HEG Ltd. — Interim / Quarterly Report 2020

Aug 10, 2020

HEG / SE CTI/ 2020 10th August, 2020

1	BSE Limited	2	National Stock Exchange of India Limited
	25th Floor, 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

Dear Sirs,

Pursuant to Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors at its meeting held today i.e. 10th August, 2020 has approved and taken on record the Unaudited financial results (Standalone and Consolidated) of the Company for the quarter ended the 30th June, 2020, alongwith the Limited Review Reports of the Statutory Auditors thereon, which are enclosed as an Annexure to this letter.

Impact of COVID -19 on the results for the quarter ended 30th June, 2020 as under:-

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 nationwide 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 and resumed the operations from 23rd April 2020. Since the lockdown was in force for a significant period of the quarter, the company's operations and financial results for the quarter ended 30 June 2020 have been adversely impacted. The results for the quarter are, therefore, not comparable with those for the previous quarters.

Contd .. 2/ -

HEG LIMITED

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

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

Corporate Identification No.: L23109MP1972PLC008290

: 2:

The company has made detailed assessment of its liquidity position and the recoverability and carrying value of its assets comprising property, plant and equipment, intangible assets, right of use assets, investments, inventory and h·ade receivables. Based on current indicators of future economic conditions, the company expects to recover the carrying amount of these assets. The situation is changing rapidly giving rise to inherent uncertainty around the extent and timing of the potential future impact of the COVID-19 which may be different from that estimated as at the date of approval of these financial results. The company will continue to closely monitor any material changes arising of future economic conditions and impact on its business.

The above said Board Meeting commenced at 12:00 Noon and concluded at 6.05 P.M.

Please take the same on record

Thanking you,

Encl. as above

HEG LIMITED

Corporate Office : Bhilwara Towers, A-12, Sector-1 Noida • 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 • 462046 (Madhya Pradesh), India Tel.: +91-7480-405500, 233524 to 233527 Fax: +91-7480-233522

Corporate Identification No.: L23109MP1972PLC008290

B-XIX-220, Rani Jhansi Road, Ghumar Mandi, Ludhiana-141 00 1 E : ludhiana@scvindia.com T : +91-161-2774527 M : +91-98154-20555

INDEPENDENT AUDITOR'S REVIEW REPORT ON THE QUARTERLY UNAUDITED STANDALONE FINANCIAL RESULTS OF HEG LIMITED PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015, AS AMENDED

Review Report to The Board of Directors HEG Limited

• I. We have reviewed the accompanying statement of unaudited Standalone financial results of HEG LIMITED ("the Company"), for the quarter ended 30th June, 2020 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34, ("Ind AS 34") "Interim Financial Reporting", prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants oflndia. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations including the manner in which it is to be disclosed, or that it contains any material misstatement.

SCV & Co. (formerly known as S. C. Vasudeva & Co.) a partnership firm converted to SCV & Co. LLP a limited liability Partnership with LLP Identification No. AAM-5565 , w.e.f. 3rd May, 2018 ICAI Registration Number is 000235N/N500089

Regd. Office: B-4 1. Lower Ground Floor Panchsheel Enclave, New Delhi-I 10017 T : +91-11 -26499111 W : www.scvindia .com

5. Other Matter

Attention is drawn to the fact that the figures for the three months ended 31st March 2020 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

Our conclusion is not modified in respect of this matter.

For SCV & Co. LLP Chartered Accountants Firm Reg No. 000235N/N500089 $\epsilon$ $t$ red 'Ch Ancountants Sanjiv Mohan

Partner M. No. 086066

Place: Ludhiana Date: 10th August, 2020

UDIN: 20086066AAAAGX3342

IFG	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 STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2020
					₹ in Crores
Sl. No.			Quarter Ended
	Particulars	30-06-2020	31-03-2020	30-06-19	31-03-2020
		Unaudited	Audited	Unaudited	Audited
	Revenue from Operations	233.29	374.44	816.51	2,149.02
Ш	Other Income	46.03	42.29	39.16	143.76
Ш	Total Revenue (I+II)	279.32	416.73	855.67	2,292.78
IV	Expenses
	Cost of materials consumed	86.53	468.61	494.35	1,558.13
	Purchase of stock -in-trade			$\overline{a}$
	Changes in inventories of finished goods, work-in- progress and stock-in-trade	66.12	294.81	(191.75)	62.95
	Employee benefits expense	13.77	(3.75)	28.50
	Finance cost	5.97	8.58	9.25	65.6036.51
	Depreciation and amortisation expense	17.77	18.88	17.72	72.13
	Power and Fuel (Net of Interdivisional Purchases)	27.90	34.56	48.56	163.31
	Other Expenses	50.28	77.64	89.06	304.86
	Total expenses (IV)	268.34	899.32	495.69	2,263.49
$\mathbf v$	Profit/(Loss) before exceptional items and tax (III-IV)	10.98	(482.59)	359.98	29.29
VI	Exceptional Items
VII	Profit/(Loss) before Tax (V-VI)	10.98	(482.59)	359.98	29.29
VIII	Tax expense
	(1) Current Tax	$\overline{\phantom{a}}$	(120.79)	121.78	(0.19)
	(2) Deferred Tax	0.22	4.20	3.81	(23.90)
IX	Net Profit/(Loss) for the period (VII-VIII)	10.76	(366.00)	234.39	53.37
X	Other Comprehensive Income (Net of Taxes)
	A (i) Items that will not be reclassified to profit or loss		(0.98)	$\overline{\phantom{a}}$	(0.70)
	(ii) Income tax relating to items that will not be reclassified to profit or loss		0.25	$\overline{\phantom{0}}$	0.18
	B (i) Items that will be reclassified to profit or loss			٠
	(ii) Income tax relating to items that will be reclassified to profit or loss
XI	Total Comprehensive Income for the period	10.76	(366.73)	234.39	52.85
XII	Paid -Up Equity Share Capital (Face Value Rs. 10/- per share)	38.60	38.60	38.60	38.60
XIII	Reserves (Excluding Revaluation Reserves)		$\overline{\phantom{a}}$		3,384.28
XIV	Earnings Per Share (Rs) - Basic (Rs.)	2.79	(94.83)	60.73
	- Diluted (Rs.)	2.79	(94.83)	60.73	13.83
					13.83

$rac{1}{z}$

SEGMENTWISE REVENUE, RESULTS, ASSETS AND SEGMENT LIABITITIES
Profit before tax and finance cost from each segment
		(489.6s	340.10
		L3.13	(0.s6)	13.55
			0.00
		1476.521	339.54	122.24l.
on sale of Investments( Including gain/(loss) on its Fair Valuation)		7.28	L1.45	35.92
		78.78	77.70	73.25
		(23.ss)		(21,.731
Unallocated / Others

Notes:
above Standalone financial results have been prepared in accordance with the companies (lndian Accounting standards)Rules, 2015 ascribed under section 133 of the Companies Act, 2013 read with relevant rules issued there under.
Financial results have been reviewed by Audit committee and approved by Board of Directors in their respective meetings held on lothAugust,2o2oand have been reviewed by the statutory Auditors of the company. The statutory Auditors have expressed an unmodified conclusionon theaforesaid results.
world Health organisation (wHo) declared outbreak of coronavirus disease (covtD-lg) a global pandemic on March11, 2020. consequent to thas,lockdown on March 2s,2o2o and the company temporarity suspended the operations of the company in:::::1T:::.::Ji:':,TYr:1 iatr^1n1iuee w:th the lockdown instructions issued by central and state governments and resumed the operations from 23rd April 2020.since thewas in force for a significant period of the quarter, the company's operations and financial results for the quarter ended30 June 2020 havebeen adversely impacted. The results for the quarter are, therefore, not comparable with those for the previous quarters.of its liquiditv position and the recoverabitity and carrying value of its assets comprising property, ptant]::::T,:ilj":1_*j:ltl!1:t:".t:n ."n,equipment, intangible assets, right of use assets, investments, inventory and trade receivables. Based on current indicatorsof future economic:tjlls: 1T:""Tli1Yjy"::t^:", rec:velt]rl1rrying amount ofthese assets. rhe situation is changing rapidly givingrise to inherent uncertaintyaround the extent and timing of the potential future impact of the coVlD-19 which may be different from that estimatedas at the d.t" ";;r;;these financial results. The company will continue to closely monitor any material changes arising of future economic conditions andimpact on itsbusiness.
rat'ons at our Hydro Power Ptant at Tawa are seasonal in nature, The plant generally remains closed in the 1st quarter, startsoperating in thequarter, peaks in the 3rd quarter before tapering down in the last quarter.
figures of quarter ended 31 March 2020 are the balancing figures between the audited figures in respect of full financial yearand the publishedudited figures upto 9 months ended 31 December 2019, which were subiect to limited review by the statutory Auditors.
The figures of the previous period have been reclassified wherever considered necessary to make them comparable with current periodclassification.
Place: Noida(U.P)
Dated: 10th August,2020

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

INDEPENDENT AUDITOR'S REVIEW REPORT ON THE QUARTERLY UNAUDITED CONSOLIDATED FINANCIAL RESULTS OF HEG LIMITED PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 20151 AS AMENDED

Review Report to The Board of Directors HEG Limited

• I. We have reviewed the accompanying statement of unaudited Consolidated financial results of HEG LIMITED (''the Company") and its share of the net profit/(loss) after tax and total comprehensive income / loss of its associates for the quarter ended 30th June, 2020 ("the Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ("the Listing Regulations").
• 1. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard 34 (Ind AS 34) "Interim Financial Reporting", prescribed under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (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 statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular no. CIR/CFD/CMDl/44/2019 dated March 29,2019 issued by the SEBI under Regulation 33 (8) of the Listing Regulations to the extent applicable.

1. The Statement includes the results of the following entities:

S.No.	Name of Associates	Relationship
I.	Bhilwara Energy Limited	Associate
2.	Bhilwara Infotechnology Limited	Associate

SCV & Co. (formerly known as S. C. Vasudeva & Co.) a partnership firm converted to SCV & Co. LLP a limited liability Partnership with LLP Identification No. AAM-5565, w.e.f. 3rd May, 2018 !CAI Registration Number is 000235N/N500089

Regd. Office: B-41, Lower Ground Floor Panchsheel Enclave, New Delhi-110017 T : +91 -11-26499111 W: www.scvindia.com

1. Based on our review conducted and procedures perfonned as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the applicable Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the infonnation required to be disclosed in tenns of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

6. Matters reported in the Auditor's Review Report on Consolidated financial results 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 Review Report on Consolidated financial results of the associate which is being reproduced hereunder:

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

In "Chango Y angthang Hydro Power Limited" the Board of directors decided and surrendered the ChangoYangthang HEP (180 MW) project to Directorate of Energy, Government of Himachal Pradesh due to delay and uncertainty in the project executi~m and long delay in Government approvals and licenses lapse, the company has written -off Capital Work in progress during the year 2017-18 amounting to Rs. 27 .13 crores. These events or conditions, along with other matters, 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 Review Report on Consolidated financial results of Bhilwara Energy Limited, an associate of the Company, which are being reproduced hereunder:

(i) 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 ).

Refer note no. 7 (a) of the financial results in this regard.

(ii) 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.

Refer note no. 7 (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 (PP A) with DISCOM has expired on March 31, 2019. BG Wind Power Limited, Subsidiary is pursuing for Power Purchase Agreement (PPA) with DISCOM @ Rs. 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 and Generation Based Incentive (GBI) 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.

Refer note no. 7 (c) of the financial results in this regard.

(iv) 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 ofMoA, in view of the WII report recommending no construction of NyamjnagChhu HEP at site. We are unable to comment on the financial implications and future operations of the company till the final outcome.

Refer note no. 7 (d) of the financial results in this regard.

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

The company has surrendered ChangoYangthang HEP (180MW) project in Himachal Pradesh and asked for the refund of Upfront premium of Rs. 37.89 crores and security deposit of Rs. 1.80 crores 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 oflocal 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 ofGoHP, 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 ChangoYangthang HEP and refused to co-operate on the issue of development of any project. During the meeting called for by the committee, CHYPL 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, 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.

Refer note no. 7 (t) 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.

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

7. Other Matter

(a)The consolidated unaudited financial results include the company's share of net profit after tax of Rs. 3.57 crores and total comprehensive income of Rs. 3.52 crores for the quarter ended 30th June, 2020 as considered in the Consolidated unaudited financial results, in respect of two associates, whose financial results/financial information have not been reviewed by us. These interim financial results/financial information have been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion 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 the other auditors and the procedures performed by us as stated in paragraph 3 above.

Our conclusion on the Statement is not modified in respect of our reliance on the work done by other auditors.

(b) Attention is drawn to the fact that the figures for the three months ended 31 st March 2020 as reported in these financial results are the balancing figures between audited figures in respect of the full previous financial year and the published year to date figures up to the third quarter of the previous financial year. The figures up to the end of the third quarter of previous financial year had only been reviewed and not subjected to audit.

Our conclusion is not modified in respect of this matter.

Place: Ludhiana Date: I 0th August, 2020

For SCV & Co. LLP Chartered Accountants ~1, _____ Fi :~~~~ 35N/N500089 (Sanji~ohan) Partner

M. No. 086066

UDIN:20086066AAAAGW1960

	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@Injbhilwara.com
	STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2020
₹ in Crores
			Quarter Ended		Year Ended
Sl. No.	Particulars	30-06-2020	31-03-2020	30-06-19	31-03-2020
		Unaudited	Audited	Unaudited	Audited
$\mathbf{I}$$\mathbf{H}$	Revenue from OperationsOther Income	233.29	374.44	816.51	2,149.02
Ш	Total Revenue (I+II)	46.03	42.29	39.16	143.76
		279.32	416.73	855.67	2,292.78
IV	Expenses
	Cost of materials consumed	86.53	468.61	494.35	1,558.13
	Purchase of stock-in-trade		$\frac{1}{2}$
	Changes in inventories of finished goods, work-in- progress and stock-in-trade	66.12	294.81	(191.75)	62.95
	Employee benefits expense	13.77
	Finance cost	5.97	(3.75)8.58	28.509.25	65.6036.51
	Depreciation and amortisation expense	17.77	18.88	17.72	72.13
	Power and Fuel (Net of Interdivisional Purchases)	27.90	34.56	48.56	163.31
	Other Expenses	50.28	77.64	89.06	304.86
	Total expenses (IV)	268.34	899.32	495.69	2,263.49
V	Profit/(Loss) before exceptional items and tax (III-IV)	10.98	(482.59)	359.98	29.29
VI	Exceptional Items	$\blacksquare$		$\overline{\phantom{a}}$
VII	Profit/(Loss) before Tax (V-VI)	10.98	(482.59)	359.98	29.29
VIII	Tax expense
	(1) Current Tax		(120.79)	121.78
	(2) Deferred Tax	0.22	4.20	3.81	(0.19)
IX	Share of Profit/ (loss) of associates	3.57	(10.96)	9.09	(23.90)
X	Net Profit/(Loss) for the period (VII-VIII+IX)	14.33	(376.96)	243.47	14.2667.63
XI	Other Comprehensive Income (Net of Taxes)
	A (i) Items that will not be reclassified to profit or loss
			(0.98)		(0.70)
	(ii) Income tax relating to items that will not be reclassified to profit or loss		0.25	$\overline{\phantom{a}}$	0.18
	B (i) Items that will be reclassified to profit or loss		$\overline{\phantom{a}}$	$\overline{\phantom{a}}$
	(ii) Income tax relating to items that will be reclassified to profit or loss
				$\overline{\phantom{a}}$
	C. Share of Other comprehensive Income of Associates	(0.05)	(0.08)	0.01	(0.11)
	Total Comprehensive Income for the period	14.28	(377.78)	243.48	67.00
XII	Paid -Up Equity Share Capital (Face Value Rs. 10/- per share)	38.60	38.60	38.60	38.60
XIII	Reserves (Excluding Revaluation Reserves)	$\overline{\phantom{a}}$			3,473.12
XIV	Earnings Per Share (Rs) - Basic (Rs.)	3.71	(97.67)	63.08	17.52
XV	- Diluted (Rs.)	3.71	(97.67)	63.08

ANDIC

	SEGMENTWISE REVENUE, RESUTT' ASSETS AND SEGMENT LIABITTTIES
	before tax and finance cost from each segment
	on sale of Investments( lncluding gain/(loss) on its Fair Valuationl
	Other Unallocable Income net of exDenses

7

• eabove consolidated financial results have been prepared in accordance with the companies (lndian Accounting standards) Rules, 2015 as prescribed under section 133 the Companies Act, 2013 read with relevant rules issued there under.
• inancial results have been reviewed by Audit committee and approved by Board of Directors in their respective meetings held on 10th August, 2020 and have been eviewed by the Statutory Auditors of the company. The statutory Auditors have expressed an unmodified conclusion on the aforesaid results.
• world Health organisation (wHo) declared outbreak of coronavirus disease (covtD-19) a global pandemic on March 11, 2020. consequent to this, Government of India decfared nationwide lockdown on March23,2o2o and the company temporarily suspended the operations of the company in compliance with the lockdown instructions by central and state governments and resumed the operations from 23rd April 2020. since the lockdown was in force fof a significant period of the quarter, the ny's operations and financial results for the quarter ended 30 June 2o2o have been adversely impacted. The results for the quarter ar€, therefore, not comparable a-- f^. rh^ with those for the previous -,^..1^..- quarters.

The company has made detailed assessment of its liquidity position and the recoverability and carrying value of its assets comprising property, plant and equipment, lll1l.1ijil11ll::ii:1i:: 1':::lil,"':'::*,.1nventory and trade receivables. Based on current indicators or ruture economic conditions, the company expects to ' the carrying amount of these assets. The situation is changing rapidty giving rise to inherent uncertainty around the ext"n, "nJ ii.infoiil;;;;il;." ,lil1l_"."]3"f_:i::.::f:-111:11]i_,|]] ::iimaTd a:.al th: date or approval or these rinanciar resurts. rhe company wil continue to ctosery monitor any changes arising of future economic conditions and impact on its business.

• lrations at our Hydro Power Plant at rawa are seasonal in nature. The plant generally remains closed in the 1st quarter, starts operating in the 2nd quarter, peaks in the quarter before tapering down in the last quarter,
• re ftgures of quarter ended 31 March 2o2o are the balancing figures between the audited figures in respect of full financial year and the published unaudited figures upto months ended 31 December 2019, which were subject to limited revlew by the Statutory Auditors.
• 5 figures of the previous period have been reclassified wherever considered necessary to make them comparable with current period classification.
• The notes disclosed in the consolidated financial statements of Bhilwara Energy Limited, one of the associate companies, referred in the Auditor,s Report of Associate under'Emphasis of matter' paragraph are being reproduced hereunder:

(al Aptil 27,2oL9, the Malana Power company Limited {MPCI) one of Subsidiary has received provisional net demand of rg,069.00 Lakhs in relation to wheeling charges for period April 1, 2008 to March 31, 2019 from Himachal Pradesh state Electricity Board Limited (HPSEBLf based on an order passed by the Himachal pradesh Electricity ttory commission (HPERC), which is not in accordance with the agreement ent€red between the MpcL and HpsEB {now HpsEBL) in August 1999, In this regard, the has paid under protest an amount of t2,817.00 takhs. Based on the legal opinion obtained, the MpcL is of the view that demand is not legally tenable and would not result in any material liabilitv for the period on or before March 2019 on the MPCL and accordingty has fited an appeat b"ro* lpp"l"a" tr;;;;;;"a, at New Delhi.

On October 17, 2019, the Central Electricity Regulatory Commission (CERC) passed an Order on the Dedicated Transmission System of AD Hydro Power Limited (ADHPL) $(b)$ (Subsidiary of 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 ADHPL 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 with the direction to continue to issue the future bills in accordance with the CERC Order till the appeal is finally disposed-off. The ADHPL 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 ADHPL 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 June 30, 2020. Further, the management is confident that there would be no significant impact on the financial position of the ADHPL in respect of transmission losses which is to be determined by the Northern Regional Load Despatch Centre (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 ADHPL in respect of transmission losses as the actual losses during the peak season were likely to be higher.

• Pending execution of the renewal of PPA expired on March 31, 2019, The BG Wind Power Limited (BGWPL) one of its subsidiary has recognised revenue @₹3.14/kwh $(c.)$ (previous PPA @₹3.69/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 @50 Paise /kwh. Since, the Company has exported the power to DISCOM during the period and the Management of the company believes that PPA will be signed therefore it has recognised Revenue from Sale of Power of ₹179.15 Lakhs and Generation Based Incentive (GBI) of ₹28.62 Lakhs. In the meantime, BGWPL has filed writ petition with Rajasthan High Court at Jaipur in this regard.
• Environmental Clearance (EC) of Nyamjang Chhu HEP (6X130 MW) was challenged in National Green Tribunal (NGT) by NGO. NGT in their order dated 7th April, 2016 $(d)$ 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 submitted 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 Nvaminag 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 vide 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.
• During quarter ending 31 March, 2019, Impairment of Capital Work in Progress in Consolidated financial statement shown under other expenses as the company has (e) impaired its investment in one of the subsidiary namely NJC Hydro Power Ltd on the basis of the internal assessment of the management keeping in view of the indicators of the impairment resulting into reduction in the Capital Work-in-Progress by ₹12,389.30 Lakhs as per IND AS 110. During the period an amount of ₹131.86 Lakhs (previous year ₹60.42 Lakhs) further impairement has been done.
• Due to various reasons, Chango Yangthang Hydro Power Limited-Subsidiary, the Chango Yangthang HEP is not being excuted purely on account of various social legal issues $(f)$ not in the control of the company and the company had surrendered the project and filed application with Govt of H.P. for refund of upfront premium and security deposit of ₹3,969.45 Lakhs along with interest @10%. The Company is constantly following up with the State Government for the refund of the premium with interest.

For HEG Limited

Manish Gulati

Place: Noida(U.P) Dated: 10th August, 2020 Executive Director DIN No. 08697512