SOUTH EASTERN COALFIELDS LIMITED (A Mini Ratna PSU)

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SOUTH EASTERN COALFIELDS LIMITED (A Mini Ratna PSU) SOUTH EASTERN COALFIELDS LIMITED (A Mini Ratna PSU) 34th ANNUAL REPORT 2019-20 Empowering India Enabling Life CONTENTS CORPORATE OVERVIEW Vision & Mission 2 SECL at a Glance 3 Corporate Information 4 Board of Directors 5 The Year at a Glance 6 Performance Trend 7 Chairman’s Letter 10 Awards and Accolades 14 Operational Statistics 15 Directors’ Profile 21 Our Management Team 32 Our Presence 36 STATUATORY REPORTS Board’s Report 37 Report on Performance of Subsidiaries 99 Annual Report on CSR 105 Secretarial Audit Report 114 Information u/s 134(3) (m) of the Companies Act, 2013 118 Report on Corporate Governance 121 Certificate on Corporate Governance 139 Management Discussion and Analysis Report 140 FINANCIAL STATEMENTS Comments of C&AG of India 155 Auditors’ Report 156 Balance Sheet 172 Statement of Profit & Loss 174 Statement of Changes in Equity 176 Cash Flow Statement 178 Notes to Financial Statements 180 Comments of C&AG of India (on Consolidated Financial Statements) 256 Auditors’ Report (on Consolidated Financial Statements) 257 Balance Sheet (Consolidated) 268 Statement of Profit & Loss (Consolidated) 270 Statement of Changes in Equity (Consolidated) 272 Cash Flow Statement (Consolidated) 274 Notes to Financial Statements (Consolidated) 276 Statement containing salient features of Financials of Subsidiaries (AOC-1) 354 Annexure-I & IX under Regulation 33 of SEBI (LODR) Regulations 355 CEO & CFO Certification 359 Notice of 34th Annual General Meeting 360 VISION To be one of the leading energy suppliers in the MISSION country, by adopting the To produce and market the best practices and leading planned quantity of coal technology from mine to and coal products efficiently market. and economically in an eco-friendly manner with due regard to safety, conservation and quality. SECL at a Glance South Eastern Coalfields Limited (SECL) is single largest Coal producing Company of India, with 150.55 Million Tonnes of coal production in 2019-20. Coal reserves of SECL are spread over the States of Chhattisgarh & Madhya Pradesh and the Company is operating 70 mines (43 mines in CG & 27 mines in MP). ` 27,086.06 Crore Gross Sales ` 2,521.47 Crore Profit before Tax 11.65 Te Output-per-Man-shift (OMS) ` 2,421.23 Dividend Per Share for FY 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter CORPORATE INFORMATION Corporate Identification Number (CIN): U10102CT1985GOI003161 REGISTERED OFFICE SECRETARIAL AUDITOR South Eastern Coalfields Limited M/s. D Hanumanta Raju, Hyderabad Seepat Road, Bilaspur (Chhattisgarh) - 495 006 SUBSIDIARIES Tel: 07752 246379-399 Chhattisgarh East Railway Ltd., Raipur Fax: 07752 246451 Chhattisgarh East-West Railway Ltd., Raipur Website: www.secl-cil.in LOCATION OF MINES: DIRECTORS &KEY MANAGERIAL PERSONNEL State: Chhattisgarh Whole-Time Directors Districts: Korba Shri A. P. Panda, CMD & CEO (w.e.f. 28.12.2018) Raigarh Dr. R. S. Jha, D(P) (w.e.f. 30.09.2014) Surguja CORPORATE OVERVIEW Shri R. K. Nigam, D(T) O (w.e.f. 01.05.2019) Koriya Shri M. K. Prasad, D(T) P&P (w.e.f. 18.06.2019) Surajpur Shri S.M. Choudhary, D(F)& CFO (w.e.f. 12.10.2019) Balrampur Shri N.K. Agarwala, D(F)& CFO (w.e.f. 16.08.2019 up to 11.10.2019) State: Madhya Pradesh Shri Sanjiv Soni, D(F) & CFO (w.e.f. 04.04.2019 up to 10.07.2019) Districts: Shahdol Anuppur Govt. Nominee Directors Umaria Shri R.K. Sinha, IAS, JS (MoC) (w.e.f. 29.11.2019 up to 09.07.2020) Shri Ashish Upadhyay, IAS, JS (MoC) (w.e.f. 11.01.2019 up to 29.11.2019) BANKERS Shri Sanjiv Soni, D(F), CIL (w.e.f. 29.10.2019) State Bank of India Shri S.N. Prasad, D(M), CIL (w.e.f. 10.12.2018 up to 29.10.2019) ICICI Bank Independent Directors HDFC Bank CA Shri S.K. Deshpande (w.e.f. 25.07.2019) Union Bank of India Dr. Sunil Kumar, (Retd. IAS) (w.e.f. 17.11.2018 up to 16.11.2019) UCO Bank Dr. B. S. Sahay, Director (IIM Jammu) (w.e.f. 17.11.2018 up to 16.11.2019) Punjab National Bank STATUTORY REPORTS CA Shri Vinod Jain, (w.e.f. 19.02.2019up to 16.11.2019) Bank of Baroda Axis Bank Permanent Invitee Canara Bank Shri Chhatrasal Singh (PCOM, SECR) (w.e.f. 02.03.2020) Oriental Bank of Commerce Shri P. K. Jena (PCOM, SECR) (w.e.f. 25.02.2019 up to 01.03.2020) Corporation Bank Company Secretary Syndicate Bank Shri S. M. Yunus DEPOSITORY STATUTORY AUDITORS M/s. National Securities Depository Limited M/s. O. P. Totla & Co., Raipur REGISTRAR & SHARE TRANSFER AGENT (RTA) BRANCH AUDITORS M/s. Venture Capital and Corporate Investments Pvt. Ltd., M/s. Maheshwari & Associates, Kolkata Hyderabad. M/s. KGRS & Co., Kolkata M/s. Bhutoria Ganesan & Co., Bhopal ISIN COST AUDITORS INE02GF01011 FINANCIAL STATEMENTS M/s. Narasimha Murthy & Co., Hyderabad M/s. N.D. Birla & Co., Ahmedabad M/s. R. S. Tiwari & Co., Bilaspur, Chhattisgarh M/s. S D K & Associates, Kolkata 34th Annual Report 4 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited Board of Directors BOARD OF DIRECTORS (DURING 2019-20) BOARD OF DIRECTORS (As on 18.08.2020) Chairman-cum-Managing Director/CEO Chairman-cum-Managing Director/CEO Shri A. P. Panda, Whole-Time Directors Shri A. P. Panda (w.e.f. 28.12.2018) Whole-Time Directors Whole-Time Directors Dr. R. S. Jha, Director (Personnel) (w.e.f. 29.09.2014) Dr. R. S. Jha, Director (Personnel) Shri R.K. Nigam, Director (Tech) Oprn. (w.e.f. 01.05.2019) Shri R.K. Nigam, Director (Tech) Oprn. Director (Tech) P&P (w.e.f. 28.12.2018 Shri M. K. Prasad, Director (Tech) P&P Up to 30.04.2019, Additional Charge up to 18.06.2019) Shri S. M. Choudhary, Director (Finance)/ CFO Shri Kuldip Prasad, Director (Tech) Oprn. (up to 30.04.2019) Shri M. K. Prasad, Director (Tech) P&P (w.e.f. 18.06.2019) CORPORATE OVERVIEW Shri S.M. Choudhary, Director (Finance)/CFO, (w.e.f. 12.10.2019) Shri N. K. Agarwala, Director (Finance)/CFO (w.e.f. 16.08.2019 upto 11.10.2019) Shri Sanjiv Soni, Director (Finance)/CFO, (w.e.f. 04.04.2019 upto 10.07.2019) Govt. Nominee Directors Govt. Nominee Directors Shri R.K. Sinha Shri Sanjiv Soni, Director (Finance), Coal India Limited (w.e.f. 29.11.2019 upto 09.07.2020) IAS, Joint Secretary, Ministry of Coal, Govt. of India, New Delhi Shri Ashish Upadhyay (w.e.f. 11.01.2019 upto 29.11.2019) IAS, Joint Secretary, Ministry of Coal, Govt. of India, New Delhi Shri Sanjiv Soni (w.e.f. 29.10.2019) STATUTORY REPORTS Director (Finance), Coal India Limited Shri S. N. Prasad (w.e.f. 10.12.2018 upto 29.10.2019) Director (Marketing), Coal India Limited Independent Directors Independent Directors CA Shri S.K. Deshpande (w.e.f. 25.07.2019), Chartered Accountant CA Shri S.K. Deshpande Dr. Sunil Kumar (w.e.f. 17.11.2018 upto 16.11.2019) Chartered Accountant Retd. IAS, Ex-Vice Chairman, CG State Planning Commission Dr. B. S. Sahay (w.e.f. 17.11.2018 upto 16.11.2019) Director, IIM Jammu CA Shri Vinod Jain (w.e.f. 19.02.2019 upto 16.11.2019), Chartered Accountant Permanent Invitee Permanent Invitee Shri Chhatrasal Singh (w.e.f. 02.03.2020) Shri Chhatrasal Singh PCOM, South East Central Railway (SECR) Principal Chief Operations Manager Bilaspur (CG) South East Central Railway (SECR) FINANCIAL STATEMENTS Bilaspur (CG) Shri P.K. Jena (w.e.f. 25.02.2019 up to 01.03.2020) PCOM, SECR, Bilaspur (CG) Company Secretary Shri S. M. Yunus 34th Annual Report 5 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter The year at a Glance Particulars Unit 2019-20 2018-19 Production of Raw Coal: i. Coal Production from Opencast Mines Million Tonnes 136.46 142.58 ii. Coal Production from Underground Mines Million Tonnes 14.09 14.77 Total Coal Production Million Tonnes 150.55 157.35 Sale of Coal ` in Crore 27086.06 31368.72 Profit before Tax (PBT) ` in Crore 2521.47 5570.67 Profit after Tax (PAT) ` in Crore 1734.92 3611.55 CORPORATE OVERVIEW Dividend ` in Crore 1617.52 2326.61 Dividend Tax ` in Crore 332.49 478.24 Retained Profit ` in Crore 330.21 984.48 Net Fixed Asset ` in Crore 6009.14 6043.95 Net Worth ` in Crore 3064.35 3631.87 Long-term Loans ` in Crore 0.00 0.00 Capital Employed ` in Crore 12346.77 11254.35 Value Added ` in Crore 14588.38 17466.62 Average Manpower employed during the year Number 53265 56624 STATUTORY REPORTS Value Added per Employee ` in Crore 0.27 0.31 Debt to Net Worth Ratio 0.00 0.00 Return on Capital Employed % 20.42 49.50 Face value per Share ` 1000.00 1000.00 Dividend per Share ` 2421.23 3331.61 Book Value per Share ` 4586.97 5436.47 Earnings per Share ` 2596.97 5086.13 Note: Previous period’s figures have been regrouped and rearranged wherever considered necessary for comparison. FINANCIAL STATEMENTS 34th Annual Report 6 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited PERFORMANCE TRENDS CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 2017-18 2018-19 2019-20 34th Annual Report 7 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter PERFORMANCE TRENDS CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 34th Annual Report 8 2019-20 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited PERFORMANCE TRENDS CORPORATE OVERVIEW * During the year 2017-18, the company has issued 41,82,850 Bonus Equity Shares to existing Equity Share Holders in the ratio of 7:5.
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