HAL Annual Report 2022

Hindustan Aeronautics Limited
59
TH ANNUAL REPORT
2021-22
Contents
Corporate overview Financial Statements
Standalone
03 Chairman’s Statement
06 Corporate Information 141 Independent Auditor’s Report
08 Board of Directors & Chief Executive Officers 162 Comments of the C & A G
13 Major Achievements and Events 164 Balance Sheet
18 Financial Highlights 166 Statement of Profit and Loss
22 Notice of 59th Annual General Meeting 168 Statement of Changes in Equity
170 Statement of Cash Flow
172 Significant Accounting Policies
180 Notes to Financial Statements

Statutory Reports
33 Board’s Report Consolidated
46 Annexures to Board’s Report 275 Independent Auditor’s Report
86 Management Discussion & Analysis Report 287 Comments of the C & A G
93 Corporate Governance Report 294 Balance Sheet
112 Business Responsibility & Sustainability Report 296 Statement of Profit and Loss
298 Statement of Changes in Equity
300 Statement of Cash Flow
302 Significant Accounting Policies
310 Notes to Financial Statements
Annual Report 2021-22 1

Vision
To be a global leader in the Aerospace
& Defence Industry
Mission
We are committed to deliver superior technology solutions to
the customers by leveraging our infrastructure and Design,
Manufacture & Service skills, for achieving business excellence
2 Hindustan Aeronautics Limited

Chairman’s Statement
Dear Shareholders, Rs. 5,08,650 Lakh. Our Order Book position stood at a healthy
Rs. 82,15,400 Lakh as on 31st March, 2022.
It is my privilege to extend a very warm welcome to you all for The Company has paid 1st & 2nd interim Dividend of Rs.14 per
the 59th Annual General Meeting of your Company. share and Rs. 26 per share respectively of Rs.10 each for the
Financial Year 2021-22, totalling to Rs.1,33,755 Lakhs. Further,
The past two years have been a period of intense action and the Board of Directors of the Company has recommended a
reflection. We have seen a global pandemic, geopolitical final dividend of Rs. 10 per share of Rs. 10 each for approval
tensions, supply chain disruptions and other public and private of shareholders. On approval of the Final Dividend by the
upheavals. As the situation improved, I believe we are standing shareholders, total cash outflow for payment of dividend
at the threshold of a period of great opportunity and growth. would be Rs. 167,194 Lakh.
The financial year 2021-22 was challenging for each one of us. During the year, the Company has produced 34 numbers of
During the second and third wave of COVID, your Company new Aircraft and Helicopters, covering LCA Tejas, Dornier Do-
had taken adequate preparatory measures and strict safety 228, ALH Dhruv and Light Combat Helicopter (LCH) in addition
protocols was in place, due to which the business activities of to the production of 80 New Engines and Accessories, at
the Company could continue as usual. its various Divisions. The Company has also overhauled 207
Aircraft / Helicopters and 506 engines during the year.
I take this opportunity to share the performance highlights
during the year and future outlook for the Company. Your Company is deeply dedicated towards manufacturing of
indigenous aircraft and helicopter under Atmanirbhar Bharat
Financial and Performance Highlights of the Year and to achieve greater milestones in coming years. In fact, out
of the 34 new platforms manufactured during the year, 30
In the financial year 2021-22, your Company recorded the are of indigenously designed and developed. As a continuous
highest ever turnover of Rs. 24,36,166 Lakh, experiencing pursuit towards greater self-reliance, imported LRUs, systems,
strong growth of 8% from the previous year’s Rs. 22,50,096 components etc fitted on indigenous platforms are being taken
Lakh. The Profit Before Tax (PBT) saw a growth of 22% from up for indigenization under various routes through in-house as
Rs. 4,27,738 Lakh to Rs. 5,23,115 Lakh while the Profit well as private industry involvement under Make I, Make II etc.
After Tax (PAT) increased by 57% from Rs. 3,23,945 Lakh to In FY 2021-22, a total of 1412 items have been indigenized.

Significant Achievements New Initiatives
Your Company has witnessed several significant achievements During the year, your Company has taken many new initiatives.
during the year, some of which are highlighted as under: Some of the major initiatives are as under:
• In a major boost to Atmanirbhar Bharat Mission, HAL − HAL has launched new platform design and development
has bagged a contract for production and supply of 15 programmes such as Combat Air Teaming System (CATS)
Light Combat Helicopters (LCH) on 30th March, 2022. Warrior, Hindustan Lead in Fighter Trainer HLFT-42, High
Altitude Pseudo Satellite (HAPS), Utility Helicopter-Maritime,
• The green field helicopter factory of HAL at Tumakuru is Deck Based Multi Role Helicopter (DBMRH).
in place, with stage 1 & stage 2 infrastructure facilities
at an investment of Rs. 47,637 Lakh by the company, to − HAL has signed an MoU with Rolls-Royce on April 9, 2021
take up manufacture of Light Utility Helicopters (LUH) to explore the potential opportunity of HAL to become a
and other future platforms with an initial capacity of 30 “Build to Print” supplier for the MT30 (Gas Turbine) package
helicopters per annum. for sales within the Indian market.
• The Company has completed the investment of Rs. − HAL has signed an agreement with Rolls-Royce on September
1,20,000 Lakh as part of UP Defence Industrial Corridor 14, 2021 for Make-in-India Adour engine parts to support
(UPDIC) towards enhancement of capacity & capability Rolls-Royce’s international defence customer base.
at Lucknow, Korwa and Kanpur Divisions of HAL and
Naini Aerospace Limited, a wholly owned subsidiary of − HAL and ZeroAvia entered into a development collaboration
HAL. agreement on 9th November, 2021 for hydrogen-electric
powertrain capable of flying the 19 seat Dornier 228 aircraft
• The Hindustan-228 aircraft, a civil version of Do-228 had up to 500 NM.
its first flight on 26th December, 2021 and attained Type
Certification from DGCA on 19th May, 2022. It is the first − HAL has signed an MoU with Max AeroSpace & Aviation
project Type Certified by DGCA in civil commuter role. Pvt. Ltd, Mumbai on 12th January, 2022 to explore business
opportunities for MRO of civil aircraft. Both HAL and
• As a major step towards civil operations, HAL signed a Max AeroSpace will focus on exploring the business for
lease agreement with Alliance Air Aviation Limited on components and engine / Auxiliary Power Units (APUs),
26th September, 2021 for the supply of two Civil Do-228 which is currently going outside India for maintenance.
aircraft for regional operations in Arunachal Pradesh,
aimed at giving boost to India’s Regional Connectivity − HAL has signed an MoU with Uganda Peoples Defence
Scheme (RCS). Commercial operations commenced with Forces (UPDF) on 3rd March, 2022 towards Co-operation for
the first flight on the Dibrugarh-Pasighat route on 12th Repair, Overhaul and maintenance, supply of spares etc for
April, 2022. Su-30 Mk2 of UPDF.
• In-line with Government’s vision to boost defence − HAL has signed an MoU with Safran Helicopter Engines
exports to friendly foreign countries, HAL has signed (SafranHE) on 14th March, 2022 for exploring business
contracts with Government of Mauritius (GoM) for opportunities in the area of Helicopter Engines, consistent
supply of one Passenger Variant Do-228 (PVD) on 10th with the goals of the Government of India’s “Atmanirbhar
September, 2021 and for one Advanced Light Helicopter Bharat” /Make in India initiative.
(ALH) Mk III helicopter on 19th January, 2022. Further,
− HAL has entered into a MoU with Israel Aerospace Industries
HAL also completed the production and delivered this
(IAI) on 4th April, 2022 to convert Civil (Passenger) aircraft
Do-228 PVD to Mauritius on 6th April, 2022 within a
to Multi Mission Tanker Transport (MMTT) aircraft in India.
record time of six months from contract conclusion.
Under the pact, HAL will convert pre-owned Civil (Passenger)
• The heaviest Semi-Cryogenic propellant tank ever aircraft into air refueling aircraft, cargo and transport
fabricated by HAL was delivered to Indian Space capabilities.
Research Organization (ISRO) on 5th October, 2021.
− Your Company had appointed M/s Boston Consulting Group
• The 83 LCA MK1A program attained a major milestone (BCG) for providing strategic advisory services for devising a
with the first flight of the prototype held on 20th May, business cum long term growth plan. The Consulting firm
2022. carried out the study and submitted a draft report which is
under review.
• HAL delivered the first set of hardware for Gaganyaan
mission (first unmanned mission) as well as the 150th Future Outlook
HAL made Satellite Bus-structure to Indian Space − Aerospace and Defence industry is passing through
Research Organization (ISRO) on 4th April, 2022. an exciting time in which companies are focusing on

technology advancements and operational efficiencies. It the Department of Public Enterprises (DPE) and SEBI Listing
is expected that advancements in UAVs, Aero-engines and Regulations except for the appointment of the requisite number
EHPA (Electric and Hybrid Propulsion Aircraft) technologies of Independent Directors. The Company has established
are going to set the future path for the industry, whereas Systems and Procedures to ensure that its Board of Directors
Industry-4.0, Additive Manufacturing, Digitalization, is well informed about the Policies of the Company, to enable
Artificial Intelligence, Augmented and Virtual Reality tools them to discharge their responsibilities and to enhance the
are going to be efficiency drivers. overall value of all stakeholders. We are constantly reviewing
the Policies and Procedures of the Company and updating
− Contributing to the “Atmanirbhar Bharat” mission, HAL them to ensure transparency in all aspects of the Company’s
has been consistently involved in developing an aerospace working.
ecosystem for achieving self-reliance in Defence. The
Company is also playing a role in capability development Corporate Social Responsibility and Sustainability
in the country and promoting employment generation in Development
Aerospace & Defense Sector by handholding the vendors
and suppliers. As always, your Company is committed to social responsibility.
We have undertaken various programmes and projects, towards
− While the Indian Defence market will continue to be a integrating our social and business goals in a sustainable
prime revenue source for HAL due to projects like LCA manner in line with schedule VII of the Companies Act, 2013.
Mk1A, LCH, LUH and HTT-40, we are preparing ourselves An amount of Rs 7,827 Lakh has been spent under CSR in the
to have differentiated products and services, required in Financial Year 2021-22 and Rs. 300 Lakh has been deposited in
the future, by making our systems more agile, effective the Unspent CSR Account against the CSR budget/ obligation
and cost efficient. The futuristic projects such as LCA MkII, of Rs.8,100 Lakh.
Twin Engine Deck Based Fighter (TEDBF), Advance Medium
Combat Aircraft (AMCA), Indian Multirole Helicopter Acknowledgement
(IMRH), Aero Engines etc., will ensure the technological Your Company will continue to pursue global standards, and I
lead of HAL in the years to come. am confident that the Company will achieve many milestones.
We hope to attain all round success with the continued support
− To boost the growth of the Company, HAL is focusing
and guidance of all our stakeholders.
on the International Market, Civil Aviation, Civil MRO,
UAVs and other diversified business opportunities through I take this opportunity to extend my sincere gratitude to the
indigenous efforts and business collaborations with Indian Department of Defence Production, Defence Acquisition
Private Industry/global OEMs. Council, Defence Finance, Department of Civil Aviation and
our valuable customers viz., the Indian Air Force, Army, Navy,
Research and Development (R&D) Coast Guard, Border Security Force, ISRO and other Global
Your Company has continued its efforts towards the Design Aviation Companies.
and Development of new platforms/ products / technologies
and activities to enhance its capability with a view to bring I also thank DGAQA, CEMILAC, Principal Controller of Defence
technological superiority to its products and to cope up with Accounts, Principal Director of Commercial Audit, C&AG,
the future technological challenges. These efforts have resulted Auditors, Bankers, Legal Advisors, Collaborators, Suppliers,
in major achievements such as successful demonstration of Shareholders and other Agencies and acknowledge their
deck based operations capability and integration of Medical contributions in our achievements.
Intensive Care Unit (MICU) etc on ALH MkIII, the capability I am grateful to my colleagues on the Board for their valuable
of IJT to carry out six turn spins, completion of the erect spin guidance and acknowledge the immense contribution and
certification flight trials on HTT-40, successful integration of dedication of the employees of the Company at all levels.
lithium-ion main battery following flight trial on HTT-40, use of
lithium-ion battery for military aviation is first in the continent. JAI HIND
Towards the progress of various R&D efforts, the company
has incurred a total expenditure of Rs. 1967 Crore in the year
2021-22, which is 8% of the turnover as against 7.50% of
turnover in the previous year.
Corporate Governance
Your Company always strives to attain the highest standard of
Corporate Governance practice. The Company has complied Place : Bengaluru R. Madhavan
with the Guidelines on Corporate Governance framed by Date : July 15, 2022 Chairman and Managing Director

Corporate Information
BOARD OF DIRECTORS (As on June 28, 2022)
Shri R Madhavan Shri Chandraker Bharti

Chairman & Managing Director (CMD) Joint Secretary (Aerospace)
Ministry of Defence
Shri Arup Chatterjee Govt. Nominee Director
Director (Engineering and R&D)
Dr. Tessy Thomas
Shri C B Ananthakrishnan Director General (Aeronautical System)
Director (Finance) & CFO Aeronautics Development Establishment (ADE)
Govt Nominee Director
Shri Alok Verma
Dr Divya Gupta
Director (Human Resources)
Independent Director
Shri Jayadeva E P Shri Deepak Abasaheb Shinde

Director (Operations) Independent Director
COMPANY SECRETARY
Shri G. V. Sesha Reddy

Executive Director
(Company Secretary)

Bankers M/s. S S B & Associates
Chartered Accountants, Bengaluru
State Bank of India
M/s. B.N. Subramanya & Co.,
Punjab National Bank
Indian Bank
M/s. P.K. Rungta & Co.,
Indian Overseas Bank
Bank of Baroda
Ms. P.V. Menon & Associates
Syndicate Bank
Union Bank of India
M/s. Badari Madhusudhan & Srinivasan,
Statutory Auditor Chartered Accountants, Bengaluru
M/s. Maharaj NR Suresh and Co.,LLP M/s. A P Kunjithaya & Co.,

Cost Auditor
Branch Auditors
M/s. GNV & Associates,
M/s. S Srivastava & Co., Cost & Management Accountants, Bengaluru
Chartered Accountants, Luknow
M/s. C V K & Associates Legal Advisor
Chartered Accountants, Mumbai
M/s. Sundaraswamy & Ramdas,
M/s. K. Prahlada Rao & Co., Advocates, Bengaluru
Chartered Accountants, Hyderabad
M/s. D N Dokania & Associates Tax Consultants
M/s. PricewaterhouseCoopers Private Limited,
M/s. Rajesh K Jhunjhunwala & Co., Bengaluru
Chartered Accountants, Cuttack
M/s. Abhijit Dutt & Associates M/s. BSR & Co. LLP,
Chartered Accountants, Kolkata Chartered Accountants, Bengaluru
M/s. P. L. Tandon & Co.,

Credit Rating Agencies
Chartered Accountants, Kanpur
M/s. ICRA Limited
M/s. Ganesan and Company
Chartered Accountants, Bengaluru M/s. CARE Ratings Limited
M/s. R Bupathy & Co.,
M/s. Sekharan Associates
M/s. A. Sachdev & Co.,
Chartered Accountants, Luknow
M/s. Suresh & Co.,

Board of Directors (as on June 28, 2022)
Shri R. Madhavan was appointed as Chairman and Managing Director (CMD) of the
Hindustan Aeronautics Limited (HAL) with effect from September 1, 2018. He is a graduate
in Mechanical Engineering from NIT, Raipur and also holds post graduate degree of M. Tech
from IIT Madras. He joined HAL as a Management Trainee (Technical) in July, 1982 and has
been associated with the company around 40 years.
Prior to his elevation as CMD of HAL, Shri Madhavan held the position of Executive Director,
Accessories Division at Lucknow. He spearheaded successful absorption of technology for
production of Su-30 Airframe & Engine accessories from raw material phase. During his
tenure, the division was awarded the best performing Division (Customer Services) award
in company-wide competition during January 2016.
With his rich and varied experience, Shri Madhavan has provided solutions related to intricate
Shri R. Madhavan technical problems and strategic issues. He has given valuable inputs as a member of Tri-
Chairman and Managing Director service committee for high altitude operation of Helicopters and had overseen successful
launch of export of Engine sets to USA while in Engine Division, Bangalore, which led to
considerable improvement in the Division’s process to meet the international standards.
He had also extensively contributed to GOI’s “Make in India” strategy by developing MSME
sector vendors for Aerospace Manufacturing and had set roadmap for enhancing self-
reliance & self-sufficiency through indigenization efforts for obsolescence management
and for developing alternate technology leading to product improvement & reduction in
cost. Under Shri Madhavan’s leadership, HAL has earmarked Indigenization as “Key Thrust
Area” and over a period has refined its internal machinery and policy for indigenisation
of components, accessories and systems required for manufacturing as well as repair &
overhaul of aircraft, engine and equipment.
Shri Madhavan in the capacity of Chairman of Aerospace & Aviation Sector Skill Council is
contributing immensely to meet the challenge of skill development. As part of Government
of India’s ambitious programme to encourage innovation, Shri Madhavan is appointed as
one of the Director of Defence Innovation Organisation (DIO) which is doing pioneering
work in providing impetus to technology start-ups in the country in Aerospace and Aviation
sector.
Shri Madhavan had also taken several e-initiatives, implementation of which have brought
in systemic changes, transparency & process improvements. Under his leadership, HAL
is embarking upon a major e-initiative called “Project Parivartan” in a journey to revive
company’s ERP system to increase operational efficiencies.
An avid reader and active in professional societies, Shri. Madhavan is a member of

Aeronautical Society of India. He is also a member of Governing Council of CMTI and
CSIR-NAL.

Shri Arup Chatterjee is a B.Tech in Mechanical Engineering from Jadavpur University and
has done M. Tech in Aircraft Production Engineering from IIT, Chennai. He has also done
MBA from IGNOU.
Shri Chatterjee joined HAL as 17th Batch Management Trainee in the year 1982. He had
held several key positions in the Company prior to his appointment as Director (Engg. and
R&D) w.e.f June 1, 2018.
Shri Arup Chatterjee has around 40 years of wide experience in Aerospace Industry. During
his career span, Shri Chatterjee has served in various Divisions of HAL. He was the head
of various departments in the field of Avionics Equipment required for Russian & Western
origin Aircraft platform, in Korwa Division, where he has served for 28 years. He has also
served in Kanpur Division for 4 years in the field of Air Frame Manufacturing, for Dornier,
Shri Arup Chatterjee Avro & UAV Projects.
Director (Engineering and R&D)
Further, he had served in Koraput Division of HAL, where he had immensely contributed in
various programmes / projects viz., Repair & Overhaul of R25, R29B & R33 engines for MiG
series fighter aircraft as well as Manufacture & repair/overhaul of AL31FP engines for Su-30
aircraft. Prior to his elevation to the post of Director (Engg. and R&D), he was the General
Manager of Aircraft Research & Design Centre.
He had successfully steered Completion of IOC for LCH (Army), Completion of IOC
for LUH (IAF & Army), Completion of 6 turn spin on HTT-40, FOC for Jaguar DARIN III
Upgrade, Operational Clearance for ALH Mk III for Indian Coast Guard and Indian Navy and
Reinitiating IJT project for spin trials.
Many new projects have been taken up under his leadership which have futuristic potential.
Some of them are Tailboom folding & 2-segmented blade folding on ALH, IMRH, 200kg
RUAV, LUH Civil, CATS, LCA Mk-IA, Avro Upgrade and major LRUs development for outlying
divisions.
Shri C B Ananthakrishnan was appointed as Director (Finance) & CFO of the Company
with effect from August 1, 2018. He is a Commerce Graduate and Post Graduate in
Business Administration from Madras University and is a fellow member of Institute of
Cost Accountants of India. He has also received management and leadership training from
Indian Institute of Management, Ahmedabad and Institut Aeronautique et. Spatiale (IAS)
Toulouse, France.
Prior to his appointment as Director (Finance), he was holding the post of Executive Director
(Finance) in Corporate Office of the Company and handling overall Financial Planning and
strategy, treasury management and taxation.
He joined HAL in 2004 and has over 35 years of work experience in both public and
private sectors with stints in merchant banking, pharmaceuticals, fertilizers and Aerospace
Shri C B Ananthakrishnan Industries. During his stints in Helicopter Division as Head of the Finance, he was
Director (Finance) & CFO instrumental in developing financial strategies and policies for pricing, cost control and
profit planning for achieving overall goals of the Company and also secured one of the
largest Helicopter Contracts for the Company valuing in excess of ` 14000 Crore. He was
instrumental for Conclusion of prices for Repair & Overhaul and Supply of Spares by 3rd
Pricing Policy Review Committee (PPRC), Conclusion of 73 ALH Contracts for Army and IN
& ICG and Implementation of Ind AS etc.
He has played a pivotal role during Initial Public Offering (IPO) and listing of the Company
shares during March 2018. He was instrumental in securing orders of 83 LCA MK IA and
15 LCH.

Shri Alok Verma was appointed as Director (Human Resources) of the Company w.e.f
January 1, 2020. Prior to his appointment as Director (Human Resources), he was holding
the post of General Manager (Human Resources - Employee Relations) of the Company.
He holds a Bachelor’s Degree in Science from Patna University and Post Graduate Degree
in Social Work. He also holds an LLB from Jiwaji University and a Post Graduate Diploma in
Computer Applications from Punjab Technical University.
Shri Alok Verma joined HAL as Chief Manager (Human Resources) at Nasik Division in
the year 2006. During his stint at Nasik, he took over the reins of the HR Function at HAL
Hyderabad wherein he was instrumental in transforming the face of Employee Management
Relations.
Shri Alok Verma Shri Alok Verma played a key role in accomplishing the tasks planned during the year which
Director (Human Resources) were targeted towards overall growth of HAL. His major contributions include Introduction
of scheme for providing Financial Assistance to the dependents of deceased employees;
Development of Succession Planning Dashboard; Talent Acquisition and relentless efforts
towards optimum utilization of manpower in HAL. Having started his career with National
Fertilizers Ltd. in November 1987, Shri Verma brings to the table, a rich and a diverse
experience of over three decades in the Human resources function.
Shri Jayadeva E. P. was appointed as Director (Operations) of the Company w.e.f June
10, 2022. Prior to his appointment as Director (Operations), he was holding the post of
General Manager, LCA Tejas Division, of the Company. He holds a bachelor’s degree in
Electrical Engineering from University Visvesvaraya College of Engineering, Bangalore and
did Masters from IIT Madras in Aircraft Production Engineering.
He joined HAL in 1987 as a Management Trainee, and has about 33 years of experience
in the areas of Manufacturing, Assembly, Overhaul, Upgrades, Customer support,
Indigenisation and other Management functions. He was instrumental in establishment of
Repair & Overhaul and Upgrade facility for Kiran, Hawk and Mirage Aircraft at Overhaul
Division. He was also instrumental in developing indigenously high value Ground Support
Equipment / Ground Handling Equipment.
He undertook the Product Quality enhancement initiatives and capacity augmentation
process for Light Combat Aircraft (LCA) to double the rate of production to 16 aircraft per
Shri Jayadeva E. P. annum.
Director (Operations)
Shri Jayadeva steered the finalization of 83 LCA MK1A Contract with IAF during the year
2021.
Shri Chandraker Bharti was appointed as Government Nominee Director of the Company
w.e.f May 15, 2018. He was also served as Government Nominee Director of the Company
from April 27, 2017 to February 28, 2018. He is an engineering graduate from Delhi College
of Engineering, joined the Indian Administrative Services in September 1996. He has also
acquired M.Sc degree in Public Management & Policy from London School of Economics &
Political Science, UK.
He has more than 25 years of experience in Civil Services and held various important
assignments, which include Additional Commissioner, Department of Sales Tax, Govt. of
NCT of Delhi; Director, Ministry of Commerce & Industry; Development Commissioner in
various Government Departments such as Agriculture, Finance & Planning, Industries &
Commerce, Information Technology, etc. in the Union Territory of Pondicherry. He had also
Shri Chandraker Bharti served for a short period at Health & Family Welfare and Environment & Forest Departments
Joint Secretary (Aerospace), of Govt. of NCT of Delhi.
Govt. Nominee Director

Dr. Tessy Thomas was appointed as Government Nominee Director of the Company
with effect from July 2, 2018. She is a Post-Graduate in Mechanical Engineering with
specialization in Guided Missiles from Institute of Armament and has also done MBA
in Operations Management from Indira Gandhi National Open University. She has been
awarded Doctor of Philosophy (Ph.D) in Missile Guidance by Jawaharlal Nehru Technological
University, Hyderabad.
Dr. Tessy Thomas, who is currently serving as Director General, Aeronautical Systems in
Aeronautical Development Establishment, Bangalore, has served more than 33 years in
DRDO. She had held multi-dimensional roles & responsibilities and had contributed in
various fields such as Guidance, Control, Inertial Navigation, Trajectory Simulation and
Mission Design. Dr. Tessy Thomas had held various key assignments in DRDO, which include
Project Director for AGNI-4 project, Project Director (Mission) for the long range AGNI-5
system, Director, Advanced Systems Laboratory, DRDO.
Dr. Tessy Thomas is the Chairperson of Board of Governors of the Indian Institute of
Science Education & Research, Thiruvananthapuram and Indian Society for Advancement
Dr. Tessy Thomas of Materials & Process Engineering, Hyderabad Chapter. Dr. Tessy Thomas is also a member
Director General in various other Professional Institutions and Societies related to Science, Technology and
Engineering.
(Aeronautical System), ADE,
Govt Nominee Director Dr. Tessy Thomas has been conferred with various prestigious Awards / Honours, the latest
being the “First Ladies” Award for First Missile Woman of India from the Hon’ble President
of India as Exceptional Woman who transcended barriers to be the First in their Fields on
January 21, 2018.
Dr. Divya Gupta has been appointed as Non-Official (Independent) Director on the Board of
our Company on December 28, 2021. She is a Doctor by profession and has more than
36 years of experience in handling corporate affairs being director in two companies, where
she involves herself in decision making process and playing a crucial role in increasing the
shareholders’ wealth.
She is also an active member of various social organisation where she immensely contributed
to the society especially for making women self-dependent and capable. She is a columnist
and keeps regularly writing in newspapers & magazines, on social issues.
Apart from various awards and accreditations she got in the past, she was recently awarded
with “Dr. Sorojini Naidu International Award for Best Working Women” during year 2021.
Dr. Divya Gupta
Shri Deepak Abasaheb Shinde has been appointed as Non-Official (Independent) Director
on the Board of our Company with effect from April 28, 2022.
Shri Shinde has done B.E (Civil) from Shivaji University, Kolhapur and M.Tech (Civil, Structural
Engg.) from IIT Madras.
After completing his post-graduation from IIT Madras in 1981, he worked in a family firm
Miraj Concrete Works where he executed various Irrigation pipeline projects. He has more
than 40 years’ of work experience in different field and has promoted various private
Ltd Companies during this period. He was also associated with Professional, Industrial,
Financial, Educational and Social Organizations in different capacity.
Shri Deepak Abasaheb Shinde


Chief Executive Officers (CEOs) (as on June 28, 2022)
Shri Sajal Prakash
Chief Executive Officer, Accessories Complex
Shri Sajal Prakash, Chief Executive Officer, Accessories Complex holds a degree of B. Tech
in Mechanical Engineering from HBTI, Kanpur, M. Tech in Aircraft Production Engineering
from IIT, Madras and has completed Leadership Development Program at IIM, Ahmedabad
and IAS Toulouse, France. He started his career in HAL as a Management Trainee (Tech.) in
the year 1986. During his career spanning over 35 years in HAL, he has worked in Transport
Aircraft Division – Kanpur, HAL Corporate Office and Helicopter Division, Bangalore before
taking charge as Chief Executive Officer of Accessories Complex w.e.f September 1, 2019.
Shri Amitabh Bhatt

Chief Executive Officer, Bangalore Complex
Shri Amitabh Bhatt, Chief Executive Officer, Bangalore Complex holds a degree of B.Sc.
(Engg.) in Mechanical from Regional Engineering College (REC), Rourkela and a Post
Graduate Degree in Management. He has undergone ‘Leadership Development Program’,
at IIM-Ahmedabad and at Institute of Aerospace Studies, Toulouse, France. During his career
span of 34 years of professional experience in Marketing, Planning and Projects, both in
Private and Public Sector Company, he has worked in Fusion Engineering Products Ltd and
SKF India Limited, prior to joining to HAL as DGM (Marketing) in the year 2006. He has led
the team as Chief of Projects (LUH), for setting up an integrated new Helicopter Factory
at Tumkur. In addition to this, he led the Business Development activities of Helicopter
Complex, involving Sales & Marketing and Program Management. He was appointed as
Chief Executive Officer, Bangalore Complex w.e.f. February 1, 2020.
Shri Anbuvelan S
Chief Executive Officer, Helicopter Complex
Shri Anbuvelan S, Chief Executive Officer, Helicopter Complex, a graduate in Mechanical
Engineering from Algappa Chettiar College of Engineering, Karaikudi, Tamil Nadu and
holds a degree of M.Tech in Aircraft Production Engineering from IIT Madras and Post
Graduate Diploma in Business Management from XIME, Bangalore. He started his career
in HAL as Management Trainee (Technical) on July 21, 1986 and has been associated with
HAL for 36 years. He has expertise in end-to-end process optimisation, Manufacturing,
Quality and Supply Chain management. He was elevated to the position of Executive
Director, Helicopter Division in July 2020 before taking charge as Chief Executive Officer of
Helicopter Complex w.e.f October 1, 2020.
Shri Dibyendu Maiti

Chief Executive Officer, MiG Complex
Shri Dibyendu Maiti, Chief Executive Officer, MiG Complex, a graduate in Mechanical
Engineering from REC Durgapur and holds a degree of M.Tech in Aircraft Production
Engg from IIT, Madras and MS in Aeronautics & Space Technology from ENSAE, Toulouse,
France. During his career spanning over 36 years in HAL, he has worked at Nasik Division,
MiG Complex Office and Corporate Office at various positions in various capacities. He
contributed significantly towards indigenous development of highly complicated test rigs
for RD-33 engine accessories & BISON upgrade. He was instrumental in establishing the
ROH facilities of Su-30MKI Aircraft. During his tenure in Corporate Office, he played a key
role in activities such as ‘Perspective Plan 2021-2030’. He was appointed as Chief Executive
Office, MiG Complex w.e.f July 1, 2021.

Major Achievements
Advanced Light Helicopter Dhruv Mk III MR

successfully demonstrated its deck-operations
capabilities that include landing on deck, folding
of blades and storing the helicopter inside the
onboard hangar during April 2021.
HAL successfully integrated Medical

Intensive Care Unit (MICU) on board two
ALH MK III of Indian Navy deployed at INS
Hansa, Goa during May/June 2021.
The heaviest Semi-Cryogenic propellant tank (SC120- LOX) HAL successfully carried out ‘Ceremonial
ever fabricated by HAL was delivered to Indian Space First Flight’ of upgraded Dhruv Civil
Research Organization (ISRO) on October 5, 2021. Helicopter on November 26, 2021.

Major Events
Hon’ble Prime Minister, Shri Narendra Modi

handed over HAL produced indigenous Light
Combat Helicopter (LCH) to the Indian Air Force
(IAF) during the ‘Rashtriya Raksha Samarpan
Parv’ celebrations to mark the 75th year of India’s
independence, held at Jhansi on November 19,
2021.
HAL delivered second batch of two Dhruv Mk-

III Advanced Light Helicopters (ALH) to Indian
Coast Guard as part of 16 ALH Mk-III contract. The
helicopters were ferried out to Porbandar, Gujarat
on June 26, 2021.
In-line with Government’s vision to boost defence exports

to friendly foreign countries, HAL signed a contract with
Govt. of Mauritius (GoM) for export of one Advanced
Light Helicopter (ALH Mk III) for Mauritius Police Force on
January 19, 2022.
HAL handed over second interim dividend cheque

of Rs. 653.36 crores for the FY 2021-22 to the
Hon’ble Defence Minister, Shri. Rajnath Singh on
April 5, 2022.

Visitors
Hon’ble Vice President of India, Shri Venkaiah Naidu,

paid his maiden visit to HAL facilities accompanied by
Hon’ble Governor of Karnataka, Shri Thaawarchand
Gehlot, on August 20, 2021.
Shri. Ashwani Bhatia, Managing Director (CB & GM),

State Bank of India and Shri. Keshav Kumar T, Deputy
Managing Director (CCG-III), State Bank of India
visited Bangalore Complex and Helicopter Complex on
September 18, 2021
Air Chief Marshal V.R. Chaudhari, PVSM, AVSM,

VM, ADC, Chief of the Air Staff visited HAL
facilities on October 22, 2021 to review the
progress on various projects in hand.
Shri Ajay Bhatt, Hon’ble Minister of State for

Defence and Minister of State for Tourism visited
HAL facilities in Bengaluru on October 29, 2021.

New Business Initiatives
HAL signed an agreement with Rolls-Royce on September 14, 2021 for Make-in-India Adour engine parts
to support Rolls-Royce’s international defence customer base.
HAL signed a lease agreement with Alliance Air Aviation Limited for the supply of two Civil Do-
228 aircraft for regional operations in Arunachal Pradesh in Bengaluru on September 26, 2021.

Glimpse of CSR Activities
Hon’ble Defence Minister, Shri Rajnath Singh and

Hon’ble Chief Minister of UP, Shri Yogi Adityanath visited
the 255 bedded Covid Care Hospital setup by HAL at the
Haj House, Lucknow, Uttar Pradesh on May 11, 2021.
HAL supported the establishment of Centralized

Kitchen run by Akshaya Patra Foundation in Bengaluru,
Karnataka for providing mid-day meals to 5000
children per day in Government schools. The same was
inaugurated on August 18, 2021.
HAL has constructed New School Building &

Dormitory for students at Kasturba Gandhi Balika
Vidyalaya, Barabanki, Uttar Pradesh.
Model Schools equipped with Smart Class Rooms were

established at Koraput, Odisha towards Promotion
of school Education in rural areas by providing high
quality infrastructure support.

Financial Highlights
Sl. Particulars Units 07-08 08-09 09-10 10-11 11-12 12-13
No.
A Our Earnings
Sales - Inland ` Cr. 8284 9937 11252 12878 13856 13941
Export Sales ` Cr. 341 437 205 237 348 383
Total Sales ` Cr. 8625 10374 11457 13115 14204 14324
Changes in WIP & SIT& FG ` Cr. 166 1437 2033 3335 -1511 -122
Total ` Cr. 8791 11811 13490 16450 12693 14202
B Our Outgoings
Cost of Materials ` Cr. 4684 7636 9222 11772 5761 8008
Manpower Cost ` Cr. 1803 2543 1954 2246 2721 2446
Net Operating Cost ` Cr. 1686 887 985 765 2813 2383
Net Financing Cost ` Cr. -1664 -1732 -1525 -1341 -2107 -2316
Depreciation ` Cr. 118 142 166 169 177 184
Total ` Cr. 6627 9476 10802 13611 9365 10705
C Our Savings
Profit Before Tax ` Cr. 2164 2335 2688 2839 3328 3497
Provision For Tax ` Cr. 532 595 721 725 789 500
Profit After Tax For Appropriation ` Cr. 1632 1740 1967 2114 2539 2997
D We Own
Net Block ` Cr. 1080 1328 1466 1509 1556 1548
Other Assets (net) ` Cr. 5585 6816 8163 9722 11260 13397
Total ` Cr. 6665 8144 9629 11231 12816 14945
E We Owe
Equity ` Cr. 121 121 121 121 121 121
Reserves and Surplus ` Cr. 5163 6496 8003 9625 11218 13257
Shareholders’ Funds ` Cr. 5284 6617 8124 9746 11339 13378
Deferred Tax Liability ` Cr. 1379 1525 1505 1485 1477 1567
Long Term Borrowings ` Cr.
Short Term Borrowings ` Cr.
Total ` Cr. 6665 8144 9629 11231 12816 14945
F Cash and Bank Balance 19646 19745 18658 20099 21933 19128

13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
14688 15131 16140 17139 17970 19416 21016 22261 24194
440 490 446 465 314 405 212 240 168
15128 15621 16586 17604 18284 19821 21228 22501 24362
740 667 566 -501 -731 -1171 -638 -2457 -592
15868 16288 17152 17103 17553 18650 20590 20044 23770
9149 8882 9172 8692 8046 7664 8760 8740 9412
2685 3379 3274 3569 4299 4295 4764 4291 4590
2349 2215 2734 1873 2296 2645 2471 2197 4529
-2064 -1622 -1549 -880 -610 -14 347 239 -288
171 262 314 266 282 318 310 300 296
12290 13116 13945 13520 14313 14908 16652 15767 18539
3578 3172 3207 3583 3240 3742 3938 4277 5231
885 784 1209 967 1253 1396 1096 1038 144
2693 2388 1998 2616 1987 2346 2842 3239 5087
1582 1559 1694 1985 2391 2728 2882 2690 2535
15794 13996 10140 12462 8936 13463 16204 12687 16729
17376 15555 11834 14447 11327 16191 19086 15377 19264
482 482 362 362 334 334 334 334 334
14533 14412 10657 12175 9151 11741 12865 15034 18930
15015 14894 11019 12537 9485 12075 13199 15368 19264
1682 661 815 960 978 0 0 0 0
100 100 0 0 0
679 950 764 4016 5887 9 0
17376 15555 11834 14447 11327 16191 19086 15377 19264
16935 17671 13299 11117 6524 95 298 7166 14344

Sl. Particulars Units 07-08 08-09 09-10 10-11 11-12 12-13
No.
G Financial Statistics
Revenue from Operations (Net) ` Cr. 13124 14211 14328
Value of Production ` Cr. 8791 11811 13490 16450 12693 14202
Value Added ` Cr. 4107 4175 4268 4678 6932 6194
Dividend
Dividend ` Cr. 327 348 393 423 814 824
Dividend Tax ` Cr. 56 59 67 69 132 134
Total ` Cr. 383 407 460 493 946 957
Govt Share
Dividend ` Cr. 348 393 423 814 824
Dividend TAx ` Cr. 59 67 69 132 134
Total ` Cr. 407 460 493 946 957
Other than Government - share
Dividend ` Cr.
Dividend TAx ` Cr.
Total ` Cr. 0 0 0 0 0
R & D Expenditure ` Cr. 662 675 832 987 968 1949
EBITDA ` Cr. 2651 2905 3383 3654 4051 4098
Inventory ` Cr. 8615 10431 13660 17427 16153 17980
Trade Receivables ` Cr. 1486 1848 1858 2318 3917 5530
No. of Employees Nos. 34323 34822 33990 33681 32659 32644
No of Equity Shares Cr. 12.05 12.05 12.05 12.05 12.05 12.05
H Financial Ratios
Sales Per Employee ` 2512892 2979151 3370697 3893887 4349184 4387943
Value Added Per Employee ` 1196574 1198955 1255663 1388914 2122539 1897439
PBT to Sales % 25 23 23 22 23 24
Earnings Per Share ` 135.44 144.40 163.24 175.44 210.71 62.18
Dividend as %age of Equity % 318 338 382 409 785 199
(including Dividend Tax)
1. The Government of India, on 27/08/2020 – 28/08/2020 made an offer for sale (OFS) upto 15% of the paid up equity share
capital, out of its shareholding of 89.97%, in order to achieve the mandatory threshold of 25% minimum public shareholding
by a listed Company. Consequent to the OFS, the Government of India shareholding stands at 75.15%.
2. During the Financial Year 2017-18, GOI divested 3,35,32,320 Equity Shares of ` 10/- each equivalent to 10.03% of the paid
up capital of the Company. Consequently, the Company’s shares was listed on 28th March 2018.

13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22
15135 15730 16758 17950 18519 20008 21445 22882 24620

15868 16288 17152 17103 17553 18650 20590 20044 23770
6719 7406 7980 8411 9507 10986 11830 11304 14358
890 480 510 917 1076 662 1112 1003 1338

151 96 104 187 219 136 229 0 0
1041 576 614 1104 1295 798 1341 1003 1338
890 480 510 917 1048 596 1000 754 1006

151 96 104 187 213 122 206 0 0
1041 576 614 1104 1261 718 1206 754 1006
28 66 112 249 332

6 14 23 0 0
0 0 0 0 34 80 135 249 332
1083 1042 1191 1284 1612 1464 1232 1687 1967
4181 3987 4060 4273 4215 4936 5284 5694 6399
22361 24965 23998 21340 19375 19685 19454 16689 14364
6917 6108 4836 4220 6751 12459 11235 5670 4642
32108 31144 30300 29526 29035 28345 27384 26432 25412
48.20 48.20 36.15 36.15 33.44 33.44 33.44 33.44 33.44
4711598 5015733 5473927 5962130 6297179 6992768 7751972 8512788 9586809

2092625 2377986 2633663 2848508 3274259 3875816 4320041 4276634 5650087
24 20 19 20 18 19 19 19 21
55.87 49.54 41.45 72.35 56.15 70.16 84.99 96.88 152.11
216 120 170 305 388 239 401 300 401
3. The Company has bought back 2,71,12,500 Equity Shares of ` 10/- each on 19th Dec 2017. The effect of buy-back is
considered for the purpose of calculation of Earnings Per Share.
4. The Company has bought back 12,05,00,000 Equity Shares of ` 10/- each on 30th March 2016. The effect of buy-back is not
considered for the purpose of calculation of Earnings Per Share, as there is no significant change in value of the same.
5. The Company has issued 36,15,00,000 Equity Shares as Bonus Shares on 7th Feb 2014.

Notice of 59th AGM
NOTICE is hereby given that the 59th Annual General Meeting Fifty Thousand Only) excluding applicable Tax payable to
(AGM) of Hindustan Aeronautics Limited will be held on M/s GNV & Associates, Cost Accountants, Bengaluru, for
Monday, August 29, 2022 at 3.00 P.M. (IST) through Video conducting cost audit of the Company for the financial
Conferencing (VC) / Other Audio Visual Means (OAVM) to year 2022-23, as approved by the Board of Directors of
transact the following business:- the Company, be and is hereby ratified.”
ORDINARY BUSINESS: 7. To consider and if thought fit, to pass with or without

modification(s), the following resolution as Special
1. To receive, consider and adopt the audited financial Resolution for appointment of Dr. Divya Gupta, as Part–
statements (including audited consolidated financial Time Non-Official (Independent) Woman Director of the
statements) for the financial year ended 31st March, 2022 Company:
and the Reports of the Board of Directors and Auditors
thereon and Comments of the Comptroller & Auditor “RESOLVED THAT pursuant to the provisions of Section
General of India. 149, 150, 152 and other applicable provisions, if any,
of the Companies Act, 2013, and the Rules made
2. To confirm payment of Interim Dividend of ` 40/- per thereunder and Regulation 17(1C) & Regulation 25(2A)
equity share and to declare a Final Dividend on Equity of the SEBI (LODR) Regulations, 2015 as amended, Dr.
Shares for the financial year 2021-22. Divya Gupta, (DIN 00236773), who was appointed as a
3. To appoint a Director in place of Shri Alok Verma, Part–Time Non-Official (Independent) Woman Director
(DIN 08652280) who retires by rotation and being eligible, of the Company with effect from 28th December, 2021
offers himself for re-appointment. by the Board of Directors pursuant to the Letter F. No.
49016/02/2021-D(HAL-III) dated 28th December, 2021
4. To appoint a Director in place of Shri Chandraker Bharti of the DDP, MoD, be and is hereby appointed as Part–
(DIN 02599261) who retires by rotation and being eligible, Time Non-Official (Independent) Woman Director of the
offers himself for re-appointment. Company, not liable to retire by rotation, on the same
terms & conditions as determined by the Govt. of India.”
5. To fix remuneration of Statutory Auditors for the financial
year 2022-23. 8. To consider and if thought fit, to pass with or without
modification(s), the following resolution as Special
In terms of provisions of Section 142 of the Companies Resolution for appointment of Shri Deepak Abasaheb
Act, 2013, the remuneration of the Auditors shall be fixed Shinde, as Part–Time Non-Official (Independent) Director
by the Company in General Meeting or in such manner as of the Company:
the Company in General Meeting may determine. Hence,
it is proposed that the Members may authorize the Board “RESOLVED THAT pursuant to the provisions of Section
to fix the remuneration of the Statutory Auditors of the 149, 150, 152 and other applicable provisions, if any,
Company for the financial year 2022-23, as may deem fit. of the Companies Act, 2013, and the Rules made
thereunder and Regulation 17(1C) & Regulation 25(2A)
SPECIAL BUSINESS of the SEBI (LODR) Regulations, 2015 as amended, Shri
Deepak Abasaheb Shinde, (DIN 00288460), who was
6. To ratify the remuneration payable to the Cost Auditor
appointed as a Part–Time Non-Official (Independent)
appointed by the Board of Directors of the Company for
Director of the Company with effect from 28th April, 2022
the financial year 2022-23 pursuant to Section 148 and
by the Board of Directors pursuant to the Letter F. No.
all other applicable provisions of Companies Act, 2013,
8(23)/2021-D(Coord/DDP) dated 28th April, 2022 of the
by passing with or without modification(s), the following
DDP, MoD, be and is hereby appointed as Part–Time Non-
resolution as Ordinary Resolution:
Official (Independent) Director of the Company, not liable
“RESOLVED THAT pursuant to the provisions of Section to retire by rotation, on the same terms & conditions as
148(3) of the Companies Act, 2013 read with Rule 14 of determined by the Govt. of India.”
Companies (Audit and Auditors) Rules, 2014 and other
9. To consider and if thought fit, to pass with or without
applicable provisions of the Companies Act, 2013, the
modification(s), the following resolution as Ordinary
remuneration of ` 2,50,000/- (Rupees Two Lakhs and

Resolution for appointment of Shri Jayadeva E.P, as Listing Regulations”) and MCA Circulars, the 59th AGM of
Director (Operations) of the Company: the Company is being held through VC/ OAVM.
“RESOLVED THAT pursuant to the provisions of Section 3. The Company has enabled the members to participate at
152, 160 and other applicable provisions, if any, of the the 59th AGM through VC facility provided by the KFin
Companies Act, 2013, and the Rules made thereunder Technologies Limited (“KFintech”) (formerly known as
and Regulation 17(1C) of SEBI (LODR) Regulations, 2015 “KFin Technologies Private Limited”). The participation at
as amended, Shri Jayadeva E.P. (DIN 06761333) who was the AGM through VC shall be allowed on a first –come-
appointed as an Additional Director and designated as first –served basis.
Director (Operations) of the Company by the Board of
Directors with effect from 10th June, 2022 as per the Govt. 4. In compliance with the aforesaid MCA Circulars and SEBI
of India, MoD Letter F. No. 49013/01/2021-D (HAL-III) Circular, Notice of the AGM along with the Annual Report
dated 10th June, 2022 and who holds office until the date 2021-22 is being sent only through electronic mode to
of ensuing Annual General Meeting in terms of Section those Members whose email addresses are registered
161 of the Companies Act, 2013, and in respect of whom with the Company / Depositories. Members who requires
the Company has received a notice in writing from him physical copy of the Annual-Report, may request for the
under Section 160 of the Companies Act, 2013 signifying same. Members may note that the Notice and Annual
his intention to appoint him as a Director, be and is hereby Report 2021-22 will also be available on the Company’s
appointed as Director (Operations) of the Company on Website www.hal-india.co.in, websites of the Stock
terms and conditions as stipulated by the Government of Exchanges i.e BSE Limited and National Stock Exchange
India.” of India Limited at www.bseindia.com and www.nseindia.
com respectively and on the website of KFintech at https://
By Order of the Board of Directors evoting.kfintech.com at download section.
For Hindustan Aeronautics Limited
5. We desire members to support ‘Green Initiative’ by
receiving the Company’s Communication through email.
Members who have not registered their email addresses
and mobile number so far are requested to validate/
register their details with the Depository Participant in case
(G V Sesha Reddy)
of shares held in electronic form and with the Registrar viz.
Executive Director
KFintech in case the shares are held in physical form for
Company Secretary
receiving all communication including Annual Report and
Place: Bengaluru
other Notices from the Company electronically.
Date: July 15, 2022
6. Members who have not registered their e-mail address and
in consequence the Annual Report, Notice of e-AGM and
NOTES: e-voting instructions cannot be serviced, may temporarily
get registered their email address and mobile number with
1. An Explanatory Statement pursuant to Section 102 of the KFintech, by accessing the link: https://ris.kfintech.com/
Companies Act, 2013 (‘the Act’) relating to the Special clientservices/mobilereg/mobileemailreg.aspx
Business to be transacted at the Annual General Meeting
(‘AGM’) is annexed hereto. The Board of Directors have Members are requested to follow the process as guided to
considered and decided to include the Item No. 6, 7, 8 capture the email address and mobile number for sending
and 9 given above as Special Business in the forthcoming the soft copy of the notice and e-voting instructions along
AGM. with the User ID and Password. In case of any queries,
shareholder may write to einward.ris@kfintech.com.
2. Ministry of Corporate Affairs (MCA), vide its General
Circular No. 20/2020 dated May 5, 2020 and subsequent Kindly note that in case the shares are held in electronic
Circulars issued from time to time and General Circular form, the above facility is only for temporary registration
No 02/2022 dated May 5, 2022 read with relevant of email address for receipt of Annual Report, Notice of
circulars issued by the Securities and Exchange Board of e-AGM and the e-voting instructions along with the User
India (SEBI), from time to time ( hereinafter collectively ID and Password. Such Members will have to register
referred to as “Circulars)”, has allowed the Companies to their email address with their DPs permanently, so that all
conduct the AGM through Video Conferencing (VC) or communications are received by them in electronic form.
Other Audio Visual Means (OAVM) during the calendar
year 2022. In Compliance with the provisions of the In case of queries, Members are requested to write to
Companies Act, 2013 (“Act”), SEBI (Listing Obligations einward.ris@kfintech.com or call at the toll free number
and Disclosure Requirements) Regulations, 2015 (“SEBI 1800 309 4001.

7. In compliance with the provisions of section 108 of the 12. The following documents will be available for inspection
Act, the Rules made thereunder and Regulation 44 of by the Members electronically during the AGM. Members
the SEBI Listing Regulations, the Members are provided seeking to inspect such documents can send an email to
with the facility to cast their vote electronically, through investors@hal-india.co.in.
e-voting services provided by KFin Technologies Limited,
on all resolutions set forth in this Notice. Members (a) The Register of Directors and Key Managerial
attending the AGM through VC/ OAVM, who have not Personnel and their shareholding maintained under
already cast their votes by remote e-voting shall be able Section 170 of the Companies Act, 2013.
to exercise their vote through e-voting during the AGM.
(b) The Register of Contracts or arrangements in which
Members, who have cast their vote by remote e-voting
the Directors are interested, maintained under Section
prior to the AGM, may attend the AGM through VC/
189 of the Companies Act, 2013.
OAVM but shall not be entitled to cast their vote again.
The Procedure / Instruction for e-voting and joining 13. Brief profile of the Directors seeking appointment/ re-
AGM are provided in this notice. appointment as mandated under Regulation 36(3) of the
SEBI Listing Regulations forms part of the Notice.
8. The remote e-voting period commences on Thursday,
August 25, 2022 (9.00 A.M. IST) and ends on Sunday, 14. As per Regulation 40 (1) of SEBI Listing Regulations,
August 28, 2022 (5.00 P.M. IST). During this period, as amended, Securities of Listed Companies can be
Members of the Company, holding shares either in transferred only in dematerialised form w.e.f April 1,
physical form or in dematerialized form, as on the cut- 2019, except in case of request received for transmission
off date i.e. Monday, August 22, 2022, may cast their or transposition of Securities. In view of this and to
votes electronically. The remote e-voting module shall be eliminate all risks associated with physical shares and for
disabled by KFin Technologies Limited for voting thereafter. ease of portfolio management members holding shares in
Once the vote on a resolution(s) is cast by the Member, the physical form are requested to consider converting their
Member shall not be allowed to change it subsequently. holdings to dematerialised form.
9. Members attending the AGM through VC / OAVM shall 15. The Board of Directors of the Company in its 456th meeting
be counted for the purpose of reckoning the quorum held on June 28, 2022 has recommended a final dividend
under section 103 of the Act. of ` 10 per share of ` 10 each, subject to approval of
shareholders at its 59th AGM.
10. Pursuant to the provisions under section 105 of the Act,
a member is entitled to attend and vote at a General 16. The Company has fixed Monday, August 22, 2022 as the
Meeting, shall be entitled to appoint another person “Record Date” for determining entitlement of Members
as a proxy to attend and vote on his/her behalf and the to final dividend for the financial year ended March 31,
proxy need not be a Member of the Company. Since, this 2022, if approved at the AGM.
AGM is being held pursuant to the MCA Circular through
VC / OAVM, physical attendance of members has been 17. If the final dividend, as recommended by the Board of
dispensed with. Accordingly, the facility for appointment Directors, is approved at the AGM, payment of such
of proxies by the Members will not be available for the dividend subject to deduction of tax at source will be
AGM and hence the Proxy Form and Attendance Slip are made on or before September, 28, 2022 as under:
not annexed to this Notice. However, pursuant to Section
112 and 113 of the Act, the President of India or Body (i) To all Beneficial Owners in respect of shares held in
Corporate who are members are required to send a dematerialized form as per the data as may be made
scanned copy of its Board or Governing Body Resolution / available by the National Securities Depository Limited
Authorization etc., authorizing its representative to attend (“NSDL”) and the Central Depository Services (India)
the AGM through VC / OAVM on its behalf and to vote Limited (“CDSL”), collectively “Depositories”, as on
through remote electronic – voting (e-voting). The said record date.
resolutions / Authorizations can be forwarded to RTA on (ii) To all Members in respect of shares held in physical
evoting@kfintech.com or sent to the Company by email form after giving effect to valid transmission or
through its registered email address to investors@hal- transposition requests lodged with the Company as
india.co.in. on record date.
11. The Register of Members and Share Transfer Books of 18. Members are requested to address all correspondence
the Company will remain closed from August 23, 2022 including dividend related matters to the Registrar
to August 29, 2022 for the purpose of AGM (both days & Share Transfer Agent (RTA) of the Company i.e.
inclusive). KFin Technologies Limited (formerly known as “KFin

Technologies Private Limited”), Selenium Tower B, Plot 31 Depository Participants and not to the RTA/ Company,
& 32, Financial District, Nanakramguda, Serilingampally without any delay.
Mandal, Hyderabad -500 032, Telangana, Toll free number
1800 309 4001 e-mail Id: einward.ris@kfintech.com. III. In case of joint holders attending the meeting, only
such joint holder who is higher in the order of names
19. Members wishing to claim dividends that remain unclaimed will be entitled to vote.
are requested to correspond with the RTA mentioned
above or the Company Secretary of the Company or at 26. The Company has designated an exclusive e-mail ID called
investors@hal-india.co.in. investors@hal-india.co.in for redressal of shareholders’/
investors’ complaints/grievances. In case you have any
20. The Board has appointed M/s DPSP & Associates, Company queries/complaints or grievances, then please write to us
Secretaries, Bengaluru as the Scrutinizer to scrutinize the at the above e-mail address.
e-voting in a fair and transparent manner.
27. Since the AGM will be held through VC /OAVM, the Route
21. The results of the above resolutions shall be declared Map is not annexed in this AGM Notice.
within 2 working days from the conclusion of the AGM of
the Company and the Resolutions will be deemed to be EXPLANATORY STATEMENT PURSUANT TO SECTION 102
passed on the date of the AGM, subject to receipt of the OF THE COMPANIES ACT, 2013.
requisite number of votes in favour of the resolutions. Item No. 6 – Ratification of Remuneration to Cost
22. The results of the voting declared along with the Auditors for FY 2022-23
scrutinizer’s report will be published on the website of the The Board, on the recommendation of the Audit Committee,
Company (www.hal-india.co.in) and on website of RTA has approved in its 456th meeting held on June 28, 2022, the
(https://evoting.kfintech.com) within 2 working days from appointment of M/s GNV & Associates, Cost Accountants,
the conclusion of the AGM and the same shall also be Bengaluru, at a remuneration of ` 2,50,000/- (Rupees Two
simultaneously communicated to the BSE Limited and the Lakh Fifty Thousand only) excluding applicable Tax to conduct
National Stock Exchange of India Limited. the Cost Audit of the Company for the financial year 2022-23.
23. In terms of Section 72 of the Companies Act, 2013, In accordance with the provisions of Section 148 (3) of the
nomination facility is available to individual shareholders. Companies Act, 2013 read with Rule 14 of Companies (Audit
Members holding shares in physical form may nominate a & Auditor Rules), 2014, the remuneration payable to the
person in respect of all the shares held by them whether Cost Auditor is required to be ratified by the members of the
singly or jointly. Members who hold shares in individual Company.
name are advised to avail nomination facility by filing
their own interest. Blank form can be obtained from RTA None of the Directors, Key Managerial Personnel of the
on request. Members holding shares in dematerialised Company or their relatives is in any way, concerned or
form may contact their respective DPs for registration of interested, financially or otherwise, in the resolution.
nomination.
The Board of Directors recommends the Ordinary Resolution
24. Pursuant to Section 139(5) read with Section 142 of the for your approval.
Companies Act, 2013, the Auditors of a Government
Company are appointed or re-appointed by the Item No. 7 –Appointment of Dr. Divya Gupta, as Part–
Comptroller and Auditor General (C&AG) of India and Time Non-Official (Independent) Woman Director of the
their remuneration is to be fixed by the Company in the Company:
AGM. The members may authorise the Board to fix an
Dr. Divya Gupta (DIN 00236773), was appointed as a Part-Time
appropriate remuneration of Auditors for the year 2022-
Non Official (Independent) Woman Director of the Company
23.
with effect from December 28, 2021 pursuant to the MoD
25. Members are requested: letter F. No. 49016/02/2021-D(HAL-III) dated December 28,
2021.
I. To quote their Folio/DP & Client identification No. in
all correspondence. Pursuant to the provisions of Section 149, 150, 152 and other
applicable provisions, if any, of the Companies Act, 2013, and
II. To notify immediately any change of their address the Rules made thereunder and Regulation 17(1C) & Regulation
and bank particulars to the RTA or the Company, in 25(2A) of the SEBI (LODR) Regulations, 2015 as amended, the
case shares are held in physical form and in case their appointment of Independent Director(s) has to be approved
shares are held in dematerialised form, information at the meeting of shareholders of the Company by way of
should be passed on directly to their respective Special Resolution. Therefore, approval of the shareholders is

sought for appointment of Dr. Divya Gupta, as Independent MoD letter F. No. 8(23)/2021-D(Coord/DDP) dated April 28,
Director on the same terms and conditions as determined by 2022.
the Government of India. Dr. Divya Gupta, if appointed as an
Independent Director, will not be liable to retire by rotation Pursuant to the provisions of Section 149, 150, 152 and other
under Section 152 of the Act. applicable provisions, if any, of the Companies Act, 2013, and
the Rules made thereunder and Regulation 17(1C) & Regulation
Dr. Divya Gupta has furnished declaration of independence as 25(2A) of the SEBI (LODR) Regulations, 2015 as amended, the
specified in Section 149 of the Act and not disqualified from appointment of Independent Director(s) has to be approved
being appointed as a Director in terms of Section 164 of the at the meeting of shareholders of the Company by way of
Companies Act, 2013. Special Resolution. Therefore, approval of the shareholders
is sought for appointment of Shri Deepak Abasaheb Shinde,
Born on May 28, 1965, Dr. Divya Gupta has done MBBS and as Independent Director on the same terms and conditions as
DGO. She has received training at Infertility Cewer Bombay in determined by the Government of India. Shri Deepak Abasaheb
the field of infertility. Shinde, if appointed as an Independent Director, will not be
liable to retire by rotation under Section 152 of the Act.
Dr. Divya Gupta has more than 36 years of experience in
handling corporate affairs being director in two companies, Shri Deepak Abasaheb Shinde has furnished declaration of
where she involves herself in decision making process and independence as specified in Section 149 of the Act and not
playing a crucial role in increasing the shareholders’ wealth. disqualified from being appointed as a Director in terms of
Section 164 of the Companies Act, 2013.
She is also an active member of various social organisations
where she immensely contributed to the society especially for Born on October 5, 1957, Shri Shinde has done B.E (Civil) from
making women self-dependent and capable. She is a columnist Shivaji University, Kolhapur and M.Tech (Civil, Structural Engg.)
and keeps regularly writing in newspapers & magazines, on from IIT Madras.
social issues.
After completing his post-graduation from IIT Madras in 1981,
Other particulars as per Reg. 36(3) of SEBI (LODR) Regulations, he worked in a family firm Miraj Concrete Works where he
2015 are provided as under: executed various Irrigation pipeline projects. He has more
than 40 years of work experience in different fields and has
• Disclosure of relationship between directors inter-se: Nil
promoted various private Ltd Companies during this period.
• Directorship held in other listed Companies: Nil He was also associated with Professional, Industrial, Financial,
Educational and Social Organizations in different capacity.
• Membership/ Chairmanship in other listed Companies: Nil
Other particulars as per Reg. 36(3) of SEBI (LODR) Regulations,
• Shareholding in Hindustan Aeronautics Ltd: Nil 2015 are provided as under:
• The skills /expertise/ competency of the Dr. Gupta as • Disclosure of relationship between directors inter-se: Nil
required in the context of the business pertaining to the
Company are identified by the Government of India and • Directorship held in other listed Companies: Nil
accordingly selection of the Director on the Board of the
Company is made by the Government of India.
• Shareholding in Hindustan Aeronautics Ltd: Nil
None of the Directors, Key Managerial Personnel of the
Company or their relatives except Dr. Divya Gupta, is in any • The skills /expertise/ competency of the Shri Shinde as
way, concerned or interested, financially or otherwise, in the required in the context of the business pertaining to the
resolution. Company are identified by the Government of India and
accordingly selection of the Director on the Board of the
The Board of Directors recommends the Special Resolution for
Company is made by the Government of India.
your approval.
None of the Directors, Key Managerial Personnel of the
Item No. 8 –Appointment of Shri Deepak Abasaheb
Company or their relatives except Shri Deepak Abasaheb
Shinde, as Part–Time Non-Official (Independent) Director
Shinde, is in any way, concerned or interested, financially or
of the Company:
otherwise, in the resolution.
Shri Deepak Abasaheb Shinde, (DIN 00288460), was appointed
The Board of Directors recommends the Special Resolution for
as a Part-Time Non Official (Independent) Director of the
your approval.
Company with effect from April 28, 2022 pursuant to the

Item No. 9 –Appointment of Shri Jayadeva E.P. as Director Other particulars as per Reg. 36(3) of SEBI (LODR) Regulations,
(Operations) of the Company: 2015 are provided as under:
Pursuant to the MoD letter F. No. 49013/01/2021-D (HAL-III) • Disclosure of relationship between directors inter-se: Nil
dated June 10, 2022, Shri Jayadeva E.P (DIN 06761333) was
appointed as Additional Director and designated as Director • Directorship held in other listed Companies: Nil
(Operations) of the Company by the Board of Directors with
effect from June 10, 2022 under Section 161 of the Companies
Act, 2013. • Shareholding in Hindustan Aeronautics Ltd: Nil
In terms of the provisions of Section 161 of the Companies • The skills /expertise/ competency of the Shri Jayadeva E.P.
Act, 2013, and Article No.103 of the Articles of Association as required in the context of the business pertaining to the
of the Company, he would hold office upto the date of the Company are identified by the Government of India and
ensuing Annual General Meeting. A notice in writing under accordingly selection of the Director on the Board of the
Section 160 of the Act has been received from him signifying Company is made by the Government of India.
his intention to appoint him as Director of the Company along
with deposit of Rupees One Lakh, which shall be refunded, in None of the Directors, Key Managerial Personnel of the
case he is elected as director or gets more than twenty-five Company or their relatives except Shri Jayadeva E.P., is in any
percent of total valid votes cast on such resolution. way, concerned or interested, financially or otherwise, in the
resolution.
Shri Jayadeva E.P is not disqualified from being appointed as a
Director in terms of Section 164 of the Companies Act, 2013. The Board of Directors recommends the Ordinary Resolution
for your approval
Born on August 20, 1964, Shri Jayadeva E.P holds a bachelor’s
degree in Electrical Engineering from University Visvesvaraya By Order of the Board of Directors
College of Engineering, Bangalore and Masters from IIT Madras For Hindustan Aeronautics Limited
in Aircraft Production Engineering.
He joined HAL in 1987 as a Management Trainee, and has about

33 years of experience in the areas of Manufacturing, Assembly,
Overhaul, Upgrades, Customer support, Indigenisation and (G V Sesha Reddy)
other Management functions. He worked in various Divisions/ Executive Director
Offices like Overhaul Division, Aircraft Division, LCA Tejas Company Secretary
Division and Corporate Office. Place: Bengaluru
Prior to his appointment as Director (Operations), Shri Jayadeva Date: July 15, 2022
was holding the post of General Manager, LCA Tejas Division,
Bangalore.

Additional information on Directors being appointed/re-appointed as required under Regulation 36 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
Name of the Director Shri Alok Verma Shri Chandraker Bharti

DIN 08652280 02599261
Date of Birth 01.12.1962 30.10.1967
Date of appointment 01.01.2020 15.05.2018
Brief Resume Shri Alok Verma, Director (Human Resources) Shri Chandraker Bharti, Government Nominee
holds a Bachelor’s Degree in Science from Director is a graduate in engineering from
Patna University and Post Graduate Degree in Delhi College of Engineering and joined the
Social Work. He also holds an LLB from Jiwaji Indian Administrative Services in September
University and a Post Graduate Diploma 1996. He has also acquired M.Sc degree in
in Computer Applications from Punjab Public Management & Policy from London
Technical University. School of Economics & Political Science, UK.
He has more than 34 years of rich and diverse He has more than 25 years of experience
experience in Human resources function. in Civil Services and held various important
assignments in various government
departments.
Directorship held in other Listed Nil Bharat Dynamics Limited
Companies
Membership/ Chairmanship in Nil Nil
other listed Companies
Shareholding in the Company Nil Nil
Relationship with other directors Nil Nil
and Key Managerial Personnel of
the Company
PROCEDURE AND INSTRUCTIONS FOR e-VOTING

PROCEDURE FOR REMOTE E-VOTING
i. Pursuant to SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2020/242 dated December 9, 2020 on “e-Voting facility provided by
Listed Companies”, e-Voting process has been enabled to all the individual demat account holders, by way of single login
credential, through their demat accounts / websites of Depositories / DPs in order to increase the efficiency of the voting
process. Individual demat account holders would be able to cast their vote without having to register again with the E-Voting
Service Provider (ESP) thereby not only facilitating seamless authentication but also ease and convenience of participating in
e-Voting process. Shareholders are advised to update their mobile number and e-mail ID with their DPs to access e-Voting
facility.
ii. The remote e-Voting period commences on Thursday, August 25, 2022 (9.00 A.M. IST) and ends on Sunday, August 28, 2022
(5.00 P.M. IST).
iii. The voting rights of Members shall be in proportion to their shares in the paid-up equity share capital of the Company as on
the cut-off date.
iv. Any person holding shares in physical form and non-individual shareholders, who acquires shares of the Company and
becomes a Member of the Company after sending of the Notice and holding shares as of the cut-off date, may obtain the
login ID and password by sending a request at einward.ris@kfintech.com or evoting@Kfintech.com. However, if he / she is
already registered with KFintech for remote e-Voting then he /she can use his / her existing User ID and password for casting
the vote.
v. In case of Individual Shareholders holding securities in demat mode and who acquires shares of the Company and becomes a
Member of the Company after sending of the Notice and holding shares as of the cut-off date may follow steps mentioned
below under “Login method for remote e-Voting and joining virtual meeting for Individual shareholders holding securities in
demat mode.”

THE DETAILS OF THE PROCESS AND MANNER FOR REMOTE E-VOTING ARE AS UNDER:
I) Login method for remote e-Voting for Individual shareholders holding securities in demat mode.
Type of shareholders Login Method

Individual Shareholders 1. Member already registered for IDeAS facility may follow the below steps:
holding securities in I. Visit the URL: https://eservices.nsdl.com
demat mode with
II. Click on the “Beneficial Owner” icon under “Login” under ‘IDeAS’ section.
NSDL
III. On the new page, enter User ID and Password. Post successful authentication, click
on “Access to e-Voting” under e-voting services.
IV. Click on company name or e-Voting service provider i.e. KFintech and you will be re-
directed to KFintech website for casting your vote.
2. Members who have not registered for IDeAS facility may follow the below steps:
I. To register click on link : https://eservices.nsdl.com
II. Select “Register Online for IDeAS” or click at https://eservices.nsdl.com/SecureWeb/
IdeasDirectReg.jsp
III. On completion of the registration formality, follow the steps provided above.
3. Members may alternatively vote by directly accessing the e-Voting website of
NSDL
I. Visit the URL: https://www.evoting.nsdl.com/
II. Click on the icon “Login” which is available under ‘Shareholder/Member’ section.
III. Enter your User ID (i.e. your sixteen digit demat account number held with NSDL),
Password / OTP and a Verification Code as shown on the screen.
IV. Post successful authentication, you will requested to select the name of the company
or the e-Voting Service Provider name, i.e.KFintech.
V. On successful selection, you will be redirected to KFintech e-Voting page for casting
your vote during the remote e-Voting period.
Individual Shareholders 1. Members already registered for Easi / Easiest may follow the below steps:
holding securities in I. Visit URL: https://web.cdslindia.com/myeasi/home/login or URL: www.cdslindia.com
demat mode with CDSL
II. Click on New System Myeasi
III. Login with your registered user id and password.
IV. The member will see the e-Voting Menu. Click on company name or e-Voting service
provider i.e. KFintech and you will be re-directed to KFintech website for casting your
vote.
2. Members who have not registered for Easi/Easiest may follow the below steps
I. To register click on link : https://web.cdslindia.com/myeasi/Registration/
EasiRegistration
II. On completion of the registration formality, follow the steps provided above.
3. Members may alternatively vote by directly accessing the e-Voting website of CDSL
I. Visit URL: www.cdslindia.com
II. Enter your demat Account Number and PAN No.
III. Enter OTP received on registered Mobile & Email as recorded in the demat Account
for authentication.
IV. After successful authentication, the member will receive links for the respective ESP,
i.e KFintech where the e- Voting is in progress.

Individual Shareholder I. Members may alternatively login using the credentials of the demat account through their
login through their DP registered with NSDL /CDSL for e-Voting facility.
demat accounts /
Website of Depository II. On clicking the E-voting icon, members will be redirected to NSDL / CDSL Depository site
Participant on successful authentication.
III. Members may then click on Company name or e-Voting service provider – Kfintech and
will be redirected to e-Voting website of KFintech for casting their vote without any
further authentication.
Important note: Members who are unable to retrieve User ID / Password are advised to use Forgot user ID and Forgot
Password option available at respective websites.
Helpdesk details for Individual Shareholders holding securities in demat mode related to login through Depository i.e. NSDL
and CDSL are as under:
Login type Helpdesk details

Securities held with NSDL Please contact NSDL helpdesk by sending a request at evoting@nsdl.co.in or call at toll free no.:
1800 1020 990 and 1800 22 44 30
Securities held with CDSL Please contact CDSL helpdesk by sending a request at helpdesk.evoting@cdslindia.com or
contact at 022- 23058738 or 022-23058542-43
II) Login method for e-Voting for shareholders other may also enter a secret question and answer of
than Individual’s shareholders holding securities in your choice to retrieve your password in case
demat mode and shareholders holding securities in you forget it. It is strongly recommended that
physical mode. you do not share your password with any other
person and that you take utmost care to keep
(A) Members whose email IDs are registered with your password confidential.
the Company/ Depository Participants (s), will
receive an email from KFintech which will include v. You need to login again with the new credentials.
details of E-Voting Event Number (EVEN), USER
ID and password. They will have to follow the vi. On successful login, the system will prompt you
following process: to select the “EVEN” i.e., ‘ Hindustan Aeronautics
Limited ” and click on “Submit”
i. Visit the URL: https://emeetings.kfintech.com/
vii. On the voting page, enter the number of shares
ii. Enter the login credentials (i.e. User ID and (which represents the number of votes) as on
password). In case of physical folio, User ID will the Cut-off Date under “FOR/AGAINST” or
be EVEN (E-Voting Event Number), followed by alternatively, you may partially enter any number
folio number. In case of Demat account, User ID in “FOR” and partially “AGAINST” but the total
will be your DP ID and Client ID. However, if you number in “FOR/AGAINST” taken together shall
are already registered with KFintech for e-voting, not exceed your total shareholding as mentioned
you can use your existing User ID and password herein above. You may also choose the option
for casting the vote. ABSTAIN. If the Member does not indicate
either “FOR” or “AGAINST” it will be treated
iii. After entering these details appropriately, click as “ABSTAIN” and the shares held will not be
on “LOGIN”. counted under either head.
iv. You will now reach password change Menu viii. Members holding multiple folios/demat accounts
wherein you are required to mandatorily change shall choose the voting process separately for
your password. The new password shall comprise each folio/ demat accounts.
of minimum 8 characters with at least one upper
case (A- Z), one lower case (a-z), one numeric ix. Voting has to be done for each item of the notice
value (0-9) and a special character (@,#,$, etc.,). separately. In case you do not desire to cast your
The system will prompt you to change your vote on any specific item, it will be treated as
password and update your contact details like abstained.
mobile number, email ID etc. on first login. You

x. You may then cast your vote by selecting an INSTRUCTIONS FOR ALL THE MEMBERS FOR ATTENDING
appropriate option and click on “Submit”. THE AGM OF THE COMPANY THROUGH VC/OAVM AND
E-VOTING DURING THE MEETING.
xi. A confirmation box will be displayed. Click “OK”
to confirm else “CANCEL” to modify. Once you i. Member will be provided with a facility to attend the
have voted on the resolution (s), you will not be AGM through VC / OAVM platform provided by KFintech.
allowed to modify your vote. During the voting Members may access the same at https://emeetings.
period, Members can login any number of times kfintech.com/ by using the e-voting login credentials
till they have voted on the Resolution(s). provided in the email received from KFintech. After
xii. Corporate/Institutional Members (i.e. other than logging, click on the Video Conference tab and select
Individuals, HUF, NRI etc.) are also required to the EVEN of the Company. Click on the video symbol and
send scanned certified true copy (PDF Format) accept the meeting etiquettes to join the meeting. Please
of the Board Resolution/Authority Letter etc., note that the members who do not have the User ID and
authorizing its representative to attend the Password for e-Voting or have forgotten the User ID and
AGM through VC / OAVM on its behalf and to Password may retrieve the same by following the remote
cast its vote through remote e-voting together e-Voting instructions mentioned above.
with attested specimen signature(s) of the duly
authorised representative(s), to the Scrutinizer ii. Facility for joining AGM though VC/ OAVM shall open
at e-mail id i.e. cs.dakshayani@gmail.com at least 30 minutes before the commencement of the
with a copy marked to evoting@kfintech.com. Meeting.
The scanned image of the above-mentioned
documents should be in the naming format iii. Members are encouraged to join the Meeting through
“Corporate Name_Even No.” Laptops/ Desktops with Google Chrome (preferred
browser), Safari, Internet Explorer, Microsoft Edge, Mozilla
(B) Members whose email IDs are not registered Firefox 22.
with the Company/Depository Participants(s),
and consequently the Annual Report, Notice iv. Members will be required to grant access to the webcam
of AGM and e-voting instructions cannot be to enable VC / OAVM. Further, Members connecting from
serviced, will have to follow the following Mobile Devices or Tablets or through Laptop connecting
process: via Mobile Hotspot may experience Audio/Video loss due
to fluctuation in their respective network. It is therefore
i. Members who have not registered their e-mail
recommended to use Stable Wi-Fi or LAN Connection to
address and in consequence the Annual Report,
mitigate any kind of aforesaid glitches.
Notice of AGM and e-voting instructions cannot
be serviced, may temporarily get registered their v. As the AGM is being conducted through VC / OAVM,
email address and mobile number with KFintech, for the smooth conduct of proceedings of the AGM,
by accessing the link: https://ris.kfintech.com/ Members are encouraged to express their views / send
clientservices/mobilereg/mobileemailreg.aspx. their queries in advance mentioning their name, demat
Members are requested to follow the process as account number / folio number, e-mail id, mobile number
guided to capture the e-mail address and mobile at investors@hal-india.co.in. Questions /queries received
number for sending the soft copy of the notice by the Company till August 26, 2022 (5.00 P.M.) shall only
and e-voting instructions along with the User ID be considered and responded during the AGM.
and Password. In case of any queries, member
may write to einward.ris@kfintech.com. vi. The Members who have not cast their vote through
ii. Alternatively, member may send an e-mail remote e-voting shall be eligible to cast their vote through
request at the email id einward.ris@kfintech.com e-voting system available during the AGM. E-voting during
along with scanned copy of the signed copy of the AGM is integrated with the VC / OAVM platform. The
the request letter providing the email address, Members may click on the voting icon displayed on the
mobile number, self-attested PAN copy and screen to cast their votes.
Client Master copy in case of electronic folio and
copy of share certificate in case of physical folio vii. A Member can opt for only single mode of voting i.e.,
for sending the Annual report, Notice of AGM through Remote e-voting or voting at the AGM. If a
and the e-voting instructions. Member casts votes by both modes, then voting done
through Remote e-voting shall prevail and vote at the
iii. After receiving the e-voting instructions, please AGM shall be treated as invalid.
follow all steps above to cast your vote by
electronic means.

viii. Facility of joining the AGM through VC / OAVM shall be IV. The Members, whose names appear in the Register of
available for atleast 2000 members on first come first Members / list of Beneficial Owners as on August 22,
served basis. 2022, being the cut-off date, are entitled to vote on
the Resolutions set forth in this Notice. A person who
ix. Institutional Members are encouraged to attend and vote is not a Member as on the cut-off date should treat this
at the AGM through VC / OAVM. Notice for information purposes only. Once the vote on a
resolution(s) is cast by the Member, the Member shall not
OTHER INSTRUCTIONS be allowed to change it subsequently.
I. Speaker Registration: The Members who wish to speak
during the meeting may register themselves as speakers V. In case a person has become a Member of the Company
for the AGM to express their views. They can visit https:// after dispatch of AGM Notice but on or before the cut-
emeetings.kfintech.com and login through the user id and off date for E-voting, he/she may obtain the User ID and
password provided in the mail received from Kfintech. On Password in the manner as mentioned below:
successful login, select ‘Speaker Registration’ which will i. If the mobile number of the member is registered
opened from August 24, 2022 (9.00 A.M.) to August 26, against Folio No./ DP ID Client ID, the member
2022 (5.00 P.M.). Members shall be provided a ‘queue may send SMS: MYEPWD <space> E-Voting Event
number’ before the meeting. The Company reserves the Number+Folio No. or DP ID Client ID to 9212993399
right to restrict the speakers at the AGM to only those
Members who have registered themselves, depending on 1. Example for NSDL:
the availability of time for the AGM.
MYEPWD <SPACE> IN12345612345678
II. Post your Question: The Members who wish to post
their questions prior to the meeting can do the same 2. Example for CDSL:
by visiting https://emeetings.kfintech.com. Please login
MYEPWD <SPACE> 1402345612345678
through the user id and password provided in the mail
received from Kfintech. On successful login, select ‘Post 3. Example for Physical:
Your Question’ option which will opened from August 24,
2022 (9.00 A.M.) to August 26, 2022 (5.00 P.M.) MYEPWD <SPACE> XXXX1234567890
III. In case of any query and/or grievance, in respect of voting ii. If e-mail address or mobile number of the member
by electronic means, Members may refer to the Help & is registered against Folio No. / DP ID Client ID, then
Frequently Asked Questions (FAQs) and E-voting user on the home page of https://evoting.kfintech.com/,
manual available at the download section of https:// the member may click “Forgot Password” and enter
evoting.kfintech.com (KFintech Website) or contact Ms B Folio No. or DP ID Client ID and PAN to generate a
Swati Reddy, at einward.ris@kfintech.com and evoting@ password.
kfintech.com or call KFintech’s toll free No. 1-800-309-
4001 for any further clarifications. iii. Members who may require any technical assistance
or support before or during the AGM are requested
to contact KFintech at toll free number 1-800-309-
4001 or write to them at evoting@kfintech.com

Board’s Report
Dear Members, Further, the Company has also declared and paid 2nd interim
dividend of ` 26 per share of `10 each (260 %) for the financial
Your Board of Directors takes great pleasure in presenting the year 2021-22, amounting to ` 86,941 Lakh.
59th Annual Report on the performance of your Company (“the
Company” or “HAL”), and its Audited Financial Statements The Board of Directors of the Company has recommended a
for the Financial Year ended March 31, 2022, together with final dividend of ` 10 per share of ` 10 each to comply the
Reports of the Statutory Auditors and the Comptroller & Guidelines of Department of Investment and Public Asset
Auditor General of India (C&AG) thereon. Management (DIPAM) on Capital restructuring with respect to
payment of minimum dividend. The Final Dividend if approved
FINANCIAL HIGHLIGHTS by the shareholders, would involve cash outflow of ` 33,439
The financial highlights for the year ended March 31, 2022 are Lakh.
summarised as under: Thus, the total dividend including final dividend for the
(` in Lakh except per equity share data) financial year 2021-22 would be ` 50 per equity share (500%),
amounting to ` 167,194 Lakh.
PARTICULARS 2021-22 2020-21
Turnover 24,36,166 22,50,096 In terms of the provisions of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
Exports 16,796 23,980 [SEBI (LODR) Regulations] and the Guidelines of DIPAM, your
Profit Before Tax (PBT) 5,23,115 4,27,738 Company has formulated a Dividend Distribution Policy and the
Provision for Tax 14,465 1,03,793 same is available on the Company’s website at https://hal-india.
Profit After Tax (PAT) 5,08,650 3,23,945 co.in/Common/Uploads/DMS/Dividend_Distribution_Policy.pdf
R&D Expenditure 1,96,691 1,68,740 RESERVES
Earnings/ Share (in `) 152.11 96.88
During the year under review, `31,596 Lakh was transferred
Book Value / Share (in `) 576.10 459.59 to Research & Development Reserve and `3,57,986 Lakh to
General Reserves.
During the year under review, the turnover of the Company
increased by 8% to ` 24,36,166 Lakh from ` 22,50,096
BORROWINGS
Lakh of the previous year. The Profit before Tax for the year
increased by 22% to ` 5,23,115 Lakh from ` 4,27,738 Lakh in As on March 31, 2022, the short term and long term borrowings
the previous year. The Profit after Tax (PAT) increased by 57% of the Company was Nil.
to ` 5,08,650 Lakh from ` 3,23,945 Lakh in the previous year.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
PRODUCTION HIGHLIGHTS The Company has an Internal Control System, commensurate
During the year, the Company has produced 34 numbers of with the size, scale and complexity of its operations. The
new Aircraft and Helicopters, covering LCA Tejas, Dornier Do- Company has in place adequate internal financial controls
228, ALH Dhruv and Light Combat Helicopter (LCH) in addition for ensuring efficient conduct of its business. A detailed note
to the production of 80 New Engines and Accessories, at on internal financial controls is provided in the Management
its various Divisions. The Company has also overhauled 207 Discussion and Analysis Report.
Aircraft / Helicopters and 506 engines during the year.
LOANS, GUARANTEES AND INVESTMENTS
ORDER BOOK POSITION Details of Loans, Guarantees and Investments as covered under
During the year, the Company has bagged a contract for the provisions of Section 186 of the Companies Act, 2013 form
production and supply of 15 Light Combat Helicopters (LCH) part of Notes to the Financial Statements.
on March 30, 2022.
RELATED PARTY TRANSACTIONS
The Order Book position of the Company stands at ` 82,15,400
During the year, your Company has entered into transactions
Lakh as on March 31, 2022.
with related parties. In line with Related Party Transactions (RPTs)
DIVIDEND Policy, approval of the Audit Committee and Board, as the case
may be was obtained for RPTs. As per the threshold mentioned
During the year, your Company has declared and paid 1st in the Policy, there were no material related party transactions
interim dividend of `14 per share of `10 each (140 %) for the with the Company’s Promoters, Directors, Management or
financial year 2021-22, amounting to ` 46,814 Lakh.

their relatives, which could have had a potential conflict • Commenced Performance Based Logistics (PBL) operations
with the interests of the Company. The disclosures related to of ALH Mk III (MR) on February 10, 2022 for the first batch
RPTs in accordance with the applicable accounting standards of ALH Mk III (MR) inducted by CG under PBL support
are provided in Clause No. 45A of the Notes to the financial regime.
statements. Details of contract(s) or arrangement(s) with
• The green field helicopter factory of HAL at Tumakuru is in
related parties referred to in Section 188(1) of the Companies
place, with stage 1 & stage 2 infrastructure facilities at an
Act read with Rule 8(2) of the Companies (Accounts) Rules,
investment of ` 47,637 Lakh by the company.
2014, in the prescribed form AOC-2 is attached to this Report
as Annexure-I. • The Company has made investment of `1,20,000 Lakh
in UP Defence Industrial Corridor (UPDIC) towards
CONSOLIDATED FINANCIAL STATEMENTS enhancement of capacity & capability at Lucknow, Korwa
The Consolidated Financial Statements of your Company and and Kanpur Divisions of HAL.
its Joint Venture Companies and Subsidiary Companies for the
• In-line with Government’s vision to boost defence exports
year ended March 31, 2022 have been prepared in accordance
to friendly foreign countries, the Company has signed the
with the provisions of Section 129(3) of the Companies Act
contracts with Government of Mauritius (GoM) for export
and applicable Accounting Standards, and form part of this
of one passenger variant Do-228 (PVD) on September 10,
report.
2021 and for one Advanced Light Helicopter (ALH) Mk III
Pursuant to the first proviso of Section 129(3) of the Companies helicopter on January 19, 2022. Further, HAL has already
Act read with Rule 5 of the Companies (Accounts) Rules, completed the production and delivery of this Do-228 PVD
2014, a separate statement containing salient features of the for Mauritius ahead of contractual delivery commitment.
Financial Statements of Subsidiaries / Associate / Joint Venture
• The Intermediate Jet Trainer (IJT), designed and developed
Companies in Form AOC-1 is appended to this report, which
by HAL for stage –II training of IAF pilots has successfully
forms part of the Financial Statements. The separate Audited
demonstrated the capability to carry out six turn spins, to
Financial Statements in respect of the Subsidiaries are also
the LH and RH sides, which is the most crucial stage in
available on the website of the Company at www.hal-india.
flight trials.
co.in.
• RCMA cleared the introduction of foldable Tail boom and
SUBSIDIARY/ ASSOCIATE/ JOINT VENTURE COMPANIES Horizontal Stabilizer on ALH Mk-III Wheel Version as a
As on March 31, 2022, your Company has two Subsidiaries Technology Demonstrator.
including one wholly owned Subsidiary and fourteen Joint
Venture Companies (JVCs) including two Not-for-Profit • Indigenously designed and developed ‘Air Data Computer
Companies (Section 8 Companies). ADC 3600A CVL1 (ADC-ITSOA)’ which is ‘Environmentally
Qualified’ with in-house developed application software
Pursuant to the provisions of Section 134(3)(q) of the Companies certified for civil platforms of aircraft and helicopters.
Act read with Rule 8(1) of the Companies (Accounts) Rules,
2014, a Report on the performance and financial position of • Integrated SPICE 2000 weapon on Mirage 2000 aircraft
each of the Joint Venture Companies and Subsidiary Companies with Mission Computer MC2 which is designed and
is attached to this Report as Annexure-II. developed by the Company, through MIL 1553 Bus.
• The Company has successfully integrated and flown

SIGNIFICANT ACHIEVEMENTS
‘Lithium Main Battery’ on HTT-40 and making it first time
Significant achievements of the Company during the year are in the continent using lithium battery for military aviation.
as follows:-
• Indigenously designed and developed Solid State Weapon
• HAL has bagged a contract for production and supply of Control System (SSWCS) for management of weapons on
15 Light Combat Helicopters (LCH) on March 30, 2022. Jaguar aircraft as a replacement to the ageing Armament
Main unit (AMU).
• Handed over 75th ROH Su-30 MKI aircraft to IAF on
January 25, 2022. HAL has overhauled 20 Su-30MKI • Successfully completed the design, development and
aircraft attaining the peak capacity envisaged against certification of Solid State Cockpit Voice and Flight
capacity augmentation project in the current year. Data Recorder (SSCVFDR) and Control Unit (CU) for
Hindustan-228 aircraft.
• Completed Mid-Life upgrade of two Do-228 aircraft
for Coast Guard in 2021-22 against deliveries originally • The Company has in-house developed multi-platform
scheduled to start from 2022-23 as per Contract. adaptable generic simulator, which is capable of flight
simulations for predictions and replay of flight dynamics

with designer’s synthetic input as well as Pilot-in-loop 3050kg. Controls optimized and 9 Turn Spins demonstrated on
inputs for various platforms using the same cockpit clean aircraft. The PSQR validation trials by IAF completed. In
controls and associated peripherals utilizing mature and February, 2021, Request for Proposal (RFP) for HTT-40 aircraft
accurate 6DOF model of the respective aircraft. received from IAF and response has been submitted in April
2021 which is presently under evaluation.
• The heaviest Semi-Cryogenic propellant tank (SC120-
LOX) ever fabricated by HAL was delivered to Indian Space • LIGHT COMBAT AIRCRAFT (LCA) Mk 1A
Research Organization (ISRO) on October 5, 2021.
LCA Mk1A is an improved variant of indigenously developed
CURRENT PROJECTS AND PROGRAMS LCA MK1, presently being developed by HAL. It has additional
features and improvements such as Self Protection Jammer,
During the year, the Company has produced Light Combat Active Electronically Scanned Array (AESA) RADAR, Beyond
Aircraft (LCA) Tejas, Dornier Do-228 Aircraft (both civil & Visual Range (BVR) Missile.
military), Advanced Light Helicopter (ALH) Dhruv, Light Combat
Helicopter (LCH), engines, accessories and aerospace structures Contract for the supply of 83 LCA Mk1A to IAF was signed
against the various customer orders. HAL has launched during Aero India 2021 and production activities have been
production of Light Utility Helicopter (LUH) against Letter of launched.
Intent (LoI) received from customers.
• LIGHT UTILITY HELICOPTER (LUH)
As a major step towards civil operations, the Company also
signed a lease agreement with Alliance Air Aviation Limited on The LUH is a single engine, 3 Ton weight class helicopter having
September 26, 2021 for the supply of two Civil Do-228 aircraft Glass Cockpit with Multi-Function Displays. The helicopter
for regional operations in Arunachal Pradesh, aimed at giving is capable of flying at 220 Kmph; service ceiling of 6.5 Km
boost to India’s Regional Connectivity Scheme (RCS). First and a range of 350 Km with 500 kg payload. Three flying
commercial flight on the Dibrugarh-Pasighat route commenced prototypes have been built and were extensively flight tested.
on April 12, 2022 by Alliance Air Aviation Limited. Initial Operational Clearance (IOC) for LUH IAF Version was
accorded on February 7, 2020 and for the Indian Army Version
The Company has also embarked on DGCA Type Certification on February 5, 2021.
(TC) of 19 seater Hindustan-228 aircraft, a Do-228 Civil variant.
The first flight of the aircraft was held on December 26, 2021 During the year, Hot and High altitude flight trials with new
and Type Certificate from DGCA has been received on May tail rotor system to further improve performance requirement
19, 2022. completed at Leh. The Company received Letter of Intent (LoI)
for 12 helicopters and production activities have commenced.
DEVELOPMENT PROGRAMS
The green field helicopter factory at Tumakuru for
The Design team of the Company has made continuous efforts manufacturing of LUH is also in place.
to propel the development programs by developing various
technologies and significantly moved towards the realization • Indian Multi Role Helicopter (IMRH)
of the projects viz. Basic Trainer Aircraft (HTT-40), Light Utility The Company has undertaken the design and development of
Helicopter (LUH), Light Combat Aircraft (LCA)- MK1A, Indian 10-15 ton class IMRH for Indian Air Force, Indian Army and
Multi-Role Helicopter (IMRH) and Development of Engines. The Indian Navy. The Naval variant of IMRH is christened Deck
progress achieved in respect of these projects during the year Based Multi Role Helicopter (DBMRH).
is given below:-
IMRH and DBMRH would be designed to meet the requirement
• BASIC TRAINER AIRCRAFT (HTT-40)
of all the three military services and its future extension to civil
HTT – 40 is the Basic Trainer aircraft currently being indigenously market to cater to off shore operations, utility, VVIP transport
designed and developed by HAL. HTT-40 would be used for etc., to enlarge the helicopter business through production as
basic flight training, aerobatics, instrument flying and close- well as MRO activities.
formation flights whereas its secondary roles would include Currently, the preliminary design phase is under progress.
navigation and night flying. Features of the aircraft include Air HAL has completed Phase 1 of wind tunnel testing of IMRH-
conditioned cockpit, Tandem seating, Zero-Zero ejection seats IAF scaled model and results are satisfactory. Phase-2 of Wind
and Multifunction Displays. The aircraft has the capability to be Tunnel testing are under progress.
converted to armed / weaponised version at a later stage. The
program has been taken up with internal funding. A total of 3 In a significant boost to Prime Minister’s vision on ‘Aatmanirbhar
prototypes have been built which includes two flying prototype Bharat Abhiyan’, 18 major platforms have been identified by
and one Structural Test Specimen (STS). the Ministry of Defence for industry led R&D under various
routes, wherein private industry will be encouraged to take up
During the year, the aircraft has successfully completed erect design and development of military platforms and equipment.
spin certification. All PSQR performances met with AUW The Indian Multi Role Helicopter (IMRH) is identified as one of

these 18 platforms to be taken up through Special Purpose launched during Aero India 2021 and HAL has commenced
Vehicle (SPV) model. Accordingly, HAL has issued the Expression ‘Low Speed Wind Tunnel Tests’.
of Interest (EoI) in April, 2022 for selection of SPV Partner.
During the year, the Company has incurred a total R&D
• 25 kN TURBOFAN ENGINE (HTFE-25) expenditure of ` 1,96,691 Lakh which is 8.07% of the Turnover.
The company has transferred a sum of ` 31,596 Lakh (10% of
Design and development of a 25kN thrust class turbofan Operating PAT) to R&D reserve for contribution to R&D corpus
engine, which can be used on Basic/ Advanced military trainers, during the year 2021-22.
on small business jets and also large UAV applications is under
progress at HAL. The engine can be used on a 5-ton weight During the year, HAL has filed 102 IPR applications which make
class aircraft in single engine configuration and on aircraft of up cumulative number of 2031 IPRs filed by Company. Further, 147
to nine- ton weight class with twin-engine configuration. Two IPRs have also been granted during the year taking cumulative
core engines have been produced so far and are undergoing IPRs held by the organization to 611. (Patents – 64, Industrial
development trials. Cold weather trials and Hot weather high Designs – 102, Copyrights – 443, Trademark - 2).
altitude trials were completed at Leh.
BOARD AND ITS COMMITTEE MEETINGS
Full engine (Technology Demeonstrator) has been built and first
run completed successfully. Completion of acceleration trials During the year, 12 (Twelve) Board Meetings were held and the
upto 55% of the speed achieved. maximum interval between any two meetings was not more
than 120 days.
• 1200 kW TURBOSHAFT ENGINE (HTSE-1200)
The details of meetings of the Board and Committees thereof
The 1200KW Turbo shaft engine would be used as power held during the year are furnished in the Corporate Governance
plant for 3 to 6-ton category helicopters. One technology Report, which forms part of this Report.
demonstrator of HTSE-1200 engine was built and it is presently
under testing.100% speed run achieved on core engine. Sea COMMITTEES OF THE BOARD
level trials of core engine completed successfully. As on March 31, 2022, the Board has five Statutory Committees
namely Audit Committee, Nomination & Remuneration
High altitude cold weather trials of Jet Mode Engine at Leh
Committee, Corporate Social Responsibility & Sustainable
and High altitude hot weather trials of Jet Mode Engine at Leh,
Development Committee, Stakeholders Relationship
South Pullu and Khardung-La completed. Run of Power mode
Committee and Risk Management Committee.
engine to 80% of the speed achieved.
A detailed note on the composition, terms of reference and
• HAWK-i
meetings of the Board and its Committees is provided in the
Hawk India (Hawk-i) is the indigenously upgraded Hawk Corporate Governance Report.
Mk 132 aircraft with enhanced operational and training
capabilities. All design and software development activities CHANGES IN BOARD OF DIRECTORS AND KEY
completed. Development of all Avionics LRUs (Viz. RADALT, IFF MANAGERIAL PERSONNEL
Mk XII, SSDVRS, CMDS, Softnet Radio, INCOM, DTS, SAAW, The following changes took place in the Board of Directors and
R118 RWR, VACS, ICU & CSIO-HUD) completed. Flight trials of Key Managerial Personnel (KMP) of your Company during
also completed. The aircraft is being offered to IAF and other the financial year:
prospective customers.
Appointment
RESEARCH AND DEVELOPMENT EFFORTS
Dr. Divya Gupta, was appointed as Part –Time Non-Official
HAL has continued its efforts towards Design and Development (Independent Director) on the Board of the Company w.e.f
of new platforms/ products / technologies and activities December 28, 2021.
to enhance its capability with a view to bring technological
superiority to its products and in order to cope up with the Cessation
future technological challenges. These efforts have resulted in
successful demonstration of deck based operations capability • Rear Adml K C Sekhar and Dr Malla Reddy ceased as
and integration of Medical Intensive Care Unit (MICU) on ALH Independent Director on the Board of the Company due
MkIII, capability of IJT to carry out LH and RH side six turn spins to Completion of their tenure on July 23, 2021.
and completed the erect spin certification flight trials on HTT- • Shri M S Velpari ceased as Director (Operations) on the
40 aircraft. HAL is also progressing the design & development Board of the Company due to his superannuation on
of Combat Air Teaming System (CATS) Warrior, which was February 28, 2022.

DECLARATION OF INDEPENDENCE CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
The Company has received declarations from the Independent
Directors of the Company under the Companies Act confirming As a defence Central Public Sector Enterprise (CPSE), your
that they met the criteria of independence as prescribed under Company was granted exemption vide Notification GSR
Section 149(6) of the Companies Act and Regulation 25(8) of No.680 (E) dated September 4, 2015, from the disclosure of
the SEBI (LODR) Regulations and they have also complied with information with respect to conservation of energy, technology
the Code for Independent Directors as prescribed in Schedule absorption, foreign exchange earnings and outgo under the
IV of the Act. provisions of Section 134(3)(m) read with Rule 8(3) of the
Companies (Accounts) Rules, 2014.
COMPANY’S POLICY ON DIRECTORS’ APPOINTMENT AND
REMUNERATION CORPORATE SOCIAL RESPONSIBILITY (CSR)
The appointment, tenure and remuneration of Functional Pursuant to the provisions of Section 135 of the Companies
Directors including Chairman and Managing Director (CMD) Act and Companies (Corporate Social Responsibility Policy)
are determined by the Government of India. The Terms Rules, 2014 and Amendment thereof & DPE Guidelines, the
& Conditions of appointment, including the period of Company has undertaken various activities during the year as
appointment, the Scale of Pay and other entitlements are per its CSR Policy. The projects / programmes / activities taken
notified by the Government of India. up are in line with Schedule VII of the Companies Act. The
thrust areas under CSR are healthcare including combating
Government Nominee Directors are appointed by the against COVID-19, Skill Development for Employment
Department of Defence Production, Ministry of Defence and Enhancement & Self Employment, Education etc. The other
they are not entitled to any remuneration / sitting fees. areas in which support extended were Sanitation, Drinking
Water, Environment Sustainability, Sports Development etc.
Independent Directors are appointed by the Government of
The Company has spent an amount of `7,827 Lakh under
India and they are entitled to sitting fees for attending the
CSR for the Financial Year 2021-22 against the CSR budget/
Board / Committee meetings as prescribed by the Board in
obligation of `8,100 Lakh.
adherence with the statutory Rules and Regulations.
The Corporate Social Responsibility Policy, Composition of
In view of the Gazette Notification No GSR 463 (E) dated
the Committee and CSR Projects/ Activities of the Company
June 5, 2015 of the Ministry of Corporate Affairs (MCA), your
is available on the Company’s website at https://hal-india.
Company, as a Government Company, is not required to frame
co.in/Corporate%20Social%20Responsibility/M__412. Salient
a Policy on Directors’ appointment and remuneration, including
features of the Policy form part of the Annual Report.
criteria for determining qualifications etc. under Section 134(3)
(e) of the Companies Act. Annual Report on CSR activities undertaken by your Company
during the year 2021-22, pursuant to Section 135 of the
BOARD EVALUATION Companies Act, 2013 read with Companies (Corporate Social
Pursuant to the Notification No. 463 (E) dated June 5, 2015 Responsibility Policy) Rules, 2014, as amended, is attached to
issued by the Ministry of Corporate Affairs, the statement this Report as Annexure-III.
indicating the manner in which formal annual evaluation has
been made by the Board of its own performance and that of BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
its committees and individual directors is not required for your In terms of amendment dated May 05, 2021 to Regulation
Company, as the performance of directors is evaluated by the 34(2)(f) of SEBI (LODR) Regulations, the Company has prepared
Administrative Ministry. Business Responsibility and Sustainability Report (BRSR) for the
year 2021-22 on Environment, Social and Governance (ESG)
ANNUAL RETURN parameters in the prescribed format and appended to this
In accordance with the provisions of the Companies Act, 2013, Report.
the Annual Return in the prescribed format has been hosted
on website of the Company at https://hal-india.co.in/Common/ DEVELOPMENT AND IMPLEMENTATION OF RISK
Uploads/DMS/Form_MGT_7_21_22.pdf MANAGEMENT POLICY
The Company has a Board approved Risk Management Policy,
COMPLIANCE WITH SECRETARIAL STANDARDS in place. The policy aims at elimination or reduction of risk
The Company complies with all applicable mandatory secretarial exposures through identification and analysis of various types
standards issued by the Institute of Company Secretaries of of risks and facilitating timely action for taking risk mitigation
India. measures. The policy envisages that all programs, project

reviews will highlight the progress of risk mitigation plans till manufacture as well as repair & overhaul of aircraft, engine
the closure and signing off the mitigation plans. and associated accessories. Every year, HAL indigenizes various
items/ components and systems of foreign origin fitted on
In line with Regulation 21 of the SEBI (LODR), Regulations, HAL platforms through in-house capabilities or with the help
2015, the Board of Directors had constituted the Risk of local vendors to reduce dependence on imports, savings in
Management Committee for monitoring and reviewing of foreign exchange and manage obsolescence, thus fostering
the risk management plan and other such functions as it may, self-reliance through ‘Make in India’.
deem fit including cyber security, in line with applicable laws.
In line with the Atmanirbhar Bharat Abhiyan of Govt. of
SIGNIFICANT AND MATERIAL ORDERS India, HAL indigenised 1412 no. of items with anticipated
There are no significant and material orders passed by the annual foreign exchange saving of `159.6 Crore during the FY
Regulators or Courts or Tribunals impacting the going concern 2021-22. To align with national priorities and ensure inclusive
status and the operation of the Company in future. growth, HAL has been also encouraging Indian private sector
participation in the indigenization/ Make in India efforts to
PUBLIC DEPOSITS undertake various high value systems/equipment of foreign
origin fitted on HAL platforms.
Your Company has not accepted any deposit during the year.
Further, there was no outstanding deposit and/or unpaid or The other major initiatives / achievements during the year are
unclaimed principal amount or interest against any deposit as under:
either at the beginning or at the end of the Financial Year
2021-22.  Indigenisation under MoD’s ‘Shelf of Projects’
scheme:
ISSUE OF EQUITY SHARES WITH DIFFERENTIAL RIGHTS
MoD’s ‘Shelf of Projects’ is an ambitious scheme to
During the year, the Company has not issued any equity shares enhance indigenous capability in the country in defence
with differential rights as to dividend, voting or otherwise. sector where in key projects involving high technologies
have been identified for indigenization in a given time
MATERIAL CHANGES SUBSEQUENT TO THE DATE OF frame. The Company has identified major items for ‘Shelf
FINANCIAL STATEMENTS of Projects’ scheme to be developed indigenously for its
No material changes / commitment of the Company have rotary platforms. Upon successful prototype development
occurred after the end of the Financial Year 2021-22 and till and final acceptance after trial and testing, there will be
the date of this report, which affect the financial position of an embargo on import for these items. In this regard,
the Company. the Company has started vendor outreach activities for
indigenous development of these items. This initiative is
PARTICULARS OF EMPLOYEES AND RELATED an important step towards self-reliance in Defence Sector.
DISCLOSURES
 Indigenisation of Major LRUs of various Platforms:
The provisions of Section 197 of the Companies Act and the
relevant Rules regarding particulars of employees drawing During the year, the Company has also taken initiative for
remuneration in excess of the limits specified are exempted for indigenous development of Line Replaceable Units (LRUs)
Government Company, in view of the Gazette Notification No. currently being imported for its major platforms. In this
G.S.R. 463 (E) dated June 5, 2015 issued by the Ministry of regard, the Company has put concerted efforts towards
Corporate Affairs, Government of India. finalization of roadmap for indigenisation of LRUs. These
items are planned to be indigenized through In-house,
MOU WITH GOVERNMENT Make-I, Make-II, DRDO/ ADA route etc. in the coming
years.
Your Company signs annual Memorandum of Understanding
(MoU) with the Ministry of Defence (MoD), Government of  Indigenisation through Make-II procedure:
India (GoI).
The Company has already started indigenization through
The Company has achieved “Excellent” performance rating HAL Make-II (Industry Funded) procedure which is in
with a score of 93.49 for the financial year 2020-21 against compliance of the Make-II framework promulgated
MoU signed with the Ministry of Defence, Government of by MoD and envisages the assured order quantity after
India. successful development of items through private vendors.
The Company has made significant progress in this regard
INDIGENISATION and has issued Expression of Interest (EoI) for around 800
The Company has put in concerted efforts on indigenisation nos. of items cumulatively in a phased manner to take up
of components, accessories and systems required to for indigenisation.

 Uploading of imported items in Srijan Defence changes were made to the existing HAL Outsourcing manual,
Portal: to ease up the process of taking up Outsourcing through GeM.
In continuation of its effort to support Indian Industries EXPORTS
with opportunities for Make-In-India in Defence, the
Company has uploaded cumulatively more than 13000 Initiatives taken to boost Exports during the year are as under:
nos. of imported items in Srijan Defence Portal of MoD,  Concluded contracts with Mauritius Police Force under
GoI. Government of India supported EXIM Bank Line of Credit
for supply of following platforms:
 Organising/ participation in Seminars, Conferences
and Exhibitions on Indigenisation / Vendor (a) one Passenger Variant Do-228 (PVD) aircraft and
Development program
(b) one Advanced Light Helicopter (ALH) Mk.III helicopter
To keep abreast Indian Vendors for opportunities available
 The contract of Do-228 was exchanged between High
at HAL for indigenization, the Company organized
Commissioner of India to Mauritius and Minister of Foreign
and participated in number of seminars/ conferences/
Affairs, Govt. of Mauritius during an official ceremony at
vendor development meets mainly through virtual mode.
Mauritius held on September 13, 2021.
Participants were also briefed about the Indigenisation
procedure and support provided by the Company during  Signed Contract with Nigerian Army Aviation for ab-
indigenization. initio training of six helicopter pilots and the training was
completed successfully. Follow-on Contract for Phase 2
INITIATIVE FOR ATMANIRBHAR BHARAT Training has also been signed by Nigerian Army.
During the year, the Company has produced 34 new aircraft/  Light Combat Aircraft (LCA), Tejas was shortlisted by Royal
helicopters which includes 30 indigenous aircraft/ helicopters Malaysian Air Force (RMAF) and an RFP was issued to
(namely ALH, LCH and LCA), which is an immense contribution HAL. The RFP was responded and presently the evaluation
towards Atmanirbharat. These are state-of-the-art platforms of the proposal for 18 nos. LCA FLIT for RMAF is under
in its class, the development of which has obviated the need progress.
for importing platforms from abroad, thus not only saving
significant FE to the country but ensuring availability of lifecycle BUSINESS DEVELOPMENT
support within the country. Accordingly, operations of HAL by
The following Initiatives taken for Business Development
way of manufacturing and overhaul of aircraft, engines and
during the year:
accessories in India, has been resulting in annual FE saving to
the tune of USD 2 Billion to the Country, year on year.  HAL is in discussion with Lockheed Martin Corporation-
USA, Boeing-USA, IAI-Israel, Saab Aeronautics-Sweden,
As a continuous pursuit towards greater self-reliance, imported
Airbus-Germany, Dassault Aviation-France, Rolls Royce-
LRUs, systems, components etc fitted on indigenous platforms
UK, GE Engines-USA and others for possible business
are being taken up for indigenization under various routes
co-operation in manufacturing of system, subsystem,
through in-house as well as private industry involvement under
final assembly & integration of aircraft in India under
Make I, Make II etc. In FY 2021-22, a total of 1412 items have
Indigenization and Atmanirbhar scheme of GoI.
been indigenized.
 MoU with Rolls Royce for extending RoH services for
OUTSOURCING Adour 871 Engine operating overseas.
As part of the “Make in India” drive and the Atmanirbhar
 Signed License agreement for repair and overhaul of
Bharat Abhiyan, HAL has been nurturing and developing a
vibrant indigenous aerospace & defence ecosystem. In its LM2500 Marine Gas Turbines operated by South East
path of moving towards being a lead integrator, HAL has Asian countries.
been striving to develop Tier-II and gradually Tier-I suppliers  MoU signed between HAL and Lockheed Martin towards
over a period of time while retaining the core areas as prime meeting Offset commitments related to Indian MoD
integrators. HAL has been taking up outsourcing diligently even procurements.
in the new, and upcoming projects, so as to turn the suppliers
into reliable business partners over time.  Interaction with Boeing for ToT/Co-development projects,
under offsets, for refinement of HAL platforms with a view
Furthermore, to provide the required impetus and to address to enhance customer comfort.
the concerns in taking up Outsourcing through GeM portal,
training/ knowledge sharing sessions were organized for the  HAL and Alliance Air signed Dry Lease Agreement for two
officers concerned. Outsourcing vendors were requested and Do-228 aircraft on September 26, 2021 which are now
encouraged to on-board the GeM portal. Necessary policy being operated in N-E region.

 HAL is progressing on the design & development of (22)-2018-MA dated November 9, 2018. The Company has
Amphibian variant of Do-228 aircraft, considering the achieved more than the mandated procurement of 25% from
requirement for such aircraft in domestic and international MSE entrepreneurs (excluding specific defence procurement
markets. as per Sl.No.14 of the policy). During the year, the total value
of procurement including\ outsourcing made from MSEs is
VENDOR DEVELOPMENT `1,18,554 Lakh.
During the year, the Company has taken several vendor
development initiatives to increase the number of vendors. INTEGRITY PACT (IP)
Your Company has system of signing of IP with vendors for all
During the year, the Company has conducted 21 Vendor
procurement of Goods, Services & Works / contracts having
Development Programmes, of which 19 were for Micro &
value of ` 5 Crore and above. Only those Vendors / bidders, who
Small Enterprises (MSEs) & 2 were for MSEs owned by SC/ST
commit themselves to IP with the HAL would be considered
Entrepreneurs.
competent to participate in the bidding process. Further, to
The Company has registered with RXIL and Mynd Solution for encourage competition in HAL procurement and to reduce
enabling payments through TReDS platform to MSMEs. HAL processing lead time, HAL has implemented the Omnibus
has already made payments through RXIL & Mynd platform. Integrity Pact with effect from January 1, 2018. This Omnibus
All efforts are made to bring the MSMEs on TReDS platform. IP shall be valid upto 5 years and the same can be proposed by
bidder for consideration against any offers submitted by the
The Company has registered with MSME SAMBANDH portal vendor during the validity period of Omnibus IP.
and the procurement details are being updated monthly
in this Portal. The Company has also registered with MSME HUMAN RESOURCE DEVELOPMENT
SAMADHAAN portal and the same is being monitored regularly
The strength of employees as on March 31, 2022 stood at
for resolution of payment complaints of MSEs, if any.
25,412.
Your Company is a part of Public Procurement Portal,
Government e-Marketplace (GeM portal) and registered as a As on March 31, 2022, a total of 3324 Apprentices were
Buyer in GeM Portal and taking up procurement of items which engaged in the Company, comprising 9.2% of the total
are available in GeM Portal. Also procuring several items which employee strength including contractual staff.
are not available in GeM Portal utilizing Custom Bid Module/
EMPLOYEE WELFARE
BoQ Module extensively. All our vendors are being persuaded
to on board on the GeM portal to utilize the facilities available Company extends welfare benefits to the employees and
in the GeM portal. their dependents by way of comprehensive Medical Facilities,
Housing Facilities, Canteen Facilities (for employees only), and
HAL has implemented company-wide e-Procurement system Educational facilities for employee’s Children, Sports Facilities,
through its own e-Procurement portal for all tenders valuing etc.
more than `2 lakhs. A 24X7 e-Procurement help desk has
been established to provide information, support, training, Keeping in view the COVID-19 pandemic which had unfolded
operational issues/clarifications to the vendors. an unprecedented situation creating a sense of uncertainty
among people, the Company had introduced a Scheme
HAL has implemented the Public Procurement (Preference
during June 2021, which would be effective from 01/01/2020,
to Make in India), Order 2017 and its amendments issued
to ensure regular monthly monetary support ranging from
vide letter No.P-45021/2/2017-PP(BE-II) dt.May 29, 2019 by
` 15,000/- PM to ` 50,000/- PM depending upon the Grade /
Department for Promotion of Industry and Internal Trade (DPIIT)
Scale of the employee, to the dependent family members of the
to encourage ‘Make in India’ and promote manufacturing and
deceased employees upto the notional date of superannuation
production of goods & services in India.
thereby enabling them to lead a normal life. Further, to provide
PROCUREMENT FROM MICRO & SMALL ENTERPRISES an opportunity to Executives to avail Leave in the form of
(MSEs) Sabbatical, HAL Sabbatical Scheme has also been introduced
during the year in the Company. The Scheme provides an
The Company has implemented the Public Procurement Policy Officer to avail Leave without pay upto a maximum period of
for Micro and Small Enterprises (MSEs) Order, 2012 & its 2 (two) years in maximum of 2 (two) spells during the service
amendments issued by Ministry of MSME vide Order No.21 in the Company.

REPRESENTATION OF SC/STs
The position regarding representation of Scheduled Castes / Scheduled Tribes (SC / STs) is as follows:
Representation of SC/STs in the total strength of the Company as on 1st January 2021 and 1st January 2022
Category (Grade / Scale of Pay) Total Strength as on Number of SCs as on Number of STs as on
1.1.2021 1.1.2022 1.1.2021 1.1.2022 1.1.2021 1.1.2022
Group – A (Grade – II & above ) 8000 7843 1436 1396 493 482
Group – B (Grade-I) 25 19 3 2 2 2
Group – C (Scale -3 to Special Scale) 18620 17801 3260 3114 1393 1364
Group – D (Scales – 1 & 2 )
(i) Excluding Safai Karmacharis 5 5 1 1 - -
(ii) Safai Karmacharis - - - - - -
Total 26650 25668 4700 4513 1888 1848
Recruitments made during the period 1st January, 2021 to 31st December, 2021 and the SC/STs amongst them
Category (Grade / Scale of Pay) Total No. of Reservations No. of Posts filled by
number of made for appointment of
Post filled SCs STs SCs STs
Group – A (Grade – II & above ) 125 17 7 18 8
Group – B (Grade-I) - - - - -
Group - C (Scale - 3 to Special Scale) 27 3 6 6 4
Group - D (Scales – 1 & 2)
(i) Excluding Safai Karmacharis - - - - -
(ii) Safai Karmacharis - - - - -
Total 152 20 13 24 12
Vacancy - based Promotions made during the period 1st January, 2021 to 31st December, 2021 and the SC/STs amongst them
Category (Grade / Scale of Pay) Total No. of Reservations No. of Posts filled by
number made for Promotion of
Promoted SCs STs SCs STs
Group – A (Grade – II & above ) 956 NA NA 161 51
Group – B (Grade-I) - - - - -
Group – C (Scale - 3 to Special Scale) - - - - -
Group – D (Scales – 1 & 2 )
(i) (i) Excluding Safai Karmacharis - - - - -
(ii) Safai Karmacharis - - - - -
Total 956 - - 161 51
EMPLOYEE RELATIONS (ER) / INDUSTRIAL RELATIONS

The Employee Relations Scenario remained peaceful and cordial during the year. Smooth relations were maintained between the
Management and the Unions / Associations by having effective communication, so as to eliminate any scope of conflicts and
misunderstandings and thus facilitate maintenance of Industrial Harmony. Meetings with the representatives of the Recognized
Unions / Officers Associations at the Divisional, Complex & Corporate Levels were held to discuss various issues.

Plant Level & Shop Level Committees with representatives PROHIBITION OF SEXUAL HARASSMENT OF WOMEN AT
from the Management / Union are functioning in the Divisions WORKPLACE
to discuss and resolve production related matters. In order
The Sexual Harassment of Women at Workplace (Prevention,
to address Employee Grievance / Representations, Grievance
Prohibition and Redressal) Act, 2013 has been notified in the
Redressal Mechanisms are also in place in the Company.
Company. In line with the Guidelines received from time to
time, necessary actions have been taken to prevent Sexual
RAJBHASHA IMPLEMENTATION
Harassment of Women at Workplace. The HAL CDA Rules
In accordance with the Guidelines issued by Department of Official applicable to Officers and the Certified Standing Orders
Language, Ministry of Home Affairs, New Delhi, constant efforts applicable to Workmen have the required provisions in this
are being made by all the Divisions of the Company towards regard.
implementation of the Official Language Policy (OL Policy).
Internal Complaints Committees as per Section 4 of the Act
HAL Corporate Office was conferred with ‘Rajbhasha have been put in place. Information for the year 2021-2022 in
Nishpadan Sreshthta Puraskar’ for 2020-21 by Town Official terms of Section 22 of the Act, is as indicated below:
Language Implementation Committee (Undertakings), TOLIC,
Bengaluru. (i) Number of Cases pending as on 01/04/2021 : 4
Inspection of HAL Corporate Office was done by Committee of (ii) Number of Complaints of Sexual : 1
Parliament on Official Language on December 30-31, 2021. In Harassment received in the Financial Year
this inspection, HAL Corporate Office was the Nodal Office for 2021-2022
this Inspection. (iii) Number of Complaints disposed of during : 5
the Financial Year 2021-2022
As an Initiative in Official Language Implementation and
to make aware of the Employees towards Statutory rules of (iv) Number of Cases pending as on 31/03/2022 : -
Official Language, an OL Online Quarterly E-Margdarshika & its status
Rajbhasha Karyanvayan –Gati Evam Disha, is being published
In line with the Govt.’s directions, Awareness Programme on
from April 2021. In addition HAL Connect E-news Letter is also
Sexual Harassment were also conducted at Divisions / Offices
being issued in bilingual on weekly basis.
on December 09, 2021 to commemorate the 8th Anniversary of
In accordance with the Guidelines issued by the Department of the notification of Legislation on Sexual Harassment of Women
Official Language, Ministry of Home Affairs, New Delhi, efforts at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
have been made to prepare all the HAL Manuals in bilingual.
Additionally, all the Form/ Formats being used in HAL have also INFORMATION TECHNOLOGY (IT) INITIATIVES
been made in bilingual for day to day use in Official work. During the year, your Company has taken many IT initiatives
towards improving digital journey. Some of the major IT initiatives
A Special Hindi Webinar/ Workshop on ‘Bhashini – An and achievements of the Company during the period are:
Introduction and its Use’ was organized for OL Staff and
nominated Employees on March 10, 2022. • Project Parivartan – ERP upgradation: Project Parivartan
aimed at Centralization and standardization of ERP System
Hindi Fortnight was celebrated from September 14 to across the Company is being implemented. Various
September 28, 2021 by all the Divisions of the Company as per milestones that have been completed during current
directives issued by Department of Official Language, Ministry Financial Year include finalization of Project Charter,
of Home Affairs, New Delhi. establishment of test & development environment, As-is
Employees are being encouraged through Monthly Incentive study and documentation of business processes.
Scheme related to Official Language. Efforts have been made • Implementation of Budgetary Quotation (BQ)
to make Executive Notings in bilingual in our E-Filing System. Portal for IAF: An online BQ portal was implemented
The progress made towards OL Implementation by the Divisions Companywide for receipt of IAF budgetary quote request,
of the Company was reviewed at Corporate level. Inspections assignment to Divisions, estimation of cost, approval of
of various Divisions related to Official Language have been BQ and intimation of quote in online mode to IAF.
conducted successfully by Corporate Office from time to time • Hosting of CRM Website for Do-228 Support for
to provide guidance in this regard. Civil Customers: An online System for supporting Do
The Department of Official Language, Ministry of Home Affairs 228 Civil operations has been developed and hosted on
have assigned the responsibilities of Town Official Language HAL Website to facilitate direct online placement of RMS
Implementation Committee (TOLIC) to the Nasik Division of the Orders for spares / services, capture of customer issues/
Company and they are conducting TOLIC Meetings successfully. queries and resolution.

• Online Claim System for Defence Customers: • “The Institution of Engineers (India) (IEI) Industry Excellence
An online system for submitting of claim by HAL Award 2021” by virtue of demonstrating a higher order of
and acknowledgement by payment agency has been business excellence.
conceptualized and development is under progress. The
• “Vayoshreshtha Samman – 2021” Award under the
System will facilitate submission of claim invoice and other
Category “Best Public Sector Organisation in promoting
supporting documents and capture payment status in online
the well-being and welfare of Senior Citizens” by the
mode. This will facilitate a speedy and paperless mode for
Ministry of Social Justice and Empowerment.
processing of bills and tracking status of payments.
• Awarded 1st Rank (Gold Category) under CPSE category
• HAMS - HAL Aviation Maintenance Software has been by GeM Team for the order value placed by the Company
implemented for Performance Based Logistics (PBL) through the GeM portal.
Contract of ALH for Indian Cost Guard. This fully in-
house developed software comprised of modules such • “51st EEPC (Engineering Exports Promotion Council) India
as Fleet Management, Flight Operations, Maintenance National Awards” for Star Performers for the year 2018-
Management, Quality & Safety, Inventory Management, 19 in the product Group Defence Related items.
Human resources and Document Management.
VIGILANCE
• Paperless Office: Paperless Office initiative has been
Your Company has a well-established vigilance department
started across the Company with the objective of
headed by the Chief Vigilance Officer (CVO). Vigilance Officers
elimination of hard copy approvals and reports.
and Staff are posted to the Corporate Office and all the
• System for financial assistance for dependents of Divisions and Complex Offices of the Company.
deceased employees: A software system developed and The major vigilance activities carried out by Vigilance
implemented to provide financial assistance to the families department are as under:
of the deceased employees for capturing of requests,
verification and payment in paperless mode on fast track i. Preventive Vigilance:
basis.  System studies were carried out in various areas and
• IoT- Integration: Few initiatives have been undertaken appropriate measures were suggested to streamline
towards Internet of Things (IoT) Integration at various the procedures.
Divisions of HAL as under.  A total of 47 sessions were conducted on various
topics. Key Note address / Talk by eminent speakers
- System to capture the process parameters during
was organized to spread Vigilance awareness among
manufacturing operations in online mode by directly
employees.
reading the recorders data.
 Monthly Lecture/Achievers Series - A new initiative of
- Monitoring the Temperature and Humidity of Shelf
monthly lecture/achievers series has been commenced
Life item stores on Real Time basis with in-house
to spread awareness among stake holders on the
developed IoT Device.
topics related to vigilance administration, personality
- Automatic controlling of ovens for recording development, etc. from distinguished contributors /
temperature during operation and alerting the user speakers in the field.
after completion of operation.
ii. Vigilance Publications:
• Cyber Security: Secured Web gateway is being deployed  Two volumes of in-house Vigilance e-magazine
for protecting the IT mobile assets. “Marg Darshan” was circulated during the year on
the theme “Vigilant India Prosperous India” and
AWARDS & RECOGNITIONS “Enriching Organization Culture through Values
During the year, your Company has received various Awards and Ethics” were published covering articles from
and Recognitions. Some of the important accolades conferred internal & external writers as a part of efforts towards
to the Company are as under: spreading preventive vigilance concepts.
• Third Prize in “National Water Awards” - 2020-21 under  “Vishleshan”, a compendium of vigilance
“Best Industry for CSR activities” category instituted by interventions was also published during the year.
Ministry of Jal Shakti, Department of Water Resources, Vishleshan is a compendium of select cases bearing a
River Development and Ganga Rejuvenation. vigilance angle set of case studies to succinctly draw
up the mistakes made in a process and highlight
• Wings India Award 2022 under “Aviation Innovation lessons to be learnt and system improvements to be
Award” category by FICCI. made to avoid the same mistakes in future.

iii. System Improvement measures: Based on the Webinars were conducted at the level of Corporate Quality
recommendations of Vigilance, several system during Quality month of November 2021 involving senior
improvements have been issued by the Management most officers from DGAQA, CEMILAC, IAF, Army, ICG
in the areas of lodging claims with insurance company, along with experts from Industry and Academia.
estimation and finalization of RFQ/PO, procurement
system, vendor registration, payment of HRA, engagement • Conducted in-house training programs and workshops at
of contract labour, verification of caste certificates, non- customer bases/field units on critical/AOG prone systems,
engagement of Ex-employees who have been dismissed/ to update customer knowledge.
removed from the services of the Company on contract
• To bring in improvement in flight safety culture in our
basis, etc.
company, six officers are getting trained in “Aerospace
iv. Vigilance Awareness Week: Vigilance Awareness Safety and Accident Investigation Course” per year with
Week was conducted throughout the Organization at all approval of Air HQ.
divisions of HAL in nine different geographical locations
across country from October 26, 2021 to November 1, AUDITORS
2021, on the theme “Independent India @ 75: Self Statutory Auditors
Reliance with Integrity”.
HAL being a CPSE, Statutory Auditors of the Company were
v. During the period, 510 complaints were handled, 424 appointed by the Comptroller & Auditor General of India
regular scrutiny, 93 surprise checks and 24 CTE checks (C&AG). M/s. Maharaj N.R. Suresh and Co., LLP, Chartered
were carried out across the Company. Accountants, Bengaluru was appointed as Statutory Auditors
for auditing the Accounts of the Company for the year 2021-
QUALITY INITIATIVES AND SAFETY 22 and 18 firms of Chartered Accountants were appointed
• Nadcap certification has been obtained by Accessories as Branch Auditors. The statutory auditors’ report does not
Division Lucknow and Avionics Division Hyderabad. Both contain any qualification, reservation or adverse remarks.
the divisions have been accredited for chemical processing.
The Auditors’ Report on financial statements for the financial
• Standardization of documents for Quality Management year 2021-22 and comments of the Comptroller & Auditor
System has progressed further through the formulation of General of India (C&AG) under Section 143(6) of the Companies
two more Corporate Quality Assurance Guidelines CQAG- Act are appended to this Report.
9014 and CQAG-9015 on FOD Management System and
Cost Auditors
Operator Self Verification Program respectively. CQAG-
9015 on Operator Self Verification Program has been Your Company has appointed M/s. GNV & Associates, Cost
formulated in co-ordination with DGAQA HQ for joint & Management Accountants as Cost Auditors for conducting
release. the Cost Audit of the Company for the year 2021-22. The
Company maintains cost records as specified by the Central
• Utilisation of Third Party Inspection Agencies has also
Government under Section 148(1) of the Companies Act,
been started by Engine Division Bangalore (in addition to
which are audited by Cost Auditors.
LCA & Helicopter Divisions) for inspection of outsourced
components to support the cause of “Make in India” Internal Auditors
initiative and optimum utilization of HAL inspectors in core
areas of manufacturing/assembly. Empanelment process The Company has appointed 14 (fourteen) Nos. of Chartered
for 7th TPI agency is under progress in coordination with Accountant firms for carrying out internal audit of the Company
DGAQA HQ New Delhi. for the year 2021-22.
• As part of digitization of quality functions, online DGAQA Secretarial Auditor

Memo generation & clearance by RDAQA offices has
successfully commenced in 17 Production divisions. In terms of Section 204(1) of the Companies Act, the Company
has engaged M/s. DPSP & Associates, Company Secretaries,
• Quality Management System of AMD Nasik and Engine Bengaluru to conduct Secretarial Audit of the Company for the
Division Bangalore have been additionally certified to year 2021-22. The Secretarial Audit Report is annexed to this
AS9110C which stipulates the QMS requirements of Report as Annexure - IV and forms part of Annual-Report.
Aviation Maintenance Organization.
The management’s reply on the qualification of the Secretarial
• Under the Azadi ka Amrit Mahotsav celebration to mark Auditor, form part of Secretarial Audit Report, which is self-
the 75th anniversary of India’s independence, four enriching explanatory.

Annual Secretarial Compliance Report (d) the directors have prepared the annual accounts on a
“going concern” basis;
The Company has filed the Annual Secretarial Compliance
Report for the year 2021-22 with the BSE Ltd and National (e) the directors have laid down internal financial controls
Stock Exchange of India Limited. The report was received from which are being followed by the Company and that
a Practising Company Secretary and filed within the stipulated such internal controls are adequate and are operating
time as specified under Regulation 24A of the SEBI (LODR) effectively;
Regulations.
(f) the directors have devised proper systems to ensure
CORPORATE GOVERNANCE REPORT compliance with the provisions of all applicable laws and
that such systems were adequate and operating effectively.
In terms of Regulations 34 read with Schedule V of SEBI
(LODR) Regulations and DPE Guidelines, a report on Corporate ACKNOWLEDGEMENT
Governance for the year ended March 31, 2022 has been
prepared and annexed to this Report. The Company’s Secretarial Your Directors are extremely thankful and acknowledge the
Auditor has issued a certificate on Corporate Governance, excellent support extended by the Government of India, in
which is appended to the Corporate Governance Report. particular the Ministry of Defence, Department of Defence
Production, Defence Acquisition and Defence Finance as
MANAGEMENT DISCUSSION AND ANALYSIS REPORT well as other Ministries of the Government of India in all the
endeavours of the Company.
As per Regulations 34(2)(e) of the SEBI (LODR) Regulations, the
Management Discussion and Analysis Report (MDAR) forms Your Directors also place on record their sincere appreciation
part of the Annual Report of the Company. towards the Company’s valued customers, in particular the
Indian Defence Services, for the support and confidence
VIGIL MECHANISM reposed by them in the Management of the Company, and
The Company has a Whistle Blower Policy approved by the look forward to the continuance of this mutually supportive
Board. The details of the Whistle Blower Policy are explained in relationship in the future.
the Corporate Governance Report and the same is hosted on
The Company wishes to place on record its appreciation for the
the Company’s website at www.hal-india.co.in.
cooperation extended and services provided by the Comptroller
Employees are encouraged to raise any of their concerns by & Auditor General of India (C&AG), the Principal Director of
way of whistle blowing and none of the employees have been Commercial Audit & Ex-officio Member, Audit Board, Statutory/
denied access to the Chairman of the Audit Committee. Internal Auditors, Cost Auditors, Secretarial Auditors, Bankers,
Collaborators, JV Partners and Suppliers.
DIRECTORS’ RESPONSIBILITY STATEMENT
Your Directors are also thankful to the shareholders for
Pursuant to the provisions of Section 134(3)(c) of the Companies the trust and confidence reposed in the Company and look
Act, your Directors state that: forward to their continued support to propel the Company to
greater heights.
(a) In the preparation of the annual accounts for the year
ended March 31, 2022, the applicable accounting Your Directors also wish to place on record their deep sense
standards have been followed along with proper of appreciation for the committed services by the Company’s
explanation relating to material departures; Executives and Workmen for progress and prosperity of the
Company.
(b) the directors have selected such accounting policies and
applied them consistently and made judgments and For and on behalf of the Board of Directors
estimates that are reasonable and prudent, so as to give a Hindustan Aeronautics Limited
true and fair view of the state of affairs of the Company
as on March 31, 2022 and of the profit and loss of the
Company for the year ended on that date;
(c) the directors have taken proper and sufficient care for
the maintenance of adequate accounting records in (R. Madhavan)
accordance with the provisions of this Act for safeguarding Chairman and Managing Director
the assets of the Company and for preventing and Place : Bengaluru
detecting fraud and other irregularities; Date : July 15, 2022

Annexure- I to Board’s Report
46
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/ arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the
Companies Act, 2013 including certain arms length transactions under third provison thereto
1. Details of contracts or arrangement or transactions not at arm’s length basis:
Sl. Name (s) of Nature of Nature of Duration of Salient terms of the contracts or Justification for entering into such contracts or Date(s) of Amount Date on which
No the related relationship contracts / the contracts / arrangements or transactions including arrangements or transactions approval paid as the special
party arrangements arrangements the value, if any by the advances,

resolution
/ transactions / transactions Board if any:
was passed
in General
Meeting as
required
under first
provision to
Section 188
1 TATA –HAL Joint Venture Purchase - Purchase Order for purchase of used In order to close the pending activities of JVC for May 10, - -
Technologies Contract on Computers, Accessories and Office winding up, the contract entered on L1 basis for 2021
Ltd Limited Tender equipment at an amount of `1.66 Lakhs plus purchase.
basis applicable taxes;
2 Indo-Russian Subsidiary Service 1 year Reimbursement of the monthly pay and Deputation of an employee to JVC June 28, - -
Helicopter Ltd Contract on allowances to an extent of ` 2.23 Lakhs. 2021
(IRHL) Nomination Balance pay and allowances (including PRP)
Basis payable to Shri Satyanarayan Sharma GN as
per his entitlement over and above ` 2.23
Lakhs/month would be borne by HAL.
3 BAeHAL Joint Venture Rate Contract 1 year Rate Contract with BAeHAL Software Ltd In order to ensure continued availability of the ERP July 16, - -
Software Ltd for AMC of IFS-ERP at a total value of ` services and obtaining support for the ERP Database 2021
2.27 Crore and advance payment at the from the OEMs.
commencement of AMC services for every
six months.
4 Naini Aerospace Subsidiary Extension of 3 years Signing of MoU between HAL and NAeL In order to utilize the services of trained manpower. July 16, - -
Limited (NAeL) MoU between for a period of 3 years from the date of 2021
HAL and NAeL execution for utilizing the services of trained
manpower of NAeL.
party arrangements arrangements the value, if any by the advances, resolution
was passed
in General
Meeting as
required
under first
provision to
Section 188
5 HATSOFF- Joint Venture Service - (i) To repair one Weather Radar Control Unit - August 13, - -
Helicopter Contract (unit Sl. No. 99213899) with repair price of 2021
Training Pvt Ltd. `2,17,786.00.
(HATSOFF)
(ii) To repair two nos. of Radio Management
Unit (unit Sl. No. 37806 & 43480),for which
Rough Order Magnitude (ROM) price for
repairing each unit is `19,00,000.00
(iii) To supply one no. of new Radio

Management Unit with the Quoted price for
this unit of `30,71,978.00 including GST.
6 Indo-Russian Joint Venture Supply Placement of Order on IRAL for procurement - October 25, - -
Aviation Ltd Contract of 173 lines of BOI Spares / Raw Material/ 2021
(IRAL) through Consumables required against RMSO/ ROH
Limited tender task of MiG & Su-30 ROH Programme at
basis total value USD 2,943,481.00 and landed
cost works out to `2869.52 Lakhs including
Custom, IGST and other duties on assessable
value (100% of basic landed cost) and F & I
@ 1.26% on basic landed cost @ 1 USD =
INR 73.72.
7 Indo-Russian Joint Venture Supply - Procurement of 152 types of project - October 25, - -
Aviation Ltd Contract materials (28 types of heavy forgings, 23 2021
(IRAL) through types of CAT-A aggregates and 101 types
Limited tender of readymade engine & aggregate spares)
basis required against ROH, Mfg, RMSO and
warranty task of AL-31FP Engine at total
value USD 14,842,596.13 and landed cost
Annual Report 2021-22

works out to `13,326.32 Lakhs including
Custom duty, IGST and other duties and F & I
47
@ 0.19% (1 USD = INR 73.29).
party arrangements arrangements the value, if any by the advances, resolution
was passed
48
in General
Meeting as
required
under first
provision to
Section 188
8 Samtel-HAL Joint Venture Service 3 Years Repair of 294 nos. Color Multi-Functional - October 25, - -
Display Systems Contract on Display (CMFD) (223 nos. CMFD55S & 71 2021
Limited (SHDS) Proprietary nos. CMFD66S) of Su-30 MKI Aircrafts for
basis the period 3 years i.e. from 2021-22 to 2023-
24. Total CIF value of proposal is ` 2722.59
Lakhs F.O.R. HAL Korwa Considering F&I @
0.77% and GST @ 18%.

9 Indo-Russian Joint Venture Supply 1 Year Supply of 375 types of spares for - January 5, - -
Aviation Ltd Contract various platforms at a total value of USD 2022
(IRAL) through 4,236,339.00 on CIP Mumbai airport
Limited tender basis. The total landed cost works out to
basis ` 39,77,87,682.27 inclusive of 27.98%
towards total duties and Freight & Insurance.
10 Indo-Russian Joint Venture Supply -- Placement of Order on single tender/ -- February - -
Aviation Ltd Contract nomination basis for supply of 1 unit of 10, 2022
(IRAL) through Indigenously developed combined engine
Single tender controller (KRD-99B-Prototype-3) required
Nomination against RMSO after negotiation with the
basis party, keeping the maximum cap at a total
landed value of `87,71,490 on FOR basis
(including GST ` 4,17,690).
2. Details of material contracts or arrangements or transactions at arm’s length basis.

Sl No Name(s) of the Nature of Nature of Duration of Salient terms of the Date(s) of Amount paid Remarks
related party relationship contracts / the contracts / contracts or arrangements approval by as advances, if
arrangements arrangements or transactions including the Board, if any:
/ transactions / transactions the value, if any any
------ ------ ------ ------ NIL ------ ------ ------ ------
For and on behalf of Board of Directors

(R. Madhavan)
Chairman and Managing Director
Date: July 15, 2022
Place: Bengaluru
Annexure II to Board’s Report
REPORT ON FINANCIAL PERFORMANCE OF THE JOINT VENTURE COMPANIES AND SUBSIDIARY COMPANIES
(a) HAL has established 12 (twelve) commercial Joint Venture Companies (JVCs) in collaboration with leading international
aviation and Indian Organizations and 2 (two) subsidiary Companies. Besides, the Company also formed 2 (two) Section-8
(non-profit) Companies.
During the year under review, the total turnover reported by the JVCs/Subsidiaries is ` 395.67 Crs, as per details given below:
(Amount in ` Crores)
Sl. Name of the JVCs / Subsidiaries HAL share Turnover Profit
No. holding (%) Before Tax
1 BAeHAL Software Ltd. 49 14.46 (2.98)
2 Indo Russian Aviation Ltd. 48 70.30 10.69
3 Safran HAL Aircraft Engines Pvt. Ltd. 50 76.68 8.27
4 Samtel HAL Display System Ltd. 40 28.19 0.25
5 HAL-Edgewood Technologies Pvt. Ltd.# 50 -- --
6 HALBIT Avionics Pvt. Ltd. 50 3.83 0.59
7 Infotech HAL Ltd.## 50 1.91 (0.14)
8 HATSOFF Helicopter Training Pvt. Ltd. 50 46.85 9.10
9 TATA-HAL Technologies Ltd.@ 50 -- --
10 International Aerospace Manufacturing Pvt. Ltd. 50 148.54 9.84
11 Multi-Role Transport Aircraft Ltd.** 50 -- (10.77)
12 Aerospace & Aviation Sector Skill Council (AASSC) * 50 0.78 --
13 Helicopter Engines MRO Private Ltd.** 50 -- (0.50)
14 Defence Innovation Organisation* 50 -- --
Sub - Total 391.54 24.35
Subsidiaries
15 Indo-Russian Helicopters Limited** 50.5 -- (0.33)
16 Naini Aerospace Limited 100 4.13 (12.82)
Sub - Total 4.13 (13.15)
Grand Total 395.67 11.20
Note: Figures in brackets () indicate loss
* Section-8 (non-profit) Companies.
** Not commenced operation
# JV has not commenced business activities after COVID-19.
## Unaudited
@ TATA-HAL Technologies Ltd (THTL) was operationally closed on 31st March 2020. In 58th Board Meeting and the Extraordinary
General Meeting (EGM) of THTL held on 8th June 2021, the liquidation of the Company was approved and Liquidator was
appointed to complete the liquidation process. Presently, there is no pending dues/issues in THTL-JV. Hence, the submission
of dissolution application to National Company Law Tribunal (NCLT) is under process by Liquidator.

(b) During the current financial year, 2 (two) JVCs viz. Indo-Russian Aviation Ltd and International Aerospace Manufacturing Pvt
Ltd. have together paid a dividend of ` 1.96 Crore to HAL.
Sl. No. Name of JVCs ` In Crs
1 Indo-Russian Aviation Ltd 1.87
2 International Aerospace Manufacturing Pvt Ltd 0.09
Total 1.96
For and on behalf of the Board of Directors

(R. Madhavan)
Chairman and Managing Director
Date : July 15, 2022
Place : Bengaluru

Annexure III to Board’s Report
ANNUAL REPORT ON Corporate Social Responsibility (CSR) ACTIVITIES FOR THE FINANCIAL YEAR 2021-22
1. Brief outline on CSR Policy of the Company:

• The CSR Policy of the Company is in consonance with the CSR Policy framework enshrined in the Section 135 of
Companies Act, 2013, Companies (CSR Policy) Rules, 2014 as amended vide Notification No. CSR-05/3/2020-CSR-
MCA dated 22nd January 2021 by Ministry of Corporate Affairs, Government of India and Guidelines on Corporate
Social Responsibility and Sustainability for Central Public Sector Enterprises issued by Department of Public Enterprises,
Government of India.
• It shall apply to all CSR Projects / Programmes undertaken by the Company as the activities listed in Schedule-VII of the
Act, within the geographical limits of India alone, preferably towards the benefit of marginalized, disadvantaged, poor
and deprived sections of the community and the environment
• As per the mandate of Companies Act 2013, the Company has been spending 2% of its average net profit (calculated
in accordance with the provisions of Section 198 of the Companies Act, 2013) during the three immediately preceding
financial years under different heads stipulated under Schedule VII of the said Act.
• By prioritizing HAL focus on Education & Training, Skill Development, Health & Well-Being, Sports, Green Energy,
Cleanness, Drinking water supply, River Rejuvenation. It also focus on preserving art and heritage as well as supporting
action against climate change.
• For undertaking CSR projects / programs preference is given to the local area / vicinity of the Divisions / Complexes
where it operates based on baseline survey considering the theme identified by the DPE for undertaking CSR activities
by Central Public Sector Enterprises (CPSEs), for spending the amount earmarked for Corporate Social Responsibility
Projects / Activities. In this regard, it is to state that Gram Sabhas and Panchayati Raj institutions at the village level are
important and reliable sources for assessing the social, economic and environmental needs in rural areas. Therefore, as
far as possible they should be consulted in planning for CSR Projects / activities.
2. Composition of CSR Committee (as on March 31, 2022):

Sl. Name of Director Designation / Nature of Number of Number of
No Directorship meetings of meetings of
CSR Committee CSR Committee
held during the attended
year during the year
1 Rear Admiral K C Sekhar, AVSM, VSM Independent Director, Chairman 2 2
(Retd.)*
2 Dr Divya Gupta* Independent Director, Chairperson 1 1
3 Shri R Madhavan* CMD and Addl. Charge of Director 1 0
(Operations), Member
4 Shri C.B. Ananthkrishnan Director (Finance) & CFO, Member 3 3
5 Shri M S Velpari* Director (Operations), Member 2 2
6 Shri Alok Verma Director (HR), Member 3 3
*Note
 Rear Admiral K C Sekhar ceased as Independent Director on the Board of the Company due to completion of his tenure
on 23.07.2021.
 Dr Divya Gupta appointed as Independent Director w.e.f 28.12.2021 and appointed as Chairperson of the Committee
w.e.f 10.02.2022
 Shri R Madhavan, CMD has entrusted additional charge of the post of Director (Operations) for a period of three months
with effect from 01.03.2022 or till the post of Director (Operations) is vacant whichever is earlier.
 Shri M S Velpari ceased as Director (Operations) on the Board of the Company due to his superannuation on 28.02.2022.

All CEOs of the Complexes, General Manager (Finance) and Head of Corporate CSR are permanent invitees to the Committee.
Company Secretary is the Secretary of the Committee
3. 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. The web-links are as under:
The web-links are as under:
• Composition of CSR Committee:
https://hal-india.co.in/Common/Uploads/Finance/CSR_Composition.pdf
• CSR Policy approved by the Board:
https://hal-india.co.in/Common/Uploads/Finance/CSR_Policy-2021.pdf
• CSR Projects approved by the Board:
https://hal-india.co.in/Common/Uploads/Finance/CSR%20Projects%2021-22.pdf
4. The details of Impact assessment of CSR projects carried out in pursuance of Sub-Rule (3) of Rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
The details of Impact Assessment study of following CSR Projects as applicable under the Rule, has been conducted by
Independent Agencies, which has been enclosed to this report:
• Development of Dhondi Ganga Ghat at Sarsaul, Aima Gram Panchayat, Block-Sarsol, District Kanpur Nagar
• Development of Siddhnath Ganga Ghat at Jajmau, Ward No. 96, Jajmau, Kanpur City
• Improvement & Development of Bahrauli School, Barabanki,
• Installation of Solar Street Light, Lucknow & Barabanki
• Renovation and Construction of School, Barabanki
• Centre of Excellence (Skill Development Program), Technical Training Institute, Bangalore.
5. Details of the amount available for set off in pursuance of Sub-rule (3) of Rule 7 of the Companies (Corporate
Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any
Sl. Financial Year Amount available Amount required to

No. for set-off from be set- off for the
preceding financial financial year, if any
years (` in Crore) (` in Crore)
1 2018-19 Nil Nil
2 2019-20 Nil Nil
3 2020-21 6.68 6.68
TOTAL 6.68 6.68
(Rs. in Crores)
6. Average net profit of the Company as per Section 135(5) 3942.08
7. (a) Two Percent of average net profit of the Company as per Section 135(5). 78.84
(b) Surplus arising out of the CSR Projects or Programmes or activities of the previous financial years. 8.84
(c) Amount required to be set off for the Financial Year, if any 6.68
(d) Total CSR Obligation for the Financial Year (7a+7b-7c). 81.00

8. (a) CSR amount spent or unspent for the Financial Year:
Total Amount Amount Unspent (in `)
Spent for the Total Amount transferred to Amount transferred to any fund specified under
Financial Year. Unspent CSR Account as per Schedule VII as per second proviso to section 135(5)
(` in Crore) section 135(6)
Amount Date of transfer Name of the Amount Date of transfer
(` in Crore) Fund
78.27 3.00 29/04/2022 Nil Nil NA
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name Item Local Location of the Project Amount Amount Amount Mode of Mode of
No. of the from the area project duration allocated spent transferred to Implementation Implementation
Project list of (Yes/ for the in the Unspent CSR - Direct (Yes/No) - Through
activities No) project current Account for Implementing
in (in `) financial the project as Agency
Schedule State District Year per Section Name CSR
VII to (in `) 135(6) Registration
the Act (in `) number
Details of CSR amount of ` 31.44 Crores spent against ongoing projects for the financial year 2021-22 is enclosed at Enclosure- I
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name Item from the list of Local area Location of the project Amount spent Mode of Mode of implementation
No. of the activities in schedule (Yes/ No) for the project implementation – Through implementing
Project VII to the Act (in `) - Direct (Yes/No) agency
State. District. Name CSR Registration
number
Details of CSR amount of ` 43.06 Crores spent against other than ongoing projects for the financial year 2021-22 is enclosed at Enclosure- II
(` in Crores)
(d) Amount spent on Administrative Overhead 3.73
(e) Amount spent on Impact Assessment, if applicable 0.04
(f) Total Amount spent for the Financial Year (8b+8c+8d+8e) 78.27
(g) Excess Amount for set off, if any
Sl. No. Particular Amount (In `)

(i) Two percent of average net profit of the company as per section 135(5) NA
(ii) Total amount spent for the Financial Year NA
(iii) Excess amount spent for the financial year [(ii)-(i)] NA
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous NA
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] NA

9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sl. Preceding Amount Amount Amount transferred to any fund specified Amount
No. Financial transferred spent in the under Schedule VII as per section 135(6), if remaining to
Year to Unspent reporting any be spent in
CSR Account Financial Name of the Amount (` in Date of succeeding
under Year (` in Fund Crores) transfer financial
section 135 Crores) years. (in `)
(6) (` in
Crores)
1. 2020-21 Nil 90.52 Nil Nil NA Nil
TOTAL Nil 244.98 Nil Nil NA Nil
(b) Details of CSR Amount spent in the financial year for Ongoing Projects of the preceding financial year(s)
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project Name Financial Year Project Total Amount Cumulative Status
No. ID of the in which the duration amount spent on the amount spent of the
Project project was allocated project in at the end project -
commenced for the the reporting of reporting Completed/
project Financial Financial Ongoing
(in `) Year (in `) Year. (in `)
Details of CSR amount of ` 20.79 Crores spent in the financial year for Ongoing Projects of the preceding financial year(s) is
enclosed at Enclosure- III
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired
through CSR spent in the financial year
(Asset-wise details).
(a) Date of creation or acquisition of the capital asset(s) - Nil
(b) Amount of CSR spent for creation or acquisition of capital asset - Nil
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is - NA
registered, their address etc.
(d) Provide details of the capital asset(s) created or acquired (Including complete address and location - Nil
of the capital asset).

11. Specify the reason(s), if the Company has failed to spend two percent of the average net profit as per section
135(5).
• In respect of one of the projects, ”To support the Institute of Gastroenterology Sciences and Organ Transplant (IGOT),
Bangalore by providing requisite equipment to Central Sterile Service Department (CSSD)”, worth Rs. Two Crores, the
vendor requested IGOT to extend the delivery period citing that it has to import CSSD Equipment from Germany and
Sweden. Considering the location of the equipment and the tension prevalent therein involving Germany, Russia and
Ukraine, and also in view of COVID-19 Pandemic which hampered the vessels movements across the international
borders, there was a delay which resulted in non-receipt of the items before 31st March, 2022.
• To support Kidwai Memorial Institute of Oncology for increasing the Bed strength by 350 Nos., was taken up as one
of the Projects with an overall budget of Rs. One hundred and Sixty Lakhs. Bids were issued on 07.1.2022. During the
FY 2021-22, medical equipment (i.e., 5 - Defibrillators and 50 Fowler Beds) worth of Rs. 13.24 Lakhs were delivered /
donated to the Hospital. The delivery of the balance 300 Semi-Fowler Beds which amounts to Rs. 44 Lakhs were spilled
over to the current FY 2022-23.
• The project “Development of Health Centre at South 24 Parganas, West Bengal”, worth Rs. 42 Lakhs, was initially
sanctioned to be implemented by State Government. Subsequently, as there were changes in the CSR Rules, HAL was
directly assigned as the implementing agency with the approval of the Board of Directors at its 452nd Meeting held on
05/01/2022. Further, the Project had to be re-tendered due to Administrative Reasons. Hence, this project was carried
forward to FY 2022-23.
• In view of the above, in-line with the provisions of the Companies (Amendment) Act, 2019; Amendment Act, 2020; CSR
Amendment Rules 2021; an amount of Rs. Three Crores was deposited to a special account (Unspent Corporate Social
Responsibility Account for the Financial Year 2021-22) on 29th April, 2022.
(Alok Verma) (Dr. Divya Gupta)

Director (HR) Chairman, CSR & SD Committee

Enclosure - I
8(b) Details of CSR amount spent against ongoing projects for the Financial Year 2021-22
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name of the Project Item from Local Location of the project Project Amount Amount Amount Mode of Mode of Implementation - Through
56
No. the list of area duration allocated spent transferred to Implementation Implementing Agency
activities in (Yes/ State District - Years for the in the Unspent CSR -Direct (Yes/No) Name CSR
Schedule VII No) project (` current Account for the Registration
to the Act. in Lakhs) financial project as per number
Year (` in Section 135(6)
Lakhs) (` in Lakhs)
1 Augmenting of HAL – IISc Skill Development Centre II - Skill Yes Karnataka Chitradurga 2 Years 84.84 84.84 0.00 No IISc CSR00007370
under CSR - Establishment of Additional Skill Development
Development Labs at HAL – IISc SDC at Challakere,
Chitradurga. (Total Project Cost: ` 327.39 lakhs,02
Year Project, 2021-22 : ` 84.84 Lakhs, 2022-23:
242.55 Lakhs)
2 Kumudvathi Phase 2 : Lake De-siltation, afforestation IV - Yes Karnataka Bangalore 2 Years 66.00 45.48 20.52 No International CSR000000683
& water literacy (Total Project Cost : ` 123.00 lakhs, Environment Association for Human
2021-22: ` 66 lakhs, 2022-23: ` 55.00 lakhs) Values (IAHV) – A

Sister Organization of
The Art of Living.
3 Augmenting of HAL – IISc Skill Development Centre II - Skill Yes Karnataka Chitradurga 2 Years 624.75 589.51 35.24 No IISc CSR00007370
under CSR - Solar Power Generation Plant at HAL - Development
IISc - SDC at Challakere, Chitradurga. (Total Project
Cost : ` 624.75 lakhs, 2021-22: ` 589.51 lakhs,
2022-23: ` 35.24 lakhs)
4 To support the Institute of Gastroenterology Sciences I - Healthcare Yes Karnataka Bangalore 2 Years 200.00 0.00 200.00 No Institute of CSR00009619
and Organ Transplant (IGOT) by providing requisite Gastroenterology
equipment to Central Sterile Service Department Sciences and Organ
(CSSD). (Total Project Cost : ` 200.00 lakhs, 2021-22: Transplant (IGOT)
-, 2022-23: ` 200.00 lakhs)
5 To support Kidwai Memorial Institute of Oncology for I - Healthcare Yes Karnataka Bangalore 2 Years 160.00 13.24 43.23 Yes HAL NA
increasing the Bed strength by 350 Nos (Total Project Cost
: ` 200.00 lakhs, 2021-22: -, 2022-23: ` 200.00 lakhs)
6 Tata Institute of Social Sciences -Baseline Study Yes Odisha, Koraput, 2 Years 12.43 12.43 0.00 YES HAL NA
Uttar Pradesh, Lucknow,
Maharashtra Nasik
7 Infrastructure Development works in the Adopted II - Livelyhood Yes Karnataka Kolar/ 2 Years 234.92 222.76 0.00 Yes HAL NA
Govt. ITI's and TTI, Bangalore Generation/ Bangalore
Skill
Development
8 Strengthening of infrastructure for quality seed and IV - Yes Karnataka Bangalore 2 Years 60.00 58.84 1.16 No ICAR-IIHR CSR00014307
planting material at IIHR, Bangalore (Total Project Environment
Cost: 253 Lakhs, 02 Year Project, 2021-22 : ` 60
Lakhs, 2022-23: 193 Lakhs).
9 Establishment of Centralized Kitchen through the I - Education Yes Karnataka Bangalore 2 Years 25.00 24.85 0.00 No The Akshaya Patra CSR00000286
Akshaya Patra Foundation Urban District, Foundation
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Lakhs) (` in Lakhs)
10 Establishment of Advance centre for Bio energy IV & IX - Yes Karnataka Bangalore 2 Year 189.00 176.20 12.80 No University of CSR00016598
Research at University of Agricultural Sciences, Livelihood Urban District Agricultural Sciences,
Bangalore. (Total Project Cost : 200 Lakhs, 03 Year Generation Bangalore
Project, 2020-21 : ` 11 Lakhs, 2021-22 : ` 176.20 / Skill
Lakhs, 2022-23: 12.80 Lakhs). Development
and
Environment
Sustainability
11 Promoting Science, Technology, Engineering, and II - Education Yes Karnataka Bangalore 2 Years 45.00 36.83 0.00 YES HAL NA
Mathematics (STEM) education through interactive Urban District,
labs in Government Schools.
12 Bus shelter and toilet block construction in villages I & x - Rural Yes Karnataka Gubbi taluk, 2 Years 24.00 22.25 0.00 YES HAL NA
around HAL LUH project site in Gubbi Taluk Development & Tumkur
Sanitation District
13 HAL Footbal Academy VII - Sports Yes Karnataka Bangalore 2 Years 23.00 19.19 0.00 YES HAL NA
Urban District
14 Establishment of Covid Care Center I - Healthcare Yes Karnataka Bangalore 2 Years 3.07 3.44 0.00 YES HAL NA
Urban District
15 Development of Public Road of approximately XI - Others Yes Karnataka Bangalore 2 Years 5.00 0.00 5.00 YES HAL NA
250 meters length near Hosa Nagar Slum in (Slum Urban District
Sadanandnagar, Bangalore. Development)
16 Construction/renovation of school building of Haricharan II - Education Yes West Bengal Barrackpore, 3 Years 11.78 4.96 6.82 No Through Barrackpore Not applicable
Lala Adarsha Prathamick Vidyalaya, Barrackpore. 24 Parganas Municipality as Project
(North) approved
before 01-4-
2021
17 Promotion of Education in Government School II - Education Yes West Bengal 24 Parganas 2 Years 2.60 2.60 0.00 No Through BDO, Not applicable
including infrastructure facilities, Rain water (South) Diamound Harbour as Project
conservation, Solar Energy etc. At Mashat Girls' High approved
School under Diamond Harbour-I Development Block, before 01-4-
South 24 Parganas, West Bengal 2021
18 Construction of School Hostel Building & Toilet Block II - Education Yes West Bengal Parganas 2 Years 1.19 1.19 0.00 No Through BDO, Kulpi Not applicable
at Madan Mohanpur RCS Vidyamondir under Kulpi (South) as Project
Block, South 24 Parganas, West Bengal approved
before 01-4-
2021
19 Climate Smart sustainable Organic Agriculture X - Rural Yes West Bengal Nadia 3 Years 3.72 0.00 3.72 YES HAL NA
through Natural Farming Practices & Solar Pump Development
Irrigation at Santipur Development Block, North 24

Parganas, West Bengal
20 Development of Health Centre I - Healthcare Yes West Bengal South 24 3 Years 42.00 0.00 42.00 Yes HAL NA
Parganas
57
21 Development of Health Centre at Amdanga Block I - Healthcare Yes West Bengal North 24 2 Years 17.00 0.00 17.00 Yes HAL NA
Parganas
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
58
Lakhs) (` in Lakhs)
22 Development of Infrastructure of a Govt. Primary II - Education Yes West Bengal North 24 2 Years 28.00 0.00 28.00 Yes HAL NA
School at Barrackpore Parganas
23 Food, Nutritional items and other facilities to run the I - Nutrition Yes Odisha Koraput 3 Years 14.70 13.52 0.00 No District Social Welfare CSR 00003145
Crèche facility Centers Officer
24 Additional class Room in 12 different Schools. II - Education Yes Odisha Koraput 2 Years 46.45 35.51 0.00 YES HAL NA
25 Infrastructure Development at Deaf and Dumb II - Education Yes Odisha Koraput 2 Years 26.26 22.09 0.00 YES HAL NA
School, Sunabeda-1
26 Pre-Birth waiting room at Public Health Centre, I - Healthcare Yes Odisha Koraput 2 Years 1.68 0.83 0.00 YES HAL NA
Rabanaguda
27 Installation of Sanitary Napkin Incinerators at I - Healthcare Yes Odisha Koraput 2 Years 0.02 0.00 0.00 YES HAL NA

residential girls schools (10 Nos)
28 Rejuvenation of Jagannath Sagar Lake at Jeypore IV - Yes Odisha Koraput 2 Years 100.00 0.00 0.00 YES HAL NA
Environment
Sustainability
29 Infrastructure Development at SAI-HAL Sports Centre : VII - Sports Yes Odisha Koraput 2 Years 264.15 263.03 0.00 YES HAL NA
- Provision of Synthetic Foot Ball Court with Sub-Base
- Chain link Fencing on entrance side of the Football
Ground
30 Construction of Approach Road with Drain & X - Rural Yes Odisha Koraput 2 Years 55.50 55.22 0.00 YES HAL NA
Culvert in Chakroli - Rajpalama, Kakigaon villages & Development
Orphanage
31 Establishment of Model Schools equipped with Smart II - Education Yes Odisha Koraput 2 Years 162.00 145.00 0.00 YES HAL NA
classrooms
32 Provision of Infrastructure Facility in Rural area by X - Rural Yes Maharashtra Nasik 2 Years 11.85 7.22 0.00 Yes HAL NA
Construction (s) / Resurfacing of Roads. Development
33 Construction of Sewage treatment plant X - Rural Yes Maharashtra Govardhan 2 Years 10.36 0.00 0.00 Yes HAL NA
Development village, Nasik
34 Waste management Plant i.e. conversion of X - Rural Yes Maharashtra Nasik 2 Years 16.25 16.25 0.00 YES HAL NA
municipal waste, food waste etc. to Bio Gas at Post Development
Pimpalgaon (B), Tal Niphad
35 Construction / repair of Check Dams at Waldevi River IV - Yes Maharashtra Nashik 2 Years 30.90 67.96 0.00 No Through State Not applicable
at Dhadegaon, Anna Ganpati (Deolali), Porjevasti Environment Irrigation Department as Project
(Vadner) village, Waldevi River Sustainability approved
before 01-4-
2021
36 Construction of 3 New ZP School Buildings in Nasik II - Promoting Yes Maharashtra Nasik 2 Years 212.89 122.87 0.00 YES HAL NA
District Education
37 Ambulance to District Administration / Govt. Hospitals I - Health Care Yes Maharashtra Nasik 2 Years 18.50 18.50 0.00 YES HAL NA
to Govt. Hospital
38 Construction of Skill Development Centre at RGIPT, II - Skill Yes Uttar Pradesh Amethi 3 Years 75.00 74.99 0.00 No Rajiv Gandhi Institute CSR00010866
Amethi for its programme RISE. (Total Value of Development of Petroleum
Project: ` 225.00 lakhs 03 Year Project, 2020-21 : Technology, Jais,
` 75 lakhs, 2021-22 : ` 75 Lakhs, 2022-23: `75 Lakh) Amethi
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Lakhs) (` in Lakhs)
39 GYAN ARPAN for imparting remedial tuitions/ II - Education Yes Uttar Pradesh Amethi 4Years 50.00 49.97 0.00 No Rajiv Gandhi Institute CSR00010866
coaching for students to be undertaken by RGIPT, of Petroleum
Amethi - second year funding of 4 years project (Total Technology, Jais,
Value of Project: ` 200.00 lakhs, 04 Year Project, Amethi
2020-21 : ` 50.00 lakhs, 2021-22 : ` 50.00 Lakhs,
2022-23: ` 50.00 Lakhs and 2023-24: ` 50.00 Lakhs)
40 Provision for drinking water facility, upgradation of I & III - Yes Uttar Pradesh Amethi 3 Years 56.08 72.08 0.00 No Through implementing Not applicable
waiting room, toilet block, facilities for easy access Sanitation, agency as Project
for PWDs/ women etc. at Railways stations: Amethi, Drinking Water approved
Gauriganj, Musafirkhana before 01-4-
2021
41 Construction of hostels, computer lab, etc. at II - Education, Yes Uttar Pradesh Amethi 2 Years 25.36 23.26 0.00 No Through implementing Not applicable
Kasturba Gandhi Residential Girls Schools at various Women agency as Project
Blocks in Amethi District Empowerment approved
before 01-4-
2021
42 Construction of toilets in Anganwadis in Amethi I & II - Yes Uttar Pradesh Amethi 3 Years 75.43 68.29 7.14 No Through implementing Not applicable
District Sanitation, agency as Project
Education approved
before 01-4-
2021
43 Promotion of Healthcare & Ensuring Environmental I - Sanitation Yes Uttar Pradesh Kanpur 2 Years 163.50 156.37 0.00 Yes HAL NA
Sustainability ( Total Project Cost: 472 Lakhs, 02 Year
Project, 2021-22 : ` 148 Lakhs, 2022-23: 324 Lakhs).
(i) Setting up Waste Management System
(ii) Vehicles for legacy & fresh wastes
(iii) Road Sweeper / Air cleaning system
(iv) Medical Camps in Gram Panchayat - Sarsaul,
Karvigawansard, Fufwar Suithok, Sawaijpur etc.,
44 Wholesome Development of villages nearby to HAL X - Rural Yes Uttar Pradesh Kanpur 2 Years 141.36 132.95 0.00 Yes HAL NA
TAD Kanpur Development
a) Construction of Road
b) Community Center & Playground
c) Electric Work for Civil Construction
d) Installation of High Mast Lamp
45 Setting up Waste Management System - (Installation IV - Healthcare Yes Uttar Pradesh Kanpur 2 Years 45.94 45.94 0.00 Yes HAL NA
of Ballastic Separator, Installation of Trommel (02 &
Nos), Conveyor & Feeding System along with Environment
installation.) Sustainability
46 Infrastructure Enhancement at Community Health I - Healthcare Yes Uttar Pradesh Kanpur 2 Years 27.89 25.76 0.00 Yes HAL NA
Center (CHC), Sarsaul, Kanpur – &

(a) Construction of Road & Shelter (Ran Basera) with Sanitation
Toilet for Ladies & Gents, Vehicle Parking Shed.
(b) Allied Electrical Works
59
(c) Procurement of OT Table, Provisioning of RO
Drinking Water, Hydraulic Bed etc.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
60
Lakhs) (` in Lakhs)
47 Establishment of new ITI for Girls only at Ghatkesar II - Skill Yes Telangana Medchal - 3 Years 150.00 116.45 33.55 No Telangana State CSR00012873
Mandal (Total Project Cost : ` 700 lakhs, 03 Year Development Malkajgiri Education Welfare
Project, 2021-22 : ` 150 Lakhs, 2022-23: 225 Lakhs, District & Infrastructure
2023-24: ` 325 Lakhs). Development
Corporation
(TSEWIDC)
48 Kasaragod District Aquatic Sports Complex & vii - Sports Yes Kerala Kasargod 3 Years 50.00 11.12 38.88 No M/s. District Nirmithi CSR00013897
Swimming Pool (Total Project Cost: ` 150 lakhs, 03 Kendra, Kasaragod
Year Project, 2021-22 : ` 50 Lakhs, 2022-23: 50
Lakhs, 2023-24: ` 50 Lakhs).
49 Dormitories to Kasturba Gandhi Balika Vidyalaya II & III - Yes Telangana Ranga Reddy 2 Years 20.00 14.54 0.00 No District Collector, Not applicable

(KGBV) Schools Education District, Ranga Reddy as Project
/ Women approved
Empowerment before 01-4-
2021
50 She Toilets I - Health Care Yes Telangana Hyderabad 2 Years 14.62 4.23 0.00 No Zonal Commisserion, Not applicable
/ Sanitation GHMC, as Project
Serilingampally Zone. approved
before 01-4-
2021
51 Development of Slum (Ranga Reddy Banda) XI - Others Yes Telangana Ranga Reddy 2 Years 8.51 0.00 0.00 No Zonal Commisioner, Not applicable
(Slum Banda, Kukatpally, GHMC as Project
Development) Jeedimetla, approved
Hyderabad before 01-4-
2021
52 Development of Slum (Yadhi Reddy Banda) XI - Others Yes Telangana Ranga Reddy 2 Years 5.39 0.54 0.00 No Zonal Commisioner, Not applicable
(Slum Banda, Kukatpally, GHMC as Project
Development) Jeedimetla, approved
Hyderabad before 01-4-
2021
53 Additional class Rooms at ZPH Schools II - Education Yes Telangana Ranga Reddy 2 Years 22.22 21.47 0.00 No District Collector, Not applicable
District Ranga Reddy as Project
approved
before 01-4-
2021
54 Facilities at Kasturiba Gandhi Balika Vidyalaya (KGBV), II & III - Yes Telangana Shabad, 3 Years 31.38 40.51 7.31 Yes HAL NA
Shabad Education Ranga Reddy
/ Women District,
Empowerment
55 Sports Amenity Centre at Stadium at Koliyadukam, VII - Sports Yes Kerala Kasaragod, 2 Years 10.00 15.37 0.00 No M/s. Nirmithi Kendra, CSR00013897
Kasaragod Kasaragod
56 Rejuvenation of Pond at Anodi Pallom in Puthige IV - Others Yes Kerala Kasaragod, 2 Years 10.00 4.63 0.00 No District Collector, Not applicable
Grama Panchayath, Kasaragod (conservation Kasaragod as Project
of natural approved
resources) before 01-4-
2021
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Lakhs) (` in Lakhs)
57 Construction of 4 Class Rooms at Zilla Parishad High II - Education Yes Telangana Medchal- 2 Years 6.11 6.11 0.00 No District Collector, Not applicable
School, Kothapet, Medchal District. Malkajgiri Medchal-Malkajgiri as Project
District District approved
before 01-4-
2021
58 Infrastructure Development at Govt. Girls Polytechnic, I, II & III - Yes Uttar Pradesh Lucknow 2 Years 32.08 22.91 0.00 YES HAL NA
Lko - Multipurpose Indoor Sports Center & Vehcile Sanitation,
Parking for Students Promoting
Education,
Woment
Empowerment
59 Construction and provisioning of essential articles/ II - Promoting Yes Uttar Pradesh Barabanki 2 Years 68.64 79.70 0.00 YES HAL NA
items in Kasturba Gandhi School, Barabanki & Education
Structural Consultancy for KGBV
60 Digital Teaching device for primary Schools – Chinhat, II - Promoting Yes Uttar Pradesh Barabanki / 2 Years 0.74 0.92 0.00 YES HAL NA
Chamrahi, Garhi Arazi etc. + UPS Education Lucknow
61 Construction & Up gradation of infrastructure in II - Promoting Yes Uttar Pradesh Lucknow 2 Years 14.76 4.50 0.00 YES HAL NA
Govt. Schools /Colleges. – CHINHAT & LOKHARIYA Education
62 Smart Class Furniture Items II - Promoting Yes Uttar Pradesh Barabanki / 2 Years 11.66 25.63 0.00 YES HAL NA
Education Lucknow
63 Playing Equipment for primary Schools and Drinking II - Promoting Yes Uttar Pradesh Barabanki / 2 Years 13.26 26.86 0.00 YES HAL NA
water purifier cum Cooler Education Lucknow
64 Re-appropriation for carry forward project I - Health Care Yes Uttar Pradesh Barabanki / 2 Years 11.98 11.98 0.00 YES HAL NA
/ Sanitation Lucknow
Total 3976.73 3143.69

61
Enclosure - II
8(c) Details of CSR amount spent against other than ongoing projects for the financial year 2021-22
(1) (2) (3) (4) (5) (6) (7) (8)
62
Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation - Through implementing
No. activities in schedule area spent implementation agency
VII to the Act. (Yes/ State District for the - Direct (Yes/ Name CSR
No) project (` No) registration
in Lakh) number
1 Training of Apprentices over and above the II - Skill Development Yes PAN India Across the 1047.37 YES HAL NA
statutory limits Divisions of HAL
2 Satellite Multifunctional Smart Classroom II - Skill Development Yes Karnataka Bangalore 0.00 No IISc CSR00007370
at HAL -IISc Skill Development Centre,
Bangalore
3 To support the Nizam Institute of Medical I - Healthcare Yes Telangana Hyderabad 800.46 No Tata Trust CSR00003775
Science (Government Hospital) in

Hyderabad with Level – 3, 4 & 5 Critical
Care Capabilities
4 130th Edition of Durand Cup VII - Promote Nationally No West Bengal Kolkata 5.00 YES HAL NA
recognised sports
5 Upgradation of War Memorial Park in V - Protection of No Uttar Pradesh Faizabad 5.70 No Faizabad Cantonement Board CSR00017644
Faizabad Cantt national heritage, art
and culture
6 Financial Assistance to Mathruchaya - II - Promoting Special Yes Karnataka Bangalore 4.37 No Canara Bank Relief & Welfare Society CSR00006960
Canara Bank Relief & Welfare Society Educatin among the (CBR&WS)
(CBR&WS) - differently abled .
7 Financial Contribution to Hiteshi Mahila III - Setting up Facilities Yes Karnataka Bangalore 20.00 No Hiteshi Mahila Maneangala Trust CSR00021095
Maneangala Trust towards Welfare of the for senior citizens
Senior Citizens.
8 Contributin to People for Animals IV - Animal Welfare No Delhi Delhi 5.00 No People for Animal CSR00001927
9 Reimbursement of Expenditure towards II - Education Yes Karnataka Bangalore 17.00 YES HAL NA
Non-HAL BPL (Below Poverty Line) Children
at Vathsalya School for Special Education,
Bangalore.
10 HAL Football academy VII - Sports Yes Karnataka Bangalore 65.47 YES HAL NA
11 Erection of MIG-21 aircraft at National VI - Protection of Yes Karnataka Bangalore 9.33 YES HAL NA
Military Memorial Park, Bangalore National Heritage
12 Providing Health Care facilities to the I - Health Yes Odisha Koraput 35.33 YES HAL NA
inhabitants of adopted villages in HAL
Hospital and organization of health camps
in the surrounding villages.
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Project Item from the list of Local Location of the project Amount Mode of Mode of implementation - Through implementing
No. activities in schedule area spent implementation agency
VII to the Act. (Yes/ State District for the - Direct (Yes/ Name CSR
No) project (` No) registration
in Lakh) number
13 Running of SAI-HAL Sports Training Centre VII - Sports Yes Odisha Koraput 55.48 YES HAL NA
and Training / Encouragement to promote
Rural Sports
14 Imparting Education to poor children in II - Education Yes Odisha Koraput 500.00 YES HAL NA
and around Sunabeda, Koraput in HAL run
Educational Institutions.
15 Oxygen Generation Plant I - Health Yes Maharashtra Nasik 81.22 YES HAL NA
16 Improvement in facilities / infrastructure I - Health Yes Maharashtra Nasik 147.45 Yes HAL NA
Support at Civil Hospital, Nashik
-Construction of New Medicine Warehouse
for storing medicines, compound wall,
provision for Rain water harvesting,
Fire- fighting system, Land scaping and
gardening, Controlled environment for
storing medicine, etc.
17 Improvement in facilities / infrastructure I - Health Yes Maharashtra Nasik 41.23 Yes HAL NA
Support for Primary Health Centers in
following 9 villages of Nasik District;
Saiyyadpimpari, Ojhar, Khadkmalegaon,
Chandori, Pimpalgaon baswant, Palkhed,
Khedgaon, Mohadi, and Talegaon.
18 Provision of High Mast Lamps in the X - Rural Development Yes Maharashtra Nasik 150.60 YES HAL NA
Nearby Villages
19 Oxygen Pipelines to 100 ports in Govt. I - Health Yes Uttar Pradesh Korwa 41.64 No Chief Medical Officer, Amethi CSR00010191
Hospital, Gauriganj Amethi
20 Smart Class Devices/facility in the Govt. II - Education Yes Uttar Pradesh Amehi 13.19 Yes HAL NA
Primary / Upper Primary Schools located in
the nearby villages/areas
21 Procurement and Supply of Masks to Joint I - Health Yes Uttar Pradesh Kanpur 8.88 YES HAL NA
Commissioner Industries, Kanpur. - For
protection against COVID 19 Pandemic in
Kanpur.

22 COVID - 19 Care Hospital (CCC) I - Health Yes Uttar Pradesh Lucknow 1251.51 YES HAL NA
Total 4306.23
63
Enclosure - III
9(b) Details of CSR amount spent in the financial Year for ongoing projects of the preceding financial year(s):
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
64
Sl. Project ID Name of the Project Financial Project Total Amount Amount spent Cumulative Mode of Mode of implementation - Through
No. Year in duration allocated for the on the Project amount spent Implementation implementing agency
which the project in the reporting in the end -Direct (Yes/No) Name CSR
project was (` in Lakhs) financial Year of reporting registration
commenced (` in Lakh) financial Year number
(` in Lakh)
1 Tata Institute of Social Sciences 2020-21 2 Years 49.69 12.43 49.69 YES HAL NA
Baseline Study
2 Infrastructure Development works 2019-20 2 Years 275.00 222.76 262.84 YES HAL NA
in the Adopted Govt. ITI's and TTI,
Bangalore
3 Establishment of Centralized 2020-21 2 Years 250.00 24.85 249.85 No The Akshaya Patra CSR00000286

Kitchen through the Akshaya Patra Foundation
Foundation
4 Establishment of Advance centre for 2020-21 1 Year 200.00 176.20 187.20 No University of Agricultural CSR00016598
Bio energy Research at University of Sciences, Bangalore
Agricultural Sciences, Bangalore
5 Promoting Science, Technology, 2020-21 2 Years 45.00 36.83 36.83 YES HAL NA
Engineering, and Mathematics(STEM)
education through interactive labs in
Government Schools.
6 Bus shelter and toilet block 2020-21 2 Years 24.00 22.25 22.25 YES HAL NA
construction in villages around HAL
LUH project site in Gubbi Taluk
7 Footbal Academy at Bangalore 2020-21 2 Years 52.03 19.19 48.22 YES HAL NA
8 Establishment of Covid Care Center 2020-21 2 Years 78.04 3.44 78.41 YES HAL NA
9 (I) Construction/renovation of school 2020-21 2 Years 25.00 4.96 18.18 No (i) Through Barrackpore
building of Haricharan Lala Adarsha Municipality
Prathamick Vidyalaya, Barrackpore. (ii) Direct
(ii) Barricade for Aquatic Pool
at Umeed Asha Kiran School,
Barrackpore, for differently abled
children.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(` in Lakh)
10 Promotion of Education in 2020-21 2 Years 30.50 2.60 30.46 No Through BDO, Diamound NA
Government School including Harbour
infrastructure facilities, Rain water
conservation, Solar Energy ect. At
Mashat Girls' High School under
Diamond Harbour-I Development
Block, South 24 Parganas, West
Bengal
11 Construction of School Hostel 2020-21 2 Years 29.50 1.19 29.50 No Through BDO, Kulpi NA
Building & Toilet Block at Madan
Mohanpur RCS Vidyamondir under
Kulpi Block, South 24 Parganas, West
Bengal
12 Climate Smart sustainable Organic 2020-21 2 Years 15.00 0.00 11.28 YES Direct NA
Agriculture through Natural Farming
Practices & Solar Pump Irrigation at
Santipur Development Block, North
24 Parganas, West Bengal
13 Food, Nutritional items and other 2019-20 3 Years 21.25 13.52 20.07 No District Social Welfare Officer CSR 00003145
facilities to run the Crèche facility
Centers (05 Units) approved during
2019-20 (2nd Year) (14 Lakhs)
14 Additional class Room in 12 different 2020-21 2 Years 156.45 35.51 145.51 YES HAL NA
Schools.
15 Infrastructure Development at Deaf 2020-21 2 Years 86.26 22.09 82.09 YES HAL NA
and Dumb School, Sunabeda-1
-Multipurpose Dining Hall -Vocational
Training Class Rooms - Toilet Block
-Approach Road to Hostel
16 Pre-Birth waiting room at Public 2020-21 2 Years 28.68 0.83 27.83 YES HAL NA
Health Centre, Rabanaguda

17 Installation of Sanitary Napkin 2020-21 2 Years 0.80 0.00 0.78 YES HAL NA
Incinerators at residential girls
65
schools (10 Nos)
18 Rejuvenation of Jagannath Sagar 2020-21 2 Years 100.00 0.00 0.00 YES HAL NA
Lake at Jeypore
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
which the project in the reporting in the end -Direct (Yes/No)
66
Name CSR
(` in Lakh)
19 Infrastructure Development 2020-21 2 Years 273.77 263.03 272.65 YES HAL NA
at SAI-HAL Sports Centre :
- Provision of Synthetic Foot
Ball Court with Sub-Base
- Chain link Fencing on entrance side
of the Football Ground
20 Construction of Approach Road 2020-21 2 Years 269.12 55.22 170.88 YES HAL NA
with Drain & Culvert in Chakroli

- Rajpalama, Kakigaon villages &
Orphanage (around 2.8 Km in total)
21 Establishment of Model Schools 2020-21 2 Years 247.60 145.00 247.60 YES HAL NA
equipped with Smart classrooms(04
Schools).
22 Provision of Infrastructure Facility 2020-21 2 Years 191.85 7.22 187.22 Yes HAL NA
in Rural area by Construction (s) /
Resurfacing of Roads at Nasik,
Maharashtra.
23 Construction of Sewage treatment 2020-21 2 Years 75.36 0.00 65.00 Yes HAL NA
plant at Nasik, Maharashtra.
24 Waste management Plant i.e. 2020-21 2 Years 66.25 16.25 66.25 YES HAL HAL
conversion of municipal waste ,
food waste etc. to Bio Gas at Nasik,
Maharashtra.
25 Construction / repair of Check 2020-21 2 Years 191.56 67.96 191.56 No Through State Irrigation Not applicable
Dams at Waldevi River at Nasik, Department as Project
Maharashtra. approved
before 01-4-
2021
26 Construction of 3 New ZP School 2020-21 2 Years 447.89 122.87 357.87 YES HAL NA
Buildings at Nasik, Maharashtra.
27 Ambulance to District Administration 2020-21 2 Years 92.50 18.50 92.50 YES HAL NA
/ Govt. Hospitals (05 Nos) at Nasik,
Maharashtra.
28 Construction of Skill Development 2020-21 3 Years 225.00 74.99 149.94 No Rajiv Gandhi Institute of CSR00010866
Centre at RGIPT, Amethi for its Petroleum Technology, Jais,
programme RISE. Amethi
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(` in Lakh)
29 GYAN ARPAN for imparting remedial 2020-21 4Years 200.00 49.97 99.93 No Rajiv Gandhi Institute of CSR00010866
tuitions/coaching for students to Petroleum Technology, Jais,
be undertaken by RGIPT, Amethi. Amethi
- second year funding of 4 years
project (Total Value of Project: Rs.
200.00 lakhs, 04 Year Project, 2020-
21 : ` 50.00 lakhs, 2021-22 : ` 50.00
Lakhs, 2022-23: ` 50.00 Lakhs and
2023-24: ` 50.00 Lakhs)
30 Provision for drinking water facility, 2019-20 3 Years 225.00 72.08 196.00 No Through implementing Not applicable
upgradation of waiting room, toilet agency as Project
block, facilities for easy access for approved
PWDs/ women etc. at Railways before 01-4-
stations: Amethi, Gauriganj, 2021
Musafirkhana
31 Construction of hostels, computer 2020-21 2 Years 141.43 23.26 139.33 No Through implementing Not applicable
lab, etc. at Kasturba Gandhi agency as Project
Residential Girls Schools at various approved
Blocks in Amethi District before 01-4-
2021
32 Construction of toilets in Anganwadis 2020-21 2 Years 168.90 68.29 161.76 No Through implementing Not applicable
in Amethi District agency as Project
approved
before 01-4-
2021
33 Wholesome Development of 2020-21 2 Years 535.65 132.95 527.24 Yes TAD - KANPUR NA
villages nearby to HAL TAD Kanpur
a). Construction of Road (W.O.- PW/
CIV/584, Dt.11.11.2020, Rs.367.41
Lakh)
34 Setting up Waste Management 2020-21 2 Years 104.99 45.94 104.99 Yes HAL NA

System (Installation of Ballastic
Separator, Installation of Trommel
67
(02 Nos), Conveyor & Feeding System
along with installation.)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
which the project in the reporting in the end -Direct (Yes/No)
68
Name CSR
(` in Lakh)
35 Infrastructure Enhancement at 2020-21 2 Years 59.36 25.76 57.23 Yes HAL NA
Community Health Center (CHC),
Sarsaul, Kanpur –
(a) Construction of Road & Shelter
(Ran Basera) with Toilet for Ladies &
Gents, Vehicle Parking Shed.
(b) Allied Electrical Works
(c) Procurement of OT Table,

Provisioning of RO Drinking Water,
Hydraulic Bed etc.
36 Dormitories to Kasturba Gandhi 2019-20 3 Years 200.00 14.54 194.54 No District Collector, Ranga Not applicable
Balika Vidyalaya (KGBV) Schools (5 Reddy as Project
Nos. Dormitory Halls) approved
before 01-4-
2021
37 She Toilets (6 Nos.) at Hyderabad, 2019-20 3 Years 63.00 13.83 61.85 No Zonal Commisserion, GHMC, Not applicable
Telegana. Serilingampally Zone. as Project
approved
before 01-4-
2021
38 Development of Slum (Ranga Reddy 2020-21 2 Years 92.00 1.40 84.89 No Zonal Commisioner, Not applicable
Banda), at Hyderabad, Telegana. Kukatpally, GHMC as Project
approved
before 01-4-
2021
39 Development of Slum (Yadhi Reddy 2020-21 2 Years 60.00 0.54 55.15 No Zonal Commisioner, Not applicable
Banda), at Hyderabad, Telegana. Kukatpally, GHMC as Project
approved
before 01-4-
2021
40 Additional class Rooms at ZPH 2020-21 2 Years 27.25 21.47 27.25 No District Collector, Ranga Not applicable
Schools, Ranga Reddy Banda, Reddy as Project
Telangana approved
before 01-4-
2021
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(` in Lakh)
41 Facilities at Kasturiba Gandhi Balika 2020-21 2 Years 50.13 40.51 50.13 Yes HAL NA
Vidyalaya (KGBV), Shabad
42 Sports Amenity Centre at Stadium at 2020-21 2 Years 55.37 15.37 55.37 No M/s. Nirmithi Kendra, CSR00013897
Koliyadukam, Kasaragod Kasaragod,
43 Rejuvenation of Pond at Anodi 2020-21 2 Years 50.00 4.63 44.63 No District Collector, Kasaragod Not applicable
Pallom in Puthige Grama Panchayath, as Project
Kasaragod approved
before 01-4-
2021
44 Construction of 4 Class Rooms at 2018-19 4 Years 60.00 6.11 60.00 No District Collector, Medchal- Not applicable
Zilla Parishad High School, Kothapet, Malkajgiri District as Project
Medchal District. approved
before 01-4-
2021
45 Infrastructure Development at Govt. 2020-21 2 Years 66.19 22.91 57.02 Yes HAL NA
Girls Polytechnic, Lko - Multipurpose
Indoor Sports Center & Vehcile
Parking for Students
46 Construction and provisioning of 2020-21 2 Years 120.99 79.70 132.05 Yes HAL NA
essential articles /items in Kasturba
Gandhi School, Barabanki &
Structural Consultancy for KGBV
47 Digital Teaching device for primary 2020-21 2 Years 40.63 0.92 40.81 Yes HAL NA
Schools – Chinhat , Chamrahi, Garhi
Arazi etc. + UPS
48 Construction & Up gradation of 2020-21 2 Years 57.96 4.50 47.70 Yes HAL NA
infrastructure in Govt. Schools /
Colleges. – CHINHAT & LOKHARIYA
49 Smart Class Furniture Items 2020-21 2 Years 30.41 25.63 30.41 Yes HAL NA
50 Playing Equipment for primary 2020-21 2 Years 39.85 26.86 39.85 Yes HAL NA
Schools and Drinking water purifier

cum Cooler
51 Re-appropriation for carry forward 2019-20 2 Years 57.43 11.98 57.43 Yes HAL NA
69
project
Summary Report - CSR Project Impact Assessment
Project Name: Development of Dhondi Ganga Ghat at Sarsaul

Sector: Develop Infrastructures in Rural Area
Location: Aima Gram Panchayat, block-Sarsol, District Kanpur Nagar
Start Date: 01/12/2017
Completion Date: 31/03/2019
Impact Assessment Conducted by: G. B. Pant Social Science Institute, Prayagraj, Uttar Pradesh.
Impact Assessment needs to be conducted for the CSR Projects having outlays of one crore rupees or more and which have
been completed not less than one year before undertaking the “Impact Study”.
The external agency has evaluated the Projects/activities w.r.t. the following information:
Sl. Particular Details
no
1. Need for choosing the activity/ In view of the socio-economic-cultural and religious importance of the Ganga, a
project (Conduct of Baseline large number of people come on the bank of the holy river Ganga to perform social-
Survey) cultural and religious rituals. Understanding these social sentiments and importance,
the Ganga Ghat was developed, which benefited a large number of local people and
outsiders like bathers, worshipers and many people who come to the banks of the
holy Ganga to perform their religious rituals.
2. Fulfillment of the objectives for Various types of infrastructures like walkway around Murti Visharjan pond, roads,
the activity/project vehicle parking place, steps at Ghat for bathing, pond for Murti Visarjan, shed/shelter
for seating, park and high mast lamps, floor by chequered tiles etc. were constructed.
A total of ` 145.21 lakhs was spent by HAL on the development of this Ganga Ghat.
3. a. Beneficiaries of the activity/ a. Visitor/tourists, bathers, worshipers, monks/ ascetics, residents and people who
project. come for religious rituals/customs and cremation on daily basis and people come
on specific days or occasions across the year. These people come from both rural
and urban areas.
b. Approximate Numbers b. On average Daily around 915 people and 611800 people on a specific day or
occasion across the year.
4. Budget utilization ` 145.21 Lakh
5. Implementation aspects. All the works were constructed by awarding the tender to reputed contractors.
6. Timely completion of the targets. Most of the work was completed within the stipulated time while few works were
completed by end of March 2019.
7. Impact of the activity/project • Footfalls have increased on festive occasions. Due to pakka Ghat, instances of
on social, economic and drowning have significantly came down.
environmental perspective • The Ghat is convenient for people who come for Karmkand or cremation and
the income of different shopkeepers has increased and they are opening more
number of shops on specific occasions. The local people are bathing & washing
their clothes in a safe hygienic environment and now risk has been taken away.
• The developed Ganga Ghat has provided positive impacts which directly change
socio-economic and religious-cultural life of local as well as outsiders and the
environment of Ghat has become beautiful.
8. Approx. number of beneficiaries. 6,12,715
9. Any other relevant points People expected that HAL-TAD should construct more (3-4) bathing steps of Ghat,
Ghat may be extended up to the Hanuman Temple, construct a park & stone chairs,
construct a changing room for women, toilet etc.

Project Name: Development of Siddhnath Ganga Ghat at Jajmau

Sector: Develop Infrastructures in Urban Area
Location: Ward No. 96, Jajmau, Kanpur City
Impact Assessment Conducted by: G. B. Pant Social Science Institute, Prayagraj, Uttar Pradesh.
Impact Assessment needs to be conducted for the CSR ProJects havmg outlays of one crore rupees or more and which have been
completed not less than one year before undertaking the “Impact Study”.

no
1. Need for choosing the activity/ In view of the socio-economic-cultural and religious importance of the Ganga, a
project (Conduct of Baseline large number of people come on the bank of the holy river Ganga to perform social-
Survey) cultural and religious rituals. Understanding these social sentiments and Importance,
the Ganga Ghat was developed, which benefits a large number of local people and
outsiders like bathers, worshipers and many people who come to the banks of the
holy Ganga to perform their religious rituals.
2. Fulfillment of the objectives for Various types of infrastructures like RCC road, vehicle parking place, steps at Ghat for
the activity/project bathing, pond for Murti Visarjan, park and two high mast lamps etc. were constructed.
A total of Rs.132.22 lakhs was spent by HAL for development of this Ganga Ghat.
3. a) Beneficiaries of the activity/ a. Visitor/tourists, bathers, worshipers, monks/ ascetics, beggars, residents and
project. people who come for religious rituals/customs and cremation on daily basis and
people who come on specific days or occasions across the year. These people
come from both rural and urban areas.
b) Approximate Numbers b. On average Daily around 9100 people and 3050500 people on a specific day or
occasion across the year.
5. Implementation aspects. All the works were constructed by awarding the tender to reputed contractors.
6. Timely completion of the targets. Most of the work was completed within the stipulated time while few works were
completed by end of March 2018.
7. Impact of the activity/project • Footfalls have increased on festive occasions. Due to pakka Ghat, instances of
on social, economic and drowning have significantly came down.
environmental perspectives.
• T he Ghat is convenient for people who come for Karmkand or cremation due to
RCC road & pakka Ghat and income of different shopkeepers has increased and
they are opening more number of shops on specific occasions. The local people
are bathing & washing their clothes in a safe hygienic & environment and now the
risk of flood has been decreased.
• Developed Ganga Ghat has provided positive impacts which directly changed
socio-economic and religious- cultural life of local as well as outsiders and
environment of Ghat has become beautiful
8. Approx. number of beneficiaries. 3,59,600
9. Any other relevant points People expected that HAL should construct a shed/shelter for the protection of sunlight
and rainy water, expansion of Ghat up to Siddhnath temple, construct the changing
room for women and installed statues of gods and goddesses at Ghat.

Project Name: Improvement & Development of Bahrauli School

Sector: II – Promoting Education
Location: Barabanki
Impact Assessment Conducted by: Dr. Omendra Kr. Yadav,
Assistant professor,
Department of Social Work,
University of Lucknow
Impact Assessment needs to be conducted for the CSR Projects having outlays of one crore rupees or more and which have been
Completed not less than one year before undertaking the “Impact Study”.
The external agency has evaluated the Projects / activities w.r.t. the following information:
no
1. Need for choosing the activity/ With the idea of model schools in villages with various facilities/infrastructure for
project (Conduct of Baseline better education of children Divisional CSR committee has conducted baseline survey
Survey) for identification of schools with the guiding principle that – school shall be near
to the adopted villages, must have sufficient land for future expansion & sufficient
number of students and should have sufficient scope of improvement. Based on above
criteria committee had identified Bahrauli school for which was near to Jaikaranpurwa
village. Students of around 16 villages were enrolled in this school, both primary and
middle school was located at same place, school was having sufficient land for future
extension and have sufficient scope for improvement/development.
2. Fulfillment of the objectives for • Improvement in the quality of education.
the activity/project
• Infrastructure development of Govt. Schools lacking basic infrastructure facilities.
• Promoting equal educational opportunity among child in the community.
• Promoting Cleanliness & Health
• To upgrade the education level with latest technology by providing enabling
resources.
• Reduced the student turnover rates.
• Boosting the Confidence, Critical and Creative thinking level of child.
• hanging the community mindset that private schools are better than government
C
schools.
3. a. Beneficiaries (*) of the a. Rural
activity/project.
b. Approximate Numbers b. Around 500 Students
5. Implementation aspects. Direct Implementation through Division
6. Timely completion of the targets. Project completed as per plan.

no
7. Impact of the activity / project Schools provide access to an education for every child in the community and they
on social, economic and ensure that every student in the neighborhood has the same educational opportunities,
environment perspective. regardless of their current personal or financial situation. They have the resources to
offer more academic opportunities like technology and the arts enabling students
to find choices at their ability level as well. In addition to academic opportunities,
these government schools also offer a variety of extracurricular activities, ranging
from athletics to music and drawing to theatre to keep students learning and
excelling in the areas in which they are more interested. The enabling resources
provided by HAL like desks, chairs, tables, green boards and audio-visual facilities
set a comforting environment for students out there and motivating them to attend
classes regularly. Girls and boys including the most marginalized are benefited with
the quality education focusing on foundational learnings. The facilities provided by
HAL improved the learning environment for children in spite of their socio-economic
background. Thus, ensuring them the quality education with the facilities that are
generally available to the private schools. Installation of hand pumps in the school
ensures clean drinking water for children and staff, clean and hygienic washrooms.
Construction of boundary walls prevents stray animals from entering and from
outsiders to dump garbage in the school campus. Better infrastructure leads to a
better environment which leads to more interest in students attending classes on a
regular basis. Thus, improved teaching and better interest of teachers in giving quality
education to students. Improvement in results of students has been noticed in the
last few years. The presence of green boards and audio-visual facilities also help
teachers in explaining the concepts and approaches better to students. Good number
of teacher staff is also noticed there. Positive classroom environment due to presence
of benches, desk, proper tiling and playing equipment for children. Counseling of
students in case of any grievance and availability of first aid for them set children
free to come with a positive mindset to attend classes daily. More safety for students
and staff out there set a positive environment for them. Organizing extracurricular
activities for students helps in boosting the confidence level and presence of playing
ground and equipment also contributes a positive factor in improving their interest
in both academic as well as in improved psychological approach towards others. A
mindset that private schools are far better than government schools is also reducing
to some extent among students and staff out there. There is a commitment to ensure
that all children should have access to inclusive and equitable quality education. Thus,
there has been a decrease in the number of dropouts in schools, increased enrolment
and improved learning environment for the children out there. Improved attendance
and systematic completion of academic cycles observed in these schools. Critical and
Creative thinking, Communication and Participation of students in Extracurricular
Activities in these schools contribute to a positive change in the personality of children,
resulting in not only improving the academic performance of a child but also preparing
a child for future endeavors.
8. Any other relevant points
(*)(Rural / Urban/ School Children/ Sr. Citizens/ etc.)

Project Name: Installation of Solar Street lights

Sector: IV – Environmental Sustainability
Location: Lucknow & Barabanki
no
1. Need for choosing the activity/ Electricity most important blessings that science has given to mankind and it plays very
project (Conduct of Baseline significant role in our lives. However, while conducting the base line survey in villages
Survey) for identification for projects to be under taken by Division it was found that there are
many villages which are deprived of electricity and spending their lives in darkness.
Accessories Division Lucknow acknowledged this fact and decided to lighten these
villages with the use of Solar Energy which is a sustainable and also a renewable
source of energy. Around 51 villages were identified in which project was undertaken.
2. Fulfillment of the objectives for • Improvement in the quality of life of villagers.
the activity/project • Helping villagers to perform their work & business during night hours.
• elping students by enabling them to study in proper light during night hours and
H
especially during the time of examinations.
• No operating cost for villagers.
• Enhanced security in the villages for women & children.
• E asy commutation of villagers specially women & children within village during
dusk.
• Helping in Ensuring Environmental Sustainability.
• The system provides electricity quietly, cleanly and requires less maintenance.
3. a. Beneficiaries (*) of the a. Rural
activity/project.
b. Approximate Numbers b. Around 2.5 lakhs villagers
5. Implementation aspects. Direct Implementation through division

no
7. Impact of the activity / project Social Impact - It was found that, after the installation of -these solar street lights, the
on social, economic and social interactions within the community increased significantly, due to the presence of
environment perspective. these lights, people were able to gather and socialize with each other, even during the
evening and the night time. This led to greater social harmony and social polyphony.
Strong network of community interactions foster both emotional and physical health,
hence an increased level of interactions within the community is a sign of good quality
of life.
Economic Impact - A positive impact was seen in the economic sphere of the life
of the people. With the installation of the street lights, increased business hours and
hassle free mobility and transportation of the goods and other materials from one
place to another, turned out to be profitable for the villagers.
Environmental Impact - Previously, students used to study indoors using kerosene
based lightning sources. But now they study outside under street lights as they provide
better lightning. Also as a replacement for kerosene-based lighting sources, electric
lighting substantially reduces indoor air pollution and carbon emissions. The benefits
of replacing kerosene with electricity extend beyond a higher-quality lighting source.
Switching to electric lighting also means eliminating the indoor air pollution (IAP)
caused by the smoke emitted by kerosene lamps, which in India accounts for about
half a million premature deaths annually.

Project Name: Renovation and Construction at Schools

Sector: II – Promoting Education
Location: Barabanki

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1. Need for choosing the activity/project With the idea of model schools in villages with various facilities/
(Conduct of Baseline Survey) infrastructure for better education of children Divisional CSR committee
has conducted baseline survey for identification of schools with the
guiding principle that – school shall be near to the adopted villages, must
have sufficient land for future expansion & sufficient number of students
and should have sufficient scope of improvement. Based on above
criteria committee had identified Schools at Ramnagar, Mir nagar, Kursi &
Bahrauli which were near to villages adopted by division for conducting
CSR activities. All the four schools caters around 1050 students. School
was having sufficient land for future extension and have sufficient scope
for improvement/development.
2. Fulfillment of the objectives for the activity/ • Improvement in the quality of education.
project
• Infrastructure development of Govt. Schools lacking basic
infrastructure facilities.
• P romoting equal educational opportunity among child in the

community.
• Promoting Cleanliness & Health
• T o upgrade the education level with latest technology by providing

enabling resources.
• Reduced the student turnover rates.
• Boosting the Confidence, Critical and Creative thinking level of child.
• Changing the community mindset that private schools are better

than government schools.
3. a. Beneficiaries (*) of the activity/project. a. Rural
b. Approximate Numbers b. Around 1050 Students
5. Implementation aspects. Direct Implementation through Division

no
7. Impact of the activity / project on social, Schools provide access to an education for every child in the community
economic and environment perspective. and they ensure that every student in the neighborhood has the same
educational opportunities, regardless of their current personal or financial
situation. They have the resources to offer more academic opportunities
like technology and the arts enabling students to find choices at their
ability level as well. In addition to academic opportunities, these
government schools also offer a variety of extracurricular activities,
ranging from athletics to music and drawing to theatre to keep students
learning and excelling in the areas in which they are more interested.
The enabling resources provided by HAL like desks, chairs, tables, green
boards and audio-visual facilities set a comforting environment for
students out there and motivating them to attend classes regularly. Girls
and boys including the most marginalized are benefited with the quality
education focusing on foundational learnings. The facilities provided
by HAL improved the learning environment for children in spite of their
socio-economic background. Thus, ensuring them the quality education
with the facilities that are generally available to the private schools.
Installation of hand pumps in the school ensures clean drinking water
for children and staff, clean and hygienic washrooms. Construction of
boundary walls prevents stray animals from entering and from outsiders
to dump garbage in the school campus. Better infrastructure leads to a
better environment which leads to more interest in students attending
classes on a regular basis. Thus, improved teaching and better interest
of teachers in giving quality education to students. Improvement in
results of students has been noticed in the last few years. The presence
of green boards and audio-visual facilities also help teachers in explaining
the concepts and approaches better to students. Good number of
teacher staff is also noticed there. Positive classroom environment due
to presence of benches, desk, proper tiling and playing equipment for
children. Counseling of students in case of any grievance and availability
of first aid for them set children free to come with a positive mindset
to attend classes daily. More safety for students and staff out there set
a positive environment for them. Organizing extracurricular activities for
students helps in boosting the confidence level and presence of playing
ground and equipment also contributes a positive factor in improving
their interest in both academic as well as in improved psychological
approach towards others. A mindset that private schools are far better
than government schools is also reducing to some extent among students
and staff out there. There is a commitment to ensure that all children
should have access to inclusive and equitable quality education. Thus,
there has been a decrease in the number of dropouts in schools, increased
enrolment and improved learning environment for the children out there.
Improved attendance and systematic completion of academic cycles
observed in these schools. Critical and Creative thinking, Communication
and Participation of students in Extracurricular Activities in these schools
contribute to a positive change in the personality of children, resulting
in not only improving the academic performance of a child but also
preparing a child for future endeavors.

Project Name: Center of Excellence (COE)

Sector: II – Skill Development
Location: Bangalore, Karnataka
Impact Assessment Conducted by: Machine Tool Technology Department,
S. J. Government Polytechnic, K. R. Circle, Bangalore – 560001.

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1. Need for choosing the activity/project As per the extracts from the Minutes of the Meeting of 13th CSR &Skill
Development Committee, HAL Corporate Office held on 05/04/16, Center
of Excellence for Advance Machining has been established in the Technical
Training Institute, Bangalore under Corporate Social Responsibility- CSR.
Additionally one new trade “Operator Advance Machine Tool- OAMT
“was also recommended by the same committee also ,under CSR with
the intake of 30 students (Below Poverty Line – BPL) of the rural areas
of Karnataka State to empower them with requisite skills & make them
employable COE was proposed with the outsourcing model for faculty.
One officer at Grade VI level as COE head, one officer at grade II/III level
as in charge of the trade & one workman at Scale -8 level as instructor for
workshop / Lab to be transferred from Divisions to the COE.
2. Fulfillment of the objectives for the activity/ ` 310 Lakh was also sanctioned by the HAL, CO under Corporate Social
project Responsibility – CSR (HAL CO letter no. HAL/HR/22(1)-40/CO/2016-17
dated 06th. April, 2016) to develop the infrastructure for approved trade
OAMT. Accordingly, 03 nos. CNC Lathe (value ` 56,09,028.00) & 3 nos.
CNC VMC (Vertical Milling Center - 3 Axis) + 2nos. of Digital Tool Pre-
setters (value ` 90,57,445.00 ) were procured to meet the requirement of
the syllabus of the said trade under CSR.
Also 10th Standard students were engaged for the said trade OAMT
but later registered for the designated trade “CNC programmer cum
operator“ and accordingly approval from the HAL corporate office was
taken on 23/02/2017
3. Beneficiaries of the activity/project. a. Students with 10th. std. pass, who are below poverty line (BPL)
category & belong to the remote and rural areas of Karnataka state
and are deprived from skilled learning / training & do not have access
to employment opportunities
Approximate Numbers b. 19 nos. of students who got passed through the exams for the trade
“CNC programmer cum operator”
4. Budget utilization ` 1,46,66,473.00

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5. Implementation aspects. Completion of procurement action, successful installation, commissioning,
operation & testing of the 6 nos. of CNC machines & 2 nos. of Digital Tool
Pre-setter was carried out with the use of In house resources.
Also, 28 nos of students were engaged for the trade “CNC programmer
cum operator” for the two years duration course from Oct. 2016 to Oct.
2018. 20 were eligible for the exams & 19 students got passed out. 12
students are currently employed in various industries & remaining pursuing
higher studies
6. Timely completion of the targets. Yes. 6 nos. of CNC Machines & 2 nos. of Digital Tool Pre-setter were
procured, installed, commissioned & made operational. Approved trade
“CNC programmer cum operator“ was engaged within the financial
year 2016-17 as per the guidelines from the HAL CO & extracts from the
Minutes of the Meeting of 13th CSR &Skill Development Committee.
7. Impact of the activity/project on social, 1. TTI machine shop got a facelift with the commissioning of these 6
economic and environment perspective. nos. of CNC machines (3 nos. CNC Lathe & 3 nos. CNC VMC) and
two nos. Digital Pre-setters.
2. 19 out of 28 students got through All India Trade Test (AITT), paid
stipend, Welfare items such as uniform , bag shoes etc., awarded
National Apprentice Certificate (NAC) pursued higher studies and
further got employment in various industries across Karnataka State.
8. Approx. number of Beneficiary. 19 nos. of Students from the trade “CNC programmer cum operator“
engaged in the year 2016-17 & 12 got employed in various industries
9. Any other relevant points Approved outsourcing model of the faculty was replaced by the in house
resources which resulted in large amount of saving. Faculty was arranged
within HAL/ TTI only, resulted saving from the stipend.

Project Name: Center of Excellence (COE)

Sector: II – Skill Development
Location: Machine Shop ( Technical Training Institute) , Foundry & Forge Division,
Bangalore
Impact Assessment Conducted by: Machine Tool technology Department,
S. J. Government Polytechnic, K. R. Circle, Bangalore – 560001.

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1. Need for choosing the activity/project As per the extracts from the Minutes of the Meeting of 13th CSR &Skill
(Conduct of Baseline Survey) Development Committee held on 05/04/16, HAL Corporate Office has
approved Center of Excellence for Advance Machining, to be established
in the Technical Training Institute, Bangalore under Corporate Social
Responsibility - CSR, and one new trade “Operator Advance Machine
Tool- OAMT“ also under CSR for the students (Below Poverty Line –BPL)
of the rural areas of Karnataka State to empower them with requisite skills
& make them employable.
COE was proposed with the outsourcing model for faculty. One officer at
Grade VI level as COE head, one officer at grade II/III level as in charge of
the trade & one workman at Scale -8 level as instructor for workshop / Lab
to be transferred from Divisions to the COE.
2. Fulfillment of the objectives for the activity/ ` 200.00 Lakhs was also sanctioned for 2017-18 under CSR for further
project expanding the facility at Center of Excellence at M/c Shop, TTI Bangalore.
` 195.62 Lakhs from the said amount of ` 200.00 Lakhs was carry forward
against COE to the year 2018-19. Centralized air conditioned enclosure 80
ft.X 64 ft. for housing the 6 CNC machines and two Digital Tool Pre setters
procured in the year 2016-17 was proposed to be constructed by Facility
Management Division, HAL , Bangalore. In line with the syllabus of the
said trade “CNC programmer cum operator“ 4 nos of Fanuc Simulators,
DNC (Direct Numerical Control ) work station with network connectivity
for program transfer and air-conditioned classroom with seating capacity
of 30 students was also established in the year 2018-19 for the total value
of ` 1,29,10,795.00.
3. a. Beneficiaries of the activity/project. a. 29 nos. of students with 10th std pass from Below Poverty Line (BPL)
& rural areas of Karnataka were engaged for the trade under CSR
“Operator Advance M/c Tool” for two year duration in year 2018-
19. 22 were eligible for the exams & 7 got passed. 5 are currently
employed & remaining preparing for AITT (All India Trade Test), as
on date of preparation of the report. Also, 28 students for the CNC
trade from October 2018 to January 2020 were engaged during the
Year 2018-19, 20 were eligible for exams & 15 got passed. 3 out of
15 are employed and remaining are pursuing higher studies.

no
b. Approximate Numbers b. 07 nos. of students in the CSR full term two years trade “OAMT-
Operator Advance M/c Tool“ & 15 students for the CNC trade, i.e.,
total 22 students passed out.
4. Budget utilization ` 1,29,10,795.00
5. Implementation aspects. Electrical, Air conditioning and Civil work for the COE enclosure - 80ft.x
64 ft., with DNC Lab, CNC simulator Lab and classroom with seating
capacity for 30 students of value `1,07,51,795.00 was completed by
Facility Management Division (FMD) in the year 2018-19 , a sister division
of HAL Foundry & Forge Division in coordination with Technical Training
Institute, Bangalore. DNC work station (` 5,15,000.00) and 4 nos. of
FANUC Simulators (` 16,44,000.00). Installation carried out by Vendor in
co-ordination with TTI.
6. Timely completion of the targets. The centralized air conditioned AL-Glass partition enclosure (80 ft. 64 ft.)
got completed in the year 2018-19 and completion certificates for Civil,
Electrical and Air Conditioning Work were obtained from FMD for the said
Financial Year. Hence total cost of ` 1,07,51,795.00 for the said enclosure
has been considered to happen in 2018-19. Also, to meet the practical
requirements of the syllabus of the said trade, 4 nos. of Fanuc Simulators
& DNC network was also established in the year 2018-19 bringing the
total utilized amount to ` 1,29,10,795.00
7. Impact of the activity/project on social, 1. State-of-the art infrastructure in terms of Centralized Air Conditioned
economic and environment perspective. COE enclosure, Class Rooms, DNC lab and CNC Simulator Lab Facility
was made available for 29 students of OAMT trade under CSR & 28
students of the CNC trade.
2. Conducive, comfortable and ease of sitting / study surroundings for

the students with audio visual facility.
3. Uniform, shoes and Bag were provided to the students.

8. Approx. number of Beneficiary. 5 nos. from OAMT & 3 nos. from CNC are currently employed in various
industries across Karnataka State. Remaining are pursuing higher studies
or preparing for AITT (All India Trade Test), as on date of preparation of
the report.
9. Any other relevant points Current employment status indicates that Trade “CNC programmer cum
operator was found to be largely employable and syllabus matches to the
established infrastructure“ so TTI continue to engage the said trade after
the engagement of one batch of the trade “Operator Advance M/c Tools”
in line with the directive from HAL , CO.

Annexure IV to Board’s Report
FORM NO. MR - 3
SECRETARIAL AUDIT REPORT
(FOR THE FINANCIAL YEAR ENDED 31st March 2022)
[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
Bangalore - 560001
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to corporate
governance practices by Hindustan Aeronautics Limited (Hereinafter called the “Company”) for the Financial Year 2021-22.
Secretarial Audit was conducted in a manner that provided us reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Based on our verification of the 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 31st March 2022 complied with the statutory provisions listed hereunder and also that the Company
has proper Board-processes and compliance-mechanism in place to the extent and in the manner, 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 31st March, 2022 according to the applicable laws and more specifically the following:
(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, wherever applicable.
(v) 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;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
d. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999; (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 (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client;

g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not Applicable during the
audit period)
h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not Applicable during the
audit period)
i. Guidelines issued by Department of Public Enterprises;
j. Guidelines issued by Ministry of Defense;
k. Guidelines issued by Department of Investment and Public Asset Management (DIPAM);
l. Order / Regulations issued by the Govt. of India from time to time;
We 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.
During the period under review the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines,
Standards etc. as mentioned above subject to the following observations during examination of the relevant documents and
records in pursuance thereof on test-check basis:
The Company has received exemption from the Department of Investment and Public Asset Management, Ministry of Finance
from compliance of DIPAM Guidelines pertaining to buyback of shares and issue of bonus shares during the financial year 2021-
22. The Company awaits response from Ministry for splitting of shares and disinvestment of balance 0.15 % shares.
During the year under review, the Company was required to spend an amount of ` 81 Crores towards CSR activities, However, the
Company has spent an amount of ` 78.27 Crore. The Company has transferred ` 2.73 Crore to “Unspent CSR Account 2021-22”
towards unspent CSR amount of ongoing projects.
During the year under review Bombay Stock Exchange Ltd (BSE) and National Stock exchange (NSE) have imposed fine of ` 28.85
Lakhs each, on the Company for non-compliances under SEBI (LODR) Regulations, 2015.
We further report that:
1. As on 31st March 2022, the Company was required to appoint 6 independent Directors and 1 Functional Director to comply
with the requirement of proper constitution of Board pursuant to the direction of Ministry of Defence vide their letter dated
5th December 2014 read with Regulation 17 of SEBI (LODR) Regulations, 2015.
2. Due to the vacancy created in the positions of independent directors, as on 31st March, 2022, the Company was not able to
comply with the requirements of Audit Committee and Nomination and Remuneration Committee as per Companies Act,
2013 and SEBI (LODR) Regulations, 2015.
3. The Company has reconstituted the Stakeholders Relationship Committee, Risk Management Committee and Corporate
Social Responsibility and Sustainable Development (CSR & SD) Committee on 10th February 2022 after appointment of Dr.
Divya Gupta as independent director.
We further observed that:
i. due to the vacancies created in the positions of Board on completion of term of independent directors, there was no
independent director present at the Board Meetings held between 24th July 2021 and 27th December 2021.
ii. In the absence of duly constituted/reconstituted committees as aforesaid, the matters to be approved by the said committees
including related party transactions and CSR were directly approved by the Board.
On the above matters, it was explained by the Company that, since appointment of Independent Directors in the Government
Companies is being made by concerned Administrative Department of the Government of India, the Company has no control over
such appointments. Multiple requests were made to the Ministry of Defence (MoD) for filling the vacant posts of Independent
Directors in the Company, within the stipulated time, referring penal provisions both under the Companies Act, 2013 and SEBI

Regulations. After continuous follow ups on the matter with MoD and DPE, one Independent Director was appointed in the
Company by the Government on 28th December, 2021.
It was further explained that, since the appointment of Independent Directors in the Government Companies has to be made
by the concerned Administrative Department of the Government of India, application for waiver of fines on such matter where
Company has no control over such appointments, has already been submitted to NSE and/or BSE on 17th February, 2021, 24th May,
2021, 23rd August, 2021, 23rd November, 2021 & 22nd February, 2022 respectively under Sl. No. 3(a) of the Policy of exemption of
fines issued by SEBI. However, in response, NSE vide email dated 8th December, 2021 and 4th May, 2022, advised the Company to
file such applications only after resuming the compliances in the Company.
It was further explained by the Company that, later, on appointment of Shri Deepak Abasaheb Shinde as Independent Director
by the Government on 28th April, 2022, Company has regularized the composition of Audit Committee and Nomination &
Remuneration Committee w.e.f. 4th May, 2022. However, composition of the Board with respect to independent directors is yet to
be complied by the Company due to non-filling of five independent director posts in the Company by the Government.
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 before
the meeting and for meaningful participation at the meeting.
Majority decision is carried unanimously and the 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.
Keeping in view of the market capitalization, nature of industry in which the Company operates, we are of the opinion that proper
constitution of Board and committees at the earliest will enhance the interest of Company and stakeholders.
For DPSP and Associates

Company Secretaries
P. Dakshayani
Partner
Date: 10/05/2022 C.P. No. 8411
Place: Bengalore UDIN: F008993D000298150
*This report is to be read with our letter with given date which is annexed as ‘Annexure A’ and forms an integral part of this
report.

‘ANNEXURE A’
To,
The Members
Bangalore – 560001
Our report with given date is to be read along with this letter.
1. Maintenance of secretarial records is the responsibility of the management of HINDUSTAN AERONAUTICS LIMITED (“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.
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 DPSP and Associates

Company Secretaries
P. Dakshayani
Partner
Date: 10/05/2022 C.P. No. 8411
Place: Bengalore UDIN: F008993D000298150

Management Discussion & Analysis Report
1. INDUSTRY 1.2.5 In the recent years significant impetus has been given by the
After initial shocks of COVID-19 and global lockdowns in Government to develop and strengthen the A&D Industry in
2020 and 2021, the Aerospace & Defence (A &D) industry the country. The Defence Acquisition Procedures (DAP-2020)
is recovering in both Commercial and Defence sectors, which promotes higher indigenous content in the Defence
however the recovery is expected to be uneven across the procurements has been released. Positive lists of Defence
two sectors. The Defense sector is expected to grow in equipment to be procured within the country has been released.
2022-23, due to rising global geopolitical conflicts many Significant thrust has been given to the indigenisation of Defence
countries may significantly increase Defense budgets equipment under “Aatmnirbhar Bharat” movement to reduce
and remain committed to strengthening their military Defence import bill and make the country self-reliant in Defence.
capabilities.
2. ORGANISATION STRUCTURE
1.1 Global Scenario 2.1 Presently, HAL has 20 Production Divisions and 10 R&D
1.1.1 The A&D Industry is a vast industry which encompasses Centres co-located with the Production Divisions. These
Commercial and General Aviation, Military Aircraft, Space Divisions / R&D Centres are located at nine geographic
Systems, Ground Defence and Shipbuilding. As per an locations in seven states across the country. These Divisions
industry report the global Aerospace & Defence market are organized into five complexes with current & future
is expected to grow from $700 billion in 2021 to $755 operations given below.
billion in 2022 at a growth rate of 7.8%. The growth is
mainly driven by the companies due to recovery of their • Bangalore Complex (BC): Production and ROH of
operations from the COVID-19 impact, and Defence Fixed-wing Aircraft and Engines (Indian and Western
budget allocation in various countries. As per Stockholm origin), Spacecraft Structures, Castings, Forgings &
International Peace Research Institute (SIPRI) report, in Rolled Rings.
2021 world military expenditure crossed two trillion US
• MiG Complex (MC): Production and ROH of Fixed-
dollar reaching $2,113 billion, which is 0.7% higher than
wing Aircraft and Engines (mainly Russian origin),
2020. Total world military spending accounted for 2.2%
Civil MRO and UAV Projects.
of global Gross Domestic Product (GDP) in 2021.
1.1.2 As per estimates the global A&D market is expected to • Helicopter Complex (HC): Production and ROH of
reach $1047 billion in 2026. Presently, the key technology Helicopters (Indian and Western origin).
drivers in the A&D industry are Electric Propulsion, additive
manufacturing and digitization. • Accessories Complex (AC): Production and ROH
of Transport Aircraft. Production and ROH of
1.2 The Indian Scenario
Accessories and Avionics for Fixed-wing and Rotary-
1.2.1 The Indian A&D Industry is dominated by Defence sector. wing Platforms (Indian, Russian and Western origin).
Therefore Defence projects, policies and funding by GoI play Depot Level Maintenance of UAVs.
crucial role in development of A&D industry in India.
• Design Complex (DC): R&D of Fixed-wing and Rotary-
1.2.2 As per SIPRI report (Trends in World Military Expenditure –
wing Aircraft, Unmanned Aerial Vehicles (UAV), Aero-
2021), India is at 3rd position in world in terms of military
engines, Avionics and Accessories.
spending with $ 76.6 billion in 2021. This was 0.9% higher
than in 2020 and it is 2.7% spending as a share of Indian BC, MC, HC and AC are headed by Chief Executive Officers
GDP. (CEOs). Head of Divisions under each complex reports to the
1.2.3 In the Union Budget 2022-23, `5,25,166 Crore has been respective CEOs, whereas Head of R&D Centres under Design
allocated for Defence. This includes expenditure on salaries Complex report to Director (Engineering and R&D). All the
of armed forces and civilians, pensions, modernisation of functional Directors and CEOs report to Chairman & Managing
armed forces, production establishments, maintenance, Director (CMD).
and research and development organisations. This is 9.82%
higher than `4,78,196 Crore (BE for FY 2021-22). 3. SWOT ANALYSIS
1.2.4
Under “Aircraft and Aero-engine” category, Indian Army 3.1 SWOT Analysis is the tool to assess internal strengths
has received an allocation of `2,070 Crore, Indian Navy has and weaknesses of the organisation as well as to
received an allocation of `5,926 Crore and Indian Air Force identify potential opportunities and threats in its external
has received an allocation of `18,966 Crore, summing to environment. The SWOT analysis of the company is as
a total allocation of `26,962 Crore for Aircraft and Aero- follows:
engines.

Strength • Collaborations of Global OEMs with private
companies in India and capability building by them.
• The capability to cater a large spectrum of aerospace
business which includes R&D, Production and MRO • The Strategic Partnership (SP) Model may deprive
of the Fixed-wing Aircraft, Rotary-wing Aircraft, HAL of some high value Defence orders.
Aero-engines, LRUs and airborne systems. • Competition from foreign companies due to increase
of FDI limit from 49% to 74% through the automated
• Expertise in aircraft upgrade for the Defence route.
customers which includes major changes like re-
engining, avionics upgrade, and weapon system • COVID-19 specific risks: In case of surge in COVID,
integration. economic depression, downsizing of Defence
budget, Supply chain disruptions, failing of vendors,
• Expertise in absorption of Transfer of Technology legal complications etc.
(ToT). Successfully completed ToT and production of
Jaguar, Hawk, MiG-21, MiG-27, Su-30MKI,Cheetah 4. OUR STRATEGIES
and Chetak helicopter. 4.1 We intend to pursue the following principal strategies to
exploit our strengths and grow our business:
• Expertise in Design & Development of utility and
combat helicopters. A wide range of helicopter • Diversify into civil market for both manufacturing and
platforms like ALH, LCH, Rudra and LUH have been MRO opportunities.
developed. Further, design efforts has been initiated
with internal funding for 13 tonnes class of Helicopter • Enhance indigenisation to ensure higher indigenous
i.e. Indian Multi Role Helicopter (IMRH) and Deck content in our products.
Based Multi Role Helicopter (DBMRH).
• Expand our operations globally through collaborations
• Trusted partner of Indian Defence Forces for providing with global partners.
support to aging fleets. • Exploring global market and export opportunities.
Weakness • Enhance customer satisfaction and improved quality
of products and services.
• Dependency on foreign OEMs for critical materials
and LRUs. • Strategic product development to bring out right
products for our customers at right time.
• Little presence outside India in export market.
• Focus on increasing operational efficiencies by
• The company’s cash flow mainly depends on the adapting latest technologies.
allocation of the budget by the MoD.
5. COVID-19 IMPACT ON THE INDUSTRY AND RECOVERY
Opportunity MEASURES
5.1 There had been difficulties during the second and third
• Multiple policy reforms in the Country to promote
wave of COVID. However, with adequate preparatory
Defence manufacturing.
measures and strict safety protocols in place, company
• Focus of Government on Atmanirbhar Bharat to was well equipped to handle the situation and could
reduce Defence import bill. continue activities as usual.
• Gradually developing civil MRO opportunities in India. 6. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

6.1 The Ministry of Corporate Affairs vide Notification No
• Development of new potential market in India such 1/2/2014-CL-V dated 23rd February, 2018 has exempted
as for regional jets, UAVs etc. Government companies engaged in Defence Production
to the extent of application of Ind AS 108 on “Operating
• Growth potential through alliance and partnership Segment”. Disclosure in this regard has been made at
for global markets. Clause No. 37 of Note No. 49 to the Accounts.
Threat 7. OUTLOOK
• Change in preference of Defence customers by 7.1 In the year 2022-23, defense budgets and revenues for
moving away from single source to multiple sources. defense contractors are expected to remain largely stable

or increase, as military programs continue to be critical Industry will significantly help in making India a preferred
to national Defense, especially considering geopolitical manufacturing destination.
tensions. Global defense spending is expected to grow
about 2.5% in 2022, as major world powers continue 8. RISKS AND CONCERNS
to strengthen their militaries in response to geopolitical The major risks and concerns of the Company are:
tensions.
• Dependence on foreign OEMs for supply of critical
7.2 Both military and commercial aerospace sectors have components and Spares required for the manufacture
good growth potentials in India. In 2022-23, the total and overhaul of Aircraft/ Helicopters.
allocation (including pensions) of the three forces is `
4,92,957 Crore which is 94% of the total defence budget. • Dependence on limited customers for new contracts,
Out of this, allocation for Army accounts for 58% of the quantum of allocation of Defence budget and timely
defence budget followed by the Air Force at 19% and allocation of budget.
Navy at 16%. This year 25% of Defence R&D budget is
earmarked for private industry, startups and academia. • Competition from domestic and foreign players.
7.3 India has plans to develop civil aviation in the country • Risk of natural disasters and pandemic.
through regional connectivity for its tier-2 cities.
• COVID-19 specific risks: In case of surge in COVID,
Government has launched UDAN Scheme for the purpose.
economic depression, downsizing of Defence
HAL is contributing to the UDAN initiative through its Do-
228 civil which is the first made in India civil aircraft used budget, Supply chain disruptions, failing of vendors,
for commercial flight. Type Certification of Hindustan 228, legal complications etc
a variant of Do-228 has been received from DGCA on 19th
9. MEASURES TO TACKLE CHALLENGES
May, 2022.
9.1 The measures taken by the Company to address the
7.4 The possible opportunities available for the Company in challenges, concerns and risks are as follows:
the future are:
Mitigating Strategic Challenges
• Thrust of the Government towards domestic products
for developing a self-reliant industry will bring greater • The Company is focusing on diversification and
opportunities for new orders. enhance its revenues from commercial / civil sector to
maintain the growth and mitigate the risks of skewed
• The stability of military sector during the time of Sales Portfolio towards Defence.
crisis will entice commercial players to diversify in
to military sector as risk mitigation strategy. This • The Company is focusing on forming strategic
will bring opportunities for HAL to diversify into alliance with global aerospace companies to expand
commercial sector by forming strategic alliance with its exports market and revenue from exports.
such companies.
Mitigating R&D Challenges
7.5 The Aerospace Industry has always been capital-intensive
with high technological requirements and long gestation • The Company is putting focus on market oriented
periods. In addition, the industry has challenges in supply products and technology developments to
chain, and has to contend with costly raw material, complement with company goals to expand in
unavailability of skilled labour, technological requirements commercial and export market.
and multiple suppliers. The Government is supporting
• The Company has always focused on participation of
the industry through the creation of Defence Industry
academia with Industry. Over the years, the Company
Corridors and Special Economic Zones (SEZ). This will help
has established chairs at IITs and IISc to benefit from
micro, small and medium enterprises (MSMEs) that supply
technological developments and their application in
components and sub-assemblies to large manufacturers.
our R&D programs.
The long gestation period and capital intensity often
creates entry barriers for MSMEs in this sector. SEZ would • The company is focusing on enhanced participation
make it easy for companies to have access to talent and of Startup, SME/ MSME Companies in R&D and
create synergies on logistics. technology development.
7.6 Since the industry needs a skilled talent pool for this highly Mitigating Marketing Challenges
specialized industry, the initiation of the Government
to create skill centers, educational institutions and • The Company is putting enhanced impetus on
universities that are tailor-made for the Aerospace strengthening and leveraging Marketing and Business

Development to complement business expansion the operations, if observed, is followed up with necessary
goals. remedial measures and suitable disclosures have been
made in the Notes to Accounts.
Mitigating Operational Challenges
11.2 The Statutory Auditors are also required to issue the
• The Company is focusing on enhanced digitalization Independent Auditor’s Report vide Section 143(3)(i) of the
and IT enabled systems for speedy communication Companies Act. The Report issued thereupon has been
and decision making. attached along with the standalone and consolidated
financial statements respectively.
• The Company is focusing on use of advanced
materials, Advanced Manufacturing Technologies 12.
DISCUSSION AND ANALYSIS OF FINANCIAL
and automation to improve product quality and PERFORMANCE WITH RESPECT TO OPERATIONAL
achieve operational efficiencies. PERFORMANCE:
10. CUSTOMER ORIENTATION (` in Lakh)
During the year, the Company has undertaken following Sl. Particulars Year Ended Year Ended
initiatives towards customer orientation: No 31st March, 31st March,
2022 2021
• Implementation of new Customer Feedback 1 Turnover 24,36,166 22,50,096
Mechanism and CSAT (Customer Satisfaction) Index:
2 Revenue from Operations 24,62,021 22,88,236
The Company has upgraded the system of collecting 3 Value of Production 23,76,948 20,04,352
feedback from customers across all levels. The physical
4 Gross Margin 6,39,916 5,69,368
performance in the areas of AOG, RMSO & RRT clearance
are also factored in to arrive at final Customer Satisfaction 5 Profit Before Tax 5,23,115 4,27,738
Index for each Division, which will be utilised for rating the 6 Tax Expense 14,465 1,03,793
Divisions.
7 Profit After Tax 5,08,650 3,23,945
• Introduction of Minimizing AOG Programme: 8 R&D Expenditure 1,96,691 1,68,740
A programme to forecast and minimise AOG so as to 9 Net Worth 19,26,400 15,36,818

enable Customer to improve their serviceability and 10 Trade Receivable 4,64,155 5,66,955
operational preparedness has been initiated. 11 Cash and Bank Balance 14,34,361 7,16,633
• Introduction of e-mechanism to address various 12 Borrowings - 907
Customer issues 13 Book Value Per Share (`) 576.10 459.59
HAL has introduced a digital methodology to address 14 Earnings Per Share (`) 152.11 96.88
various customer issues involving technical, supply chain 15 Dividend Per Share (`) 40.00 30.00
and finance in a time bound manner.
16 Debtors Turnover Ratio 4.73 2.66
• Introduction of online BQ portal 17 Inventory Turnover Ratio 1.57 1.24
HAL has implemented BQ portal for online submission 18 Interest Service Coverage Nil Nil
of BQ (Budgetary Quotes) for various requirements of Ratio
Customer, thereby reducing Customer procurement 19 Current Ratio 1.8:1 1.6:1
timelines. 20 Debt Equity Ratio Nil Nil
11. INTERNAL FINANCIAL CONTROLS 21 Operating Profit Margin (%) 17% 17%
22 Net Profit Margin (%) 21% 14%
11.1 The Company has set up proper and adequate Internal
Financial Controls with respect to financial statements. 23 Return on net worth % 26% 21%
Systems Audit is carried out by an internal team of officials
with a combined finance and technical background. This Reason for significant changes in ratios:
is in addition to the internal audit by firms of Chartered • Debtors Turnover Ratio improved in FY 21-22 due to
Accountants/ Cost Accountants. Manuals pertaining to improved collection from customers.
various functions/activities such as Purchase, Outsourcing,
Stores, Accounts, Systems Audit etc., have been updated • There is a growth in sales during the current year
and implemented. Any instance of material weakness in as compared to previous year and also there is a

considerable reduction in holding of inventory in the Officers selected through Indian Engineering Services
current period has resulted improvement in Inventory (IES) was designed and organized by HMA. The training
Turnover Ratios. encompassed technical modules on Aerodynamics,
Manufacturing technologies, Aircraft Systems, Quality
• Net Profit Margin has improved in FY 21-22 due
fundamentals, Life Cycle Management, MRO aspects,
to receipt of Income Tax Refund of previous years
Behavioral Competencies etc. and included special lectures
amounting to `1193 Crores.
by Industry experts.
• Return on Networth has improved in FY 21-22 due
to receipt of Income Tax Refund of previous years (ii) Mutual Expression of Interest between HAL and
amounting to `1193 Crores and retention of profit in Indian Navy: HAL signed a Mutual Expression of
Reserves. Interest (MEI) with the Indian Navy for organising and
conducting academic programs for Naval Officers leading
13. HUMAN RESOURCE DEVELOPMENT to Certification, Award of Degree / Diploma, Seminars and
Conferences and any such activity towards sharing and
13.1
During the year, the Human Resource Development
initiatives were focussed on developing competencies enhancing of knowledge and skills in the Aviation and
and thereby creating a competitive Performance driven Aerospace domains.
culture amongst Employees. In order to augment the (iii) HMA Hybrid Certification Program: To foster the
efforts that develop core HR Competencies within the culture of Learning & Development, HMA offered its own
Company, foundations were placed through initiating customised Online Certification programs on HMA’s portal
dialogue among HR Professionals in areas such as ‘HMA NeXt’ which is conducted on an Online Learning
Performance Management, HR Analytics, Strategy, Management System. The program concludes with an
Competency Mapping, Succession Planning and Training Online examination on the LMS Portal enabling the
& Development. participants to be eligible for their Promotion.
13.2
Succession Management Dashboard was developed (iv) MOOC (Massive Open Online Courses) Programs:
and released during the year that would help the Top Executives were encouraged to take up courses from
Management in effectively planning successions, by the Best Universities across the world through MOOC
collating data from various sources. The Fifth batch of Programs. Courses from platforms such as Coursera, edX,
Leadership Development Programme commenced during NPTEL etc. were introduced to Officers. During the year,
the Year to enable continual availability of leadership pool 112 MOOC programs were conducted and completed by
within the Company.
3150 Officers.
13.3 In order to delve into the qualitative aspects of creating (v) Institution Programs: HMA collaborated with reputed
a leadership pipeline, to strengthen Assessment criteria Institutions such as IIM-Ahmedabad, IIT-Madras, IIT
and to foster a culture of Learning & Development,
Kanpur, IIT-Kharagpur, IIIT-Dharwad, IICA, NITIE, NLSIU,
amendments in the prevailing Promotion Policy for
IMTMA, CII, ISI, and ISME for various Management
Executives were released. To strengthen and build the
Development Programs, MTs/DTs Training Programme and
Innovation Culture of the Company, a Rewards & Incentive
PGDM programmes.
Scheme for creating of Intellectual Property Rights (IPR)
was introduced during the Year. (vi) ‘DISHA’ - Capability Enhancement for Board Roles
Program for Nominee Directors: HMA conducted a one
13.4 During the year, 20 Officers were sponsored for Online
day program ‘Capability Building Workshop’ for Nominee
M.Tech (Aerospace Engineering) Course at IIT Madras.
Directors with an objective of imparting insights on
14. HAL MANAGEMENT ACADEMY (HMA) Governance and Strategy, Roles and Duties of Directors,
Board Dynamics and its roles in building a resilient
During the year 2021-22, HMA organized 114 Programs company.
including MDPs, LDP, Revenue Generating & Post Graduate
Diploma courses during 2021-22 achieving the planned target 15. SKILL DEVELOPMENT
in the Covid-19 pandemic situation. These programs were
15.1 Skill Development Policy (SDP) for the employees in non-
attended by 8,948 participants comprising about 17,141 man-
executive cadre has been introduced in HAL in July 2016
days of training. In addition, Executives were encouraged to
with an objective to enhance individual’s skill, knowledge
take up training in MOOC programs, live interactive classes on
online platforms. Some of the initiatives undertaken in training and understanding to achieve performance excellence by
during 2021-22 are as follows: eliminating waste in terms of Rework, Rejection & Pre-
mature product failures, thereby enhancing productivity,
(i) Training for DGAQA Probationary Officers: A 12 weeks quality & customer satisfaction and strengthening the
of Induction Training Program for DGAQA Probationary competitiveness of the company.

15.2 More than 775 training contents have been developed and Barrackpore have taken measures towards Environment
to impart skill training to the employees across HAL by Protection & Conservation, governed by various Acts &
the domain specialists. Assessment is carried out after Rules like the Hazardous and Other Wastes (Management
the training and coaching/mentoring so as to measure and Transboundary Movement) Rules, 2016, Solid Waste
the effectiveness of the training and improvement in skill Management Rules, 2016, Air Prevention and Control of
levels. Pollution Act (1981), Environment (Protection) Act, 1986,
Water Act 1974 (Prevention and Control of Pollution), etc. All
15.3 Training Delivery: Over 4200 employees having skill gap
the Divisions are ISO 14001 certified and comply with the rules
have completed Classroom Training (CRT), Shop Floor
prescribed by respective State Pollution Control Boards. All
Training (SFT)/Work Place Training (WPT) & Coaching/
emissions and waste generation is monitored as prescribed by
Mentoring (CMT) process across HAL during the year 2021-
the Pollution Control Boards.
22. Overall, 10000 employees (96%) have completed CRT,
SFT & CMT out of 10450 employees having skill gap. Various measures taken by the Company for environment
15.4 Assessment of Employees: More than 9000 employees protection and conservations are as under:
(90%) have been assessed to measure the effectiveness
Solid Waste Management: Municipal Solid Waste (MSW)
of training process and its impact on skill level out of
generated from Townships and Factories is segregated at
the 10000 employees who have completed CRT, SFT/
source in Townships and Factories (Wet, Dry, Garden, Sanitary
WPT&CMT.
and Rejects). Through the process of Vermi-Composting, the
Training within Industry (TWI): TWI is a problem
15.5 Bio-degradable waste comprising of domestic waste and
solving tool, used for stabilizing and standardizing work to horticulture waste is being converted to manure. For better
reduce the variations and boost productivity. As on March utilization of biodegradable waste generated from HAL Estates,
31, 2022, 415 TWI projects have been identified and the Company has installed Solid Waste Management Units like
completed in the vital areas of Manufacture, Assembly Organic Waste Converters and Bio Gas Plants at select places.
and Maintenance of Rotary wing and Fixed wing Aircrafts. At Bangalore, 1.5 Tons per day capacity bio-gas plants are
750 employees have newly acquired critical skills. This has installed.
improved productivity and resulted in reduction of cycle
time and cumulative savings of approx. ` 40 Crores. Hazardous Waste Management: The Divisions which
use and generate hazardous effluents such as chrome, acid/
15.6 An MoU was signed with AASSC regarding assessment alkali, cyanide etc are having independent Effluent Treatment
and certification of 1000 employees in phase I. During Plants (ETPs) for treatment. Effluent samples after treatment
the year, 983 tenure based and regular employees were are periodically checked in the Laboratories. The sludge from
assessed and certified against NCVET (National Council for the ETPs is disposed through Agencies authorized by Pollution
Vocational Education and Training) approved aerospace Control Boards. The waste water discharged from the ETPs is
Job roles. Totally,1186 employees have been assessed and tested and further treated in Sewage Treatment Plants (STPs)
certified upto March 31, 2022. if meeting the norms. The water processed in the STPs is
Mission Prakshalan (5S implementation): Mission
15.7 being used for horticulture purposes within the Divisions and
Prakshalan has been launched in all the Departments no waste water is discharged to the public areas. The sludge
across HAL to transform the organization into a clean, safe generated from the STPs is converted into manure and reused.
and efficient world-class Organization. It is being executed e-Waste Management: The Company , as part of its
by identified officers trained as 5S Champions. As on operations, generates e-waste from old Electrical and
March 31, 2022, 201 projects have been completed and Electronics Systems such as LRUs, Avionics Control / Test
over 600 employees have been trained. Systems, Electronics Items in Plant & Machinery, Computer
16. MANPOWER Systems (IT) and Communication Systems, which needs to
be disposed after their life expiry or damage. Apart from
Total Officers Workmen Total production activities, e-waste is also generated in Townships
Employees Workmen which is segregated and collected at source. The e-waste
Direct Indirect
as on 31st generated & collected is stored in designated areas (under
March cover) and auctioned through with MSTC Limited (Central
2022 PSU) for disposal through authorized Dismantlers / Recyclers
25,412 7,783 11,284 6,345 17,629 / Refurbishers.
Waste Oil Management: Waste Oil produced during

17. ENVIRONMENT PROTECTION & CONSERVATION
maintenance / overhauling of equipment, vehicles and
Various Divisions of the Company located at Bangalore, Nasik, machinery is collected at source in leak proof containers. The
Koraput, Hyderabad, Lucknow, Kanpur, Korwa, Kasaragod same is stored safely in demarcated areas inside salvage yards

and handed over to recyclers authorized by the respective Renewable Energy:
Pollution Control Boards, through MSTC.
Rooftop solar: HAL has installed a total of 7.9 MW capacity
Most of the Divisions have taken initiatives towards banning Rooftop based Solar Energy Systems, till date.
of Plastics Bags / Articles and declaring ‘No-Plastics’ Zones.
The Non bio-degradable waste like polythene etc., is being Ground mounted solar: HAL has installed a total of 26.50
collected and sent to recycling Agencies, as per Rules. MW capacity Solar power plants, till date.
The Company has taken an initiative towards recycling and Wind Energy: HAL has installed 14.7 MW capacity wind
reusing the waste paper generated from various offices of HAL, power plants in Karnataka.
Bangalore by setting up a Waste Paper Recycling Unit (75kg
The entire energy generated by the above power plants is
/ day). Various products made from the unit include Writing
utilized for captive consumption at our production units. The
Pads, Visiting Cards, Bags, Files, Folders, etc.
captive consumption is avoiding more than 79000 Tons of
Rain Water Harvesting (RWH): CO2e emissions annually thereby contributing to the mitigation
of climate change.
The Company has installed Rain Water Harvesting (RWH)
systems at all its locations. The stored water is used for The Company has established a 560KW solar power plant at
gardening and other non-potable uses. Rain Water Harvesting its Hyderabad Division to meet the approx. 70% Township
Systems are made compulsory in all new Buildings. Electricity requirements and a 2MW solar power plant has been
established to cater to 40% of Divisional requirement.
Water bodies like Lakes and Ponds adjacent to some of the
Divisions, are cleaned and taken care as a step towards ensuring
availability of constant source of Ground Water.
The Lake De-siltation, afforestation & Water –literacy works

were undertaken by HAL under CSR as part of the Kumudavathi
River Rejuvenation Projects - Phase 2 activities.
Afforestation: The Company has been planting saplings every

year. The Division-wise details of saplings planted during the
years 2021-22 & 2020-21 are as indicated below:
Sl. Name of the Division Total number of

No. / Complex Saplings planted during
2021-22 2020-21
1 Bangalore 1127 1002
2 Koraput 24350 2600
3 Nasik 2600 850
4 Korwa 5000 1251
5 Lucknow 2200 16630
6 Barrackpore 607 564
7 TAD, Kanpur 2790 5600
8 Hyderabad 2300 11905
Total 40974 40402

Corporate Governance Report
1.
A BRIEF STATEMENT ON YOUR COMPANY’S The sanctioned strength of the Board of Directors of the
PHILOSOPHY AND CODE OF GOVERNANCE Company consist of:
Your Company has a well-defined Corporate Governance • Five Whole-time/ Functional Directors including
system which underlines its commitment to quality of Chairman and Managing Director (CMD);
governance, honesty, integrity, accountability, disclosures,
• Two Government Nominee Directors; and
Corporate Social Responsibility, transparency in decision
making and accountability to take care of the interest • Seven Independent Directors
of all the stakeholders. The Company believes that all its
operations must be spearheaded towards attaining the As on March 31, 2022, the Board of Directors of the
final objective of enhancing the stakeholders’ value and Company comprised of four Whole time / Functional
financial prudence. Your Company being a Public Listed Directors including the Chairman and Managing Director,
Company adheres to Corporate Governance requirements two Government Nominee Directors and one Non-
for listed entity enunciated by Department of Public Executive (Independent) Director.
Enterprise (DPE) and SEBI (LODR) Regulations. Your Company being a Government Company, the
appointment of all Directors is done by the President
The Board of Directors (“The Board’) is at the core of
of India, through the Ministry of Defence (MoD). As on
our Corporate Governance practice and ensure that the
March 31, 2022, the position of 6 independent directors
management serves and protects the long term interest of
were lying vacant due to completion of their tenure. The
all our stakeholders.
matter with respect to filing of vacant post of independent
Your Company has formulated and uploaded the following directors is under consideration with MoD.
policies/codes on its website at www.hal-india.co.in in line
Directors are not inter se related to each other.
with the Companies Act, SEBI (LODR) Regulations and DPE
Guidelines: (a) Composition and Category of Directors
• Code of Business Conduct and Ethics for Board As on March 31, 2022, the composition of the Board of
Members and Senior Management Directors of the Company was as under:
• Insider Trading Policy
Sl. Name of Director DIN
• Policy on Related Party Transactions No.
• Policy on determination of Materiality of Disclosures Whole-time / Functional Directors (Executive)
• Policy for Preservation and Archival of Documents 1 Shri R. Madhavan, 08209860
• Training Policy for Directors Chairman and Managing Director and
*Addl. Charge of Director (Operations)
• Corporate Social Responsibility Policy
2 Shri Arup Chatterjee, 08139347
• Whistle Blower Policy Director (Engineering and R&D)
• Risk Management Policy
3 Shri C.B. Ananthakrishnan, 06761339
• Dividend Distribution Policy Director (Finance) and CFO
• Policy on determining Material Subsidiary 4 Shri Alok Verma, 08652280
• Policy on Business Responsibility Report Director (Human Resources)
• HR Manuals Government Nominee Directors (Non-Executive)
• Vigilance Manuals containing vigil mechanism 1 Shri Chandraker Bharti, 02599261

Joint Secretary (Aero), DDP, MoD
2. BOARD OF DIRECTORS
2 Dr. Tessy Thomas, 08189164
The Board of Directors headed by the Executive Chairman DG (Aeronautical Systems), DRDO
and Managing Director (CMD) is the apex body which
Independent Directors (Non-Executive)
oversees the functioning of the Company. The Board
provides long-term vision and strategic thinking in order to 1 Dr Divya Gupta 00236773
improve the quality of governance. It has constituted Sub-
Committees to facilitate smooth and efficient decision- * For a period of 3 months from 01.03.2022 or till the post of
making process. Director (Operations) is vacant, whichever as earlier.

(b) Meeting and attendance of Directors and their Committee details:
Sl. Directors Board Meeting No. of Attendance No. of other Name of other No. of Committee
No held during Meetings at the 57th Directorship listed entity memberships across
respective attended AGM in which all Companies #
tenure of Directorship As As
Director held & category Chairman Member
Whole-time/ Functional (Executive) Director

1 Shri R. Madhavan 12 12 Yes 2 Nil Nil Nil
2 Shri Arup Chatterjee 12 12 Yes 1 Nil Nil Nil
3 Shri C.B. Ananthakrishnan 12 12 Yes 1 Nil Nil 2
4 Shri M S Velpari* 11 11 Yes Nil Nil Nil Nil
5 Shri Alok Verma 12 12 Yes 1 Nil Nil 1
Government Nominee Director (Non-Executive)
6 Shri. Chandraker Bharti 12 11 Yes 4 Government Nil Nil
Nominee
Director-Bharat
Dynamics Limited
7 Dr. Tessy Thomas 12 12 No Nil Nil Nil Nil
Independent (Non-Executive) Director
8 Dr. S. Malla Reddy* 3 3 NA Nil Nil 1 1
9 Rear Adml. K.C. Shekar, 3 3 NA Nil Nil 1 1
AVSM, VSM (Retd.)*
10 Dr Divya Gupta* 3 3 NA 2 Nil 1 Nil
*Note
• Shri M S Velpari ceased as Director on the Board of the Company due to his superannuation on 28.02.2022.
• Rear Adml K C Sekhar and Dr Malla Reddy ceased as Independent Director on the Board of the Company due to Completion of their tenure
on 23.07.2021.
• Dr Divya Gupta appointed as Independent Director w.e.f 28.12.2021.
# In accordance with Regulation 26 of the SEBI (LODR) Regulations, 2015, Membership / Chairpersonship of only Audit Committee and
Stakeholders’ Relationship Committee are considered.
Notes:
i) None of the Directors is a Member of more than 10 Committees or Chairman of more than 5 Committees, across all the
Companies in which he is a Director;
ii) None of the Directors serves as a Director in more than 7 listed Companies and as Independent Director in more than 7 listed
Companies;
iii) As on March 31, 2022, none of the Directors is holding any share in the Company;
iv) Details of the Directorship on the Board of other Companies and Committee positions thereof are as on the date of cessation
from the Board of the Company.
(c) Meetings of the Board of Directors

Twelve (12) Board Meetings were held during the financial (e) Skills/ Expertise/ Competence of the Board
year ended on March 31, 2022. The details are as under:
HAL being a Government Company, its Directors are
Sl. Date of Board Sl. Date of Board appointed / re-appointed by the President of India
No Meeting No Meeting through the Administrative Ministry. The skills /expertise/
1 10th May, 2021 7 21st September, 2021 competency of the Board as required in the context of
the business pertaining to the Company are identified
2 28 June, 2021
th
8 25th October, 2021
by the Government of India and accordingly selection
3 16th July, 2021 9 11th November, 2021 of Directors on the Board of the Company is made by
4 6th August, 2021 10 5th January, 2022 the Government. As such, all the Board Members of
5 13 August, 2021
th
11 10th February, 2022 the Company have expertise and competency as per the
Industry requirement.
6 30th August, 2021 12 24th March, 2022
(d) Web link of familiarisation programmes imparted to 3. AUDIT COMMITTEE

Independent Directors: (a) Terms of Reference: The Terms of Reference of
In order to familiarise the Independent Directors with their the Audit Committee are as provided under the
roles, rights, responsibilities, business model, nature of the Companies Act (except to the extent of exemptions
industry in which the Company operates, various policies granted to the Government Companies) and
and processes, etc. the Company undertakes various SEBI (LODR) Regulations (except to the extent of
familiarisation programmes from time-to-time. exemptions provided by SEBI to the Company) and
other applicable Guidelines to CPSEs.
The details of the familiarisation programs imparted to
Independent Directors are hosted on the website of the (b) No. of Meetings: During the financial year ended on
Company at https://hal-india.co.in/Common/Uploads/ March 31, 2022, two (2) Audit Committee Meetings
DMS/Familiarization%20programmes%20imparted%20
were held on June 28, 2021 and July 16, 2021.
to%20Ind%20Dir%20-July%202022.docx.pdf
(c) Composition of the Committee as on March 31, 2022 and Meetings attended by each member:
Member of the Committee Category Position Meeting

Held Attended
Rear Admiral K C Sekhar, AVSM, VSM (Retd.)* Independent Director Chairman 2 2
Dr S Malla Reddy* Independent Director Member 2 2
Shri C B Ananthakrishnan Director (Finance) & CFO Member 2 2
*Note
Rear Adml K C Sekhar and Dr Malla Reddy ceased as Independent Director on the Board of the Company due to completion
of their tenure on 23.07.2021.
Director (Operations) is permanent invitee to the Committee.
Company Secretary is the Secretary to the Committee.
The Committee was reconstituted on May 4, 2022 with the following members:
 Shri Deepak Abasaheb Shinde - Chairman
 Dr. Divya Gupta
 Director (Finance)
Director (Operations) is Permanent Invitees to the Committee.
Company Secretary is the Secretary to the Committee

4. NOMINATION & REMUNERATION COMMITTEE (NRC)
(a) Terms of Reference: The Terms of Reference of the Nomination and Remuneration Committee are as provided under
the Companies Act (except to the extent of exemptions granted to Government Companies) and SEBI (LODR) Regulations
(except to the extent of exemptions provided by SEBI to the Company) and other applicable Guidelines to CPSEs.
Further, the Company, being a Government Company, the appointment, tenure and remuneration of functional directors
are decided by the Government of India.
The appointment/ remuneration and other matters in respect of Key Managerial Personnel (KMP) and Senior Management
Personnel are governed by the HAL Recruitment Rules and Procedures and subject to the policies and directives that may
be issued by the Board of Directors and/or CMD as the case may be from time to time. Pay Scales of KMPs and Senior
Management Personnel are governed by the DPE Guidelines and Presidential Directives received from the Ministry of
Defence.
(b) No. of Meetings: During the financial year ended on March 31, 2022, Three (3) meetings of the Committee were held
on May 31 2021, June 28, 2021 and July 16, 2021

Held Attended
Rear Admiral K C Sekhar, AVSM, VSM Independent Director Chairman 3 3
(Retd)*
Dr S Malla Reddy* Independent Director Member 3 3
Dr. Tessy Thomas Government Nominee Member 3 3
Director
*Note
Rear Adml K C Sekhar and Dr Malla Reddy ceased as Independent Director on the Board of the Company due to
completion of their tenure on 23.07.2021.
Director (HR) and Director (Finance) & CFO are permanent invitees to the Committee.
Company Secretary is the Secretary to the Committee.
The Committee was reconstituted on May 4, 2022 with the following members:
 Shri Deepak Abasaheb Shinde – Chairman
 Dr. Divya Gupta
 Dr. Tessy Thomas
Director (HR) and Director (Finance) & CFO are permanent Invitees to the Committee.
Company Secretary is the Secretary to the Committee
5. STAKEHOLDERS RELATIONSHIP COMMITTEE (SRC)

(a) Terms of Reference: The main Terms of Reference of the Committee are as under:
(i) Resolving the grievances of the security holders of the Company including complaints related to transfer/transmission
of shares, non‐receipt of annual report, non‐receipt of declared dividends, issue of new/duplicate certificates,
general meetings etc.
(ii) Review of adherence to the service standards adopted by the listed entity in respect of various services being
rendered by the Registrar & Share Transfer Agent.

(iii) To review transfer, transmissions, dematerialization, re‐materialization, splitting, consolidation etc. of Equity Shares
and other securities issued by our Company, as approved by the Committee constituted for the purpose and report
the same to the Board of Directors in its subsequent meeting.
(b) No. of Meetings: During the financial year ended on March 31, 2022, One (1) meeting of the Committee was held on
March 24, 2022.

Held Attended
Dr. S Malla Reddy* Independent Director Chairman NA NA
Dr Divya Gupta* Independent Director Chairperson 1 1
Shri C.B. Ananthkrishnan Director (Finance) & CFO Member 1 1
Shri Alok Verma Director (HR) Member 1 1
*Note
• Dr Malla Reddy ceased as Independent Director on the Board of the Company due to completion of his tenure on
23.07.2021.
• Dr Divya Gupta appointed as Independent Director w.e.f 28.12.2021 and appointed as Chairperson of the
Committee w.e.f 10.02.2022.
Company Secretary is the Secretary of the Committee.
(d) Name and Designation of Compliance Officer
Shri G.V. Sesha Reddy,

Company Secretary & Compliance Officer
15/1, Cubbon Road, Bengaluru – 560 001. Karnataka
Phone: (080) 2232 0001, Fax: (080) 2232 0758
Email: investors@hal-india.co.in
(e) Number of shareholders’ complaints received upto March 31, 2022: 195
(f) Number of shareholders’ complaints resolved upto March 31, 2022: 195
(g) Number of pending complaints as on March 31, 2022: Nil
6. CSR & SUSTAINABLE DEVELOPMENT COMMITTEE (CSR & SD)

(a) Terms of Reference: The Terms of Reference of the CSR & Sustainable Development Committee are as provided under
the Companies Act and Companies (CSR Policy) Amendment Rules, 2021 and other applicable guidelines to CPSEs. The
Committee formulates and recommend to the Board the CSR Policy, annual action plan, modalities of the utilisation of
funds, implementation schedule of CSR projects / programmes and monitoring of CSR and Sustainable Development
activities in the Company.
(b) No. of Meetings: During the financial year ended on March 31, 2022, Three (3) meetings of the Committee were held
on April 19, 2021, May 7, 2021 and March 24, 2022.


Held Attended
Rear Admiral K C Sekhar, Independent Director Chairman 2 2
AVSM, VSM (Retd.)*
Shri R Madhavan* CMD and Addl Charge Member 1 0
Director (Operations)
Shri M S Velpari* Director (Operations) Member 2 2
Shri Alok Verma Director (HR) Member 3 3
*Note
• Rear Admiral K C Sekhar ceased as Independent Director on the Board of the Company due to completion of his
tenure on 23.07.2021.
Committee w.e.f 10.02.2022
• Shri R Madhavan, CMD has entrusted additional charge of the post of Director (Operations) for a period of three
months with effect from 01.03.2022 or till the post of Director (Operations) is vacant whichever is earlier.
• Shri M S Velpari ceased as Director (Operations) on the Board of the Company due to his superannuation on
28.02.2022.
All CEOs of the Complexes, General Manager (Finance) and Head of Corporate CSR are permanent invitees to the
Committee.
Company Secretary is the Secretary of the Committee
7. RISK MANAGEMENT COMMITTEE

(a) Terms of Reference: The Risk Management Committee shall annually review and approve the Risk Management
Policy and associated frameworks, processes and practices of the Company. The Committee shall review and assess the
adequacy of the Risk Management Policy and recommend changes to the Board for approval.
(b) No. of Meetings: During the financial year ended on March 31, 2022, One (1) meeting of the Committee was held on
24th March, 2022.

Held Attended
Rear Admiral K C Sekhar, Independent Director Chairman NA NA
AVSM, VSM (Retd.)*
Shri R Madhavan* CMD and Addl Charge Director Member 1 0
(Operations)
Shri Arup Chatterjee Director (Engineering and R&D) Member 1 1
Shri M S Velpari* Director (Operations) Member NA NA
Shri Alok Verma Director (Human Resources) Member 1 1
*Note
• Rear Admiral K C Sekhar ceased as Independent Director on the Board of the Company due to completion of their
tenure on 23.07.2021.

Committee w.e.f 10.02.2022
• Shri M S Velpari ceased as Director on the Board of the Company due to his superannuation on 28.02.2022.
• Shri R Madhavan, CMD has entrusted additional charge of the post of Director (Operations) for a period of three
months with effect from 01.03.2022 or till the post of Director (Operations) is vacant whichever is earlier.
All CEOs of the Complexes and GM (CS & QA) (Corporate Office), are permanent invitees to the Committee.
Company Secretary is the Secretary of the Committee.
8. OTHER COMMITTEES OF THE BOARD

Apart from the statutory committees, the Board has constituted the following non-statutory Committees and power has
been delegated for smooth operation of the Company:
HR Committee, Management Committee, Technology & Design Policy Committee, R & D Sub Committee and Procurement
Committee.
9. REMUNERATION OF DIRECTORS
Your Company being a Government Company, the remuneration, benefits and Performance Related Pay (PRP) of Functional
Directors are as per extant DPE Guidelines. Ministry of Corporate Affairs (MCA) has exempted Government Companies from
formulating policy relating to remuneration of Directors required under Section 178 of the Companies Act.
Part-time Official Directors (Government Nominee Directors) are not entitled to any remuneration /sitting fees as per DPE
Guidelines.
The Part-Time Non-Official Directors (Independent Directors) are paid a sitting fee of `30,000/- per meeting of the Board and
`25,000/- per Committee Meeting, as approved by the Board within the ceiling fixed under the Companies Act and as per
the guidelines issued by the Government of India.
The details of remuneration paid to Functional Directors during the financial year 2021-22 were as follows:
(In `)
Sl. Name / Designation of Salary and Perquisites as per Section Retirement & Total
No Directors 17(1) & (2) of the Income Tax Act, 1961 other benefits
1 Shri R. Madhavan 68,07,945 - 68,07,945
2 Shri Arup Chatterjee 60,53,605 - 60,53,605
3 Shri C.B. Ananthakrishnan 60,28,313 - 60,28,313
4 Shri M S Velpari 80,64,706 23,00,000 1,03,64,706
5 Shri Alok Verma 51,93,029 - 51,93,029
During the year, sitting fee paid to the Part-Time Non-Official Directors (Independent Directors) for attending the meetings of
the Board and Committees were as follows:-
(In `)
Sl. Name of Independent Director Board Meetings Committee Total Sitting Fees
No Meetings
1 Dr S. Malla Reddy* 90,000 1,50,000 2,40,000
2 Rear Admiral K.C. Sekhar, AVSM, VSM (Retd.)* 90,000 2,00,000 2,90,000
3 Dr Divya Gupta# 90,000 75,000 1,65,000
*Ceased as Independent Director w.e.f 23.07.2021

#Dr Divya Gupta appointed as Independent Director w.e.f 28.12.2021
10. INDEPENDENT DIRECTORS’ MEETING

During the year, One (1) Meeting of Independent Directors was held on July 6, 2021.

11. CONFIRMATION ON INDEPENDENCE OF THE INDEPENDENT DIRECTORS
As per the Companies Act, 2013, Independent Directors have submitted declaration of independence to the Board and the
Board hereby confirms that all Independent Directors fulfil the conditions specified in the Companies Act and SEBI (LODR)
Regulations, 2015 and are independent of the management.
12.
CODE OF BUSINESS CONDUCT AND ETHICS FOR BOARD MEMBERS AND SENIOR MANAGEMENT (CODE OF
CONDUCT)
The Company is committed to conduct its business in accordance with the highest standards of business ethics and complying
with applicable Laws, Rules and Regulations. A copy of the Code of Conduct is available on the Company’s website at www.
hal-india.co.in/Investors. All members of the Board and Senior Management have confirmed their compliance with the Code
of Conduct for the year under review. A declaration signed by the Chairman & Managing Director is appended to this report.
13. INSIDER TRADING POLICY

In pursuance of SEBI (Prohibition of Insider Trading) Regulations, 2015, the Board of Directors of the Company has approved
the Insider Trading Policy for dealing in securities of the Company by insiders.
The Policy is framed to ensure that the insiders do not derive any benefit or assist others to derive any benefit from access to
and possession of price sensitive information about the Company which is not in the public domain.
14. CEO/CFO CERTIFICATION

In terms of Regulation 17(8) of SEBI (LODR) Regulations, 2015 the Compliance Certificate issued by the CEO and CFO on the
financial statements and internal controls relating to financial reporting for the year 2021-22 was submitted to the Board at
its 455th meeting held on 13th May, 2022 and is attached to this Report.
15. SHAREHOLDING PATTERN AS ON MARCH 31, 2022
Sl. Category Number of Number of % of total

No. shareholders shares held holding
1 President of India 1 25,12,92,407 75.15
2 Qualified Institutional Buyer 26 2,95,66,918 8.84
3 Mutual Funds 82 2,61,71,905 7.83
4 Foreign Portfolio - Corp 229 1,46,08,619 4.37
5 Resident Individuals 209886 92,45,967 2.77
6 Bodies Corporates 592 10,48,856 0.31
7 Insurance Companies 2 9,99,662 0.30
8 HUF 5225 4,05,223 0.12
9 Clearing Members 199 3,96,616 0.12
10 Non Resident Indians 2357 3,67,617 0.11
11 Non Resident Indian Non Repatriable 1106 1,19,799 0.04
12 Alternative Investment Fund 4 1,16,540 0.03
13 Employees 1221 41,489 0.01
14 Trusts 7 5,882 0.00
Total 220937 33,43,87,500 100.00

15.1 Top 10 Shareholders as on March 31, 2022 (Based on PAN)
Sl. Name Number of % of total

No shares held holding
1 President of India 25,12,92,407 75.15
2 Life Insurance Corporation Of India 2,88,58,712 8.63
3 HDFC Large and Mid Cap Fund 1,50,40,637 4.50
4 Nippon Life India Trustee Ltd 31,06,353 0.93
5 ICICI Prudential Manufacturing Fund 19,45,842 0.58
6 Aditya Birla Sun Life Trustee Private Limited 19,42,209 0.58
7 Stichting Depositary Apg Emerging Markets Equity 15,41,766 0.46
8 Mirae Asset Midcap Fund 8,31,088 0.25
9 Tata Mutual Fund- Tata Equity P/E Fund 7,57,000 0.23
10 Kotak Equity Arbitrage Fund 7,45,267 0.22
15.2 Distribution of Shareholding by Size as on March 31, 2022
Category Number of % of Total Number of % of

Shareholders Shareholders Shares Shareholding
1 - 5000 220535 99.82 87,79,318 2.63
5001 - 10000 113 0.05 8,25,057 0.25
10001 - 20000 79 0.04 11,82,203 0.35
20001 - 30000 32 0.01 7,78,947 0.23
30001 - 40000 17 0.01 5,81,334 0.17
40001 - 50000 19 0.01 8,52,080 0.25
50001 -100000 62 0.03 43,40,612 1.30
100001 and above 80 0.04 31,70,47,949 94.81
TOTAL 2,20,937 100.00 33,43,87,500 100.00
16. GENERAL BODY MEETINGS

(a) Details of the last three Annual General Meetings are as follows:
Meeting No. Financial Year Venue Date & Time

56th
2018-19 Dr. V M Ghatge Convention Centre, September 18, 2019
HAL, Next to HAL Hertiagte Centre and at 1600 Hrs
Aerospace Museum, Old Airport Road,
Marathahalli Post, Bengaluru-560037
57th 2019-20 Through Video Conferencing (VC) September 30, 2020 at 1500 Hrs
from Hindustan Aeronautics Limited
Corporate Office, 15/1, Cubbon Road,
Bengaluru-560001
58th 2020-21 Through Video Conferencing (VC) September 30, 2021 at 1500 Hrs
from Hindustan Aeronautics Limited
Corporate Office, 15/1, Cubbon Road,
Bengaluru-560001

(b) Special Resolutions
i. During the 56th Annual General Meeting, two special resolutions were put up w.r.t Alteration of the Articles of
Association and Re-appointment of Ms. Dipali Khanna, Independent Women Director of the Company.
ii. No Special Resolution was put up during 57th and 58th Annual General Meeting.
(c)
No special resolution was passed last year through postal ballot and no special resolution is proposed to be conducted
through postal ballot.
17. MEANS OF COMMUNICATION

(a) Quarterly/ Annual Results: The Company regularly updates its audited financial results with the Stock Exchanges, in
compliance with the Listing Regulations. These financial results are published in one leading English newspaper having
wide circulation across the Country and in one Kannada newspaper having wide circulation across the region. The results
are also made available on the Company website.
(b) News Release, Presentation etc.: The official news releases, detailed presentations made to media, institutional
investors, financial analysts etc. are posted on the website of the Stock Exchanges and displayed on the Company’s
website www.hal-india.co.in.
(c) Website: The Company’s website www.hal-india.co.in contains separate dedicated section for Investors where
information for shareholders is made available. The Annual Report and Shareholding Pattern, Corporate Governance
Report, details of unclaimed dividend and other communiqué of the Company are also available on the website in a
user-friendly manner.
(d) Annual Report: Annual Report containing Financial Statements, Auditors’ Report, Board’s Report, Management
Discussion and Analysis Report (MDAR), Corporate Governance Report and Business Responsibility and Sustainability
Report including Information for the Shareholders and other important information is circulated through electronic
mode to the members and others entitled thereto, as per MCA Circular No.20/2020 dated May 5, 2020 and General
Circular No. 02/2021 Dated January 13, 2021, General Circular No. 02/2022 dated May 5,2022 and SEBI Circular dated
May 13, 2022.
18. SHAREHOLDERS’ INFORMATION

(a) Annual General Meeting
The 59th Annual General Meeting of the Company for the year 2021-22 will be held through video conferencing as per
the MCA General Circular No. 02/2021 dated January 13, 2021, SEBI Circular No. SEBI//HO/CFD/CMD2/CIR/P/ 2021/11
dated January 15, 2021 and MCA General Circular No. 02/2022 dated May 5, 2022 as per the following details:
Date Monday, August 29, 2022

Time 3.00 P.M. (IST)
(b) Financial Calendar
The financial calendar to approve quarterly/ annual audited financial results for the year 2022-23 is as under:
Approval of quarterly/ annual audited financial results Tentative date of the Meeting of the Board
June 30, 2022 On or before August 13, 2022
September 30, 2022 On or before November 14, 2022
December 31, 2022 On or before February 14, 2023
March 31, 2023 On or before May 30, 2023
(c) Dividend Payment date
During the year, your Company has declared and paid 1st interim dividend of `14 per share of `10 each on December 6,
2021 and 2nd interim dividend of `26 per share of `10 each on March 7, 2022.

(d) Listing on Stock Exchanges
The equity shares of the Company are listed on the following stock exchanges:
Name and Address Stock Code

BSE Ltd. 541154
P.J.Towers, Dalal Street, Fort,
Mumbai-400001
National Stock Exchange of India Ltd. (NSE) HAL
Exchange Plaza,C-1, G Block, Bandra-
Kurla Complex, Bandra(E),
Mumbai-400051
The annual listing fees for the year 2022-23, as applicable, has been paid to the stock exchanges.
(e) Custody/ Issuer charges to Depositories
Your Company has paid custody/ issuer charges for the year 2021-22 to the National Securities Depository Limited
(NSDL) and the Central Depository Services (India) Limited (CDSL).
(f) Registrar to an issue and share transfer agent
KFin Technologies Ltd.

(Formerly known as KFin Technologies Pvt Ltd.
& Karvy Fintech Pvt. Ltd.)
“Selenium Tower B”, Plot No.31 & 32,
Financial District, Nanakramguda,
Serilingampally Mandal, Hyderabad-500032
Telangana
Toll free number: 1800 309 4001
Email:einward.ris@kfintech.com
Website: https://www.kfintech.com and/ or https://ris.kfintech.com/
(g) Share transfer system
The shares of the Company are traded in dematerialised form. The Company has constituted a Share Transfer Committee
comprising of Director (Finance) & CFO, Director (Operations) and Company Secretary for approving requests related to
Dematerialization/ Rematerialization/ Transfer/ Transmission/ Splitting/ Consolidation/ Reissue of share certificates etc.
received from shareholders from time to time.
(h) Dematerialisation of shares and liquidity
As on March 31, 2022, 100 per cent of the equity shares of the Company are held in dematerialised form with NSDL
and CDSL. The details are as under:
Sl. No. Description No. of Shareholders No of Shares % of Equity

1 NSDL 95,948 32,91,92,319 98.45
2 CDSL 1,24,985 51,94,802 1.55
3. Physical 4 379 0
Total 2,20,937 33,43,87,500 100.00

(i) Performance in comparison to broad based indices
Share Price
BSE Sensex
(j) Commodity price risk or foreign exchange risk and hedging activities
Relevant information in this regard is given in Clause 33(a) of Note 49 to the Financial Statements provided in this Annual
Report.
(k) Stock market information
Company’s share price on BSE and NSE for each month during the year 2021-22 was as follows:
Month BSE Limited National Stock Exchange of India Ltd

High Low High Low
(` per share) (` per share) (` per share) (` per share)
April, 2021 1,051.30 925.00 1,052.00 929.00
May, 2021 1,046.00 942.50 1,046.00 942.00
June, 2021 1,089.20 995.00 1,089.00 991.20
July, 2021 1,165.00 1,010.80 1,025.50 1,010.00
August, 2021 1,456.15 1,057.90 1,457.00 1,059.10
September, 2021 1,485.45 1,320.00 1,486.95 1,316.00
October, 2021 1,568.45 1,232.20 1,566.00 1,233.90
November, 2021 1,455.55 1,235.35 1,456.00 1,235.15
December, 2021 1,327.60 1,181.25 1,328.00 1,181.20
January, 2022 1,470.85 1,210.00 1,471.00 1,212.05
February, 2022 1,475.00 1,248.65 1,474.80 1,240.00
March, 2022 1,495.70 1,304.55 1,496.30 1,304.55
(l) Registered / Corporate Office address and Plant Locations:

(i) Registered/ Corporate Office:
15/1, Cubbon Road, Bengaluru – 560 001, Karnataka
Phone: (080) 2232 0001, Fax: (080) 2232 0758
Email: cosec@hal-india.co.in
website: www.hal-india.co.in

(ii) Production Divisions
Aircraft Division, Airport Service Centre Sukhoi Engine Division,
Bengaluru, Bengaluru, Koraput, Odisha
Karnataka Karnataka
LCA Tejas Division Helicopter Division, Transport Aircraft Division,
Bengaluru, Bengaluru, Kanpur, Uttar Pradesh
Karnataka Karnataka
Engine Division, Helicopter MRO Division, Accessories Division,
Bengaluru, Bengaluru, Lucknow,
Karnataka Karnataka Uttar Pradesh
Overhaul Division, Aerospace Composites Division, Avionics Division,
Bengaluru, Bengaluru, Korwa, Uttar Pradesh
Karnataka Karnataka
Aerospace Division, Aircraft Manufacturing Division, Avionics Division, Hyderabad,
Bengaluru, Nashik, Telangana
Karnataka Maharashtra Strategic Electronic Factory,
Branch Factory of Avionics Division
Hyderabad, Kasargod, Kerala
Foundry and Forge Division, Aircraft Overhaul Division, Barrackpore Division,
Bengaluru, Nashik, Barrackpore, West Bengal
Karnataka Maharashtra
Industrial & Marine Gas Turbine Division, Engine Division,
Bengaluru, Koraput, Odisha
Karnataka
(iii) R & D Centres
Aircraft Research and Design Centre (ARDC), Aircraft Upgrade R&D Centre (AURDC),
Bengaluru, Nashik,
Karnataka Maharashtra
Rotary Wing Research and Design Centre (RWR&DC), Transport Aircraft R&D Centre, (TARDC)
Bengaluru, Kanpur, Uttar Pradesh
Karnataka
Aero Engine R&D Centre (AERDC), Aerospace Systems & Equipment R&D Centre (ASERDC),
Bengaluru, Lucknow, Uttar Pradesh
Karnataka
Mission & Combat Systems R&D Centre (MCSRDC), Strategic Electronics R&D Centre (SLRDC),
Bengaluru, Hyderabad,
Karnataka Telangana
Central Materials & Processes Laboratory & NDT Centre, Aerospace Systems & Equipment R&D Centre (ASERDC),
Bengaluru, Korwa
Karnataka Uttar Pradesh
19. Disclosure
(a) Material Contracts/ Related Party Transactions
The Company has not entered into any material financial or commercial transactions with the Directors or the
Management or their relatives or the companies including JVCs & Subsidiary and firms, etc., in which they are either
directly or through their relatives interested as Directors and/ or Partners. The Company has obtained declarations from
all concerned in this regard, which were noted by the Board. A comprehensive policy on Related Party Transactions (RPT)
has been approved by the Board as per the SEBI (LODR) Regulations and Companies Act.

The details of transactions with related parties are (d) Details of compliance with non-mandatory
disclosed in Clause 45A of Note No. 49 of the Notes requirements
to the Financial Statements for the year ended 31st
March, 2022.The Company has disclosed details The Company has not adopted any discretionary
of transactions with related parties as per the requirements provided under Part-E of Schedule II of
disclosure requirements of IndAS-24 on Related Party SEBI (LODR) Regulations.
disclosures. The policy on related party transactions
(e) Policy for determining material subsidiaries
of the Company may be accessed at https://hal-india.
co.in/Common/Uploads/DMS/Policy%20on%20 A policy for determining material subsidiaries has
Related%20Party%20Transactions.pdf been formulated with the approval of the Board of
Directors. The same has been hosted on the website
(b) Details of non-compliances on matters related
of the Company and can be accessed at the following
to capital markets, during the last three years
link: https://hal-india.co.in/Common/Uploads/DMS/
The composition of Board of Directors under Material_Subsidiary_Policy.pdf
Regulation 17(1) of the SEBI (LODR) Regulations,
As per the Policy, the Company does not have any
2015 does not comply the requirements of provisions
material subsidiary.
of the Regulations due to vacancy of 6 Nos. of
Independent Directors. Also, there was no properly (f) Credit Rating
constituted Audit Committee and Nomination &
Remuneration Committee due to vacancy of required During the year, Credit Analysis & Research Limited
number of Independent Directors on the Board of the have granted your Company a credit rating of CARE
Company, AAA/Stable/ CARE A1+ for Long Term and Short
Term Bank facilities including Non Fund Based Limits,
Notices have been received from Stock Exchanges amounting to ` 12,05,000 Lakh.
from the quarter ended December, 2020 onwards
for the Non-Compliance w.r.t. Composition of Further, ICRA Ltd. have granted your Company a
Board, Quorum for Board Meeting and Composition credit rating of [ICRA]AAA/ICRA A1+ and outlook
of various Committees due to non-appointment of revised to positive from Stable for Long Term –Fund
requisites number of Independent Directors on the based / Cash Credit amounting to ` 10,00,000 Lakh
Board of the Company. However, the Company has and [ICRA] A1+” for Short Term Non Fund Based
filed application seeking waiver of the fine levied Limits amounting to ` 2,05,000 Lakh.
by the Exchanges on the ground that appointment
of Independent Directors are being made by the Similarly, during the year, ICRA Ltd. and CARE Ratings
concerned Administrative Ministry of the Government Ltd. have granted a credit rating of (ICRA) A1+ and
of India. CARE A1+ respectively for Commercial Paper.
(c) Vigil Mechanism / Whistle-blower Policy (g)

None of Directors were debarred / disqualified from
being appointed or continuing as Director of the
In terms of Regulation 22 of SEBI (LODR) Regulations, Company during the year under review, and this has
the Company has established a vigil mechanism for been certified by the Company Secretary in practice.
directors and employees to report concerns about
unethical behaviour, actual or suspected fraud or (h)
The Company has duly complied with the DPE
violation of the Company’s Code of Conduct or ethics Guidelines on Corporate Governance and
policy. requirements specified in the Regulations 17 to 27
and clause (b) to (i) of Regulation 46 (2) of SEBI
The Company has provided ample opportunities to (LODR) Regulations except the following:
encourage the employees to become whistle blowers
(employees who voluntarily and confidentially want i. The Company has executive Chairman, the
to bring the unethical practices, actual or suspected strength of Independent Directors on the Board
fraudulent transactions in the organization to the should be atleast 50% of the total strength.
notice of the competent authority for the greater However, the same has been reduced to less than
interest of the organization and the Nation). It has 50%, on completion of tenure of 6 Independent
also ensured a very robust mechanism within the Directors.
same framework to protect whistle blowers from any ii. Due to vacancy of required number of
kind of harm. It is hereby affirmed that no personnel Independent Directors on the Board of the
has been denied access to the Chairman of Audit Company, there was no validly constituted Audit
Committee.

Committee and Nomination & Remuneration (l) Accounting Standards
Committee.
The Company is in compliance with all applicable
iii. As there was no validly constituted Audit Indian Accounting Standards (Ind AS).
Committee, Related Party Transactions were
directly approved in the Board Meetings without Ministry of Corporate Affairs vide notification
the presence of Independent Directors. no 1/2/2014-CL-V dated February 23, 2018 has
exempted those companies engaged in defence
(i) Details of the total fees for all services paid by the production to the extent of application of Ind AS 108
Company and its subsidiaries, on a consolidated basis on “Operating Segment”. Disclosure in this regard
to statutory auditors during the year are given below: has been made at Clause No 37 of Note No. 49 to
the Accounts.
(` In Lakh)
(m) Audited Financial Statements of Subsidiaries
Particulars Amount
The Audited Financial Statements of subsidiaries
Audit Fees 59
has been uploaded on the website of the Company
Tax Audit Fees 7
at http://www.hal-india.co.in/investors/Subsidiary
Other Services 87 Companies.
Reimbursement of expenses Nil
(n) Training of Directors
(j) Details of Unpaid Dividend as on March 31, 2022
The Company undertakes training / familiarisation
The details of the dividend which remains unpaid as programmes for its Directors.
on March 31, 2022, are given below:
(o) Right to Information
Financial Year in which dividend Amount
In order to address the provisions of the Right to
declared (In `)
Information Act, 2005 (RTI Act), First Appellate
2017-18 5,20,335.75 Authority, Central Public Information Officer and
2018-19 6,18,492.60 Assistant Public Information Officers responsible
for providing information sought by stakeholders
2019-20 7,70,136.00
have been appointed. In compliance to Government
2020-21 17,86,100.00 directives, your Company has successfully introduced
2021-22 (Interim) 16,48,924.00 the online processing of applications under the RTI
Act from September, 2014 onwards.
Total 53,43,988.35
During the year, 1426 Nos. of Request for Information
The dividend on equity shares which remain
(RFI) applications were received & 70 Nos. were
unclaimed/ unpaid for 7 years from the date of
carried forward from 2020-21 under the RTI Act-
transfer to Unclaimed Dividend Account shall be
2005, of which 1382 have been disposed off as of
transferred by the Company to Investor Education
March 31, 2022.
and Protection Fund (IEPF). The details of unclaimed/
unpaid dividend has been uploaded on the website During the year, 118 Nos. of 1st Stage appeals were
of the Company at www.hal-india.co.in/Investors/ received & 05 Nos. were carry forward from 2020-21,
Dividend. out of which 80 were disposed off as on March 31,
2022.
(k) Reconciliation of Share Capital
The Hon’ble Central Information Commission, New
Reconciliation of Share Capital audit was carried
Delhi, issued 12 Notices of hearings during the
out by the Secretarial Auditor of the Company on
year 2021-22 and the same were attended by HAL
quarterly basis. The report confirms that the total
Officials and were disposed off by the Hon’ble CIC.
issued / paid up capital is in agreement with the total
number of shares in physical and demat form. (p) Redressal of Public Grievances
Further, Certificate on the compliance of share In order to facilitate resolution of grievances in a
transfer formalities obtained from the Secretarial transparent and time bound manner, the Department
Auditor were also submitted to Stock Exchanges of Administrative Reforms & Public Grievances,
pursuant to Regulation 40(10) of the SEBI (LODR) Government of India has initiated a web-based
Regulations. monitoring system at www.pgportal.gov.in.

Your Company is committed to the resolution of public grievances in an efficient and time bound manner. General
Manager (HR)-CSR & FM Corporate Office has been designated as the Nodal Officer (Grievance) to facilitate the earliest
resolution of public grievances received through the online portal from the President’s Secretariat, Prime Minister’s Office
and the Ministry of Defence.
As per the directions of GoI, public grievances are resolved within two months period. If it is not possible to resolve the
same within two months period, an interim reply is to be given. Your Company is resolving the grievances within the said
time frame.
(q) Presidential Directives
All the Presidential Directives and Guidelines issued by the Government of India from time to time regarding reservations
for SCs, STs, OBCs, Persons with Disabilities, Ex-Servicemen and Economically Weaker Sections (EWS) are complied
with by the Company. Liaison Officers are appointed in all the Divisions / Offices located across the Country to ensure
effective implementation of the Government Directives. Officers who are entrusted with the responsibility of looking
after reservation in Recruitment and Promotion are provided with necessary training to enable them to update their
knowledge on the subject and carry out their job effectively.
The representation of SCs/STs/OBCs in HAL as on December 31, 2021 was as under:
Category of Employees Group – A Group – B Group – C Group – D Total

Scheduled Caste 1,396 2 3,114 1 4,513
Scheduled Tribe 482 2 1,364 0 1,848
Other Backward Classes 1,959 4 5,002 2 6,967
The representation of Persons with Disabilities and Ex-Servicemen as on December 31, 2021 was as under:
Category of Employees Group – A Group – B Group – C Group – D Total

Persons with Disabilities 147 1 458 0 606
Ex-Servicemen 86 - 1,215 0 1,301
(r) Items of expenditure debited in Books of Accounts, which are not for the purpose of business
No items of expenditure, other than those directly related to the business or incidental thereto, those spent towards the
welfare of the employees/ ex-employees or towards fulfilling the Corporate Social Responsibility of the Company, were
debited in the Books of Accounts.
(s) Expenses incurred, which are personal in nature and incurred for the Board of Directors and Top Management
Expenses incurred for the Board of Directors and Top Management are in the nature of salaries, allowances, perquisites,
benefits and sitting fees as permissible under the Rules of the Company. No other expenses, which are personal in
nature, were incurred for the Board of Directors and Top Management during the year 2021-22.
(t) Integrity Pact
The Company has adopted and provided for signing of Integrity Pact (IP) and accordingly a clause has been introduced in
the Purchase Manual. Pre-contract IP is a binding agreement between the Company and bidders for a specific contract
in which the parties promise that it will not resort to any corrupt practices in any aspect or stage of the contract.
The IP has strengthened the established systems and procedures by creating trust and has full support of the Central
Vigilance Commission.
For and on behalf of Board of Directors

Place : Bengaluru (R. Madhavan)

Date : July 15, 2022 Chairman and Managing Director

Declaration of Compliance with the Code of Conduct
Pursuant to Regulation 26(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines
on Corporate Governance for Central Public Sector Enterprises, all Board Members and Senior Management Personnel of the
Company have affirmed compliance with the Code of Business Conduct & Ethics for Board Members & Senior Management of
Hindustan Aeronautics Limited, for the year ended March 31, 2022.
Place: Bengaluru (R. Madhavan)

Date: May 27, 2022 Chairman and Managing Director
Ceo/Cfo Certification under Regulation 17(8) of the Sebi (Lodr)

Regulations, 2015 and Dpe Guideline on Corporate Governance.
To,
The Board of Directors

1. We have reviewed financial statements and the cash flow statement of Hindustan Aeronautics Limited for the twelve months
period ended March 31, 2022 and that to the best of 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.
2. There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are
fraudulent, illegal or violative of the company’s code of conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting. We have come across one
reportable deficiencies in the design or operation of such internal controls, and necessary corrective action has already been
initiated.
4. We have indicated to the auditors:
i. that there are no significant changes in internal control over financial reporting during the period;
ii. that there are no significant changes in accounting policies during the period.
iii. that there are no instances of significant fraud of which we have become aware.

(C B Ananthakrishnan) (R. Madhavan)
Director (Finance) & CFO Chairman and Managing Director
DIN:06761339DIN:08209860

Certificate on Corporate Governance
To, b. Only two Audit Committee meetings held during the
The Members of Hindustan Aeronautics Limited financial year under review;
Bengaluru
c. Gap between the meetings held on 26/02/2021 and
We have examined the compliance of Corporate Governance 28/06/2021, was 121 days;
by Hindustan Aeronautics Limited, as stipulated in Regulations
17 to 27 and Clauses (b) to (i) of Regulation 46(2) and Para C d. After vacation of the post of Independent Director(s)
and D of Schedule V of SEBI (Listing Obligations and Disclosure by Rear Admiral K C Shekar (Retd.) and Dr. S Malla
Requirements) Regulations 2015 and Guidelines on Corporate Reddy, w.e.f. 24/07/2021, there was no properly
Governance for Central Public Sector Enterprises issued by the constituted Committee.
Department of Public Enterprises, for the financial year ended
March 31, 2022. (iii) Regulation 19(1), (2), (2)(a) & (3)(a) - Provisions
pertaining to Nomination and Remuneration
The Compliance of conditions of Corporate Governance is committee:
the responsibility of the Management. Our examination was
limited to the review of procedures and implementation After vacation of the post of Independent Director(s) by
thereof adopted by the Company for ensuring compliance of Rear Admiral K C Shekar (Retd.) and Dr. S Malla Reddy,
the conditions of corporate governance as stipulated in the w.e.f. 24/07/2021, there was no properly constituted
said regulations. Committee.
On the basis of our findings from the examination of the (iv) Regulation 20 (2), (2A) - Provisions pertaining to
records produced and information furnished to us, in our Stakeholders Relationship Committee:
opinion, the Company has complied with the conditions of
After vacation of the post of Independent Director(s) by Dr.
Corporate Governance as stipulated in SEBI (Listing Obligations
S Malla Reddy, w.e.f. 24/07/2021, there was no properly
and Disclosure Requirements) Regulations 2015 and Guidelines
constituted Committee. However, the Committee was
on Corporate Governance for Central Public Sector Enterprises
reconstituted on 10th February, 2022 on appointment of
issued by the Department of Public Enterprises, for the financial
Dr. Divya Gupta, as Woman Independent Director in the
year ended March 31, 2022 except to the extent of following:
Company.
(i) Regulations 17 (1), (1) (a), (b), (2)(a), 2(10) - provisions
pertaining to Board Composition (v) Regulation 21 (2), (3), (3A), (3B), (3C) - Provisions
pertaining to Risk Management Committee:
a. Half of the Board is not Independent
a. After vacation of the post of Independent Director(s)
b. Half of the board is not Non-executive by Rear Admiral K C Shekar (Retd.) and Dr. S Malla
c. No Woman Independent Director on the Board till Reddy, w.e.f. 24/07/2021, there was no properly
Ms. Divya Gupta was appointed on 28th December constituted Committee. However, the Committee was
2021 reconstituted on 10th February, 2022 on appointment
of Dr. Divya Gupta, as Woman Independent Director
d. The required quorum was not present in the Board in the Company.
meetings conducted after 23rd July 2021 till 27th
December 2021, due to absence of Independent b. During the year under review, Risk management
Director(s) in the Company. committee has met only once.
After completion of tenure of Independent Directors on (vi) Regulation 23 (2) - Provisions pertaining to related
23rd July, 2021 and till the appointment of Dr. Divya Gupta, party transactions:
Woman Independent Director on 28th December 2021,
the Board Meetings were held without the presence of Related Party Transactions were directly approved in the
independent director as required under SEBI regulations; Board Meetings without the presence of independent
and hence we are unable to comment on the validity director as required under SEBI regulations.
of the matters/transactions approved in the said Board
Meetings. (vii) Non constitution of CSR Committee as per Section
135 of the Companies Act:
(ii) Regulation 18(1), (1)(a), (b),(d), (2) (a) - Provisions
pertaining to Audit Committee: After vacation of the post of Independent Director(s) by
Rear Admiral K C Shekar (Retd.), w.e.f. 24/07/2021, there
a. There was no Audit Committee in the Company; was no properly constituted Committee. However, the

Committee was reconstituted on 10th February, 2022 on 2021, 24th May, 2021, 23rd August, 2021, 23rd November,
appointment of Dr. Divya Gupta, as Woman Independent 2021 & 22nd February, 2022 respectively under Sl. No. 3(a) of
Director in the Company. the Policy of exemption of fines issued by SEBI. However, in
response, NSE vide email dated 8th December, 2021 and 4th
(viii) Bombay Stock Exchange (BSE) and National Stock May, 2022, advised the Company to file such applications only
Exchange (NSE) have imposed penalties on the company after resuming the compliances in the Company.
of Rs. 28.85 Lakhs each, for non-compliances under the
above regulations. It was further explained that, since the non-compliance is
arising out of inability of the Company to comply on account
Management Response of pending approval from the Government / Ministry regarding
appointment at Board level, the Company is confident to get
On the above referred non-compliances, it was explained by
waiver of fine under Sl. No. 3 of the Policy for exemption of
the Company that, on completion of tenure by all the seven fines levied as per the provisions of the SEBI SOP Circular.
Independent Directors by 23rd July, 2021, the Company
did not have any Independent Director on its Board till 27th With regard to validity of the matters / transactions approved
December, 2021. Since, the appointment of Independent in the board meetings conducted without presence of atleast
Directors in the Government Companies has to be made by one independent director, it was explained that, since the
the concerned Administrative Department of the Government requirement of quorum has been complied by the Company
of India, multiple requests/ reminders were made/sent by the as per the provisions of the Companies Act, 2013, which does
Company to Ministry of Defence (MoD) for filling the vacant not mandate the presence of independent director in the
posts of Independent Directors in the Company, within the board meeting for the purpose of counting quorum, no notice
stipulated time, referring penal provisions both under the was received from BSE and NSE on validity of the transactions
Companies Act, 2013 and SEBI Regulations. However, even approved in such board meetings except imposing fine for the
after continuous follow up on the matter with MoD and DPE, said non-compliance.
during the year under review, only one Woman Independent
Director was appointed in the Company by the Government on With regard to conduct of Audit Committee meeting beyond
28th December, 2021. After her appointment, requirement of the prescribed gap of 120 days, it was explained that, as
presence of atleast one independent director in the meetings the working of the Company was severely affected due to
of the Board as part of the quorum was regularized. Apart from long Covid-19 Pandemic lockdown, the meeting could be
that, composition of Stakeholders’ Relationship Committee, conducted with a marginal delay of one day keeping in view
the extension granted by MCA vide its circular date 3rd May,
Risk Management Committee and CSR Committee were
2021, for holding such meetings from 120 days to 180 days.
also regularized by reconstitution of the Committees on 10th
The matter was suitably explained to the Stock Exchanges.
February, 2022.
We further state that such compliance is neither an assurance
It was further explained by the Company that, later, on
as to the future viability of the Company nor the efficiency or
appointment of Shri Deepak Abasaheb Shinde as Independent
effectiveness with which the management has conducted the
Director by the Government on 28th April, 2022, Company
affairs of the Company.
has regularized the composition of Audit Committee and
Nomination & Remuneration Committee w.e.f. 4th May,
2022. However, composition of the Board with respect to
independent directors is yet to be complied by the Company
due to non-filling of five independent director posts in the
Company by the Government.
Dakshayani P
It was further explained that, since the appointment of
Partner
Independent Directors in the Government Companies has to DPSP and Associates
be made by the concerned Administrative Department of the Company Secretaries
Government of India, application for waiver of fines on such FCS No.: 8993
matter where Company has no control over such appointments, Place: Bangalore C P No.: 8411
has already been submitted to NSE and/or BSE on 17th February, Date: 10/05/2022 UDIN: F008993D000298271

Business Responsibility & Sustainability Report
SECTION A: GENERAL DISCLOSURES
I. Details of the Listed Entity:
1. Corporate Identity Number (CIN) of the Listed Entity L35301KA1963GOI001622

2. Name of the Listed Entity Hindustan Aeronautics Limited
3. Year of incorporation 16/08/1963
4. Registered office address 15/1, Cubbon Road,
Bengaluru - 560001
5. Corporate address 15/1, Cubbon Road,
Bengaluru - 560001
6. E-mail cosec@hal-india.co.in
7. Telephone 080-22320001
8. Website www.hal-india.co.in
9. Financial year for which reporting is being done 2021-22
10. Name of the Stock Exchange(s) where shares are listed 1. BSE Ltd (BSE)
2. National Stock Exchange of India Ltd (NSE)
11. Paid-up Capital Rs.334,38,75,000/-
12. Name and contact details (telephone, email address) Shri G V Sesha Reddy
of the person who may be contacted in case of any Executive Director (Company Secretary)
queries on the BRSR report Hindustan Aeronautics Limited
15/1, Cubbon Road,
Bengaluru – 560 001. Karnataka
Phone: (080) 2232 0001,
Email: cosec@hal-india.co.in
13. Reporting boundary - Are the disclosures under this Standalone Basis
report made on a standalone basis (i.e. only for the
entity) or on a consolidated basis (i.e. for the entity and
all the entities which form a part of its consolidated
financial statements, taken together).
II. Products/services
14. Details of business activities (accounting for 90% of the turnover):
S. Description of Main Activity Description of Business Activity % of Turnover of the entity

No.
1. Manufacturing Manufacture of Aircraft, Helicopters 31
and its Engines,
2. Service Overhaul of Aircraft, Helicopters and 64
its Engines

15. Products/ Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. Product/Service NIC Code % of total Turnover contributed

No.
1 Manufacture of Aircraft and Helicopters 30301,30302 & 30305 31
2 Repair and Maintenance of Aircraft, 3315 64
Helicopters and Engines
III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total

National 30 5 35
(20 Production & 10 R&D)
International 0 2 2
17. Markets served by the entity:
a. Number of locations
Locations Number
National (No. of States) Our product reach cover the entire Indian Territory
through our Defence Forces.
International (No. of Countries) Around 20 Countries
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Approx. 1% of the total turnover
c. A brief on types of customers
HAL supplies to both national and international customers catering to the Defence as well as Civil operations.
However majority of the company’s supplies are for the Indian Defence Services namely Indian Air Force (IAF), Indian
Navy (IN), Indian Army (IA) and Indian Coast Guard (ICG).
IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S. Particulars Total Male Female

No. (A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 24375 22218 91.15 2157 8.85
2. Other than Permanent (E) 1037 990 95.47 47 4.53
3. Total employees (D + E) 25412 23208 91.32 2204 8.67
WORKERS
4. Permanent (F) 16695 15309 91.70 1386 8.30
5. Other than Permanent (G) 934 900 96.36 34 3.64
6. Total workers (F + G) 17629 16209 91.94 1420 8.05

b. Differently abled Employees and workers:
S. Particulars Total Male Female

No (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 585 534 91.28 51 8.72
2. Other than Permanent (E) 15 14 93.33 1 6.67
3. Total differently abled 600 548 91.33 52 8.67
employees (D + E)
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 437 395 90.39 42 9.61
5. Other than permanent (G) 15 14 93.33 1 6.67
6. Total differently abled 452 409 90.49 43 9.51
workers (F + G)
19. Participation / Inclusion / Representation of women
Total No. and percentage of Females

(A) No. (B) % (B / A)
Board of Directors 7 2 29
Key Management Personnel 5 Nil N.A.
20. Turnover rate for permanent employees and workers
(Disclose trends for the past 3 years)
FY 2021-22 FY 2020-21 FY 2019-20

Male Female Total Male Female Total Male Female Total
Permanent Employees 0.18 0.06 0.24 0.13 0.09 0.22 0.22 0.09 0.31
Permanent Workers 0.01 0.04 0.05 0.04 0.06 0.1 0.05 0.08 0.13
V. Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
S. Name of the holding / subsidiary / associate Indicate % of Does the entity

No. companies / joint ventures (A) whether shares indicated at column
holding/ held by A, participate in the
Subsidiary/ listed Business Responsibility
Associate/ entity initiatives of the listed
Joint Venture entity? (Yes/No)
1 BAeHAL Software Ltd. Joint Venture 49 NO
2 Indo Russian Aviation Ltd. Joint Venture 48 NO
3 Safran HAL Aircraft Engines Pvt. Ltd. Joint Venture 50 NO
4 Samtel HAL Display System Ltd. Joint Venture 40 NO
5 HAL-Edgewood Technologies Pvt. Ltd. Joint Venture 50 NO
6 HALBIT Avionics Pvt. Ltd. Joint Venture 50 NO
7 Infotech HAL Ltd. Joint Venture 50 NO
8 HATSOFF Helicopter Training Pvt. Ltd. Joint Venture 50 NO
9 TATA-HAL Technologies Ltd. Joint Venture 50 NO
10 International Aerospace Manufacturing Pvt. Ltd. Joint Venture 50 NO

S. Name of the holding / subsidiary / associate Indicate % of Does the entity
No. companies / joint ventures (A) whether shares indicated at column
holding/ held by A, participate in the
Subsidiary/ listed Business Responsibility
Associate/ entity initiatives of the listed
Joint Venture entity? (Yes/No)
11 Multi-Role Transport Aircraft Ltd. Joint Venture 50 NO
12 Aerospace & Aviation Sector Skill Council (AASSC) Joint Venture 50 NO
13 Helicopter Engines MRO Private Ltd. Joint Venture 50 NO
14 Defence Innovation Organisation Joint Venture 50 NO
15 Indo Russian Helicopters Limited Subsidiary 50.5 NO
16 Naini Aerospace Limited Subsidiary 100 NO
VI. CSR Details
22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) : YES
(ii) Turnover (in `) 24,36,166 Lakh
(iii) Net worth (in `) 19,26,400 Lakh
VII. Transparency and Disclosures Compliances
23. Complaints / Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct:
Stakeholder Grievance FY 2021-22 FY 2020-21

group from Redressal
whom Mechanism in
complaint is Place (Yes/No)
received
(If Yes, then Number of Number of Remarks Number of Number of Remarks
provide web-link complaints complaints complaints complaints
for grievance filed pending filed pending
redress policy) during the resolution during the resolution at
year at close of year close of the
the year year
Communities Centralised 221 Nil Nil 162 Nil Nil
Public Grievance
Redress and
Monitoring System
(CPGRAMS) under
the Ministry of
Personnel, Public
Grievances &
Pensions, the
Department of
Administrative
Reforms & Public
Grievances
Investors NA NIL NIL -- NIL NIL --
(other than
shareholders)
Shareholders Yes* 195 0 -- 237 20 --

Employees Yes (Service related Nil Nil - Nil Nil -
and workers matters)
Customers Yes** 142# - - 126# - -
Value Chain Yes 17 NIL - 17 NIL -
Partners
Other (please -- -- -- -- -- -- --
specify)
* The Company has Stakeholder Relationship Committee to redress the complaints received from the shareholders as
per SEBI Listing Regulations. Hence, there is no web link
**HAL deals with Defence Customers and therefore all the communication are through confidential mode as per the
requirement of Customer. So there is no web link.
# The issues have been deliberated in structured meeting with Customers and have been attended.
24. Overview of the entity’s material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format
S. Material issue Indicate Rationale for identifying In case of risk, Financial

No. identified whether the risk / opportunity approach to adapt or implications
risk or mitigate of the risk or
opportunity opportunity
(R/O) (Indicate
positive or
negative
implications)
1 Environmental Risk Water scarcity can impair the Employee education Negative
Footprint -Water company’s operations and on saving water, more
management disrupt business. efficient use of water in
campuses, Rain water
harvesting, recycling of
waste water.
2 Environmental Risk Inadvertent non-compliance Reduction in waste Negative
Footprint -Waste to existing and emerging generation, maximization
management regulations around recycling of recycling and reuse.
can result in economic penalties
and reputation damage.
3 Social Risk The business must be rooted Fostering local Negative
Responsibility – in community and be aligned communities,
Alignment with with the community’s larger job creation, skill
Local interests. Any adversarial development, supporting
Communities relationship can hurt the local relief efforts where
company’s ability to create required in times of crisis
longer term value. and paying taxes
Opportunity As per CSR Policy, the Positive
Company undertakes all
CSR activities, within 50 Km
radius from the Divisions /
Complexes where it operates.

S. Material issue Indicate Rationale for identifying In case of risk, Financial
No. identified whether the risk / opportunity approach to adapt or implications
risk or mitigate of the risk or
opportunity opportunity
(R/O) (Indicate
positive or
negative
implications)
4 Corporate Risk HAL being a CPSE, the Negative
Governance appointment of Directors are
– Board made by Govt. of India and
composition the Company has no control
over filling up of the vacancy
within the stipulated time
frame specified under the Act/
Rules / Regulations, to comply
the same.
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.
Disclosure Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
Policy and management processes
1. a. Whether your entity’s policy / policies cover each principle and its Yes Yes Yes Yes Yes Yes Yes Yes Yes
core elements of the NGRBCs. (Yes/No)
b. Has the policy been approved by the Board? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
c. Web Link of the Policies, if available Policies of the Company are available at www.
hal-india.co.in/ Investors/ Codes and Policies
2. Whether the entity has translated the policy into procedures. (Yes / No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
3. Do the enlisted policies extend to your value chain partners? (Yes / No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
4. Name of the national and international codes / certifications / labels / • HAL follows SEBI regulations and
standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Guidelines on Corporate Governance for
Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your CPSEs issued by DPE ensuring ethical,
entity and mapped to each principle. transparent and accountable business
conduct among others.
• HAL Divisions are certified to ISO

14001-2015 Environment Management
System and ISO 45001-2018 OHSMS
(Occupational Health and Safety
Monitoring System) and follows required
operational standards accordingly.
• HAL products are CEMILAC, DGAQA,

DGCA certified as applicable ensuring safe
products to our customers.

Disclosure Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
• HAL is a member of industrial bodies like
FICCI, CII, SCOPE, ASSOCHAM etc and
hence works closely with the industry
community.
• HAL believes in inclusive growth and

has been instrumental in developing an
aerospace and defence manufacturing
ecosystem in the country through engaging
with Indian Private industries including
MSMEs, procurement through GeM
portal, making available the opportunities
for indigenization and Make in India
through Srijan portal, and other initiatives
for supporting Indian Industry.
• Customer satisfaction is part of our laid

down value system wherein we become
partners in fulfilling our customer
mission. We constantly engage with our
customers. For instance, in case of our
major customers, Defence Services, we
have customer representative positioned
at forward bases, fleet recovery meetings,
AFCC, JPFG, PRM etc. wherein we discuss
areas of improvements, issue resolution etc
and take necessary actions.
5. Specific commitments, goals and targets set by the entity with defined Continuous upgrade and timely renewal of
timelines, if any. certifications are ensured wherever applicable.
6. Performance of the entity against the specific commitments, goals and Not applicable as we ensure timely and
targets along-with reasons in case the same are not met. continuous upgrade of systems and
certifications wherever applicable
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements (listed entity has flexibility regarding the placement of this disclosure)
The Company being a Defense Aerospace Company, its products are tested at various level with many flights trials causing
burning of heavy aviation fuel, which has impact on environment.
We aim to create a sustainable future through environment conservation activities for the community. All emissions and
waste generated is monitored as prescribed by the Pollution Control Boards. The Company is also actively promoting socio-
economic rejuvenation through targeted CSR activities such as healthcare including combating against COVID-19, Skill
Development for Employment Enhancement & Self Employment, Education, Sanitation, Drinking Water, River Rejuvenation,
Environment Sustainability and Sports Development etc.
HAL being a CPSE, the appointment of Directors are made by Govt. of India and the Company has no control over filling
up of the vacancy within the stipulated time frame specified under the Act / Rules / Regulations, to comply the same.
8. Details of the highest authority responsible for implementation and Director (Human Resources)
oversight of the Business Responsibility policy(ies).
9. Does the entity have a specified Committee of the Board/ Director Yes, Management Committee (MC)
responsible for decision making on sustainability related issues? (Yes /
No). If yes, provide details.

10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was Frequency
undertaken by Director / Committee (Annually/ Half yearly/ Quarterly/
of the Board / Any other Committee Any other – please specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against above policies and Director (HR) As and when required.
follow up action
Compliance with statutory requirements Complied except with respect to As and when required
of relevance to the principles, and composition of the Board of Directors
rectification of any non-compliances & constitution of its Committee under
SEBI (LODR) Regulations, due to non-
appointment of Independent Directors.
Since, the Company is a CPSE, the
appointment of directors has to be
made by the concerned Administrative
Ministry. Hence, the matter has been
referred to the MoD for filling up the
post and the same is pending with MoD/
DPE.
11. Has the entity carried out independent assessment / P P P P P P P P P

evaluation of the working of its policies by an external 1 2 3 4 5 6 7 8 9
agency? (Yes/No). If yes, provide name of the agency.
No
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
The entity does not consider the Principles material to its business (Yes/No)
The entity is not at a stage where it is in a position to formulate and implement the
policies on specified principles (Yes/No) As the Company has formulated policies
The entity does not have the financial or/human and technical resources available for based on all the nine Principles, hence,
the task (Yes/No) Not Applicable.
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)
SECTION C: PRINCIPLE- WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key
processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are
expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed
by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1:
BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH INTEGRITY, AND IN A MANNER THAT IS ETHICAL,
TRANSPARENT AND ACCOUNTABLE.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Segment Total number Topics / principles covered under the %age of persons in
of training training and its impact respective category
and awareness covered by the
programmes held awareness programmes
Board of Directors 1 Orientation Programme for Capacity 14%
building of newly appointed Non Official
(Independent) Director of CPSE’s in
association with DPE & ICAI
Key Managerial Personnel Nil -- --
Employees other than BoD and 132 (i) Training / Awareness Programs 28.6%
KMPs pertaining to wellness of the
employees, CDA, safety, environment
& sustainability, etc.
Workers (ii) These Training / Awareness Programs 29.5%
will enable the employees to
acquire the knowledge / skills for
enhancement of their capabilities.
Note: % of Persons (Employees and Workers) include those who have attended the training and awareness programs more than once.
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by
the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial
year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in
Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the
entity’s website):
Monetary
NGRBC Name of the Amount (In Brief of the Has an
Principle regulatory / enforcement INR) Case appeal been
agencies/judicial institutions preferred?
(Yes / No)
Penalty/ Fine NIL - - -
Settlement NIL - - -
Compounding fee NIL - - -
Non-Monetary
NGRBC Name of the Brief of the Has an
Principle regulatory/ enforcement Case appeal been preferred? (Yes/
agencies/judicial institutions No)
Imprisonment NIL - -
Punishment NIL - -

3. Of the instances disclosed in Question 2 above, details of the Appeal / Revision preferred in cases where monetary
or non-monetary action has been appealed.
Case Details Name of the regulatory / enforcement agencies/

judicial institutions
Not Applicable Not Applicable
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available,
provide a web-link to the policy.
Yes, The Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting
highest standards of professionalism, honesty, integrity and ethical behaviour. Towards this end, the Company has adopted
the Code of Conduct, which lays down the principles and standards that should govern the actions of the Company and its
employees. Accordingly, Whistle Blower Policy has been formulated in the Company with a view to provide a mechanism
for employees of the Company for any potential violation of the code, to approach the Chairman of the Audit Committee /
Director (HR) / Head of Systems Audit of the Company.
Web link of the policy is https://hal-india.co.in/Common/Uploads/DMS/Whistle%20Blower%20Policy.pdf
5. Number of Directors / KMPs / employees / workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery / corruption:
FY 2021-22 FY 2020-21
Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil
6. Details of complaints with regard to conflict of interest:
FY 2021-22 FY 2020-21
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict of Nil Nil
Interest of the Directors
Number of complaints received in relation to issues of Conflict of Nil Nil
Interest of the KMPs
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators / law enforcement agencies / judicial institutions, on cases of corruption and conflicts of interest.
Not Applicable as there is no fines / penalties / action taken by any regulators/ law enforcement authority during the financial
year.

PRINCIPLE 2 :
BUSINESSES SHOULD PROVIDE GOODS AND SERVICES IN A MANNER THAT IS SUSTAINABLE AND SAFE
1. Percentage of R&D and Capital Expenditure (CAPEX) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the
entity, respectively.
FY 2021-22 FY 2020-21 Details of improvements in environmental and social

impacts
R&D Nil `Nil • No specific input with respect to products as HAL products
are for use in strategic/national security applications and are
developed and certified according to customer specifications.
CAPEX 0.72 % 0.07 % • Improvement in processes are taken care in-line with ISO
(` 1069 Lakhs) (` 88.84 Lakhs) 14001 EMS standards and HAL Divisions are certified
accordingly.
• HAL has made investments towards installation of energy
efficient Temperature & Humidity Chamber and Thermal
Shock Chamber with improved GHG(Green House Gas)
value , Sand Washing Facility to reclaim sand from burnt
sand, Effluent Treatment plant with Zero Liquid Discharge
(ZLD) System, Fume Extractors, chillers / Air Conditioners,
LED lights etc, which are helping in conservation of natural
resources and environment.
• HAL has also adopted Eco-Friendly Painting Process as per
global standard (DEF STAN 80-161/2).
• HAL disposes used oil, e-waste and Hazardous waste such as
ETP Sludge, Paint Sludge, Waste water soluble coolant, Used
Grease, Oil soaked cotton waste through KSPCB authorised
agencies, thus helping in conservation of environment.
2. a. Does the entity have procedures in place for sustainable sourcing?

No.
b. If yes, what percentage of inputs were sourced sustainably?
61%. Though such stipulations are not there in our procurement as of now, many of our suppliers are already adopting
such standard. Hence the above number.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of
life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
The main products of the company are Aircraft, Helicopters, Engines and other accessories for use in strategic/national
security applications. Once the products are sold they would not come back to the company. Hence company is not in a
position to reclaim the products. However, HAL has a defined process in place for reuse, recycle and safe end-of-life disposal
for the products used in its operations.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether
the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution
Control Boards? If not, provide steps taken to address the same.
Not Applicable
(The main products of the Company are Aircraft, Helicopters, Engines and other accessories for use in strategic/national
security applications. Once the products are sold they would not come back to the Company.)

PRINCIPLE 3 :
BUSINESSES SHOULD RESPECT AND PROMOTE THE WELL-BEING OF ALL EMPLOYEES, INCLUDING THOSE IN THEIR
VALUE CHAINS
1. a. Details of measures for the well-being of employees:
Category % of Employees covered by

Total Health Insurance Accident Maternity Paternity Day Care
(A) Insurance # Benefits $ Benefits $ Facilities $
No. (B) % No. (C) % (C/A) No. % No. (E) % No. (F) %
(B/A) (D) (D/A) (E/A) (F/A)
Permanent Employees
Male 22218 21829 98.25% NA - 698 3.14% NA -
Female 2157 Ref Note. (i) 1991 92.30% 87 4.03% NA - 21 0.97%
Total 24375 23820 97.72% 87 4.03% 698 3.14% 21 0.97%
Other than Permanent Employees
Male 990 808 81.62% NA - 0 0% NA -
Female 47 Ref. Note (ii) 26 55.32% 0 - NA - Nil 0%
Total 1037 834 80.42% 0 0% 0 0% Nil 0%
b. Details of measures for the well-being of workers:
Category % of Workers covered by

Total Health Insurance Accident Maternity Paternity Day Care
(A) Insurance # Benefits $ Benefits $ Facilities $
No. (B) % No. (C) % (C/A) No. % No. (E) % No. (F) %
(B/A) (D) (D/A) (E/A) (F/A)
Permanent Workers
Male 15309 15237 99.53% NA - 523 3.42% NA -
Female 1386 Ref. Note (i) 1315 94.88% 65 4.69% NA - 16 1.15%
Total 16695 16552 99.14% 65 4.69% 523 3.42% 16 1.15%
Other than Permanent Workers
Male 900 808 89.78% NA - 0 0% NA -
Female 34 Ref. Note (ii) 26 76.47% 0 0% NA - Nil 0%
Total 934 834 89.29% 0 0% 0 0% Nil 0%
Notes (for 1 (a) & (b):

(i) Medical needs of permanent employees / workers have been taken care by Company Industrial Health Centers (IHC) set up in the Divisions
/ Offices. In case of specialized treatment, employees / workers are referred to empaneled Hospitals. Since medical needs of the permanent
employees / workers have been taken care by the Company, no separate Health Insurance is taken.
(ii) In respect of other than permanent workers (a) Management Trainees / Design Trainees : Medical facilities extended as at (i) above; (b) Tenure
based : a lumpsum amount is paid every month to take care of the Medical needs and emergency care at Industrial Health Centers. Hence,
no separate medical insurance is taken.
#
Purely voluntary basis and premium is borne by the employees.
$
Nos. actually availed the facilities during the year have been indicated. Day Care facility was closed during the year at most of the Divisions on
account of Covid 19 pandemic. Hence, the number availed is comparatively less.

2. Details of retirement benefits, for Current FY and Previous Financial Year.
Benefits FY 2021-22 FY 2020-21

No. of No. of Deducted and No. of No.of Deducted and
employees workers deposited employees workers deposited
covered as a covered as a with the covered as a covered as a with the
% of total % of total authority % of total % of total authority
employees workers (Y/N/N.A.) employees workers (Y/N/N.A.)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI Nil Nil NA Nil Nil NA
Others – please specify - - - - - -
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the
Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so,
provide a web-link to the policy.
Yes, the web links to the policy is https://hal-india.co.in/Common/Uploads/DMS/Equal%20Opportunity%20Policy%20

for%20PWDs.pdf
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Gender Permanent employees Permanent workers

Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100% 100% 100%
Female 100% 100% 100% 100%
Total 100% 100% 100% 100%
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Yes / No
(If Yes, then give details of the mechanism in brief)
Permanent Workers / Yes.
Other than Permanent Workers
Three Stage Grievance Procedure i.r. of Workmen exists in the Company.
Upon exhausting all the 3 Stages, option is available to the Workmen for making
petition to the General Manager if not satisfied with the decision of the Grievance
Redressal Committee.
Thereafter, if not satisfied with the decision of the General Manager, option for
preferring Appeal to the CEO/Director concerned through the Recognized Union
also exists wherein the decision of the CEO/Director will be final.

Employees / Yes. In addition to the Grievance Procedure i.r.of Workmen as above, there also
Other than Permanent Employees exists Grievance Procedure i.r.of Officers (upto Gr. VI) as indicated below:
(i) Representing to the Dept. Head in the 1st Stage.
(ii) Thereafter, representing to the Grievance Redressal Committee, wherein,

based on the recommendations of the Committee, General Manager would
communicate his decision.
(iii) In exceptional cases, if not satisfied with the decision of the General Manager,
the Officer concerned may Appeal to the CEO / Director concerned, whose
decision shall be final and binding on aggrieved Officer.
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
Category FY 2021-22 FY 2020-21

Total No. of Employees % (B/A) Total No. of Employees % (D/C)
Employees / / Workers Employees / / Workers
Workers in respective Workers in respective
respective category, who respective category, who
category are part of category are part of
(A) Association(s) (C) Association(s)
(B) (D)
Total Permanent Employees 24375 23681 97.15% 25435 24686 97.06%
Male 22218 21583 97.14% 23225 22577 97.21%
Female 2157 2098 97.26% 2210 2109 95.43%
Total Permanent Workers 16695 16128 96.60% 17472 16934 96.92%
Male 15309 14779 96.54% 16061 15585 97.04%
Female 1386 1349 97.33% 1411 1349 95.61%
8. Details of training given to employees and workers:

Total On Health & On Skill Total On Health & On Skill
(A) Safety Measures upgradation (D) Safety Measures upgradation
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 22218 5007 22.54% 10969 49.37% 23225 1375 5.68% 7840 33.76%
Female 2157 375 17.39% 1542 71.49% 2210 313 13.95% 863 39.05%
Total 24375 5382 22.08% 12511 51.33% 25435 1688 6.39% 8703 34.22%
Workers
Male 15309 3466 22.64% 3165 20.67% 16061 1577 9.27% 5572 34.69%
Female 1386 301 21.72% 558 40.26% 1411 272 18.82% 537 38.06%
Total 16695 3767 22.56% 3723 22.30% 17472 1849 10.01% 6109 34.96%

9. Details of performance and career development reviews of employees and worker:

Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 6861 5490 80.02 8049 5411 67.23
Female 760 614 80.79 890 615 69.10
Total 7621 6104 80.09 8939 6026 67.41
Workers
Male 15309 Not Applicable 16061 Not Applicable
Female 1386 Not Applicable 1411 Not Applicable
Total 16695 17472
Notes:
i. The Total Number indicated in column (A) of part-I above (i.e. Employees) refers to PARs (including Probationary, Annual & Split Reports)
raised during the Year. With regard to Probationary period, 2 PARs, viz. I & II Probationary PAR are raised in respect of Officers who are
on Probation.
ii. The Company’s Policy provides for conduct of Performance Review Board for moderation of Annual PARs. The numbers indicated
in column (B) refers to the total number of Annual PARs raised and the Numbers indicated in the Percentage column reflects the
percentage against the total number of PARs (i.e. Annual, Probationary & Split PARs together) raised.
iii. Training needs captured in the PARs in respect of Grade-VII & above Officers are forwarded to HMA by Corporate Office. Similarly,
the training needs indicated in the PARs of Grade-VI & below Officers are forwarded by the respective Divisions / Offices to HMA, for
designing suitable Training courses.
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/
No). If yes, the coverage such system?
Yes. Implementation of Occupation Health & Safety management System is under progress in the Divisions of HAL,
wherein the following aspects are covered in the System:
(i) EHS Policy;
(ii) Documents like HS Manuals, Operational Control Procedures (OCP), Work Instructions, Emergency Preparedness
Plan, etc.;
(iii) Internal Auditor Training and Audits;
(iv) Management Review Meeting;
(v) LCA Tejas, Aircraft & Foundry & Forge Divisions have already implemented the ISO 45001:2018
b. What are the process used to identify Work-related Hazards & Assess Risks on a routine and non-routine
basis by the Company?
The Following process are used to identify Work-related Hazards & Assess Risks on a routine and non-routine basis by
the Company:
(i) Hazard Identification and Risk Assessment;
(ii) Aspect and Impact Register;
(iii)
Check List;
(iv) Safety Inspections / Observations;

(v) Interactions with Employees (daily during walk through).
c. Whether Company have process for Workers to report the work related Hazards & to remove themselves
from such risks? (Yes / No)
Yes.
d. Do the Employees / Workers of the Company have access to Non-occupational medical & healthcare services?
(Yes / No)
Yes.
11. Details of safety related incidents, in the following format:
Safety Incident / Number Category FY FY

2021-22 2020-21
Lost Time Injury Frequency Rate (LTIFR) (per one million-person Employees 0.67 0.27
hours worked) Workmen 0.78 0.48
Total Recordable work-related Injuries Employees 31 11
Workmen 17 7
No. of Fatalities Employees 0 0
Workmen 0 0
High consequence work-related injury or ill-health (excluding Employees 1 1
fatalities) Workmen 1 1
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
The following measures taken by the entity to ensure a safe and healthy work place
(i) Provisions of adequate Ventilations, Lighting, Machine Guards and Exhaust Systems at workplace;
(ii) Provisions of Drinking Water, Rest Rooms and establishment of First Aid Center;
(iii) Provisions of Personal Protective Equipment;
(iv) Awareness created through display of signage, precautionary boards and trainings on Fire, Safety, Health & Firs Aid.
(v) Implementation of work permit systems like Height Work, Hot Work;
(vi) Implementation of OSHMS & EMS in the Divisions;
(vii) Periodical Health Check-up of Employees;
(viii) Celebration of Safety Day by displaying safety banners, distribution of safety badges, taking safety pledge and displaying
safety awareness posters, etc.
13. Number of Complaints on the following made by employees and workers:
FY 2021-22 FY 2020-21
Filed during Pending Remarks Filed during Pending Remarks
the year resolution at the year resolution at
the end of year the end of year
Working Conditions Nil Nil - Nil Nil -
Health & Safety Nil Nil - Nil Nil -

14. Assessments for the year:
% of Divisions / Offices that were assessed (by Entity or

Statutory Authorities or Third Parties)
Health and safety practices
44.83%
Working Conditions
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on
significant risks / concerns arising from assessments of health & safety practices and working conditions.
The following corrective action taken or underway to address safety-related incidents:
(i) SoP’s were being displayed in the workplace & educated the employees;
(ii) Organized Safety training programs to create the awareness on safety;
(iii) Employees have been advised to wear the PPE’s in the workplace;
(iv) Work instructions & Safe Work Practices were made & readily available.
(v) Safety Inspection and Accident Investigations are being carried out on regular basis;
(vi) Job Safety Analysis, Safety Inspections & Audit Techniques were used for hazard identifications;
(vii) Safety Audit shall be conducted as recommended by Govt. Authorities.
Leadership Indicators
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees
(Y/N) (B) Workers (Y/N)
(A) Employees (Y/N) – Yes.
(B) Workers (Y/N) – Yes.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and
deposited by the value chain partners.
Inputs w.r.to engagement of Contract Labour and other Contracts handled by HR:
The Bills of the Contractor are cleared after ensuring remittance of statutory dues to the concerned authorities by
verifying deposit / remittance Challans submitted along with Bills.
3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-
health / fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and
placed in suitable employment or whose family members have been placed in suitable employment:
Total No. of affected Employees / No. of Employees / Workers that

Workers are rehabilitated and placed in
suitable employment or whose
family members have been placed
in suitable employment
FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21
Employees Nil Nil Nil Nil
Workmen Nil Nil Nil Nil
4. Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment? (Yes/ No)
No

PRINCIPLE 4:
BUSINESSES SHOULD RESPECT THE INTERESTS OF AND BE RESPONSIVE TO ALL ITS STAKEHOLDERS
1. Describe the processes for identifying key stakeholder groups of the entity.
The Company has robust system for identification of key stakeholders. Stakeholder engagement at HAL is an ongoing process
wherein the Company interacts with its stakeholders at different levels to understand and address their expectations and
collaborates with them for creating shared value. The Company has built a constructive relationship with all its stakeholders
based on mutual trust, transparency, ethics and accountability. Continuous two-way dialogue process with stakeholders
along with their feedbacks on various issues concerning the company’s operations has enabled us to establish sustainable
relationships with the stakeholders. Apart from Customers, Suppliers, Employees, Shareholders, Government, Regulatory &
Statutory Bodies, Auditors, Bankers, Collaborators and JV Partners, all community members within 50 Kms radius from the
location of the plant / Divisions of the Company are considered as key stakeholder of the Company.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder
group.
Stakeholder Whether Channels of Frequency of Purpose and scope of

Group identified as communication (Email, engagement engagement including key
Vulnerable & SMS, Newspaper, (Annually/ Half topics and concerns raised
Marginalized Pamphlets, yearly/ Quarterly during such engagement
Group (Yes/ Advertisement, / others – please
No) Community Meetings, specify)
Notice Board,
Website), Other
Customers No Email, Letters, Meeting Monthly, Quarterly, Sorting out Technical & Logistic
Half Yearly Issues
Shareholders No Website, Email, Letters, As and when required Shareholders meeting and
Meetings, Newspaper Resolution of grievance,
Publications, Annual
Reports,
Employees No E-Newsletter Monthly, Weekly, Information on Company
Occasionally and activities
Fortnightly
Vendors / No Website, Against specific Tender Tender are hosted in Website.
Suppliers Emails Monthly, Quarterly Summary report of
HAL e-Portal Yearly Against specific Order Placed Nomination
Tender Procurement
Procurement Plan for the
interest of MSE vendors
Open Tender available for
Participating.
Industry bodies, No Email, Letters, Meeting As and when required Ensure 100% compliance to
Regulators all local laws
Gover nments; No As needed: Governance Monthly, Quarterly, • ommunicate
C HAL
NGOs; local RFIs/RFPs; presentations; Half Yearly performance and
communities; project meetings; reviews; strategy;
media, industry due diligence; calls and • Share and contribute to
analysts, society meetings; conferences and insight into public and
at large seminars; surveys; press business concerns;
releases; press conferences; • Discuss HAL response
media interviews and to responsible business
quotes; sponsored events, issues.
Analyst Days

PRINCIPLE 5:
BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in
the following format:

Total No. of % Total (C) No. of % (D / C)
(A) employees (B / A) employees
workers workers
covered (B) covered (D)
Employee (Officers + Workmen)
Permanent 24375 25435
305 1.20% 53 0.20%
Other than permanent 1037 997
Total Employees 25412 305 1.20% 26432 53 0.20%
Workers (Workmen)
Permanent 16695 17472
241 1.36% 16 0.09%
Other than permanent 934 994
Total Workers 17629 241 1.36% 18466 16 0.09%
2. Details of minimum wages paid to employees and workers, in the following format:

Total Equal Minimum More than Total Equal Minimum More than
No. Wage Minimum Wage No. Wage Minimum Wage
(A) No. % (B/A No. % (D) No. (E) % No. (F) %
(B) (C) (C/A) (E/D) (F/D)
Employees
Permanent 24375 - - 24375 100% 25435 - - 25435 100%
Male 22218 - - 22218 100% 23225 - - 23225 100%
Female 2157 - - 2157 100% 2210 - - 2210 100%
Other than Permanent 1037 - - 1037 100% 997 - - 997 100%
Male 990 - - 990 100% 963 - - 963 100%
Female 47 - - 47 100% 34 - - 34 100%
Workers
Permanent 16695 - - 16695 100% 17472 - - 17472 100%
Male 15309 - - 15309 100% 16061 - - 16061 100%
Female 1386 - - 1386 100% 1411 - - 1411 100%
Other than Permanent 934 - - 934 100% 994 - - 994 100%
Male 900 - - 900 100% 960 - - 960 100%
Female 34 - - 34 100% 34 - - 34 100%

3. Details of remuneration/ salary /wages, in the following format:
Male Female
Number Median Number Median
remuneration / remuneration /
salary / wages of salary / wages of
respective category respective category
(In `) (In `)
(a) Board of Directors (BoD)
Functional Directors 4 60,40,959 0 NA
Govt. Nominee Director 1 Nil 1 Nil
Independent Director 0 NA 1 1,65,000
(b) Key Managerial Personnel 5 60,28,313 0 NA
(c) Employees other than BoD and KMP 23,203 14,72,521 2,204 14,65,543
(d) Workers 16,209 10,75,738 1,420 10,65,749
Note:
a. Board of Directors and KMPs as on 31.03.2022 has been considered. Median salary arrived based on Salary & perquisite as per Section
17(1) & 17(2) of the Income Tax Act, 1961 for the year 2021-22.
b. Key Managerial Personnel includes 4 Functional Directors and Company Secretary.
c. Remuneration details of Board of Directors and KMPs are as covered under Corporate Governance Report, which is part of the Annual-
Report 2021-22.
d. Government Nominee Directors does not receive any remuneration from the Company.
e. Independent Director receives the sitting fees for attending the meeting of Board and its committees.
4. Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business? (Yes/No)
No
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
No separate mechanism exists in the Company for Redressal of Human Rights Issues. However, there exists Grievance
Redressal Procedure for resolving employee’s grievances on service related matters.
6. Number of Complaints on the following made by employees and workers:
FY 2021-22 FY 2020-21
Filed Pending Remarks Filed during Pending Remarks
during the resolution the year resolution
year at the at the
end of year end of year
Sexual Harassment 1 0 - 5 4 -
Discrimination at workplace 0 0 - 0 0 -
Child Labour 0 0 - 0 0 -
Forced Labour/Involuntary Labour 0 0 - 0 0 -
Wages 0 0 - 0 0 -
Other human rights related issues 0 0 - 0 0 -

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
It is ensured that no work related adverse consequences are meted out to the Complainant by placing the Complainant &
Respondent in different work places, in case both were in the same work place. Moreover, the Complainant is encouraged
to report any such incidences to the higher authorities for appropriate action.
8. Do human rights requirements form part of your business agreements and contracts?
Yes
9. Assessments for the year:
% of your plants and offices that were assessed

(by entity or statutory authorities or third
parties)
Child labour Nil
Forced/involuntary labour Nil
Sexual harassment Nil
Discrimination at workplace Nil
Wages Nil
Others – please specify Nil
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.
Not Applicable
PRINCIPLE 6:
BUSINESSES SHOULD RESPECT AND MAKE EFFORTS TO PROTECT AND RESTORE THE ENVIRONMENT
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter FY 2021-22 FY 2020-21

Total electricity consumption (A) 805630 Giga Joules 799740 Giga Joules
Total fuel consumption (B) 492514 Giga Joules 477958 Giga Joules
Energy consumption through other sources (C) Nil Nil
Total energy consumption (A+B+C) 1298144 Giga Joules 1277698 Giga Joules
Energy intensity per rupee of turnover 53.29 GJ/`Cr 56.78 GJ/`Cr
(Total energy consumption / turnover in rupees)
Note: a) Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No
b) The energy from fuels has been derived based on conversion factors in Table 1.2 of 2006 IPCC Guidelines for National Green
House Gas Inventories.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the
PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if
any.
No

3. Provide details of the following disclosures related to water, in the following format:

Water withdrawal by source (in kilolitres)
(i) Surface water 2111806 2110205
(ii) Groundwater 900832 899057
(iii) Third party water 8536352 9333431
(iv) Seawater / desalinated water 0 0
(v) Others 400 295
Total volume of water withdrawal (in kilolitres) (i + ii 11549390 12342988
+ iii + iv + v)
Total volume of water consumption (in kilolitres) 11549390 12342988
Water intensity per rupee of turnover (Water consumed 474.08 KL/`Cr 548.55 KL/`Cr
/ turnover)
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency. - No
2) Data includes consumption of HALTownship
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
Yes. STPs and ETPs have been installed at all our production locations for treating waste water/effluent. The treated water is
used for gardening and other non-potable uses.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter Please specify unit FY 2021-22 FY 2020-21

NOx Metric Tonnes 33.71 58.43
SOx Metric Tonnes 11.76 24.80
Particulate matter (PM) Metric Tonnes 104.27 117.44
Others – (CO, Acid mist, alkali mist) Metric Tonnes 26.96 26.60
Note: a) Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency? (Y/N) If yes, name of
the external agency. No
b) The figures indicated are based on annual average emission concentrations.
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following
format:
Parameter Unit FY 2021-22 FY 2020-21

(Current (Previous
Financial Year) Financial Year)
Total Scope 1 emissions (Break-up of the GHG into CO2, Metric tonnes of 34888 33851
CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 2 emissions (Break-up of the GHG into CO2, Metric tonnes of 105578 105047
CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 1 and Scope 2 emissions per rupee of 5.77 Tons/`Cr 6.17 Tons/`Cr
turnover
Note: a) Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency? NO
b) The Scope 1 emissions from fuel use have been derived based on conversion factors in Table 2.3 of 2006 IPCC Guidelines for
National Greenhouse Gas Inventories.

c) The Scope 2 emissions from electricity use have been derived based on conversion factor published by Central Electricity Authority
for FY 2020-21.
7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.
Yes, during FY 21-22, 2.56 MW capacity solar power plants have been commissioned at our location in Hyderabad. HAL has
commissioned a cumulative capacity of 48.25 MW capacity wind & solar power plants for captive consumption which has
reduced the dependence on grid electricity and thereby avoiding GHG emissions. In FY21-22, around 40% of the electricity
needs have been met from captive wind & solar power plants.
8. Provide details related to waste management by the entity, in the following format:

Total Waste generated (in metric tonnes)
Plastic waste (A) 77.41 80.60
E-waste (B) 22.67 50.50
Bio-medical waste (C) 32.94 26.93
Construction and demolition 2621.15 2805.49
waste (D)
Battery waste (E) 26.96 31.66
Radioactive waste (F) 0.00 0.00
Other Hazardous waste. Please
specify, if any. (G)
i.Used oil/Coolant(in KL) 513.24 543.34
ii.Waste containing oil 6.38 6.08
iii.ETP/Paint/Magensium sludge 41.95 38.27
iv.Spent hardening salt/grease/chemicals 4.95 27.80
v.Others 49.33 42.44
Sub-total(G) 617.00 657.88
Other Non-hazardous waste generated (H). Please specify, if any.
(Break-up by composition i.e. by materials relevant to the sector)
i.Metal scrap 451.40 379.30
ii.Non-metal scrap 50.10 48.00
iii. Mixed waste 741.00 777.19
Sub-total(H) 1242.50 1204.49
Total (A+B + C + D + E + F + G + H) 4640.63 4857.55

For each category of waste generated, total waste recovered through recycling, re-using or
other recovery operations (in metric tonnes)
FY 2021-22 FY 2020-21
Category of waste (Construction and demolition Waste)
(i) Recycled 0 0
(ii) Re-used 100 10
(iii) Other recovery operations 0 0
Total 100 10
Category of waste (Other Non-Hazardous waste)
(i) Recycled 130.32 117.65
(ii) Re-used 0 0
(iii)Other recovery operations 0 0
Total 130.32 117.65
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
FY 2021-22 FY 2020-21
Category of waste (Plastic Waste)
(i) Incineration 0 0
(ii) Landfilling 0 0
(iii) Other disposal operations 80.10 76.51
Total 80.10 76.51
Category of waste (E-waste)
Total 10.46 47.80
Category of waste (Bio-medical waste)
(i) Incineration 0.34 0.29
Total 32.94 26.95
Category of waste (Construction and demolition Waste)
(ii) Landfilling 801.15 2785.49
Total 1121.15 2795.49
Category of waste (Battery waste)
Total 23.56 30.76

For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
FY 2021-22 FY 2020-21
Category of waste (Other Hazardous waste)
(i) Incineration 53.59 54.90
(ii) Landfilling 20.61 28.15
Total 513.49 456.62
Category of waste (Other Non-Hazardous waste)
Total 20353.38 3761.24
Note: 1) Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.
2) Disposal quantities are more as certain quantity was generated in previous financial year and disposed in current financial year.
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted
by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the
practices adopted to manage such wastes.
Divisions at different locations viz., Bangalore, Nasik, Koraput, Hyderabad, Lucknow, Kanpur, Korwa, Kasaragod and
Barrackpore have taken various measures towards Environment Protection & Conservation, governed by various Acts &
Rules like the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, Solid Waste
Management Rules, 2016, Air Prevention and Control of Pollution Act (1981),Environment (Protection) Act, 1986, Water
Act 1974 (Prevention and Control of Pollution), etc.All the Divisions are ISO 14001 certified and comply with the rules
prescribed by respective State Pollution Control Boards. All emissions and waste generation is monitored as prescribed by the
Pollution Control Boards.
Solid Waste Management:Municipal Solid Waste (MSW) is generated from Townships and Factories. Segregation of MSW
at source is being implemented in Townships (Wet, Dry, Garden, Sanitary and Rejects). In Factories, Wet, Dry and Garden
waste are segregated. Through the process of Vermi-Composting, the Bio-degradable waste comprising of domestic waste
and horticulture waste is being converted to manure. For better utilization of biodegradable waste generated from HAL
Estates, the Company has installed Solid Waste Management Units like Organic Waste Converters and Bio Gas Plants at select
places. At Bangalore, 1.5 Tons per day capacity bio-gas plants are installed.
Hazardous Waste Management:Divisions which use and generate hazardous effluents such as chrome, acid/alkali, cyanide
etc. are having independent Effluent Treatment Plants (ETPs) for treatment. Effluent samples after treatment are periodically
checked in the Laboratories. The sludge from the ETPs is disposed through Agencies authorized by Pollution Control Boards.
The waste water discharged from the ETPs is tested and further treated in Sewage Treatment Plants (STPs) if meeting the
norms. The water processed in the STPs is being used for horticulture purposes within the Divisions and no waste water is
discharged to the public areas. The sludge generated from the STPs is converted into manure and reused.
e-Waste Management: The Company , as part of its operations, generates e-waste from old Electrical and Electronics
Systems such as LRUs, Avionics Control / Test Systems, Electronics Items in Plant & Machinery, Computer Systems (IT) and
Communication Systems, which needs to be disposed after their life expiry or damage. Apart from production activities,
e-waste is also generated in Townships which is segregated and collected at source. The e-waste generated & collected
is stored in designated areas (under cover) and auctioned through with MSTC Limited (Central PSU) for disposal through
authorized Dismantlers / Recyclers / Refurbishers.
Waste Oil Management:Waste Oil produced during maintenance / overhauling of equipment, vehicles and machinery is
collected at source in leak proof containers. The same is stored safely in demarcated areas inside salvage yards and handed
over to recyclers authorized by the respective Pollution Control Boards, through MSTC.

Other Initiatives: Most of the Divisions have taken initiatives towards banning of Plastics Bags / Articles and declaring
‘No-Plastics’ Zones. The Non bio-degradable waste like polythene etc., is being collected and sent to recycling Agencies, as
per Rules.
At Bangalore, the Company has taken an initiative towards recycling and reusing the waste paper generated from various
offices of HAL, Bangalore by setting up a Waste Paper Recycling Unit (75kg / day). Various products made from the unit
include Writing Pads, Visiting Cards, Bags, Files, Folders, etc.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where
environmental approvals / clearances are required, please specify details in the following format:
Sl. Location of Type of operations Whether the conditions of environmental approval /

No. operations/offices clearance are being complied with? (Y/N)
If no, the reasons thereof and
corrective action taken, if any.
HAL does not have any operations/offices in/around ecologically sensitive areas.
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in
the current financial year:
Name and brief details of EIA Date Whether conducted Results Relevant
project Notification by independent communicated in Web link
No. external agency public domain
(Yes / No) (Yes / No)
Not Applicable
12. Is the entity compliant with the applicable environmental law / regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection
act and rules thereunder (Y/N). –Yes
If not, provide details of all such non-compliances, in the following format:
S. No. Specify the law / regulation Provide details Any fines / penalties / Corrective action taken,
/ guidelines which was not of the non- action taken by regulatory if any
complied with compliance agencies such as pollution
control boards or by courts
Not Applicable
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable
sources, in the following format:

From renewable sources
Total electricity consumption (A) 324514 Giga Joules 321043 Giga Joules
Total fuel consumption (B) 64 Giga Joules Nil
Energy consumption through other sources (C) Nil Nil
Total energy consumed from renewable sources (A+B+C) 324578 Giga Joules 321043 Giga Joules

From non-renewable sources
Total electricity consumption (D) 481116 Giga Joules 478696 Giga Joules
Total fuel consumption (E) 492450 Giga Joules 477958 Giga Joules
Energy consumption through other sources (F) Nil Nil
Total energy consumed from non-renewable sources (D+E+F) 973566 Giga Joules 956654 Giga Joules
Note: Indicate if any independent assessment / evaluation / assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency. No.
PRINCIPLE 7:
BUSINESSES, WHEN ENGAGING IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A MANNER
THAT IS RESPONSIBLE AND TRANSPARENT
1. a. Number of affiliations with trade and industry chambers / associations.
The Company has taken Corporate Membership with four (4) Nos. of trade and industry chambers / associations:
b. List the top 10 trade and industry chambers / associations (determined based on the total members of such
body) the entity is a member of/ affiliated to.
Sl. Name of the trade and industry chambers/ associations Reach of trade and
No. industry chambers/
associations
(State/National)
1 Federation of Indian Chambers of Commerce & Industry (FICCI) National
2 The Associated Chambers of Commerce & Industry of India (ASSOCHAM India) National
3 Confederation of Indian Industry (CII) National
4 Engineering Export Promotion Council India (EEPCI) National
2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the
entity, based on adverse orders from regulatory authorities.
Name of authority Brief of the case Corrective action taken

NIL
PRINCIPLE 8:
BUSINESSES SHOULD PROMOTE INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the
current financial year.
Name and SIA Notification Date of Whether Results communicated Relevant

brief details No. notification conducted by in public domain (Yes Web link
of project independent / No)
external agency
(Yes / No)
NIL

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken
by your entity, in the following format:
Sl. Name of Project for State District No. of Project % of PAFs Amounts paid
No which R&R is ongoing Affected covered by to PAFs in the
Families (PAFs) R&R FY (In INR)
NIL
3. Describe the mechanisms to receive and redress grievances of the community.
Complain can be received through Public Grievance Portal (PG Portal).
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2021-22 FY 2020-21
Directly sourced from MSMEs/ small producers 43.96% 31.74%
Sourced directly from within the district and neighbouring districts NA NA
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
Details of negative social impact identified Corrective action taken

Not Applicable
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts
as identified by government bodies:
S. No. State Aspirational District Amount spent (In INR)

1 Odisha Koraput `1430.52 Lakhs
3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized / vulnerable groups? (Yes/No) Yes
(b) From which marginalized / vulnerable groups do you procure?
Social Category (SC/ST) and Companies owned by Women.
(c) What percentage of total procurement (by value) does it constitute?
% Procurement Social Category (SC/ST) Entrepreneurs: For year 20-21: 0.50%, Year 21-22: 0.48%
% Procurement from Women Entrepreneurs : For year 20-21: 1.44%, Year 21-22: 3.54%
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in
the current financial year), based on traditional knowledge:
S. Intellectual Property based on Owned / Acquired Benefit shared (Yes Basis of calculating
No. traditional knowledge (Yes / No) / No) benefit share
NIL NA
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related
disputes wherein usage of traditional knowledge is involved.
Name of authority Brief of the Case Corrective action taken

Nil

PRINCIPLE 9:
BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CONSUMERS IN A RESPONSIBLE MANNER
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Defence forces have a well-established, structured and periodic meetings for raising issues. Same is being followed and
compiled by the Company. These documents are treated as confidential by Defence forces.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information
about:
As a percentage to total turnover

Environmental and social parameters The main products of the company are Aircraft, Helicopters, Engines and
relevant to the product other accessories for use in strategic/national security applications. Hence Not
Applicable
Safe and responsible usage 100
Recycling and/or safe disposal The main products of the company are Aircraft, Helicopters, Engines and other
accessories for use in strategic/national security applications. Once the products
are sold they would not come back to the company. Hence not applicable.
3. Number of consumer complaints in respect of the following:
FY 2021-22 Remarks FY 2020-21 Remarks

Received Pending Received Pending
during the resolution during the resolution
year at end of year at end of
year year
Data privacy Nil Nil Nil Nil
Advertising Nil Nil Nil Nil
Cyber-security Nil Nil Nil Nil
Delivery of essential services 142 #
- 126 #
-
Restrictive Trade Practices Nil Nil Nil Nil
Unfair Trade Practices Nil Nil Nil Nil
Other Nil Nil Nil Nil
# The issues have been deliberated in structured meeting with Customers and have been attended
4. Details of instances of product recalls on account of safety issues:
Number Reason for recall

Voluntary Recalls NIL NA
Forced Recalls NIL NA
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.
Yes, Cyber Security Policy is hosted at https://hal-india.co.in/Common/Uploads/PDFS/Cyber_Security_Policy.pdf
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services.
HAL’s customers being the defence forces, the information is confidential.

Independent Auditor’s Report
To The Members of Hindustan Aeronautics Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of Hindustan Aeronautics Limited (“the Company”)
which comprise the Balance Sheet as at 31st March 2022 and the Statement of Profit and Loss (including Other Comprehensive
Income), (Statement of Changes in Equity) and the Statement of Cash Flows for the year then ended, and Notes to the Standalone
Financial Statements, including a summary of Significant Accounting Policies and other explanatory information (hereinafter
referred to as “the standalone financial statements”) in which are included the returns of 27 divisions for the year ended on that
date audited by the Division Auditors of the company.
In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a
true and fair view in conformity with accounting principles generally accepted in India, of the state of affairs of the Company as
at March 31, 2022, and the Profit, total comprehensive income, (Changes in Equity ) and its Cash Flows for the year ended on
that date.
Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Financial
Statements under the provisions of the Act, and the Rules there under, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the standalone financial statement.
Emphasis of Matter
1) Attention is invited to Notes to the Financial Results extracted below:

a) Note:49 (33) (g)
COVID-19 Impact
Current year Impact:
Second wave of Covid-19 has forced the company to declare for a phased Lockdown at various divisions on substitution basis
during April and May 2021.The Employees will put in additional hours for the lost hours during lockdown period. The lost
man hour was recovered in June and July 2021.The Company has shown improved performance in the last III Quarter (July
to March 2022). Hence, there is no significant impact during the year ended 31.03.2022.
Anticipated Future Impact:
Based on the information available (internal as well as external) up to the date of approval of this financial result, Company
expects to recover the carrying amount of Intangible assets, Inventories, Property, Plant and Equipment’s, Lease, Financial
Instruments, Trade Receivables etc. Efforts are being made to minimize the impact. The Company will continue to closely
monitor the developments, the future economic and business outlook and its impact on Company’s future financial statements
with a view to minimize the Covid impact.
b) Note no :49 (43 G)
Revision of pay scales of executives and workmen, with effect from 01.01.2017 was implemented in accordance with the
guidance issued by DPE vide OM dated 03.08.2017 for Executives and in accordance with the Wage Agreement entered into
between Management and Employees Union representatives in 2019-20 in respect of Workmen. On an interpretation on pay
refixation and pursuant to the directives of the Administrative Ministry, the pay fixation to be revised and the excess amount
paid is to be recovered from the employees.

This has resulted in reduction of salaries and wages for the year ended 31 March 2022 by ` 5256 lakhs (Previous year: `
14450 lakhs) and a consequential reduction in sales revenue for the year ended 31 March 2022 by ` 812 lakhs (Previous year:
` 5677 lakhs) .
While so, the Employees Union and Officers Association have filed Writ Petitions with Hon’ble High Court of Karnataka
to stay recovery of excess amount of salary paid by the Company. The Hon’ble High Court has granted interim stay on
recoveries,Pending disposal of the writ petitions by the High court, the excess amount is shown under claims recoverable
Note No.19 for ` 24489 lakhs (Previous year `19368 lakhs)
In respect of employees who retired prior to 30 June, 2021, provision is made for the amount recoverable ` 2584 lakhs
(Previous year: ` 2680 lakhs).The amount withheld from employees who retired after 30th June 2021 is kept under other
liabilities ` 1835 lakhs (Previous year: ` NIL).Based on the final order that may be passed, suitable effect will be carried out in
the accounts.
Our opinion is not modified in respect of these matters.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial
Statements of the current period.These matters were addressed in the context of our audit of the Financial Statements as a whole,
and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
Key Audit Matters Response to Key Audit Matters & Conclusion

a) Revenue recognition Our audit approach consisted testing of the design and
operating effectiveness of the internal controls and substantive
(‘Ind AS 115’)
testing as follows:
The revenue standard establishes a comprehensive • Evaluated the appropriateness of the disclosures
framework for determining whether, how much and provided under the revenue standard and assessed the
when revenue is recognized. This involves certain completeness and mathematical accuracy of the relevant
key judgements relating to identification of distinct disclosures.
performance obligations, determination of transaction
• Evaluated the design of internal controls relating to
price of identified performance obligation, the
implementation of the revenue accounting standard.
appropriateness of the basis used to measure revenue
recognized over a period. Additionally, the standard • Selected a sample of continuing and new contracts, and
mandates robust disclosures in respect of revenue tested the operating effectiveness of the internal control,
and periods over which the remaining performance relating to identification of the distinct performance
obligations will be satisfied subsequent to the balance obligations and determination of transaction price.
sheet date. We carried out a combination of procedures involving
enquiry and observation, reperformance and inspection
of evidence in respect of operation of these controls.
• Selected a sample of continuing and new contracts and
performed the following procedures:
• Read, analyzed and identified the distinct
performance obligations in these contracts.
• Compared these performance obligations with that
generallidentified and recorded by the company.
• Considered the terms of the contracts to determine
the transaction price including any variable
consideration to verify the transaction price used to
compute revenue and to test the basis of estimation
of the variable revenue.
• Examination of the correspondence relating to price
revision and ascertained the reasonableness of the
estimates.

• Sample of revenues disaggregated by type and
service offerings was tested with the performance
obligations specified in the underlying contracts.
b) Impairment of Trade Receivables We have verified the
In respect of receivables from Government the company i) Effectiveness of internal controls in place and procedures
generally does not make any impairment provision based followed in identifying the recoverability of long
on past experience. outstanding dues.
The amount involved being significant balance and ii) The procedures and follow up actions in ascertaining the
management judgement we consider this as a Key Audit impairment of receivables.
Matter
Our audit procedures include evaluation of provisions made
for impairment in earlier years. We also made test checks of
invoice wise collection details provided made in respect of in
the five preceding financial years and we concluded that the
management assumption is reasonable
c) Liquidated damages We have verified the controls, period of delay, the expected
days of delay as on 31.03.2022 and also the calculation for the
The Company’s contract with the customers has
liquidated damages recognized and found the system followed
standard clause for Liquidated damages for delayed
and calculation to be in order.
delivery. The company’s product have extended period
of manufacturing; design approvals and inspection by
customer at various stages which result in delay in certain
cases leading to liquidated damages. The liquidated
damages recognized being significant in the statement
of profit and loss, is considered a key audit matter in our
opinion.
d) Work – in - Progress (WIP) - Inventories Our Audit Procedures include review of
Inventories include Work in Progress which have been • Physical Verification instructions
physically verified by the management based on physical
• Physical verification reports
verification instructions.
• Roll back procedures
• Examining the basis of valuation on a test check basis
Based on the above audit procedures we concluded that the
valuation of WIP is proper.
e) Revision of pay We have verified the Audit para given by PDCA Bangalore,
and the directives given by the Administrative Ministry
Revision of pay scales of executives and workmen,
dated 07.04.2021.
with effect from 01.01.2017 was implemented in
accordance with the guidance issued by DPE vide OM We have verified the Copies of the writ petition filed by
dated 03.08.2017 for Executives and in accordance the employees, the interim orders of the Hon’ble High
with the Wage Agreement entered into between Court and the legal opinion from the company counsel.
Management and Employees Union representatives in
We verified the internal control and the programme logic
2019-20 in respect of Workmen. On an interpretation
for recalculation of the employees cost and also made test
on pay refixation and pursuant to the directives of the
check on walk through basis. Based on the above audit
Administrative Ministry, the pay fixation is to be revised
procedures we are satisfied with accounting treatment
and the excess amount paid is to be recovered from the
followed for employees benefits expenses, recognition
employees.
of the amount recoverable, and the provision relating to
retired employees.

The revision has resulted in reduction of salaries and
wages for the year ended 31 March 2022 by ` 5256
lakhs (Previous year: ` 14450 lakhs ) and consequential
reduction in sales revenue for the year ended 31 March
2022 by ` 812 lakhs (Previous year: ` 5677 lakhs) .
While so, the Employees Union and the Officers
Association have filed Writ Petitions with Hon’ble High
Court of Karnataka to stay recovery of excess amount of
salary paid by the Company. The Hon’ble High Court has
granted interim stay on recoveries, Pending final disposal
of the writ petitions by the High court, the excess amount
is shown under claims recoverable Note No.19 ` 24489
lakhs (Previous year ` 19368 lakhs)
In respect of employees who retired prior to 30 June,
2021, provision is made for the amount recoverable
` 2584 lakhs (Previous year: ` 2680 lakhs).The amount
withheld from employees who retired after 30th June
2021 is kept under other liabilities ` 1835 lakhs (Previous
year: ` NIL).
Information Other than the Financial Statements and Auditors Reports Thereon
The company’s Board of Directors is responsible for the other information. The other information comprises the information
included in Board’s Report, Management Discussion & Analysis Report, Business Responsibility Report, but does not include the
financial statements and our auditor’s report thereon. The Board’s Report, Management Discussion & Analysis Report, Business
Responsibility Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the reports, if we conclude that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance.
Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (“the Act”)
with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position,
financial performance, (Changes in Equity) and cash flows of the Company in accordance with the accounting principles generally
accepted in India including the accounting Standards specified under Section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Financial Statements, The Board of Directors is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion
on whether the company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings including any significant deficiencies in Internal Control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
Other Matter
a) We did not audit the financial statements/ information of 27 Divisions included in the financial statement of the company
whose financial statements/financial information reflect total assets of ` 25 65 043 Lakhs as at 31st March 2022 and the total
revenue of ` 6 77 320 lakhs for the year ended on that date, as considered in the standalone financial statements/information
of these divisions have been audited by the division auditors whose reports have been furnished to us, and our opinion in so
far as it relates to the amounts and disclosures included in respect of divisions, is based solely on the report of such division
auditors.
Our opinion is not modified in respect of these matters

Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“ the Order”), issued by the Central Government of India in
terms of sub-section (11) of section 143 of the Companies Act, 2013 we give in the “Annexure –B” statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books and proper returns adequate for the purposes of our audit have been received from the
divisions not visited by us.
c) The reports on the accounts of the divisions of the company audited under Section 143 (8) of the Act by the division
auditors have been sent to us and have been properly dealt with by us in preparing this report.
d) The Balance Sheet, the Statement of Profit and Loss (the Statement of Changes in Equity) and Cash Flow Statement
dealt with by this Report are in agreement with the books of account and with the returns received from the divisions
not visited by us.
e) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards prescribed under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
f) Ministry of Corporate Affairs vide notification no 1/2/2014-CL-V dated 23rd February 2018 has exempted the companies
engaged in defense production to the extent of application of relevant Accounting Standard on Segment Reporting. In
view of the above, no disclosure is made by the company as required by Ind AS 108. Subject to the above, we state that,
in our opinion, the aforesaid standalone financial Statements comply with the Accounting Standards specified under
Section 133 of the Act.
g) In terms of circular No. GSR 463(E) dated 05th June 2015 issued by the Ministry of Corporate Affairs, Government of
India, the company being Government Company, is exempt from the provisions of section 164(2) of the Act regarding
disqualification of Directors.
h) The provisions of Section 197 are not applicable to a government Company (in terms of MCA Notification NO.GSR 463
(E) dated 05th June 2015) as the managerial remuneration is paid as per the appointment letter from the Government of
India.
i) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”
j) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations
given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements
–Refer Note 49 (2)(a), 49 (2)(b), 49 (20), 49 (21), 49 (41), 49 (43G), to the financial statements
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, on long-term contracts. The company does not have any derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor education and protection fund by the
company.
iv. (a) The management has represented that, to the best of it’s knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the division to or in any other persons or entities, including foreign entities (“lntermediaries”}, with the
understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, 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;

(b) The management has represented, that, to the best of it’s knowledge and belief, no funds have been received by
the division from any persons or entities, including foreign entities (“funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, 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;
and
(c) Based on such audit procedures we have considered reasonable and appropriate in the circumstances, nothing
has come to the notice that has caused us to believe that the representations under sub-clause (i) and (ii)
contain any material mis-statement.
v) a) The company has not declared any final dividend for the financial year 2020-2021.
b) The interim dividends declared on 11.11.2021 and 10.02.2022 for the financial year 2021-2022 and paid by
the Company during the year is in accordance with Section 123 of the Companies Act, 2013.
c) The Company has not proposed any final dividend up to the date of our report.
I) As required by section 143(5) of the Act, we give in “Annexure C” a statement on the matters specified by the Comptroller
and Audit General of India for the Company.
For Maharaj N R Suresh and Co. LLP

Chartered Accountants
Firm Registration No. 001931S/S000020
N R Suresh
Partner
Place:Bengaluru Membership No.: 021661
Date: 13.05.2022 UDIN:22021661AIXLJQ1542

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF HINDUSTAN AERONAUTICS LIMITED.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013
(“the Act”).
We have audited the Internal Financial controls with reference to financial statements of HINDUSTAN AERONAUTICS LIMITED
(“the Company”) as of March 31, 2022 in conjunction with our audit of the Standalone Financial Statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining Internal Financial controls with reference to financial
statements criteria established by the Company, considering the essential components of Internal Control stated in the Guidance
Note on Audit of Internal Financial controls with reference to financial statements, issued by the Institute of Chartered Accountants
of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the
accounting records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s Internal Financial controls with reference to financial statements
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial controls
with reference to financial statements (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of Internal Financial Controls,
both applicable to an audit of Internal Financial Controls and both issued by ICAI. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate Internal Financial controls with reference to financial statements was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls System
over Financial Reporting and their operating effectiveness. Our audit of Internal Financial controls with reference to financial
statements included obtaining an understanding of Internal Financial controls with reference to financial statements, assessing the
risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the Auditors’ judgement, including the assessment of the risks of material
misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
division Internal Financial Controls System over Financial Reporting.
Meaning of Internal Financial controls with reference to financial statements

A company’s Internal Financial Control over Financial Reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s Internal Financial Control over Financial Reporting includes those policies and
procedures that:
(i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company;
(ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being
made only in accordance with authorisations of Management and Directors of the Company; and
(iii) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the
Company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with reference to financial statements
Because of the inherent limitations of Internal Financial controls with reference to financial statements, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the Internal Financial controls with reference to financial statements to future
periods are subject to the risk that the Internal Financial Control over Financial Reporting may become inadequate because of
changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate Internal Financial Controls System over Financial Reporting
and such Internal Financial controls with reference to financial statements were operating effectively as at March 31, 2022, based
on the Internal Control over Financial Reporting criteria established by the Company, considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial controls with reference to financial statements issued
by ICAI.

N R Suresh
Partner
Date: 13.05.2022 UDIN:22021661AIXLJQ1542

ANNEXURE “B” To The Independent Auditor’s Report Of Even Date On The Standalone Financial
Statements Of Hindustan Aeronautics Limited.
The Annexure referred to in Paragraph 1 under the heading ‘Report on Other Legal and Regulatory Requirements’ of our Report
of even date:
In terms of the information and explanations sought by us and provided to us by the Company and the books of account and
records examined by us in the normal course of audit and to the best our knowledge and belief we state that;
(i) (a) (A) The Company has maintained proper records showing full particulars including quantitative details and situation of
Property Plant and Equipment and relevant details of right-of-use-assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a programme of physical verification of these Property, Plant and Equipment so as to cover all the
assets once in every five years, which in our opinion is reasonable having record to the size of the company and nature of
its assets. Pursuant to the programme, certain Property, Plant and Equipment’s were due for verification during the year
and were physically verified by the management during the year. According to the information and explanations given
to us no material discrepancy were noticed on such verification.
(c) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease
agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the
Company, except the following:
Description Gross Held in Whether Period Reason for not being

of property carrying name of promoter, director held–indicate held in name of
value in or their relative range, where company*
lakhs or employee appropriate
FMD
Land 1 Various NA Approx. 1950 Compendium Error. Estate
72.675 Acres persons department is in possession
of Hand book with
land acquired in various
survey numbers called as
Compendium. Few title
documents are not available
as per the compendium.
NASIK
Land at 0 Government NA Since Inception *Also indicate if in dispute
Kasbe Sukena of of the Nashik
Railway Maharashtra factory in 1964
station: (GOM)
Approx.
265.17 acres
of rail siding
handed over
GOM
LUCKNOW
Land 39.320 286 Lakhs Lucknow Not applicable 19.05.1986 The land is in the possessions
Acres Development of the division, however,
Authority same is to be registered in
the name of the division
by Lucknow Development
Authority.

Description Gross Held in Whether Period Reason for not being
of property carrying name of promoter, director held–indicate held in name of
value in or their relative range, where company*
lakhs or employee appropriate
KANPUR
Land at ` 4.00 Lakhs No title deed No Since beginning We have been informed
Kanpur but date not that possession of the said
(401.19 available immovable property was
Acres) handed over to Hindustan
Aeronautics Limited (HAL)
by district Land Acquisition
Officer and Indian Air Force,
therefore no title deed is
required to be executed
under Government Grants
Act, 1895. (Section 2
Government Grants
are exempted from the
operation of the Transfer of
Property Act)
Land acquired and handed
over to HAL by district land
Land at
Not title December acquisition officer, case filed
Kanpur No
deed 1965 with District Magistrate for
(27.84) Acres
transfer of name in title
deed.
(d) The Company has not revalued any of its Property, Plant and Equipment and intangible assets during the year;
(e) No proceedings have been initiated during the year or are pending against the Company as of 31st March 2022 for
holding any benami property under Benami Transaction (Prohibition) Act ,1988 and rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals and no discrepancies of 10%
or more in the aggregate for each class of the inventory were noticed.
(b) The Company has been sanctioned working capital limits in excess of ` 5 crore, in aggregate, during the year from
banks on the basis of security of current assets. There are differences between the stock statement submitted to
the banks and books of account however the differences are not significant. Refer note 55J of note 49 to financial
statements.
(iii) During the year the Company has made investments in a joint venture company and has granted loans both secured and
unsecured to its employees and has not provided any guarantee or security to any other entity.
(a) The company has provided both secured and unsecured loan to its employees .
A) The aggregate amount granted during the year and balance outstanding at the balance sheet date is given below:
Particulars Loans to employees ` in Lakhs

Aggregate amount provided during the year 207
Balance outstanding as at balance sheet date in respect of above 969
(b) In our opinion, the Investment made during the year are, prima facie,not prejudicial to the Companies Interest.
(c) The repayment of principal and payment of interest for employees loan has been stipulated and the repayments are
regular.

(d) There are no overdue amount for more than ninety days.
(e) The company has not granted any loan or renewed or extended or fresh loans granted to settle the overdues of existing
loans given to the same parties. Hence, reporting under clause 3(iii)(e) of the Order is not applicable.
(f) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without
specifying and terms or period of repayment during the year. Hence, reporting under clause 3(iii)(f) is not applicable.
(iv) In terms of Circular No.GSR 463 (E) dated 5th June 2015 issued by Ministry of Corporate Affairs, Government of India, the
Company being a Government Company engaged in Defense production is exempt from Section 185 and 186 of Companies
Act, 2013 and hence considered not applicable.
(v) The Company has not accepted any deposits or amount which are deemed to be deposits.Hence, reporting under Clause 3
(v) of the order is not applicable.
(vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the
Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148 (1)
of the Act and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
We have not, however made a detailed examination of the records with a view to determine whether they are accurate or
complete.
(vii) (a) The company is regular in depositing undisputed statutory dues, including Goods and Service Tax,Provident Fund,
Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess,
and any other Statutory Dues to the appropriate authorities and there were no undisputed amounts payable which were
in arrears as at 31st March 2022 for a period of more than six months from the date they became payable.
(b) Details of dues of Goods and service tax, income Tax or Sales Tax or Service Tax or Duty of Customs or Duty of Excise
or Value Added Tax, and Cess that have not been deposited as on 31st March 2022 on account of disputes are given
below :
Sales Tax #
Assessment Amount Appeal by Forum Where dispute is pending
Year (In Lakhs)
1986-87 3340 The Company 1st Appellate Authority
1999-2000 151 The Company Maharashtra Sales Tax Tribunal
2000-2001 57 The Company 1st Appellate Authority. (Re calculation pending)
2000-2001 9 The Company Rectification Application submitted on 19.05.2006 pending
before Dy.Com. Of Sales Tax Assessment Nashik
2001-2002 480 The Company 1st Appellate Authority. Jt. Commissioner Sales tax (appeal)-
Nashik (Re calculation pending)
2002-2003 89 The Company Maharashtra Sales Tax Tribunal, Mumbai
2004-2005 270 The Company Ratification application before Sr. Deputy Commissioner of
Sales Tax Nasik
2005-2006 41459 The Company Remanded back order received from first Appellate authority
- Nasik on 23-11-2021

Year (In Lakhs)
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
- Nasik on 23-11-2021
2013-14 93906 The Company Pending before First Appellate authority - Nasik
2014-15 67170 The Company Assessment order Received. Writ petition is filed before the
Bombay High Court
2014-15 The Company Assessment order Received on 02-04-2019. Rectification
application filed. Rectification order received on 26-06-2019
2016-17 65 The Company Rectification Application submitted on 05-07-2021 for
submission of "Form C" pending before Dy.Com. Of Sales Tax
Assessment Nashik
2005-06 137.68 The Company CCT, J&K
2004-2015 32437.44 The Company Additional Commissioner (Appeal)
1996-97 479 The Company High Court, Allahabad

Year (In Lakhs)
2013-14 3195 The Company Tribunal
2017-18 835 The Company Addl Commissioner (A), Commercial Tax, Kanpur
2005-06 102 The Company WB Commercial Taxes Appellate and Revisional Board, Kolkata
2015-16 9 The Company CESTAT
2016-17 4 The Company CESTAT
2010-11 372 The Company Appellate Tribunal, Lucknow
2011-12 1432 The Company High Court
Total 1121594
# Sales Tax paid against Disputed tax ` 11 048 Lakhs
Service Tax #
Year (In Lakhs)
2008-09 to 2012-13 4709 The Company Pending before Tribunal, Bangalore
2009-10 387 The Company Pending before Tribunal, Bangalore
2014-15 to 2017-18 136 The Company Pending before Tribunal, Bangalore
April 17 to June 17 6 The Company Pending before Tribunal, Bangalore
August 2002 to March 2003 6.3 The Company CESTAT, Bangalore

Year (In Lakhs)
April 2003 to March 2004 25.89 The Company CESTAT, Bangalore
April 2013 to June 2017 13 The Company Commissioner of Service Tax (appeals)-I.
October 2012 to June 2017 6.4 The Company “Assistant Commissioner” East Division – 5, GST
Commissionerate, Bengaluru East
April 2011 – March 2012 74 The Company CESTAT
April 2009 – 2010 to 84 The Company CESTAT
March 2010 – 2011
October 2007 to 120 The Company CESTAT
March 2009
July 2007 to July 2008 2336.94 The Company CESTAT
March 12 – Mar 14 183 The Company Commissioner of Appeals
October 2013 to June 2017 380 The Company Commissioner of Appeals
2013-14 2.34 The Company Commissioner of Central Tax (Appeal) Domlur
Bangalore
Bangalore
Bangalore
Bangalore
Bangalore
Bangalore
2013-14 till 2017-18 56.02 HAL FMD Commissioner of Central Tax (Appeals) East
Commissionerate Domlur
2006-07 5430.04 The Company Matter decided by H'ble CESTAT, Mumbai in HAL
favour. Department has gone into appeal in Supreme
Court.
2006-2007 1190.8 The Company Appeal filed before CESTAT, Mumbai vide ST/86342/13-
MUM Dated 01.04.2013
2007-08 868.75 The Company Matter decided by H'ble CESTAT, Mumbai in HAL
favour. Department has gone into appeal in Supreme
Court

Year (In Lakhs)
2008-09 211.73 The Company 1) Matter decided by H'ble CESTAT Mumbai in HAL
Favour. Department has gone into appeal in Supreme
Court.
2) Joint Commissioner of CentraI Excise & Customs,

Nashik.
2010-11 384.22 The Company Appeal filed before CESTAT, Mumbai vide ST/863421l3-
2011-12 199.3 The Company 1) Appeal filed before CESTAT vide ST/89144/13-MUM
Dated 27.11.2013; Case remanded back by CESTAT
vide final order Dt.20.10.2017. Addl Comm. CGST
& Central excise Nashik has issued OiO No. 03/Addl/
ADJ/2019 Dt. 31.01.2019 for Demand of ` 21.21 Lacs.
2) ST/85856/15-MUM Dated 21.04.2015; Case

remanded back by CESTAT vide final order
Dt.01.11.2018 to the adjudicating authority to
consider the eligibility of Notification No. 12/2003-ST
Dt.20.06.2003 afresh. No further progress in the case.
2012-13 653.36 The Company Appeal filed before CESTAT Mumbai vide ST/85856/15-
MUM Dated 21.04.2015; Case remanded back
by CESTAT vide final order Dt. 01.11.2018 to the
adjudicating authority to consider the eligibility of
Notification No. 12/2003-ST Dt.20.06.2003 afresh. No
further progress in the case.
2012-13 7.15 The Company Pending before First Appellate authority - Nasik
2012-13 135.18 The Company Appeal filed before CESTAT in Mar 2019;ST/86125/
2019-DB; No further hearing posted
2013-14 9395.5 The Company Appeal filed before CESTAT, Mumbai vide ST/87320
DT 10-10-2016; No further hearing posted
2014-15 12326.47 The Company Appeal filed before CESTAT, Mumbai vide ST/85007
Dt. 11/01/2017; No further hearing posted
2015-16 12744.5 The Company Appeal filed before CESTAT in Mar 2019 vide
ST/86124/2019-DB; No further hearing posted
2015-16 5.63 The Company Appeal filed before CESTAT

Year (In Lakhs)
2016-17 37518.19 The Company Appeal filed before CESTAT in Mar 2019 ;
2016-17 250 The Company Appeal filed before CESTAT in Mar 2019;ST/86125
/2019-DB; No further hearing posted
2017-18 2191.16 The Company Appeal filed before CESTAT in Mar 2019 ;
2007-08 to 2011-12 10145 The Company CESTAT EZB, KOLKATA
2015-16 1044.74 The Company Commissioner of CGST & Central Excise, Audit
Commissionerate, Bhubneswar
2016-17 &2017-18 322.91 The Company Pending before the joint Commissioner of CGST &
Central Excise, Audit Commissionerate, Bhubneswar
2005-06 to 2009-10 385.43 The Company CESTAT
2010-11 38.49 The Company CESTAT
2010-11 38.49 CCE&ST CESTAT
2016-17 & 2017-18 242.22 The Company CESTAT
2004-05 to 2008-09 426 The Company Central Excise & Service Tax appellate Tribunal, New
Delhi
2011-12 to 2014-15 11976 The Company CESTAT, Allahabad
2015-16 to 2016-17 184 The Company CESTAT, Allahabad
Various Years 166 The Company Commissioner (Appeal)
2005-06 61.66 The Company Service Tax Appellate Tribunal
2010-11 56.77 The Company Commissioner (Appeals)
April 2009 To March 2013 450.4 The Company CESTAT
2016-17 13973 The Company CESTAT/ Tribunal
2012-2017 (Up to June 30, 103 The Company Commissionerate , Bangalore
2017)
2013 – 2017 (Upto June 124 The Company Commissionerate , Bangalore
30,2017)
2014 – 2017 (Upto June 100 The Company Commissionerate , Bangalore
30,2017)
2014-15 to 2018-19 1 The Company CESTAT/ Tribunal
Total 1,38,028
# Service Tax paid against Disputed tax ` 3,799 lakhs.

GST #
Year (In Lakhs)
2017-18 308 The Company HAL has filed Appeal with Appellate Authority (Dy.
Commissioner of Sales tax)
Total 308
# GST paid against Disputed tax ` 13 lakhs.
Customs Duty #
Year (In Lakhs)
2019-2020 945 The Company Pending before Tribunal, Bangalore
2013-14 23,568.53 The Company CESTAT
2018 – 2019 & 2019 – 2020 1286 The Company Commissionerate of Customs, Bangalore
Total 30 184
# Customs Duty paid against disputed tax ` 3 582 lakhs
Income Tax #
Year (In Lakhs)
2011-12 to 2020-21 400 The Company Asst. Commissioner, Income Tax, TDS
2017-18 18033 The Company Commissioner of Appeals
Total 98778
# Income tax paid against disputed tax ` 247 lakhs
Municipal Tax #
Year Amount Appeal by Forum Where Authority
(In Lakhs) Dispute is pending
2008-09 till 2021-22 15210 The Company City Civil Court, Property tax against BBMP
Bangalore Bangalore
Total 15,210
# Municipal Tax paid against Disputed tax ` Nil.

Others
Year Amount Appeal by Forum Where Authority
(In Lakhs) Dispute is pending
01/04/2019 to 30/09/2020 16.25 The Company ESIC, Regional Employees State Insurance Act
Director (Appellant
Authority)
2001-02 to 2021-22 2673 The Company Bombay High Court Non Agricultural Cess
2001-02 to 2021-22 548 The Company Bombay High Court Gram Panchayat Tax
Various Years 728.04 The Company CIVIL/HIGH COURT OTHERS CASES
2013-14 119 The Company ESI Court Employees State Insurance Act
2014-15 6 The Company ESI Court Employees State Insurance Act
2014-15 507 The Company High Court High Court
October 2012 – June 2017 17.51 The Company High Court High Court
Total 4615
(viii) There were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act,1961 (43 of 1961).
(ix) (a) The Company has not taken any loans or other borrowings from any lender. Hence reporting under clause 3(ix)(a) of the
Order is not applicable.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
(c) The Company has not taken any term loan during the year and there are no outstanding term loans at the beginning of
the year and hence, reporting under clause 3(ix)(c) of the Order is not applicable.
(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima
facie, have not been used during the year for long-term purposes by the Company.
(e) on an overall examination of the financial statement of the Company ,the Company has not taken any funds from any
entity or person on account of or to meet the obligation of its subsidiaries.
(f) The Company has not raised any loans during the year and hence reporting under clause 3(ix)(f) of the order is not
applicable
(x) (a) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments)
during the year and hence reporting under clause 3(x)(a) of the Order is not applicable.
(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible
debentures (fully or partly or optionally) and hence reporting under clause 3(x)(b) of the Order is not applicable.
(xi) (a) No fraud by the Company or fraud on the Company has been noticed or reported during the year
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under
rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the
date of this report.
(c) No whistle blower complaints are received during the year by the Company.
(xii) The Company is not a Nidhi Company and hence complying with the provisions of the Nidhi Rules, 2014 does not arise.
(xiii) All transactions with the related parties are in compliance with Sections 177 and 188 of the Companies Act, 2013 where
applicable and the details have been disclosed in the Financial Statements etc, as required by the applicable Accounting
Standards.

(xiv) (a) In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its
business.
(b) We have considered, the internal audit reports for the year under audit, issued till date .
(xv) The Company has not entered into any non-cash transactions with Directors or persons connected with him.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.Hence
reporting under clause 3(xvi)(a),(b) and (c) of the Order is not applicable.
(b) In our opinion, there is no core Investment Company within Group (as defined in the Core Investment companies
(Reserve Bank Directions,2016) and accordingly reporting under clause 3(xvi)(d) of the order is not applicable.
(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding
financial year.
(xviii)There has been no resignation of the statutory auditor of the Company during the Year.
(xix) On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payments of financial
liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and
Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our
attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that
Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of
the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give
any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will
get discharged by the Company as and when they fall due.
(xx) (a) The Company has not transferred the amount remaining unspent on CSR Expenditure in respect of other than ongoing
projects, to a fund specified in schedule VII to the Companies Act,2013 till the date of our report. However the time
period for such transfer ie six months of the expiry of the financial year as permitted under the second proviso to
subsection (5) of section 135 of the act,has not elapsed till the date of our Report.
(b) There are no unspent amount towards Corporate Social responsibility (CSR) on ongoing projects requiring a transfer to
a special account in compliance with provisions of sub section (6) of section 135 of the said act.

N R Suresh
Partner
Date: 13.05.2022 UDIN:22021661AIXLJQ1542

ANNEXUR E – C TO THE INDEPENDENT AUDITOR’S REPORT
Directions indicating the areas to be examined by the Auditors during the course of audit of annual accounts of Hindustan
Aeronautics Limited for the year 2021-22 issued by the Comptroller & Auditor General of India under Section 143(5) of the
Companies Act, 2013.
S. No. Areas Examined Observation/Finding

1. Whether the company has system in place Yes. The Company has ERP System in place and the accounting
to process all the accounting transactions entries are generated in the System as and when transaction are
through IT system? If yes, the implications of made. The ERP system is not linked to Internet and the modules in
processing of accounting transactions outside the ERP system are not interlinked. In view of the same some Journal
IT system on the integrity of the accounts Entries are required to be made to account for certain adjustment
along with the financial implications, if any, / correction derived basically from the System and then fed in to
may be stated. the system through required accounting process with a maker and
Checker concept to ensure the integrity of the System.
2. Whether there is any restructuring of an Not applicable
existing loan or cases of waiver/write off of
debts/loans/interest etc. made by a lender to
the company due 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 for statutory Auditor of Lender
Company)
3. Whether funds (grants/subsidy etc.) received/ The Company has received a sum of ` 13229 lakhs from Ministry of
receivable for specific schemes from Central/ defence (MOD),Government of India (GOI),towards investments by
State Government or its agencies were the Company in M/S Multirole Transport Aircraft Limited (MTAL).out
properly accounted for/utilized as per its term of the above, the company has till date invested a sum of ` 11347
and conditions? List the cases of deviation. lakhs (PY 11347 Lakhs).The balance of ` 1882 lakhs repaid during
FY 2020-21.Interets @ 6.85% has been provided on the unutilised
portion till June 2020 Shown under other Financial liabilities.

N R Suresh
Partner
Date: 13.05.2022 UDIN:22021661AIXLJQ1542

Standalone Balance Sheet as at March 31, 2022
(` in Lakhs)
Particulars Note As at As at As at
No. 31st March 31st March 1st April
2022 2021 2020
ASSETS
Non-current assets
(a) Property, Plant and Equipment 1
Gross Block 1A 1061683 1020529 939541
Less: Accumulated Depreciation 1B 469698 399144 328805
Less: Impairment 1C 0 0 0
Net Block 591985 621385 610736
(b) Capital work-in-progress 2 94801 66215 73469
(c) Investment Property 3
Gross Block 3A 4 4 4
Net Block 3 3 3
(d) Goodwill 4
(e) Other Intangible assets 5
Gross Block 5A 337536 295628 250556
Less: Accumulated Amortization 5B 200703 161395 116429
Net Block 83826 94407 100686
(f) Intangible Assets under Development 6
Gross Block 6A 157859 129640 119282
Net Block 152384 128627 118269
(g) Financial Assets
(i) Investments in Subsidiaries and Joint Ventures 7 11012 10569 11714
(ii) Investments 7A 118402 94926 88345
(iii) Trade Receivables 8 0 0 0
(iv) Contract Assets 8A 0 0 0
(v) Loans 9 623 750 956
(vi) Other Financial Assets 10 40330 37639 37653
(h) Deferred tax Assets (Net) 11 56557 5235 47011
(i) Other Non-Current Assets 12 181464 70635 62784
Total non-current assets 1331387 1130391 1151626
Current assets
(a) Inventories 13 1436358 1668856 1957665
(b) Financial Assets
(i) Investments 14 0 0 0
(ii) Trade receivables 15 464155 566955 1126395
(iii) Contract Assets 15A 780865 844768 786227
(iv) Cash and Cash Equivalents 16 306914 714148 27783
(v) Bank Balances other than Cash and Cash Equivalents 17 1127447 2485 2008
(vi) Loans 18 806 774 1176
(vii) Other Financial Assets 19 102474 101035 117110
(c) Current Tax Assets (Net) 20 0 0 3531
(d) Other current Assets 21 280882 139563 129213
Total current assets 4499901 4038584 4151108
Assets held for Sale Clause 45D 811 0 0
of Note 49
Total Assets 5832099 5168975 5302734

Standalone Balance Sheet as at March 31, 2022
(` in Lakhs)
2022 2021 2020
EQUITY AND LIABILITIES
Equity
(a) Equity Share capital 22 33439 33439 33439
(b) Other Equity 23 1892961 1503379 1287033
Total equity 1926400 1536818 1320472
LIABILITIES
Non-current liabilities
(a) Financial Liabilities
(i) Borrowings 24 0 0 0
(ia) Lease Liabilities 24A 178 174 170
(ii) Trade payables 25
A) total outstanding dues of micro enterprises and 0 0 0
small Enterprises
B) total outstanding dues of creditors other than micro 0 0 0
enterprises and Small Enterprises
Sub Total- Trade payables 0 0 0
(iii) Other Financial Liabilities 26 52468 49329 54986
(b) Provisions 27 124824 124105 127346
(c) Deferred Tax Liabilities (Net) 28 0 0 0
(d) Other Non-Current Liabilities 29 1226244 917130 691278
Total non-current liabilities 1403714 1090738 873780
Current Liabilities
(a) Financial liabilities
(i) Borrowings 30 0 907 588650
small enterprises
enterprises and small enterprises
Sub Total-Trade payables 255977 226073 409749
(iii) Other Financial liabilities 32 185024 194982 249425
(b) Other Current Liabilities 33 1475484 1683668 1298456
(c) Provisions 34 505578 393527 504118
(d) Current Tax Liabilities (Net) 35 79914 42254 58076
Total current liabilities 2501985 2541419 3108482
Total Equity and Liabilities 5832099 5168975 5302734
Significant Accounting Policies and accompanying Notes No. 1 to 49 form an integral part of the Financial Statements
As per our Report of even date
For Maharaj N R Suresh and Co. LLP (C. B. Ananthakrishnan) (R. Madhavan)
Chartered Accountants Director (Finance) & CFO Chairman & Managing Director
Firm Registration No. 001931S/S000020 DIN: 06761339 DIN: 08209860
CA N R Suresh (G. V. Sesha Reddy)

Partner Company Secretary
Membership No. 021661
Place: Bangalore
Date: 13.05.2022

Standalone Statement of Profit and Loss
for the year ended 31st March 2022
(` in Lakhs)
S. Particulars Note For the Year For the Year
No. No. ended ended
31st March 2022 31st March 2021
REVENUE
I Revenue from Operations 36 2462021 2288236
II Other Income 37 98634 35789
III Total Income (I+II) 2560655 2324025
IV EXPENSES
Cost of Materials Consumed 38 875525 791915
Purchases of Stock-in-Trade 38A 65668 82116
Changes in Inventories of Finished Goods, 39 59229 245827
Stock-in-Trade, Work-in-Progress and Scrap
Employee Benefits Expense 40 458983 429102
Finance Costs 41 5814 25911
Depreciation and Amortization Expense 42 110987 115719
Impairment Loss 42A 17643 6385
Other Expenses 43 120874 120723
Direct Input to WIP / Expenses Capitalised 44 32315 25977
Provisions 45 373918 146208
Total Gross Expenses 2120956 1989883
Less: Expenses relating to Capital and Other Accounts 46 83416 93394
Total expenses (IV) 2037540 1896489
V Profit/(Loss) before Exceptional items and Tax (III-IV) 523115 427536
VI Exceptional Items 0 202
VII Profit/(loss) before tax (V+VI) 523115 427738
VIII Tax expense:
(1) Current Tax 190000 64500
(2) Earlier YearTax Refund -119273 -4933
(3) Deferred Tax -56262 44226
IX Profit (Loss) for the period from Continuing Operations (VII-VIII) 508650 323945
X Profit/(loss) from Discontinued Operations 0 0
XI Tax expense of Discontinued Operations 0 0
XII Profit/(loss) from discontinued operations (after tax) (X-XI) 0 0
XIII Profit/(loss) for the period (IX+XII) 508650 323945
XIV Other Comprehensive Income (OCI)
A (i) Items that will not be reclassified to profit or loss 47 19627 -9733
(ii) Income tax benefit/(expense) on the items that will not
be reclassified to Profit or Loss -4940 2450
B (i) Items that will be reclassified to profit or loss 48 0 0
(ii)
Income tax benefit/(expense) on items that will be 0 0
reclassified to Profit or Loss

Standalone Statement of Profit and Loss
(` in Lakhs)
S. Particulars Note For the Year For the Year
No. No. ended ended
Total Other Comprehensive Income (A + B) 14687 -7283
XV Total Comprehensive Income for the period (XIII+XIV) 523337 316662
(Comprising Profit (Loss) and Other Comprehensive Income
for the period)
XVI Earnings per Equity Share (for Continuing Operations): Clause 47
of Note 49
(1) Basic (`) 152.11 96.88
(2) Diluted (`) 152.11 96.88
XVII Earnings per Equity Share (for Discontinued Operations):
(1) Basic (`)
(2) Diluted (`)
XVIII Earnings per Equity Share (for Continuing & Discontinued
Operations):
(1) Basic (`) 152.11 96.88
(2) Diluted (`) 152.11 96.88

Place: Bangalore
Date: 13.05.2022

st
Standalone Statement of Changes in Equity for the year ended 31 March 2022
A. Equity Share Capital
(` in Lakhs)
Particulars Balance as at Changes in Equity Share Capital due to Restated Balance as at Changes in Equity Share Capital for Balance as at
1 April, 2021 prior period errors 1 April, 2021 the year ended 31 March, 2022 31 March, 2022
Equity Share Capital 33439 0 33439 0 33439
Equity Share Capital (` in Lakhs)

Particulars Balance as at Changes in Equity Share Capital due to Restated Balance as at Changes in Equity Share Capital for the Balance as at
1 April, 2020 prior period errors 1 April, 2020 year ended 31 March, 2021 31 March, 2021

B.Other Equity (Refer Note 23)
(` in Lakhs)
Particulars Other Equity Total
Reserves and Surplus Other Comprehensive Income Other
Research and Capital General Retained Remeasure- Exchange differences in Equity
Development Redemption Reserve earnings ments of net translating the financial
Reserve Reserve defined benefit statements of a foreign
liability/ asset operation
Balance as at 1 April, 2021 133727 14761 1354875 16 1503379
Changes in Other Equity due to changes in accounting policy 0
or prior period errors
Restated Balance at 1 April, 2021 133727 14761 1354875 0 0 16 1503379
Changes in Other Equity for the year ended 31 March, 2022
Profit for the year ended 31 March, 2022 508650 508650
Items that will not be reclassified to profit or loss 19627 0 19627
Remeasurements of the net defined benefit liability/asset 14687 14687
Income tax relating to items that will not be reclassified to profit or loss -4940 0 -4940
Transfer to Retained Earnings -14687 -14687
Total comprehensive income for the year ended 31 March, 2022 523337 0 0 523337
Current year transfer 31596 31596
Transfer to General Reserve on utlization -3985 -3985
Surplus Transferred from Statement of Profit and Loss 357986 357986
Transfer from Research & Development Reserve 3985 3985
Transfer to Research & Development Reserve -31596 -31596
Interim Dividend -133755 -133755
Transfer to General Reserves -357986 -357986
Balance as at 31 March, 2022 161338 14761 1716846 0 0 16 1892961
st
Standalone Statement of Changes in Equity for the year ended 31 March 2022
(` in Lakhs)
Particulars Other Equity Total
Reserves and Surplus Other Comprehensive Income Other
Research and Capital General Retained Remeasure- Exchange differences in Equity
Development Redemption Reserve earnings ments of net translating the financial
Reserve Reserve defined benefit statements of a foreign
liability/ asset operation
Balance as at 1 April, 2020 108732 14761 1226863 -63853 16 1286519
Changes in Other Equity due to changes in accounting policy or prior 514 514
period errors
Restated Balance at 1 April, 2020 108732 14761 1227377 0 -63853 16 1287033
Changes in Other Equity for the year ended 31 March, 2021
Profit for the year ended 31 March, 2021 323945 323945
Items that will not be reclassified to profit or loss -9733 -9733
Remeasurements of the net defined benefit liability/asset -7283 -7283
Income tax relating to items that will not be reclassified to profit or loss 2450 2450
Transfer to Retained Earnings 7283 7283
Total comprehensive income for the year ended 31 March, 2021 316662 0 0 316662
Transfer from Other Comprehensive Income -63853 -63853
Transfer to Retained Earnings 63853 63853
Current year transfer 29599 29599
Transfer to General Reserve on utlization -4604 -4604
Surplus Transferred from Statement of Profit and Loss 122894 122894
Transfer from Research & Development Reserve 4604 4604
Transfer to Research & Development Reserve -29599 -29599
Final Dividend -100316 -100316
Transfer to General Reserves -122894 -122894
Balance as at 31 March, 2021 133727 14761 1354875 0 0 16 1503379

169
Place: Bangalore
Date: 13.05.2022
Standalone Statement of Cash Flows
(` in Lakhs)
SI. Particulars For the Year For the Year
No. ended ended
A Cash flow from Operating activities
Profit After Tax 508650 323945
Adjustments to reconcile net profit to net cash provided by operating
activities
Income Tax expense 14465 103793
(Gain)/Loss on sale of Property, Plant & Equipment -157 -12
Finance cost 247 20436
Interest Income -42438 -8802
Dividend Income -196 -111
Net (Gain)/Loss on Fair Value Adjustment 313 64
Depreciation,amortization and impairment expense 128630 122104
Provision for Impairment in Value of Investments 557 1145
Provision for Doubtful Debts 105568 1426
Provision for Doubtful Claims 7120 3017
Provision for Replacement and Other charges 78729 21175
Provision for Warranty 51544 32561
Provision for Raw Materials and Components, Stores and Spare parts, Loose 56005 43009
Tools and Equipment, Construction Materials, Work-in-progress and Inventory -
Warranty
Provision for Liquidated Damages 74395 43875
Provision for Onerous Contract 0 -32183
Operating Profit Before Working Capital Changes 983432 675442
Adjustments for:
(Increase)/decrease in Trade Receivables 61135 499473
(Increase)/decrease in Loans, Financial Assets and Other Assets -161662 -10876
(Increase)/decrease in Inventories 176493 245800
Increase/(decrease) in Trade Payables 29904 -183676
Increase/(decrease) in Financial Liabilities, Provisions and Other Liabilities 20024 373778
Cash generated from Operations 1109326 1599941
Income Taxes Paid -105318 -87547
Net Cash (used in)/generated from Operating Activities (A) 1004008 1512394
B Cash flow from Investing activities
Purchase of Property, Plant & Equipment -79892 -65322
Purchase of Intangible Assets -70127 -55430
Proceeds from sale of Property, Plant & Equipment 317 123
Investment in Joint Ventures -1000 0
Purchase of other non current Investments -23476 -6581
Investment in short term deposits -1124962 -477
Interest Received 22607 7565
Dividend Received from Joint Ventures 196 111
Share application money refunded by Joint Venture 0 1000
Net Cash (used in)/generated from Investing Activities (B) -1276337 -119011

Standalone Statement of Cash Flows
(` in Lakhs)
No. ended ended
C Cash flow from Financing Activities
Repayment of Borrowings-Current (Net) -907 -585980
Payment of Lease Liabilities -7 -297
Interest paid -236 -20425
Dividend Paid -133755 -100316
Net Cash (used in)/generated from Financing Activities (C) -134905 -707018
D Effect of Exchange differences on translation of foreign currency cash 0 0
and cash equivalents
Net increase/(decrease) in Cash and Cash Equivalents (A+B+C+D) -407234 686365
Add: Cash and Cash Equivalents at the beginning of the year (Refer Note 16) 714148 27783
Cash and Cash Equivalents at the end of the year (Refer Note 16) 306914 714148
Notes:
1. The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in Indian Accounting Standard
7 “Statement of Cash Flow”
2. Cash & Cash equivalent include Short Term Deposits with Bank
3. Previous year figures are rearranged or regrouped wherever necessary
4. Cash and Cash Equivalents are available fully for use
5. The Cash flow statement as above inculdes CSR Expenditure. Refer Clause 55S of Note 49

Firm Registration No.001931S/S000020 DIN: 06761339 DIN: 08209860

Place: Bangalore
Date: 13.05.2022

Significant Accounting Policies for the financial year 2021-22
1. BASIS OF ACCOUNTING:
The Financial Statements are prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) as prescribed
under Section 133 of Companies Act, 2013 read with relevant rules of the Companies (Indian Accounting Standards)Rules.
2. USES OF ESTIMATES:
a) Preparation of financial statements in conformity with the recognition and the measurement principle of Ind AS requires
the management of the Company to make estimates, judgments and assumptions that affects the reported balances
of Assets and Liabilities, disclosure relating to contingent liabilities as on the date of the Financial Statements and the
reported amount of revenues and expense for the reporting period.
b) Estimates and the underlying assumption are reviewed on an ongoing basis. The revision to the accounting estimates, if
material is recognized in the period in which the estimates are revised.
c) Estimates and judgments made in applying accounting policies that have significant effect on the amounts recognized
in the financial statements are as follows:
i. Employee Defined benefit plans
The liabilities and costs for defined benefit plans are determined using actuarial valuations. The actuarial valuation
involves making assumptions. These assumptions include salary escalation rate, discount rates, expected rate of
return on assets and mortality rates.
ii. Provisions and contingencies
Assessments undertaken in recognising provisions and contingencies have been made as per the best judgment of
the management based on the current available information.
iii.
Income Taxes
The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the
purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/
recovered for uncertain tax positions.
3. PROPERTY, PLANT AND EQUIPMENT(PPE):

a) Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,
if any.
b) The cost includes purchase price, import duties and non-refundable purchase taxes after deducting trade discounts
and rebates and any cost directly attributable including borrowing cost on qualifying assets to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by the management.
c) Subsequent expenditure relating to PPE including major inspection costs, spare parts, standby and servicing equipment
are capitalized only when it is probable that future economic benefits associated with these will flow to the Company
and the cost of the item can be measured reliably.
d) In accordance with Ind AS 101-First Time Adoption of Indian Accounting Standards, the Company had chosen to
consider the carrying value for all its PPE as their deemed cost at the Opening Balance Sheet as at April 01, 2015.
e) Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the Companies
Act 2013. Where the useful life of the asset is not as per Schedule II of the Companies Act 2013, the same is disclosed
under Notes to Accounts.
f) PPE individually costing ` 50,000 and below are fully depreciated in the year of purchase.
g) Where part of an item of PPE with a cost significant in relation to the total cost of the item and have different useful
lives, they are treated as separate components and depreciated over their estimated useful life.

h) Certain items like Special Tools are amortized over the number of units of production expected to be obtained from the
asset based on technical assessment and management estimates depending on the nature and usage of the respective
assets.
i) CSR Assets are fully depreciated in the year of capitalization.
j) The cost and the related accumulated depreciation are eliminated from the Financial Statements upon sale or de-
recognition or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss
of the relevant period.
k) The estimated useful lives, residual values and depreciation / amortisation method are reviewed at the end of each
reporting period with the effect of changes in estimates accounted for on a prospective basis.
3.1: Capital Advances And Capital Work In Progress (Cwip)
a) Advances given towards acquisition of PPE outstanding at each Balance sheet date are disclosed as other Non-
current assets.
b) Cost of Assets not ready for its intended use as on the Balance sheet date is shown as CWIP. Such properties are
classified to the appropriate categories of PPE when completed and ready for its intended use.
c) Depreciation on such assets commence when the assets are ready for their intended use.
4. INVESTMENT PROPERTY
a) A property is considered as investment property only if the same is held for earning rentals and /or for capital appreciation
or both. Properties held by the Company (directly or indirectly) which are used in the production of supply of goods or
services for administrative purposes are not considered as Investment Property.
b) Investment Properties are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. In
accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards, the Company has chosen to consider
the carrying value for all its Investment Property recognized in its Indian GAAP financial statement as their deemed cost
as at the transition date viz, April 01, 2015.
c) Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the Companies
5. INTANGIBLE ASSETS
a) Intangible Assets controlled and from which future economic benefits are expected to flow and having useful life are
recognized at cost less any accumulated amortization and accumulated impairment losses, if any.
b) Development Costs having useful life and which will generate probable future economic benefits are recognized as an
intangible asset and amortised over production based on technical estimate and to the extent not amortized are carried
forward.
c) Expenditure on license fees, documentation charges etc, based on the definition criteria of intangible assets in terms of
reliability of measurement of cost and future economic benefits from the assets, are amortised over production based on
technical estimates, and to the extent not amortised, are carried forward.
d) The cost of software internally generated / acquired for internal use which is not an integral part of the related hardware,
is recognized as an intangible asset and is amortised over three years, on straight line method. Amortisation commences
when the asset is available for use.
e) Expenditure on Research is recognized as expenditure in the period in which it is incurred.
f) Wherever it is not possible to assess the useful life of an intangible asset (whether or not significant) the same is not
amortised. Impairment on such intangible assets are reviewed annually and when there is an indication of impairment,
the asset is impaired.

6. LEASE ACCOUNTING
6.1. The Company recognizes, at inception of a contract a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
6.2. The Company as a lessee
a) At the date of commencement of the lease, the Company recognizes a right-of-use (“ROU”) asset representing
its right to use the underlying asset for the lease term and a lease liability for all lease arrangements in which it is
a lessee except for leases with a term of 12 months or less (short term leases) and leases for which the underlying
assets is of low value. For such short term and assets of low value leases, the Company recognizes the lease
payment as an expense on a straight line basis over the term of the lease.
b) At commencement date the ROU asset is measured at cost. The cost of the ROU asset measured at inception shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date less any lease incentives received, plus any initial direct costs incurred. The ROU
assets are subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any.
c) The ROU assets are depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of ROU asset. The estimated useful lives of ROU assets are determined on the same basis
as those of PPE. Right-of-use assets are tested for impairment whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if any, is recognized in the statement of profit and loss.
d) At the commencement date, the Company measures the lease liability at the present value of the lease payments
that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease or, if
not readily determinable, using the Company’s incremental borrowing rate.
e) Lease liability and ROU asset are separately presented in the Balance Sheet and lease payments are classified as
financing cash flows. Short term lease payments and payments for leases of low value assets are classified as
operating cash flows.
6.3. Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease.
6.3.1 Finance Lease:
a) A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset to
the Lessee is classified as a finance lease. Title may or may not eventually be transferred.
b) At commencement date, an amount equal to the net investment in the lease is presented as receivable. The
interest rate implicit in the lease is used to measure the value of net investment in the lease.
c) The finance income is recognized over the lease term in the statement of profit and loss account so as to
reflect a constant periodic rate of return on the net investment in the lease.
d) The de-recognition and impairment requirement of the underlying asset is tested as per Ind AS 109- Financial
instruments.
e) Any modifications in the lease are accounted as a separate lease when the recognition criteria specified in
paragraph 79 of the standard are met.
6.3.2 Operating Lease:
a) Lease other than finance leases are operating leases.
b) The lease payment from operating leases are recognized as income on either a straight-line basis or another
systematic basic, if required.
c) The expenses including depreciation cost associated with earning of the lease income is recognized as an
expense.

d) Depreciation on underlying assets subject to operating leases are calculated on straight line basis over
estimated useful life as prescribed in Schedule II of the Companies Act, 2013.
e) Any modifications in the lease are accounted as a separate lease if the recognition criteria specified in the
standard is met.
6.4. Transition to Ind AS 116

a) Effective April 1, 2019, the Company has applied Ind AS 116 on Lease Accounting. Ind AS 116 replaces Ind AS
17. The Company has adopted Ind AS 116 using the cumulative effect method. The effect of initially applying
this standard is recognized at the date of initial application (i.e. April 1, 2019) and the comparative information
continues to be reported under Ind AS 17.
b) The Company has chosen the practical expedient provided by the standard to apply Ind AS 116 only to contracts
that were previously identified as leases under Ind AS 17 and therefore has not reassessed whether a contract is or
contains a lease at the date of initial application.
7. NON CURRENT INVESTMENTS

a) In accordance with Ind AS 101, First time adoption of Indian Accounting Standards, the Company has chosen to consider
the carrying amount of investment as their deemed cost as at the Opening Balance Sheet as at 01st April, 2015.
b) Investments are carried individually at cost less accumulated impairment in the value of such Investments.
c) Cost of Investment includes acquisition charges such as brokerage, fees and duties.
d) The Company reviews the book value of the investment on a quarterly basis and provides for diminution in the value of
the investment based on the net worth of the investee company.
e) Impairment in the value of investment is made only if in the opinion of management when there is a permanent fall in
value of investment.
8. IMPAIRMENT OF ASSETS
As at each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment.
If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognised and assets are
written down to their recoverable amount.
9. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Company recognizes all Financial Assets other than non-current investments and Financial Liabilities at Fair Value on
inception and subsequent measurements are done at amortised cost.
10. DEFERRED DEBTS

Unpaid installment payments under deferred payment terms for the cost of imported materials and tooling content of
the equipment / products sold are accounted as deferred debts from the customer and are recovered as and when the
installments are paid.
11. TRADE AND OTHER PAYABLES

Liabilities are recognized for the amounts to be paid for the goods / services received whether billed by the supplier or not.
12. INVENTORIES
a) Inventories are valued at lower of Cost and Net Realisable Value.
b) The cost of raw material excluding Goods-in-Transit, components and stores are assigned by using the weighted average
cost formula. Goods-in-Transit are valued at cost-to-date. In the case of Finished Goods, Stock-in-Trade and Work-In-

Progress, cost includes costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their
present location and condition. Cost includes Taxes and duties (other than Taxes and duties for which input credit is
available).
c) Provision for redundancy is assessed on ageing at a suitable percentage / level of the value of closing inventory of raw
material and components, stores and spare parts and construction material. Besides, wherever necessary, adequate
provision is made for the redundancy of such materials in respect of completed / specific projects and other surplus /
redundant material pending transfer to salvage stores.
d) Saleable / Disposable scrap is valued at Net Realisable Value.
e) Stores declared surplus / unserviceable / redundant are charged to revenue in the year of such identification.
f) Consumables issued from stores and lying unused at the end of the year are not reckoned as inventory.
13. REVENUE RECOGNITION

13.1. Manufacturing of Aircraft/Helicopter/Spares/Repair Contracts
a) Revenue on Sale of Goods and Services is recognized at a point in time when the Company satisfies the
performance obligation on transfer of control of the products to the Customer in an amount that reflects the
consideration the Company expects to receive in exchange for those products pursuant to the Contract with
customer. Revenue from service Warranty is recognized on straight line basis over the period of Warranty.
Transfer of Control happens on:
i. Acceptance by the buyer’s Inspector, by way of Signaling Out Certificate (SOC)
or
Acceptance by the buyer’s pilot, by way of Certificate of Conformity (COC), wherever, specifically required in
the contract,
in the case of Aircrafts/Helicopters,
ii. Acceptance by the Buyer’s inspection agency/SOC or as agreed to by the Buyer, in the case of Repair&
Overhaul of Aircraft/Helicopter/Engine, Rotables, Site repairs, Cat ’B’ repair servicing etc.,
iii. For other deliverables like Spares, Revenue is recognized based on the Acceptance by the buyer’s inspection
agency or as agreed to by the buyer.
b) In case of Performance Based Logistic Contracts, Revenue is recognized over a period of time, based on Helicopter
Availability Certificate, Jointly signed by Seller and Buyer.
c) Revenue is recognized based on the prices agreed with Customers. Where the prices are yet to be agreed/
determined, the revenue is recognised at the most likely amount based on past experience. Differential revenue,
if any, is recognised on receipt of approval / sanction.
13.2. Development Contracts
a) Revenue is recognized over a period of time on incurrence of expenditure identifiable to work orders:
i. where milestones have been defined, on achievement of milestone under the output method.
ii.
where milestones have not been defined, on incurrence of expenditure under the input method.
b) Where the customer’s sanction for revision is pending, the expenditure incurred is retained in work-in-progress/
intangible asset. Subsequent revenue is recognized on receipt of revised financial sanction from the customer.
13.3. Significant Financing Component
a) For the majority of the contracts, advance payments are received, prior to commencement of work and milestone
payments are paid in accordance with the terms of the contract.

b) Payments received from customers in advance are not considered to be a significant financing component as they
are given with the objective to protect the interest of the contracting parties.
13.4. Contract Modification
A contract modification exists when the change in scope is agreed but the corresponding change in price is not
determined. In such circumstances, revenue is recognized, based on the Company’s assessment of the estimated
change in the transaction price arising from the modification.
13.5. Other Income
Interest Income is accrued on a time proportion basis, by reference to the principal outstanding and at the effective
interest rate applicable.
Dividend income from investments is recognised when the right to receive payment has been established.
14. Receivables
a) Receivables represent the Company’s unconditional right to consideration under the contract. The right to consideration
is considered unconditional, if only passage of time is required before payment of that consideration is due.
b) Debts from the Government departments are generally treated as fully recoverable, based on past experience, and hence
in the opinion of Management there is no increase in credit risk of such financial assets.
c) Impairment on account of expected credit loss is being assessed on a case to case basis in respect of dues outstanding
for a significant period of time.
14.1. Contract Assets
Contract Assets represents the Company’s right to receive the consideration in exchange for the Goods or Services
that the Company has transferred to the Customer, when that right is conditioned on something other than passage
of time.
15. EMPLOYEE BENEFITS

a) Gratuity and Provident Fund are Defined Benefit Plans and the liability is provided on the basis of actuarial valuation in
respect of eligible employees and is remitted to the trust progressively.
b) Provision for Earned leave is a Defined Benefit Plan and the liability is provided on the basis of actuarial valuation.
c) Pension Scheme and Post Superannuation Group Health Insurance Scheme for employees are Defined Contribution
Plans and the contribution to the corpus of the same is made by the Company to the respective trust. The Company’s
liability is limited to the extent of contribution made to these trusts.
16. FOREIGN CURRENCY TRANSACTION/TRANSLATION

a) Initial Recognition:
On initial recognition, transaction in foreign currencies, entered into by the Company, are recorded in the functional
currency by applying to the foreign currency amount the spot exchange rate between the functional currency and the
foreign currency at the date of the transaction.
b) Measurement of Foreign currency items at reporting date:
Foreign currency monetary items are translated at closing exchange rates. Non- monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of transaction. Non-
monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date
when the fair value is measured.
c) Recognition of Exchange Difference:
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different
from those at which they are translated on initial recognition during the period or in previous financial statement is
recognized in statement of profit and loss in the period in which they arise.

17. INCOME TAXES
a) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of Income Tax Act,1961(the “Act”).
b) Deferred Tax is recognized using the Balance Sheet method, providing for temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
Tax Assets in excess of Deferred Tax Liability are recognized to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilized. Deferred Tax Assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
18. CLAIMS BY THE COMPANY

Claims on suppliers / underwriters / carriers towards loss / damages, claims for export subsidy, duty drawbacks, and claims on
Customs department for refunds are accounted when claims are preferred.
19. PROVISION AND CONTINGENT LIABILITIES

a) A provision is recognised, when the Company has the present obligation as result of past events and it is probable that
an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made.
b) Where no reliable estimate can be made or when there is a possible obligation or present obligations that may, but
probably will not, require an outflow of resources, disclosure is made as Contingent Liability. Expected reimbursement,
if any, is disclosed under Notes to Accounts.
c) When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.
19.1 PROVISION FOR WARRANTY
Provision for warranty is recognized on actuarial valuation for Manufacturing and Repair and Overhaul of Aircraft/
Helicopter/Engine/Rotables and Spares and development activities etc.
19.2 PROVISION FOR LIQUIDATED DAMAGES
Provision for Liquidated Damages is recognized when the expected date of delivery of Goods / rendering of Service in
respect of Manufacturing and Repair and Overhaul of Aircraft/Helicopter/Engine/Rotables, Spares and Development
activities etc is beyond the due date as per delivery schedule and at the rates specified in the Contract with the
Customer.
19.3 PROVISION FOR ONEROUS CONTRACTS
A provision for onerous contract is recognized when the expected benefits to be derived by the Company from the
contract are lower than the unavoidable cost of meeting its obligations under the contract. Before a provision is
established, the Company recognizes any impairment loss on the assets associated with that contract.
20. ESTIMATES AND ERRORS

The Company revises its accounting policies if the change is required due to a change in Ind AS or if the change will provide
more relevant and reliable information to the users of the financial statements. Changes in accounting policies are applied
retrospectively unless it is impracticable to apply.
A change in an accounting estimate that results in changes in the carrying amounts of recognised assets or liabilities or to
statement of profit and loss is applied prospectively in the period(s) of change.
When it is difficult to distinguish a change in an accounting policy from a change in an accounting estimate, the change is
treated as a change in an accounting estimate.
Discovery of material errors results in revisions retrospectively by restating the comparative amounts of assets, liabilities, and
equity of the earliest prior period in which the error is discovered. The opening balances of the earliest period presented are
also restated.

Significant Accounting Policies for the financial year2021-22
21. EVENTS AFTER THE REPORTING PERIOD
Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The
financial statements are adjusted for such events before authorisation for issue.
Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-
adjusting eventsafter the reporting date are not accounted.
22. The functional currency of the Company is Indian Rupee.

(C. B. Ananthakrishnan) (R. Madhavan)

Director (Finance) & CFO Chairman & Managing Director
DIN: 06761339 DIN: 08209860
(G. V. Sesha Reddy)

Company Secretary
Place: Bengaluru
Date: 13.05.2022

Notes to the Financial Statements for the year ended March 31, 2022
Note 1 - Plant, Property and Equipment
Note 1A - Gross Block - Plant, Property and Equipment
The changes in the carrying value of property, plant and equipment for the year ended 31st March 2022 are as follows:
(` in Lakhs)
Particulars Gross block Additions Reclassification Disposals Gross Block
as at /Adjustment As at
1st April 2021 31st March 2022
Own Assets:
Land -
- Leasehold 1 0 0 0 1
- Freehold 1947 0 0 0 1947
Buildings 125044 1662 -444 32 126230
Plant and Equipment 227224 9643 -50 715 236102
Furniture and Fixtures 8507 634 0 192 8949
Vehicles 8843 387 0 161 9069
Office Equipment 13325 1528 19 76 14796
Others
Assets used for CSR Activities 4525 0 0 0 4525
Roads and Drains 5814 95 0 0 5909
Water Supply 3863 1046 0 0 4909
Rail Road Sidings 0 0 0 0 0
Runways 1776 0 0 0 1776
Aircraft/Helicopters 32352 0 0 0 32352
Sub Total 433221 14995 -475 1176 446565
Special Tools 577933 28255 0 0 606188
Total Own Assets: 1011154 43250 -475 1176 1052753
Right -of -Use Asset:
Land 1267 0 -445 0 822
Buildings 8108 0 0 0 8108
Total Right -of -Use Asset: 9375 0 -445 0 8930
Total: 1020529 43250 -920 1176 1061683
The amount of contractual commitments for the accquisition of Property, Plant and Equipment is disclosed under Clause 3 of
Note 49
There is no charge or lein on Property, Plant and Equipment
Refer Clause 14 to 14.7, 55A & 55I of Note 49

Note 1B - Accumulated Depreciation - Plant, Property and Equipment
(` in Lakhs)
Particulars Provision Additions Reclassifi- Disposals Provisions Net Block Net Block
as at cation /Ad- as at as at as at
1st April justment 31st March 31st March 31st March
2021 2022 2022 2021
Own Assets:
Land -
- Leasehold 0 0 0 0 0 1 1
- Freehold 0 0 0 0 0 1947 1947
Buildings 22233 4131 -126 32 26206 100024 102811
Plant and Equipment 106928 18423 -28 652 124671 111431 120296
Furniture and Fixtures 7082 772 0 170 7684 1265 1425
Vehicles 4093 1021 0 101 5013 4056 4750
Office Equipment 10624 1168 76 61 11807 2989 2701
Others
Assets used for CSR Activities 4525 0 0 0 4525 0 0
Roads and Drains 3830 479 0 0 4309 1600 1984
Water Supply 1930 388 0 0 2318 2591 1933
Rail Road Sidings 0 0 0 0 0 0 0
Runways 1244 83 0 0 1327 449 532
Aircraft/Helicopters 10923 2864 0 0 13787 18565 21429
Subtotal 173412 29329 -78 1016 201647 244918 259809
Special Tools 225594 42059 0 0 267653 338535 352339
Total Own Assets: 399006 71388 -78 1016 469300 583453 612148
Right-of-Use Asset:
Land 91 21 -31 0 81 741 1176
Buildings 47 270 0 0 317 7791 8061
Total Right -of -Use Asset: 138 291 -31 0 398 8532 9237
Total: 399144 71679 -109 1016 469698 591985 621385
Refer Clause 14.8 of Note 49

Above Includes: As at 31st March 2022
Gross Value of Assets with M/s. Midhani 1195
Cumulative Depreciation in respect of Assets with M/s. Midhani 1195
0
As at 31st March 2022

Gross Value of Assets retired from Active Use 1264
Less : Cumulative Depreciated Value of Assets retired from Active Use. 1261
WDV of Assets Retired from Active Use. 3

The changes in the carrying value of property, plant and equipment for year ended 31st March 2021 are as follows:
(` in Lakhs)
Particulars Gross block Additions Reclassification / Disposals Gross Block
as at Adjustment As at
Land
- Leasehold 1 0 0 0 1
- Freehold 1947 0 0 0 1947
Buildings 114531 10513 0 0 125044
Plant and Equipment 216151 11283 0 210 227224
Vehicles 6568 2414 0 139 8843
Office Equipment 12033 1385 -3 90 13325
Others
Water Supply 3551 312 0 0 3863
Runways 1776 0 0 0 1776
Sub Total 407186 26560 0 525 433221
Special Tools 531088 46845 0 0 577933
Total Own Assets: 938274 73405 0 525 1011154
Land 1267 0 0 0 1267
Buildings 0 8108 0 0 8108
Total Right -of -Use Asset: 1267 8108 0 0 9375
Total: 939541 81513 0 525 1020529
The amount of contractual commitments for the accquisition of property, plant and equipment is disclosed under Clause 3 of
Note 49
Refer Clause 14 to 14.7, 55A & 55I of Note 49

Note -1B-Accumulated Depreciation- Plant, Property and Equipment
(` in Lakhs)
as at cation /Ad- as at as at as at
1st April justment 31st March 31st March 31st March
2020 2021 2021 2020
Own Assets:
Land -
- Leasehold 0 0 0 0 0 1 1
- Freehold 0 0 0 0 0 1947 1947
Buildings 18261 3972 0 0 22233 102811 96270
Plant and Equipment 88313 18825 0 210 106928 120296 127838
Vehicles 3369 785 0 61 4093 4750 3199
Office Equipment 9006 1702 -2 82 10624 2701 3027
Others
Roads and Drains 3278 552 0 0 3830 1984 2300
Water Supply 1596 334 0 0 1930 1933 1955
Runways 1161 83 0 0 1244 532 615
Subtotal 143920 29906 0 414 173412 259809 263266
Special Tools 184810 40784 0 0 225594 352339 346278
Total Own Assets: 328730 70690 0 414 399006 612148 609544
Right-of-Use Asset:
Land 75 16 0 0 91 1176 1192
Buildings 0 47 0 0 47 8061 0
Total Right -of -Use Asset: 75 63 0 0 138 9237 1192
Total: 328805 70753 0 414 399144 621385 610736


Note 2 - Capital Work in Progress

(` in Lakhs)
Particulars As at As at As at
31st March 2022 31st March 2021 1st April 2020
Buildings 52777 38824 38373
Plant and Equipment 19470 17361 17834
Furniture and Fixtures 0 0 23
Office Equipment 150 7 38
Water Supply 64 102 147
Roads and Drains 0 0 0
Plant and Equipment under Inspection and in Transit 1624 1300 648
Special Tools 20716 8621 16406
Gross Total 94801 66215 73469
Less: Provision for Capital Work in Progress 0 0 0
TOTAL 94801 66215 73469
Refer Clause 8C, 55E & 55F of Note 49 for further disclosures on Capital work in Progress
Note 3 - Investment Property

The changes in the carrying value of investment property for the year ended 31st March 2022 are as follows:
Note 3A - Gross Block - Investment Property

(` in Lakhs)
Buildings 4 - - - 4
Total 4 - - - 4
Refer Clause 51 of Note 49

Note 3B - Accumulated Depreciation - Investment Property
(` in Lakhs)
Particulars Provision Additions Reclassi- Disposals Provisions Net Block Net Block
As at fication / As at As at As at
1st April 2021 Adjustment 31st March 2022 31st March 2022 31st March 2021
Buildings 1 - - - 1 3 3
Total 1 - - - 1 3 3

The changes in the carrying value of investment property for year ended 31st March 2021 are as follows:

(` in Lakhs)
As at /Adjustment As at
Buildings 4 - - - 4
Total 4 - - - 4

(` in Lakhs)
Buildings 1 - - - 1 3 3
Total 1 - - - 1 3 3
Note 5 - Other Intangible assets

The changes in the carrying value of other intangible assets for the year ended 31st March 2022 are as follows:
Note 5A - Gross Block - Other Intangible Assets

(` in Lakhs)
Particulars As at Additions Adjustment* As at
Licence Fees 136659 6454 0 143113
Computer Software 7191 684 0 7875
Documentation 37768 0 0 37768
Development Expenditure 114010 34770 0 148780
Others 0 0 0 0
Total 295628 41908 0 337536
*The Intangible assets under development has been completed and transferred to other intangible assets (Refer Note 6A)

Note 5B - Accumulated Amortization - Other Intangible assets
(` in Lakhs)
Particulars As at Amortisation Adjustment As at
Licence Fees 73265 1474 0 74739
Others 0 0 0 0
Total 161395 39308 0 200703
Note 5C - Impairment Loss - Other Intangible assets

(` in Lakhs)
Particulars As at Impairment Loss Adjustment As at
Licence Fees 0 12781 0 12781
Others 0 0 0 0
Total 39826 13181 0 53007


(` in Lakhs)
Licence Fees 136443 216 0 136659
Others 0 0 0 0
Total 250556 12865 32207 295628

(` in Lakhs)
Licence Fees 63297 9968 0 73265
Others 0 0 0 0
Total 116429 44966 0 161395

(` in Lakhs)
Licence Fees 0
Computer Software 0
Documentation 0
Others 0
Total 33441 6385 0 39826
Note 6 - Intangible Assets under Development

The changes in the carrying value of intangible assets under development for the year ended 31st March 2022 are as follows:
Note 6A - Gross Carrying cost - Intangible assets under Development

(` in Lakhs)
Development Expenditure 129640 28219 157859
Total 129640 28219 157859
*The Intangible assets under development has been completed and transferred to other intangible assets: Nil
The amount of contractual commitments for the accquisition of intangible assets is disclosed under Clause 3 of Note 49.
Refer Clause 55G & 55H of Note 49 for further disclosures on Intangible assets under development
Note 6B - Accumulated Amortization - Intangible assets under Development

(` in Lakhs)
Development Expenditure - - - -
- - - -
Note 6C - Impairment Loss - Intangible assets under Development

(` in Lakhs)
Development Expenditure 1013 4462 - 5475
Total 1013 4462 - 5475
-

The changes in the carrying value of intangible assets underdevelopment for year ended 31st March 2021 are as follows:

(` in Lakhs)
Development Expenditure 119282 42565 -32207 129640
Total 119282 42565 -32207 129640
The amount of contractual commitments for the accquisition of intangible assets is disclosed under Clause 3 of Note 49.
Refer Clause 55G & 55H of Note 49 for further disclosures on Intangible assets under development

(` in Lakhs)
Development Expenditure
Total

(` in Lakhs)
Particulars As at Impairment Adjustment As at
1st April 2020 Loss 31st March 2021
Development Expenditure 1013 1013
Total 1013 1013
Note 7- Financial Asset - Investments - Subsidiaries & Joint Ventures at Cost less Provision
(` in Lakhs)
INVESTMENTS AT COST LESS PROVISION (UNQUOTED)
Investment in Equity Instruments
1. Investment in Subsidiaries
Naini Aerospace Limited - 5,00,00,000 (5,00,00,000 PY) 5000 5000 5000
Shares of ` 10 FV each fully paid
Less Provision for Impairment in value of Investment 5000 4546 3466
Net - Naini Aerospace Limited 0 454 1534
Indo Russian Helicopters Limited (IRHL) 5,05,000 ( 5,05,000 505 505 505
PY) Shares of ` 100 FV each fully paid

(` in Lakhs)
Net -Indo Russian Helicopters Limited (IRHL) 383 400 440
Total In Equity of Subsidiaries (1) 383 854 1974
2. Investment in Joint Ventures
Ae-HAL Software Ltd-29,40,000 (29,40,000-P.Y) shares of
B 294 294 294
`10 FV each fully paid
Net -BAe-HAL Software Ltd 233 294 294

Safran HAL Aircraft Engines Private Ltd - 11,40,000 1140 1140 1140
(11,40,000-P.Y) Shares of ` 100 F.V. each fully paid
Net - Safran HAL Aircraft Engines Private Ltd 1140 1140 1140
Indo Russian Aviation Ltd - 9,36,525 (9,36,525-P.Y) shares of 94 94 94
` 10 FV each fully paid
Net - Indo Russian Aviation Ltd. 94 94 94
ALBIT Avionics Pvt Ltd -3,82,500(3,82,500-P.Y) Shares of `
H 383 383 383
100 FV each fully paid
Net - HALBIT Avionics Pvt. Ltd. 0 0 0
AL Edgewood Technologies Pvt Ltd 3,00,000(3,00,000-P.Y)
H 300 300 300
Net- HAL Edgewood Technologies Pvt. Ltd. 0 0 0
S AMTEL HAL Display Systems Ltd-1,60,000 (1,60,000-P.Y) 160 160 160
Net - SAMTEL HAL Display Systems Ltd 0 0 0
INFOTECH HAL Ltd - 20,00,000 ( 20,00,000-P.Y) Shares of ` 200 200 200
10 FV each fully paid
Net- INFOTECH HAL Ltd. 0 0 0

HATSOFF Helicopter Training Pvt Ltd -3,84,04,205 3840 3840 3840
(3,84,04,205 P.Y) Shares of ` 10 FV each fully paid
Net- HATSOFF Helicopter Training Pvt. Ltd. 0 0 0
T ATA HAL Technologies Ltd -50,70,000 (50,70,000 P.Y.) 507 507 507
Shares of ` 10 each fully paid
Net- TATA HAL Technologies Ltd. 0 0 0

(` in Lakhs)
International Aerospace Manufacturing Pvt Ltd - 42,50,000 4250 4250 4250
(42,50,000 - P.Y) Shares of ` 100 FV each fully paid
Net- International Aerospace Manufacturing Pvt Ltd 3395 3395 3395
Multirole Transport Aircraft Ltd. - 113,46,564 (113,46,564 11347 11347 11347
P.Y.) Shares of ` 100 FV each fully paid
Net- Multirole Transport Aircraft Ltd. 4669 4669 4669
elicopter Engines MRO Pvt Ltd - 15,09,986 ( 5,09,986 P.Y.)
H 1510 510 510
Net- Helicopter Engines MRO Pvt Ltd 1098 123 148
Total In Equity of Joint Ventures (2) 10629 9715 9740
TOTAL (1+2) 11012 10569 11714
Disclosure
(i) Aggregate amount of Quoted Investment and Market
Value.
(ii) Aggregate amount of Unquoted Investments. (net) 11012 10569 11714
(iii) Aggregate amount of impairment in value of investments 18518 17961 16816
Refer Clause 45B & 45E of Note 49 for further details on Investment in Joint Ventures
Note 7A - Financial Asset - Investments at Cost

(` in Lakhs)
A. Investments in Structured Entities (UNQUOTED)
a) HAE Co-operative Society of 25 (25P.Y) Shares of ` 100 0 0 0
FV each fully paid*
b) Satnam Apartment Ltd - 41 (41 P.Y) Shares of ` 100 each 0 0 0
at cost for acquisition of a Flat**
c) Aerospace & Aviation Sector Skill Council (AASSC) - 125 13 13 13
(125 P.Y.) Shares of ` 10000 FV each fully paid
d) Defence Innovation Organisation - 50 (P.Y 50) Shares of 1 1 1
Total In Equity of Others (A) 14 14 14
B. Other Investments (UNQUOTED)
LIC of India (For Funding Vacation Leave) 118388 94912 88331
Total In Other Investments (B) 118388 94912 88331
TOTAL (A+B) 118402 94926 88345
* Total ` 2500 (P.Y. ` 2500) (absolute figure) are held by Kanpur division which is rounded off.
** Total ` 7220 (P.Y. ` 7220) (absolute figure) are held by Nashik division which is rounded off.

(` in Lakhs)
(i) Aggregate amount of Quoted Investment and Market Value. - - -
(iii) Aggregate amount of impairment in value of investments Nil Nil Nil
Note 8 - Financial Asset - Trade Receivables

(` in Lakhs)
Trade Receivables
Considered Good - Secured 0 0 0
Considered Good - UnSecured 0 0 0
Receivables which have significant increase in credit risk 0 0 0
Credit Impaired 0 0 0
0 0 0
Less: Allowance for Doubtful Debts 0 0 0
TOTAL 0 0 0
Note 8A- Financial Asset-Contract Assets

(` in Lakhs)
Contract Assets
Unbilled Revenue 0 0 0
TOTAL 0 0 0
Note 9- Financial Asset- Loans

(` in Lakhs)
A. Considered Good-Secured
a) Loans to Related Parties 0 0 0
b) Others
Loans and advances to employees 121 153 187
Sub-Total (A) 121 153 187

(` in Lakhs)
B. Considered Good-Unsecured
b) Others
Sub-Total (B) 502 597 769
C. Loans which have significant increase in credit risk
Sub-Total (C)
D. Loans - Credit Impaired
Sub-Total (D)
TOTAL (A +B+C+D) 623 750 956
Note 10 - Other Financial Assets

(` in Lakhs)
A. Claims Receivable Unsecured*
Receivable - Credit Impaired 14385 19211 22465
14385 19211 22465
Less: Provision for Doubtful Claims 14385 19211 22465
Sub-Total (A) 0 0 0
B) Security Deposit
Govt Departments for Customs Duty and for Supplies 12 12 12
Public Utility Concerns 2719 2747 2649
Others 1237 1104 1179
Sub-Total (B) 3968 3863 3840
C. Balances with Bank
Bank deposit with more than 12 Months maturity** 1 1 1
Sub-Total (C) 1 1 1
D. Others
Deferred Debts 36361 33775 33812
Sub-Total (D) 36361 33775 33812
TOTAL (A +B +C+D) 40330 37639 37653
*Above balances of Claims Receivable include balances with 437 778 778
related parties (Refer Receivables of Clause No.45A( e) of Note 49)
*Above balances of Provision for Doubtful Claims include balances 437 778 778
with related parties (Refer Receivables of Clause No.45A(l) of Note
49)
**Fully Earmarked for Committed Liabilities of more than 12 1 1 1
months

Note 11 - Deferred Tax Assets (Net)
(` in Lakhs)
The tax effect of significant temporary differences that resulted in
deferred tax assets:
As per last Balance Sheet 5235 47011 47011
Add / (Less): Current Year's Assets 51322 -41776
TOTAL 56557 5235 47011
Refer Clause 40 A of Note 49 for break-up of Deferred Tax Assets and Liabilities
Note 12 - Other Non - Current assets

(` in Lakhs)
A. Capital Advances 22200 16328 27148
B. Advance Other than Capital Advances
Advances against Goods and Service 453 994 337
Advances against Special Tools 0 0 248
Other Advances 840 1037 440
23493 18359 28173
C. Others
Balances with Revenue Authorities
Income tax 139094 34441 19436
Others-under dispute 18843 17808 15134
Prepaid Expenses 34 27 41
TOTAL (A+B+C) 181464 70635 62784
Note 13 - Inventories
(` in Lakhs)
Inventories ( At Lower of Cost and Net Realisable Value )#
(i) Raw Materials and Components 988266 1094149 1025938
Less: Provision for Redundancy 151814 125941 85783
836452 968208 940155
(ii) Work-in-Progress 525084 585052 827789
498495 585052 827789
(iii) Finished Goods 0 0 0
(iv) Stock-in-Trade 2994 2244 5249
(v) Stores and Spares 33259 33684 36868
28606 29707 33651

(` in Lakhs)
(vi) Loose Tools 10747 9923 10382
9972 8613 8936
(vii) Construction Materials 53 51 71
41 43 70
(viii) Disposable Scrap (at Net Realisable Value) 710 721 804
(ix) Goods under Inspection and in Transit
Raw material and Components 44718 59950 122291
Stores and Spares 2114 798 1048
Loose Tools 124 106 372
46956 60854 123711
(x) Inventory - Warranty 14525 15419 19381
12132 13414 17300
TOTAL 1436358 1668856 1957665
(#) includes those issued to Sub-Contractors for Job Works 12256 18062 29553
Inter-division transfers in Transit which are not considered for Inter 56 0 0
Divisional Sales, included in above balance
Note 14 - Financial Asset- Investments

(` in Lakhs)
INVESTMENTS AT COST LESS PROVISION (UN-QUOTED)
TOTAL 0 0 0
Disclosure
(i) Aggregate amount of Quoted Investment and Market Value.
(ii) Aggregate amount of Unquoted Investments. 0 0 0
(iii) Aggregate amount of impairment in value of investments

Note 15- Financial Asset-Trade Receivables
(` in Lakhs)
Trade Receivables*
Considered Good - Unsecured 464155 566955 1126395
478212 580461 1140071
TOTAL 464155 566955 1126395
*Above balances of trade receivables include balances with 556 760 914
related parties (Refer Receivables of Clause No.45A(e) of Note 49).
Refer Clause 53 (a) of Note 49 for ageing schedule of Trade
Receivables

(` in Lakhs)
Contract Assets
TOTAL 780865 844768 786227
Refer Clause 53 (b) of Note 49 for ageing schedule of Contract Assets
Refer Clause 23 (B) of Note 49
Note 16 - Financial Asset- Cash & Cash Equivalents

(` in Lakhs)
A. Balances with Bank
In Current Account 116912 64148 27783
In Short Term Deposits 190000 650000 0
Term Deposits with original maturity of less than 3 months 0 0 0
B. Cheques, Drafts on Hand 2 0 0
C. Cash on Hand 0 0 0
TOTAL (A+B+ C) 306914 714148 27783

Note-17 - Financial Asset- Bank Balances other than Cash and Cash Equivalents
(` in Lakhs)
Term Deposits with original maturity for more than 3 months but 1127394 2236 1993
less than 12 months
Earmarked balances with banks for Unpaid Dividend 53 249 15
TOTAL 1127447 2485 2008
Note 18-Financial Asset- Loans

(` in Lakhs)
A. Considered Good -Secured
b) Others 0 0 0
Sub -Total (A) 171 211 282
B. Considered Good -Unsecured
b) Others 0 0 0
Sub -Total (B) 635 563 894
C. Loans which have Significant Increase in credit risk
Sub -Total (C)
Sub -Total (D)
TOTAL (A +B+C+D) 806 774 1176
Note 19- Other Financial Assets

(` in Lakhs)
Claims Receivable
Unsecured Considered Good 71015 90465 106994
Receivable which have Significant Increase in Credit Risk 0 0 0
87896 100304 116425
Sub-Total 71015 90465 106994

(` in Lakhs)
Security Deposit
Others 660 640 710
Interest Accrued and Due on Investment with LIC of India 0 0 16
Interest Accrued and not Due 21176 1345 108
Current Maturities of Deferred Debt 9583 8543 8234
Share Application Money Paid 0 0 1000
TOTAL 102474 101035 117110
Above balances of Claims Receivable include balances with related 19264 19870 16793
parties (Refer Receivables of Clause No.45A( e) of Note 49)
Above balances of Provision for Doubtful Claims include balances 1357 1077 702
with related parties (Refer Receivables of Clause No.45A(l) of Note 49)
Refer Clause 43(G) of Note 49
Note-20 Current Tax Assets (Net)

(` in Lakhs)
Current Tax (Net) 0 0 3531
TOTAL 0 0 3531
Note 21- Other Current Assets

(` in Lakhs)
A. Advance Other than Capital Advances
Advances against Goods and Services 224018 91336 109673
Less: Provision for Bad and Doubtful 19 19 19
Other Loans and Advances 740 260 527
Advances to Related Parties* 5675 250 70
B. Others
Unamortised discount on commercial paper 0 0 1763
Balances with revenue Authorities
Income tax 0 0 0
Others 0 0 0
Balance with GST Electronic Ledger 47698 44971 14489
Revenue Stamps 0 0 0
Balances in Franking Machine 4 4 3
TOTAL 280882 139563 129213
* Includes advance of ` 5640 lakhs towards HAL employees Gratuity fund

EQUITY
Note 22- Equity Share Capital
(` in Lakhs)
Authorised Capital 60000 60000 60000
60,00,00,000 Equity Shares of ` 10 each
Issued, Subscribed and Fully Paid up 33439 33439 33439
33,43,87,500 (33,43,87,500 PY) Equity Shares of ` 10 each fully
paid-up
Par Value per Share (`) 10 10 10
Reconciliation of the Number of Shares Outstanding at the
beginning and at the end of the reporting period
Opening Equity Shares (Nos.) 334387500 334387500 334387500
Add: Additions during the Year (Nos.)
Less: Shares Bought Back (Nos.)
Closing Equity Shares (Nos.) 334387500 334387500 334387500
Shares in the Company held by each Shareholder holding more
than 5 percent shares specifying the number of Shares held
President of India and Nominees 251292407 251292407 300855180
% of Shareholding of President of India and Nominees 75.15% 75.15% 89.97%
Life Insurance Corporation of India 28858712 48382104 23407104
% of Shareholding of Life Insurance Corporation of India 8.63% 14.47% 7.00%
Shares held by promoters at the end of the reporting period
Promoters Name:
President of India and Nominees
No. of Shares 251292407 251292407 300855180
% of total Shares 75.15% 75.15% 89.97%
% Change during the year 0.00% -16.47%
Terms/ Rights attached to Equity shares

The Company has one (1) Class of Shares i.e Equity Shares
The Equity Shares rank Pari Passu in all respects including right to Dividend, Issue of New Shares, Voting Rights and in the Assets
of the Company in the event of Liquidation.
Refer Clause 48 A of Note 49 for details regarding buy back of shares
Note 23- Other Equity

(` in Lakhs)
Particulars As at As at
A. Research & Development Reserve
Opening Balance 133727 108732
Add: Current Year Transfer 31596 29599
Less: Transfer to General Reserve on utilisation 3985 4604
Closing Balance (A) 161338 133727

(` in Lakhs)
B. Capital Redemption Reserve
Closing Balance (B) 14761 14761
C. General Reserve As per last Balance Sheet 1354875 1227377

(+/-) Surplus Transferred from Statement of Profit and Loss 357986 122894
(+/-) Ind AS Adjustment/Restatement 0 0
Add: Transfer from R&D Reserve 3985 4604
Closing Balance (C) 1716846 1354875
D. Retained earnings - Surplus in the statement of Profit & Loss

Opening Balance 0 0
Add/(Less): Net Profit / (Net Loss) for the Current Year 508650 323945
Add/(Less): Remeasurement of the defined benefit plans 14687 -71136
Sub total (i) 523337 252809
Less: Appropriations / Allocations
Transfer to Research & Development Reserve 31596 29599
Interim Dividend (PY - Final Dividend) 133755 100316
Tax on Dividend 0 0
Sub total (ii) 165351 129915
Transfer To General Reserves (i)-(ii) 357986 122894
Closing Balance (D) 0 0
E. Other Components of Equity

Fair Value through Other Comprehensive Income (FVOCI) ($)
Opening Balance 16 -63837
Add/(Less): Additions made during the year 14687 -7283
Add/(Less): Remeasurement of the defined benefit plans -14687 71136
Closing Balance (E) 16 16
TOTAL (A+B+C+D+E) 1892961 1503379
1. $ Breakup is given separately in Statement of Changes in Equity

Nature and Purpose of each Reserve:
1 Research & Development Reserve:
Research & Development Reserve is created to bring technological superiority to its products in order to cope with the
future technological challenges by transfer of annual contribution of 10% of Operating Profit After Tax. The amount of
utilisation for R&D puposes during the year is transferred to General Reserve.
2 Captial Redemption Reserve:

This was created on redemption/buyback of equity shares.
3 General Reserve:
General Reserve is created out of the profits of the Company and out of Research & Development Reserve on utilization
of Research & Development purposes. This is a free reserve.
Note 24- Borrowings

(` in Lakhs)
A. Secured
a ) Term Loans
(i) From Banks 0 0 0
Sub-Total (A) 0 0 0
B. Unsecured
Sub-Total (B) 0 0 0
TOTAL (A + B) 0 0 0
Note 24 A- Lease Liabilities

(` in Lakhs)
Lease Liabilities 178 174 170
TOTAL 178 174 170
Refer Clause 1 (a) of Note 49 for further disclosures on lease
Note 25- Trade Payables

(` in Lakhs)
Trade Payables
TOTAL 0 0 0

Note 26- Other financial liabilities
(` in Lakhs)
Dues to Employees 19 18 19
Deposits 10 17 18
Deferred liabilities 36750 34154 34178
Due to Capital Creditors - Micro enterprises and Small Enterprises 0 0 0
Due to Capital Creditors - other than micro enterprises and small 0 0 0
enterprises
Other Liabilities* 15689 15140 20771
TOTAL 52468 49329 54986
*Refer Clause No. 10 of Note 49
Note 27- Provisions

(` in Lakhs)
A. Provisions for Employee Benefits
Gratuity 0 0 0
Earned Leave 97614 96197 65883
Others 0 0 0
Sub-Total (A) 97614 96197 65883
B. Others*
Replacement and Other Charges 15179 12544 14346
Warranty 4700 4032 0
Liquidated Damages 7331 11332 47117
Onerous Contract 0 0 0
Sub-Total (B) 27210 27908 61463
TOTAL (A + B) 124824 124105 127346
*Refer Clause 49 of Note 49 for movement of Provisions
Note 28- Deferred tax liabilities (Net)

(` in Lakhs)
TOTAL 0 0 0
Refer Clause 40 A of Note 49 for break-up of Deferred Tax Assets and Liabilities

Note 29- Other Non current Liabilities
(` in Lakhs)
A. Advances from Customers (Contract Liability)
Outstanding Advances from Customers
Defence* 608833 618072 179433
Others 0 0 0
Sub-Total (A) 608833 618072 179433
B. Milestone Receipt (Contract Liability)
Defence* 610354 286372 496096
Others 7057 12686 15749
Sub-Total (B) 617411 299058 511845
TOTAL (A+B) 1226244 917130 691278
* includes Advance received against LCA Mark IA 878161 44016 0
Note 30- Borrowings

(` in Lakhs)
A. Secured Short Term Borrowings:
a) Loans Repayable on Demand
(i) From Banks* 0 907 438650
Working Capital Loan-Cash Credit*
Sub-Total (A) 0 907 438650
B. Unsecured Short Term Borrowings:
(i) From Banks - Commercial paper 0 0 150000
Sub-Total (B) 0 0 150000
Current maturity of Long Term Borrowings
TOTAL (A + B) 0 907 588650
Refer Clause No. 35 of Note No.49 for further details on Borrowings
* Working Capital Loan is secured by first charge on Current Assets (All kinds of Stocks and Receivables of the company both
present and future)

(` in Lakhs)
TOTAL 8 8 8
Refer Clause 1 (c) of Note 49 for further disclosures on lease

(` in Lakhs)
Trade Payables*
A)
total outstanding dues of micro enterprises and small 4575 5209 4866
Enterprises
B)
total outstanding dues of creditors other than micro 251402 220864 404883
TOTAL 255977 226073 409749
* Above balances of Trade Payable include balances with 12171 9477 6355
related parties (Refer Payable of Clause No.45A(e) of Note 49).
Refer Clause 54 (a) of Note 49 for ageing schedule of Trade
Payables.
Refer Clause No. 19 of Note No.49 for dues of micro and small
enterprises
Note 32- Other Financial Liabilities

(` in Lakhs)
Liability for Outstanding Expenses 46697 58475 47404
Deposits 12458 12314 11617
Royalty 6111 5261 5600
Current Maturities of Deferred Debts/Liabilities 4678 4182 4047
enterprises
Application Money received from Allotment of Securities and due 0 0 0
for Refund
Unpaid Dividend Account** 53 249 15
Others Liabilities* 69648 68573 56007
TOTAL 185024 194982 249425
* Above balances of Other Liabilities include balances with
related parties (Refer Payable of Clause No.45A( e) of Note 49).
5597 4644 4744
** No amount is due and outstanding to be transferred to Investor
Education and Protection Fund at the year end.
Refer Clause No. 19 of Note No.49 for dues of micro and small enterprises

Note 33- Other Current Liabilities
(` in Lakhs)
Defence 430963 506698 353706
Others 4226 4272 3841
Sub-total (A) 435189 510970 357547
Defence 941864 1063923 816368
Others 62928 80442 81847
Sub-total (B) 1004792 1144365 898215
Advances from Customers (A + B) 1439981 1655335 1255762
C. Other Payables
Taxes (Other than Taxes on Income) 11634 5954 11689
GST Payable 7181 7111 17368
Others 16688 15268 13637
TOTAL (A+B+C) 1475484 1683668 1298456
Note 34- Provisions

(` in Lakhs)
Gratuity 0 3174 24093
Earned Leave 15102 14575 41895
Others 44721 39890 17539
Sub-Total (A) 59823 57639 83527
B. Others*
Warranty 104625 78549 65384
Sub-Total (B) 445755 335888 420591
TOTAL (A + B) 505578 393527 504118

Note 35- Current tax liability (Net)
(` in Lakhs)
Current tax liability (Net) 79914 42254 58076
TOTAL 79914 42254 58076
Note 36 - Revenue from Operations

(` in Lakhs)
Particulars For the Year ended For the Year ended
A. Sale of Products
(i) Inland Sales
Finished Goods 737527 856367
Spares 332969 372687
Development 91530 87212
Miscellaneous 33889 34001
Total Inland Sales of Products 1195915 1350267
(ii) Export Sales
Spares 4280 18481
Development 118 24
Total Export Sales of Products 13813 21756
Total Sale of Products (A) 1209728 1372023
B. Sale of Services
(i) Inland Sale of Services
Repair & Overhaul 1220619 873015
Other Services 2836 2834
Total Inland Sales of Services 1223455 875849
(ii) Export Sale of Services
Total Export Sales of Services 2983 2224
Total Sales of Services (B) 1226438 878073
Total Sales (A+B) [For details refer Clause 1(e) of Note 49] 2436166 2250096
C. Other Operating Revenues
(i) Disposal of Scrap and Surplus / Unserviceable Stores 1228 861
(ii) Provisions no Longer Required* 22108 34723
(iii) Others 2519 2556
Total Operating Revenues (C) 25855 38140
Revenue from Operations (A+B+C) 2462021 2288236

Note 37- Other Income
(` in Lakhs)

Interest Income
Short term Deposits / Loans / Others 34657 2009
Sundry Advances - Employees 58 68
Other Deposits 7723 6725
Sub-total 42438 8802
Dividend Income
Dividend from Non- Current Investments in Joint Ventures 196 111
Other Non-Operating Income
Gain on Foreign Currency Transaction and Translation 3851 368
Gain on Sale of Property, Plant & Equipment (Net)* 157 12
Gain on Fair Value Adjustment 2130 4159
Interest on Income Tax Refund 26273 4791
TOTAL 98634 35789
* Refer Clause 9 of Note 49
Note 38- Cost of materials consumed

(` in Lakhs)

Consumption Of Raw Material, Components, Stores and Spare Parts
Opening Stock 1143303 1082258
Add: Purchases 782959 879923
Add: Subcontracting, Fabrication and Machining Charges. 26131 27012
Less: Closing stock 1036103 1143303
916290 845890
Less: Transfer to
Special Tools and Equipment 27075 45751
Capital Works 3546 0
Expense Accounts and Others 7673 6482
40765 53975
TOTAL 875525 791915

Note 38A- Purchase of Stock-in-Trade
(` in Lakhs)

Purchase of Stock-in-Trade 65668 82116
Note 39- Changes in Inventories of Finished Goods, Stock-in-Trade and Work-In-Progress and Scrap
(` in Lakhs)

Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-
progress
Opening Balance
(i) Finished Goods 0 0
(ii) Work-in-progress 585052 827790
(iii) Stock in Trade 2244 5250
587296 833040
Closing Balance
528078 587296
Accretion / (Decretion) -A -59218 -245744
Change in Disposables Scrap
Closing Balance 710 721
Accretion / (Decretion)-B -11 -83
TOTAL (A+B) -59229 -245827
Note 40- Employee benefits expense

(` in Lakhs)
Salaries and Wages 374313 348988
Contribution to Provident Fund and Others 58160 57759
Contribution to Gratuity 8465 9632
Staff Welfare Expenses( Net) 17877 12512
Rent for Hiring Accommodation for Officers 168 211
TOTAL 458983 429102

Note 41- Finance costs
(` in Lakhs)
Interest on Cash Credit 2 13279
Discount on Commercial paper 0 6895
Interest on Lease Liability 11 11
Interest on Financial Liability carried at Amortised Cost 0 0
Interest on Income Tax 5567 5475
Interest on Micro and Small Enterprises 234 219
Interest - Others* 0 32
TOTAL 5814 25911
Refer Clause No. 19 of Note No.49 for dues of micro and small enterprises
*Refer Clause No. 10 of Note 49 for Interest-Others
Note 42- Depreciation and Amortization expense

(` in Lakhs)

A. Depreciation on Plant, Property and Equipment 29620 29969
B. Amortisation
Intangible assets- Development Expenditure 33694 28817
Other Intangible assets
Licence Fees 1474 9968
Computer Software 616 748
Documentation 3524 5433
Special Tools 42059 40784
Sub-Total (B) 81367 85750
TOTAL (A+B) 110987 115719
Note 42A-Impairment Loss

(` in Lakhs)

Impairment Loss on Intangible Asset 17643 6385
TOTAL 17643 6385
Refer Clause No. 48C of Note 49

Note 43- Other expenses
(` in Lakhs)
Shop Supplies 7830 8992
Power and Fuel 14104 13312
Water Charges 5900 4984
Rent for Office Premises etc. 99 96
Travelling (includes Foreign Travel) 3861 2676
Training (includes Foreign Training) 432 513
Repairs:
Buildings 6255 6278
Plant, Machinery and Equipment 13461 13081
Others 4069 3797
Expenses on Tools and Equipment 2916 3401
Insurance 4020 4043
Rates and Taxes 5754 1321
Postage and Telephones 779 747
Printing and Stationery 635 626
Publicity 700 2106
Advertisement 195 154
Bank Charges 700 761
Loss on Foreign Currency Transaction and Translation 0 0
Legal Expenses 351 423
Auditors' Remuneration:
For Audit Fee 57 48
For Tax Audit Fee 7 6
For Other Services-Interim Audit & Other Certification fees 87 79
Selling Agents Commission 16 21
Donations 0 0
Handling Charges 173 255
Write Off:
Stores 1768 2320
Shortages / Rejections 484 899
Others 374 1935
Freight and Insurance 960 947
Corporate Social Responsibility# 7216 7859
Loss on Fair Value Adjustment 2443 4223
Loss on Sale of Property, Plant & Equipment (Net) 0 0
Miscellaneous Operating Expenses (@) 35228 34820
TOTAL 120874 120723
(@) includes Director’s Sitting Fees, excluding GST for the current year is ` 7 Lakh 8 39
(For the year ended 31st March 2021 is ` 32 Lakh)
#Refer Clause No. 55S of Note 49 for further disclosures on Corporate Social Responsibility

Note 44- Direct Input to Work in Progress / Expenses Capitalised
(` in Lakhs)

A) DIRECT INPUT TO WIP
Project related Travel 493 212
Project related Training 0 25
Project related other Expenditure 5023 2665
Travel outstation jobs 1 0
Royalty 1820 1374
Foreign Technician Fee 156 908
Ground Risk Insurance 3234 3180
Quality Audit Expenses 4 3
Design and Development 14106 16496
Sundry Direct Charges - Others 340 363
Sub-Total (A) 25177 25226
B) EXPENSES CAPITALISED TO INTANGIBLE ASSET

Computer software 684 534
Documentation 0 1
Sub-Total (B) 7138 751
TOTAL (A + B) 32315 25977
Note 45- Provisions

(` in Lakhs)

Replacement and Other Charges 78729 21175
Warranty 51544 32561
Redundancy provision - Raw Materials and Components, Stores and Spare 56005 43009
parts, Loose Tools and Equipment, Construction Materials, Inventory - Warranty
and Work-in-Progress
Liquidated Damages 74395 43875
Doubtful Debts 105568 1426
Doubtful Claims 7120 3017
Impairment of Investments 557 1145
TOTAL 373918 146208
Refer Clause 49 of Note 49 for movement of Provisions

Note 46- Expenses relating to Capital and Other Accounts
(` in Lakhs)

Expenses allocated to:
Other Intangible assets 7138 751
Others 13265 38431
TOTAL 83416 93394
Other Comprehensive Income

Note 47- Items that will not be reclassified to Profit or Loss
(` in Lakhs)

Remeasurements of the defined benefit plans 19627 -9733
TOTAL 19627 -9733
Note 48- Items that will be reclassified to profit or loss

(` in Lakhs)

Exchange differences in translating the financial statements of a foreign 0 0
operation;
TOTAL 0 0

Note 49 - Notes to Financial Statements
(` in Lakhs)
Clause No. Particulars
Company Overview:
Hindustan Aeronautics Limited (“HAL”) herein after referred to as, “the Company” is a limited Company
incorporated in India. It is presently a Government Company within the meaning of Section 2(45) of the Companies
Act, 2013 as the President of India acting through the Ministry of Defence (MoD) holds 75.15%(Previous year -
75.15%) equity shares of the Company.
The Company is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a
wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures.
The Company has been set up to meet the requirement of Indian Defence Forces (namely Indian Airforce, Indian
1(a) Navy, Indian Army and Indian Coast Guard) in the area of Aerospace.
The Company’s operations are organised into five complexes, namely the Bangalore Complex, MiG Complex,
Helicopter Complex, Accessories Complex and Design Complex, which together include 20 production divisions
and 11 research and design centres (“R&D Centres”) and 8 support offices located across India. For the purpose
of Financial Statements 29 Divisions are consolidated by merging R&D Centers and support offices with the main
production division. The Company relies on Indigenous research as well as enter into technology transfer and
licence agreements to manufacture its products. In addition, the Company has established 12(twelve) Commercial
Joint Venture Companies(JVCs) in collaboration with leading international aviation and Indian Organizations and
2(two) Subsidiary Companies to grow its operations. Besides, the Company also formed 2(two) Section-8 (non-
profit) Companies.
Restatement for the year ended 31 March 2021 and as at 1 April 2020
In accordance with Ind AS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and Ind AS 1,
‘Presentation of Financial Statements’, the Company has retrospectively restated its Balance Sheet as at 31 March
2021 and 1 April 2020 (beginning of the preceding period) and Statement of Profit and Loss for the year ended 31
March 2021 for the reasons as stated in the note no. 49(1)(b)(vi). Reconciliation of financial statement line items
which are retrospectively restated are as under:
1(b)(i) Reconciliation of restated items of Balance Sheet as at 1 April 2020
Particulars Note As * Reclassi- As at 01st Restatement As
No. previously fication April 2020 as on 01st April restated
reported 2020 for prior
periods in
financial year
2021-22
ASSETS
Non-current assets
(a) Property, Plant and Equipment 1 634459 634459 -23723 610736
(b) Capital work-in-progress 2 85742 85742 -12273 73469
(c) Investment Property 3 3 3 3
(d) Goodwill 4 0 0 0
(e) Other Intangible assets 5 100686 100686 100686
(f) Intangible Assets under 6 118269 118269 118269
Development

(` in Lakhs)
Clause No. Particulars Note Particulars
As *Reclassi- As at Restatement As
No. previously fication 01st April as on 01st April restated
reported 2020 2020 for prior
periods in
financial year
2021-22
(i) Investments accounted for 7 11714 11714 11714
using the equity method
(ii) Investments 7A 82301 6044 88345 88345
(v) Loans 9 4796 -3840 956 956
(vi) Other Financial Assets 10 33813 3840 37653 37653
(i) Other Non-Current Assets 12 62940 62940 -156 62784
Current assets
(a) Inventories 13 1945392 1945392 12273 1957665
1(b)(i)
(ii) Trade receivables 15 1123473 1123473 2922 1126395
(iii) Contract Assets 15A 784173 784173 2054 786227
(v) Bank Balances other than 17 2008 2008 2008
Cash and Cash Equivalents
(vi) Loans 18 1934 -758 1176 1176
(vii) Other Financial Assets 19 121882 -5286 116596 514 117110
(d) Other Currents Assets 21 129057 129057 156 129213
Total 5320967 5320967 -18233 5302734
Equity
(b) Other Equity 23 1286519 1286519 514 1287033

(` in Lakhs)
Clause No. Particulars Note As
Particulars
*Reclassi- As at Restatement As
No. previously fication 01st April as on 01st April restated
reported 2020 2020 for prior
periods in
financial year
2021-22
LIABILITIES
(ii) Lease Liabilities 24A 170 170 170
(iii) Trade payables 25 0 0 0
(iv) Other Financial Liabilities 26 55156 -170 54986 54986
(b) Provisions 27 127346 127346 127346
1(b)(i) (d) Other Non-Current Liabilities 29 705654 705654 -14376 691278
Current Liabilities
(i) Borrowings 30 588650 588650 588650
(iii) Trade payables 31
A) total outstanding dues of 4779 4779 87 4866
micro enterprises and small
Enterprises
B) total outstanding dues of 404144 404144 739 404883
creditors other than micro
enterprises and Small
Enterprises
(iv) Other Financial liabilities 32 250259 -8 250251 -826 249425
(b) Other Current Liabilities 33 1302827 1302827 -4371 1298456
(c) Provisions 34 504118 504118 504118
Total 5320967 0 5320967 -18233 5302734
* Note: Reclassification/disclosure which has no impact on Profit and loss and retained earnings.

(` in Lakhs)
Reconciliation of restated items of Balance Sheet as at 31.03.2021

Particulars Note As *Reclassi- As at Restatement as As
No. previously fication 31.03.2021 on 31st March restated
periods in
financial year
2021-22
ASSETS
Non-current assets
(f) Intangible Assets under 6 128627 128627 128627
Development
(i) Investments accounted for 7 10569 10569 10569
using the equity method
(ii) Investments 7A 88345 6581 94926 94926
(v) Loans 9 4613 -3863 750 750
(vi) Other Financial Assets 10 33776 3863 37639 37639
(i) Other Non-Current Assets 12 70686 70686 -51 70635
Current assets
(a) Inventories 13 1656033 1656033 12823 1668856
1(b)(ii)
(ii) Trade receivables 15 563936 -7991 555945 11010 566955
(iii) Contract Assets 15A 834616 7991 842607 2161 844768
(v) Bank Balances other than 17 2485 2485 2485
Cash and Cash Equivalents
(vi) Loans 18 1456 -682 774 774
Total 5187164 0 5187164 -18189 5168975

(` in Lakhs)
Reconciliation of restated items of Balance Sheet as at 31.03.2021

Particulars Note As *Reclassi- As at Restatement as As
No. previously fication 31.03.2021 on 31st March restated
periods in
financial year
2021-22
Equity
(b) Other Equity 23 1502216 1502216 1163 1503379
Non-controlling interest 0 0 0
LIABILITIES
(iii) Trade payables 25 0 0 0
(iv) Other Financial Liabilities 26 49503 -174 49329 49329
(b) Provisions 27 120073 4032 124105 124105
1(b)(ii) (d) Other Non-Current Liabilities 29 930769 930769 -13639 917130
Current Liabilities
(i) Borrowings 30 907 907 907
(iii) Trade payables 31
Enterprises
Enterprises
(iv) Other Financial liabilities 32 196448 -8 196440 -1458 194982
(c) Provisions 34 397559 -4032 393527 393527
Total 5187164 0 5187164 -18189 5168975
* Note: Reclassification/disclosure which has no impact on Profit and loss and retained earnings.

(` in Lakhs)
Reconciliation of restated items of Statement of Profit and Loss for the year ended 31 March 2021
Particulars For the year
ended
31 March 2021
Profit after tax as per previously audited financial statement 323296
RESTATEMENT ADJUSTEMENTS:
Revenue recognised on the assets created out of funds received from the customers 14739
Cost of sales reccognised pertaining to the revenue on the assets created out of funds received -14739
1(b)(iii) from the customer
Reversal of revenue recognised, equivalent to depreciation charged on the assets funded by the -2039
customer, as per earlier policy
Reversal of Depreciation charged on customer funded assets. 2039
Recognition of claims from Insurance Companies for refund of Insurance premium paid 649
Profit after tax as per Restated Accounts 323945
Other Comprehensive Income -7283
Total Comprehensive Income 316662
Earning per Equity share
As a result of the above-mentioned adjustments, basic and diluted earnings per share for the financial year 2020-21
changed as below:
Particulars As previously Adjustments As restated

1(b)(iv)
reported
Earnings per Share
Basic earnings per Equity Share (in `) 96.68 0.20 96.88
Diluted earnings per Equity Share (in `) 96.68 0.20 96.88
1 April 2020 31 March 2021
Equity as previously reported 1319958 1535655
Revenue recognised on the assets created out of funds received from the 27107 41846
customers
Cost of sales recognised pertaining to the revenue on the assets created out -27107 -41846
1(b)(v) of funds received from the customer
Reversal of revenue recognised, equivalent to depreciation charged on the -3384 -5423
assets funded by the customer, as per earlier policy
Reversal of Depreciation recognised as per the earlier policy. 3384 5423
Recognition of claims from Insurance Companies for refund of Insurance 514 1163
premium paid
Equity as per re-stated Accounts 1320472 1536818

(` in Lakhs)
Accounting treatment of assets owned by Customer for its use in specific project:
In respect of certain capital items specific to projects have been funded by the customer either upfront or is
reimbursed through product cost spread over the duration of the projects. Hitherto these assets were capitalized,
and shown under Property, Plant and Equipment. Revenue was recognised to the extent of depreciation on such
capitalized assets. The value of assets were adjusted to Advances from Customers, where the Company has no
control over the assets and disclosed under explanatory notes to Financial Statement.
1(b)(vi)
An Expert Advisory Committee opinion was sought from The Institute of Chartered Accountants of India for the
accounting treatment of assets funded by Customer for its use in specific project. Based on the opinion received,
the view taken by the Company that it has control over the assets, recognising revenue towards the consideration
received in the form of assets, over the useful life of the asset, to the extent of depreciation provided on such
assets are not correct. As per the opinion received from Expert Advisory Committee, the revenue in respect of
funds received from the customer for the manufacturing facility should be recognized as or when the control over
manufacturing facility is transferred to the customer in line with the requirements of Ind AS 115.
As at 01st April 2020:
Revenue pertains to previous periods prior to comparative period presented, Revenue and cost to the extent of
` 27107 Lakh is recognised in the opening reserve as at 01st April 2020.
Revenue and cost recognised to the extent of depreciation, on such assets, pertains to previous periods prior to
comparative period presented, now reversed to the extent of ` 3384 Lakh in the opening reserve as at 01st April
2020.
Consequently, Trade receivables for ` 2922 Lakh, Contract Assets for `2054 Lakh and Advances from Customers for
` 18747 Lakh has been restated based on the terms of payment. Further, Capital Work in Progress, Capital Advance
& Capital Creditors pertaining to such assets has been reclassified.
For the year ended 31st March 2021:
Revenue pertains to comparative period. Revenue and cost to the extent of `14739 Lakh is recognised in the
Comparative period i.e 2020-21. Revenue and cost recognised to the extent of depreciation on such assets, now
reversed by restating the Revenue and depreciation in the Comparative period i.e 2020-21 for ` 2039 Lakh.
Consequently, cumulative impact on Trade receivables for `11010 Lakh, Contract Assets for ` 2161 Lakh and
Advances from Customers for ` 19352 Lakh has been restated based on the terms of payment. Further, cumulative
impact on Capital Work in Progress, Capital Advance & Capital Creditors pertaining to such assets has been
reclassified.
Insurance Premium
The provisional insurance premium paid on Aviation Policy was charged off to Profit and Loss Account in the
respective years i.e. 2018-19, 2019-20 and 2020-21. On the basis of submission of actual value of Aircraft
delivered during the said period, the actual premium has been assessed and excess of provisional premium over
the actual premium is recognised and restated accordingly.

(` in Lakhs)
Disclosure under Ind AS 116 as lessee:

as lessee
Sl. Particulars 31st March 2022 31st March 2021
No.
1 depreciation on right-of-use assets for the period ended 291 63
2 interest expense on Lease liabilities for the period ended 11 11
1(c)
3 total cash outflow for leases for the period ended 7 297
4 additions to right-of-use assets 8108
5 carrying amount of right-of-use assets 8532 9237
One Avro Aircraft (BH 572) is on lease from Indian Air Force for a period of 1 year for an amount of ` 228 lakhs.
The charges for the same has been accounted as expenditure of ` 228 lakhs for the year ended 31st March 2022.
The company has option to renew the lease subject to increment of 9% over previous year.
as lessor
The Company leases out its Investment property and Property, Plant and Equipment. The Company has classified
these lease as operating leases, as there is no transfer substantially all the risks and rewards incidental to the
1(d) ownership of the assets. Clause 51 of Note 49 gives information about the operating leases of Investment Property.
Operating Lease 31st March 2022 31st March 2021
Lease income 1481 1312
The Property, Plant and Equipment disclosed under Note 1A includes the following assets given on Operating Lease
Particulars As at 31st March 2022 As at 31st March 2021
Gross Accumulated Net Depreciation Gross Accumulated Net Depreciation
Block Depreciation Block for the year Block Depreciation Block for the year
Land - Freehold 94 94 94 94
Buildings - 14 11 3 14 11 3
Owned
Aircraft/ 1610 416 1194 81 1610 335 1275 81
Helicopters
Total 1718 427 1291 81 1718 346 1372 81
The maturity analysis of lease payments (including payments from Investment Property) showing the undiscounted
minimum lease payments to be received over the remaining non-cancellable term on an annual basis are as follows:
Term 31st March 2022 31st March 2021
Less than one year 495 765
One to Two years 357 477
Two to Three years 375 341
Three to Four years 395 358
Four to Five years 130 376
More than Five years 1952 436
Total undiscounted lease payments 3702 2753

(` in Lakhs)
Credit Risk
1(d) The Company has leased out its Properties to Joint Ventures, Subsidiaries and Other agencies. Lease payments are
structured with periodic escalations consistent with the prevailing market conditions. Based on the Credit Risk in
lease payments, suitable provision has been made.
Disaggregation of Revenue as per Ind AS 115
Particulars For the period ended 31st March 2022 For the period ended 31st March 2021
Sale of Goods Sale of Goods
Finished Spares Development Miscel- Finished Spares Development Miscella-
Goods laneous Goods neous
1(e) Timing of revenue Point Point Point Point Point Point Point Point Point Point
recognition in in in over in in in in over in
time time time time time time time time time time
Revenue by Geography
INDIA 737527 332969 950 90580 33889 856367 372687 41 87171 34001
REST OF THE WORLD 9415 4280 118 3251 18481 24
TOTAL 746942 337249 1068 90580 33889 859618 391168 65 87171 34001
Particulars For the period ended For the period ended

Sale of Services Sale of Services
Repairs & Overhaul Others Repairs & Overhaul Others
Timing of revenue recognition Point in Point Point in Point in Point Point in
time over time time time over time time
Revenue by Geography
INDIA 1204208 16411 2836 870775 2240 2834
REST OF THE WORLD 2520 - 463 2189 - 35
TOTAL 1206728 16411 3299 872964 2240 2869
Claims / Demands against the Company contested and are not acknowledged as Debts (Gross)
- as reimbursements are available from the customers as per contract.
Particulars* As at Additions Removal As at
1st April 2021 (net) (from Opening 31st March 2022
Balance)
(i) Sales Tax / Entry Tax / GST 1008938 113293 329 1121902
2(a)
(ii) Service Tax 127359 11217 548 138028
(iii) Customs Duty 25376 4808 30184
Total 1161673 129318 877 1290114
*In terms of Pricing Policy agreed with Indian Defence Customers, prices approved are exclusive of taxes and duties
i.e. Sales Tax, GST, Service Tax, Customs Duty etc. In case, the customer do not submit an exemption certificate,
taxes would be levied and the same would be re-imbursed by the customer.

(` in Lakhs)
Contingent Liability not acknowledged as Debts(Gross)

Particulars As at Additions Removal As at
1st April 2021 (net) (from Opening 31st March 2022
Balance)
2(b) (i) Income Tax 18700 80359 271 98788
(ii) Municipal Tax 15210 15210
(iii) Others 52375 6336 16886 41825
Total 71075 101905 17157 155823
Hitherto the Company was claiming that the factory land and incidental uses are not subject to property tax by
Bruhath Bangalore Mahanagara Palike(BBMP). The Joint Commissioner, BBMP, Mahadevpura by his order dated
13.08.2021 did not accept the contention and directed the Assistant Revenue officer to make an assessment order
after giving opportunity to the Company.
The officer, suo moto raised a demand of ` 20253 lakh for the FY 2008-09 to 2021-22 without passing an order
consisting of property tax ` 8268 Lakh and interest thereon `11985 Lakhs.
The Company has filed an appeal before the City Civil Court, Bangalore to set aside the demand notice and the
appeal is pending.
Pending disposal of the appeal and without prejudice to its grounds under writ petition, pursuant to legal advice
the Company has recognized ` 5043 Lakhs property tax based on self-assessment basis.
2(c) 31st March 2022 31st March 2021
Guarantees excluding financial guarantees - 300
Commitments
Estimated amount of contracts remaining to be executed and not
provided for:
on Capital Account 136154 119169
3
Total 136154 119169
In view of the nature of business, being long term contracts there may be other commitments for purchase of
material etc., which has been considered as normal business process, hence not been disclosed.
Working Capital Facilities

The total Cash Credit limits ` 400000 lakhs including ` 240000 lakhs of Commercial Paper and Corporate Loan
4 of `183000 lakhs (Previous year - ` 1000000 lakhs including ` 480000 lakhs of Commercial Paper) and Non-Fund
based limits ` 205000 lakhs (Previous year - ` 205000 lakhs) sanctioned by consortium of bankers. The said limits
are secured by hypothecation of inventories and receivables.

(` in Lakhs)
Value of Imports calculated on CIF basis:

Particulars For the period For the period
ended ended
5 (i) Raw Materials 322954 382959
(ii) Components and Spares 315604 306769
(iii) Capital Goods 3691 6865
(iv) Special Tools 14752 31157
Total 657001 727750
Raw Materials, Spare Parts and Components consumed :
(i) Imported (including Customs Duty) 685951 627875
(% to total) 74.86 74.23
6 (ii) Indigenous 230339 218015
(% to total) 25.14 25.77
Total (Gross) 916290 845890
(Total %) 100 100
Expenditure in Foreign currency on account of :
(i) Royalty 1040 1575
(ii) License Fee 6450 303
(iii) Documentation
7 (iv) Professional, Consultancy and Foreign Technician Fees 412 912
(v) Foreign Travel 78 258
(vi) Liason Office Abroad 325 353
(vii) Others 223 379
Total 8528 3780
Earnings in Foreign Exchange :
(i) FOB value of exports made by the Company 13813 21756
7A
(ii) Services 2983 2224
Total 16796 23980
The Property, Plant and Equipment does not include assets funded by the
customer for use of their jobs but held by the Company on their behalf.
8A
Additions 14339 14739
Deletions - -
Certain Capital items specific to projects for manufacturing facility have been funded by the customer either
upfront or is reimbursed through product cost spread over the duration of the projects. The revenue in respect of
8B
funds received from the Customer for the manufacturing facility would be recognised as and when the control
over manufacturing facility is transferred to the Customer as per the requirement of Ind AS 115.

(` in Lakhs)
Capital Work-in-progress As at As at
8C
Deletions 16760 44874

ended ended
Profit on Sale of Property, Plant & Equipment 157 12
9 Loss on Sale of Property, Plant & Equipment - -
Net (Note 37 - Other Income & Note 43 - Other Expenses) 157 12
The Company has received a sum of ` 13229 lakhs(Previous year - ` 13229 lakhs) from Ministry of Defence (MoD),
Government of India (GOI) towards investment by the Company in Multirole Transport Aircraft Limited (MTAL).
Out of the above, the Company has till date invested a sum of `11347 lakhs (Previous year - `11347 lakhs).
10
The balance of `1882 lakhs has been paid during the year 2020-21. Interest @ 6.85% has been provided on
the unutilised portion up to the date of repayment `3326 lakhs (Previous year – ` 3326 lakhs) included in other
financial liabilities (refer clause no. 45B).
The aggregate amount of Research and Development Expenditure recognised as expenses during the
period is as below:
Expenditure in R&D included in : For the period For the period
ended ended
Raw Material Consumption 42898 36287
Direct Expenses 18585 18586
11
Other Expenses 13821 12971
Depreciation & Amortisation 35618 31368
Impairment 4862 6329
Provisions 16331 354
Total R & D Expenditure 196691 168740
R&D Corpus
12 Board has approved the creation of R&D Corpus (excluding customer funded R&D) with an annual contribution of
10% of Operating Profit After Tax (PAT).
Indigenization Corpus
Notification on Policy for Indigenization of Components and spares used in Defence platforms for DPSUs/OFB was
13 issued on 8th March 2019.
As the guidelines from Department of Defence Production(DDP) regarding modalities has not been received as on
31st March 2022 no provision has been made during this period.

(` in Lakhs)
14 31st March 2022 31st March 2021
Total Land held (in acres). (Refer Note -1A) 12042.726 12042.753
Division Assets Acres Amount Acres Amount

Instruments of transfer in Lucknow/ Nasik Land 304.490 286 304.490 286
14.1 respect of land and building
have not been executed,
even though in possession
by the Company
Land handed over /earmarked FMD/ Hyderabad/ Land 162.549 56 160.040 56
to the Government / other Koraput
14.2
agencies pending execution
of instruments of transfer
Land given on lease to the FMD/ Nasik/ Koraput/ Land 1107.544 94 1105.775 94
14.3 Government / other agencies Hyderabad/ Lucknow
/Korwa /Kanpur
The Company’s Barrackpore Division is in possession of 22.51 acres (Previous year - 22.51 acres) of land on which
the Division has its Buildings, Hangar, Plant and Machinery etc. The instruments of transfer in favour of Division /
Company either by way of lease or transfer in respect of this land is pending execution. Provision for lease rental
amounting to ` 34.50 Lakhs (Previous year - ` 34.00 Lakhs) has been made. The transfer of the land is being
pursued with Defence Estate Officer, Kolkata.
14.4
The above does not include 7.115 acres of Land received from Army in exchange of 5 acres of Land at Bangalore
which was received free of cost from State Government before 31st March 1969. Since the value of 5 acres land was
nil, the value of 7.115 acres land received in exchange of 5 acres land is also taken as Nil.
The title deeds of immovable properties are not held in the name of the Division.
Land(Right-of-Use) under Property Plant and Equipment includes land taken on lease for establishing a unit at
Kasargod at a cost of ` 708 lakhs for 200 acres (Previous year - ` 708 lakhs for 200 acres). This cost is amortised
over the lease period of 90 years. The Lease charges for the year amounting to ` 8 Lakhs (Previous year - ` 8 lakhs)
has been considered under depreciation for the year. However 4.171 Acres(Previous year - 4.171 Acres) of land
shortage due to surrender of certain tracts of land against local disputes by KINFRA. However issue has been taken
up with KINFRA for compensation of shortfall in the land. The Board of KINFRA also decided that the lease premium
of ` 14.76 lakhs remitted by HAL towards 4.171 acres of land will be refunded and necessary corrections are to be
made in the lease deed to effect the changes. Awaiting action from KINFRA.
Land under 14.3 include 12 acres of land given under lease to M/s LNB Renewable Energy Pvt Ltd., Hyderabad for
25 years, giving vendor the ‘Right to Use’ specific land for establishing solar PV Power Plant project only and not for
any other purpose with a Purchase Agreement for a period of 25 years for purchase of electricity generated by the
Solar PV Power Plant project at the fixed tariff of `3.23/KWh.
Land(Right-of-Use) under Property Plant and Equipment includes land (0.273 acres) taken on lease for Liason Office
Mumbai at a cost of `3 lakhs (including development cost). This cost is amortised over the lease period of 30 years.
The amount of amortisation has been considered under depreciation for the year. Lease rental is `2304/- payable
annually.
Land under 14.3 include 38.68 acres of land given under lease to M/s Ordanance Factory Board(OFB), out of
which 8.65 acres has been sub-leased to M/s Indo-Russian Rifles Private Limited (IRRPL) at an annual rent of `1 per
annum.

(` in Lakhs)
a) Facilities Management Division (FMD) is holding 2117.367 acres (Previous year - 2117.367 acres) land, out of
which free hold land of 2096.267 acres (Previous year - 2096.267 acres) is located in Bangalore and 15.1 acres
(Previous year - 15.1 acres) located at Bagalkot, karnataka and Lease hold Land of 6 acres (Previous year - 6
acres) is located at Harapanahalli, Devanagere, of which 17.737 acres (Previous year - 17.737 acres) is under
litigation / encroachment by third parties and 10.152 acres( Previous year - 10.152 acres) is under dispute with
M/s Bharat Earth Movers Limited(BEML).
b) Titles to land are not in the name of the Company in respect of 30 survey numbers totalling to 72.675
acres(Previous year - 72.675 acres) at FMD Division, However, Records of Tenancy Certificate is available.
c) An amount of ` 3119 lakhs (Previous year - ` 2967 lakhs) towards cumulative Lease Rental charges with various
parties has not been considered in the books of accounts of FMD, pending dispute settlement.
14.5 d) DIPAM has communicated the Institutional framework for monetization of the assets of the CPSE’s, approved
by Cabinet in its meeting dated 28th February 2019.
In this regard, approval has been given by the Board in its 439th Meeting held on 13th November 2020 for
Monetization of 1.45 acres of land at Okalipuram, Bengaluru for forwarding the proposal to DDP for approval /
further action by DDP/DIPAM. HAL during November 2020 referred the proposal to MoD. MoD vide letter dated
8th January 2021 communicated that the DIPAM has taken note of the asset monetisation plan and indicated
that HAL may take action to process the case further after taking necessary approval of competent authority
as per extant guidelines. FMD division further processing the case.
e) Land at Nasik Division includes 0.052 acres (Previous year - 0.052 acres) of land encroached by 9 persons.
f) Further, about 50.21 acres(Previous year -50.21 acres) of land belonging to the Company’s Koraput Division is
encroached upon by the nearby villagers for cultivation.
g) Land at Corporate office includes 711.22 sq.mt (Previous year - 711.22 Sq.mt) of land has been acquired for
the Metro Rail Project by M/s Bangalore Metro Rail Corporation Limited (BMRCL). The compensation awarded
of `549 Lakhs (Previous year - `549 lakhs) by M/s Karnataka Industrial Area Development Board (KIADB) was
contested by Company in the City Civil Court at Bangalore. Meanwhile, a Joint Committee comprising the
Company & BMRCL Officials was formed to arrive at an out of court settlement. Currently the case is pending at
evidence stage, the Company is seeking adjournment on account of discussion between parties for settlement.
However, this is subject to final agreement of parties and order of court. On completion of the Metro Rail project,
the land utilized is restricted to 272.94. sq.mt(Previous year - 272.94 Sq.mt). Area to the extent of 438.28
sqm has been conveyed back to HAL through Deed of transfer. Compensation amount for remaining area, i.e
272.94 Sq. mt. is yet to be received by the Company. Accordingly, further necessary actions are being taken by
the BMRCL / KIADB in the matter. HAL has filed memos in the pending cases requesting the Court to disburse
` 348 lakhs along with interest as compensation for remaining area of land (i.e. 272.94 sq.mt.) to HAL. As the
matter is subjudice, no adjustment has been made in the Books.
Land under 14.1 does not include 374.73 acres (Previous year - 374.73 acres) of the land was aquired by State
Government of Uttar Pradesh and possession was handed over to HAL by District Land Acquisition Officer. The
factory area 54.30 acres was transferred during 1973 from Indian Air Force to HAL. As per the legal position, both
the parties are Government bodies. According to Government Grants Act, 15 of 1895, Section-2 Governments
Grants are exempted from the operation of the transfer of property Act. Thus, there is no need of execution of
14.6 the sale deed / transfer deed. A transfer of the title of land, thus, required no registration. The transfer of land by
State of Uttar Pradesh and Indian Air Force to HAL need not require any registration as this transfer is exempted
by the Government Grants Act.
Land under 14.3 does not include, the ownership of 27acres (Previous year - 27 acres) of land on which labour
colony has been built by Labour Commissioner, Kanpur belongs to the Company as per Revenue records.

(` in Lakhs)
a) Approval has been given by the Board for acquiring 7.41 acres of land at Sattari Goa for undertaking MRO
activity.
b) Approval has been given by the Board for acquiring 5 acres of defence land on lease at Akabil village,
Missamari, District sonitpur for establishing MRO Hub Facilities for an annual lease rental of `1.00 per annum
14.7
without any premium and registration charges, processing fees etc as per actual.
c) Approval has been given by the Board for acquiring 4.34 acres of defence land on lease at Mamun Military
station for establishing MRO Hub facilities at an annual lease rental of `1.00 per annum without any premium
along with necessary registration charges, processing fees etc as per actual.
One Hawk-i Aircraft has been used by Aircraft Division for Marketing and Testing Activities. The useful life of the
14.8 Hawk-i Aircraft is technically assessed to be 5 years from 2018-19, accordingly the depreciation has been provided
@ 20% per annuam.

ended ended
15A 31st March 2022 31st March 2021
Sales for the period includes deliveries for which amendment to firm task is 15,664 7,467
awaited from the customer.
As per the Accounting Policy of the Company, in respect of deliverables like spares, Revenue is recognized based
on acceptance by the Buyers’ Inspection Agency or as agreed by the buyer.
15B Delivery of the items to the customers are generally within three weeks from the date of acceptance. However,
during the year ended 31.03.2022, due to COVID 19 Pandemic, there has been a delay in dispatching spares of
` NIL lakhs (Previous year - `2243 lakhs) to the Customers within three weeks from the date of acceptance.
Against anticipated contract for LUH project ` 332 lakhs (Previous year - ` NIL lakhs) has been accounted as Work
15C
in Progress.
Sales includes `127600 lakhs of differential sale on finalization of fixed price quotation for the years from the
15D
Financial Year 2016-17, approved by the Ministry of Defence.
In respect of the materials received under bulk contracts with the Russian Federation where the suppliers do not
16 indicate itemized prices, the value of materials issued is assessed on technical estimates to exhibit a fair value of
the closing work-in-progress and inventory of these materials is subject to adjustment at the end of the project.
The total inventory does not include materials belonging to customers but 90076 72048
17A
held by the Company on their behalf
Claims Receivable(Note 19) includes ` 1603 lakhs (Previous year - `1603 Lakhs) settled under Sabka Saath Sabka
17B
Vikas scheme, is fully reimbursable by customer as per terms of pricing policy with Defence Services.
DIVIDEND POLICY:
As per extant memorandum F.No. PP/14(0005)/2016 dated June 20, 2016, of the Department of Public Enterprises,
Ministry of Heavy Industries & Public Enterprises, Government of India (GOI) (“DoE”) read with the memorandum
18A F.No. 5/2/2016-Policy dated 27th May, 2016 of the Department of Investment & Public Asset Management, Ministry
of Finance, GoI, all central public sector enterprises are 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 the maximum dividend permitted under the
extant legal provisions and the conditions mentioned in the aforesaid memorandum.

(` in Lakhs)
However, the declaration and payment of dividends on our Equity Shares will be recommended by our Board and
approved by our shareholders, at their discretion, subject to the provisions of the Articles, the Companies Act, 2013.
Further, the dividends, if any, will depend on a number of factors, including but not limited to our earnings, guidelines
issued by the DoE, capital requirements and overall financial position of our Company. In addition, our ability to pay
dividends may be impacted by a number of factors, including the results of operations, financial condition, contractual
restrictions, restrictive covenants under the loan or financing arrangements the Company may enter into.
18B(i)
Dividend paid to Resident shareholders - President of India and nominees 100517 75388
(including Interim Dividend)
Dividend paid to Resident shareholders - Other than President of India and 28254 24327
18B(ii)
nominees (including Interim Dividend)
The Company as at 31st March 2022, 3411 Shareholders (31.03.2021 -
2728 shareholders) who are Non-Resident Indians. The Dividend Paid to
18C the Non-Resident shareholders has been paid in Indian Rupees to their
respective Non-Resident Ordinary Rupee Accounts.
Dividend paid to Non-Resident shareholders (including Interim Dividend) 4984 601
Final Dividend:
18D (a) The amount of dividend proposed to be distributed to Equity share
holders
The Information regarding dues to Micro and Small Enterprises*
1. The Principal and the Interest due thereon
a) Principal 4085 4914
b) Interest 593 359
2. The amounts paid by the Company beyond the appointed day during
the year ended
a) Principal 6505 4660
b) Interest
19 3. The Interest due and payable for the period of delay (which have
been paid but beyond the appointed day during the year) but without
adding the interest specified under the Act.
4. The interest accrued and remaining unpaid 593 359
5. The amount of further Interest remaining due and payable even in the 234 219
succeeding years, until such date when the interest dues as above are
actually paid to the Small Enterprise, for the purpose of disallowance
of a deductible expenditure under section 23 of the MSMED Act.
* The information has been given in respect of such suppliers on the basis of information available with the
Company based on information received from such suppliers.

(` in Lakhs)
HAL has initiated criminal proceedings against the accused in 2011-12 and during 2012-13, two civil suits have been
filed for recovery of fraudulently drawn amounts against the accused, his accomplices and institutions namely, the
State Bank of India (SBI) for `289 Lakhs and Shri Krishna Souharda credit Co-operative Limited for `102 Lakhs . Both
the civil cases and criminal case are under progress in the court. Properties of the accused amounting to `138 Lakhs
have also been attached by the court. An amount of `243 lakhs has been received from SBI on 25.04.19 and the
balance amount of ` 148 lakhs has been provided in the Financials of 2018-19.
20
The Hon’ble Court has passed the judgment and decree in favor of HAL by awarding `289 Lakhs along with interest.
Out of which to the extent of ` 148 lakhs along with interest and the legal expenditure to be retained by HAL and
the balance amount to be re-imbursed to SBI as per MOU signed between HAL and SBI. HAL has filed and Execution
petition No.COM.EX/100/2021 dt. 03.03.2021 on defendants for recovery of `597 Lakhs along with interest and
other charges. The Court has issued summons to the accused and the case is being dealt by HAL legal counsel for
recovery of the amount.
A fraud involving misappropriation of funds by Company official in collusion with six contractors has been noticed
by the management and referred to Vigilance department for further investigations. The Vigilance department
based on the investigations has lodged FIR with Central Bureau of Investigation (CBI), Bhubaneshwar. An amount
21 of `1892 lakhs has been provisionally assessed and fully provided in the financials of 2018-19 and 2020-21 as
fraudulent payments made to contractors and others during the period from May 2011 to September 2018 and
reported in the FIR with CBI. Adjustment of expenses relating to capital and other accounts in the financial year
2018-19 and 2020-21 includes the above mentioned amount. The matter is under investigation by CBI.
The Company is having the Multiple Business Activities.
22 Operating Cycle Operating Cycle is determined by Divisions based on
Individual business activity.
The Company’s IJT Division is primarily engaged in production of Intermediate Jet Trainer (IJT) Aircraft. Contract
for supply of 12 Limited Series Production of IJT Aircraft with IAF is pending for fulfillment of certain Parameters
as required by the Customer. Completion of all parameters required by the Customers will take some more time
after which delivery of 12 IJT LSP will start. As per the Article 5.2 of 12 LSP IJT Contract, Stores to be supplied
under this contract shall be new i.e. not manufactured before and shall incorporate all the latest improvement
and modification thereto. Therefore, Parts manufactured and lying in Inventory could not be used for delivery
23A of ultimate product to the customers at this stage. Accordingly, Work in progress of ` 26589 Lakhs lying in the
Books of IJT Division as on 31.03.2022 has been fully provided for in line with Company’s accounting procedure.
Similarly, Kanpur Division of HAL has received order for supply of Series production of 72 IJT which will start after
completion of supply of 12 IJT by IJT LSP Division. Accordingly, Net realisable value of Stock in Trade and Finished
Goods of valuing ` 5705 Lakhs in the Books of Lucknow and Hyderabad Division has been considered as NIL in
the Books of Lucknow and Hyderabad Division as on 31.03.2022.
While the Company is pursuing actively with Ministry of Defence, for the appproval of the price variation to
23B change order in LCA-IOC contract which is pending for approval, out of prudence, provision for `99025 lakhs is
recognised in the Financial Statements 2021-22.
The Company’s Aircraft Division is primarily engaged in the production of Aircraft. The division is manufacturing
airframe structure of LCA(IOC) and FOC offloaded by LCA division along with other activities under Task / RMSO
issued by Defence Services. The loss is due to the non-absorption of overheads commensurate to the workload.
24 The loss of the division reduced compared to the previous year. The Division will generate more revenue in the
coming years to reduce the loss.
However, considering the LCA production program in ensuing years, the division will be a profit generating unit
and no impairment is considered necessary

(` in Lakhs)
Seasonality of business :
The Company experiences cyclicality in respect of recognition of revenue from operations, which is attributable to
the delivery of a majority of our products happening in the second half of the year. The Company recognise sales
upon acceptance of the product by customers and issuance of a signaling out certificate/certificate of conformity
25 by them. The sales are dependent on the certification process which needs to be completed before the customers
can take deliveries. The certification process typically takes place in the third and fourth quarter due to favourable
weather conditions for flight tests during this period. This leads to bunching up of sales during the third and fourth
quarter of each financial year and consequently, the revenue varies significantly between the first and second half
of the year.
Aircraft have been accepted and signaled out by customers’ inspector with fitment of Cat-B items taken on
Loan, in cases of non availability of Cat-A item. As the aircraft is flight worthy and the customers have accepted
26 the same, the sales are accounted, consistently, on the basis of Signaling Out Certificate (SOC) / Certicate of
Conformity(COC). As a principle, Loan items fitted on the aircraft are excluded in value for recognising Sales. Sales
in respect of such Cat-A items are recognized on supply of Cat-A items, within the contract period.
Balance shown under Trade Receivables, Trade Payable, Claims Receivable, Advance against Goods and Services,
Capital Advances, deposits and stock / materials lying with sub-contractors / fabricators are under reconciliation.
Since the Company is a Government entity under the control of Ministry of Defence (MoD), around 97% of the
Company’s turnover, around 97% of Trade receivables and Contract Assets, around 51% of Claims receivables
27
and around 99% of the customer advances is with respect to Government and Government related entities. The
bills are raised on the customers by the divisions located at various places and reconciliation is carried out on an
ongoing basis. However, management does not expect to have any material financial impact of such pending
confirmation / reconciliation.
In the opinion of the Board, the Company do not have any assets other than fixed assets and Non-current
28
investments having a value on realisation in the ordinary course of business less than the amount stated.
Sales, based on Accounting Policy of the Company, is accounted on issuance of Signaling Out Certificate (SOC) by
the customers. There is a time lag between SOC and Ferry out of Aircraft / Helicopter in view of the time involved
in deputation of Ferry team by the customers, their handling flights and rectification of snags involved, if any,
formation of the new squadron, training of pilots etc. The details of Aircraft /Helicopters which are yet to be ferried
out (for which sales has been setup) as on the date of approval of financial statement is as under
Value of the Aircraft / Helicopters yet to be ferried out
ALH LCH LCA Total Date of

Sales
Year % of approval of
(` in lakhs)
29A Sales Accounts
Qty. Value Qty. Value Qty. Value Qty. Value
2020-21 2250096 3 33883 3 33883 2% 28.06.2021

2021-22 2436166 5 52833 3 33509 6 114995 14 201337 8% 13.05.2022
The expenditure involved in the work carried out post SOC date is absorbed against the provision for replacement
charges.
The Company has taken up with Ministry of Defence (MoD) for amendment of ALH contract in respect of both
Indian Air Force and Indian Army to bring them in line with the accounting policy of the Company. In respect of
Indian Air Force, MoD have concurred ”in principle” to above, with the stipulation that the contract amendment
can be made only after similar contract amendment in respect of Indian Army contract with the Company is
finalized. In respect of Indian Army contracts, the matter is under discussion.

(` in Lakhs)
The PSLV contract contains a clause that the acceptance of hardware takes in two places. The preliminary
acceptance will be based on the inspection and quality reports and test carried out at the contractor’s premises and
29B
will be for the purpose of movement of hardware. Final acceptance will be at the site based on the final inspection
/ functional checks to be carried out on receipt at site.
HTFE 25 Project: The Company has taken up the design and development of Hindustan Turbo Fan Engine (HTFE-
25) in 2013-14 with a time frame of 6 years for completion. The Core Engine 2, Run completed and development
activities of TD Full Engine run and Design Configuration review are under progress. An amount of ` 15923 Lakhs
(Previous year - ` 15542 Lakhs) has been accounted under Intangible Assets under Development . It is assessed
30A that, further development activities involve development of flight worthy engine for certification on a particular
platform would require at least another 5 years or so. Keeping this in view and also that there is no visibility of any
progress of any commitment/ orders for the Product, the Intangible Asset review Committee has recommended for
impairment of total expenditure incurred on this project. Accordingly, ` 15923 lakhs has been impaired (Previous
year - `15542 lakhs).
HTT 40 Project: The Company has undertaken the design and development of Hindustan Turbo Prop
Trainer Aircraft ( HTT- 40). Taking into the capability of the proposed Turbo Prop Aircraft, market studies, upgrade
functionality etc. requirement of 290 Aircraft (70 Aircraft for IAF and 220 Aircraft for other customers) has been
projected by the Company.
30B
The Company continues to fund the HTT Design and Development program.
Hence the expenditure of ` 2444 lakhs (Previous year - `3493 lakhs) has been treated as Development Expenditure
and accounted under Intangible Assets under Development
Special Tools includes ` Nil Lakhs (31.03.2021 - `434 lakhs) towards COMPASS Project at Bharat Electronics
30C Limited (BEL), on behalf of MRO Division against which Company derives future economic benefits for repair of
electro optical pods.
One upgraded Mirage 2000 Aircraft crashed during customer acceptance flight at HAL Airport, Bangalore on 1st
February 2019. HAL has taken an insurance policy for ` 3412 lakhs for HAL efforts and material used in repair
31A / overhaul, and preferred the claim with the Insurance company for ` 3447 lakhs. An amount of ` 3181 lakhs
has been adviced for payment by Insurance Company after deducting 1% policy Administration charges (Claim
admitted ` 3215 lakhs less ` 34 lakhs), the disbursement is awaited.
DDP/MoD Paid Advance of ` 8800 lakhs to HAL towards conducting Def Expo-2022.The event got postponed
31B while HAL had incurred expenditure of ` 3200 lakhs. Pending completion of audit of expenses by the O/o PCDA
Bangalore, the balance of ` 5600 lakhs is shown under note-32 Other financial liability.

(` in Lakhs)
Financial instruments by category

(a) The carrying value and fair value of financial instruments by each category as at 31st March 2022 were as follows:
Particulars Financial Financial Financial Total Total Fair
assets/ assets/ assets/ Carrying Value
liabilities at liabilities at liabilities at Value
amortised costs FVTPL FVTOCI
Assets:
(i) Investments 118402 118402 118402
(ii) Loans 1429 1429 1429
32 (iii) Other financial assets 142804 142804 142804
(iv) Trade receivables 464155 464155 464155
(v) Cash and Cash equivalents 306914 306914 306914
(vi) Bank balances other than (v) 1127447 1127447 1127447
(vii) Contract Assets 780865 780865 780865
Liabilities:
(i) Borrowings
(ii) Trade payables 255977 255977 255977
(iii) Other financial liabilities 237492 237492 237492
(b) The carrying value and fair value of financial instruments by each category as at 31st March 2021 were as follows:
assets/ assets/ assets/ Carrying Value
liabilities at liabilities at liabilities at Value
amortised FVTPL FVTOCI
costs
Assets:
(i) Investments 94926 94926 94926
(ii) Loans 1524 1524 1524
(iii) Other financial assets 138674 138674 138674
(iv) Trade receivables 566955 566955 566955
(v) Cash and Cash equivalents 714148 714148 714148
(vi) Bank Balances other than (v) 2485 2485 2485
(vii) Contract Assets 844768 844768 844768
Liabilities:
(i) Borrowings 907 907 907
(ii) Trade payables 226073 226073 226073
(iii) Other financial liabilities 244311 244311 244311
(c) Interest income/(expenses), gains/(losses) recognised on financial assets and liabilities:
Particulars For the year For the year

ended ended
(i) Financial assets at amortised cost
- Interest income from bank deposits 34657 2009
- Interest income from other financial assets 7781 6793
- Gain/(Loss) on amortisation of financial assets 2130 4159
(ii) Financial liabilities at amortised cost
- Gain/(Loss) on amortisation of financial liabilities -2443 -4223

(` in Lakhs)
Financial Risk Management

The Company is exposed to market risk, credit risk and liquidity risk which may impact the fair value of its financial
instruments. The Company, based on its business operation, evaluated the following risks:
a) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in exchange rates. The Company’s exposure to the risk of changes in exchange rates relates primarily to
the Company’s imports for which the payment has to be done in currencies other than the functional currency
of the Company. The fluctuation in exchange rates in respect to the Indian rupee may have very restricted
impact on company as any fluctuations in foreign exchange are in general reimbursed by the customers of the
Company in terms of the contractual obligations which the Company has with its customers.
b) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument
fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally
from trade receivables, loans & advances, advances given to suppliers (for procurement of goods, services
and capital goods), cash & cash equivalents and deposits with banks and financial institutions. The Company
for the Financial Year (FY) derived 93% (31st March 2021 - 94%) of its total sales from sales to the Indian
Defence Services. The Company expects to continue to derive most of its sales from the Indian Defence
Services under the contracts of the Ministry of Defence (MoD), Government of India (GoI) –the Company’s
33
principal shareholder and administrative ministry.
Ageing Analysis of Trade Receivables :
Ageing 0-30 days 31-60 61-90 91-120 121-180 more than Total
past due days past days past days past days past 181 days
due due due due past due
Net carrying amount as at 69231 32680 32284 29997 34422 265542 464155
31st March 2022
Net carrying amount as at 156391 52588 29423 52038 46843 229671 566955
31st March 2021
c) Provision for expected credit losses:
As the Company’s debtors are predominantly the Government of India (Indian Defence Services, Ministry of
External Affairs), Central Public Sector Undertakings where the counter - parties have sufficient capacity to
meet the obligations and where the risk of default is nil / negligible. Accordingly, impairment on account of
expected credit losses is being assessed on a case to case basis in respect of dues outstanding for significant
period of time as per the accounting policy of the Company. Further, management believes that the unimpaired
amounts that are due is collectable in full, based on historical payment behaviour and extensive analysis of
customer credit risk.
d) Liquidity risk:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. Typically, the Company
ensures that it has sufficient cash on demand to meet expected operational expenses including the servicing
of financial obligations. The Company’s standard contract terms provide that, the Company receives advance
payments from customers pursuant to the applicable contracts, including the Government of India and the
Indian Defence Services at the time of signing of any contract and milestone payments on achievement
of physical milestones. These payments are utilized to meet the Company’s working capital needs (for
the Company required to maintain a high level of working capital because the Company’s activities are
characterized by long product development periods and production cycles). A majority of the Company’s
research, design and development costs are funded by the Indian Defence services. Services and supply of
spares are governed by the Fixed Price Quotation (FPQ) policy for fixation of the prices wherein the prices are

(` in Lakhs)
fixed for the base year with escalation parameters for a pricing period of 5-7 years. The process of fixation
of prices and approvals takes a minimum period of two years after the expiry of previous pricing period. In
the interim, the approved prices of the previous pricing period are continued and payments are accordingly
realised and on finalisation of the revised prices, the differential prices are paid to the Company. Further,
certain costs not forming part of selling price are reimbursed by customer on incurrence of expenditure. The
reimbursement is based on verification and issuance of audit certificate by the payees. There are delays in
the above process due to unanticipated variations/adjustments in the scope and schedule of the Company’s
obligations due to subsequent modifications by the customers and delays in receipt of approvals from the
customer. Further, payments to the Company by the Indian Defence Services are reliant on the continuing
availability of budgetary appropriations by Government of India and any disruptions to the availability of such
appropriations could adversely affect the Company’s cashflows.
e) Market risk:
The Ministry of Defence (MoD) and the Government of India (GoI) have continued efforts to reform
Defence related policies such as the Defence Acquisition Procedure 2020 (“DAP 2020”) to promote private
33 participation, a level playing field and the domestic Defence manufacturing Industry and eco-system. While
the MoD has given the highest priority to Indigenously Designed, Developed and Manufactured (“IDDM”)
products for capital procurement, the Company faces competition to be selected as the Indian production
agency for such contracts. These policies have raised the level of market competition in the areas in which the
Company operates.
f) Risk Mitigation Process:
As a step of institutionalizing the risk management in the Company, an elaborate framework has been
developed and the Company’s top management has overall responsibility for the establishment and oversight
of the Company’s risk management framework. An important purpose of the framework is to have a
structured and comprehensive risk management system across the Company which ensures that the risks are
being properly identified and effectively managed. The Company has a risk management policy to manage &
mitigate these risks. The risk management process includes risk identification, risk assessment, risk evaluation,
risk mitigation and regular review and monitoring of risks.The Company’s risk management policy aims to
reduce volatility in financial statements while maintaining balance between providing predictability in the
Company’s business plan along with reasonable participation in market movement.
g) COVID-19 Impact
Second wave of Covid-19 has forced the Company to declare for a phased lockdown at various Divisions on
substitution basis during April and May 2021. The employees have put in additional hours for the hours lost
during lockdown period. The lost man hours was recovered in June and July 2021. The Company has shown
improved performance in the last three Quarters (July – March 2022). Hence, there is no significant impact
during the year ended 31st March 2022.
Based on the information available ( internal as well as external) up to the date of approval of this financial
result, Company expects to recover the carrying amount of Intangible assets, Inventories, Property, Plant and
Equipment’s, Lease, Financial Instruments, Trade Receivables etc. Efforts are being made to minimize the
impact. The Company will continue to closely monitor the developments, the future economic and business
outlook and its impact on Company’s future financial statements with a view to minimize the Covid impact.

(` in Lakhs)
Capital Management:
For the purpose of the Company’s capital management, capital includes issued equity capital and all other
equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital
management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders, return capital to shareholders or issue new shares.
34
The Company monitors capital by using debt equity ratio, which is borrowings divided by Equity.
Debt 907
Equity 1926400 1536818
No. of times 0.00:1 0.00:1
No changes were made in the objectives, policies or processes for managing capital during the period ended 31st
March 2022 and 31st March 2021.
Borrowing Cash Credit (Note - 30)
Details of lender A Consortium of 7 banks comprising of State Bank of India (lead bank), Bank of
Baroda, Indian Bank, Canara Bank, Punjab National Bank, Union Bank of India and
Indian Overseas Bank.
Limit `400000 lakhs as Cash Credit (including ` 240000 Lakh of Commercial Paper)
35 Purpose Working Capital Requirements
Security Paripassu first charge on stocks and receivables of the Company with other consortium
banks
Interest Rate Interest rates ranging between TBLR to MCLR based at monthly rests.
Credit Rating (other [ICRA]AAA/Stable/ICRA A1+ by ICRA & CARE AAA/Stable/ CARE A1+ by CARE
than Commercial Paper)
UN-HEDGED FOREIGN CURRENCY EXPOSURE
As at 31st March 2022 As at 31st March 2021
Foreign Amount in INR Foreign Amount in INR
Currency (in lakhs) Currency (in lakhs)
RECEIVABLES
GBP 260611 255 16441 16
EURO 285965 238 3997088 3379
USD 7858820 5890 5257645 3823
36 RBL 299562 3 72566 1
PAYABLES
GBP 39246377 39591 23570247 24148
EURO 56583103 48623 33736674 29494
USD 121772511 93122 106996117 79402
CHF 122439 101 462908 367
JPY 165750000 1043 207628783 1399
CAD 657158 404

(` in Lakhs)
The Ministry of Corporate Affairs vide notification no 1/2/2014-CL-V dated 23rd February 2018 has exempted the
37 Government companies engaged in Defence production to the extent of application of Ind AS 108 on “Operating
Segment”.
As per Ind AS-109 relating to Accounting for Investments, amount being Dividend received from Joint Venture
38
companies, which is recognised when right to receive Dividend is established.
Disclosure with regard to Joint Working Groups
The Company has entered into two Joint Working Agreements with Air India (AIJWG) to start Ramp Handling Business
and with CONCOR(HALCON) to carry out Air Cargo Handling Business. The Joint Working Group pools together the
resources for carrying out its business activity and ownership of the assets vests with the respective working group.
Share of profit from Joint Working Groups of the Company with Air India
and CONCOR:
AIJWG 168 139
HALCON 8 4
Total 176 143
Disclosure with regard to Joint Working Group
AIJWG HALCON
39 Name of the Joint Working Group 31st March 31st March 31st March 31st March
2022 2021 2022 2021
Country of Operation India India India India
Share of Company/ Ownership 50.00% 50.00% 50.00% 50.00%
Interest
Principal Activities Flight Handling Flight Handling Cargo Handling Cargo Handling
Liabilities - Company's Share 2251 2078 420 402
Non-Current Assets - Company's share - 166 160
Current Assets - Company's share 2251 2078 254 242
Income - Company's Share 221 182 163 143
Expenditure - Company's Share 53 43 155 139
Profit / (Loss) Company's Share 168 139 8 4
Contingent Liability - - - -
Break-up of Deferred Tax Liabilities and Assets are given below:
(a) As at 31.03.2022
Particulars As at Additions / Additions/ As at
1st April, 2021 (reversals) (reversals) 31st March,
in Income recognized in 2022
statement Equity
Deferred Tax Liability
40A Tangible Assets 11767 846 12613
Intangible Assets 52149 2744 54893
Special Tools and Equipment 88677 -3475 85202
Recognition of revenue in relation to LCA 884 0 884
(due to modification of Contract)
TOTAL 153477 6728 160205

(` in Lakhs)

01st April (reversals) (reversals) 31st March
2021 in Income recognized in 2022
statement Equity
Deferred Tax Asset
Provision for Accrued Leave Salary for Note -27 27879 489 28368
& Note -34
Provision fo Replacement charges, Warranty, 85162 54462 139624
Raw Material, Doubtful debts, Claims
Provision for onerous contract and Liquidated 32201 4490 36691
Damages(Note -27 and Note -34)
Other design sales and wage revision and 1159 0 1159
Recognition of sales with respect to Performance
Related Pay and Wage Revision
OCI Items 12309 -1390 10919
TOTAL 158710 58050 216762
Net Deferred Tax Assets 5235 51322 56558
(b) As at 31.03.2021
1st April (reversals) (reversals) 31st March
2020 in Income recognised in 2021
statement Equity
Deferred Tax Liability
Tangible Assets 13671 -1904 11767
40A
Intangible Assets 50006 2143 52149
Special Tools and Equipment 87151 1526 88677
Recognition of revenue in relation to LCA(due 884 0 884
to modification of Contract)
Gratuity & PF 4547 -4547
TOTAL 156260 -2782 153477
Deferred Tax Asset
Provision for Accrued Leave Salary for Note -27 27125 754 27879
& Note -34
Provision for Replacement charges, Warranty, 86585 -1423 85162
Raw Material, Doubtful debts, Claims
Provision for onerous contract and Liquidated 59125 -26924 32201
Damages (Note -27 and Note -34)
Wage Revision 16596 -16596
Other design sales and wage revision and 1159 0 1159
Recognition of sales with respect to Performance
Related Pay and Wage Revision
OCI Items 12679 -370 12309
TOTAL 203269 -44559 158710
Net Deferred Tax Assets 47011 -41776 5235

(` in Lakhs)

ended ended
A reconciliation of the income tax provision to the amount computed
by applying the statutory income tax rate to the income before taxes is
summarised below:
Profit before taxes 523115 427738
Enacted tax rates 25.168% 25.168%
Expected tax expense/(benefit) 131658 107653
Effect of :
Deductible expense for tax purpose:
Expenditure on Scientific Research u/s. 35
Other Deductible Expenditure 3467 76
Provisions for Warranty, Replacement, Onerous Contracts, Doubtful Debts, 18
Claims & Materials etc.(Net)
40B Non-deductible expenses for tax purposes:
Sustainable Development and Corporate Social Responsibility 1816 1978
Impairment of long term investments 140
Other Non Deductible Expenses
Earlier Year Tax -119273 -4933
Diminution provision for long term investments 288
Taxation impact on Ind AS Adjustment 79 16
Gratuity and PF -3550 -1485
Rounding off 128 182
Business Loss
Tax Expense 14465 103793
Amount of Income Tax relating to each component of OCI:
Remeasurement of Defined Benefit Plans 4940 -2450
Exchange Differences in translating the financials statements of a foreign
Operations
Pursuant to the Orders passed for the Assessment years 2007-08, 2010-11 to 2015-16, giving effect to the orders
of the Appellate authority, CY ` 119273 lakhs (PY ` 4933 lakhs for the Assessment years 2005-06 and 2006-07)
provision no longer required is credited under Tax expense and consequent interest income of CY ` 26273 lakhs
41 (PY `4791 lakhs) is included in other income. Pending passing of Revision order by the Assessing officer, giving
effect to the Income Tax Appellate Tribunal Orders for AY 2011-12 to AY 2014-15 estimated refund of `107329
lakhs and the interest thereon ` 41175 lakhs is not recognised and will be given effect in the year in which the
revision order is passed by the Assessing Officer.

(` in Lakhs)
Earned Leave
The Actuarial Liability of Earned Leave of the employees of the Company 112716 110772
42A for the period ended
Discounting Rate 7.30% 6.80%
Salary escalation rate 8.00% 8.00%
Retirement Age 60 Years 60 Years
Particulars For the year For the year

ended ended
Provident Fund
42B
During the period, the Company has recognized the following amount in
the Statement of Profit and Loss account
Defined Benefit Plan
Contribution to PF and Family Pension 28472 29281
Pension & Medical
During the period, the Company has recognized the following amount in
the Statement of Profit and Loss account
42C
Defined Contribution Plan
Contribution to Pension 16342 15846
Contribution to Medical 13346 12632
Provision for Gratuity and Earned Leave has been made based on Actuarial Valuation. The date of Actuarial
valuation is 31st March 2022.
43 Employee Benefits:
The Company has adopted the Ind AS-19 on Employee Benefits. Consequently, the liability thereon is accounted
on the basis of actuarial valuation, and is being recognised as short-term benefits / long term benefits.
43A Gratuity:
The Company has a Gratuity Scheme for its employees, which is a funded plan. Every year the Company funds to
the Gratuity Trust to the extent of shortfall of the assets over the fund obligations, which is determined through
actuarial valuation. As per the Gratuity Scheme, Gratuity is payable to an employee on the cessation of his
employment after he has rendered continuous service for not less than 5 (five) years in the Company. For every
completed year of service or part thereof in excess of six months, the Company shall pay Gratuity to an employee at
the rate of 15 (fifteen) days’ emoluments based on the emoluments last drawn with a ceiling of ` 20 (twenty) Lakhs.
The following tables summarise the components of net benefit expense recognised in the Statement of Profit
and Loss and the funded status and amounts recognised in the Balance Sheet for the plan as furnished in the
Disclosure Report provided by the Actuary:

(` in Lakhs)
Gratuity:
Analysis of Defined Benefit Obligation:
A split of the defined benefit obligation as at the valuation date between liability which has not vested and that
which has fully vested is presented in the table below:
Period Ended
DBO in respect of non vested employees 606 534
DBO in respect of vested employees 167323 176418
Total defined benefit obligation 167929 176952
The component of the defined benefit obligation which is attributable to future salary increases is shown in the
table below:
Period Ended
31 March 2022
st
31st March 2021
Defined benefit obligation without effect of projected salary growth 104266 109200
Plus effect of salary growth 63663 67751
Defined benefit obligation with projected salary growth 167929 176952
Sensitivity Analysis:
Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in
43A demographic assumptions. Sensitivity analysis indicates the influence of a reasonable change in certain significant
assumptions on the outcome of the Present value of obligation(PVO) and aids in understanding the uncertainty
of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impact. The
key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and
future salary escalation rate. The following table summarizes the impact in percentage terms on the reported
defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the
reported assumption by 50 basis points.
Particulars Period Ended

31st March 2022
Discount Rate Salary
Escalation Rate
Impact of increase in 50 bps on DBO -6.37% 1.48%
Impact of decrease in 50 bps on DBO 5.95% -1.73%
Particulars Period Ended

31st March 2021
Discount Rate Salary Escalation
Rate
Impact of increase in 50 bps on DBO -5.06% 1.84%
Impact of decrease in 50 bps on DBO 5.50% -2.10%

(` in Lakhs)
These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and
assuming there are no other changes in market conditions at the accounting date. There have been no changes
from the previous periods in the methods and assumptions used in preparing the sensitivity analysis.
Projected Plan Cash Flow

Maturity Profile 31st March 2022 31st March 2021
Expected benefits for year 1 23,930 25,660
Expected benefits for year 10 and above 370,042 378,304
Total 471,610 484,245
43A The weighted average duration to the payment of these cash flows is 10.64 years 10.89 years
Amount recognised in Balance Sheet:

Present value of funded defined benefit obligation 167929 176952
Fair value of plan assets 173569 173778
Net funded obligation -5640 3174
Net defined benefit liability / (asset) recognized in balance sheet -5640 3174
Net defined benefit liability / (asset) is bifurcated as follows:
Non Current -5640 3174
Amount recognised in Statement of Profit & Loss:
Current Service Cost 8,358 8,801
Past Service Cost
Administration expenses
Interest on net defined benefit liability / (asset) 108 831
(Gains) / losses on settlement
Total expense charged to Statement of Profit and Loss 8,466 9,632

(` in Lakhs)
Amount recognised in Other Comprehensive Income:

Opening amount recognized in OCI outside Profit and Loss account 51,143 57,601
Remeasurements during the period due to
Changes in financial assumptions -9,994 1,853
Changes in demographic assumptions
Experience adjustments -1,275 -6,323
Actual return on plan assets less interest on plan assets -3,004 -3,334
Adjustment to recognize the effect of asset ceiling 167 1,346
Closing amount recognized in OCI outside Statement of Profit and 37,037 51,143
Loss
Reconciliation of Net Liability / Asset:

The movement of net asset / (liability) from the beginning to the end of the accounting period as recognized in the
Balance Sheet of the Company is shown below:
Opening net defined benefit asset / (liability) -3174 -24093
Expense charged to profit & loss account -8466 -9632
43A Amount recognized outside profit & loss account 14106 6458
Employer contributions 3174 24093
Impact of liability assumed or (settled)*
Closing net defined benefit asset / (liability) 5640 -3174
MOVEMENT IN BENEFIT OBLIGATIONS:

Opening of defined benefit obligation 176952 179854
Current service cost 8358 8801
Interest on defined benefit obligation 11436 11755
Remeasurements due to:
Actuarial loss / (gain) arising from change in financial assumptions -9994 1853
Actuarial loss / (gain) arising from change in demographic assumptions
Actuarial loss / (gain) arising on account of experience changes -1275 -6323
Benefits paid -17548 -18988
Liabilities assumed / (settled)*
Liabilities extinguished on settlements
Closing of defined benefit obligation 167929 176952

(` in Lakhs)
MOVEMENT IN PLAN ASSETS:

A reconciliation of the plan assets during the inter-valuation period is given below:
Opening fair value of plan assets 173778 155761
Employer contributions 3174 24093
Interest on plan assets 11328 10924
Remeasurements due to:
Actual return on plan assets less interest on plan assets 2837 1988
Benefits paid -17548 -18988
Assets acquired / (settled)*
Assets distributed on settlements
Closing fair value of plan assets 173569 173778
* On account of business combination or inter group transfer
DISAGGREGATION OF PLAN ASSETS:

43A Particulars 31st March 2022
Quoted Value Non Quoted Total
Value
Property
Government debt instruments 500 500
Other debt instruments
Insurer managed funds 172992 172992
Others 78 78
- 173570 173570
Particulars 31st March 2021

Quoted Value Non Quoted Total
Value
Property -
Government debt instruments 1000 1000
Insurer managed funds 172729 172729
Others 48 48
- 173777 173777
Principal Assumptions :
Particulars 31st March 2022 31st March 2021
Discounting Rate (p.a.) 7.30% 6.80%
Salary escalation rate (p.a.) 8.00% 8.00%

(` in Lakhs)
The exempt provident fund set up by the company is a defined benefit plan under Ind AS 19 Employee Benefits.
Provident Fund for eligible employees is managed by the Company through a trust in line with the Provident
Fund and Miscellaneous Provision Act, 1952. The plan guarantees interest at the notified by the Provident Fund
Authorities. The contribution by the employer and employee together with the interest accumulated thereon are
payable to employees at the time of separation from the Company or retirement, whichever is earlier. The benefits
vests immediately on rendering of the services by the employee.
The minimum interest rate payable by the trust to the beneficiaries every year is notified by the Government. The
Company has an obligation to make good the shortfall, if any, between the return from the investments of the trust
43B(i)
(including investment risk fall) and the notified interest rate.
The Company has obtained report on the determination and disclosure of interest rate Guarantee & Diminution of
Asset Values as per Ind AS19 of Employees Exempt Provident Fund of HAL for the period ended 31st March 2022.
In view of uncertainties regarding recoverability of certain investments in ILFS, Dewan Housing, Reliance Capital,
syntax, Srei equipment finance etc., liability was created during 2019-20 and 2020-21. Further as per the settlement
made by Dewan Housing and considering stressed investment in Future Enterprises Ltd during 2021-22, the liability
recognised in earlier years is reversed during the year ended 31st March 2022 by ` 5313 lakhs (Previous year -
accounted liability of `15468 lakhs).

(` in Lakhs)
The Total Amount of net liability / asset to be recorded in the Balance Sheet
As at 31.03.2022
EMPLOYEES’ PROVIDENT FUND TRUST HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ Total
Expense recognised in the
Statement of Profit & Loss:
Current service cost 12992 3762 2541 1682 1559 841 1180 505 25062
Net Interest (lncome) / Expense 241 (139) 254 (164) (13) 17 44 (32) 208
Net periodic benefit cost recognised 13233 3623 2795 1518 1546 858 1224 473 25270
in the statement of profit & loss at
the end of period
Amounts recognised in statement
of Other Comprehensive

Income(OCI):
Opening amount recognized in OCI 26489 5433 8735 509 3046 1621 2643 433 48909
outside profit and loss account
Remeasurements for the period - 1183 (2031) (4563) (1298) (3049) (1336) (1297) 762 (11629)
Obligation (Gain) / Loss
Remeasurement for the period - Plan (826) 370 2586 558 3494 458 602 (1135) 6107
43B(ii) assets (Gain) / Loss
Total Remeasurements Cost / (Credit 357 (1661) (1976) (740) 445 (878) (695) (373) (5522)
) for the year recognised in OCI
Closing amount recognised in OCI 26846 3772 6759 (231) 3491 743 1948 60 43387
Reconciliation of Net Asset /
(Liability) recognised :
Net asset / (liability) recognised at the (26021) (5058) (9068) (457) (2942) (1611) (2622) (405) (48184)
beginning of the period

Employer's Contributions 12992 3762 2541 1682 1559 841 1180 505 25062
Benefits directly paid by Company
Amount recognized outside profit & (357) 1661 1976 740 (446) 878 695 373 5520
loss account for the year
Expense recognised at the end of (13233) (3622) (2795) (1518) (1546) (858) (1224) (473) (25269)
period
Impact of Transfer (ln) / Out*
Net asset / (liability) recognised at the (26619) (3257) (7346) 447 (3375) (750) (1971) - (42871)
end of the period
(` in Lakhs)
As at 31.03.2022
EMPLOYEES’ PROVIDENT FUND TRUST HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ Total
Changes in present value of
Benefit obligation:
Present value of benefit obligation as 249430 121044 98771 33457 59098 31718 38577 12114 644209
at the beginning of the period
Transfer in / (out)* (81) (1666) (3615) (289) 544 197 (229) 1595 (3544)
Interest cost 15311 7918 6400 1990 3617 1974 2496 712 40418
Current Service Cost 12992 3762 2541 1682 1559 841 1180 505 25062
Employee Contribution 31966 10456 8123 4061 4711 1877 2772 1254 65220
Benefits paid (48538) (9213) (9303) (8378) (11825) (5364) (3740) (3292) (99653)
Remeasurements due to: -
Acturial loss/(gain) arising from (8986) (4305) (3393) (1149) (1464) (578) (1564) (374) (21813)
change in financial assumptions
Acturial loss/(gain) arising from -
change in demographic assumptions
Acturial loss/(gain) arising on account 10169 2274 (1170) (149) (1585) (758) 268 1137 10186
of experience changes
43B(ii) Closing of defined benefit obligation 262263 130270 98354 31225 54655 29907 39760 13651 660085
Changes in Fair value of Plan
Assets:
Fair value of plan assets as at the 223408 115987 89703 33000 56156 30107 35956 11709 596026

Transfer in / (out)* (81) (1666) (3615) (289) 544 197 (229) 1595 (3544)
Interest Income 15070 8057 6146 2154 3630 1957 2452 744 40210
Employee's Contributions 31966 10456 8123 4061 4711 1877 2772 1254 65220
Benefits paid (48538) (9213) (9303) (8378) (11825) (5364) (3740) (3292) (99653)
Shortfall arising on account ot asset
dimunition

Amount paid on settlement
Actuarial Gain / (Loss) on plan assets 826 (371) (2586) (558) (3494) (458) (602) 1136 (6107)
245
end of the period
(` in Lakhs)
As at 31.03.2021
EMPLOYEES’ PROVIDENT FUND HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ Total
TRUST
Expense recognised in the
Statement of Profit & Loss:
Current service cost 13221 4179 2193 864 1811 915 1088 433 24704
Net Interest (lncome) / Expense (467) (376) 334 (52) (104) (10) (21) (28) (724)
Net periodic benefit cost recognised 12754 3803 2527 812 1707 905 1067 405 23980
in the statement of profit & loss at
the end of period
Amounts recognised

in statement of Other
Comprehensive Income(OCI):
Opening amount recognized in OCI 14399 2798 9400 63 2470 1445 1734 408 32717
Remeasurements for the period - 13189 2550 3648 434 1183 1007 1895 117 24023
Obligation (Gain) / Loss
Remeasurement for the period - (1099) 85 (4314) 12 (607) (831) (986) (92) (7832)
Plan assets (Gain) / Loss
Total Remeasurements Cost / (Credit) 12090 2635 (666) 446 576 176 909 25 16191
43B(ii)
for the year recognised in OCI
Closing amount recognised in OCI 26489 5433 8734 509 3046 1621 2643 433 48908
Reconciliation of Net Asset /
(Liability) recognised :
Net asset / (liability) recognised at (14399) (2798) (9400) (63) (2470) (1445) (1734) (408) (32717)
the beginning of the period
Benefits directly paid by Company
Amount recognized outside profit & (12090) (2635) 665 (446) (576) (176) (909) (25) (16192)
loss account for the year
Expense recognised at the end of (12754) (3803) (2527) (812) (1707) (905) (1067) (405) (23980)
period
Impact of Transfer (ln) / Out* 0
Net asset / (liability) recognised at (26022) (5058) (9068) (457) (2942) (1611) (2622) (405) (48185)
the end of the period
(` in Lakhs)
As at 31.03.2021
EMPLOYEES’ PROVIDENT FUND HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ Total
TRUST
Changes in present value of
Benefit obligation:
Present value of benefit obligation 224293 102517 88391 31722 58779 31856 32989 11434 581981
as at the beginning of the period
Transfer in / (out)* 811 (1586) (3622) 518 (406) (454) 324 915 (3500)
Interest cost 13920 6874 5937 2088 3640 1996 2176 696 37327
Current Service Cost 13221 4178 2193 864 1811 915 1088 433 24703
Employee Contribution 29117 12307 6929 765 6141 2256 3006 1202 61723
Benefits paid (45121) (5795) (4706) (2934) (12050) (5858) (2901) (2683) (82048)
Remeasurements due to: -
Acturial loss/(gain) arising from (3551) (2721) (783) (335) (553) (235) (453) (41) (8672)
change in financial assumptions
Acturial loss/(gain) arising
from change in demographic
assumptions
Acturial loss/(gain) arising on 16740 5271 4431 769 1736 1242 2348 158 32695
account of experience changes
43B(ii) Closing of defined benefit 249430 121045 98770 33457 59098 31718 38577 12114 644209
obligation
Changes in Fair value of Plan
Assets:
Transfer in / (out)* 811 (1586) (3622) 519 (406) (454) 324 915 (3499)
Interest Income 14387 7249 5602 2139 3744 2006 2198 725 38050
Employee's Contributions 29117 12307 6930 765 6141 2255 3006 1202 61723
Benefits paid (45121) (5795) (4706) (2933) (12050) (5858) (2900) (2683) (82046)
Shortfall arising on account ot
asset dimunition
Amount paid on settlement

Actuarial Gain / (Loss) on plan
1099 (85) 4314 (12) 607 831 986 92 7832
assets
247
Fair value of plan assets as at
223408 115987 89703 33000 56156 30107 35956 11709 596026
the end of the period
(` in Lakhs)
The following table summarizes the disclosure report provided by the Actuary: As at 31.03.2022 (Ind AS 19)
EMPLOYEES’ PROVIDENT FUND TRUST* HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ
Summary of Data:
Total PF Account Balance 262262 130270 98355 31673 54654 29907 39759 13651
Investment in (Default/Stress) or surplus -26619 -3258 -7346 0 -2700 (750) (1971)
investment income
Weighted Average Remaining Tenure of 6.11 6.87 6.11 6.14 4.47 5.48 4.16 6.36
the investment Portfolio (in years)
Amounts to be Recognized in Balance
Sheet:
Present Value of Obligation at the end of 262262 130270 98355 31226 54654 29907 39759 13651

the period
Fair Value of the Plan Assets at the end 235643 127012 91009 31673 51279 29157 37789 13651
of the year
Net (asset) / liability recognised in balance 26619 3258 7346 (447) 3375 750 1970 -
sheet
Major Categories of Plan Assets (as %
of Total Plan Assets):
43B(iii)
Government of India Securities 60% 44% 47% 52% 49% 82% 48% 61%
High Quality Corporate Bonds 27% 28% 32% 26% 33% 0% 37% 28%
Equity shares of listed companies 2% 6% 5% 3% 1% 5% 7%
Bank Balance 1% 1% 1% 1% 3% 1% 3%
Special deposit scheme 6% 7% 7% 2% 5% 5% 4% 6%
Receivable from HAL 1%

Others (refundable loans) 4% 14% 8% 16% 12% 5% 2% 2%
Total 100% 100% 100% 100% 100% 100% 100% 100%
Summary of Principal Actuarial
Assumptions:
Discount Rate (p.a) 7.30% 7.30% 7.30% 7.30% 7.30% 7.30% 7.30% 7.30%
Interest Rate declared by EPFO for the year 8.10% 8.10% 8.10% 8.10% 8.10% 8.10% 8.10% 8.10%
Yield Spread 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expected rate of return on plan assets 6.80% 6.80% 6.80% 6.80% 6.80% 6.80% 6.80% 6.80%
Average Historic Yield on the Investment 8.18% 8.65% 7.57% 8.67% 8.75% 8.57% 8.67% 8.33%
* In case of inter-divisional transfer of employees moneys standing to the credit of the employees in the trust accounts will be transferred to
the trust accounts of the division to which he is posted.
(` in Lakhs)
The following table summarizes the disclosure report provided by the Actuary: As at 31.03.2021 (Ind AS 19)
EMPLOYEES’ PROVIDENT FUND TRUST* HAL(BC) NASIK KORAPUT HYDERABAD LUCKNOW KORWA KANPUR HQ
Summary of Data:
Total PF Account Balance 244927 118907 95639 33000 58356 31157 37626 11709
Investment in (Default/Stress) or surplus -21519 -2920 -5936 0 -2200 -1050 -1670
investment income
Weighted Average Remaining Tenure of 8.93 6.59 5.94 6.06 4.47 5.16 4.95 6.66
the investment Portfolio (in years)
Amounts to be Recognized in Balance
Sheet:
Present Value of Obligation at the end of 249430 121044 98771 33457 59098 31718 38578 12114
the period
Fair Value of the Plan Assets at the end of 223408 115987 89703 33000 56156 30107 35956 11709
the year
Net (asset) / liability recognised in balance sheet 26022 5057 9068 457 2942 1611 2622 405
Major Categories of Plan Assets (as % of
Total Plan Assets):
43B(iii) State Government Securities 32%
Government of India Securities 62% 46% 46% 48% 46% 50% 49% 60%
High Quality Corporate Bonds 25% 31% 32% 31% 34% 38% 29%
Equity shares of listed companies 2% 4% 5% 3% 2% 5% 4% 5%
Bank Balance
Special deposit scheme 6% 8% 7% 2% 4% 5% 4% 3%
Receivable from HAL
Others (refundable loans) 5% 11% 10% 16% 14% 8% 5% 3%

Total 100% 100% 100% 100% 100% 100% 100% 100%
Summary of Principal Actuarial
Assumptions:
Discount Rate (p.a) 6.80% 6.80% 6.80% 6.80% 6.80% 6.80% 6.80% 6.80%
Interest Rate declared by EPFO for the year 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Yield Spread 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expected rate of return on plan assets 6.90% 6.90% 6.90% 6.90% 6.90% 6.90% 6.90% 6.90%
Average Historic Yield on the Investment 8.58% 8.37% 7.57% 8.44% 8.75% 8.57% 8.90% 8.33%

* In case of inter-divisional transfer of employees moneys standing to the credit of the employees in the trust accounts will be transferred to
249
the trust accounts of the division to which he is posted.
(` in Lakhs)
43C The Company has provided Performance Related Pay for the year as per the Guidelines issued by DPE.
Pension:
In line with the Guidelines issued by the Department of Public Enterprises, Ministry of Heavy Industries & Public
Enterprises, Govt. of India for revision of the Salary Structure of Executives of CPSEs with effect from 1st January,
2007 and as per the approval accorded by the Board of Directors and Department of Defence Production, Ministry
of defence, a Defined Contribution Pension Scheme was notified in the Company on 16th July, 2014 in respect of
Executives retired etc., from 1st January, 2007.
43D
A Defined Contribution Pension Scheme in respect of Workmen retired after 1st January, 2012 was notified on 2nd
June, 2015 which was agreed as a part of the Workmen’s Wage Revision effective from 1st January, 2012.
Contribution to the corpus of the above schemes by the Management may vary from year to year as the same is
dependent on profits generated, affordability & sustainability by the Company.
The Scheme is managed by a duly constituted Trust.
Post Superannuation Group Health Insurance Schemes:
In line with the Guidelines issued by the Department of Public Enterprises, Ministry of Heavy Industries & Public
Enterprises, Government of India and as per the approval accorded by the Board of Directors and Department of
Defence Production, Ministry of defence, Post Superannuation Group Health Insurance Schemes in respect of (a)
Employees (Officers & Workmen) retired before 1st January, 2007 and (b) Executives retired on or after 1st January,
2007 were introduced with effect from 1st February, 2014.
43E
A Post Superannuation Group Health Insurance Scheme in respect of Workmen of the Company retired, etc. after
1st January, 2007 has been introduced in the Company with effect from 1st February, 2015 which was agreed as a
part of the Workmen’s Wage Revision effective from 1st January, 2012.
Benefits under the Schemes may vary from year to year, as contribution to the Corpus of the Schemes is dependent
on Profits generated, Affordability & Sustainability by the Company.
The Schemes are managed by a duly constituted Trust.
HAL Employees Group Life Insurance Trust:
As per the approval accorded by the Board, the Company has notified an insurance scheme namely the HAL
Employees Group Life Insurance Trust to cover its employees, in case of death due to any reason other than suicide.
43F The contribution towards the scheme are borne equally by employees and the Management. In the event of Death
of an employee due to any reason other than suicide, the dependent family members will be paid the sum assured
(` 10 lakhs). The Company has made contribution of ` 481 lakhs to the trust with employees contribuitng an
equal amount.
Revision of pay scales of executives and workmen, with effect from 01.01.2017 was implemented in accordance
with the guidance issued by DPE vide OM dated 03.08.2017 for Executives and in accordance with the Wage
Agreement entered into between Management and Employees Union representative in 2019-20 in respect of
Workmen.
On an interpretation on pay refixation and pursuant to the directives of the Administrative Ministry, the pay
43G fixation to be revised and the excess amount paid is to be recovered from the employees.
This has resulted in reduction of salaries and wages for the year ended 31 March 2022 by ` 5256 lakhs (Previous
year: `14450 lakhs) and a consequential reduction in sales revenue for the year ended 31 March 2022 by `812
lakhs (Previous year: `5677 lakhs)

(` in Lakhs)
While so, the Employees Union and Officers Association have filed Writ Petition with Hon’ble High Court of
Karnataka to stay recovery of excess amount of salary paid by the Company. The Honorable High Court has
granted interim stay on recoveries, pending disposal of the writ petitions by the High court, the excess amount is
shown under claims recoverable Note No.19 for `24489 lakhs (Previous year `19368 lakhs)
43G In respect of employees who retired prior to 30 June, 2021, provision is made for the amount recoverable `2584
lakhs (Previous year: `2680 lakhs).
The amount withheld from employees who retired after 30th June 2021 is kept under other liabilities `1835 lakhs
(Previous year: ` NIL).
Based on the final order that may be passed, suitable effect will be carried out in the accounts.
The Board in its 436th meeting held on 25th June 2020 accorded approval to introduce the HAL Employees Voluntary
Retirement Scheme-2020 subject to approval of the Administrative Ministry in light of the present economic
43H circumstances and changing business scenario and to operate economically to reduce surplus manpower and
high labour cost to withstand the competition from private companies. Administrative Ministry approval for the
scheme is awaited.
Financial Assitance Scheme for Dependents of Deceased Employee
As per the approval accorded by the Board, the Company has notified “Financial Assistance Scheme for dependents
of Deceased Employees (FASDDE)” to pay a fixed amount on monthly basis to surviving spouse or dependent
children if the spouse is not surviving, till the notional date of superannuation of the deceased employee. The
prime objective of the scheme is to provide financial support for dependent beneficiaries of the employees who
die while in service, to enable them to lead a normal life. The scheme will be applicable in all cases of Death of
43I
an employee due to any other reason other than suicide. Fund of ` 4000 lakhs and a trust will be established for
management of the Corpus. The income generated from the Corpus which will be invested with M/s LIC will be
utilized to make payments under the Scheme.
During the year `4000 lakhs paid to Trust for creation of Corpus and `418 lakhs has been incurred as expenditure
under Financial Assistance Scheme for Dependents of Deceased Employee which is included in note 40 - Staff
Welfare expenditure.
As per Ind AS-21 relating to accounting for the effects of changes in the As at As at
44
Foreign Exchange rates, 31st March 2022 31st March 2021
Exchange rate variation recognised in Statement of Profit and Loss towards 17 9
(a)
Capital Assets.
As and when the instalments in respect of deferred debts falls due for payment to the Russian Federation, the
same is paid by applying the exchange rate ruling on the date of actual payment and liability discharged. The
differences arising due to recalculation of debts at the applicable /ruling rate is charged to the revenue at the time
of payment and recognised as sales when realised from the customer except to the extent it pertains to Capital
(b)
Assets. The sales for Exchange Rate Variation (ERV) considered is `3971 Lakhs (31st March 2021 - ` 4106 Lakhs).
The Assets and Liabilities relating to deferred credit transaction are reinstated under Non-current Other Financial
Assets, Current Other Financial Assets (recoverable within one year), Non-current Other Financial Liabilities and
Current Other Financial Liabilities (to be settled within one year).

(` in Lakhs)
45A DISCLOSURE RELATING TO Ind AS-24 ON RELATED PARTY
The name of the transacting M/s. M/s. M/s. Sa- M/s. M/s. M/s. M/s. M/s. M/s. M/s. Inter- M/s. M/s Aer- M/s M/s M/s M/s Indo
related party Indo BAe HAL fran HAL SAMTEL HAL-Edge- HALBIT Infotech HATSOFF Tata HAL national Multirole ospace & Helicop- Defence Nainee Russian
Russian Software Aircraft HAL wood Avionics HAL Heli- Technol- Aerospace Trans- Aviation ter MRO Inno- Aero- Helicop-
Aviation Limited Engines Display Technol- Private Limited copter ogies Manufac- port Sector Engines vation space ters Pvt
Limited Private Systems ogies Limited* Training Ltd. turing Pvt. Aircraft Skill Pvt. Ltd Organi- Ltd Ltd
Ltd Limited Private Private Ltd. Ltd. Council sation
Limited Ltd.
Country of incorporation India India India India India India India India India India India India India India India India
(a) Proportion of Ownership 48% 49% 50% 40% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 100% 50.50%
Interest
Description of the Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Subsid- Subsid-
(b) relationship between the Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture iary iary
parties
Description of the nature of the Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase
transactions and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale and sale

(c) of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods of goods
and and and and and and and and and and and and and and and and
services services services services services services services services services services services services services services services services
Volume of the transactions 6,967 425 2,622 56 185 2 8 487
either as an amount or as an
appropriate proportion on
Purchase of Goods and Services
and other expenses
(d) Previous year 31st March 2021 (5,830) (592) - (1,232) - (91) (172) - (30) - - - (7) - (556) -
Volume of the transactions 50 605 16
appropriate proportion on Sale
of Goods and Services
Previous year 31st March 2021 (373) - - - - - - - - (496) - - - - (150) -
Amounts or appropriate 11,192 210 314 296 16 4 100 217
proportions of outstanding
items pertaining to related
parties at the Balance Sheet

date on Purchase of Goods and
Services and other expenses
Previous year 31st March 2021 (8,283) (290) - (32) (2) (394) (7) - - - - - (100) - (513) -
(e)
Amounts or appropriate 12 440 456 239 12 606 1 32 23 1,345 69
proportions of outstanding
items pertaining to related
parties at the Balance Sheet
date on Sale of Goods and
Services and other expenses
Previous year 31st March 2021 (6) (296) - - (439) (145) - (527) - (753) (2) (65) - (4) (1,107) (65)
Rent, Water and Electricity 4 173 6 18 55 732 241 11 10
(f) Expenses
Previous year 31st March 2021 (3) (163) - - (35) (54) - (62) - (225) (20) (70) - - - (65)
(` in Lakhs)
45A DISCLOSURE RELATING TO Ind AS-24 ON RELATED PARTY
The name of the transacting M/s. M/s. M/s. Sa- M/s. M/s. M/s. M/s. M/s. M/s. M/s. Inter- M/s. M/s Aer- M/s M/s M/s M/s Indo
related party Indo BAe HAL fran HAL SAMTEL HAL-Edge- HALBIT Infotech HATSOFF Tata HAL national Multirole ospace & Helicop- Defence Nainee Russian
Russian Software Aircraft HAL wood Avionics HAL Heli- Technol- Aerospace Trans- Aviation ter MRO Inno- Aero- Helicop-
Aviation Limited Engines Display Technol- Private Limited copter ogies Manufac- port Sector Engines vation space ters Pvt
Limited Private Systems ogies Limited* Training Ltd. turing Pvt. Aircraft Skill Pvt. Ltd Organi- Ltd Ltd
Ltd Limited Private Private Ltd. Ltd. Council sation
Limited Ltd.
Advances Outstanding on 1 34
(g) Purchases of Goods and Services
Previous year 31st March 2021 - - (1) (197) (52) - - - - - - - - - - -
Advances Outstanding on Sale 919
of land
Previous year 31st March 2021 - - - - - - - - - - - - - - - -
Allowances recognised in 17 94 -515 343
respect of Doubtful debts
(h) during the year
Previous year 31st March 2021 - - - - (37) (39) - (58) - - - - - - (68) -
Dividend on Investments 187 9
(i)
Previous year 31st March 2021 (94) - - - - - - - - (17) - - - - - -
Re-imbursement of Salaries 82 20 43 35 23
(j) including KMP Salaries
Previous year 31st March 2021 (67) - - - - (40) - - - (52) - - - - - -
Re-imbursement of Expenses 6
(k)
Previous year 31st March 2021 - - - - - - - - - - - - - (4) - -
Provision for doubtful debts 456 239 12 1,087
related to the amount of
(l) outstanding balances
Previous year 31st March 2021 - - - - (439) (145) - (527) - - - - - - (744) -
(m) Grant outstanding as on 4,500
Balance sheet Date

Previous year 31st March 2021 (4,500)
(n) Write Off of Advance 374
Previous year 31st March 2021 -
The differences in the amount disclosed by the Company and JV's are due to reconciliation items.
* Does not include disputed amount of `1686 lakhs (31st March 2021 - ` 1686 lakhs), as the same is shown under clause 2(b) in respect of M/s HALBIT Avionics Private Ltd.
Figures in brackets relates to Previous Year (as at 31st March 2021)
Transaction with the related parties are made on normal commercial terms and at market rates.
Key Management Personnel of the Company in Joint Ventures are as follows:
Shri R.Madhavan, Chairman and Managing Director

Shri Alok Verma - Director (Human Resources)
Shri Arup Chatterjee, Director - Engineering and R&D
253
Shri C. B. Ananthakrishnan - Director ( Finance) & CFO
Shri G. V. Sesha Reddy - Co. Secy
The total salaries including perquisites drawn by the above key Management Personnel from Joint Ventures is Nil.
(` in Lakhs)
The Company makes monthly contributions to provident fund managed by “The Provident Fund of HAL” for
eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The Company contributed to PF Trust during the year is given below.
Name of PF Trust For the period For the period
ended ended
1. HAL - Bangalore Complex 12992 13221
2. HAL - Nasik 3762 4179
45A(i)
3. HAL - Koraput 2541 2193
4. HAL - Hyderabad 1682 864
5. HAL - Lucknow 1559 1811
6. HAL - Korwa 841 915
7. HAL - Kanpur 1180 1088
8. HAL - Corporate Office 505 433
Total 25062 24704
The Company maintains gratuity trust for the purpose of administering the gratuity payment to its employees
(HAL Employees Gratuity scheme). During the year, the Company contributed `18525 Lakhs (Previous Year -
45A(ii) `15580 Lakhs) and as on 31-03-2022 the amount payable is NIL (Previous year ` 3174 Lakhs), amount receivable
is ` 17022 lakhs ( Previous Year ` 17999 lakhs) and Advance paid to Gratuity trust is ` 5640 lakhs (Previous year
NIL).
The Board in its 406th meeting held on 22nd September 2017, accorded in principle approval for voluntary winding
up / closure of the three Joint Ventures i.e. M/s. HAL-Edgewood Technologies Private Limited, M/s. Tata HAL
Technologies Ltd and M/s. Multirole Transport Aircraft Ltd. enabling the Company to take further action in the
matter.
Further, the Board authorized the Company to seek approval of Ministry of Defence (MoD), for short closure of
the Contracts associated with the M/s Multirole Transport Aircraft (MTA) project and request MoD, to initiate
necessary action for closure of IGA, as it is a prerequisite for winding up of the MTA - Joint Venture Company.
Further, MOD vide its letter dated 14th October 2021 notified the termination of the agreement between the Govt.
of the Republic of India and Govt. of Russian Federation. In this respect the Russian Federation vide its letter dated
20th April 2022 intimated that the decision of the Indian side has been taken into consideration.
45B
Further in 435th meeting held on 16th March 2020, the Board has directed the Company to expedite the closure of
M/s. Multirole Transport Aircraft Ltd at the earliest after taking clearance from Russian partners from their Board
(refer Clause No.10).
The Board in its 440th meeting held on 9th December 2020, accorded in principle approval for voluntary winding
up / closure of Joint Venture M/s. Infotech HAL Limited(IHL) enabling the Company to take further action in the
matter.
TATA HAL Techonologies Limited, Pursuant to the Board Resolution dated 08th June 2021, the company has filed
the application for voluntary liquidation to MCA in terms of Section 59 of the Insolvency and Bankruptcy Code,
2016 and the official liquidator is appointed.

(` in Lakhs)
Defence Innovation Organisation (“DIO”):

A Section 8 Company has been formed (Under Companies Act 2013) in the name of “Defence Innovation
Organisation” with M/s BEL with an authorised Capital of ` 100 lakhs (Paid up capital as on 31st March 2022 is
` 1 Lakh (HAL 50% Share and BEL 50% Share). The registered office of DIO is situated at Centre for Learning and
Development, Bharat Electronics Limited, Jalahalli, Bengaluru – 560013, Karnataka, India. DIO was incorporated
to implement the scheme of defence innovation fund initiative by creation of an ecosystem to foster innovation
45C and technology development in defence.
HAL Board in its 417th meeting held on 30th July 2018 had accorded approval for release of ` 5000 lakhs to DIO
towards initial corpus fund in form of Grant in Aid in a staggered manner. Accordingly ` 500 lakhs has been
released to DIO in the month of August 2018 and the balance amount is recognised and disclosed in other finanial
liabilities - other liabilities (note 32).
The Board in its 434th meeting was informed that Government approval is not required for transfer of lease
hold land to M/S Helicopter Engines-MRO Private Limited (HE-MRO), as it is neither Defence land nor it is a land
owned by HAL. Board reconsidered the decision taken in its 431st meeting and approved transfer of land without
Government approval to M/s HE-MRO.
45D
The company has received a sum of `919 lakhs from HE-MRO for transfer of lease hold land at Goa to HE MRO for
right of use assets and the transfer of land is pending for registration, accordingly the carrying amount of right of
use assets of `811 lakhs has been disclosed as asset held for sale and ` 919 lakhs received from HE-MRO disclosed
under note 32 Non current - other liabilities in accordance with Ind AS 105.
Promoters of HE-MRO have decided to restart the activities of the Company on improvement of the Covid-19
situation. To meet its financial requirement, HE-MRO in its 33rd Board meeting held on 30th July 2021 decided to
raise funds by way of Right issue of 20 lakh equity shares to the existing shareholders at par value of `100 per
45E share.HE-MRO has sent Right issue offer letter to existing shareholders including HAL. This matter was put up to
Board of Directors of HAL in its 449th Meeting held on 21st September 2021, and the Board has accepted the Right
issue offer.
Consequent to the same, Rs.1000 lakhs has been paid to HE-MRO towards equity participation in Rights issue of
HE-MRO Private Limited on 30.09.2021. The Company has been allotted 10 lakh Equity shares of `100 each on
11th November 2021 against the share application money paid.

(` in Lakhs)
Clause No. Key Management Personnel in the ForParticulars
the year ended For the year ended
Company 31st March 2022 31st March 2021
Particulars Salary Company Total Salary Company Total
Contribu- Contribu-
tion to PF tion to PF /
/ Gratuity Gratuity
1. Shri R Madhavan, Chairman and 70 5 75 63 5 68
Managing Director
2. Shri Alok Verma, Director 58 5 63 53 4 57
(Human Resources)
3. Shri C. B. Ananthakrishnan, 62 5 67 56 5 61
Director (Finance) & CFO
4. Shri M.S.Velpari, Director 53 4 57 53 4 57
(Operations)
45F 5. Shri Arup Chatterjee, Director 59 5 64 55 5 60
(Engineering and R&D)
6. Shri G.V. Sesha Reddy 41 4 45 35 3 38
(Company Secretary)
Shri R. Madhavan was appointed as Chairman and Managing Director with effect from 1st September 2018
Shri C.B.Ananthakrishnan was appointed as Director(Finance) and CFO with effect from 1st August 2018
Shri M.S.Velpari ceased to be Director(Operations) consequent upon superannuation on 28th February 2022
Shri Arup Chatterjee was appointed as Director (Engineering and R&D) with effect from 1st June 2018
Shri Alok Verma was appointed as Director (Human Resources) with effect from 1st January 2020.
PART TIME NON-OFFICIAL DIRECTORS Sitting Fees

1. Rear Admiral K.C Sekhar AVSM,VSM (Retd), Independent Director 3
45G
2. Dr. S Malla Reddy, Independent Director 2
3. Dr. Divya Gupta, Independent Director 2
Total 7
Apart from transactions reported above, the Company has transactions with other Government related entities,
which includes but not limited to the following:
45H Name of Government: Government of India
Nature of Transactions: Sale of Products and Services
These transactions are conducted in the ordinary course of the Company’s business

(` in Lakhs)
The disaggregation of changes to OCI is shown below:
For the period ended 31st March 2022

Particulars Opening Additions/ Transferred Closing
balance Reversal to Retained balance as
as at 1st earnings at 31st March
April 2021 2022
Gains and losses arising from the financial 16 16
statements of a foreign operations
Re-measurement gains (losses) on defined 14687 14687
benefit plans (Gratuity/PF)
46 Total 16 14687 14687 16
For the period ended 31 March 2021
st
Particulars Opening Additions / Transferred Closing

balance Reversal to Retained balance as at
as at 1st April earnings 31st March
2020 2021
Gains and losses arising from the financial 16 - 16
statements of a foreign operations
Re-measurement gains (losses) on defined -63853 -7283 -71136
benefit plans (Gratuity/PF)
Total -63837 -7283 -71136 16
As per Ind AS-33 relating to Earnings per Share (Basic and Diluted) For the year For the year
ended ended
Profit Before Tax 523115 427738
Provision for Taxation 14465 103793
Net Profit After Tax 508650 323945
47 Weighted Average Number of Equity Shares of Face Value of `10/- each 334387500 334387500
fully paid up
Earnings per Share (in Rupees) - Basic 152.11 96.88
Earnings per Share (in Rupees) - Diluted 152.11 96.88
Buyback of Shares:
In accordance with the approval of Board of Directors at its 408th meeting held on 28th November, 2017 and
approval of shareholders, the Company has bought back 2,71,12,500 fully paid equity shares of `10/- each
48A
equivalent to 7.5% of the paid -up share capital and Free Reserves of the Company, for an aggregate amount
of ` 92150 lakhs (excluding tax of ` 20636 lakhs) at ` 339.88 per equity share from the President of India. The
consideration amount for buy back of shares was paid to the Government of India on 19th December, 2017 and
the shares so bought back were extinguished on 22nd December, 2017.

(` in Lakhs)
The Government of India, on 27th August 2020 – 28th August 2020 made an offer for sale (OFS) upto 15% of
48B the paid up equity share capital, out of its shareholding of 89.97%, in order to achieve the mandatory threshold
of 25% minimum public shareholding by a listed Company. Consequent to the OFS, the Government of India
shareholding stands at 75.15%.
For the year For the year

ended ended
48C 17,643 6,385

As required by Ind AS 36, the Company has accounted impairment losses
on intangible assets based on the Assessment of Impairment assets
committee carried out during the year and based on such assessment
‘impairment loss’ in the Statement of Profit and Loss has been recognised.
Movement of provisions in the Books of Accounts during the year as required by Ind AS 37 “Provisions,
Contingent Liabilities and Contingent Asset” is as follows:
Nature of Provision Opening Provision Utilisation Reversal Closing
Balance 1st made during during the during the Balance 31st
April 2021 the year year year March 2022
Provision for Warranty Charges 82581 51544 20562 4238 109325
(Previous Year - 31 March 2021)
st
(65384) (32561) (12897) (2467) (82581)
Provision for Replacement and Other 153272 78729 8682 5465 217854
Charges
(Previous Year - 31st March 2021) (181747) (21175) (26554) (23096) (153272)
Provision for Redundancy in Raw 133241 56005 8 3002 186236
Material and Components, Stores and
Spares, Construction Material, Loose
Tools and Work in progress
49 (Previous Year - 31st March 2021) (92528) (43009) (1) (2295) (133241)
Provision for Doubtful Debts 16362 105568 2520 119410
st
(15972) (1426) (1) (1035) (16362)
Provision for Claims 29050 7120 4904 31266
(Previous Year - 31st March 2021) (31896) (3017) (33) (5830) (29050)
Provision for Liquidated Damages 127943 74395 54573 1979 145786
st
(202740) (43875) (118672) (127943)
Provision for Impairment of Investments 17961 557 18518
st
(16816) (1145) (17961)
Provision for Onerous contract
(Previous Year - 31st March 2021) (32183) (32183)
Total 560410 373918 83825 22108 828395
st
(639266) (146208) (190341) (34723) (560410)
* Figures in brackets relate to previous year.

(` in Lakhs)
Nature of Provision As at 31st March 2022 As at 31st March 2021

Long Short Total Long Short Total
Term Term Provision Term Term Provision
Provision Provision Provision Provision
Provision for Warranty Charges 4700 104625 109325 4032 78549 82581
Provision for Replacement and Other 15179 202675 217854 12544 140728 153272
Charges
Provision for Redundancy in Raw Material 186236 186236 133241 133241
49 and Components, Stores and Spares,
Construction Material, Loose Tools and
Work in progress
Provision for Claims 14385 16881 31266 19211 9839 29050
Provision for Liquidated Damages 7331 138455 145786 11332 116611 127943
Provision for Impairment of Investments 18518 18518 17961 17961
Sensitivity of estimates on provisions:

The assumptions made for provisions relating to current period are consistent with those in the earlier years. The
assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood
could alter in next financial year. It is impracticable for the Company to compute the possible effect of assumptions
and estimates made in recognizing these provisions.
Provision for replacement and other charges represents, amounts towards expenditure incurred from the date
of Signaling Out Certificate (SOC) to date of ferry out, loan items taken from the customer which needs to be
replaced etc.
Warranty represents Performance Warranty for manufacture, repair and overhaul of Aircraft / Helicopters/ Engines
/ Rotables, supply of spares and development activities etc.
Provision for Redundancy in Raw Material and Components, Stores and Spares, Construction Material, Loose Tools
and Work in progress represents provision on redundancy of such materials, completed / specific projects and
50 other surplus / redundant materials pending transfer to salvage stores etc.
Provision for Liquidated Damages represents amounts provided for the period of delay between the due date
of supply of the Goods / rendering of services as per delivery schedule and the expected Date of delivery of said
Goods / rendering of service in respect of manufacture / repair and overhaul of Aircraft / Helicopters/ Engines /
Rotables, supply of spares and development activities etc.
Provision for doubtful debts is being assessed on a case to case basis in respect of dues outstanding for a significant
period of time. Debts from the Government departments are generally treated as fully recoverable and hence the
Company does not recognize credit risk of such financial assets.
Provision for doubtful claims represents provision on expected credit losses.
Impairment in value of investment represents reduction in the share of net worth below investment.
Provision for Onerous contract has been recognised as the cost of meeting obligations is over and above the
economic benefits expected to be received under it.

(` in Lakhs)

ended ended
Information regarding income and expenditure of Investment
property
As per Ind AS 40 - Investment property:
Rental income derived from investment properties 1240 694
Direct operating expenses (including repairs and maintenance) generating - -
51
rental income
Direct operating expenses (including repairs and maintenance) that did not - -
generate rental income
Profit arising from investment properties before depreciation and Indirect 1240 694
expenses
Less – Depreciation - -
Profit arising from investment properties before Indirect expenses 1240 694
Fair value of investment property
As at 31st March, 2022, the fair value of properties is ` 9627 lakhs as valued by an Registered Valuer as defined
under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
Advances from Customers of ` 1044022 Lakhs and Milestone receipts of ` 1622203 Lakhs disclosed in Note Nos.
29 and 33 as Non-Current and Other Current Liabilities (in terms of Schedule III to the Companies Act, 2013)
represent gross amounts received. These amounts have been utilised for procurement of Special Purpose Tooling,
Incurrence of DRE, Inventory Holding, Advances to Vendors etc. as detailed below:
Note 29 Note 33 Note 29 Note 33
Non - Current Current Non - Current Current
Outstanding Advances from Customer
- Defence 608833 430963 618072 506698
- Others 4226 4272
608833 435189 618072 510970
Less: Utilisation of Advances
- Inventory 32553 337507 37689 373812
52 - Advances against Goods & Services 19980 17991
- Intangible Assets 135 7948
- Special Tools & Equipment 8920 282 8920 35044
- Trade Receivables 1665 6299
- Claims Receivables 765 89
41473 360334 46609 441183
Net Outstanding Advances (A) 567360 74855 571463 69787
Outstanding Milestone Receipt
- Defence 610354 941864 286372 1063923
- Others 7057 62928 12686 80442
617411 1004792 299058 1144365

(` in Lakhs)

Note 29 Note 33 Note 29 Note 33
Non - Current Current Non - Current Current
Less: Utilisation of Milestone Receipts
- Inventory 90289 589442 84674 568921
- Advances against Goods & Services 43480 73325 1019 52526
- Intangible Assets 2949 19645 3127 10397
- Special Tools & Equipment 49912 89249 30402 73288
- Trade Receivables 6041 17532 2469
- Claims Receivables 5100 6710
192671 794293 119222 714311
Net Outstanding Milestone Receipts (B) 424740 210499 179836 430054
Total (A+B) 992100 285354 751299 499841
52 Particulars 31st March 2022 31st March 2021

Summary
(A) Gross Advances from Defence Customers
Initial Advances from Defence Customers 1039796 1124770
Milestone Advances from Defence Customers 1552218 1350295
Gross Advances from Defence Customers (A) 2592014 2475065
Advances from Others (B) 74211 97400
Total (A+B) 2666225 2572465
Less Advances / Milestone utilisation (C) 1388771 1321325
Outstanding Advances / Milestone Receipts (A+B-C) 1277454 1251140
Defence Customers 1204553 1157475

Others 72901 93665
Total 1277454 1251140

(` in Lakhs)
Trade Receivables Ageing schedule (Note - 15)
Particulars As at 31st March 2022
53(a) Outstanding for following periods from due date of payment Unbilled Not due Total
Less than 6 months - 1-2 years 2-3 years More than
6 months 1 year 3 years
(i) Undisputed Trade receivables - 198613 115864 105430 34477 9771 - - 464155
considered good
(ii) Undisputed Trade receivables - which - - - - - - - -
have significant increase in credit risk
(iii) Undisputed Trade receivables - credit 2 7 169 5 13874 - - 14057
impaired
(iv) Disputed Trade receivables - considered - - - - - - - -
good
(v) Disputed Trade receivables - which - - - - - - - -
(vi) Disputed Trade receivables - credit - - - - - - - -
impaired
Less : Allowance for Doubtful Debts 2 7 169 5 13874 - - 14057
Total 198613 115864 105430 34477 9771 - - 464155

Outstanding for following periods from due date of payment Unbilled Not due Total
(i) Undisputed Trade receivables - 337284 94334 92634 33840 8863 - - 566955
considered good
(iii) Undisputed Trade receivables - credit - 117 2204 - 11185 - - 13506
impaired
(iv) Disputed Trade receivables - - - - - - - - -
considered good
impaired
Less : Allowance for Doubtful Debts - 117 2204 - 11185 - - 13506
Total 337284 94334 92634 33840 8863 - - 566955
Contract Assets Ageing schedule (Note - 15A)

(i) Undisputed Trade receivables - 416,027 114,219 145,053 62,633 85,255 58,047 - 881,234
considered good
(ii) Undisputed Trade receivables - which - - - - 4,752 - - 4,752
(iii) Undisputed Trade receivables - credit - - - 232 - - - 232
impaired
53(b) good
(v) Disputed Trade receivables - which have - - - - - - - -
significant increase in credit risk
impaired
Less : Allowance for Doubtful Debts 3,399 1,837 9,344 10,073 67,072 13,628 - 105,353
Total 412,628 112,382 135,709 52,792 22,935 44,419 - 780,865

(` in Lakhs)

(i) Undisputed Trade receivables - 338455 86648 220150 115079 30191 57101 - 847624
considered good
(iii) Undisputed Trade receivables - credit - - - - - - - -
impaired
53(b) good
impaired
Less : Allowance for Doubtful Debts - - - - 509 2347 - 2856
Total 338455 86648 220150 115079 29682 54754 - 844768
Trade Payables Ageing schedule (Note - 31)

Outstanding for following periods from due date of Unbilled Not due Total
payment
Less than 1-2 years 2-3 years More than
1 year 3 years
(i) Micro enterprises and Small enterprises 3647 127 5 0 0 796 4575
(ii) Otherthan Micro enterprises and Small enterprises 199860 11525 3560 30774 5323 360 251402
(iii) Disputed dues - Micro enterprises and Small 0 0 0 0 0 0 0
enterprises
(iv) Disputed dues - Otherthan Micro enterprises and 0 0 0 0 0 0 0
Small enterprises
Total 203507 11652 3565 30774 5323 1156 255977
54(a) Particulars As at 31 March 2021

st
1 year 3 years
(i) Micro enterprises and Small enterprises 5158 51 0 0 0 0 5209
(ii) Otherthan Micro enterprises and Small enterprises 158966 20463 2615 21776 17045 0 220864
(iii) Disputed dues - Micro enterprises and Small 0 0 0 0 0 0 0
enterprises
(iv) Disputed dues - Other than Micro enterprises and 0 0 0 0 0 0 0
Small enterprises
Total 164124 20514 2615 21776 17045 0 226073

(` in Lakhs)
55 Additional Regulatory Information:

Title deeds of Immovable Property not held in name of the Company as at 31st March 2022
Relevant Description of item of Gross Title deeds held in Whether title Property held Reason for not being held in the
line item in property Carrying the name of deed holder is a since which date name of the company**
the Balance value promoter, director
Sheet or relative of
promoter/ director
of employee of
promoter/director
PPE Land 1 Various Persons, N/A 1950's Approx. Compendium Error. Estate department is
72.675 acres Bangalore in possession of Hand book with land ac-
quired in various survey numbers called as
Compendium. Few title documents are not
available as per the compendium.
Land 4 No title deed N/A Since begin- We have been informed that posses-
401.19 acres ning but date sion of the said immovable property was
is not available handed over to Hindustan Aeronautics
Limited(HAL)by district Land Acquisition
Officer and Indian Air Force , therefore no
title deed is required to be executed under
Government Grants Act, 1895.(Section 2
Government Grants are exempted from
the operation of the Transfer of Property
Act)
Ghaukhera 0.00 Exhibited as N/A 13/12/1965 Land acquired and handed over to HAL
16.81 acres Audhyogik krishik, by District Land Acquisition Officer, case
Land in Govt. filed with SDM for transfer of name in title
record, Kanpur deed.
Chak kuriyan 0.00 Not appearing N/A 22/12/1965
7.92 acres in govt. record,
Kanpur
Dahli Sujanpur 0.00 Appearing as N/A 15/12/1965
55A 3.11 acres Vayuyaan Colony,
Kanpur
Land at Kasbe Sukena 0.00 Govt. of Mahar- NO Since inception Railway siding land is not in use by HAL &
Railway Station : ashtra of the Nashik to be returned to approriate authority of
Approx. 196.22 Acres Factory in 1964 State Government. Division is continuous-
of rail siding ly following up the matter. At present the
matter is with the Sub Divisional Magis-
trate, Niphad for necessary action
Land at Ojhar : 0.00 Govt. of Mahar- NO Since inception Matter is being followed up with Sub Di-
Approx. 68.95 Acres ashtra of the Nashik visional Magistrate, Niphad for making
of land given by State Factory in 1964 indenture.
Government.
Land - 39.32 Acres 286 Lucknow Develop- N/A 19.05.1986 The land is in the possessions of the divi-
ment Authority sion, however, same is to be registered in
the name of the division by Lucknow De-
velopment Authority.
Building NIL
Investment Land NIL

Property
Building NIL
Non- Land NIL

current
asset held
for sale
Building NIL
Others NIL

(` in Lakhs)
Title deeds of Immovable Property not held in name of the Company as at 31st March 2021
Relevant Description of item of Gross Title deeds held in Whether title Property held Reason for not being held in the
line item property Carrying the name of deed holder is a since which date name of the company**
in the value promoter, director
Balance or relative of
Sheet promoter/ director
of employee of
promoter/director
PPE Land 1 Various Persons N/A 1950's Approx. Compendium Error. Estate department is
72.675 acres in possession of Hand book with land ac-
quired in various survey numbers called as
Compendium. Few title documents are not
available as per the compendium.
Land 4 No title deed N/A Since begin- We have been informed that posses-
401.19 acres ning but date sion of the said immovable property was
is not available handed over to Hindustan Aeronautics
Limited(HAL)by district Land Acquisition
Officer and Indian Air Force , therefore no
title deed is required to be executed under
Government Grants Act, 1895.(Section 2
Government Grants are exempted from
the operation of the Transfer of Property
Act)
Ghaukhera 0.00 Exhibited as N/A 13/12/1965
16.81 acres Audhyogik krishik,
Land in Govt.
record, Kanpur Land acquired and handed over to HAL
Chak kuriyan 0.00 Not appearing N/A 22/12/1965 by District Land Acquisition Officer, case
55A 7.92 acres in govt. record, filed with SDM for transfer of name in title
Kanpur deed.
Dahli Sujanpur 0.00 Appearing as N/A 15/12/1965
3.11 acres Vayuyaan Colony,
Kanpur
Land at Kasbe Sukena 0.00 Govt. of Mahar- NO Since inception Railway siding land is not in use by HAL &
Railway Station : ashtra of the Nashik to be returned to approriate authority of
Approx. 196.22 Acres Factory in 1964 State Government. Division is continuous-
of rail siding ly following up the matter. At present the
matter is with the Sub Divisional Magis-
trate, Niphad for necessary action
Land at Ojhar : 0.00 Govt. of Mahar- NO Since inception Matter is being followed up with Sub Di-
Approx. 68.95 Acres ashtra of the Nashik visional Magistrate, Niphad for making
of land given by State Factory in 1964 indenture.
Government.
Land - 39.32 Acres 286 Lucknow Develop- N/A 19.05.1986 The land is in the possessions of the divi-
ment Authority sion, however, same is to be registered in
the name of the division by Lucknow De-
velopment Authority.
Building NIL
Investment Land NIL

Property
Building NIL
Non- Land NIL

current
asset held
for sale
Building NIL
Others NIL

(` in Lakhs)
55B Company has not revalued its Property, Plant and Equipment, and therefore disclosure, whether the revaluation
is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and
Valuation) Rules, 2017 does not arise.
55C Company has not revalued its intangible assets, and therefore disclosure, whether the revaluation is based on the
valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules,
2017 does not arise.
55D Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as
defined under Companies, Act, 2013) either severally or jointly with any other person that are:
(a)
repayable on demand; or
(b) without specifying any terms or period of repayment.

Amount Percentage Amount Percentage
of loan or to the total of loan or to the total
Type of Borrower advance in Loans and advance in Loans and
the nature Advances in the nature Advances in
of loan the nature of of loan the nature of
outstanding loans outstanding loans
Promoters NIL NIL NIL NIL
Directors NIL NIL NIL NIL
KMPs NIL NIL NIL NIL
Related Parties NIL NIL NIL NIL

(` in Lakhs)
Capital Work-in-Progress(CWIP) Ageing schedule

CWIP As at 31st March 2022 As at 31st March 2021
Amount in CWIP for a period of Total Amount in CWIP for a period of Total
55E Less 1-2 years 2-3 years More Less than 1-2 years 2-3 years More
than than 3 1 year than 3
1 year years years
(i) Projects in progress 39494 19551 12757 22999 94801 20555 15085 23533 7042 66215
(ii) Projects temporarily suspended - - - - - - - - - -
Total (tally with accounts) 39494 19551 12757 22999 94801 20555 15085 23533 7042 66215
Capital Work-in-Progress(CWIP), whose completion is overdue or has exceeded its cost compared to its original
plan: CWIP completion Schedule
CWIP As at 31st March 2022 As at 31st March 2021
To be completed in To be completed in
Less than 1-2 years 2-3 years More than Less than 1-2 years 2-3 years More than 3
1 year 3 years 1 year years
Projects in progress
(i) Aerospace 29 - - 57 - -
55F (ii) LCH 599 - - - 599 - - -
(iii) ALH 142 95 69
(iv) LUH 3,013
(v) SU-30 18,336 6,029
(vi) General purpose CWIP 10,967 979 15,480 171
Projects where activity has been
suspended
(i)
Total 33,086 979 - - 22,260 240 - -
Intangible assets under development - Ageing schedule
Intangible assets under As at 31st March 2022 As at 31st March 2021
development Amount in CWIP for a period of Total Amount in CWIP for a period of Total
55G
Less than 1-2 years 2-3 years More than Less than 1-2 years 2-3 years More than
1 year 3 years 1 year 3 years
(i) Projects in progress 30884 24572 20278 82125 157859 24228 20735 38132 46545 129640
(ii) Projects temporarily suspended - - - - - - - - - -
Total(tally with accounts) 30884 24572 20278 82125 157859 24228 20735 38132 46545 129640
For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its
original plan: Intangible assets under development completion Schedule**
(CWIP) Intangible assets under development As at 31st March 2022 As at 31st March 2021
To be completed in To be completed in
Less than 1-2 years 2-3 years More than Less than 1-2 years 2-3 years More than 3
1 year 3 years 1 year years
55H Projects in progress

(i) Development projects 296 - - - 168 - - -
(ii) - - - - - - - -
Projects where activity has been
suspended
(i) - - - - - - - -
(ii) - - - - - - - -
Total 296 - - - 168 - - -
** Details of projects where activity has been suspended.

(` in Lakhs)
Details of Benami Property held as at 31st March 2022

Details of property (a) (b) (c ) (d) (e ) (f) (g)
year of Amount Details of If property If property Where there Nature of
acquisition thereof Beneficiaries is in the is not in the are proceed- proceedings,
books, then books, then ings against status of
reference to the fact shall the company same and
the item in be stated under this company's
the Balance with reasons, law as an view on
sheet abetter of the same
transaction or
as the trans-
feror then the
details shall
55I be provided
NIL NIL NIL NIL NIL NIL NIL

Details of property (a) (b) (c ) (d) (e ) (f) (g)
year of Amount Details of If property If property Where there Nature of
acquisition thereof Beneficiaries is in the is not in the are proceed- proceedings,
books, then books, then ings against status of
reference to the fact shall the company same and
the item in be stated under this company's
the Balance with reasons, law as an view on
sheet abetter of the same
transaction or
as the trans-
feror then the
details shall
be provided
Where the Company has borrowings

from banks or financial institutions
on the basis of security of current
55J assets
(a) Whether quarterly returns or statements The company has been sanctioned The company has been sanctioned working
of current assets filed by the Company working capital limits of ` 400000 lakhs, capital limits of ` 1000000 lakhs, non-
with banks or financial institutions are in non-fund based limits of ` 205000 fund based limits of ` 205000 lakhs by
agreement with the books of accounts. lakhs and Corporate loan of ` 183000 consortium of Bankers. As on 31.03.2021,
lakhs by consortium of Bankers. As on no fund based limits were utilised by the
31.03.2022, no fund based limits and company against the sanctioned limits.
Corporate Loans were utilised by the
company against the sanctioned limits. The quarterly stock statements filed by the
Due to timing differences in filing Company and the Books of Account are in
the quarterly stock statements with agreement.
the bank and finalisation of Audited

Accounts,there is a difference between
drawing power (DP) as submitted to
the Banks and DP assessed based on the
Quaterly Audited Accounts. However,
the differences are not material.
(b) if not, summary of reconciliation and
reasons of material discrepancies, if any
to be adequately disclosed

(` in Lakhs)
Wilful Defaulter
The company has not defaulted in payment of any dues to a Bank or Financial
institutions.
55K (a) Date of declaration as wilful defaulter NA NA
(b) Details of defaults(amount and nature of defaults) NA NA
The company did not have any transactions with any Struck off Companies(under section 248 of
55L
Companies Act, 2013) as certified by the Management.

Clause No.
Registration of charges or satisfaction with Registrar of Companies (ROC) There is no Charges or Satisfaction yet There is no Charges or Satisfaction yet
Where any charges or satisfaction yet to be registered with Registrar of to be registered with RoC beyond the to be registered with RoC beyond the
55M Companies beyond the statutory period, details and reasons thereof shall statutory period. statutory period.
be disclosed.
55N Compliance with number of layers of companies NA NA

Ratios : Numerator Denominator st st
31 March 31 March % Change Explanation for change in the ratio by
2022 2021 in Ratio more than 25% as compared to the
55O
preceding year
(a) Current Ratio Current Assets = Current Liabilities = 1.80 1.59 13.21%
Intentories(Note-13) + Borrowings(Note-30) +
Investments (Note-14) + Lease liability(Note30A)

Trade receivables(Note-15) + Trade
+ Contract Assets (Note- Payables(Note-31)
15A) + Cash and Cash + Other Financial
Equivalents (Note-16) + liabilities(Note-32)
Bank Balances other than + Other current
Cash and Cash Equivalents liabilities (Note-33) +
(Note-17) + Loans (Note- Provisions(Note-34)
18) +Other Financial + Current Tax
Assets (Note 19)+Current Liabilities(Net)(Note-35)
tax Assets(net)(Note-20)
+ Other Current Assets
(Note-21)
(b) Debt-Equity Ratio Total Debt = Non-current Shareholder’s Equity 0.00 0.00 0.00%
borrowing(Note-24) = Equity Share
Particulars
+ Current borrowing Capital(Note-22) +

working capital loan - Other Equity(Note-23)
Cash Credit (Note-30) +
Current borrowing from
Banks - Commercial
paper(Note-30)
(c ) Debt Service Earnings available for Debt Service = Finance - - - Not Applicable since, borrowed fund
Coverage Ratio debt service = Profit after cost(Note-41) + during the year is NIL.
Tax +Depreciation and Principal repayment
amortisation(Note-42)+
Finance Cost (Note-41) +
Loss on sale of assets
(d) Return on Equity Net Profits after taxes = Average Shareholder’s 0.29 0.23 29.55% Net Profit for the period increased due
Ratio Profit(Loss) for the period Equity = Shareholder's to differential sale on finalization of
Equity for current fixed price quotation.
period + previous
year /2
(e ) Inventory Sales = Total Sales (Note- Average Inventory = 1.57 1.24 26.45% There is a growth in sales during the
turnover ratio 36) Inventories (Note-13) current year as compared to previous
for current period + year and also there is a considerable
previous year / 2 reduction in holding of inventory in the
current period.
(` in Lakhs)
Clause No.
(f) Trade Receivables Sales = Total Sales (Note- Average Accounts 4.73 2.66 77.81% Debtors Turnover Ratio improved in FY
turnover ratio 36) Receivable = Trade 21-22 due to improved collection from
Receivables(Note-8 and customers.
Note-15) for current
period + previous
year / 2
(g) Trade payables Purchases = Purchases Average Trade Payables 3.25 2.77 17.36%
turnover ratio (Note-38) = Trade payables
(Note-25 and Note-31)
for current period +
previous year / 2
(h) Net capital Sales = Total Sales (Note- Average Working 1.39 1.77 -21.32% Increase in Working capital compared
turnover ratio 36) Capital = Total Current to PY due to improved collection from
Assets - Total Current customers.
55O
Liaibilities for current
period + previous
year / 2
(i) Net profit ratio Net Profit = Profit(Loss) for Sales = Total Sales 0.21 0.14 45.02% Net Profit for the period increased due
the period from continuing (Note-36) to differential sale on finalization of
operations fixed price quotation.
(j) Return on Capital Earning before interest Capital Employed 0.27 0.30 -6.98%
employed and taxes = Profit Before = Shares holder's
Tax + Finance Cost (Note- Equity + Long Term
41) Borrowings(Note-24)
+ Deferred tax
liability(Note-28)
(k) Return on NA
investment.
Particulars
55P Compliance with approved Scheme(s) of Arrangements NA

Utilisation of borrowed funds and share Premium through intermediaries or for benefit of third party beneficiaries:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company, its
subsidiary, associate 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 lend or invest in party identified by or on behalf of the Company, its subsidiary, associate, (Ultimate Beneficiaries).
55Q
The Company have not received any fund from any party(s) (Funding Party) with the understanding that the Company , its subsidiary, associate, shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company, its subsidiary, associate (”Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
55R Undisclosed Income
Details of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income NIL NIL
during the year in the tax assessments under the Income Tax Act, 1961(such as search or survey or any other relevant
provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme and previously
unrecorded income and related assets that have been properly recorded in the books of accounts during the year.

271
(` in Lakhs)
(` in Lakhs)
Corporate Social Responsibility

Particulars 31st March 31st March
2022 2021
(a)
amount required to be spent by the Company on CSR activities as per 7884 7191
Companies Act, 2013
31st March 2022
Particulars In Cash Yet to be Total*
55S
paid in Cash
(b) Amount of expenditure incurred during the year on CSR
activities
(i) Construction / Acquisition of any Assets 3,801 492 4,293
(ii) On purposes other than (i) above 2,923 - 2,923
Total 6,724 492 7,216
31st March 2021

Particulars In Cash Yet to be Total
paid in Cash
(b) Amount of expenditure incurred during the year on CSR
activities
(i) Construction / Acquisition of any Assets 3,178 937 4,115
(ii) On purposes other than (i) above 3,548 196 3,744
Total 6,726 1,133 7,859
* ` 7884 lakhs being 2% budget allocation as per Companies Act, 2013 and ` 884 lakhs surplus, generated in financial year 2020-21 through
savings in energy charges from the Wind Power Plant established by the Company at Davanagere District, Karnataka as a CSR project which
were utilised for other CSR projects/ activities during financial year 2021-22 and after adjusting ` 668 lakhs excess CSR expenditure incurred
during 2020-21 total CSR expenditure to be spent during 2021-22 is ` 8100 lakhs. Out of this ` 7216 lakhs disclosed under Note -43 and
balance ` 884 lakhs spent during the year and accounted against the liability created for savings in energy charges from the Wind Power Plant
during 2020-21. The details of Expenditure spent during the year 2021-22 is given below:
1 On going projects 2541
2. Other than on going projects 5559
Total Expenditure incurred during the year 8100
In the year 2021-22, an amount of ` 825 lakhs surplus, was generated through savings in energy charges from the Wind Power Plant & football
academy. The surplus will be utilised for other CSR projects/ activities during 2022-23 over and above the 2% budget allocation as per the
Companies Act, 2013.

(` in Lakhs)
Particulars 31st March 31st March

2022 2021
(c) Shortfall at the end of the year - -
(d) Total of previous years shortfall - -
(e) Reason for short fall - -
(f) Nature of CSR activities:
Particulars
Drinking Water - 114
Education 1,135 1,516
Environment Sustainability 124 360
Facilities for Senior Citizens 20 -
Healthcare 1,881 580
Livelihood Generation 120 70
Rural Development 388 2,240
Sanitation 339 306
Sports Development 364 182
Skill Development 2,136 1,972
Others 708 519
Total 7,216 7,859
(g) Details of related party transactions(e.g. contribution to a trust controlled - -
by the company in relation to CSR expenditure as per relevant Accounting
Standard)
(h) Movement in CSR Provision:
Opening Balance - -
Additions - -
Deletions - -
Closing Balance - -
55T Details of Crypto Currency or Virtual Currency NIL NIL

(` in Lakhs)
Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2022, is as below.
IndAS 16–Property Plant and equipment -The amendment clarifies that excess of net sale proceeds of items
produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly
attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for
adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated
56
the amendment and there is no impact on its Standalone financial statements.
Ind AS 37–Provisions, Contingent Liabilities and Contingent Assets–The amendment specifies that the ‘cost
of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a
contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or
an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the
depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date
for adoption of this amendment is annual periods beginning on or after April 1, 2022, although early adoption
is permitted. The Company has evaluated the amendment and there is no impact on its Standalone financial
statements.
The financial statements were approved for issue by the Board of Directors at their meeting held on 13th May 2022.
57
These financial statements are presented in Indian rupees (rounded off to lakhs). Previous Year figures have been
rearranged or regrouped wherever necessary.

Place: Bangalore
Date: 13.05.2022

Independent Auditor’s Report
To The Members of Hindustan Aeronautics Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying Consolidated Financial Statements of Hindustan Aeronautics Limited (hereinafter referred
to as “the Holding Company”) and its Subsidiaries (Holding Company and its Subsidiaries together referred to as “the Group”)
and its Joint ventures listed in Annexure A, which comprise the Consolidated Balance Sheet as at March 31, 2022 and the
Consolidated Statement of Profit and Loss, (the Consolidated Statement of Changes in Equity) and the Consolidated cash flows
statement for the year then ended and notes to the Consolidated financial statements, including a summary of Significant
Accounting Policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”.)
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated
financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of the Consolidated state of affairs of the
Group and its Joint Ventures as at March 31, 2022, of Consolidated Profit, ( consolidated statement of changes in equity), and its
consolidated cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the group and its Joint ventures in accordance with the ethical
requirements relevant to our audit of the consolidated financial statements in India in terms Code of Ethics issued by ICAI, and
the provisions of the Companies Act 2013, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
1) Attention is invited to Notes to the Financial Results extracted below:
a) Note:49 (9) (g)
COVID-19 Impact
Second wave of Covid-19 has forced the Group to declare for a phased Lockdown at various divisions on substitution basis
during April and May 2021.The Employees will put in additional hours for the lost hours during lockdown period. The lost
man hour was recovered in June and July 2021.The Group has shown improved performance in the last three Quarters (July
to March 2022). Hence, there is no significant impact during the year ended 31.03.2022.
Based on the information available (internal as well as external) up to the date of approval of this financial result, Group
Instruments, Trade Receivables etc. Efforts are being made to minimize the impact. The Group will continue to closely monitor
the developments, the future economic and business outlook and its impact on Group’s future financial statements with a
view to minimize the Covid impact.
b) Note no. : 49 (19)
Revision of pay scales of executives and workmen, with effect from 01.01.2017 was implemented in accordance with the
guidance issued by DPE vide OM dated 03.08.2017 for Executives and in accordance with the Wage Agreement entered into
between Management and Employees Union representatives in 2019-20 in respect of Workmen. On an interpretation on pay
refixation and pursuant to the directives of the Administrative Ministry, the pay fixation to be revised and the excess amount
paid is to be recovered from the employees.

This has resulted in reduction of salaries and wages for the year ended 31 March 2022 by ` 5256 lakhs (Previous year:
` 14450 lakhs) and a consequential reduction in sales revenue for the year ended 31 March 2022 by ` 812 lakhs (Previous
year: ` 5677 lakhs) .
While so, the Employees Union and Officers Association have filed Writ Petitions with Hon’ble High Court of Karnataka
to stay recovery of excess amount of salary paid by the Company. The Hon’ble High Court has granted interim stay on
recoveries, pending disposal of the writ petitions by the High Court, the excess amount is shown under claims recoverable
Note No.19 for ` 24489 lakhs (Previous year ` 19368 lakhs)
(Previous year: ` 2680 lakhs).The amount withheld from employees who retired after 30th June 2021 is kept under other
liabilities ` 1835 lakhs (Previous year: ` NIL).Based on the final order that may be passed, suitable effect will be carried out in
the accounts.
Our opinion is not modified in respect of these matters.
c) – Notes to Specific to Joint Ventures 49 (5)
(i) In respect of BAeHAL Software Limited
Unbilled Revenues
The company has shown Unbilled Revenues valuing ` 695.05 Lakhs (P.Y.938.25 Lakhs) shown under Revenue from
operations & under Current Assets-Others in Balance Sheet and are expected to be invoiced latest by August 2022 as per
best possible estimate given by management. The company is executing multiple projects spanning over multiple years.
End customers keep making changes in requirements of the deliverables, this leads to delay in delivery of the products.
The Unbilled Revenue of ` 231.33 Lakhs is pending for more than 3 years which pertains to TPM projects amounting
to ` 109.47 Lakhs and RTS projects amounting to ` 121.86 Lakhs. Delay in completion of billable milestones due to
multiple changes in the scope/project requirement by the customers, resulting to redoing the IETM tool, delay in testing
& approvals from end customers has caused the delay. However now the requirements are finalized and the same is
expected to billed during the F.Y. 2022-23
(ii) In respect of HATSOFF Helicopter Training Private Limited
Going Concern
The Company has made a net profit of ` 911.20 Lakhs during the period ended 31 March, 2022 and, as of that date, the
Company’s current liabilities exceeded its current assets. In addition to this, as at the balance sheet date, the Company
has significant accumulated losses which have resulted in erosion of the net worth. The networth of the Company as at
31 March, 2022 is negative by ` 3285.02 Lakhs (as at 31 March, 2021 negative by ` 4196.22 Lakhs). However, these
financial statements have been prepared on a going concern basis, notwithstanding the above factors in view of the
following:
1) Board has affirmed that Company has the ability to meet all the obligations.
2) The Company is able to get the multi-year contracts from Defence forces with increased training hours.
3) The Company along with the shareholders are presently pursuing several options with the Company’s bankers ,viz,.
ICICI Bank.
4) The Company has paid ECB loan interest upto 05 September, 2020. Besides payment, ECB principal of ` 3103 lakhs
(US$ 4,132,244) has been paid against ECB overdue installments during the financial year at various dates.
5) The ECB Loan is classified as Non-Performing Asset by the lending bank in view of non-payment of installments due.
The bankers has not recalled the loan.
Considering the promoters ability to fund the Company’s requirements and procure orders for execution, management
is of the opinion that Company is a going concern.

(iii) In respect of HALBIT Avionics Private Ltd
The Company has the following conditions that may cast doubt on its ability to continue as a going concern viz., Net
liability position (improved to ` 1111 lakhs as at 31 March, 2022 from ` 1164 lakhs as at 31 March, 2021); Net current
liability position (improved to ` 1176 lakhs as at 31 March, 2022 from ` 1179 lakhs as at 31 March, 2021). Despite these
conditions, its current liability to creditor, though recorded, isn’t payable immediately, as they are yet to complete part
performance of their obligation and being a shareholder-joint venture partner themselves, the Company has drawn up
financial plans to liquidate the liability in a phased manner. The Company, based on its estimated future growth as per the
business plans and projected cash flow, is confident of funding its operating and capital expenditure and continue business
operations in the foreseeable future. Accordingly, these financial statements have been prepared on a going concern basis.
(iv) In respect of TATA HAL Technologies Ltd
Pursuant to the Board Resolution dated 08th June 2021, the company has filed the application for voluntary liquidation
to MCA in terms of Section 59 of the Insolvency and Bankruptcy Code, 2016 and the official liquidator is appointed. As
the company is under liquidation, the joint venture is not considered for consolidation.
The impact of non-consolidation, however, is not material.
(v) In respect of Infotech HAL Ltd
The audited financial statements of Infotech HAL Ltd, joint venture of Hindustan Aeronautics Limited are not made
available and hence not considered in consolidated financial statements. The joint venture was hitherto consolidated
under equity method. The impact of non-consolidation, however, is not material.
(vi) In Respect of HAL Edgewood Technologies Private Limited
The Joint Venture Company has not prepared the financial statements from the year ended 31st March 2021, and
accordingly not considered for consolidation.
Our opinion is not modified in respect of the above matters
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Financial
Statements of the current period. These matters were addressed in the context of our audit of the Financial Statements as a whole,
and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.

a) Revenue recognition Our audit approach consisted testing of the design and operating
effectiveness of the internal controls and substantive testing as
(‘Ind AS 115’) follows:
The revenue standard establishes a comprehensive • Evaluated the appropriateness of the disclosures provided
framework for determining whether, how much and under the revenue standard and assessed the completeness
when revenue is recognized. This involves certain and mathematical accuracy of the relevant disclosures.
key judgements relating to identification of distinct
performance obligations, determination of transaction • Evaluated the design of internal controls relating to
price of identified performance obligation, the implementation of the revenue accounting standard.
appropriateness of the basis used to measure revenue
recognized over a period. Additionally, the standard • Selected a sample of continuing and new contracts, and
mandates robust disclosures in respect of revenue tested the operating effectiveness of the internal control,
and periods over which the remaining performance relating to identification of the distinct performance
obligations will be satisfied subsequent to the balance obligations and determination of transaction price. We
sheet date. carried out a combination of procedures involving enquiry
and observation, reperformance and inspection of evidence
in respect of operation of these controls.

• Selected a sample of continuing and new contracts and
performed the following procedures:
• Read, analyzed and identified the distinct performance

obligations in these contracts.
• Compared these performance obligations with that of

identified and recorded by the Company.
• Considered the terms of the contracts to determine the

transaction price including any variable consideration to
verify the transaction price used to compute revenue and
to test the basis of estimation of the variable revenue.
• Examination of the correspondence relating to price revision

and ascertained the reasonableness of the estimates.
• Sample of revenues disaggregated by type and service

offerings was tested with the performance obligations
specified in the underlying contracts.
b) Impairment of Trade Receivables We have verified the
In respect of receivables from Government the Company i) Effectiveness of internal controls in place and procedures
does not make any impairment provision based on past followed in identifying the recoverability of long outstanding
experience. dues.
The amount involved being significant balance and ii) The procedures and follow up actions in ascertaining the
management judgement we consider this as a Key Audit impairment of receivables.
Matter
Our audit procedures include evaluation of provisions made for
impairment in earlier years. We also made test checks of invoice
wise collection details provided made in respect of in the five
preceding financial years and we concluded the management
assumption is reasonable
c) Liquidated damages We have verified the controls, period of delay, the expected
days of delay as on 31.03.2022 and also the calculation for the
The Company’s contract with the customer has liquidated damages recognized and found the system followed
standard clause for Liquidated damages for delayed and calculation to be in order.
delivery. The Company’s product have extended period
of manufacturing, design approvals and inspection
by customer at various stages which result in delay
in certain cases leading to liquidated damages. The
liquidated damages recognized being a significant in the
statement of profit and loss is considered a key audit
matter in our opinion.
d) Work – in - Progress (WIP) - Inventories Our Audit Procedures include review of
Inventories include Work in Progress which have been • Physical Verification instructions
physically verified by the management based on physical
verification instructions. • Physical verification reports
• Roll back procedures
• Examining the basis of valuation on a test check basis
Based on the above audit procedures we conclude that the

valuation of WIP is proper.

e) Revision of pay We have verified the Audit para given by PDCA Bangalore,
and the directives given by the Administrative Ministry dated
Revision of pay scales of executives and workmen, 07.04.2021.
with effect from 01.01.2017 was implemented in
accordance with the guidance issued by DPE vide OM We have verified the Copies of the writ petition filed by the
dated 03.08.2017 for Executives and in accordance employees, the interim orders of the Hon’ble High Court and the
with the Wage Agreement entered into between legal opinion from the company counsel.
Management and Employees Union representative in
2019-20 in respect of Workmen. On an interpretation We verified the internal control and the programme logic for
on pay refixation and pursuant to the directives of the recalculation of the employees cost and also made test check
Administrative Ministry, the pay fixation is to be revised on walk through basis .Based on the above audit procedures we
and the excess amount paid is to be recovered from the are satisfied with accounting treatment followed for employees
employees. benefits expenses, recognition of the amount recoverable, and
the provision relating to retired employees.
The revision has resulted in reduction of salaries and
wages for the year ended 31 March 2022 by ` 5256
lakhs (Previous year: ` 14450 lakhs ) and consequential
reduction in sales revenue for the year ended 31 March
2022 by ` 812 lakhs (Previous year: ` 5677 lakhs) .
While so, the Employees Union and the Officers

Association have filed Writ Petition with Hon’ble High
Court of Karnataka to stay recovery of excess amount
of salary paid by the Company. The Hon’ble High Court
has granted interim stay on recoveries, pending final
disposal of the writ petitions by the High Court, the
excess amount is shown under claims recoverable Note
No.19 ` 24489 lakhs (Previous year ` 19368 lakhs)
In respect of employees who retired prior to 30 June,

2021, provision is made for the amount recoverable
` 2584 lakhs (Previous year: ` 2680 lakhs).The amount
withheld from employees who retired after 30th June
2021 is kept under other liabilities ` 1835 lakhs (Previous
year: ` NIL).
Information Other than the Financial Statements and Auditors Reports Thereon
The Holding Company’s Board of Directors is responsible for the other information’s. The other information comprises the
information included in the Board’s Report, Management Discussion & Analysis Report, Business Responsibility Report, but does
not include the financial statements and our auditor’s report thereon. The Board’s Report, Management Discussion & Analysis
Report, Business Responsibility Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
When we read the reports, if we conclude that there is a material misstatement there in, we are required to communicate the
matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financial
statements in terms of the requirements of the Companies Act ,2013 that give a true and fair view of the consolidated financial

position, consolidated financial performance, (Consolidated Changes in Equity) and Consolidated Cash Flows of the Group,
including its Joint Ventures, in accordance with the accounting principles generally accepted in India including the Accounting
Standards specified under section 133 of the Act.The respective Board of Directors of the Companies included in the Group and of
its Joint Ventures are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error which have been used for the purpose of preparation of
the Consolidated financial statements by the directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and
of its Joint ventures are responsible for assessing the ability of the Group and of its Joint Ventures to continue as a Going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of
Directors either intends to liquidate the group or to cease operations or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its Joint ventures are responsible for overseeing
the financial reporting process of the Group and of its Joint ventures.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
Consolidated Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143 (3) (i) of the Companies Act 2013, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such
controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the ability of Group and its Joint Ventures to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group and its Joint Ventures to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group and its Joint Ventures to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated
financial statements of which we are the independent auditors. For the other entities included in the consolidated financial
statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision
and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results
of our work; and (ii) to evaluate the effect of any identified misstatements in the consolidated financial statements.
We communicate with those charged with governance of the holding company and such other entities included in the
consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in Internal Control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Other Matters
(a) We did not audit the financial statements/financial information of Two subsidiaries, whose financial statements/ financial
information reflect total assets of ` 3375 Lakhs as at 31st March 2022, total revenues of ` 478 lakhs and net cash flows
amounting to ` 1017 Lakhs for the year ended on that date, as considered in the consolidated financial statements. The
consolidated financial statements also include the Group’s share of net loss of ` 23 lakhs for the year ended 31stMarch,
2022, as considered in the consolidated financial statements, in respect of Nine associates, whose financial statements/
financial information have not been audited by us. These financial statements/ financial information have been audited by
other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial
statements , in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and joint ventures
and our report in terms of sub – sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries and
joint ventures, is based solely on the reports of the other auditors.
Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below,
is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other
auditors and the financial statements / financial information certified by the Management.
Our opinion is not modified in respect of these matters
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report, to the extent applicable , that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid Consolidated Financial Statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books and reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, (the Consolidated Statement of Changes
in Equity) and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books
of account maintained for the purpose of preparation of the Consolidated Financial Statements.

d) In our opinion, the aforesaid Consolidated Financial Statements comply with the Accounting Standards prescribed under
Section 133 of the Act read with rule 7 of the Companies ( Accounts ) Rules, 2014.
e) Ministry of Corporate Affairs vide notification no 1/2/2014-CL-V dated 23rd February 2018 has exempted the companies
engaged in defense production to the extent of application of relevant Accounting Standard on Segment Reporting. In
view of the above, no disclosure is made by the Group as required Ind AS 108. Subject to the above, We state that, in
our opinion, the aforesaid Consolidated Financial Statements comply with the Accounting Standards specified under
Section 133 of the Act
f) In terms of Circular No.GSR 463(E) dated 05th June 2015 issued by the Ministry of Corporate Affairs, Government of
India, the Company being Government Company, is exempt from the provisions of Section 164(2) of the Act regarding
disqualification of Directors.
g) With respect to the adequacy of internal financial controls with reference to Consolidated financial statements of the
Group and the operating effectiveness of such controls, refer to our separate report in “Annexure B”
h) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations
given to us:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group, and its joint ventures.(refer Note 49 4 (a) & (b) ,49 (19) and 49 (21) to the consolidated
financial statements )
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, on long-term contracts as on March 31, 2022; The Group and its Joint
Ventures did not have any derivative contracts.
iii. There were no amounts which were required to be transferred to the Investor education and protection fund by the
Holding Company and its subsidiary companies and joint ventures incorporated in India
iv. (a) The management has represented that, to the best of it’s knowledge and belief, no funds have been advanced
or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds)
by the Company to or in any other persons or entities, including foreign entities (“lntermediaries”}, with the
understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, 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;
(b)
The management has represented, that, to the best of it’s knowledge and belief, no funds have been
received by the Company from any persons or entities, including foreign entities (“funding Parties”), with
the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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; and
(c) Based on such audit procedures we have considered reasonable and appropriate in the circumstances, nothing
has come to the notice that has caused us to believe that the representations under sub-clause (i) and (ii)
contain any material mis-statement.
v) a) The Company has not declared any final dividend for the financial year 2020-2021.
b) The interim dividends declared on 11.11.2021 and 10.02.2022 for the financial year 2021-2022 and paid by
the Company during the year is in accordance with Section 123 of the Companies Act, 2013.
c) The Company has not proposed any final dividend up to the date of our report.

2. With respect to the matters specified in paragraph 3(xxi) and 4 of the Companies (Auditor’s Report) Order 2020,to be
included in the Auditors report, and based on the CARO report issued by us for the Company and its subsidiaries and Joint
ventures included in the consolidated financial statements of the Company, to which reporting under CARO is applicable, we
report that there are no qualifications or adverse remarks in these CARO Reports.
N R Suresh
Partner
Place:Bengaluru MNO: 021661
Date: 13.05.2022 UDIN:22021661AIXLYB3372

Annexure A
Sl. No. Subsidiaries

1 Naini Aerospace Limited
2 Indo Russian Helicopters Limited (IRHL)
Joint Ventures
1 BAe-HAL Software Ltd
2 Safran HAL Aircraft Engines Private Ltd
3 Indo Russian Aviation Ltd
4 HALBIT Avionics Pvt. Ltd
5 SAMTEL HAL Display Systems Ltd
6 Hatsoff Helicopter Training Pvt. Ltd.
7 International Aerospace Manufacturing Pvt.Ltd.
8 Multirole Transport Aircraft Ltd
9 Helicopter Engines MRO Pvt. Ltd
10* HAL Edgewood Technologies Private Limited
11* Infotech HAL Limited
12* Tata HAL Technologies Limited
• Not considered in Consolidation as the financial statements were not made available till the date of our report.
Please refer points (iv) to (vi) of Emphasis of matter paragraph in our Report.

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF HINDUSTAN AERONAUTICS LIMITED.
Report on the Internal Financial Controls with reference to Consolidated financial statements under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (“the Act”).
In conjunction with our audit of the Consolidated Financial Statements of the Company as of and for the year ended March
31, 2022, we have audited the Internal Financial Controls with reference to Consolidated financial statements of HINDUSTAN
AERONAUTICS LIMITED (‘the Holding Company’) and its Subsidiary Companies and Joint Ventures, which are companies
incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The Board of Directors of the Company and its Subsidiary Companies and Joint Ventures which are companies incorporated in
India, are responsible for establishing and maintaining Internal Financial Controls based on the Internal Control with reference to
Consolidated financial statements criteria established by the Holding Company considering the essential components of Internal
Control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013 (‘the Act’).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Group Company’s and Joint Ventures Internal Financial Controls with reference
to Consolidated financial statements based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) and the Standards on Auditing, issued by ICAI and prescribed under section 143(10) of the Act, to the
extent applicable to an audit of Internal Financial Controls, both applicable to an audit of Internal Financial Controls and, both
issued by ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate Internal Financial Controls with reference to Consolidated
financial statements was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls system
with reference to Consolidated financial statements and their operating effectiveness. Our audit of Internal Financial Controls with
reference to Consolidated financial statements included obtaining an understanding of Internal Financial Controls with reference
to Consolidated financial statements , assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of Internal Control based on the assessed risk. The procedures selected depend on the Auditors’
judgment, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other Auditors in terms of their
Reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on
the Company’s Internal Financial Controls system with reference to Consolidated financial statements of the Group and its Joint
Ventures.
Meaning of Internal Financial Controls Over Financial Reporting
A Company’s Internal Financial Control with reference to Consolidated financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A Company’s Internal Financial Control with reference to
Consolidated financial statements includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the Company;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with Generally Accepted Accounting Principles and that receipts and expenditures of the Company are being
made only in accordance with authorizations of Management and Directors of the Company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
Company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to Consolidated financial statements
Because of the inherent limitations of Internal Financial Controls with reference to Consolidated financial statements , including
the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of the Internal Financial Controls with reference to Consolidated financial
statements to future periods are subject to the risk that the Internal Financial Control with reference to Consolidated financial
statements may become inadequate because of changes in conditions or that the degree of compliance with the policies or
procedures may deteriorate.
Opinion
In our opinion and to the best of our information and according to the explanations given to us , the Holding Company, its
Subsidiary Companies and its Joint Ventures incorporated in India has, in all material respects, an adequate Internal Financial
Controls System with reference to Consolidated financial statements and such Internal Financial Controls were operating effectively
as at March 31, 2022, based on the Internal Control with reference to Consolidated financial statements criteria established by
the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by ICAI.
Other Matters
Our aforesaid Reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the Internal Financial
Controls with reference to Consolidated financial statements in so far as it relates to the Subsidiaries and Joint Ventures which are
companies incorporated in India, is based on the corresponding Reports of the Auditors of such companies incorporated in India .

FRN No.001931S/S000020
N R Suresh
Partner
Place:Bengaluru MNO: 021661
Date: 13.05.2022 UDIN:22021661AIXLYB3372

Consolidated Balance Sheet as at March 31, 2022
(` in Lakhs)
2022 2021 2020
ASSETS
Non-current assets
(a) Property, Plant and Equipment 1
Gross Block 1A 1062777 1021577 940328
Net Block 592758 622178 611336
(b) Capital work-in-progress 2 94910 66333 73727
(c) Investment Property 3
Gross Block 3A 4 4 4
Net Block 3 3 3
(d) Goodwill 4
(e) Other Intangible assets 5
Gross Block 5A 337538 295629 250557
Net Block 83827 94407 100687
(f) Intangible Assets under Development 6
Gross Block 6A 157859 129640 119282
Net Block 152384 128627 118269
(g) Investments accounted for using the Equity Method 7 16779 16096 15754
(h) Financial Assets
(i) Investments 7A 119491 96036 89370
(ii) Trade Receivables 8 0 0 0
(iv) Loans 9 623 750 956
(v) Other Financial Assets 10 41030 38339 38353
(i) Deferred tax Assets (Net) 11 56557 5235 47011
(j) Other Non-Current Assets 12 181464 70635 62784
Total non-current assets 1339826 1138639 1158250
Current assets
(a) Inventories 13 1434728 1667300 1955863
(ii) Trade receivables 15 464153 566805 1126395
(v) Bank Balances other than Cash and Cash Equivalents 17 1127735 3120 3724
(vi) Loans 18 821 780 1177
(vii) Other Financial Assets 19 102323 100782 117139
(d) Other current Assets 21 280899 139592 129267
Total current assets 4498561 4037762 4151255
Assets held for Sale Clause 14.9 811 0 0
of Note 49
Total Assets 5839198 5176401 5309505

Consolidated Balance Sheet as at March 31, 2022
(` in Lakhs)
2022 2021 2020
Equity
(b) Other Equity 23 1897874 1508951 1291926
Equity attributable to owners of the parent 1931313 1542390 1325365
Total equity 1931688 1542781 1325796
LIABILITIES
small Enterprises
(iii) Other Financial Liabilities 26 52470 49329 54986
(b) Provisions 27 126301 125604 128875
(d) Other Non-Current Liabilities 29 1226244 917130 691278
Total non-current liabilities 1405256 1092294 875360
Current Liabilities
(i) Borrowings 30 0 907 588650
small Enterprises
(iii) Other Financial liabilities 32 185360 195282 249705
(b) Other Current Liabilities 33 1475515 1683709 1298518
(c) Provisions 34 505696 393606 504192
(d) Current tax liabilities (Net) 35 79914 42254 58076
Total current liabilities 2502254 2541326 3108349
Total Equity and Liabilities 5839198 5176401 5309505

Place: Bangalore
Date: 13.05.2022

Consolidated Statement of Profit and Loss
(` in Lakhs)
Sr. Particulars Note For the Year For the Year
No. No. ended ended
REVENUE
I Revenue from Operations 36 2462002 2288232
II Other Income 37 98493 35745
III Total Income (I+II) 2560495 2323977
IV EXPENSES
Cost of Materials Consumed 38 875224 791211
Purchases of Stock-in-Trade 38A 65668 82116
Changes in Inventories of Finished Goods, 39 59230 245814
Stock-in-Trade, Work-in-Progress and Scrap
Employee Benefits Expense 40 460442 430517
Finance Costs 41 5820 25917
Depreciation and Amortization Expense 42 111053 115789
Impairment Loss 42A 17643 6385
Other Expenses 43 121086 120954
Direct Input to WIP / Expenses Capitalised 44 32315 25977
Provisions 45 372954 145026
Total Gross Expenses 2121435 1989706
Less: Expenses relating to Capital and Other Accounts 46 83416 93394
Total expenses (IV) 2038019 1896312
V Profit/(Loss) before Share of Profit/(Loss) of Joint Ventures,
Exceptional items and Tax (III-IV) 522476 427665
VI Share of Profit/(Loss) of Joint Ventures accounted using Equity -23 481
Method
VII Profit/(Loss) before Exceptional items and Tax (V+VI) 522453 428146
VIII Exceptional Items 0 202
IX Profit/(loss) before tax (VII+VIII) 522453 428348
X Tax expense:
(1) Current Tax 190000 64500
(2) Earlier YearTax Refund -119273 -4933
(3) Deferred Tax -56262 44226
XI Profit (Loss) for the period from Continuing Operations (IX-X) 507988 324555
XII Profit/(loss) from Discontinued Operations
XIII Tax expense of Discontinued Operations
XIV Profit/(loss) from Discontinued Operations (after tax) (XII-XIII) 0 0
XV Profit/(loss) for the period (XI+XIV) 507988 324555
XVI Other Comprehensive Income (OCI)
A (i) Items that will not be reclassified to profit or loss 47 19607 -9687
(ii) Share of Other Comprehensive Income of JV's accounted 7 -17
using Equity Method
(iii) Income tax benefit/(expense) on the items that will not
be reclassified to Profit or Loss -4940 2450

Consolidated Statement of Profit and Loss
(` in Lakhs)
Sr. Particulars Note For the Year For the Year
No. No. ended ended
B (i) Items that will be reclassified to profit or loss 48 0 0
(ii) Share of Other Comprehensive Income of JV's
accounted using Equity Method 0 0
(iii) Income tax benefit/(expense) on items that will be
reclassified to Profit or Loss 0 0
Total Other Comprehensive Income (A + B) 14674 -7254
XVII Total Comprehensive Income for the period (XV+XVI)
(Comprising Profit/(Loss) and Other Comprehensive Income
for the period) 522662 317301
Profit/(Loss) for the period
Attributable to:
Owners of the parent 508004 324595
Non Controlling interest -16 -40
Other Comprehensive Income for the period
Attributable to:
Owners of the parent 14674 -7254
Non Controlling interest
Total Comprehensive Income for the period
Attributable to:
Owners of the parent 522678 317341
Non Controlling interest -16 -40
XVIII Earnings per Equity Share (for Continuing Operations): Clause 31
of Note 49
(1) Basic (`) 151.92 97.06
(2) Diluted (`) 151.92 97.06
XIX Earnings per Equity Share (for Discontinued Operations):
(1) Basic (`) 0.00 0.00
(2) Diluted (`) 0.00 0.00
XX Earnings per Equity Share (for Continuing & Discontinued
Operations):
(1) Basic (`) 151.92 97.06
(2) Diluted (`) 151.92 97.06

Place: Chennai
Date: 13.05.2022

st
Consolidated Statement of Changes in Equity for the year ended 31 March 2022
A. Equity Share Capital
(` in Lakhs)
Particulars Balance as at Changes in Equity Share Capital due to Restated Balance as at Changes in Equity Share Capital for Balance as at
1 April, 2021 prior period errors 1 April, 2021 the year ended 31 March, 2022 31 March, 2022
(` in Lakhs)
Particulars Balance as at Changes in Equity Share Capital due to Restated Balance as at Changes in Equity Share Capital for the Balance as at
1 April, 2020 prior period errors 1 April, 2020 year ended 31 March, 2021 31 March, 2021

(` in Lakhs)
Particulars Other Equity Total equity Non- Total
Reserves and Surplus Other Comprehensive Income attributable controlling other
Research and Capital General Retained Remeasure- Exchange Share of Other to equity interest Equity
Development Redemption Reserve earnings ments of differences in Comprehen- holders
Reserve Reserve net defined translating the sinve Income in of the
benefit financial Joint Venture Company
liability/ statements of a
asset foreign operation
Balance as at 1 April, 2021 133727 14761 1360424 0 16 23 1508951 391 1509342
Changes in Other Equity due to changes in 0 0
accounting policy or prior period errors
Restated Balance at 1 April, 2021 133727 14761 1360424 0 0 16 23 1508951 391 1509342
Changes in Other Equity for the year
ended 31 March, 2022
Profit for the year ended 31 March, 2022 508004 508004 -16 507988
Remeasurements of the net defined benefit 14667 14667 14667
liability/asset
Items that will not be reclassified to profit or loss 19607 7 19614 19614
Income tax relating to items that will not be -4940 0 -4940 -4940
reclassified to profit or loss
Transfer to Retained Earnings -14667 -14667 -14667
Total comprehensive income for the year 522671 0 0 7 522678 -16 522662
Current year transfer 31596 31596 31596
Transfer to General Reserve on utlization -3985 -3985 -3985
Surplus Transferred from Statement of Profit 357320 357320 357320
and Loss
Transfer from Research & Development Reserve 3985 3985 3985
Transfer to Research & Development Reserve -31596 -31596 -31596
Interim Dividend -133755 -133755 -133755
Transfer to General Reserves -357320 -357320 -357320
Balance as at 31 March, 2022 161338 14761 1721729 0 0 16 30 1897874 375 1898249
Balance as at 1 April, 2020 108732 14761 1231742 -63879 16 40 1291412 431 1291843
Changes in Other Equity due to changes in 514 514 514
accounting policy or prior period errors
st
Consolidated Statement of Changes in Equity for the year ended 31 March 2022
(` in Lakhs)
Particulars Other Equity Total equity Non- Total
Reserves and Surplus Other Comprehensive Income attributable controlling other
Research and Capital General Retained Remeasure- Exchange Share of Other to equity interest Equity
Development Redemption Reserve earnings ments of differences in Comprehen- holders
Reserve Reserve net defined translating the sinve Income in of the
benefit financial Joint Venture Company
liability/ statements of a
asset foreign operation
Restated Balance at 1 April, 2020 108732 14761 1232256 0 -63879 16 40 1291926 431 1292357
Changes in Other Equity for the year
Profit for the year ended 31 March, 2021 324595 324595 -40 324555
Items that will not be reclassified to profit or -9687 -17 -9704 -9704
loss
Remeasurements of the net defined benefit -7237 -7237 -7237
liability/asset
Income tax relating to items that will not be 2450 2450 2450
reclassified to profit or loss
Transfer to Retained Earnings 7237 7237 7237
Total comprehensive income for the year 317358 0 0 -17 317341 -40 317301
Transfer from Other Comprehensive Income -63879 -63879 -63879
Transfer to Retained Earnings 63879 63879 63879
Current year transfer 29599 29599 29599
Transfer to General Reserve on utlization -4604 -4604 -4604
Surplus Transferred from Statement of Profit 123564 123564 123564
and Loss
Transfer from Research & Development Reserve 4604 4604 4604
Transfer to Research & Development Reserve -29599 -29599 -29599
Final Dividend -100316 -100316 -100316
Transfer to General Reserves -123564 -123564 -123564
Balance as at 31 March, 2021 133727 14761 1360424 0 0 16 23 1508951 391 1509342

299
Place: Bangalore
Date: 13.05.2022
Consolidated Statement of Cash Flows
(` in Lakhs)
No. ended ended
A Cash flow from Operating activities
Profit After Tax 507988 324555
Adjustments to reconcile net profit to net cash provided by operating
activities
Income Tax expense 14465 103793
(Gain)/Loss on sale of Property, Plant & Equipment -157 -12
Finance cost 253 20442
Interest Income -42496 -8923
Share of Profit or Loss of Joint Venture 23 -481
Other Adjustments 19 -14
Net (Gain)/Loss on Fair Value Adjustment 313 64
Depreciation,amortization and impairment expense 128696 122174
Provision for Impairment in Value of Investments 86 25
Provision for Doubtful Debts 105418 1426
Provision for Doubtful Claims 6777 2955
Provision for Replacement and Other charges 78729 21175
Provision for Warranty 51544 32561
Provision for Raw Materials and Components, Stores and Spare parts, Loose 56005 43009
Tools and Equipment, Construction Materials and Inventory - Warranty
Provision for Liquidated Damages 74395 43875
Provision for Onerous Contract 0 -32183
Operating Profit Before Working Capital Changes 982058 674441
Adjustments for:
(Increase)/decrease in Trade Receivables 61137 499623
(Increase)/decrease in Loans, Financial Assets and Other Assets -161416 -10515
(Increase)/decrease in Inventories 176567 245554
Increase/(decrease) in Trade Payables 30201 -183640
Increase/(decrease) in Financial Liabilities, Provisions and Other Liabilities 20049 373784
Cash generated from Operations 1108596 1599247
Income Taxes Paid -105318 -87547
Net Cash (used in)/generated from Operating Activities (A) 1003278 1511700
B Cash flow from Investing activities
Purchase of Property, Plant & Equipment -79929 -65430
Purchase of Intangible Assets -70128 -55430
Proceeds from sale of Property, Plant & Equipment 317 123
Investment in Joint Ventures -1000 0
Purchase of other non current Investments -23455 -6666
Investment in short term deposits -1124615 604
Interest Received 22663 7689
Dividend Received from Joint Ventures 196 111
Share application money refunded by Joint Venture 0 1000
Net Cash (used in)/generated from Investing Activities (B) -1275951 -117999

Consolidated Statement of Cash Flows
(` in Lakhs)
No. ended ended
C Cash flow from Financing Activities
Repayment of Borrowings-Current (Net) -907 -585980
Payment of Lease Liabilities -7 -297
Interest paid -236 -20425
Dividend Paid -133755 -100316
Net Cash (used in)/generated from Financing Activities (C) -134905 -707018
D Effect of Exchange differences on translation of foreign currency cash 0 0
and cash equivalents
Net increase/(decrease) in Cash and Cash Equivalents (A+B+C+D) -407578 686683
Add: Cash and Cash Equivalents at the beginning of the year (Refer Note 16) 714615 27932
Cash and Cash Equivalents at the end of the year (Refer Note 16) 307037 714615
Notes:
1. The above Statement of Cash Flows has been prepared under the “Indirect Method” as set out in Indian Accounting Standard
7 “Statement of Cash Flow”
2. Cash & Cash equivalent include Short Term Deposits with Bank
3. Previous year figures are rearranged or regrouped wherever necessary
4. Cash and Cash Equivalents are available fully for use


Place: Bangalore
Date: 13.05.2022

1. BACKGROUND AND BASIS OF ACCOUNTING:
(a) Hindustan Aeronautics Limited and its subsidiaries is collectively referred to as the “Group” or “Company” and its Joint
Ventures are consolidated in this Financial Statement.
(b) The Financial Statements are prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) as
prescribed under Section 133 of Companies Act, 2013 read with relevant rules of the Companies (Indian Accounting
Standards) Rules. The principles of consolidation are enumerated in Note 49(2) –Consolidated Notes to Financial
Statements.
2. USES OF ESTIMATES:
a) Preparation of financial statements in conformity with the recognition and the measurement principle of Ind AS requires
the management of the Company to make estimates, judgments and assumptions that affects the reported balances
of Assets and Liabilities, disclosure relating to contingent liabilities as on the date of the Financial Statements and the
reported amount of revenues and expense for the reporting period.
b) Estimates and the underlying assumption are reviewed on an ongoing basis. The revision to the accounting estimates, if
material is recognized in the period in which the estimates are revised.
c) Estimates and judgments made in applying accounting policies that have significant effect on the amounts recognized
in the financial statements are as follows:
i. Employee Defined benefit plans
The liabilities and costs for defined benefit plans are determined using actuarial valuations. The actuarial valuation
involves making assumptions. These assumptions include salary escalation rate, discount rates, expected rate of
return on assets and mortality rates.
ii. Provisions and contingencies
Assessments undertaken in recognising provisions and contingencies have been made as per the best judgment of
the management based on the current available information.
iii. Income Taxes
The Company’s tax jurisdiction is India. Significant judgments are involved in estimating budgeted profits for the
purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/
recovered for uncertain tax positions.
3. PROPERTY, PLANT AND EQUIPMENT(PPE):

a) Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,
if any.
b) The cost includes purchase price, import duties and non-refundable purchase taxes after deducting trade discounts
and rebates and any cost directly attributable including borrowing cost on qualifying assets to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by the management.
c) Subsequent expenditure relating to PPE including major inspection costs, spare parts, standby and servicing equipment
are capitalized only when it is probable that future economic benefits associated with these will flow to the Company
and the cost of the item can be measured reliably.
d) In accordance with Ind AS 101-First Time Adoption of Indian Accounting Standards, the Company had chosen to
consider the carrying value for all its PPE as their deemed cost at the Opening Balance Sheet as at April 01, 2015.
e) Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the Companies

f) PPE individually costing ` 50,000 and below are fully depreciated in the year of purchase.
g) Where part of an item of PPE with a cost significant in relation to the total cost of the item and have different useful lives,
they are treated as separate components and depreciated over their estimated useful life.
h) Certain items like Special Tools are amortized over the number of units of production expected to be obtained from the
asset based on technical assessment and management estimates depending on the nature and usage of the respective
assets.
i) CSR Assets are fully depreciated in the year of capitalization.
j) The cost and the related accumulated depreciation are eliminated from the Financial Statements upon sale or de-
recognition or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss
of the relevant period.
k) The estimated useful lives, residual values and depreciation / amortisation method are reviewed at the end of each
reporting period with the effect of changes in estimates accounted for on a prospective basis.
3.1: Capital Advances And Capital Work-in-Progress (CWIP)
a) Advances given towards acquisition of PPE outstanding at each Balance sheet date are disclosed as other Non-current
assets.
b) Cost of Assets not ready for its intended use as on the Balance sheet date is shown as CWIP. Such properties are classified
to the appropriate categories of PPE when completed and ready for its intended use.
c) Depreciation on such assets commence when the assets are ready for their intended use.
4. INVESTMENT PROPERTY
a) A property is considered as investment property only if the same is held for earning rentals and / or for capital appreciation
or both. Properties held by the Company (directly or indirectly) which are used in the production of supply of goods or
services for administrative purposes are not considered as Investment Property.
b) Investment Properties are stated at cost net of accumulated depreciation and accumulated impairment losses, if any. In
accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards, the Company has chosen to consider
the carrying value for all its Investment Property recognized in its Indian GAAP financial statement as their deemed cost
as at the transition date viz, April 01, 2015.
c) Depreciation is calculated on straight line basis over estimated useful life as prescribed in Schedule II of the Companies
5. INTANGIBLE ASSETS
a) Intangible Assets controlled and from which future economic benefits are expected to flow and having useful life are
recognized at cost less any accumulated amortization and accumulated impairment losses, if any.
b) Development Costs having useful life and which will generate probable future economic benefits are recognized as an
intangible asset and amortised over production based on technical estimate and to the extent not amortized are carried
forward.
c) Expenditure on license fees, documentation charges etc, based on the definition criteria of intangible assets in terms of
reliability of measurement of cost and future economic benefits from the assets, are amortised over production based on
technical estimates, and to the extent not amortised, are carried forward.
d) The cost of software internally generated / acquired for internal use which is not an integral part of the related hardware,
is recognized as an intangible asset and is amortised over three years, on straight line method. Amortisation commences
when the asset is available for use.

e) Expenditure on Research is recognized as expenditure in the period in which it is incurred.
f) Wherever it is not possible to assess the useful life of an intangible asset (whether or not significant) the same is not
amortised. Impairment on such intangible assets are reviewed annually and when there is an indication of impairment
,the asset is impaired.
6. LEASE ACCOUNTING
6.1.
The Company recognizes, at inception of a contract a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
6.2. The Company as a lessee
a) At the date of commencement of the lease, the Company recognizes a right-of-use (“ROU”) asset representing
its right to use the underlying asset for the lease term and a lease liability for all lease arrangements in which it is
a lessee except for leases with a term of 12 months or less (short term leases) and leases for which the underlying
assets is of low value. For such short term and assets of low value leases, the Company recognizes the lease
payment as an expense on a straight line basis over the term of the lease.
b) At commencement date the ROU asset is measured at cost. The cost of the ROU asset measured at inception shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date less any lease incentives received, plus any initial direct costs incurred. The ROU
assets are subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any.
c) The ROU assets are depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of ROU asset. The estimated useful lives of ROU assets are determined on the same basis
as those of PPE. Right-of-use assets are tested for impairment whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if any, is recognized in the statement of profit and loss.
d) At the commencement date, the Company measures the lease liability at the present value of the lease payments
that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease or, if
not readily determinable, using the Company’s incremental borrowing rate.
e) Lease liability and ROU asset are separately presented in the Balance Sheet and lease payments are classified as
financing cash flows. Short term lease payments and payments for leases of low value assets are classified as
operating cash flows.
6.3. Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease.
6.3.1 Finance Lease:
a) A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset
to the Lessee is classified as a finance lease. Title may or may not eventually be transferred.
b) At commencement date, an amount equal to the net investment in the lease is presented as receivable.
The interest rate implicit in the lease is used to measure the value of net investment in the lease.
c) The finance income is recognized over the lease term in the statement of profit and loss account so as to
reflect a constant periodic rate of return on the net investment in the lease.
d) The de-recognition and impairment requirement of the underlying asset is tested as per Ind AS 109-
Financial instruments.
e) Any modifications in the lease are accounted as a separate lease when the recognition criteria specified in
paragraph 79 of the standard are met.

6.3.2 Operating Lease:
a) Lease other than finance leases are operating leases.
b) The lease payment from operating leases are recognized as income on either a straight-line basis or
another systematic basic, if required.
c) The expenses including depreciation cost associated with earning of the lease income is recognized as an
expense.
d) Depreciation on underlying assets subject to operating leases are calculated on straight line basis over
estimated useful life as prescribed in Schedule II of the Companies Act, 2013.
e) Any modifications in the lease are accounted as a separate lease if the recognition criteria specified in the
standard is met.
6.4. Transition to Ind AS 116
a) Effective April 1, 2019, the Company has applied Ind AS 116 on Lease Accounting. Ind AS 116 replaces Ind AS
17. The Company has adopted Ind AS 116 using the cumulative effect method. The effect of initially applying
this standard is recognized at the date of initial application (i.e. April 1, 2019) and the comparative information
continues to be reported under Ind AS 17.
b) The Company has chosen the practical expedient provided by the standard to apply Ind AS 116 only to contracts
that were previously identified as leases under Ind AS 17 and therefore has not reassessed whether a contract is or
contains a lease at the date of initial application.
7. NON CURRENT INVESTMENTS

a) In accordance with Ind AS 101, First time adoption of Indian Accounting Standards, the Company has chosen to consider
the carrying amount of investment as their deemed cost as at the Opening Balance Sheet as at 01st April, 2015.
b) Investments are carried individually at cost less accumulated impairment in the value of such Investments.
c) Cost of Investment includes acquisition charges such as brokerage, fees and duties.
d) The Company reviews the book value of the investment on a quarterly basis and provides for diminution in the value of
the investment based on the net worth of the investee company.
e) Impairment in the value of investment is made only if in the opinion of management when there is a permanent fall in
value of investment.
8. IMPAIRMENT OF ASSETS
As at each Balance Sheet date, the carrying amount of assets is assessed as to whether there is any indication of impairment.
If the estimated recoverable amount is found less than its carrying amount, the impairment loss is recognised and assets are
written down to their recoverable amount.
9. FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Company recognizes all Financial Assets other than non-current investments and Financial Liabilities at Fair Value on
inception and subsequent measurements are done at amortised cost.
10. DEFERRED DEBTS

Unpaid installment payments under deferred payment terms for the cost of imported materials and tooling content of
the equipment / products sold are accounted as deferred debts from the customer and are recovered as and when the
installments are paid.

11. TRADE AND OTHER PAYABLES
Liabilities are recognized for the amounts to be paid for the goods / services received whether billed by the supplier or not.
12. INVENTORIES
a) Inventories are valued at lower of Cost and Net Realisable Value.
b) The cost of raw material excluding Goods-in-Transit, components and stores are assigned by using the weighted average
cost formula. Goods-in-Transit are valued at cost-to-date. In the case of Finished Goods, Stock-in-Trade and Work-In-
Progress, cost includes costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their
present location and condition. Cost includes Taxes and duties (other than Taxes and duties for which input credit is
available).
c) Provision for redundancy is assessed on ageing at a suitable percentage / level of the value of closing inventory of raw
material and components, stores and spare parts and construction material. Besides, wherever necessary, adequate
provision is made for the redundancy of such materials in respect of completed / specific projects and other surplus /
redundant material pending transfer to salvage stores.
d) Saleable / Disposable scrap is valued at Net Realisable Value.
e) Stores declared surplus / unserviceable / redundant are charged to revenue in the year of such identification.
f) Consumables issued from stores and lying unused at the end of the year are not reckoned as inventory.
13. REVENUE RECOGNITION

13.1. Manufacturing of Aircraft / Helicopter/Spares/Repair Contracts
a) Revenue on Sale of Goods and Services is recognized at a point in time when the Company satisfies the
performance obligation on transfer of control of the products to the Customer in an amount that reflects the
consideration the Company expects to receive in exchange for those products pursuant to the Contract with
customer. Revenue from service Warranty is recognized on straight line basis over the period of Warranty.
Transfer of Control happens on:
i. Acceptance by the buyer’s Inspector, by way of Signaling Out Certificate (SOC)
or
Acceptance by the buyer’s pilot, by way of Certificate of Conformity (COC), wherever, specifically required
in the contract, in the case of Aircrafts/Helicopters,
ii. Acceptance by the Buyer’s inspection agency/SOC or as agreed to by the Buyer, in the case of Repair &
Overhaul of Aircraft/Helicopter/Engine, Rotables, Site repairs, Cat ’B’ repair servicing etc.,
iii. For other deliverables like Spares, Revenue is recognized based on the Acceptance by the buyer’s inspection
agency or as agreed to by the buyer.
b) In case of Performance Based Logistic Contracts, Revenue is recognized over a period of time, based on
Helicopter Availability Certificate, Jointly signed by Seller and Buyer.
c) Revenue is recognized based on the prices agreed with Customers. Where the prices are yet to be agreed/
determined, the revenue is recognised at the most likely amount based on past experience. Differential revenue,
if any, is recognised on receipt of approval / sanction.
13.2. Development Contracts
a) Revenue is recognized over a period of time on incurrence of expenditure identifiable to work orders:

i. where milestones have been defined, on achievement of milestone under the output method.
ii. where milestones have not been defined, on incurrence of expenditure under the input method.
b) Where the customer’s sanction for revision is pending, the expenditure incurred is retained in work-in-progress/
intangible asset. Subsequent revenue is recognized on receipt of revised financial sanction from the customer.
13.3. Significant Financing Component
a) For the majority of the contracts, advance payments are received, prior to commencement of work and
milestone payments are paid in accordance with the terms of the contract.
b) Payments received from customers in advance are not considered to be a significant financing component as
they are given with the objective to protect the interest of the contracting parties.
13.4. Contract Modification
A contract modification exists when the change in scope is agreed but the corresponding change in price is not
determined. In such circumstances, revenue is recognized, based on the Company’s assessment of the estimated
change in the transaction price arising from the modification.
13.5. Other Income
Interest Income is accrued on a time proportion basis, by reference to the principal outstanding and at the effective
interest rate applicable.
Dividend income from investments is recognised when the right to receive payment has been established.
14. Receivables
a) Receivables represent the Company’s unconditional right to consideration under the contract. The right to consideration
is considered unconditional, if only passage of time is required before payment of that consideration is due.
b) Debts from the Government departments are generally treated as fully recoverable, based on past experience, and hence
in the opinion of Management there is no increase in credit risk of such financial assets.
c) Impairment on account of expected credit loss is being assessed on a case to case basis in respect of dues outstanding
for a significant period of time.
14.1. Contract Assets
Contract Assets represents the Company’s right to receive the consideration in exchange for the Goods or Services
that the Company has transferred to the Customer, when that right is conditioned on something other than
passage of time.
15. EMPLOYEE BENEFITS

a) Gratuity and Provident Fund are Defined Benefit Plans and the liability is provided on the basis of actuarial valuation in
respect of eligible employees and is remitted to the trust progressively.
b) Provision for Earned leave is a Defined Benefit Plan and the liability is provided on the basis of actuarial valuation.
c) Pension Scheme and Post Superannuation Group Health Insurance Scheme for employees are Defined Contribution
Plans and the contribution to the corpus of the same is made by the Company to the respective trust. The Company’s
liability is limited to the extent of contribution made to these trusts.

16. FOREIGN CURRENCY TRANSACTION/TRANSLATION
a) Initial Recognition:
On initial recognition, transaction in foreign currencies, entered into by the Company, are recorded in the functional
currency by applying to the foreign currency amount the spot exchange rate between the functional currency and the
foreign currency at the date of the transaction.
b) Measurement of Foreign currency items at reporting date:
Foreign currency monetary items are translated at closing exchange rates. Non- monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of transaction. Non-
monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date
when the fair value is measured.
c) Recognition of Exchange Difference:
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different
from those at which they are translated on initial recognition during the period or in previous financial statement is
recognized in statement of profit and loss in the period in which they arise.
17. INCOME TAXES

a) Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of Income Tax Act,1961(the “Act”).
b) Deferred Tax is recognized using the Balance Sheet method, providing for temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
Tax Assets in excess of Deferred Tax Liability are recognized to the extent that it is probable that future taxable profits will
be available against which the temporary difference can be utilized. Deferred Tax Assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
18. CLAIMS BY THE COMPANY

Claims on suppliers / underwriters / carriers towards loss / damages, claims for export subsidy, duty drawbacks, and claims on
Customs department for refunds are accounted when claims are preferred.
19. PROVISION AND CONTINGENT LIABILITIES

a) A provision is recognised, when the Company has the present obligation as result of past events and it is probable that
an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made.
b) Where no reliable estimate can be made or when there is a possible obligation or present obligations that may, but
probably will not, require an outflow of resources, disclosure is made as Contingent Liability. Expected reimbursement,
if any, is disclosed under Notes to Accounts.
c) When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is
remote, no provision or disclosure is made.
19.1 PROVISION FORWARRANTY

Provision for warranty is recognized on actuarial valuation for Manufacturing and Repair and Overhaul of Aircraft/Helicopter/
Engine/Rotables and Spares and development activities etc.
19.2 Provision for Liquidated Damages

Provision for Liquidated Damages is recognized when the expected date of delivery of Goods / rendering of Service in respect
of Manufacturing and Repair and Overhaul of Aircraft/Helicopter/Engine/Rotables, Spares and Development activities etc is
beyond the due date as per delivery schedule and at the rates specified in the Contract with the Customer.

19.3 Provision for Onerous Contracts
A provision for onerous contract is recognized when the expected benefits to be derived by the Company from the contract
are lower than the unavoidable cost of meeting its obligations under the contract. Before a provision is established, the
Company recognizes any impairment loss on the assets associated with that contract.
20. ESTIMATES AND ERRORS

The Company revises its accounting policies if the change is required due to a change in Ind AS or if the change will provide
more relevant and reliable information to the users of the financial statements. Changes in accounting policies are applied
retrospectively unless it is impracticable to apply.
A change in an accounting estimate that results in changes in the carrying amounts of recognised assets or liabilities or to
statement of profit and loss is applied prospectively in the period(s) of change.
When it is difficult to distinguish a change in an accounting policy from a change in an accounting estimate, the change is
treated as a change in an accounting estimate.
Discovery of material errors results in revisions retrospectively by restating the comparative amounts of assets, liabilities, and
equity of the earliest prior period in which the error is discovered. The opening balances of the earliest period presented are
also restated.
21. EVENTS AFTER THE REPORTING PERIOD

Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The
financial statements are adjusted for such events before authorisation for issue.
Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-
adjusting events after the reporting date are not accounted.
22. The functional currency of the Company is Indian Rupee.
(C. B. Ananthakrishnan) (R. Madhavan)

Director (Finance) & CFO Chairman & Managing Director
DIN: 06761339 DIN: 08209860
(G. V. Sesha Reddy)

Company Secretary
Place: Bengaluru
Date: 13.05.2022

Notes to the Consolidated Financial Statements for the year ended March 31, 2022
The changes in the carrying value of property, plant and equipment for the year ended 31st March 2022 are as follows:
(` in Lakhs)
as at 1st April /Adjustment as at 31st
2021 March 2022
Own Assets:
Land -
- Leasehold 35 0 0 0 35
- Freehold 1947 0 0 0 1947
Buildings 125407 1662 -444 32 126593
Plant and Equipment 227485 9689 -50 715 236409
Vehicles 8875 387 0 161 9101
Office Equipment 13446 1528 19 76 14917
Others 4525 0 0 0 4525
Assets used for CSR Activities
Water Supply 3869 1046 0 0 4915
Runways 1776 0 0 0 1776
Sub Total 434117 15041 -475 1176 447507
Special Tools 578040 28255 0 0 606295
Total Own Assets: 1012157 43296 -475 1176 1053802
Land 1312 0 -445 0 867
Buildings 8108 0 0 0 8108
Total Right -of -Use Asset: 9420 0 -445 0 8975
Total: 1021577 43296 -920 1176 1062777
The amount of contractual commitments for the accquisition of Property, Plant and Equipment is disclosed under Clause 4 (c)
of Note 49

Note 1B - Accumulated Depreciation - Plant, Property and Equipment
(` in Lakhs)
as at 1st cation/Ad- As at 31st as at 31st as at 31st
April 2021 justment March 2022 March 2022 March 2021
Own Assets:
Land -
- Leasehold 2 1 0 0 3 32 33
- Freehold 0 0 0 0 0 1947 1947
Buildings 22248 4141 -126 32 26231 100362 103159
Plant and Equipment 107001 18451 -28 652 124772 111637 120484
Vehicles 4100 1025 0 101 5024 4077 4775
Office Equipment 10716 1178 76 61 11909 3008 2730
Others
Roads and Drains 3849 489 0 0 4338 1621 2015
Water Supply 1930 388 0 0 2318 2597 1939
Runways 1244 83 0 0 1327 449 532
Subtotal 173642 29394 -78 1016 201942 245565 260475
Special Tools 225617 42059 0 0 267676 338619 352423
Total Own Assets: 399259 71453 -78 1016 469618 584184 612898
Right-of-Use Asset:
Land 93 22 -31 0 84 783 1219
Buildings 47 270 0 0 317 7791 8061
Total Right -of -Use Asset: 140 292 -31 0 401 8574 9280
Total: 399399 71745 -109 1016 470019 592758 622178

0


The changes in the carrying value of property, plant and equipment for year ended 31st March 2021 are as follows:
(` in Lakhs)
Particulars Gross block Additions Reclassification / Disposals Gross Block
as at 1st April Adjustment as at 31st
2020 March 2021
Land
- Leasehold 35 0 0 0 35
- Freehold 1947 0 0 0 1947
Buildings 114634 10773 0 0 125407
Plant and Equipment 216412 11283 0 210 227485
Vehicles 6600 2414 0 139 8875
Office Equipment 12153 1387 -3 91 13446
Others
Water Supply 3557 312 0 0 3869
Runways 1776 0 0 0 1776
Sub Total 407821 26822 0 526 434117
Special Tools 531195 46845 0 0 578040
Total Own Assets: 939016 73667 0 526 1012157
Land 1312 0 0 0 1312
Buildings 0 8108 0 0 8108
Total Right -of -Use Asset: 1312 8108 0 0 9420
Total: 940328 81775 0 526 1021577
The amount of contractual commitments for the accquisition of Property, Plant and Equipment is disclosed under Clause 4 (c)
of Note 49

Note -1B-Accumulated Depreciation- Plant, Property and Equipment
(` in Lakhs)
as at 1st cation /Ad- As at 31st as at 31st as at 31st
April 2020 justment March 2021 March 2021 March 2020
Own Assets:
Land -
- Leasehold 1 1 0 0 2 33 34
- Freehold 0 0 0 0 0 1947 1947
Buildings 18266 3982 0 0 22248 103159 96368
Plant and Equipment 88361 18850 0 210 107001 120484 128051
Vehicles 3372 789 0 61 4100 4775 3228
Office Equipment 9089 1712 -2 83 10716 2730 3064
Others
Roads and Drains 3287 562 0 0 3849 2015 2341
Water Supply 1596 334 0 0 1930 1939 1961
Runways 1161 83 0 0 1244 532 615
Subtotal 144090 29967 0 415 173642 260475 263731
Special Tools 184826 40791 0 0 225617 352423 346369
Total Own Assets: 328916 70758 0 415 399259 612898 610100
Land 76 17 0 0 93 1219 1236
Buildings 0 47 0 0 47 8061 0
Total Right -of -Use Asset: 76 64 0 0 140 9280 1236
Total: 328992 70822 0 415 399399 622178 611336


Note 2 - Capital Work in Progress

(` in Lakhs)
Buildings 52777 38824 38631
Plant and Equipment 19579 17479 17834
Furniture and Fixtures 0 0 23
Office Equipment 150 7 38
Water Supply 64 102 147
Roads and Drains 0 0 0
Plant and Equipment under Inspection and in Transit 1624 1300 648
Special Tools 20716 8621 16406
TOTAL 94910 66333 73727
Refer Clause 25 of Note 49 for further disclosures on Capital work in Progress

The changes in the carrying value of investment property for the year ended 31st March 2022 are as follows:

(` in Lakhs)
Buildings 4 - - - 4
Total 4 - - - 4

(` in Lakhs)
Buildings 1 - - - 1 3 3
Total 1 - - - 1 3 3

The changes in the carrying value of investment property for year ended 31st March 2021 are as follows:

(` in Lakhs)
As at /Adjustment As at
Buildings 4 - - - 4
Total 4 - - - 4

(` in Lakhs)
Buildings 1 - - - 1 3 3
Total 1 - - - 1 3 3


(` in Lakhs)
Licence Fees 136660 6454 0 143114
Others 0 0 0 0
Total 295629 41909 0 337538

(` in Lakhs)
Licence Fees 73266 1474 0 74740
Others 0 0 0 0
Total 161396 39308 0 200704

(` in Lakhs)
Licence Fees 0 12781 0 12781
Others 0 0 0 0
Total 39826 13181 0 53007


(` in Lakhs)
Licence Fees 136444 216 0 136660
Others 0 0 0 0
Total 250557 12865 32207 295629

(` in Lakhs)
Licence Fees 63297 9969 0 73266
Others 0 0 0 0
Total 116429 44967 0 161396

(` in Lakhs)
Licence Fees 0
Computer Software 0
Documentation 0
Others 0
Total 33441 6385 0 39826

The changes in the carrying value of intangible assets under development for the year ended 31st March 2022 are as follows:

(` in Lakhs)
Total 129640 28219 0 157859
The amount of contractual commitments for the accquisition of intangible assets is disclosed under Clause 4 (c) of Note 49.
Refer Clause 26 of Note 49 for further disclosures on Intangible assets under development

(` in Lakhs)
Development Expenditure - - - -
Total - - - -

(` in Lakhs)
Total 1013 4462 0 5475
-

The changes in the carrying value of intangible assets under development for year ended 31st March 2021 are as follows:

(` in Lakhs)
Development Expenditure 119282 42565 -32207 129640
Total 119282 42565 -32207 129640
The amount of contractual commitments for the accquisition of intangible assets is disclosed under Clause 4 (c) of Note 49.
Refer Clause 26 of Note 49 for further disclosures on Intangible assets under development

(` in Lakhs)
Development Expenditure
Total

(` in Lakhs)
Total 1013 1013
Note 7-Investments accounted for using the equity method

(` in Lakhs)
INVESTMENTS AT COST LESS PROVISION (UNQUOTED)
Investment in Joint Venture
Ae-HAL Software Ltd-29,40,000 (29,40,000-P.Y) shares of `10
B 294 294 294
FV each fully paid
+/-Interest in Joint Venture 6 148 241
Net -BAe-HAL Software Ltd 239 442 535

(` in Lakhs)
Safran HAL Aircraft Engines Private Ltd -11,40,000 (11,40,000-P.Y) 1140 1140 1140
Shares of `100 F.V. each fully paid
Net - Safran HAL Aircraft Engines Private Ltd 4113 3808 3632
Indo Russian Aviation Ltd - 9,36,525 (9,36,525-P.Y) shares of ` 10 94 94 94
FV each fully paid
Net - Indo Russian Aviation Ltd. 5641 5525 4840
HALBIT Avionics Pvt Ltd -3,82,500(3,82,500-P.Y) Shares of `100 383 383 383
FV each fully paid
Net - HALBIT Avionics Pvt. Ltd. 0 0 0
HAL Edgewood Technologies Pvt Ltd 3,00,000(3,00,000-P.Y) 300 300 300
Shares of `100 FV each fully paid
Net- HAL Edgewood Technologies Pvt. Ltd. 0 0 0
SAMTEL HAL Display Systems Ltd-1,60,000 (1,60,000-P.Y) Shares 160 160 160
of ` 100 FV each fully paid
Net - SAMTEL HAL Display Systems Ltd 0 0 0
INFOTECH HAL Ltd - 20,00,000 ( 20,00,000-P.Y) Shares of ` 10 FV 200 200 200
each fully paid
Net- INFOTECH HAL Ltd. 0 0 0
HATSOFF Helicopter Training Pvt Ltd -3,84,04,205 (3,84,04,205 3840 3840 3840
P.Y) Shares of ` 10 FV each fully paid
Net- HATSOFF Helicopter Training Pvt. Ltd. 0 0 0
TATA HAL Technologies Ltd -50,70,000 (50,70,000 P.Y.) Shares of 507 507 507
` 10 each fully paid
Net- TATA HAL Technologies Ltd. 0 0 0
International Aerospace Manufacturing Pvt Ltd - 42,50,000 4250 4250 4250
(42,50,000 - P.Y) Shares of ` 100 FV each fully paid
Net- International Aerospace Manufacturing Pvt Ltd 4160 3829 3811
Multirole Transport Aircraft Ltd. - 113,46,564 (113,46,564 P.Y.) 11347 11347 11347
+/-Interest in Joint Venture -2730 -2177 -1733

(` in Lakhs)
Net- Multirole Transport Aircraft Ltd. 1939 2492 2936
Helicopter Engines MRO Pvt Ltd - 15,09,986 ( 5,09,986 P.Y.) Shares 1510 510 510
of ` 100 FV each fully paid
+/-Interest in Joint Venture -411 -123 -148
Net- Helicopter Engines MRO Pvt Ltd 687 0 0
Total In Equity of Joint Ventures 16779 16096 15754
TOTAL 16779 16096 15754
Disclosure
(iii) Aggregate amount of impairment in value of investments 13396 13310 13285
Refer Clause 14.7 & 14.10 of Note 49 for further details on Investment in Joint Ventures
Note 7A - Financial Asset - Investments at Cost

(` in Lakhs)
A. Investments in Structured Entities (UNQUOTED)
a) HAE Co-operative Society of 25 (25P.Y) Shares of ` 100 0 0 0
FV each fully paid*
b) Satnam Apartment Ltd - 41 (41 P.Y) Shares of `100 each 0 0 0
at cost for acquisition of a Flat**
c) Aerospace & Aviation Sector Skill Council(AASSC) - 125 13 13 13
(125 P.Y.) Shares of ` 10000 FV each fully paid
d) Defence Innovation Organisation - 50 ( P.Y 50) Shares of 1 1 1
Total In Equity of Others (A) 14 14 14
B. Other Investments (UNQUOTED)
LIC of India (For Funding Vacation Leave) 119477 96022 89356
Total In Other Investments (B) 119477 96022 89356
TOTAL (A+B) 119491 96036 89370
* Total ` 2500 (P.Y `2500) (absolute figure) are held by Kanpur division which is rounded off.
** Total ` 7220 (P.Y ` 7220) (absolute figure) are held by Nasik division which is rounded off.

Note 8 - Financial Asset - Trade Receivables
(` in Lakhs)
Trade Receivables
Considered Good - UnSecured 0 0 0
0 0 0
Total 0 0 0
TOTAL 0 0 0

(` in Lakhs)
Contract Assets
TOTAL 0 0 0
Note 9- Financial Asset- Loans

(` in Lakhs)
A. Considered Good-Secured
b) Others
Sub-Total (A) 121 153 187
B. Considered Good-Unsecured
b) Others
Sub-Total (B) 502 597 769
C. Loans which have significant increase in credit risk
Sub-Total (C)
Sub-Total (D)
TOTAL (A+B+C+D) 623 750 956

Note 10 - Other Financial Assets
(` in Lakhs)
A. Claims Receivable Unsecured*
Receivable - Credit Impaired 14385 19211 22465
Sub-Total (A) 0 0 0
B. Security Deposit
Others 1237 1104 1179
Sub-Total (B) 3968 3863 3840
C. Balances with Bank
Bank deposit with more than 12 Months maturity** 701 701 701
Sub-Total (C) 701 701 701
D. Others
Deferred Debts 36361 33775 33812
Sub-Total (D) 36361 33775 33812
TOTAL (A +B +C+D) 41030 38339 38353
*Above balances of Claims Receivable include balances with 437 778 778
related parties (Refer Receivables of Clause No.14.1( e) of Note 49)
*Above balances of Provision for Doubtful Claims include balances 437 778 778
with related parties (Refer Receivables of Clause No.14.1(l) of Note
49)
**Fully Earmarked for Committed Liabilities of more than 12 1 1 1
months
Note 11 - Deferred Tax Assets (Net)
(` in Lakhs)
deferred tax assets:
Add / (Less): Current Year's Assets 51322 -41776
TOTAL 56557 5235 47011

Note 12 - Other Non - Current assets
(` in Lakhs)
A. Capital Advances 22200 16328 27148
B. Advance Other than Capital Advances
Advances against Goods and Service 453 994 337
Advances against Special Tools 0 0 248
Other Advances 840 1037 440
23493 18359 28173
C. Others
Balances with Revenue Authorities
Income tax 139094 34441 19436
Others-under dispute 18843 17808 15134
TOTAL (A+B+C) 181464 70635 62784
Note 13 - Inventories
(` in Lakhs)
Inventories (At Lower of Cost and Net Realisable Value)#
(i) Raw Materials and Components 986640 1092596 1024151
834826 966655 938368
(ii) Work-in-Progress 525080 585049 827774
498491 585049 827774
(iii) Finished Goods 0 0 0
(iv) Stock-in-Trade 2994 2244 5249
(v) Stores and Spares 33259 33684 36868
28606 29707 33651
(vi) Loose Tools 10747 9923 10382
9972 8613 8936
(vii) Construction Materials 53 51 71
41 43 70
(viii) Disposable Scrap (at Net Realisable Value) 710 721 804
(ix) Goods under Inspection and in Transit
Raw material and Components 44718 59950 122291
Stores and Spares 2114 798 1048

(` in Lakhs)
Loose Tools 124 106 372
46956 60854 123711
(x) Inventory - Warranty 14525 15419 19381
12132 13414 17300
TOTAL 1434728 1667300 1955863
(#) includes those issued to Sub-Contractors for Job Works 12256 18062 29553
Inter-division transfers in Transit which are not considered for Inter 56 0 0
Divisional Sales, included in above balance
Note 14 - Financial Asset- Investments

(` in Lakhs)
INVESTMENTS AT COST LESS PROVISION (UN-QUOTED)
TOTAL 0 0 0
Disclosure
(ii) Aggregate amount of Unquoted Investments. 0 0 0
Note 15- Financial Asset-Trade Receivables

(` in Lakhs)
Trade Receivables*
Considered Good - Unsecured 464153 566805 1126395
478060 580311 1140071
TOTAL 464153 566805 1126395
*Above balances of trade receivables include balances with related 404 610 914
parties (Refer Receivables of Clause No.14.1(e) of Note 49) Refer
Clause 27.1 of Note 49 for ageing schedule of Trade Receivables

(` in Lakhs)
Contract Assets
TOTAL 780865 844768 786227
Refer Clause 27.2 of Note 49 for ageing schedule of Contract Assets
Note 16 - Financial Asset- Cash & Cash Equivalents

(` in Lakhs)
A. Balances with Bank
In Current Account 116931 64209 27826
In Short Term Deposits 190100 650101 100
Term Deposits with original maturity of less than 3 months 0 300 0
B. Cheques, Drafts on Hand 2 0 0
C. Cash on Hand 0 0 0
Sub Total 307033 714610 27926
D. Other Bank Balances
In Other Short Term Deposits with Financial Institutions 4 5 6
Sub-Total (D) 4 5 6
TOTAL (A+B+C+D) 307037 714615 27932
Note-17 - Financial Asset- Bank Balances other than Cash and Cash Equivalents
(` in Lakhs)
Term Deposits with original maturity for more than 3 months but 1127682 2871 3709
less than 12 months
Earmarked balances with banks for Unpaid Dividend 53 249 15
TOTAL 1127735 3120 3724

Note 18-Financial Asset- Loans
(` in Lakhs)
A. Considered Good -Secured
b) Others
Sub -Total (A) 171 211 282
B. Considered Good -Unsecured
b) Others
Sub -Total (B) 650 569 895
C. Loans which have Significant Increase in credit risk
Sub -Total (C) 0 0 0
Sub -Total (D) 0 0 0
TOTAL (A +B+C+D) 821 780 1177
Note 19- Other Financial Assets

(` in Lakhs)
Claims Receivable
Unsecured Considered Good 70851 90200 107008
Receivable which have Significant Increase in Credit Risk 0 0 0
86646 99296 115758
Sub-Total 70851 90200 107008
Security Deposit
Others 660 641 711
Interest Accrued and Due on Investment with LIC of India 0 0 16
Interest Accrued and not Due 21182 1349 115
Current Maturities of Deferred Debt 9583 8543 8234
Share Application Money Paid 0 0 1000
TOTAL 102323 100782 117139
Above balances of Claims Receivable include balances with related 18002 18848 16112
parties (Refer Receivables of Clause No.14.1( e) of Note 49)
Above balances of Provision for Doubtful Claims include balances 270 334 21
with related parties (Refer Receivables of Clause No.14.1(l) of Note
49)

Note-20 Current Tax Assets (Net)
(` in Lakhs)
Current Tax (Net) 0 0 3531
TOTAL 0 0 3531
Note 21- Other Current Assets

(` in Lakhs)
A. Advance Other than Capital Advances
Advances against Goods and Services 224018 91336 109673
Other Loans and Advances 743 262 529
Advances to Related Parties* 5675 250 70
B. Others
Unamortised discount on commercial paper 0 0 1763
Balances with revenue Authorities
Income tax 12 21 36
Others 0 0 0
Balance with GST Electronic Ledger 47698 44971 14489
Revenue Stamps 0 0 0
Balances in Franking Machine 4 4 3
TOTAL 280899 139592 129267
* Includes advance of ` 5640 lakhs towards HAL employees Gratuity fund
EQUITY
Note 22- Equity Share Capital
(` in Lakhs)
Authorised Capital 60000 60000 60000
60,00,00,000 Equity Shares of ` 10 each
Issued, Subscribed and Fully Paid up 33439 33439 33439
33,43,87,500 (33,43,87,500 PY) Equity Shares of ` 10 each fully
paid-up
Par Value per Share (`) 10 10 10
Reconciliation of the Number of Shares Outstanding at the
beginning and at the end of the reporting period
Opening Equity Shares (Nos.) 334387500 334387500 334387500
Add: Additions during the Year (Nos.)
Less: Shares Bought Back (Nos.)
Closing Equity Shares (Nos.) 334387500 334387500 334387500

(` in Lakhs)
Shares in the Company held by each Shareholder holding more
than 5 percent shares specifying the number of Shares held
President of India and Nominees 251292407 251292407 300855180
% of Shareholding of President of India and Nominees 75.15% 75.15% 89.97%
Life Insurance Corporation of India 28858712 48382104 23407104
% of Shareholding of Life Insurance Corporation of India 8.63% 14.47% 7.00%
Shares held by promoters at the end of the reporting period
Promoters Name:
President of India and Nominees
No. of Shares 251292407 251292407 300855180
% of total Shares 75.15% 75.15% 89.97%
% Change during the year 0.00% -16.47%
Terms/ Rights attached to Equity shares

The Company has one (1) Class of Shares i.e Equity Shares
The Equity Shares rank Pari Passu in all respects including right to Dividend, Issue of New Shares, Voting Rights and in the Assets
of the Company in the event of Liquidation.
Refer Clause 16 of Note 49 for details regarding buy back of shares
Note 23- Other Equity

(` in Lakhs)
Other Reserves
A. Research & Development Reserve
Add: Current Year Transfer 31596 29599
Less: Transfer to General Reserve on utilisation 3985 4604
Closing Balance (A) 161338 133727
B. Capital Redemption Reserve
Closing Balance (B) 14761 14761
C. General Reserve As per last Balance Sheet 1360424 1232256
(+/-) Surplus Transferred from Statement of Profit and Loss 357320 123564
(+/-) Ind AS Adjustment/Restatement 0 0
Add: Transfer from R&D Reserve 3985 4604
Closing Balance (C) 1721729 1360424

(` in Lakhs)
D. Retained earnings - Surplus in the statement of Profit & Loss
Opening Balance 0 0
Add/(Less): Net Profit / (Net Loss) for the Current Year 508004 324595
Add/(Less): Remeasurement of the defined benefit plans 14667 -71116
Sub total (i) 522671 253479
Less: Appropriations / Allocations
Transfer to Research & Development Reserve 31596 29599
Interim Dividend (PY - Final Dividend) 133755 100316
Tax on Dividend 0 0
Sub total (ii) 165351 129915
Transfer To General Reserves (i)-(ii) 357320 123564
Closing Balance (D) 0 0
E. Other Components of Equity
Fair Value through Other Comprehensive Income (FVOCI) ($)
Opening Balance 39 -63823
Add/(Less): Additions made during the year 14674 -7254
Add/(Less): Remeasurement of the defined benefit plans -14667 71116
Closing Balance (E) 46 39
Total attributable to Owners of the Company 1897874 1508951
F. Attributable to Non-controlling interest
Opening balance 391 431
Profit/(Loss) for the year -16 -40
Closing balance (F) 375 391
TOTAL (A+B+C+D+E+F) 1898249 1509342
1. $ Breakup is given separately in Statement of Changes in Equity
Nature and Purpose of each Reserve:
1. Research & Development Reserve:
Research & Development Reserve is created to bring technological superiority to its products in order to cope with the
future technological challenges by transfer of annual contribution of 10% of Operating Profit After Tax. The amount of
utilisation for R&D purposes during the year is transferred to General Reserve.
2. Captial Redemption Reserve:
This was created on redemption/buyback of equity shares.
3. General Reserve:
General Reserve is created out of the profits of the Company and out of Research & Development Reserve on utilization
of Research & Development purposes. This is a free reserve.

Note 24- Borrowings
(` in Lakhs)
A. Secured
a ) Term Loans
(i) From Banks 0 0 0
Sub-Total (A) 0 0 0
B. Unsecured
Sub-Total (B) 0 0 0
TOTAL (A + B) 0 0 0

(` in Lakhs)
TOTAL 241 231 221

(` in Lakhs)
Trade Payables
TOTAL 0 0 0
Note 26- Other financial liabilities

(` in Lakhs)
Deposits 10 17 18
Deferred liabilities 36750 34154 34178
enterprises
Other Liabilities 15689 15140 20771
TOTAL 52470 49329 54986

Note 27- Provisions
(` in Lakhs)
Gratuity 1081 1087 1044
Earned Leave 98010 96609 66368
Others 0 0 0
Sub-Total (A) 99091 97696 67412
B. Others*
Warranty 4700 4032 0
Sub-Total (B) 27210 27908 61463
TOTAL (A + B) 126301 125604 128875
*Refer Clause 13.1 of Note 49 for movement of Provisions
Note 28- Deferred tax liabilities (Net)

(` in Lakhs)
deferred tax liabilities:
Add / Less: Current Year's Provisions 0 0 0
Add/Less: Impact of Depreciation on transition 0 0 0
TOTAL 0 0 0
Note 29- Other Non current Liabilities

(` in Lakhs)
Defence* 608833 618072 179433
Others 0 0 0
Sub-Total (A) 608833 618072 179433
Defence* 610354 286372 496096
Others 7057 12686 15749
Sub-Total (B) 617411 299058 511845
TOTAL (A+B) 1226244 917130 691278
* includes Advance received against LCA Mark IA 878161 44016 0

Note 30- Borrowings
(` in Lakhs)
A. Secured Short Term Borrowings:
(i) From Banks* 0 907 438650
Working Capital Loan-Cash Credit*
Sub-Total (A) 0 907 438650
B. Unsecured Short Term Borrowings:
(i) From Banks - Commercial paper 0 0 150000
Sub-Total (B) 0 0 150000
TOTAL (A + B) 0 907 588650
Refer Clause No. 11 of Note No.49 for further details on Borrowings
* Working Capital Loan is secured by first charge on Current Assets (All kinds of Stocks and Receivables of the company both
present and future)

(` in Lakhs)
TOTAL 8 8 8
(` in Lakhs)
Trade Payables*
A)
total outstanding dues of micro enterprises and small 4575 5209 4866
Enterprises
B)
total outstanding dues of creditors other than micro 251186 220351 404334
TOTAL 255761 225560 409200
* Above balances of Trade Payable include balances with related 11955 8964 5806
parties (Refer Payable of Clause No.14.1(e) of Note 49).
Refer Clause 28 of Note 49 for ageing schedule of Trade Payables.

Note 32- Other Financial Liabilities
(` in Lakhs)
Liability for Outstanding Expenses 46823 58565 47482
Deposits 12458 12314 11617
Royalty 6111 5261 5600
Current Maturities of Deferred Debts/Liabilities 4678 4182 4047
enterprises
Unpaid Dividend Account** 53 249 15
Others Liabilities* 69679 68592 56043
TOTAL 185360 195282 249705
* Above balances of Other Liabilities include balances with related
parties (Refer Payable of Clause No.14.1( e) & (m) of Note 49).
5597 4644 4744
** No amount is due and outstanding to be transferred to Investor
Education and Protection Fund at the year end.
Note 33- Other Current Liabilities

(` in Lakhs)
Defence 430963 506698 353706
Others 4226 4272 3841
Sub-total (A) 435189 510970 357547
Defence 941864 1063923 816368
Others 62928 80442 81847
Sub-total (B) 1004792 1144365 898215
Advances from Customers (A + B) 1439981 1655335 1255762
C. Other Payables
Taxes ( Other than Taxes on Income) 11639 5957 11690
GST Payable 7206 7148 17429
Central Excise and Service -Tran-1 0 0 0
Others 16689 15269 13637
TOTAL (A+B+C) 1475515 1683709 1298518

Note 34- Provisions
(` in Lakhs)
Gratuity 0 3174 24093
Earned Leave 15220 14654 41969
Others 44721 39890 17539
Sub-Total (A) 59941 57718 83601
B. Others*
Warranty 104625 78549 65384
Sub-Total (B) 445755 335888 420591
TOTAL (A + B) 505696 393606 504192
Note 35- Current tax liability (Net)

(` in Lakhs)
Current tax liability (Net) 79914 42254 58076
TOTAL 79914 42254 58076
Note 36 - Revenue from Operations

(` in Lakhs)
A. Sale of Products
(i) Inland Sales
Spares 332969 372687
Development 91530 87212
Total Inland Sales of Products 1195896 1350263
(ii) Export Sales
Spares 4280 18481
Development 118 24
Total Export Sales of Products 13813 21756
Total Sale of Products (A) 1209709 1372019

(` in Lakhs)
B. Sale of Services
(i) Inland Sale of Services
Total Inland Sales of Services 1223455 875849
(ii) Export Sale of Services
Total Export Sales of Services 2983 2224
Total Sales of Services (B) 1226438 878073
Total Sales (A+B) 2436147 2250092
C. Other Operating Revenues
(i) Disposal of Scrap and Surplus / Unserviceable Stores 1228 861
(ii) Provisions no Longer Required* 22108 34723
(iii) Others 2519 2556
Total Operating Revenues (C) 25855 38140
Revenue from Operations (A+B+C) 2462002 2288232
Note 37- Other Income

(` in Lakhs)

Interest Income
Short term Deposits / Loans / Others 34715 2130
Sundry Advances - Employees 58 68
Other Deposits 7723 6725
Sub-total 42496 8923
Dividend Income
Dividend from Non- Current Investments in Joint Ventures 0 0
Other Non-Operating Income
Gain on Foreign Currency Transaction and Translation 3851 368
Gain on Sale of Property, Plant & Equipment (Net)* 157 12
Gain on Fair Value Adjustment 2130 4159
TOTAL 98493 35745

Note 38- Cost of materials consumed
(` in Lakhs)
Consumption Of Raw Material, Components, Stores and Spare Parts
Opening Stock 1141750 1080472
Add: Purchases 782998 879923
Add: Subcontracting, Fabrication and Machining Charges. 25718 26541
Less: Closing stock 1034477 1141750
915989 845186
Less: Transfer to
Special Tools and Equipment 27075 45751
Expense Accounts and Others 7673 6482
40765 53975
TOTAL 875224 791211
Note 38A- Purchase of Stock-in-Trade

(` in Lakhs)
Purchase of Stock-in-Trade 65668 82116
Note 39- Changes in Inventories of Finished Goods, Stock-in-Trade and Work-In-Progress and Scrap
(` in Lakhs)
Changes in Inventories of Finished Goods, Stock-in-Trade and Work-in-
progress
Opening Balance
587293 833024
Closing Balance
528074 587293
Accretion / (Decretion) -A -59219 -245731
Change in Disposables Scrap
Accretion / (Decretion)-B -11 -83
TOTAL (A+B) -59230 -245814

Note 40- Employee benefits expense
(` in Lakhs)
Contribution to Provident Fund and Others 58272 57873
Contribution to Gratuity 8509 9676
Others 19 20
Staff Welfare Expenses( Net) 17978 12615
Rent for Hiring Accommodation for Officers 168 211
TOTAL 460442 430517
Note 41- Finance costs

(` in Lakhs)
Interest on Cash Credit 2 13279
Discount on Commercial paper 0 6895
Interest on Lease Liability 17 17
Interest on Financial Liability carried at Amortised Cost 0 0
Interest on Income Tax 5567 5475
Interest on Micro and Small Enterprises 234 219
Interest - Others 0 32
TOTAL 5820 25917
Note 42- Depreciation and Amortization expense

(` in Lakhs)

A. Depreciation on Plant, Property and Equipment 29686 30031
B. Amortisation
Intangible assets- Development Expenditure 33694 28817
Other Intangible assets
Computer Software 616 748
Documentation 3524 5433
Sub-Total (B) 81367 85758
TOTAL (A+B) 111053 115789

Note 42A-Impairment Loss
(` in Lakhs)
Impairment Loss on Intangible Asset 17643 6385
TOTAL 17643 6385
Refer Clause No.18 of Note 49
Note 43- Other expenses

(` in Lakhs)
Shop Supplies 7830 8992
Power and Fuel 14130 13338
Water Charges 5917 5001
Rent for Office Premises etc. 99 106
Travelling (includes Foreign Travel) 3887 2687
Training (includes Foreign Training) 432 513
Repairs:
Buildings 6255 6278
Plant, Machinery and Equipment 13464 13083
Others 4070 3798
Expenses on Tools and Equipment 2916 3401
Insurance 4021 4044
Rates and Taxes 5756 1322
Postage and Telephones 783 751
Printing and Stationery 636 627
Publicity 700 2106
Advertisement 195 154
Bank Charges 704 772
Loss on Foreign Currency Transaction and Translation 0 0
Legal Expenses 352 423
Auditors' Remuneration:
For Audit Fee 59 49
For Tax Audit Fee 7 6
For Other Services-Interim Audit & Other Certification fees 87 79
Selling Agents Commission 16 21
Donations 0 0
Handling Charges 173 255
Write Off:
Stores 1768 2320
Shortages / Rejections 484 899
Others 374 1935
Freight and Insurance 960 947
Corporate Social Responsibility 7216 7859
Loss on Fair Value Adjustment 2443 4223
Loss on Sale of Property, Plant & Equipment (Net) 0 0
Miscellaneous Operating Expenses (@) 35352 34965
TOTAL 121086 120954
(@) includes Director's Sitting Fees, excluding GST for the current year is ` 7 8 39
Lakh (For the year ended 31st March 2021 is ` 32 Lakh)

Note 44- Direct Input to Work in Progress / Expenses Capitalised
(` in Lakhs)

A) DIRECT INPUT TO WIP
Project related Travel 493 212
Project related Training 0 25
Project related other Expenditure 5023 2665
Travel outstation jobs 1 0
Royalty 1820 1374
Foreign Technician Fee 156 908
Ground Risk Insurance 3234 3180
Quality Audit Expenses 4 3
Design and Development 14106 16496
Sundry Direct Charges - Others 340 363
Sub-Total (A) 25177 25226
B) EXPENSES CAPITALISED TO INTANGIBLE ASSET

Computer software 684 534
Documentation 0 1
Sub-Total (B) 7138 751
TOTAL (A + B) 32315 25977
Note 45- Provisions

(` in Lakhs)

Replacement and Other Charges 78729 21175
Warranty 51544 32561
Redundancy provision - Raw Materials and Components, Stores and Spare 56005 43009
parts, Loose Tools and Equipment, Construction Materials, Inventory - Warranty
and Work-in-Progress
Liquidated Damages 74395 43875
Doubtful Debts 105418 1426
Doubtful Claims 6777 2955
Impairment of Investments 86 25
TOTAL 372954 145026
Refer Clause 13.1 of Note 49 for movement of Provisions

Note 46- Expenses relating to Capital and Other Accounts
(` in Lakhs)

Expenses allocated to:
Other Intangible assets 7138 751
Others 13265 38431
TOTAL 83416 93394
Other Comprehensive Income

Note 47- Items that will not be reclassified to Profit or Loss
(` in Lakhs)

Remeasurements of the defined benefit plans 19607 -9687
Share of Other Comprehensive Income in Associates and Joint Ventures, to the 7 -17
extent not to be classified into profit or loss
TOTAL 19614 -9704
Note 48- Items that will be reclassified to profit or loss

(` in Lakhs)

Share of Other Comprehensive Income in Associates and Joint Ventures, to the 0 0
extent to be classified into profit or loss
TOTAL 0 0

Note 49 - Consolidated Notes to Financial Statements
(` unless otherwise stated is in lakhs)
1. In Compliance with Ind AS 112 - Disclosure of Interest in Other Entities, the required information is as follows:-
a) Information about subsidiaries
The consolidated financial statements of the Group includes subsidiaries listed in the table below:
Name of the Nature of Business Equity Interest (in %) as at
Subsidiary* 31 March 2022
st
31st March 2021
Naini Aerospace Limited Manufacture of Looms for Helicopter and Aircrafts and 100% 100%
support for second line manufacture of Helicopter at
TAD, Kanpur
Indo-Russian Helicopters Production, maintenance, operation, repairs modernize 50.5% 50.5%
Limited and upgrade the Ka-226 T Helicopters. The company will
also do marketing for third countries export and provide
technical support for these Helicopters
* All Subsidiaries have been incorporated in India and the principal place of business is in India.
Proportion of equity interest held by non-controlling interests:

Name of the Subsidiary As at
31 March 2022
st
31st March 2021
Indo-Russian Helicopters Limited 49.5% 49.5%
b) Summarised financial information of Subsidiary

The summarised financial information of the subsidiaries are provided below. This information is based on amounts before
inter-company eliminations.
Summarised Balance Sheet:
` in Lakhs
Particulars Naini Aerospace Limited Indo-Russian Helicopters Limited
As at As at
31st March 2022 31st March 2021 31st March 2022 31st March 2021
Current assets 553 1519 131 156
Current liabilities 1829 1525 70 66
Net Current assets -1276 -6 61 90
Non-current assets 1990 2038 700 701
Non-current liabilities 1540 1556 2
Net Non-current assets 450 482 698 701
Net assets -826 476 759 791
Accumulated Non-Controlling Interests - - 375 391

Summarised Statement of Profit & Loss:

` in Lakhs
For the year ended For the year ended
31 March 2022
st
31 March 2021
st
31 March 2022
st
31st March 2021
Revenue 438 540 40 53
Profit for the year -1282 -1104 -33 -80
Other Comprehensive Income -20 46
Total Comprehensive Income -1302 -1058 -33 -80
Profit/(Loss) allocated to Non- - - -16 -40
Controlling Interests
Dividends paid to Non-Controlling - - - -
Interests
Summarised Cash Flow:

` in Lakhs
For the year ended For the year ended
31 March 2022
st
31 March 2021
st
31 March 2022
st
31st March 2021
Cash flow from operating activities -301 -605 -64 -55
Cash flow from investing activities -20 925 40 53
Cash flow from financing activities
Net increase/(decrease) in cash and cash -321 320 -24 -2
equivalents
2. Principles of Consolidation:
Sl. No. Particulars
1 The Consolidated Financial Statements (CFS) of Hindustan Aeronautics Limited (HAL) ,Joint Ventures and its
Subsidiaries are prepared in accordance with Ind AS 28 (Investments in Associates & Joint Ventures), Ind AS 110
(Consolidated Financial Statements), Ind AS 111 (Joint Arrangements) and are presented to the extent possible in
the same manner as the the Company's Standalone Financial Statement.
2 Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are de-consolidated from the date when control ceases.
3 The Group combines the financial statements of the parents and its subsidiaries line by line adding together
like items of assets, liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised
gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the transferred asset. Accounting policies of Subsidiary have
been changed where necessary to ensure consistency with the policies adopted by the Group.

4 Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter
to recognise the Group's share of the post acquisition profits or losses of the investee in profit and loss, and the
Group's share of other comprehensive income of the investee in other comprehensive income.
Dividends received or receivable from Joint Ventures are recognised as a reduction in the carrying amount of the
investment.
When the Group's share of losses in Joint Ventures equals or exceeds the Group's interest in the entity, including
any other long-term unsecured receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the other entity.
In accordance with Equity method of consolidation of Joint Venture, where investment is fully impaired and
impairment loss is recognised, further share of lossess is not considered in CFS
Similarly, contingent liabilities in respect of those JV's are also not disclosed as there is no further liabilty/lossess
to the parent.
Unrealised gains on transactions between the Group and its Joint Ventures are eliminated to the extent of the
Group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of
an impairment of the asset transferred.
Accounting policies of Joint Ventures have been changed where necessary to ensure consistency with the policies
adopted by the Group. The carrying amount of equity accounted investments are tested for impairment
5 Interests in Joint Ventures are accounted for using the equity method after initially being recognised at cost in the
Consolidated Balance Sheet.
6 As per the Shareholders’ Agreements entered by the Company relating to all the Joint Ventures which clearly
specifies the intent of the Company to subscribe and hold the specified percentage of the equity from the
beginning, no pre-acquisition profits/losses arose on consolidation.
7 In respect of contingent liabilities and commitments proportionate share of the Company's and others entire
amount as shown by Joint Ventures has been considered for disclosure.
8 The figures of previous year have been considered based on audited financial statements of the Subsidiary / Joint
Ventures.
3. In Compliance with Ind AS 112 - Disclosure of Interest in Other Entities, the required information is as follows:-
a) Details of interest in Joint Venture is as under:
Name of the Joint Ventures* Nature of Business Proportion of Ownership

Interest (in %)
as at
International Aerospace Manufacturing of compressed rings, 50% 50%
Manufacturing Private Limited (IAMPL) turbine blades.
BAeHAL Software Limited (BAeHAL) Develop, Improve, Market, Sell, Lease or 49% 49%
Loaning of Computer Softwares
Safran HAL Aircraft Engines Private Produce Engine Parts & Components 50% 50%
Limited (Formerly known as Snecma
HAL Aerospace Private Limited)
Samtel HAL Display Systems Limited Design, Develop & Manufacture of various 40% 40%
(SAMTEL) types of display systems for airborne,
military & Ground Applications.

Name of the Joint Ventures* Nature of Business Proportion of Ownership

Interest (in %)
as at
Infotech HAL Limited (INFOTECH) Engineering Services work in aero engines 50% 50%
field, Technical Publications, Works from
OEM.
HAL Edgewood Technologies Private Hi-tech aerospace & Defence Product 50% 50%
Limited (HAL-EDGEWOOD) Design, Development, manufacturing &
Technology Transfer.
Halbit Avionics Private Limited Design, Develop, Market & Support 50% 50%
(HALBIT) (Operations & Maintenance) Products.
Provide support and maintenance services
Indo-Russian Aviation Limited (IRAL) Overhaul & Repair of Aircraft, Engines 48% 48%
HATSOFF Helicopter Training Private Military & Civil Helicopter Pilot Training 50% 50%
Limited (HATSOFF) Services, Marketing about Training
Services
TATA HAL Technologies Limited (TATA- Provide Engineering & Design Solutions 50% 50%
HAL) Leveraging the strength of parties.
Multirole Transport Aircraft Limited Preliminary & Detail Design of MTA 50% 50%
(MTAL) MTA Prototypes Prod.
Factory Testing of MTA
Flight Aircraft Tests of MTA
Helicopter Engines MRO Private Ltd To provide support, maintenance, repair 50% 50%
and overhaul of Helicopter engines
* All Joint Ventures have been incorporated in India and the principal place of business is in India.
Hindustan Aeronautics Limited has invested in two companies i.e. Aerospace and Aviation Sector Skill Council & Defence
Innovation Organisation. The companies are incorporated under Sec 8 of the Companies Act 2013. As per In AS 110, the
Company does not exercise any control over Aerospace and Aviation Sector Skill Council & Defence Innovation Organisation.
Hence they have not been considered for consolidation in Consilidated Financial Statements

b) Summarised Financial information in respect of each of Group’s Joint Ventures is set out below:
The summarised financial information below represents amount shown in the Joint Venture’s financial statements prepared in accordance with Ind AS
adjusted by the Group for equity accounting purpose.
Summarised Balance Sheet
` in Lakhs
Particulars BAe-HAL Safran HAL Aircraft Engines SAMTEL HAL Display
Software Ltd Private Ltd Systems Ltd
As at As at As at
st st st st st
31 March 31 March 31 March 31 March 31 March 31st March
2022 2021 2022 2021 2022 2021
Current assets
- Cash & Cash equivalents 73 5 355 444 1 18
- Other assets 2205 2113 6424 7263 993 1675
Total current assets 2278 2118 6779 7707 994 1693
Total non-current assets 287 296 5816 2951 76 86
Current liabilities
- Financial liabilities (excluding trade payables) 63 1336 587 380 380
- Other liabilities 1842 1300 1966 1441 1543 2283
Total current liabilities 1842 1363 3302 2028 1923 2663
Non-Current liabilities
- Financial liabilities (excluding trade payables) 940 913
Total non-current liabilities 110 148 1068 1015 69 63
Net assets 613 903 8225 7615 -922 -947

345

` in Lakhs
Particulars HALBIT Avionics Pvt Ltd Indo-Russian Aviation Ltd HATSOFF Helicopter Training
Pvt Ltd
As at As at As at
st st st st st
31 March 31 March 31 March 31 March 31 March 31st March
2022 2021 2022 2021 2022 2021
Current assets
- Cash & Cash equivalents 589 670 7734 8034 1538 2097
- Other assets 3036 2737 12254 9763 2775 2949
Total current assets 3625 3407 19988 17797 4313 5046

Current liabilities
Total current liabilities 4801 4646 4458 2662 16701 17109
Total non-current liabilities 23 22 464 461 6524 8770
Net assets -1111 -1165 15147 14752 -3285 -4196

` in Lakhs
Particulars TATA HAL International Aero- Multirole Transport Helicopter Engines
Technologies Ltd space Manufacturing Aircraft Ltd. MRO Pvt Ltd
Pvt Ltd
As at As at As at As at
st st st st st st st
31 31 31 31 31 31 31 31st
March March March March March March March March
2022 2021 2022 2021 2022 2021 2022 2021
Current assets
- Cash & Cash equivalents 20 47 286 72 2534 2698 1136 118
- Other assets 55 55 8106 10017 8719 8368 125 111
Total current assets 75 102 8392 10089 11253 11066 1261 229
Current liabilities
- Other liabilities 6 15 4136 4300 13 14 34 1
Total current liabilities 6 15 5545 8295 13 14 34 1
- Other liabilities 186 171
Total non-current liabilities 186 171 2 1
Net assets 69 87 10084 9384 17233 18338 2197 247

347
Summarised Statement of Profit & loss

` in Lakhs
Particulars BAe-HAL Software Safran HAL Aircraft SAMTEL HAL HALBIT Avionics Pvt Indo Russian
Ltd Engines Private Ltd Display Systems Ltd Ltd Aviation Ltd
For the year ended For the year ended For the year ended For the year ended For the year ended
31st 31st March 31st 31st March 31st 31st March 31st 31st March 31st 31st March
March 2021 March 2021 March 2021 March 2021 March 2021
2022 2022 2022 2022 2022
Revenue 1516 1404 7674 4250 2819 1197 413 411 7537 6469
Interest Income 7 8 16 24 1 41 42 417 599
Depreciation & amortisation 27 16 254 230 10 12 1 1 8 9
Interest expense 16 17 14 28 18 15

Income tax expense -55 224 124 5 284 380
Other Expenditure 1778 1630 6595 3540 2767 1277 394 415 6877 5569
Profit from continuing -298 -196 603 352 25 -107 54 37 785 1110
operations
Profit from discontinued
operations
Profit for the year -298 -196 603 352 25 -107 54 37 785 1110
Other comprehensive income 8 6 7
Total comprehensive income -290 -190 610 352 25 -107 54 37 785 1110
Dividends Received (HAL share) 187 94
Reconciliation of the summarised financial information to the carrying amount of interest in Joint venture
` in Lakhs
Particulars BAe-HAL Software Safran HAL Aircraft SAMTEL HAL HALBIT Avionics Pvt Indo Russian
Ltd Engines Private Ltd Display Systems Ltd Ltd Aviation Ltd
As at As at As at As at As at
st st st st st st st st st
31 31 31 31 31 31 31 31 31 31st
March March March March March March March March March March
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Opening net assets 903 1093 7615 7263 -947 -840 -1165 -1202 14752 13837
Restatement of financial
statement by JV
Profit for the year -298 -196 603 352 25 -107 54 37 785 1110
Other comprehensive income 8 6 7
Dividends paid -390 -195
Appropriation
Share Capital issued
Closing net assets 613 903 8225 7615 -922 -947 -1111 -1165 15147 14752
Group's share in % 49% 49% 50% 50% 40% 40% 50% 50% 48% 48%
Group's share in INR 300 442 4113 3808 -369 -379 -556 -583 7271 7081
Unrealised Gain/ Loss -1630 -1556
Unrecognised Losses (Net of 529 539 939 966
subsequent profits)
Provision for Diminution 61 160 160 383 383
Goodwill
Carrying amount 239 442 4113 3808 0 0 0 0 5641 5525

349
Summarised Statement of Profit & loss

` in Lakhs
Particulars HATSOFF TATA HAL International Multirole Helicopter Engines
Helicopter Training Technologies Ltd Aerospace Transport Aircraft MRO Pvt Ltd
Pvt Ltd Manufacturing Pvt Ltd.
Ltd
For the year ended For the year ended For the year ended For the year ended For the year ended
31st 31st 31st 31st 31st 31st 31st 31st 31st 31st
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Revenue 4685 4432 36 15078 10809 7 17
Interest Income 97 114 9 7 13 516 535 11 2

Depreciation & amortisation 982 984 1084 1248 1293 1306 5 17
Interest expense 844 982 2 72 147
Income tax expense 266 74 28 11
Other Expenditure 2046 1493 18 92 12944 9280 300 105 56 52
Profit from continuing 910 1087 -18 -49 719 73 -1105 -880 -50 -50
operations
Profit from discontinued operations
Profit for the year 910 1087 -18 -49 719 73 -1105 -880 -50 -50
Other comprehensive income 1 -1 -2 -33 -8
Total comprehensive income 911 1087 -18 -50 717 40 -1105 -888 -50 -50
Dividends Received (HAL share) 9 17
Reconciliation of the summarised financial information to the carrying amount of interest in Joint venture
` in Lakhs
Particulars HATSOFF TATA HAL International Multirole Helicopter Engines
Helicopter Training Technologies Ltd Aerospace Transport Aircraft MRO Pvt Ltd
Pvt Ltd Manufacturing Pvt Ltd.
Ltd
As at As at As at As at As at
st st st st st st st st st
31 31 31 31 31 31 31 31 31 31st
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Opening net assets -4196 -5283 87 137 9384 9378 18338 19226 247 297
Restatement of financial statement
by JV
Adjustment for Ind AS 116
Profit for the year 910 1087 -18 -49 719 73 -1105 -880 -50 -50
Other comprehensive income 1 -1 -2 -33 -8
Dividends paid -17 -34
Appropriation
Share Capital issued 2000
Closing net assets -3285 -4196 69 87 10084 9384 17233 18338 2197 247
Group's share in % 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Group's share in INR -1643 -2098 34 43 5042 4692 8617 9170 1099 124
Unrealised Gain/ Loss -27 -8
Unrecognised Losses (Net of 5483 5938 473 464 263
subsequent profits)
Provision for Diminution 3840 3840 507 507 855 855 6678 6678 412 387
Goodwill
Carrying amount 0 0 0 0 4160 3829 1939 2492 687 0

351
4.
(a) Claims / Demands against the Group contested and are not acknowledged as debts (Gross) ` in Lakhs
Particulars* As at
In respect of the Group
(i) Sales Tax / Entry Tax / GST 1121902 1008938
(ii) Service Tax 138028 127359
(iii) Customs Duty 30184 25376
* In terms of Pricing Policy agreed with Indian Defence Customers, prices approved
are exclusive of taxes and duties i.e. Sales Tax, GST, Service Tax, Customs Duty etc.
In case, the customer do not submit an exemption certificate, taxes would be levied
and the same would be re-imbursed by the customer.
Sub Total (A) 1290114 1161673
In respect of Joint Ventures (Group Share)
(i) Sales Tax / Entry Tax / GST 160 0
(ii) Service Tax 0 0
(iii) Customs Duty 0 0
Sub Total (B) 160 0
Total (A+B) 1290274 1161673
(b) Contingent Liability not acknowledged as debts (Gross)

` in Lakhs
Particulars As at
(i) Income Tax 98788 18700
(iii) Others** 40375 50846
** ` 40375 lakh does not include ` 1686 lakh (P.Y. ` 1686 lakh) of contingent
liability to M/s Halbit Avionics Private Limited.
Hitherto the Company was claiming that the factory land and incidental uses are not
subject to property tax by Bruhath Bangalore Mahanagara Palike(BBMP). The Joint
Commissioner, BBMP, Mahadevpura by his order dated 13.08.2021 did not accept
the contention and directed the Assistant Revenue officer to make an assessment
order after giving opportunity to the Company.
The officer, suo moto raised a demand of ` 20253 lakh for the FY 2008-09 to 2021-
22 without passing an order consisting of property tax ` 8268 Lakh and interest
thereon ` 11985 Lakhs.
The Company has filed an appeal before the City Civil Court, Bangalore to set aside
the demand notice and the appeal is pending.
Pending disposal of the appeal and without prejudice to its grounds under writ
petition, pursuant to legal advice the Company has recognized ` 5043 Lakhs
property tax based on self-assessment basis.
Sub Total (A) 154373 69546
(i) Income Tax 33 21
(iii) Others 0 0
Sub Total (B) 33 21
Total (A+B) 154406 69567

(c ) Commitments
` in Lakhs
Particulars As at
Estimated amount of contracts remaining to be executed and not provided for on 136154 119170
Capital Account
Estimated amount of contracts remaining to be executed and not provided for on 4084 4022
Capital Account
Total 140238 123192
In view of the nature of business, being long term contracts there may be other commitments for purchase of material etc.,
which has been considered as normal business process, hence not been disclosed.
5. Notes Specific to Joint Ventures

(i) In respect of BAeHAL Software Limited
Unbilled Revenues
The company has shown Unbilled Revenues valuing ` 695.05 Lakhs (P.Y.938.25 Lakhs) shown under Revenue from operations
& under Current Assets-Others in Balance Sheet and are expected to be invoiced latest by August 2022 as per best possible
estimate given by management. The company is executing multiple projects spanning over multiple years. End customers
keep making changes in requirements of the deliverables, this leads to delay in delivery of the products.
The Unbilled Revenue of ` 231.33 Lakhs is pending for more than 3 years which pertains to TPM projects amounting to
` 109.47 Lakhs and RTS projects amounting to ` 121.86 Lakhs. Delay in completion of billable milestones due to multiple
changes in the scope/project requirement by the customers, resulting to redoing the IETM tool, delay in testing & approvals
from end customers has caused the delay. However now the requirements are finalized and the same is expected to billed
during the F.Y. 2022-23
(ii) In respect of HATSOFF Helicopter Training Private Limited

Going Concern
The Company has made a net profit of ` 911.20 Lakhs during the period ended 31 March, 2022 and, as of that date, the
Company’s current liabilities exceeded its current assets. In addition to this, as at the balance sheet date, the Company has
significant accumulated losses which have resulted in erosion of the net worth. The networth of the Company as at 31 March,
2022 is negative by ` 3285.02 Lakhs (as at 31 March, 2021 negative by ` 4196.22 Lakhs). However, these financial statements
have been prepared on a going concern basis, notwithstanding the above factors in view of the following:
1) Board has affirmed that Company has the ability to meet all the obligations.
2) The Company is able to get the multi-year contracts from Defence forces with increased training hours.
3) The Company along with the shareholders are presently pursuing several options with the Company’s bankers ,viz,.
ICICI Bank.
4) The Company has paid ECB loan interest upto 05 September, 2020. Besides interest payment, ECB principal of ` 3103
lakhs (US$ 4,132,244) has been paid against ECB overdue installments during the financial year at various dates.
5) The ECB Loan is classified as Non-Performing Asset by the lending bank in view of non-payment of installments due.
The bankers has not recalled the loan.
Considering the promoters ability to fund the Company’s requirements and procure orders for execution, management
is of the opinion that Company is a going concern.

(iii) In respect of HALBIT Avionics Private Ltd
The Company has the following conditions that may cast doubt on its ability to continue as a going concern viz., Net liability
position (improved to ` 1111 lakhs as at 31 March, 2022 from ` 1164 lakhs as at 31 March, 2021); Net current liability
position (improved to ` 1176 lakhs as at 31 March, 2022 from ` 1179 lakhs as at 31 March, 2021). Despite these conditions,
its current liability to creditor, though recorded, isn’t payable immediately, as they are yet to complete part performance of
their obligation and being a shareholder-joint venture partner themselves, the Company has drawn up financial plans to
liquidate the liability in a phased manner. The Company, based on its estimated future growth as per the business plans and
projected cash flow, is confident of funding its operating and capital expenditure and continue business operations in the
foreseeable future. Accordingly, these financial statements have been prepared on a going concern basis.
(iv) In respect of TATA HAL Technologies Ltd
Pursuant to the Board Resolution dated 08th June 2021, the company has filed the application for voluntary liquidation to
MCA in terms of Section 59 of the Insolvency and Bankruptcy Code, 2016 and the official liquidator is appointed. As the
company is under liquidation, the joint venture is not considered for consolidation.

(v) In respect of Infotech HAL Ltd
The audited/reviewed financial statements of Infotech HAL Ltd, joint venture of Hindustan Aeronautics Limited are not made
available and hence not considered in consolidated financial statements. The joint venture was hitherto consolidated under
equity method. The impact of non-consolidation, however, is not material.
(vi) In respect of HAL-Edgewood Technologies Private Limited
The Joint Venture Company has not prepared the financial statements from the year ended 31st March 2021, and accordingly
not considered for consolidation.

6. Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
` in Lakhs
Name of the Entity in the Group Net Assets, i.e. Total Assets Share in Net Profit or Loss Share in Other Share in Total Comprehensive
minus Total Liabilities Comprehensive Income Income
2021-22 2021-22 2021-22 2021-22
As % of Net Asset As % of Profit/-Loss As % of Other Com- As % of Total Com-
consolidated consolidated consolidated prehensive consolidated prehensive
net assets profit or loss other com- Income total com- Income
prehensive prehensive
income income
Parent
Hindustan Aeronautics Limited 99 1920481 100 509325 100 14687 100 524012
Subsidiaries
Naini Aerospace Limited* 0 -5826 0 -1282 0 -20 0 -1302
Indo-Russian Helicopters Ltd* 0 -121 0 -16 0 -16
Non Controlling Interest in Subsidiaries* 0 375 0 -16 0 -16
Joint Ventures (Investment as per
the equity method)
M/s BAe-HAL Software Ltd* 0 239 0 -146 0 4 0 -142
M/s Safran HAL Aircraft Engines Private 0 4113 0 301 0 4 0 305
Ltd*
M/s Indo Russian Aviation Ltd* 0 5641 0 303 0 303
M/s HALBIT Avionics Pvt Ltd
M/s HAL Edgewood Technologies Pvt Ltd
M/s SAMTEL HAL Display Systems Ltd
M/s INFOTECH HAL Ltd*
M/s HATSOFF Helicopter Training Pvt Ltd
M/s TATA HAL Technologies Ltd

M/s International Aerospace 0 4160 0 360 0 -1 0 359
Manufacturing Pvt Ltd*

M/s. Multirole Transport Aircraft Ltd.* 0 1939 0 -553 0 -553
M/s.Helicopter Engines MRO Pvt Ltd* 0 687 0 -288 0 -288
355
Total 100 1931688 100 507988 100 14674 100 522662
* less than 1%
Note: The above figures are after eliminating intra-group transactions and intra-group balances as at 31st March 2022.
6. Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
` in Lakhs
Name of the Entity in the Group Net Assets, i.e. Total Assets Share in Net Profit or Loss Share in Other Share in Total Comprehensive
minus Total Liabilities Comprehensive Income Income
2020-21 2020-21 2020-21 2020-21
As % of Net Asset As % of Profit/-Loss As % of Other Com- As % of Total Com-
consolidated consolidated consolidated prehensive consolidated prehensive
net assets profit or loss other com- Income total com- Income
prehensive prehensive
income income
Parent
Hindustan Aeronautics Limited 99 1530923 100 325258 100 -7283 100 317975

Subsidiaries
Naini Aerospace Limited* 0 -4524 0 -1104 -1 46 0 -1058
Indo-Russian Helicopters Ltd* 0 -105 0 -40 0 -40
Non Controlling Interest in Subsidiaries* 0 391 0 -40 0 -40
Joint Ventures (Investment as per
the equity method)
M/s BAe-HAL Software Ltd* 0 442 0 -96 0 3 0 -93
M/s Safran HAL Aircraft Engines Private 0 3808 0 176 0 176
Ltd*
M/s Indo Russian Aviation Ltd* 0 5525 0 779 0 779
M/s HALBIT Avionics Pvt Ltd
M/s HAL Edgewood Technologies Pvt Ltd
M/s SAMTEL HAL Display Systems Ltd
M/s INFOTECH HAL Ltd*
M/s HATSOFF Helicopter Training Pvt Ltd
M/s TATA HAL Technologies Ltd
M/s International Aerospace 0 3829 0 37 0 -16 0 21

Manufacturing Pvt Ltd*
M/s. Multirole Transport Aircraft Ltd.* 0 2492 0 -440 0 -4 0 -444
M/s.Helicopter Engines MRO Pvt Ltd* 0 25 0 25
Total 100 1542781 100 324555 100 -7254 100 317301
* less than 1%
Note: The above figures are after eliminating intra-group transactions and intra-group balances as at 31st March 2021.
7. Restatement for the year ended 31 March 2021 and as at 1 April 2020
In accordance with Ind AS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’ and Ind AS 1, ‘Presentation
of Financial Statements’, the Company has retrospectively restated its Balance Sheet as at 31 March 2021 and 1 April 2020
(beginning of the preceding period) and Statement of Profit and Loss for the year ended 31 March 2021 for the reasons as
stated in the notes no 7(f). Reconciliation of financial statement line items which are retrospectively restated are as under:
(a) Reconciliation of restated items of Balance Sheet as at 1 April 2020
` in Lakhs
Particulars Note No. As previously Reclassification As at Restatement As restated
reported 01.04.2020 as on 01st April
2020 for prior
periods in
financial year
2021-22
ASSETS
Non-current assets
(f) Intangible Assets under Development 6 118269 118269 118269
(g) Investments accounted for using the 7 15754 15754 15754
equity method
(h) Financial Assets 7A 83326 6044 89370 89370
(i) Investments
(iv) Loans 9 4796 -3840 956 956
(v) Other Financial Assets 10 34513 3840 38353 38353
(i) Deferred tax Assets (Net) 11 47011 47011 47011
(j) Other Non-Current Assets 12 62940 62940 -156 62784
Current assets 0
(a) Inventories 13 1943590 1943590 12273 1955863
(b) Financial Assets 0
(ii) Trade receivables 15 1123473 1123473 2922 1126395
(iii) Contract Assets 15A 784173 784173 2054 786227
(v) Bank Balances other than Cash and 17 3724 3724 3724
Cash Equivalents
(vi) Loans 18 1943 -766 1177 1177
Total 5327738 0 5327738 -18233 5309505

` in Lakhs
Particulars Note No. As previously Reclassification As at Restatement As restated

reported 01.04.2020 as on 01st April
2020 for prior
periods in
financial year
2021-22
Equity
(b) Other Equity 23 1291412 1291412 514 1291926
LIABILITIES
(ii) Trade payables 25 0 0 0
(iii) Other Financial Liabilities 26 55207 -221 54986 54986
(b) Provisions 27 128875 128875 128875
(d) Other Non-Current Liabilities 29 705654 705654 -14376 691278
Current Liabilities
(i) Borrowings 30 588650 588650 588650
enterprises
enterprises
(iii) Other Financial liabilities 32 250539 -8 250531 -826 249705
(c) Provisions 34 504192 504192 504192
Total 5327738 0 5327738 -18233 5309505
Note: Reclassification/disclosure which has no impact on Profit and loss and retained earnings.

(b) Reconciliation of restated items of Balance Sheet as at 31.03.2021

` in Lakhs
Particulars Note No. As previously Reclassification As at Restatement as As restated
reported 31.03.2021 on 31st March
2021 for prior
periods in
financial year
2021-22
ASSETS
Non-current assets
(f) Intangible Assets under Development 6 128627 128627 128627
(g) Investments accounted for using the 7 16096 16096 16096
equity method
(h) Financial Assets
(i) Investments 7A 89455 6581 96036 96036
(iv) Loans 9 4613 -3863 750 750
(v) Other Financial Assets 10 34476 3863 38339 38339
(i) Deferred tax Assets (net) 11 5235 5235 5235
(j) Other Non-Current Assets 12 70686 70686 -51 70635
Current assets 0
(a) Inventories 13 1654477 1654477 12823 1667300
(b) Financial Assets 0
(ii) Trade receivables 15 563786 -7991 555795 11010 566805
(iii) Contract Assets 15A 834616 7991 842607 2161 844768
(v) Bank Balances other than Cash and 17 3120 3120 3120
Cash Equivalents
(vi) Loans 18 1470 -690 780 780
Total 5194590 0 5194590 -18189 5176401

` in Lakhs
Particulars Note No. As previously Reclassification As at Restatement as As restated

reported 31.03.2021 on 31st March
2021 for prior
periods in
financial year
2021-22
Equity
(b) Other Equity 23 1507788 1507788 1163 1508951
LIABILITIES
(ii) Trade payables 25 0 0 0
(iii) Other Financial Liabilities 26 49560 -231 49329 49329
(b) Provisions 27 121572 4032 125604 125604
(d) Other Non-Current Liabilities 29 930769 930769 -13639 917130
Current Liabilities
(i) Borrowings 30 907 907 907
(ii) Trade payables 31 0
enterprises
enterprises
(iii) Other Financial liabilities 32 196748 -8 196740 -1458 195282
(c) Provisions 34 397638 -4032 393606 393606
Total 5194590 0 5194590 -18189 5176401
Note: Reclassification/disclosure which has no impact on Profit and loss and retained earnings.

(c) Reconciliation of restated items of Statement of Profit and Loss for the year ended 31 March 2021
` in Lakhs
Particulars For the year ended
31 March 2021
Profit after tax as per previously audited financial statement 323906
RESTATEMENT ADJUSTEMENTS:
Revenue recognised on the assets created out of funds received from the customers 14739
Cost of sales reccognised pertaining to the revenue on the assets created out of funds received from -14739
the customer
Reversal of revenue recognised, equivalent to depreciation charged on the assets funded by the -2039
customer, as per earlier policy
Reversal of depreciation charged on customer funded asset 2039
Recognition of claims from Insurance Companies for refund of Insurance premium paid 649
Profit after tax as per Restated Accounts 324555
Other Comprehensive Income -7254
Total Comprehensive Income 317301
(d) Earning per Equity share

As a result of the above-mentioned adjustments, basic and diluted earnings per share for the financial year 2020-21
changed as below:
Particulars As previously Adjustments As restated
reported
Earnings per Equity Share
Basic earnings per Equity Share (in Rupees) 96.87 0.19 97.06
Diluted earnings per Equity Share (in Rupees) 96.87 0.19 97.06
` in Lakhs
(e) Particulars As at As at
1 April 2020 31 March 2021
Equity as previously reported 1325282 1541618
Revenue recognised on the assets created out of funds received from the customers 27107 41846
Cost of sales reccognised pertaining to the revenue on the assets created out of -27107 -41846
funds received from the customer
Reversal of revenue recognised, equivalent to depreciation charged on the assets -3384 -5423
funded by the customer, as per earlier policy
Reversal of depreciation charged on customer funded asset 3384 5423
Recognition of claims from Insurance Companies for refund of Insurance premium 514 1163
paid
Equity as per re-stated Accounts 1325796 1542781

(f) Accounting treatment of assets funded by Customer for its use in specific project:
In respect of certain capital items specific to projects have been funded by the customer either upfront or is reimbursed
through product cost spread over the duration of the projects. Hitherto these assets were capitalized, and shown under
Property, Plant and Equipment. Revenue was recognised to the extent of depreciation on such capitalized assets. The value of
assets were adjusted to Advances from Customers, where the Company has no control over the assets and disclosed under
explanatory notes to Financial Statement.
An Expert Advisory Committee opinion was sought from The Institute of Chartered Accountants of India for the accounting
treatment of assets funded by Customer for its use in specific project. Based on the opinion received, the view taken by the
Company that it has control over the assets, recognising revenue towards the consideration received in the form of assets,
over the useful life of the asset, to the extent of depreciation provided on such assets are not correct. As per the opinion
received from Expert Advisory Committee, the revenue in respect of funds received from the customer for the manufacturing
facility should be recognized as or when the control over manufacturing facility is transferred to the customer in line with the
requirements of Ind AS 115.
As at 01st April 2020:
Revenue pertains to previous periods prior to comparative period presented. Revenue and cost to the extent of ` 27107 Lakh
is recognised in the opening reserve as at 01st April 2020.
Revenue and cost recognised to the extent of depreciation, on such assets, pertains to previous periods prior to comparative
period presented, now reversed to the extent of ` 3384 Lakh in the opening reserve as at 01st April 2020.
Consequently, Trade receivables for ` 2922 Lakh, Contract Assets for ` 2054 Lakh and Advances from Customers for ` 18747
Lakh has been restated based on the terms of payment. Further, Capital Work in Progress, Capital Advance & Capital
Creditors pertaining to such assets has been reclassified.
For the year ended 31st March 2021:

Revenue pertains to comparative period. Revenue and cost to the extent of ` 14739 Lakh is recognised in the Comparative
period i.e 2020-21. Revenue and cost recognised to the extent of depreciation on such assets, now reversed by restating the
Revenue and depreciation in the Comparative period i.e 2020-21 for ` 2039 Lakh.
Consequently, cumulative impact on Trade receivables for ` 11010 Lakh, Contract Assets for ` 2161 Lakh and Advances from
Customers for ` 19352 Lakh has been restated based on the terms of payment. Further, cumulative impact on Capital Work
in Progress, Capital Advance & Capital Creditors pertaining to such assets has been reclassified.
Insurance Premium
The provisional insurance premium paid on Aviation Policy was charged off to Profit and Loss Account in the respective years
i.e. 2018-19, 2019-20 and 2020-21. On the basis of submission of actual value of Aircraft delivered during the said period,
the actual premium has been assessed and excess of provisional premium over the actual premium is recognised and restated
accordingly.

8. Financial instruments by category

(a) The carrying value and fair value of Financial instruments by each category as at 31st March, 2022 were as
follows:
` in Lakhs
assets/liabilities assets/ assets/ Carrying Value
at amortised liabilities at liabilities at Value
costs FVTPL FVTOCI
Assets:
(i) Investments 119491 - - 119491 119491
(ii) Loans 1444 - - 1444 1444
(iii) Other financial assets 143353 - - 143353 143353
(iv) Trade receivables 464153 - - 464153 464153
(v) Contract Asset 780865 - - 780865 780865
(vi) Cash and Cash equivalents 307037 - - 307037 307037
(vii) Bank balance other than Cash & 1127735 - - 1127735 1127735
Cash equivalents
Liabilities:
(i) Trade payables 255761 - - 255761 255761
(ii) Other financial liabilities 237830 - - 237830 237830
(iii) Borrowings 0 - - 0 0
(iv) Lease Liabilities 249 249 249
(b) The carrying value and fair value of Financial instruments by each category as at 31st March, 2021 were as
follows:
` in Lakhs
assets/liabilities assets/ assets/ Carrying Value
at amortised liabilities at liabilities at Value
costs FVTPL FVTOCI
Assets:
(i) Investments 96036 - - 96036 96036
(ii) Loans 1530 - - 1530 1530
(iii) Other financial assets 139121 - - 139121 139121
(iv) Trade receivables 566805 - - 566805 566805
(v) Contract Asset 844768 - - 844768 844768
(vi) Cash and Cash equivalents 714615 - - 714615 714615
(vii) Bank balance other than Cash & 3120 - - 3120 3120
Cash equivalents
Liabilities:
(i) Trade payables 225560 - - 225560 225560
(ii) Other financial liabilities 244611 - - 244611 244611
(iii) Borrowings 907 - - 907 907
(iv) Lease Liabilities 239 239 239

(c) Interest income/expenses, gain/loss recognised on Financial assets and liabilities in the Consolidated Statement
of Profit & Loss are as follows:
` in Lakhs
Particulars For the year ended
(i) Financial assets at amortised cost
- Interest income from bank deposits 34715 2130
- Interest income from other financial assets 7781 6793
- Gain/(Loss) on amortisation of financial assets 2130 4159
(ii) Financial liabilities at amortised cost
- (Gain)/Loss on amortisation of financial liabilities 2443 4223
9 Financial Risk Management

The Group is exposed to market risk, credit risk and liquidity risk which may impact the fair value of its financial instruments.
The Group based on its business operation evaluated the following risks:
a) Foreign currency risk:
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in exchange rates. The Group’s exposure to the risk of changes in exchange rates relates primarily to the Group’s imports
for which the payment has to be done in currencies other than the functional currency of the Group. The fluctuation in
exchange rates in respect to the Indian rupee may have very restricted impact on Group as any fluctuations in foreign
exchange are in general reimbursed by the customers of the Group in terms of the contractual obligations which the Group
has with its customers.
b) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counter party to a financial instrument fails to meet its
contractual obligations resulting in a financial loss to the Group. Credit risk arises principally from trade receivables, loans
& advances, advances given to suppliers (for procurement of goods, services and capital goods), cash & cash equivalents
and deposits with banks and financial institutions. The Group for the financial year derived 93% (31 March, 2021-94%)
of its total sales from sales to the Indian Defence Services. The Group expects to continue to derive most of its sales from
the Indian Defence Services under the contracts of the Ministry of Defence (MoD), Government of India (GoI) –the Group’s
principal shareholder and administrative ministry.
Ageing Analysis of the Trade Receivables ` in Lakhs
Ageing 0-30 days 31-60 61-90 91-120 121-180 more than Total
past due days past days past days past days past 181 days
due due due due past due
Net carrying amount as at 31.03.2022 69229 32680 32284 29997 34422 265542 464153
Net carrying amount as at 31.03.2021 156392 52588 29423 52038 46843 229521 566805
c) Provision for expected credit losses:
As the Group’s debtors are predominantly the Government of India (Indian Defence Services, Ministry of External Affairs),
Central Public Sector Undertakings where the counter-parties have sufficient capacity to meet the obligations and where
the risk of default is NIL/negligible. Accordingly, impairment on account of expected credit losses is being assessed on a
case to case basis in respect of dues outstanding for significant period of time as per the accounting policy of the Group.
Further, management believes that the unimpaired amounts that are due is collectable in full, based on historical payment
behaviour and extensive analysis of customer credit risk.

d) Liquidity risk:
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. Typically, the Group ensures that it has sufficient cash
on demand to meet expected operational expenses including the servicing of financial obligations. The Group’s standard
contract terms provide that, the Group receives advance payments from customers pursuant to the applicable contracts,
including the Government of India and the Indian Defence Services at the time of signing of any contract and milestone
payments on achievement of physical milestones. These payments are utilized to meet the Group’s working capital needs
(for the Group required to maintain a high level of working capital because the Group’s activities are characterized by
long product development periods and production cycles). A majority of the Group’s research, design and development
costs are funded by the Indian Defence services. Services and supply of spares are governed by the Fixed Price Quotation
(FPQ) policy for fixation of the prices wherein the prices are fixed for the base year with escalation parameters for a pricing
period of 5-7 years. The process of fixation of prices and approvals takes a minimum period of two years after the expiry of
previous pricing period. In the interim, the approved prices of the previous pricing period are continued and payments are
accordingly realised and on finalisation of the revised prices, the differential prices are paid to the Group. Further, certain
costs not forming part of selling price are reimbursed by customer on incurrence of expenditure. The reimbursement
is based on verification and issuance of audit certificate by the payees. There are delays in the above process due to
unanticipated variations/adjustments in the scope and schedule of the Group’s obligations due to subsequent modifications
by the customers and delays in receipt of approvals from the customer. Further, payments to the Group by the Indian
Defence Services are reliant on the continuing availability of budgetary appropriations by Government of India and any
disruptions to the availability of such appropriations could adversely affect the Group’s cashflows.
e) Market risk:
The Ministry of Defence (MoD) and the Government of India (GoI) have continued efforts to reform Defence related policies
such as the Defence Acquistion Procedure 2020 (“DAP 2020”) to promote private participation, a level playing field and the
domestic Defence manufacturing Industry and eco-system. While the MoD has given the highest priority to Indigenously
Designed, Developed and Manufactured (“IDDM”) products for capital procurement, the Group faces competetion to be
selected as the Indian production agency for such contracts. These policies have raised the level of market competition in
the areas in which the Group operates.
f) Risk Mitigation Process:

As a step of institutionalizing the risk management in the Group, an elaborate framework has been developed and the
Group’s top management has overall responsibility for the establishment and oversight of the Group’s risk management
framework. An important purpose of the framework is to have a structured and comprehensive risk management system
across the Group which ensures that the risks are being properly identified and effectively managed. The Group has a
risk management policy to manage & mitigate these risks. The risk management process includes risk identification, risk
assessment, risk evaluation, risk mitigation and regular review and monitoring of risks.The Group’s risk management policy
aims to reduce volatility in financial statements while maintaining balance between providing predictability in the Group’s
business plan along with reasonable participation in market movement.
g) COVID-19 Impact
Second wave of Covid-19 has forced the Group to declare for a phased lockdown at various Divisions on substitution basis
during April and May 2021. The employees have put in additional hours for the hours lost during lockdown period. The lost
man hours was recovered in June and July 2021. The Group has shown improved performance in the last three Quarters
(July – March 2022). Hence, there is no significant impact during the year ended 31.03.2022.
Anticipated Future Impact :
Based on the information available ( internal as well as external) up to the date of approval of this financial result, Group
Instruments, Trade Receivables etc. Efforts are being made to minimize the impact. The Group will continue to closely
monitor the developments, the future economic and business outlook and its impact on Group’s future financial statements
with a view to minimize the Covid impact.

10 Capital Management:
For the purpose of the Group’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the parent . The primary objective of the Group’s capital management is to maximise
the shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and requirements.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.
The Group monitors capital by using debt equity ratio, which is borrowings divided by Equity.
` in Lakhs
Debt 907
Equity 1931688 1542781
No of times 0.00:1 0.00:1
No changes were made in the objectives, policies or processes for managing capital during the period ended 31st March
2022 and 31st March 2021.
11 Borrowing Cash Credit (Note - 30)

Details of lender A Consortium of 7 banks comprising of State Bank of India (lead bank), Bank of Baroda, Indian
Bank, Canara Bank, Punjab National Bank, Union Bank of India and Indian Overseas Bank.
Limit ` 400000 lakhs as Cash Credit (including ` 240000 Lakh of Commercial Paper)
Purpose Working Capital Requirements
Security Paripassu first charge on stocks and receivables of the Company with other consortium banks
Interest Rate Interest rates ranging between TBLR to MCLR based at monthly rests.
Credit Rating [ICRA]AAA/ICRA A1+ by ICRA & CARE AAA/Stable/ CARE A1+ by CARE
(other than Commercial
Paper)
12 UN-HEDGED FOREIGN CURRENCY EXPOSURE

Foreign Amount in INR Foreign Amount in INR
Currency (in Lakhs) Currency (in Lakhs)
Receivables
GBP 260611 255 16441 16
EURO 285965 238 3997088 3379
USD 7858820 5890 5257645 3823
RBL 299562 3 72566 1
PAYABLES
GBP 39246377 39591 23570247 24148
EURO 56583103 48623 33736674 29494
USD 121772511 93122 106996117 79402
CHF 122439 101 462908 367
JPY 165750000 1043 207628783 1399
CAD 657158 404

13.1 Movement of provisions in the Books of Accounts during the year as required by Ind AS 37 “Provisions, Contingent
Liabilities and Contingent Asset” specified under Section 133 of the Companies Act, 2013, is as follows:
` in Lakhs
Nature of Provision Opening Provision Utilisation Reversal Closing
Balance as made during the during the Balance as at
at 1st April during the year year 31st March
2021 year 2022
(Previous Year-31.03.2021) (65,384) (32,561) (12,897) (2,467) (82,581)
Provision for Replacement and Other Charges 153272 78729 8682 5465 217854
(Previous Year-31.03.2021) (181,747) (21,175) (26,554) (23,096) (153,272)
Provision for Redundancy in Raw Material and
Components, Work in progress, Stores and
Spares, Construction Material and Loose Tools 133241 56005 8 3002 186236
(Previous Year-31.03.2021) (92,528) (43,009) - (2,296) (133,241)
(Previous Year-31.03.2021) (15,972) (1,426) (1) (1,035) (16,362)
Provision for Claims 28307 6777 4904 30180
(Previous Year-31.03.2021) (31,215) (2,955) (33) (5,830) (28,307)
Provision for Liquidated Damages 127943 74395 54573 1979 145786
(Previous Year-31.03.2021) (202,740) (43,875) (118,672) - (127,943)
Provision for Impairment of Investments 13,310 86 - - 13396
(Previous Year-31.03.2021) (13,285) (25) - - (13,310)
Provision for Onerous contract - - - -
(Previous Year-31.03.2021) (32,183) - (32,183) - -
* Figures in brackets relate to previous year.
Nature of Provision As at 31st March 2022 As at 31st March 2021
Long Short Total Long Short Total
Term Term Provision Term Term Provision
Provision Provision Provision Provision
Provision for Replacement and Other Charges 15179 202675 217854 12544 140728 153272
Provision for Redundancy in Raw Material 186236 186236 133241 133241
and Components, Work in progress, Stores
and Spares, Construction Material and
Loose Tools
Provision for Claims 14384 15796 30180 19211 9096 28307
Provision for Liquidated Damages 7331 138455 145786 11332 116611 127943
Provision for Impairment of Investments 13396 13396 13310 13310
13.2 Sensitivity of estimates on provisions:
The assumptions made for provisions relating to current period are consistent with those in the earlier years. The assumptions
and estimates used for recognition of such provisions are qualitative in nature and their likelihood could alter in next financial

year. It is impracticable for the Group to compute the possible effect of assumptions and estimates made in recognizing these
provisions.
Provision for replacement and other charges represents, amounts towards expenditure incurred from the date of Signalling
Out Certificate (SOC) to date of ferry out, loan items taken from the customer which needs to be replaced etc.
Warranty represents Performance Warranty for manufacture, repair and overhaul of Aircraft / Helicopters/ Engines / Rotables,
supply of spares and development activities etc.
Provision for Redundancy in Raw Material and Components,Work in progress, Stores and Spares, Construction Material and
Loose Tools represents provision on redundancy of such materials, completed / specific projects and other surplus / redundant
materials pending transfer to salvage stores etc.
Provision for Liquidated Damages represents amounts provided for the period of delay between the due date of supply of the
Goods / rendering of services as per delivery schedule and the expected Date of delivery of said Goods / rendering of service in
respect of manufacture / repair and overhaul of Aircraft / Helicopters / Engines / Rotables, supply of spares and development
activities etc.
Provision for doubtful debts is being assessed on a case to case basis in respect of dues outstanding for a significant period of
time. Debts from the Government departments are generally treated as fully recoverable and hence the Company does not
recognize credit risk of such financial assets.
Provision for doubtful claims represents provision on expected credit losses.

Impairment in value of investment represents reduction in the share of net worth below investment.
Provision for Onerous contract has been recognised as the cost of meeting obligations is over and above the economic
benefits expected to be received under it.

14.1 DISCLOSURE RELATING TO Ind AS-24 ON RELATED PARTY DISCLOSURES

` in Lakhs
(a) The name of the transacting M/s. Indo M/s. M/s. M/s. M/s. M/s. M/s. M/s. M/s. Tata M/s. Inter- M/s. M/s M/s M/s
related party Russian BAe HAL Safran HAL SAMTEL HAL-Edge- HALBIT Infotech HATSOFF HAL Tech- national Multirole Aerospace Helicopter Defence
Aviation Software Aircraft HAL wood Avionics HAL Helicopter nologies Aerospace Transport & Aviation MRO Innovation
Limited Limited Engines Display Technologies Private Limited Training Ltd. Manufac- Aircraft Sector Skill Engines Organisa-
Private Ltd Systems Private Limited Private turing Pvt. Ltd. Council Pvt. Ltd tion
Limited Limited Ltd. Ltd.
Country of incorporation India India India India India India India India India India India India India India
Proportion of Ownership 48% 49% 50% 40% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
Interest
(b) Description of the Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint Joint
relationship between the Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture Venture
parties
(c) Description of the nature of the Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase
transactions and sale and sale and sale and sale and sale of and sale and sale and sale and sale and sale and sale and sale and sale and sale of
of goods of goods of goods of goods goods and of goods of goods of goods of goods of goods of goods of goods of goods goods
and and and and services and and and and and and and and and
services services services services services services services services services services services services services
(d) Volume of the transactions 6,967 425 - 2,622 - 56 185 - 2 8 - - - -
appropriate proportion on
and other expenses
Previous year 31st March 2021 (5,830) (592) - (1,232) - (91) (172) - (30) - - - (7) -
Volume of the transactions - - - - - - - 50 - 605 - - - -
appropriate proportion on Sale
of Goods and Services
Previous year 31st March 2021 (373) - - - - - - - - (496) - - - -
(e) Amounts or appropriate 11,192 210 - 314 - 296 16 - - 4 - - 100 -
proportions of outstanding items
pertaining to related parties
at the Balance Sheet date on
and other expenses
Previous year 31st March 2021 (8,283) (290) - (32) (2) (394) (7) - - - - - (100) -
Amounts or appropriate 12 440 - - 456 239 - 12 - 606 1 32 23 -
proportions of outstanding items
pertaining to related parties at
the Balance Sheet date on Sale

of Goods and Services and other
expenses
Previous year 31st March 2021 (6) (296) - - (439) (145) - (527) - (753) (2) (65) - (4)
(f) Rent, Water and Electricity Expenses 4 173 - 6 18 55 - 732 - 241 11 - - -

Previous year 31st March 2021 (3) (163) - - (35) (54) - (62) - (225) (20) (70) - -
(g) Advances Outstanding on - - 1 34 - - - - - - - - - -
Purchases of Goods and Services
369
st
Previous year 31 March 2021 - - (1) (197) (52) - - - - - - - - -
Advances Outstanding on Sale - - - - - - - - - - - - 919 -
of land
Previous year 31st March 2021 - - - - - - - - - - - - - -
` in Lakhs
(a) The name of the transacting M/s. Indo M/s. M/s. M/s. M/s. M/s. M/s. M/s. M/s. Tata M/s. Inter- M/s. M/s M/s M/s
related party Russian BAe HAL Safran HAL SAMTEL HAL-Edge- HALBIT Infotech HATSOFF HAL Tech- national Multirole Aerospace Helicopter Defence
Aviation Software Aircraft HAL wood Avionics HAL Helicopter nologies Aerospace Transport & Aviation MRO Innovation
Limited Limited Engines Display Technologies Private Limited Training Ltd. Manufac- Aircraft Sector Skill Engines Organisa-
Private Ltd Systems Private Limited Private turing Pvt. Ltd. Council Pvt. Ltd tion
Limited Limited Ltd. Ltd.
(h) Allowances recognised in respect - - - - 17 94 - (515) - - - - - -
of Doubtful debts during the
year
Previous year 31st March 2021 - - - - (37) (39) - (58) - - - - - -
(i) Dividend on Investments 187 - - - - - - - - 9 - - - -
Previous year 31st March 2021 (94) - - - - - - - - (17) - - - -
(j) Re-imbursement Salaries 82 20 - - - 43 - - - 35 - - 23 -
including KMP Salaries

Previous year 31st March 2021 (67) - - - - (40) - - - (52) - - - -
(k) Re-imbursement of Expenses - - - - - - - - - - - - - 6
Previous year 31st March 2021 - - - - - - - - - - - - - (4)
(l) Provision for doubtful debts - - - - 456 239 - 12 - - - - - -
related to the amount of
outstanding balances
Previous year 31st March 2021 - - - - (439) (145) - (527) - - - - - -
(m) Grant outstanding - - - - - - - - - - - - - 4,500
Previous year 31st March 2021 - - - - - - - - - - - - - (4,500)
(n) Write Off of Advance - - - - 374 - - - - - - - - -
Previous year 31st March 2021 - - - - - - - - - - - - - -
The differences in the amount disclosed by the Group and JV’s are due to reconciliation items.
Figures in brackets relate to Previous Year (as at 31.03.2021)
Transaction with the related parties are made on normal commercial terms and at market rates.
Key Management Personnel of the Company in Joint Ventures are as follows:
Shri R Madhavan, Chairman & Managing Director
Shri Alok Verma - Director (Human Resources)
Shri Arup Chatterjee, Director (Engineering and R&D)
Shri C.B. Anantha Krishnan - Director ( Finance) & CFO

Shri G V Sesha Reddy Company Secretary
The total salaries including perquisites drawn by the above key Management Personnel from Joint Ventures is Nil.
14.2 Key Management Personnel in the Company

` in Lakhs
Particulars For the year ended For the year ended
Salary Company Total Salary Company Total
Contribu- Contribu-
tion to PF tion to PF /
/ Gratuity Gratuity
1 Shri R Madhavan, Chairman & 70 5 75 63 5 68
Managing Director
2 Shri Alok Verma, Director (Human 58 5 63 53 4 57
Resources)
3 Shri C. B. Anantha Krishnan, Director 62 5 67 56 5 61
(Finance) & CFO
4 Shri M.S.Velpari, Director (Operations) 53 4 57 53 4 57
5 Shri Arup Chatterjee, Director 59 5 64 55 5 60
(Engineering and R&D)
6 Shri G.V. Sesha Reddy (Company 41 4 45 35 3 38
Secretary)
Shri R. Madhavan was appointed as Chairman & Managing Director with effect from 1st September 2018.
Shri C.B.Anantha Krishnan was appointed as Director (Finance) and CFO with effect from 1st August 2018.
Shri M.S.Velpari ceased to be Director (Operations) consequent upon superannuation on 28th February 2022.
Shri Arup Chatterjee was appointed as Director (Engineering and R&D) with effect from 1st June 2018.
Shri Alok Verma was appointed as Director (Human Resources) with effect from 1st January 2020.
14.3 PART TIME NON-OFFICIAL DIRECTORS ` in Lakhs

Sitting Fees
1 Rear Admiral K.C. Sekhar AVSM, VSM(Retd), Independent Director 3
2 Dr.S Malla Reddy, Independent Director 2
3 Dr. Divya Gupta, Independent Director 2
Total 7
14.4 The Company makes monthly contributions to provident fund managed by “The Provident Fund of HAL” for eligible
employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund
the benefits. The Company contributed to PF Trust during the year is given below.
` in Lakhs
Name of PF Trust For the year ended For the year ended
1. HAL - Bangalore Complex 12992 13221
2. HAL - Nasik 3762 4179
3. HAL - Koraput 2541 2193
4. HAL - Hyderabad 1682 864
5. HAL - Lucknow 1559 1811
6. HAL - Korwa 841 915
7. HAL - Kanpur 1180 1088
8. HAL - Corporate Office 505 433
Total 25062 24704

14.5 The Company maintains gratuity trust for the purpose of administering the gratuity payment to its employees (HAL
Employees Gratuity scheme). During the year, the Company contributed ` 18525 Lakhs (Previous Year - ` 15580 Lakhs)
and as on 31-03-2022 the amount payable is NIL (Previous year ` 3174 Lakhs), amount receivable is ` 17022 lakhs (Previous
Year ` 17999 lakhs) and Advance paid to Gratuity trust is ` 5640 lakhs(Previous year NIL).
14.6 Apart from transactions reported above, the Group has transactions with other Government related entities, which includes
but not limited to the following:
Name of Government: Government of India

Nature of Transactions: Sale of Products and Services
These transactions are conducted in the ordinary course of the Group’s business
14.7 The Board in its 406th meeting held on 22nd September 2017, accorded in principle approval for voluntary winding up /
closure of the three Joint Ventures i.e. M/s. HAL-Edgewood Technologies Private Limited, M/s. Tata HAL Technologies Ltd
and M/s. Multirole Transport Aircraft Ltd. enabling the Company to take further action in the matter.
Further, the Board authorized the Company to seek approval of Ministry of Defense (MoD), for short closure of the
Contracts associated with the M/s Multirole Transport Aircraft (MTA) project and request MoD, to initiate necessary action
for closure of IGA, as it is a prerequisite for winding up of the MTA - Joint Venture Company. Further, MOD vide its letter
dated 14th October 2021 notified the termination of the agreement between the Govt. of the Republic of India and Govt.
of Russian Federation. In this respect the Russian Federation vide its letter dated 20th April 2022 intimated that the decision
of the Indian side has been taken into consideration.
Further in 435th meeting held on 16th March 2020, the Board has directed the Company to expedite the closure of
M/s. Multirole Transport Aircraft Ltd at the earliest after taking clearance from Russian partners from their Board.
The Board in its 440th meeting held on 9th December 2020, accorded in principle approval for voluntary winding up/
closure of Joint Venture M/s. Infotech HAL Limited (IHL) enabling the Company to take further action in the matter.
TATA HAL Techonologies Limited, Pursuant to the Board Resolution dated 08th June 2021, the company has filed the
application for voluntary liquidation to MCA in terms of Section 59 of the Insolvency and Bankruptcy Code, 2016 and the
official liquidator is appointed.
14.8 Defence Innovation Organisation (“DIO”):
A Section 8 Company has been formed (Under Companies Act 2013) in the name of "Defence Innovation Organisation"
with M/s Bharat Electronics Limited (BEL) with an authorised Capital of ` 100 lakhs (Paid up capital as on 31.03.2021 is
` 1 Lakh ( HAL 50% Share and BEL 50% Share). The registered office of DIO is situated at Centre for Learning and Development,
Bharat Electronics Limited, Jalhalli, Bengaluru – 560013, Karnataka, India. DIO was incorporated to implement the scheme of
defence innovation fund initiative by creation of an ecosystem to foster innovation and technology development in defence.
HAL Board in its 417th meeting held on 30th of July 2018 had accorded approval for release of ` 5000 lakhs to DIO towards
intitial corpus fund in form of Grant in Aid in a staggered manner. Accordingly ` 500 lakhs has been released to DIO in
the month of August 2018 and the balance amount is recognised and disclosed in other finanial liabilities - other liabilities
(note 32).
14.9 The Board in its 434th meeting was informed that Government approval is not required for transfer of lease hold land to M/S
Helicopter Engines-MRO Private Limited (HE-MRO), as it is neither Defence land nor it is a land owned by HAL. Board reconsidered
the decision taken in its 431st meeting and approved transfer of land without Government approval to M/s HE-MRO.
The company has received a sum of ` 919 lakhs from HE-MRO for transfer of lease hold land at Goa to HE MRO for right
of use assets and the transfer of land is pending for registration, accordingly the carrying amount of right of use assets of
` 811 lakhs has been disclosed as asset held for sale and ` 919 lakhs received from HE-MRO disclosed under note 32 Non
current - other liabilities in accordance with Ind AS 105.

14.10 Promoters of HE-MRO have decided to restart the activities of the Company on improvement of the Covid-19
situation. To meet its financial requirement, HE-MRO in its 33rd Board meeting held on 30th July 2021 decided to raise
funds by way of Right issue of 20 lakh equity shares to the existing shareholders at par value of ` 100 per share.
HE-MRO has sent Right issue offer letter to existing shareholders including HAL. This matter was put up to Board of
Directors of HAL in its 449th Meeting held on 21st September 2021, and the Board has accepted the Right issue offer.
Consequent to the same, ` 1000 lakhs has been paid to HE-MRO towards equity participation in Rights issue of HE-MRO
Private Limited on 30.09.2021. The Company has been allotted 10 lakh Equity shares of ` 100 each on 11th November 2021
against the share application money paid.
14.11 Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined
under Companies, Act, 2013) either severally or jointly with any other person that are:
(a) repayable on demand or
(b) without specifying any terms or period of repayment.
` in lakhs
Type of Borrower As at 31st March 2022 As at 31st March 2021

Amount of loan Percentage to the Amount of loan Percentage to the
or advance in the total Loans and or advance in the total Loans and
nature of loan Advances in the nature of loan Advances in the
outstanding nature of loans outstanding nature of loans
Promoters NIL NIL NIL NIL
Directors NIL NIL NIL NIL
KMPs NIL NIL NIL NIL
Related Parties NIL NIL NIL NIL
15. The Ministry of Corporate Affairs vide notification no 1/2/2014-CL-V dated 23rd February 2018 has exempted the Government
companies engaged in defence production to the extent of application of Ind AS 108 on "Operating Segment".
16. Buyback of Shares:
In accordance with the approval of Board of Directors at its 408th meeting held on 28th November, 2017 and approval of
shareholders, the Company has bought back 2,71,12,500 fully paid equity shares of ` 10/- each equivalent to 7.5% of
the paid -up share capital and Free Reserves of the Company, for an aggregate amount of ` 92150 lakhs (excluding tax of
` 20636 lakhs) at ` 339.88 per equity share from the President of India. The consideration amount for back buy of shares
was paid to the Government of India on 19th December, 2017 and the shares so bought back were extinguished on 22nd
December, 2017.
17. The Government of India, on 27th August 2020 – 28th August 2020 made an offer for sale (OFS) upto 15% of the paid up
equity share capital, out of its shareholding of 89.97%, in order to achieve the mandatory threshold of 25% minimum
public shareholding by a listed Company. Consequent to the OFS, the Government of India shareholding stands at 75.15%.
` in Lakhs
18. For the year ended For the year ended
As required by Ind AS 36,the Company has accounted impairment losses 17643 6385
based on the Assement of Impairment assets committee carried out during
the year and based on such assessment ‘impairment loss’ in the Statement
of Profit and Loss has been recognised.

19. Revision of pay scales of executives and workmen, with effect from 01.01.2017 was implemented in accordance with
the guidance issued by DPE vide OM dated 03.08.2017 for Executives and in accordance with the Wage Agreement
entered into between Management and Employees Union representative in 2019-20 in respect of Workmen.
On an interpretation on pay refixation and pursuant to the directives of the Administrative Ministry, the pay fixation to be
revised and the excess amount paid is to be recovered from the employees.
This has resulted in reduction of salaries and wages for the year ended 31 March 2022 by ` 5256 lakhs (Previous year:
` 14450 lakhs) and a consequential reduction in sales revenue for the year ended 31 March 2022 by ` 812 lakhs (Previous
year: ` 5677 lakhs) .
While so, the Employees Union and Officers Association have filed Writ Petition with Hon’ble High Court of Karnataka
to stay recovery of excess amount of salary paid by the Company. The Honorable High Court has granted interim stay on
recoveries, pending disposal of the writ petitions by the High court, the excess amount is shown under claims recoverable
Note No.19 for ` 24489 lakhs (Previous year ` 19368 lakhs)
(Previous year: ` 2680 lakhs).
The amount withheld from employees who retired after 30th June 2021 is kept under other liabilities ` 1835 lakhs (Previous
year: ` NIL).
Based on the final order that may be passed, suitable effect will be carried out in the accounts.
20. The Board in its 436th meeting held on 25th June 2020 accorded approval to re-introduce the HAL Employees Voluntary
Retirement Scheme-2020 subject to approval of the Administrative Ministry in light of the present economic circumstances
and changing business scenario and to operate economically to reduce surplus manpower and high labour cost to withstand
the competition from private companies. Administrative Ministry approval for the scheme is awaited.
21. Pursuant to the Orders passed for the Assessment years 2007-08, 2010-11 to 2015-16, giving effect to the orders of
the Appellate authority, CY ` 119273 lakhs (PY ` 4933 lakhs for the Assessment years 2005-06 and 2006-07) provision
no longer required is credited under Tax expense and consequent interest income of CY ` 26273 lakhs (PY ` 4791 lakhs)
is included in other income. Pending passing of Revision order by the Assessing officer, giving effect to the Income Tax
Appellate Tribunal Orders for AY 2011-12 to AY 2014-15 estimated refund of ` 107329 lakhs and the interest thereon
` 41175 lakhs is not recognised and will be given effect in the year in which the revision order is passed by the Assessing
Officer.
` in Lakhs
22. Value of Imports calculated on CIF basis: For the year ended For the year ended
(i) Raw Materials 322954 382959
(ii) Components and Spares 315604 306769
(iii) Capital Goods 3691 6865
(iv) Special Tools 14752 31157
Total 657001 727750
23. Raw Materials, Spare Parts and Components consumed : For the year ended For the year ended
(i) Imported (including Customs Duty) 685951 627875
(% to total) 74.86 74.23
(ii) Indigenous 230339 218015
(% to total) 25.14 25.77
Total (Gross) 916290 845890
(Total %) 100 100

24.1 The aggregate amount of Research and Development Expenditure recognised as expenses during the period is as
below:
` in Lakhs
Expenditure on R&D included in : For the year ended For the year ended
Raw Material Consumption 42898 36287
Direct Expenses 18585 18586
Other Expenses 13821 12971
Depreciation & Amortisation 35618 31368
Impairment 4862 6329
Provisions 16331 354
Total R & D Expenditure 196691 168740
24.2 The Property, Plant and Equipment does not include assets funded As at As at
by the customer for use of their jobs but held by the Company on 31st March 2022 31st March 2021
their behalf
Deletions
24.3 Sales includes ` 127600 lakhs of differential sale on finalization of fixed price quotation for the years from the F.Y. 2016-17,
approved by the Ministry of Defence.
24.4 While the Group is pursuing actively with Ministry of Defence for the approval of the price variation to change order in
LCA-IOC contract which is pending approval, out of prudence, provision for ` 99025 lakhs is recognized in the financial
statements.
24.5 The Company’s IJT Division is primarily engaged in production of Intermediate Jet Trainer (IJT) Aircraft. Contract for supply
of 12 Limited Series Production of IJT Aircraft with IAF is pending for fulfillment of certain Parameters as required by the
Customer. Completion of all parameters required by the Customers will take some more time after which delivery of 12
IJT LSP will start. As per the Article 5.2 of 12 LSP IJT Contract, Stores to be supplied under this contract shall be new
i.e. not manufactured before and shall incorporate all the latest improvement and modification thereto. Therefore, Parts
manufactured and lying in Inventory could not be used for delivery of ultimate product to the customers at this stage.
Accordingly, Work in progress of ` 26589 Lakhs lying in the Books of IJT Division as on 31.03.2022 has been fully provided
for in line with Company’s accounting procedure.
Similarly, Kanpur Division of HAL has received order for supply of Series production of 72 IJT which will start after completion
of supply of 12 IJT by IJT LSP Division. Accordingly, Net realisable value of Stock in Trade and Finished Goods of valuing ` 5705
Lakhs in the Books of Lucknow and Hyderabad Division has been considered as NIL in the Books of Lucknow and Hyderabad
Division as on 31.03.2022.
25.1 Capital Work-in-progress As at As at

Deletions 16806 45132

25.2 Capital Work-in-Progress (CWIP) Ageing schedule ` in Lakhs

Particulars As at 31.03.2022 As at 31.03.2021
Less 1-2 years 2-3 More than 3 Less 1-2 years 2-3 More than 3
than 1 years years than 1 years years
year year
(i) Projects in 39494 19660 12757 22999 94910 20673 15085 23533 7042 66333
progress
(ii) Projects - - - - 0 - - - - 0
temporarily
suspended
Total 39494 19660 12757 22999 94910 20673 15085 23533 7042 66333
Capital Work-in-Progress (CWIP), whose completion is overdue or has exceeded its cost compared to its original plan:
CWIP completion Schedule
` in Lakhs
CWIP (individual project As at 31.03.2022 As at 31.03.2021
wise details) To be completed in To be completed in
Less 1-2 2-3 More Less than 1-2 years 2-3 years More
than 1 years years than 3 1 year than 3
year years years
(i) Aerospace 29 0 0 0 57 0 0 0
(ii) LCH 599 0 0 0 599 0 0 0
(iii) ALH 142 0 0 0 95 69 0 0
(iv) LUH 3013 0 0 0 0 0 0 0
(v) SU-30 18336 0 0 0 6029 0 0 0
(vi) General purpose CWIP 10967 979 0 0 15480 171 0 0
(vii) Project pertaining to 109 118
Subsidiary Company
Projects where activity has
been suspended
(i)
Total 33086 1088 0 0 22378 240 0 0
26. Intangible assets under development - Ageing schedule ` in Lakhs
Less than 1-2 years 2-3 years More Less than 1-2 years 2-3 years More
1 year than 3 1 year than 3
years years
(i) Projects in 30884 24572 20278 82125 157859 24228 20735 38132 46545 129640
progress
(ii) Projects - - - - 0 - - - - 0
temporarily
suspended
Total 30884 24572 20278 82125 157859 24228 20735 38132 46545 129640

For Intangible assets under development, whose completion is overdue or has exceeded its cost compared to its
original plan: Intangible assets under development completion Schedule
` in Lakhs
Intangible assets under As at 31.03.2022 As at 31.03.2021
development To be completed in To be completed in
Less 1-2 2-3 More Less than 1-2 years 2-3 years More
than 1 years years than 3 1 year than 3
year years years
(i) Development projects 296 0 0 0 168 0 0 0
Projects where activity has
been suspended
(i)
Total 296 0 0 0 168 0 0 0
27.1. Trade Receivables Ageing schedule (Note - 15) ` in Lakhs
Particulars As at 31.03.2022
Outstanding for following periods from due date Un Not due Total
of payment billed
Less 6 1-2 2-3 More
than 6 months years years than 3
months - 1 year years
(i) Undisputed Trade 198611 115864 105430 34477 9771 0 0 464153
receivables - considered
good
(ii) Undisputed Trade 0 0 0 0 0 0 0 0
receivables - which have
significant increase in
credit risk
(iii) Undisputed Trade 2 7 19 5 13874 0 0 13907
receivables - credit
impaired
(iv) Disputed Trade receivables 0 0 0 0 0 0 0 0
- considered good
(v) Disputed Trade receivables 0 0 0 0 0 0 0 0
- which have significant
increase in credit risk
(vi) Disputed Trade receivables 0 0 0 0 0 0 0 0
- credit impaired
Less : Allowance for Doubtful 2 7 19 5 13874 0 0 13907
Debts
Total 198611 115864 105430 34477 9771 0 0 464153

` in Lakhs
Outstanding for following periods from due date of Un billed Not due Total
payment
Less than 6 months 1-2 years 2-3 years More
6 months - 1 year than 3
years
(i) Undisputed Trade 337134 94334 92634 33840 8863 0 0 566805
receivables - considered
good
(ii) Undisputed Trade 0 0 0 0 0 0 0 0
receivables - which have
credit risk
(iii) Undisputed Trade 0 117 2204 0 11185 0 0 13506
receivables - credit
impaired
(iv) Disputed Trade receivables 0 0 0 0 0 0 0 0
- considered good
(v) Disputed Trade receivables 0 0 0 0 0 0 0 0
(vi) Disputed Trade receivables 0 0 0 0 0 0 0 0
- credit impaired
Debts
Total 337134 94334 92634 33840 8863 0 0 566805
27.2. Contract Assets Ageing schedule (Note - 15A) ` in Lakhs
of payment billed
Less 6 1-2 2-3 More
(i) Undisputed Contract 416027 114219 145053 62633 85255 58047 0 881234
Assets - considered good
(ii) Undisputed Contract 0 0 0 0 4752 0 0 4752
Assets - which have
credit risk
(iii) Undisputed Contract 0 0 0 232 0 0 0 232
Assets - credit impaired
(iv) Disputed Contract Assets - 0 0 0 0 0 0 0 0
considered good
(v) Disputed Contract Assets 0 0 0 0 0 0 0 0

` in Lakhs
of payment billed
Less 6 1-2 2-3 More
(vi) Disputed Contract Assets - 0 0 0 0 0 0 0 0
credit impaired
Debts
Total 412628 112382 135709 52792 22935 44419 0 780865
` in Lakhs
Outstanding for following periods from due date of Un billed Not due Total
payment
Less than 6 months 1-2 years 2-3 years More
6 months - 1 year than 3
years
(i) Undisputed Contract 338455 86648 220150 115079 30191 57101 0 847624
Assets - considered good
(ii) Undisputed Contract 0 0 0 0 0 0 0 0
Assets - which have
credit risk
(iii) Undisputed Contract 0 0 0 0 0 0 0 0
Assets - credit impaired
(iv) Disputed Contract Assets - 0 0 0 0 0 0 0 0
considered good
(v) Disputed Contract Assets 0 0 0 0 0 0 0 0
(vi) Disputed Contract Assets - 0 0 0 0 0 0 0 0
credit impaired
Debts
Total 338455 86648 220150 115079 29682 54754 0 844768

28. Trade Payables Ageing schedule (Note - 31)

` in Lakhs
Outstanding for following periods from due Un billed Not due Total
date of payment
Less than 1-2 years 2-3 years More
1 year than 3
years
(i) Micro enterprises and Small 3647 127 5 0 0 796 4575
enterprises
(ii) Other than Micro enterprises 199644 11525 3560 30774 5323 360 251186
and Small enterprises
(iii) Disputed dues - Micro 0 0 0 0 0 0 0
enterprises
(iv) Disputed dues - Other than 0 0 0 0 0 0 0
Micro enterprises and Small
enterprises
Total 203291 11652 3565 30774 5323 1156 255761
` in Lakhs
Outstanding for following periods from due date Un billed Not due Total
of payment
1 year 3 years
(i) Micro enterprises and Small 5158 51 0 0 0 0 5209
enterprises
(ii) Other than Micro enterprises 158453 20463 2615 21776 17045 0 220351
and Small enterprises
(iii) Disputed dues - Micro 0 0 0 0 0 0 0
enterprises
(iv) Disputed dues - Other than 0 0 0 0 0 0 0
Micro enterprises and Small
enterprises
Total 163611 20514 2615 21776 17045 0 225560

29. Disclosure under Ind AS 116 as lessee:

a) As a Lessee:
` in Lakhs
Sl. No. Particulars 31 March 2022
st
31 March 2021
st
1. depreciation on right-of-use assets for the year ended 292 64

2. interest expense on lease liabilities for the year ended 17 17
3. total cash outflow for leases for the year ended 7 297
4. additions to right-of-use assets for the year ended 0 8108
5. carrying amount of right-of-use assets as at 8574 9280
One Avro Aircraft (BH 572) is on lease from Indian Air Force for a period of 1 year for an amount of ` 228 lakhs. The
charges for the same has been accounted as expenditure of ` 228 lakhs for the year ended 31st March 2022. The Group
has option to renew the lease subject to increment of 9% over previous year.
b) As a Lessor:
The Group leases out its Investment property and Property, Plant and Equipment . The Group has classified these lease as
operating leases, as there is no transfer substantially all the risks and rewards incidental to the ownership of the assets.
Clause 30 of Note 49 gives information about the operating leases of Investment Property.
` in Lakhs
Operating Lease For the year For the year
ended ended
Lease income 1481 1312
The Property, Plant and Equipment disclosed under Note 1A includes the following assets given on Operating Lease
` in Lakhs
Gross Accumulated Net Depreciation Gross Accumulated Net Depreciation
Block Depreciation Block Charge for Block Depreciation Block Charge for
the year the year
Land - Freehold 94 0 94 0 94 0 94 0
Buildings - Owned 14 11 3 0 14 11 3 0
Aircraft/Helicopters 1610 416 1194 81 1610 335 1275 81
Total 1718 427 1291 81 1718 346 1372 81
The maturity analysis of lease payments (including payments from Investment Property) showing the undiscounted minimum lease
payments to be received over the remaining non-cancellable term on an annual basis are as follows:
` in Lakhs
Term 31st March 2022 31st March 2021
Less than one year 495 765
One to Two years 357 477
Two to Three years 375 341
Three to Four years 395 358
Four to Five years 130 376
More than Five years 1952 436
Total undiscounted lease payments 3702 2753

Credit Risk
The Group has leased out its Properties to Joint Ventures and Other agencies. Lease payments are structured with periodic
escalations consistent with the prevailing market conditions. Based on the Credit Risk in lease payments, suitable provision has
been made.
` in Lakhs
Particulars For the year ended For the year ended
30 Information regarding income and expenditure of Investment
property As per Ind AS 40 - Investment property:
Rental income derived from investment properties 1,240 694
Direct operating expenses (including repairs and maintenance) generating - -
rental income
Direct operating expenses (including repairs and maintenance) that did not - -
generate rental income
Profit arising from investment properties before depreciation and Indirect 1,240 694
expenses
Less – Depreciation - -
Profit arising from investment properties before Indirect expenses 1,240 694
Fair value of investment property

As at 31st March 2022, the fair value of the properties is ` 9627 lakhs as valued by an Registered valuer as defined under
rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
` in Lakhs
31. Particulars For the year ended
As per Ind AS-33 relating to Earnings per Share (Basic and Diluted)-
Profit Before Tax 522453 428348
Provision for Taxation 14465 103793
Net Profit After Tax 507988 324555
Weighted Average Number of Equity Shares of Face Value of ` 10/- each 334387500 334387500
fully paid up
Earnings per Share (in Rupees) - Basic 151.92 97.06
Earnings per Share (in Rupees) - Diluted 151.92 97.06
32. Revaluation of Property, Plant and Equipment The Group has not revalued its Property, Plant and Equipment
33. Details of Benami Property held as at 31st March 2022

` in Lakhs
Details of (a) year of (b) Amount (c) Details of (d) If (e ) If (f) Where there are (g) Nature of
property acquisition thereof Beneficiaries property property proceedings against proceedings,
is in the is not in the company under status of
books, then the books, this law as an abetter same and
reference to then the of the transaction or company’s
the item in fact shall be as the transferor then view on same
the Balance stated with the details shall be
sheet reasons provided


` in Lakhs
Details of (a) year of (b) Amount (c) Details of (d) If (e ) If (f) Where there are (g) Nature of
property acquisition thereof Beneficiaries property property proceedings against proceedings,
is in the is not in the company under status of
books, then the books, this law as an abetter same and
reference to then the of the transaction or company’s
the item in fact shall be as the transferor then view on same
the Balance stated with the details shall be
sheet reasons provided
34. Where the Company has borrowings For the year ended 31st March 2022 For the year ended 31st March 2021
from banks or financial institutions on
the basis of security of current assets
(a)
Whether quarterly returns or The Company has been sanctioned The Company has been sanctioned
statements of current assets filed working capital limits of ` 400000 working capital limits of ` 1000000
by the Company with banks lakhs, non-fund based limits of lakhs, non-fund based limits of
or financial institutions are in ` 205000 lakhs and Corporate loan ` 205000 lakhs by consortium of
agreement with the books of of ` 183000 lakhs by consortium of Bankers. As on 31.03.2021, no fund
accounts. Bankers. As on 31.03.2022, no fund based limits were utilised by the
based limits and Corporate Loans were Company against the sanctioned limits.
utilised by the Company against the The quarterly stock statements filed
sanctioned limits. by the Company and the Books of
Due to timing differences in filing Account are in agreement.
the quarterly stock statements with
the bank and finalisation of Audited
Accounts,there is a difference between
drawing power (DP) as submitted to the
Banks and DP assessed based on the
Quarterly Audited Accounts. However,
the differences are not material.
(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed
35. Wilful Defaulter
The company has not been declared wilful defaulter by any Bank or Financial institutions.
As at As at
(a) Date of declaration as wilful defaulter NA NA
(b) Details of defaults (amount and nature of defaults) NA NA
36. The company did not have any transactions with any Struck off Companies (under section 248 of Companies Act, 2013) as
certified by the Management.
37. Compliance with number of layers of companies NA
38. Compliance with approved Scheme(s) of Arrangements NA
39. Utilisation of borrowed funds and share Premium through intermediaries or for benefit of third party beneficiaries:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company, its subsidiary, associate 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 lend or invest
in party identified by or on behalf of the Company, its subsidiary, associate, (Ultimate Beneficiaries).
The Company have not received any fund from any party(s) (Funding Party) with the understanding that the Company , its
subsidiary, associate, shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf
of the Company, its subsidiary, associate (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
40. Undisclosed Income
Details of any transaction not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961(such as search or
survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for NIL NIL
disclosure under any scheme and previously unrecorded income and related assets that have been
properly recorded in the books of accounts during the year.
41. Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year 2021-22 (P.Y. Nil)
42. Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2022, as below.
IndAS 16–Property Plant and equipment-The amendment clarifies that excess of net sale proceeds of items produced
over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs
considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment
is annual periods beginning on or after April 1, 2022. The Group has evaluated the amendment and there is no impact on its
consolidated financial statements.
Ind AS 37–Provisions, Contingent Liabilities and Contingent Assets–The amendment specifies that the ‘cost of
fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either
be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that
relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property,
plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods
beginning on or after April 1, 2022, although early adoption is permitted. The Group has evaluated the amendment and
there is no impact on its consolidated financial statements.
43. The financial statements were approved for issue by the Board of Directors at their meeting held on 13 May, 2022.
These financial statements are presented in Indian rupees (rounded off to lakhs). Previous Year figures have been rearranged
or regrouped wherever necessary.

Place: Bangalore
Date: 13.05.2022

Form AOC-1
Statement containing salient features of the financial statement of subsidiaries/Associate companies/ joint ventures
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Part “A” : Subsidiaries
Sl. No. Particulars ` in Lakhs

1 Name of the Subsidiary Naini Aerospace Indo-Russian
Limited Helicopters Limited
2 Reporting period for the subsidiary concerned, if different from the NA NA
holding company’s reporting period
3 Reporting currency and Exchange rate as on the last date of the relevant NA NA
Financial year in the case of foreign subsidiaries.
4 Share capital 5000 1000
5 Reserves & surplus -5826 -241
6 Total assets 2543 832
7 Total Liabilities 3369 73
8 Investments 1089 0
9 Turnover 413 0
10 Profit/loss before taxation -1282 -33
11 Provision for taxation 0 0
12 Profit/loss after taxation -1282 -33
13 Proposed Dividend 0 0
14 % of shareholding 100% 50.5%
1 Names of subsidiaries which are yet to commence operations – Indo Russian Helicopters Limited
2 Names of subsidiaries which have been liquidated or sold during the year- NIL

Place: Bangalore
Date: 13.05.2022

Form AOC-1
Part “B” : Associates and Joint Ventures
` in Lakhs
Sl. Name of Joint Venture M/s BAe-HAL Safran HAL M/s SAMTEL M/s HAL M/s HALBIT M/s Indo M/s INFOTECH M/s HATSOFF M/s TATA HAL M/s M/s Multirole M/s Aerospace M/s Helicopter Defence
No. Software Ltd Aircraft Engines HAL Display Edgewood Avionics Russian HAL Ltd Helicopter Technologies International Transport & Aviation Engines MRO Innovation
Private Ltd Systems Ltd Technologies Pvt Ltd Aviation Ltd Training Ltd Aerospace Aircraft Ltd. Sector Skill Pvt Ltd Organisation
Pvt Ltd Pvt Ltd Manufacturing Council (DIO)
Pvt Ltd (AASSC)
1 Latest audited Balance Sheet Date 31.03.2022 31.03.2022 31.03.2022 31.03.2022 31.03.2022 31.03.2022 31.03.2022 31.03.2022 30.06.2021 31.03.2022 31.03.2022 31.03.2022 31.03.2022 31.03.2022
2 Date on which the Associates or joint Feb-93 Oct-05 Jan-07 Apr-07 May-07 Sep-94 Aug-07 Jan-08 May-08 Jul-10 Dec-10 Sep-14 Aug-16 Apr-17
venture was associated or acquired
3 Shares of Associate/Joint Ventures
held by the company on the year end
a No. 2940000 1140000 160000 300000 382500 936525 2000000 38404205 5070000 4250000 11346564 125 1509986 50
b Amount of Investment in Associates/ 294 1140 160 300 383 94 200 3840 507 4250 11347 13 1510 1
Joint Venture
c Extent of Holding % 49% 50% 40% 50% 50% 48% 50% 50% 50% 50% 50% 50% 50% 50%

4 Description of how there is NA NA NA NA NA NA NA NA NA NA NA NA NA NA
significant influence
5 Reason why the associate/joint NA NA NA NA NA NA NA NA NA NA NA Does not NA Does not
venture is not consolidated exercise exercise
control control
6 Networth attributable to 300 4113 -369 0 -556 7271 0 -1643 34 5042 8617 13 1099 1
Shareholding as per latest audited
Balance Sheet
7 Profit / Loss for the year -290 610 25 0 54 785 0 911 -18 717 -1105 NA -50 NA
i Considered in Consolidation -142 305 0 0 0 377 0 0 0 359 -553 NA -25 NA
ii Not Considered in Consolidation -148 305 25 0 54 408 0 911 -18 359 -553 NA -25 NA
1 Name(s) of joint venture(s) which is/are yet to commence operations:-
a Multi-Role Transport Aircraft Limited
2 Names of associates or joint ventures which have been liquidated or sold during the year-NIL

Place: Bangalore
Date: 13.05.2022
NOTES

NOTES

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15/1, Cubbon Road, Bengaluru-560 001. Karnataka
CIN: L35301KA1963GOI001622
Phone : (080) 2232 0001, Fax: (080) 2232 0758
Website: www.hal-india.co.in

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Hindustan Aeronautics Limited

06 Corporate Information 141 Independent Auditor’s Report

13 Major Achievements and Events 164 Balance Sheet

18 Financial Highlights 166 Statement of Profit and Loss

22 Notice of 59th Annual General Meeting 168 Statement of Changes in Equity

170 Statement of Cash Flow

172 Significant Accounting Policies

180 Notes to Financial Statements

33 Board’s Report Consolidated

46 Annexures to Board’s Report 275 Independent Auditor’s Report

86 Management Discussion & Analysis Report 287 Comments of the C & A G

93 Corporate Governance Report 294 Balance Sheet

298 Statement of Changes in Equity

300 Statement of Cash Flow

302 Significant Accounting Policies

310 Notes to Financial Statements

Annual Report 2021-22 1

2 Hindustan Aeronautics Limited

Annual Report 2021-22 3

4 Hindustan Aeronautics Limited

Annual Report 2021-22 5

Shri R Madhavan Shri Chandraker Bharti

Shri Jayadeva E P Shri Deepak Abasaheb Shinde

Shri G. V. Sesha Reddy

6 Hindustan Aeronautics Limited

M/s. Maharaj NR Suresh and Co.,LLP M/s. A P Kunjithaya & Co.,

M/s. P. L. Tandon & Co.,

Annual Report 2021-22 7

An avid reader and active in professional societies, Shri. Madhavan is a member of

8 Hindustan Aeronautics Limited

Annual Report 2021-22 9

10 Hindustan Aeronautics Limited

Shri Deepak Abasaheb Shinde

Annual Report 2021-22 11

Shri Amitabh Bhatt

Shri Dibyendu Maiti

12 Hindustan Aeronautics Limited

Advanced Light Helicopter Dhruv Mk III MR

HAL successfully integrated Medical

Annual Report 2021-22 13

Hon’ble Prime Minister, Shri Narendra Modi

HAL delivered second batch of two Dhruv Mk-

In-line with Government’s vision to boost defence exports

HAL handed over second interim dividend cheque

14 Hindustan Aeronautics Limited

Hon’ble Vice President of India, Shri Venkaiah Naidu,

Shri. Ashwani Bhatia, Managing Director (CB & GM),

Air Chief Marshal V.R. Chaudhari, PVSM, AVSM,

Shri Ajay Bhatt, Hon’ble Minister of State for

Annual Report 2021-22 15

16 Hindustan Aeronautics Limited

Hon’ble Defence Minister, Shri Rajnath Singh and

HAL supported the establishment of Centralized

HAL has constructed New School Building &

Model Schools equipped with Smart Class Rooms were

Annual Report 2021-22 17

Sales - Inland ` Cr. 8284 9937 11252 12878 13856 13941

Export Sales ` Cr. 341 437 205 237 348 383

Total Sales ` Cr. 8625 10374 11457 13115 14204 14324

Total ` Cr. 8791 11811 13490 16450 12693 14202