Kalpataru Power Management Discussions

Economy overview

Global economy overview

Over the course of the past year, the global economy has experienced numerous challenges in the form of geopolitical tensions to rising volatility and inflation. Alongside, the consequences of a sudden surge in COVID-19 cases in China also impacted growth projections. However, the recent opening of the borders has created a conducive environment for a faster-than-expected recovery. As per the latest estimates by the International Monetary Fund, the global GDP growth rate is 3.4% in CY22 showing resilience towards the recessionary fears.1 On account of these headwinds, supply chain disruptions were also rampant. Moreover, due to geopolitical conflicts, crude oil prices soared, global trade was impacted and inflationary pressures worsened. To rein in inflation, Central Banks across the world, including the US Federal Reserve, responded with synchronised rate hikes.


According to the latest IMF projections, global growth is estimated to slow down to 2.8% in CY23, before rebounding to 3.0% in CY24. Due to a surge in inflation and the energy crisis following Russias invasion of Ukraine, the global economy continued to be burdened by macroeconomic headwinds. However, resilient economic growth was noticed owing to strong labour markets, increased investments in businesses and robust household consumption. Inflation too appears to have cooled down in many countries, mostly on account of tight monetary policies.

According to the IMF, India and China are anticipated to contribute more than 50% of the worlds GDP growth in CY23.

Indian economy overview

The Indian economy continues to be one of the fastest growing major economies in the world, outpacing major emerging and developing economies, including China. According to the first advance estimates by the National Statistical Office (NSO), Indias economy witnessed a growth rate of 7.2% in FY23. While headwinds in the form of geopolitical developments and inflation remained, the Indian economy demonstrated remarkable resilience. Supported by robust domestic demand and positive investment activity, a broad based expansion has been witnessed. Besides, increased government spending for infrastructure and construction has further added impetus to economic activity. During the year, the Central Governments thrust on capital expenditure resulted in 63.4% growth in spending on roads, railways, and defence. It not only facilitated broad-based growth by facilitating private sector capital formation but, was also reflected in robust performances from the manufacturing industry.

The Indian economy has nearly ‘recouped what was lost, ‘renewed what had paused, and ‘re-energised what had slowed during the pandemic and since the geopolitical tensions in the West.


According to the International Monetary Fund (IMF), in FY23, the Indian economy became the worlds 3rd largest economy in terms of purchasing power parity. According to the recent monetary policy report by the RBI, it has been projected to achieve a growth rate of 6.5% in FY24. With a pick-up in economic activity and a conducive demand environment, an encouraging momentum has been noticed. Besides, continued growth in GST collections, growing railway freight, air traffic and encouraging PMI data have rekindled hopes of an economic rebound. Moreover, manufacturing activity continues to grow steadily.

On the back of overall macroeconomic stability and favourable conditions for economic growth, India is estimated to be the fastest-growing major economy. It is expected that Indias GDP will touch USD 26 trillion in terms of the exchange market by 2047.

Effective Capital Expenditure

(in H lakh Crore)

Source: Press information bureau, February 2023

The Government of India has increased the annual budget by 7.5% to H45 lakh Crore. Allocation for capital investment has also increased to H10 lakh Crore, up by 33.40% from the previous year. It is expected to result in a gradual upswing in economic activity and drive the growth of the Indian economy. To further improve last mile connectivity, the government plans to launch the Pradhan Mantri Particularly Vulnerable Tribal Group (PVTG) mission. It has also identified 100 transport infrastructure projects to enable end-to-end connectivity for ports, steel, coal and fertiliser sectors.

The Production Linked Incentive (PLI) scheme implemented by the Indian government has emerged as a crucial policy tool to drive the growth of the private sector and bolster the countrys economic outlook. With a focus on creating large-scale companies and enhancing competitiveness, the government has set a five-year target in terms of productivity and efficiency. Designed to promote manufacturing and reduce dependence on imports, the PLI scheme offers fiscal incentives to domestic companies that invest in production capacity and technological advancements. The Union Budget 2023-24 has allocated H8,083 Crore for various PLI schemes. The amount is a threefold jump from the revised budget estimate of H2,616 Crore for these schemes in FY23. The Indian economy, continues to tread ahead with cautious optimism and remains well on track to rebound and revive in the days ahead.

Industry overview

Global power transmission and distribution industry

The year 2022 was full of perils and promises for the electric power sector. During the year, electricity consumption continued to rise as the pandemic recovery progressed. The costs also spiked, largely due to natural gas prices more than doubling due to global shortages, exacerbated by rising geopolitical tensions. Coal prices also rose as demand surged for alternatives to gas. Renewable energy prices followed suit due to supply chain disruptions, inflation, and rising interest rates. Despite these challenges, new technologies and supportive policies have opened new opportunities and helped the industry achieve its goals.2

Regional focus


In 2022, the electricity demand grew by 1.5%, down from 5.7% in 2021, due to geopolitical developments in the West and production capacity constraints in South Africa. Natural gas-fired output remained stable at 42%, while coal and nuclear power supply declined due to supply shortages, and oil-fired generation increased by 24%. Renewable supply during the same period increased by 2%.

Renewables lead race in terms of generation increases, followed natural gas

Year-on year change in electricity generation, Africa, 2019-2025

Notes: Other non-renewables including oil, waste and other non-renewable energy sources. The intensity is calculated as total emissions divided by total



The power sector in Africa is expected to see demand growth in the coming years with average regional growth of 4.5% in 2024 and 2025. The majority of incremental generation is expected to come from renewable sources, with natural gas being the largest source of electricity generation. Coal-fired generation output is also expected to remain stable but, is anticipated to decline in overall share. The changes in electricity generation, such as the decline in coal and nuclear power and the increase in renewable and gas-fired generation, have significant implications for power transmission and distribution. As the majority of incremental generation is expected to come from renewable sources, this will require a significant expansion of transmission and distribution infrastructure to ensure that the electricity generated is transported efficiently to meet the growing demand. Additionally, the shift towards renewable energy sources will require a more flexible and decentralised power grid to integrate the variable output of renewable sources. New technologies and investments in smart grids, energy storage systems and grid modernisation to ensure that the power system remains reliable and resilient.


The energy crisis triggered by geopolitical tensions in Europe resulted in a decline in electricity consumption, within the European Union, by 3.5% in 2022. However, it is expected to rebound slightly from 2023, with an average annual growth rate of 1.4%. The crisis led to a shift in policy, with the European Commission publishing its REPowerEU plan to hasten the clean energy transition and create a temporary framework for accelerating the deployment of renewables. Short-term measures were also implemented to fulfil these objectives. The share of renewables in the overall power generation mix is expected to increase significantly in the EU, leading to a decline in fossil fuel-fired generation. It is also expected to minimise emissions by 28% by 2025, in comparison to


levels achieved in 2022.

Following two years of increase, CO2 intensity starts

to decline again from 2023

Year-on year change in electricity generation, European Union, 2019-2025

The recent energy crisis in Europe has highlighted the importance of electricity security, affordability and decarbonisation. To fulfil these objectives, the new legislative framework is expected to be enforced to ensure energy security in the future. It is essential to shift towards a higher share of renewable energy, and increase electrification while ensuring affordable prices and adequate energy supplies and storage capacity.3 In line with the commitment to a cleaner and more sustainable energy system, the expansion and interoperability of electricity transmission and distribution networks is critical. By increasing the capacity and reach of these networks, renewable energy sources such as wind, solar, and hydropower can be harnessed and distributed to consumers more effectively. Moreover, a focus on energy efficiency measures within the transmission and distribution system can provide significant benefits for both consumers and network providers.

Southeast Asia

Electricity demand in Southeast Asia grew by 5.5% in 2022 due to the economic recovery in the region, followed by the reopening of borders for international tourism. Coal, gas and renewable energy constitute the major sources of power generation in the region. While the share of coal-fired generation is expected to decrease slightly, the absolute generation from coal is set to increase every year at an average of 4%, till 2025, led by capacity additions in Indonesia and Vietnam.

Year-on year change in electricity generation, in Southeast Asia, 2019-2025

Renewable energy is expected to meet about a third of the additional demand growth, with the share of renewables in the generation mix rising slightly below 28% in 2025. Despite this increase, the emission intensity of the region will be among the highest globally at 585 g CO2/kWh. Several countries in the region have set carbon neutral or net zero targets and aim to accelerate renewable energy capacity deployment, targeting the addition of 50 GW of solar and wind capacity by 2030 and over 250 GW by 2050.

The increase in electricity demand and the shift towards renewable energy sources in Southeast Asia will require significant investment in power transmission and distribution infrastructure to ensure reliable and efficient delivery of electricity to consumers. The addition of renewable energy capacity, which is often located in remote areas, will require the development of new transmission infrastructure to connect these sources to the grid. Furthermore, the integration of intermittent renewable sources such as solar and wind into the existing grid requires the deployment of advanced technologies for power system management and grid stability.

Latin America

Latin America has the potential to become a global leader in renewable energy due to its abundance of wind and solar power potential. Brazil, Chile, Colombia, and Mexico lead the region in operating utility-scale solar and wind farms, with a combined capacity of over 57 GW. Brazil, Chile, and Colombia continue to increase their renewable energy development. Latin America has announced a significant amount of utility-scale solar and wind capacity, in pre-construction, or under construction projects, totalling over 319 GW of power. If all the projects are realised, the regions large-scale solar and wind power capacity could increase by over 460% by 2030 compared to the current capacity of 69 GW.4 High solar irradiance and offshore wind development potential of most countries in the region bolster its ability to produce renewable energy. The leaders in utility-scale solar and wind attribute their success to established energy auctions, private investment, the economic potential of green hydrogen exports, decreasing installation costs, and policy responses to climate change. However, Mexicos progress has been hindered by recent regulations proposed by the CRE that exclude net-metering compensation for medium-voltage distributed generation projects, making it less profitable for players to sell energy back to the grid. This will likely delay the payback period and create uncertainty, leading to a slowdown in new distributed generation installations.

Mexico, the region as a whole has the potential to meet its net-zero targets by 2030 with its existing and planned renewable energy projects.

As these economies increase their utility-scale solar and wind power generation, there is a need for an efficient and reliable transmission and distribution infrastructure to transport the electricity from the generation sites to the consumers. The success of renewable energy projects is also affected by policies related to compensation for distributed generation projects, such as net metering. Without fair compensation for selling excess energy back to the grid, the profitability and viability of distributed generation installations are negatively impacted, which can slow down the growth of renewable energy in the region.

Middle East and North Africa (MENA)

Electricity consumption in the Middle East grew by 2.6% in 2022, driven by population growth, rising demand for cooling and water desalination, and energy-intensive industries. This demand is expected to continue at a slightly reduced rate in the 2023-2025 forecast period, supported by surging GDP growth and higher public spending by the regions leading oil and gas exporters. Several projects to enhance regional interconnections, including a 150 MW line from Jordan to Iraq, a 3 GW interconnection between Saudi Arabia and Egypt, and a 1.8 GW direct link between Iraq and the GCC grid, are progressing. CO2 emissions from power generation in the region is expected to decrease by 7% in 2025, compared to 2022, due to the declining share of coal and oil in the total energy mix and an increasing shift towards nuclear and renewable sources of energy.

Annual emissions from power generation in 2022 increased marginally by approximately 0.7%. This slight uptick was mostly due to higher emissions from gas powered sources. However, it was counterbalanced by decreasing emissions from both coal and oil-fired power generation.

Year-on year change in electricity generation, Middle East, 2019-2025

The regions electricity consumption is expected to increase in the forecast period of 2023-2025. It will be primarily supported by surging GDP and higher public spending by the regions leading oil and gas exporters, amid the current levels of high energy prices. Power generation emissions are predicted to drop by 2% from 2022 to 2025, reaching around 710 Mt CO2. Significant decrease in emission is also expected in the UAE, Israel, and Saudi Arabia due to the growth of renewables, coal phase-out, and reduction in oil-fired generation.

The increasing demand for electricity in the Middle East and the shift towards nuclear and renewable sources of energy highlight the importance of efficient and reliable power transmission and distribution systems.


Australia Energy Market Operator (AEMO) has published in their 2022IntegratedSystemPlan(ISP),whichoutlinestheinvestment needed to shore up the future of the National Electricity Market (NEM) during the next 30 years. As part of its call for action, AEMO states more than $12.7 billion of investment in new transmission lines should soon begin to ensure electricity supply is secure during the next decade. The report also recommends speeding up five key transmission projects in NSW, Victoria and Tasmania – HumeLink, VNI West, Marinus Link, Sydney Ring and New England REZ Transmission Link. It will provide valuable insurance against coal-fired power stations closing sooner than currently planned. AEMO expects 60 per cent of the eastern seaboards coal fleet will exit the electricity grid by 2030, with the last remaining plant to be closed by 2042. The ISP also estimates Australias eastern states will need at least 10,000 km of new transmission lines to link up a nine-fold expansion of wind and solar farm capacity by 2050. The 2022 ISP states Australias energy transformation based on an ‘optimal development path of essential transmission investment that will efficiently enable low-cost renewable energy to replace exiting coal generation. These transmission projects are forecast to deliver A$28 billion in net market benefits, returning 2.2 times their cost of A$12.7 billion, which represents just seven per cent of the total generation, storage and network investment in the NEM.


A disrupted supply chain, rising costs and severe weather conditions are expected to affect the power sector in 2023. However, innovation and investment in the sector, buoyed by recent legislation, are anticipated to help the sector fulfil its mission of providing secure, reliable, clean and affordable electricity. Power and utility companies will likely lean further into evolving technologies and new business models. As the clean energy transition progresses, opportunities are likely to emerge in the sector. To accelerate the energy transition, the sector is looking forward to partnerships for accessing resources, technologies and assets in related industries such as oil and gas, manufacturing, automotive, technology, mining and real estate.

Currently, the majority of the energy generated as electricity, which accounts for 62%, is derived from fossil fuels. However, in order to mitigate the effects of climate change and move towards a more sustainable future, it is necessary to drastically reduce this percentage to almost zero 5


Of global power will be met from renewable capacity by 2025

According to the International Energy Agency (IEA), by 2025, the share of power generated from renewable sources will reach one-third of the total global electricity output. This signals a huge move towards clean and long-term energy sources. Despite facing some setbacks due to geopolitical tensions and trade-related uncertainties, the growth of solar energy capacity is expected to persist over the coming years. In fact, it is anticipated that the worlds solar power generation will exceed one terawatt by 2023, reflecting a significant milestone in the expansion of renewable energy technologies.6

Renewables will make up 35% of the power generation mix by 2025, up from 29%, leading to a drop in coal and gas-fired generation and a plateau in global CO2 emissions. China and the EU is expected to lead the way with increased government spending on renewables. Nuclear output is also likely to grow by 3.6% annually, mainly in France and Asia.

Indian power transmission and distribution industry

India is considered to be the third largest producer of renewable energy in the world. The country gets nearly 40% of its installed electricity capacity from non-fossil fuel resources. The push for green energy has reduced the emission intensity of GDP by 24%. This poses a big challenge for the power grid sector, as it is increasingly powered by a renewable source of energy. The

Government has allowed 100% FDI in the power sector, which has boosted FDI inflow in this sector.7 The Government of India launched the reform-based and results-linked revamped distribution sector scheme with the objective of improving the quality and reliability of power supply to consumers through a financially sustainable and operationally efficient distribution sector. The Revamped Distribution Sector Scheme (RDSS) was developed in collaboration with several Ministries and Distribution companies (DISCOMs) through a consultative process. The scheme has an outlay of H3,03,758 Crore and estimated Gross Budgetary Support from the Central Government of H97,631 Crore. The aim is to eliminate the gap between the cost of electricity and the price at which it is supplied by 2024-25.8

The Indian government has taken significant steps to accelerate the transition towards a green energy-powered economy. It has, therefore, permitted 100% FDI for renewable energy projects, waived ISTS charges for solar and wind power projects commissioned by June 2025, and set a trajectory for RPO up to 2030. Additionally, schemes like PM-KUSUM, Solar Rooftop Phase II, and CPSU Scheme Phase II have been launched. Transmission lines and sub-station capacity are also being expanded under the Green Energy Corridor Scheme. The government has also introduced standards for solar PV systems, established a Project Development Cell, and issued bidding guidelines for tariff-based competitive procurement of power from solar and wind projects. These efforts will help attract investments, ensure timely payment to RE generators, and integrate 500 GW of renewable energy capacity by 2030. The Indian government plans to invest H20,700 Crore, including H8,300 Crore in central support, to construct a 900 km interstate transmission system for evacuating 13 GW of renewable energy from Ladakh. The green energy corridor will stretch from Pang in Ladakh to Kaithal in Haryana and will evacuate power from a planned 10 GW RE park in Leh and 4 GW power from wind energy systems in the union territory.9


The sector is experiencing significant transformations in terms of demand growth, energy mix, and market operations. The governments many projects and schemes aim to ensure consistent access to adequate power at all times, while simultaneously advancing the clean energy transition by reducing reliance on fossil fuels and ushering in a shift towards more eco-friendly, renewable energy sources. India has set a target of installing 500 GW of non-fossil fuel-based electricity capacity by 2030, with the aim of generating cleaner fuel comprising 50% of the total installed capacity. To achieve this ambitious goal, the Ministry of Power has constituted a high-level committee to plan the required transmission system for integrating over 500 GW of renewable energy capacity by 2030, with a projected investment of approximately H2.44 lakh Crore. The plan includes the creation of additional transmission systems for High Voltage Direct Current Transmission corridors, 765 kV ac lines, 400 kV lines, and 220 kV cable, as well as offshore wind evacuation and battery energy storage capacity. According to MoP, this comprehensive plan is projected to provide investment opportunities for both Renewable Energy Developers as well as Transmission Service Providers, making India one of the most attractive destinations for investment in Renewable Energy.

It is being further developed to attract more FDI in the upcoming fiscal years. The government has also planned the addition of approximately 16,673 MW of hydroelectric capacity, which is expected to be commissioned by 2030. Strong demand, supportive policies, and a growing emphasis on infrastructure by the government are expected to boost future investments in the sector.

Construction and infrastructure industry

Infrastructure development has been an integral part of the governments plans and policies due to its importance in steering the Indian economy towards the $5 trillion mark.

Residential and commercial buildings

In 2022, the residential sector experienced strong demand in the form of decade-high sales of 215,000 homes in top seven cities. Sales increased by 68% YoY with more than 50,000 units sold in each quarter despite rising mortgage rates, property prices, and global headwinds. It further demonstrated the industrys prominence as one of Indias fastest-growing industries. Despite challenges, consumer sentiment remained positive, and the residential market has set unprecedented benchmarks.10

The year 2022 saw the highest number of new residential units launched in India in over a decade, as a total of 247,000 units entered the market. The positive momentum was driven by strong sales and favourable economic conditions, prompting developers in the top seven cities of India to launch a flurry of new residential projects. Compared to the previous year, there was a remarkable 81% year-on-year increase in the number of new launches in 2022. As of Q4 2022, unsold inventory in the seven major cities of India rose by 1.8% Q-o-Q due to new launches surpassing sales, with Mumbai, Bengaluru, and Hyderabad contributing 63% to the unsold stock, but the years to sell (YTS) declined from 3.1 years in Q3 2022 to 2.9 years in Q4 2022, reflecting strong sales growth.11

While office markets across the globe have been struggling with a slowdown in economic activity due to inflation and the threat of recession, Indias economy has remained stable and has even emerged as the fastest growing major economy in the world. This stability is reflected in the relatively steady occupier activity observed in the Indian office market, with a modest 5% YoY growth seen in the 1.05 million square metres (11.3 million square feet) of area transacted during Q1 2023. Bengaluru was the most active market during the quarter, accounting for 31% of the total area transacted with a transacted volume of 0.33 million square metres (3.5 million square feet). Meanwhile, Mumbai saw a substantial 132% YoY growth in occupier activity during Q1 2023, backed by big-ticket leases signed by flex space, BFSI, education, and e-commerce occupiers. The three largest markets - Bengaluru, Mumbai, and NCR - accounted for 73% of the area transacted and experienced positive YoY growth. Flex spaces remained popular, constituting 29% of the transacted space during Q1 2023, with Bengaluru being the most active market for flex space operators, accounting for 50% of the total space transacted by the sector. The Other Services sector companies were the most active, while Information Technology and BFSI sectors each accounted for 16% of occupier activity.

During Q1 2023, 0.46 million square metres (4.6 million square feet) of office space was completed, with the NCR accounting for 45% of the office space delivered during the quarter. The only other market that saw a significant amount of office space, 0.12 million square metres (1.3 million square feet), being made available was Bengaluru. However, the limited deliveries during the period helped keep vacancy levels across the eight markets at a healthy 16.4% compared to 17.3% a year ago as per Knight Frank Office and Residential market report.

Number of units in the top 8 cities

A positive outlook is projected for this segment in the upcoming years as it is backed by favourable government policies and good economic growth.


Post-pandemic, developers are adjusting their strategies to meet changing homebuyer preferences and product metrics, emphasising efficiency, customer-oriented projects, sustainable and green buildings, and health and well-being aspects. In addition to affordable and mid-segment homes, demand from the premium segment is also rising, with established developers launching projects in prime locations. Furthermore, there is a growing demand for larger homes with quality amenities. The real estate market has shown a slight softening due to macroeconomic headwinds, causing delayed decision-making by businesses. However, Indias office market is expected to remain robust, driven by various segments such as flex, healthcare-life sciences, GCCs, and manufacturing or industrial, along with its leadership position in the global tech ecosystem. The office demand is expected to remain similar to 2022 and around 58-60 million square feet of supply is lined up for the next 12 months. The global headwinds may stifle demand in the short term and may lengthen decision-making times by customers. Going forward, real estate planning will focus on talent mobility, healthy workplaces, and employee value proposition.12

Urban infrastructure

The government has demonstrated a strong commitment to fostering infrastructure development, particularly in urban areas, as a means to drive economic growth and employment. Evidencing this commitment, there has been a substantial increase in capital investment outlay for three consecutive years, with the current years outlay reaching H 10 lakh Crore, equivalent to an estimated 3.3% of GDP. To further incentivise investment in infrastructure and encourage complementary policy measures, the government has extended the 50-year interest-free loan to state governments, with a significantly enhanced outlay. Additionally, the establishment of an Urban Infrastructure Development Fund (UIDF) through the utilisation of priority sector lending shortfall, managed by the National Housing Bank, is expected to enable public agencies to create urban infrastructure in Tier 2 and Tier 3 cities. States are being encouraged to leverage resources from the grants of the 15th Finance Commission and existing schemes while adopting appropriate user charges to access the UIDF.


In 2022, the total number of airports in India has increased to 147 from 74 in 2014. As per Ministry of Civil Aviation, over the past 8 years, the Airport Authority of India (AAI) has invested over H 20,000 Crores in the Civil Aviation industry through capital expenditures. As per a recent report by Invest India, India is set to become the worlds third-largest aviation market by the end of FY24. The number of airports constructed within the last few years has doubled and as per the Ministry of Aviation, nearly 100 new airports are to be constructed in the upcoming five years.

Note: The above map is for illustrative purpose and it is not intended to be used for reference purpose.


Rapid urbanization in India has accelerated the requirement of the urban rail system for public transportation. In past two decades, indian cities have added more than 800 km of operational metro rail network and India now has the fifth largest metro rail network in the world. India plans to have 5,000 km of operational network by the time it celebrates its 100th year of independence.

Metro Rail has undergone significant transformations over the past few years. The Indian government has recognised the importance of public transportation and has invested heavily in this sector. This has resulted in the development of state-of-the-art metro systems with modern technologies like driverless trains, automatic fare collection systems, and advanced signalling systems. Metros have not only eased traffic congestion in cities but, have also contributed significantly to reducing air pollution. The present length of the metro rail in India is also planned to double by the end of FY25. In the Union Budget for FY24, the Indian government has designated a total of H19,518 Crores for all metro projects across the country.13 Most of the metro rail systems in India are being operated and maintained by public sector entities called metro rail corporations. Traditionally, the O&M (operation & maintenance) of metro rail systems is carried out by metro rail corporations in house and only certain activities limited to facility management and allied services are outsourced to private sector. However, with increasingly these corporations are outsourcing a significant part of O&M activities to private sector with many of them already in the process of outsourcing some of their core O&M functions to them. Opportunities for private sector will continue to grow for shorter length metro rail projects such as those in Tier II cities.

Roads and national highways

India has the second-largest road network in the world, spanning a total of 6.3 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of Indias total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with improvement in connectivity between cities, towns and villages in the country.

Highway construction in India increased at 17.00% CAGR between FY16-FY21. Despite pandemic and lockdown, India has constructed 10,457 km of highways in FY22. Under the Union Budget 2023-24, the Government of India has allocated H 2.7 lakh Crore (US$ 33 billion) to the Ministry of Road Transport and Highways. In FY23 (until December), the Ministry of Road Transport and Highways constructed national highways extending 6,318 kms.

The Government of India has allocated H 111 lakh Crore (US$ 1.4 trillion) under the National Infrastructure Pipeline for FY 2019-25. The roads sector is likely to account for 18% capital expenditure over FY 2019-25.

The National Highways have a total length of 1,44,955 km, which in totality serve as the arterial network of the country. The road network in India is approximately 63.32 lakh km, making it the second-largest road network in the world As per the Ministry of Road Transport and Highways (MoRTH), the ministry has constructed 5,774 km of National Highways up to December As at 31st March, 2022-23. The allocation for the Ministry of Road Transport and Highways in the union budget has increased by 36% with around H2.7 lakh Crore for FY24. It is expected to support the increased road project execution target of 14,500 kilometres against 12,000 km in FY23. Various projects under the initiative of connecting the last mile are expected to increase the lengths of roads and national highways. 14

Bharatmala Pariyojna

The Ministry of Road Transport and Highways, Government of India has initiated 55 port connectivity projects to improve last-mile connectivity to all major and non-major ports in the country. Out of these, 8 projects have been completed, 14 are being implemented, 13 are under the bidding process and 20 are yet to be awarded. Upon completion, 45 maritime ports will have National Highways or 4 Lane+ connectivity.

Capex: Driver of growth & jobs


The Government has made infrastructure development a top priority, and it is expected to play a key role in achieving its goal of building a $5 trillion economy by 2025. According to the latest report by the Department of Economic Affairs (DEA), in order to achieve its $5 trillion GDP plan by 2025 and to maintain its rapid growth, the Government needs to invest $4.5 trillion in infrastructure development through 2030. According to the Ministry of Road Transport and Highways, India is building roads at a record rate and the countrys national highway network will expand by 37% in the next two years.

ThepositiveprospectsoftheIndianinfrastructureandconstruction sector in the coming decade are due to the governments initiatives and future projects such as the National Infrastructure Pipeline (NIP) and Smart Cities Mission are expected to create a significant market for construction equipment manufacturers and developers. Additionally, the growing demand for environmentally friendly materials and sustainable technologies, coupled with a focus on creating sustainable structures such as the Energy Conservation Building Code (ECBC) and Leadership in Energy and Environmental Design (LEED) certifications, is likely to be a key driver of growth in this sector.

The Indian Railways is making rapid progress towards achieving its goal of 100% electrification and becoming the largest green railway network in the world. According to Ministry of Railways during FY23, the railways achieved electrification of 6,542 route kilometres (RKMs), which is the highest in the history of the Indian Railways. As per Ministry of Railways, Haryana, Odisha and other railway divisions have achieved 100% electrification of their existing Broad-Gauge Rail Networks. The Broad-Gauge network in Haryana spans 1,701 route kilometres and has benefitted from reduced line haul costs, increased hauling and sectional capacities, reduced operating and maintenance costs of electric locomotives, and a more energy-efficient and eco-friendly mode of transportation as per Ministry of Railways. With its impressive progress, the Indian Railways is well on track to achieve its vision of being a sustainable and eco-friendly transportation system.

Indian Railways is developing and creating technology in areas such as signaling and telecommunication with 15,000 kms being converted into automatic signaling and 37,000 kms to be fitted with ‘KAVACH, the domestically developed Train Collision Avoidance System

Government Budget for Railways FY23-24

In the Union Budget 2023-24, the Ministry of Railways received an allocation of H 2.41 trillion.

Of the total allocation in 2023-24, H 376 billion has been allocated to rolling stock and H 42 billion to signalling and tele communication.

On the infrastructure expansion front, H 318 billion has been allocated to new lines, H 46 billion to gauge conversion, H 307 billion to doubling works, H 173 billion to track renewals, and H 13 billion to bridges, tunnel works and approaches. Moreover, the government has proposed the manufacturing of 35 hydrogen fuel-based trains, 4,500 newly designed automobile carrier coaches with side entry, 5,000 Linke Hofmann Busch (LHB) coaches and 58,000 wagons. It is expected that hydrogen trains will entail an investment of H 800 million per train and ground infrastructure of H 700 million per route on various heritage/hill routes

15+ Vande Bharat Express operational 400 Trains in the next 3 years

The Vande Bharat Express is an indigenously built semi-high-speed train under the make-in-India initiative. It is also allowing the country to move ahead towards its self-reliance policy. This has reduced the journey time by 25% to 50% on the routes where it is currently operational. As per Ministry of Railways, the Government of India is also developing the Vande Bharat Express 2.0 with further enhancement. The government is expected to operate 35 Vande Bharat Express by 15 August 2023

Regional Rapid Transit System (RRTS)

According to NCRTC , Regional Rapid Transit System (RRTS) is a high-speed rail-based mass transit system that connects multiple cities or regions within a country. It is designed to provide fast, safe, reliable, and comfortable commuting options for people travelling between different regions. The National Capital Region Transport Corporation (NCRTC) will receive H 3,596 Crore for the countrys first Regional Rapid Transit System (RRTS) project.

Signalling and Telecommunication

The Indian Railways has implemented Automatic Block Signalling (ABS) as a cost-effective solution to increase line capacity on high density routes. During FY23, the railways upgraded 530 kilometres with automatic signalling, which is a 143.12% increase from the previous years figure of 218 kilometres as per Ministry of Railways. This achievement marks the highest number of automatic signalling upgrades in the history of the Indian Railways. The Ministry of Railways has recently allowed private players to install towers on land owned by the Indian Railways and extend their telecommunication services.

During the year the Indian Railway has undertaken the following initiatives Centre of Excellence for Modern Signalling: The government has established the ‘Centre of Excellence for modern signalling at Secunderabad. It is aimed at providing expertise and technical inputs through competence building, research, design, and standardisation. Standard typical circuits for Electronic Interlocking Version 2.0 has been issued for use in all future installations up to 100 routes to improve efficiency in signal design and circuit approvals.

Intermediate Block Signalling: The provision of Intermediate Block Signalling (IBS) has been useful in enhancing line capacity without extra recurring revenue expenditure. It has been provided in more than 67 block sections in FY23, totalling over 700 block sections.

Signal Design Automation Tool for Electronic Interlocking (SigDATE): The introduction of SigDATE, an automatic Route Control Chart generating system, is expected to expedite infrastructural works and improve efficiency in signal design.


The allocation of H 2.40 lakh Crore in the budget for the Indian Railways is significant not only because it is the largest-ever, but also due to its implications for enhancing connectivity, facilitating the mobility of people and goods, generating employment, fostering development, and promoting the transition to a net-zero economy. Indian Railways has prepared a National Rail Plan (NRP) to create a ‘future-ready railway system by 2030. The National Rail Plans target of increasing the share of freight traffic by rail, from 27% to 45%, by 2030 is being pursued through the construction of Dedicated Freight Corridors (DFCs) and various strategies implemented by Indian Railways. Additionally, policies like the Gati Shakti Multi-Modal Cargo Terminal and schemes like the Automobile Freight Train Operator are attracting private investment in developing cargo terminals and special wagons. These measures will make rail transportation more competitive and increase the market share of railways in the freight segment.

Water infrastructure

Water Vision 2047

According to the latest updates from the Central Pollution Control Board, the country treats less than 50 % of the waste water generated. Bridging the gap between recycling and reusing treated wastewater, as well as adopting new technologies is the need of the hour.

According to Ministry of State for Jal Shakti, by 2047, with comprehensive water management practices and new technologies, India could ensure access to water from an improved source, free of contamination and available when needed, to all households across India. Meanwhile, to improve water re-use rates and reduce aquifer pollution, it could aim to increase the share of wastewater treated from 25–30 percent currently to 90–100 percent which is in line with global best practice.

India could also reduce its non-revenue water rate, including water leaks and unbilled water, from about 30–35 % in 2021 to around 10–15 % by 2047, in line with Asias highly efficient water systems.

According to India Infrastructure Research, over 700 mld of industrial desalination capacity is expected to come up. Of this, around 370 mld is expected to be added in Gujarat, followed by Andhra Pradesh (194 mld), Tamil Nadu (102 mld), Karnataka (30 mld), Odisha (20 mld) and Maharashtra (10 mld). For desalination plant, around H 50 billion worth of investment is anticipated to be required. In terms of technology, RO-based plants of over 17 mld SWRO-based plants of 10 mld and other technology-based plants (such as membrane technology and hybrid technology) of around 10 mld are anticipated to be set up

About Jal Jeevan Mission

The Jal Jeevan Mission (JJM) is being implemented under the State Water and Sanitation Mission, which is already functional, and different sources, including rainwater harvesting, have been tapped. It was announced in August 2019. JJM envisages supply of 55 litres of water per person per day to every rural household through Functional Household Tap Connections (FHTC) by 2024. It is under the Ministry of Jal Shakti.

Over 58 Crore

People now have access to clean drinking water through taps at home

Government Initiatives

Jal Jeevan Mission

The Jal Jeevan Mission aims to provide safe drinking water to all rural households in India by 2024, with a focus on individual household tap connections and source sustainability measures such as greywater management, water conservation, and rainwater harvesting. The mission will prioritise community involvement and education through Information, Education, and Communication (IEC) initiatives to promote a collective commitment to water management.

Namami Gange Programme

The Namami Gange Programme, the flagship scheme of the central government, is at an inflection point where all the groundwork that has been done in the past few years has now accelerated the governments efforts. There has been measurable progress in terms of reduction in pollution in the river Ganga and its rejuvenation The larger vision of government is now to improve the overall ecosystem of the Ganga basin. In terms of the number of projects and sewage treatment capacity, the Ministry of Jal Shakti plans to commission a significantly larger proportion of the work and this trend is expected to continue

Atal Mission for rejuvenation and urban transformation

Phase 2 of AMRUT aims to provide tap water connections and universal coverage of seepage services to households, among other services, with the support of central funding. This will be achieved through sustainable ways like recharge and re use of waste water, rain water harvesting and water conservation

Interlinking of Rivers

The mission of this programme is to ensure greater equity in the distribution of water by enhancing the availability of water in drought prone and rain-fed area. Under National Perspective Plan, 30 nos of links have been identified covering 14 links under Himalayan Rivers Component and 16 links under Peninsular Rivers Component for inter basin transfer of water based on field surveys and investigation and detailed studies

Oil and gas

The oil and gas sector in India is one of the most significant businesses in the nation, accounting for approximately 30% of the countrys entire energy mix and serving as a vital economic engine. Technology has long been an important component of the oil and gas business. The length of Indias gas pipeline infrastructure increased to 22,000 km in FY23.

The demand for oil will continue to rise in the coming years, largely driven by the recovery of the global economy and the reopening of various industries that have been impacted by Covid-related restrictions.15

IEA projected Indias oil demand to rise from 4.7 million barrels per day (bpd) in 2021 to 6.7 million bpd by 2030 and 7.4 million bpd by 2040 Consumption of natural gas in India is expected to grow by 25 billion cubic metres (BCM), registering an average annual growth of 9% until 2024. Natural gas, 50-60% less polluting than coal, will work as the transition fuel that can get India to its ambitious goal of net-zero emissions by 2070, when the nation aspires to be fully powered by renewable energy. By February 2026, India will invest H3 lakh Crore, or $40 billion, to expand gas infrastructure — pipelines, port-based LNG (liquefied natural gas) regasification terminals, city gas distribution (CGD) networks and gas exploration projects.

Central governments Petroleum Planning & Analysis Cell says demand for gas is set to more than double to 380 million metric standard cubic metres per day (mmscmd) by FY30. Industry is expected to account for 40% of this growth.

Notable trends in the oil and gas sector

Coal Bed Methane (CBM) : CBM policy was designed to be liberal and investor-friendly. The first commercial production of CBM was initiated in July 2007 at about 72,000 cubic metres per day. Production in July 2022 stood at 58.78 MMSCM. Gas hydrates and bio-fuels: The Government initiated the National Gas Hydrate Programme (NGHP), a consortium of national E & P companies and research institutions, to map gas hydrates for use as an alternate source of energy.

Bio-fuels (bio-ethanol and bio-diesel) are alternate sources of energy from domestic renewable resources. These have lower emissions compared to petroleum or diesel.

Growth Drivers Rising Demand

• Energy demand of India is anticipated to grow faster than the energy demand of all major economies on the back of robust economic growth.

• Consequently, Indias energy demand as a percentage of global energy demand is expected to rise to 11% in 2040 from 6% in 2017.

• Crude oil consumption is expected to grow at a CAGR of 5.14% to 500 million tonnes by FY40 from 202.7 million tonnes in FY22.

• Natural Gas consumption is forecast to increase at a CAGR of 12.2% to 550 MCMPD by 2030 from 174 MCMPD in 2021.

• Diesel demand in India is expected to double to 163 million tonnes by 2029-30.

• Indias oil consumption is forecast to rise from 4.05 MBPD in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050.

Source: BP Statistical Review of World Energy 2019, BP Energy Outlook 2019 and IBEF

*MCMPD - Million Cubic Metres Per Day

FDI investments in petroleum and gas in India

• FDI inflows in Indias petroleum and natural gas sector stood at US$ 7.99 billion between April 2000-June 2022

• India has invited global firms to invest in its strategic petroleum reserves (SPRs) owing to the countrys rising energy consumption. Indias share in global energy consumption is set to rise from 7% to 12% in 2050.


According to the International Energy Agency (IEA), global oil demand is expected to increase by 1.9 million barrels per day (mb/d) in 2023, reaching a new record of 101.7 mb/d. This increase in demand is largely driven by China, which is expected to contribute nearly half of the overall increase after lifting its Covid-related restrictions. The primary source of this growth in demand is jet fuel, which is expected to increase by 840 kb/d. To combat rising oil costs, the Indian government plans to commercialise 50% of its strategic petroleum reserves (SPR) in order to earn revenue and build more storage tanks. In the next five to six years, the length of Indias gas pipeline system is predicted to rise to 35,000 km.16 By February 2026, India will invest H3 lakh Crore, or $40 billion, to expand gas infrastructure — pipelines, port-based LNG (liquefied natural gas) regasification terminals, city gas distribution (CGD) networks and gas exploration projects to meet net-zero emission goal by 2070

Company overview


Global Footprint

Founded in 1981, Kalpataru Power Transmission Limited (KPTL) is one of the leading Engineering, Procurement and Construction (EPC) companies. The Company offers comprehensive solutions encompassing design, testing, fabrication, erection and construction of transmission lines, power substations, oil and gas infrastructure, railway projects, civil contracting services for Buildings & Factories, Airports, Water Infrastructure, Highways and Metro construction on a turnkey basis and solar EPC projects. The

Company is also present in the agri commodity warehousing sector through its subsidiary Shree Shubham Logistics Limited. The Company has extended its local reach in the European market through its strategic acquisition of Linjemontage Grastorp AB in Sweden in 2019 and Latin America through the acquisition of Fasttel Engenharia SA in Brazil in 2021.

Financial highlights

Standalone & Consolidated Key figures:

(H Crores)

Standalone Consolidated


FYAs at 31st March, 2021-22 FYAs at 31st March, 2022-23 % Change FYAs at 31st March, 2021-22 FYAs at 31st March, 2022-23 % Change
Revenue 12,407 14,337 15.6% 14,777 16,361 10.7%
Core EBITDA* 1,080 1,278 18.4% 1264 1,481 17.1%
Core EBITDA Margin(%)* 8.7% 8.9% 8.6% 9.1%
PAT 350 532 51.8% 535 435 -18.7%
PAT Margin(%) 2.8% 3.7% 3.6% 2.7%

*Core EBITDA includes the amount of H109 Crores shown as an exceptional item with respect of an award obtained by an erstwhile power transmission subsidiary and is contractually receivable by the Company.

The Key Financial Ratios are given below

In accordance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2018, the Company is required to provide details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations



Financial Ratios

FYAs at 31st March, 2022-23 FYAs at 31st March, 2021-22 FYAs at 31st March, 2022-23 FYAs at 31st March, 2021-22
Debtors Turnover (No. of Days) 120 135 114 123
Inventory Turnover (No. of Days) 57 56 61 61
Interest Service Coverage Ratio 3.8 3.5 2.8 3.2
Current Ratio 1.3 1.5 1.3 1.4
Debt Equity Ratio 0.6 0.5 0.8 0.9
Operating Profit Margin (%) 8.1 6.9 8.4 7.9
Net Profit Margin (%) 3.7 2.8 2.7 3.6

At standalone level increase in Net Profit Ratio has been on account of better margin in projects. At consolidated level, decrease in Net Profit is mainly due to increased input costs in subsidiary companies.

Strong all-round performance in FY As at 31st March, 2022-23

In FYAs at 31st March, 2022-23, the company witnessed a standalone revenue growth of 16% driven by strong execution and a healthy order book position. Productivity improvement and project closures contributed to improved profitability. There was strong traction in the international business as the company expanded its Transmission & Distribution (T&D), Civil, and Oil & Gas businesses and forayed into new geographies. Notably, it recorded the highest-ever annual order inflow of over H25,000 Crores, resulting in an all-time high order book. The companys capital expenditure (CAPEX) was around H500 Crores during FY As at 31st March, 2022-23. Furthermore, the scheme of amalgamation of JMC Projects (India) Limited with KPTL was successfully completed in January 2023, leading to the creation of one of Indias large listed diversified engineering and construction company with a global presence and well diversified business mix with order book of about H 46,000 Crores.

Operational highlights

Manufacturing updates

During FYAs at 31st March, 2022-23, production (including outsourced) and dispatches of transmission line towers/structures were 122,594 MT and 118,258 MT respectively, as compared 148,253 MT and 152,580 MT in As at 31st March, 2021-22.

Order book

For the FYAs at 31st March, 2022-23, on a consolidated basis, the company has received new orders of approximately H 25,241 Crores. The aggregate value of orders on hand is H 45,918 Crores.

Geographical updates

Geographically, the consolidated revenue of the company can be divided into two different segments – domestic and international. Revenue from the domestic business was H 10,917 Crores (67%) and the international business recorded revenue of H5,444 Crores (33%) in As at 31st March, 2022-23 on consolidated level. During the FYAs at 31st March, 2022-23, the company expanded its presence by entering three new countries—Seychelles, Madagascar, and Ghana—bringing the global footprints to a total of 70 countries.

Business - Wise Performance

Consolidated Business Revenue

(H Crores)


FY22 FY23 Growth
T&D 6,446 6,038 -6%
B&F 3,313 4,136 25%
Water 1,704 2,622 54%
Oil & Gas 915 985 8%
Railways 1,589 1,652 4%
Urban Infra 328 403 23%

Total Core business

14,295 15,836 11%
Others & Inter-company 482 525 9%
Total Consolidated Revenue 14,777 16,361 11%

Power Transmission and Distribution (T&D)

T&D has been the flagship business of the Company and with the present scenario of global transition towards clean energy, the company has significant opportunity to design and deliver grid infrastructure upgrades that can integrate renewable energy sources. During FY23 the Company has secured numerous orders of transmission line and substation in international and domestic markets totalling approx. H 10,000 Crores (incl. subsidiaries). The T&D business order book including the international subsidiaries is at a record high of around H16,500 Crores. In FYAs at 31st March, 2022-23, the company completed 663 circuit km of stringing of transmission towers at various locations internationally and domestically completed 1,746 circuit km of stringing. T&D business revenues was at H 6,038 Crores in FYAs at 31st March, 2022-23, lower by 6% on account of lower revenue booking in the international subsidiaries. During the year, Company has strengthened its position in existing and new geographies by securing various high-value projects. The Company has also been selected as a preferred EPC partner by a major utility in Australia for executing a large-size EPC project for renewable integration. This is a significant achievement for KPTL which demonstrates the capability to manage and execute such large-size complex projects at the global level. In India, the Company secured orders from Power Grid Corporation Limited (PGCIL), State Electricity Boards (SEBs) and private clients Looking ahead, the Company has a huge tender pipeline of over H 50,000 Crores for next 20-24 months in India. In the International market, company has strong visibility with a tender pipeline of over USD 4 billion concentrated in markets of Africa, Latin America, Asia and Middle East.

Buildings & Factories

B&F business of the company is into residential and commercial construction services and has established a significant presence in southern India. The Company has maintained its leading market position with repeat orders from large existing clients and added new institutional clients. For the year FYAs at 31st March, 2022-23, the company has delivered remarkable growth of 25% YoY, reaching H 4,136 Crores on account of strong execution and a robust order book. The company has secured orders of H 3,755 Crores in FYAs at 31st March, 2022-23 and has an orderbook of

~H 8,500 Crores as of As at 31st March, 2023. In line with the strategy to broaden the civil business to international markets, the Company has successfully secured its second B&F project in an overseas market in Africa this year.

The Company is continuously enhancing its market position by acquiring new clients and expanding its presence in key sectors such as data centers, institutional buildings, and industrial processing plants.


Water business of the company encompasses the entire value chain of the water sector including water intake, treatment, storage, supply, distribution, operation, and maintenance. Other services includes irrigation and river linking to cater to water management needs. In FYAs at 31st March, 2022-23, the companys water business revenue grew by 54% year-on-year at H 2,622 Crores on the back strong order growth and execution. The Company has successfully obtained orders worth ~ H 7,500 Crores and currently has an order book of ~ H 12,500 Crores as of As at 31st March, 2023. Large order wins are from Madhya Pradesh, Uttar Pradesh, Odisha and Jharkhand. To enhance its competitiveness and effectively handle larger projects, the company is consistently investing in strengthening its capabilities. The Company is executing projects in six states across India. The prospects of water division remained vibrant given 27% increased allocation totalling to ~ H70,000 Crores in the Union Budget 2023 towards the Jal Jeevan Mission (JJM).

Oil & Gas

The Company is one of well-established player in oil & gas pipeline business in India covering cross country oil & gas pipelines, processing facilities, refineries and fertilizer plants. The Oil & Gas business recorded a revenue of H 985 Crores and secured overs of H726 Crores in FYAs at 31st March, 2022-23. The order book as of As at 31st March, 2023 stood at H 1,666 Crores. The Company has obtained qualifications to participate in bidding processes in seven countries, which indicates the ability of company to expand in the international markets. The business has a positive outlook in both the domestic and international markets. Strong market opportunity with estimated investment of US$150bn over the next 5 years by international companies.


One of the leading EPC contractor in railways infrastructure space and cater to turnkey solutions for conventional rail line, high speed rail and metro rail. The Railways business witnessed a 4% YoY growth, with revenue reaching H1,652 Crores. In FYAs at 31st March, 2022-23, company successfully secured orders worth H1,557 Crores, including two significant metro electrification projects. The business has an order book of H 3,747 Crores as of As at 31st March, 2023. The company maintains a cautious approach and is selective in choosing bids given intense competition. Railways segment in collaboration with B&F division have ventured into area of station development during the year FYAs at 31st March, 2022-23. The company is actively focusing on enhancing presence in key areas such as metro electrification, signalling and telecommunications (S&T), Regional Rapid Transit System (RRTS), and High-Speed Rail. In addition to the domestic business, the company is exploring opportunities in the International markets.

Urban Infra

In the urban infra business, company offers EPC services for design and construction of highways, bridges & flyovers, metro rail corridors stations, transit terminals & hubs. The urban infrastructure business witnessed a 23% year-on-year growth, amounting to H 403 Crores, primarily due to the successful execution of newly secured projects in FYAs at 31st March, 2022-23. The company secured orders worth of H 1,471 Crores and has an order book of H3,002 Crores as of As at 31st March, 2023. The Company has also successfully commenced the execution of the Maldives integrated airport development project in FY23. The company also forayed into new geographies of Ghana and Maldives. The Company is actively enhancing its capabilities to secure projects in various sectors, including metro rail, elevated roads, public spaces, and airports.

Environment, health and safety

The company has established a company-wide practice of reinforcing and maintaining the highest level of EHS standards with a dedicated approach and strong demonstrative commitment. The Company is committed to promote a safe working environment by incorporating the international EHS practices into its business operations with proactive EHS monitoring for the prevention of OSH injuries & illness to protect its employees, contractors, visitors and others in and around the projects. The Company has set the benchmark of its EOHS performance through adopting the best practices with commitment to comply with the applicable statutory obligations and law of the land.

The Company has been consistently encouraging its employees to practice & integrate EHS in all levels of employees in the organization and motivate them to adopt it in to their business operations with aim to achieve the organizational goal of ‘ZERO harm by successful implementation and adherence of well-defined safe work procedures.

During FY23, the Company inculcated safety drives and delegated safety ownership to line management, employees and contractors for prevention and mitigation of incidents, with a focused approach on the following areas:

Process driven approach

KPTL follows a process-driven approach to maintain the highest EHS standards across its sites. It has established various guidelines and procedures, including daily safety reporting, an excellent corporate EHS operational control procedure for incident reporting & investigation guideline to identify and effectively control the root causes of incidents. It also uses an EHS dashboard to monitor performance at the site level, EHS enforcement i.e. work stoppage guidelines whenever essential andidentifiesmostsafetyconsciousemployeesforSafetyrewards and recognition, regularly. Additionally, KPTL empowered all BU and Site EHS heads with duties and responsibilities applicable to their projects. Company has developed and implemented visitor safety guidelines, disciplinary policy to maintain & sustain the work place discipline, increase the productivity and promote a positive EHS culture in the organization.

Robust EHS Review Mechanism

The Company has established strong EHS review mechanism at site, BU and corporate level. The Company conducts a quantitative rapid EHS performance assessment of the Project site for monitoring and measuring EHS performance. EHS

Audits are conducted at three levels ie site, BU and Corporate to analyse the common challenges and deviations. Depending upon the findings, requires resources and supports are ensured to sites to enhance their EHS implementation program and raise the EHS standards within target dates.

It has formulated an EHS steering committee at BU / RO / Site level to enable a robust and effective EHS review mechanism. The committee fortnightly reviews with BU / RO EHS head the status of initiatives / ongoing EHS performance.

Engineering control mechanism

Innovative fall protection mechanism through vertical and horizontal lifelines, fall arrest System.

• Effective control on injury and fall protection through provision of guarding and railing mechanism in work equipment and elevated work zones.

• Provision and use of fall arresting safety nets as passive fall control measures during the erection of transmission tower

• Provision of CCTV Camera System at tower location to monitor safe work practices.

TPI of lifting tools and tackles at the site

Trench box installation to protect people while working in and around the trenches.

• Implementation of Snake Guard Stick for project sites.

Helmet Mounted Induction Tester and voltage detector during work near live lines.

EHS training tools

All applicable EHS trainings are scheduled and conducted at EHS training/induction centre as per training calendars. Required resources including experienced trainers, training modules, audio presentations/ safety video, toolbox talks, meetings are provided for effective EHS trainings for employees, contractors and visitors.

EHS LMS module on different topics to ensure effective delivery, tracking and assessment of learning modules. Virtual reality modules on different topics are developed to help learners gain hands-on experience. EHS Induction movie with live working practices are shown to learn the safety practices, effectively. Besides, CCTV cameras are installed to track the adherence of safe work practices in real-time. Weekly EHS Webinar sessions are also held for all employees.

Human resource

KPTL recognises its employees as the driving force behind its success. Its HR department is dedicated to provide its people the tools, resources, and support necessary for thriving in a competitive environment. Through various initiatives, it fosters a culture of continuous learning and development and promotes diversity and inclusion. Its efforts to attract, retain, and develop top talent have enabled the Company to build a strong talent pipeline that fuels growth and success.

Learning and development

The Company has made it a priority to cultivate a work environment that values continuous learning and personal growth. It recognises the importance of investing in the development of its human resources and has therefore taken steps to enhance the frequency and quality of learning and development initiatives available to them. To achieve this objective, the Company has developed a comprehensive Learning and Organisational Development (L&OD) framework that focuses on four key strategic areas. These areas are:

Professional development opportunities

The Company prioritises employee development by providing functional and technical skill-based programmes. It believes in the professional growth of its employees and ensures it through external skill and competency development programmes. Its approach includes on-the-job skill development, certification programmes, and a monsoon training drive to encourage curiosity and self-development.

Interventional development opportunities

The Company offers various programmes to enhance specific competencies and skills across all levels. It includes self-paced learning modules, certification courses, and on-the-job skills development. Subject matter experts provide training on people development, strategic thinking, project management, and lean management. It also focuses on evaluation of employee skills to ensure learning retention. Additionally, high-potential individuals are offered project management certification through SP Jain Global School to further strengthen the Companys talent pool.

Transformational development opportunities

To build a strong talent pipeline, the Company facilitates the Talent Development and Review Council. This council enables leadership to engage in conversations with employees about their aspirations, potential, and career paths. Employees are encouraged to reflect on their approach, goals, and leadership style, and build development plans accordingly.

Aspirational development opportunities

Long term leadership development opportunities for early leaders (ELEVATE), future leaders (LEAP) and leadership role holders (LDP-IIM) with a focus on building long term impactful competencies and leadership capabilities along with Action Learning to derive practicable outcomes of learning and group mentoring /coaching. Executive coaching opportunities are available to senior leaders to help them grow in business and functional leadership roles.

Training Sessions for Employees & workers

The company facilitates mandatory training like Anti Bribery Anti Corruption(ABAC), PoSH, KCoC, HR Policy related training, Behavioural Competency Framework and Organizational Values etc. through the in person and virtual modes through the following programs for employees and on roll workers:

Swagat Orientation and Induction Program: The program is held virtually once in every two months through which the Company ensures that all the newly joined employees gain insight into corporate policies, gain an understanding of all the businesses and interact with senior HR Leadership.

Virtual Sessions on Policies: For a greater understand and clarity on organizational policies like HR Policies, KCoC, PoSH, Behavioural Competency Framework and ABAC, virtual programs are facilitated to reach a wider audience locally and at international locations. Mandatory policies are also available to employees in the form of LMS Courses with yearly recertification for ABAC and one in two years certification for KCoC and POSH. Monsoon Training Drive: Taking advantage of the monsoon season, the Monsoon Training Drive is facilitated by the L&OD team, business HR teams, Quality and EHS Teams. Training on organization policies and guidelines are facilitated by the SMEs. Programs are facilitated at project sites to ensure that a larger audience is reached in person.

Rewards & Recognition

The Company understands that our talent is at the core of our organizations growth and success. The company as one integrated Kalpataru Parivar are committed to value and recognize its hard work and dedication through multiple rewards and recognition initiatives. One such way the company continuously live this value of employee recognition is by sending congratulatory letters to not only the employees but also the family members of those employees who have been promoted, displaying our ideology of Kalpataru -Parivar, to express their remarkable support, contribution, and continuous trust in the company.

The Company also recognizes its loyal employees through long service awards for their continuous commitment to the company. In addition, the company has also recognized employees through "Exceeding Everest" awards, which acknowledges employees who have made significant contributions to the various cost, systems, or process improvement initiatives. The Company ensures a human centered employee focused approach for such recognitions through an R&R week where these, and many other awards are presented to their employees by their respective leaders. The Company firmly believes that these initiatives are essential in creating a positive and supportive work environment, and it will continue to prioritize these for its high performing and loyal talent in the years to come.

Overall with an objective of recognition does not stop, this year 15% of employees have been recognized throughout the year.

Diversity and inclusion

The Gender Diversity percentage increased from 3.25% to 4% this year. Significant efforts were made to increase diversity by recruiting women in key positions and empowering them to reach their full potential. Women were groomed for future roles and given cross-functional exposure to reap the benefits of gender diversity.

Corporate social responsibility (CSR)

KPTL is committed to becoming a socially responsible corporate citizen and to make a positive difference in the lives of communities and society as a whole. To do this, it has established structured approach towards implementing need-based social interventions through its CSR activities.

Kalpataru Foundation and Kalpataru Welfare Trust (CSR implementing organisations of KPTL)

The Companys CSR activities are not limited to developing the communities around its plant locations, but also extend to various sites in remote locations across the country, leaving positive social footprints behind. Its focus areas for CSR include healthcare, education, skilling/livelihood, disaster relief, and animal welfare, environment and need-based rural interventions across various geographies.

Healthcare Initiative

Kalpa Arogya Seva (Project KARE) and Swasthya Abhiyan

Healthcare interventions under the project focuses on providing preventive, promotive and curative healthcare services. The subsidised dispensary, Kalpa Seva Aarogya Kendra (KSAK) continued to provide specialised health services while expanding the outreach to villages near Gandhinagar, Gujarat and Raipur, Chhattisgarh. This centre provided subsidised MRI scan facilities to 8,615 patients in FY22-23, the maximum number of scans in a month reaching a high of 903 scans. These beneficiaries were provided consultations, medicines and other pathology tests at subsidised rate. Both the centres are complementing the government run health facilities in the area.

36,019 Beneficiaries from marginalised and vulnerable communities

KPTL supported the Rashtriya Netra Yagna project of Vision Foundation of India towards their mission of reducing avoidable blindness. The loss of sight most often results in social exclusion, making visually challenged persons vulnerable to abuse and destitution. The quality of eye care and medical technology available today is not reaching the needy communities in remote locations of the country. KPTL identified these remote locations near the Project sites and supported cataract surgeries for people from the marginalised background.


Persons underwent cataract surgeries

KPTL continued to expand its outreach towards creating awareness through training of stakeholders like caregivers and running healthy aging program on Parkinsons disease. The project is being run in partnership with Parkinson Disease and Movement Disorder Society, a Mumbai based NGO. Understanding the dearth of intervention and awareness on Parkinson disease near the villages of our Raipur Plant, KPTL extended the project outreach to these rural areas. The interventions focused on creating awareness and conducting sessions on healthy aging across Thane district in Maharashtra and Raipur district in Chhattisgarh. 125 Organisations, 2669 beneficiaries from marginalised communities and 132 senior citizens benefitted from this project.


Beneficiaries & elderly benefitted through outreach programme

The community health care interventions also focused on providing initial support for diagnosis for cancer in 30 paediatric cases, individual medical support to needy beneficiaries, donating wheelchairs to PwDs who belong to low income strata of society. KPTL also focused on augmenting healthcare facilities for the marginalised communities around our Plant locations and project sites. Support was provided to set up X-Ray facility, Sonography machine and other medical equipment, etc. were donated to charitable hospitals and government run health centres. A Community Sub-health centre was constructed in a village in rural Maharashtra. This centre will work as a spoke reaching out to villages in 8-10km radius. Water, Sanitation & Hygiene (WaSH) is a pre-requisite to human health and well-being. Understanding this crucial problem, KPTL undertook construction of public toilets in areas that witnessed high footfall. This will ensure usage of the toilet facility and promote healthy practices like hand wash, etc. As a part of menstrual health management project, sanitary napkin making machines has been set up in a school and rural community. This project will work towards providing sanitary napkins to young girls and women in rural area and small towns.


Beneficiaries covered under Healthcare

Education Initiative

Kalpa Vidhya Kalpa Kaushal, Shiksha Abhiyan and Unnati Abhiyan

In a developing nation like India, quality education is an essential need for every child. With over 250 million school-going children, education has become a top priority for both individuals and the government. The National Education Policy 2020 (NEP 2020) was introduced to ensure equitable access to education for all children, especially those from marginalised communities.

Aligned with the NEP, KPTLs CSR activities are focused on creating safe and holistic educational infrastructure for children in remote areas. The goal is to provide an impetus for them to join and sustain their schooling years. To ensure that children from the marginalised communities have equal access to education, KPTL supported the refurbishment and construction of the Government Senior Secondary High school in Rajasthan.

The work began in FY21 and was completed in FY23. Additional classrooms, sanitation facilities, Mid-day meal shades, separate dishwashing and handwash stations, kitchen renovation, Anganwadi, were constructed and computer Lab, Mini Science Centre, Digital Smart classrooms were set up. As a result, enrolment in these schools has gone up from 450 students to 750 students.

With a focus on providing 21st-century skills and breaking the digital divide in schools, KPTL initiated the setting up of Digital Smart Classrooms and Mini Science centres across schools in semi-urban and rural areas of India. Through "Digital Smart Classrooms," students are taught interactively, benefiting schools with skewed teacher-student ratios the most. The setup of Mini Science centers across 12 schools has helped inculcate basic concepts of Science & Technology (Science, Technology, Engineering & Mathematics) at a very early age among the children in these schools. Consequently, we will see a strong inclination of students opting for Science & Technology as a further study. The adoption of these projects by schools is helping transform the traditional ‘rote based educations system and moving towards more interactive, innovative ways of learning amongst children as well as focusing on interactive pedagogy of teaching. Various schools benefitted through interventions like construction of sanitation facilities, donation of water purifiers, donation of school bus, installation of solar panels, providing computer and refurbishing of classrooms, etc. across locations. This included schools of children with special needs.

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Digital Smart Classrooms Mini Science Centres


Students & teachers benefited from Education interventions

This year, KPTL also supported the Har Ghar Tiranga Campaign run by Govt of India near our office and Plant locations. More than 40000 flags were distributed to individuals in the community.


Indian national flag distributed

The skilling project is aligned with the Skill India Mission of the Government of India and focuses on providing employability linked, industry-specific training in trades like Fitter, Rigger, Welder, Electrician, Plumbing, etc. More than 420 youth from economically backward background benefitted through various training interventions including National Apprenticeship Promotion Scheme (NAPS).


Youth trained in employability linked skills

As a part of enhancing the infrastructure in the skill training ecosystem, efforts have been made by KPTL to set up innovative Simulation-based Welding Lab in 2 Government run Industrial Training Institute (ITI), benefitting 90 students directly. The extended Reality (XR) based training will help students learn

137 the nuance of welding like positioning, distance, etc. which will be evaluated on a real time basis. The students can practice as much as possible before moving to actual site, thereby ensuring lees usage of consumables and lesser fumes during the process. Nearby ITI are being encouraged to send their students to utilise the facility so that youth can reap maximum benefit.


Youth across two Govt. run ITI will benefit

Animal Welfare and Environment

SAVe Our Environment Save OUR Animals (“SAVIOUR”) and Paryavaran Abhiyan

The Company supported initiatives in the area of animal welfare by partnering with NGOs working towards construction of shelter, animal hospital, providing medicines, and medical aid to animals in distress ,benefitting more than 20,000 animals. Research project on Aquaculture was also supported by the Company that is making efforts to bring concrete welfare changes to the condition under which fishes are farmed. Through the emergency relief provided during the disease outbreak like Argulus, Red disease, etc., more than 30 lakh lives of fishes were saved.


Animals in distress

Under the environmental initiative, considerable growth is seen of the 9000 saplings planted last year through the Miyawaki technique. The plantation is successfully moving towards being a fully grown self-sustaining forest thereby enhancing the flora and fauna of the area.


Saplings planted

Sustainable drinking water and livelihood project was implemented in rural Maharashtra. The project in Phase I built the capacity of farmers from 4 villages, conducted need assessment covering a population of 10,006 villagers and constructed One Line Farm Pond in Padali Deshmukh village that will benefit more than 1000 villagers. This line farm pond will support farmers to store the rainwater and utilise it towards cultivation of crops.

Community Development Kalpa Gramodaya

The Company has assisted in establishing a community library in Khorpa village, which is located near its Raipur Plant. The library will serve various members of the community, including children, women, elderly, and youth by providing access to motivational books. The population at Khorpa which is over 4,000 villagers will benefit from the project.

In addition, the Company has also constructed WaSH facilities in five schools located in West Bengal. These facilities consist of separate dishwashing and hand-wash areas, as well as water purifiers to ensure access to safe drinking water. The improved infrastructure has had a positive impact on the health and hygiene of school-going children in the area.

The project is also focused on need based interventions like digging of borewells, providing for solar chimney and supported infrastructure refurbishment for residential homes for orphan, blind and elderly beneficiaries.



Risk management

The Company is primarily engaged in executing large and complex EPC projects in domestic and international markets. Hence, it is exposed to a variety of risks locally and globally. The Company has a risk management committee that identifies internal and external risks that are unique to the Company including financial, operational, sectoral, sustainability (including ESG-related risk), informational, cyber security and other threats. The committee is responsible for monitoring and directing the application of the risk management policy. This includes assessing the effectiveness of risk management processes and systems for risk reduction, as well as methods and procedures for internal control of identified risks. Additionally, it ensures that the right procedures, systems and methodologies are in place to identify and evaluate risks related to the Companys operations. The risk management committee aids the Board in the risk management process by identifying and assessing any changes in risk exposure, reviewing risk control measures and approving remedial actions wherever appropriate.

The enterprise – wide risks for the Company and their mitigation measures are summarised below:

Health, safety & environment (HSE)

The companys business is subject to extensive health, safety and environmental laws, regulations and standards. With the changing requirements and stakeholder expectations, it could result in increased cost or litigation or threaten the viability of operations.


HSE is significant for a company being an EPC player. It is important to comply with international and local regulations and standards, protecting the people, communities and the environment from harm, and the business operations from interruptions. Policies and standards are in place to mitigate and minimise any HSE related occurrences. Safety norms are issued and continue to be issued to reduce the risk level in high-risk areas. Systematic monitoring, a review mechanism and process of compliance reporting are in place.

Loss of Biodiversity

Loss to biodiversity is one of the risks that is continuously being stressed upon. Our natural habitats are being exploited leading to endangering of various species of flora and fauna. Some of these activities can have irreversible consequences on our planet. Loss of biodiversity can impact the projects significantly since it can attract stringent regulatory policies that can even lead to disruption in business operation.


To deal with these issues, the company is in process to set framework for biodiversity management and follow the process of screening the area and operations that would be carried before starting a project. The company would undertake projects sustaining the biodiversity of the surrounding area and location.

Solid Waste Management

Proper disposal of waste from operations is essential for environment protection and safety. Some of the waste are stored in secured area where substantial area of land is required. Land availability is becoming difficult and storage of waste has its own risk as well.


The operations of company are guided by 3R principle: reduce, reuse and recycle to manage hazardous and non-hazardous waste. Company has set up processes to recycle and manage proper disposal of waste. Regular meetings and monitoring carried out to manage waste disposal mechanism. The company ensures that statutory criteria for waste management are met and follow the circular economy principle.

Operational Risk

The Company operates in the EPC industry and is exposed to a variety of operational risks that could result in unanticipated delays in project execution and unplanned interruptions of operational operations, negatively affecting the Companys top and bottom lines.


To reduce the risk involved with projects, the Company has established policies and procedures. To enable timely execution and optimum value generation for all stakeholders, projects are analysed within the operational risk spectrum using best practices.

Cyber security risk

The Company is undergoing digital transformation and thus, cybersecurity has become a key concern for the continuity of business.


Cybersecurity practices are being implemented under the guidance of the Risk Management Committee of the Company. These practices are grouped into people, process and technology control areas under the company-wide Cyber Security Assurance Framework.

Employee awareness of cybersecurity is being enhanced through initiatives such as online cybersecurity awareness campaigns on phishing and e-mail security. Network devices, server operating systems and hardware are upgraded periodically.

The Company also actively monitors security logs to detect any malicious attempts and takes the necessary measures to mitigate the risk. Adequate data safety is ensured during its creation, storage, transit and retrieval.

Client Counterparty Risk

This risk pertains to the counterparty will default on its contractual obligations resulting in financial loss to the Company.


The Companys major customers include government bodies and public sector undertakings. Majority of the International projects are funded by the multilateral agencies.

For private customers, the Company evaluates the creditworthiness based on publicly available financial information and the Companys historical experiences. The Companys exposure to its counterparties are continuously reviewed and monitored and appropriate measures are adopted based on the outcome of analysis.

Concentration Risk

Client relationships play integral part for EPC service companies. Our business has a history of client retention and continue to derive a significant proportion of revenue from repeat business built on successful execution of prior orders. The company has projects spread across different geographies and regions for each business segments. For certain projects, the client remains same with presence in different geographies.


The Company is exposed to the risk of revenue concentration with top customers. Focused efforts are taken to expand the client base and geographies. Over the years, our geographical presence in 40 countries from FY2013 has increased to 70 countries in FY2023. The company is penetrating to different regions where there are opportunities on account of infrastructure development and grid integration and upgradation. The Company engages periodically with external experts and government authorities to assess potential impacts of geopolitical situation on the projects, supply chain logistics and commodity prices. The business development teams are constantly scouting new clients and also undertake risk assessment before finalizing of the projects. In terms of any old clients, they review and assess their credit profile and payment terms.

Geopolitical and Regulatory Risk

The Company operates in numerous geographies and faces risks on account of protectionist policies, political dynamics, trade barriers, sanctions, and geopolitical conflicts.

With operations in multiple geographies, the Company is exposed to global compliance risks related to various statutes, laws and regulations.


The Company frequently analyses international sanctions and funding to cover its exposure in the local markets. It also develops appropriate mitigation methods that address the viability of operating in the country and strategic sourcing possibilities. The Company takes steps to adhere to all laws. It also monitors the changes and ensures compliance therewith is taken care of by the internal teams within the Company. The Company also retains the services of subject matter experts and legal counsel with expertise in particular nations to provide guidance on legal issues and compliance.

Financial Risk

Interest rate risk, exchange rate risk and liquidity risk are the three major financial risks. Exchange rates and interest rate fluctuations impact the Companys finances and profitability. The company faces project delays and adverse contractual payment terms leading to increased working capital requirements.


The Company uses a variety of fund-raising products with a range of maturities to manage interest rate risks in a dynamic

140 manner. It uses a mix of its domestic and international order books scattered across several locations as a technique for reducing currency risk. In order to reduce the exposure to foreign exchange-related risk, it also uses currency-forward contracts. The Company has access to well diversified sources of liquidity through various consortium banking arrangements and institutions. Beyond this the company relies on access to trade finance and capital markets. It also continuously examines its liquidity levels, as well as the state of the economy and capital markets.

The Company also deploys specific cashflow management strategies and processes to monitor and review regularly and takes corrective actions, as may be required to manage the working capital.

People risk

The need to maintain employee relations, attract and retain talent, and create an engaged set of employees has become important in an environment where talent is becoming scarce.


The Company actively engages with the workforce on a regular basis to learn about their requirements, objectives and any potential problems. Based on ongoing employee feedback, policies, practices, remuneration and developmental interactions are adjusted.

It employs a methodical hiring process to attract the best candidates in the industry. To cultivate future leaders within the organization, the Company offers periodic training and mentoring, grooming and provides growth opportunities.

Commodity Price Variation and Currency Fluctuations

The Company deals with a variety of commodities, including cement, insulators, steel, zinc, copper, aluminium and zinc. Commodities are a significant part of the direct cost incurred by the Company for its business activities including fabrication of towers and erection of the transmission lines and substation. Due to factors such as supply-demand mismatch, competition, production levels and taxation, they may have varying prices and supplies.

If input costs increase without adequate hedging measures, fixed pricing contracts may adversely impact the Companys profits.

Also, with businesses spread across various nations, unfavourable currency fluctuations can affect the Companys financials.


As a part of broader Risk Management Policy, the Company has a dedicated framework to manage commodity risk. The Companys business is significantly dependent on availability, cost and quality of raw materials and fuels for the construction and development of projects undertaken. The Company currently manages such risk through the price escalation clause in some of the Contracts whereby the fluctuation in the input cost is passed on to the Client. In case of firm price contracts, the Company enters into a Commodity Forward Contract to hedge its price risk or pass on back-to-back firm price contract to its vendor/contractor. The Company addresses the risk of fluctuation in commodities which cannot be hedged by building adequate contingencies based on market trends.

Internal control

The Company maintains adequate internal controls, appropriate to the nature and size of the business, and commensurate with the scale and complexity of its operations. The Company has implemented robust policies and procedures, which inter alia, ensure integrity in conducting its business, safeguarding of its assets, timely preparation of reliable financial information, accuracy and completeness in maintaining accounting records and prevention and detection of frauds and errors. At the heart of the processes is the extensive use of technology. This ensures robustness and integrity of financial reporting and internal controls, allows optimal use and protection of assets, facilitates accurate and timely compilation of financial statements and management reports and ensures compliance with statutory laws, regulations and company policies. It has continued its efforts to align all its processes and controls with global best practices. The Company has aligned its internal controls with the requirements of Companies Act, 2013.

The statutory auditors of the Company have issued an attestation report on the Companys internal control over financial reporting (as defined in section 143 of the Companies Act, 2013). The Board of Directors and management at all levels of the Company demonstrate through their directives, actions and behaviors the importance of integrity and ethical values to support the functioning of the system of internal control.

The same is demonstrated through various means including, but not limited to Code of Conduct together with the Whistle Blower Policy and Anti Bribery & Anti Corruption Policy for raising concerns about unethical behavior, improper practice, any misconduct, any violation of legal or regulatory requirements, actual or suspected fraud by any official of the Company without fear of punishment or unfair treatment, appraising Senior Management and the Audit Committee of the Board periodically on the internal processes of the Company with respect to Internal Controls, Statutory Compliances and Assurance etc.

The Company has Group Assurance department besides external firm acting as an independent internal auditors that reviews internal controls and operating systems and procedures. A dedicated Legal Compliance division ensures that the Company conducts its businesses with high standards of legal, statutory and regulatory compliances.

The Audit Committee of the Board reviews the annual internal audit plan prepared by the Group Assurance department, covering core business operations, corporate departments as well as support functions. Corporate Audit Services conducts independent internal audits and the significant audit observations are presented to the Audit Committee every quarter along with update on implementation of recommended remedial measures and agreed actions by the management.

The effectiveness of internal controls were tested during the year by the Statutory Auditors as well as by the external audit firm and no reportable material weaknesses either in their design or operations were observed. The evaluation included documentation review, enquiries, testing and other procedures considered to be appropriate in the circumstances. The Company also has an institutionalized mechanism of dealing with complaints of sexual harassment through a formal committee constituted in line with the Companys Policy on the ‘Anti Sexual Harassment policy.

Cautionary statement

This report comprises the facts and figures along with assumptions, strategy, goal, and intentions of the Company which may be “forward-looking”. The Companys actual results and performance may differ considerably from those presented herein. The Companys performance is dependent upon global and national economic conditions, the price of commodities, business risk, changes in the Governments rules and regulations and so on.