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mRifÙk ,lih,elhvkbZ,y rduhdh :i ls ,d ubZ laLFkk gS ftldk izfrHkwfr eqnz.k rFkk flDdksa dh <+ykbZ esa 'krkfCn;ksa iqjkuk vuqHko gSA lHkh ukS mRiknu bdkb;ksa dk izca/ku] fu;a=.k] j[k&j[kko rFkk izpkyu djsalh ,oa Dokbu fMohtu] vkfFkZd dk;Z foHkkx] foRr ea=ky;] Hkkjr ljdkj ds v/khu Fkk ftls ,lih,elhvkbZ,y dks 10 Qjojh] 2006 dks LFkkukarfjr fd;k x;kA foÙk ea=ky; cksMZ funs’kdksa ds ek/;e ls ,lih,elhvkbZ,y ij iz’kklfud fu;a=.k j[krk gSA ukS mRiknu bdkb;ksa esa pkj Hkkjr ljdkj Vdlkysa] nks pykFkZ i= eqnz.kky;] nks izfrHkwfr eqnz.kky; rFkk ,d izfrHkwfr dkxt dkj[kkuk gSA oha lnh dksydkrk Vdlky esa flDdksa dh <ykbZ izkjaHk 18 th Century Hkkjr ljdkj Vdlky] eqEcbZ Hkkjr ljdkj Vdlky] gSnjkckn Hkkjr izfrHkwfr eqnz.kky;] ukfld esa mRiknu izkjaHk esa flDdksa dh <+ykbZ izkjaHk dh LFkkiuk izfrHkwfr dkxt dkj[kkuk] gks’kaxkckn Hkkjr izfrHkwfr eqnz.kky;] ukfld dksydkrk dh orZeku Vdlky esa mPp xq.kork ds izfrHkwfr dkxt esa djsalh eqnz.k izkjaHk dk vk/kqfudhdj.k dk mRiknu izkjaHk cSad uksV eqnz.kky;] nsokl esa izfrHkwfr eqnz.kky;] gSnjkckn esa Hkkjr ljdkj Vdlky] uks,Mk esa djsalh eqnz.k izkjaHk mRiknu izkjaHk flDdksa dh <+ykbZ izkjaHk Manufacturer of Instruments of Faith SPMCIL 2 Annual Report 2017-18 Manufacturer of Instruments of Faith SPMCIL CONTENTS Vision and Mission 4 Leadership at SPMCIL 5 Letter to Shareholders 7 Performance at a Glance 11 About SPMCIL 15 Directors’ Profile 23 Directors' Report 28 Financial Statement 94-221 (a) Standalone 94-159 (i) Independent Auditor's Report 95 (ii) Balance Sheet 124 (iii) Statement of Profit and Loss 125 (iv) Cash Flow Statement 126 (v) Notes to Financial Statement 128 (b) Consolidated 160-221 (i) Independent Auditor's Report 161 (ii) Balance Sheet 176 (iii) Statement of Profit and Loss 177 (iv) Cash Flow Statement 178 (v) Notes to Financial Statement 180 Glossary 222 Notice of AGM 223 Annual Report 2017-18 3 Manufacturer of Instruments of Faith SPMCIL VISION To be leader in manufacturing of currency, coins and security products through process excellence and innovation. MISSION Achieve market leadership by: y Developing state-of-the-art currency, coins and diversified security products in a transparent, cost-effective and efficient manner by leveraging core competency and building design capabilities; y Constantly focusing on benchmarking, process automation, applied R&D indigenisation and the triple bottom line of people, planet and profit; and y Ensuring employees, customers and stakeholders delight. 4 Annual Report 2017-18 Manufacturer of Instruments of Faith SPMCIL LEADERSHIP AT SPMCIL Board of Directors (As on 31.07.2018) FUNCTIONAL DIRECTORS Ms. TRIPTI P. GHOSH Chairman and Managing Director SHRI AJAI KUMAR SRIVASTAV SHRI S.K. SINHA SHRI AJAY AGARWAL Director (Technical) Director (HR) Director (Finance) GOVERNMENT NOMINEE DIRECTORS Ms. MEERA SWARUP SHRI PRASHANT GOYAL SHRI S.C.L. DAS JS & FA, Ministry of Finance JS (C&C), DEA, Ministry of Finance JS (IS-I), Ministry of Home Affairs END-USER REPRESENTATIVES SHRI AJAY MICHYARI SHRI ARUN K. CHATTERJEE CGM, DCM, Reserve Bank of India JS (PSP) & CPO, Ministry of External Affairs INDEPENDENT DIRECTOR SHRI P.J. MATHEW Ex-IA & AS Officer Annual Report 2017-18 5 Manufacturer of Instruments of Faith SPMCIL LEADERSHIP AT SPMCIL Management Team (As on 31.07.2018) Ms. TRIPTI P. GHOSH Chairman and Managing Director SHRI AJAI KUMAR SRIVASTAV SHRI S.K. SINHA SHRI AJAY AGARWAL Ms. MAMTA SINGH Director (Technical) Director (HR) Director (Finance) Chief Vigilance Officer SHRI RAMAKANT DIXIT SHRI SUDHIR KUMAR SAHU SHRI T.R. GOWDA SHRI S.P. VERMA General Manager, SPP, Hyderabad General Manager, ISP, Nashik General Manager, SPM, Hoshangabad General Manager, CNP, Nashik SHRI SANDEEP JAIN SHRI G.P. AGARWAL SHRI R. HARIPANTH SHRI N.C. MAJUMDAR General Manager, IGM, Hyderabad General Manager, IGM, Noida General Manager, IGM, Mumbai General Manager, IGM, Kolkata SHRI RAJESH BANSAL SHRI BOLEWAR BABU General Manager, BNP, Dewas General Manager (Designated) AUDITORS STATUTORY AUDITOR SECRETARIAL AUDITOR COST AUDITOR M/s. Bhatia & Bhatia M/s. Amit Agrawal & Associates M/s. R.M. Bansal & Company Chartered Accountants Company Secretaries Cost Accountants New Delhi Delhi Delhi 6 Annual Report 2017-18 Manufacturer of Instruments of Faith SPMCIL LETTER TO SHAREHOLDERS Dear Shareholders, Coins achieved during the year 2016-17. Production It gives me immense pleasure to welcome you all of Coins per Employee has also decreased to 2.55 to the 13th Annual General Meeting of the Company. million pieces in 2017-18 as against 3.37 million Your Company has achieved the targets in the pieces achieved in the year 2016-17. The decrease in production of Banknotes, Security Paper, Passports, the production/productivity of Circulating Coins in the Security Inks and other Security Products during the year 2017-18 is due to huge reduction in the indent of year 2017-18. While achieving the production targets Circulating Coins by RBI in the month of July, 2017. the Company has also increased productivity per Your Company has produced 5779 Metric Ton (MT) employee considerably. of Security Paper and supplied 4657 MT of Security Your Company has produced 9219 million pieces of Paper to the printing presses during the year 2017-18. Bank Notes and supplied 8594 million pieces of Bank This is 80.59% higher than the production of 3200 MT Notes to Reserve Bank of India (RBI) during the year of Security Paper during the year 2016-17. Production 2017-18. This is 4.94% higher than the production of of Security Paper per Employee has increased to 5.16 8785 million pieces of the Bank Notes during the last MT in 2017-18 as against 2.74 MT achieved during year i.e. 2016-17. Production of the Bank Notes per the previous year. Your Company has produced 579 Employee has increased to 2.72 million pieces in 2017- Metric Tonnes (MT) of the Security Inks in the year 18 as against 2.48 million pieces achieved during the 2017-18 at Ink Factory, Dewas. year 2016-17. Your Company has produced 6703 FINANCIAL PERFORMANCE million pieces of the Circulating Coins and supplied The Revenue from Operations of your Company 5571 million pieces of the Circulating Coins to RBI has decreased to `4445.16 crores in 2017-18 from during the year 2017-18. This is 30.76% lower than `5966.02 crores during the previous year 2016-17. the production of 9681 million pieces of Circulating Annual Report 2017-18 7 Manufacturer of Instruments of Faith SPMCIL The main reason for drop in the revenues is decrease MODERNISATION ` in the sales of Circulating Coins to 1426.43 crores During the year 2017-18, your Company has taken- ` in the year 2017-18 as against 2707.25 crores in up many modernization and capacity augmentation the year 2016-17. Total expenditure for the year initiatives. CNP, Nashik has installed two numbers of ` ` 2017-18 is 4015.89 crores as compared to 5189.50 Computerised Random Numbering (CRN) systems on crores for the year 2016-17. Profit before Tax (PBT) Numerota Machine. BNP, Dewas has commissioned from continuing operations for the year 2017-18 is PlastiRota III CD machine, Plasimix PM11-Mixer & ` ` 629.94 crores as compared to 914.44 crores for Special Finishing Machine. Five numbers of TRMs the year 2016-17. The company has achieved a Total with press-out devices and two numbers of heavy ` Comprehensive Income of 663.77 crores in the year duty twin shaft mixers have been installed and ` 2017-18 as compared to 615.68 crores in the year commissioned at Ink Factory, Dewas. 2016-17. The technical team of IGM, Mumbai has modified During the year 2017-18, in accordance with the all the 10 barelles of Pickling & Polishing Lines guidelines on Capital Restructuring of CPSEs issued (PPL) to make it suitable for using satellite balls. by the Department of Investment and Public Asset All the processes required for this modification and Management (DIPAM), your Company had bought necessary automation were done in-house by the back 11,82,49,000 Equity Shares of face value of technical team of IGM, Mumbai. IGM, Noida has `10/- each at the book value of `38.50 per share from upgraded conventional Counting & Packaging line Government of India. The total outgo on account of (Bosch Line-I & II) to automate feeding of coins buyback was `533.01 crores inclusive of applicable to counters and to pack in small/big sachet bags tax. The free reserves of the Company had been utilized automatically. Installation, commissioning and for the purpose of aforesaid buyback of shares. The consideration against the aforesaid buyback was testing of Weighing Bridge and Digital Hardness paid on 05.01.2018 to the Government of India. Tester has been done at IGM, Noida. DIVIDEND ISP, Nashik has modernised Booklet Transport Pursuant to guidelines on Capital Restructuring System on Final Finishing Machine No. 4 in APMS issued by DIPAM, the Board of Directors of your Section. The complete system was designed, Company has recommended a Final Dividend @ 5% manufactured and implemented in-house. ISP, Nashik of the Net-worth of the Company for the year 2017- has also modernised Full Book Perforation (except 18 aggregating to `204.87 crores plus applicable first 4 pages) in UNO e-Passport Machine and APMS Dividend Distribution Tax. Passport Machine No.4. The complete mechanism was designed, manufactured and implemented in- MoU PERFORMANCE house, thus saving huge modification cost which Your Company has been granted the ‘Good’ rating might have been charged by OEM. ISP, Nashik has by the Department of Public Enterprises (DPE) for upgraded and modified Numbering Boxes of Rapida its MoU for the year 2016-17.