Dear Members,
Your directors are pleased to present the 53rd Annual Report
on the business and operations of the Company along with Audited Standalone and
Consolidated Financial Statements for the year ended March, 2023
1. FINANCIAL PERFORMANCE AND HIGHLIGHTS
The important financial highlights on standalone basis for the year
ended 31 st March, 2023 are as under:
Particulars |
2022-23 |
2021-22 |
Revenue from Operations |
7,049.46 |
6,954.08 |
Other Income |
36.72 |
43.58 |
Total Income |
7,086.18 |
6,997.66 |
Finance cost |
4,507.08 |
4,532.53 |
Impairment on Financial instruments |
(73.69) |
(245.66) |
Other Expenses including Employee Benefit Exp |
363.38 |
364.85 |
Total expenditure |
4,796.77 |
4,651.72 |
Profit before tax |
2,289.41 |
2,345.94 |
Less: |
|
|
Current tax |
435.00 |
419.00 |
Deferred tax |
154.19 |
210.58 |
Adjustment of tax of earlier years (Net) |
(1.40) |
(0.24) |
Profit after tax |
1,701.62 |
1,716.60 |
Other Comprehensive Income |
24.74 |
(1.92) |
Total Comprehensive Income |
1,726.36 |
1,714.68 |
Balance Surplus of previous year |
2.97 |
0.63 |
Amount available for Appropriation |
1,729.33 |
1,715.31 |
Less: Appropriation |
|
|
Transfer to Special Reserve u/s 36(1)(viii)
of Income Tax Act, 1961 and u/s 29C of NHB Act, |
500.00 |
500.00 |
1987 |
|
|
Transfer to Debenture Redemption Reserve |
280.63 |
331.51 |
Transfer to Reserve for Bad & Doubtful
Debt |
105.00 |
120.00 |
Interim Dividend |
150.14 |
150.14 |
Transfer to Impairment Reserve |
67.88 |
60.18 |
Net surplus after appropriations |
625.68 |
553.48 |
Proposed final dividend |
620.59 |
550.52 |
Surplus available after final dividend |
5.09 |
2.96 |
EPS (Basic/Diluted) (in ) |
8.50 |
8.57 |
During the period, your Company has maintained the pace of growth with
moderate decline of 2.41% in Profit before Tax (PBT).
Your Company has seen a growth of 6.75% in its net worth that has
reached 15,445.25 crore in financial year 2022-23 from
14,468.32 crore in financial year 2021-22.
Consolidated Financial Statements
Pursuant to Section 129(3) of the Companies Act, 2013, the Company has
prepared Consolidated Financial Statement (CFS) in respect of only one Joint Venture
Company namely M/s Shristi Urban Infrastructure Development Limited and an appropriate
disclosure stating the reasons relating to non-consolidation of accounts of other three
companies have been given in the CFS.
A Statement containing salient features of financial statements of
Joint Venture and Associate Companies, has been given in the prescribed format AOC - 1 and
is annexed as part of the financial statements. There are no material changes and
commitments, occurred subsequent to the close of financial year of the date of this
Board's report, affecting the financial position of the company and its state of
affairs
Pursuant to Section 136 of the Companies Act, 2013, the Audited
Financial Statements and all other documents required to be attached with the financial
statements are available on the company's website at www.hudco.org.in and for
inspection till the date of the ensuing Annual General Meeting during business hours on
all working days at the Registered
Office of the Company.
2. DIVIDEND
Y our Company is consistently rewarding its shareholders by way of
dividend payment. The Board of Directors of your Company had earlier approved payment of
interim dividend @ 7.50 %, i.e., 0.75 per equity share having face value of 10/- each
totalling to 150.14 crore on the paid-up equity share capital of the Company in March,
2023 and the same has been paid.
Further, the Board of Directors, have also recommended payment of final
Dividend @ 31.00 %, i.e., 3.10 per equity share having face value of 10/- each for the
financial year 2022-23, subject to approval of the shareholders at the ensuing
53rd Annual General Meeting.
In compliance with Regulation 43-A of Securities and Exchange Board of
India (Listing Obligations and Disclosures Requirement) Regulations, 2015, your Company
has formulated Dividend Distribution Policy' and the same is available on
Company's website at https://www.hudco.org.in//writereaddata/DDP.pdf As per
guidelines issued by Department of Investment and Public Asset Management (DIPAM),
Government of India, Company is required to pay a minimum annual dividend of 30% of Profit
After Tax (PAT) Further, HUDCO had sought exemption from payment of dividend as per
available distributable profits in place of prescribed norms stated in OM dated 27th
May, 2016 issued by Ministry of Finance. DIPAM vide its OM no. 5/4/2016-Policy dated 13th
January, 2017, has conveyed that empowered Committee on Management of Government
Investment in CPSEs in its meeting held on 9th January, 2017, under the
Chairmanship of Secretary, DIPAM, had observed that "Keeping in view the requirement
to meet the statutory deductions out of the profit earned by the Company, the Committee
noted that no exemption may be required by the Company under the guidelines". After
analysis various financial parameters, cash flow position and available distributable
profits, the Board of Directors have paid/recommended total dividend of 3.85 per share
(38.50%).
3. SHARE CAPITAL
As on 31st March, 2023, the authorized share capital of the
Company was 2,500 crore with issued, subscribed and paid-up equity share capital of
2,001.90 crore. The paid-up share capital comprises of promoter's shareholding of
81.81% held by the President of India through the Ministry of Housing and Urban Affair
(MoHUA) - 61.08% and Ministry of Rural Development (MoRD) - 20.73% respectively and the
balance of 18.19% held by the Public. There is no change in the authorized, issued,
subscribed and paid-up equity share capital of the Company during the year. The Company
has not issued any shares with differential voting right/ Sweat Equity Shares during the
year under report. Listing of securities and payment of listing fee
The securities of the Company are listed at BSE Limited (BSE) and
National Stock Exchange of India Limited (NSE) and the annual listing fee for the
financial year 2023-24 has been paid to the Stock Exchanges.
T ransfer of unclaimed Dividend and Shares to Investor Education &
Protection Fund
HUDCO has become a listed company in May, 2017, consequent upon
disinvestment made by President of India of its equity shareholding in the Company. In
compliance of the provisions of Section 124 and 125 of the Companies Act, 2013, company is
not required to transfer any amount of dividend remained unpaid or unclaimed to Investor
Education & Protection Fund (IEPF), as a period of 7 years has not elapsed from the
date it became due for payment. Accordingly, no shares and unclaimed dividend were
transferred to IEPF account.
4. MEMORANDUM OF UNDERSTANDING (MoU)
HUDCO enters into an annual MoU with its Administrative Ministry, i.e.,
Ministry of Housing and Urban Affairs, Government of India, wherein, macro performance
parameters, mainly financial and a few non-financial with annual targets are set by the
Department of Public Enterprises (DPE). Your Company was rated Good' by DPE for
its performance in terms of MoU parameters for the financial year 2021-22. Despite being a
COVID year, HUDCO exhibited resilience by striving hard and navigating through the
multifarious business challenges that it faced and attained its potential performance
For the financial year 2022-23, there were 12 MoU parameters and the
achievement on some key parameters is as presented below:-
. MoU Parameter |
Achievement (Audited & Consolidated) |
1. Loan disbursed to Total Funds Available |
92.89% |
2. Overdue Loans to Total loans(net) |
3.71% |
3. Net NPA/Total loans(net) |
0.52% |
4. Cost of raising funds
through Bonds as compared to similarly rated CPSEs (Margin over Reuters) (in bps) |
(-)4.05 bps |
Based on the actual achievement against the targets set, DPE evaluates
your Company. The MoU rating for financial year
2022-23 is still awaited.
5. LENDING ACTIVITIES
In the wake of the ongoing outbreak of the COVID-19 pandemic, the
financial year 2022-23 witnessed gradual catching up in economic activities. Despite the
alarming challenges posed by COVID-19 pandemic leading to slow economic growth, HUDCO,
with its prudent business policies and proactive management, could register sanctions of
24,572 crore and disbursement of
8,466 crore against the previous year sanctions and release of
20,663 crore and 8,887 crore respectively.
HUDCO in its glorious journey of 53rd years, since its
inception in 1970, has cumulatively sanctioned a total of 17,335 housing and urban
infrastructure projects with a total loan of 2,36,555 crore and disbursements of
1,96,612 crore. Further, your
Company has sanctioned financial assistance to more than 196.48 lakh
housing units both in rural and urban areas in the
Country, of which 187.27 lakh (95.31%) pertains to EWS / LIG
categories.
In addition, under HUDCO Niwas, a retail lending window, your company
has cumulatively sanctioned financial assistance of
6,871 crore to 3.86 lakh individuals and released an amount of
5,178 crore.
Housing Operations
Under Housing sector during the year under review, HUDCO has sanctioned
5 projects with a loan assistance of 3,466 crore, inclusive of 12 crore under HUDCO
Niwas, thereby facilitating construction of 3,49,308 dwelling units. Loan release for an
amount of 1,838 crore (inclusive of 9 crore under HUDCO Niwas) has been made during
current year.
Urban Infrastructure Lending
Under the Urban Infrastructure portfolio, HUDCO has sanctioned 36
projects with a loan assistance of 21,106 crore covering various sectors like Water
Supply, Smart City, Transport Nagar, Social Infrastructure, Commercial Infrastructure,
Road & Transport, Power, etc. Further, a release of 6,628 crore was made during the
year in various schemes.
HUDCO is actively participating in Government of India flagship program
such as Smart City Mission, Atal Mission for
Rejuvenation and Urban Transformation (AMRUT), Jal Jeevan Mission etc. In
the Financial Year 2022-23, major projects sanctioned under:
Housing - HUDCO supported the PMAY(U) flagship programme of GoI
by providing viability gap funding towards State's share in the state of
Chhattisgarh. HUDCO provided financial assistance of2,385 crore for construction of
63,246 DUs under Affordable Housing Project (AHP) and 2,56,880 DUs under
Beneficiary-Led-Construction (BLC) vertical totalling 3,20,126
DUs covering 28 districts and 169 ULBs. Besides the aforesaid mentioned
scheme, HUDCO had also sanctioned a scheme for loan amount of 1,000 crore to Telangana
Housing Board (THB) to construct 28,979 DUs (22,772 DUs in Rural areas and
6,207 Units in Urban Areas under PMAY flagship programme of GoI in the
State of Telangana. The units are proposed with a total plinth area of 560 sqft. with a
provision for living room, two bed rooms, kitchen, toilets and wash area, etc.
Core Infrastructure - HUDCO is actively participating in
Government of India prestigious flagship program of Smart City Mission and AMRUT. In the
FY 2022-23, HUDCO has provided financial assistance of 170 crore for Implementation of
Smart City Project at Kohima and 50 crore for Infrastructure Development work in Udaipur
Smart City, Rajasthan. The other major project sanctioned in the financial year was water
conservation schemes at various Districts of Maharashtra (Loan 3,500 crore) and
Construction of various infrastructure development works in ULBs in Rajasthan (Loan
2,235 crore). HUDCO has also provided loan assistance for JP Ganga Path, Phase-2 in Bihar
(Loan 541 crore), Infrastructure facilities for EWS Housing units under PMAY-HFA
(Urban), Phase-II, in the State of Andhra Pradesh (Loan 750 crore), Construction of 4
lane elevated corridor Patna, Bihar (Loan 275 crore), etc.
The Ganga Driveway Project popularly known as "J.P. Ganga
Path" (Digha to Didarganj) at Patna, Bihar is a landmark project to reshape the local
transport network and improve its efficiency in the capital city of Bihar. The embankment
road of 2.90 Km was proposed to be replaced with elevated structure alongwith
strengthening of two approach road. This 4-lane expressway will reduce the travel time
between Digha (Patna- West) to Didarganj (Patna-East) from 2 hours to just 25 minutes. The
project is in advace stage of implementation.
The project, "Construction of various infrastructure development
works in ULBs in Rajasthan" with financial assistance of
2,235 crore aims to improve the infrastructure facility and provide
basic civic amenities across all ULBs in the State of Rajasthan by undertaking various
infrastructure works such as road upgradation, sewerage, drainage works, construction of
Faecal Sludge Treatment Plants, Town Halls, Bio-Methanation Bottling
Plants, beautification works, etc.
Power & Transport Sector - HUDCO sanctioned Land Acquisition
scheme for Jalna-Nanded Expressway Connector to Hindu Hriday Samrat Balasaheb Thackeray
Samuruddhi Mahamarg to Maharashtra State Road Development Corporation (MSRDC) for a loan
amount of 2,140 crore. The proposed road starts at Jalna on Samruddhi Expressway,
traverses Southwest through Jalna, Parbhani & Nanded Districts and ends on Telangana
Nanded Degloor National Highway No. 161 with overall project corridor length
of 179.772 Km. The proposed alignment passes through 88 villages & 8 Talukas of 3
districts of Jalna, Parbhani & Nanded districts.
HUDCO has also sanctioned a scheme for improvement of power
distribution network to TANGEDCO, with a loan amount of
1,000 crore, which will reduce distribution losses, increased metering
efficiency, etc., thereby improvement in revenues of
TANGEDCO. The proposed scheme is comprising of procurement of
Distribution Transformers of various capacity ranging from 63 KVA to 500 KVA and
procurement of Three Phase static bi directional energy meters for Solar Net Metering
Accurate Measurement of energy consumption. Social Infrastructure - HUDCO had
sanctioned 2,000 crore to Kerala Infrastructure Investment Fund Board (KIIFB) for
improving the medical infrastructure in the State and out of which an amount of 1,000
crore has been released. The sanctioned project is for providing/improving the
infrastructure facilities in 26 Govt. Hospitals scattered throughout the State. The
project envisages construction of new hospital blocks, modernization of existing
facilities and creation/upgradation of required infrastructure facilities. Out of the 26
projects, construction of new buildings & development of infrastructure facilities are
proposed in 19 projects, a combination of construction of new buildings,
extension/renovation and development of infrastructure facilities are proposed in 6
projects and only development of infrastructure facilities is proposed in one project.
HUDCO's role in Government of India scheme(s) for promoting
Housing for All & Urban Development
HUDCO as the premier techno-financial institution assists the Ministry
of Housing and Urban Affairs (MoHUA) in scrutiny and inspection of sample projects / DPRs
under Pradhan Mantri Awas Yojana (PMAY)
(Urban) - Housing for All (HFA) prior to their consideration by
the Ministry for sanction of central assistance.
As a Resource Institution for scrutiny and inspection of sample
projects/ DPRs under Pradhan Mantri Awas Yojana (PMAY) (Urban) - Housing for All Mission,
HUDCO for financial year 2022-23, carried out site and/or desk scrutiny of 40 projects for
1.00359 lakh dwelling units with project cost of 5717.37 crore & GoI assistance of
1504.26 crore covering 01 Affordable Housing in Partnership (AHP) project, 38
(BLC) - New Construction/ Enhancement,Beneficiary
01 In-situ Slum Redevelopment (ISSR) project at various locations in 40
towns/ cities under 13 States/UTs. Cumulatively up to
31st March, 2023, HUDCO has carried out site and/or desk Financial
Assistance under PMAY (Urban), Chhattisgarh scrutiny of 595 projects for 12.37 lakh
DUs with project cost of by State Urban Development Agency (SUDA)
57,946.06 crore & GoI assistance of 18,271.88 crore covering 62
AHP projects, 511 BLC (New Construction/Enhancement) & 22 ISSR
projects (inclusive of 1 ISSR AHP project) at 431 towns/ cities under 34
States/UTs.
HUDCO, as a Central Nodal Agency (CNA), has executed Memorandum of
Understanding with 91 Banks/Primary Lending Institutions (PLIs) for EWS/LIG and 87
Banks/PLIs for MIG-I and MIG-II categories.
During the financial year 2022-23, HUDCO has disbursed subsidy of
628.43 crore to 25718 beneficiaries under EWS/LIG category. Cumulatively, HUDCO has
disbursed CLSS subsidy of 2635.32 crore to 1,11,955 beneficiaries, throughout country
till 31st March, 2023.Out of this, an amount of 2297.40 crore has been
disbursed to 95,887 EWS/LIG beneficiaries while an amount of 337.92 crore has been
disbursed to 16068 MIG category beneficiaries.
Sectorial Overview and Government Initiative
Support to Economically Weaker Sections HUDCO has made
concerted efforts to reach the unreached as well as support the flagship programmes of the
Government of India. HUDCO continues to address the housing requirements of weaker
Sections of the society by offering financial assistance/ loan to the Economically Weaker
Sections (EWS) and Low-
Income Groups (LIG) segment of the society at a comparatively lower
rate of interest. Further, your Company has cumulatively sanctioned financial assistance
to more than 196.48 lakh housing units both in rural and urban areas in the Country, of
which
187.27 lakh (95.31%) pertains to EWS/ LIG categories.
HUDCO's Support for projects in the North-Eastern Region
During the year, HUDCO has supported projects in the NorthEastern Region, and
sanctioned 9 housing and urban infrastructure schemes with loan amount of 279.13 crore
in the States of Assam, Tripura, and Nagaland.
Consultancy Initiatives
HUDCO provides consultancy services in the area(s) of Architectural
Design & Development; Urban & Regional Planning; Appraisal, Scrutiny &
Monitoring of Government Projects; and Environmental Engineering, for the housing and
urban development sector, through a dedicated team of qualified and experienced
professionals from diverse background such as
Architects, Planners, Landscape Experts, Geographers, Engineers,
Valuers, GIS Expert, and other allied professionals that form the core team. The Regional
Offices of HUDCO, having their presence in all state capitals, add to HUDCO's
versatility and outreach of Consultancy works. HUDCO's Construction and Consultancy
Wing, along with the Regional Offices of HUDCO, not only generated fee-based income
providing unique design concepts while remaining responsive to its client's diverse
requirements but also contributed towards branding HUDCO as a nationally recognized
premier techno financial institution.
Post COVID -19 pandemic, works were restricted to a few niche areas,
while work continued on the prestigious assignments having long gestation periods; which
included providing consultancy services for the construction of a Housing Complex for
Tripura Tribal Areas Autonomous District Council (TTAADC) at Tripura and the
Vertical Housing Colony: Shehjar Apartments at Bemina, Srinagar', and the
Integrated Master Plan for Rajgir Regional Planning Area and Nalanda Mahavihara World
Heritage Site in the state of Bihar being prepared on the GIS platform. HUDCO Bangalore RO
has undertaken consultancy assignment for obtaining Environment Clearance for the project
Construction of HAL staff quarters-Type A, B & C in Bangalore, while Chennai
HUDCO RO, through Puducherry Development Office has been involved in
preparation of DPR for Comprehensive EWS
Housing Layout at Kumaraguru Pallam - Puducherry', Master Plan of
Thirunallar Town Development Plan, Ph-II, Development of Queue Complex for Arulmighu
Mariammam Temple Samayapuram, Spiritual Circuit in the UT of Puducherry, and, DPRs for: i)
Identified three lakes at various locations in Puducherry; ii) Development of Arikamedu as
tourism destination in Puducherry; and, iii) Residential school and Marriage hall. HUDCO
is an empanelled institution for Independent Appraisal of Integrated Management Plans
(IMPs) under the National Plan for Conservation of Aquatic Ecosystems (NPCA), a centrally
sponsored scheme being implemented by the Ministry of
Environment Forest & Climate Change (MoEF&CC). During the
financial year 2022-23, as part of Environment Engineering Consultancy, HUDCO carried out
appraisal of Integrated Management Plans for five wetlands across India, namely;
Gurudongmar Wetland Complex (Sikkim), Keetham Wetland (Agra, Uttar
Pradesh), Patna Wetland (Etah, Uttar Pradesh), Saman Wetland (Mainpuri, Uttar Pradesh) and
Sarsai Nawar Wetland (Etawah, Uttar Pradesh) with a total estimated project cost of about
21 crores. Further, three more IMPs from MoEF&CC, namely; Thol Wetland IMP(Gujarat),
Sultanpur National Park IMP (Haryana), and Bhindawas Wildlife Sanctuary IMP (Haryana) for
appraisal under NPCA, are under progress.
AWARDS: HUDCO Consultancy's other Promotional Works
HUDCO's consultancy plays a significant role in information
dissemination, and, increasing awareness about HUDCO's role in urban development and
about GoIs flagship programs focusing on housing and sustainable urban development
through
Exhibitions and Awards instituted to encourage and appreciate the
valuable contribution of the urban professionals towards sustainable habitats, and
thereby, creating awareness on excellence in design, sustainable housing, and urban
development. HUDCO as in previous years, engaged with the young upcoming professionals/
students of Architecture and Planning, supporting activities of the National Association
of Students of Architecture (NASA). HUDCO-NASA Design Trophy 2023 theme "Housing
solution for Native Communities: Moving Towards a Developmentalist'
Paradigm" in line with the GoI's efforts to bring the tribal people into the
mainstream of society, focused on housing solutions for the indigenous people, who have on
account of; rapid urbanization, increasing pressure placed on natural resources, focus on
environmental conservation, etc., suffered grave injustices. The HUDCO DESIGN
AWARDS-2022-23, aimed at encouraging and appreciating the creative and innovative thinking
put in by the professionals to make our cities sustainable and more liveable, and invited
entries under five categories, viz; Cost Effective
Rural/ Urban Housing Deploying Innovative/ Emerging and Disaster
Resistant Technologies, New and Innovative Town Design Solutions/Eco-cities, Conservation
of Heritage, Green Buildings and Landscape Planning & Design. All the winning entries
for these two Awards, for wide dissemination, are brought out as e-publications.
6. FINANCIAL REVIEW (i) Accounting Policies
During the year under report, your company has not made any
modification/ additions in the existing accounting policies.
(ii) Income from Operations and Profitability
Y our Company has reported total income for the financial year
2022-23at 7086.18 crore (previous year 6997.66 crore) inclusive of other income of
36.72 crore (previous year 43.58 crore), while the Profit Before Tax (PBT) for the year
was 2289.41 crore (previous year 2,345.94 crore) and Profit After Tax (PAT) was 1701.62
crore (previous year
1,716.60 crore). Total comprehensive income for the year was reported
at 1726.36 crore (previous year 1,714.68 crore).
(iii) Non-Performing Assets
The Default and NPA position of your Company is regularly monitored to
keep a check on any fresh addition to NPAs, for resolution of old and chronic defaults and
in compliance with the prudential guidelines for Non-Performing Assets (NPAs) under the
Housing Finance Companies (NHB) Directions, 2010, as amended from time to time. The
default and
NPA position of all Regional Offices is regularly monitored by regional
level Default Monitoring & Review Committee and Default Monitoring & Default
Resolution (DMDR) Wing at Head Office. DMDR Wing at Head Office also undertakes joint
review of Regional Offices along with Operations & Law Wing through Video Conferences.
In addition, the overall default
& NPA position is reviewed by Default Monitoring & Resolution
Committee (DMRC), Committee for Review of NPAs (a Board level Committee) and Board of
Directors. As at the end of the financial yearended31 st March, 2023, HUDCO
reported Gross NPA of 2,759.17 crore, which constitutes 3.42% of total loan portfolio.
The Net NPA as on 31st March 2023 is 407.25 crore which constitutes 0.52% to
Net loan outstanding as against MoU target of 0.35%. During the year 2022-23, an amount of
145.58 crore was recovered from the accounts which were in NPA as on 31.03.2022. As on
31st March 2023, Loan Overdue to Net Loan Assets ratio is 3.71% as against MoU
target of 6.50%.
As on 31st March, 2023, out of HUDCO's total loan book
pertaining to Project loans of 80,503.60 crore, Government Agencies constitute 97.03% of
the above loan, i.e., 78,113.25 crore while Private Sector constitutes 2.97%, i.e.
2,390.35 crore. In the case of loans to Government Sector (Project loans), the Gross NPA
is 630.56 crore against loan portfolio of 78,113.25 crore and provision of 239.85
crore has been made towards NPA, whereas, in Private Sector (Project loans), the Gross NPA
is 2,110.84 crore against loan portfolio of 2,390.35 crore and a provision of
2,094.30 crore has been made towards NPA. Further, HUDCO is not
making any fresh sanctions to the private sector, since March, 2013. In respect of Project
Loans, the Company has made a total provision on loans (Impairment) of
2,413.13 crore as per ECL Approach. Out of the above, the provision
on account of loans (Impairment) against NPA (Stage - III) loans is 2,334.15 crore.
(iv) Resource Mobilization
During the year, the Company diversifiedits borrowing portfolio to
meet its operational requirements and constantly optimize cost of funds. During the
financial year 2022-23, the Company mobilized resources aggregating to 16,161 crore from
domestic markets, which included 3,970 crore mobilized through issue of Unsecured,
Taxable, Non-Convertible Debentures (NCDs) on private placement basis, 10,421.50 crore by
way of rupee term loans from banks and 1,769.50 crore by way of short-term loan from
banks. The Company's borrowing is planned taking into consideration ALM gaps,
interest mismatches and the prevailing market conditions.
The Company has been identifiedas a Large Corporate' in
terms of the SEBI Regulations and accordingly has ensured that 25% of its incremental
borrowings during the year was by way of issuance of debt securities. Further, the issue
proceeds of non-convertible debt securities have been fully utilized for the purpose(s)/
objects stated in the offer document / Information memorandum.
Further, for maintaining adequate liquidity and meeting interim
operational/ contingency requirements, credit lines of 11,500 crore were available as on
31st March, 2023 from various scheduled commercial banks. The said facilities,
for short-term funding, were available with the company, without any commitment charges
towards unutilized amounts.
As a part of prudent policy, the short-term resources are suitably
replaced at an opportune time with longer tenor alternate resources depending upon
prevalent market conditions, internal liquidity position and actual operational
requirements.
The Company also reviews the fund position on daily basis and parks
surplus funds in fixed deposits with scheduled commercial banks as per the board approved
policy with an objective of reducing the negative carry to the extent possible.
RBI has prescribed Liquidity Coverage Ratio (LCR) framework for HFCs.
These guidelines aim for maintenance of a liquidity buffer in terms of LCR by ensuring
that HFCs have sufficient High Quality Liquid Asset (HQLA) to survive any acute liquidity
stress scenario lasting for next 30 days. The Company has been complying with the said
directions by maintaining sufficient liquidity buffer in the form of HQLA, as prescribed.
funding profile HUDCOhasadiversified with sources including tax-free bonds, taxable bonds,
refinance from NHB, bank loans, commercial papers, and foreign currency borrowings. As on
31st March, 2023, HUDCO's overall borrowings stood at 62,905.08 crore,
which comprised of long-term borrowings of 61,135.58 crore and short-term borrowings of
1,769.50 crore. Further, as on 31st March, 2023, the long-term borrowings to
Net worth, stood at 3.96 times, as against 4.09 times as on 31st March, 2022.
The composition of outstanding borrowings as on 31st March, 2023 vis-a-vis 31st
March, 2022 are as under:
(v) Domestic and International Credit Rating Domestic
During the financial year 2022-23, the Company's long-term
domestic borrowing programme was awarded the highest credit rating of IND
AAA/Stable', [ICRA] AAA (Stable)' and CARE AAA [Triple A];
Stable' by M/s India Ratings & Research (IRRPL), M/s ICRA and M/s CARE Ratings,
respectively. The Company also got its short-term borrowing programme rated, obtaining the
highest rating of "IND A1+', [ICRA] A1+'' and CARE A1+ [A
One Plus]', by the above-mentioned Credit Rating Agencies.
International
As on 31st March, 2023, HUDCO for its International
Borrowing Programme continued to enjoy International Credit Rating of Baa3'
with Stable outlook and BBB-' with Stable outlook, respectively, from
Moody's and FITCH, International Credit Rating Agencies. Both the assigned ratings
are of investment grade and are at the Sovereign ceiling and equivalent as that of our
Country.
(vi) Cost of Borrowings
The overall weighted average cost of resources raised during the year
was 7.46% p.a. and for borrowings outstanding as on 31st March, 2023 is 7.71%
p.a. (7.43% p.a. as on 31st March, 2022). The weighted average incremental cost
of borrowing through taxable bonds/ debentures, worked out to 4.05 bps lower than the
Reuters Benchmark Yield of AAA' Rated CPSEs of equivalent tenor prevailing at
different points of time when the borrowings were made during the course of the year,
thereby enabling achievement of Excellent category MoU target for cost of borrowings. As a
result, the
Company was able to deliver debt financing for various Housing &
Infrastructure projects, spread across the Country, at competitive rates.
The Company was able to achieve this feat through constant monitoring
of the markets, proper timing of its borrowings and appropriate selection of instruments.
(vii) Redemption of debt securities and repayment of loans (excluding
the borrowings availed and repaid during the same financial year)
The Directors are pleased to report that during the year under review,
the Company successfully redeemed bonds/ debentures and discharged its other debt
obligations amounting to 14,769.40 crore in an efficient manner, without a single
instance of delay or default in debt servicing. These included Bonds/ Debentures valued at
10,236.19 crore, Term
Loans/ Short-Term loans from Banks and financial institutions worth
4,464.04 crore, foreign currency loans availed from Multilateral Agencies aggregating to
66.98 crore and public deposits of 2.19 crore. The Company is set to honour scheduled
obligations towards redemption of Bonds and other long term debt obligations amounting to
around 9,113 crore during the next fiscal.
The Company's internal generations are adequate to meet the
repayment/ redemption obligations. Surplus funds, if any, after meeting the repayment
obligations are invested prudently in the form of fixed deposits with banks.
The Company continues to maintain its impeccable track record of
servicing its debt in time and there has never been a single instance of default.
(viii) Unclaimed amount under HUDCO Bonds
An amount of 13,37,29,791 (inclusive of interest amount of
9,42,19,791) in respect of 3351 bondholders has remained unpaid as on 31st
March 2023 as the same has not been yet claimed by the bondholders.
The details of amount remaining unclaimed are as under:
Financial year |
Amount |
Principal No. of holders |
No. of NCDs |
Amount |
Interest No. of holders |
No. of NCDs |
Total Amount () |
|
() |
|
|
() |
|
|
|
2022-23 |
3,95,10,000 |
141 |
37,035 |
9,42,19,791 |
3351 |
11,24,904 |
13,37,29,791 |
2021-22 |
26,00,000 |
4 |
26 |
10,19,44,131 |
3572 |
11,04,516 |
10,45,44,131 |
In respect of the above unclaimed Bonds, the bond holder(s) have been
requested from time to time through email/ letter, etc., for submission of requisite
documents for claiming the amount of Principal/ Interest, as may be due in their
respective case(s).
In respect of Bonds, the company in terms of SEBI (Listing Obligations
and Disclosure Requirements) (Fifth Amendments) Regulations 2021 dated 7th
September, 2021, is presently transferring principal and/or interest, or both (if any)
which remains unclaimed for 7 years from the date of payment to Investor Education and
Protection Fund (IEPF) constituted in terms of Section 125 of the Companies Act, 2013.
During the Financial year 2022-2023, an amount of 1,87,14,668/- has
been transferred to IEPF on account of Bonds, as per the provisions of SEBI (Listing
Obligations and Disclosure Requirements) (Fifth Amendments) Regulations 2021 dated 7th
September, 2021.
(ix) Dematerialization of Bonds
During the financial year 2022-23, HUDCO has issued Unsecured, Taxable
Bonds/ Debentures in dematerialized form only. With this, all Taxable Bonds/ Debentures,
issued by the Company and outstanding as on 31st March, 2023 are in
dematerialized form only. The Company has made necessary arrangement with NSDL and CDSL
for issue of bonds in dematerialized form. The company has also appointed Registrar &
Transfer Agents (RTA) for maintaining the continuous electronic connectivity with
NSDL/CDSL and investors.
Investors can deal in these Bonds/ Debentures as per the provisions of
Depository Act, 1996, as amended and such deals are cleared & settled in recognised
Stock Exchanges subject to conditions specified by SEBI.
(x) HUDCO Public Deposit Scheme
HUDCO, being a Housing Finance Company registered with National Housing
Bank (NHB) is governed by the provisions of Housing Finance Companies Directions
(NHB/RBI), relating to Public Deposits.
HUDCO had discontinued accepting / renewing Public Deposit under the
Public Deposit Scheme w.e.f. 1st July, 2019, accordingly, during the financial
year 2022-23, no fresh deposits were accepted/renewed by HUDCO. Deposits of 2.19 crore
were matured/paid to 115 depositors in the financial year 2022-23. The total amount
outstanding under
HUDCO Public Deposit Scheme was 1.71 crore from 53 depositors as on 31st
March, 2023
(xi) Unclaimed amount under HUDCO Public Deposit Scheme
As st March, 2023, deposit(s) amounting toon 31
19,22,752/- (inclusive of Principal and Interest) from 17 depositors remains unclaimed. In
respect of unclaimed Deposits, the Deposit holder(s) have been requested from time to time
through email/ letters, etc., for submission of requisite documents for claiming the
unclaimed amount.
During the financial year 2022-23, an amountof 1,12,548/- remained
unclaimed for more than seven years from the date of maturity and was transferred to the
Investor Education and Protection Fund' (IEPF), as per the provisions of the
Companies Act, 2013 and rules made thereunder.
(xii) Deployment of Resources at the close of the year
At the close of the financial year 2022-23, the total resources of your
Company stood 80,970.96 crore. Out ofat this, Equity Share Capital amounted to
2,001.90 crore, Reserves & Surplus stood at 13,443.35 crore, Loans from Financial
Institutions, Commercial Banks, Multilateral Institutions, Public Deposits and Market
Borrowings through Bonds accounted for 62,905.08 crore, Deferred Tax Liabilities (Net)
amounted to 1006.12 crore and other liabilities & provisions stood at 1,614.51
crore. These funds were deployed as Long/Short Term Loan & Advances of 79,236.97
crore, Fixed Assets (net of depreciation) of 109.36 crore (including capital
work-in-progress, Intangible Assets under development and Intangible Assets), Investments
of 631.37 crore, Cash & Bank Balances of 68.85 crore and other assets of 924.41
crore.
7. RISK MANAGEMENT IN HUDCO
In compliance with the directions given by National Housing Bank, HUDCO
has in place Risk Management Policy and Operating
Manual through which it reviewsandassesssignificantrisks on a regular
basis to ensure that there is a robust system of risk controls and mitigation. Major risks
identified for your company, being in lending operations, are credit risk, operational
risk, liquidity risk, market risk, interest rate risk and foreign currency risk, etc. Your
Company has a well-structured robust Risk Management Policy and Operating Manual in line
with its objectives to address the various risks.
In compliance with the SEBI (LODR) Regulations, 2015, your Company has
in place a Board level Committee under the nomenclature Risk Management
Committee' (RMC) headed by a Non-Executive Director, which reviews various decisions/
recommendations of the three sub-committees namely: -- Assets & Liabilities Management
Committee (ALCO); - Credit Risk Management Committee (CRMC); and - Operational Risk
Management Committee (ORMC) Assets and Liabilities Management (ALCO) Committee
reviews the liquidity risks and ensures management of Assets and Liabilities mismatches
through liquidity gap analysis, interest rate sensitivity analysis. The Assets Liabilities
mismatch, if any, are being managed through the committed Bank lines, within the
permissible limits as per NHB guidelines. During the year, 17 meetings of ALCO were held.
Credit Risk Management Committee (CRMC) oversees and ensures
that the credit policies are put in place and are consistently applied while appraising
the proposal for sanction of loan and for ascertaining the credit worthiness of the
applicant/ borrowing agency. During the year, 4 meetings of the CRMC were held.
Operational Risk Management Committee (ORMC) oversees and
ensures the mitigation of operational risk both internal as well as external, like
Technology risk, Employee risk, Customer risk, Capital Asset risk and External risk, etc.,
to which your company is susceptible by establishing & strengthening internal control
systems and procedures and by providing adequate training to the employees. During the
year, 3 meetings of the ORMC were held.
With the prudent policies and professional approach of the management,
HUDCO has been successful in mitigating various risks, briefly described as under: -a)
Operational Risk: To manage the operational risks both internal as well as external
associated with the operations of the Company like technology risk, employee risk, capital
asset risk, external risk, compliance risks viz. external fraud, legal risk, etc., your
Company has established a strong reporting and monitoring mechanism. The requisite
information on the Operational risk is obtained through quarterly reports of
Operational Risk Factors and Key Risk Indicators (KRIs) from Regional Offices/
departments which are further reviewed and analyzed for mitigation of operational risk. b)
Credit Risk: To manage credit risks associated with business, your Company has in place a
strong and effective credit appraisal mechanism containing comprehensive appraisal
techniques/ guidelines ensuring timely repayments of principal & interest amount. c)
Liquidity Risk: For management of liquidity risk, your Company has effective Asset
Liability Management System. The liquidity risk is being monitored with the help of
liquidity gap analysis. Further, the funds are mobilized at competitive rates through
various strategies viz. bonds, term loans, etc., and the mismatch in the Asset and
Liabilities, if any, are managed through the committed Bank lines. d) Market Risk: The
various market risks arising from fluctuations in interest rates and foreign currency
exchange rates are periodically reviewed by the Company. Further, based on cost of funds
and market scenario, the lending rates are determined. The interest rate risk is being
monitored with the help of interest rate sensitivity analysis under the Asset Liability
Management System. e) Foreign Currency Risk: The Company has a Foreign Currency Risk
Management policy for mitigation of risks associated with Foreign Currency fluctuations.
To cover the risks associated with exchange rate and interest rate, your
Company has entered into hedging transactions. As on 31st
March, 2023, the total foreign currency liabilities are USD 10.75 million (INR 74.96
crore) and JPY 24.678 million (INR 1.53 crore) and 20.30% of the foreign currency exchange
rate risk is covered through hedging instruments.
8. JOINT VENTURE, ASSOCIATE AND SUBSIDIARY COMPANY
As on 31st March, 2023, HUDCO has three Joint Venture(s)
Companies, namely, Pragati Social Infrastructure & Development Limited (PSIDL),
Shristi Urban Infrastructure Development Limited (SUIDL), Signa Infrastructure India
Limited (SIIL) and Associate namely Ind Bank Housing Limited (IBHL). Further HUDCO does
not have any subsidiary.
HUDCO had invested 2.14 crore in the Joint venture Companies {PSIDL
0.13 crore (26%), SUIDL 2.00 crore (40%) and SIIL 0.01 crore
(26%)}. HUDCO has decided to exit from joint venture companies by invoking the exit
clauses, as the performance of these joint ventures was not found to be satisfactory. The
Company is in the process of exiting from these joint ventures, for which necessary steps
are being taken. The investment in respect of PSIDL and SIIL is being shown as 1/- in
HUDCO books while accounts of SUIDL are being consolidated with HUDCO accounts.
In the case of IBHL, an associate Company, HUDCO has investment of
2.50 crore which constitutes 25% of paid-up capital in Ind Bank Housing Limited. As per
regulatory guidelines, HUDCO has to bring down its stake below 15%. HUDCO is striving to
bring its stake within prescribed norms. Presently HUDCO is valuing its stake in Ind Bank
Housing Limited at 1 only. Indian Bank along with strategic investors is proposing to
infuse further capital in Ind Bank Housing Finance to revive its operations which would
dilute HUDCO stake.
9. INTERNAL FINANCIAL CONTROL POLICY AND INTERNAL AUDIT
Y our company has adequate Internal Financial Controls (IFC) system for
ensuring, the orderly and efficient conduct of its business, adherence with the laid down
policies and procedures, safeguard of assets of the Company, prevention and detection of
frauds and errors, the accuracy and completeness of the accounting records and the timely
preparation of reliable financial information commensurate with the operations of the
Company. The system also includes Risk Control Matrices and Process Flow Charts to depict
the process to initiate, authorize, process, record, and report transactions; the points
within the process at which misstatements could occur; and control activities that are
designed to prevent or detect such misstatements including providing greater transparency
to segregation of duties.
The Chartered Accountant firms appointed for carrying out Risk Based
Internal Audit are also reviewing and testing the operating efficiency of existing
Internal Financial Controls and found them working satisfactory and effectively during the
year. Being a continuous process, appropriate steps have been taken for further
strengthening the Internal Financial Control Systems.
Internal Audit
Y our Company has a separate Internal Audit Department and Head
Internal Audit directly reports to the Chairman & Managing
Director. In order to strengthen and streamline all the auditable
activities, Internal Audit of your Company is being carried out based on Risk Based
Internal Audit Framework.
During the year under review, Risk Based Internal Audit of all the
Regional Offices and various departments of Corporate Office were outsourced and carried
out by Chartered Accountant Firms in close coordination with Internal Audit Department and
by in-house internal audit team. Comprehensive Internal Audit at Regional Offices have
been carried out by the Chartered Accountant firms.ThesignificantInternal Audit
observations are put up for consideration of the Audit Committee. Necessary action as per
the directions of the Audit Committee is taken by the Internal Audit Department.
Directions have also been issued to all concerned for adherence to the policies,
guidelines, and procedures and for timely compliance of the Audit Observations.
10. INFORMATION TECHNOLOGY
HUDCO is known for its technology support apart from
itsfinancingsupport. HUDCO has taken many new initiatives and progressive reforms to be in
the segment of market leaders. HUDCO has been very keen to use power of digital technology
not only for rising in its business operations but also in secured environment maintaining
transparency in line with national agenda.
The initiatives already taken by HUDCO like implementation of ERP,
Information Storage & Security Systems and e-office will definitely enhance its
operational and financial efficiency.
11. HUDCO AN ISO 9001:2015 CERTIFIED COMPANY
HUDCOisanISO9001:2015certifiedCompany from National
Accreditation Board for Certification Bodies (NABCB)/ United
Accreditation Service (UKAS) through M/s United Registrar of Systems
(URS) Certification Limited. The certification is valid for its major business processes
covering Project and Retail Financing Services, Resource Mobilisation for funding,
Consultancy
Services through the Head Office and all Regional Offices. Human
Settlement Management for Training Research & Networking.HUDCOisrecertifiedas ISO
9001:2015 company for Quality Management System (QMS) from NABCB/UKAS through URS for
these activities and the certification is valid up to 13 th September, 2024.
Significantchanges for improvement have been introduced in HUDCO's QMS with increased
emphasis on seeking opportunities for improvement through Customer Satisfaction and
Stakeholder Consultation. The organization periodically identifies and assesses risks and
eliminates weakness & threats, and challenges for opening new opportunities of
business with optimum allocation of its resources. QMS Auditor awareness cum audit
training is being provided to officers Corporate Office and HSMI through Internal Auditor
training.
12. HUMAN SETTLEMENT MANAGEMENT INSTITUTE
HUDCO's Human Settlement Management Institute (HSMI) is involved
in both Research & Training activities in urban sector.
The Quality Management System of HSMI complies with ISO 9001:2015.
HUDCO'S HSMI has benefitted about 54,764 officials through 1808 training programmes
from 1985-2023 and continues to provide, training support for professionals and a forum
for interaction of administrators, professionals, researchers, and others engaged with the
issues of human settlement development. It has provided training sponsored by Ministry of
External Affairs to more than 1170 overseas participants through 51 ITEC and 6 e-ITEC
training programmes.
T raining Activities
As part of capacity building, HUDCO's HSMI has conducted 19
training programs during the year, imparting training to 1138 participants which included
HUDCO officials and participants from ULBs & other stakeholders. The programme for
HUDCO officials included Webinars on diverse subjects like Only One Earth
Living Sustainably in Harmony with Nature', Analysis of State Budgets and
Generation of Business through Innovative Project Financing', Strategies for
increasing HUDCO's Consultancy income, Stress and Anger Free Living &
lifestyle', and Chair Yoga' were organized
Webinar on Procurement for the benefit through GeM' being
priority of Government. International Training Programme for overseas professionals
Under MEA, ITEC
Online training programmes on Valuation of Real Estate' and
Indian Accounting Standards (Ind-AS)' were conducted during the year 2022-23.
RBI Regulatory Framework & Compliances for NBFCs' Implications for
HUDCO being very important in changing environment was also covered through Webinar. Few
Webinars were also conducted for HUDCO and ULB Officials on Environmental
Sustainability,' Neighbourhood Accessibility Planning and Pedestrianisation in
Future Cities' and Urban Waste Management' during the year 2022-23.
HSMI has also conducted two e-ITEC programmes
sponsoredbyMEAbenefitting23 overseas professionals - firstly on Housing for
Sustainable Habitats-Policy Planning, Design and Technologies' from 10th
to 12th October 2022 for 11 professionals and next on Making Cities
Future Ready Smart and Carbon Neutral' from 7th to 11th
November 2022 for 12 professionals.
HSMI organized the 50th International Training Programme on
Realizing the Right to Adequate Housing in the context of Habitat III New Urban
Agenda - Policies, Planning and Practices" sponsored by the Ministry of External
Affairs (MEA), GoI under its ITEC Programme during January 9th February
17th, 2023. This Programme was attended by 24 delegates from 20 developing
countries. Subsequently, the 51st ITEC training programme on "Formal
solutions to Informal Settlements" was organized from 20th March to 14th
April, 2023. This Programme was attended by 25 delegates representing 19 countries.
HSMI also organized CITYNET two-day on-line Training Programme for
Senior and mid-level officials of Budgets of ULBs - Resource Mobilisation v/s
Responsibilities' fromBodies(ULBs),andHUDCOofficers 7th to 8th
February 2023. The programme was attended by 80 participants.
Publications
SHELTER is a publication of HUDCO's HSMI, having ISSN No.2347-4912
and published twice in a year, i.e., April and October. The April, 2022 issue of Shelter
was "Inclusive Housing" which was released by Shri Hardeep Singh Puri,
Hon'ble Minister of Housing & Urban Affairs during the Annual day celebrations of
HUDCO on 25th April, 2022. The October 2022 issue of Shelter' was on
"Mind the gap: leave no one and no place behind" and was also released by Shri
Hardeep Singh Puri, Hon'ble Minister of Housing & Urban Affairs during the World
Habitat Day celebrations on 3rd October 2022, as an e-magazine.
13. HUMAN RESOURCES
HUDCO recognises the value of Human Resources in delivering accelerated
performance and contributing to the growth of the organization. It considers Human
dimension as the key to Organization's success. Several initiatives for development
of Human Resource to meet new challenges in the competitive business environment have
gained momentum. Your Company has a team of professionals from various disciplines like
Finance, Projects, HR, Law, IT, etc. HUDCO has been a front runner in the area of human
resource management. The guiding principle of HUDCO's Human Resource Management
Policy is to ensure availability of competent, motivated, and effective workforce to
facilitate achievement of its full potential at all times to achieve organizational goals.
As st March,on 312023, HUDCO has a workforce of 673
employees which includes 214 women employees, constituting 31.79% of its total strength.
Women representations have gone across various hierarchical levels. HUDCO has been
complying with all the directives and guidelines issued by the Government of India
regarding reservation for SC/ST/OBC/PwD/ Ex-Servicemen/ EWS.
14. VIGILANCE
As per CVC's circular, as a pre-cursor to Vigilance Awareness Week
2022, during campaign period from 16th August to 15th
November, 2022, various housekeeping activities viz. record management, property
management, disposal of complaints, management of assets, up-dation of guidelines,
circular, etc., and technological initiatives were carried out. Vigilance Awareness Week
was observed by the Company from 31st October to 6th November, 2022
in the Head Officeas well as at all the Reginal Offices. During the week, various
programmes were organized at Corporate Office and at the premises of 21 Regional Offices
throughout the country. The programmes were the theme centric, declared by the CVC, i.e.,
Corruption
Free India for a Developed Nation'. During the year, routine and Vigilance
Awareness Week observed by HUDCO specific inspections of some Regional Offices were
carried out.
15. OFFICIAL LANGUAGE
During the year, your Company has taken various initiatives for the
progressive use of Hindi in official work of HUDCO. Implementing the Official Language
Policy, HUDCO celebrated Rajbhasha Fortnight' in the month of September, 2022
in its Corporate Office and Regional Offices spread throughout the country. Rajbhasha
Fortnight programme began with the inaugural function of All India
Rajbhasha Conference organized at Surat on 14th September, 2022. This inaugural
function and two days All India Rajbhasha Conference was attended by Director (Corporate
Planning) and officials from Head Office and Ahmedabad Regional Office. During the
Rajbhasha
Fortnight programme, various competitions and workshops were organized.
During the period under review, third sub-committee of Committee Shri
M. Nagaraj, DCP (HUDCO), received the award from of Parliament on Official Language
inspected HUDCO's Dehradun, Shri Ajay Mishra, Hon'ble Union Minister of State
for Home NCR, Bengaluru, and Thiruvananthapuram Regional Offices. It is Affairs,
Govt. of India, on the occasion of Hindi Divas, at also referential to mention that
the Parliamentary Committee found Surat, Gujarat the satisfactory implementation of
Official Language Policy in the Regional Offices. During the said period, HUDCO
participated in the meeting of Hindi Consultative Committee of the Ministry of Housing and
Urban Affairs, organized at Ooty on 26th August, 2022. Further HUDCO did not
receive any adverse comments from the Ministry for the progressive use of Official
Language in the Corporation.
Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
An Internal Complaints Committee to examine the cases related to sexual
harassment has in place in HUDCO. This Committee is headed by a senior woman officer of
the Company for redressal of complaints, if any, related to sexual harassment as per
Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013. Sexual Harassment in any form is a misconduct under HUDCO (Conduct,
Discipline and Appeal) Rules. There is no complaint pending at the beginning of the year
and no complaint related to sexual harassment was received during the year.
Public Grievance Redressal Mechanism of HUDCO
HUDCO has an appropriate grievance redressal mechanism and escalation
matrix for receiving, registering and disposal of grievances. HUDCO has been resolving
grievances in a time bound manner. The systemic improvement has been strengthened
including qualitative and quantitative improvements. The grievance system has been
digitized for timely submission and disposal of grievances. Public Grievance Redressal
Mechanism of HUDCO is being followed as per the directions issued by the Government of
India for Centralized Public Grievance Redress and Monitoring System (CPGRMS) portal and
Grievance Registration & Information Database System (GRIDS) portal by Regulators
National Housing Bank/ Reserve Bank of India respectively. Implementation of Micro,
Small & Medium Enterprises (MSME) Policy
As per Ministry of Micro, Small & Medium Enterprises (MSME),
Government of India, directions, every Central Ministry/ Departments/CPSEs are require to
procure 25% of its overall procurement annually through MSME. Out of 25% target,
4% is earmarked for SC/ST and 3% for Women Entrepreneurs. During the
financial year 2022-23, HUDCO has made total procurement of 15.78 crores.
In compliance of the Public Procurement Policy for Micro and Small
erprises, issued by Government of India vide Micro andEnt
Small Enterprise (MSEs) Order, 2012, during the financial year 2022-23,
HUDCO has made the procurement as per details given as under:
Parameter |
Procurement from MSME (out
of total procurement of 15.78 crs.) |
Target |
Achieved |
1. Procurement of goods or services as %
through MSEs |
10.57 |
25.00% |
66.99% |
2. Procurement of goods or services as %
through SC/ST |
0.5078 |
4.00% |
4.80% |
3. Procurement of goods or
services as % through Women Entrepreneurs |
0.6718 |
3.00% |
6.35% |
Further, HUDCO has made all the payments due to MSMEs within the
stipulated time period and there has been no delay.
Right to Information Act
HUDCO has been functioning in all its areas in true letter and spirit
of Right to Information Act, 2005. An appropriate mechanism is in place with a dedicated
centralized RTI Cell to achieve the objective of maintaining transparency in HUDCO. During
the period under report, there has not been any instance of penalties or strictures by any
authority on HUDCO and
HUDCO has achieved a score of 94.96% for transparency audit during the
financial year 2021-22.
17. DIRECTORS' RESPONSIBILITY STATEMENT
As per requirements of Section 134(5) of the Companies Act, 2013, your
Directors confirm that: a) in preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have been made from the
same; b) such accounting policies have been selected and applied them consistently and
made judgments and estimates that are reasonable and prudent to give a true and fair view
of the state of affairs of the Company at the end of the financial year and of the profit
of the Company for the year under review; c) proper and sufficient care has been taken for
the maintenance of adequate accounting records in accordance with provisions of Companies
Act, 2013 for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities; d) the annual accounts have been prepared on a Going
Concern' basis; e) the Company has laid down Internal Financial Controls to be
followed and such Internal Financial Controls are adequate and were operating effectively;
and f) proper systems have been devised to ensure compliance with the provisions of all
applicable laws and such systems were adequate and operating effectively.
18. MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Management Discussions & Analysis Report, stipulated in terms
of the SEBI (LODR) Regulations, 2015 and DPE guidelines, for the year ended 31st March,
2023, is annexed and forms part to the Directors' Report.
19. CORPORATE GOVERNANCE
The Corporate Governance Report as stipulated under Regulation 34(3) of
the SEBI (LODR) Regulations, 2015 and DPE guidelines, togetherwith certificatefrom M/s
Malhotra Arora & Associates, Company Secretaries in Practice, on compliance with the
Corporate Governance norms is annexed and forms part to the Directors' Report.
20. BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
The Business Responsibility & Sustainability Report, as stipulated
under SEBI (LODR) Regulations, 2015, is annexed and forms part to the Directors'
Report.
21. DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the year under report, following changes took place in the
composition of the Board of Directors
: Chairman & Managing Director
Ministry of Housing and Urban Affairs (MoHUA), Government of India,
vide order dated 22nd October, 2020 had assigned additional charge of the post
of Chairman & Managing Director, HUDCO to Shri Kamran Rizvi, I.A.S., Additional
Secretary, MoHUA, GoI for a period of 6 months, which has been further extended vide
order(s) dated 1st July, 2021 (w.e.f. 22nd April,2021), 6th
December, 2021 (w.e.f. 22nd October, 2021) and 10th May, 2022
(w.e.f. 22nd April, 2022) for a period of 6 months each or till appointment of
a regular incumbent to the post, or until further orders, whichever is the earliest.
Accordingly, he ceased to be Chairman & Managing Director, HUDCO with effect from 22nd
October, 2022.
Further, the MoHUA vide its order dated 27th March, 2023 has
assigned the additional charge of the post of Chairman & Managing Director, HUDCO to
Shri Kuldip Narayan, Joint Secretary (HFA), MoHUA, for a period of 6 months with effect
from the date of his assumption of charge of the post, or till a regular incumbent join
the post, or until further orders, whichever is the earliest. Shri Narayan has assumed the
charge of the post of CMD, HUDCO with effect from 27th March, 2023 (F/N).
Part-time Official (Government) Director
MoHUA, Government of India: a) vide order dated 6th
October, 2022 has conveyed cessation of Shri Shyam S. Dubey as Part-time Official Director
on the Board of HUDCO, w.e.f., 4th August, 2022, however, the same is effective
from 12th October, 2022, being the date of approval by the Board of Directors
of HUDCO; b) vide order dated 18th November, 2022 has appointed Shri Ashish
Upadhyaya, Special Secretary & Financial Adviser,
Ministry of Power as Part-time Official Director, on the Board of
Directors of HUDCO, in his capacity as Link Officer of
Financial Advisor, MoHUA with effect from 18th November,
2022; and c) vide order dated 21st December, 2022 has appointed Shri Sanjeet,
Joint Secretary & Financial Adviser, MoHUA as
Part-time Official Director, on the Board of Directors of HUDCO in
place of Shri Ashish Upadhyaya with effect from 21st December, 2022. The
appointment of Shri Sanjeet as Part-time Official Director, on the Board of Directors of
HUDCO is effective from 22nd December, 2022 being the date of allotment of DIN
by Ministry of Corporate Affairs, Government of India. In compliance with the provisions
of the Companies Act, 2013 and SEBI(LODR) Regulations, 2015, approval of the shareholders
regarding appointment of Shri Sanjeet, Part-time Official Director (liable to retire by
rotation), as Director has been obtained through postal ballot process on 29th
January, 2023.
As per requirements of Section 152 of the Companies Act, 2013
[including any statutory modification(s) or re-enactment(s) thereof, for time being in
force, read with the applicable rules, as amended] and Articles of Association of the
Company, Shri
Muniappa Nagaraj (DIN: 05184848), Director (Corporate Planning) being
longest in office among the Directors since their last appointment, is liable to retire by
rotation and being eligible, offers himself for reappointment at the ensuing Annual
General Meeting.
After the closure of the financial year, MoHUA, GoI vide order dated 24th
April, 2023 has appointed Shri Satinder Pal Singh, Additional Secretary, MoHUA, as
part-time Official Director, on the Board of Directors of HUDCO in place of Shri Kuldip
Narayan with immediate effect until further orders.
The Board recommends reappointment of Shri Muniappa Nagaraj, Director
(Corporate Planning) and appointment of Shri
Satinder Pal Singh, as Part-time Official Director for approval of the
members at the 53rd Annual General Meeting, on the same terms and conditions as
earlier approved by the President of India.
The Board placed on record its appreciation for the valuable services
rendered by Shri Kamran Rizvi, as Chairman & Managing
Director, Shri Shyam S. Dubey and Shri Ashish Upadhyaya, as Part-time
Official Directors during their tenure with the Company and extended a warm welcome to
Shri Sanjeet and Shri Satinder Pal Singh, newly appointed Part-time Official Directors and
Shri Kuldip Narayan, as CMD, HUDCO.
During the year, all the Independent Directors have met the
requirements as to their Independence, as stipulated under Section 149(6) of the Companies
Act and Regulation 16(1)(b) of the SEBI (LODR) Regulations, 2015 and declaration in this
respect has been received from them.
KEY MANAGERIAL PERSONNEL
The details of Key Managerial Personnel including changes occurred
during the year and thereafter are as under:
Name of Key Managerial Personnel |
Designation |
1. Shri Kamran Rizvi |
Chairman & Managing Director (Additional
Charge) upto 21.10.2022 |
2. Shri Kuldip Narayan |
Chairman & Managing Director (Additional
Charge) w.e.f. 27.03.2023 |
3. Shri Muniappa Nagaraj |
Director Corporate Planning |
4. Shri D. Guhan |
Director Finance & Chief Financial
Officer |
5. Shri Harish Kumar Sharma |
Company Secretary & Compliance Officer |
22. SECRETARIAL AUDITORS & AUDIT REPORT
In compliance of the provisions of Section 204 of the Companies Act,
2013, M/s Malhotra Arora & Associates, Company
Secretaries in Practice, Secretarial Auditors have conducted
Secretarial Audit for financial year 2022-23 and have in their report confirms that the
Company has complied with the provisions of the Act, Rules, Regulations and Guidelines
applicable to the Company and there were no qualifications, reservations, or adverse
remarks except certain observations, which are self-explanatory. The Secretarial Audit
Report is annexed and forms part to the Directors' Report.
23. AUDITORS & AUDITOR'S REPORT
As per Section 139(5) of the Companies Act, 2013, the Statutory
Auditors of your Company is appointed by Comptroller and Auditor General of India (CAG).
M/s APRA & Associates, LLP, (regd. no. DE2438), Chartered Accountants, New Delhi has
been appointed as Statutory Auditors of your Company for the financial year 2022-23 by the
CAG.
M/s APRA & Associates LLP, Chartered Accountants
(FRN-011078N/N500064), New Delhi, the Statutory Auditors had conducted the audit of the
financial statements (both standalone and consolidated) for the financial year 2022-23 and
submitted their report thereon. The comments of the Statutory Auditors on the financial
statements along with management reply thereon are annexed and forms part of the report.
Notes on financial statement referred to in theAuditors Report are self-explanatory.
Comments of Comptroller and Auditor General of India (CAG)
CAG vide their letter dated 4th August, 2023 has given
NIL comments' on the audited financial statements (both standalone and
consolidated) for the financial year 2022-23 under Section 143 of the Companies and forms
part of this report. However, they have given 3 (three) comments on the Auditors Report on
Standalone Financial Statements in their report, which are self-explanatory and management
has no comments to offer thereon.
(i) Corporate Social Responsibility Committee
In accordance with the provisions of Companies Act 2013, HUDCO Board of
Directors had constituted Corporate Social Responsibility Committee. As on 31st
March 2023, the Committee consists of 6 members comprising of Shri M Nagaraj, as Chairman
of the Committee and Shri Kuldip Narayan, Dr. Ravindra Kumar Ray, Dr. Siyaram Singh, Smt.
Sabitha Bojan and Shri Banshi Lal Gujar as members of the Committee.
The extant Corporate Social Responsibility Policy of the Company is
available on Company's website at the following link:
https://www.hudco.org/writereaddata/csrpolicy.pdf CSR assistance for Strengthening
& Restructuring of Sub-Centres of PHCs, Bavali, Kerala
The Annual Report on CSR activities for financial year
2022-23 indicating details of expenditure to be incurred and
expenditure incurred on CSR activities during the financial year along with the reasons
for not spending the entire amount allocated for CSR activities along with other
information is attached with the Directors' Report.
During the financial year 2022-23, an amount of 44,98,12,667/-
was to be incurred on CSR activities, out of which CSR assistance amounting to
26,67,94,463/- for 19 proposals has been approved. However, no expenditure from the
proposals approved during the year has been incurred as the agencies were in process of
completion of documentation, etc., and accordingly, the unspent amount has been
transferred to the Unspent CSR Account opened in a scheduled bank and shall be spend as
per provision of CSR amended rules of Companies Act, 2003. Further, in addition to this,
during the financial year 2022-23, the company has spent a total amount of 3,20,72,843/-
for the ongoing projects sanctioned prior to 31st March, 2021.
As on 31st March, 2023, an amount of 18,30,18,204/- being
the unspent CSR amount other than the ongoing CSR activities from the CSR amount allocated
for the financial year 2022-23, shall be transferred to one of the funds specified in
Schedule VII of the Companies Act, 2013 within the stipulated time period, i.e., on or
before 30th September, 2023. Further, an amount of 25,87,90,596/- being the
unspent CSR amount other than ongoing CSR activities as on 31st March, 2022
(16,99,00,000/- is the unspent CSR budget of financial year 2021-22 and 8,88,90,596/- up
to 2020-21) was transferred to Swachh Bharat Kosh', a fund specified in
Schedule VII of the Companies Act, 2013 on 30 th September, 2022 in accordance
with details mentioned in the annual report on CSR activities for financial year 2021-22;
(ii) Board and its Committees
The details as to the composition of the Board and its various
Committees, scope & terms of reference, number of meetings held and attended by
directors/members during the year along with other particulars are given in the Corporate
Governance Report, and the same is annexed and forms part of this report;
(iii) Particulars of Loans, Guarantee, or Investments
The necessary disclosures with respect to loan made, guarantee given or
securities provided by the Company in its ordinary course of business have not been given,
since, provisions of Section 186 of the Companies Act, 2013, are not applicable to your
Company, being a Housing Finance Company. The detail with respect to investments made by
the
Company forms part of the financial statements for the year 2022-23;
(iv) Annual Return
Pursuant to Section 92(3) and Section 134(3)(a) of the Companies Act,
2013, the Annual Return as at 31st March, 2023 will be available on the
website of the Company on the following link: https://hudco.org.in//Site/
FormTemplete/frmTemp1PLargeTC1C_P.aspx?MnId=463&ParentID=391;
(v) HUDCO being a Government Company, the provisions of Section
164(2) of the Act in respect of disqualification of directors are not applicable to the
company in terms of notification no. G.S.R.463(E) dated 5th June, 2015 issued
by Ministry of Corporate Affairs, Government of India; (vi) HUDCO, being a
Government Company is exempted from the provisions of Section 197 of the Companies Act,
2013 and Rules made thereunder relating to managerial remuneration, hence, no disclosure
is required to be made; (vii) As per the statutory provisions, a listed company is
required to disclose in its Board's Report, a statement indicating the manner in
which formal annual evaluation of the performance of the Board, its committees and
individual Directors has been made and the criteria for performance evaluation of its
Independent Directors, as laid down by the Nomination & Remuneration Committee.
The Ministry of Corporate Affairs, Government of India vide
notification th June,dated 2015 has, inter-alia, exempted Government
companies from the above requirement, in case the Directors are evaluated by the Ministry
or Department of the Central Government which is administratively in charge of the
company, as per its own evaluation methodology.
Further, MCA vide notification dated July 5, 2017, also prescribed that
the provisions relating to review of performance of Independent Directors and evaluation
mechanism prescribed in Schedule IV of the Companies Act, 2013, is not applicable to
Government companies.
Accordingly, HUDCO, being a Government company, is exempted in terms of
the above notifications, as the evaluation of performance of all members of the Board of
the Company is being done by the Administrative Ministry, i.e., the Ministry of Housing
and Urban Affairs, GoI; (viii) The Company is compliant with the applicable
Secretarial Standards issued by Institute of Company Secretaries of India (ICSI); (ix)
In compliance of the SEBI(LODR) Regulations, 2015, and DPE Guidelines on Corporate
Governance, based on the from Board Members and Senior Management Personnel, declaration
regarding compliance of affirmation
Code of Conduct made by the Chairman & Managing Director is annexed
and forms part to the Directors' Report. A copy of the Code is available on the
website of the Company at www.hudco.org.in; (x) In compliance with Regulation
25(10) of the SEBI (LODR) Regulations, 2015, your company has obtained Directors and
Officers Liability Insurance Policy, ensuring adequate insurance
coverage, covering all the directors of the Company including Independent Directors, Key
Managerial Personnel, and Senior Officers against the risk of financial loss including the
expenses pertaining to defence cost and legal representation expenses arising in the
normal course of business;
(xi) Energy Conservation, Technology Absorption and Foreign
Exchange Earnings & Outgo. Energy Conservation and Technology Absorption
As HUDCO does not own any manufacturing unit/facility, there are no
specific application relating to conservation of energy and technology absorption.
However, HUDCO, being an energy conscious organization has taken various initiatives in
the direction of energy conservation on a continuous basis.
Foreign Exchange Earnings and Outgo
During the financial year 2022-23, foreign exchange inflows was 0.06
crore (previous year 0.27 crore) and foreign currency outflow was 2.51 crore (previous
year 1.46 crore); (xii) There is no change in the nature of business of the
Company during the year;
(xiii) There and material orders passed by the regulators or
courts or tribunals impacting the going concern arenosignificant status and operations of
your company in future;
(xiv) The Central Government has not prescribed the maintenance of
cost records for the products/services of the Company under the Companies (Cost Records
and Audit) Amendment Rules, 2014 prescribed by the Central Government under
Section 148 of the Companies Act, 2013. Accordingly, cost accounts and
records are not required to be maintained by the Company; (xv) HUDCO has not made
any application under the Insolvency and Bankruptcy Code, 2016 (31 of 2016), directly on
standalone basis during the year; (xvi) The Company has not entered into one time
settlement with Banks or Financial Institutions during the year, hence, details of
difference between amount of the valuation done at the time of one-time settlement and the
valuation done while taking loan from the Banks or Financial Institutions is not given;
and (xvii) During the year under review, the statutory auditor, has not reported
any material case of fraud committed against by its officers or employees under Section
143(12) of the CompaniesAct, 2013, hence, no disclosure is made.
25. FUTURE OUTLOOK - MEDIUM AND LONG-TERM STRATEGIES
The massive reach of COVID-19 pandemic has de-accelerated the economy
of the World at large, to which India is no omission. HUDCO operations have been impacted
post COVID-19 pandemic due to this slowdown. The future outlook, both medium and long-term
strategies are summarized hereunder:
a. Demand for housing across India continued to show resilience. As per
NHB RESIDEX Composite price index for 50 cities, the prices in 50 major cities in India
has been steadily on the increasing trend. This signifies the growing demand for housing
in the country, particularly in affordable housing segment. Given the scenario it is
expected that there will be good demand for Housing finance in the country;
b. The enhanced allocation for Pradhan Mantri Awaas Yojana (Urban &
Rural) by 66%, 79,590 crore during 2023-24 in the union budget will have rippling effect
on the housing activities in the country. Thus, it is expected that viability gap funding
requirements from the state governments would gather momentum by mid of the financial year
2023-24. HUDCO being a major partner in many such housing schemes by the various State
Governments would garner this opportunity with right pricing of loan;
c. HUDCO has a vigorous plan to proactively assist State Governments in
implementation of Government of India program relating to urban development in a mission
mode;
d. HUDCO is making all out efforts to tap potential business for
viability gap funding in Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
and Smart City projects;
e. AMRUT, launched in June 2015 in selected 500 cities, seeks to focus
on developing basic infrastructure related to several services such as water supply,
sewerage, and non-motorised urban transport. AMRUT 2.0 was launched in
October 2021 for five years (2021-22 to 2025-26). AMRUT 2.0 seeks to
provide water supply to households and in 2023-24, it has been allocated 8,000 crore
under the budget; f. The Smart Cities Mission, launched in June 2015 for five years, seeks
to promote 100 smart cities that provide core infrastructure. In 2023-24 budget, the
Mission has been allocated 8,000 crore; g. Swachh Bharat Mission (U) has been allocated
5,000 crore in 2023-24. HUDCO Regional Offices are assisting and handholding with State
Government Parastatal and Nodal Agencies of this program for providing financial
assistance/
Viability Gap Funding;
h. Under Jal Jeevan Mission-Har Ghar, Nal Se Jal allocation of 60,000
crore to cover 3.8 crore households in 2022-23, HUDCO will make all out efforts to tap
potential business for viability gap funding;
i. Health infrastructure needed a major attention during COVID 19, the
pandemic posed lot of challenges to administration all over the country, which
necessitates establishing modern and state of the art health care facilities all over
country. HUDCO would continue to fund Social Infrastructure Projects like Health Centres,
Government Hospitals, Medical Colleges, etc., being a priority sector lending for HUDCO,
as the State Governments would be requiring huge funds to expand their Health Care
Infrastructure;
j. HUDCO would also give priority for funding Urban Metro Rail projects
of all major cities, as the Government is keen to expand the metro network in different
cities and is looking for external participation for such projects; and
k. HUDCO needs to enlarge its operation in rural areas also so as to
cover infrastructure development in both urban and rural areas, without any distinction.
26. ST ATUTORY AND OTHER INFORMATION REQUIREMENT
The particulars of annexure(s) forming part to the Directors'
Report are as under:
Particulars |
Annexure |
Management Discussion & Analysis Report |
1 |
Corporate Governance Report |
2 |
Business Responsibility & Sustainability
Report |
3 |
Particulars |
Annexure |
Secretarial Audit Report |
4 |
Annual Report on CSR Activities |
5 |
Declaration of the Code of Conduct |
6 |
Management Reply to comments of Statutory
Auditors on financial statements |
7 |
Comments of the Comptroller and Auditors
General of India |
8 |
27. ACKNOWLEDGEMENT
The Board of Directors of your Company acknowledge its deep sense of
appreciation for the continuous support, guidance and cooperation extended by the
Government of India, especially the Ministry of Housing and Urban Affairs, Ministry of
Rural Development, Ministry of Finance, Reserve Bank of India, National Housing Bank,
Ministry of Corporate Affairs, Department of Public Enterprises, Regulatory/Statutory
Authorities and various other departments of the Central/State Governments, Stock
Exchanges, Depositories, Credit Rating Agencies, Registrar & Transfer Agents,
Debenture Trustee
(s) and other agencies. The Board of Directors also conveys its gratitude
for the unstinting support and cooperation given by the shareholders, bondholders, public
deposit holders, Bankers, Financial Institutions, Housing Boards, Development Authorities,
Municipal/ Local Bodies and other stakeholders associated with the company. The Board of
Directors also acknowledges the valuable suggestions and guidance extended by Comptroller
& Auditor General of India, Statutory Auditors, Secretarial Auditors, and other
professionals associated with the Company. The Board of Directors also take this
opportunity to acknowledge and appreciate the hard work and efforts put in by HUDCO
employees at all levels towards achievement of the all-round growth of the company.
|
For and on behalf of the Board of
Director |
|
Sd/- |
|
Kuldip Narayan |
Place : New Delhi |
Chairman & Managing Director |
Date : 22nd August, 2023 |
|
|
(DIN: 03276525) |
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