MECON MECON MECON LIMITED MECON LIMITED (A Govt. of India Enterprise) (A Govt. of India Enterprise) Head Oce Vivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India CIN No. - U74140JH1973GOI001199 www.meconlimited.co.in For Business Enquiry Chief General Manager (Marketing) Phone : +91-651-2483101, 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] 47th ANNUAL REPORT Find us on : @MECONLimited @meconranchi meconranchi 2019-20 217_1120_ Anapurna Press & Process 0651-2331800, [email protected] GLIMPSES OF CSR ACTIVITIES Hon’ble Shri Rabindra Nath Mahto, Speaker Jharkhand Vidhan Sabha Towards Adopting COVID 19 appropriate behavior in New Normal, a Construction of Community Toilet Complex at Hamlet- Bartoli at "Community Education Centre at Irgoo toli, & his team visited MECON pledge taking ceremony was organized at MECON Adopted Village- Pancha, Block- Bundu, District- Ranchi Kishoreganj, District- Ranchi" MECON CSR team led by Shri R.H. Juneja, Director (F) and Shri On the occasion of Rashtriya Ekta Diwas, a pledge taking ceremony Free Health Camp at Adopted Village- Sungi, Nutritional Supplementation program for the children of Adopted Sanjeev Kumar, ED (CS) distributed masks and soaps in Sungi Village, was held at MECON office, Shri Salil Kumar, Director (P) administered Block- Karra, District- Khunti Village- Sungi, Block- Karra, District- Khunti as part of COVID 19 Appropriate Behavior Awareness Campaign pledge in Hindi and Shri R.H. Juneja, Director(F) in English In recognition of initiatives towards promoting gender equality Shri R.H. Juneja Director (F) graced as Guest of Honour at 41st Construction of Boys Hostel Building at Orphanage - Hostel of “Swachhata Shapath” and a talk on “Swachhata and Hygiene MECON has been conferred with ‘Recognition of WIPS Activities Cost Conference organized by EIRC of ICMAI Adopted Village- Sungi, Block- Karra, District- Khunti practices” at Adopted Village- Pancha, Block- Bundu, District- Ranchi Award, tribute to Excellence in Public Enterprise Management under Miniratna & other category’ at 30th National Meet of WIPS To be an internationally recognized brand VISION in design, engineering, consultancy, project management and EPC execution. • 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. MISSION • 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. MECON MECON Limited Shri Dharmendra Pradhan Hon’ble Union Minister of Petroleum & Natural Gas and Minister of Steel, Govt. of India Shri Faggan Singh Kulaste Hon’ble Union Minister of State for Steel Govt. of India Shri Pradip Kumar Tripathi Secretary to GoI, Ministry of Steel LEADERSHIP AT MECON Shri Atul Bhatt Chairman and Managing Director Smt. Rasika Chaube Shri Vijoy Kumar Singh Government Director Government Director Shri Salil Kumar Shri R. H. Juneja Shri S.K. Verma Shri A. K. Agrawal Director (Projects) Director (Finance) Director (Commercial) Director (Technical) Shri Deepak Krishan Smt. Manju Chandra Independent Director Independent Director As on the date of AGM CORPORATE INFORMATION BOARD LEVEL COMMITTEES* BANKERS Audit Committee State Bank of India Shri Deepak Krishan Union Bank of India Smt. Manju Chandra Indian Overseas Bank Shri R.H. Juneja Bank of Baroda CSR & Sustainability Committee United Bank of India Smt. Manju Chandra YES Bank Shri Deepak Krishan Andhra Bank Shri R.H. Juneja HDFC Bank Nomination & Remuneration Canara Bank Committee Axis Bank Shri Deepak Krishan ICICI Bank Smt Rasika Chaube IndusInd Bank Smt. Manju Chandra Shri Atul Bhatt STATUTORY AUDITOR COMPANY SECRETARY M/s V. Rohatgi & Company Chartered Accountants, Shri Ravi Bambha 1st Floor, Sarjana Building,1, Main Road, Ranchi – 834001 (Jharkhand) FINANCE INCHARGE REGISTERED OFFICE Shri S. Samanta Vivekanand Path, Doranda Ranchi - 834002 Jharkhand INDIA Website : www.meconlimited.co.in CIN : U74140JH1973GOI001199 *As on the date of AGM CONTENTS 6 Chairman’s Speech 9 Board Report 30 MGT 9 - Extract of Annual Return 38 AOC 2 - Statement pursuant to Section 134 39 Corporate Social Responsibility (CSR) & Sustainability 69 Technology Absorption 71 Management Discussion & Analysis Report (MDAR) 77 Report on Corporate Governance 83 Independent Auditors’ Report 94 C&AG’s Comments 95 Balance Sheet 96 Statement of Profit & Loss 97 Statement of Changes in Equity 98 Cash Flow Statement (Indirect Method) 100 Notes to Financial Statements 152 AOC 1 - Statement pursuant to Section 129 MECON MECON Limited CHAIRMAN’S SPEECH Dear Fellow Shareholders, great pleasure to inform you that your Company has welcome you all to the 47thAnnual General Meeting booked orders worth ₹4929.87 Crore, surpassing all its I of your Company. previous records. Before I provide update on the performance this fiscal – allow me a recap on the journey so far, from when I took over the reins of your Company in October 2016. The last few years, prior to this, had been extremely challenging for your Company, due to adverse changes in business environment and your Company had recorded a massive loss. I had taken over mid fiscal and the first order of the day was to review internal/ operational issues and strategize to curb losses, which was successfully effected when the loss was brought down to almost 50% of that recorded the previous year i.e. FY 2015-16. The next fiscal, was a watershed year for your Company, in terms of multi-sectoral growth and turning profitable, posting a Profit After Tax of `58.02 Crore after two years of consecutive losses. Subsequently, over the last three years, the Company has developed a robust three dimensional Corporate Plan for growth, based on your Company’s core competencies and the opportunities provided by The trail of achievements does not end there, as with the current business environment that has ensured immense pride, let me congratulate each one of you, sustained and profitable growth year after year. whose efforts have led your Company to record a I am proud to share that your Company has set a remarkable Profit Before Tax of ₹87.03 Crore in the FY new precedent - that of breaking its own record year 2019-20 and register Operating Profit for the first time, after year and this year is no exception. It gives me after FY 2012-13. 6 47th ANNUAL REPORT Enhanced profitability. 700.00 647.51 Maximizing the potential of our three business 600.00 479.20 verticals. 500.00 480.37 561.17 470.17 349.09 Creating a more efficient and productive 400.00 327.85 445.73 re 342.93 organization through decentralization of resources o 300.00 r 317.28 to fortify our site and engineering offices and C 200.00 assign greater profit responsibility on them. NR I 100.00 n 44.02 87.03 i Strategic planning and dedicated efforts have secured - 9.97 for your Company, a rejuvenated performance during -100.00 -77.35 the fiscal, by registering ₹647.51 Crore as Revenue from -200.00 -174.70 Operations, which is highest in last seven financial years (FY2012-13 to FY2019-20). The remarkable -300.00 2015-16 2016-17* 2017-18* 2018-19 2019-20 figure of Profit Before Tax of ₹87.03 Crore, clearly speaks about our efforts and its outcome. Revenue from Operations 327.85 349.09 480.37 479.20 647.51 Turnover 317.28 342.93 445.73 470.17 561.17 Furthermore, the Networth of the Company for PBT -174.70 -77.35 44.02 9.97 87.03 the fiscal, at ₹433.49 Crore, is highest in last ten FYs (2010-11 to 2019-20). Consequently, Board has *Restated on implementation of Ind AS proposed to pay a dividend of ₹21.67 Crore to Govt. of India for FY 2019-20. While Metals and Mining sector has remained the mainstay of your Company’s business, your Company The Earnings per Employee of the Company for the has taken concrete measures over the last few years, financial year 2019-20 has also improved by 40.54% as to develop business in the priority sectors of the compared to previous year. Government, to significantly enhance revenue and Apropos Order Booking, your Company is continuing insulate the business from cyclicity of the steel sector. in its journey of excellence, where strategic planning This year, we have focused on strategies to sustain the has garnered a 150% increase over last year’s record inroads made in diversification and build business with a stupendous ₹4929.87 Crore worth of orders resilience, particularly, in terms of re-engineering our booked across the 3 business verticals. policies and procedures for continuous improvement Your Company has been successful in procuring as set forth below: business by leveraging existing capabilities to offer Purchase and Disposal Procedure i.e. PDP-2019 services in diversified sectors i.e., - A number of changes have been incorporated in De-SOx and De-NOx through FGD projects in the new approved PDP 2019 to keep pace with the thermal power stations, changing times, the market realities and dynamics of our working environment. Zero Liquid Discharge (ZLD), Central Ambient Air Quality Monitoring Station, HR Document - which forms the basis for defining the standard manpower strength at various grades Energy Efficiency and Environmental studies has been introduced and put into effect. Your Company is proud to be associated in the Recruitment Policy has also been updated, as per following projects of National importance and Priority the long term vision of the Company.