2018-1946th ANNUAL REPORT
MECON LIMITED
MECON
MECON LIMTED(A Govt. of India Enterprise)
MECON YEARS OF
CELEBRATINGTHE MAHATMA
Head O�ceVivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India
CIN No. - U74140JH1973GOI001199www.meconlimited.co.in
For Enquiry Contact
Major O�ces
Joint General Manager (Marketing)Phone : +91-651-2483136/2481440, Fax : +91-651-2482214/ 2482189
E-mail: [email protected]
City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 [email protected] Delhi +91-11-22041872 +91-11-22041214 [email protected] Mumbai +91-22-27812155-58 +91-22-27812275 [email protected] +91-33-22822381-82 +91-33-22824441 [email protected]
Find us on : @MECONLimited /@meconranchi meconranchi
396_1019_ Annapurna Press & Process 0651-2331800, [email protected]
CMD MECON Shri Atul Bhatt, welcoming Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel
Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, being briefed about various projects of MECON during her visit to technical sections of MECON
Shri Yogendra Paswan, member of National Commission for Scheduled Caste (NCSC) during his visit to MECON
Under the aegis of Ministry of Steel, MECON participated in METEC 2019 at Dusseldorf, Germany, to showcase India’s Steel Growth story at Indian Steel Pavilion.
Shri Atul Bhatt, CMD MECON, addressing the gathering at India Steel 2019, 4th International Exhibition & Conference on Steel Sector, at Mumbai.
MECON was awarded 1st prize in the16th National Award on Excellence in Cost Management 2018, category- Consulting & others, by the Institute of Cost Accountants of India
MECON received 1st CSR Honourable Mention 2019- Excellence in CSR in Challenging Circumstances from Ministry of Corporate Affairs in presence of Hon'ble President of India and other dignitaries for
implementation of Solar water pumping system in adopted village, Pancha
Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, along with Shri Atul Bhatt, CMD MECON, Shri PK Sarangi, Director (Technical), Shri Goutam Chatterjee, Director (Commercial), Shri Salil Kumar, Director (Projects) and Shri RH Juneja,
Director (Finance) during Review meeting of MECON, at Ranchi
GLIMPSES OF CSR ACTIVITIES
Health Camp at Adopted Village - Sungi, Karra, District - RanchiAnnual Examination of Stitching Training Centres
Swacchta Abhiyan at Adopted Village - Pancha, Bundu, District - Ranchi
Painting Competition (Swacchta Abhiyan) for the School Children of Adopted Village - Sungi, Karra, District - Khunti
Foundation Laying of Boys Hostel Building at Orphanage (Anmol Basera), Village - Sungi, Karra, District - Khunti
Cataract Surgery of Villagers of Mecon's Adopted Village at Ispat Hospital, Shyamali
CORPORATE VISIONTo be an internationally recognized brand in design, engineering,
consultancy, project management and EPC execution.
CORPORATE MISSION• To be a global centre of excellence for providing innovative and cost–
effectiveengineeringandtechnologicalsolutionsinMetals&MiningaswellasdiversifiedsectorslikeEnergy,Infrastructure,Space,Defenceetc.
• Leveragedeepdomainknowledge in themetals andmining sectors toprovidesolutionsfromconcepttocommissioning.
• Leveragein-housecapabilitiestoprovideengineering,technologicalandprojectmanagementservicestoprioritysectorsofeconomy.
• Developindigenoustechnologicalbaseandpromoteselfreliance.
• Expandgeo-strategicpresenceandexportofservices.
Shri P. K. Sarangi Director(Technical)
Shri Goutam Chatterjee Director(Commercial)
Shri Salil Kumar Director(Projects)
Shri R. H. Juneja Director(Finance) w.e.f.20.04.2018
Shri Saraswati Prasad, IAS GovernmentDirector
Smt. Rasika Chaube GovernmentDirector
Shri Sisir Kumar Appikatla IndependentDirector
Shri Deepak Krishan IndependentDirector
w.e.f.23.01.2019
LEADERSHIP AT MECON
As on the date of AGMShri Atul Bhatt ChairmanandManagingDirector
CORPORATE INFORMATION
BANKERS
StateBankofIndia UnionBankofIndia IndianOverseasBank BankofBaroda UnitedBankofIndia YESBank AndhraBank HDFCBank CanaraBank AxisBank ICICIBank IndusIndBank
COMPANY SECRETARY
ShriRaviBambha
STATUTORY AUDITOR
M/sV.Rohatgi&Company CharteredAccountants, 1stFloor,SarjanaBuilding,1,MainRoad, Ranchi–834001(Jharkhand)
FINANCE INCHARGE
ShriS.Samanta
REGISTERED OFFICE
VivekanandPath,Doranda Ranchi-834002 Jharkhand INDIA
CORPORATE IDENTIFICATON NUMBER
U74140JH1973GOI001199
WEBSITE
www.meconlimited.co.in
MECON is India’s frontline Design, Engineering & Consultancy, Project Management Consultancy and Contracting organization under Ministry of Steel, Govt. of India, rendering services required for setting-up of projects from Concept to Commissioning in the areas of Metals & Mining, Energy, Infrastructure and other Strategic sectors.
With strong workforce of over 1050 experienced & dedicated engineers, scientists and technologists, having network of offices spread all over the country and extensive capabilities in handling Consultancy and EPC projects, MECON is one of the biggest Consultancy & Contracting organization in the world. Our multi-skilled expertise in 35 technical disciplines creates the synergy vital for realizing projects in Time, Cost and Quality.
We have successfully completed over 3,500 consultancy and EPC assignments in India and abroad covering wide range of areas and services. We are an ISO 9001:2015 Company and have strategic technological partnerships with leading International organizations.
METALS
ENERGY
INFRASTRUCTURE
MECON - SUCCESS STORY
135+Assignments completed worldwide
110+EPC
projects executed
150+
300+EIA / EMP Reports
since 1990.
50+Years
of presence 16
Sectors
NABET accreditation
MAJORACHIEVEMENTS
53Total
Patents
Publications
CONTENTS
6 Chairman’sSpeech
9 BoardReport
26 MGT9-ExtractofAnnualReturn
33 AOC2-StatementpursuanttoSection134
34 CSR&Sustainability
52 TechnologyAbsorption
53 (MDAR)ManagementDiscussion&AnalysisReport
60 CorporateGovernance
65 IndependentAuditors’Report
75 C&AG’sComments
76 BalanceSheet
77 StatementofProfit&Loss
78 StatementofchangesinEquity
79 CashFlowStatement(IndirectMethod)
81 NotestoFinancialStatements
132 AOC1-StatementpursuanttoSection129
CHAIRMAN’S SPEECH
Dear Fellow Shareholders,
Itismypleasuretowelcomeyoualltothe46thAnnualGeneralMeetingofyourCompany.
The 2018-19 has been a year of building on theachievementsofthelastfiscalandscalingnewheights,whilst remaining profitable. It gives me immensepleasuretoinformyouthatyourCompanyhasmadegiantstrides inachievingOrderBookingof₹3191.75Crore, breaking all records and more than doublingourpreviousrecordof₹1418.65CroreinFY2016-17.This continual development and progress has largelybeenduetothecommitmentofTeamMECON,supportandencouragementfromallourstakeholdersandtheforesightandjudiciousplanningofyourManagement,in putting into place, a resilient Corporate Plan with business strategy, based on its core competencies and diversificationpolicytode-riskbusinessfromcyclicityofSteelsector.Our business strategy, in a nutshell, focuses on a 3prongedapproachforgrowth:
First, Strengthen the Core & Strategic sectors; Tothisendweseektocreatefurthervaluebydevelopingtheopportunities embedded in our existing operations and moveupthevaluechainforofferingend-to-endEPCservices.Second, Expand the horizon in Diversified sectors; To develop our portfolio,we intend to look beyondourcorebusinessforothergrowthopportunitiesbasedonprioritysectorsoftheGoI.Finally Third, expand Geographical reach; To gain access to International markets and seek newopportunitiestofuelCompany’sfuturegrowth.This strategy and our performance this fiscal furtheremboldens our aspiration of growing into a ₹1500CroreCompanyoveraperiodoffiveyears.To summarize, 2018-19 has been a year of goodprogressforourcompany.Wehaveemergedstrongerwitharestructuredorganizationthatpositionsuswellto continue executing our strategy over the comingyears.Physical and Financial Performance YourCompany’swell-plannedbusinessinitiativesandstrongCorporateStrategyhavedeliveredareasonableperformance and we are optimistic about enhancingthe growth ratewith our carefully prepared businessstrategies. YourCompanyhas registered aTurnover of₹470.17 Crore this FY as against₹445.72 Crore the previousyearandhasearnedaProfitAfterTaxof₹13.74 Crore. TheEarnings per Employee of the Company for thefinancialyear2018-19hasalsoimprovedby17.90% as comparedtopreviousyear.YourCompanyhassustaineditsgrowthinthedomesticmarket and has taken steps to enhance presence invarious overseasmarkets.The perseverance to adaptnew technologies has redefined perception of yourCompany,whichisnowseentobeaTransformationalConsultant, bringing-in new technologies, designs,process know-how as well as new standards inautomationandsafetyintheIron&SteelIndustry.YourCompany’scontinuedbusinessstrategytoexpandhorizonindiversifiedsectorshasyieldedrichdividendsand the ₹3191.75 Crore Order Booked across the 3businessverticalsthisfiscal,hassetanewbenchmarkforus,overshadowingallpreviousrecords.Thepatronage andmassive repeatbusiness that yourCompanyhasreceivedfromsomeofitsmajorclients,bears testimony to the success of your Company’sresolve to cater to the varied needs of the customer,
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through prompt response and quality deliverables,across the range of our capabilities. Salient projectsbaggedinclude:
� Assignments from UCIL for Development ofseveral Uranium Projects from Concept toCommissioning aswell as Expansion of existingUranium projects. In addition, UCIL have alsoentrusted your company to carry out Centralized ProcurementofSpares,ConsumablesandservicesfortheirexistingMinesandPlants.
� AssignmentsfromISRO
¾ EPC service for Integrated Engine TestingFacilityofIPRC–SemiCryoengineforISRO,Mahendragiri.
¾ ConsultancyservicesforRevolvingDomefor2.5mdiaTelescopeforISROatMountAbu.
¾ PMC services for Payload Fabrication &TestingFacilityforISROatBopal,Ahemdabad.
¾ Consultancy services for Solid PropellantSpaceBoosterPlant(SPROB),AugmentationFacilitiesforISRO,Sriharikota.
Contribution in Priority Sectors of GoIThisyearyourCompanycompletes60illustriousyearsof contributing to the socio-economic growth of thecountry.WehavesecuredaplethoraofjobsinthefieldsofMetals, Energy and Infrastructurewhich illustrateyourCompany’stechnicalexpertiseindiversifiedfields.InthequestforgrowthyourCompanyhasaligneditsbusiness strategy to focus on themajor initiatives oftheGoIandsomeofthemajorprojectsbeingexecutedundertheseinitiativesinclude:
� Make in India: Continuinginitsendeavortowardsthisnationalmission,yourCompany
¾ conceptualized the idea of ‘Indigenization of Capital Goods & Spares in Iron & Steel industry’ and as Knowledge Partner , under the aegis of Ministry of Steel, organized aconclave on “Capital goods for Steel Sector:Manufacture in India” at Bhubaneswar,Odisha.During the conclave 38MoUsweresigned among steel producers, equipmentmanufacturers and foreign steel technologysuppliers, which is expected to drive theindigenization of capital goods& spares forminimizingImportBillofthecountry.
¾ Your Company, as an active member ofStandingCommittee&GrievanceCommitteeonDomesticallyManufacturedIronandSteelProducts (DMI&SP) Policy, is contributingin implementation of the policy forprovidingpreference to ‘Make in India’over
imported Iron & Steel.Within two years ofits implementation, the country has savedaroundINR8,000Crorebyincreasingimportsubstitution through augmented usage ofdomesticallymanufacturedsteel.
� Urja Ganga: The “Energy Highway (UrjaGanga)” of Eastern India a major step of GoI,towards collective growth and development ofthe Eastern region of India. Your Company isproviding Engineering and ProjectManagementConsultancy services for approximately 2900kmNatural Gas (NG) Pipeline projects and India’sFirstIntegratedLNGSatelliteStationforGAIL.
� Bharatnet: A project of national importanceenvisionedbyGoItodigitallyconnectalltheGramPanchayats and Villages of India consequentlyachievingthegoalofDigitalIndia.Yourcompanyis providing Project Management Consultancyservices for the BharatNet Phase – II Projectin Jharkhand for Jharkhand CommunicationsNetwork Limited, GoJ in 11 Districts and 1684GramPanchayats.
� Railway Station Redevelopment: ConceivedbytheHon’blePrimeMinister, thisproject is forthe redevelopmentof 400 stations toworld classstations that deploy state of the art sustainabletechnologies.IndianRailwayStationsDevelopmentCorporationhasawardedyourCompanyprojectsfor providing Design, Engineering, ConsultancyandPMCservicesforeight(8)stations:Andheri,Bokaro Steel City, Lokmanya Tilak, BandraTerminus,Lonavala,Ranchi,AjmerandChennaiEgmore.
Environment ManagementWith understanding of its responsibility towards theenvironmentandsociety,yourCompanyalsofocuseson other tangibles like, value addition in terms ofimproved efficiency and environmental protectionetc.Atatimeofchallengesposedbychangingclimate,yourcompanyhasendeavoredtoadaptandrethinktheenergy efficiency, safety, resource conservation, zerodischargeandwaste controlmeasures, for existingaswellasfutureprojectsassignedtoit.Your Company has been retained as EnvironmentalConsultant for challenging environmental projects ofvariousclients.Significantenvironmentalengineeringprojectscarriedoutduringtheyearinclude:
� Hexavalent Chromium Remediation Project ofOMCSouthKaliaPaniinOdisha-forprovidingProjectManagementandConsultancyservicesforremediationof hexavalent chromium frommine
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MECON Limited
dischargeeffluent.
� Environmental Impact Assessment (EIA),Environmental Clearance (EC) & CoastalRegulatoryZone(CRZ)clearancefromMOEFCCfor“AwayfromReactor(AFR),spentfuelstoragefacility” at Kudankulam, Tamilnadu for NuclearPowerCorporationofIndiaLimited.
Human Resource MECON’s commitment to its dream of becomingan organization par excellence, demands company’sattentiontocontinuousexpansionoftheskillssetofitsemployees, throughcontinuous investmentbywayofparticipation inNational and InternationalTechnicalseminars,Specializedtechnicaltrainingsandin-houseMentoringprograms,etc.Additionally, your company has provided apropostrainingtoanappreciablenumberofmiddleandseniorlevel executives, through state-of-the-art programs,including those offered by ‘Centre of Excellence’institutesthroughDPE.Corporate Social ResponsibilityYour company, as a responsible Public Sectorentity, has been shouldering its Corporate SocialResponsibility(CSR)withthesamecommitmentandprideasprovidingtechnologicalservicestothenation.Yourcompanyhasbeencarryingoutactivitiesforthedevelopment&welfareofunderprivilegedsectionsofthesociety, inslumandbackwardareas, in&aroundRanchi as well as Naxal affected adopted villages ofRanchiandKhuntidistricts,whichareamongtheGoIidentifiedAspirationaldistrictsofJharkhand.DuringFY2018-19,yourcompany,inadditiontotheperennial CSR programs for women empowermentand education, has extensively worked towards theGovernment’s Annual theme of Education & HealthCare. Out of many impactful CSR projects, one of the
special projects carried out was in past, the “SolarPhotovoltaicbasedDrinkingWaterSystem”atPancha,Ranchi(Jharkhand)forprovidingsafedrinkingwatertotheunderprivilegedsectionsofthesociety,throughusage of clean and renewable source of energy. Asa recognition of this effort, your company has beenselected to receive Honourable Mention under theNationalCSRAwards2018,inthecategory-CorporateAwards in CSR in Challenging Circumstance, sub-category-EastbyMinistryofCorporateAffairs,GoI.Steps towards Good Governance Your Company’s Corporate Governance principleis based on imbibing best practices with emphasison integrity, honesty and ensuring transparency,accountability, compliance of all statutory andregulatory requirements and adhering to integrity inbusinessethics.Likethepastyears,thisyearalsoyourCompanyscored‘Excellent’ rating in compliance to Guidelines onCorporateGovernanceissuedbyGovernmentofIndiawhichmaintainsour recordofExcellent ratingeveryyear since inception. AcknowledgementIacknowledgethatallachievementshavebeenpossibleonly due to persistent and dedicated efforts made by the employees of the Company, who have alwayscontributedtheirbestfortheCompany.I am also grateful for the capable guidance of mycolleagues on the Board, gratitude for their prudentcounsel and continued guidance. I gratefully acknowledge the support extended tous byGoI,Ministry of Steel and thank them for theconfidenceandtrustbestowedupontheCompanyandthe opportunities given for growth. Your continuedsupport, trust and encouragement, is what gives usconfidenceandmotivationtostriveforexcellence.Thank you & Jai Hind!
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BOARD REPORT DearMembers,
YourDirectorshavethepleasureinpresenting46th AnnualReportontheoperationsoftheCompany
andtheStatementsofAccountsfortheFinancialYearendedon31stMarch,2019.
TheReportoftheStatutoryAuditorsandtheCommentsontheAccountsof theCompanybytheComptrollerandAuditorGeneralofIndia(C&AG)areannexedtothisReport.
1.0 PERFORMANCE HIGHLIGHTS
Thefinancialyear2018-19settlesdownonsatisfactorynote for MECON as the company maintained theprofitable trail though modest, while registeringimprovedturnoverandhasshowcasedanencouragingbusinessprocurementscorecard.Oil&GasandMiningSectorshaveemergedasflagrunnersofthecompany’sbusinessportfolioclearlyshowingthediversifiedareasoffuturebusinessroadmapinadditiontoputtingfirmfoot forward inmetalsbyconsolidatingour in-housestrengthandreinforcingwithappropriatepartnershipswith technology know-how leaders to break newgrounds as well as to stay on the cutting edge oftechnologyincoresector.
So, needless to say that imperatives like recovery ofsticky dues and more committed performance onprojects under execution would have to be pursuedrigorouslytoimprovethebottomlines.
Major prestigious projects of national importancecompleted/underprogressduringtheyearinclude:
Metals Sector
� DetailedEngineering&Consultancyservices for7.0 Mtpa Expansion Plan of SAIL/Bhilai Steel Plant havebeenprovidedby your company andfollowingarethemajorachievements:
¾ PerformanceGuaranteecertificate issued forCokeOvenBatteryNo.-9,BSPBhilai.
� Detailed Engineering & Consultancy servicesfor 4.2 Mtpa Expansion Project of SAIL/Rourkela Steel Plant andfollowingarethemajorachievements:
¾ PerformanceGuaranteecertificate issued forCokeOvenBatteryNo.-6,RSPRourkelawithComputerizedOvenHeatingControlSystem(Level-2automation).
¾ FACforTorpedoLadleRepairshophasbeenissued.
¾ FACforCoalHandlingPlanthasbeenissued.
¾ Commissioning of Propane plant has beencompleted.
� DetailedEngineering&Consultancyservices for5.7MtpaExpansionProjectofSAIL/Bokaro Steel Plant andfollowingarethemajorachievements:
¾ Commissioning certificate issued for WetQuenchingSystemofCOB-7&8,BSLBokaro.
� SAIL/Durgapur Steel Plant had entrusted yourcompany for carrying out Extended Category-IICapitalRepairsofBlastFurnace#4onEPCbasis.BFblowing-inhasbeensuccessfullydone.
� Detailed Engineering & Consultancy includingProject Management Consultancy services for2.5Mtpa New Stream Expansion Plan of SAIL/
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IISCO Steel Plant, Burnpurhavebeenprovidedby your company and following are the majorachievements:
¾ SecondaryRefiningunitshavebeencommissioned.
¾ Performance Guarantee Test of ContinuousCasting Plant was successfully conducted &PGcertificatehasbeenissued.
¾ IntegratedOperationof2.5MtpaNewStreamExpansionProjecthasbeen issuedbyISPtoMECON.
¾ Performance Guarantee Test of Hot MetalDesulfurization Plant was successfullycompleted&PGcertificatehasbeenissued.
¾ Performance Guarantee Test of ReheatingFurnace of Universal SectionMill has beencompletedandPGcertificatehasbeenissued.
¾ Final Acceptance Certificate of Coke OvenBattery#11 & Blast Furnace Complex havebeen issued.
¾ PerformanceGuaranteeofIPPLwithmixingstation,PlantwideNetworking&ByproductPlanthavebeencompleted.
� Detailed Engineering & Consultancy services
including Project Management Consultancyservicesarebeingprovidedbyyourcompanyforsetting up of 3.0 Mtpa Integrated Steel Plant ofNMDC Limited at Nagarnar. The project is under execution.
¾ ElectricalpowerfromGridhasbeenchargedto Main Receiving Station (MRS) afterconducting Preliminary Acceptance Tests(PAT) and forOxygen Plant, PAC has beenissued.
¾ Successful Charging and Energisation of 10nos.33/6.6kVLBDSfortransmissionofpowertovariousshops/unitsintheentiresteelplantNISP,Nagarnarhasbeencompleted.
¾ Engineering of the major technologicalpackageslikeRawMaterialHandlingSystem(RMHS), Sinter Plant, Blast Furnace, SteelMaking Shop (SMS), Hot Strip Mill &Thin Slab Caster (HSM & TSC) have beencompleted.
¾ CoalrouteunitofRMHS,CokeOvenBatteryNo. 1, Sinter Plant, Blast Furnace, OxygenPlant, readiness for Hydro Test of Boiler-1of Power Plant, Pipe laying forWater fromIndrāvati river, LPG forCokeOven heatingand interplant pipeline for Nitrogen, Steam&CompressedAir are in advanced stage ofexecution.
¾ Load Trial run of wagon tippler has beenconductedsuccessfully.
� JSW Steel Limited, Vijaynagar Works hasentrusted your Company for providing Design,Engineering&ConsultancyservicesforRebuilding& Capacity Enhancement of their Blast Furnace#3(4,019m3UsefulVolume)tobecomecountry’slargest Blast Furnace (5,339m3 Useful Volume).The project is under execution.
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� VISA Steel Limited, Jajpur, had entrusted yourCompany for providing Design, Engineering& Consultancy services for Technological Up-gradationoftheirMiniBlastFurnace.Allthejobshave been completed on schedule and the BlastFurnaceisreadyforcommissioning.
� KIC Metaliks Limited, Durgapur has entrustedyourCompanyforprovidingDesign,Engineering&Consultancy services for augmentation of hotmetalproductionbyintroducingPulverizedCoalInjection System, Waste Heat Recovery System(in Hot Blast Stoves) and Oxygen EnrichmentfacilitiesforColdBlastintheirexistingMiniBlastFurnace.Theprojectisunderexecution.
� JSW Steel Limited, Dolvi Works has entrustedyourCompanyforprovidingDesign,Engineering& Consultancy services for installation of theirNew Pellet Plant # 2 (816 m2) which will bethe largest in the country. The project is underexecution.
� JSW Steel Limited, Vijayanagar Works has
entrusted your Company for providing Design,Engineering & Consultancy services forinstallationoftheirNewPelletPlant#2(816m2)whichwillbethelargestinthecountry.Theprojectis under execution.
� JSW Steel has entrusted your company forproviding consultancy & detail engineeringservicestoimplementindependentSGPforBlastFurnace#1.Theprojectisunderexecution.
Non Ferrous Sector � Birla Copper Ltd. (Aditya Birla group) has
awarded your company the assignment forDetailed Study and preparation of FeasibilityReport for its Phase – 2Upgradation ofCopperSmelter and Sulphuric Acid Plant-1 at Dahej,Gujarat.The Final report has been submitted toclient.
� Birla Copper Ltd. (Aditya Birla group) hasentrusted your company for the preparation ofFeasibility Report for its proposed greenfieldexpansion of 5.0 LTPA Copper Smelter andRefinery Plant at Dahej, Gujarat. The Report isunder preparation.
� Industrial Promotion and Investment Corporation Ltd. (IPICOL), Odisha hadentrusted MECON with the identification andfinalizationofAluminiumDownstreamProductsfortheirbusinesspromotioninOdisha.TheFinalReporthasbeensubmittedtoClient.
� Industrial Promotion and Investment Corporation Ltd. (IPICOL), Odisha hadentrusted MECON for the land assessment forAditya Birla’s Aluminium Smelter and CaptivePower Plant complex at Lapanga, Odisha. Thereport is under preparation.
� Mishra Dhatu Nigam Ltd. (MIDHANI), Hyderabad has entrusted your company for thepreparationofDPRforHi-EndAluminiumAlloyFlat Rolled Products Plant at Andhra Pradeshto meet the specific requirements of defence,automotive as well as other special applications.TheFinalDPRhas been submitted to client.TheprojectistobesetupinJointVenturewithPublicSector NALCO. The DPR has been cleared byNitiAayogforsettinguptheproposedprojectatNellore,AP.
� MECONiscarryingouttheDetailedEngineeringand consultancy Services for setting up anAluminium Alloy Wire Rod Plant at Angul forNALCO. The project is under execution.
� Adani Group hadassignedMECONtocarryoutaBankableFeasibilityReportfortheirproposed5
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LTPACopperProjecttobesetupatAdaniPortsandSpecialEconomicZoneLtd.(APSEZ),Gujarat,basedonimportedconcentrate.TheFinalReporthasbeensubmittedtoClient.
Power Sector
� Maharashtra State Power Generation Co. LimitedhasentrustedyourcompanyforcarryingouttheThirdPartyDelayAnalysisofBTG&BOPWorksofKhaperkhedaProject(1x500MW).Theprojecthassuccessfullybeencompleted.
� Bokaro Power Supply Company Limited hasentrusted your company for preparation ofTechno-Commercial Due Diligence report forMajorRepairofBoiler#1(capacity220TPH)witha schedule of 4 months. The project has beensuccessfullycompleted.
� Damodar Valley Corporationhasentrustedyourcompany for carrying out RLA and Up ratingStudy forPreparationofDPR forPanchetHydelStationUnit-1ofCapacity40MW.Theprojecthasbeensuccessfullycompleted.
� NTPC SAIL Power Company Limited hasentrusted your company for carrying out theTechnicalAuditofCokeOvenGasPipeSystemofPowerPlantBoileratNSPCL,Bhilai.Theprojecthasbeensuccessfullycompleted.
� Commissioningof100kWpHybridsolarPVplantfor Jharkhand MSME tool room, Ranchi hasbeensuccessfullycompleted.
� Commissioning of 11kV LBDS for providingauxiliarypowertoTurbo-blower-5inCPPofVSP, Vizaghasbeensuccessfullycompleted.
� Project monitoring & supervision of quality ofwork under RGGVY project of MPMKVVCL,Bhopal for five districts covering Betul, Datia,Harda, Bhind, Moren, Raisen,Vidisha under12th plan for MPMKVVCL, Bhopal has beensuccessfullycompleted.
� 100% electrification in Dhanbad, Bokaro,Ranchi, Ramgarh & Lohardaga Districts hasbeen successfully completed. 100% House Holdconnections given under SAUBHAGYA Schemein entire Jharkhand for JBVNL under DDUGJY scheme.
Oil & Gas Sector
� GAIL India Limited (GAIL)has entrustedyourcompany for Project Management Consultancy(PMC) for Cross Country Natural Gas PipelineProjectfromPhulpur(UttarPradesh)viaVaranasi,Dobhi(GayaBihar),Rajgir(SilaoBihar)toPatna/Barauni(Bihar).
The target for Gas from Phulpur to Varanasi,Dobhi (Gaya Bihar) to Patna (Bihar) has beensuccessfullycompleted.
� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering&ProjectManagementConsultancy(EPMC)forsettingupPetroleumoil&lubricants(HSD, MS,SKO & Ethanol) depot of capacity29,000KLatMeerut,UttarPradesh.Theprojectisunder execution.
� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering&ProjectManagementConsultancy(EPMC) services for settingupPetroleum,oil&lubricantsdepotof capacity77,000KLatHissar,Haryana. The project is under execution.
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� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering Consultancy services for EmissionControls System (VRU) at Jaipur, Palanpur,Wadala, Loni, Kolkata (Budge Budge), Chennai,Irumpanam & Vashi terminals. The project isunder execution.
� OIL India Limited, Assam has awarded yourcompany for Engineering, Procurement, andConstructionManagementConsultancy(EPCM)forconstructionofGaspipelinefromBaghjantoCGGSMadhuban,Duliajan,inAssam.Theprojectis under execution.
� IGL awarded 3 number CNG stations withEquipmentonRCCCanopyconcepttoeconomizethe space requirement of CNG station and toreduce the noise pollution etc. The Project hasbeendeliveredbeforetimewithfullsatisfactionoftheclient.
� India’sfirstL-CNGSatelliteStationcommissionedatBhubaneswarforGAIL (India) Limited.
Infrastructure Sector
� Your company is rendering Consultancy and ProjectManagementServicesforinterconnectionof Iron Ore Handling Plant (IOHP) with theMechanizedCoalHandlingPlant(MCHP)usingnetwork of conveyors and a customized stackermachine at Paradip Port, Paradip, Odisha. Theproject is under execution.
� Ordnance Factory Board, Ministry of Defense had entrusted your company for providingconsultancyservices formodernizationofCODsatAgra&Jabalpur.Theproject isunderadvancestageofcompletion.
� Yourcompanyalongwithitsconsortiumpartner(M/s RHDHV) has been appointed as a DesignConsultantbyIndianNavyforapartofphasewiseexpansion(PhaseIIA)oftheirexistingNavalbaseat Karwar (Karnataka) under “Project Seabird”.The project is under execution.
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MECON
MECON Limited
Your Company is serving a large number of clientsin thePublic andPrivate Sectors. Someof themajorclients inPublicSector includeSAIL,GAIL,NMDC,ESIC, NSPCL, JBVNL, MAHAGENCO, Ministry ofAYUSH,ISRO,HAL,MRPL,HEC,BARC,HINCOL,APMDCL, NINL, RINL/VSP, KIOCL, HCL, NML,RINMOIL, SAILMOIL, MIDHANI, CorporationBank,BEL,GoJ,RPTPL,PFC,HPCL,BPCL,OPTCL,UPPCL, UPRVUNL, TANGEDCO, OMDC, OMCL,MRPL,TVNL,FCRI,IPICOL,NALCO,BPSCL,NLC,NSPCL, NPCIL, WBSEB, WBPDCL, WBSEDCL,BESCOM,OHPC,CMWSSB,UCIL, BGL,APPGCL,IOCL,HPGCL,ONGC,CPCB,KPCL,VPT,KPT,PPT,GGL,IGL,BGL,TNGCL,DVC,MSTC,NHPC,NMPT,IDCOL,IREL,BARC,SBIbesidesMinistryofPower,Govt.ofIndia,theStateElectricityBoardsinJharkhand,West Bengal, Madhya Pradesh, Chhattisgarh,Rajasthan, Tamil Nadu, Uttaranchal, Uttar Pradesh,Odisha. Jindal Group, Bhushan Group, Tata Group,UML,ESSAR,ESSEL,KICMETALIKS,AXISBANK,UML,ULTRATECH,MONNET,BMM,UGSL,MEL,BRPL, VEDANTA, ADHUNIK, HINDALCO, TML,BIL,MNGL,TOPWORTH,ADANI,MSPL,IIL,SLR,etc.aresomeofthemajorclientsintheprivatesector.
Inadditiontoabove,someofthemajorclientstowhomyourcompanyhasbeenrenderingservicesduringthisyear include Project Seabird, CCL, OMC, PFCCL,LANCO, HPCL, SHAR, Oil India, OPTCL, AssamState Housing Board, IOCL, HPCL, BPCL, NALCO,NLC, ECL,UCIL,NPCIL, JSW, PetronetMHB, KICMetaliks, JSPL, Brila Copper, Electrosteel, etc. TheCompanyisalsoprovidingservicestoDefenceSector.
Business procurement in the area of EngineeringConsultancy& PMC services was ₹ 533.27 Crore inpreviousyearand₹359.63Croreduringthisfinancialyear.InSupply/Turnkeyprojectsitwas₹470.17Croreinpreviousyearand₹2832.12Croreduringthisyear.
INDIAN ARMY
ETA - ZUMA GROUP
AN ISO 9001:2008ISPS COMPLIANT PORT
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MECON
2.0 BUSINESS DIVERSIFICATION
Diversification is anongoingphenomena inbusinessplanning of any vibrant business organization and atMECONtoo,itispursuedearnestlyinfaceoftechnicalchallenges it comes across every day. Our strategicdiversificationhasattainedmaturityasourOil&Gasbusinesshasmadeinternationaldebutwithexecutingoil pipe line project in Bangladesh. We have beenmakingforayintostrategicminingandprocessingareaslikeUraniumminingandprocessingthereofforclientslikeUCIL.Wehave also foundnewbusiness inPortandmaterialhandlingarea,FlueGasdesulphurizationinThermalPowerPlant, fire and safetymanagementand Energy Efficiency areaswhich is bound to growwithgrowing concern forEnvironment and safety insocietyandGovernment.
During this fiscal year, business procurement fromtheMetal sectorhasbeen significantwhich is clearlyreflected in overall order booking in Metal sector(94.48%)outweighingtheorderbookinginNon-Metalsector (5.52%). In Engineering and Consultancy, theCompany’sorderbookingis49%(previousyear61.75%)inNon-Metalsectorsand51%(previousyear38.25%)inMetalsector.Incaseofsupply/turnkeyprojects,itis0%(previousyear99.49%)inthediversifiedsectorsand100%(previousyear0.51%)inMetalsector.
0
100
200
300
400
500
2014-15 2015-16 2016-17 2017-18 2018-19
in `
cro
re
Business Procured (Consultancy)Metal Non-Metal
0
500
1000
1500
2000
2500
3000
2014-15 2015-16 2016-17 2017-18 2018-19
Business Procured (Supply)Metal Non-Metal
in `
cro
re
51%
20%
29%
SBU wise Business Procured (Consultancy)
Metal Energy Infastructure
3.0 MANAGEMENT INITIATIVES
Managementiscontinuingits focusonstrengtheningthe potentially high growth areas by deployingadditional resources and widening the globaloutreach of the company through participation ofemployeesininternationaltechnicalandtradeevents.Concerted efforts are beingmade for supplementingthe knowledge/ technology gaps throughMoUswithglobal leaders in respective fields and squeezing outopportunities trickling from the traditional businessareas.
4.0 MOU WITH MINISTRY OF STEEL ON PERFORMANCE
Likeinthepreviousyears,yourCompanyhassignedaMoUwiththeMinistryofSteelfortheF.Y.2018-19andisexpectedtoachieve“Fair”rating.
5.0 ISO 9001:2015 CERTIFICATION
Recently, your Company has successfully migratedto ISO 9001:2015 Standards from ISO 9001:2008standards.ThecertificatehasbeenawardedbyM/sTÜVNORD.ThescopeofCompany’scertificationincludesConsultancy, Design & Engineering, Procurementof Plant & Equipment, Inspection, Construction &ProjectManagementServicesandErectionofTurnkeyProjects. The surveillance audit by TÜV has beenconducted during November – December 2018 andCompany’sQMShasbeencertifiedforISO9001:2015andvalidatedupto29.01.2021.
6.0 INDIAN ASSIGNMENTS
Your company has procured following major workordersduring2018-19:
Metals Sector
� ExecutingAgency forDevelopmentofMosabaniUraniumRecoveryPlant(MURP)&Developmentof Rohil Uranium Project for Uranium Corporation of India Ltd., Jaduguda.
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MECON
MECON Limited
� CentralisedProcurementservicesforprocurementof spares, consumables and services for existingMines and Plants of Uranium Corporation of India Ltd., Jaduguda.
� Detailed Engineering & Consultancy servicesforenhancementofSteelPlantCapacity from13Mtpato18MtpaforJSWVijayanagarWorksforJSW Steel Ltd., Mumbai.
� DeploymentofManpoweragainsttherequirementofNALCOinConstruction,CommissioningandOperation of Existing, Brownfield, GreenfieldProjects of National Aluminium Co. Ltd., Bhubaneswar.
� DetailedEngineering&Consultancyservices for30MtpaIronOreSlurryPipeline,OdishaProjectforJSW Steel Ltd., Mumbai.
� Amendment to Contract for providingEngineering, Procurement and Construction (EPC) services for Establishment of Structural&Mechanical Systems of IntegratedEngineTestFacility for ISRO Propulsion Complex (IPRC), Mahendragiri, Tamil Nadu.
� DetailedEngineering&Consultancyservices forHeatSizeEnhancementfrom130MTto160MTofSMS#1atJSWSteelVijayanagarWorksforJSW Steel Ltd., Mumbai.
� ConsultancyservicesforimplementationofZeroLiquidDischarge (ZLD) atSAIL/Rourkela Steel Plant, Rourkela.
� Engineering, Procurement and Construction (EPC) services forManufacture, Testing, Supply,Installation&Commissioning of Bowl CleaningMachine (BCM) at Sriharikota for Indian Space Research Organisation, Sriharikota.
� Additional work for providing DetailedEngineering&ConsultancyservicesforExpansionProjectofSAIL/Rourkela Steel Plant, Rourkela.
� DetailedEngineering&Consultancyservices forPellet Plant # 3 Project at VijayanagarWorks ofJSW Steel Ltd.
� Consultancy services for Augmentation ofexisting Coal Chemicals Plant as an additionalworktotheContractfor“installationofCOB#5alongwithby-productplant andother associatedfacilities” for RINL/Visakhapatnam Steel Plant, Visakhapatnam.
� Preparation of Techno-Economic FeasibilityReport(TEFR)&providingDetailedEngineering& Consultancy services for Induction Furnace,
Rebar Mill & Power Plant for the proposedExpansionProjectofAloke Steels Industries Pvt. Ltd., Ramgarh.
� Engineering, Procurement and Construction (EPC) services for installation of an AlternateCokeOvenGasFuelMainforCOB#10atSAIL/IISCO Steel Plant, Burnpur.
� PreparationofDetailedProjectReport(DPR)andselectionofMineDevelopercumOperator(MDO)forUtkal-D&E inNALCO atAngul,Odisha forNational Aluminium Co. Ltd., Bhubaneswar.
� DetailedEngineering&Consultancyservices forExpansionProject(CAL)atVasindforJSW Steel Coated Products Ltd., Maharashtra.
� Change Order for providing Engineering,ProcurementandConstruction(EPC)servicesforRepair of Concrete Nozzle Deck (Rebuilding ofCOB#8)forSAIL/Bokaro Steel Plant, Bokaro.
� DetailedEngineering&Consultancyservices forAugmentation job of SMS-II forSAIL/Rourkela Steel Plant, Rourkela.
� Detailed Engineering & Consultancy servicesfor integration of Secondary De-dusting Systemof Converter#3 with Converter#1&2 of SMS-IIComplexof SAIL/Rourkela Steel Plant, Rourkela.
� Detailed Engineering & Consultancy servicesformodificationinCokeScreeningBuildingandStockHouseofBF-1ofJSW Steel Ltd., Dolvi.
� Consultancy Services for getting StatutoryClearance (EC from MoEFCC and NOC fromSPCB)forexpansioncummodernisationofSAIL/Bokaro Steel Plant, Bokaro.
� Preparation of EIA/EMP report for VSP’sCapacity Expansion Project of 6.3 Mtpa to 7.3Mtpa for RINL/Visakhapatnam Steel Plant, Visakhapatnam.
� Preparation of Feasibility Report (FR) for entireBlockofParbatpurCentralCoalMine forSAIL/Collieries Division.
� Detailed Engineering & Consultancy servicesfor New LHF-5 at SMS#2 for JSW Steel Ltd., Toranagallu.
� EngineeringservicesforSteelPlantLayout-Plan,Elevation&CrossSectionforproposed6.0MtpaIntegratedSteelPlantatBellaryforUttam Galva Ferrous Ltd., Mumbai.
� Detailed Engineering & Consultancy servicesfor modification in Water Treatment Plant for
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MECON
ProductionEnhancementinHSM-IatVijayanagarWorksforJSW Steel Ltd., Toranagallu.
� PreparationofEIA/EMPreport for expansionofJSWSteelfrom16to18MtpaatBellaryforJSW Steel Ltd., Bellary.
� PreparationofViabilityStudyreportforCapacityAugmentation of SMS-I of BPSL Plant atJharsuguda,OdishaforJSW Steel Ltd., Mumbai.
� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlantatHospetforMSPL Ltd.
� Consultancy services for Process WaterOptimization and Water Efficiency Audit forRajpuraDaribaComplexandDebariZincSmelterComplexforHindustan Zinc Ltd., Udaipur.
� Preparation of Techno-Economic FeasibilityReport(TEFR)forPelletPlant-3andCokeOvenBattery#5ofJSW Steel Ltd., Toranagallu.
� PreparationofDetailedFeasibilityReport (DFR)for 240KTPAZinc SmelterComplex atRajpuraDaribaMineforHindustan Zinc Ltd., Udaipur.
� PreparationofDetailedFeasibilityReport (DFR)for250KTPAZincSmelterComplexatDebariforHindustan Zinc Ltd., Udaipur.
� DetailedEngineering&Consultancyservices forimprovementofBFGasNetworkofGerdau Steel India Pvt. Ltd., Bangalore.
� Preparation of Techno-Economic FeasibilityReport (TEFR) forAugmentation / setting-upofadditionalfacilitiesfor13MTExpansionofJSW Steel Ltd., Toranagallu.
� DetailedEngineering&Consultancyservices forimplementationofIndependentSlagGranulationSystem in BF#1 Complex of JSW Steel Ltd., Toranagallu.
� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlantatHospetbasedonin-housedata(Stage-1)forMSPL Ltd., Hospet
� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlant atHospet asper actual site conditionafterphysicaldataverification(Stage-2)forMSPL Ltd., Hospet.
� PreparationofAssetValuation&TechnoViabilityStudyofSteelPlantandMinesforNeelachal Ispat Nigam Ltd., Duburi.
� Pre-dispatch inspection of Ladles andConvertersets from China for SAIL/IISCO Steel Plant, Burnpur.
� Preparation of Study Report on Odisha Vision2030: Development of Downstream & AncillaryUnitsinMetalSectorsforIPICOL, Bhubaneswar.
� PreparationofDetailedProjectReport(DPR)forsetting-upof Forward andBackward IntegrationProjectstotheBlastFurnaceUnit,MangaloreforKIOCL Ltd., Bangalore.
� Preparation of Detailed Project Report (DPR)for settingupofa2.0MtpaPelletPlantatRINLPremises, Visakhapatnam for KIOCL Ltd., Bangalore.
� Preparation of Feasibility Report (FR) forChasnallaWestQuarry forOptimumExtractionofCoalReservesbyOpenCastforSAIL/Collieries Division.
Energy Sector
� Additional work for providing Engineering& Project Management Consultancy (EPMC)services for Replacement of Pipelines of GujaratRegionandCauveryBasinAreaPipelineforGAIL (India) Ltd., Noida.
� Engineering&ProjectManagementConsultancy(EPMC)services forVadodaraCGDProjects forVadodara Gas Ltd., Gujarat.
� Preparation of RLA & Uprating study forpreparationofDetailedProjectReport(DPR)forPanchetHydelStationUnit-1ofCapacity40MWforDamodar Valley Corporation, Kolkata.
� ConsultancyservicesforWarehouseManagement,Project Management, Engineering and otherservices for Lube Field Paharpur, Kolkata ofIndian Oil Corporation Ltd., Mumbai.
� PreparationofMarketSurveyreportandDetailedFeasibilityReport(DFR)forDevelopmentofCityGasDistributionNetwork inFiveGA’s forGAIL Gas Ltd., Noida.
� Engineering&ProjectManagementConsultancy(EPMC)servicesatDibiyapurCompressorStationfor Fire Water Revamping Project for GAIL (India) Ltd., Noida
� Consultancy services for Augmentation of 132KVMRSSub-stationofHindustan Copper Ltd., Malanjkhand.
� ConsultancyservicesforvariousO&MrelatedjobsunderGAILNCRforGAIL (India) Ltd., Noida.
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MECON
MECON Limited
� Consultancy Services for Tendering of variousProcurementPackages/ServicesinvolvedinCityGasDistributiononARCBasisforSabarmati Gas Ltd., Gandhinagar.
� Additional work for providing DetailedEngineering & Consultancy services formodernisation of IOCL’s Lube Blending Plant atPaharpur, Kolkata for Indian Oil Corporation Ltd., Kolkata.
� PreparationofDetailedFeasibilityReport (DFR)for Development of New Bitumen & Base OilTerminal at Mumbai Refinery area for Bharat Petroleum Corporation. Ltd., Mumbai.
� Additional work for providing Engineering,Procurement and Construction Management(EPCM)services forPetCokesilos forTrucks&WagonLoadingalongwithassociatedConveyingSystem, Covered Shed for Sulphur Yard andDCU Coke Pit for Mangalore Refinery & Petrochemicals Ltd., Mangalore.
� Additional work for providing Engineering,Procurement and Construction Management(EPCM) services for Construction ofMS, HSD,ATFDayTanksLoadingFacilities,TruckParkingTerminal (Marketing Terminal) and Flare GasRecoverySystem(FGRS)forMangalore Refinery & Petrochemicals Ltd., Mangalore.
� PreparationofDetailedFeasibilityReport (DFR)forNellore toKakinadaNaturalGasPipeline forIndian Molasses Company.
� PreparationofPre-FeasibilityReportfor10nos.ofGAsforthepurposeofparticipationin10th round ofBiddingbyPNGRBforGAIL Gas Ltd.
� PreparationofFeasibilityReport(FR)toadheretoMoEFnormsforFlueGasEmissionandSpecificWater Consumption limits in Power Plant forBokaro Power Supply Co. (P) Ltd., Bokaro.
� ExtensionofContractforprovidingConsultancyservices for installation of 300 Tph Boiler & 30MWBPTGProjectofBokaro Power Supply Co. (P) Ltd., Bokaro.
� Additional work for providing DetailedEngineering&ConsultancyservicesforCoalbasedThermalPowerPlant(1x250MW)atRourkelaforNTPC-SAIL Power Company Ltd., New Delhi.
Infrastructure Sector / Other Engineering
� Project Management Consultancy (PMC)services for Redevelopment/ Development ofRailway Stations for Indian Railway Stations
Development Corporation Ltd., New Delhi.
� ProjectManagementConsultancy(PMC)servicesfor Bharatnet Project Phase-II in Jharkhand forJharkhand Communication Network Ltd., Ranchi.
� Consultancy & PMC Services for installation ofsuitable Fugitive Dust Pollution Control Systemalong roads inside Paradip Port Trust, Odisha.
� Master Consultant for the work of upcoming50 MLD Desalination Plant at Dahej, Bharuch,Gujarat for Gujarat Industrial Development Corporation, Bharuch.
� Additional work for providing ProjectManagement Consultancy (PMC) services toexecute Payload Fabrication & Testing Facility(PFTF) Building at 39 Acres New SAC CampusatBopal,AhmedabadforIndian Space Research Organisation, Ahmedabad.
� Design, Engineering & PMC Services forConstruction of 2nd RCC Bridge over theAtharabanki Creek nearGateNo. 2 forParadip Port Trust, Odisha.
� PreparationofDetailedFeasibilityReport (DFR)for Alternate Water Supply from MuvattupuzhaRiver for BPCL Kochi Refinery for Bharat Petroleum Corporation Ltd.
� Engineering&ProjectManagementConsultancy(EPMC) services for Construction of OfficeBuildingatSonepatforGAIL Gas Ltd.
� Preparation of Feasibility Report (FR) for CoalTransportationsystembetweenGidhmuri-PaturiaCoalMine toPremNagarTPPatDist. Surajpurfor Chhattisgarh State Power Generation Co. Ltd., Raipur.
7.0 FOREIGN ASSIGNMENTS
Overseas assignment bagged by your company ishighlightedbelow:
� DetailedEngineering&Designfortransportationof White Oil Petroleum through Pipeline fromChattogram to Dhaka, Bangladesh for Auleek Services & Oncosys International JV, Dhaka, Bangladesh.
� Preparation of Feasibility Study report forextension of Iron Ore Storage Yard for Bahrain Steel BSCC E.C., Bahrain.
8.0 FUTURE BUSINESS VISION
The Global Steel outlook seems to be positive withall regions – NAFTA, EU, CIS, AFRICA, Middle
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MECON
East,ASIA&OCEANIAexpectingapositivegrowthdespite a tense Global trade scenario. The shortrangeoutlookofWSAcorroborates itwith ahealthy2.9% and 4.6% growth projection for developingEconomies(excludingChina).AstableGovt.andvastopportunities in infrastructure coupled with Govt.resolveforbettermentofcountry’sinfrastructurewouldkeep thegrowthwheelmoving.Nevertheless, theOil&Gas sector opportunities are expected to keep themomentumgoingwhereasMining&Mineralsectors,Energy Efficiency, FlueGas desulphurization etc. arethenewavenuesyourcompanyislookingatwithgreatinterest.Yourcompanyisintheprocessofforgingnewbusiness alliances with global leaders which wouldfurther leg up our efforts to enter into new businessareas as well as strengthen our positioning in theexistingmarket.Westandcommittedtoourbusinessvisionofconsolidatingourpresenceinthetraditionalbusinessdomainwhilekeepscratchingthegroundforvirginopportunitiesthrownopenbyeconomy–bothdomestic as well as global.
9.0 FINANCIAL RESULTS
The extract of Annual Return for the period underreview,isannexedasAppendix- I.
Thefinancialhighlightfortheperiodunderreviewisasunder:
Particulars(₹ In Lakh)
2017-18 2018-199.1 Material changes and
commitment, if any, affectingthe financial position whichhas occurred between the endof financial year to which thefinancial statements relate andthedateofthereport.
NIL NIL
9.2 The amount, if any which isproposedtocarrytoanyreserve.OpeningBalanceAdditionduringtheyearAdjustmentduetoimplementationofIndASUtilised / Reversed during theyear
10,634.025,802.33
-
133.88
16,570.231,374.01
13,485.57
(1397.70)
ClosingBalance 16,570.23 30,032.119.3 Particularsofloans,guarantees
or investments under Section186oftheCompaniesAct,2013
519.52# 519.52#
9.4 Particulars of contracts orarrangementswithrelatedpartyreferred under section 188(1)in FormAOC-2. (Enclosed asAnnexure- A)
Nil Nil
(#) Represents the investment (Gross) made by thecompany.
0
100
200
300
400
500
2015-16 2016-17 2017-18 2018-19
317.
28
342.
93
445.
57
470.
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in ̀
Cror
e
Year
Turnover
10.0 DIVIDEND
Considering the financial position, CAPEX, futurebusiness expansion needs, etc., Board has notrecommended dividend on Equity Share Capital fortheFinancialYear2018-19.
10.1 CUMULATIVE DIVIDEND & TAX PAID
Yourcompanywhichhadpaidupcapitalof₹4,013.84lakh (previous year ₹4,013.84 lakh) including BonusSharesworth₹40.31lakh,haspaidcumulativedividendincludingtax(Equity&Preference)of₹7,863.78lakhtill 2017-18 and have not recommended dividendonEquity ShareCapital for 2018-19.The cumulativeincometaxtotheexchequeramountingto₹37,998.33lakhhasbeenpaid/providedtill2018-19.
11.0 EARNING PER EMPLOYEE
OperatingTurnoverperemployeeperyearisasfollows:
11.35 15.9923.46 27.66
05
1015202530
2015-16 2016-17 2017-18 2018-19
In ̀
Lakh
Year
OPERATING TURNOVER PER EMPLOYEE
12.0 RESEARCH & DEVELOPMENT
Commitments to R&D are essential in the presentIndian scenario. Make in India focus is one of thekey areas on which our laboratories and researchinstitutions are working by identifying the problemsand solving them with technology. R&D plays animportant role in augmenting the capabilities of thecompany through innovations in ideas, designs etc.which can be a source of potential values, when itcomes to gaining competitive advantages. Innovationresultsinhighqualityjobs,successfulbusiness,bettergoodsandservicesandmoreefficientprocess.R&Dofyour Company mostly undertakes Applied Research
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MECON
MECON Limited
and Experimental Development in the core area ofbusinesssuchasIronandSteelaswellasfocusedareasofnationalimportancesuchasDefence,Environmentetc. In recent years, not only your Company carriesoutselfsponsoredresearchworksbutalsocollaborateswithvariousexternalfundingagenciessuchasDRDO,DST,Ministry of Environment,Ministry of Steel etcfor research activities. Collaborative efforts in R&Dwith academic institutions and Industrial house areundertaken to strengthen the research potential andapplication domain.
Considering the Government of India’s initiative ofpromotinginnovativecultureinCPSEs,yourCompanyhas setup an Innovation Cell which comprises ofmembers from technological departments and R&D.ThescopeofInnovationCellistoestablishinnovativetechnologyandbusinessprocessre-engineeringideaswithsignificantbusinesspotential,socialrelevanceandfocusonenvironmentprotection.TheobjectivebehindsettingupoftheCellistotranslatetheinnovativeideasinto a viable technology through collaborative effortwithexternalinstitutions.
The R&D of your Company is recognised by theDepartmentofScientific&IndustrialResearch(DSIR),Government of India and the recognisition is validfor three years upto 31.03.2019. The application forrenewalofrecognisitionhasalreadyappliedfor.
Till 31.03.2019, your Company has filed 11 patentapplications with Indian Patent Office which arependingatdifferentlevels.
Projects Completed
Development of Torpedo Ladle Car monitoring system using Infrared Imaging.
WiththeintentofreducingfailuresinTorpedoladlesandincreasingitsaveragelife,yourCompanyinitiatedtheprojectwhichhasbeen successfully implementedatRSP,Rourkela.TheprojectisfundedbytheMinistryofSteel.
Patents Sealed:
YourCompanyhasbeengranted1(one)patentrightsinthefieldofBasicOxygenFurnace(BOF)duringtheyearunderreview.
13.0 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
13.1 Conservation of Energy
Efforts are being undertaken to change Steel plantconfigurationbyeliminatingenergyintensiveoutdatedtechnologies and introducing state of the art energyefficienttechnologiesinironandsteelplants.
Overtheyears,yourcompanyhassuggestedanumberofestablishedenergysavingmeasures/technologiestovarioussteelplantsprojectsinIndia,resultinginsavingin scarce, high priced coking coal, saving in importof coking coal and resultant reduction inproductioncosts. In addition to these measures, the companyhas suggested few more energy saving measures /technologiesinvariousareaofsteelproduction,during2018-19,whicharesummarisedbelow:
CokeMakingPlant
¾ Machine based Hydro-jet door cleaningsystemadoptedinVSPCOB#5willconserveenergybylessmachinetraveltimeaswellaslesspollutionthroughdoorswhichresultsinpreventionofenergyrichrawcokeovengasleakage.
¾ Adoption of VVVF drive for Raw GasExhauster inBPPplantofVSPCOB#5 forsavingelectricalpower.
13.2 Technology Absorption
Thedetailedinformationoneffortsmadeandbenefitsderived like products improvement, cost reduction,product development or import substitution fromtechnologyabsorptionalongwithtechnologyimportedand expenditure incurred on R&D as per Section134(3) of theCompaniesAct, 2013 readwithRule 8of Companies (Accounts) Rules 2014 is enclosed atAnnexure-ItothisReport.
14.0 FOREIGN EXCHANGE EARNINGS AND OUTGO
Your Company has earned ₹462.38 lakh ForeignExchangeduringtheyear2018-19.TheexpenditureinForeignExchangeremitted/actuallyspentduringtheyearis₹275.33lakhasperdetailsgivenbelow.
Particulars (₹ in Lakh)Professional&ConsultationFees 143.27Othermatters 132.26Total 275.33
15.0 HUMAN RESOURCE DEVELOPMENT
Inaknowledge-basedorganization,Services,Processesand Business Models can be copied, but to havecompetitiveadvantage,theorganizationalcompetencei.e.theHumanCapitalneedstobeuniqueinnature.InyourCompany,developingandsustainingacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise,byconstantlyupgradingtheirknowledgeandskillshasalwaysbeenManagement’stopmostpriority.Focus is laidon acquiringnew skills and sharpeningexisting ones, which leads to better performance,
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MECON
increases productivity and evolves our employees asbetter leaders.
Totransformourcompanyintoalearningorganizationand encourage a culture of continual developmentamongst employees, apart from conducting regulartrainings on technical, skill related and soft skill,basedonTrainingNeedAnalysis andOrganizationalRequirement, more focus was laid upon latestTechnological Advancements and developingLeadership Effectiveness. Moreover, variousKnowledge Sharing sessions have been conductedthroughconcerneddomainexperts.Managementhasachieved1556Mandaysoftraininganddevelopment(Technology–598Mandays,Skill related–557MandaysandSoftSkill–401Mandays)asagainstthetargetof1300Mandaysfixedforthefinancialyear.
Apartfromthis,tofacilitateholisticdevelopmentandincreaseproductivity,employeeengagementactivitiessuchasHealthAwarenessPrograms,Quizcompetitions,Debatecompetitions,RetirementPlanning, etc.,wereorganized on regular basis.
16.0 PERSONNEL & WELFARE
EmployeesstrengthofyourCompanyattheendoftheyear i.e., as on31.03.2019was 1284.Outof the totalstrength of 1284, 249 belong to SC, 135 belong theST categories& 11 belong to PWD category.Out ofthe total strength of 1284 employees, 127 are femaleemployees.
16.1 Sexual Harassment of women at workplace (Prevention, Protection and Redressal Act, 2013)
NumberofCasesfiled
Numberofcasesdisposed.
Nil Nil
16.2 AsperDPEGuidelines,WomeninPublicSector(WIPS) Cell was established in your companyinNovember,2015 fordevelopmentofwomenemployeesandforpromotingtheirinteractionswith women employees of other public sectorunits.
17.0 INDUSTRIAL RELATIONS
TheCompany focused on employee relationship andall employee related matters were addressed leading to greater satisfaction of the employees. The workatmosphere remained healthy and harmonious andthishelpedtheCompanytoachievebetterproductivity.TheCompanycontinuedtohavepeacefulandcordialrelations with the employees and most of the issueswereresolvedthroughinteractionsanddialoguewiththe representatives of Non-Executive and Executive
employees. Liaison with other associated externalagencies was also maintained cordially and on regular basis.
18.0 ACTIVITIES / STEPS TAKEN FOR THE WELFARE OF SC / STs IN THE COMPANY.
In addition to its corporate and business objectives,theCompanyisfullyawareofitssocialresponsibilitiesfordevelopmentandwelfareofmembersofScheduledCaste / Scheduled Tribe Communities.The strengthandnumberofSC/STcandidatespresentlyemployedinyourCompanyareindicatedbelow:
Cat./Group
Man-power as on 31st
March, 2019
SC ST PWDNo % No % No %
A 1131 225 19.89 68 6.10 6 0.53B 56 7 12.50 23 41.07 0 0C 97 17 17.53 44 45.36 5 5.15Total 1284 249 19.39 131 10.51 11 0.86
The Company has adopted adequate measures forsafeguarding their interests and welfare, such aspromotion as per general trend, power regard forhumanrights,equalityand impartiality inall spheresofactivitiesandprovidingabundantopportunitiesforselfdevelopmentthroughsports,cultural,educationalandrecreationalfacilities.ScheduledCaste/ScheduledTribeemployeesandtheirfamiliesresidinginShyamaliTownshipenjoyallthefacilitiesasavailabletoothers.InordertoimplementtheGovernmentofIndiaDirectivesand Post-based Rosters with regard to recruitmentandpromotionofSCs/STs,andSC/STCellhasbeenformedwithDeputyGeneralManagerI/c(Personnel)as Liaison Officer.The SC/ST Cell maintains properrecord regarding recruitment and promotion and statisticsofSC/STemployeesandfurnishesreportstotheMinistry of Steel on regular basis.TheCompanyhas made consistent efforts to accommodate SC/STcandidatesinallrecruitmentsinMECONaswellasinpromotiontothenexthighergradeasperGovernmentdirective.
Allpossiblestepsaretakentofillupthepostinreservedcategory as per Government Directives issued fromtime to time.
19.0 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY DEVELOPMENT (CSR&SD)
AsprovidedunderSection135 readwithSchedule–VII to the Companies Act, 2013 your Company has
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MECON Limited
carriedoutCSRactivities,mainlyfocusedonSanitation(SwachhBharatAbhiyan),Healthcare,DrinkingWater,Education, Skill development & Livelihood, Ruraldevelopment, etc. out of carried over fund from FY2017-18andfundallocatedforFY2018-19.ThedetailsareenclosedvideAppendix – II.
20.0 OFFICIAL LANGUAGE POLICY (USE OF RAJBHASHA)
YourCompanyiseffectivelyimplementingtheOfficialLanguagePolicyofGovt.ofIndiainitsofficialwork.ItisalsomakingallouteffortstoachievethetargetsfixedintheAnnualProgrammeissuedbyRajbhashaVibhag,Ministry of Home Affairs, Govt. of India. For thispurpose,thereisanOfficialLanguageImplementationCommittee under theChairmanship ofCMD.Hindiworkshops are being organised regularly for theemployees.YourCompanyisanimportantmemberofTown Official Language Implementation Committee(TOLIC), Ranchi and actively participates in all theprogrammes.
Joint Director (Rajbhasha), Ministry of Steel, Govt.ofIndiainspectedtheprogressiveuseofHindiatourHeadOffice,Ranchion11thMay,2018.TheDy.Director(Rajbhasha),HomeMinistry,Govt.ofIndiainspectedtheprogressiveuseofHindiinourDelhiOfficeon10th
October,2018.
Rajbhasha Vibhag of the Company had organisedfollowingeventsduring2018-19.
¾ Inhouse Hindi Natak was organised on 7th
July,2018inourCommunityHall.
¾ AllIndiaRajbhashasymposiumwasorganisedon 7th September, 2018 at our Head Office,Ranchi.Ithastwosessions,thethemeoffirstsessionswas“MakeinIndia:TheroleofPSU’sofMinistryofSteel”andthethemeofSecondSessionswas“TheRoleofRajbhashaHindiinrespectofWorldseneriao”.InthissymposiumSriAnandKumar,JointDirector(Rajbhasha),Ms.AsthaJain,AssistantDirector(Rajbhasha),MinistryofSteel,Govt.ofIndia&SriPrabhatVermaandDr.VikasDave,MemberofHindiAdvisioryCommittee,MinistryofSteel,Govt.ofIndiawerepresentasaSpecialGuest.Inthissymposia many delegates also participated fromdifferentPSU’sunderMinistryofSteellike RINL, NMDC, SAIL, Ferro Scrap Ltd.,MSTCetc.
¾ “Hindi Pakhwara” was observed at HeadOffice aswell as in all the site offices of thecompanyfrom14.09.2018to28.09.2018.On
this occasion all employees took a pledgeto increase use ofHindi in their day to dayofficial work. During the “Hindi Pakhwara”competitions of various nature were alsoorganized at Head Office and other officesof the Company. A special Hindi workshopandaRajbhashasymposiumon“UnicodekejariyeHindimeKam-Kaj”werealsoorganisedduringtheHindiPakhwara.
¾ Organised“HashyaKaviSammelan”atHeadoffice.
¾ Organised “Three-days Natkotsab” at Headoffice.
¾ “Noting & Drafting” Competition was alsoorganised on 27th February, 2019 onTOLIClevel.InthecompetitionparticipantsfromallTOLICmembers(PSU),Ranchitookpart.
¾ Obligatory Hindi Training for Non-Hindispeaking personnel of the company wasorganised from January-May,2019 (Session)coveringPrabodh,Praveen&Pragyaclassesswhichwasattendedby10employees.
21.0 VIGILANCE ACTIVITIES
TheVigilance set up of the Company is functioningunderShriUpkarKumarKedia,ITS,CVO(FullTime)whotookchargeon30.10.2017.CVOoftheCompanyprovides a link between the organization and theAdministrativeMinistry,CVCandCBIandalsoactsasaspecialassistant/advisortoCMDandreportsdirectlytohiminallmatterspertainingtovigilance.
Efforts are on to continuously enhance transparencyin various business activities of the company withuseof computerizationand leveragingof technology.Emphasis is laid on preventive vigilance, spreadingawareness, surveillance and analysis of systems &procedures indetail toensureoptimumutilizationofresources, appropriate & timely decisions, correctiveaction against defaulters and transparency &accountabilityinthesystem.Inthisdirectionrelevantcirculars and guidelines from CVC and statutoryauthorities,asandwhenissued,areputinthein-houseintranet ‘meconinfo’ forwider circulation among theemployees.Vigilancearticlesarealsopublishedinthein-housepublicationswheneverpossible.
Complaints, as and when received, are investigatedpromptlybyVigilanceDepartmentaftercheckingtheirveracity wherever needed. Sensitive sections/ areasin the organization have been identified and thrustis laid on conducting surprise inspections, regular
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MECON
inspections,scrutinyoffiles&studiesintheseareasandsuitablesuggestionsincludingjobrotationaregivenforimprovementinthesystemtoeliminatediscrepanciesfound, if any. A number of suggestions given byVigilance Department for systemic improvementand streamlining various procedures have beenimplementedandtheprocessiscontinuing.
Online Vigilance Clearance System for the purposeof vigilance clearance/ status of employees in case ofpromotion, resignation, retirement etc. exists and Vigilance Department maintains a computerizeddatabase.SubmissionofAnnualPropertyReturnshasbeenmadeonline in theCompanyandAPRs for theyear2018havebeensubmittedbytheemployeesanditsdatabase is maintained and is continuously scrutinized and monitored.
IntegrityPact(IP)isfunctionalinyourCompanysince2007underanIndependentExternalMonitorwho isresponsibleforoverseeingtheprocessofprocurementand transactions where Integrity Pacts are signedbetween your Company and counterparties. Your Company enters into Integrity Pact with vendors/suppliers/contractorsforordersofonecrore&aboveforEPCProjectsandforordersof₹25.0lakh&aboveforTownAdministrationandIn-houseProcurement.ThedraftIPformspartoftenderdocuments,whereverapplicable.TillMarch2019,yourCompanyhassignedIntegrityPact(IP)with196suppliers/contractors.Sofarnorepresentation/complaints/disputeshavebeenreceivedinthemattersoftendersandcontractsunderIP.
Vigilance Awareness Week-2018 was observed atCompany’s Head Office, Ranchi and at various SiteOfficesi.e.Delhi,Bangalore,Bhilai,Burnpur,Durgapur,Kolkata, Visakhapatnam, Nagarnar (Chhattisgarh),Rourkela from 29th October to 3rd November 2018inwhich the employees& studentsparticipatedwithenthusiasm. As part of outreach activities awarenessprogrammes in various forms were conducted inseveral schools & colleges located in these placesin course of observance of VAW-2018. The themefor observing Vigilance Awareness Week 2018 was“EradicateCorruption–BuildaNewIndia”.
Programsuchastalks,interactivesessions,presentation,essay competition, poster and painting competition, vigilance walk, were also organized in these offices/Institutions across the country for sensitizingemployees & participants against corruption. Paneldiscussionswerealsoorganizedontopicsofsensitiveareasofworking.
Complaint Handling Policy has been uploaded
on Company’s website with a provision of lodgingcomplaint online which is accessible to commonindividuals.ContactDetailsofCVOandSeniorOfficialsofVigilance department,Organizational Structure ofDepartment,VigilanceQualityPolicyoftheCompany,ISO Certificate of Vigilance Department, HandbookofCVCCirculars&Guidelines,ResolutiononPublicInterestDisclosures&ProtectionofInformer(PIDPI),IntegrityPacthavebeenuploadedintheVigilancetabavailable on the Company’s website. Whistle BlowerPolicy, Fraud Prevention Policy and RTI Manualhave been uploaded on Company’s website www.meconlimited.co.in.
YourcompanyispleasedtosharewithyouthatonlineBillWatchSystemhasbeencombinedwithCompany’sGST system (MecGST) w.e.f. 01.09.2018 to enabledisplay of status of payments of vendor’s/ supplier’sbills/invoicesmoreeffectivelyandavoidingduplicationofdata entry for twodifferent systems. Itwould alsoensurecompliancewithrecentinstructionsfromCVCon monitoring & release of payments to vendors/suppliers/contractors.
YourCompanyispleasedtoinformyouthatVigilanceDepartment follows a well-established QualityManagementSystem(ISO9001:2008)whichhasbeencertifiedbyTUVIndiaPvt.Ltd.(asubsidiaryofTUVNORDCERTGmbh,Germany)andthedepartmentisintheadvancestagesformeetingtherequirementstogetupgradedtoISO9001:2015certification.
22.0 DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT.
The Company has a Risk Management Policywith the objective of managing the potential risksand reducing the risk exposure in the long run bycontinual identification, assessment / monitoringand management of risks associated with its overallbusiness processes and operations.
The Company’s risk management frameworkencompassesallareasofoperationincludingtechnical,marketing, contracts, financial andhuman resources.ManagementisaccountabletotheBoardforeffectiveimplementation of risk management strategies in allrelevantareasofcompanyoperations.Forthispurpose,periodicreviewsareheldbothattheoperationallevelsand at the corporate level to identify and prepareactionplans to address anynew risk or harness newopportunities that have arisen or likely to emergeand also toprevent / eliminate the instancesofnon-compliancewithlaws®ulations.
TheCompany’sriskmanagementandcontrolsystemsprovideareasonableassurancetowardstherealization
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MECON Limited
of strategic objectives of the organization. Duringthe year under review there was no such potentialriskwhichcouldhavethreatenedtheexistenceoftheCompany. However, in view of the ever increasingcomplexitiesofbusinessmodelsandmarketdynamics,yourcompanyisintheprocessofupgradingtheRiskManagementframework.
23.0 RIGHT TO INFORMATION
In line with the directives of the Government ofIndia, your Company has implemented the Rightto Information Act, 2005 from the date of itsimplementation. All relevant manuals pertaining toRTI Act, 2005 have been hoisted on the Company’swebsite www.meconlimited.co.in w.e.f 19.09.2005andaretimelyupdated.APublicInformationOfficer(PIO)hasbeennominatedby theManagement at itsHeadquarters and various Asst. Public InformationOfficers(APIO)havebeennominatedatHeadOfficeas well as various Regional and Site offices of theCompany.Thequeriescoming to theCompany fromthe public are being attended to by these nominatedofficialsandrepliedbacktotheapplicantbythePublicInformationOfficerwithinthestipulatedtimeperiod.
Allquarterlyandannualreturnsaretimelye-filedwiththeStatutoryAuthorities.
24.0 CHANGES IN BOARD OF DIRECTORS DURING F.Y 2018-19.
ShriR.H.JunejawasappointedasDirector(Finance)w.e.f.20.04.2018.
Shri Sunil Barthwal, IAS who was appointed asGovernmentDirectoron11.10.2017ceased tobe thedirectoroftheCompanyw.e.f.24.05.2018.
ShriT.SrinivaswasappointedasGovernmentDirectoron24.05.2017ceasedto thedirectorof theCompanyw.e.f.16.07.2018.
Smt. Rasika Chaube, Additional Secretary, MinistryofSteelwasappointedasGovernmentDirectorw.e.f.16.07.2018.
Shri Deepak Krishan was appointed as Part- timeIndependentDirectorw.e.f.14.12.2018.
25.0 MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Management Discussion & Analysis ReportcoveringtheperformanceandoutlookoftheCompanyisenclosedvideAnnexure-II.
26.0 CORPORATE GOVERNANCE
Thecompanyhas compliedwith the requirementsofCorporateGovernanceGuidelines issuedbyGovt. ofIndia.The detail in this regard forming part of thisreportisenclosedvideAnnexure-III.
27.0 AUDITORS
M/s. V. Rohatgi & Co, Chartered Accountants, wasappointed as the Statutory Auditors for the financialyear2018-19bytheComptroller&AuditorGeneralofIndia(C&AG).Theyhavealsobeenassignedtocarryout theauditunderSection44ABof the IncomeTaxAct,1961forthefinancialyear2018-19.
28.0 DIRECTOR’S RESPONSIBILITY STATEMENT
PursuanttotherequirementunderSection134(5)ofthe Companies Act, 2013 with respect to Director’sResponsibilityStatement,itisherebyconfirmedthat:
i) In the preparation of the annual accounts forthe financial year ended 31stMarch, 2019, theapplicable accounting standards had beenfollowedalongwithproperexplanationrelatingto material departures;
ii) The Directors had selected such accountingpoliciesandappliedthemconsistentlyandmadejudgments and estimates that are reasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitorlossoftheCompanyforthatperiod;
iii) The Directors had taken proper and sufficientcareforthemaintenanceofadequateaccountingrecords in accordance with the provisions ofthe Companies Act, 2013 for safeguarding theassets of theCompany and for preventing anddetectingfraudand otherirregularities;.
iv) TheDirectorshadpreparedtheannualaccountsforthefinancialyear2018-19onagoingconcernbasis; and
v) The Directors had devised proper systemsto ensure compliance with the provisions ofall applicable laws and that such system wereadequateandoperatingeffectively.
29.0 INDEPENDENT DIRECTOR DECLARATION
In terms of Section 149(7) of the Companies Act,2013,necessarydeclarationhavebeengivenbyPart-timeIndependentDirectorsstatingthattheymeetthecriteriaofindependenceasprovidedinSection149(6)oftheCompaniesAct,2013.
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MECON
30.0 ACKNOWLEDGEMENT
The Directors commend the indefatigable effortsof the employees at all levels which has contributedimmensely to the growth of the Company this year.Their dedication and commitment will stand theorganisation in good stead tomeet the challenges infuture.
MECON has also enjoyed unstinting support andguidance from all theMinistries of the Governmentof India, particularly the Ministry of Steel, StateGovernments etc. All the stakeholders, especiallythe suppliers, customers and business partners, haveextended tremendous support towards the success oftheOrganisation.
TheDirectorsassureoftheirunwaveringfocusonthe
strategicplansofyourCompanytosteeritresponsiblytostellarheights.
Forandonbehalfofthe BoardofDirectorsof MECONLimited
AtulBhatt ChairmanandManagingDirector
Place:Ranchi
Date:28.09.2019
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MECON Limited
Appendix - I
EXTRACT OF ANNUAL RETURNAs on financial year ended on 31.03.2019
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014.I. REGISTRATION & OTHER DETAILS:
1 CIN U74140JH1973GOI0011992 RegistrationDate 31.03.19733 NameoftheCompany MECONLIMITED4 Category/Sub-categoryoftheCompany PRIVATECOMPANY
GOVERNMENTCOMPANY5 AddressoftheRegisteredoffice&contactdetails VIVEKANANDAPATH,P.O.DORANDA,
RANCHI-834002(JHARKHAND)6 Whetherlistedcompany NO7 Name,address&contactdetailsoftheRegistrar&
TransferAgent,ifany.NIL
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)
Sl. No.
Name and Description of main products / services
NIC Code of the Product/service
% to total turnover of the company
1 CONSULTANCYSERVICES 80.00%
2 CONSTRUCTIONCONTRACTS 20.00%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sl No
Name and address of the Company
CIN/GLN Holding/ Subsidiary/ Associate
% of shares held
Applicable Section
1 METALLURGICAL&ENGINEERINGCONSULTANTS(NIGERIA)LTD.
– JOINTVENTURE 50%
2(6)OFCOMPANIESACT,2013
IV. SHARE HOLDING PATTERN (Equitysharecapitalbreakupaspercentageoftotalequity)(i) Category-wise Share Holding
Category of Shareholders
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the
year Demat Physical Total% of Total
SharesDemat Physical Total
% of Total Shares
A. Promoters
(1) Indian - - - - - - - - -
a) Individual/ HUF - 240 240 0.0006% - 240 240 0.0006% 0.0000%
b) Central Govt - 40,138,120 40,138,120 99.9994% - 40,138,120 40,138,120 99.9994% 0.0000%
c) State Govt(s) - - - 0.0000% - - - 0.0000% 0.0000%
FORM NO. MGT 9
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Category of Shareholders
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the
year Demat Physical Total% of Total
SharesDemat Physical Total
% of Total Shares
d) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000%
e) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%
f) Any other - - - 0.0000% - - - 0.0000% 0.0000%
Sub Total (A) (1) - 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%
(2) Foreign
a) NRI Individuals
- - - 0.0000% - - - 0.0000% 0.0000%
b) Other Individuals
- - - 0.0000% - - - 0.0000% 0.0000%
c) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000%
d) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%
e) Any other - - - 0.0000% - - - 0.0000% 0.0000%
Sub Total (A) (2) - - - 0.0000% - - - 0.0000% 0.0000%
TOTAL shareholding of promoter (A) = (A) (1) + (A) (2)
- 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%
B. Public Shareholding
1. Institutions
a) Mutual Funds - - - 0.0000% - - - 0.0000% 0.0000%
b) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%
c) Central Govt - - - 0.0000% - - - 0.0000% 0.0000%
d) State Govt(s) - - - 0.0000% - - - 0.0000% 0.0000%
e) Venture Capital Funds
- - - 0.0000% - - - 0.0000% 0.0000%
f) Insurance Companies
- - - 0.0000% - - - 0.0000% 0.0000%
g) FIIs - - - 0.0000% - - - 0.0000% 0.0000%
h) Foreign Venture Capital Funds
- - - 0.0000% - - - 0.0000% 0.0000%
i) Others (specify)
- - - 0.0000% - - - 0.0000% 0.0000%
Sub-total (B)(1):- - - - 0.0000% - - - 0.0000% 0.0000%
2. Non-Institutions
a) Bodies Corp.
i) Indian - - - 0.0000% - - - 0.0000% 0.0000%
ii) Overseas - - - 0.0000% - - - 0.0000% 0.0000%
b) Individuals
i) Individual shareholders holding nominal share capital upto Rs. 1 lakh
- - - 0.0000% - - - 0.0000% 0.0000%
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MECON Limited
Category of Shareholders
No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the
year Demat Physical Total% of Total
SharesDemat Physical Total
% of Total Shares
ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh
- - - 0.0000% - - - 0.0000% 0.0000%
c) Others (specify)
Sub-total (B)(2):- - - - 0.0000% - - - 0.0000% 0.0000%
Total Public (B) = (B) (1) + (B) (2)
- - - 0.0000% - - - 0.0000% 0.0000%
C. Shares held by Custodian for GDRs & ADRs
- - - 0.0000% - - - 0.0000% 0.0000%
Grand Total (A+B+C)
- 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%
(ii) Shareholding of Promoters
S N
Shareholder’s Name
Shareholding at the beginning of the year Shareholding at the end of the year
% change in shareholding
during the year
No. of Shares
% of total Shares of the
company
% of Shares Pledged/
encumbered to total shares
No. of Shares
% of total Shares of the
company
% of Shares Pledged /
encumbered to total shares
1 THE PRESIDENT OF INDIA
40,138,120 99.9994% NIL 40,138,120 99.9994% NIL 0.0000%
2 SMT. RASIKA CHAUBEY, Govt. Director & Additional Secretary, Ministry of Steel*
120 0.0003% NIL 120 0.0003% NIL 0.0000%
3 SHRI ATUL BHATT, CMD*
120 0.0003% NIL 120 0.0003% NIL 0.0000%
TOTAL 40,138,360 100.0000% 40,138,360 100.0000% 0.0000%
*heldasnomineeshareholderofthePresidentofIndia.
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
SN ParticularsShareholding at the beginning of
the yearCumulative Shareholding during
the year
No. of shares % of total shares No. of shares % of total shares
Atthebeginningoftheyear
-NOCHANGE-
Date wise Increase /Decrease in PromotersShare holding during theyearspecifying
Attheendoftheyear
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MECON
(iv) Shareholding Pattern of top ten Shareholders
(OtherthanDirectors,PromotersandHoldersofGDRsandADRs):
SN For each of the Top 10 shareholders
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares No. of shares % of total shares
At the beginning oftheyear
-NIL-
Date wise Increase/Decrease inPromoters Shareholding during theyearspecifying
At the end of theyear (oron thedateof separation, ifseparatedduringtheyear)
(v) Shareholding of Directors and Key Managerial Personnel:
SN For each of the Directors and Key Managerial Personnel
Shareholding at the beginning of the year
Cumulative Shareholding during the year
No. of shares % of total shares
No. of shares % of total shares
1 Smt. Rasika Chaube, Government Director & Additional Secretary, Ministry of Steel*
Atthebeginningoftheyear 120 0.0003% 120 0.0003%
Date wise Increase /Decreasein Share holding during theyear specifying the reasons forincrease/decrease
- 0.0000% - 0.0000%
Attheendoftheyear 120 0.0003% 120 0.0003%
2 Shri Atul Bhatt, Chairman and Managing Director*
Atthebeginningoftheyear 120 0.0003% 120 0.0003%
Date wise Increase /Decreasein Share holding during theyear specifying the reasons forincrease/decrease
- 0.0000% - 0.0000%
Attheendoftheyear 120 0.0003% 120 0.0003%
*heldasnomineeshareholdersofthePresidentofIndia
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MECON Limited
V. INDEBTEDNESS
IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.
(Amt.₹/Lakh)
Particulars Secured Loans excluding deposits
Unsecured Loans
Deposits Total Indebtedness
Indebtedness at the beginning of the financial year
i)PrincipalAmount
ii)Interestduebutnotpaid
iii)Interestaccruedbutnotdue - -
Total (i+ii+iii) - -
Change in Indebtednessduring thefinancialyear
*Addition
*Reduction - -
NetChange - -
Indebtedness at the end of the financial year
i)PrincipalAmount
ii)Interestduebutnotpaid
iii)Interestaccruedbutnotdue
Total (i+ii+iii) NIL NIL
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MECON
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
S N.
Particulars of Remuneration
Name of Managing Director / Whole time Director / Manager (Shri) Total Amount
Atul Bhatt P. K. Sarangi Gautam Chatterjee
Salil Kumar RH Juneja
Period From 01-04-18 to 31-03-2019
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
2,758,070.00 2,758,751.00 2,514,684.00 2,707,800.00 2,088,448.00 12,827,753.00
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
181,785.00 282,502.00 172,118.00 156,612.00 206,689.00 999,706.00
(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961
-
2 Stock Option -
3 Sweat Equity -
4 Commission -
- as % of profit -
- others, specify -
5 Others, please specify -
Total (A) 2,939,855.00 3,041,253.00 2,686,802.00 2,864,412.00 2,295,137.00 13,827,459.00
B. Remuneration to other Directors
S N. Particulars of Remuneration
Independent DirectorsTotal
AmountShri Sisir Kumar Appikatla
Shri Deepak Krishnan (w.e.f. 23.01.2019)
1
FeeforattendingboardcommitteemeetingsCommission - - -Others,pleasespecify 135,000.00 15,000.00 1,50,000.00Total(1) 135,000.00 15,000.00 1,50,000.00
S N. Particulars of Remuneration
“Other Non- Executive Directors Shri Saraswati Prasad, IAS,
Smt Rasika Chaube (w.e.f. 16.07.18) Shri T Srinivas, (from 24.05.18 to 16.07.18) &
Shri Sunil Barthwal, IAS (upto 24.05.18)”
Total Amount
2
FeeforattendingboardcommitteemeetingsCommission - -Others,pleasespecify - -Total (2) - - - Total (B)=(1+2) - - 1,50,000.00Total Managerial Remuneration - - 1,50,000.00
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MECON Limited
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD
SN.Particulars of Remuneration Name of Key Managerial Personnel Total
AmountName & Designation CEO Company Secretary CFO1 Gross salary
-NA-
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961
(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961
2 StockOption3 SweatEquity4 Commission
-as%ofprofit-others,specify
5 Others,pleasespecifyTotal
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Section of the Companies Act
Brief Description
Details of Penalty /
Punishment/ Compounding fees imposed
Authority [RD / NCLT/
COURT]
Appeal made, if any (give
Details)
A. COMPANYPenalty
NILPunishmentCompoundingB. DIRECTORSPenalty
NILPunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenalty
NILPunishmentCompounding
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MECON
ANNEXURE-A
(Pursuant to Clause (h) of sub section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
------------------------------------------------------------------------------------------------------------------
Form for disclosure of particulars of contracts/ arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
1. Detailsofcontractsorarrangementsortransactionsnotatarm’slengthbasis
(a) Name(s)oftherelatedpartyandnatureofrelationship NIL
(b) Natureofcontracts/arrangements/transactions NA
(c) Durationofthecontracts/arrangements/transactions NA
(d) Salienttermsofthecontracts/arrangementsortransactionsincludingthevalue,ifany
NA
(e) Justificationsforenteringintosuchcontactsorarrangementsortransactions NA
(f) Date(s)ofapprovaloftheBoard NA
(g) Amountpaidasadvance,ifany NA
(h) Date on which the special resolution was passed in the general meeting asrequiredunderfirstprovisotosection188
NA
2. Detailsofmaterialscontactsorarrangementsortransactionsatarm’slengthbasis
a) Name(s)oftherelatedpartyandnatureofrelationship NIL
b) Natureofcontracts/arrangements/transactions NA
c) Durationsofthecontracts/arrangements/transactions NA
d) Salient terms of the contracts or arrangements or transactions including thevalue,ifany
NA
e) Date(s)ofapprovaloftheBoard,ifany NA
f) Amountpaidasadvance,ifany NA
AtulBhatt ChairmanandManagingDirector
FORM AOC- 2
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MECON
MECON Limited
APPENDIX- II
1. a) Brief Outline of CSR & Sustainability Policy of MECON Limited
� The CSR & Sustainability policy of your Company is in accordance with the provisionsof the Companies Act, 2013 and DPE guidelines and is approved by the Board based onthe recommendation of the CSR & Sustainability Committee. The Board approved CSR &Sustainability Policy of the Company is available at www.meconlimited.co.in/Writereaddata/Downloads/CSR_Policy.pdf
� YourCompanyhastwo-tierorganizationalstructuretosteertheCSRagenda.TheBoardLevelCSR&SustainabilityCommitteecomprisingofaPartTimeIndependentDirectorasChairmanandtwofunctionalDirectorsasMembersandateamofcross-sectionofemployees,headedbyaNodalOfficerconstitutesthetwo-tierorganizationstructure.
� TheannualbudgetforCSRandSustainabilityisapprovedbyBoardofDirectors.
� TheCSRplansareformulatedandapprovedbyCSR&SustainabilityCommitteeandratifiedbyBoardofDirectors,aspertheprovisionofCompaniesAct,2013andDPEguidelines.
� YourCompanyspendsineachfinancialyear,atleast2.0%oftheaveragenetprofitsmadeduringthe three immediatelyprecedingfinancial years.Anyunspent/unutilized fundof aparticularyear,iscarriedforwardtothefollowingyear.
� TheoverallresponsibilityofCSRplanslieswiththeNodalOfficer,CSR&Sustainability.
� TheCSR&SustainabilityactivitiesofyourCompanyareasperSchedule-VIItotheCompaniesAct,2013,with special attention to thedevelopmentofweaker/marginalized/underprivilegedsectionsof the society includingSC/ST/OBC/Minorities,womenandchildren,oldandaged,physicallychallengedetc.
� AlltheCSRactivitiesareimplementedinprojectmode.
� YourCompanyhavingexpertiseinEngineeringandProjectManagement,alltheCSRprojectsaremonitoredbytheCompanyitself.
� TheimplementationandmonitoringofCSRactivitiesareoverseenbytheCSR&SustainabilityCommittee.
� AsperBoard’sapprovedCSR&Sustainabilitypolicy,ImpactAssessmentforallcompletedCSRprojects/activitiesuptoprojectcostof₹50.0lakharecarriedoutbytheCompany.However,whereprojectcostexceedsof₹50.0lakh,theImpactAssessmentiscarriedoutbyexternalagency.
� YourCompany reports / disclosesCSR activities to stakeholders through its official website:www.meconlimited.co.in/csr.aspxanditsAnnualReportat:www.meconlimited.co.in/Annual_Report.aspx.
b) ThedetailsofCSRProjectsapprovedbytheBoardofDirectorsisavailableatwww.meconlimited.co.in/csr_activities_planned.aspx
c) ThemainhighlightsofCSRProjects/ActivitiesundertakenbyyourCompanyduringtheyearareasfollows:
i) Sanitation(SwachhBharatAbhiyan)
ii) Healthcare
iii) DrinkingWater
iv) Education
v) SkillDevelopment&Livelihood
CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY
34
MECON
vi) SocialWelfare
vii) RuralDevelopment
viii)Otheractivities/MiscellaneousPrograms
2. Composition of the CSR Committee
� ThelastreconstitutedCSR&SustainabilityCommitteewhichwasinplaceason31.03.2019,consistsofthefollowingDirectors:
i) ShriSisirKumarAppikatla
PartTimeIndependentDirector
ii) ShriPradiptaKumarSarangi
Director(Technical)
iii) ShriRajendraHarbhagwanSinghJuneja
Director(Finance)
ThedetailsonlatestreconstitutedCSR&SustainabilityCommitteeisavailableatwww.meconlimited.co.in/Board_level_comitte_csr.aspx
3. a) Net Profit for CSR for the last 3 financial years are as follows :
2015-16 : ₹(-)17,496.18 Lakh2016-17 : ₹(-) 8,815.32 Lakh2017-18 : ₹ 4,397.97 Lakh
b) AverageNetProfitforthelast3financialyears : ₹(-)7,304.51Lakh
4. a) Funds allocable towards CSR expenditure for the : NIL FinancialYear2018-19(AsperSection-135of TheCompaniesAct,2013)
b) FundsallocatedtowardsCSRexpenditure : ₹87.96Lakh fortheFinancialYear2018-19 {2%ofAdjustedPBT(i.e.,Rs.4,397.97Lakh)for FY2017-18asperDPEGuidelines}
5. DetailsofCSRfundspentduringthefinancialyear2018-19,areindicatedinAnnexure-I. Mannerinwhichtheamountspentareasgivenbelow:
a) Totalamountavailableforthefinancialyear2018-19:
i) Unspent(Carry-over)fund : ₹456.07Lakh*
ii) Allocationforfinancialyear2018-19 : ₹87.96Lakh
Totalamount: ₹544.03Lakh
(*) Refer Note 40.20 “Disclosure on CSR” reported under Financial Statement in the Annual Report of the Company for the FY 2017-18
b) TotalamountspentonCSRactivitiesduringthefinancialyear2018-19 : ₹16.92Lakh
c) Amountunspent(tobecarriedtonextfinancialyear(i.e.FY2019-20) : ₹527.11Lakh
6. Reasons for not spending the amount:
6.1 ThemajorityofCSRprojects/activitiesareinfrastructuredevelopmentprojectswhichtaketimeinconceivingtheproject,carryingoutbasicdesign&detailedengineering,tendering,andthenconstruction,etc.
6.2 ThefollowingprojectsaslistedbelowcouldnotbecompletedinFY2018-19duetothereasonsasindicated:
35
MECON
MECON Limited
i) ConstructionofBoysHostelBuildinginOrphanageatVillage-Sungi,Khunti[Sl.No.4(i)ofListofCarry-overProjectsforFY2018-19]:
DuringFY2017-18,thetenderfortheaboveprojectwasinvitedinFebruary’2018.However,astheL1partyhadquoted thepricewhichwas veryhigh compared to the approved cost estimate, thetenderwascancelledinJuly’2018.TheprojectwasretenderedinOctober’2018andtheWorkOrderwasplacedonContractorinMarch’2019.Theconstructionworkatsiteisunderprogress.
ii) ConstructionofBorewellatOldAgeHome,Nagri,Ranchi[Sl.No.4(ii)ofListofCarry-overProjectsforFY2018-19]:
ThetenderfortheaboveprojectwasinvitedinAugust’2018.Inspiteofextendingtheduedateoftendersubmissiontwice,noofferwasreceived.ThetenderwasagaininvitedwithrevisedEligibilityCriteriainOctober’2018.Despiteextendingthedateofsubmissiontwice,onlyoneofferwasreceivedandtheWorkOrdercouldbeplacedontheContractorattheendofMarch’2019.Workisunderprogress at site.
iii) ConstructionofCommunityCentreinUP[Sl.No.4(iii)ofListofCarry-overProjectsforFY2018-19]:
RegularremindersweresenttoM/sHSCL(AsubsidiaryofNBCC)tocompletethebalanceworkofaboveprojectandsubmittheirbillsinlinewithGSTalongwithAnti-profiteeringdeclaration,buttheyareyettosubmitthesame.
iv) AlltheprojectsmentionedbelowarecompleteandhandedovertotheBeneficiaries.Thefinalbillsofsameareunderprocessingforreleaseofpayment.
a) ConstructionofToiletBlockinVillageSchoolofAdoptedVillage-Pancha[Sl.No.5(i)ofListofCarry-overProjectsforFY2018-19]
b) ConstructionofToiletComplexinAdoptedVillage-Pancha[Sl.No.5(ii)ofListofCarry-overProjectsforFY2018-19]
c) ConstructionofToiletBlockforGirlsinOrphanageofAdoptedVillage-Sungi[Sl.No.5(iv)ofListofCarry-overProjectsforFY2018-19]
d) ConstructionofToiletBlockforBoysinOrphanageofAdoptedVillage-Sungi[Sl.No.5(v)ofListofCarry-overProjectsforFY2018-19]
v) ConstructionofToiletComplexinAdoptedVillage-ParsaToli,Pancha[Sl.No.5(iii)ofListofCarry-overProjectsforFY2018-19]
TheContractorhassubmittedthe5thRAbill,whichisunderprocessingforreleaseofpayment.
vi) Constructionof1no.ofClassroominRuralareaofUP[Sl.No.5(vi)ofListofCarry-overProjectsforFY2018-19]
RegularremindersweresenttoM/sHSCL(AsubsidiaryofNBCC)tocompletethebalanceworkofaboveprojectandsubmittheirbillsinlinewithGSTalongwithAnti-profiteeringdeclaration,buttheyareyettosubmitthesame.
vii) a) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Nagri,Ranchi[Sl.No.1(i)ofListofNewProjectsforFY2018-19]:
b) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Sungi,Block-Karra,Dist.-Khunti[Sl.No.1(ii)ofListofNewProjectsforFY2018-19]
c) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Rai,Block-Khunti,Dist.-Khunti[Sl.No.1(iii)ofListofNewProjectsforFY2018-19]
Thetenderfortheaboveprojectswere invited inNovember’2018.InMarch’2019, theofferswereunderadvancedstageofscrutinyandrecommendation.
viii) ProjectSmile:CleftlipandPalatesurgeryforpoor/down-trodden/needypatients[Sl.No.2(i)ofListofNewProjectsforFY2018-19]
36
MECON
Theinvoice(s)/bill(s)forCleftlipandPalatesurgerycarriedoutinrespectoffourpatientsareawaitedfromM/sAkilaBharathaMahilaSevaSamaj,Bengaluru.
ix) ConstructionofToiletComplexatAdoptedVillage–BarToli,Pancha,Block-Bundu,Dist.-Ranchi[Sl.No.3(i)ofListofNewProjectsforFY2018-19]:
Thetender for theaboveprojectswere invited inDecember’2018. InMarch’2019, theofferswereunderadvancedstageofscrutinyandrecommendation.
7.0 TheimplementationandmonitoringofCSRPolicy,isincompliancewithCSRobjectivesandpolicyofthecompany.
8.0 i) It is also affirmed that all the applicable clauses of Guidelines issued by DPE vide OM No.:15(13)/2013-DPE(GM)dated:21.10.2014isbeingcompliedwith.
ii) AspertheguidelinesissuedbytheDepartmentofPublicEnterprises,MinistryofHeavyIndustries&PublicEnterprisesvide ref.No.CSR-08/0002/2018-Dir (CSR)dtd.10.12.2018 for taking themebasedinterventioninSchoolEducation&HealthcareareainAspirationalDistricts(asidentifiedbyNITIAayog),yourCompanyidentifiedprojectsrelatedtoconstructionofDrinkingwaterfacilitiesinAdoptedvillagesofRanchi&KhuntiDistrictsof Jharkhand(plannedasHealthcare)andCleftLip&PalateSurgeryforpoor/downtrodden/needypeopleatVisakhapatnam,andwhichareunderprogress.
Pradipta Kumar Sarangi Director(Technical)
Sisir Kumar Appikatla Chairman(CSRCommittee)
37
MECON
MECON Limited
ME
CO
N L
IMIT
ED
C
orpo
rate
Soc
ial R
espo
nsib
ility
and
Sus
tain
abili
ty
Sum
mar
y of
Pla
nned
Exp
ense
s for
On-
Goi
ng R
egul
ar/C
arry
-Ove
r Pro
ject
s und
er Im
plem
enta
tion
and
New
Pro
ject
s for
FY
201
8-19
Appe
ndix-A
SI.
No.
Proj
ects
Item
no.
of
Sche
dule
-VII
Plan
ned
Rec
urri
ng
expe
nses
on
On-
goin
g R
egul
ar
(Com
mitt
ed) a
ctiv
ity
(In
Rs.
Lakh
s)
Plan
ned
Expe
nses
on
Car
ry-o
ver
proj
ects
(I
n R
s. La
khs)
Plan
ned
Expe
nses
on
New
Pro
ject
s of
2018
-19
(In
Rs.
Lakh
s)
Tota
l Pla
nned
Ex
pens
es(I
n R
s. La
khs)
Rem
arks
1Sa
nitatio
n(i)
0.00
02.97
00.00
02.
970
2Drin
king
water
(i)0.00
00.00
040
.000
40.0
00
3Hea
lthca
re(i)
2.00
00.00
04.50
06.
500
4Ed
ucat
ion
(ii)
3.87
00.50
00.00
04.
370
5Sk
illdev
elop
men
tand
Livelih
ood
(ii)
3.80
01.92
00.00
05.
720
6So
cialW
elfare
(iii)
0.00
058
.350
0.00
058
.350
7Ru
rald
evelop
men
t(x
)0.00
072
.989
23.500
96.4
89
8Oth
erA
ctiviti
es/M
iscellane
ousP
rogr
ams
13.600
1.00
00.00
014
.600
TOTA
L23
.27
137.
7368
.00
229.
00
Not
e:
�
Theov
eralle
xpen
ditu
reon
On-
Goi
ngR
egul
arP
rojects/Car
ry-O
verP
rojects/New
Pro
jectss
hallbe
lim
itedto
theto
talf
undav
ailable
₹ 22
9.00
lakh
s.
38
MECON
ME
CO
N L
IMIT
ED
C
orpo
rate
Soc
ial R
espo
nsib
ility
and
Sus
tain
abili
tyLi
st o
f “O
n-G
oing
Reg
ular
Pro
ject
s” u
nder
Impl
emen
tatio
n fo
r FY
201
8-19
Sl.
No.
Proj
ects
Item
no
. of
Sche
dule
-V
II
Fina
ncia
l Pr
ogre
ss
Targ
et (%
) in
FY 2
018-
19
Proj
ect
Cos
t(I
n R
s. La
khs)
Plan
ned
Rec
urri
ng
expe
nses
on
On-
goin
g R
egul
ar
(Com
mitt
ed)
activ
ity(I
n R
s. La
khs)
Rem
arks
From
To1
Hea
lthca
rei)
Hea
lthC
amps
(i)0
100
2.00
02.00
0On-
goin
gre
gulara
ctivity
Sub-
Tota
l (1)
2.00
02.
000
2Ed
ucat
ion
i)Hon
orar
ium
toTea
cher
sof1
3Com
mun
ityE
duca
tion
Cen
tres
(ii)
010
03.12
03.12
0On-
goin
gre
gulara
ctivity
ii)Stud
yM
ater
ials,
Statio
nery
,Plasticm
at(Cha
tai)
etc.
forCom
mun
ityE
duca
tion
Cen
tres
(ii)
010
00.75
00.75
0On-
goin
gre
gulara
ctivity
Sub-
Tota
l (2)
3.87
03.
870
3Sk
ill d
evel
opm
ent a
nd L
ivel
ihoo
di)
Hon
orar
ium
toTea
cher
sof1
0St
itchi
ngC
entres
(ii)
010
02.40
02.40
0On-
goin
gre
gulara
ctivity
ii)Cloth
,Stit
chin
ingM
ater
ials,
Plasticm
at(C
hatai)
forS
tude
ntso
fStit
chin
gCen
tres
fo
rTra
inin
g(ii
)0
100
0.40
00.40
0On-
goin
gre
gulara
ctivity
iii)
Ann
ualE
xam
inatio
nof
10St
itchi
ng&
Em
broi
dery
Cen
tres
(ii)
010
01.00
01.00
0On-
goin
gre
gulara
ctivity
Sub-
Tota
l (3)
3.80
03.
800
4O
ther
Act
iviti
es/M
isce
llane
ous P
rogr
ams
i)En
gage
men
tofP
hoto
grap
hera
ssup
portin
gstaff
1.75
01.75
0On-
goin
gre
gulara
ctivity
ii)To
urs&
trav
elsf
orm
onito
ring,si
tesu
perv
ision
etc.o
fpro
jects
2.00
02.00
0On-
goin
gre
gulara
ctivity
iii)
Traini
ngofC
SRem
ploy
ees&
assoc
iated
person
nelf
orcap
acity
bui
ldin
g;Sem
inar,
CSR
Faire
tc.
2.60
02.60
0On-
goin
gre
gulara
ctivity
iv)
Prin
tedstatio
nery
,Ban
ners,S
ignb
oard
setc.
0.25
00.25
0On-
goin
gre
gulara
ctivity
v)Oth
erw
elfare
pro
jects/ac
tiviti
es;M
iscellane
ousp
rogr
amm
es7.00
07.00
0On-
goin
gre
gulara
ctivity
Sub-
Tota
l (4)
13.6
0013
.600
TOTA
L23
.270
23.2
70
Appe
ndix-B
39
MECON
MECON Limited
ME
CO
N L
IMIT
ED
C
orpo
rate
Soc
ial R
espo
nsib
ility
and
Sus
tain
abili
tyLi
st o
f “C
arry
-Ove
r Pro
ject
s” u
nder
Impl
emen
tatio
n fo
r FY
201
8-19
Appe
ndix-C
Sl.
No.
Proj
ects
Item
no
. of
Sche
dule
-VI
I
Fina
ncia
l Pr
ogre
ss T
arge
t (%
) in
FY 2
018-
19
Proj
ect
Cost
(in
Rs.
La
khs)
Expe
nses
do
ne in
FY
12-
13,
13-1
4, 1
4-15
, 15-
16,
16-1
7 &
17
-18
(in
Rs.
Lak
hs)
Plan
ned
Expe
nses
on
Carr
y-ov
er p
roje
cts
(In R
s. L
akhs
)R
emar
ks
From
ToU
nder
In
itiat
ion
stag
e/
Man
agem
ent
Appr
oval
st
age
Und
er
Tend
erin
g/O
rder
ing
stag
e
Und
er
cons
truc
tion
stag
e/bi
lling
st
age
Sub-
Tota
l
Activ
eLe
ss
Activ
e
1Sa
nita
tion
i)Co
nstr
uctio
n of
Toi
let B
lock
s / R
epai
r of
dis-
func
tiona
l Toi
lets
in M
HR
D s
choo
ls
in M
HR
D S
choo
ls in
Jha
rkha
nd (
unde
r Sw
achh
Vid
yala
ya A
bhiy
an)
(i)90
.31
100
57.3
356
.36
0.97
0.97
Proj
ect o
f FY
2014
-15
ii)An
nual
Mai
nten
ance
of 3
6 no
s. B
io-
Toile
t / P
urch
ase
of B
io-M
edia
Kit
(i)0
100
1.00
1.00
1.00
Proj
ect o
f FY
2017
-18
iii)
Annu
al M
aint
enan
ce o
f 36
nos.
Bio
-To
ilet /
Pur
chas
e of
Bio
-Med
ia K
it(i)
010
01.
001.
001.
00Ad
ditio
nal f
und
requ
irem
ent f
or S
l. N
o.
1 ii)
for
com
plet
ion
of
alre
ady
appr
oved
pro
ject
of
FY 2
017-
18.
Sub-
Tota
l (1)
59.3
32.
000.
000.
000.
972.
97
2Ed
ucat
ion
i)St
udy
mat
eria
ls,
Stat
ione
ry,
etc.
fo
r Co
mm
unity
Edu
catio
n Ce
ntre
s(ii
)0
100
0.50
0.00
0.00
0.00
0.00
0.50
0.50
Proj
ect o
f FY
2017
-18
Sub-
Tota
l (2)
0.50
0.00
0.50
0.00
0.00
0.50
3Sk
ill D
evel
opm
ent
i)Cl
oths
, Stit
chin
g M
ater
ials
for S
tude
nts
of S
titch
ing
Cent
res
for
Trai
ning
(ii)
010
00.
750.
000.
000.
000.
000.
750.
75Pr
ojec
t of F
Y 20
17-1
8 Cont
d...
40
MECON
Sl.
No.
Proj
ects
Item
no
. of
Sche
dule
-VI
I
Fina
ncia
l Pr
ogre
ss T
arge
t (%
) in
FY 2
018-
19
Proj
ect
Cost
(in
Rs.
La
khs)
Expe
nses
do
ne in
FY
12-
13,
13-1
4, 1
4-15
, 15-
16,
16-1
7 &
17
-18
(in
Rs.
Lak
hs)
Plan
ned
Expe
nses
on
Carr
y-ov
er p
roje
cts
(In R
s. L
akhs
)R
emar
ks
From
ToU
nder
In
itiat
ion
stag
e/
Man
agem
ent
Appr
oval
st
age
Und
er
Tend
erin
g/O
rder
ing
stag
e
Und
er
cons
truc
tion
stag
e/bi
lling
st
age
Sub-
Tota
l
Activ
eLe
ss
Activ
e
ii)An
nual
Exa
min
atio
n of
10
nos.
Stit
chin
g &
Em
broi
dary
Ce
ntre
s (P
aym
ent
to
UIL
)
(ii)
010
00.
370.
000.
000.
000.
000.
370.
37Pr
ojec
t of F
Y 20
16-1
7
iii)
Annu
al E
xam
inat
ion
of 1
0 no
s. S
titch
ing
& E
mbr
oida
ry C
entr
es(ii
)0
100
0.82
0.00
0.00
0.00
0.00
0.80
0.80
Proj
ect o
f FY
2017
-18
Sub-
Tota
l (3)
1.94
0.00
0.00
0.00
0.00
1.92
1.92
4So
cial
Wel
fare
i)Co
nstr
uctio
n of
Bo
ys
Hos
tel
in
Orp
hana
ge a
t Vill
.-Su
ngi,
Khun
ti(ii
i)0
100
28.1
00.
000.
0028
.10
0.00
0.00
28.1
0Pr
ojec
t of
FY
20
15-1
6 (F
und
prov
isio
n in
FY
20
15-1
6 :
Rs.
15.
0 la
khs;
in
FY
2016
-17:
Rs.
12.
0 la
kh:
in
FY
2017
-18
Rs.
1.
10 L
akh)
ii)Co
nstr
uctio
n of
Bor
ewel
l at
Old
Age
H
omes
, Nag
ri, R
anch
i(ii
i)0
100
3.25
0.00
0.00
3.25
0.00
0.00
3.25
Proj
ect o
f FY
2017
-18
iii)
Cons
truc
tion
of C
omm
unity
Cen
tre
in
UP
33.4
010
040
.55
13.5
50.
000.
000.
0027
.00
27.0
0Pr
ojec
t of F
Y 20
13-1
4
Sub-
Tota
l (4)
71.9
013
.55
0.00
31.3
50.
0027
.00
58.3
5
5R
ural
Dev
elop
men
t
i)Co
nstr
uctio
n of
Toi
let
Bloc
k in
Vill
age
Scho
ol o
f Ado
pted
Vill
age-
Panc
ha(x
)83
.14
100
42.0
734
.98
0.00
0.00
0.00
07.
097.
09Pr
ojec
t of F
Y 20
12-1
3
ii)Co
nstr
uctio
n of
To
ilet
Com
plex
in
Ad
opte
d Vi
llage
-Pan
cha
(x)
88.7
010
059
.14
52.4
60.
000.
000.
006.
686.
68Pr
ojec
t of F
Y 20
12-1
3
iii)
Cons
truc
tion
of
Toile
t Co
mpl
ex
in
Adop
ted
Villa
ge-P
arsa
Toi
l, Pa
ncha
(x)
44.1
910
059
.14
26.1
30.
000.
000.
0033
.01
33.0
1Pr
ojec
t of F
Y 20
12-1
3 Cont
d...
41
MECON
MECON Limited
Sl.
No.
Proj
ects
Item
no
. of
Sche
dule
-VI
I
Fina
ncia
l Pr
ogre
ss T
arge
t (%
) in
FY 2
018-
19
Proj
ect
Cost
(in
Rs.
La
khs)
Expe
nses
do
ne in
FY
12-
13,
13-1
4, 1
4-15
, 15-
16,
16-1
7 &
17
-18
(in
Rs.
Lak
hs)
Plan
ned
Expe
nses
on
Carr
y-ov
er p
roje
cts
(In R
s. L
akhs
)R
emar
ks
From
ToU
nder
In
itiat
ion
stag
e/
Man
agem
ent
Appr
oval
st
age
Und
er
Tend
erin
g/O
rder
ing
stag
e
Und
er
cons
truc
tion
stag
e/bi
lling
st
age
Sub-
Tota
l
Activ
eLe
ss
Activ
e
iv)
Cons
truc
tion
of T
oile
t Blo
ck fo
r G
irls
in
Orp
hana
ge o
f Ado
pted
Vill
age-
Sung
i(x
)71
.55
100
35.3
725
.31
0.00
0.00
0.00
10.0
610
.06
Proj
ect o
f FY
2013
-14
v)Co
nstr
uctio
n of
Toi
let B
lock
for B
oys
in
Orp
hana
ge o
f Ado
pted
Vill
age-
Sung
i(x
)60
.27
100
35.5
721
.44
0.00
0.00
0.00
14.1
314
.13
Proj
ect o
f FY
2014
-15
vi)
Cons
truc
tion
of 1
no.
of C
lass
roo
m in
R
ural
are
a of
UP
(x)
73.4
310
07.
605.
580.
000.
000.
002.
022.
02Pr
ojec
t of F
Y 20
12-1
3
Sub-
Tota
l (5)
238.
890.
000.
0072
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9
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ther
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iviti
es/M
isce
llane
ous
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ram
s
i)Ex
hibi
tion-
cum
-Cra
ft M
ela
for c
entr
es,
villa
ges
etc.
1.00
1.00
0.00
0.00
0.00
1.00
Proj
ect o
f FY
2015
-16
Sub-
Tota
l (6)
1.00
1.00
0.00
0.00
0.00
1.00
TOTA
L3.
0031
.85
0.00
102.
8813
7.73
42
MECON
ME
CO
N L
IMIT
ED
Cor
pora
te S
ocia
l Res
pons
ibili
ty a
nd S
usta
inab
ility
List
of “
New
Pro
ject
s” fo
r FY
201
8-19
Appe
ndix-D
Sl.
No.
Proj
ects
Item
no.
of
Sche
dule
-VII
Fina
ncia
l Pro
gres
s Tar
get
(%) i
n FY
201
8-19
Proj
ect C
ost
(in R
s. La
khs)
Plan
ned
Expe
nses
on
New
Pro
ject
s of 2
018-
19 (I
n R
s. La
khs)
Rem
arks
From
To
1D
rink
ing
wat
er
i)So
lar
power
edD
rinki
ngw
ater
sys
tem
in
Ado
pted
Vill
age-
Nag
ri,R
anch
i.(i)
010
014
.00
14.00
New
pro
ject
ii)So
lar
power
edD
rinki
ngw
ater
sys
tem
in
Ado
pted
Vill
age-
Sung
i,Bl
ock-
Kar
ra,D
ist.-K
hunt
i(i)
010
013
.00
13.00
New
pro
ject
iii)
Solar
power
edD
rinki
ngw
ater
sys
tem
in
Ado
pted
Vill
age-
Rai,Bl
ock-
Khu
nti,Dist
.-Khu
nti
(i)0
100
13.00
13.00
New
pro
ject
Sub-
Tota
l (2)
40.0
040
.00
2H
ealth
care
i)Pr
ojec
tSm
ile:
Cleft
lipand
Palatesu
rger
yfo
rpo
or/
down-
trod
den/
need
ypa
tient
s(i)
010
03.50
3.50
New
pro
ject
ii)Catar
act
surg
ery
for
poor
/dow
n-trod
den
need
yvilla
gers
(i)0
100
1.00
1.00
Sub-
Tota
l (3)
4.50
4.50
3Ru
ral d
evel
opm
ent
i)Con
stru
ctio
nof
Toi
letCom
plex
in
adop
ted
Vill
age
BarT
oli,Pa
ncha
,Blo
ck-B
undu
,Dist
-Ran
chi
(x)
010
023
.50
23.50
Sub-
Tota
l (4)
23.5
023
.50
TOTA
L68
.00
68.0
0
43
MECON
MECON Limited
ANNEX
URE
-I
MA
NN
ER
(D
ET
AIL
S O
F T
HE
PR
OJE
CT
) IN
WH
ICH
TH
E A
MO
UN
T S
PE
NT
D
UR
ING
TH
E F
INA
NC
IAL
YE
AR
20
18-1
9(P
erio
d A
pril’
2018
– M
arch
’201
9)(A
s on:
31.
03.2
019)
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
1.Sa
nita
tion
(Sw
achh
Vidy
alay
a –
Swac
hh B
hara
t Abh
iyan
in M
HR
D S
choo
ls)
i)Co
nstr
uctio
n of
Toi
lets
in
MH
RD
Sc
hool
s of
Jh
arkh
and
(und
er
Swac
hhVi
dyal
ayaA
bhiy
an)
(Car
ry-o
ver
proj
ect
of F
Y 20
15-
16)
[Pro
ject
Cos
t : (
Toile
ts)
:
` 57
,33,
000/
-]
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e
- Sa
nita
tion
10
nos.
in
R
anch
i&D
eogh
ar
dist
ricts
of J
hark
hand
96,6
20—
1,80
,040
(in F
Y 14
-15)
+
46,2
2,85
0(in
FY
15-1
6) +
8,33
,490
(in F
Y 16
-17)
= 56
,36,
380
2,31
,585
Wor
k co
mpl
ete
a)
Phys
ical
pr
ogre
ss
– 10
0%b)
Fi
nanc
ial
prog
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–
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1%c)
Pe
rfor
man
ce
Cert
ifica
te
awai
ted
from
Con
trac
tor.
ii)An
nual
M
aint
enan
ce
of
36
nos.
Bi
o-To
ilets
/ Pu
rcha
se
of
Bio-
Med
ia K
it
Sani
tatio
n12
nos
. in
Haz
arib
agh
and
24
nos.
in
Loha
rdag
a D
istr
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of
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khan
d
2,00
,000
89,9
6589
,965
Dire
ctW
ork
com
plet
e
a)
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pr
ogre
ss
– 10
0%b)
Fi
nanc
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prog
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–
100%
Sub-
Tota
l (1)
2,96
,620
89,9
6557
,26,
345
*Not
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rColum
n6-A
llex
pend
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sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
44
MECON
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
2.H
ealth
care
i) H
ealth
cam
ps in
Mob
ile A
mbu
lanc
e Va
n w
ith
a te
am
of
doct
ors,
pa
ram
edic
al
staf
f et
c.
alon
gwith
m
edic
ines
for
fre
e he
alth
che
ck-
up, w
here
in m
edic
ines
wer
e gi
ven
to th
e po
or &
nee
dy p
atie
nts
Hea
lthca
rei)
Mob
ile
Hea
lth
cam
ps
with
a
team
of
do
ctor
s,
para
med
ical
st
aff
etc.
al
ongw
ith
med
icin
e fo
r fr
ee
heal
th
chec
k-up
&
m
edic
ines
w
ere
give
n to
th
e po
or
&
need
y pa
tient
s at
Vi
ll.-
Gan
yor
Toli,
Ja
gann
athp
ur,
CSR
Pa
vilio
n, S
hyam
ali i
n pr
oper
&
nea
r Ran
chi;V
ill,-
Pan
cha,
Bl
ock
- Bu
ndu;
Vill
.-R
upru
, Bl
ock
– An
gara
in
Ran
chi
dist
rict a
nd V
ill.-
Rai
and
Vill
– Aa
mjh
aria
&Vi
ll.-
Sung
i, Bl
ock
– Ka
rrai
n Kh
unti
Dis
tric
t of J
hark
hand
2,00
,000
2,31
,585
2,31
,585
Dire
ct1)
R
egul
ar o
n-go
ing
proj
ect
a)
Phys
ical
pr
ogre
ss
– 10
0%b)
Fi
nanc
ial
prog
ress
–
100%
2)
No.
of H
ealth
Cam
ps :
95
No.
of P
atie
nts
: 4,4
64
ii)Pr
ojec
t SM
ILE
: Cle
ft Li
p an
d Pa
late
Su
rger
y fo
r po
or/
dow
ntro
dden
/ ne
edy
patie
nts
Hea
lthca
reAt
Vi
sakh
apat
nam
, A.
P.
thro
ugh
Akila
Bha
rath
a M
ahila
Se
va
Sam
aja,
Ko
ram
anga
la,
Bang
alor
e, K
arna
taka
3,50
,000
——
Bills
aw
aite
d fo
r 4
nos.
pa
tient
s.
Appl
icat
ion
for
rem
aini
ng 1
6 no
s. p
atie
nts
awai
ted
from
ABM
SS.
iii)
Cata
ract
Su
rger
y fo
r po
or/
dow
ntro
dden
/nee
dy v
illag
ers
Hea
lthca
reVi
llage
– P
anch
a, B
lock
– B
undu
, Ta
imar
a, D
istr
ict -
Ran
chi
2,55
,500
1,50
,575
1,50
,575
Wor
k co
mpl
eted
.
Sub-
Tota
l (2)
8,05
,500
3,82
,160
3,82
,160
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
45
MECON
MECON Limited
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
3.
Drin
king
Wat
er
i)So
lar
pow
ered
D
rinki
ng
Wat
er
Syst
em in
Ado
pted
Vill
age
Drin
king
W
ater
Villa
ge
– Aa
mjh
aria
, Su
ngi,
Bloc
k –
Karr
a, D
istr
ict –
Khu
nti,
Stat
e -
Jhar
khan
d
13,0
0,00
0—
—In
adv
ance
sta
ge o
f Ten
derin
g
ii)So
lar
pow
ered
D
rinki
ng
Wat
er
Syst
em in
Ado
pted
Vill
age
Drin
king
W
ater
Villa
ge
– R
ai,
Panc
haya
t –
Fudi
, D
istr
ict
– Kh
unti,
Sta
te -
Jh
arkh
and
13,0
0,00
0—
—In
adv
ance
sta
ge o
f Ten
derin
g
iii)
Sola
r po
wer
ed
Drin
king
W
ater
Sy
stem
in A
dopt
ed V
illag
eD
rinki
ng
Wat
erVi
llage
–P
andu
toli,
Bl
ock
– N
agri,
Dis
tric
t –
Ran
chi,
Stat
e -
Jhar
khan
d
14,0
0,00
0—
—In
adv
ance
sta
ge o
f Ten
derin
g
Sub-
Tota
l (3)
40,0
0,00
0—
—
4.Ed
ucat
ion
i)Fr
ee L
itera
cy p
rogr
amm
e fo
r th
e un
der
priv
ilege
d ch
ildre
n at
13
Co
mm
unity
Edu
catio
n Ce
ntre
s
• H
onor
ariu
m to
teac
hers
• St
udy
mat
eria
ls,
Stat
ione
ry,
etc.
(FY
201
7-18
)
• St
udy
mat
eria
ls,
Stat
ione
ry,
etc.
(FY
201
8-19
)
#Pur
chas
e of
pla
stic
mat
s
Educ
atio
n Vi
ll.-
Obe
ria,
Vill.
- G
anyo
rTol
i, Vi
ll.-P
okha
rTol
i, Ir
gooT
oli
(2
nos.
),
Argo
ra,
Jaga
nath
pur,
R
avid
asM
ohal
la,
Kusa
i, Pa
thar
Koch
a,
Bhar
amTo
li in
pr
oper
& n
ear
Ran
chi;
Vill.
–
Rup
ru, A
ngar
a Bl
ock
of R
anch
i D
istr
ict
&Vi
ll. –
Rai
of
Khun
ti di
stric
t of J
hark
hand
3,12
,000
50,0
00
75,0
00
2,72
,000
32,8
35
7,92
0
2,72
,000
32,8
35
7,92
0
Dire
ct
Reg
ular
on-
goin
g pr
ojec
t
a)
Phys
ical
pro
gres
s –
100%
b) F
inan
cial
pro
gres
s –
100%
Sub-
Tota
l (4)
4,37
,000
3,12
,755
3,12
,755
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
46
MECON
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
5.Sk
ill D
evel
opm
ent &
Liv
elih
ood
i)Fr
ee S
titch
ing
trai
ning
for
und
er
priv
ilege
d w
omen
at
10 s
titch
ing
Cent
res
• H
onor
ariu
m to
teac
hers
• Cl
oths
& S
titch
ing
Mat
eria
ls
for
Prac
tice
Stitc
hing
(2
017-
18 b
atch
)•
Annu
al E
xam
inat
ion
Fees
(F
Y 20
16-1
7)•
Annu
al E
xam
inat
ion
(FY
2017
-18)
:#
Annu
al E
xam
inat
ion
Fees
# O
ther
Exp
endi
ture
rel
ated
to
Exa
min
atio
n M
ater
ial,
Mis
cella
neou
s Ex
pens
es, e
tc.
• Cl
oths
, Stit
chin
g M
ater
ials
etc
. fo
r Tr
aini
ng (
1-19
bat
ch)
# Pu
rcha
se o
f Pla
stic
Mat
s
Wom
en
Empo
wer
men
t Sc
hem
e (E
mpl
oym
ent/
Live
lihoo
d En
hanc
ing
Voca
tiona
l Sk
ills)
Man
i To
la,
Dor
anda
M
istr
i M
ohal
la,
Hin
oo,
Argo
ra,
Path
ar
Koch
a,
Kish
oreg
anj,
Jaga
nnat
hpur
in p
rope
r &
nea
r R
anch
i, Vi
ll.-
Panc
ha,
Bloc
k –
Bund
u &
Vill
.- K
uchh
u, B
lock
-
Orm
anjh
i in
Ran
chi D
istr
ict &
Vi
ll –
Sung
i of K
hunt
i dis
tric
t of
Jhar
khan
d.
2,40
,000
75,0
00
37,0
00
80,0
00
40,0
00
2,26
,000
44,0
75
31,2
80
26,6
9529
,430
6,00
0
2,26
,000
44,0
75
31,2
80
26,6
9529
,430
6,00
0
Dire
ctR
egul
ar o
n-go
ing
proj
ect
a)
Phys
ical
pro
gres
s –
100%
b)
Fina
ncia
l pro
gres
s –
100%
ii)Vo
catio
nal
Trai
ning
in
the
field
of
Elec
tric
al t
echn
icia
n an
d W
eldi
ng
tech
nolo
gy•
Hon
orar
ium
to
staf
f m
embe
rs
(Mar
ch’2
018
of F
Y 20
17-1
8)
Voca
tiona
l Tr
ainin
g Sc
hem
e (E
mpl
oym
ent/
Live
lihoo
d En
hanc
ing
Voca
tiona
l Skil
ls)
VTI,
Shya
mal
i, R
anch
i (J
hark
hand
)
2,90
0
2,90
0
Dire
ct--
Sub-
Tota
l (5)
4,72
,000
3,66
,380
3,66
,380
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
47
MECON
MECON Limited
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
6.So
cial
Wel
fare
i)Co
nstr
uctio
n of
Com
mun
ity C
entr
e(P
roje
ct c
ost:
` 40
,55,
205)
(Car
ry-o
ver
proj
ect
of F
Y 20
13-
14)
Star
t dat
e:
07.0
6.20
13Co
mpl
etio
n da
te:
06.0
4.20
14
(10
mon
ths)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e
Akba
rpur
, D
ist.-
Kanp
ur D
ehat
, St
ate
– U
.P.
27,0
0,59
5—
6,11
,370
(in F
Y 13
-14)
+57
,450
(in F
Y 15
-16)
+6,
62,9
30
(in F
Y 16
-17)
+22
,860
(in F
Y 17
-18)
= 13
,54,
610
Dire
ctCo
nstr
uctio
n w
ork
unde
r pr
ogre
ssa)
W
ork
done
upt
o Ro
of le
vel.
b) P
hysi
cal
prog
ress
–
61.7
9%c)
Fi
nanc
ial
prog
ress
–
33.4
0%d)
Bill
s aw
aite
d fro
m
M/s
HS
CL.
e) B
alan
ce
wor
k :
Doo
rs,
Stai
r’s R
ailin
g, P
lum
bing
, Sa
nita
ry,
Plas
terin
g,
Elec
tric
al,
Pain
ting,
Se
ptic
ta
nk,
Soak
Pi
t, Bo
unda
ry w
all,
Gat
e, e
tc.
ii)Co
nstr
uctio
n of
Bor
e w
ell
at O
ld
Age
Hom
e
Drin
king
W
ater
Vik
asS
amaj
Kal
yanS
anst
han,
Vi
llage
– K
ulgu
, Bl
ock
– N
agri,
D
istr
ict -
Ran
chi
3,25
,000
——
Dire
ctW
ork
Ord
er
plac
ed
on
29,0
3.20
19.
iii)
Cons
truc
tion
of
Boys
H
oste
l in
O
rpha
nage
“An
mol
Base
ra”
(Pro
ject
cos
t: `
35,2
2,00
0)(A
ppro
ved
Proj
ect o
f FY
2015
-16)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e
Villa
ge –
Sun
gi,
Bloc
k –
Karr
a,
Dis
tric
t –
Khun
ti,
Stat
e -
Jhar
khan
d
35,2
2,00
0—
—D
irect
Phys
ical
Pro
gres
s -
1%Fi
nanc
ial P
rogr
ess
– N
IL.
Sub-
Tota
l (6)
65,4
7,59
5—
13,5
4,61
0
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
48
MECON
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
7.R
ural
Dev
elop
men
t
i) Co
nstr
uctio
n of
3
nos.
To
ilet
com
plex
es
(Tot
al P
roje
ct c
ost:
` 1,
60,3
4,71
5/-)
(Car
ry-o
ver p
roje
cts
of F
Y 20
12-1
3)St
art d
ate:
08
.03.
2013
(LO
I)Co
mpl
etio
n da
te:
07.
09.2
013
(6
mon
ths)
(As
per
Wor
k O
rder
)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e -
Sani
tatio
n
1)
Villa
ge R
esid
entia
l Sc
hool
(Pr
anav
anan
d Vi
dya
Man
dir)
, Pan
cha–
(1
4-se
ater
toile
t)2)
Vi
llage
– P
anch
a (1
0-se
ater
to
ilet)
3)
Villa
ge –
Pars
aTol
i, Pa
ncha
(1
0-se
ater
toile
t)Al
l the
abo
ve in
Blo
ck –
Bun
du,
Dis
t – R
anch
i, St
ate
- Jh
arkh
and
46,7
8,19
5—
18,2
7,74
5(in
FY
12-1
3) +
37,3
1,74
0(in
FY
13-1
4) +
7,65
,200
(in F
Y 14
-15)
+37
,52,
600
(in F
Y 15
-16)
+ 5,
01,7
35(in
FY
16-1
7)+
8,23
,090
(in F
Y 17
-18)
= 1,
14,0
2,11
0
Dire
ct1)
Vi
llage
Sc
hool
–
Wor
k co
mpl
ete.
a)
Phys
ical
pro
gres
s –
100%
b)
Fina
ncia
l pr
ogre
ss
– 83
.14%
c)
Fina
l bi
ll un
der
proc
essi
ng
in F
inan
ced)
Bi
lls
for
addi
tiona
l w
ork
unde
r pro
cess
ing
in F
inan
ce.
2)
Vill.
-Pan
cha
– W
ork
com
plet
e.
a)
Phys
ical
pro
gres
s –
100%
b)
Fina
ncia
l pr
ogre
ss
– 88
.70%
c)
Fina
l bi
ll un
der
proc
essi
ng
in F
inan
ced)
Bi
lls
for
addi
tiona
l w
ork
unde
r pr
oces
sing
in
Fi
nanc
e.3)
Vi
ll –
Pars
aTol
ia)
Ph
ysic
al
prog
ress
–
65.7
6%b)
Fi
nanc
ial
prog
ress
–
44.1
9%c)
Ba
lanc
e w
ork:
Pl
umbi
ng,
Sani
tary
, Ele
ctric
s, F
inis
hing
, So
lar P
V Sy
stem
, etc
.
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
49
MECON
MECON Limited
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
ii)Co
nstr
uctio
n of
1 n
o. T
oile
t com
plex
(5-s
eate
r to
ilet)
fo
r Gi
rls
at
Orp
hana
ge H
oste
l (An
mol
Base
ra)
(Pro
ject
cos
t: `
35,3
7,40
5/-)
(Car
ry-o
ver p
roje
ct o
f FY
2013
-14)
Star
t dat
e:
27.0
9.20
13
Com
plet
ion
date
:
26.0
3.20
14
(6m
onth
s)
(As
per
Wor
k O
rder
)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e
- San
itatio
n
Villa
ge –
Sun
gi, B
lock
– K
arra
Dis
t – K
hunt
i, St
ate
– Jh
arkh
and
10,0
6,38
5—
7,95
,590
(in F
Y 13
-14)
+
9,92
,240
(in F
Y 14
-15)
+
7,19
,295
(in
FY
15-1
6)+
23,8
95(in
FY
16-1
7)
= 25
,31,
020
Dire
ctW
ork
com
plet
e
a)
Phys
ical
pro
gres
s –
100%
b)
Fina
ncia
l pro
gres
s –
71.5
5%
c)
Fina
l bill
und
er
proc
essi
ng in
Fin
ance
.
iii)
Cons
truc
tion
of
1 no
.Toi
let
Com
plex
(5
-sea
ter
toile
t)
for
Boys
at
O
rpha
nage
H
oste
l (A
nmol
Base
ra)
(Pro
ject
cos
t: `
35,5
7,00
5/-)
(Car
ry-o
ver p
roje
ct o
f FY
2014
-15)
Star
t dat
e:
04.0
9.20
14
Com
plet
ion
date
: 03
.03.
2015
(6 m
onth
s)
(As
per
Wor
k O
rder
)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e -
Sani
tatio
n
Villa
ge –
Sun
gi, B
lock
– K
arra
Dis
t – K
hunt
i, St
ate
- Jh
arkh
and
14,1
3,28
5—
11,5
3,04
5(in
FY
14-1
5) +
2,26
,525
(in F
Y 15
-16)
+
7,64
,150
(in F
Y 16
-17)
= 21
,43,
720
Dire
ctW
ork
com
plet
ea)
Ph
ysic
al p
rogr
ess
– 10
0%b)
Fin
anci
al p
rogr
ess
– 60
.27%
c)
Fina
l Bill
und
er
proc
essi
ng in
Fin
ance
Se
ctio
n
*Not
efo
rColum
n6-A
llex
pend
iture
sare
Dire
ctexc
epts
hown
unde
rSl.No.8&
9
50
MECON
12
34
56
78
9
Sl.
No.
CSR
Pro
ject
s or
act
ivity
iden
tifie
dSe
ctor
in
whi
ch th
e Pr
ojec
t is
cove
red
Proj
ects
or P
rogr
amm
es
1.
Loca
l are
a or
Oth
ers
2.
Spec
ify th
e st
ate
and
dist
rict
(whe
re p
roje
cts
or p
rogr
amm
es
wer
e un
dert
aken
)
Amou
nt
outla
y (B
udge
t)Pr
ojec
t or
Prog
ram
me
wis
e
Amou
nt s
pent
on
the
proj
ects
or
prog
ram
mes
for
FY 2
018-
19*
Sub-
head
s :
1.
Dire
ct
expe
nditu
re
on p
roje
cts
or
prog
ram
mes
2.
Ove
rhea
ds
Cum
ulat
ive
expe
nditu
re u
pto
the
repo
rtin
g pe
riod
Amou
nt
spen
t: D
irect
or
thro
ugh
impl
e-m
entin
g ag
ency
*
Stat
us o
f the
Pro
ject
iv)
Cons
truc
tion
of
a Cl
assr
oom
at
M
adar
sa A
hle
Sunn
at(P
roje
ct c
ost :
` 7
,60,
677/
-)(C
arry
-ove
r pro
ject
of F
Y 20
12-1
3)St
art d
ate
: 27
.11.
2012
Com
plet
ion
date
: 31
.03.
2013
(4
mon
ths)
(As
per
Wor
k O
rder
)
Infr
astr
uctu
re
Dev
elop
men
t Pr
ogra
mm
e –
Con
stru
ctio
n of
Cla
ssro
om
Villa
ge-R
aiga
on, D
ewar
iya
Alaw
al, D
ist-
Gon
da, S
tate
–
U.P
.
2,02
,135
—3,
54,7
00(in
FY
13-1
4) +
2,03
,840
(in F
Y 14
-15)
=5,5
8,54
0
Dire
ctSo
me
Elec
tric
al w
ork,
gla
ss
fittin
g, f
loor
rep
air,
pai
ntin
g of
gril
l, w
indo
w &
bui
ldin
g,
etc
is p
endi
ng.
a)
Phys
ical
pro
gres
s –
95%
b) F
inan
cial
pro
gres
s– 7
3.43
%
v)Co
nstr
uctio
n of
1
No.
To
ilet
Com
plex
(P
roje
ct c
ost:
` 24
,34,
000)
Sani
tatio
nVi
llage
– B
ar T
oli,
Panc
ha, B
lock
–
Bund
u,
Taim
ara,
D
istr
ict
- R
anch
i
24,3
4,00
0—
—In
adv
ance
sta
ge o
f ten
derin
g pr
oces
s.
Sub-
Tota
l (7)
97,3
4,00
0—
1,66
,35,
390
8.Ad
min
istr
ativ
e/ T
rain
ing
Cost
i)To
urs
& T
rave
ls, T
axi F
are,
etc
.2,
00,0
002,
66,4
202,
66,4
20D
irect
Sub-
Tota
l (8)
2,00
,000
2,66
,420
2,66
,420
9.O
ther
act
iviti
es/M
isce
llane
ous
prog
ram
s
i)M
isce
llane
ous
Expe
nses
suc
h as
-
Enga
gem
ent
of
Phot
ogra
pher
on
con
trac
t, En
try
Fee
for
SCO
PE
Mer
itorio
us A
war
d, e
xpen
ses
on
mis
cella
neou
s ac
tiviti
es, e
tc.
4,23
,500
2,74
,285
2,74
,285
Dire
ct
Sub-
Tota
l (9)
4,23
,500
2,74
,285
2,74
,285
Gran
d To
tal
2,29
,16,
215
16,9
1,96
5
51
MECON
MECON Limited
ANNEXURE–I
TECHNOLOGY ABSORPTIONEffortsmade and benefits derived like product improvement, cost reduction, product development or importsubstitution
Indigenously developed Technology
Sl. No.
Efforts made towards technology absorption
Benefits derived like product improvement, cost reduction, product development
1 Development of Torpedo Ladle Carmonitoring system using InfraredImaging.
Thetechnologyaimsatprovidingthefollowingbenefits.
1. Increasingsafetyandaveragelifeoftorpedoladle.
2. Preventionoftorpedoladlebreakoutbyearlydetectionofaffected areas.
3. Reductionofproductioncostby increasing service lifeoftorpedorefractory.
4. Advanceddatamanagementandanalysiswiththehelpofdatabaseoftorpedoladle.
2 Development of hydraulic tiltingrunner for hot metal evacuationin retro-fitting mini blast furnaceupgradation
In most of the existing smaller blast furnaces the hot metal isdirectlypouredintoopentopladlesthroughspoutsandtheladlesaremaneuveredusingcranes.This isamajorbottleneckinday-to-daycasthouseoperationandmaintenance.YourCompanyhasdesigned in-house indigenous tilting runner which is operatedhydraulically as inmodern large blast furnaces. For retrofittingthiskindoftiltingrunnerinsmallerandolderblastfurnaces,yourCompanyhasalsoincorporatedTransfercarforladlepositioningandmaneuvering. For blast furnaces that are already equippedwith motorized tilting runner, the incorporation of hydrauliccylinderbasedtiltingrunnerofferssignificantadvantagesintermsofoperation,maintenanceandreliability.Thesystemisalreadyinoperationsuccessfullyatoneinstallation.
Your Company with its in-house research and design is fullyprepared toprovide the industrywith innovative solutions suchas hydraulic tilting runner alongwith transfer car arrangementin existing Blast Furnace installations to improve the overallefficiency.
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ANNEXURE-II
1.0 INTRODUCTION
ThegrowthsagaofMECONcontinueswithorderbookcrossing₹3000Croremark for the lastfinancialyear.ThishasbeenmadepossiblebyleveragingtheexistingcapabilitiestoexplorenewareaslikestrategicminingareasandharnessingfullpotentialofOil&GasandInfrastructureprojectsapartfromconsolidatingthepositionintraditionalmetalsectorwhereinyourcompanyisbringingcuttingedgetechnologyforvariousclientsthroughstrategicpartnershipswithglobaltechnologysuppliers.
Your company ismaking serious endeavors to expand its global outreach through extensive participation ininternationalsummits&businessmeetsandbringinginternationalexposure&experiencefortheyoungworkforce.This would help revamp the working practices in the company in synchronisation with global benchmarks.Nevertheless,consistenteffortsforcreatingsatisfiedclientsandbreakingnewgroundsholdsthekeytosustainthegrowthmomentumandtogetherwestandcommittedforanothersuccessfulyearahead.
2.0 SWOT Analysis
STRENGTHSi. Multi-disciplinaryexperiencedandcapablepoolofengineers/technologistsinvariousspecializedtechnical
disciplines.ii. Vast knowledge repository and reference materials, being a legacy design, engineering & consultancy
organization.iii. CorecompetencyinprovidingendtoendsolutionsintheareaofMetals&Miningwithestablishedmarket
recognition.iv. Capabilityinequipment&systemdesignandsupply&executioninFerrousarea.v. ProminentpresenceingaspipelinesprojectofGAIL(LongDistancePipeLine&CityGasDistributionetc.)vi. Experience in DEC and PMC services for Government Housing Boards, State & Central Institutional
Buildings,StateTranscosforsettingupsub-stationetc.vii. In-houseEnvironmentalEngineeringLaboratory.NABET/QCIAccreditationfor16sectors.viii. LowaverageageofemployeeduetoInductionofyoungprofessionals.ix. Goodcredentialswithfinancialinstitutionsandregulatoryauthorities.x. Widenetworkofofficesatvariouslocationsacrossthecountry.WEAKNESSESi. High incidence of employee benefit expense as compared to some of the competitors, especially in the
privatesector.ii. Depletion of critical knowledge / skills in certain areas on account of superannuation / separation of
experienced manpower.iii. Skewedorganizationstructure(Stillundertransition).iv. Technologicalobsolescence / gap especially in the areasof steelmaking, continuous castingand rolling
mills.v. ChallengesincredentialsformeetingPQcriteriaeg.endtoendEPCinthefieldofthermalandrenewable
energy,refining&petrochemicalsetc.vi. SystemicconstraintsinvendordevelopmentforstrengtheningexecutionofEPCjobs.vii. Inadequateexperiencedmanpowerforexecutionactivitiesatprojectsites.viii. Consolidationofstrengthindiversifiedsectorsmaytakesomemoretime.ix. Verylimitedpresenceintheoverseasmarket.x. Publicsectorlimitationinoperationalflexibility.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
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MECON Limited
OPPORTUNITYi. Anticipatedfutureinvestmentsinmining,beneficiation,agglomeration/pelletisation,slurrytransportation
andcoalwasheries.ii. PossiblefutureinvestmentinSteelsectorinviewoftheNationalMissionof300MTCrudeSteelCapacity
by2030-31.iii. Large scale investments inotherdiversified sectors viz. oil&gas, infrastructure& strategic sectors and
powertransmission&distribution&renewableenergysector.iv. Leveragingpastexperienceindefencesectortoharnessnewopportunitiesemanatingwiththeopeningof
DefenceProductionsectorforparticipationofprivatesector(FDIhikedto49%).v. Expansioninports,powerandminingsectorareexpectedtoofferassociatedMaterialHandlingProjects
andtheCompanyexpectstogeneratebusinessfromthissector,bothonitsowncredentialsandalsothroughjointparticipationwithotherCompanies.
vi. Opportunities fromGovt.FlagshipschemessuchasPradhanMantriAwasYojana(PMAY),DeenDayalUpadhayaGramJyotiYojna(DDUJGY),BharatMala,SagarMala,UrjaGanga,SwachhBharatetc.
THREAT i. Mushroomingofconsultancycompaniesoperatingatlowmargins.ii. Presence of Indian set-up of all major MNCs like SMS, Siemens, Danielli, Kobe Steel, etc providing
comprehensiveservicesincludingengineering.Privatesector,inparticular,optingforengineeredpackagesfromtheturnkeysuppliers,withoutengagementofexternalconsultants.
iii. Stringenttechnicalpre-qualificationcriteriaforconsultancyaswellassupplyjobs.iv. RecentdeclineininvestmentinthecoreareaofMetalsinthepastbutcontinueddependenceonMetals
sector.v. Unevenplayinggroundforpublic&privatesectors.vi. Today’sconsortiumpartnersemergeasfutureCompetitors.vii. Risk/uncertaintyinforeignstrategictie-ups.viii. Longapprovalprocessalongwithdelaysininfrastructuresectormayimpacttheoverallopportunityinthe
sector. ix. Delaysinstatutoryclearances,landacquisitionandR&Rissues.3.0 BUSINESS OUTLOOK
Global Economic Scenario
AsperWorldEconomyOutlookrecentreport,globalactivityslowednotablyinthesecondhalfoflastyear,reflectingaconfluenceoffactorsaffectingmajoreconomies.China’sgrowthdeclinedduetoincreasedtradetensionswithUnitedStates& regulatory tightening in shadowbanking.Theeuroareaeconomy lostmoremomentumthanexpectedasconsumerandbusinessconfidenceweakenedandcarproductioninGermanywasdisruptedbytheintroductionofnewemissionstandards,investmentdroppedinItalyassovereignspreadswidened,andexternaldemand,especiallyfromemergingAsia,softened.Asaresultofthesedevelopments,globalgrowthisnowprojectedtoslowfrom3.6%in2018to3.3%in2019.AsperInternationalMonetaryFund(IMF),gradualpickupinthesecondhalfof2019 ispredicatedonanongoingbuildupofpolicy stimulus inChina, recent improvements inglobalfinancialmarketsentiment,thewaningofsometemporarydragsongrowthintheeuroareaandagradualstabilizationofconditionsinstressedemergingmarketeconomies,includingArgentinaandTurkey.Beyond2020,globalgrowthissettoplateauatabout3.6percentoverthemediumterm,sustainedbytheincreaseintherelativesizeofeconomies,suchasthoseofChinaandIndia,whichareprojectedtohaverobustgrowthbycomparisonto slower-growing advanced and emerging market economies (even though Chinese growth will eventuallymoderate).
Indian Economic Scenario
Despitesoftergrowthintheworldeconomy, theIndianeconomyremainsoneofthefastestgrowingandpossiblytheleastaffectedbyglobalturmoil.AsperthelatestprojectionsofCentralStatisticsOffice(CSO),India’sGDPisestimatedtohaveincreased7.2%in2017-18and7.0%in2018-19.Netdirecttaxcollectionfor2018-19hadcrossedRs10trillion(US$144.57billion)byMarch16,2019,whilegoodsandservicestax(GST)collectionstood
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atRs10.70trillion(US$154.69billion)asofFebruary2019.DuetolaunchofcampaignsuchasMakeinIndia(MII)numerousforeigncompaniesaresettinguptheirfacilitiesinIndiaanditisexpectedthatthiscampaignwillboostthemanufacturingsectorofIndianeconomyandwillalsoenhancepurchasingpowerofanaverageIndianconsumer.TheGovernmentofIndia,asperNationalManufacturingPolicyundertheMakeinIndiainitiative,istryingtogiveboosttothecontributionmadebythemanufacturingsectorandaimstotakeitupto25%oftheGDPby2022-23fromthecurrent17%.Besides,theGovernmenthasalsocomeupwithDigitalIndiainitiative,toincreasethedigitalliteracy,NationalSteelPolicytoreach300MTby2030-31andotherpoliciessuchasHousingForAll,PowerForAll,UrjaGanga,AyushmanBharatetc.inordertofurtherstrengthentheIndianeconomy.
� Steel Industry
TheSteelSectorcontributesover2%totheGDPofthenationandemploysmorethan0.5millionpeopledirectlyand3millionindirectly.AspertheWorldSteelAssociation,Indiaisthefastest-growingmarketforsteelamongthetop10largeststeelmarketsbyvolume.ThesteeldemandinIndiaisexpectedtoremainrobustwithgrowthrangingfrom7to8%p.a.Thetotalcrudesteelproductioninthecountryhasreached106.50MTin2018-19,surpassingJapantobecomeworldsecondlargestproducer.Moreoverthesteelproductioncapacityhasincreasedto138MTin2018-19which is expected to reach300MTby2030-31asperNationalSteelPolicy2017.Considering thecomparativelylowpercapitasteelconsumptionof71Kgandexpectedgrowthinconsumptionduetogrowthininfrastructure,constructionandmanufacturing,yourCompanyisreadytoharnesstheopportunity.
Your Company believes that the growth of the steel industry will be driven by infrastructure, construction,engineering& fabrication, oil and gas and automotive.Moreover easy availability ofmanpower and presenceofrichendowmentofironorereservesmakesIndiacompetitiveinglobalset-up.EventhepolicysupportfromtheGovernmentintheformofimpositionofsafeguarddutyoranti-dumpingdutyonimportofsteelandexportdutyonironoreensuresthatthedomesticindustrycapitalizeonthefuturegrowthopportunity,mainlydrawnbydomesticdemand,DomesticallyManufacturedIron&SteelProducts(DMI&SP)Policy,qualitycontrolordersetc.
Thecountry’ssteelproductioncapacityisgrowingataCAGRof8.71%overaperiodof10yearsandisexpectedtoachieve300MTofproductioncapacityby2030-31.SuchexpansionofproductioncapacitywilltranslateintoadditionalinvestmentofalmostRs10LakhCroreby2030-31poisinggreatopportunityforyourCompanytogetasignificantshareoftheadditionalinvestment.India’sshareinglobalsteelproductionisexpectedtobe7.7%by2021ascomparedto5.9%in2018.WhereasthedomesticfinishedsteelconsumptionisgrowingataCAGRof5.70%duringthelast10years.Finishedsteelconsumptionduringtheyearunderreviewstoodat97.5MT.
Goneare thedayswhen thegapbetween India’s exportand importoffinished steelwasveryhuge. IncreasedsupplyofsteelensuresIndiawillcontinuetobeamajorglobalexporteraswell.NowIndia’sexportduringApril,2018toFebruary,2019(P)stoodat5.77MTandimportstoodat7.13MT.Thelongtermprospectforthesteelindustry in India remainsoptimistic inwakeofdomesticdemandpotential,duly supportedbyvariouspolicyinitiatives ofGovernment of India, theNational Steel Policy (NSP-2017),DMI&SP,Make in India etc.Yourcompanyhas strived to reinforce its technological capability in the entire value chainof iron& steel industrythroughthetechnologicaltie-upsandharnesstheopportunitiesemergingfromthegovernmentpolicies.
� Power Generation:
SourcesofpowergenerationinIndiarangefromconventionalsourcessuchascoal,lignite,naturalgas,oil,hydroandnuclearpowertoviablenon-conventionalsourcessuchaswind,solarandagriculturalanddomesticwaste.TheGovernmentof India’s focusonattaining ‘PowerForAll’hasacceleratedcapacityaddition in thecountrywiththrustonrenewablesourceofenergyandstrengtheningTransmission&Distribution(T&D)infrastructure.Totalinstalledcapacityofpowerstations(Thermal,Nuclear,Hydro&RenewableEnergySources)inIndiaason30.04.2019stoodat356Gigawatts(Source:CEA-CentralElectricityAuthority).
The thermalpowergeneration industryhasbeen retrofittingThermalPowerPlant (TPP)unitswithpollutioncontrolmeasuresinordertocomplywiththestringentemissionlimitsnotifiedbytheMinistryofEnvironment,ForestandClimateChange(MoEFCC)inDecember2015.Inordertomeetthestandards,newemissioncontrolsystems,includingFlueGasDesulphurization(FGD)andElectrostaticPrecipitators(ESPs),neededtobeinstalledatpowerplants.AccordinglyyourCompanyisprovidingitsconsultancyservicesforDe-Sox&De-NOxemissions.YourCompanyhasalsoforgedstrategictie-upwithtechnologypartnerintheareaofFGDtechnology.Also,yourCompanyisfocusingonRetrofitting,Renovation&Modernization(R&M)ofageingthermal&hydelplants.
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MECON Limited
� Oil & Gas:
TheGovernmentofIndiaaimstoincreasetheshareofgreenenergyintotalenergymixto15%.GovernmentofIndiahasadoptedseveralpoliciestofulfilltheincreasingdomesticdemandforoilandgasandmakingthesectorconduciveforinvestment.Thegovernmenthasallowed100percentForeignDirectInvestment(FDI)inmanysegmentsof the sector, includingnaturalgas,petroleumproducts, andrefineries.UnderGovernmentof IndiaschemessuchasUrjaGanga,yourCompanyhasrendereditsservicesinthevariousprojectssuchasAurariya-PhulpurNaturalGasPipeline(NGPL),Kochi-Kottanad-Bengaluru-MangaloreNGPL,Jagdispur-Haldia-Bokaro-DhamraNGPL.Thecumulativelengthofpipelineofthesethreeprojectsismorethan2600KM.AlsoyourCompanyhasoffereditsDesignEngineering&Consultancy(DEC)&ProjectManagementConsultancy(PMC)rangeofservicesinGroupGatheringStation,CityGasDistribution&PetroleumOils&Lubricant(POL)terminals.YourCompanyisalsofocusingtoenrichitsservicesandmoveupthevaluechaintocatertothemid-stream&up-streamsegmentsofoil&gas.
� Infrastructure:
InvestmentworthRs50trillionininfrastructureisplannedby2022.InfrastructuresectorisakeydriverfortheIndianeconomy.ThissectorisoneofthelargestreceiversofFDIinflowsinIndia.Initiativeslike“HousingForAll”&“SmartCitiesMission”willdirectthegrowthofthesector.100percentFDIispermittedthroughtheautomaticrouteinthesector.
¾ Power Transmission & Distribution: Government of India have launched various schemes forstrengthening the Power T&D infrastructure of the country such as Integrated Power DevelopmentScheme (IPDS),DeendayalUpadhyayaGram JyotiYojana (DDUGJY) etc.YourCompany is offeringconsultancy services to JharkhandBijliVitranNigamLimited (JBVNL),OdishaPowerTransmissionCorporationLimited(OPTCL)etc.
¾ Telecom: Indiaiscurrentlytheworld’ssecond-largesttelecommunicationsmarketwithasubscriberbaseof1.20billionasonFeb,2019.FDIcapinthetelecomsectorhasbeenincreasedto100percentfrom74percent;outof100percent,49percentautomaticrouteandtherestwillbedonethroughtheForeignInvestmentPromotionBoard(FIPB)approvalroute.TheGovernmentofIndiahasintroducedDigitalIndiaprogrammeunderwhichallthesectorssuchashealthcare,retail,etc.willbeconnectedthroughinternet.UnderthisprogramBHARATNETserviceshasbeenlaunchedinordertoprovideopticalfibrenetworktoprovidebroadbandconnectivitytoallgrampanchayatsofthecountry.YourCompanyisalsorenderingservicesinthisfield.
¾ Water:GovernmentofIndiahavelaunchedtheAtalMissionforRejuvenationandUrbanTransformation(AMRUT)withtheaimofprovidingbasiccivicamenitieslikewatersupply,sewerage,urbantransport,parksastoimprovethequalityoflifeforall.EnvironmentalauthoritiesinIndiahavedirectedindustriestointroduceZeroLiquidDischarge(ZLD)systemintheirprocessplants.YourCompanyisprovidingconsultancy&projectmanagementservicesinthefieldofZLD,WaterDesalinationplant&SewerageTreatment plant.
¾ Ports:Indiahasalongcoastlineofabout7,517Kmwithmorethan200portsincluding13majorports,providingampleopportunityinthissector.GovernmentofIndiahasallowedFDIofupto100percentundertheautomaticrouteforportandharborconstructionandmaintenanceprojects.GovernmentofIndiahasembarkedontheambitiousSagarmalaProgrammewhichaimstopromoteport-leddevelopmentinthecountry.YourCompanymayplaykeyroleinmanyprojectsenvisagedunderSagarmalaprogram.Also,yourCompanyistargetingprojectsintheportrelatedmaterialhandlingfacilities.
¾ Healthcare:Governmentof India launchedPradhanMantri JanArogyaYojana (PMJAY),AyushmanBharat.Underthisscheme,yourCompanyisworkingintheprojectofAllIndiaInstituteofHomeopathyatNarela(Delhi)underMinistryofAyush.
¾ Environment:UndertheguidelinesofMoEFCC,yourCompanyhasbeenundertakingEnvironmentalImpactAssessment(EIA),EnvironmentManagementPlan(EMP)&Socio-EconomicImpactAssessment(SEIA)studiesforminingindustries,infrastructureprojects&power.
¾ Strategic Sectors: Governmentpoliciescontinuetofocusonstrategicsectorssuchasdefense,space&atomicmineralswithsubstantialenhancementinthebudget.YourCompanyisalreadyprovidingDEC&
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PMCservicesinthesestrategicsectorsforprojectsofIndianArmy,Ordnancedepots,Navy,ISRO,UCILetc.
BUSINESS PROCUREMENT
Total₹inCrore
Sl. No. SBU
2017-18 2018-19Consultancy EPC Consultancy EPC
1. Metal 203.99 2.41 183.41 2832.122. Energy 206.71 Nil 72.11 Nil3. Infrastructure 122.57 467.76 104.11 NilTotal(₹) 533.27 470.17 359.63 2832.12Grand Total (₹) 1,003.44 3,191.75
4.0. INTERNAL CONTROL SYSTEMS AND ADEQUACY THEREOF
YourCompanynotonlyhasaproperandadequatesystemofinternalcontrolandproperdocumentedprocedureencompassingallfinancialandoperatingfunctionsbutalsoahistoryandtraditionbequeathedsinceinception.
Thesehavebeenplanned toprovide reasonable accuracy formaintenanceofproper accounting and adequatecontroltomonitorandtogovernthecompany’sfund,tooptimizeinternalresourcesforincreasingoperationalefficiency,tosecureassetsfromunauthorizeduseandtoascertainrelianceonfinancialandallotheroperationalinformation.
Thecompanyhasundertakenunifieduntiringteamefforttoachievethebestpossiblestate-of-theartsystem.
Salientfacetsoftheinternalcontrolsystemare:
¾ Anin-houseinternalauditteamisresponsibleforreviewingtheestablishedinternalcontrolsystemsatplacewithintheorganization.Tomaintainitsobjectivityandindependence,theInternalAuditSectionreportsdirectlytotheChairmanandManagingDirector.
¾ Thecompanyhasanextensiveprogrammeofcarryingout internalaudits,managementandfinancialreviewstoensuregreaterefficiency,transparencyandaccountability.
¾ Quarterly Internal Audit reports comprising of significant audit observations and follow-up actionsthereonareplacedbeforetheAuditCommitteefortheirconsiderationandreview.
¾ Welldefineddelegationofpowerwithsanctioninglimitsforpurchasingofcapitalitemsandapprovingofrevenueexpenditure.
¾ Wellplannedbudgetforcapital&revenueexpenditureandcontinuousmonitoring.
¾ WelldefinedPurchaseandDisposalProceduretocarryoutfunctionofpurchaseencompassingvariousGovernmentandCVCguidelinesforin-houseprocurementaswellasprocurementofservicesandgoodsforexecutingEPCjobsandconsultancyjobs.
¾ Well framed EstablishmentManual and Service Rules to codify rules and policies governing serviceconditionsofemployees.
¾ WellcodifiedApexQualityManualforensuringqualityofservicesprovidedandgoodssoldforexecutingEPC jobs.
¾ Periodicalmeetingat all functional levels andalsoat corporate level for reviewingandachieving thetargeted results.
¾ With implementation of online information system starting from raising of invoices to collection ofmoney, theentire systemhasbeenmademoreeffective in termsof furnishing factual information inshortestpossibletime.
¾ WelldefinedplantoinvestsurplusfundmostjudiciallyandreportingthereoftotheApexmanagementregularly.
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5.0 DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
During the Financial Year 2018-19, your company achieved Turnover of ₹47,017.24 lakh. Turnover fromConsultancyJobsis₹37,612.12lakh,mainlyfromexecutionofconsultancyorderforGAIL,NMDC,differentSteelPlantsofSAIL,etc.TurnoverfromConsultancyJobsconstituted80.00%ofthetotalturnoverandturnoverfromTurnkeyProjectsconstituted20.00%oftotalturnover.Totalturnoverhasincreasedby5.48%overthepreviousyear.Duringtheyear2018-19thecompanyhasmadeProfitAfterTaxof₹1,374.01lakhcomparedtoProfitAfterTaxof₹5,802.33lakhofthepreviousyear.DuringtheFinancialYear2018-19,thecompanyhasearnedinterestof₹3,770.76lakhthroughtermdepositswithscheduledbanks.TheNetWorthofthecompanyhasincreasedby₹13,621.25lakhcomparedtopreviousyear.Thehighlightsoffinancialperformanceofthecompanyforthefinancialyear2018-19w.r.t.2017-18arementionedbelow.
(₹inlakh)
Sl. No. Particulars FY
2018-19FY
2017-18 #a) Turnover 47,017.24 44,572.62b) RevenueFromOperations 47,920.36 48,037.08c) TotalIncome 53,040.05 58,962.03d) PurchaseofEquipments&DirectExpenses 9,070.36 13,768.34e) EmployeeBenefitExpenses 28,822.45 31,387.78f) OtherExpenses 11,249.08 8,381.11g) Profit/(Loss)BeforeTax 997.44 4,401.83h) Profit/(Loss)AfterTax 1,374.01 5,802.33i) TotalComprehensiveIncome 1,214.64 5,936.21j) PropertyPlant&Equipments(Gross) 16,076.24 15,899.08k) IntangibleAssets(Gross) 1,509.81 1,459.00l) Financial Assets (Current and Non Current)
Investment 11.92 11.92TradeReceivables 44,586.11 38,597.89Loans 986.90 985.99CashandBankBalance 54,142.29 58,282.60OtherFinancialAssets(ExcludingBankBalance) 53,738.29 40,932.06
m) OtherAssets(CurrentandNonCurrent) 10,317.79 8,511.92n) Financial Liabilities (Current and Non Current)
Trade Payables 18,655.13 20,030.10Other Financial Liabilities (Current and NonCurrent)
28,393.69 15,806.57
o) OtherLiabilities(CurrentandNonCurrent) 13,618.74 17,685.46p) NetWorth 36,448.18 22,826.93q) ShareCapital 4,013.84 4,013.84r) Capital Employed 25,696.12 12,940.91
#TheCompanyhasadoptedIndAS115from1stApril,2018andaccordingly,financialsfor2017-18arerestated.
6.0 HUMAN RESOURCE DEVELOPMENT
Themanagementlaysemphasistofocusandsustainacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise.Projectsbeingthecentreofourdeliverymechanism,workshopsandtrainingswerearrangedonSelectionofTechnology&ProductMix,MethodologyofContractClosureandContemporarytrendsinProjectManagement.Tobringaboutanoveralldevelopmentofourfutureleaders,toenablethemtounleashpotentialfor
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necessarybusinessimpactalongwithtechnicalcapabilitiesaugmentation,managementorganizedtraininginSoftSkills,PersonalityandSeniorLeadershipDevelopmentprogram.
WithregardstoTalentManagementandCareerProgression,employeeswerealsodeputedtovariousCentreofExcellencesunderMDPprograms,technicalprogramsandDPE’sResearchdevelopmentandConsultancyschemesuchasLeadershipandEnablersofachievingbusinessexcellence,PublicProcurementthroughE-ProcurementandGeMportal,IPMAlevelDcertificationCourse,ManagingForeignCurrenciesRiskandUnderstandingGlobalFinance,HRAnalytics,Mergers,AcquisitionsandRestructuring,TrainingonSteelMaking&SecondaryRefining,TrainingonWeldingTechnologyandEquipment,CityGasDistributioninIndia.Managementalwaysstrivestofocustowardsdevelopmentofitsemployeeswiththeobjectivethattheywillleadthecompanythroughchallengingenvironmentandensuresustainedvaluecreation.
7.0 TECHNOLOGICAL UP-GRADATION
Throughits6(six)decadesofexperienceinthedevelopmentandexpansionofIntegratedSteelPlantsaswellasotherbusinessverticals,MECONhasbeenabletobuildastrongtechnologicalbaseandhasacquired,absorbed&innovatedstate-of-the-arttechnologiestosuitvariousrequirements.Technological&Engineeringexcellenceachievedthroughaboveprocessisup-gradedoncontinuousbasisduringexecutionofvariousprojectsinassociationwithindustryleaders.Licenseagreementsandgeneralcollaboration/cooperationagreementswithorganisationssharingcommonbusinessinterests isprovidinganimpetusforMECONtostrengthenitsbusinessverticalsbycarvingoutmarketshare.Suchinitiativesarecomplementingknowledgeacquisition/up-gradationinadditiontobuilding-updatabaseforfocussedbusinessareaswiththeaimtobridgetheidentifiedtechnologygaps.Measuresadoptedtoworktowardstechnologyself-relianceinclude:
� ExposuretoGlobalTechnologies&Benchmarks � Maximizationofindigenization � Exploringglobalpartnersfornew/potentialbusinessareas � Aligninginternalresourcestocatertonewareas � Engagementofdomainexpertstocomplementin-houseexpertise � In-houseResearch&Development � Needbasedtraining-bothIn-house&outsideandparticipationinseminars/technologyfairs � Useofmoderntoolsforanalysis,design,modeling&drafting � Costeffectiveoperationsachievedthroughhigherrelianceonstate-of-the-artsoftwaretools
8.0 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY DEVELOPMENT (CSR & SD)
AsperSection-135ofTheCompaniesAct,2013,AverageNetProfitofyourCompanyfor theprecedingthreefinancialyears(i.e.FYs2015-16,2016-17&2017-18)wasNegative.Thus,aspertheActtherewasnoallocation,as2%ofAverageNetProfitwasNIL.However,asperDPEGuidelines,2%ofAdjustedPBTforFY2017-18wasallocatedasCSRfund,i.e.₹87.96Lakh.
YourCompanyhas taken a forward step for theBasicDevelopmentneeds (CreationofBasic Infrastructure -PotableDrinkingwater&Sanitation)andHealthcareprojectsinAdoptedVillagesofRanchi&KhuntidistrictsofJharkhandandinVisakhapatnam,A.P.,whicharetheAspirationalDistricts(AsidentifiedbyNITIAayog).
Thevariousprojects/activitiesundertakenunderitsCSR&SustainabilityPolicyduringFY2018-19aregiveninAppendix-ItotheDirector’sReport.
KeepingpacewiththeGovt.ofIndia’sMissionofSwachhBharat,theCompanyhascarriedoutvariousactivities/programmesforhighlightingthebenefitsofSwachhata.Awarenessprogramme&Cleanlinessdriveunder“SwachhBharatAbhiyan”werecarried-outinAdoptedVillagesunderthefollowingheads:
� “SwachhtaHiSewa”Campaign
� “SwachhtaPakhwada”Campaign
TheManagementofyourCompanyalwayslaythrustupontimelycompletionoftheCSRprojects/activitiessothatitsbenefitispassedontotheenduser.MoreovertheManagementalsolaysemphasis,thatregularon-goingschemes such as Free Literacy programme in Community Education Centres, Free Stitching Training underWomenEmpowermentScheme,FreeHealthCampsthroughMobileAmbulanceVanetc.shallalsobecontinuedtokeepCSR&SustainabilityactivityoftheCompanyaliveevenwhenthereislessornoallocablebudgetavailable.
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ANNEXURE-III
1.0 COMPANY’S PHILOSOPHY
TheCompany’sCorporateGovernancepracticeisbasedontheprinciplesofintegrity,fairness,equity,transparency,accountabilityandcommitmenttovaluesthatgovernsrelationshipwithallitsstakeholdersandattainingmaximumlevelofenrichmentoftheenterprise.ThesaidpracticeofCorporateGovernancestemfromitsprofessionalism.YourCompanylaysemphasisontheproperconductofitsactivitiesandenhancethevalueofallthosewhoareassociatedwith theCompany viz. Shareholders,Customers,Vendors,Governmentof India,Ministry of Steel,DepartmentofPublicEnterprises,variousStateGovernments,otherGovernmentAgencies/Departmentsandthesociety at large.
2.0 BOARD OF DIRECTORS
YourCompanybeingaCentralPSU,appointment/nominationofallDirectorsisdonebythePresidentofIndiathrough theMinistry of Steel.TheChairman andManagingDirector andFunctionalDirectors are appointedbytheGovernmentofIndia,MinistryofSteelforaperiodoffiveyearsortilltheageofsuperannuationoruntilfurtherorderswhicheverisearlier.Part-timeIndependentDirectorsarenormallyappointedforatenureofthreeyears.ArticlesofAssociationoftheCompanystipulatethatthenumberofDirectorsshallnotbelessthanfiveandnotmorethanthirteen.ThecompositionoftheBoardisasperDPEGuidelinesonCorporateGovernance.
Composition of Board of Directors
Sl.No
Particulars of Directors Sanctioned Strength Actual positionas on 31.03.2019
i. FunctionalDirectorsincludingCMD(WTD) 5 5
ii. Part-timeGovernmentDirectors 2 2
iii. Part-timeIndependentDirectors 3 2*
Total 10 9
(*)InDecember,2018twomorePart-timeIndependentDirectorswereappointedbyGovernmentofIndiaontheBoardoftheCompanybutonlyonerespondedandgotinductedontheBoardoftheCompany.
2.1 Terms & Conditions of appointment of Board Member:
Theterms,conditionsandtenureofappointmentofallBoardMembersaredecidedbytheGovernmentofIndia,MinistryofSteel.
2.2 Remuneration / Compensation to Board of Directors :
TheChairmanandManagingDirectorandWhole-timeDirectorsarepaidmonthlyremunerationasfixedbytheGovernmentofIndia.TheCompanybearsalltheexpenditureofDirectorsforattendingthemeetings.Part-time
GovernmentDirectorsarenotpaidanyremuneration.ThePart-timeIndependentDirectorsarepaidsittingfeesof₹15,000/-forattendingeachBoardMeetingand₹10,000/-forattendingeachBoardlevelCommitteemeeting.ThedetailsofsittingfeespaidtothePart-timeIndependentDirectorduringF.Y2018-19areasfollows.
Name of Director (Shri)Sitting Fees (₹)
Total(₹)Board Meetings Committee Meetings
SisirKumarAppikatla 55,000/- 70,000/- 1,25,000/-
DeepakKrishan 15,000/- -- 15,000/-
2.3 Board Meetings:
TheBoardmeetsstatutorilyandalsoasmanytimesasmaybewarranted.TheBoardMeetingsareconvenedas
CORPORATE GOVERNANCE
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pertheCompaniesAct,2013bygivingappropriateadvancenoticeafterseekingapprovaloftheChairmanoftheBoard.DetailedagendanotesarecirculatedinadvanceaspertheCompaniesAct,2013totheBoardMembersfor facilitatingmeaningful, informed and focused decision at themeeting. In case of special and exceptionalcircumstancesadditionalagendaitem(s)is/arealsopermittedwiththeconsentofChairmanoftheBoard.TheCompanySecretaryactsastheSecretarytotheBoardandBoardlevelCommitteeMeetings.
2.4 Number of Board Meetings:
Duringtheyear2018-19,Five(5)Meetingswereheld,thedetailsofwhicharegivenbelow:
Sl.No. DateofMeeting BoardStrength NumberofDirectorsPresent1 19.07.2018 7 62 26.07.2018 8 73 25.10.2018 8 84 09.01.2019 8 75 19.03.2019 9 9
ParticularsoftheDirectorsincludingtheirattendanceattheBoardMeetingsfrom1stApril,2018to31stMarch,2019.
Name of Directors & Designation (Shri / Smt.)
Number of Meetings held Number of Meetings attended
I. Whole time Directors
AtulBhatt,CMD Five Five
P.K.Sarangi,Director(Technical) Five Five
GoutamChatterjee,Director(Commercial) Five Five
SalilKumar,Director(Projects) Five Five
R.H.Juneja,Director(Finance) (appointedw.e.f20.04.2018)
Five Five
II. Part-time Government DirectorsSaraswatiPrasad,IAS Five FourSunilBarthwal,IAS, (upto24.05.2018)
Nil Nil
T.Srinivas (From24.05.2018to16.07.2018)
Nil Nil
RasikaChaube (w.e.f.16.07.2018)
Four Three
III. Part-time Independent DirectorSisirKumarAppikatla Five FourDeepakKrishan(w.e.f23.01.2019) One One
3.0 BOARD COMMITTEES
3.1 Audit Committee
ThelatestreconstitutedAuditCommitteeinplaceconsistsoftwoPart-timeIndependentDirectorandonewhole-timeDirector.TheroleandpowersoftheAuditCommitteeisasperSection177oftheCompaniesAct,2013aswellastheGuidelinesonCorporateGovernanceissuedbytheDepartmentofPublicEnterprises.TheChairmanoftheAuditCommitteeisParttimeIndependentDirector.ThepresentAuditCommitteeinplacecomprisesofthefollowingDirectors.
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MECON Limited
Sl. No Name of Directors (Shri) Status in Committee
1 SisirKumarAppikatla,IndependentDirector. Chairman2 DeepakKrishan,IndependentDirector Member3 R.H.Juneja,Director(Finance) Member
RaviBambha,CompanySecretary Secretary
Number of Audit Committee Meetings
Duringtheyearunderreview,Five(5)Meetingswereheld,thedetailsofwhicharegivenbelow:
Sl.No DateofMeeting Member’sStrength No.ofMembersPresent
1 26.07.2018 Three Three
2 25.10.2018 Three Three
3 12.11.2018 Three Three
4 09.01.2019 Three Three
5 19.03.2019 Three Three
ParticularsoftheDirectorsincludingtheirattendanceattheAuditCommitteeMeetingsfrom1stApril,2018to31stMarch,2019
Name of Directors Period Number of Meetings held
Number of Meetings attended
ShriSisirKumarAppikatla,IndependentDirector&Chairman.
01.04.2018to31.03.2019
Five Five
ShriGoutamChatterjee, Director(Commercial)&Member.
01.04.2018to31.03.2019
Five Five
ShriR.H.Juneja, Director(Finance)&Member (w.e.f.19.07.2018)
19.07.2018to31.03.2019
Five Five
3.2 Nomination and Remuneration Committee
WiththeappointmentofShriDeepakKrishanasPart-timeIndependentDirectorontheBoardofMECONandconsideringtheearlierappointmentofShriSisirKumarAppikatlaasPart-timeIndependentDirector,theBoardhasapprovedconstitutionofNominationandRemunerationCommitteecomprisingoffollowingmembers:-
Sl. No Name of Directors (Shri/ Smt.) Status in Committee
1 DeepakKrishan,IndependentDirector. Chairman
2 SisirKumarAppikatla,IndependentDirector Member
3 RasikaChaube,GovernmentDirector Member
4 AtulBhatt,ChairmanandManagingDirector Member
RaviBambha,CompanySecretary Secretary
3.3 Corporate Social Responsibility (CSR) and Sustainability Committee
IncomplianceoftheprovisionsofSection135oftheCompaniesAct,2013readwithGuidelinesonCorporateSocialResponsibility and Sustainability issuedby theDepartment of PublicEnterprises, aBoard levelCSR&SustainabilityCommitteewasconstituted.TheroleandfunctionsoftheCSR&SustainabilityCommitteeisasperCompanies(CorporateSocialResponsibilityPolicy)Rules2014.
ThepresentCSR&SustainabilityCommitteeinplacecomprisesofthefollowingDirectors.
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Sl. No. Name of Directors (Shri) Status in Committee
1 SisirKumarAppikatla,IndependentDirector Chairman
2 P.K.Sarangi,Director(Technical) Member
3 R.H.Juneja,Director(Finance) Member
RaviBambha,CompanySecretary Secretary
Number of CSR & Sustainability Committee Meetings:
Duringtheyearunderreview,Two(2)Meetingwereheld,thedetailsofwhicharegivenbelow:
Sl. No Date of Meeting Member’s Strength No. of Members Present
1 26.07.2018 Three Three
2 19.03.2019 Three Three
ParticularsoftheDirectorsincludingtheirattendanceattheCSR&SustainabilityCommitteeMeeting.
Name of Directors Period Number of Meetings held.
Number of Meetings attended.
Shri.SunilBarthwal,IAS,GovernmentDirector&Chairman.
01.04.2018to24.05.2018
Nil Nil
Shri.T.Srinivas,GovernmentDirector&Chairman
25.06.2018to16.07.2018
Nil Nil
Shri.SisirKumarAppikatla, IndependentDirector&Chairman,w.e.f.19.07.2018
01.04.2018to31.03.2019
Two Two
Shri.P.K.Sarangi, Director(Technical)&Member
01.04.2018to31.03.2019
Two Two
Shri.R.H.Juneja, Director(Finance)&Member
19.07.2018to31.03.2019
Two Two
3.4 Part time Independent Directors Meeting
YourCompanyhadonlyoneIndependentDirectoronitsBoardandthusnomeetingofIndependentDirectorwascarriedout.Recently,theGovernmentappointedanotherIndependentDirector,raisingthestrengthtotwo.Now,yourCompanyshallexplorethepossibilityofholdingatleastonemeetingoftheIndependentDirectorsasspecifiedundersub-paragraph(1)ofparagraph(VII)ofScheduleIVtotheCompaniesAct,2013.
4.0 ANNUAL GENERAL MEETING
ThedetailsofthelastthreeAnnualGeneralMeetingofthecompanyareasfollows:-
Year Date Time Venue
2015-16 22ndAug.,2016 2.00P.M BoardRoom,MECONOffice,13thFloor,SCOPEMinar,LaxmiNagar,Delhi-110092.
2016-17 21stSept.,2017 12.00Noon OUDHConferenceHall,HotelAshok,Chanakyapuri,NewDelhi.
2017-18 20thSept.,2018 2.30P.M OUDHConferenceHall,HotelAshok,Chanakyapuri,NewDelhi.
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MECON Limited
5.0 DISCLOSURES:
5.1 Declaration of independence by Independent Director
IncomplianceofSec134(3)(d)oftheCompaniesAct,2013theCompanyhasobtaineddeclarationofindependencefromtheIndependentDirectorfortheF.Y2018-19underSection149(6)oftheCompaniesAct,2013.
5.2 Related party transactions
Thereareno‘materiallysignificantrelatedpartytransactions’thatmayhaveapotentialconflictwiththeinterestofCompanyatlarge.ThedetailsofRelatedPartyDisclosureasperInd.AS-24isdisclosedunderNote 40.11 of the Financial Statement.
5.3 Disclosure of accounting treatment
AllapplicableIndianAccountingStandardsissuedbytheInstituteofCharteredAccountantsofIndiaarebeingfollowedinthepreparationoffinancialstatements.TheSignificantAccountingPolicyoftheCompanyisdisclosed under Note 2 of the Financial Statement.
5.4 Compliance Certificate
AcertificateoncomplianceofapplicablelawsisplacedbeforetheAuditCommitteeandBoardonquarterlybasis.
5.5 Code of Conduct
TheBoardofDirectorshaslaiddownCodeofBusinessConductandEthicsfortheBoardMembersandSeniorManagementoftheCompany.TheCodeisdisplayedonthewebsiteoftheCompany.AllBoardMembersandSeniorManagementofficialsofthecompanyhaveaffirmedtheircompliancewiththecode.
6.0 MEANS OF COMMUNICATION
AnnualReportcontainingChairman’sSpeech,Directors’Report,ManagementDiscussionandAnalysisReport,CorporateGovernanceReport,Auditor’sReport,AuditedAccountsandotherimportantinformationaremadeavailableonthewebsiteoftheCompany.
7.0 TRAINING OF BOARD MEMBERS
Directorsarebeingnominated,asandwhenrequiredforthetrainingprogrammeorganizedbyDPE,SCOPEetc.
8.0 WHISTLE BLOWER POLICY
TheCompanyhasWhistleBlowerPolicyinaccordancewiththerequirementofSection177(9)oftheCompaniesAct,2013andthesameisuploadedonthewebsiteoftheCompany.ItisalsoaffirmedthatnoemployeehasbeendeniedaccesstotheAuditCommittee.
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INDEPENDENT AUDITORS’ REPORTTo
The Members of MECON LIMITED
Report on the Audit of the Standalone Financial Statements.
Opinion
Wehaveauditedtheaccompanyingstandalonefinancialstatementsof MECON LIMITED (“the Company”) whichcomprisestheBalanceSheetasat31stMarch2019,theStatementofProfitandLoss(includingothercomprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsforyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalone financial statements give the information required by theCompaniesAct, 2013 (“theAct”) in themanner so required andgive a true and fair view in conformitywith IndianAccountingStandardprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rule,2015asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31st,2019,theprofit,totalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.
Basis for Opinion
Weconductedour auditof the standalonefinancial statements in accordancewith theStandardsonAuditing(SAs)specifiedundersection143(10)oftheCompaniesAct,2013.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’s Responsibilities for the Audit of the Standalone Financial Statementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheCompaniesAct,2013andtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononthestandalonefinancialstatements.
Emphasis of Matter
WedrawattentiontothefollowingmattersinthenotestotheStandaloneFinancialStatements:
a) NoteNo.40.28withrespect toappealfiledby theCompanywith theHon’bleHighCourtof JharkhandinthematterofArbitralawardpronouncedagainstthecompanyandtherelateddisclosureofcontingentliabilityasmentionedinthesaidnote.
b) NoteNo. 40.27with respect to appeal filed by the companywith theHon’ble PrincipalDistrictCourt,Cuddloreinthematterrelatedtorecoveryofadvanceagainstthebankguarantee.
c) NoteNo. 40.26with respect to non provision for pay revision of executive employees w.e.f 01.01.2017consideringtheDPEOMdated03.08.2017andthefinancialstatusoftheCompany.
d) NoteNo.40.15(g)withrespecttotheeffectofchangeinaccountingpolicyduetoadoptionofIndAS115,theretainedearninghasincreasedby₹13,485.57Lakhsandconsequentincreaseinassetsandliabilitiesby₹5,739.40Lakhs.Howeverthereisnomaterialeffectonthecurrentyear’sprofit.
Ouropinionisnotmodifiedinrespectofthesematters.
Key Audit Matters
KeyAuditmattersarethosemattersthatinourprofessionaljudgement,wereofmostsignificanceinourauditofthestandalonefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthestandalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobe communicated in our reports.
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MECON Limited
Sl. No Key Audit Matters Audit Response on Key Audit Matter
1. Recognition and Measurement of revenue
TheCompanyhasadoptedIndAS115,RevenuefromContractswithCustomers(‘IndAS115’),thenewstandardonrevenuerecognition.
Theapplicationandtransitiontothisaccountingstandardiscomplexandisanauditfocusarea.
The revenue standard establishes acomprehensive framework for determiningwhether, howmuch andwhen revenue shouldbe recognized. This involves certain keyjudgments relating to identification of distinctperformance obligations, determination of thetransaction price, allocation of the transactionpricetoidentifiedperformanceobligations,andthe appropriateness of the revenue recognitionmethodology. Additionally, the standardmandates robust disclosures in respect ofrevenueandperiodsoverwhichtheremainingperformance obligations will be satisfiedsubsequenttothebalancesheetdate.
Refer:Notes 2 (8) to the Standalone FinancialStatement of Accounting Policy on RevenueRecognition.
Our audit procedures on adoption of Ind AS 115,RevenuefromcontractswithCustomers(‘IndAS115’),the new standard on revenue recognition, include thefollowing–
• Evaluated the design and implementation ofthe processes and internal controls relating toimplementation of the new revenue recognitionstandard.
• Evaluated the detailed analysis performedby management across revenue streams byselecting samples for the existing contractswithcustomers and verified the appropriateness ofidentificationofdistinctperformanceobligations,determinationofthetransactionprice,allocationofthetransactionpricetoidentifiedperformanceobligationsandtheappropriatenessoftherevenuerecognitionmethodology.
• Evaluatedtheappropriatenessoftheadjustmentsrecordedbymanagementas at1stApril, 2018 totransitiontothenewrevenuestandard,usingthemodifiedretrospectiveapproach.
• Evaluated the appropriateness of the accountingpolicy and disclosures provided under the newrevenue standard and assessed the completenessand mathematical accuracy of the relevantdisclosures.
Information Other than the Standalone Financial Statements and Auditor’s Report ThereonThe Company’s Board of Directors is responsible for the preparation of the other information. The otherinformation comprises the information included in theManagementDiscussionandAnalysis,Board’sReportincludingannexurestoBoardsReport,BusinessResponsibilityReport,CorporateGovernanceandShareholdersInformation,butdoesnotincludethestandalonefinancialstatementsandourauditor’sreportthereon.OuropinionontheStandaloneFinancialStatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.In connection with our audit of the Standalone Financial Statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with theStandaloneFinancialStatementsorourknowledgeobtainedduringthecourseofouraudit,orotherwiseappearsto be materially misstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.Responsibility of Management and those Charged with Governance for the Standalone Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance,totalcomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheCompaniesAct2013(“theAct”)readwiththerelevantrulesissuedthereunder.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimates
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that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financialcontrols, thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthestandalonefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThoseBoardofDirectorsarealsoresponsibleforoverseeingtheCompany’sfinancialreportingprocess.Auditor’s Responsibility for the Audit of the Standalone Financial StatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandare consideredmaterial if, individuallyor in theaggregate, theycould reasonablybeexpected toinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
� Identifyandassess the risksofmaterialmisstatementof the standalonefinancial statements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethat is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting amaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
� Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolsysteminplaceandtheoperatingeffectivenessofsuchcontrols.
� Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated disclosures made by management.
� Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityoftheCompanytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However, futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
� Evaluatetheoverallpresentation,structureandcontentofthestandalonefinancialstatements,includingthedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or inaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthestandalonefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthestandalonefinancialstatements.Wealsocommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovide those chargedwithgovernancewith a statement thatwehave compliedwith relevant ethicalrequirementsregarding independence,andtocommunicatewith themall relationshipsandothermatters thatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
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MECON Limited
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekey auditmatters.Wedescribe thesematters inour auditor’s reportunless lawor regulationprecludespublicdisclosure about thematterorwhen, in extremely rare circumstances,wedetermine that amatter shouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central
GovernmentofIndiaintermsofsub-section(11)ofsection143oftheCompaniesAct,2013,wegiveintheAnnexure“A”astatementonthemattersspecifiedinparagraphs3and4of theOrder, totheextentapplicable.
2. Asrequiredbysection143(5)oftheAct,theComptrollerandAuditorGeneralofIndiaIssuedDirectionsandsub-directions.WegiveourcommentthereonvideAnnexure“B”.
3. AsrequiredbySection143(3)oftheAct,wereportthat:a. Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledge
andbeliefwerenecessaryforthepurposesofouraudit.b. Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofaras
itappearsfromourexaminationofthosebooks.c. TheBalanceSheet,theStatementofProfitandLossincludingothercomprehensiveincome,Statement
ofChangesinEquityandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.
d. Inouropinion, the aforesaid standalonefinancial statements complywith the IndianAccountingStandardsspecifiedunderSection133oftheAct,readwithrelevantrulesissuedthereunder.
e. In terms ofGovt. of India,Department ofCompanies affairsNotificationNo.GSR 463(E) dated5thJune 2015, Govt. Company is exempt from applicability of provision of section 164(2) of theCompaniesAct2013.
f. WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportinAnnexure“C”.
g. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014(asamended),inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninits
standalonefinancialstatements-ReferNote38.1tothestandalonefinancialstatements.ii. The Company has made provision, as required under the applicable law or accounting
standards,formaterialforeseeablelossesifany,onlong-termcontractsandtheCompanydidnothaveanyderivativecontracts.
iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.
ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C
Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433
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“Annexure A” to the Independent Auditors’ Report of even date on Standalone Financial Statements of MECON LIMITED
(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section) (i) In respect of its fixed assets:
a) TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationofitsfixedassetsexceptinrespectofsomecaseswhereinthefixedassetsregisterandrecordsareintheprocessofupdation.
b) ThefixedassetsoftheCompanyhavebeenphysicallyverifiedbythemanagement.Inouropinion,theperiodofverificationisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsbusiness.
c) ThetitledeedsoftheImmovablePropertiesareheldinthenameoftheCompanyascertifiedbythemanagementexceptDeedofconveyanceofLandatRanchi,measuring10.25acres,valuedfor₹2.69lakhs,whichispendingsincelongforexecutionbytheGovernmentofJharkhand.TheofficebuildingatScopeMinar,Delhihavebeenacquiredoncontributionbasiswithoutownershiptitledeed.
(ii) In respect of physical verification of Inventory:
a) Theinventorieshavebeenphysicallyverifiedbythemanagementduringtheyear.
b) Inouropinionandaccording to the informationandexplanationsgiven tous, theprocedure forphysicalverificationofinventoriesfollowedbythemanagementaregenerallyreasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.
c) Inouropinionandaccording to the informationandexplanationsgiven tous, theCompanyhasmaintainedproperrecordsofitsinventory.Nomaterialdiscrepancieshavebeennoticedonverificationbetweenthephysicalstocksandthebookrecords.
(iii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgrantedany loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other partiescoveredintheregistermaintainedunderSection189oftheCompaniesAct,2013andhenceclause(a)to(b)isnotapplicabletotheCompany.
(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgivenanyloansandguaranteesandnotmadeanyinvestmentsinrespectofSection185&186oftheCompaniesAct2013.
(v) In our opinion and according to the information and explanations given to us, the Company has notacceptedanypublicdepositsduringtheyearhenceclause(v)isnotapplicabletotheCompany.AccordinglythedirectivesissuedbytheRBIandprovisionsofSections73to76oranyotherrelevantprovisionsoftheActandrulesframedthereunderarenotapplicable.
(vi) Accordingtotheinformationgiventous,theCentralGovernmenthasnotprescribedmaintenanceofcostrecordsundersection148(1)oftheAct.
(vii) Accordingtotheinformationandexplanationsgiventousinrespectofstatutoryandotherdues:
a) The Company has generally been regular in depositing undisputed statutory dues, in respect ofProvidentFund,Employee’sStateInsurance,Income-tax,Goods&ServiceTax,Customsduty,ExciseDuty,CessandothermaterialStatutorydueswiththeappropriateauthorities.
b) Accordingtotheinformationandexplanationsgiventous,therearenoundisputedstatutoryduesoutstandingforaperiodofmorethansixmonthsfromthedatetheybecamepayable,asperbooksofaccountsasat31stMarch,2019.
c) Accordingtotheinformationandexplanationsgiventous,therearedisputedstatutorydues,whichhavenotbeendepositedasat31stMarch2019,asgivenhereinbelow:
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MECON Limited
Name of the Statute Period to which relates Forum Amount
(₹ in Lakhs)
CentralSalesTaxAct&SalesTaxActsofvariousstates
1999-2000 STAT,AndhraPradesh. 4.412000-2001 STAT,AndhraPradesh 101.402001-2002 AndhraPradesh.HighCourt 450.881995-1996 CommissionerofCommercialTaxes,Ranchi 258.121999-2000 CommissionerofCommercialTaxes,Ranchi 24.512001-2002 CommissionerofCommercialTaxes,Ranchi 49.472002-2003 CommissionerofCommercialTaxes,Ranchi 106.622009-2010 JharkhandCommercialTaxTribunal 27.661993-1994,1994-1995&1996-1997
JCCT(Appeal),Dhanbad 0.67
2005-2006 CommissionerofCommercialTaxes,Ranchi 78.502008-2009 CommissionerofCommercialTaxes,Ranchi 20.61
1996-1997 JointCommissionerofComm.Taxes,(Appeal),Jamshedpur 1.92
*1994-1995 JharkhandSalesTaxTribunal 219.10*2003-2004 AdditionalCommissioner,Kolkata 16.472006-2007 JharkhandCommercialTaxTribunal(Appeal) 9.762007-2008 JharkhandCommercialTaxTribunal(Appeal) 26.162010-2011 CommissionerofCommercialTaxes,Ranchi 217.292011-2012 CommissionerofCommercialTaxes,Ranchi 535.812011-2012 CommissionerofCommercialTaxes,Ranchi 0.0162011-2012 Jt.Comm.(Appeals),Sundergarh,Rourkela 206.391997-1998 CommissionerofSalesTax,Cuttack 46.512013-2014 AppellateDy.Commissioner,Vijaywada 16.092013-2014 Jt.Commissioner(Appeal),Durg 0.312014-2015 AppellateAdditionalCommissioner,Raipur 14.77
CentralExciseAct,1944 2018-2019 CESTAT,Kolkata 200.00
ServiceTax 2018-2019 CommissionerAppeal,CGST&CentralExciseRanchi 30.65
Employees Provident FundandMisc.ProvisionsAct1952 2003-2004 EPF,AppellateTribunal,NewDelhi 229.70
IncomeTaxAct 2000-2001 IncomeTaxAppellateTribunal,Ranchi 178.17IncomeTaxAct 2002-2003 CIT(A),Ranchi 105.54IncomeTaxAct 2010-2011 CIT(A),Ranchi 79.42IncomeTaxAct 2011-2012 CIT(A),Ranchi 96.32IncomeTaxAct 2012-2013 IncomeTaxAppellateTribunal,Ranchi 116.35IncomeTaxAct 2013-2014 IncomeTaxAppellateTribunal,Ranchi 205.80
Outoftheaboveincometaxdisputeof₹781.60lakhsconsistingof₹497.89lakhshasalreadybeenadjustedagainstrefund.
Outoftheabovedisputedstatutorydues, inthetwocasesmarked*,provisionhasbeenmadeinthebooksofaccountsunder“ProvisionforDisputedcases–salestaxmatter.”
It isalsoinformedthattheCompanyhasdeposited₹445.90Lakhstowardsthestatutorydisputedcases,outofwhich₹194.81Lakhspertaintothestatutorydisputedcases listedabove.TheBalance₹251.09Lakhsrelatesto
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disputedcaseswhichhavebeensetasidebytheauthorities.
viii) In our opinion and according to the information and explanations given to us, the Company has notdefaultedinrepaymentofduestofinancialinstitutions,banksordebentureholdersduringtheyear.
ix) According to the information and explanations given by the management and the audit proceduresperformed,thecompanyhasnotraisedmoneybywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)andtermloanduringtheyear.
x) Tothebestofourknowledgeandbeliefandaccordingtotheinformationandexplanationsgiventous,nomaterialfraudbytheCompanyoranyfraudontheCompanybyitsofficersandemployeeshasbeennoticedorreportedduringtheyear.
xi) AspernotificationGSR463(E)dated5thJune2015issuedbytheMinistryofCorporateAffairs,GovernmentofIndia,Section197oftheActisnotapplicabletotheGovernmentCompany.Accordinglyparagraph3(xi)oftheorderisnotapplicabletotheCompany.
xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnotaNidhiCompany.ThereforetheprovisionsofClause3(xii)oftheOrderarenotapplicabletotheCompany.
xiii) Inouropinionandaccording to the informationandexplanationsgiven tous,all transactionswith theRelatedPartiesareincompliancewithSection177&188oftheActandthedetailshavebeendisclosedintheFinancialStatementsasrequiredbytheapplicableaccountingstandards.
xiv) Accordingtotheinformationandexplanationsgiventousandbasedupontheauditprocedureperformed,theCompanyhasnotmade anypreferential allotment or private placement of shares or fully or partlyconvertibledebenturesduringtheyearunderreview.Accordingly, theprovisionsofClause3(xiv)of theOrderarenotapplicabletotheCompany.
xv) Accordingtotheinformationandexplanationsgiventousandbasedupontheauditprocedureperformed,theCompanyhasnotenteredintoanynoncashtransactionswiththeDirectorsorpersonsconnectedwithhim.Accordingly,theprovisionsofClause3(xv)oftheOrderarenotapplicabletotheCompany.
xvi) Inouropinion, theCompany isnot required tobe registeredunderSection45-IAof theReserveBankofIndiaAct,1934andaccordingly,theprovisionsofClause3(xvi)oftheOrderarenotapplicabletotheCompany.
ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C
Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433
71
MECON
MECON Limited
“Annexure B” to the Independent Auditors’ Report of even date on Standalone Financial Statements of MECON LIMITED for the year 2018-19.
Directions under section143(5) of Companies Act, 2013 referred to in paragraph 2 of our report
Sn Question Reply1. WhethertheCompanyhassysteminplacetoprocess
alltheaccountingtransactionsthroughITsystem?
If yes, the implicationsof processingof accountingtransactionsoutsideITsystemontheintegrityoftheaccountsalongwiththefinancialimplications,ifanymay be stated.
Asper the informationandexplanationsgiven tous, theCompanyhasasysteminplace toprocessalltheaccountingtransactionsthroughITsystem.
The main area covered are financial accounting,payroll,sales,GST,jobprogressreport.
Basedon the auditprocedures carriedout andasper the informationandexplanationsgiven tous,no accounting transactions have been processed/carried outside the IT system. Accordingly, therearenoimplicationsontheintegrityoftheaccounts.
2. Whetherthereisanyrestructuringofanexistingloanor cases of waiver/write off of debts/loans/interest,etc. made by a lender to the Company due to theCompany’sinabilitytorepaytheloan?
Ifyes,thefinancialimpactmaybestated.
Basedon the auditprocedures carriedout andasper the informationandexplanationsgiven tous,there was no restructuring of existing loans orcases of waiver/write off of debts/ loans/interest,etc.madebythelendertotheCompanyduetotheCompany’sinabilitytorepaytheloan.
3. Whether funds received/receivable for specificschemes fromCentral/State agencieswere properlyaccountedfor/utilizedasperitstermsandconditions?
Listthecasesofdeviation.
Basedontheauditprocedurescarriedoutandasperthe informationandexplanationsgiven tous, thefundsreceived/receivableforspecificschemesfromCentral/Stateagencieswereproperlyaccountedfor/utilizedaspertherespectivetermsandconditions.
72
MECON
“Annexure C” to the Independent Auditors’ report of even date on Standalone Financial Statements of MECON LIMITED.
ReportonInternalFinancialControlsoverfinancialreportingunderclause(i)ofsub-section3ofsection143oftheCompaniesAct,2013(“theAct”)
WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofMECONLIMITED(“theCompany”)asof31stMarch,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.
Management’s Responsibility for Internal Financial Controls
TheCompany’smanagement is responsible for establishing andmaintaining internal financial controls basedon the internal control over financial reporting criteria established by theCompany considering the essentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting issuedby the InstituteofCharteredAccountantsof India (ICAI).These responsibilities include thedesign, implementationandmaintenanceofadequate internalfinancialcontrolsthatwereoperatingeffectivelyfor ensuring the orderly and efficient conduct of its business, including adherence toCompany’s policies, thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.
Auditor’s Responsibility
OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting (the “GuidanceNote”) and theStandardsonAuditing, issuedby ICAIandprescribedunder section143(10)of theCompaniesAct, 2013, to the extent applicable to an auditof internalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsof India.Those standards and theGuidanceNote require thatwe complywith ethicalrequirementsandplanandperformtheaudit toobtainreasonableassuranceaboutwhetheradequate internalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyin all material respects.
Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudor error.
WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolsystemoverfinancialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationofstandalonefinancialstatementforexternalpurposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancialcontroloverfinancial reporting includes thosepolicies andprocedures that (1)pertain to themaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationofstandalonefinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthestandalonefinancialstatements.
73
MECON
MECON Limited
Limitations of Internal Financial Controls over Financial Reporting
Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthatinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Opinion
Inouropinion, theCompanyhas, inallmaterial respects, anadequate internalfinancial controls systemoverfinancialreportingandsuch internalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch, 2019, based on the internal controls over financial reporting criteria established by theCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialcontrolsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C
Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433
74
MECON
COMPTROLLER AND AUDITOR GENERAL OF INDIA’s COMMENTS
ThepreparationoffinancialstatementsofMECONLimitedfortheyearended31March2019inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act) is theresponsibilityof themanagementofthecompany.ThestatutoryauditorsappointedbytheComptrollerandAuditorGeneralofIndiaunderSection139(5)oftheActareresponsibleforexpressingopiniononthefinancialstatementsunderSection143oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedunderSection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated11September2019.
I, on behalf of the Comptroller andAuditor General of India, have conducted a supplementary audit of thefinancialstatementsofMECONLimitedfortheyearended31March2019underSection143(6)(a)oftheAct.Thissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersofthestatutoryauditors and is limitedprimarily to inquiriesof the statutoryauditors andcompanypersonnel anda selectiveexaminationofsomeoftheaccountingrecords.
Onthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’reportunderSection143(6)(b)oftheAct.
For and on behalf of the Comptroller and Auditor General of India
Place : Ranchi
Date : 28th September, 2019
(Indu Agrawal) Principal Director of Commercial Audit
& Ex-officio Member, Audit Board, Ranchi.
75
MECON
MECON Limited
BALANCE SHEET AS AT 31ST MARCH, 2019(₹ in lakhs)
PARTICULARS NOTE NO. AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017 I. ASSETS(1) Non-Current Assets
(a) Property, Plant and Equipment 3 6,951.80 7,392.44 7,916.45 (b) Capital Work-in-Progress 4 97.79 12.22 65.51 (c) Investment Property - - - (d) Other Intangible Assets 5 164.57 221.30 254.79 (e) Intangible Assets under Development - - - (f) Financial Assets
i) Investments 6 11.92 11.92 511.92 ii) Trade Receivables 7 15,099.77 11,926.14 9,927.93 iii) Loans 8 228.81 232.31 347.31 iv) Other Financial Assets 9 - 15,340.50 7,305.92 19,476.29 1.02 10,788.18
(g) Deferred Tax Assets (Net) 10 8,240.12 7,619.02 5,031.27 (h) Other Non-Current Assets 11 2,048.42 878.62 1,018.29
(2) Current Assets (a) Inventories 12 145.91 148.47 153.21 (b) Financial Assets
i) Investments - - - ii) Trade Receivables 13 29,486.34 26,671.75 17,862.72 iii) Cash and Cash Equivalents 14 730.17 2,891.01 233.10 iv) Other Bank Balances 15 53,412.12 48,085.67 55,982.94 v) Loans 16 758.09 753.68 566.96 vi) Other Financial Assets 17 8,153.36 92,540.08 1,336.26 79,738.37 1,463.86 76,109.58
(c) Current Tax Assets (Net) 18 9,706.90 7,727.66 8,545.51 (d) Other Current Assets 19 8,269.37 7,633.30 4,974.31 TOTAL ASSETS 143,505.46 130,847.69 114,857.10
II. EQUITY AND LIABILITIES(A) EQUITY
(a) Equity Share Capital 20 4,013.84 4,013.84 4,013.84 (b) Other Equity 21 30,032.11 34,045.95 16,570.23 20,584.07 10,634.02 14,647.86
(B) LIABILITIES (1) Non-Current Liabilities
(a) Financial Liabilities i) Borrowings - - - ii) Trade Payables 22
(A) Total outstanding dues of micro enterprises and small enterprises
1,279.31 1,256.40 1,032.15
(B) Total outstanding dues of creditors other than micro enterprises and small enterprises
5,828.73 6,249.79 6,202.25
iii) Other Financial Liabilities 23 928.45 8,036.49 883.33 8,389.52 4,964.92 12,199.32 (b) Provisions 24 40,641.10 38,050.17 33,354.16 (c) Deferred Tax Liabilities (Net) 10 - - - (d) Other Non-Current Liabilities 25 2,356.03 4,241.00 4,366.89
(2) Current Liabilities (a) Financial Liabilities
i) Borrowings - - - ii) Trade Payables 26
(A) Total outstanding dues of micro enterprises and small enterprises
2,549.04 2,762.35 1,479.42
(B) Total outstanding dues of creditors other than micro enterprises and small enterprises
8,998.05 9,761.56 11,298.34
iii) Other Financial Liabilities 27 27,465.24 39,012.33 14,923.24 27,447.15 8,169.15 20,946.91 (b) Other Current Liabilities 28 11,262.71 13,444.46 10,893.67 (c) Provisions 29 8,150.85 18,691.32 18,448.29 (d) Current Tax Liabilities (Net) 18 - - -
TOTAL EQUITY AND LIABILITIES 143,505.46 130,847.69 114,857.10 Note No.1 to 40 form an integral part of Financial Statements In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS
Sd/- (PRAVEER RANJAN)
PARTNER Memb.No.076295
Firm Regn. No.000980C
Sd/- (RAVI BAMBHA)
COMPANY SECRETARY
Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C
(FINANCE)
Sd/- (R. H. JUNEJA)
DIRECTOR (FINANCE)
Sd/- (ATUL BHATT)
CHAIRMAN and MANAGING DIRECTOR
Place : RanchiDate : 11th September, 2019 UDIN : 19076295AAAAAB1433
76
MECON
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2019
(₹ in lakhs) PARTICULARS NOTE NO. Current Year Previous Year
I. Revenue from Operations 30 47,920.36 48,037.08
II. Other Income 31 5,119.69 10,924.95
III. TOTAL INCOME (I+II) 53,040.05 58,962.03
IV. EXPENSES:
(a) Purchases of Equipments & Direct Expenses 32 9,070.36 13,768.34
(b) (Accretion)/Decretion to Jobs-in-Progress 33 1,992.28 (78.40)
(c) Employee Benefits Expenses 34 28,822.45 31,387.78
(d) Finance Costs 35 142.11 165.91
(e) Depreciation and Amortisation Expenses 36 766.33 935.46
(f) Other Expenses 37 11,249.08 8,381.11
TOTAL EXPENSES (IV) 52,042.61 54,560.20
V. Profit/(Loss) before exceptional items and tax (III-IV) 997.44 4,401.83
VI. Exceptional Items — –
VII. Profit/(Loss) before tax (V-VI) 997.44 4,401.83
VIII. Tax Expense:
(a) Current Tax 1,588.12 1,187.25
(b) Deferred Tax (1,964.69) (2,587.75)
(c) Taxes relating to Earlier Years - -
IX. Profit/(Loss) for the year (VII-VIII) 1,374.01 5,802.33
X. Other Comprehensive Income
(a) Items that will not be reclassified to Profit and Loss
Re-measurement of Defined Benefit Plans (203.14) 133.88
(b) Income tax relating to items that will not be reclassified to Profit and Loss
Re-measurement of Defined Benefit Plans 43.77 -
XI. Total Comprehensive Income for the year (IX+X) 1,214.64 5,936.21
XII. Earnings per equity share (Face Value ` 10/- each) 40.13
Basic & Diluted (`) 3.42 14.46
Note No.1 to 40 form an integral part of Financial Statements
In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS
Sd/- (PRAVEER RANJAN)
PARTNER Memb.No.076295
Firm Regn. No.000980C
Sd/- (RAVI BAMBHA)
COMPANY SECRETARY
Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C
(FINANCE)
Sd/- (R. H. JUNEJA)
DIRECTOR (FINANCE)
Sd/- (ATUL BHATT)
CHAIRMAN and MANAGING DIRECTOR
Place : Ranchi
Date : 11th September, 2019
UDIN : 19076295AAAAAB1433
77
MECON
MECON Limited
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH 2019
A. EQUITY SHARE CAPITAL (₹ in lakhs)
ParticularsBalance as at 31st
March, 2018
Changes in Equity Share Capital
during the year
Balance as at 31st March, 2019
Equity Share Capital 4,013.84 - 4,013.84
B. OTHER EQUITY (₹ in lakhs)
Particulars
Reserves and SurplusOther
Comprehensive Income
TOTALCapital
Redemption Reserve $
CSR Activity Reserve $$
General Reserve
Retained Earnings
Re measurement of Defined Benefit
Plans
Balance as at 1st April, 2017 6,300.00 15.25 9,852.39 (3,156.88) (2,376.74) 10,634.02
Net Profit / (Loss) during the period - - - 5,802.33 - 5,802.33
Remeasurement of gains / (losses) on Defined Benefit Plans - - - - 133.88 133.88
Dividend on Equity Shares - - - - - -
Dividend Distribution Tax - - - - - -
Transferred from Retained Earnings during the period - - - - - -
Transferred to Retained Earnings during the period - (15.25) - - - (15.25)
Transferred from CSR Activity Reserve during the priod - - - 15.25 - 15.25
Transferred to CSR Activity Reserve during the period - - - - - -
Transferred to General Reserve - - - - - -
Adjusted / written back on Revaluation Reserve - - - - - -
Balance as at 31st March, 2018 6,300.00 - 9,852.39 2,660.70 (2,242.86) 16,570.23
Adjustment due to Ind AS Implementation - - - 13,485.57 - 13,485.57
Net Profit / (Loss) during the period - - - 1,374.01 - 1,374.01
Remeasurement of gains / (losses) on Defined Benefit Plans - - - - (159.37) (159.37)
Dividend on Equity Shares - - - (1,027.19) - (1,027.19)
Dividend Distribution Tax - - - (211.14) - (211.14)
Transferred from Retained Earnings during the period - 87.96 - - - 87.96
Transferred to Retained Earnings during the period - (16.92) - - - (16.92)
Transferred from CSR Activity Reserve during the period - - - 16.92 - 16.92
Transferred to CSR Activity Reserve during the period - - - (87.96) - (87.96)
Transferred to General Reserve - - - - - –
Adjusted / written back on Revaluation Reserve - - - - - –
Balance as at 31st March, 2019 6,300.00 71.04 9,852.39 16,210.91 (2,402.23) 30,032.11
$ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act.$$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc.
Note No.1 to 40 form an integral part of Financial StatementsIn terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS
Sd/- (PRAVEER RANJAN)
PARTNER Memb.No.076295
Firm Regn. No.000980C
Sd/- (RAVI BAMBHA)
COMPANY SECRETARY
Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C
(FINANCE)
Sd/- (R. H. JUNEJA)
DIRECTOR (FINANCE)
Sd/- (ATUL BHATT)
CHAIRMAN and MANAGING DIRECTOR
Place : RanchiDate : 11th September, 2019 UDIN : 19076295AAAAAB1433
78
MECON
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2019 (Indirect Method)
(₹ in lakhs)
2018-19 2017-18
Cash Flows from Operating Activities
Net Profit/(Loss) before Taxation 997.44 4,401.83
Add : Adjustments for
Depreciation & Amortisation 766.33 935.46
Loss on Sale/Disposal of Fixed Assets 0.17 2.02
Provision for Bad & Doubtful Trade Receivables / ECL 2,644.03 651.96
Provision for impairment in the value of Investments - 500.00
Other Provisions 2,438.20 926.98
Finance Costs 142.11 165.91
5,990.84 3,182.33
Less : Adjustments for
Profit on Sale/Disposal of Fixed Assets 5.16 0.69
Interest Income 3,770.82 3,872.74
Dividend Received 1.60 1.60
3,777.58 3,875.03
Operating Profit/(Loss) before Working Capital Changes 3,210.70 3,709.13
Add : Adjustments for
(Increase) / Decrease in Inventories 2.56 4.74
(Increase) / Decrease in Trade Receivables (9,025.60) (11,459.20)
(Increase) / Decrease in Loans (174.85) (144.82)
(Increase) / Decrease in Other Current Financial Assets 2,655.02 127.60
(Increase) / Decrease in Tax Assets (3,523.59) (369.40)
(Increase) / Decrease in Other Non-Financial Assets (2,424.83) (2,870.87)
Increase / (Decrease) in Trade Payables (1,374.98) 17.94
Increase / (Decrease) in Financial Liabilities 4,149.15 2,242.11
Increase / (Decrease) in Provisions 3,090.36 5,072.92
Increase / (Decrease) in Non-Financial Liabilities (2,766.69) 2,352.96
(9,393.45) (5,026.02)
Cash Generated from Operations (6,182.75) (1,316.89)
Less : Taxes Paid - -
Net Cash from Operating Activities {A} (6,182.75) (1,316.89)
79
MECON
MECON Limited
2018-19 2017-18
Cash Flows from Investing Activities
Purchase of Property, Plant & Eqpt. and Intangible Assets
(371.18) (329.28)
Property, Plant & Eqpt. and Intangible Asset sold/discarded
21.64 3.28
(Increase) / Decrease in Deposits with Bank 2,440.41 154.10
Interest Received 3,309.88 4,311.01
Dividend Received 1.60 1.60
Net Cash from Investing Activities {B} 5,402.35 4,140.71
Cash Flows from Financing Activities
Dividend including Dividend Tax Paid (1,238.33) -
Finance Costs (142.11) (165.91)
Net Cash from Financing Activities {C} (1,380.44) (165.91)
Net Increase/(Decrease) in Cash & Cash Equivalent {A}+{B}+{C} (2,160.84) 2,657.91
Cash and Cash Equivalent at the beginning 2,891.01 233.10
Cash and Cash Equivalent at the end 730.17 2,891.01
Note No.1 to 40 form an integral part of Financial Statements
Cash & Cash Equivalent represents
i) Cash at Bank (Current A/c & Flexi Deposit A/c) 724.61 2,882.19
ii) Cheques & Drafts on hand - -
iii) Cash & Stamps on hand 5.56 8.82
730.17 2,891.01
In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS
Sd/- (PRAVEER RANJAN)
PARTNER Memb.No.076295
Firm Regn. No.000980C
Sd/- (RAVI BAMBHA)
COMPANY SECRETARY
Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C
(FINANCE)
Sd/- (R. H. JUNEJA)
DIRECTOR (FINANCE)
Sd/- (ATUL BHATT)
CHAIRMAN and MANAGING DIRECTOR
Place : Ranchi
Date : 11th September, 2019
UDIN : 19076295AAAAAB1433
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2019 (Indirect Method) (Contd.)
(₹ in lakhs)
80
MECON
NOTE 1 : CORPORATE AND GENERAL INFORMATION
MECON LIMITED (“the Company”) is India’s frontline Consultancy, Engineering & EPC Solution provideracrosssectors,withextensivecapabilitiesinSteelIndustry.TheCompany,awhollyownedGovernmentofIndiaEnterpriseunderMinistryof Steel, thatwas incorporatedon31stMarch, 1973 and is domiciled in India.TheCompanyhasitsregisteredofficesituatedatVivekanandaPath,Doranda,Ranchi–834002,Jharkhand,India.TheCompanyoperatesinthreemajorsegments,namely,Metals,Energy&Infrastructure.
Thesefinancialstatementsfortheperiodended31stMarch,2019wereapprovedforissuebytheBoardofDirectorsoftheCompanyintheirmeetingheldon6thSeptember,2019.
NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1.1 Statement of Compliance
Thefinancialstatementsareprepared inaccordancewithgenerallyacceptedaccountingprinciples inIndia,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct,2013/1956andrelevantrulesasapplicable.
1.2 Basis of Measurement
Thefinancialstatementsarepreparedonagoingconcernbasisandonaccrualbasisofaccountingunderthehistoricalcostconceptexceptasotherwisementionedinthepolicy.
1.3 Functional and Presentation Currency
TheamountsinfinancialstatementsandnotesarepresentedinIndianRupees(INR)(₹)whichisthefunctionalcurrencyoftheCompany.AllfinancialinformationpresentedinINR(₹)hasbeenroundedofftothenearestINR₹inlakhswithtwodecimalplaces,exceptasotherwisestated.
1.4 Use of Estimates and Management Judgment Inpreparing thefinancial statements in conformitywith accountingprinciples generally accepted in
India,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct2013/1956andrelevantrulesasapplicable,theCompanymakesbestestimates,assumptionsandjudgmentsthatmayaffectthereportedamountofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesasatthereportingdateandtheamountofrevenueandexpensesduringthereportingperiod.Theestimates and judgments arebasedonprevious experience andother factors consideredreasonableandprudentinthecircumstances.Actualresultinsomecasesmaydifferfromsuchestimates.
Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Anyrevisionofsuchestimatesisrecognisedduringtheperiodinwhichthesameisdetermined.
In order to enhance understanding of the financial statements, information about significant areasof estimation,uncertainty and critical judgments in applying accountingpolicies thathave themostsignificanteffectontheamountsrecognisedinthefinancialstatementsareasfollows:
1.4.1 Revenue The company recognizes revenue over time by measuring the progress towards satisfaction of the
performanceobligationdependinguponthenature/scope,etc.ofjob.1.4.2 Defined Benefit Obligations Employeebenefitobligationsaremeasuredonthebasisofactuarialassumptionswhichincludemortality
andwithdrawalratesaswellasassumptionsconcerningfuturedevelopmentsindiscountrates,medicalcosttrends,anticipationoffuturesalaryincreaseandtheinflationrate.However,anychangesintheseassumptionsmayhaveimpactontheresultingcalculations.
1.4.3 Provisions and Contingencies Assessmentsundertakeninrecognizingprovisionsandcontingencieshavebeenmadeasperthebest
judgementbasedonthecurrentinformationasavailable.
81
MECON
MECON Limited
1.5 Current and Non-Current Classification
1.5.1 AllitemsofassetsandliabilitiesintheBalanceSheetareclassifiedasCurrentandNon-currentasperrequirementoftheCompaniesAct,2013,asapplicable.
1.5.2 Normaloperatingcycleofthecompanyisconsidered12monthskeepinginviewpastexperienceandnatureofbusinessoftheCompany.
1.5.3 TradeReceivables(i.e.duesarisingonlyfromclientsinthenormalcourseofbusiness)outstandingforaperiodexceeding sixmonths isdeterminedafter taking intoaccount30daysnormalcreditperiodallowedbytheCompany.
1.5.4 DuesonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusinessaretreatedasTrade Payables.
2. PROPERTY, PLANT AND EQUIPMENT
2.1 Recognition
2.1.1 ItemsofProperty,PlantandEquipmentareinitiallyrecognisedatcostandsubsequentlycarriedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses,ifany.Costcomprisesanydirectlyattributablecostsnetoftax/dutycreditavailedandincludesborrowingcostswhichmeetcapitalizationcriteria, expenses incidental to acquisition, installation, etc. of bringing the items of Property, Plantand Equipment to the location and working condition for its intended use but excludes training,administrationandoverheadcosts.
2.1.2 Deposits/payments/liabilitiesmadetowardscompensation,rehabilitation,etc.relatingtoacquisitionoflandaretreatedascostoflandintheperiodinwhichtheyoccur.
2.1.3 Itemsofmajorspareparts,stand-byequipmentandservicingequipmentwhichmeetthedefinitionofProperty,PlantandEquipmentarecapitalised.Otherwise,theyareclassifiedasinventoriesinaccordancewithIndAS–2.
2.1.4 ItemsofProperty,PlantandEquipmentpurchasedduringtheyearcostingupto₹1,000/-eachitemarechargedtorevenue.
2.1.5 Thecostof any softwarepurchasedalongwith the computerhardware,beingan integralpartof thehardware,iscapitalizedalongwiththecostofthehardware.
2.1.6 ItemsofProperty,PlantandEquipmentheldunderfinanceleasearerecognisedasperIndAS-17.
2.1.7 AdvancespaidtowardstheacquisitionofProperty,PlantandEquipmentandoutstandingateachBalanceSheetdateareclassifiedas“CapitalAdvances”underNon-CurrentAssets.
2.2 Subsequent Costs
2.2.1 Subsequent major expenditure on items of Property, Plant and Equipment fulfilling the criteria ofrecognition is recognised as an increase in the carrying amount of the items of Property, Plant andEquipment.
2.2.2 Thecostsoftheday-to-dayservicingofProperty,PlantandEquipmentarerecognisedasexpensesintheStatementofProfitandLossasandwhentheyareincurred.
2.3. Derecognition
2.3.1 Items of Property, Plant and Equipment are derecognised on disposal or when no future economicbenefits are expected from its intendeduse.Gains / losses ondisposal of an itemofProperty,PlantandEquipmentaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountofProperty,PlantandEquipment,andarerecognisedintheStatementofProfitandLoss.
2.3.2 ItemsofProperty,PlantandEquipmentheldforimmediatesaleinthepresentcondition,theirsaleishighlyprobableandtheircarryingamountwillberecoveredprincipallythroughasaletransactionareclassifiedseparatelyas“Non-CurrentAssetsHeldforSale”attheloweroftheircarryingamountandfairvaluelesscoststosale.
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2.4 Depreciation
2.4.1 DepreciationonProperty,PlantandEquipmentiscommencedwhenitisavailableforintendeduseandisprovidedforunder“Straight-LineMethod”,consideringresidualvalueof5%oftheoriginalcostoftheProperty,PlantandEquipment,overtheusefullifeoftheProperty,PlantandEquipmentinlinewithScheduleIIoftheCompaniesAct,2013andrelevantrulesasapplicable.
2.4.2 ItemsofProperty,PlantandEquipmentcostingabove₹1,000/-eachitemandupto₹5,000/-eachitemarefullydepreciatedintheyearofacquisition.
2.4.3 ItemsofProperty,PlantandEquipmentheldunderFinanceLeasearedepreciatedasperScheduleIIoftheCompaniesAct,2013.However,ifthereisnoreasonablecertaintythattheCompany(lessee)willobtaintheownershipbytheendoftheleaseterm,theassetisfullydepreciatedovertheleasetermoritsusefullife,whicheverisshorter.
2.4.4 WherecostofapartofanitemofProperty,PlantandEquipmentissignificantinrelationtothetotalcostoftheitemandusefullifeofthatpartisdifferentfromtheusefullifeoftheremainingasset,usefullifeofthatsignificantpartisdeterminedseparatelyforcomputationofdepreciation.
2.4.5 Depreciationonadditionsto/deductionsfromProperty,PlantandEquipmentduringtheyearischargedonpro-ratabasisfrom/uptothedateonwhichtheassetisavailableforuse/disposed.
2.4.6 DepreciationonsubsequentcostofanitemofProperty,PlantandEquipmentcapitalizedischargedoffprospectivelyovertheremainingusefullifeofmainitemofProperty,PlantandEquipment.
2.4.7 DepreciationonProperty,PlantandEquipmentwhichisdeclaredidleorretiredfromactiveuse,butnotclassifiedasheldforsaleinaccordancewithIndAS–105,ischargedoffovertheremainingusefullifeofthatProperty,PlantandEquipment.
2.4.8 Depreciation onProperty, Plant andEquipment is ceased at the earlier of, the date that the asset isclassifiedasheldforsaleinaccordancewithIndAS–105andthedatethattheassetisde-recognised.
2.5 Capital Work-In-Progress
ThecostofconstructionofProperty,PlantandEquipmentsincurredtilltheyarereadyfortheirintendedusearerecognisedasCapitalWork-in-Progress.
3. INTANGIBLE ASSETS
3.1 Recognition
3.1.1 Expenditureincurredonacquisitionoftechnicalknow-how,engineeringmaterials,computersoftware(whichisnotanintegralpartofrelatedhardware),etc.istreatedasintangibleasset.
3.1.2 IntangibleassetsthatareacquiredbytheCompany,whichhavefiniteusefullives,arerecognisedatcost.Subsequentmeasurementisdoneatcostlessaccumulatedamortizationandaccumulatedimpairmentlosses,ifany.Costincludesanydirectlyattributableexpensesnecessarytomaketheassetsreadyforitsintendedusebutexcludestraining,administrationandoverheadcosts.
3.1.3 Expenditureincurredonresearch&developmentactivitiesareaccountedasexpensesintheStatementofProfitandLoss.
3.2 Derecognition
Anintangibleassetisderecognisedwhennofutureeconomicbenefitsareexpectedfromtheirintendeduseorupontheirdisposal.Gains/lossesondisposalofanitemofintangibleassetaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountofintangibleassetsandarerecognisedintheStatementofProfitandLoss.
3.3 Amortisation
3.3.1 Amortisationiscommencedfromthedatetheintangibleassetisavailableforintendeduse.3.3.2 Expenditureincurredonacquisitionofsoftwareisamortisedonstraightlinemethodoveraperiodof
fiveyearsoritslicenseperiod,whicheverisless.However,softwareindividuallycostingupto₹5,00,000/-eachisfullyamortisedintheyearofacquisition.
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3.3.3 Expenditureincurredonacquisitionofotherintangibleassetsisamortisedoveraperiodoffiveyearsonstraightlinemethod.
4. BORROWING COST
4.1 BorrowingcostsincurredbytheCompanywhicharedirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalizedaspartofthecostofthatasset.
4.2 Otherborrowingcostsarerecognisedasexpenseintheperiodinwhichtheseareincurred.
5. IMPAIRMENT OF NON-FINANCIAL ASSETS
TheCompanyreviewsthecarryingamountofitsnon-financialassets,whenevercircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverable.Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognisedismeasuredbytheamountbywhichthecarryingamountoftheassetsexceedsthehigherofitsfairvaluelesscoststosellanditsvalueinuse.Ifitisfoundthatsomeoftheimpairmentlossesalreadyrecognisedneedtobereversed,thesamearerecognisedintheStatementofProfit&Lossintheyearofreversal.
6. INVENTORIES
6.1 Closingstockofstores&spares,printing&stationeryitemsandotherconsumablesarevaluedatlowerofcost,onFirst inFirstOut (FIFO)basis,andnet realisablevalue.Consumptionof theabove itemsduring the reportingperiod is arrivedatbydeducting thevalueofphysical stock inhandason thereportingdatefromtheaggregatevalueofopeningstockandpurchasesduringthereportingperiod.
However,spareparts,equipments,etc.arenotconsideredasinventorywhenitisrequiredtobecapitalizedasperIndAS-16.
6.2 Provision for obsolescent / surplus / non-moving inventory ismade based on best estimates of netrealisablevalueofsuchinventories.
7. FOREIGN CURRENCY TRANSACTION AND TRANSLATION
7.1 Foreign currency transactions are translated into the functional currencyof theCompanyusing theexchangerateprevailingatthedateofthetransactionsasapplicable.
7.2 Monetaryassetsandliabilitiesdenominatedinforeigncurrencyaretranslatedatthefunctionalcurrencyrate of exchange at the reporting date as applicable. Exchange differences arising on settlement ortranslationofmonetaryitemsarerecognisedintheStatementofProfitandLossintheyearinwhichitarises.
7.3 Non-monetaryassetsandliabilitiesdenominatedinforeigncurrencyandmeasuredathistoricalcostaretranslatedusingtheexchangerateatthedateofthetransactionasapplicable.
8. REVENUE & OTHER INCOME RECOGNITION
TheCompanyderivesitsrevenuefromdesign,engineering&consultancyservices,executionofEPCprojects/constructioncontracts,projectmanagement&consultancyservices.Otherincomecomprisesinterestondepositswithbanks/financial institutions/employees,dividendfrominvestments,othermiscellaneous income, etc.
8.1 Engineering / Consultancy Services
8.1.1 RevenuefromEngineering&ConsultancyservicesrenderedtotheclientsagainstcontractsorLettersofIntentorWorkordersorexchangeofletterswhichstipulatelumpsumfeeisrecognizedovertimeusingoutputmethodbasedonsatisfactionoftheperformanceobligation/righttoreceivepayment.However,revenueshallberecogniseduptothevalueofinvoicesraisedafteradjustmentofdownpaymentinvoicesonproportionatebasis,unlessstatedotherwiseinthecontract.
8.1.2 Revenue from services rendered other than lump sum fee basis (including reimbursable jobs) isrecognizedat100%valueoftheinvoicesraisedtowardssatisfactionoftheperformanceobligation.
8.2 Execution of Projects / Construction Contracts
8.2.1 Revenue from execution of projects/ construction contracts (including sale of spares) for the clients
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againstcontractsorlettersofintentorworkordersorexchangeofletterswhichstipulatefixedpriceisrecognizedovertimeusingoutputmethodbasedonsatisfactionoftheperformanceobligation.
8.2.2 Revenuefromcostplusconstructioncontracts/depositworkswithturnkeyscopeisrecognizedtotheextentofamountbilledasperidentifiedperformanceobligationonthebasisofcontractsorlettersofintentorworkordersorexchangeoflettersreceivedfromclients
8.3 Revenueonaccountofescalation,additionalorextraclaimsetc.fromclientsandothermiscellaneousitemslikeprojectinsuranceclaimsetc.arerecognizedat100%valueasandwhentheyareadmitted.
8.4 Incaseswhereminimumundisputedtermsareagreedtobytheclient,revenueisaccountedforonthebasisofsuchundisputedterms.
8.5 Where liquidated damages arises out of contractual terms when the work is not completed withinthecompletionscheduleorfornon-achievementofanyparameter,theliquidateddamagesamountisadjustedfromthecontractfeeforrevenuerecognition.
8.6 Other Income
Dividend income from Investments is recognized as and when the right to receive the payment isestablished.
9. JOB-IN-PROGRESS
9.1 Wheretheprogresshasbeenachieved(onthebasisoftechnicalestimate)inrespectofajobbutclaimforpaymentaspercontractdoesnotarise,lowerofcostorvalueoftheworkdonebasedonpercentageofprogress,iscarriedforwardunderJob-in-Progress.However,Job-in-Progressisrecognisedconsidering90%valueonly,unlesstechnicalestimatehasreached100%.
9.2. Where thework is started on the basis of job allotted by LOI / any other communication from theclient,butthefeeisyettobesettled,thecostincurredagainstsuchjobsiscarriedforwardunderJob-in-Progress.
10. EMPLOYEE BENEFITS
10.1 Post-Employment Benefits
10.1.1 Defined Contribution Plan
Contributionspaid/payableunderdefinedcontributionplanisrecognisedonthebasisofactualliabilityonundiscountedbasisinthereportingperiodinwhichtheyareincurredandchargedtoprofitandloss.
10.1.2 Defined Benefit Plans
TheCompanyhaspost-retirementdefinedbenefitplanscomprisingRetirementGift,Post-RetirementSettlementBenefits,Post-RetirementMedicalBenefits,Gratuity andProvidentFund to the extentofinterestliabilityonprovidentfundcontribution.
Employeebenefitsexpensesunderpost-retirementdefinedbenefitplansare recognisedbasedon theactuarialvaluationasper IndAS–19asat theendof thereportingperiodusing theprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinothercomprehensiveincomeintheperiodinwhichtheyarise.
10.2 Other Long-Term Employee Benefits
Otherlong-termemployeebenefitsunderdefinedbenefitplanscomprisesof leaveencashment, long-serviceaward,leavetravelconcession/leavetravelassistanceandemployeefamilybenefitschemes.
Employeebenefitsunderother long-termdefinedbenefitplansarerecognisedbasedontheactuarialvaluationasattheendofthereportingperiodusingtheprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinprofitandlossintheperiodinwhichtheyarise.
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10.3 Short-Term Employee Benefits
Short-termbenefitscompriseofemployeecostssuchassalaries,bonus,etc.areaccruedintheyearinwhichtheassociatedservicearerenderedbyemployees.
10.4 Termination Benefits
Expensesarerecognised for terminationbenefits(includingVoluntaryRetirementCompensation) intheperiodinwhichitisincurred.
11. MATERIAL PRIOR PERIOD ERRORS
11.1 Anyexpenditureor incomewhichexceeds0.5%of turnover ineachcase,whicharise in thecurrentperiodasaresultoferrorsoromissionsinthepreparationoffinancialstatementsofoneormorepriorperiods, are treated as material prior period errors.
11.2 Materialpriorperioderrorsarecorrectedretrospectivelybyrestatingthecomparativeamountsforthepriorperiodspresented inwhich the erroroccurred. If the erroroccurredbefore the earliestperiodpresented, the opening balances of assets, liabilities and equity for the earliest period presented, arerestated.
11.3 A prior period error shall be corrected by retrospective restatement except to the extent that it isimpracticabletodetermineeithertheperiod-specificeffectsorthecumulativeeffectoftheerror.
12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
12.1 Provisionsforestimatedliabilitiesonaccountofguarantees&warrantiesetc.inrespectofEngineering&ConsultancyServicesandTurnkeyContractsaremadebythecompanyafterassessmentofriskandconsequentialprobableliabilitiesoncasetocasebasis.
12.2 Provisionsforliquidateddamagesaremadeasandwhenthesearedeductedand/orconsidereddeductiblebytheclientaspercontract.
12.3 Suppliers’/contractors’claimsforpriceescalation,additionalorextraclaims,etc.areaccountedfortotheextentsuchclaimsareacceptedbytheCompany.
12.4 Where the effect of time value ofmoney ismaterial, provisions are determined andmaintained bydiscountingtheexpectedfuturecashflows,whereverapplicable.
12.5 Contingent Liabilities / Contingent Assets are disclosed on the basis of best judgement. These arereviewedateachbalancesheetdateandareadjustedtoreflectthecurrentestimate.
13. INCOME TAXES
13.1 Incometaxexpensecomprisescurrentanddeferredtax.Currenttaxexpenseisrecognisedinthestatementofprofitandlossexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinothercomprehensiveincome(OCI)orequity,inwhichcaseitisrecognisedinOCIorequity.
13.2 Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantivelyenactedandasapplicableatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.
13.3 Deferredtaxisrecognisedusingthebalancesheetmethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtotemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedbythereportingdate.Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthority.
13.4 DeferredtaxisrecognisedinthestatementofprofitandlossexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinOCIorequity,inwhichcaseitisrecognisedinOCIorequity.
13.5 Deferredtaxassetsarerecognisedtotheextentthatitisprobablethattheunderlyingtaxloss,unusedtaxcreditsordeductibletemporarydifferencewillbeutilisedagainstfuturetaxableincome.ThisisassessedbasedontheCompany’sforecastoffutureoperatingresults,adjustedforsignificantnon-taxableincomeandexpensesandspecificlimitsontheuseofanyunusedtaxlossorcredit.
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13.6 Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealized.
13.7 Additionalincometaxesthatarisefromthedistributionofdividendsarerecognisedatthesametimethattheliabilitytopaytherelateddividendisrecognised.
14. LEASES
14.1 Company as a Lessee
14.1.1 Finance Lease
Asset acquired on lease where substantially all the risks and rewards incidental to ownership aretransferredbythelessortotheCompanyisclassifiedunderfinancelease.Attheinceptionofthelease,financeleaseisrecordedatamountequaltothefairvalueoftheleasedassetor,iflower,thepresentvalueoftheminimumleasepayments.
TheinterestelementofleasepaymentsischargedtoStatementofProfitandLoss,asfinancecostsovertheperiodofthelease.
14.1.2 Operating Lease
Assetacquiredon leasewhereasignificantportionofriskandrewardsofownershipareretainedbythelessorisclassifiedunderoperatinglease.LeaserentalarechargedtoStatementofProfitandLossonstraight-linebasisexceptwherescheduledincreaseinrentcompensatethelessorforexpectedinflationarycosts.
14.2 Company as a Lessor
14.2.1 Operating Lease
Asset givenon leasewhere theCompanydoesnot transfer substantially all the risks and rewardsofownershipoftheassetisclassifiedunderoperatinglease.Receiptsunderoperatingleasearerecognizedin theStatementofProfitandLossonstraight linebasisover the lease termexceptwherescheduledincreaseinrentcompensatestheCompanywithexpectedinflationarycosts.
15. DIVIDENDS
DividendspayabletotheshareholdersoftheCompanyarerecognisedaschangesinequityintheperiodinwhichtheyareapprovedbytheBoardofDirectorsandtheShareholder’sMeetingrespectively.
16. STATEMENT OF CASH FLOWS
StatementofCashFlowsispreparedunder“IndirectMethod”inaccordancewithIndAS–7“StatementofCashFlows”.
17. FINANCIAL INSTRUMENTS
Afinancial instrument isanycontract thatgivesrise toafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.
17.1 Financial Assets
17.1.1 Initial Recognition
Financial assets are recognised initially at fair value and transaction cost that is attributable to theacquisitionofthefinancialassetisalsoadjusted.
17.1.2 Subsequent Measurement Subsequent to initial recognition, all financial assets aremeasured either at amortised cost or at fair
value.Wherefinancialassetsaremeasuredatfairvalue,gainsandlossesarerecognisedentirelyinprofitandloss(fairvaluethroughprofitandloss,FVTPL).
Effectiveinterestrate(EIR)methodformeasurementisusedforfinancialassetsmeasuredatamortisedcost.Theeffectiveinterestrate(EIR)amortizationisincludedinthefinanceincomeintheprofitandloss.
Equityinvestmentsinsubsidiariesandjointventuresaremeasuredatcost.
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17.1.3 Derecognition
AfinancialassetisprimarilyderecognisedwhentherighttoreceivecashflowsfromthefinancialassethasexpiredortheCompanyhastransferreditsrightstoreceivecashflowsfromthefinancialasset.
17.1.4 Impairment of financial assets
Trade Receivables
As a practical expedient theCompany has adopted ‘simplified approach’ using the provisionmatrixmethodforrecognitionofexpectedlossontradereceivables.
Investment in subsidiaries, joint ventures and associates
TheCompanyassesseswhetherthereisanyindicationthattheseinvestmentsarebeimpaired.Ifanysuchindicationexists,theinvestmentisconsideredforimpairmentbasedonthefairvaluethereof.
Other Financial Assets
Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theCompanydetermineswhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognitionandifcreditriskhasincreasedsignificantly,impairmentlossisprovided.
ThelossesarisingfromimpairmentarerecognisedintheStatementofProfitandLoss.
17.2 Financial Liabilities
17.2.1 Initial Recognition
Financial liabilitiesarerecognisedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionoffinancialliabilitiesisalsoadjusted.
17.2.2 Subsequent measurement
Financialliabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.GainsandlossesarerecognisedinprofitandlosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortizationprocess.
17.2.3 Derecognition
Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferent terms, or the terms of an existing liability are substantiallymodified, such an exchange ormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.Thedifferenceintherespectivecarryingamountsisrecognisedinthestatementofprofitandloss.
17.3 Offsetting of Financial Instruments:
Financialassetsandfinancial liabilitiesareoffsetandthenetamountisreportedinthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealizetheassetandsettletheliabilitysimultaneously.Thelegallyenforceablerightmustnotbecontingentonfutureeventsandmustbeenforceableinthenormalcourseofbusinessandintheeventofdefault,insolvencyorbankruptcyofthecounterparty.
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3.R
oad,
Brid
ges
& C
ulve
rts
0.5
5 -
-
-
0
.55
0.5
3 -
-
-
0
.53
0.0
2 0
.02
4.W
ater
Sup
ply
and
Sew
erag
e 3
6.17
-
-
-
3
6.17
1
1.03
-
-
2
.12
13.
15
23.
02
25.
14
5.Fu
rnitu
re &
Fix
ture
s 1
,119
.79
1.0
9 0
.17
-
1,1
20.7
1 7
95.4
6 0
.17
-
60.
62
855
.91
264
.80
324
.33
6.M
otor
Veh
icle
s 6
7.74
-
-
-
6
7.74
3
3.62
-
-
7
.21
40.
83
26.
91
34.
12
7.O
ffice
Equ
ipm
ents
952
.81
19.
98
5.3
4 -
9
67.4
5 6
50.5
2 4
.44
-
85.
42
731
.50
235
.95
302
.29
8.Co
mpu
ter
Har
dwar
e 2
,327
.13
16.
09
6.6
4 -
2
,336
.58
1,8
95.9
8 4
.28
-
179
.14
2,0
70.8
4 2
65.7
4 4
31.1
5
9.La
bora
tory
Equ
ipm
ents
591
.85
-
0.1
4 -
5
91.7
1 3
74.5
7 -
-
2
8.81
4
03.3
8 1
88.3
3 2
17.2
8
10.
Elec
tric
al In
stal
latio
n 1
,265
.47
86.
15
3.5
1 -
1
,348
.11
661
.09
2.3
2 -
9
8.71
7
57.4
8 5
90.6
3 6
04.3
8
11.
Mis
c. A
rtic
les
incl
udin
g Li
brar
y 2
09.5
0 0
.83
0.0
1 -
2
10.3
2 1
97.5
9 -
-
2
.03
199
.62
10.
70
11.
91
TOTA
L 9
,415
.08
161
.38
15.
81
(186
.53)
9,3
74.1
2 5
,693
.12
11.
21
(69.
21)
579
.52
6,1
92.2
2 3
,181
.90
3,7
21.9
6
90
MECON
Sl.
No.
Part
icul
ars
COST
D
EPR
ECIA
TIO
N
NET
CAR
RYI
NG
AM
OU
NT
As o
n 01
.04.
18
Addi
tion/
Ad
just
-m
ent
Sale
/ Ad
-ju
stm
ent
Inte
r H
ead
Ad-
just
men
t
As o
n 31
.03.
19As
on
01.0
4.18
On
Sale
/ Ad
just
-m
ent
Inte
r H
ead
Ad-
just
men
t
Dur
ing
the
perio
d
Upt
o 31
.03.
19 A
s on
31
.03.
19
As
on
31.0
3.18
1.La
nd 1
97.4
6 6
.21
-
-
203
.67
-
-
-
-
-
203
.67
197
.46
2.Bu
ildin
g 4
,057
.11
5.3
7 5
.22
-
4,0
57.2
6 9
70.6
0 4
.59
-
68.
02
1,0
34.0
3 3
,023
.23
3,0
86.5
1
3.R
oad,
Brid
ges
& C
ulve
rts
318
.12
-
-
-
318
.12
291
.71
-
-
10.
43
302
.14
15.
98
26.
41
4.W
ater
Sup
ply
and
Sew
erag
e 2
83.3
5 2
.51
-
-
285
.86
177
.49
(0.
01)
-
10.
20
187
.70
98.
16
105
.86
5.Fe
nces
82.
20
-
-
-
82.
20
78.
09
-
-
-
78.
09
4.1
1 4
.11
6.Pl
ant &
Equ
ipm
ents
490
.62
7.8
2 -
-
4
98.4
4 2
84.9
8 -
-
2
5.09
3
10.0
7 1
88.3
7 2
05.6
4
7.Fu
rnitu
re &
Fix
ture
s 1
14.1
7 8
.19
-
-
122
.36
79.
85
-
-
7.4
2 8
7.27
3
5.09
3
4.32
8.M
otor
Veh
icle
s 1
.05
-
-
-
1.0
5 0
.88
-
-
0.0
4 0
.92
0.1
3 0
.17
9.O
ffice
Equ
ipm
ents
31.
59
1.7
6 -
-
3
3.35
2
2.36
-
-
3
.17
25.
53
7.8
2 9
.23
10.
Com
pute
r H
ardw
are
20.
20
-
-
-
20.
20
10.
77
(0.
01)
-
2.6
5 1
3.43
6
.77
9.4
3
11.
Elec
tric
al In
stal
latio
n 9
22.8
7 8
.65
-
-
931
.52
391
.75
0.0
1 -
7
1.18
4
62.9
2 4
68.6
0 5
31.1
2
12.
Mis
c. A
rtic
les
incl
udin
g Li
brar
y 6
.22
-
-
-
6.2
2 5
.94
-
– -
5
.94
0.2
8 0
.28
TOTA
L 6
,524
.96
40.
51
5.2
2 —
6,5
60.2
5 2
,314
.42
4.5
8 —
198
.20
2,5
08.0
4 4
,052
.21
4,2
10.5
4
NO
TE
3.2
- P
RO
PE
RT
Y, P
LAN
T A
ND
EQ
UIP
ME
NT
(S
OC
IAL
AM
EN
ITIE
S)
As
on
31st
Mar
ch, 2
019
(₹
in la
khs)
Cont
d...
91
MECON
MECON Limited
As
on
31st
Mar
ch, 2
018
(₹
in la
khs)
Sl.
No.
Part
icul
ars
COST
D
EPR
ECIA
TIO
N
NET
CAR
RYI
NG
AM
OU
NT
As o
n 01
.04.
17
Addi
tion/
Ad
just
-m
ent
Sale
/ Ad
-ju
stm
ent
Inte
r H
ead
Ad-
just
men
t
As o
n 31
.03.
18As
on
01.0
4.17
On
Sale
/ Ad
just
-m
ent
Inte
r H
ead
Ad-
just
men
t
Dur
ing
the
perio
d
Upt
o 31
.03.
18 A
s on
31
.03.
18
As
on
31.0
3.17
1.La
nd 1
97.4
6 -
-
-
1
97.4
6 -
-
-
-
-
1
97.4
6 1
97.4
6
2.Bu
ildin
g 3
,868
.13
2.4
5 -
1
86.5
3 4
,057
.11
832
.98
-
69.
21
68.
41
970
.60
3,0
86.5
1 3
,035
.15
3.R
oad,
Brid
ges
& C
ulve
rts
318
.12
-
-
-
318
.12
228
.81
-
-
62.
90
291
.71
26.
41
89.
31
4.W
ater
Sup
ply
and
Sew
erag
e 2
83.3
5 -
-
-
2
83.3
5 1
67.3
9 -
-
1
0.10
1
77.4
9 1
05.8
6 1
15.9
6
5.Fe
nces
82.
20
-
-
-
82.
20
78.
09
-
-
-
78.
09
4.1
1 4
.11
6.Pl
ant &
Equ
ipm
ents
489
.44
1.1
8 -
-
4
90.6
2 2
59.7
1 -
-
2
5.27
2
84.9
8 2
05.6
4 2
29.7
3
7.Fu
rnitu
re &
Fix
ture
s 1
12.6
5 1
.52
-
-
114
.17
72.
57
-
-
7.2
8 7
9.85
3
4.32
4
0.08
8.M
otor
Veh
icle
s 1
.01
0.0
4 -
-
1
.05
0.8
0 -
-
0
.08
0.8
8 0
.17
0.2
1
9.O
ffice
Equ
ipm
ents
31.
17
0.4
2 -
-
3
1.59
1
9.89
-
(
0.46
) 2
.93
22.
36
9.2
3 1
1.28
10.
Com
pute
r H
ardw
are
16.
59
3.6
1 -
-
2
0.20
7
.77
-
-
3.0
0 1
0.77
9
.43
8.8
2
11.
Elec
tric
al In
stal
latio
n 7
87.5
0 1
35.3
7 -
-
9
22.8
7 3
25.4
0 -
0
.46
65.
89
391
.75
531
.12
462
.10
12.
Mis
c. A
rtic
les
incl
udin
g Li
brar
y 6
.22
-
-
-
6.2
2 5
.94
-
-
-
5.9
4 0
.28
0.2
8
TOTA
L 6
,193
.84
144
.59
-
186
.53
6,5
24.9
6 1
,999
.35
-
69.
21
245
.86
2,3
14.4
2 4
,210
.54
4,1
94.4
9
92
MECON
NOTE 3.3 - PROPERTY, PLANT & EQUIPMENT, ETC.
A) LAND
(i) UnderSection7ofPublicSectorIron&SteelCompanies(Restructuring)andMiscellaneousProvisionsAct, 1978, landmeasuring 118.95 acres for residential colony acquiredby theGovernmentof India fortheerstwhileHindustanSteelLimited(HSL)wastransferredinfavourofMECONLimitedbytheGazetteNotificationdated30.4.1978.Deedofconveyanceforlandmeasuring118.53acreshasbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimitedon1stAugust,2016.Balancelandmeasuring0.42acreshasbeenreleasedandhandedovertoGovernmentofJharkhandforroadpurpose.Outofthelandmeasuring118.53acresexecutedinfavourofMECONLimited,21.06acreshavebeenallottedtoSteelAuthorityofIndiaLimited(SAIL),Research&DevelopmentCentreforIron&Steel(RDCIS),Ranchiin1980-81forwhichtransferdeedisstillpending.Theamountreceived/receivableforsuchtransferhasbeentakenintheaccounts.
(ii) UnderSection7ofPublicSectorIron&SteelCompanies(Restructuring)andMiscellaneousProvisionsAct, 1978, landmeasuring 10.25 acres for the administrative building acquired by theGovernment ofIndiafortheerstwhileHindustanSteelLimited(HSL)wastransferredinfavourofMECONLimitedbytheGazetteNotificationdated30.4.1978.DeedofconveyanceinthisrespecthasnotyetbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimited.GovernmentofJharkhandhasbeenapproachedfordeedofconveyanceinfavourofMECONLimitedandthematterisinprogress.
(iii) DeedofconveyancehasbeenexecutedinfavourofMECONLimitedbyGovernmentofJharkhandon1stAugust,2016forlandmeasuring103.33acresfortownshipatRanchiacquiredfromGovt.ofBiharbytheCompanyin1978-79.Outofthelandmeasuring103.33acres,transferdeedinfavourofSteelAuthorityofIndiaLimited(SAIL),Research&DevelopmentCentreforIron&Steel(RDCIS),Ranchifor7.43acresof landandinfavourofSteelAuthorityofIndiaLimited(SAIL),ManagementTrainingInstitute(MTI),Ranchifor5.42acresoflandispending.Theamountreceived/receivableforsuchtransferhasbeentakenintheaccounts.DeedofconveyancehasbeenexecutedinfavourofMECONLimitedbyGovernmentofJharkhandon1stAugust,2016for landmeasuring1.50acresof landfortownshipatRanchiwhichwasacquiredfromGovt.ofBiharbytheCompanyin1983-84.
(iv) Outof223.36acresoflandinpossessionoftheCompanyintownshipatRanchi,0.856acresoflandisunderunauthorisedoccupation.
B) BUILDINGS
(i) OfficeSpace/BuildingatSCOPEMinar,LaxmiNagar,NewDelhi,GrossBlock₹1,193.30lakhs(PreviousYear ₹1,193.30 lakhs) have been acquired from SCOPE on self financing / contribution basis withoutownershiptitledeed,thecostofacquisitionofOfficeSpace/BuildinghasbeenconsideredasBuildinganddepreciationthereonhasbeenprovidedattherateasapplicableforBuilding.
(ii) ResidentialbuildingsatRourkela,Grossblock₹5.12 lakhs (Previousyear₹5.12 lakhs)andatDurgapur,Grossblock₹8.62lakhs(Previousyear₹8.62lakhs)havebeenconstructedonthelandbelongingtoSAILforwhichthedepreciationisbeingchargedattherateapplicableforResidentialBuilding.
(iii) PendingdeterminationoftheproportionatevalueofthelandinrespectofBuildingsacquiredatNewDelhi,Gaziabad,NaviMumbai,Bangalore(AustinTown&RajivNagar)andKolkatathecostofacquisitionofflatshasbeenconsideredasBuildinganddepreciationthereonhasbeenprovidedattherateasapplicableforResidentialBuilding.
C) Assetspurchasedduringtheyearcostingabove₹1,000/-eachandupto₹5,000/-eacharefullydepreciatedintheyearofacquisition(ReferNote2Sl.No.2.4.2)w.e.f.1993-94.
93
MECON
MECON Limited
NOTE 4 - CAPITAL WORK-IN-PROGRESS
(₹ in lakhs)
Sl. No.
Particulars
Opening Balance
as on 01.04.18
Additions/ Adjustments
TotalCapitalised/ Adjustments
Balance
As on 31.03.19
As on 31.03.18
As on 01.04.17
1. Installation of Modular Furniture / Biometric Attendance System at Head Office at Ranchi, Jharkhand.
12.22 (12.22) - - — 12.22 65.51
2. Energy Meter / Walking Track / Electronic Door Detector at Township, Ranchi, Jharkhand
- 97.79 97.79 - 97.79 - -
TOTAL 12.22 85.57 97.79 — 97.79 12.22 65.51
94
MECON
NO
TE
5.1
- O
TH
ER
INT
AN
GIB
LE A
SS
ET
S
As
on
31st
Mar
ch, 2
019
(₹
in la
khs)
Sl.
No.
Part
icul
ars
COST
AM
OR
TISA
TIO
N
NET
CAR
RYI
NG
AM
OU
NT
As o
n 01
.04.
18
Addi
tion/
Ad
just
men
t Sa
le/
Adju
stm
ent
Inte
r-H
ead
Adju
st-
men
t
As o
n 31
.03.
19
As o
n 01
.04.
18
On
Sale
/ Ad
just
men
t
Inte
r-H
ead
Adju
st-
men
t
Dur
ing
the
perio
d U
pto
31.0
3.19
As o
n 31
.03.
19
As o
n 31
.03.
18
1.Co
mpu
ter
Softw
are
(Gen
eral
) 1
,445
.77
50.
81
-
-
1,4
96.5
8 1
,231
.51
-
-
105
.00
1,3
36.5
1 1
60.0
7 2
14.2
6
2.Co
mpu
ter
Softw
are
(Soc
ial A
men
ities
) 1
3.23
-
-
-
1
3.23
6
.19
-
-
2.5
4 8
.73
4.5
0 7
.04
TOTA
L 1
,459
.00
50.
81
——
1,5
09.8
1 1
,237
.70
——
107
.54
1,3
45.2
4 1
64.5
7 2
21.3
0
As
on
31st
Mar
ch, 2
018
(₹
in la
khs)
Sl.
No.
Part
icul
ars
COST
AM
OR
TISA
TIO
N
NET
CAR
RYI
NG
AM
OU
NT
As o
n 01
.04.
17
Addi
tion/
Ad
just
men
t Sa
le/
Adju
stm
ent
Inte
r-H
ead
Adju
st-
men
t
As o
n 31
.03.
18
As o
n 01
.04.
17
On
Sale
/ Ad
just
men
t
Inte
r-H
ead
Adju
st-
men
t
Dur
ing
the
perio
d U
pto
31.0
3.18
As
on
31.0
3.18
As
on
31.0
3.17
1.Co
mpu
ter
Softw
are
(Gen
eral
) 1
,369
.17
76.
60
-
-
1,4
45.7
7 1
,123
.97
-
-
107
.54
1,2
31.5
1 2
14.2
6 2
45.2
0
2.Co
mpu
ter
Softw
are
(Soc
ial A
men
ities
) 1
3.23
-
-
-
1
3.23
3
.64
(0.
01)
-
2.5
4 6
.19
7.0
4 9
.59
TOTA
L 1
,382
.40
76.
60
-
-
1,4
59.0
0 1
,127
.61
(0.0
1) -
1
10.0
8 1
,237
.70
221
.30
254
.79
95
MECON
MECON Limited
NOTE 6 - INVESTMENTS (NON-CURRENT)
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Trade Investment - at Cost (Unquoted)
i) Investment in Equity Instruments
1) Joint Venture
5000 Equity Shares of Naira 10 each fully paid up being 50% of paid up share capital of M/s Metallurgical & Engineering Consultants (Nigeria) Limited, a Company set up in Nigeria jointly by this Company with two Nigerian Government Companies and Nigerian Citizens
7.60 7.60 7.60
Less : Provision for impairment in the value of investment 7.60 - 7.60 - 7.60 -
2) Others
50,00,000 Equity Shares of `10/- each fully paid up of “Neelachal Ispat Nigam Limited”.
500.00 500.00 500.00
Less : Provision for impairment in the value of investment 500.00 - 500.00 - - 500.00
(b) Other Investment - at Cost (Unquoted)
Investment in Equity Instruments
1) Others
106,383 Equity Shares of ̀ 10/- each fully paid-up of “Global Procurement Consultants Limited”.
11.92 11.92 11.92
(Out of the above, 6,383 Equity Shares of `10/- each fully paid-up acquired at a premium of `20/- per share subsequently.)
TOTAL 11.92 11.92 511.92
a) Aggregate amount of Quoted Investments NIL NIL NIL
b) Aggregate amount of Unquoted Investments 519.52 519.52 519.52
c) Aggregate provision for impairment of in the value of investment 507.60 507.60 7.60
NOTE 7 - TRADE RECEIVABLES (NON-CURRENT)
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
a) Considered Good - Secured — – –
b) Considered Good - Unsecured 15,099.77 11,926.14 9,927.93
c) Significant increase in Credit Risk 230.68 139.35 129.44
d) Credit Impaired 6,780.22 4,255.61 4,021.21
22,110.67 16,321.10 14,078.58
Less : Provision for Bad and Doubtful Trade Receivables / Expected Credit Loss
7,010.90 4,394.96 4,150.65
TOTAL 15,099.77 11,926.14 9,927.93
96
MECON
NOTE 8 - LOANS (NON-CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Security Deposits
(i) Government Authorities $ 5.46 5.45 5.44
(ii) Others
Considered Good - Secured - - -
Considered Good - Unsecured 201.83 201.42 316.79
Significant increase in Credit Risk - - -
Credit Impaired 216.30 186.33 113.24
418.13 387.75 430.03
Less : Provision for doubtful deposits 216.30 201.83 186.33 201.42 113.24 316.79
(b) Loans to Related Parties - - -
(c) Others
(i) Advance to Employees $ 1.63 6.97 7.57
(ii) Interest Receivable on Advance to Employees $
9.83 13.06 14.50
(iii) Claims Recoverable
Considered Good - Secured - - -
Considered Good - Unsecured 10.06 5.41 3.01
Significant increase in Credit Risk - - -
Credit Impaired 260.31 116.34 116.34
270.37 121.75 119.35
Less : Provision for Claims Recoverable 260.31 10.06 116.34 5.41 116.34 3.01
TOTAL 228.81 232.31 347.31
$ Considered good - Unsecured
NOTE 9 - OTHER FINANCIAL ASSETS (NON-CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Bank Balances - 7,300.00 1.00
Fixed deposits with more than 3 months maturity which are due for maturity beyond 12 months from balance sheet date
(b) Interest accrued but not due - 5.92 0.02
TOTAL - 7,305.92 1.02
97
MECON
MECON Limited
NOTE 10 - DEFERRED TAX ASSETS (NET)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Deferred Tax Assets
(i) Provision for bad & doubtful debts 2,369.28 1,470.77 1,380.37
(ii) Provision for Gratuity 1,674.89 1,404.75 8.31
(iii) Provision for ECL 318.86 244.83 -
(iv) Provision for LD Recovered 58.59 131.02 128.27
(v) Provision for Claims Recoverable 98.16 47.86 47.40
(vi) Provision for Doubtful Advances to Suppliers 126.42 126.42 125.21
(vii) Provision for Doubtful Deposit with Others 57.75 55.82 29.98
(viii) Provision for EMD/SD 1,629.78 1,621.23 252.02
(ix) Provision for Misc. Deductions 943.85 1,044.26 1,081.75
(x) Provision for Disputed Cases 99.63 99.63 98.67
(xi) Provision for Service Tax Receivable 557.99 318.79 208.42
(xii) Provision for Stagnant Jobs 743.40 1,525.02 2,220.30
(xiii) Provision for Output VAT Receivable 155.49 154.13 145.67
(xiv) Provision for Doubtful GST Receivable 6.60 - -
(xv) Prov. for Doubtful STDS Certificate Recv. 5.79 5.79 5.73
(xvi) Provision for Bonus 3.96 3.73 3.66
(xvii) Prov. for dimunition in the value of Investment
174.72 174.72 -
(xviii) Provision for expenses on R&D - 9,025.16 - 8,428.77 138.43 5,874.19
(b) Deferred Tax Liability
(i) Diff. between book and tax depreciation 635.27 668.75 703.27
(ii) Sales Tax Paid 149.77 785.04 141.00 809.75 139.65 842.92
NET DEFERRED TAX ASSET / (LIABILITY) (a) - (b) 8,240.12 7,619.02 5,031.27
98
MECON
NOTE 11 - OTHER NON-CURRENT ASSETS
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Capital Advances - - -
(b) Advances other than Capital Advances
(i) Security Deposits - - -
(ii) Advances to related parties - - -
(iii) Other Advances
- Advance to Suppliers and Sub-Contractors
Considered Good - Secured # 1,695.63 762.34 763.38
Considered Good - Unsecured - - -
Considered Doubtful 361.73 361.73 361.73
2,057.36 1,124.07 1,125.11
Less : Provision for doubtful advance to Suppliers and Sub-Contractors 361.73 1,695.63 361.73 762.34 361.73 763.38
- Advance to Others $ 106.08 104.69 105.60
- Prepaid Expenses $ 1.55 1.59 0.34
- Advances to Board of Trustees, MECON Employees Gratuity Fund $
— – 138.97
- Payment against Sales Tax / VAT $ 10.00 10.00 10.00
(c) Others
- Liquidated Damages Recovered by Clients
Considered Good - Unsecured 235.16 - -
Considered Doubtful 161.18 253.96 249.67
396.34 253.96 249.67
Less : Provision for doubtful liquidated damages recovered 161.18 235.16 253.96 - 249.67 -
- EMD, SD, PBG and Advance Amount in dispute
Considered Good - Unsecured - - -
Considered Doubtful 4,612.06 4,612.06 700.76
4,612.06 4,612.06 700.76
Less : Provision for doubtful EMD, SD, PBG and Advance Amount in dispute 4,612.06 - 4,612.06 - 700.76 -
TOTAL 2,048.42 878.62 1,018.29
$ considered good - Unsecured
# Secured against bank guarantee / materials supplied / work done, as the case may be
99
MECON
MECON Limited
NOTE 12 - INVENTORIES (₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Stores and Spares 89.00 104.84 98.47
(b) Printing and Stationery 33.49 27.41 34.82
(c) Computer Consumables 23.42 16.22 19.92
Valued as per Accounting Policy (NOTE 2, Sl.No.6)
TOTAL 145.91 148.47 153.21
NOTE 13 - TRADE RECEIVABLES (CURRENT) (₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
a) Considered Good - Secured - - -
b) Considered Good - Unsecured 29,486.34 26,671.75 17,862.72
c) Significant increase in Credit Risk 681.80 559.61 400.29
d) Credit Impaired - - -
30,168.14 27,231.36 18,263.01
Less : Provision for Bad and Doubtful Trade Receivables / Expected Credit Loss
681.80 559.61 400.29
TOTAL 29,486.34 26,671.75 17,862.72
NOTE 14 - CASH AND CASH EQUIVALENTS
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
i) Cash at Bank (Current & Flexi Deposit A/cs) 724.61 2,882.19 216.21 ii) Cheques & Drafts on hand — - -iii) Cash & Stamps on hand 5.56 8.82 16.89
TOTAL 730.17 2,891.01 233.10
NOTE 15 - OTHER BANK BALANCES
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Fixed Deposits with more than 3 months maturity which are due for maturity within 12 months from balance sheet date
52,210.59 47,351.00 54,810.00
(b) Interest accrued but not due on Fixed Deposits 1,201.53 734.67 1,172.94
TOTAL 53,412.12 48,085.67 55,982.94
¾ Other Bank Balances include amounts earmarked / available for specified purposes as under :
i) CSR and SD Expenditure 527.11 456.07 498.39
ii) Research & Development Expenditure 162.58 135.46 135.46
iii) Corporate Sports Expenditure 60.00 - -
¾ Other Bank Balances include amounts held as margin money & security under lien against borrowings, etc.
9,201.00 12,051.00 7,250.00
¾ Other Bank Balances include Deposits with more than 12 months maturity
— — 6,500.00
100
MECON
NOTE 16 - LOANS (CURRENT) (₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Security Deposits
Deposit with Others
Considered Good - Secured - - -
Considered Good - Unsecured 146.75 188.31 174.05
Significant increase in Credit Risk
- - -
Credit Impaired 0.84 0.84 0.84
147.59 189.15 174.89
Less : Provision for Doubtful Deposit with Others 0.84 146.75 0.84 188.31 0.84 174.05
(b) Loans to Related Parties - - -
(c) Others
(i) Advance to Employees
Considered Good - Secured ## 0.02 0.02 0.02
Considered Good - Unsecured 273.09 315.07 234.04
Significant increase in Credit Risk - - -
Credit Impaired - 273.11 - 315.09 - 234.06
(ii) Interest Receivable on Advance to Employees ##
2.30 1.07 2.51
(iii) Claims Recoverable
Considered Good - Secured - - -
Considered Good - Unsecured 335.93 249.21 156.34
Significant increase in Credit Risk - - -
Credit Impaired 20.61 20.61 20.61
356.54 269.82 176.95
Less : Provision for Doubtful Claims Recoverable 20.61 335.93 20.61 249.21 20.61 156.34
TOTAL 758.09 753.68 566.96
## Secured against buildings and vehicles
101
MECON
MECON Limited
NOTE 17 - OTHER FINANCIAL ASSETS (CURRENT)
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Jobs-in-Progress for Consultancy Services
10,001.27 707.90 629.50
Valued as per Accounting Policy (NOTE 2, Sl.No.9)
Less : Provision for Stagnant Jobs-in-Progress 2,127.40 7,873.87 13.71 694.19 13.71 615.79
(b) Other Receivables 279.49 642.07 848.07
TOTAL 8,153.36 1,336.26 1,463.86
NOTE 18 - CURRENT TAX ASSETS (NET)
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
Payment against Income Taxes (Net) 9,706.90 7,727.66 8,545.51
CURRENT TAX ASSETS / (LIABILITIES) 9,706.90 7,727.66 8,545.51
NOTE 19 - OTHER CURRENT ASSETS
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Advances other than capital advances
(i) Security Deposits - - -
(ii) Advances to related parties - - -
(iii) Other Advances
- Advances to Contractors $ 9.28 14.57 9.12
- Advance to Suppliers and Sub-Contractors
Considered Good - Secured # 792.83 790.54 772.12
Considered Good - Unsecured 69.12 65.35 27.66
Considered Doubtful 0.06 0.06 0.06
862.01 855.95 799.84
Less : Provision for doubtful advance to Suppliers and Sub-Contractors 0.06 861.95 0.06 855.89 0.06 799.78
- Advance to Others & Canteen $ 32.19 161.27 18.80
- Prepaid Expenses $ 49.10 17.56 14.03
$ Considered good - Unsecured
# Secured against bank guarantee / materials supplied / work done, as the case may be
102
MECON
NOTE 19 - OTHER CURRENT ASSETS (Contd.)
(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
- Payment against Sales Tax / VAT (Net) $
1,104.73 1,223.07 1,106.10
- VAT Credit Receivable (INPUT) $ 4.57 4.57 39.47
- OUTPUT VAT Receivable
Considered Good - Unsecured 43.55 43.55 23.40
Considered Doubtful 19.96 19.96 19.96
63.51 63.51 43.36
Less : Provision for Output VAT Receivable 19.96 43.55 19.96 43.55 19.96 23.40
- VAT / CST Receivable
Considered Good - Unsecured - 9.47 93.72
Considered Doubtful 425.01 421.13 400.94
425.01 430.60 494.66
Less : Provision for VAT Receivable 425.01 - 421.13 9.47 400.94 93.72
- Service Tax Receivable
Considered Good - Unsecured 126.94 1,094.54 2,869.89
Considered Doubtful 1,596.80 912.29 602.22
1,723.74 2,006.83 3,472.11
Less : Provision for Service Tax Receivable 1,596.80 126.94 912.29 1,094.54 602.22 2,869.89
- GST Receivable
Considered Good - Unsecured 6,037.06 4,208.81 - - -
Considered Doubtful 18.90 - -
6,055.96 4,208.81 -
Less : Provision for GST Receivable 18.90 6,037.06 - 4,208.81 - -
(b) Others
- Liquidated Damages Recovered by Clients
Considered Good - Unsecured - - -
Considered Doubtful 6.49 121.00 121.00
6.49 121.00 121.00
Less : Provision for doubtful liquidated damages recovered
6.49 - 121.00 - 121.00 -
TOTAL 8,269.37 7,633.30 4,974.31
$ Considered good - Unsecured
103
MECON
MECON Limited
NOTE 20 : EQUITY SHARE CAPITAL
(₹ in lakhs)
AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
AUTHORISED#
Equity Shares
4,10,00,000 (Previous year 4,10,00,000) Equity Shares of ` 10/- each
4,100.00 4,100.00 4,100.00
4,100.00 4,100.00 4,100.00
ISSUED, SUBSCRIBED AND FULLY PAID UP
Equity Shares
4,01,38,360 ( Previous year 4,01,38,360) Equity Shares of ` 10/- each with voting rights.
4,013.84 4,013.84 4,013.84
a) 4,01,38,120 equity shares are held as fully paid-up by the President of India.
b) 120 equity shares are held as fully paid-up by the Govt. Director of the company.
c) 120 equity shares are held as fully paid-up by the Chairman and Managing Director of the company.
Out of the total shares,
¾ 20,14,800 equity shares are allotted as fully paid-up for consideration other than cash, pursuant to the Government of India, Ministry of Steel & Mines letter No. 6(100)/78-SAIL(1) dated 15th May, 1979 as consideration for net book value of immovable assets of M/s Hindustan Steel Limited at Ranchi transferred to the Company.
¾ 4,03,060 equity shares are allotted as fully paid-up Bonus Shares during 1996-97
¾ 77,20,000 equity shares are allotted as fully paid-up against conversion of Govt. of India Loan and Interest on Loan vide Government of India, Ministry of Steel Order No.4(46)/2004-HSM dated 30th March,2007
TOTAL : 4,013.84 4,013.84 4,013.84
#TheAuthorised ShareCapital of theCompany is ₹104,00,00,000/- (PreviousYear ₹104,00,00,000/-) dividedinto4,10,00,000(PreviousYear4,10,00,000)EquitySharesof₹10/- (PreviousYear₹10/-)eachand6,30,00,000(Previousyear6,30,00,000)5%Non-CumulativeRedeemablePreferenceSharesof ₹10/- (PreviousYear₹10/-)each.AuthorisedShareCapitalof5%Non-CumulativeRedeemablePreferenceSharesisnotconsideredaboveinaccordancewiththerequirementofIndAS.
RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDINGAS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
Equity Shares
Number of Shares Outstanding at the beginning 40,138,360 40,138,360 40,138,360
Number of Shares Issued during the period - - -
Number of Shares Bought Back during the period - - -
Number of Shares Outstanding at the end 40,138,360 40,138,360 40,138,360
104
MECON
NOTE 21 : OTHER EQUITY(₹ in lakhs)
AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
A. RESERVES AND SURPLUS
Capital Redemption Reserve $
As per last Balance Sheet 6,300.00 6,300.00 6,300.00
CSR Activity Reserve $$
As per last Balance Sheet - 15.25 15.25
Add : Transferred from Surplus 87.96 - -
Less : Transferred to Surplus 16.92 71.04 15.25 - - 15.25
General Reserve $$$
As per last Balance Sheet 9,852.39 9,852.39 9,852.39
Add : Transferred from Surplus - 9,852.39 - 9,852.39 - 9,852.39
Retained Earnings $$$$
As per last Balance Sheet 2,660.70 (3,156.88) 4,110.44
Add/ (Less):
Adjustment due to Ind AS Implementation
13,485.57 - (108.79)
Add : Net Profit / (Loss) from Statement of Profit and Loss
1,374.01 5,802.33 (7,376.11)
Add : Transferred from CSR Activity Reserve
16.92 15.25 -
Amount available for appropriation 17,537.20 2,660.70 (3,156.88)
Less : Transferred to CSR Activity Reserve 87.96 - -
Less : Dividend on Equity Shares 1,027.19 - -
Less : Dividend Distribution Tax 211.14 - -
Less : Transferred to General Reserve - 16,210.91 - 2,660.70 - (3,156.88)
B. OTHER COMPREHENSIVE INCOME #
As per last Balance Sheet (2,242.86) (2,376.74) (2,376.74)
Add : Other Comprehensive Income from Statement of Profit and Loss (159.37) (2,402.23) 133.88 (2,242.86) - (2,376.74)
TOTAL 30,032.11 16,570.23 10,634.02
$ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act.
$$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc.
$$$ As per provisions of the Companies Act, the General Reserve is created out of the accumulated profits of the Company.
$$$$ Retained Earnings represent the amount of accumulated earnings of the Company after considering Dividend including Dividend Distribution Tax paid during the year, net adjustment due to CSR Activity, net cumulative impact of transition to adoption of Ind AS 115 and the profits made by the Company during the year.
# As per provisions of the Companies Act, Other Comprehensive Income represents balance arising on account of gains / losses booked on Re-measurement of Net Defined Benefit Plans.
105
MECON
MECON Limited
NOTE 22 - TRADE PAYABLES (NON-CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
Trade Payables
i) Dues to Micro & Small Enterprises (Refer Note 40.23)
1,279.31 1,256.40 1,032.15
ii) Others 5,828.73 6,249.79 6,202.25
TOTAL 7,108.04 7,506.19 7,234.40
NOTE 23 - OTHER FINANCIAL LIABILITIES (NON-CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Other Payables
(i) Sundry Creditors 172.01 172.01 568.61
(ii) Securities and Other Deposits 361.37 352.08 324.38
(iii) Deposit under Employees Family Benefit Scheme
297.31 336.39 358.70
(iv) Liability for Employees 97.76 22.85 3,713.23
TOTAL 928.45 883.33 4,964.92
NOTE 24 - PROVISIONS (NON-CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Provision for Employee Benefits
(i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation) 3,703.31 4,009.01 152.21
(ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation) 11,472.26 10,162.47 9,806.72
(iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation) 6,631.11 6,234.93 5,802.91
(iv) Provision for Employee Defined Contribution Schemes
15,912.60
14,422.25 14,216.78
37,719.28 34,828.66 29,978.62
(b) Other Provisions
(i) Provision for Miscellaneous Deduction by Clients 2,636.70 2,936.39 3,090.42
(ii) Provision for Disputed Cases 285.12 285.12 285.12
TOTAL 40,641.10 38,050.17 33,354.16
106
MECON
NOTE 25 - OTHER NON-CURRENT LIABILITIES(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(i) Advances from Clients 1,887.11 3,779.09 3,919.97
(ii) Liquidated Damages Recovered from Parties 468.92 461.91 446.92
TOTAL 2,356.03 4,241.00 4,366.89
NOTE 26 - TRADE PAYABLES (CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
Trade Payables
(i) Dues to Micro & Small Enterprises (Refer Note 40.23)
2,549.04 2,762.35 1,479.42
(ii) Others 8,998.05 9,761.56 11,298.34
TOTAL 11,547.09 12,523.91 12,777.76
NOTE 27 - OTHER FINANCIAL LIABILITIES (CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Current Maturity of Non-Current Borrowings - - -
(b) Interest accrued but not due on borrowings - - -
(c) Interest accrued and due on borrowings - - -
(d) Other Payables
(i) Sundry Creditors 3,254.35 3,378.07 2,002.88
(ii) Securities and other deposits 453.99 421.60 396.14
(iii) Deposit under Employees Family Benefit Scheme
46.67 71.65 44.85
(iv) Liability for Employees 4,070.04 3,754.52 3,368.98
(v) Invoice raised but not accrued (Net) 19,640.19 7,297.40 2,356.30
TOTAL 27,465.24 14,923.24 8,169.15
NOTE 28 - OTHER CURRENT LIABILITIES(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(i) Advances from Clients 7,336.82 8,268.01 9,920.12
(ii) Deposit from Clients (Deposit Works) 1,405.94 2,245.89 -
(iii) Liquidated Damages Recovered from Parties 80.24 80.23 79.17
(iv) VAT / Central Sales Tax Liability 123.76 116.44 187.32
(v) Service Tax Liability 0.41 1.11 48.34
(vi) GST Payable 1,611.04 2,071.89 -
(vii) Dividend including Dividend Tax Payable - - -
(viii) Others (including CSR / SD / R&D Fund) 704.50 660.89 658.72
TOTAL 11,262.71 13,444.46 10,893.67
107
MECON
MECON Limited
NOTE 29 - PROVISIONS (CURRENT)(₹ in lakhs)
Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017
(a) Provision for Employee Benefits
(i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation)
1,089.77 10.98 10.75
(ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation)
912.18 1,817.53 1,901.05
(iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation)
258.09
2,260.04
219.49
2,048.00
194.13
2,105.93
(b) Other Provisions
(i) Provision for Bonus 11.34 10.69 10.57
(ii) Provision for Expenses & Contractual Obligations
5,815.14 16,580.66 16,296.50
(iii) Provision for Miscellaneous Deductions by Clients
64.33 51.97 35.29
TOTAL 8,150.85 18,691.32 18,448.29
NOTE 30 - REVENUE FROM OPERATIONS(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Revenue from Consultancy Services 37,612.12 35,213.36
(b) Revenue from Construction Contracts 9,405.12 9,359.26
(c) Other Operating Revenue
(i) Provision no longer required written back (Direct) 869.17 2,878.04
(ii) Others 33.95 586.42
TOTAL 47,920.36 48,037.08
NOTE 30.1 - GROSS INCOME DERIVED FROM SERVICES RENDERED[Refer Note 30(a) and Note 30(b)]
(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Engineering, Technical Consultancy, Project Management Services, etc. - Domestic 37,149.74 35,184.37
(b) Engineering, Technical Consultancy, Project Management Services, etc. - Foreign 462.38 28.99
(c) Execution of Construction Contracts/EPC Contracts including Supply of Equipment & Components, etc.
9,405.12 9,359.26
TOTAL 47,017.24 44,572.62
108
MECON
NOTE 31 - OTHER INCOME(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Interest Income
(i) Interest from Bank (Tax deducted at Source ` 231.52 lakhs) (CPLY ` 239.17 lakhs) 3,770.76 3,563.38
(ii) Interest on Advances to Employees for Conveyance and House Building 0.06 0.07
(iii) Interest from Income Tax Department and Others - 309.29
(b) Dividend Income from Non-Current Investment 1.60 1.60
(c) Other Non-Operating Income
(i) Profit on Sale / Disposal of Fixed Assets 5.16 0.69
(ii) Income from Township 1,154.48 1,297.33
(iii) Provision no longer required written back 2.37 5,511.99
(iv) Miscellaneous Income 185.26 240.60
TOTAL 5,119.69 10,924.95
NOTE 32 - PURCHASE OF EQUIPMENTS & DIRECT EXPENSES(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Purchase of Equipments & Components for execution of jobs 2,985.37 4,719.64
(b) Expenses on Sub-Contractors & Others for execution of jobs 5,880.77 4,833.24
(c) Provision for Expenses & Contractual Obligations for execution of jobs 204.22 4,215.46
TOTAL (a)+(b)+(c) 9,070.36 13,768.34
NOTE 33 - (ACCRETION) / DECRETION TO JOBS-IN-PROGRESS(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Opening Jobs-in-Progress (Consultancy) 11,993.55 629.50
(b) Closing Jobs-in-Progress (Consultancy) 10,001.27 707.90
(a)-(b) 1,992.28 (78.40)
109
MECON
MECON Limited
NOTE 34 - EMPLOYEE BENEFITS EXPENSES(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Salaries & Wages
- Salary and Allowances 18,530.26 17,704.58
- Leave Encashment 1,685.23 1,575.14
- Perks and Allowances 3,231.11 3,266.57
- Bonus 3.21 7.85
- Superannuation Benefits 1,795.46 1,798.33
Sub-Total 25,245.27 24,352.47
(b) Company’s Contribution to Provident and Other Fund 2,664.80 6,154.45
(c) Staff Welfare Expenses
- Education 3.90 4.77
- Medical 541.12 547.87
- Social & Cultural Activities 59.74 57.66
- Rent (Residential) 0.14 1.53
- Group Insurance Premium 10.77 16.70
- Staff Welfare (Others) 296.71 252.33
Sub-Total 912.38 880.86
TOTAL (a)+(b)+(c) 28,822.45 31,387.78
NOTE 35 - FINANCE COSTS(₹ in lakhs)
Particulars 2018-19 2017-18
(a) Interest
Interest on Loan from Banks 71.60 32.00
Sub-Total (a) 71.60 32.00
(b) Other Borrowing Costs
i) Bank Charges 17.38 39.13
ii) Bank Guarantee Commission 53.13 94.78
Sub-Total (b) 70.51 133.91
TOTAL (a) + (b) 142.11 165.91
NOTE 36 - DEPRECIATION AND AMORTISATION EXPENSES(₹ in lakhs)
Particulars 2018-19 2017-18
a) Depreciation 658.79 825.38
b) Amortisation 107.54 110.08
TOTAL (a) + (b) 766.33 935.46
110
MECON
NOTE 37 - OTHER EXPENSES(₹ in lakhs)
Particulars 2018-19 2017-18
1. Travelling Expenses 1,631.63 1,592.66
2. Foreign Deputation 183.02 336.93
3. Maintenance & Repairs to Buildings 1,127.59 1,450.32
4. Repairs (Others) 39.09 64.66
5. Stores & Spares consumed 69.91 163.76
6. Printing & Stationery consumed 95.79 99.41
7. Expenses on Computer Consumables 38.50 21.79
8. Rent (Non-residential) 416.35 362.79
9. Rates & Taxes 103.54 114.02
10. Advertisement & Publicity 130.94 90.95
11. Advertisement (Reimbursible) - 111.60
12. Payment to Auditors :
- As Statutory Auditor 3.00 3.00
- For Income Tax / GST Audit Matters 4.48 0.48
- For Quarterly Audit 1.80 1.80
- For reimbursement of expenses 2.90 12.18 2.60 7.88
13. Insurance 7.35 4.23
14. Training Expenses :
- Inland 59.14 63.80
- Foreign - 59.14 - 63.80
15. Postage,Telephones & Telegraphs 114.06 133.26
16. Computer Services 174.59 96.79
17. Power and Fuel 581.65 535.09
18. Legal & Professional Charges 175.33 93.31
19. Assets Charged to Revenue 0.93 0.44
20. Other Administrative and Misc. Expenses 1,099.17 924.68
21. Fees Withdrawn - 18.22
22. Expenses on CSR and Sustainable Development 16.92 13.56
23. Expenses on Research & Development 29.00 -
24. Expenses on Corporate Sports Fund 60.00 -
25. Loss on Sale / Disposal of Fixed Assets 0.17 2.02
26. Provisions
- Provision for Doubtful Trade Receivables / ECL 2,644.03 651.96
- Provision for Impairment in the value of Investments - 500.00
- Provision for Claims Recoverable 143.97 -
- Provision for Doubtful Deposit with Others 5.54 73.10
- Provision for Earnest Money Deposit 24.43 -
- Provision for Stagnant Jobs-in-Progress 1,114.31 -
- Provision for Stagnant Jobs - 430.39
- Provision for LD Recovered by Clients 10.78 4.66
- Provision for Service Tax Receivable 747.64 285.51
- Provision for VAT / Cess Receivable 41.70 54.70
- Provision for GST Receivable 18.90 -
- Provision for Doubtful ITDS Credit - 6.68
- Provision for Misc. Deduction by Clients 330.93 71.94
TOTAL 11,249.08 8,381.11
111
MECON
MECON Limited
NOTE 38: CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)
(₹inlakhs)
Particulars 31.03.2019 31.03.2018
38.1 Contingent Liabilities
i) Claims against Company under liquidated damage clause bytheClients.
NIL NIL
ii) Incometaxindispute/underappeal 781.60 781.60
iii) SalestaxdemandspendingappealswithAppellateAuthorities. 2,197.85 2,166.68
iv) Excise Duty / Service Tax demands pending appeals withAppellateAuthorities.
230.65 NIL
v) Claims against Company by Contractors / Suppliers, etc.pendingfinaldecision.
9,990.61 7,590.64
vi) Claims against Company for electricity supply by JharkhandUrjaVikasNigamLimited(JUVNL)indispute₹2,486.07lakhs.Outofthis,₹527.14lakhsispaid/providedinaccountspendingfinaldecisionduringtheFY2015-16.
1,958.93 1,958.93
vii) The Regional Provident Fund Commissioner-II, Jharkhand,Ranchiorderedforpaymentof₹385.27lakhsbywayofinterestandpenaltytotheBOT,arisingoutofdelayedremittancesbythe company to theBOT,MECONEmployeesPFTrust.Thecompany disputed the same and filed an appeal with EPF,AppellateTribunal,NewDelhiafterdepositing₹96.32lakhsasinterimadhocadvance.
TheHon’bleHighCourt of Jharkhand, vide order dated 30th July,2012hasdirectedProvidentFundCommissioner,Ranchitodecidethequestionofdelayinpaymentanddeterminethequantumofdamageswithaviewtore-assesstheliabilityoftheCompany, setting aside all earlier orders.
RPFChasworkedoutliabilityof₹326.02lakhsvidetheirletterdated 28.08.2013. Provision of ₹3.11 lakhs has been madeduring 2013-14 based on Company’s calculation pendingfinaldecision.Outoftheabove,theRegionalProvidentFundCommissioner-I, Jharkhand, Ranchi vide their letter dated17.03.2015, demanded ₹116.86 lakhs towards interest andpenalty,arisingoutofdelayedremittancesofPFandPensionamountsfortheperiodfromApril,1971toFebruary,2001.
Writ Petition has been filed before Hon’ble Jharkhand HighCourt against the order dated 14.02.2017 passed by EPF,AppellateTribunal,NewDelhi.
322.91 322.91
viii) Interestonarrearperksandallowancesinrespectofexecutiveemployeesasdeterminedupto31.03.2019followingorderno.O.A.350/00191/2014dated15.02.2016passedby theCentralAdministrative Tribunal, Calcutta Bench, pending finaldecision.
5,238.50 4,684.16
Contd...
112
MECON
Particulars 31.03.2019 31.03.2018
ix) ArrearsPerksandAllowancesinrespectofexecutiveemployeesfortheperiod26.11.2008to20.10.2009asestimatedfollowingthe order no. O.A. 350/00191/2014 dated 15.02.2016 issuedby theCentralAdministrativeTribunal,Calcutta Bench.ThematterisindisputeandispendingbeforetheHon’bleCalcuttaHighCourtasintimatedbytheMinistryofSteel.
3,079.66 3,079.66
38.2 Commitments
Estimated amount of contracts/orders remaining to beexecuted/suppliedoncapitalaccountandnotprovidedfor
205.02 27.77
NOTE 39: PROPOSED DIVIDEND
(₹ in lakhs)
Particulars 2018-19 2017-18Proposeddividendonequityshares
Totaldividend(₹inlakhs)Dividendpershare(₹)
DividenddistributiontaxonProposeddividend
NILNILNIL
1,027.192.56
211.14
NOTE 40: ADDITIONAL INFORMATION AND OTHER DISCLOSURES(₹ in lakhs)
Particulars 2018-19 2017-18 40.1 Letters of Credit opened with Bankers for purchase of
equipment&componentsandtechnicalservices.11.42 94.51
40.2 GuaranteesgivenbyBanksforandonbehalfoftheCompanyto different clients etc.
17,504.36 16,811.08
40.3 EarningsinForeignExchangeFeesforservicesrendered. 462.38 28.99
40.4 ExpenditureinForeignCurrency(i) ProfessionalandConsultationFees(ii) Othermatters
143.27132.26 275.53
212.32197.79 410.11
40.5 ValueofImports(CalculatedonCIFbasis)(i) Equipment, components & spares parts used in
construction contract(ii) Capitalgoods
83.96
NIL 83.96
251.56
NIL 251.5640.6 (i) ExpensesonAdvertisement&Publicity
a) Advertisementb) Publicity
(ii) ExpensesonPublicRelationEstablishment
27.51103.43 130.94
38.90
52.8038.15 90.95
37.02
40.7 ExpensesonEngineering,Research&DevelopmentWing/establishment,includingcapitalassetsa) Salary&Wages,etc.b) ExpensesoutofR&DFund
106.021.88
107.90
71.32NIL
71.32
(₹inlakhs)
113
MECON
MECON Limited
40.8 PARTICULARS OF PROVISIONS
(₹ in lakhs)
PARTICULARSProvi-
sion for Bonus
Provision for Bad & Doubtful
Debts
Provision for Liq-uidated
Damages recovered by Clients
Provision for Claims Recover-
able
Provi-sion for Doubtful Earnest Money Deposit
Provi-sion for Doubtful Deposit
with Others
Provision for doubt-
ful ad-vances to suppliers/ sub-con-tractors
Provision for Miscel-
laneous Deductions by Clients
Provision for Disput-ed Cases, Stagnant
jobs, EMD, SD, etc
Opening Balance as on 01.04.2018
10.69
(10.57)
4,208.92
(3,988.60)
374.96
(370.67)
136.95
(136.95)
27.44
(27.44)
159.73
(86.64)
361.79
(361.79)
2,988.36
(3,125.71)
10,706.05
(8,509.20)
Add: Provision made during the year
6.64
(3.51)
2,870.56
(468.66)
10.78
(4.66)
143.97
(NIL)
24.43
(NIL)
5.54
(73.09)
NIL
(NIL)
330.93
(71.94)
3,149.13
(4,688.57)
Less: Provision utilised during the year
2.56
(3.39)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
56.12
(0.59)
Less: Unused provision reversed during the year
3.43
(NIL)
299.26
(248.34)
218.07
(0.37)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
NIL
(NIL)
618.26
(209.29)
4,622.51
(2,491.13)
Closing Balance as on 31.03.2019
11.34
(10.69)
6,780.22
(4,208.92)
167.67
(374.96)
280.92
(136.95)
51.87
(27.44)
165.27
(159.73)
361.79
(361.79)
2,701.03
(2,988.36)
9,176.55
(10,706.05)
Figures in bracket relates to previous year
40.9 DISCLOSURE UNDER IND AS-17 ON “LEASES”
TheCompanyhastakencertainoffices,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2018-19anamountof₹416.35lakhs(PreviousYear₹362.79lakhs)hasbeenaccountedforasrentalchargesinrespectofthesecancellableleases.
TheCompanyhasgivencertainoffice,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2018-19anamountof₹225.55lakhs(PreviousYear₹201.49lakhs)hasbeenaccountedforasrentalincomeinrespectofthesecancellableleases.
114
MECON
40.10 DISCLOSURE UNDER IND AS -19 ON “EMPLOYEE BENEFITS”
A Defined Benefit Scheme
A.1 General Description of Defined Benefit Schemes:
Gratuity : Payable on separation @ 15 days salary for each completed year ofservice or part thereof in excess of sixmonths to eligible employeeswhorendercontinuousserviceof5yearsormore.Beyond30yearsofservice,gratuityispayableattherateofonemonth’s/30dayssalaryforeachcompletedyearofserviceinexcessof30years.Themaximumlimitofgratuityis₹20.00lakhsw.e.f.29.03.2018.
Leave Encashment : Payable on separation to eligible employees who have accumulatedearnedleaveandhalfpayleave.Maximumlimitofaccumulationis300days(bothearnedleaveandhalfpayleavetakentogether). However,no commutation of HPL would be permissible for the purpose ofencashmentof300days leaveasabove.Employees inservicebecomeentitledtoen-cashaccumulatedearnedleavestandingtohis/hercreditwhentheearnedleavehasaccumulated300days,subjecttomaximumearnedleaveencashmentallowedupto30daysinacalendaryear.
Provident Fund : 12%ofBasicPay&DearnessAllowancecontributedtotheProvidentFundTrustbytheCompany.
Post Retirement Medical Benefits
: Available to the employees and his spouse after separation(Superannuation/death) at Company’s hospitals / under HealthInsurance scheme / a fixed amount of ₹2,400/- p.a. under OutdoorMedicalTreatment(ODMT)scheme,asapplicable.
Post Retirement Settlement Benefits
: Payabletoemployees/spouseonseparation(Superannuation,VoluntaryRetirement,Death,Dischargeonmedicalgroundandresignationaftertheageof57years)forsettlementuptotheirhometown.
Employees’ Family Benefit Scheme
: Monthly payments to disabled separated employees/legal heirs ofdeceasedemployeesinlieuofprescribeddeposittillthenotionaldateofsuperannuation.
Long Service Award : Payableinkindonrendering15yearsofserviceandalsoonrendering30yearsofservice.
Retirement Gift : Payableinkindonretirement.
LTC/LTA : Non-executiveregularemployeesareentitledtooneLTCandoneLTAaccordingtoratesintheeligiblegrade,inablockoffouryears.
115
MECON
MECON Limited
A.2
Rec
onci
liatio
n of
Pre
sent
Val
ue o
f Defi
ned
Ben
efi t
Obl
igat
ion
(DBO
)
(₹ in
lakh
s)
12
34
56
78
Sl.
Part
icul
ars
Grat
uity
Leav
e En
cash
men
t
Post
R
etire
men
t M
edic
al
Bene
fits
Post
R
etire
men
t Se
ttlem
ent
Bene
fits
Empl
oyee
Fa
mily
Ben
efit
Sche
me
Ret
irem
ent
Gift
Long
Ser
vice
Aw
ard
LTC/
LTA
1P.
V. o
f DBO
(Ope
ning
) 9
,127
.84
11,
980.
00
1,9
76.5
3 1
81.3
4 2
22.0
6 2
4.04
2
5.78
7
1.93
P.V.
of D
BO (
Ope
ning
)(Pr
evio
us Y
ear)
5,2
98.8
7 1
1,70
7.77
1
,483
.64
188
.30
246
.33
25.
21
20.
30
80.
52
2Cu
rren
t Ser
vice
Cos
t 2
97.4
2 7
63.1
4 —
7.9
9 —
1.5
5 4
3.44
—
Curr
ent S
ervi
ce C
ost (
Prev
ious
Yea
r) 1
54.4
0 7
89.8
7 -
1
0.79
-
1
.45
2.1
1 -
3In
tere
st C
ost
693
.71
910
.48
150
.22
13.
78
16.
88
1.8
3 1
.96
5.4
7
Inte
rest
Cos
t (Pr
evio
us Y
ear)
365
.69
785
.27
104
.90
13.
08
16.
67
1.7
5 1
.44
6.8
1
4Ac
tuar
ial L
oss/
(Gai
n) 1
85.6
0 (3
92.6
3) 3
39.7
3 (3
8.83
) 8
9.65
8
.76
(1.2
3) (5
.13)
Actu
aria
l Los
s/ (
Gai
n) (
Prev
ious
Yea
r) (
165.
95)
(38
7.70
) 4
10.7
1 (
20.9
2) 2
1.63
(
3.82
) 1
.98
10.
20
5Pr
emiu
m P
aid
(21.
78)
——
——
——
—
Prem
ium
Pai
d (P
revi
ous
Year
) (
7.84
) -
-
-
-
-
-
-
6Pa
st S
ervi
ce C
ost
——
——
——
——
Past
Ser
vice
Cos
t (Pr
evio
us Y
ear)
4,0
53.8
5 -
7
0.21
-
-
-
-
-
7Be
nefit
Pai
d (8
57.2
5) (8
76.5
5) (1
14.6
9) (7
.86)
(62.
01)
(0.7
2) (6
.45)
(9.5
6)
Bene
fit P
aid
(Pre
viou
s Ye
ar)
(57
1.18
) (
915.
21)
(92
.93)
(9.
91)
(62
.57)
(0.
55)
(0.
05)
(25
.60)
8P.
V. o
f DBO
(Clo
sing
) 9
,425
.54
12,
384.
44
2,3
51.7
9 1
56.4
2 2
66.5
8 3
5.46
6
3.50
6
2.71
P.V.
of D
BO (
Clos
ing)
(Pr
evio
us Y
ear)
9,1
27.8
4 1
1,98
0.00
1
,976
.53
181
.34
222
.06
24.
04
25.
78
71.
93
116
MECON
A.3 Reconciliation of Fair Value of Plan Assets and Obligations.
TheCompanyhaswholly/partly funded thegratuity liability througha separateGratuityFund.The fairvalueoftheplanassetsismainlybasedontheinformationgivenbyLICthroughwhomtheinvestmentshavebeenmadebytheFund.InvestmentsofthefundisalsomadeinflexidepositaccountwithBanks.ThereconciliationofFairValueofPlanAssetsoftheGratuityFundandDefinedBenefitGratuityobligationsareasunder:
(₹ in lakhs)
Sl. Particulars As on 31.03.2019 As on 31.03.2018
1 F.V of Plan Assets (Opening) 5,107.85 5,274.88
2 InterestIncome 349.21 376.73
3 BenefitPayment (845.94) (552.21)
4 Contributions made 21.34 8.45
5 Actuarial(Loss)/Gain - -
6 F.V. of Plan Assets (Closing) 4,632.46 5,107.85
7 P.V.ofD.B.O.(Closing) 9,425.54 9,127.84
Net liability / (assets) recognised in the Balance Sheet 4,793.08 4,019.99
The Company expects to contribute the amount to the Gratuity Fund during the Year 2019-20 afterconsideringliabilityandfundposition.
A.4 Provident Fund
Company’s contribution paid/payable during the year to the Provident Fund Trust are recognised inthe StatementofProfit&Loss. TheCompany’sProvidentFundTrust is exemptedunder section17ofEmployees’ProvidentFundandMiscellaneousProvisionsAct,1952.Theconditionsforgrantofexemptionsstipulatethattheemployershallmakegooddeficiency,ifany,intheinterestratedeclaredbytheTrustsvis-a-visstatutoryrate.TheCompanyhasalreadymadeadequateprovisionsintheaccountsbasedonactuarialvaluationofProvidentFund.
Thedefinedbenefitobligations,otherthanGratuityandProvidentfund,areunfunded.
117
MECON
MECON Limited
A.5
Exp
ense
s rec
ogni
sed
in S
tate
men
t of P
rofi t
& L
oss
(₹ in
lakh
s)
Sl.
Part
icul
ars
12
34
56
78
Grat
uity
Leav
e En
cash
men
t
Post
R
etire
men
t M
edic
al
Bene
fits
Post
R
etire
men
t Se
ttlem
ent
Bene
fits
Empl
oyee
Fa
mily
Be
nefit
Sc
hem
e
Ret
irem
ent
Gift
Long
Se
rvic
e Aw
ard
LTC/
LTA
1Cu
rren
t Ser
vice
Cos
t 2
97.4
2 7
63.1
4 —
7.9
9 —
1.5
5 4
3.44
—
Curr
ent S
ervi
ce C
ost (
Prev
ious
Yea
r) 1
54.4
0 7
89.8
7 -
1
0.79
-
1
.45
2.1
1 -
2Pa
st S
ervi
ce C
ost
——
——
——
——
Past
Ser
vice
Cos
t (Pr
evio
us Y
ear)
4,0
53.8
5 -
7
0.21
-
-
-
-
-
3In
tere
st C
ost
693
.71
910
.48
150
.22
13.
78
16.
88
1.8
3 1
.96
5.4
7
Inte
rest
Cos
t (Pr
evio
us Y
ear)
365
.69
785
.27
104
.90
13.
08
16.
67
1.7
5 1
.44
6.8
1
4In
tere
st In
com
e on
Pla
n As
sets
(388
.20)
——
——
——
—
Inte
rest
Inco
me
on P
lan
Asse
ts (
Prev
ious
Yea
r) (
384.
57)
-
-
-
-
-
-
-
Expe
nses
Rec
ogni
sed
in s
tate
men
t of P
rofit
and
Los
s 6
02.9
3 1
,673
.62
150
.22
21.
77
16.
88
3.3
8 4
5.40
5
.47
Expe
nses
Rec
ogni
sed
in s
tate
men
t of P
rofit
and
Los
s (P
revi
ous
Year
) 4
,189
.37
1,5
75.1
4 1
75.1
1 2
3.87
1
6.67
3
.20
3.5
5 6
.81
A.6
Exp
ense
s rec
ogni
sed
in O
ther
Com
preh
ensi
ve In
com
e (₹
in la
khs)
Sl.
Part
icul
ars
12
34
56
78
Grat
uity
Leav
e En
cash
men
t
Post
R
etire
men
t M
edic
al
Bene
fits
Post
R
etire
men
t Se
ttlem
ent
Bene
fits
Empl
oyee
Fa
mily
Be
nefit
Sc
hem
e
Ret
irem
ent
Gift
Long
Se
rvic
e Aw
ard
LTC/
LTA
1R
e-re
mea
sure
men
ts d
ue to
cha
nges
in fi
nanc
ial a
ssum
ptio
ns
(37.
60)
(59.
96)
(11.
76)
(0.5
5)—
(0.1
2) (0
.25)
—
Re-
rem
easu
rem
ents
du
e to
ch
ange
s in
fin
anci
al
assu
mpt
ions
(P
revi
ous
Year
) (
124.
55)
(30
3.07
) -
(
3.00
) -
(
0.64
) 4
.29
-
2R
e-re
mea
sure
men
ts d
ue to
cha
nges
in e
xper
ienc
e ad
just
men
ts 2
23.2
0 (3
32.6
7) 3
51.4
9 (3
8.28
) 8
9.65
8
.88
(0.9
8) (5
.13)
Re-
rem
easu
rem
ents
du
e to
ch
ange
s in
ex
perie
nce
adju
stm
ents
(P
revi
ous
Year
) (
41.4
0) (
84.6
3) 4
10.7
1 (
17.9
2) 2
1.63
(
3.18
) (
2.32
) 1
0.20
3R
etur
n on
Pla
n As
sets
(exc
ludi
ng In
tere
st In
com
e)—
——
——
——
—
Ret
urn
on P
lan
Asse
ts (
excl
udin
g In
tere
st In
com
e) (
Prev
ious
Yea
r) -
-
-
-
-
-
-
-
Expe
nses
reco
gnis
ed in
Oth
er C
ompr
ehen
sive
Inco
me
185
.60
(392
.63)
339
.73
(38.
83)
89.
65
8.7
6 (1
.23)
(5.1
3)
Expe
nses
reco
gnis
ed in
Oth
er C
ompr
ehen
sive
Inco
me
(Pre
viou
s Ye
ar)
(16
5.95
) (
387.
70)
410
.71
(20
.92)
21.
63
(3.
82)
1.9
7 1
0.20
118
MECON
A.7 Actuarial Assumptions
2018-19 2017-18 1 DiscountRate(perannum) 7.65% 7.60%2 MortalityRate Indian Assured Lives Mortality
(2006-08)UltimateIndian Assured Lives Mortality(2006-08)Ultimate
3 WithdrawalRate (perannum)
0.10% to0.50%dependingonagegroup.10%flatatallagegroupsforContract Employees
0.10%to0.50%dependingonagegroup. 10%flat at all age groupsforContractEmployees
4 MedicalInflationRate (perannum)
12%forfirst5yearsandthereafter8%
12%forfirst5yearsandthereafter8%
5 RateofreturnonPlanAssets(perannum)
7.29%-7.80% 7.4%-7.65%
6 SalaryEscalation (perannum)
16%onBasicPay 16%onBasicPay
Theestimateoffuturesalaryincreaseconsideredinactuarialvaluation,takes into account inflation rate, seniority, promotion and otherrelevantfactors.
A.8 Financial Assumptions Sensitivity Analysis
(₹ in lakhs)
Sl. No. Particulars
0.5 %age decrease in Discount
Rate
0.5 %age increase in Discount
Rate
0.5 %age decrease in Salary Rate
0.5 %age increase in Salary Rate
1 Gratuity 9,770.18 9,105.67 9,379.42 9,456.09
2 LeaveEncashment 13,008.29 11,812.33 11,806.42 13,009.21
3 PostRetirementSettlementBenefits 162.16 150.85 150.81 162.17
4 EmployeeFamilyBenefitScheme 270.40 262.93 - -
5 RetirementGift 36.58 34.37 - -
6 LongServiceAward 66.03 61.01 - -
7 LTC/LTA 63.91 61.55 - -
A.9 Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme:
(₹ in lakhs)
Sl. No. Particulars
One percentage point increase in medical
inflation rate
One percentage point decrease in medical
inflation rate
1 Increase/(decrease) on aggregate servicecost and interest cost of post retirementmedicalbenefits
16.76 (14.50)
2 Increase/(decrease)onpresentvalueofpostretirement benefit obligations as at 31st,March,2019
259.82 (246.54)
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A.10 Expected Cash Flows for the following years
(₹ in lakhs)
Period Gratuity Leave EncashmentYear1 1,089.77 912.18Year2 1,201.00 928.16Year3 1,092.85 1,035.04Year4 1,083.75 1,227.30Year5 938.79 1,544.55Year6 968.81 1,685.04Next6years 3,050.58 5,052.17
B Defined Contribution Scheme
B.1 Post Retirement Pension Benefits
i) 10% of Basic Pay&DearnessAllowance for executives to be contributed by theCompanyw.e.f.01.01.2007.
ii) 6%ofBasicPay&DearnessAllowancefornon-executivestobecontributedbytheCompanyw.e.f.01.01.2012.
B.2 Expenses recognised in Statement of Profit & Loss for the year
(₹ in lakhs)
Particulars Post Retirement Pension Benefits
2018-19 2017-18
ExpenseschargedtoStatementofProfitandLoss 1,623.47 1,599.35
40.11 DISCLOSURE UNDER IND AS-24 ON “RELATED PARTY DISCLOSURES”
i) Related Parties and their relationships:
Name of the Related Party Nature of RelationshipM/s.Metallurgical&EngineeringConsultants(Nigeria)Limited JointVentureCompanyBoard of Trustees,MECON Employees’ Provident Fund andGratuityFund
PostEmploymentBenefitPlans
Key Management PersonnelShriAtulBhatt ChairmanandManagingDirectorShriP.K.Sarangi Director(Technical)ShriGoutamChatterjee Director(Commercial)ShriSalilKumar Director(Projects)ShriR.H.Juneja(w.e.f.20.04.2018) Director(Finance)ShriSaraswatiPrasad,IAS GovernmentDirectorShriT.Srinivas(from24.05.2018to16.07.2018) GovernmentDirectorShriSunilBarthwal,IAS(upto24.05.2018) GovernmentDirectorSmtRasikaChaube(w.e.f.16.07.2018) GovernmentDirectorShriSisirKumarAppikatla IndependentDirectorShriDeepakKrishan(w.e.f.23.01.2019) IndependentDirector
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ii) The details of transactions between the Company and the Related Parties other than Key Managerial Personnel:
(₹ in lakhs)
Sl.No. Name of the related party M/s.Metallurgical & Engineering Consultants (Nigeria) Limited
Particulars 2018-19 2017-18
1. Transactionduringtheperiod NIL NIL
2. OutstandingBalancesasattheendoftheperiod NIL NIL
Sl. No. Name of the related party Board of Trustees, MECON Employees’ Provident Fund and Gratuity Fund
Particulars 2018-19 2017-18
1. Transactionduringtheperiod 1,877.88 1,768.88
2. OutstandingBalancesasattheendoftheperiod NIL NIL
iii) The details of transactions and balances pertaining to Key Managerial Personnel:
(₹ in lakhs)
Sl. No. Particulars 2018-19 2017-18
1. Short-TermEmployeeBenefits 139.95 114.18
2. PostEmploymentBenefits 86.97 53.76
3. OtherLong-TermBenefits 85.12 33.38
4. TerminationBenefits — –
5. Share-basedPayment — –
6. Sittingfees 1.50 1.00
7. OutstandingBalancesasattheendoftheperiod NIL NIL
Short-TermEmployeeBenefitsexcludesmedicalfacilitiesprovidedatCompany’shospital,monetaryvalueofwhichisnotascertainable.
iv) Government-related Entities
The Company is a wholly owned Government of India, Central Public Sector Enterprise under theadministrative control ofMinistry of Steel. The company applies exemption from detailed disclosuresrequiredunderIndAS-24withrespecttorelatedpartytransactionsandoutstandingbalances, includingcommitments,withGovernment andGovernment relatedEntities.The significant transactions arewithotherCentralPublicSectorEnterpriseswhichareundercontrolofGovernmentofIndia.Thetransactionswithsuchentitiesarenormal,basedonmarketdrivenratesatarmslengthprice.
a) Name of Government-related entities and description of relationship wherein significant amount of transaction carried out :
Sl. No. Government-related Entities Relationship
1. AirportsAuthorityofIndia CentralPublicSectorEnterprise2. BharatElectronicsLimited CentralPublicSectorEnterprise3. BharatPetroleumCorporationLimited CentralPublicSectorEnterprise4. BharatSancharNigamLimited CentralPublicSectorEnterprise
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MECON Limited
Sl. No. Government-related Entities Relationship
5. CentralCoalfieldsLimited CentralPublicSectorEnterprise6. GAIL(India)Limited CentralPublicSectorEnterprise7. HindustanCopperLimited CentralPublicSectorEnterprise8. HindustanPetroleumCorporationLimited CentralPublicSectorEnterprise9. IndianOilCorporationLimited CentralPublicSectorEnterprise10. KIOCLLimited CentralPublicSectorEnterprise11. MangaloreRefinery&PetrochemicalsLimited CentralPublicSectorEnterprise12. NationalAluminiumCompanyLimited CentralPublicSectorEnterprise13. NLCIndiaLimited CentralPublicSectorEnterprise14. NMDCLimited CentralPublicSectorEnterprise15. OilIndiaLimited CentralPublicSectorEnterprise16. Oil&NaturalGasCorporationLimited CentralPublicSectorEnterprise17. RashtriyaIspatNigamLimited CentralPublicSectorEnterprise18. SteelAuthorityofIndiaLimited CentralPublicSectorEnterprise19. UraniumCorporationofIndiaLimited CentralPublicSectorEnterprise
b) Transactions with Government-related Entities :(₹ in lakhs)
Sl. No. Name of the Entity Nature of
Transaction 2018-19 2017-18
Rendering of Services:
1. BharatElectronicsLimited Revenue 833.39 602.32
2. BharatPetroleumCorporationLimited Revenue 455.38 260.01
3. GAIL(India)Limited Revenue 9,554.66 10,603.52
4. GAIL(India)Limited EstateIncome 125.21 78.97
5. HindustanCopperLimited Revenue 69.06 47.00
6. HindustanPetroleumCorporationLimited Revenue 716.64 402.69
7. IndianOilCorporationLimited Revenue 195.59 146.24
8. KIOCLLimited Revenue 146.10 51.95
9. MangaloreRefinery&PetrochemicalsLimited Revenue 326.35 287.70
10. NationalAluminiumCompanyLimited Revenue 161.35 79.60
11. NMDCLimited Revenue 5,272.69 3,590.77
12. Oil&NaturalGasCorporationLimited Revenue 50.47 95.47
13. OilIndiaLimited Revenue 232.91 –
14. RashtriyaIspatNigamLimited Revenue 1,765.18 2,006.63
15. SteelAuthorityofIndiaLimited Revenue 8,664.69 12,865.61
16. SteelAuthorityofIndiaLimited SharingofCommonExpenses
1,090.00 1,090.00
17. UraniumCorporationofIndiaLimited Revenue 66.43 199.66
18. Others Revenue/Others 104.78 782.74
Contd...
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Sl. No. Name of the Entity Nature of
Transaction 2018-19 2017-18
Receiving of Services:1. BharatSancharNigamLimited Telephone / Internet
Charges54.44 70.85
2. Others Telephone / Internet/Consulting/EstateCharges,etc.
224.77 100.90
Amount Receivable:1. BharatElectronicsLimited TradeReceivable 270.64 481.172. BharatPetroleumCorporationLimited TradeReceivable 340.87 95.403. CentralCoalfieldsLimited TradeReceivable 142.50 318.214. GAIL(India)Limited TradeReceivable 7,183.21 4,262.175. HindustanPetroleumCorporationLimited TradeReceivable 464.58 229.316. IndianOilCorporationLimited DepositsReceivable 67.48 67.487. IndianOilCorporationLimited TradeReceivable 134.89 96.508. MangaloreRefinery&PetrochemicalsLimited TradeReceivable 121.75 134.789. NationalAluminiumCompanyLimited TradeReceivable 153.32 169.7410. NMDCLimited TradeReceivable 1,956.41 1,443.4311. NLCIndiaLimited TradeReceivable 592.82 662.1612. OilIndiaLimited TradeReceivable 58.90 –13. Oil&NaturalGasCorporationLimited TradeReceivable 182.69 64.0414. RashtriyaIspatNigamLimited TradeReceivable 3,854.73 4,589.2815. SteelAuthorityofIndiaLimited TradeReceivable 19,258.60 15,861.2616. Others Trade Receivable /
DepositsReceivable370.28 354.30
The above transactions with the Government-related Entities cover transactions that are significantindividually. TheCompany has also entered into transactions, with other variousGovernment-relatedEntities,whichareinsignificant,individuallyandhencenotdisclosedindividually.
40.12 DISCLOSURE UNDER IND AS-28 ON “INVESTMENTS IN ASSOCIATES AND JOINT VENTURES”
AsperIndAS-28“InvestmentsinAssociatesandJointVentures”,theCompany’sshareofownershipinterest,assets, liabilities, income, expenses, contingent liabilities and capital commitments in the joint venturecompany,incorporatedinNigeria,aregivenbelow:
(₹ in lakhs)
Name of the Joint Venture Company
% of Company’s Ownership
Interest
Assets Liabili-ties Income Expendi-
ture
Contin-gent
Liabilities
Capital Commit-
ments
Metallurgical&EngineeringConsultants (Nigeria)Limited
50
(50)
3.41
(27.60)
313.36
(335.47)
11.76
(15.15)
46.14
(55.48)
NIL
(NIL)
NIL
(NIL)
Figuresinbracketrelatestopreviousyear
(₹ in lakhs)
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MECON Limited
TheabovefiguresarebasedontheauditedaccountsofMetallurgical&EngineeringConsultants(Nigeria)Ltd. for the year ending 31.12.2014. Reporting currency of Metallurgical & Engineering Consultants(Nigeria)Ltd.isNaira.
AssetsandLiabilitiesarereportedusingtheclosingrateofexchangeason31.12.2014whereasIncomeandExpenditurearereportedusingtheaverageexchangerateinforceduringtheyear2014asavailable.
40.13 DISCLOSURE UNDER IND AS-33 ON “EARNINGS PER SHARE”
CalculationofEarningsperShare:
Sl. No. Particulars 2018-19 2017-18
a) Net Profit / (Loss) for the period attributable to EquityShareholders(₹inlakhs)
1,374.01 5,802.33
b) WeightedaveragenumberofEquityShares(Refer Note 20) 4,01,38,360 4,01,38,360
c) EarningsPerShare(BasicandDiluted)(a)/(b)(in₹) 3.42 14.46
d) FaceValuepershare(in₹) 10.00 10.00
40.14 DISCLOSURE AS PER IND AS-108 ON “OPERATING SEGMENTS”
A. General Information
i) TheCompany has identified three “Strategic Business Units” (SBUs) as “Operating Segments”. These“OperatingSegments” are reportedbasedonnatureof servicesofferedby these segments, technology /marketingstrategiesofthebusinesses,organizationstructure&themanagementreportingsystem.
Operating Segment Composition:
a) “Metals” includesIron&Steel,RollingMills,Non-Ferrous,RawMaterials&Mining,Refractoriesetc.
b) “Energy” includesRenewableEnergy,Powerplant-Thermal&Hydel,Transmission&Distribution,RLA&RMUstudies,Oil&Gaspipelines,Petro-chemical&Refineries,POLDepots,RetailOutletsetc.
c) “Infrastructure” includes Architecture & Town Planning, Ports & Material Handling, Roads,Highways,Bridges&Flyovers,Defence,Environmental&Hydroengineering,ManagementAdvisoryServices,InformationTechnologyetc.
ii) TheSBUs aremonitoredby theBoardofDirectors,who is collectively theCompany’sChiefOperatingDecisionMaker(CODM)andstrategicdecisionsaboutperformanceassessmentaremadeonthebasisofSegmentOperatingResults.
iii) Segment Revenue comprises Revenue from Engineering & Consultancy Services and Revenue fromConstructionContractsfortheJobsinIndiaandabroad.
iv) UnallocatedcorporateexpenditureincludesexpensesincurredoncorporateservicesprovidedtoOperatingSegmentsandotherexpensesnotallocableonareasonablebasistoOperatingSegments.
v) Segment Assets and Segment Liabilities representoperatingassetsandliabilitiesrespectivelywhicharedirectlyattributabletothesegmentorallocatedtothesegmentonareasonablebasis.
vi) Property,Plant&EquipmentandIntangibleAssetsusedintheCompany’sbusinessarecommoninnatureforallbyand largeand thereforearenotdirectlyattributable to the segmentor canbeallocated to thesegmentonareasonablebasis.However,depreciation,amortizationandimpairmentexpenses,ifany,areallocatedtosegmentbasedonmanhoursconsumed.
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B. Information / Reconciliation of Reportable Segment Profit or Loss, Assets and Liabilities
(₹ in lakhs)
SEGMENTS METALS ENERGY INFRASTRUCTURE TOTAL
ParticularsCurrent
YearPrevious
YearCurrent
YearPrevious
YearCurrent
YearPrevious
YearCurrent
YearPrevious
Year
I. SEGMENT REVENUE
a. Segment Revenue from External Customers
20,785.76 20,070.35 17,582.32 17,664.00 8,649.16 6,838.27 47,017.24 44,572.62
b. "Intersegment Revenues"
- - - - - - - -
c. Other Operating Revenue
707.38 2,321.71 151.14 30.02 44.60 1,112.73 903.12 3,464.46
REVENUE FROM OPERATIONS
21,493.14 22,392.06 17,733.46 17,694.02 8,693.76 7,951.00 47,920.36 48,037.08
a. Unallocated Interest and Other Income
- - - - - - 5,119.69 10,924.95
II. TOTAL INCOME 21,493.14 22,392.06 17,733.46 17,694.02 8,693.76 7,951.00 53,040.05 58,962.03
III. SEGMENT RESULTS [Profit/(Loss)]
(1,712.71) (7,819.33) 2,245.67 2,197.88 (2,520.65) (812.14) (1,987.69) (6,433.59)
a. Interest Income - - - - - - 3,770.82 3,872.74
b. Non Operating Income
- - - - - - 1,348.87 7,052.21
c. Finance Costs - - - - - - 142.11 165.91
d. Non Operating Loss - - - - - - 0.17 2.02
e. Accretion / (Decretion) to Jobs-in-Progress
- - - - - - (1,992.28) 78.40
IV. PROFIT/(LOSS) BEFORE TAX
- - - - - - 997.44 4,401.83
Income Taxes - - - - - - (376.57) (1,400.50)
V. PROFIT/(LOSS) AFTER TAX
- - - - - - 1,374.01 5,802.33
VI. OTHER INFORMATION
a. Segment Assets 45,175.12 39,012.57 17,199.15 15,001.91 9,465.97 9,048.66 71,840.24 63,063.14
b. Unallocated Corporate Assets
- - - - - - 71,665.22 67,784.55
c. Total Assets - - - - - - 143,505.46 130,847.69
d. Segment Liabilities 49,906.07 56,516.20 8,768.36 9,238.22 11,646.95 12,176.31 70,321.38 77,930.73
e. Unallocated Corporate Liabilities
- - - - - - 39,138.13 32,332.89
f. Total Liabilities - - - - - - 109,459.51 110,263.62
g. Depreciation & Amortisation
391.53 497.78 247.76 308.24 127.04 129.44 766.33 935.46
h. Non-Cash Expenses other than Depreciation
748.65 1,303.71 2,515.32 83.69 456.77 196.13 3,720.74 1,583.53
i Capital Employed - - - - - - 25,696.12 12,940.91
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C. Information about geographical areas
Disclosure of Information on Geographical Segment is not made considering the nature of businessactivities/operationsbeingcarriedoutbytheCompanymainlywithinthecountryandthereforethereisnoreportablegeographicalsegment.
D. Information about major customers
Duringtheyearended31stMarch,2019,₹13,393.36lakhs(PreviousYear₹11,507.83lakhs)ofCompany’srevenues,eachexceeding10%inthe“Metals”Segment,arederivedfrom2(two)(PreviousYear1(one))external customers.
Duringtheyearended31stMarch,2019,₹9,554.66 lakhs(PreviousYear₹10,568.48 lakhs)ofCompany’srevenues,eachexceeding10%inthe“Energy”Segment,arederivedfrom1(one)(PreviousYear1(one))external customers.
Duringtheyearended31stMarch,2019,₹NIL(PreviousYear₹NIL)ofCompany’srevenues,eachexceeding10%inthe“Infrastructure”Segment,arederivedfromexternalcustomers.
40.15 DISCLOSURE AS PER IND AS-115 “REVENUE FROM CONTRACTS WITH CUSTOMERS”
a) Disaggregationof revenue intooperatingsegmentsandgeographicalareas for theyearended31st March,2019ispresentedbelow:-
(₹ in lakhs)
SegmentRevenue as per Ind AS 115 Other
Operating Revenue
Total as per Profit & Loss / Segment
ReportingDomestic Foreign Total
Metals 20,689.82 95.94 20,785.76 707.38 21,493.14
Energy 17,215.87 366.45 17,582.32 151.14 17,733.46
Infrastructure 8,649.16 - 8,649.16 44.60 8,693.76
Total 46,554.85 462.39 47,017.24 903.12 47,920.36
b) The opening and closing balances of contract assets and contract liabilities from contracts withcustomersarepresentedbelow:-
(₹ in lakhs)
Particulars Contract Assets Contract Liabilities
OpeningBalance(Ason01.04.2018) NIL 5,064.12
ClosingBalance(Ason31.03.2019) NIL 5,010.52
c) Duringtheyearended31stMarch,2019,thecompanyrecognizedrevenueof₹558.13Lakhsarisingfromopeningcontractliabilitiesasof1stApril,2018.
d) Theaggregatevalueofremainingperformanceobligationsthatarecompletelyorpartiallyunsatisfiedasof31stMarch,2019is₹1,90,743.34LakhsandtheCompanywillrecognisethisasrevenueasandwhenperformanceobligationsaresatisfied.
e) Determining the timing of satisfaction of performance obligations:- The Company recognizes revenueusingOutputmethodbasedonsatisfactionoftheperformanceobligation/righttoreceivepayment.Outputmethodmeasuresprogress towards satisfactionof performanceobligations in amannerthatprovidesafaithfuldepictionofthetransferofgoodsorservices.
f) Determining the transaction price with respect to estimating variable consideration:- Incaseswhereliquidateddamagesarisesoutofcontractualtermswhentheworkisnotcompletedwithinthecompletionscheduleor fornon-achievementofanyparameter, the liquidateddamagesamount isadjustedfromthecontractfeeforrevenuerecognition.
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g) Effectivefrom1stApril,2018,theCompanyhasadoptedIndAS-115usingthecumulativecatchupmethod.Thestandardisappliedretrospectivelyonlytocontractsthatarenotcompletedasatthedateofinitialapplicationandthecomparativeinformationhavenotbeenrestatedduetoinitialapplicationofthisstandard.TheCompanyrecognizedanetincreaseinopeningretainedearningsby₹13,485.57lakhsason1stApril,2018duetothecumulativeimpactofadoptingthenewrevenuestandard.TheimpactwasprimarilyduetochangeinaccountingpoliciesforRevenueRecognition.
PursuanttoadoptionofIndAS115,ProfitAfterTax(PAT)hasincreasedby₹60.96lakhsandTotalAssets&Liabilitieshaveincreasedby₹5,739.40lakhs.
h) RevenuefromforeignjobsisrecognisedonthebasisofvalueofinvoicesraisedinlinewithapprovedaccountingpolicyandIndianAccountingStandardsasapplicable.
40.16 Considering thenatureofCompany’sbusiness and the typeof assetsheldby theCompany, there isnoindicationoflossduetoimpairmentofassetsasat31.03.2019asperIndAS-36.
40.17 Other Income includes interest on deposits with banks / financial institutions / employees, othermiscellaneous income, etc. which are recognized on accrual basis. However, dividend income frominvestmentsisrecognizedasandwhentherighttoreceivethepaymentisestablished.
40.18 Incaseofforeclosureofjobs,thefeemutuallysettledbetweentheclientandtheCompanyisconsideredas100%valueofworkdoneandincomeisaccountedforaccordingly.Incase,thesettledfeeislessthantheincomealreadybooked,suchexcessincomeischargedtorevenueunderthehead“FeesWithdrawn”(ReferNote37).
40.19 Provision against penalties and fines are made when it is deducted by the client and admitted by theCompany.
40.20 Provisionsagainst liquidateddamagesarenotmade to theextentamountadjusted fromrevenuewhereliquidateddamagesamounthasbeendeductedbytheclient.
40.21 Disclosure on R&D:
(₹ in lakhs)
Particulars 2018-19 2017-18
OpeningBalanceofFund 135.46 135.46
Add:Allocation/Provisionmadeduringtheperiod 29.00 NIL
Less:Adjustment/Utilizationmadeduringtheperiod 1.88 NIL
ClosingBalanceofFund (Refer Note 15) 162.58 135.46
NecessaryR&DFundhavebeencreateddebitingP/LaccountandR&DexpenseshavebeendebitedtoR&DFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.
40.22 Disclosure on CSR:
(₹ in lakhs)
Particulars 2018-19 2017-18 CSRProjects/Programmes,etc. 16.92 40.63Others NIL 1.69TotalAmountSpent 16.92 42.32Amountunspentoutofprescribedallocatedsumduringtheperiod NIL NIL
NecessaryCSR&SDFundhavebeencreateddebitingP/Laccountuptothefinancialyear2013-14andCSR&SDexpenseshavebeendebitedtoCSR&SDFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.UnspentamountcarriedforwardinCSR&SDFundis₹456.07lakhsason31.03.2019(₹456.07lakhsason31.03.2018).
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From2014-15onwardsnecessaryCSRamountisappropriated/transferredtoCSRActivityReserveandCSRamountspentisadjusted/transferredfromCSRActivityReserve.Duringtheyear2018-19₹87.96lakhs(PreviousYear₹NIL)istransferredfromSurplustoCSRActivityReserve.UnspentCSRamountcarriedforwardundertheheadCSRActivityReserveis₹71.04lakhsason31.03.2019(₹NILason31.03.2018).
40.23 InformationinrespectofmicroandsmallenterprisesasrequiredbyMicro,Small&MediumEnterprisesDevelopmentAct,2006(MSMEDAct)readwithnotificationofMinistryofCorporateAffairsdated11th October,2018totheextentinformationavailablewiththeCompanyareasunder:
(₹ in lakhs)
Sl. No. Particulars As at
31.03.2019As at
31.03.2018
(a) Amountremainingunpaidtoanysupplier:
-PrincipalAmount,remainingunpaid 3,828.35 4,018.75
-InterestdueonPrincipalAmount,remainingunpaid – –
(b) AmountofinterestpaidintermsofSection16oftheMSMEDAct along with the amount paid to the suppliers beyondappointeddayduringtheyear
– –
(c) Amount of interest due and payable for the period of delayinmaking payment (which have been paid but beyond theappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMSMEDAct.
– –
(d) Amountofinterestaccruedandremainingunpaidattheendoftheyear
– –
(e) Amountoffurtherinterestremainingdueandpayableeveninthesucceedingyear,untilsuchdatewhentheinterestduesasaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceasadeductibleexpenditureunderSection23oftheMSMEDAct.
– –
40.24 Deferredtaxassetsarerecognizedtotheextentthatitisprobablethattheunderlyingtaxloss,unusedtaxcredits(MATCreditentitlement)ordeductibletemporarydifferencewillbeutilizedagainstfuturetaxableincome.Unrecognizeddeferredtaxassetsarere-assessedateachreportingdateandarerecognizedtotheextentthatithasbecomeprobablethatfuturetaxableprofitswillallowthedeferredtaxassettoberecovered.
40.25 Wagerevisionisduefornon-executiveemployeesw.e.f.01.01.2017.Duringtheyear2018-19,provisionhasbeenmadefor₹75.29lakhs(PreviousYear₹17.69lakhs)towardswagerevisioninrespectofnon-executiveemployees,basedonestimateandinformationasavailable,etc.
40.26 Payrevision isdueforexecutiveemployeesw.e.f.01.01.2017. However,consideringtheDPEOMdated03.08.2017 and the financial status of the company, provision for pay revision in respect of executiveemployeesisnotmadeduringtheyear.However,thematterwillbereviewedin2019-20basedoncompany’sperformance.etc.
40.27 Advance of ₹756.86 lakhs was given to M/s Mysore Construction Company (W.O. No. 11.51/Q6AA/Civil/7720dated05.12.2005)againstvalidBankGuarantees.TheCompanylodgedclaimswithinduedateagainstBankGuarantees submittedby theparty. However,M/sMysoreConstructionCompanysoughtinjunctionagainsttheencashmentofBankGuaranteefromHon’blePrincipalDistrictCourtatCuddalore.Hon’blePrincipalDistrictCourt,CuddaloredirectedM/sMysoreConstructionCompanytokeeptheBankGuaranteesinexistencetilldisposalofpetition.
40.28 Consequent to the execution case betweenM/sHindustan Controls and Equipment Pvt. Ltd andM/sMECONLimited,anaccountpayeechequeof₹2,084.53lakhsdated06.08.2019favoringM/sHindustanControlsandEquipmentPvt.Ltdwasdeposited in theCommercialCourt,Ranchi(executioncourt)on
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06.08.2019 by the Company against warrant of attachment issued by the Commercial Court, Ranchi.PendingfinaldecisionoftheCompany’sappealinHon’bleJharkhandHighCourt,theCompanyrequestedtheCommercialCourttodirecttheclaimanttosubmitsomeformofsecurityintheCommercialCourt,Ranchiinordertowithdrawthedepositedchequeandthesamehasbeentreatedascontingentliability.
40.29 Financial Instruments:
Financialassets/liabilitiesarerecognizedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionofthefinancialassetisalsoadjusted.Subsequenttoinitialrecognition,allfinancialassetsaremeasuredeitheratamortisedcostorat fairvalue. Financial liabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.
Valuationprocessandtechniqueusedtodeterminefairvalue:
1) Thecarryingamountoffinancialassetsandliabilitieswithlessthan12monthsareconsideredtoberepresentativeoftheirfairvalue.
2) Investmentsinassociateandjointventurearemeasuredatcost.
Risk Management
TheCompanyisexposedtovariousrisksinrelationtofinancialinstruments.Themaintypesofrisksaremarketrisk,creditriskandliquidityrisk.TheCompany’sriskmanagementiscoordinatedatitsheadquarters,inclosecooperationwiththeboardofdirectors,andfocusesonactivelysecuringtheCompany’sshorttomedium-termcashflowsbyminimising the exposure to volatile financialmarkets. Long-termfinancialinvestmentsaremanagedtogeneratelastingreturns.Thecompanydoesnotactivelyengageinthetradingoffinancialassets.ThemostsignificantfinancialrisktowhichtheCompanyisexposediscreditrisk.
Credit Risk
CreditriskistheriskthatacounterpartyfailstodischargeanobligationtotheCompany.TheCompanyisexposedtothisriskforvariousfinancialinstruments.TheCompany’smaximumexposuretocreditriskislimitedtothecarryingamountoffollowingtypesfinancialassets.
� Cashandcashequivalents
� TradeReceivables
� Otherfinancialassets
The Company continuously monitors defaults of customers and other counterparties, identified eitherindividuallyorbytheCompany,andincorporatedthisinformationintoitscreditriskcontrols.
a) Credit risk management
Cash and cash equivalent
Creditriskrelatedtocashandcashequivalentsismanagedbyonlyacceptinghighlyratedbankdepositsandaccountsindifferentbanksacrossthecountry.
Trade Receivables
TheCompanycloselymonitorsthecredit-worthinessontheTradeReceivablesandonlyprovideservicetocreditworthyparties.
Other financial assets
OtherfinancialassetsforexampleloansandadvancestoemployeesandotherCreditriskrelatedtotheseotherfinancialassetsismanagedbymonitoringtherecoverabilityofsuchamountcontinuously.
b) Expected credit losses
Companyprovidesexpectedcreditlossesbasedonthefollowing:
Trade Receivables
TheCompanyrecognizeslifetimeexpectedcreditlossesonTradeReceivablesusingasimplifiedapproachanduseshistoricalinformationtoarriveatlosspercentagerelevanttoeachcategoryoftradereceivables:
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(₹ in lakhs)
Ageing (As at 31st March, 2019) 0-12 months
12-24 months
24-36 months
More than 36 months Total
Gross carrying amount 30,168.14 6,787.19 3,419.85 11,903.63 52,278.81
Expectedcreditlossprovision 681.80 153.39 77.29 6,780.22 7,692.70
Carryingamountoftradereceivables(Netofimpairment)
29,486.34 6,633.80 3,342.56 5,123.41 44,586.11
Ageing (As at 1st April, 2018) 0-12 months
12-24 months
24-36 months
More than 36 months Total
Gross carrying amount 27,177.24 3,470.41 3,305.77 9,599.04 43,552.46
Expectedcreditlossprovision 559.61 71.25 68.10 4,255.61 4,954.57
Carryingamountoftradereceivables(Netofimpairment)
26,617.63 3,399.16 3,237.67 5,343.43 38,597.89
Ageing (As at 31st March, 2018) 0-12 months
12-24 months
24-36 months
More than 36 months Total
Gross carrying amount 27,165.53 3,458.89 3,306.51 9,555.70 43,486.63
Expectedcreditlossprovision 561.28 71.25 68.11 4,208.93 4,909.57
Carryingamountoftradereceivables(Netofimpairment)
26,604.25 3,387.64 3,238.40 5,346.77 38,577.06
Reconciliation of Expected Credit Loss Provision(₹ in lakhs)
Particulars AmountAs at 31st March, 2018 4,909.57Changesinprovision 45.00As at 1st April, 2018 4,954.57Changesinprovision 2,738.13As at 31st March, 2019 7,692.70
Other financial assets
Companyprovidesforexpectedcreditlossesonfinancialassetsotherthantradereceivablesbyassessingindividualfinancialinstrumentsforexpectationofanycreditlosses.Sincethiscategoryincludesfinancialassetsofvariednaturesandpurpose,thereisnotrendthatthecompanycandrawtoapplyconsistentlytoentirepopulation.TheCompanydoesnothaveanyexpectedlossbasedimpairmentrecognisedonsuchassetsconsideringtheirlowcreditrisknature.40.30 Previousyear’s/year-to-datefigureshavebeenregrouped/recastwherevernecessaryintheBalanceSheet,
StatementofProfit&Loss,CashFlowStatementandNotes,etc.
40.31 Recent Indian Accounting Standards (Ind AS) pronouncements
MinistryofCorporateAffairs(“MCA”)throughCompanies(IndianAccountingStandards)AmendmentRules,2019andCompanies(IndianAccountingStandards)SecondAmendmentRules,2019hasnotifiednewandamendmentstoIndASeffectivefrom1stApril,2019whichtheCompanyshallfollowasapplicable:
a) IndAS116–Leases
IndAS116willreplacetheexistingleasesstandard,IndAS17Leases.IndAS116setsouttheprinciplesforrecognition,measurement,presentationanddisclosureofleasesforbothlesseesandlessors.Itintroduces
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a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use assetrepresentingitsrighttousetheunderlyingassetandaleaseliabilityrepresentingitsobligationtomakeleasepayments.Thestandardalsocontainsenhanceddisclosurerequirementsforlessees.IndAS116substantiallycarriesforwardthelessoraccountingrequirementsinIndAS17.
TheCompanyshallapplythemodifiedretrospectivemethodofthestandardtoitsleases,retrospectively,with thecumulativeeffectof initiallyapplying the standard recognisedat thedateof initial application,i.e.,1stApril,2019.Underthemodifiedretrospectiveapproach,thelesseerecordstheleaseliabilityasthepresentvalueof theremaining leasepayments,discountedusing the lessee’s incrementalborrowingrateasat1stApril,2019.Theright-of-useassetisrecognisedatanamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatedtothatleaserecognisedunderIndAS17immediatelybeforethedateofinitialapplication.Inaccordancewiththestandard,theCompanywillnotapplytherequirementsofIndAS116toshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.
Ontransition,theCompanywillbeusingthepracticalexpedientprovidedbythestandardandtherefore,willnotreassesswhetheracontract,isorcontainsalease,atthedateofinitialapplication.
TheCompanydoesnotexpectanysignificanteffectonaccountofadoptionofIndAS116.
b) IndAS12–IncomeTaxes(amendmentsrelatingtoincometaxconsequencesofdividendanduncertaintyoverincometaxtreatments)
Theamendmentrelatingtoincometaxconsequencesofdividendclarifythatanentityshallrecognisetheincometaxconsequencesofdividendsinprofitorloss,othercomprehensiveincomeorequityaccordingtowheretheentityoriginallyrecognisedthosepasttransactionsorevents.TheCompanydoesnotexpectany impact from this pronouncement.The amendment toAppendix C of IndAS 12 specifies that theamendmentistobeappliedtothedeterminationoftaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates,whenthereisuncertaintyoverincometaxtreatmentsunderIndAS12.Itoutlinesthefollowing:(1)theentityhastousejudgement,todeterminewhethereachtaxtreatmentshouldbeconsideredseparatelyorwhethersomecanbeconsideredtogether.(2)theentityistoassumethatthetaxationauthoritywillhave fullknowledgeof all relevant informationwhile examininganyamount (3)entityhastoconsidertheprobabilityoftherelevanttaxationauthorityacceptingthetaxtreatmentandthedeterminationoftaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrateswoulddependupontheprobability.TheCompanydoesnotexpectanysignificantimpactoftheamendmentonitsfinancialstatements.
c) IndAS19–EmployeeBenefits(PlanAmendment,CurtailmentorSettlement)
TheamendmentsrequiretheCompany
� touseupdatedassumptionstodeterminecurrentservicecostandnetinterestfortheremainderoftheperiodafteraplanamendment,curtailmentorsettlement;and
� torecogniseinprofitorlossaspartofpastservicecost,oragainorlossonsettlement,anyreductioninasurplus,evenif thatsurpluswasnotpreviouslyrecognisedbecauseof the impactof theassetceiling.
TheCompanydoesnothaveanyimpactonaccountofthisamendment.
d) IndAS23–BorrowingCosts
Theamendmentsrequirethatifanyspecificborrowingremainsoutstandingaftertherelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalisationrateongeneralborrowings.TheCompanydoesnotexpectanyimpactfromthisamendment.
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MECON
MECON Limited
FORM AOC-IPart “B”: Associates and Joint Ventures
Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Name of Joint Venture M/s Metallurgical & Engineering Consultants (Nigeria) Limited
1. Latest audited Balance Sheet Date Fortheyearendingon31.12.2014
2. Date on which the Joint Venture was associated or acquired
28.10.1982
3. Shares of Joint Ventures held by the company on the year end
No. 5000
AmountofInvestmentinJointVenture ₹7.60lakhs
ExtentofHolding% 50%
4. Description of how there is significant influence
MajorityofthemembersoftheBoardofM/sMetallurgical& Engineering Consultants (Nigeria) Limited are alsoDirectors / Senior Managerial Personnel of MECONLimited.
5. Reason why the associate/joint venture is not consolidated
Consolidation is not applicable for Joint Venturecompany.
6. Networth attributable to Shareholding as per latest audited Balance Sheet
(-)₹309.94lakhs(50%)
7. Profit / Loss for the year (-)₹34.38lakhs
i. Considered in Consolidation NotApplicable
ii. NotConsideredinConsolidation NotApplicable
In terms of our report of even date
For V. ROHATGI & CO. CHARTERED ACCOUNTANTS
Sd/- (PRAVEER RANJAN)
PARTNER Memb.No.076295
Firm Regn. No.000980C
Sd/- (RAVI BAMBHA)
COMPANY SECRETARY
Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C
(FINANCE)
Sd/- (R. H. JUNEJA)
DIRECTOR (FINANCE)
Sd/- (ATUL BHATT)
CHAIRMAN and MANAGING DIRECTOR
Place : Ranchi
Date : 11th September, 2019
UDIN : 19076295AAAAAB1433
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MECON
CMD MECON Shri Atul Bhatt, welcoming Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel
Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, being briefed about various projects of MECON during her visit to technical sections of MECON
Shri Yogendra Paswan, member of National Commission for Scheduled Caste (NCSC) during his visit to MECON
Under the aegis of Ministry of Steel, MECON participated in METEC 2019 at Dusseldorf, Germany, to showcase India’s Steel Growth story at Indian Steel Pavilion.
Shri Atul Bhatt, CMD MECON, addressing the gathering at India Steel 2019, 4th International Exhibition & Conference on Steel Sector, at Mumbai.
MECON was awarded 1st prize in the16th National Award on Excellence in Cost Management 2018, category- Consulting & others, by the Institute of Cost Accountants of India
MECON received 1st CSR Honourable Mention 2019- Excellence in CSR in Challenging Circumstances from Ministry of Corporate Affairs in presence of Hon'ble President of India and other dignitaries for
implementation of Solar water pumping system in adopted village, Pancha
Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, along with Shri Atul Bhatt, CMD MECON, Shri PK Sarangi, Director (Technical), Shri Goutam Chatterjee, Director (Commercial), Shri Salil Kumar, Director (Projects) and Shri RH Juneja,
Director (Finance) during Review meeting of MECON, at Ranchi
GLIMPSES OF CSR ACTIVITIES
Health Camp at Adopted Village - Sungi, Karra, District - RanchiAnnual Examination of Stitching Training Centres
Swacchta Abhiyan at Adopted Village - Pancha, Bundu, District - Ranchi
Painting Competition (Swacchta Abhiyan) for the School Children of Adopted Village - Sungi, Karra, District - Khunti
Foundation Laying of Boys Hostel Building at Orphanage (Anmol Basera), Village - Sungi, Karra, District - Khunti
Cataract Surgery of Villagers of Mecon's Adopted Village at Ispat Hospital, Shyamali
2018-1946th ANNUAL REPORT
MECON LIMITED
MECON
MECON LIMTED(A Govt. of India Enterprise)
MECON YEARS OF
CELEBRATINGTHE MAHATMA
Head O�ceVivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India
CIN No. - U74140JH1973GOI001199www.meconlimited.co.in
For Enquiry Contact
Major O�ces
Joint General Manager (Marketing)Phone : +91-651-2483136/2481440, Fax : +91-651-2482214/ 2482189
E-mail: [email protected]
City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 [email protected] Delhi +91-11-22041872 +91-11-22041214 [email protected] Mumbai +91-22-27812155-58 +91-22-27812275 [email protected] +91-33-22822381-82 +91-33-22824441 [email protected]
Find us on : @MECONLimited /@meconranchi meconranchi
396_1019_ Annapurna Press & Process 0651-2331800, [email protected]