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CONTENTS Vision & Mission 2 SECL at a Glance 3 Corporate Information 4 Board of Directors 5 The Year at a Glance 6 Performance Trend 7 Chairman’s Letter 10 Awards and Accolades 14 Operational Statistics 15 Directors’ Profile CORPORATE OVERVIEW CORPORATE 21 Our Management Team 33 Our Presence 38 Board’s Report 39 Report on Performance of Subsidiaries 86 Annual Report on CSR 91 Secretarial Audit Report 102 Information u/s 134(3) (m) of the Companies Act, 2013 106 Report on Corporate Governance 108 Certificate on Corporate Governance 122 Management Discussion and Analysis Report 123 STATUATORY REPORTS STATUATORY Comments of C&AG of India 138 Auditors’ Report 139 Balance Sheet 154 Statement of Profit & Loss 156 Statement of Changes in Equity 158 Cash Flow Statement 160 Notes to Financial Statements 162 Comments of C&AG of India (on Consolidated Financial Statements) 231 Auditors’ Report (on Consolidated Financial Statements) 232 Balance Sheet (Consolidated) 242 Statement of Profit & Loss (Consolidated) 244 Statement of Changes in Equity (Consolidated) 246 FINANCIAL STATEMENTS FINANCIAL Cash Flow Statement (Consolidated) 248 Notes to Financial Statements (Consolidated) 250 Statement containing salient features of Financials of Subsidiaries (AOC-1) 321 Annexure-I & IX under Regulation 33 of SEBI (LODR) Regulations 322 CEO & CFO Certification 326 Notice of 33rd Annual General Meeting 327 To be one of the leading To produce and market energy suppliers in the the planned quantity country, by adopting of coal and coal the best practices and products efficiently leading technology from and economically in an mine to market. eco-friendly manner with due regard to safety, conservation and quality. SECL at a Glance South Eastern Coalfields Limited (SECL) is single largest Coal producing Company of India, with 157.35 Million Tonnes of coal production in 2018-19. Coal reserves of SECL are spread over the States of Chhattisgarh & Madhya Pradesh and the Company is operating 70 mines (43 mines in CG & 27 mines in MP). 8.73% Growth in Production ₹ 31,368.72Crore Gross Sales 9.20% Growth in Output-per-Manshift (OMS) ₹ 5,570.67Crore Profit before Tax ₹ 3,331.16 Dividend Per Share for FY 2018-19 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter Corporate Information Corporate Identification Number (CIN): U10102CT1985GOI003161 REGISTERED OFFICE LOCATION OF MINES: South Eastern Coalfields Limited State: Chhattisgarh Seepat Road, Districts: Korba Bilaspur (Chhattisgarh) - 495 006 Tel: 07752 246379-399 Raigarh Fax: 07752 246451 Surguja Website: www.secl-cil.in Koriya Surajpur DIRECTORS & KEY MANAGERIAL PERSONNEL Balrampur Whole-Time Directors State: Madhya Pradesh Shri A. P. Panda, CMD & CEO (w.e.f. 28.12.2018) Districts: Shahdol Dr. R. S. Jha, D(P) Anuppur Umaria CORPORATE OVERVIEW CORPORATE Shri R. K. Nigam, D(T) O (w.e.f. 01.05.2019) Shri Sanjiv Soni, D(F) & CFO (w.e.f. 04.04.2019 up to 09.07.2019) BANKERS Shri M. K. Prasad, D(T) P&P (w.e.f. 18.06.2019) State Bank of India Govt. Nominee Directors ICICI Bank Shri Ashish Upadhyay, IAS, JS (MoC) (w.e.f. 11.01.2019) HDFC Bank Shri S.N. Prasad, D(M), CIL (w.e.f. 10.12.2018) Union Bank of India Independent Directors UCO Bank Dr. Sunil Kumar, (Retd. IAS) (w.e.f. 17.11.2018) Punjab National Bank Dr. B. S. Sahay, Director (IIM Jammu) (w.e.f. 17.11.2018) Bank of Baroda CA Vinod Jain, Chartered Accountant (w.e.f. 19.02.2019) Axis Bank Limited Canara Bank Permanent Invitee IDBI Bank Shri P. K. Jena (PCOM, SECR) (w.e.f. 25.02.2019) United Bank of India Company Secretary Bank of India Shri S. M. Yunus Bank of Maharashtra STATUTORY REPORTS STATUTORY Oriental Bank of Commerce STATUTORY AUDITORS Allahabad Bank M/s. J. N. Mital & Co., Jashpur Nagar Andhra Bank Corporation Bank BRANCH AUDITORS Syndicate Bank M/s. Maheshwari & Associates, Kolkata M/s. D.K. Chhajer & Co., Kolkata DEPOSITORY M/s. Bhutoria Ganesan & Co., Bhopal M/s. National Securities Depository Limited COST AUDITORS REGISTRAR & SHARE TRANSFER AGENT (RTA) M/s. Niran & Co., Bhubaneswar M/s. Venture Capital and Corporate Investments Pvt. Ltd., M/s. Datta Ghosh Bhattacharya & Associates, Kolkata Hyderabad. M/s. Phatak Paliwal & Co., Nagpur M/s. SN & Co., Raipur ISIN INE02GF01011 SECRETARIAL AUDITOR FINANCIAL STATEMENTS FINANCIAL M/s. M&K Associates, Hyderabad SUBSIDIARIES Chhattisgarh East Railway Ltd., Raipur Chhattisgarh East-West Railway Ltd., Raipur 4 33rd Annual Report 2018-19 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL (A Mini Ratna PSU) A Subsidiary of Coal India Limited Board of Directors BOARD OF DIRECTORS (DURING 2018-19) BOARD OF DIRECTORS (As on 22.07.2019) Chairman-cum-Managing Director/CEO Chairman-cum-Managing Director/CEO Shri A. P. Panda Shri A. P. Panda (Addl. Charge w.e.f. 01.07.2018 & appointed permanently w.e.f. 28.12.2018) Shri B. R. Reddy (up to 30.06.2018) Whole-Time Directors Whole-Time Directors Dr. R. S. Jha Director (Personnel) (w.e.f. 29.09.2014) Dr. R. S. Jha, Director (Personnel) Shri R.K. Nigam Shri R. K. Nigam, Director (Tech) Oprn. Director (Tech) Oprn. (w.e.f. 01.05.2019) Shri M. K. Prasad, Director (Tech) P&P Director (Tech) P&P (w.e.f. 28.12.2018 Up to 30.04.2019, Additional Charge upto 18.06.2019) Shri Kuldip Prasad Director (Tech) Oprn. (up to 30.04.2019) OVERVIEW CORPORATE Shri S. M. Choudhary Director (Finance)/CFO (w.e.f. 15.01.2019 upto 31.03.2019) Shri A. P. Panda Director (Finance)/CFO (upto 28.12.2018) Shri M. K. Prasad Director (Tech) P&P (w.e.f. 18.06.2019) Govt. Nominee Directors Govt. Nominee Directors Shri Ashish Upadhyay (w.e.f. 11.01.2019) IAS, Joint Secretary, Ministry of Coal, Shri Ashish Upadhyay IAS, Joint Secretary, Ministry of Coal, Govt. of India, New Delhi Govt. of India,New Delhi Shri S. N. Prasad (w.e.f. 10.12.2018) Director (Marketing), Coal India Limited Shri S. N. Prasad Shri Mukesh Choudhary (up to 10.01.2019) Director (Marketing), Coal India Limited Director, Ministry of Coal, Govt. of India, New Delhi Shri C. K. Dey (up to 30.09.2018) Director (Finance), Coal India Limited REPORTS STATUTORY Independent Directors Independent Directors Dr. Sunil Kumar (w.e.f. 17.11.2018) Dr. Sunil Kumar Retd. IAS Ex-Vice Chairman, Retd. IAS CG State Planning Commission Ex-Vice Chairman, CG State Planning Commission Dr. B. S. Sahay (w.e.f. 17.11.2018) Dr. B. S. Sahay Director, IIM Jammu Director, IIM Jammu CA Vinod Jain (w.e.f. 19.02.2019) CA Vinod Jain Chartered Accountant Chartered Accountant Permanent Invitee Permanent Invitee Shri P. K. Jena (w.e.f. 25.02.2019) Shri P. K. Jena Principal Chief Operations Manager Principal Chief Operations Manager South East Central Railway (SECR) South East Central Railway (SECR) Bilaspur (CG) Bilaspur (CG) Shri U.K. Bal (up to 04.02.2019) Principal Chief Operations Manager STATEMENTS FINANCIAL South East Central Railway (SECR) 28Annual Report 2013-14 Bilaspur (CG) Company Secretary Shri S.M. Yunus 33rd Annual Report 2018-19 5 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter The Year at a Glance Particulars Unit 2018-19 2017-18 Production of Raw Coal: i. Coal Production from Opencast Mines Million Tonnes 142.58 130.25 ii. Coal Production from Underground Mines Million Tonnes 14.770 14.46 Total Coal Production Million Tonnes 157.35 144.71 Sale of Coal ₹ in Crore 31,368.72 30,689.58 Profit before Tax (PBT) ₹ in Crore 5,570.67 3,820.97 Profit after Tax (PAT) ₹ in Crore 3,611.55 2,370.25 Dividend in Crore 2,326.61 2,202.58 CORPORATE OVERVIEW CORPORATE ₹ Dividend Tax ₹ in Crore 478.24 448.39 Retained Profit ₹ in Crore 984.48 345.47 Net Fixed Asset ₹ in Crore 6,043.95 5,554.67 Net Worth ₹ in Crore 3,631.87 3,238.56 Long-term Loans ₹ in Crore 0.00 0.00 Capital Employed ₹ in Crore 11,254.35 9,432.68 Value Added ₹ in Crore 17,466.62 17,349.27 Average Manpower employed during the year Number 56,624 59,676 Value Added per Employee ₹ in Crore 0.31 0.29 STATUTORY REPORTS STATUTORY Debt to Net Worth Ratio 0.00 0.00 Return on Capital Employed % 49.50 40.51 Face value per Share ₹ 1,000.00 1,000.00 Dividend per Share ₹ 3,331.61 7,372.04 Book Value per Share ₹ 5,436.47 4,516.44 Earnings per Share ₹ 5,086.13 7,612.06 Note: Previous period’s figures have been regrouped and rearranged wherever considered necessary for comparison. FINANCIAL STATEMENTS FINANCIAL 6 33rd Annual Report 2018-19 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter (A Mini Ratna PSU) A Subsidiary of Coal India Limited Performance Trend CORPORATE OVERVIEW CORPORATE STATUTORY REPORTS STATUTORY FINANCIAL STATEMENTS FINANCIAL 33rd Annual Report 2018-19 7 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter CORPORATE OVERVIEW CORPORATE STATUTORY REPORTS STATUTORY FINANCIAL STATEMENTS FINANCIAL 8 33rd Annual Report 2018-19 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter SECL Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter (A Mini Ratna PSU) A Subsidiary of Coal India Limited CORPORATE OVERVIEW CORPORATE STATUTORY REPORTS STATUTORY FINANCIAL STATEMENTS FINANCIAL 33rd Annual Report 2018-19 9 Corporate Information | Board of Directors | The Year at a Glance | Performance Trend | Chairman’s Letter Dear Shareholders, It gives me immense pride to present the performance of your company for the Financial Year 2018-19.