2018-1946th ANNUAL REPORT

MECON LIMITED

MECON

MECON LIMTED(A Govt. of India Enterprise)

MECON YEARS OF

CELEBRATINGTHE MAHATMA

Head O�ceVivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India

CIN No. - U74140JH1973GOI001199www.meconlimited.co.in

For Enquiry Contact

Major O�ces

Joint General Manager (Marketing)Phone : +91-651-2483136/2481440, Fax : +91-651-2482214/ 2482189

E-mail: marketing@meconlimited.co.in

City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 bangalore@meconlimited.co.inNew Delhi +91-11-22041872 +91-11-22041214 delhi@meconlimited.co.inNavi Mumbai +91-22-27812155-58 +91-22-27812275 mumbai@meconlimited.co.inKolkata +91-33-22822381-82 +91-33-22824441 kolkata@meconlimited.co.in

Find us on : @MECONLimited /@meconranchi meconranchi

396_1019_ Annapurna Press & Process 0651-2331800, appranchi.1969@gmail.com

CMD MECON Shri Atul Bhatt, welcoming Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel

Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, being briefed about various projects of MECON during her visit to technical sections of MECON

Shri Yogendra Paswan, member of National Commission for Scheduled Caste (NCSC) during his visit to MECON

Under the aegis of Ministry of Steel, MECON participated in METEC 2019 at Dusseldorf, Germany, to showcase India’s Steel Growth story at Indian Steel Pavilion.

Shri Atul Bhatt, CMD MECON, addressing the gathering at India Steel 2019, 4th International Exhibition & Conference on Steel Sector, at Mumbai.

MECON was awarded 1st prize in the16th National Award on Excellence in Cost Management 2018, category- Consulting & others, by the Institute of Cost Accountants of India

MECON received 1st CSR Honourable Mention 2019- Excellence in CSR in Challenging Circumstances from Ministry of Corporate Affairs in presence of Hon'ble President of India and other dignitaries for

implementation of Solar water pumping system in adopted village, Pancha

Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, along with Shri Atul Bhatt, CMD MECON, Shri PK Sarangi, Director (Technical), Shri Goutam Chatterjee, Director (Commercial), Shri Salil Kumar, Director (Projects) and Shri RH Juneja,

Director (Finance) during Review meeting of MECON, at Ranchi

GLIMPSES OF CSR ACTIVITIES

Health Camp at Adopted Village - Sungi, Karra, District - RanchiAnnual Examination of Stitching Training Centres

Swacchta Abhiyan at Adopted Village - Pancha, Bundu, District - Ranchi

Painting Competition (Swacchta Abhiyan) for the School Children of Adopted Village - Sungi, Karra, District - Khunti

Foundation Laying of Boys Hostel Building at Orphanage (Anmol Basera), Village - Sungi, Karra, District - Khunti

Cataract Surgery of Villagers of Mecon's Adopted Village at Ispat Hospital, Shyamali

CORPORATE VISIONTo be an internationally recognized brand in design, engineering,

consultancy, project management and EPC execution.

CORPORATE MISSION• To be a global centre of excellence for providing innovative and cost–

effectiveengineeringandtechnologicalsolutionsinMetals&MiningaswellasdiversifiedsectorslikeEnergy,Infrastructure,Space,Defenceetc.

• Leveragedeepdomainknowledge in themetals andmining sectors toprovidesolutionsfromconcepttocommissioning.

• Leveragein-housecapabilitiestoprovideengineering,technologicalandprojectmanagementservicestoprioritysectorsofeconomy.

• Developindigenoustechnologicalbaseandpromoteselfreliance.

• Expandgeo-strategicpresenceandexportofservices.

Shri P. K. Sarangi Director(Technical)

Shri Goutam Chatterjee Director(Commercial)

Shri Salil Kumar Director(Projects)

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

Shri Saraswati Prasad, IAS GovernmentDirector

Smt. Rasika Chaube GovernmentDirector

Shri Sisir Kumar Appikatla IndependentDirector

Shri Deepak Krishan IndependentDirector

w.e.f.23.01.2019

LEADERSHIP AT MECON

As on the date of AGMShri Atul Bhatt ChairmanandManagingDirector

CORPORATE INFORMATION

BANKERS

StateBankofIndia UnionBankofIndia IndianOverseasBank BankofBaroda UnitedBankofIndia YESBank AndhraBank HDFCBank CanaraBank AxisBank ICICIBank IndusIndBank

COMPANY SECRETARY

ShriRaviBambha

STATUTORY AUDITOR

M/sV.Rohatgi&Company CharteredAccountants, 1stFloor,SarjanaBuilding,1,MainRoad, Ranchi–834001(Jharkhand)

FINANCE INCHARGE

ShriS.Samanta

REGISTERED OFFICE

VivekanandPath,Doranda Ranchi-834002 Jharkhand INDIA

CORPORATE IDENTIFICATON NUMBER

U74140JH1973GOI001199

WEBSITE

www.meconlimited.co.in

MECON is India’s frontline Design, Engineering & Consultancy, Project Management Consultancy and Contracting organization under Ministry of Steel, Govt. of India, rendering services required for setting-up of projects from Concept to Commissioning in the areas of Metals & Mining, Energy, Infrastructure and other Strategic sectors.

With strong workforce of over 1050 experienced & dedicated engineers, scientists and technologists, having network of offices spread all over the country and extensive capabilities in handling Consultancy and EPC projects, MECON is one of the biggest Consultancy & Contracting organization in the world. Our multi-skilled expertise in 35 technical disciplines creates the synergy vital for realizing projects in Time, Cost and Quality.

We have successfully completed over 3,500 consultancy and EPC assignments in India and abroad covering wide range of areas and services. We are an ISO 9001:2015 Company and have strategic technological partnerships with leading International organizations.

METALS

ENERGY

INFRASTRUCTURE

MECON - SUCCESS STORY

135+Assignments completed worldwide

110+EPC

projects executed

150+

300+EIA / EMP Reports

since 1990.

50+Years

of presence 16

Sectors

NABET accreditation

MAJORACHIEVEMENTS

53Total

Patents

Publications

CONTENTS

6 Chairman’sSpeech

9 BoardReport

26 MGT9-ExtractofAnnualReturn

33 AOC2-StatementpursuanttoSection134

34 CSR&Sustainability

52 TechnologyAbsorption

53 (MDAR)ManagementDiscussion&AnalysisReport

60 CorporateGovernance

65 IndependentAuditors’Report

75 C&AG’sComments

76 BalanceSheet

77 StatementofProfit&Loss

78 StatementofchangesinEquity

79 CashFlowStatement(IndirectMethod)

81 NotestoFinancialStatements

132 AOC1-StatementpursuanttoSection129

CHAIRMAN’S SPEECH

Dear Fellow Shareholders,

Itismypleasuretowelcomeyoualltothe46thAnnualGeneralMeetingofyourCompany.

The 2018-19 has been a year of building on theachievementsofthelastfiscalandscalingnewheights,whilst remaining profitable. It gives me immensepleasuretoinformyouthatyourCompanyhasmadegiantstrides inachievingOrderBookingof₹3191.75Crore, breaking all records and more than doublingourpreviousrecordof₹1418.65CroreinFY2016-17.This continual development and progress has largelybeenduetothecommitmentofTeamMECON,supportandencouragementfromallourstakeholdersandtheforesightandjudiciousplanningofyourManagement,in putting into place, a resilient Corporate Plan with business strategy, based on its core competencies and diversificationpolicytode-riskbusinessfromcyclicityofSteelsector.Our business strategy, in a nutshell, focuses on a 3prongedapproachforgrowth:

First, Strengthen the Core & Strategic sectors; Tothisendweseektocreatefurthervaluebydevelopingtheopportunities embedded in our existing operations and moveupthevaluechainforofferingend-to-endEPCservices.Second, Expand the horizon in Diversified sectors; To develop our portfolio,we intend to look beyondourcorebusinessforothergrowthopportunitiesbasedonprioritysectorsoftheGoI.Finally Third, expand Geographical reach; To gain access to International markets and seek newopportunitiestofuelCompany’sfuturegrowth.This strategy and our performance this fiscal furtheremboldens our aspiration of growing into a ₹1500CroreCompanyoveraperiodoffiveyears.To summarize, 2018-19 has been a year of goodprogressforourcompany.Wehaveemergedstrongerwitharestructuredorganizationthatpositionsuswellto continue executing our strategy over the comingyears.Physical and Financial Performance YourCompany’swell-plannedbusinessinitiativesandstrongCorporateStrategyhavedeliveredareasonableperformance and we are optimistic about enhancingthe growth ratewith our carefully prepared businessstrategies. YourCompanyhas registered aTurnover of₹470.17 Crore this FY as against₹445.72 Crore the previousyearandhasearnedaProfitAfterTaxof₹13.74 Crore. TheEarnings per Employee of the Company for thefinancialyear2018-19hasalsoimprovedby17.90% as comparedtopreviousyear.YourCompanyhassustaineditsgrowthinthedomesticmarket and has taken steps to enhance presence invarious overseasmarkets.The perseverance to adaptnew technologies has redefined perception of yourCompany,whichisnowseentobeaTransformationalConsultant, bringing-in new technologies, designs,process know-how as well as new standards inautomationandsafetyintheIron&SteelIndustry.YourCompany’scontinuedbusinessstrategytoexpandhorizonindiversifiedsectorshasyieldedrichdividendsand the ₹3191.75 Crore Order Booked across the 3businessverticalsthisfiscal,hassetanewbenchmarkforus,overshadowingallpreviousrecords.Thepatronage andmassive repeatbusiness that yourCompanyhasreceivedfromsomeofitsmajorclients,bears testimony to the success of your Company’sresolve to cater to the varied needs of the customer,

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through prompt response and quality deliverables,across the range of our capabilities. Salient projectsbaggedinclude:

� Assignments from UCIL for Development ofseveral Uranium Projects from Concept toCommissioning aswell as Expansion of existingUranium projects. In addition, UCIL have alsoentrusted your company to carry out Centralized ProcurementofSpares,ConsumablesandservicesfortheirexistingMinesandPlants.

� AssignmentsfromISRO

¾ EPC service for Integrated Engine TestingFacilityofIPRC–SemiCryoengineforISRO,Mahendragiri.

¾ ConsultancyservicesforRevolvingDomefor2.5mdiaTelescopeforISROatMountAbu.

¾ PMC services for Payload Fabrication &TestingFacilityforISROatBopal,Ahemdabad.

¾ Consultancy services for Solid PropellantSpaceBoosterPlant(SPROB),AugmentationFacilitiesforISRO,Sriharikota.

Contribution in Priority Sectors of GoIThisyearyourCompanycompletes60illustriousyearsof contributing to the socio-economic growth of thecountry.WehavesecuredaplethoraofjobsinthefieldsofMetals, Energy and Infrastructurewhich illustrateyourCompany’stechnicalexpertiseindiversifiedfields.InthequestforgrowthyourCompanyhasaligneditsbusiness strategy to focus on themajor initiatives oftheGoIandsomeofthemajorprojectsbeingexecutedundertheseinitiativesinclude:

� Make in India: Continuinginitsendeavortowardsthisnationalmission,yourCompany

¾ conceptualized the idea of ‘Indigenization of Capital Goods & Spares in Iron & Steel industry’ and as Knowledge Partner , under the aegis of Ministry of Steel, organized aconclave on “Capital goods for Steel Sector:Manufacture in India” at Bhubaneswar,Odisha.During the conclave 38MoUsweresigned among steel producers, equipmentmanufacturers and foreign steel technologysuppliers, which is expected to drive theindigenization of capital goods& spares forminimizingImportBillofthecountry.

¾ Your Company, as an active member ofStandingCommittee&GrievanceCommitteeonDomesticallyManufacturedIronandSteelProducts (DMI&SP) Policy, is contributingin implementation of the policy forprovidingpreference to ‘Make in India’over

imported Iron & Steel.Within two years ofits implementation, the country has savedaroundINR8,000Crorebyincreasingimportsubstitution through augmented usage ofdomesticallymanufacturedsteel.

� Urja Ganga: The “Energy Highway (UrjaGanga)” of Eastern India a major step of GoI,towards collective growth and development ofthe Eastern region of India. Your Company isproviding Engineering and ProjectManagementConsultancy services for approximately 2900kmNatural Gas (NG) Pipeline projects and India’sFirstIntegratedLNGSatelliteStationforGAIL.

� Bharatnet: A project of national importanceenvisionedbyGoItodigitallyconnectalltheGramPanchayats and Villages of India consequentlyachievingthegoalofDigitalIndia.Yourcompanyis providing Project Management Consultancyservices for the BharatNet Phase – II Projectin Jharkhand for Jharkhand CommunicationsNetwork Limited, GoJ in 11 Districts and 1684GramPanchayats.

� Railway Station Redevelopment: ConceivedbytheHon’blePrimeMinister, thisproject is forthe redevelopmentof 400 stations toworld classstations that deploy state of the art sustainabletechnologies.IndianRailwayStationsDevelopmentCorporationhasawardedyourCompanyprojectsfor providing Design, Engineering, ConsultancyandPMCservicesforeight(8)stations:Andheri,Bokaro Steel City, Lokmanya Tilak, BandraTerminus,Lonavala,Ranchi,AjmerandChennaiEgmore.

Environment ManagementWith understanding of its responsibility towards theenvironmentandsociety,yourCompanyalsofocuseson other tangibles like, value addition in terms ofimproved efficiency and environmental protectionetc.Atatimeofchallengesposedbychangingclimate,yourcompanyhasendeavoredtoadaptandrethinktheenergy efficiency, safety, resource conservation, zerodischargeandwaste controlmeasures, for existingaswellasfutureprojectsassignedtoit.Your Company has been retained as EnvironmentalConsultant for challenging environmental projects ofvariousclients.Significantenvironmentalengineeringprojectscarriedoutduringtheyearinclude:

� Hexavalent Chromium Remediation Project ofOMCSouthKaliaPaniinOdisha-forprovidingProjectManagementandConsultancyservicesforremediationof hexavalent chromium frommine

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MECON Limited

dischargeeffluent.

� Environmental Impact Assessment (EIA),Environmental Clearance (EC) & CoastalRegulatoryZone(CRZ)clearancefromMOEFCCfor“AwayfromReactor(AFR),spentfuelstoragefacility” at Kudankulam, Tamilnadu for NuclearPowerCorporationofIndiaLimited.

Human Resource MECON’s commitment to its dream of becomingan organization par excellence, demands company’sattentiontocontinuousexpansionoftheskillssetofitsemployees, throughcontinuous investmentbywayofparticipation inNational and InternationalTechnicalseminars,Specializedtechnicaltrainingsandin-houseMentoringprograms,etc.Additionally, your company has provided apropostrainingtoanappreciablenumberofmiddleandseniorlevel executives, through state-of-the-art programs,including those offered by ‘Centre of Excellence’institutesthroughDPE.Corporate Social ResponsibilityYour company, as a responsible Public Sectorentity, has been shouldering its Corporate SocialResponsibility(CSR)withthesamecommitmentandprideasprovidingtechnologicalservicestothenation.Yourcompanyhasbeencarryingoutactivitiesforthedevelopment&welfareofunderprivilegedsectionsofthesociety, inslumandbackwardareas, in&aroundRanchi as well as Naxal affected adopted villages ofRanchiandKhuntidistricts,whichareamongtheGoIidentifiedAspirationaldistrictsofJharkhand.DuringFY2018-19,yourcompany,inadditiontotheperennial CSR programs for women empowermentand education, has extensively worked towards theGovernment’s Annual theme of Education & HealthCare. Out of many impactful CSR projects, one of the

special projects carried out was in past, the “SolarPhotovoltaicbasedDrinkingWaterSystem”atPancha,Ranchi(Jharkhand)forprovidingsafedrinkingwatertotheunderprivilegedsectionsofthesociety,throughusage of clean and renewable source of energy. Asa recognition of this effort, your company has beenselected to receive Honourable Mention under theNationalCSRAwards2018,inthecategory-CorporateAwards in CSR in Challenging Circumstance, sub-category-EastbyMinistryofCorporateAffairs,GoI.Steps towards Good Governance Your Company’s Corporate Governance principleis based on imbibing best practices with emphasison integrity, honesty and ensuring transparency,accountability, compliance of all statutory andregulatory requirements and adhering to integrity inbusinessethics.Likethepastyears,thisyearalsoyourCompanyscored‘Excellent’ rating in compliance to Guidelines onCorporateGovernanceissuedbyGovernmentofIndiawhichmaintainsour recordofExcellent ratingeveryyear since inception. AcknowledgementIacknowledgethatallachievementshavebeenpossibleonly due to persistent and dedicated efforts made by the employees of the Company, who have alwayscontributedtheirbestfortheCompany.I am also grateful for the capable guidance of mycolleagues on the Board, gratitude for their prudentcounsel and continued guidance. I gratefully acknowledge the support extended tous byGoI,Ministry of Steel and thank them for theconfidenceandtrustbestowedupontheCompanyandthe opportunities given for growth. Your continuedsupport, trust and encouragement, is what gives usconfidenceandmotivationtostriveforexcellence.Thank you & Jai Hind!

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BOARD REPORT DearMembers,

YourDirectorshavethepleasureinpresenting46th AnnualReportontheoperationsoftheCompany

andtheStatementsofAccountsfortheFinancialYearendedon31stMarch,2019.

TheReportoftheStatutoryAuditorsandtheCommentsontheAccountsof theCompanybytheComptrollerandAuditorGeneralofIndia(C&AG)areannexedtothisReport.

1.0 PERFORMANCE HIGHLIGHTS

Thefinancialyear2018-19settlesdownonsatisfactorynote for MECON as the company maintained theprofitable trail though modest, while registeringimprovedturnoverandhasshowcasedanencouragingbusinessprocurementscorecard.Oil&GasandMiningSectorshaveemergedasflagrunnersofthecompany’sbusinessportfolioclearlyshowingthediversifiedareasoffuturebusinessroadmapinadditiontoputtingfirmfoot forward inmetalsbyconsolidatingour in-housestrengthandreinforcingwithappropriatepartnershipswith technology know-how leaders to break newgrounds as well as to stay on the cutting edge oftechnologyincoresector.

So, needless to say that imperatives like recovery ofsticky dues and more committed performance onprojects under execution would have to be pursuedrigorouslytoimprovethebottomlines.

Major prestigious projects of national importancecompleted/underprogressduringtheyearinclude:

Metals Sector

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

¾ PerformanceGuaranteecertificate issued forCokeOvenBatteryNo.-9,BSPBhilai.

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

¾ PerformanceGuaranteecertificate issued forCokeOvenBatteryNo.-6,RSPRourkelawithComputerizedOvenHeatingControlSystem(Level-2automation).

¾ FACforTorpedoLadleRepairshophasbeenissued.

¾ FACforCoalHandlingPlanthasbeenissued.

¾ Commissioning of Propane plant has beencompleted.

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

¾ Commissioning certificate issued for WetQuenchingSystemofCOB-7&8,BSLBokaro.

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

� Detailed Engineering & Consultancy includingProject Management Consultancy services for2.5Mtpa New Stream Expansion Plan of SAIL/

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IISCO Steel Plant, Burnpurhavebeenprovidedby your company and following are the majorachievements:

¾ SecondaryRefiningunitshavebeencommissioned.

¾ Performance Guarantee Test of ContinuousCasting Plant was successfully conducted &PGcertificatehasbeenissued.

¾ IntegratedOperationof2.5MtpaNewStreamExpansionProjecthasbeen issuedbyISPtoMECON.

¾ Performance Guarantee Test of Hot MetalDesulfurization Plant was successfullycompleted&PGcertificatehasbeenissued.

¾ Performance Guarantee Test of ReheatingFurnace of Universal SectionMill has beencompletedandPGcertificatehasbeenissued.

¾ Final Acceptance Certificate of Coke OvenBattery#11 & Blast Furnace Complex havebeen issued.

¾ PerformanceGuaranteeofIPPLwithmixingstation,PlantwideNetworking&ByproductPlanthavebeencompleted.

� Detailed Engineering & Consultancy services

including Project Management Consultancyservicesarebeingprovidedbyyourcompanyforsetting up of 3.0 Mtpa Integrated Steel Plant ofNMDC Limited at Nagarnar. The project is under execution.

¾ ElectricalpowerfromGridhasbeenchargedto Main Receiving Station (MRS) afterconducting Preliminary Acceptance Tests(PAT) and forOxygen Plant, PAC has beenissued.

¾ Successful Charging and Energisation of 10nos.33/6.6kVLBDSfortransmissionofpowertovariousshops/unitsintheentiresteelplantNISP,Nagarnarhasbeencompleted.

¾ Engineering of the major technologicalpackageslikeRawMaterialHandlingSystem(RMHS), Sinter Plant, Blast Furnace, SteelMaking Shop (SMS), Hot Strip Mill &Thin Slab Caster (HSM & TSC) have beencompleted.

¾ CoalrouteunitofRMHS,CokeOvenBatteryNo. 1, Sinter Plant, Blast Furnace, OxygenPlant, readiness for Hydro Test of Boiler-1of Power Plant, Pipe laying forWater fromIndrāvati river, LPG forCokeOven heatingand interplant pipeline for Nitrogen, Steam&CompressedAir are in advanced stage ofexecution.

¾ Load Trial run of wagon tippler has beenconductedsuccessfully.

� JSW Steel Limited, Vijaynagar Works hasentrusted your Company for providing Design,Engineering&ConsultancyservicesforRebuilding& Capacity Enhancement of their Blast Furnace#3(4,019m3UsefulVolume)tobecomecountry’slargest Blast Furnace (5,339m3 Useful Volume).The project is under execution.

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

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

� JSW Steel Limited, Dolvi Works has entrustedyourCompanyforprovidingDesign,Engineering& Consultancy services for installation of theirNew Pellet Plant # 2 (816 m2) which will bethe largest in the country. The project is underexecution.

� JSW Steel Limited, Vijayanagar Works has

entrusted your Company for providing Design,Engineering & Consultancy services forinstallationoftheirNewPelletPlant#2(816m2)whichwillbethelargestinthecountry.Theprojectis under execution.

� JSW Steel has entrusted your company forproviding consultancy & detail engineeringservicestoimplementindependentSGPforBlastFurnace#1.Theprojectisunderexecution.

Non Ferrous Sector � Birla Copper Ltd. (Aditya Birla group) has

awarded your company the assignment forDetailed Study and preparation of FeasibilityReport for its Phase – 2Upgradation ofCopperSmelter and Sulphuric Acid Plant-1 at Dahej,Gujarat.The Final report has been submitted toclient.

� Birla Copper Ltd. (Aditya Birla group) hasentrusted your company for the preparation ofFeasibility Report for its proposed greenfieldexpansion of 5.0 LTPA Copper Smelter andRefinery Plant at Dahej, Gujarat. The Report isunder preparation.

� Industrial Promotion and Investment Corporation Ltd. (IPICOL), Odisha hadentrusted MECON with the identification andfinalizationofAluminiumDownstreamProductsfortheirbusinesspromotioninOdisha.TheFinalReporthasbeensubmittedtoClient.

� Industrial Promotion and Investment Corporation Ltd. (IPICOL), Odisha hadentrusted MECON for the land assessment forAditya Birla’s Aluminium Smelter and CaptivePower Plant complex at Lapanga, Odisha. Thereport is under preparation.

� Mishra Dhatu Nigam Ltd. (MIDHANI), Hyderabad has entrusted your company for thepreparationofDPRforHi-EndAluminiumAlloyFlat Rolled Products Plant at Andhra Pradeshto meet the specific requirements of defence,automotive as well as other special applications.TheFinalDPRhas been submitted to client.TheprojectistobesetupinJointVenturewithPublicSector NALCO. The DPR has been cleared byNitiAayogforsettinguptheproposedprojectatNellore,AP.

� MECONiscarryingouttheDetailedEngineeringand consultancy Services for setting up anAluminium Alloy Wire Rod Plant at Angul forNALCO. The project is under execution.

� Adani Group hadassignedMECONtocarryoutaBankableFeasibilityReportfortheirproposed5

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LTPACopperProjecttobesetupatAdaniPortsandSpecialEconomicZoneLtd.(APSEZ),Gujarat,basedonimportedconcentrate.TheFinalReporthasbeensubmittedtoClient.

Power Sector

� Maharashtra State Power Generation Co. LimitedhasentrustedyourcompanyforcarryingouttheThirdPartyDelayAnalysisofBTG&BOPWorksofKhaperkhedaProject(1x500MW).Theprojecthassuccessfullybeencompleted.

� Bokaro Power Supply Company Limited hasentrusted your company for preparation ofTechno-Commercial Due Diligence report forMajorRepairofBoiler#1(capacity220TPH)witha schedule of 4 months. The project has beensuccessfullycompleted.

� Damodar Valley Corporationhasentrustedyourcompany for carrying out RLA and Up ratingStudy forPreparationofDPR forPanchetHydelStationUnit-1ofCapacity40MW.Theprojecthasbeensuccessfullycompleted.

� NTPC SAIL Power Company Limited hasentrusted your company for carrying out theTechnicalAuditofCokeOvenGasPipeSystemofPowerPlantBoileratNSPCL,Bhilai.Theprojecthasbeensuccessfullycompleted.

� Commissioningof100kWpHybridsolarPVplantfor Jharkhand MSME tool room, Ranchi hasbeensuccessfullycompleted.

� Commissioning of 11kV LBDS for providingauxiliarypowertoTurbo-blower-5inCPPofVSP, Vizaghasbeensuccessfullycompleted.

� Project monitoring & supervision of quality ofwork under RGGVY project of MPMKVVCL,Bhopal for five districts covering Betul, Datia,Harda, Bhind, Moren, Raisen,Vidisha under12th plan for MPMKVVCL, Bhopal has beensuccessfullycompleted.

� 100% electrification in Dhanbad, Bokaro,Ranchi, Ramgarh & Lohardaga Districts hasbeen successfully completed. 100% House Holdconnections given under SAUBHAGYA Schemein entire Jharkhand for JBVNL under DDUGJY scheme.

Oil & Gas Sector

� GAIL India Limited (GAIL)has entrustedyourcompany for Project Management Consultancy(PMC) for Cross Country Natural Gas PipelineProjectfromPhulpur(UttarPradesh)viaVaranasi,Dobhi(GayaBihar),Rajgir(SilaoBihar)toPatna/Barauni(Bihar).

The target for Gas from Phulpur to Varanasi,Dobhi (Gaya Bihar) to Patna (Bihar) has beensuccessfullycompleted.

� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering&ProjectManagementConsultancy(EPMC)forsettingupPetroleumoil&lubricants(HSD, MS,SKO & Ethanol) depot of capacity29,000KLatMeerut,UttarPradesh.Theprojectisunder execution.

� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering&ProjectManagementConsultancy(EPMC) services for settingupPetroleum,oil&lubricantsdepotof capacity77,000KLatHissar,Haryana. The project is under execution.

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� Hindustan Petroleum Corporation Limited (HPCL) has entrusted your company forEngineering Consultancy services for EmissionControls System (VRU) at Jaipur, Palanpur,Wadala, Loni, Kolkata (Budge Budge), Chennai,Irumpanam & Vashi terminals. The project isunder execution.

� OIL India Limited, Assam has awarded yourcompany for Engineering, Procurement, andConstructionManagementConsultancy(EPCM)forconstructionofGaspipelinefromBaghjantoCGGSMadhuban,Duliajan,inAssam.Theprojectis under execution.

� IGL awarded 3 number CNG stations withEquipmentonRCCCanopyconcepttoeconomizethe space requirement of CNG station and toreduce the noise pollution etc. The Project hasbeendeliveredbeforetimewithfullsatisfactionoftheclient.

� India’sfirstL-CNGSatelliteStationcommissionedatBhubaneswarforGAIL (India) Limited.

Infrastructure Sector

� Your company is rendering Consultancy and ProjectManagementServicesforinterconnectionof Iron Ore Handling Plant (IOHP) with theMechanizedCoalHandlingPlant(MCHP)usingnetwork of conveyors and a customized stackermachine at Paradip Port, Paradip, Odisha. Theproject is under execution.

� Ordnance Factory Board, Ministry of Defense had entrusted your company for providingconsultancyservices formodernizationofCODsatAgra&Jabalpur.Theproject isunderadvancestageofcompletion.

� Yourcompanyalongwithitsconsortiumpartner(M/s RHDHV) has been appointed as a DesignConsultantbyIndianNavyforapartofphasewiseexpansion(PhaseIIA)oftheirexistingNavalbaseat Karwar (Karnataka) under “Project Seabird”.The project is under execution.

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MECON

MECON Limited

Your Company is serving a large number of clientsin thePublic andPrivate Sectors. Someof themajorclients inPublicSector includeSAIL,GAIL,NMDC,ESIC, NSPCL, JBVNL, MAHAGENCO, Ministry ofAYUSH,ISRO,HAL,MRPL,HEC,BARC,HINCOL,APMDCL, NINL, RINL/VSP, KIOCL, HCL, NML,RINMOIL, SAILMOIL, MIDHANI, CorporationBank,BEL,GoJ,RPTPL,PFC,HPCL,BPCL,OPTCL,UPPCL, UPRVUNL, TANGEDCO, OMDC, OMCL,MRPL,TVNL,FCRI,IPICOL,NALCO,BPSCL,NLC,NSPCL, NPCIL, WBSEB, WBPDCL, WBSEDCL,BESCOM,OHPC,CMWSSB,UCIL, BGL,APPGCL,IOCL,HPGCL,ONGC,CPCB,KPCL,VPT,KPT,PPT,GGL,IGL,BGL,TNGCL,DVC,MSTC,NHPC,NMPT,IDCOL,IREL,BARC,SBIbesidesMinistryofPower,Govt.ofIndia,theStateElectricityBoardsinJharkhand,West Bengal, Madhya Pradesh, Chhattisgarh,Rajasthan, Tamil Nadu, Uttaranchal, Uttar Pradesh,Odisha. Jindal Group, Bhushan Group, Tata Group,UML,ESSAR,ESSEL,KICMETALIKS,AXISBANK,UML,ULTRATECH,MONNET,BMM,UGSL,MEL,BRPL, VEDANTA, ADHUNIK, HINDALCO, TML,BIL,MNGL,TOPWORTH,ADANI,MSPL,IIL,SLR,etc.aresomeofthemajorclientsintheprivatesector.

Inadditiontoabove,someofthemajorclientstowhomyourcompanyhasbeenrenderingservicesduringthisyear include Project Seabird, CCL, OMC, PFCCL,LANCO, HPCL, SHAR, Oil India, OPTCL, AssamState Housing Board, IOCL, HPCL, BPCL, NALCO,NLC, ECL,UCIL,NPCIL, JSW, PetronetMHB, KICMetaliks, JSPL, Brila Copper, Electrosteel, etc. TheCompanyisalsoprovidingservicestoDefenceSector.

Business procurement in the area of EngineeringConsultancy& PMC services was ₹ 533.27 Crore inpreviousyearand₹359.63Croreduringthisfinancialyear.InSupply/Turnkeyprojectsitwas₹470.17Croreinpreviousyearand₹2832.12Croreduringthisyear.

INDIAN ARMY

ETA - ZUMA GROUP

AN ISO 9001:2008ISPS COMPLIANT PORT

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MECON

2.0 BUSINESS DIVERSIFICATION

Diversification is anongoingphenomena inbusinessplanning of any vibrant business organization and atMECONtoo,itispursuedearnestlyinfaceoftechnicalchallenges it comes across every day. Our strategicdiversificationhasattainedmaturityasourOil&Gasbusinesshasmadeinternationaldebutwithexecutingoil pipe line project in Bangladesh. We have beenmakingforayintostrategicminingandprocessingareaslikeUraniumminingandprocessingthereofforclientslikeUCIL.Wehave also foundnewbusiness inPortandmaterialhandlingarea,FlueGasdesulphurizationinThermalPowerPlant, fire and safetymanagementand Energy Efficiency areaswhich is bound to growwithgrowing concern forEnvironment and safety insocietyandGovernment.

During this fiscal year, business procurement fromtheMetal sectorhasbeen significantwhich is clearlyreflected in overall order booking in Metal sector(94.48%)outweighingtheorderbookinginNon-Metalsector (5.52%). In Engineering and Consultancy, theCompany’sorderbookingis49%(previousyear61.75%)inNon-Metalsectorsand51%(previousyear38.25%)inMetalsector.Incaseofsupply/turnkeyprojects,itis0%(previousyear99.49%)inthediversifiedsectorsand100%(previousyear0.51%)inMetalsector.

0

100

200

300

400

500

2014-15 2015-16 2016-17 2017-18 2018-19

in `

cro

re

Business Procured (Consultancy)Metal Non-Metal

0

500

1000

1500

2000

2500

3000

2014-15 2015-16 2016-17 2017-18 2018-19

Business Procured (Supply)Metal Non-Metal

in `

cro

re

51%

20%

29%

SBU wise Business Procured (Consultancy)

Metal Energy Infastructure

3.0 MANAGEMENT INITIATIVES

Managementiscontinuingits focusonstrengtheningthe potentially high growth areas by deployingadditional resources and widening the globaloutreach of the company through participation ofemployeesininternationaltechnicalandtradeevents.Concerted efforts are beingmade for supplementingthe knowledge/ technology gaps throughMoUswithglobal leaders in respective fields and squeezing outopportunities trickling from the traditional businessareas.

4.0 MOU WITH MINISTRY OF STEEL ON PERFORMANCE

Likeinthepreviousyears,yourCompanyhassignedaMoUwiththeMinistryofSteelfortheF.Y.2018-19andisexpectedtoachieve“Fair”rating.

5.0 ISO 9001:2015 CERTIFICATION

Recently, your Company has successfully migratedto ISO 9001:2015 Standards from ISO 9001:2008standards.ThecertificatehasbeenawardedbyM/sTÜVNORD.ThescopeofCompany’scertificationincludesConsultancy, Design & Engineering, Procurementof Plant & Equipment, Inspection, Construction &ProjectManagementServicesandErectionofTurnkeyProjects. The surveillance audit by TÜV has beenconducted during November – December 2018 andCompany’sQMShasbeencertifiedforISO9001:2015andvalidatedupto29.01.2021.

6.0 INDIAN ASSIGNMENTS

Your company has procured following major workordersduring2018-19:

Metals Sector

� ExecutingAgency forDevelopmentofMosabaniUraniumRecoveryPlant(MURP)&Developmentof Rohil Uranium Project for Uranium Corporation of India Ltd., Jaduguda.

15

MECON

MECON Limited

� CentralisedProcurementservicesforprocurementof spares, consumables and services for existingMines and Plants of Uranium Corporation of India Ltd., Jaduguda.

� Detailed Engineering & Consultancy servicesforenhancementofSteelPlantCapacity from13Mtpato18MtpaforJSWVijayanagarWorksforJSW Steel Ltd., Mumbai.

� DeploymentofManpoweragainsttherequirementofNALCOinConstruction,CommissioningandOperation of Existing, Brownfield, GreenfieldProjects of National Aluminium Co. Ltd., Bhubaneswar.

� DetailedEngineering&Consultancyservices for30MtpaIronOreSlurryPipeline,OdishaProjectforJSW Steel Ltd., Mumbai.

� Amendment to Contract for providingEngineering, Procurement and Construction (EPC) services for Establishment of Structural&Mechanical Systems of IntegratedEngineTestFacility for ISRO Propulsion Complex (IPRC), Mahendragiri, Tamil Nadu.

� DetailedEngineering&Consultancyservices forHeatSizeEnhancementfrom130MTto160MTofSMS#1atJSWSteelVijayanagarWorksforJSW Steel Ltd., Mumbai.

� ConsultancyservicesforimplementationofZeroLiquidDischarge (ZLD) atSAIL/Rourkela Steel Plant, Rourkela.

� Engineering, Procurement and Construction (EPC) services forManufacture, Testing, Supply,Installation&Commissioning of Bowl CleaningMachine (BCM) at Sriharikota for Indian Space Research Organisation, Sriharikota.

� Additional work for providing DetailedEngineering&ConsultancyservicesforExpansionProjectofSAIL/Rourkela Steel Plant, Rourkela.

� DetailedEngineering&Consultancyservices forPellet Plant # 3 Project at VijayanagarWorks ofJSW Steel Ltd.

� Consultancy services for Augmentation ofexisting Coal Chemicals Plant as an additionalworktotheContractfor“installationofCOB#5alongwithby-productplant andother associatedfacilities” for RINL/Visakhapatnam Steel Plant, Visakhapatnam.

� Preparation of Techno-Economic FeasibilityReport(TEFR)&providingDetailedEngineering& Consultancy services for Induction Furnace,

Rebar Mill & Power Plant for the proposedExpansionProjectofAloke Steels Industries Pvt. Ltd., Ramgarh.

� Engineering, Procurement and Construction (EPC) services for installation of an AlternateCokeOvenGasFuelMainforCOB#10atSAIL/IISCO Steel Plant, Burnpur.

� PreparationofDetailedProjectReport(DPR)andselectionofMineDevelopercumOperator(MDO)forUtkal-D&E inNALCO atAngul,Odisha forNational Aluminium Co. Ltd., Bhubaneswar.

� DetailedEngineering&Consultancyservices forExpansionProject(CAL)atVasindforJSW Steel Coated Products Ltd., Maharashtra.

� Change Order for providing Engineering,ProcurementandConstruction(EPC)servicesforRepair of Concrete Nozzle Deck (Rebuilding ofCOB#8)forSAIL/Bokaro Steel Plant, Bokaro.

� DetailedEngineering&Consultancyservices forAugmentation job of SMS-II forSAIL/Rourkela Steel Plant, Rourkela.

� Detailed Engineering & Consultancy servicesfor integration of Secondary De-dusting Systemof Converter#3 with Converter#1&2 of SMS-IIComplexof SAIL/Rourkela Steel Plant, Rourkela.

� Detailed Engineering & Consultancy servicesformodificationinCokeScreeningBuildingandStockHouseofBF-1ofJSW Steel Ltd., Dolvi.

� Consultancy Services for getting StatutoryClearance (EC from MoEFCC and NOC fromSPCB)forexpansioncummodernisationofSAIL/Bokaro Steel Plant, Bokaro.

� Preparation of EIA/EMP report for VSP’sCapacity Expansion Project of 6.3 Mtpa to 7.3Mtpa for RINL/Visakhapatnam Steel Plant, Visakhapatnam.

� Preparation of Feasibility Report (FR) for entireBlockofParbatpurCentralCoalMine forSAIL/Collieries Division.

� Detailed Engineering & Consultancy servicesfor New LHF-5 at SMS#2 for JSW Steel Ltd., Toranagallu.

� EngineeringservicesforSteelPlantLayout-Plan,Elevation&CrossSectionforproposed6.0MtpaIntegratedSteelPlantatBellaryforUttam Galva Ferrous Ltd., Mumbai.

� Detailed Engineering & Consultancy servicesfor modification in Water Treatment Plant for

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MECON

ProductionEnhancementinHSM-IatVijayanagarWorksforJSW Steel Ltd., Toranagallu.

� PreparationofEIA/EMPreport for expansionofJSWSteelfrom16to18MtpaatBellaryforJSW Steel Ltd., Bellary.

� PreparationofViabilityStudyreportforCapacityAugmentation of SMS-I of BPSL Plant atJharsuguda,OdishaforJSW Steel Ltd., Mumbai.

� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlantatHospetforMSPL Ltd.

� Consultancy services for Process WaterOptimization and Water Efficiency Audit forRajpuraDaribaComplexandDebariZincSmelterComplexforHindustan Zinc Ltd., Udaipur.

� Preparation of Techno-Economic FeasibilityReport(TEFR)forPelletPlant-3andCokeOvenBattery#5ofJSW Steel Ltd., Toranagallu.

� PreparationofDetailedFeasibilityReport (DFR)for 240KTPAZinc SmelterComplex atRajpuraDaribaMineforHindustan Zinc Ltd., Udaipur.

� PreparationofDetailedFeasibilityReport (DFR)for250KTPAZincSmelterComplexatDebariforHindustan Zinc Ltd., Udaipur.

� DetailedEngineering&Consultancyservices forimprovementofBFGasNetworkofGerdau Steel India Pvt. Ltd., Bangalore.

� Preparation of Techno-Economic FeasibilityReport (TEFR) forAugmentation / setting-upofadditionalfacilitiesfor13MTExpansionofJSW Steel Ltd., Toranagallu.

� DetailedEngineering&Consultancyservices forimplementationofIndependentSlagGranulationSystem in BF#1 Complex of JSW Steel Ltd., Toranagallu.

� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlantatHospetbasedonin-housedata(Stage-1)forMSPL Ltd., Hospet

� Preparation of TEV & Asset Evaluation reportalong with TEFR for 1.0 Mtpa Integrated SteelPlant atHospet asper actual site conditionafterphysicaldataverification(Stage-2)forMSPL Ltd., Hospet.

� PreparationofAssetValuation&TechnoViabilityStudyofSteelPlantandMinesforNeelachal Ispat Nigam Ltd., Duburi.

� Pre-dispatch inspection of Ladles andConvertersets from China for SAIL/IISCO Steel Plant, Burnpur.

� Preparation of Study Report on Odisha Vision2030: Development of Downstream & AncillaryUnitsinMetalSectorsforIPICOL, Bhubaneswar.

� PreparationofDetailedProjectReport(DPR)forsetting-upof Forward andBackward IntegrationProjectstotheBlastFurnaceUnit,MangaloreforKIOCL Ltd., Bangalore.

� Preparation of Detailed Project Report (DPR)for settingupofa2.0MtpaPelletPlantatRINLPremises, Visakhapatnam for KIOCL Ltd., Bangalore.

� Preparation of Feasibility Report (FR) forChasnallaWestQuarry forOptimumExtractionofCoalReservesbyOpenCastforSAIL/Collieries Division.

Energy Sector

� Additional work for providing Engineering& Project Management Consultancy (EPMC)services for Replacement of Pipelines of GujaratRegionandCauveryBasinAreaPipelineforGAIL (India) Ltd., Noida.

� Engineering&ProjectManagementConsultancy(EPMC)services forVadodaraCGDProjects forVadodara Gas Ltd., Gujarat.

� Preparation of RLA & Uprating study forpreparationofDetailedProjectReport(DPR)forPanchetHydelStationUnit-1ofCapacity40MWforDamodar Valley Corporation, Kolkata.

� ConsultancyservicesforWarehouseManagement,Project Management, Engineering and otherservices for Lube Field Paharpur, Kolkata ofIndian Oil Corporation Ltd., Mumbai.

� PreparationofMarketSurveyreportandDetailedFeasibilityReport(DFR)forDevelopmentofCityGasDistributionNetwork inFiveGA’s forGAIL Gas Ltd., Noida.

� Engineering&ProjectManagementConsultancy(EPMC)servicesatDibiyapurCompressorStationfor Fire Water Revamping Project for GAIL (India) Ltd., Noida

� Consultancy services for Augmentation of 132KVMRSSub-stationofHindustan Copper Ltd., Malanjkhand.

� ConsultancyservicesforvariousO&MrelatedjobsunderGAILNCRforGAIL (India) Ltd., Noida.

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MECON

MECON Limited

� Consultancy Services for Tendering of variousProcurementPackages/ServicesinvolvedinCityGasDistributiononARCBasisforSabarmati Gas Ltd., Gandhinagar.

� Additional work for providing DetailedEngineering & Consultancy services formodernisation of IOCL’s Lube Blending Plant atPaharpur, Kolkata for Indian Oil Corporation Ltd., Kolkata.

� PreparationofDetailedFeasibilityReport (DFR)for Development of New Bitumen & Base OilTerminal at Mumbai Refinery area for Bharat Petroleum Corporation. Ltd., Mumbai.

� Additional work for providing Engineering,Procurement and Construction Management(EPCM)services forPetCokesilos forTrucks&WagonLoadingalongwithassociatedConveyingSystem, Covered Shed for Sulphur Yard andDCU Coke Pit for Mangalore Refinery & Petrochemicals Ltd., Mangalore.

� Additional work for providing Engineering,Procurement and Construction Management(EPCM) services for Construction ofMS, HSD,ATFDayTanksLoadingFacilities,TruckParkingTerminal (Marketing Terminal) and Flare GasRecoverySystem(FGRS)forMangalore Refinery & Petrochemicals Ltd., Mangalore.

� PreparationofDetailedFeasibilityReport (DFR)forNellore toKakinadaNaturalGasPipeline forIndian Molasses Company.

� PreparationofPre-FeasibilityReportfor10nos.ofGAsforthepurposeofparticipationin10th round ofBiddingbyPNGRBforGAIL Gas Ltd.

� PreparationofFeasibilityReport(FR)toadheretoMoEFnormsforFlueGasEmissionandSpecificWater Consumption limits in Power Plant forBokaro Power Supply Co. (P) Ltd., Bokaro.

� ExtensionofContractforprovidingConsultancyservices for installation of 300 Tph Boiler & 30MWBPTGProjectofBokaro Power Supply Co. (P) Ltd., Bokaro.

� Additional work for providing DetailedEngineering&ConsultancyservicesforCoalbasedThermalPowerPlant(1x250MW)atRourkelaforNTPC-SAIL Power Company Ltd., New Delhi.

Infrastructure Sector / Other Engineering

� Project Management Consultancy (PMC)services for Redevelopment/ Development ofRailway Stations for Indian Railway Stations

Development Corporation Ltd., New Delhi.

� ProjectManagementConsultancy(PMC)servicesfor Bharatnet Project Phase-II in Jharkhand forJharkhand Communication Network Ltd., Ranchi.

� Consultancy & PMC Services for installation ofsuitable Fugitive Dust Pollution Control Systemalong roads inside Paradip Port Trust, Odisha.

� Master Consultant for the work of upcoming50 MLD Desalination Plant at Dahej, Bharuch,Gujarat for Gujarat Industrial Development Corporation, Bharuch.

� Additional work for providing ProjectManagement Consultancy (PMC) services toexecute Payload Fabrication & Testing Facility(PFTF) Building at 39 Acres New SAC CampusatBopal,AhmedabadforIndian Space Research Organisation, Ahmedabad.

� Design, Engineering & PMC Services forConstruction of 2nd RCC Bridge over theAtharabanki Creek nearGateNo. 2 forParadip Port Trust, Odisha.

� PreparationofDetailedFeasibilityReport (DFR)for Alternate Water Supply from MuvattupuzhaRiver for BPCL Kochi Refinery for Bharat Petroleum Corporation Ltd.

� Engineering&ProjectManagementConsultancy(EPMC) services for Construction of OfficeBuildingatSonepatforGAIL Gas Ltd.

� Preparation of Feasibility Report (FR) for CoalTransportationsystembetweenGidhmuri-PaturiaCoalMine toPremNagarTPPatDist. Surajpurfor Chhattisgarh State Power Generation Co. Ltd., Raipur.

7.0 FOREIGN ASSIGNMENTS

Overseas assignment bagged by your company ishighlightedbelow:

� DetailedEngineering&Designfortransportationof White Oil Petroleum through Pipeline fromChattogram to Dhaka, Bangladesh for Auleek Services & Oncosys International JV, Dhaka, Bangladesh.

� Preparation of Feasibility Study report forextension of Iron Ore Storage Yard for Bahrain Steel BSCC E.C., Bahrain.

8.0 FUTURE BUSINESS VISION

The Global Steel outlook seems to be positive withall regions – NAFTA, EU, CIS, AFRICA, Middle

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MECON

East,ASIA&OCEANIAexpectingapositivegrowthdespite a tense Global trade scenario. The shortrangeoutlookofWSAcorroborates itwith ahealthy2.9% and 4.6% growth projection for developingEconomies(excludingChina).AstableGovt.andvastopportunities in infrastructure coupled with Govt.resolveforbettermentofcountry’sinfrastructurewouldkeep thegrowthwheelmoving.Nevertheless, theOil&Gas sector opportunities are expected to keep themomentumgoingwhereasMining&Mineralsectors,Energy Efficiency, FlueGas desulphurization etc. arethenewavenuesyourcompanyislookingatwithgreatinterest.Yourcompanyisintheprocessofforgingnewbusiness alliances with global leaders which wouldfurther leg up our efforts to enter into new businessareas as well as strengthen our positioning in theexistingmarket.Westandcommittedtoourbusinessvisionofconsolidatingourpresenceinthetraditionalbusinessdomainwhilekeepscratchingthegroundforvirginopportunitiesthrownopenbyeconomy–bothdomestic as well as global.

9.0 FINANCIAL RESULTS

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

Thefinancialhighlightfortheperiodunderreviewisasunder:

Particulars(₹ In Lakh)

2017-18 2018-199.1 Material changes and

commitment, if any, affectingthe financial position whichhas occurred between the endof financial year to which thefinancial statements relate andthedateofthereport.

NIL NIL

9.2 The amount, if any which isproposedtocarrytoanyreserve.OpeningBalanceAdditionduringtheyearAdjustmentduetoimplementationofIndASUtilised / Reversed during theyear

10,634.025,802.33

-

133.88

16,570.231,374.01

13,485.57

(1397.70)

ClosingBalance 16,570.23 30,032.119.3 Particularsofloans,guarantees

or investments under Section186oftheCompaniesAct,2013

519.52# 519.52#

9.4 Particulars of contracts orarrangementswithrelatedpartyreferred under section 188(1)in FormAOC-2. (Enclosed asAnnexure- A)

Nil Nil

(#) Represents the investment (Gross) made by thecompany.

0

100

200

300

400

500

2015-16 2016-17 2017-18 2018-19

317.

28

342.

93

445.

57

470.

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in ̀

Cror

e

Year

Turnover

10.0 DIVIDEND

Considering the financial position, CAPEX, futurebusiness expansion needs, etc., Board has notrecommended dividend on Equity Share Capital fortheFinancialYear2018-19.

10.1 CUMULATIVE DIVIDEND & TAX PAID

Yourcompanywhichhadpaidupcapitalof₹4,013.84lakh (previous year ₹4,013.84 lakh) including BonusSharesworth₹40.31lakh,haspaidcumulativedividendincludingtax(Equity&Preference)of₹7,863.78lakhtill 2017-18 and have not recommended dividendonEquity ShareCapital for 2018-19.The cumulativeincometaxtotheexchequeramountingto₹37,998.33lakhhasbeenpaid/providedtill2018-19.

11.0 EARNING PER EMPLOYEE

OperatingTurnoverperemployeeperyearisasfollows:

11.35 15.9923.46 27.66

05

1015202530

2015-16 2016-17 2017-18 2018-19

In ̀

Lakh

Year

OPERATING TURNOVER PER EMPLOYEE

12.0 RESEARCH & DEVELOPMENT

Commitments to R&D are essential in the presentIndian scenario. Make in India focus is one of thekey areas on which our laboratories and researchinstitutions are working by identifying the problemsand solving them with technology. R&D plays animportant role in augmenting the capabilities of thecompany through innovations in ideas, designs etc.which can be a source of potential values, when itcomes to gaining competitive advantages. Innovationresultsinhighqualityjobs,successfulbusiness,bettergoodsandservicesandmoreefficientprocess.R&Dofyour Company mostly undertakes Applied Research

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MECON

MECON Limited

and Experimental Development in the core area ofbusinesssuchasIronandSteelaswellasfocusedareasofnationalimportancesuchasDefence,Environmentetc. In recent years, not only your Company carriesoutselfsponsoredresearchworksbutalsocollaborateswithvariousexternalfundingagenciessuchasDRDO,DST,Ministry of Environment,Ministry of Steel etcfor research activities. Collaborative efforts in R&Dwith academic institutions and Industrial house areundertaken to strengthen the research potential andapplication domain.

Considering the Government of India’s initiative ofpromotinginnovativecultureinCPSEs,yourCompanyhas setup an Innovation Cell which comprises ofmembers from technological departments and R&D.ThescopeofInnovationCellistoestablishinnovativetechnologyandbusinessprocessre-engineeringideaswithsignificantbusinesspotential,socialrelevanceandfocusonenvironmentprotection.TheobjectivebehindsettingupoftheCellistotranslatetheinnovativeideasinto a viable technology through collaborative effortwithexternalinstitutions.

The R&D of your Company is recognised by theDepartmentofScientific&IndustrialResearch(DSIR),Government of India and the recognisition is validfor three years upto 31.03.2019. The application forrenewalofrecognisitionhasalreadyappliedfor.

Till 31.03.2019, your Company has filed 11 patentapplications with Indian Patent Office which arependingatdifferentlevels.

Projects Completed

Development of Torpedo Ladle Car monitoring system using Infrared Imaging.

WiththeintentofreducingfailuresinTorpedoladlesandincreasingitsaveragelife,yourCompanyinitiatedtheprojectwhichhasbeen successfully implementedatRSP,Rourkela.TheprojectisfundedbytheMinistryofSteel.

Patents Sealed:

YourCompanyhasbeengranted1(one)patentrightsinthefieldofBasicOxygenFurnace(BOF)duringtheyearunderreview.

13.0 CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

13.1 Conservation of Energy

Efforts are being undertaken to change Steel plantconfigurationbyeliminatingenergyintensiveoutdatedtechnologies and introducing state of the art energyefficienttechnologiesinironandsteelplants.

Overtheyears,yourcompanyhassuggestedanumberofestablishedenergysavingmeasures/technologiestovarioussteelplantsprojectsinIndia,resultinginsavingin scarce, high priced coking coal, saving in importof coking coal and resultant reduction inproductioncosts. In addition to these measures, the companyhas suggested few more energy saving measures /technologiesinvariousareaofsteelproduction,during2018-19,whicharesummarisedbelow:

CokeMakingPlant

¾ Machine based Hydro-jet door cleaningsystemadoptedinVSPCOB#5willconserveenergybylessmachinetraveltimeaswellaslesspollutionthroughdoorswhichresultsinpreventionofenergyrichrawcokeovengasleakage.

¾ Adoption of VVVF drive for Raw GasExhauster inBPPplantofVSPCOB#5 forsavingelectricalpower.

13.2 Technology Absorption

Thedetailedinformationoneffortsmadeandbenefitsderived like products improvement, cost reduction,product development or import substitution fromtechnologyabsorptionalongwithtechnologyimportedand expenditure incurred on R&D as per Section134(3) of theCompaniesAct, 2013 readwithRule 8of Companies (Accounts) Rules 2014 is enclosed atAnnexure-ItothisReport.

14.0 FOREIGN EXCHANGE EARNINGS AND OUTGO

Your Company has earned ₹462.38 lakh ForeignExchangeduringtheyear2018-19.TheexpenditureinForeignExchangeremitted/actuallyspentduringtheyearis₹275.33lakhasperdetailsgivenbelow.

Particulars (₹ in Lakh)Professional&ConsultationFees 143.27Othermatters 132.26Total 275.33

15.0 HUMAN RESOURCE DEVELOPMENT

Inaknowledge-basedorganization,Services,Processesand Business Models can be copied, but to havecompetitiveadvantage,theorganizationalcompetencei.e.theHumanCapitalneedstobeuniqueinnature.InyourCompany,developingandsustainingacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise,byconstantlyupgradingtheirknowledgeandskillshasalwaysbeenManagement’stopmostpriority.Focus is laidon acquiringnew skills and sharpeningexisting ones, which leads to better performance,

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MECON

increases productivity and evolves our employees asbetter leaders.

Totransformourcompanyintoalearningorganizationand encourage a culture of continual developmentamongst employees, apart from conducting regulartrainings on technical, skill related and soft skill,basedonTrainingNeedAnalysis andOrganizationalRequirement, more focus was laid upon latestTechnological Advancements and developingLeadership Effectiveness. Moreover, variousKnowledge Sharing sessions have been conductedthroughconcerneddomainexperts.Managementhasachieved1556Mandaysoftraininganddevelopment(Technology–598Mandays,Skill related–557MandaysandSoftSkill–401Mandays)asagainstthetargetof1300Mandaysfixedforthefinancialyear.

Apartfromthis,tofacilitateholisticdevelopmentandincreaseproductivity,employeeengagementactivitiessuchasHealthAwarenessPrograms,Quizcompetitions,Debatecompetitions,RetirementPlanning, etc.,wereorganized on regular basis.

16.0 PERSONNEL & WELFARE

EmployeesstrengthofyourCompanyattheendoftheyear i.e., as on31.03.2019was 1284.Outof the totalstrength of 1284, 249 belong to SC, 135 belong theST categories& 11 belong to PWD category.Out ofthe total strength of 1284 employees, 127 are femaleemployees.

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

NumberofCasesfiled

Numberofcasesdisposed.

Nil Nil

16.2 AsperDPEGuidelines,WomeninPublicSector(WIPS) Cell was established in your companyinNovember,2015 fordevelopmentofwomenemployeesandforpromotingtheirinteractionswith women employees of other public sectorunits.

17.0 INDUSTRIAL RELATIONS

TheCompany focused on employee relationship andall employee related matters were addressed leading to greater satisfaction of the employees. The workatmosphere remained healthy and harmonious andthishelpedtheCompanytoachievebetterproductivity.TheCompanycontinuedtohavepeacefulandcordialrelations with the employees and most of the issueswereresolvedthroughinteractionsanddialoguewiththe representatives of Non-Executive and Executive

employees. Liaison with other associated externalagencies was also maintained cordially and on regular basis.

18.0 ACTIVITIES / STEPS TAKEN FOR THE WELFARE OF SC / STs IN THE COMPANY.

In addition to its corporate and business objectives,theCompanyisfullyawareofitssocialresponsibilitiesfordevelopmentandwelfareofmembersofScheduledCaste / Scheduled Tribe Communities.The strengthandnumberofSC/STcandidatespresentlyemployedinyourCompanyareindicatedbelow:

Cat./Group

Man-power as on 31st

March, 2019

SC ST PWDNo % No % No %

A 1131 225 19.89 68 6.10 6 0.53B 56 7 12.50 23 41.07 0 0C 97 17 17.53 44 45.36 5 5.15Total 1284 249 19.39 131 10.51 11 0.86

The Company has adopted adequate measures forsafeguarding their interests and welfare, such aspromotion as per general trend, power regard forhumanrights,equalityand impartiality inall spheresofactivitiesandprovidingabundantopportunitiesforselfdevelopmentthroughsports,cultural,educationalandrecreationalfacilities.ScheduledCaste/ScheduledTribeemployeesandtheirfamiliesresidinginShyamaliTownshipenjoyallthefacilitiesasavailabletoothers.InordertoimplementtheGovernmentofIndiaDirectivesand Post-based Rosters with regard to recruitmentandpromotionofSCs/STs,andSC/STCellhasbeenformedwithDeputyGeneralManagerI/c(Personnel)as Liaison Officer.The SC/ST Cell maintains properrecord regarding recruitment and promotion and statisticsofSC/STemployeesandfurnishesreportstotheMinistry of Steel on regular basis.TheCompanyhas made consistent efforts to accommodate SC/STcandidatesinallrecruitmentsinMECONaswellasinpromotiontothenexthighergradeasperGovernmentdirective.

Allpossiblestepsaretakentofillupthepostinreservedcategory as per Government Directives issued fromtime to time.

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

AsprovidedunderSection135 readwithSchedule–VII to the Companies Act, 2013 your Company has

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MECON

MECON Limited

carriedoutCSRactivities,mainlyfocusedonSanitation(SwachhBharatAbhiyan),Healthcare,DrinkingWater,Education, Skill development & Livelihood, Ruraldevelopment, etc. out of carried over fund from FY2017-18andfundallocatedforFY2018-19.ThedetailsareenclosedvideAppendix – II.

20.0 OFFICIAL LANGUAGE POLICY (USE OF RAJBHASHA)

YourCompanyiseffectivelyimplementingtheOfficialLanguagePolicyofGovt.ofIndiainitsofficialwork.ItisalsomakingallouteffortstoachievethetargetsfixedintheAnnualProgrammeissuedbyRajbhashaVibhag,Ministry of Home Affairs, Govt. of India. For thispurpose,thereisanOfficialLanguageImplementationCommittee under theChairmanship ofCMD.Hindiworkshops are being organised regularly for theemployees.YourCompanyisanimportantmemberofTown Official Language Implementation Committee(TOLIC), Ranchi and actively participates in all theprogrammes.

Joint Director (Rajbhasha), Ministry of Steel, Govt.ofIndiainspectedtheprogressiveuseofHindiatourHeadOffice,Ranchion11thMay,2018.TheDy.Director(Rajbhasha),HomeMinistry,Govt.ofIndiainspectedtheprogressiveuseofHindiinourDelhiOfficeon10th

October,2018.

Rajbhasha Vibhag of the Company had organisedfollowingeventsduring2018-19.

¾ Inhouse Hindi Natak was organised on 7th

July,2018inourCommunityHall.

¾ AllIndiaRajbhashasymposiumwasorganisedon 7th September, 2018 at our Head Office,Ranchi.Ithastwosessions,thethemeoffirstsessionswas“MakeinIndia:TheroleofPSU’sofMinistryofSteel”andthethemeofSecondSessionswas“TheRoleofRajbhashaHindiinrespectofWorldseneriao”.InthissymposiumSriAnandKumar,JointDirector(Rajbhasha),Ms.AsthaJain,AssistantDirector(Rajbhasha),MinistryofSteel,Govt.ofIndia&SriPrabhatVermaandDr.VikasDave,MemberofHindiAdvisioryCommittee,MinistryofSteel,Govt.ofIndiawerepresentasaSpecialGuest.Inthissymposia many delegates also participated fromdifferentPSU’sunderMinistryofSteellike RINL, NMDC, SAIL, Ferro Scrap Ltd.,MSTCetc.

¾ “Hindi Pakhwara” was observed at HeadOffice aswell as in all the site offices of thecompanyfrom14.09.2018to28.09.2018.On

this occasion all employees took a pledgeto increase use ofHindi in their day to dayofficial work. During the “Hindi Pakhwara”competitions of various nature were alsoorganized at Head Office and other officesof the Company. A special Hindi workshopandaRajbhashasymposiumon“UnicodekejariyeHindimeKam-Kaj”werealsoorganisedduringtheHindiPakhwara.

¾ Organised“HashyaKaviSammelan”atHeadoffice.

¾ Organised “Three-days Natkotsab” at Headoffice.

¾ “Noting & Drafting” Competition was alsoorganised on 27th February, 2019 onTOLIClevel.InthecompetitionparticipantsfromallTOLICmembers(PSU),Ranchitookpart.

¾ Obligatory Hindi Training for Non-Hindispeaking personnel of the company wasorganised from January-May,2019 (Session)coveringPrabodh,Praveen&Pragyaclassesswhichwasattendedby10employees.

21.0 VIGILANCE ACTIVITIES

TheVigilance set up of the Company is functioningunderShriUpkarKumarKedia,ITS,CVO(FullTime)whotookchargeon30.10.2017.CVOoftheCompanyprovides a link between the organization and theAdministrativeMinistry,CVCandCBIandalsoactsasaspecialassistant/advisortoCMDandreportsdirectlytohiminallmatterspertainingtovigilance.

Efforts are on to continuously enhance transparencyin various business activities of the company withuseof computerizationand leveragingof technology.Emphasis is laid on preventive vigilance, spreadingawareness, surveillance and analysis of systems &procedures indetail toensureoptimumutilizationofresources, appropriate & timely decisions, correctiveaction against defaulters and transparency &accountabilityinthesystem.Inthisdirectionrelevantcirculars and guidelines from CVC and statutoryauthorities,asandwhenissued,areputinthein-houseintranet ‘meconinfo’ forwider circulation among theemployees.Vigilancearticlesarealsopublishedinthein-housepublicationswheneverpossible.

Complaints, as and when received, are investigatedpromptlybyVigilanceDepartmentaftercheckingtheirveracity wherever needed. Sensitive sections/ areasin the organization have been identified and thrustis laid on conducting surprise inspections, regular

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MECON

inspections,scrutinyoffiles&studiesintheseareasandsuitablesuggestionsincludingjobrotationaregivenforimprovementinthesystemtoeliminatediscrepanciesfound, if any. A number of suggestions given byVigilance Department for systemic improvementand streamlining various procedures have beenimplementedandtheprocessiscontinuing.

Online Vigilance Clearance System for the purposeof vigilance clearance/ status of employees in case ofpromotion, resignation, retirement etc. exists and Vigilance Department maintains a computerizeddatabase.SubmissionofAnnualPropertyReturnshasbeenmadeonline in theCompanyandAPRs for theyear2018havebeensubmittedbytheemployeesanditsdatabase is maintained and is continuously scrutinized and monitored.

IntegrityPact(IP)isfunctionalinyourCompanysince2007underanIndependentExternalMonitorwho isresponsibleforoverseeingtheprocessofprocurementand transactions where Integrity Pacts are signedbetween your Company and counterparties. Your Company enters into Integrity Pact with vendors/suppliers/contractorsforordersofonecrore&aboveforEPCProjectsandforordersof₹25.0lakh&aboveforTownAdministrationandIn-houseProcurement.ThedraftIPformspartoftenderdocuments,whereverapplicable.TillMarch2019,yourCompanyhassignedIntegrityPact(IP)with196suppliers/contractors.Sofarnorepresentation/complaints/disputeshavebeenreceivedinthemattersoftendersandcontractsunderIP.

Vigilance Awareness Week-2018 was observed atCompany’s Head Office, Ranchi and at various SiteOfficesi.e.Delhi,Bangalore,Bhilai,Burnpur,Durgapur,Kolkata, Visakhapatnam, Nagarnar (Chhattisgarh),Rourkela from 29th October to 3rd November 2018inwhich the employees& studentsparticipatedwithenthusiasm. As part of outreach activities awarenessprogrammes in various forms were conducted inseveral schools & colleges located in these placesin course of observance of VAW-2018. The themefor observing Vigilance Awareness Week 2018 was“EradicateCorruption–BuildaNewIndia”.

Programsuchastalks,interactivesessions,presentation,essay competition, poster and painting competition, vigilance walk, were also organized in these offices/Institutions across the country for sensitizingemployees & participants against corruption. Paneldiscussionswerealsoorganizedontopicsofsensitiveareasofworking.

Complaint Handling Policy has been uploaded

on Company’s website with a provision of lodgingcomplaint online which is accessible to commonindividuals.ContactDetailsofCVOandSeniorOfficialsofVigilance department,Organizational Structure ofDepartment,VigilanceQualityPolicyoftheCompany,ISO Certificate of Vigilance Department, HandbookofCVCCirculars&Guidelines,ResolutiononPublicInterestDisclosures&ProtectionofInformer(PIDPI),IntegrityPacthavebeenuploadedintheVigilancetabavailable on the Company’s website. Whistle BlowerPolicy, Fraud Prevention Policy and RTI Manualhave been uploaded on Company’s website www.meconlimited.co.in.

YourcompanyispleasedtosharewithyouthatonlineBillWatchSystemhasbeencombinedwithCompany’sGST system (MecGST) w.e.f. 01.09.2018 to enabledisplay of status of payments of vendor’s/ supplier’sbills/invoicesmoreeffectivelyandavoidingduplicationofdata entry for twodifferent systems. Itwould alsoensurecompliancewithrecentinstructionsfromCVCon monitoring & release of payments to vendors/suppliers/contractors.

YourCompanyispleasedtoinformyouthatVigilanceDepartment follows a well-established QualityManagementSystem(ISO9001:2008)whichhasbeencertifiedbyTUVIndiaPvt.Ltd.(asubsidiaryofTUVNORDCERTGmbh,Germany)andthedepartmentisintheadvancestagesformeetingtherequirementstogetupgradedtoISO9001:2015certification.

22.0 DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT.

The Company has a Risk Management Policywith the objective of managing the potential risksand reducing the risk exposure in the long run bycontinual identification, assessment / monitoringand management of risks associated with its overallbusiness processes and operations.

The Company’s risk management frameworkencompassesallareasofoperationincludingtechnical,marketing, contracts, financial andhuman resources.ManagementisaccountabletotheBoardforeffectiveimplementation of risk management strategies in allrelevantareasofcompanyoperations.Forthispurpose,periodicreviewsareheldbothattheoperationallevelsand at the corporate level to identify and prepareactionplans to address anynew risk or harness newopportunities that have arisen or likely to emergeand also toprevent / eliminate the instancesofnon-compliancewithlaws&regulations.

TheCompany’sriskmanagementandcontrolsystemsprovideareasonableassurancetowardstherealization

23

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MECON Limited

of strategic objectives of the organization. Duringthe year under review there was no such potentialriskwhichcouldhavethreatenedtheexistenceoftheCompany. However, in view of the ever increasingcomplexitiesofbusinessmodelsandmarketdynamics,yourcompanyisintheprocessofupgradingtheRiskManagementframework.

23.0 RIGHT TO INFORMATION

In line with the directives of the Government ofIndia, your Company has implemented the Rightto Information Act, 2005 from the date of itsimplementation. All relevant manuals pertaining toRTI Act, 2005 have been hoisted on the Company’swebsite www.meconlimited.co.in w.e.f 19.09.2005andaretimelyupdated.APublicInformationOfficer(PIO)hasbeennominatedby theManagement at itsHeadquarters and various Asst. Public InformationOfficers(APIO)havebeennominatedatHeadOfficeas well as various Regional and Site offices of theCompany.Thequeriescoming to theCompany fromthe public are being attended to by these nominatedofficialsandrepliedbacktotheapplicantbythePublicInformationOfficerwithinthestipulatedtimeperiod.

Allquarterlyandannualreturnsaretimelye-filedwiththeStatutoryAuthorities.

24.0 CHANGES IN BOARD OF DIRECTORS DURING F.Y 2018-19.

ShriR.H.JunejawasappointedasDirector(Finance)w.e.f.20.04.2018.

Shri Sunil Barthwal, IAS who was appointed asGovernmentDirectoron11.10.2017ceased tobe thedirectoroftheCompanyw.e.f.24.05.2018.

ShriT.SrinivaswasappointedasGovernmentDirectoron24.05.2017ceasedto thedirectorof theCompanyw.e.f.16.07.2018.

Smt. Rasika Chaube, Additional Secretary, MinistryofSteelwasappointedasGovernmentDirectorw.e.f.16.07.2018.

Shri Deepak Krishan was appointed as Part- timeIndependentDirectorw.e.f.14.12.2018.

25.0 MANAGEMENT DISCUSSION & ANALYSIS REPORT

The Management Discussion & Analysis ReportcoveringtheperformanceandoutlookoftheCompanyisenclosedvideAnnexure-II.

26.0 CORPORATE GOVERNANCE

Thecompanyhas compliedwith the requirementsofCorporateGovernanceGuidelines issuedbyGovt. ofIndia.The detail in this regard forming part of thisreportisenclosedvideAnnexure-III.

27.0 AUDITORS

M/s. V. Rohatgi & Co, Chartered Accountants, wasappointed as the Statutory Auditors for the financialyear2018-19bytheComptroller&AuditorGeneralofIndia(C&AG).Theyhavealsobeenassignedtocarryout theauditunderSection44ABof the IncomeTaxAct,1961forthefinancialyear2018-19.

28.0 DIRECTOR’S RESPONSIBILITY STATEMENT

PursuanttotherequirementunderSection134(5)ofthe Companies Act, 2013 with respect to Director’sResponsibilityStatement,itisherebyconfirmedthat:

i) In the preparation of the annual accounts forthe financial year ended 31stMarch, 2019, theapplicable accounting standards had beenfollowedalongwithproperexplanationrelatingto material departures;

ii) The Directors had selected such accountingpoliciesandappliedthemconsistentlyandmadejudgments and estimates that are reasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitorlossoftheCompanyforthatperiod;

iii) The Directors had taken proper and sufficientcareforthemaintenanceofadequateaccountingrecords in accordance with the provisions ofthe Companies Act, 2013 for safeguarding theassets of theCompany and for preventing anddetectingfraudand otherirregularities;.

iv) TheDirectorshadpreparedtheannualaccountsforthefinancialyear2018-19onagoingconcernbasis; and

v) The Directors had devised proper systemsto ensure compliance with the provisions ofall applicable laws and that such system wereadequateandoperatingeffectively.

29.0 INDEPENDENT DIRECTOR DECLARATION

In terms of Section 149(7) of the Companies Act,2013,necessarydeclarationhavebeengivenbyPart-timeIndependentDirectorsstatingthattheymeetthecriteriaofindependenceasprovidedinSection149(6)oftheCompaniesAct,2013.

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MECON

30.0 ACKNOWLEDGEMENT

The Directors commend the indefatigable effortsof the employees at all levels which has contributedimmensely to the growth of the Company this year.Their dedication and commitment will stand theorganisation in good stead tomeet the challenges infuture.

MECON has also enjoyed unstinting support andguidance from all theMinistries of the Governmentof India, particularly the Ministry of Steel, StateGovernments etc. All the stakeholders, especiallythe suppliers, customers and business partners, haveextended tremendous support towards the success oftheOrganisation.

TheDirectorsassureoftheirunwaveringfocusonthe

strategicplansofyourCompanytosteeritresponsiblytostellarheights.

Forandonbehalfofthe BoardofDirectorsof MECONLimited

AtulBhatt ChairmanandManagingDirector

Place:Ranchi

Date:28.09.2019

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MECON Limited

Appendix - I

EXTRACT OF ANNUAL RETURNAs on financial year ended on 31.03.2019

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014.I. REGISTRATION & OTHER DETAILS:

1 CIN U74140JH1973GOI0011992 RegistrationDate 31.03.19733 NameoftheCompany MECONLIMITED4 Category/Sub-categoryoftheCompany PRIVATECOMPANY

GOVERNMENTCOMPANY5 AddressoftheRegisteredoffice&contactdetails VIVEKANANDAPATH,P.O.DORANDA,

RANCHI-834002(JHARKHAND)6 Whetherlistedcompany NO7 Name,address&contactdetailsoftheRegistrar&

TransferAgent,ifany.NIL

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated)

Sl. No.

Name and Description of main products / services

NIC Code of the Product/service

% to total turnover of the company

1 CONSULTANCYSERVICES 80.00%

2 CONSTRUCTIONCONTRACTS 20.00%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl No

Name and address of the Company

CIN/GLN Holding/ Subsidiary/ Associate

% of shares held

Applicable Section

1 METALLURGICAL&ENGINEERINGCONSULTANTS(NIGERIA)LTD.

– JOINTVENTURE 50%

2(6)OFCOMPANIESACT,2013

IV. SHARE HOLDING PATTERN (Equitysharecapitalbreakupaspercentageoftotalequity)(i) Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the

year Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

A. Promoters

(1) Indian - - - - - - - - -

a) Individual/ HUF - 240 240 0.0006% - 240 240 0.0006% 0.0000%

b) Central Govt - 40,138,120 40,138,120 99.9994% - 40,138,120 40,138,120 99.9994% 0.0000%

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

FORM NO. MGT 9

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MECON

Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the

year Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

d) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000%

e) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%

f) Any other - - - 0.0000% - - - 0.0000% 0.0000%

Sub Total (A) (1) - 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%

(2) Foreign

a) NRI Individuals

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

b) Other Individuals

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

c) Bodies Corp. - - - 0.0000% - - - 0.0000% 0.0000%

d) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%

e) Any other - - - 0.0000% - - - 0.0000% 0.0000%

Sub Total (A) (2) - - - 0.0000% - - - 0.0000% 0.0000%

TOTAL shareholding of promoter (A) = (A) (1) + (A) (2)

- 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%

B. Public Shareholding

1. Institutions

a) Mutual Funds - - - 0.0000% - - - 0.0000% 0.0000%

b) Banks / FI - - - 0.0000% - - - 0.0000% 0.0000%

c) Central Govt - - - 0.0000% - - - 0.0000% 0.0000%

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

e) Venture Capital Funds

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

f) Insurance Companies

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

g) FIIs - - - 0.0000% - - - 0.0000% 0.0000%

h) Foreign Venture Capital Funds

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

i) Others (specify)

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

Sub-total (B)(1):- - - - 0.0000% - - - 0.0000% 0.0000%

2. Non-Institutions

a) Bodies Corp.

i) Indian - - - 0.0000% - - - 0.0000% 0.0000%

ii) Overseas - - - 0.0000% - - - 0.0000% 0.0000%

b) Individuals

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

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

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MECON Limited

Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during the

year Demat Physical Total% of Total

SharesDemat Physical Total

% of Total Shares

ii) Individual shareholders holding nominal share capital in excess of Rs 1 lakh

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

c) Others (specify)

Sub-total (B)(2):- - - - 0.0000% - - - 0.0000% 0.0000%

Total Public (B) = (B) (1) + (B) (2)

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

C. Shares held by Custodian for GDRs & ADRs

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

Grand Total (A+B+C)

- 40,138,360 40,138,360 100.0000% - 40,138,360 40,138,360 100.0000% 0.0000%

(ii) Shareholding of Promoters

S N

Shareholder’s Name

Shareholding at the beginning of the year Shareholding at the end of the year

% change in shareholding

during the year

No. of Shares

% of total Shares of the

company

% of Shares Pledged/

encumbered to total shares

No. of Shares

% of total Shares of the

company

% of Shares Pledged /

encumbered to total shares

1 THE PRESIDENT OF INDIA

40,138,120 99.9994% NIL 40,138,120 99.9994% NIL 0.0000%

2 SMT. RASIKA CHAUBEY, Govt. Director & Additional Secretary, Ministry of Steel*

120 0.0003% NIL 120 0.0003% NIL 0.0000%

3 SHRI ATUL BHATT, CMD*

120 0.0003% NIL 120 0.0003% NIL 0.0000%

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

*heldasnomineeshareholderofthePresidentofIndia.

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

SN ParticularsShareholding at the beginning of

the yearCumulative Shareholding during

the year

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

Atthebeginningoftheyear

-NOCHANGE-

Date wise Increase /Decrease in PromotersShare holding during theyearspecifying

Attheendoftheyear

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MECON

(iv) Shareholding Pattern of top ten Shareholders

(OtherthanDirectors,PromotersandHoldersofGDRsandADRs):

SN For each of the Top 10 shareholders

Shareholding at the beginning of the year

Cumulative Shareholding during the year

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

At the beginning oftheyear

-NIL-

Date wise Increase/Decrease inPromoters Shareholding during theyearspecifying

At the end of theyear (oron thedateof separation, ifseparatedduringtheyear)

(v) Shareholding of Directors and Key Managerial Personnel:

SN For each of the Directors and Key Managerial Personnel

Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares % of total shares

No. of shares % of total shares

1 Smt. Rasika Chaube, Government Director & Additional Secretary, Ministry of Steel*

Atthebeginningoftheyear 120 0.0003% 120 0.0003%

Date wise Increase /Decreasein Share holding during theyear specifying the reasons forincrease/decrease

- 0.0000% - 0.0000%

Attheendoftheyear 120 0.0003% 120 0.0003%

2 Shri Atul Bhatt, Chairman and Managing Director*

Atthebeginningoftheyear 120 0.0003% 120 0.0003%

Date wise Increase /Decreasein Share holding during theyear specifying the reasons forincrease/decrease

- 0.0000% - 0.0000%

Attheendoftheyear 120 0.0003% 120 0.0003%

*heldasnomineeshareholdersofthePresidentofIndia

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MECON Limited

V. INDEBTEDNESS

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment.

(Amt.₹/Lakh)

Particulars Secured Loans excluding deposits

Unsecured Loans

Deposits Total Indebtedness

Indebtedness at the beginning of the financial year

i)PrincipalAmount

ii)Interestduebutnotpaid

iii)Interestaccruedbutnotdue - -

Total (i+ii+iii) - -

Change in Indebtednessduring thefinancialyear

*Addition

*Reduction - -

NetChange - -

Indebtedness at the end of the financial year

i)PrincipalAmount

ii)Interestduebutnotpaid

iii)Interestaccruedbutnotdue

Total (i+ii+iii) NIL NIL

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MECON

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

S N.

Particulars of Remuneration

Name of Managing Director / Whole time Director / Manager (Shri) Total Amount

Atul Bhatt P. K. Sarangi Gautam Chatterjee

Salil Kumar RH Juneja

Period From 01-04-18 to 31-03-2019

1 Gross salary

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

2,758,070.00 2,758,751.00 2,514,684.00 2,707,800.00 2,088,448.00 12,827,753.00

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

181,785.00 282,502.00 172,118.00 156,612.00 206,689.00 999,706.00

(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961

-

2 Stock Option -

3 Sweat Equity -

4 Commission -

- as % of profit -

- others, specify -

5 Others, please specify -

Total (A) 2,939,855.00 3,041,253.00 2,686,802.00 2,864,412.00 2,295,137.00 13,827,459.00

B. Remuneration to other Directors

S N. Particulars of Remuneration

Independent DirectorsTotal

AmountShri Sisir Kumar Appikatla

Shri Deepak Krishnan (w.e.f. 23.01.2019)

1

FeeforattendingboardcommitteemeetingsCommission - - -Others,pleasespecify 135,000.00 15,000.00 1,50,000.00Total(1) 135,000.00 15,000.00 1,50,000.00

S N. Particulars of Remuneration

“Other Non- Executive Directors Shri Saraswati Prasad, IAS,

Smt Rasika Chaube (w.e.f. 16.07.18) Shri T Srinivas, (from 24.05.18 to 16.07.18) &

Shri Sunil Barthwal, IAS (upto 24.05.18)”

Total Amount

2

FeeforattendingboardcommitteemeetingsCommission - -Others,pleasespecify - -Total (2) - - - Total (B)=(1+2) - - 1,50,000.00Total Managerial Remuneration - - 1,50,000.00

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MECON Limited

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

SN.Particulars of Remuneration Name of Key Managerial Personnel Total

AmountName & Designation CEO Company Secretary CFO1 Gross salary

-NA-

(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961

(b)Valueofperquisitesu/s17(2)Income-taxAct,1961

(c)Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961

2 StockOption3 SweatEquity4 Commission

-as%ofprofit-others,specify

5 Others,pleasespecifyTotal

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Companies Act

Brief Description

Details of Penalty /

Punishment/ Compounding fees imposed

Authority [RD / NCLT/

COURT]

Appeal made, if any (give

Details)

A. COMPANYPenalty

NILPunishmentCompoundingB. DIRECTORSPenalty

NILPunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenalty

NILPunishmentCompounding

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MECON

ANNEXURE-A

(Pursuant to Clause (h) of sub section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

------------------------------------------------------------------------------------------------------------------

Form for disclosure of particulars of contracts/ arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto

1. Detailsofcontractsorarrangementsortransactionsnotatarm’slengthbasis

(a) Name(s)oftherelatedpartyandnatureofrelationship NIL

(b) Natureofcontracts/arrangements/transactions NA

(c) Durationofthecontracts/arrangements/transactions NA

(d) Salienttermsofthecontracts/arrangementsortransactionsincludingthevalue,ifany

NA

(e) Justificationsforenteringintosuchcontactsorarrangementsortransactions NA

(f) Date(s)ofapprovaloftheBoard NA

(g) Amountpaidasadvance,ifany NA

(h) Date on which the special resolution was passed in the general meeting asrequiredunderfirstprovisotosection188

NA

2. Detailsofmaterialscontactsorarrangementsortransactionsatarm’slengthbasis

a) Name(s)oftherelatedpartyandnatureofrelationship NIL

b) Natureofcontracts/arrangements/transactions NA

c) Durationsofthecontracts/arrangements/transactions NA

d) Salient terms of the contracts or arrangements or transactions including thevalue,ifany

NA

e) Date(s)ofapprovaloftheBoard,ifany NA

f) Amountpaidasadvance,ifany NA

AtulBhatt ChairmanandManagingDirector

FORM AOC- 2

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MECON

MECON Limited

APPENDIX- II

1. a) Brief Outline of CSR & Sustainability Policy of MECON Limited

� The CSR & Sustainability policy of your Company is in accordance with the provisionsof the Companies Act, 2013 and DPE guidelines and is approved by the Board based onthe recommendation of the CSR & Sustainability Committee. The Board approved CSR &Sustainability Policy of the Company is available at www.meconlimited.co.in/Writereaddata/Downloads/CSR_Policy.pdf

� YourCompanyhastwo-tierorganizationalstructuretosteertheCSRagenda.TheBoardLevelCSR&SustainabilityCommitteecomprisingofaPartTimeIndependentDirectorasChairmanandtwofunctionalDirectorsasMembersandateamofcross-sectionofemployees,headedbyaNodalOfficerconstitutesthetwo-tierorganizationstructure.

� TheannualbudgetforCSRandSustainabilityisapprovedbyBoardofDirectors.

� TheCSRplansareformulatedandapprovedbyCSR&SustainabilityCommitteeandratifiedbyBoardofDirectors,aspertheprovisionofCompaniesAct,2013andDPEguidelines.

� YourCompanyspendsineachfinancialyear,atleast2.0%oftheaveragenetprofitsmadeduringthe three immediatelyprecedingfinancial years.Anyunspent/unutilized fundof aparticularyear,iscarriedforwardtothefollowingyear.

� TheoverallresponsibilityofCSRplanslieswiththeNodalOfficer,CSR&Sustainability.

� TheCSR&SustainabilityactivitiesofyourCompanyareasperSchedule-VIItotheCompaniesAct,2013,with special attention to thedevelopmentofweaker/marginalized/underprivilegedsectionsof the society includingSC/ST/OBC/Minorities,womenandchildren,oldandaged,physicallychallengedetc.

� AlltheCSRactivitiesareimplementedinprojectmode.

� YourCompanyhavingexpertiseinEngineeringandProjectManagement,alltheCSRprojectsaremonitoredbytheCompanyitself.

� TheimplementationandmonitoringofCSRactivitiesareoverseenbytheCSR&SustainabilityCommittee.

� AsperBoard’sapprovedCSR&Sustainabilitypolicy,ImpactAssessmentforallcompletedCSRprojects/activitiesuptoprojectcostof₹50.0lakharecarriedoutbytheCompany.However,whereprojectcostexceedsof₹50.0lakh,theImpactAssessmentiscarriedoutbyexternalagency.

� YourCompany reports / disclosesCSR activities to stakeholders through its official website:www.meconlimited.co.in/csr.aspxanditsAnnualReportat:www.meconlimited.co.in/Annual_Report.aspx.

b) ThedetailsofCSRProjectsapprovedbytheBoardofDirectorsisavailableatwww.meconlimited.co.in/csr_activities_planned.aspx

c) ThemainhighlightsofCSRProjects/ActivitiesundertakenbyyourCompanyduringtheyearareasfollows:

i) Sanitation(SwachhBharatAbhiyan)

ii) Healthcare

iii) DrinkingWater

iv) Education

v) SkillDevelopment&Livelihood

CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY

34

MECON

vi) SocialWelfare

vii) RuralDevelopment

viii)Otheractivities/MiscellaneousPrograms

2. Composition of the CSR Committee

� ThelastreconstitutedCSR&SustainabilityCommitteewhichwasinplaceason31.03.2019,consistsofthefollowingDirectors:

i) ShriSisirKumarAppikatla

PartTimeIndependentDirector

ii) ShriPradiptaKumarSarangi

Director(Technical)

iii) ShriRajendraHarbhagwanSinghJuneja

Director(Finance)

ThedetailsonlatestreconstitutedCSR&SustainabilityCommitteeisavailableatwww.meconlimited.co.in/Board_level_comitte_csr.aspx

3. a) Net Profit for CSR for the last 3 financial years are as follows :

2015-16 : ₹(-)17,496.18 Lakh2016-17 : ₹(-) 8,815.32 Lakh2017-18 : ₹ 4,397.97 Lakh

b) AverageNetProfitforthelast3financialyears : ₹(-)7,304.51Lakh

4. a) Funds allocable towards CSR expenditure for the : NIL FinancialYear2018-19(AsperSection-135of TheCompaniesAct,2013)

b) FundsallocatedtowardsCSRexpenditure : ₹87.96Lakh fortheFinancialYear2018-19 {2%ofAdjustedPBT(i.e.,Rs.4,397.97Lakh)for FY2017-18asperDPEGuidelines}

5. DetailsofCSRfundspentduringthefinancialyear2018-19,areindicatedinAnnexure-I. Mannerinwhichtheamountspentareasgivenbelow:

a) Totalamountavailableforthefinancialyear2018-19:

i) Unspent(Carry-over)fund : ₹456.07Lakh*

ii) Allocationforfinancialyear2018-19 : ₹87.96Lakh

Totalamount: ₹544.03Lakh

(*) Refer Note 40.20 “Disclosure on CSR” reported under Financial Statement in the Annual Report of the Company for the FY 2017-18

b) TotalamountspentonCSRactivitiesduringthefinancialyear2018-19 : ₹16.92Lakh

c) Amountunspent(tobecarriedtonextfinancialyear(i.e.FY2019-20) : ₹527.11Lakh

6. Reasons for not spending the amount:

6.1 ThemajorityofCSRprojects/activitiesareinfrastructuredevelopmentprojectswhichtaketimeinconceivingtheproject,carryingoutbasicdesign&detailedengineering,tendering,andthenconstruction,etc.

6.2 ThefollowingprojectsaslistedbelowcouldnotbecompletedinFY2018-19duetothereasonsasindicated:

35

MECON

MECON Limited

i) ConstructionofBoysHostelBuildinginOrphanageatVillage-Sungi,Khunti[Sl.No.4(i)ofListofCarry-overProjectsforFY2018-19]:

DuringFY2017-18,thetenderfortheaboveprojectwasinvitedinFebruary’2018.However,astheL1partyhadquoted thepricewhichwas veryhigh compared to the approved cost estimate, thetenderwascancelledinJuly’2018.TheprojectwasretenderedinOctober’2018andtheWorkOrderwasplacedonContractorinMarch’2019.Theconstructionworkatsiteisunderprogress.

ii) ConstructionofBorewellatOldAgeHome,Nagri,Ranchi[Sl.No.4(ii)ofListofCarry-overProjectsforFY2018-19]:

ThetenderfortheaboveprojectwasinvitedinAugust’2018.Inspiteofextendingtheduedateoftendersubmissiontwice,noofferwasreceived.ThetenderwasagaininvitedwithrevisedEligibilityCriteriainOctober’2018.Despiteextendingthedateofsubmissiontwice,onlyoneofferwasreceivedandtheWorkOrdercouldbeplacedontheContractorattheendofMarch’2019.Workisunderprogress at site.

iii) ConstructionofCommunityCentreinUP[Sl.No.4(iii)ofListofCarry-overProjectsforFY2018-19]:

RegularremindersweresenttoM/sHSCL(AsubsidiaryofNBCC)tocompletethebalanceworkofaboveprojectandsubmittheirbillsinlinewithGSTalongwithAnti-profiteeringdeclaration,buttheyareyettosubmitthesame.

iv) AlltheprojectsmentionedbelowarecompleteandhandedovertotheBeneficiaries.Thefinalbillsofsameareunderprocessingforreleaseofpayment.

a) ConstructionofToiletBlockinVillageSchoolofAdoptedVillage-Pancha[Sl.No.5(i)ofListofCarry-overProjectsforFY2018-19]

b) ConstructionofToiletComplexinAdoptedVillage-Pancha[Sl.No.5(ii)ofListofCarry-overProjectsforFY2018-19]

c) ConstructionofToiletBlockforGirlsinOrphanageofAdoptedVillage-Sungi[Sl.No.5(iv)ofListofCarry-overProjectsforFY2018-19]

d) ConstructionofToiletBlockforBoysinOrphanageofAdoptedVillage-Sungi[Sl.No.5(v)ofListofCarry-overProjectsforFY2018-19]

v) ConstructionofToiletComplexinAdoptedVillage-ParsaToli,Pancha[Sl.No.5(iii)ofListofCarry-overProjectsforFY2018-19]

TheContractorhassubmittedthe5thRAbill,whichisunderprocessingforreleaseofpayment.

vi) Constructionof1no.ofClassroominRuralareaofUP[Sl.No.5(vi)ofListofCarry-overProjectsforFY2018-19]

RegularremindersweresenttoM/sHSCL(AsubsidiaryofNBCC)tocompletethebalanceworkofaboveprojectandsubmittheirbillsinlinewithGSTalongwithAnti-profiteeringdeclaration,buttheyareyettosubmitthesame.

vii) a) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Nagri,Ranchi[Sl.No.1(i)ofListofNewProjectsforFY2018-19]:

b) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Sungi,Block-Karra,Dist.-Khunti[Sl.No.1(ii)ofListofNewProjectsforFY2018-19]

c) SolarpoweredbasedDrinkingwatersysteminAdoptedVillages–Rai,Block-Khunti,Dist.-Khunti[Sl.No.1(iii)ofListofNewProjectsforFY2018-19]

Thetenderfortheaboveprojectswere invited inNovember’2018.InMarch’2019, theofferswereunderadvancedstageofscrutinyandrecommendation.

viii) ProjectSmile:CleftlipandPalatesurgeryforpoor/down-trodden/needypatients[Sl.No.2(i)ofListofNewProjectsforFY2018-19]

36

MECON

Theinvoice(s)/bill(s)forCleftlipandPalatesurgerycarriedoutinrespectoffourpatientsareawaitedfromM/sAkilaBharathaMahilaSevaSamaj,Bengaluru.

ix) ConstructionofToiletComplexatAdoptedVillage–BarToli,Pancha,Block-Bundu,Dist.-Ranchi[Sl.No.3(i)ofListofNewProjectsforFY2018-19]:

Thetender for theaboveprojectswere invited inDecember’2018. InMarch’2019, theofferswereunderadvancedstageofscrutinyandrecommendation.

7.0 TheimplementationandmonitoringofCSRPolicy,isincompliancewithCSRobjectivesandpolicyofthecompany.

8.0 i) It is also affirmed that all the applicable clauses of Guidelines issued by DPE vide OM No.:15(13)/2013-DPE(GM)dated:21.10.2014isbeingcompliedwith.

ii) AspertheguidelinesissuedbytheDepartmentofPublicEnterprises,MinistryofHeavyIndustries&PublicEnterprisesvide ref.No.CSR-08/0002/2018-Dir (CSR)dtd.10.12.2018 for taking themebasedinterventioninSchoolEducation&HealthcareareainAspirationalDistricts(asidentifiedbyNITIAayog),yourCompanyidentifiedprojectsrelatedtoconstructionofDrinkingwaterfacilitiesinAdoptedvillagesofRanchi&KhuntiDistrictsof Jharkhand(plannedasHealthcare)andCleftLip&PalateSurgeryforpoor/downtrodden/needypeopleatVisakhapatnam,andwhichareunderprogress.

Pradipta Kumar Sarangi Director(Technical)

Sisir Kumar Appikatla Chairman(CSRCommittee)

37

MECON

MECON Limited

ME

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38

MECON

ME

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39

MECON

MECON Limited

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Fina

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(in

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La

khs)

Expe

nses

do

ne in

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12-

13,

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, 15-

16,

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17

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(in

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ned

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on

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s. L

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ndix-D

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no.

of

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in

whi

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priv

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d ch

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13

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unity

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catio

n Ce

ntre

s

• H

onor

ariu

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teac

hers

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mat

eria

ls,

Stat

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• St

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(FY

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#Pur

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e of

pla

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mat

s

Educ

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n Vi

ll.-

Obe

ria,

Vill.

- G

anyo

rTol

i, Vi

ll.-P

okha

rTol

i, Ir

gooT

oli

(2

nos.

),

Argo

ra,

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nath

pur,

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avid

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ohal

la,

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i, Pa

thar

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pr

oper

& n

ear

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chi;

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–

Rup

ru, A

ngar

a Bl

ock

of R

anch

i D

istr

ict

&Vi

ll. –

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of

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ti di

stric

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hark

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3,12

,000

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00

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,000

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on-

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inan

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46

MECON

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34

56

78

9

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No.

CSR

Pro

ject

s or

act

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tifie

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in

whi

ch th

e Pr

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t is

cove

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Proj

ects

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rogr

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for

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atch

)•

Annu

al E

xam

inat

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Annu

al E

xam

inat

ion

(FY

2017

-18)

:#

Annu

al E

xam

inat

ion

Fees

# O

ther

Exp

endi

ture

rel

ated

to

Exa

min

atio

n M

ater

ial,

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cella

neou

s Ex

pens

es, e

tc.

• Cl

oths

, Stit

chin

g M

ater

ials

etc

. fo

r Tr

aini

ng (

1-19

bat

ch)

# Pu

rcha

se o

f Pla

stic

Mat

s

Wom

en

Empo

wer

men

t Sc

hem

e (E

mpl

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tiona

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ills)

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i To

la,

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anda

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istr

i M

ohal

la,

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oo,

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a,

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anj,

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nnat

hpur

in p

rope

r &

nea

r R

anch

i, Vi

ll.-

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ha,

Bloc

k –

Bund

u &

Vill

.- K

uchh

u, B

lock

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anjh

i in

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ll –

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i of K

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tric

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2,40

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9529

,430

6,00

0

Dire

ctR

egul

ar o

n-go

ing

proj

ect

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pro

gres

s –

100%

ii)Vo

catio

nal

Trai

ning

in

the

field

of

Elec

tric

al t

echn

icia

n an

d W

eldi

ng

tech

nolo

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Hon

orar

ium

to

staf

f m

embe

rs

(Mar

ch’2

018

of F

Y 20

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Voca

tiona

l Tr

ainin

g Sc

hem

e (E

mpl

oym

ent/

Live

lihoo

d En

hanc

ing

Voca

tiona

l Skil

ls)

VTI,

Shya

mal

i, R

anch

i (J

hark

hand

)

2,90

0

2,90

0

Dire

ct--

Sub-

Tota

l (5)

4,72

,000

3,66

,380

3,66

,380

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pend

iture

sare

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epts

hown

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rSl.No.8&

9

47

MECON

MECON Limited

12

34

56

78

9

Sl.

No.

CSR

Pro

ject

s or

act

ivity

iden

tifie

dSe

ctor

in

whi

ch th

e Pr

ojec

t is

cove

red

Proj

ects

or P

rogr

amm

es

1.

Loca

l are

a or

Oth

ers

2.

Spec

ify th

e st

ate

and

dist

rict

(whe

re p

roje

cts

or p

rogr

amm

es

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)Pr

ojec

t or

Prog

ram

me

wis

e

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

for

FY 2

018-

19*

Sub-

head

s :

1.

Dire

ct

expe

nditu

re

on p

roje

cts

or

prog

ram

mes

2.

Ove

rhea

ds

Cum

ulat

ive

expe

nditu

re u

pto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

e-m

entin

g ag

ency

*

Stat

us o

f the

Pro

ject

6.So

cial

Wel

fare

i)Co

nstr

uctio

n of

Com

mun

ity C

entr

e(P

roje

ct c

ost:

` 40

,55,

205)

(Car

ry-o

ver

proj

ect

of F

Y 20

13-

14)

Star

t dat

e:

07.0

6.20

13Co

mpl

etio

n da

te:

06.0

4.20

14

(10

mon

ths)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e

Akba

rpur

, D

ist.-

Kanp

ur D

ehat

, St

ate

– U

.P.

27,0

0,59

5—

6,11

,370

(in F

Y 13

-14)

+57

,450

(in F

Y 15

-16)

+6,

62,9

30

(in F

Y 16

-17)

+22

,860

(in F

Y 17

-18)

= 13

,54,

610

Dire

ctCo

nstr

uctio

n w

ork

unde

r pr

ogre

ssa)

W

ork

done

upt

o Ro

of le

vel.

b) P

hysi

cal

prog

ress

–

61.7

9%c)

Fi

nanc

ial

prog

ress

–

33.4

0%d)

Bill

s aw

aite

d fro

m

M/s

HS

CL.

e) B

alan

ce

wor

k :

Doo

rs,

Stai

r’s R

ailin

g, P

lum

bing

, Sa

nita

ry,

Plas

terin

g,

Elec

tric

al,

Pain

ting,

Se

ptic

ta

nk,

Soak

Pi

t, Bo

unda

ry w

all,

Gat

e, e

tc.

ii)Co

nstr

uctio

n of

Bor

e w

ell

at O

ld

Age

Hom

e

Drin

king

W

ater

Vik

asS

amaj

Kal

yanS

anst

han,

Vi

llage

– K

ulgu

, Bl

ock

– N

agri,

D

istr

ict -

Ran

chi

3,25

,000

——

Dire

ctW

ork

Ord

er

plac

ed

on

29,0

3.20

19.

iii)

Cons

truc

tion

of

Boys

H

oste

l in

O

rpha

nage

“An

mol

Base

ra”

(Pro

ject

cos

t: `

35,2

2,00

0)(A

ppro

ved

Proj

ect o

f FY

2015

-16)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e

Villa

ge –

Sun

gi,

Bloc

k –

Karr

a,

Dis

tric

t –

Khun

ti,

Stat

e -

Jhar

khan

d

35,2

2,00

0—

—D

irect

Phys

ical

Pro

gres

s -

1%Fi

nanc

ial P

rogr

ess

– N

IL.

Sub-

Tota

l (6)

65,4

7,59

5—

13,5

4,61

0

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rColum

n6-A

llex

pend

iture

sare

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ctexc

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hown

unde

rSl.No.8&

9

48

MECON

12

34

56

78

9

Sl.

No.

CSR

Pro

ject

s or

act

ivity

iden

tifie

dSe

ctor

in

whi

ch th

e Pr

ojec

t is

cove

red

Proj

ects

or P

rogr

amm

es

1.

Loca

l are

a or

Oth

ers

2.

Spec

ify th

e st

ate

and

dist

rict

(whe

re p

roje

cts

or p

rogr

amm

es

wer

e un

dert

aken

)

Amou

nt

outla

y (B

udge

t)Pr

ojec

t or

Prog

ram

me

wis

e

Amou

nt s

pent

on

the

proj

ects

or

prog

ram

mes

for

FY 2

018-

19*

Sub-

head

s :

1.

Dire

ct

expe

nditu

re

on p

roje

cts

or

prog

ram

mes

2.

Ove

rhea

ds

Cum

ulat

ive

expe

nditu

re u

pto

the

repo

rtin

g pe

riod

Amou

nt

spen

t: D

irect

or

thro

ugh

impl

e-m

entin

g ag

ency

*

Stat

us o

f the

Pro

ject

7.R

ural

Dev

elop

men

t

i) Co

nstr

uctio

n of

3

nos.

To

ilet

com

plex

es

(Tot

al P

roje

ct c

ost:

` 1,

60,3

4,71

5/-)

(Car

ry-o

ver p

roje

cts

of F

Y 20

12-1

3)St

art d

ate:

08

.03.

2013

(LO

I)Co

mpl

etio

n da

te:

07.

09.2

013

(6

mon

ths)

(As

per

Wor

k O

rder

)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e -

Sani

tatio

n

1)

Villa

ge R

esid

entia

l Sc

hool

(Pr

anav

anan

d Vi

dya

Man

dir)

, Pan

cha–

(1

4-se

ater

toile

t)2)

Vi

llage

– P

anch

a (1

0-se

ater

to

ilet)

3)

Villa

ge –

Pars

aTol

i, Pa

ncha

(1

0-se

ater

toile

t)Al

l the

abo

ve in

Blo

ck –

Bun

du,

Dis

t – R

anch

i, St

ate

- Jh

arkh

and

46,7

8,19

5—

18,2

7,74

5(in

FY

12-1

3) +

37,3

1,74

0(in

FY

13-1

4) +

7,65

,200

(in F

Y 14

-15)

+37

,52,

600

(in F

Y 15

-16)

+ 5,

01,7

35(in

FY

16-1

7)+

8,23

,090

(in F

Y 17

-18)

= 1,

14,0

2,11

0

Dire

ct1)

Vi

llage

Sc

hool

–

Wor

k co

mpl

ete.

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pr

ogre

ss

– 83

.14%

c)

Fina

l bi

ll un

der

proc

essi

ng

in F

inan

ced)

Bi

lls

for

addi

tiona

l w

ork

unde

r pro

cess

ing

in F

inan

ce.

2)

Vill.

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cha

– W

ork

com

plet

e.

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pr

ogre

ss

– 88

.70%

c)

Fina

l bi

ll un

der

proc

essi

ng

in F

inan

ced)

Bi

lls

for

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unde

r pr

oces

sing

in

Fi

nanc

e.3)

Vi

ll –

Pars

aTol

ia)

Ph

ysic

al

prog

ress

–

65.7

6%b)

Fi

nanc

ial

prog

ress

–

44.1

9%c)

Ba

lanc

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ork:

Pl

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ng,

Sani

tary

, Ele

ctric

s, F

inis

hing

, So

lar P

V Sy

stem

, etc

.

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llex

pend

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9

49

MECON

MECON Limited

12

34

56

78

9

Sl.

No.

CSR

Pro

ject

s or

act

ivity

iden

tifie

dSe

ctor

in

whi

ch th

e Pr

ojec

t is

cove

red

Proj

ects

or P

rogr

amm

es

1.

Loca

l are

a or

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ers

2.

Spec

ify th

e st

ate

and

dist

rict

(whe

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roje

cts

or p

rogr

amm

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wer

e un

dert

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nt

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udge

t)Pr

ojec

t or

Prog

ram

me

wis

e

Amou

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pent

on

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proj

ects

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prog

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mes

for

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Sub-

head

s :

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Dire

ct

expe

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on p

roje

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2.

Ove

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Cum

ulat

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expe

nditu

re u

pto

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repo

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riod

Amou

nt

spen

t: D

irect

or

thro

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impl

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entin

g ag

ency

*

Stat

us o

f the

Pro

ject

ii)Co

nstr

uctio

n of

1 n

o. T

oile

t com

plex

(5-s

eate

r to

ilet)

fo

r Gi

rls

at

Orp

hana

ge H

oste

l (An

mol

Base

ra)

(Pro

ject

cos

t: `

35,3

7,40

5/-)

(Car

ry-o

ver p

roje

ct o

f FY

2013

-14)

Star

t dat

e:

27.0

9.20

13

Com

plet

ion

date

:

26.0

3.20

14

(6m

onth

s)

(As

per

Wor

k O

rder

)

Infr

astr

uctu

re

Dev

elop

men

t Pr

ogra

mm

e

- San

itatio

n

Villa

ge –

Sun

gi, B

lock

– K

arra

Dis

t – K

hunt

i, St

ate

– Jh

arkh

and

10,0

6,38

5—

7,95

,590

(in F

Y 13

-14)

+

9,92

,240

(in F

Y 14

-15)

+

7,19

,295

(in

FY

15-1

6)+

23,8

95(in

FY

16-1

7)

= 25

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020

Dire

ctW

ork

com

plet

e

a)

Phys

ical

pro

gres

s –

100%

b)

Fina

ncia

l pro

gres

s –

71.5

5%

c)

Fina

l bill

und

er

proc

essi

ng in

Fin

ance

.

iii)

Cons

truc

tion

of

1 no

.Toi

let

Com

plex

(5

-sea

ter

toile

t)

for

Boys

at

O

rpha

nage

H

oste

l (A

nmol

Base

ra)

(Pro

ject

cos

t: `

35,5

7,00

5/-)

(Car

ry-o

ver p

roje

ct o

f FY

2014

-15)

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t dat

e:

04.0

9.20

14

Com

plet

ion

date

: 03

.03.

2015

(6 m

onth

s)

(As

per

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Infr

astr

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Dev

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men

t Pr

ogra

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n

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ge –

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gi, B

lock

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arra

Dis

t – K

hunt

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ate

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arkh

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+

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= 21

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720

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plet

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ess

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Fin

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Fina

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Pro

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ivity

iden

tifie

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ctor

in

whi

ch th

e Pr

ojec

t is

cove

red

Proj

ects

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2.

Spec

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repo

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g pe

riod

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nt

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t: D

irect

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Pro

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arry

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ject

of F

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art d

ate

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plet

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date

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.03.

2013

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mon

ths)

(As

per

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astr

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Dev

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men

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ogra

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stru

ctio

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ssro

om

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ge-R

aiga

on, D

ewar

iya

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al, D

ist-

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da, S

tate

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2,02

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00(in

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Y 14

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ctSo

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tric

al w

ork,

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ss

fittin

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loor

rep

air,

pai

ntin

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indo

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endi

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Phys

ical

pro

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inan

cial

pro

gres

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nstr

uctio

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No.

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ilet

Com

plex

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roje

ct c

ost:

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000)

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tatio

nVi

llage

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ar T

oli,

Panc

ha, B

lock

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u,

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ara,

D

istr

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anch

i

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adv

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sta

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min

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rain

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ther

act

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isce

llane

ous

prog

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s

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isce

llane

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Expe

nses

suc

h as

-

Enga

gem

ent

of

Phot

ogra

pher

on

con

trac

t, En

try

Fee

for

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PE

Mer

itorio

us A

war

d, e

xpen

ses

on

mis

cella

neou

s ac

tiviti

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tc.

4,23

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Dire

ct

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2,74

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2,74

,285

Gran

d To

tal

2,29

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215

16,9

1,96

5

51

MECON

MECON Limited

ANNEXURE–I

TECHNOLOGY ABSORPTIONEffortsmade and benefits derived like product improvement, cost reduction, product development or importsubstitution

Indigenously developed Technology

Sl. No.

Efforts made towards technology absorption

Benefits derived like product improvement, cost reduction, product development

1 Development of Torpedo Ladle Carmonitoring system using InfraredImaging.

Thetechnologyaimsatprovidingthefollowingbenefits.

1. Increasingsafetyandaveragelifeoftorpedoladle.

2. Preventionoftorpedoladlebreakoutbyearlydetectionofaffected areas.

3. Reductionofproductioncostby increasing service lifeoftorpedorefractory.

4. Advanceddatamanagementandanalysiswiththehelpofdatabaseoftorpedoladle.

2 Development of hydraulic tiltingrunner for hot metal evacuationin retro-fitting mini blast furnaceupgradation

In most of the existing smaller blast furnaces the hot metal isdirectlypouredintoopentopladlesthroughspoutsandtheladlesaremaneuveredusingcranes.This isamajorbottleneckinday-to-daycasthouseoperationandmaintenance.YourCompanyhasdesigned in-house indigenous tilting runner which is operatedhydraulically as inmodern large blast furnaces. For retrofittingthiskindoftiltingrunnerinsmallerandolderblastfurnaces,yourCompanyhasalsoincorporatedTransfercarforladlepositioningandmaneuvering. For blast furnaces that are already equippedwith motorized tilting runner, the incorporation of hydrauliccylinderbasedtiltingrunnerofferssignificantadvantagesintermsofoperation,maintenanceandreliability.Thesystemisalreadyinoperationsuccessfullyatoneinstallation.

Your Company with its in-house research and design is fullyprepared toprovide the industrywith innovative solutions suchas hydraulic tilting runner alongwith transfer car arrangementin existing Blast Furnace installations to improve the overallefficiency.

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ANNEXURE-II

1.0 INTRODUCTION

ThegrowthsagaofMECONcontinueswithorderbookcrossing₹3000Croremark for the lastfinancialyear.ThishasbeenmadepossiblebyleveragingtheexistingcapabilitiestoexplorenewareaslikestrategicminingareasandharnessingfullpotentialofOil&GasandInfrastructureprojectsapartfromconsolidatingthepositionintraditionalmetalsectorwhereinyourcompanyisbringingcuttingedgetechnologyforvariousclientsthroughstrategicpartnershipswithglobaltechnologysuppliers.

Your company ismaking serious endeavors to expand its global outreach through extensive participation ininternationalsummits&businessmeetsandbringinginternationalexposure&experiencefortheyoungworkforce.This would help revamp the working practices in the company in synchronisation with global benchmarks.Nevertheless,consistenteffortsforcreatingsatisfiedclientsandbreakingnewgroundsholdsthekeytosustainthegrowthmomentumandtogetherwestandcommittedforanothersuccessfulyearahead.

2.0 SWOT Analysis

STRENGTHSi. Multi-disciplinaryexperiencedandcapablepoolofengineers/technologistsinvariousspecializedtechnical

disciplines.ii. Vast knowledge repository and reference materials, being a legacy design, engineering & consultancy

organization.iii. CorecompetencyinprovidingendtoendsolutionsintheareaofMetals&Miningwithestablishedmarket

recognition.iv. Capabilityinequipment&systemdesignandsupply&executioninFerrousarea.v. ProminentpresenceingaspipelinesprojectofGAIL(LongDistancePipeLine&CityGasDistributionetc.)vi. Experience in DEC and PMC services for Government Housing Boards, State & Central Institutional

Buildings,StateTranscosforsettingupsub-stationetc.vii. In-houseEnvironmentalEngineeringLaboratory.NABET/QCIAccreditationfor16sectors.viii. LowaverageageofemployeeduetoInductionofyoungprofessionals.ix. Goodcredentialswithfinancialinstitutionsandregulatoryauthorities.x. Widenetworkofofficesatvariouslocationsacrossthecountry.WEAKNESSESi. High incidence of employee benefit expense as compared to some of the competitors, especially in the

privatesector.ii. Depletion of critical knowledge / skills in certain areas on account of superannuation / separation of

experienced manpower.iii. Skewedorganizationstructure(Stillundertransition).iv. Technologicalobsolescence / gap especially in the areasof steelmaking, continuous castingand rolling

mills.v. ChallengesincredentialsformeetingPQcriteriaeg.endtoendEPCinthefieldofthermalandrenewable

energy,refining&petrochemicalsetc.vi. SystemicconstraintsinvendordevelopmentforstrengtheningexecutionofEPCjobs.vii. Inadequateexperiencedmanpowerforexecutionactivitiesatprojectsites.viii. Consolidationofstrengthindiversifiedsectorsmaytakesomemoretime.ix. Verylimitedpresenceintheoverseasmarket.x. Publicsectorlimitationinoperationalflexibility.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

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MECON Limited

OPPORTUNITYi. Anticipatedfutureinvestmentsinmining,beneficiation,agglomeration/pelletisation,slurrytransportation

andcoalwasheries.ii. PossiblefutureinvestmentinSteelsectorinviewoftheNationalMissionof300MTCrudeSteelCapacity

by2030-31.iii. Large scale investments inotherdiversified sectors viz. oil&gas, infrastructure& strategic sectors and

powertransmission&distribution&renewableenergysector.iv. Leveragingpastexperienceindefencesectortoharnessnewopportunitiesemanatingwiththeopeningof

DefenceProductionsectorforparticipationofprivatesector(FDIhikedto49%).v. Expansioninports,powerandminingsectorareexpectedtoofferassociatedMaterialHandlingProjects

andtheCompanyexpectstogeneratebusinessfromthissector,bothonitsowncredentialsandalsothroughjointparticipationwithotherCompanies.

vi. Opportunities fromGovt.FlagshipschemessuchasPradhanMantriAwasYojana(PMAY),DeenDayalUpadhayaGramJyotiYojna(DDUJGY),BharatMala,SagarMala,UrjaGanga,SwachhBharatetc.

THREAT i. Mushroomingofconsultancycompaniesoperatingatlowmargins.ii. Presence of Indian set-up of all major MNCs like SMS, Siemens, Danielli, Kobe Steel, etc providing

comprehensiveservicesincludingengineering.Privatesector,inparticular,optingforengineeredpackagesfromtheturnkeysuppliers,withoutengagementofexternalconsultants.

iii. Stringenttechnicalpre-qualificationcriteriaforconsultancyaswellassupplyjobs.iv. RecentdeclineininvestmentinthecoreareaofMetalsinthepastbutcontinueddependenceonMetals

sector.v. Unevenplayinggroundforpublic&privatesectors.vi. Today’sconsortiumpartnersemergeasfutureCompetitors.vii. Risk/uncertaintyinforeignstrategictie-ups.viii. Longapprovalprocessalongwithdelaysininfrastructuresectormayimpacttheoverallopportunityinthe

sector. ix. Delaysinstatutoryclearances,landacquisitionandR&Rissues.3.0 BUSINESS OUTLOOK

Global Economic Scenario

AsperWorldEconomyOutlookrecentreport,globalactivityslowednotablyinthesecondhalfoflastyear,reflectingaconfluenceoffactorsaffectingmajoreconomies.China’sgrowthdeclinedduetoincreasedtradetensionswithUnitedStates& regulatory tightening in shadowbanking.Theeuroareaeconomy lostmoremomentumthanexpectedasconsumerandbusinessconfidenceweakenedandcarproductioninGermanywasdisruptedbytheintroductionofnewemissionstandards,investmentdroppedinItalyassovereignspreadswidened,andexternaldemand,especiallyfromemergingAsia,softened.Asaresultofthesedevelopments,globalgrowthisnowprojectedtoslowfrom3.6%in2018to3.3%in2019.AsperInternationalMonetaryFund(IMF),gradualpickupinthesecondhalfof2019 ispredicatedonanongoingbuildupofpolicy stimulus inChina, recent improvements inglobalfinancialmarketsentiment,thewaningofsometemporarydragsongrowthintheeuroareaandagradualstabilizationofconditionsinstressedemergingmarketeconomies,includingArgentinaandTurkey.Beyond2020,globalgrowthissettoplateauatabout3.6percentoverthemediumterm,sustainedbytheincreaseintherelativesizeofeconomies,suchasthoseofChinaandIndia,whichareprojectedtohaverobustgrowthbycomparisonto slower-growing advanced and emerging market economies (even though Chinese growth will eventuallymoderate).

Indian Economic Scenario

Despitesoftergrowthintheworldeconomy, theIndianeconomyremainsoneofthefastestgrowingandpossiblytheleastaffectedbyglobalturmoil.AsperthelatestprojectionsofCentralStatisticsOffice(CSO),India’sGDPisestimatedtohaveincreased7.2%in2017-18and7.0%in2018-19.Netdirecttaxcollectionfor2018-19hadcrossedRs10trillion(US$144.57billion)byMarch16,2019,whilegoodsandservicestax(GST)collectionstood

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atRs10.70trillion(US$154.69billion)asofFebruary2019.DuetolaunchofcampaignsuchasMakeinIndia(MII)numerousforeigncompaniesaresettinguptheirfacilitiesinIndiaanditisexpectedthatthiscampaignwillboostthemanufacturingsectorofIndianeconomyandwillalsoenhancepurchasingpowerofanaverageIndianconsumer.TheGovernmentofIndia,asperNationalManufacturingPolicyundertheMakeinIndiainitiative,istryingtogiveboosttothecontributionmadebythemanufacturingsectorandaimstotakeitupto25%oftheGDPby2022-23fromthecurrent17%.Besides,theGovernmenthasalsocomeupwithDigitalIndiainitiative,toincreasethedigitalliteracy,NationalSteelPolicytoreach300MTby2030-31andotherpoliciessuchasHousingForAll,PowerForAll,UrjaGanga,AyushmanBharatetc.inordertofurtherstrengthentheIndianeconomy.

� Steel Industry

TheSteelSectorcontributesover2%totheGDPofthenationandemploysmorethan0.5millionpeopledirectlyand3millionindirectly.AspertheWorldSteelAssociation,Indiaisthefastest-growingmarketforsteelamongthetop10largeststeelmarketsbyvolume.ThesteeldemandinIndiaisexpectedtoremainrobustwithgrowthrangingfrom7to8%p.a.Thetotalcrudesteelproductioninthecountryhasreached106.50MTin2018-19,surpassingJapantobecomeworldsecondlargestproducer.Moreoverthesteelproductioncapacityhasincreasedto138MTin2018-19which is expected to reach300MTby2030-31asperNationalSteelPolicy2017.Considering thecomparativelylowpercapitasteelconsumptionof71Kgandexpectedgrowthinconsumptionduetogrowthininfrastructure,constructionandmanufacturing,yourCompanyisreadytoharnesstheopportunity.

Your Company believes that the growth of the steel industry will be driven by infrastructure, construction,engineering& fabrication, oil and gas and automotive.Moreover easy availability ofmanpower and presenceofrichendowmentofironorereservesmakesIndiacompetitiveinglobalset-up.EventhepolicysupportfromtheGovernmentintheformofimpositionofsafeguarddutyoranti-dumpingdutyonimportofsteelandexportdutyonironoreensuresthatthedomesticindustrycapitalizeonthefuturegrowthopportunity,mainlydrawnbydomesticdemand,DomesticallyManufacturedIron&SteelProducts(DMI&SP)Policy,qualitycontrolordersetc.

Thecountry’ssteelproductioncapacityisgrowingataCAGRof8.71%overaperiodof10yearsandisexpectedtoachieve300MTofproductioncapacityby2030-31.SuchexpansionofproductioncapacitywilltranslateintoadditionalinvestmentofalmostRs10LakhCroreby2030-31poisinggreatopportunityforyourCompanytogetasignificantshareoftheadditionalinvestment.India’sshareinglobalsteelproductionisexpectedtobe7.7%by2021ascomparedto5.9%in2018.WhereasthedomesticfinishedsteelconsumptionisgrowingataCAGRof5.70%duringthelast10years.Finishedsteelconsumptionduringtheyearunderreviewstoodat97.5MT.

Goneare thedayswhen thegapbetween India’s exportand importoffinished steelwasveryhuge. IncreasedsupplyofsteelensuresIndiawillcontinuetobeamajorglobalexporteraswell.NowIndia’sexportduringApril,2018toFebruary,2019(P)stoodat5.77MTandimportstoodat7.13MT.Thelongtermprospectforthesteelindustry in India remainsoptimistic inwakeofdomesticdemandpotential,duly supportedbyvariouspolicyinitiatives ofGovernment of India, theNational Steel Policy (NSP-2017),DMI&SP,Make in India etc.Yourcompanyhas strived to reinforce its technological capability in the entire value chainof iron& steel industrythroughthetechnologicaltie-upsandharnesstheopportunitiesemergingfromthegovernmentpolicies.

� Power Generation:

SourcesofpowergenerationinIndiarangefromconventionalsourcessuchascoal,lignite,naturalgas,oil,hydroandnuclearpowertoviablenon-conventionalsourcessuchaswind,solarandagriculturalanddomesticwaste.TheGovernmentof India’s focusonattaining ‘PowerForAll’hasacceleratedcapacityaddition in thecountrywiththrustonrenewablesourceofenergyandstrengtheningTransmission&Distribution(T&D)infrastructure.Totalinstalledcapacityofpowerstations(Thermal,Nuclear,Hydro&RenewableEnergySources)inIndiaason30.04.2019stoodat356Gigawatts(Source:CEA-CentralElectricityAuthority).

The thermalpowergeneration industryhasbeen retrofittingThermalPowerPlant (TPP)unitswithpollutioncontrolmeasuresinordertocomplywiththestringentemissionlimitsnotifiedbytheMinistryofEnvironment,ForestandClimateChange(MoEFCC)inDecember2015.Inordertomeetthestandards,newemissioncontrolsystems,includingFlueGasDesulphurization(FGD)andElectrostaticPrecipitators(ESPs),neededtobeinstalledatpowerplants.AccordinglyyourCompanyisprovidingitsconsultancyservicesforDe-Sox&De-NOxemissions.YourCompanyhasalsoforgedstrategictie-upwithtechnologypartnerintheareaofFGDtechnology.Also,yourCompanyisfocusingonRetrofitting,Renovation&Modernization(R&M)ofageingthermal&hydelplants.

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MECON Limited

� Oil & Gas:

TheGovernmentofIndiaaimstoincreasetheshareofgreenenergyintotalenergymixto15%.GovernmentofIndiahasadoptedseveralpoliciestofulfilltheincreasingdomesticdemandforoilandgasandmakingthesectorconduciveforinvestment.Thegovernmenthasallowed100percentForeignDirectInvestment(FDI)inmanysegmentsof the sector, includingnaturalgas,petroleumproducts, andrefineries.UnderGovernmentof IndiaschemessuchasUrjaGanga,yourCompanyhasrendereditsservicesinthevariousprojectssuchasAurariya-PhulpurNaturalGasPipeline(NGPL),Kochi-Kottanad-Bengaluru-MangaloreNGPL,Jagdispur-Haldia-Bokaro-DhamraNGPL.Thecumulativelengthofpipelineofthesethreeprojectsismorethan2600KM.AlsoyourCompanyhasoffereditsDesignEngineering&Consultancy(DEC)&ProjectManagementConsultancy(PMC)rangeofservicesinGroupGatheringStation,CityGasDistribution&PetroleumOils&Lubricant(POL)terminals.YourCompanyisalsofocusingtoenrichitsservicesandmoveupthevaluechaintocatertothemid-stream&up-streamsegmentsofoil&gas.

� Infrastructure:

InvestmentworthRs50trillionininfrastructureisplannedby2022.InfrastructuresectorisakeydriverfortheIndianeconomy.ThissectorisoneofthelargestreceiversofFDIinflowsinIndia.Initiativeslike“HousingForAll”&“SmartCitiesMission”willdirectthegrowthofthesector.100percentFDIispermittedthroughtheautomaticrouteinthesector.

¾ Power Transmission & Distribution: Government of India have launched various schemes forstrengthening the Power T&D infrastructure of the country such as Integrated Power DevelopmentScheme (IPDS),DeendayalUpadhyayaGram JyotiYojana (DDUGJY) etc.YourCompany is offeringconsultancy services to JharkhandBijliVitranNigamLimited (JBVNL),OdishaPowerTransmissionCorporationLimited(OPTCL)etc.

¾ Telecom: Indiaiscurrentlytheworld’ssecond-largesttelecommunicationsmarketwithasubscriberbaseof1.20billionasonFeb,2019.FDIcapinthetelecomsectorhasbeenincreasedto100percentfrom74percent;outof100percent,49percentautomaticrouteandtherestwillbedonethroughtheForeignInvestmentPromotionBoard(FIPB)approvalroute.TheGovernmentofIndiahasintroducedDigitalIndiaprogrammeunderwhichallthesectorssuchashealthcare,retail,etc.willbeconnectedthroughinternet.UnderthisprogramBHARATNETserviceshasbeenlaunchedinordertoprovideopticalfibrenetworktoprovidebroadbandconnectivitytoallgrampanchayatsofthecountry.YourCompanyisalsorenderingservicesinthisfield.

¾ Water:GovernmentofIndiahavelaunchedtheAtalMissionforRejuvenationandUrbanTransformation(AMRUT)withtheaimofprovidingbasiccivicamenitieslikewatersupply,sewerage,urbantransport,parksastoimprovethequalityoflifeforall.EnvironmentalauthoritiesinIndiahavedirectedindustriestointroduceZeroLiquidDischarge(ZLD)systemintheirprocessplants.YourCompanyisprovidingconsultancy&projectmanagementservicesinthefieldofZLD,WaterDesalinationplant&SewerageTreatment plant.

¾ Ports:Indiahasalongcoastlineofabout7,517Kmwithmorethan200portsincluding13majorports,providingampleopportunityinthissector.GovernmentofIndiahasallowedFDIofupto100percentundertheautomaticrouteforportandharborconstructionandmaintenanceprojects.GovernmentofIndiahasembarkedontheambitiousSagarmalaProgrammewhichaimstopromoteport-leddevelopmentinthecountry.YourCompanymayplaykeyroleinmanyprojectsenvisagedunderSagarmalaprogram.Also,yourCompanyistargetingprojectsintheportrelatedmaterialhandlingfacilities.

¾ Healthcare:Governmentof India launchedPradhanMantri JanArogyaYojana (PMJAY),AyushmanBharat.Underthisscheme,yourCompanyisworkingintheprojectofAllIndiaInstituteofHomeopathyatNarela(Delhi)underMinistryofAyush.

¾ Environment:UndertheguidelinesofMoEFCC,yourCompanyhasbeenundertakingEnvironmentalImpactAssessment(EIA),EnvironmentManagementPlan(EMP)&Socio-EconomicImpactAssessment(SEIA)studiesforminingindustries,infrastructureprojects&power.

¾ Strategic Sectors: Governmentpoliciescontinuetofocusonstrategicsectorssuchasdefense,space&atomicmineralswithsubstantialenhancementinthebudget.YourCompanyisalreadyprovidingDEC&

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PMCservicesinthesestrategicsectorsforprojectsofIndianArmy,Ordnancedepots,Navy,ISRO,UCILetc.

BUSINESS PROCUREMENT

Total₹inCrore

Sl. No. SBU

2017-18 2018-19Consultancy EPC Consultancy EPC

1. Metal 203.99 2.41 183.41 2832.122. Energy 206.71 Nil 72.11 Nil3. Infrastructure 122.57 467.76 104.11 NilTotal(₹) 533.27 470.17 359.63 2832.12Grand Total (₹) 1,003.44 3,191.75

4.0. INTERNAL CONTROL SYSTEMS AND ADEQUACY THEREOF

YourCompanynotonlyhasaproperandadequatesystemofinternalcontrolandproperdocumentedprocedureencompassingallfinancialandoperatingfunctionsbutalsoahistoryandtraditionbequeathedsinceinception.

Thesehavebeenplanned toprovide reasonable accuracy formaintenanceofproper accounting and adequatecontroltomonitorandtogovernthecompany’sfund,tooptimizeinternalresourcesforincreasingoperationalefficiency,tosecureassetsfromunauthorizeduseandtoascertainrelianceonfinancialandallotheroperationalinformation.

Thecompanyhasundertakenunifieduntiringteamefforttoachievethebestpossiblestate-of-theartsystem.

Salientfacetsoftheinternalcontrolsystemare:

¾ Anin-houseinternalauditteamisresponsibleforreviewingtheestablishedinternalcontrolsystemsatplacewithintheorganization.Tomaintainitsobjectivityandindependence,theInternalAuditSectionreportsdirectlytotheChairmanandManagingDirector.

¾ Thecompanyhasanextensiveprogrammeofcarryingout internalaudits,managementandfinancialreviewstoensuregreaterefficiency,transparencyandaccountability.

¾ Quarterly Internal Audit reports comprising of significant audit observations and follow-up actionsthereonareplacedbeforetheAuditCommitteefortheirconsiderationandreview.

¾ Welldefineddelegationofpowerwithsanctioninglimitsforpurchasingofcapitalitemsandapprovingofrevenueexpenditure.

¾ Wellplannedbudgetforcapital&revenueexpenditureandcontinuousmonitoring.

¾ WelldefinedPurchaseandDisposalProceduretocarryoutfunctionofpurchaseencompassingvariousGovernmentandCVCguidelinesforin-houseprocurementaswellasprocurementofservicesandgoodsforexecutingEPCjobsandconsultancyjobs.

¾ Well framed EstablishmentManual and Service Rules to codify rules and policies governing serviceconditionsofemployees.

¾ WellcodifiedApexQualityManualforensuringqualityofservicesprovidedandgoodssoldforexecutingEPC jobs.

¾ Periodicalmeetingat all functional levels andalsoat corporate level for reviewingandachieving thetargeted results.

¾ With implementation of online information system starting from raising of invoices to collection ofmoney, theentire systemhasbeenmademoreeffective in termsof furnishing factual information inshortestpossibletime.

¾ WelldefinedplantoinvestsurplusfundmostjudiciallyandreportingthereoftotheApexmanagementregularly.

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5.0 DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the Financial Year 2018-19, your company achieved Turnover of ₹47,017.24 lakh. Turnover fromConsultancyJobsis₹37,612.12lakh,mainlyfromexecutionofconsultancyorderforGAIL,NMDC,differentSteelPlantsofSAIL,etc.TurnoverfromConsultancyJobsconstituted80.00%ofthetotalturnoverandturnoverfromTurnkeyProjectsconstituted20.00%oftotalturnover.Totalturnoverhasincreasedby5.48%overthepreviousyear.Duringtheyear2018-19thecompanyhasmadeProfitAfterTaxof₹1,374.01lakhcomparedtoProfitAfterTaxof₹5,802.33lakhofthepreviousyear.DuringtheFinancialYear2018-19,thecompanyhasearnedinterestof₹3,770.76lakhthroughtermdepositswithscheduledbanks.TheNetWorthofthecompanyhasincreasedby₹13,621.25lakhcomparedtopreviousyear.Thehighlightsoffinancialperformanceofthecompanyforthefinancialyear2018-19w.r.t.2017-18arementionedbelow.

(₹inlakh)

Sl. No. Particulars FY

2018-19FY

2017-18 #a) Turnover 47,017.24 44,572.62b) RevenueFromOperations 47,920.36 48,037.08c) TotalIncome 53,040.05 58,962.03d) PurchaseofEquipments&DirectExpenses 9,070.36 13,768.34e) EmployeeBenefitExpenses 28,822.45 31,387.78f) OtherExpenses 11,249.08 8,381.11g) Profit/(Loss)BeforeTax 997.44 4,401.83h) Profit/(Loss)AfterTax 1,374.01 5,802.33i) TotalComprehensiveIncome 1,214.64 5,936.21j) PropertyPlant&Equipments(Gross) 16,076.24 15,899.08k) IntangibleAssets(Gross) 1,509.81 1,459.00l) Financial Assets (Current and Non Current)

Investment 11.92 11.92TradeReceivables 44,586.11 38,597.89Loans 986.90 985.99CashandBankBalance 54,142.29 58,282.60OtherFinancialAssets(ExcludingBankBalance) 53,738.29 40,932.06

m) OtherAssets(CurrentandNonCurrent) 10,317.79 8,511.92n) Financial Liabilities (Current and Non Current)

Trade Payables 18,655.13 20,030.10Other Financial Liabilities (Current and NonCurrent)

28,393.69 15,806.57

o) OtherLiabilities(CurrentandNonCurrent) 13,618.74 17,685.46p) NetWorth 36,448.18 22,826.93q) ShareCapital 4,013.84 4,013.84r) Capital Employed 25,696.12 12,940.91

#TheCompanyhasadoptedIndAS115from1stApril,2018andaccordingly,financialsfor2017-18arerestated.

6.0 HUMAN RESOURCE DEVELOPMENT

Themanagementlaysemphasistofocusandsustainacompetentandhighlyresponsiveworkforcewithadequatedomainexpertise.Projectsbeingthecentreofourdeliverymechanism,workshopsandtrainingswerearrangedonSelectionofTechnology&ProductMix,MethodologyofContractClosureandContemporarytrendsinProjectManagement.Tobringaboutanoveralldevelopmentofourfutureleaders,toenablethemtounleashpotentialfor

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necessarybusinessimpactalongwithtechnicalcapabilitiesaugmentation,managementorganizedtraininginSoftSkills,PersonalityandSeniorLeadershipDevelopmentprogram.

WithregardstoTalentManagementandCareerProgression,employeeswerealsodeputedtovariousCentreofExcellencesunderMDPprograms,technicalprogramsandDPE’sResearchdevelopmentandConsultancyschemesuchasLeadershipandEnablersofachievingbusinessexcellence,PublicProcurementthroughE-ProcurementandGeMportal,IPMAlevelDcertificationCourse,ManagingForeignCurrenciesRiskandUnderstandingGlobalFinance,HRAnalytics,Mergers,AcquisitionsandRestructuring,TrainingonSteelMaking&SecondaryRefining,TrainingonWeldingTechnologyandEquipment,CityGasDistributioninIndia.Managementalwaysstrivestofocustowardsdevelopmentofitsemployeeswiththeobjectivethattheywillleadthecompanythroughchallengingenvironmentandensuresustainedvaluecreation.

7.0 TECHNOLOGICAL UP-GRADATION

Throughits6(six)decadesofexperienceinthedevelopmentandexpansionofIntegratedSteelPlantsaswellasotherbusinessverticals,MECONhasbeenabletobuildastrongtechnologicalbaseandhasacquired,absorbed&innovatedstate-of-the-arttechnologiestosuitvariousrequirements.Technological&Engineeringexcellenceachievedthroughaboveprocessisup-gradedoncontinuousbasisduringexecutionofvariousprojectsinassociationwithindustryleaders.Licenseagreementsandgeneralcollaboration/cooperationagreementswithorganisationssharingcommonbusinessinterests isprovidinganimpetusforMECONtostrengthenitsbusinessverticalsbycarvingoutmarketshare.Suchinitiativesarecomplementingknowledgeacquisition/up-gradationinadditiontobuilding-updatabaseforfocussedbusinessareaswiththeaimtobridgetheidentifiedtechnologygaps.Measuresadoptedtoworktowardstechnologyself-relianceinclude:

� ExposuretoGlobalTechnologies&Benchmarks � Maximizationofindigenization � Exploringglobalpartnersfornew/potentialbusinessareas � Aligninginternalresourcestocatertonewareas � Engagementofdomainexpertstocomplementin-houseexpertise � In-houseResearch&Development � Needbasedtraining-bothIn-house&outsideandparticipationinseminars/technologyfairs � Useofmoderntoolsforanalysis,design,modeling&drafting � Costeffectiveoperationsachievedthroughhigherrelianceonstate-of-the-artsoftwaretools

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

AsperSection-135ofTheCompaniesAct,2013,AverageNetProfitofyourCompanyfor theprecedingthreefinancialyears(i.e.FYs2015-16,2016-17&2017-18)wasNegative.Thus,aspertheActtherewasnoallocation,as2%ofAverageNetProfitwasNIL.However,asperDPEGuidelines,2%ofAdjustedPBTforFY2017-18wasallocatedasCSRfund,i.e.₹87.96Lakh.

YourCompanyhas taken a forward step for theBasicDevelopmentneeds (CreationofBasic Infrastructure -PotableDrinkingwater&Sanitation)andHealthcareprojectsinAdoptedVillagesofRanchi&KhuntidistrictsofJharkhandandinVisakhapatnam,A.P.,whicharetheAspirationalDistricts(AsidentifiedbyNITIAayog).

Thevariousprojects/activitiesundertakenunderitsCSR&SustainabilityPolicyduringFY2018-19aregiveninAppendix-ItotheDirector’sReport.

KeepingpacewiththeGovt.ofIndia’sMissionofSwachhBharat,theCompanyhascarriedoutvariousactivities/programmesforhighlightingthebenefitsofSwachhata.Awarenessprogramme&Cleanlinessdriveunder“SwachhBharatAbhiyan”werecarried-outinAdoptedVillagesunderthefollowingheads:

� “SwachhtaHiSewa”Campaign

� “SwachhtaPakhwada”Campaign

TheManagementofyourCompanyalwayslaythrustupontimelycompletionoftheCSRprojects/activitiessothatitsbenefitispassedontotheenduser.MoreovertheManagementalsolaysemphasis,thatregularon-goingschemes such as Free Literacy programme in Community Education Centres, Free Stitching Training underWomenEmpowermentScheme,FreeHealthCampsthroughMobileAmbulanceVanetc.shallalsobecontinuedtokeepCSR&SustainabilityactivityoftheCompanyaliveevenwhenthereislessornoallocablebudgetavailable.

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ANNEXURE-III

1.0 COMPANY’S PHILOSOPHY

TheCompany’sCorporateGovernancepracticeisbasedontheprinciplesofintegrity,fairness,equity,transparency,accountabilityandcommitmenttovaluesthatgovernsrelationshipwithallitsstakeholdersandattainingmaximumlevelofenrichmentoftheenterprise.ThesaidpracticeofCorporateGovernancestemfromitsprofessionalism.YourCompanylaysemphasisontheproperconductofitsactivitiesandenhancethevalueofallthosewhoareassociatedwith theCompany viz. Shareholders,Customers,Vendors,Governmentof India,Ministry of Steel,DepartmentofPublicEnterprises,variousStateGovernments,otherGovernmentAgencies/Departmentsandthesociety at large.

2.0 BOARD OF DIRECTORS

YourCompanybeingaCentralPSU,appointment/nominationofallDirectorsisdonebythePresidentofIndiathrough theMinistry of Steel.TheChairman andManagingDirector andFunctionalDirectors are appointedbytheGovernmentofIndia,MinistryofSteelforaperiodoffiveyearsortilltheageofsuperannuationoruntilfurtherorderswhicheverisearlier.Part-timeIndependentDirectorsarenormallyappointedforatenureofthreeyears.ArticlesofAssociationoftheCompanystipulatethatthenumberofDirectorsshallnotbelessthanfiveandnotmorethanthirteen.ThecompositionoftheBoardisasperDPEGuidelinesonCorporateGovernance.

Composition of Board of Directors

Sl.No

Particulars of Directors Sanctioned Strength Actual positionas on 31.03.2019

i. FunctionalDirectorsincludingCMD(WTD) 5 5

ii. Part-timeGovernmentDirectors 2 2

iii. Part-timeIndependentDirectors 3 2*

Total 10 9

(*)InDecember,2018twomorePart-timeIndependentDirectorswereappointedbyGovernmentofIndiaontheBoardoftheCompanybutonlyonerespondedandgotinductedontheBoardoftheCompany.

2.1 Terms & Conditions of appointment of Board Member:

Theterms,conditionsandtenureofappointmentofallBoardMembersaredecidedbytheGovernmentofIndia,MinistryofSteel.

2.2 Remuneration / Compensation to Board of Directors :

TheChairmanandManagingDirectorandWhole-timeDirectorsarepaidmonthlyremunerationasfixedbytheGovernmentofIndia.TheCompanybearsalltheexpenditureofDirectorsforattendingthemeetings.Part-time

GovernmentDirectorsarenotpaidanyremuneration.ThePart-timeIndependentDirectorsarepaidsittingfeesof₹15,000/-forattendingeachBoardMeetingand₹10,000/-forattendingeachBoardlevelCommitteemeeting.ThedetailsofsittingfeespaidtothePart-timeIndependentDirectorduringF.Y2018-19areasfollows.

Name of Director (Shri)Sitting Fees (₹)

Total(₹)Board Meetings Committee Meetings

SisirKumarAppikatla 55,000/- 70,000/- 1,25,000/-

DeepakKrishan 15,000/- -- 15,000/-

2.3 Board Meetings:

TheBoardmeetsstatutorilyandalsoasmanytimesasmaybewarranted.TheBoardMeetingsareconvenedas

CORPORATE GOVERNANCE

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pertheCompaniesAct,2013bygivingappropriateadvancenoticeafterseekingapprovaloftheChairmanoftheBoard.DetailedagendanotesarecirculatedinadvanceaspertheCompaniesAct,2013totheBoardMembersfor facilitatingmeaningful, informed and focused decision at themeeting. In case of special and exceptionalcircumstancesadditionalagendaitem(s)is/arealsopermittedwiththeconsentofChairmanoftheBoard.TheCompanySecretaryactsastheSecretarytotheBoardandBoardlevelCommitteeMeetings.

2.4 Number of Board Meetings:

Duringtheyear2018-19,Five(5)Meetingswereheld,thedetailsofwhicharegivenbelow:

Sl.No. DateofMeeting BoardStrength NumberofDirectorsPresent1 19.07.2018 7 62 26.07.2018 8 73 25.10.2018 8 84 09.01.2019 8 75 19.03.2019 9 9

ParticularsoftheDirectorsincludingtheirattendanceattheBoardMeetingsfrom1stApril,2018to31stMarch,2019.

Name of Directors & Designation (Shri / Smt.)

Number of Meetings held Number of Meetings attended

I. Whole time Directors

AtulBhatt,CMD Five Five

P.K.Sarangi,Director(Technical) Five Five

GoutamChatterjee,Director(Commercial) Five Five

SalilKumar,Director(Projects) Five Five

R.H.Juneja,Director(Finance) (appointedw.e.f20.04.2018)

Five Five

II. Part-time Government DirectorsSaraswatiPrasad,IAS Five FourSunilBarthwal,IAS, (upto24.05.2018)

Nil Nil

T.Srinivas (From24.05.2018to16.07.2018)

Nil Nil

RasikaChaube (w.e.f.16.07.2018)

Four Three

III. Part-time Independent DirectorSisirKumarAppikatla Five FourDeepakKrishan(w.e.f23.01.2019) One One

3.0 BOARD COMMITTEES

3.1 Audit Committee

ThelatestreconstitutedAuditCommitteeinplaceconsistsoftwoPart-timeIndependentDirectorandonewhole-timeDirector.TheroleandpowersoftheAuditCommitteeisasperSection177oftheCompaniesAct,2013aswellastheGuidelinesonCorporateGovernanceissuedbytheDepartmentofPublicEnterprises.TheChairmanoftheAuditCommitteeisParttimeIndependentDirector.ThepresentAuditCommitteeinplacecomprisesofthefollowingDirectors.

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MECON Limited

Sl. No Name of Directors (Shri) Status in Committee

1 SisirKumarAppikatla,IndependentDirector. Chairman2 DeepakKrishan,IndependentDirector Member3 R.H.Juneja,Director(Finance) Member

RaviBambha,CompanySecretary Secretary

Number of Audit Committee Meetings

Duringtheyearunderreview,Five(5)Meetingswereheld,thedetailsofwhicharegivenbelow:

Sl.No DateofMeeting Member’sStrength No.ofMembersPresent

1 26.07.2018 Three Three

2 25.10.2018 Three Three

3 12.11.2018 Three Three

4 09.01.2019 Three Three

5 19.03.2019 Three Three

ParticularsoftheDirectorsincludingtheirattendanceattheAuditCommitteeMeetingsfrom1stApril,2018to31stMarch,2019

Name of Directors Period Number of Meetings held

Number of Meetings attended

ShriSisirKumarAppikatla,IndependentDirector&Chairman.

01.04.2018to31.03.2019

Five Five

ShriGoutamChatterjee, Director(Commercial)&Member.

01.04.2018to31.03.2019

Five Five

ShriR.H.Juneja, Director(Finance)&Member (w.e.f.19.07.2018)

19.07.2018to31.03.2019

Five Five

3.2 Nomination and Remuneration Committee

WiththeappointmentofShriDeepakKrishanasPart-timeIndependentDirectorontheBoardofMECONandconsideringtheearlierappointmentofShriSisirKumarAppikatlaasPart-timeIndependentDirector,theBoardhasapprovedconstitutionofNominationandRemunerationCommitteecomprisingoffollowingmembers:-

Sl. No Name of Directors (Shri/ Smt.) Status in Committee

1 DeepakKrishan,IndependentDirector. Chairman

2 SisirKumarAppikatla,IndependentDirector Member

3 RasikaChaube,GovernmentDirector Member

4 AtulBhatt,ChairmanandManagingDirector Member

RaviBambha,CompanySecretary Secretary

3.3 Corporate Social Responsibility (CSR) and Sustainability Committee

IncomplianceoftheprovisionsofSection135oftheCompaniesAct,2013readwithGuidelinesonCorporateSocialResponsibility and Sustainability issuedby theDepartment of PublicEnterprises, aBoard levelCSR&SustainabilityCommitteewasconstituted.TheroleandfunctionsoftheCSR&SustainabilityCommitteeisasperCompanies(CorporateSocialResponsibilityPolicy)Rules2014.

ThepresentCSR&SustainabilityCommitteeinplacecomprisesofthefollowingDirectors.

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Sl. No. Name of Directors (Shri) Status in Committee

1 SisirKumarAppikatla,IndependentDirector Chairman

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

3 R.H.Juneja,Director(Finance) Member

RaviBambha,CompanySecretary Secretary

Number of CSR & Sustainability Committee Meetings:

Duringtheyearunderreview,Two(2)Meetingwereheld,thedetailsofwhicharegivenbelow:

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

1 26.07.2018 Three Three

2 19.03.2019 Three Three

ParticularsoftheDirectorsincludingtheirattendanceattheCSR&SustainabilityCommitteeMeeting.

Name of Directors Period Number of Meetings held.

Number of Meetings attended.

Shri.SunilBarthwal,IAS,GovernmentDirector&Chairman.

01.04.2018to24.05.2018

Nil Nil

Shri.T.Srinivas,GovernmentDirector&Chairman

25.06.2018to16.07.2018

Nil Nil

Shri.SisirKumarAppikatla, IndependentDirector&Chairman,w.e.f.19.07.2018

01.04.2018to31.03.2019

Two Two

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

01.04.2018to31.03.2019

Two Two

Shri.R.H.Juneja, Director(Finance)&Member

19.07.2018to31.03.2019

Two Two

3.4 Part time Independent Directors Meeting

YourCompanyhadonlyoneIndependentDirectoronitsBoardandthusnomeetingofIndependentDirectorwascarriedout.Recently,theGovernmentappointedanotherIndependentDirector,raisingthestrengthtotwo.Now,yourCompanyshallexplorethepossibilityofholdingatleastonemeetingoftheIndependentDirectorsasspecifiedundersub-paragraph(1)ofparagraph(VII)ofScheduleIVtotheCompaniesAct,2013.

4.0 ANNUAL GENERAL MEETING

ThedetailsofthelastthreeAnnualGeneralMeetingofthecompanyareasfollows:-

Year Date Time Venue

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

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

2017-18 20thSept.,2018 2.30P.M OUDHConferenceHall,HotelAshok,Chanakyapuri,NewDelhi.

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MECON Limited

5.0 DISCLOSURES:

5.1 Declaration of independence by Independent Director

IncomplianceofSec134(3)(d)oftheCompaniesAct,2013theCompanyhasobtaineddeclarationofindependencefromtheIndependentDirectorfortheF.Y2018-19underSection149(6)oftheCompaniesAct,2013.

5.2 Related party transactions

Thereareno‘materiallysignificantrelatedpartytransactions’thatmayhaveapotentialconflictwiththeinterestofCompanyatlarge.ThedetailsofRelatedPartyDisclosureasperInd.AS-24isdisclosedunderNote 40.11 of the Financial Statement.

5.3 Disclosure of accounting treatment

AllapplicableIndianAccountingStandardsissuedbytheInstituteofCharteredAccountantsofIndiaarebeingfollowedinthepreparationoffinancialstatements.TheSignificantAccountingPolicyoftheCompanyisdisclosed under Note 2 of the Financial Statement.

5.4 Compliance Certificate

AcertificateoncomplianceofapplicablelawsisplacedbeforetheAuditCommitteeandBoardonquarterlybasis.

5.5 Code of Conduct

TheBoardofDirectorshaslaiddownCodeofBusinessConductandEthicsfortheBoardMembersandSeniorManagementoftheCompany.TheCodeisdisplayedonthewebsiteoftheCompany.AllBoardMembersandSeniorManagementofficialsofthecompanyhaveaffirmedtheircompliancewiththecode.

6.0 MEANS OF COMMUNICATION

AnnualReportcontainingChairman’sSpeech,Directors’Report,ManagementDiscussionandAnalysisReport,CorporateGovernanceReport,Auditor’sReport,AuditedAccountsandotherimportantinformationaremadeavailableonthewebsiteoftheCompany.

7.0 TRAINING OF BOARD MEMBERS

Directorsarebeingnominated,asandwhenrequiredforthetrainingprogrammeorganizedbyDPE,SCOPEetc.

8.0 WHISTLE BLOWER POLICY

TheCompanyhasWhistleBlowerPolicyinaccordancewiththerequirementofSection177(9)oftheCompaniesAct,2013andthesameisuploadedonthewebsiteoftheCompany.ItisalsoaffirmedthatnoemployeehasbeendeniedaccesstotheAuditCommittee.

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INDEPENDENT AUDITORS’ REPORTTo

The Members of MECON LIMITED

Report on the Audit of the Standalone Financial Statements.

Opinion

Wehaveauditedtheaccompanyingstandalonefinancialstatementsof MECON LIMITED (“the Company”) whichcomprisestheBalanceSheetasat31stMarch2019,theStatementofProfitandLoss(includingothercomprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsforyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredtoas“thestandalonefinancialstatements”).

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalone financial statements give the information required by theCompaniesAct, 2013 (“theAct”) in themanner so required andgive a true and fair view in conformitywith IndianAccountingStandardprescribedundersection133oftheActreadwiththeCompanies(IndianAccountingStandards)Rule,2015asamended,(“IndAS”)andotheraccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31st,2019,theprofit,totalcomprehensiveincome,changesinequityanditscashflowsfortheyearendedonthatdate.

Basis for Opinion

Weconductedour auditof the standalonefinancial statements in accordancewith theStandardsonAuditing(SAs)specifiedundersection143(10)oftheCompaniesAct,2013.OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’s Responsibilities for the Audit of the Standalone Financial Statementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsissuedbytheInstituteofCharteredAccountantsofIndia(ICAI)togetherwiththeethicalrequirementsthatarerelevanttoourauditofthestandalonefinancialstatementsundertheprovisionsoftheCompaniesAct,2013andtheRulesmadethereunder,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropiniononthestandalonefinancialstatements.

Emphasis of Matter

WedrawattentiontothefollowingmattersinthenotestotheStandaloneFinancialStatements:

a) NoteNo.40.28withrespect toappealfiledby theCompanywith theHon’bleHighCourtof JharkhandinthematterofArbitralawardpronouncedagainstthecompanyandtherelateddisclosureofcontingentliabilityasmentionedinthesaidnote.

b) NoteNo. 40.27with respect to appeal filed by the companywith theHon’ble PrincipalDistrictCourt,Cuddloreinthematterrelatedtorecoveryofadvanceagainstthebankguarantee.

c) NoteNo. 40.26with respect to non provision for pay revision of executive employees w.e.f 01.01.2017consideringtheDPEOMdated03.08.2017andthefinancialstatusoftheCompany.

d) NoteNo.40.15(g)withrespecttotheeffectofchangeinaccountingpolicyduetoadoptionofIndAS115,theretainedearninghasincreasedby₹13,485.57Lakhsandconsequentincreaseinassetsandliabilitiesby₹5,739.40Lakhs.Howeverthereisnomaterialeffectonthecurrentyear’sprofit.

Ouropinionisnotmodifiedinrespectofthesematters.

Key Audit Matters

KeyAuditmattersarethosemattersthatinourprofessionaljudgement,wereofmostsignificanceinourauditofthestandalonefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthestandalonefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wehavedeterminedthemattersdescribedbelowtobethekeyauditmatterstobe communicated in our reports.

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MECON Limited

Sl. No Key Audit Matters Audit Response on Key Audit Matter

1. Recognition and Measurement of revenue

TheCompanyhasadoptedIndAS115,RevenuefromContractswithCustomers(‘IndAS115’),thenewstandardonrevenuerecognition.

Theapplicationandtransitiontothisaccountingstandardiscomplexandisanauditfocusarea.

The revenue standard establishes acomprehensive framework for determiningwhether, howmuch andwhen revenue shouldbe recognized. This involves certain keyjudgments relating to identification of distinctperformance obligations, determination of thetransaction price, allocation of the transactionpricetoidentifiedperformanceobligations,andthe appropriateness of the revenue recognitionmethodology. Additionally, the standardmandates robust disclosures in respect ofrevenueandperiodsoverwhichtheremainingperformance obligations will be satisfiedsubsequenttothebalancesheetdate.

Refer:Notes 2 (8) to the Standalone FinancialStatement of Accounting Policy on RevenueRecognition.

Our audit procedures on adoption of Ind AS 115,RevenuefromcontractswithCustomers(‘IndAS115’),the new standard on revenue recognition, include thefollowing–

• Evaluated the design and implementation ofthe processes and internal controls relating toimplementation of the new revenue recognitionstandard.

• Evaluated the detailed analysis performedby management across revenue streams byselecting samples for the existing contractswithcustomers and verified the appropriateness ofidentificationofdistinctperformanceobligations,determinationofthetransactionprice,allocationofthetransactionpricetoidentifiedperformanceobligationsandtheappropriatenessoftherevenuerecognitionmethodology.

• Evaluatedtheappropriatenessoftheadjustmentsrecordedbymanagementas at1stApril, 2018 totransitiontothenewrevenuestandard,usingthemodifiedretrospectiveapproach.

• Evaluated the appropriateness of the accountingpolicy and disclosures provided under the newrevenue standard and assessed the completenessand mathematical accuracy of the relevantdisclosures.

Information Other than the Standalone Financial Statements and Auditor’s Report ThereonThe Company’s Board of Directors is responsible for the preparation of the other information. The otherinformation comprises the information included in theManagementDiscussionandAnalysis,Board’sReportincludingannexurestoBoardsReport,BusinessResponsibilityReport,CorporateGovernanceandShareholdersInformation,butdoesnotincludethestandalonefinancialstatementsandourauditor’sreportthereon.OuropinionontheStandaloneFinancialStatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.In connection with our audit of the Standalone Financial Statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with theStandaloneFinancialStatementsorourknowledgeobtainedduringthecourseofouraudit,orotherwiseappearsto be materially misstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.Responsibility of Management and those Charged with Governance for the Standalone Financial StatementsTheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformance,totalcomprehensiveincome,changesinequityandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheCompaniesAct2013(“theAct”)readwiththerelevantrulesissuedthereunder.ThisresponsibilityalsoincludesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimates

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that are reasonable and prudent; and design, implementation andmaintenance of adequate internal financialcontrols, thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthestandalonefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthestandalonefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThoseBoardofDirectorsarealsoresponsibleforoverseeingtheCompany’sfinancialreportingprocess.Auditor’s Responsibility for the Audit of the Standalone Financial StatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthestandalonefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandare consideredmaterial if, individuallyor in theaggregate, theycould reasonablybeexpected toinfluencetheeconomicdecisionsofuserstakenonthebasisofthesestandalonefinancialstatements.AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

� Identifyandassess the risksofmaterialmisstatementof the standalonefinancial statements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethat is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting amaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

� Obtainanunderstandingofinternalcontrolsrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressingouropiniononwhethertheCompanyhasadequateinternalfinancialcontrolsysteminplaceandtheoperatingeffectivenessofsuchcontrols.

� Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated disclosures made by management.

� Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityoftheCompanytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthestandalonefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However, futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

� Evaluatetheoverallpresentation,structureandcontentofthestandalonefinancialstatements,includingthedisclosures,andwhetherthestandalonefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or inaggregate,makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthestandalonefinancialstatementsmaybeinfluenced.Weconsiderquantitativematerialityandqualitativefactorsin(i)planningthescopeofourauditworkandinevaluatingtheresultsofourwork;and(ii)toevaluatetheeffectofanyidentifiedmisstatementsinthestandalonefinancialstatements.Wealsocommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovide those chargedwithgovernancewith a statement thatwehave compliedwith relevant ethicalrequirementsregarding independence,andtocommunicatewith themall relationshipsandothermatters thatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

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MECON Limited

Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthestandalonefinancialstatementsofthecurrentperiodandarethereforethekey auditmatters.Wedescribe thesematters inour auditor’s reportunless lawor regulationprecludespublicdisclosure about thematterorwhen, in extremely rare circumstances,wedetermine that amatter shouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central

GovernmentofIndiaintermsofsub-section(11)ofsection143oftheCompaniesAct,2013,wegiveintheAnnexure“A”astatementonthemattersspecifiedinparagraphs3and4of theOrder, totheextentapplicable.

2. Asrequiredbysection143(5)oftheAct,theComptrollerandAuditorGeneralofIndiaIssuedDirectionsandsub-directions.WegiveourcommentthereonvideAnnexure“B”.

3. AsrequiredbySection143(3)oftheAct,wereportthat:a. Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledge

andbeliefwerenecessaryforthepurposesofouraudit.b. Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofaras

itappearsfromourexaminationofthosebooks.c. TheBalanceSheet,theStatementofProfitandLossincludingothercomprehensiveincome,Statement

ofChangesinEquityandtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.

d. Inouropinion, the aforesaid standalonefinancial statements complywith the IndianAccountingStandardsspecifiedunderSection133oftheAct,readwithrelevantrulesissuedthereunder.

e. In terms ofGovt. of India,Department ofCompanies affairsNotificationNo.GSR 463(E) dated5thJune 2015, Govt. Company is exempt from applicability of provision of section 164(2) of theCompaniesAct2013.

f. WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparateReportinAnnexure“C”.

g. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014(asamended),inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialpositioninits

standalonefinancialstatements-ReferNote38.1tothestandalonefinancialstatements.ii. The Company has made provision, as required under the applicable law or accounting

standards,formaterialforeseeablelossesifany,onlong-termcontractsandtheCompanydidnothaveanyderivativecontracts.

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C

Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433

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

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section) (i) In respect of its fixed assets:

a) TheCompanyhasmaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationofitsfixedassetsexceptinrespectofsomecaseswhereinthefixedassetsregisterandrecordsareintheprocessofupdation.

b) ThefixedassetsoftheCompanyhavebeenphysicallyverifiedbythemanagement.Inouropinion,theperiodofverificationisreasonablehavingregardtothesizeoftheCompanyandthenatureofitsbusiness.

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

(ii) In respect of physical verification of Inventory:

a) Theinventorieshavebeenphysicallyverifiedbythemanagementduringtheyear.

b) Inouropinionandaccording to the informationandexplanationsgiven tous, theprocedure forphysicalverificationofinventoriesfollowedbythemanagementaregenerallyreasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.

c) Inouropinionandaccording to the informationandexplanationsgiven tous, theCompanyhasmaintainedproperrecordsofitsinventory.Nomaterialdiscrepancieshavebeennoticedonverificationbetweenthephysicalstocksandthebookrecords.

(iii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgrantedany loans, secured or unsecured, to Companies, Firms, Limited Liability Partnerships or other partiescoveredintheregistermaintainedunderSection189oftheCompaniesAct,2013andhenceclause(a)to(b)isnotapplicabletotheCompany.

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgivenanyloansandguaranteesandnotmadeanyinvestmentsinrespectofSection185&186oftheCompaniesAct2013.

(v) In our opinion and according to the information and explanations given to us, the Company has notacceptedanypublicdepositsduringtheyearhenceclause(v)isnotapplicabletotheCompany.AccordinglythedirectivesissuedbytheRBIandprovisionsofSections73to76oranyotherrelevantprovisionsoftheActandrulesframedthereunderarenotapplicable.

(vi) Accordingtotheinformationgiventous,theCentralGovernmenthasnotprescribedmaintenanceofcostrecordsundersection148(1)oftheAct.

(vii) Accordingtotheinformationandexplanationsgiventousinrespectofstatutoryandotherdues:

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

b) Accordingtotheinformationandexplanationsgiventous,therearenoundisputedstatutoryduesoutstandingforaperiodofmorethansixmonthsfromthedatetheybecamepayable,asperbooksofaccountsasat31stMarch,2019.

c) Accordingtotheinformationandexplanationsgiventous,therearedisputedstatutorydues,whichhavenotbeendepositedasat31stMarch2019,asgivenhereinbelow:

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MECON Limited

Name of the Statute Period to which relates Forum Amount

(₹ in Lakhs)

CentralSalesTaxAct&SalesTaxActsofvariousstates

1999-2000 STAT,AndhraPradesh. 4.412000-2001 STAT,AndhraPradesh 101.402001-2002 AndhraPradesh.HighCourt 450.881995-1996 CommissionerofCommercialTaxes,Ranchi 258.121999-2000 CommissionerofCommercialTaxes,Ranchi 24.512001-2002 CommissionerofCommercialTaxes,Ranchi 49.472002-2003 CommissionerofCommercialTaxes,Ranchi 106.622009-2010 JharkhandCommercialTaxTribunal 27.661993-1994,1994-1995&1996-1997

JCCT(Appeal),Dhanbad 0.67

2005-2006 CommissionerofCommercialTaxes,Ranchi 78.502008-2009 CommissionerofCommercialTaxes,Ranchi 20.61

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

*1994-1995 JharkhandSalesTaxTribunal 219.10*2003-2004 AdditionalCommissioner,Kolkata 16.472006-2007 JharkhandCommercialTaxTribunal(Appeal) 9.762007-2008 JharkhandCommercialTaxTribunal(Appeal) 26.162010-2011 CommissionerofCommercialTaxes,Ranchi 217.292011-2012 CommissionerofCommercialTaxes,Ranchi 535.812011-2012 CommissionerofCommercialTaxes,Ranchi 0.0162011-2012 Jt.Comm.(Appeals),Sundergarh,Rourkela 206.391997-1998 CommissionerofSalesTax,Cuttack 46.512013-2014 AppellateDy.Commissioner,Vijaywada 16.092013-2014 Jt.Commissioner(Appeal),Durg 0.312014-2015 AppellateAdditionalCommissioner,Raipur 14.77

CentralExciseAct,1944 2018-2019 CESTAT,Kolkata 200.00

ServiceTax 2018-2019 CommissionerAppeal,CGST&CentralExciseRanchi 30.65

Employees Provident FundandMisc.ProvisionsAct1952 2003-2004 EPF,AppellateTribunal,NewDelhi 229.70

IncomeTaxAct 2000-2001 IncomeTaxAppellateTribunal,Ranchi 178.17IncomeTaxAct 2002-2003 CIT(A),Ranchi 105.54IncomeTaxAct 2010-2011 CIT(A),Ranchi 79.42IncomeTaxAct 2011-2012 CIT(A),Ranchi 96.32IncomeTaxAct 2012-2013 IncomeTaxAppellateTribunal,Ranchi 116.35IncomeTaxAct 2013-2014 IncomeTaxAppellateTribunal,Ranchi 205.80

Outoftheaboveincometaxdisputeof₹781.60lakhsconsistingof₹497.89lakhshasalreadybeenadjustedagainstrefund.

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

It isalsoinformedthattheCompanyhasdeposited₹445.90Lakhstowardsthestatutorydisputedcases,outofwhich₹194.81Lakhspertaintothestatutorydisputedcases listedabove.TheBalance₹251.09Lakhsrelatesto

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disputedcaseswhichhavebeensetasidebytheauthorities.

viii) In our opinion and according to the information and explanations given to us, the Company has notdefaultedinrepaymentofduestofinancialinstitutions,banksordebentureholdersduringtheyear.

ix) According to the information and explanations given by the management and the audit proceduresperformed,thecompanyhasnotraisedmoneybywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)andtermloanduringtheyear.

x) Tothebestofourknowledgeandbeliefandaccordingtotheinformationandexplanationsgiventous,nomaterialfraudbytheCompanyoranyfraudontheCompanybyitsofficersandemployeeshasbeennoticedorreportedduringtheyear.

xi) AspernotificationGSR463(E)dated5thJune2015issuedbytheMinistryofCorporateAffairs,GovernmentofIndia,Section197oftheActisnotapplicabletotheGovernmentCompany.Accordinglyparagraph3(xi)oftheorderisnotapplicabletotheCompany.

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

xiii) Inouropinionandaccording to the informationandexplanationsgiven tous,all transactionswith theRelatedPartiesareincompliancewithSection177&188oftheActandthedetailshavebeendisclosedintheFinancialStatementsasrequiredbytheapplicableaccountingstandards.

xiv) Accordingtotheinformationandexplanationsgiventousandbasedupontheauditprocedureperformed,theCompanyhasnotmade anypreferential allotment or private placement of shares or fully or partlyconvertibledebenturesduringtheyearunderreview.Accordingly, theprovisionsofClause3(xiv)of theOrderarenotapplicabletotheCompany.

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

xvi) Inouropinion, theCompany isnot required tobe registeredunderSection45-IAof theReserveBankofIndiaAct,1934andaccordingly,theprovisionsofClause3(xvi)oftheOrderarenotapplicabletotheCompany.

ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C

Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433

71

MECON

MECON Limited

“Annexure B” to the Independent Auditors’ Report of even date on Standalone Financial Statements of MECON LIMITED for the year 2018-19.

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

Sn Question Reply1. WhethertheCompanyhassysteminplacetoprocess

alltheaccountingtransactionsthroughITsystem?

If yes, the implicationsof processingof accountingtransactionsoutsideITsystemontheintegrityoftheaccountsalongwiththefinancialimplications,ifanymay be stated.

Asper the informationandexplanationsgiven tous, theCompanyhasasysteminplace toprocessalltheaccountingtransactionsthroughITsystem.

The main area covered are financial accounting,payroll,sales,GST,jobprogressreport.

Basedon the auditprocedures carriedout andasper the informationandexplanationsgiven tous,no accounting transactions have been processed/carried outside the IT system. Accordingly, therearenoimplicationsontheintegrityoftheaccounts.

2. Whetherthereisanyrestructuringofanexistingloanor cases of waiver/write off of debts/loans/interest,etc. made by a lender to the Company due to theCompany’sinabilitytorepaytheloan?

Ifyes,thefinancialimpactmaybestated.

Basedon the auditprocedures carriedout andasper the informationandexplanationsgiven tous,there was no restructuring of existing loans orcases of waiver/write off of debts/ loans/interest,etc.madebythelendertotheCompanyduetotheCompany’sinabilitytorepaytheloan.

3. Whether funds received/receivable for specificschemes fromCentral/State agencieswere properlyaccountedfor/utilizedasperitstermsandconditions?

Listthecasesofdeviation.

Basedontheauditprocedurescarriedoutandasperthe informationandexplanationsgiven tous, thefundsreceived/receivableforspecificschemesfromCentral/Stateagencieswereproperlyaccountedfor/utilizedaspertherespectivetermsandconditions.

72

MECON

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

ReportonInternalFinancialControlsoverfinancialreportingunderclause(i)ofsub-section3ofsection143oftheCompaniesAct,2013(“theAct”)

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofMECONLIMITED(“theCompany”)asof31stMarch,2019inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagement is responsible for establishing andmaintaining internal financial controls basedon the internal control over financial reporting criteria established by theCompany considering the essentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting issuedby the InstituteofCharteredAccountantsof India (ICAI).These responsibilities include thedesign, implementationandmaintenanceofadequate internalfinancialcontrolsthatwereoperatingeffectivelyfor ensuring the orderly and efficient conduct of its business, including adherence toCompany’s policies, thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting (the “GuidanceNote”) and theStandardsonAuditing, issuedby ICAIandprescribedunder section143(10)of theCompaniesAct, 2013, to the extent applicable to an auditof internalfinancialcontrols,bothapplicabletoanauditofInternalFinancialControlsand,bothissuedbytheInstituteofCharteredAccountantsof India.Those standards and theGuidanceNote require thatwe complywith ethicalrequirementsandplanandperformtheaudit toobtainreasonableassuranceaboutwhetheradequate internalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyin all material respects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthestandalonefinancialstatements,whetherduetofraudor error.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolsystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationofstandalonefinancialstatementforexternalpurposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internalfinancialcontroloverfinancial reporting includes thosepolicies andprocedures that (1)pertain to themaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationofstandalonefinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthestandalonefinancialstatements.

73

MECON

MECON Limited

Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

Inouropinion, theCompanyhas, inallmaterial respects, anadequate internalfinancial controls systemoverfinancialreportingandsuch internalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31stMarch, 2019, based on the internal controls over financial reporting criteria established by theCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialcontrolsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.

ForV.Rohatgi&Co CharteredAccountants FirmRegistrationNo:000980C

Sd/- (PraveerRanjan) Place:Ranchi Partner Dated:11thSeptember,2019 M.NO:076295 UDIN:19076295AAAAAB1433

74

MECON

COMPTROLLER AND AUDITOR GENERAL OF INDIA’s COMMENTS

ThepreparationoffinancialstatementsofMECONLimitedfortheyearended31March2019inaccordancewiththefinancialreportingframeworkprescribedundertheCompaniesAct,2013(Act) is theresponsibilityof themanagementofthecompany.ThestatutoryauditorsappointedbytheComptrollerandAuditorGeneralofIndiaunderSection139(5)oftheActareresponsibleforexpressingopiniononthefinancialstatementsunderSection143oftheActbasedonindependentauditinaccordancewiththestandardsonauditingprescribedunderSection143(10)oftheAct.ThisisstatedtohavebeendonebythemvidetheirAuditReportdated11September2019.

I, on behalf of the Comptroller andAuditor General of India, have conducted a supplementary audit of thefinancialstatementsofMECONLimitedfortheyearended31March2019underSection143(6)(a)oftheAct.Thissupplementaryaudithasbeencarriedoutindependentlywithoutaccesstotheworkingpapersofthestatutoryauditors and is limitedprimarily to inquiriesof the statutoryauditors andcompanypersonnel anda selectiveexaminationofsomeoftheaccountingrecords.

Onthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgiverisetoanycommentuponorsupplementtostatutoryauditors’reportunderSection143(6)(b)oftheAct.

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

Place : Ranchi

Date : 28th September, 2019

(Indu Agrawal) Principal Director of Commercial Audit

& Ex-officio Member, Audit Board, Ranchi.

75

MECON

MECON Limited

BALANCE SHEET AS AT 31ST MARCH, 2019(₹ in lakhs)

PARTICULARS NOTE NO. AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017 I. ASSETS(1) Non-Current Assets

(a) Property, Plant and Equipment 3 6,951.80 7,392.44 7,916.45 (b) Capital Work-in-Progress 4 97.79 12.22 65.51 (c) Investment Property - - - (d) Other Intangible Assets 5 164.57 221.30 254.79 (e) Intangible Assets under Development - - - (f) Financial Assets

i) Investments 6 11.92 11.92 511.92 ii) Trade Receivables 7 15,099.77 11,926.14 9,927.93 iii) Loans 8 228.81 232.31 347.31 iv) Other Financial Assets 9 - 15,340.50 7,305.92 19,476.29 1.02 10,788.18

(g) Deferred Tax Assets (Net) 10 8,240.12 7,619.02 5,031.27 (h) Other Non-Current Assets 11 2,048.42 878.62 1,018.29

(2) Current Assets (a) Inventories 12 145.91 148.47 153.21 (b) Financial Assets

i) Investments - - - ii) Trade Receivables 13 29,486.34 26,671.75 17,862.72 iii) Cash and Cash Equivalents 14 730.17 2,891.01 233.10 iv) Other Bank Balances 15 53,412.12 48,085.67 55,982.94 v) Loans 16 758.09 753.68 566.96 vi) Other Financial Assets 17 8,153.36 92,540.08 1,336.26 79,738.37 1,463.86 76,109.58

(c) Current Tax Assets (Net) 18 9,706.90 7,727.66 8,545.51 (d) Other Current Assets 19 8,269.37 7,633.30 4,974.31 TOTAL ASSETS 143,505.46 130,847.69 114,857.10

II. EQUITY AND LIABILITIES(A) EQUITY

(a) Equity Share Capital 20 4,013.84 4,013.84 4,013.84 (b) Other Equity 21 30,032.11 34,045.95 16,570.23 20,584.07 10,634.02 14,647.86

(B) LIABILITIES (1) Non-Current Liabilities

(a) Financial Liabilities i) Borrowings - - - ii) Trade Payables 22

(A) Total outstanding dues of micro enterprises and small enterprises

1,279.31 1,256.40 1,032.15

(B) Total outstanding dues of creditors other than micro enterprises and small enterprises

5,828.73 6,249.79 6,202.25

iii) Other Financial Liabilities 23 928.45 8,036.49 883.33 8,389.52 4,964.92 12,199.32 (b) Provisions 24 40,641.10 38,050.17 33,354.16 (c) Deferred Tax Liabilities (Net) 10 - - - (d) Other Non-Current Liabilities 25 2,356.03 4,241.00 4,366.89

(2) Current Liabilities (a) Financial Liabilities

i) Borrowings - - - ii) Trade Payables 26

(A) Total outstanding dues of micro enterprises and small enterprises

2,549.04 2,762.35 1,479.42

(B) Total outstanding dues of creditors other than micro enterprises and small enterprises

8,998.05 9,761.56 11,298.34

iii) Other Financial Liabilities 27 27,465.24 39,012.33 14,923.24 27,447.15 8,169.15 20,946.91 (b) Other Current Liabilities 28 11,262.71 13,444.46 10,893.67 (c) Provisions 29 8,150.85 18,691.32 18,448.29 (d) Current Tax Liabilities (Net) 18 - - -

TOTAL EQUITY AND LIABILITIES 143,505.46 130,847.69 114,857.10 Note No.1 to 40 form an integral part of Financial Statements In terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS

Sd/- (PRAVEER RANJAN)

PARTNER Memb.No.076295

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : RanchiDate : 11th September, 2019 UDIN : 19076295AAAAAB1433

76

MECON

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2019

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

I. Revenue from Operations 30 47,920.36 48,037.08

II. Other Income 31 5,119.69 10,924.95

III. TOTAL INCOME (I+II) 53,040.05 58,962.03

IV. EXPENSES:

(a) Purchases of Equipments & Direct Expenses 32 9,070.36 13,768.34

(b) (Accretion)/Decretion to Jobs-in-Progress 33 1,992.28 (78.40)

(c) Employee Benefits Expenses 34 28,822.45 31,387.78

(d) Finance Costs 35 142.11 165.91

(e) Depreciation and Amortisation Expenses 36 766.33 935.46

(f) Other Expenses 37 11,249.08 8,381.11

TOTAL EXPENSES (IV) 52,042.61 54,560.20

V. Profit/(Loss) before exceptional items and tax (III-IV) 997.44 4,401.83

VI. Exceptional Items — –

VII. Profit/(Loss) before tax (V-VI) 997.44 4,401.83

VIII. Tax Expense:

(a) Current Tax 1,588.12 1,187.25

(b) Deferred Tax (1,964.69) (2,587.75)

(c) Taxes relating to Earlier Years - -

IX. Profit/(Loss) for the year (VII-VIII) 1,374.01 5,802.33

X. Other Comprehensive Income

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

Re-measurement of Defined Benefit Plans (203.14) 133.88

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

Re-measurement of Defined Benefit Plans 43.77 -

XI. Total Comprehensive Income for the year (IX+X) 1,214.64 5,936.21

XII. Earnings per equity share (Face Value ` 10/- each) 40.13

Basic & Diluted (`) 3.42 14.46

Note No.1 to 40 form an integral part of Financial Statements

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

Sd/- (PRAVEER RANJAN)

PARTNER Memb.No.076295

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : Ranchi

Date : 11th September, 2019

UDIN : 19076295AAAAAB1433

77

MECON

MECON Limited

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH 2019

A. EQUITY SHARE CAPITAL (₹ in lakhs)

ParticularsBalance as at 31st

March, 2018

Changes in Equity Share Capital

during the year

Balance as at 31st March, 2019

Equity Share Capital 4,013.84 - 4,013.84

B. OTHER EQUITY (₹ in lakhs)

Particulars

Reserves and SurplusOther

Comprehensive Income

TOTALCapital

Redemption Reserve $

CSR Activity Reserve $$

General Reserve

Retained Earnings

Re measurement of Defined Benefit

Plans

Balance as at 1st April, 2017 6,300.00 15.25 9,852.39 (3,156.88) (2,376.74) 10,634.02

Net Profit / (Loss) during the period - - - 5,802.33 - 5,802.33

Remeasurement of gains / (losses) on Defined Benefit Plans - - - - 133.88 133.88

Dividend on Equity Shares - - - - - -

Dividend Distribution Tax - - - - - -

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

Transferred to Retained Earnings during the period - (15.25) - - - (15.25)

Transferred from CSR Activity Reserve during the priod - - - 15.25 - 15.25

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

Transferred to General Reserve - - - - - -

Adjusted / written back on Revaluation Reserve - - - - - -

Balance as at 31st March, 2018 6,300.00 - 9,852.39 2,660.70 (2,242.86) 16,570.23

Adjustment due to Ind AS Implementation - - - 13,485.57 - 13,485.57

Net Profit / (Loss) during the period - - - 1,374.01 - 1,374.01

Remeasurement of gains / (losses) on Defined Benefit Plans - - - - (159.37) (159.37)

Dividend on Equity Shares - - - (1,027.19) - (1,027.19)

Dividend Distribution Tax - - - (211.14) - (211.14)

Transferred from Retained Earnings during the period - 87.96 - - - 87.96

Transferred to Retained Earnings during the period - (16.92) - - - (16.92)

Transferred from CSR Activity Reserve during the period - - - 16.92 - 16.92

Transferred to CSR Activity Reserve during the period - - - (87.96) - (87.96)

Transferred to General Reserve - - - - - –

Adjusted / written back on Revaluation Reserve - - - - - –

Balance as at 31st March, 2019 6,300.00 71.04 9,852.39 16,210.91 (2,402.23) 30,032.11

$ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act.$$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc.

Note No.1 to 40 form an integral part of Financial StatementsIn terms of our report of even date For V. ROHATGI & CO. CHARTERED ACCOUNTANTS

Sd/- (PRAVEER RANJAN)

PARTNER Memb.No.076295

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : RanchiDate : 11th September, 2019 UDIN : 19076295AAAAAB1433

78

MECON

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2019 (Indirect Method)

(₹ in lakhs)

2018-19 2017-18

Cash Flows from Operating Activities

Net Profit/(Loss) before Taxation 997.44 4,401.83

Add : Adjustments for

Depreciation & Amortisation 766.33 935.46

Loss on Sale/Disposal of Fixed Assets 0.17 2.02

Provision for Bad & Doubtful Trade Receivables / ECL 2,644.03 651.96

Provision for impairment in the value of Investments - 500.00

Other Provisions 2,438.20 926.98

Finance Costs 142.11 165.91

5,990.84 3,182.33

Less : Adjustments for

Profit on Sale/Disposal of Fixed Assets 5.16 0.69

Interest Income 3,770.82 3,872.74

Dividend Received 1.60 1.60

3,777.58 3,875.03

Operating Profit/(Loss) before Working Capital Changes 3,210.70 3,709.13

Add : Adjustments for

(Increase) / Decrease in Inventories 2.56 4.74

(Increase) / Decrease in Trade Receivables (9,025.60) (11,459.20)

(Increase) / Decrease in Loans (174.85) (144.82)

(Increase) / Decrease in Other Current Financial Assets 2,655.02 127.60

(Increase) / Decrease in Tax Assets (3,523.59) (369.40)

(Increase) / Decrease in Other Non-Financial Assets (2,424.83) (2,870.87)

Increase / (Decrease) in Trade Payables (1,374.98) 17.94

Increase / (Decrease) in Financial Liabilities 4,149.15 2,242.11

Increase / (Decrease) in Provisions 3,090.36 5,072.92

Increase / (Decrease) in Non-Financial Liabilities (2,766.69) 2,352.96

(9,393.45) (5,026.02)

Cash Generated from Operations (6,182.75) (1,316.89)

Less : Taxes Paid - -

Net Cash from Operating Activities {A} (6,182.75) (1,316.89)

79

MECON

MECON Limited

2018-19 2017-18

Cash Flows from Investing Activities

Purchase of Property, Plant & Eqpt. and Intangible Assets

(371.18) (329.28)

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

21.64 3.28

(Increase) / Decrease in Deposits with Bank 2,440.41 154.10

Interest Received 3,309.88 4,311.01

Dividend Received 1.60 1.60

Net Cash from Investing Activities {B} 5,402.35 4,140.71

Cash Flows from Financing Activities

Dividend including Dividend Tax Paid (1,238.33) -

Finance Costs (142.11) (165.91)

Net Cash from Financing Activities {C} (1,380.44) (165.91)

Net Increase/(Decrease) in Cash & Cash Equivalent {A}+{B}+{C} (2,160.84) 2,657.91

Cash and Cash Equivalent at the beginning 2,891.01 233.10

Cash and Cash Equivalent at the end 730.17 2,891.01

Note No.1 to 40 form an integral part of Financial Statements

Cash & Cash Equivalent represents

i) Cash at Bank (Current A/c & Flexi Deposit A/c) 724.61 2,882.19

ii) Cheques & Drafts on hand - -

iii) Cash & Stamps on hand 5.56 8.82

730.17 2,891.01

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

Sd/- (PRAVEER RANJAN)

PARTNER Memb.No.076295

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : Ranchi

Date : 11th September, 2019

UDIN : 19076295AAAAAB1433

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2019 (Indirect Method) (Contd.)

(₹ in lakhs)

80

MECON

NOTE 1 : CORPORATE AND GENERAL INFORMATION

MECON LIMITED (“the Company”) is India’s frontline Consultancy, Engineering & EPC Solution provideracrosssectors,withextensivecapabilitiesinSteelIndustry.TheCompany,awhollyownedGovernmentofIndiaEnterpriseunderMinistryof Steel, thatwas incorporatedon31stMarch, 1973 and is domiciled in India.TheCompanyhasitsregisteredofficesituatedatVivekanandaPath,Doranda,Ranchi–834002,Jharkhand,India.TheCompanyoperatesinthreemajorsegments,namely,Metals,Energy&Infrastructure.

Thesefinancialstatementsfortheperiodended31stMarch,2019wereapprovedforissuebytheBoardofDirectorsoftheCompanyintheirmeetingheldon6thSeptember,2019.

NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1.1 Statement of Compliance

Thefinancialstatementsareprepared inaccordancewithgenerallyacceptedaccountingprinciples inIndia,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct,2013/1956andrelevantrulesasapplicable.

1.2 Basis of Measurement

Thefinancialstatementsarepreparedonagoingconcernbasisandonaccrualbasisofaccountingunderthehistoricalcostconceptexceptasotherwisementionedinthepolicy.

1.3 Functional and Presentation Currency

TheamountsinfinancialstatementsandnotesarepresentedinIndianRupees(INR)(₹)whichisthefunctionalcurrencyoftheCompany.AllfinancialinformationpresentedinINR(₹)hasbeenroundedofftothenearestINR₹inlakhswithtwodecimalplaces,exceptasotherwisestated.

1.4 Use of Estimates and Management Judgment Inpreparing thefinancial statements in conformitywith accountingprinciples generally accepted in

India,IndianAccountingStandardsasnotified/amendedfromtimetotime,provisionsoftheCompaniesAct2013/1956andrelevantrulesasapplicable,theCompanymakesbestestimates,assumptionsandjudgmentsthatmayaffectthereportedamountofassetsandliabilitiesandthedisclosureofcontingentassetsandliabilitiesasatthereportingdateandtheamountofrevenueandexpensesduringthereportingperiod.Theestimates and judgments arebasedonprevious experience andother factors consideredreasonableandprudentinthecircumstances.Actualresultinsomecasesmaydifferfromsuchestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Anyrevisionofsuchestimatesisrecognisedduringtheperiodinwhichthesameisdetermined.

In order to enhance understanding of the financial statements, information about significant areasof estimation,uncertainty and critical judgments in applying accountingpolicies thathave themostsignificanteffectontheamountsrecognisedinthefinancialstatementsareasfollows:

1.4.1 Revenue The company recognizes revenue over time by measuring the progress towards satisfaction of the

performanceobligationdependinguponthenature/scope,etc.ofjob.1.4.2 Defined Benefit Obligations Employeebenefitobligationsaremeasuredonthebasisofactuarialassumptionswhichincludemortality

andwithdrawalratesaswellasassumptionsconcerningfuturedevelopmentsindiscountrates,medicalcosttrends,anticipationoffuturesalaryincreaseandtheinflationrate.However,anychangesintheseassumptionsmayhaveimpactontheresultingcalculations.

1.4.3 Provisions and Contingencies Assessmentsundertakeninrecognizingprovisionsandcontingencieshavebeenmadeasperthebest

judgementbasedonthecurrentinformationasavailable.

81

MECON

MECON Limited

1.5 Current and Non-Current Classification

1.5.1 AllitemsofassetsandliabilitiesintheBalanceSheetareclassifiedasCurrentandNon-currentasperrequirementoftheCompaniesAct,2013,asapplicable.

1.5.2 Normaloperatingcycleofthecompanyisconsidered12monthskeepinginviewpastexperienceandnatureofbusinessoftheCompany.

1.5.3 TradeReceivables(i.e.duesarisingonlyfromclientsinthenormalcourseofbusiness)outstandingforaperiodexceeding sixmonths isdeterminedafter taking intoaccount30daysnormalcreditperiodallowedbytheCompany.

1.5.4 DuesonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusinessaretreatedasTrade Payables.

2. PROPERTY, PLANT AND EQUIPMENT

2.1 Recognition

2.1.1 ItemsofProperty,PlantandEquipmentareinitiallyrecognisedatcostandsubsequentlycarriedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosses,ifany.Costcomprisesanydirectlyattributablecostsnetoftax/dutycreditavailedandincludesborrowingcostswhichmeetcapitalizationcriteria, expenses incidental to acquisition, installation, etc. of bringing the items of Property, Plantand Equipment to the location and working condition for its intended use but excludes training,administrationandoverheadcosts.

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

2.1.3 Itemsofmajorspareparts,stand-byequipmentandservicingequipmentwhichmeetthedefinitionofProperty,PlantandEquipmentarecapitalised.Otherwise,theyareclassifiedasinventoriesinaccordancewithIndAS–2.

2.1.4 ItemsofProperty,PlantandEquipmentpurchasedduringtheyearcostingupto₹1,000/-eachitemarechargedtorevenue.

2.1.5 Thecostof any softwarepurchasedalongwith the computerhardware,beingan integralpartof thehardware,iscapitalizedalongwiththecostofthehardware.

2.1.6 ItemsofProperty,PlantandEquipmentheldunderfinanceleasearerecognisedasperIndAS-17.

2.1.7 AdvancespaidtowardstheacquisitionofProperty,PlantandEquipmentandoutstandingateachBalanceSheetdateareclassifiedas“CapitalAdvances”underNon-CurrentAssets.

2.2 Subsequent Costs

2.2.1 Subsequent major expenditure on items of Property, Plant and Equipment fulfilling the criteria ofrecognition is recognised as an increase in the carrying amount of the items of Property, Plant andEquipment.

2.2.2 Thecostsoftheday-to-dayservicingofProperty,PlantandEquipmentarerecognisedasexpensesintheStatementofProfitandLossasandwhentheyareincurred.

2.3. Derecognition

2.3.1 Items of Property, Plant and Equipment are derecognised on disposal or when no future economicbenefits are expected from its intendeduse.Gains / losses ondisposal of an itemofProperty,PlantandEquipmentaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountofProperty,PlantandEquipment,andarerecognisedintheStatementofProfitandLoss.

2.3.2 ItemsofProperty,PlantandEquipmentheldforimmediatesaleinthepresentcondition,theirsaleishighlyprobableandtheircarryingamountwillberecoveredprincipallythroughasaletransactionareclassifiedseparatelyas“Non-CurrentAssetsHeldforSale”attheloweroftheircarryingamountandfairvaluelesscoststosale.

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2.4 Depreciation

2.4.1 DepreciationonProperty,PlantandEquipmentiscommencedwhenitisavailableforintendeduseandisprovidedforunder“Straight-LineMethod”,consideringresidualvalueof5%oftheoriginalcostoftheProperty,PlantandEquipment,overtheusefullifeoftheProperty,PlantandEquipmentinlinewithScheduleIIoftheCompaniesAct,2013andrelevantrulesasapplicable.

2.4.2 ItemsofProperty,PlantandEquipmentcostingabove₹1,000/-eachitemandupto₹5,000/-eachitemarefullydepreciatedintheyearofacquisition.

2.4.3 ItemsofProperty,PlantandEquipmentheldunderFinanceLeasearedepreciatedasperScheduleIIoftheCompaniesAct,2013.However,ifthereisnoreasonablecertaintythattheCompany(lessee)willobtaintheownershipbytheendoftheleaseterm,theassetisfullydepreciatedovertheleasetermoritsusefullife,whicheverisshorter.

2.4.4 WherecostofapartofanitemofProperty,PlantandEquipmentissignificantinrelationtothetotalcostoftheitemandusefullifeofthatpartisdifferentfromtheusefullifeoftheremainingasset,usefullifeofthatsignificantpartisdeterminedseparatelyforcomputationofdepreciation.

2.4.5 Depreciationonadditionsto/deductionsfromProperty,PlantandEquipmentduringtheyearischargedonpro-ratabasisfrom/uptothedateonwhichtheassetisavailableforuse/disposed.

2.4.6 DepreciationonsubsequentcostofanitemofProperty,PlantandEquipmentcapitalizedischargedoffprospectivelyovertheremainingusefullifeofmainitemofProperty,PlantandEquipment.

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

2.4.8 Depreciation onProperty, Plant andEquipment is ceased at the earlier of, the date that the asset isclassifiedasheldforsaleinaccordancewithIndAS–105andthedatethattheassetisde-recognised.

2.5 Capital Work-In-Progress

ThecostofconstructionofProperty,PlantandEquipmentsincurredtilltheyarereadyfortheirintendedusearerecognisedasCapitalWork-in-Progress.

3. INTANGIBLE ASSETS

3.1 Recognition

3.1.1 Expenditureincurredonacquisitionoftechnicalknow-how,engineeringmaterials,computersoftware(whichisnotanintegralpartofrelatedhardware),etc.istreatedasintangibleasset.

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

3.1.3 Expenditureincurredonresearch&developmentactivitiesareaccountedasexpensesintheStatementofProfitandLoss.

3.2 Derecognition

Anintangibleassetisderecognisedwhennofutureeconomicbenefitsareexpectedfromtheirintendeduseorupontheirdisposal.Gains/lossesondisposalofanitemofintangibleassetaredeterminedbycomparingtheproceedsfromdisposalwiththecarryingamountofintangibleassetsandarerecognisedintheStatementofProfitandLoss.

3.3 Amortisation

3.3.1 Amortisationiscommencedfromthedatetheintangibleassetisavailableforintendeduse.3.3.2 Expenditureincurredonacquisitionofsoftwareisamortisedonstraightlinemethodoveraperiodof

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

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3.3.3 Expenditureincurredonacquisitionofotherintangibleassetsisamortisedoveraperiodoffiveyearsonstraightlinemethod.

4. BORROWING COST

4.1 BorrowingcostsincurredbytheCompanywhicharedirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalizedaspartofthecostofthatasset.

4.2 Otherborrowingcostsarerecognisedasexpenseintheperiodinwhichtheseareincurred.

5. IMPAIRMENT OF NON-FINANCIAL ASSETS

TheCompanyreviewsthecarryingamountofitsnon-financialassets,whenevercircumstancesindicatethatthecarryingamountoftheassetmaynotberecoverable.Ifsuchassetsareconsideredtobeimpaired,theimpairmenttoberecognisedismeasuredbytheamountbywhichthecarryingamountoftheassetsexceedsthehigherofitsfairvaluelesscoststosellanditsvalueinuse.Ifitisfoundthatsomeoftheimpairmentlossesalreadyrecognisedneedtobereversed,thesamearerecognisedintheStatementofProfit&Lossintheyearofreversal.

6. INVENTORIES

6.1 Closingstockofstores&spares,printing&stationeryitemsandotherconsumablesarevaluedatlowerofcost,onFirst inFirstOut (FIFO)basis,andnet realisablevalue.Consumptionof theabove itemsduring the reportingperiod is arrivedatbydeducting thevalueofphysical stock inhandason thereportingdatefromtheaggregatevalueofopeningstockandpurchasesduringthereportingperiod.

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

6.2 Provision for obsolescent / surplus / non-moving inventory ismade based on best estimates of netrealisablevalueofsuchinventories.

7. FOREIGN CURRENCY TRANSACTION AND TRANSLATION

7.1 Foreign currency transactions are translated into the functional currencyof theCompanyusing theexchangerateprevailingatthedateofthetransactionsasapplicable.

7.2 Monetaryassetsandliabilitiesdenominatedinforeigncurrencyaretranslatedatthefunctionalcurrencyrate of exchange at the reporting date as applicable. Exchange differences arising on settlement ortranslationofmonetaryitemsarerecognisedintheStatementofProfitandLossintheyearinwhichitarises.

7.3 Non-monetaryassetsandliabilitiesdenominatedinforeigncurrencyandmeasuredathistoricalcostaretranslatedusingtheexchangerateatthedateofthetransactionasapplicable.

8. REVENUE & OTHER INCOME RECOGNITION

TheCompanyderivesitsrevenuefromdesign,engineering&consultancyservices,executionofEPCprojects/constructioncontracts,projectmanagement&consultancyservices.Otherincomecomprisesinterestondepositswithbanks/financial institutions/employees,dividendfrominvestments,othermiscellaneous income, etc.

8.1 Engineering / Consultancy Services

8.1.1 RevenuefromEngineering&ConsultancyservicesrenderedtotheclientsagainstcontractsorLettersofIntentorWorkordersorexchangeofletterswhichstipulatelumpsumfeeisrecognizedovertimeusingoutputmethodbasedonsatisfactionoftheperformanceobligation/righttoreceivepayment.However,revenueshallberecogniseduptothevalueofinvoicesraisedafteradjustmentofdownpaymentinvoicesonproportionatebasis,unlessstatedotherwiseinthecontract.

8.1.2 Revenue from services rendered other than lump sum fee basis (including reimbursable jobs) isrecognizedat100%valueoftheinvoicesraisedtowardssatisfactionoftheperformanceobligation.

8.2 Execution of Projects / Construction Contracts

8.2.1 Revenue from execution of projects/ construction contracts (including sale of spares) for the clients

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againstcontractsorlettersofintentorworkordersorexchangeofletterswhichstipulatefixedpriceisrecognizedovertimeusingoutputmethodbasedonsatisfactionoftheperformanceobligation.

8.2.2 Revenuefromcostplusconstructioncontracts/depositworkswithturnkeyscopeisrecognizedtotheextentofamountbilledasperidentifiedperformanceobligationonthebasisofcontractsorlettersofintentorworkordersorexchangeoflettersreceivedfromclients

8.3 Revenueonaccountofescalation,additionalorextraclaimsetc.fromclientsandothermiscellaneousitemslikeprojectinsuranceclaimsetc.arerecognizedat100%valueasandwhentheyareadmitted.

8.4 Incaseswhereminimumundisputedtermsareagreedtobytheclient,revenueisaccountedforonthebasisofsuchundisputedterms.

8.5 Where liquidated damages arises out of contractual terms when the work is not completed withinthecompletionscheduleorfornon-achievementofanyparameter,theliquidateddamagesamountisadjustedfromthecontractfeeforrevenuerecognition.

8.6 Other Income

Dividend income from Investments is recognized as and when the right to receive the payment isestablished.

9. JOB-IN-PROGRESS

9.1 Wheretheprogresshasbeenachieved(onthebasisoftechnicalestimate)inrespectofajobbutclaimforpaymentaspercontractdoesnotarise,lowerofcostorvalueoftheworkdonebasedonpercentageofprogress,iscarriedforwardunderJob-in-Progress.However,Job-in-Progressisrecognisedconsidering90%valueonly,unlesstechnicalestimatehasreached100%.

9.2. Where thework is started on the basis of job allotted by LOI / any other communication from theclient,butthefeeisyettobesettled,thecostincurredagainstsuchjobsiscarriedforwardunderJob-in-Progress.

10. EMPLOYEE BENEFITS

10.1 Post-Employment Benefits

10.1.1 Defined Contribution Plan

Contributionspaid/payableunderdefinedcontributionplanisrecognisedonthebasisofactualliabilityonundiscountedbasisinthereportingperiodinwhichtheyareincurredandchargedtoprofitandloss.

10.1.2 Defined Benefit Plans

TheCompanyhaspost-retirementdefinedbenefitplanscomprisingRetirementGift,Post-RetirementSettlementBenefits,Post-RetirementMedicalBenefits,Gratuity andProvidentFund to the extentofinterestliabilityonprovidentfundcontribution.

Employeebenefitsexpensesunderpost-retirementdefinedbenefitplansare recognisedbasedon theactuarialvaluationasper IndAS–19asat theendof thereportingperiodusing theprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinothercomprehensiveincomeintheperiodinwhichtheyarise.

10.2 Other Long-Term Employee Benefits

Otherlong-termemployeebenefitsunderdefinedbenefitplanscomprisesof leaveencashment, long-serviceaward,leavetravelconcession/leavetravelassistanceandemployeefamilybenefitschemes.

Employeebenefitsunderother long-termdefinedbenefitplansarerecognisedbasedontheactuarialvaluationasattheendofthereportingperiodusingtheprojectedunitcreditmethodandrecognisedinprofitandloss.Anyactuarialgainsorlossesarerecognisedinprofitandlossintheperiodinwhichtheyarise.

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10.3 Short-Term Employee Benefits

Short-termbenefitscompriseofemployeecostssuchassalaries,bonus,etc.areaccruedintheyearinwhichtheassociatedservicearerenderedbyemployees.

10.4 Termination Benefits

Expensesarerecognised for terminationbenefits(includingVoluntaryRetirementCompensation) intheperiodinwhichitisincurred.

11. MATERIAL PRIOR PERIOD ERRORS

11.1 Anyexpenditureor incomewhichexceeds0.5%of turnover ineachcase,whicharise in thecurrentperiodasaresultoferrorsoromissionsinthepreparationoffinancialstatementsofoneormorepriorperiods, are treated as material prior period errors.

11.2 Materialpriorperioderrorsarecorrectedretrospectivelybyrestatingthecomparativeamountsforthepriorperiodspresented inwhich the erroroccurred. If the erroroccurredbefore the earliestperiodpresented, the opening balances of assets, liabilities and equity for the earliest period presented, arerestated.

11.3 A prior period error shall be corrected by retrospective restatement except to the extent that it isimpracticabletodetermineeithertheperiod-specificeffectsorthecumulativeeffectoftheerror.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

12.1 Provisionsforestimatedliabilitiesonaccountofguarantees&warrantiesetc.inrespectofEngineering&ConsultancyServicesandTurnkeyContractsaremadebythecompanyafterassessmentofriskandconsequentialprobableliabilitiesoncasetocasebasis.

12.2 Provisionsforliquidateddamagesaremadeasandwhenthesearedeductedand/orconsidereddeductiblebytheclientaspercontract.

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

12.4 Where the effect of time value ofmoney ismaterial, provisions are determined andmaintained bydiscountingtheexpectedfuturecashflows,whereverapplicable.

12.5 Contingent Liabilities / Contingent Assets are disclosed on the basis of best judgement. These arereviewedateachbalancesheetdateandareadjustedtoreflectthecurrentestimate.

13. INCOME TAXES

13.1 Incometaxexpensecomprisescurrentanddeferredtax.Currenttaxexpenseisrecognisedinthestatementofprofitandlossexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinothercomprehensiveincome(OCI)orequity,inwhichcaseitisrecognisedinOCIorequity.

13.2 Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantivelyenactedandasapplicableatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

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

13.4 DeferredtaxisrecognisedinthestatementofprofitandlossexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinOCIorequity,inwhichcaseitisrecognisedinOCIorequity.

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

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13.6 Deferredtaxassetsarereviewedateachreportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealized.

13.7 Additionalincometaxesthatarisefromthedistributionofdividendsarerecognisedatthesametimethattheliabilitytopaytherelateddividendisrecognised.

14. LEASES

14.1 Company as a Lessee

14.1.1 Finance Lease

Asset acquired on lease where substantially all the risks and rewards incidental to ownership aretransferredbythelessortotheCompanyisclassifiedunderfinancelease.Attheinceptionofthelease,financeleaseisrecordedatamountequaltothefairvalueoftheleasedassetor,iflower,thepresentvalueoftheminimumleasepayments.

TheinterestelementofleasepaymentsischargedtoStatementofProfitandLoss,asfinancecostsovertheperiodofthelease.

14.1.2 Operating Lease

Assetacquiredon leasewhereasignificantportionofriskandrewardsofownershipareretainedbythelessorisclassifiedunderoperatinglease.LeaserentalarechargedtoStatementofProfitandLossonstraight-linebasisexceptwherescheduledincreaseinrentcompensatethelessorforexpectedinflationarycosts.

14.2 Company as a Lessor

14.2.1 Operating Lease

Asset givenon leasewhere theCompanydoesnot transfer substantially all the risks and rewardsofownershipoftheassetisclassifiedunderoperatinglease.Receiptsunderoperatingleasearerecognizedin theStatementofProfitandLossonstraight linebasisover the lease termexceptwherescheduledincreaseinrentcompensatestheCompanywithexpectedinflationarycosts.

15. DIVIDENDS

DividendspayabletotheshareholdersoftheCompanyarerecognisedaschangesinequityintheperiodinwhichtheyareapprovedbytheBoardofDirectorsandtheShareholder’sMeetingrespectively.

16. STATEMENT OF CASH FLOWS

StatementofCashFlowsispreparedunder“IndirectMethod”inaccordancewithIndAS–7“StatementofCashFlows”.

17. FINANCIAL INSTRUMENTS

Afinancial instrument isanycontract thatgivesrise toafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.

17.1 Financial Assets

17.1.1 Initial Recognition

Financial assets are recognised initially at fair value and transaction cost that is attributable to theacquisitionofthefinancialassetisalsoadjusted.

17.1.2 Subsequent Measurement Subsequent to initial recognition, all financial assets aremeasured either at amortised cost or at fair

value.Wherefinancialassetsaremeasuredatfairvalue,gainsandlossesarerecognisedentirelyinprofitandloss(fairvaluethroughprofitandloss,FVTPL).

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

Equityinvestmentsinsubsidiariesandjointventuresaremeasuredatcost.

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17.1.3 Derecognition

AfinancialassetisprimarilyderecognisedwhentherighttoreceivecashflowsfromthefinancialassethasexpiredortheCompanyhastransferreditsrightstoreceivecashflowsfromthefinancialasset.

17.1.4 Impairment of financial assets

Trade Receivables

As a practical expedient theCompany has adopted ‘simplified approach’ using the provisionmatrixmethodforrecognitionofexpectedlossontradereceivables.

Investment in subsidiaries, joint ventures and associates

TheCompanyassesseswhetherthereisanyindicationthattheseinvestmentsarebeimpaired.Ifanysuchindicationexists,theinvestmentisconsideredforimpairmentbasedonthefairvaluethereof.

Other Financial Assets

Forrecognitionofimpairmentlossonotherfinancialassetsandriskexposure,theCompanydetermineswhethertherehasbeenasignificantincreaseinthecreditrisksinceinitialrecognitionandifcreditriskhasincreasedsignificantly,impairmentlossisprovided.

ThelossesarisingfromimpairmentarerecognisedintheStatementofProfitandLoss.

17.2 Financial Liabilities

17.2.1 Initial Recognition

Financial liabilitiesarerecognisedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionoffinancialliabilitiesisalsoadjusted.

17.2.2 Subsequent measurement

Financialliabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.GainsandlossesarerecognisedinprofitandlosswhentheliabilitiesarederecognisedaswellasthroughtheEIRamortizationprocess.

17.2.3 Derecognition

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferent terms, or the terms of an existing liability are substantiallymodified, such an exchange ormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionofanewliability.Thedifferenceintherespectivecarryingamountsisrecognisedinthestatementofprofitandloss.

17.3 Offsetting of Financial Instruments:

Financialassetsandfinancial liabilitiesareoffsetandthenetamountisreportedinthebalancesheetwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasisorrealizetheassetandsettletheliabilitysimultaneously.Thelegallyenforceablerightmustnotbecontingentonfutureeventsandmustbeenforceableinthenormalcourseofbusinessandintheeventofdefault,insolvencyorbankruptcyofthecounterparty.

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3.R

oad,

Brid

ges

& C

ulve

rts

0.5

5 -

-

-

0

.55

0.5

3 -

-

-

0

.53

0.0

2 0

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4.W

ater

Sup

ply

and

Sew

erag

e 3

6.17

-

-

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3

6.17

1

1.03

-

-

2

.12

13.

15

23.

02

25.

14

5.Fu

rnitu

re &

Fix

ture

s 1

,119

.79

1.0

9 0

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-

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20.7

1 7

95.4

6 0

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-

60.

62

855

.91

264

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324

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6.M

otor

Veh

icle

s 6

7.74

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6

7.74

3

3.62

-

-

7

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40.

83

26.

91

34.

12

7.O

ffice

Equ

ipm

ents

952

.81

19.

98

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4 -

9

67.4

5 6

50.5

2 4

.44

-

85.

42

731

.50

235

.95

302

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8.Co

mpu

ter

Har

dwar

e 2

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16.

09

6.6

4 -

2

,336

.58

1,8

95.9

8 4

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-

179

.14

2,0

70.8

4 2

65.7

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31.1

5

9.La

bora

tory

Equ

ipm

ents

591

.85

-

0.1

4 -

5

91.7

1 3

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7 -

-

2

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4

03.3

8 1

88.3

3 2

17.2

8

10.

Elec

tric

al In

stal

latio

n 1

,265

.47

86.

15

3.5

1 -

1

,348

.11

661

.09

2.3

2 -

9

8.71

7

57.4

8 5

90.6

3 6

04.3

8

11.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y 2

09.5

0 0

.83

0.0

1 -

2

10.3

2 1

97.5

9 -

-

2

.03

199

.62

10.

70

11.

91

TOTA

L 9

,415

.08

161

.38

15.

81

(186

.53)

9,3

74.1

2 5

,693

.12

11.

21

(69.

21)

579

.52

6,1

92.2

2 3

,181

.90

3,7

21.9

6

90

MECON

Sl.

No.

Part

icul

ars

COST

D

EPR

ECIA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

18

Addi

tion/

Ad

just

-m

ent

Sale

/ Ad

-ju

stm

ent

Inte

r H

ead

Ad-

just

men

t

As o

n 31

.03.

19As

on

01.0

4.18

On

Sale

/ Ad

just

-m

ent

Inte

r H

ead

Ad-

just

men

t

Dur

ing

the

perio

d

Upt

o 31

.03.

19 A

s on

31

.03.

19

As

on

31.0

3.18

1.La

nd 1

97.4

6 6

.21

-

-

203

.67

-

-

-

-

-

203

.67

197

.46

2.Bu

ildin

g 4

,057

.11

5.3

7 5

.22

-

4,0

57.2

6 9

70.6

0 4

.59

-

68.

02

1,0

34.0

3 3

,023

.23

3,0

86.5

1

3.R

oad,

Brid

ges

& C

ulve

rts

318

.12

-

-

-

318

.12

291

.71

-

-

10.

43

302

.14

15.

98

26.

41

4.W

ater

Sup

ply

and

Sew

erag

e 2

83.3

5 2

.51

-

-

285

.86

177

.49

(0.

01)

-

10.

20

187

.70

98.

16

105

.86

5.Fe

nces

82.

20

-

-

-

82.

20

78.

09

-

-

-

78.

09

4.1

1 4

.11

6.Pl

ant &

Equ

ipm

ents

490

.62

7.8

2 -

-

4

98.4

4 2

84.9

8 -

-

2

5.09

3

10.0

7 1

88.3

7 2

05.6

4

7.Fu

rnitu

re &

Fix

ture

s 1

14.1

7 8

.19

-

-

122

.36

79.

85

-

-

7.4

2 8

7.27

3

5.09

3

4.32

8.M

otor

Veh

icle

s 1

.05

-

-

-

1.0

5 0

.88

-

-

0.0

4 0

.92

0.1

3 0

.17

9.O

ffice

Equ

ipm

ents

31.

59

1.7

6 -

-

3

3.35

2

2.36

-

-

3

.17

25.

53

7.8

2 9

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10.

Com

pute

r H

ardw

are

20.

20

-

-

-

20.

20

10.

77

(0.

01)

-

2.6

5 1

3.43

6

.77

9.4

3

11.

Elec

tric

al In

stal

latio

n 9

22.8

7 8

.65

-

-

931

.52

391

.75

0.0

1 -

7

1.18

4

62.9

2 4

68.6

0 5

31.1

2

12.

Mis

c. A

rtic

les

incl

udin

g Li

brar

y 6

.22

-

-

-

6.2

2 5

.94

-

– -

5

.94

0.2

8 0

.28

TOTA

L 6

,524

.96

40.

51

5.2

2 —

6,5

60.2

5 2

,314

.42

4.5

8 —

198

.20

2,5

08.0

4 4

,052

.21

4,2

10.5

4

NO

TE

3.2

- P

RO

PE

RT

Y, P

LAN

T A

ND

EQ

UIP

ME

NT

(S

OC

IAL

AM

EN

ITIE

S)

As

on

31st

Mar

ch, 2

019

(₹

in la

khs)

Cont

d...

91

MECON

MECON Limited

As

on

31st

Mar

ch, 2

018

(₹

in la

khs)

Sl.

No.

Part

icul

ars

COST

D

EPR

ECIA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

17

Addi

tion/

Ad

just

-m

ent

Sale

/ Ad

-ju

stm

ent

Inte

r H

ead

Ad-

just

men

t

As o

n 31

.03.

18As

on

01.0

4.17

On

Sale

/ Ad

just

-m

ent

Inte

r H

ead

Ad-

just

men

t

Dur

ing

the

perio

d

Upt

o 31

.03.

18 A

s on

31

.03.

18

As

on

31.0

3.17

1.La

nd 1

97.4

6 -

-

-

1

97.4

6 -

-

-

-

-

1

97.4

6 1

97.4

6

2.Bu

ildin

g 3

,868

.13

2.4

5 -

1

86.5

3 4

,057

.11

832

.98

-

69.

21

68.

41

970

.60

3,0

86.5

1 3

,035

.15

3.R

oad,

Brid

ges

& C

ulve

rts

318

.12

-

-

-

318

.12

228

.81

-

-

62.

90

291

.71

26.

41

89.

31

4.W

ater

Sup

ply

and

Sew

erag

e 2

83.3

5 -

-

-

2

83.3

5 1

67.3

9 -

-

1

0.10

1

77.4

9 1

05.8

6 1

15.9

6

5.Fe

nces

82.

20

-

-

-

82.

20

78.

09

-

-

-

78.

09

4.1

1 4

.11

6.Pl

ant &

Equ

ipm

ents

489

.44

1.1

8 -

-

4

90.6

2 2

59.7

1 -

-

2

5.27

2

84.9

8 2

05.6

4 2

29.7

3

7.Fu

rnitu

re &

Fix

ture

s 1

12.6

5 1

.52

-

-

114

.17

72.

57

-

-

7.2

8 7

9.85

3

4.32

4

0.08

8.M

otor

Veh

icle

s 1

.01

0.0

4 -

-

1

.05

0.8

0 -

-

0

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0.8

8 0

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0.2

1

9.O

ffice

Equ

ipm

ents

31.

17

0.4

2 -

-

3

1.59

1

9.89

-

(

0.46

) 2

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22.

36

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1.28

10.

Com

pute

r H

ardw

are

16.

59

3.6

1 -

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2

0.20

7

.77

-

-

3.0

0 1

0.77

9

.43

8.8

2

11.

Elec

tric

al In

stal

latio

n 7

87.5

0 1

35.3

7 -

-

9

22.8

7 3

25.4

0 -

0

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65.

89

391

.75

531

.12

462

.10

12.

Mis

c. A

rtic

les

incl

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g Li

brar

y 6

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-

-

-

6.2

2 5

.94

-

-

-

5.9

4 0

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0.2

8

TOTA

L 6

,193

.84

144

.59

-

186

.53

6,5

24.9

6 1

,999

.35

-

69.

21

245

.86

2,3

14.4

2 4

,210

.54

4,1

94.4

9

92

MECON

NOTE 3.3 - PROPERTY, PLANT & EQUIPMENT, ETC.

A) LAND

(i) UnderSection7ofPublicSectorIron&SteelCompanies(Restructuring)andMiscellaneousProvisionsAct, 1978, landmeasuring 118.95 acres for residential colony acquiredby theGovernmentof India fortheerstwhileHindustanSteelLimited(HSL)wastransferredinfavourofMECONLimitedbytheGazetteNotificationdated30.4.1978.Deedofconveyanceforlandmeasuring118.53acreshasbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimitedon1stAugust,2016.Balancelandmeasuring0.42acreshasbeenreleasedandhandedovertoGovernmentofJharkhandforroadpurpose.Outofthelandmeasuring118.53acresexecutedinfavourofMECONLimited,21.06acreshavebeenallottedtoSteelAuthorityofIndiaLimited(SAIL),Research&DevelopmentCentreforIron&Steel(RDCIS),Ranchiin1980-81forwhichtransferdeedisstillpending.Theamountreceived/receivableforsuchtransferhasbeentakenintheaccounts.

(ii) UnderSection7ofPublicSectorIron&SteelCompanies(Restructuring)andMiscellaneousProvisionsAct, 1978, landmeasuring 10.25 acres for the administrative building acquired by theGovernment ofIndiafortheerstwhileHindustanSteelLimited(HSL)wastransferredinfavourofMECONLimitedbytheGazetteNotificationdated30.4.1978.DeedofconveyanceinthisrespecthasnotyetbeenexecutedbytheGovernmentofJharkhandinfavourofMECONLimited.GovernmentofJharkhandhasbeenapproachedfordeedofconveyanceinfavourofMECONLimitedandthematterisinprogress.

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

(iv) Outof223.36acresoflandinpossessionoftheCompanyintownshipatRanchi,0.856acresoflandisunderunauthorisedoccupation.

B) BUILDINGS

(i) OfficeSpace/BuildingatSCOPEMinar,LaxmiNagar,NewDelhi,GrossBlock₹1,193.30lakhs(PreviousYear ₹1,193.30 lakhs) have been acquired from SCOPE on self financing / contribution basis withoutownershiptitledeed,thecostofacquisitionofOfficeSpace/BuildinghasbeenconsideredasBuildinganddepreciationthereonhasbeenprovidedattherateasapplicableforBuilding.

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

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

C) Assetspurchasedduringtheyearcostingabove₹1,000/-eachandupto₹5,000/-eacharefullydepreciatedintheyearofacquisition(ReferNote2Sl.No.2.4.2)w.e.f.1993-94.

93

MECON

MECON Limited

NOTE 4 - CAPITAL WORK-IN-PROGRESS

(₹ in lakhs)

Sl. No.

Particulars

Opening Balance

as on 01.04.18

Additions/ Adjustments

TotalCapitalised/ Adjustments

Balance

As on 31.03.19

As on 31.03.18

As on 01.04.17

1. Installation of Modular Furniture / Biometric Attendance System at Head Office at Ranchi, Jharkhand.

12.22 (12.22) - - — 12.22 65.51

2. Energy Meter / Walking Track / Electronic Door Detector at Township, Ranchi, Jharkhand

- 97.79 97.79 - 97.79 - -

TOTAL 12.22 85.57 97.79 — 97.79 12.22 65.51

94

MECON

NO

TE

5.1

- O

TH

ER

INT

AN

GIB

LE A

SS

ET

S

As

on

31st

Mar

ch, 2

019

(₹

in la

khs)

Sl.

No.

Part

icul

ars

COST

AM

OR

TISA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

18

Addi

tion/

Ad

just

men

t Sa

le/

Adju

stm

ent

Inte

r-H

ead

Adju

st-

men

t

As o

n 31

.03.

19

As o

n 01

.04.

18

On

Sale

/ Ad

just

men

t

Inte

r-H

ead

Adju

st-

men

t

Dur

ing

the

perio

d U

pto

31.0

3.19

As o

n 31

.03.

19

As o

n 31

.03.

18

1.Co

mpu

ter

Softw

are

(Gen

eral

) 1

,445

.77

50.

81

-

-

1,4

96.5

8 1

,231

.51

-

-

105

.00

1,3

36.5

1 1

60.0

7 2

14.2

6

2.Co

mpu

ter

Softw

are

(Soc

ial A

men

ities

) 1

3.23

-

-

-

1

3.23

6

.19

-

-

2.5

4 8

.73

4.5

0 7

.04

TOTA

L 1

,459

.00

50.

81

——

1,5

09.8

1 1

,237

.70

——

107

.54

1,3

45.2

4 1

64.5

7 2

21.3

0

As

on

31st

Mar

ch, 2

018

(₹

in la

khs)

Sl.

No.

Part

icul

ars

COST

AM

OR

TISA

TIO

N

NET

CAR

RYI

NG

AM

OU

NT

As o

n 01

.04.

17

Addi

tion/

Ad

just

men

t Sa

le/

Adju

stm

ent

Inte

r-H

ead

Adju

st-

men

t

As o

n 31

.03.

18

As o

n 01

.04.

17

On

Sale

/ Ad

just

men

t

Inte

r-H

ead

Adju

st-

men

t

Dur

ing

the

perio

d U

pto

31.0

3.18

As

on

31.0

3.18

As

on

31.0

3.17

1.Co

mpu

ter

Softw

are

(Gen

eral

) 1

,369

.17

76.

60

-

-

1,4

45.7

7 1

,123

.97

-

-

107

.54

1,2

31.5

1 2

14.2

6 2

45.2

0

2.Co

mpu

ter

Softw

are

(Soc

ial A

men

ities

) 1

3.23

-

-

-

1

3.23

3

.64

(0.

01)

-

2.5

4 6

.19

7.0

4 9

.59

TOTA

L 1

,382

.40

76.

60

-

-

1,4

59.0

0 1

,127

.61

(0.0

1) -

1

10.0

8 1

,237

.70

221

.30

254

.79

95

MECON

MECON Limited

NOTE 6 - INVESTMENTS (NON-CURRENT)

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Trade Investment - at Cost (Unquoted)

i) Investment in Equity Instruments

1) Joint Venture

5000 Equity Shares of Naira 10 each fully paid up being 50% of paid up share capital of M/s Metallurgical & Engineering Consultants (Nigeria) Limited, a Company set up in Nigeria jointly by this Company with two Nigerian Government Companies and Nigerian Citizens

7.60 7.60 7.60

Less : Provision for impairment in the value of investment 7.60 - 7.60 - 7.60 -

2) Others

50,00,000 Equity Shares of `10/- each fully paid up of “Neelachal Ispat Nigam Limited”.

500.00 500.00 500.00

Less : Provision for impairment in the value of investment 500.00 - 500.00 - - 500.00

(b) Other Investment - at Cost (Unquoted)

Investment in Equity Instruments

1) Others

106,383 Equity Shares of ̀ 10/- each fully paid-up of “Global Procurement Consultants Limited”.

11.92 11.92 11.92

(Out of the above, 6,383 Equity Shares of `10/- each fully paid-up acquired at a premium of `20/- per share subsequently.)

TOTAL 11.92 11.92 511.92

a) Aggregate amount of Quoted Investments NIL NIL NIL

b) Aggregate amount of Unquoted Investments 519.52 519.52 519.52

c) Aggregate provision for impairment of in the value of investment 507.60 507.60 7.60

NOTE 7 - TRADE RECEIVABLES (NON-CURRENT)

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

a) Considered Good - Secured — – –

b) Considered Good - Unsecured 15,099.77 11,926.14 9,927.93

c) Significant increase in Credit Risk 230.68 139.35 129.44

d) Credit Impaired 6,780.22 4,255.61 4,021.21

22,110.67 16,321.10 14,078.58

Less : Provision for Bad and Doubtful Trade Receivables / Expected Credit Loss

7,010.90 4,394.96 4,150.65

TOTAL 15,099.77 11,926.14 9,927.93

96

MECON

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

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Security Deposits

(i) Government Authorities $ 5.46 5.45 5.44

(ii) Others

Considered Good - Secured - - -

Considered Good - Unsecured 201.83 201.42 316.79

Significant increase in Credit Risk - - -

Credit Impaired 216.30 186.33 113.24

418.13 387.75 430.03

Less : Provision for doubtful deposits 216.30 201.83 186.33 201.42 113.24 316.79

(b) Loans to Related Parties - - -

(c) Others

(i) Advance to Employees $ 1.63 6.97 7.57

(ii) Interest Receivable on Advance to Employees $

9.83 13.06 14.50

(iii) Claims Recoverable

Considered Good - Secured - - -

Considered Good - Unsecured 10.06 5.41 3.01

Significant increase in Credit Risk - - -

Credit Impaired 260.31 116.34 116.34

270.37 121.75 119.35

Less : Provision for Claims Recoverable 260.31 10.06 116.34 5.41 116.34 3.01

TOTAL 228.81 232.31 347.31

$ Considered good - Unsecured

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

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Bank Balances - 7,300.00 1.00

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

(b) Interest accrued but not due - 5.92 0.02

TOTAL - 7,305.92 1.02

97

MECON

MECON Limited

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

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Deferred Tax Assets

(i) Provision for bad & doubtful debts 2,369.28 1,470.77 1,380.37

(ii) Provision for Gratuity 1,674.89 1,404.75 8.31

(iii) Provision for ECL 318.86 244.83 -

(iv) Provision for LD Recovered 58.59 131.02 128.27

(v) Provision for Claims Recoverable 98.16 47.86 47.40

(vi) Provision for Doubtful Advances to Suppliers 126.42 126.42 125.21

(vii) Provision for Doubtful Deposit with Others 57.75 55.82 29.98

(viii) Provision for EMD/SD 1,629.78 1,621.23 252.02

(ix) Provision for Misc. Deductions 943.85 1,044.26 1,081.75

(x) Provision for Disputed Cases 99.63 99.63 98.67

(xi) Provision for Service Tax Receivable 557.99 318.79 208.42

(xii) Provision for Stagnant Jobs 743.40 1,525.02 2,220.30

(xiii) Provision for Output VAT Receivable 155.49 154.13 145.67

(xiv) Provision for Doubtful GST Receivable 6.60 - -

(xv) Prov. for Doubtful STDS Certificate Recv. 5.79 5.79 5.73

(xvi) Provision for Bonus 3.96 3.73 3.66

(xvii) Prov. for dimunition in the value of Investment

174.72 174.72 -

(xviii) Provision for expenses on R&D - 9,025.16 - 8,428.77 138.43 5,874.19

(b) Deferred Tax Liability

(i) Diff. between book and tax depreciation 635.27 668.75 703.27

(ii) Sales Tax Paid 149.77 785.04 141.00 809.75 139.65 842.92

NET DEFERRED TAX ASSET / (LIABILITY) (a) - (b) 8,240.12 7,619.02 5,031.27

98

MECON

NOTE 11 - OTHER NON-CURRENT ASSETS

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Capital Advances - - -

(b) Advances other than Capital Advances

(i) Security Deposits - - -

(ii) Advances to related parties - - -

(iii) Other Advances

- Advance to Suppliers and Sub-Contractors

Considered Good - Secured # 1,695.63 762.34 763.38

Considered Good - Unsecured - - -

Considered Doubtful 361.73 361.73 361.73

2,057.36 1,124.07 1,125.11

Less : Provision for doubtful advance to Suppliers and Sub-Contractors 361.73 1,695.63 361.73 762.34 361.73 763.38

- Advance to Others $ 106.08 104.69 105.60

- Prepaid Expenses $ 1.55 1.59 0.34

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

— – 138.97

- Payment against Sales Tax / VAT $ 10.00 10.00 10.00

(c) Others

- Liquidated Damages Recovered by Clients

Considered Good - Unsecured 235.16 - -

Considered Doubtful 161.18 253.96 249.67

396.34 253.96 249.67

Less : Provision for doubtful liquidated damages recovered 161.18 235.16 253.96 - 249.67 -

- EMD, SD, PBG and Advance Amount in dispute

Considered Good - Unsecured - - -

Considered Doubtful 4,612.06 4,612.06 700.76

4,612.06 4,612.06 700.76

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

TOTAL 2,048.42 878.62 1,018.29

$ considered good - Unsecured

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

99

MECON

MECON Limited

NOTE 12 - INVENTORIES (₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Stores and Spares 89.00 104.84 98.47

(b) Printing and Stationery 33.49 27.41 34.82

(c) Computer Consumables 23.42 16.22 19.92

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

TOTAL 145.91 148.47 153.21

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

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

a) Considered Good - Secured - - -

b) Considered Good - Unsecured 29,486.34 26,671.75 17,862.72

c) Significant increase in Credit Risk 681.80 559.61 400.29

d) Credit Impaired - - -

30,168.14 27,231.36 18,263.01

Less : Provision for Bad and Doubtful Trade Receivables / Expected Credit Loss

681.80 559.61 400.29

TOTAL 29,486.34 26,671.75 17,862.72

NOTE 14 - CASH AND CASH EQUIVALENTS

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

i) Cash at Bank (Current & Flexi Deposit A/cs) 724.61 2,882.19 216.21 ii) Cheques & Drafts on hand — - -iii) Cash & Stamps on hand 5.56 8.82 16.89

TOTAL 730.17 2,891.01 233.10

NOTE 15 - OTHER BANK BALANCES

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

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

52,210.59 47,351.00 54,810.00

(b) Interest accrued but not due on Fixed Deposits 1,201.53 734.67 1,172.94

TOTAL 53,412.12 48,085.67 55,982.94

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

i) CSR and SD Expenditure 527.11 456.07 498.39

ii) Research & Development Expenditure 162.58 135.46 135.46

iii) Corporate Sports Expenditure 60.00 - -

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

9,201.00 12,051.00 7,250.00

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

— — 6,500.00

100

MECON

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

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Security Deposits

Deposit with Others

Considered Good - Secured - - -

Considered Good - Unsecured 146.75 188.31 174.05

Significant increase in Credit Risk

- - -

Credit Impaired 0.84 0.84 0.84

147.59 189.15 174.89

Less : Provision for Doubtful Deposit with Others 0.84 146.75 0.84 188.31 0.84 174.05

(b) Loans to Related Parties - - -

(c) Others

(i) Advance to Employees

Considered Good - Secured ## 0.02 0.02 0.02

Considered Good - Unsecured 273.09 315.07 234.04

Significant increase in Credit Risk - - -

Credit Impaired - 273.11 - 315.09 - 234.06

(ii) Interest Receivable on Advance to Employees ##

2.30 1.07 2.51

(iii) Claims Recoverable

Considered Good - Secured - - -

Considered Good - Unsecured 335.93 249.21 156.34

Significant increase in Credit Risk - - -

Credit Impaired 20.61 20.61 20.61

356.54 269.82 176.95

Less : Provision for Doubtful Claims Recoverable 20.61 335.93 20.61 249.21 20.61 156.34

TOTAL 758.09 753.68 566.96

## Secured against buildings and vehicles

101

MECON

MECON Limited

NOTE 17 - OTHER FINANCIAL ASSETS (CURRENT)

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Jobs-in-Progress for Consultancy Services

10,001.27 707.90 629.50

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

Less : Provision for Stagnant Jobs-in-Progress 2,127.40 7,873.87 13.71 694.19 13.71 615.79

(b) Other Receivables 279.49 642.07 848.07

TOTAL 8,153.36 1,336.26 1,463.86

NOTE 18 - CURRENT TAX ASSETS (NET)

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

Payment against Income Taxes (Net) 9,706.90 7,727.66 8,545.51

CURRENT TAX ASSETS / (LIABILITIES) 9,706.90 7,727.66 8,545.51

NOTE 19 - OTHER CURRENT ASSETS

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Advances other than capital advances

(i) Security Deposits - - -

(ii) Advances to related parties - - -

(iii) Other Advances

- Advances to Contractors $ 9.28 14.57 9.12

- Advance to Suppliers and Sub-Contractors

Considered Good - Secured # 792.83 790.54 772.12

Considered Good - Unsecured 69.12 65.35 27.66

Considered Doubtful 0.06 0.06 0.06

862.01 855.95 799.84

Less : Provision for doubtful advance to Suppliers and Sub-Contractors 0.06 861.95 0.06 855.89 0.06 799.78

- Advance to Others & Canteen $ 32.19 161.27 18.80

- Prepaid Expenses $ 49.10 17.56 14.03

$ Considered good - Unsecured

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

102

MECON

NOTE 19 - OTHER CURRENT ASSETS (Contd.)

(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

- Payment against Sales Tax / VAT (Net) $

1,104.73 1,223.07 1,106.10

- VAT Credit Receivable (INPUT) $ 4.57 4.57 39.47

- OUTPUT VAT Receivable

Considered Good - Unsecured 43.55 43.55 23.40

Considered Doubtful 19.96 19.96 19.96

63.51 63.51 43.36

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

- VAT / CST Receivable

Considered Good - Unsecured - 9.47 93.72

Considered Doubtful 425.01 421.13 400.94

425.01 430.60 494.66

Less : Provision for VAT Receivable 425.01 - 421.13 9.47 400.94 93.72

- Service Tax Receivable

Considered Good - Unsecured 126.94 1,094.54 2,869.89

Considered Doubtful 1,596.80 912.29 602.22

1,723.74 2,006.83 3,472.11

Less : Provision for Service Tax Receivable 1,596.80 126.94 912.29 1,094.54 602.22 2,869.89

- GST Receivable

Considered Good - Unsecured 6,037.06 4,208.81 - - -

Considered Doubtful 18.90 - -

6,055.96 4,208.81 -

Less : Provision for GST Receivable 18.90 6,037.06 - 4,208.81 - -

(b) Others

- Liquidated Damages Recovered by Clients

Considered Good - Unsecured - - -

Considered Doubtful 6.49 121.00 121.00

6.49 121.00 121.00

Less : Provision for doubtful liquidated damages recovered

6.49 - 121.00 - 121.00 -

TOTAL 8,269.37 7,633.30 4,974.31

$ Considered good - Unsecured

103

MECON

MECON Limited

NOTE 20 : EQUITY SHARE CAPITAL

(₹ in lakhs)

AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

AUTHORISED#

Equity Shares

4,10,00,000 (Previous year 4,10,00,000) Equity Shares of ` 10/- each

4,100.00 4,100.00 4,100.00

4,100.00 4,100.00 4,100.00

ISSUED, SUBSCRIBED AND FULLY PAID UP

Equity Shares

4,01,38,360 ( Previous year 4,01,38,360) Equity Shares of ` 10/- each with voting rights.

4,013.84 4,013.84 4,013.84

a) 4,01,38,120 equity shares are held as fully paid-up by the President of India.

b) 120 equity shares are held as fully paid-up by the Govt. Director of the company.

c) 120 equity shares are held as fully paid-up by the Chairman and Managing Director of the company.

Out of the total shares,

¾ 20,14,800 equity shares are allotted as fully paid-up for consideration other than cash, pursuant to the Government of India, Ministry of Steel & Mines letter No. 6(100)/78-SAIL(1) dated 15th May, 1979 as consideration for net book value of immovable assets of M/s Hindustan Steel Limited at Ranchi transferred to the Company.

¾ 4,03,060 equity shares are allotted as fully paid-up Bonus Shares during 1996-97

¾ 77,20,000 equity shares are allotted as fully paid-up against conversion of Govt. of India Loan and Interest on Loan vide Government of India, Ministry of Steel Order No.4(46)/2004-HSM dated 30th March,2007

TOTAL : 4,013.84 4,013.84 4,013.84

#TheAuthorised ShareCapital of theCompany is ₹104,00,00,000/- (PreviousYear ₹104,00,00,000/-) dividedinto4,10,00,000(PreviousYear4,10,00,000)EquitySharesof₹10/- (PreviousYear₹10/-)eachand6,30,00,000(Previousyear6,30,00,000)5%Non-CumulativeRedeemablePreferenceSharesof ₹10/- (PreviousYear₹10/-)each.AuthorisedShareCapitalof5%Non-CumulativeRedeemablePreferenceSharesisnotconsideredaboveinaccordancewiththerequirementofIndAS.

RECONCILIATION OF THE NUMBER OF SHARES OUTSTANDINGAS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

Equity Shares

Number of Shares Outstanding at the beginning 40,138,360 40,138,360 40,138,360

Number of Shares Issued during the period - - -

Number of Shares Bought Back during the period - - -

Number of Shares Outstanding at the end 40,138,360 40,138,360 40,138,360

104

MECON

NOTE 21 : OTHER EQUITY(₹ in lakhs)

AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

A. RESERVES AND SURPLUS

Capital Redemption Reserve $

As per last Balance Sheet 6,300.00 6,300.00 6,300.00

CSR Activity Reserve $$

As per last Balance Sheet - 15.25 15.25

Add : Transferred from Surplus 87.96 - -

Less : Transferred to Surplus 16.92 71.04 15.25 - - 15.25

General Reserve $$$

As per last Balance Sheet 9,852.39 9,852.39 9,852.39

Add : Transferred from Surplus - 9,852.39 - 9,852.39 - 9,852.39

Retained Earnings $$$$

As per last Balance Sheet 2,660.70 (3,156.88) 4,110.44

Add/ (Less):

Adjustment due to Ind AS Implementation

13,485.57 - (108.79)

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

1,374.01 5,802.33 (7,376.11)

Add : Transferred from CSR Activity Reserve

16.92 15.25 -

Amount available for appropriation 17,537.20 2,660.70 (3,156.88)

Less : Transferred to CSR Activity Reserve 87.96 - -

Less : Dividend on Equity Shares 1,027.19 - -

Less : Dividend Distribution Tax 211.14 - -

Less : Transferred to General Reserve - 16,210.91 - 2,660.70 - (3,156.88)

B. OTHER COMPREHENSIVE INCOME #

As per last Balance Sheet (2,242.86) (2,376.74) (2,376.74)

Add : Other Comprehensive Income from Statement of Profit and Loss (159.37) (2,402.23) 133.88 (2,242.86) - (2,376.74)

TOTAL 30,032.11 16,570.23 10,634.02

$ As per provisions of the Companies Act, the Company has created Capital Redemption Reserve on redemption of 6,30,00,000 5% Non Cumulative Redeemable Preference Shares of `10/- each out of available profits. The Capital Redemption Reserve Account shall be utilised as per provisions of the Act.

$$ As per provisions of the Companies Act, the Company has transferred / appropriated necessary CSR amount from Surplus to CSR Activity Reserve Account which is utilised by the Company for CSR Project / Activities, etc.

$$$ As per provisions of the Companies Act, the General Reserve is created out of the accumulated profits of the Company.

$$$$ Retained Earnings represent the amount of accumulated earnings of the Company after considering Dividend including Dividend Distribution Tax paid during the year, net adjustment due to CSR Activity, net cumulative impact of transition to adoption of Ind AS 115 and the profits made by the Company during the year.

# As per provisions of the Companies Act, Other Comprehensive Income represents balance arising on account of gains / losses booked on Re-measurement of Net Defined Benefit Plans.

105

MECON

MECON Limited

NOTE 22 - TRADE PAYABLES (NON-CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

Trade Payables

i) Dues to Micro & Small Enterprises (Refer Note 40.23)

1,279.31 1,256.40 1,032.15

ii) Others 5,828.73 6,249.79 6,202.25

TOTAL 7,108.04 7,506.19 7,234.40

NOTE 23 - OTHER FINANCIAL LIABILITIES (NON-CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Other Payables

(i) Sundry Creditors 172.01 172.01 568.61

(ii) Securities and Other Deposits 361.37 352.08 324.38

(iii) Deposit under Employees Family Benefit Scheme

297.31 336.39 358.70

(iv) Liability for Employees 97.76 22.85 3,713.23

TOTAL 928.45 883.33 4,964.92

NOTE 24 - PROVISIONS (NON-CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Provision for Employee Benefits

(i) Provision for Gratuity (Present Value of Defined Benefit Obligation as per actuarial valuation) 3,703.31 4,009.01 152.21

(ii) Provision for Leave Encashment (Present Value of Defined Benefit Obligation as per actuarial valuation) 11,472.26 10,162.47 9,806.72

(iii) Provision for Other Employee Defined Benefit Schemes (Present Value of Defined Benefit Obligation as per actuarial valuation) 6,631.11 6,234.93 5,802.91

(iv) Provision for Employee Defined Contribution Schemes

15,912.60

14,422.25 14,216.78

37,719.28 34,828.66 29,978.62

(b) Other Provisions

(i) Provision for Miscellaneous Deduction by Clients 2,636.70 2,936.39 3,090.42

(ii) Provision for Disputed Cases 285.12 285.12 285.12

TOTAL 40,641.10 38,050.17 33,354.16

106

MECON

NOTE 25 - OTHER NON-CURRENT LIABILITIES(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(i) Advances from Clients 1,887.11 3,779.09 3,919.97

(ii) Liquidated Damages Recovered from Parties 468.92 461.91 446.92

TOTAL 2,356.03 4,241.00 4,366.89

NOTE 26 - TRADE PAYABLES (CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

Trade Payables

(i) Dues to Micro & Small Enterprises (Refer Note 40.23)

2,549.04 2,762.35 1,479.42

(ii) Others 8,998.05 9,761.56 11,298.34

TOTAL 11,547.09 12,523.91 12,777.76

NOTE 27 - OTHER FINANCIAL LIABILITIES (CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

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

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

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

(d) Other Payables

(i) Sundry Creditors 3,254.35 3,378.07 2,002.88

(ii) Securities and other deposits 453.99 421.60 396.14

(iii) Deposit under Employees Family Benefit Scheme

46.67 71.65 44.85

(iv) Liability for Employees 4,070.04 3,754.52 3,368.98

(v) Invoice raised but not accrued (Net) 19,640.19 7,297.40 2,356.30

TOTAL 27,465.24 14,923.24 8,169.15

NOTE 28 - OTHER CURRENT LIABILITIES(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(i) Advances from Clients 7,336.82 8,268.01 9,920.12

(ii) Deposit from Clients (Deposit Works) 1,405.94 2,245.89 -

(iii) Liquidated Damages Recovered from Parties 80.24 80.23 79.17

(iv) VAT / Central Sales Tax Liability 123.76 116.44 187.32

(v) Service Tax Liability 0.41 1.11 48.34

(vi) GST Payable 1,611.04 2,071.89 -

(vii) Dividend including Dividend Tax Payable - - -

(viii) Others (including CSR / SD / R&D Fund) 704.50 660.89 658.72

TOTAL 11,262.71 13,444.46 10,893.67

107

MECON

MECON Limited

NOTE 29 - PROVISIONS (CURRENT)(₹ in lakhs)

Particulars AS AT 31.03.2019 AS AT 31.03.2018 AS AT 01.04.2017

(a) Provision for Employee Benefits

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

1,089.77 10.98 10.75

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

912.18 1,817.53 1,901.05

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

258.09

2,260.04

219.49

2,048.00

194.13

2,105.93

(b) Other Provisions

(i) Provision for Bonus 11.34 10.69 10.57

(ii) Provision for Expenses & Contractual Obligations

5,815.14 16,580.66 16,296.50

(iii) Provision for Miscellaneous Deductions by Clients

64.33 51.97 35.29

TOTAL 8,150.85 18,691.32 18,448.29

NOTE 30 - REVENUE FROM OPERATIONS(₹ in lakhs)

Particulars 2018-19 2017-18

(a) Revenue from Consultancy Services 37,612.12 35,213.36

(b) Revenue from Construction Contracts 9,405.12 9,359.26

(c) Other Operating Revenue

(i) Provision no longer required written back (Direct) 869.17 2,878.04

(ii) Others 33.95 586.42

TOTAL 47,920.36 48,037.08

NOTE 30.1 - GROSS INCOME DERIVED FROM SERVICES RENDERED[Refer Note 30(a) and Note 30(b)]

(₹ in lakhs)

Particulars 2018-19 2017-18

(a) Engineering, Technical Consultancy, Project Management Services, etc. - Domestic 37,149.74 35,184.37

(b) Engineering, Technical Consultancy, Project Management Services, etc. - Foreign 462.38 28.99

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

9,405.12 9,359.26

TOTAL 47,017.24 44,572.62

108

MECON

NOTE 31 - OTHER INCOME(₹ in lakhs)

Particulars 2018-19 2017-18

(a) Interest Income

(i) Interest from Bank (Tax deducted at Source ` 231.52 lakhs) (CPLY ` 239.17 lakhs) 3,770.76 3,563.38

(ii) Interest on Advances to Employees for Conveyance and House Building 0.06 0.07

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

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

(c) Other Non-Operating Income

(i) Profit on Sale / Disposal of Fixed Assets 5.16 0.69

(ii) Income from Township 1,154.48 1,297.33

(iii) Provision no longer required written back 2.37 5,511.99

(iv) Miscellaneous Income 185.26 240.60

TOTAL 5,119.69 10,924.95

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

Particulars 2018-19 2017-18

(a) Purchase of Equipments & Components for execution of jobs 2,985.37 4,719.64

(b) Expenses on Sub-Contractors & Others for execution of jobs 5,880.77 4,833.24

(c) Provision for Expenses & Contractual Obligations for execution of jobs 204.22 4,215.46

TOTAL (a)+(b)+(c) 9,070.36 13,768.34

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

Particulars 2018-19 2017-18

(a) Opening Jobs-in-Progress (Consultancy) 11,993.55 629.50

(b) Closing Jobs-in-Progress (Consultancy) 10,001.27 707.90

(a)-(b) 1,992.28 (78.40)

109

MECON

MECON Limited

NOTE 34 - EMPLOYEE BENEFITS EXPENSES(₹ in lakhs)

Particulars 2018-19 2017-18

(a) Salaries & Wages

- Salary and Allowances 18,530.26 17,704.58

- Leave Encashment 1,685.23 1,575.14

- Perks and Allowances 3,231.11 3,266.57

- Bonus 3.21 7.85

- Superannuation Benefits 1,795.46 1,798.33

Sub-Total 25,245.27 24,352.47

(b) Company’s Contribution to Provident and Other Fund 2,664.80 6,154.45

(c) Staff Welfare Expenses

- Education 3.90 4.77

- Medical 541.12 547.87

- Social & Cultural Activities 59.74 57.66

- Rent (Residential) 0.14 1.53

- Group Insurance Premium 10.77 16.70

- Staff Welfare (Others) 296.71 252.33

Sub-Total 912.38 880.86

TOTAL (a)+(b)+(c) 28,822.45 31,387.78

NOTE 35 - FINANCE COSTS(₹ in lakhs)

Particulars 2018-19 2017-18

(a) Interest

Interest on Loan from Banks 71.60 32.00

Sub-Total (a) 71.60 32.00

(b) Other Borrowing Costs

i) Bank Charges 17.38 39.13

ii) Bank Guarantee Commission 53.13 94.78

Sub-Total (b) 70.51 133.91

TOTAL (a) + (b) 142.11 165.91

NOTE 36 - DEPRECIATION AND AMORTISATION EXPENSES(₹ in lakhs)

Particulars 2018-19 2017-18

a) Depreciation 658.79 825.38

b) Amortisation 107.54 110.08

TOTAL (a) + (b) 766.33 935.46

110

MECON

NOTE 37 - OTHER EXPENSES(₹ in lakhs)

Particulars 2018-19 2017-18

1. Travelling Expenses 1,631.63 1,592.66

2. Foreign Deputation 183.02 336.93

3. Maintenance & Repairs to Buildings 1,127.59 1,450.32

4. Repairs (Others) 39.09 64.66

5. Stores & Spares consumed 69.91 163.76

6. Printing & Stationery consumed 95.79 99.41

7. Expenses on Computer Consumables 38.50 21.79

8. Rent (Non-residential) 416.35 362.79

9. Rates & Taxes 103.54 114.02

10. Advertisement & Publicity 130.94 90.95

11. Advertisement (Reimbursible) - 111.60

12. Payment to Auditors :

- As Statutory Auditor 3.00 3.00

- For Income Tax / GST Audit Matters 4.48 0.48

- For Quarterly Audit 1.80 1.80

- For reimbursement of expenses 2.90 12.18 2.60 7.88

13. Insurance 7.35 4.23

14. Training Expenses :

- Inland 59.14 63.80

- Foreign - 59.14 - 63.80

15. Postage,Telephones & Telegraphs 114.06 133.26

16. Computer Services 174.59 96.79

17. Power and Fuel 581.65 535.09

18. Legal & Professional Charges 175.33 93.31

19. Assets Charged to Revenue 0.93 0.44

20. Other Administrative and Misc. Expenses 1,099.17 924.68

21. Fees Withdrawn - 18.22

22. Expenses on CSR and Sustainable Development 16.92 13.56

23. Expenses on Research & Development 29.00 -

24. Expenses on Corporate Sports Fund 60.00 -

25. Loss on Sale / Disposal of Fixed Assets 0.17 2.02

26. Provisions

- Provision for Doubtful Trade Receivables / ECL 2,644.03 651.96

- Provision for Impairment in the value of Investments - 500.00

- Provision for Claims Recoverable 143.97 -

- Provision for Doubtful Deposit with Others 5.54 73.10

- Provision for Earnest Money Deposit 24.43 -

- Provision for Stagnant Jobs-in-Progress 1,114.31 -

- Provision for Stagnant Jobs - 430.39

- Provision for LD Recovered by Clients 10.78 4.66

- Provision for Service Tax Receivable 747.64 285.51

- Provision for VAT / Cess Receivable 41.70 54.70

- Provision for GST Receivable 18.90 -

- Provision for Doubtful ITDS Credit - 6.68

- Provision for Misc. Deduction by Clients 330.93 71.94

TOTAL 11,249.08 8,381.11

111

MECON

MECON Limited

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

(₹inlakhs)

Particulars 31.03.2019 31.03.2018

38.1 Contingent Liabilities

i) Claims against Company under liquidated damage clause bytheClients.

NIL NIL

ii) Incometaxindispute/underappeal 781.60 781.60

iii) SalestaxdemandspendingappealswithAppellateAuthorities. 2,197.85 2,166.68

iv) Excise Duty / Service Tax demands pending appeals withAppellateAuthorities.

230.65 NIL

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

9,990.61 7,590.64

vi) Claims against Company for electricity supply by JharkhandUrjaVikasNigamLimited(JUVNL)indispute₹2,486.07lakhs.Outofthis,₹527.14lakhsispaid/providedinaccountspendingfinaldecisionduringtheFY2015-16.

1,958.93 1,958.93

vii) The Regional Provident Fund Commissioner-II, Jharkhand,Ranchiorderedforpaymentof₹385.27lakhsbywayofinterestandpenaltytotheBOT,arisingoutofdelayedremittancesbythe company to theBOT,MECONEmployeesPFTrust.Thecompany disputed the same and filed an appeal with EPF,AppellateTribunal,NewDelhiafterdepositing₹96.32lakhsasinterimadhocadvance.

TheHon’bleHighCourt of Jharkhand, vide order dated 30th July,2012hasdirectedProvidentFundCommissioner,Ranchitodecidethequestionofdelayinpaymentanddeterminethequantumofdamageswithaviewtore-assesstheliabilityoftheCompany, setting aside all earlier orders.

RPFChasworkedoutliabilityof₹326.02lakhsvidetheirletterdated 28.08.2013. Provision of ₹3.11 lakhs has been madeduring 2013-14 based on Company’s calculation pendingfinaldecision.Outoftheabove,theRegionalProvidentFundCommissioner-I, Jharkhand, Ranchi vide their letter dated17.03.2015, demanded ₹116.86 lakhs towards interest andpenalty,arisingoutofdelayedremittancesofPFandPensionamountsfortheperiodfromApril,1971toFebruary,2001.

Writ Petition has been filed before Hon’ble Jharkhand HighCourt against the order dated 14.02.2017 passed by EPF,AppellateTribunal,NewDelhi.

322.91 322.91

viii) Interestonarrearperksandallowancesinrespectofexecutiveemployeesasdeterminedupto31.03.2019followingorderno.O.A.350/00191/2014dated15.02.2016passedby theCentralAdministrative Tribunal, Calcutta Bench, pending finaldecision.

5,238.50 4,684.16

Contd...

112

MECON

Particulars 31.03.2019 31.03.2018

ix) ArrearsPerksandAllowancesinrespectofexecutiveemployeesfortheperiod26.11.2008to20.10.2009asestimatedfollowingthe order no. O.A. 350/00191/2014 dated 15.02.2016 issuedby theCentralAdministrativeTribunal,Calcutta Bench.ThematterisindisputeandispendingbeforetheHon’bleCalcuttaHighCourtasintimatedbytheMinistryofSteel.

3,079.66 3,079.66

38.2 Commitments

Estimated amount of contracts/orders remaining to beexecuted/suppliedoncapitalaccountandnotprovidedfor

205.02 27.77

NOTE 39: PROPOSED DIVIDEND

(₹ in lakhs)

Particulars 2018-19 2017-18Proposeddividendonequityshares

Totaldividend(₹inlakhs)Dividendpershare(₹)

DividenddistributiontaxonProposeddividend

NILNILNIL

1,027.192.56

211.14

NOTE 40: ADDITIONAL INFORMATION AND OTHER DISCLOSURES(₹ in lakhs)

Particulars 2018-19 2017-18 40.1 Letters of Credit opened with Bankers for purchase of

equipment&componentsandtechnicalservices.11.42 94.51

40.2 GuaranteesgivenbyBanksforandonbehalfoftheCompanyto different clients etc.

17,504.36 16,811.08

40.3 EarningsinForeignExchangeFeesforservicesrendered. 462.38 28.99

40.4 ExpenditureinForeignCurrency(i) ProfessionalandConsultationFees(ii) Othermatters

143.27132.26 275.53

212.32197.79 410.11

40.5 ValueofImports(CalculatedonCIFbasis)(i) Equipment, components & spares parts used in

construction contract(ii) Capitalgoods

83.96

NIL 83.96

251.56

NIL 251.5640.6 (i) ExpensesonAdvertisement&Publicity

a) Advertisementb) Publicity

(ii) ExpensesonPublicRelationEstablishment

27.51103.43 130.94

38.90

52.8038.15 90.95

37.02

40.7 ExpensesonEngineering,Research&DevelopmentWing/establishment,includingcapitalassetsa) Salary&Wages,etc.b) ExpensesoutofR&DFund

106.021.88

107.90

71.32NIL

71.32

(₹inlakhs)

113

MECON

MECON Limited

40.8 PARTICULARS OF PROVISIONS

(₹ in lakhs)

PARTICULARSProvi-

sion for Bonus

Provision for Bad & Doubtful

Debts

Provision for Liq-uidated

Damages recovered by Clients

Provision for Claims Recover-

able

Provi-sion for Doubtful Earnest Money Deposit

Provi-sion for Doubtful Deposit

with Others

Provision for doubt-

ful ad-vances to suppliers/ sub-con-tractors

Provision for Miscel-

laneous Deductions by Clients

Provision for Disput-ed Cases, Stagnant

jobs, EMD, SD, etc

Opening Balance as on 01.04.2018

10.69

(10.57)

4,208.92

(3,988.60)

374.96

(370.67)

136.95

(136.95)

27.44

(27.44)

159.73

(86.64)

361.79

(361.79)

2,988.36

(3,125.71)

10,706.05

(8,509.20)

Add: Provision made during the year

6.64

(3.51)

2,870.56

(468.66)

10.78

(4.66)

143.97

(NIL)

24.43

(NIL)

5.54

(73.09)

NIL

(NIL)

330.93

(71.94)

3,149.13

(4,688.57)

Less: Provision utilised during the year

2.56

(3.39)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

56.12

(0.59)

Less: Unused provision reversed during the year

3.43

(NIL)

299.26

(248.34)

218.07

(0.37)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

NIL

(NIL)

618.26

(209.29)

4,622.51

(2,491.13)

Closing Balance as on 31.03.2019

11.34

(10.69)

6,780.22

(4,208.92)

167.67

(374.96)

280.92

(136.95)

51.87

(27.44)

165.27

(159.73)

361.79

(361.79)

2,701.03

(2,988.36)

9,176.55

(10,706.05)

Figures in bracket relates to previous year

40.9 DISCLOSURE UNDER IND AS-17 ON “LEASES”

TheCompanyhastakencertainoffices,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2018-19anamountof₹416.35lakhs(PreviousYear₹362.79lakhs)hasbeenaccountedforasrentalchargesinrespectofthesecancellableleases.

TheCompanyhasgivencertainoffice,residentialpremises,etconoperatingleasewhicharecancellablebygivingappropriatenoticesasperrespectiveagreements.DuringtheFY2018-19anamountof₹225.55lakhs(PreviousYear₹201.49lakhs)hasbeenaccountedforasrentalincomeinrespectofthesecancellableleases.

114

MECON

40.10 DISCLOSURE UNDER IND AS -19 ON “EMPLOYEE BENEFITS”

A Defined Benefit Scheme

A.1 General Description of Defined Benefit Schemes:

Gratuity : Payable on separation @ 15 days salary for each completed year ofservice or part thereof in excess of sixmonths to eligible employeeswhorendercontinuousserviceof5yearsormore.Beyond30yearsofservice,gratuityispayableattherateofonemonth’s/30dayssalaryforeachcompletedyearofserviceinexcessof30years.Themaximumlimitofgratuityis₹20.00lakhsw.e.f.29.03.2018.

Leave Encashment : Payable on separation to eligible employees who have accumulatedearnedleaveandhalfpayleave.Maximumlimitofaccumulationis300days(bothearnedleaveandhalfpayleavetakentogether). However,no commutation of HPL would be permissible for the purpose ofencashmentof300days leaveasabove.Employees inservicebecomeentitledtoen-cashaccumulatedearnedleavestandingtohis/hercreditwhentheearnedleavehasaccumulated300days,subjecttomaximumearnedleaveencashmentallowedupto30daysinacalendaryear.

Provident Fund : 12%ofBasicPay&DearnessAllowancecontributedtotheProvidentFundTrustbytheCompany.

Post Retirement Medical Benefits

: Available to the employees and his spouse after separation(Superannuation/death) at Company’s hospitals / under HealthInsurance scheme / a fixed amount of ₹2,400/- p.a. under OutdoorMedicalTreatment(ODMT)scheme,asapplicable.

Post Retirement Settlement Benefits

: Payabletoemployees/spouseonseparation(Superannuation,VoluntaryRetirement,Death,Dischargeonmedicalgroundandresignationaftertheageof57years)forsettlementuptotheirhometown.

Employees’ Family Benefit Scheme

: Monthly payments to disabled separated employees/legal heirs ofdeceasedemployeesinlieuofprescribeddeposittillthenotionaldateofsuperannuation.

Long Service Award : Payableinkindonrendering15yearsofserviceandalsoonrendering30yearsofservice.

Retirement Gift : Payableinkindonretirement.

LTC/LTA : Non-executiveregularemployeesareentitledtooneLTCandoneLTAaccordingtoratesintheeligiblegrade,inablockoffouryears.

115

MECON

MECON Limited

A.2

Rec

onci

liatio

n of

Pre

sent

Val

ue o

f Defi

ned

Ben

efi t

Obl

igat

ion

(DBO

)

(₹ in

lakh

s)

12

34

56

78

Sl.

Part

icul

ars

Grat

uity

Leav

e En

cash

men

t

Post

R

etire

men

t M

edic

al

Bene

fits

Post

R

etire

men

t Se

ttlem

ent

Bene

fits

Empl

oyee

Fa

mily

Ben

efit

Sche

me

Ret

irem

ent

Gift

Long

Ser

vice

Aw

ard

LTC/

LTA

1P.

V. o

f DBO

(Ope

ning

) 9

,127

.84

11,

980.

00

1,9

76.5

3 1

81.3

4 2

22.0

6 2

4.04

2

5.78

7

1.93

P.V.

of D

BO (

Ope

ning

)(Pr

evio

us Y

ear)

5,2

98.8

7 1

1,70

7.77

1

,483

.64

188

.30

246

.33

25.

21

20.

30

80.

52

2Cu

rren

t Ser

vice

Cos

t 2

97.4

2 7

63.1

4 —

7.9

9 —

1.5

5 4

3.44

—

Curr

ent S

ervi

ce C

ost (

Prev

ious

Yea

r) 1

54.4

0 7

89.8

7 -

1

0.79

-

1

.45

2.1

1 -

3In

tere

st C

ost

693

.71

910

.48

150

.22

13.

78

16.

88

1.8

3 1

.96

5.4

7

Inte

rest

Cos

t (Pr

evio

us Y

ear)

365

.69

785

.27

104

.90

13.

08

16.

67

1.7

5 1

.44

6.8

1

4Ac

tuar

ial L

oss/

(Gai

n) 1

85.6

0 (3

92.6

3) 3

39.7

3 (3

8.83

) 8

9.65

8

.76

(1.2

3) (5

.13)

Actu

aria

l Los

s/ (

Gai

n) (

Prev

ious

Yea

r) (

165.

95)

(38

7.70

) 4

10.7

1 (

20.9

2) 2

1.63

(

3.82

) 1

.98

10.

20

5Pr

emiu

m P

aid

(21.

78)

——

——

——

—

Prem

ium

Pai

d (P

revi

ous

Year

) (

7.84

) -

-

-

-

-

-

-

6Pa

st S

ervi

ce C

ost

——

——

——

——

Past

Ser

vice

Cos

t (Pr

evio

us Y

ear)

4,0

53.8

5 -

7

0.21

-

-

-

-

-

7Be

nefit

Pai

d (8

57.2

5) (8

76.5

5) (1

14.6

9) (7

.86)

(62.

01)

(0.7

2) (6

.45)

(9.5

6)

Bene

fit P

aid

(Pre

viou

s Ye

ar)

(57

1.18

) (

915.

21)

(92

.93)

(9.

91)

(62

.57)

(0.

55)

(0.

05)

(25

.60)

8P.

V. o

f DBO

(Clo

sing

) 9

,425

.54

12,

384.

44

2,3

51.7

9 1

56.4

2 2

66.5

8 3

5.46

6

3.50

6

2.71

P.V.

of D

BO (

Clos

ing)

(Pr

evio

us Y

ear)

9,1

27.8

4 1

1,98

0.00

1

,976

.53

181

.34

222

.06

24.

04

25.

78

71.

93

116

MECON

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

TheCompanyhaswholly/partly funded thegratuity liability througha separateGratuityFund.The fairvalueoftheplanassetsismainlybasedontheinformationgivenbyLICthroughwhomtheinvestmentshavebeenmadebytheFund.InvestmentsofthefundisalsomadeinflexidepositaccountwithBanks.ThereconciliationofFairValueofPlanAssetsoftheGratuityFundandDefinedBenefitGratuityobligationsareasunder:

(₹ in lakhs)

Sl. Particulars As on 31.03.2019 As on 31.03.2018

1 F.V of Plan Assets (Opening) 5,107.85 5,274.88

2 InterestIncome 349.21 376.73

3 BenefitPayment (845.94) (552.21)

4 Contributions made 21.34 8.45

5 Actuarial(Loss)/Gain - -

6 F.V. of Plan Assets (Closing) 4,632.46 5,107.85

7 P.V.ofD.B.O.(Closing) 9,425.54 9,127.84

Net liability / (assets) recognised in the Balance Sheet 4,793.08 4,019.99

The Company expects to contribute the amount to the Gratuity Fund during the Year 2019-20 afterconsideringliabilityandfundposition.

A.4 Provident Fund

Company’s contribution paid/payable during the year to the Provident Fund Trust are recognised inthe StatementofProfit&Loss. TheCompany’sProvidentFundTrust is exemptedunder section17ofEmployees’ProvidentFundandMiscellaneousProvisionsAct,1952.Theconditionsforgrantofexemptionsstipulatethattheemployershallmakegooddeficiency,ifany,intheinterestratedeclaredbytheTrustsvis-a-visstatutoryrate.TheCompanyhasalreadymadeadequateprovisionsintheaccountsbasedonactuarialvaluationofProvidentFund.

Thedefinedbenefitobligations,otherthanGratuityandProvidentfund,areunfunded.

117

MECON

MECON Limited

A.5

Exp

ense

s rec

ogni

sed

in S

tate

men

t of P

rofi t

& L

oss

(₹ in

lakh

s)

Sl.

Part

icul

ars

12

34

56

78

Grat

uity

Leav

e En

cash

men

t

Post

R

etire

men

t M

edic

al

Bene

fits

Post

R

etire

men

t Se

ttlem

ent

Bene

fits

Empl

oyee

Fa

mily

Be

nefit

Sc

hem

e

Ret

irem

ent

Gift

Long

Se

rvic

e Aw

ard

LTC/

LTA

1Cu

rren

t Ser

vice

Cos

t 2

97.4

2 7

63.1

4 —

7.9

9 —

1.5

5 4

3.44

—

Curr

ent S

ervi

ce C

ost (

Prev

ious

Yea

r) 1

54.4

0 7

89.8

7 -

1

0.79

-

1

.45

2.1

1 -

2Pa

st S

ervi

ce C

ost

——

——

——

——

Past

Ser

vice

Cos

t (Pr

evio

us Y

ear)

4,0

53.8

5 -

7

0.21

-

-

-

-

-

3In

tere

st C

ost

693

.71

910

.48

150

.22

13.

78

16.

88

1.8

3 1

.96

5.4

7

Inte

rest

Cos

t (Pr

evio

us Y

ear)

365

.69

785

.27

104

.90

13.

08

16.

67

1.7

5 1

.44

6.8

1

4In

tere

st In

com

e on

Pla

n As

sets

(388

.20)

——

——

——

—

Inte

rest

Inco

me

on P

lan

Asse

ts (

Prev

ious

Yea

r) (

384.

57)

-

-

-

-

-

-

-

Expe

nses

Rec

ogni

sed

in s

tate

men

t of P

rofit

and

Los

s 6

02.9

3 1

,673

.62

150

.22

21.

77

16.

88

3.3

8 4

5.40

5

.47

Expe

nses

Rec

ogni

sed

in s

tate

men

t of P

rofit

and

Los

s (P

revi

ous

Year

) 4

,189

.37

1,5

75.1

4 1

75.1

1 2

3.87

1

6.67

3

.20

3.5

5 6

.81

A.6

Exp

ense

s rec

ogni

sed

in O

ther

Com

preh

ensi

ve In

com

e (₹

in la

khs)

Sl.

Part

icul

ars

12

34

56

78

Grat

uity

Leav

e En

cash

men

t

Post

R

etire

men

t M

edic

al

Bene

fits

Post

R

etire

men

t Se

ttlem

ent

Bene

fits

Empl

oyee

Fa

mily

Be

nefit

Sc

hem

e

Ret

irem

ent

Gift

Long

Se

rvic

e Aw

ard

LTC/

LTA

1R

e-re

mea

sure

men

ts d

ue to

cha

nges

in fi

nanc

ial a

ssum

ptio

ns

(37.

60)

(59.

96)

(11.

76)

(0.5

5)—

(0.1

2) (0

.25)

—

Re-

rem

easu

rem

ents

du

e to

ch

ange

s in

fin

anci

al

assu

mpt

ions

(P

revi

ous

Year

) (

124.

55)

(30

3.07

) -

(

3.00

) -

(

0.64

) 4

.29

-

2R

e-re

mea

sure

men

ts d

ue to

cha

nges

in e

xper

ienc

e ad

just

men

ts 2

23.2

0 (3

32.6

7) 3

51.4

9 (3

8.28

) 8

9.65

8

.88

(0.9

8) (5

.13)

Re-

rem

easu

rem

ents

du

e to

ch

ange

s in

ex

perie

nce

adju

stm

ents

(P

revi

ous

Year

) (

41.4

0) (

84.6

3) 4

10.7

1 (

17.9

2) 2

1.63

(

3.18

) (

2.32

) 1

0.20

3R

etur

n on

Pla

n As

sets

(exc

ludi

ng In

tere

st In

com

e)—

——

——

——

—

Ret

urn

on P

lan

Asse

ts (

excl

udin

g In

tere

st In

com

e) (

Prev

ious

Yea

r) -

-

-

-

-

-

-

-

Expe

nses

reco

gnis

ed in

Oth

er C

ompr

ehen

sive

Inco

me

185

.60

(392

.63)

339

.73

(38.

83)

89.

65

8.7

6 (1

.23)

(5.1

3)

Expe

nses

reco

gnis

ed in

Oth

er C

ompr

ehen

sive

Inco

me

(Pre

viou

s Ye

ar)

(16

5.95

) (

387.

70)

410

.71

(20

.92)

21.

63

(3.

82)

1.9

7 1

0.20

118

MECON

A.7 Actuarial Assumptions

2018-19 2017-18 1 DiscountRate(perannum) 7.65% 7.60%2 MortalityRate Indian Assured Lives Mortality

(2006-08)UltimateIndian Assured Lives Mortality(2006-08)Ultimate

3 WithdrawalRate (perannum)

0.10% to0.50%dependingonagegroup.10%flatatallagegroupsforContract Employees

0.10%to0.50%dependingonagegroup. 10%flat at all age groupsforContractEmployees

4 MedicalInflationRate (perannum)

12%forfirst5yearsandthereafter8%

12%forfirst5yearsandthereafter8%

5 RateofreturnonPlanAssets(perannum)

7.29%-7.80% 7.4%-7.65%

6 SalaryEscalation (perannum)

16%onBasicPay 16%onBasicPay

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

A.8 Financial Assumptions Sensitivity Analysis

(₹ in lakhs)

Sl. No. Particulars

0.5 %age decrease in Discount

Rate

0.5 %age increase in Discount

Rate

0.5 %age decrease in Salary Rate

0.5 %age increase in Salary Rate

1 Gratuity 9,770.18 9,105.67 9,379.42 9,456.09

2 LeaveEncashment 13,008.29 11,812.33 11,806.42 13,009.21

3 PostRetirementSettlementBenefits 162.16 150.85 150.81 162.17

4 EmployeeFamilyBenefitScheme 270.40 262.93 - -

5 RetirementGift 36.58 34.37 - -

6 LongServiceAward 66.03 61.01 - -

7 LTC/LTA 63.91 61.55 - -

A.9 Effect of one percentage point change in the assumed inflation rate in case of valuation of benefits under post-retirement medical benefits scheme:

(₹ in lakhs)

Sl. No. Particulars

One percentage point increase in medical

inflation rate

One percentage point decrease in medical

inflation rate

1 Increase/(decrease) on aggregate servicecost and interest cost of post retirementmedicalbenefits

16.76 (14.50)

2 Increase/(decrease)onpresentvalueofpostretirement benefit obligations as at 31st,March,2019

259.82 (246.54)

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A.10 Expected Cash Flows for the following years

(₹ in lakhs)

Period Gratuity Leave EncashmentYear1 1,089.77 912.18Year2 1,201.00 928.16Year3 1,092.85 1,035.04Year4 1,083.75 1,227.30Year5 938.79 1,544.55Year6 968.81 1,685.04Next6years 3,050.58 5,052.17

B Defined Contribution Scheme

B.1 Post Retirement Pension Benefits

i) 10% of Basic Pay&DearnessAllowance for executives to be contributed by theCompanyw.e.f.01.01.2007.

ii) 6%ofBasicPay&DearnessAllowancefornon-executivestobecontributedbytheCompanyw.e.f.01.01.2012.

B.2 Expenses recognised in Statement of Profit & Loss for the year

(₹ in lakhs)

Particulars Post Retirement Pension Benefits

2018-19 2017-18

ExpenseschargedtoStatementofProfitandLoss 1,623.47 1,599.35

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

i) Related Parties and their relationships:

Name of the Related Party Nature of RelationshipM/s.Metallurgical&EngineeringConsultants(Nigeria)Limited JointVentureCompanyBoard of Trustees,MECON Employees’ Provident Fund andGratuityFund

PostEmploymentBenefitPlans

Key Management PersonnelShriAtulBhatt ChairmanandManagingDirectorShriP.K.Sarangi Director(Technical)ShriGoutamChatterjee Director(Commercial)ShriSalilKumar Director(Projects)ShriR.H.Juneja(w.e.f.20.04.2018) Director(Finance)ShriSaraswatiPrasad,IAS GovernmentDirectorShriT.Srinivas(from24.05.2018to16.07.2018) GovernmentDirectorShriSunilBarthwal,IAS(upto24.05.2018) GovernmentDirectorSmtRasikaChaube(w.e.f.16.07.2018) GovernmentDirectorShriSisirKumarAppikatla IndependentDirectorShriDeepakKrishan(w.e.f.23.01.2019) IndependentDirector

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

(₹ in lakhs)

Sl.No. Name of the related party M/s.Metallurgical & Engineering Consultants (Nigeria) Limited

Particulars 2018-19 2017-18

1. Transactionduringtheperiod NIL NIL

2. OutstandingBalancesasattheendoftheperiod NIL NIL

Sl. No. Name of the related party Board of Trustees, MECON Employees’ Provident Fund and Gratuity Fund

Particulars 2018-19 2017-18

1. Transactionduringtheperiod 1,877.88 1,768.88

2. OutstandingBalancesasattheendoftheperiod NIL NIL

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

(₹ in lakhs)

Sl. No. Particulars 2018-19 2017-18

1. Short-TermEmployeeBenefits 139.95 114.18

2. PostEmploymentBenefits 86.97 53.76

3. OtherLong-TermBenefits 85.12 33.38

4. TerminationBenefits — –

5. Share-basedPayment — –

6. Sittingfees 1.50 1.00

7. OutstandingBalancesasattheendoftheperiod NIL NIL

Short-TermEmployeeBenefitsexcludesmedicalfacilitiesprovidedatCompany’shospital,monetaryvalueofwhichisnotascertainable.

iv) Government-related Entities

The Company is a wholly owned Government of India, Central Public Sector Enterprise under theadministrative control ofMinistry of Steel. The company applies exemption from detailed disclosuresrequiredunderIndAS-24withrespecttorelatedpartytransactionsandoutstandingbalances, includingcommitments,withGovernment andGovernment relatedEntities.The significant transactions arewithotherCentralPublicSectorEnterpriseswhichareundercontrolofGovernmentofIndia.Thetransactionswithsuchentitiesarenormal,basedonmarketdrivenratesatarmslengthprice.

a) Name of Government-related entities and description of relationship wherein significant amount of transaction carried out :

Sl. No. Government-related Entities Relationship

1. AirportsAuthorityofIndia CentralPublicSectorEnterprise2. BharatElectronicsLimited CentralPublicSectorEnterprise3. BharatPetroleumCorporationLimited CentralPublicSectorEnterprise4. BharatSancharNigamLimited CentralPublicSectorEnterprise

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MECON Limited

Sl. No. Government-related Entities Relationship

5. CentralCoalfieldsLimited CentralPublicSectorEnterprise6. GAIL(India)Limited CentralPublicSectorEnterprise7. HindustanCopperLimited CentralPublicSectorEnterprise8. HindustanPetroleumCorporationLimited CentralPublicSectorEnterprise9. IndianOilCorporationLimited CentralPublicSectorEnterprise10. KIOCLLimited CentralPublicSectorEnterprise11. MangaloreRefinery&PetrochemicalsLimited CentralPublicSectorEnterprise12. NationalAluminiumCompanyLimited CentralPublicSectorEnterprise13. NLCIndiaLimited CentralPublicSectorEnterprise14. NMDCLimited CentralPublicSectorEnterprise15. OilIndiaLimited CentralPublicSectorEnterprise16. Oil&NaturalGasCorporationLimited CentralPublicSectorEnterprise17. RashtriyaIspatNigamLimited CentralPublicSectorEnterprise18. SteelAuthorityofIndiaLimited CentralPublicSectorEnterprise19. UraniumCorporationofIndiaLimited CentralPublicSectorEnterprise

b) Transactions with Government-related Entities :(₹ in lakhs)

Sl. No. Name of the Entity Nature of

Transaction 2018-19 2017-18

Rendering of Services:

1. BharatElectronicsLimited Revenue 833.39 602.32

2. BharatPetroleumCorporationLimited Revenue 455.38 260.01

3. GAIL(India)Limited Revenue 9,554.66 10,603.52

4. GAIL(India)Limited EstateIncome 125.21 78.97

5. HindustanCopperLimited Revenue 69.06 47.00

6. HindustanPetroleumCorporationLimited Revenue 716.64 402.69

7. IndianOilCorporationLimited Revenue 195.59 146.24

8. KIOCLLimited Revenue 146.10 51.95

9. MangaloreRefinery&PetrochemicalsLimited Revenue 326.35 287.70

10. NationalAluminiumCompanyLimited Revenue 161.35 79.60

11. NMDCLimited Revenue 5,272.69 3,590.77

12. Oil&NaturalGasCorporationLimited Revenue 50.47 95.47

13. OilIndiaLimited Revenue 232.91 –

14. RashtriyaIspatNigamLimited Revenue 1,765.18 2,006.63

15. SteelAuthorityofIndiaLimited Revenue 8,664.69 12,865.61

16. SteelAuthorityofIndiaLimited SharingofCommonExpenses

1,090.00 1,090.00

17. UraniumCorporationofIndiaLimited Revenue 66.43 199.66

18. Others Revenue/Others 104.78 782.74

Contd...

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Sl. No. Name of the Entity Nature of

Transaction 2018-19 2017-18

Receiving of Services:1. BharatSancharNigamLimited Telephone / Internet

Charges54.44 70.85

2. Others Telephone / Internet/Consulting/EstateCharges,etc.

224.77 100.90

Amount Receivable:1. BharatElectronicsLimited TradeReceivable 270.64 481.172. BharatPetroleumCorporationLimited TradeReceivable 340.87 95.403. CentralCoalfieldsLimited TradeReceivable 142.50 318.214. GAIL(India)Limited TradeReceivable 7,183.21 4,262.175. HindustanPetroleumCorporationLimited TradeReceivable 464.58 229.316. IndianOilCorporationLimited DepositsReceivable 67.48 67.487. IndianOilCorporationLimited TradeReceivable 134.89 96.508. MangaloreRefinery&PetrochemicalsLimited TradeReceivable 121.75 134.789. NationalAluminiumCompanyLimited TradeReceivable 153.32 169.7410. NMDCLimited TradeReceivable 1,956.41 1,443.4311. NLCIndiaLimited TradeReceivable 592.82 662.1612. OilIndiaLimited TradeReceivable 58.90 –13. Oil&NaturalGasCorporationLimited TradeReceivable 182.69 64.0414. RashtriyaIspatNigamLimited TradeReceivable 3,854.73 4,589.2815. SteelAuthorityofIndiaLimited TradeReceivable 19,258.60 15,861.2616. Others Trade Receivable /

DepositsReceivable370.28 354.30

The above transactions with the Government-related Entities cover transactions that are significantindividually. TheCompany has also entered into transactions, with other variousGovernment-relatedEntities,whichareinsignificant,individuallyandhencenotdisclosedindividually.

40.12 DISCLOSURE UNDER IND AS-28 ON “INVESTMENTS IN ASSOCIATES AND JOINT VENTURES”

AsperIndAS-28“InvestmentsinAssociatesandJointVentures”,theCompany’sshareofownershipinterest,assets, liabilities, income, expenses, contingent liabilities and capital commitments in the joint venturecompany,incorporatedinNigeria,aregivenbelow:

(₹ in lakhs)

Name of the Joint Venture Company

% of Company’s Ownership

Interest

Assets Liabili-ties Income Expendi-

ture

Contin-gent

Liabilities

Capital Commit-

ments

Metallurgical&EngineeringConsultants (Nigeria)Limited

50

(50)

3.41

(27.60)

313.36

(335.47)

11.76

(15.15)

46.14

(55.48)

NIL

(NIL)

NIL

(NIL)

Figuresinbracketrelatestopreviousyear

(₹ in lakhs)

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TheabovefiguresarebasedontheauditedaccountsofMetallurgical&EngineeringConsultants(Nigeria)Ltd. for the year ending 31.12.2014. Reporting currency of Metallurgical & Engineering Consultants(Nigeria)Ltd.isNaira.

AssetsandLiabilitiesarereportedusingtheclosingrateofexchangeason31.12.2014whereasIncomeandExpenditurearereportedusingtheaverageexchangerateinforceduringtheyear2014asavailable.

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

CalculationofEarningsperShare:

Sl. No. Particulars 2018-19 2017-18

a) Net Profit / (Loss) for the period attributable to EquityShareholders(₹inlakhs)

1,374.01 5,802.33

b) WeightedaveragenumberofEquityShares(Refer Note 20) 4,01,38,360 4,01,38,360

c) EarningsPerShare(BasicandDiluted)(a)/(b)(in₹) 3.42 14.46

d) FaceValuepershare(in₹) 10.00 10.00

40.14 DISCLOSURE AS PER IND AS-108 ON “OPERATING SEGMENTS”

A. General Information

i) TheCompany has identified three “Strategic Business Units” (SBUs) as “Operating Segments”. These“OperatingSegments” are reportedbasedonnatureof servicesofferedby these segments, technology /marketingstrategiesofthebusinesses,organizationstructure&themanagementreportingsystem.

Operating Segment Composition:

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

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

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

ii) TheSBUs aremonitoredby theBoardofDirectors,who is collectively theCompany’sChiefOperatingDecisionMaker(CODM)andstrategicdecisionsaboutperformanceassessmentaremadeonthebasisofSegmentOperatingResults.

iii) Segment Revenue comprises Revenue from Engineering & Consultancy Services and Revenue fromConstructionContractsfortheJobsinIndiaandabroad.

iv) UnallocatedcorporateexpenditureincludesexpensesincurredoncorporateservicesprovidedtoOperatingSegmentsandotherexpensesnotallocableonareasonablebasistoOperatingSegments.

v) Segment Assets and Segment Liabilities representoperatingassetsandliabilitiesrespectivelywhicharedirectlyattributabletothesegmentorallocatedtothesegmentonareasonablebasis.

vi) Property,Plant&EquipmentandIntangibleAssetsusedintheCompany’sbusinessarecommoninnatureforallbyand largeand thereforearenotdirectlyattributable to the segmentor canbeallocated to thesegmentonareasonablebasis.However,depreciation,amortizationandimpairmentexpenses,ifany,areallocatedtosegmentbasedonmanhoursconsumed.

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B. Information / Reconciliation of Reportable Segment Profit or Loss, Assets and Liabilities

(₹ in lakhs)

SEGMENTS METALS ENERGY INFRASTRUCTURE TOTAL

ParticularsCurrent

YearPrevious

YearCurrent

YearPrevious

YearCurrent

YearPrevious

YearCurrent

YearPrevious

Year

I. SEGMENT REVENUE

a. Segment Revenue from External Customers

20,785.76 20,070.35 17,582.32 17,664.00 8,649.16 6,838.27 47,017.24 44,572.62

b. "Intersegment Revenues"

- - - - - - - -

c. Other Operating Revenue

707.38 2,321.71 151.14 30.02 44.60 1,112.73 903.12 3,464.46

REVENUE FROM OPERATIONS

21,493.14 22,392.06 17,733.46 17,694.02 8,693.76 7,951.00 47,920.36 48,037.08

a. Unallocated Interest and Other Income

- - - - - - 5,119.69 10,924.95

II. TOTAL INCOME 21,493.14 22,392.06 17,733.46 17,694.02 8,693.76 7,951.00 53,040.05 58,962.03

III. SEGMENT RESULTS [Profit/(Loss)]

(1,712.71) (7,819.33) 2,245.67 2,197.88 (2,520.65) (812.14) (1,987.69) (6,433.59)

a. Interest Income - - - - - - 3,770.82 3,872.74

b. Non Operating Income

- - - - - - 1,348.87 7,052.21

c. Finance Costs - - - - - - 142.11 165.91

d. Non Operating Loss - - - - - - 0.17 2.02

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

- - - - - - (1,992.28) 78.40

IV. PROFIT/(LOSS) BEFORE TAX

- - - - - - 997.44 4,401.83

Income Taxes - - - - - - (376.57) (1,400.50)

V. PROFIT/(LOSS) AFTER TAX

- - - - - - 1,374.01 5,802.33

VI. OTHER INFORMATION

a. Segment Assets 45,175.12 39,012.57 17,199.15 15,001.91 9,465.97 9,048.66 71,840.24 63,063.14

b. Unallocated Corporate Assets

- - - - - - 71,665.22 67,784.55

c. Total Assets - - - - - - 143,505.46 130,847.69

d. Segment Liabilities 49,906.07 56,516.20 8,768.36 9,238.22 11,646.95 12,176.31 70,321.38 77,930.73

e. Unallocated Corporate Liabilities

- - - - - - 39,138.13 32,332.89

f. Total Liabilities - - - - - - 109,459.51 110,263.62

g. Depreciation & Amortisation

391.53 497.78 247.76 308.24 127.04 129.44 766.33 935.46

h. Non-Cash Expenses other than Depreciation

748.65 1,303.71 2,515.32 83.69 456.77 196.13 3,720.74 1,583.53

i Capital Employed - - - - - - 25,696.12 12,940.91

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C. Information about geographical areas

Disclosure of Information on Geographical Segment is not made considering the nature of businessactivities/operationsbeingcarriedoutbytheCompanymainlywithinthecountryandthereforethereisnoreportablegeographicalsegment.

D. Information about major customers

Duringtheyearended31stMarch,2019,₹13,393.36lakhs(PreviousYear₹11,507.83lakhs)ofCompany’srevenues,eachexceeding10%inthe“Metals”Segment,arederivedfrom2(two)(PreviousYear1(one))external customers.

Duringtheyearended31stMarch,2019,₹9,554.66 lakhs(PreviousYear₹10,568.48 lakhs)ofCompany’srevenues,eachexceeding10%inthe“Energy”Segment,arederivedfrom1(one)(PreviousYear1(one))external customers.

Duringtheyearended31stMarch,2019,₹NIL(PreviousYear₹NIL)ofCompany’srevenues,eachexceeding10%inthe“Infrastructure”Segment,arederivedfromexternalcustomers.

40.15 DISCLOSURE AS PER IND AS-115 “REVENUE FROM CONTRACTS WITH CUSTOMERS”

a) Disaggregationof revenue intooperatingsegmentsandgeographicalareas for theyearended31st March,2019ispresentedbelow:-

(₹ in lakhs)

SegmentRevenue as per Ind AS 115 Other

Operating Revenue

Total as per Profit & Loss / Segment

ReportingDomestic Foreign Total

Metals 20,689.82 95.94 20,785.76 707.38 21,493.14

Energy 17,215.87 366.45 17,582.32 151.14 17,733.46

Infrastructure 8,649.16 - 8,649.16 44.60 8,693.76

Total 46,554.85 462.39 47,017.24 903.12 47,920.36

b) The opening and closing balances of contract assets and contract liabilities from contracts withcustomersarepresentedbelow:-

(₹ in lakhs)

Particulars Contract Assets Contract Liabilities

OpeningBalance(Ason01.04.2018) NIL 5,064.12

ClosingBalance(Ason31.03.2019) NIL 5,010.52

c) Duringtheyearended31stMarch,2019,thecompanyrecognizedrevenueof₹558.13Lakhsarisingfromopeningcontractliabilitiesasof1stApril,2018.

d) Theaggregatevalueofremainingperformanceobligationsthatarecompletelyorpartiallyunsatisfiedasof31stMarch,2019is₹1,90,743.34LakhsandtheCompanywillrecognisethisasrevenueasandwhenperformanceobligationsaresatisfied.

e) Determining the timing of satisfaction of performance obligations:- The Company recognizes revenueusingOutputmethodbasedonsatisfactionoftheperformanceobligation/righttoreceivepayment.Outputmethodmeasuresprogress towards satisfactionof performanceobligations in amannerthatprovidesafaithfuldepictionofthetransferofgoodsorservices.

f) Determining the transaction price with respect to estimating variable consideration:- Incaseswhereliquidateddamagesarisesoutofcontractualtermswhentheworkisnotcompletedwithinthecompletionscheduleor fornon-achievementofanyparameter, the liquidateddamagesamount isadjustedfromthecontractfeeforrevenuerecognition.

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g) Effectivefrom1stApril,2018,theCompanyhasadoptedIndAS-115usingthecumulativecatchupmethod.Thestandardisappliedretrospectivelyonlytocontractsthatarenotcompletedasatthedateofinitialapplicationandthecomparativeinformationhavenotbeenrestatedduetoinitialapplicationofthisstandard.TheCompanyrecognizedanetincreaseinopeningretainedearningsby₹13,485.57lakhsason1stApril,2018duetothecumulativeimpactofadoptingthenewrevenuestandard.TheimpactwasprimarilyduetochangeinaccountingpoliciesforRevenueRecognition.

PursuanttoadoptionofIndAS115,ProfitAfterTax(PAT)hasincreasedby₹60.96lakhsandTotalAssets&Liabilitieshaveincreasedby₹5,739.40lakhs.

h) RevenuefromforeignjobsisrecognisedonthebasisofvalueofinvoicesraisedinlinewithapprovedaccountingpolicyandIndianAccountingStandardsasapplicable.

40.16 Considering thenatureofCompany’sbusiness and the typeof assetsheldby theCompany, there isnoindicationoflossduetoimpairmentofassetsasat31.03.2019asperIndAS-36.

40.17 Other Income includes interest on deposits with banks / financial institutions / employees, othermiscellaneous income, etc. which are recognized on accrual basis. However, dividend income frominvestmentsisrecognizedasandwhentherighttoreceivethepaymentisestablished.

40.18 Incaseofforeclosureofjobs,thefeemutuallysettledbetweentheclientandtheCompanyisconsideredas100%valueofworkdoneandincomeisaccountedforaccordingly.Incase,thesettledfeeislessthantheincomealreadybooked,suchexcessincomeischargedtorevenueunderthehead“FeesWithdrawn”(ReferNote37).

40.19 Provision against penalties and fines are made when it is deducted by the client and admitted by theCompany.

40.20 Provisionsagainst liquidateddamagesarenotmade to theextentamountadjusted fromrevenuewhereliquidateddamagesamounthasbeendeductedbytheclient.

40.21 Disclosure on R&D:

(₹ in lakhs)

Particulars 2018-19 2017-18

OpeningBalanceofFund 135.46 135.46

Add:Allocation/Provisionmadeduringtheperiod 29.00 NIL

Less:Adjustment/Utilizationmadeduringtheperiod 1.88 NIL

ClosingBalanceofFund (Refer Note 15) 162.58 135.46

NecessaryR&DFundhavebeencreateddebitingP/LaccountandR&DexpenseshavebeendebitedtoR&DFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.

40.22 Disclosure on CSR:

(₹ in lakhs)

Particulars 2018-19 2017-18 CSRProjects/Programmes,etc. 16.92 40.63Others NIL 1.69TotalAmountSpent 16.92 42.32Amountunspentoutofprescribedallocatedsumduringtheperiod NIL NIL

NecessaryCSR&SDFundhavebeencreateddebitingP/Laccountuptothefinancialyear2013-14andCSR&SDexpenseshavebeendebitedtoCSR&SDFundinlinewithDPEguidelinesissuedfromtimetotimeasapplicable.UnspentamountcarriedforwardinCSR&SDFundis₹456.07lakhsason31.03.2019(₹456.07lakhsason31.03.2018).

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From2014-15onwardsnecessaryCSRamountisappropriated/transferredtoCSRActivityReserveandCSRamountspentisadjusted/transferredfromCSRActivityReserve.Duringtheyear2018-19₹87.96lakhs(PreviousYear₹NIL)istransferredfromSurplustoCSRActivityReserve.UnspentCSRamountcarriedforwardundertheheadCSRActivityReserveis₹71.04lakhsason31.03.2019(₹NILason31.03.2018).

40.23 InformationinrespectofmicroandsmallenterprisesasrequiredbyMicro,Small&MediumEnterprisesDevelopmentAct,2006(MSMEDAct)readwithnotificationofMinistryofCorporateAffairsdated11th October,2018totheextentinformationavailablewiththeCompanyareasunder:

(₹ in lakhs)

Sl. No. Particulars As at

31.03.2019As at

31.03.2018

(a) Amountremainingunpaidtoanysupplier:

-PrincipalAmount,remainingunpaid 3,828.35 4,018.75

-InterestdueonPrincipalAmount,remainingunpaid – –

(b) AmountofinterestpaidintermsofSection16oftheMSMEDAct along with the amount paid to the suppliers beyondappointeddayduringtheyear

– –

(c) Amount of interest due and payable for the period of delayinmaking payment (which have been paid but beyond theappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMSMEDAct.

– –

(d) Amountofinterestaccruedandremainingunpaidattheendoftheyear

– –

(e) Amountoffurtherinterestremainingdueandpayableeveninthesucceedingyear,untilsuchdatewhentheinterestduesasaboveareactuallypaidtothesmallenterprise,forthepurposeofdisallowanceasadeductibleexpenditureunderSection23oftheMSMEDAct.

– –

40.24 Deferredtaxassetsarerecognizedtotheextentthatitisprobablethattheunderlyingtaxloss,unusedtaxcredits(MATCreditentitlement)ordeductibletemporarydifferencewillbeutilizedagainstfuturetaxableincome.Unrecognizeddeferredtaxassetsarere-assessedateachreportingdateandarerecognizedtotheextentthatithasbecomeprobablethatfuturetaxableprofitswillallowthedeferredtaxassettoberecovered.

40.25 Wagerevisionisduefornon-executiveemployeesw.e.f.01.01.2017.Duringtheyear2018-19,provisionhasbeenmadefor₹75.29lakhs(PreviousYear₹17.69lakhs)towardswagerevisioninrespectofnon-executiveemployees,basedonestimateandinformationasavailable,etc.

40.26 Payrevision isdueforexecutiveemployeesw.e.f.01.01.2017. However,consideringtheDPEOMdated03.08.2017 and the financial status of the company, provision for pay revision in respect of executiveemployeesisnotmadeduringtheyear.However,thematterwillbereviewedin2019-20basedoncompany’sperformance.etc.

40.27 Advance of ₹756.86 lakhs was given to M/s Mysore Construction Company (W.O. No. 11.51/Q6AA/Civil/7720dated05.12.2005)againstvalidBankGuarantees.TheCompanylodgedclaimswithinduedateagainstBankGuarantees submittedby theparty. However,M/sMysoreConstructionCompanysoughtinjunctionagainsttheencashmentofBankGuaranteefromHon’blePrincipalDistrictCourtatCuddalore.Hon’blePrincipalDistrictCourt,CuddaloredirectedM/sMysoreConstructionCompanytokeeptheBankGuaranteesinexistencetilldisposalofpetition.

40.28 Consequent to the execution case betweenM/sHindustan Controls and Equipment Pvt. Ltd andM/sMECONLimited,anaccountpayeechequeof₹2,084.53lakhsdated06.08.2019favoringM/sHindustanControlsandEquipmentPvt.Ltdwasdeposited in theCommercialCourt,Ranchi(executioncourt)on

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MECON

06.08.2019 by the Company against warrant of attachment issued by the Commercial Court, Ranchi.PendingfinaldecisionoftheCompany’sappealinHon’bleJharkhandHighCourt,theCompanyrequestedtheCommercialCourttodirecttheclaimanttosubmitsomeformofsecurityintheCommercialCourt,Ranchiinordertowithdrawthedepositedchequeandthesamehasbeentreatedascontingentliability.

40.29 Financial Instruments:

Financialassets/liabilitiesarerecognizedinitiallyatfairvalueandtransactioncostthatisattributabletotheacquisitionofthefinancialassetisalsoadjusted.Subsequenttoinitialrecognition,allfinancialassetsaremeasuredeitheratamortisedcostorat fairvalue. Financial liabilitiesaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestrate(EIR)method.

Valuationprocessandtechniqueusedtodeterminefairvalue:

1) Thecarryingamountoffinancialassetsandliabilitieswithlessthan12monthsareconsideredtoberepresentativeoftheirfairvalue.

2) Investmentsinassociateandjointventurearemeasuredatcost.

Risk Management

TheCompanyisexposedtovariousrisksinrelationtofinancialinstruments.Themaintypesofrisksaremarketrisk,creditriskandliquidityrisk.TheCompany’sriskmanagementiscoordinatedatitsheadquarters,inclosecooperationwiththeboardofdirectors,andfocusesonactivelysecuringtheCompany’sshorttomedium-termcashflowsbyminimising the exposure to volatile financialmarkets. Long-termfinancialinvestmentsaremanagedtogeneratelastingreturns.Thecompanydoesnotactivelyengageinthetradingoffinancialassets.ThemostsignificantfinancialrisktowhichtheCompanyisexposediscreditrisk.

Credit Risk

CreditriskistheriskthatacounterpartyfailstodischargeanobligationtotheCompany.TheCompanyisexposedtothisriskforvariousfinancialinstruments.TheCompany’smaximumexposuretocreditriskislimitedtothecarryingamountoffollowingtypesfinancialassets.

� Cashandcashequivalents

� TradeReceivables

� Otherfinancialassets

The Company continuously monitors defaults of customers and other counterparties, identified eitherindividuallyorbytheCompany,andincorporatedthisinformationintoitscreditriskcontrols.

a) Credit risk management

Cash and cash equivalent

Creditriskrelatedtocashandcashequivalentsismanagedbyonlyacceptinghighlyratedbankdepositsandaccountsindifferentbanksacrossthecountry.

Trade Receivables

TheCompanycloselymonitorsthecredit-worthinessontheTradeReceivablesandonlyprovideservicetocreditworthyparties.

Other financial assets

OtherfinancialassetsforexampleloansandadvancestoemployeesandotherCreditriskrelatedtotheseotherfinancialassetsismanagedbymonitoringtherecoverabilityofsuchamountcontinuously.

b) Expected credit losses

Companyprovidesexpectedcreditlossesbasedonthefollowing:

Trade Receivables

TheCompanyrecognizeslifetimeexpectedcreditlossesonTradeReceivablesusingasimplifiedapproachanduseshistoricalinformationtoarriveatlosspercentagerelevanttoeachcategoryoftradereceivables:

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MECON Limited

(₹ in lakhs)

Ageing (As at 31st March, 2019) 0-12 months

12-24 months

24-36 months

More than 36 months Total

Gross carrying amount 30,168.14 6,787.19 3,419.85 11,903.63 52,278.81

Expectedcreditlossprovision 681.80 153.39 77.29 6,780.22 7,692.70

Carryingamountoftradereceivables(Netofimpairment)

29,486.34 6,633.80 3,342.56 5,123.41 44,586.11

Ageing (As at 1st April, 2018) 0-12 months

12-24 months

24-36 months

More than 36 months Total

Gross carrying amount 27,177.24 3,470.41 3,305.77 9,599.04 43,552.46

Expectedcreditlossprovision 559.61 71.25 68.10 4,255.61 4,954.57

Carryingamountoftradereceivables(Netofimpairment)

26,617.63 3,399.16 3,237.67 5,343.43 38,597.89

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

12-24 months

24-36 months

More than 36 months Total

Gross carrying amount 27,165.53 3,458.89 3,306.51 9,555.70 43,486.63

Expectedcreditlossprovision 561.28 71.25 68.11 4,208.93 4,909.57

Carryingamountoftradereceivables(Netofimpairment)

26,604.25 3,387.64 3,238.40 5,346.77 38,577.06

Reconciliation of Expected Credit Loss Provision(₹ in lakhs)

Particulars AmountAs at 31st March, 2018 4,909.57Changesinprovision 45.00As at 1st April, 2018 4,954.57Changesinprovision 2,738.13As at 31st March, 2019 7,692.70

Other financial assets

Companyprovidesforexpectedcreditlossesonfinancialassetsotherthantradereceivablesbyassessingindividualfinancialinstrumentsforexpectationofanycreditlosses.Sincethiscategoryincludesfinancialassetsofvariednaturesandpurpose,thereisnotrendthatthecompanycandrawtoapplyconsistentlytoentirepopulation.TheCompanydoesnothaveanyexpectedlossbasedimpairmentrecognisedonsuchassetsconsideringtheirlowcreditrisknature.40.30 Previousyear’s/year-to-datefigureshavebeenregrouped/recastwherevernecessaryintheBalanceSheet,

StatementofProfit&Loss,CashFlowStatementandNotes,etc.

40.31 Recent Indian Accounting Standards (Ind AS) pronouncements

MinistryofCorporateAffairs(“MCA”)throughCompanies(IndianAccountingStandards)AmendmentRules,2019andCompanies(IndianAccountingStandards)SecondAmendmentRules,2019hasnotifiednewandamendmentstoIndASeffectivefrom1stApril,2019whichtheCompanyshallfollowasapplicable:

a) IndAS116–Leases

IndAS116willreplacetheexistingleasesstandard,IndAS17Leases.IndAS116setsouttheprinciplesforrecognition,measurement,presentationanddisclosureofleasesforbothlesseesandlessors.Itintroduces

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MECON

a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use assetrepresentingitsrighttousetheunderlyingassetandaleaseliabilityrepresentingitsobligationtomakeleasepayments.Thestandardalsocontainsenhanceddisclosurerequirementsforlessees.IndAS116substantiallycarriesforwardthelessoraccountingrequirementsinIndAS17.

TheCompanyshallapplythemodifiedretrospectivemethodofthestandardtoitsleases,retrospectively,with thecumulativeeffectof initiallyapplying the standard recognisedat thedateof initial application,i.e.,1stApril,2019.Underthemodifiedretrospectiveapproach,thelesseerecordstheleaseliabilityasthepresentvalueof theremaining leasepayments,discountedusing the lessee’s incrementalborrowingrateasat1stApril,2019.Theright-of-useassetisrecognisedatanamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelatedtothatleaserecognisedunderIndAS17immediatelybeforethedateofinitialapplication.Inaccordancewiththestandard,theCompanywillnotapplytherequirementsofIndAS116toshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.

Ontransition,theCompanywillbeusingthepracticalexpedientprovidedbythestandardandtherefore,willnotreassesswhetheracontract,isorcontainsalease,atthedateofinitialapplication.

TheCompanydoesnotexpectanysignificanteffectonaccountofadoptionofIndAS116.

b) IndAS12–IncomeTaxes(amendmentsrelatingtoincometaxconsequencesofdividendanduncertaintyoverincometaxtreatments)

Theamendmentrelatingtoincometaxconsequencesofdividendclarifythatanentityshallrecognisetheincometaxconsequencesofdividendsinprofitorloss,othercomprehensiveincomeorequityaccordingtowheretheentityoriginallyrecognisedthosepasttransactionsorevents.TheCompanydoesnotexpectany impact from this pronouncement.The amendment toAppendix C of IndAS 12 specifies that theamendmentistobeappliedtothedeterminationoftaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates,whenthereisuncertaintyoverincometaxtreatmentsunderIndAS12.Itoutlinesthefollowing:(1)theentityhastousejudgement,todeterminewhethereachtaxtreatmentshouldbeconsideredseparatelyorwhethersomecanbeconsideredtogether.(2)theentityistoassumethatthetaxationauthoritywillhave fullknowledgeof all relevant informationwhile examininganyamount (3)entityhastoconsidertheprobabilityoftherelevanttaxationauthorityacceptingthetaxtreatmentandthedeterminationoftaxableprofit(taxloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrateswoulddependupontheprobability.TheCompanydoesnotexpectanysignificantimpactoftheamendmentonitsfinancialstatements.

c) IndAS19–EmployeeBenefits(PlanAmendment,CurtailmentorSettlement)

TheamendmentsrequiretheCompany

� touseupdatedassumptionstodeterminecurrentservicecostandnetinterestfortheremainderoftheperiodafteraplanamendment,curtailmentorsettlement;and

� torecogniseinprofitorlossaspartofpastservicecost,oragainorlossonsettlement,anyreductioninasurplus,evenif thatsurpluswasnotpreviouslyrecognisedbecauseof the impactof theassetceiling.

TheCompanydoesnothaveanyimpactonaccountofthisamendment.

d) IndAS23–BorrowingCosts

Theamendmentsrequirethatifanyspecificborrowingremainsoutstandingaftertherelatedassetisreadyforitsintendeduseorsale,thatborrowingbecomespartofthefundsthatanentityborrowsgenerallywhencalculatingthecapitalisationrateongeneralborrowings.TheCompanydoesnotexpectanyimpactfromthisamendment.

131

MECON

MECON Limited

FORM AOC-IPart “B”: Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Name of Joint Venture M/s Metallurgical & Engineering Consultants (Nigeria) Limited

1. Latest audited Balance Sheet Date Fortheyearendingon31.12.2014

2. Date on which the Joint Venture was associated or acquired

28.10.1982

3. Shares of Joint Ventures held by the company on the year end

No. 5000

AmountofInvestmentinJointVenture ₹7.60lakhs

ExtentofHolding% 50%

4. Description of how there is significant influence

MajorityofthemembersoftheBoardofM/sMetallurgical& Engineering Consultants (Nigeria) Limited are alsoDirectors / Senior Managerial Personnel of MECONLimited.

5. Reason why the associate/joint venture is not consolidated

Consolidation is not applicable for Joint Venturecompany.

6. Networth attributable to Shareholding as per latest audited Balance Sheet

(-)₹309.94lakhs(50%)

7. Profit / Loss for the year (-)₹34.38lakhs

i. Considered in Consolidation NotApplicable

ii. NotConsideredinConsolidation NotApplicable

In terms of our report of even date

For V. ROHATGI & CO. CHARTERED ACCOUNTANTS

Sd/- (PRAVEER RANJAN)

PARTNER Memb.No.076295

Firm Regn. No.000980C

Sd/- (RAVI BAMBHA)

COMPANY SECRETARY

Sd/- (S. SAMANTA) DY. GENERAL MANAGER I/C

(FINANCE)

Sd/- (R. H. JUNEJA)

DIRECTOR (FINANCE)

Sd/- (ATUL BHATT)

CHAIRMAN and MANAGING DIRECTOR

Place : Ranchi

Date : 11th September, 2019

UDIN : 19076295AAAAAB1433

132

MECON

CMD MECON Shri Atul Bhatt, welcoming Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel

Smt. Rasika Chaube, Additional Secretary, Ministry of Steel, being briefed about various projects of MECON during her visit to technical sections of MECON

Shri Yogendra Paswan, member of National Commission for Scheduled Caste (NCSC) during his visit to MECON

Under the aegis of Ministry of Steel, MECON participated in METEC 2019 at Dusseldorf, Germany, to showcase India’s Steel Growth story at Indian Steel Pavilion.

Shri Atul Bhatt, CMD MECON, addressing the gathering at India Steel 2019, 4th International Exhibition & Conference on Steel Sector, at Mumbai.

MECON was awarded 1st prize in the16th National Award on Excellence in Cost Management 2018, category- Consulting & others, by the Institute of Cost Accountants of India

MECON received 1st CSR Honourable Mention 2019- Excellence in CSR in Challenging Circumstances from Ministry of Corporate Affairs in presence of Hon'ble President of India and other dignitaries for

implementation of Solar water pumping system in adopted village, Pancha

Hon’ble Shri Dharmendra Pradhan, Minister of Petroleum & Natural Gas and Minister of Steel, along with Shri Atul Bhatt, CMD MECON, Shri PK Sarangi, Director (Technical), Shri Goutam Chatterjee, Director (Commercial), Shri Salil Kumar, Director (Projects) and Shri RH Juneja,

Director (Finance) during Review meeting of MECON, at Ranchi

GLIMPSES OF CSR ACTIVITIES

Health Camp at Adopted Village - Sungi, Karra, District - RanchiAnnual Examination of Stitching Training Centres

Swacchta Abhiyan at Adopted Village - Pancha, Bundu, District - Ranchi

Painting Competition (Swacchta Abhiyan) for the School Children of Adopted Village - Sungi, Karra, District - Khunti

Foundation Laying of Boys Hostel Building at Orphanage (Anmol Basera), Village - Sungi, Karra, District - Khunti

Cataract Surgery of Villagers of Mecon's Adopted Village at Ispat Hospital, Shyamali

2018-1946th ANNUAL REPORT

MECON LIMITED

MECON

MECON LIMTED(A Govt. of India Enterprise)

MECON YEARS OF

CELEBRATINGTHE MAHATMA

Head O�ceVivekananda Path, Doranda, Ranchi - 834002, Jharkhand, India

CIN No. - U74140JH1973GOI001199www.meconlimited.co.in

For Enquiry Contact

Major O�ces

Joint General Manager (Marketing)Phone : +91-651-2483136/2481440, Fax : +91-651-2482214/ 2482189

E-mail: marketing@meconlimited.co.in

City Phone Fax e-mailBangalore +91-80-26252000 +91-80-26576352 bangalore@meconlimited.co.inNew Delhi +91-11-22041872 +91-11-22041214 delhi@meconlimited.co.inNavi Mumbai +91-22-27812155-58 +91-22-27812275 mumbai@meconlimited.co.inKolkata +91-33-22822381-82 +91-33-22824441 kolkata@meconlimited.co.in

Find us on : @MECONLimited /@meconranchi meconranchi

396_1019_ Annapurna Press & Process 0651-2331800, appranchi.1969@gmail.com