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Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED (A Subsidiary of Coal India Limited) A Mini Ratna Company GONDWANA PLACE: KANKE ROAD RANCHI - 834 031 CIN: U14292JH1975GOI 001223 Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED Vision To be the global market leader in an expanding earth resource sector and allied professional activities. Mission To provide total consultancy in coal and mineral exploration, mining, engineering and allied fields as the premier consultant in India and also in the international arena. Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED CONTENTS Sl. Page Subjects No. No. 1. Management During 2013-2014 1 2. Members of The Board as on 01.05.2014 2 3. Bankers, Auditors and Registered Office 3 4. Notice for 39th Annual General Meeting 4 5. Chairman’s Statement 5 6. Performance at a Glance 12 7. Financial Overview & Statistics 13 8. Directors’ Report 17 9. Annexure To Directors’ Report 100 10. CEO & CFO Certificate 106 11. Corporate Governance Certificate 107 12. Statutory Auditors’ Report and replies of Management 108 Comments of the Comptroller & Auditor General of India under 13. 113 Section 619 (4) and replies of Management 14. Auditors’ Report on Memorandum of Understanding 114 15. Audited Statements of Accounts 131 16. Notes to Accounts along with Cash Flow Statement 135 17. Significant Accounting Policies and Notes on Accounts with Segment wise Statement 160 Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED BOARD OF DIRECTORS Sri Amal Kumar Debnath Chairman-cum-Managing Director Sri D. K. Ghosh Sri R. K. Chopra Sri Shekhar Saran Sri V. K. Sinha Sri N. Kumar Sri D. N. Prasad Shri Rakesh K. Mittal Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED MANAGEMENT DURING 2013-2014 Shri Amal Kumar Debnath : Chairman-cum-Managing Director (From 19.02.2013) Functional Directors Shri Baidya Nath Basu : Director (Technical) (Upto 31.05.2013) Shri Dilip Kumar Ghosh : Director (Technical) (From 13.10.2011) Shri Rajesh Kumar Chopra : Director (Technical) (From 13.01.2012) Shri Shekhar Saran : Director (Technical) (From 01.06.2013) Shri V.K. Sinha : Director (Technical) (From 08.01.2014) Part – time Official Director Shri Devulapalli Narasimha Prasad : Adviser (Projects), Ministry of Coal, (From 27.01.2010) Shri Nagendra Kumar : Director (Technical), Coal India Ltd.(From 29.02.2012) Independent Directors Prof. Vedala Rama Sastry : Director (Upto 23.12.2013) Shri Pramod Kumar Misra : Director (Upto 23.12.2013) Dr. Mukesh Khare : Director (Upto 23.12.2013) Prof. P. K. J. Mohapatra : Director (Upto 23.12.2013) Shri Rakesh Kumar Mittal : Director (From 01.11.2013) Permanent Invitee Shri Sharad Ghodke : Director, Ministry of Coal, New Delhi Company Secretary Shri P. Lazar : Dy. G. M. (Finance) / Company secretary (From 01.04.2011) 1 Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED MEMBERS OF THE BOARD AS ON 01.05.2014 Functional Directors Shri Amal Kumar Debnath : Chairman-cum-Managing Director Shri Dilip Kumar Ghosh : Director (Technical) Shri Rajesh Kumar Chopra : Director (Technical) Shri Shekhar Saran : Director (Technical) Shri V.K. Sinha : Director (Technical) Part-time Official Directors Shri Devulapalli Narasimha Prasad : Adviser (Projects), Ministry of Coal,New Delhi Shri Nagendra Kumar : Director (Technical), Coal India Ltd. Part-time Non-Official Director Shri Rakesh Kumar Mittal : Independent Director Permanent Invitee Shri Sharad Ghodke : Director, Ministry of Coal, New Delhi Company Secretary Shri P. Lazar : Dy. G. M. (Finance) / Company secretary Annual Report & Accounts 2013-14 2 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED BANKERS, AUDITORS AND REGISTERED OFFICE BANKERS State Bank of India United Bank of India Canara Bank Bank of Maharashtra Union Bank of India Central bank of India UCO Bank Syndicate Bank AUDITORS M/s TODI TULSYAN & Co. (ER0043) Chartered Accountants, 602, LUV KUSH TOWER Exhibition Road, Patna – 800 001 (Bihar) REGISTERED OFFICE Central Mine Planning & Design Institute Limited, Gondwana Place, Kanke Road, Ranchi - 834 031, Jharkhand, India CIN: U14292JH1975GOI 001223 Ph. No. : 0651-2230169 Fax No. : 0651-2231447 E-mail : [email protected] Website: www.cmpdi.co.in 3 Annual Report & Accounts 2013-14 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED NOTICE FOR 39th ANNUAL GENERAL MEETING Ref. No. CS/AGM-39/2014/3145 Dated:15th May,2014 Notice is hereby given to all the shareholders of Central Mine Planning & Design Institute Limited that the 39th Annual General Meeting of the Company will be held on 10th June 2014, the Tuesday at 11.00 A.M. at the Registered Office of the Company, Gondwana Place, Kanke Road, Ranchi to transact the following business: ORDINARY BUSINESS : 1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2014 and Profit & Loss Account for the year ended on that date along with the Notes attached thereto and the Reports of Statutory Auditor and Comptroller & Auditor General of India thereon with the replies given by the management. 2. To receive and adopt the Report of the Board of Directors for the year 2013-14. 3. To appoint a Director in place of Sri N. Kumar, official part-time Director who retires in terms of Article 34 (1) (e) (iii) of the Articles of Association of the Company and is eligible for re-appointment. 4. To appoint a Director in place of Sri D. N. Prasad, official part-time Director who retires in terms of Article 34 (1) (e) (iii) of the Articles of Association of the Company and is eligible for re-appointment. By Order of the Board of Directors For Central Mine Planning & Design Institute Limited Sd/- (P. Lazar) Dy. General Manager (Finance)/ Company Secretary Registered Office : Central Mine Planning & Design Institute Limited, Gondwana Place, Kanke Road, Ranchi - 834 031, Jharkhand, India N.B. 1. A member entitled to attend and vote, is entitled to appoint a proxy to attend and vote instead of him self and the proxy need not be a member of the Company. 2. Pursuant to Section 224(8) of the Companies act 1956, the members of the company in its 27th Annual General Meeting held on 26th September 2002 authorised the Board of Directors to fix the remuneration of Statutory Auditors appointed by Comptroller and Auditor General of India under Section 619(2) of the Companies act 1956. To All the Shareholders The Auditors of the Company The Chairman of the Audit Committee All the Directors of the Company Annual Report & Accounts 2013-14 4 CENTRAL MINE PLANNING & DESIGN INSTITUTE LIMITED Chairman’s Statement Dear Shareholders, I have great pleasure to extend a very warm welcome to all of you to the 39th Annual General Meeting of CMPDIL and present to you the Annual Report of your Company for the financial year 2013-14. The Report of Directors and the Audited Accounts of your Company for the period ended 31st March, 2014 together with Report of the Statutory Auditors and the report and review of the Comptroller and Auditor General of India have already been provided to all the shareholders of the Company. 1. The growth Profile: CMPDI was originally conceived and proposed in 1972 by a joint study Shri Amal Kumar Debnath group with Polish experts as a comprehensive planning set-up under one Chairman-cum-Managing Director roof for entire Indian mining industry. Your company has been providing in-house consultancy services to CIL and its subsidiaries in the areas of coal exploration, mine planning & design, environment engineering, coal beneficiation & utilization, allied engineering services, field services, etc. Similar services are also being provided to clients other than CIL including clients from metal mining sectors. Additionally, CMPDI also renders services to MoP & NG and Ministry of Coal pertaining to non-CIL blocks, CBM and Shale Gas etc. Over the years after formation of CMPDI, the level of expertise of its planners and engineers was raised through bilateral agreements with foreign institutions of advanced coal mining countries like Giproshakht of erstwhile USSR, Kopex of Poland and British Mining Consultants of the UK for carrying out joint planning exercises for large opencast and underground projects. In addition to increasing the level of expertise of CMPDI personnel, significant build up of infra structural facilities was also undertaken by establishing computer and laboratory facilities. All of these measures ensured the company a unique position in the mineral and mining sector as a total solution provider. However, with the changes in the business environment worldwide, such bilateral arrangement lost significance and momentum in 1990s. Erosion of the company’s strength in terms of expert manpower also started taking place in the 90s due to superannuation of individuals, transfer to other CIL subsidiaries and non-induction of young engineers. Moreover, changing business scenario and consequent changes in opportunities in the mining sector within the country and abroad fuelled exodus of experts mainly after 2000. Although, introduction of ISO Standards and computerization to some extent, including use of software related to mining industry, and addition of some equipment especially related to environmental facilities and coal characterization could be carried out, the company was falling behind in overall upgradation of its services and facilities to a level of
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