CHAIRMAN’S MESSAG E

Dear Shareholders,
 
It gives me immense pleasure in presenting the Annual Report of your company  for the year 2018-19 on the occasion of 6th Annual General Meeting. I extend a very warm welcome to all the shareholders.
 
The audited accounts of the Company for the financial  year 2018-19 along with the Directors’ Report, Statutory Auditors Report and comments of Comptroller & Auditor General of India thereon, have already been circulated to you and with your permission, I take them as read.
 
During the year, company has achieved highest ever turnover of ` 83.03 crore as compared to previous year’s turnover of ` 68.80 crore, ,higher by 20.68.80. The profit before tax is ` 49.46 crore as compared to ` 39.22 crore of the previous year.
 
During the year Railway Energy Management Company Limited (REMCL) was able to facilitate flow of 1300 MW of power in 12 entites across the country  as compared to 1160 MW of power in 10MW states during last financial year. With a vision to transform Indian Railways into “Green Railways” by reducing its carbon footprint and improving finances through reduction in cost of energy, Indian Railways has planned various initiatives through REMCL.
 
Your company is working in line with IR’s vision of “Green Railways” by implementing roof top solar and wind power plants in various phases. REMCL has awarded 157 MW of solar roof top and 93 MW of wind plant for Railways. The 26 MW windmill plant installed by REMCL generated 35.34 MUs (Million Units) of green power during the financial year 2018-19. After implementation of these projects, the carbon dioxide emissions would be reduced by 3.0 Lakhs tonne/year.
 
Your Company has successfully facilitated the flow of power under Open Access in the states of Rajasthan, UP (CTU Point), Maharashtra, Gujarat, MP, UP ,Karnataka, Bihar & Jharkhand, DVC command area, Haryana & Delhi as a deemed licensee which has resulted into a savings of over ` 4000 crores to Railways in their energy bills for the year 2018-19.Almost entire power of 2000 MW of IR has been tied up and out of which 1160 MW power has started flowing for Indian Railways as Deemed Distribution Licensee.
 

Your Company has also provided Project Management Consultancy (PMC) Services for setting up of Wind Farm of 10.5 MW for Southern Railways in the State of Tamil Nadu and this plant has been successfully commissioned in January 2019. Your Company is also working on harnessing 2.0 MW Solar Power along the Track of Indian Railways as a pilot project.Your company consistently endeavours to adopt and maintain the highest standards of ethics in all spheres of business activities. Your company accords highest importance to transparency, accountability and equality in all facets of its operations. Your company is implementing the percepts of Corporate Governance in letter and spirit.

Your company meets parameters for ‘Excellent’ rating in its performance evaluation under the MOU signed with RITES Ltd for the year under consideration (2018-19). However, communication from DPE in this regard is expected in due course.

Your company understands its responsibility towards society and adopted a “Corporate Social responsibility and Sustainability policy” of the holding company, to show its commitment towards operating in economically, socially and environmentally sustainable manner. As a responsiblecorporate citizen, your Company has spent about ` 54.94 Lakh on various CSR activities during the FY 2018-19.Your Directors have recommended dividend of ` 12.41 crore for the financial year 2018-19 to the shareholders of the company.I am grateful for the guidance provided by Member (Traction) and co-operation extended by the officers of Indian Railways in conceptualizing and implementing various initiatives taken up by REMCL.

I, on behalf of the Board, would like to place on record sincere thanks for the valuable services rendered by Statutory Auditors, i.e. M/s Pawan Puri & Associates, Chartered Accountants.

Before I conclude, I must express my sincere thanks to our esteemed shareholders, my colleagues on the Board of Directors, officers from Ministry of Railways, Zonal Railways, Divisional Head Quarters, Bankers of the company & REMCL team for their valuable support, advice and co-operation.

I acknowledge that organizations are built on a strong-management stakeholder’s relationship, which is a two way channel. I hope the coming years will further strengthen our relationship with all stakeholders for a sustainable growth and performance of the Company.

Firmly anchored in the traditional wisdom of the past and seizing the opportunities in the present, your company is poised to excel in the years ahead.

 

With Best Wishes,

(Rajeev Mehrotra)

Chairman

Date: 29th July, 2019