Your directors are pleased to present their report on the business and operations ofthe Company and the statement of accounts for the financial year ended on 31stMarch 2021.
(Rs. in crores)
|Particulars ||2020-21 ||2019-20 |
|Income from operations ||6384.96 ||6473.79 |
|Profit before depreciation & tax (PBDT) ||1284.38 ||1918.59 |
|Profit before exceptional item(s) and tax ||762.46 ||1405.59 |
|Exceptional Item(s) ||83.36 ||881.63 |
|Profit before tax (PBT) ||679.10 ||523.96 |
|Provision for tax including prior period tax adjustments ||175.77 ||148.18 |
|Profit after tax (PAT) ||503.33 ||375.78 |
|Other Comprehensive Income ||(-)7.89 ||(-)10.33 |
|Total Comprehensive Income for the period ||495.44 ||365.45 |
|Appropriations: || || |
|Interim Dividend (Current Year) ||182.79 ||45.70 |
|Final Dividend (Last Year) ||173.65 ||520.94 |
|Corporate tax on dividend ||- ||112.41 |
|Transfer to general reserves ||50.33 ||37.58 |
|Balance carried to Balance Sheet ||88.67 ||(-)351.18 |
|Earnings per share (Rs.) ||8.26 ||6.17 |
As per the guidelines issued by Department of Investment and Public Asset Management(DIPAM) the minimum dividend to be paid for the year should be at least 5% of net worth or30% of profit after tax whichever is higher. Taking into consideration the above andother factors for the year 2020-21 the Board recommended a final dividend of 40% (Rs.2per equity share of Rs.5/- each) on the paid up share capital of Rs.304.65 crores inaddition to Interim Dividend of 60% (Rs.3 per equity share of Rs.5/- each). The totaldividend (interim plus final) including Dividend Distribution Tax (DDT) on InterimDividend for the year 2020-21 will be Rs.304.65 crores as compared to Rs.228.06 crores forthe FY 2019-20. The dividend paid/proposed for the year 2020-21 works out to 60.53% ofprofit after tax of the Company for the year.
The operating turnover of your Company registered a decline of 1.37% during the yearunder review from Rs.6473.79 crores in the previous year to Rs.6384.96 crores in thecurrent year. Total expenditure increased by 10.47% from Rs.5347.93 crores in 2019-20 toRs.5907.98 crores in 2020-21. The profit before tax works out to Rs.679.10 crores anincrease of 29.61% over 2019-20. After making provisions for income tax tax adjustmentsthe profit after tax stands at Rs.503.33 crores which is 33.94% higher than last year.The profit before tax and profit after tax for the current year and previous year are notcomparable as in both these years certain provisions including for exceptional items weremade by the Company. During 2019-20 these provisions were related to Rs.861.05 crores foramount receivable on account of benefit under Service Export from India Scheme (SEIS) andRs.20.58 crores for impairment loss of Investment in M/s Fresh & Healthy EnterprisesLimited (FHEL) a wholly owned subsidiary of CONCOR. In 2020-21 the provisions wereRs.72.84 crore for Post Retirement Medical benefits; Rs.77.41 crore for amount recoverablefrom Railways for property built on Railways Leased Land; Rs.46.54 crores for service taxon LLF; Rs.5.95 crore for impairment of investment in FHEL and enhanced payment of LandLicense Fee (LLF) for terminals built on Railway's Leased Land which all has impacted theprofitability of the company in the current year.
The throughput of your company reflects a marginal drop during the year 2020-21 incomparison to the year 2019-20. The segment-wise comparison is as under:
|Handling at Terminals (In TEUs) ||2020-21 ||2019-20 ||%age Growth |
|EXIM ||3035794 ||3154596 ||(-)3.77 |
|Domestic ||607536 ||593162 ||2.42 |
|Total ||3643330 ||3747758 ||(-)2.79 |
As can be seen there has been a marginal drop of 3.77% in EXIM despite outbreak ofCOVID-19 pandemic in the FY 2020-21. However the Domestic throughput registered a growthof 2.42% during the year 2020-21. In terms of tonnage carried by rail the company carrieda total tonnage of 42.02 million tons in current fiscal as against 40.43 Million tons inprevious fiscal (2019-20) with an increase of 3.93%.
The authorised and paid up share capital of the Company at the end of the current yearwas Rs.400 crore and Rs.304.65 crore respectively in which there was no change since lastyear. Also there was no change in the shareholding of Government of India and others inthe Company during the year 2020-21 and as on 31.03.2021 their shareholding was 54.80% and45.20% respectively.
LISTING AND DEMATERIALIZATION OF SHARES:
CONCOR has only one class of security i.e. equity shares listed with the StockExchanges in India. CONCOR's equity shares are listed with the two bourses namely BSELimited (BSE) and National Stock Exchange of India Limited (NSE). The listing fees of boththe stock exchanges have been paid. To facilitate dematerialization of shares by itsshareholders CONCOR has signed agreements with both the Depositories (NSDL & CDSL).As per SEBI guidelines CONCOR's shares have been placed under Compulsory DematMode'. Out of 609294348 equity shares of Rs.5/- each listed on the Stock Exchanges609292976 equity shares (99.9998% of the total equity shares) were in demat mode as on31.03.2021. The market capitalization of the Company was Rs.36436 crores as on 31.03.2021(as per closing price on last trading day of the year at NSE) and subsequently marketcapitalization touched its ever highest level of Rs.43851 crore on 07.06.2021 as perclosing price at NSE.
Capital Expenditure of Rs.551.41 crores approx. was incurred during the year mainly ondevelopment/expansion of terminals acquisition of wagons handling equipment and ITInfrastructure etc.
NEW TERMINALS & TERMINAL NETWORK EXPANSION:
The company has 60 terminals in total as on 31.03.2021 of which 06 are pure EXIMterminals 34 are combined Container terminals and 17 are pure Domestic Terminals. CONCORhas also entered in 3 strategic Tie ups at various locations.
Letter of Intent were issued by Customs for EXIM operations for CONCOR's CFS at Mundraand ICD at Kadakola during the year.
HIGH SPEED WAGONS CONTAINERS AND HANDLING EQUIPMENTS:
In order to strengthen and improve the service level CONCOR modified 2925 Bogie LowContainer (BLC) wagons into Bogie Low Container Modified (BLCM) rakes with increasing axleload capacity from 20.3T to 22T in FY 2020-2021. Further 470 numbers of BLCM wagons havebeen taken on Lease for the period of 10 years since 2018-19. Therefore total wagons(BLC+BLCM+BLL+BFKHN+BVZI) holding including leased wagons as on 31.03.2021 were 15656and commissioning of 25 Ton axle high speed BLCS wagons is under process.
During the FY 2020-21 8810 twenty feet containers have been inducted in CONCOR'sfleet of domestic containers. Further 1918 containers were off-hired / auctioned duringFY 2020-21. As on 31.03.2021 your Company has 37886 (owned plus leased) containers.
During the year 2020-21 2 gantry cranes were decommissioned and as on 31.03.2021 theCompany owned 111 RSTs and 14 Gantry cranes.
Your Company continued to make progress in the field of Information Technology. TheVSAT based hybrid network has been upgraded with MPLS cloud and now it covers 61locations. The Terminal Management System for Domestic (DTMS) for EXIM (ETMS) ERP forOracle Financial HR Payroll Container Repair System Operation system was implementedfor the expanded network of terminals and a Data Warehouse Module for commercialapplications on centralized architecture is running smoothly across fieldlocations/Regional Offices and Corporate Office.
The web enabled Customer interface through a dedicated Web Server is runningsuccessfully providing facilities to the customers. The customer feedback facility systemas implemented on the website and on mobile app enables us to constantly evaluate ourperformance and take corrective action on Customer complaints and feedback.
Public Grievance lodging and monitoring system has been deployed on CONCOR's websitefor Grievance Redressal system. The objective of the system is to reduce time inaddressing grievance to increase transparency and round the clock access for lodging andmonitoring grievance.
The Electronic-filing of documents on the Commercial System initially provided atICD/Tughlakabad have now been extended to all EXIM terminals which enables the customersto file their documents electronically from their own offices and on-line payment mode ofNEFT/RTGS has been enabled. As part of business continuity plan CONCOR has establishedbackup site and standby system at primary site for its commercial business criticalapplications. CONCOR has been re-certified ISO/IEC-27001:2013 certification from STQC ITCertification Services (Ministry of Communication & Information Technology) forestablishing an Information Security Management System (ISMS).
As an extension of existing HRMS employee portal has been introduced. This systemfacilitates employees to access information regarding salary/ reimbursements leavebalances PF statement view and submit their APAR online online submission of AnnualProperty return pension details etc. and employee has option of viewing of theinformation on the screen and the printout of the same can also be taken for the record.The Employee feedback facility system implemented on the mobile app enables CONCOR toconstantly evaluate their performance and take corrective action on employee complaintsand feedback. Online payment systems for Corporate Office and all regions are implementedfrom Oracle Financials.
The e-tender system with e-payment facility for sale and EMD electronically MSEexemptions has also been introduced. The site is integrated with online payment gatewayfor collection of fees. CONCOR has implemented reverse auction and has re-designed itsCorporate website to the responsive website.
CONCOR has launched its FMLM (First Mile Last Mile) mobile app to EXIM customers tofacilitate end to end solutions. CONCOR customer can directly opt for this roadtransportation services facility. e-Reverse Auction platform (e-Logistics App) fortransporter for FMLM rates (local transportation rates). No need for long term contractshelps extracting competitive rates.
The e-Samarth application for Online Vigilance Clearances to handle bulk NOC requestcreation and approval and workflow driven system has been evolved. This has increasedtransparency and drastically reduced the total time of according NOC for various purposes.Similarly e-Voting was successfully done for CONCOR shareholders. File tracking systemwas implemented at Corporate office of CONCOR. e-meeting app for conducting paperlessBoard and Committee meetings of CONCOR and its Subsidiaries have been implemented.
CONCOR has launched its mobile app for disseminating the information (public tariffrail tariff track & trace Company directory etc.) for its stakeholders and haslaunched mobile app for Exim e-filing (covering reports & queries) for itsstakeholders. CONCOR has launched its FMLM (First Mile Last Mile) mobile app to EXIMcustomers to facilitate end to end solutions. CONCOR has adopted various systemimprovements like dispensing submission of e-tender document with an undertaking makingavailable all circulars and guide lines of all departments to all employees on intranetwith name Compendium.concorindia.com has introduced auto refund of EMD on e-tenderingsystem. CONCOR has started bulk coal movement in Commercial system necessary changesincorporated to capture same in system.
CONCOR has implemented:
(i) E-office replacing the physical files with electronic files as a step towardsoffice automation and paper less working.
(ii) The Integration of commercial applications with Oracle Financials ERP. Developeddash board to glance the performance and various reports of CONCOR.
(iii) E-contractor billing for online submission of invoices by contractors throughtheir digital signature only processed till payment.
(iv) KYCL for online track and trace of container for its customers through mobile appchatbot etc.
(v) Bill tracking system to its vendors through website.
(vi) eMB software application for billing and release of payments.
(vii) Aadhar linked e-Signing facility for digitally signing of e-office filesimplemented.
CONCOR continues to enjoy ISO 9001:2015 certification and as on 31.03.2021 50 Nos. ofTerminals were ISO 9001:2015 certified. It is an illustration of the total commitment ofyour Company towards Quality Management System. Quality Policy clearly provides forensuring complete customer convenience & satisfaction and value for money throughcontinual improvement of system and processes. The Quality Policy has been prominentlydisplayed at all locations of CONCOR. Safety Slogans are displayed at prominent locationsat various terminals of CONCOR. ISO Certification is available for most of the units ofthe Company. Disaster Management System has been hosted on CONCOR website. Further in itsendeavor to maintain high standards of quality your Company has been taking varioussteps some of which are as follows:
Conducting periodical Management Review Meetings wherein various actions were takenwith regard to Disaster Management Safety Norms and Quality Standards. Quality Auditswere undertaken from time to time by Quality Auditors who have been trained internallyfor this purpose. Annual Surveillance Audit was undertaken by an independent agency for anumber of units.
JOINT VENTURES/ STRATEGIC ALLIANCES:
Your Company continued to place emphasis on providing total logistics and transportsolutions to its customers by exploring the possibilities of expanding the presence of theCompany in all segments of Logistics value chain in the EXIM as well as Domestic segments.Strategic alliances firmed up both for optimal utilization of infrastructure as well asexpansion into other segments of the value chain for effectively achieving the goals.
SIDCUL CONCOR Infra Company Ltd. (SCICL) a Joint Venture Company (JVC) withshareholding of 74% and 26% of Container Corporation of India Limited (CONCOR) and StateInfrastructure & Industrial Development Corporation of Uttarakhand Ltd. (SIIDCUL)respectively had developed a Multimodal Logistic Park (MMLP) at Pantnagar located approx.300 mts from Rudrapur-Haldwani State Highway and approx. one km. from the NH87. SCICL isdoing operations in both the stream i.e. EXIM and Domestic.
The MMLP is strategically located near national highway No. 87 and has wide hinterlandcovering industrial areas like Pantnagar Haldwani Bazpur Gadarpur Kichha SitarganjKhatima Lalkuwa Bareilly etc.
SCICL provides Rail/Road transportation Handling and warehousing to EXIM and Domesticcustomers. The facility provides Rail connectivity to/from three gateway ports i.e. Mundra& Pipava in Gujarat and JNPT in Mumbai. In domestic segment MMLP is providing serviceson pan India basis in general and particularly to Mumbai/ Dronagiri/ Gandhidham in WestHyderabad/ Chennai and Bangalore in south and Shalimar (Kolkata) in East.
The MMLP is also ready for NMG Rake service covering all India destinations. Inaddition to the transportation the MMLP also provides warehousing facility includingBonded & Transit warehousing for domestic and EXIM customers.
During FY 2020-21 SCICL handled 570 rakes which were 478 rakes in FY 2019-20. Thecontainers handled were 43664 TEUs which were 37898 TEUs in FY 2019-20. Its revenue frombusiness operations for the FY 2020-21 was Rs.15.19 crores which was Rs.12.84crores in FY2019-20 reflecting a growth of 18.30% over previous year. The JVC is expected to emergeas a major logistics service provider for rail logistics for the rapidly industrializingState of Uttarakhand.
Punjab Logistics Infrastructure Limited (PLIL) is a JVC of CONCOR and Punjab StateContainer and Warehousing Corporation Limited (CONWARE) with shareholding of 51% and 49%respectively. This Company has developed a MMLP in the State of Punjab facilitating tradeand industry of the State and putting them on International map.
During the year under review FY 2020-21 PLIL achieved turnover of Rs.18.14 crore asagainst Rs.31.52 cCrore in the previous financial year 2019-20 which shows a decline42.45%. The total expenditure decreased by 23.19% from Rs.39.79 crore in FY 2019-20 toRs.30.56 crore in FY 2020-21. Loss before tax during the year under review i.e. FY 2020-21stood at Rs.12.35 crore as compared to Rs.8.18 crore during the previous financial year2019-20 which shows an increase 50.97%. The loss after tax during the year under reviewi.e. FY 2020-21 was Rs.9.13 crore as compared to the profit after tax of Rs.0.05 crore forthe previous FY 2019-20. The performance of the company during the year was impacted dueto spread of Covid-19 Pandemic and disruption in transportation/operations due to otherlocal factors.
The above two Companies i.e. SCICL & PLIL are also subsidiaries of your Company asit is holding majority of shares in these companies.
While the existing Joint Ventures continued to perform to their full potentialcontributing to the growth of the core business of CONCOR new strategic alliances weremade:
In February 2021 on the eve of Maritime India Summit - 2021 a MoU was signedbetween CONCOR and Port of Chennai declaring ICD-TNPM as an Extended Gateway of ChennaiPort. The MoU aims to improve the rail co-efficient of ports container movement.
FHEL signed MoU with NeML (NCDEX eMarkets Limited) on 24.02.2021 for jointly providingservices like facility for storage of material at FHEL Rai Sonepat Market Linkages PostHarvest consultation services access to the electronic platform connecting buyers andsellers to the prospective clients. MoU between CONCOR and ITE (Innovation thru EnergyCompany Limited) Japan had been extended for a further period of 6 months w.e.f22.01.2021.
On 30th September 2020 CONCOR signed a MoU with Ministry of Railways for defining MoUtargets for 2020-21. CONCOR is exploring the possibility of merger of its subsidiarycompanies i.e. M/s. CONCOR AIR Ltd. (CAL) M/s SIDCUL CONCOR Infra Company Ltd. (SCICL)and M/s Punjab Logistics Infrastructure Ltd. (PLIL) with CONCOR. The Board of Directors ofthe Company has approved scheme of amalgamation of CAL with CONCOR which is subject tonecessary approvals and agreement/consent of concerned stakeholders. For the amalgamationof SCICL and PLIL the company is in discussion with the partners in these companiesnamely SIIDCUL and Conware respectively.
WHOLLY OWNED SUBSIDIARIES:
CONCOR had incorporated M/s. Fresh & Healthy Enterprises Ltd. (FHEL) In the year2006 as its wholly owned subsidiary to create world class cold storage infrastructure Inthe country to provide complete cold chain logistics solutions to the variousstakeholders in this field.
Due to changed business dynamics with implementation of Goods and Service Tax (GST)customized storage requirements intense competition with un-organized sector it had beendecided In the year 2018 to Re-engineer the Rai facility in two phases for development asan Agri-logistics Centre with changed business model of leasing/renting out thewarehousing space for Cold Storage CA storage and Custom Bonded Warehousing to interestedparties.
Under the first phase CONCOR infused a sum of Rs. 13 .45 Cr. towards modification ofexisting infrastructure in order to make the facility more versatile and suitable forstorage of variety of products apart from Apple. Major modifications like erection ofmezzanine floors in chambers to facilitate lot-wise storage of cargo fixing of smalldoors in chambers to minimize refrigeration loss and temperature fluctuations duringarrival & dispatch of cargo installation of temperature indicators outside thechambers to enhance confidence of clients installation of equipments for potato storagehave already been carried out. Also 1/3rd of the facility (26 chambers) was converted inCustom bonded warehouse which is one of the first-of-its kind in Delhi/NCR region. Thusthe first phase is near to its completion.
Further CONCOR has invested a sum of Rs.5.46 Cr. in July 2021 towards partial fundingof second phase of Re-engineering Plan of FHEL. With such capital infusion issuedsubscribed and paid up equity share capital of FHEL increased from Rs.215.01 Cr. toRs.220.47 Cr in July 2021. Construction work for the second phase has also started and islikely to be completed in December 2021.
The financial year 2020-21 has been full of turbulence due to Covid Pandemic. Despiteall the hardships the facility was running throughout the year. During the year FHELincreased its customer base from 100 to 142 and also enhanced the range of products beingstored. These initiatives are likely to yield rich dividend in the coming years. As on15-6-2021 66 chambers (19 custom bonded and 47 cold stores) were rented out for storageof Apples Kiwi Dates Malta Fruit Syrup Pears Grapes Almonds Walnuts etc.
During the year under review Operating turnover of your Company increased fromRs.229.92 Lakhs in F/Y 2019-20 to Rs.402.01 lakhs in F/Y 2020-21. Total income of Companyaugmented from Rs.295.87 Lakhs in FY 2019-20 to Rs.444.38 lakhs mainly due to increasedoperations during FY 2020-21. The Company earned operating profit of Rs.38.47 Lakhs in FY2020-21 as against operating loss of Rs.63.14 Lakhs in FY 2019-20.
In order to expand its span of operations and make its presence felt in Air cargobusiness with a view to establish itself in this Industry CONCOR had formed CONCOR AirLtd. (CAL) in the year 2012. It is 100% subsidiary of CONCOR and has an authorised sharecapital of Rs.50 crores. The objectives of CAL are:
To undertake Air Cargo related activities in International as well as Domestic circuit.
To contribute in the development of Air Cargo business of the country by providing endto end solution to the customers through the mode of bonded trucking of Import/Exportcargo from the various hinterlands to the Airports. To provide warehousing facilities toInternational & Domestic Air Cargo and to facilitate the clearance of EXIM &Domestic Air Cargo.
CONCOR Air Ltd. has made its presence felt at Chatrapati Shivaji Maharaj InternationalAirport in the field of domestic and international air cargo related activities byentering into concession agreements with Mumbai International Airport Ltd. (MIAL).
In February 2013 for domestic air Cargo concession CONCOR Air Ltd. has entered intoan agreement with MIAL under which SANTACRUZ AIR CARGO TERMIAL (SACT) has been developedby CONCOR Air Ltd. SACT is a State-of-the-art GREEN terminal with ultra-modern facilitiesfor storage of cargo handling screening cold storage etc. SACT was commissioned on09.06.2016. During the year at SACT CAL has handled domestic air cargo of major fiveairlines viz; Indigo Spicejet Vistara Go Air and Air Asia. CAL's InternationalConcession Agreement with MIAL was successfully over and ended in April 2018.
The FY 2020-21 has been very tough across the world due to Covid-19 pandemic and shutdown of economies due to its impact. Airline industry is among the worst hit sectors inIndia. As CAL business is directly related to Aircraft Operations its business has alsobeen equally hit. CAL has earned total Income of Rs.33.70 Crores during FY 2020-21 ascompared to Rs.55.02 crore during the previous year. The paid-up equity capital of thecompany was Rs.36.65 Crores as on 31.03.2021.
However Covid-19 vaccine has also emerged as a hope for quick revival of the economiesacross the world. As economies would revive the volumes are expected to pick-up boostingthe top line and bottom-line of the company.
Board of Directors of CAL and CONCOR have approved the Scheme of Amalgamation which issubject to requisite approvals and requisite agreement with MIAL.
A wholly owned subsidiary company namely CONCOR Last Mile Logistics Limited (CLMLL)with CIN U63040DL2020GOI359792 was incorporated on 06th January 2020. Theobjects of the company are inter-alia to develop Railway goods sheds operate and managefreight terminals/ goods sheds develop warehouses provide first mile- last mileconnectivity and other services related thereto. Its first financial year ended on31.03.2021 its authorised capital was Rs.100 crores and paid up capital was Rs.1 crore.
Subsequent to incorporation of the company Railways decided to invite open offers fromthe market for development & management of goods sheds with short period of lease for5 years hence the very purpose of company's incorporation became redundant. MoreoverCONCOR has created a policy vertical in the name of "Last Mile Connectivity"through which it is already providing First Mile & Last Mile (FMLM) connectivity atits 35 terminals. Therefore providing same services by CLMLL was not desirable as itspurpose was to mainly manage the Railways' goods sheds & provide FMLM services for thecargo getting generated from these goods sheds. Accordingly it has been decided todissolve this company by taking necessary actions as may be required for the same.
Its first financial year ended on 31.03.2021 its authorised capital was Rs.100 croresand paid up capital was Rs.1 crore.
CONSOLIDATED FINANCIAL STATEMENTS:
The Consolidated Financial Statements of the Company prepared in accordance with theprovisions of the Companies Act 2013 and the applicable Indian Accounting Standards (IndAS) forms part of the Annual Report of the Company.
HUMAN RESOURCE MANAGEMENT:
Human Resource Management (HRM) in organizations is designed to maximize employeeperformance to achieve its strategic objectives. HR is primarily concerned with themanagement of people within organizations focusing on policies and systems. Being aprogressive organization CONCOR firmly believes in the strength of its most vital asseti.e. Human Resource.
CONCOR has adopted and aligned its HR strategy vis-a-vis systems & procedurestaking into account the business objectives and competence building needed for theorganization. HR strategy acts as a motivating factor for the employees who contribute tothe core competence of the organization to create a match between the company's futureneeds and the aspirations of individual employees.
CONCOR's HR Philosophy is rooted in encouraging employee empowerment growth anddevelopment of individuals by realizing their potential encouraging innovative ideas andfair distribution of rewards. Its work culture is open and dynamic enabling employees totake initiative in jobs with active support of the top management. It is an employer ofchoice and attracts the best available talent with skill sets required for the growth anddevelopment of the organization.
Right placement and refinement of employees is the primary function after induction bywhich CONCOR HR maintains alignment of individual performance and goals with that ofCONCOR Goals.
Great care is taken to maintain safe and hygienic working climate and to provideworking environment to the employees conducive to their good health. The occurrence ofindustrial accidents is minimal.
CONCOR always endeavour to extend more than the minimum prescribed in statute towardssocial security welfare and working condition. In addition liberal & flexibleallowances and benefits in the form of perks such as residential accommodation telephoneinstruments/service advances and welfare amenities are provided to employees.
The company has a performance oriented culture wherein contribution of every employeeto the organization is measured and suitably rewarded. CONCOR has a robust PerformanceManagement System (PMS). The system promotes CONCOR's philosophy of rewarding andrecognizing meritocracy at all levels and support development of executives through astructured approach woven into the appraisal of the company.
CONCOR has an exclusive training centre to cater to employees' developmental needs. Itconducts both In-house and Specialized topic based trainings as per organizational andemployees needs from time to time. Feedback of employees and reporting authorities isreviewed constructively and accordingly next training calendar is scheduled.
Employees are put to On the Job Training Programmes' and are evaluated to get anunderstanding of the suitability of the employee for his/her right placement and also tounderstand specific developmental needs of employees.
The company provides wider opportunities for growth to its employees. Being a youngorganization with average age of employees at 40 years it has formulated a comprehensivePerformance Management System (PMS) in order to identify not only the job performance ofthe employee but also analysis of employee's behaviour and personality traits undervarious descriptions of personality. It gives an idea of employee's training anddevelopmental needs and thus contributes majorly to the succession planning of theindividual and thereby helps in the analysis of an employee for his placement for aparticular job.
The company have a well defined career succession plan wherein youngprofessionals/managers are being placed as the head of the terminals and departmentsunder mentorship of respective Functional/Area/Cluster Heads at the level of ExecutiveDirector and Group General Manager. The attrition rate in CONCOR is within 2 percent owingto CONCOR's employee welfare and career development policies.
Employee Welfare Measure during Covid Pandemic:
- Formation & Institutionalisation of Health Safety & Environment (HSE)department for mitigating COVID-19 pandemic at CONCOR workplace and ensuring safe workingcondition and COVID appropriate behaviour.
- Disinfection of office spaces and vehicles as per Govt. Of India guidelines onpan-India basis to contain spread of COVID-19. The touch-free sanitizers have also beeninstalled.
- Organising several COVID-19 testing camps for Rapid Antigen/ RTPCR tests foremployees.
- Organising vaccination camps for employees and their dependent family members.
- Procurement of Oxygen concentrators to meet any emergent situation.
- Weekly online sessions are being organised on Management of Post-COVID Stress for themental health and wellbeing of the employees.
- Liberalised policy for reimbursement towards healthcare equipment viz. PulseOximeter BP Monitor machine contact less Thermometer Weighing Machine Steamer Sugartesting Machine and Nebulizer once in two years subject to the combined ceiling limit ofRs.25000/- and ceiling of Rs.5000/- for the individual listed items.
- Reimbursement upto Rs.5000/- towards purchase of sanitizer masks globes etc.
- Provision of availing sick leave without medical certificate in event of COVIDrelated sickness or as care-giver.
- Hybrid working during peak pandemic wave.
- Liberal withdrawal from provident Fund for mitigation of Pandemic disruption.
Sound and healthy Industrial Relations (IR) is the pivot around which the entirebusiness operations revolve. CONCOR believes in community of interests and not inconflicts of interests. Various interest groups strive to further goals in theorganization and resolution of conflicting interests in a positive manner reinforces faithin the system besides imbibing strength to face external threats. CONCOR maintainedindustrial peace and harmony and no man days were lost during the year. PositiveIndustrial Relations (IR) has been the goal of HR department. CONCOR provides two waycommunication participative culture open platforms for discussion for ideas andmotivation of the employees.
CONCOR is a Central Government Public Sector Undertaking (PSU). It follows allGovernment mandates in true spirit. The representation of such categories against thetotal strength of 1400 as on 31.03.2021 is as under:
|Category ||No. of Employees |
|Schedule Caste ||206 |
|Schedule Tribe ||73 |
|Other Backward Classes ||338 |
|Persons with Disabilities (PwDs) ||30 |
|Ex-serviceman ||21 |
Your company continued to excel in fields of its activities and was a proud recipientof the following awards in the year:
CONCOR ranked 207th on the "Fortune India 500" list of 2020.CONCOR is one of the most reliable efficient companies in India. It is well respected forperforming ethically and for being aligned with growing innovative and bespoke customerservices in logistics.
On 18th September 2020 CONCOR terminal at Whitefield received ExportExcellence Award 2020 Best Facilitation Organization from Shri Jagadish Shettar KarnatakaIndustries Minister Federation of Karnataka Chambers of Commerce & Industry.
On 10th December 2020 CONCOR was awarded CII SCALE Award 2020 in thecategory "Container Logistics ICDs CFS Rail and Logistics Park" for CONCOR'sexcellent contribution in the logistics sector and overall growth of economy.
ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION:
The relevant information on conservation of energy and technology absorption stipulatedunder Section 134 of the Companies Act 2013 read with Rule 8 of The Companies (Accounts)Rules 2014 are as under:
For energy conservation and technology absorption virtualization is being done in theservers of major applications which is the latest technology with the objective toreduce hardware power consumption and the cooling requirement. Implementation of MPLSconnectivity in place of VSAT also reduced the power consumption by hardware equipment.
To save power multiple servers are also being controlled through single consoleinstead of having the separate monitors which save power as well as reduce coolingrequirement. Most of the CRT monitors have been replaced by LCD/LED monitors which havereduced the power requirement drastically. Most of the latest CPU/ Monitors / Printers ofdesktops /laptop are configured in power saving mode.
In addition to above to conserve energy and to reduce power requirement/ heatdissipation wherever possible consolidation is practiced as per requirement.
The Company is using fuel efficient Rubber Tyre Gantry (RTG) Cranes and Reach Stackers(RST) Machines for handling of containers usage of fuel efficient power packs to feedpower supply to refrigerated containers while transporting to ports. Further energyefficient Rail Mounted Gantry (RMG) Cranes and improved warehouse design is being used bymaking them more energy efficient.
FOREIGN EXCHANGE EARNINGS & OUTGO:
During the year there were no foreign exchange earnings. The details of foreignexchange outgo are as under:
(Rs. in crore)
|Foreign exchange outgo ||- |
|Import on CIF basis || |
|a) Stores & Spares ||0.51 |
|b) Capital Goods ||201.38 |
RESEARCH & DEVELOPMENT (R&D):
CONCOR has procured 7215 new high capacity containers with special design during FY2020-21 for domestic including Coastal Shipping. CONCOR has handed over a work order fordeveloping 2000 containers to BHEL and Braithwaite and is set to float an open tender formore containers. Further an EoI was been floated for procurement of indigenous containersunder Atam Nirbhar Scheme and open tender for 6000 containers is under process. CONCORhas upgraded 65 rakes of 20 MT to high capacity 22 MT.
No Presidential Directives issued by Govt. were received by CONCOR during the FY2020-21.
There has been considerable progress in the use of Official Language Hindi in Officialwork of CONCOR. The provisions of Section 3(3) of the Official Languages Act have beenfully complied with and letters received in Hindi were also replied in Hindi. All effortswere made to correspond with offices situated in A' B' and C' regionsin Hindi as per targets set by the Department of Official Language.
Quarterly meetings of Official Language Implementation Committee were held regularlyunder the chairmanship of Chairman & Managing Director to review the progress made inpromoting use of Hindi in CONCOR and the decisions taken therein were properlyimplemented. During the year all Area offices including corporate office were inspectedin order to overcome the short comings in use of Hindi in official work. Hindi workshopson various topics were organized in order to create awareness amongst employees in regardto promote use of simple Hindi in their official routine work. CONCOR's website isbilingual and all computers have Unicode facility to work in Hindi.
Hindi Pakhwara was organized from 14th to 28th September 2020. 8 competitions were heldand about 111 officials participated in these competitions. The winners were honored withCash Prize and certificate. A Hindi monolog by bollywood actor Mr Salim Shah was alsoenacted. It was well received by Hindi loving staff of CONCOR.
Total 86 employees including 24 employees from corporate office were given Cash Awardsfor doing their official work in Hindi under CONCOR Rajbhasha Puraskar Yojna' forthe year 2019-20.
Committee of Parliament on Official Language visited CONCOR on 29th Oct2020 to inspect the progress of Official Language in company. The company was well praisedby the Committee on steps taken up for promoting use of Hindi in official work.
CONCOR organized a virtual Slogan Writing Competition' for PSU's under the aegisof Town Official Language Implementation Committee (PSU) Delhi on 11 Dec 2020 in which 23officials from various PSU's participated.
Presently 177 employees of corporate office are proficient in Hindi. These employeeshave been issued with individual order under section 8 (4) of official language Rules 1976for doing their total official work in Hindi.
CONCOR keeps its library enriched by acquiring Hindi Books of reputed authors onvarious streams of Hindi Literature. The Number of books in the Library has increased to2920 in which 2038 are Hindi Books. 77 new Hindi Books were purchased during year 2020.Leading Newspapers as well as monthly and fortnightly magazines continue to be subscribed.To promote original writing in Hindi and familiarize with company's activities aquarterly magazine Madhubhasika' has been published regularly. Good articlespublished in this magazine are also suitably awarded. It is also uploaded on the company'swebsite.
"CONCOR constantly endeavours to optimise probity and integrity among employeesand to promote transparency fairness and accountability in all operational area. TheVigilance Department of CONCOR carries out preventive Participative and punitive actionswith greater emphasis in the preventive and proactive functions. Following activities wereundertaken during the financial year 2020-21.
During the year 2020-21 16 Preventive/Surprise checks/ GTE type checks were conductedat various Regional Offices/ Inland Container Depots/Container Freight Stations. Inaddition cases were investigated on the basis of complaints and other information.Periodic surprise checks were conducted regularly in vulnerable areas of the company.Suitable penal action was taken against erring officials and contractors. An amount ofRs.1.11 crores was recovered from various contractors/customers during the financial year.One majo1 and one minor penalty were imposed during the financial year pertaining toirregularities such as indiscipline dishonesty negligence in performance of duty orneglect of work etc. The departmental action against seven officials is pending as on31.03.2021.
On the suggestion of Vigilance Division respective user departments have issued 11circulars for improvement in systems and procedures. In order to disseminate informationamong field functionaries Vigilance Division organised regular training programmes /workshops in different Regions covering topical issues such as D & A Rules Facets ofVigilance and Civil Engineering Works etc. Vigilance Division has released third editionof the vigilance e-bulletin named "Vig-Darpan". The e-bulletin will serve todisseminate the latest vigilance instructions and showcase best practices in the field ofvigilance in order to create awareness and sensitize all officers and staff to dischargetheir duties consciously meticulously and fearlessly. CONCOR continuously and regularlyendeavours to ensure fair and transparent transactions through technology interventionsand system /process review in consultation with various stake holders.
Vigilance Awareness Week (VAW) was observed in all offices of CONCOR by undertakingvarious activities during the period from 27th October to 02ndNovember 2020. The theme of the Vigilance Awareness Week -2020 was "Vigilant IndiaProsperous India. VAW-2020 was marked by numerous activities/competitions in schoolscolleges universities Gram Sabhas workshops/ interactive sessions etc. Severalworkshops seminars Grievances Redressal Camps were organized involving employeescustomers and contractors/ vendors. Essay slogan writing and debate competitions wereorganised for employees and student community. All the activities during the VAW werecarried out by adhering to strict covid-19 protocol issued by the competent authority fromtime to time.
In order to motivate the employees in recognition to their contribution in vigilancemanagement the award for "Most Vigilant Employee of the year" has beeninstituted and this year the award was jointly awarded to Shri V.S. Hari Addi. OfficerArea-III and Ms. Ambili Vasu Bangabash Asst. Officer (Trg.) on 2nd November2020 in recognition of their integrity and contribution towards cost saving.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 134(5) of the Companies Act 2013 your Directors hereby confirmthat:
i) In the preparation of the annual accounts the applicable accounting standards havebeen followed along with proper explanation relating to material departures.
ii) The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit and loss of the Company for that period.
iii) The Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.
iv) The Directors have prepared the annual accounts on a going concern basis.
v) The Directors have laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively.
vi) The directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
MANAGEMENT DISCUSSION AND ANALYSIS:
The detailed Management Discussion and Analysis forms a part of this report at Annexure-A.
CORPORATE GOVERNANCE & GREEN INITIATIVE:
Your Company has taken structured initiatives towards Corporate Governance & itspractices are appreciated by various stakeholders. Your Company believes in the principlethat good Corporate Governance establishes a positive organizational culture and it isevident by responsibility accountability consistency fairness and transparency towardsits stakeholders. As required under SEBI (LODR) Regulations and DPE guidelines onCorporate Governance a separate report on Corporate Governance practices followed by theCompany forms part of this Report at Annexure-B.
A Practicing Company Secretary has examined and certified your Company's compliancewith respect to conditions enumerated in SEBI (LODR) Regulations and DPE guidelines onCorporate Governance. The certificate required in DPE guidelines and SEBI (LODR)Regulations forms part of this Report at Annexure- C.
As a responsible corporate citizen and to reduce carbon foot print your Company hasactively supported the implementation of Green Initiative'. Electronic delivery ofnotice of Postal Ballot notice of Annual General
Meeting (AGM) and Annual Report along with other communications is being done to thoseshareholders whose email ids are already registered with the respective DepositoryParticipants (DPs) and downloaded from the depositories i.e. NSDL/CDSL and who have notopted for receiving Annual Report in physical form. Accordingly unless otherwise desiredby the shareholders the Company sends all documents to the shareholders viz. Noticeintimation for dividend Audited Financial Statements Directors' and Auditors' Reportetc. in electronic form to their registered e-mail addresses.
In respect of financial year 2020-21 in terms of exemption granted by MCA vide GeneralCircular No. 02/2021 dated 13th January 2021 read with General Circular No. 20/2020 dated5th May 2020; General Circular No. 14/2020 dated 8th April 2020 and General Circular No.17/2020 dated 13th April 2020 and by SEBI Circular no. SEBI/HO/CFD/CMD1/CIR/P/2020/79dated 12th May 2020 and SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th January 2021 due tospread of Covid-19 pandemic Annual Reports are proposed to be circulated among themembers whose email IDs are available with the Company through electronic mode.Accordingly no physical copies of the Annual Reports are being circulated among themembers of the Company.
CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABLE DEVELOPMENT:
CONCOR's social activities in F.Y. 2020-21 continued to be focused on overalldevelopment of society with prime focus on health activities in terms of guidelines issuedby Department of Public enterprises (DPE) and prevailing pandemic conditions. Activitiesin other areas like education skill Development environment sustainability sportsinfrastructure development etc. have also been taken up for the welfare of ourstakeholders ranging from rural areas to CONCOR locations. Some of major activitiesundertaken by company are:
CSR activities in Aspirational districts i.e. Visakhapatnam(AP) Chandauli (UP) &Shravasti (UP) adopted by CONCOR continued in all three districts by taking up educationand health activities including construction of Science labs procurement of healthequipments like x-ray machines cell counter/ bio chemical analyzer ultrasound machinesdigital autoclave digital Hemoglobinmeter providing scooter for ANM workersconstruction of public toilets water ATM/RO plant construction of Asha Ghar/Waiting hall(with toilet) etc. in these districts benefitting thousands of people by theseactivities. Covid-19 awareness campaigns was also organized in the districts of AsifabadChandauli and Shravasti.
In order to create an awareness as well as early detection of cancer among lower startaof society cancer detective camps and hand holding with cancer patients have also beenorganized in Delhi Visakhapatnam and Hyderabad benefitting thousands of such patients.Mobile medical camps have been organized in various parts of Delhi benefitting more than10 thousands persons having less access to medical facilities.
Skill development activities were initiated in Logistic & essential services inChennai (Tamilnadu) and Patiala (Punjab) which is to benefit approximately 700 youths and1000 women.
Free distribution of ration and food packets to labours daily wagers stranded laboursetc. was extensively taken up in states of Uttar Pradesh Delhi Madhya PradeshMaharashtra Gujarat Rajasthan West Bengal Karnataka benefitting more than 10000 suchpersons during the lockdown period in FY 2020-21.
In order to promote sanitation among masses support was provided towards constructionas well as maintenance of toilet blocks in Western Railway and Uttar Pradesh.
Environment activities have been taken up in Gaya district of Bihar by providing solarelectrification to a village benefitting 320 families as well as research has beenconducted by TERI in order to study environment sustainability. Water shed developmentactivity has been taken up in Mulumuru of Vizag district in 1000 hectare area which willbenefit thousands of villagers as well as water conservation in the area.
Infrastructure Development of schools continued in CONCOR CSR activities coveringShravasti(UP) Purnia(Bihar) Gauatambudh Nagar(UP) Ghazipur (UP) and Kannur (Kerala)Khatuwas (Rajasthan) districts and Delhi state in which construction and maintenance ofclassrooms etc. have been taken up benefitting thousands of school children.
Support to underprivileged section of society in acquiring quality education continuedto be focus area of CONCOR CSR activities. Poor students from Eastern Uttar Pradeshdistricts were supported for pursuing JEE and other exams by providing free coachingincluding boarding and lodging facility. Similarly school for slum children was supportedfor its maintenance and running benefitting 300 such children in Delhi.
CONCOR provided two refrigerated trucks for Covid 19 vaccine transportation One toGovernment Medical Store Depot (GMSD) Karnal and another to Government Medical StoreDepot (GMSD) Chennai.
CONCOR supported towards health of dependents of war widows by contributing in ArmedForces Flag Day Fund benefitting 500 such dependents.
CONCOR contributed an amount of Rs.25 crores in PM CARE Funds towards supplementingGovt. efforts to fight Covid-19 pandemic.
In terms of funds allocated as per Companies Act 2013 including unspent balance ofprevious year towards CSR Expenditure for FY 2020-21 an amount of Rs.45.82 crores hasbeen utilized towards various CSR activities during the year.
In order to fight Covid-19 CONCOR under its CSR activities continued to serve societyin the current year as it did in the previous year by providing COVID related variousequipment's such as 186 oxygen concentrators 5 ventilators and other medical equipment'sto the various hospitals of Delhi Hyderabad Visakhapatnam Chennai Mumbai KolkataJaipur Balaghat etc. involving an expenditure of Rs.2.96 crs. giving a great relief topatients suffering in 2nd wave of Covid.
In order to check the spread of Covid-19 CONCOR took major steps to vaccinate itsstakeholder in and around Delhi area more than 3300 persons have been vaccinated andanother around 6000 doses will be contributed.
Similar vaccination activity has been conceived to be implemented on all its megaterminals of CONCOR to cover maximum number of stakeholders under CSR activities.
CONCOR has stood to the needs of its stakeholders in this critical time of pandemic byextending all possible help to its stakeholders and would continue to discharge the samein succeeding financial years to society.
As per the requirement of SEBI (LODR) Regulations 2015 the Company is having a Boardlevel Risk Management Committee. The particulars of Committee are stated in the CorporateGovernance Report forming part of this Report. The Company has a well laid down RiskManagement (RM) system to identify evaluate risks and opportunities. The said systemseeks to create transparency minimize adverse impact on the business objectives andenhance the Company's competitive advantage. The risk management system defines the riskmanagement approach across the enterprise in various business activities. The RM structurehas different risk models which help in identifying risk trends exposure and potentialimpact analysis at Company level and also separately for business segments. It forms anintegral part of the Company's functioning and the Board of Directors are being regularlyapprised about the status of various risk elements and the mitigation plans for the same.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
CONCOR's Internal Control Systems are commensurate with its size scale and complexityand nature of its business activities. Internal audit constitutes an important element inoverall internal control systems of the Company. The scope of work of the internal auditis well defined and is very exhaustive to cover all crucial functions and businesses ofthe Company. The internal audit in the Company is carried out by the independentprofessional firms appointed for this purpose.
The respective department of the Company monitors and evaluates the efficacy andadequacy of internal control system in the Company its compliance with operating systemsaccounting procedures and policies. Based on the report of internal auditors necessarysteps are taken at regular intervals to further strengthen the existing systems andprocedures. The significant observations of internal auditors and corrective actionsthereon are presented to the Audit & Ethics Committee of the Board at regularintervals. In addition the implementation and effectiveness of internal financialcontrols during 2020-21 was also reported by the internal and statutory auditors of theCompany.
PARTICULARS OF EMPLOYEES:
As per provisions of section 197 of the Companies Act 2013 read with the Rule 5 of theCompanies (Appointment and Remuneration of Managerial Personnel) Rules 2014 every listedcompany is required to disclose the ratio of the remuneration of each director to themedian employee's remuneration and such other details as may be prescribed in theDirectors' Report. However as per Notification No. GSR 463(E) dated 5th June2015 issued by the Ministry of Corporate Affairs Government Companies are exempted fromcomplying with provisions of section 197 of the Companies Act 2013. Therefore CONCORbeing a Government Company such particulars are not included as part of Directors'Report.
Being a Government Company the Comptroller & Auditor General (C&AG) of Indiahad appointed Company's Statutory Auditors for the financial year 2020-21. M/s. S. N.Nanda & Co. Chartered Accountants were appointed as Company's Statutory Auditors forthe year 2020-21. The statutory auditors were appointed by C&AG vide its letter No.CA.V/COY/CENTRAL GOVERNMENTCCIL(1)/72 dated 10.08.2020. The Statutory Auditors of theCompany is being paid fee of Rs.2750000/-. The Statutory Auditors have audited theAnnual Financial Statements of the Company for the financial year ended on 31.03.2021.
The Comments of C&AG for the financial year 2020-21 along with the StatutoryAuditors Report of your Company and management replies are being provided elsewhere inthis Annual Report. Further CONCOR is not required to maintain cost records as requiredunder section 148 of Companies Act 2013 and rules made thereunder.
BOARD OF DIRECTORS:
CONCOR being a Government Company the appointment of directors on its board arecommunicated by the Ministry of Railways from time to time. During the financial year2020-21 six meetings of the Board of Directors were held for transacting variousbusinesses. During the year and upto the date of this report the directorship in theCompany are under:
- Shri V. Kalyana Rama Chairman and Managing Director [DIN: 07201556]
- Shri Pradip K. Agrawal Director (Domestic Division) [DIN: 07557080]
- Shri Sanjay Swarup Director (Intl. Mktg. & Ops.) [DIN: 05159435]
- Shri Rahul Mithal Director (Projects & Services) [DIN: 07610499]
- Shri Manoj K. Dubey Director (Finance) & CFO [DIN: 07518387]
- Shri Manoj Singh Govt. Nominee Director [DIN: 08898995] (w.e.f. 30.09.2020)
- Shri Rajesh Argal Govt. Nominee Director [DIN: 09171980] (w.e.f. 13.05.2021)
- Shri Jaya Sankar M.K. Independent Director [DIN: 08523769]
- Shri Sudheer Kumar Govt. Nominee Director [DIN: 01429832] (w.e.f. 12.05.2020 upto30.06.2020)
- Shri Manoj Kumar Srivastava Govt. Nominee Director [DIN: 06890877] (upto 18.09.2020)
- Ms. Vanita Seth Independent Director [DIN: 07944119] (upto 19.09.2020)
- Shri Lov Verma Independent Director [DIN: 07560071] (upto 19.09.2020)
- Shri Anjaneya Prasad Mocherla Independent Director [DIN: 03645659] (upto 19.09.2020)
- Shri Ashutosh Gangal Govt. Nominee Director [DIN: 07057313] (w.e.f. 27.08.2020 upto27.10.2020)
- Shri Deepak Shetty Independent Director [DIN: 07089315] (upto 13.07.2021)
In terms of provisions under SEBI Regulations and DPE guidelines CONCOR being a listedCompany and having an executive chairman 50% of its Board of Directors should comprise ofindependent Directors however the company was not having requisite number of thesedirectors during the year. Further CONCOR is also required to have at least oneIndependent woman Director on its Board. However the company was not having requisitenumber of Independent Directors including one such woman Director since 20.09.2020. TheSecretarial Auditor has also given observations in this respect in their report. In thisrespect as Directors on the Board are appointed by Government CONCOR had regularlyrequested Ministry of Railways for appointment of requisite number of independentdirectors/independent woman director to comply with the applicable requirements under SEBI(LODR) Regulations DPE Guidelines and Companies Act.
RETIREMENT OF DIRECTORS BY ROTATION:
As per the Companies Act 2013 the provisions in respect of retirement of Directors byrotation will not be applicable to Independent Directors. In view of this no IndependentDirector is considered to be retiring by rotation but all other directors will be retiringby rotation. Accordingly one third among all other directors namely Shri Rahul MithalDirector (Projects & Services) and Shri Manoj Kumar Dubey Director (Finance) &CFO are liable to retire by rotation and being eligible offer themselves forreappointment.
EVALUATION & REMUNERATION:
As per Section 134 (3)(p) of the Companies Act 2013 the Board's Report of a ListedCompany shall include a statement indicating the manner of formal annual evaluation ofBoard Individual Directors etc. Ministry of Corporate Affairs has vide its notificationdated 5th June 2015 notified the exemptions to Government Companies from theprovisions of the Companies Act 2013 which inter-alia provides that Sec. 134(3)(p)regarding statement on formal annual evaluation shall not apply to Government Companies incase the Directors are evaluated by the Ministry which is administratively in-charge ofthe company as per its own evaluation methodology. Further it has been provided that theprovisions of Sub-Sections (2) (3) & (4) of Sec. 178 regarding appointmentperformance evaluation and remuneration shall not apply to Directors of GovernmentCompanies.
In terms of notification dated 05.07.2017 issued by MCA the provisions in Schedule IVof the Companies Act 2013 about reviewing the performance of Chairperson andnon-independent directors and the Board as a whole by the Independent Directors in theirseparate meeting and that on the basis of performance evaluation of Independent Directorsit shall be determined whether to extend or continue their term of appointment shall notapply to a Government Company if the requirements in respect of same are specified by theconcerned Ministries or Departments of the Central Government and such requirements arecomplied with by the Government Companies. In view of above since the appointment of theall Directors in the Company is decided by the Govt. of India the requirement related toevaluation of directors as stated in Schedule-IV are not applicable to CONCOR.
CONCOR is a Government Company under the administrative control of Ministry ofRailways. The selection procedure for all the directors is also laid down by theGovernment of India and all the directors of the company have been appointed in accordancewith the said procedure. The functional directors including CMD are selected on therecommendations of PESB in accordance with the procedure and guidelines laid down by Govt.of India. Its Board of Directors are appointed by Ministry of Railways and there is systemand procedure laid down by Department of Public Enterprises for evaluation of itsfunctional directors including Chairman and Managing Director. The evaluation frameworkfor assessing the performance of functional directors comprises of the following keyareas:
Performance of the company under the MOU signed with Ministry of Railways. Performancewith respect to the targets fixed for the respective director.
The evaluation includes self evaluation by the respective board member and subsequentassessment by CMD for the functional directors and thereafter final evaluation by theMinistry of Railways the administrative ministry. In respect of CMD the evaluationincludes self evaluation and final evaluation by the Ministry of Railways.
In respect of Government nominee directors their evaluation is done by the Ministry ofRailways as per the laid down procedure.
The induction of officers at below board level is made by way of recruitment promotionand/or lateral entry by way of deputation/immediate absorption of the officials fromMinistry of Railways Govt. Departments and other PSUs.
The performance of below Board Level Officials at Group General Manager and ExecutiveDirector Grades is evaluated on the basis of criteria laid down by DPE in which theachievement of MOU targets as approved by Administrative Ministry and DPE is given dueweightage.
CONCOR follows a robust Performance Management System (PMS) in compliance with the DPEinstructions for evaluation of performance of its officials in Sr. General Manager andbelow grade. Format for evaluation comprises broad parameters for assessment of personaltraits of the officials and contribution towards financial performance of theorganization. The Key Result Areas (KRAs) are proposed by the appraise and approved byappraiser in the beginning of the year which is subject to mid-year review for furthermodification/improvement if any. For the payment of Performance Related Pay (PRP) as perDPE guidelines/instructions the performance rating of an individual officer isconsidered.
CONCOR being a Government company the remuneration payable to its functional directorsincluding CMD senior management officials and all other employees is in accordance withthe guidelines issued by Department of Public Enterprises (DPE) in pursuance ofrecommendations of the committee on pay revision. For fixation of remuneration at workmenlevel CONCOR adopts collective bargaining method with registered trade union of workmen.For supervisors & officers pay scales have been designed in a progressive way and allstatutory compliances in this regard are being adopted and followed. It is being takencare of that no employee gets stagnated.
The Nomination and Remuneration Committee had taken note of the remuneration policy ofthe company and the procedure and policy for selection of the Directors Senior Managementand their remuneration.
RELATED PARTY TRANSACTIONS:
The related party transactions that were entered into during the year were on an arm'slength basis and were in the ordinary course of business. Omnibus approval of the Audit& Ethics Committee is being taken for the related party transactions which are offoreseen and repetitive nature. The transactions entered into pursuant to the omnibusapproval so granted are placed before the Audit & Ethics Committee and the Board ofDirectors on a quarterly basis. The policy on material related party transactions asapproved by the Board has been uploaded on the Company's website athttp://www.concorindia.co.in/assets/pdf/ CONCOR_Policy_MRPT.pdf. Though there are nomaterially significant related party transactions entered by the Company the particularsas required under section 134(3) of the Companies Act 2013 are as per Annexure-E tothis report.
Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed M/s Amit Agrawal & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company. The Secretarial Audit Report from theauditor is annexed as Annexure-F to this report.
The Secretarial Auditor as well as the Auditor who has given Corporate GovernanceCompliance certificate had observed that the Company was not having adequate number ofindependent directors and one woman independent Director during the year. The remarks ofthe directors on the same are that the independent directors in the Company are appointedby President of India through Ministry of Railways Government of India. The Company hasregularly requested Ministry of Railways Government of India for appointment of requisitenumber of independent directors including woman Director on its Board.
A copy of the annual return is placed on the website of the company atwww.concorindia.co.in. In addition statement pursuant to Section 129 of the CompaniesAct 2013 (AOC-1) relating to Subsidiary Companies and Joint Ventures is as per Annexure-G.
PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:
During the year your Company has made investments into its subsidiaries/joint workinggroups. The particulars of which are as under:
(Rs. in Crore)
|S. No. Name of Company ||Loan/Investment ||Amount |
|1. M/s Punjab Logistics Infrastructure Ltd. ||Preference shares (Redeemable) ||5.10 |
|2. M/s Angul Sukinda Railway Ltd. ||Equity Investment ||52.00 |
Your Company has not accepted any deposits from public as envisaged under Sections 73to 76 of Companies Act 2013 read with Companies (Acceptance of Deposit) Rules 2014.
For the purpose of Long term Non-Fund based Bank Facilities (Rs.462 crore) and IssuerRating the Company's credit rating is [ICRA] AA+ by M/s ICRA Limited. For the purpose ofLong term Fund based facilities (Rs.9000 crore) (a) ICRA Limited assigned rating [ICRA]AA+; and (b) Brickwork Ratings assigned BWR AA+. For the purpose of Short term Fund basedBank facilities (Rs.1500 crore) Brickwork Ratings assigned BWR A1+.
DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION PROHIBITION ANDREDRESSAL) ACT 2013:
Container Corporation of India Ltd. (CONCOR) complies with the provisions of the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013 and anInternal Compliant Committee has been constituted under the Act.
Container Corporation of India Ltd. (CONCOR) prohibits any kind of Act of SexualHarassment at Work Place and included the acts amounting to Sexual Harassment at Workplacein its Conduct Rules and Certified Standing orders and Discipline & Appeal Rules so asto prohibit any such Act. CONCOR constituted an Internal Complaints Committee in the year2003 to receive and investigate complaints related to "Sexual harassment atworkplace" following the guidelines issued by Hon'ble Supreme Court of India in"Visakha Vs. State of Rajasthan".
The Internal Complaints Committee' consists of four members at the senior levelincluding one external female member who is an advocate on record of Hon'ble Supreme Courtof India. CONCOR has 167 female employees out of total 1400 employees. The company hascreated a conducive work environment free from any kind of harassment. During the year2020-21 no compliant was received from any female employee.
CEO & CFO CERTIFICATION:
Pursuant to provisions of Regulation 17(8) of the SEBI (LODR) Regulations certificatefor the year under review from Shri V. Kalyana Rama Chairman and Managing Director andShri Manoj Kumar Dubey Director (Finance) & CFO was placed before the Board ofDirectors of the Company at its meeting held on 21.05.2021. A copy of the said certificateon the financial statements for the financial year ended 31st March 2021 is asper Annexure-H.
BUSINESS RESPONSIBILITY REPORT (BRR):
For describing the initiatives taken by the companies from Environmental Social andGovernance (ESG) perspective under SEBI (LODR) Regulations it has been mandated that thetop 1000 listed entities based on market capitalisation to include BusinessResponsibility Report (BRR) as part of the Annual Report. SEBI has provided the format forBRR reporting in which it has elaborated a disclosure framework mapping Company'sperformance on the nine Principles and Core elements. In this respect a brief of actionson the ESG front along with Business Responsibility Report (under SEBI (LODR) Regulations)are at Annexure- I.
CODE OF CONDUCT:
The Code of Conduct has been laid down for the Board Members and senior management. Acopy of the same is available on the website of the Company.
Based on the affirmation received from Board Members and Senior Management Personnelit is hereby declared that all the members of the Board and Senior Management Personnelhave affirmed compliance of Code of Conduct for the financial year ended on 31.03.2021.
Your Directors express their gratitude for continued co-operation support and guidancein effective management of Company's affairs and resources provided by Government ofIndia in particular the Ministry of Railways Customs Ports and above all the customerswho have continued to patronize the services provided by your Company.
The Directors also place on record their sincere appreciation for the continued supportand goodwill of the esteemed Shareholders Institutions State Governments where Companyoperates or is planning to expand its business and all other agencies who have helped yourCompany in delivering excellent performance.
Your Directors acknowledge the constructive suggestions received from Auditors andComptroller and Auditor General of India and are grateful for their consistent support andhelp.
Your Directors would like to place on record its deep and sincere appreciation for thehard work dedication valuable contribution and unstinted efforts by the team CONCOR forthe excellent performance during the year and for creating a platform to achieve greatersuccess in future.