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44 Ok¡ Okf 44 ok¡ okf"kZd izfrosnu 44th Annual Report 2016-17 esdkWu fyfeVsM MECON LIMITED Hon'ble Shri Chaudhary Birender Singh, Union Shri Atul Bhatt, CMD MECON Ltd. welcoming Hon'ble Minister of Steel along with Dr. Aruna Sharma, Shri Chaudhary Birender Singh, Union Minister of Secretary, Ministry of Steel and Shri Atul Bhatt, CMD Steel at MECON. MECON Ltd. during India Steel Exhibition at Mumbai. Hon'ble Shri Chaudhary Birender Singh, Union Minister of Steel along with Shri Atul Bhatt, CMD MECON Ltd. and Shri Anupam Prakash, Director, Ministry of Steel, during launching of ANGARA 7.1 and LOHA 4250 at MECON, Ranchi. Hon'ble Shri Vishnudeo Sai, Union Minister of State for Steel alongwith Ms Urvilla Khati, Joint Secretary, Ministry of Steel and Shri Atul Bhatt, CMD, MECON Ltd.during SMART INDIA HACKATHON 2017 at Indore V I To strive to be a leading engineering, S I design and consultancy organisation O with global presence. N To function as an internationally recognized M centre of excellence for providing reliable and quality engineering services I in the field of : a) Technical consultancy – design and S engineering with focus on metal sector. b) Design and supply of plant, equipment S and systems with focus on metal sector. c) Implementation of raw industrial I ventures from concept to commissioning. O d) Up-gradation and expansion of existing plants and infrastructure facilities. N Board of Directors Shri Atul Bhatt CMD (w.e.f. 01.10.2016) Shri P. K. Sarangi Shri Goutam Chatterjee Director (Technical) Director (Commercial) (w.e.f. 01.01.2017) (w.e.f. 20.03.2017) Shri Saraswati Prasad, IAS Shri Syedain Abbasi, IAS Shri Sisir Kumar Appikatla Government Director Government Director Independent Director (w.e.f. 08.02.2017) As on 21.09-2017 MANAGEMENT DURING THE YEAR CMD Shri A. K. Tyagi, (upto 30.09.2016) Shri Atul Bhatt (w.e.f. 01.10.2016) WHOLE TIME DIRECTORS Shri Subir Chattopadhyay, Director (Project) (upto 31.08.2017) Shri Deepak Dutta, Director (Commercial) (upto 31.10.2016) Shri S. R. Sengupta, Director (Technology) (upto 31.12.2016) Shri A. P. Singh, Director (Engineering) (upto 31.12.2016) Shri P. K. Sarangi, Director (Technical) (w.e.f. 01.01.2017) Shri Goutam Chatterjee, Director (Commercial) (w.e.f. 20.03.2017) GOVERNMENT DIRECTORS Smt. Bharathi S. Sihag, IAS (upto 30.11.2016) Shri Saraswati Prasad, IAS (w.e.f 08.02.2017) Shri Syedain Abbasi, IAS INDEPENDENT DIRECTOR Shri Sisir Kumar Appikatla REFERENCE INFORMATION COMPANY SECRETARY Shri Ravi Bambha GENERAL MANAGER (FINANCE) Shri R.H. Juneja STATUTORY AUDITOR M/s V. Rohatgi & Company, Chartered Accountants, 1st Floor, Sarjana Building,1, Main Road, Ranchi – 834001 Jharkhand BANKERS State Bank of India Bank of India Union Bank of India IDBI Bank Indian Overseas Bank Bank of Baroda United Bank of India YES Bank Andhra Bank HDFC Bank Canara Bank Axis Bank ICICI Bank IndusInd Bank CONTENTS Particulars Page No. Chairman’s Speech 6-10 Board Report 11-36 Extract of Annual Return in Form MGT - 9 37-44 Disclosure of particulars of contracts / arrangements with related parties 45 Details on CSR & Sustainability activities during 2016-17 46-63 Particulars with respect to Technology Absorption 64-65 Management Discussion & Analysis Report 66-74 Report on Corporate Governance 75-81 Statutory Auditor's Report for the Financial Year 2016-17 82-90 Comments of the Comptroller & Auditor General of India 91 Balance Sheet as at 31.03.2017 92 Profit & Loss Account for the year ended 31.03.2017 93 Cash Flow Statement for the year ended 31.03.2017 (Indirect Method) 94-95 Notes including Significant Accounting Policy, Segment Reporting & 96-136 Form AOC-1 MECON Limited CHAIRMAN’S SPEECH engineering consultancy and industrial growth of our nation. Your Company has provided the technological impetus in virtually every venture of steel making in the country since the ‘60s and has played a stellar role in projects of national importance – be it the space programmes of ISRO - 2nd Launch Pad at Sriharikota, during a regime of technological denial, the Integrated Engine Testing Facility of IPRC, Mahendragiri, and Pay Load Assembly Building , Ahmedabad; Project Seabird Karwar Phase-I and now Phase-II for the Indian Navy, the CRGO Pilot Plant at NML for Ministry of Steel or the ambitious Urja Ganga Project of the Prime Minister - the list Dear Fellow Shareholders, is long and commendable. I am delighted to welcome you all to the 44th Annual As someone who has not experienced growing up General Meeting of your Company. This is my first the ranks of MECON, the hugely varied nature of the Annual General Meeting as the Chairman and Company’s business was indeed a revelation. I was Managing Director of your Company. I would like faced with a lot of legacy issues and uncertainties to reflect on the year gone by and share with you looming in the minds of the employees. My focus glimpses of the future direction of your Company. is to transform the Company from within, make But before all that, I, with your permission take the breakthrough improvements and radical changes Directors’ Report, audited annual accounts along through creating, communicating and embedding new with Independent Auditor’s Report and comments approaches and empowering all to act on this vision. of the Comptroller and Auditor General of India The impact that disruptive technologies are having thereon, which are already with you, as read on market scenario around the world is creating new business opportunities – capitalizing on which MECON – TAKING CHARGE requires focus on collaborations and embracing I take this opportunity to reminisce of the day I technology to reconfigure processes, procedures took over the reins of your Company – I was seized and boost efficiencies. We are in the process of with the prospect of not only spearheading the articulating a business strategy to turnaround our wide spectrum of business activities of MECON Company and have set ourselves aggressive and from EPC/ Turnkey jobs to Project Consultancy in ambitious targets which I strongly believe are diversified sectors of Iron and Steel, Non-ferrous achievable through adoption of tactical business metals, Power, Oil & Gas and Infrastructure, but models. I speak for the entire Board when I say that also to be a part of a Company whose legacy of we are committed to ensure sustenance of growth technological and engineering excellence has momentum gained, through continuous evolution contributed significantly to self reliance in of our business strategy. 6 44th Annual Report 2016-17 MECON - CONTRIBUTION TO Nation in implementation of Domestically BUILDING Manufactured Iron and Steel Products (DMI&SP) Policy, providing preference to The start of my journey with MECON has been ‘Make in India’ over imported Iron & Steel. very encouraging, as evidenced by the performance during the last fiscal year, both in quantitative Minimum Import Price (MIP) reports were and qualitative terms. With focused drive and prepared for various grades of stainless steel discipline, new initiatives are beginning to show products and Aluminium products. tangible results. Your Company was entrusted by MoS in During the just concluded fiscal year, the Company September 2016, for coordination of the secured a record order booking of `1419 Crores activities of CPSEs under MoS in the world’s (all time high in the history of the Company) of largest digital nation building initiative - which more than `1300 Crores was booked in Smart India Hackathon 2017 - a 36 hours the second half of the year alone. With the metals non-stop digital programming competition for sector under stress, Company’s intense focus on students of Technical Institutions, to provide augmenting its non-metal sector business has met sustainable innovative solutions to real time with considerable success and business worth challenges/ problems faced by the industries. ` 783 Crore has been secured from the diversified Diligent coordination by us, ensured the sectors of Infrastructure, Oil & Gas, Power, Defence successful culmination of the mega event, and Space, which is 55% of total order booking. organised from 1st to 2nd April 2017 at Indore, where 56 teams from engineering colleges Your Company has shouldered various across India participated. MoS lauded responsibilities entrusted by Ministry of Steel, MECON for organizing, coordinating and Govt. of India, wherein the Company has provided smooth implementation of the event. valuable technical inputs to contribute towards rapid National development on all fronts, which Your Company with its contribution directly have a long term value, not only for the region or impacting the nation, has passionately industry, but across several sectors and economy pursued its compelling vision to create at large. Few assignments of National importance a national Consultancy institution. In have been : continued efforts towards this, the Company is privileged to be associated with GAIL, as The National Steel Policy, wherein Engineering Consultant, in implementation your Company provided inputs for its of Urja Ganga, the highly ambitious project preparation. This policy aims at steering of our Prime Minister. This gas pipeline the industry to achieve its full potential, project aims to provide piped cooking (PNG) enhance steel production with focus on high gas to residents of the eastern region of the end value added steel, while being globally country and CNG gas for the vehicles as well competitive. as industries. Vision Document of Ministry of Steel Today, your Company is a multi disciplinary force (MoS) : MECON provided various inputs to reckon with, both in national and international and clarifications for preparation of this arena, encompassing diversified areas of activities. document. Its growth has been steady, selective and firmly With GoI’s thrust on Increasing Steel rooted in technology, to serve the nation’s Demand, your Company is contributing multifarious requirements.
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