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Msezl.Com Karnataka CIN: U45209KA2006PLC038590

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Msezl.Com Karnataka CIN: U45209KA2006PLC038590 Mangalore SEZ Limited ANNUAL REPORT - 2018 CORPORATE INFORMATION Board of Directors Shri Shashi Shanker : Chairman Shri Paritosh Kumar Gupta : Managing Director Shri I.S.N Prasad : Independent Director Shri Srinivas S Kamath : Independent Director Shri A K Sahoo : Nominee Director of ONGC Smt. Cholpady Vathika Kamath : Additional Director (Co-opted on 14th November 2017) Shri Saibal Kumar De : Additional Director (Co-opted on 22nd December 2017) Shri M. Venkatesh : Additional Director (Co-opted on 25th June 2018) Shri Pankaj Kumar Pandey : Nominee Director (up to 19th August 2017) Shri Dinesh Kumar Sarraf : Chairman (up to 01st October 2017) Shri Jeevan Saldanha : Nominee Director of KCCI (up to 04th November 2017) Shri Pradeep Puri : Nominee Director of IL&FS (up to 23rd November 2017) Shri H Kumar : Nominee Director of ONGC (up to 01st June 2018) Company Secretary Chief Financial Officer V. Phani Bhushan Gouranga Charan Swain Statutory Auditors Internal Auditors Secretarial Auditor M/s Maharaj N R Suresh and Co., M/s Chokshi&Chokshi LLP, M/s P.N. Pai & Co, Chartered Accountants, Chennai. Chartered Accountants, Mumbai. Company Secretaries, Mangaluru. Bankers State Bank of India Corporation Bank Security Trustee Corporate Account Group – II, MG Road Branch, SBICAP Trustee Company Ltd Redfort Capital Parsvnath Towers, Mangalore City 202, Maker Tower E, 4th & 5th Floor, Bhai Veer Singh Marg, Corporation Building Cuffe Parade, Gole Market, New Delhi - 110 001 Lalbagh, Mangalore - 575 006 Mumbai – 400 005 Registered Office Project Site 3rd Floor, MUDA Building, Ashok Nagar, Urwa Stores, Bajpe, Permude Village, Mangaluru – 575 006, Dakshina Kannada Dist, Karnataka. Mangaluru – 574 509 Phone: 0824-2452748 / 2452750, Fax: 0824-2452749 Dakshina Kannada (Dist), Website: www.mangaloresez.com; Email: [email protected] Karnataka CIN: U45209KA2006PLC038590. CONTENTS Sl.No. Particulars Page Nos. 1 12th Annual General Meeting Notice 2 2 Board’s Report 15 3 Secretarial Audit Report 31 4 Corporate Governance Report 35 5 Auditors’ Report on Standalone Financial Statements 60 6 Standalone Financial Statements 65 7 Auditors’ Report on Consolidated Financial Statements 121 8 Consolidated Financial Statements 126 9 Attendance Slip 181 10 Proxy Form 183 1 Mangalore SEZ Limited ANNUAL REPORT - 2018 NOTICE OF 12TH ANNUAL GENERAL MEETING Notice is hereby given that the 12th Annual General Meeting of the Members of MANGALORE SEZ LIMITED (MSEZL) will be held on Friday, the 28th September, 2018 at 12:30 pm at The Ocean Pearl, Navabharath Circle, Kodialbail, Mangalore - 575 003 to transact the following business: ORDINARY BUSINESS: 1. To receive, consider and adopt a. the Audited Standalone Financial Statements of the Company for the financial year ended March 31, 2018, the report of the Board of Directors and the report of the Auditors thereon; and b. the Audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2018 and the report of the Auditors thereon. 2. To appoint a Director in place of Shri A.K. Sahoo (DIN: 07355933) who retires by rotation and being eligible, offers himself for re-appointment. 3. To appoint the Statutory Auditors To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: “RESOLVED THAT in accordance with the provisions of Sections 139, 141 and 142 of the Companies Act, 2013 and other applicable provisions, if any, read with rules framed there under (including any statutory modification or re-enactment thereof for the time being in force and as may be enacted from time to time) approval of the members be and is hereby accorded for the appointment of M/s Ray & Ray, Chartered Accountants, bearing Registration No.301072E, as the Statutory Auditors of the Company for a period of 5 years from the conclusion of 12th Annual General Meeting till the conclusion of 17th Annual General Meeting at such remuneration as may be decided by the Audit Committee / Board of Directors thereon”. FURTHER RESOLVED THAT the Board of Directors (which term includes a duly constituted Audit Committee of the Board of Directors) be and is hereby authorized to do all such acts, deeds, matters and things as may be considered necessary, desirable and expedient for giving effect to this Resolution and / or otherwise considered by them to be in the best interest of the Company.” SPECIAL BUSINESS: 4. To consider and if thought fit, to pass with or without modification (s), the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 (Act) read with the Companies (Appointment and Qualifications of Directors) Rules, 2014 (the Rules), including any statutory modification(s) or re-enactments thereof for the time being in force, and in accordance with the Articles of Association of the Company, Shri Shashi Shanker (DIN: 06447938), who was appointed as an Additional Director of the Company with effect from October 16, 2017, pursuant to Section 161 of the Act and the Articles of Association of the Company, and who holds office up to the date of this Annual General Meeting of the Company, who being eligible, offers himself for appointment and in respect of whom a notice in 2 Mangalore SEZ Limited ANNUAL REPORT - 2018 writing under Section 160 of the Act has been received from a member proposing his candidature for the office of Director, be and is, hereby appointed as Director (Nominee of ONGC) of the Company, liable to retire by rotation.” 5. To consider and if thought fit, to pass with or without modification (s), the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 (Act) read with the Companies (Appointment and Qualifications of Directors) Rules, 2014 (the Rules), including any statutory modification(s) or re-enactments thereof for the time being in force, and in accordance with the Articles of Association of the Company, Smt. Cholpady Vathika Kamath (DIN: 05351602), who was appointed as an Additional Director of the Company with effect from November 14, 2017, pursuant to Section 161 of the Act and the Articles of Association of the Company, and who holds office up to the date of this Annual General Meeting of the Company, who being eligible, offers herself for appointment and in respect of whom a notice in writing under Section 160 of the Act has been received from a member proposing her candidature for the office of Director, be and is, hereby appointed as Director (Nominee of KCCI) of the Company, liable to retire by rotation.” 6. To consider and if thought fit, to pass with or without modification (s), the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 (Act) read with the Companies (Appointment and Qualifications of Directors) Rules, 2014 (the Rules), including any statutory modification(s) or re-enactments thereof for the time being in force, and in accordance with the Articles of Association of the Company, Shri Saibal Kumar De (DIN: 00498241), who was appointed as an Additional Director of the Company with effect from December 22, 2017, pursuant to Section 161 of the Act and the Articles of Association of the Company, and who holds office up to the date of this Annual General Meeting of the Company, who being eligible, offers himself for appointment and in respect of whom a notice in writing under Section 160 of the Act has been received from a member proposing his candidature for the office of Director, be and is, hereby appointed as Director (Nominee of IL&FS) of the Company, liable to retire by rotation.” 7. To consider and if thought fit, to pass with or without modification (s), the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 152, 161 and other applicable provisions, if any, of the Companies Act, 2013 (Act) read with the Companies (Appointment and Qualifications of Directors) Rules, 2014 (the Rules), including any statutory modification(s) or re-enactments thereof for the time being in force, and in accordance with the Articles of Association of the Company, Shri Venkatesh Madhava Rao (DIN 07025342), who was appointed as an Additional Director of the Company with effect from June 25, 2018, pursuant to Section 161 of the Act and the Articles of Association of the Company, and who holds office up to the date of this Annual General Meeting of the Company, who being eligible, offers himself for appointment and in respect of whom a notice in writing under Section 160 of the Act has been received from a member proposing his candidature for the office of Director, be and is, hereby appointed as Director (Nominee of ONGC) of the Company, liable to retire by rotation.” 8. To consider and if thought fit, to pass with or without modification (s), the following resolution as a Special Resolution: “RESOLVED THAT pursuant to Section 196, 197, 203 and other applicable provisions if any, of the Companies Act 2013 (“The Act”) read with Schedule V of the Act and the Companies (Appointment and Remunerations of Managerial Personnel) Rules, 2014 including any statutory modifications or enactments thereof from time to 3 Mangalore SEZ Limited ANNUAL REPORT - 2018 time, approval of the Shareholders be and is hereby accorded for the re-appointment of Shri Paritosh Kumar Gupta (DIN: 01054182), as Managing Director for
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