Texmaco Rail & Englneering
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Texmaco Rail & Englneering Ltd' Belgharla Worka CIN No': L2926lWB1998PLCO87 4O4 \Z^1. GSTU{ No. L9AAE,CT2592ELZA TEXMACO 13th August, 2019 SecretarY C.orPoratc Relation The DeParlmenl Thc The Listing The Calcutta Stock o.f lndiu Lld Dep0rlmcnl Narional Stock Exchonge Ltd Limired Exchange Plaztt BSE Exchange 7, Lyons Range P. J. TorYers, De al Street Barulra - Kurla ComPlex 400001 Kotkata - 700001 40005 I Fort, Mumbai - Banrlra (E), Mumbai - - 30285 Code - 533326 Scrip Code Symbol-TEXRAIL Scrip Dear Sir(s), ol the Co1n11V *ill the Annual General Meeting (AGM) We would like to inform you that ;"#il;;;a"r, r'l s'p*'i1', iole at 2:00 PM at K K' Birla Kala Kendra' 700 056' Texmaco Estate, Belgharia, Kolkata - herewith for your Annr'ral Report has been enclosed A copy of the Notice of the AGM and rc lerence. 'fhanking You, Yours FaithfullY, 'l Limited F'or exmaco Rail & Engineering ,#^* Compliance Encl: a/a Regd.offlce&works:BELG}|AR|A,KoL|GTAToo0S6.lNDlA.Ph'250915oo.Fax:91(33)2541244813517 .-'"ii i't"it*rrOt"xm6so'16 o Website : www texma@'in TEXMACO RAIL & ENGINEERING LTD. Annual Report 2018-19 BUILDING ON A LEGACY OF 8O YEARS ENVISIONING SUCCESS Contents Corporate Overview Corporate Information 01 Business Units 02 From the desk of The Chairman 06 Accolades & Acclamation 09 Touax Texmaco Railcar Leasing Pvt. Ltd. 10 Wabtec Texmaco Rail Pvt. Ltd. 11 Robust Financial Performance and Financial highlights of the last ten years 12 Products 14 Rail EPC 18 Corporate Social Responsibility 20 Work-Life Balance 21 Statutory Reports Report of the Board of Directors 22 Report on Corporate Governance 53 Business Responsibility Report 66 Financial Statements Auditor’s Report 71 Balance Sheet 80 Statement of Profit and Loss 81 Statement of Cash Flow 82 Statement of Changes in Equity 83 Notes on Financial Statements 84 To view the report in pdf please visit: Consolidated Financial Statements 129 www.texmaco.in Notes on Consolidated Financial Statements 142 Corporate Overview Statutory Reports Financial Statements Corporate Information Directors Registered & Corporate Office Subsidiaries Mr S. K. Poddar, Executive Chairman Belgharia, Kolkata 700 056 • Texmaco Defence Systems Private Mr Sandeep Fuller, Managing Director Phone: (033) 2569 1500 Limited Mr A. C. Chakrabortti Fax: (033) 2541 2448 • Texmaco Transtrak Private Limited Mr D. R. Kaarthikeyan Email: [email protected] • Texrail SA (Pty) Limited Mr Sunil Mitra Website: www.texmaco.in • Belur Engineering Private Limited Mr Sabyasachi Hajara# • Texmaco Rail Systems Private Limited ## Mr V. K. Sharma Kolkata Office Ms Mridula Jhunjhunwala Joint Ventures Mr Akshay Poddar Birla Building, 9/1, R.N. Mukherjee Road Mr D. H. Kela, ED & CEO (SF) Kolkata 700 001 • Touax Texmaco Railcar Leasing Mr G. C. Agrwal, ED & CEO (HED)* Phone: (033) 3057 3700 Private Limited Mr A. K. Vijay, ED & CFO Fax: (033) 2242 5833 • Wabtec Texmaco Rail Private Limited # Ceased w.e.f. 28th September 2018 ## Ceased w.e.f. 29th June 2019 Regional Offices Registrar & Share Transfer Agent • New Delhi • Mumbai • Jaipur Company Secretary Messrs. Karvy Fintech Private Limited Karvy Selenium Tower B , Plot No. Mr Ravi Varma* Works (Kolkata) 31& 32, Gachibowli Financial District, * Ceased w.e.f. 22nd June 2019 Heavy Engineering Nanakramguda, Hyderabad: 500032 Phone: 040-6716 2222 • Agarpara • Sodepur • Panihati • Belgharia E-mail: [email protected] Auditors Steel Foundry Messrs L. B. Jha & Co., Kolkata CIN • Belgharia L29261WB1998PLC087404 Bankers State Bank of India HDFC Bank YES Bank Axis Bank ICICI Bank IDFC Bank 01 Texmaco Rail & Engineering Ltd. | Annual Report 2018-19 Business Units Rolling Stock High Payload Stainless/ High Tensile Steel Freight Wagons Commodity Specific Wagons for Bulk Transport Special Purpose New Design Freight Wagons Bottom Discharge Coal Hopper Wagons Container Flat wagons Tank Wagons (SS & MS) Defence Equipment Wagons Auto Car Wagons High capacity Parcel vans Brake Vans (type BVCMI ) Rail EPC Design, Supply, Installation & Commissioning Main Line Railway Tracks Metro Railway Tracks Railway Signaling Railway Telecom Buildings, Platforms & Foot Over Bridges Bridges & Culvert for Railways Automatic Fare Collection Railway Overhead & other Electrification Railways Electrification Other Power Supply Installation 02 Corporate Overview Statutory Reports Financial Statements Traction & Coaching Loco-shells Loco Bogies Coach-bogies & Underframes EMU Coaches Loco Underframe Loco Components Passenger Coach Bogies Steel Foundry Domestic High Speed Bogies H.T. Couplers Draft Gears Draw Bars Tight Lock Couplers CMS Crossings Industrial Castings for Earth Moving Equipment Hydro Power Projects Exports High Axle Load Bogie Castings Shroud Castings Center Plate AAR Yokes & Follower 03 Texmaco Rail & Engineering Ltd. | Annual Report 2018-19 Business Units Process Equipment & Others Horton Sphere Cryogenic Vessels Clay Filter Gas Cooler Cold Box Heat Exchanger Bridges and other Steel Structures Industrial Structure Fabrication and erection of Steel Bridges in Railways and Roadways. Steel/Concrete Flyovers Other types of bridges – Concrete and Steel. Fabrication and erection of Bailey Bridges Ship Hull Blocks 04 Corporate Overview Statutory Reports Financial Statements Hydro-mechanical Equipment Gates in a wide range : Radial / Vertical/Mitre/Torispherical Flap type/ Hinged type Penstocks / Pressure Shaft Liners Bifurcation, Trifurcation, Transition, Expansion Joints, Manifolds, Reducers, Dismantling Joints, Fixed & Rocker, Supports and Specials Fixed & Rocker Supports and Specials Stoplogs / Bulkhead Gates Hydraulic, Rope Drum, Hoists, Screw Hoists, Travelling Hoists etc. Knife Edge Gate Valve (Screw / hydraulic / Electric Acuator operated) / Filling-in-valves Trashracks / Screens Trash Rack Cleaning Machines Goliath / EOT Cranes / Lifting Beams Refurbishment / replacement & overhauling of HM equipment of old hydro projects / barrages Automation of dam & barrage equipments operation through SCADA & ARMAC system 05 Texmaco Rail & Engineering Ltd. | Annual Report 2018-19 From the desk of The Chairman 06 Corporate Overview Statutory Reports Financial Statements Modi Juggernaut job losses. (One million Indians enter the workforce every month). Automobile Prime Minister, Mr. Narendra Modi, has sector is currently going through the ascended to power in the second term worst slowdown in 2 decades. There are with full majority, independent of allies no signs of abating with most indicators of the BJP. The triumph of BJP holds of domestic demand flashing red. The out a great opportunity for accelerated core inflation is at its lowest level in nearly development and reform. The 2 years, which again reflects weakness opportunity comes with some serious in consumption demand. challenges too. The government has to come to grips with critical economic Investment’s the key issues to fulfill India’s potential. The nation looks to Modi to turn India into Fresh investments in the country are a global power. at a 15-year low. Global economic uncertainties are rising. Therefore, The Challenge it comes as no surprise that multi- lateral institutions, such as, IMF, ADB, The pre-eminent challenge for as also the RBI have pared down Modi Government is to resurrect India’s growth forecast in their recent India’s economy with messianic pronouncements. In this background, zeal going for bolder reforms and the economists have to study if there actions. The new Finance Minister, is a bigger problem of a structural Ms. Nirmala Sitharaman (the first woman slowdown in the Indian economy. The to head the Finance Ministry since Indira Gandhi, 50 years ago) embodies a key Centre and the RBI have to craft their figure in the government to fulfill the fiscal and monetary policies conducive expectations of aspirational Indians. to uplifting the investment and raising Apart from wagon She has a tough task on her hands as the the growth rate to 9% every year for prospects for a quick economic recovery 5 years to achieving India’s dream of building, your depend partly on the Banks which are becoming a $ 5 trillion economy. company is playing struggling with bad loans clogging their balance sheets. The major question is A Notable Reform a significant role – will the new government usher pro- In the Finance sector, a notable feature in infrastructure market policies, encouraging investment is that Indians are switching to digital by liberalizing labour and land laws, payments in droves. The digital payments projects of railways relying on innovative strategies and take-off really feels like a revolution. through its rail EPC state craft ! In this connection, it bears mention that whereas ‘demonetization’ in The government has to contend with divisions - Kalindee November ‘16 caused economic ripples, Rail Nirman and realignment of exchange rate, having it gave digital payments a galvanic regard to the raging global trade war boost. The value of digital transactions Bright Power. and rising protectionism. Economic has risen more than 50 - fold in the past growth is being hotly debated as 2 years. Besides, the system increases an area of major concern. In the financial inclusion and cuts tax evasion 4th quarter of fiscal 2019, it was at its from unreported cash deals. The global lowest in 5 years. This is also throwing technical giants are also evincing keen in its wake the major problem of interest in the new payments service. 07 Texmaco Rail & Engineering Ltd. | Annual Report 2018-19 Water Management electrify its entire broad-gauge network per year. It has built strong credentials by 2021 – 22. The electrification drive will overseas, and 50% of its production On the infrastructure front, a major be covering 28000 km in the next three is catering to export to developed emerging problem is serious water financial years, entailing an expenditure markets. Considering the projected crisis. It is easy to blame the country’s of 6 -7 billion USD, to be financed by wagon demand and the company’s water woes on nature, the monsoon. It’s ADB loan. Besides, in FY ’20 budgetary captive requirement, it was necessary no less a legacy of poor management support from the government has risen to add to the capacity of steel casting. and under-investment. The Union Govt.