Annual Report 2023 - 24

Chairman's Address
71st Annual General Meeting of HMT Limited

My Dear Shareholders, challenges. HMT takes pride and assures its support
in the nation’s economic growth.
It is an honour to present to you the Annual Report
of HMT Limited for the year 2023-24. I take this Manufacturing impact on the future of Indian
opportunity to welcome you all on behalf of Board Economy:
of Directors. This year has been marked with several Historically, it may be viewed that the manufacturing
shifts with respect to the market trends. However, sector has played a significant role in the country’s
considering the global standpoint, condition of the growth during the post-independence era. That
Indian economy and effect of various initiatives that said, in the recent past the contributions from
impact the manufacturing sector, it is imperative the manufacturing sector to the GDP have been
that we work continuously towards overcoming the overshadowed by the contributions from the services
challenges. sector.
Global Outlook: However, the government of India envisions the
Globally, the year began with the onslaughts of the contributions of the manufacturing sector to increase
ongoing geo-political issues, followed by a globally in times ahead. With the manufacturing sector
synchronised monetary policy tightening. Despite contributing to 14% of the GVA, this sector is a vital
these gloomy events, the global scenario has cog in development of Indian economy and in its
witnessed a general growth of 3.2% year over year transformation from an agrarian economy to an
and the projected trends for the future years also industrial powerhouse.
suggest a stable growth for developing economies.
Through various initiatives such as the Make in India
With the advancements in technology and continuous initiative, Productivity Linked Incentive (PLI) Schemes,
integration of AI based technologies, innovation policy support and infrastructure & global supply
and product development is the need of the hour. chain developments, Government of India tasks itself
The global trends may be perceived as market with an objective to place India amongst the leaders
opportunities, but they also present themselves as in the manufacturing sector. The constant growth in
challenges which HMT Limited as a group may be capacity utilisation in the manufacturing sector over
tasked with in the future. the past years is a testament to the government’s
efforts in this regard.
Despite the challenges we as a group need to hold
true to our core strengths and be steadfast in our With renewed focus on the manufacturing sector,
commitment to quality and customer satisfaction. HMT has the potential to play a significant role in
country’s plans to give a boost to manufacturing
Indian Economy: sector. The company is taking measures to maximise
India has recorded an overall growth of 7.8% in GDP utilisation of the policies in place and support by the
in the year 2023 and is projected to maintain a steady government in order to expand its business.
6.5% growth in the coming years as per the World
Performance & Business Accomplishments
Economy Outlook, April 2024. Stemming from the
industrial growth, Make-in-India initiative, FDI and HMT Limited on a standalone basis, achieved a
domestic investment, government policies, Indian revenue of Rs. 47.91 crores from operations in the
economy has demonstrated resilience and continued year 2023-2024 vis-à-vis Rs. 51.59 crores in the year
growth even when faced with global and domestic 2022-2023. Despite the dip in the revenue from

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 Annual Report 2023 - 24

operations the company has witnessed a growth of The Company’s growth strategies are multifaceted
17% in the Profit Before Taxes during the year 2023- and formulated to enhance our market presence and
2024. HMT Limited recorded a PBT of Rs. 17.47 crores expand our product offerings. One of the key areas
in the year 2023-2024 vis-à-vis Rs. 14.9 crores in the is stocking General-Purpose Machines to ensure
year 2022-2023. timely delivery to customers to meet the market
HMT Group of Companies in the year 2023-2024 has requirement. In addition, the company is intensifying
recorded a revenue from operations of Rs. 163.39 the efforts to strengthen sales, after-sales services
crores vis-à-vis Rs. 203.8 crores in the year 2022-2023. and marketing through appointment of channel
partners. The company aims to enhance customer
The growth in demand for dairy products and satisfaction and expand its reach in the market. In line
machinery in the dairy industry drives the desire of with the commitment to innovation, efforts for the
the company to expand its dairy machinery business. development of new products have been intensified.
Further the contribution to turnover from sale of By leveraging HMT MTL’s manufacturing prowess and
watches has witnessed an increase from 14% in the collaborating with academic institutions, the company
year 2022-2023 to 25% in the year 2023-2024. This is stretching its boundaries to the field of hi-tech
demonstrates our ability to navigate through difficult machines. The Company’s association with esteemed
times and emerge strong. Moving forward, product institutions like IIT BHU Varanasi and IISc, Bengaluru,
upgradation, collaborations, and turnkey projects are serve as a testament to the company’s dedication
rudimentary for the company to maintain a strong to fostering research and development of advanced
foothold in the ever-growing market. technology. The company has also taken initiatives
Initiatives at the Subsidiaries to expand its customer component manufacturing
endeavours within crucial industries and sectors like
The Subsidiaries of the Company undertook several railways, defence, and atomic energy.
initiatives during the year 2023-24.
Exports
Machine Tools Business
HMT Machine Tools Limited (HMT MTL) achieved HMT (International) Limited, has observed a
sales of Rs. 99.70 crores in the year 2023-2024 in steady increase in sales over the past two years. In
comparison to the Rs.142.24 crores sales achieved 2023-24, HMT(I) achieved sales of Rs.17.59 crores,
in the year 2022-2023. Net Profit figures remained vis-a-vis Rs.14.15 crores in the year 2022-23. This
negative (Rs.155) crores in the year 2023-2024 growth trajectory is a testament to the brand value
against the net loss of (Rs. 132) crores recorded in that HMT holds globally and the company’s ability to
the year 2022-2023. Despite this, the Company is adapt to global market dynamics. Similarly, the PBT
actively working towards strengthening its business figures have shown improvement, with Rs.4.81 crores
and leveraging its strength to drive growth. recorded in 2023-24 vis-à-vis Rs.0.31 crores recorded
in the year 2022-23.
In this competitive world of manufacturing of complex
machine tools where technology denial also plays The company has submitted offers/proposals for
a major role in crippling our growth, HMT MTL has setting up of Demonstration cum Training centres,
designed and developed several import substitution MSME Production centres, Industrial Training centres,
machines over the years to provide flexible, accurate etc. and has initiated for becoming a Nodal Agency to
and cost-effective solutions to various strategic the Ministry of External Affairs (MEA), Government of
sectors. These machines are developed indigenously India for implementing MEA funded turnkey projects
and priced at almost half the price of imported such as Vocational Training / Skill Development
machines and are aligned with our Hon’ble Prime centres as part of the Government of India’s grant-in-
Minister’s vision of ‘ATMANIRBHAR BHARAT’. aid projects. These initiatives reflect the company’s
commitment to improve the performance of HMT

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 Annual Report 2023 - 24

group of companies and globally position the Within India also, the dairy machinery industry is
company as a leading player in the industry. set for a progressive growth in the coming years.
Company is pursuing to utilise technologies to boost
Future Outlook
production efficiency and optimise supply chains
Dairy Machinery to align their offerings with the changing consumer
The global dairy machinery market is projected to needs and remain relevant in the market.
grow at a CAGR of around 5-7% over the coming Machine Tools
years. The factors contributing to such robust growth
include: The global market is projected to grow at a CAGR of
5.41% from 2024 to 2031 and is estimated to reach a
● The increasing demand for dairy products, value of USD 145.82 billion by 2031. This growth will
particularly in emerging economies. With the be driven by a number of factors, including:
rising population, urbanisation and income rise, ● Industrial Automation and Technological
there’s a higher consumption of dairy products, Advancements: Increasing adoption of
which in turn boosts the need for advanced automation and smart technologies in
machinery to handle production efficiently. manufacturing processes is driving demand for
● Innovations in dairy machinery, such as advanced machine tools. Innovations such as
automation and smart technology, improved CNC (Computer Numerical Control) machines,
efficiency, reduced labour costs, and enhanced 3D printing and advanced robotics contribute
product quality which in turn shapes the future to market growth by improving production
market. Modernisation of the dairy industry also efficiency and capabilities.
entices newer investments from bigger parties ● Manufacturing Growth: Expansion in various
leading to the increased demands. manufacturing sectors including automotive,
● Economic conditions and Government support aerospace and electronics, supports the need for
affect the investments in dairy machinery. high-precision and high-performance machine
With the global economic conditions poised to tools.
grow at a steady rate, and support from various
government institutes in the form of subsidies ● Emerging Markets: Growth in emerging
and tax breaks the sustainable growth of the economies, where industrialization and
diary machinery industry is on the cards. infrastructure development are accelerating, is a
significant driver for the machine tools market.
● Changing consumer preferences: ‘A2’ milk
represents the fastest-growing segment in ● Investment in Modernization: Investment in
the dairy market. Its growth is driven by modernizing existing manufacturing facilities
the increasing consumer belief regarding its and adopting new technologies, fuel demand for
enhanced digestibility and potential health advanced machine tools.
benefits compared to standard milk. As is the case with any industry, the machine tools
industry is also subject to the disruptions fuelled by
Overall future-outlook for the dairy machinery new technologies, such as Artificial Intelligence (AI)
industry is positive. The company looks forward to and the Internet of Things (IoT). These technologies
implement strategic initiatives to solidify and enhance are being used to develop smarter and more
its market presence. With a global trend pushing for connected machine tools that can operate more
healthier life choices, the company is in the process of efficiently and autonomously.
diversifying its product range to include options that
are both health-centric and convenience-oriented, In India, the machine tools industry is also poised for a
such as probiotic drinks, high-protein yogurts and steady growth which is evident from the government’s
lactose-free products. Make in India initiative, push for Atma Nirbhar Bharat

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and various PLI schemes. These initiatives are directed Acknowledgement

towards boosting domestic manufacturing and giving I take this opportunity to express my sincere gratitude
necessary support to domestic manufacturers. With to the Hon’ble Minister for Heavy Industries and Steel,
the advent of newer technologies and demand for hi- Hon’ble Minister of State for Heavy Industries & Steel,
tech machineries, the sector is witnessing a serious the Secretary (Heavy Industries), Additional Secretary
influx of investment in research and development by & Financial Adviser, the Joint Secretary, Economic
Indian machine tools companies. Adviser and other Officers in the Ministry of Heavy
The future of the machine tools industry is promising Industries as well as the Ministry of External Affairs
and HMT Machine Tools Limited is pursuing to tap the for their immense support and guidance rendered
demand for machine tools. The company continues towards the Company. I am also grateful to the
to work on developing indigenous substitutes for officers in the Ministry of Finance, the Comptroller &
imported machines and make significant contributions Auditor General of India, the Statutory Auditors etc.,
to the Indian manufacturing scene. The Indian for all their support for the smooth operations of the
government hopes to have 25% of the economy’s Company. I sincerely thank the State Governments
output from manufacturing by 2025 and HMT can be concerned, Joint working Partners, Suppliers, Banks
a name to reckon with in the industry. and Financial Institutions for their valuable assistance
Export Business
and support.
The Company is gearing up to increase its revenues I would also like to express my sincere gratitude
in the coming years by taking up export of HMT’s and appreciation to my esteemed colleagues on
products and other engineering goods to newer the Board and to all HMTians, for their unswerving
destinations and to take up more turnkey projects commitment, confidence and continued support for
in underdeveloped and developing countries. maintaining cordial relations during the extremely
HMT(I)’s pending orders stands at Rs. 24 crores as on challenging year.
30.06.2024. I express my thanks to all our esteemed customers
Corporate Governance
in India and abroad for their continued support and
patronage and assure them of our commitment to
The Company strives constantly in adopting meet their expectations.
and maintaining the highest standards of values
and principles. The Company is complying with I also thank all the other stakeholders for their
Government Guidelines on Corporate Governance valuable support, co-operation and for reposing
framed by Department of Public Enterprises for continued confidence in the Company’s performance.
CPSEs. I am confident that with dedicated and committed
resource of employees and valuable support of our
The Company will continue to strive for a consistent esteemed shareholders, our Company will deliver its
growth rate to match the expectations of stakeholders. responsibilities and enhance value to its stakeholders.
While the company is committed to accelerate
growth, it will persevere to achieve best standards of I thank you all for the continued faith in HMT and its
Corporate Governance and Ethical Business Practices management. I greet you and your family members
with emphasis on transparency, accountability and and wish you all the best!
professionalism in working, with the aim of enhancing (Rajesh Kohli)
long term economic value to all stakeholders and Chairman & Managing Director
society at large. Addl. Charge
Bengaluru
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This does not purport to be a record of the proceedings of the 71st Annual General Meeting of the Company.

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 Annual Report 2023 - 24

HMT LIMITED

CONTENTS
Board of Directors.....................................................................................................................1

Performance Highlights.............................................................................................................2

Directors’ Report........................................................................................................................3

Management Discussions and Analysis..................................................................................20

Report on Corporate Governance...........................................................................................24

Secretarial Audit Report..........................................................................................................52

CEO & CFO Certificate...........................................................................................................71

Independent Auditor’s Report..................................................................................................73

Comments of C & AG..............................................................................................................94

Significant Accounting Policies................................................................................................95

Balance Sheet.......................................................................................................................105

Profit & Loss Account............................................................................................................107

Cash Flow Statement............................................................................................................109

Notes Forming Part of Standalone Financial Statement....................................................... 113

Consolidated Financial Statement.........................................................................................150

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 Annual Report 2023 - 24

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 Annual Report 2023 - 24

BOARD OF DIRECTORS (As on 25.10.2024)

Shri. Rajesh Kohli Chairman & Managing Director (Addl. Charge)

(w.e.f. 05.04.2024)
Ms. Arti Bhatnagar Government Nominee Director
Dr. Renuka Mishra Government Nominee Director (w.e.f. 23.07.2024)
Ms. Sameena Kohli Director (Finance) (Addl. Charge)
(w.e.f. 10.06.2024)

CHIEF VIGILANCE OFFICER (As on 25.10.2024)

Shri. Vikas Agarwal, ITS (1997) (w.e.f. 01.08.2024)

CHIEF FINANCIAL OFFICER (As on 25.10.2024)

Smt. Aparna R (w.e.f. 10.11.2023)

COMPANY SECRETARY
Shri. Kishor Kumar S

STATUTORY AUDITOR SECRETARIAL AUDITOR

M/s. NSVM & Associates D Venkateswarlu
Chartered Accountants Practicing Company Secretary
No. 63/1, 1st Floor, Above Canara Bank, No.170, 2nd Floor, 2nd Cross, 1st Block,
Railway Parallel Road, Kumara Park West, Koramangala, Bengaluru 560 034
Bengaluru – 560 004

BANKERS
UCO Bank

REGISTERED OFFICE
“HMT BHAVAN”
59, Bellary Road
Bengaluru - 560 032

CORPORATE IDENTIFICATION NUMBER

L29230KA1953GOI000748

REGISTRAR AND SHARE TRANSFER AGENTS

KFin Technologies Ltd
(Previously KFin Technologies Pvt Ltd)
Selenium Building, Tower-B,
Plot No 31 & 32,Financial District,
Nanakramguda, Serilingampally,
Hyderabad, Rangareddy,
Telangana, India – 500032

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 Annual Report 2023 - 24

PERFORMANCE HIGHLIGHTS
(` in lakhs)

2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
OPERATING STATISTICS
Sales 4791 5159 1258 2346 2613 1960 1480 1043 726 6155
Other Income * 5127 4838 6916 6510 4331 3731 1730 1634 10448 3239
Materials 3455 4286 473 1439 1738 1137 818 267 246 3805
Employee Costs 755 734 1012 1101 1375 1003 1194 1026 1106 10334
Other Costs 3893 3441 1730 1422 1010 1065 894 5042 470 2293
Depreciation 211 211 195 202 27 25 25 32 27 367
Earnings before Interest 1747 1504 4685 4888 2806 2595 578 (3728) 9348 (8174)
Interest - 13 850 1730 2 29 212 288 297 1836
Earnings/(Loss) before Tax 1747 1491 3835 3158 2804 2566 366 (4016) 9051 (10010)
Taxation (net off withdrawal/ (695) 785 (1) 409 - - - (1861) - -
refunds)
Discontinued Operations - - - - 22014 (841) (1083) (21794) (10765) -
(Tractors)
Net Earnings 2442 706 3836 2749 24818 1725 (717) (23949) (1714) (10010)
FINANCIAL POSITION
Net Fixed Assets 1206 1352 1117 1251 1393 1616 1723 1956 2229 2481
Current Assets 59742 58962 48648 44239 41552 32000 18983 18832 9345 64225
Current Liabilities & 19238 21045 11244 10896 10966 23981 11878 20950 35387 27723
Provisions
Working Capital 40504 37917 37404 33343 30586 8019 7105 (2117) (26041) 36502
Capital Employed 41710 39269 38521 34594 31979 9635 8828 (161) (23812) 38983
Investments 71978 71978 71978 71978 71978 71978 72042 72029 76425 76425
Borrowings 64172 64172 64172 64172 64172 66206 67155 57948 15094 13846
Preference Share Capital 3686 3686 3686 3686 3686 3686 3686 3686 3686 66000
(PSC)
Net Worth 45878 43393 42666 38714 36099 11721 10029 10234 33833 35562
OTHER STATISTICS
Capital Expenditure 64 151 61 61 2 124 10 13 65 8
Internal Resources 1958 1702 4030 3360 24845 1750 (692) (25778) (1687) (9643)
Generated
Working Capital Turnover 0.12 0.14 0.03 0.07 0.09 0.24 - - - 0.17
Ratio
Current Ratio 3.11 2.8 4.33 4.06 3.79 1.33 1.60 0.90 0.26 2.32
Return on Capital(%) 4.31 3.87 12.82 14.68 13.49 28.11 13.34 - - (18.65)
Employees (Nos) 55 63 66 81 91 101 103 118 128 1421
Per Capita Sales 87.11 81.89 19.06 28.96 28.71 19.41 14.37 8.84 5.67 4.33
* Includes Extra Ordinary & Exceptional Items

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 Annual Report 2023 - 24

DIRECTORS’ REPORT Rs.36.80 Cr.) in the previous year. Auxiliary Business

Division, Bangalore has registered a Production
To (Assembly of Watches) of Rs.7.95 Crore and registered
The Members Sales of Rs.11.86 Crore during the year 2023-24
HMT Limited against Rs.7.25 Crore and Rs.8.04 Crores during the
Bengaluru previous year respectively and sales includes the Sale
Dear Members, of Watches and tractor spare parts.

The Board of Directors take pleasure in presenting the The Profit Before Tax during the year 2023-24 is Rs.
71st Annual Report on the Business & Operations of 17.47 Crore as against Rs.14.91 Crore in the previous
your Company and Annual Accounts of the Company year.
for the year 2023-24 along with the Auditors’ Report. HMT Group along with its Subsidiaries achieved an
The Comments of the Comptroller & Auditor General aggregate production of Rs. 108.46 Crore during the
of India are attached to this Report. year 2023-24. Revenue from operations is reported
Financial Highlights / Performance of the
as Rs.163.39 Crore for the year 2023-24 against
Company (Standalone)
Rs. 203.81 Crore of previous year. HMT Group has
reported a Profit of Rs. 2550.76 Crore in the current
Rs. in Crores year against a loss of Rs.122.90 Crore during the
Particulars 2023-24 2022-23 previous year. The increase in profit during the year
Gross Revenue from Continuing 47.91 51.59 is mainly on account of the waiver of GoI liabilities to
Operations the extent of Rs. 2693.78 Crore and Grant of Rs.837.47
Other Income 51.27 48.38 Crores received from GoI towards payment of Income
Total Income 99.18 99.97 Tax on the waiver of GoI Liabilities consequent to
Profit Before Depreciation and 19.58 17.15
closure of HMT Watches Limited.
Finance Costs
Depreciation 2.11 2.11 FUTURE OUTLOOK
Gross Profit/(Loss) 17.47 15.04
Finance Cost - 0.13 Dairy Processing Equipment Market
Net profit before exceptional Items 17.47 14.91 The dairy industry in India has grown in size and has
Add: Exceptional Items - - reached INR 16,792.1 billion in 2023. IMARC Group
Net Profit before Tax 17.47 14.91 expects the market to reach INR 49,953.5 billion by
Provision for Tax (6.95) 7.85
2032, exhibiting a growth rate (CAGR) of 13% during
Net Profit After Tax 24.42 7.06
2024-2032. The industry is experiencing robust
Profit/Loss from discontinued - -
operations
growth, propelled by technological innovation,
Net Profit/(Loss) for the year 24.42 7.06 enhanced retail and e-commerce platforms, and
Other Comprehensive Income 0.43 0.21 improved cold chain infrastructure, meeting rising
Total Comprehensive Income 24.85 7.27 consumer demand with a diversified and quality-
focused product range.
OPERATING RESULTS
The company’s main business portfolios included a However, according to a report by Expert Market
product range of Food Processing Machines. The Food Research, the Indian dairy market size reached a
Processing Unit recorded a Production of Rs.8.31 value of approximately USD 203.3 billion in 2023. The
Crore as against Rs. 7.00 Crore in the previous year, Indian dairy market is expected to grow further at a
and Sales of Rs. 36.05 Crore (including Revenue from CAGR of around 15.4% in the forecast period of 2024-
Powder Project Rs.26.80 Cr.) compared to Rs.43.55 2032, reaching a value of USD 472.7 billion by 2032.
Crore (including Revenue from Powder Project

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 Annual Report 2023 - 24

India is the largest milk-producing country in the is further providing growth opportunities to these
world, and the demand for dairy products is expected manufacturers to expand their consumer base in the
to increase in the future due to population growth, country.
rising incomes, and changing dietary habits.
SHARE CAPITAL
The government of India has also implemented The Authorized Equity Share Capital of the Company
several initiatives to support the dairy industry, such is Rs.1230 Crore and paid-up Equity Share Capital is
as promoting the use of modern machinery, providing Rs. 355.60 Crore (355601640 Equity Shares of Rs.10/-
subsidies to farmers for purchasing dairy equipment, each fully paid up).
and establishing milk processing plants.
DEPOSITS
The dairy machinery industry in India is also
adopting new technologies to improve efficiency The Company has not accepted any deposits from the
and productivity. For example, automated milking public and hence there is no violation of Chapter V of
systems, advanced milk processing technologies, and the Companies Act 2013, and the corresponding rules
IoT-based monitoring systems are being introduced made thereunder.
to optimize the production process and reduce costs. DIVIDEND
Moreover, the Indian dairy industry is also becoming In view of the operating conditions of the Company,
more organized with the emergence of large dairy the Board has decided not to propose any dividend
companies and cooperatives. These companies are to the Shareholders. Dividend Distribution Policy is
investing in modern machinery and equipment to available at link https://www.hmtindia.com/policies/.
improve their processing capacity and meet the
growing demand for dairy products. DISCLOSURE AS PER THE SEXUAL HARASSMENT
OF WOMEN AT WORKPLACE (PREVENTION,
In conclusion, the future outlook of the dairy PROHIBITION AND REDRESSAL) ACT, 2013
machinery industry in India looks promising, driven
During the Financial year 2023-24, the Company has
by increasing demand for dairy products, government
not received any complaints of Sexual Harassment
support, adoption of new technologies, and the
and hence no cases are pending.
emergence of organized players in the industry.
FRAUD REPORTING
Machine Tools Market:
There was no incident of fraud reported during the
According to IMARC group, the Indian Machine Tool
year under review.
market size reached USD 1.5 Billion in 2023 and is
expected to reach USD 3.2 Billion by 2032, exhibiting CORPORATE SOCIAL RESPONSIBILITY (CSR)
a growth rate (CAGR) of 8.2% during 2024-32.
The Board level CSR Committee was constituted
Rising industrial automation to increase the overall on 12th August 2019. The composition of the CSR
productivity and improve the ergonomics represents Committee is provided in the Corporate Governance
one of the significant factors stimulating the market Report. The CSR policy is placed on the website of the
growth in India. Apart from this, an increase in the Company at https://www.hmtindia.com/policies/.
number of small and medium-sized enterprises
The average net profits of the Company during
(SMEs), along with stringent evaluation criteria on
the three immediately preceding financial years is
product quality, is bolstering the market growth.
Rs.2827.72 Lakhs, as such, the Company is required
Furthermore, due to lower labor and raw materials
to spend at least two per cent of Rs.2827.72 Lakhs,
costs and reduced tax rates, several foreign companies
i.e., Rs.56.55 Lakhs on CSR activities during the
are setting up their manufacturing bases in India. This

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 Annual Report 2023 - 24

FY2023-24 as per the provisions of section 135 (5) of Subsidiary reported Profit Before Tax (PBT) of Rs. 4.81
the Companies Act, 2013. Crore against Rs. 0.31 Crore reported in previous year.
The CSR Annual report for FY 2023-24 is provided SUBSIDIARY COMPANY UNDER CLOSURE
as Annexure-1 in the format prescribed in the
As per the Cabinet Committee of Economic Affairs
Companies (Corporate Social Responsibility Policy)
(CCEA) decision during the year 2016, the operation
Rules, 2014 and amendments. Details of the CSR
of HMT Watches Limited, wholly owned Subsidiary
activities undertaken during FY2023-24 are enclosed
Company, has been closed.
as Annexure-1A.
During FY2023-24, there are no operating sales
ENTERPRISE RISK MANAGEMENT
or income as closure activities under process. The
In terms of section 134 (3) (n) of the Companies Company received Grant from Government of India
Act, 2013 & the SEBI (LODR) Regulations 2015, the amounting to Rs 837.47 Crore towards the payment
Company has formulated a “Risk Management Policy” of income tax on the waiver of GOI liability of Rs.
which is placed on the Company’s website https:// 2693.78 Crore. Hence, there is an exceptional income
www.hmtindia.com/policies/. of Rs. 3531.25 Crore and reported Profit after Tax of
Rs. 2680.78 Crore.
The Board of Directors of the Company constituted
the Risk Management Committee of the Board on ASSOCIATE /JOINT VENTURE COMPANY
12.07.2021. The composition of the Risk Management
SUDMO-HMT Process Engineers (India) Limited
Committee is provided in the Corporate Governance
Report. The Joint Venture Company could not transact any
business during the year under review. For the
PARTICULARS OF EMPLOYEES Financial Year 2023-24, this company incurred Net
No employees of the Company received remuneration Loss of Rs.1.14 lakhs
in excess of the limits prescribed under Section 197
Gujarat State Machine Tools Corporation
read with Rule 5 of the Companies (Appointment and
Limited (GSMTC)
Remuneration of Managerial Personnel) Rules, 2014
during the Financial Year 2023-24. This Associate Company between HMT Limited and
GIIC Limited discontinued its operations since long.
SUBSIDIARY COMPANIES Now, the Board of Directors of GIIC Limited has
HMT Machine Tools Limited approved for liquidation of GSMTC which will be
subject to approval from Government of Gujarat. The
The Subsidiary achieved Sales of Rs.99.70 Crore
Board of Directors of the Company has also approved
during 2023-24 against Rs. 142.24 Crore in the
in-principle for Liquidation of GSMTC subject to the
previous year and registered Production of Rs.92.20
approval of the Administrative Ministry. Matter is
Crore as against Rs. 116.58 Crore in the previous year.
under process.
Net loss reported is Rs. 155.24 Crore during the year
2023-24 against reported loss of Rs. 131.65 Crore in Salient features of the financial statement of
the previous year. subsidiaries/associate companies/joint ventures are
provided in Form AOC-1 as Annexure -2.
HMT (International) Limited
The Subsidiary achieved a turnover of Rs. 17.59 INDIAN ACCOUNTING STANDARDS
Crore during the year 2023-24 as against Rs.14.15 The Financial Statements have been prepared
Crore recorded in the previous year 2022-23. The to comply in all material aspects with the Indian

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 Annual Report 2023 - 24

Accounting Standards (“Ind AS”) notified under The annual accounts and other information of each
section 133 of the Companies Act, 2013 read with of the subsidiary companies will be available for
Companies (Indian Accounting Standard) Rules, 2015 inspection by any member at the registered office
and relevant amendment rules issued thereafter, as of the Company & on the company’s website www.
applicable to the Company and other provisions of hmtindia.com.
the Act.
HUMAN CAPITAL
REDUCTION IN SHARE CAPITAL
The employee strength of the Company (HMT Limited)
Hon’ble National Company Law Tribunal (NCLT) as on March 31, 2024, stood at 55 Nos. comprising
vide its Order dated 16.10.2018 has confirmed/ of various categories of employees in manufacturing
approved reduction in share capital of the Company plants and other offices.
from Rs.1204.09 Crores to Rs.355.60 Crores by
reduction of 848490000 Equity Shares of Rs.10/- The number of employees on the rolls of the Company
each held by President of India (as per the Cabinet as on March 31, 2024 in SC/ST, Ex-servicemen,
Approval). Registrar of Companies, Karnataka (ROC) Physically Handicapped and Women Employee
has registered the NCLT order on 17.11.2018 and issued Categories etc. is detailed below:
“Certificate of Registration confirming the Reduction Scheduled Castes 12
of Share Capital of HMT Ltd”. However, the process Scheduled Tribes 04
of reduction of share capital in the records of Stock Other Backward Classes 10
Exchanges and Depositories is pending for procedural Ex-Servicemen 0
compliances which are under process in consultation Persons with Disabilities 0
with Registrar and Share Transfer Agent (“RTA”). The Women employees 15
shareholding of President of India is 279566626 of Minorities 03
Rs.10/- each, equivalent to 78.62% shareholding in
the Company as against 1128056626 equity share of INDUSTRIAL RELATIONS
Rs.10/- each shown as per RTA records. Hence there The overall Industrial Relations situation in the
is a difference between Paid up Share Capital of the Company during the year remained cordial.
Company as per Audited Financial Statements and
Shareholding Pattern provided by RTA. IMPLEMENTATION OF OFFICIAL LANGUAGE
Continuous efforts are being made by the Company
CONSOLIDATED FINANCIAL STATEMENTS
towards implementation of the Official Language Act,
As required under the Companies Act 2013 and SEBI Rules & Policy as per the directives of the Government
(LODR) Regulation, 2015, Consolidated Financial to enhance the levels of usage of Official Language in
Statements of the Company along with that of the Company. An Official Language Implementation
the Subsidiaries for the financial year 2023-24, Committee has been constituted in the Units of the
conforming to the applicable Accounting Standards, Company and its Subsidiaries, including the Corporate
are attached to this Report along with the Auditors’ Office at Bengaluru to monitor the implementation
Report on the same. of the Official Language Act, Rules and Policy in the
Company and its Subsidiaries. In order to propagate
The financial information of each of the subsidiary
the usage of Hindi as the Official Language, “HINDI
companies has been furnished as part of the
DIWAS/HINDI WEEK” was observed during the month
Consolidated Balance Sheet of the Company. Separate
of September 2023 at all units of the Company.
audited accounts of the subsidiary Companies will
Various competitions in Hindi such as Chitrarath,
be made available upon request by any member
Impromptu Speech, Official Language Written Quiz,
of the Company interested in obtaining the same.
and Vividha competition were organized during

6
 Annual Report 2023 - 24

Hindi Week for the employees of HMT Limited and Violations of rules and procedures observed during
its Subsidiaries working at the Corporate Head the inspection of files by CVO/DCVO/Unit VOs were
Office and participants were awarded prizes during recorded and depending upon the seriousness of the
the Grand Hindi Day celebration in the Company. deviations further actions are taken. Unit Vigilance
A workshop was also organized during the above Officers are advised to discuss deviations noticed by
period for Hindi Typing. The Hindi Word of the day is them during their inspection; in the quarterly Vigilance
displayed in a prominent place in the Company and Workshop and advice the concerned officers that the
Hindi Newspapers are being procured on a daily basis violations of rules and procedures pointed out by the
to propagate the usage of the official Language among Vigilance Department should not be repeated.
employees. The Officers/ employees of the Company HMT Vigilance Manual was released on 30.03.2023
regularly take part in the meetings/ programs, Online by Ms. Kalyani Sethuraman, IRAS (94) CVO-HMTL.
webinars, and Hindi Month Celebration of the Town
Official Language Implementation Committee (TOLIC) Vigilance Awareness Week (VAW) 2023, Preventive
and also attended the Meeting of “HINDI SALAHAKAR Vigilance Measures cum housekeeping activities was
SAMITI” held in Mussoorie. campaigned for 3 months from 16th Aug 2023 to 15th
Nov 2023 as a precursor to VAW with the theme “Say
VIGILANCE ACTIVITIES No to Corruption; Commit to Nation” “Ye´äe®eej keÀe efJejesOe
The Chief Vigilance Officer appointed by the keÀjW' ; jeä^ kesÀ he´efle mecee|hele jnW ” was observed in all Units and
government of India heads the Corporate Vigilance Offices of HMT Limited and Subsidiary Companies as
Department of the Company. Ministry of Heavy per the guidelines of CVC.
Industry vide its order No. 5(47)/2010-P.E.X dated Emphasis was laid on preventive vigilance by striving
25.04.2022 has assigned the charge of CVO, HMT towards strict adherence to all rules and procedures
Limited to Ms. Kalyani Sethuraman, IRAS (94), CVO, and all norms of transparency in tendering process.
Hindustan Aeronautics Ltd. (HAL), Bengaluru for Some of the systems improvement suggested are:
a further period of one-year w.e.f. 04.04.2023 to
03.04.2024 or till the appointment of a regular CVO 1. Suggested online filling of APAR of the officials.
or until further order, whichever is earlier.
2. Suggested online filling of property returns of
The Corporate Vigilance Department carries out the officials
vigilance function in the Holding Company as well
as Subsidiary Companies. Vigilance function in the 3. Proposed to update HMT Purchase manual.
manufacturing Units and Marketing Offices are 4. Digitalization of Old drawings, Record of Land,
looked after by Vigilance Officers, under the guidance HR documents.
of Chief Vigilance Officer.
All the Unit Vigilance Officers send their monthly 5. Online transaction for making payments and
Vigilance/Inspection Reports and Surprise Inspection receipt of payment.
reports to CVO. Reports so received are scrutinized at 6. Maximizing procurement through GeM Portal.
CVO Office for further action. Unit Vigilance Officers
also verify Annual Property Returns submitted by the 7. Suggested Periodic inspection on Audit Report
employees of the Unit. (Finance).

Apart from regular inspections by Unit Vigilance 8. Management is being persuaded to adopt
Officers, CVO conducts CTE (Chief Technical Examiner Integrity Pact. The matter was taken up in the
at CVC) type surprise and regular inspections of high 326th meeting of Board of Directors of HMTL
value purchase/contracts and systems by visiting held on 8.6.2017 and the decision of the board
various subsidiaries and Units. was “Adoption of Integrity pact in HMT Limited

7
 Annual Report 2023 - 24

and subsidiary companies and authorized • that such accounting policies have been selected
the Chairman and Managing Director of the and applied consistently and judgments and
company to decide the basis for adoption of estimates have been made that are reasonable
integrity pact and to do necessary acts and and prudent so as to give a true and fair view of
things as may be required for implementation the state of affairs of the Company at the end of
of integrity pact and to inform the Board” the financial year and of the profit and loss of the
Company for the year ended on that date;
9. Recommended Allotment of township quarters
to be made online. • that proper and sufficient care has been taken
for the maintenance of adequate accounting
10. Suggested more awareness initiatives (Training, records in accordance with the provisions of the
Workshop etc.) on Vigilance to fight corruption Companies Act, 2013 for safeguarding the assets
in the organization. of the Company and for preventing and detecting
MANAGEMENT DISCUSSION AND ANALYSIS fraud and other irregularities;
A Report on Management Discussion and Analysis is • that the annual financial statements have been
appended to this Report separately as Annexure-3. prepared on a going concern basis;
CORPORATE GOVERNANCE • that proper internal financial controls were in
place and are adequate and were operating
Pursuant to Regulation 34 of the SEBI (LODR)
effectively;
Regulation, 2015, a Report on Corporate Governance
is appended as Annexure-4 to this Report along • that proper systems to ensure compliance with
with the Compliance Certificate from the Auditor as the provisions of all applicable laws were in place
Annexure-5. and were adequate and operating effectively;
INFORMATION REGARDING CONSERVATION ANNUAL RETURN
OF ENERGY, TECHNOLOGY ABSORPTION
Pursuant to Section 92(3) and Section 134(3)(a) of
AND FOREIGN EXCHANGE EARNINGS AND
the Companies Act, 2013, the Company has placed a
OUTGO
copy of the Annual Return as on March 31, 2024 on
Particulars in respect of conservation of energy, its website at https://www.hmtindia.com/investor-
technology absorption and foreign exchange earnings relation/ar/.
and outgo, as required under the Companies
(Accounts) Rules, 2014 are appended as Annexure-6 AUDITORS
M/s. N S V M & Associates, Chartered Accountants,
DIRECTORS RESPONSIBILITY STATEMENT
Bengaluru were appointed as Statutory Auditors of
To the best of their knowledge and belief and according the Company for the year 2023-24 by the Comptroller
to the information and explanations obtained by & Auditor General of India. M/s. R K Muley & Co.,
them, your Directors make the following statements Chartered Accountants, was also appointed as Branch
in terms of Section 134(3)(C) of the Companies Act, Auditor for the Food Processing Machinery Division,
2013: Aurangabad of the Company.
• that in the preparation of the annual financial Replies to the observations by the Statutory Auditors
statements for the year ended 31.03.2024, in their Report are given as Annexure-7.
the applicable accounting standards has been
followed along with proper explanation relating Replies to the Comments of the Comptroller & Auditor
to material departures; General of India are given as Annexure-7A.

8
 Annual Report 2023 - 24

SECRETARIAL AUDIT REPORT BOARD OF DIRECTORS AND KEY MANAGERIAL

PERSONNEL
In terms of Section 204 of the Companies Act 2013
and the rules made thereunder, the Company has Being a Government Company, the appointment
appointed Shri. D. Venkateswarlu, Practicing Company and fixation of terms and conditions of all Directors
Secretary, to undertake the Secretarial Audit of the (including tenure & remuneration of Functional
Company for the year 2023-24. The report of the Directors) are made by the Government of India.
Secretarial Auditor is appended as Annexure-8 to
this report. The replies to observations of Secretarial The appointment/ remuneration in respect of KMPs
Auditor are attached as Annexure-9. and Senior Management Personnel are governed by
the policies covered in HMT’s personnel manual in
SECRETARIAL AUDIT REPORT OF UNLISTED line with DPE guidelines.
MATERIAL SUBSIDIARY
The following changes have taken place in composition
Pursuant to the provisions of Regulation 24A of the Board of Directors / Key Managerial Personnel:
of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Ministry of Heavy Industries vide its order dated 24th
Regulations, 2015, the Secretarial Audit Report for the August 2023 has entrusted the additional charge
Financial Year 2023-24 of HMT Machine Tools Limited of the post of Director (Finance), HMT Limited to
& HMT (International) Limited, an Unlisted Material Ms. Rita Saxena, General Manager (Internal Audit),
Subsidiaries of the Company along with replies to M/s. Bharat Heavy Electricals Limited for a period
observations are appended as Annexure-10, 11, 12 & upto 24.05.2024 or till the appointment of a regular
13 to this report. incumbent or till further orders, whichever is the
earliest, subject to the approval of Appointments
BUSINESS RESPONSIBILITY AND SUSTAINABILITY Committee of the Cabinet (ACC). Ms. Rita Saxena (DIN:
REPORT (BRSR) 10294769), Director (Finance) has been inducted on
As per BSE circular no. 20240510-48 & NSE circular the Board of Directors of the Company w.e.f 25th
no. NSE/CML/2024/11 dated: May 10, 2024, the BRSR August, 2023 on her assumption of charge.
can be provided as a LINK in the Annual Report of the Ms. Mukta Shekhar (DIN: 10118859), Joint Secretary,
Company instead of publishing the whole report. As Ministry of Heavy Industries was appointed as
such the BRSR 2023-24 can be accessed from the Government Nominee Director on the Board of HMT
link www.hmtindia.com/business-responsibility-and- Limited with effect from 4th September 2023, until
sustainability-report/. further orders vice Dr. Renuka Mishra, Economic
EVALUATION OF THE PERFORMANCE OF BOARD Advisor, Ministry of Heavy Industries.
Being a Government Company, HMT is exempted in The Board of Directors of the Company has designated
terms of the MCA Notifications dated June 5, 2015 & Smt. Aparna R., Manager (F&A) as the Chief Financial
July 5, 2017, from the evaluation of performance of all Officer (CFO) of the Company w.e.f 10th November
members of the Board of the Company which is being 2023 until further orders, in place of Smt. Kamna
done by the Administrative Ministry i.e., the Ministry Mehta, Deputy Manager (CF) in view of organizational
of Heavy Industries and/or by the Department of changes.
Public Enterprises (DPE).
Shri. Pankaj Gupta (DIN: 09716028), Executive
BOARD MEETINGS Director, M/s Bharat Heavy Electricals Limited, ceases
During the financial year, Six Board Meetings were to be Chairman & Managing Director (Additional
held and the details are given in the Corporate Charge) HMT Limited, on completion of term on 24th
Governance Report. November 2023.

9
 Annual Report 2023 - 24

Ministry of Heavy Industries vide its order dated 29th regular incumbent, or until further orders, whichever
December 2023 has entrusted the additional charge is earliest, subject to the ex-post facto approval of
of the post of Chairman & Managing Director of HMT the Appointments Committee of the Cabinet (ACC).
Limited to Shri. Rajeev Singh, Executive Director, Accordingly, Shri. Rajesh Kohli (DIN:10333951) has
Bharat Heavy Electricals Limited, upto 24.11.2024, or been inducted as Chairman & Managing Director
till the joining of a regular incumbent, or until further (Additional Charge) on the Board of Directors of the
orders, whichever is earliest, subject to the approval Company w.e.f 5th April, 2024 (A/N) on his assumption
of the Appointments Committee of the Cabinet of charge in place of Shri. K Ravishankar.
(ACC). Shri. Rajeev Singh, (DIN: 10447679) Chairman
& Managing Director (Additional Charge) has been Ms. Rita Saxena (DIN: 10294769), General Manager
inducted on the Board of Directors of the Company (Internal Audit), M/s Bharat Heavy Electricals Limited,
w.e.f 30th December, 2023 on his assumption of ceases to be Director (Finance) (Additional Charge),
charge. HMT Limited, on completion of term from 25th May,
2024.
Ministry of Heavy Industries vide its order dated 4th
March, 2024 has entrusted the additional charge of Ministry of Heavy Industries vide its order dated 7th
the post of Chairman & Managing Director of HMT June, 2024 has entrusted the additional charge of the
Limited to Shri. K Ravishankar, Executive Director, post of Director (Finance), HMT Limited, Bengaluru
Bharat Heavy Electricals Limited in place of Shri. to Smt. Sameena Kohli, General Manager (Finance-
Rajeev Singh, Executive Director, Bharat Heavy SBD & ISG), BHEL, Bengaluru for a period of one year
Electricals Limited, with immediate effect and from or till the joining of regular incumbent to the post
the date of his assumption of charge of the post till or until further order, whichever is earliest, subject
24.08.2024 i.e., date of his superannuation or till to the approval of Appointment Committee of
the joining of a regular incumbent or until further Cabinet (ACC). Accordingly, Smt. Sameena Kohli (DIN:
orders whichever is earliest, subject to ex-post facto 10663362) has been inducted as Director (Finance),
approval of Appointments Committee of the Cabinet (Additional Charge) on the Board of Directors of the
(ACC). Shri. K. Ravishankar (DIN: 10540509), Chairman Company w.e.f 10th June, 2024 on her assumption of
& Managing Director (Additional Charge) has been charge.
inducted on the Board of Directors of the Company Ministry of Heavy Industries vide its order dated 23rd
w.e.f 08th March, 2024 (A/N) on his assumption of July, 2024 has appointed Dr. Renuka Mishra, Economic
charge. Adviser, Ministry of Heavy Industries as Government
Except as stated above, there are no other changes Nominee Director on the Board of HMT Limited
to the composition of Board of Directors / Key with immediate effect and until further orders, vice
Managerial Personnel of the Company during the Ms. Mukta Shekhar, ex-Joint Secretary, Ministry of
financial year. Heavy Industries. Accordingly, Dr. Renuka Mishra
(DIN: 08635835) has been inducted as Government
Ministry of Heavy Industries vide its order dated 26th Nominee Director on the Board of Directors of the
March, 2024 has entrusted the additional charge of Company w.e.f 23rd July, 2024.
the post of Chairman & Managing Director of HMT
Limited to Shri. Rajesh Kohli, Executive Director, Shri. Rajesh Kohli (DIN: 10333951), Dr. Renuka Mishra
Bharat Heavy Electricals Limited (BHEL), in place (DIN: 08635835) and Smt. Sameena Kohli (DIN:
of Shri. K. Ravishankar, Executive Director, Bharat 10663362) are proposed for appointment as Director
Heavy Electricals Limited, with immediate effect and in terms of Article 67(4) of the Article of Association of
from the date of his assumption of charge of the the Company read with Section 160 of the Companies
posts, for a period of one year or till the joining of a Act, 2013 in the ensuing Annual General Meeting.

10
 Annual Report 2023 - 24

The Nomination and Remuneration Committee has RELATED PARTY TRANSACTIONS

recommended their appointments. The details of related party transactions are given in
Ms. Arti Bhatnagar, Director retires by rotation at the notes to the Financial Statements.
the ensuing Annual General Meeting and being All Related Party Transactions entered into during
eligible, offers herself for reappointment. The Board the year were in Ordinary Course of the Business
recommends her re-appointment. and at Arm’s Length basis. No Material Related Party
Shri. K. Ravishankar, Chairman and Managing Director Transactions, i.e., transactions exceeding 10% of the
(Additional Charge), Smt. Aparna R., Chief Financial annual consolidated turnover as per the last audited
Officer and Shri. Kishor Kumar S, Company Secretary financial statement, were entered into during the
are the Key Managerial Personnel’s (KMP’s) as defined year by your Company. Accordingly, the disclosure of
under Section 2 (51) of the Companies Act, 2013 as Related Party Transactions as required under Section
on 31.03.2024. 134(3)(h) of the Companies Act, 2013, in Form AOC-2
is not applicable.
DECLARATION FROM INDEPENDENT DIRECTOR
PARTICULARS OF LOANS, GUARANTEES &
& REGISTRATION IN THE DATA BANK
INVESTMENTS
MAINTAINED BY IICA
During FY2023-24, there were no instances of providing
During FY2023-24, there were no Independent Guarantees and making Investments covered under
Directors on the Board of the Company, hence the provisions of Section 186 of the Companies Act,
declaration from Independent Directors & registration 2013. Details of Loans covered under the provisions
in the data bank maintained by IICA is not applicable of Section 186 of the Companies Act, 2013 are given
to the Company. in the notes to the Financial Statements.
CODE OF CONDUCT DETAILS OF DIFFERENCE BETWEEN AMOUNT
A declaration by the Chairman & Managing Director OF THE VALUATION DONE AT THE TIME OF
(Additional Charge) for having obtained affirmation ONE TIME SETTLEMENT AND THE VALUATION
of compliance of the Code of Conduct by the Board DONE WHILE TAKING LOAN FROM THE BANKS
Member (s) and Senior Management for the year OR FINANCIAL INSTITUTIONS ALONG WITH
ended on March 31, 2024 is appended to this report THE REASONS THEREOF
as Annexure-14. There are no instances of one-time settlement during
INTERNAL FINANCIAL CONTROLS the financial year 2023-24.
With reference to financial statements, the Company STATUS ON COMPLIANCE WITH THE
has in place adequate internal financial controls. INSOLVENCY AND BANKRUPTCY CODE, 2016
A detailed note with respect to Internal Financial
controls is given in the Management Discussion and There are no applications made or any proceeding
Analysis Report. pending against the Company under Insolvency
and Bankruptcy Code, 2016 (31 of 2016) during the
EVENTS SUBSEQUENT TO THE DATE OF financial year 2023-24.
FINANCIAL STATEMENTS
OTHER DISCLOSURES
There are no Material changes and commitments
affecting the financial position of the company which The Register of Members and Share Transfer records
occurred between 31st March 2024 and date of both in respect of the shares held in physical and
signing of this Report. depository form are maintained by M/s. KFin

11
 Annual Report 2023 - 24

Technologies Limited, the Registrars & Share Transfer ACKNOWLEDGEMENTS

Agents of the Company. Your Directors gratefully acknowledge and are
No significant and material orders have been thankful to the various Departments and Ministries
passed by any Regulator(s) or Court(s) or Tribunal(s) in the Government of India, particularly the Ministry
impacting the going concern status and Company’s of Heavy Industries, Ministry of Corporate Affairs,
operations in future. Comptroller and Auditor General of India, Principal
Director-Commercial Audit, Statutory and Branch
As on 31st March 2024, no amount is required to Auditors, various State Governments, Foreign
be transferred to Investor Education and Protection Collaborators, the Subsidiary Companies, Suppliers,
Fund (IEPF). Reserve Bank of India, UCO Bank and the valued
Customers of the Company both in India and abroad
During FY2023-24, maintenance of cost records as
for their continued co-operation and patronage.
specified by the Central Government under sub-
section (1) of section 148 of the Companies Act, Your Directors would also like to take this opportunity
2013 is applicable to the Company. Accordingly, such to express their appreciation for the hard work and
records have been made and maintained by the sincere contributions and commitment of all the
Company. HMT employees and look forward to their continued
services in pursuit of building a world class HMT.

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

12
 Annual Report 2023 - 24

Annexure - 1
ANNUAL REPORT ON CSR ACTIVITIES

1. Brief Outline on CSR Policy of the Company: Main Features of the Policy
CSR Vision: To contribute the sustainable a) This policy broadly covers all relevant clause(s)/
development and inclusive growth while taking sections of the Companies Act, 2013, the
care of people, planet and organizational goals Companies Amendment Rules, 2014 and the
/ growth. DPE Guidelines.
CSR Mission b) This Policy relates to the activities to be
undertaken by the Company as specified in
a) To become socially responsible corporate Schedule VII of the Companies Act and the
entity committed to improving the quality expenditure thereon, excluding activities
of life of the society at large. undertaken in pursuance of normal course of
b) To create and develop facilities for the business of the Company.
communities we engage with. c) The CSR projects or programs or activities that
c) To balance economic, environmental benefit only the employees of the company and
and welfare development objectives their families shall not be considered as CSR
through collective and unified effort of all activities in accordance with section 135 of the
stakeholders. Act.

Objective: The policy is framed with the objective(s) d) The CSR and Sustainability budget expenditure
stated herein below: shall be fixed in accordance with the provisions
of the Act, Rules and the Guidelines.
a) To provide framework for carrying out the CSR
projects or programs or activities including e) The Company will endeavor at all times to build
the modalities of execution and transparent and develop the skills of its CSR team and enhance
monitoring mechanism for its implementation level of CSR awareness within the organization.
undertaken by the Company which is within the f) Execution of CSR projects can be taken up
scope of the Companies Act 2013 and the rules generally by in-house teams or through suitable
made therein; the DPE Guidelines, as amended partnerships with State Governments, PSUs,
from time to time; NGOs, Private Companies. As far as possible,
b) To create awareness on CSR practices across all HMT’s manpower should be committed only for
the levels in the Company, operate its business monitoring and supervision.
in an economically, socially & environmentally g) To assist and take up CSR activities forward, the
sustainable manner, while recognizing the Corporate CSR Committee & Unit CSR Committee
interests of all its stakeholders. (on need basis) has been constituted.
c) Through its CSR Initiatives, generate community
goodwill and help reinforce a positive & socially
responsible image for HMT.

13
 Annual Report 2023 - 24

2. Composition of CSR Committee:

Number of meetings
Number of meetings
Sl. Designation / Nature of of CSR Committee
Name of Director of CSR Committee held
No. Directorship attended during the
during the year
year
1 Shri. Krishnaswami Chairman / Chairman & Managing - -
Ravishankar1 Director (Addl. Charge)
2 Shri. Rajeev Singh2 Chairman / Chairman & Managing 1 1
Director (Addl. Charge)
3 Ms. Arti Bhatnagar3 Member / Govt. Nominee Director 1 1
4 Shri. Pankaj Gupta4 Chairman / Chairman & Managing 2 2
Director (Addl. Charge)
5 Ms. Mukta Shekhar5 Member / Govt. Nominee Director 1 1
6 Dr. Renuka Mishra6 Member / Govt. Nominee Director 2 2
7 Ms. Rita Saxena7 Member / Director (Finance) (Addl. 2 2
Charge)
1. Appointed as Chairman w.e.f. 08.03.2024
2. Appointed as Chairman w.e.f. 30.12.2023 and Ceased to be Chairman w.e.f. 08.03.2024
3. Ceased to be Member w.e.f. 25.08.2023, Appointed as Chairman w.e.f. 25.11.2023 and Ceased to be Chairman w.e.f. 30.12.2023
4. Ceased to be Chairman w.e.f. 24.11.2023
5. Appointed as Member w.e.f. 04.09.2023
6. Ceased to be Member w.e.f. 04.09.2023
7. Appointed as Member w.e.f. 25.08.2023

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects
approved by the board are disclosed on the website of the company.
Committee Composition: https://www.hmtindia.com/investor-relation/share-holder-information/
CSR Policy: https://www.hmtindia.com/policies/
CSR Projects: https://www.hmtindia.com/investor-relation/share-holder-information/
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects
carried out in pursuance of sub-rule (3) of rule 8, if applicable.
Not applicable
5. (a) Average net profit of the company as per sub-section (5) of section 135: Rs. 28,27,72,328/-
(b) Two percent of average net profit of the company as per sub-section (5) of section 135: Rs. 56,55,447/-
(c) Surplus arising out of the CSR projects or programs or activities of the previous financial years: NIL #
# Funds to be spent as part of on-going CSR projects of previous financial years are detailed in Table No.7.
below.
(d) Amount required to be set off for the financial year, if any: NIL
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]: Rs. 56,55,447/-

14
 Annual Report 2023 - 24

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project):
Rs. 56,25,447/-
(b) Amount spent in Administrative Overheads: Rs.30,000/-
(c) Amount spent on Impact Assessment, if applicable: Not Applicable
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs. 56,55,447/-@
@
Total CSR amount earmarked during the reporting FY2023-24.
(e) CSR amount spent or unspent for the Financial Year:

Amount Unspent (in Rs.)

Total Amount
Total Amount transferred to Amount transferred to any fund specified under
Spent for the
Unspent CSR Account as per section 135(6) Schedule VII as per second proviso to section 135(5)
Financial Year
(In Rs) Name of the Date of
Amount Date of transfer Amount
Fund transfer
28,75,447/-* 27,80,000/- 29.04.2024 - - -
*Amount spent pertaining to FY2023-24 as on 31.03.2024.

(f) Excess amount for set-off, if any:

Sl. No. Particular Amount (in Rs.)

(1) (2) (3)
(i) Two percent of average net profit of the company as per sub-section (5) of section 135 56,55,447/-
(ii) Total amount spent for the Financial Year 28,75,447/-
(iii) Excess amount spent for the Financial Year [(ii)-(i)] NIL
(iv) Surplus arising out of the CSR projects or programs or activities of the previous Financial NIL
Years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] NIL

7. Details of Unspent Corporate Social Responsibility amount for the preceding three
Financial Years:
1 2 3 4 5 6 7 8
Balance Amount transferred
Amount
Amount in to a Fund as specified Amount
transferred to
Unspent Amount under Schedule VII as remaining to
Unspent CSR
Preceding CSR Account Spent in the per second proviso be spent in
Sl. Account Deficiency,
Financial under Financial to subsection (5) of succeeding
No. under sub- if any
Year(s) subsection (6) Year (in Rs) section 135, if any Financial
section (6) of
of section 135 ** Years (in Rs)
section 135 (in Date of
(in Rs.) Amount ***
Rs.) Transfer
*
1 2020-21 970000 Nil Nil Nil Nil NIL Nil
2 2021-22 4103000 Nil Nil Nil Nil Nil Nil
3 2022-23 4271260 4271260 4189241 Nil Nil 82019 Nil
* As on 01.04.2023, ** spent in the reporting FY *** After FY2023-24.

15
 Annual Report 2023 - 24

8. Whether any capital assets have been created or acquired through Corporate Social
Responsibility amount spent in the Financial Year: No
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:

Short particulars of the

Pin code Amount
property or asset(s)
of the Date of of CSR Details of entity/ Authority/ beneficiary
Sl. No. [including complete
property or creation amount of the registered owner
address and location of
asset(s) spent
the property]
(1) (2) (3) (4) (5) (6)
CSR
Registration Registered
Name
Number, if address
applicable
N/A

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
subsection (5) of section 135: N/A

Date: 25.10.2024 Rajesh Kohli

{Chairman & Managing Director (Addl. Charge)}
&
(Chairman, CSR Committee)

16
 Annual Report 2023 - 24

Annexure - 1A
DETAILS OF THE CSR ACTIVITIES UNDERTAKEN DURING FY2023-24
(Status of On-going & other than On-going CSR projects)

Sl. CSR Amount Name of the Project Item from Location of Mode of Project
No. allocated the list of the Implementation duration
(In Rs.) activities in project / Date of
Schedule VII Completion
to the Act
1 *2,50,000/- Supply of Blazer/ Item No. II Bangalore, Direct 31.08.2024
Jackets to 115 girls (Education) Karnataka ---
students studying PUC On Going Project
in Karnataka Public completed
School (GoK), Jalahalli,
Bangalore
2 *25,00,000/- Supply of Cardiac Item No. I Aurangabad, Direct 31.10.2024
Ambulance to (Health Care) Maharashtra
Government Medical ---
College & Hospital, On Going Project
Govt. of Maharashtra,
Aurangabad
3 28,75,447/- Contribution to Prime Item No. VIII - Direct 30.03.2024
Minister’s National (Contribution
Relief Fund to the prime
minister’s
national relief
fund)
4 *30,000/- Administrative
Expenses
56,55,447/-
*Balance amount remaining after completion of ongoing CSR projects for the FY2023-24 shall be transferred to any of
the Central Government Fund as prescribed in Point No. VIII of Schedule VII of Companies Act 2013 to ensure completion
of the project for the FY2023-24 and full utilization of CSR amount.

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

17
 Annexure - 2
Form AOC-1

(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amounts Rs in Lakhs)

Sl. No. Particulars Details

1. Sl. No. 01 02 03
2. Name of the subsidiary HMT Machine HMT HMT Watches
Tools Limited (International) Limited
Limited
3. The date since when subsidiary was acquired 09-08-1999 13-12-1974 09-08-1999
4. Reporting period for the subsidiary concerned, if different from the NA NA NA
holding company’s reporting period
5. Reporting currency and Exchange rate as on the last date of the relevant NA NA NA
Financial year in case of foreign subsidiaries

18
6. Share capital 27659.91 72.00 649.01
7. Reserves & surplus (224862.58)# 3709.49 (649.01)
(Accumulated Profit/(Losses)
8. Total assets 31338.53 5862.44 -
9. Total Liabilities 228541.20 2080.95 -
10. Investments - - -
11. Turnover 9969.99 1758.62 -
12. Profit before taxation (15524.17) 481.21 353064.78
13. Provision for taxation - 401.29 84986.12
14. Profit after taxation (15524.17) 79.92 268078.66
15. Proposed Dividend NIL NIL NIL
16. Extent of shareholding (in percentage) 100% 100% 100%
#Includes Capital Reserve of Rs.2270.82 Lakhs
1. Names of subsidiaries which are yet to commence operations - NIL
2. Names of subsidiaries which have been liquidated or sold during the year–NIL
Annual Report 2023 - 24
 Annual Report 2023 - 24

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and
Joint Venture
(Rs in Lakhs)
Details
Sl. Gujarat State Machine Tools SUDMO-HMT Process
Particulars
No. Corporation Ltd Engineers (India) Limited
(Name of Associate) (Name of Joint Ventures)
1 Latest Audited Balance Sheet Date 31.03.2023 31.03.2024
2 Date on which the Associate or Joint 15-02-1975 05-09-1994
Venture was associated or acquired
3 Shares of Associate held by the company on the year end
Nos. 2084050 of Rs. 1/- each 150000 of Rs. 10/- each
Amount of Investment in Associates / Joint 20.84 15.00
Venture
Extent of Holding % 39.86% 50%
4 Description of how there is significant Investment in the equity to the Investment in the equity to the
influence extent of 39.86% paid up capital extent of 50% paid up capital
5 Reason why the associate / joint venture is Accounts of GSMTC are not yet N.A
not Consolidated finalized
6 Networth attributable to Shareholding as Accounts of GSMTC are not yet 18.20
per latest audited Balance Sheet finalized
7 Profit / Loss for the year
i. Considered in Consolidation NIL (0.57)
ii. Not Considered in Consolidation Accounts of GSMTC are not yet N.A
finalized
1. Names of Associates which are yet to commence operations - NIL
2. Names of Associates which have been liquidated during the year – NIL

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

19
 Annual Report 2023 - 24

Annexure - 3
MANAGEMENT DISCUSSIONS AND ANALYSIS
GLOBAL ECONOMIC ENVIRONMENT Growth export market: India is a major exporter of
The future of Global Dairy Processing Equipment dairy products, and the export market is expected to
Market looks promising on account of increase in grow in the coming years. This will create a demand
demand for fresh dairy products due to population for dairy machinery that can meet the standards of
growth, rising incomes and dietary habits. As per international markets.
Markets and Markets report, the global dairy Government support: the Indian government is
processing equipment industry is projected to reach providing support to the dairy industry through
USD 14.4 billion by 2028 from USD 10.7 billion in schemes such as the National Dairy Development
2023 at CAGR of 6.2% during the forecast period Board (NDDB).
2023-2028.
In conclusion, the future outlook of the dairy
INDUSTRY STRUCTURE AND DEVELOPMENT machinery industry in India looks promising, driven
The food processing industry is of great importance as by the increasing demand for dairy products,
it provides linkages between agriculture and industry. government support, adoption of new technologies,
The Government of India has initiated several steps in and the emergence of organized players in the
the past few years to accelerate this sector. industry.
OPPORTUNITIES:
Food processing has become an integral part of the
food supply chain in the global economy, and India Food Processing Machinery Unit, Aurangabad (FPA)
has seen growth in this sector in the last few years. is capable of taking up turnkey projects for setting
up of Dairy Processing Plants up to the capacity of
The India food processing market size reached INR
50,000 liters per day. During the year 2023-24, the
28,027.5 billion in 2023. IMARC Group expects
company has received three orders for setting up of
the market to reach INR 61,327.5 billion by 2032,
Dairy processing plants. Turnkey project for a dairy
exhibiting a growth rate (CAGR) of 8.8% during 2024-
plant at Jorhat, Assam has been completed and
2032.
the second dairy plant at Dibrugarh, Assam is in its
OUTLOOK OF DAIRY MACHINERY INDUSTRY IN final stage of commissioning. Next turnkey project
INDIA for establishment of a Dairy plant at Shikarpur,
Uttarakhand is in process of establishment and is
The dairy machinery industry in India is expected to
expected to be commissioned by 15.12.2024.
grow at a CAGR of 15.4% from 2024-2032. This growth
is being driven by a number of factors, including: CHALLENGE:
Increasing milk production in India: India is the world’s Our dairy machineries are based on the technology
largest milk producer, and milk production is expected achieved through Technical Collaboration with M/s.
to continue to grow in the coming years. This will in Fortschritt Landmaschinen, GDR (East Germany) in
turn create a demand for dairy machinery to process the year 1980. To upgrade the technology to compete
and package the increased milk production. with our competitors another technical collaboration
or a joint working arrangement (JWA) with a reputed
Rising disposable incomes: As incomes rise in India,
agency is required. We are pursuing joint working
people are increasingly able to afford processed dairy
arrangement to absorb the latest technology.
products. This is creating a demand for new and
innovative dairy machinery that can produce high- Due to the lower pay scale, highly qualified and
quality, safe and affordable dairy products. technical engineers are not joining the company.

20
 Annual Report 2023 - 24

Lack of marketing network for product sale and WATCHES

advertisement is also a big reason for low market • Quartz: Very good market for quartz watches
share. Experienced designers and dairy experts are as the price range starts from Rs. 650/- to Rs.
not available for the development of new products. 3500/-.
Due to stiff competition in the market our products
are sold at a very low profit margin. • Hand-wound Mechanical: Well accepted in the
market, but due to unavailability of components,
CONCERNS: production of hand-wound mechanical watches
Volatile input costs: As a highly perishable product is are limited.
being handled, stainless steel is one of the major raw
RESEARCH & DEVELOPMENT
materials for the Dairy Machinery. The cost of stainless
steel has been very volatile in the market due to • The Company is planning to introduce Ladies
various reasons. The projects/contracts undertaken watches in the quartz segment with latest design
by the company are on a fixed-cost basis; however, due at different price ranges.
to the volatility of the raw material prices including
FINANCIAL PERFORMANCE
that of stainless steel, the company is exposed to
the risk of excess expenditure. To overcome this, the The turnover of the Company for the year 2023-24
company at the time of placing bids, consider the was Rs.47.91 crores with net profit of Rs.24.42 Crore.
expected volatility in raw material prices to safeguard
Turnover decreased from Rs.43.55 crores for the
its margins. The typical characteristic of the Dairy
previous year to Rs.36.05 crore during current year
Machinery industry is that it is cyclically associated
in respect of Food Processing Machinery Division,
with Capital goods sector but its fortunes are closely
Aurangabad, which is mainly on account of Revenue
linked to Dairy Industry. Thus, the debtor collection
from Powder project.
period is quite long, in excess of 100 days and also the
operating margin, PBDIT is less ranging from 4 to 5%. The total borrowing (loan) of the Company from
Thus, any slight volatile change in raw material or any Government of India were Rs.641.72 crores as on
other input cost impacts the margin of the company 31.3.2024.
immediately.
RATIO ANALYSIS
RISK AND CONCERNS 2023-24 2022-23
Gaps in the supply chain are perhaps the biggest Trade Receivables Turnover 113 days 125 days
challenge faced by this industry. Pre-processing losses Inventory Turnover 90 days 69 days
occur due to lack of awareness and a dearth of storage Interest Coverage Ratio Nil 956.52
and pack-house facilities close to the production Net Profit Margin (%) 24.63% 7.06%
Return on Net Worth 5.32% 1.63%
vicinity. Preparing inventories for the products pose
big challenge due to highly competitive market and
Trade Receivables Turnover (in days) has decreased
volatility of stainless steel prices.
due to decrease in trade receivables on account of
SEGMENT WISE / PRODUCT WISE PERFORMANCE collections.
FOOD PROCESSING EQUIPMENT Inventory Turnover (in days) has increased due to
• Automatic day-date models: Well received in the an increase in inventory holding and reduction in
market because of the design and aesthetics. turnover due to revenue from powder project.
However, due to cost factor sales are low. No interest on the borrowings during the year and
hence, interest coverage ratio is nil.

21
 Annual Report 2023 - 24

The increase in Net Profit Margin is mainly due to • Compliance with laws and regulations.
increase in Net profit during the year on account of
the reversal of excess income tax provision made The Internal Audit Department of the Company along
during the previous year. with the external firms appointed for carrying out
internal audits of Units / Divisions reviews, evaluates
Increase in return on Net worth is due to increase in and appraises the various systems, procedures /
PAT on account of the reversal of excess income tax policies laid down by the Company and suggests
provision made during the previous year. meaningful and useful improvements.
INTERNAL CONTROL SYSTEMS AND THEIR Internal Audit Department coordinates with the Units
ADEQUACY / Divisions of the company for ensuring coverage of all
The Company has in place adequate systems of areas of operations in order to bring a transparency in
Internal control commensurate with its size and the whole spectrum of the Company.
nature of its operations. The salient features of
The Audit Committee reviews the Audit Report
internal control systems are
submitted by the Internal Auditors. Suggestions
• Clear delegation of power with authority limits for improvement are considered and the Audit
for incurring capital and revenue expenditure. Committee follows up on the implementation of
• Well laid down corporate policies for accounting, corrective actions.
reporting and Corporate Governance. The Audit Committee also meets the Company’s
• Safeguarding assets against unauthorized use statutory Auditors to ascertain, inter-alia, their views
or losses or disposition, and ensuring that the on the adequacy of internal control system in the
transactions are authorized, recorded and Company and keeps the Board of Directors informed
reported correctly. of its major observations from time to time.
• Process for formulating and reviewing annual HUMAN RESOURCES
and long term business plans have been laid
down. As on 31.03.2024, the Company and its Subsidiaries
had a total workforce of 714 employees, comprising
• Detailed Annual budget giving further break up
various categories of employees in manufacturing
of monthly targets under various heads.
plants and other offices in technical and other
• Continuous review of the performance by the professional areas as detailed below.
Core Committee with reference to the budgets
on an ongoing basis.

COMPANY AND SUBSIDIARY WISE QUALIFICATION DETAILS AS ON 31.03.2024

IP as on Professionals General
Sl Company and Engineering Diploma ITI/
31.03. HR Finance Graduates/ Others
No Subsidiary Graduates Holders NAC
2024 Post Graduates
1 HMT Limited 55 16 1 7 3 11 15 2
2 HMT Machine Tools 643 123 105 5 8 265 36 101
Ltd
3 HMT Watches Ltd 0 0 0 0 0 0 0 0
4 HMT (International) 16 13 0 1 1 0 1 0
Ltd
Total 714 152 106 13 12 276 52 103

22
 Annual Report 2023 - 24

Statistics on the number of employees separated on availing the VR Scheme in HMT and its Subsidiary
Companies during the last four years is furnished below:
Sl. No No. of employees opted for VRS
Organisation
2020-21 2021-22 2022-23 2022-24 Total
1 HMT Limited - - - - -
2 HMT Machine Tools Ltd. - - - - -
3 HMT Watches Ltd. - - - - -
4 HMT (International) Ltd. - - - - -
Total - - - - -

Surplus manpower in certain areas has been deployed under re-deployment scheme by providing training
and re-training to the employees and posting them at thrust areas to meet the goals of the organization. The
Company is trying its best to retain the skilled and professionally qualified personnel to arrest attrition.
PERSONNEL AND INDUSTRIAL RELATIONS
The Personnel and Industrial Relations situation in the Company during the year remained cordial.

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

23
 Annual Report 2023 - 24

Annexure - 4
REPORT ON CORPORATE GOVERNANCE

I COMPANY’S PHILOSOPHY Six Directors out of which half shall comprise of

In compliance with Regulation 17 of SEBI (LODR) Independent Directors including one Independent
Regulation, 2015 and as per the applicable provisions Woman Director. As on March 31, 2024, the Board
of the Companies Act, 2013 as amended from time of Directors comprised of Chairman & Managing
to time, your Directors submit their report on the Director (Additional Charge), two Government
matters mentioned in the said Regulation and practice nominee Directors and Director (Finance) (Additional
followed by the Company. Charge). As Government of India is the appointing
authority for Directors, they have been requested to
The Company has a “Code of Conduct for Board appoint Independent Directors to comply with Listing
Members and Senior Management" i.e., Chairman requirements.
and Managing Directors, all Directors, Executive
Directors and General Managers. The day-to-day management of the Company is
conducted by the Chairman & Managing Director
The Company has been following good Corporate
under the supervision and control of the Board of
Governance practices like striking reasonable balance
Directors.
in the composition of the Board of Directors, setting
up of Audit Committee and other Committees, During the year 2023-24, Six (6) Board Meetings were
adequate disclosure of information and business to held on May 17, July 20, August 14, September 1,
be deliberated by the Board, etc. November 10 in the calendar year 2023 and February
7 in the calendar year 2024.
II BOARD OF DIRECTORS
As per the listing requirements, the Board of The composition of Directors and their attendance at
Directors of the Company should consist of minimum the Board Meetings and at General Meetings during
the year are:

Meetings Attendance No. of other Directorships and Committee

held particulars Member /Chairmanship held as on 31.03.2024
Name Category during Board AGM/ Directorship # Committee
respective Meetings EGM Membership Chairmanship
tenure of
Directors
Krishnaswami C & MD - - NA 3 1 -
Ravishankar
(DIN: 10540509)
(w.e.f. 08.03.2024)
Rajeev Singh C & MD 1 1 NA 3 1 -
(DIN: 10447679)
(w.e.f. 30.12.2023
upto 08.03.2024)
Pankaj Gupta C & MD 5 5 Yes 3 1 -
(DIN: 09716028)
(upto 24.11.2023)
Arti Bhatnagar NENI 6 6 - 6 3 3
(DIN: 10065528)

24
 Annual Report 2023 - 24

Mukta Shekhar NENI 2 2 Yes 8 - -

(DIN: 10118859)
(w.e.f. 04.09.2023)
Renuka Mishra NENI 4 4 NA 2 1 -
(DIN: 08635835)
(upto 04.09.2023)
Rita Saxena ENI 3 3 Yes - - -
(DIN: 10294769)
(w.e.f. 25.08.2023)
C & MD: Chairman & Managing Director, ENI: Executive & Non-Independent, NENI: Non-Executive & Non-
Independent, NEI: Non-Executive & Independent
# Pursuant to Regulation 26 of the Listing Regulations, the Chairmanship / Membership of Audit Committee
and Stakeholders’ Relationship Committee in Public Limited Companies are considered.
No Director is holding equity shares in the Company as on 31.03.2024. None of the Directors had any relationship
inter-se during the year 2023-24.
Details of Directors holding Directorship in other Listed Entities and the category of their
Directorship as on 31.03.2024:
Category of
Name of Director Name of Other Listed Entity where Directorship is held
Directorship
Arti Bhatnagar Bharat Heavy Electricals Limited NENI
MMTC Limited NENI
The State Trading Corporation of India Limited NENI
NENI: Non-Executive & Non-Independent

TRAINING PROGRAMMES FOR DIRECTORS by the Government of India as per a well laid down
& FAMILIARISATION PROGRAMME TO process for each category of Directors. The skills /
INDEPENDENT DIRECTORS expertise / competencies as required in the context
Directors are apprised of the Company’s business, of business(es) & sector(s) pertaining to the Company
nature of operations, and other important matters are identified by the Government of India and
from time to time. A policy for training of the Board accordingly selection of Directors on the Board of
of Directors has been formulated. At the convenience Directors of the Company is made by the Government
of the Directors, they shall be nominated for various as per its own process. At the time of recruitment of
trainings, seminars, conferences, conventions etc. the Functional Directors, job description, desirable
qualification & experience of candidates are sent to
During the financial year, there were no familiarization the Public Enterprise Selection Board through the
programmes imparted to Independent Directors as administrative Ministry for announcement of vacancy
there were no Independent Directors on the Board. and recruitment of candidates. Skills/Expertise/
Competence of Board of Directors is below.
MATRIX ON SKILLS, EXPERTISE AND
COMPETENCIES OF THE BOARD OF DIRECTORS
HMT Limited being a Government Company, all the
Directors on the Board are selected and appointed

25
 Annual Report 2023 - 24

Sl. Name of Director Skills/Expertise/Competence

No.
1 Krishnaswami Shri. K. Ravishankar was Executive Director in M/s. Bharat Heavy Electricals Limited
Ravishankar (BHEL) / Corporate R &D / Hyderabad. Shri. K. Ravishankar completed his B.E in
(DIN: 10540509) Mechanical Engineering from Motilal Nehru Regional Engineering Collage Prayagraj,
Uttar Pradesh in the year 1985, M.E in Manufacturing Technology from REC, Trichy
in 1989, MBA from IGNOU, New Delhi in 1995 and M.A. (English) from Annamalai
University, Tamil Nadu in the year 2016.
Shri. K. Ravishankar joined BHEL as an Engineer Trainee at Tiruchirappalli Unit
in October 1985. He has served in Product Engineering Department in various
capacities in Pressure Parts & Boiler Layout groups and in the Material Management
group as head of procurement / Raw materials. He subsequently served as General
Manager / Engineering/ Boilers from 2015 to 2018. In May 2018, he was transferred
to BHEL- Corporate Office in the Mission Directorate for Advanced Ultra Super
Critical Technology development constituted under Ministry of Heavy Industries
, where he was responsible for development of projects for the Boiler Island
technology establishment. He was also Head of Hydrogen Business Group under
the new growth areas of Corporate Strategic Management wherein he addressed
the business potential, the technology requirements and the road map for business
development in BHEL. As Head of Corporate R&D, he has been instrumental in
focusing and addressing the technical development needs of the organization
through in house Development and focusing on the new and upcoming business
areas of Coal to Chemicals and Hydrogen value chain. In Nov 2023, he was elevated
as Executive Director, Corporate R&D.
2 Rajeev Singh Shri. Rajeev Singh is Executive Director of M/s. Bharat Heavy Electricals Limited.
(DIN: 10447679) (BHEL)
Shri. Rajeev Singh is a Mechanical Engineering Graduate from REC, Bhopal and an
MBA in Financial Management. Shri. Rajeev Singh joined BHEL in January 1988 at
Corporate Office, New Delhi.
He has served as Unit head of various business verticals/manufacturing Units viz.
Heavy Plates and Vessels Plant-Vizag, Transmission Business Group-Noida, Boiler
Auxiliary Plant - Ranipet. Under his dynamic leadership the teams at these Units
were able to deliver their best, resulting in excellent financial performance for the
Units. He has vast experience in the field of Hydro Turbines and Traction Machines.
3 Pankaj Gupta Shri Pankaj Gupta has 37 years of rich experience in wide range of business segments
(DIN: 09716028) with working in various capacities at BHEL.
(upto 24.11.2023) Shri Pankaj Gupta was an Executive Director at BHEL heading the Solar Business
Division (SBD) Bengaluru. Under his leadership, more than 270MW of Solar Plants
were commissioned. 147MW of three floating solar plants were commissioned
each having unique and state of the art anchoring & mooring arrangements with
distinction of commissioning of largest floating solar plant having capacity of
100MW at NTPC Ramagundam.

26
 Annual Report 2023 - 24

Earlier as Head of Defence & Aerospace Business sector of BHEL, he was instrumental
in introduction of various new products, entering into collaboration with ISRO for
manufacturing of Li-ion space grade cells & MOUs with Russia and Ukraine for
supply of Defence equipment.
In various capacities he had previously worked in functions of Manufacturing,
Technology, Production and Material Planning and spearheaded the successful
establishment and indigenisation of frontline Naval equipment manufacturing at
BHEL Haridwar. He has completed B. Tech. in Production Engineering from Punjab
Engineering College, Chandigarh.
4 Arti Bhatnagar Ms. Arti Bhatnagar is a Civil Servant of the Indian Defence Accounts Service of the
(DIN: 10065528) 1990 batch. She is presently working as Additional Secretary & Financial Adviser,
Ministry of Commerce & Industry, Ministry of Heavy Industry and Ministry of MSME.
Ms. Arti Bhatnagar has a postgraduate degree in Economics and M. Phil in Defence
Strategic Studies from Madras University. She is an alumni of the National Defence
College.
With about 25 years of experience in dealing with Finance, Accounts and Audit of the
Defence Forces, her expertise is in handling defence acquisition and procurement
contracts. Ms. Arti Bhatnagar has worked as Joint Secretary (Security), Cabinet
Secretariat handling SPG for five years. Ms. Arti Bhatnagar has also worked as a
Chief Vigilance Officer for Air India, Pawan Hans Ltd. and Airport Authority of India.
5 Mukta Shekhar Ms. Mukta Shekhar worked as Joint Secretary, Ministry of Heavy Industries. Ms.
(DIN: 10118859) Mukta Shekhar is an IRAS officer of 1994 batch. She has completed her M.Phil. in
Defence and Strategic Studies from University of Madras at the National Defence
College, New Delhi and Masters in History from St. Stephen’s College, Delhi. Her
area of expertise is Financial Management and project finance. She has worked
at various levels in the Indian Railways, Government of India as Financial Adviser
specializing in financial appraisal and project finance. She also worked at the Joint
General Manager level in DMRC where she was the associate Finance Officer for
projects of Phase II of DMRC.
She has wide experience in the Public Private Partnership area having steered fund
management and other contract related activities for pioneer PPP projects of Western
Railway, Ministry of Railways, Government of India. Ms. Mukta Shekhar has also a
varied experience in the International Cooperation arena and worked for 5 years in
the Ministry of External Affairs wherein she was looking after implementation of
projects under India’s Development assistance programme with other countries,
Investment and Trade promotion, international arbitration disputes, investment
and trade agreements, and civil aviation matters. She also formulated modalities
for innovative schemes like concessional financing packages for externally aided
projects. Ms. Mukta Shekhar also worked as Joint Secretary in Department of Food,
Ministry of Consumer Affairs, wherein she looked after International Cooperation
which entailed interface with multi-lateral agencies, the edible oil sector, monitoring
of prices of essential commodities and quality control of foodgrains procured under
the Central pool stock in conjunction with other stakeholders

27
 Annual Report 2023 - 24

6 Renuka Mishra Dr. Renuka Mishra is presently Economic Adviser in Ministry of Heavy Industries,
(DIN: 08635835) Government of India.
Dr. Renuka Mishra, PhD, MA (Economics) is an officer of Indian Economic Service
(2003 Batch). She has previously served in offices of Government of India at
Office of Development Commissioner (MSME), Department of Economic affairs,
Department of Commerce, Ministry of Overseas Indian Affairs and Department of
Higher Education.
Dr. Renuka Mishra has been regular author of many articles/papers published in
various journals/magazines on the areas covering taxation, forestry, renewable
energy, climate change and vulnerability of women.
7 Rita Saxena Ms. Rita Saxena has 35 years of rich experience in wide range of Finance operations
(DIN: 10294769) with working in various capacities at BHEL. She is a qualified Cost Accountant and
postgraduate in Commerce.
Ms. Rita Saxena was General Manager at BHEL heading the Internal Audit function
of South based Units/Region/Divisions. Earlier as Head Finance of Industrial Systems
Group of BHEL, she was instrumental in expeditious project execution and cost
control through close monitoring and fast resolution of issues involved. In various
capacities she had previously worked in finance functions of Project Engineering
& Management Division (PEM) and BHEL Corporate office and handled areas like
Project Accounting, Indirect Taxation, Auditing, Receivable Management etc. She
was instrumental in the computerization of finance function in PEM division of
BHEL. She had also served as Associate Project Director (Fin) of prestigious Advance
Ultra Super Critical (AUSC) R&D project, a MHI funded project where BHEL was lead
execution agency along with IGCAR & NTPC and had experience of Total Project
Management.

BRIEF RESUME OF DIRECTORS PROPOSED FOR for appointment and re-appointment is appended to
APPOINTMENT AND RE-APPOINTMENT AS PER the notice of the AGM.
SEBI (LODR) REGULATION, 2015
III COMMITTEES OF THE BOARD
Shri. Rajesh Kohli, Dr. Renuka Mishra and Smt. Sameena
A. AUDIT COMMITTEE
Kohli are proposed for appointment as Directors in
terms of Article 67 of the Article of Association of the As on 31.03.2024, the Audit Committee consists of
Company read with Section 160 of the Companies Act, three Directors i.e., Ms. Mukta Shekhar, Government
2013 in the ensuing Annual General Meeting. In terms Nominee Director as Chairman, Shri. Krishnaswami
of the provisions of the Companies Act, 2013, Ms. Ravishankar, Chairman and Managing Director (Addl.
Arti Bhatnagar, Government Nominee Director will be Charge) and Ms. Rita Saxena, Director (Finance) (Addl.
retiring by rotation and being eligible, offer herself for Charge) as members. The Company Secretary shall be
re-appointment at the ensuing AGM. The Nomination the Convener of the Committee Meetings.
and Remuneration Committee & Board of Directors As and when the Independent Directors are
of the Company recommends the appointment/re- appointed on the Board by the Government of India,
appointment of said Directors. Audit Committee of the Board shall be reconstituted
In terms of Regulation 36(3) of the Listing accordingly to comply with the provisions of the
Regulations, brief resume of the Directors proposed Companies Act, 2013, the SEBI (LODR) Regulation,
2015 and DPE guidelines.

28
 Annual Report 2023 - 24

In terms of section 177(8) of the Companies Act, payment to statutory auditors for any other services
2013, the Board accepted all the recommendations rendered by the statutory auditors, reviewing, with
made by the Audit Committee during the year. the management, the annual financial statements
The terms of reference of Audit Committee and auditor’s report thereon before submission to the
are as enumerated under the provisions of the board for approval, reviewing, with the management,
Companies Act, 2013, SEBI (Listing Obligations the quarterly financial statements before submission
and Disclosure Requirements) Regulations, 2015 to the board for approval, Scrutiny of inter-corporate
and the DPE guidelines on Corporate Governance loans and investments, Valuation of undertakings or
which includes Oversight of the Company’s financial assets of the listed entity, wherever it is necessary,
reporting process and the disclosure of its financial Evaluation of internal financial controls and risk
information to ensure that the financial statement is management systems etc.
correct, sufficient and credible, recommendation of During the year 2023-24, Six (6) Audit Committee
remuneration of statutory auditors appointed by CAG, Meetings were held on May 17, July 20, August 14,
recommendation for appointment, remuneration and September 1, November 10 in the calendar year 2023
terms of appointment of internal auditors, approval of and February 7 in the calendar year 2024.

DETAILS OF ATTENDANCE OF MEMBERS AT THE AUDIT COMMITTEE MEETING HELD DURING 2023-24
Name of the Member Category Meetings held during respective No of Meetings attended
tenure of Directors
Shri. Krishnaswami Ravishankar1 C & MD - -
Shri. Rajeev Singh2 C & MD 1 1
Ms. Arti Bhatnagar3 NENI 3 3
Shri. Pankaj Gupta4 C & MD 5 5
Ms. Mukta Shekhar5 NENI 2 2
Dr. Renuka Mishra6 NENI 4 4
Ms. Rita Saxena7 ENI 3 3
1. Appointed as Member w.e.f. 08.03.2024 Company Secretary shall be the Convener of the
2. Appointed as Member w.e.f. 30.12.2023 and Ceased Committee Meeting.
to be Member w.e.f. 08.03.2024
3. Ceased to be Member w.e.f. 25.08.2023, Appointed as As and when the Independent Directors are
Member w.e.f. 25.11.2023 and Ceased to be Member appointed on the Board by the Government of India,
w.e.f. 30.12.2023 Nomination and Remuneration Committee of the
4. Ceased to be Member w.e.f. 25.11.2023 Board shall be reconstituted accordingly to comply
5. Appointed as Chairman w.e.f. 04.09.2023 with the provisions of the Companies Act, 2013, the
6. Ceased to be Chairman w.e.f. 04.09.2023 SEBI (LODR) Regulation, 2015 and DPE guidelines.
7. Appointed as Member w.e.f. 25.08.2023
The Nomination and Remuneration Committee shall
B. NOMINATION & REMUNERATION COMMITTEE comply with the terms of reference as enumerated
As on 31.03.2024, the Nomination and Remuneration under the provisions of the Companies Act, 2013, SEBI
Committee consists of Three Directors i.e., Ms. Mukta (Listing Obligations and Disclosure Requirements)
Shekhar, Government Nominee Director as Chairman, Regulations, 2015 and the DPE guidelines on Corporate
Ms. Arti Bhatnagar, Government Nominee Director Governance which includes recommend to the Board
and Shri. Krishnaswami Ravishankar, Chairman and of Directors matters relating to the appointment
Managing Director (Addl. Charge) as members. The and remuneration of the key managerial personnel

29
 Annual Report 2023 - 24

and senior management personnel, Recommend Disclosure Requirements) Regulations, 2015, DPE
on Performance Related Pay in line with relevant guidelines and directions of the Board of Directors of
Guidelines of the Department of Public Enterprises, the Company.
Recommend the annual bonus/ variable pay pool
and policy for its distribution across executives and During the year 2023-24, Two (2) Nomination and
non-unionized supervisors and carrying out any other Remuneration Committee Meetings were held on
functions as enumerated under the provisions of the September 1 and November 10 in the calendar year
Companies Act, 2013, SEBI (Listing Obligations and 2023.

DETAILS OF ATTENDANCE OF MEMBERS AT THE NOMINATION AND REMUNERATION COMMITTEE

MEETING HELD DURING 2023-24
Name of the Member Category Meetings held during No of Meetings
respective tenure of attended
Directors
Shri. Krishnaswami Ravishankar1 C & MD - -
Shri. Rajeev Singh2 C & MD - -
Ms. Rita Saxena3 ENI - -
Shri. Pankaj Gupta4 C & MD 2 2
Ms. Mukta Shekhar5 NENI 1 1
Dr. Renuka Mishra6 NENI 1 1
Ms. Arti Bhatnagar NENI 2 2
1. Appointed as Member w.e.f. 08.03.2024
2. Appointed as Member w.e.f. 30.12.2023 and Ceased to be Member w.e.f. 08.03.2024
3. Appointed as Member w.e.f. 25.11.2023 and Ceased to be Member w.e.f. 30.12.2023
4. Ceased to be Member w.e.f. 25.11.2023
5. Appointed as Chairman w.e.f. 04.09.2023
6. Ceased to be Chairman w.e.f. 04.09.2023

Being a Government Company, the appointment entrusted with the additional charge of the post of
and fixation of terms and conditions of all Directors Chairman & Managing Director, HMT Limited by the
(including tenure & remuneration of Functional Ministry of Heavy Industries, Government of India
Directors) are made by the Government of India. upto 24.11.2023. Later, Shri. Rajeev Singh, Executive
Director, M/s. Bharat Heavy Electricals Limited
The appointment/ remuneration in respect of KMPs
had been entrusted with the additional charge of
and Senior Management Personnel are governed by
the post of Chairman & Managing Director, HMT
the policies covered in HMT’s personal manual.
Limited w.e.f., 30.12.2023 to 08.03.2024 and Shri.
Ministry of Corporate Affairs vide Notification dated Krishnaswami Ravishankar, Executive Director, M/s.
June 5, 2015 provided that Section 178 (2), (3) & (4) of Bharat Heavy Electricals Limited has been entrusted
the Companies Act, 2013 with regard to performance with the additional charge of the post of Chairman
evaluation of Directors shall not apply to Government & Managing Director, HMT Limited w.e.f., 08.03.2024
Company. to 24.08.2024 i.e., date of his superannuation or till
the joining of a regular incumbent or until further
Remuneration to Directors orders whichever is earliest, subject to ex-post facto
During the Financial Year, Shri Pankaj Gupta, Executive approval of Appointments Committee of the cabinet
Director, M/s. Bharat Heavy Electricals Limited was (ACC).

30
 Annual Report 2023 - 24

Accordingly, Shri Pankaj Gupta, Shri. Rajeev Singh drawing any remuneration & perquisites from the
and Shri. Krishnaswami Ravishankar, Chairman Company during the Financial Year. Hence details of
& Managing Directors (Addl. Charge) were not remuneration of Whole Time Directors are NIL as
below.
Amount in Rs.
Particulars of Remuneration Shri Pankaj Gupta Shri. Rajeev Singh Shri. Krishnaswami
Ravishankar
Gross Salary NIL NIL NIL
Value of perquisites / Commission / Stock Option NIL NIL NIL
Total NIL NIL NIL

Part-time Official (Government Nominee) Directors and Managing Director (Additional Charge) w.e.f.,
are not paid any remuneration or sitting fees for 30.12.2023 upto 08.03.2024 and Shri Krishnaswami
attending Board/Committee meetings. Ravishankar, Chairman and Managing Director
(Additional Charge) w.e.f., 08.03.2024 as a single
No sitting fee is payable to any of the directors except
member to look after transfer/ transmission of shares
Non-Official (Independent) Directors. An amount of
issued by the Company etc. One (1) meeting was held
Rs.5000/- per meeting of the Board and Rs.3000/- for
during the FY 2023-24.
each Committee Meetings is paid as sitting fee to the
Non-Official (Independent) Director for attending the (ii) Name & Designation of the Compliance
Board and Committee Meetings as per the policy of Officer:
the company. Shri Kishor Kumar S, Company Secretary
The Company does not pay any commission to its (iii) The Stakeholders Relationship Committee
Directors. The Company has not issued any stock of Board/ Investors Grievance Committee
options to its Directors. As on 31.03.2024, the Stakeholders Relationship
Apart from receiving sitting fee and reimbursement Committee consists of three Directors i.e., Ms.
of expenses incurred in the discharge of their Mukta Shekhar, Government Nominee Director as
duties, none of the Non-executive Directors had Chairman, Shri. Krishnaswami Ravishankar, Chairman
any pecuniary relationship or transactions with the and Managing Director (Addl. Charge) and Ms.
Company during the year 2023-24. Rita Saxena, Director (Finance) (Addl. Charge) as
members. The Company Secretary is the Convener of
There were no Independent Directors during the
the Committee Meeting.
financial year 2023-24. Hence, sitting fees paid to the
Non-Official Independent Directors during the year As and when the Independent Directors are
2023-24 is Nil. appointed on the Board by the Government of India,
Stakeholders Relationship Committee of the Board
C. SHAREHOLDER COMMITTEE:
shall be reconstituted accordingly to comply with the
(i) Share Transfer Sub-Committee provisions of the SEBI (LODR) Regulation, 2015 & DPE
During the FY 2023-24, the Share Transfer Sub- guidelines.
Committee comprised of Shri. Pankaj Gupta, During FY 2023-24, Two Meetings were held on
Chairman and Managing Director (Additional Charge) September 01 in the calendar year 2023 and February
upto 24.11.2023, Shri. Rajeev Singh, Chairman 07 in the calendar year 2024.

31
 Annual Report 2023 - 24

DETAILS OF ATTENDANCE OF MEMBERS AT THE Chairman, Ms. Mukta Shekhar, Government Nominee
STAKEHOLDER’S RELATIONSHIP COMMITTEE Director and Ms. Rita Saxena, Director (Finance)
MEETING HELD DURING 2023-24 (Addl. Charge) as Members of the Committee. The
Name of the Member Category Meetings No of Company Secretary is the Convener of the Committee
held during Meetings Meeting.
respective attended As and when the Independent Directors are
tenure of appointed on the Board by the Government of India,
Directors CSR Committee of the Board shall be reconstituted
Shri. Krishnaswami C & MD - - accordingly to comply with the provisions of the
Ravishankar1
Companies Act, 2013.
Shri. Rajeev Singh2 C & MD 1 1
Ms. Arti Bhatnagar3 NENI - - Terms of reference of the CSR Committee shall be as
Shri. Pankaj Gupta4 C & MD 1 1 enumerated under the provisions of the Companies
Ms. Mukta Shekhar5 NENI 1 1 Act, 2013 & DPE Guidelines.
Dr. Renuka Mishra6 NENI 1 1 During the year 2023-24, Three (3) CSR Committee
Ms. Rita Saxena 7
ENI 2 2 Meetings were held on July 20, September 1 in the
1. Appointed as Member w.e.f. 08.03.2024 calendar year 2023 and February 7 in the calendar
2. Appointed as Member w.e.f. 30.12.2023 and Ceased year 2024.
to be Member w.e.f. 08.03.2024
3. Ceased to be Member w.e.f. 25.08.2023, Appointed as DETAILS OF ATTENDANCE OF MEMBERS AT
Member w.e.f. 25.11.2023 and Ceased to be Member THE CSR COMMITTEE MEETING HELD DURING
w.e.f. 30.12.2023 2023-24
4. Ceased to be Member w.e.f. 25.11.2023 Name of the Category Meetings No of
5. Appointed as Chairman w.e.f. 04.09.2023 Member held Meetings
6. Ceased to be Chairman w.e.f. 04.09.2023 during attended
7. Appointed as Member w.e.f. 25.08.2023 respective
The terms of reference would include review and tenure of
timely redressal of all the grievance of security holders Directors
of the Company and carrying out any other function Shri. Krishnaswami C & MD - -
Ravishankar1
mentioned in the SEBI (LODR) Regulations, 2015.
Shri. Rajeev Singh2 C & MD 1 1
During the financial year 2023-24, 31 Complaints were Ms. Arti Bhatnagar3 NENI 1 1
received from shareholders which has been resolved Shri. Pankaj Gupta4 C & MD 2 2
to the satisfaction during the year itself. There are no Ms. Mukta Shekhar5 NENI 1 1
pending complaints. Dr. Renuka Mishra6 NENI 2 2
Number of pending Share Transfers - NIL Ms. Rita Saxena7 ENI 2 2
D. CORPORATE SOCIAL RESPONSIBILITY 1. Appointed as Chairman w.e.f. 08.03.2024
COMMITTEE 2. Appointed as Chairman w.e.f. 30.12.2023 and Ceased
to be Chairman w.e.f. 08.03.2024
To comply with the provisions of section 135 of 3. Ceased to be Member w.e.f. 25.08.2023, Appointed
the Companies Act, 2013, the Board of Directors as Chairman w.e.f. 25.11.2023 and Ceased to be
has constituted the Corporate Social Responsibility Chairman w.e.f. 30.12.2023
Committee (CSR Committee). 4. Ceased to be Chairman w.e.f. 24.11.2023
As on 31.03.2024, CSR Committee consists of Three 5. Appointed as Member w.e.f. 04.09.2023
Directors i.e., Shri. Krishnaswami Ravishankar, 6. Ceased to be Member w.e.f. 04.09.2023
Chairman and Managing Director (Addl. Charge) as 7. Appointed as Member w.e.f. 25.08.2023

32
 Annual Report 2023 - 24

E. RISK MANAGEMENT COMMITTEE DETAILS OF ATTENDANCE OF MEMBERS AT THE

As on 31.03.2024, Risk Management Committee RISK MANAGEMENT COMMITTEE MEETING
consists of Three Directors i.e., Ms. Mukta Shekhar, HELD DURING 2023-24
Government Nominee Director as Chairman, Shri. Name of the CategoryMeetings No of
Krishnaswami Ravishankar, Chairman and Managing Member held during Meetings
Director (Addl. Charge), Shri. S.K. Kadbe, General respective attended
Manager (Operations & Marketing), HMT Limited as tenure of
Members of the Committee. Company Secretary is Directors
the Convener of the Committee. Shri. Krishnaswami C & MD - -
As and when the Independent Directors are Ravishankar1
appointed on the Board by the Government of India, Shri. Rajeev Singh2 C & MD 1 1
Risk Management Committee of the Board shall be Ms. Rita Saxena3 ENI - -
reconstituted accordingly to comply with the SEBI Shri. Pankaj Gupta4 C & MD 1 1
(LODR) Regulation, 2015 and DPE guidelines. Ms. Mukta Shekhar5 NENI 1 1
The terms of reference of the Risk Management Dr. Renuka Mishra6 NENI 1 1
Committee are as enumerated under the provisions Shri. S.K. Kadbe7 GM(O&M) 1 1
of the SEBI (Listing Obligations and Disclosure Shri. M.R.V Raja8 GM(O&M) 1 1
Requirements) Regulations, 2015 which includes 1. Appointed as Member w.e.f. 08.03.2024
formulation of detailed risk management policy,
2. Appointed as Member w.e.f. 30.12.2023 and Ceased
to ensure appropriate methodology, processes
to be Member w.e.f. 08.03.2024
and systems are in place to monitor and evaluate
3. Appointed as Member w.e.f. 25.11.2023 and Ceased
risks associated with the business of the Company,
to monitor and oversee implementation of the to be Member w.e.f. 30.12.2023
risk management policy, including evaluating the 4. Ceased to be Member w.e.f. 24.11.2023
adequacy of risk management systems, etc. 5. Appointed as Chairman w.e.f. 04.09.2023
6. Ceased to be Chairman w.e.f. 04.09.2023
During the year 2023-24, Two (2) Risk Management 7. Appointed as Member w.e.f. 25.08.2023
Committee Meetings were held on July 20 in the 8. Ceased to be Member w.e.f. 25.08.2023
calendar year 2023 and January 4 in the calendar
year 2024.
F. PARTICULARS OF SENIOR MANAGEMENT OF THE COMPANY DURING FY2023-24
Name Current Designation Date of Date of Promotion / Date of Cessation
Joining Designated to Senior (Changes if any, since
Management the close of previous FY)
Shri. S.V. General Manager (MTP) 25.08.1989* 06.10.2023 23.02.2024
Subramanyam HMT Machine Tools
Limited
Shri. M.R.V Raja General Manager (Legal) 17.10.1988 01.01.2020 -
Shri. S.K. Kadbe General Manager 01.02.1993 01.07.2022 -
(Operations & Marketing)
Smt. Aparna R Manager (Finance & 28.01.2016 10.11.2023 -
Accounts)/ CFO
Shri. Kishor Kumar S Manager (Company 20.03.2017 08.06.2017 -
Secretary)
Smt. Kamna Mehta Deputy Manager 17.12.2018 12.02.2019 09.11.2023
(Corporate Finance)/ CFO
*As per records of HMT Machine Tools Limited, wholly owned subsidiary of HMT Limited.

33
 Annual Report 2023 - 24

INDEPENDENT DIRECTORS’ MEETING to the Consolidated Financial Statements. The

During FY 2023-24, Independent Directors’ Meeting Auditors of subsidiary company and joint venture
was not held as no Independent Directors were companies were appointed separately by them
appointed on the Board. and were not the same auditors who conducted
the audit of financial statements of HMT Limited.
IV GENERAL BODY MEETINGS
v) Outstanding GDRs / ADRs / Warrants or any
a) The details of last three Annual General Convertible Instruments, conversion date and
Meetings held are as under: likely impact on equity: NIL
Financial year Date Time Venue
vi) Commodity Price Risk or Foreign Exchange Risk
2020-2021* 29.10.2021 10.30 a.m. Registered Office and Hedging Activities: NIL
at No. 59,
2021-2022* 30.09.2022 10.30 a.m. Bellary Road,
vii) Disclosures with respect to demat suspense
2022-2023* 29.09.2023 10.30 a.m. Bengaluru-560 account/ unclaimed suspense account: NIL
032.
*Annual General Meeting was held through Video Conferencing. viii) List of all credit ratings obtained by Company:
Deemed venue was Registered Office of the Company. NIL
b) DETAILS OF SPECIAL RESOLUTIONS ix) A Certificate received from Company Secretary
PASSED IN PREVIOUS THREE AGMS in Practice is attached with this report as
Annexure-15 confirming that none of the
No Special Resolutions were passed during the last
Directors on the Board of the Company have been
three years.
debarred or disqualified from being appointed
c) POSTAL BALLOT or continuing as Directors of Company.
No special resolutions were passed through postal x) During the year 2023-24, the Board of Directors
ballot in the previous year. No special resolutions accepted all the recommendations of its
were proposed to be conducted through postal ballot. committees which were mandatorily required.
V DISCLOSURES xi) During the Financial year 2023-24, the Company
i) There were no transactions of a material did not receive any complaints of Sexual
nature with its Promoters, the Directors or the Harassment in the workplace and therefore
Management, their Subsidiaries or Relatives etc., there were no pending cases as on the end of
which may have potential conflict of interest w.r.t financial year.
Company at large. xii) Utilization of funds raised through preferential
allotment or qualified institutions placement as
ii) We affirm that no personnel were denied to
specified under Regulation 32 (7A): NA
access the audit committee. The personnel were
also provided unrestricted access to the senior xiii) Management’s reply to observations in Corporate
management in case of any complaints. Governance certificate:

iii) Policy for determining ‘material’ subsidiaries & Administrative Ministry has been requested to appoint
Policy on dealing with related party transactions four Independent Directors including one woman
were placed on the Company’s website Independent Director on the Board of Directors
https://www.hmtindia.com/policies/. of the Company and one Independent Director of
the Company as Director on the Board of material
iv) Details relating to fees paid to the Statutory subsidiary to comply with listing requirements. As and
Auditors were given in Note 31 to the when the Independent Directors are appointed on the
Standalone Financial Statements and Note 31 Board by the Government of India, Committee of the

34
 Annual Report 2023 - 24

Board shall be reconstituted accordingly to comply and Trading approval from Stock Exchanges is under
with the provisions of the Companies Act 2013, SEBI process.
(LODR) Regulation, 2015 and DPE guidelines and shall
Hon’ble National Company Law Tribunal (NCLT) vide
ensure quorum of the Board/Committees Meeting in
its Order dated 16.10.2018 had confirmed/ approved
line with the SEBI (LODR) Regulations, 2015.
reduction in share capital of the Company from
xiv) Presidential Directives and Guidelines Rs.1204.09 Crores to Rs.355.60 Crores by reduction
of 848490000 Equity Shares of Rs.10/- each held
Your Company has been following the Presidential by President of India (as per the Cabinet Approval).
Directives and guidelines issued by the Govt. of Registrar of Companies, Karnataka (ROC) had
India from time to time. registered the NCLT order on 17.11.2018 and issued
Details of Presidential Directives issued by the “Certificate of Registration confirming the Reduction
Central Government to Company and their of Share Capital of HMT Limited”. However, the
compliance during the year and also in the last process of reduction of share capital in the records
three years - NIL of Stock Exchanges and Depositories are pending
for procedural compliances which will be taken
xv) No expenditure has been debited in books up subsequent to listing of equity shares in Stock
of accounts which are not for the purpose Exchanges for trading. Hence there is a difference
of business and no expenses were incurred between Paid up Share Capital of the Company as
& accounted which are personal in nature per Audited Financial Statements and Shareholding
and incurred for the Board of Directors & Top Pattern provided by RTA.
Management.
VII SUBSIDIARY COMPANIES
xvi) Details of Administrative and office expenses The Minutes of the Board meetings along with a
as a percentage of total expenses vis-a-vis report on significant developments of the Unlisted
financial expenses and reasons for increase- Material Subsidiary Companies were periodically
Administrative and office expenses constitutes placed before the Board of Directors of the Company.
2.37% of total expenses and financial expenses
as a percentage of total expenses is NIL. Details of material Subsidiary Companies & its
Statutory Auditors are below:
VI RECONCILIATION OF SHARE CAPITAL
AUDIT Particular Date and Name and date of
A qualified Practicing Company Secretary carried out place of appointment of
Incorporation Statutory Auditor
a share capital audit to reconcile the total admitted
equity share capital with the National Securities HMT Machine 09th August R Venkata Krishna & Co
Depository Limited (NSDL) and Central Depository Tools Limited 1999 Chartered
Services (India) Limited (CDSL) and the total issued and Bengaluru Accountants
listed equity share capital. The audit report confirmed Date of Appointment:
that the total issued/paid-up capital is in agreement 21.09.2023
with the total number of shares in physical form and HMT 13th P B M N & Co
total number of dematerialized shares held with (International) December Chartered
NSDL and CDSL except for 733420900 equity shares Limited 1974 Accountants
of Rs.10/- each which were allotted to President of Bengaluru Date of Appointment:
India from the year 2005 to 2014 and Listing approval 21.09.2023
was obtained from Stock Exchanges. Corporate Action

35
 Annual Report 2023 - 24

VIII MEANS OF COMMUNICATION ii) Financial Calendar

The Company published its Quarterly Results as per Financial Year: April 01, 2023 to March 31, 2024
the listing requirements in leading newspapers viz., iii) Book Closure
The Financial Express, Hosa Digantha and Rajasthan Please refer to the Notice of the AGM
Patrika. The above results were also displayed at
the Company’s website https://www.hmtindia.com/ iv) The Equity Shares of the Company are listed
investor-relation/pr/. Pursuant to the directions with the following stock exchanges
of Securities & Exchange Board of India (SEBI), the
BSE Limited Scrip Code: 500191
Company has been submitting documents viz.,
Phiroze Jeejeebhoy
Shareholding Pattern, Financial Results, Annual Report
Towers
etc. The Company has not made any presentations to
institutional investors or analysts. 25th Floor, Dalal Street,
Mumbai – 400 001
IX CEO AND CFO CERTIFICATION
National Stock Exchange Scrip Symbol: HMT
In terms of the SEBI (LODR) Regulation, 2015, the of India Limited
Certification by the CEO (Chairman & Managing “Exchange Plaza”,
Director) and CFO on the Financial Statements and Bandra-Kurla Complex
Internal controls relating to financial reporting for the Bandra (E), Mumbai –
financial year 2023-24 had been obtained and was 400 051
placed before the Board. (Refer Annexure – 16)
(Annual Listing Fees for the year were paid to the
X. WHISTLE BLOWER POLICY above Stock Exchanges)
The Company formulated a Vigil Mechanism / Whistle
Blower Policy for Directors and employees to report v) Corporate Identity Number (CIN) of the
genuine concerns. The policy provides for adequate Company:L29230KA1953GOI000748
safeguards against victimization of Director/s or
vi) Share Transfer System
employee/s and also provides for direct access to the
chairperson of the Audit Committee in appropriate In accordance with Regulation 40 of the Listing
or exceptional cases. The policy is placed on the Regulations, as amended, the Company has stopped
Company’s website https://www.hmtindia.com/ accepting any fresh transfer requests for securities
policies/. held in physical form. Accordingly, securities of listed
companies can be transferred only in dematerialised
XI GENERAL SHAREHOLDERS INFORMATION
form.
i) Annual General Meeting
Further, SEBI has, vide its circular dated 25th January
Date 22nd November, 2024 2022, mandated companies to issue its securities in
Time 11.00 A.M
Venue The Company is conducting meeting demat form only while processing various service
through Video Conference/ Other Audio- requests such as issue of duplicate share certificates,
Visual Means (VC/ OAVM) pursuant to the subdivision, consolidation, transmission, etc. to
MCA Circular dated September 19, 2024 enhance ease of dealing in securities markets by
read with MCA Circular dated May 5, 2020. investors. Members who are holding shares in
The deemed venue for the AGM shall be physical form are hereby requested to convert their
the registered office of the Company. For holdings to electronic mode to avail various benefits
details, please refer to the Notice of this of dematerialization.
AGM
No dividends have been declared.

36
 Annual Report 2023 - 24

vii) Mandatory & Non-Mandatory Requirements BSE - Company: HMT LTD. (SCRIP CODE – 500191)
The Company is compliant to all the mandatory Period: April 2023 to March 2024
requirements specified in Listing Regulations BSE Market Index
on Corporate Governance, except to those non (Close)
compliances as observed in the Certificate on Month High Price Low Price S&P BSE SENSEX
Corporate Governance and the Secretarial Audit Apr-23 28.49 23.70 61112.44
May-23 29.85 24.50 62622.24
Report. The reasons for non-compliance have been
Jun-23 34.20 28.00 64718.56
furnished separately as reply to the observations of
Jul-23 29.00 27.00 66527.67
Secretarial Auditors.. Aug-23 31.40 26.25 64831.41
Sep-23 46.02 30.51 65828.41
The status on the compliance with the discretionary
Oct-23 70.40 46.90 63874.93
non-mandatory recommendation in the Listing Nov-23 55.43 45.91 66988.44
Regulations is as under: Dec-23 58.35 46.85 72240.26
Jan-24 71.88 49.40 71752.11
The Company has the position of the Chairman &
Feb-24 74.80 52.00 72500.30
Managing Director (Addl. Charge) (Executive) & there Mar-24 58.00 42.64 73651.35
is no Non-Executive Chairman. As the Company’s
financial results are submitted to Stock Exchanges, NSE - Company: HMT LTD. (SCRIP SYMBOL – HMT)
displayed on the website of the Company and Period: April 2023 to March 2024
published in the Newspapers, they are not separately NSE Market Index
circulated to all the shareholders. The Company (Close)
is making endeavors to move towards a regime of Month High Price Low Price NSE NIFTY
financial statements with unmodified audit opinion. Apr-23 28.00 23.50 18065.00
May-23 28.95 24.25 18534.40
Internal Auditor reports to the Audit Committee.
Jun-23 34.80 27.80 19189.05
viii) Performance in comparison to broad- Jul-23 29.50 27.00 19753.80
based indices Aug-23 31.75 26.75 19253.80
Sep-23 46.35 30.55 19638.30
The details of high/low market price of the shares Oct-23 70.40 47.30 19079.60
at the Bombay Stock Exchange Ltd., (BSE) Mumbai Nov-23 55.85 45.90 20133.15
and at National Stock Exchange of India Ltd., (NSE) Dec-23 58.50 46.75 21731.40
Mumbai and Market Index are as under: Jan-24 72.10 49.50 21725.70
Feb-24 73.40 53.00 21982.80
Mar-24 57.75 41.05 22326.90
ix) *Distribution of Shareholding:
The shareholding distribution of Equity shares as of 30.03.2024 is given below:
HMT LIMITED
Distribution of Shareholding as on 30/03/2024 (AMOUNT WISE TOTAL)
Sl. No. Category (Amount) No. of Holders % To Holders Amount (Rs.) % To Equity
1 1 - 5000 18381 89.10 20085200.00 0.17
2 5001 - 10000 1133 5.49 9423020.00 0.08
3 10001 - 20000 544 2.64 8410270.00 0.07
4 20001 - 30000 175 0.85 4482970.00 0.04
5 30001 - 40000 83 0.40 2987560.00 0.02
6 40001 - 50000 99 0.48 4703830.00 0.04
7 50001 - 100000 123 0.60 9103670.00 0.07
8 100001 and above 91 0.44 11981719880.00 99.51
TOTAL: 20629 100.00 12040916400.00 100.00

37
 Annual Report 2023 - 24

HMT LIMITED
Distribution of Shareholding as on 30/03/2024 (SHARES WISE TOTAL)
Sl. No Category (Shares) No. of Holders % To Holders No. of Shares % To Equity
1 1 - 5000 20415 98.96 5009285 0.42
2 5001 - 10000 123 0.60 910367 0.07
3 10001 - 20000 44 0.21 642102 0.05
4 20001 - 30000 21 0.10 506842 0.04
5 30001 - 40000 9 0.04 317706 0.03
6 40001 - 50000 3 0.02 129177 0.01
7 50001 - 100000 9 0.04 548078 0.05
8 100001 and above 5 0.03 1196028083 99.33
TOTAL: 20629 100.00 1204091640 100.00

HMT LIMITED
Shareholding Pattern as on 30/03/2024 (Total)
Sl. No. Description No. of Cases Total Shares % Equity
1 Clearing Members 1 500 0.00
2 HUF 387 522965 0.04
3 Indian Mutual Funds 10 18900 0.00
4 Insurance Companies 1 100 0.00
5 Bodies Corporates 154 68000261 5.65
6 Mutual Funds 1 100 0.00
7 NBFC 1 2750 0.00
8 Non-Resident Indians 91 59170 0.00
9 Non-Resident Indian Non Repatriable 84 53629 0.00
10 Promoters 2 1128056626 93.69
11 Resident individuals 19897 7376639 0.61
Total: 20629 1204091640 100.00

*Hon’ble National Company Law Tribunal (NCLT) vide compliances which are under process in consultation
its Order dated 16.10.2018 confirmed/ approved with Registrar and Share Transfer Agent (“RTA”). The
reduction in share capital of the Company from shareholding of President of India is 279566626 of
Rs.1204.09 Crores to Rs.355.60 Crores by reduction Rs.10/- each, equivalent to 78.62% shareholding in
of 848490000 Equity Shares of Rs.10/- each held the Company as against 1128056626 equity share of
by President of India (as per the Cabinet Approval). Rs.10/- each shown as per RTA records. Hence there
Registrar of Companies, Karnataka (ROC) has is a difference between Paid up Share Capital of the
registered the NCLT order on 17.11.2018 and issued Company as per Audited Financial Statements and
“Certificate of Registration confirming the Reduction Shareholding Pattern provided by RTA. Shareholding
of Share Capital of HMT Ltd”. However, the process Pattern after considering Reduction of Share Capital
of reduction of share capital in the records of Stock is below
Exchanges, Depositories is pending for procedural

38
 Annual Report 2023 - 24

HMT LIMITED
Shareholding Pattern as on 30/03/2024 (Total)
(After considering Reduction of Share Capital)
Sl. No. Description No. of Cases Total Shares % Equity
1 Clearing Members 1 500 0.00
2 HUF 387 522965 0.15
3 Indian Mutual Funds 10 18900 0.01
4 Insurance Companies 1 100 0.00
5 Bodies Corporates 154 68000261 19.12
6 Mutual Funds 1 100 0.00
7 NBFC 1 2750 0.00
8 Non-Resident Indians 91 59170 0.02
9 Non-Resident Indian Non Repatriable 84 53629 0.01
10 Promoters 2 279566626 78.62
11 Resident Individuals 19897 7376639 2.07
Total: 20629 355601640 100.00

x) Compliance & Risk Management Committee.

The Company has duly complied with the Regulations 3. One Independent Director of Company (Listed
17 to 27 and clause (b) to (i) of Regulation 46 (2) of Entity) has not been appointed as Director on the
SEBI (LODR) Regulations except the following: Board of unlisted material subsidiary Companies
as per Regulation 24 of SEBI (LODR) Regulation,
1. The Board of Directors of the Company should
2015.
consist of minimum six Directors out of which
half of the Board of Directors shall comprise 4. Delay in submission of annual results as per the
of Independent Directors including one requirement of SEBI (LODR) Regulations, 2015
Independent Woman Director. Strength of
the Board of Directors in the beginning of the Due to some of the above instances of non-compliance
financial year was Three consisting of Chairman by the Company, penalties, strictures were imposed
and Managing Director (Addl. Charge), two on the Company by the Stock Exchanges. The
Government Nominee Directors and was Company has sought a waiver of the penalties with
increased to Four by the end of the financial year Stock Exchanges.
due to the appointment of Director (Finance) xi) Disclosure by listed entity and its
(Addl. Charge) on 25.08.2023. The Composition subsidiaries of ‘Loans and advances in
of the Board and the quorum for the subsequent the nature of loans to firms/companies in
meetings is not in compliance with the SEBI which directors are interested by name
(LODR) Regulation. and amount
2. Due to vacancy of required number of No loans and/or advances in the nature of loans
Independent Directors on the Board of the are given to firms/companies in which Directors are
Company, there was no validly constituted interested other than Subsidiaries.
Audit Committee, Nomination & Remuneration
Committee, Stakeholders Relationship xii) REGISTRAR AND SHARE TRANSFER
Committee and Risk Management Committee and AGENTS
non-compliance with the quorum requirement Name: KFin Technologies Limited
except for Stakeholders Relationship Committee (Formerly KFin Technologies Pvt Limited)

39
 Annual Report 2023 - 24

Address: Selenium Building, Tower-B, System, the International Securities Identification

Plot No 31 & 32, Financial District, Number (ISIN) allotted to the Company’s shares is
Nanakramguda, Serilingampally, INE262A01018.
Hyderabad, Rangareddy, Telangana, India – 500 032.
Email ID: [email protected] xiii) Investor Education and Protection Fund
Toll Free/ Phone Number: 1800 309 4001 (IEPF)
WhatsApp Number: (91) 910 009 4099 In terms of the provisions of the Companies Act, 2013
KPRISM (Mobile Application): https://kprism.kfintech.
and read with rules made thereunder, as on 31st
com/
March, 2024, no amount and shares are required to
KFINTECH Corporate Website: https://www.kfintech.com
RTA Website: https://ris.kfintech.com
be transferred to IEPF.
Investor Support Centre (DIY Link): https://ris.kfintech. xiv) Plant Locations
com/clientservices/isc
(1) Food Processing Machinery Division
xii) Dematerialization of Shares:
H-2, MIDC, Chikalthana I.A.
The Company’s Shares are compulsorily traded in the Post Box No. 720, Aurangabad - 431 210
electronic mode from June 26, 2000.The Company’s
shares are admitted into both the depositories i.e., (2) Auxiliary Business Division
National Securities Depository Limited (‘NSDL’) and Jalahalli, Bengaluru – 560 013
Central Depository Services (India) Limited (‘CDSL’).
As on 31st March 2024, the Company’s Shares xv) Address for correspondence:
representing 760227891 equity shares were held Registered Office at:
in dematerialized form and the balance 443863749 HMT Bhavan, No.59, Bellary Road,
shares were in the physical form. Under the Depository Bengaluru - 560 032, Karnataka, India

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

40
 Annual Report 2023 - 24

Annexure - 5
INDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
To the Members of HMT Limited - as applicable for the purpose of this certificate
1. We, N S V M & Associates, Chartered Accountants, and as per the Guidance Note on Reports or
the Statutory Auditors of HMT Limited (the Certificates for Special Purposes issued by the
‘Company’), have examined the compliance ICAI which requires that we comply with the
of conditions of Corporate Governance by the ethical requirements of the Code of Ethics issued
Company, for the year ended on 31 March 2024, by the ICAI.
as stipulated in regulations 17 to 27 and clauses 6. We have complied with the relevant applicable
(b) to (i) of regulation 46(2) and para C and D of requirements of the Standard on Quality Control
Schedule V of the SEBI (Listing Obligations and (SQC) 1, Quality Control for Firms that Perform
Disclosure Requirements) Regulations, 2015 (the Audits and Reviews of Historical financial
‘Listing Regulations’). Information, and Other Assurance and Related
Managements’ Responsibility Services Engagements.

2. The compliance of conditions of Corporate Opinion

Governance is the responsibility of the 7. Based on our examination of the relevant
Management. This responsibility includes the records and according to the information
design, implementation and maintenance of and explanations provided to us and the
internal control and procedures to ensure the representations provided by the Management,
compliance with the conditions of the Corporate we certify that the Company has Complied with
Governance stipulated in the Listing Regulations. the conditions of Corporate Governance as
Auditors’ Responsibility stipulated in regulations 17 to 27 and clauses
(b) to (1) of regulation 46(2) and Para C and D of
3. Our responsibility is limited to examining the Schedule-V of the Listing Regulations during the
Procedures and implementation thereof, adopted year ended March 31, 2024 subject to:
by the Company for ensuring compliance with
the conditions of the Corporate Governance. It is (a) Non-Compliance of the provisions of SEBI
neither an audit nor an expression of opinion on Regulation 17(1)(b), wherein at least half
the financial statements of the Company. of the Board of directors of the listed entity
shall consist of independent directors
4. We have examined the books of account and other whereas the Board of directors of the
relevant records and documents maintained company has not been constituted with
by the Company for the purposes of providing 50% of independent directors as on 31-03-
reasonable assurance on the compliance with 2024.
Corporate Governance requirements by the
Company. (b) Non-Compliance of provisions of SEBI
Regulation 18(1)(b) wherein at least two-
5. We have carried out an examination of the thirds of the members of audit committee
relevant records of the Company in accordance shall be independent directors whereas the
with the Guidance Note on Certification of company did not have Independent director
Corporate Governance issued by the Institute of during the financial year 2023-24.
the Chartered Accountants of India (the ICAI), the
Standards on Auditing specified under Section (c) Non-Compliance of provisions of
143(10) of the Companies Act, 2013, in so far SEBI Regulation 18(1)(d) wherein the

41
 Annual Report 2023 - 24

chairperson of the audit committee shall be directors whereas there are no independent
an independent director and he/she shall directors during the financial year 2023-24.
be present at Annual general meeting
(f) Non-Compliance of provisions of SEBI
to answer shareholder queries whereas
Regulation 19(2) wherein the chairperson
the Audit committee does not have
of the nomination and remuneration
independent director as Chairperson of the
committee shall be an independent director
Audit Committee throughout the year.
whereas there are no independent director
(d) Non-Compliance of provisions of SEBI in the company during the FY 2023-24.
Regulation 18(2)(b) wherein the quorum for
(g) Non-Compliance of provisions of SEBI
audit committee meeting shall either be two
Regulation 20(2A) wherein at least one
members or one third of the members of the
independent director shall be member of
audit committee, whichever is greater, with
the Stakeholders Relationship Committee
at least two independent directors whereas
whereas the committee did not have
the Audit Committee did not have any
independent director during the FY 2023-
independent director during the financial
24.
year 2023-24.
8. We state that such compliance is neither an
(e) Non-Compliance of provisions of SEBI
assurance as to the future viability of the
Regulation 19(1)(c) wherein at least two-
Company nor the efficiency or effectiveness
thirds of the directors shall be independent
with which the Management has conducted the
affairs of the Company.

for N S V M & Associates

Chartered Accountants
Firm registration number: 010072S

G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVH6204
Place: Bengaluru
Date: 30-08-2024

42
 Annual Report 2023 - 24

Annexure - 6
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
A. CONSERVATION OF ENERGY:

(i) The steps taken or impact on conservation of energy

• New LED Street light fittings (58 nos.), Energy saving LED bulbs (37 nos.) & LED tube lights (50
nos.) have been installed in place of old non-functional LED lights. Presently, there are no sodium
vapour lamps or mercury vapour lamps in the township.
• Existing old rheostat type fan regulators (15 nos.) have been replaced with electronic fan
regulators.
• 7 Nos of Air conditioners in Auxiliary Business Division, watch assembly and watch showroom,
were upgraded to air conditioners with 5 star BIS ratings.
(ii) Steps taken by the company for utilizing alternate sources of energy
• We have taken decision for installation of Rooftop Solar plant as well as to set up Solar plant on
open spaces.
(iii) The capital investment on energy conservation equipment
• Under initial stage & will be intimated later.

B. TECHNOLOGY ABSORPTION:

(i) Efforts made towards technology absorption:

• Based on the Collaboration Agreement Technology for Food Processing Machinery division,
various products have been manufactured over the years. The design of the FPA products needs
upgradation to compete with technologically upgraded products that are already developed and
made available in the market.
(ii) The benefits derived like product improvement, cost reduction, products development
or import substitution:

• Food processing Unit, Aurangabad has developed Continuous Butter Making Machine of
1000kg/h capacity, Milk Silo of 60kL capacity, Milk Homogenizer of 250L/h capacity and Road
Milk tankers of 9kL & 15kL capacities.
• We have updated manufacturing methods & technology to enhance production and to reduce
product cost.
(iii) Imported Technology during the last three years reckoned from the beginning of the
financial year:
• The company has not imported any technology during the last three years due to financial
constraint.

43
 Annual Report 2023 - 24

(iv) The expenditure incurred on Research and Development: NIL

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

Total Foreign Exchange earnings and outgo

• Earnings: Rs.51.30 Lakhs

• Outgo: Nil

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

44
 Annual Report 2023 - 24

Annexure - 7
MANAGEMENT’S REPLIES TO THE OBSERVATIONS MADE BY STATUTORY AUDITORS
ON THE ACCOUNTS OF HMT LIMITED FOR THE YEAR ENDED 31ST MARCH 2024

Audit Observations Management Replies

1. Food Processing Machinery Unit,
Aurangabad
a. As per information and explanation given to The inventory is valued using the weighted average
us with regard to Inventory valuation as stated cost method except in the case of consumables
in Note No. 2 (ii) (j) stock of raw material, it is comprising of low value items which is valued on
valued by adopting Weighted Average Cost estimated basis. Accounting Software is going to be
method. However, in the inventory statement installed in the store department. However, there is
provided for verification purpose, the correctness no material impact in the valuation of inventories.
of stock items rates and therefore, cost could
not be verified due to absence of sufficient and
appropriate audit evidence. Owing to the nature
of the Company’s records and in the absence
of sufficient audit evidence, we are unable to
ascertain if there is material departure from the
Weighted Average Cost Method adopted by the
company. We are also unable to ascertain its
consequent impact, if any, on the Standalone Ind
AS financial statements.
b. The revenue as per the Statement of profit and Audit observation is noted, and necessary action will
loss for the year ended March 2024 is Rs 3604.75 be taken to avoid such discrepancies in future.
lakhs. This includes a sum of Rs 105.88 lakhs
being the value of sales invoices accounted in
the month of March 2024 (F.Y 2023-24), raised
by HMT Limited food processing machinery
unit Aurangabad, on its customers. However as
per the records, the said invoices were raised
during the period, but dispatches were made
after 31-3-2024. The customer therefore has not
got control of the assets before 31-3-24. This is
in contravention of revenue recognition as per
Ind As 115, resulting in the overstatement of
revenue by Rs 105.88 lakhs, with consequent
overstatement of profit and understatement of
finished goods.

45
 Annual Report 2023 - 24

Audit Observations Management Replies

2. Auxiliary Business Division, Bengaluru
a. Non - receipt of balance Confirmations with Letters were sent through e mail and post to all
regard to Trade Receivables, Trade Payables, parties requesting them to confirm the balance
Other Current Assets and Other Current liabilities as on 31.03.2024. Reconciliations as per available
and hence, impact of the same on the standalone records is carried out on ongoing basis. Consequential
financial statements cannot be quantified. adjustment and provision are made wherever required
as per management assessment. But confirmation
was not received from the parties.

b. The Company records rental income generated The unit was formed to look after the Estate
from the buildings situated on the land which maintenance of the units at Bangalore. Consequently,
is not recorded in the books of accounts of the due to an increase in the maintenance cost of the
Company. On examination of records produced estate, the unit start generating the income. Post
for verification, the status of the land and its subsidization in 2000 of the Company the Land and
ownership is in the name of HMT Limited. buildings have been transferred to M/s. HMT Machine
Tools Limited, in line with the scheme of Arrangement.
Hence the land and buildings are not recorded in the
books of accounts of the unit. However, the mutation
of Title Deeds is yet to be done in the name of HMT
Machine Tools Limited, in the revenue records to
this effect. Fresh Lease deeds in respect of Land are
pending for the execution.
Since the ABD is looking after estate and employees
of Bangalore based offices including HMT Machine
Tools Division, Bangalore, the rental income recorded
in the unit books to maintain the estate etc.

c. Ind AS 40 requires the Company to obtain a fair The Company has not obtained any fair valuation of
valuation report of the investment properties the investment property from an independent valuer.
from a registered valuer as defined under Rule 2 Since the Company has not restated the financials
of Companies (Registered Valuers and Valuation) statement, the fair value has been disclosed based
Rules, 2017. However, we observe that the on the Guidance value of the Investment Property as
Company has not complied with the above on 31.03.2024. Further, as per clause 32 of Ind AS-
requirement as prescribed by Ind AS-40. 40, valuation of investment property by independent
valuer is not mandatory.

3. Corporate Head Office and Company as a

whole
(a) Non - receipt of balance Confirmations with Letters were sent through e mail and post to all
regard to Trade Receivables, Trade Payables, parties requesting them to confirm the balance
Other Current Assets and Other Current liabilities as on 31.03.2024. Reconciliations as per available
and hence, impact of the same on the standalone records is carried out on ongoing basis. Consequential
financial statements cannot be quantified. adjustment and provision are made wherever required
as per management assessment. But confirmation
was not received from the parties.

46
 Annual Report 2023 - 24

Audit Observations Management Replies

(b) IND AS 40 defines Investment Property as property The subject property is a owner-occupied property i.e.
held to earn rentals or for capital appreciation owned and occupied by the Company. The purpose
or both. It is observed that Corporate Head of short term let out is to earn rental to meet the
Office derives rental income partly from building cost of its maintenance. The same is not held even
(owned by the entity) which is not classified as for capital appreciation. Hence, being an owner-
Investment property in the standalone financial occupied property, it has been treated as PPE as per
statements. Ind AS16.
(c) Ind AS 40 requires the Company to obtain a fair The Company has not obtained any fair valuation of
valuation report of the investment properties the investment property from an independent valuer.
from a registered valuer as defined under Rule 2 Since the Company has not restated the financials
of Companies (Registered Valuers and Valuation) statement, the fair value has been disclosed based
Rules, 2017. However, we observe that the on the Guidance value of the Investment Property as
Company has not complied with the above on 31.03.2024 and disclosed in Financials statement
requirement as prescribed by Ind AS-40. No. no.38(B) Further, as per clause 32 of Ind AS-40,
valuation of investment property by independent
valuer is not mandatory.
(d) Ind-AS 109 requires an entity to apply expected There is no component of time value of money
credit loss (ECL) model for measurement and involved while recognising the revenue. However, the
recognition of impairment loss. However, as per provisions against trade receivables are recognised as
the information and explanation given to us no ECL per best judgement of the management based on the
matrix was prepared for the period under audit current available information. Provision made in the
for creating provision for loss allowance. Hence, books are reviewed on an ongoing basis.
we are unable to ascertain its impact, if any, on
the Standalone Ind AS financial statements.
(e) As per Ind AS-109, the Company has to recognize HMT Machine Tools Limited is having huge land bank
loss allowance for expected credit losses on a and the market value of these land is much higher
financial asset. In the instant case, we observe than the long outstanding receivable from them, ever
that the Company has long outstanding considering the guidance value. The same will be
receivable from HMT Machine Tools Limited in recovered from the proceeds on sale of land. As such
respect of which the Company has not recorded there is no ECL.
any expected credit losses. In our opinion as HMT
Machine Tools Ltd is incurring continuous losses
and has a negative net worth, the ability of the
Company to recover the amount receivable from
HMT Machine Tools Limited remains doubtful.
(f) As per Schedule III of Companies Act, 2013, trade The liabilities towards the procurements have
payables include all amounts due on account of been classified under Trade Payable and other than
purchase of goods and services received in the procurement as “Accrued expenses” grouped under
normal course of business. In the instant case, Other Current Liabilities. The practice is being followed
we observe that an amount of Rs 1510.99 lacs consistently. However, the same will be reviewed and
which is presently disclosed as Accrued expenses will accordingly be classified during 2024-25
under the head Other Current Liabilities must
be disclosed under Trade Payables. Further,
the Company must provide ageing analysis for
the amount disclosed under the head Accrued
Expenses.
47
 Annual Report 2023 - 24

Audit Observations Management Replies

(g) We draw your attention to Note No.53 wherein There are no transactions with struck off Companies
the Company has stated that it has no transactions u/s 248 of the Companies Act 2013 during the year as
with struck off companies under section 248 of per the available information.
The Companies Act, 2013. However, Company
has not provided appropriate audit evidence to
establish that they do not have such transactions

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

48
 Annual Report 2023 - 24

Annexure – 7A
MANAGEMENT’S REPLIES TO THE COMMENTS OF THE COMPTROLLER & AUDITOR
GENERAL OF INDIA UNDER SECTION 143(6)(B) OF THE COMPANIES ACT 2013 ON THE
CONSOLIDATED FINANCIAL STATEMENTS OF HMT LIMITED FOR THE YEAR ENDED
31ST MARCH 2024

Ref. C&AG Comments pertaining to HMT Machine Management Replies

Tools Limited – a wholly owned subsidiary of
HMT Limited
A) A. Comments on Profitability
A.1. Notes forming part of Financial
Statements
Contingent Liabilities (Note 35)
Audit observed from Board Agenda Notes List of Court cases was presented to Board. The Cases
that as on 1 September 2023 cases pending in will be reviewed in line with Ind AS-37 and disclosure
various Courts included one at Supreme Court, will be made under Contingent liability or provision
24 cases at High Court and 9 cases relating to will be recognized during FY 2024-25
Commercial and other matters. However, MTK
Unit has not provided the data on pending
court cases and in the absence of the data,
Audit could not verify the financial impact on
MTK Unit.
B B. Comments on Cash Flow
B.1 Cash Flow Statement: Significant
Accounting Policies Cash and Cash
Equivalents
Cash and cash equivalents of Rs. 1499.88 The Company has shown SURGE related accounts
lakhs included an amount of Rs. 72.59 lakhs separately Rs.49.92 Lakhs in escrow account and
pertaining to escrow accounts which was Rs.22.67 Lakhs included in total Current accounts of
incorrectly shown as Rs 49.92 lakh. The amount Rs.1197.93 Lakhs under cash and cash equivalent,
of Rs 72.59 lakh pertains to unspent balances in Note Number 7-A. Footnote has already been
of grant received from the Government of India inserted under both Cash & Cash equivalent and Cash
for the Technology Innovation Programme, Flow statement in Annual Report FY 23-24.
(SURGE). As these balances are not freely
available to the company, disclosure is required
to be made in this regard in the Cash Flow
Statement. This resulted in a non-compliance
to provisions of para 48 of IND AS-7.

49
 Annual Report 2023 - 24

C C. Comments on Accounting Policies

C.1 As per the terms of contracts, 10 per The Company will review and issue necessary
cent of payment is to be released to the MTK guidelines on revenue recognition by Units.
unit of the Company after installation, testing
of machines and their being found to be
working satisfactorily. Further, the unit has
to assist in finalization of civil works drawing
required for machinery foundations. However,
the unit has recognized revenue for the entire
amount of the order without completing its
performance obligations. This has resulted in
incorrect revenue recognition by the unit as
well as the Company. Further, the Company
needs to rectify its policy in this regard.
D D. Comments on Disclosure
D.1 Notes to Accounts
a) The Government of Kerala issued (04 a. Necessary disclosure will be made under notes
November 2015) orders for surrender forming part of standalone financial statement
of excess land of 251.40 acres as per during the FY 2024-25. Presently, the case is still
Hon’ble High Court orders. However, pending at Supreme Court.
HMT Machine Tools Limited, Kalamassery
Unit (MTK) had filed a special leave
petition before the Hon’ble Supreme
Court, challenging the Government of
Kerala Revenue department order for
resumption of 251.40 acres of land from
MTK and Hon’ble Supreme Court passed
(15.01.2016) the order to maintain status
quo until further orders. The matter is
pending at Court as of March 2024 but
the same was not disclosed in the notes
to financial statements. Non-disclosure of
pending case at Court has resulted in notes
to financial statements being deficient to
that extent.
b) The Roads and Bridges Development b. Necessary disclosure will be made under notes
Corporation of Kerala Limited requested (30 forming part of standalone financial statement
November 2019) the MTK Unit for transfer during the FY 2024-25. Supreme Court under
of a portion of above land for construction a modified interim order has permitted
of Airport — Seaport Highway Phase-II construction of road subject to Govt of Kerala
based on Govt. of Kerala resumption orders. depositing the compensation with High Court of
Kerala.

50
 Annual Report 2023 - 24

Subsequently, Govt of Kerala requested

(16.06.2019) the Department of Heavy
Industry, Gol for allowing the construction
activities and for transfer of land
admeasuring 1.6352 hectare on urgent basis.
MTK Unit arrived at land compensation of
₹16.34 crore for transferring the above
land. However, status in this regard was not
disclosed by the unit.
c) As per the disclosure requirement of c. The Company is doing actuarial valuation of
Para No. 139 (b) of Ind AS-19, an entity defined benefits but clearing all the defined
shall disclose a description of the risks to liabilities as per availability of Funds. The same
which the defined benefit plan exposes will be disclosed during the FY 2024-25.
the entity, focused on any unusual, entity
specific or plan specific risks, and of any
significant concentrations of risk. However,
Management has not made any disclosures
in this regard.

For and on behalf of the For and on behalf of the Board of Directors
Comptroller & Auditor General of India

(C. Sailaja) (Rajesh Kohli)

Director General of Commercial Audit Chairman & Managing Director
(Addl. Charge)
DIN: 10333951
Date: 21.10.2024 Date: 25.10.2024
Place: Hyderabad Place: Bengaluru

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 Annual Report 2023 - 24

Annexure - 8
Form No. MR-3

Secretarial Audit Report for the financial year ended 31st March 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To
The Members
H.M.T. LIMITED
(CIN: L29230KA1953GOI000748)
HMT Bhavan, 59 Bellary Road, Bangalore 560032

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to
good corporate practices by H.M.T. Limited (CIN: L29230KA1953GOI000748) (hereinafter called the Company).
Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate
conducts / statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other
records maintained by the Company and also the information provided by the Company, its officers, agents
and authorized representatives during the conduct of Secretarial Audit, the explanations and clarifications
given to us and the representations made by the Management, the company has, during the audit period
covering the financial year ended on 31st March 2024 generally complied with the statutory provisions listed
hereunder and also that the Company has proper Board - processes and compliance mechanism in place to
the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by
H.M.T. Limited for the financial year ended on 31st March 2024 and made available to me, according to the
provisions of:
i. The Companies Act, 2013 (‘the Act’) and the Rules made thereunder;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder;
iii. The Depositories Act, 1996 and the Regulations and Bye- laws framed thereunder;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’) to the extent applicable to the Company: -
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

52
 Annual Report 2023 - 24

c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018; (Not applicable during the audit period);
d. The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021; (Not applicable during the audit period);
e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
(Not applicable during the audit period);
f. The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities)
Regulations, 2021; (Not applicable during the audit period);
g. The Securities and Exchange Board of India (Registrars to an issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act, 2013 and dealing with client;
h. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021; - (Not
applicable during the audit period)
i. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; - (Not applicable
during the audit period) and
j. The Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018.
I have also examined compliance with the applicable clauses of the following:
i. Secretarial Standards issued by The Institute of Company Secretaries of India.
ii. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulation,
2015 (LODR).
During the year under review, the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards etc. mentioned above.
I further report that having regard to the compliance system prevailing in the Company and on the examination
of relevant documents and records in pursuance thereof, on test-check basis, compliance certificates made
by the heads of the departments and submitted to the Board of Directors of the Company, the Company
has substantially complied with the following applicable laws/ guidelines / rules applicable specifically to the
Company:
i. Guidelines issued by the Department of Public Enterprises (DPE)
ii. Guidelines issued by the Ministry of Heavy Industries
iii. Orders/Regulations issued by Government of India from time to time
I further report that, the compliance by the Company of applicable financial laws such as direct and indirect tax
laws and maintenance of financial records and books of accounts have not been reviewed in this audit since
the same have been subject to review by the statutory financial auditors, tax auditors and other designated
professionals.

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 Annual Report 2023 - 24

A) Observations / Non-Compliances / Adverse Remarks / Qualifications in respect of Companies

Act, 2013 and Rules made there under are as follows:

i. the company has not complied with the provisions of requirements of Section 149 (4) of the Act
Companies Act, 2013, with respect to composition of Board of Directors of the Company for not having
sufficient independent directors on the Board during the FY 2023-24.
ii. The Company has not complied with the provisions of Section 177 (2) of the Companies Act, 2013 with
respect to the composition of Audit Committee of the Board during the FY 2023-24.
iii. The Company has not complied with the provisions of Section 178 (1) of the Companies Act, 2013 with
respect to the composition of Nomination and Remuneration Committee of the Board during the FY
2023-24.
iv. The Company has not complied with the provisions of Section 135 (1) of the Companies Act, 2013 with
respect to the composition of CSR Committee of the Board during the FY 2023-24.
B) Observations / Non-Compliances / Adverse Remarks / Qualifications in respect of Compliance
with SEBI (Listing Obligations & Disclosure Requirements) (LODR) Regulations, 2015 are as
follows:
i. The Company has not complied with the provisions of Regulation 17 (1) of SEBI (LODR) 2015 with respect
to Composition of Board of Directors of the Company {for not having sufficient independent directors
including appointment of independent woman director on the Board} during the FY 2023-24.
ii. The Company has not complied with the provisions of Regulation 17 (2A) of SEBI (LODR) 2015 with
respect to Quorum of Board meetings held during the FY 2023-24.
iii. The Company has not complied with the provisions of Regulation 18 (1) & 18 (2) (b) of SEBI (LODR), 2015
with respect to composition of Audit Committee, Chairperson of Committee & Quorum during the FY
2023-24.
iv. The Company has not complied with the provisions of Regulation 19(1)/ 19(2) of SEBI (LODR), 2015 with
respect to composition & Chairperson of Nomination and Remuneration Committee during the FY 2023-
24.
v. The Company has not complied with the provisions of Regulation 20 (2A) of SEBI (LODR), 2015 with
respect to composition of Stakeholders Relationship Committee during the FY 2023-24.
vi. The Company has not complied with the provisions of Regulation 21(2) of SEBI (LODR), 2015 with respect
to composition of Risk Management Committee during the FY 2023-24.
vii. The Company has not complied with the provisions of Regulation 33 of SEBI (LODR), 2015 with respect
to submission of Audited Financial Results for the 2022-23 to the Stock Exchanges by submitting with a
delay of 51 days.
viii. The Company has not complied with the provisions of Regulation 24(1) of SEBI (LODR), 2015 of appointing
atleast one Independent Director of the listed entity on the Board of its unlisted material subsidiary.

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 Annual Report 2023 - 24

I further report that:

a. The Board of Directors of the Company is duly constituted subject to the observations mentioned herein
above and the changes in the composition of the Board of Directors that took place during the period
under review were carried out in compliance with the provisions of the Companies Act, 2013.
b. Adequate notice was given to all the directors to schedule the Board Meetings, agenda and detailed notes
on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation
at the meeting.
c. All decisions at Board Meetings are carried out by requisite majority as recorded in the minutes of the
meetings of the Board of Directors as the case may be.
d. I further report that as represented by the Company and relied upon by me there are adequate systems
and processes in the Company commensurate with the size and operations of the Company to monitor
and ensure compliance with applicable laws, rules, regulations and guidelines.
e. I further report that during the audit period, there are no such events / actions having a major bearing on
the Company’s affairs in pursuance of the above referred laws, Rules, Regulations, Guidelines, Standards
taken place. However, some of the events took place during the year are enlisted below:
1. The issued capital of the Company was reduced from Rs.1,204.09 Crores to Rs.355.60 Crores vide
NCLT Order dated 16th October 2018. However, the reduction of share capital has not been updated
in the records of Stock Exchanges / Depositories. They are pending for procedural compliances which
are in the process.
2. Pursuant to the approval of the Cabinet Committee of Economic Affairs, Government of India, the
closure of its subsidiary viz., HMT Watches Limited is under process.
3. During the year under review, BSE & NSE has imposed an aggregate fine of Rs. 58,68,140/- each
for non-compliance under Regulation(s) 17(1), 17(2A), 18(1) & 18 (2) (b), 19(1) / 19 (2), 20(2) / 20
(2A), 21(2) & 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 related to composition of Board, Committees of the Board and
Delay in submission of audited financial results to the Stock Exchanges.
The Company has submitted representation to both the stock exchanges for waiver of fines as the
appointment of Independent Directors in the Government Companies has to be made by the concerned
Administrative Department of the Government of India and also for delay in submission of audited financial
results to the Stock Exchanges. The waiver applications were pending before both the exchanges.

Place: Bengaluru D VENKATESWARLU

Date: 24th August 2024 Company Secretary
FCS No. 8554 :: C P No. 7773
UDIN: F008554F001036218
PR No: 1617 / 2021

This Report is to be read along with my letter of even date which is annexed as Annexure A and Forms an
integral part of this report.

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 Annual Report 2023 - 24

“Annexure A”

To
The Members
H.M.T. LIMITED
(CIN: L29230KA1953GOI000748)
HMT Bhavan, 59 Bellary Road, Bangalore 560032

My report of even date is to be read along with this letter.

1. Maintenance of secretarial records is the responsibility of the management of the Company. My
responsibility is to express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the Secretarial records. The verification was done on test basis
to ensure that correct facts are reflected in secretarial records. I believe that the processes and practices,
I followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the
company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules
and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is
the responsibility of the management. My examination was limited to the verification of procedures on
test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the Company.

Place: Bengaluru D VENKATESWARLU

Date: 24th August 2024 Company Secretary
FCS No. 8554 :: C P No. 7773
UDIN: F008554F001036218
PR No: 1617 / 2021

56
 Annual Report 2023 - 24

Annexure - 9
MANAGEMENT’S REPLIES TO THE OBSERVATIONS MADE BY SECRETARIAL AUDITOR
ON THE SECRETARIAL AUDIT OF HMT LIMITED FOR THE YEAR ENDED 31ST MARCH
2024

Ref. SECRETARIAL AUDITORS’ OBSERVATIONS MANAGEMENT REPLIES

A) i) The Company has not complied with the The term of Shri. Vishweshwar Bhat & Shri. Ramji Lal
provisions of requirements of section 149 as Independent Directors completed on 26.01.2023.
(4) of the Companies Act, 2013, with respect Administrative Ministry has been requested to
to composition of Board of Directors of the appoint requisite number of Independent Directors
Company for not having sufficient independent on the Board of Directors of the Company to comply
directors on the Board during the FY 2023-24. with the provisions of the Companies Act, 2013.
ii) The Company has not complied with the
provisions of Section 177 (2) of the Companies
Act, 2013 with respect to the composition of
Audit Committee of the Board during the FY
2023-24
As and when the Independent Directors will
iii) The Company has not complied with the
be appointed on the Board of Directors, Audit
provisions of Section 178 (1) of the Companies
Committee, Nomination and Remuneration
Act, 2013 with respect to the composition of
Committee & CSR Committee of the Board shall
Nomination and Remuneration Committee of
be reconstituted accordingly to comply with the
the Board during the FY 2023-24.
provisions of the Companies Act, 2013.
iv) The Company has not complied with the
provisions of Section 135 (1) of the Companies
Act, 2013 with respect to the composition of
CSR Committee of the Board during the FY
2023-24.
B) i) The Company has not complied with the Term of Smt. Neera Tomar as Independent Women
provisions of Regulation 17 (1) of SEBI (LODR) Director completed on 17th February 2022. Further,
2015 with respect to Composition of Board the term of Shri. Vishweshwar Bhat & Shri. Ramji Lal
of Directors of the Company {for not having as Independent Directors completed on 26.01.2023.
sufficient independent directors including Administrative Ministry has been requested to
appointment of independent woman director appoint four Independent Directors including one
on the Board} during the FY 2023-24. Independent Woman Director on the Board of
ii) The Company has not complied with the Directors of the Company. On appointment, the
provisions of Regulation 17 (2A) of SEBI quorum shall be ensured in Board Meetings to
(LODR) 2015 with respect to Quorum of Board comply with requirements of Listing Regulations.
meetings held during the FY 2023-24.

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 Annual Report 2023 - 24

Ref. SECRETARIAL AUDITORS’ OBSERVATIONS MANAGEMENT REPLIES

iii) The Company has not complied with the
provisions of Regulation 18 (1) & 18 (2) (b) of
SEBI (LODR), 2015 with respect to composition
of Audit Committee, Chairperson of Committee
& Quorum during the FY 2023-24.
iv) The Company has not complied with the
provisions of Regulation 19(1)/ 19(2) of SEBI
(LODR), 2015 with respect to composition & As and when the Independent Directors will be
Chairperson of Nomination and Remuneration appointed on the Board of Directors, Committees
Committee during the FY 2023-24. of the Board shall be reconstituted & quorum shall
v) The Company has not complied with the be ensured with the attendance of Independent
provisions of Regulation 20 (2A) of SEBI Directors in the Committee Meetings to comply with
(LODR), 2015 with respect to composition of Listing Regulations.
Stakeholders Relationship Committee during
the FY 2023-24.
vi) The Company has not complied with the
provisions of Regulation 21(2) of SEBI (LODR),
2015 with respect to composition of Risk
Management Committee during the FY 2023-
24.
vii) The Company has not complied with the HMT Limited & its Subsidiaries have units across
provisions of Regulation 33 of SEBI (LODR), India in Bengaluru, Pinjore, Aurangabad, Hyderabad,
2015 with respect to submission of Audited Kalamassery, Ajmer and Ranibagh. Audit at various
Financial Results for the 2022-23 to the Stock units were under progress and the Company made
Exchanges by submitting with a delay of 51 its best efforts to complete and submitted the
days. financial results to the exchanges on 20th July, 2023.
Hence, there was delay of 51 days in submission of
Audited Financial Results for the quarter and year
ended 31.03.2023.
viii) The Company has not complied with the Administrative Ministry has been requested to
provisions of Regulation 24(1) of SEBI (LODR), appoint one Independent Director of the Company as
2015 of appointing atleast one Independent Director on the Board of unlisted material subsidiary
Director of the listed entity on the Board of its to comply with Listing Regulations.
unlisted material subsidiary.

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

58
 Annual Report 2023 - 24

Annexure - 10

FORM NO. MR 3
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and
Rule no. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To
The Members
HMT Machine Tools Limited
No. 59, Bellary Road, Bangalore, Karnataka, India – 560032

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions
and the adherence to good corporate practices by HMT Machine Tools Limited bearing
CIN: U02922KA1999GOI025572 having its registered office at No. 59, Bellary Road, Bangalore – 560032,
(hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner that provided to us a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion
thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other
records maintained by the Company and also the information provided by the Company, its officers, agents
and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion,
the Company has, during the audit period covering the financial year ended on March 31, 2024 complied
with the statutory provisions listed hereunder and also that the Company has proper Board-processes and
compliance-mechanism in place to the extent, in the manner as applicable to it and subject to the reporting
made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended on March 31, 2024, according to the provisions of:
(i) The Companies Act, 2013 and the rules made thereunder.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder – Not applicable
to the Company, as it is an unlisted public company.
(iii) The Depositories Act, 1996 and the Regulations and byelaws framed thereunder – Not applicable to the
Company, as company’s equity shares are maintained in physical form during the audit period under
review.
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of
Overseas Direct Investment and External Commercial Borrowings, if any.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above.

59
 Annual Report 2023 - 24

We further report that the Board of Directors of the Company is duly constituted with proper balance of
Executive Directors, Non-Executive Directors. The changes in the composition of the Board of Directors that
took place during the period under review were carried out in compliance with the provisions of the Act
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda
were sent at least seven days in advance, and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members’ views are captured and recorded as part
of the minutes.
We further report that there are adequate systems and processes in the company commensurate with the size
and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and
guidelines.
We further report that during the audit period the company held no such events/actions having a major bearing
on the company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.
In general, it was observed that the Company, being a Government Company and subject to audit by the
Comptroller and Auditor General of India, is maintaining all the required records properly and have established
systems and procedures for complying with various applicable laws.
We further report that during the said Financial Year, the Company has complied with the provisions of the Acts,
Rules, Regulations, Guidelines, Standards, etc., mentioned in the foregoing paragraphs except the followings:
1. Being a material subsidiary of a Listed Entity, there shall be at least one Independent Director of its Holding
Company) on its Board under Regulation 24(1) of SEBI (LODR) Regulations 2015.The Company is yet to
comply with this Regulation.
2. During the Audit, it was observed that the Company has not made timely payment of Employees related
statutory dues in several instances and as a result, defaulted the provisions under Employees’ Provident
Funds and Miscellaneous Provisions Act,1952, Payment of Gratuity Act, 1972 etc. and received Notices
from statutory Authorities. Besides, there are ongoing litigations with various courts of law.

For S Kedarnath & Associates

Swayambhu Kedarnath
M. No.: F3031 | CoP No.: 4422
ICSI FRN: S2010KR128100
ICSI PRN: 1437/2021
ICSI UDIN: F003031F001105176
Date: September 02, 2024
Place: Bengaluru

This report is to be read with our letter annexed to the secretarial audit report and forms an
integral part of the report.

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 Annual Report 2023 - 24

ANNEXURE TO SECRETARIAL AUDIT REPORT

ISSUED BY COMPANY SECRETARY IN PRACTICE

To
The Members
HMT Machine Tools Limited
No. 59, Bellary Road, Bangalore – 560032

Our report of even date is to be read along with this letter:

1. Maintenance of secretarial record is the responsibility of the management of the company. Our
responsibility is to express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the Secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,
we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of
the company.
4. Wherever required, we have obtained the Management representation about the compliance of laws,
rules and regulations and happening of events, etc. The compliance under the industry specific laws were
examined based on the list of applicable laws provided by the company
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is
the responsibility of management. Our examination was limited to the verification of procedures on test
basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the company.

For S Kedarnath & Associates

Swayambhu Kedarnath
M. No.: F3031 | CoP No.: 4422
ICSI FRN: S2010KR128100
ICSI PRN: 1437/2021
ICSI UDIN: F003031F001105176

Date: September 02, 2024

Place: Bengaluru

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 Annual Report 2023 - 24

Annexure - 11
MANAGEMENT’S REPLIES TO THE OBSERVATIONS MADE BY SECRETARIAL AUDITOR
ON THE SECRETARIAL AUDIT OF HMT MACHINE TOOLS LIMITED FOR THE YEAR
ENDED 31ST MARCH 2024
Ref. SECRETARIAL AUDITORS’ OBSERVATIONS MANAGEMENT REPLIES
01 Being a material subsidiary of a Listed Entity, The nomination and appointment of all categories
there shall be at least one Independent Director of Directors are made by the Government of India
of its Holding Company on its Board under in accordance with the laid down Guidelines. The
Regulation 24(1) of SEBI (LODR) Regulations subject matter of appointment of Independent
2015.The Company is yet to comply with this director falls under the purview of the Government
Regulation. of India. The Administrative Ministry has been
requested to appoint Directors to comply with the
provisions of Companies Act 2013.
02 During the Audit, it was observed that the The company is incurring losses from several years
Company has not made timely payment of and hence unable to make timely payment of the
Employees related statutory dues in several statutory dues as observed by the Auditors. The
instances and as a result, defaulted the Company is taking all efforts to generate funds from
provisions under Employees’ Provident Funds Internal operations and address the timely payment
and Miscellaneous Provisions Act,1952, of the statutory dues.
Payment of Gratuity Act, 1972 etc. and received
Notices from statutory Authorities. Besides,
there are ongoing litigations with various
courts of law.

For and on behalf of the Board of Directors

Place: Bengaluru (Rajesh Kohli)

Date: 25.10.2024 Chairman & Managing Director
(Addl. Charge)
DIN: 10333951

62
 Annual Report 2023 - 24

Annexure - 12
Form No. MR 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2024
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (LODR) 2015]
To,
The Members,
H.M.T. (INTERNATIONAL) LIMITED
No.59, Bellary Road, Bangalore- 560032, Karnataka, India
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by H.M.T. (INTERNATIONAL) LIMITED (hereinafter called ‘the Company’ having its
CIN: U33309KA1974GOI002707). Secretarial Audit was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other
records maintained by the Company, the information provided by the Company, its officers, agents and
authorized representatives during the conduct of Secretarial Audit, we hereby report that in our opinion,
the Company has during the audit period covering the financial year ended on 31st March 2024 (hereinafter
referred to as (“the audit period”) complied with the statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner
applicable to it and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended 31st March 2024, according to the provisions of:
i. The Companies Act, 2013 (the Act) and the Rules made thereunder;
ii. The Depositories Act, 1996 and the Rules made thereunder; Not applicable to the Company, as company’s
equity shares are maintained in physical form for the period under review.
iii. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent
of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; Not
applicable for the period under report.
iv. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations,
1993; Not applicable to the Company, as company’s equity shares are maintained in physical form for
the period under review.
v. Other laws as applicable to the Company; As reported to us, the company being a trading Company has
complied with all the applicable laws during the period under review including Sexual Harassment of
Women at Workplace (Prevention and Prohibition and Redressal) Act, 2013.
We have also examined compliance with the applicable clauses of Secretarial Standards with regard to meetings
of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of
India (ICSI);

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 Annual Report 2023 - 24

Accordingly, we state that during the period under review there were adequate systems and processes in
place to monitor and ensure compliance with various applicable laws and that the Company has complied
with the provisions of the Acts, Rules, Regulations, Guidelines, Standards, etc., mentioned above.
Being an unlisted public company during the period under review, the following Acts, Rules, Guidelines and
Regulations were Not Applicable:
i. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder including
amendments thereof;
ii. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act’):
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011 including amendment thereof;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 including
amendment thereof;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018 including amendment thereof;
d) The Securities and Exchange Board of India (Share Based Employee Benefits & Sweat Equity)
Regulations, 2021;
e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities)
Regulations, 2021 including amendment thereof;
f) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 including
amendment thereof;
g) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 and amendment
thereof;
h) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 including amendment thereof;
i) Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009
including amendment thereof and
j) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable
Preference Shares) Regulation, 2013 and including amendment thereof.
We have not examined compliance by the company with respect to:
a) Applicable financial laws, like direct and indirect tax laws, maintenance of financial records, etc., since
the same have been subject to review by statutory (financial) auditors, tax auditors and other designated
professionals.
b) Listing Agreement with the Stock Exchange(s), as the company is an Unlisted Public Company, and is a
wholly owned subsidiary of a Listed Government Company and a material subsidiary of HMT Limited.

64
 Annual Report 2023 - 24

c) As informed by the company the Industry specific laws / general laws as applicable to the company
has been complied with. The management has also represented and confirmed that all the laws, rules,
regulations, orders, standards and guidelines as are specifically applicable to the Company relating to
Industry / Labour, etc., have been complied with.
We further report that -
The Board of Directors of the Company was duly constituted. The changes in the composition of the Board of
Directors that took place during the period under review were carried out in compliance with the provisions
of the Act except the following:
During the year under report, it was observed that pursuant to Regulation 24(1) of the SEBI (LODR)
Regulations, 2015, at least one independent director on the Board of Directors of the listed entity to be a
director on the board of directors of an unlisted material subsidiary was not complied with.
However, Smt. Anju Makhija was appointed by the Company as an Independent Director effective from
10.06.2023 as per the Government of India, Ministry of Heavy Industries Order dated 08th June, 2023. Earlier,
Shri. Velpandiyan ceased to be a Director (Independent Director) of the company from 26.01.2023 due to
retirement of his term.
Adequate notices were given to all Directors to schedule the Board Meetings, Agenda and detailed notes on
Agenda were sent in advance and a system exists for seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful participation at the Meeting.
As per the minutes of the Board Meetings duly recorded and signed by the Chairman, the decisions at the
Meetings were unanimous and no dissenting views have been recorded.
There were no amendment/modification of the Memorandum and Articles of Association of the Company
during the period under report.
We also report that based on the information provided and representations made by the Company, there were
adequate systems and processes in the Company commensurate with the size and operations of the Company
to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that, during the audit period there were no other specific events/actions in pursuance of
the above referred laws, rules, regulations, guidelines, etc. having a major bearing on the Company’s affairs in
pursuance of the above referred laws, rules etc.

For G Haritha & Associates

G. Haritha
Place: Bengaluru Company Secretary in Practice
Date: 26th June, 2024 FCS 5521 - CP No.10749
PR: 1434/2021
UDIN: F005521F000623556

Note:
This Report is to be read with ‘Annexure - A’ which forms an integral part of this Report.

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 Annual Report 2023 - 24

‘Annexure - A’

To,
The Members,
H.M.T (INTERNATIONAL) LIMITED
No.59, Bellary Road, Bangalore- 560032, Karnataka, India
Our Report of even date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the Management of the Company. Our
responsibility is to express an opinion on the secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of secretarial records. The verification was done on test basis
to ensure that correct facts are reflected in the secretarial records. We believe that the processes and
practices we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of
the Company like, Income Tax, GST, Customs, etc.
4. Wherever required, we have obtained the Management representations about the compliance of
applicable Laws, Rules and Regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards
is the responsibility of the Management in terms of Section 134 (5) (f) of the Companies Act, 2013. Our
examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the Management has conducted the affairs of the Company.
7. The audit was conducted based on the verification of the Company’s books, papers, minutes books,
forms and returns filed, documents and other records furnished by them or obtained from the Company
electronically and also the information provided by the company and its officers by audio and/or visual
means.

For G Haritha & Associates

G. Haritha
Place: Bengaluru Company Secretary in Practice
Date: 26th June, 2024 FCS 5521 - CP No.10749
PR: 1434/2021
UDIN: F005521F000623556

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 Annual Report 2023 - 24

Annexure - 13

MANAGEMENT’S REPLIES TO THE OBSERVATIONS MADE BY SECRETARIAL AUDITOR

ON THE SECRETARIAL AUDIT OF HMT (INTERNATIONAL) LIMITED FOR THE YEAR
ENDED 31ST MARCH 2024
Ref. SECRETARIAL AUDITORS’ OBSERVATIONS MANAGEMENT REPLIES
01 During the year under report, it was observed Administrative Ministry has been requested to
that pursuant to Regulation 24(1) of the appoint one Independent Director of HMT Limited,
SEBI (LODR) Regulations, 2015, at least one Holding Company as Director on the Board of HMT
independent director on the Board of Directors (International) Limited, unlisted material subsidiary
of the listed entity to be a director on the board to comply with listing regulations. However, during
of directors of an unlisted material subsidiary the FY2023-24, there are no Independent Directors
was not complied with. on the Board of HMT Limited.
However, Smt. Anju Makhija was appointed
by the Company as an Independent Director
effective from 10.06.2023 as per the
Government of India, Ministry of Heavy
Industries Order dated 08th June, 2023. Earlier,
Shri. Velpandiyan ceased to be a Director
(Independent Director) of the company from
26.01.2023 due to retirement of his term.

For and on behalf of the Board of Directors

(Rajesh Kohli)
Chairman & Managing Director
Place: Bengaluru
(Addl. Charge)
Date: 25.10.2024
DIN: 10333951

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 Annual Report 2023 - 24

Annexure - 14

DECLARATION BY THE CHAIRMAN & MANAGING DIRECTOR

WITH THE COMPANY’S CODE OF CONDUCT

This is to certify that:
The Company has adopted a Code of Conduct for its employees including the Chairman & Managing Director
and Senior Management. A Code of Conduct for the Board Members and Senior Management and for the Part-
time Directors has been approved by the Board.
The said Code of Conduct has been uploaded on the website of the Company and has also been circulated to
the Board Members and the Senior Management Personnel of the Company; and,
All Board Members, both Full time and Part-time and the Senior Management have affirmed compliance of the
said Code of Conduct, for the year ended March 31, 2024.

(Rajesh Kohli)
Chairman & Managing Director
Date: 25.10.2024 (Addl. Charge)
Place: Bengaluru

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 Annual Report 2023 - 24

Annexure - 15

­­CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C Clause (10)(i) of the

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To
The Members of
H.M.T. LIMITED
(CIN: L29230KA1953GOI000748)
HMT Bhavan, 59 Bellary Road,
Bangalore-560032
I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of
H.M.T Limited having CIN: L29230KA1953GOI000748 and registered office at HMT Bhavan, 59 Bellary Road,
Bangalore-560032 (hereinafter referred to as ‘the Company’), produced before me by the Company for the
purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Clause
10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015.
In my opinion and to the best of my knowledge and based on the information and explanations furnished to
me by the Company & its officers and according to the following verifications made:
i. Documents available on the website of the Ministry of Corporate Affairs;
ii. Verification of Directors Identification Number (DIN) status on the website of the Ministry of Corporate
Affairs;
iii. Disclosures provided by the Directors to the Company; and
iv. Debarment list of the Bombay Stock Exchange and the National Stock Exchange,
I hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year
ending on 31st March 2024 have been debarred or disqualified from being appointed or continuing as Directors
of the Company by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other
Statutory Authority as on 31st March 2024.
Date of appointment
S No Name of the Director DIN
in the Company
1. Mr. Pankaj Gupta1 09716028 25/08/2022
2. Dr. Renuka Mishra2 08635835 12/09/2022
3. Ms. Arti Bhatnagar 10065528 14/02/2023
4. Ms. Rita Saxena3 10294769 25/08/2023
5. Ms. Mukta Shekhar4 10118859 04/09/2023
6. Mr. Rajeev Singh5 10447679 30/12/2023
7. Mr. Krishnaswami Ravishankar6 10540509 08/03/2024

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 Annual Report 2023 - 24

1. Ceased from the post of Chairman & Managing Director (Additional Charge) w.e.f. 25.11.2023
2. Ceased from the post of Government Nominee Director w.e.f. 04.09.2023
3. Appointed as the Director (Finance) (Additional Charge) w.e.f. 25.08.2023
4. Appointed as Government Nominee Director w.e.f. 04.09.2023
5. Appointed as Chairman & Managing Director (Additional Charge) w.e.f 30.12.2023 & ceased w.e.f. 08.03.2024
6. Appointed as Chairman & Managing Director (Additional Charge) w.e.f. 08.03.2024

Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification.
This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

Place: Bengaluru D VENKATESWARLU

Date: 24-08-2024 Practicing Company Secretary
FCS: 8554 :: CP: 7773
UDIN: F008554F001036119
PR No: 1617 / 2021

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 Annual Report 2023 - 24

Annexure - 16
CEO & CFO CERTIFICATION
This is to certify to the Board of Directors of HMT Limited that:
(a) We have reviewed the Financial Statements and the cash flow statement for the year 2023-24 and that to
the best of our knowledge and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(ii) these statements together present a true and fair view of the Company’s affairs and are in compliance
with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during
the year that are fraudulent, illegal or in violation of the company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we
have evaluated the effectiveness of the internal control systems of the Company pertaining to financial
reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or
operation of such internal controls, if any, of which we are aware and the steps we have taken or propose
to take to rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee regarding:
(i) Any significant changes in internal control over financial reporting during the year;
(ii) Significant changes in accounting policies during the year and that the same have been disclosed in
the notes to the financial statements; and
(iii) Any instances of significant fraud of which we have become aware and the involvement therein, if
any, of the management or an employee having a significant role in the Company’s internal control
system over financial reporting.
For HMT Limited

Aparna R, CFO Rajesh Kohli, CMD/CEO

Date: 09th August, 2024

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 Annual Report 2023 - 24

standAlone
FINANCIAL
STATEMENTS

72
 Annual Report 2023 - 24

REVISED INDEPENDENT AUDITORS’ REPORT

(Issued consequent to provisional comments by Director, Indian Audit and Accounts Department,
office of the Director General of Commercial Audit, Hyderabad vide DGCA/A/C/Desk/2023-24/
HMT/1.19/516 dated 18-09-2024 and it supersedes our Independent Audit report dated 09-08-
2024)

To the Members of HMT Limited - Basis for Qualified Opinion:

Report on the Audit of the Standalone 1. Food Processing Machinery Unit,
Financial Statements Aurangabad
Qualified Opinion: (a) As per information and explanation given
We have audited the standalone financial statements to us with regard to Inventory valuation
of HMT Limited (“the Company”), which comprise the as stated in Note No. 2 (ii) (j) stock of
Balance Sheet as at 31st March 2024, and the Statement raw material, it is valued by adopting
of Profit and Loss (including Other Comprehensive Weighted Average Cost method. However,
Income) for the year then ended 31 March 2024, the in the inventory statement provided for
Statement of Changes in Equity and the Statement of verification purpose, the correctness of
Cash Flows for the year ended on that date and notes stock items rates and therefore, cost could
to the standalone financial statements, including a not be verified due to absence of sufficient
summary of significant accounting policies and other and appropriate audit evidence. Owing to
explanatory information. the nature of Company’s records and in the
absence of sufficient audit evidence, we
In our opinion and to the best of our information and are unable to ascertain if there is material
according to the explanations given to us, except for departure from the Weighted Average Cost
the basis of Qualified Opinion section of our report, Method adopted by the company. We are
the aforesaid standalone financial statements give also unable to ascertain its consequent
the information required by the Act in the manner so impact, if any, on the Standalone Ind AS
required and give a true and fair view in conformity financial statements.
with the accounting principles generally accepted in
India, in the case of b) The revenue as per the Statement of profit
and loss for the year ended March 2024 is
(a) Standalone Balance Sheet, of the state of affairs Rs 3604.75 lakhs. This includes a sum of Rs
of the standalone as at 31st March, 2024 and 105.88 lakhs being the value of sales invoices
accounted in the month of March 2024
(b) Statement of Profit and Loss (including Other (F.Y 2023-24), raised by HMT Limited food
Comprehensive Income), of the profit for the processing machinery unit Aurangabad, on
year ended on that date. its customers. However as per the records,
(c) Standalone Statement of Changes in Equity, the the said invoices were raised during the
changes for the year ended on that date. period, but dispatches were made after
31-3-2024. The customer therefore has
(d) Standalone Cash flow statement of the flow of not got control of the assets before 31-
cash in the Company for year ended on that date. 3-24. This is in contravention of revenue
recognition as per Ind As 115, resulting in

73
 Annual Report 2023 - 24

the overstatement of revenue by Rs 105.88 (c) Ind AS 40 requires the Company to obtain
lakhs, with consequent overstatement a fair valuation report of the investment
of profit and understatement of finished properties from a registered valuer as
goods. defined under Rule 2 of Companies
(Registered Valuers and Valuation) Rules,
2. Auxiliary Business Division, Bengaluru 2017. However, we observe that the
Company has not complied with the above
(a) Non - receipt of balance Confirmations with
requirement as prescribed by Ind AS-40.
regard to Trade Receivables, Trade Payables,
Other Current Assets and Other Current (d) Ind-AS 109 requires an entity to apply
liabilities and hence, impact of the same on expected credit loss (ECL) model for
the standalone financial statements cannot measurement and recognition of impairment
be quantified. loss. However, as per the information and
explanation given to us no ECL matrix was
(b) The Company records rental income prepared for the period under audit for
generated from the buildings situated on the creating provision for loss allowance. Hence,
land which is not recorded in the books of we are unable to ascertain its impact, if
accounts of the Company. On examination any, on the Standalone Ind AS financial
of records produced for verification, the statements.
status of the land and it’s ownership is in (e) As per Ind AS-109, the Company has to
the name of HMT Limited. recognize loss allowance for expected credit
losses on a financial asset. In the instant
(c) Ind AS 40 requires the Company to obtain
case, we observe that the Company has
a fair valuation report of the investment long outstanding receivable from HMT
properties from a registered valuer as Machine Tools Limited in respect of which
defined under Rule 2 of Companies the Company has not recorded any expected
(Registered Valuers and Valuation) Rules, credit losses. In our opinion as HMT Machine
2017. However, we observe that the Tools Ltd is incurring continuous losses and
Company has not complied with the above has a negative net worth, the ability of the
requirement as prescribed by Ind AS-40. Company to recover the amount receivable
from HMT Machine Tools Limited remains
3. Corporate Head Office and Company as a doubtful.
whole
(f) As per Schedule III of Companies Act,
(a) Non - receipt of balance Confirmations with 2013, trade payables include all amounts
regard to Trade Receivables, Trade Payables, due on account of purchase of goods and
Other Current Assets and Other Current services received in the normal course of
liabilities and hence, impact of the same on business. In the instant case, we observe
the standalone financial statements cannot that an amount of Rs 1510.99 lacs which
be quantified. is presently disclosed as Accrued expenses
under the head Other Current Liabilities
(b) IND AS 40 defines Investment Property must be disclosed under Trade Payables.
as property held to earn rentals or for Further, the Company must provide ageing
capital appreciation or both. It is observed analysis for the amount disclosed under the
that Corporate Head Office derives rental
head Accrued Expenses.
income partly from building (owned by the
entity) which is not classified as Investment (g) We draw your attention to Note No.53
property in the standalone financial wherein the Company has stated that it has
statements.

74
 Annual Report 2023 - 24

no transactions with struck off companies Key Audit Matters:

under section 248 of The Companies Act,
Key Audit Matters are those matters that, in our
2013. However, Company has not provided
professional judgement, were of most significance
appropriate audit evidence to establish that
in our audit of the standalone financial statements
they do not have such transactions. for the financial year ended 31st March 2024. These
We conducted our audit in accordance with the matters were addressed in the context of our audit of
Standards on Auditing (SA’s) specified under the standalone financial statements, and in forming
our opinion thereon, and we do not provide a separate
section 143(10) of the Companies Act, 2013. Our
opinion thereon, and we do not provide a separate
responsibilities under those Standards are further opinion on these matters. For each matter below, our
described in the Auditor’s Responsibilities for the description of how our audit addressed the matter is
Audit of the Standalone Financial Statements section provided in that context.
of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the We have determined the matters described below
to be the key audit matters to be communicated in
Institute of Chartered Accountants of India together
our report. We have fulfilled the responsibilities
with the ethical requirements that are relevant to our described in the Auditor’s responsibilities for the
audit of the Standalone financial statements under audit of the standalone financial statements section
the provisions of the Companies Act, 2013 and the of our report, including in relation to these matters.
Rules thereunder, and we have fulfilled our other Accordingly, our audit included the performance of
ethical responsibilities in accordance with these procedures designed to respond to our assessment of
requirements and the Code of Ethics. We believe that the risks of material misstatement of the standalone
the audit evidence we have obtained is sufficient and financial statements. The results of our audit
appropriate to provide a basis for our opinion. procedures, including the procedures performed
to address the matters below, provide the basis for
our audit opinion on the accompanying standalone
financial statements.

Key Audit Matters How our audit addressed the key matter
Revenue Recognition from Operating Leases as per IND AS 116 - Leases
The company earns rental income from leasing out Our Audit Procedures include the following –
properties on a commercial and residential basis. • We have obtained the information such as Number
As the rental income earned forms a significant part of the of residential quarters and shops, occupancy, Tenant
total income earned, the matter is considered as key audit name, Date of occupancy and vacancy.
matter. • We have verified lease agreements on sample basis
• We have verified journal entries passed with the rental
income to be recognized as per lease agreements.
• We have verified the impact of Ind AS 116 on the rent
received by the entity.

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 Annual Report 2023 - 24

Revenue recognized from Sale of watches

The entity is engaged in sale of watches and earns a major Our Audit Procedures include the following –
part of revenue. • We have obtained an understanding of how the
And hence, considered this as a key audit matter. invoicing for the sales made at the showrooms and
sales made through e-Commerce website is done.
• We were provided with the transaction log in the
e-commerce website against which the invoices are
generated.
• We have obtained an understanding based on recording
the income from sale of watches in the books of
accounts.
• The sale of watches recorded in books was selected
on sample basis and verified against the invoices
generated.
• We have checked the sequential order for the invoices
generated against the sales made.
• We have obtained an explanation in respect to the
cancelled invoices.
Loan given to HMT Machine Tools Limited
The entity had given loan to it’s wholly owned subsidiary Our Audit Procedures include the following –
HMT Machine Tools Limited having a balance of Rs. • We have obtained the Minutes of Meeting of Board
30,582.41 lakhs. Committee and Board resolutions in respect to the
The amount given as loan to this entity forms a major part approval of loan given to HMT Machine Tools Ltd.
of Current Assets and hence, considered as a key audit • We have verified the rate of interest at which the loan
matter. was given.
• We have verified the sources of funds for the loan
given.
• We have verified the reasons for which the loans were
given.
• We have verified the impact of Section 185 and Section
186 of Companies Act, 2013 on such loan given.
• We were provided with the interest workings in respect
of interest income recorded on such loan.
Inventory valuation
Inventory is considered as a key audit matter as the Our Audit Procedures include –
valuation and determination of its impairment require • We have obtained the Inventory Valuation reports from
usage of several key assumptions and estimates that the management.
may have a material impact on the Standalone Financial • We have obtained the Quantitative details in respect of
Statements. type of Inventory held by the entity.
• We have obtained an understanding on the accounting
policy followed by the entity to measure the Inventory
on the closing date.
• We have analyzed and verified the disclosure
requirements as per Ind AS -2 and Schedule III of
Companies Act, 2013.

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 Annual Report 2023 - 24

Emphasis of Matter Paragraph financial year ended 31st March, 2024 relating
(a) We draw you attention to Note No. 49 of to transfer of land to Raman Research Institute
Standalone Ind AS financial statements for the and Government of Uttarakhand (transferee)
financial year ended 31st March, 2024 wherein wherein the Company (transferor) has received
HMT Limited has invested Rs.15 lakh (50% of entire sale consideration and has given the
equity shares) comprising 1,50,000 equity shares possession of the land in the earlier years
of Rs.10 each fully paid up in Sudmo HMT Process resulting in performance of contract by both the
Engineers (India) Ltd., Bengaluru (M/s. Sudmo - parties. The Company had made a provision for
HMT). M/s. Sudmo-HMT has no operations. The taxation of Rs. 980 lakhs which has been reversed
Board of HMT Ltd has approved (February 2020/ in the current year. However, the recognition of
July 2021) for closure of the defunct joint venture profit/ loss on transfer of land will be considered
company (M/s. Sudmo- HMT) and submitted the in the year of registration of sale deed.
closure proposal to Administrative Ministry (July Our opinion on the above matters is not modified.
2021) for approval.
Other Matters
(b) We draw you attention to Note No. 50 of
1. The previous year figures in the financial
Standalone Ind AS financial statements for the
statements of the company were audited by SSB
financial year ended 31st March, 2024 wherein
& Associates whose report has been furnished to
HMT Limited has invested Rs.20.84 lakh (39%
us in which the auditor have provided a qualified
of equity shares) comprising 20,84,050 equity
opinion on the Standalone Financial Statements
shares of Rs.1 each fully paid up in Gujarat State
as on 31-03-2024. The Qualified opinion given by
Machine Tools Corporation Ltd., Bhavanagar
the previous auditor is given as “Annexure A”.
(M/s. GSMTC). The Board of HMT Ltd gave (March
2021) in principle approved for liquidation of M/s. 2. We did not audit the financial statements/
GSMTC and issued the consent letter to Gujarat information of Food Processing Machinery Unit,
Industrial Investment Corporation Limited (GIIC), Aurangabad included in these Standalone Ind
GIIC approved (September 2021) liquidation of AS financial statements of the Company whose
M/s. GSMTC and submitted (October 2021) the financial statements/financial information reflect
proposal to Industries & Mines Department. total assets of Rs. 2440.32 lakhs as at March 31,
HMT Ltd submitted (April 2022) the liquidation 2024 and total revenues of Rs. 3,682.11 lakhs
proposal to Administrative Ministry. for the year ended on that date. The financial
statements/ information of this standalone has
(c) We draw you attention to Note No. 51 of
been audited by the branch auditor M/s R.K.
Standalone Ind AS financial statements for the
Muley & Co, Chartered Accountants, Aurangabad
financial year ended 31st March, 2024 wherein
whose report has been furnished to us, and our
HMT Limited has invested 30,00,000 equity
opinion in so far as it relates to the amounts and
shares of 1 Naira each fully paid up in Nigeria
disclosures included in respect of this unit, are
Mchine Tools Limited, Nigeria (M/s. NMTL). The
based solely on the report of such standalone
Board of HMT Ltd gave (February 2020) approval
auditor.
for divestment of stake in M/s. NMTL and sought
approval from Administrative Ministry. 3. The physical share certificates of 26,08,99,037
(d) We draw your attention to Note No. 3C- equity shares and 4,43,00,000 preference
Additional Information (d)&(e), Note No. 22- shares of HMT Machine Tools Limited whose
Additional Information and Note No. 34 (ii) of cost is Rs.26,089.90 lakhs and Rs.44,300.00
Standalone Ind AS financial statements for the lakhs respectively are not in possession of the
Company as at 31st March 2024.

77
 Annual Report 2023 - 24

Information Other than the Financial the preparation and presentation of the standalone
Statements and Auditor’s Report Thereon financial statements that give a true and fair view and
are free from material misstatement, whether due to
The Company’s Board of Directors is responsible
fraud or error.
for the other information. The other information
comprises the information included in the Annual In preparing the standalone financial statements,
report but does not include the standalone financial management is responsible for assessing the
statements and our auditor’s report thereon. Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
Our opinion on the standalone financial statements
concern and using the going concern basis of
does not cover the other information and we do not
accounting unless management either intends to
express any form of assurance conclusion thereon.
liquidate the Company or to cease operations, or has
In connection with our audit of the standalone no realistic alternative but to do so.
financial statements, our responsibility is to read the
Those Board of Directors are also responsible for
other information and, in doing so, consider whether
overseeing the company’s financial reporting process.
the other information is materially inconsistent
with the standalone financial statements, or our Auditor’s Responsibilities for the Audit of the
knowledge obtained in the audit or otherwise Standalone Financial Statements
appears to be materially misstated. If, based on the
Our objectives are to obtain reasonable assurance
work we have performed, we conclude that there is a
about whether the standalone financial statements
material misstatement of this other information, we
as a whole are free from material misstatement,
are required to report that fact. We have nothing to
whether due to fraud or error, and to issue an
report in this regard.
auditor’s report that includes our opinion. Reasonable
Responsibilities of Management for the assurance is a high level of assurance but is not a
Financial Statements guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement
The Company’s Board of Directors is responsible for
when it exists. Misstatements can arise from fraud or
the matters stated in section 134(5) of the Companies
error and are considered material if, individually or in
Act, 2013 (“the Act”) with respect to the preparation
the aggregate, they could reasonably be expected to
of these standalone financial statements that give a
influence the economic decisions of users taken on
true and fair view of the financial position, financial
the basis of these standalone financial statements.
performance, of the Company in accordance with
the accounting principles generally accepted in As part of an audit in accordance with SAs, we exercise
India, including the accounting Standards specified professional judgment and maintain professional
under section 133 of the Act. This responsibility scepticism throughout the audit. We also:
also includes maintenance of adequate accounting
records in accordance with the provisions of the • Identify and assess the risks of material
Act for safeguarding of the assets of the Company misstatement of the standalone financial
and for preventing and detecting frauds and statements, whether due to fraud or error,
other irregularities; selection and application of design and perform audit procedures responsive
appropriate accounting policies; making judgments to those risks, and obtain audit evidence that is
and estimates that are reasonable and prudent; sufficient and appropriate to provide a basis for
and design, implementation and maintenance of our opinion. The risk of not detecting a material
adequate internal financial controls, that were misstatement resulting from fraud is higher
operating effectively for ensuring the accuracy and than for one resulting from error, as fraud may
completeness of the accounting records, relevant to involve collusion, forgery, intentional omissions,

78
 Annual Report 2023 - 24

misrepresentations, or the override of internal We also provide those charged with governance with
control. a statement that we have complied with relevant
ethical requirements regarding independence, and to
• Obtain an understanding of internal control communicate with them all relationships and other
relevant to the audit in order to design matters that may reasonably be thought to bear on
audit procedures that are appropriate in the our independence, and where applicable, related
circumstances. Under section 143(3)(i) of the safeguards.
Companies Act, 2013, we are also responsible for
expressing our opinion on whether the company Report on Other Legal and Regulatory
has adequate internal financial controls system Requirements
in place and the operating effectiveness of such 1. As required by the Companies (Auditor’s Report)
controls. Order, 2016 (“the Order”), issued by the Central
• Evaluate the appropriateness of accounting Government of India in terms of sub-section (11)
policies used and the reasonableness of of section 143 of the Companies Act, 2013, we
accounting estimates and related disclosures give in the “Annexure B” a statement on the
made by management. matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
• Conclude on the appropriateness of
management’s use of the going concern basis 2. As required by Section 143(3) of the Act, we
of accounting and, based on the audit evidence report that:
obtained, whether a material uncertainty exists a. We have sought and obtained all the
related to events or conditions that may cast information and explanations which to
significant doubt on the company’s ability to the best of our knowledge and belief were
continue as a going concern. If we conclude that necessary for the purposes of our audit.
a material uncertainty exists, we are required
b. In our opinion, except for the matter
to draw attention in our auditor’s report to the
described in the Basis for Qualified opinion
related disclosures in the standalone financial
paragraph above, proper books of account
statements or, if such disclosures are inadequate,
as required by law have been kept by the
to modify our opinion. Our conclusions are based
Company so far as it appears from our
on the audit evidence obtained up to the date of
examination of those books.
our auditor’s report. However, future events or
conditions may cause the company to cease to c. The Balance Sheet, the Statement of Profit
continue as a going concern. and Loss, dealt with by this Report are in
agreement with the books of account.
• Evaluate the overall presentation, structure and
content of the standalone financial statements, d. In our opinion, except for the matter
including the disclosures, and whether the described in the Basis for Qualified
standalone financial statements represent the opinion, the aforesaid standalone financial
underlying transactions and events in a manner statements comply with the Accounting
that achieves fair presentation. Standards specified under Section 133 of
the Act, read with Rule 7 of the Companies
We communicate with those charged with governance (Accounts) Rules, 2014.
regarding, among other matters, the planned scope
e. The entity is a government entity and in the
and timing of the audit and significant audit findings,
terms of notification reference No.G.S.R.
including any significant deficiencies in internal
463(E) dated 05th June 2015 issued by
control that we identify during our audit.
Ministry of Corporate Affairs for Government

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 Annual Report 2023 - 24

Companies, sub-section (2) of Section foreign entities (“Intermediaries”), with

164 of Companies Act, 2013 regarding the understanding, whether recorded
disqualification for appointment of director in writing or otherwise, that the
is not applicable. Hence, Comment on the Intermediary shall, whether, directly
same does not arise. or indirectly lend or invest in other
persons or entities identified in any
f. With respect to the adequacy of the
manner whatsoever by or on behalf of
internal financial controls over financial
the company (“Ultimate Beneficiaries”)
reporting of the Company and the operating
or provide any guarantee, security
effectiveness of such controls, refer to our
or the like on behalf of the Ultimate
separate Report in “Annexure C”.
Beneficiaries.
g. With respect to the other matters to
b) The Management of the company
be included in the Auditor’s Report in
has represented that, to the best of
accordance with Rule 11 of the Companies
their knowledge and belief, other than
(Audit and Auditors) Rules, 2014, in our
that as disclosed in the notes to the
opinion and to the best of our information
accounts, that the Company has not
and according to the explanations given to
received any funds from any person(s)
us:
or entity(ies), including foreign
i. The company has disclosed the impact entities (“Funding Parties”), with the
of pending litigations on its financial understanding, whether recorded in
position in its standalone financial writing or otherwise, that the Company
statements – Refer Note 32 to the shall, whether, directly or indirectly lend
financial statements. or invest in other persons or entities
identified in any manner whatsoever
ii. The company did not have any long by or on behalf of the Funding Party
term contracts as required under the (“Ultimate Beneficiaries”) or provide
applicable law or accounting standards any guarantee, security or the like on
and also not entered into any derivative behalf of the Ultimate Beneficiaries.
contracts, accordingly no provision
is required to be made in respect to c) Based on audit procedures that
material foreseeable losses. have been considered reasonable
and appropriate in the circumstances,
iii. There were no amounts which were nothing has come to our notice that
required to be transferred to the has caused us to believe that the
Investor Education and Protection Fund representations under sub-clause (i)
by the Company. and (ii) of Rule (e), as provided under
iv. a) The Management of the company has (a) and (b) above, contain any material
represented that, to the best of their misstatement.
knowledge and belief, that the Company v. The Company has not declared or paid
has not advanced or loaned or invested any dividend during the year ended 31st
any funds (either from borrowed March 2024, and therefore, compliance
funds or share premium or any other with section 123 of the Companies Act,
sources or kind of funds) to or in any 2013 is not applicable.
other person(s) or entity(ies), including

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 Annual Report 2023 - 24

vi. Based on our examination which 3. As required by Section 143(5) of the Act, our
included test checks, the company submissions are as under :
has used an accounting software for
maintaining its books of account which We give in the “Annexure D”, a statement on
has a feature of recording audit trail the compliance to Directions issued by the
(edit log) facility and the same has not Comptroller and Audit General of India.
been operated throughout the year for
all relevant transactions recorded in
the software.
for N S V M & Associates
Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVL5456

Place: Bengaluru
Date: 20-09-2024

81
 Annual Report 2023 - 24

Annexure A to Independent Auditor’s Report

The Annexure A referred to in the Independent Auditor’s Report to the Members

of HMT Limited (‘the Company’) for the year ended 31 March 2024, the qualified
opinion given on the previous year figures in the financial statements as on 31
March 2024 is as follows :
1. Food Processing Machinery Unit, and its consequential impact if any on the
Aurangabad: Standalone Ind AS financial statements
As per information and explanation given to us cannot be quantified.
with regard to Inventory valuation as stated in Note b. The Company has not provided status quo of
No. 2 (ii) (j) stock of raw material, it is valued by Nigeria Machine Tools Ltd. and Gujarat State
adopting Weighted Average Cost method. However, Machine Tools Corporation Ltd as on 31st
in the inventory statement provided for verification March, 2023. Consequently, we are unable
purpose, the correctness of stock items rates could to comment on the impact of the same on
not be verified due to absence of sufficient and Standalone Ind AS financial statements.
appropriate audit evidence. Owing to the nature of
Company’s records and in the absence of sufficient c. We draw your attention to Note No.53
audit evidence, we are unable to ascertain if there is wherein the Company has stated that it has
material departure from the Weighted Average Cost no transactions with struck off companies
Method adopted by the company. We are also unable under section 248 of The Companies Act,
to ascertain its consequent impact, if any, on the 2013. However, Company has not provided
Standalone Ind AS financial statements. appropriate audit evidence to establish that
they do not have such transactions.
2. Auxiliary Business Division, Bengaluru
Consequent to Non-receipt of confirmation of d. Company for Impairment on Financial Assets
balances of Debtors and Creditors, the impact on as per Ind-AS 109 has to apply expected
financial statements cannot be quantified. credit loss (ECL) model for measurement and
recognition of impairment loss. However, as
3. Corporate Head Office and Company as a per the information and explanation given
whole: to us no ECL matrix was prepared for the
a. Non-confirmation of balances of Trade period under audit for creating provision
Receivables, Loans and Advances, Trade for loss allowance. Hence, we are unable
Payables and Other Current Liabilities to ascertain its impact, if any, on the
Standalone Ind AS financial statements.
for N S V M & Associates
Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVL5456

Place: Bengaluru
Date: 20-09-2024

82
 Annual Report 2023 - 24

The Annexure B referred to in the Independent Auditor’s Report to the Members

of HMT Limited (‘the Company’) for the year ended 31 March 2024, we report that:

(i)a) (A) The Company has maintained proper As we are not provided with the latest
records showing full quantitative Physical verification report of Tractor
details and the situation of Property, Plant Division (merged with Auxiliary Business
and Equipment. Division, Bengaluru), we are unable to
comment on the discrepancy, if any, on
(B) The Company does not own any Property, Plant and Equipment of Tractor
Intangible Assets and hence, the reporting Division.
under paragraph 3(i)(a)(B) is not applicable
to the company. Fixed Asset Verification report was not
provided for verification in case of Food
b) According to the information and Processing Unit, Aurangabad and we are
explanations given to us, the Property, unable to comment on the discrepancy, if
Plant and Equipment are physically verified any, on the Property, Plant and Equipment
once in three years which is considered of Food Processing Unit, Aurangabad.
reasonable considering the size of the
company. c) The title deeds of all the immovable
properties (other than properties where
The physical verification of Fixed Assets
the Company is the lessee and the lease
in Auxiliary Business Division was carried
agreements are duly executed in favor of the
out during the FY 2022-23 and the Tractor
lessee), as disclosed under Property, Plant
division which is discontinued and merged
and Equipment in the financial statements
with Auxiliary Business Division was carried
are held in the name of the Company except
out during the FY 2016-17. No material
in the following cases:
discrepancies were found in the case of
Property, Plant and Equipment of Auxiliary
Business Division.
Whether held by
Description of Gross Held in promoter, director, Reason for not being held in the
Period held
Property carrying value name of or their relative or name of the Company
employee
The said land is encroached, and the
Leasehold Land
Rs. 5,00,000 CIDCO No matter is pending with the Honorable
from CIDCO
High Court

d) The Company has not revalued its Property, Transactions (Prohibition) Act, 1988 and the
Plant and Equipment or Intangible Assets rules made thereunder.
during the year.
(ii) a) As explained to us, inventory of the company
e) According to the information and has been physically verified during the year by the
explanations given by the management, management at regular intervals. In our opinion,
no proceedings has been initiated or are the frequency of such verification is reasonable.
pending against the Company for holding No material discrepancies were noticed on such
any benami property under the Benami physical verification.

83
 Annual Report 2023 - 24

b) According to the information and has not made any investments in, nor provided
explanations given to us by the management any loans or advances in nature of loans or
and based on our examination of the books stood guarantee or provided security to any
of accounts in the normal course of audit, entity. Thus, paragraph 3(iii) of the Order is not
the Company has not been sanctioned applicable to the Company.
working capital limits in excess of five crore
a) (A)According to the information and
rupees in aggregate, from bank or financial
explanations given to us and based on the
institutions on the basis of security of
audit procedures performed by us, during
current assets. Thus, paragraph 3(ii)(b) of
the year the Company has not provided
the Order is not applicable to the Company.
any loans or advances in nature of loans, or
(iii) According to the information and explanation stood guarantee or provided security to its
given to us and based on the audit procedures subsidiaries, joint ventures and associates
performed by us, during the year the Company other than that disclosed below:

Particulars Loans Advances in Guarantee Security

nature of Loan
Aggregate amount during the year
- Subsidiaries Rs.3111.98 lakhs Rs.154.31 lakhs - -
- Associate - - - -
- Joint Venture - Rs.3.40 lakhs - -
Balance outstanding as at the year end:
- Subsidiaries Rs.30582.41 lakhs Rs.1599.53 lakhs - -
- Associate - - - -
- Joint Venture - Rs.3.40 lakhs - -

(B) According to the information and investments made, guarantee provided and the
explanations given to us and based on the terms and conditions of loans granted by the
audit procedures performed by us, during Company are prima facie not prejudicial to the
the year the Company has not provided interest of the company.
any loans or advances in nature of loans, or
stood guarantee or provided security to any c) According to the information and explanation
parties other than subsidiaries, Associate provided to us and based on the audit procedures
and joint venture. conducted by us, the principal and interest of the
loans granted by the Company, the repayment
b) According to the information and explanations of loan is over due as on 31st March 2024. The
given to us and based on the audit procedures details for which are as below:
conducted by us, we are of the opinion that the
Name of Entity Amount (Rs.) Due date Extent of Delay Remarks, if any
HMT Machine Tools Limited Rs.506.99 lakhs 31-03-2019 1827 days -
HMT Machine Tools Limited Rs.1,345.47 lakhs 31-03-2020 1461 days -
HMT Machine Tools Limited Rs.1,640.73 lakhs 31-03-2021 1096 days -
HMT Machine Tools Limited Rs.1,828.65 lakhs 31-03-2022 731 days -

84
 Annual Report 2023 - 24

In respect of advances in the nature of loans, conducted by us, in respect of loans and advances
there is no stipulation as to repayment of in the nature of loans, there is an amount which
principal and interest amount relating to such is overdue for more than ninety days as at the
advances and hence, we are unable to comment balance sheet date in respect of loans given it to
on the same. it’s wholly owned subsidiary i.e., HMT Machine
Tools Limited as indicated in below table-
d) According to the information and explanation
provided to us and based on the audit procedures

Principal Amount
Number of Cases Interest Overdue Total Overdue Remarks(if any)
Overdue
HMT Machine Tools
Rs.30,582.41 lakhs Rs.5,321 lakhs Rs.35,903.41 lakhs -
Limited

e) According to the information and explanation f) According to the information and explanation
provided to us, there is no loan given falling provided to us and based on the audit procedures
due during the year, which has been renewed or conducted by us, the Company has granted loan
extended or granted fresh loans to settle the over or advance in nature of loan to any parties under
dues of existing loans given to the same party. a agreement which does not stipulate the terms
and period of repayment which are as follows

All Parties Promoters Related Party

Aggregate of loans/advances in
nature of loan
- Repayable on Demand Rs.3,266.29 lakhs - Rs.3,266.29 lakhs
- Agreement does not specify any terms or period - - -
of repayment
Percentage of loans/advances in 9.86% 9.86%
nature of loan to the total loans

(iv) In our opinion and according to the information (vi) The Central government has not prescribed
and explanations given to us, the Company has maintenance of cost records under section
complied with the provisions of section 185 and 148(1) of the Act for any of the products/services
186 of the Act with respect to the loans, deposit of the Company. Thus paragraph 3(vi) of CARO is
and investments made. not applicable to the Company.
(v) The Company has not accepted any deposits (vii) a) According to the information and explanations
or has any amounts which are deemed to be given to us and on the basis of our examination of
deposits to which the provisions of Section 73 the records of the Company, amounts deducted/
to 76 or any other relevant provisions of the accrued in the books of account in respect of
Companies Act rules framed thereunder and undisputed statutory dues including Provident
the directions issued by the RBI are applicable. Fund, Employees’ State Insurance, Income-
Hence paragraph 3 (v) of CARO is not applicable tax, Duty of Customs, Goods and Services tax,
to the company. Cess and other material statutory dues have
not generally been regularly deposited during

85
 Annual Report 2023 - 24

the year by the Company with the appropriate respect of Provident Fund, Employees’ State
authorities though there have been serious Insurance, Income tax, Duty of Customs, Goods
delays in case of filing GST Returns and payment and Services tax, cess and any other material
of taxes. statutory dues were in arrears as at 31 March
2024 except the following, for a period of more
According to the information and explanations than six months from the date they became
give to us, no undisputed amounts payable in payable –

Statement of Undisputed Dues

Amount
Sl.No Nature of Statute Nature of Dues
(Rs. In Lakhs)
1 Greater Hyderabad Municipal Corporation Property Tax 723.65
2 Employee State Insurance Employee State Insurance 2.34
3 VAT/CST Interest on VAT/CST 1.24
4 GST Interest on GST 0.16
5 Bruhat Bengaluru Mahanagara Palike Property Tax 19.98
6 Excise Duty Excise Duty 59.14
In the case of Food Processing Machinery Unit, Aurangabad, there were lapses in collection of TCS, non-

deduction of TDS and short deduction of TDS. given to us and based on the audit procedures
The amount of undisputed statutory dues arising conducted by us, there are no dues of income
from such cases is not quantifiable. tax, Goods and Service Tax, custom duty, and
cess which have not been deposited of account
b) According to the information and explanations of any dispute other than that stated below:

Statement of Disputed Dues

Name of the Nature of Dues
Amount (`) Period to which Forum where the Remarks, if
statute the amount dispute is pending any
relates
Haryana Local Haryana Local Area 486.17 From 2005 to Honourable High -
Area Development Development Tax 2017 Court of Punjab and
Tax Ordinance, Haryana
2000
GST GST under Appeal 62.72 For the year Appelate Tribunal -
before Tribunal 2019-2020
GST GST under 25.35 For the year GST Department -
Assessment 2020-2021
Professional Tax Professional Tax 0.04 For the year Professional Tax -
2023-2024 Department
Employee Provident Fund 1210.48 Various years Employee Provident -
Provident Fund Fund Appellate
Tribunal

86
 Annual Report 2023 - 24

(viii) Based on our audit procedure and on the (ix) (a)Based on our audit procedure and on the
information and explanation given to us by information and explanation given by the
the management, no transaction has been management, we are of the opinion that the
surrendered or disclosed as income during the company has not defaulted in repayment of
year in the tax assessments under the Income loans or other borrowing to its lender other
Tax Act, 1961. than that stated below:

Nature of Borrowing Name of lender Amount not paid on due date No of days
including debt of delay or
securities unpaid
Government of India Government of India Rs.6,073.60 lakhs sue since 21.01.2018 2261 days
Loan (Interest Free) Rs.6,073.60 lakhs sue since 21.01.2019 1896 days
dated 21.01.2017
Rs.6,073.60 lakhs sue since 21.01.2020 1531 days
Rs.6,073.60 lakhs sue since 21.01.2021 1165 days
Rs.6,073.60 lakhs sue since 21.01.2022 800 days
Government of India Government of India Rs.4,800.00 lakhs sue since 16.02.2018 2235 days
Loan (Interest Free) Rs.4,800.00 lakhs sue since 16.02.2019 1870 days
dated 16.02.2017
Rs.4,800.00 lakhs sue since 16.02.2020 1505 days
Rs.4,800.00 lakhs sue since 16.02.2021 1139 days
Rs.4,800.00 lakhs sue since 16.02.2022 774 days
Government of India Government of India Rs.1,958.00 lakhs sue since 29.04.2018 2163 days
Loan (Interest Free) Rs.1,958.00 lakhs sue since 29.04.2019 1798 days
dated 29.04.2017
Rs.1,958.00 lakhs sue since 29.04.2020 1432 days
Rs.1,958.00 lakhs sue since 29.04.2021 1067 days
Rs.1,958.00 lakhs sue since 29.04.2022 702 days

(b) According to the information and (e) According to the information and
explanation given to us by the management, explanations given to us and on an overall
the Company is not declared as willful examination of the balance sheet of the
defaulter by any bank or Financial Institution company/ examination of the cash flow
or other lenders. statement of the Company, we report that
the company has not taken any funds from
(c) According to the information and any entity or person on account of or to
explanation given to us by the management, meet the obligations of its subsidiaries,
the Company has not obtained any term associates or joint ventures as defined
loan during the year and hence comment under Companies Act, 2013.
on the same does not arise.
(f) According to the information and
(d) According to the information and explanations given to us and procedures
explanations given to us and on an overall performed by us, we report that the
examination of the balance sheet of the company has not raised loans during the
company, we report that no funds raised on year on the pledge of securities held in its
short-term basis have been used for long- subsidiaries, joint ventures or associate
term purposes by the company. companies.
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 Annual Report 2023 - 24

(x)(a) According to the information and (b) We were unable to obtain Internal Audit
explanation given to us and based on audit Reports of the two branches i.e., Auxiliary
procedure performed, no money was raised Business Division, Bengaluru and Food
by the way of public issue/follow-on-offer Processing Machinery Unit, Aurangabad,
(including debt instruments). hence the Internal Audit Reports have not
been considered by us. In case of Corporate
(b) According to the information and Head office, We have obtained amd
explanations given to us and on the basis considered the Internal Audit Reports.
of our examination of the records of the
Company, the Company has not made any (xv) On the basis of the information and explanations
preferential allotment or private placement given to us, in our opinion during the year
of shares or fully or partly convertible the company has not entered into any non-
debentures during the year. Accordingly, cash transactions with its directors or persons
clause 3(x)(b) of the Order is not applicable. connected with its directors and hence provisions
of section 192 of the Companies Act, 2013 are
(xi)(a) Based upon audit procedure performed and not applicable to the Company.
information and explanation given by the
management, we report that no fraud by (xvi) (a) According to the information and
the company or any fraud on the company explanation given to us and in our opinion,
has been noticed or reported during the the Company is not required to be registered
year. under Section 45-IA of the Reserve Bank of
India Act, 1934.
(b) Based upon audit procedure performed and
information and explanation given by the (b) Based on the audit procedure performed,
management, no report under sub-section the Company has not conducted any Non-
(12) of section 143 of the Companies Act Banking Financial or Housing Finance
has been filed by us or by other auditors of activities as per the Reserve Bank of India
the Company. Act, 1934.
(c) As represented to us by the management, (c) Based in audit procedure performed, the
there are no whistle blower complaints company is not a Core Investment Company
received by the company during the year. (CIC) as defined in the regulations made by
the Reserve Bank of India.
(xii) The company is not a Nidhi Co. and therefore
clause 3(ix) of the order is not applicable to the (d) Based in audit procedure performed, the
company. Company or any of the companies in the
group are Core Investment Company (CIC)
(xiii) In our opinion, all transactions with the related as defined in the regulations made by the
parties entered into by the Company during Reserve Bank of India.
the year are in compliance with section 177
and section 188 of the Companies Act of 2013 (xvii) The Company has not incurred any cash
and the details thereof have been disclosed losses in the financial year and in the preceding
in the Financial Statement as required by the financial year.
Accounting standards and Companies Act, 2013.
(xviii) There has been no resignation of the statutory
(xiv) (a) In our opinion, the Company has an internal auditors during the year and accordingly clause
audit system commensurate with the size 3(xviii) is not applicable.
and nature of its business.

88
 Annual Report 2023 - 24

(xix) According to the information and explanations (xx) (a) The company does not have unspent
given to us and on the basis of the financial amount in respect of other than ongoing
ratios, ageing and expected dates of realization projects in the financial year in compliance
of financial assets and payment of financial with second proviso to sub-section (5) of
liabilities, other information accompanying the section 135
financial statements, our knowledge of the Board
(b) In respect of ongoing projects, the company
of Directors and management plans, we are of
has transferred unspent amount to a Special
the opinion that no material uncertainty exists
Account, within a period of 30 days from the
as on the date of the audit report that company
end of the financial year in compliance with
is capable of meeting its liabilities existing at the
Sec.135(6) of the said Act, as per the details
date of balance sheet as and when they fall due
given below:
within a period of one year from the balance
sheet date.

Financial Year Amount unspent on CSR Amount Transferred to Amount Transferred after
activities for “On going Special Account within 30 the due date (specify the
Projects” days from the end of the date of deposit)
Financial Year
(a) (b) (c) (d)
2023-2024 27,80,000 27,80,000 -

for N S V M & Associates

Chartered Accountants
Firm registration number: 010072S

G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVL5456

Place: Bengaluru
Date: 20-09-2024

89
 Annual Report 2023 - 24

Annexure – C to the Independent auditor’s report of even date on the financial

statements of “HMT LIMITED” on the financial statements for the year ended 31
March 2024.

Report on the Internal Financial Controls 143(10) of the Companies Act, 2013, to the extent
under Clause (i) of Sub-section 3 of Section applicable to an audit of internal financial controls,
143 of the Companies Act, 2013 (herein with reference to the financial statement.
referred as “the Act”)
Those Standards and the Guidance Note require
We have audited the internal financial controls over that we comply with ethical requirements and
financial reporting of “HMT Limited” as of March plan and perform the audit to obtain reasonable
31, 2024, in conjunction with our audit of the assurance about whether adequate internal financial
Standalone financial statements for the year ended controls over financial reporting was established and
on that date. maintained and if such controls operated effectively
Management’s Responsibility for Internal in all material respects.
Financial Controls Our audit involves performing procedures to obtain
The management is responsible for establishing audit evidence about the adequacy of the internal
and maintaining internal financial control based financial controls system over financial reporting and
on the internal control over financial reporting their operating effectiveness. Our audit of internal
criteria established by the Company considering the financial controls over financial reporting included
essential components of internal control stated in obtaining an understanding of internal financial
the Guidance Note on Audit of Internal Financial controls over financial reporting, assessing the risk
Controls Over Financial Reporting issued by the that a material weakness exists, and testing and
Institute of Chartered Accountants of India”. These evaluating the design and operating effectiveness
responsibilities include the design, implementation of internal control based on the assessed risk.
and maintenance of adequate internal financial The procedures selected depend on the auditor’s
controls that were operating effectively for ensuring judgment, including the assessment of the risks of
the orderly and efficient conduct of its business, material misstatement of the financial statements,
including adherence to company’s policies, the whether due to fraud or error.
safeguarding of its assets, the prevention and
We believe that the audit evidence we have obtained
detection of frauds and errors, the accuracy and
is sufficient and appropriate to provide a basis for
completeness of the accounting records, and the
our audit opinion on the Company’s internal financial
timely preparation of reliable financial information,
controls system over financial reporting.
as required under the Companies Act, 2013.
Meaning of Internal Financial Controls Over
Auditors’ Responsibility
Financial Reporting
Our responsibility is to express an opinion on the
A company’s internal financial control over financial
Company’s internal financial controls over financial
reporting is a process designed to provide reasonable
reporting based on our audit. We conducted our
assurance regarding the reliability of financial
audit in accordance with the Guidance Note on
reporting and the preparation of financial statements
Audit of Internal Financial Controls Over Financial
for external purposes in accordance with generally
Reporting (the “Guidance Note”) issued by the
accepted accounting principles. A company’s internal
Institute of Chartered Accountants of India, and the
financial control over financial reporting includes
Standards on Auditing, as prescribed under section
those policies and procedures that:

90
 Annual Report 2023 - 24

(1) pertain to the maintenance of records that, in control over financial reporting and whether such
reasonable detail, accurately and fairly reflect internal control was operating effectively as on 31st
the transactions and dispositions of the assets of March, 2024.
the company;
Based on the limited audit procedures performed
(2) provide reasonable assurance that transactions by us during the course of our audit, the following
are recorded as necessary to permit preparation material weakness has been identified in the
of financial statements in accordance with operating effectiveness of the Company’s internal
generally accepted accounting principles, and financial control over financial reporting as at 31st
that receipts and expenditures of the company March, 2024:
are being made only in accordance with
authorizations of management and directors of 1. Food Processing Machinery Unit, Aurangabad
the company; and
(a) The branch does not have an appropriate
(3) Provide reasonable assurance regarding internal control system for inventory as
prevention or timely detection of unauthorized there is no integration between the financial
acquisition, use, or disposition of the company’s accounting module and inventory module.
assets that could have a material effect on the
(b) The branch does not have adequate internal
financial statements.
controls reconciling and obtaining balance
Inherent Limitations of Internal Financial confirmation from Sundry Debtors, Sundry
Controls Over Financial Reporting Creditors and other parties. This could
result in material weakness, in the financial
Because of the inherent limitations of internal reporting process of debtors, creditors and
financial controls over financial reporting, including other parties.
the possibility of collusion or improper management
override of controls, material misstatements due to (c) The branch has not maintained proper
error or fraud may occur and not be detected. Also, records and reconciliations of GST, TDS on
projections of any evaluation of the internal financial GST Liability, which have a material impact
controls over financial reporting to future periods are on the financial reporting of such amounts
subject to the risk that the internal financial control in the financial statements. Further, the
over financial reporting may become inadequate branch does not have adequate internal
because of changes in conditions, or that the degree control on the payments of statutory dues
of compliance with the policies or procedures may i.e., GST, TDS, PF, PT ESIC etc. within due
deteriorate. dates.

Qualified Opinion 2. Auxiliary Business Division, Bengaluru

According to the information and explanations given (a) The Branch does not have an appropriate
to us and based on our audit, the Company has not internal control system to reconcile the
established its internal control over financial reporting financial accounts pertaining to Goods
criteria considering the essential components of and Services Tax etc. with the relevant tax
internal control stated in the Guidance Note on Audit records and returns which can possibly
of Internal Controls over Financial Reporting issued result into under/over statement of such
by the Institute of Chartered Accountants of India. amounts in the financial statements. Such
As a result, we are unable to obtain sufficient and non-reconciliation also raises the possibility
appropriate audit evidence to provide a basis for our of not properly accounting the purchases/
opinion whether the company has adequate internal procurements.
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 Annual Report 2023 - 24

(b) The Branch does not have appropriate A ‘material weakness’ is a deficiency, or a combination
internal control with respect to Inventory of deficiencies, in internal financial control over
and valuation of inventory. financial reporting, such that there is a reasonable
possibility that a material misstatement of the
(c) The Branch does not have a proper system company’s annual or interim financial statements will
of control over invoicing, sales and inventory not be prevented or detected on a timely basis.
from different outlets.
We have considered the material weaknesses
3. Corporate Head Office and Company as a whole identified and reported above in determining the
(a) The company does not have an adequate nature, timing, and extent of audit procedures
internal control system for obtaining balance applied in our audit of the financial statements of
confirmations from Sundry Debtors, Sundry the Company, and these material weaknesses have
Creditors and other parties. This may result affected our opinion on the financial statements of
in material misstatement in the standalone the Company, and we have issued a qualified opinion
financial statements. on the financial statements.

for N S V M & Associates

Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVL5456

Place: Bengaluru
Date: 20-09-2024

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 Annual Report 2023 - 24

“ANNEXURE D” referred to in paragraph 3 under the heading “report on other

legal and regulatory requirements” of our report directions indicating the arears
to be examined by statutory auditors during the course of audit of annual accounts
of HMT limited for the financial year 2023-24 issued by the comptroller & auditor
general of India (“C&AG”) under section 143 (5) of the Companies Act, 2013
Sl.No Directions Audit Observations
1 Whether the Company has system in place to process Based on the information and explanation provided to us
all the accounting transactions through IT system? by the management, it has a system where accounting
If yes, the implications of processing of accounting vouchers are processed and prepared manually, due
transactions outside IT system on the integrity of authorizations are obtained which are later entered into
the accounts along with financial implications, if any, IT System i.e., the accounting software maintained by the
may be stated. company. The company has adequate control to ensure
the integrity of the accounting transactions.
2 Whether there is any restructuring of an existing Based on the information and explanation furnished to us
loan or cases of waiver/ write off of debts/ loans/ by the Company, there is no restructuring of loan/ waiver
interest etc. made by a lender to the Company due off of debts/ loans/ interest etc from its lenders.
to the Company’s inability to repay the loan? If yes,
the financial impact may be stated. Whether such
cases are properly accounted for? (In case, lender is
a Government company, then this direction is also
applicable to statutory auditor of lenders company).
3 Whether funds (grants/subsidy etc.) received/ Based on the information and explanation furnished to us
receivable for specific schemes from central/ state by the Company, it has received an amount of Rs.13.74
Government or its agencies were properly accounted Lakhs from Department of Heavy Industries towards
for/ utilized as per its term and conditions? List the reimbursement expenses incurred by the Company
cases of deviation. for Financial & Strategic Review of Consolidation &
Restructuring Plan of the Company paid to IIM, Bangalore.
Since the communication from Department of Heavy
Industries states as onetime interest free loan the same
has been treated as current liabilities. Management has
informed that it is in process of getting ratification for
same. Accordingly, we are unable to comment whether it
is loan or grant given by the Central Government. Further,
the Company has an unspent balance of Rs.28.24 crores
as on 31.03.2024 out of the Loan received from GOI of Rs.
641.58 crores.
for N S V M & Associates
Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVL5456
Place: Bengaluru
Date: 20-09-2024

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 Annual Report 2023 - 24

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS
OF HMT LIMITED FOR THE YEAR ENDED 31 MARCH 2024

The preparation of financial statements of HMT Limited for the year ended 31 March 2024 in accordance with
the financial reporting framework prescribed under the Companies Act, 2013(Act) is the responsibility of the
management of the Company. The Statutory Auditors appointed by the Comptroller and Auditor General of
India under Section 139(5) of the Act are responsible for expressing under Section 143 of the Act based on the
independent audit in accordance with the Standards on Auditing prescribed under Section 143(10) of the Act.
This is stated to have been done by them vide their Revised Audit Report dated 20th September 2024 which
supersedes their earlier Audit Report dated 09 August 2024.
I, on behalf of the Comptroller of Auditor General of India, have conducted a supplementary audit of the
financial statements of HMT Limited for the year ended 31 March 2024 under Section 143(6)(a) of the Act.
This supplementary audit has been carried out independently without access to the working papers of the
Statutory Auditors and is limited primarily to inquiries of the Statutory Auditors and Company personnel and
a selective examination of some of the accounting records.
In view of the revision made in the Statutory Auditors’ Report to give effect to some of my audit observations
raised during supplementary audit, I have no further comments to offer upon or supplement to the Statutory
Auditors’ Report under Section 143(6)(b) of the Act.

For and on behalf of the

Comptroller and Auditor General of India

(M.S. Subrahmanyam)
Place: Hyderabad Director General of Commercial Audit,
Date : 26 September 2024 Hyderabad

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 Annual Report 2023 - 24

Standalone significant accounting policies for the year ended March 31, 2024

1. Background: of current events and actions, uncertainty about

HMT Limited (“the Company”) is a public limited these assumptions and estimates could result in
company domiciled in India and is incorporated in the outcomes requiring a material adjustment
1953 under the provisions of the Companies Act, to the carrying amounts of assets or liabilities
1913, having Registered Office at HMT Bhavan, 59, in future periods. Any revision to accounting
Bellary Road, Bangalore-560 032. The Company’s estimates is recognized prospectively.
shares are listed in National Stock Exchange of India b) Property, Plant & Equipment
Limited and Bombay Stock Exchange Limited. The
Company is engaged in the manufacturing of Food Property, Plant and Equipment (“PPE”) are
Processing Machineries. stated at cost of acquisition or construction, net
of vatable taxes, less accumulated depreciation
2. Significant Accounting Policies: to date. Cost includes direct costs and financing
i) Basis of preparation:
costs related to borrowing attributable to
acquisition that are capitalized until the assets
The financial statements have been prepared to are ready for use.
comply in all material aspects with the Indian
Accounting Standards (“Ind AS”) notified under Expenditure in connection with the development
section 133 of the Companies Act 2013 (“the Act”), of land is capitalised in the year in which the
read the Companies (Indian Accounting Standards) expense is incurred.
Rules, 2015 and relevant amendment rules issued Advances paid towards the acquisition of
thereafter, as applicable to the Company and other property, plant and equipment outstanding at
provisions of the Act. each balance sheet date is classified as capital
The financial statements have been prepared on advances under other non-current assets.
the historical cost convention on the accrual basis, The cost of an item of PPE shall be recognised as
except for certain financial instruments which are an asset if, and only if:
measured at fair values at the end of each reporting
period, as explained in the accounting policies below. (a) it is probable that future economic benefits
Historical cost is generally based on the fair value of associated with the item will flow to the entity;
the consideration given in exchange for goods and and
services.
(b) the cost of the item can be measured reliably.
ii) Summary of Significant Accounting
Policies:
Items of PPE which is held for sale within 12
months from the end of reporting period is
a) Use of estimates: disclosed at lower of carrying cost or fair value
The preparation of financial statements in less cost of sale
conformity with Ind AS requires the management
to make judgements, estimates and assumptions The carrying amount of an item of PPE is
that affect the reported amounts of revenues, derecognised:
expenses, assets and liabilities and the (a) on disposal; or
disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates (b) where no future economic benefits are
are based on the management’s best knowledge expected from its use or disposal.

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 Annual Report 2023 - 24

The gain or loss arising from the de-recognition The Company as a lessee
of an item of PPE shall be included in statement
of profit or loss when the item is derecognised. Leases for which the Company is a lessee is
classified as a finance or operating lease.
Special Tools:
a) Leases are classified as finance lease whenever
Expenditure on manufactured and bought out the terms of the lease transfer substantially all
special tools held for use in the production or the risks and rewards of ownership to the lessee.
supply of the goods or services and whose use is
greater than one period is considered as an item b) Leases are classified as operating lease when
of PPE and is depreciated over its useful life of 5 there is no right of use of an asset and payments
years. on such lease are recognised as expenses in
Profit & Loss Account on a straight line basis over
c) Leases the term of relevant lease.
The Company as a lessor c) The Company, as a lessee, recognizes a right-
Leases for which the Company is a lessor is of-use asset [ROU] and a lease liability for its
classified as a finance or operating lease. leasing arrangements, if the contract conveys
Whenever the terms of the lease transfer the right to control the use of an identified
substantially all the risks and rewards of asset. The contract conveys the right to control
ownership to the lessee, the contract is classified the use of an identified asset, if it involves the
as a finance lease. All other leases are classified use of an identified asset and the Company has
as operating leases. substantially all of the economic benefits from
use of the asset and has right to direct the use
When the Company is an intermediate lessor, of the identified asset except leases with a term
it accounts for its interests in the head lease of 12 months or less and low value leases, the
and the sublease separately. The sublease is company recognises the lease payments as an
classified as a finance or operating lease by operating expenses on a straight line basis over
reference to the right-of-use asset arising from the term of the lease.
the head lease.
The cost of the right-of-use asset shall comprise
Operating Leases as a Lessor of the amount of the initial measurement of the
a) Rental income from operating leases is lease liability adjusted for any lease payments
generally recognised on a straight-line basis over made at or before the commencement date
the term of the relevant lease except where the plus any initial direct costs incurred. The right-
rentals are structured solely to increase in line of-use assets is subsequently measured at cost
with expected general inflation to compensate less any accumulated depreciation, accumulated
for the Company's expected inflationary cost impairment losses, if any and adjusted for any
increases, such increases are recognised in the remeasurement of the lease liability.
year in which such benefits accrue. The right-of-use assets is depreciated using the
b) Operating lease payments in case of straight-line method from the commencement
intermediate lease are recognized as an expense date over the shorter of lease term or useful life
in the Profit and Loss Account on a straight line of right-of-use asset.
basis over the term of the relevant lease. The Company measures the lease liability at
the present value of the lease payments that
are not paid at the commencement date of

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 Annual Report 2023 - 24

the lease. The lease payments are discounted respective individual estimated useful lives on a
using the interest rate implicit in the lease, if straight-line basis, from the date that they are
that rate can be readily determined. If that rate available for use. The estimated useful life of an
cannot be readily determined, the Company identifiable intangible asset is based on a number
uses incremental borrowing rate. Lease liability of factors including the effects of obsolescence,
and ROU asset have been separately presented demand, competition, and other economic
in the Balance Sheet and lease payments have factors (such as the stability of the industry, and
been classified as financing cash flows. known technological advances), and the level of
maintenance expenditures required to obtain
d) Borrowing Cost:
the expected future cash flows from the asset.
Borrowing cost consist of interest and other
costs that an entity incurs in connection with the ii) Expenditure on Technical Know-how is
borrowing of funds. recognized as an Intangible Asset and amortized
on straight line method based on technical
Borrowing costs directly attributable to assessment for a period not exceeding ten years.
acquisition of PPE which take substantial period The amortization commences when the asset is
of time to get ready for its intended use are also available for use.
included to the extent they relate to the period
till such assets are ready to be put to use. iii) The cost of software internally generated /
purchased for internal use which is not an integral
All other borrowing costs are expensed in the part of the related hardware is recognized as an
period in which they occur. Intangible Asset and is amortized on straight line
e) Investment Property: method based on technical assessment for a
Investment properties are measured initially at period not exceeding ten years.
cost, including transaction costs. Subsequent iv) Research and Development Expenditure:
to initial recognition, investment properties are
stated at cost less accumulated depreciation and Research Phase:
accumulated impairment loss, if any.
Expenditure on research including the
The Company depreciated building component expenditure during the research phase of
of investment property as per the useful life Research & Development Projects is charged to
prescribed in Schedule II of the Act. profit and loss account in the year of incurrence.
Investment properties are derecognised either Development Phase:
when they have been disposed of or when
they are permanently withdrawn from use and Expenditure incurred on Development Costs,
no future economic benefit is expected from which relate to Design, Construction and Testing
their disposal. The difference between the net of a chosen alternative for new or improved
disposal proceeds and the carrying amount of material, devices, products, processes, systems
the asset is recognised in statement profit or loss or services are recognized as an intangible asset.
in the period of de-recognition. Such Intangible assets are amortized based
on technical assessment over a period not
f) Intangible Assets:
exceeding ten years using straight line method.
i) Intangible assets are stated at cost less g) Depreciation and Amortisation:
accumulated amortization and impairment.
Intangible assets are amortized over their Depreciation on PPE is provided on straight line
basis over the useful life of the various assets as

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prescribed in Schedule II to the Act, pro-rata with complied with. When the grant relates to an
reference to the date of addition or deletion. As expense item, it is recognised as income on a
and when PPE gets fully depreciated, Re.1/- is systematic basis over the periods that the related
retained as book value of the PPE. PPE costing costs, for which it is intended to compensate are
less than Rs. 10,000/- shall be depreciated to expenses. When the grant relates to an asset, it
Re.1/- in the year of purchase. is recognised as income in equal amounts over
the expected useful life of the related asset.
Each part of an item of PPE (also known as
'Component') with a cost that is significant in j) Inventories:
relation to the total cost of the item and has Raw materials, stores and Spares, Tools and
different useful life from that of the PPE it shall Instruments, Scrap, work in progress and
be depreciated separately. finished goods are valued at the lower of cost
Special Tools capitalised as PPE is depreciated and net realizable value. The cost of materials is
over the period of five years and items those ascertained by adopting Weighted Average Cost
costing less than Rs.750 is depreciated in the Method.
year of acquisition/manufacture. Cost of work in progress, finished goods and
Amortisation methods and useful lives of goods-in-transit comprises direct materials,
intangible assets are reviewed periodically direct labour and an appropriate portion of
including at the end of each financial year. variable and fixed overhead being allocated on
the basis of normal operating capacity.
h) Non-current assets held for distribution to
Provisions for slow moving inventories are made
owners and discontinued operations:
considering the redundancy. However, provision
The Company classifies non-current assets as for non moving inventories are made when the
held for sale/distribution to owners if their same are unmoved for more than five years and
carrying amounts will be recovered principally they are not useful for any other alternative
through a sale/ distribution rather than through purpose for general or specific orders.
continuing use. Actions required to complete the k) Revenue Recognition:
sale/ distribution should indicate that it is unlikely
that significant changes to the sale/ distribution A customer contract exists if collectability under
will be made or that the decision to sell/ the contract is considered probable, the contract
distribute will be withdrawn. Management must has commercial substance, contains payment
be committed to the sale/ distribution expected terms, as well as the rights and commitments of
within one year from the date of classification. both parties has been approved.
Non-current assets held for sale/for distribution The Company collects goods and service tax
to owners and disposal groups are measured at on behalf of the Government and, therefore,
the lower of their carrying amount and the fair these are not economic benefits flowing to the
value less costs to sell/ distribute. Non-current Company. Hence, they are excluded from the
Assets classified as held for sale/ distribution are aforesaid revenue/ income.
presented separately in the balance sheet i) Sale of goods:
i) Government Grants: Revenues are recognised at the point in time
Government Grants are recognised where there that the customer obtains control of the goods
is reasonable assurance that the grant will be or services which is when it has taken title to the
received and all attached conditions will be products and assumed the risks and rewards of

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ownership of the product or services. Generally, vii) Extended Warranties:

the transfer of title and risks and rewards
of ownership of goods are governed by the When the company sells extended warranty,
contractually defined shipping terms. the revenue from sale of extended warranty is
deferred and recognised over the period covered
ii) Rendering of services: by the warranty. Where extended warranties are
Revenue from sale of services is recognised by included in the price of the product and provide
reference to the stage of completion. Stage of protection in excess of that provided by normal
completion is measured by services performed terms and conditions of sale for the relevant
to date as a percentage of total services to be product, the company will separate and account
performed. for these two items separately.
l) Foreign Currency Translation:
iii) Rental Income:
The functional currency of the Company is the
Rental income from operating leases is generally Indian rupee. These financial statements are
recognised on a straight-line basis over the term presented in Indian rupees
of the relevant lease except where the rentals
are structured solely to increase in line with Foreign-currency denominated monetary assets
expected general inflation to compensate for the and liabilities are translated into the relevant
Company's expected inflationary cost increases, functional currency at exchange rates in effect
such increases are recognised in the year in at the balance sheet date. The gains or losses
which such benefits accrue. resulting from such translations are included in
net profit in the statement of profit and loss.
iv) Dividend Income:
Non-monetary assets and non-monetary
Dividend income is recognised when the liabilities denominated in a foreign currency
Companies right to receive the payment is and measured at historical cost are translated at
established, which is generally when shareholders the exchange rate prevalent at the date of the
approve the dividend. transaction.
v) Interest Income: Transaction gains or losses realized upon
settlement of foreign currency transactions are
Interest income, including income arising included in determining net profit for the period
from other financial instruments measured at in which the transaction is settled. Revenue,
amortised cost, is recognized using the effective expense and cashflow items denominated in
interest rate method. foreign currencies are translated into the relevant
vi) Warranty: functional currencies using the exchange rate in
effect on the date of the transaction.
Provisions for warranty-related costs are
recognised when the product is sold or service m) Retirement & Other Employee Benefits:
provided to the customer. Initial recognition Provident Fund is provided for, under a defined
is based on historical experience. The initial benefit scheme. The contributions are made to
estimate of warranty-related costs is revised the Trust administered by the company.
annually.
Leave encashment is provided for under a
With regard to turnkey projects implemented by long-term employee benefit based on actuarial
the company, warranty provision at the rate of 2 valuation.
percent of the purchase value is provided

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 Annual Report 2023 - 24

Gratuity is provided for, under a defined benefit Expenses incurred in respect of bonds issued
scheme, to cover the eligible employees, liability for raising funds to meet payments made under
being determined on actuarial valuation. Annual the VRS are fully written off in the year of
contributions are made, to the extent required, disbursement.
to a trust constituted and administered by the
n) Income taxes:
Life Insurance Corporation of India under which
the Gratuity is fully covered for all eligible Income tax expense comprises current tax
employees . expense and the net change in the deferred tax
Settlement allowance (“SA”) is provided for, asset or liability during the year. Current and
under a defined benefit scheme, to cover the deferred tax are recognized in the statement of
eligible employees, liability being determined on profit and loss, except when they relate to items
actuarial valuation. that are recognized in OCI or directly in equity,
in which case, the current and deferred tax are
The Company recognizes the net obligation also recognized in other comprehensive income
of a defined benefit plan i.e. Gratuity and SA or directly in equity, respectively.
in its balance sheet as an asset or liability.
Gains and losses through re-measurements i) Current taxes:
of the net defined benefit liability/ (asset) are Current income tax assets and liabilities
recognized in other comprehensive income. In are measured at the amount expected to
accordance with Ind AS, re-measurement gains be recovered from or paid to the taxation
and losses on defined benefit plans recognized authorities. The tax rates and tax laws used to
in Other Comprehensive Income are not to compute the amount are those that are enacted
be subsequently reclassified to statement or substantively enacted, at the reporting date.
of profit and loss. As required under Ind AS
compliant Schedule III, the Company recognizes ii) Deferred Taxes:
re-measurement gains and losses on defined Deferred income tax assets and liabilities are
benefit plans (net of tax) to retained earnings. recognized on temporary differences between
Pension is provided for under a defined the tax bases of assets and liabilities and their
contribution scheme, contributions are made carrying amounts for financial reporting purposes
to the Pension Fund administered by the at the reporting date.
Government. o) Provisions:
In respect of employees who are separated A provision is recognized when the Company has
other than under Voluntary Retirement Scheme, a present obligation (legal or constructive) as a
the Gratuity, Earned Leave Encashment (ELE), SA result of past event, it is probable that an outflow
is debited to the respective provision accounts. of resources embodying economic benefits
The provision at the year end for Gratuity, ELE will be required to settle the obligation and a
and SA is restated as per the actuarial valuation reliable estimate can be made of the amount
done at the year-end of the obligation. If the effect of the time value
Gratuity, ELE, SA and lumpsum compensation of money is material, provisions are discounted
paid to employees under Voluntary Retirement using a current pre-tax rate that reflects, when
Scheme (“VRS”) shall be fully written off in the appropriate, the risks specific to the liability.
year of incidence. When discounting is used, the increase in the
provision due to the passage of time is recognized
in the statement of Profit and loss.
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 Annual Report 2023 - 24

A contingent liability is a possible obligation that of an asset or CGU exceeds its recoverable
arises from past events whose existence will be amount, the asset is considered impaired and
confirmed by the occurrence or non-occurrence is written down to its recoverable amount. In
of one or more uncertain future events beyond assessing value in use, the estimated future
the control of the Company or a present obligation cash flows are discounted to their present value
that is not recognized because it is not probable using a pre-tax discount rate that reflects current
that an outflow of resources will be required to market assessments of the time value of money
settle the obligation. A contingent liability also and the risks specific to the asset. In determining
arises in extremely rare cases where there is a net selling price, recent market transactions
liability that cannot be recognized because it are taken into account, if available. If no such
cannot be measured reliably. The Company does transactions can be identified, an appropriate
not recognize a contingent liability but discloses valuation model is used.
its existence in the financial statements.
Impairment losses are recognized in the
p) Impairment: statement of profit and loss. After impairment,
depreciation is provided on the revised carrying
i) Financial assets: amount of the asset over its remaining useful
The Company assesses at each date of balance life.
sheet whether a financial asset or a group of q) Financial Instruments:
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through a Financial assets and liabilities are recognized
loss allowance. The Company recognises lifetime when the Company becomes a party to the
expected losses for all trade receivables that do contractual provisions of the instrument.
not constitute a financing transaction. For all Financial assets and liabilities are initially
other financial assets, expected credit losses are measured at fair value. Transaction costs that are
measured at an amount equal to the 12-month directly attributable to the acquisition or issue
expected credit losses or at an amount equal of financial assets and financial liabilities (other
to the life time expected credit losses if the than financial assets and financial liabilities at
credit risk on the financial asset has increased fair value through profit or loss) are added to or
significantly since initial recognition deducted from the fair value measured on initial
recognition of financial asset or financial liability.
ii) Non-financial assets:
i) Cash & cash equivalents:
The Company assesses at each reporting date The Company considers all highly liquid financial
whether there is an indication that an asset instruments, which are readily convertible into
may be impaired. If any indication exists, or known amounts of cash that are subject to an
when annual impairment testing for an asset insignificant risk of change in value and having
is required, the Company estimates the asset’s original maturities of three months or less from
recoverable amount. An asset’s recoverable the date of purchase, to be cash equivalents.
amount is the higher of an asset’s or cash- Cash and cash equivalents consist of balances
generating unit’s (CGU) net selling price and with banks which are unrestricted for withdrawal
its value in use. The recoverable amount is and usage.
determined for an individual asset, unless the
asset does not generate cash inflows that are ii) Financial assets at amortised cost:
largely independent of those from other assets
or groups of assets. Where the carrying amount Financial assets are subsequently measured at
amortized cost if these financial assets are held

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within a business whose objective is to hold recognition under Ind AS 109. On derecognition
these assets in order to collect contractual cash of any financial assets in its entirety, the
flows and the contractual terms of the financial difference between Carrying amount (on date of
asset give rise on specified dates to cash flows derecognition) and any consideration received
that are solely payments of principal and interest (including difference between any new asset
on the principal amount outstanding. and new liability assumed) shall be recognized in
profit or loss.
iii) Financial assets at fair value through other
comprehensive income: A financial liability (or a part of a financial liability)
is derecognized when the obligation specified in
Financial assets are measured at fair value the contract is discharged or cancelled or expires.
through other comprehensive income if these
financial assets are held within a business vii) Fair value of financial instruments:
whose objective is achieved by both collecting
contractual cash flows and selling financial assets In determining the fair value of its financial
and the contractual terms of the financial asset instruments, the Company uses following
give rise on specified dates to cash flows that are hierarchy and assumptions that are based on
solely payments of principal and interest on the market conditions and risks existing at each
principal amount outstanding. The Company reporting date.
presents the subsequent changes in fair value in Fair value hierarchy:
Other Comprehensive Income.
All assets and liabilities for which fair value
iv) Financial assets at fair value through profit is measured or disclosed in the financial
or loss: statements are categorized within the fair value
Financial assets are measured at fair value hierarchy, described as follows, based on the
through profit or loss unless it is measured at lowest level input that is significant to the fair
amortized cost or at fair value through other value measurement as a whole:
comprehensive income on initial recognition. • Level 1 — Quoted (unadjusted) market prices
The transaction costs directly attributable to the in active markets for identical assets or liabilities
acquisition of financial assets and liabilities at
fair value through profit or loss are immediately • Level 2 — Valuation techniques for which
recognized in statement of profit and loss. the lowest level input that is significant to the
fair value measurement is directly or indirectly
v) Financial Liabilities: observable
Financial liabilities are subsequently carried • Level 3 — Valuation techniques for which the
at amortized cost using the effective interest lowest level input that is significant to the fair
method. For trade and other payables maturing value measurement is unobservable
within one year from the balance sheet date, the
carrying amounts approximate fair value due to For assets and liabilities that are recognized in
the short maturity of these instruments. the financial statements on a recurring basis, the
Company determines whether transfers have
vi) De-recognition of financial instruments: occurred between levels in the hierarchy by re-
The Company derecognizes a financial asset assessing categorization (based on the lowest
when the contractual rights to the cash flows level input that is significant to the fair value
from the financial asset expire or it transfers the measurement as a whole) at the end of each
financial asset and the transfer qualifies for de- reporting period.

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viii) Investment in subsidiaries, joint ventures the land and buildings to a third party to generate
and associates: lease rentals for the Company and accordingly, it
is classified as Investment Properties
Investment in subsidiaries, joint ventures
and associates are carried at cost. c Property, plant & equipment:
iii) Significant accounting judgements, Building at Corporate Head Office, where the
estimations and assumptions: significant portion of the property is used as
The preparation of the Company’s financial Company owner occupied property and certain
statements requires management to make portion has been leased out by the Company.
judgements, estimates and assumptions that The management doesn’t have any intention
affect the reported amounts of revenues, to sell the building and the portion of building
expenses, assets and liabilities, and the which has been leased is for a short period and
accompanying disclosures, and the disclosure accordingly, it has peed classified as PPE.
of contingent liabilities. Uncertainty about ii) Estimates and assumptions:
these assumptions and estimates could result
in outcomes that require a material adjustment The key assumptions concerning the future and
to the carrying amount of assets or liabilities other key sources of estimation uncertainty at
affected in future periods. the reporting date, that have a significant risk
i) Judgements: of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
In the process of applying the Company’s financial year, are described below. Existing
accounting policies, management has made circumstances and assumptions about future
the following judgements, which have the most developments, however, may change due to
significant effect on the amounts recognised in market changes or circumstances arising that
the consolidated financial statements are beyond the control of the Company. Such
a) Operating lease– Company as lessor: changes are reflected in the assumptions when
they occur.
The Company has entered into commercial
property leases on its investment property a) Deferred Taxes
portfolio. The Company has determined, based Deferred Tax Assets must be recognised to the
on an evaluation of the terms and conditions of extent that it is probable that future profits will be
the arrangements, such as the lease term not available against which the deductible temporary
constituting a major part of the economic life of difference can be utilised. The company does not
the commercial property, that it retains all the recognise Deferred Tax Asset since the company
significant risks and rewards of ownership of has unused tax losses and there is no convincing
these properties and accounts for the contracts evidence about future taxable profit.
as operating leases.
b) Defined Benefit Obligations:
b) Discontinued Operations:
The cost of the defined benefit gratuity plan,
As per the CCEA Approval on 27/10/2016 it was provident fund and Settlement Allowance and
decided that the Tractors Divisions operations the present value of the gratuity obligation
will be closed. According the Assets have been are determined using actuarial valuations. An
classified based on the definitions under IND actuarial valuation involves making various
AS16, IND AS 40 and IND AS 105. It is planned that assumptions that may differ from actual
the company will lease out the major portions of

103
 Annual Report 2023 - 24

developments in the future. These include compensated absences are recognized in the
the determination of the discount rate; future period in which the absences occur. Service cost,
salary increases and mortality rates. Due to the net interest on the net defined benefit liability
complexities involved in the valuation and its (asset), remeasurements of the net defined
long-term nature, a defined benefit obligation is benefit liability (asset) and other expenses
highly sensitive to changes in these assumptions. related to long term benefit plans are recognized
All assumptions are reviewed at each reporting in the Statement of Profit & Loss.
date.
The measurement of long-term employee
The parameter most subject to change is the benefits is not subject to the same degree of
discount rate. In determining the appropriate uncertainty as the measurement of Defined
discount rate, the management considers the Benefit Obligation. For this reason- the
interest rates of government bonds. Remeasurement are not recognized in Other
Comprehensive Income.
The mortality rate is based on publicly available
mortality tables for the specific countries. Those d) Fair value measurement of financial
mortality tables tend to change only at interval instruments:
in response to demographic changes. Future
salary increases and gratuity increases are based When the fair values of financial assets and
on expected future inflation rates. financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in
c) Other Long-Term Employee Benefits: active markets, their fair value is measured using
valuation techniques including the NAV/NRV
Other Long-Term Employee Benefits like Earned model. The inputs to these models are taken
Leave Encashment is determined through the from observable markets where possible, but
Actuarial Valuation. The Measurement of the where this is not feasible, a degree of judgement
expected cost of accumulating compensated is required in establishing fair values. Judgements
absences as the additional amount expected to include considerations of inputs such as liquidity
be paid as a result of the unused entitlement risk, credit risk and volatility. Changes in
that has accumulated at the end of the assumptions about these factors could affect the
reporting period. Expenses on non-accumulating reported fair value of financial instruments.

104
 Annual Report 2023 - 24

STANDALONE BALANCE SHEET AS AT 31ST MARCH 2024

(Rs. in lakhs)
As at As at
Particulars Notes
31-03-2024 31-03-2023
ASSETS
Non-current Assets
Property, Plant and Equipment 3A 768.27 896.29
Investment Property 3B 141.20 160.13
Financial Assets
Investments 4 71,977.91 71,977.91
Other Financial Assets 11 127.70 1,415.99
Deferred Tax Asset (Net) 5 47.93 4.28
Other Non Current Assets 13 71.74 67.98
73,134.75 74,522.58
Current assets
Inventories 6 1,174.90 974.81
Financial Assets
Trade Receivables 7 1,482.98 1,767.31
Cash and Cash Equivalents 8 651.69 7,638.04
Bank balances other than Cash and Cash Equivalents 9 16,807.94 10,230.86
Loans 10 30,582.41 27,470.43
Other Financial Assets 11 5,703.43 5,661.12
Current Tax Assets (Net) 12 583.70 965.48
Other Current Assets 13 2,555.61 2,769.51
59,542.66 57,477.56
Non Current Assets Held for Sale 3C 296.15 296.15
296.15 296.15
TOTAL ASSETS 1,32,973.56 1,32,296.29

EQUITY AND LIABILITIES

Equity
Share Capital 14 35,560.16 35,560.16
Other Equity 15 10,317.79 7,832.74
Total Equity 45,877.95 43,392.90
Non-current Liabilities
Financial liabilities
Non-current Financial Liability 17 - -
Provisions
Provision for Employee Benefits 18 90.87 241.01
90.87 241.01

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 Annual Report 2023 - 24

STANDALONE BALANCE SHEET AS AT 31ST MARCH 2024

(Rs. in lakhs)
As at As at
Particulars Notes
31-03-2024 31-03-2023
Current Liabilities
Financial Liabilities
Borrowings 16 64,171.74 64,171.74
Trade Payables 19
Total outstanding dues to Micro, Small & Medium 150.90 10.52
Enterprises
Total outstanding dues of creditors other than Micro, 1,693.70 417.56
Small & Medium Enterprises
Other Financial Liabilities 20 3,686.00 3,686.00
Other Current Liabilities 21 16,687.31 19,065.62
Provisions
Provision for Employee Benefits 18 256.82 130.93
Others 23 288.19 285.35
Current Tax Liabilities (Net) 22 70.08 894.66
87,004.74 88,662.38
Total Liabilities 87,095.61 88,903.39
TOTAL EQUITY AND LIABILITIES 1,32,973.56 1,32,296.29

Significant Accounting Policies and Notes forming part of Accounts

As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVC1090
Place : Bangalore
Date : August 9, 2024

106
 Annual Report 2023 - 24

STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars Notes
31-03-2024 31-03-2023
CONTINUING OPERATIONS
Revenue from Operations 24 4,791.24 5,159.25
Other Income 25 5,126.72 4,837.33

Total Income 9,917.96 9,996.58

EXPENSES
Cost of Materials Consumed 26 3,455.23 4,285.60
Changes in Inventories of finished goods, Stock in trade and work-in-
27 (143.36) (178.80)
progress
Employee Benefits Expense 28 754.87 734.27
Depreciation and Amortization Expense 29 210.54 210.84
Finance Costs 30 0.32 12.69
Other Expenses 31 3,893.02 3,441.37

Total expense 8,170.62 8,505.97

Profit/(loss)before exceptional items and tax from continuing

1,747.34 1,490.61
operations
Exceptional items 32 - -
Profit/(loss)before tax from continuing operations 1,747.34 1,490.61
(1) Current tax 320.00 1,180.00
(2) Deferred tax (35.07) 13.39
(3) Adjustment of tax relating to earlier periods (980.00) (408.60)
(695.07) 784.79
Profit/(loss) for the year from continuing operations 2,442.41 705.82

DISCONTINUED OPERATIONS

Profit/(loss) for the year - -

OTHER COMPREHENSIVE INCOME 2,442.41 705.82

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 Annual Report 2023 - 24

STANDALONE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars Notes
31-03-2024 31-03-2023
Other comprehensive income not to be reclassified to profit or loss
in subsequent periods:
Re-measurement gains (losses) on defined benefit plans 34.06 27.70
Tax expense/(income) (8.58) 6.97
Net other comprehensive income not to be reclassified to profit or 42.64 20.73
loss in subsequent periods
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 2,485.05 726.55
Earnings per share for continuing operations 39
i) Basic, profit from continuing operations attributable to equity 0.69 0.20
holders
ii) Diluted, profit from continuing operations attributable to equity 0.69 0.20
holders
Earnings per share for discontinued operations
i) Basic, profit from discontinued operations attributable to equity - -
holders
ii) Diluted, profit from discontinued operations attributable to equity - -
holders
Earnings per share from continuing and discontinued operations
i) Basic, profit for the year attributable to equity holders 0.69 0.20
ii) Diluted, profit for the year attributable to equity holders 0.69 0.20

Significant Accounting Policies and Notes forming part of Accounts

As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362
GCS Mani Kishor Kumar Shankar Aparna R
Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVC1090
Place : Bangalore
Date : August 9, 2024

108
 Annual Report 2023 - 24

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-03-2024 31-03-2023
Operating activities
Profit/(loss) before tax from continuing operations 1,747.34 1,490.61
Profit before tax 1,747.34 1,490.61
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and impairment of property, plant and equipment 191.61 191.12
Depreciation of investment properties 18.93 19.72
Amortisation of government grant - (11.13)
Profit on disposal of property, plant and equipment - (76.48)
Interest Income (2,781.26) (2,106.67)
Finance costs 0.32 12.69
Working capital adjustments:
Movements in provisions, gratuity and government grants (37.64) 3,891.28
Increase in trade and other receivables and prepayments 240.45 (727.37)
(Increase)/Decrease in inventories (195.57) (104.35)
Increase in trade and other payables (961.79) 8,978.03
(1,777.61) 11,557.45
Income tax (paid)/reversed 217.20 (377.42)
Net cash flows from operating activities (1,560.41) 11,180.03
Investing activities
Proceeds from sale of property, plant and equipment - 76.52
Purchase of property, plant and equipment (63.59) (446.55)
Deposits with Banks (6,577.08) (4,352.78)
Interest received 1,215.05 860.45
Net cash flows used in investing activities (5,425.62) (3,862.36)

Financing activities
Interest Paid (0.32) (1.56)
Repayment of borrowings - -
Net cash flows from/(used in) financing activities (0.32) (1.56)

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 Annual Report 2023 - 24

STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-03-2024 31-03-2023
Net increase in cash and cash equivalents (6,986.35) 7,316.11
Net foreign exchange difference - -
Cash and cash equivalents at the beginning of the year 7,638.04 321.93
Cash and cash equivalents at year end 651.69 7,638.04
Significant Accounting Policies and Notes forming part of Accounts
Note: 1) The above statement has been prepared under the indirect method as set out in Ind AS 7
2) The Cash and Cash equivalents has been considered as per Note No.8
As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVC1090
Place : Bangalore
Date : August 9, 2024

110
 Annual Report 2023 - 24

STATEMENT OF CHANGES IN EQUITY

A. EQUITY SHARE CAPITAL
As at 31st March 2024 (Rs. In lakhs)
Balance as at 1st Changes in Equity Share Capital Balance as at 31st
April 2023 during the year March 2024
35,560.16 - 35,560.16

As at 31st March 2023 (Rs. In lakhs)

Balance as at 1st Changes in Equity Share Capital Balance as at 31st
April 2022 during the year March 2023
35,560.16 - 35,560.16

B Other Equity

As at 31st March 2024 (Rs. in lakhs)

Other Comprehensive Total equity
Reserves and Surplus
Income attributable
Equity to equity
General Retained
Instruments Other Items holders of the
Reserve earnings Company
through OCI
Balance as of 1st April 2023 13,453.11 (3,879.55) - (1,740.82) 7,832.74
Discontinued operations - - - - -
Remeasurement of the net - - - 42.64 42.64
defined benefit liability/ asset
Dividends including (DDT) - - - - -
Total Comprehensive Income for - 2,442.41 - - 2,442.41
the year
Balance as at 31 March 2024 13,453.11 (1,437.14) - (1,698.18) 10,317.79

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 Annual Report 2023 - 24

As at 31st March 2023 (Rs. in lakhs)

Other Comprehensive Total equity
Reserves and Surplus
Income attributable
Equity to equity
General Retained
Instruments Other Items holders of the
Reserve earnings Company
through OCI
Balance as of 1st April 2022 13,453.11 (4,585.37) - (1,761.55) 7,106.19
Discontinued operations - - - - -
Remeasurement of the net - - - 20.73 20.73
defined benefit liability/ asset
Dividends including (DDT) - - - - -
Total Comprehensive Income for - 705.82 - - 705.82
the year
Balance as at 31 March 2023 13,453.11 (3,879.55) - (1,740.82) 7,832.74

Significant Accounting Policies and Notes forming part of Accounts

As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVC1090
Place : Bangalore
Date : August 9, 2024

112
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
3A. PROPERTY, PLANT AND EQUIPMENT (Rs. in lakhs)
Furniture,
Land & Land Plant and Fittings Special Transport Land-
Buildings Total
Development Machinery & Office Tools Vehicles Leasehold
Appliances
Gross carrying value
As At 1 April 2022 158.19 759.84 10,834.20 465.27 623.99 63.55 17.09 12,922.13
Additions - 131.57 16.51 2.41 - - - 150.49
Disposals - (40.01) (0.09) - - - (40.10)
As At 31 March 2023 158.19 891.41 10,810.70 467.59 623.99 63.55 17.09 13,032.52
Additions/Adjustment - 48.26 13.98 1.35 - - 63.59
Disposals - - (0.34) 0.34 - - - -
As At 31 March 2024 158.19 939.67 10,824.34 469.28 623.99 63.55 17.09 13,096.11
Accumulated Depreciation
As At 1 April 2022 - 370.19 10,462.21 457.96 620.91 63.55 10.35 11,985.17
Depreciation charge for the year - 60.96 128.63 1.40 - - 0.13 191.12
Disposals/Adjustment - (39.97) (0.09) -- - - (40.06)
As At 31 March 2023 - 431.15 10,550.87 459.27 620.91 63.55 10.48 12,136.23

113
Depreciation charge for the year - 89.44 99.75 2.30 - - 0.12 191.61
Disposals/Adjustment - (1.06) 1.06 - - - -
As At 31 March 2024 - 520.59 10,649.56 462.63 620.91 63.55 10.60 12,327.84
Net carrying value
As At 31 March 2024 158.19 419.08 174.78 6.65 3.08 - 6.49 768.27
As At 31 March 2023 158.19 460.26 259.83 8.32 3.08 - 6.61 896.29
Net carrying value 31-03-2024 31-03-2023
Plant Property and Equipment 768.27 896.29
Additional Information:
(a) Quantum of loss accounted due to Impairment of Assets as per IND AS-36 - Nil
Land:
(b) The Company is in possession of leasehold land measuring 30 acres at Aurangabad out of which 5 acres of land has been encroached
upon. Further, legal action is being pursued for restoration of the encroached land.
(c) The carrying amount of temporarily idle property, Plant and Equipment : - NIL
(d) The Gross carrying amount of any fully depreciated property, Plant and equipment that is still in use Rs.10873.48 lakhs.
Annual Report 2023 - 24

(e) The Carrying amount of Property, Plant and Equipment retired from active use and not classified as held for sale in accordance with Ind AS
105 in Auxillary Business Division amounting to Rs.53.49 lakhs
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Land & Land
Buildings Total
Development
3B. INVESTMENT PROPERTY
Gross carrying value
As at 1 April 2022 10.75 1,444.97 1,455.72
Additions - - -
Deduct/adjustment - - -
As at 31 March 2023 10.75 1,444.97 1,455.72
Additions - - -
Deduct/adjustment - - -
As at 31 March 2024 10.75 1,444.97 1,455.72

Depreciation and impairment

As at 1 April 2022 - 1,275.87 1,275.87
Depreciation - 19.72 19.72
Deduct/adjustment - -
As at 31 March 2023 - 1,295.59 1,295.59
Depreciation 18.93 18.93
Deduct/adjustment - -
As at 31 March 2024 - 1,314.52 1,314.52
Net carrying value
As at 31 March 2024 10.75 130.45 141.20
As at 31 March 2023 10.75 149.38 160.13
Additional Information:
i) The Company has classified certain land & building as investment property which is not a owner
occupied property.
ii) The Company has not obtained any fair valuation of the investment property from Registered Valuer.
However, based on the guidance value, the fair value of the investment property as at March 31,
2024 is Rs.4,32,935.93 lakhs (as at March 31, 2023 Rs. 2,27,020.15 Lakhs)
iii) Land:
(a) The Company is in possession of land located at Pinjore, Kalamassery and Hyderabad gifted by the
respective State Governments admeasuring 382.54 acres, 27 acres and 660.75 acres respectively,
nominally valued at ₨1/- each.
(b) In respect of land at Hyderabad, an area admeasuring 28.40 acres was leased to various Government
Departments at Hyderabad. Pending registration of transfer, the Company has agreed to release
14.20 acres of land in exchange for 14.20 acres of land under an exchange agreement with a State
Public Sector Undertaking. The Company has also leased 1,000 sq. yards of land, for which lease
deed was executed and agreed to release another two acres of land to Telangana (formerly called
as Andhra Pradesh) Postal Department in Hyderabad, the execution of sale deed is pending.
The Company has obtained stay order from the Honourable Andhra Pradesh High Court, against
repossession of 106 acres and 35 guntas of land by the Government of Telangana (formerly called
as Government of Andhra Pradesh). No finality has been reached on the proposal for surrender of
300 acres of land owned by the Company at Hyderabad, to the Government of Telangana (formerly
called as Government of Andhra Pradesh), in lieu of payment of part sale consideration and issue of
marketable title for the balance land.
114
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

Additional Information:
Information regarding income and expenditure of Investment property Rs. in Lakhs
Particulars 31-Mar-24 31-Mar-23
Rental income derived from investment properties 382.25 380.26
Direct operating expenses (including repairs and (312.89) (355.66)
maintenance) generating rental income
Direct operating expenses (including repairs and (2.54) (2.47)
maintenance) that did not generate rental income
Profit/(loss) arising from investment properties before 66.82 22.13
depreciation and indirect expenses
Less – Depreciation 18.93 19.72
Profit arising from investment properties before indirect 47.89 2.41
expenses

3C. Non Current Assets Held for Sale Rs. in Lakhs

As at As at
31-Mar-24 31-Mar-23
Nature of Asset
Land 24.13 24.13
Buildings 272.02 272.02
Total 296.15 296.15
Additional Information:
(a) The Company owning 5.80 acres of land at Bangalore which is classified as Assets Held for Sale, is
pending for hearing with the Hon'ble Supreme Court of India due to Government of Karnataka filing an
Interlocutory Application (IA) during the year 2020-21. The same shall be dealt upon final outcome of the
case.
(b) In line with the approval of Government of India, the Immovable Assets of HMT Watches Ltd (under
closure) have been transferred to HMT Limited at the book value of Rs.296.06 lakhs during the year
2022-23, the rights of transfer of immovable assets have been assumed by the Government and HMT
Limited is the custodian of these properties till their disposal and ensure the transfer of the sale proceeds
to the Government of India after deduction of applicable expenses and taxes.
(c) The Company is in possession of gift land located at Bangalore admeasuring 89.74 acres of which 7.0 acres
of land has been encroached upoh and the matter has been taken up with the Government of Karnataka
to shift the un-authorised occupants
(d) The Company has allowed possission of land measuring 45.622 acres and received entire sale consideration
of Rs.7202.10 lakhs and is pending for registration.
(e) The sale proceeds from the above stated land should be transferred to Government of India after incurring
applicable taxes.

115
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
4. Financial assets
Investments In Equity Instruments
Investments at fair value through Other Comprehensive Income (FVTOCI)
Unquoted equity shares (fully paid)
30,00,000 (Previous year: 30,00,000) Equity Shares of 1 Naira each fully - -
paid up in Nigeria Machine Tools Ltd, Nigeria
Total FVTOCI investments - -

Investment in Equity Instruments of Subsidiaries, Associates and Joint

Venture at Cost:
Investments in Joint Venture
1,50,000 (Previous year: 1,50,000) Equity shares of ₨.10 each fully paid up in 15.00 15.00
Sudmo HMT Process Engineers (India) Ltd., Bangalore

Investments in Associates
20,84,050 (Previous year: 20,84,050) Equity Shares of ₨.1 each fully paid up - -
in Gujarat State Machine Tools Corporation Ltd., Bhavnagar

Investment in Subsidiaries
7,20,000 (Previous year: 7,20,000) Equity Shares {including 6,90,000 (Previous 3.00 3.00
year: 6,90,000) Bonus Shares} of ₨.10 each fully paid up in HMT (International)
Ltd, Bangalore
27,65,99,137 (Previous year: 27,65,99,137) Equity Shares of ₨.10 each fully 27,659.91 27,659.91
paid up in HMT Machine Tools Ltd, Bangalore
64,90,100 (Previous year: 64,90,100) Equity Shares of ₨.10 each fully paid up 649.01 649.01
in HMT Watches Ltd, Bangalore

Total Investment in Equity instruments in Subsidiaries and Joint Venture 28,326.92 28,326.92

116
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
31-Mar-24 31-Mar-23
Investments in Preference Shares
Investment in Subsidiaries
4,43,00,000 (Previous year: 4,43,00,000) 3.5% Redeemable Preference Shares 44,300.00 44,300.00
of ₨.100 each fully paid up in HMT Machine Tools Ltd, Bangalore (Subsidiary
Company)
Total Investment in Preference Shares 44,300.00 44,300.00
Total 72,626.92 72,626.92

Less: Allowance for Investments in Subsidiaries

HMT Watches Ltd, Bangalore 649.01 649.01
649.01 649.01

Total Investments 71,977.91 71,977.91

Current
Non Current 71,977.91 71,977.91

Aggregate amount of quoted investments - -

Aggregate amount of unquoted investments 72,626.92 72,626.92
Aggregate amount of impairment in value of investments 649.01 649.01

Additional Information:
HMT Machine Tools Ltd, Bangalore is a BIFR referred Company, and has sought for exemption from payment
of Stamp Duty from Government of Karnataka for issue of share certificates in respect of 26,08,99,037 Equity
Shares and 4,43,00,000, 3.5% Preference Shares. Pending receipt of order, the share certificates are still not
issued by the Company.

117
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
31-Mar-24 31-Mar-23
5. Deferred Tax Assets (Net)
Deferred Tax Asset 73.69 79.80
Less: Deferred Tax Liability 25.76 75.52
47.93 4.28

6. Inventories
Raw Materials and Components 210.12 162.90
Work-in-Progress 326.65 279.44
Finished Goods 57.64 167.75
Stock in Trade 799.52 593.26
Stores and Spares 24.64 21.41
Tools and Instruments 30.21 28.45
Scrap 0.69 0.69
1,449.47 1,253.90
Less: Provision for Non-moving Inventories 274.57 279.09
1,174.90 974.81

7. Trade Receivables
Secured, considered good - -
Unsecured, considered good 1,482.98 1,767.31
Doubtful 7,610.77 9,933.52
9,093.75 11,700.83
Allowance for doubtful debts
Unsecured, considered doubtful 7,610.77 9,933.52
1,482.98 1,767.31
No trade or other receivable are due from directors or other officers of the Company either severally or jointly
with any other person nor any trade or other receivable are due from firms or private companies respectively
in which any director is a partner, a director or a member.

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7A Agewise details
As at the end of current financial year. (Rs. in lakhs)
Outstanding for the following periods from due
date of payment
Particulars Total
Less than 6 months 1 - 2 2 - 3 More than
6 months - 1 year years years 3 years
Undisputed - Considered good 704.52 670.66 74.86 17.68 15.26 1,482.98
Undisputed - Considered doubtful 93.69 93.69
Disputed - Considered good - - - - - -
Disputed - Considered doubtful - - - - 7,517.08 7,517.08
704.52 670.66 74.86 17.68 7,626.03 9,093.75

As at the end of previous financial year.

Outstanding for the following periods from due
date of payment
Particulars Total
Less than 6 months 1 - 2 2 - 3 More than
6 months - 1 year years years 3 years
Undisputed - Considered good 1,705.71 23.47 7.68 4.80 25.65 1,767.31
Undisputed - Considered doubtful 93.69 93.69
Disputed - Considered good - - - - - -
Disputed - Considered doubtful - - - - 9,839.83 9,839.83
1,705.71 23.47 7.68 4.80 9,959.17 11,700.83

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(Rs. in lakhs)
As at As at
31-Mar-24 31-Mar-23
8. Cash and Cash Equivalents:
Current Accounts 615.56 307.76
Deposits with maturity of three months or less - 7,330.08
Cash and Cheques on hand 36.13 0.20
651.69 7,638.04
*Includes Rs. 9.79 lakhs payable to minority Share holders of HMT
Bearings Ltd. (in Escrow Account)
9. Bank balances other than Cash and Cash Equivalents:
Deposits with maturity more than three months but less than 15,693.95 9,839.52
twelve months
Deposits having remaining maturity less than twelve months 1,113.99 391.34
16,807.94 10,230.86

10. Loans
Unsecured
Loans to subsidiaries
Considered Good
HMT Machine Tools Ltd 30,582.41 27,470.43
Total 30,582.41 27,470.43

11. Other Financial Assets

Non-Current
Deposits with Banks exceeding twelve months of maturity 120.75 1,388.83
Interest accrued and due 6.95 27.16
127.70 1,415.99
Current
Interest accrued and due on Bank Deposits 381.58 289.27
Interest accrued and due on Loans to Subsidiaries 5,321.85 5,371.85
5,703.43 5,661.12

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(Rs. in lakhs)
As at As at
31-Mar-24 31-Mar-23
12. Current Tax Asset/(Liability) (Net)
Advance tax/TDS Receivables 652.78 1,034.56
Less: Current Tax provision 69.08 69.08
583.70 965.48
13. Other Current Assets
Non-Current
Deposits 71.74 67.98
71.74 67.98
Current
Advances to subsidiary companies
HMT Machine Tools Ltd 1,288.02 1,198.30
HMT International Ltd 311.51 246.92
1,599.53 1,445.22
Advances and Other Receivables
Advances recoverable in cash or in kind
Secured
Considered Good - -
Unsecured
Considered Good # 778.55 1,162.72
Considered Doubtful 362.27 378.18
1,140.82 1,540.90
Less: Allowance for Doubtful Advances 362.27 378.18
778.55 1,162.72

Interest on Trade Receivable 8,217.64 5,924.75

Less: Allowance for interest on Trade Receivable 8,217.64 5,924.75
- -
Collector of customs - -
Deposits 177.53 161.57
2,555.61 2,769.51

Additional Information:
# Includes
(a) 446.02 acres of land at Pinjore, Haryana has been transferred to HSIIDC (412.69 acres) and Indian Railways
(33.33 acres) during the year 2019-20 and as on 31.3.2024 an amount of Rs.4.99 lakhs (Rs.4.99 lakhs
Previous year) is due from HSIIDC.
(b) Advances to Joint Ventures Rs.3.40 lakhs (Rs.8.70 lakhs Previous Year)

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. In lakhs)
As at 31-March-24 As at 31-March-23
No Amount No Amount
14 Equity Share Capital
Authorised Share Capital:
Equity shares of Rs.10 each 1,23,00,00,000 1,23,000.00 1,23,00,00,000 1,23,000.00
1,23,00,00,000 1,23,000.00 1,23,00,00,000 1,23,000.00

Issued, Subscribed & Paid up:

Equity shares of Rs.10 each
At the beginning of the year 35,56,01,640 35,560.16 35,56,01,640 35,560.16
Issued during the year - - - -
Reduction during the year - - - -
At the end of the year 35,56,01,640 35,560.16 35,56,01,640 35,560.16
Additional Information:
1 Equity Shares:
The Company has only one class of equity shares having par value of Rs.10/- per share. Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian
rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
2 Details of shareholders holding more than 5% shares in the Company:
Name of the Shareholder No of shares Percentage No of shares Percentage
Equity Shares:
Hon'ble President of India 27,95,66,626 78.62% 27,95,66,626 78.62%
Special National Investment Fund 6,75,38,614 18.99% 6,75,38,614 18.99%

3 Shares held by promoters at the end of the year

No. of Share at
No. of Share at the % of total % change during
Promoter Name the end of the
begining of the year Shares the year
year
Hon'ble President of India 27,95,66,626 27,95,66,626 78.62% -

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. In Lakhs)
As at As at
31-Mar-24 31-Mar-23
15 Other Equity:
i) General Reserve:
As per last Balance Sheet 13,453.11 13,453.11

ii) Retained Earnings:

As per last Balance Sheet (3,879.55) (4,585.37)
Adjustments:
Amount transferred from Statement of Profit & Loss 2,442.41 705.82
(1,437.14) (3,879.55)

iii) FVTOCI Reserve:

As per last Balance Sheet (1,740.82) (1,761.55)
Adjutments:
On implementation of Ind AS
- Reclassification of acturial gain/losses on defined benefit plans 42.64 20.73
(1,698.18) (1,740.82)
Total 10,317.79 7,832.74

16. Borrowings
Current
Unsecured
Current maturities of long-term Debts - -
Loan from Govt. of India (Defaulted) (Refer foot note 1 below) 64,158.00 64,158.00
Interest free loan from Government of India (Defaulted) (refer 13.74 13.74
foot note 2 below)
Total current borrowings 64,171.74 64,171.74
Aggregate Secured loans - -
Aggregate Unsecured loans 64,171.74 64,171.74

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

1. Period and amount of Default are as follows:
Nature of Borrowing Amount of installment and period of No of Days
Name of the lender
[Interest Free] default (Rs. In Lakhs) Delay or Unpaid
i) Government of India Loan Government of India a)      Rs.6,073.60 Lakhs due since 2,260
[Interest Free] dated 21.01.2017 21.01.2018.
b)     Rs.6,073.60 Lakhs due since 1,895
21.01.2019.
c)      Rs.6,073.60 Lakhs due since 1530
21.01.2020.
d)     Rs.6,073.60 Lakhs due since 1164
21.01.2021.
e)     Rs.6,073.60 Lakhs due since 799
21.01.2022.
ii)   Government of India Loan Government of India a)      Rs.4,800 Lakhs due since 2,234
[Interest Free] dated 16.02.2017 16.02.2018.
b)      Rs.4,800 Lakhs due since 1869
16.02.2019.
c)      Rs.4,800 Lakhs due since 1504
16.02.2020.
d)      Rs.4,800 Lakhs due since 1,138
16.02.2021.
e)      Rs.4,800 Lakhs due since 773
16.02.2022.
iii) Government of India Loan Government of India a)      Rs.1,958 Lakhs due since 2,162
[Interest Free] dated 29.04.2017 29.04.2018.
b)      Rs.1,958 Lakhs due since 1797
29.04.2019.
c)      Rs.1,958 Lakhs due since 1431
29.04.2020.
d)     Rs.1,958 Lakhs due since 1,066
29.04.2021.
e)     Rs.1,958 Lakhs due since 701
29.04.2022
2. During the FY 2018-19 the Company has received Rs.13.74 lakhs towards reimbursement of consultancy
charges paid to IIM, Bangalore for Financial & Strategic Review of consolidation & restructuring plan of
the Company. However, the Company is in process of obtaining clarification from Department of Heavy
Industries whether the same is grant or loan. Based on the clarification the same will be treated as
income or borrowing in the year of confirmation from department of Heavy Industries.

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. In Lakhs)
As at As at
31-Mar-24 31-Mar-23
17. Non current financial liability
Deferred Government Grant - -

18. Provision for employee benefits

Non Current
Gratuity (118.93) (10.99)
Earned Leave Encashment 134.10 135.51
Settlement Allowance 33.81 41.36
Provident Fund 41.89 75.13
90.87 241.01
Current
Gratuity 140.48 46.02
Earned Leave Encashment 52.68 27.97
Settlement Allowance 8.78 2.06
Wage and Salary Revision arrears (1992-1995) 54.88 54.88
256.82 130.93

19. Trade payables

Total outstanding dues to Micro, Small & Medium Enterprises 150.90 10.52
Total outstanding dues of creditors other than Micro, Small & 1,693.70 417.56
Medium Enterprises
Total 1,844.60 428.08

19A Agewise details

As at the end of current financial year:
Outstanding for the following periods from due date of
payment
Particulars Total
Less than more than
1 - 2 years 2 - 3 years
1 year 3 years
MSME 150.00 0.59 - 0.31 150.90
Others 1,265.03 279.95 2.25 146.47 1,693.70
Disputed dues - MSME -
Disputed dues - Others -
1,415.03 280.54 2.25 146.78 1,844.60

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

As at the end of Previous financial year: (Rs. In Lakhs)

Outstanding for the following periods from due date of
payment
Particulars Total
Less than more than
1 - 2 years 2 - 3 years
1 year 3 years
MSME 10.52 - - - 10.52
Others 266.82 3.10 4.20 143.44 417.56
Disputed dues - MSME - - - - -
Disputed dues - Others - - - - -
277.34 3.10 4.20 143.44 428.08
The details of amounts outstanding to Micro, Small and Medium Enterprises ("MSMED") based on
information available with the Company is as under:

Particulars 31-Mar-24 31-Mar-23

Principal amount due and remaining unpaid 150.90 10.52
Interest due on above and the unpaid interest 2.00 2.00
Interest remaining due and payable in the succeeding year until the - -
dues are actually paid
Interest paid * - -
Interest accrued and remaining unpaid at the end of the accounting 2.00 2.00
year.
* includes amount reversed on account of final settlment made with
MSMED vendors.

20. Other Financial Liabilities

3.5% preference Share Capital (Defaulted) 3,686.00 3,686.00
Total 3,686.00 3,686.00

Additional information:
1. 3.5% Preference Share Capital
Each Redeemable Preference Shares has a par value of Rs.100/- per share and is redeemable after 3 years. The
preference shares carry a dividend of 3.5% per annum and conversion of cumulative dividend into equity shares on
accrual. The dividend rights are cumulative. The preference shares rank ahead of the equity shares in the event of
a liquidation.
In accordance with the CCEA approval and DHI's directions thereon during January 2016, 3.5% Redeemable
Preference Shares of 4,06,14,000 no's (Rs.40,614.00 lakhs) out of 4,43,00,000 no's of Rs.100/- each (Rs.44,300.00
lakhs) has been extinguished and set off against the Loans and advances to subsidiaries companies provided by the
Company to HMT Watches Limited, HMT Chinar Watches Limited and HMT Bearings Limited.
For the remaining 3.5% Redeemable Preference Shares the revival Plan sanctioned to the Company vide sanction
No F.No.5.1(1)/2005.PE.X dated 29 March 2007 has specified for redemption of Preference Share Capital out of
sale proceeds of the identified surplus assets of HMT Machine Tools Ltd. Since the sale of identified assets has not
taken place which is pre-condition for redemption, remaining 3.5% Redeemable Preference Share Capital is not
redeemed .
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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. In Lakhs)
As at As at
Particulars 31-Mar-24 31-Mar-23
21. Other Liabilities
Current
Dues to subsidiary companies - -
Revenue received in advance 90.79 1,007.12
Advance received against sale of land [(Ref: Note No.3C- 8,128.74 8,128.74
Additional information (d) &(e)]
Accrued Expenses 1,510.99 1,558.38
Other liabilities (Earnest Money Deposit,Statutory dues,etc.,) 6,956.79 8,371.38
Total 16,687.31 19,065.62

22. Current Tax Liabilities

Current Tax provision 320.00 1,180.00
Less: Advance tax/TDS Receivables 249.92 285.34
Total 70.08 894.66

23. Provisions - others

Warranty Provision for
Others Total
Claims Indirect Taxes
As At 1 April 2023 7.04 1.25 277.06 285.35
Arising during the year 2.84 - - 2.84
Utilised - - - -
Unused amounts reversed - -. - -
As At 31 March 2024 9.88 1.25 277.06 288.19
Current 9.88 1.25 277.06 288.19
-
As At 1 April 2022 6.39 1.25 277.31 284.95
Arising during the year 4.50 - - 4.50
Utilised (3.85) - (0.25) (4.10)
Unused amounts reversed - . - -
As At 31 March 2023 7.04 1.25 277.06 285.35
Current 7.04 1.25 277.06 285.35

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
24. Revenue from operations
Sale of Products
Food Processing Machinery 764.34 575.12
Watches 1,158.66 726.22
Spares and Accessories 108.69 151.37
Revenue from Powder Project 2,679.58 3,679.63
4,711.27 5,132.34
Sale of Services
Sundry Jobs and Miscellaneous Sales 79.97 12.21
Packing / Forwarding charges - 14.70
79.97 26.91
Revenue from Operations 4,791.24 5,159.25

25. Other income

Interest Income
Interest income on Bank Deposits 1,206.97 693.89
Interest income on Holding Company loans 1,544.11 1,412.40
Interest from Dealers/Others 30.18 0.38
2,781.26 2,106.67

Dividend Income
Dividend received from subsidiaries - -

Other Income
Recoveries from Staff/Others 357.14 345.70
Royalties from Subsidiaries 8.82 3.86
Rental Income 1,776.56 1,973.18
Profit on Sale of Property, Plant and Equipment - 76.48
Provisions Written back 84.47 125.77
Amortisation of Govt. Grant - 11.13
Other non operating Income 118.47 194.54
2,345.46 2,730.66
Total Other Income 5,126.72 4,837.33

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
26. Cost of Materials Consumed
Raw materials and Components
Inventory at the beginning of the year 162.90 194.49
Add: Purchases 3,480.16 4,190.09
3,643.06 4,384.58
Less: inventory at the end of the year 210.12 162.90
Cost of raw material and components consumed 3,432.94 4,221.68
Consumption of Stores, Spares, Tools & Packing Materials 22.29 63.92
Total raw materials and components consumed 3,455.23 4,285.60

Particulars of Materials Consumed

Steel 107.44 82.47
Non-ferrous Castings 14.46 10.66
Standard parts & components 2,571.65 4,115.65
Others 739.39 12.90
Total 3,432.94 4,221.68
27. Changes in Inventory
Finished Goods
Inventory at the beginning of the year 167.75 131.26
Less: inventory at the end of the year 57.64 167.75
Changes in Inventory 110.11 (36.49)
Work in Progress
Inventory at the beginning of the year 279.44 268.71
Less: inventory at the end of the year 326.65 279.44
Changes in Inventory (47.21) (10.73)
Stock in Trade
Inventory at the beginning of the year 593.26 461.68
Less: inventory at the end of the year 799.52 593.26
Changes in Inventory (206.26) (131.58)
Scrap
Inventory at the beginning of the year 0.69 0.69
Less: inventory at the end of the year 0.69 0.69
Changes in Inventory - -
Total (143.36) (178.80)

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
28. Employee benefits expense
Salaries,Wages and Bonus 609.86 585.15
House Rent Allowance 25.62 28.74
Gratuity 18.53 19.47
Contribution to PF & FPS 61.25 60.38
Deposit Linked Insurance 0.17 1.01
Welfare Expenses 39.44 39.52
754.87 734.27

29. Depreciation and amortization

Depreciation of tangible assets 191.61 191.12
Depreciation on Investment Properties 18.93 19.72
210.54 210.84
30. Finance costs
Interest Expense
Interest Expense (GoI Loans) - 11.13
Others 0.01 0.01
Other Borrowing Cost
Discounting Charges 0.31 1.55
Total finance costs 0.32 12.69
31. Other expenses
Manufacturing Expenses
Power and Fuel 29.94 30.65
Selling & Distribution Expenses
Advertisement and Publicity 8.15 7.04
Carriage outwards 9.17 2.94
Establishment Expenses
Rent 27.28 -
Rates and Taxes 452.56 276.87
Insurance 11.16 11.98
Water and Electricity 366.40 364.07
Printing and Stationery 13.06 10.21
Auditors Remuneration # 2.52 2.69
Provision for Doubtful Debts,Loans and Advances - 191.84
Warranty claims 2.84 4.50

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
Loss sustained by PF Trust 10.11 39.17
Bad Debts 1,549.57 1,398.11
Travelling Expenses 26.96 28.01
Repairs and Maintenance-Other than Machinery 461.22 345.24
Security Charges 227.58 198.54
Casual Labour charges 363.88 348.80
Corporate Social Responsibility 56.55 60.91
Other Expenses 332.36 187.92
Less: Recovery of Common Expenses from Subsidiary Companies (58.29) (68.12)
3,893.02 3,441.37

# As auditor 2.07 2.07

For taxation matters 0.20 0.20
For other services 0.25 0.42
2.52 2.99

Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, read with gudelines issued by DPE, the Company is required to
spend, in every financial year, at least two percent of the average net profits of the Company made during the
three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expnesess
for the year are as under:
i) Amount required to spend during the year 56.55 60.91
ii) Shortfall amount from the previous year 42.71 41.83
99.26 102.74
iii) Amount spent during the year
- on the project in Health and Nutrition Sector- supply of
> Water Purifier & health care products to Govt. Schools at Yadgir District - 0.80
> HB Testing Machines and HBD Testing Strips, Yadgir District - 14.67
> Ambulence to KC General Hospital, Bangalore - 21.19
> Oxigen Cylinder to " Mandya Institute of Medical Sciences, Mandya - 4.58
> Mid day meal plan, the Akshya Patra Foundation, Ajmer - 5.00
> Reusable Sanitary Napkins to Women, Yadgir District 0.75 10.90

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
> Artificial Aids and Assistive Divices to Divyangjans/Senior Citizens/
Disabled persons through Alimico, Bangalore 20.70 2.30
> Artificial Aids and Assistive Divices to Divyangjans/Senior Citizens/
Disabled persons through Alimico, Chikkamangaluru 15.00 -
> Musical Instruments, Bilnd walking sticks etc. to M/s Bless
Society of Rural and Urban Development & M/s Swavalamban
Angavikala Seva Charitable Trust, Bangalore 5.00 -
> Administrative expenses 0.44 -
- Transfer to PM National Relief Fund 28.75 0.59
Total amount spent during the year 70.64 60.03
iv) CSR Reserve (amount c/f i.e. shortfall at the end of the year 28.62 42.71
{inclusive of administrative expenses}
Reasons for Shortfall: The Company has identified certain CSR ongoing activities in the area of Health ,
Nutrition, Education etc as referred below:
a) Reusable Sanitary Napkins to Women, Aritificial Aids and Assistive
divices
b) Supply of Blazer / Jackets to Girl Students in Karnataka Public School,
Bangalore
c) Supply of Cardiac Ambulance to Government Medical College,
Aurangabad

32. Exceptional Items - -

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-03-2024 31-03-2023
33 Contingent Liabilities
Claims against the company not acknowledged as debt:
a) Tax related claims pending in appeal
i) Sales Tax - 53.64
ii) Income Tax 37.92 37.92
b) Non receipt of related Forms against levy of concessional Sales Tax - -
c) Employee related claims relating to Lockouts, Back wages, 52.64 52.64
Incentive & Annual bonus, etc., pending adjudication, to the extent
ascertainable
d) Various cases relating to defective product, accident causing 4154.95 4,154.95
injuries to third parties, claims relating to supply of materials etc.
e) Various legal cases relating to employees and other contingent 9,896.80 9,896.80
liabilities pertaining to HMT Watches Ltd (Ref: Note No.52)
f) Liability towards interest, penalty/damages as per 14B of 23.89 23.89
Employees Provident Fund and Misc. provision Act, 1952
g) Guarantees and Counter Guarantees and LCs issued [(including 8,127.61 9,649.58
Rs.8045.00 Lakhs and Rs.9454.00 lakhs (previous year) against
Corporte Guarantee of Rs.12272 lakhs issued to HMT Machine
Tools Ltd)]
h) Income tax deducted at source demand under the traces software 79.12 79.40
for short and non remittances of tax deduction at source – matter
under examination.
i) Disputed Lease Rentals in respect of premises occupied by the 311.77 311.77
Company upto April 2010 at Jeevan Tara Building belongs to LIC of
India, New Delhi.
j) Stock Exchanges have levied penalties to Company for the certain 508.47 394.77
Non-Compliances under the SEBI (LODR) Regulations, 2015
like Composition of Board of Directors, Committees, delay in
submission of accounts etc. As per the circulars of Stock Exchanges,
listed entities are required to comply with the provisions of the
Exchange circular before filing the waiver applications to the
Exchange. Accordingly, in some of the cases, Company has got
waiver of penalties from stock exchanges. The Company has again
requested for waiver of penalties from Stock Exchanges. Total
penalty amount (approx.):

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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
34 Other Disclosures:
i) (a)The GOI had released a Plan Assistance of Rs. 200 lakhs to the Company during March 2007 to
meet the Capital Expenditure of HMT Watches Ltd, the wholly owned Subsidiary, in the form of Equity
(Rs.100 lakhs) & Loan (Rs.100 lakhs). In view of the non utilisation of the funds by the Subsidiary
within the stipulated period, GOI had instructed the Company during December 2009 for refund of
the total Plan Assistance of Rs. 200 lakhs. Accordingly, the Company has refunded the Loan amount
of Rs. 100 lakhs to GOI during February 2010. However, with regard to refund of Equity portion, since
the Company has already issued 10,00,000 Equity Shares of Rs. 10/- each (Rs. 100 lakhs) in favour of
President of India during April 2007, as per the terms of GOI sanction, the same could not be carried
out, as it would amount to reduction in Share Capital requiring the approval of the Share Holders and
completion of other statutory formalities as per the Companies Act and applicable rules in this regard,
and the same has been communicated to GOI. Further instructions are awaited from GOI on the same.
ii) Other Liabilities Includes an advance received against sale of land represents Rs.926.64 lakhs from M/s
Raman Research Insiitute (RRI) towards sale of land and buildings at Bangalore and Rs.7202.10 lakhs
(including TDS) from the Government of Uttarkhand (GOUK) the value of the land has been included
under Non-current assets held for sale. Though the Company has executed an Agreement to sell
and possession of land given to the purchaser in respect of RRI and part possession of land to the
purchaser in respect of GOUK, the transaction has not been recongised as sale pending approval from
the Concerned Authorities for execution of Sale Deed.
35 Preference Share Capital:
(i)
Government of India while approving the Revival Plan of HMT Machine Tools Ltd (HMT-MTL), a
Subsidiary Company, during March 2007, had accorded sanction for cash infusion of `Rs.44,300 lakhs
in the form of 3.5% Preference Share Capital which was routed through the Company for investment in
the Preference Share Capital in the Subsidiary, to be redeemed after 3 years i.e. 31.3.2010 out of sale
of surplus immovable Properties of HMT-MTL.
However, as per the CCEA approval 40614000 No. of Shares has been extinguished out of 44300000
Nos. of Rs.100/- each, leaving a balance shares of 36,86,000 of Rs.100/- each which is proposed to be
redeemed upon sale of immovable property.
(ii) Arrears of fixed cumulative dividends on preference shares (including tax 5,607.63 5,607.63
thereon) payable to Government of India

36 Advances:-
Advances include
Adhoc payments to employees towards Wage/Salary, DA arrears, if any, 24.29 24.29
pending adjustment & provision to this extent has been made in the
accounts

134
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
37 Transactions with Key Managerial Personnel
Compensation of key management personnel of the Company
i) Short-term employee benefits 23.24 20.80
ii) Post - employment benefits 3.26 2.91
iii) Other long term benefits 1.79 1.48
Total compensation paid to key management personnel 28.29 25.19

38 A Fair Values
Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial
instruments, other than those with carrying amounts that are reasonable approximations of fair values

Carrying amount Fair value

31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
Financial assets
Loans - Fair value through Profit & loss 30,582.41 27,470.43 30,582.41 27,470.43
Total 30,582.41 27,470.43 30,582.41 27,470.43

Financial liabilities
Fair value through profit & loss - - - -
Interest Free Government of India Loan 64,171.74 64,171.74 64,171.74 64,171.74
Total 64,171.74 64,171.74 64,171.74 64,171.74

The Company has assessed that cash and cash equivalents, trade receivables, trade payables, bank
overdrafts and other current liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments. The Company has also assessed that the Government of India
("GOI") loan excluding interest free GOI loan approximate their carrying amounts as transaction costs
are not levied
The Fair Value of Interest Free Government of India Loan is arrived by discounting the loan amount for
a repayment period of 5 years. For the purpose of calculation 8% is considered as the effective rate of
Interest
The company has defaulted 3.5% preference shares which are already matured for redemption and
hence no fair valution has been made in the accounts.

135
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
38B Fair value Hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy
together with a quantitative sensitivity analysis as at 31 March 2024, 31 March 2023 are as shown below:

Quantitative disclosures fair value measurement hierarchy for assets as at 31 March 2024 (Rs in Lakhs)
Fair value measurement using

Particulars Total Quoted prices Significant Significant

in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Date of Valuation
valuation technique
Assets measured at fair value:

136
FVTOCI financial investments:
Unquoted equity shares
Nigeria Machine Tools Ltd - - -
Assets for which fair values are disclosed
Investment properties
Land* 31-Mar-24 4,32,935.93 4,32,935.93
Financial Liability
Interest Free Government of India Loan 31-Mar-24 64,171.74 64,171.74
Annual Report 2023 - 24
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

Quantitative disclosures fair value measurement hierarchy for assets as at 31 March 2023 (Rs in Lakhs)
Fair value measurement using

Particulars Total Quoted prices Significant Significant

in active observable unobservable
markets inputs inputs
(Level 1) (Level 2) (Level 3)
Date of Valuation
valuation technique

Assets measured at fair value:

FVTOCI financial investments:
Unquoted equity shares

137
Nigeria Machine Tools Ltd - - -
Assets for which fair values are disclosed
Investment properties
Land* 31-Mar-23 2,27,020.15 2,27,020.15
Financial Liability
Interest Free Government of India Loan 31-Mar-23 8% 64,171.74 64,171.74
Effective
Rate of
Interest
used
* Based on guidance value not restated in the financial statements since Investment property

A) Nigeria Machine Tools Ltd is a company incorporated outside India, and as per its latest audited balance sheet dated 31-12-
Annual Report 2023 - 24

2020 net worth is completly eroded and hence the fair value at Rs. NIL is considered.
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

(Rs. in lakhs)
Particulars 31-Mar-24 31-Mar-23
39. Earnings per share (EPS)
Profit attributable to equity holders:
Continuing operations 2,442.41 705.82
Discontinued operations - -
Profit attributable to equity holders for basic earnings 2,442.41 705.82

Profit attributable to equity holders adjusted for the effect of dilution 2,442.41 705.82

Weighted average number of Equity shares for basic EPS 35,56,01,640 35,56,01,640
Effect of dilution:
Convertible preference shares
Weighted average number of Equity shares adjusted for the effect of 35,56,01,640 35,56,01,640
dilution *
Earnings per share for continuing operations
i) Basic, profit from continuing operations attributable to equity holders 0.69 0.20
ii) Diluted, profit from continuing operations attributable to equity holders 0.69 0.20

Earnings per share for discontinuing operations

i) Basic, profit from discontinuing operations attributable to equity holders - -
ii) Diluted, profit from discontinuing operations attributable to equity - -
holders
* There have been no other transactions involving Equity shares or potential Equity shares between the
reporting date and the date of authorisation of these financial statements.

138
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NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

40 As per Indian Accounting Standard - 19 "Employee Benefits", the disclosures as defined

are given below:

i) Defined Contribution Plan: (Rs. In Lakhs)

Year Ended Year Ended
Particluars
31-Mar-24 31-Mar-23
Employer's Contribution to Pension Fund 4.54 5.40

ii) Defined Benefit Plans:

The Company contributes to Provident Fund trust, Gratuity and settlement allowance to the employees
which are defined benefit plans.
a) The principal assumptions used in determining defined benefit obligation of the Company's plan is
shown below:

31-Mar-24 31-Mar-23
% %
Discount rate:
Gratuity plan 7.23 7.52
Settlement Allowance 7.23 7.52

Future salary increases:

Gratuity plan 10.00 10.00
Settlement Allowance 10.00 10.00

Summary of Demographic Assumptions Gratuity Plan Settlement Allowance

31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
Mortality Rate (as % of IALM (2012-14) (Mod.) Ult. Mortality 100% 100% 100% 100%
Table) {Previous Year IALM (2012-14) Ult. Mortality Table}
Disability Rate (as % of above mortality rate) 0% 0% 0% 0%
Withdrawal Rate 1% to 3% 1% to 3% 1% to 3% 1% to 3%
Attrition Rate
Normal Retirement Age 60 yrs 60 yrs 60 yrs 60 yrs
Average Future Service 18.48 19.81 18.48 19.81

139
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
40 Employee Benefits (Contd.):
A. Employee Benefit Obligations
The cost of the defined benefit gratuity plan and Settlement Allowance and the present value of the gratuity obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.
1) Gratuity
31 March 2024 changes in the defined benefit obligation and fair value of plan assets
(Rs. In lakhs)
Gratuity cost charged to
Remeasurement gains/(losses) in other comprehensive income
profit or loss
Return on
Actuarial Actuarial
plan assets
Sub-total Benefits changes changes Contributions
Particulars 01-Apr-23 Net (excluding Sub-total 31-Mar-24
Service included paid arising from arising from Experience by employer
interest amounts included
cost in profit changes in changes in adjustments
expense included in in OCI
or loss demographic financial
net interest
assumptions assumptions

140
expense)

Defined (365.32) (15.90) (26.72) (42.62) 19.99 (7.11) (5.26) 37.27 24.90 (363.05)
benefit
obligation
Fair value of 330.29 24.09 24.09 (19.99) 7.11 7.11 - 341.50
plan assets
Benefit (35.03) (18.53) - 32.01 - (21.55)
liability
Annual Report 2023 - 24
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
31 March 2023 changes in the defined benefit obligation and fair value of plan assets (Rs. In lakhs)
Gratuity cost charged to
Remeasurement gains/(losses) in other comprehensive income
profit or loss
Return on
Actuarial Actuarial
plan assets
Sub-total Benefits changes changes Contributions
Particulars 01-Apr-22 Net (excluding Sub-total 31-Mar-23
Service included paid arising from arising from Experience by employer
interest amounts included
cost in profit changes in changes in adjustments
expense included in in OCI
or loss demographic financial
net interest
assumptions assumptions
expense)
Defined (596.38) (15.94) (33.45) (49.39) 272.66 (20.69) 4.82 23.66 7.79 - (365.32)
benefit
obligation
Fair value of 543.41 29.92 29.92 (272.66) 20.69 20.69 8.93 330.29
plan assets
Benefit (52.97) (19.47) - 28.48 8.93 (35.03)
liability

2) Settlement Allowance:

141
31 March 2024 changes in the defined benefit obligation and fair value of plan assets
Defined Benifit cost
Remeasurement gains/(losses) in other comprehensive income
charged to profit or loss
Return on
Actuarial Actuarial
plan assets
Sub-total Benefits changes changes
Particulars 01-Apr-23 Net (excluding Sub-total
Service included paid arising from arising from Experience Contributions
interest amounts included 31-Mar-24
cost in profit changes in changes in adjustments by employer
expense included in in OCI
or loss demographic financial
net interest
assumptions assumptions
expense)

Defined (43.42) - (3.19) (3.19) 1.97 (1.56) 3.61 2.05 (42.59)

benefit
obligation
Fair value of
plan assets
Benefit (43.42) (3.19) 1.97 2.05 - (42.59)
Annual Report 2023 - 24

liability
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
31 March 2023 changes in the defined benefit obligation and fair value of plan assets
(Rs. In lakhs)
Defined Benifit cost
Remeasurement gains/(losses) in other comprehensive income
charged to profit or loss
Service Net Sub-total Return on Actuarial Actuarial Experience Sub-total
cost interest included plan assets changes changes adjustments included
Benefits Contributions
Particulars 01-Apr-22 expense in profit (excluding arising from arising from in OCI 31-Mar-23
paid by employer
or loss amounts changes in changes in
included in demographic financial
net interest assumptions assumptions
expense)

Defined (51.94) - (3.34) (3.34) 11.99 1.57 (1.70) (0.13) (43.42)

benefit
obligation
Fair value of
plan assets
Benefit (51.94) (3.34) 11.99 (0.13) - (43.42)
liability

142
3) Provident Fund (interest shortfall):
The Company's Contribution paid / payable to Provident Fund and the liability / obligation is recognised on accrual basis. The
Company's Provident Fund Trust is exempted u/s section 17 of the Employees Provident Fund and Miscellaneous Provisions Act,
1952. The condition for grant of exemptions stipulate that the employer shall make good deficienty, if any, in the interest rate
declared by the Trust vis-a-vis Statutory rate. The Company does not anticipate any further obligations in the near forseeable
future having regard to the assets of the fund and return on investment.
The Company has recognised the obligation on the basis of Actuarial Valuation carried out during the year. The present value
of obligation due to difference between the expected interest rate to be earned by the Trust and expected future EPFO interest
rate, being the interest shortfall of Rs.41.89 Lakhs as on 31.3.2024 and Rs. 75.13 lakhs as on 31.3.2023.
Annual Report 2023 - 24
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

40 Employee Benefits (Contd.):
B Sensitivity analysis:
The key actuarial assumptions to which the defined benefit plans are particularly sensitive to are
discount rate and fully salary escalation rate. The following table summarises the impact on the
reported defined benefit obligation at the end of the reporting period arising on account of an increase
or decrease in the assumptions by 100 basis points:

(i) Gratuity (Rs. In lakhs)

As at 31 March 2024 As at 31 March 2023
Particulars
Decrease Increase Decrease Increase
Change in discounting rate 17.13 20.27 17.56 20.45
Change in rate of salary increase 9.73 8.50 9.60 8.84
Change in withdrawal rates 1.07 1.27 0.80 0.99

(ii) Settlement Allowance (Rs. In lakhs)

As at 31 March 2024 As at 31 March 2023
Particulars
Decrease Increase Decrease Increase
Change in discounting rate 4.97 6.88 5.43 6.88
Change in rate of salary increase 5.12 6.29 5.57 6.90
Change in withdrawal rates 5.36 6.25 5.84 7.45
C. The expected contributions for Gratuity for the next financial year Rs.21.55 Lakhs and Settlement
allowance Nil.

143
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

41 RELATED PARTY TRANSACTIONS & DISCLOSURE U/S 186 OF THE COMPANIES ACT, 2013
Sr. Name of Related Party Relationship
No.
1 HMT Machine Tools Ltd, Bangalore (MTL)
HMT Watches Ltd, Bangalore (HWL) Subsidiary
HMT (International) Ltd, Bangalore (HMT(I)
2 SUDMO HMT Process Engineers (India) Ltd,
Joint Venture
Bangalore
3 Gujarat State Machine Tools Corporation,
Associate
Bhavnagar
4 Mr. Pankaj Gupta (w.e.f. 25.08.2022 upto
24.11.2023)
Mr. Rajeev Singh (w.e.f. 30.12.2023 upto
08.03.2024)
Mr. Krishnaswami Revishankar (w.e.f. 08.03.2024)
Ms. Arti Bhatnagar (w.e.f. 14.02.2023)
Dr. Renuka Mishra (w.e.f. 12.09.2022 upto Key Managerial Persons (KMP)
04.09.2023)
Ms. Mukta Shekhar (w.e.f. 04.09.2023)
Ms. Rita Saxena (w.e.f 25.08.2023)
Mr. S. Kishor Kumar
Ms. Aparna R (w.e.f. 10.11.2023)
Ms. Kamna Mehta (upto 09.11.2023)

144
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

Transactions during the year with Related Parties:
Loans and Advances given and repayment thereof:
(Rs. In Lakhs)
Opening Loans Repay- Closing
Name of Related Party As at transfers
Balance Given ment Balance
a) Loans
HMT Machine Tools Ltd Current year 27,470.43 3,111.98 - 30,582.41
Previous year 24,573.58 1,515.00 1,381.85 27,470.43
Interest accred & due on HC Current year 5,371.85 - - (50.00) 5,321.85
Loan Previous year

b) Advances (Dr / (Cr))

Advance Advance
Opening Closing
Name of Related Party As at Given taken transfers
Balance Balance
(Net) * (Net)
SUDMO HMT Process Current year 8.70 3.40 - (8.70) 3.40
Engineers (India) Ltd Previous year 4.83 3.87 8.70
HMT Machine Tools Ltd Current year 1,198.30 89.72 - - 1,288.02
Previous year 7,871.16 80.84 - (6,753.70) 1,198.30
HMT Watches Ltd Current year - 76.13 - (76.13) -
Previous year (987.83) 2,403.49 - (1,415.66) -
HMT (International) Ltd Current year 246.92 64.59 - - 311.51
Previous year 190.22 56.70 - - 246.92

* Advance includes reimbursement of expenses payable

c) The investments in related parties i.e. Subsidiaries, associates and Joint Venture are detailed under
Note No.4
The Company has not given any guarantee/security to the related parties during the year.

145
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

d) Name of the Transacting Related Party (Rs. In Lakhs)

MTL HWL CWL HMT(I) BLH TOTAL
Revenue from Operations Current year - - - 39.83 - 39.83
Previous year - - - - - -
Other Income: Current year 1544.11 5.38 - - - 1,549.49
Previous year 1398.11 31.93 - - - 1,430.04
Dividends Current year - - - - -
Previous year - - - - -
Purchases Current year - - - - -
Previous year - - - - -
General Expenses:
Other Expenses Current year 1544.11 - - - 1,544.11
Previous year 1398.11 - - - 1,398.11
Recovery of Expenses Current year (19.05) - - (39.24) - (58.29)
Previous year (12.58) (3.90) - (51.64) - (68.12)
Interest - - - - - -
(Rs. In Lakhs)
e) Transactions with Key Managerial Persons: Current Year Previous Year
Remuneration paid to KMP
- S.Kishore Kumar 15.87 14.63
- Kamna Mehta 6.84 10.56
- Aparna R 5.58 -
28.29 25.19

Directors sitting fees

- Vishweshwar Bhatt - 0.66
- Ramji Lal - 0.91
- 1.57

146
 NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS
42 Ratio Analysis
Ratio Numerator Denominator FY FY % Reason for Variance for more
2023-24 2022-23 Variance than 25%
1 Current Ratio Current Assets Current Liabilities 0.68 0.65 4.62%
2 Debt-Equity Ratio Total Debt Shareholder's Equity 1.48 1.56 -5.13%
3 Debt Service Earnings Debt service (Interest 0.03 0.03 0.00%
Coverage Ratio available for debt + Principal)
service(EBITDA)
4 Return on Equity Net Profit after Average 5.47% 1.64% 233.59% Due to increase in Profit after
Ratio taxes Shareholder's equity tax on account of reduction
in material consumption and
withdrawal of tax provision
during the year
5 Inventory turnover Sales Average Inventory 4.46 5.69 -21.73% Increase in Sales
ratio
6 Trade Receivables Credit Sales Average Trade 2.95 5.16 -42.92% Increase in Trade receivable
turnover ratio receivables
7 Trade payables Net Credit Average Trade 3.08 13.97 -77.94% Increase in Trade payables
turnover ratio Purchases/Services Payables

147
8 Net capital turnover Net Sales Average Working (0.16) (0.15) 7.28% Increase in Net Sales
ratio Capital
9 Net profit ratio Net Profit before Revenue 50.98% 13.68% 272.62% Due to increase in Profit after
taxes tax on account of reduction
in material consumption and
withdrawal of tax provision
during the year
10 Return on Capital Earnings before Capital Employed = 1.54% 1.34% 14.61%
employed interest and taxes Tangible Networth +
Total Debt
11 Return on Not applicable Not applicable As there is no return on
Investment investment therefore Nil
Annual Report 2023 - 24
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

43 SEGMENT REPORTING:
As per Ind AS - 108 "Operating Segment", segment information has been provided under the notes to
consolidated financial statements.
During the year Food Processing Division has made a sale of Rs.2679.58 Lakhs to one customers which
exceed 10% of the revenue.
44 Deferred Tax
Provision for income taxes has been made in terms of Ind AS 12 -Income Taxes.

Movement in deferred tax asset/(liability) (Rs. In lakhs)

Particulars 31.3.2024 31.3.2023
Net deferred Tax asset/(liability) at the beginning of the year 4.28 24.64
Add: deferred Tax benefits / (charges) for the year 43.65 (20.36)
Net deferred Tax asset/liability at the end of of the year 47.93 4.28

The net Deferred Tax Asset as at 31st March 2024 comprises the tax impact arising from the timing
differences on account of:
Particulars 31.3.2024 31.3.2023
Depreciation (25.76) (75.52)
Provision for employee benefits 73.69 79.80

The Company has not recognised defferred tax asset on unusable tax losses in the absence of resonable
certainity of future business profits.
45 Considering the realisable value of the non current assets held for sale, support from the Government of
India and other business plans, the Company has prepared the financial statements on the basis of going
concern and that no adjustments are considered necessary to the carrying value of assets and liabilities.
46 A charge by ID 80046855 is still open in the Index of charge on the Website of Ministry of Corporate
Affairs pertains to State Bank of India. The Company has already discharged the debt of State Bank of
India long back. Since the issue is almost twenty five years old, efforts will be made in co-ordination with
State Bank of India for obtaining the necessary documents for satisfaction of charge .
47 The Investment in Gujrat State Machine Tools Corporation being an Associate Company, has been fully
provided in books of Accounts as the Net Worth of the Company is completely eroded based on the
latest information available with HMT Limited. Hence the fair value is shown as Nil.
48 The Company has accounted Bad Debts under other expenses, amounting to Rs.1544.11 lakhs being the
unrealisable Interest income for the year on the Loans given to HMT Machine Tools Ltd, pursuant to
Board of Directors approval.
49 The Company has invested Rs.15 lakhs (50% of Equity Shares) comprising 1,50,000 equity shares of
Rs.10/- each fully paid up in Sudmo HMT Process Engineers (India) Ltd, Bangalore (M/s Submo-HMT).
M/s Sudmo-HMT has no operations. The Board of HMT Ltd has approved (Februaruy 2020/July 2021)
for closure of the defunct Jaint Venture Company and submitted closure proposal to the Administrative
Ministry on July 2021 for approval. Awaiting furhter commu0nication from the Ministry.

148
 Annual Report 2023 - 24

NOTES FORMING PART OF STANDALONE FINANCIAL STATEMENTS

50 The Company has invested Rs.20.84 lakhs (39% of Equity Shares) comprising 20,84,050 equity shares of
Rs.1/- each fully paid up in Gujarat State Machine Tools Corporation, Bhavanagar (M/s. GSMTC). The Board
of HMT Ltd gave (March 2021) in principle approval for liquidation of M/s GSMTC. and issued a consent
letter to Gujarat Industrial Investment Corporation Ltd (GIIC). GIIC approved (Sept. 2021) liquidation of
M/s GSMTC and submitted (October 2021) the proposal to Industries and Mines Department, Govt. of
Gujarat. HMT Limited submitted (April 2022) the liquidation proposal to the Administrative Ministry for
approval. Awaiting further communication from the Ministry.
51 The Company has invested 30,00,000 equity shares of 1 Naira each fully paid up in Nigeria Machine Tools
Ltd, Nigeria (M/s NMTL.) The Board of HMT Ltd approved (February 2020July 2021) for disinvestment
of stake in M/s NMTL and sought approval from Administrative Ministry. Awaiting furhter communication
from the Ministry.
52 The Company has no transactions with struck off Companies under section 248 of the Companies Act,
2013.
53 The ammendments in Indian Accounting Standards which are applicable to the Company are not expected
to have any significant impact on the Company's Financial Statements
54 Balances under Trade Receivables, Loans & Advances, Trade payables and Other Current Liabilities are
subject to confirmation , although confirmation has been sought in most of the cases.
55 The company has not advanced or loaned or invested any funds (either from borrowed funds or share
premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
56 The company has not received any funds from any person(s) or entity(ies), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.
57 The figures of previous year have been regrouped/reclassified, wherever necessary, to conform to the
current year's classification.

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 Annual Report 2023 - 24

CONSOLIDATED
FINANCIAL
STATEMENTS

150
 Annual Report 2023 - 24

REVISED INDEPENDENT AUDITORS’ REPORT

(Issued consequent to provisional comments by Director, Indian Audit and Accounts
Department, office of the Director General of Commercial Audit, Hyderabad vide DGCA/
A/C/Desk/2023-24/HMT/1.19/516 dated 18-09-2024, and revision of Independent
Auditors report of HMT Machine Tools Limited, the subsidiary company, by its
Statutory Auditor dated 20-09-2024. This supersedes our Independent Audit report
dated 09-08-2024)
To the Members of HMT Limited (d) Consolidated Cash flow statement of the flow of
Report on the Audit of the Consolidated cash in the group for year ended on that date.
Financial Statements Basis for Qualified Opinion
Qualified Opinion I. HMT Limited
We have audited the consolidated financial 1. Food Processing Machinery Unit,
statements of HMT Limited (hereinafter referred to Aurangabad
as the “the Holding Company”), its subsidiaries, its
associate and joint ventures (Holding Company and (a) As per information and explanation given
its subsidiaries together referred to as “the Group”) to us with regard to Inventory valuation
which comprise the Balance Sheet as at 31st March as stated in Note No. 2 (ii) (j) stock of
2024, and the Statement of Profit and Loss (including raw material, it is valued by adopting
Other Comprehensive Income) for the year then Weighted Average Cost method. However,
ended 31 March 2024, the Statement of Changes in in the inventory statement provided for
Equity and the Statement of Cash Flows for the year verification purpose, the correctness of
ended on that date and notes to the Consolidated stock items rates and therefore, cost could
financial statements, including a summary of not be verified due to absence of sufficient
significant accounting policies and other explanatory and appropriate audit evidence. Owing to
information. the nature of Company’s records and in the
absence of sufficient audit evidence, we
In our opinion and to the best of our information and are unable to ascertain if there is material
according to the explanations given to us, except for departure from the Weighted Average Cost
the basis of Qualified Opinion section of our report, Method adopted by the company. We are
the aforesaid consolidated financial statements give also unable to ascertain its consequent
the information required by the Act in the manner so impact, if any, on the Standalone Ind AS
required and give a true and fair view in conformity financial statements.
with the accounting principles generally accepted in
India, in the case of (b) The revenue as per the Statement of profit
and loss for the year ended March 2024 is
(a) Consolidated Balance Sheet, of the state of Rs 3604.75 lakhs. This includes a sum of Rs
affairs of the group as at 31st March, 2024 and 105.88 lakhs being the value of sales invoices
(b) Statement of Profit and Loss (including Other accounted in the month of March 2024
Comprehensive Income), of the profit for the (F.Y 2023-24), raised by HMT Limited food
year ended on that date. processing machinery unit Aurangabad, on
its customers. However as per the records,
(c) Consolidated Statement of Changes in Equity, the said invoices were raised during the
the changes for the year ended on that date. period, but dispatches were made after

151
 Annual Report 2023 - 24

31-3-2024. The customer therefore has income partly from building (owned by the
not got control of the assets before 31- entity) which is not classified as Investment
3-24. This is in contravention of revenue property in the standalone financial
recognition as per Ind As 115, resulting in statements.
the overstatement of revenue by Rs 105.88
lakhs, with consequent overstatement (c) Ind AS 40 requires the Company to obtain
of profit and understatement of finished a fair valuation report of the investment
goods. properties from a registered valuer as
defined under Rule 2 of Companies
2. Auxiliary Business Division, Bengaluru (Registered Valuers and Valuation) Rules,
2017. However, we observe that the
(a) Non-receipt of balance Confirmations with Company has not complied with the above
regard to Trade Receivables, Trade Payables, requirement as prescribed by Ind AS-40.
Other Current Assets and Other Current
liabilities and hence, impact of the same on (d) Ind-AS 109 requires an entity to apply
the standalone financial statements cannot expected credit loss (ECL) model for
be quantified. measurement and recognition of impairment
loss. However, as per the information and
(b) The Company records rental income explanation given to us no ECL matrix was
generated from the buildings situated on the prepared for the period under audit for
land which is not recorded in the books of creating provision for loss allowance. Hence,
accounts of the Company. On examination we are unable to ascertain its impact, if
of records produced for verification, the any, on the Standalone Ind AS financial
status of the land and it’s ownership is in the statements.
name of HMT Limited.
(e) As per Ind AS-109, the Company has to
(c) Ind AS 40 requires the Company to obtain recognize loss allowance for expected credit
a fair valuation report of the investment losses on a financial asset. In the instant
properties from a registered valuer as case, we observe that the Company has
defined under Rule 2 of Companies long outstanding receivable from HMT
(Registered Valuers and Valuation) Rules, Machine Tools Limited in respect of which
2017. However, we observe that the the Company has not recorded any expected
Company has not complied with the above credit losses. In our opinion as HMT Machine
requirement as prescribed by Ind AS-40. Tools Ltd is incurring continuous losses and
has a negative net worth, the ability of the
3. Corporate Head Office and Company as a whole
Company to recover the amount receivable
(a) Non - receipt of balance Confirmations with from HMT Machine Tools Limited remains
regard to Trade Receivables, Trade Payables, doubtful.
Other Current Assets and Other Current
(f) As per Schedule III of Companies Act,
liabilities and hence, impact of the same on
2013, trade payables include all amounts
the standalone financial statements cannot
due on account of purchase of goods and
be quantified.
services received in the normal course of
(b) IND AS 40 defines Investment Property business. In the instant case, we observe
as property held to earn rentals or for that an amount of Rs 1510.99 lacs which
capital appreciation or both. It is observed is presently disclosed as Accrued expenses
that Corporate Head Office derives rental under the head Other Current Liabilities

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must be disclosed under Trade Payables. of reconciliation of party balances is

Further, the Company must provide ageing incomplete. Further it is observed that
analysis for the amount disclosed under the balance in certain accounts having no
head Accrued Expenses. transactions for more than five years have
been carried forward. Due to non-availability
(g) We draw your attention to Note No.53 of confirmations of balance from parties,
wherein the Company has stated that it has we are unable to express an opinion on the
no transactions with struck off companies correctness of the balances stated and their
under section 248 of The Companies Act, impact on the financial statements.
2013. However, Company has not provided
appropriate audit evidence to establish that (d) As informed to us, the Unit owns total land
they do not have such ransactions. of 330.28 acres in Bangalore Complex, which
were partly gifted and partly acquired over
II. HMT Machine Tools Limited (“MTL”) the years. The said land is used for factory
1. MBX, Bangalore buildings, offices, residential quarters,
hospital, cinema, stadium, commercial
(a) Ind AS 2 – according to the details and complex, internal roads etc. In addition,
information provided to us, the value of there exists vast area of open spaces.
Raw Materials, Work- in- progress and Stock As, the title deeds of the land, physical
in Trade (Finished Goods) are taken on the verification, survey and demarcation of land
basis of job cards issued for the particular is not provided, we are unable to comment
work order and stock taking is on Weighted on the ownership, accuracy of the area of
Average basis, however, due to non- land usage and encroachment if any.
availability of valuation report and detailed
working of Inventories , we are unable to (e) Other Income - Rs 780.99 lakh - Recoveries
comment on the compliance with Ind AS from Staff/ Others Rent received – Others
2 and the impact on financials due to this. Rs 528.24 lakh This includes Rs 254.24
Also, the physical verification of stock has lakh, which was erroneously accounted for
not been done at regular intervals. the year 2023-24 as part of other income,
instead of accounting under Liabilities as
(b) No provision has been made in these on 31st March 2024. HMT MT Ltd received
Accounts for interest / penalty / damages Rs.300 lakh (excluding GST and Income Tax
for the delayed remittance of provident TDS) during July 2023 to October 2023 as
fund dues to the appropriate authorities non-refundable facilitation fees towards
as at March 31, 2024, and the same is non Robotic and Autonomous System (RAS)
quantifiable. Further, no provision has received from ARTPARK (I-Hub for Robotics
been made for penalty/damages, if any and Autonomous Systems Innovation
payable on non-settlement / non-payment Foundation) for a period of 4 years and 11
of gratuity dues as at March 31, 2024. We months (from the agreement date) as part
are unable to express an opinion on the of the Collaboration Agreement executed
impact of this non-provision on the financial on 4th July 2023 between HMTMT Ltd and
statements. ARTPARK for leasing (operating lease) the
(c) In the absence of confirmation from parties premises (5 acre land) of HMT Ltd located
regarding Trade payables, Trade receivables, in MBX unit. Thus, the amount of Rs. 300
Advances received, Advances paid, Deposits lakh was received for a period of 59 months
(including security deposit), the process (4 years and 11 months) and an amount

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 Annual Report 2023 - 24

of Rs 45.72 lakh (Rs 300 lakh/59 months = for Provident Fund dues as at 31st March
Rs 5.08 lakh per month X 9 months from 2024. Consequent effect of the same on
July 2023 to March 2024 = Rs 45.72 lakh) the financial statements for the years is
only should have been included as part of not ascertainable. Accordingly, provident
Other Income for the year 2023-24. This has fund set up by employer which require
resulted in the overstatement of Income interest shortfall to be met by the employer
and understatement of Loss for the year would be in effect defined benefit plan in
2023-24 by Rs 254.24 lakh. accordance with Ind AS-19. Hence this is not
in compliance with the Ind AS-19 “Employee
(f) Statement of Profit and Loss for the year Benefits”
ended 31st March 2024 - Revenue from
operations Rs 1,668.02 lakh. This includes (c) Non - receipt of balance Confirmations with
Rs 334.89 lakh, being the value of Sales regard to Trade Receivables, Trade Payables,
invoices accounted in the month of March Other Current Assets and Other Current
2024 (F.Y. 2023-24) raised by HMT MT MBX liabilities and hence, impact of the same on
unit, Bengaluru on its customers. However, the standalone financial statements cannot
as per the records, e-way bills for the said be quantified.
invoices were issued during the period April
2024 to June 2024 (F.Y. 2024-25). As per (d) HMT Machine Tools Limited, Pinjore Unit
the requirements of IND AS 115 – Revenue recognized revenue of Rs. 1.54 crore in respect
from Operations, even though the invoiced of goods which were delivered at customers’
products were dispatched against the premises in 08.04.2024 and 12.04.2024.
e-way bills during the period April 2024 to Accounting of Rs. 1.54 crore as sales without
June 2024 (F.Y. 2024-25) by MBX unit, the reaching the customers destination has
sales were erroneously accounted in the resulted in overstatement of revenue from
month of March 2024 (F.Y. 2023-24) itself operations and understatement of loss by
instead of F.Y. 2024-25. This has resulted Rs. 1.54 crore. This accounting treatment
in the overstatement of Income and is in contravention to IND AS 115 and the
understatement of Loss for the year 2023- Company’s own accounting policy.
24 by Rs.334.89 lakhs 3. MTK, Kalamassery
2. MTP Pinjore (a) As per the Accounting policies of HMT
(a) The unit has created provision for the Machine Tools Limited, Kalamassery (MTK),
Customs refund claims amounting to Rs.8.78 revenue in respect of sale of goods will be
lakhs and Claim recoverable (Foreign) recognized at the point in time that the
amounting to Rs.1.55 lakhs but there is no customer obtains control of the goods or
certainty of recovering the same and had to services which is when it has taken title to
be written off. the products assumed the risks and rewards
of ownership of the product or services. As
(b) As per Ind AS-19, defined benefit plan is per the shipping terms there are certain
termed as any plan in which the enterprise FOR (customer premises) contracts at the
has obligation to provide the agreed year end. Though the invoices in respect
benefits to current and former employees of the eight contracts were raised on or
and the actuarial risk and investment before 31 March 2024, the risk and reward
risk fall. Therefore, the unit has not of ownership was not transferred before 31
determined the actuarial valuation liability March 2024 as the machines were received

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at customers site after 31 March 2024. As per the copies of records furnished to us,
Recognition of sales revenue on invoice 781 Acres 26 Cents 266 sq links property was
basis in FOR (customer premises) contracts assigned to HMT Limited by Govt. of Kerala
without actual delivery at customer in 1973. Out of this 432 Acres 19 Cents and
premises has resulted in overstatement of 126 sq Links were surrendered/ gifted/
Sales by Rs.1,33,68,730/-. given for various purposes. Balance land in
hand is 349 Acres 40 Cents and 140 Sq links.
(b) Notes No.10 Other Assets include Rs. All this land is in the name of HMT Limited
1,59,61,090/- being ADHOC-ADVANCE and not in the name of HMT Machine Tools
(APRIL 2019)-PS and Rs. 1,31,34,286/- limited.
being ADHOC-ADVANCE (APRIL 2019)-WG
disclosed under Advance to Suppliers/ (d) Margin money deposits amounting to Rs.
Employees Including Advance No. III – 84,97,769/- has been classified as other bank
considered good. This is monthly ad hoc balances. Out of the total margin money
payment to the employees of HMT Machine deposit, amount of Rs. 24,64,346.00/-are
tools Ltd vide office order NO021(M)/19 subject to confirmation and reconciliation,
dated 30th September 2019.The payment the consequent effect on the financial
was made pursuant to approval of statement is unascertainable.
Administrative Ministry vide letter No
(e) The Unit has provided interest on MSME
1-0501/3/2019+P.E.X(E198595) dated 19th
on a simple interest basis on the annual
September 2019,where the employees of
outstanding balance. Also, in the case of
HMT Machine tools Limited has been paid an
some agreements, even if the terms of
additional monthly ad hoc amount equal to
conditions specify payment within 30 days,
10% of the running Basic Pay plus dearness
the unit has taken 45 days as the minimum
allowance of the month, with effect from
1st April 2019 (HMT Machine tools Limited days for calculation of MSME interest.
made profits during 2018-19 ). The ad hoc 4. MTH, Hyderabad
payment attracts Income Tax. Further the
ad hoc payment made was not adjusted (a) Division has disclosed the amount of
while settling retired employees. We are Rs.23.71 crores under contingent liability
of the opinion that this is in the nature of instead of creating a liability under
expenditure and should be charged to the ‘Expenses’ head as the amount is related to
Statement of Profit and loss account, as property tax payable to Greater Hyderabad
this is an employee benefit payment for Municipal Corporation (GHMC) on Factory
which Income tax is applicable. Had it been and Township and it is a clear liability.
an advance, it should have been deducted
However, the division has not disclosed
while settling retired employees. Hence,
current year arrears of Rs.8.26 crores under
Other Assets are overstated to this extent.
contingent liabilities also. The total liability
(Note: Necessary rectification entry has
of Rs.32.63 crores (including up to previous
been passed in Machine Tools Directorate
years) has not recognised in Division’s
Books.)
Profit & Loss of account that resulted in
(c) Land shown in Note No.3A Property, underestimation of loss for Rs.32.63 crores.
Plant and Equipment and in Note No. 3B
(b) Division has not provided for the clear
Investment Property comprises of 349 Acres
liability of Rs.12.31 crore under “Expenses”
as per the statement furnished by the unit.
head relating to water and sewerage charges

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 Annual Report 2023 - 24

bill raised by Hyderabad Metropolitan Turnover of MTH, Hyderabad to Total Turnover of

Water Supply & Sewerage Board (HMWSSB) HMT Machine tools Limited is 23.19%. Assets of MTH,
for supply of water, instead shown Hyderabad to Total Assets of HMT Machine tools
Rs.1,24,59,308/- crore under contingent Limited is 25.22%
liability.
The branch auditor has summarised the basis for
(c) The division has made an excess provision disclaimer based on the following observations-
of Rs.1.41 crores on account of Non- moving
Raw material, Stores and Spares and Tools (a) Property, Plant, and Equipment: According to
up to year ended 31st March 2023 which the information available to us, the Division has
is continuing in books for the financial immovable property transferred to it on lease
year ended 31 March, 2024. This has led from the Government of India, but it is not in
to understatement of Inventories in the compliance with IND AS 116 as the lease deeds
were not provided. With reference to Note 3A
financial statements.
of the financial statements, the Division charges
5. MTA, Ajmer 100% of its cost to depreciation over the useful
life of the asset with a residual value of Rs. 1.
(a) Non - receipt of balance Confirmations with Upon examining the asset register, we noticed
regard to Trade Receivables, Trade Payables, that the dates of purchase of the assets were
Other Current Assets and Other Current not available, which raises doubts about the
liabilities and hence, impact of the same on remaining useful life of these assets. However,
the standalone financial statements cannot division following this as per instructions given
be quantified. by head office
(b) The company has not provided for interest (b) Capital Work in Progress: We draw an attention
for delay in payment to MSME’s as per to Note 3B of the financial statements which
Micro, small, and Medium Enterprises discloses capital work in progress (CWIP) of
Development Act, 2006 which in turn Rs.1,10,00,000. During the course of audit,
results in understatement of expenses and no details in respect of CWIP provided. In the
liabilities in the financial statements. absence of the details of the same, we are unable
6. PTH, Praga Tools Hyderabad and MTD, Bengaluru to form an opinion on the existence, completions
and valuation of the Capital Work in Progress.
(a) Non - receipt of balance Confirmations with
regard to Trade Receivables, Trade Payables, (c) Inventory Valuation: We draw attention to
Other Current Assets and Other Current Notes 5 and 25 of the financial statements. The
liabilities and hence, impact of the same on division disclosed its inventory at Note No.5
the standalone financial statements cannot Rs.37,12,74,054 for the year ending 31.03.2024
be quantified. (Pr.Year: 39,05,51,467) for which we were
unable to obtain sufficient and appropriate audit
Basis for Disclaimer Opinion evidence regarding the existence, title, and value
The Auditor of MTH, Hyderabad, a branch of HMT of the inventory as on that date. Further, during
Machine Tools Limited has expressed Disclaimer the year under consideration, a provision against
Opinion regarding the financial statements of the non-moving inventories made of Rs.1,19,86,909
division on the basis that the auditor was not been and charged to the profit & loss account
able to obtain sufficient and appropriate audit under “Other Expenses - Note No.25” which
evidence to provide a basis for an audit opinion on carrying the total provision made for the year
these financial statements. ending 31.03.2024 is of Rs.4,82,89,601 (Pr.Year

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3,63,02,692) disclosed under Note No.5. There is The division fails to maintain the details of the
no base is provided except the system generated suppliers & employees to whom the advances
report, due to which we are unable to form an given which is the primary responsibility of
opinion on the correctness of the provision made the division in maintenance of the accounting
against the non-moving inventories. records. In the absence of the same we are unable
to form an opinion on the same. Additionally, the
(d) Trade Receivables: We draw attention to Note
division provided a provision for ‘impairment
6 of the financial statements, which discloses
of doubtful advances’ against these suppliers
trade receivables amounting to Rs.35,51,88,038
and employees advances which amounting
(Pr.year Rs.32,80,05,797). Customer-wise
to Rs.2,08,15,692 (Pr.year Rs.2,08,15,692).
balance confirmations were not provided for
The division fails to justify the provision made
the year ended March 31, 2024. In the absence
against the supplier and employees advances.
of confirmation letters from customers, we are
Consequently, we are unable to comment on the
unable to confirm and satisfy ourselves regarding
same.
trade receivables. Additionally, customer-wise
and transaction-wise ageing of trade receivables (g) Borrowings & Other financial liabilities: We draw
was not produced for audit. Consequently, we are attention to Note 13.B and Note 15 of the financial
unable to confirm the ageing of trade receivables statements, which discloses that the Division
as disclosed in Note 6A. availed a term loans from the Government
of India amounting to Rs. 90,73,05,000 (PY
(e) Allowance for Credit Loss: We draw attention to
Rs.90,73,05,000) with interest accrued and
Notes 6, 6A and 25 of the financial statements
due disclosed in the Note No.15 amounting
in respect of allowance for expected credit loss
to Rs.130,98,82,874 (PY. Rs.1,15,98,29,947)
against the Trade Receivables. During the year
respectively. Additional information regarding
ending 31.03.2024 an amount of Rs. 69,68,182
the security and terms of repayment was not
(PY.Rs.1,74,34,928) is charged to the profit & loss
provided or disclosed in the financial statements.
account on account of ‘allowance for expected
Due to non-disclosure of required information
credit loss’ under Note No.25 “Other Expenses”.
which is a violation of Schedule III. Further, we
The total amount (provision) of ‘allowance for
are unable to form an opinion on the current and
expected credit loss’ is carrying at Note No.6
non-current portions of the liability disclosed
is Rs.22,79,77,008 (Pr.year Rs.22,10,08,826).
under Other Financial Liabilities. Additionally,
The division fails to justify the provision made
we are unable to conclude the position of
for ‘expected credit loss’ against the Trade
these loans as no third-party confirmation was
Receivables and for the carrying amount as at
provided for the audit except a letter from head
the year end. Therefore, we are unable to form
office showing interest and principle amount
an opinion on whether the provision made
outstanding.
during the year for ‘expected credit loss’ and
the carrying amount for ‘expected credit loss’ is (h) Trade payables: We draw attention to Note 14
sufficient of the financial statements, which discloses
the amounts due to vendors amounting to
(f) Other Current Assets: We draw attention to
Rs.24,50,18,324 (Pr.Year Rs.21,17,65,745). In the
Note 9- “Other Current assets” of the financial
absence of confirmation letters from vendors,
statements, the division disclosed the advances
we are unable to confirm and satisfy ourselves
given to the suppliers and employees which
regarding trade payables. Further, the following
amounting to Rs.6,97,85,415 (PY Rs.7,37,82,623).
amounts included in the ‘Trade payable

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under Note No.14’ that have remained static (k) Other Liabilities: We further also draw an
/ continuing compared to the previous year attention to the same Note 16 of the financial
without justification: statements, ‘Other liabilities’ includes following
liabilities:
• Liability of OSL Expense: Rs.5,96,88,819
• Hyderabad Metro Water: Rs.8,18,37,775 • Miscellaneous Recoveries : Rs. 1,20,89,855
• Liability for SCR Expense: Rs.79,70,164 • Advance Received Against Rent : Rs.
25,93,974
In the absence of which we are unable to form
an opinion the same. • SCR Expenses : Rs. 52,69,152

With reference to the amount disclosed in The division has not been provided the details of
Note No.14A of the financial statements which the parties to whom these amounts are payable
Discloses of ‘amounts due to Micro enterprises / due and the confirmation letters from the
and small enterprises’ of the division as per respective parties. Consequently, we are unable
MSMED Act,2006. Division has not been to form an opinion on these amounts.
provided the recognition criteria for MSME (l) Other expenses: With reference to Note 25
vendors for the purpose of our audit, which rise of the financial statements - ‘Other expenses’
doubt on the correctness of the disclosure given which includes PF Trust Loss Rs.1,25,00,000 (Pr.
in financial statements. Additionally, vendor- year Rs.1,25,00,000). For the same, the division
wise and transaction-wise ageing of trade explained that the Division had opted to pay
payables is not provided to confirm the ageing Provident Fund to its Trust but has defaulted
of trade payables as disclosed in Note 14B. in payment of contribution to the PF trust.
(i) Revenue received in advance: We draw Consequently, the Division has shared a loss of
attention to Note 16 of the financial statements Rs. 1,25,00,000/- by the PF Trust due to this
under ‘Other current liabilities’ which includes default. This amount is carried to the Balance
‘revenue received in advance’ amounting to sheet under Statutory dues and disclosed in
Rs. 10,45,70,143 (Pr.Year Rs.10,33,72,324). The ‘Other Current liabilities’ at Note No.16. The
division fails to provide the details of the amounts division has not been provided any basis for
received from the respective customers, and said amounts. Consequently, we are unable to
their confirmation letters. In the absence of the form an opinion on the amounts charged to the
same, we are unable to form an opinion on the Statement of Profit and Loss and carrying to the
same. balance sheet under liabilities.
(j) Statutory dues: We also draw attention to the (m) Contingent liabilities: We draw attention to
same Note No. 16 of the financial statements Note 26 of the financial statements, which
under ‘Other liabilities’ which includes ‘statutory discloses contingent liabilities related to pending
dues’ amounting to Rs.69,96,09,510 (Pr. Year. litigations and various cases against the Division.
Rs.67,36,07,948); “With holding of Taxes and We are unable to assess the reliability of these
Other Tax Payables” amount to Rs.2,37,35,260 disclosures in the financial statements, nor can
(Pr.Year. Rs.3,69,97,253). Significant portion of verify the status of the litigations and cases
these amounts are due from earlier years. The presented. Consequently, we are unable to
division has not been provided the timelines for measure the impact of these contingent liabilities
the amounts due to various statutory authorities, on the financial statements, as the current status
and any assessment orders for the said dues. of many cases could not be tracked due to
Consequently, we are unable to form an opinion insufficient information.
on these amounts.

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 Annual Report 2023 - 24

We conducted our audit in accordance with in our audit of the standalone financial statements
the Standards on Auditing (SA’s) specified for the financial year ended 31st March 2024. These
under section 143(10) of the Companies matters were addressed in the context of our audit of
Act, 2013. Our responsibilities under those the standalone financial statements, and in forming
Standards are further described in the Auditor’s our opinion thereon, and we do not provide a separate
Responsibilities for the Audit of the Consolidated opinion thereon, and we do not provide a separate
Financial Statements section of our report. We opinion on these matters. For each matter below, our
are independent of the Company in accordance description of how our audit addressed the matter is
with the Code of Ethics issued by the Institute provided in that context.
of Chartered Accountants of India together with
the ethical requirements that are relevant to our We have determined the matters described below
audit of the Consolidated financial statements to be the key audit matters to be communicated in
under the provisions of the Companies Act, 2013 our report. We have fulfilled the responsibilities
and the Rules thereunder, and we have fulfilled described in the Auditor’s responsibilities for the
our other ethical responsibilities in accordance audit of the standalone financial statements section
with these requirements and the Code of Ethics. of our report, including in relation to these matters.
We believe that the audit evidence we have Accordingly, our audit included the performance of
obtained is sufficient and appropriate to provide procedures designed to respond to our assessment of
a basis for our opinion. the risks of material misstatement of the standalone
financial statements. The results of our audit
Key Audit Matters procedures, including the procedures performed
Key Audit Matters are those matters that, in our to address the matters below, provide the basis for
professional judgement, were of most significance our audit opinion on the accompanying standalone
financial statements.

Key Audit Matters How our audit addressed the key matter

1. HMT Limited
Revenue Recognition from Operating Leases as per IND AS 116 - Leases
The company earns rental income from leasing out Our Audit Procedures include the following –
properties on a commercial and residential basis.
 We have obtained the information such as
As the rental income earned forms a significant part Number of residential quarters and shops,
of the total income earned, the matter is considered occupancy, Tenant name, Date of occupancy and
as key audit matter. vacancy.
 We have verified lease agreements on sample
basis
 We have verified journal entries passed with
the rental income to be recognized as per lease
agreements.
 We have verified the impact of Ind AS 116 on the
rent received by the entity.

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Revenue recognized from Sale of watches

The entity is engaged in sale of watches and earns a Our Audit Procedures include the following –
major part of revenue.
 We have obtained an understanding of how the
And hence, considered this as a key audit matter. invoicing for the sales made at the showrooms
and sales made through e-Commerce website is
done.
 We were provided with the transaction log in the
e-commerce website against which the invoices
are generated.
 We have obtained an understanding based on
recording the income from sale of watches in the
books of accounts.
 The sale of watches recorded in books was
selected on sample basis and verified against the
invoices generated.
 We have checked the sequential order for the
invoices generated against the sales made.
 We have obtained an explanation in respect to
the cancelled invoices.
Loan given to HMT Machine Tools Limited
The entity had given loan to it’s wholly owned Our Audit Procedures include the following –
subsidiary HMT Machine Tools Limited having a  We have obtained the Minutes of Meeting of
balance of Rs. 30,582.41 lakhs. Board Committee and Board resolutions in
The amount given as loan to this entity forms a major respect to the approval of loan given to HMT
part of Current Assets and hence, considered as a key Machine Tools Ltd.
audit matter.  We have verified the rate of interest at which the
loan was given.
 We have verified the sources of funds for the
loan given.
 We have verified the reasons for which the loans
were given.
 We have verified the impact of Section 185 and
Section 186 of Companies Act, 2013 on such loan
given.
 We were provided with the interest workings
in respect of interest income recorded on such
loan.

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Inventory valuation
Inventory is considered as a key audit matter as the Our Audit Procedures include –
valuation and determination of its impairment require
usage of several key assumptions and estimates  We have obtained the Inventory Valuation
that may have a material impact on the Standalone reports from the management.
Financial Statements.  We have obtained the Quantitative details in
respect of type of Inventory held by the entity.
 We have obtained an understanding on the
accounting policy followed by the entity to
measure the Inventory on the closing date.
 We have analyzed and verified the disclosure
requirements as per Ind AS -2 and Schedule III of
Companies Act, 2013.

Emphasis of Matter Paragraph GSMTC and issued the consent letter to

1. HMT Limited Gujarat Industrial Investment Corporation
Limited (GIIC), GIIC approved (September
(a) We draw you attention to Note No. 49 of 2021) liquidation of M/s. GSMTC and
Standalone Ind AS financial statements for submitted (October 2021) the proposal
the financial year ended 31st March, 2024 to Industries & Mines Department. HMT
wherein HMT Limited has invested Rs.15 Ltd submitted (April 2022) the liquidation
lakh (50% of equity shares) comprising proposal to Administrative Ministry.
1,50,000 equity shares of Rs.10 each fully (c) We draw you attention to Note No. 51 of
paid up in Sudmo HMT Process Engineers Standalone Ind AS financial statements for
(India) Ltd., Bengaluru (M/s. Sudmo - HMT). the financial year ended 31st March, 2024
M/s. Sudmo-HMT has no operations. The wherein HMT Limited has invested 30,00,000
Board of HMT Ltd has approved (February equity shares of 1 Naira each fully paid up
2020/ July 2021) for closure of the defunct in Nigeria Machine Tools Limited, Nigeria
joint venture company (M/s. Sudmo- HMT) (M/s. NMTL). The Board of HMT Ltd gave
and submitted the closure proposal to (February 2020) approval for divestment
Administrative Ministry (July 2021) for of stake in M/s. NMTL and sought approval
approval. from Administrative Ministry.
(b) We draw you attention to Note No. 50 of (d) We draw your attention to Note No. 3C-
Standalone Ind AS financial statements for Additional Information (d)&(e), Note
the financial year ended 31st March, 2024 No. 22- Additional Information and Note
wherein HMT Limited has invested Rs.20.84 No. 34 (ii) of Standalone Ind AS financial
lakh (39% of equity shares) comprising statements for the financial year ended 31st
20,84,050 equity shares of Rs.1 each fully March, 2024 relating to transfer of land to
paid up in Gujarat State Machine Tools Raman Research Institute and Government
Corporation Ltd., Bhavanagar (M/s. GSMTC). of Uttarakhand (transferee) wherein the
The Board of HMT Ltd gave (March 2021) in Company (transferor) has received entire
principle approved for liquidation of M/s. sale consideration and has given the

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possession of the land in the earlier years 3. HMT Watches Limited

resulting in performance of contract by
both the parties. The Company had made (a) Note No. 2.8(a)
a provision for taxation of Rs. 980 lakhs We draw attention to the Note No.2.8(a)
which has been reversed in the current year. of the “Notes to the financial statements”
However, the recognition of profit/ loss on regarding the closure of HMTWL due to
transfer of land will be considered in the discontinued manufacturing operations in
year of registration of sale deed. the year 2016-2017 and line of approval
Our opinion on the above matters is not modified. of the Government of India, all the
moveable assets being disposed-off to
2. HMT Machine Tools Limited (“MTL”) meet the closure liabilities. By MHI vide
(a) MBX, Bangalore letter dated 05-05-2022, MHI directed to
transfer all immovable assets from books
i. As informed to us, a portion of the land used of HMTWL(under closure) to the books of
for the Roads measuring approximately HMT Ltd, the Holding Company at book
4.25 acres has been acquired by Bruhat value. The rights of transfer of immovable
Bangalore Mahanagara Palike (BBMP). assets have been granted an aid of
As per the Direction of the Court land Rs.837.47 crores towards meeting Income
compensation of Rs.18.93 Crores has been tax liability on account of writing off of GOI
fixed, valuing the land @1.65 times the Loan amounting to Rs.2,69,378.75/- lakhs
guidance value of land of Rs. 2.70 Crores per in the books of HMTWL to enable filing
acre fixed by the Government of Karnataka. closure application of HMTWL u/s 248 of
As at March 31, 2024, BBMP has paid adhoc the Companies Act,2017.
compensation deposit of Rs. 18.50 Crores
pending joint measurement and issue of (b) Note No.2.22
correct dimension report, this is reflecting We draw attention to the Note No.2.22 of the
as advance received in the books under “Notes to financial statements” regarding
Note-18. Since the land is not transferred to the write off of Government of India Loan
BBMP following legal procedures, the said amounting to Rs.2,69,278.75/- lakhs. The
land measuring 4.25 acres is continued to said amount was due to Government
be shown as Property, Plant and Equipment of India and as per the communication
even though BBMP has taken over physical received from Ministry of Heavy Industries
possession of the Land. and Public Enterprises vide letters dated 13-
(b) MTA Ajmer 01-2017, 08-05-2023 and 06-02-2024, the
company has written off the GOI Loans to
i. Due to pending finalization of rates by amounting to Rs.2,69,278.75 lakhs.
the Government of Rajasthan, provision
of conversion charges, if any, payable for (c) Note No.2.29
conversion of Revenue land for industrial We draw attention to Note No.2.29 of the
use at Machine Tool Unit Ajmer, has not “Notes to financial statements” regarding
been made in the accounts as the matter preparation of financial statements on
is sub-judice and execution of lease deed is liquidation basis. The management of
pending. the company intends to close down the

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 Annual Report 2023 - 24

company as the company has suffered huge Act, in so far as it relates to the aforesaid
losses and its net worth has been eroded. subsidiaries and Joint venture company,
The stakeholders, in view of losses, have is based solely on the report of the other
decided to close the company and apply auditors. Our opinion on the Consolidated
for voluntary winding up of the company. Ind AS financial statements, and our report
In the view of the same, the accounts of on other legal and regulatory requirements
the company are not prepared on Going below, is not modified in respect of this
Concern basis. matter with respect to our reliance on the
work done and the report of the other
Other Matters
auditors.
1. Group as a Whole (c) The holding company has not received
(a) The previous year figures in the financial financial statements of Gujarat Machine
statements of the company were audited Tools Limited for the year ended March
by SSB & Associates whose report has 31, 2024, an associate and the same has
been furnished to us in which the auditor not been considered for the purpose of
have provided a qualified opinion on the preparation of these Consolidated Ind AS
Consolidated Financial Statements as on 31- financial statements.
03-2024. The Qualified opinion given by the (d) Audited financial statements of Sudmo
previous auditor is given as “Annexure A”. HMT Process Engineers (India) Limited, a
(b) We did not audit the financial statements joint venture for the year ended March 31,
of the three subsidiaries whose financial 2024 in which share of loss of the Group
was Rs.0.57 lakhs has been considered for
statements reflect total assets at March 31,
preparation of these Consolidated Ind AS
2024 and total revenues (including revenue
financial statements.
from discontinued operations) for the year
ended on that date are as follows: (e) The holding company has not received
financial statements of Nigeria Machine
Name of the Total Assets (Rs.) Total Revenue Tools Limited for the year ended March
Subsidiary (in lakhs) (Rs.) (in lakhs) 31, 2024, an associate and the same has
HMT Machine Tools 31,338.53 13,131.83 not been considered for the purpose of
Limited
preparation of these Consolidated Ind AS
HMT (International) 5,862.44 1,969.86
financial statements.
Limited
HMT Watches - 61.21 2. HMT Limited
Limited
(a) The physical share certificates of
as considered in the Consolidated Ind 26,08,99,037 equity shares and 4,43,00,000
AS financial statements. The financial preference shares of HMT Machine Tools
statements of these subsidiaries are audited Limited whose cost is Rs.26,089.90 lakhs
by other auditors whose report have been and Rs.44,300.00 lakhs respectively are not
furnished to us by the Holding Company in possession of the Company as at 31st
and our opinion on the Consolidated Ind AS March 2024.
financial statements, in so far as it relates
to the amounts and disclosures included Information Other than the Financial
in respect of these subsidiaries and joint Statements and Auditor’s Report Thereon
venture company and our report in terms of The Company’s Board of Directors is responsible
subsections (3) and (11) of Sec 143 of the for the other information. The other information

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 Annual Report 2023 - 24

comprises the information included in the Annual give a true and fair view and are free from material
report but does not include the consolidated financial misstatement, whether due to fraud or error, which
statements and our auditor’s report thereon. have been used for the purpose of preparation of the
Our opinion on the consolidated financial statements consolidated financial statements by the Directors of
does not cover the other information and we do not the Holding Company, as aforesaid.
express any form of assurance conclusion thereon. In preparing the consolidated financial statements,
In connection with our audit of the consolidated the respective Board of Directors of the companies
financial statements, our responsibility is to read the included in the Group and of its associate and joint
other information and, in doing so, consider whether venture are responsible for assessing the ability of the
the other information is materially inconsistent Group and of its associate and joint venture, disclosing,
with the consolidated financial statements, or our as applicable, matters related to going concern and
knowledge obtained in the audit or otherwise using the going concern basis of accounting unless
appears to be materially misstated. If, based on the management either intends to liquidate the Group or
work we have performed, we conclude that there is a to cease operations, or has no realistic alternative but
material misstatement of this other information, we to do so.
are required to report that fact. We have nothing to The respective Board of Directors of the companies
report in this regard. included in the Group and of its associate and joint
venture are responsible for overseeing the financial
Responsibilities of Management for the reporting process of the Group and of its associate
Consolidated Financial Statements and joint venture.
The Holding Company’s Board of Directors is
responsible for the preparation and presentation of Auditor’s Responsibilities for the Audit of
these consolidated financial statements in term of the Consolidated Financial Statements
the requirements of the Companies Act, 2013 that Our objectives are to obtain reasonable assurance
give a true and fair view of the consolidated financial about whether the consolidated financial statements
position, consolidated financial performance and as a whole are free from material misstatement,
consolidated cash flows of the Group, its associate whether due to fraud or error, and to issue an
and joint venture in accordance with the accounting auditor’s report that includes our opinion. Reasonable
principles generally accepted in India, including the assurance is a high level of assurance but is not a
Accounting Standards specified under section 133 guarantee that an audit conducted in accordance
of the Act. The respective Board of Directors of the with SAs will always detect a material misstatement
companies included in the Group and of its associate when it exists. Misstatements can arise from fraud or
and joint venture are responsible for maintenance error and are considered material if, individually or in
of adequate accounting records in accordance with the aggregate, they could reasonably be expected to
the provisions of the Act for safeguarding the assets influence the economic decisions of users taken on
of the Group and of its associate and joint venture the basis of these financial statements.
and for preventing and detecting frauds and other As part of an audit in accordance with SAs, we exercise
irregularities; selection and application of appropriate professional judgment and maintain professional
accounting policies; making judgments and estimates scepticism throughout the audit. We also:
that are reasonable and prudent; and the design,
implementation and maintenance of adequate • Identify and assess the risks of material
internal financial controls, that were operating misstatement of the consolidated financial
effectively for ensuring accuracy and completeness of statements, whether due to fraud or error,
the accounting records, relevant to the preparation design and perform audit procedures
and presentation of the financial statements that responsive to those risks, and obtain audit

164
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evidence that is sufficient and appropriate and whether the consolidated financial
to provide a basis for our opinion. The risk statements represent the underlying
of not detecting a material misstatement transactions and events in a manner that
resulting from fraud is higher than for one achieves fair presentation.
resulting from error, as fraud may involve We communicate with those charged with governance
collusion, forgery, intentional omissions, regarding, among other matters, the planned scope
misrepresentations, or the override of and timing of the audit and significant audit findings,
internal control. including any significant deficiencies in internal
• Obtain an understanding of internal control control that we identify during our audit.
relevant to the audit in order to design We also provide those charged with governance with
audit procedures that are appropriate in a statement that we have complied with relevant
the circumstances. Under section 143(3) ethical requirements regarding independence, and to
(i) of the Companies Act, 2013, we are also communicate with them all relationships and other
responsible for expressing our opinion on matters that may reasonably be thought to bear on
whether the company has adequate internal our independence, and where applicable, related
financial controls system in place and the safeguards.
operating effectiveness of such controls.
Report on Other Legal and Regulatory
• Evaluate the appropriateness of accounting Requirements
policies used and the reasonableness of
accounting estimates and related disclosures 1. As required by the Companies (Auditor’s Report)
made by management. Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11)
• Conclude on the appropriateness of of section 143 of the Act, based on our audit
management’s use of the going concern and on the consideration of report of the other
basis of accounting and, based on the audit auditors on separate financial statements and
evidence obtained, whether a material the other financial information of the subsidiary
uncertainty exists related to events or companies, associate companies and joint
conditions that may cast significant doubt venture companies, incorporated in India, as
on the Group and of its associate and joint noted in the ‘Other Matter’ paragraph we give
venture’s ability to continue as a going in the “Annexure B” a statement on the matters
concern. If we conclude that a material specified in paragraph 3(xxi) of the Order.
uncertainty exists, we are required to
draw attention in our auditor’s report to 2. As required by Section 143(3) of the Act, based
the related disclosures in the consolidated on our audit and on the consideration of report
financial statements or, if such disclosures of the other auditors on separate financial
are inadequate, to modify our opinion. Our statements and the other financial information
conclusions are based on the audit evidence of subsidiaries, associate and joint venture as
obtained up to the date of our auditor’s noted in the ‘other matter’ paragraph we report,
report. However, future events or conditions to the extent applicable, that:
may cause the Group and its associate and As required by Section 143(3) of the Act, we
joint venture’s to cease to continue as a report that:
going concern.
(a) We/the other auditors whose reports we
• Evaluate the overall presentation, structure have relied upon, have sought and obtained
and content of the consolidated financial all the information and explanations which
statements, including the disclosures, to the best of our knowledge and belief

165
 Annual Report 2023 - 24

were necessary for the purposes of our accordance with Rule 11 of the Companies
audit of the aforesaid consolidated financial (Audit and Auditors) Rules, 2014, in our
statements; opinion and to the best of our information
(b) In our opinion, proper books of account as and according to the explanations given to
required by law relating to preparation of the us and based on the consideration of the of
aforesaid consolidated financial statements the report of the other auditors on separate
have been kept so far as it appears from our financial statements as also the other
examination of those books and reports of financial information of the subsidiaries and
the other auditors; of its associate and joint venture as notes in
‘Other Matter’ paragraph;
(c) The Consolidated Balance Sheet, the
Consolidated Statement of Profit and Loss i. The consolidated financial statements has
including the Consolidated Statement disclosed the impact of pending litigations
of Other Comprehensive Income, the on its consolidated financial position–
Consolidated Statement of Changes in Refer Note 37 to the Consolidated financial
Equity and the Consolidated Statement of statements.
Cash Flows dealt with by this Report are in ii. The Group and of its associate and joint
agreement with the books of account; venture did not have any long-term
(d) In our opinion, the aforesaid consolidated contracts including derivative contracts for
financial statements comply with the Indian which there were any material foreseeable
Accounting Standards specified under losses; and
Section 133 of the Act, read with Companies iii. There has been no delay in transferring
(Indian Accounting Standard) Rules, 2015 as amounts required to be transferred to the
amended; Investor Education and Protection Fund
(e) On the basis of the written representations by the Group and of its associate and joint
received from the directors of the Holding venture.
as on 31 March 2024 taken on record by the iv. a) The respective managements of the
Board of Directors of the Holding Company
Holding Company and its subsidiaries,
and the reports of the statutory auditors
associates and joint ventures which are
who are appointed under section 139 of the
Act, of its subsidiary companies, associate companies incorporated in India whose
and joint venture none of the directors of financial statements have been audited
the Group and of its associate and joint under the Act have represented to us and
venture is disqualified as on 31 March 2024 the other auditors of such subsidiaries,
from being appointed as a director in terms associates and joint ventures respectively
of Section 164 (2) of the Act; that, to the best of its knowledge and belief,
no funds have been advanced or loaned or
(f) With respect to the adequacy of the internal invested (either from borrowed funds or
financial controls over financial reporting of share premium or any other sources or kind
the Holding Company and its subsidiaries
of funds) by the Group, associates and joint
and of its associate and joint venture and
ventures to or in any other person or entity,
the operating effectiveness of such controls,
including foreign entities (“Intermediaries”),
refer to our separate report in “Annexure
C”, and with the understanding, whether recorded in
writing or otherwise, that the Intermediary
(g) With respect to the other matters to shall, whether, directly or indirectly lend or
be included in the Auditors’ Report in invest in other persons or entities identified

166
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in any manner whatsoever by or on behalf has caused us or the other auditors to

of the Group, associates and joint ventures believe that the representations under sub-
(“Ultimate Beneficiaries”) or provide any clause (a) and (b) contain any material mis-
guarantee, security or the like on behalf of statement;
the Ultimate Beneficiaries; v. The Holding Company, its subsidiaries,
b) The respective managements of the Holding associates and joint venture companies
Company and its subsidiaries, associates incorporated in India have not declared
and joint ventures which are companies or paid any dividend during the year and
incorporated in India whose financial therefore, compliance with section 123 of
statements have been audited under the the Companies Act, 2013 is not applicable.
Act have represented to us and the other vi. Based on our examination which included
auditors of such subsidiaries, associates and test checks and that performed by the
joint ventures respectively that, to the best respective auditors of the subsidiaries,
of its knowledge and belief, no funds have associates and joint ventures which are
been received by the Group, associates companies incorporated in India whose
and joint ventures from any person or financial statements have been audited
entity, including foreign entities (“Funding under the Act, except for the HMT Limited
Parties”), with the understanding, whether (the holding company), HMT Machine Tools
recorded in writing or otherwise, that the Limited and HMT Watches Limited, the
Group, associates and joint ventures shall, company, subsidiaries, associates and joint
whether, directly or indirectly, lend or invest ventures have used an accounting software
in other persons or entities identified in any for maintaining its books of account which
manner whatsoever by or on behalf of the has a feature of recording audit trail (edit
Funding Party (“Ultimate Beneficiaries”) or log) facility and the same has operated
provide any guarantee, security or the like throughout the year for all relevant
on behalf of the Ultimate Beneficiaries; and transactions recorded in the software.
c) Based on the audit procedures that Further, during the course of our audit,
have been considered reasonable and we and respective auditors of the above
appropriate in the circumstances performed referred subsidiaries, associates and joint
by us and that performed by the auditors ventures did not come across any instance
of the subsidiaries, associates and joint of audit trail feature being tampered
ventures which are companies incorporated with. Additionally, the audit trail has been
in India whose financial statements have preserved by the Company and above
been audited under the Act, nothing has referred subsidiaries, associates and joint
come to our or other auditor’s notice that ventures as per the statutory requirements
for record retention.
for N S V M & Associates
Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVM3702
Place: Bengaluru
Date: 20-09-2024

167
 Annual Report 2023 - 24

Annexure A to Independent Auditor’s Report

The Annexure A referred to in the Independent (b) Food Processing Machinery Unit, Aurangabad:
Auditor’s Report to the Members of HMT Limited
(‘the Holding Company’) for the year ended 31 March 1. As per information and explanation
2024, the qualified opinion given on the previous year given to us with regards to the Inventory
figures (by previous Auditors) is as follows : valuation as stated in Note No. 2 (ii) (j)
stock of raw material is valued by adopting
I. HMT Limited. Weighted Average Cost method. However,
(a) Corporate Head Office and Company as a whole: in the inventory statement provided for
verification purpose, correctness of stock
1. Non-confirmation of balances of Trade items rates could not be verified due to
Receivables, Loans and Advances, Trade absence of sufficient and appropriate audit
Payables and Other Current Liabilities evidence. Owing to the nature of Company’s
and its consequential impact if any on the records and in the absence of sufficient
Standalone Ind AS financial statements audit evidence, we are unable to ascertain
cannot be quantified. if there is material departure from the
Weighted Average Cost Method of valuation
2. The Company has not provided status quo of adopted by company. We are also unable to
Nigeria Machine Tools Ltd. and Gujarat State ascertain its consequent impacts, if any, on
Machine Tools Corporation Ltd as on 31st the Ind AS financial statements.
March, 2023. Consequently, we are unable
to comment on the impact of the same on II. HMT Machine Tools Limited (“MTL”):
Standalone Ind AS financial statements. 1. Non-confirmation of balances of Trade
3. We draw your attention to Note No.63 Receivables, Loans and Advances, Trade
wherein the Company has stated that it has Payables and Other Current Liabilities and its
no transactions with struck off companies consequential impact if any on the Standalone
under section 248 of The Companies Act, Ind AS financial statements cannot be quantified.
2013. However, Company has not provided (a) MBX, Bangalore:
appropriate audit evidence to establish that
they do not have such transactions. Indian 1. Non-compliance with Ind AS, as per
Accounting Standards requirement of the Indian Accounting
Standards (Ind AS) specified under section
4. Company for Impairment on Financial Assets 133 of the Act., read with Rule 7 of the
as per Ind-AS 109 has to apply expected Companies (Accounts) Rules, 2014 and the
credit loss (ECL) model for measurement and Companies (Indian Accounting Standards)
recognition of impairment loss. However, as Rules, 2015, as amended on the following
per the information and explanation given standards: Ind AS 2–According to the details
to us no ECL matrix was prepared for the and information provided to us, the value of
period under audit for creating provision Raw Materials, Work-in-progress and Stock
for loss allowance. Hence, we are unable to In Trade (Finished Goods) are taken on the
ascertain its impact, if any, on the Standalone basis of job cards issued for the particular
Ind AS financial statements. The effect on work order and stock taking is on Weighted
revenue on all the above transactions are Average basis, however, due to non-
not ascertained. availability of valuation report and detailed

168
 Annual Report 2023 - 24

working of Inventories, we are unable to delay in making payments (which have been
comment on the compliance with Ind AS paid but beyond the appointed day during
2 and the impact on financials due to this. the year) but without adding the Interest
Also, the physical verification of stock has specified under micro, small, and Medium
not been done at regular intervals. Enterprises Development Act, 2006.
2. In the absence of confirmation from (c) MTP, Pinjore:
parties regarding Trade payables, Trade
receivables, Advances received, Advances 1. As per Ind AS -19, defined benefit plan is
paid, Deposits (including security deposit), termed as any plan in which the enterprise
the No provision has been made in these has obligation to provide the agreed
Accounts for interest / penalty / damages benefits to current and former employees
for the delayed remittance of provident and the actuarial risk and investment
fund dues to the appropriate authorities risk fall. Therefore, the unit has not
as at 31st March 2023 and the same is non determined the actuarial valuation liability
quantifiable. Further, no provision has been for Provident Fund dues as at 31st March,
made for penalty/damages, if any payable 2023. Consequent effect of the same on
on non-settlement/non-payment of gratuity the financial statements for the years is
dues as at 31st March 2023. We are unable not ascertainable. Accordingly, provident
to express an opinion on the impact of this fund set up employer which require
nonprovision on the financial statements. interest shortfall to be met by the employer
would be in effect defined benefit plan in
(b) MTA, Ajmer accordance with Ind AS -19. Hence this is not
in compliance with the Ind AS-19 Employee
1. Ind AS-36 : Impairment test not done by Benefits.
Ajmer Unit on various assets. Hence financial
implication of not conducting impairment 2. As per Ind AS-36, Impairment of Assets, the
test could not be ascertained. objective of this Standard is to prescribe
the procedures that an entity applies to
2. We are unable to comment on the ensure that its assets are carried at no
applicability of Ind AS–116, Leases to the more than their recoverable amount. An
unit since the required information are not asset is carried at more than its recoverable
made available to us. amount if its carrying amount exceeds
3. The unit has defaulted in settlement/ the amount to be recovered through use
payment of gratuity to the extent of or sale of the asset. If this is the case, the
Rs. 2,00,62,661/- in the case of employees asset is described as impaired and the
retired/separated from the unit. Further the Standard requires the entity to recognise
unit has not made any provision for penalty an impairment loss. The Standard also
for non-payment/ settlement of gratuity as specifies when an entity should reverse an
per the Payment of Gratuity Act, 1972. The impairment loss and prescribes disclosures.
amount of penalty has not been ascertained However the company has failed to conduct
by the unit, being contingent in nature. an impairment test of assets, as otherwise
advised to be conducted once annually.
4. Ajmer Unit has not paid any interest which
has been due and payable for the period of

169
 Annual Report 2023 - 24

(d) MTH, Hyderabad FOR customer premises basis. Recognition

of sales revenue on invoice basis in FOR
1. Property, plant & equipment is charged at
customer premise contracts without actual
100% of the cost of asset over their useful
delivery at customer premises has resulted
life. The residual value for all the assets has
in overstatement of sales by 16.43 crore and
been standardized at Re 1. The Division has
understatement of stock in trade by Rs 12.19
not appropriately justified and disclosed
crore with consequential understatement of
in the Notes to Accounts for charging
Loss by Rs 4.24 crore.
depreciation at 100% of the cost of asset
over their useful life. In our opinion this 4. Property Tax of Rs.25.21 Crores is payable to
is a departure from the Schedule II of the Greater Hyderabad Municipal Corporation
Companies Act, 2013 where it is stated that (GHMC) on Factory and Township of HMT
Residual value should be 5% for the tangible machine Tools Limited, Hyderabad (MTH).
assets and depreciation should be charged Since the stay order obtained by MTH on
at ninety five percent of the cost of asset payment of property tax to GHMC was
over their useful life. The Impact of such non- vacated in the month October 2022 by
compliance on the loss, Assets and liabilities Hon’ble High Court of Telangana, GHMC
could not be ascertained. Our observation raised (November 2022) demand on MTH
revealed that the division has not complied for payment of property tax of 25.21 crore
with “Component” based depreciation in respect of Factory and Township of MTH.
method as required by Ind AS 16 despite the However, the company has not made the
stated policy and necessary identification of necessary entries in this regard.
components of an item of PPE has not been
identified and depreciated accordingly. The 5. Hyderabad Metropolitan Water Supply
impact of such noncompliance on the loss & Sewerage Board (HMWSSB) has raised
and the accumulated depreciation could Rs.12.31 crore water and sewerage charges
not be ascertained. bill. However, the company has not made
necessary entries in this regard.
2. Employee Benefits: Our observation revealed
that the division is not in compliance with 6. Southern Power Distribution Company
para 57 of IND AS 19, as defined benefit of Telangana (TSSPDCL) has revised its
plan does not include Current service cost earlier demand of Rs 1.84 crore to Rs 1.16
plus interest obligation thereof nor does it crore. Company has disclosed this amount
incorporate plan asset. The impact of the as contingent liability but not made any
such non compliance on the loss and the provision in this regard.
current liabilities could not be ascertained. (e) MTM, Bangalore
3. Sale of goods includes Rs.16.43 crore 1. Compliance of Ind AS-36 Impairment of
pertaining to four machines dispatched to Assets : We draw attention towards Ind
customers on Free-on-Road (FOR) basis at AS- 36 Impairment of Assets in relation to
Customers premises. Though, the invoices the assessment of potential impairment
in respect of the four contracts were raised loss of assets of the unit. In respect of the
on or before 31st March 2023, the risk and company’s procedure the asset verification
reward of ownership was not transferred is conducted by the management once in
before 31st March 2023, the risk and reward every three years and accordingly as per
of ownership was not transferred before the verification report conducted in the
31st March 2023 as the contracts were on

170
 Annual Report 2023 - 24

Financial Year 2020-2021, it is noted that, the to Rs.2,68,727.66 lakhs against which the
unit is yet to take management approval for paid up capital of the company is Rs.649.01
disposal of said assets as per the company’s lakhs and the losses has totally eroded the
procedure and the quantum of impairment net worth of the company.
value is not available to report.
4. The company has been incurring continues
2. Interest on delayed Provident Fund losses for the past many years.
remittance and loss of the fund for the
Financial Year 2022- 23 has not been provided 5. The total liabilities of the company as at the
for as amount was not ascertainable. close of 31st March 2023 is Rs. 2,69,382.96
lakhs (Previous year Rs. 2,72,473.57/- lakhs)
3. The disclosure requirements as per Schedule against which the Fixed and current assets
III of the Companies Act 2013 read with book values are only Rs. 1,304.31 lakhs
Section 22 of the Micro, Small and Medium (Previous year Rs.4,245.30 lakhs).
Enterprises Development Act, 2006 in the
financial statements. (b) As per the communication received from Ministry
of Heavy Industries and Public Enterprises vide
II. HMT Watches Limited (“HWL”) letters dated 13.01.2017 & 27.03.2017, the
(a) Going Concern Status: company has not adjusted / written off the GOI
Loans and holding company loans amounting to
1. A material uncertainty exists that may cast Rs. 2,69,378.75 lakhs during the financial year
significant doubt on the entity’s ability to 2022-23. However, as per the minutes of 79th
continue as a going concern and that the meeting of Board of Directors of HMT Watches
financial statements do not adequately Ltd, the board has decided to account the write
disclose this matter. off loan together with interest at the time of
closure of the company as approved by CCEA
2. The Board of Directors in its 72nd board vide letter dated 13.01.2016. Consequently, the
meeting held as on 18.01.2016 have decided company has overstated the GOI liabilities (Note
to close down the company after getting 2.12) to the extent of Rs.2,69,378.75 lakhs and
the approval from cabinet committee of overstated the negative balance of Other Equity
Economic Affairs. (Note 2.10) by Rs.2,68,378.75 lakhs. Further,
3. The accumulated losses of the company as any provision required which is resulting from
at the close of 31st March 2023 amounted above transactions is also not accounted and not
ascertained.

for N S V M & Associates

Chartered Accountants
Firm registration number: 010072S

G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVM3702
Place: Bengaluru
Date: 20-09-2024

171
 Annual Report 2023 - 24

Annexure B to the Independent Auditor’s Report

HMT Limited
The Annexure B referred to in the Independent Auditor’s Report to the Members of HMT Limited (‘the holding
Company’) for the year ended 31 March 2024, we report that:
In terms of the information and explanations sought by us and given by the Company and the books of account
and records examined by us in the normal course of audit and to the best of our knowledge and belief, we
state that:
(xxi) Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order
(CARO) reports of the companies included in the consolidated financial statements are:
Clause number of the CARO
Sl.
Name of Company CIN Relation report which is qualified or is
No.
adverse
1 H M T Limited L29230KA1953GOI000748 Holding Clause (i) (b)
Company Clause (i) (c)
Clause(iii) (a) (A)
Clause(iii) (c)
Clause(iii) (d)
Clause(iii) (f)
Clause (vii) (a)
Clause (vii) (b)
Clause (ix) (a)
Clause (xiv) (b)
2 HMT Machine Tools U02922KA1999GOI025572 Subsidiary Clause (i) (b)
Limited Company Clause (vii) (a)
Clause (vii) (b)
Clause (ix) (a)
Clause (xvii)
3 HMT Watches Limited U33301KA1999GOI25573 Subsidiary -
Company
4 HMT (INTERNATIONAL) U3309KA1974GOI002707 Subsidiary -
Limited Company
for N S V M & Associates
Chartered Accountants
Firm registration number: 010072S
G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVM3702
Place: Bengaluru
Date: 20-09-2024

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 Annual Report 2023 - 24

Annexure C to the Independent Auditors’ Report

on the Consolidated Financial Statements of HMT Limited for the period ended 31 March 2024

Report on the Internal Financial Controls Auditor’s Responsibility

with reference to the aforesaid consolidated Our responsibility is to express an opinion on the
financial statements under Clause (i) of Sub- internal financial controls over financial reporting
section 3 of Section 143 of the Companies of the company based on our audit. We conducted
Act, 2013 (‘the Act’) our audit in accordance with the Guidance Note on
(Referred to paragraph 1(f) under ‘Report on other audit of internal financial controls and the Standards
regulatory requirements’ Section of our report to the on Auditing, issued by Institute of Chartered
members of HMT Limited of even date) Accountants of India and deemed to be prescribed
under Section 143(10) of the Companies Act, 2013, to
We have audited the internal financial controls over the extent applicable to an audit of internal financial
financial reporting of “HMT Limited” as of March controls. Those Standards and the Guidance Note
31, 2024, in conjunction with our audit of the require that we comply with ethical requirements
Consolidated financial statements for the year ended and plan and perform the audit to obtain reasonable
on that date. assurance about whether adequate internal financial
Management’s Responsibility for Internal controls over financial reporting was established and
Financial Controls maintained and if such controls operated effectively
in all material respects.
The respective Board of Directors of the Holding
Company, its subsidiaries and its associate and joint Our audit involves performing procedures to obtain
venture is responsible for establishing and maintaining audit evidence about the adequacy of the internal
internal financial controls based on the internal financial controls system over financial reporting and
control over financial reporting criteria established their operating effectiveness. Our audit of internal
by the Holding Company considering the essential financial controls over financial reporting included
components of internal control stated in the Guidance obtaining an understanding of internal financial
Note on Audit of Internal Financial Controls over controls over financial reporting, assessing the risk
Financial Reporting (the ‘Guidance Note’) issued by that a material weakness exists, and testing and
the Institute of Chartered Accountants of India. These evaluating the design and operating effectiveness
responsibilities include the design, implementation of internal control based on the assessed risk.
and maintenance of adequate internal financial The procedures selected depend on the auditor’s
controls that were operating effectively for ensuring judgement, including the assessment of the risks of
the orderly and efficient conduct of its business, material misstatement of the consolidated financial
including adherence to the respective company’s statements, whether due to fraud or error.
policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and We believe that the audit evidence we have obtained
completeness of the accounting records, and the and the audit evidence obtained by the other auditors
timely preparation of reliable financial information, in terms of their reports referred to in the Other
as required under the Companies Act, 2013. Matter Paragraph below, is sufficient and appropriate
to provide a basis for our audit opinion on the internal
financial controls system over financial reporting.

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 Annual Report 2023 - 24

Meaning of Internal Financial Controls Opinion

over Financial Reporting 1. Qualified Opinion of HMT Limited
A company’s internal financial control over financial According to the information and explanations
reporting is a process designed to provide reasonable given to us and based on our audit, the Company
assurance regarding the reliability of financial has not established its internal control over
reporting and the preparation of financial statements financial reporting criteria considering the
for external purposes in accordance with generally essential components of internal control stated
accepted accounting principles. A company’s internal in the Guidance Note on Audit of Internal
financial control over financial reporting includes Controls over Financial Reporting issued by the
those policies and procedures that: Institute of Chartered Accountants of India. As
(1) pertain to the maintenance of records that, in a result, we are unable to obtain sufficient and
reasonable detail, accurately and fairly reflect appropriate audit evidence to provide a basis for
the transactions and dispositions of the assets of our opinion whether the company has adequate
the company; internal control over financial reporting and
whether such internal control was operating
(2) provide reasonable assurance that transactions effectively as on 31st March, 2024.
are recorded as necessary to permit preparation
of financial statements in accordance with Based on the limited audit procedures performed
generally accepted accounting principles, and by us during the course of our audit, the
that receipts and expenditures of the company following material weakness has been identified
are being made only in accordance with in the operating effectiveness of the Company’s
authorizations of management and directors of internal financial control over financial reporting
the company; and as at 31st March, 2024:

(3) provide reasonable assurance regarding (i) Food Processing Machinery Unit, Aurangabad
prevention or timely detection of unauthorized (a) The branch does not have an appropriate
acquisition, use, or disposition of the company’s internal control system for inventory as
assets that could have a material effect on the there is no integration between the financial
financial statements. accounting module and inventory module.
Inherent Limitations of Internal Financial (b) The branch does not have adequate internal
Controls over Financial Reporting controls reconciling and obtaining balance
Because of the inherent limitations of internal confirmation from Sundry Debtors, Sundry
financial controls over financial reporting, including Creditors and other parties. This could
the possibility of collusion or improper management result in material weakness, in the financial
override of controls, material misstatements due to reporting process of debtors, creditors and
error or fraud may occur and not be detected. Also, other parties.
projections of any evaluation of the internal financial
(c) The branch has not maintained proper
controls over financial reporting to future periods are
records and reconciliations of GST, TDS on
subject to the risk that the internal financial control
GST Liability, which have a material impact
over financial reporting may become inadequate
on the financial reporting of such amounts
because of changes in conditions, or that the degree
in the financial statements. Further, the
of compliance with the policies or procedures may
branch does not have adequate internal
deteriorate.
control on the payments of statutory dues

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 Annual Report 2023 - 24

i.e., GST, TDS, PF, PT ESIC etc. within due (i) In respect of PTH, Praga Tools Hyderabad
dates.
(a) The company did not have adequate
(ii) Auxiliary Business Division, Bengaluru appropriate internal controls for reconciling
inventories resulting into im-proper update
(a) The Branch does not have an appropriate to the financial books, physical verification
internal control system to reconcile the of inventory and Fixed Assets, obtaining
financial accounts pertaining to Goods balance confirmation from sundry debtors,
and Services Tax etc. with the relevant tax sundry creditors and other parties. The
records and returns which can possibly company is incurring cash losses from more
result into under/over statement of such than “3” years, not able to serve the Govt.
amounts in the financial statements. Such Of India loans. This could potentially result
non-reconciliation also raises the possibility a material weakness, in financial reporting
of not properly accounting the purchases/ process of debtors, creditors and other
procurements. parties.
(b) The Branch does not have appropriate (b) The company does not have an appropriate
internal control with respect to Inventory internal control system to reconcile the
and valuation of inventory. financial accounts pertaining to Goods
(c) The Branch does not have a proper system and Services Tax etc. with the relevant tax
of control over invoicing, sales and inventory records and returns which can possibly
from different outlets. result into under/over statement of such
amounts in the financial statements. Such
(iii) Corporate Head Office and Company as a non-reconciliation also raises the possibility
whole of not properly accounting the purchases/
(a) The company does not have an adequate procurements. And adequate internal
internal control system for obtaining balance control is not initiated in respect of payment
confirmations from Sundry Debtors, Sundry of statutory dues within due dates and filing
Creditors and other parties. This may result of statutory dues under various statutes in
in material misstatement in the standalone turn resulting in various penalties, late fees
financial statements. and other consequences under different
statutes.
2. HMT Machine Tools Limited (“MTL”)
(ii) In respect of MTA Ajmer
In our opinion, to the best of our information
and according to the explanations given to us, (a) The company does not have adequate
two divisons viz.,1) HMT- Hyderabad (Disclaimer internal control in regard to physical
Opinion as above) & 2) Praga Tools –Hyderabad verification of inventory which shall have a
,the following material weaknesses is identified material impact on the financial statements.
in the company relating to inadequate internal (b) The branch does not have adequate internal
financial controls over financial reporting as controls reconciling and obtaining balance
at March 31st 2024 considering the essential confirmation from Sundry Debtors, Sundry
components of internal control stated in the Creditors and other parties. This could
Guidance Note on Audit of Internal Financial result in material weakness, in the financial
Controls Over Financial Reporting issued by the reporting process of debtors, creditors and
Institute of Chartered Accountants of India (ICAI). other parties.

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 Annual Report 2023 - 24

(c) The company does not have adequate (v) In respect of MTH, Hyderabad
internal financial control on keeping
sufficient cash balances with it in order to (a) The branch does not have an appropriate
pay the statutory dues within due dates internal control in regard to maintenance of
which has led the entity to incur penalties books of accounts and a proper Accounting
and late fees under various statutes. and Finance matrix is not adopted in regard
to accounting entries passed, modified,
(d) The Branch does not have an appropriate deleted in the Books of Accounts. This may
internal control system to reconcile the pose a severe threat on the accuracy of the
financial accounts pertaining to Goods financial statements.
and Services Tax etc. with the relevant tax
records and returns which can possibly (b) The branch does not have an adequate
result into under/over statement of such internal control in respect of compliance
amounts in the financial statements. Such to Statutory dues within due dates which
non-reconciliation also raises the possibility in return expose the division for various
of not properly accounting the purchases/ penalties, late fees and other consequences.
procurements. (vi) In respect of MTD, Bengaluru
(iii) In respect of MBX, Bengaluru (a) The branch does not have adequate
(a) The Branch does not have an appropriate internal controls reconciling and obtaining
internal control system to reconcile the balance confirmation from Sundry Debtors,
financial accounts pertaining to Goods Sundry Creditors, deposits, advances and
and Services Tax etc. with the relevant tax other parties. This could result in material
records and returns which can possibly weakness, in the financial reporting process
result into under/over statement of such of debtors, creditors, deposits, advances
amounts in the financial statements. Such and other parties.
non-reconciliation also raises the possibility (b) The branch does not have an adequate
of not properly accounting the purchases/ internal control in respect of filing of
procurements. statutory returns and payments of statutory
(b) The Branch does not have adequate internal dues under various statutes which exposes
control on filing the statutory returns and the company to various late fees, penalties
paying the statutory dues within due dates and other consequences under various
which exposes the company to various late statutes.
fees, penalties and other consequences (vii) In respect of the HMT Machine Tools Limited
under various statutes.
(a) Non reconciliation and non-confirmation of
(iv) In respect of MTP, Pinjore Trade receivables, trade payables balances,
(a) The branch does not have adequate internal deposits, Advance Received against Sales
controls for reconciling and obtaining account, EMD Received and Paid A/c and
balance confirmation from Sundry Debtors, other old balances and advances.
Sundry Creditors and other parties. This (b) Substantial delay / non filings of statutory
could result in material weakness, in the returns and delay/non-payment of statutory
financial reporting process of debtors, dues exposes the Company to various late
creditors and other parties. fees, penalties and other consequences

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under various statutes ex. IT Act, GST Act, company’s annual or interim financial statements will
Profession Tax Act, PF/ESI/Gratuity Acts not be prevented or detected on a timely basis.
(Payments to Funds set up under the Acts),
We have considered the material weaknesses
including Property Taxes which are not
identified and reported above in determining the
ascertainable and provided for in books of
nature, timing, and extent of audit procedures
account in some instances.
applied in our audit of the financial statements of
(c) Lack of centralised control over recording the Company, and these material weaknesses have
and corrective legal/administrative actions affected our opinion on the financial statements of
in responding to an accounting of default/ the Company, and we have issued a qualified opinion
non-payment notices/claims received from on the financial statements.
statutory bodies viz., Income Tax, TDS, GST,
Other Matter
PF, etc.
Our report under Section 143(3)(i) of the Act on the
(d) Need effective centralised management adequacy and operating effectiveness of the internal
control over computerisation, accounting financial controls over financial reporting with
and inventory system with proper staffing reference to these consolidated financial statements
of accounts dept at units and Directorate. of the Holding Company, in so far as it relates to the
A ‘material weakness’ is a deficiency, or a combination three subsidiary companies which are companies
of deficiencies, in internal financial control over incorporated in India, is based on the corresponding
financial reporting, such that there is a reasonable reports of the auditors of such subsidiaries to the
possibility that a material misstatement of the extent made available to us.

for N S V M & Associates

Chartered Accountants
Firm registration number: 010072S

G C S Mani
Partner
Membership No: 036508
UDIN: 24036508BKDEVM3702
Place: Bengaluru
Date: 20-09-2024

177
 Annual Report 2023 - 24

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION

143(6)(b) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS
OF HMT LIMITED, BANGALORE FOR THE YEAR ENDED 31 MARCH 2024
The preparation of consolidated financial statements of HMT Limited, Bangalore for the year ended 31 March
2024 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 (Act) is
the responsibility of the management of the Company. The Statutory Auditors appointed by the Comptroller
and Auditor General of India under Section 139 (5) read with Section 129 (4) of the Act are responsible for
expressing opinion on the financial statements under Section 143 read with Section 129 (4) of the Act based
on independent audit in accordance with the Standards on Auditing prescribed under Section 143(10) of the
Act. This is stated to have been done by them vide their Revised Audit Report dated 20 September 2024 which
supersedes their earlier Audit Report dated 09 August 2024.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
consolidated financial statements of HMT Limited for the year ended 31 March 2024 under Section 143(6)
(a) read with Section 129(4) of the Act. We conducted a supplementary audit of the financial statements of
HMT Machine Tools Limited and HMT Watches Limited (subsidiaries) but did not conduct supplementary
audit of the financial statements of HMT International Limited (subsidiary) and Gujarat State Machine Tools
Corporation Limited (associate company) for the year ended on that date. Further, Section 139(5) and 143(6)
(b) of the Act are not applicable to the joint venture Sudmo HMT Process Engineers (India) Limited, Bangalore
being private entity. Accordingly, Comptroller and Auditor General of India has neither appointed the Statutory
Auditors nor conducted the supplementary audit of this Company. This supplementary audit has been carried
out independently without access to the working papers of the Statutory Auditors and is limited primarily
to inquiries of the Statutory Auditors and Company personnel and a selective examination of some of the
accounting records.
Based on my supplementary audit, I would like to highlight the following significant matters under section
143(6)(b) read with Section 129(4) of the Act which have come to my attention and which, in my view, are
necessary for enabling a better understanding of the financial statements and the related audit report:
Comments pertaining to HMT Machine Tools Limited – a wholly owned subsidiary of HMT
Limited
A. Comments on Profitability
A1. Notes forming part of Financial Statements
Contingent Liabilities (Note 35)
Audit observed from Board Agenda Notes that as on 1 September 2023 cases pending in various Courts
included one at Supreme Court, 24 cases at High Court and 9 cases relating to Commercial and other matters.
However, MTK Unit has not provided the data on pending court cases and in the absence of the data, Audit
could not verify the financial impact on MTK Unit.
B. Comments on Cash Flow

B.1 Cash Flow Statement: Significant Accounting Policies Cash and Cash Equivalents
Cash and cash equivalents of Rs. 1499.88 lakhs included an amount of Rs. 72.59 lakhs pertaining to escrow
accounts which was incorrectly shown as Rs 49.92 lakh. The amount of Rs 72.59 lakh pertains to unspent

178
 Annual Report 2023 - 24

balances of grant received from the Government of India for the Technology Innovation Programme, (SURGE).
As these balances are not freely available to the company, disclosure is required to be made in this regard in
the Cash Flow Statement. This resulted in a non-compliance to provisions of para 48 of IND AS-7.
C. Comments on Accounting Policies
C.1 As per the terms of contracts, 10 per cent of payment is to be released to the MTK unit of the Company
after installation, testing of machines and their being found to be working satisfactorily. Further, the
unit has to assist in finalization of civil works drawing required for machinery foundations. However,
the unit has recognized revenue for the entire amount of the order without completing its performance
obligations. This has resulted in incorrect revenue recognition by the unit as well as the Company. Further,
the Company needs to rectify its policy in this regard.
D. Comments on Disclosure

D.1 Notes to Accounts

a) The Government of Kerala issued (04 November 2015) orders for surrender of excess land of 251.40 acres
as per Hon’ble High Court orders. However, HMT Machine Tools Limited, Kalamassery Unit (MTK) had
filed a special leave petition before the Hon’ble Supreme Court, challenging the Government of Kerala
Revenue department order for resumption of 251.40 acres of land from MTK and Hon’ble Supreme Court
passed (15.01.2016) the order to maintain status quo until further orders. The matter is pending at Court
as of March 2024 but the same was not disclosed in the notes to financial statements. Non-disclosure of
pending case at Court has resulted in notes to financial statements being deficient to that extent.
b) The Roads and Bridges Development Corporation of Kerala Limited requested (30 November 2019) the
MTK Unit for transfer of a portion of above land for construction of Airport — Seaport Highway Phase-
II based on Govt. of Kerala resumption orders. Subsequently, Govt of Kerala requested (16.06.2019)
the Department of Heavy Industry, Gol for allowing the construction activities and for transfer of land
admeasuring 1.6352 hectare on urgent basis. MTK Unit arrived at land compensation of `.16.34 crore for
transferring the above land. However, status in this regard was not disclosed by the unit.
c) As per the disclosure requirement of Para No. 139 (b) of Ind AS-19, an entity shall disclose a description of
the risks to which the defined benefit plan exposes the entity, focused on any unusual, entity specific or
plan specific risks, and of any significant concentrations of risk. However, Management has not made any
disclosures in this regard.

(C. SAILAJA)
Director General
Date: 21st October 2024

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 Annual Report 2023 - 24

Consolidated significant accounting policies for the year ended March 31, 2024

1. Background: of the said associate is completely eroded.

HMT Limited (“the Company”) is a public limited Accordingly, losses have been consolidated to
company domiciled in India and is incorporated in the extent of the value of the investments.
1953 under the provisions of the Companies Act, iii) Principles of consolidation and equity
1913, having Registered Office at HMT Bhavan, 59, accounting:
Bellary Road, Bangalore-560 032. The Company’s
shares are listed in National Stock Exchange of India a) The financial statements of the Company and its
Limited and Bombay Stock Exchange Limited. The subsidiaries are combined on a line by line basis
Company is engaged in the manufacturing of Food by adding together like items of assets, liabilities,
Processing Machineries etc. equity, incomes, expenses and cash flows, after
fully eliminating intra-group balances and intra-
2. Significant Accounting Policies: group transactions.
i) Basis of preparation: b) Profits or losses resulting from intra-group
The financial statements have been prepared to transactions that are recognised in assets, such
comply in all material aspects with the Indian as inventory and property, plant & equipment,
Accounting Standards (“Ind AS”) notified under are eliminated in full.
section 133 of the Companies Act 2013 (“the
c) Eliminate the carrying amount of the parent’s
Act”), read the Companies (Indian Accounting
investment in each subsidiary and the parent’s
Standards) Rules, 2015 and relevant amendment
portion of equity of each subsidiary
rules issued thereafter, as applicable to the
Company and other provisions of the Act. d) Non Controlling Interest’s share of profit / loss of
The financial statements have been prepared on consolidated subsidiary for the year is identified
the historical cost convention on the accrual basis, and adjusted against the income of the group in
except for certain financial instruments which order to arrive at the net income attributable to
are measured at fair values at the end of each shareholders of the Company.
reporting period, as explained in the accounting e) Non Controlling Interest’s share of net assets
policies below. Historical cost is generally based of consolidated subsidiaries is identified and
on the fair value of the consideration given in presented in the Consolidated Balance Sheet
exchange for goods and services. separate from liabilities and the equity of the
ii) Basis of Consolidation: Company’s shareholders.
The consolidated financial statements of f) Investment in Associate and Joint Venture has
HMT Limited (“Parent Company”), subsidiary been accounted under the equity method as per
companies, associates and joint venture Ind AS 28 - Investments in Associates and Joint
(collectively referred as “the Group”) used in Ventures.
the preparation of this consolidated financial
statements have been drawn up on the same g) The Company accounts for its share of post
reporting date as that of the parent company acquisition changes in net assets of associate and
i.e. year ended March 31, 2022. The financial joint venture, after eliminating unrealised profits
statement of the associate company has not and losses resulting from transactions between
received by the parent company and the networth the Company and its associate to the extent of
its share, through its Consolidated Statement

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 Annual Report 2023 - 24

of Profit and Loss, to the extent such change (b) the cost of the item can be measured reliably.
is attributable to the associates’ Statement of
Profit and Loss and through its reserves for the Items of PPE which is held for sale within 12
balance based on available information. months from the end of reporting period is
disclosed at lower of carrying cost or fair value
iv) Summary of Significant Accounting Policies: less cost of sale
a) Use of estimates: The carrying amount of an item of PPE is
The preparation of financial statements in derecognised:
conformity with Ind AS requires the management (a) on disposal; or
to make judgements, estimates and assumptions
that affect the reported amounts of revenues, (b) where no future economic benefits are
expenses, assets and liabilities and the disclosure expected from its use or disposal.
of contingent liabilities, at the end of the
reporting period. Although these estimates are The gain or loss arising from the de-recognition
based on the management’s best knowledge of of an item of PPE shall be included in statement
current events and actions, uncertainty about of profit or loss when the item is derecognised.
these assumptions and estimates could result in Special Tools:
the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities Expenditure on manufactured and bought out
in future periods. Any revision to accounting special tools held for use in the production or
estimates is recognized prospectively. supply of the goods or services and whose use is
greater than one period is considered as an item
b) Property, Plant & Equipment of PPE and is depreciated over its useful life of 5
Property, Plant and Equipment (“PPE”) are years.
stated at cost of acquisition or construction, net
c) Leases
of vatable taxes, less accumulated depreciation
to date. Cost includes direct costs and financing The Company as a lessor  
costs related to borrowing attributable to Leases for which the Company is a lessor is
acquisition that are capitalized until the assets classified as a finance or operating lease.
are ready for use. Whenever the terms of the lease transfer
Expenditure in connection with the development substantially all the risks and rewards of
of land is capitalised in the year in which the ownership to the lessee, the contract is classified
expense is incurred. as a finance lease. All other leases are classified
as operating leases.  
Advances paid towards the acquisition of
property, plant and equipment outstanding at When the Company is an intermediate lessor, it
each balance sheet date is classified as capital accounts for its interests in the head lease and the
advances under other non-current assets. sublease separately. The sublease is classified as
a finance or operating lease by reference to the
The cost of an item of PPE shall be recognised as right-of-use asset arising from the head lease.  
an asset if, and only if:
Operating Leases as a Lessor
(a) It is probable that future economic benefits
associated with the item will flow to the a) Rental income from operating leases is
entity; and generally recognised on a straight-line basis

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 Annual Report 2023 - 24

over the term of the relevant lease except plus any initial direct costs incurred. The right-
where the rentals are structured solely of-use assets is subsequently measured at cost
to increase in line with expected general less any accumulated depreciation, accumulated
inflation to compensate for the Company's impairment losses, if any and adjusted for any
expected inflationary cost increases, such remeasurement of the lease liability.
increases are recognised in the year in which
such benefits accrue. The right-of-use assets is depreciated using the
straight-line method from the commencement
b) Operating lease payments in case of date over the shorter of lease term or useful life
intermediate lease are recognized as an of right-of-use asset.
expense in the Profit and Loss Account on
a straight line basis over the term of the The Company measures the lease liability at
relevant lease. the present value of the lease payments that
are not paid at the commencement date of the
The Company as a lessee lease. The lease payments are discounted using
Leases for which the Company is a lessee is classified the interest rate implicit in the lease, if that rate
as a finance or operating lease.   can be readily determined. If that rate cannot
be readily determined, the Company uses
a) Leases are classified as finance lease whenever incremental borrowing rate. Lease liability and
the terms of the lease transfer substantially all ROU asset have been separately presented in the
the risks and rewards of ownership to the lessee.   Balance Sheet and lease payments have been
classified as financing cash flows.
b) Leases are classified as operating lease when
there is no right of use of an asset and payments d) Borrowing Cost:
on such lease are recognised as expenses in Borrowing cost consist of interest and other
Profit & Loss Account on a straight line basis over costs that an entity incurs in connection with the
the term of relevant lease. borrowing of funds.
c) The Company, as a lessee, recognizes a right- Borrowing costs directly attributable to
of-use asset [ROU] and a lease liability for its acquisition of PPE which take substantial period
leasing arrangements, if the contract conveys of time to get ready for its intended use are also
the right to control the use of an identified included to the extent they relate to the period
asset. The contract conveys the right to control till such assets are ready to be put to use.
the use of an identified asset, if it involves the
use of an identified asset and the Company has All other borrowing costs are expensed in the
substantially all of the economic benefits from period in which they occur.
use of the asset and has right to direct the use
of the identified asset except leases with a term e) Investment Property:
of 12 months or less and low value leases, the Investment properties are measured initially at
company recognises the lease payments as cost, including transaction costs. Subsequent
an operating expenses on a straight line basis to initial recognition, investment properties are
over the term of the lease. stated at cost less accumulated depreciation and
accumulated impairment loss, if any.
The cost of the right-of-use asset shall comprise
of the amount of the initial measurement of the The Company depreciated building component
lease liability adjusted for any lease payments of investment property as per the useful life
made at or before the commencement date prescribed in Schedule II of the Act.

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 Annual Report 2023 - 24

Investment properties are derecognised iv) Research and Development Expenditure:

either when they have been disposed of
or when they are permanently withdrawn Research Phase:
from use and no future economic benefit is Expenditure on research including the
expected from their disposal. The difference expenditure during the research phase
between the net disposal proceeds and the of Research & Development Projects is
carrying amount of the asset is recognised in charged to profit and loss account in the
statement profit or loss in the period of year of incurrence.
de-recognition.
Development Phase:
f) Intangible Assets: Expenditure incurred on Development
i) Intangible assets are stated at cost less Costs, which relate to Design, Construction
accumulated amortization and impairment. and Testing of a chosen alternative for
Intangible assets are amortized over their new or improved material, devices,
respective individual estimated useful lives products, processes, systems or services
on a straight-line basis, from the date that are recognized as an intangible asset. Such
they are available for use. The estimated Intangible assets are amortized based on
useful life of an identifiable intangible asset technical assessment over a period not
is based on a number of factors including exceeding ten years using straight line
the effects of obsolescence, demand, method.
competition, and other economic factors
g) Depreciation and Amortisation:
(such as the stability of the industry, and
known technological advances), and the Depreciation on PPE is provided on straight line
level of maintenance expenditures required basis over the useful life of the various assets as
to obtain the expected future cash flows prescribed in Schedule II to the Act, pro-rata with
from the asset. reference to the date of addition or deletion. As
and when PPE gets fully depreciated, Re.1/- is
ii) Expenditure on Technical Know-how is retained as book value of the PPE. PPE costing
recognized as an Intangible Asset and less than Rs. 10,000/- shall be depreciated to
amortized on straight line method based Re.1/- in the year of purchase.
on technical assessment for a period not
exceeding ten years. The amortization Each part of an item of PPE (also known as
commences when the asset is available for 'Component') with a cost that is significant in
use. relation to the total cost of the item and has
different useful life from that of the PPE it shall
iii) The cost of software internally generated be depreciated separately.
/ purchased for internal use which is not
Special Tools capitalised as PPE is depreciated
an integral part of the related hardware
over the period of five years and items those
is recognized as an Intangible Asset and is
costing less than Rs.750 is depreciated in the
amortized on straight line method based
year of acquisition/manufacture.
on technical assessment for a period not
exceeding ten years. Amortisation methods and useful lives of
intangible assets are reviewed periodically
including at the end of each financial year.

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 Annual Report 2023 - 24

h) Non-current assets held for variable and fixed overhead being allocated on
distribution to owners and the basis of normal operating capacity.
discontinued operations:
Provision for slow moving inventories are made
The Company classifies non-current assets as considering the redundancy. However, provision
held for sale/distribution to owners if their for non moving inventories are made when the
carrying amounts will be recovered principally same are unmoved for more than five years and
through a sale/ distribution rather than through they are not useful for any other alternative
continuing use. Actions required to complete purpose for general or specific orders.
the sale/ distribution should indicate that it is
unlikely that significant changes to the sale/ k) Revenue Recognition:
distribution will be made or that the decision to A customer contract exists if collectability under
sell/ distribute will be withdrawn. Management the contract is considered probable, the contract
must be committed to the sale/ distribution has commercial substance, contains payment
expected within one year from the date of terms, as well as the rights and commitments of
classification. both parties has been approved.
Non-current assets held for sale/for distribution The Company collects goods and service tax
to owners and disposal groups are measured at on behalf of the Government and, therefore,
the lower of their carrying amount and the fair these are not economic benefits flowing to the
value less costs to sell/ distribute. Non-current Company. Hence, they are excluded from the
Assets classified as held for sale/ distribution are aforesaid revenue/ income.
presented separately in the balance sheet.
i) Sale of goods:
i) Government Grants:
Revenues are recognised at the point in time
Government Grants are recognised where there
that the customer obtains control of the goods
is reasonable assurance that the grant will be
or services which is when it has taken title to the
received and all attached conditions will be
products and assumed the risks and rewards of
complied with. When the grant relates to an
ownership of the product or services. Generally,
expense item, it is recognised as income on a
the transfer of title and risks and rewards
systematic basis over the periods that the related
of ownership of goods are governed by the
costs, for which it is intended to compensate are
contractually defined shipping terms.
expenses. When the grant relates to an asset, it
is recognised as income in equal amounts over ii) Rendering of services:
the expected useful life of the related asset.
Revenue from sale of services is recognised by
j) Inventories: reference to the stage of completion. Stage of
Raw materials, stores and Spares, Tools and completion is measured by services performed
Instruments, Scrap, work in progress and to date as a percentage of total services to be
finished goods are valued at the lower of cost performed.
and net realizable value. The cost of materials is iii) Rental Income:
ascertained by adopting Weighted Average Cost
Method. Rental income from operating leases is generally
recognised on a straight-line basis over the term
Cost of work in progress, finished goods and of the relevant lease except where the rentals
goods-in-transit comprises direct materials, are structured solely to increase in line with
direct labour and an appropriate portion of

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expected general inflation to compensate for the Foreign-currency denominated monetary assets
Company's expected inflationary cost increases, and liabilities are translated into the relevant
such increases are recognised in the year in functional currency at exchange rates in effect
which such benefits accrue. at the balance sheet date. The gains or losses
resulting from such translations are included in
iv) Dividend Income: net profit in the statement of profit and loss.
Dividend income is recognised when the Non-monetary assets and non-monetary
Companies right to receive the payment is liabilities denominated in a foreign currency
established, which is generally when shareholders and measured at historical cost are translated at
approve the dividend. the exchange rate prevalent at the date of the
v) Interest Income: transaction.

Interest income, including income arising Transaction gains or losses realized upon
from other financial instruments measured at settlement of foreign currency transactions are
amortised cost, is recognized using the effective included in determining net profit for the period
interest rate method.,,, in which the transaction is settled. Revenue,
expense and cashflow items denominated in
vi) Warranty: foreign currencies are translated into the relevant
Provisions for warranty-related costs are functional currencies using the exchange rate in
recognised when the product is sold or service effect on the date of the transaction.
provided to the customer. Initial recognition m) Retirement & Other Employee
is based on historical experience. The initial Benefits:
estimate of warranty-related costs is revised
annually. Provident Fund is provided for, under a defined
benefit scheme. The contributions are made to
With regard to turnkey projects implemented by the Trust administered by the company.
the company, warranty provision at the rate of 2
percent of the purchase value is provided. Leave encashment is provided for under a
long-term employee benefit based on actuarial
vii) Extended Warranties: valuation.
When the company sells extended warranty, Gratuity is provided for, under a defined benefit
the revenue from sale of extended warranty is scheme, to cover the eligible employees, liability
deferred and recognised over the period covered being determined on actuarial valuation. Annual
by the warranty. Where extended warranties are contributions are made, to the extent required,
included in the price of the product and provide to a trust constituted and administered by the
protection in excess of that provided by normal Life Insurance Corporation of India under which
terms and conditions of sale for the relevant the coverage is limited to Rs.50,000/- per eligible
product, the company will separate and account employee. The balance provision is being
for these two items separately., retained in the books to meet any additional
liability accruing thereon for payment of Gratuity.
l) Foreign Currency Translation:
The functional currency of the Company is the Settlement allowance (“SA”) is provided for,
Indian rupee. These financial statements are under a defined benefit scheme, to cover the
presented in Indian rupees eligible employees, liability being determined on
actuarial valuation.

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 Annual Report 2023 - 24

The Company recognizes the net obligation asset or liability during the year. Current and
of a defined benefit plan i.e. Gratuity and SA deferred tax are recognized in the statement of
in its balance sheet as an asset or liability. profit and loss, except when they relate to items
Gains and losses through re-measurements that are recognized in OCI or directly in equity,
of the net defined benefit liability/ (asset) are in which case, the current and deferred tax are
recognized in other comprehensive income. In also recognized in other comprehensive income
accordance with Ind AS, re-measurement gains or directly in equity, respectively.
and losses on defined benefit plans recognized
in Other Comprehensive Income are not to i) Current taxes:
be subsequently reclassified to statement Current income tax assets and liabilities
of profit and loss. As required under Ind AS are measured at the amount expected to
compliant Schedule III, the Company recognizes be recovered from or paid to the taxation
re-measurement gains and losses on defined authorities. The tax rates and tax laws used to
benefit plans (net of tax) to retained earnings. compute the amount are those that are enacted
Pension is provided for under a defined or substantively enacted, at the reporting date.
contribution scheme, contributions are made ii) Deferred Taxes:
to the Pension Fund administered by the
Government. Deferred income tax assets and liabilities are
recognized on temporary differences between
The amount of Rs.50,000/- per head received/ the tax bases of assets and liabilities and their
receivable from LIC on account of gratuity carrying amounts for financial reporting purposes
claims in respect of employees separated under at the reporting date.
Voluntary Retirement Scheme during the year is
accounted as Other Income. o) Provisions:

In respect of employees who are separated other A provision is recognized when the Company has
than under Voluntary Retirement Scheme, the a present obligation (legal or constructive) as a
Gratuity paid in excess of Rs.50,000/-, Earned result of past event, it is probable that an outflow
Leave Encashment (ELE), SA is debited to the of resources embodying economic benefits
respective provision accounts. The provision at will be required to settle the obligation and a
the yearend for Gratuity, ELE and SA is restated reliable estimate can be made of the amount
as per the actuarial valuation done at the year- of the obligation. If the effect of the time value
end of money is material, provisions are discounted
using a current pre-tax rate that reflects, when
Gratuity, ELE, SA and lumpsum compensation appropriate, the risks specific to the liability.
paid to employees under Voluntary Retirement When discounting is used, the increase in the
Scheme (“VRS”) shall be fully written off in the provision due to the passage of time is recognized
year of incidence. in the statement of Profit and loss.
Expenses incurred in respect of bonds issued A contingent liability is a possible obligation that
for raising funds to meet payments made under arises from past events whose existence will be
the VRS are fully written off in the year of confirmed by the occurrence or non-occurrence
disbursement. of one or more uncertain future events beyond
n) Income taxes: the control of the Company or a present obligation
that is not recognized because it is not probable
Income tax expense comprises current tax that an outflow of resources will be required to
expense and the net change in the deferred tax

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settle the obligation. A contingent liability also use, the estimated future cash flows are
arises in extremely rare cases where there is a discounted to their present value using a
liability that cannot be recognized because it pre-tax discount rate that reflects current
cannot be measured reliably. The Company does market assessments of the time value of
not recognize a contingent liability but discloses money and the risks specific to the asset.
its existence in the financial statements. In determining net selling price, recent
market transactions are taken into account,
p) Impairment: if available. If no such transactions can be
i) Financial assets: identified, an appropriate valuation model
is used.
The Company assesses at each date of
balance sheet whether a financial asset or Impairment losses are recognized in
a group of financial assets is impaired. Ind the statement of profit and loss. After
AS 109 requires expected credit losses to impairment, depreciation is provided on the
be measured through a loss allowance. revised carrying amount of the asset over its
The Company recognises lifetime expected remaining useful life.
losses for all trade receivables that do not
q) Financial Instruments:
constitute a financing transaction. For all
other financial assets, expected credit Financial assets and liabilities are recognized
losses are measured at an amount equal to when the Company becomes a party to the
the 12-month expected credit losses or at contractual provisions of the instrument.
an amount equal to the life time expected Financial assets and liabilities are initially
credit losses if the credit risk on the financial measured at fair value. Transaction costs that are
asset has increased significantly since initial directly attributable to the acquisition or issue
recognition, of financial assets and financial liabilities (other
than financial assets and financial liabilities at
ii) Non-financial assets: fair value through profit or loss) are added to or
The Company assesses at each reporting deducted from the fair value measured on initial
date whether there is an indication that recognition of financial asset or financial liability.
an asset may be impaired. If any indication i) Cash & cash equivalents:
exists, or when annual impairment testing
for an asset is required, the Company The Company considers all highly liquid
estimates the asset’s recoverable amount. financial instruments, which are readily
An asset’s recoverable amount is the higher convertible into known amounts of cash that
of an asset’s or cash-generating unit’s are subject to an insignificant risk of change
(CGU) net selling price and its value in use. in value and having original maturities
The recoverable amount is determined for of three months or less from the date of
an individual asset, unless the asset does purchase, to be cash equivalents. Cash and
not generate cash inflows that are largely cash equivalents consist of balances with
independent of those from other assets banks which are unrestricted for withdrawal
or groups of assets. Where the carrying and usage.
amount of an asset or CGU exceeds its
ii) Financial assets at amortised cost:
recoverable amount, the asset is considered
impaired and is written down to its Financial assets are subsequently measured
recoverable amount. In assessing value in at amortized cost if these financial assets

187
 Annual Report 2023 - 24

are held within a business whose objective vi) De-recognition of financial instruments:
is to hold these assets in order to collect
contractual cash flows and the contractual The Company derecognizes a financial asset
terms of the financial asset give rise on when the contractual rights to the cash flows
specified dates to cash flows that are solely from the financial asset expire or it transfers
payments of principal and interest on the the financial asset and the transfer qualifies
principal amount outstanding. for de-recognition under Ind AS 109. On
derecognition of any financial assets in its
iii) Financial assets at fair value through other entirety, the difference between Carrying
comprehensive income: amount (on date of derecognition) and any
consideration received (including difference
Financial assets are measured at fair value between any new asset and new liability
through other comprehensive income if assumed) shall be recognized in profit or
these financial assets are held within a loss.
business whose objective is achieved by
both collecting contractual cash flows and A financial liability (or a part of a financial
selling financial assets and the contractual liability) is derecognized when the obligation
terms of the financial asset give rise on specified in the contract is discharged or
specified dates to cash flows that are cancelled or expires.
solely payments of principal and interest vii) Fair value of financial instruments:
on the principal amount outstanding. The
Company presents the subsequent changes In determining the fair value of its financial
in fair value in Other Comprehensive instruments, the Company uses following
Income. hierarchy and assumptions that are based
on market conditions and risks existing at
iv) Financial assets at fair value through profit each reporting date.
or loss:
Fair value hierarchy:
Financial assets are measured at fair value
through profit or loss unless it is measured All assets and liabilities for which fair value
at amortized cost or at fair value through is measured or disclosed in the financial
other comprehensive income on initial statements are categorized within the fair
recognition. The transaction costs directly value hierarchy, described as follows, based
attributable to the acquisition of financial on the lowest level input that is significant
assets and liabilities at fair value through to the fair value measurement as a whole:
profit or loss are immediately recognized in • Level 1 — Quoted (unadjusted) market
statement of profit and loss. prices in active markets for identical
v) Financial Liabilities: assets or liabilities
• Level 2 — Valuation techniques
Financial liabilities are subsequently carried for which the lowest level input
at amortized cost using the effective that is significant to the fair value
interest method. For trade and other measurement is directly or indirectly
payables maturing within one year from the observable
balance sheet date, the carrying amounts
approximate fair value due to the short • Level 3 — Valuation techniques
maturity of these instruments. for which the lowest level input

188
 Annual Report 2023 - 24

that is significant to the fair value properties and accounts for the contracts as
measurement is unobservable operating leases.
For assets and liabilities that are recognized b) Discontinued Operations:
in the financial statements on a recurring
basis, the Company determines whether As per the CCEA Approval on 27/10/2016
transfers have occurred between levels in it was decided that the Tractors Divisions
the hierarchy by re-assessing categorization operations will be closed. According the
(based on the lowest level input that is Assets have been classified based on the
significant to the fair value measurement definitions under IND AS16, IND AS 40
as a whole) at the end of each reporting and IND AS 105. It is planned that the
period. company will lease out the major portions
of the land and buildings to a third party to
v) Significant accounting judgements, generate lease rentals for the Company and
estimations and assumptions: accordingly, it is classified as Investment
The preparation of the Company’s financial Properties.
statements requires management to make
c) Property, plant & equipment:
judgements, estimates and assumptions that
affect the reported amounts of revenues, Building at Corporate Head Office, where
expenses, assets and liabilities, and the the significant portion of the property is
accompanying disclosures, and the disclosure used as Company owner occupied property
of contingent liabilities. Uncertainty about and certain portion has been leased out by
these assumptions and estimates could result the Company. The management doesn’t
in outcomes that require a material adjustment have any intention to sell the building and
to the carrying amount of assets or liabilities the portion of building which has been
affected in future periods. leased is for a short period and accordingly,
it has peed classified as PPE.
i) Judgements:
In the process of applying the Company’s ii) Estimates and assumptions:
accounting policies, management has made The key assumptions concerning the future and
the following judgements, which have the most other key sources of estimation uncertainty at
significant effect on the amounts recognised in the reporting date, that have a significant risk
the consolidated financial statements. of causing a material adjustment to the carrying
amounts of assets and liabilities within the next
a) Operating lease– Company as lessor:
financial year, are described below. Existing
The Company has entered into commercial circumstances and assumptions about future
property leases on its investment property developments, however, may change due to
portfolio. The Company has determined, market changes or circumstances arising that
based on an evaluation of the terms and are beyond the control of the Company. Such
conditions of the arrangements, such as changes are reflected in the assumptions when
the lease term not constituting a major they occur.
part of the economic life of the commercial a) Deferred Taxes
property, that it retains all the significant
risks and rewards of ownership of these Deferred Tax Assets must be recognised to
the extent that it is probable that future

189
 Annual Report 2023 - 24

profits will be available against which the through the Actuarial Valuation. The
deductible temporary difference can be Measurement of the expected cost of
utilised. The company does not recognise accumulating compensated absences as
Deferred Tax Asset since the company has the additional amount expected to be paid
unused tax losses and there is no convincing as a result of the unused entitlement that
evidence about future taxable profit. has accumulated at the end of the reporting
period. Expenses on non-accumulating
b) Defined Benefit Obligations:
compensated absences are recognized in
The cost of the defined benefit gratuity the period in which the absences occur.
plan, provident fund and Settlement Service cost, net interest on the net defined
Allowance and the present value of the benefit liability (asset), remeasurements of
gratuity obligation are determined using the net defined benefit liability (asset) and
actuarial valuations. An actuarial valuation other expenses related to long term benefit
involves making various assumptions that plans are recognized in the Statement of
may differ from actual developments in the Profit & Loss.
future. These include the determination of
the discount rate; future salary increases The measurement of long-term employee
and mortality rates. Due to the complexities benefits is not subject to the same degree
involved in the valuation and its long-term of uncertainty as the measurement of
nature, a defined benefit obligation is highly Defined Benefit Obligation. For this reason-
sensitive to changes in these assumptions. the Remeasurement are not recognized in
All assumptions are reviewed at each Other Comprehensive Income.
reporting date. d) Fair value measurement of financial
The parameter most subject to change instruments:
is the discount rate. In determining the
When the fair values of financial assets and
appropriate discount rate, the management
financial liabilities recorded in the balance
considers the interest rates of government
sheet cannot be measured based on quoted
bonds.
prices in active markets, their fair value
The mortality rate is based on publicly is measured using valuation techniques
available mortality tables for the specific including the NAV/NRV model. The inputs
countries. Those mortality tables tend to these models are taken from observable
to change only at interval in response markets where possible, but where this
to demographic changes. Future salary is not feasible, a degree of judgement
increases and gratuity increases are based is required in establishing fair values.
on expected future inflation rates. Judgements include considerations of
inputs such as liquidity risk, credit risk and
c) Other Long-Term Employee Benefits: volatility. Changes in assumptions about
Other Long-Term Employee Benefits like these factors could affect the reported fair
Earned Leave Encashment is determined value of financial instruments.

190
 Annual Report 2023 - 24

vi) The consolidation of financial statement (CFS) present the consolidated accounts of
HMT Limited with its following subsidiaries and associates:

Proportion of Ownership
Nature of Country of
Name of the Company Previous
relationship Incorporation Current Year
Year
HMT Machine Tools Limited Subsidiary India 100% 100%
HMT Watches Limited Subsidiary India 100% 100%
HMT (International) Limited Subsidiary India 100% 100%
Gujarat State Machine Tools Corporation Associate India 39% 39%
Limited
Sudmo HMT Process Engineers (India) Joint Venture India 50% 50%
Limited

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 Annual Report 2023 - 24

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2024

(Rs. in lakhs)
As at As at
Particulars Notes
31-Mar-24 31-Mar-23
ASSETS
Non-current assets
Property, Plant and Equipment 3A 3,863.57 4,208.30
Capital work in progress 3A 331.29 412.50
Investment Property 3B 168.80 188.16
Intangible assets 3C - -
Financial Assets
Investments 4 18.20 18.77
Other Financial Assets 9 429.21 1,713.86
Other Non Current Assets 11 384.18 376.21
5,195.25 6,917.80
Current assets
Inventories 5 11,601.64 11,780.37
Financial Assets
Trade Receivables 6 13,389.87 18,577.42
Cash and Cash Equivalents 7 3,250.34 9,553.46
Bank balances other than Cash and Cash Equivalents 8 21,461.48 15,949.98
Other Financial Assets 9 444.99 361.96
Current Tax Assets (net) 10 747.97 1,577.14
Other Current Assets 11 3,972.75 4,599.89
54,869.04 62,400.22

Non Current Assets Held for Sale 3D 296.15 296.15

TOTAL ASSETS 60,360.44 69,614.17

EQUITY AND LIABILITIES

Equity
Share Capital 12 35,560.16 35,560.16
Other equity 13 (2,10,763.35) (4,65,873.73)
Equity attributable to equity holders of the parent (1,75,203.19) (4,30,313.57)
Non-controlling interests - -
Total equity (1,75,203.19) (4,30,313.57)

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 Annual Report 2023 - 24

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH 2024

(Rs. in lakhs)
As at As at
Particulars Notes
31-Mar-24 31-Mar-23
Non-current Liabilities
Financial liabilities
Borrowings 14 - -
Non Current Financial Liability 15 - -
Other non current liabilities 20 70.36 90.71
Provisions
Provision for Employee Benefits 16 3,437.14 3,864.83
Deferred tax liability (net) 17 0.17 42.68
3,507.67 3,998.22
Current liabilities
Financial Liabilities
Borrowings 14 1,02,937.50 3,72,694.09
Trade payables 18
Total outstanding dues to Micro, Small & Medium 670.08 934.50
Enterprises
Total outstanding dues of creditors other than Micro, Small 8,864.01 7,262.21
& Medium Enterprises
Other financial Liabilities 19 56,831.05 50,622.95
Other Current Liabilities 20 59,708.94 60,461.03
Provisions
Provision for Employee Benefits 16 2,597.17 2,677.31
Others 22 370.33 382.77
Current Tax Liabilities (net) 21 76.88 894.66
2,32,055.96 4,95,929.52
Total liabilities 2,35,563.63 4,99,927.74
TOTAL EQUITY AND LIABILITIES 60,360.44 69,614.17

Significant Accounting Policies and Notes forming part of Accounts

As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & As sociates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVD6248

Place : Bangalore
Date : August 9, 2024
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 Annual Report 2023 - 24

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED

31 MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars Notes
31-Mar-24 31-Mar-23
CONTINUING OPERATIONS
Revenue from Operations 23 16,338.68 20,380.86
Other Income 24 5,397.39 5,464.41
Total Income 21,736.07 25,845.27

EXPENSES
Cost of Materials Consumed 25 8,939.03 9,331.58
Purchase of Stock In Trade 26 536.24 1,136.43
Changes in inventories of finished goods, Stock-in -Trade and Work-in- 27 337.07 2,796.83
progress
Employee Benefits Expense 28 7,582.17 7,746.72
Depreciation and Amortization Expense 29 827.88 932.65
Finance Costs 30 6,806.01 6,901.65
Other Expenses 31 10,307.57 9,154.40
Less: Jobs Done for Internal Use 32 (298.91) (391.49)
Total expense 35,037.06 37,608.77
Profit/(loss) before share of profit/(loss) from investment in associate (13,300.99) (11,763.50)
and a joint venture, exceptional items and tax from continuing
operations
Share of profit/(loss) of an associate and a joint venture 34 (0.57) (0.79)
Profit/(loss)before exceptional items and tax from continuing (13,301.56) (11,764.29)
operations
Exceptional items 33 - 83.83
Profit/(loss)before tax from continuing operations (13,301.56) (11,680.46)
(1) Current tax 458.75 1,186.50
(2) Deferred tax (33.93) 17.38
(3) Adjustment of tax relating to earlier periods (718.60) (408.60)
35 (293.78) 795.28
Profit for the year from continuing operations (13,007.78) (12,475.74)
DISCONTINUED OPERATIONS
Profit/(loss) before tax for the year from discontinued operations 36 3,53,070.16 185.45
Tax Income/ (expense) of discontinued operations (84,986.12) -
Profit/(loss) from discontinued operations 2,68,084.04 185.45
Profit/(loss) for the year 2,55,076.26 (12,290.29)

194
 Annual Report 2023 - 24

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED

31 MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars Notes
31-Mar-24 31-Mar-23
OTHER COMPREHENSIVE INCOME
Other comprehensive income not to be reclassified to profit or loss in
subsequent periods:
Re-measurement gains/ (losses) on defined benefit plans 25.54 (0.49)
Income tax effect - (Credit)/debit (8.58) 6.97
Net other comprehensive income not to be reclassified to profit or 34.12 (7.46)
loss in subsequent periods
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 2,55,110.38 (12,297.75)
Profit/(loss) for the year
Attributable to:
Equity holders 2,55,076.26 (12,290.29)
Non-controlling interests - -
Other Comprehensive Income
Attributable to:
Equity holders 34.12 (7.46)
Non-controlling interests - -
Total comprehensive income for the year
Attributable to:
Equity holders 2,55,110.38 (12,297.75)
Non-controlling interests - -
Earnings per share for continuing operations 47
i) Basic, profit from continuing operations attributable to equity holders (3.66) (3.51)
ii) Diluted, profit from continuing operations attributable to equity (3.66) (3.51)
Earnings per share for discontinued operations
i) Basic, profit from discontinued operations attributable to equity 75.39 0.05
holders
ii) Diluted, profit from discontinued operations attributable to equity 75.39 0.05
holders
Earnings per share from continuing and discontinued operations
i) Basic, profit for the year attributable to equity holders 71.73 (3.46)
ii) Diluted, profit for the year attributable to equity holders 71.73 (3.46)
Significant Accounting Policies and Notes forming part of Accounts
As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVD6248

Place : Bangalore
Date : August 9, 2024

195
 Annual Report 2023 - 24

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED

31 MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
Operating activities

Profit/(loss) before tax from continuing operations (13,301.56) (11,680.46)

Profit/(loss) before tax from discontinued operations 3,53,070.16 185.45
Profit before tax 3,39,768.60 (11,495.01)
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and impairment of property, plant and equipment 808.52 771.89
Depreciation of investment properties 19.36 20.15
Amortisaton of intangible assets - 140.61
Impairment of Intangible assets - 843.68
Gain on disposal of property, plant and equipment (23.09) (81.75)
GOI liabilities waived off (2,69,378.75) -
Grant received from GOI (83,747.00) -
Finance income (including fair value change in financial (1,535.97) (951.70)
instruments)
Finance costs (including fair value change in financial 6,806.01 6,901.65
instruments)
Share of (profit)/ loss of an associate and a joint venture 0.57 0.79
Working capital adjustments:
Movements in provisions 1,210.54 (1,095.10)
Increase in trade and other receivables and prepayments 5,539.68 1,896.97
Decrease in inventories 4.94 2,905.46
Increase in trade and other payables 564.94 10,944.06
38.35 10,801.70
Income tax (paid)/reversed (84,714.88) (508.79)
Net cash flows from operating activities (84,676.53) 10,292.91

Investing activities
Proceeds from sale of property, plant and equipment 23.06 88.22
Purchase of property, plant and equipment (382.55) (575.27)
Deposits with Banks (5,511.50) (3,589.54)
Interest received 1,473.15 1,308.86
Net cash flows used in investing activities (4,397.84) (2,767.73)

196
 Annual Report 2023 - 24

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED

31 MARCH 2024
(Rs. in lakhs)
Year Ended Year Ended
Particulars
31-Mar-24 31-Mar-23
Financing activities
Interest Paid (597.91) (682.42)
Proceeds from borrowings (net) - 1,041.13
Grant received from GOI 83,747.00 -
Repayment of borrowings(net) (377.84) -
Net cash flows from/(used in) financing activities 82,771.25 358.71
Net increase in cash and cash equivalents (6,303.12) 7,883.89
Net foreign exchange difference - -
Cash and cash equivalents at the beginning of the year 9,553.46 1,669.57
Cash and cash equivalents at year end* 3,250.34 9,553.46

Significant Accounting Policies and Notes forming part of Accounts

Note: 1) The above statement has been prepared under the indirect method as set out in Ind AS 7.
2) The Cash and Cash equivalents has been considered as per Note No.7
*Includes Rs.9.79 lakhs in HMT Ltd, payable to minority Shareholders of HMT Bearings Ltd (in Escrow
Account) and Rs.72.59 lakhs in HMT Machine Tools Ltd in respect of SURGE (Rs.49.92 lakhs in Escrow
Account and Rs.22.67 lakhs in current account) as on 31.03.2024.

As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar Aparna R

Partner Company Secretary Chief Financial Officer
Membership No : 036508
UDIN: 24036508BKDEVD6248

Place : Bangalore
Date : August 9, 2024

197
 STATEMENT OF CHANGES IN EQUITY
A. Equity Share Capital
As at 31st March 2024 (Rs. In lakhs)
Changes in Equity Share Balance as at 31st March
Balance as at 1st April 2023
Capital during the year 2024
35,560.16 - 35,560.16
As at 31st March 2023 (Rs. In lakhs)
Changes in Equity Share Balance as at 31st March
Balance as at 1st April 2022
Capital during the year 2023
35,560.16 - 35,560.16

B. Other Equity (Rs.in lakhs)

Reserves and Surplus Other Comprehensive Income
Equity Total equity
Equity Other items
Instruments attributable Non-
Particulars Capital Retained General FVTOCI component of Other
through other to equity controlling Total equity
reserve earnings Reserve reserve of Financial Comprehensive
comprehensive holders of the interests
Liability Income

198
income company
Balance as of 1st April 2,270.82 (4,77,696.35)16,600.97 1.37 - - (7,050.54) (4,65,873.73) - (4,65,873.73)
2023
Changes in accounting - - - - - - - - - -
policy or prior period
errors
Balance as of 1st April 2,270.82 (4,77,696.35) 6,600.97 1.37 - - (7,050.54) (4,65,873.73) - (4,65,873.73)
2023
Discontinued - 2,68,084.04 - - - - - 2,68,084.04 - 2,68,084.04
operations
Dividend Distribution - - - - - - - - - -
Tax
Equity component of - - - - - - - - - -
Financial Liability
Remeasurement - - - - - - 34.12 34.12 - 34.12
of the net defined
benefit liability/asset,
net of tax effect
Total Comprehensive - (13,007.78) - - - - - (13,007.78) - (13,007.78)
Annual Report 2023 - 24

Income for the year

At 31 March 2024 2,270.82 (2,22,620.09)16,600.97 1.37 - - (7,016.42) (2,10,763.35) - (2,10,763.35)
 STATEMENT OF CHANGES IN EQUITY
Reserves and Surplus Other Comprehensive Income
Equity Total equity
Equity Other items
Instruments attributable Non-
Capital Retained General FVTOCI component of Other
Particulars through other to equity controlling Total equity
reserve earnings Reserve reserve of Financial Comprehensive
comprehensive holders of the interests
Liability Income
income company
Balance as of 1st April 2,270.82 (4,65,406.06)16,600.97 1.37 - - (7,043.08) (4,53,575.98) - (4,53,575.98)
2022
Changes in accounting - - - - - - - - - -
policy or prior period
errors
Balance as of 1st April 2,270.82 (4,65,406.06)16,600.97 1.37 - - (7,043.08) (4,53,575.98) - (4,53,575.98)
2022
Discontinued - 185.45 - - - - - 185.45 - 185.45
operations
Dividend Distribution - - - - - - - - - -
Tax
Equity component of - - - - - - - - - -
Financial Liability
Remeasurement of the - - - - - - (7.46) (7.46) - (7.46)
net defined benefit

199
liability/asset, net of
tax effect
Total Comprehensive - (12,475.74) - - - - - (12,475.74) - (12,475.74)
Income for the year
At 31 March 2023 2,270.82 (4,77,696.35)16,600.97 1.37 - - (7,050.54) (4,65,873.73) - (4,65,873.73)
Significant Accounting Policies and Notes forming part of Accounts
As per our Report of even date attached For and on behalf of the Board of Directors of HMT Limited

For NSVM & Associates Rajesh Kohli Sameena Kohli

Chartered Accountants Chairman and Managing Director Director, Finance
F.R.N : 010072S (Addl. Charge) (Addl. Charge)
DIN 10333951 DIN 10663362

GCS Mani Kishor Kumar Shankar

Partner Company Secretary Aparna R
Membership No : 036508 Chief Financial Officer
UDIN: 24036508BKDEVD6248
Annual Report 2023 - 24

Place : Bangalore
Date : August 9, 2024
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
3A. PROPERTY, PLANT AND EQUIPMENT (Rs. in lakhs)
Furniture,
Land & Land Plant and Special Transport Land-
Particulars Buildings Fittings & Office Total
Development Machinery Tools Vehicles Leasehold
Appliances
Gross carrying value
As at 1 April 2022 259.42 3,645.23 38,647.30 1,138.12 2,077.40 103.53 17.09 45,888.09
Additions 0.13 131.57 479.49 8.13 227.03 - - 846.35
Transferred to Investment Property - - - - - - - -
Disposals - - (172.40) (2.76) - - - (175.16)
At 31 March 2023 259.55 3,776.80 38,954.39 1,143.49 2,304.43 103.53 17.09 46,559.28
Additions - 48.26 113.01 3.58 298.91 - - 463.76
Transferred from Investment property - -
Disposals/Adjust - - (18.02) 0.32 - - - (17.70)
At 31 March 2024 259.55 3,825.06 39,049.38 1,147.39 2,603.34 103.53 17.09 47,005.34
Accumulatled Depreciation
As at 1 April 2022 - 2,677.09 35,995.74 1,115.52 1,845.55 103.53 10.35 41,747.78
Depreciation charge for the year - 80.86 556.54 5.35 129.01 - 0.13 771.89
Disposals/Adjust - - (165.93) (2.76) - - - (168.69)
At 31 March 2023 - 2,757.95 36,386.35 1,118.11 1,974.56 103.53 10.48 42,350.98

200
Depreciation charge for the year - 110.29 519.86 6.29 171.96 - 0.12 808.52
Disposals/Adjust - (0.01) (18.74) 1.02 - - - (17.73)
At 31 March 2024 - 2,868.23 36,887.47 1,125.42 2,146.52 103.53 10.60 43,141.77

Net carrying value

At 31 March 2024 259.55 956.83 2,161.91 21.97 456.82 - 6.49 3,863.57
At 31 March 2023 259.55 1,018.85 2,568.04 25.38 329.87 - 6.61 4,208.30

31-03-24 31-03-23
Net carrying value
Property, Plant and Equipment 3,863.57 4,208.30

Capital work in progress - Opening 412.50 683.45

Additions - 16.20
Disposals/Adjust (81.21) (287.15)
Capital work in progress - Closing 331.29 412.50
Additional Information:
Quantum of loss due to Impairment of Assets as per IND AS-36 - Nil
Annual Report 2023 - 24
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Land:
(i) HMT MTL is in possession of land located at Bangalore, Kalamassery & Hyderabad gifted by the respective
State Governments measuring 177.75 Acres, 166.00 Acres and 227.30 Acres respectively, nominally valued
at Rs. 1 each.
(ii) The Company is in possession of leasehold land measuring 30 acres at Aurangabad out of which 5
acres of land has been encroached upon. Further, legal action is being pursued for restoration of the
encroached land.
iii)   Pending finalisation of the rates by the Government of Rajasthan, provision for conversion charges, if any,
payable for conversion of Revenue land for Industrial use at Machine Tool Unit Ajmer, has not been made
in the accounts as the matter is sub-judice and execution of lease deed is pending.
In Khasra No.6767(2.17 Bighas / 0.87 acres of land) has not been transferred in the name of HMT MTL
since 1976. Vacant possession of this land has not been given so far by the Government of Rajasthan.
Though the compensation for land has been paid to land owner but the compensation for built-up Pakka
/ Khaccha houses situated in this land has not been paid till the amount of compensation is finalised by
the Government of Rajasthan, as per the agreement.
iv) In the matter relating to 195 acres and 33 guntas land handed over to HMT-Machine Tools Ltd (HMT-
MTL) by the Govt. of Andhra Pradesh. HMT-MTL has filed Writ Petition No. 20012 of 2003 on the file of
Hon'ble High Court of A.P. against the Govt. of A.P. and others wherein HMT-MTL has sought directions
for demarking 195.33 acres of land for handing over the same to HMT-MTL. As per the survey conducted
during the year 2004-05 by the Offcials of Survey and Settlment Department, Ranga Reddy Dist. in view
of Suprement Court directives, it has come to the notice that approx. 39 acres of land is not in the actual
possession of HMT-MTL, but HMT-MTL has paid for the entire 195.33 acres of land for the decree holders.
Out of the above land, 6000 sq. mts. of land is allotted to APSEB for setting up 33KV Switching Station and
33/11 KV Electrical sub-station. The compensation payable by the APSEB has not yet been determined.
GHMC issued a notice vide notice No. 41/86/RW/TPS/GHMC/SC/2007 dated 01.12.2007 to take over
238.86sq. Yds of land for road widening programme undertaken by them out of the 3000 sq. yds available
at kavadiguda, Secunderabad without any compensation. HMT-MTL had protested for this and raised a
demand for compensation for land proposed to be taken over by them for road widening programme at
prevailing market rate which is pending.
Others:
(1) The carrying amount of temporarily idle property, Plant and Equipment : - NIL
(2) The Holding Company Gross carrying amount of any fully depreciated property, Plant and equipment that
is still in use Rs.10873.48 lakhs.
(3) The Carrying amount of Property, Plant and Equipment retired from active use and not classified as held
for sale in accordance with Ind AS 105 in Auxillary Business Division amounting to Rs.53.49 lakhs.

201
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(4) Fixed assets have been transferrred from the HMT Limited (Holding Company) to HMT Machine Tools Ltd,
(Subsidiary) at gross value of Rs.202.10 Crores. Reserve for Depreciation of Rs.151.46 Cr. and net value
of Rs.50.64 Cr., as on 1.4.2000 in line with para 10(j) and annexure 12 of the Scheme of arrangement
approved by the Department of Company Affairs.
(5) Fixed assets include immovable properties, vested under the scheme of arrangement approved by the
Government of India. However, the mutation of Title Deeds is yet to be done in the name of HMT Machine
Tools Ltd. in Revenue records to that effect. Fresh Lease Deed in respect of Lease hold land are pending
to be executed.
(6) In HMT-MTL, respect to Praga Tools division Plant & Machinery includes 7 items of PPE identified as
surplus and for disposal, the net block of which is Rs. 16.34 Lakhs .

202
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Agewise details as at the end of current Financial year (Rs. in Lakhs)
Amount in CWIP for a period of
Particulars Less than 1 - 2 years 2 - 3 years more than Total
1 year 3 years
CNC Horizontal Machining Centre - - - - -
CNC Cylendrical Grinding Machine - - - - -
Construction of New Hanger - - - 11.59 11.59
Diesel Generator - - - - -
Projects in progress - - 110.00 209.70 319.70
- - 110.00 221.29 331.29

Agewise details as at the end of previous Financial year

Amount in CWIP for a period of
Particulars Less than 1 - 2 years 2 - 3 years more than Total
1 year 3 years
CNC Horizontal Machining Centre - - - - -
CNC Cylendrical Grinding Machine - -- - - -
Construction of New Hanger - - 11.59 - 11.59
Projects temporarily suspended 16.21 - - - 16.21
Projects in progress - 110.00 - 274.70 384.70
16.21 110.00 11.59 274.70 412.50
Details of CWIP completion schedule as at the end of current financial year:
For Capital Work in Progress, where completion is overdue or has exceeded its cost compared to its original plan
To be completed in
CWIP Less than 1 - 2 years 2 - 3 years More than
1 year 3 years
Plant and Machinery - 110.00 - -
HMT CNC Horizantal Machining 170.00 - - -
Centre-HMC 1000
HMT CNC Lathe Stallion 200 UL 38.98 - - -
Rexroth Make External Gear Pump 0.72 - - -
209.70 110.00 - -
Details of CWIP completion schedule as at the end of previous financial year:
For Capital Work in Progress, where completion is overdue or has exceeded its cost compared to its original
plan
To be completed in
CWIP Less than 1 - 2 years 2 - 3 years More than
1 year 3 years
Plant and Machinery 110.00 - -
HMT CNC Horizantal Machining 170.00 - - -
Centre-HMC 1000
HMT CNC Lathe Stallion 200 UL 38.98 - - -
Rexroth Make External Gear Pump 0.72 - - 65.00
209.70 110.00 - 65.00

203
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Land & Land
Particulars Buildings Total
Development
3B. INVESTMENT PROPERTY
Gross carrying value
Opening balance at 1 April 2022 18.24 1,471.14 1,489.38
Additions - - -
Less: Deductions/adjustments/transfer to PPE 0.13 - 0.13
Closing balance at 31 March 2023 18.11 1,471.14 1,489.25
Additions -
Less: Deductions/adjustments/transfer to PPE - - -
Closing balance at 31 March 2024 18.11 1,471.14 1,489.25
-
Depreciation and impairment -
Opening balance at 1 April 2022 - 1,280.94 1,280.94
Depreciation - 20.15 20.15
Less: Deductions/adjustments - - -
Closing balance at 31 March 2023 - 1,301.09 1,301.09
Depreciation - 19.36 19.36
Less: Deductions/adjustments - - -
Closing balance at 31 March 2024 - 1,320.45 1,320.45

Net carring value

at 31 March 2024 18.11 150.69 168.80
at 31 March 2023 18.11 170.05 188.16

Additional Information:
i) The Company has classified certain land & building as investment property which is not a owner occupied property
ii) The Company has not obtained any fair valuation of the investment property from independent valuer. However, the
based on the guidance value, the fair value of the investment property as at March 31, 2024 is Rs.4,86,099.62 lakhs
(previous year Rs.2,80,183.78 lakhs).
iii) Land:
(a) The Company is in possession of land located at Pinjore, Kalamassery and Hyderabad gifted by the respective State
Governments admeasuring 382.54 acres, 209.83 acres and 660.75 acres respectively, nominally valued at Re.1/- each.
(b) In respect of land at Hyderabad, an area admeasuring 28.40 acres was leased to various Government Departments at
Hyderabad. Pending registration of transfer, the Company has agreed to release 14.20 acres of land in exchange for 14.20
acres of land under an exchange agreement with a State Public Sector Undertaking. The Company has also leased 1,000 sq.
yards of land, for which lease deed was executed and agreed to release another two acres of land to Telangana (formerly
called as Andhra Pradesh) Postal Department in Hyderabad, the execution of which is pending. The Company has obtained
stay from the Andhra Pradesh High Court, against repossession of 106 acres and 35 guntas of land by the Government of
Telangana (formerly called as Government of Andhra Pradesh). No finality has been reached on the proposal for surrender
of 300 acres of land owned by the Company at Hyderabad, to the Government of Telangana (formerly called as Government
of Andhra Pradesh), in lieu of payment of part sale consideration and issue of marketable title for the balance land.

204
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Additional Information: (Rs. in Lakhs)

Information regarding income and expenditure of Investment property
31-Mar-24 31-Mar-23
Rental income derived from investment properties 389.82 388.52
Direct operating expenses (including repairs and maintenance) generating rental (312.89) (355.66)
income
Direct operating expenses (including repairs and maintenance) that did not generate (2.54) (2.47)
rental income
Profit arising from investment properties before depreciation and indirect expenses 74.39 30.39
Less – Depreciation (19.36) (20.15)
Profit arising from investment properties before indirect expenses 55.03 10.24

3C. INTANGIBLE ASSET (Rs. in lakhs)

Particulars Intangible assets Total

Gross carrying value

Opening balance at 1 April 2022 - 1,494.48
Additions /(deletions) - (1,406.12)
Closing balance at 31 March 2023 - 88.36
Additions /(deletions) -
Closing balance at 31 March 2024 - 88.36

Amortisation and impairment

Opening balance at 1 April 2022 - 510.19
Amortisation - 140.61
Additions /(deletions) - (562.44)
Closing balance at 31 March 2023 - 88.36
Amortisation -
Additions /(deletions) - -
Closing balance at 31 March 2024 - -

Net carrying value

at 31 March 2024 - -
at 31 March 2023 - -

Net carrying value 31-03-2024 31-03-2023

Intangible Assets - -

205
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

3D Non Current Assets Held for Sale (Rs. In lakhs)
Particulars 31-Mar-24 31-Mar-23
Land and Land Development 24.13 24.13
Buildings 272.02 272.02
Total 296.15 296.15

Additional Information:
HMT Ltd
(a) The Company owning 5.80 acres of land at Bangalore which is classified as Assets Held for Sale, is
pending for hearing with the Hon'ble Supreme Court of India due to Government of Karnataka filing an
Interlocutory Application (IA) during the year 2020-21. The same shall be dealt upon final outcome of the
case.
(b) In line with the approval of Government of India, the Immovable Assets of HMT Watches Ltd (under
closure) have transferred to HMT Limited at the book value of Rs.296.06 lakhs during the year 2022-23,
the rights of transfer of immovable assets have been assumed by the Government and HMT Limited is
the custodian of these properties till their disposal and ensure the transfer of the sale proceeds to the
Administrative Ministry after deduction of applicable expenses and taxes.
(c) The Company is in possession of gift land located at Bangalore admeasuring 89.74 acres of which 7 acres
of land has been encroached upon and the matter has been taken up with the Govt. of Karnataka to shift
the un-authorised occupants.
(d) The Company has allowed possession of land measuring 45.622 acres and received entire sale
consideration of Rs.7202.10 lakhs and is pending for registration.
(e) The sale proceeds from the above stated land should be transferred to Government of India after incurring
applicable taxes.

206
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
Financial assets
4. Investments
Investments In Equity Instruments
Investments at fair value through Other Comprehensive Income
(FVTOCI)
Unquoted equity shares (fully paid)

30,00,000 (Previous year: 30,00,000) Equity Shares of 1 Naira each - -

fully paid up in Nigeria Machine Tools Ltd, Nigeria
Total FVTOCI investments - -
Investment in Equity Instruments of Associates and Joint Venture
Investments in Joint Venture
1,50,000 (Previous year: 1,50,000) Equity shares of Rs.10 each fully 18.20 18.77
paid up in Sudmo HMT Process Engineers (India) Ltd., Bangalore
Investments in Associates
20,84,050 (Previous year: 20,84,050) Equity Shares of Rs.1 each fully - -
paid up in Gujarat State Machine Tools Corporation Ltd., Bhavnagar
Total Investment in Equity instruments in Associate and Joint 18.20 18.77
Venture
Total Investments 18.20 18.77
Current - -
Non Current 18.20 18.77
Agrgregate amount of quoted investments - -
Aggregate amount of unquoted investments 18.20 18.77
Aggregate amount of impairment in value of investments - -
5. Inventories

Raw Materials and Components 2,828.46 2,535.50

Material and Components in Transit 9.37 22.91
Work-in-Progress 4,797.63 4,427.11
Finished Goods 3,033.59 3,549.77
Stock in Trade 818.10 978.59
Stores and Spares 1,452.56 1,432.01
Tools and Instruments 277.98 245.82
Scrap 65.05 95.97
13,282.74 13,287.68
Less: Provision for Non-moving Inventories 1,681.10 1,507.31
11,601.64 11,780.37

207
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
6. Trade Receivables
Secured, considered good - -
Unsecured, considered good 13,389.87 18,577.42
Doubtful 17,101.78 17,854.50
30,491.65 36,431.92
Allowance for doubtful debts
Unsecured, considered doubtful 17,101.78 17,854.50
13,389.87 18,577.42
No trade or other receivable are due from directors or other officers of the Company either severally or jointly
with any other person nor any trade or other receivable are due from firms or private companies respectively
in which any director is a partner, a director or a member.
6A Trade Receivables Agewise details
As at the end of current financial year.
Outstanding for the following periods from due date of
payment
Particulars Total
Less than 6 months - More than
1 - 2 years 2 - 3 years
6 months 1 year 3 years
Undisputed - Considered good 4,307.72 1,355.94 3,152.04 1,283.78 3,290.39 13,389.87
Undisputed - Considered doubtful - 1.26 34.15 144.96 9,404.33 9,584.70
Disputed - Considered good - - - - - -
Disputed - Considered doubtful - - - - 7,517.08 7,517.08
4,307.72 1,357.20 3,186.19 1,428.74 20,211.80 30,491.65

As at the end of previous financial year.

Outstanding for the following periods from due date of
payment
Particulars Total
Less than 6 months - More than
1 - 2 years 2 - 3 years
6 months 1 year 3 years
Undisputed - Considered good 11,145.65 1,314.10 2,109.08 1,252.95 2,755.64 18,577.42
Undisputed - Considered doubtful 0.14 18.24 31.21 121.41 7,843.67 8,014.67
Disputed - Considered good - - - - - -
Disputed - Considered doubtful - - - - 9,839.83 9,839.83
11,145.79 1,332.34 2,140.29 1,374.36 20,439.14 36,431.92

208
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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
7. Cash and Cash equivalents
Current accounts * 1,967.29 1,879.63
Deposits with maturity three months or less 1,244.53 7,671.39
Cash and Cheques on hand 38.52 2.44
3,250.34 9,553.46
*Includes Rs.9.79 lakhs in HMT Ltd, payable to minority Shareholders
of HMT Bearings Ltd (in Escrow Account) and Rs.72.59 lakhs in HMT
Machine Tools Ltd in respect of SURGE (Rs.49.92 lakhs in Escrow
Account and Rs.22.67 lakhs in current account) as on 31.03.2024.
8. Banks balances other than Cash and Cash equivalents
Deposits with maturity more than three months but less than twelve 20,347.49 15,558.64
months
Deposits having remaining maturity less than twelve months 1,113.99 391.34
21,461.48 15,949.98

9. Other Financial Assets

Non-Current
Deposits with Banks exceeding twelve months of maturity 121.09 1,389.13
Margin Money with Banks 301.17 297.57
Interest accrued & due 6.95 27.16
429.21 1,713.86
Current
Interest accrued & due on Bank Deposits 444.99 361.96
444.99 361.96

10. Current Tax Assets (net)

Advance tax/TDS receivables* 817.05 1,652.72
Less: Current Tax provision 69.08 75.58
747.97 1,577.14
* Primarily consists of TDS receivables

11. Other Assets

Non-Current
Deposits 384.18 376.21
Capital Advances 1.97 1.97
Less: Allowance for Doubtful Advances 1.97 1.97
Total Non Current Assets 384.18 376.21

209
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
Current
Advances and other receivables
Advances recoverable in cash or in kind

Unsecured
Considered Good # 3,780.28 4,416.72
Considered Doubtful 1,124.99 1,133.68
4,905.27 5,550.40
Less: Allowance for Doubtful Advances 1,124.99 1,133.68
3,780.28 4,416.72

Interest on Trade Receivable 8,217.64 5,924.75

Less: Allowance for interest on Trade Receivable 8,217.64 5,924.75
- -

Deposits 192.47 183.17

Total Current Assets 3,972.75 4,599.89

Total Other Assets 4,356.93 4,976.10

Additional Information:
#includes
(a) 446.02 acres of land at Pinjore, Haryana has been transferred to HSIIDC (412.69 acres) and Indian
Railways (33.33 acres) during the year 2019-20 and as on 31.3.2024 an amount of Rs.4.99 lakhs
(Rs.4.99 lakhs Previous year) is due from HSIIDC.
(b) Advances to Joint Ventures Rs.3.40 lakhs (Rs.8.70 lakhs Previous year)

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Particulars As at 31-Mar-24 As at 31-Mar-23

12 Equity Share Capital

No Amount No Amount
Authorised Share Capital:
Equity shares of Rs.10 each 1,23,00,00,000 1,23,000.00 1,23,00,00,000 1,23,000.00

1,23,00,00,000 1,23,000.00 1,23,00,00,000.00 1,23,000.00

Issued, Subscribed & Paid up:

Equity shares of Rs.10 each
At the beginning of the year 35,56,01,640 35,560.16 35,56,01,640 35,560.16
Issued during the year - - - -
Reduction during the year - - - -
At the end of the year 35,56,01,640 35,560.16 35,56,01,640 35,560.16

Additional Information:
1 Equity Shares:
The Company has only one class of equity shares having par value of Rs.10/- per share. Each holder of equity
shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the company, after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.

2 Details of shareholders holding more than 5% shares in the Company:

Name of the Shareholder No of shares Percentage No of shares Percentage
Equity Shares:
Hon'ble President of India 27,95,66,626 78.62% 27,95,66,626 78.62%
Special National Investment 6,75,38,614 18.99% 6,75,38,614 18.99%
Fund

3 Shares held by the promoters' at the end of the year

No. of Share at the No. of Share at
% change during
Promoter Name begining of the the end of the % of total Shares
the year
year year
Hon'ble President of India 27,95,66,626 27,95,66,626 78.62% -

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
13. Other Equity:

i) Capital Reserve:
As per last Balance Sheet 2,270.82 2,270.82

ii) General Reserve:

As per last Balance Sheet 16,600.97 16,600.97
Add:
Transferred from Statement of Profit & Loss - -
16,600.97 16,600.97

iii) Retained Earnings:

As per last Balance Sheet (4,77,696.35) (4,65,406.06)
Adjustments:
Dividend distribution tax - -
Amount transferred from Statement of Profit & Loss (net of 2,55,076.26 (12,290.29)
share to non controlling interest)
(2,22,620.09) (4,77,696.35)

iv) FVTOCI Reserve:

As per last Balance Sheet (7,049.17) (7,041.71)
Adjutments:
- Reclassification of of acturial gain/losses on defined benefit 34.12 (7.46)
plans
(7,015.05) (7,049.17)
Total (2,10,763.35) (4,65,873.73)

Additional Information:
Nature and Purpose of Reserves
Capital Reserve is towards difference in the face value of Equity Shares held by Governor of Andhra Pradesh
and Government of India in Praga Tools Ltd, which has been merged with HMT Machine Tools Ltd and the
consideration of Re.1/- to be paid to each of them as per the Scheme of Merger sanctioned by BIFR.

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
14.Borrowings
Current
Secured
Cash Credit 3,912.95 4,290.79
3,912.95 4,290.79
Unsecured
Current maturities of long-term Debts - -
Loan from Govt. of India (Defaulted) # 99,010.81 99,010.81
Loan from Govt. of India (*) - 2,69,378.75
Interest free Loan from Governemnt of IndIa (Defaulted) (refer foot 13.74 13.74
note No.2 below)
99,024.55 3,68,403.30

Total Current borrowings 1,02,937.50 3,72,694.09

Aggregate Secured loans 3,912.95 4,290.79

Aggregate Unsecured loans 99,024.55 3,68,403.30

# Period and amount of default (Ref. Note No.64)

1. Cash Credits as referred to above, are repayable on demand and are secured by hypothecation of entire
current assets of the Company including inventories and Trade Receivables, by first charge and collateral
security by way of equitable mortgage by deposit of title deed of the immovable property of the Company
ranking pari passu inter-se the participating banks.
2. During the FY 2018-19 the Company has received Rs.13.74 lakhs towards reimbursement of consultancy
charges paid to IIM, Bangalore for Financial & Strategic Review of consolidation & restructuring plan of
the Company. However, the Company is in process of obtaining clarification from Department of Heavy
Industry whether the same is grant or loan. Based on the clarification the same will be treated as income
or borrowing in the year of confirmation from department of Heavy Industries.
(*) Loan from Government of India including interest of Rs. 2,69,378.75 Lakhs in the books of account of HMT
Watches Ltd have been waived off by Government of India and the same has been written back in the books
during the year.

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23

15. Non Current Financial Liability - -

16. Provision for employee benefits

Non Current
Gratuity 2,088.96 2,444.91
Earned Leave Encashment 1,122.86 1,155.81
Settlement Allowance 165.92 188.98
Provident Fund 59.40 75.13
3,437.14 3,864.83
Current
Gratuity 815.81 860.60
Earned Leave Encashment 315.33 303.84
Settlement Allowance 45.88 45.42
Wage and Salary Revision arrears (1992-1995) 1,420.15 1,467.45
2,597.17 2,677.31

17. Deferred Tax Liability(Net)

Deferred Tax Liability 121.62 170.24
Deferred Tax Asset 121.45 127.56
0.17 42.68

18. Trade payables

Total outstanding dues to Micro, Small & Medium Enterprises 670.08 934.50
Total outstanding dues of creditors other than Micro, Small & 8,864.01 7,262.21
Medium Enterprises
Total 9,534.09 8,196.71
18A TradePayable Agewise details
As at the end of current financial year:
Outstanding for the following periods from due
date of payment
Particulars Total
Less than 1 more than
1 - 2 years 2 - 3 years
year 3 years
MSME 445.33 111.81 61.41 51.53 670.08
Others 5,578.30 1,314.29 375.56 1,595.86 8,864.01
Disputed dues - MSME - - - - -
Disputed dues - Others - - - - -
6,023.63 1,426.10 436.97 1,647.39 9,534.09

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

As at the end of previous financial year: (Rs. in lakhs)
Outstanding for the following periods from due
date of payment
Particulars Total
Less than 1 more than
1 - 2 years 2 - 3 years
year 3 years
MSME 737.99 111.73 23.62 61.16 934.50
Others 4,510.07 650.12 720.00 1,382.02 7,262.21
Disputed dues - MSME - - - - -
Disputed dues - Others - - - - -
5,248.06 761.85 743.62 1,443.18 8,196.71

The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available
with the Company is as under:
Particulars 31-Mar-2024 31-Mar-2023
Principal amount due and remaining unpaid 670.08 934.50
Interest due on above and the unpaid interest 72.69 66.98
Interest remaining due and payable in the succeeding year until the dues - -
are actually paid
Interest paid 1.14 2.16
Interest accrued and remaining unpaid at the end of the accounting year. 142.58 127.41
19. Other Financial Liabilities
3.5% Preference Share Capital (Defaulted) 3,686.00 3,686.00
Interest accrued and due on borrowings
Loans from Government of India 53,145.05 46,936.95

Total 56,831.05 50,622.95

3.5% Preference Share Capital

Each Redeemable Preference Shares has a par value of Rs.100/- per share and is redeemable after 3 years.
The preference shares carry a dividend of 3.5% per annum and conversion of cumulative dividend into equity
shares on accrual. The dividend rights are cumulative. The preference shares rank ahead of the equity shares
in the event of a liquidation.
In accordance with the CCEA approval and DHI's directions thereon during January 2016, 3.5% Redeemable
Preference Shares of 4,06,14,000 no's (Rs.40,614.00 lakhs) out of 4,43,00,000 no's of Rs.100/- each
(Rs.44,300.00 lakhs) will be extinguished and set off against the Loans and advances to subsidiaries companies
provided by the Company to HMT Watches Limited, HMT Chinar Watches Limited and HMT Bearings Limited.
For the remaining 3.5% Redeemable Preference Shares the revival Plan sanctioned to the Company vide
sanction No F.No.5.1(1)/2005.PE.X dated 29 March 2007 has specified for redemption of Preference Share
Capital out of sale proceeds of the identified surplus assets of HMT Machine Tools Ltd. Since the sale of
identified assets has not taken place which is pre-condition for redemption, remaining 3.5% Redeemable
Preference Share Capital is not redeemed .

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
20. Other Liabilities
Non Current
Grant from Government of India 47.56 67.91
Grant in Aid 22.80 22.80
70.36 90.71
Current
Revenue received in advance 5,521.60 6,004.33
Advance received against land sale 8,128.74 8,128.74
Accrued expenses 2,195.01 2,535.37
Other liabilities (Employee related liabilities, OSL for expenses, EMD , 43,863.59 43,792.59
Statutory dues etc.,)
Total 59,708.94 60,461.03

21. Current Tax Liabilities

Current Tax provision 559.15 1,180.00
Less: Advance tax/TDS Receivables 482.27 285.34
Total 76.88 894.66

22. Provisions - others

Provision for
Warranty Indirect Taxes and
Particulars Others Total
Claims salary revision
arrears
At 1 April 2023 104.46 1.25 277.06 382.77
Arising during the year 70.47 - - 70.47
Utilised (81.92) - - (81.92)
Unused amounts reversed (0.99) - - (0.99)
At 31 March 2024 92.02 1.25 277.06 370.33
Current 92.02 1.25 277.06 370.33
At 1 April 2022 101.84 111.65 277.31 490.80
Arising during the year 68.52 - - 68.52
Utilised (21.64) (110.40) (0.25) (132.29)
Unused amounts reversed (44.26) - - (44.26)
At 31 March 2023 104.46 1.25 277.06 382.77
Current 104.46 1.25 277.06 382.77

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
23. Revenue from operations
Sale of Products
Food Processing Machinery 724.51 575.12
Watches 1,158.66 726.22
Spares and Accessories 108.69 151.37
Revenue from Powder Project 2,679.58 3,679.63
4,671.44 5,132.34
Sale of Services
Sundry Jobs and Miscellaneous Sales 79.97 12.21
Packing / Forwarding charges - 14.70
79.97 26.91
Total 4,751.41 5,159.25
Machine Tools
Sale of Products 8,161.77 11,226.09
Accessories 1,137.34 1,736.58
9,299.11 12,962.67
Sale of Services
Sale of Services 275.16 324.83
Sundry Jobs and Miscellaneous Sales 223.07 463.03
Packing / Forwarding charges 31.31 55.63
529.54 843.49
Total 9,828.65 13,806.16

Exports
Sales & Commission 1,108.71 127.97
Technical Services 12.90 -
Project Sales & Services 637.01 1,287.10
Export Assistance - 0.38
1,758.62 1,415.45
Revenue from Operations 16,338.68 20,380.86

24. Other income

Interest Income
Interest income on Bank Deposits 1,499.24 933.35
Interest from Dealers/Others 36.73 7.22

1,535.97 940.57

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
Other Income
Recoveries from Staff/Others 422.92 410.48
Rent Received 2,379.71 2,539.39
Profit on Sale of Property, Plant and Equipment 23.09 81.75
Government Grant 20.35 45.76
Provisions Withdrawn 524.83 691.03
Amortisation of Govt. Grant - 11.13
Other non operating Income 490.52 744.30
3,861.42 4,523.84
Total Other Income 5,397.39 5,464.41

25 Cost of Materials Consumed

Raw materials and Components
Inventory at the beginning of the year 2,535.50 2,521.42
Add: Purchases 7,713.49 7,839.97
10,248.99 10,361.39
Less: inventory at the end of the year 2,828.46 2,535.50
Cost of raw material and components consumed 7,420.53 7,825.89
Consumption of Stores, Spares, Tools & Packing Materials 1,518.50 1,505.69
Total raw materials and components consumed 8,939.03 9,331.58

Particulars of Materials Consumed

Steel 319.18 404.05
Non-ferrous Metals 125.38 2.63
Ferrous Castings 557.24 810.60
Non-ferrous Castings 45.52 53.30
Forgings 36.75 26.95
Standard parts & components 5,073.00 6,182.55
Others 1,263.46 345.81
Total 7,420.53 7,825.89

26. Purchase of Stock in Trade

Purchases of Stock in Trade 536.24 1,136.43
536.24 1,136.43

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
27. Changes in Inventory
Finished Goods
Inventory at the beginning of the year 3,549.77 5,952.33
Less: inventory at the end of the year 3,033.59 3,549.77
Changes in Inventory 516.18 2,402.56
Work in Progress
Inventory at the beginning of the year 4,427.11 5,256.38
Less: inventory at the end of the year 4,797.63 4,427.11
Changes in Inventory (370.52) 829.27
Stock in Trade
Inventory at the beginning of the year 978.59 465.43
Less: inventory at the end of the year 818.10 978.59
Changes in Inventory 160.49 -513.16
Scrap
Inventory at the beginning of the year 95.97 174.13
Less: inventory at the end of the year 65.05 95.97
Changes in Inventory 30.92 78.16
Total 337.07 2,796.83

28. Employee benefits expense

Salaries,Wages and Bonus 5,414.70 5,495.49
House Rent Allowance 102.44 127.31
Gratuity 399.36 435.19
Contribution to PF & FPS 539.44 577.42
Deposit Linked Insurance 47.63 38.07
Contribution to ESI 3.77 4.00
Welfare Expenses 1,074.83 1,069.24
7,582.17 7,746.72

29. Depreciation and amortization

Depreciation of Tangible Assets 808.52 771.89
Depreciation on Investment Properties 19.36 20.15
Amortisation of Intangible Assets - 140.61
827.88 932.65

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
30. Finance costs
Interest Expense
Government of India Loans 6,208.10 6,208.10
Interest Expense (GoI Loans) - 11.13
Cash Credit loans from Banks 597.59 680.86
Others 0.01 0.01
Other Borrowing Cost
Discounting Charges 0.31 1.55
Total finance costs 6,806.01 6,901.65

31. Other expenses

Manufacturing Expenses
Power and Fuel 932.51 807.31
Repairs to machinery 26.00 23.80
Provision for Non Moving Inventories 209.04 58.39
Selling & Distribution Expenses
Advertisement and Publicity 22.79 22.18
Carriage outwards 166.04 190.95
Establishment Expenses
Rent 56.65 31.71
Rates and Taxes 1,435.04 1,989.03
Insurance 43.61 45.29
Water and Electricity 449.61 441.00
Repairs to building 35.15 36.96
Printing and Stationery 41.06 44.37
Auditors Remuneration # 9.68 9.95
Provision for Doubtful Debts,Loans and Advances 1,601.29 816.52
Warranty claims 70.47 68.52
Loss sustained by PF Trust 779.47 414.41
Bad Debts 5.46 -
Travelling Expenses 192.60 216.23
Repairs & Maintenance - General 590.23 535.09
Security Charges 488.15 434.32
Casual Labour charages 2,026.59 1,844.31
Corporate Social Responsibility 56.55 60.91
Technology platform "SURGE" expenses 19.27 44.70
Diference in exchange 2.39 4.80
Training expenses - Skill Development 3.32 6.30
Other Expenses 1,044.60 1,007.35
10,307.57 9,154.40

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
#As auditor 6.14 6.00
For taxation matters 2.03 2.29
Cost audit fee & expenses 1.26 1.24
For other services 0.25 0.42
9.68 9.95
Corporate Social Responsibility
As per section 135 of the Companies Act, 2013, read with gudelines issued by DPE, the Company is required
to spend, in every financial year, at least two percent of the average net profits of the Company made during
the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses
for the year are as under:
i) Amount required to spend during the year 56.55 60.91
ii) Shortfall amount from the previous year 42.71 41.83
99.26 102.74
iii) Amount spent during the year
- on the project in Health and Nutrition Sector- supply of
> Water Purifier & health care products to Govt. Schools at Yadgir - 0.80
District
> HB Testing Machines and HBD Testing Strips, Yadgir District - 14.67
> Ambulence to KC General Hospital, Bangalore - 21.19
> Oxigen Cylinder to " Mandya Institute of Medical Sciences, Mandya - 4.58
> Mid day meal plan, the Akshya Patra Foundation, Ajmer - 5.00
> Reusable Sanitary Napkins to Women, Yadgir District 0.75 10.90
> Artificial Aids and Assistive Divices to Divyangjans/Senior Citizens/
Disabled persons through Alimico, Bangalore 20.70 2.30
> Artificial Aids and Assistive Divices to Divyangjans/Senior Citizens/
Disabled persons through Alimico, Chikkamangaluru 15.00 -
> Musical Instruments, Bilnd walking sticks etc. to M/s Bless
Society of Rural and Urban Development & M/s Swavalamban
Angavikala Seva Charitable Trust, Bangalore 5.00 -
> Administrative expenses 0.44 -
- Transfer to PM National Relief Fund 28.75 0.59
Total amount spent during the year 70.64 60.03
iv) CSR Reserve (amount c/f i.e. shortfall at the end of the year 28.62 42.71
{inclusive of administrative expenses}
Reasons for Shortfall: The Company has identified certain CSR
ongoing activities in the area ofHealth , Nutrition, Education etc as
referred below:
a)Reusable Sanitary Napkins to Women, Aritificial Aids and Assistive devises
b)Supply of Blazer / Jackets to Girl Students in Karnataka Public School, Bangalore
c) Supply of Cardiac Ambulance to Government Medical College, Aurangabad

221
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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
32. Jobs Done for Internal Use
Shop manufactured Special Tools (298.91) (391.49)
(298.91) (391.49)
33. Exceptional Items
Reversal of differential Depreciation charged against NUM and SAP - 83.83
- 83.83
34. Interest in joint venture
The Company has a 50% interest in SUDMO- HMT Process Engineers (India) Limited, a joint venture
involved in marketing of Food Processing Machines. The Company’s interest in SUDMO- HMT Process
Engineers (India) Limited is accounted for using the equity method in the consolidated financial statements.
Summarised financial information of the joint venture, based on its Ind-AS financial statements, and
reconciliation with the carrying amount of the investment in consolidated financial statements are set
out below
31-Mar-24 31-Mar-23

Current assets, including cash and cash equivalents 39.92 46.36

Current liabilities, including tax payable (3.52) (8.82)
Equity 36.40 37.54
Proportion of the Company’s ownership 0.50 0.50
Carrying amount of the investment 18.20 18.77

Summarised statement of profit and loss of the SUDMO- HMT Process Engineers (India) Limited:

Revenue 2.79 2.49

Finance cost - -
Other expense (3.93) (4.06)
Profit before tax (1.14) (1.57)
Income tax expense - -
Profit for the year (continuing operations) (1.14) (1.57)
Total comprehensive income for the year (continuing operations) (1.14) (1.57)
Company’s share of profit/(loss) for the year (0.57) (0.79)

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
Year ended Year ended
Particulars
31-Mar-24 31-Mar-23
35. Income Tax
The major components of income tax expense for the years ended 31 March 2024 and 31 March 2023
are:

Continuing Operations
Statement of profit and loss
Profit or loss section

Current income tax:

Current income tax charge 458.75 1,186.50
Deferred tax:
Relating to origination and reversal of temporary differences (33.93) 17.38
Adjustment of Tax :
Relating to earlier years (718.60) (408.60)
Income tax expense reported in the statement of profit and (293.78) 795.28
loss

OCI section
Deferred tax related to items recognised in OCI during in the
year

Discontinued Operations
Current income Tax 84,986.12 -
Adjustment of Tax relating to earlier years - -
84,986.12 -
OCI section
Deferred tax related to items recognised in OCI during in the
year
Net loss/(gain) on remeasurements of defined benefit plans (8.58) 6.97
Income tax charged to OCI (8.58) 6.97

Additional Information:
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority.
Reconciliaiton of tax expense has not furnish ed by the subsidiary companies. Accordingly same has not been
furnished.

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

36. Discontinued Operations
a) As per the CCEA Approval in FY 2015-16 it was decided that HMT Chinar Watches Ltd, HMT Watches
Ltd and HMT Bearings Ltd operations were closed. Consequently, dissolution order have been passed for
HMT Chinar Watches Ltd and HMT Bearings Ltd vide order dated 10th March, 2022 and 20th April, 2022
respectively.
b) Accordingly, the results below consists of only HMT Watches Ltd.
The results of Discontinued Operations for the year are presented below: (Rs in lakhs)
Particulars Year ended Year ended
31-Mar-24 31-Mar-23
Revenue
Revenue from Operations - -
Other income 61.21 132.92
Expenses
Material Consumption, purchase of stock and changes in inventory - -
Employee Benefit Expenses - -
Depreciation - -
Other Expenses 116.80 140.51
Finance costs - -
Profit/(loss)before exceptional items and tax from a discontinued (55.59) (7.59)
operation
Exceptional items 193.04
Write back of GOI Liabilities 2,69,378.75 -
Grant received from Goi 83,747.00 -
Profit/(loss) before tax from a discontinued operation 3,53,125.75 185.45
Tax (expenses)/income:
Related to current pre-tax profit/(loss) 84,986.12 -
Related to measurement to fair value less costs of disposal (deferred
tax)
Profit/(loss) for the year from a discontinued operation 2,68,139.63 185.45
The classification of Non Current Assets of Discontinued Operations
are as follows
Assets
Property, plant and equipment - -
Investment Property - -
Non Current Assets Held for Sale - -
Total Non Current Assets - -
The net cash flows incurred as follows:
Operating (1,363.99) (852.01)
Investing 59.68 137.26
Financing - (14.28)
Net cash (outflow)/inflow (1,304.31) (729.03)
Earnings per share:
Basic, profit/(loss) for the year from discontinued operation 75.39 0.05
Diluted, profit/(loss) for the year from discontinued operation 75.39 0.05

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
37. Contingent Liabilities
1) Claims against the company not acknowledged as debt;
Details
a) Tax related claims pending in appeal
i) Excise Duty - 32.31
ii) Sales Tax 213.55 267.19
iii) Property Tax 8,080.05 4,945.11
iv) Income Tax 37.92 37.92
b) Non receipt of related Forms against levy of concessional Sales Tax 54.40 54.40
c) Employee related claims relating to Lockouts, Back wages, Incentive & 1,772.17 1,592.15
Annual bonus, etc., pending adjudication, to the extent ascertainable
d) Various cases relating to defective product, accident causing injuries to 14,693.67 13,829.15
third parties, claims relating to supply of materials etc.
e) Various legal cases relating to employees and other contingent liabilities 9,896.80 9,896.80
pertaning to HMT Watches Ltd (Ref Note No. 60)
f) Guarantees and Counter Guarantees and LCs issued [(including Rs.8045 11,188.27 12,084.58
Lakhs and Rs.9454 lakhs (previous year) against Corporte Guarantee of
Rs.12272 lakhs issued to HMT Machine Tools Ltd)]
g) Liability towards interest, penalty/damages as per 14B of Employees 23.89 23.89
Provident Fund and Misc. provision Act, 1952
h) Disputed Lease Rental in respect of premises occupied by the Company 311.77 311.77
up to April, 2010 at Jeevan Tara Building belongs to LIC of India, New
Delhi.
i) Income tax deducted at source demand under the traces software for 79.12 79.40
short and non remittances of tax deduction at source – matter under
examination.
j) Estimated amount of contracts remaining to be executed on capital - 65.00
account and not provided for
k) Stock Exchanges have levied penalties to Company for the certain Non-
Compliances under the SEBI (LODR) Regulations, 2015 like Composition
of Board of Directors, Committees, delay in submission of accounts
etc. As per the circulars of Stock Exchanges, listed entities are required
to comply with the provisions of the Exchange circular before filing 508.47 394.77
the waiver applications to the Exchange. Accordingly, in some of the
cases, Company has got waiver of penalties from stock exchanges.
The Company has again requested for waiver of penalties from Stock
Exchanges. Total penalty amount (approx.):

225
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars 31-Mar-24 31-Mar-23
38. Other Disclosures
(a) The GOI had released a Plan Assistance of Rs. 200 lakhs to the Company during March 2007 to meet the
Capital Expenditure of HMT Watches Ltd, the wholly owned Subsidiary, in the form of Equity (Rs.100 lakhs)
& Loan (Rs.100 lakhs). In view of the non utilisation of the funds by the Subsidiary within the stipulated
period, GOI had instructed the Company during December 2009 for refund of the total Plan Assistance of
Rs. 200 lakhs. Accordingly, the Company has refunded the Loan amount of Rs. 100 lakhs to GOI during
February 2010. However, with regard to refund of Equity portion, since the Company has already issued
10,00,000 Equity Shares of Rs. 10/- each (Rs. 100 lakhs) in favour of President of India during April 2007,
as per the terms of GOI sanction, the same could not be carried out, as it would amount to reduction in
Share Capital requiring the approval of the Share Holders and completion of other statutory formalities
as per the Companies Act and applicable rules in this regard, and the same has been communicated to
GOI. Further instructions are awaited from GOI on the same.
(b) Other Liabilities Includes an advance received against sale of land represents Rs.926.64 lakhs from M/s
Raman Research Insiitute (RRI) towards sale of land and buildings at Bangalore and Rs.7202.10 lakhs
(including TDS) from the Government of Uttarkhand (GOUK) the value of the land has been included
under Non-current assets held for sale. Though the Company has executed an Agreement to sell and
possession of land given to the purchaser in respect of RRI and part possession of land to the purchaser in
respect of GOUK, the transaction has not been recongised as sale pending approval from the Concerned
Authorities for execution of Sale Deed.

39. Preference Share Capital

The Government of India while approving the Revival Plan of HMT Machine Tools Ltd (HMT-MTL), a
Subsidiary Company, during March 2007, had accorded sanction for cash infusion of Rs. 44300 lakhs in
the form of 3.5% Preference Share Capital which was routed through the Company for investment in
the Preference Share Capital in the Subsidiary, to be redeemed after 3 years i.e. 31.3.2010 out of sale of
surplus immovable Properties of HMT-MTL.
However, as per the CCEA approval 40614000 No. of Shares will be extinguished out of 44300000 Nos. of
Rs.100/- each, leaving a balance shares of 36,86,000 of Rs.100/- each which is proposed to be redeemed
upon sale of immovable property.
Arrears of fixed cumulative dividends on preference shares (including 5,607.63 5,607.63
tax thereon) payable to Government of India

40. Inventories include

Usable slow/non moving and surplus stores and materials/work in 405.47 818.08
progress and Finished goods

41.Trade Receivables include

Dues towards erection and commissioning for a period exceeding one 243.41 856.14
year
Amounts withheld towards liquidated damages and interest on - -
advances claimed/if claimed on delayed supplies.

226
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
Dues from parties against whom cases have been filed before various - -
Courts which are pending.
No provision has been made towards outstandings for more than - 169.44
three years, which are not supported by specific confirmations from
customers in respect of HMT (I) Ltd

42. Advances include

Amounts recoverable from employees advances, bonus etc pending 2.54 2.75
adjudication / negotiations
Adhoc payments to employees towards Wage/Salary, DA arrears, if any, 148.40 177.95
pending adjustment & provision to this extent has been made in the
accounts

43. Contingent Asset

Debts written off in the past, but action of recovery proceedings is 138.98 138.98
being continued before the courts

44. Related Party Transactions & Disclosure u/s 186 of Companies Act 2013
Name of the Related Party Relationship
Mr. Pankaj Gupta (w.e.f. 25.08.2022 upto 24.11.2023)
Mr. Rajeev Singh (w.e.f. 30.12.2023 upto 08.03.2024)
Mr. Krishnaswami Ravishankar (w.e.f. 08.03.2024)
Ms. Arti Bhatnagar (w.e.f. 14.02.2023)
Dr. Renuka Mishra (w.e.f. 12.09.2022 upto 04.09.2023) Key Managerial Persons
Ms. Mukta Shekhar (w.e.f. 04.09.2023) (KMP)
Ms. Rita Saxena (w.e.f 25.08.2023)
Mr. S. Kishor Kumar
Ms. Kamna Mehta (upto 09.11.2023)
Ms. Aparna R (w.e.f. 10.11.2023)
Transactions with Key Managerial Personnel
Compensation of key management personnel of the Company 31-Mar-24 31-Mar-23
Mr. S.Kishor Kumar 15.87 14.63
Ms. Kamna Mehta 6.84 10.56
Ms. Aparna R 5.58 -
28.29 25.19
Directors sitting fees
Mr. Vishwehwar Bhatt - 0.66
Mr. Ramji Lal - 0.91
- 1.57

227
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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

(Rs. in lakhs)
As at As at
Particulars
31-Mar-24 31-Mar-23
Related Party Transactions with Subsidiaries
Transactions and balance with its own subsidiaries are eliminated in consolidation.
Related Party Transactions with Joint Venture
Sudmo HMT Process Engineers (India) Ltd
Advance (Dr/Cr)

Opening Balance 8.70 4.83

Advance given (Net) 3.40 3.87
Advance taken (Net) - -
Transfers (8.70) -
Closing Balance 3.40 8.70

45. Fair Values

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial
instruments, other than those with carrying amounts that are reasonable approximations of fair values
Carrying amount Fair value
31-Mar-24 31-Mar-24 31-Mar-23 31-Mar-23

Financial assets
FVTOCI financial investments - - - -
Total - - - -

Financial liabilities
Borrowings 38,765.76 3,08,522.35 38,765.76 3,08,522.35
Interest Free Government of India 64,171.74 64,171.74 64,171.74 64,171.74
Loan
Total 1,02,937.50 3,72,694.09 1,02,937.50 3,72,694.09

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts
and other current liabilities approximate their carrying amounts largely due to the short-term maturities of
these instruments. The management also assessed that the governmnet of India loan excluding Interest Free
Government of India Loan approximate their carrying amounts as transaction costs are not levied.
The Fair Value of Interest Free Government of India Loan is arrived by discounting the loan amount for a
repayment period of 5 years. For the purpose of calculation 8% is considered as the effective rate of Interest.
The Company has defaulted in 3.5% redeemable preference shares which has been matured for redemption
and hence no fair valuation has been made in the accounts.

228
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

46. Fair value Hirarchy

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together
with a quantitative sensitivity analysis as at 31 March 2024 and 31 March 2023 is as shown below:

Quantitative disclosures fair value measurement hierarchy for assets as at 31 March 2024 (Rs. In lakhs)
Fair value measurement using
Significant Significant
Quoted prices in
Total observable unobservable
active markets
inputs inputs
(Level 1) (Level 2) (Level 3)
Date of Valuation
valuation technique
Assets measured at fair value:
FVTOCI financial investments:
Unquoted equity shares
Nigeria Machine Tools Limited - -

229
Assets for which fair values are
disclosed
Investment properties
Land * 31-Mar-24 Circle rate 4,86,099.56 4,86,099.56
Financial Liability
Interest Free Government of India 31-Mar-24 64,171.74 64,171.74
Loan
Annual Report 2023 - 24
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
Quantitative disclosures fair value measurement hierarchy for assets as at 31 March 2023 (Rs. in lakhs)
Fair value measurement using
Significant Significant
Quoted prices in
Total observable unobservable
active markets
inputs inputs
(Level 1) (Level 2) (Level 3)
Date of Valuation
valuation technique
Assets measured at fair value:
FVTOCI financial investments:
Unquoted equity shares
Nigeria Machine Tools Limited - -

Assets for which fair values are

disclosed

230
Investment properties
Land * 31-Mar-23 Circle rate 2,80,183.78 2,80,183.78
Financial Liability
Interest Free Government of India 31-Mar-23 8% Effective 64,171.74 64,171.74
Loan Rate of
Interest used

* Based on guidance value

A) Nigeria Machine Tools Ltd is a company incorporated outside India, and as per its latest audited balance sheet dated 31-12-2020
net worth is completly eroded and hence the fair value at Rs. NIL is considered.
Annual Report 2023 - 24
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

47. Earnings per share (EPS) (Rs. In lakhs)

31-Mar-24 31-Mar-23
Profit attributable to equity holders:
Continuing operations (13,007.78) (12,475.74)
Discontinued operation 2,68,084.04 185.45
Profit attributable to equity holders for basic earnings 2,55,076.26 (12,290.29)
Profit attributable to equity holders adjusted for the effect of 2,55,076.26 (12,290.29)
dilution
Weighted average number of Equity shares for basic EPS 35,56,01,640 35,56,01,640
Effect of dilution:
Convertible preference shares - -
Weighted average number of Equity shares adjusted for the effect of 35,56,01,640 35,56,01,640
dilution *
Earnings per share for continuing operations
i) Basic, profit from continuing operations attributable to equity (3.66) (3.51)
holders
ii) Diluted, profit from continuing operations attributable to equity (3.66) (3.51)
holders
Earnings per share for discontinuing operations
i) Basic, profit from discontinuing operations attributable to equity 75.39 0.05
holders
ii) Diluted, profit from discontinuing operations attributable to equity 75.39 0.05
holders
* There have been no other transactions involving Equity shares or potential Equity shares between the
reporting date and the date of authorisation of these financial statements.

231
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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

48. As per Indian Accounting Standard-19 "Employee Benefits". the disclosures as defined
are given below
i) Defined Contribution Plan :
(Rs. in Lakhs)
Particulars Year Ended Year Ended
31 March 2024 31 March 2023

Employer's Contribution to Pension Fund 99.40 114.46

ii) Defined Benefit Plans :

The Company contributes to Provident Fund trust, Gratuity and settlement allowance to the employees which
are defined benefit plans.
The Company [(HMTL) and HMT(I)] has obtained the acturial valuation report from the independent actuary
for its Provident Fund Trust.
a) The principal assumptions used in determining defined benefit obligation of the Company's plan is shown
below
31-Mar-24 31-Mar-23
% %
Discount rate:
Gratuity plan 7.23 7.52
Settlement Allowance 7.23 7.52

Future salary increases:

Gratuity plan 10.00 10.00
Settlement Allowance 10.00 10.00
Gratuity Plan Settlement Allowance
Summary of Demographic Assumptions
31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23
Mortality Rate (as % of IALM (2012-14) 100% 100% 100% 100%
(Mod.) Ult. Mortality Table) {Previous Year
IALM(2012-14) Ult. Mortality Table}
Disability Rate (as % of above mortality rate) 0% 0% 0% to5% 0% to 5%
Withdrawal Rate 1% to 3% 1% to 3% 1% to 3% 1% to 3%
Attrition Rate
Normal Retirement Age*
Average Future Service 18.12 18.67 18.12 18.67
*Note : Age 60 years in case of HMT Limited and HMT(I) Limited.
Age 58 years in case of HMT Machine Tools Limited. However there are no employees in HMT Watches
Ltd.
232
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
48 A. Employee Benefit Obligations
The cost of the defined benefit Gratuity plan and Settlement Allowance and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
A. Gratuity
31 March 2024 changes in the defined benefit obligation and fair value of plan assets (Rs. In lakhs)
Gratuity cost charged to
Remeasurement gains/(losses) in other comprehensive income
profit or loss
Return on Re
Actuarial Actuarial
plan assets measurement
Sub-total changes changes Contributions
Particulars 01-Apr-23 Net (excluding due to Experience Sub-total 31-Mar-24
Service included Benefits arising from arising from by employer
interest amounts asset ceiling adjust included
cost in profit or paid changes in changes in
expense included in (excluding ments in OCI
loss demographic financial
net interest interest
assumptions assumptions
expense) income)
Defined benefit (4,750.50) (205.10) (315.34) (520.44) 822.93 (7.11) - - (31.43) 41.14 2.60 - (4,445.41)
obligation
Fair value of 1,444.99 - 98.93 98.93 (822.93) 13.25 - - - - 13.25 806.40 1,540.64
plan assets
Benefit liability (3,305.51) (421.51) - 15.85 806.40 (2,904.77)

233
31 March 2023 changes in the defined benefit obligation and fair value of plan assets
Gratuity cost charged to
Remeasurement gains/(losses) in other comprehensive income
profit or loss
Return on Re
Actuarial Actuarial
plan assets measurement
Sub-total changes changes Contributions
Particulars 01-Apr-22 Net (excluding due to Experience Sub-total 31-Mar-23
Service included Benefits arising from arising from by employer
interest amounts asset ceiling adjust included
cost in profit or paid changes in changes in
expense included in (excluding ments in OCI
loss demographic financial
net interest interest
assumptions assumptions
expense) income)
Defined benefit (5,900.45) (206.60) (350.84) (557.44) 1,761.93 (20.69) - - 111.65 (145.50) (54.54) - (4,750.50)
obligation
Fair value of 2,477.17 - 141.32 141.32 (1,761.93) 41.58 - - - - 41.58 546.85 1,444.99
plan assets
Benefit liability (3,423.28) (416.12) - (12.96) 546.85 (3,305.51)
The Company and its subsidary has different plan assets. Holding Company has funded excess amount. However, there is a liability in respect of subsidiary company which
cannot be set off against each other and disclosed separately in financial statements.
Annual Report 2023 - 24
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
B. Settlement Allowance
31 March 2024 changes in the defined benefit obligation and fair value of plan assets (Rs. In lakhs)
Defined Benifit cost charged
Remeasurement gains/(losses) in other comprehensive income
to profit or loss
Return on Re
Actuarial Actuarial Contributions
plan assets measurement
Particulars 01-Apr-23 Sub-total changes changes by 31-Mar-24
Net (excluding due to Experience Sub-total
Service included Benefits arising from arising from
interest amounts asset ceiling adjust included employer
cost in profit or paid changes in changes in
expense included in (excluding ments in OCI
loss demographic financial
net interest interest
assumptions assumptions
expense) income)
Defined benefit (234.40) (19.70) (15.56) (35.26) 48.19 - - - (4.04) 13.71 9.67 - (211.80)
obligation
Fair value of - - - - - - - - - - - -
plan assets
Benefit liability (234.40) (35.26) 48.19 9.67 - (211.80)

31 March 2023 changes in the defined benefit obligation and fair value of plan assets

234
Defined Benifit cost charged
Remeasurement gains/(losses) in other comprehensive income
to profit or loss
Return on Re
Actuarial Actuarial Contributions
plan assets measurement
Particulars 01-Apr-22 Sub-total changes changes by 31-Mar-23
Net (excluding due to Experience Sub-total
Service included Benefits arising from arising from
interest amounts asset ceiling adjust included employer
cost in profit or paid changes in changes in
expense included in (excluding ments in OCI
loss demographic financial
net interest interest
assumptions assumptions
expense) income)
Defined benefit (276.50) (21.97) (16.48) (38.45) 67.45 - - - 6.66 6.44 13.10 - (234.40)
obligation
Fair value of - - - - - - - - - - - - -
plan assets
Benefit liability (276.50) (38.45) 67.45 13.10 - (234.40)

C. Provident Fund (Interest shortfall)

The Company's Contribution paid / payable to Provident Fund and the liability / obligation is recognised on accrual basis. The Company's Provident Fund Trust is exempted
u/s section 17 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. The condition for grant of exemptions stipulate that the employer shall make good
deficienty, in any, in the interest rate declared by the Trust vis-a-vis Statutory rate. The Company does not anticipate any further obligations in the near forseeable future
Annual Report 2023 - 24

having regard to the assets of the fund and return on investment.

The Company (Standalone) has recognised the obligation on the basis of Actuarial Valuation carried out as on 31st March 2024, that there is a present value of obligation
due to difference between the expected interest rate to be earned by the Trust and expected future EPFO interest rate, being the interest shortfall of Rs.59.40 lakhs as on
31.3.2024 and Rs.75.13 lakhs as on 31.3.2023.
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

48B. Employee Benefits (Contd.):

B Sensitivity analysis:
The key actuarial assumptions to which the defined benefit plans are particularly sensitive to are discount
rate and fully salary escalation rate. The following table summarises the impact on the reported defined
benefit obligation at the end of the reporting period arising on account of an increase or decrease in the
assumptions by 100 basis points:

(i) Gratuity (Rs. In lakhs)

As at 31 March 2024 As at 31 March 2023
Particulars
Decrease Increase Decrease Increase
Change in discounting rate 179.01 162.28 180.99 164.40
Change in rate of salary increase 117.35 113.63 122.07 117.99
Change in withdrawal rates 26.51 23.00 25.10 21.60

(ii) Settlement Allowance (Rs. In lakhs)

As at 31 March 2024 As at 31 March 2023
Particulars
Decrease Increase Decrease Increase
Change in discounting rate 16.03 15.94 19.23 18.42
Change in rate of salary increase 15.16 17.27 17.23 20.62
Change in withdrawal rates 15.52 17.09 13.91 21.06

C. The expected contributions for Gratuity for the next financial year will be Rs.1,951.12 lakhs and Settlement
allowance NIL.

235
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

49. Segment reporting
Year ended 31 March 2024
I. Revenue (Rs. in lakhs)
Food Adjustment/
Machine
Particulars Processing Projects Others Intersegment Total
Tools
Unit Elimination
Revenue 3604.75 9969.99 1758.62 1186.49 (181.17) 16,338.68
Interest Income 14.63 129.66 169.16 2,766.63 (1,544.11) 1,535.97
Total 3,619.38 10,099.65 1,927.78 3,953.12 (1,725.28) 17,874.65
Less:
Interest expense 0.32 8,349.80 - - (1,544.11) 6,806.01
Depreciation and Amortisation 13.45 604.26 13.08 197.09 - 827.88
expense
Segment result 3,605.61 1,145.59 1,914.70 3,756.03 (181.17) 10,240.76
Add: Unallocable income - - - - - 3,860.85
Less: Unallocable expenses - - - - - 27,403.17
Total Profit / Loss before tax - - - - - (13,301.56)
Less: Income Tax expense - - - - - (293.78)
Profit/Loss for the Year (13,007.78)
II. Assets and Liabilities
Food
Machine Total Adjustment/
Particulars Processing Projects Others Discontinued Total
Tools Segments Elimination
Unit
Total assets 2,440.32 31,338.54 5,563.34 22,621.34 61,963.54 - (1,603.10) 60,360.44
Total liabilities 1,936.54 56,426.40 1,733.74 17,301.33 77,398.01 - 1,58,165.62 2,35,563.63

Year ended 31 March 2023

I. Revenue
Food Adjustment/
Machine
Particulars Processing Projects Others Intersegment Total
Tools
Unit Elimination
Revenue from Operations 4354.57 14224.06 1415.45 804.68 (417.90) 20,380.86
Interest income 16.81 90.04 151.92 2,089.86 (1,408.06) 940.57
Total 4,371.38 14,314.10 1,567.37 2,894.54 (1,825.96) 21,321.43
Less:
Interest expense 1.56 8,287.07 - 11.13 (1,398.11) 6,901.65
Depreciation and Amortisation 13.45 708.75 13.03 197.39 - 932.62
expense
Segment result 4,356.37 5,318.28 1,554.34 2,686.02 (427.85) 13,487.16
Add: Unallocable income - - - - - 4,606.88
Less: Unallocable expenses - - - - - 29,774.50
Total Profit / Loss before tax - - - - - (11,680.46)
Less: Income Tax expense - - - - - 795.28
Profit/Loss for the year (12,475.74)

236
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

II. Assets and Liabilities (Rs.in lakhs)
Food
Machine Total Adjustment/
Particulars Processing Projects Others Discontinued Total
Tools Segments Elimination
Unit
Total assets 3,154.12 36,680.67 5,840.55 24,336.47 70,011.81 1,304.31 (1,701.95) 69,614.17
Total liabilities 2,889.15 55,129.80 2,090.31 18,156.50 78,265.76 4.21 4,21,657.77 4,99,927.74

Reconciliations to amounts reflected in the financial statements

(Rs. In lakhs)
Reconciliation of Profit/Loss 31-Mar-24 31-Mar-23
Segment result 10,240.76 13,487.16
Add: Unallocable income 3,860.85 4,606.88
Less: Unallocable expenses 27,403.17 29,774.50
Profit / Loss of Continuing Operations before tax (13,301.56) (11,680.46)
Add/Less: Profit or Loss from Discontinued Operations 3,53,070.16 185.45
Total Profit / Loss before tax 3,39,768.60 (11,495.01)
Less: Tax Expense (84,692.34) (795.28)
Profit/Loss for the year 2,55,076.26 (12,290.29)

Reconciliation of assets
Segment operating assets 61,963.54 70,011.81
Assets held by Discontinued Operations - 1,304.31
Inter-segment (elimination) (1,603.10) (1,701.95)
Total assets 60,360.44 69,614.17

Reconciliation of liabilities
Segment operating liabilities 77,398.01 78,265.76
Liabilities of Discontinued Operations - 4.21
Inter-segment (elimination) (1,603.10) (1,701.95)
Deferred tax liabilities 0.17 42.68
Borrowings 1,59,768.55 4,23,317.04
Total liabilities 2,35,563.63 4,99,927.74

237
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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Capital expenditure consists of additions of property, plant and equipment.
Inter-segment income and expenses, assets and liabilities are eliminated upon consolidation and reflected in
the ‘adjustments and eliminations’ column.
The Company has classified an operating segment as a discontinued operation in 2016. Ind-AS 108 does not
provide guidance as to whether segment disclosures apply to discontinued operations. Although the disposed
segment is material, the Company has not disclosed the results within the segment disclosures under Ind-AS
108. Ind-AS 105 states that the requirements of other standards do not apply to discontinued operations,
unless they specify disclosures applicable to them. Since Ind-AS 108 does not refer to discontinued operations,
entities are not required to include them as a reportable segment. The Assets and Liabilities of Discontinued
Operations is reported in the 'adjustments and elimination' column.
(Rs. In lakhs)
Particulars 31-Mar-24 31-Mar-23
Major Customer- Details of Revenue from Single Customer exceeding
10% of total revenue
India 5,386.31 3,524.01
Outside India - -
Total revenue per consolidated statement of profit or loss 5,386.31 3,524.01

The revenue information above is based on the locations of the

customers.

Food Processing Unit

Revenue exceeding 10% from any individual customers:
During the year Rs. 2679.58 lakhs (Previous Year Rs.3679.63 lakhs)

Machine Tools
Revenue from one customer amounted to Rs.3118.03 Lakhs which is exceeding 10% of the revenue from
operations for the year ended 31 March 2024
Revenue from one customer amounted to Rs.1706.68 Lakhs which is exceeding 10% of the revenue from
operations for the year ended 31 March 2023

238
 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

50 Ratio Analysis
Ratio Numerator Denominator FY 2023-24 FY 2022-23 % Variance Reason for Variance
1 Current Ratio Current Assets Current Liabilities 0.24 0.13 87.92% Due to reduction in Current
liabilities on account of write
back of GOI Liabilities
2 Debt-Equity Ratio Total Debt Shareholder's - - - Due to equity is negative the
Equity Debt Equity Ratio cannot be
determined and compared
3 Debt Service Coverage Earnings Debt service -0.05 -0.01 399.70% Due to reduction in debt
Ratio available for debt (Interest + consequent to write back of GOI
service(EBITDA) Principal) Liabilities of HMT Watches Ltd.,
under discontinued operations.
4 Return on Equity Ratio Net Profit after Average - - - Due to equity is negative the
taxes Shareholder's Return on Equity ratio cannot be
equity determined and compared
5 Inventory turnover ratio Sales Average Inventory 1.40 1.56 -10.56% -
6 Trade Receivables Credit Sales Average Trade 1.02 1.19 -14.10% -
turnover ratio receivables
7 Trade payables turnover Net Credit Average Trade 1.10 1.24 -10.93% -

239
ratio Purchases/ Payables
Services
8 Net capital turnover Net Sales Average Working -0.05 -0.05 0.00% -
ratio Capital
9 Net profit ratio Net Profit After Revenue 1561.18% -60.30% -2688.89% Due to increase in Profit Ater
tax Tax consequent to write back
of GOI Liabilities of discontinued
operations, HMT Watches
Limited.
10 Return on Capital Earnings before Capital Employed - - - Due to equity is negative the
employed interest and = Tangible return on Capital Employed
taxes Networth + Total cannot be determined and
Debt compared
11 Return on Investment - - - - - No Return on Investments, hence
ratio is not determined
Annual Report 2023 - 24
 Annual Report 2023 - 24

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

51 The Group has an Investment in Gujrat State Machine Tools Corporation Limited being an Associate
Company, the Group had not accounted the same as associate due to non availability of information.
Accordingly on implementation of IND AS the company has accounted as per IND AS 28.
52 The networth of the Group has been completely eroded. Considering the realisable value of the non
current assets held for sale, support from the Government of India and other business plans, the Company
has prepared financial statements of the Group on the basis that it is a going concern and that no
adjustments are considered necessary to the carrying value of assets and liabilities.
53 Deferred Tax
Provision for income taxes has been made in terms of IndAS 12 -Income Taxes.
Movement in deferred tax asset/(liability) (Rs. In lakhs)
Particulars As on 31.3.2024 As on 31.3.2023
Net deferred Tax asset/liability at the beginning of the year 42.68 18.33
Add: (deferred Tax benefits) / charges for the year (42.51) 24.35
Net deferred Tax asset/liability at the end of of the year 0.17 42.68

The net Deferred Tax Asset/(Liability) comprises the tax impact arising from the timing differences on
account of:
Particulars As on 31.3.2024 As on 31.3.2023
Depreciation (120.58) (169.32)
Provision for employee benefits 120.41 126.64

The Holding Company has not recognised deferred tax asset on unused tax losses in the absence of
reasonable certainity of future business profits

54 A charge by ID 80046855 is still open in the Index of charge on the Website of Ministry of Corporate Affairs
pertains to State Bank of India. The Company has already discharged the debt of State Bank of India long
back. Since the issue is almost twenty five years old, efforts will be made in co-ordination with State Bank
of India for obtaining the necessary documents for satisfaction of charge .
55 The Holding Company has invested Rs.15 lakhs (50% of Equity Shares) comprising 1,50,000 equity shares
of Rs.10/- each fully paid up in Sudmo HMT Process Engineers (India) Ltd, Bangalore (M/s Submo-HMT).
M/s Sudmo-HMT has no operations. The Board of HMT Ltd has approved (February 2020/July 2021) for
closure of the defunct JV Company and submitted closure proposal to the Administrative Ministry on July
2021 for approval. Awaiting furhter communication from the Ministry.
56 The Holding Company has invested Rs.20.84 lakhs (39% of Equity Shares) comprising 20,84,050 equity
shares of Rs.1/- each fully paid up in Gujarat State Machine Tools Corporation, Bhavanagar (M/s. GSMTC).
The Board of HMT Ltd gave (March 2021) in principle approval liquidation of M/s GSMTC. and issued
a consent letter to Gujarat Industrial Investment Corporation Ltd (GIIC). GIIC approved (Sept. 2021)
liquidation of M/s GSMTC and submitted (October 2021) the proposal to Industries and Mines Department,
Govt. of Gujarat. HMT Limited submitted (April 2022) the liquidation proposal to the Administrative
Ministry for approval. Awaiting further communication from the Ministry.

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

57 The Holding Company has invested 30,00,000 equity shares of 1 Naira each fully paid up in Nigeria
Machine Tools Ltd, Nigeria (M/s NMTL. The Board of HMT Ltd approved (February 2020/July 2021) for
disinvestment of stake in M/s NMTL and sought approval from Administrative Ministry. Awaiting furhter
communication from the Ministry.
58 The Group has not advanced or loaned or invested any funds (either from borrowed funds or share
premium or any other sources or kind of funds) to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the group (“Ultimate Beneficiaries”) or provide any guarantee, security or
the like on behalf of the Ultimate Beneficiaries.
59 The Group has not received any funds from any person(s) or entity(ies), including foreign entities (“Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Group shall, directly
or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
60 The Company has no transactions with struck off Companies under section 248 of the Companies Act,
2013.
61 The ammendments in Indian Accounting Standards which are applicable to the Company are not expected
to have any significant impact on the Company's Financial Statements
62 Balances under Trade "Receivables", 'Loans & Advances', 'Trade payables' and Other Current Liabilities'
are subject to confirmation , although confirmation has been sought in most of the cases.
63 The figures of previous year have been regrouped/reclassified, wherever necessary, to conform to the
current year's classification.

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

64 Period and amount of Default are as follows:
HMT Limited
Nature of Borrowing Name of the Amount of installment and period of default No of Days
[Interest Free] lender (Rs. In Lakhs) Delay or
Unpaid
Government of India Government 1)     Rs.6,073.60 Lakhs due since 21.01.2018. 2260
Loan [Interest Free] dated of India 2)     Rs.6,073.60 Lakhs due since 21.01.2019. 1895
21.01.2017 3)     Rs.6,073.60 Lakhs due since 21.01.2020. 1530
4)     Rs.6,073.60 Lakhs due since 21.01.2021. 1164
5)     Rs.6,073.60 Lakhs due since 21.01.2022. 799
Government of India Loan Government 1)      Rs.4,800 Lakhs due since 16.02.2018. 2234
[Interest Free] dated of India 2)      Rs.4,800 Lakhs due since 16.02.2019. 1869
16.02.2017 3)      Rs.4,800 Lakhs due since 16.02.2020. 1504
4)      Rs.4,800 Lakhs due since 16.02.2021. 1,138
5)      Rs.4,800 Lakhs due since 16.02.2022. 773
Government of India Loan Government 1)      Rs.1,958 Lakhs due since 29.04.2018. 2162
[Interest Free] dated of India 2)      Rs.1,958 Lakhs due since 29.04.2019. 1797
29.04.2017 3)      Rs.1,958 Lakhs due since 29.04.2020. 1431
4)     Rs.1,958 Lakhs due since 29.04.2021. 1,066
5)     Rs.1,958 Lakhs due since 29.04.2022. 731
HMT Machine Tools Ltd
CAPEX Loan @15.50% interest Government 1)      Rs.79 Lakhs due since 02.04.2007 6207
dated 30.03.2006 of India 2)      Rs.79 Lakhs due since 02.04.2008 5841
3)      Rs.79 Lakhs due since 02.04.2009 5476
4)      Rs.79 Lakhs due since 02.04.2010 5111
5)      Rs.79 Lakhs due since 02.04.2011 4746
VRS Loan @ 3.5@ interest Government 1)      Rs.556.95 Lakhs due since 27.12.2008 5572
dated 01.11.2007 of India 2)      Rs.556.95 Lakhs due since 27.12.2009 5207
3)      Rs.556.95 Lakhs due since 27.12.2010 4842
4)      Rs.556.95 Lakhs due since 27.12.2011 4477
5)      Rs.556.95 Lakhs due since 27.12.2012 4111
For payment of Statutory Government 1)      Rs.156.40 Lakhs due since 30.03.2008 5844
Dues @15.50% interest dated of India 2)      Rs.156.40 Lakhs due since 30.03.2009 5479
29.03.2007 3)      Rs.156.40 Lakhs due since 30.03.2010 5114
4)      Rs.156.40 Lakhs due since 30.03.2011 4749
5)      Rs.156.40 Lakhs due since 30.03.2012 4383
VRS Loan @ 3.5@ interest Government 1)      Rs.243.29 Lakhs due since 15.01.2010 5188
dated 31.12.2008 of India 2)      Rs.243.29 Lakhs due since 15.01.2011 4823
3)      Rs.243.29 Lakhs due since 15.01.2012 4458
4)      Rs.243.29 Lakhs due since 15.01.2013 4092
5)      Rs.243.29 Lakhs due since 15.01.2014 3727

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

For payment of Statutory Government 1)      Rs.888.52 Lakhs due since 01.08.2013 3894
Dues @13.50% interest dated of India 2)      Rs.888.52 Lakhs due since 01.08.2014 3529
24.07.2012 3)      Rs.888.52 Lakhs due since 01.08.2015 3164
4)      Rs.888.52 Lakhs due since 01.08.2016 2798
5)      Rs.888.52 Lakhs due since 01.08.2017 2433
For payment of Statutory Government 1)      Rs.392 Lakhs due since 21.03.2015 3297
Dues @13.50% interest dated of India 2)      Rs.392 Lakhs due since 21.03.2016 2931
18.03.2014 3)      Rs.392 Lakhs due since 21.03.2017 2566
4)      Rs.392 Lakhs due since 21.03.2018 2201
5)      Rs.392 Lakhs due since 21.03.2019 1836
For payment of Statutory Government 1)      Rs.480 Lakhs due since 04.10.2015 3100
Dues @13.50% interest dated of India 2)      Rs.480 Lakhs due since 04.10.2016 2734
23.09.2014 3)      Rs.480 Lakhs due since 04.10.2017 2369
4)      Rs.480 Lakhs due since 04.10.2018 2004
5)      Rs.480 Lakhs due since 04.10.2019 1639
Working Capital Loan @13.50 % Government 1)      Rs.500 Lakhs due since 04.10.2015 3100
interest dated 23.09.2014 of India 2)      Rs.500 Lakhs due since 04.10.2016 2734
3)      Rs.500 Lakhs due since 04.10.2017 2369
4)      Rs.500 Lakhs due since 04.10.2018 2004
5)      Rs.500 Lakhs due since 04.10.2019 1639
For payment of Statutory Government 1)      Rs.378.20 Lakhs due since 11.10.2015 3093
Dues @13.50% interest dated of India 2)      Rs.378.20 Lakhs due since 11.10.2016 2727
09.10.2014 3)      Rs.378.20 Lakhs due since 11.10.2017 2362
4)      Rs.378.20 Lakhs due since 11.10.2018 1997
5)      Rs.378.20 Lakhs due since 11.10.2019 1632
For payment of Salaries & Government 1)      Rs.548.60 Lakhs due since 11.10.2015 3093
Wages @13.50% interest dated of India 2)      Rs.548.60 Lakhs due since 11.10.2016 2727
09.10.2014 3)      Rs.548.60 Lakhs due since 11.10.2017 2362
4)      Rs.548.60 Lakhs due since 11.10.2018 1997
5)      Rs.548.60 Lakhs due since 11.10.2019 1632
For implementation of 1997 Government 1)      Rs.586.80 Lakhs due since 10.02.2016 2971
pay revision @13.50% interest of India 2)      Rs.586.80 Lakhs due since 10.02.2017 2605
dated 06.02.2015 3)      Rs.586.80 Lakhs due since 10.02.2018 2240
4)      Rs.586.80 Lakhs due since 10.02.2019 1875
5)      Rs.586.80 Lakhs due since 10.02.2020 1510
Working Capital Loan @13.50 % Government 1)      Rs.1000 Lakhs due since 10.02.2016 2971
interest dated 06.02.2015 of India 2)      Rs.1000 Lakhs due since 10.02.2017 2605
3)      Rs.1000 Lakhs due since 10.02.2018 2240
4)      Rs.1000 Lakhs due since 10.02.2019 1875
5)      Rs.1000 Lakhs due since 10.02.2020 1510

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NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

For payment of Statutory Government 1)      Rs.526.80 Lakhs due since 31.03.2016 2921
Dues @13.50% interest dated of India 2)      Rs.526.80 Lakhs due since 31.03.2017 2556
31.03.2015 3)      Rs.526.80 Lakhs due since 31.03. 018 2191
4)      Rs.526.80 Lakhs due since 31.03.2019 1826
5)      Rs.526.80 Lakhs due since 31..03.2020 1460
For implementation of 1997 Government 1)      Rs.634 Lakhs due since 03.10.2016 2735
pay revision @13.50% interest of India 2)      Rs.634 Lakhs due since 03.10.2017 2370
dated 30.09.2015 3)      Rs.634 Lakhs due since 03.10. 018 2005
4)      Rs.634 Lakhs due since 03.10.2019 1640
5)      Rs.634 Lakhs due since 03..10.2020 1274

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 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
65 Statutory Group Information

Net Assets, i.e., total

Share in other Share in total
assets minus total Share in profit and loss
Comprehensive income Comprehensive income
liabilities
As % of As % of
Name of the entity As % of
As % of consolidated consolidated
Rs. in consolidated Rs. in Rs. in Rs. in
consolidated net Other net Total
lakhs net Profit/ lakhs lakhs lakhs
net assets Comprehensive Comprehensive
Loss
income assets
HMT Ltd
Balance as at 31 March, 2024 36.30% -63,603.75 0.91% 2,330.09 124.97% 42.64 0.93% 2,372.73
Balance as at 31 March, 2023 14.61% -62,872.51 -4.90% 601.91 -277.88% 20.73 -5.06% 622.64
Subsidiaries
1 HMT Machine Tools Ltd
Balance as at 31 March, 2024 66.05% -1,15,714.22 -6.13% -15,646.45 -19.99% -6.82 -6.14% -15,653.27
Balance as at 31 March, 2023 24.07% -1,03,588.11 110.42% -13,570.48 440.62% -32.87 110.62% -13,603.35
2 HMT International Ltd
Balance as at 31 March, 2024 -2.34% 4,096.58 0.12% 309.15 -4.98% -1.70 0.12% 307.45

245
Balance as at 31 March, 2023 -0.98% 4,206.93 -4.02% 493.62 -62.73% 4.68 -4.05% 498.30
3 HMT Watches Ltd
Balance as at 31 March, 2024 0.00% - 105.10% 2,68,084.04 0.00% - 105.09% 2,68,084.04
Balance as at 31 March, 2023 62.30% -2,68,078.65 -1.51% 185.45 0.00% - -1.51% 185.45
Associates (investment as
per the equity method)
Balance as at 31 March, 2024 0.00% - 0.00% - 0.00% - 0.00% -
Balance as at 31 March, 2023 0.00% - 0.00% - 0.00% - 0.00% -
Joint ventures (investment as
per the equity method)
SUDMO-HMT Process
Engineers (India) Ltd
Balance as at 31 March, 2024 -0.01% 18.20 0.00% -0.57 0.00% 0.00% -0.57
Balance as at 31 March, 2023 0.00% 18.77 0.01% -0.79 0.00% 0.01% -0.79

Total
Balance as at 31 March, 2024 100.00% -1,75,203.19 100.00% 2,55,076.26 100.00% 34.12 100.00% 2,55,110.38
Annual Report 2023 - 24

Balance as at 31 March, 2023 100.00% -4,30,313.57 100.00% -12,290.29 100.00% -7.46 100.00% -12,297.75