kcl infra projects ltd Management discussions

Industry Structure and Developments

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.India plans to spend US$ 1.4 trillion on infrastructure through ‘National Infrastructure Pipeline in the next five years. In FY21, infrastructure activities accounted for 13% share of the total FDI inflows of US$ 81.72 billion. India will need to construct 43,000 houses every day until 2023 to achieve the vision of Housing for All by 2023.

Hundreds of new cities need to be developed over the next decade. Over the next 10 years, demand for urban freight is predicted to increase by 140%. Final-mile freight transit in Indian cities accounts for 50% of the total logistics expenditures in the countrys increasing e-commerce supply chains. India is expected to become the third-largest construction market globally by 2023.

As India is developing country, with a rapidly growing urban population, the problems relating to vehicle parking have become common these days and the number of vehicles is also increasing daily adding to the parking vows at public places. The traffic on roads and parking space has been an area of concern in majority of the Indian cities. Multi-level car parking system (MLCPS) is one such technology which has been implemented in India and is the core operational area for KCL Infra Projects Limited. It is used for optimum utilization of parking space by utilizing vertical space rather than horizontal space.

In automated multilevel car parking, the car is lifted and placed at the available slot. This is done with the help of robotics and a lot of software programming. Some of the benefits of MLCPS are optimum utilization of space, low construction cost, low working and maintenance cost to name a few.

Opportunities

Mechanized car parking systems are in itself something unique and interesting that has been introduced and implemented in India, but there is always a scope for improvement. New technologies can be implemented in order to boost the currents scenario viz. Smart parking can be one of the options which uses sensors, wireless communication technology, data analytic sect. To solve parking issues.

Smart parking solutions can be used to locate available parking space with the help of sensors. This saves customers time as well as minimizes wastage of fuel. Various technologies are being used to ease parking problems in public places.

Not just the technologies, but government of India is also giving huge impetus for the development of this sector through focused policies such as open FDI Norms, large budget allocation to infrastructure sectors, smart city missions, RERA etc. Can be seen as major opportunities in this sector.

Threats

Opportunities are many, but at the same time the threats can- not be overlooked. The first and the foremost is the risk associated with the tender allocation process as the construction and infrastructure sector in India is largely dominated by a large number of small players.

The lack of co-ordination in various government authorities also causes delay in the execution and implementation of the projects. Huge cost involvement and difficulty in raising funds are some of the major threats.

Risk and concerns

Risk is an inherent part of any business, and so is the case with this industry too. There are various risks associated while undertaking any construction projects which have to be mitigated and taken due care of. The first is the contractual risk, shortage of skilled labor, availability and inducement of funds as and when required, regulatory amendments, cost volatility, competitive intensity, etc.

Not just the mere existence of risk but their identification, analysis and mitigation in an effective manner is the major area of concern for the company and forth is the company has a risk management committee in place and also a policy to manage the risks encountered or the potential ones in a planned way.

The companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested and certified by statutory as well as internal auditors and cover all offices, factories and key business areas. Significant audit observations and follow up actions there on are reported to the Audit Committee. The Audit Committee reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations, including those relating to strengthening of the companys risk management policies and systems.

Outlook

The companys approach is more focused towards constant and rapid upgradation of the infrastructure and development of more and more mechanized car parking projects particularly in the smart cities of India.Our company is India one of the leading Company in the field of technology, engineering and Construction Company has multiple operating segments under the roof of KCL World. Looking at the current global scenario Company has diversified its business object in healthcare sector.

Internal Control Mechanism

The company has adequate internal control systems in place, commensurate with its size and nature of operations. The Internal auditor, inter-alia, covers all significant areas of the companys operations and submits the report to the Audit Committee for the review.

Internal control procedures at KCL Infra projects Limited are designed to ensure that all assets and resources are acquired economically, used efficiently and protected adequately and all internal policies and statutory guidelines are compliedinletter and spirit.

The companys Audit Committee, the composition and functioning of which is in accordance with the provisions of Companies Act, 2013 as well as Regulation 18 of SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015, further strengthens the robustness of its internal control mechanism.

Human resource Development

Your Company recognizes human assets as a primary source of its growth & competitiveness. Companys HR practices, systems and people development initiatives are focused on deployment and scouting for the "Best Fit" talent for all key roles. Pay for performance, reward and recognition programmes, job enrichment and lateral movements provide opportunity for growth & development of the talent pool.

The Company has been working towards institutionalizing a performance-oriented culture. The entire HR system including recruitment, performance management system, reward and recognition has been aligned with the business objectives. Key management personnel at the projects are being valuated on uniform parameters linked to organisational priorities. Similarly, key personnel at the corporate office have been given organisation target in addition to their functional objectives. The Company also has association with various professionals who work in association and co-ordination with the employees of the Company.

Cautionary Statements

The above Management Discussion and Analysis contains certain forward looking statements within the meaning of applicable security laws and regulations. These pertain to the Companys future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, fiscal deficits, regulation, etc. In accordance with the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time on behalf of the Company.