rites ltd share price Management discussions

The financial year 2023 was another pivotal year for RITES. With a well-diversified business model, the company demonstrated agility and adaptability, which allowed us to record the best-ever performance in the Consultancy segment despite export headwinds. Embarking on the next level of sustained growth, the company is capitalizing on its core competencies to help build smart & sustainable infrastructure with a three-pronged approach:

Innovation, Execution and Transformation

ECONOMIC OVERVIEW

In the financial year gone by, the world economy faced severe headwinds amid poor growth prospects, elevated inflation, and heightened uncertainties. A confluence of factors — the lingering Russia-Ukraine war, the recent banking sector turmoil, legacy effects of the Covid-19 pandemic, the worsening impact of climate change and ever-changing macroeconomic conditions — is clouding the economic outlook even as the global picture shows a slight improvement.

As per the United Nations World Economic Situation and Prospects Mid-Year Report, the deceleration in global growth is likely to be less severe than anticipated, mainly due to persistently robust spending (household) in the largest economies. The IMF World Economic Outlook April 2023 echoes similar sentiments; global inflation will cool down, although more slowly than initially anticipated, but is expected to touch the targeted levels of central banks by 2025. Advanced economies are expected to experience a deceleration in growth, but the global economy is projected to remain on a path of expansion. While there are challenges to be addressed, the outlook remains positive.

Despite the gloomy backdrop of what appears to be turning out to be a difficult year for the global economy, Asia and the Pacific remain a dynamic region. As the region increasingly lifted Covid-19 restrictions, amplifying mobility, boosting domestic demand, particularly in emerging market nations, and supplementing in closing output gaps. As per the IMF Regional Economic Outlook Edition May-23, economic growth in Asia and the Pacific is projected to increase this year to 4.6% from 3.8% in 2022. This means the region would contribute around 70% of global growth on Asias dynamism.

Indias economy has been showing a positive outlook, with a robust growth of 7.2% in the current year, making it the 5th largest economy globally. As per World Bank global economic prospectus report June 2023, the Indian economy is expected to remain one of the worlds fastest growing major economies with a growth rate of 6.3% in FY24. As per the IMF forecast, India is expected to become a $5 trillion economy by FY27, however the governments resolve towards faster infrastructure development through supportive policy reforms is expected to catalyse growth and beat the IMF deadline.

Through its policies such as PM Gati Shakti, National Infrastructure Pipeline, PM Awas Yojana, Agricultural Accelerator Fund and more, the Government significantly increased capital expenditure on infrastructure projects to build back medium-term demand and prepare the economy for a sustained long-term expansion.

Also, Indias G-20 presidency coupled with growth in world ranking is a testimony that the Indian economy is on the right track and being recognised as a bright spot in the world economy.

INDUSTRY OVERVIEW

As per the report published by Allied Market Research in December 2022, the global transport infrastructure industry has been growing at a steady pace, with the market size valued at $1.77 trillion in 2021, and projected to reach $5.1 trillion by 2026. Asia accounts for the largest share of the global transport infrastructure market, followed by Europe and North America. The market growth can be attributed to the increasing investments in transport infrastructure, technological advancements, and the growing demand for public transport.

In Asia, the transport infrastructure industry is witnessing significant growth, with an increasing demand for mass transit systems and the expansion of transportation networks. As per the UNCTAD June report, the market size of the transport infrastructure industry in Asia was valued at $2.4 trillion in 2020, and it is projected to reach $3.5 trillion by 2026. India is one of the largest markets in the region, with the country investing heavily in its transportation infrastructure.

In India, the transport infrastructure industry is witnessing a paradigm shift, with the government focusing on improving the countrys transportation network to drive economic growth. Indias transport infrastructure industry is expected to reach $326 billion by 2025.

The Governments focus on developing green and sustainable transport infrastructure, as reflected in the 2023 Budget which recognises the infrastructure sector as a key contributor to the vision of sustainable growth in Amrit Kaal, is expected to provide a significant boost to the industry. Also, the 2023 Infrastructure Agenda under the Indian G20 Presidencys theme of One Earth, One Family, One Future underlines the priorities of building resilient, inclusive & future-ready urban infrastructure, making cities economic centres of growth and the importance of equitable growth. These prospects along with the enhanced capex outlay of Rs 10 lakh crore (representing 3.3% of GDP), including the highest outlay for railways, development of regional airports and transport infrastructure projects, will enhance growth potential, job creation, pool private investments and provide a cushion against global headwinds.

II. STRENGTHS & WEAKNESSES

RITES has built a reputation over the past 49 years of delivering top-notch engineering consultancy services across sectors. The company provides a comprehensive range of consultancy services and has a diversified sector portfolio in the transport infrastructure space. It has successfully completed projects to expand its reach and expertise, positioning itself to take advantage of additional business opportunities from the current clients as well as to meet the needs of a larger pool of potential/new clients. The companys diversified sector portfolio allows it to access industries with growth potential as per the changing macroeconomic trends and to expand operations in industries where the company already has a sizable presence. As an example, the company has pooled its resources from various verticals working on sustainability and related projects and grouped them under Sustainability Unit.

Leveraging its position as a public sector company and its relationships with governments, government agencies and other public sector companies in India and various countries where it has delivered projects in the past, the company can increase its presence and participation in new emerging infrastructure sectors and in developing business relationships with governments and government instrumentalities as well as private sector corporations both domestically and internationally.

With unique export product offerings and strengths, RITES has an edge over others. The company has supplied rolling stock to 12 countries and being an MoR owned organization, it has access to new state-of-the-art products of Indian Railways for exports. Its product portfolio comprises Locomotives, Coaches, Wagons and Train Sets (including semi-high-speed trainsets) in various gauges --- Narrow, Meter, Standard, Cape and Broad. It has the unique strength of providing after-sale services including but not limited to warranty, spare part support, incidental services, and training etc. Over 49 years, the company has developed a strong quality assurance vertical, which is testing, at both process as well as final stages. Having the ability to harness relevant technology for mega projects, the company has delivered and been delivering projects in critical areas of infrastructure.

RITES success depends largely upon highly skilled engineering and transportation professionals, particularly project managers at senior & mid-level positions. The company faces a continuous challenge to recruit and retain suitably skilled personnel, particularly as it continues to grow. There is significant competition for engineering, management, and other skilled personnel in India, and it may be a challenge to attract and retain the personnel company needs in the future. However, the company is taking various measures such as employee training and development, upskilling, job rotation, and career growth opportunities to overcome the challenge.

III. OPPORTUNITIES & THREATS

In the backdrop of the governments strong emphasis on developing innovative and sustainable large infrastructure projects, opportunities galore for a player like RITES that has a multi-sectoral presence.

An all-time high capital outlay for the Railways, $1.3trillion National Master Plan for Infrastructure - Gati Shakti, the proposed Urban Infrastructure Development Fund, plan to revive 50 more airports, Amrit Bharat Station Development Scheme, focus on export of indigenous railway products such as Vande Bharat, Maritime India Vision 2030, Parvatmala Programme and other systemic and effective reforms in the sector are making the next fiscal year a critical one for effective execution and celerity of completion. Besides, the Net-Zero goal has emerged as a top-notch priority. Thus, all these offer RITES a vista of opportunities, vis-a-vis engineering to green consulting, to grow and contribute to build India@100.

Also, infrastructure networks of transport, communication and energy are expanding rapidly across borders. Post- Covid, sectors such as transport, including Light Rail System and multi-modal transport network; renewable energy; and info-communication technology have been reprioritised for infrastructure development in Southeast Asia, Africa, and Latin America, offering opportunities for technical consultancy and export of indigenously developed and customized rolling stock to clients in the region. Banking on its core expertise, RITES is strategically moving ahead, under its initiative RITES Videsh, to tap opportunities emerging in the regions and foray into new-age areas and markets as well.

Evolving as a Future-Ready company in a dynamic economic environment with ever-emerging industry-related challenges, RITES is aware of potential business threats. The policy shift to competitive bidding, opening up of sectors, including railways, for private participation and changing policy & regulatory environment pose challenges to the company as these may moderate the margins. However, by undertaking more strategic initiatives, underscoring its brand strength and commitment to quality, the company is geared up to take on the Best in Class.

IV. FINANCIAL PERFORMANCE

With highest-ever consultancy, including international consultancy, the company recorded a total income of Rs 2639 crore compared to Rs 2661 crore in the previous year. Profit after tax for the year stood at Rs 531 crore as against Rs 497 crore in the year before.

It earned an operating turnover of Rs 2520 crore as against Rs 2575 crore in the previous year. This revenue is achieved on account of growth in all segments barring exports. The net worth has grown from Rs 2399 crore to Rs 2503 crore and the company has remained debt-free. During the year, the company has spent Rs 14.10 crore towards corporate social responsibilities as compared to Rs 13.90 crore last year.

Continuous satisfactory performance to win clients confidence and efforts on business development have contributed to close the year with an order book of Rs 5870 crore with orders worth Rs 3080 crore secured in FY23 only.

Keyfinancial ratios

Particulars	2022-23	2021-22
(i) Return on Capital Employed	29.31	28.90
(ii) Current Ratio	3.93	3.85
(iii) Operating profit margin (%)	23.39	22.86
(iv) Net profit margin (%) (PAT / Total Revenue)	20.11	18.68
(v) Return on net worth (%) (PAT/Avg. net worth)	21.64	21.02

Segment-Wise Performance

During the year, consultancy, including quality assurance services, continued to provide highest percentage of revenue which is followed by turnkey, exports and leasing.

Particulars	2022-23		2021-22
	Operating Income (Rs in crore)	%	Operating Income (Rs in crore)	%
Consultancy
Domestic	1030	40.87	915	35.53
Abroad	159	6.31	104	4.04
Turnkey	885	35.12	459	17.83
construction
projects
Export	308	12.22	966	37.51
Leasing	138	5.48	131	5.09
Total	2520	100	2575	100

Expenditure

Total expenditure has decreased to Rs 1930 crore from Rs 1987 crore last year. The decrease is mainly on account of decline in exports, which has led to fall in exports cost from Rs 706 crore last year to Rs 217 crore this year. Expenses related to employees have remained almost constant. Expenditure on supplies and services increased to Rs 974 crore from Rs 590 crore on account of higher execution of turnkey projects.

V. OPERATIONAL PERFORMANCE

The nearly five-decade-long journey of RITES, preferred by clients across the globe and ranked among the Top-500 listed companies in the country based on market capitalization, is a testimony to high quality of solutions and services delivered, driven by its talented pool of professionals.

Overseas

Having footprints in more than 55 countries, RITES continues to build on its legacy and international presence. This year, the company achieved its highest-ever revenue from international consultancy and under its strategic initiative RITES Videsh, the company aims at enhancing its international business with a focus on emerging opportunities (export and consultancy) in Southeast Asia, Africa, and South America.

During the year, RITES executed projects in 13 countries and some of these projects, such as 4-lane national highway in Bangladesh, dual gauge railway line from Bogura to Shahid M. Mansur in Bangladesh, Tshesebe to Masunga Road in Botswana, Consultancy for Integrated Check Posts at Nepalgunj and Bhairawaha in Nepal, study project for port in Indonesia and Myanmar, consultancy for runway rehabilitation at Gautam Buddha International Airport in Nepal and Project Management Consultancy for highway project in Guyana (by RITES wholly owned subsidiary RITES (AFRIKA), progressed well

With the supply of 4 DEMU trainsets and 1 locomotive to CFM Mozambique, RITES completed its contractual supply obligation for DEMUs and locomotives. In addition, RITES supplied 25 passenger coaches to Mozambique. Also, RITES completed the metro study for Bahrain & phase- IV of Mauritius Metro and Detailed Project Report for Link Road & helipad in Indorama Complex, Nigeria. After successfully delivering Mauritius Metro Phase I and II as General Consultant, phase III of the project was inaugurated during the year.

During the year, the company secured assignments for Construction Supervision of Highway in Guyana, PMC for Eastern Railway Sections in Ghana, High Occupancy Vehicle Lanes Study on Budaiya Highway in Bahrain.

Domestic

RITES has always remained at the forefront in development of transport infrastructure & related technologies and turnkey engineering solutions for clients from Ministries/ Departments of Central and state governments and private corporate houses.

During the year, the companys association continued with several railway projects including DFC, high-speed passenger corridors, semi high-speed corridors, rail connectivity for industry/ports for bulk movement of freight, capacity augmentation projects, railway electrification, signalling and telecommunication, Sub-Urban rail Projects, workshop modernization/capacity augmentation, traffic studies, detailed engineering of bridges, tunnels and geo-technical investigations, including structural health (condition) monitoring of railway bridges and other assets.

During the year, the company secured the Independent Safety Assessor (ISA) certificate and became the second company to have this certification in India. Indian Railways, the biggest client for Quality Assurance services of RITES, selected 4 parties to do the inspection works, which may have impact on revenue and profits during the FY24. RITES has continuously been making significant progress and has considerably enhanced its quality assurance business with non-railway & private clients such as SAIL, Oil PSUs, NTPC, state PWDs, state electricity boards/utilities, smart city projects, state rural and urban development projects, etc. RITES provides third-party inspection services for head hardened rails and long products at their conversion and wet leasing agents across the country.

In the rolling stock leasing segment, RITES owns 69 locomotives which are operating on the wet lease basis at major ports (Visakhapatnam, Mumbai, Mormugaon, Dhamra, Haldia etc), steel plants (Bhilai, Rourkela, Burnpur, Tata Steel- Kalinganagar, Jindal- Aungul in Odisha and more) and other sectors. The company continues to provide services for operation and maintenance of railway systems to domestic clients in power, steel, cement, coal, and port sectors. At present, it is engaged in maintenance of over 240 diesel locomotives and 2,000 wagons owned by NTPC, SAIL etc.

The sector-wise details of domestic projects undertaken or executed during the year are covered under RITES Sectors of Operation.

wide consultancy expertise coupled with a multi-pronged approach, finds itself fully aligned to tap new opportunities, new markets, and new areas.

Large-scale development of transport networks will continue in many economies, including India, given the changing economic dynamics and rapid urbanisation. To ensure faster, safer and timely movement of goods and public, there is a massive thrust on railway electrification, semi high speed, track/railway line works, road infrastructure to accommodate more vehicles, urban mobility to relieve congestion, port infrastructure for strengthening last-mile connectivity and supporting expansion in international trade, alternate mobility solutions (ropeways) and sustainable & low-carbon infrastructure. This offers a constructive outlook to RITES as it is capable of undertaking complex and multi-faceted projects emerging under these thrust areas to witness sustained growth.

Also, Southeast Asia, Africa and Latin America are the geographical zones that harbour strong growth potential for RITES business. Under its strategic initiative RITES Videsh, the company is exploring opportunities with prospective/ existing clients for consultancy and export of rolling stock across gauges.

Taking forward its Transforming to GREEN campaign and expanding the ambit of green consultancy through the

Sustainability Unit, RITES undertakes projects involving advanced sustainable solutions. Working in this direction, the company has recently collaborated with IIT-Kanpur for sustainability works, including NCAP and R&D on air quality sensors in line with MoEFCC and MoHUAs campaign to address pollution and waste management (solid and wastewater).

Digitalization and technological advancements are also transforming the way that infrastructure is designed, built, and operated. RITES is positioned to capitalize on these trends as it is continually exploring new technologies and approaches to improve its services and deliver better outcomes.

Overall, the outlook for RITES is positive with emerging opportunities for growth and innovation. Leveraging its core strengths and adapting to the changing ecosystem, RITES aims at delivering value to its clients and consolidating its position in the industry.

VII. SECTORS OF OPERATION

With a well-diversified business model, RITES continues to follow a path of systematic and professional operations to provide integrated solutions for building Infra4Future and drive growth in sectors such as railways, highways, metros sustainability and urban engineering, airports, ports, ropeways, institutional buildings, inland waterways, and renewable energy.

RAILWAYS

RITES envisages its continued presence in projects planned in the railway sector such as Dedicated Freight Corridors, high-speed & semi-high speed passenger corridors, capacity augmentation projects, railway electrification, sub-urban railways, workshop modernisation, last and first mile connectivity projects, freight terminals & logistics parks, station redevelopment, long bridges and tunnels, and energy & sustainability solutions.

The Offerings

Infrastructure Studies: Feasibility Studies, Preliminary Engineering-cum-Traffic Studies, Final Location Surveys including Arial-LiDar and drone based, Detailed Project Reports and National Rail Plans.

Engineering Services: Detailed Engineering, Integrated Design Services, and Technical Support; rehabilitation & modernization of railway systems; Conceptualisation and Design of rail-based transportation systems, including merry- go-round systems; Project Management Services, including turnkey solutions.

Rolling Stock Design: Studies and implementation of technological upgradation of rolling stock; maintenance and operational facilities such as Smart Yards, Coaching and Freight Maintenance Depots; design and development of rolling stock, including modification/upgrade of rolling stock designs, for domestic as well as for export markets; design validation.

Technical Services: Leasing of RITES locomotives; operation and maintenance of locomotives and wagons; rehabilitation, upgradation and maintenance of freight stocks; rehabilitation and maintenance of tracks; operation and maintenance of machinery, plants and equipment; periodic overhaul/ major schedules of locomotives, wagons and diesel generator sets; management of railway system including operations, workshops, depots and ancillary facilities; study for upgrade, rehabilitation of rail systems etc.

Signaling & Telecommunications: Field survey and data collection, feasibility studies, Supervisory Control And Data Acquisition (SCADA), design of panel interlocking/ route relay interlocking/electronic interlocking, optical fibre communication networks, Mobile train radio communication (GSM-R).

Electrical Engineering: Construction supervision and commissioning services for Railways overhead line and general electrification works including sub-stations, grid substations, HVAC and fire alarm system. E&M work, escalators and elevators, DG sets, quality assurance and surveillance inspections and preparation of operation and maintenance manual. Other than railways, Company also provide services for rural electrification, solar modules photo voltic system and building electrification.

Information Technology: Consultancy services to Railways in the field of web-based technologies, system analysis and design, software development, implementation support, identification of hardware and system software requirements, software conversion/porting of Computerized Commercial Applications, particularly in the areas of Company Accounting, Payroll, Material Management, Supply of Information and Operation Management IT solutions.

On the job

During the year, the company has executed and secured the following projects (select ones) under the Railway sector. Works in progress are categorized as ongoing projects.

Select Projects Secured:

PMC for railway sidings at Ashoka, Magadh, Amrapali, Pelma, KDH, Bhatgaon, Talcher etc for Coal India Limiteds Subsidiaries.

ROH Freight Maintenance Maneswar - Extension

Development of Coaching Depot at Kotegan

RTRS Track Alignment & Maintenance

Detailed Design Engineering consultancy for yard remodelling work at Kalyan station

Signalling & Telecommunication work of Dhaulpur- Gwalior section

Select Ongoing Projects:

Establishment & Maintenance of CORS Network for Mumbai-Ahmedabad High-Speed Rail Project

Consultancy for Construction of Dual Gauge Railway Line from Bogura to Shahid M. Mansur Ali Station, Sirajganj, of Bangladesh Railway

Final Location Survey (FLS) for New Broad-Gauge line from Rangpo to Gantok in Sikkim

Feasibility study for Rail infrastructure upgradation of VSTPS (including common facilities for SSTPS & RhSTPS)

Project Management Consultancy for railway siding for THDCIL at Khurja

Supervision of box-pushing work under railway line within railway land near Pragati Maidan, New Delhi

PMC for 3 ROBs/flyovers at Amritsar

RTRS Track alignment and maintenance at TBRL, Ramgarh

Third line of Anuppur-Pendra section

PMC for rail infrastructure at Ghatampur Thermal Power Plant, UP

General Consultancy for Haryana Orbital Rail Corridor (HORC) from Palwal to Sonipat via Sohna Manesar and Kharkhoda Project

PMC for railway siding and marshalling yard for (5x800 MW) YTPS at Nalgonda

Consultancy services for proposed private railway siding at Rudrampur, Bhadradri-Kothagudem, Telangana

PMC for (4*270 MW) BTPS for Railway siding and Marshalling yard for BTPS, Manuguru, Bhadradri, Kothagudem

Civil and P-Way works for 2nd railway line for loading of caustic soda wagons at port facilities at Vizag

Railway Electrification of Kalaburagi (Gulbarga) - BIDAR BG single line section

Select Projects Executed:

Final Alignment design including Aerial LiDAR Survey and Other Related Works for Delhi-Ahmedabad high Speed Rail Corridor

Facility augmentation of railways workshop at Lumding, Assam

PMC for Doubling of Railway line from Yeshwanthpur - Channasandra & Baiyyappanahalli - Hosur for Kride

Feasibility Study & DPR for Railway siding facilities for HPCL & BPCL in Tamil Nadu

1st phase of RTRS Track alignment at TBRL, Ramgarh Range

PMC of rail connectivity works for proposed silo near spur no.3&4 under Jagannath area of Mahanadi Coalfields Ltd

PMC for railway siding at NTPC plant at Lara (Phase - II)

PMC for Rail Road over Bridges (ROB) at Kotra and Mahasamund and Road under Bridges (RUB) at Gogaon and Telghani in Chattisgarh

Adept in providing highway consultancy services from the early planning stages of a project, design development and through final implementation, RITES partners in building a road network involving greenfield and brownfield projects of expressways, highways, long bridges/viaducts tunnels, ROBs, RUBs, flyovers, grade separator and skywalks.

The Offerings

Advisory/technical assistance services

Pre-Feasibility, Strategic Option, Feasibility Studies and Detailed Project Reports

Transportation, Traffic and Network Improvement Studies

Proof-checking and review of design Pre-qualification and procurement of works Construction Supervision/Project Management Authoritys Engineer/Independent Engineer Services Road safety audit and External technical Audit Condition Surveys and health study of bridges Third Party Inspection/Quality Assurance Maintenance planning/management of road networks

On the job

During the year, the company has executed and secured the following projects (select ones) under the highway sector. Works in progress are categorized as ongoing projects.

Select Projects Secured:

Construction Supervision of East Bank-East Coast Road Linkage Project (Ogle to Eccles (Haags Bosch))-Phase-I, Guyana

DPR for approach road to LGB International Airport at Guwahati, Assam

DPR for flyovers at Cycle Factory Junction at Guwahati Garbhanga Road; near Downtown Hospital on Guwahati-Shillong Road; at Fatasil Charali on R.K Choudhury Road; near Rajib Bhawan (ABC Point) on Guwahati-Shillong Road in Guwahati, Assam

DPR for 7 Elephant Corridors locations on the Rani- Kaninadhara Road in Guwahati, Assam

DPR for two-lane elevated road across Deepor Beel between Swahid Smarak Approach Road and Kaninadhara Road in Guwahati, Assam

DPR for Road Section between km 0+000 to km 1+000 (Sinking Zone near Tarapur - Shibbari from km 0+450 to km 0+550) in Silchar, Assam

DPR for Improvement and widening of Assam Trunk Road from Garal to Palashbari in Guwahati, Assam

Feasibility Study Report for Elevated Road on Road Section from Ram Nagar to Trunk Road (near RRNMU Building) of NH-37 and from Capital Point (km 0+000) to Circular Point of Rangirkhari (km 2+300) of NH-306 in Silchar, Assam

Safety Consultant for Pathrapati-Katghora of Bilaspur- Katghora section of NH-111 (New NH-130) in Chhattisgarh and for Gujarat-MP Border along NH-59 in Madhya Pradesh; for projects under O&M stage in Karnataka; for Pal./Khemana Abu Rd to Swaroopganj and Pal-San-Sam of NH-27 in Gujarat; for Samakhiyali to Gandhidham of NH-41, Samakhiyali-Garamore- Bamanbore and Porbandar-Jetpur of NH-27 in Gujarat

Independent Quality Audit of KIIFB Projects

PMC for transport projects under KIIFB

Select Ongoing Projects:

PMC for Improvement of Ashuganj Akhaura Land Port Road as 4-Lane NH Project in Bangladesh

Construction Supervision of Tshesebe-Masunga Road, Botswana

DPR for 2 laning with hard shoulder from Meluri in Nagaland connecting Tusom- ChingaiKhamsom- Chamu-Nampisha-Khongla-Kasong-Saibol-Narum- Moreh- New Samtal-Khongtal-Behiang to Singhat in Manipur, DPR for Greenfield expressway from Raxaul to Haldia Port

DPR for 4-laning of Kharagpur-Moregram section of NH14 in West Bengal

Select Works Executed:

Engineering Study of Road Network and Detailed Design of Link Road and Helipad at Indorama Eleme Complex, Nigeria.

Project Management Consultant (PMC) cum External Technical Auditor (ETA) for Construction of Purvanchal Expressway (Lucknow to Ballia)

Consultancy Services to supervise/scrutinize/ vet certain pre-construction activities on Ganga Expressway

Safety Consultancy Services during Construction Period of 4-laning of Chikhali to Tarsod (Package - IIA) section of NH-6 in Maharashtra

DPR for construction of Traffic Dispersal System along Kona Expressway (NH-117) for upgraded Santragachi Railway Station and new Santragachi Bus Terminus in West Bengal

DPR for comprehensive Traffic Management Plan for Nabadiganta Industrial Township

Feasibility Study Report and DPR for widening of Existing RUB (Bridge 01-Gaya Bridge of Railway) at Dhanbad, Jharkhand

Consultancy Services for On-street Parking Management in New Town, Kolkata

MFTROS

Having provided consultancy for the Mass Rapid Transit Systems (MRTS) spanning over 2000 km in more than 30+ cities, RITES continues to leverage its expertise in all aspects of urban rail transit systems, road-based transit systems, metro rail systems, light rail transit systems, suburban rail system, Metro Lite and Metro-Neo systems.

The Offerings

Feasibility and Traffic & Transport studies

Detailed Engineering Studies and Detailed Project Reports (DPRs)

Detailed Design and General Consultancy for Public Transport Infrastructure Systems

Project Management Consultancy, including construction supervision of MRTS projects

Transport Planning and Policy at city, regional and national levels

Transit-Oriented Development studies Construction of depots and stations for metro lines

On the job

During the year, the company has undertaken the following projects (select ones):

Preliminary Design services for Bahrain Metro Extension to Bahrain Sport City

Proof-checking services for Ahmedabad Metro stations and Viaduct (Ph-I)

Ahmedabad Metro Rail Project (Phase-I)

Supervision of Metro Express Line, Phase-Ill (A Light Rail Transit System) in Mauritius

General Consultancy work for Pune metro (Phase - I)

Project Management Consultancy (Limited PMC) for the Civil Construction works of Bangaluru Metro Rail Project (Phase 2A & 2B)

General Consultancy for Haryana Orbital Rail Corridor

(HORC)

General Consultancy for Ahmedabad Metro Rail Project (Phase II); Nagpur Metro Rail Project (Phase-I); and Delhi Metro Rail Project (Phase-IV)

Detailed Design Consultancy for Elevated Metro Stations and Metro Depots (Apparel Park & Gyaspur) for Ahmedabad Metro Rail

Power Supply Distribution & 750V DC 3rd Rail Traction system with SCADA for Ahmedabad Metro (Phase-II) and Surat Metro (Phase-I)

Civil works of two Rolling Stock depots and Power Supply Distribution & 750V DC 3rd Rail Traction system with SCADA for Bhopal Metro and Indore Metro

Detailed Design for Power Supply and distribution system for Bangalore Metro Rail Project, Phase-I

General Engineer Consultancy for Ahmedabad Metro Rail Project Phase -II

DPR for metro neo electrcs city Bengaluru

AAR & DPR for MRTS in Bareilly and Jhansi city

Alternate Analysis Report for Bangalore Metro PH-3, Prayagraj, Jhansi

Construction of Challaghatta Depot for Bangalore Metro

AIRPORTS & LAND PORTS

With experience of consulting for over 100 airports, RITES primes itself in the field of aviation infrastructure and its related subdisciplines such as airports, heliports, terminals, cargo terminals, hangars, workshops and maintenance facilities, pavements and control towers etc. Also, RITES pioneered the concept of International Cross-Border Management through Integrated Check Posts (ICPs) in India.

The Offerings

Master planning, site selection and obstruction surveys Air traffic surveys, demand assessment and forecasting Project Feasibility Studies, Detailed Project Reports, Design and construction management

ATC systems design, communication and navigational aids, visual ground aid

Non-destructive evaluation of airfield pavement using HWD

On the job

During the year, the company has undertaken the following projects (select ones):

Design & PMC for the expansion of Gwalior Airport and Srinagar International Airport

Design and PMC for Gautam Buddha International Airport at Bhairahawa, Nepal

Design and PMC for Integrated Check Posts at Nepalgunj and at Bhiarahwa, Nepal

Design & PMC for development of Shivamogga, Hassan & Vijayapura Airports in Karnataka and Chitrakoot Airport in UP

Independent Engineer Services for operations, management, and development of Thiruvanantpuram International Airport

Preparation of Masterplan, DPR and EIA for development of airport at Raichur, Karnataka for day VFR operations

Design and PMC services for upgradation of infrastructure at Belora Airport, Amravati

TEFR for Development of Heliports at Shillong and Tura in Meghalaya

Feasibility Study for developing 4 airstrips in Nagaland

Consultancy for capacity enhancement of Chennai International Airport

Feasibility Study and DPR for development of heliports at Gurugram and Tamenglong

DPR for Integrated Check Post at Dodhra Chandni, Nepal

BRIDGES & TUNNELS

RITES offers structural engineering consulting services for transportation projects including road, rail and road-cum-rail bridges, river crossings, cable-stayed, suspension and extra- dosed bridges, approach structures such as rail/road viaducts, and tunnels. Our road/railway tunnel engineering services involve various modes of operation, including PPP, EPC, and so on.

The Offerings Bridges:

Techno-economic/Pre-feasibility Studies, Feasibility Studies, Engineering Surveys and Detailed Project preparation

River Training and Hydraulic Modelling

Slope stability, Geological, Geophysical and Geomorphological Studies

Detailed Engineering Studies, Design, Review and Proof-Checking

Technical Support, Designers Association/ Supervision during construction, Bridge Launching

Project Management, Quality Assurance and Bid Process Management

Structural Health Assessment and Monitoring, Repair and Rehabilitation of Structures

Standardisation of Bridge Inspection Procedure and preparation of Maintenance Manual

Tunneling:

Route selection and Alignment Studies; Prefeasibility and Feasibility Studies;

Detailed Engineering including Geological and Geotechnical Studies;

Detailed Design Consultancy, technical specifications and BOQ;

Expert Engineering Services, including supervision during construction;

Instrumentation and Rehabilitation Studies; Slope Stability Analysis

On the job

During the year, the company has undertaken the following projects (select ones):

Select Ongoing Projects

Repair and rehabilitation of 2nd Hooghly Bridge (Vidyasagar Setu, Kolkata) including replacement of Stay & holding down cables and bearing etc. for Hooghly River Bridge Commissioner (HRBC).

Detailed design including designers support during construction for Rail Bridge over River Yamuna Anand Vihar and Tilak Bridge stations of Northern Railway.

Detailed engineering including designers support during construction of 2 Nos. Rail Flyovers & 45 ROBs on various section of Eastern Dedicated Freight Corridor for DFCCIL.

Rail/Road Bridges comprising of PSC, steel, steel- concrete composite with single/continuous spans catering to forces due to LWR / CWR have been designed for USBRL project (Katra -Dharam - Qazigund- Srinagar - Baramulla sections of New BG Rail Link) in fragile and seismically sensitive Himalayan Region in J&K. Designs for slope stability with soil nails/ ground anchors including the Tunnel face development for 7 Nos. tunnels are being carried out with designers support.

Designing, developing, installation and commissioning of Structural Health Monitoring System (SHMS) for Special Br No. 39 (490m long) and Br No. 43 (777m long) for USBRL Project in J&K

Designing, developing, installation and commissioning of Structural Health Monitoring System for Bogibeel Bridge

DPR for Rail bridge (2.8 Km long - Double tracks)) across river Ganga on Vikramshila - Katareah Section

of EC Rly and at Farakka Barrage (3 km long - Four Railway tracks) for Eastern Railway.

DPRs for 4 highway tunnels across Key La (8.1 Km), Shinkun La (4.1 Km), Tanglang La (5.41 Km) & Lachalung La (7.2 Km) including approaches & bridges, slope stability etc. in Himachal Pradesh and Union Territory of Ladakh.

DPRs including detailed design and GT investigations for 11 tunnels and more than 100 bridges/ROBs/ RUBs (including river Engg.) in connection with Abu Road-Taranga Hill section for North Western Railway in Rajasthan

Supply, installation, instrumentation, 3D monitoring & construction supervision of 6 (six) Tunnels for doubling line between Jarati-Maligura station of KK Line of Waltier Division, East Coast Railway

DPR for 3 tunnels (at Namik La, Fotu La and Khardung La) and 100-km road in Ladakh

Hydrological Model Study for proposed New Rail bridge i.e. Vikramshila Bridge and Farakka Barrage Bridge over river Ganga for EC Rly & Eastern Rly.

Select Projects Executed

DPR for Road Bridge (3.17km long) across River Muriganga to connect Kachuberia, Sagar Island with Kakdwip in South 24 Parganas, West Bengal

Rehabilitation and assessment of the present health condition of the Br. No. 10 (UP & DN Line) at TATA Steel Meramandali (TSM) in Odisha

DPRs, including detailed design and GT investigations, for Bridges (32Nos) & Tunnels (52 Nos) in connection with Boddavara- Karakavalasa (51km) section on KK Line and Tikri-Bhalumaska (45.86Km) section on KR line of East Coast Rly in Odisha.

GT investigations, including carrying out marine boreholes, for LPG import facility of HPCL at Dahej, Gujarat.

DPR for the proposed Tunnel in connection with Nathdwara- Nathdwara Town New BG Line project for NW Railway

Hydrographic and topographic survey of minor, major and important bridges along the corridor between Thiruvananthapuram to Kasargo for Semi High-Speed Rail Corridor (Silver Line)

LOCOMOTIVE LEASING AND O&M OF RAIL ASSETS

At about 35 sites, RITES is involved in the operations and maintenance of rail assets which includes train operations and locomotive, wagons & track maintenance for clients such as power plants, coal mines, steel plants, container depots, ports etc. RITES is easing the rail operations for these clients at sidings and in-plant areas. RITES had a fleet of 69 locomotive for leasing which are placed at about 30 sites across India.

The Offerings

Leasing of RITES locomotives to PSU and Private clients;

Operation and maintenance of locomotives (diesel & electric) and wagons;

Rehabilitation and maintenance of railway tracks;

Train running and related operation in private yards and sidings;

Periodic overhaul/ major schedules of locomotives, wagons and diesel generator sets;

Railway system management, including the operations, workshops, depots and ancillary facilities;

Study for upgrade, rehabilitation of rail system;

Secured its highest value contract of about Rs. 360 crore for operation & maintenance of 20 locomotive of CONCOR for 10 years.

Secured contract for maintenance of 6 diesel locomotives and 6 electric WAG9 locomotives and wagons maintenance for NTPC Lara plant. First electric locomotives maintenance order for RITES.

Multi Loco leasing at Vishakhapatnam port

A comprehensive contract by NTPC-Darlipalli for O&M of the entire Railway MGR System.

R3Y and R6Y major schedule repair for 17 WDS6 locomotives by SAIL-Bhilai

Traffic Operations for 2 years and locomotive maintaince works for Tata Steels Meramadli plant

Operation & Maintenance for rolling stock at NTPC- Rihand

Leasing of 5 locomotives to SAIL plant at Rourkela

Secured wet leasing contracts for Dhamra Port ports for supply of 04 nos. WDS6 locomotives for 5 years

Leasing of 1 locomotive to Rashtriya Chemicals & Fertilizers ltd

Secured contract towards locomotive maintenance for a period of 5 years for Haldia Dock Complex (Kolkata Port Trust)

from private manufactures as well. It offers integrated and customized export packages to meet the transport requirements of clients having railways/metro operations on Meter, Cape, Standard and Broad Gauge.

We render technical consultancy for establishment and modernization of workshops, facility planning for rolling stock maintenance, training and technology transfer to overseas clients. Spare part support is also guaranteed after the delivery of the stock as per contract terms.

The Offerings

Supply and commissioning of locomotives and rolling stocks

Rehabilitation/ upgrade of rolling stock

Supply, installation, commissioning of machinery and plant for railway maintenance facilities

Supply of maintenance equipment for P-Way and other railway infrastructure

Supply and commencing of metro and urban transit rolling stocks

Consultancy/turnkey execution for upgrading rolling stock maintenance facilities

Leasing of locomotives

Technical assistance and feasibility study, detailed planning and techno-economic analysis for optimizing investment decisions in rolling stock maintenance

Technical consultancy in operation & maintenance of rolling stock, including training

On the job

During the year, the company has undertaken the following projects (select ones):

Select Projects Secured

Order of 10 AC chair car coaches from CFM, Mozambique

Order of 2 Diesel Hydraulic Locomotives from Mitsubishi Heavy Industries (Japan) for their Bangladesh operations.

Select Projects Executed

Supply of 1 AC-AC 3000 HP Diesel Electric Locomotive, 25 passenger coaches and 4 DEMU trainsets to CFM, Mozambique

Warranty for 160 coaches, 08 DEMU trainsets and 10 Diesel Electric Locomotives supplied to Sri Lanka

BUILDINGS, STATION DEVELOPMENT & MMLPs

Marrying its extensive experience in railway engineering, urban development and building projects, RITES has taken up assignments in areas for development of Multi Modal Logistic Parks (MMLP) for various PSU & Private clients, buildings for many educational institutes, PSUs and Government & its instrumentalities and railways station redevelopment to assist the Government in developing world-class infrastructure under its Amrit Bharat Station Scheme

The Offerings

Conceptualization, reconnaissance, feasibility studies, detailed project report;

Detailed Engineering, Project Planning, Scheduling and Controlling;

Contract Management, Construction Project Management;

Turnkey Construction;

Authority Engineer;

Quality Assurance, Inspection, Third Party Inspection and Technical audit;

Architecture - Programme and space planning, predesign, preparation of master plan/layout-plan and architectural designs;

HVAC, firefighting-cum-detection services, Acoustical Services and Landscaping

On the job

During the year, the company has undertaken the following projects (select ones):

Turnkey work for redevelopment of Kollam railway station

PMC for redevelopment for Somnath Railway Station

Consultancy services for MMLP at Madalgarh and Hakimpur for CONCOR

PMC services for Non-Transport areas for KIIFB, Kerala

TPS, Safety & QC of Ayodhya Development Authority

PMC for Re-development of Sepahijala Zoo

TPQA of ICT for Lucknow Smart City Ltd

Turnkey redevelopment of Ayodhya and Varanasi railway stations

Construction and Development of Textile Park at Shiggavi in Haveri, Karnataka

Construction of warehouse, temporary approach road, rail side warehouse at Kakinada, Krishnapatnam & Visakhapatnam

Construction of SFA at Bhubaneswar

Turnkey construction of IIM Shillong

PMC series for works of Department of Technical Education and Department College Education, Karnataka

ROPEWAYS

Promoting development of ropeways as an alternative mobility solution in difficult terrains to improve first as well as last-mile connectivity, besides improving tourism, RITES offers consultancy services covering all aspects of passenger and material ropeways, Funicular railway systems, and other industrial units.

The Offerings

Preparation of Techno-economic feasibility reports and detailed project reports

Project Management Consultancy for Passenger and Material Ropeways, Funicular railway systems

On the job

During the year, the company has undertaken the following projects (Select ones):

DPR for Ropeway between Langar and Sanjichhat, Katra

PMC for Ropeway at Shilong Peak, Meghalaya DPR for Ropeway at Chamba, Himachal Pradesh PORTS & WATER RESOURCES

RITES capabilities address all aspects of port planning and marine structural & civil engineering projects from berth to gate. We offer solutions for Inland Water Transport (IWT) and water resources engineering as well.

The Offerings

Ports and Harbour sector: Port Location Studies,

Port Planning and Harbour Engineering; Dredging and reclamation, Navigational systems; Port Connectivity (Rail/ Road/Waterway); Breakwaters and Model studies for port development, CRZ and EIA studies; Berthing structures; Material handling systems, port utilities, traffic studies, cost benefit analysis and project viability; Advisory services for privatisation, project management and independent engineer services.

Inland Water Transport (IWT): System planning, River engineering, Hydrographic surveys and investigations; River terminals, Training works and River management studies; Traffic and transport economics, financial analysis and EIA studies.

Water resources engineering sector: Reservoir capacity studies, Flood mitigation studies and Design of intake structures, dredging and shore disposal studies.

Water transmission & treatment: Total solutions from concept to commissioning of water supply systems, transmission, desalination and management of water projects by adopting state-of-the-art technologies providing clean and safe drinking water.

On the job

During the year, the company has undertaken the following projects:

Detailed Project Report (DPR) for development of Sadiya to Dhubri stretch of Brahmaputra River (NW-2) for enhancement of transportation of cargo

EIA & CRZ studies for Development of Machilipatnam Port for Andhra Pradesh Maritime Board

PMC services for Development of Greenfield Port at Machilipatnam, Andhra Pradesh

Independent Engineer Services for Development of Western Dock on BOT Basis to handle capsized vessels at Paradip Port

Preparation of Comprehensive Master Plan-2047 for Paradip Port

DPR for Operating the Cruise in Chambal River (Kota Barrage to Garadiya Mahadev) for UIT, Kota, Rajasthan

Hydrography survey and Feasibility for Navigation in River Chimtuipui, Mizoram

PMC Services for Development of IWT on R. Khawthlangtuipuri-Tulchawng in Lunglei district, Mizoram

QUALITY ASSURANCE

Having ISO: 17020 and ISA certifications, the Company provides Quality Assurance Services, in the areas of ultrasonic, magnetic, and dye-penetrant testing, radiography, high voltage testing, metrology, and metallurgical investigations. RITES laboratories in eastern and northern regions are accredited and conform to rigorous ISO/IEC17025 requirements by NABCB. The Company has recently secued its accreditation to ISO 17065:2012 to become the first Govt. Certification body for rolling stock.

The Offerings

Third Party Inspection (TPI) of material in India and abroad

Stage inspection/in-process inspection of material

Vendor capacity and capability assessment

Surveillance audit of vendors and products

Witnessing energy efficiency tests of equipment in certified test labs

Development of Quality Assurance Plans (QAPs) Quality Audit of process and systems Independent Safety Assessment (ISA) for rolling stock

Independent Agency for Monitoring and Evaluation (IAME) for Energy Efficiency Standard and Star Labelling Programme for consumer durables and other electrical equipment

Independent Review and Monitoring Agency (IRMA) for Infrastructure Project

Energy Auditing Services

On the Job

During the year, the company has attended more than 92000 inspection calls across the country and undertaken the following projects:

Standing authorized inspection agency for Indian Railways for rails, plant and machinery, wheel sets, wheel and axle, springs and other components of rolling stock in India as well as abroad

Quality Management inspection & Testing of coaches at LHB Division, ICF, Chennai and at MCF, Raebareli

Third Party Inspection for Jal Shakti, PHED, Kashmir; of ductile iron span pipes at Jindal Saw Ltd.; of wheels at RINL; of materials for Tata Projects Ltd.; of material/ equipment for Ashoka Buildcon Ltd., Nasik

Inspection of steel bridge girders for Gujarat Metro Rail Corp. Ltd. (GMRCL), Gandhinagar

Process Improvement and final inspection at Titagarh Wagon Ltd, Uttar Para & Titagarh

Inspection of Swan Neck Support for high-speed ship building of Engg. Co. Ltd., Bangladesh.

Third Party Inspection services for various infrastructure projects of Smart Cities such as Bareilly, Jodhpur, Ajmer, Chandigarh etc. and State Water & Sanitation Mission and Bridge Girders

TRANSACTION ADVISORY

Empanelled as Transaction advisor for asset monetisation of projects under InvIT and ToT mode with NHAI, Monetisation Consultant with Department of Public Asset Management and NITI Aayog, Company offers Transaction Advisory services for various Public Private Partnership (PPP) projects in the infrastructure sector.

The Offerings

Pre-feasibility and market studies

Project structuring and stakeholder consultation

PPP Transaction Advisory

Business plans, bankability studies, benchmarking, and strategic advisory

Asset Valuation Studies

Transaction Advisory for Asset Monetisation

Financial and Commercial Appraisal of projects

Policymaking and Regulatory advisory Bid process management

Consultancy for private investments in infrastructure projects

Financial, Tax and Legal due diligence

On the Job

During the year, the company has undertaken the following projects (Select ones):

Transaction Advisory series (TAS) for InvIT bundle 3 for NHAI

TAS for ToT bundle 10 for NHAI

TAS for selection of entity for procurement, operation and maintenance of rolling stock on PPP model for Bengaluru sub-urban rail project for Kride

TAS for development of Heliport in NOIDA on PPP basis

SUSTAINABILITY & URBAN ENGINEERING

Sustainability is part of our purpose and business practices. We are committed to minimizing the impact on the planet and supporting those who are engaged in environmental protection.

Also, our urban engineering capabilities include a broad array of Transportation Planning services and cover everything necessary to address mobility needs and to plan and effectively deliver smart transport systems.

The Offerings

National Clean Air Program (NCAP) implementation

Environment, Social and Governance (ESG)

Technical support services for solid waste management and Used Water Management

Source Apportionment Study

Net Zero (Carbon Neutral) Studies/Carbon Credits

Environment and Social Impact Assessment studies

Pollution Abatement studies

Lake Conservation programs

Extended producer responsibility for single-use plastics

Transport Planning and Policy at city, regional and national levels

Comprehensive Mobility Plan, Traffic & Transport studies and Transport Master Plan

Integrated Multi-Modal Mass Rapid Transport Planning

Bus system planning and design

Freight /Logistic Infrastructure Planning & Design

On the Job

During the year, the company has undertaken the following projects (Select ones):

High Occupancy Vehicle Lane Study on Budaiya Highway, Bahrain

MMI Hub at Hebbal Junction at Bangalore Intermodal Transit Hub Bangalore

Comprehensive Mobility Plan for Kolkata Metropolitan Area, Ayodhya, Jhansi, Saharanpur, and Chandigarh

Preparation of Piligrims Management Plan for Shri Ram Janambhoomi Teertha Kshetra in Ayodhya

Gramin Parivahn Sewa on PPP mode in Rajsthan

EIA Study for Rohtasgarh, Mundeshwari, Brahmayoni, Dungeshwari and Vanavar ropeways in Bihar; Haridwar ropeway in Uttarakhand; and for Pretshila ropeway

ESIA Study for Ahmedabad Metro Phase-II

EIA Study for dedicated Test track Project at Sambhar; developing Helipad at Noida; 19 Stations and CBTC in Mumbai Suburban Rail; for enhancement of transportation of cargo in Brahmaputra River

Technical Support Unit for SWM and UWM at MoUHA

DPR for development of Intermodal Station at Tirupati and Feasibility Report of Commercial Zone at Tirupati

Consultancy services for Bengaluru Solid Waste Management Limited

DPR for IMS Katra and Feasibility Report of Commercial Zone at IMS Katra

SIA Study for Agra Metro Rail Project City Logistics Plan for Agra and Ghaziabad

VIII. PEOPLE MANAGEMENT

Being a consulting organisation, RITES is constantly enhancing its knowledge and professional pool by regularly inducting skilled professionals. Its Human Resource Department is committed to achieving deliverables in terms of talent acquisition and retention, employee engagement, career progression, welfare, and development of the human capital.

Recruitment

To maintain its competitive advantage, RITES is determined to induct the best and talented workforce across the hierarchy — from fresh graduates, to engineer and management trainees, to deputationists, to retired officials (as experts and advisors) and to staff on third-party pay roll. The company has adopted best practices for providing equal opportunities and harmonious environment for advancement of SC, ST, OBC, Minorities and women employees. Its recruitment policies indicate the forward-looking approach with the emphasis on becoming Equal Opportunity Employer.

During the year, RITES inducted 53 employees (18 regular and 35 contractual) of which 34 belong to the SC/ST/ OBC/EWS category. Further, 2 PWD candidates were also inducted.

Career Progression

RITES promotion and transfer policy has been framed to provide adequate avenues of career advancement at all levels consistent with merit, suitability, performance and professional attainments of the employees. It is also commensurate with the business needs of the company to sustain in the competitive environment.

The promotion process was conducted for the 340 eligible candidates across disciplines, levels and regions and 234 employees (executive and non-executive staff) were promoted in FY 2022-23.

Based on the project requirements and to aid in learning and career progression as well as to comply with the job rotation policy for sensitive posts, around 500 employees have been transferred across verticals and regions during the year.

To make the workforce future ready and sustain a healthy pipeline of rich talent and expertise, RITES also continuously engages itself in succession planning.

Training & Development

Over the years, RITES workforce has been continually evolving due to several factors. An increasingly competitive business landscape, rising complexity, and the digital revolution have placed a premium on training and development. The company focuses on reskilling and upskilling its workforce through interventions such as training programmes, workshops, seminars, conferences and capacity-building sessions, both online and offline, covering the broad spectrum of technical, functional, behavioural, well-being as well as technological areas.

The company collaborates with various Indian Railway academies, Centralised Training Centres, premier business schools and other prestigious institutes/agencies to hone engineers into managers and leaders of tomorrow. This year, a total of 8185 training man-days have been clocked.

In view of knowledge management and knowledge sharing, the company focuses on In-house Capability Development. Under this initiative, regular knowledge-sharing sessions are organized by various industry experts, retired RITES officials and senior personnel of the organization.

Performance Management System

This year, the Performance Management System was revamped with the introduction of parameters aligning with vision of the organization. The performance appraisal process was carried out seamlessly through the e-PMS tool of Employee Self Service (ESS) and digitalization of processes such as submission of property transactions and no-due clearances resulted in efficacious delivery and reporting.

Digitalisation

The HR department has taken a leap forward to keep records in digitised format and implementing e-office for day-to-day operations. Also, the e-office system has been made bilingual to encourage the progressive use of Hindi in office functioning. More than 6,500 files, including 850 files for FY 2022-23, have been scanned and digitised up to March 2023.

HR functions such as Employee Records, Leave Records, Performance Management System, Annual Property Returns, Employee Engagement, Transfer and Postings have also been put in an e-format, thereby reducing paper use, and improving efficiency.

Employees have been given an opportunity to be part of decision-making on issues such as service conditions, resolving grievances and improving productivity by setting up the consultative council called CONCERT. The council comprises elected and nominated representatives of all sections of employees for continuous communication. Periodic meetings are being held to achieve these objectives. Also, to recognise exceptional performance, periodic awards and recognition (individual as well as group) are given to employees.

Employee Welfare

RITES has various schemes to improve the overall wellbeing of its employees. The primary objective is to enhance the quality of life of the RITES employees. Employees have been granted perks, allowances and facilities and nonmonetary benefits such as transportation, housing, leased accommodation, medical facility, health insurance, etc.

Apart from incorporating statutory benefits, Additional benefits have been provided such as personal healthcare (regular medical check-ups), reimbursement of OPD medical expenses (which includes prolonged treatment as well dental treatment) and availability of doctors on the RITES office campus. Buffer amount has been increased for both serving as well as retiring employees in Group Mediclaim Policy. Also, tie-ups with leading institutions have been garnered for cashless/discounted treatment.

A dedicated PRMS (Post Retirement Medical Scheme) cell and Abhaar committee have been formed to address the concerns of retired employees. To provide social security to family members of employees, apart from statutory measures, other insurance covers in the form of Group term plans and personal accident plans have been taken for employees. Superannuation benefits consisting of provident fund, gratuity, pension and post-retirement medical scheme are also provided.

The Fixed Allowances have been streamlined for all employees and the facility of Sodexo Card has also been implemented. Encouraging Fit India Movement and sports, various individual and team events are organised every year for the overall development of the employees.

Proper prevention and protection measures have been taken to deal with COVID-19. Employees have been encouraged and motivated for the vaccination, including booster dose, by arranging vaccination camps and reimbursing the amount for the same.

Women Empowerment

RITES has always believed in providing equal opportunities and harmonious environment for the advancement of women employees. It is committed to drive positive change at workplace and beyond. As a result, various initiatives are being taken to ensure fair participation and representation of women workforce at all forums. empowering them to take decisions and make a difference.

International Womens Day (8th March) is celebrated in RITES every year marking contributions of women in the social, economic, cultural and political fields. This year, while celebrating the occasion, the management emphasised the need of having gender diversity and its benefits towards fostering creativity and innovation in the companys growth.

RITES POSH Committee ensures providing safe and secure workplace for female employees. Employees are regularly sensitized on the issue of prevention of sexual harassment at workplace through trainings/awareness sessions. Through various initiatives, the committee reiterates the policy of ZERO tolerance to sexual harassment in any form.

Grievance Redressal

A centralised complaint cell has been functioning for registration, monitoring and disposal of grievances raised by staff, exemployees and public. The employees can raise grievances online through the Employee Self Service (ESS) portal. Any member of public or ex-employee of the company can also submit their complaint through the company website. Two standing committees have been constituted to further augment the grievance handling mechanism of serving and retired employees.

Contribution to Govt. Initiatives

The Company has always been proactively supporting initiatives of the Government of India such as Skill India, Swachh Bharat Mission, Startup India, Make in India, including MSMEs, Digital India, promotion of solar ecosystem by formulating its business or governance objectives in line with the government plans.

During the year, the company procured goods worth Rs 25.43 crore from Micro and Small Enterprises, including those belonging to SC/ST and women categories, against the total procurement of Rs 63.17 crore.

IX. RISKS & CONCERNS

In view of the increased globalisation and opening of crossborder businesses, there is a greater risk of competition from foreign companies in consultancy projects. The company also faces competition from the existing service providers and new entrants in both public and private sectors within India. Increased competition and aggressive bidding by competitors can impact its business operations and financial conditions.

The company may have a risk of incurring additional liabilities due to failure or subdued performance of its joint venture/ consortium partners in respect of assignments being executed in the joint venture/consortium manner. Also, the companys global operations are exposed to geopolitical and currency risks.

X. INTERNAL CONTROL SYSTEMS

The company has adequate internal control and audit systems to ensure efficient operations and compliance with applicable laws, rules, and regulations. It has structured policies and guidelines for the optimal delegation of authority for business facilitation. Internal audit is conducted by experienced professionals and external audit firms. The internal control and audit systems are also reviewed periodically. Corrective and preventive measures, whenever necessary, are taken for continuous improvement.

The internal control system has been further strengthened through:

Internal financial controls

The internal financial control of the company is analysed and audited for its relevance, effectiveness, and compliance under clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013. A report on the same, annexed to the Independent Auditors Report, suggests whether the company has, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls operate effectively, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control.

System Certification (ISO 9001:2015) & Other Accreditations

The Company has been certified to Quality Management System (QMS) as per ISO 9000 series of Standards since 1999. The system has been documented as per ISO 9001:2015 requirements. The ISO-based QMS defines the requirement of internal controls through manuals and procedures which are formulated internally. The QMS, involving regular internal audits to ensure the compliances with stipulated rules/regulations, forms an integral part of the internal control systems. RITES ISO 9001:2015 Certificate has been awarded by M/s. NVTQC under ANAB accreditation.

In addition, the Company is also accredited to ISO 17020:2012 Standard by NABCB, (A body under Quality Council of India) to ensure compatibility of its inspection services to international norms. The company has material testing laboratories in different regions which are accredited as per ISO 17025.

Risk management system

Company has a Risk Management Committee of the Board of Directors, which ensure that appropriate methodology, processes, and systems are in place to monitor and evaluate risks associated with the business of the company. A risk management system is in place to look into identification, prioritisation and mitigation of risks. It includes the financial risk management system since the companys activities are exposed to financial risks such as market risk, credit risk and liquidity risk. The financial risk management system foresees the unpredictability of financial markets and seeks to minimise potential adverse effects on the companys financial performance through the various risk mitigation strategies. Additional requirements related to the risk management in accordance with ISO9001: 2015 have also been implemented.

Treasury risk & liquidity management

The company has continued to optimise its surplus funds by adhering to efficient decision-making process of investing its surplus funds in deposits with banks, mutual funds and corporate bonds within the framework and guidelines of the Government bodies, Department of Public Enterprises (DPE), Companies Act and those approved by Board of Directors (BoD).

The execution of foreign projects also carries a currency fluctuation risk. The company regularly monitors exchange fluctuations to mitigate it. The company has a sound currency risk management policy that covers various aspects of currency risk management, benchmarking, hedging and risk appetite, permissible instruments, structure of the risk management committee, treasury group and reporting procedures.

For control and direction of operations pertaining to the currency risk management, the company has a committee and an external consultant. Actions taken are apprised to the management periodically.

The company has been affirmed IVR A1+, the highest shortterm rating for its non-fund based working capital limits by Infomerics Valuation and Rating Pvt. Ltd. This rating helps the company to get non-fund based facilities at more attractive terms.