Dear Members,


Your directors are pleased to present the 54th Annual Report on the business and
operations of the Company along with Audited Standalone and Consolidated Financial
Statements for the year ended 31st March, 2024.


1. FINANCIAL PERFORMANCE AND HIGHLIGHTS 



The financial highlights of your Company for the Financial Year 2023-24 are briefly
mentioned below to give an overview of accomplishments on all fronts:


(Rs. in Crore)




  

    
Particulars
    
2023-24
    
2022-23
  
  

    
Revenue from Operations
    
7784.29
    
7049.46
  
  

    
Other Income
    
163.81
    
36.72
  
  

    
Total Income
    
7948.10
    
7086.18
  
  

    
Finance cost
    
4960.82
    
4507.08
  
  

    
Impairment on Financial instruments
    
(208.09)
    
(73.69)
  
  

    
Other Expenses including Employee Benefit Exp.
    
351.93
    
363.38
  
  

    
Total expenditure
    
5104.66
    
4796.77
  
  

    
Profit before tax
    
2843.44
    
2289.41
  
  

    
Less:
    

    

  
  

    
Current Tax
    
510.50
    
435.00
  
  

    
Deferred tax
    
215.68
    
154.19
  
  

    
Adjustment of tax of earlier years (Net)
    
0.52
    
(1.40)
  
  

    
Profit after
    
2116.74
    
1701.62
  
  

    
Other Comprehensive Income
    
19.78
    
24.74
  
  

    
Total Comprehensive Income
    
2136.52
    
1726.36
  
  

    
Balance Surplus of previous year
    
5.09
    
2.97
  
  

    
Amount available for Appropriation
    
2141.61
    
1729.33
  
  

    
Less: Appropriation
    

    

  
  

    
Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 and
    u/s 29C of
    
550.00
    
500.00
  
  

    
NHB Act, 1987
    

    

  
  

    
Transfer to Debenture Redemption Reserve
    
239.58
    
280.63
  
  

    
Transfer to Reserve for Bad & Doubtful Debt
    
120.00
    
105.00
  
  

    
Interim Dividend
    
300.29
    
150.14
  
  

    
Transfer to Impairment Reserve
    
173.44
    
67.88
  
  

    
Other Comprehensive Income (Net) on account of Hedge Accounting
    
12.65
    
-
  
  

    
Net surplus after appropriations
    
745.65
    
625.68
  
  

    
Proposed final dividend
    
530.51
    
620.59
  
  

    
Surplus available after final dividend
    
215.14
    
5.09
  
  

    
EPS (Basic/Diluted) (in Rs.)
    
10.57
    
8.50
  


During the period, your Company has performed very wellbywitnessingagrowth Profitbefore
Tax (PBT). 24.20%in

Your Company has seen a growth of 7.57% in its Net Worth that has reached Rs. 16,614.30
Crore in Financial Year 2023-24 from Rs. 15,445.25 Crore in Financial Year 2022-23.


Consolidated Financial Statements 


Pursuant to Section 129(3) of the Companies Act, 2013, the Company has prepared
Consolidated Financial Statement (CFS) in respect of only one Joint Venture Company namely
Shristi Urban Infrastructure Development Limited and an appropriate disclosure stating the
reasons relating to non-consolidation of accounts of other three companies have been given
in the CFS.

A Statement containing salient features of Financial Statements of Joint Venture and
Associate Companies, has been given in the prescribed format ‘AOC - 1' and is annexed
as part of the Consolidated Financial Statements. There are no material changes and
commitments, occurred subsequent to the close of Financial Year of the Company and the
date of this Board's report, affecting the financial position of the Company and its state
of affairs. Pursuant to Section 136 of the Companies Act, 2013, the Audited Financial
Statements and all other documents required to be attached with the Financial Statements
are available on the Company's website at www.hudco.org.in and are also available for
inspection till the date of the ensuing Annual General Meeting during business hours on
all working days at the Registered Office of the Company.


2. DIVIDEND 



Your Company is consistently rewarding its shareholders by way of dividend payment. The
Board of Directors of your Company had earlier approved payment of Interim Dividend
@15.00% i.e., Rs.1.50/- per equity share having Face Value of Rs. 10/- each totalling to
Rs. 300.29 Crore on the paid-up equity share capital of the Company in March, 2024 and the
same has been paid.

Further, the Board of Directors, have also recommended payment of Final Dividend @
26.50% i.e., Rs. 2.65/- per Equity Share having Face Value of Rs. 10/- each for the
Financial Year 2023-24, subject to approval of the Shareholders at the ensuing 54th Annual
General Meeting.

In compliance with regulation 43A of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015, your Company has formulated
‘Dividend Distribution Policy and the same is available on Company's website at
https://www.hudco.org.in//writereaddata/DDP.pdf.

As per guidelines issued by Department of Investment and Public Asset Management
(DIPAM), Government of India, the Company is required to pay a minimum Annual Dividend of
30% of Profit after Tax (PAT) or 5% of the net-worth, whichever is higher, subject to
maximum limit of 50% of PAT prescribed by RBI. Further, HUDCO had sought exemption from
payment of dividend as per available distributable profits in place of prescribed norms
stated in OM dated 27th May, 2016 issued by Ministry of Finance. DIPAM has, vide its OM
no. 5/4/2016- Policy dated 13th January, 2017, conveyed that Empowered Committee on
Management of Government Investment in CPSEs, in its meeting held on 9th January, 2017,
under the Chairmanship of Secretary, DIPAM, had observed that "Keeping in view the
requirement to meet the Statutory Deductions out of the profit earned by the Company, the
Committee noted that no exemption may be required by the Company under the
guidelines". After analysis of various financial parameters, Cash Flow Position and
Available Distributable Profits, the Board of Directors have paid/recommended total
dividend of Rs. 4.15/- per Share (41.50%).


3. SHARE CAPITAL 



During the Financial Year, the President of India, being the promoter has further
divested its equity shareholding in HUDCO comprising 13,62,52,479 equity shares having
face value of Rs. 10/- each through Ministry of Housing and Urban Affairs (MoHUA),
Government of India.

As on 31st March, 2024, the authorized share capital of the Company was Rs. 2,500 Crore
with issued, subscribed and paid-up equity share capital of Rs. 2,001.90 Crore. The
paid-up share capital comprises promoter's shareholding of 75.00% held by the President of
India through the Ministry of Housing and Urban Affairs (MoHUA) - 54.27% and Ministry of
Rural Development (MoRD) - 20.73% and the balance 25.00% is held by the Public. There is
no change in the authorized, issued, subscribed and paid-up equity share capital of the
Company during the year. The Company has not issued any shares with differential voting
right/ Sweat Equity Shares during the year under report. 

Listing of securities and payment of listing fee 



The securities of the Company are listed at BSE Limited (BSE) and National Stock
Exchange of India Limited (NSE) and the annual listing fee for the Financial Year 2024-25
has been paid to the Stock Exchanges.


Transfer of unclaimed Dividend and Shares to Investor Education & Protection Fund


HUDCO has become a listed Company in May, 2017, consequent upon disinvestment made by
President of India of its equity shareholding in the Company. In compliance of the
provisions of Section 124 and 125 of the Companies Act, 2013, Company is not required to
transfer any amount of dividend remained unpaid or unclaimed to Investor Education &
Protection Fund (IEPF), as period of 7 years has not elapsed from the date it became due
for payment. Accordingly, no shares and unclaimed dividend were transferred to IEPF
account.


4. MEMORANDUM OF UNDERSTANDING (MoU) 



HUDCO enters into an annual MoU with its Administrative Ministry, i.e., Ministry of
Housing and Urban Affairs, Government of India, wherein, a set of macro performance
parameters, mainly financial and a few non-parameters with annual targets are set by the
Department of Public Enterprises (DPE). Your Company was rated ‘Very Good' by DPE for
its performance in terms of MoU parameters for the Financial Year 2022-23.

HUDCO exhibited an impressive operational and financialperformance during Financial
Year 2023-24. For the Financial Year 2023-24, there were 12 MoU parameters and 8
compliance parameters. The achievements in respect of some key parameters are as presented
below: -


  

    
Sl. No.
    
MoU Parameter
    
Achievement (2023-24)
  
  

    
1.
    
Loan disbursed to Total Funds Available
    
99.20%
  
  

    
2.
    
Overdue Loans to Total loans (net)
    
2.84%
  
  

    
3.
    
Net NPA/Total loans (net)
    
0.36%
  
  

    
4.
    
Cost of raising funds through Bonds as compared to similarly
    
- 4.83 bps
  
  

    

    
rated CPSEs (Margin over Reuters)
    

  


Based on the actual achievement against the targets set, DPE evaluates your Company and
awards the MoU Score and Rating in the second half of the current Financial Year. 


5. ELEVATION OF HUDCO AS NAVRATNA COMPANY 



Your directors are pleased to inform that the Government of India, based on
comprehensive evaluation and continued excellent performance of your Company, has
conferred ‘Navratna Status' to HUDCO on 18th April, 2024. The coveted status of a
‘Navratna CPSE' casts additional responsibility on your Company to successfully
operate in a competitive environment and become a global player. Now HUDCO has more
operational flexibility, the elevation of the status has also enabled HUDCO to increase in
delegation of powers for capital expenditure, enter into strategic alliances, structure
and implement the schemes relating to Human Resource Management.


6. LENDING ACTIVITIES 

HUDCO, the premier techno-financing institution under the Ministry of Housing and Urban
Affairs, Government of India has completed yet another year of excellence, full of
challenges, with a great sense of satisfaction in the service of the nation. HUDCO has
demonstrated its robust performance both on operational and financial front, facilitating
in building assets for the Nation through financing housing and infrastructure projects
all over the country. In the Financial Year 2023-24, HUDCO, with its prudent business
policies and proactive management, has registered the sanctions of Rs. 82,386.55 Crore and
disbursement of Rs. 17,987.03 Crore against the previous year sanctions and disbursement
of Rs. 24,572 Crore and Rs. 8,466 Crore respectively. HUDCO, in its glorious journey of 54
years, since its inception from 1970, has cumulatively sanctioned a total of 17,377
housing and urban infrastructure projects with a total loan of Rs. 3,17,599.79 Crore and
disbursements of Rs. 2,19,778.05 Crore. Further, the Company has sanctioned
financial assistance to more than 201.37 Lakh housing units both in rural and urban areas
in the Country, of which 188.30 Lakh (93.51%) pertains to EWS/ LIG categories.

. Housing Operations 



Under Housing sector during the year under review, HUDCO has sanctioned 12 Nos. of
projects with a loan assistance of Rs. 3,898.78 Crore, inclusive of Rs. 4.4 Crore under
HUDCO Niwas, thereby facilitating construction of 1,16,542 dwelling units. The loan
released during the year is amounting to Rs. 2,365.88 Crore (inclusive of Rs. 6.28 Crore
under HUDCO Niwas). 


Urban Infrastructure Lending


Under the Urban Infrastructure portfolio, HUDCO has sanctioned 62 projects with a loan
assistance of Rs. 78,487.77 Crore covering various sectors like Water Supply, Harbour,
Transport Nagar, Social Infrastructure, Commercial Infrastructure, Road & Transport,
Power, etc. Further, a release of Rs. 15,621.15 Crore was made during the year towards
various schemes. 

In the Financial Year 2023-24, major projects sanctioned are as under:



Housing - HUDCO has sanctioned the loan amount of Rs. 3,000 Crore and disbursed
Rs. 1,500 Crore during the year to Telangana Housing Board for construction of 95,235
Dwelling Units (DU) Indiramma Houses for Below Poverty Line (BPL)/ EWS families [57,141
DUs in Rural areas and 38,094 Units in Urban Areas under PMAY (G) and PMAY (U)
respectively]. Besides the aforesaid scheme, HUDCO has also supported EWS Housing Schemes
of Kerala Urban and Rural Development Finance Corporation under LIFE (Livelihood Inclusion
and Financial Empowerment) scheme. LIFE is a flagship programme of the Government of
Kerala for addressing the issues of homeless in the state of Kerala. KURDFC

(including 1 scheme in the FY 2023-24 with a loan amount of Rs. 217.22 Crore) is
constructing 2,60,841 EWS housing units with a total loan assistance of Rs. 5,470 Crore
under LIFE scheme. The project is being implemented through concerned Local Self Group
Institutions (LSGI) i.e., Urban Local Bodies & Grama Panchayats. In Urban area, the
project is a part of PMAY (U) and it envisages Gap funding of ULB's share for construction
of 63,444 houses in 3 schemes at 86 ULB's across the state of Kerala. Further, in Rural
area, the project envisages for the construction of 1,98,127 houses in two schemes across
941 Grama Panchayats in the State.

Core Infrastructure - HUDCO is actively participating in Government of
India'sprestigiousflagshipprogram of Jal Jeevan Mission. In the Financial Year 2023-24,
HUDCO has providedfinancialassistance of Rs. 3,090.73 Crore to

Rajasthan Water Supply and Sewerage Corporation (RWSSC) towards Gap funding share of
State Government of Rajasthan under the scheme. The project aims to provide Functional
Household Tap Connection (FHTC) to every rural household i.e., Har Ghar Nal Se Jal (HGNSJ)
by 2024 with service level at the rate of 55 litres per capita per day (lpcd). Government
of Rajasthan and GOI would share the project cost in 50:50 ratio. In order to instil the
‘sense of ownership' among the community/ user groups for better implementation and
long-term operation & maintenance of the scheme as well as bringing in transparency,
Gram Panchayat/ Village Water and Sanitation Committee (VWSC)/ Paani Samiti are
implementing the in-village piped water supply infrastructure and related source
development. HUDCO has disbursed the loan amount of Rs. 1,500 Crore in this project during
the year.

HUDCO has also sanctioned 2 schemes with a loan amount of Rs. 400 Crore to Karnataka
Urban Water Supply & Drainage Board for implementation of Water Supply and Under
Ground Drainage Schemes in Karnataka State and has disbursed the loan amount of Rs. 192.53
Crore during the year. The project envisages implementation of Urban Water Supply schemes
in 13 towns and Under Ground Drainage Schemes (UGD) in 7 towns in Karnataka State. The
main component being constructed under water supply projects are raw water supply line,
water treatment plant, pure water supply lines, OHTs and distribution lines intake
structure, raw water supply line, water treatment plant, pure water supply lines and
distribution lines, house service connections etc.

Transport sector - HUDCO has sanctioned two major projects to Maharashtra
State Road Development Corporation (i) Land Acquisition of Multimodal Corridor Phase-I
with a loan amount of Rs. 22,250 Crore, which is an Access-Controlled Multi Modal Corridor
from Virar to Alibaug (Phase-1) of 96.475 km length and (ii) Land Acquisition of Pune Ring
Road (East) with a loan amount of Rs. 5,500 Crore which is an Eastern segment of Pune Ring
Road from Urse to Sortapwadi, with length of 71.35 km.


Further, HUDCO has sanctioned a scheme with an amount of Rs. 2,700 Crore to
Telangana State Road Development Corporation for land acquisition towards Development of
GreenfieldRegional Expressway on northern side of Hyderabad under Bharatmala Pariyojana.

HUDCO has sanctioned a proposal with an amount of Rs. 4,400 Crore to the Rajasthan
State Road Development & Construction Corporation Ltd. (RSRDCC) for various Road &
Bridges Development works like widening, strengthening and renovation of various Road
& construction of Bridges along with infrastructure works in various districts of
Rajasthan namely Ajmer, Alwar, Baran, Barmer, Bharatpur, Bhilwara, Bikaner, Bundi,
Banswara, Chittorgarh, Churu, Dausa, Dholpur, Dungarpur, Jaipur, Jaisalmer, Jalore,
Jhalawar, Jodhpur, Karauli, Kota, Nagaur, Rajsamand, Sawai Madhopur, Sikar, Tonk, Pali
etc., of Rajasthan. The project has a total cost of Rs. 4,940.49 Crore and HUDCO has
disbursed an amount of Rs. 1,000 Crore during the year.

HUDCO has sanctioned a scheme with a loan amount of Rs. 2,092 Crore to Vizhinjam
International Seaport Limited (VISL), an SPV incorporated by Government of Kerala for
development of Vizhinjam International Deepwater Multipurpose Seaport (VIDMS) at
Thiruvananthapuram.

HUDCO has also supported Andhra Pradesh Maritime Board with loan assistance of Rs. 600
Crore for construction and development of 4 fishingharbours at Juvvaladinne,
Machilipatnam, Nizampatnam and Uppada in the state of Andhra Pradesh. HUDCO has also
sanctioned a loan amount of Rs. 1,000 Crore to Mumbai Metro Rail Corporation for
underground Metro line 3 (MML-3) from Colaba-Bandra-Seepz (33.5 kms) for augmenting the
transportation network in the city of Mumbai and has disbursed Rs. 175 Crore during the
year.

Power sector - HUDCO has sanctioned a scheme with a Loan amount of Rs. 1,000
Crore to TANGEDCO, for procurement of Transformers, Cables, Accessories and Conductors to
be installed in the power distribution network, which will result in strengthening the
distribution system in the State of Tamil Nadu. HUDCO has disbursed Rs. 750 Crore in this
scheme during the year.

HUDCO has also sanctioned a loan amount of Rs. 380 Crore to UP Power Transmission
Corporation Limited for construction of Power Sub-Stations and augmentation works for
electrical sub-stations and associated networks of transmission lines through extra high
voltage, high voltage cables and wires connected with transmission ancillary services in
09 Districts of Uttar Pradesh.

HUDCO has supported Andhra Pradesh Southern Power Distribution Corporation Limited with
a loan amount of Rs. 355.42 Crore for procurement of Three/Single Phase
Distribution Transformers for installation in five districts of Andhra Pradesh and has
disbursed Rs. 177.71 Crore.

HUDCO has also sanctioned a loan amount of Rs. 1,600 Crore to Maharashtra State
Electricity Distribution Corporation Ltd. for payment of power purchase and has released
Rs. 1,600 Crore during the year.

HUDCO also supported the Uttarakhand Power Corporation Ltd. (UPCL) in purchase of
electricity distribution equipment for enhancing its inventory. Out of the requirement of
Rs. 462.77 Crore of UPCL, HUDCO sanctioned loan amount of Rs. 400 Crore and disbursed Rs.
200 Crore during the year.

HUDCO has also sanctioned loan amount of Rs. 400 Crore each to Jaipur Vidyut Vitaran
Nigam Ltd., Ajmer Vidyut Vitaran Nigam Ltd. and Rajasthan Rajya Vidyut Utpadan Ltd. for
their operational requirements.

Commercial Infrastructure - HUDCO has sanctioned a project of Rs. 1,850 Crore to
Haryana International Horticultural Marketing Corporation Limited for setting up of the
India International Horticulture Market (one of its kind in India) at Ganaur, District
Sonepat, Haryana as an ultra-modern market of international standard for handling of
fruits, vegetables and other perishables. In this project various facilities are to be
developed such as 17 marketing/ trading sheds for different commodities i.e. various
fruits and vegetables, flowers, packaged fish and meat and one flagship pavilion
exhibition. The sheds shall include shop/ auction spaces, toilet block, waste bay,
canteen, mini cold storages etc. There shall also be farmer rest houses, retail zone, cab
services/ taxi stand, workshop/ service stations, toll plaza, official's colony,
institutional building/ resource centre, police post, fire station; and various essential
services of sewerage system including STP, storm water drainage, rain water harvesting,
solid waste treatment plant, electrical installations etc.

HUDCO has also sanctioned a project loan of Rs. 850 Crore to Kerala Infrastructure
Investment Fund Board (KIIFB) for land acquisition to establish and develop Global
Industrial Financial and Trade (GIFT) city in Aluva, Ernakulam District, in the state of
Kerala and disbursed an amount of Rs. 800 Crore during the year. The project is a part of
the economic development of Kochi- Bangalore Industrial Corridor (KBIC) to revitalize the
industries in the state of Kerala.


Sectorial overview and government initiative 

Support to Economically Weaker Sections HUDCO has made concerted efforts to reach
the unreached as well as support the flagship programmes of the Government of India. HUDCO
continues to address the housing requirements of weaker sections of the society by
offering financial assistance/loan to the Economically Weaker Sections (EWS) and
Low-Income groups (LIG) segment of the society at a comparatively lower rate of interest.
Further, the Company has cumulatively sanctioned financial assistance to more than 201.37
Lakh housing units both in rural and urban areas in the Country, of which 188.30 Lakh
(93.51%) pertain to EWS / LIG categories.

HUDCO's Support for projects in the North-Eastern Region During the year, HUDCO
has supported projects in the North-Eastern Region, and sanctioned 13 housing and urban
infrastructure schemes with loan amount of Rs. 114.16 Crore in the States of Assam,
Manipur and Nagaland and has disbursed Rs. 21.26 Crore.


HUDCO's role in Government of India scheme(s) – for promoting Housing for All
& Urban Development


Pradhan Mantri Awas Yojana (Urban) - PMAY (Urban) under Housing for All (HFA) was
launched by Govt. of India on 25th June 2015 to assist States/UTs in addressing their
housing shortage. Of the four Verticals of PMAY-Urban, Ministry of Housing &
Urban Affairs (MoHUA) has entrusted HUDCO with desk and site scrutiny in respect of three
verticals viz - In-situ Slum Redevelopment (ISSR),
AffordableHousinginPartnership(AHP)andBeneficiaryLed Construction (New/Enhancement). Under
these, cumulatively up to 31st March, 2024, HUDCO has carried out site and/or desk
scrutiny of 628 projects for construction of 12,94,818 Dwelling Units (DU) (including
12,86,753 EWS DUs) in 449 town/cities under 34 States/UTs of India with project cost of
Rs. 60,407.9817 Crore having central share of Rs. 19,138.0281 Crore. The above 628
projects undertaken include 62 AHP, 543 BLC (New Construction/ Enhancement) and 23 ISSR
projects.

During Financial Year 2023-24, HUDCO has conducted desk & site Scrutiny of 30
projects identifiedby the Ministry and scrutiny fee amounting to Rs. 52.62 Lakhs has been
raised/ received from the Ministry.


Consultancy Initiatives


HUDCO has always been involved in showcasing various facets of consultancy services,
thereby contributing to its overall image and brand building. It has been our endeavour to
maximize growth opportunities while balancing sensitive and sustainable development
concerns. HUDCO has time and again taken responsible and prudent initiatives so as to
create liveable and sustainable cities through pragmatic solutions that reflect the local
culture and ethos and provides integrated and sustainable solutions to planning and design
challenges in urban sector. The multi-disciplinary and competitive team of professionals
in consultancy operations is the manifestation of 54 years of professional commitment and
a rich legacy of pioneering projects executed by HUDCO utilising its inherent strength of
technical personnel, long experience and expertise in the fields of Architecture and
Planning. HUDCO's Consultancy Services Wing, along with has extended a distinct thrust to
the fee-based consultancy providing unique design Offices theRegional concepts while
remaining responsive to its client's diverse requirements but also contributed towards
branding HUDCO as a nationally
recognizedpremiertechnofinancialinstitution.TheRegionalOfficesof HUDCO, having their
presence in all state capitals, add to HUDCO's versatility and outreach of Consultancy
works.

HUDCO has been continuing work on the prestigious assignments having long gestation
periods; which included providing consultancy services for the ‘Vertical Housing
Colony: Shehjar Apartments at Bemina, Srinagar'. In the area of Urban and Regional
Planning, HUDCO consultancy is currently preparing the "Integrated Master Plan for
Rajgir Regional Planning Area and Nalanda Mahavihara World Heritage Site in the state of
Bihar", on the GIS platform. The prestigious project is being undertaken by HUDCO
stage wise as per agreement with the Urban Development and Housing Department, Government
of Bihar. HUDCO Bangalore Regional Office Engineering consultancy assignment with 3 STAR
green building rating of Phase III quarters for HAL staff consisting of 584 multistoried
residential apartments in different locations of HAL's campus area. Further, HAL has
assigned two more consultancy assignments to HUDCO Bangalore RegionalOffice to obtain
Environment ‘Phase III quarters -Construction of HAL staff quarters-Type A, B & C
Bangalore and consent for establishment and consent for operation to Phase III quarters -
Type A, B & C Bangalore from State Pollution Control Board. HUDCO Chennai RO, through
Puducherry Development Office has been involved in preparation of DPR for
‘Comprehensive EWS Housing Layout at Kumaraguru Pallam - Puducherry', Master Plan of
Thirunallar Town Development Plan, Phase II, Development of Queue Complex for Arulmighu
Mariammam Temple Samayapuram, Spiritual Circuit in the UT of Puducherry, and, DPRs for: i)
Identifiedthree lakes at various locations in Puducherry; ii) Development of Arikamedu as
tourism destination in Puducherry; and, iii) Residential school and Marriage hall. HUDCO
is an empanelled institution for Independent Appraisal of Integrated Management Plans
(IMPs) under the National Plan for Conservation of Aquatic Ecosystems (NPCA), a centrally
sponsored scheme being implemented by the Ministry of Environment Forest & Climate
Change (MoEF&CC). During the Financial Year 2023-24, as part of Environment
Engineering Consultancy, HUDCO carried out appraisal of Integrated Management Plans for
five wetlands across India, namely; Tamzey, Yanchentso and Khecheperi Wetlands (Sikkim),
Thol Wetland (Gujarat) and Doyang Wetland (Nagaland) with a total estimated project cost
of about Rs. 55 Crore.

Awards



HUDCO appreciates that the complex challenge of sustainable development that goes much
beyond creation of housing stock and financing infrastructure. It acknowledges the
importance of design that respects the interconnectedness and interdependence between
places, regions and communities as well as between man and nature in shaping sustainable
development. Aligning with its overarching institutional objective of raising awareness
about design as an effective element for positive change and appreciate the innovative
design interventions that have been demonstrated by professionals, HUDCO, as in the past
years, announced HUDCO Design Awards 2023-24, aimed at encouraging and appreciating the
creative and innovative thinking put in by the professionals to make our cities
sustainable and more liveable, and invited entries under five categories, viz; Cost
Effective Rural/ Urban Housing Deploying Innovative/ Emerging and Disaster Resistant
Technologies, New and Innovative Town Design Solutions/Eco-cities, Conservation of
Heritage, Green Buildings and Landscape Planning & Design. HUDCO understands that
sensitive and innovative design can play a major role in creating a high-quality living
environment, while addressing the host of challenges in urban development through planning
and design of urban spaces. As such, HUDCO as in previous years, associated with of the
National Association of Students of Architecture (NASA) for HUDCO-NASA Design Trophy 2024
with the theme ‘Design for liveable and affordable staff housing: Adequate,
accessible and carbon neutral', which aims at decarburizing the built environment and lay
impetus on challenges faced by staff and workers of private and public sector
Corporations, Government departments and at finding solutions to their housing problem.
Thought should also be given to universal design and fostering collaboration for
decarburizing the built environment. All the winning entries for these Awards are brought
out as e-publications for wide dissemination.


7. FINANCIAL REVIEW (i) Accounting Policies



There are changes and addition in existing accounting policies, which are only
clarificatory in nature and have no financial implications on the Financial Statements of
the Company.


(ii) Income from Operations and Profitability

Your Company has reported Total Income for the Financial Year 2023-24 of Rs.
7,948.10 Crore (previous year Rs. 7,086.18 Crore) inclusive of Other Income of Rs. 163.81
Crore (previous year-Rs. 36.72 Crore). While the Profit before Tax (PBT) for the Financial
Year was Rs. 2,843.44 Crore (previous year - Rs. 2,289.41 Crore) and Profit after Tax
(PAT) was Rs. 2,116.74 Crore (previous year - Rs. 1,701.62 Crore). Total Comprehensive
Income for the Financial Year was reported as Rs. 2,136.52 Crore (previous year -
Rs.1,726.36 Crore).


(iii) Non-Performing Assets

The Default and NPA position of your Company is regularly monitored to keep a check
on any fresh addition to NPAs, for resolution of old and chronic defaults and for
compliances with the regulatory requirements, including Prudential Framework for
Resolution of Stressed Assets, as notified by Reserve Bank of India from time to time. The
default and NPA position are regularly reviewed and monitored by the regional level
Default Monitoring & Review Committee. The Default Monitoring & Default Resolution
(DMDR) Wing at Head Office also undertakes joint review with the concerned Regional
Offices along with Corporate Law Wing on quarterly basis. The overall default & NPA
position is periodically reviewed and status is informed to the Committee for Review of
NPAs (a Board level Committee) and Board of Directors.

As at the end of the Financial Year ended 31st March, 2024, your Company reported Gross
NPA of Rs. 2,512.99 Crore, which constitutes 2.71% of total loan portfolio. The Net NPA as
on 31st March 2024 stood at Rs. 329.95 Crore, constituting 0.36% to net loan outstanding,
as against MoU target of 0.40%. During the year 2023-24, an amount of Rs. 429.57 Crore was
recovered from the accounts which were in NPA as on 31st March, 2023. As on 31st
March, 2024, the Overdue Loan to Net Loan Assets ratio was 2.84% as against MoU target of
2.71%. As on 31st March, 2024, out of HUDCO's total loan book of Rs. 92,654.67 Crore,
exposure to Government Sector Agencies was Rs. 90,342.42 Crore, constituting 97.50% of the
total loan, while Private Sector exposure constitutes only 2.50% i.e., Rs. 2,312.25 Crore.
In the case of loans to Government Sector, the Gross NPA stood at Rs. 526.01 Crore with
provision of Rs.196.06 Crore (out of Rs. 526.01 Crore, Rs. 449.73 Crore comprises of
non-government guaranteed exposure). In case of Private Sector exposure, the Gross NPA was
Rs. 1,986.98 Crore against which 100% provision had been made. Further, HUDCO has not
been making any fresh sanctions to the private sector since March 2013. The Company has
made a total provision on loans (Impairment) of Rs. 2,222.55 Crore as per the ECL
Approach, including Rs. 2,183.04 Crore towards the provision on account of loans
(Impairment) against NPA (Stage - III) loans.


(iv) Resource Mobilization its borrowing
Duringtheyear,theCompanyconstantlydiversified portfolio to meet its operational
requirements and optimize cost of funds. During the Financial Year 2023-24, the Company
mobilized its borrowings from diversified resources aggregating to Rs. 21,975.13 Crore
from domestic and international Rs.1,500 Crore mobilized through issue of Unsecured
Taxable Bonds, Rs. 9,002.50 Crore by way of rupee term loans from banks, Rs. 6,654.60
Crore by way of short-term loan from banks, Rs. 3,990.18 Crore through FCNR(B) and Rs.
827.85 Crore through ECB route. The Company's borrowing is planned taking into
consideration ALM gaps, interest mismatches and the prevailing market conditions.

SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 mandate Large
Corporates to raise minimum 25% of their incremental borrowings (with original maturity of
over 1 year) in a Financial Year through issue of debt securities. However, the sources/
modes of borrowings are finalised based on cost effectiveness of each chosen source and
prevailing market conditions. As Corporate Bond yields continued to remain elevated during
the financial year, alternative sources / modes of borrowings were chosen to meet approach
ensured diversification of overall resource base and cost optimisation amidst evolving
market conditions. Further, the issue proceeds of non-convertible debt securities have
been fully utilized for the purpose(s)/ objects stated in the offer document / Information
memorandum.

Further, for maintaining adequate liquidity and meeting interim operational/
contingency requirements, credit lines of Rs. 9,757 Crore were available as on 31st March,
2024 from various scheduled commercial banks. The said facilities, for short-term funding,
were available with the Company, without any commitment charges towards unutilized
amounts.

As a part of prudent policy, the short-term resources are suitably replaced at an
opportune time with longer tenor alternate resources depending upon prevalent market
conditions, internal liquidity position and actual operational requirements. The Company
also reviews the fund position on daily basis and parks surplus funds, if any, in fixed
deposits with scheduled commercial banks as per the board approved policy with an
objective of reducing the negative carry to the extent possible.

RBI has prescribed Liquidity Coverage Ratio (LCR) framework for HFCs. These guidelines
aim for maintenance by ensuring thatof HFCs have sufficient High Quality Liquid
Asset (HQLA) to liquiditybuffer survive any acute liquidity stress scenario lasting for
next 30 days. The Company has been complying with the said directions by maintaining
sufficient liquidity buffer in the form of HQLA, as prescribed.

HUDCO . As on 31 has a diversified funding profile st March, 2024, HUDCO's overall
borrowings stood at Rs. 74,032.21 Crore, which comprised long/Mid-term borrowings
of Rs. 67,377.65 Crore including foreign currency borrowings to the tune of Rs. 4,884.21
Crore and short-term borrowings of Rs. 6,654.56 Crore. Further, as on 31st March,
2024, the long-term borrowings to Net worth, stood at 4.05 times, as against 3.96 times as
on 31st March, 2023. The composition of outstanding borrowings as on 31st
March, 2024 is as under:


(v) Domestic and International Credit Rating Domestic


During the Financial Year 2023-24, the Company's long-term domestic borrowing programme
was awarded the highest credit rating of ‘IND AAA/Stable', ‘[ICRA] AAA (Stable)'
and ‘CARE AAA [Triple A]; Stable' by M/s India Ratings & Research (IRRPL), M/s
ICRA and M/s CARE Ratings, respectively. The Company also got its short-term borrowing
programme rated, obtaining the highest rating of "IND A1+', ‘[ICRA] A1+'' and
‘CARE A1+ [A

OnePlus]', by the above-mentioned Credit Rating Agencies.

International



As on 31st March, 2024, HUDCO, for its International Borrowing Programme, continued to
enjoy International Credit Rating of ‘Baa3' with Stable outlook and ‘BBB-' with
Stable outlook, respectively, from Moody's and FITCH, International Credit Rating
Agencies. Both the assigned ratings are of investment grade and are at the Sovereign
ceiling and equivalent as that of our Country.


(vi) Cost of Borrowings


The overall weighted average cost of resources raised during the year was 7.10% p.a.
and for borrowings outstanding as on 31st March, 2024 is 7.63% p.a. (7.71% p.a. as on 31st
March, 2023). The weighted average incremental cost of borrowing through taxable bonds/
debentures, worked out to 4.83 bps lower than the Reuters Benchmark Yield of ‘AAA'
Rated CPSEs of equivalent tenor prevailing at different points of time when the borrowings
were made during the course of the year, thereby enabling achievement of Excellent
category MoU target for cost of borrowings. During Financial Year 2024, the Company
established its footprint in the international market through its maiden ECB borrowings
denominated in JPY 15 billion equivalent to USD 100 million at a cost of (Tona +.55
margin) with 5.29% being the hedged cost of the borrowings. The Company also raised
FCNR(B) borrowings to the tune of USD 480 million equivalent to Rs. 3,990.18 Crore, at an
average cost of 5.96%. As a result, the Company was able to deliver debt financing for
various Housing & Infrastructure projects, spread across the Country, at competitive
rates. The Company was able to achieve this feat through constant monitoring of the
markets, proper timing of its borrowings and appropriate selection of instruments.

HUDCO has hedged its foreign currency borrowings through the derivatives using Currency
Interest Rate Swap (CIRS) and Options structures. Further, HUDCO has adopted Hedge
accounting under IND AS 109 for its FCNR and ECB exposures from the initial date of
foreign currency borrowings.


(vii) Redemption of debt securities and repayment of loans (excluding the borrowings
availed and repaid during the same financial year)


The Directors are pleased to report that during the year under review, the Company
successfully redeemed bonds/ debentures and discharged its other debt obligations
amounting to Rs. 10,893.79 Crore in an efficientmanner, without a single instance of delay
or default in debt servicing. These included Bonds/ debentures valued at Rs.
7,553.85 Crore, Term Loans/ Short-Term loans from Banks and financial institutions worth
Rs. 3,326.27 Crore, foreign currency loans availed from Multilateral Agencies aggregating
to Rs. 12.00 Crore and public deposits of Rs. 1.67 Crore. The Company is set to honour
scheduled obligations towards redemption of Bonds and other long term debt obligations
amounting to around Rs. 16,600 Crore during the next fiscal.

The Company's internal generations are adequate to meet the repayment/ redemption
obligations. Surplus funds, if any, after meeting the repayment obligations are invested
prudently in the form of fixed deposits with banks. The Company continues to maintain its
impeccable track record of servicing its debt in time and there has never been a single
instance of default.


(viii) Unclaimed amount under HUDCO Bonds


An amount of Rs. 17,23,52,869/- (inclusive of interest amount of Rs. 9,73,85,869/-) in
respect of 3611 bondholders has remained unpaid as on 31st March 2024 as the same has not
been yet claimed by the bondholders. The details of amount remaining unclaimed are as
under:


  

    
Financial
    

    
Principal
    

    

    
Interest
    

    
Total Amount
  
  

    
year
    
Amount (Rs.)
    
No. of holders
    
No. of NCDs
    
Amount (Rs.)
    
No. of holders
    
No. of NCDs
    
(Rs.)
  
  

    
2023-24
    
7,49,67,000
    
276
    
72492
    
9,73,85,869
    
3335
    
1191090
    
17,23,52,869
  
  

    
2022-23
    
3,95,10,000
    
141
    
37035
    
9,42,19,791
    
3351
    
1124904
    
13,37,29,791
  


In respect of the above unclaimed Bonds, the bond holder(s) have been requested from
time to time through email/ letter etc. for submission of requisite documents for claiming
the amount of Principal/ Interest, as may be due in their respective case(s).

In respect of Bonds, the Company in terms of SEBI (Listing Obligations and Disclosure
Requirements) (Fifth Amendments) Regulations, 2021 dated 7th September, 2021, is presently
transferring principal and/or interest, or both (if any) which remains unclaimed for 7
years from the date of payment to Investor Education and Protection Fund (IEPF)
constituted in terms of Section 125 of the Companies Act, 2013.

During the Financial Year 2023-24, an amount of Rs. 74,48,233/- has been transferred to
IEPF on account of Bonds, as per the provisions of SEBI (Listing Obligations and
Disclosure Requirements) (Fifth Amendments) Regulations 2021 dated 7th
September, 2021.


(ix) Dematerialization of Bonds


During the Financial Year 2023-24, HUDCO has issued Unsecured, Taxable Bonds/
Debentures in dematerialized form only. With this, all Taxable Bonds/ Debentures, issued
by the Company and outstanding as on 31st March, 2024 are in dematerialized form only. The
Company has made necessary arrangement with NSDL and CDSL for issue of bonds in
dematerialized form. The Company has also appointed Registrar & Transfer Agents (RTA)
for maintaining the continuous electronic connectivity with NSDL/CDSL and investors.

Investors can deal in these Bonds/ Debentures as per the provisions of Depository Act,
1996, as amended and such deals are cleared & settled in recognised Stock Exchanges
subject to conditions specified by SEBI.


(x) HUDCO Public Deposit Scheme


HUDCO, being a Housing Finance Company registered with National Housing Bank (NHB), is
governed by the provisions of Housing Finance Companies Directions (NHB/RBI), relating to
Public Deposits. HUDCO had discontinued accepting / renewing Public Deposit under the
Public Deposit Scheme w.e.f. 1st July, 2019 and no fresh deposits were accepted/renewed by
HUDCO thereafter. Deposits of Rs.1.67 Crore were matured/paid to 49 depositors in the
Financial Year 2023-24. The total amount outstanding under HUDCO Public Deposit Scheme was
Rs. 0.04 Crore from 4 depositors as on 31st March, 2024.


(xi) Unclaimed amount under HUDCO Public Deposit Scheme


As on 31st March, 2024, deposit(s) amounting to Rs. 6,95,978/- (inclusive of Principal
and Interest) from 14 depositors remains unclaimed.

In respect of unclaimed Deposits, the Deposit holder(s) have been requested from time
to time through email/ letters, etc., for submission of requisite documents for claiming
the unclaimed amount.

During the Financial Year 2023-24, an amount of Rs. 13,64,898/- remained unclaimed for
more than seven years from the date of maturity and was transferred to the ‘Investor
Education and Protection Fund' (IEPF), as per the provisions of the Companies Act, 2013
and rules made thereunder.


(xii) Deployment of Resources at the close of the year


At the close of the Financial Year 2023-24, the Total Resources of your Company stood
at Rs. 93,424.08 Crore. Out of this, Equity Share Capital amounted to Rs. 2,001.90 Crore,
Reserves & Surplus stood at Rs. 14,612.40 Crore, Loans from Financial Institutions,
Commercial Banks, Multilateral Institutions, Public Deposits and Market Borrowings through
Bonds and Commercial Paper accounted for Rs. 73,995.90 Crore, Deferred Tax Liabilities
(Net) amounted to Rs.1,228.45 Crore and Other Liabilities & Provisions stood at Rs.
2,813.88 Crore. These funds were deployed as Long/Short Term Loan & Advances of Rs.
91,365.05 Crore, Fixed Assets (net of depreciation) of Rs. 103.25 Crore (including Capital
Work-in-Progress, Intangible Assets under development and Intangible Assets), Investments
of Rs. 298.81 Crore, Cash & Bank Balances of Rs. 387.36 Crore andOther Assets of Rs.
1,269.61 Crore.


8. RISK MANAGEMENT IN HUDCO 



In compliance with the directions given by National Housing Bank, HUDCO has in place
Risk Management Policy and Operating Manualthroughwhichitreviewsandassesssignificantrisks
on a regular basis to ensure that there is a robust system of risk controls and
mitigation. Major risks identified for your Company, being in lending operations, are
credit risk, operational risk, liquidity risk, market risk, interest rate risk and foreign
currency risk, etc. Your Company has a well-structured robust Risk Management Policy and
Operating Manual in line with its objectives to address the various risks. In compliance
with the SEBI (LODR) Regulations, 2015, your Company has in place a Board level Committee
under the nomenclature ‘Risk Management Committee' (RMC) headed by a Non-Executive
Director, which reviews various decisions/recommendations of the three sub-committees
namely: - - Assets & Liabilities Management Committee (ALCO); - Credit Risk Management
Committee (CRMC); and - Operational Risk Management Committee (ORMC) Assets and
Liabilities Management Committee (ALCO) reviews the liquidity risks and ensures
management of Assets and Liabilities mismatches through liquidity gap analysis, interest
rate sensitivity analysis. The Assets Liabilities mismatch, if any, are being managed
through the committed Bank lines, within the permissible limits as per NHB guidelines.
During the year, 16 meetings of ALCO were held.


Credit Risk Management Committee (CRMC) oversees and ensures that the credit
policies are put in place and are consistently applied while appraising the proposal for
sanction of loan and for ascertaining the credit worthiness of the applicant/borrowing
agency. During the year, 4 meetings of the CRMC were held.

Operational Risk Management Committee (ORMC) oversees and ensures the mitigation
of operational risk both internal as well as external, like Technology risk, Employee
risk, Customer risk, Capital Asset risk and External risk, etc., to which your Company is
susceptible by establishing & strengthening internal control systems and procedures
and by providing adequate training to the employees. During the year, 2 meetings of the
ORMC were held. With the prudent policies and professional approach of the management,
HUDCO has been successful in mitigating various risks, briefly described as under: -a)
Operational Risk: To manage the operational risks both internal as well as external
associated with the operations of the Company like technology risk, employee risk, capital
asset risk, external risk, compliance risks viz. external fraud, legal risk, etc., your
Company has established a strong reporting and monitoring mechanism. The requisite
information on the Operational risk is obtained through quarterly reports of
‘Operational Risk Factors and Key Risk Indicators (KRIs) from Regional Offices/
departments which are further reviewed and analyzed for mitigation of operational risk. b)
Credit Risk: To manage credit risks associated with business, your Company has in
place a strong and effectivecredit appraisal mechanism containing comprehensive appraisal
techniques/ guidelines ensuring timely repayments of principal & interest amount. c)
Liquidity Risk: For management of liquidity effective Asset Liability Management risk,
your Company has System. The liquidity risk is being monitored with the help of liquidity
gap analysis. Further, the funds are mobilized at competitive rates through various
strategies viz. bonds, term loans, etc., and the mismatch in the Asset and Liabilities, if
any, are managed through the committed Bank lines. d) Market Risk: The various
market risks arising from fluctuations in interest rates and foreign currency exchange
rates are periodically reviewed by the Company. Further, based on cost of funds and market
scenario, the lending rates are determined. The interest rate risk is being monitored with
the help of interest rate sensitivity analysis under the Asset Liability Management
System. e) Foreign Currency Risk: The Company has a Foreign Currency Risk
Management policy for mitigation of risks associated with Foreign Currency fluctuations.
To cover the risks associated with exchange rate and interest rate, your Company has
entered into hedging transactions. As on 31st March, 2024, the total foreign currency
liabilities are USD 489.25 million (INR 4068.12 Crore) and JPY 15 billion (INR 826.35
Crore) and 98.89% of the foreign currency exchange rate risk is covered through hedging
instruments.


9. JOINT VENTURE, ASSOCIATE AND SUBSIDIARY COMPANY



As on 31st March, 2024, HUDCO has three Joint Venture(s) Companies, namely, Pragati
Social Infrastructure & Development Limited (PSIDL), Shristi Urban Infrastructure
Development Limited (SUIDL), Signa Infrastructure India Limited (SIIL) and Associate
namely Ind Bank Housing Limited (IBHL). Further, HUDCO does not have any subsidiary. HUDCO
had invested Rs. 2.14 Crore in the Joint venture Companies {PSIDL Rs. 0.13 Crore (26%),
SUIDL Rs. 2.00 Crore (40%) and SIIL Rs. 0.01 Crore (26%)}. HUDCO has decided to exit from
joint venture companies by invoking the exit clauses, as the performance of these joint
ventures was not found to be satisfactory. The Company is in the process of exiting from
these joint ventures, for which necessary steps are being taken. The investment in respect
of PSIDL and SIIL is being shown as Re. 1/- in HUDCO books while accounts of SUIDL are
being consolidated with HUDCO accounts. In the case of IBHL, an associate company, HUDCO
has investment of Rs. 2.50 Crore which constitutes 25% of paid-up capital in IBHL.
Presently, HUDCO is valuing its stake in IBHL at Re. 1/- only, since there is very limited
trading in the stock market. Reserve Bank of India vide letterdated10 of Registration th
October, 2023 has informed that Certificate (CoR) granted by National Housing Bank to IBHL
has been cancelled vide order dated 21st September, 2023 hence, IBHL is no longer an HFC. 


10. INTERNAL FINANCIAL CONTROL POLICY AND INTERNAL AUDIT


Your Company has adequate Internal Financial Controls (IFC) system for ensuring, the
orderly and efficient conduct of its business, adherence with the laid down policies and
procedures, safeguard of assets of the Company, prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records and the timely preparation
of reliable financial information commensurate with the operations of the Company. The
system also includes Risk Control Matrix and Process Flow Charts to depict the process to
initiate, authorize, process, record and report transactions; the points within the
process at which misstatements could occur; and control activities that are designed to
prevent or detect such misstatements, including providing greater transparency to
segregation of duties. The Chartered Accountant firm appointed for carrying out Risk based
Internal Audit are also reviewing and testing the operating efficiency of existing
Internal Financial Controls and . Being a continuous satisfactoryandworkingeffectively
process, appropriate steps have been taken for further strengthening the Internal
Financial Control Systems.

Internal Audit



Your Company has a separate Internal Audit Department and head Internal Audit directly
reports to the Chairman & Managing Director. In order to strengthen and streamline all
the auditable activities, Internal Audit Department of your Company has implemented Risk
Based Internal Audit framework in line with the RBI's guidelines on Risk Based Internal
Audit System.

During the year under review, Risk Based Internal Audit of all the Regional Offices and
various departments of Corporate Office was carried out both by inhouse Internal Audit
Team and outsourced Chartered Accountant firms in close coordination with Internal Audit
Department. Comprehensive Internal Audit at Regional Offices have been carried out Audit
observations are put up for consideration of the Audit
bytheCharteredAccountantfirms.Thesignificant Committee. Necessary action as per the
directions of the Audit Committee is taken by the Internal Audit Department. Directions
have also been issued to all concerned for adherence to the policies, guidelines and
procedures and for timely compliance of the Audit Observations.


11. INFORMATION TECHNOLOGY


HUDCO has been very keen to use power of digital technology not only for rising in its
business operation but also in secured environment maintaining transparency in line with
national agenda. HUDCO is known for its technology support apart from its financing
support. It has taken many new initiatives and progressive reforms to be in the segment of
leaders. The initiatives such as implementation of ERP, Information Storage & Security
Systems and implementation of e-Office have already been taken by HUDCO, which will
definitely enhance its operational efficiency. 


12. HUDCO – AN ISO 9001:2015 CERTIFIED COMPANY 


HUDCO is an ISO 9001:2015 certified Company, the certification is for its major
business processes covering Project and Retail Financing Services, Resource Mobilisation
for funding, Consultancy Services through the Head Officeand all Regional Offices. Human
Settlement Management Institute (HSMI) which is part of HUDCO is also certified Research
& Networking. HUDCO demonstrates a strong commitment towards continuous improvement,
emphasizing customer satisfaction and stakeholder engagement. The organization proactively
assesses risks, identifiesweaknesses, and mitigates threats. By optimizing resource
allocation, HUDCO aims to create new business opportunities while ensuring efficient
utilization of its resources. Various trainingprogramsareofferedto the officers at
Regional Offices, Corporate Office and HSMI to foster continual improvement.


13. HUMAN SETTLEMENT MANAGEMENT INSTITUTE 


Human Settlement Management Institute (HSMI) of HUDCO is involved in both Research
& Training activities in the urban sector. The Quality Management System of HSMI
complies with ISO 9001:2015. Cumulatively, HUDCO's HSMI through 1820 training programmes
from 1985-2024 and continues to provide hasbenefittedabout55,540officials training support
for professionals as well as a forum for interaction of administrators, professionals,
researchers, and others engaged with the issues of human settlement development. 


Training Activities 


Till Financial Year 2023-24, HSMI has provided training sponsored by Ministry of
External Affairs, GoI to 1258 overseas participants through 53 ITEC (Indian Technical
& Economic Cooperation) and 7 e-ITEC training programmes. HSMI has conducted 9
training programs, imparting training to 776 participants which included HUDCO officials
and other stakeholders on diverse subjects like ‘Recent Development in Loan Recovery
Mechanisms-Legal Aspects (SARFAESI, DRT, including OTS and IBS 2016)', ‘Programme on
Retail Finance for HUDCO officials - Including Bulk Loan', ‘Solutions to Plastic/
Pollution', ‘Cyber Hygiene and security' etc. HSMI has also conducted e-ITEC
programmes sponsored by the Ministry of External Affairs (MEA), Govt. of India, on
‘Decarbonising Habitat Programme- Meeting the Global Targets'. HSMI organised the 52nd
International Training Programme on "Housing for the Urban Poor- Policy, Planning and
Implementation- Indian Experience" under the ITEC Programme of Ministry of External
Affairs, Govt. of India for 28 delegates from 16 developing countries and the 53rd ITEC
training programme on "Realising the Right to Adequate Housing in the context of
Habitat III New Urban Agenda - Policies, Planning and Practices" for 24 delegates
representing 14 countries.


Publications


SHELTER, an ISSN-accredited publication of HUDCO's HSMI, was brought out twice in the
year, April, 2023 & October, 2023, on the themes of "G20- Agenda for Sustainable
Habitat" and "Resilient Urban Economies: Cities as Drivers of Growth and
Recovery" respectively. 


14. HUMAN RESOURCES 


HUDCO acknowledges that the success of any Company is possible only with a dedicated
and motivated workforce. As HUDCO became a ‘NAVRATNA' Company, substantial efforts
have been made to align human resources. Employee development is of paramount importance
of HUDCO. Your Company has also undertaken a review of its leadership competency model and
subsequently identified development interventions, such as Management Development Programs
(MDPs)/ trainings, to develop potential leaders within the Company. As on 31st March,
2024, HUDCO has a workforce of 621 employees which includes 192 women employees which
constitutes 30.91% of its total strength. Women representations have gone across various
hierarchical levels. HUDCO has been complying with all the directives and guidelines
issued by the Government of India regarding reservation for SC/ST/OBC/PwD/ Ex-Servicemen/
EWs. 


15. VIGILANCE 

Corporate Vigilance Department is working as per the mandate of Central Vigilance
Commission (CVC) taking proactive approach to focus on preventive vigilance and taking
prompt action on complaints/ irregularities noticed. Vigilance Awareness Week was observed
by the Corporation from 30th October to 5th November, 2023 in the Head Office as well as
at all the Regional Offices During the week, various programmes were organized Corporate
Office and at the premises of 21 Regional Offices throughout the country. The programmes
were theme centric, declared by the CVC i.e., ‘Say no to corruption; commit to the
Nation'.


16. OFFICIAL LANGUAGE 

During the year, your Company has taken various initiatives for the progressive use of
Hindi in official work of HUDCO. Implementing the Official Language Policy, HUDCO
celebrated ‘Rajbhasha Fortnight' in the month of September, 2023 in its Corporate
Office and Regional Offices the country. Rajbhasha Fortnight programme began with the
inaugural function of All India Rajbhasha Conference organized at Pune (Maharashtra) on 14th
September, 2023. During the Rajbhasha Fortnight programme various competitions and
workshops were organized during the tenure.

During the period under review, Third Sub-Committee of Hindi Pakhwara Committee
of Parliament on Official Language inspected

HUDCO's Chandigarh, Raipur, Patna, Ranchi, Mumbai, Jaipur and Ahmedabad Regional
Offices. It is also referential to mention that the Parliamentary Committee found the
excellent implementation of Official Language Policy in Regional Offices. During the year,
HUDCO has received ‘Rajbhasha Kirti Puraskaar' (First Prize) at national level for
the year 2022-23 in a function held at Pune, (Maharashtra) on 15th September,
2023.


17. COMPLIANCES OF VARIOUS ACTS/ GUIDELINES


Disclosure under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act,


2013


An Internal Complaints Committee to examine the cases related to sexual harassment is
in place in HUDCO. This Committee is headed by a senior women officer of the Company for
redressal of complaints, if any, related to sexual harassment as per Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Sexual harassment,
in any form, is a misconduct under HUDCO (Conduct, Discipline and Appeal) Rules. There is
no complaint pending at the beginning of the year and no complaint related to sexual
harassment was received during the year.


Public Grievance Redressal Mechanism of HUDCO


HUDCO is attending grievances received via email / letters, National Housing Bank
Grievance Registration & Information Database System (GRIDS) portal and Centralized
Public Grievance Redress and Monitoring System (CPGRAMS) Portal. HUDCO has grievance
redressal mechanism on pan India basis. The first level officers are Customer Relation
Officer designated in each of its Regional Offices. After the first level channel, the
petitioner may raise the grievance to Regional Head. The petitioner may escalate the
grievance at Grievance Redressal Officer Grievances are also examined at Director
(Corporate Planning) level at Corporate Office who is designated as Appellate Authority.
Whom to contact list for Grievance Redressal Mechanism of HUDCO (Escalation Matrix), at
pan India basis, is available at HUDCO Website.

Implementation of Micro, Small & Medium Enterprises (MSME) Policy



The Government of India, Ministry of Micro, Small & Medium Enterprises (MSME), has
advised Central Ministry/ Department CPSEs that 25% of overall annual procurement, be
procured through MSMEs, 4% of overall procurement through MSEs, owned by SC/ST and 3% of
overall procurement from owned by MSME women entrepreneurs. During the financial year
2023-24, HUDCO has made total procurement of Rs. 19.69 Crore.

In compliance of the Public Procurement Policy for Micro and Small Enterprises, issued
by Government of India vide Micro and Small Enterprise (MSEs) Order, 2012, during the
Financial Year 2023-24 HUDCO has made procurement amounting to Rs. 15.11 Crore from MSMEs,
constituting 76.72% of its total annual procurement inclusive of 4.23% from MSEs owned by
SC/ST entrepreneurs amounting to Rs. 0.8346 Crore and 4.70% from Women Entrepreneurs
constituting Rs. 0.9276 Crore. HUDCO has also made all payments due to MSMEs within the
stipulated period, i.e., within 45 days and there has been no delay.


Right to Information Act 

RTI Act is implemented in its true letter and spirit in HUDCO and RTI Cell of HUDCO
functions relentlessly to adhere to the various provisions/timelines mentioned therein,
towards achieving the objective of complete transparency in all the areas of functioning.

The transparency Audit of RTI, conducted under the aegis of Central Vigilance
Commission (CVC) for 2022-23, has accorded HUDCO 87% score. All the Central Public
Information Officers sensitized on various amendments and notices received from Central
Information Commission/Ministry of Housing and Urban Affairs/Department of Public
Enterprises etc. from time to time for a 100% implementation of this Act. It is also
noteworthy to mention here, that there was no penalty imposed or stricture or adverse
remark on HUDCO with regard to RTI during the period under review.


18. DIRECTORS' RESPONSIBILITY STATEMENT


As per requirements of Section 134(5) of the Companies Act, 2013, your Directors
confirm that: a) in preparation of the Annual Accounts, the applicable Accounting
Standards have been followed and no material departures have been made from the same; b)
such Accounting Policies have been selected and applied them consistently and made
judgments and estimates that are reasonable and prudent to give a true and fair view of
the State of Affairs of the Company at the end of the Financial Year and of the Profit of
the Company for the Financial Year under review; c) proper and sufficient care has been
taken for the with Provisions of Companies Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities; d) the Annual
Accounts have been prepared on a ‘going concern' basis; e) the Company has laid down
Internal Financial Controls to be followed and such internal Financial Controls are
adequate and were operating effectively; and f) proper systems have been devised to ensure
compliance with the provisions of all applicable laws and such systems were adequate and
operating effectively.


19. MANAGEMENT DISCUSSION & ANALYSIS REPORT 


The Management Discussions & Analysis Report, stipulated in terms of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE guidelines,
for the year ended 31st March, 2024, is annexed and forms part to the Directors' Report.


20. CORPORATE GOVERNANCE 


The Corporate Governance Report as stipulated under Regulation 34(3) of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations,2015andDPEguidelines,togetherwith certificatefrom M/s VAP &
Associates, Company Secretaries in Practice, on compliance with the Corporate Governance
norms is annexed and forms part to the Directors' Report.


21. BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT


The Business Responsibility & Sustainability Report, as stipulated under SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed and forms
part to the Directors' Report.


22. DIRECTORS AND KEY MANAGERIAL PERSONNEL


During the year under report, following changes took place in the composition of the
Board of Directors:

Chairman & Managing Director 



Ministry of Housing and Urban Affairs (MoHUA), Government of India, vide its order
dated 27th March, 2023 has assigned the additional charge of the post of Chairman &
Managing Director (CMD), HUDCO to Shri Kuldip Narayan, JS (HFA), MoHUA, for a period of 6
months with effect from the date of his assumption of charge of the post, or till a
regular incumbent join the post, or until further orders, whichever is the earliest. Shri
Narayan has assumed the charge of the post of CMD, HUDCO with effect from 27th March, 2023
(F/N). Further, MoHUA vide order dated 25th September, 2023 has extended the
additional charge of the post of Chairman & Managing Director, HUDCO to Shri Kuldip
Narayan for further period of six months with effect from 27 th September, 2023 or till
appointment of a regular incumbent to the post or until further orders, whichever is the
earliest. Extension was subject to approval of the Appointment Committee of the Cabinet
(ACC). The MoHUA, vide order dated 16th October, 2023 conveyed the approval of ACC for
period of three months with effect th September, 2023 till appointment of a regular
incumbent to the post or until further orders, whichever is the earliest.

MoHUA, vide order dated 16th October, 2023 has appointed Shri Sanjay Kulshrestha as the
Chairman & Managing Director, HUDCO for a period of five years with effect from the
date of his assumption of charge of the post, or until further orders, whichever is the
earliest. Shri Sanjay Kulshrestha has assumed the charge of the post of CMD, HUDCO with
effect from 16th October, 2023 (A/N).


Part-time Official (Government) Director


MoHUA, Government of India vide order dated 18th October, 2023 has conveyed the
appointment of Shri Kuldip Narayan, Satinder Pal Singh I.A.
.,JointSecretary(HousingforAll),MoHUA,GoIasPart-timeOfficial on the Board of HUDCO, with
immediate effect until further orders. In compliance with the provisions of the Companies
Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
the Board recommends appointment of Shri Kuldip Narayan, as Part-time OfficialDirector
(liable to retire by rotation), as Part-time Official Director for approval of the members
at the ensuing Annual General Meeting on the same terms and conditions as approved by the
President of India.

As per requirements of Section 152 of the Companies Act, 2013 [including any statutory
modification(s) or re-enactment(s) thereof, for time being in force, read with the
applicable rules, as amended] and Articles of Association of the Company, Shri Sanjeet
(DIN: 09833776), Part-time Official Director being longest in office among the Directors
since his last appointment, is liable to retire by rotation and being eligible, offers
himself for re-appointment at the ensuing Annual 

General Meeting. The Board recommends re-appointment of Shri Sanjeet, as Part-time
Official Director for approval of the members at the ensuing Annual General Meeting on the
same terms and conditions as approved by the President of India.


Declarations of Independence by Non-official (Independent) Directors


During the year, pursuant to the provisions of Section 149(6) of the Companies Act,
2013 and Regulation 16(1)(b) of the SEBI(LODR) Regulations, 2015, all the Non-official
(Independent) Directors, had given their declarations as to their Independence. Based on
the confirmation received from Directors, none of them are disqualified for being
appointed/ reappointed as directors in terms of Section 164 of the Companies Act, 2013 and
other applicable laws, if any and are not related to each other.


After the closure of the Financial Year


Shri D. Guhan, (DIN: 06757569) Director (Finance) & Chief Financial Officer has
been superannuated from the services of HUDCO on 31st May, 2024.

The Board has appointed Smt.
RevaSethi,ExecutiveDirector(Finance)asChiefFinancialOfficeron 28 th June, 2024 after
superannuation of Shri D. Guhan from the services of HUDCO on 31st May, 2024.

MoHUA, vide order dated 12th August, 2024 has appointed Shri Daljeet Singh Khatri (DIN:
06630234) as Director (Finance), HUDCO for a period of five years with effect from the
date of his assumption of charge of the post, or till the date of his superannuation, or
until further orders, whichever is the earliest. Shri Daljeet Singh Khatri has assumed the
charge of the post of Director (Finance), HUDCO with effect from 14th August, 2024.


KEY MANAGERIAL PERSONNEL

The details of Key Managerial Personnel including changes occurred during the year
and thereafter are as under:


  

    
Sl. No. Name of Key Managerial Personnel
    
Designation
  
  

    
1. Shri Sanjay Kulshrestha
    
Chairman & Managing Director (from 16.10.2023) (A/N)
  
  

    
2. Shri Kuldip Narayan
    
Chairman & Managing Director (Additional Charge) (from
    27.03.2023 to 16.10.2023)
  
  

    
3. Shri Muniappa Nagaraj
    
Director (Corporate Planning)
  
  

    
4. Shri Daljeet Singh Khatri
    
Director (Finance) (from 14.08.2024)
  
  

    
5. Shri D. Guhan
    
Director (Finance) & Chief Financial Officer (Up to 31.05.2024)
  
  

    
6. Shri Harish Kumar Sharma
    
Company Secretary & Compliance Officer (Up to 30.09.2023)
  
  

    
7. Shri Ratna Prakash
    
Company Secretary & Compliance Officer (from 03.10.2023 to
  
  

    

    
26.02.2024)
  
  

    
8. Shri Vikas Goyal
    
Company Secretary & Compliance Officer (from 26.02.2024)
  
  

    
9. Smt. Reva Sethi
    
Executive Director (Finance) & Chief Financial Officer (from
    28.06.2024)
  


The Board placed on record its appreciation for the valuable services rendered by Shri
Kuldip Narayan, as the Chairman & Managing Director (Additional Charge), Shri Satinder
Pal Singh, as Part-time OfficialDirector, Shri D. Guhan as Director (Finance) and Shri
Banshi Lal Gujar, as Non-official (Independent) Director during their tenure with the
Company and extended a warm welcome to Shri Sanjay Kulshrestha as the Chairman &
Managing Director, Shri Kuldip Narayan as Part-time Official Director and Shri Daljeet
Singh Khatri as Director (Finance) on the Board of the Company.


23. SECRETARIAL AUDITORS & AUDIT REPORT


In compliance of the provisions of Section 204 of the Companies Act, 2013, VAP &
Associates, Company Secretaries, Secretarial Auditors have conducted Secretarial Audit for
Financial Year 2023-24 and have in their report confirms that the Company has complied
with the provisions of the Act, Rules, Regulations and Guidelines applicable to the
Company and there were no qualifications, reservations, or adverse remarks except certain
observations, which are self-explanatory. The Secretarial Audit Report is annexed and
forms part to the Directors' Report.


24. AUDITORS & AUDITOR'S REPORT 

As per section 139(5) of the Companies Act, 2013, the Statutory Auditors of your
Company are appointed by Comptroller and Auditor General of India (CAG). M/s A P R A &
Associates LLP, (Regd. no. DE2438), Chartered Accountants, New Delhi has been appointed as
Statutory Auditors of your Company for the Financial Year 2023-24 by the CAG. M/s A P R A
& Associates LLP, Chartered Accountants (FRN-011078N/N500064), New Delhi, the
Statutory Auditors had conducted the audit of the Financial Statements (both Standalone
and Consolidated) for the Financial Year 2023-24 and submitted their report thereon. The
comments of the Statutory Auditors on the Financial Statements along with Management reply
thereon are annexed and form part of the report. Notes on Financial Statement referred to
in the Auditors' Report are self-explanatory.

Comments of Comptroller and Auditor General of India (CAG)



CAG vide their letter dated 27th August, 2024 has given ‘NIL comments' on the
auditedfinancialstatements (both

Standalone and consolidated) for the Financial Year 2023-24 under Section 143 of the
Companies Act, 2013 and the same have been annexed and forms part of this report 


25. STATUTORY DISCLOSURES 


(i) Corporate Social Responsibility Committee 

In accordance with the provisions of the Companies Act, 2013, the Board of Directors of
the Company had constituted Corporate Social Responsibility Committee of Board. As on 31st
March 2024, the Committee consists of members comprising Shri M. Nagaraj, as Chairman of
the Committee and Shri Kuldip Narayan, Dr. Ravindra Kumar Ray, Dr. Siyaram Singh and Smt.
Sabitha Bojan as members of the Committee.

The CSR Policy and other information on CSR is available on HUDCO Website at:
http://www.hudco.org The ‘Annual Report on CSR activities for Financial Year 2023-24'
indicating details of expenditure to be incurred and expenditure incurred on CSR
activities during the Financial Year along with other information is attached with the
Director report.

During the Financial Year 2023-24, an amount of Rs. 45,56,93,333/- was to be incurred
on CSR activities, out of which 60% of the amount is required to be spent for undertaking
CSR activities related to Health and Nutrition' the annual theme identified by DPE for
the year.

During the Financial Year, the Company has spent a total amount of Rs. 46,84,58,407/-
including Rs. 27,23,20,347/- (including contribution of Rs. 15,00,00,000/- to
‘PMCARES Fund' and admin. expenses of Rs. 1,13,77,310/-) from the proposals approved
during the Financial Year 2023-24 and the balance amount of Rs. 18,33,72,986/- was
required to be transferred (however, Net amount of Rs. 11,93,14,683/- as available with
HUDCO was transferred due to Rs. 6,40,58,303/- disbursed to implementing agencies pending
Utilization) to the ‘Unspent CSR account' opened with a scheduled bank and shall be
utilized in accordance with CSR Amendment Rules 2021 under Companies Act, as in a few
proposals implementing agencies are in process of completion of formalities for execution
of works e.g. finalization of tender etc. and in other proposals the same is to be
utilized on achievement of required physical progress. Further, the balance amount of Rs.
19,61,38,060/- has been spent from the unspent CSR accounts opened for the projects
approved in 2022-23 and prior to 2021 (including contribution of Rs. 9,50,46,000/- to
‘PMCARES Fund' by reallocation of assistance approved earlier for other projects due
to closure/ curtailment etc.) in accordance with the amended CSR rules 2021.

Furthermore, out of the total amount spent as indicated above, Rs. 41,33,85,158/-
(including contribution to PMCARES Fund) has been spent on the projects related to Health
and Nutrition' the annual theme identified by DPE for the year. Under its CSR activities,
HUDCO has supported different proposals viz. Procurement of 4 Nos of Advanced Cardiac Life
Support (ALS) Ambulances in Goa, Setting up biobank/bio-repository using genomics and
advanced cell biology at NCBS Bangalore, Upgradation of Bronchoscopy System at
Chittaranjan National Cancer Institute, 2nd Campus, New Town, Kolkata and
Distribution of Aids & Assistive Devices to Senior Citizens & Persons with
Disabilities (Divyangjan) in various states by Artificial Limbs Manufacturing Corporation
of India (ALIMCO). HUDCO has also Contributed Rs. 100 Lakh to Sikkim State Disaster
Managing Authority, Gangtok, Sikkim (SSDMA) for Disaster management including relief,
rehabilitation, and reconstruction activities in Sikkim during flash floods in October,
2023.

Beside the above, CSR assistance was also provided for implementation of other projects
viz. Procurement of Medical Equipment's at IPGMER, Kolkata, Construction of Health
Sub-Centre at Arapati Mayai Leikai, Imphal, 

Manipur, Construction of Public Toilet cum Waiting Hall, Mussoorie, Uttarakhand,
Procurement of Pick-up trucks (05 nos.) for door-to-door waste collection, Dehradun,
Development of Children Park in Jagannathan Park in Barh, Patna, Bihar and Construction of
Public Amenity Building and Pilgrim Accommodation Block at Shri Kedarnath Dham,
Rudraprayag, Uttarakhand etc.

Further, an amount of Rs. 18,30,18,204/- being the unspent CSR budget of Financial Year
2022-23 was transferred to ‘PMCARES Fund' a fund specified in Schedule VII of the
Companies Act, 2013 on 30.09.2023 in accordance with details mentioned in the annual
report on CSR activities for Financial Year 2022-23. In addition to this, Rs.
1,93,66,000/- and Rs. 4,71,200/- was also transferred to ‘PMCARES FUND' and
‘Swachh Bharat Kosh' respectively, being the unspent CSR funds due to
closure/curtailment in the ongoing proposals of earlier years.


(ii) Board and its Committees


The details as to the composition of the Board and its various Committees, scope &
terms of reference, number of meetings held and attended by directors/members during the
year along with other particulars are annexed in the Corporate Governance Report, forming
part to this report;


(iii) Particulars of Loans, Guarantee, or Investments 

The necessary disclosures with respect to Loan made, Guarantee given or Securities
provided by the Company in its ordinary course of business have not been given, since,
provisions of section 186 of the Companies Act, 2013, are not applicable to your Company,
being a Housing Finance Company. The detail with respect to Investments made by the
Company forms part of the Financial Statements for the Financial Year 2023-24.

During the Financial Year, all the existing Related Party Transactions were on an arm's
length basis and were in the ordinary
courseofbusiness.Therearenomateriallysignificantrelated party transaction(s) made by the
Company, which may have a conflict with the interest arrangement entered into by the
Company as listed under section 188 of the Companies Act, 2013.


(iv) Annual Return


Pursuant to Section 92(3) and Section 134(3)(a) of the Companies Act, 2013, the Annual
Return as at 31st March, 2024 available on the website of the Company on the following
link:
https://hudco.org.in//Site/FormTemplete/frmTemp1PLargeTC1C_P.aspx?MnId=463&ParentID=391
(v) HUDCO being a Government Company, the provisions of Section 164(2) of the Act
in respect of disqualification of directors are not applicable to the Company in terms of
notification no. G.S.R.463(E) dated 5th June, 2015 issued by Ministry of Corporate
Affairs, Government of India; (vi) HUDCO, being a Government Company is exempted
from the provisions of Section 197 of the Companies Act, 2013 and Rules made there under
relating to managerial remuneration, hence, no disclosure is required to be made; (vii)
As per the statutory provisions, a listed Company is required to disclose in its Board's
Report, a statement indicating the manner in which formal annual evaluation of the
performance of the Board, its committees and individual Directors has been made and the
criteria for performance evaluation of its Independent Directors, as laid down by the
Nomination & Remuneration Committee. The Ministry of Corporate Affairs, Government of
India vide notification dated5 th June, 2015 has, inter-alia, exempted Government
companies from the above requirement, in case the Directors are evaluated by the Ministry
or Department of the Central Government which is administratively in charge of the
Company, as per its own evaluation methodology. Further, MCA vide notification dated July
5, 2017, also prescribed that the provisions relating to review of performance of
Independent Directors and evaluation mechanism prescribed in Schedule IV of the Companies
Act, 2013, is not applicable to Government companies.

Accordingly, HUDCO, being a government Company, is exempted in terms of the above
notifications, as the evaluation of performance of all members of the Board of the Company
is being done by the Administrative Ministry i.e., the Ministry of
HousingandUrbanAffairs,GoI. As per requirements of the SEBI (LODR) Regulations, 2015, the
performance of the Board as a whole and non-independent directors including Chairman &
Managing Director were evaluated by the Independent Directors in a separate meeting held
on 20.03.2024. The meeting was attended by all the Independent Directors.


(viii) The Company is compliant with the applicable Secretarial Standards issued by
Institute of Company Secretaries of India (ICSI); (ix) In compliance of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, and DPE

Guidelines on Corporate Governance, based on the affirmation received from Board
Members and Senior Management Personnel, declaration regarding compliance of Code of
Conduct made by the Chairman & Managing Director is annexed and forms part of the
Directors' Report. A copy of the Code is available on the website of the Company at
www.hudco.org.in


(x) In compliance with Regulation 25(10) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, your Company has obtained Directors and
Officers Liability Insurance Policy, ensuring adequate insurance coverage, covering all
the directors of the Company including Independent Directors, Key Managerial Personnel,
and Senior Officers against the risk of financial loss including the expenses pertaining
to defence cost and legal representation expenses arising in the normal course of
business. 


(xi) Energy Conservation, Technology Absorption and Foreign Exchange Earning
& Outgo.


Energy Conservation and Technology Absorption 


As HUDCO does not own any manufacturing unit/facility, there are no specific
application relating to conservation of energy and technology absorption. However, HUDCO,
being an energy conscious organization has taken various initiatives in the direction of
energy conservation on a continuous basis. 


Foreign Exchange Earnings and Outgo 


During the Financial Year 2023-24,foreignexchangeinflowswas Rs. ‘NIL' (previous
year Rs. 0.06 Crore) and foreign currency outflow was Rs. 12.84 Crore (previous year Rs.
2.51 Crore); (xii) There is no change in the nature of business of the Company
during the year; passed by the Regulators or (xiii) Therearenosignificant Courts or
Tribunals impacting the going concern status and operations of your Company in future;


(xiv) The Central Government has not prescribed the maintenance of cost records for
the products/services of the Company under the Companies (Cost Records and Audit)
Amendment Rules, 2014 prescribed by the Central Government under Section 148 of the
Companies Act, 2013. Accordingly, cost accounts and records are not required to be
maintained by the Company; (xv) HUDCO has not made any application under the
Insolvency and Bankruptcy Code, 2016 (31 of 2016), directly on Standalone basis during the
year; (xvi) The Company has not entered into one time settlement with Bank or
Financial Institutions during the year, hence, details of difference between amount of the
valuation done at the time of one-time settlement and the valuation done while taking loan
from the Banks or Financial Institution is not given. (xvii) During the year under
review the statutory Auditor's have not reported any case of fraud against the company by
its officers or employees under Section 143(12) of The Companies Act, 2013.


(xviii)Compliance Function


As per the requirements of the RBI/2022-23/24 Ref.No.DoS.CO.PPG./SEC.01/ 11.01.0005/
2022-23 dated 11th April, 2022, HUDCO has appointed Chief Compliance
Officer w.e.f., 29.09.2023.

HUDCO has established an independent compliance function headed by the Chief Compliance
Officer with direct reporting to the Chairman & Managing Director. HUDCO also has
compliance policy duly approved by its Board for ensuring effective monitoring and
supervision of the compliance function in accordance with requirements.


26. FUTURE OUTLOOK - MEDIUM AND LONG-TERM STRATEGIES


To realise the vision of a $5 trillion economy, the total capital expenditure in
infrastructure sectors in India during fiscals 2020 to 2025 is projected at about Rs. 143
Lakh Crore. The projects under urban infrastructure would include Atal Mission for
Rejuvenation and Urban Transformation, Smart Cities, MRTS, PMAY
programme,AffordableHousing, Jal Jeevan Mission, Pradhan Mantri Kisan Urja Suraksha Evam
Utthaan Mahabhiyan Yojana (PM-KUSUM), Revamped Distribution Sector Scheme (RDSS) etc.
HUDCO would have business opportunity in these areas.

In this context, the future outlook and medium and long-term strategies are the
following: i. Under Jal Jeevan Mission- ‘Har Ghar, Nal Se Jal' allocation of Rs.
98,418 Crore in Interim Budget of Financial Year 2024-25. ii. The Government of India has
launched ‘Swachh Bharat Mission-2.0' (SBM-2) with an allocation of Rs. 1.41 Lakh
Crore for five years from 2021 till 2026, to focus on safe sanitation, water harvesting
and recycling. Further, Government of India during the Interim Budget for Financial Year
2024-25 has allocated the Rs. 4246.23 Crore for this mission. iii. HUDCO will make all out
efforts to tap potential business for lending in Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) and Smart City projects; iv. Government of India recently has
announced the extension of Prime Minister Awas Yojana (PMAY) programme for construction of
3.0 Crore additional houses. HUDCO is approaching for lending under the mission as well as
for preparation of DPRs, consultancy services, channelizing the GoI subsidy under CLSS
vertical etc.

v. Green energy corridors or laying transmission lines for the evacuation of renewable
energy saw a 38 percent growth, from Rs. 434 Crore in Financial Year 2023-24 (RE) to Rs.
600 Crore in the Interim Budget 2024. This is 50 percent cumulative installed power
generation capacity from non- significant fossil fuel sources by 2030. Recently, the
Government of India has sanctioned new transmission projects worth Rs. 13,595 Crore to
evacuate 4.5 GW of renewable energy each from Rajasthan and Karnataka. vi. Government of
India has a mission of total capital expenditure on Green projects of Rs. 36.6 Lakh Crore
by 2030.

Accordingly, HUDCO is approaching various stakeholders for extending the business in
these areas and to support the overall growth of the Country.


27. STATUTORY AND OTHER INFORMATION REQUIREMENT

The particulars of annexure(s) forming part of the Directors' Report are as under:


  

    
Particulars
    
Annexure
  
  

    
Management Discussion & Analysis Report
    
1
  
  

    
Corporate Governance Report
    
2
  
  

    
Business Responsibility & Sustainability Report
    
3
  
  

    
Secretarial Audit Report
    
4
  
  

    
Annual Report on CSR Activities
    
5
  
  

    
Declaration of the Code of Conduct
    
6
  
  

    
Management Reply to comments of Statutory Auditors on Financial
    Statements
    
7
  
  

    
Comments of the Comptroller and Auditor General of India
    
8
  



28. ACKNOWLEDGEMENT 


The Board of Directors of your Company acknowledge its deep sense of appreciation for
the continuous support, guidance and cooperation extended by the Government of India,
especially the Ministry of Housing and Urban Affairs, Ministry of Rural Development,
Ministry of Finance, Reserve Bank of India, National Housing Bank, Ministry of Corporate
Affairs,Department of Public Enterprises, Regulatory/Statutory Authorities and various
other departments of the Central/ State Governments, Stock Exchanges, Depositories, Credit
Rating Agencies, Registrar & Transfer Agents, Debenture Trustee(s) and other agencies.

The Board of Directors also conveys its gratitude for the unstinting support and
cooperation given by the shareholders, bondholders, public deposit holders, Bankers,
Financial Institutions, Housing Boards, Development Authorities, Municipal/Local Bodies
and other stakeholders associated with the Company. The Board of Directors also
acknowledges the valuable suggestions and guidance extended by Comptroller & Auditor
General of India, Statutory Auditors, Secretarial Auditors, and other professionals
associated with the Company. The Board of Directors also take this opportunity to
acknowledge and appreciate the hard work and efforts put in by HUDCO employees at all
levels towards achievement of the all-round growth of the Company.