Annual Report 2019-20 ANNUAL REPORT 2019-20 PAWAN HANS LIMITED OUR MISSION To become a market leader in Helicopters and Sea Plane services, to provide regional connectivity through Small Fixed Wing Aircrafts operations and provide repair/overhaul services at par with international standards. Annual Report 2019-20 CONTENTS l Board of Directors 4 l Management Team 5 l Notice 6 l Chairman’s Speech to the Members 8 l Board’s Report 11 l Annexures to Board’s Report 28 l Declaration Regarding Compliance with the Code of Conduct 33 l Certification/Declaration of Financial Statements by the 34 Chief Executive & Chief Finance Officer/HOD(F&A) of the Company l Management Discussion and Analysis Report 36 l Report of the Comptroller & Auditor General of India 55 l Financial Highlights 71 l Summarized Accounts 73 l Auditors Report 74 l Financial Statements 92 BOARD OF DIRECTORS Sanjeev Razdan Chairman & Managing Director Smt. Usha-Padhee Vimalendra Anand Patwardhan Joint Secretary JT. Secretary & Financial Advisor Ministry of Civil Aviation Ministry of Civil Aviation Surendar Kumar Indoria, AVSM VM Sh. Rajesh Kakkar Air Marshal PP Khandekar AVSM (Retd.) ACAS Ops (T&H) Director (Off-shore) Independent Director Air Headquarters Oil & Natural Gas Corporation Ltd. 4 5 Annual Report 2019-20 MANAGEMENT TEAM Chairman & Managing Director Shri Sanjeev Razdan Registered Office: C-14,Sector-1 Chief Vigilance Officer Ms Arti Bhatnagar, IDAS Noida UP-201301 ED (Tech/BD & MKT ) Air Cmde (Retd) Corporate Office: T.A. Dayasagar C-14, Sector-1 Noida UP-201301 General Manger (F&A) Sh Shanker Lal Goel Regional Office: Western Region Juhu Aerodrome Company Secretary & Sh Ranjit Singh Chauhan S.V. Road Joint General Manger (Legal) Vile Parle (West) Mumbai-400 056 General Manager (CPMS) Sh Sanjay Kumar Northern Region: Rohini Heliport, Sector, 36 Rohini, New Delhi-110085 HOD (Safety) Sh Vijay M Pathiyan General Manager (BD & MKT) Sh Vanrajsinh Dodiya Auditors M./s J.P. Kapur & Uberai Chartered Accountants General Manager (Engg) Sh M.S Boora New Delhi-110016 HOD (IS ) Smt Jayashree Nair Offg General Manager (Operations) Capt B.V. Baduni Branch Auditors M/s GMJ & Co (Regd) Chartered Accountants Joint General Manager (HR) Sh A.C. Poricha Mumbai- 400 069 Joint General Manger (Admin) Shri H.S. Kashyap Bankers HOD (Material) Sh Vijay M. Pathiyan Bank of Baroda Punjab National Bank HOD (Internal Audit) Sh Sourav Goel Offg General Manager Sh Sandeep Gauba (Western Region) Offg General Manager Sh Sarbjit Singh (Northern Region) 4 5 Pawan Hans Limited (A Government of India Enterprise) Regd. Office: Pawan Hans Towers, C-14, Sector-1, Noida-201301.(U.P.) CIN : U62200UP1985GOI129953 NOTICE NOTICE is hereby given that the 35th Annual General Meeting (AGM) of the Members of the Company will be held on 30th December, 2020 at 2.30 PM at Conference Room, 8th Floor, Registered & Corporate Office, Pawan Hans Ltd., C-14, Sector-1, Noida-201301 through Video Conferencing/Other Audio Visual Means to transact the following business:- ORDINARY BUSINESS Item No.1 Consideration and adoption of Audited Financial Statements along with related documents by passing the following resolution as an Ordinary Resolution:- “RESOLVED THAT the Audited Financial Statements of the Company for the financial year ended on 31.03.2020 together with the Board’s Report and the Auditors’ Report thereon and Comments of the Comptroller and Auditor General of India be and are hereby received, considered and adopted.” Item No.2 Authorisation to the Board of Directors for fixing the remuneration of the Auditors by passing the following resolution as an Ordinary Resolution:- “RESOLVED THAT pursuant to applicable provisions under the Companies Act, 2013, the Board of Directors of the Company be and is hereby authorized to determine and fix the remuneration payable to Auditors of the Company as appointed by the Comptroller and Auditors General of India for the financial year 2020-21.” The link for attending the 35th AGM is given as hereunder:- https://meet.google.com/bfr-jija-qmt BY ORDER OF THE BOARD (R.S. Chauhan) Company Secretary FCS No.- 8785 PLACE: NOIDA. Dated: 29th December, 2020 To, 1. All Members of the Company 2. Statutory Auditors 3. Secretarial Auditor 6 7 Annual Report 2019-20 NOTES: 1) In view of the prevailing Covid-19 pandemic, the Ministry of Corporate Affairs (“MCA”) has vide Circular No.20/2020 dated 05.05.2020 permitted the holding of the Annual General Meeting (“AGM”) through Video Conference (VC)/ Other Audio Visual Means (OAVM), without the physical presence of the Members at a common venue. Accordingly, AGM of the Company will be held through VC/OAVM, subject to other applicable provisions of the Companies Act, 2013 (“Act”). 2) Since the AGM will be held through VC/OAVM, there is no requirement for appointment of proxies. 3) Members attending the AGM through VC/OAVM shall be counted for the purpose of reckoning the quorum under Section 103 of the Act. INSTRUCTIONS FOR MEMBERS ATTENDING THE AGM THROUGH VIDEO CONFERENCE (VC) OR OTHER AUDIO VISUAL MEANS (OAVM) 1. For attending AGM through VC/OAVM, the link for VC/OAVM shall be shared with the members at their e-mail address available with the Company. 2. Facility of joining the AGM through VC/OAVM shall open 15 minutes before the time scheduled for the AGM. 3. Members are encouraged to join the Meeting through Laptops/iPads for better experience. 4. Members will be required to switch on the video facility and use Internet connection with a good speed to avoid any disturbance during the Meeting. 5. Please note that participants connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to fluctuations in their respective networks. It is therefore recommended to use stable Wi-Fi or LAN connection to minimize/mitigate any kind of aforesaid glitches. 6 7 CHAIRMAN’S SPEECH TO THE MEMBERS Dear Shareholders, operational fleet of 43 helicopters at present with pan India presence. Out of these four Dauphin I take great pleasure in welcoming you all to the N Helicopters having vintage of over 33 years 35th Annual General Meeting of your Company. grounded since long due to obsolescence have The Annual Report for the financial year 2019- been approved as ‘Impaired Assets’ by the 20 has been circulated and with your permission Board. This step will help in removing one of I take it as read. the qualifications in the Auditors’ Report for The revenue from operations earned by your this year and for subsequent years. Company during 2019-20 is Rs.34593.16 During the last quarter of F.Y. 2019-20, the lakhs as compared to Rs.38115.58 lakhs in the World was hit by COVID-19 Pandemic. Its previous year. In percentage terms revenue from increasing effect began to appear in India operations decreased by 9.24% as compared to during the month of March, 2020. To combat previous financial year and loss from operations this Pandemic, Government of India enforced increased from Rs.9275.56 Lakhs to Rs. 9838.16 total lock-down in the country w.e.f. 25.3.2020. Lakhs. The reasons for such loss are decrease During this period, the Company played in revenue from operations, salary revision of important role by way of rescueing stranded employees, imposition of liquidated damages, passengers, undertaking medical evacuation inability of the company to provide helicopters flights and delivering cargo to the farthest and to ONGC etc. pursuant to a Notification of inaccessible corners of the country. Number Award (NoA) issued in 2018 due to ban on of rescued passengers during this period was capital investments etc. Reserves & Surplus of 230. 271 passengers were also air-lifted by the Company stands at Rs.41305.86 lakhs (P.Y. the company’s helicopters. The Company also Rs.44622.44 lakhs). carried cargo weighing to 2878 kgs. by covering Due to losses incurred during the year 2019- a distance of 11,241 kms. The crew members of 20, Board of Directors has not recommended the company performed their duties extending any dividend for the year under review. Prior to more than one month at a stretch. to year 2018-19 Your Company was earning This Pandemic adversely impacted the global profits and paying dividend to the shareholders as well as Indian economy. Your Company’s for last six years. performance also got adversely affected due Average monthly deployment of helicopters to the Pandemic. Flying of the Company got during the year ended 31.03.2020 was 31 reduced almost to half and till now it has not helicopters out of the fleet size of 43 helicopters. reached pre-Covid-19 level. Your Company The total flying hours in 2019-20 got reduced has taken various austerity measures to reduce to 19456 hours as against 21,108 hours during the adverse impact caused by the Pandemic the previous year due to various reasons i.e. e.g. rationalization of costs including salary & shortage of pilots, grounding of helicopters, etc. allowances of employees, shore up recovery of past dues, surrendering surplus lease land to Pawan Hans continues to be one of Asia’s largest AAI, centralisation of departments etc. helicopter operators having a well-balanced own 8 9 Annual Report 2019-20 The Company’s philosophy on Corporate of MoU through the administrative ministry for Governance reflects the ethos of the Company the year 2018-19 and 2019-20. Exemption for and its continuous commitment to ethical 2021-22 will also be sought in this regard. business principles across its operations. Sustaining a culture of integrity along with The following significant Events/Developments high performance orientation and an adaptive have taken place during the year:- management style in today’s dynamic business i) Non Scheduled Operator Permit (NSOP) environment needs a robust governance of your Company has been renewed for a structure.