Railtel Corporation of India Ltd
Directors Reports
Dear Shareholders,
Your Company's Directors are pleased to present 23rd Annual Report of the
Company, together with the
Auditors' Report and Comments of the Comptroller and Auditor General of India ("C&AG"),
for theFinancial Year ended 31st March, 2023 prepared in accordance with the
provisions of the Companies Act, 2013 read with rules made thereunder and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015-["Listing
Regulations"] as amended from time to time.
1. Company Overview
RailTel Corporation of India Limited ("RCIL") is one of the largest
neutral telecom infrastructure providers in the country owning a Pan-India optic fiber
network along Railway track. The biggest USP of RCIL is its ownership of a Pan-India
61000+ RKM of Optic fiber network which covers all important towns & cities of the
country and several rural areas covering 70% of India's population. RCIL with strong
nationwide presence is committed to bring cutting edge technology and offer innovative
services the Indian Telecom market. With its Pan-India high-capacity network, RCIL is
working towards creating a knowledge society at various fronts.
Equipped with ISO-9001-2008, ISO-27001:2005 and ISO 20000-1:2011 certification, RCIL
offers a wide gamut of managed telecom services to Indian Telecom market. The service
includes RCIL e-office, Managed lease lines, Tower MPLS based IP-VPN, Internet, Data
Center services, HD Video Conferencing Services, NGN based voice carriage services to
Telecom Operators, Services to Internet Service Providers, MSOs, Enterprises, Banks,
Government Institution/ Departments, Educational Institutions /Universities, PSUs etc.
RCIL being a "Mini Ratna (Category-I)" PSU is steaming ahead in the enterprise
segment with the launch of various services coupled with capacity augmentation in its Core
network. Your company stands as the only telecom PSU, which is a 100% debt free company
and consistently profit-making PSU in telecom sector.
2. Financial Highlights
During the year, your Company has achieved total consolidated turnover of Rs. 2002.20
Crore. The Company has observed an increase of 27.93% in its revenue from operations which
comes out to be Rs. 1946.52 Crore on standalone basis. The total turnover of the Company
during the year is Rs.2002.20 Crore comprising of other income of Rs.38.68 Crore.
The summarized financial results of your Company are shown in Table 1.
3. Listing of Shares
The equity shares of the Company got listed on 26/02/2021 on National Stock Exchange of
India Limited ("NSE") and BSE Limited ("BSE"). The Scrip Code for
equity shares of RCIL assigned by BSE is 543265 and Scrip Symbol assigned by NSE is
RAILTEL.
4. Share Capital
There is no change in the capital structure of the Company during the period under
review and from the end of the FY till the date of this report.
Accordingly, Issued, Subscribed and Paid-up Share Capital is 320.94 crore divided into
32.09 crore Equity Shares of 10 each as on 31st March, 2023, including 305.94 crore issued
for consideration other than cash.
The details of dematerialization of shares, Demat Suspense Account/Unclaimed Suspense
Account is provided in the Corporate Governance Report as annexed to this report.
Table1: Financial Highlights of Company
(In Crore)
Particulars |
Year ended |
Year ended |
Year ended |
Year ended |
|
31/03/2023 |
31/03/2022 |
31/03/2023 |
31/03/2022 |
|
Consolidated |
Standalone |
Total Revenue |
|
|
|
|
-Revenue from Operations |
1963.51 |
1548.45 |
1946.52 |
1521.54 |
-Other Income |
38.68 |
29.28 |
34.15 |
25.94 |
Expenditure |
1745.36 |
1347.21 |
1726.03 |
1318.11 |
Depreciation |
154.31 |
160.18 |
154.27 |
160.13 |
Profit Before Interest, Tax & |
256.84 |
230.52 |
254.64 |
229.37 |
Exceptional items |
|
|
|
|
Interest |
0 |
0 |
0 |
0 |
Exceptional Items |
2.06 |
-50.10 |
2.06 |
-50.18 |
Tax/ Others |
65.71 |
71.67 |
65.20 |
71.22 |
Profit for the Year |
189.07 |
208.94 |
187.38 |
208.34 |
Basic EPS (In ) |
5.89 |
6.51 |
5.84 |
6.49 |
5. Dividend
Your Company has a consistent track-record of dividend payment. The Board of Directors
of your
Company had earlier approved payment of an Interim Dividend of 1.50 per share amounting
to 48.14 Crore for the FY 2022-23. Further, the Board has recommended payment of final
dividend of 1.05 per share amounting to 33.69 Crore for the FY 2022-23. The total dividend
payment for the FY 2022-23 would be 81.83 as compared to 77.02 crore paid for the FY
2021-22. In terms of Regulation 43A of Listing Regulations and the guidelines on
"Capital Restructuring of Central Public Enterprises" issued by the DIPAM, the
Board of Directors of the Company has formulated and adopted the Dividend Distribution
Policy. The said Policy is annexed to this report at Page No. 72 and is also
available on the Company's website i.e. www.railtelindia.com
6. Railways Revenue Share
The Company is also contributing by way of revenue share @ 7 % on services to Indian
Railways and the total share of such contribution comes to 41.93 Crore as against such
share of 39.72 Crore in the preceding year. The cumulative revenue share to
Railways amounting to 380.93 Crore till this year. Besides, the Company has also paid
license fee @ 8% (at present) to DoT, Govt. of India on its income from telecom business
carried by it under licenses granted to it.
7. Reserves
The Company appropriated its profit earned during the year under review. The Company
has not transferred any amount to the General Reserves during the year. The total reserves
& surplus at the end of the FY 2022-23 is 1,316 Crore (on Standalone basis).
8. Capital Expenditure
During the year, Capital expenditure of 182 Crore approx. was incurred mainly on OFC
related assets,Telecom & Radio equipment's etc. The Company made commitments to the
tune of 145.22 Crore on capital account and accordingly, expenditure would be booked
during the current financial year, in addition to the capital expenditure allocated for FY
2022-23.
9. Declaration from Independent Directors
RCIL has received a declaration from its Independent Directors stating that they have
met the criteria of independence under Section 149(6) of the Companies Act, 2013 and
Regulation 16(1)(b) read along with Regulation 25(8) of Listing Regulations and are not
disqualified from continuing as Independent Directors. There is no extension of any
Independent Director for a term exceeding Five (5) years as per Section 149(10) of the
Companies Act, 2013.
10. Number of Meetings of Board
The Board met Eight (8) times for transacting the business of the Company during the FY
2022-23 i.e., on 04/05/2022, 24/05/2022, 09/07/2022, 10/08/2022, 29/09/2022, 10/11/2022,
31/01/2023 and 22/03/2023. The particulars of the meetings held and attended by Directors
are detailed in the Corporate Governance Report as annexed to this report.
11. Details of changes in Directors and other Key Managerial Personnel:
The following changes took place in the Board/Key
Managerial Personnel of the Company during the year and up-to date of Report:
Appointment of directors: -
1. Shri Rakesh Ranjan was appointed as Part-time Govt. Nominee Director w.e.f.
18/04/2022. Further, he has been entrusted with the additional charge of the post of
Director/ Network, Planning and Marketing w.e.f. 06/10/2022 till 04/07/2023.
2. Smt. Aruna Singh was entrusted with the additional charge of the post of Chairman
& Managing Director w.e.f. 11/05/2022 till 23/09/2022.
3. Shri Sanjai Kumar has been appointed as Chairman & Managing Director w.e.f.
23/09/2022.
4. Shri Vikas Kumar Jain has been appointed as Part-time Govt. Nominee Director w.e.f.
19/09/2022 till 30.01.2023.
5. Shri Rabindra Nath Mishra has been entrusted with the additional charge of the post
of Director/ Finance w.e.f. 07/10/2022 till 26/10/2022.
6. Shri V. Rama Manohara Rao has been appointed as Director/Finance w.e.f. 27/10/2022.
7. Shri V. Rama Manohara Rao has been appointed as Chief Financial Officer w.e.f.
10/11/2022.
8. Shri Rameshwer Meena has been appointed as Part-time Govt. Nominee Director w.e.f.
17/03/2023.
9. Shri Manoj Tandon has been appointed as
Director/Project, Operations and Maintenance w.e.f. 20/03/2023.
10. Shri Yashpal Singh Tomar has been appointed
as Director/Network Planning and
Marketing w.e.f. 04/07/2023.
Cessation of Directors: -
1. On completion of tenure, Shri Puneet Chawla ceased to be Chairman & Managing
Director w.e.f. 11/05/2022.
2. On completion of tenure, Shri Chinnsamy Ganesan ceased to be Part-time non-official/
Independent Director w.e.f. 12/07/2022.
3. On completion of tenure, Shri V. Shanker ceased to be Part-time Govt. Nominee
Director w.e.f. 08/08/2022.
4. On appointment of Shri Sanjai Kumar as full time Chairman & Managing Director,
Smt.
Aruna Singh who has been entrusted with the additional charge of the post of Chairman
&
Managing Director, ceased to be Chairman & Managing Director w.e.f. 23/09/2022.
5. On being elevated to the post of Chairman & Managing Director, Shri Sanjai Kumar
ceased to be Director/Network, Planning and Marketing w.e.f. 23/09/2022.
6. On completion of tenure, Shri Anand Kumar Singh Singh ceased to be Director/Finance
and Chief Financial Officer w.e.f. 01/10/2022.
7. On appointment of Shri V. Rama Manohara Rao as full time Director/Finance, Shri
Rabindra
Nath Mishra who has been entrusted with the additional charge of the post of Director/
Finance, ceased to be Director/Finance w.e.f. 27/10/2022.
8. On transfer of Shri Vikas Kumar Jain from the post of ED/ GS (Civil)-I/ Railway
Board, he ceased to be Part-time Govt. Nominee Director w.e.f. 30/01/2023.
9. On appointment of Shri Yashpal Singh Tomar as full time Director/Network Planning
and Marketing, Shri Rakesh Ranjan, who has been entrusted with the additional charge of
the post of Director/Network Planning and Marketing ceased to be Director/Network Planning
and Marketing and is continuing as part time govt. nominee director w.e.f. 04/07/2023.
12. Retirement of Director by Rotation
In terms of the Companies Act, 2013, the provisions with respect to retirement of
Directors by rotation will not be applicable to the Independent Directors of the Company.
In view of this, no Independent Director is being considered to be retired by rotation.
The Part-time Govt. nominee directors were considered as directors not liable to retire by
rotation but other directors (i.e. functional directors) will be retiring by rotation.
Accordingly, Shri V.
Rama Manohara Rao is liable to retire by rotation and being eligible, offers himself
for reappointment
13. Remuneration to Directors
RCIL, being a Government Company under the provisions of the Companies Act, 2013, the
Directors of the Company are appointed by the President of India acting through Ministry
of Railways ("MoR"), Government of India. The functional Directors are
appointed by the Government of India who draw remunerations under Industrial Dearness
Allowance pattern of pay scale except in case of Shri Puneet Chawla Ex-CMD, who was on
deputation to RCIL from MoR and was drawing Central Dearness
Allowance pay scales as pre-determined by the Government and as per the terms and
conditions of their appointment issued by the Government of India from time to time.
The Part time Government Nominee Directors on the Board of the Company do not draw any
remuneration from the Company.
The Part-time non-official Directors/Independent Directors are paid a sitting fee of
20,000 per meeting for attending meetings of Board or
Committees thereof, besides cost of travel and lodging in case of outstation Directors.
14. Policy on Performance Evaluation of Directors
RCIL is a Government Company under the administrative control of MoR. The functional
directors including Chairman and Managing
Director are selected on the recommendations of
Public Enterprises Selection Board in accordance with the procedure and guidelines laid
down by Government of India.
The Company enters into Memorandum of Understanding ("MoU") with the
Administrative
Ministry, i.e., MoR every year, containing key performance parameters for the company.
The performance of the Company is evaluated by Department of Public Enterprise vis-a-vis
MoU entered into with the MoR.
The evaluation of performance of Functional Directors includes self-evaluation by the
respective functional directors and subsequent assessment by CMD with final evaluation by
the MoR (the administrative ministry).
The performance evaluation of CMD includes self-evaluation and final evaluation by the
MoR. In respect of Part-time Government nominee directors, their evaluation is done by the
MoR as per the procedure laid down. Since, Independent Directors are appointed by the
administrative Ministry, their evaluation is also done by the MoR and Department of Public
Enterprises ("DPE").
Ministry of Corporate Affairs "MCA" ( ) vide its circular dated June
5, 2015 had exempted
Government Companies from the provisions of section 178(2) of the Companies Act, 2013,
which requires performance evaluation of every director by the Nomination &
Remuneration Committee. The circular further exempted Government Companies from the
provisions of Section 134
(3) (p) of Companies Act 2013, if directors are evaluated by the Ministry which is
administratively in-charge of the Company as per its own evaluation methodology.
Further, MCA vide its notification dated 5 th July, 2017 has exempted the provisions
relating to review of performance of Chairperson and non-independent directors and the
Board as a whole from evaluation mechanism, prescribed in Schedule IV of the Companies
Act, 2013, for Government Companies.
15. Committees of the Board
As on March 31, 2023, the Board had five committees namely the Audit Committee, the
Nomination & Remuneration Committee, the Corporate Social Responsibilities Committee,
the Stakeholders Relationship Committee and the Risk Management
Committee. The detailed note on the composition of the Board and its committees are
provided in the Corporate Governance Report section of this Annual Report and the details
of the Committees of the Board is also available on the website of the Company i.e.,
www.railtelindia.com
16. Subsidiary
Your Company has a wholly owned subsidiary by the name of RailTel Enterprises Limited ("REL")
incorporated on 12th August, 2014 under the provisions of the Companies Act,
2013. The authorised share capital of REL is 50 Crore and paid-up share capital is 10
Crore. The entire equity share capital of REL is held by RCIL through its nominees. The
affairs of the Company are managed, controlled and supervised by three Directors nominated
by RCIL's Board. The Company has filed an application for amalgamation of REL with RCIL
which is pending for approval before the MCA.
During the year under review, no company has become or ceased to be subsidiary/ joint
venture/ associate Company of RCIL.
The Consolidated Financial Statements of the Company duly audited by the Statutory
Auditors are presented in the Annual Report.
A report on performance and financial position of the subsidiary is presented in a
separate section of this Annual Report. Please refer Form AOC-1 annexed to the
consolidated Financial Statements in the Annual Report.
17. Projects Undertaken
The details of the projects undertaken during the year are included in Management
Discussion &
Analysis Report which is forming part of this Annual report.
18. Procurement from Micro and Small Enterprises
The Govt. of India has notified a Public Procurement
Policy for Micro and Small Enterprises ("MSE") Order, 2012. In terms
of said policy and issued guidelines, a mandatory procurement of a minimum of 25% of total
annual procurement is required from Micro and Small Enterprise's. Out of 25% target of
annual procurement from MSE's, sub targets of 4% from
MSEs owned by Schedule Caste or Scheduled Tribe
Entrepreneurs and 3% from MSEs owned by Women Entrepreneurs are also earmarked for
procurement.
The achievement of procurement target from MSEs during the financial year 2022-23 in
compliance to the aforementioned Public Procurement Policy is shown in Table-2.
Sl. |
Particulars |
2022-23 ( in Cr.) |
1 |
Total annual procurement (in value) |
513.47 |
2 |
Total value of procurement from MSEs |
277.88 |
3 |
% age of procurement from MSEs (including SC/ST and women) |
54.12 |
4 |
Total value of procurement from only MSEs owned by SC/ST entrepreneurs |
1.17 |
5 |
% age of procurement from MSEs owned by SC/ST entrepreneurs w.r.t.
procurement through MSEs |
0.23 |
6 |
Total value of procurement from only MSEs owned by Women entrepreneurs |
30.84 |
7 |
% age of procurement from MSEs owned by Women entrepreneurs w.r.t.
procurement through MSEs |
6.01 |
Central Government vide its notification F.No. 16/8/2018- P&G policy dated
2.11.2018 has mandated that companies registered under Companies Act 2013 with a turnover
of more than Rs.500 Crs and all CPSUs shall be required to get themselves on boarded on
TReDS. TReDS (Trade Receivables Discounting System) is an institutional mechanism
set up in order to facilitate the discounting of invoices for MSMEs from Corporate Buyers
through multiple financers. RailTel is registered on TReDS platform wef 18.03.19 through
Mynd Solution Private Limited or M1 Xchange.
19. Right to Information Act, 2005
Your Company has a well-defined mechanism place to deal with the RTI applications under
the
Right to Information Act, 2005 ("RTI Act"). RCIL being a responsible
Public Sector Undertaking has complied with the provisions of the RTI Act and has
designated CPIO/CAPIO, Appellate Authority & Transparency Officer and also a Nodal to
oversee its implementation as required under the provisions of the RTI Act. The RTI Act
seeks to provide for setting out the practical regime of
Right to Information for citizens to secure access to information under the control of
Public Authorities in order to promote transparency and accountability in the working of
every Public Authority. The details of RTI dealt during the year is shown in Table-3.
Table-3
Particulars |
Nos. |
No. of RTI cases pending as on 01/04/2022 |
03 |
Received during the Year |
242 |
Disposed off during the year |
236 |
Pending as on 31/03/2023 |
7 |
20. Business Responsibility and Sustainability Report
In compliance with the requirement of Clause (f) of sub-regulation (2) of Regulation 34
of Listing
Regulations, the Business Responsibility and
Sustainability Report ("BRSR") is presented in the separate section
which is forming part of this Annual Report.
21. Particulars of Loans, Guarantees or Investments
During the year, RCIL has not given any loan or guarantees covered under the provisions
of
Section 186 of the Companies Act, 2013 read with
Companies (Meetings of Board and its Powers)
Rules, 2014.
The detail of investments made by the Company is given in the notes to the Financial
Statements.
22. Internal Controls Systems and their Adequacy
The Company has an internal control system in commensuration with size, scale and
complexity of its operations.
During the year, the Company has engaged Internal
Auditors to carry out Internal Audit of the Company. The highlights of internal audit
report and their synopsis were placed before the Audit Committee for its review.
RCIL has implemented ORACLE ERP solution with name "Project Parivartan" and
all modules like
Projects, Procurement, Operations, Maintenance, Finance, HR, Sales and Marketing are
live from December 2013. Implementation of "Project
Parivartan" has empowered all employees to focus on their core competencies,
making work environment stress free, at the same time ensuring transparency and decision
making in the system. During the year 2022-23, RCIL's IT team continuously worked towards
strengthen of core processes of these implemented modules so that users could effectively
and efficiently use day-to-day work. New ERP Modules like Financial Budgeting, Payables
Provision Invoicing, Integration between Learning Management System with ERP, Integration
between HPSM with ERP, PAC/FAC Application and Revenue/Outstanding as per Credit
Policy Application have been developed apart from regular O&M and enhancements
works including development of new reports.
Further, as per management and business requirement, during the FY 2023-24, ERP team
shall be working for development of new applications like Vendor Bill tracking
Application, Dashboard Mobile App for higher management, Project Management Application,
Document Management System, Appraisal Management System, Enhancement in supplier BG and
EMD modules, ERP version upgrade, Attendance Management System, PCDO Application, Bank
Integration for Receivables. Furthermore, in the next financial year RCIL's IT team shall
be working towards strengthening of existing
ERP modules and development of other additional requirements.
23. Annual Return
The Annual Return of RCIL pursuant to Section
134(3)(a) read with Section 92(3) of the Companies
Act, 2013 and Regulation 34 of Listing Regulations, for the financial year ended on
March 31, 2023 placed at https://www.railtelindia.com/annual-return.html
24. Management's Discussion and Analysis Report
In compliance with the requirement of Regulation
34(2)(e) of Listing Regulations, the Management's Discussion and Analysis Report for
the year under review is presented in separate section which is forming part of this
Annual Report.
25. Human Resource Development
Thefor Human Resource Development ("HRD") function in the organization
has been designed to maximize employee performance. HRD is primarily concerned with the
management of people within organization and focusing on policies and systems. RCIL firmly
believes in the strength of its most asset i.e., Human Resource. RCIL cares and values for
its human resource which is the bedrock of success story. To keep the employees' morale
high, your Company extends several welfare benefits to them and their families by way of
implementing various new and revised welfare policies for its employees. As on 31st
March, 2023, the Company had total manpower strength of 765 employees including
regular, deputationist, contractual and consultants.
The details are shown in Table-4. During the year, Company has also availed the
services of 1883 outsourced employees.
Table-4
Category |
No. of Employees for the year ended 31.03.2023 |
No. of Employees for the year ended 31.03. 2022 |
Regular |
474 |
443 |
Employees |
|
|
Deputationist |
45 |
57 |
On Contract |
206 |
162 |
(Direct) |
|
|
On Contract |
27 |
16 |
(re-employed) |
|
|
Consultants |
13 |
20 |
The percentage of women employees, SC/ST/ OBC employees, persons with disabilities and
ex-servicemen out of regular employees of the
Company is Shown in Table-5:-
Table-5
Category |
No. of Employees for the Year ended 31.03.2022 |
No. of Employees for the Year ended 31.03.2023 |
% of total no. of regular employees during financial year ended
31.03.2023 |
No. of recruitment made in these categories* |
Women Employees |
47 |
49 |
10.34 |
2 |
SC Personnel |
61 |
72 |
15.19 |
11 |
ST Personnel |
17 |
22 |
4.64 |
6 |
Other Backward Classes |
118 |
132 |
27.85 |
15 |
Person with Disabilities |
7 |
7 |
1.48 |
3 |
Ex-Serviceman |
0 |
0 |
0 |
0 |
* Employees who join on absorption basis are regular employees but not part of
recruitment data.
The Company has been following the Govt. Guidelines regarding reservation for SCs, STs,
OBCs, Persons with disabilities and ex-servicemen.
26. Particulars of Employees
Your Company being a Government Company, the provisions of Section 197(12) of the
Companies Act, 2013 and relevant rules issued thereunder, are not applicable as per
notification dated June 05, 2015 issued by MCA.
The terms and conditions of the appointment of
Functional Directors are subject to the applicable guidelines issued by the DPE,
Government of India.
27. Rajbhasha (Official Language)
For implementation of the Official Language Policies of the Government of India, an
Official Language Cell is set up in RailTel Corporate Office with Mukhya Rajbhasha
Adhikari, a nominated Rajbhasha Adhikari and a Senior Manager/Rajbhasha . Each Regional
Office of RailTel has one Nominated Rajbhasha Adhikari. In RailTel, the Official Language
Implementation Committee meeting is held every quarter under the chairmanship of
Chairman and
Managing Director. Official language progress reports are regularly sent to Railway
Board. Official language Progress reports are also regularly sent to Town Official
Language Implementation Committee (NARAKAS). The meetings of the Official Language
Implementation Committee organized by the Railway Board and the meeting of the Town
Official Language Implementation Committee (NARAKAS) are regularly attended by the
officials of RailTel. RailTel's Chandigarh, Chennai, Jaipur territory offices and Regional
offices of Southern and Region headquartered at Secunderabad and Kolkata respectively had
been inspected by the Second
Sub-Committee of the Parliamentary Committee on Official Language on 29.04.2022,
18.05.2022, 28.02.2023 18.06.2022, 16.11.2022 respectively to review the use of Hindi.
The second sub-committee of the Hon'ble Parliamentary Committee on Official Language
entrusted the work of coordination of the inspection of Secunderabad and Kolkata areas to
RailTel Regional Offices at Secunderabad and Kolkata . co-ordination work was done
excellently by the RailTel officials at both the places. Appreciation
Mr. Zakir Hussain Siddiqui, Executive Director/ Eastern Region, Ms. Ruchira Chatterjee,
General Manager/Administration, Security & Marketing and Mukhya Rajbhasha Adhikari,
Ms. Pratibha Devendra Yadav, General Manager/Chennai and Mr.Vijay Kumar Saxena, Senior
Manager/Rajbhasha, for superb co-ordination and co-operation with the
Parliamentary Committee.
On the occasion of Hindi Diwas, Hindi Pakhwada was celebrated in RCIL from 16 to 30
September, 2022 and various activities/programs were organized during the pakhwada.
Rajbhasha Pakhwada 2022 was inaugurated by the Chairman and Managing Director on
16.09.2022. A Hindi Pakhwada banner was put up at the main entrance of RCIL Corporate.
During the Hindi Pakhwada Hindi essay competition, Hindi noting and drafting competition,
Hindi debate competition, Hindi quiz competitions were organized. The officers and
employees of office participated in the said competitions.
On the occasion of the closing ceremony of Hindi
Pakhwada 2022, the Chairman and Managing Director gave cash prizes and certificates to
officers and employees who secured first, second third place in different competitions.
Consolation prizes were also given. Besides, award was also given to employees who had
done Commendable work in Hindi during the year.During the closing ceremony, the regional
offices and territory were present through webex.
RailTel, Corporate Office has introduced
Rajbhasha Shield
For the Ist time RailTel, Corporate Office
RailTel Rajbhasha Shield for doing excellent and commendable work in Hindi during
the year. First
RailTel Rajbhasha Shield was presented to RailTel Eastern Region, Kolkata for the
year 2022.
As per the instructions of the Department of Official Language, Ministry of Home
Affairs, and workshops are organized every quarter in the office in which eminent scholars
from Hindi are invited for lectures. One such workshop Shri Balendu Sharma"
Dadhich" Director/Microsoft was invited.
A quarterly newsletter "RailTel Gatividhian" is being published regularly by
RCIL for the use of the Official Language, the first edition of which published from
October to December, 2018 and is being published regularly thereafter. Seventeen editions
have been published so far. Apart from this, RailTel also publishes the official magazine
"RailTel Pragati" on a half yearly basis.
Seven editions have been published so far and the
Eight issue of the Magazine is under publication.
RailTel's official language magazine "RailTel Pragati" had been awarded the
first prize under the Best Magazine Award category by the Town Official Language
Implementation Committee, Upkram-1 Delhi. It is a first for "RailTel Pragati"
and a tremendous achievement as Town Official Language Implementation Committee has 44
PSUs as its members.
28. Prevention, Prohibition and Redressal of Sexual Harassment
In order to provide protection against sexual harassment of women at workplace and for
prevention and redressal of complaints of sexual harassment, the Company has in place a
system to prohibit & prevent the social evil of Sexual
Harassment at Workplace in accordance with the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 and rules made thereunder.
The objective is to provide women a workplace free from harassment, to ensure that
every woman is treated with dignity and respect and to provide a speedy redressal
mechanism to women who have been subjected to sexual harassment.
For the said purposes, RCIL has an Internal
Complaints Committee (ICC) in place at its
Corporate Office and all four Regional Office(s) which is responsible to:-
Investigate every formal written complaint of sexual harassment.
Meet at regular intervals.
Prepare an Annual Report containing the details of complaints of sexual
harassment pursuant to the provisions of Act and provide the same to employer.
Take appropriate remedial measures to respond to any substantial allegations of sexual
harassment.
The composition of Internal Complaints Committee on Sexual Harassment comprised of one
independent nominee from YWCA as member of the committee, besides, three other executives
from corporate office of the company as member of the committee. The Committee is headed
by women Chairperson. The summary of complaints dealt during the year
2022-23 is shown in Table-6: Table-6
Particulars |
Nos. |
Number of complaints of Sexual Harassment received in the year. |
01 |
Number of complaints disposed off during the 01 year. |
|
Number of cases pending for more than 90 days. |
Nil |
Number of workshops on awareness programmes against sexual harassment
conducted during the year. |
02 |
29. Risk Management
The Board of Directors of your Company at their 78th meeting had earlier
adopted a Risk Management Policy (RMP) prepared by M/s Price Waterhouse Coopers (PwC).
The Board of Directors of your Company in their
117th meeting held on 22nd December, 2020 had adopted the revised
RMP which is in line which requirement of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. Further, the Board of Directors of your Company in their
122nd meeting held on 17th June, 2021 has considered and approved
the revision in existing RMP to make it sync with the requirement of amendment in SEBI
(LODR) Regulations, 2015. The revised Risk Management Policy is implemented in RCIL.
In order to develop and implement an Enterprise
Risk Management Framework, RCIL has constituted a Board Level Risk Management Committee
(Apex Level). The Risk Management Committee has the key role of monitoring the
development, implementation and performance of the Enterprise
Risk Management framework and maintains an enterprise-wide view of the top risks. In
order to further strengthen Risk Management and implement a suitable process, RCIL has
also formed a Functional Risk Management Committee constituted with Chief Risk Officer and
heads key functions/departments. The functional heads will facilitate the identification
and assessment risks within their departments/functions with the assistance of their
teams.
In terms of the approved Risk Management Policy, following key risks have been
identified and suitable risk mitigation measures are being adopted from time to time:
1) Project Risk
2) Strategy Risk
3) Market Risk
4) People Risk
5) Technology Risk
6) Reputation Risk
7) Insurable Risk
8) Contractor/Vendor Risk
9) Cyber Security Risk
30. Related Party Transactions
Your Company has formulated a policy on Related Party Transactions which is also
available on Company's website at www.railtelindia.com. This policy deals with the review
and approval of Related Party Transactions.
Pursuant to section 134(3)(h) of the Companies Act
2013, read with Rule 8(2) of Companies (Accounts) Rules, 2014, particulars of contracts
or arrangements with related parties is provided in specified Form no. AOC-2 and is placed
at Annexure-I.
31. Corporate Governance
A detailed report on Corporate Governance as stipulated under Regulation 34(3) read
with Schedule
V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is
appended and forms part of the Annual Report. The Company has always worked towards
enhancing the Corporate Governance and the principles underlying the same within the
organization. Your Company is in compliance with DPE Guidelines on Corporate Governance to
the extent possible. Pursuant to the ofrequirements of DPE Guidelines, 2010 a certificate
obtained from Practicing Company Secretary and is forming part of this Annual Report.
In compliance with the directives of DPE, the Company is also regularly sending its
quarterly and consolidated annual report in the prescribed manner to its Administrative
Ministry/DPE. For each quarter, CPSEs are graded under various heads viz; Composition of
Board, Non-Official Directors, Meetings, Code of Conduct, Audit Committee, Remuneration
Committee, Board Disclosures, Directors' Remuneration etc. on the basis of scores
prescribed for each head. For the year under review, RCIL has secured, based on
self-evaluation, an annual score of "94.84%" which falls under
"Excellent" grade for compliance of DPE Guidelines on Corporate Governance for
FY 2022-23.
32. Corporate Social Responsibility
As per Section 134(3)(o) read with Section 135 of the Companies Act, 2013 along with
the Rules made under Companies (Corporate Social Responsibility Policy) Rules, 2014, your
Company has formulated a CSR & Sustainability Policy which provides a broad framework
within which the Company will carry out the CSR activities. The policy aims for social and
economic development of community in the areas of women empowerment, rural development,
education, skill development, health and such other areas and adhere to sustainable and
transparent business practices. The activities to be undertaken under the policy will be
in accordance with Schedule-VII of the Act and directives issued by DPE from time to time.
During the FY 2022-23, RCIL has undertaken to spend 700.91 lakh on CSR activities (
436.87 Lakh for FY 2022-23, which is 2% of average net profit before tax (PBT) of the
company earned during the immediately preceding three Financial Years) plus
264.04 Lakh as unspent from previous years. Out of CSR budget, 446.84 Lakh was spent
during FY 2022-23 on CSR activities.
During the year, RCIL has carried out various CSR activities like Promoting Education,
establishing Health Center in Purulia, West Bengal, Congenital Heart Disease Treatment for
poor at Gurugram, Haryana, Support to cancer patients at Delhi, Donation of fully equipped
cardiac ambulance at Hospital in Delhi, Donation of books for school at Delhi, Jal-Sanchay
project in Karauli, Rajasthan and Digital classrooms in Haridwar, Uttarakhand etc. One of
the RCIL's CSR initiative namely RailTel's Akansha Super-30, Dehradun, Uttarakhand'
is related to providing free lodging and mentorship to poor but talented students from
state of Uttarakhand, for admission to IIT's and other premier engineering institutes. The
program has success rate of 96% with students getting admission to IIT-JEE and other
premier engineering institutes. The Annual Report on CSR as prescribed under Companies
(Corporate
Social Responsibility Policy) Rules, 2014 is forming part of this Report and is placed
at Annexure -II.
33. Secretarial Standards
During the year, the Company is in compliance with the applicable Secretarial Standard
issued by the Institute of Company Secretaries of India (ICSI) to the extent applicable.
34. Vigil Mechanism
Vigilance Administration is an integral part of any organization. If the vigilance set
up is effective in an organization, it will certainly ensure the functioning of the other
segments in an efficient way.
Vigilance Administration consists of preventive and punitive anti-corruption measures.
The measures include detecting irregularities, analyzing, and finding out reasons for such
irregularities and making effective systemic improvements to curb them. It also includes
identifying public servants accountable for misconduct and taking appropriate punitive
actions.
During the year, the Vigilance Department carried out various preventive activities
including periodic and surprise inspections which led to various system improvements. This
shall enable RCIL to proactively ensure transparency in various spheres of Company's
activities as well as also take punitive measures wherever required. The Status of
Vigilance activities during the year is shown in Table-7:
Table-7
S.No. |
Particulars |
Nos. |
Remarks |
1 |
Number of Complaints received during the year |
48 |
All complaints dealt as per complaint handling policy in a timely
manner. |
2 |
Number of investigation reports carried out during the year (incl.
under directions of CVC & Railway Board) |
10 |
Related to tender/contract management and procedure violations. |
3 |
Number of Officers against whom disciplinary proceeding initiated
arising out of investigations (incl. CBI cases) |
|
|
|
a) Major departmental action |
0 |
|
|
b) Minor departmental action |
0 |
|
4 |
Number of Inspections conducted during the year |
55 |
Across Corporate Office, Regional |
|
a) Periodic inspection |
|
|
|
b) Surprise inspection |
20 |
& field units. |
|
c) CTE Type inspection |
09 |
|
5 |
Number of System Improvements taken up during the year |
72 |
In respect to HR/Admin policies & procurement matters. |
(i) Inspections by Vigilance Department
CVO visited Bhubaneshwar (BBS) Territory from 03.12.2022 to 05.12.2022 during which
inspection was done for Wi-fi, PoP and VSS Central Monitoring System at Bhubaneswar. He
also inspected Bhadrak
Railway station where 36 VSS camera has been installed by RailTel.
CVO also inspected Cuttack and Khurda Railway Stations from 16.01.2023 to 17.01.2023
during which inspection was done for Wi-fi, PoP in both the stations along with VSS at
Khurda.
CVO along with Vigilance team inspected Northern
Region Network Operation Center (NOC) on 19.01.2023 where SDH & MPLS NOC, DG Sets
and
Thomson Road Equipment Room were inspected. Vigilance Team also inspected Northern
Region
Store at Thomson Road, New Delhi on 15.03.2023.
As a part of periodic inspection, Vigilance team inspected Data Center Gurgaon on
18.03.2023 where working of DG sets and Data Center Equipment Room were checked.
Vigilance team made a surprise inspection of
Andheri PoP, Churchgate PoP, Mumbai Central PoP, Equipment Room at Mahalaxmi and
Western Region store at Mahalaxmi on 20.03.2023 and 21.03.2023.
(ii) Other important work done in Vigilance department
IT Initiatives: Online Complaint Portal is already linked to website
for complaints handling. Vigilance profiles for all E-5 and above level Executives updated
on SOLVE (System for Online Vigilance Enquiry) portal of DoPT.
Online Vigilance database of all Executives are updated in ERP. After receiving request
from
HR Department, 100% vigilance clearance is processed by Vigilance Department on ERP.
Trainings: 14 internal trainings conducted on procurement, contract
and preventive vigilance matters covering all employees.
(iii) Vigilance Awareness Week
As per Central Vigilance Commission's directives, Vigilance Awareness Week was observed
in RCIL from 31st October to 6th November, 2022 in its true spirit and sense with the
theme "Corruption free India for a developed Nation";
During the week, a number of vigilance awareness activities were carried out and events
organized involving RCIL's Officials as well as for
Citizens. The week began with integrity pledge to RCIL officials on 31.10.2022. A brief
of such activities is as under:
1) During the Vigilance Awareness Week on 31.10.2022, CMD and CVO launched a compendium
on systemic improvements which covers all systemic improvements issued since 1st
January, 2020 through 40 notes/letters identifying 113 systemic improvements in different
areas of operation of RailTel.
2) A Nukkad Natak on VAW theme "Corruption free India for a developed
Nation"; "was organized
by employees at foyer of Corporate Office awareness purpose on 31.10.2022.
3) Presentations/Lectures on OSINT- An introduction to the Collection of Digital
Intelligence by Dr. Deepak Raj Rao, Asstt. Professor, NFSU Rohini New Delhi and Detection
of Forgery and Decipherment of Alteration in Documents by Shri Sanjeev Kumar, Associate
Documentation Officer, NFSU Rohini Branch were organized on 01.11.2022.
4) Anish Prasad, IPS, Director Vigilance (Police), Railway Board delivered a talk on
Vigilance matters on 02.11.2022.
5) A Quiz competition was held among all employees of Corporate Office on 03.11.2022.
6) On 04.11.2022, CMD/RailTel and CVO/RailTel felicitated Sh. Alok V Agnihotri, Addl.
GM for Preventive Vigilance during his tenure in
Vigilance Department (till 30.06.2022), who was instrumental in bringing many systemic
improvements in the working of organization.
7) During the observance of VAW-2022, various competitions were held on the theme of
"Corruption free India for a developed
Nation"; "where employees and their family members participated. The winners
for Speech/Debate, Article/Essay, Poem, Quiz, Nukkad Natak &
Posters competition were also felicitated with certificate of appreciation on
04.11.2022.
8) During the closing ceremony of Vigilance Awareness Week, RailTel Vigilance
Department released Thirteenth edition of Vigilance Bulletin on the occasion.
9) Public grievance redressal camps: Organized Public grievance redressal camps for
customers/ Citizens for RailWire with help of RailWire
Partners.
10) Vendors Meet: Organized Vendor meets at
Regional Offices and Corporate Office
Vigilance Awareness Week 2022.
11) Interaction session with kids: Interaction session
with kids of employees
those participated in competitions was organized with CVO and CMD.
35. Statutory Disclosures
Your Directors have made necessary disclosures, as required under various enactments
including the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.
36. Auditors
36.1 Statutory Auditors
The C&AG has appointed M/s. S.R. Goyal & Co. of New Delhi as Central Statutory
Auditors of the
Company to audit the Financial Statements for the year ended on 31st March,
2023.
Besides that, the C&AG has also appointed the following firms of Chartered
Accountants as Branch Auditors for audit of the Regional Office(s) of
Company:
Auditor |
Region |
M/s. S.R. Goyal & Co. |
Northern Region & Corporate Office |
M/s. Laxminiwas & Co. |
Southern Region |
M/s. J L Sengupta & CO. |
Eastern Region |
M/s. Banshi Jain & |
Western Region |
Associates |
|
In terms of the authorization given by the members in their last Annual General
Meeting, the Board on the recommendation of Audit Committee has already considered and
approved the payment of fee for all the above Auditors to the aggregate extent of 39 Lakh
excluding GST.
36.2 Cost Auditors
The Company has appointed M/s. Dhananjay V. Joshi, Cost Accountants as Cost Auditors to
audit the cost record maintained by the Company for the
Financial Year 2022-23.
The Company has filedForm CRA-2 with the MCA in this regard.
36.3 Secretarial Auditor
During the year, pursuant to provisions of Section 204 of the Companies Act, 2013 read
with rules made thereunder, RCIL has appointed M/s. T.
Chatterjee & Associates, Practicing Company Secretaries, as Secretarial Auditor of
the Company for the Financial Year 2022-23. The Secretarial Audit has been conducted by
M/s. T. Chatterjee & Associates, Practicing Company Secretaries and issued a
Secretarial Audit Report in the format prescribed under Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
The Secretarial Audit report of the Company for the year ended 31st March,
2023 in Form no. MR-3 and the Management's reply on the observation/ comments of
Secretarial auditor shall forms part of this report and are placed at Annexure- III and
Annexure-IV, respectively.
37. Comments of C&AG
The comment(s) of C&AG are attached and forming part of this Annual Report.
38. Auditors' Report
The Auditors' Report of the Company for the year ended 31st March, 2023, is
attached with the
Financial Statement of the Company. There is no qualification in the Auditors Report on
the Financial Statements of the company. During FY 2022-23, no fraud has been reported by
the Auditors of the Company.
39. Energy Conservation, Technology Adoption, Foreign Exchange Earnings and Outgo
The Company is presently engaged in providing telecom services. The disclosure on
Conservation of Energy and Technology Absorption as required under the provisions of
Section 134(3)(m) of the
Companies Act, 2013 and as prescribed under Rule 8 of Companies (Accounts) Rules, 2014
is forming part of this Report and is placed at Annexure- V.
40. MOU with Administrative Ministry
RCIL is signing a MoU with the Government of India,
MoR whereby laying inter alia the physical and financial targets. The MOU pertaining to
FY 2022-has been signed with MoR within stipulated time.
For the year 2021-22, RCIL has got "Very Good" rating from DPE. For the MoU
targets 2022-23, RCIL has complied to various guidelines communicated by DPE as below: a)
DPE guidelines issued from time to time on CSR expenditure. b) Steps and initiative taken
for Health & Safety improvement of Human Resources in CPSEs as prescribed by the
Administrative Ministry. c) Procurement of goods or services through
MSEs with 54% percent of total procurement of goods and services against target of 25%.
d) Procurement of goods or services through
Women MSEs with 6 percent of total procurement of goods and services against target of
3%. e) Expenditure management economy measures and rationalization of expenditure. f)
Guidelines on accessible India campaign (Sugamya Bharat Abhiyan) g) Guidelines on
implementation of apprenticeship
Act, 1961
The company has also complied with the applicable provisions of the Companies Act, 2013
and SEBI (LODR) Regulations, 2015, the compliance of which are within the control of the
company.
41. Event occurring after the Balance Sheet Date
As such, no significant events occurred between the end of the financial year to which
this Financial
Statements relates and date of this report.
42. General Disclosure
Your Directors state that no disclosure or reporting is required in respect of the
following items as there were no transactions on these items 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.
(d) Neither the Chairperson and Managing Director
nor the Whole-time Directors of
the Company receive any remuneration or commission from subsidiary company.
(e) 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. (f)
Application made or proceeding pending under the Insolvency and Bankruptcy Code, 2016.
(g) One time settlement of loan obtained from the
Banks or financial institutions.
43. Transfer of Unclaimed Dividend to Investor Education and Protection Fund
During the year under review, no amount was required to be transferred to the Investor
Education and Protection Fund by the Company.
44. Director's Responsibility Statement
In terms of the provisions of section 134(3)(c) read with section 134(5) of the
Companies Act, 2013, as amended, your Directors confirm that:
(a) in the preparation of the annual accounts, the
applicable accounting
standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently
and made judgments and estimates that are 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 and of
the profit and loss of the company for that period;
(c) the directors had taken proper and sufficient for the maintenance of adequate
accounting records in accordance with the provisions of
Companies Act, 2013 for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis;
(e) that internal financial controls are adequate
and operating effectively; and
(f) the directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.
45. Acknowledgements
Your Directors would like to place on record their sincere appreciation and gratitude
to the Indian
Railways, Government of India, Department of Investment and Public Asset Management
(DIPAM),
Ministry of Communications and IT and other
Ministries/Departments, subscribers of Company's telecom services, the stakeholders,
and bankers and to all the State Governments, Local Bodies and Regulatory authorities for
their continued cooperation and invaluable support.
Your Directors thank all shareholders, business partners and all members of the RCIL
Family for their faith, trust and confidence reposed in the Board. Your Directors express
their deep appreciation for the hard work and dedicated efforts put in by employees at all
levels and look forward to their continued contribution in achieving the mission and
objective of the Company.