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46Th ANNUAL REPORT MECON LIMITED

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46Th ANNUAL REPORT MECON LIMITED YEARS OF CELEBRATING THE MAHATMA MECON MECON MECON LIMTED (A Govt. of India Enterprise) MECON LIMITED Head Oce Vivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India CIN No. - U74140JH1973GOI001199 www.meconlimited.co.in For Enquiry Contact Joint General Manager (Marketing) Phone : +91-651-2483136/2481440, Fax : +91-651-2482214/ 2482189 E-mail: [email protected] Major Oces City Phone Fax e-mail Bangalore +91-80-26252000 +91-80-26576352 [email protected] New Delhi +91-11-22041872 +91-11-22041214 [email protected] th Navi Mumbai +91-22-27812155-58 +91-22-27812275 [email protected] 46 ANNUAL REPORT Kolkata +91-33-22822381-82 +91-33-22824441 [email protected] 2018-19 Find us on : @MECONLimited /@meconranchi meconranchi 396_1019_ Annapurna Press & Process 0651-2331800, [email protected] GLIMPSES OF CSR ACTIVITIES CMD MECON Shri Atul Bhatt, welcoming Hon’ble Shri Dharmendra Pradhan, Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, Minister of Petroleum & Natural Gas and Minister of Steel along with Shri Atul Bhatt, CMD MECON, Shri PK Sarangi, Director (Technical), Shri Goutam Chatterjee, Director (Commercial), Shri Salil Kumar, Director (Projects) and Shri RH Juneja, Director (Finance) during Review meeting of MECON, at Ranchi Foundation Laying of Boys Hostel Building at Orphanage Cataract Surgery of Villagers of Mecon's Adopted Village at (Anmol Basera), Village - Sungi, Karra, District - Khunti Ispat Hospital, Shyamali Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, being briefed about Shri Yogendra Paswan, member of National Commission for Scheduled Caste various projects of MECON during her visit to technical sections of MECON (NCSC) during his visit to MECON Annual Examination of Stitching Training Centres Health Camp at Adopted Village - Sungi, Karra, District - Ranchi Under the aegis of Ministry of Steel, MECON participated in METEC 2019 at Shri Atul Bhatt, CMD MECON, addressing the gathering at India Steel 2019, Dusseldorf, Germany, to showcase India’s Steel Growth story at Indian Steel Pavilion. 4th International Exhibition & Conference on Steel Sector, at Mumbai. Painting Competition (Swacchta Abhiyan) for the School Children Swacchta Abhiyan at Adopted Village - Pancha, of Adopted Village - Sungi, Karra, District - Khunti Bundu, District - Ranchi MECON was awarded 1st prize in the16th National Award on Excellence in Cost Management MECON received 1st CSR Honourable Mention 2019- Excellence in CSR in Challenging Circumstances 2018, category- Consulting & others, by the Institute of Cost Accountants of India from Ministry of Corporate Affairs in presence of Hon'ble President of India and other dignitaries for implementation of Solar water pumping system in adopted village, Pancha CORPORATE VISION To be an internationally recognized brand in design, engineering, consultancy, project management and EPC execution. CORPORATE MISSION • To be a global centre of excellence for providing innovative and cost– effective engineering and technological solutions in Metals & Mining as well as diversified sectors like Energy, Infrastructure, Space, Defence etc. • Leverage deep domain knowledge in the metals and mining sectors to provide solutions from concept to commissioning. • Leverage in-house capabilities to provide engineering, technological and project management services to priority sectors of economy. • Develop indigenous technological base and promote self reliance. • Expand geo-strategic presence and export of services. LEADERSHIP AT MECON As on the date of AGM Shri Atul Bhatt Chairman and Managing Director Shri P. K. Sarangi Shri Goutam Chatterjee Shri Salil Kumar Shri R. H. Juneja Director (Technical) Director (Commercial) Director (Projects) Director (Finance) w.e.f. 20.04.2018 Shri Saraswati Prasad, IAS Smt. Rasika Chaube Government Director Government Director Shri Sisir Kumar Appikatla Shri Deepak Krishan Independent Director Independent Director w.e.f. 23.01.2019 CORPORATE INFORMATION BANKERS State Bank of India Union Bank of India Indian Overseas Bank STATUTORY AUDITOR Bank of Baroda United Bank of India M/s V. Rohatgi & Company YES Bank Chartered Accountants, Andhra Bank 1st Floor, Sarjana Building,1, Main Road, HDFC Bank Ranchi – 834001 (Jharkhand) Canara Bank Axis Bank FINANCE INCHARGE ICICI Bank IndusInd Bank Shri S. Samanta COMPANY SECRETARY CORPORATE IDENTIFICATON NUMBER Shri Ravi Bambha U74140JH1973GOI001199 REGISTERED OFFICE WEBSITE Vivekanand Path, Doranda www.meconlimited.co.in Ranchi - 834002 Jharkhand INDIA MECON - SUCCESS STORY MECON is India’s frontline Design, Engineering & METALS Consultancy, Project Management Consultancy and Contracting organization under Ministry of Steel, Govt. of India, rendering services required for setting-up of projects from Concept to Commissioning in the areas of Metals & Mining, Energy, Infrastructure and other Strategic sectors. With strong workforce of over 1050 experienced & dedicated engineers, scientists and technologists, having network of ENERGY offices spread all over the country and extensive capabilities in handling Consultancy and EPC projects, MECON is one of the biggest Consultancy & Contracting organization in the world. Our multi-skilled expertise in 35 technical disciplines creates the synergy vital for realizing projects in Time, Cost and Quality. INFRASTRUCTURE We have successfully completed over 3,500 consultancy and EPC assignments in India and abroad covering wide range of areas and services. We are an ISO 9001:2015 Company and have strategic technological partnerships with leading International organizations. MAJOR ACHIEVEMENTS 50+ 150+ Years 135+ 53 Publications of Assignments Total presence completed 300+ 16 Patents worldwide EIA / EMP 110+ Sectors Reports NABET since EPC accreditation 1990. projects executed CONTENTS 6 Chairman’s Speech 9 Board Report 26 MGT 9 - Extract of Annual Return 33 AOC 2 - Statement pursuant to Section 134 34 CSR & Sustainability 52 Technology Absorption 53 (MDAR) Management Discussion & Analysis Report 60 Corporate Governance 65 Independent Auditors’ Report 75 C&AG’s Comments 76 Balance Sheet 77 Statement of Profit & Loss 78 Statement of changes in Equity 79 Cash Flow Statement (Indirect Method) 81 Notes to Financial Statements 132 AOC 1 - Statement pursuant to Section 129 MECON CHAIRMAN’S SPEECH First, Strengthen the Core & Strategic sectors; To this end we seek to create further value by developing the opportunities embedded in our existing operations and move up the value chain for offering end-to-end EPC services. Second, Expand the horizon in Diversified sectors; To develop our portfolio, we intend to look beyond our core business for other growth opportunities based on priority sectors of the GoI. Finally Third, expand Geographical reach; To gain access to International markets and seek new opportunities to fuel Company’s future growth. This strategy and our performance this fiscal further emboldens our aspiration of growing into a ₹1500 Crore Company over a period of five years. To summarize, 2018-19 has been a year of good progress for our company. We have emerged stronger with a restructured organization that positions us well to continue executing our strategy over the coming years. Physical and Financial Performance Your Company’s well-planned business initiatives and strong Corporate Strategy have delivered a reasonable performance and we are optimistic about enhancing the growth rate with our carefully prepared business strategies. Your Company has registered a Turnover of ₹470.17 Crore this FY as against ₹445.72 Crore the previous Dear Fellow Shareholders, year and has earned a Profit After Tax of ₹13.74 Crore. The Earnings per Employee of the Company for the t is my pleasure to welcome you all to the 46th Annual financial year 2018-19 has also improved by 17.90% as IGeneral Meeting of your Company. compared to previous year. The 2018-19 has been a year of building on the Your Company has sustained its growth in the domestic achievements of the last fiscal and scaling new heights, market and has taken steps to enhance presence in whilst remaining profitable. It gives me immense various overseas markets. The perseverance to adapt pleasure to inform you that your Company has made new technologies has redefined perception of your giant strides in achieving Order Booking of ₹3191.75 Company, which is now seen to be a Transformational Crore, breaking all records and more than doubling Consultant, bringing-in new technologies, designs, our previous record of ₹1418.65 Crore in FY2016-17. process know-how as well as new standards in This continual development and progress has largely automation and safety in the Iron & Steel Industry. been due to the commitment of Team MECON, support Your Company’s continued business strategy to expand and encouragement from all our stakeholders and the horizon in diversified sectors has yielded rich dividends foresight and judicious planning of your Management, and the ₹3191.75 Crore Order Booked across the 3 in putting into place, a resilient Corporate Plan with business verticals this fiscal, has set a new benchmark business strategy, based on its core competencies and for us, overshadowing all previous records. diversification policy to de-risk business from cyclicity The patronage and massive repeat business that your of Steel sector. Company has received from some of its major clients, Our business strategy, in a nutshell, focuses on a 3 bears testimony to the
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