Mishra Dhatu Nigam Ltd
Directors Reports
The Members,
Mishra Dhatu Nigam Limited
Dear Members,
Your Directors take great pleasure in presenting the 49th
Annual Board's Report, highlighting the performance and achievements of your Company,
along with the Audited Financial Statements (Standalone & Consolidated) for the FY
ended on March 31, 2023.
1. SIGNIFICANT ACHIEVEMENTS:
• Achieved highest ever revenue of H 87,194.14 Lakh for FY 2022-23
registering a Year-on-Year (Y-o-Y) growth of 1.45% vis-?-vis revenue of H 85,949.02 Lakh
achieved for FY 2021-22.
• Achieved highest ever Value of Production (VoP) of H 1,10,026.63
Lakh for FY 2022-23 registering a Y-o-Y growth of 8.55 % vis-?-vis VoP of H 1,01,358.59
Lakh achieved for FY 2021-22.
2. HIGHLIGHTS OF OPERATIONS:
• MIDHANI has achieved a significant milestone by successfully
manufacturing Titan 31 plate for the qualification of the Wide Plate Mill, specifically
catering to the requirements of VSSC (Vikram Sarabhai Space Centre) - ISRO for the
prestigious Gaganyaan Mission. This successful endeavor marks the first-time production of
Titan 31 plate, showcasing MIDHANI's technical expertise and its crucial role in
supporting India's ambitious space exploration program.
• MIDHANI has successfully manufactured Superni C-276 (Haste
Alloy), a corrosion-resistant nickel-based alloy. This alloy was specifically produced to
meet the requirements of BHEL (Bharat Heavy Electricals Limited) for their Flue Gas
Desulphurization (FGD) application, emissions.
aimed at controlling SO
2
• MIDHANI has successfully supplied feedstock and mill forms of
high-temperature alloys for the prestigious Kaveri dry engine program. These alloys play a
critical role in the development of advanced propulsion systems and are specifically
designed to withstand extreme temperatures and harsh operating conditions.
• MIDHANI completed development and certification of Superni 115
LPT blade blank for aeroengines. Additionally, MIDHANI completed development and
certification of Titan 26M, a Titanium alloy capable of withstanding temperatures up to
520?C under creep conditions as against the previously limited temperature threshold of
450?C for the alloy.
• The newly established armour unit at Rohtak, Haryana has
commenced production and successfully delivered 15 bulletproof vehicles of the Isuzu
Shaurya model to the J&K police. Additionally, 47 MIDHANI Twarit model vehicles were
dispatched to the J&K police. The unit has also supplied composites for mine-proof
vehicles to AVNL's- (Armoured Vehicle Nigam Limited), Vehicle Factory, Jabalpur.
3. FINANCIAL HIGHLIGHTS:
3.1 Your Company achieved a revenue of H 87,194.14 Lakh for
FY 2022-23 vis-?-vis revenue of H 85,949.02 Lakh achieved for FY
2021-22. Company achieved Operating Profit of H 17,876.78 Lakh for the FY 2022-23
vis-?-vis Operating Profit of H 20,781.36 Lakh achieved for FY 2021-22.
3.2 Profit Before Tax (PBT) for FY 2022-23 of your company was H
21,654.92 Lakh vis-?-vis PBT of H 23,911.98 Lakh for
FY 2021-22 and Profit After Tax (PAT) of H 15,587.61 Lakh for the FY
2022-23, vis-?-vis H 17,630.77 Lakh achieved for FY 2021-22. The reduction in profit for
FY 2022-23 is mainly attributable to increase in depreciation cost as projects like Wide
Plate Mill, 8T VIM & Rohtak facility were capitalized.
3.3 Your Company achieved the following results during FY 2022-23:
(Figures in Rs Lakh)
Particulars |
FY 2022-23 |
FY 2021-22 |
| Revenue from Operations |
87,194.14 |
85,949.02 |
| Other Income |
3,778.14 |
3,130.62 |
Total income |
90,972.28 |
89,079.64 |
| Less: Operating Expenditure |
61,443.70 |
59,718.16 |
| Profit before Depreciation, Finance Costs,
Exceptional items and Tax Expense |
29,528.58 |
29,361.48 |
| Less: Depreciation/ Amortization/ Impairment |
5,300.45 |
3,299.53 |
| Profit before Finance Costs, Exceptional
items and Tax Expense |
24,228.13 |
26,061.95 |
| Less: Finance Costs |
2,573.21 |
2,149.97 |
| Profit before Exceptional items and Tax
Expense |
21,654.92 |
23,911.98 |
| Add/(less): Exceptional items |
- |
- |
Profit before Tax Expense |
21,654.92 |
23,911.98 |
| Less: Tax Expense (Current & Deferred) |
6,067.31 |
6,281.21 |
Profit for the year (1) |
15,587.61 |
17,630.77 |
Other Comprehensive Income/(loss) (2) |
(7.74) |
60.62 |
Total Comprehensive Income (1+2) |
15,579.87 |
17,691.39 |
Ratios (Percentages) |
|
|
| Profit Before Tax to Capital employed |
16.00 |
19.62 |
| Profit Before Tax to Revenue from operations |
24.84 |
27.82 |
| Profit After Tax to Net Worth |
12.12 |
14.81 |
| Profit After Tax to Paid-up Share Capital |
83.20 |
94.11 |
| Sales to Capital Employed |
64.42 |
70.54 |
| Sales to Gross Block |
71.00 |
78.26 |
| Per Capita Sales (H in Lakh) |
116.10 |
111.62 |
4. DIVIDEND POLICY:
4.1 The Board of Directors of your Company are pleased to recommend a
final dividend of H 1.67 per equity share of the face value of H 10/- each i.e., @ 16.70%,
for the financial year ended on March 31, 2023 and seek your approval for the same. The
proposed final dividend, will be payable to those shareholders whose names appear in the
Register of Members as on the ‘Record Date' i.e. September 22, 2023. 4.2
Further, during the year under review, the Board of Directors of the Company in their
Meeting held on March 15, 2023 has declared and paid interim Dividend of H 1.68 per equity
share of the face value of H 10/- each i.e. @ 16.80%. The interim Dividend was paid to the
eligible shareholders on March 29, 2023. 4.3 Cumulatively, the Board of Directors of your
Company has declared / recommended a total Dividend of H 3.35 per equity share of the face
value of H 10/- each i.e. @ 33.50% for the year ended on March 31, 2023. At 40.26% of
Profit After Tax (PAT) this is the highest dividend pay-out by the Company.
4.4 Your Company, being a Central Public Sector Enterprise (CPSE),
adheres to the Guidelines on Capital Restructuring issued by the Department of Investment
and Public Asset Management (DIPAM) under F. No. 5/2/2016-Policy, dated May 27, 2016.
These guidelines mandate that every CPSE must pay a minimum annual dividend of 30% of
Profit After Tax (PAT) or 5% of the Net Worth, whichever is higher, subject to the maximum
dividend permitted under the prevailing legal provisions. The Company's comprehensive
dividend distribution policy forms part of Annual Report as "Annexure - I"
and is also accessible on the official website of the Company at
https://midhani-india.in/policies/. "
4.5 The performance of MIDHANI with respect to the Return on Investment
in comparison to the previous year is as under:
(Rs in Lakh unless otherwise stated)
S. No |
Parameters |
FY 2022-23 |
FY 2021-22 |
| 1. |
Dividend |
6,275.89 |
5,807.54 |
| 2. |
Profit After Tax (PAT) |
15,587.61 |
17,630.77 |
| 3. |
Net Worth* |
1,25,405.13 |
1,16,093.41 |
| 4. |
Dividend/PAT (%) |
40.26 |
32.94 |
| 5. |
PAT/Net Worth (%) |
12.43 |
15.19 |
| 6. |
Dividend/Net Worth (%) |
5 |
5 |
*Net worth is after considering Dividend for respective periods.
5. TRANSFER TO GENERAL RESERVE:
Your Company has transferred H 10,000 Lakh to General
Reserve for the FY 2022-23.
6. PERFORMANCE AGAINST MoU:
For FY 2022-23, MIDHANI's MoU performance is expected to qualify
for an overall ‘Very Good' rating, however, the same is subject to evaluation
and confirmation by Department of Public Enterprises (DPE).
7. MODERNISATION, EXPANSION & UPGRADATION PROGRAM OF THE
COMPANY:
7.1 Over the past years, the Company's continued focus on upgradation
and modernization has resulted in the establishment of additional facilities, increased
production tonnage capacity, and enhanced product diversity. As a result, MIDHANI has
effectively positioned itself to cater to the needs of both existing and new customers in
domestic and global markets, while also venturing into new strategic and nationally
significant business areas.
7.2 The following projects pertaining to the modernization, expansion,
and upgradation of MIDHANI's production activities were successfully commissioned during
the year ended on March 31, 2023:
• Development of Armour unit at Rohtak:
• To meet the growing demand for body armor, vehicle armor,
bulletproof Morcha, and bullet-resistant jackets, MIDHANI has established a
state-of-the-art unit in Rohtak, Haryana. The completion of the major construction
activities in Phase-I and Phase-II marks a significant milestone in the unit's
development.
• During FY 2022-23, MIDHANI's Armor Unit achieved remarkable
success, generating revenue of H 2,998.28 Lakh. This performance is a testament to the
unit's dedication to quality and its ability to meet the market demands effectively.
• The establishment of this new unit in Rohtak not only
strengthens MIDHANI's presence in the armor industry but also contributes to the local
economy by creating job opportunities and fostering growth in the region. MIDHANI's Armour
unit is well-positioned to capitalize on the increasing demand for body armor and armor
related products in the domestic and international markets.
• New 8T capacity Vacuum Induction Melting Furnace (8T VIM):
Melt Shop-III has state-of-the-art addition to its infrastructure - an advanced 8T
Capacity Vacuum Induction Melting Furnace (8T VIM). The successful commissioning of this
cutting-edge facility marks a significant milestone for the company, as it not only
enhances production capabilities but also reduces dependency on the older VIM, which had
been in continuous use. Addition of this furnace is expected to reduce delivery timelines,
thereby allowing MIDHANI to meet customer's demand for superalloy more effectively.
• 300 Kg Vacuum Arc Skull Melting Furnace: Installation and
commissioning of 300Kg Skull Melting Furnace was successfully completed. Commissioning of
300Kg Skull Melting Furnace has replaced an old 60 kg capacity furnace. This upgradation
will help MIDHANI in meeting the demand for higher weight Titanium castings, which the old
furnace was unable to fulfill.
7.3 Ongoing projects related to Modernization, Expansion and
Up-gradation of MIDHANI's production activities which will be commissioned during FY
2023-24 are as under:
• Establishment of new Titanium Shop: MIDHANI is
undertaking establishment of a dedicated Titanium melting facility to cater rising demand
for Titanium alloys in naval, space, missile, and export sectors. This facility will
enable MIDHANI to add 500T of Titanium alloys to its annual supply. The facility comprises
a 10T Capacity Vacuum Arc Re-melting Furnace, an indigenously developed Plasma Welding
Machine, and essential infrastructure such as cooling towers, power distribution, and
storage. The facility is undergoing advanced testing,
andcommissioningisscheduledforthesecondquarterof FY 2023-24.
• New 20T & 12T Fixed Hearth Furnace for Forge Shop: MIDHANI
is undertaking significant upgrades in its Forge shop by installing new furnaces to
replace the old fixed hearth reheating furnace. The supply of equipment and erection work
for a 20T furnace has been completed and is undergoing testing. Additionally, the erection
process for a 12T furnace has commenced, with commissioning planned for the third quarter
of FY 2023-24. The introduction of these modern furnaces will greatly enhance
MIDHANI's re-heating capabilities, specifically for smaller size billets. By replacing the
old furnace with higher capacity alternatives, MIDHANI aims to improve efficiency,
productivity, and overall performance of Forge Shop.
• Fasteners Plant: MIDHANI is actively addressing the
demand for smaller size fasteners in the aerospace sector by acquiring specialized
equipment dedicated to aerospace fastener manufacturing. This procurement includes, hot
heading equipment and warm thread rolling machines, both vital additions to our
manufacturing capabilities. These new equipment acquisitions empower us to effectively
serve the domestic aerospace fasteners market, fulfilling the specific requirements of
indigenous projects like LCA-Tejas and HAL-IAF Repair & Maintenance of aircraft. We
aim to deliver high-quality fasteners that meet the stringent standards set by the
aerospace & defence industry.
7.4 Other new projects planned in next two years:
• Metal Powder: MIDHANI is making significant strides
towards achieving self-sufficiency in metal powder production with the establishment of a
Metal Powder Production Unit boasting a capacity of 50 tonne per annum. The successful
completion of the procurement process for the necessary main equipment marks a major
milestone in this endeavor. The primary focus of this facility will be the production of
Titanium and Nickel alloy powders tailored specifically for metal additive manufacturing
applications. Industries such as automotive, aerospace, and bio-medicals will greatly
benefit from these high-quality powders. Currently, there is a heavy reliance on imported
Titanium and Superalloy powders to meet the market demand.
• Compacting press for Titanium sponge: MIDHANI plans to
procure an 8000-tonne capacity hydraulic compacting press along with auxiliary facilities,
molds, electrical and PLC systems, and stacking devices. This press will play a crucial
role in compacting titanium sponge with master alloys, facilitating the production of
titanium electrodes for primary and secondary melting in the Vacuum Arc Remelting furnace.
The estimated timeline for the supply, erection, and commissioning of this equipment is
approximately 20 months. This press will lead to significant enhancement of MIDHANI's
Titanium processing capabilities.
• Augmentation of Bar & Wire drawing facility: To
enhance the capacity and capabilities of the existing Bar & Wire drawing facility,
MIDHANI has undertaken a project for augmentation. The project includes the procurement of
essential equipment such as two ?760 MM heavy-duty bull blocks for coil build-up, two
straight line machines with six heads for wire drawing from 10 mm to 6 mm, a wet drawing
machine for 3 mm to 1.2 mm, and pointing machines to cater to various wire diameter
ranges. Once completed, the upgraded facility will enable MIDHANI to meet growing demand,
improve productivity, and better service its customers in the bar and wire drawing
segment.
• Additional supporting facility for Wide Plate Mill: To
meet the market requirements and enhance the production capabilities of the Wide Plate
Mill, MIDHANI is undertaking setup of additional operations. This includes, procurement of
a One Shot Blasting Machine, One Side Trimmer for Sheets/Plates for edge cutting and
preparation, and a Plasma cutting machine for cutting plates to desired lengths. To
accommodate these new facilities, an extension of the existing DE and EF bay of the Wide
Plate Mill is planned. Additionally, MIDHANI will install a facility for grinding Work
Roll and Back Up Roll. These initiatives will enable MIDHANI to process different grades
of Stainless Steel, Super Alloys, Titanium Alloys, and other high-grade materials.
8. LABOUR PRODUCTIVITY:
The value added per employee during the year was H 94.42 Lakh,
vis-?-vis to H 86.84 Lakh in the previous year.
9. SALES AND OPERATIONAL EFFICIENCY:
The trade receivable, measured in terms of 'No. of Days Sales,' stood
at 132 days as of March 31, 2023, compared to 130 days as of March 31, 2022. The
accumulation of high debtors primarily stems from budget exhaustion at our customers' end,
predominantly PSU's, Government Departments/agencies.
10. DEVELOPMENT OF NEW PRODUCTS THROUGH R&D EFFORTS:
10.1 The foundation of every successful product development lies in
Research and Development (R&D). However, the role of MIDHANI'S R&D department goes
beyond innovation, as it encompasses a broader spectrum of business strategy, including
marketing, cost management, and product enhancement. R&D plays a pivotal role in
creating new products and upgrading existing ones. At MIDHANI, we highly prioritize and
value the significance of R&D in driving our growth and success.
10.2 An expenditure of H 2,026.78 Lakh has been incurred towards
R&D during FY 2022-23. In addition to overseeing the research and development of new
products, the R&D department at MIDHANI is entrusted with the crucial responsibilities
of planning, team management, and deployment of technical infrastructure and manpower to
support specific processes.
10.3 Some of the major R&D initiatives undertaken during the year
are as below:
• Indigenous Product Developments:
• Superfer 909 Hot rolled bars: Superfer 909 is an age
hardenable iron-based superalloy, containing Nickel, Cobalt, Niobium, and Titanium as
alloying elements. With its high strength-to-weight ratio and precise dimensional control
at elevated temperatures, this alloy is exceptionally well-suited for aerospace and
land-based gas turbine engines. It finds its application in rocket engine thrust chambers,
gas turbine engine components such as vanes, casings, and shafts, as well as in medical
care applications. Consequently, it holds significant export market potential. MIDHANI, as
a strategic material developer and supplier, has successfully indigenized this material
for both domestic usage and export purposes.
• Monel K 500 forged and hot rolled bars for Gaganyaan Program:
Development efforts were prioritized with utmost urgency to design components for the
cabin pressurization and control system of the Gaganyaan Crew Module. These components
were specifically engineered to exhibit exceptional resistance to ignition, especially in
the presence of high-pressure oxygen.
• SNI C 276 plates/ Sheets: Alloy C 276 is a
nickel-molybdenum-chromium alloy solid solution, fortified with a small amount of
tungsten. Renowned for its exceptional corrosion resistance, it stands as one of the top
choices for process industries. Alloy C 276 poses significant challenges in
processing. However, MIDHANI has achieved a remarkable feat in successfully developing and
manufacturing this material which was earlier imported.
• Development of new products:
• Heavy forgings slabs of SNI 718 (127 X 590 X900 mm):
MIDHANI has achieved a significant milestone by successfully developing and supplying
heavy forging slabs measuring 127 (T) x 590 (W) x 900 (L) mm to the export market for the
first time.
• Development of Hastelloy X (SNI 76) forged bars:
Hastelloy-X is known for its exceptional high temperature oxidation resistance, making it
a preferred choice for various industrial furnace applications. Additionally, this alloy
finds extensive usage in the manufacturing of critical aircraft components. MIDHANI has
successfully fulfilled an export order by supplying forged bars of Hastelloy-X. This
accomplishment highlights our commitment to delivering superior quality products to meet
the stringent requirements of global customers.
• Development of Ni-Cr-Mo-Ti alloy (MDN 10003) forged & hot
Rolled bars: In collaboration with BARC (Bhabha Atomic Research Centre), MIDHANI has
successfully developed a high-performance alloy, comprising Nickel- Chromium-
Molybdenum-Titanium, specifically designed for the Indian Molten Salt Breeder Reactor
(IMSBR). This achievement showcases our commitment towards ensuring the development of
materials that meet the stringent requirements of critical applications.
• Development of new products:
• Development and supply of superalloy and titanium alloy
for Adour engine:
o Nickel base superalloy-Superni 115A low pressure turbine blade
blank: SUPERNI 115A, a wrought Nickel-based superalloy, serves as a low-pressure
turbine blade in the Adour engine, operating at temperatures up to 980?C. The
manufacturing process for this highly alloyed and narrow working range alloy was developed
meticulously from the initial stages, encompassing melting and hot working techniques. Two
batches comprising 100 blanks were supplied, accompanied by airworthiness certification.
The ongoing execution of the remaining 5000 blanks order has mitigated the risk of single
source dependency on imports.
o Near alpha Titanium alloy-Titan 26A high pressure compressor Disc
Forgings: MIDHANI successfully achieved indigenous bulk production of High-Pressure
Compressor (HPC) discs using Titanium alloy TITAN26A. These HPC discs are critical
rotating components in military aero gas turbine engines. Through a Licensing Agreement
for Transfer of Technology (LAToT) with the Defence Metallurgical Research Laboratory
(DMRL) and collaboration with airworthiness agencies, MIDHANI established the indigenous
production of HPC discs (stage I to V) for the Adour aero engine. During the Transfer of
Technology (ToT) phase, optimization of near isothermal forging and heat treatment
processes was carried out to meet the 450?C creep property requirement.
o Near alpha Titanium alloy-Titan 22A HPC Blade Feedstock: The
Ti-8Al-1Mo-1V alloy is a near-alpha alloy extensively employed in compressor parts of
turbine engines. This alloy features an alpha phase stabilized by aluminum, while the
control over thermo-mechanical processing and mechanical properties is achieved through
the addition of molybdenum and vanadium. The forging process has been meticulously
optimized to prevent cracks during the manufacturing process. As a result, hot rolled bars
of 2.5T material, accompanied by airworthiness certification, have been supplied as
feedstock to produce compressor blades.
• Development and supply of Titanium alloy for airframe
application of Advanced Medium Combat Aircraft (AMCA):
o Titan 31A 120 thick wide slab forging for bulkhead frame: MIDHANI
successfully developed and supplied Centre for Military Airworthiness & Certification
(CEMILAC) CEMILAC certified Titan 31A slabs, measuring 120mm x 1200mm x 1300mm, for the
bulkhead frame of AMCA (Advanced Medium Combat Aircraft). The processing of this material
involved triple melting in VAR (Vacuum Arc Remelting), ingot breakdown, and multiple
upsetting and draw-down operations, with intermediate process annealing. The material
meets stringent Ultrasonic Testing (UT) requirements of class A1 and fatigue requirements
for such wide plates.
o Beta Titanium alloy-Ti5553A forged slabs of 200/300mm thick under
developmental stage for airframes: The Ti-5Al-5Mo-5V-3Cr-0.3Fe Beta alloy, with its
elevated levels of alloying elements, is susceptible to segregation during the melting
process. This alloy exhibits superior strength and hardenability compared to the Ti1023
alloy. MIDHANI has embarked on the development of this grade in response to an order from
DMRL (Defence Metallurgical Research Laboratory). Our ongoing efforts involve optimizing
the properties through a combination of thermo-mechanical processing and heat treatment
techniques.
o Development and supply of material for Kaveri Dry Engine (KDE)
programme of UCAV: MIDHANI successfully produced and supplied 42 tons of feedstock for
forging, along with 27.5 tons of mill forms, comprising high-temperature alloys such as
Titanium alloy and Nickel-based superalloy. These materials were manufactured with strict
adherence to stringent quality criteria, and they obtained airworthiness certification
from CEMILAC. These supplies were specifically intended for the Kaveri Dry Engine (KDE)
program of UCAV (Unmanned Combat Aerial Vehicle).
o Development and supply of titanium alloys for airborne missiles:
MIDHANI developed and certified heats of Titanium alloy grades i.e. Titan 15A, Titan 31
ELI, and Titan 31A for airborne missiles. Notably, the development of Titan 31A thin
sheets (1.5mm thickness) for airborne missile wings was a pioneering achievement in India,
with only a few manufacturers worldwide capable of producing this product. Manufacturing
Titan 31A (Ti-6Al-4V) sheets <4mm posed challenges due to mill limitations in hot
rolling and the frequent annealing required in cold rolling. To overcome these
limitations, a multi-stage pack rolling process was adopted.
o Development & Supply of Titanium grades for Advanced Light
Helicopter (ALH) engine: MIDHANI successfully developed and type-certified Titan 31A
forged feedstock for the rotating parts of the ALH engine. This achievement was
accomplished by utilizing the cost-effective double melting method instead of the more
expensive triple melting route. Through the optimum design of thermo-mechanical processing
routes and strict control over melt parameters, we were able to achieve fatigue properties
comparable to those of the triple-melted grade.
• Artificial Intelligence (AI):
• An AI framework has been established for the purpose of
designing new alloys. As a case study, the framework was implemented to consider the low
thermal coefficient target for the H13 alloy. The results obtained from this
implementation have shown promising progress in the development of H13.
• AI framework can also be extended to other alloys, including
Super alloys and Titanium alloys, to cater for specific applications requiring stringent
properties. By utilizing this AI framework, MIDHANI will significantly reduce the time
required for alloy design and development compared to traditional methods.
• As part of AI roadmap, MIDHANI has taken up new projects such
as:
• Prediction of microstructure of alloys (grain size and phase
fraction) through AI's Computer Vision algorithms,
• Prediction of mechanical properties based on chemistry and
microstructure using artificial neural networks and
• AI enabled Quality Improvement System for Maraging Steel Melting
Process to improve Product UT quality and yield of the final product.
11. INTELLECTUAL PROPERTY:
11.1 The company developed new products to meet the growing market
demand, achieving significant advancements in R&D activities. This progress is evident
through the expansion of the company's intellectual property assets. The products
manufactured by MIDHANI are unique, and to protect against infringement, there was a
strong emphasis on encouraging the application of Intellectual Property Rights (IPRs).
11.2 To foster innovation, a mission-driven initiative was launched to motivate employees
to file patents for their inventions. As a result of this drive 28 patent applications
were filed during FY 2022-23, focusing on product and process improvements. 11.3
Recognizing the crucial role of IPR knowledge in identifying potential patents during the
development phase, our R&D team collaborated with the Training and Development
department to organize comprehensive training sessions. These sessions were conducted both
in-person and online, aiming to educate employees about the importance of IPR and equip
them with the necessary understanding and skills.
12. ENERGY CONSERVATION:
12.1 Throughout the reporting year, MIDHANI remained steadfast in its
efforts towards energy conservation. Our commitment to developing, implementing, and
advocating for sustainable energy solutions remains unwavering. The following are the
energy-saving measures implemented by MIDHANI during FY 2022-23:
• MIDHANI procured dynamic reactive power compensation panels and
transformers to improve the power factor at the MRSS (Material and Reheating Sub-
Station) for the 20T Arc furnace. This implementation is projected to
result in significant electricity bill savings of approximately H 10 Lakh per month.
• Furthermore, the overall power factor has been enhanced from
0.92 to 0.96 through the deployment of DPFC (Dynamic Power Factor Correction) panels and
transformers, with an approximate value of H 300 Lakh. These initiatives underline our
commitment to optimizing energy consumption and reducing costs.
• MIDHANI has established a state-of-the-art solar power plant and
entered into open access agreements with TSSPDCL (Telangana State Southern Power
Distribution Company Limited) and TSTRANSCO (Telangana State Transmission Corporation
Limited) to utilize the generated energy from the 4 MW solar power plant. This year, the
solar power plants have successfully generated solar energy valued at H 258 Lakh. These
initiatives reflect our dedication to harnessing sustainable and renewable energy sources,
contributing to both environmental conservation and cost efficiency.
The summary of consumption of LPG is as under:
Description |
Unit |
FY 2022- 23 |
FY 2021- 22 |
Annual Consumption of LPG |
MT |
5636.24 |
5,473.53 |
Specific consumption of LPG in
production |
MT (LPG)/ MT (Prod.) |
0.14 |
0.18 |
The summary of consumption of Electricity is as under:
Description |
Unit |
FY 2022- 23 |
FY 2021- 22 |
Annual Consumption of
Electricity |
KWHr (in Crore) |
6.52 |
5.40 |
Specific consumption of
Electricity in production |
Kwh/T |
1,565.32 |
1,762.89 |
13. MARKETING & BUSINESS DEVELOPMENT: 13.1 During FY 2022-23,
MIDHANI has booked orders worth H 91,700 Lakh. The open order book position as on
April 1,
2023 stood at H 1,33,104 Lakh. With the current order book and
considering the future orders in pipeline, MIDHANI looks forward to steady growth in the
upcoming years.
The sector wise order booked during FY 2022-23 are as under:
( Rs Lakh)
Sector |
Total value of orders |
| Defence |
70,382.00 |
| Space |
3,351.00 |
| Energy |
10,306.00 |
| Others |
7,661.00 |
Total |
91,700.00 |
13.2 Sector-wise Performance: The total orders executed during
the year under review were H 87,194.14 Lakh and the sector wise sales executed is as
below:
( Rs Lakh)
Sector |
Total value of supplies |
| Defence |
37,204.61 |
| Space |
35,083.33 |
| Energy |
6,968.87 |
| Others |
7,937.33 |
Total |
87,194.14 |
13.3 Business Development:
• In line with its growth strategy, MIDHANI has made strategic
investments in new facilities, including an Armour unit in Rohtak, Haryana, and a
state-of-the-art Wide plate cum sheet mill. These expansions aim to diversify MIDHANI's
customer base beyond the Defense & Space sector, targeting industries such as
railways, inland security, oil and gas pipelines, and the power sector. These initiatives
align with the Government of India's 'Aatma Nirbhar Bharat Abhiyaan,' promoting indigenous
production and offering domestic alternatives for advanced materials, supporting
self-reliance and import substitution.
• Over the years, MIDHANI has been strategically focusing its
exports on Titanium alloys and Superalloys, primarily to stockiest and dealers. However,
the company's consistent efforts in the past three years have yielded positive results by
expanding its customer base to include end-use customers in Europe for Special Steel,
Superalloy, and Titanium Alloys.
• The efforts to obtain industry-specific certifications and
client approvals are expected to have a significant impact on MIDHANI's export performance
in the upcoming years. With the enhanced credibility and recognition gained through these
certifications, MIDHANI aims to experience a substantial leap in its export volumes,
further strengthening its position in the global market.
13.4 Information Technology (IT):
• Continued efforts were made to strengthen the Cyber Security
framework through a Cyber Security Vulnerability Assessment and Penetration Testing (VAPT)
Audit conducted by a Cert-In empaneled agency. Additionally, a ‘Cyber Jagrookta
Diwas' was organized to raise cyber awareness among employees. These initiatives
demonstrate our commitment to ensuring a robust Cyber Security system within the
organization.
• MIDHANI successfully implemented an ERP Online Daily Production
reporting application, enabling accurate day-wise production volume tracking across
various shops. This system also provides cumulative monthly and yearly production tonnage
data. Additionally, a 'Material Tracking System' was implemented to track dispatchable
materials across the shops, as well as monitor the online tracking of inbound and outbound
materials to and from MIDHANI. These systems enhance operational efficiency and streamline
material management processes within the organization.
• During the year under review, the Disaster Recovery (DR) site
setup was made operational at Rohtak Plant and the visitor management system and Hospital
Management systems was also implemented.
• MIDHANI responsibly managed and disposed of approximately 1000
kilograms of IT electronics scrap as e-waste, contributing to a cleaner environment and
sustainable waste management practices.
14. EXHIBITIONS/SEMINARS FOR PROMOTION OF COMPANY PRODUCTS/BRAND:
14.1 During FY 2022-23, MIDHANI participated in two significant
exhibitions: Defexpo 2022, held at Gandhinagar, Gujarat from October 18 to 22, 2022, and
AeroIndia 2023, held at Bangalore, Karnataka from February 13 to 17, 2023. These
exhibitions provided valuable platforms for showcasing MIDHANI's capabilities and engaging
with industry leaders, stakeholders, and potential customers on a global scale. 14.2
MIDHANI hosted a panel discussion on 'Aeronautical Materials' at Hotel The Park, Hyderabad
on December 7, 2022. Dr. G Satheesh Reddy, Scientific Adviser to Raksha Mantri was chief
guest for the event. The panel discussion witnessed the participation of 75 Aeronautical
customers and inspection agencies from prominent organizations such as Hindustan
Aeronautics Limited, Gas Turbine Research Establishment, Aeronautical Development Agency,
National Aerospace
Laboratories, Defence Metallurgical Research Laboratory, Centre for
Military Airworthiness & Certification, Directorate General of Aeronautical Quality
Assurance, among others. This event served as a platform for insightful discussions and
fruitful interactions on the subject of aeronautical materials.
14.3 On December 27, 2022, the Wide Plate Mill was inaugurated by the
Hon'ble President of India, Smt. Droupadi Murmu. The inauguration ceremony included an
exhibition featuring Defence products, with participation from esteemed organizations like
Defence Research and Development Organisation, Bharat Dynamics Limited, Hindustan
Aeronautics Limited, Bharat Electronics Limited, Armoured Vehicles Nigam Limited, and six
start-up companies. The exhibition was also accesible to the general public on December
28, 2022.
15. QUALITY MANAGEMENT ACTIVITIES:
15.1 During FY 2022-23, MIDHANI successfully completed the preparation
and testing of approximately 38,000 various samples for mechanical testing purposes.
Additionally, the company conducted testing on over 15,000 micro samples. These extensive
testing efforts demonstrate our commitment to ensuring the quality and reliability of our
products.
15.2 In August 2022, MIDHANI successfully completed the Surveillance
Assessment for the Certification of its Quality Management System. The assessment was
conducted to ensure compliance with the AS9100:2016 and ISO 9001:2015 standards.
15.3 MIDHANI successfully completed audit for Metrology as a
calibration lab, resulting in the grant of accreditation. Additionally, the renewal audit
of Chemical, Mechanical, and Metallography laboratories was carried out successfully,
leading to the renewal of accreditation by NABL (National Accreditation Board for Testing
and Calibration Laboratories) in March 2023.
15.4 MIDHANI successfully obtained the ISI mark license for the supply
of 300 series stainless steel plates, affirming its adherence to national quality
standards. Additionally, MIDHANI made remarkable progress by establishing the Immersion
Ultrasonic Testing of SF800H Extruded Tubes for the first time.
15.5 MIDHANI successfully demonstrated and established Immersion
Ultrasonic Testing for 0.4mm FBH acceptance criteria in collaboration with DMRL for
DMR-SN-742 grade material, marking a significant milestone as the first of its kind in the
country.
15.6 MIDHANI conducted the inspection and testing of 38 MDN250 plates
within a month. Throughout the FY 2022-23, a total of approximately 209 plates underwent
rigorous testing, inspection, and received clearance.
16. SUPPLY CHAIN MANAGEMENT PERFORMANCE:
16.1 Vendor Meet: MIDHANI organized a Vendor Meet on November 3,
2022, with the aim of facilitating direct interaction with our vendors. The event served
as a platform to showcase the recent developments and product profiles of MIDHANI, while
also providing an opportunity to address any issues faced by the vendors. This
collaborative approach was undertaken to enhance the overall procurement process and
foster stronger partnerships with our valued vendors.
16.2 Encouragement to Micro and Small-Scale Industries:
• MIDHANI remains committed to promoting and supporting Micro and
Small Enterprises (MSE) by actively engaging in sourcing a diverse range of goods and
services from them. In the fiscal year 2022-23, the percentage value of goods and services
procured from MSE units accounted for an impressive 45.02% of the total domestic value of
procurement. This highlights our dedication to fostering the growth and development of MSE
units, as well as our commitment to inclusive and sustainable business practices.
• MIDHANI actively engaged in fostering collaborations with
prominent organizations like FICCI and MSME Development Institute, Hyderabad to expand our
vendor base and include more Micro and Small Enterprises. Furthermore, we actively
participated in MSME exhibitions held at Kota and Hyderabad, which served as important
platforms for networking, knowledge sharing, and exploring potential partnerships with
MSEs. These initiatives highlight our commitment to promoting MSEs and nurturing their
growth within the industry.
16.3 Integrity Pact (IP): In order to uphold transparency and
integrity in all our contracts, MIDHANI has implemented the practice of signing Integrity
Pacts with the respective bidders for high-value contracts. Shri Anand Deep IRS (Retd.)
and Shri Mallikarjuna Rao, IFS (Retd.) act as our Independent External Monitors (IEM) to
ensure compliance and adherence to ethical standards. During FY 2022-23, approximately
85.55% of the total value of contracts and Purchase Orders (POs) were covered under the
Integrity Pact, reaffirming our commitment to maintain integrity and accountability in our
operations.
16.4 eProcurement: To enhance transparency in our procurement
processes, MIDHANI has made significant efforts to maximize the use of eProcurement. We
are proud to report that during the reporting period, approximately 92.4% of our total
procurement, excluding the exempted category, was conducted through the eProcurement mode.
This demonstrates our commitment for leveraging technology for streamlined and efficient
procurement practices, ensuring fairness, competitiveness, and transparency in the
procurement process. By embracing eProcurement, MIDHANI continues to promote a culture of
transparency, accountability, and efficiency in its procurement operations.
16.5 Government e Marketplace (GeM): MIDHANI has made
significant strides in maximizing its procurement through the Government e Marketplace
(GeM) platform. During FY2022-23,MIDHANIreleasedpurchaseordersamountingto H 12,591
Lakh showcasing a multifold increase compared to the GeM procurement value of H 2,660 Lakh
during
FY 2021-22. This highlights our commitment to leveraging the GeM
platform to streamline our procurement processes, enhance efficiency, and promote
transparency in the acquisition of goods and services. By actively engaging with GeM,
MIDHANI is reinforcing its dedication to embracing digital technologies and government
initiatives for a more seamless and robust procurement ecosystem.
17. RISK MANAGEMENT:
17.1 MIDHANI has a comprehensive Risk Management Policy that has been
approved by the Board. The identification and assessment of risks associated with various
processes in MIDHANI have been extensively discussed in the Internal Production Review
Meetings and Corporate Management Committee Meetings. In compliance with Regulation 21 of
SEBI (Listing Obligations and Disclosure Requirements Regulations, 2015), MIDHANI has
established a dedicated Risk Management Committee. 17.2 As part of the Management
Discussion and Analysis section of this Annual Report, a detailed list of the identified
risk elements faced by the Company is enumerated. This ensures transparency and allows
stakeholders to have a comprehensive understanding of the risks involved in MIDHANI's
operations. By actively managing and addressing these risks, MIDHANI remains committed to
safeguarding its interests, promoting sustainable growth, and ensuring the long-term
success of the organization.
18. HUMAN RESOURCE DEVELOPMENT:
18.1. Human Resource Development (HRD) encompasses various initiatives
such as employee training, career development, performance management, coaching,
mentoring, and succession planning. The aim of HRD at MIDHANI is to enhance the skills,
knowledge, and abilities of employees to achieve organizational goals.
18.2.Development of human resources is crucial for organizational
growth. By creating a conducive environment, organizations can tap into the unlimited
potential capabilities of their workforce. MIDHANI recognizes the significance of its
human resources and strives to build a motivated and committed workforce. HR management
has evolved into a strategic function from a traditional support role.
18.3. Human Resource Development has greatly contributed to the
organization's well-being, leading to a stronger workforce, improved relations, and higher
productivity and profitability. At MIDHANI, Employees are considered as most valuable
asset, and their talent management is aligned with technology to drive company's growth.
18.4. The Company values its highly skilled and self-motivated employees. Continuous
training and development modules are provided to upgrade their knowledge and skills, with
special emphasis on the development of employees from SC, ST, OBC, and Differently abled
categories.
18.5. Manpower Position: The manpower strength of MIDHANI as on
March 31, 2023 stands at 478 Non-Executives, 25 Non-Unionized Supervisors and 248
Executives compared with 486 Non-Executives, 36 Non-Unionized Supervisors and 248
Executives as on March 31, 2022.
18.6.The total manpower strength under permanent category of your
Company as on March 31, 2023 is as under:
Particulars |
Non-Executives |
Non-Unionized Supervisors |
Executives |
Total |
| Male |
434 |
23 |
218 |
675 |
| Female |
44 |
2 |
30 |
76 |
Total |
478 |
25 |
248 |
751 |
Statement showing the representation of SC/ST/OBC/PH and their
recruitment etc., is enclosed as 'Annexure - II'
Note: Excluding Directors
Representation of SC/ST/OBC among Non-Executives:
SC |
ST |
OBC |
Others |
Total |
87 |
46 |
210 |
135 |
478 |
18.7. Employee Welfare Initiatives: The various employee welfare
initiative taken during FY 2022-23 are as below:
• Encouraging Small Family Norms:In order to encourage
employees to opt for a small family, Management, as a policy, allows casual leave for
employees who undergo sterilization operation varying from 6 to 14 days based on the type
of sterilization operation.
• Social obligations/welfare programs: Monetary awards were
presented on August 15, 2022 to meritorious students/children of our employees of SC, ST
and OBC categories @ H 1000/- per child in each category for scoring highest % of marks
and @ H 500/- each to all the students of above categories who scored 75% and above marks
in X class Board examination or equivalent held in March/April.
• Post-Retirement Medical Benefit Scheme (PRMBS): The PRMBS
(Post-Retirement Medical Benefit Scheme) for Executives and Non-Unionised Supervisors who
retired after January 1, 2007 along with the Group Medical Insurance Scheme for Employees
retired prior to January 1, 2007 have been successfully implemented. Medical insurance
cards have been issued to the beneficiaries, including Executives, Non-Unionised
Supervisors, and Non-Executives. Additionally, the PRMBS for Non-Executives retired on or
after January 1, 2007 was implemented from May 1, 2015 as approved by the Board.
These schemes are currently operational.
• Education Scholarship for wards of Workmen / employees of
MIDHANI Studying in BPDAV School:
Merit Scholarships are awarded to the children of employees who are
studying in classes 1 to X and have achieved the 1st and 2nd ranks
in their previous class's final examinations. The recipients of the scholarship will
receive H 6,000/- and H 3,000/- per annum, respectively. Additionally, children of workmen
in WG-0 to WG-5 who pass their previous class (I to X) and move on to the next grade are
eligible for an Education Scholarship of H 300/- per month.
• School Activities: Brahm Prakash D A V School, located in
MIDHANI Township, is managed by the Company for the benefit of MIDHANI employees' children
and for students located nearby MIDHANI. The school focuses on the holistic development of
students, encouraging their participation in extracurricular activities such as sports,
and Scouts & Guides. The students have achieved great success in academics, sports,
and cultural activities, bringing pride to the school.
• Township: MIDHANI has provided housing facilities to its
essential services employees through a Township comprising of 87 quarters.
18.8. Women Empowerment:
• MIDHANI provides a platform for women employees to excel and
contribute to organizational goals. With 76 women employees in executive and non-executive
roles, they are involved in various departments across the company. Management supports
their development through training programs and ensures their welfare in compliance with
regulations.
• To encourage women employees to strengthen their technical
skills and overall grooming, Management nominates women employees for in-house as well as
external training programs.
• MIDHANI celebrates International Women's Day program every
year on 8th March. As part of celebrations on March 8, 2023, the theme was
"DigitALL: Innovation and technology for gender equality". As part of this
program, we have conducted outbound training session for women employees on
"Corporate Well-being by Conscious Living". 18.9. Industrial relations:
The industrial relations continued to be peaceful and cordial during the year under
report. The management continues to receive maximum support and cooperation from the
employees as in the past.
18.10.Environment management: MIDHANI persistently prioritized
the preservation and enhancement of ecological balance within and around its factory
premises through the establishment and upkeep of a diverse and extensive plantation. The
green belt at MIDHANI, comprising thousands of plants, forms a dense canopy of greenery.
This endeavor effectively mitigates air and dust pollution while also providing a
conducive habitat for various bird species.
19. DIRECTORS, EMPLOYEES AND RELATED DISCLOSURES:
In accordance with Ministry of Corporate Affairs notification no. GSR
463(E) dated June 05, 2015, Government Companies are exempt from provisions of Section 197
of the Companies Act, 2013 and rules thereof.
20. TRAINING & DEVELOPMENT:
20.1 During the FY 2022-23, the Training & Development Department
significantly increased its training man days from 1236 to 2855. This was achieved through
various training programs, including 18 In-House Training programs for Casuals/FTC's,
Executives, NUS & Non-Executives, as well as 17 External programs for Executives, NUS
& Non-Executives. Additionally, as part of the industry-academia interface program,
eight plant visits were organized throughout the year. 20.2 MIDHANI is fully committed to
fulfilling its obligations under the Apprentice Act 1961. As part of this commitment, we
have engaged approximately 187 Trade Apprentices in various trades such as Electrician,
Fitter, Welder, Machinist, and Turner for one-year on-the-job training. Additionally,
under the Board of Apprenticeship Training (BOAT) Scheme, we have provided on-the-job
training to 6 Graduate Apprentices (GATs), 10 Technician Apprentices (TATs), and 6
Sandwich Diploma Engineering (Metallurgy) students from Govt. Polytechnic. These
initiatives reflect our committment for nurturing and developing skilled professionals in
the industry. 20.3 In addition to on-the-job training for apprentices, MIDHANI has
organized various skill development training programs.
These programs include knowledge transformation sessions and
motivational sessions conducted by the Assistant Director of Regional Director of
Apprenticeship Training (RDAT), covering a total of 664 man-days. These initiatives aim to
enhance the skills and motivation of our workforce, ensuring their continuous growth and
development.
21. STATUTORY & SOCIAL OBLIGATIONS:
21.1 CORPORATE SOCIAL RESPONSIBILITY (CSR):
• The Corporate Social Responsibility and Sustainable Development
Policy of MIDHANI in line with the Companies Act 2013 was approved by the Board of
MIDHANI. The policy is available at https://midhani-india.in/policies/.
• For the year under review MIDHANI has incurred expenditure of H
393.42 Lakh for CSR activities against the mandatory requirement of H 414.33 Lakh after
setting off excess CSR expenditure of H 29.08 Lakh during previous year. Thus, the
cumulative CSR expenditure incurred by MIDHANI over the years has crossed H 3,714.02 Lakh.
The unspent amount of H 22 Lakh pertaining to an ongoing project has been transferred to
unspent CSR Account in line with Section 135 (6) of the Companies Act, 2013.
• The Company has prepared an annual report on its CSR activities,
in compliance with the Companies (Corporate Social Responsibility Policy) Rules, 2014. The
report can be accessed at https://midhani-india.in/csr/ and forms part of Annual Report as
Annexure - III. Details about the composition of the Corporate Social
Responsibility and Sustainable Development Committee of MIDHANI can be found in the
"Report on Corporate Governance," which is included in this Annual Report.
• The CSR activities undertaken by our Company during the
reporting year encompass the following areas: (i) Promotion of Health Care and Sanitation;
(ii) Promotion of Education; (iii) Skill Development and; (iv) Others
(i) Promotion of Health Care and Sanitation:
(a) Promotion of Health care: i) ‘MIDHANI Primary Health Care
Centre' was set up through ‘MIDHANI Primary Health Care Trust' to cater to
the medical needs of the public living in and around MIDHANI. An amount of H 133.54 Lakh
was spent towards Medicines and Administrative Cost. ii) Basic checkup and medicines are
provided free of cost to the needy patients at MIDHANI Primary Health Care Centre. iii)
Sponsored Anesthesia Work Station and Patient Bed Lift through Seva Bharathi – NGO
amounting to H 20 Lakh. iv) Sponsored Mobile Ambulance to ABV Foundation amounting to H 20
Lakh. v) Sponsored health awareness campaign at remote areas of Lucknow, Uttar Pradesh
through Mamta Charitable Trust amounting to H 20 Lakh. vi) Sponsored ESG Machines (10
no's) to DHMO Office, Hyderabad for Bhasti Dawakhanas.
(b) Annual maintenance of Toilets constructed by MIDHANI under Swachh
Bharat Mission:
i) Location: Public Toilet constructed around MIDHANI.
ii) Total Project Expenditure: H 0.25 Lakh.
iii) No of beneficiaries: 100-150 per day.
(ii) Promotion of Education:
(a) 7 Children belonging to SC/ST category whose parents fall in lower
income group were given admission in to LKG and the entire fee shall be borne by MIDHANI
till they complete 10th Class. (b) Sponsored Dual Desks to various Government
Schools of Kothagudem (Aspirational Dist) at an expenditure of H 45.34 Lakh.
(iii) Skill Development:
(a) Every year MIDHANI is inducting more than 10% apprentices to help
students have exposure to the real time environment and gain knowledge from the
experienced professionals. As part of the stipend paid to the apprentices, an amount of H
80.40 Lakh is accounted under CSR as per the guidelines.
• Actual Expenditure incurred in FY 2022-23 is H
3,93,41,715/- against mandatory expenditure of H 4,43,41,000/- and Company has
set-off H 29,08,000/-
pertaining to excess expenditure during FY 2021-22. The Annual Report
on CSR forms part as Annexure – III of this Annual Report. The unspent amount
of H 22,00,000 pertaining to an on-going project has been transferred to unspent CSR
account.
21.2 DISCLOSURE UNDER SEXUAL HARRASEMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:
• At our Company, we are committed to provide a safe and inclusive
workplace environment for all employees, with special emphasis on the safety and
well-being of women. To ensure this, we have established an Internal Complaints Committee
(ICC) dedicated to addressing and resolving complaints related to sexual harassment. The
ICC operates in accordance with our policy, following guidelines that prioritize the
protection and support of all individuals involved.
• During the review period, we are pleased to report that the
Internal Complaints Committee (ICC) did not receive any complaints regarding sexual
harassment. Furthermore, as of the end of FY 2022-23, there are no pending complaints
related to sexual harassment. This signifies our continuous efforts in providing a safe
and respectful work environment for all employees.
21.3 CONTRIBUTION TO EXCHEQUER:
During FY 2022-23, your Company contributed an amount of H 26,027.52
Lakh in the form of Dividend,
Duties and Taxes vis-a-vis H 22,363.05 Lakh during FY 2021-22.
21.4 COPY OF ANNUAL RETURN:
The Annual Return as provided under sub-section (3) of Section 92 of
The Companies Act 2013 is available at website of the Company viz.
https://midhani-india.in/annual-return/
21.5 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO:
The Report on conservation of Energy, Technology Absorption and foreign
exchange earnings and outgo forms part of Annual Report as Annexure – IV.
21.6 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT (BRSR):
• As per the requirements of Regulation 34 of SEBI Listing
Regulations, the Business Responsibility and Sustainability Report (BRSR) forms part of
Annual Report as Annexure-V. This report highlights the various initiatives
undertaken by the company in terms of environmental sustainability, social responsibility,
and governance practices. We encourage you to review this report for a comprehensive
understanding of our commitment to responsible business practices.
21.7 IMPLEMENTATION OF RIGHT TO INFORMATION (RTI) ACT 2005:
MIDHANI, as a Public Authority under the RTI Act 2005, has appointed a
Nodal officer, Appellate Authority, and CPIO to ensure compliance with the Act. The
Company promptly provides information requested by citizens within the specified time
frame. MIDHANI also fulfills its obligation of Suo Motu disclosures under Section 4(1)(b)
of the RTI Act by displaying information on its official website. The company's website is
regularly updated to keep stakeholders informed about news and developments. During FY
2022-23, 165 RTI applications were received and 173 applications were disposed of,
including those from the previous period. Additionally, 11 RTI appeals were raised and
resolved within the same year. MIDHANI submits quarterly returns to the authorities in
accordance with the regulations.
21.8 RAJBHASHA IMPLEMENTATION:
• MIDHANI diligently complied with the directives and regulations
set by Government of India for promoting use of Hindi in official work. Regular quarterly
meetings of the Official Language Implementation Committee were held, chaired by the
Chairman & Managing Director, and progress reports were submitted to the Ministry of
Defence (MoD) and Ministry of Home Affairs (MHA) and to Town Official Language
Implementation Committee - Undertaking (TOLIC-U).
• Asarecognitionofyourcompany'sexcellentperformance in
official language implementation, MIDHANI received the Rajbhasha Award and was notified in
the Gazette of India for achieving 80% proficiency in Hindi. To further encourage the
usage of Hindi, MIDHANI provided Hindi training courses to employees. Hindi awareness
workshops were organized for employees to facilitate their day-to-day official work in
Hindi.
• In compliance with the Ministry of Home Affairs' directives,
"HINDI FORTNIGHT" celebrations were conducted. MIDHANI also celebrated
"WORLD HINDI DAY" by conducting various programs. Additionally, the company
published the 25th and 26th issues of its inhouse Rajbhasha House
Journal 'Sankalp' as an e-Magazine during the FY 2022-23.
21.9 RELATED PARTY TRANSACTION:
• Disclosure of related party transactions as per Ind AS- 24,
issued by the Institute of Chartered Accountants of India, is provided at note no. 40 of
the Notes forming part of Annual Accounts for FY 2022-23.
• All contracts /arrangements /transactions entered into by the
Company with related parties during the year under review, were in ordinary course of
business of the Company and on ‘arms' length terms. The related party
transactions were placed before the Audit Committee for review and/or approval.
• During the year, the Company did not enter into any contract
/arrangement /transaction with related party, which could be considered material in
accordance with the Company's ‘Policy on Materiality of and dealing with Related
Party Transactions' and accordingly, the disclosure of related party transactions in
Form AOC-2 is not applicable. The aforesaid Policy is available on the Company's
website viz. https://midhani-india.in/policies/
22. VIGILANCE ACTIVITIES:
22.1 The company's Vigilance Department is led by Dr. Upender Vennam,
an IPoS officer, as the Chief Vigilance Officer (CVO). In this role, the CVO acts as an
advisor to the Chairman & Managing Director (C&MD) on all vigilance-related
matters and serves as a liaison between the organization and the Central Vigilance
Commission (CVC).
22.2 During the concluded financial year, the Vigilance Department
focused on preventive vigilance, aiming to eliminate favoritism and arbitrariness through
the standardization of rules and procedures. Regular inspections, both planned and
surprise, were conducted on procurement contracts, sub-contracts, and other processes.
22.3 Chief Technical Examination (CTE) inspections were carried out in
areas such as procurement, civil works, and consumption of high-speed diesel, with reports
submitted to the management. Four structured meetings between the Chairman & Managing
Director and the Chief Vigilance Officer were held during FY 2022-23. Additionally, the
Vigilance Department suggested fifteen systemic improvements and good practices in various
areas, including human resources, IT, security, and procurement/contracts. These
suggestions were considered by the management and made available on the company website.
22.4 During the year, the Vigilance Department in MIDHANI focused on
promoting transparency, fairness, and ethicality in company transactions and processes
through awareness campaigns and training programs. Vigilance Awareness Week 2022 was
observed in MIDHANI from October 31 to November 6, 2022 focusing on CVC theme of
"Corruption free India for a developed Nation. The 10th issue of the
in-house vigilance magazine "JAGRUTI" was also published and made available to
all MIDHANI employees.
23. VIGIL MECHANISM:
23.1 The Whistleblower Policy was first adopted by the Board of
Directors at its 206th Meeting on January 23, 2013. It was later amended as the
Whistleblower Policy - 2018 to align with the Public Interest Disclosure and Protection of
Informers Resolution, 2004 (PIDPI). This policy provides a mechanism for individuals to
report complaints and seek protection against any retaliation for whistleblowing.
23.2 The Whistleblower policy established by the company is to
encourage employees to report any unfair or unethical activities within the organization.
The Board level Audit Committee periodically reviews the functioning of the vigil
mechanism and addresses any whistleblower complaints received.
23.3 The Whistleblower Policy - 2018 serves as MIDHANI's Vigil
Mechanism and enables stakeholders to report any issues that may have an impact on the
organization. The policy is readily accessible on the company's website. viz. https://
midhani-india.in/department_vigilance/rolefunctions-of-vigilance-department/
24. AWARDS AND RECOGNITION:
MIDHANI was honored with Rajbhasha Puraskar for excellent
implementation of Official Language in the 56th half yearly meeting of Town
Official Language Implementation Committee (Undertaking), Hyderabad-Secunderabad held on
October 28, 2022 at BDL, Kanchanbagh, Hyderabad.
25. COMPANY PERFORMANCE AND FUTURE OUTLOOK:
The Annual Report includes Management Discussion and Analysis,
providing a comprehensive analysis of the Company's financial performance, operations, and
future outlook.
26. CORPORATE GOVERNANCE:
26.1 The Company adheres to the principles and philosophy of Corporate
Governance, ensuring good decision-making practices in line with current standards and
guidelines from the Department of Public Enterprises. A comprehensive Code of Business
Conduct and Ethics is in place which is applicable to all Board Members and Senior
Management. A certificate from the Chairman and Managing Director affirming compliance
with Code of Business Conduct and Ethics for Board and Senior Management forms part of
Annual Report as Annexure – VI.
26.2 The Annual Report includes a comprehensive report on Corporate
Governance, providing detailed information on the company's adherence to guidelines issued
by the Department of Public Enterprises (DPE) and SEBI Listing Regulations. A certificate
confirming compliance with these guidelines, signed by a practicing Company Secretary,
forms part of Annual Report as Annexure – VII.
26.3 In line with the Revised Grading norms for CPSEs, your Company has
achieved a perfect score of 100% for the FY 2022-23 in terms of compliance with the
Guidelines on Corporate Governance issued by the Department of Public Enterprises (DPE).
27. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
27.1 MIDHANI has implemented a robust framework for internal controls,
which is designed to align with the company's size and operations. This internal control
system is further strengthened by a comprehensive program of internal audits and
management reviews. The internal audit function, supported by external audit firms,
conducts thorough and risk-focused audits to assess the effectiveness of the internal
control structure and its functions on a regular basis. This ensures the integrity and
reliability of the company's operations.
27.2 The Company has implemented robust internal financial controls in
accordance with the requirements of the Companies Act, 2013. These controls are
implemented at various levels within the organization to ensure compliance with internal
control requirements, regulatory compliance, and accurate recording of financial and
operational information. The internal financial controls are designed to safeguard assets,
prevent fraud, maintain financial accuracy, and promote operational efficiency.
27.3 The Company engaged the services of external audit firm Eswar
& Co. to conduct the internal audit during the year, with a focus on assessing the
adequacy of systems and controls. The audit reports prepared by Eswar & Co. were
thoroughly reviewed by the Audit Committee. Additionally, the in-house Internal Audit team
conducted regular audits of specific processes. The findings and recommendations from
these audits, along with the corrective actions initiated, were discussed with the
Management and reviewed by the Audit Committee. The Audit Committee also assessed the
adequacy and effectiveness of internal controls in place.
27.4 No instances of fraud were reported to the Audit Committee by the
Auditors in accordance with Section 143(12) of the Companies Act, 2013 and the rules
prescribed. Therefore, no disclosure is required under Section 134(3)(ca) of the Act.
28. BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL:
28.1 The Board of your Company at the beginning of FY 2022-23 comprised
of Four (4) Directors i.e. Two (2) Functional Directors, One (1) Government Nominee
Director and One (1) Independent Director, all eminent personalities with vast experience
from diverse fields. Subsequently, Smt. Vallikkat Thanayankizhil Rema (DIN: 09561611) was
appointed as Independent Director w.e.f. April, 5, 2022 and Shri T. Muthukumar was
appointed as Director (P&M) w.e.f. June 23, 2022. 28.2 As on date of this Report, the
Company has Six (6) Directors i.e. Three (3) Functional Directors, One (1) Govt. Nominee
Director and Two (2) Independent Directors.
28.3 During the year under review, the following changes in composition
of Board of Directors were observed:
• Smt. Vallikkat Thanayankizhil Rema (DIN: 09561611) was appointed
as the Woman Independent Director on the Board of Mishra Dhatu Nigam Limited by the
Ministry of Defence, vide letter No. 11(70)/2021/Misc./D(NS) dated March 25, 2022,
effective from April 5, 2022, for a period of 3 years or until further order by the
Ministry. The appointment was approved by the Members of the Company through a Special
Resolution passed on June 30, 2022, via the Postal ballot process, in accordance with
Regulation 17(1C) & 25(2A) of SEBI (Listing Obligations and Disclosure Requirements )
, Regulations 2015 (SEBI Listing Regulation).
• Cmde Siddharth Mishra, former C&MD of Bharat Dynamics
Limited (BDL), was entrusted with the additional charge of the post of Director (P&M)
vide letter no: 2(13)/2015/MDN/D(NS-I) dated May 27, 2022 by the Administrative Ministry.
The appointment was effective from May 11, 2022, for a period of 6 months. However, Cmde
Siddharth Mishra did not assume the charge.
• Shri Thulasiraman Muthukumar (DIN:09636771) was appointed as
Director (Production & Marketing) (pay scale of H 1,60,000 – 2,90,000 (IDA)) on
the Board of Mishra Dhatu Nigam Limited by the Ministry of Defence vide letter No.
5/1(1)/2020/D(NS) dated June 9, 2022. Shri T. Muthukumar assumed charge of the post on
June 23, 2022. The members of the Company approved his appointment through an Ordinary
Resolution passed via postal ballot on August 03, 2022, in accordance with Regulation
17(1C) of the SEBI Listing Regulations. His appointment is effective until June 30, 2025,
or until further orders by the Ministry of Defence.
• Shri Surendra Prasad Yadav, (JS – LS) (DIN:02267582) was
appointed as Govt. Nominee Director in place of Shri Anurag Bajpai (DIN: 08948155) w.e.f.
November 10, 2022. The members of the Company approved appointment of Shri Surendra Prasad
Yadav, (JS – LS) through an Ordinary Resolution passed via postal ballot on January
27, 2023, in accordance with Regulation 17(1C) of the SEBI Listing Regulations. 28.4 In
accordance with provisions of the Companies Act, 2013, Dr. Sanjay Kumar Jha, Chairman
& Managing Director (DIN: 07533036) retires by rotation at the ensuing Annual
General Meeting (AGM) and being eligible has offered himself for re-appointment.
28.5 The Notice of the 49th Annual General Meeting (AGM)
provides a brief resume, expertise, directorship details in other companies, and
shareholding information of the Director(s) proposed for appointment/re-appointment at the
AGM, in accordance with Secretarial Standard-2 and Regulation 36 of the SEBI Listing
Regulations.
28.6 Performance Evaluation: The appointment/reappointment of
Independent Directors in the Company, being a Government Company, is done by the President
of India through the Administrative Ministry. The evaluation of Independent Directors'
performance and their compliance with the Independence criteria specified in the SEBI
Listing Regulations is conducted by the Government of India through its internal
processes.
29. REMUNERATION POLICY:
29.1 MIDHANI is a Government of India-owned Public Sector Enterprise
under the administrative control of the Ministry of Defence. The Directors of the Company
are appointed by the President of India and their remuneration is determined in accordance
with the Guidelines issued by DPE. As per Article 67 of MIDHANI's Articles of Association,
the President of India is Competent Authority for appointing Directors and deciding their
remuneration. Given that these appointments are made by the President of India, the
evaluation of the performance of these appointees is also conducted by the Government of
India.
29.2 The terms and condition of payment of sitting fees to Independent
Directors and Govt. Nominee Director is available on the Company's website viz.
https://midhani-india.in/policies/.
29.3 Further, provisions of Section 178(2), (3) and (4) are not
applicable on Company vide Ministry of Corporate Affairs notification dated June 5, 2015.
30. DECLARATION AND MEETING OF INDEPENDENT DIRECTORS:
30.1 The Independent Directors of the Company have affirmed their
compliance with the independence criteria outlined in both the Companies Act, 2013 and
SEBI Listing Regulations. Additionally, they have fulfilled the requirements specified in
Rule 6, Sub-rule 1 & 2 of the Companies (Appointment and Qualifications of Directors)
Rules, 2014.
30.2 The Independent Directors have provided confirmation of their
adherence to the "Code of Business Conduct and Ethics for Board Members and Senior
Management" of the Company.
30.3 During FY 2022-23, one (1) meeting of the Independent Directors
was conducted on March 15, 2023, in accordance with the provisions of the Companies Act,
2013, and SEBI Listing Regulations.
31. DIRECTORS' RESPONSIBILITY STATEMENT:
31.1 Pursuant to Section 134(5) of the Companies Act, 2013, your
Directors state that: a. in the preparation of the Annual Accounts for the financial year
ended March 31, 2023, the applicable Indian Accounting Standards (Ind AS) have been
followed along with proper explanations on the material departures; b. the Directors have
such Accounting Policies have been selected and applied consistently and judgments and
estimate have been made; that were reasonable and prudent so as to give a true and fair
view of the state of affairs of the Company at the end of the financial year i.e. March
31, 2023; and of the Profit of the Company for the year ending on March 31, 2023; c. the
Directors have taken proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act 2013,
as amended from time to time, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; d. the Directors have prepared
the accounts for the financial year ended on March 31, 2023 on a ‘going concern'
basis; e. the Directors have laid down proper internal financial controls in place and
that such internal controls are adequate and are operating effectively; and f. the
Directors have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
32. AUDITORS:
32.1 Statutory Auditors: C&AG of India appointed M/s Sarath
& Associates, Chartered Accountants, Hyderabad, [Firm Registration
No. 005120S] as Statutory Auditors of the Company for conducting audit of accounts for the
year ended March 31, 2023. The Auditors Report of Statutory Auditors on the Financial
Statements for the financial year ended on March 31, 2023, is an unmodified opinion i.e.,
it does not contain any qualification, reservation or adverse remark.
32.2 Cost Auditor: Your company is required to maintain cost
records as specified by Central Government under section 148(1) of the Companies Act,
2013. Your Company appointed BVR & Associates, Cost Accountants, Hyderabad, [Firm
Registration No 000453] as Cost Auditors for the FY 2022-23 in terms of Section 148 of
Companies Act, 2013, read with the Companies (Cost Records and Audit) Rules, 2014. 32.3
Secretarial Auditor: In terms of Section 204 of the Companies Act,
2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014 your Company appointed C V Reddy K & Associates, Hyderabad [FRN: S2010AN130900]
as Secretarial Auditors of the Company for the FY 2022-23. The Secretarial Audit Report
forms part of Annual Report as Annexure – VIII along with management reply to
the observations therein.
32.4 Internal Auditor: Your Company engaged Eswar & Co.
[Firm Registration No. 007288C] to conduct Internal Audit for FY 2022-23.
33. COMMENTS OF COMPTROLLER & AUDITOR GENERAL OF INDIA:
The ‘Nil Comments' certificate on the Accounts issued by the
Comptroller and Auditor General of India for the year ended March 31, 2023 is placed in
Annual Report after Statutory Auditors Report.
34. DISCLOSURES UNDER COMPANIES ACT, 2013:
34.1 Borrowings and Debt Servicing: During the year under
review, your Company has met all its obligations towards repayment of principal and
interest on loans availed.
34.2 Particulars of loans given, investments made, guarantees /
securities given: The details of investments made and loans/ guarantees/securities
given, as applicable, are given in Notes No. 6, 7 and 14 of the Annual Financial
Statements. 34.3
Board Meetings: During the financial year ended on March 31, 2023,
the Board met seven (7) times on June 26, 2022, July 27, 2022, October 3, 2022, November
14, 2022, December 19, 2022, February 8, 2023 and March 15, 2023. For further details of
these meetings, Members may please refer ‘Report on Corporate Governance' which
forms part of this Annual Report.
34.4 Board Committees:For details regarding Board
Committee's, Members may please refer ‘Report on Corporate Governance'
which forms part of this Annual Report.
34.5 Secretarial Standards: Your Directors state that the
Secretarial Standards i.e. SS-1 and SS-2, relating to ‘Meetings of the Board of
Directors' and ‘General Meetings', respectively have been duly followed by
the Company.
35. GENERAL AFFIRMATIONS AND DISCLOSURES:
35.1 Your Directors' state that no disclosure is required in
respect of the following matters, as there were no transactions/ events in relation
thereto, during the year under review: a) Details relating to deposits covered under
Chapter V of the Companies Act, 2013. b) Issue of equity shares with differential rights
as to dividend, voting or otherwise. c) Issue of shares (including sweat equity shares) to
employees of the Company under any scheme of the Company.
35.2 Your Directors' further state that: a) there was no
change in the share capital of the Company during the year under review. b) no material
changes/commitments of the Company have occurred after the end of the FY 2022-23 and till
the date of this report, which affect the financial position of your Company. c) no
significant or material orders were passed by the Regulators or Courts or Tribunals which
impact the ‘going concern' status and Company's operations in future. d)
during the year, no corporate insolvency resolution process was initiated under the
Insolvency and Bankruptcy Code, 2016, either by or against the Company, before National
Company Law Tribunal or other court(s).
36. ACKNOWLEDGEMENT:
36.1 The Board of Directors extends their heartfelt gratitude for the
unwavering support and assistance received from various Government agencies, particularly
the Ministry of Defence, establishments under DRDO, and other Central and
State Government agencies. The Directors also express their sincere
appreciation to the customers, vendors, bankers, C&AG, statutory/internal auditors,
Chairperson of the Audit Committee, Chairperson of other sub-Committees of the Board,
advisers, consultants, and stakeholders associated with the Company for their continuous
support and guidance throughout the year.
36.2 The Directors would like to express their sincere appreciation for
the significant contributions and exceptional cooperation provided by all the employees of
the Company. 36.3 The Directors would also like to extend their gratitude and appreciation
to all the shareholders and investors for their unwavering trust and confidence in the
Company. The Directors eagerly anticipate their continued support, which will propel the
Company towards even greater accomplishments in the future.
|
For and on behalf of the Board of
Directors |
|
Sd/- |
|
Dr. Sanjay Kumar Jha |
| Place: Hyderabad |
Chairman & Managing Director |
| Date : July 18, 2023 |
DIN: 07533036 |
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