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45th

2017-18ANNUAL REPORT

MECON LIMITED

MECON LIMTED(A Govt. of India Enterprise)

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 : +91-651-2483136/2483653, Fax : +91-651-2482214/ 2482189

E-mail: [email protected]

City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 [email protected] Delhi +91-11-22447417 +91-11-22041214 [email protected] Mumbai +91-22-27812155-58 +91-22-27812275 [email protected] +91-33-22822381-82 +91-33-22824441 [email protected]

MECON

MECON

YEARS OFCELEBRATINGTHE MAHATMA

Find us on : @MECONLimited /@meconranchi meconranchi

The release of the 'Coffee Table Book' and the 'Conclave Report' at the Conclave on Capital Goods for Steel Sector: Manufacture in India 2018 in Bhubaneswar, Odisha in presence of Shri Naveen Patnaik, Chief Minister, Odisha, Shri Chaudhary Birender Singh, Union Minister of Steel, GoI, Shri Dharmendra Pradhan, Union Minister of

Petroleum & Natural Gas & Skill Development and Entrepreneurship, Shri Anant Geete, Union Cabinet Minister for Heavy Industries and Public Sector Enterprises,Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel, GOI and Shri Atul Bhatt, CMD MECON.

Hon’ble Shri Chaudhary Birender Singh, Union Minister of Steel along with Shri Anant Geete, Union Cabinet Minister for Heavy Industries and Public

Sector Enterprises, Shri Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship and

Shri Atul Bhatt, CMD MECON during Conclave on Capital Goods for Steel Sector: Manufacture in India 2018 at Bhubaneswar

Shri Atul Bhatt, CMD MECON welcoming Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel at MECON, Ranchi

Providing hearse vehicle (Dead Body Carrier) to Punjabi Hindu Biradari, Ranchi

Shri Atul Bhatt, CMD MECON welcoming Hon’ble Shri Chaudhary Birender Singh, Union Minister of Steel at MECON, Ranchi

Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel, GOI along with Shri Atul Bhatt, CMD MECON during his visit to MECON

Medical camp organised at Birsa Siksha Niketan, Jagannathpur, Ranchi

Inauguration of Classroom at Pramathanath Madhya Vidyalya Hinoo, Ranchi

Stitching Training Centre, Irgu Toli

2 - day "Orientation Training Program" for teachers of Stitching Training Centers run under Resource generation

schemes of MECON CSR

GLIMPSES OF CSR ACTIVITIES

Primary Education Centre, Pokhar Toli, Ranchi

CORPORATE VISION

To 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.

BOARD OF DIRECTORS

FUNCTIONAL DIRECTORS

Shri P. K. Sarangi Director(Technical)

Shri Goutam Chatterjee Director(Commercial)

Shri Salil Kumar Director(Projects)

Shri R. H. Juneja Director(Finance)

CHAIRMAN

Shri Atul Bhatt ChairmanandManagingDirector

GOVERNMENT DIRECTORS

Shri Saraswati Prasad, IAS SpecialSecretary&FinancialAdvisor,MinistryofSteel

Smt. Rasika Chaube AdditionalSecretary,MinistryofSteel

INDEPENDENT DIRECTOR

Shri Sisir Kumar Appikatla CharteredAccountant

As on the date of AGM

CHAIRMAN AND

MANAGING DIRECTOR

WHOLE TIME

DIRECTORS

Shri Atul Bhatt

Shri Subir Chattopadhyay, Director (Project) (upto 31.08.2017)

Shri R. H. Juneja, Director (Finance) (w.e.f. 20.04.2018)

Shri Salil Kumar, Director (Projects) (w.e.f. 25.01.2018)

Shri Goutam Chatterjee, Director (Commercial)

MANAGEMENTDURING THE

YEAR

MANAGEMENTDURING THE

YEAR

Shri P. K. Sarangi, Director (Technical)

Shri Sisir Kumar Appikatla (upto 12.11.2018)

GOVERNMENTDIRECTORS

INDEPENDENT DIRECTOR

Shri Saraswati Prasad, IAS

Shri Syedain Abbasi, IAS (upto 11.10.2017)

Shri Sunil Barthwal, IAS (11.10.2017- 24.05.2018)

Shri T. Srinivas (24.05.2018-16.07.2018)

Smt. Rasika Chaube, (w.e.f. 16.07.2018)

REFERENCE INFORMATION

Statutory AuditorM/sV.Rohatgi&Company,

CharteredAccountants,1stFloor,SarjanaBuilding,1,MainRoad,

Ranchi–834001(Jharkhand)

� StateBankofIndia

� UnionBankofIndia

� IndianOverseasBank

� BankofBaroda

� UnitedBankofIndia

� YESBank

� AndhraBank

� HDFCBank

� CanaraBank

� AxisBank

� ICICIBank

� IndusIndBank

Shri Ravi Bambha CompanySecretary&

DeputyGeneralManagerIncharge (Board&Coordination)

INVESTOR RELATION

Shri Sekhar Saha DeputyGeneralManagerIncharge(Finance)

BANKERS

TABLE OF CONTENTS

6 - 7 ..... Chairman’sSpeech

8 - 26 ..... BoardReport

27 - 33 ..... ExtractofAnnualReturninFormMGT-9

34 ..... Disclosure of particulars of contracts/ arrangements with related parties inFormAOC-2

35 - 51 ..... DetailsonCSR&Sustainabilityactivities

52 - 53 ..... TechnologyAbsorption

54 - 60 ..... ManagementDiscussion&AnalysisReport

61 - 66 ..... ReportonCorporateGovernance

67 - 75 ..... IndependentAuditors’Report

76 ..... CommentsoftheComptroller&AuditorGeneralofIndia

77 ..... BalanceSheetasat31.03.2018

78 ..... StatementofProfit&Lossfortheyearended31.03.2018

79 ..... StatementofChangesinEquity

80 - 81 ..... CashFlowStatementfortheyearended31.03.2018(IndirectMethod)

82 - 130 ..... Notes including Significant Accounting Policy, Segment Reporting & FormAOC-1

Dear Fellow Shareholders,

Iwelcomeyoualltothe45thAnnualGeneralMeetingof your Company. At this juncture, I have had

the privilege of a full fiscal year as Chairman andManagingDirectorofyourCompany,tobuildonourstrongcommitmenttocreatevalueforourcustomers,employees,shareholdersandcommunity.IthasbeenawatershedyearforyourCompany.Iamdelighted to share that your Company has turnedprofitable,postingProfitAfterTaxof₹58.00Croreaftertwoyearsofconsecutivelossesandisnowonapathofsustainablegrowth.I am confident that this growth momentum willbe maintained to enhance our turnover three foldsto ₹1500 Crores in the next five years. This can beachievedbystrengtheningourcorebusinessinIron&Steelsectorandbydiversifyingintopriority/strategicsectorsoftheGovernment,whereourengineeringandtechnologicalcapabilitiescanbebestleveraged.We have taken important steps aimed at raisingthe visibility of our commitment and repositionedourselvesasanagileandresponsiveorganization.Theempowermentofouremployees,withroleclarity,hasensured a high level of motivation and dedication,whichhasenabledthemtoapplytheirknowledgeandexpertisewithenthusiasmandpassiontoachieveourshared organizational objectives. I believe that our

developmentandprogresshasbeenlargelyduetotheuntiringeffortsmadebyTeamMECON.Financial and Physical PerformanceYour Company has registered a turnover of ₹445.57Crorewhichisabout30%higherthanthepreviousyear.TheRevenue fromOperations has increased by 38%to ₹480.22Crore. Your company has earned a ProfitAfterTaxof₹58Croreafterconsecutive losses in theprecedingtwoyears.TotalNetWorthoftheCompanyhas also improved at the endof thefiscal to ₹205.44Croreasagainst₹146.10Croreatthebeginningoftheyear,animprovementofover40%.After a gap of two years, the Board of Directors ofyourcompanyhaverecommendedEquityDividendof₹10.27CroretotheGovernmentofIndia.Your company’s effort to rationalize costs has beenrecognized by the Institute of Cost Accountants ofIndia,whohaveconferredonus theNationalAwardfor“ExcellenceinCostManagement-2017”.Your Company has developed and sustained clientrelationships by being recognized as a technologyenabledorganizationandproviderofdiversifiednicheservices,leveragingdomainexpertiseandtechnology.YourCompanyiscustomer-centricandcommittedtoorganize itself todeliver “CustomerDelight” throughtimelyprojectexecutionandhighqualityservices.

CHAIRMAN’S SPEECH

AnnualReport2017-186

MECON

I am happy to share with you that despite a highlycompetitive business scenario, your Company wasabletobookordersworth₹1003.43Croreacrossthe3businessverticals.I am delighted to inform that your Company hasbeenconferredwith“InstitutionofEngineers (India)Industry Excellence Award 2017” for demonstratinghighest order of business excellence in providingEngineering and Consultancy.Human Resource – Our Brand AmbassadorsA key deliberation in your Company has beenincreasing credibility and enhancing companyperceptionwithallstakeholders,clientsandmarket.Adefinitivestepinthisdirectionhasbeentoappreciatethatouremployees,besidesbeingourcorestrength,arethequintessentialandmostpowerfulbrandassetswepossess.Endeavoursarebeingundertakento involve,educate,alignandguideeveryonearoundthecorporateobjectives,valuesandvisionoftheCompany.LeadershipdevelopmentandsuccessionplanningbeingcriticalforgrowthofyourCompany,wearecommittedtonurturinganddevelopingouremployees’skillsanddomain expertise through providing ample trainingand growth opportunities to enable them unearththeirgreatest strengthsand integrate themwith theirdeliverables.Withmorethan40%oftheprofessionalsbelowtheageof40years,MECONhastherightblendoftheenergeticyouthandwisdomofexperiencedminds tocontinueto re-engineer its processes and systems to providecuttingedgesolutionstoitsdiversifiedclientele.Road Ahead – StrategyTheMetal vertical of yourCompany is the core andcriticalfactorthathashelpedusbuildourbrand,clienttrustandloyaltyovertheyears.GovernmentofIndia’sfocuson“MakeInIndia”throughpolicymeasureslikeNationalSteelPolicy2017,DomesticallyManufacturedIron & Steel Products (DMI&SP) Policy and otherinitiatives like Import Substitution, Increase in SteelDemand,etc.haspresentedusopportunitiestoenergizeandstrengthenourcore.WenowproposetomoveupthevaluechainbyofferingendtoendEPCsolutionsintheMetalsectorandintroducenewofferings,basedoncurrentmarketneeds.YourCompanyshallalsocontinuetopursueastrategicapproachof furtherdiversificationofourbusiness inotherverticalsonanopportunisticbasistohedgerisksduetocyclicnatureofthemetalsector.Your Company has commenced articulation of adetailed Corporate Plan to support the strategicbusinessgoals, focusonpriorities, identify importantchallengesandopportunities,andidentifyresourceandskill prerequisites to support such initiatives. Besides

focusonsustainabilityaskeydriverthroughtechnologycollaborations across theverticals, theplan shall alsoencompass mechanisms to extend our geostrategicreach to potentialmarkets in the APAC andMENAregions and our aspiration to foray into promisingareasofO&Mbusiness,CentralProcurementServices,Central Inspection Services and Import Substitutioninitiatives.It is envisaged that the combination of the BusinessStrategyandCorporatePlanframeworkwill facilitateinmakinginformedandstrategicdecisionstoensurefurther fortification of our business and make thebenefits of our choices clear across the businessverticals.Steps towards Good Governance YourCompanyrecognizesthatCorporateGovernancerepresents the ethical and moral framework underwhichbusinessdecisionsaretaken.YourCompanyhasalwaysstrivedtocultivategoodcorporategovernancepractices,fostertransparencywithintheorganisation,uphold good corporate governance standards andcommunicate with our stakeholders in a transparentand timely manner. Your Company has implemented business integritymeasuresthroughenforcementofDelegationofPower(DoP) guidance document, articulation of StandardOperating Procedures (SOPs) and practice of ISO9001:2015QualityManagementSystem.Likethepastyears,thisyearalsoyourCompanyscored‘Excellent’ rating in compliance to Guidelines onCorporateGovernanceissuedbyGovernmentofIndiawhichmaintainsour recordofExcellent ratingeveryyear since inception. AcknowledgementI would like to thank our valued Clients for theircontinuedpatronageandconfidenceinthecapabilitiesof this company. Team MECON would continueto serve them by offering quality and cost effectivecustomizedsolutionsforalltheirneeds.WeareparticularlygratefultotheMinistryofSteelfortheirvaluablesupport,guidanceandcooperation.IalsoextendmysinceregratitudetothemembersoftheBoardfortherichnessoftheircounsel,supervisionandcommitmenttothevisionandvaluesoftheCompany.Untiring efforts of team MECON needs a specialmention for their enduring contribution in bringingthecompanybackintoprofits.Finally, a special word of thanks to you, our valuedshareholdersforyourcontinuedsupportandgoodwillthatiscriticaltothesuccessofourcompany.

Thank you & Jai Hind.

Chairman’s Speech

MECONLIMITED 7

DearMembers,

YourDirectorshavethepleasureinpresenting45th AnnualReportontheoperationsoftheCompany

andtheStatementsofAccountsfortheFinancialYearendedon31stMarch,2018.

TheReportoftheStatutoryAuditorsandtheCommentsontheAccountsof theCompanybytheComptrollerandAuditorGeneralofIndia(C&AG)areannexedtothisReport.

1.0 PERFORMANCE HIGHLIGHTS

The closure of financial year 2017-18 assumesspecial significance for the company as belying allapprehensions, it has managed to come out of theshadowofconsecutivelossesoftwopreviousfinancialyears and has posted profits. This feat has beenachieved despite subdued performance of company’scorebusinessareasandcoupleofotherhiccupswhichmakesthisturnaroundmoreremarkable.Thecreditforthisaccomplishmentgoestoemployees’commitmentto perform, formulation of right strategies andorganizationalresolvetoputtheoddsbehind.

The company’s order book instills confidence withcrossing of + ₹1000 croremark and improving steelsector outlook is expected to provide necessarytailwindsforabetterandbrighterfinancialyearahead.Nevertheless, relentlessefforts tomaintain the tempoon existing business and responding to upcoming newopportunitiesfromdiversefieldsholdsthekeytosustainabilityandgrowthimperatives.

Major prestigious projects of national importancecompleted/underprogressduringtheyearinclude:

Metal Sector

� DetailedEngineering&Consultancyservices for7.0 Mtpa Expansion Plan of SAIL/Bhilai Steel Plant havebeenprovidedby your company andfollowingarethemajorachievements:

¾ Installation of New 4,060 m3 (UsefulVolume)BlastFurnaceNo.#8hasbeencompleted and the plant is successfullycommissioned.

¾ Blow-in of Blast Furnace # 8 has beensuccessfully done. Raw Material HandlingSystem delivered raw material to the stockhouseofBF#8successfully.

¾ FirstHeatofBOF#1ofSMS-IIIissuccessfullycompleted.

¾ Successful trial of hot metal transportationthroughtorpedoladlehasbeenaccomplished.It’s a unique system and will provide fullautomation system to torpedo hot metalmanagement.

¾ PreliminaryAcceptanceCertificateforURMisissuedandthemillhasstartedrollingrailsunderhotcommissioning.

¾ A Rail Welding Line for Long Rails ofcapacity 1,100,000 TPA has been installedandsuccessfullycommissionedforproducing260mlongRails(withprovisionofproducing520m rails in future). CommissioningcertificateforRWLisissued.

� Detailed Engineering & Consultancy servicesfor 4.2 Mtpa Expansion Project of SAIL/Rourkela Steel Plantandfollowingarethemajorachievements:

¾ Performance Guarantee Certificate & FinalAcceptance Certificate issued for TurboBlowerandAuxiliaries.

¾ Commissioning certificate issued forCentralized Telecomm System for fullexpansion.

¾ PerformanceGuaranteeCertificateissuedforNew Compressed air station.

BOARD REPORT


MECON

¾ Commissioning certificate issued forIndigenousandBalanceimportedLaboratoryEquipment.

� DetailedEngineering&Consultancyservices for5.7MtpaExpansionProjectofSAIL/Bokaro Steel Plantandfollowingarethemajorachievements:

¾ Commissioningcertificate issued for IDFanComplexSMS-II.

¾ CommissioningcertificateissuedforpropanestorageandhandlingsystemforCRM-III.

� CokeOvenBatteryNo.7atBSL,BokarohasbeensuccessfullycommissionedonemonthearlierthanthescheduleandBSLhasissued“CommissioningCertificate”and“AppreciationLetter”.

� Wet Quenching System, common for COB#7 &COB#8atBSL,Bokaroiscommissioned.

� SAIL/Durgapur Steel Plant had entrusted yourcompany for carrying out Extended Category-IICapitalRepairsofBlastFurnace#4onEPCbasis.BFblowing-inhasbeensuccessfullydone.

� FullRelining jobof oneLimeKilnwas awardedby SAIL/Durgapur Steel Plant on EPC basis. Thejobiscompletedsuccessfullywithinthecontractualtimeperiodandthekilnisundersatisfactoryoperation.This is thefirstLimeKiln Relining job executed successfully onEPC basis.

� Detailed Engineering & Consultancy includingProject Management Consultancy services for2.5Mtpa New Stream Expansion Plan of SAIL/IISCO Steel Plant, Burnpurhavebeenprovidedby your company and following are the majorachievements:

¾ AUniversalSectionMillofcapacity600,000TPAhasbeeninstalledforproducingparallelflangebeamsup to600mmandother largesections.CommissioningCertificatehasbeenissued.

¾ 180 Tons/hour front charging and enddischarging type walking beam Reheatingfurnace for Universal Section Mill PackageNo.15issuccessfullycommissioned.

¾ Performance Guarantee Certificate issuedforYardMachinesStackers&BucketWheelReclaimer.

¾ Final Acceptance Certificate issued for PigCasting Machine Complex, for Coke DryCooling Plant and for Hot Metal HandlingSystem.

� Detailed Engineering & Consultancy servicesincluding Project Management Consultancyservicesarebeingprovidedbyyourcompanyforsetting up of 3.0 Mtpa Integrated Steel Plant ofNMDC LimitedatNagarnar.Theprojectisunderexecution and packages like Coke Oven BatteryNo. 1, Sinter Plant, Blast Furnace and OxygenPlantareinadvancedstageofexecution.

� 1×5StrandsbloomcumroundContinuousCastingMachine No. 4 (CCM#4) in SMS-2, at RINL/Visakhaptnam Steel Plant, Visakhapatnam is successfullycommissioned.Thiscastingmachineis first of its kind in India in terms of castingbiggestroundsofsize510mmdiameter.ItisalsoenvisagedtocastroundbloomstomeettheinputrawmaterialrequirementfortheirupcomingRail

Board Report

MECONLIMITED 9

WheelPlantinRaebareli,UP.Theannualcapacityofthismachineis1.0Mtpaofbloomsandrounds.

PouringofliquidsteelfromladletoTunsdish

Tundishtomouldsubmergedcasting

Withdrawalandstraigthening...................

Torchcuttingmachineanddischargerollertable

� Your company in consortium with Primetals,USA had designed, engineered, manufactured,supplied, erected and commissioned Wire RodMill-2 at RINL/Visakhaptnam Steel Plant, Visakhapatnam on turnkey basis. The mill hasalready achieved a record production of 2553tons/day against the rated capacity of 2000 tpd.This127%ofratedcapacityhasbeenachievedjustafter3monthsofissuanceofPrAC(PerformanceGuaranteeCertificate).

� JSW Steel Limited, Vijaynagar Works hasentrusted your Company for providing Design,Engineering&ConsultancyservicesforRebuilding&CapacityEnhancementoftheirBlastFurnace#

3 (4,019m3UsefulVolume) tobecomecountry’slargest Blast Furnace (5,339m3 Useful Volume).Theprojectisunderexecution.

� VISA Steel Limited, Jajpur,OdishahadentrustedyourCompanyforprovidingDesign,Engineering& Consultancy services for Technological Up-gradationoftheirMiniBlastFurnace.Allthejobshave been completed on schedule and the BlastFurnaceisreadyforcommissioning.

� JSW Steel Limited, Dolvi Works has entrustedyourCompanyforprovidingDesign,Engineering&ConsultancyservicesforinstallationoftheirNewPelletPlant#2(816m2)whichwillbethelargestinthecountry.Theprojectisunderexecution.

� KIC Metaliks Limited, Durgapur has entrustedyourCompanyforprovidingDesign,Engineering&Consultancy services for augmentationofHotMetalproductionbyintroducingPulverizedCoalInjection System, Waste Heat Recovery System(in Hot Blast Stoves) and Oxygen EnrichmentfacilitiesforColdBlastintheirexistingMiniBlastFurnace.Theprojectisunderexecution.

� Design, Engineering & Consultancy services forinstallationofTinPlateComplex&PicklingLine&TandemColdMillforJSW Steel Ltd., Tarapur is beingexecutedonschedule.

� Satish Dhawan Space Centre SHAR, Sriharikota isinstallingnewfacilitiesandAssociatedSystemsfor augmenting existing Solid Propellant SpaceBoosterPlant(SPROB)asapartofitsexpansionprogramme. Your company has been assignedto provide Technical Services (Engineering,Tender Document Preparation etc.) for theaboveaugmentation.TheConcept&Preliminarydesigns developed by your Company have beenapproved by the Standing Design Review Team(SDRT)ofSHARandpresentlydetailengineeringis underway.


MECON

� YourcompanyhasbeenrenderingEPCMservicesto NMDC Limited for setting up of 7 MtpaCrushing plant to crush the Run of ore fromKumaraswamyIronoremines.

MajorTechnologicalpackagelikeCrushingplantandDownhill conveyor system have been commissionedand are in operation. The Downhill conveyor with triangular gallery (5.2 kms. long) is one of the longest Downhill conveyor system in India. AuxiliaryfacilitieslikeSub-station,watersupply,servicecenteretc.havebeencompletedandhandedovertoNMDC.However,otherfacilitiesintheprojectisunderexecution.

Non Ferrous Sector

� National Aluminium Company Ltd. (NALCO) hadawardedconsultancyjobtoyourcompanyforcarryingoutPre-FeasibilityReport(PFR)tosetupa4.0LTPAGreenfieldAluminiumSmelterprojectintheStateofMadhyaPradesh.TheFinalReportis submitted to Client.

� NALCO had awarded your company for thepreparation of TEFR for 0.5 Mtpa AluminaRefinery in Kutch Gujarat, NALCO, which hasbeen successfully completed and submitted toclient.

� The Aluminium Association of India (AAI), Mumbai had awarded your company forpreparationofStudyReportonFixingofMinimumImportPrice(MIP)ofAluminium&itsproductsinthecountry,ThecompleteassessmentreportforfixinguptheMIPvaluesforprimaryaluminiumaswellasdownstreamproductshasbeensubmittedto client.

� Tata Steel Limited has entrusted your companyfor preparation of Detailed Project Report(DPR) for extraction of Nickel through a 1000TPA Nickel Extraction - Demonstration Plantby hydrometallurgical processing of Sukinda

Mines’s Chromite Overburden (COB) availableatBamnipal,Odisha.TheDPRshallbebasedonauniqueprocessdevelopedbyaCanadianbasedR&Dinstitution.TheDPRisunderpreparation.

� YourcompanyhascarriedoutOwner’sEngineeringservices for preparation of budgetary costestimationreportforZincFerriteTreatmentPlantatChanderiya,RajasthanforHindustan Zinc Ltd. andthefinalreportissubmittedtoclient.

Power Sector

� NTPC-SAIL Power Co. Ltd., New Delhi hasentrusted your company to provide DetailedEngineering & Consultancy services for Coalbased Thermal Power Plant (1x250 MW) atRourkela (Phase-II).This Project is envisaged tomeet the future power requirement of RourkelaSteelPlant.Theprojectisunderexecution.

� Consultancy services to carry out Study andEngineering for adhering toMoEF&CCnormsin thirteen (13) existing units in four (4) PowerStationsofNLC India Limited is under progress.

� Detailed Engineering and Consultancy servicesincludingProjectManagementserviceshavebeenprovided to NLC Tamil Nadu Power Limited (NTPL) forinstallationof2x500MWcoalbasedThermal Power Plant at Tuticorin. PerformanceGuaranteetestofboththeunitsiscompleted.

� Your company has been providing DetailedEngineering and Consultancy & ProjectManagement services for installation of oneTurbo-Blower (TB#5)asa standby toTB#4 forRINL/Visakhapatnam Steel Plant. Trial run ofTB#5iscompletedandcommissioningoftheunitis in progress.

� Your company has been providing DetailedEngineering Consultancy services includingProject Management Services to SAIL-IISCO/Steel Plant, Burnpur to meet the requirementof power, process steam and cold Blast air,Compressedairstation,PowerandBlowingStationalong with TRT. Final Acceptance Certificate

Board Report

MECONLIMITED 11

for TRT has been issued by client. PerformanceGuaranteeTestofBoiler-1andBoiler-2havebeencompleted.PerformanceGuaranteeTestandFinalAcceptanceCertificate forotherunits likeTurboBlower, Steam Turbo Generator and BPTG areunder Progress.

� Detailed Engineering Consultancy servicesincluding designer supervision have beenprovided toSAIL/Bhilai Steel Plant tomeet therequirementofpower,processsteamandcoldBlastair, compressed air station, Power and BlowingStationalongwithTRT.Commissioningofplantand equipment of power and blowing station isunder progress.

� Consultancy services to carry out site specificstudiesandpreparationoffeasibilityreportfor20MWpSolarPVProjectofBPSCLatBokaroSteelCity is under progress.

� Consultancyservicesforinstallationof2.0MWpcapacity SolarPVProject on rooftopsof variousbuildings of SAIL/Bokaro Steel Plant and its Townshipisunderprogress.

� ConsultancyservicesforResidualLifeAssessment(RLA)/LifeExtension(LE)StudyandAssessmentReport for Boiler, Turbine, Generator & theirAuxiliaries andElectricsof3x10MWChinakuriTPPofEastern Coalfield Limited (ECL)hasbeencompleted.

� Composite Consultancy Services for DelayAnalysis, Balance work Assessment, MaterialSpecificationChangeAssessment&ReconciliationofMandatorySparesatParliProject(1x250MW)ofMaharashtra State Power Generation Co. Ltd. (MAHAGENCO),Mumbaiisunderprogress.

� DeanDayalUpadhyayGram Jyoti Yojanaworksin 24 districts along with Integrated PowerDevelopment System (IPDS) at 19 towns ofJharkhandareunderprogress.

� Outoftotal232nos.of33/11KVsub-stationsinSOUTHCO&CESUDISCOMofOPTCL66nos.arechargedandworkisinprogressinremainingsub-stations.

� IPDS&DDUGJYworksinCESUareaofOPTCL are in progress.

� Construction of Addl. / Augmentation of33/11 kV sub-stations, new 11 kV / LT lines,distribution transformers & service connectionto BPL households under Rajiv Gandhi GraminVidyutYoujna(RGGVY)schemesunderMadhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited,Bhopalareinprogress.

Oil & Gas Sector

� GAIL Gas Limited has awarded your companyEngineering&ProjectManagementConsultancy(EPMC) services for City Gas DistributionNetworkatBengaluruGA.TheabovejobincludespreparationofDFR, frontendengineeringalongwithprojectMonitoring.Thetargetforpipelayingfor the 1st, 2nd & 3rd year has been successfullyachieved. Approx. 56911 PNG connections tilldatehavealreadybeeninstalledinBangalorecity.

� Mangalore Refinery and Petrochemicals Limited (MRPL) hasentrustedyourcompanyasconsultantfor installation of Flare Gas Recovery System(FGRS) atMRPL area.The FGRS is successfullycommissioned with both the Liquid RingCompressors are in continuous operation.

� Your company is providing EPMC services toVaranasiCityGasDistribution(CGD)ProjectofGAIL (India) Ltd.comprisingofCityGateStation(CGS)Varanasi,anaturalgas-basedcrematoriumatHarishchandraGhat,DieselLocomotiveWorks(DLW) and Varanasi’s 1st CNG station (KeshavR.O.).Theprojectisunderexecution.


MECON

� ThePhulpur-Varanasi section (30” x 100 km) ofJHBDPL(Jagdishpur–Haldia–Bokaro-Dhamra

Pipeline,popularlyknownasPradhan Mantri Urja Ganga) Project (Ph-I) ofGAIL (India) Ltd. hasbeenchargedwithgas.Withthis,naturalgashasnowarrivedatthedoorstepofVaranasi.MECONtakesprideinbeingpartofthisprestigiousprojectasEPMC.

� GAIL started supply of environment-friendlyPNG to 255 houses in Nalco Nagar located atChandrasekharpurareaofBhubaneshwar.

Hon’ble Minister for Petroleum & Natural Gasand Skill Development & Entrepreneurship,Govt. of India expressed happiness for early

commencementofthis1stphaseofsupplyofPNGinBhubaneswarYour company is proud to be rendering EPMCservices for the project and helping householdsmovetowardsgreener&saferenergy.

� Hindustan Petroleum Corporation Ltd.(HPCL)hasappointedyourcompanyasEPMCconsultantforsettingupPOLDepot(Totalcapacity5000kl)atLeh(J&K)forhandlingMotorSpirit,HighSpeedDiesel,Skewedkeroseneoil,AviationTurbineFuelstorage.

6Nosundergroundproducttanksof200klcapacityatHPCL’sLehterminalhavebeencommissioned.Leh terminal of HPCL is one of the world’s highest POL terminal (Approx. 11000 ft above MSL) and your company is proud to render its services as EPMC for this strategic project.

� Your company is providing EPMC services toGAIL (India) Ltd. toset-upanintegrated2x20klLNGsatelliteterminalatBhubaneshwar.ItwillbeafirstofitskindprojectinIndiaandisaimedatsupplyinguninterruptedgastillcommissioningofnatural gas pipeline. The project will pave the path for clean energyin the form of PNG/ CNG/ R-LNG to variousdomestic as well as commercial consumers in Bhubaneshwar.

CurrentlytheconstructionofthesatelliteLNGterminalisinfullswing.

Board Report

MECONLIMITED 13

Infrastructure Sector � YourcompanyhascompletedpreparationofDPR

foraroadbridgeonKatriRiverforBharat Coking Coal Limited inDhanbaddistrictofJharkhand.

� LANCO Infratech Limited (LITL) hasawarded your company Engineering & ProjectManagement Consultancy (EPMC) services todevelop a Residential colony for Rehabilitation& Resettlement (R&R) of the Project AffectedFamilies(PAF)atTasraminesinDhanbaddistrictofJharkhand.ThisR&RColonyshallbedevelopedintwophases.2000PAFswillberehabilitated inPhase-I followedby8000PAFs inPhase-II.DPRpreparation is in progress.

� Your company has been providing IndependentEngineering services to Visakhapatnam Port Trust (VPT) for Up-gradation of Iron OreHandlingProject.TheProjectexecutionhasbeencompletedsuccessfullyandtheplantisnowundercommercial operation.

� Yourcompanyhassuccessfullycompletedtechnicalfeasibility study for essentiality of a CaptivePort proposed by JSW Steel Ltd for Industrial Promotion and Investment Corporation of Odisha Ltd. (IPICOL),Bhubaneshwar.

� Your company has successfully completedFeasibilityReport&Tenderingactivities forIronOrehandlingPlant(IOHP)withMechanizedCoalHandlingPlant(MCHP)forParadip Port Trust.

� Bhabha Atomic Research Centre, Mumbai hasretainedyourcompanyasenvironmentalconsultantfor their proposed R&D centre Phase-II facilitiesalongwithresidentialtownshipatVizag,AP.

� Hindustan Aeronautics Limited, Bangaloreretained your company as Consultant to render Consultancy services for Preparation of MasterPlan and Detailed Project Report includingenvironmental clearance for their proposed newHelicopter manufacturing facilities along withtownship in an area of 615 acres at Tumakuru,Karnataka. The Environmental Clearance hasbeenobtainedinasinglesittingfromMoEF&CCandtheDPRhasbeensubmittedtoClient.

� Your company has been retained by Karnataka Industrial Area Development Board, Karnataka as an environmental consultant for theirproposed area development projects at Immavu,Thandya, Balkundi andKanagalla.TheTerms ofReference (ToR) have been obtained from StateEnvironmentalImpactAssessmentAuthorityandMoEF&CCtopreparedetailedEIA/EMPreport.

� Bhabha Atomic Research Centre, Mumbai hasretainedyourcompanytoprepareEnvironmentalImpact Assessment Report for their proposed300MWeAdvancedHeavyWaterReactor alongwithresidentialtownshipatTarapur.TheAHWRisuniqueinnaturewhichwillhelpournationtoreachself-sustainability innuclear fuel for futurepower generation. The ToR has been obtainedfrom MoEF&CC to prepare detailed EIA/EMPreport.

Your Company is serving a large number of clientsin thePublic andPrivate Sectors. Someof themajorclients inPublicSector includeSAIL,GAIL,NMDC,ESIC, NSPCL,MAHAGENCO,Ministry of AYUSH,ISRO,HAL,MRPL,HEC,BARC,HINCOL,APMDCL,JBVNL, 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, PFC, CMWSSB, UCIL, BGL,APPGCL, IOCL, HPGCL, ONGC, CPCB, KPCL, VPT, KPT, PPT, GGL, IGL, BGL, TNGCL, DVC,MSTC, NHPC, NMPT, IDCOL, IREL, BARC, SBI


MECON

besidesMinistryofPowe000r,Govt.ofIndia,theStateElectricityBoardsinJharkhand,WestBengal,MadhyaPradesh, 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,IL&FS,TOPWORTH,ADANI,MSPL,IIL,SLR,etc.aresomeofthemajorclientsintheprivatesector.

In addition to above, some of the major clients towhom your company has been rendering servicesduring thisyear includeProjectSeabird,CCL,OMC,PFCCL, LANCO, HPCL, SHAR, Oil Inida, OPTCL,Assam State Housing Board, IOCL, BPCL, NALCO,NLC, ECL,UCIL,NPCIL, JSW, PetronetMHB, KICMetaliks, JSPL, Brila Copper, Electrosteel, etc. TheCompanyisalsoprovidingservicestoDefenceSector.

AN ISO 9001:2008ISPS COMPLIANT PORT

Business procurement in the area of EngineeringConsultancy & PMC services was ₹343.29 Crore inpreviousyearand₹533.27Croreduringthisfinancialyear. In Supply / Turnkey projects it was ₹1075.36Croreinpreviousyearand₹470.17Croreduringthis year.

INDIAN ARMY

ETA - ZUMA GROUP

Board Report

MECONLIMITED 15

2.0 BUSINESS DIVERSIFICATION

The strategic move to diversify and foray into twoother stragic businesses viz. Energy (Oil&Gas) andInfrastructurehasstartedshowingpositiveresults.Theculminationofthelastfinancialyearatprofitablenoteneutralizinglossesofprevious2yearsdespitesubduedperformanceinmetalsectorisatestimonyofsuccessof thismove.Thecompanynowhas strengthened itspresence in Oil & Gas sector and is well positionedto take it up tonext higher level assignments in thissector.Withvisiblesignsofrecoveryinitstraditionalstronghold areas of Design, Engineering and PMCin steel sector, company is on lookout for breakinggrounds in new emerging opportunities in non-conventional areas like O&M of steel plants, energyefficiency & performance improvement projects ofsteel plant units and transaction advisory services inmining and allied sectors.

During this fiscal year, business procurement fromthe diversified sectors (other than Metals) has beensignificant which is clearly reflected in overall orderbooking inNon-Metal sectors (79.43%) outweighingthe order booking in Metal sector (20.57%). InEngineering and Consultancy, the Company’s orderbooking is 61.75% (previous year 71.83%) in Non-Metal sectors and 38.25% (previous year 28.17%) inMetalsector.Incaseofsupply/turnkeyprojects,itis99.49%(previousyear49.88%)inthediversifiedsectorsand0.51%(previousyear50.12%)inMetalsSector.

0

100

200

300

400

500

2013-14 2014-15 2015-16 2016-17 2017-18

in ̀

serorC

Year

Business Procured (Consultancy)Metal Non-Metal

0100200300400500600

2013-14 2014-15 2015-16 2016-17 2017-18

in ̀

serorC

Year

Business Procured (Supply)Metal Non-Metal

38.25%38.76%

22.98%

SBU wise Business Procured (Consultancy)

Metal Energy Infastructure

3.0 MANAGEMENT INITIATIVES

Company’s financial fundamentals have turned forbetter due to relentless strategic imitative taken bymanagementlikeholdingontodiversificationstrategy,reducingstickyoutstandingswitholdclients,balancedredeployment of manpower as per profitability ofbusinessportfolioandsqueezingbusinessopportunitiesfromitstraditionalbusinessareas.

With the upturn in business outlook in global steelmarket stimulated by reduction in prices of key rawmaterialandalmostsynchronousupturninEuropeanEconomy has imparted new impetus to demandgrowth of steel globally and would help fuel exportledinvestmentsentimentsinsteelsectorinSouthEastAsia andMiddleEast countries including India.Thiscan usher new opportunities for MECON in thesecountries.ManagementwouldchartoutstrategiesforcapturingtheseGlobalbusinessopportunities.

Managementwould continue to endeavour enlargingthemarketshareandcapitalizeonexistingcapabilitytomakeinroadsintonewareasandtakingalongsuitablestrategicpartnerstoregisteraformidablepresenceinallitsSBU’sintheforthcomingfinancialyear.

4.0 MOU WITH MINISTRY OF STEEL ON PERFORMANCE

Like inthepreviousyears,yourCompanyhassignedaMoUwithMinistry of Steel for the Financial Year2017-18.TheCompanyachieved“Good”ratingintheyear2016-17andisexpectedtoachieve“Good”ratingin2017-18.

5.0 ISO 9001:2015 CERTIFICATION

Your Company has recently successfully migratedto ISO 9001:2015 Standards from ISO 9001:2008standards.ThecertificatehasbeenawardedbyM/sTÜVNORD.ThescopeofCompany’scertificationincludesConsultancy, Design & Engineering, Procurementof Plant & Equipment, Inspection, Construction &ProjectManagementServicesandErectionofTurnkeyProjects. The certification audit by TÜV has been


MECON

completedinNovember2017andCompany’sQMShasbeencertifiedforISO9001:2015forfurtherperiodofthreeyearswithvaliditytill29.01.2021.

The surveillance audit of Vigilance function wasconducted by TUV inOctober 2017.With noNon-Conformity observed by TUV the ISO 9001:2008certificate for Vigilance function of the Company isrevalidateduptoSeptember2019.

6.0 INDIAN ASSIGNMENTS

Your company has procured following major workordersduring2017-18:

Metals Sector

� Design&Engineering services forBlastFurnace# 3 Upgradation Project of JSW Steel Ltd., Vijayanagar.

� DetailedEngineering&Consultancyservices forPelletPlantfor10MtpaProjectatJSW Steel Ltd., Dolvi.

� Consultancy & Engineering services forRevamping of Primary & Secondary DedustingSystem for SMS#1 and Revamping of PrimaryDedustingSystemforSMS#2atVijayanagarWorksforJSW Steel Ltd.,Mumbai.

� DetailedEngineering&Consultancyservices forUpgradation of 250 m3 Blast Furnace for Visa Steel Ltd.,Odisha.

� Consultancy services for installation of AlloyWireRodManufacturingFacilities in Smelter ofNALCO, Angul for National Aluminium Co. Ltd.,Bhubaneswar.

� ConsultancyServicesforEstablishingClosedDieForging Facility andHeat Treatment Facility forMishra Dhatu Nigam Ltd., Hyderabad.

� WorksContractforFullReliningJobofOneLimeKilnSAIL/Durgapur Steel Plant,Durgapur.

� DetailedEngineering&Consultancyservices forinstallation of New Pickling Line cum TandemCold Mill (PLTCM) at Tarapur Works for JSW Steel Coated Products Ltd.,Mumbai.

� Consultancy & Supervision services forDebottlenecking of Reagent Handling Systemfor UCIL Tummalpalle Project for Uranium Corporation of India Ltd., Singhbum (E),Jharkhand.

� Preparation of EIA/EMP report incorporatingChanges in Project Configuration forModernization-cum-Expansion of BSP 7.0MtpaalongwithCaptivePowerPlantforobtainingECfrom MoEF&CC for SAIL/Bhilai Steel Plant,

Bhilai.

� DetailedEngineering&Consultancyservices forNew SGP of Blast Furnace#1 of JSW Steel Ltd., Dolvi.

� DetailedEngineering&Consultancyservices forPulverised Coal Injection (PCI) System for KIC Metaliks Ltd.,Kolkata.

� Change Order for Detailed Engineering &ConsultancyservicesforExpansionofSteelPlantto7.0MtpaofSAIL/Bhilai Steel Plant,Bhilai.

� Consultancy services for Crushing & ScreeningPlant and Evacuation Facilities for 8.5 MtpaProject at Gandhamardan-B Mining Lease ofOdisha Mining Corporation Ltd.,Bhubaneswar.

� ConsultancyservicesforpreparationofGeologicalReport, Mining Plan, obtaining Environment& Forest Clearances, obtaining all StatutoryClearances, Land Acquisition etc. in respectof Saharpur-Jamarpani Coal Block in DumkaDistrict,JharkhandforPFC Consulting Ltd., New Delhi.

� Preparation, submission and obtainingApprovalof the Review ofMining Plan /Modification toMining Plan with PMCP for 4 Mining LeasesnamelySukrangi,Tiringpahar,BPJ&NishikhalofOdisha Mining Corporation Ltd.,Bhubaneswar.

� Review & Modification of Mining Plans of 4Mining Leases (i) Khandband Iron Ore Mine(ii) Mahapartbat/Unchaballi Iron Ore MiningLease (iii) Gandhamardan A Iron Ore Mine &(iv)BansapaniIronOreMineofOdisha Mining Corporation Ltd.,Bhubaneswar.

� Preparation of Wild Life Conservation Plan ofMadanpurSouthCoalBlockforAndhra Pradesh Mineral Development Corporation Ltd., Hyderabad.

� ComprehensiveFireAuditofallProductionUnitsSmelter, CPP, Mines & Refinery to assess theadequacy of the existing Fire Protection Systemand to provide RemedialMeasures forNational Aluminium Co. Ltd.,Bhubaneswar.

� Preparation of EIA/EMP Studies for obtainingEnvironmental Clearance for Madanpur SouthCoal Block for Andhra Pradesh Mineral Development Corporation Ltd., Hyderabad.

� Preparation of Techno-Economic FeasibilityReport(TEFR)forinstallationofTurboBlowerinMBF#1forTata Metaliks Ltd.,Kharagpur.

� Consultancy services & preparation of Techno-Economic Feasibility Report (TEFR) for

Board Report

MECONLIMITED 17

Replacement of existing Prime Mover fromElectricMotortoSteamTurbineinBF#1ofJindal Steel & Power Ltd.,Angul.

� PreparationofEIA/EMPreport forSuilyariCoalBlock locatedatSingrauliDist.,MadhyaPradeshfor Andhra Pradesh Mineral Development Corporation Ltd.,Vijayawada.

� Design & Engineering services for Modificationof Pellet Bunkers installation of New VibratingScreenforJSW Steel Ltd.

� PreparationofEIA/EMPreportfor6.0MtpaIronOre Processing (Beneficiation) Plant atKirandulandExtensionofNMDC’sSlurryPipelineSystemfrom Kirandul to Bacheli in Chhattisgarh forNMDC Limited, Hyderabad.

� PreparationofMiningPlan includingPMCP forIron Ore and Manganese Ore and obtaining itsapprovalfromIBMforKIOCL Ltd.,Bangalore.

� Final Mine Closure Plan for Three LimestoneMining Lease viz.Ghaghra,Gorgaon and Sariyaunder Bhawanathpur Limestone Mine of SAIL/Raw Materials Division.

Energy Sector

� Engineering&ProjectManagementConsultancy(EPMC) services for Development of CGDNetwork in Varanasi, Cuttack, Bhubaneswar,Ranchi, JamshedpurandPatnaforGAIL (India) Ltd., Noida.

� Engineering&ProjectManagementConsultancy(EPMC) services for Vijayawada DharamapuriPipeline Project - Terminal (Schedule-2) forHindustan Petroleum Corpn. Ltd.

� Engineering&ProjectManagementConsultancyServicesforAuraiyaPhulpurNaturalGasPipeline(APPL)ProjectforGAIL (India) Ltd., Noida.

� Engineering, Procurement and Construction Management(EPCM)ServicesforConstructionofGasPipelinefromBaghjantoCGGS,Madhuban,Dibrugarh District, Assam for Oil India Ltd., Assam.

� ExtensionofworkforResidualWorksleftoutforPMC services towards Construction of 232 nos.of33/11KVSub-stationswithassociatedLinesofODSSP,fortheperiodfromAugust,2017toMarch,2018 within the jurisdiction of DISCOM-CESU& SOUTHCO for Odisha Power Transmission Corporation Ltd.,Bhubaneswar.

� Engineering&ProjectManagementConsultancyservices for Development of CGD Network inSonipat,Meerut &Devas CGD Project-Phase-II

forGAIL Gas Limited, Noida.

� Project Management & Consultancy (PMC)services for the CGD Project in East & WestGodavari District of Andhra Pradesh for Godavari Gas Pvt. Ltd.,AndhraPradesh.

� Feasibility Study & Detailed EngineeringConsultancy services for Conversion from TopLoadingtoBottomLoadingFacilityat9LocationsforHindustan Petroleum Corpn. Ltd.,Mumbai.

� Project Management services for Deen DayalUpadhyay Gram Jyoti Yojana (DDUGJY)& Integrated Power Development Scheme(IPDS)Works in CESUArea for Odisha Power Transmission Corpn. Ltd.,Bhubaneswar.

� Engineering&ProjectManagementConsultancy(EPMC)servicesforConstructionofNewDepotatHissarforHindustan Petroleum Corpn. Ltd., Mumbai.

� Project Management Consultancy services forDevelopment of CGD Network in the GA ofYamunanagarforBharat Petroleum Corpn. Ltd., NewDelhi.

� Project Management Consultancy services forDevelopment of CGD Network in the GA ofSaharanpur for Bharat Petroleum Corpn. Ltd., NewDelhi.

� Project Management Consultancy services forDevelopment of CGD Network in the GA ofRupnagar for Bharat Petroleum Corporation Ltd.,NewDelhi.

� Engineering&ProjectManagementConsultancy(EPMC) services for preparation of TenderDocument, Bid Process Management for theReplacementandRevampingofPipelineNetworkatOilJettiesarea,KandlaforKandla Port Trust, Gujarat.

� Engineering&ProjectManagementConsultancyservicesforDevelopmentofCGDNetworkinTajTrapeziumZone(TTZ)forPhase-IIforGAIL Gas Limited, Noida.

� Engineering&ProjectManagementConsultancy(EPMC) services for Meerut IRD RevampingProject for Hindustan Petroleum Corporation Ltd.,Mumbai.

� Project Management Consultancy services forTie-in Connectivity fromONGCMadanamGasSourcetoGAIL’sCauveryBasinNetworkthroughInjection at SV-2 (Memathur) for GAIL (India) Ltd., Noida.

� Consultancy services to carry out Study and


MECON

Engineering for adhering to MOEF-Norms inNLC’sFourexistingPowerStationsforNLC India Limited,Neyveli.

� Engineering&ProjectManagementConsultancy(EPMC)servicesforLastMileConnectivitytoSt.Gobain,JagadiaforGAIL (India) Ltd., Noida.

� Engineering&ProjectManagementConsultancyservices for Sonipat, Meerut and Dewas CGDProjects(Phase-II)foraperiodof07MonthsforGAIL Gas Ltd., Noida.

� ProjectManagementConsultancyservices for66KVSub-StationofHindustan Petroleum Corpn. Ltd.

� RLA/LEStudy&ConditionAssessmentReportforBoilers, Turbines,Generators& theirAuxiliariesand Electrics of 3x10 MW Chinakuri TPP ofEastern Coalfields Ltd.,WestBengal.

� ProjectManagementConsultancyservicesforLastMileConnectivity(LMC)toGNVFCL,Bharuch,GujaratforGAIL (India) Ltd., Noida.

� Engineering&ProjectManagementConsultancy(EPMC)servicesfor12”PipelineModificationjobin JLPL-NCR (Rajasthan,Haryana,Delhi&UP)forGAIL (India) Ltd.

� Engineering&ProjectManagementConsultancy(EPMC) services for Kota CGD Project forRajasthan State Gas Ltd.,Jaipur.

� Engineering, Procurement and Construction Management (EPCM) services for Constructionof Displacement Water Tanks at Mangalore,ReplacementofexistingTurbineFlowMeterwithMassFlowMeter,Supply&InstallationofDoubleBlockBleedingValveatHassanandUpgradationofexistingSCADASystemofPetronet MHB Ltd., Bangalore.

� Engineering&ProjectManagementConsultancyservices for various Critical Jobs under GAIL,AgartalaRegionforGAIL (India) Ltd.,Agartala.

� Engineering&ProjectManagementConsultancy(EPMC) services for National Capital Region(Operation & Maintenance) for GAIL (India) Ltd., Noida.

� ConsultancyServicesforPreliminaryWorksof20MWpSolarPVProjectofBPSCLatBSL,BokaroforBokaro Power Supply Co. (P) Ltd.,Boakro.

� Engineering&ProjectManagementConsultancyservices for Re-routing of 24” x 32 Km PanvelUranPipeline(PUPL)forGAIL (India) Ltd.,NaviMumbai.

� Consultancy services forQRA andHazop StudyforthreeCNGStationsin“DesignwithEquipmentonRCCCanopy”ConceptforIndraprastha Gas Ltd.,NewDelhi.

� ConsultancyservicesforRLAandR&MWorkofRawCoalBunkersofUnit #13,BTPS,Obra forUPRVUNL, Obra Thermal Power Station,Obra.

� StudyreportforRegroupingofScrap,Unserviceable/ServiceableMaterialsofOHPCatdifferentUnitsfor Orissa Hydro Power Corporation Ltd., Bhubaneswar.

� Engineering&ProjectManagementConsultancyservices for Replacement of Variable FrequencyDrive (VFD) installed at Jamnagar,AbuRoad&NasirabadPumpingStationsalongJLPLPipelineforGAIL (India) Ltd.,Jaipur

Infrastructure Sector / Other Engineering

� ExecutingAgency forEstablishmentofAll IndiaInstituteofHomeopathy,Narela,Delhi forGovt.ofIndia,Ministry of AYUSH,NewDelhi.

� Executing Agency for Construction of Multi-storeyed Office cum Commercial Complex atGuwahati, Assam for Assam State Housing Board,Guwahati.

� ExecutingAgencyforConstructionofNewWaterTreatment Plant (WTP) / Sewage TreatmentPlant (STP) /DomesticEffluentTreatmentPlant(DETP)andUpgradation/RenovationofexistingWTP/STP/DETPindifferentAreasofCentral Coalfields Ltd.,Ranchi.

� Design & Supervision Consultant for Dockyardand Fleet Base Buildings Package (DC-DY &FBB)forProjectSeabirdPhase-IIAatNavalBase,KarwarforProject Seabird,NewDelhi.

� Detailed Engineering & Project ManagementConsultancy services for Development ofRehabilitation & Resettlement (R&R) Colony ofAffectedFamiliesat JhariaCoalfield inDhanbadDistrictforLANCO Infratech Ltd.,Gurgaon.

� Design Engineering, ConstructionManagement,Supervision and Commissioning of Buildings &InfrastructureFacilitiesatIOCLTownship&CISFColonyofParadipRefineryatParadip,OdishaforIndian Oil Corporation Ltd.,Odisha.

� ConsultancyforTechnicalServices(Engineering,TenderDocument Preparation, etc.) for SPROB,Augmentation Facilities for Indian Space Research Organisation,Sriharikota.

� Consultancy& ProjectManagement services forConnectivityofIOHPtoMCHPforParadip Port

Board Report

MECONLIMITED 19

Trust, Odisha.

� DesignEngineering&ConstructionManagementservices forNewMechanicalWorkshopSetup&AssociatedSystematC2C3PlantofGAIL (India) Ltd.,Vijaipur.

� EIA and EC & CRZ Clearance for Away FromReactor (AFR) Spent Fuel Storage Facility forKKNPP1&2andNSDFforKKSiteforNuclear Power Corporation of India Ltd.,Mumbai.

� MonitoringandAnalysisofAmbientAirQuality,EffluentQuality&StackEmissionofBokaroSteelPlant&CityforSAIL/Bokaro Steel Plant,Bokaro.

� EIA/EMP for Replacement and Revamping ofPipeline Network at Oil Jetty area, Kandla ofDeendayal Port Trust,Kutch,Gujarat.

� Rapid EIA/EMP Report of FFF-INRP, TarapurProject Site and assisting the User Departmentto obtain MoEF Clearance for Bhabha Atomic Research Centre, Tarapur.

7.0 FOREIGN ASSIGNMENTS

Overseas assignment bagged by your company ishighlightedbelow:

� Geological and Quality Evaluation report forSelectionofSuitableIronOreConcessionAreaforPremium Steel & Mines Ltd., Nigeria.

8.0 FUTURE BUSINESS VISION

Theperceptible improvement in global steel scenarioandbackedupwithcognizableperformanceofEnergyand Infrastructure business verticals, your companyis now poised for scaling new heights. The futurebusinessvisionentailsgrabbingupanyopportunitiesthrown by resurgentmetal sector and go alongwithsuitable partnerships to capitalize its presence in itsremainingtwostrategicbusinessverticals.Inaddition,the changing business landscape is throwing openopportunitiesinvirginareaslikeO&Mofsteelplants,performance improvement of existing units, energyefficiency, transaction advisory services, mines &minerals, etc. which the management is weighingseriously.GrowingenvironmentalconcernsareopeningupconsiderableprospectsinFGDareaandsolarpowerin power sector and can be turned into a lucrativebusiness opportunity with suitable partnership.Thusthe forthcoming financial year would be throwingopportunitiesinexistingaswellasinnon-conventionalareaswhichmanagementisfullygeareduptoavail.

9.0 FINANCIAL RESULTS

The extract of Annual Return for the period underreview,isannexedasAppendix- I.

Thefinancialhighlightfortheperiodunderreviewisasunder:

Particulars(₹ In Lakh)

2017-18 2016-17*

9.1 Material changes andcommitment,ifany,affectingthefinancial positionwhichhas occurred between theendoffinancialyeartowhichthe financial statementsrelate and the date of thereport.

NIL Nil

9.2 The amount, if any whichis proposes to carry to any reserve

OpeningBalance

Additionduringtheyear

Utilised/Reversedduringtheyear

10,596.01

5800.07

133.88

21,156.91

(7305.33)

(3255.57)

ClosingBalance 16529.96 10596.01

9.3 Particulars of loans,guarantees or investmentsunder Section 186 of theCompaniesAct,2013

519.52# 519.52#

9.4 Particulars of contracts orarrangements with relatedpartyreferredundersection188(1) in Form AOC-2.(Enclosed as Annexure- A)

Nil Nil

*The company has adopted Indian Accounting Standard ‘Ind AS’ from1st April, 2017 and accordingly, financials for FY 2016-17 is restated inaccordancewithIndAS,asapplicable.#Representstheinvestment(Gross)madebytheCompany.

0100200300400500

389.

92

317.

28

342.

93

445.

57

Turnover

Year

in `

Cro

roe


MECON

10.0 DIVIDEND

Your Company has recommended dividend of₹1,027.19 Lakh on Equity Share Capital for theFinancialYear2017-18.

10.1 CUMULATIVE DIVIDEND & TAX PAID

Yourcompanywhichhadpaidupcapitalof₹4,013.84lakh (previous year ₹4,013.84 lakh) including BonusSharesworth₹40.31lakh,haspaidcumulativedividendincludingtax(Equity&Preference)of₹6,836.59lakhtillFY2016-17andhaverecommended₹1,027.19LakhtowardsdividendonEquitySharesforFY2017-18.Thecumulativeincometaxtotheexchequeramountingto₹36,410.21lakhhasbeenpaid/providedtillFY2017-18.

11.0 EARNING PER EMPLOYEE

OperatingTurnoverperemployeeperyearisasfollows:

18.75 11.35 15.9923.46

05

1015202530

2014-15 2015-16 2016-17 2017-18

In `

Lakh

Year

OPERATING TURNOVER PER EMPLOYEE

12.0 RESEARCH & DEVELOPMENT

R&Dplaysanimportantroleintheinnovationprocess.R&Dresultsinvaluableinventions,ideasanddesignswhichcanbeasourceofpotentialvaluewhenitcomesto gaining competitive advantage. Company’s R&Dactivitiesarecarefullyplannedsothatallinventionsarepatentedtoprotectthesevaluableassets.

PresentlyexperimentalR&DactivitiesarebeingcarriedoutinSteelSector.YourCompanymostlyundertakesApplied Research and ExperimentalDevelopment inthecoreareaofbusinesssuchasIronandSteelaswellasfocusedareasofnationalimportancesuchasDefence,Environment etc. In recent years, Your Companyalso undertakes R&D activities in collaborationwithDefence Research & Development Organisation(DRDO), Department of Science & Technology(DST), Ministry of Environment (MoE), Ministryof Steel and private sectors. Collaborative efforts inR&DwithacademicinstitutionsandIndustrialhouseare undertaken by R&D Division to strengthen theresearchpotentialandapplicationdomain.

The R&D of your Company is recognized byDepartment of Scientific and Industrial Research(DSIR),Govt.ofIndiaandthereorganizationisvalid

forthreeyears.(upto31/03/2019).

Ongoing Project

� Development of Torpedo Ladle Car monitoring system using Infrared Imaging.

Inorder toachieveminimumfailureofTorpedoladles and to increase its average life, the bestsolution is onlinethermographyusingautomationto locate thehotspot and toknow thehistoryofthespotformaintainingitsdatabaseatrefectorymaintenance management. The project is beingimplementedatRSP,Rourkela.

This project is funded byMinistry of Steel with₹134.50 lakh out ofwhich ₹76.05 lakh has beenspentuptoF.Y2017-18.

Projects Completed

� Localized Heat Treatment of Steel Blank for Automotive application with R&D division TATA Steel

This project is to develop Lab scale tailormadeblankwithdifferentcombinationofmicrostructureandmechanicalpropertiestoproduceautomotivecomponents using localized heat treatmenttechnique so that complex heat treated sectionscanbeproducedduringthisspecialprocesswithinasingleblank.ThisisacollaborativeprojectwithTATASteel.JointPatenthasbeenfiled.

Board Report

MECONLIMITED 21

� Development of New suspension system for Basic Oxygen Furnace vessel.

Based on in-house expertise of design andengineering and exposure to BOF converterdesign and operation, your Company developedtheinnovativemechanicaldesignoftheconverter.Patenthasbeenfiled.

Patents Sealed:

YourCompanyhas got three (3)Patent rights in thefield of Blast Furnace, NOx Monitoring System andAutomobilefiltersforcoldregion.

Patents under process :

During the year yourCompanyhas filed eleven (11)patent applications with the Patent Authority indifferent areas.

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 energyefficienttechnologiesinironandsteelplantsofCPSEs.

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,during2017-18,whicharesummarisedbelow:

� Iron Making

¾ Implementation of Waste Heat RecoverySystem&PulverizedCoalInjectionSystemat250m3MBFofKICMetaliks,Durgapur.

¾ Commissioned BF # 8 (4060m3) at SAIL-BSPwhichhasbeenprovidedwithfollowingenergysavingsmeasures:

� ExtensiveuseofVVVFdrives

� ProvisionofPCI

� TRTforgenerationof14MW

� Electrical

¾ Use of energy efficient DistributionTransformers in the present and futureProjectstoreduceIronandCopperlossinthesystem.

¾ Use of Harmonic filters, Reactive Power

Compensation equipment and PhaseBalancing equipment as per application toreduceheating&lossesinPowerDistributionNetwork.

¾ Use of energy saving Variable FrequencyDrives&LCIdrivesforhighcapacitymotorsanduseofregenerativedrivesforCranesandRollingMillapplications.

¾ UseofenergyefficientIlluminationsystemintheongoingandfutureprojectsbyusingLEDlamps, Mirror optics luminaries, Electronicballast, Occupancy sensors in Commercialbuildings, Timer based area Illuminationsystem etc to reduce power consumption.

¾ Use of Roof Top Solar Photo Voltaic (SPV)power generation technology to conserveenergy by reducing dependency on conventionalenergysources.

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 ₹13.70 lakh ForeignExchangeduringtheyearunderreview.TheexpenditureinForeignExchange remitted /actually spentduringtheyearis₹410.11lakhasperdetailsgivenbelow.

Particulars (₹ in Lakh)Professional&ConsultationFees 212.32Othermatters 197.79

Total 410.11

15.0 HUMAN RESOURCE DEVELOPMENT

In a knowledge-based organization, in order to havecompetitiveadvantage,theorganizationalcompetencei.e.theHumanCapitalneedstobeuniqueinnature.AtyourCompany,developingandsustainingacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise,byconstantlyupgradingtheirknowledgeandskillshasalwaysbeenManagement’stopmostpriority.Focus is laidon acquiringnew skills and sharpeningexisting ones, which leads to better performance,increases productivity and evolves our employees asbetter leaders.


MECON

To transform your Company into a learningorganization and encourage a culture of continualdevelopment amongst employees, apart fromconductingregulartrainingsontechnical,skillrelatedand soft skill, based on Training Need Analysisand Organizational Requirement, an initiative wastaken to depute our executives to variousCentres ofExcellence like IITs, IIMs,NITs, ICAIs, etc, focusingonlatestTechnologicalAdvancementsanddevelopingLeadership Effectiveness. Moreover, variousKnowledge Sharing sessions have been conductedthroughconcerneddomainexperts.Managementhasachieved1787Mandaysoftraininganddevelopment(Technology–612Mandays,Skill related–649MandaysandSoftSkill–531Mandays)asagainstthetargetof1300Mandaysfixedforthisfinancialyear.

Apart from this, to facilitate holistic developmentand increase productivity, employee engagementactivities such as Health Awareness Programs, Quizcompetitions, Debate competitions, Retirement andInvestmentPlanning, etc.,were organizedon regularbasis. Management Development Assessment wasalso conducted for executives at E1, E3 and E5 levelwithregardtopromotion.Toencouragephysicalandemotional well-being amongst our employees, Yogaclasses were also initiated for employees and theirspouses,incollaborationwithSportsClub,MECON.

16.0 PERSONNEL & WELFARE

EmployeesstrengthofyourCompanyattheendoftheyear i.e., as on31.03.2018was 1315.Outof the totalstrengthof1315,250belongtoSC,131belongtheSTcategories&10belongtoPWDcategory.Outofthetotalstrengthof1315employees,135arefemaleemployees.

16.1 Sexual Harassment of women at workplace (Prevention, Protection and Redressal Act, 2013)

Number of Cases filed Number of cases disposed.

1 1

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 Executiveemployees. 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, 2018

SC ST PWD

No % No % No %

A 1163 226 19.43 71 6.10 6 0.52

B 63 8 12.70 23 36.51 0 0

C 89 16 17.98 37 41.57 4 4.49

Total 1315 250 19.01 131 9.96 10 0.76

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.

Board Report

MECONLIMITED 23

19.0 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY DEVELOPMENT (CSR&SD)

As provided under Section 135 read with ScheduleVII to the Companies Act, 2013 your Company hascarriedoutCSRactivitiesmainlyfocusedonSanitation(Swachh Bharat Abhiyan), healthcare , education,skill development & livelihood, social welfare, ruraldevelopment, etc., out of carried over fund from theF.Y2016-17.ThedetailsareenclosedvideAppendix-II.

20.0 OFFICIAL LANGUAGE POLICY (USE OF RAJBHASHA)

YourCompanyiseffectivelyimplementingtheOfficialLanguagePolicyofGovt.ofIndia in itsofficialwork.TheCompanyisalsomakingallouteffortstoachievethe targetsfixed in theAnnualProgramme issuedbyRajbhashaVibhag,MinistryofHomeAffairs,Govt.ofIndia.For thispurpose, there isanOfficialLanguageImplementationCommitteeunder theChairmanshipofCMD.Hindiworkshopsarebeingorganisedfortheemployees.YourCompanyisanimportantmemberofTownOfficial Language Implementation Committee,Ranchiandactivelyparticipatesinalltheprogrammes.

A condensed Translation Training Programme wasconducted from 10th to 14th July, 2017 at Company’sHeadOffice, Ranchi inwhich our employees aswellas the employees of the member offices of TownOfficialLanguageImplementationCommittee,Ranchiparticipated. This Translation Training ProgrammewasorganisedinassociationwithCentralTranslationBrueau, New Delhi, Dept. of Official Language,MinistryofHomeAffairs,Govt.ofIndia.

The Documentation & Evidence Sub-committee ofCommitteeofParliamentonOfficialLanguage,Govt.of IndiareviewedtheprogressiveuseofHindiatourBengaluruOfficeon4thSeptember,2017,DelhiOfficeon 22nd September, 2017 and at ourVisakhapattnamOfficeon24thJanuary,2018.JointDirector(Rajbhasha),Ministry of Steel, Govt. of India reviewed theprogressiveuseofHindiatourBhilaiSiteOfficeon22nd November,2017.

“Hindi Pakhwara” was observed in Company’s atHead Office and all the site offices of the companyfrom 14.09.2017 to 28.09.2017. On this occasion allemployeestookapledgetoincreaseuseofHindiintheirdaytodayofficialwork.Duringthe“HindiPakhwara”competitionsofvariousnaturewerealsoorganizedatHeadOfficeandotherofficesoftheCompany.AspecialHindi workshop and one Rajbhasha symposium on“UnicodekejariyeHindimeKam-Kaj”wereorganisedduringtheHindiPakhwara.

HindiHouseMagazine - “MECONBHARATI” fromHead Office and “MECON DARPAN” from ourDelhi Office is published annually. These magazinesprovidesaplatformtoEmployeesforcreativewritinginTechnicalfieldinHindi.

21.0 VIGILANCE ACTIVITIES

TheVigilance set up of the Company is functioningunderShriUpkarKumarKedia, ITS,CVO,MECON(FullTime)whotookchargeon30.10.2017.CVO,oftheCompanyprovidesalinkbetweentheorganizationandtheAdministrativeMinistry,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 system &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 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.

Submission of Annual Property Returns has beenmadeonline in theCompany andAPRs for the year2017 have been submitted by the employees and itsdatabase is maintained and is continuously scrutinized and monitored.


MECON

Integrity Pact (IP) is functional in your Company since 2007 under an Independent External Monitorwho is responsible for overseasing the process ofprocurement and transactions where Integrity Pactsare signed between your Company and counterparties. YourCompanyentersintoIntegrityPactwithvendors/suppliers/contractorsforordersof₹1.0Crore&aboveforEPCProjectsandforordersof₹25.0lakhs&aboveforTownAdministrationandIn-houseProcurement.ThedraftIPformspartoftenderdocuments,whereverapplicable.TillMarch2018,yourCompanyhassignedIntegrityPact (IP)with 177 suppliers/contractors. Sofarnorepresentation/complaints/disputeshavebeenreceivedinthemattersoftendersandcontractsunderIP.

Vigilance Awareness Week-2017 was observed atMECON Head Office, Ranchi and at various SiteOffices from 30th October to 4th November 2017 inwhich the employees participated with enthusiasm.The theme for observing Vigilance AwarenessWeek2017was“MyVision–CorruptionFreeIndia”.Variousprogrammes/activities/talks were organized on thisoccasiontosensitizeemployees.Talksandsensitizationprogrammes were also organized for students atRanchiandatothercitiesalloverIndiaandatotalof17academicinstitutionshasbeencoveredincluding7atRanchiand10outsideRanchi.

Complaint Handling Policy has been uploadedon Company’s website with a provision of lodgingcomplaint online which is accessible to commonindividuals.ContactDetailsofCVOandSeniorOfficialsofVigilance department,Organizational Structure ofDepartment,VigilanceQualityPolicyoftheCompanyandISOCertificateofVigilanceDepartmenthavebeenuploadedonCompany’sWebsitewww.meconlimited.co.in. Whistle Blower Policy and Fraud PreventionPolicy.TheHandbookofCVCCirculars&Guidelines,ResolutiononPublicInterestDisclosures&Protectionof Informer (PIDPI), Integrity Pact andRTIManualhavebeenuploaded in theVigilance tabavailableontheCompany’sWebsite.

YourCompanyispleasedtoinformyouthatVigilanceDepartment follows a well-established QualityManagementSystem(ISO9001:2008)whichhasbeencertifiedbyM/sTUVIndiaPvt.Ltd. (asubsidiaryofTUV NORD CERT Gmbh, Germany) and is validuntil 14.09.2018. TUV India has also conducted aSurveillanceAuditofVigilanceDepartmentatRanchion 16.10.2017 and has expressed satisfaction on theQMSbeingfollowedbyVigilanceDepartment.

22.0 DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT.

The Company has a Risk Management Policywith the objective of managing the potential riskand 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 policies andprocedures cover technical, marketing, contracts,financial and human resources. Management isaccountable to the Board of Directors for effectiveimplementation of risk management strategies inall relevant areas of company operations. For thisthroughout theyear, regular reviewsareheldatboththe corporate and operational levels to identify andprepare action plans to address any new opportunities orrisks thathavearisenor likely toemergesincethepreviousreview.Themanagementdiscussesallcategoriesofriskswithmembers of the Audit Committee. Risks associatedwithcomplianceandfinancialreportingisalsosharedwith the Audit Committee. On quarterly basis, themanagement reviews actual performance againstthe targeted budget and forecast are held with allsupplementarydata/documents.Thewellestablishedriskmanagementandcontrol systems thusdescribedandadoptedprovideareasonableassuranceastotherealizationofstrategicobjectives.Also,theframeworkissubjecttoconstantmonitoringandreviewtoprevent/eliminatetheinstancesofnon-compliancewithrulesand regulations.During the F.Y 2017-18 there was no such potentialriskwhichcouldhavethreatenedtheexistenceoftheCompany. 23.0 RIGHT TO INFORMATIONIn 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.

Board Report

MECONLIMITED 25

24.0 CHANGES IN BOARD OF DIRECTORS DURING F.Y 2017-18.

Shri Subir Chattopadhyay, Director (Project) retiredfromtheservicesoftheCompanyonattainingtheageofsuperannuationon31.08.2017.

Shri Syedain Abbasi, IAS, Govt. Director and JointSecretary to the Ministry of Steel ceases to be theDirectoroftheCompanyw.e.f11.10.2017.

ShriSunilBarthwal,IAS,JointSecretarytotheMinistryofSteelwasappointedasGovt.DirectorontheBoardoftheCompanyw.e.f.11.10.2017.

ShriSalilKumarwasappointedasDirector(Projects)oftheCompanyw.e.f.25.01.2018.

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,CharteredAccountants,1stFloor,Sarjana Building, 1, Main Road, Ranchi – 834001(Jharkhand)were appointedas StatutoryAuditorsbytheComptroller&AuditorGeneralof India to auditthe accounts of the Company for the financial year2017-18.TheyhavealsobeenassignedtocarryouttheauditunderSection44ABoftheIncomeTaxAct,1961fortheyear2017-18.

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 31st March, 2018, theapplicableaccountingstandardshadbeenfollowedalongwithproperexplanationrelatingtomaterialdepartures;

ii) TheDirectorshadselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitorlossoftheCompanyforthatperiod;

iii) The Directors had taken proper and sufficient

care for themaintenance of adequate accountingrecords in accordancewith the provisions of theCompaniesAct, 2013 for safeguarding the assetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;

iv) TheDirectors had prepared the annual accountsforthefinancialyear2017-18onagoingconcernbasis; and

v) TheDirectorshaddevisedpropersystemstoensurecompliance with the provisions of all applicablelaws and that such system were adequate andoperatingeffectively.

29.0 INDEPENDENT DIRECTOR DECLARATION

IntermsofSection149(7)oftheCompaniesAct,2013,necessary declaration has been given by Shri SisirKumar Appikatla, Independent Director stating thathemeets the criteriaof independenceasprovided inSection149(6)oftheCompaniesAct,2013.

30.0 ACKNOWLEDGEMENT

Your Directors are pleased to place on record theirappreciation for the contribution of all concernedtowards the successful working of the Companyduring the year. The Directors also express theirsincereandgrateful thanks to theCompany’s trustedclients,suppliers,sub-contractorsandotherpartners&stakeholdersinbusinessforenablingittoperformup-totheexpectationsofthecustomers.

Your Directors gratefully acknowledge the support,cooperationandguidancereceivedfromtheMinistryof Steel, Government of India and various otherMinistries,Govt.ofJharkhandandDepartmentsoftheCentralandStateGovernmentsandIndianEmbassiesabroad.

YourDirectorsalsoplaceonrecordtheirappreciationand also acknowledge the dedicated efforts ofits employees at all levels for smooth & effectivefunctioningoftheCompany.

Forandonbehalfofthe BoardofDirectorsof MECONLIMITED

AtulBhatt ChairmanandManagingDirector

Place:Ranchi

Date:27.08.2018


MECON

Appendix - I

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.03.2018

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 79.00%

2 CONSTRUCTIONCONTRACTS 21.00%

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%

FORM NO. MGT 9

MGT 9

MECONLIMITED 27

c) State Govt(s) - - - 0.0000% - - - 0.0000% 0.0000%

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


MECON

i) Individual shareholders holding nominal share capital upto Rs. 1 lakh

- - - 0.0000% - - - 0.0000% 0.0000%

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 GOVERNMENT DIRECTOR

120 0.0003% NIL 120 0.0003% NIL 0.0000%

3 CMD, MECON 120 0.0003% NIL 120 0.0003% NIL 0.0000%

TOTAL 40,138,360 100.0000% 40,138,360 100.0000% 0.0000%

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

SN Particulars Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares % of total shares No. of shares % of total shares

Atthebeginningoftheyear

-NOCHANGE-Date wise Increase /Decrease inPromotersShare holding duringtheyearspecifying

Attheendoftheyear

MGT 9

MECONLIMITED 29

(iv) Shareholding Pattern of top ten Shareholders

(OtherthanDirectors,PromotersandHoldersofGDRsandADRs):

SN For each of the Top 10 shareholders

Shareholding at the beginning of 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


No. of shares % of total shares

No. of shares % of total shares

1 GOVERNMENT 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%

2 CMD

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%


MECON

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 thefinancialyear

i)PrincipalAmount

ii)Interestduebutnotpaid

iii)Interestaccruedbutnotdue NIL NIL

Total (i+ii+iii) NIL NIL

MGT 9

MECONLIMITED 31

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 AmountAtul Bhatt S. Chattopahyay

P. K. Sarangi Gautam Chatterjee

Salil Kumar

Period From 01-04-17 to 31-03-2018

From 01-04-17 to 31-08-2017

From 01-04-17 to 31-03-2018

From 01-04-17 to 31-03-2018

From 25-01-18 to 31-03-2018

1 Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

2,578,321.00 2,942,928.00 2,607,853.00 2,489,037.00 208,601.00 10,826,740.00

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

212,481.00 112,123.00 278,944.00 185,118.00 - 788,666.00

(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) 2,790,802.00 3,055,051.00 2,886,797.00 2,674,155.00 208,601.00 11,615,406.00

Ceiling as per the Act

B. Remuneration to other Directors

SN. Particulars of Remuneration Name of Directors Total Amount1 IndependentDirectors Shri Sisir Kumar Appikatla

Feeforattendingboard/committeemeetings - 100,000.00Commission -Others,pleasespecify -Total(1) - 100,000.00

2 OtherNon-ExecutiveDirectors Shri Saraswati Prasad, IAS, Shri Syedani Abbasi, IAS (upto 11.10.17) & Shri Sunil Barthwal, IAS

(w.e.f. 11.10.17)Feeforattendingboardcommitteemeetings -Commission -Others,pleasespecify -Total(2) - -Total(B)=(1+2) - 100,000.00TotalManagerialRemuneration -OverallCeilingaspertheAct -


MECON

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

SN. Particulars of Remuneration Name of Key Managerial Personnel Total Amount

NameDesignation CEO Company Secretary CFO

1 Grosssalary

-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

MGT 9

MECONLIMITED 33

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


MECON

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 is available at www.meconlimited.co.in/Writereaddata/Downloads/CSR_Policy.pdf

� YourCompanyhastwo-tierorganizationalstructuretosteertheCSRagenda.TheBoardLevelCSR&SustainabilityCommitteecomprisingofaGovernmentDirectorasChairmanandaParttimeIndependentDirector&afunctionaldirectorasmembersandateamofcross-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,withspecialattentiontothedevelopmentofweaker/marginalized/underprivilegedsectionsofthesocietyincludingSC/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) ThedetailsofCSRProjectsapprovedbytheBoardofDirectorsareindicatedatAnnexure-I.Thesameisalsoavailableatwww.meconlimited.co.in/csr_activities_planned.aspx

c) ThemainhighlightsofCSRProjects/ActivitiesundertakenbyyourCompanyduringtheyearareasfollows:

i) Sanitation(SwachhBharatAbhiyan)

ii) Healthcare

iii) Education

iv) SkillsDevelopment&Livelihood

v) SocialWelfare

vi) RuralDevelopment

CORPORATE SOCIAL RESPONSIBILITY (CSR) & SUSTAINABILITY

CSR and Sustainability

MECONLIMITED 35

vii) Otheractivities/MiscellaneousPrograms

2. Composition of the CSR Committee

� ThelastreconstitutedCSR&SustainabilityCommitteewhichwasinplaceason31.03.2018,consistsofthefollowingDirectors:

i) ShriSunilBarthwal,IAS GovernmentDirector

ii) ShriSisirKumarAppikatla Part-timeIndependentDirector

iii)ShriPradiptaKumarSarangi Director(Technical)

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 :

2014-15 : ₹3,273.95Lakh

2015-16 : ₹(-)17,496.18Lakh

2016-17 : ₹(-)8,815.32Lakh

b) AverageNetProfitforthelast3financialyears : ₹(-)7,679.18Lakh

4. Funds allocable towardsCSR expenditure for the Financial Year2017-18 : NIL

5. Details ofCSR fund spentduring thefinancial year 2017-18, are indicated inAnnexure-II.Manner inwhichtheamountspentareasgivenbelow:

a) Totalamountavailableforthefinancialyear2017-18:

i) Carry-overfundsfrompreviousyears: : ₹203.12Lakh

ii) Allocationforfinancialyear2017-18 : NIL

Total amount : ₹ 203.12 Lakh

b) Total amount spent on CSR activities during the financialyear2017-18 : ₹ 49.12 Lakh

c) Amountunspent(tobecarriedtonextfinancialyear(i.e.FY2018-19) : ₹154.00 Lakh

6. Reasons for not spending the amount:

6.1 ThemajorityofCSRprojects/activitiesareinfrastructuredevelopmentprojectswhichtakestimeinconceivingtheproject,carryingoutbasicdesign&detailedengineering,tendering,drawingapprovalandthenconstruction,etc.

Further,astheseprojectsareinLWE(LeftWingExtremism)affectedvillages/areas,therearevariousfactorswhichaffecttheexecutionoftheprojects:

i) Non-availability of good Contractors and skilled labours for working in such extremismaffectedremotevillagesofJharkhand.

ii) FinalisingContractorstoworkintheLWEaffectedareasofJharkhandisverydifficult.

iii) Threatperceptionfortheworkers,supervisors&contractorsintheextremismaffectedremotevillagesofJharkhand.

iv) TransportationofbuildingmaterialsinextremismaffectedremotevillagesofJharkhand.


MECON

TheaboveproblemsinLWEaffectedareasresultsinveryslowprogressofworkandfulfillmentoftargets.ThisinturnaffectstheutilizationofCSRfunds.

6.2 Inaddition,thefollowingprojectsaslistedbelowcouldnotbetakenupduetothereasonsasindicated:

i) Providingmedicalcareequipment/instrumentsinmobileunit(Ambulance)ofLutheranHealthCareSociety,Ranchi[Sl.No.2(iii)ofListofCarry-overProjectsforFY2017-18]:

Thetenderwascancelledasnoparty/supplierquotedagainstthetender.

ii) Providing Play items to Rose Bud Preparatory School Ranchi [Sl.No.3 (ii) of List of Carry-overProjectsforFY2017-18]:

Thetenderwascancelledasirregularitieswerenoticedinthebiddingdocuments.

iii) AnnualMaintenanceof36nos.Bio-Toilets/PurchaseofBio-MediaKit[Sl.No.1(i)ofListofNewProjectsforFY2017-18]:

In the previous years, M/s Stone India Limited, Kolkata had supplied Bio-Media Kit (Bacteria)alongwiththeir36nos.Bio-ToiletsinMHRDschoolsofJharkhand.HoweverlateronastheyhadstoppedtheirbusinessinBio-Toilets,MECONcontactedsomeoftheApprovedSuppliersi.e.Transferof Technology (TOT) holders of Bio-digesters (Bio-Media Kit/Bacteria) of Defence Research &DevelopmentOrganisation(DRDO),MinistryofDefence,NewDelhi.Inresponsetothequery,theyshowedtheirinabilitytosupplythesame,indicatingthatthe“Bacteriaenrichedinoculums”,whichtheyaresupplying,willnotbeeffectiveinthetanksofBio-ToiletsinstalledbyMECONthroughM/sStoneIndiaLimited.

iv) Providing2nos.MortuaryRefrigerator(FreezerBox)toLocalNGOs/SocietiesofRanchi[Sl.No.2(ii)ofListofNewProjectsforFY2017-18]:

Thetenderwascancelledascartelisationwasobservedamongthetenderersinthesubjecttender.

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) As indicated inSl.No.4above,CSRallocation forfinancialyear2017-18wasNil.Thus,no fundcouldbeallocatedfor“Sanitation/SwachhBharatKosh”,aswasadvisedbytheDepartmentofPublicEnterprises,MinistryofHeavyIndustries&PublicEnterprises,GovernmentofIndiavideOMno.CSR-01/0003/2016-Dir(CSR)dated:01.08.2016.

However,anamountof₹8.23Lakhwasspentduringthefinancialyear2017-18on“Sanitation”withrespectto“ConstructionofToiletComplexesatVillage-Pancha,Block-Bundu,District–Ranchi(Carry-overprojectsoffinancialyear2012-13)under“RuralDevelopmentProjects”.

P.K.Sarangi Director(Technical)

SunilBarthwal,IAS Chairman(CSRCommittee)


MECONLIMITED 37

MEC

ON

LIM

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C

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7-18

Appe

ndix-A

SI.

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no.

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Sche

dule

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MECON

MEC

ON

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Cor

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017-

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MECONLIMITED 39

MEC

ON

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C

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and

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MECON

Sl.

No.

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Item

no

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Sche

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(ii)

45.0

010

03.

94

1.77

6

2.22

02.

220

Proj

ect o

f FY

2016

-17

Su

b-To

tal (

3)

9.76

2.

000

0.00

03.

550

5.55

0

4Pr

ojec

ts fo

r Old

Age

Hom

es, O

rpha

nage

, Diff

eren

tly A

bled

etc

.i)

Cons

truc

tion

of

Boys

H

oste

l in

O

rpha

nage

at V

ill.-

Sung

i, Kh

unti

(iii)

010

027

.00

27

.000

27.0

00Pr

ojec

t of F

Y 20

15-1

6

ii)Co

nstr

uctio

n of

Bo

ys

Hos

tel

in

Orp

hana

ge a

t Vill

.-Su

ngi,

Khun

ti(ii

i)0

100

1.10

1.

100

1.10

0Ad

ditio

nal f

und

requ

irem

ent f

or S

l. N

o. 4

i) fo

r co

mpl

etio

n of

alre

ady

appr

oved

pr

ojec

t of F

Y 20

15-

16 (

Fund

pro

visi

on in

FY

201

5-16

: `

15.0

la

khs;

in F

Y 20

16-1

7:

Rs.

12.

0 la

kh)

Su

b-To

tal (

4)

28.1

0

28.1

000.

000

0.00

028

.100

5R

ural

dev

elop

men

t pro

ject

si)

Cons

truc

tion

of

Toile

t Bl

ock

in

Villa

ge S

choo

l of

Ado

pted

Vill

age-

Panc

ha

(x)

75.5

310

042

.072

31

.777

10

.295

10.2

95Pr

ojec

t of F

Y 20

12-1

3

ii)Co

nstr

uctio

n of

Toi

let

Com

plex

in

Adop

ted

Villa

ge-P

anch

a(x

)80

.20

100

59.1

3857

.976

47.4

25

10.5

5110

.551

Proj

ect o

f FY

2012

-13

iii)

Cons

truc

tion

of T

oile

t Co

mpl

ex i

n Ad

opte

d Vi

llage

-Par

sa T

oli,

Panc

ha(x

)44

.19

100

59.1

38

26.1

30

33.0

0833

.008

Proj

ect o

f FY

2012

-13

Cont

d...


MECONLIMITED 41

Sl.

No.

Proj

ects

Item

no

. of

Sche

dule

-VI

I

Fina

ncia

l Pr

ogre

ss

Targ

et (%

) in

FY 2

017-

18

Proj

ect

Cost

(in

Rs.

La

khs)

Valu

e of

w

ork

done

(in

Rs.

La

khs)

Expe

nses

do

ne in

FY

12-

13,

13-1

4,

14-1

5,

15-1

6 &

16

-17

(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 Girl

s in

Orp

hana

ge o

f Ad

opte

d Vi

llage

-Su

ngi

(x)

71.5

510

035

.374

35.1

8925

.310

9.

879

9.87

9Pr

ojec

t of F

Y 20

13-1

4

v)Co

nstr

uctio

n of

To

ilet

Bloc

k fo

r Bo

ys

in

Orp

hana

ge

of

Adop

ted

Villa

ge-S

ungi

(x)

60.2

710

035

.570

21

.440

14

.130

14.1

30Pr

ojec

t of F

Y 20

14-1

5

vi)

Cons

truc

tion

of

Clas

s ro

oms

in

Rur

al a

reas

of U

P(x

)81

.21

100

15.2

13

12.3

55

2.85

82.

858

Proj

ect o

f FY

2012

-13

Su

b-To

tal (

5)

246.

504

0.

000

0.00

080

.720

80.7

20

6O

ther

Act

iviti

es/M

isce

llane

ous

Prog

ram

s

i)Co

nstr

uctio

n of

Com

mun

ity C

entr

e in

UP

32

.84

100

40.5

5

13.3

17

27.2

3327

.233

Proj

ect o

f FY

2013

-14

ii)Ex

hibi

tion-

cum

-Cra

ft M

ela

for

cent

res,

vill

ages

etc

.

1.00

1.

000

1.00

0Pr

ojec

t of F

Y 20

15-1

6

iii)

Impa

ct a

sses

smen

t rep

ort

0

100

1.00

1.

000

1.00

0Pr

ojec

t of F

Y 20

15-1

6

iv)

Impa

ct a

sses

smen

t rep

ort

0

100

0.50

0.

500

0.50

0Ad

ditio

nal f

und

requ

irem

ent f

or S

l. N

o.

6 iii

) fo

r co

mpl

etio

n of

alre

ady

appr

oved

pr

ojec

t of F

Y 20

15-1

6 (F

und

prov

isio

n in

FY

2015

-16

: ` 1

.0 la

khs)

Su

b-To

tal (

6)

43.0

5

0.00

00.

000

29.7

3329

.733

TO

TAL

31

.100

0.00

013

5.97

316

7.07

3


MECON

MEC

ON

LIM

ITED

C

orpo

rate

Soc

ial R

espo

nsib

ility

and

Sus

tain

abili

tyLi

st o

f “N

ew P

roje

cts”

for F

Y 2

017-

18

Appe

ndix-D

Sl.

No.

Proj

ects

Item

no.

of

Sche

dule

-VII

Fina

ncia

l Pro

gres

s Ta

rget

(%) i

nFY

201

7-18

Proj

ect

Cos

t (in

Rs.

Lakh

s)

Plan

ned

Expe

nses

on

New

Pro

ject

s of 2

017-

18

(In

Rs.

Lakh

s)

Rem

arks

From

To

1Sw

achh

Vid

yala

ya –

Sw

achh

Bha

rat A

bhiy

an :

Con

stru

ctio

n/M

aint

enan

ce o

f Toi

lets

in M

HR

D S

choo

ls, C

onst

ruct

ion

of T

ubew

ells

/Bor

ewel

ls e

tc.

i)Ann

ual

Maint

enan

ceo

f36

Nos

.Bi

o-To

ilets/

Pu

rcha

seofB

io-M

ediaK

it(i)

010

01.00

1.00

New

pro

ject

Su

b-To

tal

1.

001.

00

2H

ealth

care

, San

itatio

n an

d D

rink

ing

Wat

er p

roje

cts

i)Pr

ojec

tSm

ile:C

left

lipan

dPa

latesu

rger

yfo

rpoo

r/do

wnt

rodd

en/n

eedy

patient

s(i)

010

01.75

1.75

0N

ew p

roje

ct

ii)Pr

ovid

ing

2no

s.M

ortu

ary

Refriger

ator

(Fr

eeze

rBo

x)to

Loc

alN

GOs/So

cietieso

fRan

chi

(i)0

100

1.50

1.50

0N

ew p

roje

ct

Su

b-To

tal

3.

253.

25

3Pr

ojec

ts fo

r Old

Age

Hom

es, O

rpha

nage

, Diff

eren

tly A

bled

etc

.

i)Con

stru

ctio

nof

Bor

ewella

tOld

Age

Hom

es,N

agri,

Ra

nchi

(iii)

010

03.25

3.25

0N

ew p

roje

ct

Su

b-To

tal

3.

253.

250

TO

TAL

7.

507.

50


MECONLIMITED 43

ANNEX

URE

-II

MA

NN

ER (

DET

AIL

S O

F T

HE

PR

OJE

CT

) IN

WH

ICH

TH

E A

MO

UN

TSP

ENT

DU

RIN

G T

HE

FIN

AN

CIA

L Y

EAR

201

7-18

(Per

iod

Apr

il’20

17 –

Mar

ch’2

018)

(Aso

n:31.03

.201

8)

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

1.Sa

nita

tion

(Sw

achh

Vid

yala

ya –

Sw

achh

Bha

rat A

bhiy

an in

MH

RD

Sch

ools

)

i)Co

nstr

uctio

n of

To

ilets

in

M

HR

D

Scho

ols

of J

hark

hand

(un

der

Swac

hh

Vidy

alay

a Ab

hiya

n)

(Car

ry-o

ver

proj

ect o

f FY

2015

-16)

[Pro

ject

Cos

t :

(Toi

lets

+ B

orew

ells

) :

` 57

,33,

000]

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e -

Sani

tatio

n

10 n

os.

in R

anch

i &

Deo

ghar

di

stric

ts o

f Jha

rkha

nd96

,620

--1,

80,0

40

(in F

Y 14

-15)

+

46,2

2,85

0

(in F

Y 15

-16)

+

8,33

,490

(in F

Y 16

-17)

= 56

,36,

380

Dire

ctW

ork

com

plet

e

a)

Phys

ical

prog

ress

– 1

00%

b) F

inan

cial

pr

ogre

ss –

98.

31%

c)

Perf

orm

ance

Ce

rtifi

cate

aw

aite

d fr

om

Cont

ract

or.

Sub-

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l (1)

96,6

20--

56,3

6,38

0


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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

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repo

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g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

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

tea

m o

f do

ctor

s, p

aram

edic

al

staf

f et

c. a

long

with

med

icin

es f

or f

ree

heal

th c

heck

-up,

whe

rein

med

icin

es

wer

e gi

ven

to th

e po

or &

nee

dy p

atie

nts

Hea

lthca

rei)

Mob

ile H

ealth

cam

ps w

ith a

te

am o

f doc

tors

, par

amed

ical

st

aff e

tc. a

long

with

med

icin

e fo

r fr

ee h

ealth

che

ck-u

p &

m

edic

ines

wer

e gi

ven

to t

he

poor

&

ne

edy

patie

nts

at

Vill.

- O

beria

, Vi

ll.-

Gan

yor

Toli,

Vi

ll.-P

okha

r To

li,

Jaga

nnat

hpur

, CSR

Pav

ilion

, Sh

yam

ali

in p

rope

r &

nea

r R

anch

i; Vi

ll,-

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ha,

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k -

Bund

u; V

ill.-

Rup

ru,

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erw

a Ko

cha,

& V

ill.-

Pa

har S

ingh

Birh

ore

of B

lock

–

Anga

ra;

Vill.

- Pa

ndu

Toli,

N

agri

in R

anch

i di

stric

t an

d Vi

ll.-

Rai

& V

ill.-

Sun

gi i

n Kh

unti

Dis

tric

t of J

hark

hand

2,00

,000

1,98

,335

1,98

,335

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ct1)

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egul

ar o

n-go

ing

proj

ect

a)

Phys

ical

pr

ogre

ss –

100

%

b)

Fina

ncia

lpr

ogre

ss –

100

%

2)

No.

of H

ealth

Ca

mps

: 79

N

o. o

f Pa

tient

s : A

roun

d 3,

900

patie

nts

ii)Pr

ovid

ing

an A

mbu

lanc

e(A

ppro

ved

Proj

ect o

f FY

2016

-17)

Hea

lthca

reBh

arat

Sew

ashr

am S

angh

a,

PO -

K.G

. Ash

ram

PS -

Sar

aidh

ela,

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nbad

(Jha

rkha

nd)

9,70

,000

9,70

,000

9,70

,000

Dire

ctW

ork

com

plet

e.

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%


MECONLIMITED 45

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

iii)

Prov

idin

g a

Hea

rse

vehi

cle

(Veh

icle

for

carr

ying

Cof

fin fo

r Fu

nera

l) (A

ppro

ved

Proj

ect o

f FY

2016

-17)

Hea

lthca

rePu

njab

i Hin

du B

irada

ri, R

anch

i(J

hark

hand

)9,

72,0

009,

72,0

009,

72,0

00D

irect

Wor

k co

mpl

ete.

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

iv)

Proj

ect

Smile

: C

left

Lip

and

Pala

te

Surg

ery

for

poor

/dow

ntro

dden

/nee

dy

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

1,19

,000

1,19

,000

1,19

,000

Dire

ctW

ork

com

plet

e.

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

c)

No.

of

Patie

nts

- 07

Nos

.

Sub-

Tota

l (2)

22,6

1,00

022

,59,

335

22,5

9,33

5

3.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

Com

mun

ity

Educ

atio

n Ce

ntre

s

�

Hon

orar

ium

to te

ache

rs

Educ

atio

n Vi

ll.-

Obe

ria,

Vill.

- G

anyo

r To

li,

Vill.

-Pok

har

Toli,

Irg

oo T

oli

(2

nos.

),

Argo

ra,

Jaga

nath

pur,

R

avid

as M

ohal

la,

Kusa

i, Pa

thar

Ko

cha,

Bha

ram

Tol

i in

pro

per

& n

ear

Ran

chi;

Vill.

– R

upru

, An

gara

Blo

ck o

f R

anch

i Dis

tric

t &

Vill

. – R

ai o

f Khu

nti d

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ict o

f Jh

arkh

and

3,43

,200

2,60

,000

2,60

,000

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ctR

egul

ar o

n-go

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proj

ect

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ical

prog

ress

– 1

00%

b)

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ncia

lpr

ogre

ss –

100

%

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

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nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

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nt s

pent

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proj

ects

or

prog

ram

mes

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head

s :

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ct

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nditu

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on p

roje

cts

or

prog

ram

mes

2.

Ove

rhea

ds

Cum

ulat

ive

expe

nditu

re

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

ii)Co

nstr

uctio

n of

an

ad

ditio

nal

Clas

s R

oom

(Pr

ojec

t cos

t: `

3,94

,885

)(C

arry

-ove

r Pr

ojec

t of F

Y 20

16-1

7)

Educ

atio

nPr

amat

hana

th

Mid

dle

Scho

ol,

Hin

oo, R

anch

i (Jh

arkh

and)

2,17

,185

2,17

,185

1,77

,700

( in

FY

16-1

7)+

2,17

,185

(in F

Y 17

-18)

= 3,

94,8

85

Dire

ctW

ork

com

plet

e.

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

Sub-

Tota

l (3)

5,60

,385

4,77

,185

6,54

,885

4.Sk

ill D

evel

opm

ent &

Liv

elih

ood

i)Fr

ee

Stitc

hing

tr

aini

ng

for

unde

r pr

ivile

ged

wom

en

at

10

stitc

hing

Ce

ntre

s•

Hon

orar

ium

to te

ache

rs•

Mis

c. e

xpen

ditu

re –

Ann

ual

Exam

inat

ion

of S

titch

ing

Trai

ning

Ce

ntre

s (2

016-

17 b

atch

)

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

prop

er &

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

&

Vill

– Su

ngi o

f Kh

unti

dist

rict

of

Jhar

khan

d.

2,64

,000

26,7

502,

20,0

0021

,310

2,20

,000

21,3

10

Dire

ctR

egul

ar o

n-go

ing

proj

ect

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

ii)Vo

catio

nal

Trai

ning

in

th

e fie

ld

of

Elec

tric

al

tech

nici

an

and

Wel

ding

te

chno

logy

• H

onor

ariu

m to

sta

ff m

embe

rs•

VTI (

Adve

rtis

emen

t in

New

spap

er)

Voca

tiona

l Tr

aini

ng

Sche

me

(Em

ploy

men

t/Li

velih

ood

Enha

ncin

g Vo

catio

nal

Skill

s)

VTI,

Shya

mal

i, R

anch

i(J

hark

hand

)

2,05

,000

75,0

0040

,450

55,3

5040

,450

55,3

50

Dire

ctR

egul

ar

on-g

oing

pr

ojec

t

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pro

gres

s –

100%

Sub-

Tota

l (4)

5,70

,750

3,37

,110

3,37

,110


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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

ii)Co

nstr

uctio

n of

an

ad

ditio

nal

Clas

s R

oom

(Pr

ojec

t cos

t: `

3,94

,885

)(C

arry

-ove

r Pr

ojec

t of F

Y 20

16-1

7)

Educ

atio

nPr

amat

hana

th

Mid

dle

Scho

ol,

Hin

oo, R

anch

i (Jh

arkh

and)

2,17

,185

2,17

,185

1,77

,700

( in

FY

16-1

7)+

2,17

,185

(in F

Y 17

-18)

= 3,

94,8

85

Dire

ctW

ork

com

plet

e.

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

Sub-

Tota

l (3)

5,60

,385

4,77

,185

6,54

,885

4.Sk

ill D

evel

opm

ent &

Liv

elih

ood

i)Fr

ee

Stitc

hing

tr

aini

ng

for

unde

r pr

ivile

ged

wom

en

at

10

stitc

hing

Ce

ntre

s•

Hon

orar

ium

to te

ache

rs•

Mis

c. e

xpen

ditu

re –

Ann

ual

Exam

inat

ion

of S

titch

ing

Trai

ning

Ce

ntre

s (2

016-

17 b

atch

)

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

prop

er &

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

&

Vill

– Su

ngi o

f Kh

unti

dist

rict

of

Jhar

khan

d.

2,64

,000

26,7

502,

20,0

0021

,310

2,20

,000

21,3

10

Dire

ctR

egul

ar o

n-go

ing

proj

ect

a)

Phys

ical

prog

ress

– 1

00%

b)

Fina

ncia

lpr

ogre

ss –

100

%

ii)Vo

catio

nal

Trai

ning

in

th

e fie

ld

of

Elec

tric

al

tech

nici

an

and

Wel

ding

te

chno

logy

• H

onor

ariu

m to

sta

ff m

embe

rs•

VTI (

Adve

rtis

emen

t in

New

spap

er)

Voca

tiona

l Tr

aini

ng

Sche

me

(Em

ploy

men

t/Li

velih

ood

Enha

ncin

g Vo

catio

nal

Skill

s)

VTI,

Shya

mal

i, R

anch

i(J

hark

hand

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2,05

,000

75,0

0040

,450

55,3

5040

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55,3

50

Dire

ctR

egul

ar

on-g

oing

pr

ojec

t

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pro

gres

s –

100%

Sub-

Tota

l (4)

5,70

,750

3,37

,110

3,37

,110


MECONLIMITED 47

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

5.So

cial

Wel

fare

i)Co

nstr

uctio

n of

Com

mun

ity C

entr

e(P

roje

ct c

ost:

` 40

,55,

000)

(Car

ry-o

ver

proj

ect o

f FY

2013

-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

, Dis

t.-Ka

npur

Deh

at,

Stat

e –

U.P

.27

,23,

250

22,8

606,

11,3

70(F

Y 13

-14)

+57

,450

(FY

15-1

6) +

6,62

,930

(in

FY

16-1

7)+

22,8

60(in

FY

17-1

8)=

13,5

4,61

0

Dire

ctCo

nstr

uctio

n w

ork

unde

r pr

ogre

ss

a)

Wor

k do

ne u

pto

Roo

f lev

el.

b)

Phys

ical

prog

ress

– 6

1.79

%

c)

Fina

ncia

l pr

ogre

ss –

33.

40%

d)

Bills

aw

aite

d fr

om

M/s

HSC

L.

e) B

alan

ce w

ork

: D

oors

, Sta

ir’s

Rai

ling,

Plu

mbi

ng,

Sani

tary

, Pla

ster

ing,

El

ectr

ical

, Pai

ntin

g,

Sept

ic ta

nk, S

oak

Pit,

Boun

dary

wal

l, G

ate,

etc

.

Sub-

Tota

l (5)

27,2

3,35

022

,860

13,5

4,61

0

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

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repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

6.R

ural

Dev

elop

men

t

i) Co

nstr

uctio

n of

3 n

os.T

oile

t com

plex

es

(Tot

al P

roje

ct c

ost:

` 1,

60,3

4,71

5/-)

(Car

ry-o

ver

proj

ects

of F

Y 20

12-1

3)

Star

t dat

e :

08.0

3.20

13 (

LOI)

Com

plet

ion

date

:

07.0

9.20

13

(6 m

onth

s)(A

s pe

r W

ork

Ord

er)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e -

Sani

tatio

n

1) V

illag

e R

esid

entia

l Sc

hool

(P

rana

vana

nd V

idya

Man

dir)

, Pa

ncha

– (1

4-se

ater

toile

t)2)

Vill

age

– Pa

ncha

(10

-sea

ter

toile

t)3)

Vill

age

–Par

sa T

oli,

Panc

ha

(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

53,8

5,40

08,

23,0

9018

,27,

745

(in F

Y 12

-13)

+

37,3

1,74

0(in

FY

13-1

4) +

7,

65,2

00(in

FY

14-1

5) +

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)

Villa

ge S

choo

l – W

ork

com

plet

e.

a)

Phys

ical

pr

ogre

ss

–10

0%

b)

Fina

ncia

l pr

ogre

ss

– 83

.14%

c)Fi

nal b

ill u

nder

pro

cess

ing

in F

inan

ce

d)Bi

lls fo

r add

ition

al w

ork

unde

r pro

cess

ing

in F

inan

ce.

2)Vi

ll.-

Panc

ha –

Wor

k co

mpl

ete.

a)Ph

ysic

al

prog

ress

–

100%

b)Fi

nanc

ial

prog

ress

–88

.70%

c)Fi

nal b

ill u

nder

pro

cess

ing

in F

inan

ce

d)Bi

lls fo

r add

ition

al w

ork

unde

r pro

cess

ing

in F

inan

ce.

3)Vi

ll –

Pars

a To

li

a)Ph

ysic

al

prog

ress

– 65

.76%

b)Fi

nanc

ial

prog

ress

–

44.1

9%

c)Ba

lanc

e w

ork:

Plu

mbi

ng,

Sani

tary

, Ele

ctric

s,

Fini

shin

g, S

olar

PV

Syst

em, e

tc.


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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

mes

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)

Proj

ect o

r Pr

ogra

mm

e w

ise

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

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

upto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

emen

ting

agen

cy*

Stat

us o

f the

Pro

ject

6.R

ural

Dev

elop

men

t

i) Co

nstr

uctio

n of

3 n

os.T

oile

t com

plex

es

(Tot

al P

roje

ct c

ost:

` 1,

60,3

4,71

5/-)

(Car

ry-o

ver

proj

ects

of F

Y 20

12-1

3)

Star

t dat

e :

08.0

3.20

13 (

LOI)

Com

plet

ion

date

:

07.0

9.20

13

(6 m

onth

s)(A

s pe

r W

ork

Ord

er)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e -

Sani

tatio

n

1) V

illag

e R

esid

entia

l Sc

hool

(P

rana

vana

nd V

idya

Man

dir)

, Pa

ncha

– (1

4-se

ater

toile

t)2)

Vill

age

– Pa

ncha

(10

-sea

ter

toile

t)3)

Vill

age

–Par

sa T

oli,

Panc

ha

(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

53,8

5,40

08,

23,0

9018

,27,

745

(in F

Y 12

-13)

+

37,3

1,74

0(in

FY

13-1

4) +

7,

65,2

00(in

FY

14-1

5) +

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)

Villa

ge S

choo

l – W

ork

com

plet

e.

a)

Phys

ical

pr

ogre

ss

–10

0%

b)

Fina

ncia

l pr

ogre

ss

– 83

.14%

c)Fi

nal b

ill u

nder

pro

cess

ing

in F

inan

ce

d)Bi

lls fo

r add

ition

al w

ork

unde

r pro

cess

ing

in F

inan

ce.

2)Vi

ll.-

Panc

ha –

Wor

k co

mpl

ete.

a)Ph

ysic

al

prog

ress

–

100%

b)Fi

nanc

ial

prog

ress

–88

.70%

c)Fi

nal b

ill u

nder

pro

cess

ing

in F

inan

ce

d)Bi

lls fo

r add

ition

al w

ork

unde

r pro

cess

ing

in F

inan

ce.

3)Vi

ll –

Pars

a To

li

a)Ph

ysic

al

prog

ress

– 65

.76%

b)Fi

nanc

ial

prog

ress

–

44.1

9%

c)Ba

lanc

e w

ork:

Plu

mbi

ng,

Sani

tary

, Ele

ctric

s,

Fini

shin

g, S

olar

PV

Syst

em, e

tc.


MECONLIMITED 49

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

es1.

Lo

cal a

rea

or O

ther

s2.

Sp

ecify

the

stat

e an

d di

stric

t (w

here

pro

ject

s or

pro

gram

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MECON

12

34

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No.

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ject

s or

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ivity

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tifie

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050

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0


MECONLIMITED 51

ANNEXURE – I

I. Indigenously developed Technology

Sl. No.

Efforts made towards technology absorption

Benefits derived like product improvement, cost reduction, product development

1 In-house Design Development ofTangentialCycloneforBlastFurnace

TheoldBFswereprovidedwithDustCatcher forprimarydustseparation fromBF top gas.DustCatcher is an old technologywithlowdustseparationefficiency(~60–65%).Thelowefficiencyposed inherentdifficultiesofhighcapacityGasCleaningPlant ,morewaterconsumptionandenvironmentalhazardsduetoslurry/sludgehandling.

Cyclone is a modern technology with much higher cleaningefficiency (>80%). Most of the modern BFs are equipped withCyclonetypeprimarydustseparatorwhichisbeingdesignedbyforeigntechnologysuppliers.

Theindigenousdesignisdevelopedinhousebasedonfirstprincipleandexperienceacquiredovertheyearsandin-housedatabase.Theestimatedforeignexchangesavingsis~0.50-0.60US$.

2 IncreaseinHotBlastTemperatureofExistingHotBlastStoves

In-housedesigndevelopmenthasbeencarriedout&successfullyimplementedforincreasingtheHotBlasttemperatureofexistingHotBlastStoves.Thishasbroadlyinvolved:

� Increaseinburnerefficiency � Designofmushroomdome � Useofhigherheatingsurfaceareacheckers � Improved partition wall design to eliminate blast short

circulatingThishas led to increaseofHotBlastTemperatureby600 -700 C withpotentialtogainanother30–400CafterimplementationofPCI.Technologies for increasingHotBlastStoveefficiencywereavailable only with global technology suppliers who normallychargedveryhighdesignfees.

3 Localized Heat Treatment of SteelBlank for Automotive applicationwithR&DdivisionTATASteel

� Complexheat treated sections canbeproducedduring thisspecialprocesswithinasingleblank

� ReductionofweightofAutomobiles. � EnhancementofsafetyofAutomobileparts.

4 BasicOxygenFurnace (BOF)VesselSuspensionSystem

Itisanin-housedevelopedsystemwhichwillfillthetechnologygapinBOFsteelmaking.Majorbenefitsofthissystemare:

� Simplified and sturdy designwith ease of replacement andrepair;

� Modularapproachandcompactsystemrequiringlessspace; � Nonrigiddesignallowingflexibilityofvesselmovementand

thermalexpansion; � Selfaligningfeaturesbothinverticalandtitledconditionof

vessel.

Expenditure incurred on Indigenously developed Technology through own R&D

TotalexpenditureincurredonR&DduringtheFinancialYear2017-18amountsto₹172.58Lakh.

TECHNOLOGY ABSORPTION


MECON

II: Imported Technology

Sl. No

Efforts made towards technology absorption. Benefits derived like product improvement, cost reduction, product development

1. RINL-ForgedWheelPlant,RaeBareli-Engineeringfor

� RobohandlingofWheels

� Useof9-rollverticalWheelRollingMachine

� Non-DestructiveTestingLine

BeingimplementedforthefirsttimeinIndia

� Resulting in elimination of intermediatereheatingthusenergysaving

� Resultinginbetterwheelshapeandreductioninmachiningallowances

� Resulting in in-line testing of allwheelswithrecordingofalltestresults

� Provision has been kept for export of forgedwheelsasthewheelsshallalsoconformtoAAR(AssociationofAmericanRailroads)Standards

Expenditure incurred on Imported Technology

Total expenditure booked by the Company on import of technology during the start of the Project. (₹ in Lakh)

F.Y2016-17 F.Y2017-18₹38.32 NIL

MECONLIMITED 53

TechnologyAbsorption

ANNEXURE-II

1.0 INTRODUCTION

With six decades of experience in Iron & Steel sector, your Company, has emerged as an Engineering andTechnologycentreandrenderingEPC,Design,Engineering,ConsultancyandPMCservicestotechnologyareasofMetals&Mining,Oil&Gas,Power,Infrastructure&Strategicsectors.Thisserviceportfolioisbackedbycrossfunctional capabilities, experiencedworkforce, pan-Indiapresence and reliable credentials.YourCompany,byvirtueof itsuniquedisposition in the Iron&Steel industry, is the sole consultancycompanywhichpossessesitsown technologies in theareasofPelletPlant,CokeOvenBattery&BlastFurnace.YourCompanyhasalsoleverageditspotentialtoprocureandexecutehighlystrategicprojectsofnationalimportanceinSpace,Defence&AtomicEnergy.

Goingforward,yourCompanyislookingatharnessinganyopportunitiesthrownbymetalsectorshowingsignsofrecoveryandGovernmentofIndia’sgrowthplans likeNationalSteelPolicy,UrjaGangamission,PFA24x7,EnvironmentalnormsforTPPs,NationalSolarEnergymissionetc.YourCompanyhasventuredintonewerareasofbusinesswithstrategicpartnerstomeetchallengesemergingfromchangedbusinessscenario.ThefuturebusinessvisionalsoentailsgrabbingupanyopportunitiesinareaslikeO&Mofsteelplants,performanceimprovementofexistingunits,transactionadvisoryservicesetc.

YourCompanyhasturneditscoursetoembraceprofitabilityandresolvestocontinueasaprofitableorganisationwithagreatermarketshareandtreadonthepathofinnovationwhileleveragingitscurrentcapabilitiestomakeinroadsintonewareasandregisteraformidablepresenceinallitsbusinessverticalsinthecomingyears.

2.0 SWOT Analysis

Strengths

i. CorecompetenceintheareaofMetalsandcapabilityinprovidingend-to-endsolutions,includingIntegratedProjectManagementinGreenfield/brown-fieldprojectsofvariousmagnitudes

ii. Capabilityinequipment&systemdesignandsupply&executioninFerrousarea

iii. Multi-disciplinary experienced and capable pool of engineers/technologists in various specializedtechnicaldisciplines

iv. Vastknowledgerepositoryandreferencematerials

v. Goodcredentialswithfinancialinstitutionsandregulatingauthorities

vi. Lowaverageageofemployeesduetoinductionofyoungprofessionals

vii. Widenetworkofofficesatvariouslocationsacrossthecountry

viii. Strongpastexperience&presenceinstrategicsectorincludingDefence,Aerospace,Nuclearsectoretc.

ix. ProminentpresenceingaspipelinesprojectofGAIL(LongDistancePipeLine&CityGasDistributionetc.)

x. ExperiencewithstatetranscosforPMCandconsultancyworkinsubstations.

xi. Experience in DEC and PMC services for govt. housing boards, state and central institutionalbuildings.

xii. Capabilityinenvironmentalimpactassessment&environmentalmanagementplans

xiii. In-house Environmental Engg. Laboratory which is recognized under Environment ProtectionAct,1986 renders its services for sampling, testing& analysis of air,water, noise, sewage and soilqualitytovariousPlantsinSteelandotherSectorsbothinprivateandpublic.InitiativeshavebeentakentomodernizeandexpandEnvironmentalEngineeringLaboratorybyinstallingsophisticatedinstruments.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT


MECON

xiv. NABET/QCIAccreditationfor16sectorsincludesMining,Onshore&offshoreoil&gasexploration,River valley and hydel projects, Thermal power plants, Coal washeries, Mineral Beneficiation,Metallurgical industries, Cement Plant, Coke Oven Plants, Oil & Gas transportation Pipelines,IsolatedStorage,ShipBreakingYard,IndustrialEstate,Ports&Harbour,Highways&railways,AreaDevelopment&TownshipProjects.

Weaknesses

i. Highincidenceofemployeebenefitexpenseascomparedtosomeofthecompetitors,especiallyinprivatesector.

ii. Skewedorganizationstructure(Stillundertransitions).

iii. Depletionofcriticalknowledge/skillsincertainareasonaccountofsuperannuation/separationofexperienced manpower.

iv. Limitedrecentcredentialsintherefining&petrochemicalspace

v. LimitedcredentialsforendtoendEPCinthermalpowergenerationandrenewablesenergy.

Opportunities

i. Anticipated future investments in mining, beneficiation, agglomeration / pelletisation, slurrytransportationandcoalwasheries.

ii. Possible future investment inSteel sector inviewof theNationalMissionof300MTCrudeSteelCapacityby2030-31.

iii. Largescaleinvestmentsinotherdiversifiedsectorsviz.oil&gas,infrastructure&strategicsectorsandpowertransmission&distribution&renewableenergysector

iv. Leveraging past experience in defence sector to harness new opportunities emanating with theopeningofDefenceProductionManufacturingsectorforparticipationofprivatesector(FDIhikedto49%).

v. Expansion in ports, power andmining sector are expected to offer associatedMaterialHandlingProjectsandtheCompanyexpectstogeneratebusinessfromthissector,bothonitsowncredentialsandalsothroughjointparticipationwithotherCompanies.

vi. RapidurbanizationandGovernmentalpolicythrustforprovisionofdrinkingwaterfacilitiesinurbanareasoffersanotherbusinessopportunity.Inthepast,yourCompanyhascarriedoutengineeringofalargenumberofin-plantwatersupplyprojectsandhasalsomadein-roadsininfrastructurewatersupplyprojects.Assuch,businessopportunityexistsintheareaofinter-citydrinkingwatersupply,UrbanWaterSupply,WaterTreatmentandSewageDisposalprojects.

vii. GrowingbusinessopportunitiesinEnvironmentManagement

viii. Development in sectors such asGreen technologies, nuclear power,watermanagement, slurry&waterpipelines,seawaterdesalinationplants,LNGterminalsetc.

ix. IncreasedinvestmentsinportsasaresultofSagarmalaprojectaswellasplannedexpansionofcoalminesisexpectedtothrowupopportunitiesforrelatedprojects

x. Enhancedinvestmentindefensesectorisexpectedtoofferopportunityinordnancedepotprojects.

xi. Additionalopportunitiescancomeupinthepowerspaceincluding.

a) De-SOx,De-NOxforexistingpowerplantsduetostrictemissionregulations

b) TransmissionanddistributionopportunitiesinthewakeofDDUGJY,IPDS,UDAYSchemesofGovtofIndia.

c) Repair&MaintenanceofexistingTPPs

xii. Additionalopportunitiescancomeupintheinfrastructurespaceincluding:

a) Waterdesalinationandwastewatertreatmentplants

b) Governmenthousing/commercialprojectsinthesmartcitiesspace

Management Discussion and Analysis

MECONLIMITED 55

Threats

i. Mushroomingofconsultancycompaniesoperatingatlowmargins.

ii. PresenceofIndianset-upofallmajorMulti-nationalcompanieslikeSMS,Siemens,Danielli,KobeSteel,etcprovidingcomprehensiveservicesincludingEngineeringPrivatesector,inparticular,optingforengineeredpackagesfromtheturnkeysuppliers,withoutengagementofexternalconsultants

iii. Stringenttechnicalpre-qualificationcriteriaforconsultancyaswellassupplyjobs

iv. RecentdeclineininvestmentinthecoreareaofMetalsbutcontinueddependenceonMetalssector

v. Unevenplayinggroundforpublic&privatesectors

vi. Today’sconsortiumpartnersemergeasfutureCompetitors

vii. Risk/uncertaintyinforeignstrategicTie-ups

viii. Longapprovalprocessalongwithdelaysindefencesectormayimpacttheoverallopportunityinthesector.

3.0 BUSINESS OUTLOOK

Global Economic Outlook

Theupswinginglobalinvestmentandtradecontinuedinthesecondhalfof2017.At3.8%,globalgrowthin2017wasthefastestsince2011.Withfinancialconditionsstillsupportive,globalgrowthisexpectedtotickuptoa3.9%Inboth2018and2019.Advancedeconomieswillgrowfasterthanpotentialthisyearandnext;euroareaeconomiesaresettonarrowexcesscapacitywithsupportfromaccommodativemonetarypolicy,andexpansionaryfiscalpolicywilldrivetheUSeconomyabovefullemployment.Aggregategrowthinemergingmarketanddevelopingeconomiesisprojectedtofirmfurther,withcontinuedstronggrowthin emergingAsia andEurope and amodestupswing in commodity exporters after three yearsofweakperformance.Global growth is projected to soften beyond the next couple of years.Once their outputgapsclose,mostadvancedeconomiesarepoisedtoreturntopotentialgrowthrateswellbelowpre-crisisaverages,heldbackbyagingpopulationsandlacklusterproductivity.USgrowthwillslowbelowpotentialastheexpansionaryimpactofrecentfiscalpolicychangesgoesintoreverse.Growthisprojectedtoremainsubparinseveralemergingmarketanddevelopingeconomies,includinginsomecommodityexportersthatcontinuetofacesubstantialfiscalconsolidationneeds.

Acrossemergingmarketanddevelopingeconomies,the0.4%pickupin2017growthcameprimarilyfromanaccelerationinprivateconsumption.Butthepictureismixedwithinthegroup.GrowthinChinaandIndialastyearwassupportedbyresurgentnetexportsandstrongprivateconsumption,respectively,whileinvestment growth slowed.An end to fixed investment contractions in commodity-exporting countriesthatwereseverelyaffectedbythecommoditypricedownturnduring2015–16(notablyBrazilandRussia,butalsoAngola,Ecuador,andNigeria)insteadplayedanimportantroleintheirgrowthpickupin2017.Higherfixedinvestmentgrowth(2.3%aboveits2016level)alsosupportedthegrowthperformanceofotheremergingmarketanddevelopingeconomies,alongsidestrongerprivateconsumption.

Indian Economy & Steel Sector

Following liberalization, the Indian economy is also integratedwith the global economy.As such, bothglobalanddomesticdevelopmentsareinfluencingthegrowthoftheIndianeconomy.

Theyear2018islikelytobemarkedbytheimpactoftwomajordomesticpolicydevelopments,thepassageof the Constitutional amendment, paving the way for implementing the transformational Goods andServicesTax(GST),andtheactiontodemonetisethetwohighestdenominationnotes.TheGSTwillcreatea common Indianmarket, improve tax compliance and governance, and boost investment and growth.Demonetisationhashadshort-termcostsbutholdsthepotentialforlongtermbenefits.Follow-upactionstominimizethecostsandmaximisethebenefitsinclude:fast,demand-driven,remonetisation;furthertaxreforms, includingbringing landand real estate into theGST, reducing tax rates and stampduties; andactingtoallayanxietiesaboutover-zealoustaxadministration.GDPgrowth1isexpectedtobe7.4%in2018

1 WorldEconomicOutlookUpdate,January,2018,IMF


MECON

and7.8%in2019.However,asperCentralStatisticalOrganization(CSO),GovernmentofIndia,thesecondadvanceestimateonrealGDPgrowthfor2017-18is6.6%.

Withthefillipprovidedbythecountry’spolicymechanismthrustsbackedbyastrongeconomicfoundation,arisingdomesticsupplyside,stableend-usesegments,largescaleinfrastructureinvestmentsandoptimisticeconomic projections, future prospect of Indian economy appears to be bright.Moreover,Governmentof Indiahas given special thrust on the industry and infrastructure sector as awhole by the ambitious“MAKEININDIA”programmewhich is likely toput thruston infrastructure / industrialdevelopmentandhence,huge investment isexpected insectors likesteel,power, roads, railways,ports,civilaviation,telecommunications, irrigation, drinkingwater, sanitation, storage&warehousing etc.Thiswill help inachievingarobustandinclusivegrowthinfuture.

Industrial growthmeasured by IndexNumber of Industrial Production (INIP)2 has shown recovery inApril-February,2017-18(4.3%)comparedtothesameperiodduring2016-17.Withinindustry,electricityandmanufacturingsectorsperformedbetterwithagrowthof5.2%and4.6%respectivelyduringApril-February,2017-18.Consumerdurablegrewby0.3%duringApril-February,2017-18.

Finishedsteelproductionreachedat100.7Mt2016-17registeringgrowthof11.4%comparedtosameperiodofpreviousyear.PostimpositionofMinimumImportPrice(MIP)onselectsteelproductsinFeb,2016,importsdeclinedsubstantiallyto7.2Mtwhileexportsincreasedto8.2Mt,thusmakingIndianetexporterofsteel.

DuringApril-January,2017-18,Finishedsteelproductionremainedat88.5Mt.Importwas6.4Mtandexportwas8.2Mt.

The Company’s business procurement in diversified sector has shown an improvement whereas it wasmoderateinitscoreareaofFerrousandNon-Ferroussectors.AsIndianeconomygathermomentumin2018-19andthistrendislikelytocontinueinfutureasperforecasts,thebusinessprocurementprospectforthecompanyisexpectedtobeencouragingintheforthcomingyear2018-19.

BUSINESS PROCUREMENT

Total₹inCrore

Sl. No.

SBU 2016-17 2017-18

Consultancy EPC Consultancy EPC

1. Metal 96.70 539.00 203.99 2.41

2. Energy 207.09 6.57 206.71 Nil

3. Infrastructure 39.50 529.80 122.57 467.76

Total(₹) 343.29 1075.37 533.27 470.17

GrandTotal(₹) 1418.65 1003.44

4.0. INTERNAL CONTROL SYSTEMS AND ADEQUACY THEREOF

YourCompanynot onlyhas a proper and adequate systemof internal control andproperdocumentedprocedureencompassingallfinancialandoperatingfunctionsbutalsoahistoryandtraditionbequeathedsince inception.

These have been planned to provide reasonable accuracy for maintenance of proper accounting andadequatecontroltomonitorandtogovernthecompany’sfund,tooptimizeinternalresourcesforincreasingoperationalefficiency,tosecureassetsfromunauthorizeduseandtoascertainrelianceonfinancialandallotheroperationalinformation.

Thecompanyhasundertakenunifieduntiringteamefforttoachievethebestpossiblestate-of-theartsystem.

2 QuickEstimatesofIndexofIndustrialProductionandUsebasedIndexforthemonthofFebruary,2018(Base2011-12).,releasedbyMoSPI,12thApril,2018.


MECONLIMITED 57

Salientfacetsoftheinternalcontrolsystemare:

� Welldefineddelegationofpowerwithsanctioninglimitsforpurchasingofcapitalitemsandapprovingofrevenueexpenditure.

� Wellplannedbudgetforcapital&revenueexpenditureandcontinuousmonitoring.

� WelldefinedPurchaseandDisposalProceduretocarryoutfunctionofpurchaseencompassingvariousGovernmentandCVCguidelines for in-houseprocurementaswellasprocurementof servicesandgoodsforexecutingEPCjobsandconsultancyjobs.

� WellframedMECONEstablishmentManualandServiceRulestocodifyrulesandpoliciesgoverningserviceconditionsofemployees.

� Well codified Apex Quality Manual for ensuring quality of services provided and goods sold forexecuting EPC jobs.

� Periodicalmeetingatallfunctionallevelsandalsoatcorporatelevelforreviewingandachievingthetargeted results.

� Withimplementationofonlineinformationsystemstartingfromraisingof invoicestocollectionofmoney,theentiresystemhasbeenmademoreeffectiveintermsoffurnishingfactualinformationinshortestpossibletime.

� WelldefinedplantoinvestsurplusfundmostjudiciallyandreportingthereoftotheApexmanagementregularly.

� Thecompanyhasanextensiveprogrammeofcarryingoutinternalaudits,managementandfinancialreviewstoensuregreaterefficiency,transparencyandaccountability.

� Quarterly InternalAudit reports comprisingof significantauditobservationsand follow-upactionsthereonareplacedbeforetheAuditCommitteefortheirconsiderationandreview.

5.0 DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During theyearunderreview,yourCompanyhasachieved turnoverof₹44,557.33 lakh.Turnover fromConsultancy Jobs is ₹35,198.07 lakh, Turnover from Consultancy Jobs constituted 79.00% of the totalturnoverandturnoverfromTurnkeyProjectsconstituted21.00%.Totalturnoverhasincreasedby29.93%overthepreviousyear.

Duringtheyear2017-18,yourCompanyhasmadeProfitAfterTaxof₹5,800.07lakhcomparedtoLossaftertaxof₹7,305.33lakhofthepreviousyear.

YourCompanyhasearnedinterestof₹3,563.38lakhthroughtermdepositswithscheduledbanksduringtheyear2016-17.

TheNetWorthof the companyhas increasedby ₹5,933.95 lakh compared to previous year.ThemajorhighlightsoffinancialperformanceofyourCompanyforthefinancialyear2017-18withrespecttofinancialyear2016-17arementionedbelow.

(₹inlakh)

Sl. No.

Particulars FY 2017-18

FY 2016-17(*)

a) Turnover 44,557.33 34,292.91

b) RevenuefromOperations 48,021.79 34,908.87

c) TotalIncome 58,946.41 40,709.61

d) PurchaseofEquipments&DirectExpenses 12,970.47 11,345.53

e) EmployeeBenefitExpenses 31,363.91 28,141.72


MECON

Sl. No.

Particulars FY 2017-18

FY 2016-17(*)

f) OtherExpenses 9,190.02 7,669.32

g) Profit/(Loss)BeforeTax 4,399.57 (7,735.24)

h) Profit/(Loss)AfterTax 5,800.07 (7,305.33)

i) TotalComprehensiveIncome 5,933.95 (8,342.64)

j) PropertyPlant&Equipments(Gross) 15,882.22 15,608.92

k) IntangibleAssets(Gross) 1,459.00 1,382.40

l) Financial Assets (Current and Non Current)

Investment 11.92 511.92

TradeReceivables 38,577.06 27,755.32

Loans 985.99 914.27

CashandBankBalance 58,276.68 56,217.04

OtherFinancialAssets(ExcludingBankBalance) 1,342.18 1,463.88

m) OtherAssets(CurrentandNonCurrent) 8,511.92 5,992.60

n) Financial Liabilities (Current and Non Current)

Trade Payables 20,030.10 20,012.16

OtherFinancialLiabilities(CurrentandNonCurrent) 15,789.71 13,134.07

o) OtherLiabilities(CurrentandNonCurrent) 17,705.43 15,263.24

p) NetWorth 20,543.80 14,609.85

q) ShareCapital 4,013.84 4,013.84

r) Capital Employed 12,900.64 9,001.14

(*)ThecompanyhasadoptedIndianAccountingStandard‘IndAS’from1stApril,2017andaccordingly,financialsforFY2016-17isrestatedinaccordancewithIndAS,asapplicable.

6.0 HUMAN RESOURCE DEVELOPMENT

In a knowledge-based company, Services, Processes and Business Models can be copied, but theorganizationalcompetencei.e.theHumanCapitalisuniqueinnature.Inviewofthisthemanagementlaysemphasistofocusandsustainacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise.Accordingly, ithasorganizedtrainingtowardsPerformanceManagement,CareerAdvancementthroughmultipleroleexposuresandKnowledgeManagementframework.Furtherprojectsbeingthecentreofourdeliverymechanism,managementarrangedworkshopsandtrainingsonselectionofTechnology&ProductSelectionwith respect to Energy Sector,ContractManagement in Project Execution, Project Insuranceetc.Tobringaboutanoveralldevelopmentofourfutureleaders,toenablethemtounleashpotentialfornecessarybusinessimpactalongwithtechnicalcapabilitiesaugmentation,managementorganizedtraininginSoftSkills,PersonalityandLeadershipDevelopment.

ApartfromthiswithregardtoTalentManagementandCareerProgressionemployeeswerealsodeputedtovariousCentreofExcellenceslikeIITs,IIMs,NITs,ICAIforMDPprogramsandtechnicalprogramssuchasInspiredLeadership,ProjectManagementwithApplicationSoftware,WindLoadsonTallStructures,MDP


MECONLIMITED 59

onCreativity, ProblemSolving&DecisionMaking,ContractManagement andArbitration, LeadershipCommunication&ImageManagement.

Regular Knowledge Management sessions are also conducted to effectively disseminate and utilizeorganizationalknowledge.Managementalwaysstrivestofocustowardsdevelopmentofitsemployeeswiththeobjectivethattheywillleadthecompanythroughchallengingenvironmentandensurethatsustainedvaluecreationisachieved.Withthisobjective,variousHRDactivitieswereundertakenintheFY2017-18.Managementhasachieved1787Mandaysoftraininganddevelopment(Technology–612Mandays,Skillrelated–649MandaysandSoftSkill–531Mandays)asagainstthetargetof1300Mandaysfixedforthisfinancialyear.

7.0 TECHNOLOGICAL UP-GRADATION

ByvirtueofMECON’s6(six)decadesofexperienceinthedevelopmentandexpansionofIntegratedSteelPlantsaswellasinitsotherbusinessverticals,yourCompanyhasbeenabletobuildastrongtechnologicalbaseandhasacquired, absorbed& innovated state-of-the-art technologies to suitvarious requirements.Technological&Engineeringexcellenceachievedthroughaboveprocessisup-gradedoncontinuousbasisduringexecutionofvariousprojectsinassociationwithindustryleaders.Licenseagreementsandgeneralcollaboration/cooperationagreementswithorganisationssharingcommonbusinessinterestsisprovidinganimpetusforyourCompanytostrengthenitsbusinessverticalsbycarvingoutmarketshare.Suchinitiativesarecomplementingknowledgeacquisition/up-gradationinadditiontobuilding-updatabaseforfocussedbusinessareaswiththeaimtobridgetheidentifiedtechnologygaps.Measuresadoptedtoworktowardstechnologyself-relianceinclude:

ExposuretoGlobalTechnologies&Benchmarks

Maximizationofindigenization

Exploringglobalpartnersfornew/potentialbusinessareas

Aligninginternalresourcestocatertonewareas

Engagementofdomainexpertstocomplementin-houseexpertise

In-houseResearch&Development

Needbasedtraining-bothIn-house&outsideandparticipationinseminars/technologyfairs

Useofmoderntoolsforanalysis,design,modelling&drafting

Costeffectiveoperationsachievedthroughhigherrelianceonstate-of-the-artsoftwaretools

8.0 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY DEVELOPMENT (CSR & SD)

YourCompanyhasundertakenanumberofprojects/activitiesasapartofitsCorporateSocialResponsibility&SustainabilityunderitsCSR&SustainabilityPolicy.Thedetailsoftheproject/activitiestakenupduring2017-18aregiveninAppendix-IItotheDirector’sReport.

Keepingpacewith theGovt.of India,Missionof SwachhBharat, theCompanyhas carriedout variousactivities/programmesforhighlightingthebenefitsofswachhata.Theawarenessprogramme&cleanlinessdriveunder“SwachhBharatAbhiyan”werecarried-outinadoptedvillagesunderthefollowingheads:

¾ “SwachhtaHiSewa”Campaign

¾ “SwachhtaPakhwada”Campaign

TheManagementoftheCompanyalwayslaythrustupontimelycompletionoftheCSRprojects/activitiessothatitsbenefitispassedontotheenduser.MoreovertheManagementalsolaysemphasis,thatregularon-goingschemessuchasfreeliteracyprogrammeinCommunityEducationCentre,freestitchingtrainingunderWomenEmpowermentScheme,VocationaltrainingunderVocationalTrainingScheme,freehealthcampthroughmobileambulancevanetc.shallalsobecontinuedtokeepCSR&SustainabilityactivityoftheCompanyaliveevenwhenthereislessornoallocablebudgetavailable.


MECON

ANNEXURE-III

1.0 COMPANY’S PHILOSOPHY:

TheCompany’s Corporate Governance practice is based on the principles of integrity, fairness, equity,transparency,accountabilityandcommitmenttovaluesthatgovernsrelationshipwithallitsstakeholdersandattainingmaximumlevelofenrichmentoftheenterprise.ThesaidpracticeofCorporateGovernancestemfromitsprofessionalism.MECONlaysemphasisontheproperconductofitsactivitiesandenhancethevalueofallthosewhoareassociatedwiththeCompanyviz.Shareholders,Customers,Vendors,GovernmentofIndia,MinistryofSteel,DepartmentofPublicEnterprises,variousStateGovernments,otherGovernmentAgencies/Departmentsandthesocietyatlarge.

2.0 BOARD OF DIRECTORS:

YourCompanybeingaCentralPSU,appointment/nominationofallDirectorsisdonebythePresidentof India through theMinistryofSteel.TheChairmanandManagingDirectorandFunctionalDirectorsare appointedby theGovernmentof India,Ministryof Steel for aperiodoffiveyearsor till the ageofsuperannuationoruntilfurtherorderswhicheverisearlier.Part-timeIndependentDirectorsarenormallyappointedforatenureofthreeyears.ArticlesofAssociationoftheCompanystipulatethatthenumberofDirectorsshallnotbelessthanfiveandnotmorethanthirteen.ThecompositionoftheBoardisasperDPEGuidelinesonCorporateGovernance.

Composition of Board of Directors

Sl. No

Particulars of Directors Sanctioned Strength

Actual position as on 31.03.2018

i. FunctionalDirectorsincludingCMD(WTD) 5 4ii. Part-timeGovernmentDirectors 2 2iii. Part-timeIndependentDirectors 3 1*

Total 10 7

(*)ThesanctionedstrengthofPart-timeIndependentDirectorontheBoardoftheCompanyisthree(3).OnePart-timeIndependentDirectorwasappointedbytheGovernmentofIndiaduringF.Y.2015-16.Thebalancetwo(2)postsofPart-timeIndependentDirectorarelyingvacantsinceJanuary,2014.

2.1 Terms & Conditions of appointment of Board Member :

Theterms,conditionsandtenureofappointmentofallBoardMembersaredecidedbytheGovernmentofIndia,MinistryofSteel.

2.2 Remuneration / Compensation to Board of Directors :

TheChairmanandManagingDirectorandWhole-timeDirectorsarepaidmonthlyremunerationasfixedbytheGovernmentofIndia.TheCompanybearsalltheexpenditureofthePart-timeGovernmentDirectorsandPart-timeIndependentDirectorsforattendingthemeetings.Part-timeGovernmentDirectorsarenotpaid any remuneration.

ThePart-timeIndependentDirectorsarepaidsittingfeesof₹10,000/-permeetingoftheBoard/Committeeattendedbythem.

ThedetailsofsittingfeespaidtothePart-timeIndependentDirectorduringF.Y.2017-18areasfollows.

Name of Director (Shri)

Sitting Fees (₹) Total(₹)

Board Meetings Committee Meetings

SisirKumarAppikatla 60,000 40,000 1,00,000

REPORT ON CORPORATE GOVERNANCE

Corporate Governance

MECONLIMITED 61

2.3 Board Meetings:

TheBoardmeetsstatutorilyandalsoasmanytimesasmaybewarranted.TheBoardMeetingsareconvenedaspertheCompaniesAct,2013bygivingappropriateadvancenoticeafterseekingapprovaloftheChairmanoftheBoard.DetailedagendanotesarecirculatedinadvanceaspertheCompaniesAct,2013totheBoardMembersforfacilitatingmeaningful,informedandfocuseddecisionatthemeeting.Incaseofspecialandexceptionalcircumstancesadditionalagendaitem(s)is/arealsopermittedwiththeconsentofChairmanoftheBoard.

TheBoardofDirectorsoverseesallmajoractionsproposedtobetakenbytheCompany.TheBoardalsoreviewsandapprovesthestrategicandbusinessplansincludingmonitoringcorporateperformance.

TheBoardandCommitteeMeetingsareheldnotonlyatCompany’sRegisteredOfficeatRanchi,butalsoatitsEngineeringOfficeatNewDelhi.TheCompanySecretaryactsastheSecretarytotheBoardMeetings.

2.4 Number of Board Meetings:

Duringtheyear2017-18,Six(6)Meetingswereheld,thedetailsofwhicharegivenbelow:

Sl. No.

Date of Meeting Board Strength Number of Directors Present

1 18.05.2017 7 7

2 11.07.2017 7 7

3 18.09.2017 6 6

4 05.12.2017 6 6

5 12.03.2018 7 7

6 23.03.2018 7 7

ParticularsoftheDirectors includingtheirattendanceattheBoardMeetingsfrom1stApril,2017to31st March,2018.

Name of Directors No. of Board Meetings held.

No. of Board Meetings attended

I. Whole time Directors

1. ShriAtulBhatt ChairmanandManagingDirector Six Six

2. ShriS.ChattopadhyayDirector(Project) (Upto31.08.2017) Two Two

3. ShriP.K.Sarangi Director(Technical) Six Six

4. ShriGoutamChatterjee Director(Commercial) Six Six

5. ShriSalilKumar Director(Projects) (w.e.f25.01.2018)

Two Two


MECON

Name of Directors No. of Board Meetings held.

No. of Board Meetings attended

II. Part-time Government Directors

1. ShriSaraswatiPrasad,IAS SS&FAtotheGovt.ofIndia, MinistryofSteel.

Six Six

2. ShriSyedainAbbasi,IAS, JointSecretarytotheGovt.ofIndia,MinistryofSteel. (Upto11.10.2017)

Three Three

3. ShriSunilBarthwal,IAS, JointSecretarytotheGovt.ofIndia,MinistryofSteel. (w.e.f11.10.2017)

Three Three

III. Part-time Independent Director

1. ShriSisirKumarAppikatla Six Six

3.0 BOARD COMMITTEES:

3.1 Audit Committee

TheAuditCommitteeinplaceason31.03.2018consistsofonePart-timeIndependentDirector,onePart-timeGovernmentDirectorandonewhole-timeDirector.TheChairmanoftheAuditCommitteeisaPart-timeIndependentDirector.TheAuditCommitteeason31.03.2018comprisesofthefollowingDirectors.

MembersoftheAuditCommitteeason31.03.2018are:-

Sl. No

Name of Directors Status in Audit Committee

1 ShriSisirKumarAppikatla,Director. Chairman

2 ShriSunilBarthwal,IAS, DirectorMECONandJointSecretarytoGovt.of India,MinistryofSteel.

Member

3 ShriGoutamChatterjee,Director(Commercial) Member

Role and Powers of the Audit Committee.

TheroleandpowersoftheAuditCommitteeareasperSection177oftheCompaniesAct,2013aswellastheGuidelinesonCorporateGovernanceforCPSEissuedbytheGovt.ofIndia,MinistryofHeavyIndustriesandPublicEnterprises,DepartmentofPublicEnterprises.TheCompanySecretaryactsastheSecretarytotheAuditCommittee.

Number of Audit Committee Meetings.

Duringtheyear2017-18,Three(3)Meetingswereheld,thedetailsofwhicharegivenbelow:

Sl. No

Date of Meeting Member’s Strength No. of Members Present

1 10.07.2017 Three Three




MECONLIMITED 63

ParticularsoftheDirectorsincludingtheirattendanceattheAuditCommitteeMeetingsfrom1stApril,2017to31stMarch,2018

Name of Directors Period No. of Audit Committee

Meetings held

No. of Audit Committee

Meetings attended

Shri Syedain Abbasi, IAS, Director &Chairman,

AuditCommittee

01.04.2017to11.10.2017

One One

ShriSisirKumarAppikatla,Director&MemberandlaterbecameChairmanoftheAuditCommittee

01.04.2017to31.03.2018

Three Three

ShriS.Chattopadhyay Director(Project)&Member, AuditCommittee

01.04.2017to31.08.2017

One One

ShriSunilBarthwal,IAS, Director&Member, AuditCommittee

21.11.2017to31.03.2018

Two Two

ShriGoutamChatterjee, Director(Commercial)&Member AuditCommittee

07.09.2017to31.03.2018

Two Two

3.2 Remuneration Committee

TheRemunerationCommitteewas earlier constitutedwith three Part-time IndependentDirectors.TheChairmanoftheRemunerationCommitteewasPart-timeIndependentDirector.

The tenure of appointment of all thePart-time IndependentDirectorswas completed in January, 2014.Since then only one Part-time Independent Director was appointed by the Government of India.Thereconstitution ofRemunerationCommittee is to be considered on appointment of other twoPart-timeIndependentDirectors.

3.3 Corporate Social Responsibility (CSR) and Sustainability Committee

In compliance of the provisions of Section 135 of the Companies Act, 2013 read with Guidelines onCorporateSocialResponsibilityandSustainabilityforCPSEsissuedbytheGovernmentofIndia,MinistryofHeavyIndustries&PublicEnterprises,DepartmentofPublicEnterpriseswhichcameintoforcew.e.f.01.04.2014,aBoardlevelCSR&SustainabilityCommitteewasconstituted.TheroleandfunctionsoftheCSR&SustainabilityCommitteeisasperCompanies(CorporateSocialResponsibilityPolicy)Rules2014.

ThepresentCSR&SustainabilityCommitteeinplaceason31.03.2018comprisesofthefollowingDirectors.

Sl. No.

Name of Directors (Shri) Status in CSR & Sustainability Committee

1 SunilBarthwal,IAS, DirectorandJointSecretarytoGovt.ofIndia, MinistryofSteel.

Chairman

2 SisirKumarAppikatla,Director Member

3 P.K.Sarangi,Director(Technical) Member

TheCompanySecretaryactsastheSecretarytotheCSR&SustainabilityCommittee.


MECON

Number of CSR & Sustainability Committee Meetings:

Duringtheyear2017-18,One(1)Meetingwasheld,thedetailsofwhicharegivenbelow:

Sl. No Date of Meeting Member’s Strength No. of Members Present


Particularsof theDirectors including their attendance at theCSR&SustainabilityCommitteeMeeting.

Name of Directors Period No. of CSR & Sustainability

Committee Meetings held.

No. of CSR & Sustainability

Committee Meetings attended.

ShriSyedainAbbasi,IAS, Director&Chairman, CSR&SustainabilityCommittee

01.04.2017to11.10.2017

One One

Shri.SisirKumarAppikatla, Director&Member,CSR&SustainabilityCommittee

01.04.2017to31.03.2018

One One

Shri.P.K.Sarangi, Director(Technical)&Member,CSR&SustainabilityCommittee.

01.04.2017to31.03.2018

One One

ShriSunilBarthwal,IAS Director&Chairman,CSR&SustainabilityCommittee. (w.e.f.21.11.2017)

21.11.2017to31.03.2018

Nil Nil

3.4 Part time Independent Directors Meeting

Sinceonlyonepart-timeIndependentDirectorhadsofarbeenappointedontheBoardoftheCompany,nomeetingofPart-timeIndependentDirectorswasheldduringtheperiodunderreview.

4.0 GENERAL BODY MEETING:

ThedetailsofthelastthreeAnnualGeneralMeetingofthecompanyareasfollows:-

Year Date Time Venue

2014-15 22ndSept.,2015 12.00Noon HotelRoyalPlaza,AshokRoad, NewDelhi-110107.

2015-16 22ndAug.,2016 2.00P.M BoardRoom,MECONOffice,13thFloor,SCOPEMinar,LaxmiNagar,Delhi-110092.

2016-17 21stSept.,2017 12.00Noon OUDHConferenceHall,HotelAshok,Chanakyapuri,NewDelhi.

5.0 DISCLOSURES:

5.1 Declaration of independence by Independent Director

In compliance of Sec 134(3)(d) of the CompaniesAct, 2013 the Company has obtained declaration ofindependencefromtheIndependentDirectorfortheF.Y2017-18underSection149(6)ofthesaidAct.

5.2 Related party transactions

Thereareno‘materiallysignificantrelatedpartytransactions’thatmayhaveapotentialconflictwiththeinterestofCompanyatlarge.ThedetailsofRelatedPartyDisclosureasperAS-18isdisclosedunderNote


MECONLIMITED 65

35.12oftheFinancialStatement.

5.3 Disclosure of accounting treatment

AllapplicableAccountingStandards issuedbytheInstituteofCharteredAccountantsofIndiaarebeingfollowedinthepreparationoffinancialstatements.TheSignificantAccountingPolicyoftheCompanyisdisclosedunderNote32oftheFinancialStatement.

5.4 Compliance Certificate

AcertificateoncomplianceofapplicablelawsisplacedbeforetheAuditCommitteeandBoardonquarterlybasis.

5.5 Code of Conduct

TheBoardofDirectorshaslaiddowntheCodeofBusinessConductandEthicsfortheBoardMembersandSeniorManagementoftheCompany.TheCodeisdisplayedonthewebsiteoftheCompany.AllBoardMembersandSeniorManagementofficialsofthecompanyhaveaffirmedtheircompliancewiththecode.

6.0 MEANS OF COMMUNICATION:

AnnualReport containingChairman’s Speech,Directors’Report,ManagementDiscussion andAnalysisReport,CorporateGovernanceReport,Auditor’sReport,AuditedAccountsandotherimportantinformationaremadeavailableonthewebsiteoftheCompany.

7.0 TRAINING OF BOARD MEMBERS:

Directorsarebeingnominated,asandwhenrequiredforthetrainingprogrammeorganizedbyDPE,SCOPEetc.

8.0 WHISTLE BLOWER POLICY:

TheCompanyhasestablishedWhistleBlowerPolicyinaccordancewiththerequirementofSection177(9)oftheCompaniesAct,2013andthesameisuploadedonthewebsiteoftheCompany.


MECON

TotheBoardofDirectorsofMECONLimited.

Report on the Indian Accounting Standards (Ind AS) Financial Statements

WehaveauditedtheaccompanyingIndASFinancialStatementsofMECONLimited(“the company”), whichcomprisetheBalanceSheetasat31stMarch2018,thestatementofProfitandLoss(includingOtherComprehensiveIncome),theCashFlowStatementandtheStatementofChangesinEquityfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Ind AS Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthepreparationandpresentationoftheseIndASfinancialstatements that give a true and fair view of the financial position, financial performance ( including OtherComprehensiveIncome),cashflowsandchangeinequityoftheCompanyinaccordancewiththeaccountingprinciples generally accepted in India, including the IndianAccounting Standards ( IndAS ) specified underSection133oftheCompaniesAct,2013(‘TheAct’)readwithRule7oftheCompanies(Accounts)Rules,2014.

Thisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsof the Act for safeguarding the assets of the Company and for preventing and detecting frauds and otherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgementsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationoftheIndASfinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheseIndASfinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandthematterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditoftheIndASfinancialstatementinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywiththeethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheIndASfinancialstatementsarefreefrommaterial misstatement.

AnauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsandthedisclosuresintheIndASfinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheIndASfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsiderstheinternalfinancialcontrolrelevanttothecompany’spreparationof the IndASfinancial statements that give a true and fair view in order to design audit procedures that areappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationoftheIndASfinancialstatements.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheIndASFinancialStatements.

INDEPENDENT AUDITORS’ REPORT

Independent Auditors’ Report

MECONLIMITED 67

Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidIndASfinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndiaofthestateofaffairsoftheCompanyasat31stMarch2018anditsprofit(financialperformanceincludingothercomprehensiveincome),itscashflowandthechangesinequityfortheyearendedonthatdate.

Emphasis of Matter

Wedrawattentiontothefollowing:

Note 40.23 to the Ind AS financial statements. As referred to the said note considering the DPEOM dated03.08.2017andthefinancialstatusofthecompany,provisionforwagerevision(duew.e.f.01.01.2017)inrespectofexecutiveemployeesisnotmadeduringtheyear.Further,provisionmadetowardswagerevisioninrespectofexecutiveemployeesbasedonestimateandinformationavailable,etcduringtheFY2016-17of₹628.79lakhsiswrittenbackduringtheyearFY2017-18.

Ouropinionisnotmodifiedinrespectofabovematter.

Other Matters

Thecomparativefinancial informationof theCompany for theyearended31stMarch2017and the transitiondateopeningbalancesheetasat1stApril2016includedinthesestandaloneIndASfinancialstatements,arebasedonthepreviouslyissuedstatutoryfinancialstatementspreparedinaccordancewiththeCompanies(AccountingStandards)Rules,2006(asamended)ofwhichauditedbythepredecessorauditorwhosereportfortheyearended31stMarch2016dated6thJuly2016andreportfortheyearended31stMarch2017dated14thJuly2017hasbeenauditedbyus, expressed anunmodifiedopinionon those standalonefinancial statements, as adjusted for thedifferencesintheaccountingprinciplesadoptedbytheCompanyontransitiontotheIndAS,whichhavebeenaudited by us.

Ouropinionisnotmodifiedinrespectofthesematters.

Report on Other Legal and Regulatory Requirements

1. As requiredby theCompanies (Auditor’sReport)Order, 2016 (“theOrder”) as amended, issuedby theCentralGovernmentofIndiaintermsofsubsection(11)ofSection143oftheAct,wegiveinthe“AnnexureA”astatementonthemattersspecifiedinparagraphs3and4oftheOrder,totheextentapplicable.

2. Asrequiredbysection143(5)oftheAct,theComptrollerandAuditorGeneralofIndiaissuedDirectionsandsub-directions.Wegiveourcommentthereonvide“AnnexureB”.

3. AsrequiredbySection143(3)oftheAct,wereportthat:

(a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

(b) InouropinionproperbooksofaccountsasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks.

(c) TheBalanceSheet,thestatementofProfitandLossincludingothercomprehensiveincomeandtheCashflowStatementandtheStatementofChangeinEquitydealtwithbythisreportareinagreementwiththebooksofaccount.

(d) Inouropinion,theaforesaidIndASfinancialstatementscomplywiththeIndianAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

(e) In terms ofGovt. of India,Department ofCompanies affairsNotificationNo.GSR 463(E) dated5th June 2015,Govt. Company is exempt from applicability of provision of section 164(2) of theCompaniesAct,2013.


MECON

(f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“AnnexureC”and

(g) WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014(asamended),inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous;

i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninitsIndASfinancialstatements;(ReferNoteNo.38.1)

ii. The Company has made provisions, as required under the applicable law or accountingstandardsformaterialforeseeablelossesonlongtermcontractsandthecompanydidnothaveanyderivativecontracts.

iii. TheCompanyhasnoamountthatisrequiredtobetransferredtotheInvestorEducationandProtectionFund.

ForV. Rohatgi & Co CharteredAccountants FirmRegistrationNo:000980C

Sd/- Vandana Rastogi Place:Ranchi Partner Dated:30thJuly,2018 M.NO:086956


MECONLIMITED 69

“Annexure A” to the Independent Auditors’ Report of even date on Ind AS Financial Statements of MECON LIMITED.

Report on Internal Financial Controls under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)

(i) In respect of its fixed assets:

(a) TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationofitsfixedassetsexceptinrespectofsomecaseswhereinthefixedassetsregisterandrecordsareintheprocessofupdation.

(b) ThefixedassetsoftheCompanyhavebeenphysicallyverifiedbythemanagement.Inouropinion,theperiodofverificationisreasonablehavingregardtothesizeofthecompanyandthenatureofitsbusiness.

(c) ThetitledeedsoftheImmovablePropertiesareheldinthenameoftheCompanyascertifiedbythemanagementexceptDeedofconveyanceofLandatRanchi,measuring10.25acres,valuedfor₹2.69lakhs,whichispendingsincelongforexecutionbytheGovernmentofJharkhand.

(ii) In respect of physical verification of Inventory:

(a) Theinventorieshavebeenphysicallyverifiedbythemanagementduringtheyear.

(b) Inouropinionandaccording to the informationandexplanationsgiven tous, theprocedure forphysicalverificationofinventoriesfollowedbythemanagementaregenerallyreasonableandadequateinrelationtothesizeofthecompanyandthenatureofitsbusiness.

(c) Inouropinion and according to the information and explanations given tous, the companyhasmaintainedproperrecordsofitsinventory.Nomaterialdiscrepancieshavebeennoticedonverificationbetweenthephysicalstocksandthebookrecords.

(iii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedunderSection189oftheCompaniesAct,2013andhenceclause(a)to(b)isnotapplicabletothecompany.

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgivenanyloansandguaranteesandnotmadeanyinvestmentsinrespectofSection185&186oftheCompaniesAct,2013.

(v) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotacceptedanypublicdepositsduring theyearhence clause (v) isnot applicable to theCompany.Accordingly thedirectives issuedby theRBIandprovisionsof Sections73 to76or anyother relevantprovisionsof theCompaniesAct,2013andrulesframedthereunderarenotapplicable.

(vi) Accordingtotheinformationgiventous,theCentralGovernmenthasnotprescribedmaintenanceofcostrecordsundersection148(1)oftheCompaniesAct,2013.

(vii) Accordingtotheinformationandexplanationsgiventousinrespectofstatutoryandotherdues:

a) The Company has generally been regular in depositing undisputed statutory dues, in respect ofProvidentFund,Employees’StateInsurance,Income-tax,SalesTax,ServiceTax,Goods&ServiceTax,ValueAddedTaxes,Customsduty,ExciseDuty,CessandothermaterialStatutorydueswiththeappropriateauthorities.

b) Accordingtotheinformationandexplanationsgiventous,therearenoundisputedstatutoryduesoutstandingforaperiodofmorethansixmonthsfromthedatetheybecamepayable,asperbooksofaccountsasat31stMarch,2018.


MECON

c) Accordingtotheinformationandexplanationsgiventous,therearedisputedstatutorydues,whichhavenotbeendepositedasat31stMarch2018,asgivenhereinbelow:

Name of the Statute Period to which relates Forum Amount

(₹ in Lakhs)

CentralSalesTaxAct&SalesTaxActsofvariousstates

1999-2000 STAT,AndhraPradesh. 4.41

2000-2001 STAT,AndhraPradesh 101.40

2001-2002 AndhraPradesh.HighCourt 450.88

1995-1996 CommissionerofCommercialTaxes,Ranchi 258.12




2009-2010 JharkhandCommercialTaxTribunal 27.66

1993-1994,1994-1995&1996-1997

JCCT(Appeal),Dhanbad 0.67



1996-1997 JointCommissionerofComm.Taxes, (appeal),Jamshedpur 1.92

*1994-1995 JharkhandSalesTaxTribunal 219.10

*2003-2004 Addl.Commissioner,Kolkata 16.47

2006-2007 JharkhandCommercialTaxTribunal(Appeal) 9.76

2007-2008 JharkhandCommercialTaxTribunal(Appeal) 26.16

2010-2011 J.CommissionerofCommercialTaxes,Ranchi 217.29

2011-2012 J.CommissionerofCommercialTaxes,Ranchi 535.81


2011-2012 Jt.Comm.(Appeals),Sundergarh,Rourkela 206.39

1997-1998 CommissionerofSalesTax,Cuttack 46.51

Employees Provident Fundand Misc. Provisions Act1952

2003-2004 EPF,AppellateTribunal,NewDelhi 229.70

Outoftheabovedisputedstatutorydues,inthetwocasedmarked*,provisionhasbeenmadeinthebooksofaccountsunder“ProvisionforDisputedcases–salestaxmatter.”

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,nomaterialfraudonorbythecompanyhasbeennoticedorreportedduringthecourseofouraudit.


MECONLIMITED 71

xi) Accordingtotheinformationandexplanationgiventousandbasedupontheauditprocedureperformed,thecompanyhaspaid/providedformanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionofsection197readwithScheduleVoftheCompaniesAct,2013.

xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyisnotaNidhiCompany.ThereforetheprovisionsofClause3(xii)oftheOrderarenotapplicabletotheCompany.

xiii) Inouropinionandaccording to the informationandexplanationsgiven tous,all transactionswith therelatedpartiesareincompliancewithSection177&188oftheCompaniesAct,2013andthedetailshavebeendisclosedintheFinancialStatementsasrequiredbytheapplicableaccountingstandards.

xiv) Accordingtotheinformationandexplanationsgiventousandbasedupontheauditprocedureperformed,the company has notmade any preferential allotment or private placement of shares or fully or partlyconvertibledebenturesduringtheyearunderreview.Accordingly, theprovisionsofClause3(xiv)of theOrderarenotapplicabletotheCompany.

xv) Accordingtotheinformationandexplanationsgiventousandbasedupontheauditprocedureperformed,thecompanyhasnotenteredintoanynoncashtransactionswiththedirectorsorpersonsconnectedwithhim.Accordingly,theprovisionsofClause3(xv)oftheOrderarenotapplicabletotheCompany.

xvi) Inouropinion, the company isnot required tobe registeredunder Section45-IAof theReserveBankofIndiaAct,1934andaccordingly,theprovisionsofClause3(xvi)oftheOrderarenotapplicabletotheCompany.

ForV. Rohatgi & Co CharteredAccountants FirmRegistrationNo.:000980C

Sd/- (Vandana Rastogi) Partner M.No:086956 Place:Ranchi Dated:30thJuly,2018


MECON

“ANNEXURE B” TO THE INDEPENDENT AUDITORS’ REPORT OF MECON LIMITED FOR THE YEAR 2017-18

Directions under section143(5) of Companies Act, 2013 Referred to in paragraph 2 of our report

Sn Question Reply

1. Whether the company has clear title /leasedeeds for freeholdand leasehold landrespectively? If not please state the area offreeholdandleaseholdlandforwhichtitle/leasedeedsarenotavailable

1. Wehaveexaminedthetitle/leasedeedoffreeholdandleaseholdland,whichwasmadeavailable.

2. Deed of conveyance of Land at Ranchi, measuring10.25 acres, valued for ₹ 2.69 Lakhs, is pending forexecutionbyGovt.ofJharkhand.

3. Asinformedthereisnolandunderdispute.

2. Whetherthereareanycasesofwaiver/writeoff of debts/ loans/ interest etc., if yes, thereasonthereofandamountinvolved.

NoBookDebtsoutstanding formore than threeyears iswrittenoffduringtheyear.

3. Whetherproperrecordsaremaintainedforinventorieslyingwiththirdparties&assetsreceivedasgift/grant(s)fromGovt.orotherauthorities.

Asinformedtousnoinventoryislyingwiththirdparties.Thecompanyhasnotreceivedanygiftfromgovernmentorotherauthoritiesduringtheyear.


MECONLIMITED 73

“Annexure C” to the Independent Auditors’ report of even date on Ind AS Financial Statements of MECON LIMITED.

Report on Internal Financial Controls under clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 (“the Act”)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofMECONLIMITED(“thecompany”)ason31stMarch,2018inconjunctionwithourauditoftheIndASfinancialstatementsofthecompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

The company’s management is responsible for establishing andmaintaining internal financial controls basedon the internal control over financial reporting criteria established by the company 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 to company’s policies, thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting (the “GuidanceNote”) and theStandardsonAuditing, issuedby ICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsofIndia.ThosestandardsandtheGuidanceNoterequirethatwecomplywithethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementoftheIndASfinancialstatements,whetherduetofraudorerror.

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 reasonableassurance regarding the reliabilityoffinancial reportingand thepreparationof IndASfinancial statement forexternalpurposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancialcontroloverfinancial reporting includes thosepolicies andprocedures that (1)pertain to themaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationofIndASfinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsand


MECON

expendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectontheIndASfinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting,includingthepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthatinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion, the companyhas, in allmaterial respects, an adequate internalfinancial controls systemoverfinancialreportingandsuch internalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch, 2018, based on the internal controls over financial reporting criteria established by theCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialcontrolsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

ForV. Rohatgi & Co. CharteredAccountants FirmRegistrationNumber:000980C

Sd/- Vandana Rastogi (Partner) M.No.:086956 Place:Ranchi Dated:30thJuly,2018


MECONLIMITED 75

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF MECON LIMITED FOR THE YEAR ENDED 31st MARCH 2018

ThepreparationoffinancialstatementsofMECONLimitedfortheyearended31stMarch2018inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act) is theresponsibilityof themanagementofthecompany.TheStatutoryAuditorsappointedbytheComptrollerandAuditorGeneralofIndiaunderSection139(5)oftheActareresponsibleforexpressingopiniononthefinancialstatementsunderSection143oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedunderSection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated30thJuly2018.

I, on behalf of the Comptroller andAuditor General of India, have conducted a supplementary audit of thefinancialstatementsofMECONLimitedfortheyearended31stMarch2018underSection143(6)(a)oftheAct.ThissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersoftheStatutoryAuditorsandislimitedprimarilytoinquiriesoftheStatutoryAuditorsandcompanypersonnelandaselectiveexaminationofsomeoftheaccountingrecords.

OnthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtoStatutoryAuditors’reportunderSection143(6)(b)oftheAct.

For and on behalf of the Comptroller and Auditor General of India

Place : Ranchi

Date : 24th August, 2018

(Indu Agrawal) Principal Director of Commercial Audit

& Ex-officio Member, Audit Board, Ranchi.


MECON

BALANCE SHEET AS AT 31st MARCH, 2018(₹ in lakhs)

PARTICULARS NOTE NO. AS AT 31.03.2018 AS AT 31.03.2017 AS AT 01.04.2016 I. ASSETS(1) Non-Current Assets

(a) Property, Plant and Equipment 3 7,376.11 7,916.45 8,895.31 (b) Capital Work-in-Progress 4 12.22 65.51 316.80 (c) Investment Property - - -(d) Other Intangible Assets 5 221.30 254.79 181.51 (e) Intangible Assets under

Development- - -

(f) Financial Assetsi) Investments 6 11.92 511.92 511.92 ii) Trade Receivables 7 11,972.81 9,960.54 7,266.71 iii) Loans 8 232.31 347.31 221.51 iv) Other Financial Assets 9 7,305.92 19,522.96 1.02 10,820.79 6,515.26 14,515.40

(g) Deferred Tax Assets (Net) 10 7,619.02 5,031.27 4,569.41 (h) Other Non-Current Assets 11 878.62 1,018.29 1,656.14

(2) Current Assets (a) Inventories 12 148.47 153.21 136.89(b) Financial Assets

i) Investments - - - ii) Trade Receivables 13 26,604.25 17,794.78 16,900.54 iii) Cash and Cash Equivalents 14 2,891.01 233.10 143.15 iv) Other Bank Balances 15 48,085.67 55,982.94 55,481.01 v) Loans 16 753.68 566.96 857.00 vi) Other Financial Assets 17 1,336.26 79,670.87 1,463.86 76,041.64 1,491.29 74,872.99

(c) Current Tax Assets (Net) 18 7,727.66 8,545.51 5,538.48 (d) Other Current Assets 19 7,633.30 4,974.31 4,611.95 TOTAL ASSETS 130,810.53 114,821.77 115,294.88

II. EQUITY AND LIABILITIES(A) EQUITY

(a) Equity Share Capital 20 4,013.84 4,013.84 4,013.84 (b) Other Equity 21 16,529.96 20,543.80 10,596.01 14,609.85 21,156.91 25,170.75

(B) LIABILITIES (1) Non-Current Liabilities

(a) Financial Liabilities i) Borrowings - - - ii) Trade Payables 22 7,506.19 7,234.40 5,073.19 iii) Other Financial Liabilities 23 883.33 8,389.52 4,964.92 12,199.32 3,819.38 8,892.57

(b) Provisions 24 38,050.17 33,354.16 29,393.16 (c) Deferred Tax Liabilities (Net) 10 - - - (d) Other Non-Current Liabilities 25 4,241.00 4,366.89 3,847.19

(2) Current Liabilities (a) Financial Liabilities

i) Borrowings - - - ii) Trade Payables 26 12,523.91 12,777.76 12,490.86 iii) Other Financial Liabilities 27 14,906.38 27,430.29 8,169.15 20,946.91 8,831.54 21,322.40

(b) Other Current Liabilities 28 13,464.43 10,896.35 10,684.54 (c) Provisions 29 18,691.32 18,448.29 15,984.27 (d) Current Tax Liabilities (Net) 18 - - -

TOTAL EQUITY AND LIABILITIES 130,810.53 114,821.77 115,294.88 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/- (VANDANA RASTOGI)

PARTNER Memb.No.086956

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (SEKHAR SAHA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : RanchiDate : 30th July 2018

Financial Statement

MECONLIMITED 77

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2018

(₹ in lakhs) PARTICULARS NOTE NO. Current Year Previous Year

I. Revenue from Operations 30 48,021.79 34,908.87

II. Other Income 31 10,924.62 5,800.74

III. TOTAL INCOME (I+II) 58,946.41 40,709.61

IV. EXPENSES:

(a) Purchases of Equipments & Direct Expenses 32 12,970.47 11,345.53

(b) (Accretion)/Decretion to Jobs-in-Progress 33 (78.40) 159.24

(c) Employee Benefits Expenses 34 31,363.91 28,141.72

(d) Finance Costs 35 165.90 156.68

(e) Depreciation and Amortisation Expenses 36 934.94 972.36

(f) Other Expenses 37 9,190.02 7,669.32

TOTAL EXPENSES (IV) 54,546.84 48,444.85

V. Profit/(Loss) before exceptional items and tax (III-IV) 4,399.57 (7,735.24)

VI. Exceptional Items — –

VII. Profit/(Loss) before tax (V-VI) 4,399.57 (7,735.24)

VIII. Tax Expense:

(a) Current Tax 1,187.25 –

(b) Deferred Tax (2,587.75) (461.86)

(c) Taxes relating to Earlier Years — 31.95

IX. Profit/(Loss) for the year (VII-VIII) 5,800.07 (7,305.33)

X. Other Comprehensive Income

(a) Items that will not be reclassified to Profit and Loss

Re-measurement of Defined Benefit Plans 133.88 (1,037.31)

(b) Income tax relating to items that will not be reclassified to Profit and Loss

— –

XI. Total Comprehensive Income for the year (IX+X) 5,933.95 (8,342.64)

XII. Earnings per equity share (Face Value ` 10/- each) 40.14

Basic & Diluted (`) 14.45 (18.20)

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/- (RAVI BAMBHA)

COMPANY SECRETARY


(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)


Place : Ranchi Date : 30th July, 2018


MECON

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2018

A. EQUITY SHARE CAPITAL (₹ in lakhs)

ParticularsBalance as at 1st

April, 2016

Changes in Equity Share Capital

during the year

Balance as at 31st

March, 2017

Changes in Equity Share Capital

during the year

Balance as at 31st March, 2018

Equity Share Capital 4,013.84 - 4,013.84 - 4,013.84

B. OTHER EQUITY (₹ in lakhs)

Particulars

Reserves and SurplusRe-

valuation Reserve

Other Compre-hensive Income TOTAL

Capital Redemption

Reserve

CSR Activity Reserve

General Reserve

Retained Earnings

Re-measure-ment of Defined Benefit Plans

Balance as at 1st April, 2016 6,300.00 82.55 9,852.39 4,043.14 2,218.26 (1,339.43) 21,156.91

Net Profit / (Loss) during the period - - - (7,305.33) - - (7,305.33)

Remeasurement of gains / (losses) on Defined Benefit Plans

- - - - - (1,037.31) (1,037.31)

Dividend on Equity Shares - - - - - - -

Dividend Distribution Tax - - - - - - -

Transferred from Retained Earnings during the period - - - - - - -

Transferred to Retained Earnings during the period - (67.30) - - - - (67.30)

Transferred from CSR Activity Reserve during the priod - - - 67.30 - - 67.30

Transferred to CSR Activity Reserve during the period - - - - - - -

Transferred to General Reserve - - - - - - -

Adjusted / written back on Revaluation Reserve - - - - (2,218.26) - (2,218.26)

Balance as at 31st March, 2017 6,300.00 15.25 9,852.39 (3,194.89) - (2,376.74) 10,596.01

Net Profit / (Loss) during the period - - - 5,800.07 - - 5,800.07

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 period - - - 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 2,620.43 - (2,242.86) 16,529.96






Sd/- (RAVI BAMBHA)

COMPANY SECRETARY


(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)


Place : Ranchi

Date : 30th July, 2018

Financial Statement

MECONLIMITED 79

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018 (Indirect Method)

(₹ in lakhs)

2017-18 2016-17

Cash Flows from Operating Activities

Net Profit/(Loss) before Taxation 4,399.57 (7,735.24)

Add : Adjustments for

Depreciation & Amortisation 934.94 972.36

Loss on Sale/Disposal of Fixed Assets 2.02 13.55

Provision for Bad & Doubtful Trade Receivables / ECL 639.58 198.25

Provision for impairment in the value of Investments 500.00 -

Other Provisions 926.98 695.98

Finance Costs 165.90 3,169.42 156.68 2,036.82

Less : Adjustments for

Profit on Sale/Disposal of Fixed Assets 0.69 2.20

Interest Income 3,872.74 4,427.60

Dividend Received 1.60 3,875.03 1.06 4,430.86

Operating Profit/(Loss) before Working Capital Changes 3,693.96 (10,129.28)

Add : Adjustments for

(Increase) / Decrease in Inventories 4.74 (16.33)

(Increase) / Decrease in Trade Receivables (11,461.32) (3,786.32)

(Increase) / Decrease in Loans (144.82) 142.65

(Increase) / Decrease in Other Current Financial Assets 127.60 23.78

(Increase) / Decrease in Tax Assets (369.40) (3,038.98)

(Increase) / Decrease in Other Non-Financial Assets (2,870.87) (30.25)

Increase / (Decrease) in Trade Payables 17.94 2,448.11

Increase / (Decrease) in Financial Liabilities 2,225.25 297.49

Increase / (Decrease) in Provisions 5,072.92 5,387.71

Increase / (Decrease) in Non-Financial Liabilities 2,370.25 (5,027.71) 554.71 1,982.57

Cash Generated from Operations (1,333.75) (8,146.71)

Less : Taxes Paid - -

Net Cash from Operating Activities {A} (1,333.75) (8,146.71)


MECON

2017-18 2016-17

Cash Flows from Investing Activities

Purchase of Property, Plant & Eqpt. and Intangible Assets

(312.42) (2,064.11)

Property, Plant & Eqpt. and Intangible Asset sold/discarded

3.27 19.02

(Increase) / Decrease in Deposits with Bank 154.10 5,490.56

Interest Received 4,311.01 4,949.35

Dividend Received 1.60 1.06

Net Cash from Investing Activities {B} 4,157.56 8,395.88

Cash Flows from Financing Activities

Dividend including Dividend Tax Paid - -

Finance Costs (165.90) (159.22)

Net Cash from Financing Activities {C} (165.90) (159.22)

Net Increase/(Decrease) in Cash & Cash Equivalent {A}+{B}+{C} 2,657.91 89.95

Cash and Cash Equivalent at the beginning 233.10 143.15

Cash and Cash Equivalent at the end 2,891.01 233.10


Cash & Cash Equivalent represents

i) Cash at Bank (Current A/c & Flexi Deposit A/c) 2,882.19 216.21

ii) Cheques & Drafts on hand - -

iii) Cash & Stamps on hand 8.82 2,891.01 16.89 233.10






Sd/- (RAVI BAMBHA)

COMPANY SECRETARY


(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)


Place : Ranchi


CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018 (Indirect Method) (Contd.)

(₹ in lakhs)

Financial Statement

MECONLIMITED 81

NOTE 1 : CORPORATE AND GENERAL INFORMATION

MECON LIMITED, a Government of India Enterprise under Ministry of Steel, providing engineering &consultancyservicesandexecutingturnkeyprojectsisdomiciledinIndiaandwasincorporated31stMarch,1973.TheCompanyhasitsregisteredofficesituatedatVivekanandaPath,Doranda,Ranchi–834002,Jharkhand,India.TheCompanyoperatesinthreemajorsegments,namely,Metals,Energy&Infrastructure.

Forallperiodsuptoandincludingthefinancialyearended31stMarch,2017,theCompanyprepareditsfinancialstatements in accordancewith accounting standards asnotified / amendedunderCompaniesAct, 2013/1956.Thefinancialstatementsfortheyearended31stMarch,2018arethefirstIndAScompliantfinancialstatementoftheCompany.Forthepurposeofcomparatives,financialstatementsfortheyearended31stMarch,2017arealsopreparedunderIndAS.TheprovisionsofIndAS101‘FirstTimeAdoptionofIndianAccountingStandards’hasbeenfollowedinpreparingthefirstIndAScompliantfinancialstatementoftheCompanywithitsopeningIndASBalanceSheetasofthedateoftransition,viz.,1stApril,2016.

Thesefinancialstatementsfortheyearended31stMarch,2018wereapprovedforissuebytheBoardofDirectorsoftheCompanyintheirmeetingheldon26thJuly,2018.

NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 Statement of Compliance

ThefinancialstatementsarepreparedinaccordancewithgenerallyacceptedaccountingprinciplesinIndia,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct,2013/1956andrelevantrulesasapplicable.

1.2 Basis of Measurement

Thefinancialstatementsarepreparedonagoingconcernbasisandonaccrualbasisofaccountingunderthehistoricalcostconceptexceptasotherwisementionedinthepolicy.

1.3 Functional and Presentation Currency

The amounts in financial statements and notes are presented in Indian Rupees (INR) (₹) which is thefunctionalcurrencyoftheCompany.AllfinancialinformationpresentedinINR(₹)hasbeenroundedofftothenearestINR₹inlakhswithtwodecimalplaces,exceptasotherwisestated.

1.4 Use of Estimates and Management Judgment

InpreparingthefinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedinIndia,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct2013/1956andrelevantrulesasapplicable,thecompanymakesbestestimates,assumptionsandjudgmentsthatmayaffect the reportedamountof assets and liabilities and thedisclosureof contingent assets andliabilitiesasatthereportingdateandtheamountofrevenueandexpensesduringthereportingperiod.Theestimatesand judgmentsarebasedonpreviousexperienceandother factorsconsidered reasonableandprudentinthecircumstances.Actualresultinsomecasesmaydifferfromsuchestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Anyrevisionofsuchestimatesisrecognisedduringtheperiodinwhichthesameisdetermined.

In order to enhance understanding of the financial statements, information about significant areas ofestimation,uncertaintyandcriticaljudgmentsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatementsareasfollows:

1.4.1 Revenue

Where the company recognises revenue using the percentage completionmethod, technical estimates,assessmentsandjudgmentsaremadedependinguponthenature/scope,etc.ofjob.


MECON

1.4.2 Defined Benefit Obligations

Employeebenefitobligationsaremeasuredonthebasisofactuarialassumptionswhichincludemortalityandwithdrawal rates aswell as assumptions concerning futuredevelopments indiscount rates,medicalcost trends, anticipation of future salary increase and the inflation rate.However, any changes in theseassumptionsmayhaveimpactontheresultingcalculations.

1.4.3 Provisions and Contingencies

Assessments undertaken in recognizing provisions and contingencies have been made as per the bestjudgmentbasedonthecurrentinformationasavailable.

1.5 Current and Non-Current Classification

1.5.1 All items of assets and liabilities in theBalance Sheet are classified asCurrent andNon-current as perrequirementoftheCompaniesAct,2013,asapplicable.

1.5.2 Normaloperatingcycleofthecompanyisconsidered12monthskeepinginviewpastexperienceandnatureofbusinessofthecompany.

1.5.3 TradeReceivables(i.e.duesarisingonlyfromclientsinthenormalcourseofbusiness)outstandingforaperiodexceedingsixmonthsisdeterminedaftertakingintoaccount30daysnormalcreditperiodallowedbythecompany.

1.5.4 DuesonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusinessaretreatedasTrade Payables.

2. PROPERTY, PLANT AND EQUIPMENT

2.1 Recognition

2.1.1 ItemsofProperty,PlantandEquipmentare initially recognisedat costandsubsequentlycarriedat costless accumulated depreciation and accumulated impairment losses, if any. Cost comprises any directlyattributablecostsnetoftax/dutycreditavailedandincludesborrowingcostswhichmeetcapitalizationcriteria, expenses incidental toacquisition, installation,etc.ofbringing the itemsofProperty,PlantandEquipmenttothelocationandworkingconditionforitsintendedusebutexcludestraining,administrationandoverheadcosts.

2.1.2 Deposits/payments/liabilitiesmadetowardscompensation,rehabilitation,etc.relatingtoacquisitionoflandaretreatedascostoflandintheperiodinwhichtheyoccur.

2.1.3 Items ofmajor spare parts, stand-by equipment and servicing equipmentwhichmeet the definition ofProperty,PlantandEquipmentarecapitalised.Otherwise,theyareclassifiedasinventoriesinaccordancewithIndAS–2.

2.1.4 ItemsofProperty,Plant andEquipmentpurchasedduring the year costingupto₹1,000/- each itemarechargedtorevenue.

2.1.5 Thecostofanysoftwarepurchasedalongwiththecomputerhardware,beinganintegralpartofthehardware,iscapitalizedalongwiththecostofthehardware.

2.1.6 ItemsofProperty,PlantandEquipmentheldunderfinanceleasearerecognisedasperIndAS-17.

2.1.7 AdvancespaidtowardstheacquisitionofProperty,PlantandEquipmentandoutstandingateachBalanceSheetdateareclassifiedas“CapitalAdvances”underNon-CurrentAssets.

2.2 Subsequent Costs

2.2.1 SubsequentmajorexpenditureonitemsofProperty,PlantandEquipmentfulfillingthecriteriaofrecognitionisrecognisedasanincreaseinthecarryingamountoftheitemsofProperty,PlantandEquipment.

2.2.2 Thecostsoftheday-to-dayservicingofProperty,PlantandEquipmentarerecognisedasexpensesintheStatementofProfitandLossasandwhentheyareincurred.

2.3 Derecognition

2.3.1 ItemsofProperty,PlantandEquipmentarederecognisedondisposalorwhennofutureeconomicbenefits

Financial Statement

MECONLIMITED 83

areexpectedfromitsintendeduse.Gains/lossesondisposalofanitemofProperty,PlantandEquipmentaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountofProperty,PlantandEquipment,andarerecognisedintheStatementofProfitandLoss.

2.3.2 ItemsofProperty,PlantandEquipmentheldforimmediatesaleinthepresentcondition,theirsaleishighlyprobableandtheircarryingamountwillberecoveredprincipallythroughasaletransactionareclassifiedseparatelyas“Non-CurrentAssetsHeldforSale”attheloweroftheircarryingamountandfairvaluelesscosts to sale.

2.4 Depreciation2.4.1 DepreciationonProperty,PlantandEquipmentiscommencedwhenit isavailableforintendeduseand

isprovidedforunder“Straight-LineMethod”,consideringresidualvalueof5%oftheoriginalcostoftheProperty, Plant and Equipment, over the useful life of the Property, Plant and Equipment in line withScheduleIIoftheCompaniesAct,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 Depreciationonsubsequentcostofan itemofProperty,PlantandEquipmentcapitalized is chargedoffprospectivelyovertheremainingusefullifeofmainitemofProperty,PlantandEquipment.

2.4.7 DepreciationonProperty,PlantandEquipmentwhichisdeclaredidleorretiredfromactiveuse,butnotclassifiedasheldforsaleinaccordancewithIndAS–105,ischargedoffovertheremainingusefullifeofthatProperty,PlantandEquipment.

2.4.8 DepreciationonProperty,PlantandEquipmentisceasedattheearlierof,thedatethattheassetisclassifiedasheldforsaleinaccordancewithIndAS–105andthedatethattheassetisde-recognised.

2.5 Capital Work-In-ProgressThecostofconstructionofProperty,PlantandEquipmentsincurredtilltheyarereadyfortheirintendedusearerecognisedasCapitalWork-in-Progress.

3. INTANGIBLE ASSETS

3.1 Recognition

3.1.1 Expenditure incurred on acquisition of technical know-how, engineeringmaterials, computer software(whichisnotanintegralpartofrelatedhardware),etc.istreatedasintangibleasset.

3.1.2 IntangibleassetsthatareacquiredbytheCompany,whichhavefiniteusefullives,arerecognisedatcost.Subsequentmeasurementisdoneatcostlessaccumulatedamortizationandaccumulatedimpairmentlosses,ifany.Costincludesanydirectlyattributableexpensesnecessarytomaketheassetsreadyforitsintendedusebutexcludestraining,administrationandoverheadcosts.

3.1.3 Expenditureincurredonresearch&developmentactivitiesareaccountedasexpensesintheStatementofProfitandLoss.

3.2 Derecognition

Anintangibleasset isderecognisedwhenno futureeconomicbenefitsareexpected fromtheir intendeduse or upon their disposal.Gains / losses on disposal of an itemof intangible asset are determined bycomparingtheproceedsfromdisposalwiththecarryingamountofintangibleassetsandarerecognisedintheStatementofProfitandLoss.


MECON

3.3 Amortisation3.3.1 Amortisationiscommencedfromthedatetheintangibleassetisavailableforintendeduse.

3.3.2 Expenditureincurredonacquisitionofsoftwareisamortisedonstraightlinemethodoveraperiodoffiveyearsoritslicenseperiod,whicheverisless.However,softwareindividuallycostingupto₹5,00,000/-eachisfullyamortisedintheyearofacquisition.

3.3.3 Expenditureincurredonacquisitionofotherintangibleassetsisamortisedoveraperiodoffiveyearsonstraightlinemethod.

4. BORROWING COST4.1 BorrowingcostsincurredbytheCompanywhicharedirectlyattributabletotheacquisition,constructionor

productionofaqualifyingassetarecapitalizedaspartofthecostofthatasset.

4.2 Otherborrowingcostsarerecognisedasexpenseintheperiodinwhichtheseareincurred.

5. IMPAIRMENT OF NON-FINANCIAL ASSETSThecompanyreviewsthecarryingamountofitsnon-financialassets,whenevercircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverable.Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognisedismeasuredbytheamountbywhichthecarryingamountoftheassetsexceedsthehigherofitsfairvaluelesscoststosellanditsvalueinuse.Ifitisfoundthatsomeoftheimpairmentlossesalreadyrecognisedneedtobereversed,thesamearerecognisedintheStatementofProfit&Lossintheyearofreversal.

6. INVENTORIES6.1 Closingstockofstores&spares,printing&stationeryitemsandotherconsumablesarevaluedatlowerof

cost,onFirstinFirstOut(FIFO)basis,andnetrealisablevalue.Consumptionoftheaboveitemsduringthereportingperiodisarrivedatbydeductingthevalueofphysicalstockinhandasonthereportingdatefromtheaggregatevalueofopeningstockandpurchasesduringthereportingperiod.

However,spareparts,equipments,etc.arenotconsideredasinventorywhenitisrequiredtobecapitalizedasperIndAS-16.

6.2 Provisionforobsolescent/surplus/non-movinginventoryismadebasedonbestestimatesofnetrealisablevalueofsuchinventories.

7. FOREIGN CURRENCY TRANSACTION AND TRANSLATION7.1 ForeigncurrencytransactionsaretranslatedintothefunctionalcurrencyoftheCompanyusingtheexchange

rateprevailingatthedateofthetransactionsasapplicable.7.2 Monetaryassetsandliabilitiesdenominatedinforeigncurrencyaretranslatedatthefunctionalcurrency

rateofexchangeatthereportingdateasapplicable.ExchangedifferencesarisingonsettlementortranslationofmonetaryitemsarerecognisedintheStatementofProfitandLossintheyearinwhichitarises.

7.3 Non-monetaryassetsandliabilitiesdenominatedinforeigncurrencyandmeasuredathistoricalcostaretranslatedusingtheexchangerateatthedateofthetransactionasapplicable.

8. REVENUE RECOGNITIONThe Company derives its revenue from design, engineering & consultancy services, execution of EPCprojects/constructioncontracts,projectmanagement&consultancyservicesandotherincome.Revenuefromotherincomecomprisesinterestondepositswithbanks/financialinstitutions/employees,dividendfrominvestments,othermiscellaneousincome,etc.

8.1 Engineering / Consultancy Services

8.1.1 Income fromEngineering&Consultancyservices rendered to theclientsagainstcontractsorLettersofIntentorWorkordersorexchangeof letterswhichstipulate lumpsumfee is recognisedon thebasisoftechnicalestimateofpercentageofprogressachievedattheendofthereportingperiodconsideringthepre-determinedthresholdlimitonthebasisofvalueofrespectivejobs.Revenueisrecognisedon90%ofactualpercentageofprogressachievedattheendofthereportingperiodandthebalance10%istakenintoaccountintheyearinwhich100%ofprogressisachieved.

Financial Statement

MECONLIMITED 85

8.1.2 Incomefromservicesrenderedotherthanlumpsumfeebasis(includingreimbursablejobs)isrecognisedat100%valueoftheinvoicesraisedduringthereportingperiod.

8.2 Execution of Projects / Construction Contracts8.2.1 Incomefromexecutionofprojects/constructioncontracts(includingsaleofspares)fortheclientsagainst

contractsorlettersofintentorworkordersorexchangeofletterswhichstipulatefixedpriceisrecognisedonthebasisofpercentageofprogressachievedduringthereportingperiod.

8.2.2 Incomefromcostplusconstructioncontracts/depositworkswithturnkeyscopeisrecognisedtotheextentofamountbilledand/orbillableduringthereportingperiodonthebasisofcontractsorlettersofintentorworkordersorexchangeoflettersreceivedfromclients.

8.2.3 Income on account of escalation, additional or extra claims and othermiscellaneous items like projectinsuranceclaimsisrecognisedat100%valueasandwhentheyareadmitted.

8.3 Incaseswhereminimumundisputedtermsareagreedtobytheclient,incomeisaccountedforonthebasisofsuchundisputedterms.

8.4 Others

DividendincomefromInvestmentsisrecognisedasandwhentherighttoreceivethepaymentisestablished.

9. JOB-IN-PROGRESS

9.1 ForlumpsumfeeEngineering&Consultancyjobs,wheretheprogressachievedinrespectofajobisbelowthe pre-determined threshold limit, lower of cost or value of theworkdone, computed on the basis oftechnicalestimateof90%ofthepercentageofprogressachieved,iscarriedforwardunderJob-in-Progress.

9.2. WheretheworkisstartedonthebasisofjoballottedbyLOI/anyothercommunicationfromtheclient,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

The Company has post-retirement defined benefit plans comprising Retirement Gift, Post-RetirementSettlementBenefits,Post-RetirementMedicalBenefits,GratuityandProvidentFundtotheextentofinterestliabilityonprovidentfundcontribution.

Employeebenefitsexpensesunderpost-retirementdefinedbenefitplansarerecognisedbasedontheactuarialvaluationasperIndAS–19asattheendofthereportingperiodusingtheprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinothercomprehensiveincomeintheperiodinwhichtheyarise.

10.2 Other Long-Term Employee Benefits

Otherlong-termemployeebenefitsunderdefinedbenefitplanscomprisesofleaveencashment,long-serviceaward,leavetravelconcession/leavetravelassistanceandemployeefamilybenefitschemes.

Employee benefits under other long-term defined benefit plans are recognised based on the actuarialvaluationasattheendofthereportingperiodusingtheprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinprofitandlossintheperiodinwhichtheyarise.

10.3 Short-Term Employee Benefits

Short-termbenefitscompriseofemployeecostssuchassalaries,bonus,etc.areaccruedintheyearinwhichtheassociatedservicearerenderedbyemployees.


MECON

10.4 Termination Benefits

Expensesarerecognisedforterminationbenefits(includingVoluntaryRetirementCompensation)intheperiodinwhichitisincurred.

11. MATERIAL PRIOR PERIOD ERRORS

11.1 Anyexpenditureorincomewhichexceeds0.5%ofturnoverineachcase,whichariseinthecurrentperiodasaresultoferrorsoromissionsinthepreparationoffinancialstatementsofoneormorepriorperiods,aretreated as material prior period errors.

11.2 Materialpriorperioderrorsarecorrectedretrospectivelybyrestatingthecomparativeamountsforthepriorperiodspresentedinwhichtheerroroccurred.Iftheerroroccurredbeforetheearliestperiodpresented,theopeningbalancesofassets,liabilitiesandequityfortheearliestperiodpresented,arerestated.

11.3 Apriorperioderrorshallbecorrectedbyretrospectiverestatementexcepttotheextentthatitisimpracticabletodetermineeithertheperiod-specificeffectsorthecumulativeeffectoftheerror.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

12.1 Provisions for estimated liabilitiesonaccountof guarantees&warranties etc. in respectofEngineering&Consultancy Services andTurnkeyContracts aremade by the company after assessment of risk andconsequentialprobableliabilitiesoncasetocasebasis.

12.2 Provisionsforliquidateddamagesaremadeasandwhenthesearedeductedand/orconsidereddeductiblebytheclientaspercontract.

12.3 Suppliers’/contractors’claimsforpriceescalation,additionalorextraclaims,etc.areaccountedfortotheextentsuchclaimsareacceptedbythecompany.

12.4 Wheretheeffectoftimevalueofmoneyismaterial,provisionsaredeterminedandmaintainedbydiscountingtheexpectedfuturecashflows,whereverapplicable.

12.5 ContingentLiabilities/ContingentAssetsaredisclosedonthebasisofbestjudgment.Thesearereviewedateachbalancesheetdateandareadjustedtoreflectthecurrentestimate.

13. INCOME TAXES

13.1 Incometaxexpensecomprisescurrentanddeferredtax.Currenttaxexpenseisrecognisedinthestatementofprofitand lossexcept to theextent that it relates to itemsrecogniseddirectly inothercomprehensiveincome(OCI)orequity,inwhichcaseitisrecognisedinOCIorequity.

13.2 Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted orsubstantivelyenactedandasapplicableatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

13.3 Deferredtaxisrecognisedusingthebalancesheetmethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtotemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedbythereportingdate.Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthority.

13.4 Deferredtax isrecognised inthestatementofprofitand lossexcept totheextent that itrelates to itemsrecogniseddirectlyinOCIorequity,inwhichcaseitisrecognisedinOCIorequity.

13.5 Deferredtaxassetsarerecognisedtotheextentthatitisprobablethattheunderlyingtaxloss,unusedtaxcreditsordeductibletemporarydifferencewillbeutilisedagainstfuturetaxableincome.ThisisassessedbasedontheCompany’sforecastoffutureoperatingresults,adjustedforsignificantnon-taxableincomeandexpensesandspecificlimitsontheuseofanyunusedtaxlossorcredit.

13.6 Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatit isnolongerprobablethattherelatedtaxbenefitwillberealized.

13.7 Additionalincometaxesthatarisefromthedistributionofdividendsarerecognisedatthesametimethattheliabilitytopaytherelateddividendisrecognised.

Financial Statement

MECONLIMITED 87

14. LEASES

14.1 Company as a Lessee

14.1.1 Finance Lease

Assetacquiredonleasewheresubstantiallyalltherisksandrewardsincidentaltoownershiparetransferredbythelessortothecompanyisclassifiedunderfinancelease.Attheinceptionofthelease,financeleaseisrecordedatamountequaltothefairvalueoftheleasedassetor,iflower,thepresentvalueoftheminimumlease payments.

TheinterestelementofleasepaymentsischargedtoStatementofProfitandLoss,asfinancecostsovertheperiodofthelease.

14.1.2 Operating Lease

Assetacquiredonleasewhereasignificantportionofriskandrewardsofownershipareretainedbythelessorisclassifiedunderoperatinglease.LeaserentalarechargedtoStatementofProfitandLossonstraight-linebasisexceptwherescheduledincreaseinrentcompensatethelessorforexpectedinflationarycosts.

14.2 Company as a Lessor

14.2.1 Operating Lease

Asset given on lease where the Company does not transfer substantially all the risks and rewards ofownershipoftheassetisclassifiedunderoperatinglease.ReceiptsunderoperatingleasearerecognizedintheStatementofProfitandLossonstraightlinebasisovertheleasetermexceptwherescheduledincreaseinrentcompensatestheCompanywithexpectedinflationarycosts.

15. DIVIDENDS

DividendspayabletotheshareholdersoftheCompanyarerecognisedaschangesinequityintheperiodinwhichtheyareapprovedbytheBoardofDirectorsandtheShareholder’sMeetingrespectively.

16. STATEMENT OF CASH FLOWS

StatementofCashFlowsispreparedunder“IndirectMethod”inaccordancewithIndAS–7“StatementofCashFlows”.

17. FINANCIAL INSTRUMENTS

Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.

17.1 Financial Assets

17.1.1 Initial Recognition

Financialassetsarerecognisedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionofthefinancialassetisalsoadjusted.

17.1.2 Subsequent Measurement

Subsequenttoinitialrecognition,allfinancialassetsaremeasuredeitheratamortisedcostoratfairvalue.Wherefinancialassetsaremeasuredatfairvalue,gainsandlossesarerecognisedentirelyinprofitandloss(fairvaluethroughprofitandloss,FVTPL).

Effectiveinterestrate(EIR)methodformeasurementisusedforfinancialassetsmeasuredatamortisedcost.Theeffectiveinterestrate(EIR)amortizationisincludedinthefinanceincomeintheprofitandloss.

Equityinvestmentsinsubsidiariesandjointventuresaremeasuredatcost.

17.1.3 Derecognition

Afinancialassetisprimarilyderecognisedwhentherighttoreceivecashflowsfromthefinancialassethasexpiredorthecompanyhastransferreditsrightstoreceivecashflowsfromthefinancialasset.


MECON

17.1.4 Impairment of financial assets

Trade Receivables

AsapracticalexpedienttheCompanyhasadopted‘simplifiedapproach’usingtheprovisionmatrixmethodforrecognitionofexpectedlossontradereceivables.

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 liabilities are recognised initially at fair value and transaction cost that is attributable to theacquisitionoffinancialliabilitiesisalsoadjusted.

17.2.2 Subsequent measurement

Financial liabilities are subsequentlymeasured at amortized cost using the effective interest rate (EIR)method.GainsandlossesarerecognisedinprofitandlosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortizationprocess.

17.2.3 Derecognition

Afinancial liability isderecognisedwhentheobligationunder the liability isdischargedorcancelledorexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.Thedifferenceintherespectivecarryingamountsisrecognisedinthestatementofprofitandloss.

17.3 Offsetting of Financial Instruments

Financialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealizetheassetandsettletheliabilitysimultaneously.Thelegallyenforceablerightmustnotbecontingentonfutureeventsandmustbeenforceableinthenormalcourseofbusinessandintheeventofdefault,insolvencyorbankruptcyofthecounterparty.

Financial Statement

MECONLIMITED 89

NO

TE

3.1

- P

RO

PER

TY,

PLA

NT

AN

D E

QU

IPM

ENT

(G

ENER

AL)

As

on

31st

Mar

ch

, 201

8

(₹ in

lakh

s)

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

just

-m

ent

Inte

r-

Hea

d Ad

just

-m

ent

Adju

st. /

W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

As o

n 31

.03.

18As

on

01.0

4.17

On

Sale

/ Ad

just

-m

ent

Inte

r-

Hea

d Ad

just

-m

ent

Adju

st.

/ W

rite

Back

of

Rev

alua

tion

Res

erve

Dur

ing

the

perio

d

Upt

o 31

.03.

18

As o

n 31

.03.

18

As o

n 31

.03.

17

1.La

nd63

.93

--

--

63.9

3-

--

--

-63

.93

63.9

3

2.Bu

ildin

g -

Free

hold

2,59

5.03

22.7

5-

(186

.53)

-2,

431.

251,

011.

85-

(69.

21)

-11

1.67

1,05

4.31

1,37

6.94

1,58

3.18

- L

ease

hold

185.

11-

--

-18

5.11

60.8

8-

--

3.32

64.2

012

0.91

124.

23

3.R

oad,

Brid

ges

&

Culv

erts

0.55

--

--

0.55

0.53

--

--

0.53

0.02

0.02

4.W

ater

Sup

ply

and

Sew

erag

e36

.17

--

--

36.1

711

.03

--

-2.

1213

.15

23.0

225

.14

5.Fu

rnitu

re &

Fi

xtur

es1,

119.

790.

930.

17-

-1,

120.

5579

5.46

0.17

--

60.6

085

5.89

264.

6632

4.33

6.M

otor

Veh

icle

s67

.74

--

--

67.7

433

.62

--

-7.

2140

.83

26.9

134

.12

7.O

ffice

Equ

ipm

ents

952.

8119

.41

5.34

--

966.

8865

0.52

4.44

--

85.4

073

1.48

235.

4030

2.29

8.Co

mpu

ter

Har

dwar

e2,

327.

1314

.45

6.64

--

2,33

4.94

1,89

5.98

4.28

--

179.

122,

070.

8226

4.12

431.

15

9.La

bora

tory

Eq

uipm

ents

591.

85-

0.14

--

591.

7137

4.57

--

-28

.81

403.

3818

8.33

217.

28

10.

Elec

tric

al

Inst

alla

tion

1,26

5.47

86.1

53.

51-

-1,

348.

1166

1.09

2.32

--

98.7

175

7.48

590.

6360

4.38

11.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y20

9.50

0.83

0.01

--

210.

3219

7.59

--

-2.

0319

9.62

10.7

011

.91

TOTA

L9,

415.

0814

4.52

15.8

1(1

86.5

3)-

9,35

7.26

5,69

3.12

11.2

1(6

9.21

)-

578.

996,

191.

693,

165.

573,

721.

96

Cont

d...


MECON

As

on

31st

Mar

ch

, 201

7

(₹ in

lakh

s)

Sl.

No.

Part

icul

ars

COST

D

EPR

ECIA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

16

Addi

tion/

Ad

just

-m

ent

Sale

/ Ad

just

-m

ent

Inte

r-

Hea

d Ad

just

-m

ent

Adju

st. /

W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

As o

n 31

.03.

17

As o

n 01

.04.

16

On

Sale

/ Ad

just

-m

ent

Inte

r-

Hea

d Ad

just

-m

ent

Adju

st.

/ W

rite

Back

of

Rev

alua

tion

Res

erve

Dur

ing

the

perio

d

Upt

o 31

.03.

17

As o

n 31

.03.

17

As o

n 01

.04.

16

1.La

nd26

6.79

--

-20

2.86

63.9

3-

--

--

-63

.93

266.

79

2.Bu

ildin

g -

Free

hold

3,50

1.80

38.4

64.

98(4

9.40

)89

0.85

2,59

5.03

1,14

8.15

-(2

8.05

)21

7.89

109.

641,

011.

851,

583.

182,

353.

65

- L

ease

hold

185.

11-

--

-18

5.11

57.5

7-

--

3.31

60.8

812

4.23

127.

54

3.R

oad,

Brid

ges

&

Culv

erts

0.55

--

--

0.55

0.53

--

--

0.53

0.02

0.02

4.W

ater

Sup

ply

and

Sew

erag

e36

.17

--

--

36.1

78.

91-

--

2.12

11.0

325

.14

27.2

6

5.Fu

rnitu

re &

Fi

xtur

es1,

067.

7454

.46

2.41

--

1,11

9.79

706.

672.

36-

-91

.15

795.

4632

4.33

361.

07

6.M

otor

Veh

icle

s56

.84

10.9

10.

01-

-67

.74

26.0

20.

01-

-7.

6133

.62

34.1

230

.82

7.O

ffice

Equ

ipm

ents

926.

7462

.87

36.8

0-

-95

2.81

605.

4934

.30

--

79.3

365

0.52

302.

2932

1.25

8.Co

mpu

ter

Har

dwar

e2,

359.

2121

2.12

244.

20-

-2,

327.

131,

902.

7522

7.23

--

220.

461,

895.

9843

1.15

456.

46

9.La

bora

tory

Eq

uipm

ents

575.

9215

.93

--

-59

1.85

346.

48-

--

28.0

937

4.57

217.

2822

9.44

10.

Elec

tric

al

Inst

alla

tion

1,20

6.33

73.0

813

.94

--

1,26

5.47

567.

388.

07-

-10

1.78

661.

0960

4.38

638.

95

11.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y20

6.60

2.91

0.01

--

209.

5019

3.80

0.01

--

3.80

197.

5911

.91

12.8

0

TOTA

L10

,389.8

047

0.74

302.

35(4

9.40

)1,

093.

719,

415.

085,

563.

7527

1.98

(28.

05)

217.

8964

7.29

5,69

3.12

3,72

1.96

4,82

6.05

Financial Statement

MECONLIMITED 91

NOTE 3.2 - INFORMATION REGARDING GROSS BLOCK OF PROPERTY, PLANT AND EQUIPMENT (GENERAL) AND ITS ACCUMULATED DEPRECIATION UNDER PREVIOUS GAAP IS AS FOLLOWS:

(₹ in lakhs)

Sl. No. Particulars

Gross Block as on

01.04.16

Accumulated amortisation

as on 01.04.16

Net Carrying Amount as on 01.04.16

(Deemed Cost)

Ind AS adjustments as

on 01.04.16

Opening Balance as

on 01.04.16

1. Land 266.79 – 266.79 – 266.79

2. Building-Freehold 3,501.80 1,148.15 2,353.65 – 2,353.65

-Leasehold 185.11 57.57 127.54 – 127.54

3. Road,Bridges&Culverts 0.55 0.53 0.02 – 0.02

4. WaterSupplyandSewerage 36.17 8.91 27.26 – 27.26

5. Furniture&Fixtures 1,066.95 706.59 360.36 0.71 361.07

6. MotorVehicles 56.84 26.02 30.82 – 30.82

7. OfficeEquipments 897.92 592.97 304.95 16.30 321.25

8. Computer Hardware 2,346.57 1,903.10 443.47 12.99 456.46

9. LaboratoryEquipments 551.89 345.94 205.95 23.49 229.44

10. ElectricalInstallation 1,205.78 567.35 638.43 0.52 638.95

11. Misc.ArticlesincludingLibrary 206.60 193.80 12.80 - 12.80

TOTAL 10,322.97 5,550.93 4,772.04 54.01 4,826.05


MECON

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

In-

ter-

Hea

d Ad

-ju

st-m

ent

Adju

st.

/ W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

As o

n 31

.03.

18

As o

n 01

.04.

17

On

Sale

/ Ad

just

-m

ent

In-

ter-

Hea

d Ad

just

-m

ent

Adj

ust.

/ W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

Dur

ing

the

perio

d

Upt

o 31

.03.

18

As

on

31.0

3.18

A

s on

31

.03.

17

1.La

nd19

7.46

--

--

197.

46-

--

--

-19

7.46

197.

46

2.Bu

ildin

g3,

868.

132.

45-

186.

53-

4,05

7.11

832.

98-

69.2

1-

68.4

197

0.60

3,08

6.51

3,03

5.15

3.R

oad,

Brid

ges

& C

ulve

rts

318.

12-

--

-31

8.12

228.

81-

--

62.9

029

1.71

26.4

189

.31

4.W

ater

Sup

ply

and

Sew

erag

e28

3.35

--

--

283.

3516

7.39

--

-10

.10

177.

4910

5.86

115.

96

5.Fe

nces

82.2

0-

--

-82

.20

78.0

9-

--

-78

.09

4.11

4.11

6.Pl

ant &

Eq

uipm

ents

489.

441.

18-

--

490.

6225

9.71

--

-25

.27

284.

9820

5.64

229.

73

7.Fu

rnitu

re &

Fi

xtur

es11

2.65

1.52

--

-11

4.17

72.5

7-

--

7.28

79.8

534

.32

40.0

8

8.M

otor

Veh

icle

s1.

010.

04-

--

1.05

0.80

--

-0.

080.

880.

170.

21

9.O

ffice

Eq

uipm

ents

31.1

70.

42-

--

31.5

919

.89

-(0

.46)

-2.

9322

.36

9.23

11.2

8

10.

Com

pute

r H

ardw

are

16.5

93.

61-

--

20.2

07.

77-

--

3.00

10.7

79.

438.

82

11.

Elec

tric

al

Inst

alla

tion

787.

5013

5.37

--

-92

2.87

325.

40-

0.46

-65

.89

391.

7553

1.12

462.

10

12.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y

6.22

--

--

6.22

5.94

-–

--

5.94

0.28

0.28

TOTA

L6,

193.

8414

4.59

-18

6.53

-6,

524.

961,

999.

35-

69.2

1-

245.

862,

314.

424,

210.

544,

194.

49

NO

TE

3.3

- P

RO

PER

TY,

PLA

NT

AN

D E

QU

IPM

ENT

(SO

CIA

L A

MEN

ITIE

S)A

s o

n 3

1st M

arc

h, 2

018

(₹ in

lakh

s)

Cont

d...

Financial Statement

MECONLIMITED 93

Sl.

No.

Part

icul

ars

COST

D

EPR

ECIA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

16

Addi

tion/

Ad

just

-m

ent

Sale

/ Ad

-ju

stm

ent

In-

ter-

Hea

d Ad

just

-m

ent

Adju

st.

/ W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

As o

n 31

.03.

17

As o

n 01

.04.

16

On

Sale

/ Ad

just

-m

ent

In-

ter-

Hea

d Ad

just

-m

ent

Adj

ust.

/ W

rite

Back

of

Rev

al-

uatio

n R

eser

ve

Dur

ing

the

perio

d

Upt

o 31

.03.

17

As

on

31.0

3.17

A

s on

01

.04.

16

1.La

nd1,

380.

375.

09-

-1,

188.

0019

7.46

--

--

--

197.

461,

380.

37

2.Bu

ildin

g2,

711.

151,

455.

49-

49.4

034

7.91

3,86

8.13

913.

47-

28.0

519

3.47

84.9

383

2.98

3,03

5.15

1,79

7.68

3.R

oad,

Brid

ges

& C

ulve

rts

318.

12-

--

-31

8.12

165.

91-

--

62.9

022

8.81

89.3

115

2.21

4.W

ater

Sup

ply

and

Sew

erag

e28

3.00

0.35

--

-28

3.35

157.

29-

--

10.1

016

7.39

115.

9612

5.71

5.Fe

nces

82.2

0-

--

-82

.20

78.1

00.

01-

--

78.0

94.

114.

10

6.Pl

ant &

Eq

uipm

ents

430.

3159

.13

--

-48

9.44

236.

40-

--

23.3

125

9.71

229.

7319

3.91

7.Fu

rnitu

re &

Fi

xtur

es11

0.48

2.57

0.40

--

112.

6566

.49

0.40

--

6.48

72.5

740

.08

43.9

9

8.M

otor

Veh

icle

s1.

01-

--

-1.

010.

77-

--

0.03

0.80

0.21

0.24

9.O

ffice

Eq

uipm

ents

28.4

62.

71-

--

31.1

716

.82

--

-3.

0719

.89

11.2

811

.64

10.

Com

pute

r H

ardw

are

47.2

40.

11-

(30.

76)

-16

.59

7.72

0.01

(2.6

5)-

2.71

7.77

8.82

39.5

2

11.

Elec

tric

al

Inst

alla

tion

588.

6318

1.34

-17

.53

-78

7.50

269.

02(0

.01)

1.66

-54

.71

325.

4046

2.10

319.

61

12.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y

6.22

--

--

6.22

5.94

--

--

5.94

0.28

0.28

TOTA

L 5

,987

.19

1,7

06.7

9 0

.40

36.

17

1,5

35.9

1 6

,193

.84

1,9

17.9

3 0

.41

27.

06

193

.47

248

.24

1,9

99.3

5 4

,194

.49

4,0

69.2

6

As

on

31st

Mar

ch

, 201

7

(₹ in

lakh

s)


MECON

NOTE 3.4 - INFORMATION REGARDING GROSS BLOCK OF PROPERTY, PLANT AND EQUIPMENT (SOCIAL AMENITIES) AND ITS ACCUMULATED DEPRECIATION UNDER PREVIOUS GAAP IS AS FOLLOWS:]

(₹ in lakhs)

Sl. No. Particulars

Gross Block as on

01.04.16

Accumulated amortisation

as on 01.04.16

Net Carrying Amount as on 01.04.16

(Deemed Cost)

Ind AS adjustments as

on 01.04.16

Opening Balance as on

01.04.16

1. Land 1,380.37 - 1,380.37 - 1,380.37

2. Building 2,710.66 898.25 1,812.41 (14.73) 1,797.68

3. Road,Bridges&Culverts

318.12 165.91 152.21 - 152.21

4. WaterSupplyandSewerage

283.00 157.29 125.71 - 125.71

5. Fences 82.20 78.10 4.10 - 4.10

6. Plant&Equipments 423.60 236.33 187.27 6.64 193.91

7. Furniture&Fixtures 110.48 66.49 43.99 - 43.99

8. MotorVehicles 1.01 0.77 0.24 - 0.24

9. OfficeEquipments 28.46 16.82 11.64 - 11.64

10 Computer Hardware 46.87 7.60 39.27 0.25 39.52

11. ElectricalInstallation 586.30 269.00 317.30 2.31 319.61

12. Misc.ArticlesincludingLibrary

6.22 5.94 0.28 - 0.28

TOTAL 5,977.29 1,902.50 4,074.79 (5.53) 4,069.26

NOTE 3.5 - 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.Deedofconveyancefor landmeasuring118.53acreshasbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimitedon1stAugust,2016.Balancelandmeasuring0.42acreshasbeenreleasedandhandedovertoGovernmentofJharkhandforroadpurpose.Outofthelandmeasuring118.53acresexecutedinfavourofMECONLimited,21.06acreshavebeenallottedtoSteelAuthorityofIndiaLimited(SAIL),Research&DevelopmentCentreforIron&Steel(RDCIS),Ranchiin1980-81forwhichtransferdeedisstillpending.Theamountreceived/receivableforsuchtransferhasbeentakenintheaccounts.

(ii) UnderSection7ofPublicSectorIron&SteelCompanies(Restructuring)andMiscellaneousProvisionsAct,1978,landmeasuring10.25acresfortheadministrativebuildingacquiredbytheGovernmentofIndiafor the erstwhileHindustan Steel Limited (HSL)was transferred in favour ofMECONLimited by the

Financial Statement

MECONLIMITED 95

GazetteNotificationdated30.4.1978.DeedofconveyanceinthisrespecthasnotyetbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimited.GovernmentofJharkhandhasbeenapproachedfordeedofconveyanceinfavourofMECONLimitedandthematterisinprogress.

(iii) DeedofconveyancehasbeenexecutedinfavourofMECONLimitedbyGovernmentofJharkhandon1st August,2016forlandmeasuring103.33acresfortownshipatRanchiacquiredfromGovt.ofBiharbytheCompanyin1978-79.Outofthelandmeasuring103.33acres,transferdeedinfavourofSteelAuthorityofIndiaLimited(SAIL),Research&DevelopmentCentreforIron&Steel(RDCIS),Ranchifor7.43acresof landandinfavourofSteelAuthorityofIndiaLimited(SAIL),ManagementTrainingInstitute(MTI),Ranchifor5.42acresoflandispending.Theamountreceived/receivableforsuchtransferhasbeentakenintheaccounts.DeedofconveyancehasbeenexecutedinfavourofMECONLimitedbyGovernmentofJharkhandon1stAugust,2016 for landmeasuring1.50acresof land for townshipatRanchiwhichwasacquiredfromGovt.ofBiharbytheCompanyin1983-84.

(iv) Outof223.36acresoflandinpossessionoftheCompanyintownshipatRanchi,0.856acresoflandisunderunauthorisedoccupation.

B) BUILDINGS

(i) ResidentialbuildingsatRourkela,Grossblock₹5.12 lakhs (Previousyear₹5.12 lakhs)andatDurgapur,Grossblock₹8.62lakhs(Previousyear₹8.62lakhs)havebeenconstructedonthelandbelongingtoSAILforwhichthedepreciationisbeingchargedattherateapplicableforResidentialBuilding.

(ii) PendingdeterminationoftheproportionatevalueofthelandinrespectofBuildingsacquiredatNewDelhi,Gaziabad,NaviMumbai,Bangalore(AustinTown&RajivNagar)andKolkatathecostofacquisitionofflatshasbeenconsideredasBuildinganddepreciationthereonhasbeenprovidedattherateasapplicableforResidentialBuilding.

C) Basedontheconceptofmateriality,assetspurchasedduringtheyearcostingupto₹1,000/-eacharechargedtorevenue(ReferNote2Sl.No.2.1.4)andincludedinNOTE37-“OTHEREXPENSES”.Assetspurchasedduring the year costing above₹1,000/- eachandupto₹5,000/- eachare fullydepreciated in the yearofacquisition(ReferNote2Sl.No.2.4.2)w.e.f.1993-94.

NOTE 4 - CAPITAL WORK-IN-PROGRESS

(₹ in lakhs)

Particulars

Opening Balance

as on 01.04.17

Additions/ Adjustments

TotalCapitalised/ Adjustments

Balance

As on 31.03.18

As on 31.03.17

As on 01.04.16

Installation of Energy Meter at Residential Township and Elevator / Modular Furniture / Biometric Attendance System at Head Office at Ranchi, Jharkhand.

65.51 122.28 187.79 175.57 12.22 65.51 316.80

TOTAL 65.51 122.28 187.79 175.57 12.22 65.51 316.80

i). Installation of Elevator at Administrative Building, Ranchi has been capitalised and transferred under“ElectricalInstallations”inNOTE3.1-“PROPERTY,PLANTANDEQUIPMENTS(GENERAL)”₹52.08Lakhs.

ii). InstallationofEnergyMeteratResidentialTownship,Ranchihasbeencapitalisedandtransferredunder“ElectricalInstallations”inNOTE3.3-“PROPERTY,PLANTANDEQUIPMENTS(SOCIALAMENITIES)”₹123.49Lakhs.


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Financial Statement

MECONLIMITED 97

NOTE 6 - INVESTMENTS (NON-CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2018 AS AT 31.03.2017 AS AT 01.04.2016

(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.)

11.92 511.92 511.92

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 7.60 7.60

NOTE 7 - TRADE RECEIVABLES (NON-CURRENT)(₹ in lakhs)


a) Unsecured, considered good 11,972.81 9,960.54 7,266.71

b) Considered doubtful 4,348.29 4,118.04 4,167.03

16,321.10 14,078.58 11,433.74

Less : Provision for Bad and Doubtful Trade Receivables / ECL

4,348.29 4,118.04 4,167.03

11,972.81 9,960.54 7,266.71


MECON

NOTE 8 - LOANS (NON-CURRENT)(₹ in lakhs)


(a) Security Deposits

(i) Government Authorities $ 5.45 5.44 5.50

(ii) Others

Unsecured, considered good 201.42 316.79 188.39

Considered doubtful 186.33 113.24 92.65

387.75 430.03 281.04

Less : Provision for doubtful deposits 186.33 201.42 113.24 316.79 92.65 188.39

(b) Loans to Related Parties - - -

(c) Others

(i) Advance to Employees $ 6.97 7.57 9.22

(ii) Interest Receivable on Advance to Employees $

13.06 14.50 18.30

(iii) Claims Recoverable


Considered Doubtful 116.34 116.34 115.35

121.75 119.35 115.45

Less : Provision for Claims Recoverable 116.34 5.41 116.34 3.01 115.35 0.10

232.31 347.31 221.51

$ Unsecured, considered good

NOTE 9 - OTHER FINANCIAL ASSETS (NON-CURRENT)(₹ in lakhs)


(a) Bank Balances 7,300.00 1.00 6,501.00

Fixed deposits with more than 3 months maturity which are due for maturity beyond 12 months from balance sheet date

Bank Balances include amounts held as security deposit

- 1.00 1.00

(b) Interest accrued but not due 5.92 0.02 14.26

7,305.92 1.02 6,515.26

NOTE 10 - DEFERRED TAX ASSETS (NET)(₹ in lakhs)


(a) Deferred Tax Assets

(i) Provision for bad & doubtful debts, etc. 5,896.52 4,682.42 4,513.90

(ii) Others 1,127.49 7,024.01 1,183.46 5,865.88 970.50 5,484.40

(b) Deferred Tax Liability

(i) Difference between book and tax depreciation

668.74 703.27 703.23

(ii) Provision for gratuity (1,404.75) (8.31) 72.11

(iii) Others 141.00 (595.01) 139.65 834.61 139.65 914.99

NET DEFERRED TAX ASSET / (LIABILITY) (a) - (b) 7,619.02 5,031.27 4,569.41

Financial Statement

MECONLIMITED 99

NOTE 11 - OTHER NON-CURRENT ASSETS(₹ in lakhs)


(a) Capital Advances - - 347.33

(b) Advances other than Capital Advances

(i) Security Deposits - - -

(ii) Advances to related parties - - -

(iii) Other Advances

- Advance to Suppliers and Sub-Contractors

Secured, considered good # 762.34 763.38 762.34

Unsecured, considered good - - -


1,124.07 1,125.11 1,124.07

Less : Provision for doubtful advance to Suppliers and Sub-Contractors 361.73 762.34 361.73 763.38 361.73 762.34

- Advance to Others $ 104.69 105.60 106.72

- Prepaid Expenses $ 1.59 0.34 0.63

- Advances to Board of Trustees, MECON Employees Gratuity Fund $

- 138.97 429.12

- Payment against Sales Tax / VAT $ 10.00 10.00 10.00

(c) Others

- Liquidated Damages Recovered by Clients



253.96 249.67 166.64

Less : Provision for doubtful liquidated damages recovered 253.96 - 249.67 - 166.64 -

- EMD, SD, PBG and Advance Amount in dispute


Considered Doubtful 4,612.06 700.76 700.76

4,612.06 700.76 700.76

Less : Provision for doubtful EMD, SD, PBG and Advance Amount in dispute 4,612.06 - 700.76 - 700.76 -

878.62 1,018.29 1,656.14


# Secured against bank guarantee / materials supplied / work done, as the case may be


MECON

NOTE 12 - INVENTORIES (₹ in lakhs)


(a) Stores and Spares 104.84 98.47 82.61

(b) Printing and Stationery 27.41 34.82 39.98

(c) Computer Consumables 16.22 19.92 14.30

Valued as per Accounting Policy (NOTE 2, Sl.No.6)

148.47 153.21 136.89

NOTE 13 - TRADE RECEIVABLES (CURRENT) (₹ in lakhs)


a) Unsecured, considered good 26,604.25 17,794.78 16,900.54

b) Considered doubtful 561.28 400.29 422.69

27,165.53 18,195.07 17,323.23

Less : Provision for Bad and Doubtful Trade Receivables / ECL

561.28 400.29 422.69

26,604.25 17,794.78 16,900.54

NOTE 14 - CASH AND CASH EQUIVALENTS (₹ in lakhs)


i) Cash at Bank (Current & Flexi Deposit A/cs) 2,882.19 216.21 127.69

ii) Cheques & Drafts on hand - - -

iii) Cash & Stamps on hand 8.82 16.89 15.46

2,891.01 233.10 143.15

NOTE 15 - OTHER BANK BALANCES (₹ in lakhs)


(a) Fixed Deposits with more than 3 months maturity which are due for maturity within 12 months from balance sheet date

47,351.00 54,810.00 53,800.56

(b) Interest accrued but not due on Fixed Deposits 734.67 1,172.94 1,680.45

48,085.67 55,982.94 55,481.01

¾ Other Bank Balances include amounts earmarked / available for specified purposes as under :

i) CSR and SD Expenditure 456.07 498.39 565.69

ii) Research & Development Expenditure 135.46 135.46 135.46

¾ Other Bank Balances include amounts held as margin money & security under lien against borrowings, etc.

12,051.00 7,250.00 7,300.00

¾ Other Bank Balances include Deposits with more than 12 months maturity

- 6,500.00 10,750.00

Financial Statement

MECONLIMITED 101

NOTE 16 - LOANS (CURRENT) (₹ in lakhs)


(a) Security Deposits

Deposit with Others



189.15 174.89 367.62

Less : Provision for Doubtful Deposit with Others 0.84 188.31 0.84 174.05 0.84 366.78

(b) Loans to Related Parties - - -

(c) Others

(i) Advance to Employees

Secured, considered good ## 0.02 0.02 0.02

Unsecured, considered good 315.07 315.09 234.04 234.06 359.58 359.60

(ii) Interest Receivable on Advance to Employees ##

1.07 2.51 2.69

(iii) Claims Recoverable



269.82 176.95 148.54

Less : Provision for Claims Recoverable 20.61 249.21 20.61 156.34 20.61 127.93

753.68 566.96 857.00

## Secured against buildings and vehicles

NOTE 17 - OTHER FINANCIAL ASSETS (CURRENT) (₹ in lakhs)


(a) Jobs-in-Progress for Consultancy Services

707.90 629.50 788.74

Valued as per Accounting Policy (NOTE 2, Sl.No.9)

Less : Provision for Stagnant Jobs-in-Progress 13.71 694.19 13.71 615.79 47.47 741.27

(b) Other Receivables 642.07 848.07 750.02

1,336.26 1,463.86 1,491.29

ThevalueofJobs-in-Progressason31.03.2018includes₹195.54lakhs(PreviousYear₹137.62lakhs)forfewnon-movingjobsagainstwhichsubstantialpaymentshavebeenreceivedbythecompany.Therefore,noprovisionismadeagainstvalueofsuchjobs.However,necessaryprovisionismadeagainstnon-movingjobswherepaymentreceivedislessthanthevalueofJobs-in-Progressason31.03.2018.


MECON

NOTE 18 - CURRENT TAX ASSETS (NET) (₹ in lakhs)


Payment against Income Taxes (Net) 7,727.66 8,545.51 5,538.48

CURRENT TAX ASSETS / (LIABILITIES) 7,727.66 8,545.51 5,538.48

NOTE 19 - OTHER CURRENT ASSETS (₹ in lakhs)


(a) Advances other than capital advances

(i) Security Deposits - - -

(ii) Advances to related parties - - -

(iii) Other Advances

- Advances to Contractors $ 14.57 9.12 5.72

- Advance to Suppliers and Sub-Contractors

Secured, considered good # 790.54 772.12 785.33


Considered Doubtful 0.06 0.06 -

855.95 799.84 789.62

Less : Provision for doubtful advance to Suppliers and Sub-Contractors 0.06 855.89 0.06 799.78 - 789.62

- Advance to Others & Canteen $ 161.27 18.80 26.99

- Prepaid Expenses $ 17.56 14.03 7.07

- Payment against Sales Tax / VAT (Net) $

1,223.07 1,106.10 1,049.55

- VAT Credit Receivable (INPUT) $ 4.57 39.47 63.25

- OUTPUT VAT Receivable



63.51 43.36 50.61

Less : Provision for Output VAT Receivable 19.96 43.55 19.96 23.40 19.96 30.65


# Secured against bank guarantee / materials supplied / work done, as the case may be

Financial Statement

MECONLIMITED 103

NOTE 19 - OTHER CURRENT ASSETS (Contd.)(₹ in lakhs)


- VAT / CST Receivable



430.60 494.66 464.14

Less : Provision for VAT Receivable 421.13 9.47 400.94 93.72 371.87 92.27

- Service Tax Receivable

Unsecured, considered good 1,094.54 2,869.89 2,546.83


2,006.83 3,472.11 3,082.88

Less : Provision for Service Tax Receivable 912.29 1,094.54 602.22 2,869.89 536.05 2,546.83

- GST Receivable

Unsecured, considered good 4,208.81 - -

(b) Others

- Liquidated Damages Recovered by Clients



121.00 121.00 121.00

Less : Provision for doubtful liquidated damages recovered

121.00 - 121.00 - 121.00 -

7,633.30 4,974.31 4,611.95


MECON

NOTE 20 : EQUITY SHARE CAPITAL(₹ in lakhs)

AS AT 31.03.2018 AS AT 31.03.2017 AS AT 01.04.2016

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

Preference Shares

6,30,00,000 (Previous year 6,30,00,000) 5% Non Cumulative Redeemable Preference Shares of ` 10/- each

6,300.00 6,300.00 6,300.00

10,400.00 10,400.00 10,400.00

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

RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDING

AS AT 31.03.2018 AS AT 31.03.2017 AS AT 01.04.2016

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

Financial Statement

MECONLIMITED 105

NOTE 21 : OTHER EQUITY(₹ in lakhs)

AS AT 31.03.2018 AS AT 31.03.2017 AS AT 01.04.2016

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 82.55 82.55

Add : Transferred from Surplus - - -

Less : Transferred to Surplus 15.25 - 67.30 15.25 - 82.55

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 (3,194.89) 4,043.14 19,514.30

Less : Adjustment of Prior Period Depreciation - - 20.25

Less : Adjustment of Expected Credit Loss - Trade Receivables

- - 540.97

Add : Net Profit / (Loss) from Statement of Profit and Loss

5,800.07 (7,305.33) (14,909.94)

Add : Transferred from CSR Activity Reserve 15.25 67.30 -

Amount available for appropriation 2,620.43 (3,194.89) 4,043.14

Less : Transferred to CSR Activity Reserve - - -

Less : Dividend on Equity Shares - - -

Less : Dividend Distribution Tax on Dividend on Equity Shares

- - -

Less : Transferred to General Reserve - 2,620.43 - (3,194.89) - 4,043.14

B. REVALUATION RESERVE $

As per last Balance Sheet - 2,218.26 2,218.26

Less : Amount adjusted / written back - - 2,218.26 - - 2,218.26

C. OTHER COMPREHENSIVE INCOME

As per last Balance Sheet (2,376.74) (1,339.43) (1,339.43)

Add : Other Comprehensive Income from Statement of Profit and Loss 133.88 (2,242.86) (1,037.31) (2,376.74) - (1,339.43)

TOTAL 16,529.96 10,596.01 21,156.91

$ A Revaluation Reserve of `3,879.23 lakhs was created as on 31.03.2000 due to revaluation of certain Land & Buildings owned by the company. It was adjusted to the extent of `1,660.97 lakhs upto 31st March, 2016 on account of disposal / depreciation of Revalued Assets.

Due to changes in accounting policy in line with Accounting Standard-10 as notified / amended by Ministry of Corporate Affairs on 30.03.2016, Revaluation Reserve of `2218.26 lakhs is adjusted / written back during the year 2016-17.


MECON

NOTE 22 - TRADE PAYABLES (NON-CURRENT)

(₹inlakhs)


Trade Payables

i) Dues to Micro, Small & Medium Enterprises (MSME)

1,256.40 1,032.15 967.23

ii) Others 6,249.79 7,506.19 6,202.25 7,234.40 4,105.96 5,073.19

TOTAL 7,506.19 7,234.40 5,073.19

NOTE 23 - OTHER FINANCIAL LIABILITIES (NON-CURRENT)

(₹inlakhs)


(a) Other Payables

(i) Sundry Creditors 172.01 568.61 156.59

(ii) Securities and Other Deposits 352.08 324.38 304.05

(iii) Deposit under Employees Family Benefit Scheme

336.39 358.70 278.81

(iv) Liability for Employees 22.85 3,713.23 3,079.93

TOTAL 883.33 4,964.92 3,819.38

NOTE 24 - PROVISIONS (NON-CURRENT)

(₹inlakhs)


(a) Provision for Employee Benefits

(i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation)

4,009.01 152.21 191.06

(ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation)

10,162.47 9,806.72 8,671.69

(iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation)

6,234.93 5,802.91 4,846.85

(iv) Provision for Employee Defined Contribution Schemes

14,422.25 14,216.78 12,639.64

(b) Other Provisions

(i) Provision for Miscellaneous Deduction by Clients

2,936.39 3,090.42 2,758.80

(ii) Provision for Disputed Cases 285.12 285.12 285.12

TOTAL 38,050.17 33,354.16 29,393.16

Financial Statement

MECONLIMITED 107

NOTE 25 - OTHER NON-CURRENT LIABILITIES(₹inlakhs)


(i) Advances from Clients 3,779.09 3,919.97 3,457.17

(ii) Liquidated Damages Recovered from Parties 461.91 446.92 390.02

TOTAL 4,241.00 4,366.89 3,847.19

NOTE 26 - TRADE PAYABLES (CURRENT)(₹inlakhs)


Trade Payables

(i) Dues to Micro, Small & Medium Enterprises (MSME)

(a) - Principal Amount, remaining unpaid 2,762.35 1,479.42 1,438.03

- Interest due on Principal Amount, remaining unpaid - 2,762.35 - 1,479.42 - 1,438.03

(b) Principal and Interest amount paid beyond appointed day during the year

- - -

(c) Interest due and payable for the delay in making payment which have been paid beyond appointed day but without adding the interest

- - -

(d) Amount of interest accrued and remaining unpaid at the end of the year

- - -

(e) Amount of further interest remaining due and payable until such date when the interest dues above are actually paid

- - -

(ii) Others 9,761.56 11,298.34 11,052.83

TOTAL 12,523.91 12,777.76 12,490.86

NOTE 27 - OTHER FINANCIAL LIABILITIES (CURRENT)(₹inlakhs)


(a) Current Maturity of Non-Current Borrowings - - -

(b) Interest accrued but not due on borrowings - - 2.54

(c) Interest accrued and due on borrowings - - -

(d) Other Payables

(i) Sundry Creditors 3,361.22 2,002.88 2,411.91

(ii) Securities and other deposits 421.59 396.14 372.53

(iii) Deposit under Employees Family Benefit Scheme

71.65 44.85 70.74

(iv) Liability for Employees 3,754.52 3,368.98 3,642.47

(v) Invoice raised but not accrued (Net) 7,297.40 2,356.30 2,331.35

TOTAL 14,906.38 8,169.15 8,831.54


MECON

NOTE 28 - OTHER CURRENT LIABILITIES(₹inlakhs)


(i) Advances from Clients 8,287.98 9,922.80 9,580.88

(ii) Deposit from Clients (Deposit Works) 2,245.89 - -

(iii) Liquidated Damages Recovered from Parties 80.23 79.17 115.30

(iv) VAT / Central Sales Tax Payable 116.44 187.32 76.11

(v) Service Tax Payable 1.11 48.34 45.57

(vi) GST Payable 2,071.89 - -

(vii) Others (including CSR / SD / R&D Fund) 660.89 658.72 866.68

TOTAL 13,464.43 10,896.35 10,684.54

NOTE 29 - PROVISIONS (CURRENT)(₹inlakhs)


(a) Provision for Employee Benefits

(i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation)

10.98 10.75 29.68

(ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation)

1,817.53 1,901.05 1,838.73

(iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation)

219.49 194.13 151.55

(b) Other Provisions

(i) Provision for Bonus 10.69 10.57 11.74

(ii) Provision for Expenses & Contractual Obligations

16,580.66 16,296.50 13,662.68

(iii) Provision for Miscellaneous Deductions by Clients

51.97 35.29 289.89

TOTAL 18,691.32 18,448.29 15,984.27

NOTE 30.1 - REVENUE FROM OPERATIONS(₹inlakhs)

Particulars 2017-18 2016-17

(a) Revenue from Consultancy Services 35,198.07 26,176.23

(b) Revenue from Construction Contracts 9,359.26 8,116.68

(c) Other Operating Revenue

(i) Provision no longer required written back (Direct) 2,878.04 605.71

(ii) Others 586.42 10.25

TOTAL 48,021.79 34,908.87

Financial Statement

MECONLIMITED 109

NOTE 30.2 - GROSS INCOME DERIVED FROM SERVICES RENDERED[Refer Note 30.1(a) and Note 30.1(b)]

(₹inlakhs)


(a) Engineering, Technical Consultancy, Project Management Services, etc. - Domestic 35,184.37 26,089.94

(b) Engineering, Technical Consultancy, Project Management Services, etc. - Foreign [Refer Note-40.17]

13.70 86.29

(c) Execution of Construction Contracts/EPC Contracts including Supply of Equipment & Components, etc.

9,359.26 8,116.68

TOTAL 44,557.33 34,292.91

NOTE 31 - OTHER INCOME(₹inlakhs)


(a) Interest Income

(i) Interest from Bank (Tax deducted at Source 3,563.38 4,419.22

` 239.17 lakhs) (CPLY ` 428.01 lakhs)

(ii) Interest on Advances to Employees for Conveyance and House Building 0.07 1.29

(iii) Interest from Income Tax Department and Others 309.29 7.09

(b) Dividend Income from Non-Current Investment 1.60 1.06

(c) Other Non-Operating Income

(i) Profit on Sale / Disposal of Fixed Assets 0.69 2.20

(ii) Income from Township 1,297.34 1,013.51

(iii) Provision no longer required written back 5,511.99 208.87

(iv) Miscellaneous Income 240.26 147.50

TOTAL 10,924.62 5,800.74

NOTE 32 - PURCHASE OF EQUIPMENTS & DIRECT EXPENSES(₹inlakhs)


(a) Purchase of Equipments & Components for execution of jobs 4,719.64 5,393.75

(b) Expenses on Sub-Contractors & Others for execution of jobs 4,035.37 3,270.16

(c) Provision for Expenses & Contractual Obligations for execution of jobs 4,215.46 2,681.62

TOTAL (a)+(b)+(c) 12,970.47 11,345.53

NOTE 33 - (ACCRETION) / DECRETION TO JOBS-IN-PROGRESS(₹inlakhs)


(a) Opening Jobs-in-Progress (Consultancy) 629.50 788.74

(b) Closing Jobs-in-Progress (Consultancy) 707.90 629.50

(a)-(b) (78.40) 159.24


MECON

NOTE 34 - EMPLOYEE BENEFITS EXPENSES(₹inlakhs)


(a) Salaries & Wages

- Salary and Allowances 17,704.58 17,383.55

- Leave Encashment 1,575.14 1,492.34

- Perks and Allowances 3,266.57 3,872.75

- Bonus 7.85 7.59

- Superannuation Benefits 1,774.46 2,389.93

Sub-Total 24,328.60 25,146.16

(b) Company’s Contribution to Provident and Other Fund 6,154.45 2,026.13

(c) Staff Welfare Expenses

- Education 4.77 3.67

- Medical 547.87 620.67

- Social & Cultural Activities 57.66 54.85

- Rent (Residential) 1.53 -

- Group Insurance Premium 16.70 34.71

- Staff Welfare (Others) 252.33 255.53

Sub-Total 880.86 969.43

TOTAL (a)+(b)+(c) 31,363.91 28,141.72

NOTE 35 - FINANCE COSTS(₹inlakhs)


(a) Interest

Interest on Loan from Banks 32.00 90.99

Sub-Total (a) 32.00 90.99

(b) Other Borrowing Costs

i) Bank Charges 39.12 17.81

ii) Bank Guarantee Commission 94.78 47.88

Sub-Total (b) 133.90 65.69

TOTAL (a) + (b) 165.90 156.68

NOTE 36 - DEPRECIATION AND AMORTISATION EXPENSES(₹inlakhs)


a) Depreciation 824.85 895.53

b) Amortisation 110.09 76.83

TOTAL (a) + (b) 934.94 972.36

Financial Statement

MECONLIMITED 111

NOTE 37 - OTHER EXPENSES(₹inlakhs)


1. Travelling Expenses 1,908.73 1,799.29

2. Foreign Deputation 336.93 299.90

3. Maintenance & Repairs to Buildings 1,450.32 1,200.57

4. Repairs (Others) 64.66 96.88

5. Stores & Spares consumed 163.76 102.15

6. Printing & Stationery consumed 99.41 121.47

7. Expenses on Computer Consumables 21.79 74.06

8. Rent (Non-residential) 362.79 307.16

9. Rates & Taxes 114.02 46.90

10. Advertisement & Publicity 90.95 47.33

11. Advertisement (Reimbursible) 617.27 355.45

12. Payment to Auditors :

- As Statutory Auditor 3.00 3.00

- For Tax Audit Matters 0.48 0.48

- For Quarterly Audit 1.80 1.80

- For reimbursement of expenses 2.60 7.88 2.81 8.09

13. Insurance 4.23 3.70

14. Training Expenses :

- Inland 63.80 59.22

- Foreign - 63.80 - 59.22

15. Postage,Telephones & Telegraphs 133.26 149.30

16. Computer Services 96.79 116.80

17. Power and Fuel 535.09 515.24

18. Legal & Professional Charges 93.31 34.27

19. Assets Charged to Revenue 0.44 1.55

20. Other Administrative and Misc. Expenses 924.23 957.07

21. Fees Withdrawn 18.22 9.21

22. Expenses on CSR and Sustainable Development 13.56 55.93

23. Expenses on Research & Development - 400.00

24. Loss on Sale / Disposal of Fixed Assets 2.02 13.55

25. Provisions

- Provision for Doubtful Trade Receivables / ECL 639.58 198.25

- Provision for Impairment in the value of Investments 500.00 -

- Provision for Claims Recoverable - 1.00

- Provision for Doubtful Deposit with Others 73.10 -

- Provision for Earnest Money Deposit - 20.59

- Provision for Stagnant Jobs-in-Progress - 3.65

- Provision for Stagnant Jobs 430.39 188.20

- Provision for LD Recovered by Clients 4.66 83.53

- Provision for Doubtful Advances to Suppliers - 0.06

- Provision for Service Tax Receivable 285.51 113.39

- Provision for VAT / Cess Receivable 54.70 47.35

- Provision for Doubtful ITDS Credit 6.68 56.84

- Provision for Doubtful STDS Credit - 4.57

- Provision for Misc. Deduction by Clients 71.94 176.80

TOTAL 9,190.02 7,669.32


MECON

NOTE 38: CONTINGENT LIABILITIES AND COMMITMENTS(to the extent not provided for)

(₹inlakhs)

Particulars 31.03.2018 31.03.2017 01.04.2016

38.1 Contingent Liabilities

i) ClaimsagainstCompanyunderliquidateddamageclausebytheClients.

NIL NIL NIL

ii) Incometaxindispute/underappeal 781.60 605.86 802.91

iii) Sales tax demands pending appeals with AppellateAuthorities.

2,166.68 1,913.77 1,287.26

iv) Claims against Company by Contractors/Suppliers, etc.pendingfinaldecision.

7,590.64 8,720.19 4,870.16

v) Claims against Company for electricity supply byJharkhand Urja Vikas Nigam Limited (JUVNL) indispute₹2,486.07lakhs.Outofthis,₹527.14lakhsispaid/providedinaccountspendingfinaldecisionduringtheFY2015-16.

1,958.93 1,958.93 1,958.93

vi) The Regional Provident Fund Commissioner-II,Jharkhand,Ranchiorderedforpaymentof₹385.27lakhsbywayofinterestandpenaltytotheBOT,arisingoutofdelayedremittancesbythecompanytotheBOT,MECONEmployeesPFTrust.ThecompanydisputedthesameandfiledanappealwithEPF,AppellateTribunal,NewDelhiafterdepositing₹96.32lakhsasinterimadhocadvance.

TheHon’bleHighCourtof Jharkhand,videorderdated30thJuly,2012hasdirectedProvidentFundCommissioner,Ranchi to decide the question of delay in payment anddetermine the quantum of damages with a view to re-assesstheliabilityoftheCompany,settingasideallearlierorders.

RPFChasworkedoutliabilityof₹326.02lakhsvidetheirletterdated28.08.2013.Provisionof₹3.11lakhshasbeenmade during 2013-14 based on Company’s calculationpending final decision. Out of the above, the RegionalProvident Fund Commissioner-I, Jharkhand, Ranchivide their letter dated 17.03.2015, demanded ₹116.86lakhstowardsinterestandpenalty,arisingoutofdelayedremittances of PF and Pension amounts for the periodfromApril,1971toFebruary,2001.

Writ Petition has been filed before Hon’ble JharkhandHighCourtagainsttheorderdated14.02.2017passedbyEPF,AppellateTribunal,NewDelhi.

322.91 322.91 322.91

vii) Interest on arrear perks and allowances in respect ofexecutive employees as determined upto 31.03.2018followingorderno.O.A.350/00191/2014dated15.02.2016passedby theCentralAdministrativeTribunal,CalcuttaBench,pendingfinaldecision.

4,684.16 4,129.82 3,575.48

Financial Statement

MECONLIMITED 113

Particulars 31.03.2018 31.03.2017 01.04.2016

viii) Arrears Perks and Allowances in respect of executiveemployees for the period 26.11.2008 to 20.10.2009 asestimated following the order no. O.A. 350/00191/2014dated 15.02.2016 issued by the Central AdministrativeTribunal, Calcutta Bench.Thematter is in dispute andis pending before the Hon’ble Calcutta High Court asintimatedbytheMinistryofSteel.

3,079.66 NIL NIL

38.2 Commitments

Estimated amount of contracts/orders remaining to beexecuted/suppliedoncapitalaccountandnotprovidedfor

27.77 136.35 1,304.64

NOTE 39: PROPOSED DIVIDEND(₹inlakhs)

Particulars 2017-18 2016-17Proposeddividendonequityshares

Totaldividend(₹inlakhs)

Dividendpershare(₹)

DividenddistributiontaxonProposeddividend

1,027.19

2.56

211.14

NIL

NIL

NILProposeddividendonequitysharesaresubjecttoapprovalattheannualgeneralmeetingandarenotrecognizedasliability(includingdividenddistributiontax)

NOTE 40: ADDITIONAL INFORMATION AND OTHER DISCLOSURES(₹inlakhs)


40.1 LettersofCreditopenedwithBankersforpurchaseofequipment&componentsandtechnicalservices.

94.51 NIL

40.2 GuaranteesgivenbyBanksforandonbehalfoftheCompanytodifferent clients etc.

16,811.08 17,239.63

40.3 EarningsinForeignExchangeFeesforservicesrendered.

13.70 86.29

40.4 ExpenditureinForeignCurrency(i) ProfessionalandConsultationFees(ii) Othermatters

212.32197.79 410.11

104.67136.37 241.04

40.5 ValueofImports(CalculatedonCIFbasis)(i) Equipment,components&sparespartsusedinconstruction

contract(ii) Capital goods

251.56

NIL 251.56

139.92

11.52 151.44

40.6 (i) ExpensesonAdvertisement&Publicity (a)Advertisement (b)Publicity(ii) ExpensesonPublicRelationEstablishment

52.8038.15 90.95

37.02

13.1034.23 47.33

47.79


MECON


40.7 Expenses on Engineering, Research & Development Wing /establishment,includingcapitalassets

(a) Salary&Wages,etc.(b) ExpensesoutofR&DFund

71.32NIL 71.32

76.57NIL 76.57

40.8 PARTICULARS OF PROVISIONS

(₹inlakhs)

PARTICULARSProvi-

sion for Bonus

Provision for Bad & Doubtful

Debts

Provision for Liq-uidated

Damages recovered by Clients

Provi-sion 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 Deduc-tions by Clients

Provision for Disputed Cas-es, Stagnant

jobs, EMD, SD, etc

Opening Balance as on 01.04.2017

10.57

(11.73)

3,988.60

(4,048.75)

370.67

(287.63)

136.95

(135.95)

27.44

(6.85)

86.64

(86.64)

361.79

(361.73)

3,125.71

(3,048.68)

8,509.20

(8,214.22)

Add: Provision made during the year

3.51

(7.01)

468.66

(198.25)

4.66

(83.53)

NIL

(1.00)

NIL

(20.59)

73.09

(NIL)

NIL

(0.06)

71.94

(176.80)

4,688.57

(414.00)

Less: Provision utilised during the year

3.39

(3.33)

NIL

(1.90)

NIL

(0.49)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

0.59

(2.12)

Less: Unused provision reversed during the year

NIL

(4.84)

248.34

(256.50)

0.37

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

209.29

(99.77)

2,491.13

(116.90)

Closing Balance as on 31.03.2018

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)

Figuresinbracketrelatestopreviousyear

40.9 DISCLOSURE UNDER IND AS-11 ON “CONSTRUCTION CONTRACTS”

(₹inlakhs)


i) Contract Revenue recognized as revenue for the period [Refer Note30.2]

44,557.33 34,292.91

ii) Contractcostsincurredandrecognizedprofits(Lessrecognizedlosses)uptothereportingdate

454,378.85 413,934.20

iii) Advancesreceived 8,337.70 9,289.70

iv) Grossamountduefromcustomersforcontractwork 8,272.21 11,295.60

v) Grossamountduetocustomersforcontractwork 19,495.79 16,394.49

Financial Statement

MECONLIMITED 115

40.10 DISCLOSURE UNDER IND AS-17 ON “LEASES”

TheCompanyhastakencertainoffices,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2017-18anamountof₹362.79lakhs(PY₹318.59lakhs)hasbeenaccountedforasrentalchargesinrespectofthesecancellableleases.

TheCompanyhasgivencertainoffice,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2017-18anamountof₹201.49lakhs(PY₹103.33lakhs)hasbeenaccountedforasrentalincomeinrespectofthesecancellableleases.

40.11 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₹10.00lakhs.Themaximumlimitofgratuityisenhancedfrom₹10.00lakhsto₹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 leave as above.Encashment of accumulatedearnedleaveisalsoallowedupto30daysonceinacalendaryear.

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.


MECON

A.2

Rec

onci

liatio

n of

Pre

sent

Val

ue o

f Defi

ned

Ben

efi t

Obl

igat

ion

(DBO

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(₹ in

lakh

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12

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56

78

Sl.

Part

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Grat

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e En

cash

men

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Post

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Post

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t Se

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EFBS

Ret

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Gift

Long

Ser

vice

Aw

ard

LTC/

LTA

1P.

V. o

f DBO

(Ope

ning

) 5,

298.

8711

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1,48

3.64

188.

3024

6.33

25.2

120

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80.5

2

P.V.

of D

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5,26

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257

7.41

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78.0

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4.40

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1.72

725.

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9.80

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122.

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(7.8

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--

--

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6Pa

st S

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ost

4,05

3.85

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(25.

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Bene

fit P

aid

(Pre

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(644

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(886

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(78.

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(10.

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(60.

39)

(0.1

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(5.6

7)

8P.

V. o

f DBO

(Clo

sing

) 9,

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1,97

6.53

181.

3422

2.06

24.0

425

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71.9

3

P.V.

of D

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(Pr

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5,29

8.87

11,7

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71,

483.

6418

8.30

246.

3325

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20.3

080

.52

Financial Statement

MECONLIMITED 117

A.3 Reconciliation of Fair Value of Plan Assets and Obligations.

Thecompanyhaswholly/partly funded the gratuity liability through a separateGratuityFund.The fairvalueoftheplanassetsismainlybasedontheinformationgivenbyLICthroughwhomtheinvestmentshavebeenmadebytheFund.InvestmentsofthefundisalsomadeinflexidepositaccountwithBanks.ThereconciliationoffairvalueofplanassetsoftheGratuityFundanddefinedbenefitGratuityobligationsareasunder:

Sl. Particulars As on 31.03.2018 As on 31.03.2017

1 F.V of Plan Assets (Opening) 5,274.88 5,475.50

2 InterestIncome 376.73 425.89

3 BenefitPayment (552.21) (624.83)

4 Contributions made 8.45 -

5 Actuarial(Loss)/Gain - (1.68)

6 F.V. of Plan Assets (Closing) 5,107.85 5,274.88

7 P.V.ofD.B.O.(Closing) 9,127.84 5,298.87

Net liability / (assets) recognised in the Balance Sheet 4,019.99 23.99

The Company expects to contribute the amount to the Gratuity Fund during the Year 2018-19 afterconsideringliabilityandfundposition.

A.4 Provident Fund

Company’scontributionpaid/payableduringtheyeartotheProvidentFundTrustarerecognisedintheStatementofProfit&Loss.TheCompany’sProvidentFundTrustisexemptedundersection17ofEmployees’ProvidentFundandMiscellaneousProvisionsAct,1952.Theconditionsforgrantofexemptionsstipulatethat theemployershallmakegooddeficiency, ifany, in the interest ratedeclaredby theTrustsvis-a-visstatutory rate.TheCompany has alreadymade adequate provisions in the accounts based on actuarialvaluationofProvidentFund.

Thedefinedbenefitobligations,otherthanGratuityandProvidentfund,areunfunded.


MECON

A.5

Exp

ense

s rec

ogni

sed

in S

tate

men

t of P

rofi t

& L

oss

(₹ in

lakh

s)

12

34

56

78

Sl.

Part

icul

ars

Grat

uity

Leav

e En

cash

men

t

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Financial Statement

MECONLIMITED 119

A.7 Actuarial Assumptions

2017-18 2016-17 1 DiscountRate(perannum) - 7.60% 7.30%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)

- 7.4%-7.65% 8.35%-9.5%

6 SalaryEscalation (perannum)

- 16%onBasicPay 16%onBasicPay

Theestimateoffuturesalaryincreaseconsideredinactuarialvaluation,takes into account inflation rate, seniority, promotion and otherrelevantfactors.

A.8 Financial Assumptions Sensitivity Analysis

(₹inlakhs)

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 9,448.78 8,835.84 9,110.67 9,158.11

2 LeaveEncashment 12,432.46 11,567.15 11,670.90 12,319.69

3 PostRetirementSettlementBenefits 188.57 174.64 174.86 188.28

4 EFBS 225.10 219.09 – –

5 RetirementGift 25.00 23.15 23.18 24.96

6 LongServiceAward 26.54 25.05 25.09 26.50

7 LTC/LTA 73.31 70.60 – –

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:

(₹inlakhs)

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

14.17 (12.27)

2 Increase/(decrease) on present value ofpost retirement benefit obligations as at31st,March,2018

188.88 (165.48)


MECON

A.10 Expected Cash Flows for the following years

(₹inlakhs)

Period Gratuity Leave EncashmentYear 1 888.66 1,817.53Year2 1,117.26 1,921.10Year3 1,345.23 1,970.05Year4 1,201.51 1,574.90Year5 1,191.41 1,412.43Next5years 4,627.58 3,269.79

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

(₹inlakhs)

Particulars Post Retirement Pension Benefits

2017-18 2016-17

ExpenseschargedtoStatementofProfitandLoss 1,599.35 1,577.14

40.12 DISCLOSURE UNDER IND AS-24 ON “RELATED PARTY DISCLOSURES”

i) Related Parties and their relationships:

Name of the Related Party Nature of Relationship

M/s.Metallurgical&EngineeringConsultants(Nigeria)Limited

JointVentureCompany

BoardofTrustees,MECONEmployees’ProvidentFundandGratuityFund

PostEmploymentBenefitPlans

Key Management Personnel

ShriAtulBhatt ChairmanandManagingDirector

ShriS.Chattopadhyay(upto31.08.2017) Director(Project)

ShriP.K.Sarangi Director(Technical)

ShriGoutamChatterjee Director(Commercial)

ShriSalilKumar(w.e.f.25.01.2018) Director(Projects)

ShriSaraswatiPrasad,IAS GovernmentDirector

ShriSyedainAbbasi,IAS(upto11.10.2017) GovernmentDirector

ShriSunilBarthwal,IAS(w.e.f.11.10.2017) GovernmentDirector

ShriSisirKumarAppikatla IndependentDirector

Financial Statement

MECONLIMITED 121

ii) The details of transactions between the Company and the Related Parties other than Key Managerial Personnel:

(₹inlakhs)

Sl. No. Name of the related party

M/s.Metallurgical & Engineering Consultants (Nigeria) Limited2017-18 2016-17

1. Transactionduringtheyear NIL NIL2. OutstandingBalancesasattheendoftheyear NIL NIL

iii) The details of transactions and balances pertaining to Key Managerial Personnel:

(₹inlakhs)

Sl. No. Name of the related party 2017-18 2016-17

1. Salaryandwages 114.18 117.012. PostEmploymentBenefit 87.14 93.303. Sittingfees 1.00 1.10

RemunerationexcludesmedicalfacilitiesprovidedatCompany’shospital,monetaryvalueofwhichisnotascertainable.

iv) Transaction with Government and Government Related Entities:

As MECON is a government entity under the control of Ministry of Steel, the company has availedexemptionfromdetaileddisclosuresrequiredunderIndAS-24withrespecttorelatedpartytransactionwithgovernmentandgovernmentrelatedentities.

As required under Ind AS 24, the collective significant transactions with respect to government andgovernmentrelatedentitiesarethataround42%ofthecompany’sTurnover,around53%ofTradeReceivablesarewithrespecttogovernmentandgovernmentrelatedentities.

40.13 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:

(₹inlakhs)

Name of the Joint Venture

Company

% of Company’s Ownership

Interest

Assets Liabilities Income Expenditure Contingent Liabilities

Capital Commitments

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)

FiguresinbracketrelatestopreviousyearTheabovefiguresarebasedontheauditedaccountsofMetallurgical&EngineeringConsultants(Nigeria)Ltd.fortheyearending31.12.2014.ReportingcurrencyofMetallurgical&EngineeringConsultants(Nigeria)Ltd.isNaira.Assets and Liabilities are reported using the closing rate of exchange as on 31.12.2014 whereas Income andExpenditurearereportedusingtheaverageexchangerateinforceduringtheyear2014asavailable.


MECON

40.14 DISCLOSURE UNDER IND AS-33 ON “EARNINGS PER SHARE”

Calculation of Earnings Per Share:

Sl. No.


a) NetProfit / (Loss) for theyearattributable toEquityShareholders(₹inlakhs)

5,800.07 (-)7,305.33

b) WeightedaveragenumberofEquityShares(ReferNote20)

4,01,38,360 4,01,38,360

c) EarningsPerShare(BasicandDiluted)(b)/(c)(in₹) 14.45 (-)18.20

d) FaceValuepershare(in₹) 10.00 10.00

40.15 Considering the nature of company’s business and the type of assets held by the company, there is noindicationoflossduetoimpairmentofassetsasat31.03.2018asperIndAS-36.

40.16 Incaseofforeclosureof jobs,thefeesettledbytheclientisconsideredas100%valueofworkdoneandincomeisaccountedforaccordingly.Incasethesettledfeeis lessthantheincomealreadybooked,suchexcessincomeischargedtorevenueunderthehead“FeesWithdrawn”(ReferNote37).

40.17 Owingtouncertainty,incomefromforeignconsultancyjobsfortheclientsagainstcontractsorlettersofintentorworkordersorexchangeofletters,whichstipulatefixedprice,isrecognizedonthebasisofamountreceivedfromtheclientsagainstworkdone.Insuchcases,thepercentageprogressmethodandthresholdcriteria are not applied.

40.18 PaymentsagainstSupplies&ServicesfromSSIUnitsaregenerallymadeinaccordancewithagreedcredittermsandthereisnooverdueamount.

40.19 Disclosure on R&D:

(₹inlakhs)


OpeningBalanceofFund 135.46 135.46

Add:Allocation/Provisionmadeduringtheyear NIL NIL

Less:Adjustment/Utilizationmadeduringtheyear NIL NIL

ClosingBalanceofFund(ReferNote15) 135.46 135.46

NecessaryR&DFundhavebeencreateddebitingP/LaccountandR&DexpenseshavebeendebitedtoR&DFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.

40.20 Disclosure on CSR:

(₹inlakhs)


CSRProjects/Programmes,etc. 40.63 55.93

Others 1.69 11.37

TotalAmountSpent 42.32 67.30

Amountunspentoutofprescribedallocatedsumduringtheyear NIL NIL

NecessaryCSR&SDFundhavebeencreateddebitingP/Laccountuptothefinancialyear2013-14andCSR&SDexpenseshavebeendebitedtoCSR&SDFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.UnspentamountcarriedforwardinCSR&SDFundis₹456.07lakhsason31.03.2018(₹483.14lakhsason31.03.2017andason01.04.2016).

Financial Statement

MECONLIMITED 123

From2014-15onwardsnecessaryCSRamountisappropriated/transferredtoCSRActivityReserveandCSRamountspentisadjusted/transferredfromCSRActivityReserve.Duringtheyearnoamount(PreviousYear₹NIL) is transferred fromSurplus toCSRActivityReserve.UnspentCSRamountcarried forwardundertheheadCSRActivityReserveis₹NILason31.03.2018(₹15.25lakhsason31.03.2017and₹82.55lakhsason01.04.2016).

40.21Consideringtheprincipleofprudenceandconservatism,DeferredTaxAssetisnotrecognizedfortaxablelossincurred/carriedforwardduetouncertaintyinsufficientfuturetaxableincome.

40.22 Wagerevisionisduefornon-executiveemployeesw.e.f.01.01.2017.DuringtheFY2017-18,provisionhasbeenmadefor₹17.69lakhs(PreviousYear₹4.52lakhs)towardswagerevisioninrespectofnon-executiveemployees,basedonestimateandinformationasavailable,etc.

40.23 Wagerevisionisdueforexecutiveemployeesw.e.f.01.01.2017.However,consideringtheDPEOMdated03.08.2017 and the financial status of the company, provision forwage revision in respect of executiveemployeesisnotmadeduringtheyear.Further,provisionmadetowardswagerevisioninrespectofexecutiveemployeesbasedonestimateandinformationasavailable,etcduringtheFY2016-17of₹628.79lakhsiswrittenbackduringtheFY2017-18.However,thematterwillbereviewedin2018-19basedoncompany’sperformanceetc.

40.24 ProvisionwasmadeduringtheFY2015-16towardsarrearsPerksandAllowancesinrespectofexecutiveemployees for ₹ 3,079.66 lakhs for the period 26.11.2008 to 20.10.2009 following order no. O.A.350/00191/2014 dated 15.02.2016 issued by the Central Administrative Tribunal, Calcutta Bench. ThematterisindisputeandispendingbeforetheHon’bleCalcuttaHighCourtasintimatedbytheMinistryofSteel.Accordingly,provisionof₹3,079.66lakhsiswrittenbackduringtheFY2017-18.

40.25 Provisionwasmadetowards“PostSuperannuationMedicalBenefitScheme”w.e.f.01.01.2007asperDPEOMdated26.11.2008and02.04.2009underSuperannuationBenefitsasapplicable.Theunutilizedprovisionof₹1,393.88lakhsiswrittenbackduringtheFY2017-18afterimplementationoftheabovescheme.

40.26 PaymentofGratuityAct,1972hasbeenamendedvidethePaymentofGratuity(Amendment)Act,2018enhancingtheceilingofgratuityamountfrom₹10.00lakhsto₹20.00lakhsw.e.f.29.03.2018asperDPEOMdated11.04.2018.TheBoardofDirectorshasapprovednecessaryamendment inMECONGratuityFundRuleson09.05.2018.Accordingly,thecompanyhasmadeprovisionof₹4,189.37lakhsduringtheFY2017-18towardsgratuitybasedonactuarialvaluation.

40.27 Advance of ₹ 756.86 lakhs was given toM/sMysore Construction Company (W.O. No. 11.51/Q6AA/Civil/7720dated05.12.2005)againstvalidBankGuarantee.TheCompanylodgedclaimswithinduedateagainstBankGuaranteeandthematterisinprocessintheHon’blePrincipalDistrictCourtatCuddalore.

40.28 First time adoption of Ind AS:(a) Transition to Ind AS:ThesefinancialstatementsoftheCompanyarethefirstIndAScompliantfinancialstatements.Forperiodsuptoandincludingtheyearendedason31stMarch,2017,thecompanyprepareditsfinancialstatementsinaccordancewithaccountingstandardsnotifiedundersection133oftheCompaniesAct,2013.ForthepurposeoftransitiontoIndAS,theCompanyhasfollowedtheprovisionsprescribedinIndAS101,First–TimeAdoptionofIndianAccountingStandards,withApril1,2016asthedateoftransition.ThetransitiontoIndAShasresultedinchangesinthepresentationofthefinancialstatements,disclosuresinthenotestheretoandaccounting policies and principles. (b) Ind AS optional exemptions:Deemed cost for property, plant and equipment, investment property and intangible assets:IndAS101permitsafirsttimeadoptertoelecttocontinuewiththecarryingvalueforallproperty,plantandequipmentasrecognizedinthefinancialstatementsasatthedateoftransitiontoIndAS,measuredasperthepreviousGAAPandusethatasitsdeemedcostasatthedateoftransitionaftermakingnecessaryadjustmentsforde-commissioningliabilities.This exemptioncanalsobeused for intangible assets coveredby IndAS38 IntangibleAssets and InvestmentpropertycoveredbyIndAS40InvestmentProperties.Accordingly,thecompanyhaselectedtomeasureallofitsproperty,plantandequipment,intangibleassetsandinvestmentpropertyattheirpreviousGAAPcarryingvalueas deemed cost.


MECON

(c) Ind AS mandatory exemptions:

i) Estimated

Anentity’sestimatesinaccordancewithIndASsatthedatetransitiontoIndASshallbeconsistentwithestimates made for the same date in accordance with previous GAAP (after adjustment to reflect anydifferenceinaccountingpolicies),unlessthereisobjectiveevidencethatthoseestimateswereinerror.

ii) Classification and measurement of financial assets and liabilities

TheclassificationandmeasurementoffinancialassetswillbemadeconsideringwhethertheconditionsasperIndAS109aremetbasedonfactsandcircumstancesexistingatthedateoftransition.

(d) Reconciliations:

ThefollowingreconciliationsprovidetheeffectoftransitiontoIndASfromGAAPinaccordancewithIndAS-101:

i) Reconciliation of Total Equity as at 01st April, 2016 and 31st March, 2017

(₹inlakhs)

Particulars 31st March, 2017 01st April, 2016

Total Equity (Shareholders’ Funds) as per previous GAAP 15,137.35 25,739.96

Broughtforwardadjustmentfrompreviousyear (569.21) -

AdjustmentsduetoearlieryearDepreciation 28.24 (28.24)

RestatementofExpectedCreditLoss–TradeReceivables 11.24 (540.97)

Re-computationofJobs-in-Progress 2.23 -

Total Equity as per Ind AS 14,609.85 25,170.75

ii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

(₹inlakhs)

Particulars 31st March, 2017

Profit / (Loss) after tax as per previous GAAP (8,384.35)

AdjustmentsduetoearlieryearDepreciation 28.24

RestatementofExpectedCreditLoss–TradeReceivables 11.24

Re-computationofJobs-in-Progress 2.23

Total comprehensive income for the year ended 31st March, 2017 (8,342.64)

40.29 Financial Instruments:

Financialassets/liabilitiesarerecognisedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionofthefinancialassetisalsoadjusted.Subsequenttoinitialrecognition,allfinancialassetsaremeasuredeither at amortisedcostor at fair value.Financial liabilities are subsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.

Valuationprocessandtechniqueusedtodeterminefairvalue:

1) Thecarryingamountoffinancialassetsand liabilitieswith less than12monthsareconsidered toberepresentativeoftheirfairvalue.

2) Investmentsinassociateandjointventurearemeasuredatcost.

Financial Statement

MECONLIMITED 125

Risk Management

TheCompanyisexposedtovariousrisksinrelationtofinancialinstruments.Themaintypesofrisksaremarketrisk,creditriskandliquidityrisk.TheCompany’sriskmanagementiscoordinatedat itsheadquarters, inclosecooperationwiththeboardofdirectors,andfocusesonactivelysecuringtheCompany’sshorttomedium-termcashflowsbyminimisingtheexposuretovolatilefinancialmarkets.Long-termfinancialinvestmentsaremanagedtogenerate lasting returns.Thecompanydoesnot actively engage in the tradingoffinancial assets.ThemostsignificantfinancialrisktowhichtheCompanyisexposediscreditrisk.

Credit Risk

CreditriskistheriskthatacounterpartyfailstodischargeanobligationtotheCompany.TheCompanyisexposedtothisriskforvariousfinancialinstruments.TheCompany’smaximumexposuretocreditriskislimitedtothecarryingamountoffollowingtypesfinancialassets.

� Cashandcashequivalents

� TradeReceivables

� Otherfinancialassets

TheCompanycontinuouslymonitorsdefaultsofcustomersandothercounterparties,identifiedeitherindividuallyorbytheCompany,andincorporatedthisinformationintoitscreditriskcontrols.

a) Credit risk management

Cash and cash equivalents

Credit risk related to cash and cash equivalents ismanagedbyonly acceptinghighly ratedbankdeposits andaccountsindifferentbanksacrossthecountry.

Trade Receivables

TheCompanycloselymonitorsthecredit-worthinessontheTradeReceivablesandonlyprovideservicetocreditworthyparties.

Other financial assets

OtherfinancialassetsforexampleloansandadvancestoemployeesandotherCreditriskrelatedtotheseotherfinancialassetsismanagedbymonitoringtherecoverabilityofsuchamountcontinuously.

b) Expected credit losses

Companyprovidesexpectedcreditlossesbasedonthefollowing:

Trade Receivables

TheCompanyrecognizeslifetimeexpectedcreditlossesonTradeReceivablesusingasimplifiedapproachanduseshistoricalinformationtoarriveatlosspercentagerelevanttoeachcategoryoftradereceivables:

(₹ in lakhs)

Ageing (As at 31st March, 2018) 0-12 months

12-24 months

24-36 months

More than 36 months Total

Grosscarryingamount 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


MECON

Ageing (As at 31st March, 2017) 0-12 months

12-24 months

24-36 months




Carrying amount of trade receivables(Netofimpairment)

17,794.78 3,855.91 1,898.16 4,206.47 27,755.32

Ageing (As at 1st April, 2016) 0-12 months

12-24 months

24-36 months




Carrying amount of trade receivables(Netofimpairment)

16,900.54 2,670.43 2,058.96 2,537.32 24,167.25

Reconciliation of Expected credit provision(₹inlakhs)

Particulars Amount

As at 1st April, 2016 4,589.72

Changesinprovision (71.39)

As at 31st March, 2017 4,518.33

Changesinprovision 391.24

As at 31st March, 2018 4,909.57

Other financial assets

Companyprovidesforexpectedcreditlossesonfinancialassetsotherthantradereceivablesbyassessingindividualfinancial instrumentsforexpectationofanycredit losses.Sincethiscategoryincludesfinancialassetsofvariednaturesandpurpose,thereisnotrendthatthecompanycandrawtoapplyconsistentlytoentirepopulation.TheCompanydoesnothave any expected lossbased impairment recognisedon suchassets considering their lowcreditrisknature.

Financial Statement

MECONLIMITED 127

40.30 : DISCLOSURE UNDER INDIAN ACCOUNTING STANDARD-108 ON “OPERATING SEGMENTS”

BUSINESS SEGMENT (PRIMARY SEGMENT) REPORTING FOR THE YEAR 2017-18

(₹inlakhs)

SEGMENTS METALS ENERGY INFRASTRUCTURE TOTAL

ParticularsCurrent

YearPrevious

YearCurrent

YearPrevious

YearCurrent

YearPrevious

YearCurrent

YearPrevious

Year

I. SEGMENT REVENUE

a. Segment Revenue 20,055.06 18,517.16 17,664.00 11,702.74 6,838.27 4,073.01 44,557.33 34,292.91

II. SEGMENT RESULTS

a. Segment Result [Profit/(Loss)]

(7,820.55) (12,266.96) 2,197.32 799.82 (812.30) (1,739.37) (6,435.53) (13,206.51)

b. Unallocated Corporate Expenses

- -

c. Operating Profit/(Loss)

(6,435.53) (13,206.51)

d. Finance Costs 165.90 156.68

e. Interest Income 3,872.74 4,427.60

f. Income Taxes (1,400.50) (429.91)

g. Non Operating Loss

2.02 13.55

h. Non Operating Income

7,051.88 1,373.14

i. Accretion / (Decretion) to Jobs-in-Progress

78.40 (159.24)

j. Net Profit/(Loss) 5,800.07 (7,305.33)

III. OTHER INFORMATION

a. Segment Assets 39,012.57 30,389.99 15,001.91 11,157.84 9,048.69 5,930.92 63,063.17 47,478.75

b. Unallocated Corporate Assets

67,747.36 67,343.01

c. Total Assets 130,810.53 114,821.76

d. Segment Liabilities

56,516.20 50,091.50 9,238.22 9,155.42 12,176.31 9,470.59 77,930.73 68,717.51

e. Unallocated Corporate Liabilities

32,336.00 31,494.41

f. Total Liabilities 110,266.73 100,211.92

g. Non-Cash Expenses other than Depreciation

1,303.71 3,154.78 83.69 168.85 196.13 104.10 1,583.53 3,427.73

h. Capital Employed 12,900.64 9,001.14


MECON

40.31 NOTES ON SEGMENT REPORT

a) “Business Segments”havebeenidentifiedasPrimarySegmentsinaccordancewiththeguidelinesof“IndAS-108”onOperatingSegmentsissuedbyICAIconsideringthereturn/riskprofilesofthebusinesses,theorganisationstructureandthemanagementreportingsystem.

b) As a part of business restructuring process, the core business activities of the organisation have beenregroupedandclassified from four “StrategicBusinessUnits” (SBUs) to three “StrategicBusinessUnits”(SBUs)inlinewiththerecommendationoftheConsultantsw.e.f.2016-17asbelow:

Segment Definitions:

i) “Metals” includesIron&Steel,RollingMills,Non-Ferrous,RawMaterials&Mining,Refractoriesetc.

ii) “Energy” includesRenewableEnergy,Powerplant-Thermal&Hydel,Transmission&Distribution,RLA&RMUstudies,Oil&Gaspipelines,Petro-chemical&Refineries,POLDepots,RetailOutletsetc.

iii) “Infrastructure” includes Architecture & Town Planning, Ports & Material Handling, Roads,Highways,Bridges,&Flyovers,Defence,Environmental&Hydroengineering,ManagementAdvisoryServices,InformationTechnologyetc.

c) Segment Revenue comprises income from Construction Contracts and income from Engineering &ConsultancyServicesfortheJobsinIndiaandabroad.

d) UnallocatedcorporateexpenditureincludesexpensesincurredoncorporateservicesprovidedtoBusinessSegmentsandotherexpensesnotallocableonareasonablebasistoBusinessSegments.

e) DisclosureofInformationonGeographicalSegment(SecondarySegment)isnotmadeconsideringtheriskandreturnofbusinessactivities/operationsbeingcarriedoutbythecompanywhicharenotaffectedbythegeographicalconditions/locationsoftheBusinessCentres/ProjectSitesetc.

f) SegmentAssets and Segment Liabilities represent operating assets and liabilities respectivelywhich aredirectlyattributabletothesegmentorallocatedtothesegmentonareasonablebasis.

g) Property,Plant&EquipmentandIntangibleAssetsusedinthecompany’sbusinessarecommoninnatureforallbyand largeand thereforearenotdirectlyattributable to the segmentor canbeallocated to thesegment on a reasonable basis.

40.32Previousyear’s/year-to-datefigureshavebeenregrouped/recastwherevernecessaryintheBalanceSheet,StatementofProfit&Loss,CashFlowStatementandNotes,etc.

Financial Statement

MECONLIMITED 129

FORM AOC-I

Part “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. Not Considered in Consolidation NotApplicable

In terms of our report of even dateFor V. ROHATGI & CO. CHARTERED ACCOUNTANTS




Sd/- (RAVI BAMBHA)

COMPANY SECRETARY


(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)


Place : Ranchi



MECON

The release of the 'Coffee Table Book' and the 'Conclave Report' at the Conclave on Capital Goods for Steel Sector: Manufacture in India 2018 in Bhubaneswar, Odisha in presence of Shri Naveen Patnaik, Chief Minister, Odisha, Shri Chaudhary Birender Singh, Union Minister of Steel, GoI, Shri Dharmendra Pradhan, Union Minister of

Petroleum & Natural Gas & Skill Development and Entrepreneurship, Shri Anant Geete, Union Cabinet Minister for Heavy Industries and Public Sector Enterprises,Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel, GOI and Shri Atul Bhatt, CMD MECON.

Hon’ble Shri Chaudhary Birender Singh, Union Minister of Steel along with Shri Anant Geete, Union Cabinet Minister for Heavy Industries and Public

Sector Enterprises, Shri Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship and

Shri Atul Bhatt, CMD MECON during Conclave on Capital Goods for Steel Sector: Manufacture in India 2018 at Bhubaneswar

Shri Atul Bhatt, CMD MECON welcoming Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel at MECON, Ranchi

Providing hearse vehicle (Dead Body Carrier) to Punjabi Hindu Biradari, Ranchi

Shri Atul Bhatt, CMD MECON welcoming Hon’ble Shri Chaudhary Birender Singh, Union Minister of Steel at MECON, Ranchi

Shri Binoy Kumar, IAS, Steel Secretary, Ministry of Steel, GOI along with Shri Atul Bhatt, CMD MECON during his visit to MECON

Medical camp organised at Birsa Siksha Niketan, Jagannathpur, Ranchi

Inauguration of Classroom at Pramathanath Madhya Vidyalya Hinoo, Ranchi

Stitching Training Centre, Irgu Toli

2 - day "Orientation Training Program" for teachers of Stitching Training Centers run under Resource generation

schemes of MECON CSR

GLIMPSES OF CSR ACTIVITIES

Primary Education Centre, Pokhar Toli, Ranchi

45th

2017-18ANNUAL REPORT

MECON LIMITED

MECON LIMTED(A Govt. of India Enterprise)

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 : +91-651-2483136/2483653, Fax : +91-651-2482214/ 2482189

E-mail: [email protected]

City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 [email protected] Delhi +91-11-22447417 +91-11-22041214 [email protected] Mumbai +91-22-27812155-58 +91-22-27812275 [email protected] +91-33-22822381-82 +91-33-22824441 [email protected]

MECON

MECON

YEARS OFCELEBRATINGTHE MAHATMA

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