HEG Ltd. — Interim / Quarterly Report 2018

Oct 31, 2018

HEGI SECTT12018 31st October, 2018

1	BSE Limited	2	National Stock Exchange of India Limited
	25th Floor, P JTowers		Exchange Plaza, 5th Floor
	Dalal Street		Plot No.C/l, G Block, Bandra -Kurla Complex
	MUMBAI -400 001.		Bandra (E),
			MUMBAI -400 051.
	L Scrip Code: 509631		Scrip Code: REG

Sub: Outcome of Board Meeting

Dear Sirs,

Pursuant to Regulation 30 & 33 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), the Board of Directors at its meeting held today i.e. 31st October, 2018 has approved and taken on record the tollowmg:

1. The Unaudited Financial Results of the Company for the quarter & half year ended the 30th September, 2018.

The Unaudited financial results of the Company for the quarter & half year ended the 30th September, 2018, alongwith the Limited Review Report of the Statutory Auditors thereon is enclosed as an Annexure-I.

2. Approval for payment of Interim Dividend for the financial year ending 31st March, 2019.

In continuation of our earlier letter dated 26th October, 2018 intimating about the consideration of inter-alia the payment of Interim Dividend, if any, to the Equity Shareholders of the Company for the financial year ending 31st March, 2019, at the Board Meeting scheduled to be held on 31st October, 2018 and Fixation of Record date, please note that the Board of Directors at its meeting held today approved the payment of Interim Dividend of Rs. 301 - per equity share of the face value of Rs.I01-.

The Record date fixed for Tuesday, 13th November, 2018 for the payment of the aforesaid Interim Dividend has been notedl confirmed by the Board of Directors at its meeting held today. The said Interim Dividend shall be paid I dispatched to the shareholders on or before 29th November, 2018.

3. Appointment of Smt. Vinita Singhania, as an Additional Director (Non-Executive).

HEG

Smt. Vinita Singhania (holding DIN:00042983) has been appointed as an Additional Director (Non-Executive) on the Board of the Company w.e.f. 31st October, 2018 under Section 161 of the Companies Act, 2013, to hold office upto the the next Annual General Meeting of the Company. i (;) l'l1/ , ~rr ........ {<' \0

LIMITED

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

Tel. Website Fax: Regd. Mandideep (Madhya : +91-7480-405500, +91-7480-233522 Office: : Pradesh), www.hegltd.com (Near Bh India op 233524 to 233527

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Contd.. 2/

Corporate Identification No .. L23109MP1972PLC008290

A brief Profile of Smt. Vinita Singhania is attached in Annexure-2.

Smt. Vinita Singhania is not debarred from holding the office of Director pvrsuant to any SEBI order or any other such authority

Smt. Vinita Singhania is not related to any of the Directors or Key Managerial Personnel or Promoters of the Company.

4. Appointment of Smt. Ramni Nirula, as an Independent Director (Additional Director).

Smt. Ramni Nirula (holding DIN:00015330) has been appointed as an Independent Women Director (Additional Director) on the Board of the Company w.e.f. 31st October, 2018, for a first term of consecutive 5 years subject to the approval of the shareholders at the next Annual General Meeting of the Company.

A brief Profile of Smt. Ramni Nirula is attached in Annexure-3.

Smt. Ramni Nirula is not debarred from holding the office of Director pursuant to any SEB! order or any other such authority

Smt. Ramni Nirula is not related to any of the Directors or Key Managerial Personnel or Promoters of the Company.

1. Shri Manish Gulati, designated as Key Managerial Personnel of the Company.

Shri Manish Gulati, Chief Marketing Officer of the Company has been designated as Key Managerial Personnel of the Company w.e.£. 31st October, 2018.

A brief Profile of Shri Manish Gulati is attached in Annexure-4.

Shri. Manish Gulati is not related to any of the Directors or Key Managerial Personnel or Promoters of the Company.

Contd.. 3/

HEG LIMITED

Corporate Office: Regd. Office : 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

Bhilwara Towers, A-12, Sector-'J Mandideep (Near Bhopal) Distt. Raisen 462046 Tel.: +91-120-4390300 (EPABX) Tel. : +91-7480-405500, 233524 to 233527

Corporate Identification No.: L23109MP1972PLC008290

1. The Board has approved the constitution of its Risk Management Committee w.e.£. 31st October, 2018. The Composition of Risk Management Committee is as under:

S.No	Name	Designation
1	Shri Ravi Jhunjhunwala	Chairperson
2	Shri Dharmendar Nath Davar	Member
3	Dr. Kamal Gupta	Member
4.	Smt. Ramni Nirula	Member

The meeting of Board of Directors commenced at 1.15 P.M and concluded at 3.35 P.M.

Kindly take the same on record.

Thanking you,

heg.investor@lnjbhilwara.com

Encl:

• (a) Annexure-1- Unaudited financial results of the Company for the quarter & half year ended the 30th September, 2018, alongwith the Limited Review Report
• (b) Annexure-2- Brief Profile of Smt. Vinita Singhania, Additional Director (Non-Executive)
• (c) Annexure-3- Brief Profile of Smt. Ramni Nirula, Independent Director (Additional)
• (d) Annexure-4- Brief Profile of Shri Manish Gulati

HEG LIMITED

Corporate Office: Regd. Office : 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

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

Corporate Identification No ,',L23109MP1972PLC008290

B-XIX-220, Rani Jhansi Road, Ghumar Mandi, Ludhiana-141 001 E : ludhiana@scvindia.com T : +91-161-2774527 M : +91-98154-20555

II'JDEPENDENT AUDITOR'S REVIEW REPORT ON HALF YEARLY FINANCIAL RESULTS

To The Board of Directors, HEG Limited

Introduction

We have reviewed the accompanying statement of unaudited financial results of HEG Limited (the Company) 30th for the quarter and six months period ended Sept, 2018 (the Statement) being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This Statement, which is the responsibility of the company's management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 "Interim Financial Reporting" prescribed under section 133 of the Companies act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a report on the statement based on our review.

Scope of Review

We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical proce,dures applied to financial data and thus provide less assurance than an audit. We have not performed an audit and accordingly we do not express an audit opinion.

Conclusion

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable Indian accounting standards (Ind AS) and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI ·(Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

Dated: 31st October, 2018

For SCV & Co. LLP Chartered Accountants FRN 000235N/N500089

~ v,--> (~a{vasu artner Place: Noida . No. 090989

~		HEG LIMITED
	Corporate Office : Bhilwara Towers, A-12, Sector -1, NOIDA - 201301.
	Registered Office: Mandideep (Near Bhopal ), Distt. Raisen, Madhya Pradesh-462046.
		Phone: 0120-4390300; Fax: 0120-4277841
	CIN: L23109MP1972PLC008290 Website: www.hegltd.com Email: heg.investor@lnjbhilwara.com
	STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2018
							~ in Crores
			Quarter Ended		Half Year Ended		Financial YearEnded
51. No.	Particulars	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
		30·09·2018	30·06·2018	30-09·2017	30·09·2018	30-09-2017	31-03-2018
I	Revenue from Operat ion(Refer Note 3)	1793.80	1587.38	409.54	3381.18	623.24	2758.40
II	Other Income	20.37	9.36	2.55	29.72	3.28	12. 37
III	Total Revenue (1+11)	1814.17	1596.74	412.09	3410.90	626.52	2770.77
IV	ExpensesCost of mate ri als consumedPurch ase of sto ck -in-trade	414.16	277.02	118.36	691.18	231.69	575 .81
	Cha nges in inventories of finished goods, wo rk-in- progress and sto ck-in-t rade	(196.32)	(71.38)	3.79	(267. 71)	(14.20)	(97.82)
	Empl oyee benefi ts expense	52.55	45.45	16.98	98.00	30.81	112.5 6
	Finance co st	5.39	3.15	12.94	8.54	26.10	56.68
	Depreciati on and amortisation expe nse	18.13	17.56	18.20	35.68	35.98	72.55
	Power and Fuel (Net of Interdivi sional Purchases)Excise Duty (Refer Note 3)	45.380.00	41.500.00	27. 370.00	86.880.00	48.738.35	164.368.35
	Other Expenses	109.22	106.82	53.31	216.05	104.76	273. 57
	Total expenses (IV)	448.51	420.12	250.95	868.62	472.22	1166.06
V	Profit/(Loss) before exceptional items and tax (III-IV)	1365.66	1176.62	161.14	2542.28	154.30	1604.71
VI	Exceptional Ite ms
VII	Profit/(Loss) before Tax (V-VI)	1365.66	1176.62	161.14	2542.28	154.30	1604.71
	VIII Ta x expense					44.01	513.56
	(1) Current Tax	475.38	406.21	44.003.48	881.591.49	5.07	9. 81
	(2) Deferred Tax	1.38888.90	0. 11770.30	113.66	1659.20	105.22	1081.34
IX	Net Profit/(Loss) for the period (VII-VIII)Other Comprehensive Income (Net of Taxes)
X				(0.31)	(1.17)	(0.31 )	(0.36)
	A (i) Items that will not be reclassified to profit or loss	(1.17)	0.00
	(ii) Income tax relating to items that will not be reclassified to profit or loss	0.41	0.00	0.11	0.41	0.11	0.12
	B (i) Items that will be reclassified to profit or loss
	(ii) Income tax relating to items that will be reclassified to profit or loss
XI	Total Comprehensive Income for the period	888.14	770.30	113.46	1658.44	105.02	1081.10
4	Paid -Up Equity Share Capital ( Face Value ~ 10/- per share)	39.96	39.96	39.96	39 .96	39.96	39 .96
	~ cY(!j~ ~eserves (Excluding Revaluation Reserves)						1768.66
XIV <	ningS Per Share () - Basic	22 2.45	192. 77	28.44	415.22	26.3 3	270.61
Ch rtered "0	(Not annualized) - Diluted	22 2.45	192 .77	28.44	415.22	26.33	270.61

ccountants}) * ~ *

		SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES
							~ in Crores
			Quarter Ended			Half Year Ended	Financial YearEnded
SI. No.	Particu lars	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
		30-09-2018	30-06-2018	30-09-2017	30-09-2018	30-09-2017	31-03-2018
A	Segment Revenue
	Graphite	1793.38	1586.84	407.01	3380.23	619.44	2738.83
	Power	28.85	27.88	54.56	56.72	108.78	213.80
	Others	0.00	0.00	0.00	0.00	0.00	0.01
	Total	1822.23	1614.72	461.57	3436.95	728.22	2952.64
	Less: Inter segment sales	28.43	27.34	52.03	55.77	104.98	194.24
	Net Sales / Income from Operations	1793.80	1587.38	409.54	3381.18	623.24	2758.40
B	Segment Results
	Profit before tax and interest from each segment
	Graphite	1369.61	1180.53	157.42	2550.14	145.93	1613.03
	Power	(7.63)	(4.77)	16.46	(12.40)	34.26	48.59
	Total	1361.98	1175.76	173.88	2537.74	180.19	1661.62
	Add/Less:
	Unallocable Income/(Expense)	9.07	4.01	0.20	13.08	0.21	(0.23)
	Finance cost	(5.39)	(3.15)	(12.94)	(8.54)	(26.10)	(56.68)
	Total Profit Before Tax	1,365.66	1,176.62	161.14	2,542.28	154.30	1,604.71
C	Segment Assets
	Graphite	3217.19	2769.37	1595.08	3217.19	1595.08	2311.30
	Power	163.07	154.67	167.64	163.07	167.64	166.06
	Unallocable / OthersTotal Segment Assets	1131.804512.06	880.563804.60	158.711921.43	1131.804512.06	158.711921.43	158.212635.57
D	Segment Liabilities
	Graphite	1178.70	1123.45	685.34	1178.70	685.34	737.57
	Power	41.02	34.36	36.48	41.02	36.48	33.71
	Unallocable / Others	66.15	67.87	5.73	66.15	5.73	55.67
	Total Segment Liabilities	1285.87	1225.68	727.55	1285.87	727.55	826.95

f-­Particulars		tin CroresStandalone
	30-09-2018	31-03-2018
	Unaudited	Audited
AASSETS
(1)Non-current assets
a) Property, Plant and Equipment	816.49	829.30
b) Capital work-in -progress	3.45	1.61
c) Investment Property	3.63	3.72
d) Goodwill
e) Other Intangible assets	0.31	0.35
f) Intangible assets unde r development
g) Biological Assets other than beare r plants
h) Fi nancial assets
(i) Investments	510.94	149.26
(ii) Trade rece ivables
(iii) Loans	7.51	7.38
(iv) Others Finan cial Assets
i) Deferred tax assets(net)
j) Other non-cu rrent assets	29.93	29.03
(2) Current assets
(a) Inventories	956.46	511.44
(b) Fina ncia l asse ts
(i) Investments	150.99
(ii) Trade receivables	1,340.88	972.69
(iii) Cash & Cash equivalents(Refer Note 4)	201.96	5.17
(iv) Bank balances other than (iii) above	313.86	2.45
(v) Loans	2.35	0.91
(vi) Others Financial Assets	3.87	1.09
(c ) Current Tax Assets(Net)
(d) Other current assets	169.43	121.17
Total Assets	4,512.06	2,635.57
EQUITY & LIABILITIESB
Equity
(a) Equity share capita l	39.96	39.96
(b) Other equity	3,186.23	1,768.66
LIABILITIES
(1) Non-current liabilities
(a) Financial liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other financial liabilities-Security Deposit	0.40	0.43
(b) Provisions	3.77	3.41
(c) Deferred tax liabi lities (Net)	120.25	119.17
(d) Other non-curre nt liabil ities	2.08	2.08
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings	341.92	297.45
(ii) Trade Payables
(A) Total Outstanding dues of micro enterprises and small enterprises	2.30	2.46
(B) Total Outstanding dues of creditors other than micro enterprises and small enterprises	474.07	243.98
(ili) Other financial liabilities	150.16	79.14
(b) Other current liabilities	77.85	47.34
(c) Provisions	0.68	0.69
(d) Current Tax Liabilities (Net)	112.39	30.80
Total Equity and liabilities	4,512.06	2,635.57

	Notes:
1	The figures of the corresponding previous period / year have been regrouped / recast / reclassified wherever considered necessary to correspond to current period / year classification.
2	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 quarterbefore tapering down in the last quarter. However, due to insufficient rains this year the plant started operating only on 22nd October, 2018.
3	I Consequent to the introduction of GST w.e.f. 1st July 2017, revenue is required to be shown net of GST. Revenue for the period prior to 1st July 2017 was shown inclusive of excise duty.Accordingly, the revenue for the half year ended 30th September 2018 is not comparable with the corresponding half year of the previous period presented.
4	Cash & cash equivalents as on 30th September,2018 includes fixed deposits and corporate deposits with banks amounting to Rs.156.25 Crores(Previous year NIL) having maturity period ofless than 3 months.
5	The Board has approved the payment of Interim Dividend of Rs. 30 per Equity Share of face value of Rs. 10 each to the Equity Shareholders of the Company.
6	The above Unaudited financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 31st October,2018, and havealso been reviewed by the statutory auditors of the company as per the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.
	Place: Noida(U.P)
	Dated: 31st October,2018

Annexure-2

Brief Profile of Smt. Vinita Singhania, Additional Director (Non-Executive) is as under:

Smt. Vinitia Singhania is an Industrialist with diversified business experience. She is the Vice Chairman and Managing Director of JK Lakshmi cement Ltd and has a very long experience of managing cement business in particular. She was the First Woman President of Cement Manufacturers' Association (CMA) as well as National Council for Cement and Building Materials (NCBM). She is a Director on the Board of various Listed Companies.

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

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

Corporate Identification No.: L23109MP1972PLC008290

Annexure-3

Brief Profile of Smt. Ramni Nirula, Independent Director (Additional) is as under:

Smt. Ramni Nirula is presently on the Indian advisory Board of a Boston based Global PE fund set up for advising on investment opportunities in India and supporting investee Companies in their biz growth.

Smt. Nirula holds a Bachelor's degree in Economics and a Master's Degree in Business Administration from Delhi University.

Smt. Ramni Nirula, retired as Senior General Manager of ICICI Bank Limited. She has more than 4 decades of experience in the financial services sector, beginning her career w.ith the erstwhile ICICI Limited in the project appraisal division. Since then she has held various leadership positions in the areas of Project Financing, Strategy, Planning & Resources and Corporate Banking.

Smt. Nirula was part of the Top Management team instrumental in transforming ICICI Bank from a term lending institution into a technology led diversified financial services group with a strong presence in India's retail financial services market. She was also part of the top-level task force, which successfully planned and implemented ICICI Bank's entry in the Rural Banking, Microfinance & Agriculture Business group, identified by the Bank as a key thrust area.

Smt. Nirula also held key position as Managing Director & CEO of ICICI Securities Limited, the Investment Banking arm of ICICI Bank Limited. Smt. Nirula also headed the Corporate Banking Group for ICICI Bank, Corporate Banking Business is the largest business stream of ICICI Bank covering Multi-national Corporates in India, large Indian corporates and Public Sector undertakings. This Business group offers entire gamut of financial products to suit growing needs of the Corporate sector.

HEG LIMITED

Corporate Office : Regd. Office: 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

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

Annexure-4

Brief Profile of Shri Manish Gulati is as under:

Shri Manish Gulati, aged 49 years is a BSc (Statistics) Agra Univ, BE Electronics, Pune Univ and MBA (Marketing and Finance), FMS Delhi having professional experience of ~ore than 26 years in marketing and sales. He has been associated with HEG Limited since May'1993 and and has a varied and rich experience in marketing having developed several markets for HEG's exports as the company expanded its presence in global markets.

Currently he is designated as Chief Marketing Officer and his responsibilities include marketing and sales in India and overseas markets, shipping and international logistics, International procurement etc.

With his extensive experience, he adds value and perspective in all key management decisions.

He reports to Chairman, Managing Director and CEO of the Company.

HEG LIMITED

Corporate Office: Regd. Office:

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

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

Corporate Identification No.: L23109MP1972PLC008290