Emerging Stronger
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EMERGING STRONGER NAVA BHARAT VENTURES LIMITED ANNUAL REPORT 2020-21 02 Emerging Stronger 04 Propelled by our Vision 06 Entrenched in India expanding globally 30 Corporate Social Responsibility Report 57 Directors’ Report 69 Form AOC-1 84 Management Discussion and Analysis 101 Business Responsibility Report 111 Report on Corporate Governance 130 Standalone Financial Statements 192 Consolidated Financial Statements 278 Notice CONTENTS CORPORATE INFORMATION BOARD OF DIRECTORS WHOLE TIME DIRECTORS Mr D Ashok Chairman Mr P Trivikrama Prasad Managing Director Mr Ashwin Devineni Chief Executive Officer Mr GRK Prasad Executive Director SECRETARIAL AUDITORS Mr CV Durga Prasad Director (Business Development) M/s PS Rao & Associates Company Secretaries, Hyderabad INDEPENDENT DIRECTORS REGISTERED OFFICE Dr D Nageswara Rao 6-3-1109/1, Mr K Durga Prasad ‘Nava Bharat Chambers’, Mr GP Kundargi Raj Bhavan Road, Mr A Indra Kumar Hyderabad - 500 082 CA (Mrs) B Shanti Sree Telangana, India Mr Balasubramaniam Srikanth (w.e.f. June 17, 2021) WORKS BOARD COMMITTEES FERRO ALLOY DIVISION Ferro Alloy Plant (Telangana) AUDIT Paloncha - 507 154 Dr D Nageswara Rao Chairman of the Committee Bhadradri Kothagudem District, Telangana Mr K Durga Prasad Mr A Indra Kumar Ferro Alloy Plant (Odisha) Kharagprasad Village - 759 121 NOMINATION AND REMUNERATION Dhenkanal District, Odisha Dr D Nageswara Rao Chairman of the Committee Mr K Durga Prasad POWER DIVISION Mr A Indra Kumar Power Plant (Telangana) Paloncha - 507 154 CORPORATE SOCIAL RESPONSIBILITY Bhadradri Kothagudem District, Telangana Mr D Ashok Chairman of the Committee Dr D Nageswara Rao Power Plant (Odisha) Mr K Durga Prasad Kharagprasad Village - 759 121 Dhenkanal District, Odisha STAKEHOLDERS RELATIONSHIP Mr K Durga Prasad Chairman of the Committee SUGAR DIVISION Mr P Trivikrama Prasad (Ceased operations w.e.f March 31, 2020) Mr GP Kundargi Samalkot - 533 440 East Godavari District, Andhra Pradesh RISK MANAGEMENT Mr Ashwin Devineni Chairman of the Committee MACHINE BUILDING DIVISION Mr GRK Prasad Nacharam, Hyderabad - 500 076, Telangana CA (Mrs) B Shanti Sree BANKERS CHIEF FINANCIAL OFFICER State Bank of India Mr Sultan A. Baig Union Bank of India Bank of India COMPANY SECRETARY UCO Bank Mr VSN Raju ICICI Bank Limited STATUTORY AUDITORS M/s Walker Chandiok & Co LLP REGISTRARS & SHARE TRANSFER AGENTS Chartered Accountants, Hyderabad KFin Technologies Private Limited Selenium Tower B COST AUDITORS Plot 31-32, Financial District, Nanakramguda M/s Narasimha Murthy & Co Serilingampally Mandal Cost Accountants, Hyderabad Hyderabad - 500032, Telangana, India EMERGING STRONGER WE HAVE EVOLVED AND ADVANCED. WE HAVE APPROACHED ALL OBSTACLES AS CHALLENGES AND EMERGED STRONGER. Nava Bharat Ventures Limited | 2 COMPANY OVERVIEW or nearly five decades, Nava Bharat has continuously evolved and advanced on multiple fronts. The Group has looked at all obstacles as Fchallenges and only emerged stronger from them. Every challenge we faced pushed us outside the boundaries of our comfort zones, enabling us to adapt to new environments. We have remained steadfast in our commitment to propel our growth, through every kind of turbulence and disruption. In the same vein, COVID-19 has been just another challenge for us, although quite a formidable one. It occupied our minds throughout the previous year and continues to rankle in our thoughts this year too. But one of the great keys to Nava Bharat’s growth has been its willingness and determination to meet such challenges head-on. Nava Bharat now has good leadership positioned at every level in its business segments, perfected over decades of organizational streamlining, as well as the right balance between business continuity in all its forms. Our business model has been built to perceive new gaps, inefficiencies, and under-realized opportunities. We identify unique value propositions the company can pursue, new channels to deliver value, potential new revenue streams and customer segments, and cost-effective means of generating new value for the organization. Keeping our organizational vision intact and undiluted, we have driven ourselves relentlessly forward, and have remained intensely focused on emerging smarter and stronger year after year. The challenges and changes that we have faced in the recent past have made us emerge even better and stronger. If anything, these unexpected obstacles have only served to propel our organization toward a much stronger tomorrow. We remain focused. And, we are determined to meet the challenges of today and tomorrow, and emerge stronger. PROPELLED BY OUR VISION Nava Bharat Ventures Limited | 4 Nava Bharat Ventures Limited | 4 COMPANY OVERVIEW COMPANY OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS NOTICE We will ensure that our We will be a diversified operations benefit the Company with operations local community and the in different geographies nation, while rewarding and adding the best value the stakeholders. to the available natural resources. Minimizing the impact on the environment shall be a guiding principle in all our business endeavours. Annual Report 2020-21 | 5 Annual Report 2020-21 | 5 ENTRENCHED IN INDIA EXPANDING GLOBALLY OUR ASIA BUSINESSES AFRICA India: Ferro Alloys, Power STRADDLE Zambia: Power and Malaysia: Healthcare Coal Mining Singapore: Healthcare TWO CONTINENTS Nava Bharat Ventures Limited | 6 COMPANY OVERVIEW We at Nava Bharat… ...have the capacity to …are engaged in produce and supply metals manufacturing, power, mining and 2,00,000 MTPA healthcare of ferro alloys every year operate several power ...have a plants with a collective low debt-equity ratio installed capacity of Standalone 0.06x 734 MW Consolidated 0.77x ...employ about ...listed on both of 1,000 people India’s major stock across our offices exchanges - the NSE worldwide and the BSE Nava Bharat started its journey nearly a half-century ago fueled by the ambition to chart a new path in the Indian industrial economy. The initial beginning we made with ferro alloys quickly catapulted us to make successful forays into Power, Mining and Healthcare related industries with footprints straddling India, South-East Asia and Africa. Nava Bharat is today a truly multinational group with operations across the globe. Our international assets have grown to include Maamba Collieries Limited (MCL), Zambia’s largest coal mine concessionaire, which has also led to the development of a 300 MW power plant in Zambia. Our group envisions expansion plans across several regions in India, Africa and South-East Asia by leveraging its core expertise. Driven by the innovative spirit and competence gained over the years, Nava Bharat is set for a new growth trajectory in its growth journey. Annual Report 2020-21 | 7 OUR SUBSIDIARIES IN INDIA... Nava Bharat Projects Limited Nava Bharat Energy India Limited Brahmani Infratech Private Limited ...And, ABROAD Nava Bharat (Singapore) Pte. Limited Maamba Collieries Limited Nava Energy Pte. Limited Largest Independent Power Producer in Zambia – Providing energy security and Nava Energy Zambia Limited diversity to the energy mix Nava Agro Pte. Ltd. Kawambwa Sugar Ltd. Nava Holding Pte. Ltd. Tiash Pte. Limited Compai Pharma Pte. Ltd. Compai Healthcare SDN. BHD. TIS Pte. Limited The Iron Suites Pte. Ltd. Nava Bharat Ventures Limited | 8 COMPANY OVERVIEW Women miner at work – Together... we can inclusive work environment STRONGER TOGETHER Annual Report 2020-21 | 9 CREATING NEWER MILESTONES ALONG OUR WAY TO TODAY... Maamba Collieries (Zambia’s largest coal mine conces- sionaire) added to our international asset base 2015 2010 Effected financial closure for integrated coal and power projects of Maamba Collieries Nava Bharat Ventures Limited | 10 COMPANY OVERVIEW Registered rapid An integrated growth along 300 MW coal fired several fronts, while power plant set also bagging several up by Maamba industry honours Collieries and awards 2017 2016 2019 - Maamba Collieries’ power plant commenced commercial operations - Forayed into healthcare servic- es in Singapore - Commercialized our ash products plant in Telangana (India) Annual Report 2020-21 | 11 Emerging Stronger by the year... Standalone Financials for the FY 2020-21 (` Lakhs) (` Lakhs) TOTAL INCOME EBITDA 1,04,134 1,35,512 1,29,137 1,13,221 1,06,721 19,631 28,989 30,724 25,138 28,686 2016-17 2017-18 2018-19* 2019-20* 2020-21* 2016-17 2017-18 2018-19* 2019-20* 2020-21* (` Lakhs) (` Lakhs) NET PROFIT NET CASH PROFIT FROM OPERATIONS 7,960 16,156 16,619 12,856 15,460 13,186 20,685 20,237 15,928 18,419 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 * excluding the revenue & expenses of sugar operations discontinued during FY 2019-20. Nava Bharat Ventures Limited | 12 COMPANY OVERVIEW (` Lakhs) (` Lakhs) NET WORTH DEBT EQUITY (X) 2,62,547 2,77,025 2,90,699 2,95,334 2,97,676 0.09 0.12 0.11 0.10 0.06 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 (` Lakhs) (` Lakhs) RETURN ON NET WORTH (%) DIVIDEND (%) 3.03 5.83 5.85 4.39 5.21 50 75 75 75 125 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 Annual Report 2020-21 | 13 Emerging Stronger by the year... Consolidated Financials for the FY 2020-21 (` Lakhs) (` Lakhs) TOTAL INCOME EBITDA 2,41,717 32,140 86,240 1,39,336 1,20,028 1,31,831 1,45,611 3,03,536 2,88,092 2,79,752 2016-17 2017-18 2018-19* 2019-20* 2020-21* 2016-17 2017-18 2018-19* 2019-20* 2020-21* (` Lakhs) (` Lakhs) NET PROFIT# NET CASH PROFIT FROM OPERATIONS 20,666 9,290 52,977 92,588 78,190 81,443 27,790 33,902 53,075 55,068 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 * excluding the revenue & expenses of sugar operations discontinued during FY 2019-20.