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42ok¡ okf"kZd izfrosnu 42nd Annual Report 2 0 1 4 - 2 0 1 5 esdkWu fyfeVsM MECON LIMITED Glimpses of CSR Activities 42ok¡ okf"kZd izfrosnu 2014-15 42nd ANNUAL REPORT 2014-15 esdkWu fyfeVsM] jk¡ph - 834002 MECON LIMITED, RANCHI - 834002 CORPORATE VISION To strive to be a leading engineering, design and consultancy organisation with global presence. CORPORATE MISSION To function as an internationally recognized centre of excellence for providing reliable and quality engineering services in the field of: a) Technical consultancy – design and engineering with focus on metal sector. b) Design and supply of plant, equipment and systems with focus on metal sector. c) Implementation of raw industrial ventures from concept to commissioning. d) Up-gradation and expansion of existing plants and infrastructure facilities. Board of Directors Shri A.K. Tyagi Chairman-cum-Managing Director Shri S. Chattopadhyay Shri Deepak Dutta Shri S. R. Sengupta Shri A. P. Singh Director (Project) Director (Commercial) Director (Technology) Director (Engineering) (w.e.f. 01.11.2014) (w.e.f. 01.11.2014) Shri M.N. Sharif Shri S. S. Torka Director (Technology) Director (Engineering) (upto 31.10.2014) (upto 31.10.2014) Shri Vinod Kr. Thakral, IAS Smt. Bharathi S. Sihag, IAS Shri Syedain Abbasi, IAS Director Director Director (upto 12.03.2015) (w.e.f. 16.03.2015) esdkWu eq[;ky;] jk¡ph MECON Head Office, Ranchi 42nd ANNUAL REPORT 2014-15 CONTENTS Particulars Page No. Board of Directors 6 Chairman’s Speech 7-11 Director’s Report 12-42 Disclosure of particulars of contracts/arrangements with related parties 43 Extract of Annual Return in Form MGT - 9 44-50 Details on CSR & Sustainability activities during 2014-15 51-72 Particulars with respect to Technology Absorption 73-74 Management Discussion & Analysis Report 75-83 Report on Corporate Governance 84-90 Independent Auditor’s Report for the Financial Year 2014-15 91-98 Comments of the Comptroller & Auditor General of India 99 Balance Sheet as at 31.03.2015 100 Statement of Profit & Loss for the year ended 31.03.2015 101 Cash Flow Statement for the year ended 31.03.2015 (Indirect Method) 102-103 Notes including Significant Accounting Policy, Segment Reporting & 104-142 Form AOC-1 d g beyon ...aimin xcellence ineering e 5 A house of eng 42nd ANNUAL REPORT 2014-15 BOARD OF DIRECTORS Chairman–cum–Managing Director Shri A.K. Tyagi Directors Shri M.N. Sharif, Director (Technology) (upto 31.10.2014) Shri Subir Chattopadhyay, Director (Project) Shri S.S. Torka, Director (Engineering) (upto 31.10.2014) Shri Deepak Dutta, Director (Commercial) Shri S.R. Sengupta, Director (Technology) (w.e.f. 01.11.2014) Shri A.P. Singh, Director (Engineering) (w.e.f. 01.11.2014) Shri Syedain Abbasi, IAS, Director Shri Vinod Kumar Thakral, IAS, Director (upto 12.03.2015) Smt. Bharathi S. Sihag, IAS, Director (w.e.f. 16.03.2015) Company Secretary Shri Ravi Bambha Deputy General Manager I/c (Finance) Shri R.H. Juneja Auditors M/s V.K. Jindal & Co. Chartered Accountants, 3rd Floor, Shree Gopal Complex, Court Road, Ranchi- 834001 (Jharkhand) Bankers State Bank of India Union Bank of India Indian Overseas Bank Canara Bank United Bank of India Bank of India IDBI Bank Andhra Bank IndusInd Bank ICICI Bank Axis Bank HDFC Bank YES Bank Bank of Baroda A hous e of engi neering ex cellence ...a 6 iming beyond 42nd ANNUAL REPORT 2014-15 CHAIRMAN’S SPEECH at THE Forty-SECOND AnnuaL GeneraL MEETING which includes ` 438.16 crores from Metals Sector and your Company’s intense focus on augmenting its non-metal sector business has met with considerable success with ` 155.24 worth of business from other sectors. The fiscal year 2014-15 has been marked with a number of achievements. Salient among these are : IN THE MetaLS SECTOR It gives me great pleasure to inform you that Hon’ble PM dedicated to the nation the Expansion and Modernisation of RSP where MECON rendered complete Design, Gentlemen, Engineering and Design Supervision services I am glad to welcome you to the Forty-second Annual General Meeting of your Company. The Your Company secured the project of Directors’ Report and the Audited Accounts for the providing EPCM Services for construction year ending 31st March, 2015 along with Statutory of 2 Mtpa Pellet Plant at Nagarnar for Auditor’s Report and comments of Comptroller and NMDC Limited. Auditor General of India thereon, which are already India’s largest Blast Furnace (Kalyani), BOF with you and with your permission, I take these as Convertor and Lime Dolomite Calcination read. Plant at IISCO Steel Plant of SAIL and Benzol Recovery & Distillation Project of I take this opportunity to update you on your Vishakhapatnam Steel Plant, RINL were Company’s performance in the past year and share successfully commissioned. our strategy for the future. The 7m tall Coke Oven Battery#6 PHYSICAL PERFORMANCE of Rourkela Steel Plant, SAIL was successfully commissioned. This year MECON completes 56 illustrious years of contributing to the socio-economic growth of the Hot trials of Continuous Casting Machine country. Along with securing plethora of jobs in and Bar-Mill of IISCO Steel Plant of the diversified fields of Metals, Power, Oil & Gas SAIL were completed and successfully and Infrastructure, we have successfully completed commissioned. many challenging projects which are a testimony to Sinter Machine and New Coke Oven your Company’s technical expertise in diversified Battery#11 of Bhilai Steel Plant, SAIL have fields. both been successfully commissioned. On the business front during the fiscal year your In Mining field, the sheer number of prestigious Company secured new business of ` 593.40 crores mining assignments being handled by your d g beyon ...aimin xcellence ineering e 7 A house of eng 42nd ANNUAL REPORT 2014-15 Company for NMDC, SAIL, OMC, UCIL and other Securing an overseas assignment for valued clients in the country is a testimony to providing Detailed Engineering and MECON’s technological and engineering expertise Consultancy Services for Installation of 10 in mining and beneficiation of various minerals/ Km long Onshore Gas Trunk Pipeline of ores. It is also a matter of pride that your Company Bin Omer Oil Field Yamamah Formation in is the only organization in the country to have given Iraq, for Offshore Construction Specialists consultancy services for as many as 14 different Pte Limited, Singapore. types of minerals. Your Company also had the Your Company successfully commissioned following achievements this fiscal year in this area: the 93 Km Multiproduct pipeline and Secured several projects – some of them are Receiving Station and Terminal of Awa- Salawas Pipeline of Hindustan Petroleum Beneficiation and pellet plant project Corporation Ltd. where the scope for Gua iron ore mines of SAIL constituted mainly Design, Engineering, Engineering and consultancy services Construction & Project Management. for beneficiation plant and slurry pipeline for NMDC at Chattisgarh. In the Power segment, the major developments have been Consultancy for Beneficiation and pellet plant for Odisha Mining Securing assignment for providing Corporation Limited at Gandhamardan Consultancy services for Kodayar Hydro apart from several other orders related Power House-I (1x60 MW) for TANGEDCO, to the development and scaling up of Chennai the production of their Iron Ore and Securing assignment for rendering Detailed Manganese mines Engineering & Consultancy services for NMDC’s crushing and conveying one Turbo Blower for Visakhapatnam system for Deposit 11B at Kirandul was Steel Plant, RINL. The project is under commissioned successfully. The system execution. augments the mining capacity by 7 Mtpa. Both units of the 2x500 MW Power Plant of As substantiation of the technical expertise in the NTPL, for which your Company provided mining field, your Company received an award for Detailed Engineering, Consultancy and “Mine Planning and Design”, presented by Indian Project Management Services, were Bureau of Mines during the “22nd Mine Environment successfully synchronized with the Grid and Mineral Conservation Week”. and commercial operation of one unit declared. In the Oil & Gas Sector, City Gas Distribution Projects are presently the most challenging business. Your In Infrastructure sector the major developments Company has recently been awarded a spate of CGD have been projects on nomination basis which is a reflection Securing assignment from Oil and of the trust reposed in us by our valued clients. The Natural Gas Corporation Limited, Uran significant achievements here have been: for providing Techno Commercial and Securing the CNG and City Gas Environmental Feasibility Study for setting Distribution Project in Bengaluru City up a Desalination Plant at ONGC, Uran for GAIL Gas. The project is of very high Plant. The project is under execution. strategic importance for GAIL Gas and has Successful completion of Phase-I of a very tight time schedule. Modernization of Central Ordnance A hous e of engi neering ex cellence ...a 8 iming beyond 42nd ANNUAL REPORT 2014-15 Depot, Agra for Minsistry of Defence. gas hazard zones, your Company has taken certain Your Company provided Engineering and initiatives which include hazard remediation Project Management Consultancy Services installations on HAZAN & HAZOP study for such (EPMC) for the project. specific area. FINANCIAL PERFORMANCE Corporate SOCIAL RESPONSIBILITY The turnover for the year under review was Your Company’s Social and Sustainability initiatives ` 38,991.60 lakhs vis-à-vis ` 34,129.06 Lakhs in are driven by the conviction that organizations play the previous financial year with Profit before tax a significant role in contributing to build a better at ` 3,300.72 Lakhs vis-à-vis ` 6,869.30 Lakhs for society. Evolving from your Company’s abiding the previous year. The Reserve and Surplus of vision to pursue sustainable and inclusive growth, the Company has increased to ` 37,992.14 Lakhs the CSR strategies are primarily focused on education, for the year against ` 37,413.62 Lakhs for the healthcare, women empowerment, community previous financial year.