Annual Report 2020

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Annual Report 2020 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise CONTENTS 1. Chairman Speech 9-12 2. Notice 13-16 3. Profile of Directors 17-21 4. Board's Report 22-32 5. Annual Return Extracts in MGT 9 (Annexure-I) 33-38 6. Form no.-AOC-2 (Annexure-II) 39-42 7. Compliance Certificate on Corporate Governance (Annexure-III) 43 8. Annual Report on Corporate Social Responsibility (Annexure-IV) 44-49 9. Secretarial Audit Report (Annexure-V) 50-53 10. Replies to the observations/comments made by Secretarial Auditors in their Report (Annexure-VI) 54 11. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo (Annexure-VII) 55-56 12. Dividend Distribution Policy 57-60 13. Management Discussion and Analysis Report 61-76 14. Report on Corporate Governance 77-87 15. Auditor's Report and Financial Statement-Standalone 88-158 16. Auditor's Report and Financial Statement-Consolidated 159-226 17. C&AG Comments 227-228 18. Financial Data for last 10 years 229 Read Report Online at www.railtelindia.com 1 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise MANAGEMENTMANAGEMENT TEAMTEAM PRESENT COMPOSITION OF BOARD OF DIRECTORS KEY MANAGERIAL PERSONNEL (KMPs) REGIONALREGIONAL OFFICESOFFICES Shri K.L. Kataria, Executive Director (1/c) 6th Floor, Illrd Block, Delhi Technology Park , Shastri Park, New Delhi-110053 Tele : 011-22185933/34 • Fax : 011-22185978 Shri Chandra Kishore Prasad , Executive Director (1/c) 2nd Floor , B Block , Rail Nilayam , Secunderabad -500071 Tele: 040-27821134 • Fax : 040-27820682 Shri Arun Michael , Executive Director (1/c) 3rd Floor Chatterjee International Centre ,33A, Jawaharlal Nehru Road, Kolkata - 700071 Tele: 033-44041499 • Fax : 033-44041499 Shri S.K. Albela, Executive Director Western Railway Microwave Complex, Senapati Bapat Marg, Mahalakshmi Mumbai – 400013 Tele: 022-24923907 • Fax: 022-24923913 2 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise REFERENCE INFORMATION REGISTERED & CORPORATE OFFICE: Plate-A, 6th Floor, Office Block Tower-2, East Kidwai Nagar, New Delhi-110023 Tele: 011-22900600 • Fax: 011-22900699 BANKERS STATUTORY AUDITORS HDFC Bank Punjab & Sind Bank BRANCH AUDITORS M/s Suresh Chandra & Associates, Chartered Accountants 504, Prakash Deep Building, 7, Tolstoy Marg, Connaught Place, New Delhi-110001 • Tele: 011- 43537679 • Fax: 011- 43537679, E-mail: [email protected] M/s. Tukaram & Co. LLP, Chartered Accountants 3-6-69 Flat No. 209, Venkatarama Towers, Opp. Talwalkars, Basheerbagh, Hyderabad-500029 • Tele: 040-23228785, 040-23221536 E-mail: [email protected] M/s K.N. Gutgutia & Co, Chartered Accountants 6C, Middleton Street, Flat No. 23 (2nd Floor), Kolkata-700071 • Tele: 033-22873735/56 • Fax: 033-22873756, E-mail: [email protected] M/s Om Prakash S. Chaplot & Co., Chartered Accountants 102, Vatsalya Building, Ekta CHS Nr. RTO Office, RTO Road, Andheri (W) Mumbai – 400053 • Tele: +91-996-707-1844 E-mail:- [email protected] 3 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise INTERNALINTERNAL AUDITORSAUDITORS M/s. APT & Co. LLP A-2/36, IIIrd Floor, Safdarjung Enclave, New Delhi-110029 Tel: 9810751999 • E mail:[email protected] M/s. Amit Ray & Co. H/J-17/1, S.L. Sarani, Baguiati, Gautampura, Ashwini Nagar, Kolkata, West Bengal-700159 Tel: 033-25709112 • E-mail:[email protected] M/s Agarwal & Dhandhania 204-205, SNS Interio, 4th Floor, Bhatar Althan Road, Near Gujarat Gas Pump, Surat,Gujarat-395017 Tel: 0261-2269131 • E mail : [email protected] M/s. KRA & Co. H-1, 208, Garg Tower, Netaji Subhash Place, Pitampura, Delhi-110034 • Tel: 011-47082855 E-mail:[email protected] M/s. Gianender & Associates Plot no. 6, Site no. 28, Geeta Mandir Marg, New Rajinder Nagar, New Delhi -110060 Tel: 011-28743942• E-mail:gka_ma @yahoo.com SECRETARIAL AUDITORS COST AUDITORS M/s. P.C. Jain & Co., Company Secretaries M/s R. J. Goel & Co., Cost Accountants 2382, Sector-16, Faridabad-121002, Haryana 31, Community Centre, Ashok Vihar, Phase-1, Tele: 0129-4043338 Delhi-110052 • Tele: 011-27234124 E-mail: [email protected] E-mail: [email protected] REGISTRAR & SHARE TRANSFER AGENT: DEPOSITORIES KFin Technologies Private Limited National Securities Depository Ltd. (NSDL) Selenium Tower-B, Plot No. 31 & 32, Central Depository Services (India) Ltd. (CDSL) Financial District, Nanakramguda, Serilingampally, Hyderabad, ISINISIN NO.NO. Rangareddi, Telangana India - 500 032 Website: www.kfintech.com INE0DD101019 4 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise 5 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise KEY FINANCIAL HIGHLIGHTS OSS N CONSOATED) N CO 1166 1038 1031 903 648 16% CA FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 OSS AN N CO 361 327 313 305 275 7% CA FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 6 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise DIVIDEND PAYOUT IN CRORE 68 64 62 52 42 13% CAGR FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 NET WORTH IN CRORE 1,361 1,284 1,249 1,157 1,084 6% CAGR FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FIXED ASSETS (GROSS BLOCK) IN CRORE 1,942 1,856 1,643 1,531 1,431 8% CAGR FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 7 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise REVENUE MIX NLD SERVICES 37% INCOME FROM OTHER PROJECTS 15% OTHER INCOME 3% ISP SERVICES 15% OTHER OPERATING REVENUE 1% 8 IP-1 SERVICES 15% INCOME FROM RAILWAY PROJECTS 14% NLD SERVICES OTHER INCOME OTHER OPERATING REVENUE INCOME FROM RAILWAY PROJECTS IP-1 SERVICES ISP SERVICES INCOME FROM OTHER PROJECTS RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise Chairman's Speech The current crisis has thrown up new challenges and has preponed “ “ “ the investment cycle in ICT space which we intend to harness for future growth. Dear Shareholders, I welcome you all to this 20th Annual General Meeting of your Company. The Directors’ Report and the Audited Accounts for the year 2019-20 are already with you and with your permission; I may take these as ‘Read’. Financial Performance In the current year, your company, achieved Rs. 1112 crores turnover, with an operating margin of Rs. 199 crores. The profit before tax amounted to Rs 181 crores and net profit to Rs. 138 crores. On consolidated basis, RailTel has achieved highest ever turnover of Rs. 1166 Crore , an increase of 12.3% over 2018-19. Profit before tax & profit after tax were Rs.185 Crore & Rs. 141 crore respectively. The company has paid an interim dividend of Rs. 20 crores and has proposed total dividend of Rs 68.06 Cr. Your Company is also required to pay Rs. 31.81 crores towards revenue share to 9 RKDRNIN=GIMLNV9= WK$QQXDO5HSRUW A Mini Ratna Enterprise Railways during the year. The company is constantly implementation at 106 locations of IR planned in paying license fee to DoT and has paid Rs 47.93 phase – I & II and the balance locations are sanctioned crores in FY 2019-20. All other statutory liabilities in Phase-III. There are 1.14 lacs users on IR with 7.6 including Income Tax, GST etc. are also being paid lac e-files and 27.6 lac e-receipts created till 30th timely. Sept’20. I am happy to inform you that despite competition in RailTel is in the process of providing Content on the telecom market RailTel is a profit making CPSU Demand service to passengers in trains by preloading in telecom sector. multilingual content (Movies, Music Videos, General Entertainment, Lifestyle etc) on media servers OFC Network installed in trains. The Content on Demand service During the year, the OFC network of RailTel stood will not only improve overall passenger experience at 52025 RKMs. As on date the OFC networks spans but at the same time will increase the non-fare revenue 58000+ RKMs along the Railway track and 13000 through multiple monetization models. KMs of access networks. Hospital Management Information System RailCloud and Security Operation Centre (HMIS) is an Integrated clinical information system Your company has also created a RailCloud at its for improved patient services, health care and hospital two tier III certified Data Centres at Gurgaon and administration which helps in creation of an accurate, Secunderabad from where the e office suite and electronically stored, secure and easily accessible other applications are deployed using the Cloud with medical record. RailTel is implementing the project shared compute power and storage resources along for 2 Railway Hospitals and 13 Health Units of Delhi with managed Network and Data Security resources, Area as a pilot project. reducing the time to deploy services Indian Railways have mandated RailTel to provide As our dependence on telecom infrastructure IP based Video Surveillance Systems across 6124 grows exponentially, security and reliability of this railway stations and 14787 premium train and EMU infrastructure assumes ever greater importance. Your coaches. We have completed 231 stations in FY’19- company has also created a SOC (Security Operations 20. Tender for 928 nos. stations under Nirbhaya Center) where tools are deployed and dedicated funding are being invited shortly. personnel track all suspicious activity and ensure RailWire-Retail Broadband Initiative proactive defense of the system rather than reactive forensic approach. RailTel has registered an impressive growth in its retail broadband business service RailWire. It Projects for Indian Railways is a collaborative model in partnership with local Continuing our endeavour of providing Wi-Fi facilities entrepreneurs & local cable operators for providing at railway stations in the country we are now rolling access network. There are more than 2.6 lakh RailWire out Wi-Fi at all feasible (except the halts) railway broadband customers in the SMEs/household segment stations.
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