter and financial year ended 31st March, 2020 alongwith Auditors Report (Standalone and Consolidated) thereon and Declaration in respect of Audit report (Standalone & Consolidated) with unmodified opinion under Regulation 33(3)(d) of the Listing Regulations are enclosed herewith as Annexure - 1.
1. The Board has not recommended any final dividend. The interim dividend of Rs.25 / per equity share aheady paid shall be treated as the final dividend for the financial year 2019- 20. Thus, the total dividend for the financial year 2019-20 remains Rs.25/- per equity share.

The date of the ensuing Annual General Meeting will be intimated to the Stock Exchanges in due course of time.

1. We wish to inform you that as a process of natural progression and succession planning, the Board of Directors;
- a) accepted the request of Shri Shekhar Agarwal (holding DIN 00066113), Director of the Company to relinquish from his position as Vice Chairman with immediate effect. However, he will continue to be a Director on the Board of the Company.
- b) upon the recommendation of Nomination & Remuneration Committee elected Shri Riju Jhunjhunwala (holding DIN 00061060) Director of the Company as Vice-Chairman of the Company with immediate effect.

Corporate Office : Bhilwara Towers, A-12, Sector-1 Naida· 201 301 (NCR-Delhi), India Tel.: +91-120-4390300 (EPABX) Fax: +91-120-4277841 Website: www.lnjbhilwara.com Website: www.hegltd.com

Regd. Office : Mandideep (Near Bhopal) Dist!. Raisen • 4620'ffl•-.,... (Madhya Pradesh), India Tel.: +91-7480-405500, 233524 to 233527 Fax: +91 -7480-233522

Corporate Identification No.: L23109MP1972PLC008290 1

HEG LIMITED

The Board Meeting commenced at 12.00 Noon and concluded at 5.55 P.M.

This is for your information and record.

Thanking you,

dhary) L'6-ft\u,a.r1ySecretary vestor@ln'bhilwara.com

Encl: as above

HEG LIMITED

Noida - 201 301 (NCR-Delhi), India (Madhya Pradesh), India Fax: +91-120-4277841 Fax: +91-7480-233522 Website: www.lnjbhilwara.com Website: www.hegltd.com Corporate Identification No.: L23109MP1972PLC008290 2

Corporate Office : Regd. Office : Bhilwara Towers, A-12, Sector-1 Mandideep (Near Bhopal) Dist!. Raisen - 462046 Tel.: +91-120-4390300 (EPABX) Tel.: +91-7480-405500, 233524 to 233527

GI,	HEGLIMI	TED
	CoOffi: BhilToAaterporcewarawers,	Se-121,ctor -,	NOIDA -20	1301
	ReistedOfficMdide(NeBhal),gere :aneparop	DisRaisett.n,	Madhya Prad	h-462046.es
	PhFa0120-4390300;one :	0120-4277x :	841
	CIN: L2.3109MP1972PLC008290Websit.heltde: wwwg	Email:he.comg.	or@invlnjest	bhilwara.com
	SSCSSTATEMENTOFTANDALONEAUDITEDFINANIALREULTFO	R THEQUARTE	R ANDYEAR	SENDED31	CT MARH,2020
						inCr
			QuEndedarter		YeEndar	oresed
SI.No	Particulars	31-03-2020	31-12-2019	31-03-2019	31-03-2020	31-03-2019
		ditAued	ditUned	ditAued	ditAued	ditAued
I	Refrotio	374.44	au393.69	346.65	149.02	592.83
II	OpvenuemeranOt	42.29		1,42.28	2,143.76	6,109.19
Ill	her IncomeTotalRe{1+11)	416.73	27.28420.97	1,388.93	2,292.78	6,702.02
	venue
IV	Expenses
	Cosf mrials ced(Refer5)t oateteonsumno	468.61	261.01	463.96	1,558.13	1,611.84
	Purchofck-indesto-traase	-	-	-		-
	Chin irief finishedds,ork-inndck-in-trade (Referntostoangesnves ogoow- progress a	294.81	7.28	(117.31)	62.95	(497.06)
	)note 5Embenefitse (Refer6)teeeensno	(5)3.7	17.48	43.17	65.60	197.57
	loypexpFinostance c	8.58	8.73	5.86	36.51	17.97
	Deciationdisatioortpren aamn expense	18.88	17.79	18.20	72.13	72.39
	PondFuel (Nef lndivisiol Phases)t oterwer anaurc	34.56	39.90	46.58	163.31	183.21
	Other Expenses	77.64	63.28	122.25	304.86	439.02
	Total{IV)expenses	899.32	415.47	582.71	2,263.49	2,024.94
V	Profit/(Loss)befotiol itnd{Ill-IV)taxreexcepnaems a	(482.59)	5.50	806.22	29.29	4,677.08
VI	ExctionalItemeps	-	-	-	-	-
VII	fit/(ss)efo(I)ProLobTaxV-Vre	()482.59	5.50	806.22	29.29	4,677.08
VIII	Taxexpense
	(1)Cunt Trreax	{120.79)	(2.73)	278.98	(0.19)	1,619.35
	(2)DeferredTax	4.20	2.29	2.82	(23.90)	7.30
IX	Net Profit/(Loss)fortheriod(VII-VIII)e p	()366.00	5.94	524.42	53.37	3,050.43
X	Other ChensiInce (Nef Ts)t oompreveomaxe
	A (i)Itethwill nbelassifiedofir loatottot omsrecprss	(0.98)		0.18	(0.70)	(8)0.9
	ii)Increlatiitethwill nbelassifiedfitlos(e ttoatottoomaxngmsrecproors	0.25	-	(0.06)	0.18	0.34
	B (i)Itethwill beclified trofit or loatmse rasso pss	-	-	-	-
	(ii)Increlatiitethwill beclified trofit or loe ttoatomaxngmse rasso pss		-		-
		366.73	5.94	524.54	52.85	3,049.79
XI	TotalCorehsive Ifor theriodmpenncomee p	()
XII	Paid -UpEquityShCaital(Fa ce Valu10/- pshare)arepe~er	38.60	38.60	38.60	38.60	38.60
XIII	Res(ExcludinReluation Rs)ervesgvaeserve	-	-	-	3,384.28	3,680.40
XIV	r S(~) -(.)EarniPeharBasicRsngse1	()94.83	1.54	131.39	13.83	763.60
	Diluted(Rs.)-	(9483)	1.54	131.39	13.83	763.60

	SEGMENTWISEREVENUE,RE	SULTS,ASSETSANDSE	GMENTLIABILI	TIES
						Crinores
			QuEndedtearr		YeEnar	ded
SI.No	Paicularrts	31-03-2020	31-12-2019	31-03-2019	31-03-2020	31-03-2019
		Audited	Unditedau	Audited	Audited	Audited
A	SeRentgmevenue
	Grhiteap	358.56	38137.	1,343.81	2,11847.	582.286,
	Power	15.87	56.6	239.7	69.44	121.47
	Ohetrs	0.00	0.00	-	0.01	0.01
	Tolta	374.43	393.69	1,373.18	2,187.29	6,703.76
	LeInlestet sss:r segmena	(0.01)	-	26.53	38.26	110.39
	RefroOpiontvenuemeras	34.447	393.69	1,346.65	2,149.02	6,592.83
B	SeReltsntgmesu
	Prfibefodfinafroh sttaxttoreannce cosmeacegmen
	Grhiteap	(489.5)6	(7.93}	73.116	(35.80}	4,617.57
	Power	13.13	(0.9}6	(2.21)	13.55	(17.62}
	Ohetrs	-	-	-	-	-
	Tolta	(46.52)7	(8.62)	760.90	(22.24)	4,599.95
	Add/Less:
	InInctetresome	287.	427.	23.05	35.92	49.75
	GainlefInv(Includingin/(los)iFairValuaion)tmtststonsaoesengason	18.78	14.80	22.64	73.25	51.49
	OheUnllocbleIncf ett oraaomenexpenses	(23.55)	0.36	5.49	{21.13}	(6.13}
	Finatnce cos	(8.58)	(8.3}7	(5.86}	(36.51)	(19}7.7
	fitfoTotalPrBeTaorex	(482.59)	5.50	806.22	29.29	4,677.08

C	SeAsnttsgmese
	Grhiteap	2464.74	3318.32	341179.	2464.74	3479.11
	Power	147.43	111.24	143.13	14437.	143.13
	/OUnlloctedtheaars	1737.34	1539.41	1447.43	1737.34	1447.43
	TolSeAstanttsgmese	4349.15	4968.97	5069.67	4349.15	5069.67
D	SeLiabilitiesntgme
	Grhiteap	799.11	933.78	1120.62	799.11	1120.62
	Power	8.36	10.39	9.62	8.36	9.62
	Unllocd/Ohetetaars	118.89	118.87	220.44	118.89	220.44
	TolSeLiabilitiestantgme	926.63	1063.04	1350.68	926.63	1350.68

	STATEMENTOFASSETSANDLIAB	ILITIES	inCrores
	Paicularrts	As31-03-2020ta	As31-03-2019ta
		Audited	Audited
A	ASSETS
(1)	Nonttsn-curreasse
	)PrPiandEqipty,t antaopernume	733.58	784.48
	Cab)ital wk-in-porprogress	100.16	18.58
	)InvPrtmttycesenoper	3.37	3.54
	d)RightAstotusese	7.39	-
	)Godwilleo	-	-
	f)OheIntiblettsrangasse	0.30	0.35
	)Intibletsdedelopntgangasseunrveme	-	-
	h)BiologicalAshehabelantstr ttsseonarerp	-	-
	i)Finaial atsncsse	-	-
	()iInvtmtsesen	1,139.38	758.80
	(ii)Trdeivablesarece	-	-
	(iii)Loans	17.42	11.19
	(iv)OheFinaialAsttsrncse	-	-
	j)Defed()taxtstrreassene	-	-
	))kIncTaAs{Netstomexse	143.93	539.9
	I)Ohetnttsr non-curreasse	144.65	17.27
	TolNoCuAstanttsnrrese	2,290.63	1,634.16
()2	Cunttsrreasse
	()Inviestoaenr	1,005.14	1,308.39
	{blFinaial atsncsse	-	-
	()iInvtmtsesen	1536.	108.24
	(ii)Trdeivablesarece	399.41	1,186.88
	()Ca&Caiiihh eivalentsssqu	32.80	219.6
	(iv)Bakbalanheha(iii)botr tnces onave	404.48	528.16
	()Lovans	0.78	0.62
	(i)OheFinaialAsttsvrsncse	86.6	5.38
	()Ohetnttscr curreasse	12.897	268.66
	TolCuAstanttsrrese	2,058.88	3,435.50
	TotalAstsse	4,349.51	5,069.67

B	Q&SEUITYLIABILITIE
	Eqityu
	()Eqihailtytaausrecap	38.06	38.06
	()Obheittyr equ	3,384.28	3,80.406

	LIABILITIES
(1)	Noliabilitiesntn-curre
	()Finaialliabiliiestanc
	(i)Boingrrosw	-	-
	(ii)TrdePablesaya	-	-
	()iiiLeLiabilityase	1.14	0.41
	(iv}Ohefinaialliabiliies-SiDeitttytrncecurpos	-	-
	(blPrisionovs	3.91	3.87
	()Defedliabiliies(N e)taxttcrre	102.05	12136.
	()Odheliabiliiestttr non-curren	3.01	2.40
	CuTolNoLiabilitytantnrre	110.12	132.81

(2)	Cuiaiitiesntlblrre
	()Finaialliabiliiestanc
	(i)Boingrrows	592.62	666.36
	(ii)TrdePablesaya
	()OuAToldingduf micrisedll eisetatstatetenesoo enrprs ansmanrprs	586.	3.99
	(B)TolOudingduf cdihehaicrisedlltatstatotttenesorersornmoenrprs ansma	12237.	376.08
	iseteenrprs
	(iii)LeLiabilityase	0.50	0.01
	O(iv)hefinaialliabiliiesttrnc	5.622	130.16
	()Obthetliabilitiesr curren	12.55	16.05
	()Prisioncovs	6.36	189.7
	(d)CuTaLiabiliies(N e)tttrrenx	5.46	5.43
	TolCuLiabilitytantrre	816.51	1,217.87

	TotalEqitydLiabilitiesuan	4,349.51	5,069.67

		Crinores
PARTICULARS	YeEndedar	YeEndedar
	31st Mh,2020arc	31st Mh,2019arc
CASHFLOWFROMOPERATING ACTIVITIES	297236((250.7(73(1.2(358130192(345
Profitbefore Tax	.29	4,677.08
Adjust fotinndashtiotmtrenr nonoperag anon cansacns
DeciationdAmortisatiopren an	.13	72.39
IntPaidstere	.51	17.97
t(fit)/Lold/NePrortylant anduipntdisdedssonpropepeqmesocar	0.88	3.35
Allfor Ed Credit Lcteowancesxpeosses	3.26)	5.35
d (Gain)/LoUnlizeduetoeffect of exchatechats andliabilitireassngeranges on assees	.88)	(25.47

BadDebts	9	0.22
Ga/in oalefair valuatiofinvestntsn sonme	.25)	(51.49
Dividenddearne	5)
Inteivedstererec	.92)	(49.75
Adjusforchind liabilitiestmtsetsenangesassan
(lnc)/De inTradivablereaseecrease reces	8.20	(194.24
(lncse)/De inInrientoreaecreasves	53.2	(796.95
(lncse)/DeinLoafincial andOthetsreacreasens,anr asse	.03	(689.37
lncse/(De)inLiabilitiesd pisioreacreaseanrovns	.98)	145.79
Cash gtedfrotioeneramoperans	967.S4	3,114.88
Ince tidomaxpa	103.76	1,626.65
Net Cashedfrotinctivities(A)ratgenemoperag a	863.78	1,488.23
CASHFLOWFROMINVESTINGACTIVITIES
AdditioninProlanndEquip(includingCaitalork-ins)rtyt antspepmepw-progres	(111.24)	(48.79
Sale of PPlaandEipmertntentropyqus	1.25	1.07
(se)/Der ClncinAdfoitalExnditurreacreasevancesappee	(125.60)	(11.40
se/()in CCalncDereditors fitalExnditureacreaseorppere	15.74	3.70
PurchofInvestntsaseme	(1,092.01)	(666.29
Sale of Instmtsveen	876.39	-
Dividendeivedrec	1.25
Inteivedstererec	33.72	45.94
t Cs (NeashedininvestingtivitieBlusac	(400.51)	(8)675.7
CASHFLOWFROMFINANCINGACTIVITIES
Reofrkinitalbowin(ont basis)ntpaymewog caprrogsne	(74.04)	368.91
IntPaid(includinginleliabili)stteresttyereonase	(36.51)	(17.97
Paoflealiabilityentymse	(0.10)
DividendPaid	(289.47)	(319.67
DividenddistributiTaaidonx p	(59.50)	(65.71
f EShCBuback oityitalquareapy	-	(754.03)
Net Cashedin finaingctivities(C)usnca	(459.62)	(788.47)
NET INCREASE(DECREASE)INCASHANDCASHEQUIVALENTS(A+B+C)	3.64	23.99
Cashandshuivalentsatthe binningoftheriodcaeqe p	29.16	5.17
eg5Cashandshuivalentsatthndoftheriodcaeqe epe	32.80	29.16

Notes:

1 The above Standalone financial results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 as prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued there under.
2 Financial results have been reviewed by Audit Committee and approved by Board of Directors in their respective meetings held on 17th June, 2020 and have been audited by the Statutory Auditors of the Company. The Statutory Auditors have expressed an unmodified opinion on the aforesaid results.
3 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases" applied to all lease contracts existing on April 1, 2019 using the modified retrospective method along with the transition option to recognise Right-of-Use asset (ROU) at an amount equal to the lease liability. On transition the leases that were classified as finance leases, applying Ind AS 17, an amount of Rs. 6.34 crore has been reclassified from Property, Plant and Equipment to Right of use assets. An amount of Rs. 0.01 crore has been reclassified from other financial liability - current to lease liability - current and an amount of Rs. 0.41 crore has been reclassified from other financial liability - non current to lease liability - non current. Consequently there has been no adjustment to the opening balance of retained earnings.

The lease term in respect of all Operating leases ends within 12 months of the date of initial application and accordingly the company has elected to account for such leases as short term lease and has recognised the lease payments as rental expense.

The adoption of this standard does not have any significant impact on the profit and earning per share of the current period.

4 The company has elected to exercise the option permitted under section 115BAA of the Income tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019. Accordingly, the Company has re-measured its deferred tax liability as on 31 March 2019 on the basis of rate prescribed in the said section during the current year.
5 The Company, in accordance with the applicable Ind AS, has recognized its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable and has accordingly written down the cost of inventory by Rs.427 crores [included in cost of raw material consumption (RM) Rs. 321 crores and in changes in inventories of finished goods and work-in-progress (FG & WIP) Rs. 106 crores in the quarter ended March 31, 2020, Rs.16 crores (included in Raw Material Rs. 5 crores and in changes in inventories of Finished Goods and WIP Rs.11 crores) in the quarter ended December 31, 2019 and Rs. 459 crores (included in Raw Material Rs. 326 crores and in changes in inventories of Finished Goods and WIP Rs. 133 crores) in the Financial Year ended March 31, 2020.
6 Up to the period of nine months ended December 31,2019, the company had made a provision of Rs 19.21 crore for the profit related incentives and commission payable to the employees including CMD of the company which was grouped under the head Employee benefit Expenses. Due to sharp fall in the profits during the quarter ended March 31, 2020, the said provision needed to be reversed resulting into the negative figure of employee benefit expenses of Rs. 3.75 crore for the quarter ended March 31, 2020.

7 The figures of quarter ended 31 March 2020 and 31 March 2019 are the balancing figures between the audited figures in respect of full financial year and the published figures of quarter ended 31 December 2019 and 31 December 2018 respectively, which were subject to limited review by the Statutory Auditors.

8 World Health Organisation (WHO) declared outbreak of coronavirus disease (COVID-19) a global pandemic on March 11,2020 consequent to this, government of India declared lockdown on March 23, 2020 and the company temporarily suspended the operations of the company in compliance with the lockdown instructions issued by central and state governments. COVID-19 has impacted the normal business operations of the company by way of interruption of production, supply chain disruptions, unavailability of personnel, closure/lock down of production facilities etc. during the lock-down period which has been extended till May 17,2020. However, production and supply of goods has commenced during the month of April 2020. The Company has concluded that the impact of COVID-19 is not material on long term basis based on aforesaid events. Due to the nature of the pandemic, the Company will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

The Company has made detailed assessment of its liquidity position for the next year and t he recoverability and carrying value of its assets comprising property, plant and equipment, intangible assets, right of use assets, investments, inventory and trade receivables and other financial assets. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of COVID-19 on the Company's financial results may differ from that estimated as at the date of approval of these standalone financial results. The Company w ill continue to closely monitor any material changes arising of future economic conditions and impact on its business.

9 Operations at our Hydro Power Plant at Tawa are seasonal in nature. The plant generally remains closed in the 1st quarter, starts operating in the 2nd quarter, peaks in the 3rd quarter before tapering down in the last quarter.
10 IThe figures of the previous period have been regrouped / rearranged wherever considered necessary to make them comparable with current period classification.
11 IThe Board has not recommended any final dividend. The interim dividend of Rs.25/- per equity share already paid shall be treated as the final dividend for t he financial year 2019-20. Thus, the total dividend for the financial year 2019-20 remains Rs.25/- per equit y share.

For HEG Limited

RA VI Digitally signed by JHUNJHUNWAL RAVIJHUNJHUNWAL Date: 2020.06.17 A 17:14:06 +os•30• Ravi Jhunjhunwala Chairman, Managing Director & CEO DIN No.00060972

Place : Noida(U.P) Dated : 17th June, 2020

HI6:	HEGLIM	ITED
	CoOffic: BhilToterporaewarawers,	A-12Se1,ctor -,	NOIDA20-	1301
	(Reistd OfficMdidNeBhalgeree :aneeparop	),Distt.Raisen,	Madha Py	radh-46204es	6.
	Ph0120-4390300;one :	Fax: 0120-427	7841
	CINC0: L23109MP1972PL08290Website:w.hegww	ltdEmail:he.com	or@investlnjg.	bhilwara.com
	STF CSOCIAESTSATEMENT OONLIDATED AUDITEDFINANL RUL	QFOR THEUA	RTERANDYE	ARENDED31	STCHMAR2020,
						Crinores
			QuEndedarter		YeaEndr	ed
SI.No	Particulars	31-03-2020	31-12-2019	31-03-2019	31-03-2020	31-03-2019
		Audited	Unditedau	Audited	Audited	Audited
I	Reve fOionratenurompe	374.44	393.69	1,346.6S	2,149.02	6,S92.83
II	OthIncerome	42.29	27.28	42.28	143.76	109.19
Ill	(1)TotalRe1+1venue	416.73	420.97	1,388.93	2,292.78	6,702.02

IV	ExpensesCof mrials ced(Refere 5)st oatenotonsum	468.61	261.01	463.96	1,558.13	1,611.84
	Purchofck-indesto-traase		-	-
	Chin irief finishedds,ork-inntoangesnves ogoow- progress	294.81	7.28	()117.31	62.95	()497.06
	andock-inde(Refer)st-tranote 5
	Emloybenefitse (Refer)note 6peeexpens	(5)3.7	17.48	43.17	65.60	197.57
	Finostance cDeciationdortisation aamn ense	8.5818.88	8.7317.79	5.8618.20	36.5172.13	17.9772.39
	prexpeel (f lnes)PowandFuNet oterdivisiol Phasernau rc	34.56	39.90	46.58	163.31	183.21
	Other Expenses	77.64	63.28	122.25	304.86	439.02
	Total(IV)expenses	899.32	415.47	582.71	2,263.49	2,024.94
V	fit/(s)beftioite(IV}ProLosnald tIll-oreexcepmsanax	(482.59	)5.50	806.22	29.29	4,677.08
VI	ExctionalIteepms	-	-
VII	Profit/(Loss)befTax (V-VI)ore	(482.59)	5.50	806.22	29.29	4,677.08
VIII	Taxexpense
	(1)Cunt Trreax	(}120.79	(2.73}	278.98	(9}0.1	.351,619
	(2)DeferredTax	4.20	2.29	2.82	(23.90}	7.30
IX	ShofProfit/(loss)ofociateareasss	(10.96	(7))7.1	()42.14	14.26	(24.27)
X	it/(ss)(Net ProfLofor theriodVII-Vlll+IX}e p	(376.96	)(1.23}	482.27	67.63	3,026.16
XI	CoOthrehiveIne (Net of Ta)ermpenscomxes
	A.(i)Itethwill nbelassifiedfitlosatottomsrecproors	(8)0.9		0.18	(0)0.7	(0.98)
	(ii)Increlatiitemhaillt beclified trofit or loe ttos tt womaxngnoe rasso pss	0.25	-	(6)0.0	0.18	0.34
	(i)wilssifiedofi8.Itethatl beclatot or lomsreprss	-	-	-	-	-
	(ii)Increlatiitethwill beclassifiedofir loe ttoattot oomaxngmsreprss				-
	C. Sharf Othehensive InofAsiatee or comprecomesocs	(0.08)	(0.01)	0.04	(0.11)	0.05
XII	TotalCorehiveIne ftheriodmpenscomorpe	(377.78	(4))1.2	482.43	67.00	3,025.57
XIII	e tPaid -UpEquitShCaital (Face Valu/- pshare)10yareper	38.60	38.60	38.60	38.60	38.60
XIV	Re(ExcludingReluation Rs)servesvaeserve	-	-		3,473.12	3,755.09
xv	EarninPer Sha('() -Basic (Rs.)gsre1	(97.67	(2))0.3	124.96	17.52	757.53
	Diluted(Rs.)-	(9767)	(0.32)	124.96	17.52	757.53

	SSSEGMENTWIEREVENUE,RE	S,SSSSULTAETANDE	GMENTLIABILI	STIE
						inCrores
			QuEndedtearr		YeEnar	ded
SI.No	Paicularrts	31-03-2020	31-12-2019	31-03-2019	31-03-2020	31-03-2019
		Audited	Unditedau	Audited	Audited	Audited
A	SeRentgmevenue
	Grhiteap	358.56	38713	1,343.81	2,117.84	6,582.28
	Power	15.87	56.6	29.37	69.44	121.47
	Ohetrs	0.00	0.00	-	0.01	0.01
	Tolta	374.43	393.69	1,33.187	2,187.29	6,703.76
	LeInlestet sssr segmena:	(0.01)	-	26.53	38.26	110.93
	RefroOpionatvenuemers	374.44	393.69	1,346.65	2,149.02	6,592.83
B	SeReltsntgmesu
	Prfibefodfinafroh sttaxttoreanncecosmeacegmen
	Grhiteap	(489 .5)6	(7.93)	763.11	(35.80)	17.576
	Power	13.13	(0.69)	(2.21)	13.55	4,127.6
	Ohetrs	-	-		-	()
	Total	(476.52)	(8.62)	-760.90	(22.24)	-4,599.95
	Add/Less:
	InInctetresome	7.28	7.42	2305	35.92	49.57
	Ga/inlefInv(Includingin(los)iFairValuaion)tmtststonsaoesengason	18.78	14.80	22.64	73.25	51.49
	OheUnllocbleIncf ett oraaomenexpenses	(23.55)	0.63	5.49	(21.13)	(6.13)
	Finatnce cos	(8.58)	(8.73)	(5.8)6	(351)6.	(17.97)
	TolPrfitBefoTataorex	(482.59)	5.50	806.22	29.29	4,677.08

C	SentAstsgmese
	Grhiteap	244.746	3318.32	3479.11	244.746	3479.11
	Power	147.43	111.24	143.13	147.43	143.13
	Unllocd/Ohetetaars	182186.	13269.9	1522.12	182186.	1522.12
	TolSeAstanttsgmese	4438.35	5068.85	5144.36	4438.35	5144.36
D	SeLiabilitiesntgme
	Grhiteap	11799 .	933.78	1120.62	799.11	1120.62
	Power	8.63	10.39	9.62	8.63	9.62
	Unllocd/Ohetetaars	118.89	118.87	220.44	118.89	220.44
	TolSeLiabilitiestantgme	926.63	1063.04	1350.67	926.63	1350.67

	STATEMENTOFASSETSANDLIABILITIES
	Paiculartrs	31-03-2020	iCtnrores31-03-2019
		Audited	Audited
A	IASSETS
(1)	Not atsn-currensse
	)PrPlandEqipertt antaopnmey,u	733.58	84.487
	)Cabital wk-in-porprogress	100.61	18.58
	)InvPrtmtertcesenopy	3.37	3.54
	d)RightAstotusese	7.39
	)Godwilleo
	f)OtheIntibletsrangasse	I0~30	0.35
	)Intiblededeloptsntgangasseunrveme
	h)BiologicalAshehabelantsotr ttssenarerp
	i)Finaial aetsncss
	(i)Invtmtsesen	1,228.22	833.49
	(ii)Trdeivabl esarece
	(iii)Loans	1427.	11.19
	()OtivheFinaialAstsrncse
	)jDefed t()t strreaxassene
	k)IncTaAs(Ne)tstomexse	143.93	39.95
	I)Othenttsr non-curreasse	144.65	17.27
	CuTolNoAstattsnrrense	2,379.47	1,708.85
(2)	ICut atsrrensse
	()Invtoiesaenr	1,005.14	1,308.39
	(b)Finaial aetsncss
	(i)Invtmtsesen	1536.	108.24
	(ii)Trdeivablesarece	399.41	1,186.88
	&(iii)CahCah eivalentsssqu	32 .80	29.16
	()()ivBakbalanhehaiiibotr tnces onave	404.48	528.16
	()Lovans	0.78	0.26
	(i)OtheFinaialAstsvrsncse	6.86	5.38
	()Othenttscr curreasse	12.897	28.666
	TolCuAstattsrrense	2,058.88	3,435.50

	TotalAstsse	4,438.35	5,144.36

B	&EQUITYLIABILITIES
	Eqityu
	()Eqihailtytaausreca	38.60	38.60
	p(b)Oheittyr eu	473.12	755.09
	q	3,	3,
	LIABILITIES
(1)	Noliabilitiesntn-curre
	()Finaialliabiliiestanc
	()iBoingrrows	-	-
	(ii)TrdePablesaya	-	-
	(iii)LeLiabilityase	1.14	0.41
	(iv)Ohefinaialliabiliies-SiDeitttytrncecurpos	-	-
	(b)Prisionovs	3.91	3.87
	()Defedliabiliies(Ne)taxttcrre	102.05	12136.
	O(d)heliabiliiestttr non-curren	3.01	2.40
	CuiaiityTotalNontLblnrre	110.12	132.81

(2)	Culiabilitiesntrre
	()Finaialliabiliiestanc
	(i)Boingrrosw	592.26	666.36
	()iiTrdePablesaya
	()OuAToldingduf micrised sll eisetatstatetenesoo enrprs anmanrprs	6.58	3.99
	(B)TolOudingduf cdihehaicrised slltatstatotttenesorersornmo enrprs anma	12237.	30876.
	teiseenrprs
	(iii)LeLiabilityase	0.50	0.01
	()Oivhefinaialliabiliiesttrnc	5.226	130.16
	(b)Oheliabiliiestttr curren	12.55	1056.
	()Prisioncovs	36.6	19.78
	()Cu()dTaLiabiliiesNetttrrenx	5.46	5.43
	TolCuLiabilitytantrre	816.51	1,217.87

	TolEqitydLiabilitiestaanu	4,438.35	5,144.36

STATEMENT OF CASH FLOWSTATEMENT		finCrores
PARTICULARS	YeEndedar	YeEndedar
	31March2020st,	31M arch2019st,
CASHFLOWFROMOPERATING ACTIVITIES
fitforProbee Tax	29.29	4,677.08
Adjust fotinndh tctitmenr nonoperag anon casransaons
DeciationdAmortisatiopren an	72.13	72.39
IntPaidstere	36.51	17.97
t(fit)/Lo/ dNeProlannduipldiscardedrtyt antssonpropepeqmeso	0.88	3.35
d CAlls fExredit Lcteowanceorpeosses	(3.26)	5.35
Unlized (Gain)/Loduffeofhachd liabilitie tctatetsreasso eexcnge ranges on asseanes	(25.88)	(25.47)

Bad Debts	0.79	0.22
Gainle/faialuatiofinstmtsonsar vonveen	.25(73)	51(.49)
Dividenddearne	(1.25)	-
Inteivedstererec	(35.92)	(49.75)
Adjustmtsforchs itsd liabilitiesenangen assean
(lnc)/Din Tradeivablesreaseecreasee rec	818.20	(194.24)
(lnc)/DinInviestorreaseecreaseen	303.25	(796.95)
(lnc)/DinLoafincial andOthetsreaseecreasens,anr asse	192.03	(689.37)
se/lnc(Dee)inLiabilitiendvisionreacreass apros	(345.98)	145.79
Cashedfrotioratgenemoperans	967.54	3,114.88
Incide tomaxpa	103.76	1,6256.6
t Cfrtinctivities(A)Neh gtedaseneraomoperag a	863.78	1,488.23
CASHSTACESFLOWFROMINVEINGTIVITI
AdditioninPlanndEquip(includingCaitalork-ins)ertt antsropy pmepw-progres	(111.24)	(48.79)
SaoflePrortyPlt andEqipmtspeanuen	1.25	1.07
(se)/Dfor Clncin Advital Editreaecreaseancesapxpenure	(125.60)	(11.40)
se/()CrforCalncDeineditoital Enditureacreaserspxpere	15.74	3.70
PurchofInstmtsaseveen	(1,092 .01)	(6.29)66
Sale of Instmtsveen	876.39	-
Dividendived	1.25	-
receInteived	33.72	45.94
stererecNet Cashedininvingtivities (B)estusac	(0.51)40	(675.78)

CASHFLOWFROMFINANCINGACTIVITIES	(74.04)	368.91
Reofrkiital bings (t basis)ntpaymewongcaporrowonne	36.51	(17.97)
()IntstPaidincludinginterestleliabilityereonase	()0.1
Paf leliabilityt oymenase	(0)	-
DividendPaid	(289.47)	(319.67)
Dividenddiibution Tidstraxpa	(59.50)	(65.71)
BubackofEquityShe Citalya rap	-	(754.03)
(C)Net Ch usedinfincinivitieactasangs	(459.62)	(788.47)
NET INCREASE(DECREASE)INCASHANDCASHEQUIVALENTS (A+B+C)	3.64	23.99
Cashd cashuivalethe binningoftheriodntsataneqege p	29.16	5.17
5Cashd cashuivalethndoftheriodntsataneqe epe	32.80	29.16

Notes:

1 The above Consolidated financial results have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 as prescribed under section 133 of the Companies Act, 2013 read with relevant rules issued there under.
2 Financial results have been reviewed by Audit Committee and approved by Board of Directors in their respective meetings held on 17th June, 2020 and have been audited by the Statutory Auditors of the Company. The Statutory Auditors have expressed an unmodified opinion on the aforesaid results.
3 Effective April 1, 2019, the Company adopted Ind AS 116 "Leases" applied to all lease contracts existing on April 1, 2019 using the modified retrospective method along with the transition option to recognise Right-of-Use asset (ROU) at an amount equal to the lease liability. On transition the leases that were classified as finance leases, applying Ind AS 17, an amount of Rs. 6.34 crore has been reclassified from Property, Plant and Equipment to Right of use assets. An amount of Rs. 0.01 crore has been reclassified from other financial liability - current to lease liability - current and an amount of Rs. 0.41 crore has been reclassified from other financial liability - non current to lease liability - non current. Consequently there has been no adjustment to the opening balance of retained earnings. The lease term in respect of all Operating leases ends within 12 months of the date of initial application and accordingly the company has elected to account for such

leases as short term lease and has recognised the lease payments as rental expense.

The adoption of this standard does not have any significant impact on the profit and earning per share of the current period.

4 The company has elected to exercise the option permitted under section 115BAA of the Income tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019. Accordingly, the Company has re-measured its deferred tax liability as on 31 March 2019 on the basis of rate prescribed in the said section during the current year.
5 The Company, in accordance with the applicable Ind AS, has recognized its carrying inventory on Net Realizable Value (NRV) basis to the extent applicable and has accordingly written down the cost of inventory by Rs.427 crores [included in cost of raw material consumption (RM) Rs. 321 crores and in changes in inventories of finished goods and work-in-progress (FG & WIP) Rs. 106 crores in the quarter ended March 31, 2020, Rs.16 crores (included in Raw Material Rs. 5 crores and in changes in inventories of Finished Goods and WIP Rs.11 crores) in the quarter ended December 31, 2019 and Rs. 459 crores (included in Raw Material Rs. 326 crores and in changes in inventories of Finished Goods and WIP Rs. 133 crores) in the Financial Year ended March 31, 2020.
6 Up to the period of nine months ended December 31 ,2019, the company had made a provision of Rs 19.21 crore for the profit related incentives and commission payable to the employees including CMD of the company which was grouped under the head in Employee benefit Expenses. Due to sharp fall in the profits during the quarter ended March 31, 2020, the said provision needed to be reversed resulting into the negative figure of employee benefit expenses of Rs. 3.75 crore for the quarter ended March 31, 2020.
7 The figures of quarter ended 31 March 2020 and 31 March 2019 are the balancing figures between the audited figures in respect of full financial year and the published figures of quarter ended 31 December 2019 and 31 December 2018 respectively, which were subject to limited review by the Statutory Auditors.

The Company has made detailed assessment of its liquidity position for the next year and the recoverability and carrying value of its assets comprising property, plant and equipment, intangible assets, right of use assets, investments, inventory and trade receivables and other financial assets. Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of COVID-19 on the Company's financial results may differ from that estimated as at the date of approval of these consolidated financial results. The Company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

9 I Operations at our Hydro Power Plant at Tawa are seasonal in nature. The plant generally remains closed in the 1st quarter, starts operating in the 2nd quarter, peaks in the 3rd quarter before tapering down in the last quarter.
10 !The figures of the previous period have been regrouped/ rearranged wherever considered necessary to make them comparable with current period classification.
11 !The Board has not recommended any final dividend. The interim dividend of Rs.25/- per equity share already paid shall be treated as the final dividend for the financial year 2019-20. Thus, the total dividend for the financial year 2019-20 remains Rs.25/- per equity share.
12 !The notes disclosed in the consolidated financial Statements of Bhilwara Energy Limited, one of the associate companies, referred in the Auditor's report under 'Emphasis of matter' paragraph are being reproduced hereunder:
(a) I in case of Subsidiary ChangoYangthang Hydro Power Limited, due to various socio-legal issues and non-availability of the clearances from the appropriate authorities, the Board of Directors decided to surrender the project. Accordingly, the company submitted its letter dated 11th July 2017 to Directorate of Energy, Govt. of Himachal Pradesh for surrender of the project and refund of the entire upfront premium and security deposit paid on the project. Directorate of Energy vide letter dated 03rd May 2018 had advised the company to make a presentation on 08th Jun 2018 with complete status followed by the meeting dated 12th Jun 2018. In the said meeting, it was decided that current situation at project site and concerned villages shall be assessed jointly by team of officers from DoE, Sr. Project Authority and District Administration to ascertain the ground realities with regard to the opposition of the local people towards implementation of Chango Yangthang HEP and to gather their views in this regard.

GoHP vide Notification dated 03rd Nov, 2018 has formed a committee to deal with the issues of various projects which includes Chango Yangthang Hydro Power Limited (CYHPL). On the direction of GoHP, a public meeting was conveyed on 14th November 2018 which was attended by various villagers of the project affected area, officials of DoE, District administration and CYHPL. During the meeting, the villagers categorically refused for development of any Hydro Electric project in the Hangrang valley including 180 MW Chango Yangthang HEP and refused to co-operate on the issue of development of any project. The said committee discussed the Sutlej Valley projects on 18th Feb 2019 which included CYHPL. During the meeting CYHPL categorically refused to execute the project in view of severe local issue and lapse of clearances for the project. Committee has noted the same. In view of this, CYHPL has reiterated its demand for refund of money along with interest. The management in confident of recovering fully the upfront premium and security deposit.

(bl lln case of Subsidiary NJC Hydro Power Limited, environmental clearance (EC) of Nyamjang Chhu HEP (GX130 MW) was challenged in National Green Tribunal (NGT) by NGO. NGT in their order dated 7th April, 2016 suspended the Environment Clearance granted to the project till the directions as given in the order are complied. NGT also directed MOEF&CC to make a separate study of E-Flow requirement for protection of Habitat of the Black Neck Crane and for the conservation of the Black Neck Crane through the Wildlife Institute of India (WII). While the studies were in progress, Government of Arunachal Pradesh issued instant notice for termination on 22nd March, 2019 invoking its right to take over the project on "AS IS WHERE IS BASIS" and allotting the same to third party. The Company filed petition challenging instant notice for termination under section 9 of Arbitration Act in District Courts of Itanagar for immediate relief to maintain the status quo which was granted vide their order dated 30th April, 2019 and the termination notice was also suspended. WII subrnitted its report to GoAP and the same was submitted to court on pursuance of the company. In the report, WII has recommended no construction of Nyamjnag Chhu HEP at site. The project being not viable as per WII report, an application u/s 9 was filed seeking refund of upfront premium as per provisions of MoA. District Court vides their order dated 18th March, 2020 disposed of the petition and advised to invoke arbitration within 45 days. Due to Covid 19 pandemic lockdown the company approached District Court for extension of the interim protection by another 90 days which was turned down by them. The company filed an appeal with Gauhati High Court u/s 37 of the Arbitration Act challenging the earlier orders of District Courts. An appeal was admitted by The Hon'ble High Court but interim extension was not granted. Interim order of the Gauhati High court in this regard was challenged in Supreme Court by filing Special Leave petition. Hon'ble Supreme Court vide its order dated 08th May, 2020 granted the relief for extension with notice to the other party.
(c) I In case of Subsidiary BG Wind Power Limited, pending execution of the PPA expired on March 31, 2019, the Company has recognised revenue @3.14/- kwh based on the order issued by RERC vide its third amendment regulation dated 5th March 2019 for execution of the PPA to DISCOM for entire balance project life. GBI also taken at applicable rate @0.50/- kwh.
(d) !In case of Subsidiary Malana Power Company Limited, on April 27, 2019, the Company has received provisional net demand of "8,069.00 Lakhs in relation to wheeling charges for the period April 1, 2008 to March 31, 2019 from Himachal Pradesh State Electricity Board Limited (HPSEBL) based on an order passed by the Himachal Pradesh Electricity Regulatory Commission (HPERC), which is not in accordance with the agreement entered between the Company and HPSEB (now HPSEBL) in August 1999. In this regard, the Company has paid under protest an amount of "2,817.00 Lakhs. Based on the legal opinion obtained, the Company is of the view that demand is not legally tenable and would not result in any material liability for the period on or before March 2019 on the Company and accordingly has filed an appeal before Appellate tribunal, Electricity at New Delhi.

(e) jln case of Subsidiary AD Hydro Power Limited, on October 17, 2019, the Central Electricity Regulatory Commission (CERC) passed an Order on the Dedicated Transmission System of AD Hydro Power Limited (subsidiary company) in which CERC approved the capital cost of Dedicated Transmission System to ~23,892.00 Lakhs as against the capital cost submitted by the Company amounting to ~41,661.00 Lakhs (on the date of COD)/ ~45,284.00 Lakhs (with additional capitalization) and accordingly determined the annual fixed cost (Transmission Tariff) for using transmission line for the period 2011-12 to 2018-19. The management is of the view that the methods used to derive the capital cost by the CERC are not in accordance with the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations ("regulations") for the period 2009-14 and 2014-19 and Electricity Act, 2003. Further, the Company has filed an appeal against the said order before Appellate Tribunal for Electricity (APTEL) and pursuant to an appeal filed, the APTEL has passed an interim order dated January 17, 2020 and stayed the above said demand and directed not to issue any readjustment bills along w ith the direction to continue to issue the future bills in accordance with the CERC Order till the appeal is finally disposed-off. The Company has accordingly started raising the invoices based on the CERC order effective 18th October, 2019 and recognized as transmission income. Pending litigation and final decision on the appeal, the Management, based on the legal opinion, is of the view that the Order is not legally tenable and would not have any material liability on the subsidiary company and accordingly trade receivable (including unbilled revenue) aggregating to ~3,319.88 Lakhs is good and fully recoverable and no provision is required in respect of possible exposure aggregating to ~6,121.81 Lakhs towards amount already collected from the users of Dedicated Transmission Line till March 31, 2020. Further, the management is confident that there would be no significant impact on the financial position of the subsidiary company in respect of transmission losses which is to be determined by the NRLDC as directed in the CERC Order. Further, CERC has directed to share the losses on the basis of weekly average losses in proportion to the scheduled energy on weekly basis instead of a flat charge of 4.75% and accordingly directed the NRLDC to compute the same. However, the management is confident that there would be no significant impact on the financial position of the subsidiary company in respect of transmission losses as the actual losses during the peak season are likely to be higher. For HEG Limited

Place : Noida(U.P) Dated : 17th June, 2020 RA VI Digitally signed by JHUNJHUNWAL RAVI JHU NJHUNWALA Date: 2020.06.17 A 1 ?: 1 s:23 +os•30• Ravi Jhunjhunwala Chairman, Managing Director & CEO DIN No.00060972

B-NIX-220, Rant Jhansi Road, Ghumar Mandi, Ludhiana-141 001 F: [email protected] $+91 - 161 - 2774527$ T. $M$ : $+91-98154-20555$

CHARTERFD ACCOUNTANTS

Independent Auditor's Report on the Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To The Board of Directors of HEG Limited

Report on the audit of the Standalone Financial Results

Opinion

We have audited the accompanying statement of quarterly and year to date standalone financial results of HEG Limited ("the Company") for the quarter ended March 31, 2020 and for the year ended March 31. 2020 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us, the Statement:

i. is presented in accordance with the requirements of the Listing Regulations in this regard: and
ii. gives a true and fair view in conformity with the applicable accounting standards and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information of the Company for the quarter and year ended March 31. 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Standalone Financial Results" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion

Management's Responsibilities for the Standalone Financial Results

The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profit and other comprehensive loss of the Company and other financial information in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Statement, the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors's use of the going concern basis of ۰ accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to

Continuation Sheet No.

draw attention in Our auditor's report to the related disclosures in the financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Statement, including the $\bullet$ disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Statement that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Statement may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Statement.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

(i) Due to the COVID-19 related lockdown, we were unable to observe the management's year-end physical verification of inventory. We have performed alternate procedures to audit the existence of inventory as per the guidance provided in SA 501 "Audit Evidence- Specific considerations for selected items", which includes inspection of supporting documentation relating to purchases, production, sales, results of cyclical count performed by the management through the year, and have obtained sufficient appropriate audit evidence to issue our unmodified opinion on these standalone financial results.
(ii) The Statement includes the results for the quarter ended March 31, 2020 being the balancing figure between the audited figures in respect of the full financial year ended March 31, 2020 and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subjected to limited review by us, as required under the Listing Regulations.

Our opinion on the Statement is not modified in respect of the above matters.

For SCV & Co. LLP Chartered Accountants FRN 00235N/N500089

$c_0$

ered o

(Sanjiy Mohan) Partner M. No. 086066

Dated: 17 June 2020 Place: Ludhiana

CHARTERED ACCOUNTANTS

B-XIX-220, Rani Jhansi Road, Ghumar Mandi, Ludhiana-141 001 E [email protected] $= 91 - 161 - 2774527$ $M$ +91-98154-20555

Independent Auditor's Report on the Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

T0 The Board of Directors of HEG Limited

Report on the audit of the Consolidated Financial Results

Opinion

We have audited the accompanying statement of consolidated financial results of HEG Limited ('the Company') and its associates for the quarter ended March 31, 2020 and year ended March 31, 2020 ("Statement"), attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("Listing Regulations").

In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate audited financial statements/financial results/financial information of the associates, the Statement:

i. includes the results of the following entities;

	S.No Name of Associates	Relationship
	Bhilwara Energy Limited	Associate
$\overline{a}$	Bhilwara Infotechnology Limited	Associate

ii. are presented in accordance with the requirements of the Listing Regulations in this regard: and
iii. gives a true and fair view in conformity with the applicable accounting standards, and other accounting principles generally accepted in India, of the total comprehensive income and other financial information of the Company for the quarter ended March 31, 2020 and year ended March 31, 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Companies Act, 2013, as amended ("the Act'). Our responsibilities under those Standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Results" section of our report. We are independent of the company and its associates in accordance with the "Code of Ethics' issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in "Other Matter" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

SCV & Co. (formerly known as S. C. Vasudeva & C.).) a partnership firm converted to SCV & Co. LLP a limited liability Partnership with LLP Identification No. AAM-5505, w.e.f. 3rd May, 2018 ICAL Registration Number is non- ISN/N500089

Regd. Office : B 41. Lawer Ground Floor Panchsheet Enclave, New Delhi 110017 $T = +91.1126499111$ www.sevindia.com $\mathbf{w}$

Continuation Sheet No

Matters reported in the Auditor's Report on Consolidated financial Statements of Bhilwara Energy Limited, an associate of the Company

(A) Material uncertainty related to going concern of a subsidiary of an associate

We draw attention to the matter related to material uncertainty related to going concern of a subsidiary of Bhilwara Energy Limited, an associate of the Company, reported in the Auditor's Report on Consolidated financial statement of the associate which is being reproduced hereunder:

In case of Chango Yangthang Hydro Power Limited, a subsidiary of the associate

In "Chango Yangthang Hydro Power Limited" the Board of directors decision to surrender the Chango Yangthang HEP (180 MW) project to Directorate of Energy, Government of Himachal Pradesh due to delay and uncertainty in project execution and long delay in Government approvals and licenses lapse, the company has written off Capital Work in progress during the previous year amounting to INR 2,713.18 lakhs. These events or conditions, indicate that there exists material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern since the company was incorporated as a Special Purpose Vehicle for this particular project.

The opinion of the auditor of the said company is not modified in respect of this matter. Also the opinion of the auditor of the associate company is not modified in respect of this matter.

(B) Emphasis of Matter

We draw attention to the Emphasis of matters reported in the Auditor's Report on Consolidated financial Statements of Bhilwara Energy Limited, an associate of the Company, which are being reproduced hereunder:

(i) In case of Chango Yangthang Hydro Power Limited, a subsidiary of the associate

The company has surrendered Chango Yangthang HEP (180MW) project in Himachal Pradesh and asked for the refund of Upfront premium of INR 3789.45 lakhs and Security Deposit of INR 180 lakhs with interest since the project is not executable purely on account of various social-legal issues neither in the control of the company nor in the control of local administration/authorities.

GoHP has formed a committee to deal with the issues of various projects which includes ChangoYangthang Hydro Power Limited (CYHPL). On the direction of GoHP, a public meeting was conveyed, in which the villagers categorically refused for development of any Hydro Electric project in the Hangrang valley including 180 MW Chango Yangthang HEP and refused to co-operate on the issue of development of any project. During the meeting called for by the committee, CHYPI categorically refused to execute the project in view of severe local issue and lapse of clearances for the project. Committee has noted the same.

Continuation Sheet No.

In View of this, the company has reiterated its demand for refund of money along with the Interest and the management is confident of recovering the Upfront Fees and Security Deposit paid on account of surrender of project, in full. The upfront fee and security deposit as mentioned above have been grouped under Other Non-Current Assets and Non-Current Loans- Security Deposit respectively.

We also draw attention to note no. 12(a) of the financial results in this regard.

(ii) In NJC Hydro Power Limited, a subsidiary of the associate

There is uncertainty relating to the effects of outcome of petition filled by the company with Hon'ble Guwahati High Court and Hon'ble Supreme Court challenging the instant notice issued by Government of Arunachal Pradesh (GoAP) for termination of the Project and invoking its right to take over the project on "AS IS WHERE IS BASIS" and allotting the same to third party. The company's prayer is for seeking refund of upfront premium as per provisions of MoA, in view of the WII report recommending no construction of Nyamjnag Chhu HEP at site.

We also draw attention to note no. 12(b) of the financial results in this regard.

(iii) In BG Wind Power Limited, a subsidiary of the associate

In case of BG Wind Power Limited, the Power Purchase Agreement (PPA) with DISCOM has expired on March 31, 2019. BG Wind Power Limited, Subsidiary is pursuing for Power Purchase Agreement (PPA) with DISCOM @ INR 3.14 per Kwh as per RERC third amendment regulation dated 5th March 2019 for the entire duration of the project. The Discom has yet not renewed the PPA. The Company has continued to recognise Revenue from Sale of Power of INR 367.76 lakhs and Generation Based Incentive (GBI) of INR 59.12 lakhs and shown under Unbilled Revenue as the management of the company believes that PPA will be signed. The company has filed the writ petition with Rajasthan High Court, Jaipur in this regard and the matter is still undecided as hearing is continued.

We also draw attention to note no. $12(c)$ of the financial results in this regard.

(iv) In Malana Power Company Limited, a subsidiary of the associate

There is uncertainty relating to the effects of outcome of litigation with Himachal Pradesh State Electricity Board (HPSEBL).

We also draw attention to note no. $12(d)$ of the financial results in this regard.

(v) In AD Hydro Power Limited, a subsidiary of the associate

There is uncertainty relating to the effects of outcome of litigation with parties using the transmission line.

We also draw attention to note no. $12(e)$ of the financial results in this regard.

The opinion of the auditor of the associate company is not modified in respect of matters stated above.

Further, our opinion on the Statement is not modified in respect of these matters.

Continuation Sheet No.

Management's Responsibilities for the Consolidated Financial Results

The Statement has been prepared on the basis of the consolidated annual financial statements. The Company's Board of Directors are responsible for the preparation and presentation of the Statement that give a true and fair view of the net profit and other comprehensive income and other financial information of the company including its associates in accordance with the applicable accounting standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the company and its associates are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and its associates and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Statement by the Directors of the Company, as aforesaid.

In preparing the Statement, the respective Board of Directors of the company and its associates are responsible for assessing the ability of the company and its associates to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the company and its associates are also responsible for overseeing the financial reporting process of the company and its associates.

Auditor's Responsibilities for the Audit of the Consolidated Financial Results

Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Statement.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the company and

Continuation Sheet No.

its associates to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company and its associates to cease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial results/financial information of the company and its associates to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the Statement of which we are the independent auditors. For the other entities included in the Statement, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

Materiality is the magnitude of misstatements in the Statement that, individually or in aggregate. makes it probable that the economic decisions of a reasonably knowledgeable user of the Statement may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Statement.

We communicate with those charged with governance of the Company and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

We also performed procedures in accordance with the Circular No. CIR/CFD/CMD 1/44/2019 dated March 29, 2019 issued by the Securities Exchange Board of India under Regulation 33 (8) of the Listing Regulations, to the extent applicable.

Other Matter

(i) The accompanying Statement includes the audited financial results/statements and other financial information, in respect of two associates, whose financial results/statements include company's share of net profit (loss) of Rs. (10.96) crores and Rs. 14.26 crores and company's share of total comprehensive income of Rs. (11.04) crores and Rs. 14.15 crores for the quarter and for the year ended March 31, 2020 respectively, as considered in the Statement whose financial results/financial statements, other financial information have been audited by their respective independent auditors. The independent auditor's report on the financial statements/financial results/financial information of these entities have been furnished to us by the Management and our opinion on the Statement in so far as it relates to the amounts and disclosures included in respect of these associates is based solely on the reports of such auditors and the procedures performed by us as stated in paragraph above.

Continuation Sheet No.

(ii) Due to the COVID-19 related lockdown, we were unable to observe the management's year-end physical verification of inventory. We have performed alternate procedures to audit the existence of inventory as per the guidance provided in SA 501 "Audit Evidence- Specific considerations for selected items", which includes inspection of supporting documentation relating to purchases, production, sales, results of cyclical count performed by the management through the year, and have obtained sufficient appropriate audit evidence to issue our unmodified opinion on these financial results.
(iii) The Statement includes the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2020 and the published unaudited year-to-date figures up to the end of the third quarter of the current financial year, which were subjected to a limited review by us, as required under the Listing Regulations.
(iv) Attention is drawn to the fact that the consolidated figures for the corresponding quarter ended March 31, 2019, as reported in these financial results have been approved by the Company's Board of Directors. but have not been subjected to audit/review.

Our opinion on the Statement is not modified in respect of the above matters.

For SCV & Co. LLP Chartered Accountants Firm Reg. No: 000235N/N500089

Ċ tered o $\subset \Delta$ untants (Sanjiy Mohan) Partner M.No086066

Place: Ludhiana Date: 17th June 2020

HEG / SE CIT/ 2020

17th June,2020

1	BSE Limited	2	National Stock Exchange of India Limited
	P J Towers		Exchange Plaza, 5th Floor
	Dalal Street		Plot No.C/1, G Block, Bandra -Kurla Complex
	MUMBAI - 400 001.		Bandra (E),
	Scrip Code : 509631		MUMBAI - 400 051 .
			Scrip Code: HEG

Sub: Declaration pursuant to Regulation 33 (3) (d) of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Dear Sirs,

I, Gulshan Kumar Sakhuja, Chief Financial Officer of HEG Limited (CIN L23109MP1972PLC008290) having its Registered Office at Mandideep, Distt. Raisen, Madhya Pradesh - 462 046 and its Corporate Office at Bhilwara Towers, A-12, Sector -1, Naida - 201301, hereby declare that, the Statutory Auditor M/ s. SCV & Co. LLP., Chartered Accountants (Firm Registnrtion No.000235N / N500089) have issued an Audit Report (Standalone & consolidated) with unmodified opinion on Audited Financial Results of the Company for the financial year ended 31st March 2020.

This declaration is given in compliance to Regulation 33 (3) (d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time.

Kindly take the same on record.

Thanking you,

Yours faithfully, For HEG Limited


**(Gulshan Kumar Sakhuja) Chief Financial Officer**  he [email protected]

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## **HEG LIMITED**

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**Corporate Office** : Bhilwara Towers, A-12, Sector-1 Naida· 201 301 (NCR-Delhi), India Tel.: +91 -120-4390300 (EPABX) Fax: +91 -120-4277841 Website: www.lnjbhilwara.com Website: www.hegltd.com Corporate Identification No.: L23109MP1972PLC008290 28

**Regd. Office** : Mandideep (Near Bhopal) Dist!. Raisen - 462046 (Madhya Pradesh), India Tel.: +91-7480-405500, 233524 to 233527 Fax: +91 -7480-233522

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HEG Ltd. Audit Report / Information 2020

61624_rns_2020-06-17_64e19cb8-a731-47fd-ab28-7279e48369c7.pdf