The total revenue of HZL increased from Rs.129,481.40 million in the year 2011-12 to Rs. 169,558.60 million crores in the year 2015-16. Also the net profit after tax increased from Rs. 55260.40 million in the year 2011-12 to Rs.81665.80 million in the year 2015-16. However, in the year 2015-16, a decline of 3.7% and 0.13% was observed in the total revenues and net profit of the firm compared to the previous year (Refer to Exhibit-III for Operating Performance of HZL). The total investments in non-current assets increased from Rs. 98507.80 million in the year 2011-12 to Rs.181,544.70 million in the year 2015-16, while investments in current assets increased from Rs. 196342.10 million in the year 2011-12 to Rs. 370893.20 million in the year 2015-16 (Refer to Exhibit-IV for Break-up of HZL’s Non-Current Investments). The majority of investments in current assets included current investments held for the purpose of trading activities on stock exchanges. The current investments were made in the purchase and sale of bonds, debentures, and mutual funds. ..

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HIGHER DIVIDENDS?

Amid strong future business forecasts, a favorable operating and financial position, and regular payment of dividends, HZL was considered to be a strong company with the potential to pay higher dividends than it had been paying. According to an analysis done by an investors’ advisory services organization, Institutional Investors Advisory Services (IiAS), HZL was considered to be one of the top 73 S&P BSE index companies that had the potential to pay higher dividends than it was paying. To conduct the analysis, IiAS considered companies with a profitability of above Rs.500 million and a positive cash flow from operations. The positive operational cash flows were calculated by deducting 75% of the average of three years’ capital expenditure and deducting the equity and preference dividends paid during the fiscal year 2015. ...

EXHIBITS

Exhibit I: Shareholding Pattern of HZL as on March, 31, 2016.
Exhibit II : Dividend Payment History of HZL.
Exhibit III : Operating Performance of HZL (2011-2016)
Exhibit IV : Break-up of HZL’s Non-Current Investments (2011-2016).
Exhibit V : Trends in Reserves and Surpluses and Cash and Cash Equivalents (2011-16)