MECON LIMITED MECON LIMITED (A Govt

MECON MECON

MECON LIMITED MECON LIMITED (A Govt. of India Enterprise) (A Govt. of India Enterprise)

Head O ce Vivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India CIN No. - U74140JH1973GOI001199 www.meconlimited.co.in

For Business Enquiry Chief General Manager (Marketing) Phone : +91-651-2483101, Fax : +91-651-2482214/ 2482189 E-mail: [email protected]

Major O ces

City Phone Fax e-mail Bangalore +91-80-26252000 +91-80-26576352 [email protected] New Delhi +91-11-22041872 +91-11-22041214 [email protected] 47th ANNUAL REPORT Find us on : @MECONLimited @meconranchi meconranchi 2019-20

217_1120_ Anapurna Press & Process 0651-2331800, [email protected] GLIMPSES OF CSR ACTIVITIES

Hon’ble Shri Rabindra Nath Mahto, Speaker Jharkhand Vidhan Sabha Towards Adopting COVID 19 appropriate behavior in New Normal, a Construction of Community Toilet Complex at Hamlet- Bartoli at "Community Education Centre at Irgoo toli, & his team visited MECON pledge taking ceremony was organized at MECON Adopted Village- Pancha, Block- Bundu, District- Ranchi Kishoreganj, District- Ranchi"

MECON CSR team led by Shri R.H. Juneja, Director (F) and Shri On the occasion of Rashtriya Ekta Diwas, a pledge taking ceremony Free Health Camp at Adopted Village- Sungi, Nutritional Supplementation program for the children of Adopted Sanjeev Kumar, ED (CS) distributed masks and soaps in Sungi Village, was held at MECON office, Shri Salil Kumar, Director (P) administered Block- Karra, District- Khunti Village- Sungi, Block- Karra, District- Khunti as part of COVID 19 Appropriate Behavior Awareness Campaign pledge in Hindi and Shri R.H. Juneja, Director(F) in English

In recognition of initiatives towards promoting gender equality Shri R.H. Juneja Director (F) graced as Guest of Honour at 41st Construction of Boys Hostel Building at Orphanage - Hostel of “Swachhata Shapath” and a talk on “Swachhata and Hygiene MECON has been conferred with ‘Recognition of WIPS Activities Cost Conference organized by EIRC of ICMAI Adopted Village- Sungi, Block- Karra, District- Khunti practices” at Adopted Village- Pancha, Block- Bundu, District- Ranchi Award, tribute to Excellence in Public Enterprise Management under Miniratna & other category’ at 30th National Meet of WIPS To be an internationally recognized brand VISION in design, engineering, consultancy, project management and EPC execution.

• To be a global centre of excellence for providing innovative and cost–effective engineering and technological solutions in Metals & Mining as well as diversified sectors like Energy, Infrastructure, Space, Defence etc. • Leverage deep domain knowledge in the metals and mining sectors to provide solutions from concept to commissioning. MISSION • Leverage in-house capabilities to provide engineering, technological and project management services to priority sectors of economy. • Develop indigenous technological base and promote self reliance. • Expand geo-strategic presence and export of services. MECON

MECON Limited

Shri Dharmendra Pradhan Hon’ble Union Minister of Petroleum & Natural Gas and Minister of Steel, Govt. of India

Shri Faggan Singh Kulaste Hon’ble Union Minister of State for Steel Govt. of India

Shri Pradip Kumar Tripathi Secretary to GoI, Ministry of Steel LEADERSHIP AT MECON

Shri Atul Bhatt Chairman and Managing Director

Smt. Rasika Chaube Shri Vijoy Kumar Singh Government Director Government Director

Shri Salil Kumar Shri R. H. Juneja Shri S.K. Verma Shri A. K. Agrawal Director (Projects) Director (Finance) Director (Commercial) Director (Technical)

Shri Deepak Krishan Smt. Manju Chandra Independent Director Independent Director As on the date of AGM CORPORATE INFORMATION

BOARD LEVEL COMMITTEES* BANKERS

Audit Committee State Bank of India Shri Deepak Krishan Union Bank of India Smt. Manju Chandra Indian Overseas Bank Shri R.H. Juneja Bank of Baroda CSR & Sustainability Committee United Bank of India Smt. Manju Chandra YES Bank Shri Deepak Krishan Andhra Bank Shri R.H. Juneja HDFC Bank Nomination & Remuneration Canara Bank Committee Axis Bank Shri Deepak Krishan ICICI Bank Smt Rasika Chaube IndusInd Bank Smt. Manju Chandra Shri Atul Bhatt STATUTORY AUDITOR

COMPANY SECRETARY M/s V. Rohatgi & Company Chartered Accountants, Shri Ravi Bambha 1st Floor, Sarjana Building,1, Main Road, Ranchi – 834001 (Jharkhand)

FINANCE INCHARGE REGISTERED OFFICE Shri S. Samanta Vivekanand Path, Doranda Ranchi - 834002 Jharkhand INDIA Website : www.meconlimited.co.in CIN : U74140JH1973GOI001199

*As on the date of AGM CONTENTS

6 Chairman’s Speech

9 Board Report

30 MGT 9 - Extract of Annual Return

38 AOC 2 - Statement pursuant to Section 134

39 Corporate Social Responsibility (CSR) & Sustainability

69 Technology Absorption

71 Management Discussion & Analysis Report (MDAR)

77 Report on Corporate Governance

83 Independent Auditors’ Report

94 C&AG’s Comments

95 Balance Sheet

96 Statement of Profit & Loss

97 Statement of Changes in Equity

98 Cash Flow Statement (Indirect Method)

100 Notes to Financial Statements

152 AOC 1 - Statement pursuant to Section 129 MECON MECON Limited CHAIRMAN’S SPEECH

Dear Fellow Shareholders, great pleasure to inform you that your Company has welcome you all to the 47thAnnual General Meeting booked orders worth ₹4929.87 Crore, surpassing all its I of your Company. previous records. Before I provide update on the performance this fiscal – allow me a recap on the journey so far, from when I took over the reins of your Company in October 2016. The last few years, prior to this, had been extremely challenging for your Company, due to adverse changes in business environment and your Company had recorded a massive loss. I had taken over mid fiscal and the first order of the day was to review internal/ operational issues and strategize to curb losses, which was successfully effected when the loss was brought down to almost 50% of that recorded the previous year i.e. FY 2015-16. The next fiscal, was a watershed year for your Company, in terms of multi-sectoral growth and turning profitable, posting a Profit After Tax of `58.02 Crore after two years of consecutive losses. Subsequently, over the last three years, the Company has developed a robust three dimensional Corporate Plan for growth, based on your Company’s core competencies and the opportunities provided by The trail of achievements does not end there, as with the current business environment that has ensured immense pride, let me congratulate each one of you, sustained and profitable growth year after year. whose efforts have led your Company to record a I am proud to share that your Company has set a remarkable Profit Before Tax of ₹87.03 Crore in the FY new precedent - that of breaking its own record year 2019-20 and register Operating Profit for the first time, after year and this year is no exception. It gives me after FY 2012-13. 6 47th ANNUAL REPORT

Enhanced profitability. 700.00 647.51 Maximizing the potential of our three business 600.00 479.20 verticals. 500.00 480.37 561.17 470.17 349.09 400.00 Creating a more efficient and productive 327.85 445.73

re 342.93 organization through decentralization of resources o 300.00 317.28 to fortify our site and engineering offices and C r 200.00 assign greater profit responsibility on them. NR I 100.00 44.02 87.03 i n Strategic planning and dedicated efforts have secured - 9.97 for your Company, a rejuvenated performance during -100.00 -77.35 the fiscal, by registering ₹647.51 Crore as Revenue from -200.00 -174.70 Operations, which is highest in last seven financial years (FY2012-13 to FY2019-20). The remarkable -300.00 2015-16 2016-17* 2017-18* 2018-19 2019-20 figure of Profit Before Tax of ₹87.03 Crore, clearly speaks about our efforts and its outcome. Revenue from Operations 327.85 349.09 480.37 479.20 647.51 Turnover 317.28 342.93 445.73 470.17 561.17 Furthermore, the Networth of the Company for PBT -174.70 -77.35 44.02 9.97 87.03 the fiscal, at ₹433.49 Crore, is highest in last ten FYs (2010-11 to 2019-20). Consequently, Board has *Restated on implementation of Ind AS proposed to pay a dividend of ₹21.67 Crore to Govt. of India for FY 2019-20. While Metals and Mining sector has remained the mainstay of your Company’s business, your Company The Earnings per Employee of the Company for the has taken concrete measures over the last few years, financial year 2019-20 has also improved by 40.54% as to develop business in the priority sectors of the compared to previous year. Government, to significantly enhance revenue and Apropos Order Booking, your Company is continuing insulate the business from cyclicity of the steel sector. in its journey of excellence, where strategic planning This year, we have focused on strategies to sustain the has garnered a 150% increase over last year’s record inroads made in diversification and build business with a stupendous ₹4929.87 Crore worth of orders resilience, particularly, in terms of re-engineering our booked across the 3 business verticals. policies and procedures for continuous improvement Your Company has been successful in procuring as set forth below: business by leveraging existing capabilities to offer Purchase and Disposal Procedure i.e. PDP-2019 services in diversified sectors i.e., - A number of changes have been incorporated in De-SOx and De-NOx through FGD projects in the new approved PDP 2019 to keep pace with the thermal power stations, changing times, the market realities and dynamics of our working environment. Zero Liquid Discharge (ZLD), Central Ambient Air Quality Monitoring Station, HR Document - which forms the basis for defining the standard manpower strength at various grades Energy Efficiency and Environmental studies has been introduced and put into effect. Your Company is proud to be associated in the Recruitment Policy has also been updated, as per following projects of National importance and Priority the long term vision of the Company. Sectors of GoI: Your Company has well defined strategic growth Human Space Flight Centre (HSFC)-ISRO, ambitions that guide us in planning the future and Chitradurga - Environment Clearance and the continuous improvement initiatives signify your Consent for Establishment (CFE) Company’s commitment to remain a perpetual value Setting-up of Solvent Extraction Plant for Heavy creating organization for all its stakeholders. Water Board. Physical and Financial Performance Development of various Mines of UCIL. This fiscal, your Company’s focused and vigorous Long Distance Natural Gas Pipeline and City gas approach to implementing its growth plans has been Distribution projects in Oil & Gas sector across through multi pronged measures to establish and India, including North East Gas Grid Project for assure: Indradhanush Gas Grid Ltd. 7 MECON MECON Limited

Environment Management Corporate Social Responsibility With understanding of its responsibility towards the In the area of Corporate Social Responsibility (CSR), environment and society, your Company also focuses your Company has been making tangible contributions on other tangibles like, value addition in terms of every year. Though your Company’s CSR budget may improved efficiency and environmental protection be very small in comparison to those of giant PSUs but etc. At a time of challenges posed by changing climate, the impact created is acknowledged on all platforms. your Company has endeavored to adapt and rethink Your Company’s endeavours have transformed lives the energy efficiency, safety, resource conservation, by catering to the basic needs of the society, especially zero discharge and waste control measures, for existing in slum and backward areas, in & around Ranchi as as well as future projects assigned to it. Your Company well as Naxal affected adopted villages of Ranchi and gives particular attention to efficient use of materials, Khunti districts, which are among the GoI identified energy and environmental management during the Aspirational districts of Jharkhand. This includes project implementation phase and has put forward organization of one Cataract operation and 87 Health significant engineering efforts to achieve zero discharge camps, benefiting 3860 patients as well. from production plants being engineered by them During FY 2019-20, your Company, in addition to the Your Company has been retained as Environmental perennial CSR programs for women empowerment Consultant for challenging environmental projects of and education, has extensively worked towards the various clients. Significant environmental engineering Government’s Annual theme of “School Education, assignments carried out during the year include: Healthcare & Nutrition”. Accordingly, the “Healthcare Setting up of Continuous Ambient Air Quality Supplementation & Nutrition- POSHAN Programmes” Monitoring Stations (CAAQMS) at 58 locations are being carried out in a planned manner in adopted in six zones at 36 cities in 21 states & 4 union villages of Ranchi and Khunti districts. During the year, territories all over India on behalf of CPCB for 234 children have been beneficiaries of this program. mapping the real time ambient air quality data. Steps towards Good Governance Key member of Fact Finding Committee constituted by JSPCB to find the cause & effect In your Company, Corporate Governance is practiced analysis of Red Mud Pond Boundary wall breach by adhering to the highest standards of conduct in at M/s Hindalco, Muri and suggest the time bound managing our business and serving our clients. Special restoration plan. emphasis is laid on enhancing your Company’s viability, competitiveness and longevity, by aligning commercial Human Resource goals with honest, transparent ways of doing business Your Company’s strength lies in its competent and throughout the organization. highly skilled human resource. So, in order to have Like the past years, this year also your Company scored an edge over the competitors, the most effective way ‘Excellent’ rating in compliance to Guidelines on is to sharpen the skills and competence of our human Corporate Governance issued by Government of India, resource. Accordingly, your Company has provided which maintains our record of Excellent rating every wide variety of training to an appreciable number year since inception. of executives, through state-of-the-art programs, including those offered by ‘Centre of Excellence’ Acknowledgement institutes through DPE. These achievements would not have been possible The amalgamation of skill with technology results without the concerted efforts of all stakeholders and in sustainable growth of the Company. Therefore, I am especially thankful to each and every employee, it is always endeavored that employees engage in whose dedication has fueled our endeavor to place the enhancement and reinforcement of technological skills Company back on trajectory of sustained growth. and competencies. I also extend my sincere gratitude to the members of Along with technical capabilities augmentation, the Board, for their judicious counsel and impeccable training in soft skills is being given equal importance commitment to the vision and values of the Company. to bring about an overall development of our future leaders to enable them to unleash potential for At last, I most humbly acknowledge the confidence necessary business impact. and trust, bestowed upon the Company, by our valued clients and the unshakable support, extended by the We continue to focus on our people and their Ministry of Steel (Government of India), which are truly development, as it is they who will lead the Company critical to the sustainable growth of your Company. through this challenging environment and ensure that sustained value creation is achieved. Jai Hind!

8 47th ANNUAL REPORT BOARD REPORT

Dear Members, ¾¾ 4,506 m3 Blast Furnace and associated Stoves is nearing mechanical completion. our Directors have the pleasure in presenting ¾ Y47thAnnual Report on the operations of the ¾ Latest state-of-the-art BOF Shop and Thin Company and the Statements of Accounts for the Slab Caster-Tunnel furnace-Hot strip mill are Financial Year ended on 31st March, 2020. nearing completion. ¾¾ Erection of the latest state-of-the-art 2x40MW The Report of the Statutory Auditors and the Comments CO gas-based Power Blowing Stations on the Accounts of the Company by the Comptroller completed. and Auditor General of India (C&AG) are annexed to ¾¾ Erection & testing of the Oxygen Plant is over this Report. and it is ready for commissioning. 1.0 PERFORMANCE HIGHLIGHTS ¾¾ Erection work for 50,00,000 m3 earthen Your Company has been able to sustain its profitability reservoir to store intake water, RWPH, trend and has achieved its highest ever order booking MDWP is completed. Pre-Commissioning worth more than ₹4,900 crore in the financial year readiness activities are in progress. Integrated trial run of the Intake well and cross country 2019-20. MECON has also consolidated its in-house 3 capabilities in metals sector and endeavored building pipeline to draw 10,000 m /hr is completed. upon its strength through value-added partnerships ¾¾ MRSS has been commissioned. with technology know-how leaders to assimilate and ¾¾ Erection of the Power distribution network is improvise upon existing technology in core sector to completed. provide cutting edge solution to its Clients. Energy ¾¾ Erection of in-plant rail network, siding and has emerged as sustainable business vertical in the connection to the Indian railway network is company’s operations portfolio. nearing completion. JSW Steel Limited, Vijayanagar Works has Sector-wise major projects completed/under progress entrusted your Company for providing Design, during the year includes Engineering & Consultancy Services for Metals Sector Rebuilding & Capacity Enhancement of their Blast Detailed Engineering & Consultancy services Furnace #3 (4,019 m3 Useful Volume) to become including Project Management Consultancy country’s largest Blast Furnace (5,339 m3 Useful services are being provided by your company for Volume). Engineering has been completed and setting up of 3.0 Mtpa Integrated Steel Plant of awaiting shutdown for execution. NMDC Limited at Nagarnar and following are JSW Steel Limited, Vijayanagar Works has entrusted the major achievements: your Company for providing Consultancy & Engineering Services for Enhancement of Steel Making capacity from 13MTPA to 18MTPA by addition of major technological facilities like New Blast Furnace #5, Lime Calcination Plant, Steel Making Shop #4 along with its auxiliaries and ancillary units including Raw Material Handling & Storage System. The project is under execution.

¾¾ The automated RMH System of the plant which is designed to handle 10.75Mt raw material is nearing completion. The Coal route is commissioned and the other routes are nearing completion. ¾¾ 1st of the 7 m high Eco-friendly Coke oven battery is ready for heating and the 2nd Battery is at completion stage. ¾¾ Erection of the 463.5 m2 Sinter Plant has been completed.

9 MECON MECON Limited

JSW Steel Ltd. Dolvi Works has entrusted your Engineering & Consultancy services for company for providing Consultancy & Detailed installation of their New Pellet Plant #3 (816 m2). Engineering services to implement independent The engineering work is going on as per schedule. SGP for Blast Furnace #1. This project enables JSW JSW Steel Limited, Vijayanagar works has entrusted to handle more slag by simultaneous operation your company for providing Consultancy & of both the tap holes, thereby increasing the Detailed Engineering services for rail loading productivity of their Blast Furnace #1. Engineering facility of pellets to be produced in PP #3. has been completed and the project is under execution. Your company has completed Engineering for New Pellet Plant # 2 (816 m2) of JSW Steel Limited, JSW Steel Limited Dolvi Works has entrusted Dolvi Works within schedule which turns out to your company for providing Consultancy & be the largest Pellet plant in India and equals to Engineering Services for installation of 80 ton per largest pellet plant in the world. The construction hour Coal Pulverization System for their BF #1. activities at site are in progress. The project is under execution. Odisha Sponge Iron & Steel Limited has entrusted JSW Steel Limited Dolvi Works has entrusted your your company for providing assistance for company for providing Consultancy & Detailed selection / ordering on main package vendors of Engineering services for relining of existing Waste 1.2 MTPA Pellet plant, DR plant, IF & caster for Gas Chimney and installation of new temporary their proposed steel plant in Keonjhar district, waste gas chimney at Hot Blast Stoves of Blast Odisha. Furnace #1. The project is under execution. Your company in consortium with Primetals, USA had designed, engineered, manufactured, erected & commissioned Wire Rod Mill-2, at RINL, Visakhapatnam on turnkey basis. The quality product wire rods from this mill are being exported to many countries including USA.

JSW Steel Limited Dolvi Works has entrusted your company for providing Consultancy & Detailed Engineering services for modification of Hot Blast Stoves of Blast Furnace #1. The project is under execution Jindal Saw Ltd. has entrusted your company for providing Detailed Engineering and Consultancy services for installation of fourth (4th) Hot Blast ISRO, Mahendragiri, Tamil Nadu have entrusted Stove in existing 262m3 Mini Blast Furnace your company for Engineering, Procurement, (MBF#2) complex. The project is under execution. Erection, Testing and Commissioning of Structural & Mechanical System (SMS) for Integrated Engine KIC Metaliks has entrusted your company for Testing Facility. Erection and installation have been providing Design, Engineering & Consultancy completed and trial run started for the system. services for Capital Repair of their MBF. The project is under execution. Satish Dhawan Space Centre, SHAR, ISRO, Sriharikota have entrusted your company to Kalyani Steel Ltd., Hospet has entrusted your provide technical Services for augmentation of company for preparation of Critical Study Report existing Solid Propellant Space Booster Plant for Upgradation of their MBF #2. The report has (SPROB). The work has been completed. been prepared and submitted. SDSC, SHAR, ISRO, Sriharikotaha entrusted JSW Steel Limited, Vijayanagar Works has your company for Design & Engineering, Supply, entrusted your Company for providing Design, Erection and Commissioning of Two nos. of Bowl 10 47th ANNUAL REPORT

Cleaning Machine (BCM). Design & Engineering has been completed.

In continuation to the commissioning activities of the BOF Shop of SMS-III at BSP, SAIL first heat was tapped from Converter-3 on 20.02.2020. A Rail Welding Line (RWL) for Long Rails (260 Converter 1 & 2 had already been successfully m) of Capacity 1,100,000 TPA has been installed & commissioned along with the Billet cum bloom successfully commissioned for SAIL / Bhilai Steel caster. Plant, Bhilai. Final Acceptance Certificate (FAC) for RWL has been issued. This RWL is having Alternate CO gas fuel main is installed & future provision for producing 520 m rails. commissioned on 13.02.2020 and Commissioning Certificate issued by SAIL/IISCO Steel Plant on RINL / Viskhapatnam Steel Plant, Visakhapatnam 24.02.2020. Project was executed on TURNKEY assigned your company for carrying out mode in Coke Oven Battery #10 in running Design, Engineering Consultancy Services condition of Battery. for procurement, engineering and Project Management services for setting up the Forged Wheel Plant (FWP) at Rae Bareli for which input round billets will come from Visakhapatnam Steel Plant. The project is under execution.

Ordnance Factory Board, Ambarnath, Maharashtra entrusted your company to supply spare set of Back Up Chucks and Associated parts for their Roughing Mill in the month of June 2019. The spares have been manufactured and dispatched within the specified contractual delivery period. Final Acceptance Certificate (FAC) was issued by SAIL / IISCO Steel Plant on 20.03.2020 for CCP (Pkg-12A) to Siemens VAI (Now Primetals). Performance Guarantee (PG) test for the rebuilding This 4 strand bloom cum beam blank caster is of Coke Oven Battery #7 has been successfully a near net shape caster introduced for the first conducted between 28.01.2020 and 03.02.2020 for time in SAIL during modernization programme. SAIL/Bokaro Steel Plant, Bokaro. PG certificate Your Company rendered Consultancy & Project was issued by BSL Bokaro on 14.03.2020. Project Management Services for this project. was executed on TURNKEY mode. 11 MECON MECON Limited

Oven Plant-1, to be incorporated as a brown field project in available space without affecting normal operation of the plant. The assignment has been completed and reports with recommendations were submitted to Tata Steel BSL in March,2020.

Final Acceptance Certificate (FAC) for the Coke Oven Battery #6 has been issued by SAIL/Rourkela Steel Plant, Rourkela on 20.01.2020. Project was executed on TURNKEY mode.

Non Ferrous Sector Birla Copper Ltd. (Aditya Birla group) awarded your company for the preparation of Feasibility Report for its proposed Greenfield expansion of 5.0 LTPA Copper Smelter and Refinery Plant to be set up adjacent to its existing plant at Dahej, Gujarat. The report has been successfully prepared and submitted. Your company is carrying out the Detailed Engineering & Consultancy services for setting up A major milestone has been achieved for RINL/ an Aluminium Alloy Wire Rod Plant (WRM-3) Visakhapatnam Steel Plant Coke Oven Battery #5 at Angul for NALCO. Presently, the procurement project with commencement of Chimney heating activities are under process. on 05.07.2019 and Battery heating on 24.07.2019. Your company is providing Project Management Your company is also preparing the Detailed Consultancy (PMC) services. Feasibility Report for setting up another Aluminium Alloy Wire Rod Plant (WRM-4) at Angul for NALCO. Presently, the Report has been submitted to Client for their review. Manganese Ore India Ltd. (MOIL) has entrusted your company for the preparation of a Techno- Economic Feasibility Report (TEFR) for setting up a new continuously operating 1500 TPA Electrolytic Grade Manganese Di-Oxide (EMD) Plant at their Dongri Buzurg Mine in Bhandara District of Maharashtra. Such higher quality product shall be used for making Li-Ion batteries whose demand is upcoming to cater to Electric vehicles market in India. The report has been Tata Steel BSL, Angul entrusted your Company submitted to the Client. engineering study of existing facilities and Manganese Ore India Ltd. (MOIL) has awarded recommendation of suitable process / technology the preparation of another TEFR for setting up for desulfurization and ammonia recovery / a 10,000 TPA, high quality EMD Plant at their cracking from the coke oven gas of their Coke 12 47th ANNUAL REPORT

another manganese ore mine in Bhandara District Study report in support of no damage to the of Maharashtra. Your Company is also carrying out environment by current practices adopted by the preparation of a Techno-Economic Feasibility OMC for transportation of material by road and Report (TEFR) for setting up a new continuously measures taken by OMC for Daitari iron ore mine operating Electrolytic Manganese Dioxide (EMD) has been completed. plant at its manganese ore mine in Maharashtra. The report is under preparation. Vedanta Ltd. has entrusted your company the preparation of a Techno-Economic Viability (TEV) Report for the expansion of its Alumina Refinery at Lanjigarh, Odisha from 2.0 MTPA to 6.0 MTPA capacity. The report is under preparation. Mining Sector Preparation of Mining Plan of Gua Ore Mines, Detailed Project Report (DPR) prepared RMD, SAIL for environmental friendly utilization and submitted for setting up Chromite Ore of dumped iron ore fines through reclamation Beneficiation Plant at South Kaliapani for Odisha and sale of fines to external agency as per order of Mining Corporation. Government of India has been completed.

EIA/EMP study for expansion of Sukrangi Chromite Ore Mines in Jajpur district, Odisha for Odisha Mining Corporation has been completed. Hydrology and Hydro-Geological study completed for Suliyari Coal Block located at Singrauli District, Madhya Pradesh of APMDC. Preparation of Mining Plan of Dalli-Jharandalli Mines, BSP, SAIL for utilization of de-silted iron ore fines from tailing pond through sale to external agency as per order of Government of India was completed.

Wildlife Management Plan for Suliyari Coal Block located at Singrauli District, Madhya Pradesh of APMDC has been completed.

13 MECON MECON Limited

Power Sector Installation of 40 kWp Rooftop Solar Power Plant at the Head Quarter of your company has been Bokaro Power Supply Company Limited has successfully completed. entrusted your company for study and preparation of FR to adhere to MOEF norms for flue gas RINL has entrusted your company for carrying emission and specific water consumption limit out DEC & PMC for installation of Turbo Blower in Power Plant. The project has been successfully (TB # 5) unit at Vizag Steel Plant. PAC for Turbo completed. Blower package has been issued. TANGEDCO (Tamil Nadu Generation & Oil & Gas Sector Distribution Corporation) has entrusted your Your Company has completed EPCM services company to conduct the feasibility study, for 30”/24”/18”/12”/8” x 755 km (approx.) preparation of FR, DPR, Tender Specification, Jagdishpur-Haldia Pipeline Project Phase-I (part evaluation & finalization of Techno-Commercial of Urja-Ganga Pipeline project) of M/s GAIL Bids for installation of suitable flue gas (India) Limited. The complete pipeline under desulphurization system in their five thermal power Phase-I (755 KM approx.) of the project has been stations. Out of that, preparation & submission commissioned. of FR for five power plants and DPR for 4 power plants have been successfully completed. Damodar Valley Corporation has entrusted your company for carrying out RLA & Up rating study, preparation of DPR, tender specification, evaluation of techno-commercial bids, finalization of vendor for R&M/ RMU & LE job together with dismantling & re-assembly of the units required for RLA and Up rating study for Hydel Power Station Unit – 1 & 3 (2X20MW) at Maithon. RLA & Up rating study has been completed and draft RLA study report has been issued for Unit # 1 & 3. Damodar Valley Corporation has entrusted your company for carrying out RLA & Up rating Detailed Feasibility Report (DFR) for Development study, preparation of DPR, tender specification, of New Bitumen & Base Oil Terminal at Mumbai evaluation of techno-commercial bids, finalization Refinery area of BPCL has been prepared by of vendor for R&M/ RMU & LE job together with your company. The Final DFR was submitted on dismantling & re-assembly of the units required 25.05.2019. for RLA and Up rating study for Hydel Power Station Unit – 1 (1X40MW) at Panchet. Tender Your company has completed EPCM services specification has been issued. However, tendering for Construction of Bitumen (VG-40) and Inlet process has not started as DPR approval is awaited Receiving Tankages of MRPL, Mangalore. from CEA. Birla Copper Limited has entrusted your company for preparation of study report and technical feasibility report for installation of scrubber in Smelter – 1 and PMR unit respectively at Dahej. The project has been completed successfully. Birla Copper Limited has entrusted your company for providing Detailed Engineering & Consultancy services for installation of scrubber for Smelter – 1 and PMR unit at Dahej, Gujarat. Draft TS for PMR Your company has provided EPCM Services for scrubber system has been issued. Construction of Pet Coke Silos for Truck & Wagon Performance Guarantee Test of Power & Blowing Loading along with associated Conveying System Station (Pkg. 19) under 2.5 MTPA New Stream and Covered Shed for Sulphur Yard of MRPL, Expansion of SAIL-ISP, Burnpur has been Mangalore. Commissioning certificates have been completed successfully. issued. 14 47th ANNUAL REPORT

Hindustan Petroleum Corporation Limited (KKBMPL) Phase-II of M/s GAIL has been (HPCL) had appointed your Company as commissioned in June 2019 Engineering & Project Management Consultant Your company is providing EPMC services for (EPMC) for setting up Petroleum oil & lubricants Gujarat Pipeline Replacement Project Phase-I (HSD, MS,SKO& Ethanol) depot of capacity Part-B of M/s GAIL. Dabka-Dhuvaran Section of 29,000 KL at Meerut, Uttar Pradesh. The schedule this project has been commissioned on 24.07.2019. for Mechanical Completion & Oil Industry Safety Directorate (OISD) audit compliance has been Your company is providing EPMC services for successfully met on 29.10.2019 and MEERUT Gujarat Pipeline Replacement Project Phase-I Depot has been successfully commissioned in the of M/s GAIL (India) Limited. Chokhari-Undera month of January 2020. Section of this project has been commissioned on 27.08.2019. The construction work of Natural Gas pipeline from Baghjan to CGGS Madhuban, Duliajan, Assam (30” OD x 38 Km approx) has been started by your company in the month of September 2019 at Duliajan, Assam. This work was awarded by OIL India Limited for Engineering, Tendering, procurement & construction Management (EPCM). This project comes under the Prime Minister’s vision of reduction in import dependency in energy by 10% by 2021-22.

De-compression unit (DCU) of 450 SCMH capacity is commissioned at Ranchi. Unit is delivering PNG to more than 1000 households in Shyamali Colony, South Office Para.

M/s Hindustan Petroleum Corporation Limited (HPCL) has entrusted your Company the job of M/s ASOI JV (Bangladesh) has entrusted your Engineering & Project Management Consultancy company the job of detail engineering design for Services for Hissar Depot. The work is under Transportation of White Oil Petroleum through execution. Pipeline from Chattogram to Dhaka, Bangladesh. This is biggest foreign assignment of your company in Oil & Gas Sector. The project is under execution. M/s GAIL (India) Limited has entrusted your company with Project Management Consultancy Services for 36”/30’/18”/12” x 1065 Km (Approx.) Bokaro-Angul-Dhamra Pipeline (JHBDPL) Project. The project is under execution. 24” x 141 Km (Approx.) of Auraiya-Phulpur section of Vijaipur-Auraiya-Phulpur Pipeline Project (VAPPL) of M/s GAIL has been commissioned on 29th July 2019. 30” X 95 km (approx.) pipeline Section-I of Kochi-Kootanad Bangalore Mangalore Pipeline

15 MECON MECON Limited

M/s Hindustan Petroleum Corporation Limited The Decompression unit at Sonari Jamshedpur (HPCL) has entrusted your company the job as a Part of CGD Project Jamshedpur has started of EPMC services for Dharmapuri Depot. The commercial operation from 01.11.2019. capacity of this depot shall be 2,09,660 Kl (approx.). The project is under execution. Total 4 numbers of CNG Station at various RO have been constructed. a) 1st CNG station at Khukri RO of IOCL is commissioned on 23.08.2019. b) 2nd CNG station at Madhuban RO of IOCL is commissioned on 23.08.2019. c) 3rd CNG station at Jharisakaldeep of HPCL RO is commissioned on 19.03.2020. Pride Fuel CNG Station (DBS) NH33 Jamshedpur, the first CNG station at Jamshedpur. Commercial th d) 4 CNG Station at Chadha RO of HPCL operation started from 01.11.2019. Unit comprises commissioned on 21.03.2020. stationary cascade (3000 WL), Booster compressor and two CNG Dispensers. Gas is dispensed at 250-260 kg/cm2 to the automobiles (Auto and Cars). DEC and PMC are being provided by your Company.

Hill View CNG Station (DBS) Pardih Jamshedpur, the second CNG station at Jamshedpur commissioned on 20.02.2020. Unit comprises MDPE Network : Around 30 KM of underground stationary cascade (3000 WL), Booster compressor MDPE network of sizes 20mm, 32mm, 63mm, and two CNG Dispensers. Gas is dispensed at 250- 90mm and 125 mm laid in CGD Ranchi were 260 kg/cm2 to the automobiles (Autos and Cars). charged progressively up to 31.03.2020. DEC and PMC are being carried out by your Company.

16 47th ANNUAL REPORT

Infrastructure Sector Your Company has been retained as Environmental Consultant by ISRO for Human Space Flight In Sep 2019, your company bagged another Centre (HSFC) at Chitradurga, Karnataka, which assignment of Providing DE&CS for installing De- is Nation’s first space research centre. Work is dusting System at Coke Screen Building of Amba under progress. River Coke Limited, Dolvi (Maharashtra). The project is under progress. Environmental Clearances have been obtained from MOEF&CC for BARC’s strategic projects like Fuel Fabrication Facility (FFF) at Tarapur, Maharastra, Advanced Reconversion facility (ARCF) and Decontamination Waste Management Facility (DWMF) at Mysore, Karnataka. Environmental Clearance has been obtained for NPCIL’s 2X700 MWe Pressurized Heavy Water Reactors (PHWRs) Project at Kaiga, Karnataka. Environmental Clearance is received in record time from the MOEF&CC for KIOCL’s proposed Ductile Iron Spun Pipe (DISP) Plant and Coke Techno Economic Feasibility Report to provide Oven plant at Mangalore, Karnataka. long distance belt conveying of approximate 25 km between the Gidhmuri Paturia Coal Mine to Prem Your company is providing Project Management Nagar Thermal Power Plant at Surajpur District, Consultancy to ISRO for their Payload Fabrication Chhattisgarh was completed successfully for & Testing Facility (PFTF) Project at 39 acre Chhattisgarh State Power Generation Company Campus, New SAC, Bopal, Ahmadabad. Limited (CSPGCL) in December 2019. In Port Sector, Paradip Port Trust (PPT) had entrusted us for preparation of Feasibility Report for Semi-Mechanization of Coal Transportation from the port’s Plot No. S-5 to MCHP Stackyard for Paradip Port Trust (PPT) submitted.

Your Company has physically and financially completed the Phase I & II of Modernisation of Central Ordnance Depot, Agra & Jabalpur, project that was awarded to us by Director General of Bharat Coking Coal Ltd. awarded the job for Ordnance Services, Ministry of Defence. preparation of DPR for a bridge over River Khudia near Chirkunda under Chanch Victoria of BCCL. The job has been completed and the DPR has been prepared & submitted.

17 MECON MECON Limited

ESIC has approved MECON’s concept plan of 200 Business procurement in the area of Engineering bedded (upgradable to 300 bedded) ESIC Hospital Consultancy & PMC services was ₹359.63 Crore* in alongwith Staff Quarters, Cafeteria including TOR previous year and ₹797.28 Crore* during this financial and attendant stay for the project “Construction year. In Supply / Turnkey projects it was ₹2832.12 of 200 bedded (upgradable to 300 bedded) ESIC Crore* in previous year and ₹4132.59 Crore* during Hospital at Surat, Gujarat. this year.

Your Company is serving a large number of clients in the Public and Private Sectors. Some of the major clients Business Procured (Consultancy) in Public Sector include SAIL, GAIL, UCIL, NMDC, Metal Non-Metal ESIC, NSPCL, JBVNL, MAHAGENCO, Ministry of 800 AYUSH, ISRO, HAL, MRPL, HEC, BARC, HINCOL, APMDCL, NINL, RINL/VSP, KIOCL, HCL, NML, 600 s RINMOIL, SAILMOIL, MIDHANI, BEL, GoJ, RPTPL, e o r r 400 C

PFC, HPCL, BPCL, OPTCL, UPPCL, UPRVUNL, ` n i TANGEDCO, OMDC, MRPL, TVNL, FCRI, IPICOL, 200 NALCO, BPSCL, NLC, NPCIL, WBSEB, WBPDCL, 0 WBSEDCL, BESCOM, OHPC, CMWSSB,BGL, 2015-16 2016-17 2017-18 2018-19 2019-20 APPGCL, IOCL, HPGCL, ONGC, CPCB, KPCL, VPT, KPT, PPT, GGL, IGL, BGL, TNGCL, DVC, MSTC, NHPC, NMPT, IDCOL, IREL, SBI besides Ministry of Power, Govt. of India, the State Electricity Boards in Jharkhand, West Bengal, Madhya Pradesh, Business Procured (Supply) Chhattisgarh, Rajasthan, Tamil Nadu, Uttaranchal, Metal Non-Metal Uttar Pradesh, Odisha. Jindal Group, Bhushan Group, 5000 Tata Group, UML, ESSAR, ESSEL, KIC METALIKS, 4000 AXIS BANK, UML, ULTRATECH, MONNET, BMM, s

e 3000

UGSL, MEL, BRPL, SESA GOA, TML, BIL, MNGL, o r r C

` 2000

TOPWORTH, ADANI, MSPL, IIL, SLR, etc. are some n i of the major clients in the private sector. 1000

0 In addition to above, some of the major clients to whom 2015-16 2016-17 2017-18 2018-19 2019-20 your company has been rendering services during this year include IGGL, BGCL, BGRL, Purba Bharati Gas, Heavy Water Board, HNGPL, CPCB, TNGCL, APGDC, (Note (*) : All figures are inclusive of taxes) GGL, IREL, DVC, NPCIL, Birla Copper, Electrosteels, Tata Metaliks, JSW, etc. The Company is also providing During this fiscal year, SBU wise share in business services to Defense Sector. procurement in Metal, Energy & Infrastructure has been of the order of 82%, 14% and 4% respectively. 2.0 BUSINESS DIVERSIFICATION

MECON has been successful in procuring business SBU wise Business Procured by leveraging existing capabilities to offer services in diversified sectors i.e., De-SOx and De-NOx through 82% FGD projects in thermal power stations, Environmental studies, Oil & Gas – Mid & Downstream, water supply & treatment projects, strategic projects of defence, space and atomic minerals, projects aligned with National Missions & Plans viz. Jal Jeewan Mission, Power for 14% All, IPDS, DDUGJY, Urja Ganga, Swachh Bharat, Sagar 4% Mala, Bharat Mala, Digital India etc. as well as various Metal Energy Infastructure Infrastructure projects. This is to hedge the risks due to cyclic swings in the metals business. 18 47th ANNUAL REPORT

3.0 MANAGEMENT INITIATIVES Uranium Project for Uranium Corporation of India Ltd., Jaduguda. Management priorities have always been shaped by the imperatives of finding innovative solutions for Engineering, Procurement and Construction its esteemed clients and become their value partners Management (EPCM) services including Detail in their operation and expansion projects. This has Engineering, Procurement Services and Project helped expanding new client base who have reposed Management services for setting up of 2 lakh faith in your Company to be their consultant in their TPA capacity Ductile Iron Spun Pipe Plant under upcoming projects. Management has taken initiatives Forward Integration and 1.79 lakh TPA capacity to introduce new offerings to harness business Non-Recovery type Coke Oven Plant under opportunities emanating from the National Steel Policy Backward Integration to the existing Blast Furnace 2017, National Priorities as well as current market Unit of KIOCL Limited, Bangalore. needs viz. slurry transportation, energy efficiency, Executing Agency for installation of Ion O&M services, centralised inspection services etc. Exchange System for treatment of Mine Water of With the changing business paradigm, your Company Tummalapalle Plant of Uranium Corporation of has endeavored in partnering with global technology India Ltd. leaders to provide customized solutions to Clients and Detailed Engineering & Project Management to improve their business efficiency. Consultancy services for setting up of Solvent 4.0 MOU WITH MINISTRY OF STEEL ON Extraction Plant (SXP) at Heavy Water Plant, PERFORMANCE Tuticorin, Tamil Nadu for Heavy Water Board, Mumbai. Like previous years, your Company has signed a MoU with the Ministry of Steel for the F.Y. 2019-20. Executing Agency for Environmental Compliance related to Tummalapalle Plant of Uranium 5.0 ISO 9001:2015 CERTIFICATION Corporation of India Ltd. Your Company has successfully migrated to ISO Consultancy services for establishment of One 850 9001:2015 Standards from ISO 9001:2008 standards. Tpd Air Separation Plant (ASP) unit on captive The certificate has been awarded by M/s TÜV basis at RINL/Visakhapatnam Steel Plant, NORD. The scope of Company’s certification includes Visakhapatnam. Consultancy, Design & Engineering, Procurement Design, Engineering, Supervision of Construction, of Plant & Equipment, Inspection, Construction & Erection & Commissioning activities of Rare Earth Project Management Services and Erection of Turnkey Permanent Magnet (REPM) Plant of Indian Rare Projects. The surveillance audit by TÜV has been Earths Ltd., Mumbai. conducted during November – December 2019 and Company’s QMS has been certified for ISO 9001:2015 etailed Engineering & Consultancy services for and validated upto 29.01.2021. upgradation of 350m3 Blast Furnace of Electrosteel Steels Ltd. 6.0 INDIAN ASSIGNMENTS Consultancy services for Turbo Blower installation Your company has procured following major work in MBF #1 of Tata Metaliks Ltd., Kharagpur. orders during 2019-20: Detailed Engineering & Consultancy services Metals Sector for Upgradation / Modification of Scrubber of Executing Agency for Development of Chitrial Smelter-1 of Birla Copper, Dahej. Uranium Project for Uranium Corporation of Environment Clearance from MoEFCC for Six India Ltd., Jaduguda. Schemes within DSP’s existing Project Boundary Executing Agency for Development of under 2.45 Mtpa Hot Metal Production Project of Kanchankayi Uranium Project for Uranium SAIL/Durgapur Steel Plant, Durgapur. Corporation of India Ltd., Jaduguda. Preparation of Detailed Project Report (DPR) Executing Agency for Development of Jajwal for Development of Begunia Underground Coal Uranium Project for Uranium Corporation of Project of SAIL Ramnagore Colliery. India Ltd., Jaduguda. Supply of Back-up Roll Chuck & Associated Executing Agency for Development of Gogi Parts for Roughing Mill for Ordnance Factory, Ambarnath. 19 MECON MECON Limited

Energy Sector Distribution (CGD) Network in Varanasi, Cuttack, Bhubneshwar, Ranchi, Jamshedpur and Patna for Project Management Consultancy (PMC) services GAIL (India) Ltd. for North East Gas Grid (NEGG) Project under Indradhanush Gas Grid Ltd., Assam. Engineering & Project Management Consultancy (EPMC) services for City Gas Distribution (CGD) Engineering & Project Management Consultancy Projects in Srikakulam, Vishakhapatnam and (EPMC) services for Barauni Guwahati section of Vizianagaram GA for Indian Oil Corporation Jagdishpur - Haldia - Bokaro–Dhamra Pipeline Ltd., Noida. (JHBDPL) project for GAIL (India) Ltd. Engineering & Project Management Consultancy Engineering & Project Management Consultancy (EPMC) services for Development of City Gas (EPMC) services for Development of City Distribution (CGD) Network in Haridwar GA for Gas Distribution (CGD) Network in Five GAs a period of 3 years for Haridwar Natural Gas Pvt. (Dhanbad & Giridih GA, Dakshina Kannada GA, Ltd. Sundargarh & Jharsuguda GA, Ganjam, Nayagarh & Puri GA and Dehradun) for GAIL Gas Ltd., Engineering & Project Management Consultancy Noida. (EPMC) services for Development of City Gas Engineering & Project Management Consultancy Distribution (CGD) network in Sonipat, Meerut & (EPMC) services for Development of City Gas Devas (Phase-II) for GAIL Gas Ltd. Distribution (CGD) Network Project in Kolkata Engineering & Project Management Consultancy GA for Bengal Gas Co. Ltd. (EPMC) services for Development of City Gas Engineering & Project Management Consultancy Distribution (CGD) Project in Gomati Dist. (GA (EPMC) services for Srikakulam-Angul Natural 74) and rest of West Tripura Dist. (GA 75) for Gas Pipeline Project for GAIL (India) Ltd., Noida. Tripura Natural Gas Co. Ltd., Agartala.

Engineering & Project Management Consultancy Engineering & Project Management Consultancy (EPMC) services for Development of City Gas (EPMC) services for Kakinada-Srikakulam Distribution (CGD) Network in 04 nos. of GA’s Natural Gas Pipeline Project for Andhra Pradesh i.e. (a) Saraikela and Kharsawan GA (b) West Gas Distribution Corporation Ltd. Singhbhum GA (c) Raisen, Shajapur and Sehore Engineering & Project Management Consultancy GA & (d) Mirzapur, Chandauli & Sonbhadra for (EPMC) services for Development of City Gas GAIL Gas Ltd., Noida. Distribution (CGD) Network of Green Gas Ltd. Project Management Consultancy (PMC) services for Development of City Gas Distribution (CGD) Engineering & Project Management Consultancy Network in the Geographical Areas (a) Angul & (EPMC) services for Development of City Gas Dhenkanal (b) Bargarh, Debagarh & Sambalpur Distribution (CGD) network in TTZ for Phase-II (c) Jajpur & Kendujhar and (d) Jagatsinghpur & of GAIL Gas Ltd. Kendrapara Districts (Odisha) for Bharat Gas RLA and Uprating Study of Unit # 1 & 3, Resources Ltd., Mumbai. preparation of DPR, TS, Finalisation of Vendor for Engineering & Project Management Consultancy R&M / RMU & LE of Maithon Hydel Power Station (EPMC) services for Barmer-Palanpur Petroleum for Damodar Valley Corporation, Kolkata. Product Pipeline Project for Hindustan Petroleum Engineering & Project Management Consultancy Corporation Ltd., Mumbai. (EPMC) services for 8’’ dia 10 kms Natural Engineering & Project Management Consultancy Gas Pipeline Project in Anand Nagar to Dukli (EPMC) services for Development of City to Maharajganj Terminal (ADMPL) for GAIL Gas Distribution (CGD) Network in Cachar, (India) Ltd., Agartala. Hailakandi & Karimganj Districts (GA-2) and Kamrup & Kamrup Metropolitan Districts (GA-3) Engineering & Project Management Consultancy for Purba Bharati Gas Private Ltd., Guwahati. (EPMC) services including report on Detailed Feasibility Report (DFR) for City Gas Distribution Engineering & Project Management Consultancy (CGD) Project of Kolkata GA before incorporation (EPMC) services for development of City Gas of GV for Bengal Gas Company Ltd., Kolkata. 20 47th ANNUAL REPORT

Detailed Market Survey and preparation of Sea Water Reverse Osmosis Desalination Plant at Detailed Feasibility Report (DFR) for development Narippaiyur in Ramanathapuram District, Tamil of City Gas Distribution (CGD) network in the Nadu including the O&M of the plant and allied 4GAs/3 New CGD project of GAIL Gas Ltd. units for 5 years for Tamil Nadu Water Supply and Drainage Board, Madurai. Engineering & Project Management Consultancy (EPMC) services for installation of LNG Storage Detailed Feasibility Study of proposed Relocation & Regasification Terminal along with LNG / CNG of existing RRLS for Pet Coke Evacuation and Dispensing Facilities for Mahanagar Gas Ltd., Modernisation to Automated RRLS for Indian Oil Mumbai. Corporation Ltd., Vadodara. Preparation of EIA / EMP report for AAFR Spent Project Management Consultancy (PMC) Fuel Storage Facility of RR site for Nuclear Power services for Ongoing & Upcoming works of Birsa Corporation of India Ltd. Agricultural University, Kanke, Ranchi. Consultancy services for Fire detection & Fire 7.0 FOREIGN ASSIGNMENTS Suppression measures of PTPP, Parichha, Jhansi for Uttar Pradesh Rajya Vidyut Utpadan Nigam Overseas assignment bagged by your company is Ltd., Parichha. highlighted below: Consultancy Services for Fire Detection and Preparation of Bankable TEV report for the Steel Fire Suppression Measures for ‘A’ TPS & ‘B’ TPS Plant Facilities for United Impex, South Africa. Anpara for Uttar Pradesh Rajya Vidyut Utpadan Preparation of Health Study report for the Steel Nigam Ltd. Plant Facilities of GJ Steel, Thailand. Consultancy Services for Fire Detection and Fire Preparation of Health Study report for the Steel Suppression Measures 5x200 MW Power Plant at Plant Facilities of G Steel Public Company Ltd., Obra for Uttar Pradesh Rajya Vidyut Utpadan Thailand. Nigam Ltd., Obra. Preparation of Asset Valuation report for the Steel Infrastructure Sector / Other Engineering Plant Facilities of Premium Steel & Mines Ltd., Executing Agency for execution of Projects / Warri, Nigeria. Works in GGV Campus for Guru Ghasidas Preparation of Feasibility Report for extension of Vishwavidyalaya, Bilaspur. Iron Ore Storage yard for Bahrain Steel Company Engineering & Project Management Consultancy (BSCC), Bahrain. (EPMC) services for establishment of 58 nos. of 8.0 FUTURE BUSINESS VISION CAAQMS all over India for Central Pollution Control Board, New Delhi. The future business vision of MECON as depicted in its Corporate Plan targets 3-4x enhancement in Revenue Engineering & Project Management Consultancy from Operation by FY 2023-24. For sustained growth (EPMC) services for construction of ETP for of the organization to create value for its stakeholders, remediation of Hexavalent Chromium from Mines the fundamental strategic action plan shall evolve Effluent & Surface Run off of Sukarangi Chromite around enhancing procurement of new jobs, effectively Mines in district of Jajpur, Odisha for Odisha translating these new jobs along with the balance Mining Corporation Ltd. existing jobs into turnover / revenue from operation Consultancy services for installation of Tailing with sustained profitability and also effective realization Pond including Slurry Handling System and of trade receivables from the clients. Effluent Treatment Plant at South Kaliapani in the District of Jajpur, Odisha for Odisha Mining As per Company’s Corporate Plan, Three-Dimensional Corporation Ltd. business strategy has been formulated for the organization, i.e, strengthening the core sector of Consultancy services to conduct Demand Study, metals & mining, leveraging existing capabilities to Prefeasibility studies including Environmental offer services in diversified sectors and Expanding geo- Feasibility, DPR, Detailed Engineering (including strategic reach with focus on APAC & MENA regions processing for sanction) & Bid Documents for the through participation in major global business events / installation of 4.00 MLD capacity containerized seminars / tech-fairs etc. 21 MECON MECON Limited

9.0 FINANCIAL RESULTS The extract of Annual Return for the period under review, is annexed as Appendix- I. The financial highlight for the period under review is as under:

Particulars 2019-20 2018-19 Material changes and commitment, if any, affecting the NIL NIL financial position which has occurred between the end of financial year to which the financial statements relate and the date of the report. The amount, if any which is proposed to carry to any reserve. Opening Balance 30,032.11 16,570.23 Addition during the year 6,900.43 1,374.01 Adjustment due to implementation of Ind AS - 13,485.57 Utilized / Reversed during the year (-)1,122.24 (-)1,397.70 Closing Balance 35,810.30 30,032.11 Particulars of loans, guarantees or investments under # 519.52 # 519.52 Section 186 of the Companies Act, 2013. Particulars of contracts or arrangements with related party NIL NIL referred under section 188(1) in Form AOC-2. # Represents the investment (Gross) made by the Company. 11.0 EARNING PER EMPLOYEE TURNOVER Operating Turnover per employee per year is as follows: 600 e OPERATING TURNOVER PER r 500

7 EMPLOYEE 7 7 Cr o

400 1 3 1 ` 5 300 30 9 n i 200 25 561 . 470 . 100 445 . 0 342 . 20 La k h 15 30.54 ` 27.66

2016-17 2017-18 2018-19 2019-20

n 23.46

I 10 15.99 Year 5 0 2016-17 2017-18 2018-19 2019-20 10.0 DIVIDEND Year Considering the financial position, CAPEX, future business expansion needs, etc., your Directors have 12.0 RESEARCH & DEVELOPMENT recommended ₹2,167.43 lakh as dividend on Equity Share Capital for the Financial Year 2019-20. Indian steel industry is growing fast and is currently the second largest producer in the world with production 10.1 CUMULATIVE DIVIDEND & TAX PAID capacity reaching to142.2Mt in 2019-2020. It is due Your company which has paid up capital of ₹4,013.84 to technological obsolescence, lack of automation lakh (previous year ₹4,013.84 lakh) including Bonus & control and availability of inferior quality of raw Shares worth ₹40.31 lakh, has paid cumulative dividend material which triggers for research and development. including tax (Equity & Preference) of ₹9,102.11 To improve the technological face of the existing plants lakh till 2018-19 and have recommended dividend of and also to sustain the projected high growth rate, there ₹2,167.43 lakh on Equity Share Capital for 2018-19. The is a massive need for R&D programmes in the iron and cumulative income tax to the exchequer amounting to steel sector. ₹49,204.14 lakh has been paid / provided till 2019-20.

22 47th ANNUAL REPORT

R&D in your Company plays a vital role in the Down Force innovation process either in technology development Welding Speed with specific technology solutions or specify the major Rotational Speed technology areas in the field of iron ore beneficiation, FSW Tool coal washery, agglomeration, steel making, energy saving, environment etc. to minimize specific consumption, cost of production vis-a-vis reduction of import of high grade steel. Top Sheet Bottom Sheet Stir Zone Backing Bar R&D division is also carrying out other projects pertaining to DRDO, MOEF, DST, Ministry of Mines Friction Stir Welding (FSW) process. etc in addition to steel sector. The major focus of Patents under process your Company’s R&D activities relates to incremental technology development to address the present and Till 31.03.2020, your Company has filed eleven (11) short term needs of various production units of steel patent applications with Indian Patent Office which are plants with association of other departments of the pending at different levels. Company. Recognition of MECON R&D The R&D of your Company is recognised by the Your Company’s R&D is associated with the platform, Department of Scientific & Industrial Research (DSIR), “Steel Research & Technology Mission of India” Government of India and the recognition is valid for (SRTMI), “IMPRINT” and “Innovation Cell” to carry three years upto 31.03.2022. out R&D programs of national importance. 13.0 CONSERVATION OF ENERGY AND Ongoing Projects TECHNOLOGY ABSORPTION 13.1 Conservation of Energy Development of procedure for joining next generation high temperature material to be used Efforts are being undertaken to promote steel plant for supercritical / ultra supercritical power plant by configuration utilizing state-of-the art energy efficient Friction Stir Welding. technologies. On an average, iron & steel plants spend about 20-40% of their total manufacturing cost to meet Your Company is working on a unique technology their energy demands. in the area of Friction Stir Welding to be used for Over the years, your company has suggested a supercritical / ultra supercritical power plants. This number of established energy saving measures / technology will enable thermal power plant to operate technologies to various steel projects which have at higher pressure & temperature. If developed either been commissioned or are in advanced stage of successfully, the technology will enable online welding commissioning or in planning stage. These are expected when plant will be in operation without any shut down. to result in considerable saving in water consumption This technique will improve operational efficiency of by promoting dry based technologies, saving in plants with reduction in cost of power generation. imported coking coal by promoting high usage of PCI (180-200 kg/thm) besides various other measures to This is a collaborative project with Jadavpur University. reduce electricity consumption and recover waste The project is funded by Ministry of Steel from Plan energy. The reduction in energy not only results in Fund lowering environmental foot print, but also cut down on manufacturing cost. The various area of energy saving measures during 2019-20 are as summarized below: ¾¾ Pulverised coal injection : For reducing coke rate in the blast furnace, saving large amount of energy consumed in coke making, reducing the size of coke ovens, thereby emissions and maintenance costs. ¾¾ Top recovery turbine (wet type) : Modern blast

23 MECON MECON Limited

furnaces invariably are provided with Top recovery Rooftop Solar PV based power generation system turbine with high top pressure operation. It is at its Head Office at Ranchi. In the first phase, a very effective source of energy saving measure installation of 20 kWp rooftop Solar PV system in the blast furnace which utilizes the pressure has been completed on 30.01.2017 and has been energy of the blast furnace top gas to generate running successfully since then. In the second electric power. phase, installation of another 20 kWp rooftop Solar PV system has been completed on 12.10.2018 ¾¾ Waste gas heat recovery system : It increases the and since then it is running successfully. Under temperature of BF / mixed gas and combustion air phase-3, installation of the 40 kWp rooftop solar utilizing the sensible heat of the waste gas of stoves PV system has been completed on 21.02.2020 leading to high hot blast temperature, thereby aid i.e. in the Financial Year 2019-20and the same in saving of precious metallurgical coke in BF. is under operation since then. Balance 60 kWp ¾¾ Adoption of VVVF drives : It helps in better process rooftop Solar PV system is under implementation control and reduction in energy consumption. stage. With implementation of all the four phases, Modern high capacity pellet plants of 816 m2 grate involving 140 kWp, at MECON Head Office, total area each, as being engineered in JSW, Dolvi and electrical energy generation from Solar will be Toranagallu, are equipped with extensive VVVF around 200,000 kWh, annually which will result in drives in the process fans, mixer, balling disc, etc. a total saving of around Rs. 13.5 Lakh per annum VVVF drive has also been adopted in iron ore wet due to reduction of electricity drawal from the grinding ball mill to optimize power consumption State grid. for operation with hard / soft ore. ¾¾ Initiatives undertaken for installation of smart ¾¾ Zero Power Furnace (ZPF) : In this process, steel energy meters at various locations of your is produced using only chemical and sensible heat company’s township at Shyamali, Ranchi in a energy of the molten hot metal in place of electrical phased manner. energy to ensure higher yield and productivity and 13.2 Technology Absorption low capital investment as compared to BOF. Upto 90% of hot metal can be charged. The existing The detailed information on efforts made and benefits EAFs through revamping, technology upgradation derived like products improvement, cost reduction, and capacity augmentation, can be converted into product development or import substitution from ZPFs as has been proposed in SMS-I of JSW-BPSL technology absorption along with technology imported Plant in Jharsuguda, Odisha. and expenditure incurred on R&D as per Section 134(3) of the Companies Act, 2013 read with Rule 8 ¾¾ Dry GCP in place of wet GCP in steel making : of Companies (Accounts) Rules 2014 is enclosed at Dry GCP as compared to conventional wet GCP Annexure-I to this Report. in SMS-4 of JSW and in other latest steel project, is being proposed to ensure large reduction in 14.0 FOREIGN EXCHANGE EARNINGS AND specific water consumption. It also ensures zero OUTGO liquid discharge as compared to handling of large Your Company has earned ₹423.40 lakh Foreign amount of polluted water generated in wet type Exchange during the year 2019-20. The expenditure in process. Besides energy recovery in dry process is Foreign Exchange remitted / actually spent during the much higher than wet process. year is ₹125.58 lakh as per details given below. Electrical Particulars (₹ in Lakh) ¾¾ Implementation of variable frequency drives for Professional & Consultation Fees NIL ID fan, FD fan, CWP, etc. in the power & blowing station of NISP, Nagarnar in order to consume Other matters 125.58 power that is commensurate with the coupled Total 125.58 pump / fan requirement. 15.0 HUMAN RESOURCE DEVELOPMENT ¾ ¾ Implementation of the concept concerning In a knowledge-based organization, Services, Processes SCADA operated Solar inverters to control and and Business Models can be copied, but to have monitor solar generation in Project Seabird for competitive advantage, the organizational competence Indian Navy. i.e. the Human Capital needs to be unique in nature. In ¾¾ To maximise use of renewable source of energy, your Company, developing and sustaining a competent your company is committed to set up 140 kWp and highly responsive workforce with adequate domain

24 47th ANNUAL REPORT expertise, by constantly upgrading their knowledge and The Company continued to have peaceful and cordial skills has always been Management’s topmost priority. relations with the employees and most of the issues Focus is laid on acquiring new skills and sharpening were resolved through interactions and dialogue with existing ones, which leads to better performance, the representatives of Non-Executive and Executive increases productivity and evolves our employees as employees. Liaison with other associated external better leaders. agencies was also maintained cordially and on regular basis. To transform our company into a learning organization and encourage a culture of continual development 18.0 ACTIVITIES / STEPS TAKEN FOR THE amongst employees, apart from conducting regular WELFARE OF SC/STs IN THE COMPANY. trainings on technical, skill related and soft skill, In addition to its corporate and business objectives, based on Training Need Analysis and Organizational the Company is fully aware of its social responsibilities Requirement, more focus was laid upon latest for development and welfare of members of Scheduled Technological Advancements and developing Caste / Scheduled Tribe Communities. The strength Leadership Effectiveness. Along with achieving the and number of employees of SC / ST category presently MoU target of 5% training of Executives at Center of employed in your Company is indicated below: Excellences, Leadership Development Program for Women Executives and Web- based training programs, SC ST PWD Management has also achieved 1595 Man days of training and development (Technology – 614 Mandays, Skill related – 631 Man days and Soft Skill – 350 Man days) as against the target of 1300 Man days fixed for No % No % No %

this financial year. Cat./ Group March, 2020 March, To facilitate holistic development and increase Manpower as on 31st 31st as on Manpower productivity, employee engagement activities such as Health Awareness Programs, Quiz competitions, A 1079 223 20.7 63 5.8 6 0.6 Debate competitions, Retirement Planning, etc., were B 47 4 8.5 17 36.2 0 0 also organized on regular basis. C 91 16 17.6 43 47.3 5 5.5 16.0 PERSONNEL & WELFARE Total 1217 243 19.9 123 10.1 11 0.9 Employees’ strength of your Company at the end of the The Company has adopted adequate measures for year i.e., as on 31.03.2020 was 1217. Out of the total safeguarding their interests and welfare, such as strength of 1217, 243 belong to SC, 123 belong to ST & promotion as per general trend, power regarding 11 belong to PWD category. Out of the total strength of human rights, equality and impartiality in all spheres 1217 employees, 122 are female employees. of activities and providing abundant opportunities for 16.1 Sexual Harassment of women at workplace self development through sports, cultural, educational (Prevention, Protection and Redressal Act, and recreational facilities. Employees belonging to 2013) Scheduled Caste / Scheduled Tribe category and their families residing in Shyamali Township enjoy all the Number of Number of cases facilities as available to others. In order to implement Cases filed disposed. the Government of India Directives and Post-based Nil Nil Rosters with regard to recruitment and promotion of SCs/ STs, SC/ST Cell has been formed with General 16.2 As per DPE Guidelines, Women in Public Sector Manager I/c (HR) as Liaison Officer. The SC/ST Cell (WIPS) Cell was established in your company in maintains proper record regarding recruitment and November, 2015 for development of women employees promotion and statistics of SC/ST employees and and for promoting their interactions with women furnishes reports to the Ministry of Steel on regular employees of other public sector units. basis. The Company has made consistent efforts to 17.0 INDUSTRIAL RELATIONS accommodate SC/ST candidates in all recruitments in MECON as well as in promotion to the next higher The Company focused on employee relationship and grade as per Government Directive. all employee related matters were addressed leading to greater satisfaction of the employees. The work All possible steps are taken to fill up the post in reserved atmosphere remained healthy and harmonious and category as per Government Directives issued from this helped the Company to achieve better productivity. time to time.

25 MECON MECON Limited

19.0 CORPORATE SOCIAL RESPONSIBILITY in their day to day official work. Competitions of AND SUSTAINABILITY DEVELOPMENT various natures were organized at Head Office and (CSR&SD) other offices of the Company during the “Hindi Pakhwara”. As provided under Section 135 read with Schedule – VII to the Companies Act, 2013 your Company has ¾¾ In- House magazine ‘MECON Darpan’ has been carried out CSR activities, mainly focused on Nutrition, published from MECON Delhi Office during Sanitation (Swachh Bharat Abhiyan), Healthcare, Hindi Pakhawara. This magazine provides a Drinking Water, Education, Skill development & platform for employees for creative writing in Livelihood, Projects for Divyangs, Social Welfare, Technical & Social fields in Hindi. Contribution to PM CARES Fund, Rural development, ¾¾ “Two-days Natkotsava” was also organised on etc. out of carried over fund from FY 2018-19 and fund 18th& 19th January, 2020 at MECON Community allocated for FY 2019-20. The details are enclosed vide Hall by a theatre group from Delhi and by Appendix – II. Company’s employees. 20.0 OFFICIAL LANGUAGE POLICY (USE OF ¾¾ Obligatory Hindi Training of Non-Hindi speaking RAJBHASHA) personnel of the company (June -November, 2019 Session – Prabodh, Praveen & Pragya classess) Your Company is effectively implementing the also organised by Rajbhasha Vibhag in which 10 Official Language Policy of the Government of India employees have attended. in its official work. It is also making all out efforts to achieve the targets fixed in the Annual Programme 21.0 VIGILANCE ACTIVITIES issued by Rajbhasha Vibhag, Ministry of Home Affairs, The Vigilance set up of the Company is functioning Government of India. For this purpose, there is an under Shri Upkar Kumar Kedia, ITS, CVO, MECON Official Language Implementation Committee under (Full Time) who took charge on 30.10.2017. CVO of the Chairmanship of CMD. Hindi workshops are being the Company provides a link between the organization organised regularly for the employees. Your Company and the Administrative Ministry, CVC and CBI and is an important member of Town Official Language also acts as a special assistant / advisor to CMD and Implementation Committee (TOLIP), Ranchi and reports directly to him in all matters pertaining to actively participates in all the programmes of TOLIP. vigilance. Joint Director (Rajbhasha), Ministry of Steel, Govt. of India inspected the progressive use of Hindi at our Efforts are on to continuously enhance transparency Head Office, Ranchi and also attended workshop on in various business activities of the company with 07.05.2019. Further he also assessed use of Hindi at our use of computerization and leveraging of technology. Bangalore Office and Delhi Office on 22.08.2019 and Emphasis is laid on preventive vigilance, spreading 06.02.2020 respectively. awareness, surveillance and analysis of systems & procedures in detail to ensure optimum utilization of During the year under review, concerned officials of resources, appropriate & timely decisions, corrective your Company has participated in various workshops action against defaulters and transparency & / seminars and meetings organised by bodies like accountability in the system. In this direction relevant ‘Parivartan Jan Kalyan Samiti’, under the guidance circulars and guidelines from CVC and statutory of Rajbhasha Vibhag, Ministry of Steel, Rajbhasha authorities, as and when issued, are put in the in-house Implementation Committee held on 31.05.2019 intranet ‘meconinfo’ for wider circulation among the to 02.06.2019 at Trivendram. MSTC, Kolkata has employees. Vigilance articles are also published in the organized “Rajbhasha Symposium” on 31st July, 2019 in-house publications whenever possible. under the chairmanship of State Steel Minister, Govt. of India. Complaints, as and when received, are investigated Major events organized by Rajbhasha Vibhag of your promptly by Vigilance Department after checking their Company during the year 2019-20 are as follows:- veracity wherever needed. Sensitive sections / areas in the organization have been identified and thrust ¾¾ “Hindi Pakhwara” at Head Office as well as in all is laid on conducting surprise inspections, regular the site offices of the company from 14.09.2019 inspections, scrutiny of files & studies in these areas to 28.09.2019. Special Hindi workshop and one including CTE type inspection and suitable suggestions Rajbhasha symposium on “Unicode ke jariye including job rotation are given for improvement in Hindi me Kam-Kaj” were organised during the the system to eliminate discrepancies found, if any. A Pakhwara Additionally, competitions of various number of suggestions given by Vigilance Department natures were also organized. On this occasion all for systemic improvement and streamlining various employees took a pledge to increase use of Hindi 26 47th ANNUAL REPORT procedures have been implemented and the process is available on the Company’s Website. Whistle Blower continuing. Policy, Fraud Prevention Policy and RTI Manual have been uploaded on Company’s Website www. Online Vigilance Clearance System for the purpose meconlimited.co.in. of vigilance clearance / status of employees in case of promotion, resignation, retirement etc. exists and Your company is pleased to share with you that online Vigilance Department maintains a computerized Bill Watch System has been combined with MECON’s database. Submission of Annual Property Returns has GST system (MecGST) w.e.f. 01.09.2018 to enable been made online in the Company and APRs for the display of status of payments of vendor’s / supplier’s bills year 2019 have been submitted by the employees and its / invoices more effectively and avoiding duplication database is maintained and is continuously scrutinized of data entry for two different systems. It would also and monitored. ensure compliance with recent instructions from CVC on monitoring & timely release of payments to Integrity Pact (IP) is functional in your Company since vendors / suppliers / contractors. 2007 under an Independent External Monitor who is responsible for overseeing the process of procurement Your Company is pleased to inform you that Vigilance and transactions where Integrity Pacts are signed Department follows a well-established Quality between your Company and counterparties. Your Management System (ISO 9001:2008) which has been Company enters into Integrity Pact with vendors / certified by M/s TUV India Pvt. Ltd. (a subsidiary suppliers / contractors for orders of ₹1.0 Crore & above of TUV NORD CERT Gmbh, Germany) and the for EPC Projects and for orders of ₹25.0 lakh & above department is in the advance stages for meeting the for Town Administration and In-house Procurement. requirements to get upgraded to ISO 9001:2015 The draft IP forms part of tender documents, wherever certification. applicable. Till March 2020, your Company has signed 22.0 DEVELOPMENT AND IMPLEMENTATION Integrity Pact (IP) with 206 suppliers / contractors. So OF RISK MANAGEMENT. far no representation / complaints / disputes have been received in the matters of tenders and contracts under The Company has a Risk Management Policy with I P. the objective of managing the potential risk and optimizing the risk exposure in the long run by Vigilance Awareness Week (VAW) -2019 was observed continual identification, assessment / monitoring at Head Office, Ranchi and at various Offices of the and management of risks associated with its overall Company in other parts of India from 28th October business processes and operations. to 2nd November 2019 in which the employees & students participated with enthusiasm. As part of The Company’s risk management framework outreach activities awareness programmes in various encompasses its entire value chain of marketing, forms were conducted in several schools & colleges contracts, technical, financial and human resources. located in these places in course of observance of VAW- Management is accountable to the Board for effective 2019. The theme for observing Vigilance Awareness implementation of risk management strategies in all Week 2019 was “Integrity – A way of life”. relevant areas of company operations. For this purpose periodic reviews are held both at the operational levels Program such as talks, interactive sessions, presentation, and at the corporate level to identify and prepare action essay competition, poster and painting competition, plans to address new risks or harness new opportunities vigilance walk, were also organized in these offices/ that have arisen or likely to emerge and also to prevent Institutions across the country for sensitizing / eliminate the instances of non compliance with laws employees & participants against corruption. Panel & regulations. discussions were also organized on topics of sensitive areas of working. The Company’s risk management and control systems provide a reasonable assurance towards the realization Complaint Handling Policy has been uploaded of strategic objectives of the organization. During the on Company’s website with a provision of lodging year under review there was no such potential risk which complaint online which is accessible to common could have threatened the existence of the Company. individuals. Contact Details of CVO and Senior Officials However, in view of the ever increasing complexities of Vigilance department, Organizational Structure of of business models and geo-political market dynamics, Department, Vigilance Quality Policy of the Company, your company is in the process of upgrading the Risk ISO Certificate of Vigilance Department, Handbook Management framework. of CVC Circulars & Guidelines, Resolution on Public Interest Disclosures & Protection of Informer (PIDPI), The management discusses all categories of risks with Integrity Pact have been uploaded in the Vigilance tab members of the Audit Committee. Risks associated 27 MECON MECON Limited

with compliance and financial reporting is also shared Shri Saraswati Prasad, IAS, ceased to be the director with the Audit Committee. On quarterly basis, the of the Company w.e.f. 17.03.2020 on his becoming management reviews actual performance against Secretary and transferred to other Ministry. the targeted budget and forecast are held with all Shri Vijoy Kumar Singh, has been appointed as supplementary data / documents. The well established Government Director on 17.03.2020, effective from risk management and control systems thus described 26.05.2020. and adopted provide a reasonable assurance as to the realization of strategic objectives. Shri Arun Kumar Agrawal has been appointed as Director (Technical) w.e.f. 01.06.2020 in place of Shri 23.0 RIGHT TO INFORMATION P.K. Sarangi who ceased to be Director (Technical) on In line with the directives of the Government of his superannuation on 31.05.2020. India, your Company has implemented the Right 25.0 MANAGEMENT DISCUSSION & ANALYSIS to Information Act, 2005 from the date of its REPORT implementation. All relevant manuals pertaining to RTI Act, 2005 have been hosted on the Company’s The Management Discussion & Analysis Report website www.meconlimited.co.in w.e.f 19.09.2005 covering the performance and outlook of the Company and are timely updated. A Public Information Officer is enclosed vide Annexure-II. (PIO) has been nominated by the Management at its 26.0 CORPORATE GOVERNANCE Headquarters and various Assistant Public Information The company has complied with the requirements of Officers (APIOs) have been nominated at Head Office Corporate Governance Guidelines issued by Govt. of as well as various Regional and Site offices of the India. The detail in this regard forming part of this Company. The queries coming to the Company from report is enclosed vide Annexure-III. the public are being attended to by these nominated officials and replied back to the applicant by the Public 27.0 AUDITORS Information Officer within the stipulated time period. M/s. V. Rohatgi & Co, Chartered Accountants, was A First Appellate Authority (FAA) and Transparency appointed as the Statutory Auditors for the financial Officer has also been appointed in accordance with the year 2019-20 by the Comptroller & Auditor General of RTI Act to ensure smooth and effective implementation India (C&AG). They have also been assigned to carry of the RTI Act. out the audit under Section 44AB of the Income Tax All quarterly and annual returns are timely e-filed with Act, 1961 for the financial year 2019-20. the Statutory Authorities. 28.0 DIRECTOR’S RESPONSIBILITY STATEMENT 24.0 CHANGES IN BOARD OF DIRECTORS Pursuant to the requirement under Section 134 (5) of UPTO THE DATE OF AGM. the Companies Act, 2013 with respect to Director’s Smt. Manju Chandra has been appointed as Responsibility Statement, it is hereby confirmed that: Independent Director of the Company on 21.10.2019 i) In the preparation of the annual accounts for effective from 08.11.2019. the financial year ended 31st March, 2020, the Shri Goutam Chatterjee, Director (Commercial) applicable accounting standards had been retired from the services of the Company on attaining followed along with proper explanation relating the age of superannuation on 31.10.2019. to material departures; ii) The Directors had selected such accounting Shri Sisir Kumar Appikatla, ceased to be Independent policies and applied them consistently and made Director on completion of his tenure w.e.f 12.11.2019. judgments and estimates that are reasonable Shri Sanjay Kumar Verma has been appointed and prudent so as to give a true and fair view of as Director (Commercial) of the Company w.e.f the state of affairs of the Company at the end of 15.01.2020. the financial year and of the profit or loss of the Company for that period; Smt. Rasika Chaube ceased to be the director of the Company w.e.f. 22.01.2020. Later on, she was again iii) The Directors had taken proper and sufficient appointed as Government Director on 17.03.2020. care for the maintenance of adequate accounting records in accordance with the provisions of Dr. Rohit Yadav, IAS was appointed as Government the Companies Act, 2013 for safeguarding the Director w.e.f. 22.01.2020, ceased to be the director of assets of the Company and for preventing and the Company w.e.f. 25.02.2020 on his transfer to PMO. detecting fraud and other irregularities;.

28 47th ANNUAL REPORT iv) The Directors had prepared the annual accounts MECON has also enjoyed unstinting support and for the financial year 2019-20 on a going concern guidance from all the Ministries of the Government basis; and of India, particularly the Ministry of Steel, State Governments etc. All the stakeholders, especially v) The Directors had devised proper systems the suppliers, customers and business partners, have to ensure compliance with the provisions of extended tremendous support towards the success of all applicable laws and that such system were the Organisation. adequate and operating effectively. The Directors assure of their unwavering focus on the 29.0 INDEPENDENT DIRECTOR DECLARATION strategic plans of your Company to steer it responsibly In terms of Section 149(7) of the Companies Act, to stellar heights. 2013, necessary declaration have been given by Part- time Independent Directors stating that they meet the For and on behalf of the criteria of independence as provided in Section 149(6) Board of Directors of of the Companies Act, 2013. MECON Limited 30.0 ACKNOWLEDGEMENT The Directors commend the indefatigable efforts Sd/- of the employees at all levels which has contributed Atul Bhatt immensely to the growth of the Company this year. Chairman and Managing Director Their dedication and commitment will stand the organisation in good stead to meet the challenges in future. Place: Ranchi Date: 24.11.2020

29 MECON MECON Limited

Appendix - I MGT 9 - EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2020 Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014. I. REGISTRATION & OTHER DETAILS:

1 CIN U74140JH1973GOI001199 2 Registration Date 31.03.1973 3 Name of the Company MECON LIMITED 4 Category/Sub-category of the Company PRIVATE COMPANY GOVERNMENT COMPANY 5 Address of the Registered office & contact details VIVEKANANDA PATH, P.O. DORANDA, RANCHI -834002 (JHARKHAND) 6 Whether listed company NO 7 Name, address & contact details of the Registrar & NIL Transfer Agent, if any. II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

Sl. Name and Description of main products NIC Code of the Product/ % to total turnover of the No. / services service company 1 CONSULTANCY SERVICES 61.00% 2 CONSTRUCTION CONTRACTS 27.00% 3 PROCUREMENT SERVICES 12.00% III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl Name and address of the CIN/GLN Holding/ % of shares held Applicable No Company Subsidiary/ Section Associate 1 METALLURGICAL & 2(6) OF JOINT ENGINEERING CONSULTANTS – 50% COMPANIES VENTURE (NIGERIA) LTD. ACT, 2013 IV. SHARE HOLDING PATTERN (Equity share capital breakup as percentage of total equity) (i) Category-wise Share Holding

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of % of Total % of Total during the Shareholders Demat Physical Total Demat Physical Total Shares Shares year A. Promoters (1) Indian ------a) Individual/ HUF - 240 240 0.0006% - 240 240 0.0006% 0.0000% b) Central Govt - 40,138,120 40,138,120 99.9994% - 40,138,120 40,138,120 99.9994% 0.0000% c) State Govt(s) - - - 0.0000% - - - 0.0000% 0.0000% d) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000%

30 47th ANNUAL REPORT

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of % of Total % of Total during the Shareholders Demat Physical Total Demat Physical Total Shares Shares year e) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000% f) Any other - - - 0.0000% - - - 0.0000% 0.0000% Sub Total (A) (1) - 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000% (2) Foreign a) NRI - - - 0.0000% - - - 0.0000% 0.0000% Individuals b) Other - - - 0.0000% - - - 0.0000% 0.0000% Individuals c) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000% d) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000% e) Any other - - - 0.0000% - - - 0.0000% 0.0000% Sub Total (A) (2) - - - 0.0000% - - - 0.0000% 0.0000% TOTAL - 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000% shareholding of promoter (A) = (A) (1) + (A) (2) B. Public Shareholding 1. Institutions a) Mutual Funds - - - 0.0000% - - - 0.0000% 0.0000% b) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000% c) Central Govt - - - 0.0000% - - - 0.0000% 0.0000% d) State Govt(s) - - - 0.0000% - - - 0.0000% 0.0000% e) Venture - - - 0.0000% - - - 0.0000% 0.0000% Capital Funds f) Insurance - - - 0.0000% - - - 0.0000% 0.0000% Companies g) FIIs - - - 0.0000% - - - 0.0000% 0.0000% h) Foreign - - - 0.0000% - - - 0.0000% 0.0000% Venture Capital Funds i) Others - - - 0.0000% - - - 0.0000% 0.0000% (specify) Sub-total (B)(1):- - - - 0.0000% - - - 0.0000% 0.0000% 2. Non-Institutions a) Bodies Corp. i) Indian - - - 0.0000% - - - 0.0000% 0.0000% ii) Overseas - - - 0.0000% - - - 0.0000% 0.0000% b) Individuals i) Individual - - - 0.0000% - - - 0.0000% 0.0000% shareholders holding nominal share capital upto Rs. 1 lakh

31 MECON MECON Limited

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of % of Total % of Total during the Shareholders Demat Physical Total Demat Physical Total Shares Shares year ii) Individual - - - 0.0000% - - - 0.0000% 0.0000% shareholders holding nominal share capital in excess of Rs 1 lakh c) Others - - - 0.0000% - - - 0.0000% 0.0000% (specify) Sub-total (B)(2):- - - - 0.0000% - - - 0.0000% 0.0000% Total Public (B) - - - 0.0000% - - - 0.0000% 0.0000% = (B) (1) + (B) (2) C. Shares held - - - 0.0000% - - - 0.0000% 0.0000% by Custodian for GDRs & ADRs Grand Total - 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000% (A+B+C)

(ii) Shareholding of Promoters

Shareholding at the beginning of the year Shareholding at the end of the year % of Shares % of Shares % change in % of total % of total S Pledged/ Pledged / shareholding Shareholder’s Name No. of Shares No. of Shares N encumbered encumbered during the Shares of the Shares of the to total to total year company company shares shares 1 PRESIDENT OF INDIA 40,138,120 99.9994% NIL 40,138,120 99.9994% NIL 0.0000% 2 SMT. RASIKA 120 0.0003% NIL 120 0.0003% NIL 0.0000% CHAUBEY, Govt. Director & Additional Secretary, Ministry of Steel* 3 SHRI ATUL BHATT, 120 0.0003% NIL 120 0.0003% NIL 0.0000% CMD* TOTAL 40,138,360 100.0000% - 40,138,360 100.0000% - 0.0000%

* held as nominee shareholder of the President of India. (iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Shareholding at the beginning of Cumulative Shareholding during SN Particulars the year the year No. of shares % of total shares No. of shares % of total shares At the beginning of the year Date wise Increase / Decrease in Promoters - NO CHANGE - Share holding during the year specifying At the end of the year

32 47th ANNUAL REPORT

(iv) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs):

SN For each of the Top Shareholding at the beginning of the Cumulative Shareholding during the 10 shareholders year year No. of shares % of total shares No. of shares % of total shares At the beginning of the year Date wise Increase /Decrease in Promoters Share holding during the - NIL - year specifying At the end of the year (or on the date of separation, if separated during the year)

(v) Shareholding of Directors and Key Managerial Personnel:

SN For each of the Directors and Shareholding at the beginning of Cumulative Shareholding Key Managerial Personnel the year during the year

No. of shares % of total No. of shares % of total shares shares

1 Smt. Rasika Chaube, Government Director & Additional Secretary, Ministry of Steel*

At the beginning of the year 120 0.0003% 120 0.0003%

Date wise Increase /Decrease in Share holding during the - 0.0000% - 0.0000% year specifying the reasons for increase/ decrease

At the end of the year 120 0.0003% 120 0.0003%

2 Shri Atul Bhatt, Chairman and Managing Director*

At the beginning of the year 120 0.0003% 120 0.0003%

Date wise Increase /Decrease - 0.0000% - 0.0000% in Share holding during the year specifying the reasons for increase/ decrease

At the end of the year 120 0.0003% 120 0.0003%

* held as nominee shareholders of the President of India

33 MECON MECON Limited

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment.

(Amt. ₹/Lakh)

Particulars Secured Loans Unsecured Deposits Total excluding Loans Indebtedness deposits

Indebtedness at the beginning of the financial year

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i+ii+iii)

Change in Indebtedness during the financial year

* Addition Nil Nil Nil * Reduction

Net Change

Indebtedness at the end of the financial year

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i+ii+iii)

34 47th ANNUAL REPORT

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Name of the Managing Director / Whole time Director / Manager (Shri) Particulars of Goutam Remuneration Atul Bhatt P. K. Sarangi Salil Kumar R. H. Juneja S. K. Verma S Chatterjee Total N. Amount From From From From From From Period 01-04-2019 to 01-04-2019 to 01-04-2019 to 01-04-2019 to 01-04-2019 to 15-01-2020 to 31-03-2020 31-03-2020 31-10-2019 31-03-2020 31-03-2020 31-03-2020 1 Gross salary (a) Salary as per provisions contained in 3,010,257.00 3,157,812.00 5,487,706.00 2,806,275.00 2,937,471.00 346,856.00 17,746,377.00 section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) of the 623,456.00 1,878,966.00 1,653,605.00 287,894.00 1,796,464.00 33,875.00 6,274,260.00 Income-tax Act, 1961 (c) Profits in lieu of salary under section ------17(3) of the Income- tax Act, 1961 2 Stock Option ------3 Sweat Equity ------4 Commission ------as % of profit ------others, ------specify 5 Others, please ------specify Total (A) 3,633,713.00 5,036,778.00 7,141,311.00 3,094,169.00 4,733,935.00 380,731.00 24,020,637.00 B. Remuneration to other Directors

S Particulars of Total Name of Directors N. Remuneration Amount 1 Independent Directors Fee for attending board Shri Sisir Kumar Appikatla (From 01-04-2019 to 12-11-2019) 70,000.00 committee meetings Shri Deepak Krishan 200,000.00 Manju Chandra (From 08-11-2019) 120,000.00 Commission - - Others, please specify - - Remunaration Shri Sisir Kumar Appikatla (From 01-04-2019 to 12-11-2019) 10,000.00 Shri Deepak Krishan 10,000.00 Total (1) - 410,000.00

35 MECON MECON Limited

S Particulars of Total Name of Directors N. Remuneration Amount 2 Other Non-Executive Shri Saraswati Prasad, IAS (upto 17.03.2020), Smt Rasika Directors Chaube (upto 22.01.2020 and w.e.f 17.03.2020), Dr. Rohit Yadav, IAS (w.e.f 22.01.2020 to 25.02.2020)" Fee for attending board - - committee meetings Commission - - Others, please specify - - Total (2) - - Total (B)=(1+2) - 410,000.00 Total Managerial - - Remuneration Overall Ceiling as per the - - Act C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Particulars of Remuneration Name of Key Managerial Personnel Total SN. Name & Designation CEO Company Secretary CFO Amount 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 - NA - 2 Stock Option 3 Sweat Equity 4 Commission - as % of profit - others, specify 5 Others, please specify Total

36 47th ANNUAL REPORT

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Authority Appeal made, Companies Act Description Penalty / [RD / NCLT/ if any (give Punishment/ COURT] Details) Compounding fees imposed A. COMPANY Penalty Punishment NIL Compounding B. DIRECTORS Penalty Punishment NIL Compounding C. OTHER OFFICERS IN DEFAULT Penalty Punishment NIL Compounding

37 MECON MECON Limited

ANNEXURE-A FORM 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 proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis

(a) Name(s) of the related party and nature of relationship NIL

(b) Nature of contracts/ arrangements/ transactions NA

(d) Salient terms of the contracts/ arrangements or transactions including the value, NA if any

(e) Justifications for entering into such contacts or arrangements or transactions NA

(f) Date(s) of approval of the Board NA

(g) Amount paid as advance, if any NA

(h) Date on which the special resolution was passed in the general meeting as NA required under first proviso to section 188

2. Details of materials contacts or arrangements or transactions at arm’s length basis

a) Name(s) of the related party and nature of relationship NIL

b) Nature of contracts/ arrangements/ transactions NA

c) Durations of the contracts/ arrangements/ transactions NA

d) Salient terms of the contracts or arrangements or transactions including the NA value, if any

e) Date(s) of approval of the Board, if any NA

f) Amount paid as advance, if any NA

Sd/- Atul Bhatt Chairman and Managing Director

38 47th ANNUAL REPORT

APPENDIX- II CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY 1. a) Brief Outline of CSR & Sustainability Policy of MECON Limited The CSR & Sustainability policy of your Company is in accordance with the provisions of the Companies Act, 2013 and DPE guidelines and is approved by the Board based on the recommendation of the CSR & Sustainability Committee. The Board approved CSR & Sustainability Policy of the Company is available at www.meconlimited.co.in/Writereaddata/ Downloads/CSR_Policy.pdf Your Company has two-tier organizational structure to steer the CSR agenda. The Board Level CSR & Sustainability Committee comprising of a Part Time Independent Director as Chairman and two functional Directors as Members and a team of cross-section of employees, headed by a Nodal Officer constitutes the two-tier organization structure. The annual budget for CSR and Sustainability is approved by Board of Directors. The CSR plans are formulated and approved by CSR & Sustainability Committee and ratified by Board of Directors, as per the provision of Companies Act, 2013 and DPE guidelines. Your Company spends in each financial year, at least 2% of the average net profits made during the three immediately preceding financial years. Any unspent/unutilized fund of a particular year, is carried forward to the following year. The overall responsibility of CSR plans lies with the Nodal Officer, CSR & Sustainability. The CSR & Sustainability activities of your Company are as per Schedule-VII to the Companies Act, 2013, with special attention to the development of weaker/marginalized/under privileged sections of the society including SC/ST/OBC/Minorities, women and children, old and aged, physically challenged etc. All the CSR activities are implemented in project mode. Your Company having expertise in Engineering and Project Management, all the CSR projects are monitored by the Company itself. The implementation and monitoring of CSR activities are overseen by the CSR & Sustainability Committee. As per Board’s approved CSR & Sustainability policy, Impact Assessment for all completed CSR projects/activities upto project cost of ₹50.0 lakh are carried out by the Company. However, where project cost exceeds of ₹50 lakh, the Impact Assessment is carried out by external agency. Your Company reports / discloses CSR activities to stakeholders through its official website: www.meconlimited.co.in/csr.aspx and its Annual Report at: www.meconlimited.co.in/Annual_ Report.aspx. b) The details of CSR Projects approved by the Board of Directors are indicated at Appendix- A, B, C & D. The same are also available at www.meconlimited.co.in/csr_activities_planned.aspx c) The main highlights of CSR Projects/Activities undertaken by your Company during the year are as follows: i) Nutrition ii) Healthcare iii) Sanitation (Swachh Bharat Abhiyan) iv) Drinking Water v) Education

39 MECON MECON Limited

vi) Skill Development & Livelihood vii) Project for Divyangs viii) Social Welfare ix) Relief from Emergency or Distress Situation (Contribution in PM CARES Fund) (to deal with COVID-19 pandemic) x) Rural Development xi) Other activities/ Miscellaneous Programs 2. Composition of the CSR Committee The last reconstituted CSR & Sustainability Committee which was in place as on 31.03.2020, consists of the following Directors: i) Shri Deepak Krishan Part Time Independent Director ii) Shri Pradipta Kumar Sarangi Director (Technical) iii) Shri Rajendra Harbhagwan Singh Juneja Director (Finance) The details on latest reconstituted CSR & Sustainability Committee is available at www.meconlimited.co.in/ Board_level_comitte_csr.aspx 3. a) Net Profit for CSR for the last 3 financial years are as follows :

2016-17 : ₹ (-) 8,815.32 Lakh 2017-18 : ₹ 4,397.97 Lakh 2018-19 : ₹ 995.84 Lakh b) Average Net Profit for the last 3 financial years : ₹ (-) 1,140.50 Lakh 4. a) Funds allocable towards CSR expenditure for the : NIL Financial Year 2019-20 (As per Section-135 of The Companies Act, 2013) b) Funds allocated towards CSR expenditure for the : ₹ 19.92 Lakh Financial Year 2019-20 {2% of Adjusted PBT (i.e. Rs. 995.84 Lakh) of FY 2018-19 as per DPE Guidelines} 5. Details of CSR fund spent during the Financial Year 2019-20, are indicated in Annexure-I. Manner in which the amount spent are as given below:

a) Total amount available for FY 2019-20 : i) Unspent (Carry-over) fund : ₹ 527.11 Lakh ii) Allocation for Financial Year 2019-20 : ₹ 19.92 Lakh Total amount : ₹ 547.03 Lakh b) Total amount spent on CSR activities during the financial year 2019-20 : ₹ 330.52 Lakh c) Amount unspent {to be carried to next financial year (i.e. FY 2020-21)} : ₹ 216.51 Lakh 6. Reasons for not spending the amount: 6.1 The majority of CSR projects / activities are infrastructure development projects which take time in conceiving the project, carrying out basic design & detailed engineering, tendering, and then construction, etc.

40 47th ANNUAL REPORT

6.2 The following projects as listed below could not be completed in FY 2019-20 due to the reasons as indicated: i) Solar powered Drinking water system in Adopted Village-Sungi, Block-Karra, Dist.-Khunti [Sl. No.2 (i) of List of Carry-over Projects for FY 2019-20]: Boring work was carried out in February’2020, however, it failed due to non-availability of underground water at the proposed location. Other suitable Borewell locations (where availability of water would be high) are being surveyed. ii) Solar powered Drinking water system in Adopted Village-Rai, Block-Khunti, Dist.-Khunti [Sl. No.2 (ii) of List of Carry-over Projects for FY 2019-20]: Boring work was carried out in February’2020. Civil foundation work under progress (for Structural platform). iii) Solar powered Drinking water system in Adopted Village-Rupru, Block-Angara, Dist.-Ranchi [Sl. No.2 (iii) of List of Carry-over Projects for FY 2019-20]: The tender for the above project was invited in October’2019. Due date of submission of tender for the above project was extended twice as the offers were received from only two parties. In March’2020, the offers were under advanced stage of scrutiny and recommendation. iv) Construction of Boys Hostel Building in Orphanage at Village-Sungi, Khunti [Sl. No.5 (i) of List of Carry-over Projects for FY 2019-20]: Roof casting was done in February’2020. Other Civil work is under progress. The Contractor has submitted the nd2 RA bill, which is under processing for release of payment. v) Construction of Borewell at Old Age Home, Nagri, Ranchi [Sl. No.5 (ii) of List of Carry-over Projects for FY 2019-20]: Boring work was carried out in April’2019 and the pumping system was installed, however as the area is boggy, the Borewell failed. The Contractor was advised to carry out fresh Boring work at new location. The Contractor is yet to complete the work due to non-availability of DTH Boring machine in Jharkhand. vi) Construction of Community Centre in U.P. [Sl. No. 5 (iii) of List of Carry-over Projects for FY 2019- 20]: Regular reminders were sent to M/s HSCL {A subsidiary of NBCC (India) Ltd.} to complete the balance work of above project and submit their bills in line with GST alongwith anti-profiteering declaration, but they are yet to submit the same. vii) All the projects mentioned below are complete and handed over to the Beneficiaries. The final bills of same have been processed and payment released. However, the LD (Liquidated Damages) amount has been withheld. a) Construction of Toilet Block in Village School of Adopted Village-Pancha [Sl. No. 6 (i) of List of Carry-over Projects for FY 2019-20] b) Construction of Toilet Complex in Adopted Village-Pancha [Sl. No. 6 (ii) of List of Carry-over Projects for FY 2019-20] c) Construction of Toilet Block for Girls in Orphanage of Adopted Village-Sungi [Sl. No. 6 (iv) of List of Carry-over Projects for FY 2019-20] d) Construction of Toilet Block for Boys in Orphanage of Adopted Village-Sungi [Sl. No. 6 (v) of List of Carry-over Projects for FY 2019-20] viii) Construction of Toilet Complex in Adopted Village-ParsaToli, Pancha [Sl. No. 6 (iii) of List of Carry- over Projects for FY 2019-20] The Contractor has submitted the th6 RA bill, which is under processing for release of payment.

41 MECON MECON Limited

ix) Construction of 1 no. of Class room in Rural area of U.P. [Sl. No. 6 (vi) of List of Carry-over Projects for FY 2019-20] Regular reminders were sent to M/s HSCL {A subsidiary of NBCC (India) Ltd.} to complete the balance work of above project and submit their bills in line with GST alongwith anti-profiteering declaration, but they are yet to submit the same. x) Construction of Toilet Complex in adopted Village - Bar Toli, Pancha, Block-Bundu, Dist-Ranchi [Sl. No. 6 (vii) of List of Carry-over Projects for FY 2019-20] Roof casting was done in March’2020. The Contractor is yet to submit the st1 RA bill. xi) Purchase of Bio-Media Kit/Bacteria for Annual Maintenance of Pre-fabricated Bio-Toilets installed in Lohardaga & Hazaribagh districts of Jharkhand [Sl. No. A.1 (i) of List of New Projects for FY 2019-20]. Purchase Order has been placed in March’ 2020. xii) Cataract surgery for poor/down-trodden/needy villagers of Adopted villages/other villages/under- developed/slum areas etc. of Ranchi & Khunti districts of Jharkhand. [Sl. No. A.3 (i) of List of New Projects for FY 2019-20]. After clinical examination and investigations/tests, only 3 (three) out of 7 (seven) villagers were advised for Cataract surgery. Cataract surgery of only one patient could be carried out in February’2020, as other two patients were medically unfit for surgery during that time. xiii) Setting up Science Lab in Schools in Ranchi District [Sl. No. A.4 (i) of List of New Projects for FY 2019-20]. The fund of the above project was used for transferring to PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund). (As per directive of Ministry of Steel issued vide their E-mail dtd. 29.03.2020 regarding ‘Unspent CSR Budget’) xiv) “Certification of Prior Learning” in respect of various Skill of the villagers of Adopted villages of Ranchi & Khunti districts of Jharkhand. [Sl. No. A.5 (i) of List of New Projects for FY 2019-20]. The above project has been amended to the project - “Skill development of youths of Adopted Villages/ Other Villages etc. at ‘Jharkhand Govt. Tool Room’ (JGTR), Ranchi” (Amendment vide 22nd Meeting of the CSR & Sustainability Committee held on 30.01.2020.) 6 (six) youths of Adopted Village- Sungi, District- Khunti are undergoing training at JGTR, which has started in February’2020. xv) Providing Vehicle to Jharkhand Parents Association, Ranchi for facilitation of conveyance of Divyangs to “KOSHISH” - A Special School-cum- Vocational Training Centre (Addendum of Additional New Project vide 22nd Meeting of the CSR & Sustainability Committee held on 30.01.2020.) [Sl. No. B.2 (i) of List of Additional New Projects for FY 2019-20]. Purchase Order for Supply of Vehicle was placed in March’2020. xvi) Renovation of Roof & False Ceiling alongwith Illumination facilities etc. of Dinning Hall-cum- Candle Making Section of Cheshire Homes India, Ranchi (A Home for Physically challenged Persons - Divyangs) (Addendum of Additional New Project vide 22nd Meeting of the CSR & Sustainability Committee held on 30.01.2020.) [Sl. No. B.2 (ii) of List of Additional New Projects for FY 2019-20]. Detailed engineering work under progress. xvii) Renovation of Printing Section Building of Cheshire Homes India, Ranchi (A Home for Physically challenged Persons - Divyangs) (Addendum of Additional New Project vide 22nd Meeting of the CSR & Sustainability Committee held on 30.01.2020.) [Sl. No. B.2 (iii) of List of Additional New Projects for FY 2019-20]. Detailed engineering work under progress. 7.0 i) It is also affirmed that all the applicable clauses of Guidelines issued by DPE vide OM No.: 15(13)/2013-DPE(GM) dated: 21.10.2014 is being complied with.

42 47th ANNUAL REPORT ii) As per the guidelines issued by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises vide ref. No. CSR-08/0002/2018-Dir (CSR) dated 29.05.2019 for taking theme based intervention in School Education, Healthcare and Nutrition in Aspirational Districts (as identified by NITI Aayog), your Company identified new projects related to above theme such as Cataract surgery, Nutrition projects, etc. and also carried out On-going regular projects such as Community Education (Free Literacy program), Healthcare (organising Health camps) etc.

Sd/- Sd/- Rajendra Harbhagwan Singh Juneja Deepak Krishan Director (Finance) Chairman (CSR Committee)

43 MECON 44

Appendix-A MECON Limited

MECON LIMITED Corporate Social Responsibility and Sustainability Summary of Planned Expenses for On-Going Regular/Carry-Over Projects under Implementation and New Projects for FY 2019-20

SI. Projects Item no. of Planned Recurring Planned Planned Total Planned Remarks No. Schedule-VII expenses on On- Expenses on Expenses on Expenses going Regular Carry-over New Projects of (In Rs. Lakhs) (Committed) activity projects 2019-20 (In Rs. Lakhs) (In Rs. Lakhs) (In Rs. Lakhs)

1 Sanitation (i) 0.000 0.970 1.250 2.220

2 Drinking water (i) 0.000 25.140 0.000 25.140

3 Nutrition (i) 0.000 0.000 5.000 5.000

4 Healthcare (i) 3.000 3.500 1.000 7.500

5 Preventive Healthcare (related to (i) 0.000 0.000 3.200 3.200 COVID-19 eff orts)

6 Education (ii) 3.280 0.000 0.000 3.280

7 Projects for Divyangs (ii) 0.000 0.000 31.750 31.750

8 Skill development and Livelihood (ii) 4.220 0.510 4.140 8.870

9 Social Welfare (iii) 0.000 65.020 0.000 65.020

10 Relief from Emergency or Distress (viii) 0.000 0.000 275.000 275.000 Situation

11 Rural development (x) 0.000 93.659 0.000 93.659

12 Other Activities/Miscellaneous Programs 26.390 0.000 0.000 26.390

TOTAL 36.89 188.80 321.34 547.03 Appendix-B MECON LIMITED Corporate Social Responsibility and Sustainability List of “On-Going Regular Projects” under Implementation for FY 2019-20 Sl. Projects Item Financial Project Planned Remarks No. no. of Progress Cost Recurring Schedule- Target (%) in (In Rs. expenses on On- VII FY 2019-20 Lakhs) going Regular (Committed) activity From To (In Rs. Lakhs) 1 Healthcare i) Health Camps in Adopted Villages of Ranchi & Khunti districts of Jharkhand (i) 0 100 3.000 3.000 On-going regular activity and in & near Ranchi. Sub-Total (1) 3.000 3.000 2 Education i) Honorarium to Teachers of 8 Community Education Centres in & around (ii) 0 100 2.880 2.880 On-going regular activity Ranchi and in Adopted Village of Khunti district in Jharkhand ii) Study Materials, Stationery, etc. for Community Education Centres (ii) 0 100 0.400 0.400 On-going regular activity Sub-Total (2) 3.280 3.280 3 Skill development and Livelihood i) Honorarium to Teachers of 7 Stitching Centres in & around Ranchi and in (ii) 0 100 2.520 2.520 On-going regular activity Adopted Village of Khunti district in Jharkhand. ii) Cloth, Stitchining Materials, etc. for Students of Stitching Centres for Training (ii) 0 100 0.450 0.450 On-going regular activity iii) Annual Examination of 7 Stitching Centres (ii) 0 100 1.250 1.250 On-going regular activity Sub-Total (3) 4.220 4.220 4 Other Activities/Miscellaneous Programs i) Engagement of Photographer as supporting staff 1.750 1.750 On-going regular activity

ii) Tours & travels for monitoring, site supervision etc. of projects 3.000 3.000 On-going regular activity 47

iii) Training of CSR employees & associated personnel for capacity building; 1.000 1.000 On-going regular activity th ANNUAL REPORT Seminar, etc. iv) Other welfare projects/activities; Miscellaneous programmes 20.640 20.640 On-going regular activity Sub-Total (4) 26.390 26.390

45 TOTAL 36.890 36.890 Contd... MECON 46 *Note: An amount of Rs. 318.23 Lakhs in respect of Sl. No. 4 (iv) – “Other Welfare Projects/Activities; Miscellaneous Programmes” of list of “On-going Regular MECON Limited Projects” under Implementation for FY 2019-20 was approved by the Board in its 236th Meeting held on 06.09.2019 vide Item No. 236/4058. Subsequently, based on the approval of Management/Board and Fund provisions, the requisite funds were transferred to the following Amended/New CSR Projects/ Activities from the above fund of Rs. 318.23 Lakhs. Th e total fund transferred was Rs. 297.59 Lakhs, and the remaining balance fund was Rs. 20.64 Lakhs.

Name of Project/Activity Amount (in Rs. Lakhs) Remarks (a) Skill development of Youths of Adopted Villages etc. at 2.14 An Additional fund requirement for the Project [Refer Sl. No. A 5 ii) Jharkhand Government Tool Room, Ranchi of List of New Projects for FY 2019-20] Approved by the Board vide Memorandum of Circulation (12/2019- 20) No. 11/78/4(3)/32 dtd. 05.02.2020 (b) Sanitization of MECON H.O. Premises, Purchase of 1.70 Fund provision made in CSR Cell’s approval note ref. no. 11.R7.9050. Cleaning materials, Purchase of PPE Kits, etc. (COVID-19 (3884) dtd. 30.03.2020 (Approval for contribution to PM CARES related expenses) Fund, which was approved by Management Committee during their meeting on 30.03.2020) (c) Sanitization and Cleaning activities of Ispat Hospital 1.50 Fund provision made in CSR Cell’s approval note ref. no. 11.R7.9050. (MECON Township Hospital), Shyamali Colony (3884) dtd. 30.03.2020 (Approval for contribution to PM CARES (COVID-19 related expenses) Fund, which was approved by Management Committee during their meeting on 30.03.2020) (d) Providing Vehicle to Jharkhand Parents Association, 5.00 Approved by the Board vide Item No. 239/4113 in its 239th Board Ranchi for facilitation of conveyance of Divyangs Meeting dtd. 30.01.2020. to “KOSHISH” - A Special School-cum- Vocational Training Centre (e) Renovation of Roof & False Ceiling alongwith 10.50 Approved by the Board vide Item No. 239/4113 in its 239th Board Illumination facilities etc. of Dinning Hall-cum-Candle Meeting dtd. 30.01.2020. Making Section of Cheshire Homes India, Ranchi (A Home for Physically challenged Persons - Divyangs) (f) Renovation of Printing Section Building of Cheshire 16.25 Approved by the Board vide Item No. 239/4113 in its 239th Board Homes India, Ranchi (A Home for Physically challenged Meeting dtd. 30.01.2020. Persons - Divyangs) (g) Relief from Emergency or Distress Situation : 260.50 Approved by Management Committee during their meeting on Contribution in PM CARES Fund (Prime Minister’s 30.03.2020. (Refer Note no.11.99.21/4 dtd. 30.03.2020) Citizen Assistance and Relief in Emergency situations Fund) (for dealing with COVID-19 Pandemic) TOTAL 297.59 Appendix-C MECON LIMITED Corporate Social Responsibility and Sustainability List of “Carry-Over Projects” under Implementation for FY 2019-20 Sl. Projects Item no. of Financial Project Expenses Planned Expenses on Carry-over projects Remarks No. Schedule- Progress Target Cost done in FY (In Rs. Lakhs) VII (%) in (in Rs. 12-13, 13- FY 2019-20 Lakhs) 14, 14-15, From To 15-16, 16- Under Under Tendering/ Under Sub- 17, 17-18 Initiation Ordering stage construction Total & 18-19 (in stage/ stage/ Rs. Lakhs) Management billing stage Approval Active Less stage Active 1 Sanitation i) Construction of Toilet (i) 98.31 100 57.33 56.36 0.00 0.00 0.00 0.97 0.97 Project of FY 2014-15 Blocks / Repair of dis- functional Toilets in MHRD schools in Jharkhand (under Swachh Vidyalaya Abhiyan) Sub-Total (1) 57.33 56.36 0.00 0.00 0.00 0.97 0.97 2 Drinking water i) Solar powered Drinking (i) 0 100 7.07 0.00 0.00 0.00 0.00 7.07 7.07 Project of FY 2018-19; Work water system in Adopted Order placed in FY 2019-20. Village-Sungi, Block-Karra, Project cost is the Work Order Dist.-Khunti value. 47 th

ii) Solar powered Drinking (i) 0 100 7.07 0.00 0.00 0.00 0.00 7.07 7.07 Project of FY 2018-19; Work ANNUAL REPORT water system in Adopted Order placed in FY 2019- Village-Rai, Block-Khunti, 20. Project cost is the Work Dist.-Khunti Order value.

47 Contd... MECON 48

Sl. Projects Item no. of Financial Project Expenses Planned Expenses on Carry-over projects Remarks MECON Limited No. Schedule- Progress Target Cost done in FY (In Rs. Lakhs) VII (%) in (in Rs. 12-13, 13- FY 2019-20 Lakhs) 14, 14-15, From To 15-16, 16- Under Under Tendering/ Under Sub- 17, 17-18 Initiation Ordering stage construction Total & 18-19 (in stage/ stage/ Rs. Lakhs) Management billing stage Approval Active Less stage Active iii) Solar powered Drinking (i) 0 100 11.00 0.00 11.00 0.00 0.00 0.00 11.00 Project of FY 2018-19; During water system in Adopted FY 2018-19, Project was Village-Rupru, Block- approved for Village-Pandutoli, Angara, Dist.-Ranchi Block-Nagri, Dist.-Ranchi, however similar facility has been constructed by State Govt. Thus the Approved Location has been changed to Village-Rupru, Block-Angara, Dist.-Ranchi. Sub-Total (2) 25.14 0.00 11.00 0.00 0.00 14.14 25.14 3 Healthcare i) Project Smile : Cleft lip (i) 0 100 3.50 0.00 0.00 0.00 0.00 3.50 3.50 Project of FY 2018-19. and Palate surgery for Supporting documents with poor/down-trodden/needy respect to bill from M/s patients ABMSS for 4 patients are awaited. Proposal / request in respect of 16 patients is awaited. Sub-Total (3) 3.50 0.00 0.00 0.00 0.00 3.50 3.50 4 Skill Development i) Cloths, Stitching Materials (ii) 0 100 0.14 0.00 0.00 0.00 0.00 0.14 0.14 Project of FY 2018-19 for Students of Stitching Centres for Annual Exam (2018-19)

Contd... Sl. Projects Item no. of Financial Project Expenses Planned Expenses on Carry-over projects Remarks No. Schedule- Progress Target Cost done in FY (In Rs. Lakhs) VII (%) in (in Rs. 12-13, 13- FY 2019-20 Lakhs) 14, 14-15, From To 15-16, 16- Under Under Tendering/ Under Sub- 17, 17-18 Initiation Ordering stage construction Total & 18-19 (in stage/ stage/ Rs. Lakhs) Management billing stage Approval Active Less stage Active ii) Annual Examination of 8 (ii) 0 100 0.37 0.00 0.00 0.00 0.00 0.37 0.37 Project of FY 2018-19 nos. Stitching & Embroidary Centres {Payment to UIL (Usha International Limited)} Sub-Total (4) 0.51 0.00 0.00 0.00 0.00 0.51 0.51 5 Social Welfare i) Construction of Boys Hostel (iii) 0 100 34.96 0.00 0.00 0.00 0.00 34.96 34.96 Project of FY 2015-16; Work in Orphanage at Vill.-Sungi, Order placed in FY 2018- Khunti 19. Project cost is the Work order value. ii) Construction of Borewell (iii) 0 100 3.06 0.00 0.00 0.00 0.00 3.06 3.06 Project of FY 2017-18; at Old Age Homes, Nagri, Work Order placed in FY Ranchi 2018-19. Project cost is the Work Order value; Physical progress 100% iii) Construction of Community 33.40 100 40.55 13.55 0.00 0.00 0.00 27.00 27.00 Project of FY 2013-14 Centre in UP Sub-Total (5) 78.57 13.55 0.00 0.00 0.00 65.02 65.02

6 Rural Development 47 th

i) Construction of Toilet Block (x) 83.14 100 42.07 34.98 0.00 0.00 0.00 7.09 7.09 Project of FY 2012-13; ANNUAL REPORT in Village School of Adopted Physical progress 100% Village-Pancha

49 Contd... MECON 50

Sl. Projects Item no. of Financial Project Expenses Planned Expenses on Carry-over projects Remarks MECON Limited No. Schedule- Progress Target Cost done in FY (In Rs. Lakhs) VII (%) in (in Rs. 12-13, 13- FY 2019-20 Lakhs) 14, 14-15, From To 15-16, 16- Under Under Tendering/ Under Sub- 17, 17-18 Initiation Ordering stage construction Total & 18-19 (in stage/ stage/ Rs. Lakhs) Management billing stage Approval Active Less stage Active ii) Construction of Toilet (x) 88.70 100 59.14 52.46 0.00 0.00 0.00 6.68 6.68 Project of FY 2012-13; Complex in Adopted Physical progress 100% Village-Pancha iii) Construction of Toilet (x) 44.19 100 59.14 26.13 0.00 0.00 0.00 33.01 33.01 Project of FY 2012-13. Complex in Adopted Village-Parsa Toil, Pancha iv) Construction of Toilet Block (x) 71.55 100 35.37 25.31 0.00 0.00 0.00 10.06 10.06 Project of FY 2013-14. for Girls in Orphanage of Physical progress 100% Adopted Village-Sungi v) Construction of Toilet Block (x) 60.27 100 35.57 21.44 0.00 0.00 0.00 14.13 14.13 Project of FY 2014-15. for Boys in Orphanage of Physical progress 100% Adopted Village-Sungi vi) Construction of 1 no. of (x) 73.43 100 7.60 5.58 0.00 0.00 0.00 2.02 2.02 Project of FY 2012-13. Class room in Rural area of UP vii) Construction of Toilet (x) 0.00 100 20.67 0.00 0.00 0.00 0.00 20.67 20.67 Project of FY 2018-19; Work Complex in adopted Village Order placed in FY 2019-20. - Bar Toli, Pancha, Block- Project cost is the Work order Bundu, Dist-Ranchi value. Sub-Total (6) 259.56 165.90 0.00 0.00 0.00 93.66 93.66 TOTAL 11.00 0.00 0.00 177.80 188.80 Appendix-D MECON LIMITED Corporate Social Responsibility and Sustainability List of “New Projects” for FY 2019-20

Sl. Projects Item no. of Financial Progress Target Project Planned Remarks No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) A. New Projects 1 Sanitation i) Purchase of Bio-Media Kit / Bacteria (i) 0 100 1.25 1.25 for Annual Maintenance of Pre- fabricated Bio-Toilets installed in Lohardaga & Hazaribagh districts of Jharkhand. Sub-Total (A.1) 1.25 1.25 2 Nutrition i) Nutrition project for poor/down- (i) 0 100 5.00 5.00 trodden/needy children of Adopted villages / other villages/ under- developed/ slum areas etc. of Ranchi & Khunti districts of Jharkhand.

Sub-Total (A.2) 5.00 5.00 47 th ANNUAL REPORT

51 Contd... MECON 52

Sl. Projects Item no. of Financial Progress Target Project Planned Remarks MECON Limited No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) 3 Healthcare i) Cataract surgery for poor/down- (i) 0 100 1.00 1.00 Earlier an amount of Rs. 3.00 Lakhs was trodden/needy villagers of Adopted approved by the Board in its 236th Meeting held villages / other villages/ under- on 06.09.2019 vide Item No. 236/4058. developed/ slum areas etc. of Ranchi Only 3 (three) out of 7 (seven) villagers were & Khunti districts of Jharkhand. advised for Cataract surgery. Accordingly, Rs. 2.00 Lakhs was transferred to Sl. No. B.3 i) - Contribution in PM CARES Fund (As per directive of Ministry of Steel issued vide their E-mail dtd. 29.03.2020 regarding transfer of 'Unspent amount of CSR Budget' to PM CARES Fund for COVID-19 eff orts) Fund for transfer (to PM CARES Fund) identifi ed aft er review of balance available fund, which was put forward for consideration as part of Management approval vide CSR Cell's note ref. no. 11.R7.9050.(3884) dtd. 30.03.2020 [which was approved by the Management Committee during their Meeting on 30.03.2020 {Refer Note ref. no. 11.99.21/4 dtd. 30.03.2020 of Offi ce of GM I/c (TS)}] Sub-Total (A.3) 1.00 1.00

Contd... Sl. Projects Item no. of Financial Progress Target Project Planned Remarks No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) 4 Education i) Setting up Science Lab in (ii) 0 100 -- -- Project was identifi ed and selected as per the Schools in Ranchi District request of TADP Cell, Ranchi (working under (Project Cost : Rs. 12.50 Lakhs) the Offi ce of Deputy Commissioner-cum District Magistrate) Rs. 12.50 Lakhs allocated against the project was transferred to Sl. No. B.3 i): Contribution in PM CARES Fund (As per directive of Ministry of Steel issued vide their E-mail dtd. 29.03.2020 regarding transfer of 'Unspent amount of CSR Budget' to PM CARES Fund for COVID-19 eff orts) Fund for transfer (to PM CARES Fund) identifi ed aft er review of balance available fund, which was put forward for consideration as part of Management approval vide CSR Cell's note ref. no. 11.R7.9050.(3884) dtd. 30.03.2020 [which was approved by the Management Committee during their Meeting on 30.03.2020 {Refer Note ref. no. 11.99.21/4 dtd. 30.03.2020 of Offi ce of GM I/c (TS)}]

Sub-Total (A.4) 0.00 0.00 47 th ANNUAL REPORT

53 Contd... MECON 54

Sl. Projects Item no. of Financial Progress Target Project Planned Remarks MECON Limited No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) 5 Skill Development & Livelihood i) "Certifi cation of Prior Learning" in (ii) 0 100 2.00 2.00 Th e project was amended to the project as respect of various Skill of the villagers indicated at Sl. No. A.5 ii). of Adopted villages of Ranchi & Khunti districts of Jharkhand. ii) Skill Development of youths of (ii) 0 100 2.14 2.14 Total project cost of Rs. 4.14 Lakhs was met Adopted villages/other villages etc. from already allocated Rs. 2.00 Lakhs for the at ‘Jharkhand Government Tool project at Sl. no. A.5 i) and additional fund of Room, Ranchi’ (Project Cost : Rs. Rs. 2.14 Lakhs (transferred from Sl No. 4 iv) of 4.14 Lakhs) Other welfare projects/activities; Miscellaneous programmes of List of “On-Going Regular Projects” under Implementation for FY 2019-20. Project at Sl. No. A.5 ii) was amended and approved by the Board through memorandum of circulation (12/2019-20) No. 11/78/4(3)/32 dtd. 05.02.2020. Th e above was approved by majority of Directors on 09.02.2020. Sub-Total (A.5) 4.14 4.14 B. Additional New Projects 1 Preventive Healthcare (related to COVID-19 eff orts) i) Sanitization of MECON H.O. Offi ce (i) 0 100 1.70 1.70 Fund provision made in CSR Cell's approval premises, purchase of cleaning note ref. no. 11.R7.9050.(3884) dtd. 30.03.2020 materials, purchase of PPE Kits etc. (Approval for contribution to PM CARES Fund, (COVID-19 related expenses) which was approved by Management Committee during their meeting on 30.03.2020)

Contd... Sl. Projects Item no. of Financial Progress Target Project Planned Remarks No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) ii) Sanitization & Cleaning activities of (i) 0 100 1.50 1.50 Fund provision made in CSR Cell's approval Ispat Hospital (MECON's Township note ref. no. 11.R7.9050.(3884) dtd. 30.03.2020 Hospital), Shyamali Colony (Approval for contribution to PM CARES Fund, (COVID-19 related expenses) which was approved by Management Committee during their meeting on 30.03.2020) Sub-Total (B.1) 3.20 3.20 2 Projects for Divyangs i) Providing Vehicle to Jharkhand (ii) 0 100 5.00 5.00 Vehicle: Maruti EECO, BS-VI Parents Association, Ranchi for Project at Sl. No. B.2 i) was approved by the facilitation of conveyance of Board in its 239th Board Meeting held on Divyangs to "KOSHISH" - A Special 30.01.2020 vide Item No. 239/4113." School-cum- Vocational Training Centre ii) Renovation of Roof & False Ceiling (ii) 0 100 10.50 10.50 Project at Sl. No. B.2 ii) was approved by the alongwith Illumination facilities Board in its 239th Board Meeting held on etc. of Dinning Hall-cum-Candle 30.01.2020 vide Item No. 239/4113. Making Section of Cheshire Homes India, Ranchi (A Home for Physically challenged Persons - Divyangs) iii) Renovation of Printing Section (ii) 0 100 16.25 16.25 Project at Sl. No. B.2 iii) was approved by the

Building of Cheshire Homes India, Board in its 239th Board Meeting held on 47 th

Ranchi (A Home for Physically 30.01.2020 vide Item No. 239/4113. ANNUAL REPORT challenged Persons - Divyangs) Sub-Total (B.2) 31.75 31.75 55 Contd... MECON 56

Sl. Projects Item no. of Financial Progress Target Project Planned Remarks MECON Limited No. Schedule- (%) in FY 2019-20 Cost Expenses VII From To (in Rs. on New Lakhs) Projects of 2019- 20 (In Rs. Lakhs) 3 Relief from Emergency or Distress Situation i) Contribution in PM CARES Fund (viii) 0 100 275.00 275.00 Rs. 2.00 Lakhs from Project at Sl. No. A.3 i), Rs. (Prime Minister’s Citizen Assistance 12.50 Lakhs from Project at A.4 i) and remaining and Relief in Emergency Situations amount of Rs. 260.50 Lakhs from Sl. No. 4 iv) Fund) to deal with COVID-19. 'Other welfare projects/activities; Miscellaneous programmes' was transferred to PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund) (As per directive of Ministry of Steel issued vide their E-mail dtd. 29.03.2020 regarding transfer of 'Unspent amount of CSR Budget' to PM CARES Fund for COVID-19 eff orts). Project at Sl. No. B.3 i) was approved by the Management Committee during their Meeting on 30.03.2020 {Refer Note ref. no. 11.99.21/4 dtd. 30.03.2020 of Offi ce of GM I/c (TS)} [Based on CSR Cell's approval note ref. no. 11.R7.9050. (3884) dtd. 30.03.2020." Sub-Total (B. 3) 275.00 275.00 TOTAL 321.34 321.34 ANNEXURE - I Manner (Details of the Project) in which the amount spent during the Financial Year 2019-20 (Period April’2019 – March’2020) (As on: 31.03.2020)

1 2 3 4 5 6 7 8 9 Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads 1. Nutrition i) Nutrition project for poor/ Nutrition 1. Adopted Village-Pancha, 5,00,000 3,44,800 3,44,800 Direct Work complete. down-trodden/needy children of Block - Bundu, Dist - No. of Children covered : 234 Adopted villages / other villages/ Ranchi under-developed/ slum areas etc. 2. Adopted Village-Sungi, of Ranchi & Khunti districts of Block - Karra, Dist - Khunti Jharkhand. 3. Children of Outreach Program of Township School, Shyamali, Ranchi 4. Children of Play School, 47 Shyamali, Ranchi th Sub-Total (1) 5,00,000 3,44,800 3,44,800 ANNUAL REPORT 57 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 58

ii) Project SMILE : Cleft Lip and Palate Healthcare At Visakhapatnam, A.P. 3,50,000 3,40,000 3,40,000 Akila Work complete. Surgery for poor/ downtrodden/ through Akila Bharatha Mahila Bharatha No. of Patients : 20 needy patients Seva Samaja, Koramangala, Mahila Bangalore, Karnataka Seva (Approved Project of FY 2018-19) Samaja, Bangalore

3. Sanitation (Swachh Vidyalaya – Swachh Bharat Abhiyan in MHRD Schools) i) Construction of Toilets in MHRD Infrastructure 10 nos. in Ranchi & Deoghar 96,620 -- 1,80,040 Direct Work complete Schools of Jharkhand (under Development districts of Jharkhand (FY 14-15) + a) Physical progress – Swachh Vidyalaya Abhiyan) Programme - 46,22,850 100% [Project Cost : (Toilets) : Sanitation (FY 15-16)+ b) Financial progress – ` 57,33,000/-] 8,33,490 98.31% (Carry-over project of FY 2015- (FY 16-17) c) Performance Certificate 16) = 56,36,380 awaited from Contractor.

ii) Annual Maintenance of 22 nos. Sanitation 6 nos. in Hazaribagh and 16 1,25,000 -- -- Direct Work under progress. 47

Bio-Toilets/ Purchase of Bio- nos. in Lohardaga Districts of th Work order placed on Party ANNUAL REPORT Media Kit Jharkhand in March’2020. Sub-Total (3) 2,21,620 -- 56,36,380 59 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 60

ii) Construction of Solar based Drinking Village – Rai, Panchayat – 7,07,000 -- -- Direct Work under progress. Drinking Water System in Adopted Water Fudi, District – Khunti, State - Boring work and Civil Village Jharkhand foundation work (for (Project Cost : ` 7,06,845/-) Structural platform) under progress. (Approved project of FY 2018-19)

iii) Construction of Solar based Drinking Village – Rupru, Block – 11,00,000 -- -- Direct In advanced stage of Drinking Water System in Adopted Water Angara, District – Ranchi, State Tendering Village - Jharkhand

Sub-Total (4) 25,14,000 -- --

*Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. 1 2 3 4 5 6 7 8 9 Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads 5. Education i) Free Literacy programme for the Education Vill.-Pokhar Toli, Irgoo Toli (2 Direct Regular on-going project under privileged children at 7 nos.), Argora, Ravidas Mohalla, 3,28,000 a) Physical progress – Community Education Centres Bharam Toli in proper & near 100% • Honorarium to Teachers Ranchi &Vill. – Rai of Khunti 2,52,000 2,52,000 b) Financial progress – • Honorarium Arrear to Teachers district of Jharkhand 18,000 18,000 100% (Apr.’19 & May’19) • Adjustment of Honorarium 36,000 36,000 (Feb.’19 & Mar.’19) • Adjustment of Honorarium 52,000 52,000 (Apr.’17 & May’17) Sub-Total (5) 3,28,000 3,58,000 3,58,000 6. Skill Development & Livelihood i) Free Stitching training for under Women Mani Tola, Doranda Mistri 4,73,000 Direct Regular on-going project privileged women at 7 Stitching Empower- Mohalla, Hinoo, Argora, Physical progress – 100% Training Centres ment Scheme Kishoreganj, Jagannathpur in Financial progress – 100% • Honorarium to teachers (Employment/ proper & near Ranchi & Vill 2,17,000 2,17,000 • Honorarium Arrear to Teachers Livelihood – Sungi of Khunti district of 14,000 14,000 • Adjustment of Honorarium Enhancing Jharkhand. 28,000 28,000 (Feb.’19 & Mar.’19) Vocational 47 th

• Expenses on Stitching Material/ Skills) 12,070 12,070 ANNUAL REPORT items for Annual Examination (FY 2018-19 batch) • Annual Examination Fee to UIL 40,110 40,110 (FY 2018-19 batch) 61 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 62

1 2 3 4 5 6 7 8 9 MECON Limited Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads ii) Vocational Training of Youths Employment/ Jharkhand Government Tool 4,14,000 2,07,000 2,07,000 Direct Training under progress. of Vill- Sungi, Dist.- Khunti Livelihood Room, Tatisilwe, Ranchi No. of Trainees = 6 (Jharkhand) (In Welding Enhancing Technician) Vocational Skills Sub-Total (6) 8,87,000 5,18,180 5,18,180 7. Social Welfare i) Construction of Community Centre Infrastructure Akbarpur, Dist.-Kanpur Dehat, 27,00,595 -- 6,11,370 M/s HSCL Construction work under (Project cost: ` 40,55,205) Development State – U.P. (FY 13-14)+ [A progress (Carry-over project of FY 2013- Programme 57,450 Subsidiary a) Work done upto Roof 14) (FY 15-16)+ of NBCC level. Start date : 07.06.2013 6,62,930 (India) b) Physical progress – 61.79% Completion date : 06.04.2014 (FY 16-17)+ Ltd.] c) Financial progress – (10 months) 22,860 33.40% (FY 17-18) d) Anti-Profiteering = 13,54,610 document awaited from M/s HSCL e) Bills awaited from M/s HSCL. f) Balance work : Doors, Stair’s Railing, Plumbing, Sanitary, Plastering, Electrical, Painting, Septic tank, Soak Pit, Boundary wall, Gate, etc. *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. 1 2 3 4 5 6 7 8 9 Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads ii) Construction of Bore well at Old Drinking Vihar Samaj Kalyan Sansthan, 3,06,000 -- -- Direct Boring work was carried Age Home Water Village – Kulgu, Block – Nagri, out in April’2019 and the District – Ranchi, State - pumping system was (Project cost: ` 3,05,660/-) Jharkhand installed. However, as the (Approved Project of FY 2017-18) area is boggy, the Borewell failed. The Contractor was advised to carry out fresh Boring at new location. The Contractor is yet to complete the work due to non- availability of DTH Boring machine in Jharkhand. iii) Construction of Boys Hostel in Infrastructure Village – Sungi, Block – Karra, 34,96,000 10,14,860 10,14,860 Direct Construction work under Orphanage “Anmol Basera” Development District – Khunti, State - progress. Programme Jharkhand (Project cost: ` 34,96,160/-) a) Work done upto roof level. (Approved Project of FY 2015-16) b) Physical Progress - 60% c) Financial Progress – 28.79% 47

d) Balance work : Plastering, th ANNUAL REPORT Doors, Plumbing, Electrical, Painting, Gate, etc. 63 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 64

v) Renovation of Roof & False Ceiling Project for Cheshire Homes India, Bariatu, 10,50,000 -- -- Direct In advanced stage of alongwith Illumination facilities Divyangs Ranchi, State - Jharkhand Tendering etc. of Dining Hall-cum-Candle Making Section (Project cost: ` 10,50,000/-)

vi) Renovation of Printing Section Project for Cheshire Homes India, Bariatu, 16,25,000 -- -- Direct In advanced stage of Building Divyangs Ranchi, State - Jharkhand Tendering (Project cost: ` 16,25,000/-) Sub-Total (7) 96,77,595 10,14,860 23,69,470

*Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. 1 2 3 4 5 6 7 8 9 Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads 8. Rural Development i) Construction of 3 nos.Toilet Infrastructure 1) Village Residential 46,78,195 3,30,835 18,27,745 Direct 1) Village School – Work complexes Development School (Pranavanand (FY 12-13) + complete. (Total Project cost: ` 1,60,34,715) Programme Vidya Mandir), Pancha– 37,31,740 a) Physical progress – 100% (Carry-over projects of FY 2012- - Sanitation (14-seater toilet) (FY 13-14) + b) Financial progress – 100% 13) 2) Village – Pancha (10-seater 7,65,200 c) All bills have been Start date : 08.03.2013 toilet) (FY 14-15) + processed and payment (LOI) 3) Village –Parsa Toli, Pancha 37,52,600 released. Completion date : 07.09.2013 (10-seater toilet) (FY 15-16)+ d) LD amount withheld. (6 months) All the above are in Block – 5,01,735 2) Vill.- Pancha – Work (As per Work Order) Bundu, Dist – Ranchi, State - (FY 16-17)+ complete. a) Physical progress – 100% Jharkhand 8,23,090 b) Financial progress – (FY 17-18)+ 100% 3,30,835 c) All bills have been (FY 19-20) processed and payment = 1,17,32,945 released. d) LD amount withheld. 3) Vill – Parsa Toli a) Physical progress – 70.18% b) Financial progress – 47 th

46.95% ANNUAL REPORT c) Balance work: Plumbing, Sanitary, Electrics, Finishing, Solar PV System, etc. 65 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 66

*Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. 1 2 3 4 5 6 7 8 9 Sl. CSR Projects or activity identified Sector in Projects or Programmes Amount Amount spent on Cumulative Amount Status of the Project No. which the outlay the projects or expenditure upto spent: 1. Local area or Others Project is (Budget) programmes for the reporting Direct or covered 2. Specify the state and Project or FY 2019-20* period through district Programme imple- Sub-heads : wise menting (where projects or programmes 1. Direct agency were undertaken) expenditure on projects or programmes 2. Overheads iv) Construction of a Classroom at Infrastructure Village-Raigaon, Dewariya 2,02,135 -- 3,54,700 M/s HSCL Some Electrical work, glass Madarsa Ahle Sunnat Development Alawal, Dist-Gonda, State – (FY 13-14) + [A fitting, floor repair, painting (Project cost : ` 7,60,677/-) Programme – U.P. 2,03,840 Subsidiary of grill, window & building, (Carry-over project of FY 2012- Construction (FY 14-15) of NBCC etc is pending. 13) of Classroom =5,58,540 (India) a) Physical progress – 95% Start date : 27.11.2012 Ltd.] b) Financial progress– Completion date : 31.03.2013 73.43% (4 months) c) Anti-Profiteering (As per Work Order) document awaited from M/s HSCL. v) Construction of Toilet Complex Sanitation Village – Bar Toli, Pancha, Block 20,66,830 -- -- Direct a) Work done upto Roof (8-Seater toilet) – Bundu, Taimara, District - level. (Project cost: ` 20,66,830/-) Ranchi b) Physical progress – 20% (Approved Project of FY 2018-19) c) Financial progress– NIL d) 1st RA Bill awaited from Contractor. d) Balance work: Plastering, Flooring, Plumbing, Borewell, Doors, Windows, Sanitary, Electrics, Finishing, Solar 47 th

PV System, etc. ANNUAL REPORT Sub-Total (8) 93,66,830 17,98,005 1,84,33,395 67 *Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. MECON 68

*Note for Column 6 – All expenditures are Direct except shown under Sl.No. 10 & 11. 47th ANNUAL REPORT

ANNEXURE – I TECHNOLOGY ABSORPTION Efforts made and benefits derived like product improvement, cost reduction, product development or import substitution I. Indigenously developed Technology

Sl. Efforts made towards technology Benefits derived like product improvement, cost No. absorption reduction, product development

1 Traditionally, earlier load shedding was a. Saves the Blast furnace and Coke oven batteries from based on rather static or rotational strategies, complete shutdown and thereby a significant costs however, with the implementation of incurred from box up and start-up of the plant. indigenous power based smart load shedding b. Continuous production of coke and hot metal without technology in the steel plant would provide interruption. uninterrupted power in case of islanding so that the generated power can be transmitted and distributed to category or emergency loads of the steel plant and continue the production / take a safe shutdown of the plant. The planned schedules ensures that consumers or parts of the network have power as opposed to a total blackout. Thereby, use of control energy ensures that system runs at optimal efficiency.

2 Establishment of Structural and mechanical Knowledge absorption (Indigenous and International) systems for Semi Cryogenic Integrated towards explosion proof norms and improvement in Engine Testing Facility, IPRC-ISRO, equipment safety standards Mahendragiri, Tamil Nadu Reduction in failure modes Design & Development, supply and Increased human safety by most economical and fail installation of explosion/ flame proof proof emergency evacuation system where evacuation equipment time is very less because of the explosive atmosphere Design of equipment for mission critical application Design, development & installation of first of it's kind escape chute system for emergency evacuation in industry Note : The rocket engine testing area is highly flammable and explosive.

69 MECON MECON Limited

Sl. Efforts made towards technology Benefits derived like product improvement, cost No. absorption reduction, product development

3. Waste heat recovery system from sinter In sintering process, sinter is cooled in straight line or cooler off-gas in iron ore sintering process circular sinter cooler (from 700-800 deg C to <100 deg C) for generation of steam / power by forcing ambient air through sinter cooler bed by cooler fans. In the process of heat exchange, hot air coming out from cooler remains unutilized and gets dissipated in the atmosphere. Success of effective sinter cooler heat recovery is influenced by certain key consideration / critical aspects viz. present operating parameters of sinter plant, feed rate to sinter cooler, average sinter discharge temperature to cooler, actual thermal profiling of cooler off-gas under varied operating condition, location of cooler fans and air distribution across sinter cooler bed etc. These aspects have been critically analysed along with actual case study and suitable mathematical modeling has been developed with due considerations of above critical aspects to arrive at extent of cooler hood covering, number of tapping points to obtain desired air quantity at required temperature (>300 deg C). This waste heat recovery system can be implemented in existing operating sinter plants and in new sinter plants as well. Benefits: Besides the regular benefits of waste heat recovery from sinter cooler hot off-gas for steam / power generation, other benefits are less emission of Green house gases to the atmosphere, no additional burning of fuel in steam generation, restriction of venting of hot air directly to atmosphere.

II. Imported Technology

Sl. Efforts made towards technology Benefits derived like product improvement, cost reduction, No. absorption product development

NIL NIL

70 47th ANNUAL REPORT

ANNEXURE-II MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1.0 INTRODUCTION Management’s resolve to tread on the path of profitability has borne fruit and MECON has been able to achieve its highest ever order booking of more than ₹4,900 crore in the financial year 2019-20. In order to hedge the risks due to cyclic swings in the metals business, the company has strategized to strengthen its operations in non-core business areas e.g. Energy & Infrastructure. Transcendence of operation from its core competence area of metals & mining to areas like Energy & Infrastructure sector has been seamless, owing to the expertise and capabilities gained through the last 6 (six) decades of its operation. The company is also focusing on delivering projects through EPC & Deposit Works mode, in addition to its conventional portfolio of Consultancy & Project Management Services for providing impetus to both its top and bottom lines. The company is looking forward to harness the opportunities unleashed by manifold investment plans aligned with National Missions & Plans viz. National Steel Policy, Make in India, Jal Jeewan Mission, Power for All, IPDS, DDUGJY, Urja Ganga, Swachh Bharat, Digital India, etc. and has also endeavored to render services to its valued clients in new / emerging areas by partnering with global technology providers. MECON is striving to emerge as a Design, Engineering, Consultancy & EPC Contracting organization to drive indigenization efforts and give impetus to “Atmanirbhar Bharat” Abhiyan of Govt. of India. The organization is also moving on the path to become a global centre of excellence for providing innovative & cost effective engineering and technological solution to its clients across the world. 2.0 SWOT ANALYSIS Strengths 1. Multi-disciplinary experienced and capable pool of engineers / technologists in various specialized technical disciplines. 2. Vast knowledge repository and reference materials, being a legacy design, engineering & consultancy organization. 3. Core competency in providing end to end solutions in the area of Metals & Mining with established market recognition. 4. Capability in equipment & system design and supply & execution in Ferrous area. 5. Prominent presence in gas pipelines project of GAIL (Long Distance Pipe Line & City Gas Distribution etc.) 6. In-house Environmental Engineering Laboratory. NABET/ QCI Accreditation for 16 sectors. 7. Relatively low average age of employee due to Induction of young professionals. 8. Good credentials with financial institutions and regulatory authorities. 9. Wide network of offices at various locations across the country. 10. MOU with global technology providers to provide end to end solution in the entire value chain of steel sector. Weaknesses 1. High incidence of employee benefit expense as compared to some of the competitors, especially in the private sector. 2. Depletion of critical knowledge / skills in certain areas on account of superannuation / separation of experienced manpower. 3. Skewed organization structure (Still under transition).

71 MECON MECON Limited

4. Inadequate experienced manpower for execution activities at project sites. 5. Consolidation of strength in diversified sectors may take some more time. 6. Very limited presence in the overseas market. 7. Public sector limitation in operational flexibility. Opportunity 1. Indigenous opportunity through Atmanirvar Bharat Abhiyan of GOI 2. Anticipated future investments in mining, beneficiation, agglomeration / pelletisation, slurry transportation, coal washeries and coal gasification 3. Possible future investment in Steel sector in view of the National Mission of 300 Mt Crude Steel Capacity by 2030-31. 4. Large scale investments in other diversified sectors viz. oil & gas, infrastructure & strategic sectors and power transmission & distribution & renewable energy sector 5. Leveraging past experience in defence sector to harness new opportunities emanating with the opening of Defence Production sector for participation of private sector (FDI raised to 74% from earlier 49%), defence offset policy and through indigenisation in defence sector. 6. Expansion in ports, power and mining sector are expected to offer associated Material Handling Projects and the Company expects to generate business from this sector, both on its own credentials and also through joint participation with other Companies. 7. Opportunities from Govt. Flagship schemes such as, Deen Dayal Upadhaya Gram Jyoti Yojna (DDUJGY), Integrated Power Distribution System (IPDS), Jal Jeevan Mission, Bharat Net, Digital India etc. Threats 1. Mushrooming of consultancy companies operating at low margins. 2. Presence of Indian set-up of all major MNCs like SMS, Siemens, Danieli, Kobe Steel, etc providing comprehensive services including engineering. Private sector, in particular, opting for engineered packages from the turnkey suppliers, with limited engagement of external consultants. 3. Stringent technical pre-qualification criteria for consultancy as well as supply jobs 4. Decline in investment in the core area of Metals accentuated by COVID-19 impact but continued dependence on Metals sector 5. Uneven playing ground for public & private sectors 6. Today’s consortium partners emerge as future Competitors 7. Risk/uncertainty in foreign strategic Tie-ups 8. Long approval process along with delays in infrastructure sector may impact the overall opportunity in the sector. 9. Delays in statutory clearances, land acquisition and R&R issues. 3.0 BUSINESS OUTLOOK Global Economic Scenario As per the IMF’s recent report on world economic outlook, trade policy uncertainty (protectionist tendencies of China and USA), geopolitical tensions ( between USA-Iran), and idiosyncratic stress in key emerging market economies continued to weigh on global economic activity—especially manufacturing and trade—in the second half of 2019. Intensifying social unrest in several countries posed new challenges, as did weather-related disasters— from hurricanes in the Caribbean, to drought and bushfires in Australia, floods in eastern Africa, and drought in southern Africa. In the third quarter of 2019, growth across emerging market economies (including India, Mexico, and South Africa) was weaker largely due to country-specific shocks weighing on domestic demand. The advanced economy group slowed broadly as anticipated (mostly reflecting softer growth in the US after several quarters of

72 47th ANNUAL REPORT above-trend performance). Despite continued job creation (in some cases, in the context of unemployment rates already at record lows), core consumer price inflation remained muted across advanced economies. It softened further across most emerging market economies amid more subdued activity. Weak demand lowered metals and energy prices, which kept a lid on headline inflation. On the positive side, market sentiment has been boosted by tentative signs that manufacturing activity and global trade are bottoming out, a broad-based shift toward accommodative monetary policy, intermittent favorable news on US-China trade negotiations, and diminished fears of a no-deal Brexit, leading to some retreat from the risk-off environment. Service sector activity on the other hand weakened somewhat but remained in expansionary territory, supported by still-resilient consumer spending—which, in turn, helped maintain tight labor markets, low unemployment, and modestly rising wages. As a result for this development, global growth, estimated at 2.9 percent in 2019, was projected to increase to 3.3 percent in 2020. However, COVID-19 pandemic is going to put a stall over the global economic growth for the 2020. The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020 the deepest global recession in eight decades, despite unprecedented policy support. While the ultimate growth outcome is still uncertain, and an even worse scenario is possible if it takes longer to bring the health crisis under control, the pandemic will result in output contractions across the vast majority of emerging market and developing economies (EMDEs) Indian Economic Scenario As in other major economies, India’s Gross Domestic Product (GDP) growth also correlates with the growth of global output. Not surprisingly, the deceleration in India’s GDP growth since 2017 has tracked the decline in world output. In July 2019, the Union Budget 2019-20 had articulated The vision of the Hon’ble Prime Minister to make India a US $ 5 trillion economy by 2024-25. The march towards this milestone has, however, been challenged by less than expected growth of India’s GDP so far this year, on the back of a decline in world output. Yet, given India's record of growth with macroeconomic stability over the last five years (annual average growth rate of 7.5 per cent and annual average inflation of 4.5 per cent), the economy is poised for a rebound towards the US$ 5 trillion goal. As per the recent data released by National Statistical Office (NSO), real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019- 20 is now estimated to attain a level of Rs.145.66 lakh crore, as against the First Revised Estimate of GDP for the year 2018-19 of Rs.139.81 lakh crore, released on 31st January 2020. The growth in GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19. On the supply side, the deceleration in GDP growth has been contributed generally by all sectors other than ‘Agriculture and allied activities’ and ‘Public administration, defence, and other services’, whose growth in 2019-20 was higher than growth of 2018-19. On the demand side, the deceleration in GDP growth was caused by a decline in the growth of real fixed investment in 2019-20 when compared to 2018-19 induced in part by a sluggish growth of real consumption. However, growth of real consumption started picking up in later half of 2019-20, mostly driven by a significant jump in government final consumption. Growth of private final consumption expenditure also picked up during the same period. The import figure for the FY 2019-20 was Rs 42,98,950 crore vis-a-vis Rs 44,68,166 crore for the FY 2018-19 whereas export figure for the FY 2019-20 was Rs 37,45,473 crore vis a vis Rs 37,66,294 crore for the FY 2018-19 at current price basis. It is evident that the contraction of exports was much smaller than contraction of imports. Lower growth of GDP and softer price of crude oil caused a large contraction of imports. BUSINESS PROCUREMENT Total ₹ in Crore

Sl. 2018-19 2019-20 SBU No. Consultancy EPC Consultancy EPC 1. Metal 183.41 2832.12 85.55 3965.77 2. Energy 72.11 Nil 683.40 Nil 3. Infrastructure 104.11 Nil 28.33 166.81 Total (₹) 359.63 2832.12 797.28 4132.59 Grand Total (₹) 3,191.75 4,929.87

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4.0. INTERNAL CONTROL SYSTEMS AND ADEQUACY THEREOF Your Company not only has a proper and adequate system of internal control and proper documented procedure encompassing all financial and operating functions but also a history and tradition bequeathed since inception. These have been planned to provide reasonable accuracy for maintenance of proper accounting and adequate control to monitor and to govern the company’s fund, to optimize internal resources for increasing operational efficiency, to secure assets from unauthorized use and to ascertain reliance on financial and all other operational information. The company has undertaken unified untiring team effort to achieve the best possible state-of-the art system. Salient facets of the internal control system are: ¾¾ An in-house internal audit team is responsible for reviewing the established internal control systems at place within the organization. To maintain its objectivity and independence, the Internal Audit Section reports directly to the Chairman and Managing Director. ¾¾ The company has an extensive programme of carrying out internal audits, management and financial reviews to ensure greater efficiency, transparency and accountability. ¾¾ Quarterly Internal Audit reports comprising of significant audit observations and follow-up actions thereon are placed before the Audit Committee for their consideration and review. ¾¾ Well defined delegation of power with sanctioning limits for purchasing of capital items and approving of revenue expenditure. ¾¾ Well planned budget for capital & revenue expenditure and continuous monitoring. ¾¾ Keeping with various regulatory changes, guidance issued by authorities and for bringing uniformity in the process flow of work and strengthening control mechanism, a more robust and efficient Purchase and Disposal Procedure, 2019 have been adopted since January, 2020. ¾¾ Well framed Establishment Manual and Service Rules to codify rules and policies governing service conditions of employees. ¾¾ Well codified Apex Quality Manual for ensuring quality of services provided and goods sold for executing EPC jobs. ¾¾ Periodical meeting at all functional levels and also at corporate level for reviewing and achieving the targeted results. ¾¾ With implementation of online information system starting from raising of invoices to collection of money, the entire system has been made more effective in terms of furnishing factual information in shortest possible time. ¾¾ Well defined plan to invest surplus fund most judicially and reporting thereof to the Apex management regularly. 5.0 DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE During the year under review, your Company achieved Turnover of ₹56,117.26 lakh. Turnover from Consultancy Jobs is ₹34,297.72 lakh, mainly from execution of consultancy order for GAIL, NMDC, different Steel Plants of SAIL, etc. Turnover from Consultancy Jobs constituted 61.00% of the total turnover, turnover from Turnkey Projects constituted 27.00% of total turnover and turnover from Procurement Services constituted 12.00% of total turnover. Total turnover has increased by 19.35% over the previous year. During the year, your Company has made Profit After Tax of ₹6,900.43 lakh compared to Profit After Tax of ₹1,374.01 lakh of the previous year. During the year, your Company has earned interest of ₹2,936.53 lakh through term deposits with scheduled banks. The Net Worth of the company has increased by ₹6,900.43 lakh compared to previous year. The highlights of financial performance of the company for the financial year 2019-20 w.r.t. 2018-19 are mentioned below.

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(₹ in lakh) Sl. FY FY Particulars No. 2019-20 2018-19 a) Turnover 56,117.26 47,017.24 b) Revenue From Operations 64,751.47 47,920.36 c) Total Income 69,586.19 53,040.05 d) Purchase of Equipments & Direct Expenses 17,001.94 9,070.36 e) Employee Benefit Expenses 30,228.81 28,822.45 f) Other Expenses 11,842.56 11,249.08 g) Profit / (Loss) Before Tax 8,703.40 997.44 h) Profit / (Loss) After Tax 6,900.43 1,374.01 i) Total Comprehensive Income 5,778.19 1,214.64 j) Property Plant & Equipments (Gross) 16,367.63 16,076.24 k) Intangible Assets (Gross) 1,607.65 1,509.81 l) Financial Assets (Current and Non Current) Investment 11.92 11.92 Trade Receivables 46,307.99 44,586.11 Loans 1,087.11 986.90 Cash and Bank Balance 41,301.36 54,142.29 Other Financial Assets (Excluding Bank Balance) 6910.57 8,153.36 m) Other Assets (Current and Non Current) 29,563.83 28,410.72 n) Financial Liabilities (Current and Non Current) Trade Payables 16,795.44 18,655.13 Other Financial Liabilities (Current and Non Current) 33,195.56 28,393.69 o) Other Liabilities (Current and Non Current) 7,664.10 13,618.74 p) Net Worth 43,348.61 36,448.18 q) Share Capital 4,013.84 4,013.84 r) Capital Employed 30,939.67 25,696.12 6.0 HUMAN RESOURCE DEVELOPMENT In a knowledge-based company, Services, Processes and Business Models can be copied, but the organizational competence i.e. the Human Capital is unique in nature. In view of this the management lays emphasis to focus and sustain a competent and highly responsive workforce with adequate domain expertise. Projects being the centre of our delivery mechanism, workshops and trainings were arranged on Selection of Technology & Product Mix, Contract Closure and Contemporary trends in Project Management. To bring about an overall development of our future leaders, to enable them to unleash potential necessary business impact along with technical capabilities augmentation, management organized training in Soft Skills, Personality and Senior Leadership Development program. With regards to Talent Management and Career Progression, employees were also deputed to various Centre of Excellences under MDP programs, technical programs and DPE’s Research development and Consultancy scheme such as Leadership and Enablers of achieving business excellence, Public Procurement through E- Procurement and GeM portal, Managing Foreign Currencies Risk and Understanding Global Finance, HR Analytics, Mergers, Acquisitions and Restructuring, Training on Steel Making & Secondary Refining, Training on Welding Technology and Equipment, City Gas Distribution in India, Leadership Development program for Women Executives and Web-based training programs. 7.0 TECHNOLOGICAL UP-GRADATION Through its 6(six) decades of experience in the development and expansion of Integrated Steel Plants as well as other business verticals, your Company has been able to build a strong technological base and has acquired, absorbed & innovated state-of-the-art technologies to suit various requirements. Technological & Engineering excellence achieved through above process is up-graded on continuous basis during execution of various projects

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in association with industry leaders. License agreements and general collaboration / cooperation agreements with organisations sharing common business interests is providing an impetus for the Company to strengthen its business verticals by carving out market share. Such initiatives are complementing knowledge acquisition / up-gradation in addition to building-up database for focussed business areas with the aim to bridge the identified technology gaps. Measures adopted to work towards technology self-reliance include: Exposure to Global Technologies & Benchmarks Maximization of indigenization through creation of special design cell. Technology development efforts for Stamp Charge Coke Oven technology. Exploring global partners for new / potential business areas Aligning internal resources to cater to new areas Engagement of domain experts to complement in-house expertise In-house Research & Development Need based training- both In-house & outside and participation in seminars / technology fairs Use of modern tools for analysis, design, modeling & drafting Cost effective operations achieved through higher reliance on state-of-the-art software tools 8.0 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY DEVELOPMENT (CSR & SD) As per Section-135 of The Companies Act, 2013, Average Net Profit of your Company for the preceding three financial years (i.e. FYs 2016-17, 2017-18 & 2018-19) was negative. Thus, as per the Companies Act, 2013 there was no allocation, as 2% of Average Net Profit was NIL. However, as per DPE Guidelines, 2% of Adjusted PBT for FY 2018-19 was allocated as CSR fund, i.e. Rs. 19.92 Lakh. Your Company has taken a forward step in line with DPE’s common theme – School Education, Healthcare & Nutrition and took-up the projects in Adopted Villages / Other places of Ranchi & Khunti districts of Jharkhand, which are the Aspirational Districts (As identified by NITI Aayog). In addition, as per the request of TADP Cell (Transformation of Aspirational District Programme), Ranchi (working under the Deputy Commissioner-cum-District Magistrate, Ranchi), a CSR project on ‘School Education’ was selected for execution in Ranchi district. Further, as per directive of Ministry of Steel, your Company contributed a significant amount to PM CARES Fund to deal with the Emergency / Distress situations due to COVID-19 pandemic. The various projects / activities undertaken under its CSR & Sustainability Policy during FY 2019-20 are given in Appendix-II to the Director’s Report. Keeping pace with the Govt. of India’s Mission of Swachh Bharat, the Company has carried out various activities / programmes under “Swachh Bharat Abhiyan” for highlighting the benefits of Swachhata. Awareness programme & Cleanliness drive were carried-out in Adopted Villages under “Swachhta Pakhwada” Campaign. Your Company has organized program for ‘Women Empowerment’ through Promotion of Usage of Steel titled “Ispat – Naari Ke Saath” :: “Naari Shakti – IspatiIraada” in Adopted Villages, wherein Lectures / Talk were delivered on “Usage of Steel with respect to Disadvantages of using Plastic”. Your Company has organized “Healthcare & Nutritional Supplementation programmes”, on Monthly basis for poor / down-trodden / needy children of Adopted villages of Ranchi & Khunti districts; Outreach children & Play school children of Township Schools, Ranchi. Your Company has conducted Sports under “Fit India Movement” for inculcating physical activity in the daily life of Village School Children of Adopted Villages. The Management of your Company always lays thrust upon timely completion of the CSR projects / activities so that its benefit is passed on to the end user. Moreover the Management also lays emphasis, that regular ongoing schemes such as Free Literacy programme in Community Education Centres, Free Stitching Training under Women Empowerment Scheme, Free Health Camps through Mobile Ambulance Van etc. shall also be continued to keep CSR & Sustainability activity of the Company alive even when there is less or no allocable budget available. 76 47th ANNUAL REPORT

ANNEXURE-III REPORT ON CORPORATE GOVERNANCE

1.0 COMPANY’S PHILOSOPHY The Company’s Corporate Governance practice is based on the principles of integrity, fairness, equity, transparency, accountability and commitment to values that governs relationship with all its stakeholders and attaining maximum level of enrichment of the enterprise. The said practice of Corporate Governance stem from its professionalism. Your Company lays emphasis on the proper conduct of its activities and enhance the value of all those who are associated with the Company viz. Shareholders, Customers, Vendors, Government of India, Ministry of Steel, Department of Public Enterprises, various State Governments, other Government Agencies / Departments and the society at large. 2.0 BOARD OF DIRECTORS Your Company being a Central PSU, appointment / nomination of all Directors is done by the President of India through the Ministry of Steel. The Chairman and Managing Director and Functional Directors are appointed by the Government of India, Ministry of Steel for a period of five years or till the age of superannuation or until further orders whichever is earlier. Part-time Independent Directors are normally appointed for a tenure of three years. Articles of Association of the Company stipulate that the number of Directors shall not be less than five and not more than thirteen. The composition of the Board is as per DPE Guidelines on Corporate Governance. Composition of Board of Directors

Sl. Sanctioned Actual position as on Particulars of Directors No Strength 31.03.2020 i. Functional Directors including CMD (WTD) 5 5 ii. Part-time Government Directors 2 2 iii. Part-time Independent Directors 3 2 Total 10 9 2.1 Terms & Conditions of appointment of Board Member: The terms, conditions and tenure of appointment of all Board Members are decided by the Government of India, Ministry of Steel. 2.2 Remuneration / Compensation to Board of Directors: The Chairman and Managing Director and Whole-time Directors are paid monthly remuneration as fixed by the Government of India. The Company bears all the expenditure of Directors for attending the meetings. Part-time Government Directors are not paid any remuneration. The Part-time Independent Directors are paid sitting fees of ₹15,000/- for attending each Board Meeting and ₹10,000/- for attending each Board level Committee meeting. The details of sitting fees paid to the Part-time Independent Director during F.Y 2019-20 are as follows.

Sitting Fees (₹) Name of Director (Shri/ Smt.) Total (₹) Board Meetings Committee Meetings Sisir Kumar Appikatla 30,000/- 40,000/- 70,000/- Deepak Krishan 90,000/- 1,00,000/- 1,90,000/- Manju Chandra 60,000/- 60,000/- 1,20,000/- 2.3 Board Meetings: The Board meets statutorily and also as many times as may be warranted. The Board Meetings are convened as per the Companies Act, 2013 by giving appropriate advance notice after seeking approval of the Chairman of the Board. Detailed agenda notes are circulated in advance as per the Companies Act, 2013 to the Board Members 77 MECON MECON Limited

for facilitating meaningful, informed and focused decision at the meeting. In case of special and exceptional circumstances additional agenda item(s) is / are also permitted with the consent of Chairman of the Board. The Company Secretary acts as the Secretary to the Board and Board level Committee Meetings. 2.4 Number of Board Meetings: During the year 2019-20, Six (6) Meetings were held, the details of which are given below:

Sl. No. Date of Meeting Board Strength Number of Directors Present 1 20.08.2019 9 9 2 06.09.2019 9 8 3 22.11.2019 8 7 4 18.12.2019 8 7 5 30.01.2020 9 8 6 13.03.2020 7 7 Particulars of Directors including their attendance at the Board Meetings from 1st April, 2019 to 31st March, 2020.

Name of Directors & Designation Number of Meetings Number of Meetings (Shri / Smt.) held attended I. Whole time Directors Atul Bhatt , CMD Six Six P.K. Sarangi, Director (Technical) Six Five Goutam Chatterjee, Director (Commercial) Two Two (upto 31.10.2019) Salil Kumar, Director (Projects) Six Six R.H. Juneja, Director (Finance) Six Six S. K. Verma, Director (Commercial) Two Two (w.e.f 15.01.2020) II. Part-time Government Directors Saraswati Prasad, IAS Five Three (upto 17.03.2020) Rasika Chaube Four Three (upto 22.01.2020) Dr Rohit Yadav, IAS One One (From 22.01.2020 to 25.02.2020) Vijoy Kumar Singh, Nil Nil (w.e.f. 17.03.2020) Rasika Chaube Nil Nil (w.e.f. 17.03.2020) III. Part-time Independent Director Sisir Kumar Appikatla Two Two (upto 12.11.2019) Deepak Krishan Six Six Manju Chandra(w.e.f 08.11.2019) Four Four

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3.0 BOARD COMMITTEES 3.1 Audit Committee The latest reconstituted Audit Committee in place consists of two Part-time Independent Directors and one whole- time Director. The role and powers of the Audit Committee is as per Section 177 of the Companies Act, 2013 as well as the Guidelines on Corporate Governance issued by the Department of Public Enterprises. The Chairman of the Audit Committee is a Part time Independent Director. The present Audit Committee in place as on 31.03.2020 comprises of the following Directors.

Sl. No Name of Directors (Shri./Smt.) Status in Committee 1 Deepak Krishan, Independent Director Chairman 2 Manju Chandra, Independent Director Member 3 R.H.Juneja, Director (Finance) Member Ravi Bambha, Company Secretary Secretary Number of Audit Committee Meetings During the year under review, Six (6) Meetings were held, the details of which are given below:

Sl. No Date of Meeting Member’s Strength No. of Members Present 1 06.09.2019 Three Three 2 22.11.2019 Three Three 3 04.12.2019 Three Three 4 18.12.2019 Three Three 5 30.01.2020 Three Three 6 13.03.2020 Three Three Particulars of Directors including their attendance at the Audit Committee Meetings from 1st April, 2019 to 31st March, 2020

Number of Number of Name of Directors Period Meetings held Meetings attended Shri Sisir Kumar Appikatla, Independent Director 01.04.2019 to One One & Chairman. 12.11.2019 Shri Deepak Krishan, Independent Director, 01.04.2019 to Six Six Member and as Chairman (w.e.f. 18.11.2019) 31.03.2020 Smt. Manju Chandra, Independent Director & 18.11.2019 to Five Five Member (w.e.f. 18.11.2019) 31.03.2020 Shri R.H.Juneja, Director (Finance) & Member 01.04.2019 to Six Six 31.03.2020 3.2 Nomination and Remuneration Committee The latest reconstituted Nomination and Remuneration Committee is in compliance of Section 178 of the Companies Act, 2013 as well as the Guidelines on Corporate Governance issued by the Department of Public Enterprises. The Nomination and Remuneration Committee during FY 2019-20 comprised of the following Directors.

Sl. No Name of Directors (Shri/ Smt.) Status in Committee 1 Deepak Krishan, Independent Director. Chairman 2 Sisir Kumar Appikatla, Independent Director (upto 12.11.2019) Member 3 Rasika Chaube, Government Director (upto 22.01.2020) Member 4 Atul Bhatt, Chairman and Managing Director Member 5 Manju Chandra, Independent Director (w.e.f. 18.11.2019) Member Ravi Bambha, Company Secretary Secretary

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Number of Nomination and Remuneration Committee Meetings: During the year under review, Three (3) Meeting were held, the details of which are given below:

Sl. No. Date of Meeting Member’s Strength No. of Members Present

1 10.07.2019 Four Four

2 20.08.2019 Four Three

2 22.11.2019 Four Four

Particulars of Directors including their attendance at the Nomination and Remuneration Committee Meetings from 1st April, 2019 to 31st March, 2020.

Number of Meetings Number of Meetings Name of Directors Period held attended

Shri. Deepak Krishan, 04.04.2019 to Three Three Independent Director & Chairman 31.03.2020

Shri. Sisir Kumar Appikatla, 04.04.2019 to Two Two Independent Director & Member 12.11.2019

Smt. Rasika Chaube, 04.04.2019 to Three Two Government Director & Member 22.01.2020

Shri. Atul Bhatt, CMD & Member 04.04.2019 to Three Three 31.03.2020

Smt. Manju Chandra, Independent 18.11.2019 to One One Director & Member 31.03.2020

3.3 Corporate Social Responsibility (CSR) and Sustainability Committee In compliance of the provisions of Section 135 of the Companies Act, 2013 read with Guidelines on Corporate Social Responsibility and Sustainability issued by the Department of Public Enterprises, a Board level CSR & Sustainability Committee was constituted. The role and functions of the CSR & Sustainability Committee is as per Companies (Corporate Social Responsibility Policy) Rules 2014. The CSR & Sustainability Committee in place as on 31.03.2020 comprises of the following Directors.

Sl. No. Name of Directors (Shri) Status in Committee

1 Deepak Krishan, Independent Director Chairman

2 P.K. Sarangi, Director (Technical) Member

3 R.H. Juneja, Director (Finance) Member

Ravi Bambha, Company Secretary Secretary

Number of CSR & Sustainability Committee Meetings: During the year under review, Two (2) Meeting were held, the details of which are given below:

Sl. No Date of Meeting Member’s Strength No. of Members Present

1 06.09.2019 Three Three

2 30.01.2020 Three Two

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Particulars of Directors including their attendance at the CSR & Sustainability Committee Meetings from 1st April, 2019 to 31st March, 2020.

Number of Meetings Number of Meetings Name of Directors Period held attended

Shri. Sisir Kumar Appikatla, 01.04.2019 to One One Independent Director & Chairman 12.11.2019 (upto 12.11.2019)

Shri. Deepak Krishan, 18.11.2019 to One One Independent Director & Chairman 31.03.2020 (w.e.f. 18.11.2019)

Shri. P.K. Sarangi, 01.04.2019 to Two One Director (Technical) & Member 31.03.2020

Shri. R.H.Juneja, 01.04.2019 to Two Two Director (Finance) & Member 31.03.2020

4.0 ANNUAL GENERAL MEETING The details of the last three Annual General Meeting of the company are as follows:-

Year Date Time Venue

2016-17 21st Sept., 2017 12.00 Noon OUDH Conference Hall, Hotel Ashok, Chanakyapuri, New Delhi.

2017-18 20th Sept., 2018 2.30 P.M OUDH Conference Hall, Hotel Ashok, Chanakyapuri, New Delhi.

2018-19 30th Sept., 2019 2.10 P.M OUDH Conference Hall, Hotel Ashok, Chanakyapuri, New Delhi.

5.0 DISCLOSURES: 5.1 Related party transactions There are no ‘materially significant related party transactions’ that may have a potential conflict with the interest of Company at large. The details of Related Party Disclosure as per Ind. AS-24 is disclosed under Note 41.10 of the Financial Statement. 5.2 Disclosure of accounting treatment All applicable Indian Accounting Standards issued by the Institute of Chartered Accountants of India are being followed in the preparation of financial statements. The Significant Accounting Policy of the Company is disclosed under Note 2 of the Financial Statement. 5.3 Compliance Certificate A certificate on compliance of applicable laws is placed before the Audit Committee and Board on quarterly basis. 5.4 Code of Conduct The Board of Directors has laid down Code of Business Conduct and Ethics for the Board Members and Senior Management of the Company. The Code is displayed on the website of the Company. All Board Members and Senior Management officials of the company have affirmed their compliance with the code. 6.0 MEANS OF COMMUNICATION Annual Report containing Chairman’s Speech, Directors’ Report, Management Discussion and Analysis Report, Corporate Governance Report, Auditor’s Report, Audited Accounts and other important information are made available on the website of the Company.

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7.0 TRAINING OF BOARD MEMBERS Directors are being nominated, as and when required for the training programme organized by DPE, SCOPE etc. 8.0 WHISTLE BLOWER POLICY The Company has Whistle Blower Policy in accordance with the requirement of Section 177(9) of the Companies Act, 2013 and the same is uploaded on the website of the Company. It is also affirmed that no employee has been denied access to the Audit Committee.

82 47th ANNUAL REPORT INDEPENDENT AUDITORS’ REPORT

To The Members of MECON LIMITED Report on the Audit of the Standalone Financial Statements. Opinion We have audited the accompanying Standalone Financial Statements of MECON LIMITED (“the Company”) which comprises the Balance Sheet as at 31st March 2020, the Statement of Profit and Loss (including other comprehensive Income ), the Statement of changes in Equity and the Statement of Cash Flows for the year ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the Standalone Financial Statements”). 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 (“the Act”) in the manner so required and give a true and fair view in conformity with Indian Accounting Standard prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards ) Rule, 2015 as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31st, 2020, 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 of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone 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 (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Companies Act, 2013 and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s 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 Statements. Emphasis of Matter We draw attention to the following matters in the notes to the Standalone Financial Statements: a) There is substantial rise in accumulated Gross Trade Receivables to ₹56,645.48 Lakhs (Previous Year ₹52,278.81 Lakhs), which is more than the operating revenue excluding deposit work/procurement services of the year. b) Note No. 41.15 with respect to the recognition of revenue against deposit work/procurement services amounting to ₹12,084.39 lakhs ( Previous Year ₹3,031.54 lakhs ) which is included in revenue from operation. c) Note No. 41.21 with respect of accumulated Deferred Tax Assets amounting to ₹8,751.93 Lakhs (Previous Year ₹ 8,240.12 Lakhs ) which shall be recovered against future profit. d) Note No. 41.23 with respect to non provision for pay revision of executive employees w.e.f 01.01.2017 considering the DPE OM dated 03.08.2017 and the financial status of the Company. e) Note No. 41.24 with respect to appeal filed by the company with the Hon’ble Principal District Court, Cuddalore in the matter related to recovery of advance against the bank guarantee. f) Note No. 41.25 with respect to the LD recovered from vendors amounting to ₹ 122.67 Lakhs (Previous year ₹32.91 Lakhs) recognized as income during the year and included in other operating income. g) Note No. 31 with respect of Other Operating Revenue (Provision no longer required written back) amounting to ₹ 6,816.63 Lakhs (Previous Year ₹ 869.17 Lakhs) include amounts derecognised by Management towards provision/liabilities towards expenses for execution of jobs amounting to ₹ 6,236.26 Lakhs (Previous Year NIL). h) The balance confirmations of Trade Receivables as on st31 March 2020 is still awaited. Our opinion is not modified in respect of these matters.

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Key Audit Matters Key Audit matters are those matters that in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone 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 reports.

S. Key Audit Matters Audit Response on Key Audit Matter No

1. Recognition and Measurement of revenue Our audit procedures on adoption of Ind AS 115, Revenue from contracts with Customers (‘Ind AS The revenue standard establishes a comprehensive 115’), the standard on revenue recognition, include framework for determining whether, how much and the following – when revenue should be recognized. This involves certain key judgments relating to identification of Evaluated the design and implementation of distinct performance obligations, determination of the processes and internal controls relating the transaction price, allocation of the transaction to implementation of the new revenue price to identified performance obligations, and recognition standard. the appropriateness of the revenue recognition Evaluated the detailed analysis performed methodology. Additionally, the standard mandates by management across revenue streams by robust disclosures in respect of revenue and periods selecting samples for the existing contracts with over which the remaining performance obligations customers and verified the appropriateness will be satisfied subsequent to the balance sheet date. of identification of distinct performance Refer: Note 2(8) to the Standalone Financial Statement obligations, determination of the transaction of Accounting Policy on Revenue Recognition. price, allocation of the transaction price to identified performance obligations and the appropriateness of the revenue recognition methodology. Evaluated the appropriateness of the accounting policy and disclosures provided under the new revenue standard and assessed the completeness and mathematical accuracy of the relevant disclosures.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the Standalone Financial Statements and our auditor’s report thereon. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained during the course of our audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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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, total comprehensive income, 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 Companies Act, 2013 ( “the Act”) read with the relevant rules issued thereunder. 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 Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the Standalone Financial Statements, the management 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 management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the company’s financial reporting process. Auditor’s Responsibility 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 Standalone 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 Standalone 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 Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial control 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 the Company 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Materiality is the magnitude of misstatements in the Standalone 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 Standalone Financial Statements. We also 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. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2016 (“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 “A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 2. As required by section 143(5) of the Act, the Comptroller and Auditor General of India issued directions and sub-directions. We give our comment thereon vide Annexure “B”. 3. 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. c. The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. d. In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules issued there under. e. In terms of Govt. of India, Department of Companies affairs Notification No. GSR 463(E) dated 5thJune 2015, Govt. Company is exempt from applicability of provision of section 164(2) of the Companies Act, 2013. f. In terms of Govt. of India, Department of Companies affairs Notification No GSR 463(E) dated 5th June 2015, Govt. Company is exempt from applicability of provision 197(16) of the Companies Act, 2013. g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure “C ”. h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, (as amended), in our opinion and to the best of our information and according to the explanations given to us:

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i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 39.1 to the Standalone Financial Statements. ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses if any, on long-term contracts and the Company 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 Company.

For V. Rohatgi & Co Chartered Accountants Firm Registration No: 000980C

Sd/- (Bipul Rastogi) Place: Ranchi Partner Dated: 01.10.2020 M.NO : 072318 UDIN: 20072318AAAAAY6428

87 MECON MECON Limited

“Annexure A” to the Independent Auditors’ Report of even date on Standalone Financial Statements of MECON LIMITED (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section)

(i) In respect of its fixed assets: a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets except in respect of some cases wherein the fixed assets register and records are in the process of updation. b) The fixed assets of the Company have been physically verified by the management. In our opinion, the period of verification is reasonable having regard to the size of the Company and the nature of its business. c) The title deeds of the Immovable Properties are held in the name of the Company as certified by the management except Deed of conveyance of Land at Ranchi, measuring 10.25 acres, valued for ₹ 2.69 lakhs, which is pending since long for execution by the Government of Jharkhand. The office building at Scope Minar, Delhi have been acquired on contribution basis without ownership title deed. (ii) In respect of physical verification of Inventory: a) The inventories have been physically verified by the management during the year. b) In our opinion and according to the information and explanations given to us, the procedure for physical verification of inventories followed by the management are generally reasonable and adequate in relation to the size of the Company and the nature of its business. c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventory. No material discrepancies have been noticed on verification between the physical stocks and the book records. (iii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013 and hence clause (a) to (b) is not applicable to the Company. (iv) In our opinion and according to the information and explanations given to us, the Company has not given any loans and guarantees and not made any investments in respect of Section 185 & 186 of the Companies Act, 2013. (v) In our opinion and according to the information and explanations given to us, the Company has not accepted any public deposits during the year hence clause (v) is not applicable to the Company. Accordingly, the directives issued by the RBI and provisions of Sections 73 to 76 or any other relevant provisions of the Act and rules framed there under are not applicable. (vi) According to the information given to us, the Central Government has not prescribed maintenance of cost records under section 148(1) of the Act. (vii) According to the information and explanations given to us in respect of statutory and other dues: a) The Company has generally been regular in depositing undisputed statutory dues, in respect of Provident Fund, Employee’s State Insurance, Income-tax, Goods & Service Tax, Customs duty, Excise Duty, Cess and other material Statutory dues with the appropriate authorities. b) According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became payable, as per books of accounts as at 31st March, 2020. c) According to the information and explanations given to us, there are disputed statutory dues, which have not been deposited as at 31st March, 2020, as given herein below:

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Period Amount Name of the Statute to which Forum (₹ in Lakhs) relates 1999-2000 STAT, Andhra Pradesh 4.41 2000-2001 STAT, Andhra Pradesh 101.40 2001-2002 Andhra Pradesh, High Court 450.88 1995-1996 Commissioner of Commercial Taxes, Ranchi 258.12 1999-2000 Commissioner of Commercial Taxes, Ranchi 24.51 2001-2002 Commissioner of Commercial Taxes, Ranchi 49.47 2002-2003 Commissioner of Commercial Taxes, Ranchi 106.62 2009-2010 Jharkhand Commercial Tax Tribunal 27.66 2014-2015 JCCT, Ranchi 88.79 1993-1994, 1994-1995, 1995-1996 JCCT(Appeal), Dhanbad 0.67 & 1996-1997 Central Sales Tax Act & Sales 2005-2006 Commissioner of Commercial Taxes, Ranchi 78.50 Tax Acts of various states Joint Commissioner of Comm. Taxes, (Appeal), 1996-1997 1.92 Jamshedpur *1994-1995 Jharkhand Sales Tax Tribunal 219.10 *2003-2004 Addl. Commissioner, Kolkata 16.47 2006-2007 Jharkhand Commercial Tax Tribunal (Appeal) 9.76 2007-2008 Jharkhand Commercial Tax Tribunal (Appeal) 26.16 2010-2011 Commissioner of Commercial Taxes, Ranchi 217.29 2011-2012 Commissioner of Commercial Taxes, Ranchi 535.81 2011-2012 Commissioner of Commercial Taxes, Ranchi 0.016 1997-1998 Commissioner of Sales Tax, Cuttack 46.51 2013-2014 Appellate Dy. Commissioner, Vijaywada 16.09 2013-2014 Jt. Commissioner (Appeal), Durg 0.31 2014-2015 Sales Tax Appellate Tribunal, Raipur 14.77 2015-2016 Appellate Additional Commissioner, Raipur 5.40 Central Excise Act, 1944 2018-2019 CESTAT, Kolkata 200.00 Commissioner Appeal, CGST & Central Excise, Service Tax 2018-2019 30.65 Ranchi Employees Provident Fund and Misc. Provisions Act 2003-2004 EPF, Appellate Tribunal, New Delhi 229.70 1952 Income Tax Act 2000-2001 Income Tax Appellate Tribunal, Ranchi 178.17 Income Tax Act 2002-2003 CIT (A), Ranchi 105.54

Income Tax Act 2010-2011 CIT (A), Ranchi 79.42 Income Tax Act 2011-2012 CIT (A), Ranchi 96.32 Income Tax Act 2012-2013 Income Tax Appellate Tribunal, Ranchi 116.35 Income Tax Act 2013-2014 Income Tax Appellate Tribunal, Ranchi 205.80

89 MECON MECON Limited

Out of the above income tax dispute of ₹781.60 lakhs consisting of ₹497.89 lakhs has already been adjusted against refund. Out of the above disputed statutory dues, in the two cases marked *, provision has been made in the books of accounts under “Provision for Disputed cases –sales tax matter.” It is also informed that the Company has deposited ₹499.07 Lakhs towards the statutory disputed cases, out of which ₹241.10 Lakhs pertain to the statutory disputed cases listed above. The Balance ₹257.97 Lakhs relates to disputed cases which have been set aside by the authorities. viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders during the year. ix) According to the information and explanations given by the management and the audit procedures performed, the Company has not raised money by way of initial public offer or further public offer (including debt instruments) and term loan during the year. x) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud by the Company or any fraud on the Company by its officers and employees has been noticed or reported during the year. xi) As per notification GSR 463(E) dated 5th June 2015, issued by the Ministry of Corporate Affairs, Government of India, Section 197 of the Act is not applicable to the government Company. Accordingly paragraph 3(xi) of the order is not applicable to the Company. xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Therefore the provisions of Clause 3 (xii) of the Order are not applicable to the Company. xiii) In our opinion and according to the information and explanations given to us, all transactions with the related parties are in compliance with Section 177 & 188 of the Act and the details have been disclosed in the Financial Statements as required by the applicable accounting standards. xiv) According to the information and explanations given to us and based upon the audit procedure performed, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company. xv) According to the information and explanations given to us and based upon the audit procedure performed, the Company has not entered into any non-cash transactions with the directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company. xvi) In our opinion, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For V. Rohatgi & Co Chartered Accountants Firm Registration No: 000980C

Sd/- (Bipul Rastogi) Place: Ranchi Partner Dated: 01.10.2020 M.NO : 072318 UDIN: 20072318AAAAAY6428

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“Annexure B” to the Independent Auditors’ Report of even date on Standalone Financial Statements of MECON LIMITED for the year 2019-2020.

Directions under section143(5) of Companies Act, 2013 Referred to in paragraph 2 of our report

Sn Question Reply 1. Whether the Company has system As per the information and explanations given to us, in place to process all the accounting the Company has a system in place to process all the transactions through IT system? accounting transactions through IT system. The main area covered are financial accounting, payroll, sales, GST, job progress report. If yes, the implications of processing of Based on the audit procedures carried out and as per the accounting transactions outside IT system on information and explanations given to us, no accounting the integrity of the accounts along with the transactions have been processed / carried outside the financial implications, if any may be stated. IT system. Accordingly, there are no implications on the integrity of the accounts. 2. Whether there is any restructuring of an existing Based on the audit procedures carried out and as per the loan or cases of waiver/write off of debts/loans/ information and explanations given to us, there was no interest etc. made by a lender to the Company restructuring of existing loans or cases of waiver/write due to the Company’s inability to repay the loan? off of debts/ loans/interest etc. made by the lender to the Company due to the Company’s inability to repay the If yes, the financial impact may be stated. loan. 3. Whether funds received/receivable for specific Based on the audit procedures carried out and as per schemes from Central/State agencies were the information and explanations given to us, the funds properly accounted for/utilized as per its term received/receivable for specific schemes from Central/ and conditions? State agencies were properly accounted for/utilized as per the respective terms and conditions. List the cases of deviation.

91 MECON MECON Limited

“Annexure C” to the Independent Auditors’ report of even date on Standalone Financial Statements of MECON LIMITED.

Report on Internal Financial Controls over financial reporting under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”) We have audited the internal financial controls over financial reporting of MECON LIMITED (“the Company”) as of 31st March, 2020 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 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 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 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.

Auditor’s Responsibility Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting 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 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 the Institute of Chartered Accountants of India. 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 over financial reporting 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 over financial reporting included obtaining an understanding of internal financial controls over financial reporting, 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 auditor’s judgment, including the assessment of the risks of material misstatement of the Standalone 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 Company’s internal financial control system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting 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 Standalone Financial Statement 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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone 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 (3) 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 Standalone Financial Statements.

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Limitations of Internal Financial Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporting, 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 over financial reporting to future periods are subject to the risk that 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 and to the best of our information and according to the explanation given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2020, based on the internal controls 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 over Financial Reporting issued by the Institute of Chartered Accountants of India.

For V. Rohatgi & Co Chartered Accountants Firm Registration No: 000980C

Sd/- (Bipul Rastogi) Place: Ranchi Partner Dated: 01.10.2020 M.NO : 072318 UDIN: 20072318AAAAAY6428

93 MECON MECON Limited

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF MECON LIMITED FOR THE YEAR ENDED 31 MARCH 2020

The preparation of financial statements of MECON Limited for the year ended 31 March 2020 in accordance with the financial reporting framework prescribed under the Companies Act 2013 (Act) is the responsibility of the management of the company. The Statutory Auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act are responsible for expressing opinion on the financial statements under Section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under Section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 1 October 2020.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of MECON Limited for the year ended 31 March 2020 under Section 143(6)(a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors’ report under Section 143(6)(b) of the Act.

For and on behalf of the Comptroller and Auditor General of India

(A. P. Chophy) Place : Ranchi Director General of Audit (Steel) Date : 23.11.2020 Ranchi

94 47th ANNUAL REPORT

BALANCE SHEET AS AT 31ST MARCH, 2020 (₹ in lakhs) PARTICULARS NOTE NO. AS AT 31.03.2020 AS AT 31.03.2019 I. ASSETS (1) Non-Current Assets (a) Property, Plant and Equipment 3 6,740.22 6,951.80 (b) Capital Work-in-Progress 4 120.62 97.79 (c) Investment Property - - (d) Other Intangible Assets 5 98.18 164.57 (e) Intangible Assets under Development - - (f) Financial Assets i) Investments 6 11.92 11.92 ii) Trade Receivables 7 16,432.10 15,099.77 iii) Loans 8 301.51 228.81 iv) Other Financial Assets 9 2,006.31 18,751.84 - 15,340.50 (g) Deferred Tax Assets (Net) 10 8,751.93 8,240.12 (h) Other Non-Current Assets 11 1,501.25 2,048.42 (2) Current Assets (a) Inventories 12 180.91 145.91 (b) Financial Assets i) Investments 13 - - ii) Trade Receivables 14 29,875.89 29,486.34 iii) Cash and Cash Equivalents 15 2,194.26 730.17 iv) Other Bank Balances 16 37,100.79 53,412.12 v) Loans 17 785.60 758.09 vi) Other Financial Assets 18 6,910.57 76,867.11 8,153.36 92,540.08 (c) Current Tax Assets (Net) 19 10,533.50 9,706.90 (d) Other Current Assets 20 8,596.24 8,269.37 TOTAL ASSETS 132,141.80 143,505.46 II. EQUITY AND LIABILITIES (A) EQUITY (a) Equity Share Capital 21 4,013.84 4,013.84 (b) Other Equity 22 35,810.30 39,824.14 30,032.11 34,045.95 (B) LIABILITIES (1) Non-Current Liabilities (a) Financial Liabilities i) Borrowings - - ii) Trade Payables 23 (A) Total outstanding dues of micro enterprises and small enterprises 1,333.02 1,279.31 (B) Total outstanding dues of creditors other than micro enterprises 2,730.78 5,828.73 and small enterprises iii) Other Financial Liabilities 24 1,030.91 5,094.71 928.45 8,036.49 (b) Provisions 25 28,241.99 40,641.10 (c) Deferred Tax Liabilities (Net) 10 - - (d) Other Non-Current Liabilities 26 452.83 2,356.03 (2) Current Liabilities (a) Financial Liabilities i) Borrowings - - ii) Trade Payables 27 (A) Total outstanding dues of micro enterprises and small enterprises 2,337.58 2,549.04 (B) Total outstanding dues of creditors other than micro enterprises 10,394.06 8,998.05 and small enterprises iii) Other Financial Liabilities 28 32,164.65 44,896.29 27,465.24 39,012.33 (b) Other Current Liabilities 29 7,211.27 11,262.71 (c) Provisions 30 6,420.57 8,150.85 (d) Current Tax Liabilities (Net) 19 - - TOTAL EQUITY AND LIABILITIES 132,141.80 143,505.46 Note No.1 to 41 form an integral part of Financial Statements In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS Sd/- Sd/- Sd/- Sd/- Sd/- (BIPUL RASTOGI) (RAVI BAMBHA) (S. SAMANTA) (R. H. JUNEJA) (ATUL BHATT) PARTNER COMPANY SECRETARY GENERAL MANAGER DIRECTOR (FINANCE) CHAIRMAN and Memb.No.072318 I/C (FINANCE) MANAGING DIRECTOR Firm Regn. No.000980C Place : Ranchi Date : 01/10/2020 UDIN : 20072318AAAAAY6428

95 MECON MECON Limited

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2020 (₹ in lakhs) PARTICULARS NOTE NO. Current Year Previous Year

I. Revenue from Operations 31 64,751.47 47,920.36 II. Other Income 32 4,834.72 5,119.69 III. TOTAL INCOME (I+II) 69,586.19 53,040.05 IV. EXPENSES: (a) Purchases of Equipments & Direct Expenses 33 17,001.94 9,070.36 (b) (Accretion)/Decretion to Jobs-in-Progress 34 911.80 1,992.28 (c) Employee Benefits Expenses 35 30,228.81 28,822.45 (d) Finance Costs 36 175.54 142.11 (e) Depreciation and Amortisation Expenses 37 722.14 766.33 (f) Other Expenses 38 11,842.56 11,249.08 TOTAL EXPENSES (IV) 60,882.79 52,042.61

V. Profit/(Loss) before exceptional items and tax (III-IV) 8,703.40 997.44 VI. Exceptional Items - - VII. Profit/(Loss) before tax (V-VI) 8,703.40 997.44 VIII. Tax Expense: (a) Current Tax 2,314.78 1,588.12 (b) Deferred Tax (511.81) (1,964.69) (c) Taxes relating to Earlier Years - - IX. Profit/(Loss) for the year (VII-VIII) 6,900.43 1,374.01 X. Other Comprehensive Income (a) Items that will not be reclassified to Profit and Loss Re-measurement of Defined Benefit Plans (1,725.03) (203.14) (b) Income tax relating to items that will not be reclassified to Profit and Loss

Re-measurement of Defined Benefit Plans 602.79 43.77 XI. Total Comprehensive Income for the year (IX+X) 5,778.19 1,214.64 XII. Earnings per equity share (Face Value ` 10/- each) 41.12 Basic & Diluted (`) 17.19 3.42 Note No.1 to 41 form an integral part of Financial Statements In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS Sd/- Sd/- Sd/- Sd/- Sd/- (BIPUL RASTOGI) (RAVI BAMBHA) (S. SAMANTA) (R. H. JUNEJA) (ATUL BHATT) PARTNER COMPANY SECRETARY GENERAL MANAGER DIRECTOR (FINANCE) CHAIRMAN and Memb.No.072318 I/C (FINANCE) MANAGING DIRECTOR Firm Regn. No.000980C Place : Ranchi Date : 01/10/2020 UDIN : 20072318AAAAAY6428

96 47th ANNUAL REPORT

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2020 A. EQUITY SHARE CAPITAL (₹ in lakhs) Changes in Equity Balance as at 31st Balance as at 31st Particulars Share Capital March, 2019 March, 2020 during the year Equity Share Capital 4,013.84 - 4,013.84

B. OTHER EQUITY (₹ in lakhs) Other Reserves and Surplus Comprehensive Income Particulars TOTAL Capital Remeasurement CSR Activity General Retained Redemption of Defined Benefit Reserve $$ Reserve Earnings Reserve $ Plans Balance as at 1st April, 2018 6,300.00 - 9,852.39 2,660.70 (2,242.86) 16,570.23 Adjustment due to Ind AS Implementation - - - 13,485.57 - 13,485.57 Net Profit / (Loss) during the period - - - 1,374.01 - 1,374.01 Remeasurement of gains / (losses) on Defined Benefit Plans - - - - (159.37) (159.37) Dividend on Equity Shares - - - (1,027.19) - (1,027.19) Dividend Distribution Tax - - - (211.14) - (211.14) Transferred from Retained Earnings during the period - 87.96 - - - 87.96 Transferred to Retained Earnings during the period - (16.92) - - - (16.92) Transferred from CSR Activity Reserve during the period - - - 16.92 - 16.92 Transferred to CSR Activity Reserve during the period - - - (87.96) - (87.96) Transferred to General Reserve ------Adjusted / written back on Revaluation Reserve ------Balance as at 31st March, 2019 6,300.00 71.04 9,852.39 16,210.91 (2,402.23) 30,032.11 Net Profit / (Loss) during the period - - - 6,900.43 - 6,900.43 Remeasurement of gains / (losses) on Defined Benefit Plans - - - - (1,122.24) (1,122.24) Dividend on Equity Shares ------Dividend Distribution Tax ------Transferred from Retained Earnings during the period - 19.92 - - - 19.92 Transferred to Retained Earnings during the period - (55.52) - - - (55.52) Transferred from CSR Activity Reserve during the period - - - 55.52 - 55.52 Transferred to CSR Activity Reserve during the period - - - (19.92) - (19.92) Transferred to General Reserve ------Adjusted / written back on Revaluation Reserve ------Balance as at 31st March, 2020 6,300.00 35.44 9,852.39 23,146.94 (3,524.47) 35,810.30 $ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act. $$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc. Note No.1 to 41 form an integral part of Financial Statements In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS Sd/- Sd/- Sd/- Sd/- Sd/- (BIPUL RASTOGI) (RAVI BAMBHA) (S. SAMANTA) (R. H. JUNEJA) (ATUL BHATT) PARTNER COMPANY SECRETARY GENERAL MANAGER DIRECTOR (FINANCE) CHAIRMAN and Memb.No.072318 I/C (FINANCE) MANAGING DIRECTOR Firm Regn. No.000980C Place : Ranchi Date : 01/10/2020 UDIN : 20072318AAAAAY6428

97 MECON MECON Limited

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020 (Indirect Method) (₹ in lakhs) 2019-20 2018-19 Cash Flows from Operating Activities Net Profit/(Loss) before Taxation 8,703.40 997.44 Add : Adjustments for Depreciation & Amortisation 722.14 766.33 Loss on Sale/Disposal of Fixed Assets - 0.17 Bad Debts written off 1.81 - Provision for Bad & Doubtful Trade Receivables / ECL 2,648.56 2,644.03 Provision for impairment in the value of Investments - - Other Provisions 3,048.86 2,438.20 Advances / Deposits / Receivable written off 13.73 - Finance Costs 175.54 142.11 6,610.64 5,990.84 Less : Adjustments for Profit on Sale/Disposal of Fixed Assets 6.18 5.16 Interest Income 2,936.63 3,770.82 Dividend Received 1.60 1.60 Gain/(Loss) on Redemp. or Fair Valuation of Invest. in MFs 6.96 - 2,951.37 3,777.58 Operating Profit/(Loss) before Working Capital Changes 12,362.67 3,210.70 Add : Adjustments for (Increase) / Decrease in Inventories (35.00) 2.56 (Increase) / Decrease in Trade Receivables (4,372.25) (9,025.60) (Increase) / Decrease in Loans (2,329.37) (174.85) (Increase) / Decrease in Other Current Financial Assets 901.90 2,655.02 (Increase) / Decrease in Tax Assets (2,552.32) (3,523.59) (Increase) / Decrease in Other Non-Financial Assets (100.91) (2,424.83) Increase / (Decrease) in Trade Payables (1,859.69) (1,374.98) Increase / (Decrease) in Financial Liabilities 4,801.87 4,149.15 Increase / (Decrease) in Provisions (15,854.42) 3,090.36 Increase / (Decrease) in Non-Financial Liabilities (6,112.24) (2,766.69) (27,512.43) (9,393.45) Cash Generated from Operations (15,149.76) (6,182.75) Less : Taxes Paid - - Net Cash from Operating Activities {A} (15,149.76) (6,182.75)

98 47th ANNUAL REPORT

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020 (Indirect Method) (Contd.) (₹ in lakhs)

2019-20 2018-19

Cash Flows from Investing Activities

Purchase of Property, Plant & Eqpt. and Intangible Assets (469.83) (371.18)

Property, Plant & Eqpt. and Intangible Asset sold/discarded 9.01 21.64

(Increase) / Decrease in Deposits with Bank 13,850.59 2,440.41

Interest Received 3,391.06 3,309.88

Dividend Received 1.60 1.60

Gain / (Loss) on Redemption of Investment in MFs 6.96 -

Net Cash from Investing Activities {B} 16,789.39 5,402.35

Cash Flows from Financing Activities

Dividend including Dividend Tax Paid - (1,238.33)

Finance Costs (175.54) (142.11)

Net Cash from Financing Activities {C} (175.54) (1,380.44)

Net Increase/(Decrease) in Cash & Cash Equivalent {A}+{B}+{C} 1,464.09 (2,160.84)

Cash and Cash Equivalent at the beginning 730.17 2,891.01

Cash and Cash Equivalent at the end 2,194.26 730.17

Note No.1 to 41 form an integral part of Financial Statements

Cash & Cash Equivalent represents

i) Cash at Bank (Current A/c & Flexi Deposit A/c) 2,182.60 724.61

ii) Cheques & Drafts on hand - -

iii) Cash & Stamps on hand 11.66 2,194.26 5.56 730.17

In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS Sd/- Sd/- Sd/- Sd/- Sd/- (BIPUL RASTOGI) (RAVI BAMBHA) (S. SAMANTA) (R. H. JUNEJA) (ATUL BHATT) PARTNER COMPANY SECRETARY GENERAL MANAGER DIRECTOR (FINANCE) CHAIRMAN and Memb.No.072318 I/C (FINANCE) MANAGING DIRECTOR Firm Regn. No.000980C Place : Ranchi Date : 01/10/2020 UDIN : 20072318AAAAAY6428

99 MECON MECON Limited

NOTE 1 : CORPORATE AND GENERAL INFORMATION

MECON LIMITED (“the Company”) is India’s frontline Consultancy, Engineering & EPC Solution provider across sectors, with extensive capabilities in Steel Industry. The Company, a wholly owned Government of India Enterprise under Ministry of Steel, that was incorporated on 31st March, 1973 and is domiciled in India. The Company has its registered office situated at Vivekananda Path, Doranda, Ranchi – 834002, Jharkhand, India. The Company operates in three major segments, namely, Metals, Energy & Infrastructure. These financial statements for the period ended st31 March, 2020 were approved for issue by the Board of Directors of the Company in their meeting held on 30th September, 2020. NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS 1.1 Statement of Compliance The financial statements are prepared in accordance with generally accepted accounting principles in India, Indian Accounting Standards as notified / amended from time to time, provisions of the Companies Act, 2013 / 1956 and relevant rules as applicable. 1.2 Basis of Measurement The financial statements are prepared on a going concern basis and on accrual basis of accounting under the historical cost concept except as otherwise mentioned in the policy. 1.3 Functional and Presentation Currency The amounts in financial statements and notes are presented in Indian Rupees (INR) (₹) which is the functional currency of the Company. All financial information presented in INR (₹) has been rounded off to the nearest INR (₹) in lakhs with two decimal places, except as otherwise stated. 1.4 Use of Estimates and Management Judgment In preparing the financial statements in conformity with accounting principles generally accepted in India, Indian Accounting Standards as notified / amended from time to time, provisions of the Companies Act 2013 / 1956 and relevant rules as applicable, the Company makes best estimates, assumptions and judgments that may affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities as at the reporting date and the amount of revenue and expenses during the reporting period. The estimates and judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual result in some cases may differ from such estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision of such estimates is recognised during the period in which the same is determined. In order to enhance understanding of the financial statements, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are as follows: 1.4.1 Revenue The Company recognizes revenue over time by measuring the progress towards satisfaction of the performance obligation depending upon the nature / scope, etc. of job. 1.4.2 Defined Benefit Obligations Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increase and the inflation rate. However, any changes in these assumptions may have impact on the resulting calculations. 1.4.3 Provisions and Contingencies Assessments undertaken in recognizing provisions and contingencies have been made as per the best judgment based on the current information as available.

100 47th ANNUAL REPORT

1.5 Current and Non-Current Classification 1.5.1 All items of assets and liabilities in the Balance Sheet are classified as Current and Non-current as per requirement of the Companies Act, 2013, as applicable. 1.5.2 Normal operating cycle of the Company is considered 12 months keeping in view past experience and nature of business of the Company. 1.5.3 Trade Receivables (i.e. dues arising only from clients in the normal course of business) outstanding for a period exceeding six months is determined after taking into account 30 days normal credit period allowed by the Company. 1.5.4 Dues on account of goods purchased or services received in the normal course of business are treated as Trade Payables. 2. PROPERTY, PLANT AND EQUIPMENT 2.1 Recognition 2.1.1 Items of Property, Plant and Equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses, if any. Cost comprises any directly attributable costs net of tax / duty credit availed and includes borrowing costs which meet capitalization criteria, expenses incidental to acquisition, installation, etc. of bringing the items of Property, Plant and Equipment to the location and working condition for its intended use but excludes training, administration and overhead costs. 2.1.2 Deposits / payments / liabilities made towards compensation, rehabilitation, etc. relating to acquisition of land are treated as cost of land in the period in which they occur. 2.1.3 Items of major spare parts, stand-by equipment and servicing equipment which meet the definition of Property, Plant and Equipment are capitalised. Otherwise, they are classified as inventories in accordance with Ind AS – 2. 2.1.4 Items of Property, Plant and Equipment purchased during the year costing upto ₹1,000/- each item are charged to revenue. 2.1.5 The cost of any software purchased along with the computer hardware, being an integral part of the hardware, is capitalized along with the cost of the hardware. 2.1.6 Items of Property, Plant and Equipment held under lease are recognised as per Ind AS -116. 2.1.7 Advances paid towards the acquisition of Property, Plant and Equipment and outstanding at each Balance Sheet date are classified as “Capital Advances” under Non-Current Assets. 2.2 Subsequent Costs 2.2.1 Subsequent major expenditure on items of Property, Plant and Equipment fulfilling the criteria of recognition is recognised as an increase in the carrying amount of the items of Property, Plant and Equipment. 2.2.2 The costs of the day-to-day servicing of Property, Plant and Equipment are recognised as expenses in the Statement of Profit and Loss as and when they are incurred. 2.3 Derecognition 2.3.1 Items of Property, Plant and Equipment are derecognised on disposal or when no future economic benefits are expected from its intended use. Gains / losses on disposal of an item of Property, Plant and Equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment, and are recognised in the Statement of Profit and Loss. 2.3.2 Items of Property, Plant and Equipment held for immediate sale in the present condition, their sale is highly probable and their carrying amount will be recovered principally through a sale transaction are classified separately as “Non-Current Assets Held for Sale” at the lower of their carrying amount and fair value less costs to sale.

101 MECON MECON Limited

2.4 Depreciation 2.4.1 Depreciation on Property, Plant and Equipment is commenced when it is available for intended use and is provided for under “Straight-Line Method”, considering residual value of 5% of the original cost of the Property, Plant and Equipment, over the useful life of the Property, Plant and Equipment in line with Schedule II of the Companies Act, 2013 and relevant rules as applicable. 2.4.2 Items of Property, Plant and Equipment costing above ₹1,000/- each item and up to ₹5,000/- each item are fully depreciated in the year of acquisition. 2.4.3 Property, Plant and Equipment held under lease are depreciated over its useful life as per Schedule II of the Companies Act, 2013 or over the period of lease term whichever is shorter. 2.4.4 Where cost of a part of an item of Property, Plant and Equipment is significant in relation to the total cost of the item and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part is determined separately for computation of depreciation. 2.4.5 Depreciation on additions to / deductions from Property, Plant and Equipment during the year is charged on pro-rata basis from / up to the date on which the asset is available for use / disposed. 2.4.6 Depreciation on subsequent cost of an item of Property, Plant and Equipment capitalized is charged off prospectively over the remaining useful life of main item of Property, Plant and Equipment. 2.4.7 Depreciation on Property, Plant and Equipment which is declared idle or retired from active use, but not classified as held for sale in accordance with Ind AS – 105, is charged off over the remaining useful life of that Property, Plant and Equipment. 2.4.8 Depreciation on Property, Plant and Equipment is ceased at the earlier of, the date that the asset is classified as held for sale in accordance with Ind AS – 105 and the date that the asset is de-recognised. 2.5 Capital Work-In-Progress The cost of construction of Property, Plant and Equipments incurred till they are ready for their intended use are recognised as Capital Work-in-Progress. 3. INTANGIBLE ASSETS 3.1 Recognition 3.1.1 Expenditure incurred on acquisition of technical know-how, engineering materials, computer software (which is not an integral part of related hardware), etc. is treated as intangible asset. 3.1.2 Intangible assets that are acquired by the Company, which have finite useful lives, are recognised at cost. Subsequent measurement is done at cost less accumulated amortization and accumulated impairment losses, if any. Cost includes any directly attributable expenses necessary to make the assets ready for its intended use but excludes training, administration and overhead costs. 3.1.3 Expenditure incurred on research & development activities are accounted as expenses in the Statement of Profit and Loss. 3.2 Derecognition An intangible asset is derecognised when no future economic benefits are expected from their intended use or upon their disposal. Gains / losses on disposal of an item of intangible asset are determined by comparing the proceeds from disposal with the carrying amount of intangible assets and are recognised in the Statement of Profit and Loss. 3.3 Amortisation 3.3.1 Amortisation is commenced from the date the intangible asset is available for intended use. 3.3.2 Expenditure incurred on acquisition of software is amortised on straight line method over a period of five years or its license period, whichever is less. However, software individually costing upto ₹5,00,000/- each is fully amortised in the year of acquisition. 3.3.3 Expenditure incurred on acquisition of other intangible assets is amortised over a period of five years on straight line method. 102 47th ANNUAL REPORT

4. BORROWING COST 4.1 Borrowing costs incurred by the Company which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. 4.2 Other borrowing costs are recognised as expense in the period in which these are incurred. 5. IMPAIRMENT OF NON-FINANCIAL ASSETS The Company reviews the carrying amount of its non-financial assets, whenever circumstances indicate that the carrying amount of the asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognised is measured by the amount by which the carrying amount of the assets exceeds the higher of its fair value less costs to sell and its value in use. If it is found that some of the impairment losses already recognised need to be reversed, the same are recognised in the Statement of Profit & Loss in the year of reversal. 6. INVENTORIES 6.1 Closing stock of stores & spares, printing & stationery items and other consumables are valued at lower of cost, on First in First Out (FIFO) basis, and net realisable value. Consumption of the above items during the reporting period is arrived at by deducting the value of physical stock in hand as on the reporting date from the aggregate value of opening stock and purchases during the reporting period. However, spare parts, equipments, etc. are not considered as inventory when it is required to be capitalized as per Ind AS -16. 6.2 Provision for obsolescent / surplus / non-moving inventory is made based on best estimates of net realisable value of such inventories. 7. FOREIGN CURRENCY TRANSACTION AND TRANSLATION 7.1 Foreign currency transactions are translated into the functional currency of the Company using the exchange rate prevailing at the date of the transactions as applicable. 7.2 Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange at the reporting date as applicable. Exchange differences arising on settlement or translation of monetary items are recognised in the Statement of Profit and Loss in the year in which it arises. 7.3 Non-monetary assets and liabilities denominated in foreign currency and measured at historical cost are translated using the exchange rate at the date of the transaction as applicable. 8. REVENUE & OTHER INCOME RECOGNITION The Company derives its revenue from design, engineering & consultancy services, execution of EPC projects / construction contracts, project management & consultancy services and procurement services. Other income comprises interest on deposits with banks / financial institutions / employees, dividend from investments, other miscellaneous income, etc. 8.1 Engineering / Consultancy Services 8.1.1 Revenue from Engineering & Consultancy services rendered to the clients against contracts or Letters of Intent or Work orders or exchange of letters which stipulate lump sum fee is recognized over time using output method based on satisfaction of the performance obligation / right to receive payment. However, revenue shall be recognised upto the value of invoices raised after adjustment of down payment invoices on proportionate basis, unless stated otherwise in the contract. 8.1.2 Revenue from services rendered other than lump sum fee basis (including reimbursable jobs) is recognized at 100% value of the invoices raised towards satisfaction of the performance obligation. 8.2 Execution of Projects / Construction Contracts 8.2.1 Revenue from execution of projects / construction contracts (including sale of spares) for the clients against contracts or letters of intent or work orders or exchange of letters which stipulate fixed price is recognized over time using output method based on satisfaction of the performance obligation.

103 MECON MECON Limited

8.2.2 Revenue from cost plus construction contracts / deposit works with turnkey scope / procurement services is recognized to the extent of amount billed as per identified performance obligation on the basis of contracts or letters of intent or work orders or exchange of letters received from clients 8.3 Revenue on account of escalation, additional or extra claims etc. from clients and other miscellaneous items like project insurance claims etc. are recognized at 100% value as and when they are admitted. 8.4 In cases where minimum undisputed terms are agreed to by the client, revenue is accounted for on the basis of such undisputed terms. 8.5 In case of foreclosure of jobs, the fee mutually settled between the client and the Company is considered as 100% of value of work done and revenue is recognised accordingly under “Revenue from Consultancy Services” / “Revenue from Construction Contracts” / “Revenue from Procurement Services”. In case, the settled fee is less than the revenue already recognised, such excess revenue is charged to Statement of Profit & Loss under the head “Fees Withdrawn”. 8.6 Liquidated Damages 8.6.1 In cases where deduction is made by the client on account of Liquidated Damages (LD) and LD arises out of contractual terms, liability for LD amount is created. Contract Fee is adjusted by the LD amount for revenue recognition and liability for LD in proportion to progress reported is created. Balance liability, if any, is created by charging off to the Statement of Profit and Loss. 8.6.2 Where no deduction is made by the client on account of Liquidated Damages (LD) but LD arises out of contractual terms, LD amount is adjusted from the contract fee for revenue recognition and liability for LD is created in proportion to progress reported. 8.6.3 Where deduction is made by the client on account of non-achievement of any specified parameter such as – PG parameter or other parameters specifically mentioned in the contract and such non-achievement is established as well as accepted by MECON, liability for LD amount is created to the extent amount is deducted by the client. Contract Fee is adjusted by the LD amount for revenue recognition and liability in proportion to progress reported is created. Balance liability, if any, is created by charging off to the Statement of Profit & Loss. 8.7 Other Operating Revenue Revenue arising from ancillary operating activities of the Company is recognised as Other Operating Revenue. Other Operating Revenue comprises generally receipts from sale of project scraps, provisions no longer required written back relating to execution of jobs, etc. 8.8 Other Income Interest income is recognised on an accrual basis. Dividend income from investments is recognised as and when the right to receive the payment is established. Income from rentals and operating leases is recognised on accrual basis in accordance with the substance of the relevant agreement. Other income also includes income from township, profit on sale / disposal of Fixed Assets and all other non-operating income. 9. JOB-IN-PROGRESS 9.1 Where the progress has been achieved (on the basis of technical estimate) in respect of a job but claim for payment as per contract does not arise, lower of cost or value of the work done based on percentage of progress, is carried forward under Job-in-Progress. However, Job-in-Progress is recognised considering 90% value only, unless technical estimate has reached 100%. 9.2. Where the work is started on the basis of job allotted by LOI / any other communication from the client, but the fee is yet to be settled, the cost incurred against such jobs is carried forward under Job-in-Progress. 10. EMPLOYEE BENEFITS 10.1 Post-Employment Benefits 10.1.1 Defined Contribution Plan Contributions paid / payable under defined contribution plan is recognised on the basis of actual liability on undiscounted basis in the reporting period in which they are incurred and charged to profit and loss.

104 47th ANNUAL REPORT

10.1.2 Defined Benefit Plans The Company has post-retirement defined benefit plans comprising Retirement Gift, Post-Retirement Settlement Benefits, Post-Retirement Medical Benefits, Gratuity and Provident Fund to the extent of interest liability on provident fund contribution. Employee benefits expenses under post-retirement defined benefit plans are recognised based on the actuarial valuation as per Ind AS – 19 as at the end of the reporting period using the projected unit credit method and recognised in profit and loss. Any actuarial gains or losses are recognised in other comprehensive income in the period in which they arise. 10.2 Other Long-Term Employee Benefits Other long-term employee benefits under defined benefit plans comprises of leave encashment, long-service award, leave travel concession / leave travel assistance and employee family benefit schemes. Employee benefits under other long-term defined benefit plans are recognised based on the actuarial valuation as at the end of the reporting period using the projected unit credit method and recognised in profit and loss. Any actuarial gains or losses are recognised in profit and loss in the period in which they arise. 10.3 Short-Term Employee Benefits Short-term benefits comprise of employee costs such as salaries, bonus, etc. are accrued in the year in which the associated service are rendered by employees. 10.4 Termination Benefits Expenses are recognised for termination benefits (including Voluntary Retirement Compensation) in the period in which it is incurred. 11. MATERIAL PRIOR PERIOD ERRORS 11.1 Any expenditure or income which exceeds 0.5% of turnover in each case, which arise in the current period as a result of errors or omissions in the preparation of financial statements of one or more prior periods, are treated as material prior period errors. 11.2 Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest period presented, the opening balances of assets, liabilities and equity for the earliest period presented, are restated. 11.3 A prior period error shall be corrected by retrospective restatement except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error. 12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS 12.1 Provisions for estimated liabilities on account of guarantees & warranties etc. in respect of Engineering & Consultancy Services and Turnkey Contracts are made by the Company after assessment of risk and consequential probable liabilities on case to case basis. 12.2 Provisions for liquidated damages are made as per accounting policy no. 8.6. Provision for penalties / fines / miscellaneous deductions is made as and when these are deducted as per terms of contract and are admitted by the Company. 12.3 Suppliers’/contractors’ claims for price escalation, additional or extra claims, etc. are accounted for to the extent such claims are accepted by the Company. 12.4 Where the effect of time value of money is material, provisions are determined and maintained by discounting the expected future cash flows, wherever applicable. 12.5 Contingent Liabilities / Contingent Assets are disclosed on the basis of best judgment. These are reviewed at each balance sheet date and are adjusted to reflect the current estimate. 13. INCOME TAXES 13.1 Income tax expense comprises current and deferred tax. Current tax expense is recognised in the Statement of Profit and Loss except to the extent that it relates to items recognised directly in other comprehensive income (OCI) or equity, in which case it is recognised in OCI or equity.

105 MECON MECON Limited

13.2 Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years. 13.3 Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority. 13.4 Deferred tax is recognised in the Statement of Profit and Loss except to the extent that it relates to items recognised directly in OCI or equity, in which case it is recognised in OCI or equity. 13.5 Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss, unused tax credits or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. 13.6 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. 13.7 Additional income taxes that arise from the distribution of dividends are recognised at the same time that the liability to pay the related dividend is recognised. 14. LEASES Whether a contract is, or contains, a lease is assessed at the inception of the contract. A contract is, or contains, 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. The right to control signifies both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. An asset is typically identified by being explicitly specified in a contract or being implicitly specified at the time that the asset is made available for use. 14.1 Company as a Lessee 14.1.1 Lease payment associated with short-term leases (leases with lease term of twelve months or less) and leases for which the underlying asset is of low value is recognised as an expense in the Statement of Profit and Loss on straight line basis over the lease term. 14.1.2 For leases, other than short-term leases and other than leases for which the underlying asset is of low value, Right-of-Use Asset and Lease Liability are recognised. Recognition Right-of-Use Asset is initially recognised at cost at the commencement date and subsequently carried at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any re-measurement of lease liability. The cost comprise the initial amount of the lease liability adjusted for any lease payments made at or prior to the commence date of the lease plus any initial direct costs less any lease incentives. Lease Liability is initially recognised at the present value of the unpaid lease payments discounted using the incremental borrowing rate and subsequently measured at carrying amount reflecting interest, lease payments made and re-measurement due to reassessment / lease modifications, if any. The interest element of lease liability is charged to Statement of Profit and Loss, as finance costs over the period of the lease. Depreciation Depreciation on Right-of-Use Asset is provided for under “Straight-Line Method” from commencement date to the end of useful life or the end of lease term, whichever is earlier.

106 47th ANNUAL REPORT

14.2 Company as a Lessor 14.2.1 Operating Lease Asset given on lease where the Company does not transfer substantially all the risks and rewards of ownership of the asset is classified as operating lease. Receipts under operating lease are recognised as income in the Statement of Profit and Loss on straight line basis over the lease term. 15. DIVIDENDS Dividends payable to the shareholders of the Company are recognised as changes in equity in the period in which they are approved by the Board of Directors and the Shareholder’s Meeting respectively. 16. STATEMENT OF CASH FLOWS Statement of Cash Flows is prepared under “Indirect Method” in accordance with Ind AS – 7 “Statement of Cash Flows”. 17. FINANCIAL INSTRUMENTS A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 17.1 Financial Assets 17.1.1 Initial Recognition Financial assets are recognised initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted. 17.1.2 Subsequent Measurement Subsequent to initial recognition, all financial assets are measured either at amortised cost or at fair value. Where financial assets are measured at fair value, gains and losses are recognised entirely in profit and loss (fair value through profit and loss, FVTPL). Effective interest rate (EIR) method for measurement is used for financial assets measured at amortised cost. The effective interest rate (EIR) amortization is included in the finance income in the profit and loss. Equity investments in subsidiaries and joint ventures are measured at cost. 17.1.3 Derecognition A financial asset is primarily derecognised when the right to receive cash flows from the financial asset has expired or the Company has transferred its rights to receive cash flows from the financial asset. 17.1.4 Impairment of financial assets Trade Receivables As a practical expedient the Company has adopted ‘simplified approach’ using the provision matrix method for recognition of expected loss on trade receivables. Investment in subsidiaries, joint ventures and associates The Company assesses whether there is any indication that these investments are be impaired. If any such indication exists, the investment is considered for impairment based on the fair value thereof. Other Financial Assets For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased significantly, impairment loss is provided. The losses arising from impairment are recognised in the Statement of Profit and Loss.

107 MECON MECON Limited

17.2 Financial Liabilities 17.2.1 Initial Recognition Financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of financial liabilities is also adjusted. 17.2.2 Subsequent measurement Financial liabilities are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognised in profit and loss when the liabilities are derecognised as well as through the EIR amortization process. 17.2.3 Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. 17.3 Offsetting of Financial Instruments: Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.

108 NOTE 3.1 - PROPERTY, PLANT AND EQUIPMENT (GENERAL)

As on 31st March, 2020 (₹ in lakhs)

COST DEPRECIATION NET CARRYING AMOUNT Sl. Particulars Addition/ Inter- On Sale/ Inter- No. As on Sale/ Ad- As on As on During Upto As on As on Adjust- Head Ad- Adjust- Head Ad- 01.04.19 justment 31.03.20 01.04.19 the period 31.03.20 31.03.20 31.03.19 ment justment ment justment

1. Land 63.93 - - - 63.93 - - - - - 63.93 63.93

2. Building - Freehold 2,464.79 44.09 22.78 - 2,486.10 1,131.15 21.64 - 54.88 1,164.39 1,321.71 1,333.64

- Leasehold 185.11 - - - 185.11 67.52 - - 3.32 70.84 114.27 117.59

3. Road, Bridges & Culverts 0.55 - - - 0.55 0.53 - - - 0.53 0.02 0.02

4. Water Supply and Sewerage 36.17 - - - 36.17 15.26 - - 2.12 17.38 18.79 20.91

5. Furniture & Fixtures 1,125.60 55.87 10.98 - 1,170.49 895.12 10.44 - 39.06 923.74 246.75 230.48

6. Motor Vehicles 83.65 - - - 83.65 13.02 - - 9.08 22.10 61.55 70.63

7. Office Equipments 986.07 14.42 0.48 - 1,000.01 818.21 0.46 - 69.37 887.12 112.89 167.86

8. Computer Hardware 2,385.21 171.56 7.13 - 2,549.64 2,191.06 6.80 - 76.37 2,260.63 289.01 194.15

9. Laboratory Equipments 591.71 13.66 (0.01) - 605.38 431.46 - - 28.20 459.66 145.72 160.25

10. Electrical Installation 1,376.85 18.70 16.40 - 1,379.15 850.74 15.59 - 88.43 923.58 455.57 526.11 47 th ANNUAL REPORT 11. Misc. Articles including Library 216.35 2.67 (0.01) - 219.03 202.33 - - 2.50 204.83 14.20 14.02

TOTAL 9,515.99 320.97 57.75 - 9,779.21 6,616.40 54.93 - 373.33 6,934.80 2,844.41 2,899.59 109

Contd... MECON 110

As on 31st March, 2019 (₹ in lakhs) MECON Limited

NET CARRYING COST DEPRECIATION AMOUNT Sl. Particulars No. Addition/ Inter- On Sale/ Inter- As on Sale/ Ad- As on As on During Upto As on As on Adjust- Head Ad- Adjust- Head Ad- 01.04.18 justment 31.03.19 01.04.18 the period 31.03.19 31.03.19 31.03.18 ment justment ment justment

1. Land 63.93 - - - 63.93 - - - - - 63.93 63.93

2. Building - Freehold 2,445.74 19.05 - - 2,464.79 1,054.78 - - 76.37 1,131.15 1,333.64 1,390.96

- Leasehold 185.11 - - - 185.11 64.20 - - 3.32 67.52 117.59 120.91

3. Road, Bridges & Culverts 0.55 - - - 0.55 0.53 - - - 0.53 0.02 0.02

4. Water Supply and Sewerage 36.17 - - - 36.17 13.15 - - 2.11 15.26 20.91 23.02

5. Furniture & Fixtures 1,120.71 6.53 1.64 - 1,125.60 855.91 1.56 - 40.77 895.12 230.48 264.80

6. Motor Vehicles 67.74 65.43 49.52 - 83.65 40.83 34.24 - 6.43 13.02 70.63 26.91

7. Office Equipments 967.45 23.56 0.62 (4.32) 986.07 731.50 0.11 (0.03) 86.85 818.21 167.86 235.95

8. Computer Hardware 2,336.58 44.73 0.42 4.32 2,385.21 2,070.84 0.40 0.03 120.59 2,191.06 194.15 265.74

9. Laboratory Equipments 591.71 - - - 591.71 403.38 - - 28.08 431.46 160.25 188.33

10. Electrical Installation 1,348.11 28.96 0.22 - 1,376.85 757.48 0.10 - 93.36 850.74 526.11 590.63

11. Misc. Articles including Library 210.32 6.03 - - 216.35 199.62 - - 2.71 202.33 14.02 10.70

TOTAL 9,374.12 194.29 52.42 - 9,515.99 6,192.22 36.41 - 460.59 6,616.40 2,899.59 3,181.90 NOTE 3.2 - PROPERTY, PLANT AND EQUIPMENT (SOCIAL AMENITIES)

As on 31st March, 2020 (₹ in lakhs)

NET CARRYING COST DEPRECIATION AMOUNT Sl. Particulars Inter- Inter- No. Addition/ Sale/ On Sale/ During As on Head As on As on Head Upto As on As on Adjust- Adjust- Adjust- the 01.04.19 Adjust- 31.03.20 01.04.19 Adjust- 31.03.20 31.03.20 31.03.19 ment ment ment period ment ment

1. Land 203.67 24.02 - - 227.69 - - - - - 227.69 203.67

2. Building 4,057.26 - - - 4,057.26 1,034.03 - - 67.81 1,101.84 2,955.42 3,023.23

3. Road, Bridges & Culverts 318.12 - - - 318.12 302.14 - - 0.08 302.22 15.90 15.98

4. Water Supply and Sewerage 285.86 - - - 285.86 187.70 - - 10.29 197.99 87.87 98.16

5. Fences 82.20 - - - 82.20 78.09 - - - 78.09 4.11 4.11

6. Plant & Equipments 498.44 0.37 - - 498.81 310.07 0.01 - 23.82 333.88 164.93 188.37

7. Furniture & Fixtures 122.36 0.06 - - 122.42 87.27 - - 6.46 93.73 28.69 35.09

8. Motor Vehicles 1.05 - - - 1.05 0.92 - - 0.04 0.96 0.09 0.13

9. Office Equipments 33.35 - 0.01 - 33.34 25.53 - - 3.01 28.54 4.80 7.82

10. Computer Hardware 20.20 - - - 20.20 13.43 - - 2.31 15.74 4.46 6.77

11. Electrical Installation 931.52 3.74 0.01 - 935.25 462.92 - - 70.76 533.68 401.57 468.60 47 th 12. Misc. Articles including Library 6.22 - - - 6.22 5.94 - - 5.94 0.28 0.28 ANNUAL REPORT

TOTAL 6,560.25 28.19 0.02 - 6,588.42 2,508.04 0.01 - 184.58 2,692.61 3,895.81 4,052.21 111

Contd... MECON 112 MECON Limited

As on 31st March, 2019 (₹ in lakhs)

NET CARRYING COST DEPRECIATION AMOUNT Sl. Particulars Inter- No. Addition/ On Sale/ Inter During As on Sale/ Ad- Head As on As on Upto As on As on Adjust- Adjust- Head Ad- the 01.04.18 justment Adjust- 31.03.19 01.04.18 31.03.19 31.03.19 31.03.18 ment ment justment period ment

1. Land 197.46 6.21 - - 203.67 - - - - - 203.67 197.46

2. Building 4,057.11 5.37 5.22 - 4,057.26 970.60 4.59 - 68.02 1,034.03 3,023.23 3,086.51

3. Road, Bridges & Culverts 318.12 - - - 318.12 291.71 - - 10.43 302.14 15.98 26.41

4. Water Supply and Sewerage 283.35 2.51 - - 285.86 177.49 (0.01) - 10.20 187.70 98.16 105.86

5. Fences 82.20 - - - 82.20 78.09 - - - 78.09 4.11 4.11

6. Plant & Equipments 490.62 7.82 - - 498.44 284.98 - - 25.09 310.07 188.37 205.64

7. Furniture & Fixtures 114.17 8.19 - - 122.36 79.85 - - 7.42 87.27 35.09 34.32

8. Motor Vehicles 1.05 - - - 1.05 0.88 - - 0.04 0.92 0.13 0.17

9. Office Equipments 31.59 1.76 - - 33.35 22.36 - - 3.17 25.53 7.82 9.23

10. Computer Hardware 20.20 - - - 20.20 10.77 (0.01) - 2.65 13.43 6.77 9.43

11. Electrical Installation 922.87 8.65 - - 931.52 391.75 0.01 - 71.18 462.92 468.60 531.12

12. Misc. Articles including Library 6.22 - - - 6.22 5.94 - – - 5.94 0.28 0.28

TOTAL 6,524.96 40.51 5.22 — 6,560.25 2,314.42 4.58 — 198.20 2,508.04 4,052.21 4,210.54 47th ANNUAL REPORT

NOTE 3.3 - PROPERTY, PLANT & EQUIPMENT, ETC.

A) LAND (i) Under Section 7 of Public Sector Iron & Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978, land measuring 118.95 acres for residential colony acquired by the Government of India for the erstwhile Hindustan Steel Limited (HSL) was transferred in favour of MECON Limited by the Gazette Notification dated 30.4.1978. Deed of conveyance for land measuring 118.53 acres has been executed by the Government of Jharkhand in favour of MECON Limited on 1st August, 2016. Balance land measuring 0.42 acres has been released and handed over to Government of Jharkhand for road purpose. Out of the land measuring 118.53 acres executed in favour of MECON Limited, 21.06 acres have been allotted to Steel Authority of India Limited (SAIL), Research & Development Centre for Iron & Steel (RDCIS), Ranchi in 1980-81 for which transfer deed is still pending. The amount received / receivable for such transfer has been taken in the accounts. (ii) Under Section 7 of Public Sector Iron & Steel Companies (Restructuring) and Miscellaneous Provisions Act, 1978, land measuring 10.25 acres for the administrative building acquired by the Government of India for the erstwhile Hindustan Steel Limited (HSL) was transferred in favour of MECON Limited by the Gazette Notification dated 30.4.1978. Deed of conveyance in this respect has not yet been executed by the Government of Jharkhand in favour of MECON Limited. Government of Jharkhand has been approached for deed of conveyance in favour of MECON Limited and the matter is in progress. (iii) Deed of conveyance has been executed in favour of MECON Limited by Government of Jharkhand on 1st August, 2016 for land measuring 103.33 acres for township at Ranchi acquired from Govt. of Bihar by the Company in 1978-79. Out of the land measuring 103.33 acres, transfer deed in favour of Steel Authority of India Limited (SAIL), Research & Development Centre for Iron & Steel (RDCIS), Ranchi for 7.43 acres of land and in favour of Steel Authority of India Limited (SAIL), Management Training Institute (MTI), Ranchi for 5.42 acres of land is pending. The amount received / receivable for such transfer has been taken in the accounts. Deed of conveyance has been executed in favour of MECON Limited by Government of Jharkhand on 1st August, 2016 for land measuring 1.50 acres of land for township at Ranchi which was acquired from Govt. of Bihar by the Company in 1983-84. (iv) Out of 223.36 acres of land in possession of the Company in township at Ranchi, 0.856 acres of land is under unauthorised occupation. B) BUILDINGS (i) Office Space / Building at SCOPE Minar, Laxmi Nagar, New Delhi, Gross Block ₹1,193.30 lakhs (Previous Year ₹1,193.30 lakhs) have been acquired from SCOPE on self financing / contribution basis without ownership title deed, the cost of acquisition of Office Space / Building has been considered as Building and depreciation thereon has been provided at the rate as applicable for Building. (ii) Residential buildings at Rourkela, Gross block ₹5.12 lakhs (Previous year ₹5.12 lakhs) and at Durgapur, Gross block ₹8.62 lakhs (Previous year ₹8.62 lakhs) have been constructed on the land belonging to SAIL for which the depreciation is being charged at the rate applicable for Residential Building. (iii) Pending determination of the proportionate value of the land in respect of Buildings acquired at New Delhi, Gaziabad, Navi Mumbai, Bangalore (Austin Town & Rajiv Nagar) and Kolkata the cost of acquisition of flats has been considered as Building and depreciation thereon has been provided at the rate as applicable for Residential Building. C) Assets purchased during the year costing above ₹1,000/- each and upto ₹5,000/- each are fully depreciated in the year of acquisition (Refer Note 2 Sl.No. 2.4.2) w.e.f. 1993-94.

113 MECON MECON Limited

NOTE 4 - CAPITAL WORK-IN-PROGRESS

(₹ in lakhs)

Opening Balance Sl. Balance Additions/ Capitalised/ Particulars Total No. as on Adjustments Adjustments As on As on 01.04.19 31.03.20 31.03.19

1. Installation of Energy 97.79 22.83 120.62 - 120.62 97.79 Meter at Township, Ranchi, Jharkhand

TOTAL 97.79 22.83 120.62 - 120.62 97.79

114 NOTE 5 - OTHER INTANGIBLE ASSETS

As on 31st March, 2020 (₹ in lakhs) COST AMORTISATION NET CARRYING AMOUNT Sl. Inter-Head Inter-Head Particulars As on Addition/ Sale/ As on As on On Sale/ During the Upto As on As on No. Adjust- Adjust- 01.04.19 Adjustment Adjustment 31.03.20 01.04.19 Adjustment period 31.03.20 31.03.20 31.03.19 ment ment 1. Computer Software 1,496.58 97.84 - - 1,594.42 1,336.51 - - 161.68 1,498.19 96.23 160.07 (General) 2. Computer Software 13.23 - - - 13.23 8.73 - - 2.55 11.28 1.95 4.50 (Social Amenities) TOTAL 1,509.81 97.84 - - 1,607.65 1,345.24 - - 164.23 1,509.47 98.18 164.57

As on 31st March, 2019 (₹ in lakhs) COST AMORTISATION NET CARRYING AMOUNT Sl. Inter-Head Inter-Head Particulars As on Addition/ Sale/ As on As on On Sale/ During the Upto As on As on No. Adjust- Adjust- 01.04.18 Adjustment Adjustment 31.03.19 01.04.18 Adjustment period 31.03.19 31.03.19 31.03.18 ment ment 1. Computer Software 1,445.77 50.81 - - 1,496.58 1,231.51 - - 105.00 1,336.51 160.07 214.26 (General) 2. Computer Software 13.23 - - - 13.23 6.19 - - 2.54 8.73 4.50 7.04 (Social Amenities) TOTAL 1,459.00 50.81 — — 1,509.81 1,237.70 — — 107.54 1,345.24 164.57 221.30 47 th ANNUAL REPORT 115 MECON MECON Limited

NOTE 6 - INVESTMENTS (NON-CURRENT)

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Trade Investment - at Cost (Unquoted) i) Investment in Equity Instruments 1) Joint Venture 5000 Equity Shares of Naira 10 each fully paid up being 50% 7.60 7.60 of paid up share capital of M/s Metallurgical & Engineering Consultants (Nigeria) Limited, a Company set up in Nigeria jointly by this Company with two Nigerian Government Companies and Nigerian Citizens Less : Provision for impairment in the value of investment 7.60 - 7.60 - 2) Others 50,00,000 Equity Shares of `10/- each fully paid up of 500.00 500.00 “Neelachal Ispat Nigam Limited”. Less : Provision for impairment in the value of investment 500.00 - 500.00 -

(b) Other Investment - at Cost (Unquoted) Investment in Equity Instruments 1) Others 106,383 Equity Shares of `10/- each fully paid-up 11.92 11.92 of “Global Procurement Consultants Limited”. (Out of the above, 6,383 Equity Shares of `10/- each fully paid-up acquired at a premium of `20/- per share subsequently.) TOTAL 11.92 11.92

a) Aggregate amount of Quoted Investments NIL NIL b) Aggregate amount of Unquoted Investments 519.52 519.52 c) Aggregate provision for impairment of in the value of investment 507.60 507.60

NOTE 7 - TRADE RECEIVABLES (NON-CURRENT)

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 a) Considered Good - Secured - - b) Considered Good - Unsecured 16,432.10 15,099.77 c) Significant increase in Credit Risk 284.28 230.68 d) Credit Impaired 9,318.56 6,780.22 26,034.94 22,110.67 Less : Provision for Bad and Doubtful Trade 9,602.84 7,010.90 Receivables / Expected Credit Loss TOTAL 16,432.10 15,099.77

116 47th ANNUAL REPORT

NOTE 8 - LOANS (NON-CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019

(a) Security Deposits

(i) Government Authorities $ 5.46 5.46 (ii) Others Considered Good - Secured - - Considered Good - Unsecured 193.96 201.83 Significant increase in Credit Risk - - Credit Impaired 94.58 216.30

288.54 418.13

Less : Provision for doubtful deposits 94.58 193.96 216.30 201.83

(b) Loans to Related Parties - -

(i) Advance to Employees $ 0.07 1.63 (ii) Interest Receivable on Advance to Employees $ 0.48 9.83 (iii) Claims Recoverable Considered Good - Secured - - Considered Good - Unsecured 101.54 10.06 Significant increase in Credit Risk - - Credit Impaired 187.51 260.31

289.05 270.37

Less : Provision for Claims Recoverable 187.51 101.54 260.31 10.06

TOTAL 301.51 228.81 $ Considered good - Unsecured NOTE 9 - OTHER FINANCIAL ASSETS (NON-CURRENT) (₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019

(a) Bank Balances 2,005.00 -

(b) Interest accrued but not due 1.31 -

TOTAL 2,006.31 -

117 MECON MECON Limited

NOTE 10 - DEFERRED TAX ASSETS (NET) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019

(a) Deferred Tax Assets

(i) Provision for Bad & Doubtful Debts 3,256.28 2,369.28

(ii) Provision for Gratuity 2,184.80 1,674.89

(iii) Provision for ECL 356.06 318.86

(iv) Provision for LD Recovered 2.77 58.59

(v) Provision for Claims Recoverable 859.94 98.16

(vi) Provision for Doubtful Advances to Suppliers 126.21 126.42

(vii) Provision for Doubtful Deposit with Others 11.90 57.75

(viii) Provision for EMD/SD 269.33 1,629.78

(ix) Provision for Misc. Deductions 719.77 943.85

(x) Provision for Disputed Cases 100.71 99.63

(xi) Provision for Service Tax Receivable 568.30 557.99

(xii) Provision for Stagnant Jobs 820.40 743.40

(xiii) Provision for Output VAT Receivable 155.44 155.49

(xiv) Provision for Doubtful GST Receivable 25.84 6.60

(xv) Prov. for Doubtful STDS Certificate Recv. 40.86 5.79

(xvi) Provision for Bonus 4.09 3.96

(xvii) Prov. for dimunition in the value of 174.72 9,677.42 174.72 9,025.16 Investment

(b) Deferred Tax Liability

(i) Diff. between book and tax depreciation 757.14 635.27

(ii) Sales Tax Paid 168.35 925.49 149.77 785.04

NET DEFERRED TAX ASSET / (LIABILITY) (a) - (b) 8,751.93 8,240.12

118 47th ANNUAL REPORT

NOTE 11 - OTHER NON-CURRENT ASSETS

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Capital Advances - - (b) Advances other than Capital Advances (i) Security Deposits - - (ii) Advances to related parties - - (iii) Other Advances - Advance to Suppliers and Sub-Contractors Considered Good - Secured # 1,376.67 1,695.63 Considered Good - Unsecured - - Considered Doubtful 361.12 361.73 1,737.79 2,057.36 Less : Provision for doubtful advance to Suppliers and Sub-Contractors 361.12 1,376.67 361.73 1,695.63 - Advance to Others $ 96.68 106.08 - Prepaid Expenses $ 17.90 1.55 - Payment against Sales Tax / VAT $ 10.00 10.00 (c) Others - Liquidated Damages Recovered by Clients Considered Good - Unsecured - 235.16 Considered Doubtful 7.92 161.18 7.92 396.34 Less : Provision for doubtful liquidated damages recovered 7.92 - 161.18 235.16 - EMD, SD, PBG and Advance Amount in dispute Considered Good - Unsecured - - Considered Doubtful 700.76 4,612.06 700.76 4,612.06 Less : Provision for doubtful EMD, SD, PBG and Advance Amount in dispute 700.76 - 4,612.06 -

TOTAL 1,501.25 2,048.42 $ considered good - Unsecured # Secured against bank guarantee / materials supplied / work done, as the case may be NOTE 12 - INVENTORIES (₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Stores and Spares 100.05 89.00 (b) Printing and Stationery 48.98 33.49 (c) Computer Consumables 31.88 23.42 Valued as per Accounting Policy (NOTE 2, Sl.No.6) TOTAL 180.91 145.91

119 MECON MECON Limited

NOTE 13 - INVESTMENTS (CURRENT)

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 No of Units Amount No of Units Amount Investment in Mutual Funds (At FVTPL) Investment in Public Sector Debt Mutual Fund (Unquoted) - - TOTAL - -

a) Aggregate amount of Quoted Investments NIL NIL b) Aggregate amount of Unquoted Investments - - c) Aggregate provision for impairment of in the value of NIL NIL investment NOTE 14 - TRADE RECEIVABLES (CURRENT)

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 a) Considered Good - Secured - - b) Considered Good - Unsecured 29,875.89 29,486.34 c) Significant increase in Credit Risk 734.65 681.80 d) Credit Impaired - - 30,610.54 30,168.14 Less : Provision for Bad and Doubtful Trade Receivables / Expected 734.65 681.80 Credit Loss TOTAL 29,875.89 29,486.34 NOTE 15 - CASH AND CASH EQUIVALENTS

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 i) Cash at Bank (Current & Flexi Deposit A/cs) 2,182.60 724.61 ii) Cheques & Drafts on hand - - iii) Cash & Stamps on hand 11.66 5.56 TOTAL 2,194.26 730.17 ¾¾ Cash at Bank (Current & Flexi Deposit A/cs) include amounts held 1,852.09 559.83 in the Separate Bank Accounts maintained on behalf of Clients. NOTE 16 - OTHER BANK BALANCES

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Fixed Deposits with more than 3 months maturity which are 36,355.00 52,210.59 due for maturity within 12 months from balance sheet date (b) Interest accrued but not due on Fixed Deposits 745.79 1,201.53 TOTAL 37,100.79 53,412.12 ¾¾ Other Bank Balances include amounts earmarked / available for specified purposes as under : i) CSR and SD Expenditure 216.51 527.11 ii) Research & Development Expenditure 169.45 162.58 iii) Corporate Sports Expenditure 90.00 60.00 ¾¾ Other Bank Balances include amounts held as margin 9,201.00 9,201.00 money & security under lien against borrowings, etc. ¾¾ Other Bank Balances include Deposits with more than 12 - - months maturity

120 47th ANNUAL REPORT

NOTE 17 - LOANS (CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019

(a) Security Deposits

Deposit with Others

Considered Good - Secured - -

Considered Good - Unsecured 133.62 146.75

Significant increase in Credit Risk - -

Credit Impaired 9.41 0.84

143.03 147.59

Less : Provision for Doubtful Deposit with Others 9.41 133.62 0.84 146.75

(b) Loans to Related Parties - -

(i) Advance to Employees

Considered Good - Secured ## - 0.02

Considered Good - Unsecured 316.54 273.09

Significant increase in Credit Risk - -

Credit Impaired - 316.54 - 273.11

(ii) Interest Receivable on Advance to 2.64 2.30 Employees ##

(iii) Claims Recoverable

Considered Good - Secured - -

Considered Good - Unsecured 332.80 335.93

Significant increase in Credit Risk - -

Credit Impaired 2,273.41 20.61

2,606.21 356.54

Less : Provision for Doubtful Claims Recoverable 2,273.41 332.80 20.61 335.93

TOTAL 785.60 758.09

## Secured against buildings and vehicles

121 MECON MECON Limited

NOTE 18 - OTHER FINANCIAL ASSETS (CURRENT)

(₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019

(a) Jobs-in-Progress for Consultancy Services 9,089.47 10,001.27

Valued as per Accounting Policy (NOTE 2, Sl.No.9) Less : Provision for Stagnant Jobs-in- Progress 2,347.75 6,741.72 2,127.40 7,873.87 (b) Other Receivables 168.85 279.49

TOTAL 6,910.57 8,153.36

NOTE 19 - CURRENT TAX ASSETS (NET)

(₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019

Payment against Income Taxes (Net) 10,533.50 9,706.90

CURRENT TAX ASSETS / (LIABILITIES) 10,533.50 9,706.90

NOTE 20 - OTHER CURRENT ASSETS

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Advances other than capital advances (i) Security Deposits - - (ii) Advances to related parties - - (iii) Other Advances - Advances to Contractors $ 15.35 9.28 - Advance to Suppliers and Sub- Contractors Considered Good - Secured # 826.69 792.83 Considered Good - Unsecured 69.12 69.12 Considered Doubtful 0.06 0.06 895.87 862.01 Less : Provision for doubtful advance to Suppliers and Sub- Contractors 0.06 895.81 0.06 861.95 - Advance to Others & Canteen $ 10.90 32.19 - Prepaid Expenses $ 25.08 49.10 $ Considered good - Unsecured # Secured against bank guarantee / materials supplied / work done, as the case may be

122 47th ANNUAL REPORT

NOTE 20 - OTHER CURRENT ASSETS (Contd.)

(₹ in lakhs) Particulars AS AT 31.03.2020 AS AT 31.03.2019 - Payment against Sales Tax / VAT 1,020.26 1,104.73 (Net) $ - VAT Credit Receivable (INPUT) $ - 4.57 - OUTPUT VAT Receivable Considered Good - Unsecured 40.67 43.55 Considered Doubtful 19.96 19.96 60.63 63.51 Less : Provision for Output VAT Receivable 19.96 40.67 19.96 43.55 - VAT / CST Receivable Considered Good - Unsecured - - Considered Doubtful 424.89 425.01 424.89 425.01 Less : Provision for VAT Receivable 424.89 - 425.01 - - Service Tax Receivable Considered Good - Unsecured 24.59 126.94 Considered Doubtful 1,626.31 1,596.80 1,650.90 1,723.74 Less : Provision for Service Tax Receivable 1,626.31 24.59 1,596.80 126.94 - GST Receivable Considered Good - Unsecured 6,563.58 6,037.06 Considered Doubtful 73.96 18.90 6,637.54 6,055.96 Less : Provision for GST Receivable 73.96 6,563.58 18.90 6,037.06 (b) Others - Liquidated Damages Recovered by Clients Considered Good - Unsecured - - Considered Doubtful - 6.49 - 6.49 Less : Provision for doubtful - - 6.49 - liquidated damages recovered

TOTAL 8,596.24 8,269.37 $ Considered good - Unsecured

123 MECON MECON Limited

NOTE 21 : EQUITY SHARE CAPITAL

(₹ in lakhs) AS AT 31.03.2020 AS AT 31.03.2019 AUTHORISED# Equity Shares 4,10,00,000 (Previous year 4,10,00,000) Equity Shares of 4,100.00 4,100.00 ` 10/- each 4,100.00 4,100.00 ISSUED, SUBSCRIBED AND FULLY PAID UP Equity Shares 4,01,38,360 ( Previous year 4,01,38,360) Equity Shares of 4,013.84 4,013.84 ` 10/- each with voting rights. a) 4,01,38,120 equity shares are held as fully paid-up by the President of India. b) 120 equity shares are held as fully paid-up by the Govt. Director of the company. c) 120 equity shares are held as fully paid- up by the Chairman and Managing Director of the company. Out of the total shares, ¾¾ 20,14,800 equity shares are allotted as fully paid- up for consideration other than cash, pursuant to the Government of India, Ministry of Steel & Mines letter No. 6(100)/78-SAIL(1) dated 15th May, 1979 as consideration for net book value of immovable assets of M/s Hindustan Steel Limited at Ranchi transferred to the Company. ¾¾ 4,03,060 equity shares are allotted as fully paid-up Bonus Shares during 1996-97 ¾¾ 77,20,000 equity shares are allotted as fully paid-up against conversion of Govt. of India Loan and Interest on Loan vide Government of India, Ministry of Steel Order No.4(46)/2004-HSM dated 30th March,2007 TOTAL 4,013.84 4,013.84 # The Authorised Share Capital of the Company is ₹104,00,00,000/- (Previous Year ₹104,00,00,000/-) divided into 4,10,00,000 (Previous Year 4,10,00,000) Equity Shares of ₹10/- (Previous Year ₹10/-) each and 6,30,00,000 (Previous year 6,30,00,000) 5% Non-Cumulative Redeemable Preference Shares of ₹10/- (Previous Year ₹10/-) each. Authorised Share Capital of 5% Non-Cumulative Redeemable Preference Shares is not considered above in accordance with the requirement of Ind AS.

RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING AS AT 31.03.2020 AS AT 31.03.2019 Equity Shares Number of Shares Outstanding at the beginning 4,01,38,360 4,01,38,360 Number of Shares Issued during the period - - Number of Shares Bought Back during the period - - Number of Shares Outstanding at the end 4,01,38,360 4,01,38,360

124 47th ANNUAL REPORT

NOTE 22 : OTHER EQUITY (₹ in lakhs) AS AT 31.03.2020 AS AT 31.03.2019 A. RESERVES AND SURPLUS Capital Redemption Reserve $ As per last Balance Sheet 6,300.00 6,300.00 CSR Activity Reserve $$ As per last Balance Sheet 71.04 - Add : Transferred from Surplus 19.92 87.96 Less : Transferred to Surplus 55.52 35.44 16.92 71.04 General Reserve $$$ As per last Balance Sheet 9,852.39 9,852.39 Add : Transferred from Surplus - 9,852.39 - 9,852.39 Retained Earnings $$$$ As per last Balance Sheet 16,210.91 2,660.70 Add/ (Less): Adjustment due to Ind AS - 13,485.57 Implementation Add : Net Profit / (Loss) from Statement of 6,900.43 1,374.01 Profit and Loss Add : Transferred from CSR Activity 55.52 16.92 Reserve Amount available for appropriation 23,166.86 17,537.20 Less : Transferred to CSR Activity Reserve 19.92 87.96 Less : Dividend on Equity Shares - 1,027.19 Less : Dividend Distribution Tax - 211.14 Less : Transferred to General Reserve - 23,146.94 - 16,210.91 B. OTHER COMPREHENSIVE INCOME # As per last Balance Sheet (2,402.23) (2,242.86) Add : Other Comprehensive Income from Statement of Profit and Loss (1,122.24) (3,524.47) (159.37) (2,402.23)

TOTAL 35,810.30 30,032.11

$ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act. $$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc. $$$ As per provisions of the Companies Act, the General Reserve is created out of the accumulated profits of the Company. $$$$ Retained Earnings represent the amount of accumulated earnings of the Company after considering Dividend including Dividend Distribution Tax paid during the year, net adjustment due to CSR Activity, net cumulative impact of transition to adoption of Ind AS 115 and the profits made by the Company during the year. # As per provisions of the Companies Act, Other Comprehensive Income represents balance arising on account of gains / losses booked on Re-measurement of Net Defined Benefit Plans.

125 MECON MECON Limited

NOTE 23 - TRADE PAYABLES (NON-CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 Trade Payables i) Dues to Micro & Small Enterprises (Refer Note 1,333.02 1,279.31 41.20) ii) Others 2,730.78 5,828.73

TOTAL 4,063.80 7,108.04

NOTE 24 - OTHER FINANCIAL LIABILITIES (NON-CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Other Payables (i) Sundry Creditors 172.01 172.01 (ii) Securities and Other Deposits 465.30 361.37 (iii) Deposit under Employees Family Benefit 271.83 297.31 Scheme (iv) Liability for Employees 121.77 97.76 TOTAL 1,030.91 928.45

NOTE 25 - PROVISIONS (NON-CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Provision for Employee Benefits (i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation) 4,923.92 3,703.31 (ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation) 12,470.32 11,472.26 (iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation) 6,672.12 6,631.11 (iv) Provision for Employee Defined Contribution 1,950.05 15,912.60 Schemes 26,016.41 37,719.28 (b) Other Provisions (i) Provision for Miscellaneous Deduction by Clients 1,937.37 2,636.70 (ii) Provision for Disputed Cases 288.21 285.12 TOTAL 28,241.99 40,641.10

126 47th ANNUAL REPORT

NOTE 26 - OTHER NON-CURRENT LIABILITIES (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (i) Advances from Clients 11.19 1,887.11 (ii) Liquidated Damages Recovered from Parties 441.64 468.92 TOTAL 452.83 2,356.03

NOTE 27 - TRADE PAYABLES (CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 Trade Payables (i) Dues to Micro & Small Enterprises (Refer Note 2,337.58 2,549.04 41.20) (ii) Others 10,394.06 8,998.05 TOTAL 12,731.64 11,547.09

NOTE 28 - OTHER FINANCIAL LIABILITIES (CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Current Maturity of Non-Current Borrowings - - (b) Interest accrued but not due on borrowings - - (c) Interest accrued and due on borrowings - - (d) Other Payables (i) Sundry Creditors 3,739.13 3,254.35 (ii) Securities and other deposits 554.21 453.99 (iii) Deposit under Employees Family Benefit 86.98 46.67 Scheme (iv) Liability for Employees 4,100.08 4,070.04 (v) Invoice raised but not accrued (Net) 23,684.25 19,640.19 TOTAL 32,164.65 27,465.24

NOTE 29 - OTHER CURRENT LIABILITIES (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (i) Advances from Clients 2,962.38 7,336.82 (ii) Deposit from Clients (Deposit Works) 1,289.85 1,405.94 (iii) Liquidated Damages Recovered from Parties 11.97 80.24 (iv) VAT / Central Sales Tax Liability 140.53 123.76 (v) Service Tax Liability 1.11 0.41 (vi) GST Payable 2,276.37 1,611.04 (vii) Others (including CSR / SD / R&D Fund) 529.06 704.50 TOTAL 7,211.27 11,262.71

127 MECON MECON Limited

NOTE 30 - PROVISIONS (CURRENT) (₹ in lakhs)

Particulars AS AT 31.03.2020 AS AT 31.03.2019 (a) Provision for Employee Benefits (i) Provision for Gratuity (Present Value of 1,328.37 1,089.77 Defined Benefit Obligation as per actuarial valuation) (ii) Provision for Leave Encashment (Present 1,238.31 912.18 Value of Defined Benefit Obligation as per actuarial valuation) (iii) Provision for Other Employee Defined 464.73 258.09 Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation) 3,031.41 2,260.04 (b) Other Provisions (i) Provision for Bonus 11.71 11.34 (ii) Provision for Expenses & Contractual 3,255.04 5,815.14 Obligations (iii) Provision for Miscellaneous Deductions by 122.41 64.33 Clients TOTAL 6,420.57 8,150.85

NOTE 31 - REVENUE FROM OPERATIONS (₹ in lakhs)

Particulars 2019-20 2018-19 (a) Revenue from Consultancy Services 34,297.72 37,612.12 (b) Revenue from Construction Contracts 14,889.13 9,405.12 (c) Revenue from Procurement Services 6,930.41 - (d) Other Operating Revenue (i) Provision no longer required written back (Direct) 6,816.63 869.17 (ii) Others 1,817.58 33.95 TOTAL 64,751.47 47,920.36

NOTE 31.1 - GROSS INCOME DERIVED FROM SERVICES RENDERED [Refer Note 31(a), Note 31(b) and Note 31 (c)] (₹ in lakhs)

Particulars 2019-20 2018-19 (a) Engineering, Technical Consultancy, Project Management Services, etc. - Domestic 33,874.32 37,149.74 (b) Engineering, Technical Consultancy, Project Management Services, etc. - Foreign 423.40 462.38 (c) Execution of Construction Contracts/EPC Contracts including Supply of Equipment & 14,889.13 9,405.12 Components, etc. (d) Execution of Procurement Services 6,930.41 - TOTAL 56,117.26 47,017.24

128 47th ANNUAL REPORT

NOTE 32 - OTHER INCOME (₹ in lakhs)

Particulars 2019-20 2018-19

(a) Interest Income

(i) Interest from Bank (Tax deducted at Source ` 293.11 lakhs) (CPLY ` 231.52 lakhs) 2,936.53 3,770.76

(ii) Interest on Advances to Employees for Conveyance and House Building 0.10 0.06

(b) Dividend Income from Non-Current Investment 1.60 1.60

(i) Gain / (Loss) on Redemption of Investments in Mutual Funds 6.96 -

(ii) Profit on Sale / Disposal of Fixed Assets 6.18 5.16

(iii) Income from Township 1,250.99 1,154.48

(iv) Provision no longer required written back 536.60 2.37

(v) Miscellaneous Income 95.76 185.26

TOTAL 4,834.72 5,119.69

NOTE 33 - PURCHASE OF EQUIPMENTS & DIRECT EXPENSES (₹ in lakhs)

Particulars 2019-20 2018-19

(a) Purchase of Equipments & Components for execution of jobs 2,221.51 2,985.37

(b) Expenses on Sub-Contractors & Others for execution of jobs 9,088.54 5,880.77

(d) Provision for Expenses & Contractual Obligations for execution of jobs 27.34 204.22

TOTAL (a)+(b)+(c)+(d) 17,001.94 9,070.36

NOTE 34 - (ACCRETION) / DECRETION TO JOBS-IN-PROGRESS (₹ in lakhs)

Particulars 2019-20 2018-19

(a) Opening Jobs-in-Progress (Consultancy) 10,001.27 11,993.55

(b) Closing Jobs-in-Progress (Consultancy) 9,089.47 10,001.27

(a)-(b) 911.80 1,992.28

129 MECON MECON Limited

NOTE 35 - EMPLOYEE BENEFITS EXPENSES (₹ in lakhs) Particulars 2019-20 2018-19 (a) Salaries & Wages - Salary and Allowances 20,195.59 18,530.26 - Leave Encashment 1,781.99 1,685.23 - Perks and Allowances 3,174.94 3,231.11 - Bonus 4.76 3.21 - Superannuation Benefits 1,239.65 1,795.46 Sub-Total 26,396.93 25,245.27

(b) Company’s Contribution to Provident and Other Fund 3,000.53 2,664.80 (c) Staff Welfare Expenses - Education 3.36 3.90 - Medical 471.91 541.12 - Social & Cultural Activities 85.24 59.74 - Rent (Residential) 9.68 0.14 - Group Insurance Premium 7.12 10.77 - Staff Welfare (Others) 254.04 296.71 Sub-Total 831.35 912.38

TOTAL (a)+(b)+(c) 30,228.81 28,822.45

NOTE 36 - FINANCE COSTS (₹ in lakhs) Particulars 2019-20 2018-19 (a) Interest Interest on Loan from Banks 45.26 71.60 Sub-Total (a) 45.26 71.60 (b) Other Borrowing Costs i) Bank Charges 38.81 17.38 ii) Bank Guarantee Commission 91.47 53.13 Sub-Total (b) 130.28 70.51

TOTAL (a) + (b) 175.54 142.11

NOTE 37 - DEPRECIATION AND AMORTISATION EXPENSES (₹ in lakhs) Particulars 2019-20 2018-19 a) Depreciation 557.91 658.79 b) Amortisation 164.23 107.54 TOTAL (a) + (b) 722.14 766.33

130 47th ANNUAL REPORT

NOTE 38 - OTHER EXPENSES (₹ in lakhs) Particulars 2019-20 2018-19 1. Travelling Expenses 1,666.30 1,631.63 2. Foreign Deputation 104.45 183.02 3. Maintenance & Repairs to Buildings 1,339.48 1,127.59 4. Repairs (Others) 42.01 39.09 5. Stores & Spares consumed 103.57 69.91 6. Printing & Stationery consumed 87.97 95.79 7. Expenses on Computer Consumables 42.69 38.50 8. Rent (Non-residential) 430.73 416.35 9. Rates & Taxes 81.64 103.54 10. Advertisement & Publicity 94.56 130.94 11. Payment to Auditors : - As Statutory Auditor 4.00 3.00 - For Income Tax / GST Audit Matters 3.50 4.48 - For Quarterly Audit 3.00 1.80 - For reimbursement of expenses 3.41 13.91 2.90 12.18 12. Insurance 11.04 7.35 13. Training Expenses : - Inland 88.35 59.14 - Foreign - 88.35 - 59.14 14. Postage & Telecommunications 102.97 114.06 15. Computer Services 147.04 174.59 16. Power and Fuel 499.36 581.65 17. Legal & Professional Charges 156.70 175.33 18. Assets Charged to Revenue 2.07 0.93 19. Other Administrative and Misc. Expenses 1,022.37 1,099.17 20. Expenses on CSR and Sustainable Development 55.52 16.92 21. Expenses on Research & Development 6.87 29.00 22. Expenses on Corporate Sports Fund 30.00 60.00 23. Loss on Sale / Disposal of Fixed Assets - 0.17 24. Provisions - Provision for Doubtful Trade Receivables / ECL 2,648.56 2,644.03 - Provision for Claims Recoverable 2,210.47 143.97 - Provision for Doubtful Deposit with Others 0.60 5.54 - Provision for Earnest Money Deposit 18.09 24.43 - Provision for Stagnant Jobs-in-Progress 340.89 1,114.31 - Provision for LD Recovered by Clients - 10.78 - Provision for Service Tax Receivable 67.75 747.64 - Provision for VAT / Cess Receivable 7.07 41.70 - Provision for GST Receivable 68.99 18.90 - Provision for Doubtful ITDS Credit 17.63 - - Provision for Doubtful STDS Credit 100.37 - - Provision for Doubtful Advance Fringe Benefit Tax 59.40 - - Provision for Misc. Deduction by Clients 157.60 330.93 25. Write Offs - Bad Debts Written Off 1.81 - - STDS Certificate Receivable Written Off - - - ITDS Certificate Receivable Written Off 13.73 - - Advances / Deposits / Receivable written off - - TOTAL 11,842.56 11,249.08

131 MECON MECON Limited

NOTE 39: CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

(₹ in lakhs)

Particulars 31.03.2020 31.03.2019 39.1 Contingent Liabilities i) Claims against Company under liquidated damage clause by the NIL NIL Clients. ii) Income tax in dispute / under appeal 781.60 781.60 iii) Sales tax demands pending appeals with Appellate Authorities. 2,065.05 2,197.85 iv) Excise Duty / Service Tax demands pending appeals with Appellate 230.65 230.65 Authorities. v) Claims against Company by Contractors / Suppliers, etc. pending 7,590.72 9,990.61 final decision. vi) Claims against Company for electricity supply by Jharkhand Urja 1,958.93 1,958.93 Vikas Nigam Limited (JUVNL) in dispute ₹2,486.07 lakhs. Out of this, ₹527.14 lakhs is paid / provided in accounts pending final decision during the FY 2015-16. vii) The Regional Provident Fund Commissioner-II, Jharkhand, 322.91 322.91 Ranchi ordered for payment of ₹385.27 lakhs by way of interest and penalty to the BOT, arising out of delayed remittances by the company to the BOT, MECON Employees PF Trust. The company disputed the same and filed an appeal with EPF, Appellate Tribunal, New Delhi after depositing ₹96.32 lakhs as interim adhoc advance. The Hon’ble High Court of Jharkhand, vide order dated 30th July, 2012 has directed Provident Fund Commissioner, Ranchi to decide the question of delay in payment and determine the quantum of damages with a view to re-assess the liability of the Company, setting aside all earlier orders. RPFC has worked out liability of ₹326.02 lakhs vide their letter dated 28.08.2013. Provision of ₹3.11 lakhs has been made during 2013-14 based on Company’s calculation pending final decision. Out of the above, the Regional Provident Fund Commissioner-I, Jharkhand, Ranchi vide their letter dated 17.03.2015, demanded ₹116.86 lakhs towards interest and penalty, arising out of delayed remittances of PF and Pension amounts for the period from April, 1971 to February, 2001. Writ Petition has been filed before Hon’ble Jharkhand High Court against the order dated 14.02.2017 passed by EPF, Appellate Tribunal, New Delhi. viii) Arrears Perks and Allowances in respect of executive employees 3,079.66 3,079.66 for the period 26.11.2008 to 20.10.2009 as estimated following the order no. O.A. 350/00191/2014 dated 15.02.2016 issued by the Central Administrative Tribunal, Calcutta Bench. The matter is in dispute and is pending before the Hon’ble Calcutta High Court as intimated by the Ministry of Steel.

132 47th ANNUAL REPORT

(₹ in lakhs)

Particulars 31.03.2020 31.03.2019 ix) Interest on arrear perks and allowances in respect of executive 5,792.84 5,238.50 employees as determined upto 31.03.2020 following order no. O.A. 350/00191/2014 dated 15.02.2016 passed by the Central Administrative Tribunal, Calcutta Bench, pending final decision. 39.2 Commitments Estimated amount of contracts/orders remaining to be executed/ 68.12 205.02 supplied on capital account and not provided for

NOTE 40: PROPOSED DIVIDEND (₹ in lakhs)

Particulars 2019-20 2018-19 Proposed Dividend on Equity Shares Total Dividend (₹ in lakhs) 2,167.43 NIL Dividend per share (₹) 5.40 NIL Dividend distribution tax on Proposed dividend NA NIL

NOTE 41: ADDITIONAL INFORMATION AND OTHER DISCLOSURES (₹ in lakhs) Particulars 2019-20 2018-19 41.1 Letters of Credit opened with Bankers for purchase of equipment NIL 11.42 & components and technical services. 41.2 Guarantees given by Banks for and on behalf of the Company to 19,177.87 17,504.36 different clients etc. 41.3 Earnings in Foreign Exchange 423.40 462.38 Fees for services rendered 41.4 Expenditure in Foreign Currency (i) Professional and Consultation Fees NIL 143.27 (ii) Other matters 125.58 125.58 132.26 275.53 41.5 Value of Imports (Calculated on CIF basis) (i) Equipment, components & spares parts used in construction 10.95 83.96 contract (ii) Capital goods NIL 10.95 NIL 83.96 41.6 (i) Expenses on Advertisement & Publicity (a) Advertisement 12.75 27.51 (b) Publicity 81.81 94.56 103.43 130.94 (ii) Expenses on Public Relation Establishment 77.35 38.90 41.7 Expenses on Engineering, Research & Development Wing / establishment, including capital assets (a) Salary & Wages, etc. 106.09 106.02 (b) Expenses out of R&D Fund NIL 106.09 1.88 107.90

133 MECON MECON Limited

41.8 PARTICULARS OF PROVISIONS (₹ in lakhs) Provision Provi- Provision Provi- Provi- Provision Provision Provi- for doubtful sion for Pro- for Liq- sion for sion for for Disput- for Bad & sion for advanc- Miscel- vision uidated Doubtful Doubtful ed Cases, PARTICULARS Doubtful Claims es to laneous for Damages Earnest Deposit Stagnant Trade Re- Recover- suppliers/ Deduc- Bonus recovered Money with jobs, EMD, ceivables able sub-con- tions by by Clients Deposit Others SD, etc tractors Clients Opening Balance as 11.34 6,780.22 167.67 280.92 51.87 165.27 361.79 2,701.03 9,176.55 on 01.04.2019 (10.69) (4,208.92) (374.96) (136.95) (27.44) (159.73) (361.79) (2,988.36) (10,706.05) Add: Provision made 7.88 2,542.11 NIL 2,210.47 18.09 0.60 NIL 154.52 665.18 during the year (6.64) (2,870.56) (10.78) (143.97) (24.43) (5.54) (NIL) (330.93) (3,149.13) Add / (Less): Inter- NIL 83.66 (83.66) NIL NIL NIL NIL NIL NIL Head Adjustment (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) Less: Provision utilised 4.24 36.56 1.62 0.76 NIL 67.17 0.61 756.38 3,913.79 during the year (2.56) (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) (NIL) (56.12) Less: Unused 3.27 50.87 74.47 29.71 NIL 64.67 NIL 39.39 176.53 provision reversed (3.43) (299.26) (218.07) (NIL) (NIL) (NIL) (NIL) (618.26) (4,622.51) during the year Closing Balance as 11.71 9,318.56 7.92 2,460.92 69.96 34.03 361.18 2,059.78 5,751.41 on 31.03.2020 (11.34) (6,780.22) (167.67) (280.92) (51.87) (165.27) (361.79) (2,701.03) (9,176.55) Figures in bracket relates to previous year 41.9 DISCLOSURE UNDER IND AS -19 ON “EMPLOYEE BENEFITS” A Defined Benefit Scheme A.1 General Description of Defined Benefit Schemes: Gratuity : Payable on separation @ 15 days salary for each completed year of service or part thereof in excess of six months to eligible employees who render continuous service of 5 years or more. Beyond 30 years of service, gratuity is payable at the rate of one month’s / 30 days salary for each completed year of service in excess of 30 years. The maximum limit of gratuity is ₹20.00 lakhs w.e.f. 29.03.2018. Leave Encashment : Payable on separation to eligible employees who have accumulated earned leave and half pay leave. Maximum limit of accumulation is 300 days (both earned leave and half pay leave taken together). However, no commutation of HPL would be permissible for the purpose of encashment of 300 days leave as above. Employees in service become entitled to en-cash accumulated earned leave standing to his / her credit when the earned leave has accumulated 300 days, subject to maximum earned leave encashment allowed upto 30 days in a calendar year. Provident Fund : 12% of Basic Pay & Dearness Allowance contributed to the Provident Fund Trust by the Company. Post Retirement : Available to the employees and his spouse after separation (Superannuation/ Medical Benefits death) at Company’s hospitals / under Health Insurance scheme / a fixed amount of ₹2,400/- p.a. under Outdoor Medical Treatment (ODMT) scheme, as applicable. Post Retirement : Payable to employees / spouse on separation (Superannuation, Voluntary Settlement Retirement, Death, Discharge on medical ground and resignation after the age Benefits of 57 years) for settlement upto their home town. Employees’ Family : Monthly payments to disabled separated employees / legal heirs of deceased Benefit Scheme employees in lieu of prescribed deposit till the notional date of superannuation. Long Service : Payable in kind on rendering 15 years of service and also on rendering 30 years Award of service. Retirement Gift : Payable in kind on retirement. LTC/LTA : Non-executive regular employees are entitled to one LTC and one LTA according to rates in the eligible grade, in a block of four years.

134 A.2 Reconciliation of Present Value of Defi ned Benefi t Obligation (DBO) (₹ in lakhs) 1 2 3 4 5 6 7 8

Post Post Employee Leave Retirement Retirement Retirement Long Service Sl. Particulars Gratuity Family Benefit LTC/LTA Encashment Medical Settlement Gift Award Scheme Benefits Benefits

1 P.V. of DBO (Opening) 9,425.54 12,384.44 2,351.79 156.42 266.58 35.46 63.50 62.71

P.V. of DBO (Opening)(Previous Year) 9,127.84 11,980.00 1,976.53 181.34 222.06 24.04 25.78 71.93

2 Current Service Cost 363.45 834.58 - 9.05 - 1.72 4.56 -

Current Service Cost (Previous Year) 297.42 763.14 - 7.99 - 1.55 43.44 -

3 Interest Cost 684.21 947.41 179.91 11.97 20.39 2.71 4.57 4.80

Interest Cost (Previous Year) 693.71 910.48 150.22 13.78 16.88 1.83 1.96 5.47

4 Actuarial Loss/ (Gain) 765.77 744.91 167.90 1.19 29.74 4.19 (3.14) 14.47

Actuarial Loss/ (Gain) (Previous Year) 185.60 (392.63) 339.73 (38.83) 89.65 8.76 (1.23) (5.13)

5 Premium Paid (21.54) ------

Premium Paid (Previous Year) (21.78) ------

6 Past Service Cost ------

Past Service Cost (Previous Year) ------47 7 Benefit Paid (1,134.21) (1,202.71) (130.15) (4.99) (48.77) (5.58) - (16.88) th ANNUAL REPORT Benefit Paid (Previous Year) (857.25) (876.55) (114.69) (7.86) (62.01) (0.72) (6.45) (9.56)

8 P.V. of DBO (Closing) 10,083.22 13,708.63 2,569.45 173.64 267.94 38.50 69.49 65.10 135 P.V. of DBO (Closing) (Previous Year) 9,425.54 12,384.44 2,351.79 156.42 266.58 35.46 63.50 62.71 MECON MECON Limited

A.3 Reconciliation of Fair Value of Plan Assets and Obligations. The company has wholly/partly funded the gratuity liability through a separate Gratuity Fund. The fair value of the plan assets is mainly based on the information given by LIC through whom the investments have been made by the Fund. Investments of the fund is also made in flexi deposit account with Banks. The reconciliation of Fair Value of Plan Assets of the Gratuity Fund and Defined Benefit Gratuity obligations are as under: (₹ in lakhs)

Sl. Particulars As on 31.03.2020 As on 31.03.2019

1 F.V of Plan Assets (Opening) 4,632.46 5,107.85

2 Interest Income 274.83 349.21

3 Benefit Payment (1,097.53) (845.94)

4 Contributions made 21.17 21.34

5 Actuarial (Loss)/ Gain - -

6 F.V. of Plan Assets (Closing) 3,830.93 4,632.46

7 P.V. of D.B.O. (Closing) 10,083.22 9,425.54

Net liability / (assets) recognised in the Balance Sheet 6,252.29 4,793.08

The Company expects to contribute the amount to the Gratuity Fund during the Year 2020-21 after considering liability and fund position. A.4 Provident Fund Company’s contribution paid/payable during the year to the Provident Fund Trust are recognised in the Statement of Profit & Loss. The Company’s Provident Fund Trust is exempted under section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the Trusts vis- a-vis statutory rate. The Company has already made adequate provisions in the accounts based on actuarial valuation of Provident Fund. The defined benefit obligations, other than Gratuity and Provident fund, are unfunded.

136 A.5 Expenses recognised in Statement of Profi t & Loss (₹ in lakhs) 1 2 3 4 5 6 7 8 Post Post Employee Long Sl. Particulars Leave Retirement Retirement Family Retirement Gratuity Service LTC/LTA Encashment Medical Settlement Benefit Gift Award Benefits Benefits Scheme 1 Current Service Cost 363.45 834.58 - 9.05 - 1.72 4.56 - Current Service Cost (Previous Year) 297.42 763.14 - 7.99 - 1.55 43.44 - 2 Past Service Cost ------Past Service Cost (Previous Year) ------3 Interest Cost 684.21 947.41 179.91 11.97 20.39 2.71 4.57 4.80 Interest Cost (Previous Year) 693.71 910.48 150.22 13.78 16.88 1.83 1.96 5.47 4 Interest Income on Plan Assets (296.37) ------Interest Income on Plan Assets (Previous Year) (388.20) ------Expenses Recognised in statement of Profit and Loss 751.29 1,781.99 179.91 21.02 20.39 4.43 9.13 4.80 Expenses Recognised in statement of Profit and Loss (Previous Year) 602.93 1,673.62 150.22 21.77 16.88 3.38 45.40 5.47

A.6 Expenses recognised in Other Comprehensive Income (₹ in lakhs) 1 2 3 4 5 6 7 8 Post Post Employee Long Sl. Particulars Leave Retirement Retirement Family Retirement Gratuity Service LTC/LTA Encashment Medical Settlement Benefit Gift Award Benefits Benefits Scheme 1 Re-measurements due to changes in Demographic Assumptions 1.59 (102.56) 1.20 0.88 (0.03) (0.02) (0.05) 0.12 Re-measurements due to changes in Demographic Assumptions ------(Previous Year) 2 Re-measurements due to changes in Financial Assumptions 652.17 1,192.24 16.85 2.25 3.31 1.25 2.19 2.47 Re-measurements due to changes in Financial Assumptions (Previous (37.60) (59.96) (11.76) (0.55) - (0.12) (0.25) - Year) 3 Re-measurements due to changes in Experience Adjustments 53.63 (344.77) 149.85 (1.94) 26.46 2.96 (5.28) 11.88 47 Re-measurements due to changes in Experience Adjustments 223.20 (332.67) 351.49 (38.28) 89.65 8.88 (0.98) (5.13) th

(Previous Year) ANNUAL REPORT 4 Return on Plan Assets (excluding Interest Income) 58.38 ------Return on Plan Assets (excluding Interest Income) (Previous Year) 17.21 ------Expenses recognised in Other Comprehensive Income 765.77 744.91 167.90 1.19 29.74 4.19 (3.14) 14.47 137 Expenses recognised in Other Comprehensive Income (Previous Year) 202.81 (392.63) 339.73 (38.83) 89.65 8.76 (1.23) (5.13) MECON MECON Limited

A.7 Actuarial Assumptions

2019-20 2018-19 1 Discount Rate (per annum) 6.75% 7.65% 2 Mortality Rate Indian Assured Lives Mortality Indian Assured Lives Mortality (2012-14) Ultimate (2006-08) Ultimate 3 Withdrawal Rate 0.10% to 0.50% depending on age 0.10% to 0.50% depending on age (per annum) group. 10% flat at all age groups for group. 10% flat at all age groups Contract Employees for Contract Employees 4 Medical Inflation Rate 12% for first 5 years and thereafter 12% for first 5 years and thereafter (per annum) 8% 8% 5 Rate of return on Plan 7.05% - 7.65% 7.29% - 7.80% Assets (per annum) 6 Salary Escalation 16% on Basic Pay 16% on Basic Pay (per annum) The estimate of future salary increase considered in actuarial valuation, takes into account inflation rate, seniority, promotion and other relevant factors.

A.8 Financial Assumptions Sensitivity Analysis (₹ in lakhs)

0.5 %age 0.5 %age 0.5 %age 0.5 %age Sl. decrease in increase in Particulars decrease in increase in No. Discount Discount Salary Rate Salary Rate Rate Rate 1 Gratuity 10,488.57 9,708.87 9,895.98 10,229.48 2 Leave Encashment 14,459.68 13,022.79 13,021.25 14,454.20 3 Post Retirement Settlement Benefits 180.93 166.40 166.37 180.89 4 Employee Family Benefit Scheme 271.66 264.29 - - 5 Retirement Gift 40.41 36.62 - - 6 Long Service Award 72.27 66.69 - - 7 LTC/LTA 66.17 64.07 - -

A.9 Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme: (₹ in lakhs)

One percentage point One percentage point Sl. Particulars increase in medical decrease in medical No. inflation rate inflation rate 1 Increase/(decrease) on aggregate service cost and interest cost of post retirement 18.20 (17.68) medical benefits 2 Increase/(decrease) on present value of post retirement benefit obligations as at 31st 351.77 (388.15) March, 2020

138 47th ANNUAL REPORT

A.10 Expected Cash Flows for the following years (₹ in lakhs)

Period Gratuity Leave Encashment Year 1 1,328.37 1,238.31 Year 2 1,065.65 894.67 Year 3 998.00 1,028.21 Year 4 676.91 749.20 Year 5 661.63 756.84 Year 6 575.38 745.50 Next 6 years 4,777.28 8,295.90 B Defined Contribution Scheme B.1 Post Retirement Pension Benefits The Company has Defined Pension Contribution Scheme for employees through a separate trust. The Company’s Contribution paid / payable under the Pension Contribution Scheme for executive employees is w.e.f. 01.01.2007 and for non-executive employees is w.e.f 01.01.2012. B.2 Expenses recognised in Statement of Profit & Loss for the year (₹ in lakhs)

Particulars Post Retirement Pension Benefits 2019-20 2018-19 Expenses charged to Statement of Profit and Loss 1,038.71 1,623.47 B.3 Company’s Contribution payable under the Defined Pension Contribution Scheme is ₹1,950.05 Lakhs as at 31st March, 2020. 41.10 DISCLOSURE UNDER IND AS-24 ON “RELATED PARTY DISCLOSURES” i) Related Parties and their relationships:

Name of the Related Party Nature of Relationship M/s.Metallurgical & Engineering Consultants (Nigeria) Limited Joint Venture Company Board of Trustees, MECON Employees’ Provident Fund and Gratuity Fund Post Employment Benefit Plans Key Management Personnel Shri Atul Bhatt Chairman and Managing Director Shri Pradipta Kumar Sarangi Director (Technical) Shri Goutam Chatterjee (upto 31.10.2019) Director (Commercial) Shri Salil Kumar Director (Projects) Shri Rajendra Harbhagwan Singh Juneja Director (Finance) Shri Sanjay Kumar Verma (w.e.f. 15.01.2020) Director (Commercial) Shri Saraswati Prasad, IAS (upto 17.03.2020) Government Director Smt Rasika Chaube (upto 22.01.2020) (w.e.f 17.03.2020) Government Director Dr. Rohit Yadav, IAS, (from 22.01.2020 to 25.02.2020) Government Director Shri Sisir Kumar Appikatla (upto 12.11.2019) Independent Director Shri Deepak Krishan Independent Director Smt. Manju Chandra (w.e.f. 08.11.2019) Independent Director

139 MECON MECON Limited

ii) The details of transactions between the Company and the Related Parties other than Key Managerial Personnel: (₹ in lakhs)

Sl. M/s.Metallurgical & Engineering Consultants Name of the related party No. (Nigeria) Limited Particulars 2019-20 2018-19 1. Transaction during the period NIL NIL 2. Outstanding Balances as at the end of the period NIL NIL

Sl. Board of Trustees, MECON Employees’ Name of the related party No. Provident Fund and Gratuity Fund Particulars 2019-20 2018-19 1. Transaction during the period 2,027.67 1,877.88 2. Outstanding Balances as at the end of the period NIL NIL

iii) The details of transactions and balances pertaining to Key Managerial Personnel: (₹ in lakhs)

Sl. No. Particulars 2019-20 2018-19 1. Short-Term Employee Benefits 150.51 139.95 2. Post Employment Benefits 89.41 86.97 3. Other Long-Term Benefits 91.38 85.12 4. Termination Benefits - - 5. Share-based Payment - - 6. Sitting fees 3.90 1.50 7. Outstanding Balances as at the end of the period NIL NIL Short-Term Employee Benefits excludes medical facilities provided at Company's hospital, monetary value of which is not ascertainable. iv) Government-related Entities The Company is a wholly owned Government of India, Central Public Sector Enterprise under the administrative control of Ministry of Steel. The Company applies exemption from detailed disclosures required under Ind AS-24 with respect to related party transactions and outstanding balances, including commitments, with Government and Government related Entities. The significant transactions are with other Central Public Sector Enterprises which are under control of Government of India. The transactions with such entities are normal, based on market driven rates at arms length price. a) Name of Government-related entities and description of relationship wherein significant amount of transaction carried out :

Sl. No. Government-related Entities Relationship 1. Airports Authority of India Central Public Sector Enterprise 2. Bharat Electronics Limited Central Public Sector Enterprise 3. Bharat Petroleum Corporation Limited Central Public Sector Enterprise 4. Bharat Sanchar Nigam Limited Central Public Sector Enterprise 5. Burn Standard Company Limited Central Public Sector Enterprise 6. Central Coalfields Limited Central Public Sector Enterprise 7. GAIL (India) Limited Central Public Sector Enterprise 8. Hindustan Copper Limited Central Public Sector Enterprise

140 47th ANNUAL REPORT

Sl. No. Government-related Entities Relationship 9. Hindustan Petroleum Corporation Limited Central Public Sector Enterprise 10. Indian Oil Corporation Limited Central Public Sector Enterprise 11. KIOCL Limited Central Public Sector Enterprise 12. Mangalore Refinery & Petrochemicals Limited Central Public Sector Enterprise 13. National Aluminium Company Limited Central Public Sector Enterprise 14. NLC India Limited Central Public Sector Enterprise 15. NMDC Limited Central Public Sector Enterprise 16. NTPC Limited Central Public Sector Enterprise 17. Oil India Limited Central Public Sector Enterprise 18. Oil & Natural Gas Corporation Limited Central Public Sector Enterprise 19. Rashtriya Ispat Nigam Limited Central Public Sector Enterprise 20. Steel Authority of India Limited Central Public Sector Enterprise 21. Uranium Corporation of India Limited Central Public Sector Enterprise b) Transactions with Government-related Entities : (₹ in lakhs) Sl. Name of the Entity Nature of Transaction 2019-20 2018-19 No. Rendering of Services: 1. Bharat Electronics Limited Revenue 150.65 833.39 2. Bharat Petroleum Corporation Limited Revenue 342.34 455.38 3. GAIL (India) Limited Revenue 11,090.19 9,554.66 4. GAIL (India) Limited Estate Income 140.39 125.21 5. Hindustan Copper Limited Revenue 51.20 69.06 6. Hindustan Petroleum Corporation Revenue 532.16 716.64 Limited 7. Indian Oil Corporation Limited Revenue 209.11 195.59 8. KIOCL Limited Revenue 148.97 146.10 9. Mangalore Refinery & Petrochemicals Revenue 322.88 326.35 Limited 10. National Aluminium Company Limited Revenue 297.46 161.35

11. NMDC Limited Revenue 1,862.03 5,272.69 12. NTPC Limited Other Operating Revenue 1,694.92 - 13. Oil & Natural Gas Corporation Limited Revenue 9.11 50.47 14. Oil India Limited Revenue 248.18 232.91 15. Rashtriya Ispat Nigam Limited Revenue 2,362.63 1,765.18 16. Steel Authority of India Limited Revenue 6,550.40 8,664.69 17. Steel Authority of India Limited Sharing of Common Expenses 985.00 1,090.00 18. Uranium Corporation of India Limited Revenue 6,824.47 66.43 19. Others Revenue / Others 74.38 104.78 Receiving of Services: 1. Bharat Sanchar Nigam Limited Telecommunication Charges 45.87 54.44 2. Others Telecommunication / 213.41 224.77 Consulting / Estate Charges, etc.

141 MECON MECON Limited

(₹ in lakhs) Sl. Name of the Entity Nature of Transaction 2019-20 2018-19 No. Amount Receivable: 1. Bharat Electronics Limited Trade Receivable 202.93 270.64 2. Bharat Petroleum Corporation Limited Trade Receivable 143.84 340.87 3. Burn Standard Company Limited Trade Receivable 64.44 - 4. Central Coalfields Limited Trade Receivable 4.57 142.50 5. GAIL (India) Limited Deposits Receivable 42.72 18.97 6. GAIL (India) Limited Trade Receivable 8,429.30 7,183.21 7. Hindustan Petroleum Corporation Trade Receivable 436.72 464.58 Limited 8. Indian Oil Corporation Limited Deposits Receivable 0.42 67.48 9. Indian Oil Corporation Limited Trade Receivable 144.72 134.89 10. KIOCL Limited Trade Receivable 131.49 44.12 11. Mangalore Refinery & Petrochemicals Trade Receivable 163.39 121.75 Limited 12. National Aluminium Company Limited Trade Receivable 189.54 153.32 13. NMDC Limited Trade Receivable 3,485.00 1,956.41 14. NLC India Limited Trade Receivable 591.75 592.82 15. Oil India Limited Trade Receivable 69.49 58.90 16. Oil & Natural Gas Corporation Limited Trade Receivable 160.39 182.69 17. Rashtriya Ispat Nigam Limited Trade Receivable 2,599.02 3,854.73 18. Steel Authority of India Limited Trade Receivable 17,501.55 19,258.60 19. Uranium Corporation of India Limited Trade Receivable 3,167.78 30.34 20. Others Trade Receivable / Deposits 233.40 276.85 Receivable The above transactions with the Government-related Entities cover transactions that are significant individually. The Company has also entered into transactions, with other various Government-related Entities, which are insignificant, individually and hence not disclosed individually. 41.11 DISCLOSURE UNDER IND AS-28 ON “INVESTMENTS IN ASSOCIATES AND JOINT VENTURES” As per Ind AS-28 “Investments in Associates and Joint Ventures”, the Company’s share of ownership interest, assets, liabilities, income, expenses, contingent liabilities and capital commitments in the joint venture Company, incorporated in Nigeria, are given below: (₹ in lakhs)

% of Name of the Capital Company’s Expendi- Contingent Joint Venture Assets Liabilities Income Commit- Ownership ture Liabilities Company ments Interest

Metallurgical 50 3.41 313.36 11.76 46.14 NIL NIL & Engineering (50) (27.60) (335.47) (15.15) (55.48) (NIL) (NIL) Consultants (Nigeria) Limited Figures in bracket relates to previous year 142 47th ANNUAL REPORT

The above figures are based on the audited accounts of Metallurgical & Engineering Consultants (Nigeria) Ltd. for the year ending 31.12.2014. Reporting currency of Metallurgical & Engineering Consultants (Nigeria) Ltd. is Naira. Assets and Liabilities are reported using the closing rate of exchange as on 31.12.2014 whereas Income and Expenditure are reported using the average exchange rate in force during the year 2014 as available. 41.12 DISCLOSURE UNDER IND AS-33 ON “EARNINGS PER SHARE” Calculation of Earnings per Share:

Sl. Particulars 2019-20 2018-19 No.

a) Net Profit / (Loss) for the period attributable to Equity 6,900.43 1,374.01 Shareholders (₹ in lakhs)

b) Weighted average number of Equity Shares (Refer Note 21) 4,01,38,360 4,01,38,360

c) Earnings Per Share (Basic and Diluted) (a) / (b) (in ₹) 17.19 3.42

d) Face Value per share (in ₹) 10.00 10.00

41.13 DISCLOSURE AS PER IND AS-108 ON “OPERATING SEGMENTS” A. General Information i) The Company has identified three “Strategic Business Units” (SBUs) as “Operating Segments”. These “Operating Segments” are reported based on nature of services offered by these segments, technology / marketing strategies of the businesses, organization structure & the management reporting system. Operating Segment Composition: a) “Metals” includes Iron & Steel, Rolling Mills, Non-Ferrous, Raw Materials & Mining, Refractories, etc. b) “Energy” includes Renewable Energy, Power plant- Thermal & Hydel, Transmission & Distribution, RLA & RMU studies, Oil & Gas pipelines, Petro-chemical & Refineries, POL Depots, Retail Outlets etc. c) “Infrastructure” includes Architecture & Town Planning, Ports & Material Handling, Roads, Highways, Bridges, & Flyovers, Defence, Environmental & Hydro engineering, Management Advisory Services, Information Technology etc. ii) The SBUs are monitored by the Board of Directors, who is collectively the Company’s Chief Operating Decision Maker (CODM) and strategic decisions about performance assessment are made on the basis of Segment Operating Results. iii) Segment Revenue comprises Revenue from Engineering & Consultancy Services, Revenue from Construction Contracts (including Deposit Works) and Revenue from Procurement Services for the Jobs in India and abroad. iv) Unallocated corporate expenditure includes expenses incurred on corporate services provided to Operating Segments and other expenses not allocable on a reasonable basis to Operating Segments. v) Segment Assets and Segment Liabilities represent operating assets and liabilities respectively which are directly attributable to the segment or allocated to the segment on a reasonable basis. vi) Property, Plant & Equipment and Intangible Assets used in the Company’s business are common in nature for all by and large and therefore are not directly attributable to the segment or can be allocated to the segment on a reasonable basis. However, depreciation, amortization and impairment expenses, if any, are allocated to segment based on manhours consumed.

143 MECON MECON Limited

B. Information / Reconciliation of Reportable Segment Profit or Loss, Assets and Liabilities (₹ in lakhs)

SEGMENTS METALS ENERGY INFRASTRUCTURE TOTAL Current Previous Current Previous Current Previous Current Previous Particulars Year Year Year Year Year Year Year Year I. SEGMENT REVENUE a. Segment Revenue 22,571.65 20,785.76 20,227.64 17,582.32 13,317.97 8,649.16 56,117.26 47,017.24 from External Customers b. "Intersegment ------Revenues" c. Other Operating 5,549.02 707.38 2,395.24 151.14 689.95 44.60 8,634.21 903.12 Revenue REVENUE FROM 28,120.67 21,493.14 22,622.88 17,733.46 14,007.92 8,693.76 64,751.47 47,920.36 OPERATIONS a. Unallocated Interest ------4,834.72 5,119.69 and Other Income II. TOTAL INCOME 28,120.67 21,493.14 22,622.88 17,733.46 14,007.92 8,693.76 69,586.19 53,040.05 III. SEGMENT RESULTS (3,121.39) (1,712.71) 7,920.03 2,245.67 157.38 (2,520.65) 4,956.02 (1,987.69) [Profit/(Loss)] a. Interest Income ------2,936.63 3,770.82 b. Non Operating ------1,898.09 1,348.87 Income c. Finance Costs ------175.54 142.11 d. Non Operating Loss ------0.17 e. Accretion / ------(911.80) (1,992.28) (Decretion) to Jobs- in-Progress IV. PROFIT/(LOSS) ------8,703.40 997.44 BEFORE TAX Income Taxes ------1,802.97 (376.57) V. PROFIT/(LOSS) ------6,900.43 1,374.01 AFTER TAX VI. OTHER INFORMATION a. Segment Assets 41,310.94 45,175.12 19,869.49 17,199.15 9,115.85 9,465.97 70,296.28 71,840.24 b. Unallocated ------61,845.52 71,665.22 Corporate Assets c. Total Assets ------132,141.80 143,505.46 d. Segment Liabilities 43,515.11 49,906.07 11,291.05 8,768.36 12,560.54 11,646.95 67,366.70 70,321.38 e. Unallocated ------24,950.96 39,138.13 Corporate Liabilities f. Total Liabilities ------92,317.66 109,459.51 g. Depreciation & 381.73 391.53 225.99 247.76 114.42 127.04 722.14 766.33 Amortisation h. Non-Cash 3,400.68 748.65 1,872.02 2,515.32 266.21 456.77 5,538.91 3,720.74 Expenses other than Depreciation i Capital Employed ------30,939.67 25,696.12

144 47th ANNUAL REPORT

C. Information about geographical areas Disclosure of Information on Geographical Segment is not made considering the nature of business activities / operations being carried out by the Company mainly within the country and therefore there is no reportable geographical segment. D. Information about major customers During the year 2019-20, ₹13,586.79 lakhs (Previous Year ₹13,393.36 lakhs) of Company’s revenues, each exceeding 10% in the “Metals” Segment, are derived from 2 (two) (Previous Year 2 (two)) external customers. During the year 2019-20, ₹11,006.04 lakhs (Previous Year ₹9,554.66 lakhs) of Company’s revenues, each exceeding 10% in the “Energy” Segment, are derived from 1 (one) (Previous Year 1 (one)) external customers. During the year 2019-20, ₹104.04 (Previous Year ₹NIL) of Company’s revenues, each exceeding 10% in the “Infrastructure” Segment, are derived from 3 (three) (Previous Year NIL) external customers. 41.14 DISCLOSURE AS PER IND AS-115 “REVENUE FROM CONTRACTS WITH CUSTOMERS” a) Disaggregation of revenue into operating segments and geographical areas for the year 2019-20 is presented below:- As at 31st March, 2020 (₹ in lakhs)

Revenue as per Ind AS 115 Other Operating Total as per Profit & Loss / Segment Domestic Foreign Total Revenue Segment Reporting Metals 22,475.09 96.56 22,571.65 5,549.02 28,120.67 Energy 19,900.80 326.84 20,227.64 2,395.24 22,622.88 Infrastructure 13,317.97 - 13,317.97 689.95 14,007.92 TOTAL 55,693.86 423.40 56,117.26 8,634.21 64,751.47

As at 31st March, 2019 (₹ in lakhs)

Revenue as per Ind AS 115 Other Operating Total as per Profit & Loss / Segment Domestic Foreign Total Revenue Segment Reporting Metals 20,689.82 95.94 20,785.76 707.38 21,493.14 Energy 17,215.87 366.45 17,582.32 151.14 17,733.46 Infrastructure 8,649.16 - 8,649.16 44.60 8,693.76 TOTAL 46,554.85 462.39 47,017.24 903.12 47,920.36 b) The opening and closing balances of contract assets and contract liabilities from contracts with customers are presented below:- (₹ in lakhs)

As at As at Particulars 31st March, 2020 31st March, 2019 Contract Assets – Unbilled Revenue 635.96 - Contract Liabilities 4,055.46 5,010.52 (The contract liability primarily relates to the advances from customer. Revenue is recognized from the contract liability on proportionate basis as and when such performance obligations are satisfied) c) During the year 2019-20, an amount of ₹1,279.86 lakhs (Previous Year ₹558.13 lakhs) is recognized as revenue from opening contract liabilities. d) The aggregate value of remaining performance obligations that are completely or partially unsatisfied as

145 MECON MECON Limited

at 31st March, 2020 is ₹8,04,931.82 lakhs (Previous Year ₹4,28,472.11 lakhs). The conversion to revenue is highly dependent on meeting the delivery schedules, contractual terms and conditions with customers, availability of clients’ sites, changes / variation in scope / prices etc. In view of these, it is not practical to define the accurate percentage of conversion to revenue. However, the Company recognizes this as revenue as and when performance obligations are satisfied. e) Determining the timing of satisfaction of performance obligations:- The Company recognizes revenue using Output method based on satisfaction of the performance obligation/right to receive payment. Output method measures progress towards satisfaction of performance obligations in a manner that provides a faithful depiction of the transfer of goods or services. f) Determining the transaction price with respect to estimating variable consideration:- In cases where liquidated damages arises out of contractual terms when the work is not completed within the completion schedule or for non-achievement of any parameter, the liquidated damages amount is adjusted from the contract fee for revenue recognition. g) Reconciliation of contracted price with revenue recognized during FY 2019-20

Description Amount (₹ in lakhs) Contracted Price # 54,796.86 Add:- Net impact on account of Invoices Raised but Income not accrued due to 684.44 Variable Considerations, Down Payment Invoices etc. Add:- Additions due to unbilled revenue 635.96 Revenue recognized as per Ind AS 115 during F.Y. 2019-20 56,117.26 # Contracted Price refers to value of Invoices raised during FY 2019-20 net of credit notes issued and other adjustments. h) Revenue from foreign jobs is recognized on the basis of value of invoices raised in line with approved accounting policy and Indian Accounting Standards as applicable. 41.15 The Company has recognized revenue against deposits works / procurement services corresponding to expenses incurred relating to deposit works / procurement services. However, fees against deposit works / procurement services are invoiced separately and also revenue is recognized to that extent. 41.16 The Company has adopted Ind AS 116 “Leases” effective fromst 1 April, 2019. The Company as a lessee recognizes Lease Liability as a measure of the present value of remaining lease payments. Simultaneously, Right-of-Use equal to the Lease Liability is also recognized. The Company has taken certain offices, residential premises, etc on leases which are cancellable by giving appropriate notices as per respective agreements. During the FY 2019-20, an amount of ₹430.73 lakhs (Previous Year ₹416.35 lakhs) has been accounted for as rental charges in respect of these cancellable leases. The Company has given certain office, residential premises, etc on leases which are cancellable by giving appropriate notices as per respective agreements. During the FY 2019-20, an amount of ₹246.11 lakhs (Previous Year ₹225.55 lakhs) has been accounted for as rental income in respect of these cancellable leases. 41.17 Considering the nature of Company’s business and the type of assets held by the Company, there is no indication of loss due to impairment of assets as at 31st March, 2020 as per Ind AS- 36. 41.18 Disclosure on CSR: (₹ in lakhs)

Particulars 2019-20 2018-19 CSR Projects / Programmes, etc. 55.52 16.92 Others (including contribution to PM Cares Fund) 275.00 NIL Total Amount Spent 330.52 16.92 Amount unspent out of prescribed allocated sum during the period NIL NIL

146 47th ANNUAL REPORT

Necessary CSR & SD Fund have been created debiting P/L account upto the financial year 2013-14 and CSR & SD expenses have been debited to CSR & SD Fund in line with DPE guidelines issued from time to time as applicable. Unspent amount carried forward in CSR & SD Fund is ₹181.07 lakhs as on 31.03.2020 (₹456.07 lakhs as on 31.03.2019). From 2014-15 onwards necessary CSR amount is appropriated / transferred to CSR Activity Reserve and CSR amount spent is adjusted / transferred from CSR Activity Reserve. During the year 2019-20 ₹19.92 lakhs (Previous Year ₹87.96 lakhs) is transferred from Surplus to CSR Activity Reserve. Unspent CSR amount carried forward under the head CSR Activity Reserve is ₹35.44 lakhs as on 31.03.2020 (₹71.04 lakhs as on 31.03.2019). 41.19 Disclosure on R&D: (₹ in lakhs)

Particulars 2019-20 2018-19

Opening Balance of Fund 162.58 135.46

Add : Allocation / Provision made during the period 6.87 29.00

Less : Adjustment / Utilization made during the period NIL 1.88

Closing Balance of Fund (Refer Note 16) 169.45 162.58

Necessary R&D Fund have been created debiting Statement of Profit & Loss and R&D expenses have been debited to R&D Fund in line with DPE guidelines issued from time to time as applicable. 41.20 Information in respect of micro and small enterprises as required by Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) read with notification of Ministry of Corporate Affairs dated th11 October, 2018 to the extent information available with the Company are as under: (₹ in lakhs)

Sl. As at As at Particulars No. 31.03.2020 31.03.2019 (a) Amount remaining unpaid to any supplier: - Principal Amount, remaining unpaid 3,670.60 3,828.35 - Interest due on Principal Amount, remaining unpaid - - (b) Amount of interest paid in terms of Section 16 of the MSMED Act along - - with the amount paid to the suppliers beyond appointed day during the year (c) Amount of interest due and payable for the period of delay in making - - payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act. (d) Amount of interest accrued and remaining unpaid at the end of the year - - (e) Amount of further interest remaining due and payable even in the - - succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under Section 23 of the MSMED Act. 41.21 Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss, unused tax credits (MAT Credit entitlement) or deductible temporary difference will be utilized against future taxable income. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

147 MECON MECON Limited

41.22 Wage revision is due for non-executive employees w.e.f. 01.01.2017. During the year 2019-20, provision has been made for ₹24.65 lakhs (cumulative provision ₹121.77 lakhs) (Previous Year ₹74.91 lakhs (cumulative provision ₹97.12 lakhs)) towards wage revision in respect of non-executive employees, based on estimate and information as available, etc. 41.23 Pay revision is due for executive employees w.e.f. 01.01.2017. However, considering the DPE OM dated 03.08.2017 and the financial status of the company, provision for pay revision in respect of executive employees is not made during the year. However, the matter will be reviewed in 2020-21 based on company’s performance. etc. 41.24 Advance of ₹756.86 lakhs was given to M/s Mysore Construction Company (W.O. No. 11.51/Q6AA/ Civil/7720 dated 05.12.2005) against valid Bank Guarantees. The Company lodged claims within due date against Bank Guarantees submitted by the party. However, M/s Mysore Construction Company sought injunction against the encashment of Bank Guarantee from Hon’ble Principal District Court at Cuddalore. Hon’ble Principal District Court, Cuddalore directed M/s Mysore Construction Company to keep the Bank Guarantees in existence till disposal of petition. 41.25 During the year, the Company has recognized an amount of ₹122.67 lakhs as Other Operating Income towards liquidated damages recovered / withheld from vendors, where delay is solely attributable to the vendors as per the terms of the contract. 41.26 During the year, the Company has reviewed the provisions / liabilities towards expenses for execution of jobs relating to the business based on latest available information or new developments. Accordingly, based on decision of the Management, the Company has derecognized an amount of ₹6,236.26 lakhs towards such provisions / liabilities and recognized as Other Operating Income. 41.27 Financial Instruments: Financial assets / liabilities are recognized initially at fair value and transaction cost that is attributable to the acquisition of the financial asset is also adjusted. Subsequent to initial recognition, all financial assets are measured either at amortised cost or at fair value. Financial liabilities are subsequently measured at amortized cost using the effective interest rate (EIR) method. a) Risk Management The Company is exposed to various risks in relation to financial instruments. The main types of risks are market risk, credit risk and liquidity risk. The Company’s risk management is coordinated at its headquarters by close interaction with other offices, in close cooperation with the board of directors, and focuses on actively securing the Company’s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the trading of financial assets. The most significant financial risk to which the Company is exposed is credit risk. Credit Risk Credit risk is the risk that a counter party fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments. The Company’s maximum exposure to credit risk is limited to the carrying amount of following types financial assets. - Cash and cash equivalents - Trade Receivables - Other financial assets The Company continuously monitors defaults of clients and customers and other counterparties, identified either individually or by the Company, and incorporated this information into its credit risk controls. i) Credit risk management Cash and cash equivalent Credit risk related to cash and cash equivalents is managed by only accepting highly rated bank deposits and accounts in different banks across the country.

148 47th ANNUAL REPORT

Trade Receivables The Company closely monitors the credit-worthiness on the Trade Receivables. Other financial assets Other financial assets for example loans and advance to employees and other Credit risk related to these other financial assets is managed by monitoring the recoverability of such amount continuously. ii) Expected credit losses Company provides expected credit losses based on the following: Trade Receivables The Company recognizes lifetime expected credit losses on Trade Receivables using a simplified approach and uses historical information to arrive at loss percentage relevant to each category of trade receivables: (₹ in Lakhs)

Ageing (As at 31st March, 0-12 12-24 24-36 More than Total 2020) months months months 36 months

Gross carrying amount 30,610.54 7,153.73 4,691.33 14,189.88 56,645.48

Expected credit loss provision 734.65 171.69 112.59 9,318.56 10,337.49

Carrying amount of trade 29,875.89 6,982.04 4,578.74 4,871.32 46,307.99 receivables (Net of impairment)

Ageing (As at 31st March, 0-12 12-24 24-36 More than Total 2019) months months months 36 months

Gross carrying amount 30,168.14 6,787.19 3,419.85 11,903.63 52,278.81

Expected credit loss provision 681.80 153.39 77.29 6,780.22 7,692.70

Carrying amount of trade 29,486.34 6,633.80 3,342.56 5,123.41 44,586.11 receivables (Net of impairment)

Reconciliation of Expected Credit Loss Provision (₹ in Lakhs)

Particulars Amount

As at 31st March, 2019 7,692.70

Changes in provision 2,644.79

As at 31st March, 2020 10,337.49

Other financial assets Company provides for expected credit losses on financial assets other than trade receivables by assessing individual financial instruments for expectation of any credit losses. Since this category includes financial assets of varied natures and purpose, there is no trend that the Company can draw to apply consistently to entire population. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

149 MECON MECON Limited

b) Financial Instruments by Category (₹ in Lakhs)

FVTPL FVTOCI AMORTISED COST

PARTICULARS As at As at As at As at As at As at 31.03.2020 31.03.2019 31.03.2020 31.03.2019 31.03.2020 31.03.2019

Financial Assets

Investments - - - - 11.92 11.92

Trade Receivables - - - - 46,307.99 44,586.11

Loans - - - - 1,087.11 986.90

Cash & Cash Equivalents - - - - 2,194.26 730.17

Other Bank Balances - - - - 37,100.79 53,412.12

Other Financial Assets - - - - 8,916.88 8,153.36

TOTAL - - - - 95,618.95 1,07,880.58

Financial Liabilities - - - -

Borrowings ------

Trade Payables - - - - 16,795.44 18,655.13

Other Financial - - - - 33,195.56 28,393.69 Liabilities

TOTAL - - - - 49,991.00 47,048.82

41.28 Fair Value Measurements a) Fair Value Hierarchy The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 : Inputs are quoted prices (unadjusted) in active markets for financial instruments. Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 : Unobservable inputs for the asset or liability b) Financial Instruments measured at fair value – recurring fair value measurements (₹ in Lakhs)

Particulars Level 1 Level 2 Level 3 Total

As at As at As at As at As at As at As at As at Financial Assets 31.03.20 31.03.19 31.03.20 31.03.19 31.03.20 31.03.19 31.03.20 31.03.19

Investment NIL NIL - - - - NIL NIL (Current) - Investment in Mutual Funds

150 47th ANNUAL REPORT c) Valuation process and technique used to determine fair value: i) The carrying amount of financial assets and liabilities are considered to be representative of their fair value. ii) Investments in associate and joint venture are measured at cost. iii) Investment in mutual funds are measured based on Net Asset Value. 41.29 Impact of COVID-19 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of current and non-current assets. The Company has reviewed the impact of COVID-19 and expects the carrying amount of these assets will be recovered. Based on the assessment, the Company expects no significant impact on the continuity of the operations of the business on long-term basis. Prolonged lock-down due to COVID-19 pandemic has affected deployment of resources & performance obligations on contracts with customers, resulting in impact on future revenue recognition. For the leases that the Company has entered with the lessors at different geographical locations in order to successfully execute the projects, the Company does not foresee changes in terms of those leases expected due to the COVID-19. 41.30 Pursuant to introduction of Section 115BAA under the Taxation Laws (Amendment) Act, 2019, the Company has an irreversible option of shifting to a lower tax rate along with consequent reduction in certain tax incentives including lapse of the accumulated MAT credit entitlement. The Company has not yet exercised this option and continues to recognize the taxes on income for the year ended 31st March, 2020 as per earlier provisions. 41.31 Previous year’s / year-to-date figures have been regrouped / recast wherever necessary in the Balance Sheet, Statement of Profit & Loss, Cash Flow Statement and Notes, etc.

151 MECON MECON Limited FORM AOC-I

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Name of Joint Venture M/s Metallurgical & Engineering Consultants (Nigeria) Limited

1. Latest audited Balance Sheet Date For the year ending on 31.12.2014

2. Date on which the Joint Venture was associated 28.10.1982 or acquired

3. Shares of Joint Ventures held by the company on the year end

No. 5000

Amount of Investment in Joint Venture ₹ 7.60 lakhs

Extent of Holding % 50%

4. Description of how there is significantMajority of the members of the Board of M/s Metallurgical influence & Engineering Consultants (Nigeria) Limited are also Directors / Senior Managerial Personnel of MECON Limited.

5. Reason why the associate/joint venture is not Consolidation is not applicable for Joint Venture consolidated company.

6. Networth attributable to Shareholding as per (-) ₹309.94 lakhs (50%) latest audited Balance Sheet

7. Profit / Loss for the year (-) ₹34.38 lakhs

i. Considered in Consolidation Not Applicable

ii. Not Considered in Consolidation Not Applicable

In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS

Sd/- Sd/- Sd/- Sd/- Sd/- (BIPUL RASTOGI) (RAVI BAMBHA) (S. SAMANTA) (R. H. JUNEJA) (ATUL BHATT) PARTNER COMPANY SECRETARY GENERAL MANAGER DIRECTOR (FINANCE) CHAIRMAN and Memb.No.072318 I/C (FINANCE) MANAGING DIRECTOR Firm Regn. No.000980C

Place : Ranchi Date : 01.10.2020 UDIN : 20072318AAAAAY6428

152 GLIMPSES OF CSR ACTIVITIES

MECON LIMITED MECON LIMITED (A Govt. of India Enterprise) (A Govt. of India Enterprise)

Head O ce Vivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India CIN No. - U74140JH1973GOI001199 www.meconlimited.co.in

For Business Enquiry Chief General Manager (Marketing) Phone : +91-651-2483101, Fax : +91-651-2482214/ 2482189 E-mail: [email protected]

Major O ces

217_1120_ Anapurna Press & Process 0651-2331800, [email protected]