KALPATARU PROJECTS INTERNATIONAL LIMITED

(Formerly Kalpataru Power Transmission Limited)

Synergized to
Accelerate
Sustainable
Growth

Integrated
Annual Report 2022-23
 NEW
IDEN
Over the past four decades, we
have established ourselves as
one of the most valuable brands
in the EPC sector. Following
the strategic amalgamation of
JMC Projects (India) Limited,
we have emerged as one of
India’s large listed diversified
engineering and construction Power Transmission
companies with an extensive & Distribution
global presence, along the six
high-growth businesses. Buildings & Factories
We are happy to share that
Water
Kalpataru Power Transmission
Ltd. Railways
now known as
Oil & Gas
Kalpataru Projects Urban Infra
International
Limited.
Our new identity truly
reflects our well-diversified
EPC business, global
presence and still imbibes
the values and legacy
associated with it.
The name of the company was changed from Kalpataru Power Transmission Limited to Kalpataru Projects International Limited effective May 22nd 2023. At various
places in the Integrated Annual Report 2022-23 we shall be addressing the entity as "the company", "KPIL". We shall also be referring "KPTL" at some places since
the statutory reports were approved prior to the name change.
JMC Projects (India) Ltd, since amalgamated shall herein after be referred as "JMC"
NTITY As we move forward
with renewed
optimism, our
new identity will
continue to unify
our visibility on
well-diversified
EPC businesses
with an increasing
portfolio of global
projects, and echo
our commitment to
create significant
value for all our
stakeholders.
Inside the
report
Corporate Overview Management Reports
4 - Synergized to Accelerate 113 - Management Discussion
Sustainable Growth and Analysis
6 - About Kalpataru Projects
International Limited You can also find this
Statutory Reports report online on:
8 - KPIL Journey – Key Milestones
10 - Geographic presence 142 - Board’s Report www.kalpatarupower.com
12 - Fostering Sustainable Growth 168 - Report on Corporate
through Collaboration Governance
14 - Chairman’s message 192 - Business Responsibility and
18 - Financial highlights Sustainability Report
20 - Our businesses
22 - Power transmission and Financial Statements
distribution (T&D) Scan above QR code to
26 - Water 232 - Standalone see this report online
28 - Buildings and Factories Financial Statements
30 - Railways 304 - Consolidated
32 - Urban Infrastructure Financial Statements
34 - Oil and Gas
36 - Biomass Investor Information
38 - Growth Drivers in Sync with
Global and Domestic Trends Market Capitalisation as at 31 March, 2023 H 8,692 Crores
42 - Board of Directors CIN L40100GJ1981PLC004281
46 - Experienced and Dynamic Key BSE Code 522287
Management
NSE Symbol KPIL
47 - Awards and Recognition
50 - Introduction to the IR Capitals Bloomberg Code KPIL:IN
52 - Our Value Creation Model AGM Date 17 July, 2023
54 - Our Approach Towards
Responsible Business
62 - Financial Capital
70 - Manufactured Capital
80 - Intellectual Capital
86 - Human Capital
96 - Social and Relationship Capital
106 - Natural Capital

Disclaimer: This document contains statements about expected future events and financials of Kalpataru Projects International Limited (Formerly Kalpataru Power
Transmission Limited), which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent
risks and uncertainties. There is a significant risk that the assumptions, predictions, and other forward-looking statements may not prove to be accurate Readers are
cautioned not to place undue reliance on forward-looking statements as several factors could cause assumptions, actual future results and events to differ materially
from those expressed in the forward- looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions,
qualifications and risk factors referred to in the Management Discussion and Analysis section of this Annual Report.
We are delighted to introduce Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report,
which aims to offer transparency and meaningful information to our
stakeholders as part of our synergy to accelerate sustainable growth. This
report presents a comprehensive overview of our financial and non-financial
achievements during the fiscal year 2022-23 (FY23).

Our Integrated Reports’ main goal is to explain our value generation process
to all stakeholders in a transparent manner. This report provides objective
and comparable information on financially and non-financially significant
matters The objective is to provide thorough and clear communication of our
dedication to value creation and advancing sustainability.

About The Report Report Content

Kalpataru Projects International Limited Reporting period FY2023 (April 1, 2022
(Formerly Kalpataru Power Transmission - March 31, 2023)
Limited), herein referred to as the
“organization” or company” or “we” or “us” Reporting cycle Annual
or “our,” is pleased to announce the release
of its Integrated Report for the fiscal year
2022-23. This report has been developed Reporting Frameworks
in accordance with the guidelines provided and Guidelines
by the International Integrated Framework,
prescribed by the International Integrated The Integrated Report of
Reporting Council (now known as the Value FY 2022-23 has been developed in
Reporting Foundation). line with the following :

• Global Reporting Initiative

Approach to reporting Standards, 2021
Integrated Reports typically aim at • Business Responsibility and
providing a comprehensive and holistic Sustainability Reporting (BRSR)
view of an organization’s performance based on the National Guidelines
and value creation, incorporating both for Responsible Business Conduct
financial and non-financial information. (NGRBC)
This can include information on a
company’s strategy, governance, • United Nations Sustainable
environmental and social impact, risks, Development Goals (UN SDGs)
and opportunities, and more.
• United Nations Global Compact
This Integrated Report aims to (UNGC)
transparently convey KPIL’s value
creation story to all its stakeholders. • Companies Act, 2013
This report discloses the Company’s • Indian Accounting Standards, the
objectives and matters that are Securities and Exchange Board
materially important for both financial of India (Listing Obligations
and non-financial matters, as well as the and Disclosure Requirements)
strategy and action plan for a sustainable Regulations, 2015
and inclusive development.

Queries regarding the Report

Your valuable input is critical to the
ongoing improvement of our reporting
journey. Please share your thoughts
with https://kalpatarupower.com/
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Synergized to Accelerate
Sustainable Growth
At Kalpataru Projects International Limited (Formerly
Kalpataru Power Transmission Limited), our ability
to stay ahead of the competition is grounded in
sustainable synergies realised by the Group. Our
aptitude for adopting new-age processes, extensive
reliance on advanced technology and efficient capital
allocation strategies make headroom for sustained
profitable growth.

We realise it is these synergies track record of superior

that empower us to overcome execution. It has not only
challenges and remain on allowed us to make better
track to chase our vision of decisions but enabled us
becoming one of the leading to stay focused on creating
EPC organisations in the long-term value for our
world. Moreover, the combined stakeholders including clients,
strength of KPIL and JMC lenders, shareholders as well
has now unlocked greater as communities.
opportunities to step up the
Above all, we understand
scale of our operations and
that business growth
undertake large and complex
cannot thrive in isolation.
projects and strengthen our
It provides us the impetus
presence in the international
to indulge in sustainable
arena.
practices, encompassing
Our engineering expertise the core pillars of ‘People,
forms the backbone of our Planet and Performance’ to
success and one of the consistently focus on issues
key drivers of accelerated that matters the most. We
growth. Along with an acute deeply acknowledge our
understanding of changing responsibility to lay the
market dynamics and foundation for a viable future
customer expectations, we with targeted interventions
have evolved our operating that are designed to benefit
methods to deliver process communities and broaden the
efficiencies and a continued way for sustainable growth.
4
Corporate Overview Management Reports Statutory Reports Financial Statements

5
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

About Kalpataru Projects

International Limited
Kalpataru Projects International Limited (Formerly Kalpataru Power
Transmission Limited), a part of the Kalpataru Group, is one of India’s
largest listed, diversified engineering and construction companies
engaged in Power Transmission & Distribution (T&D), Buildings &
Factories (B&F), Water Supply & Irrigation, Railways, Oil & Gas Pipelines
and Urban Infra (Flyovers, Metro Rail, Highways and Airports).

Since our inception in 1981, we continue more than 250 projects in over 30 At KPIL, we continue to prioritise the
to create sustainable value for diverse countries. Our presence in Europe key pillars of quality, environment and
stakeholders through our cutting- and South America has been further occupational health and safety to fulfil
edge Engineering, Procurement and strengthened by the acquisition of our commitment towards our 7,800+
Construction (EPC) solutions, making Linjemontage, Sweden and Fasttel, employees, clients as well as other
us one of the largest global players with Brazil. stakeholders.
footprint across 70 countries. Leveraging
the potential of well-diversified and Over the years, we have developed As of March 31st, 2023, our company
high-growth businesses, we have globally technologically fortified operations maintains a strong order book
executed orders worth over that boast the use of cutting-edge amounting to USD 5.6 billion,
USD 14 billion, for T&D, B&F, Water, processes and advanced design accompanied by consolidated revenue of
Railways, Urban infra and Oil & Gas and testing facilities, ensuring the USD 2 billion.
industries. Currently, we are executing strength and quality of our projects.

Business Ethics
Vision

Kalpataru Projects International Limited

(Formerly Kalpataru Power Transmission Teamwork
Limited) aspires to become the leading
Customer
global player across all its businesses and
centricity
is committed to achieving this goal by
upholding its core values.

Values Respect

At the heart of everything we do are the Pride

six KPIL values that guide our decisions
and behaviours. We are proud to live by
our values and expect the same from Quality
everyone who works with or for KPIL.

6
 Corporate Overview Management Reports Statutory Reports Financial Statements

70 $2 bn $5.6 bn
Global Footprint Revenue Order Book

7,800+ Experience of Over

AA/Stable
Employees
Worldwide
4 Decades Credit Rating

Well Diversified Operations Improving

& High Growth Backed by Latest ESG / Sustainability
Businesses Technology Ranking
Solutions

Data for financial year ended 31 March 2023

at consolidated level USD$ = H 82.2169

Group companies

Linjemontage I Fasttel Engenharia S.A. Shree Shubham

Grastorp AB Fasttel Engenharia S.A. was Logistics Limited
Incorporated in 1993, the Company incorporated in 1988 and is Shree Shubham Logistics Limited
offers power supply solutions and headquartered in Curitiba, Brazil. (SSL) is a major player in agri-logistics,
services for electricity networks The Company’s primary business focusing on the post-harvest value
up to 400 kV. It operates in three areas include the EPC of substations, chain for agri-commodities. Its
core business areas: substations, transmission lines and power integrated business model includes
transmission and local networks and distribution services. Fasttel has a diverse activities such as warehousing,
electricity network services. Kalpataru presence in more than 20 states across procurement, primary processing,
Power Transmission Sweden AB Brazil, having built over 2,000 km of trading, collateral management,
(KPTS), a wholly-owned subsidiary transmission line and 50 substations funding facilitation, testing,
of Kalpataru Projects International for various voltage ranges up to 750 certification and pest management.
Limited (Formerly Kalpataru Power kV. KPIL holds a 51% stake in Fasttel SSL operates warehouses through
Transmission Limited) holds 100% Engenharia S.A. through its wholly- a hub-and-spoke model across
stake in the Company, which has a owned subsidiary, Kalpataru Power Do Rajasthan, Gujarat, Madhya Pradesh
presence in Sweden and Norway. Brasil Participacoes Ltda. and Maharashtra.

7
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

KPIL Journey –
Key Milestones
2005
Acquisition of
controlling stake
1981-1987 2004 in JMC Projects
(India) Limited
Acquired H T
Power Structure Diversification
into Oil & Gas Completion of
Pvt. Ltd. at over 900 kms of
Gandhinagar Pipelines Projects
400 KV D/C for

Breakthrough 1996-1999 Completion of Rihand project

of Powergrid,
Project- 400 third overseas
132 KV project ahead of
kV S/C Indore - Gained the contractual
Asoj line project for Zesco,
foothold and Zambia ahead schedule
for Powergrid recognition from of contractual
Power Utilities schedule in a Commissioning
and Overseas record period of 8 of Export
1991-1995 Turnkey months Oriented Unit
Contractors (EOU) at
such as ABB, Domestic Gandhinagar
Awarded first
Sumitomo,
500 kV contract
Cegelec, Downer 2001-2003 turnkey projects
exceeding H 160
Becomes a etc Crores, including
First International those from
Publicly listed
First Milestone EPC projects RRVPNL and
company
of H 100 Crores in Algeria WBSEB, followed
Awarded revenue achieved and Turkey by over 20
first 800 kV - Received 1st projects valued
Export overseas Turnkey
contract - above
Excellence Award Contract – 380
Physical expense H 1500 Crores
by Government kV in Turkey
contract for from Powergrid
of India
Towers
Setup of Biomass
R&D centre Plant of 7.8
(Tower Testing) MW capacity
commissioned at Padampur,
at Gandhinagar, Rajasthan
capable of
testing towers
upto 800 kV

8
 Corporate Overview Management Reports Statutory Reports Financial Statements

2011-2013
2008-2009 2022-2023
Entered into 3
Production new countries for Awarded the contract
capacity 2010 Turnkey Contracts 2015-2016 of Integrated Airport
increased – CIS (Ukraine), Development
to 108000 Diversification Democratic of Maldives
Diversification
MTS p.a at into Railway Republic of the Hanimaadhoo
into Water
Gandhinagar, Business Congo & Tanzania International Airport
Business
one of the from the Government
Commenced with
largest tower BOOT/ PPP Entry into West of Maldives
Domestic sub-
fabrication business started Africa, Senegal –
station business
2007 facilities at with Jhajjar EXIM funded First international
single location asset The first intra 2018 social housing project
at Maldives
Acquisition of in the World. state transmission All four road
Shree Shubham Largest EPC DBFOT* BOOT projects Global footprint
Revenues contract of USD (Development of operational, Order book size of
Logistics in 50 +
crossed H 1,000 250 million a 400 kV/220 and large BOOT over USD 5.6 billion
countries
Forayed Crores awarded in kV transmission Wins in 2015 (as on 31st March,
into the Civil Kuwait system for the and 2017 – Large Railways 2023)
Infrastructure evacuation of Alipurduar and order in
Tower electricity from Announced and
business Kohima Bangladesh;
production the 2 x 660 MW completed strategic
Started
Ranked as the capacity thermal power amalgamation of JMC
manufacturing
with KPIL
fastest growing increased by plant at Jhajjar, Railway 2019-2021
Mid-Cap 24,000 MT’s to Haryana) project. structures
132,000 MT’s The Company
company of India, Acquired 85%
Set up green- selected as one
Business Today equity stake in
First tower order field, state-of- of the preferred
the-art tower Linjemontoge I proponents to
Inauguration of received by USA
manufacturing Grastrorp AB deliver the Humelink
Kalpa Vriksha
plant at Raipur, Transmission Project
Learning Centre Landmark T&D
Chhattisgarh in Australia
at Gandhinagar Project Win of
having total
production capacity H 3,200 Crores Global footprint in 70
of 55,000 Mts in Chile countries
Acquired Name changed to
Controlling Kalpataru Projects
Stake in Fasttel International Limited
Brazil (KPIL)

S I N TE R N
CT AT
JE

LPAT U PRO

IO
NAL
AR

L I MI T
ED
KA

*DBFOT: Design, Build, Finance, Operate and Transfer

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Geographic
presence

Canada

Global Footprint in
USA
70 Countries;
Live projects in
30+ countries
Mauritania
Mexico
Senegal
Guinea
Sierra Leone
Panama Ivory Coast
International
Colombia Suriname
Order Book
of ~J 18,400 Crores
(~US$ 2.3 Bn) Peru
Brazil
a l
azil
Bolivia
Fasttel

Established Chile
Local presence
in major
EPC- markets

America

This map is a generalised illustration only for the ease of the reader to understand the locations, and it is not intended to
be used for reference purposes. The representation of political boundaries and the names of geographical features/states
10
Countries
do not necessarily reflect the actual position. The Company or any of its directors, officers or employees, cannot be held
responsible for any misuse or misinterpretation of any information or design thereof. The Company does not warrant or
represent any kind of connection to its accuracy or completeness.

10
 Corporate Overview Management Reports Statutory Reports Financial Statements

Linje Montage

Sweden

Norway
N

Poland
Ukraine
U
Mongolia
Armenia
Turkmenistan
Turkey
Tajikistan
Syria
ria Iraq
IIra
raq
raq
q
Afghanistan Nepal
Tunisia
T Kuwait
Qatar
Q a Bhutan
Algeria
Egypt
E
Egy
gyp
gyp UAE
U Indiaa Bangladesh
Laos Thailand
Malii Niger Saudi Arabia
Saud
Sau
Myanmar Philippines
Djibouti
N
Nigeria Cambodia
Ethiopia
E Vietnam
Ghana
Gh
Gh Cameroon
C on
n Malaysia
Uganda
Kenya
Rwanda Indonesia
Congo
Con
Cong
ong Sri Lanka
Tanzaniaa
T
Burundi
Seychelles Maldives
Zambia Malawi
M

Botswanaa Madagascar Australia

Eswatini Mozambique
South
S Africa

Africa Middle East Asia Pacific Europe

29 Countries
9
Countries
18
Countries
4
Countries

11
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Fostering Sustainable Growth

through Collaboration
We believe great businesses disrupt by changing the existing paradigm.
The recent amalgamation of JMC Projects (India) Limited (JMC) with our
Company has led to the creation of India’s one of the largest, listed and
diversified engineering and construction company.

The strategic culmination of both a diverse array of infrastructure and

entities keeps us well on track to explore engineering projects spanning power
opportunities in new geographies, transmission and distribution, buildings
further strengthen our presence across and factories, water, railways, oil and
the world and set higher standards of gas and urban infrastructure. The
operational excellence and timely project engineering expertise of the combined
execution. entity is expected to bring to the fore
innovative solutions that will play an
The synergies attained through the integral role in building a future-ready
merger will empower us to undertake organisation.

12
 Corporate Overview Management Reports Statutory Reports Financial Statements

Benefits of synergy

Strategic Productivity
Build a stronger portfolio to bid Cross-functional collaboration
for complex projects and deliver to enhance productivity
sustainable growth opportunities
Strengthening of internal
Capital allocation to high RoCE controls, compliances and
businesses to accomplish our governance structure
vision of being a leading EPC
organisation Integration of Banking, IT &
HR initiatives With India’s robust capex cycle and
Optimised management the ongoing global energy transition,
bandwidth to offer new avenues the timing of the merger is ideal.
of growth
With size, scale,
and productivity
benefits, the
merger is
expected to
increase the
Operations and cost of financing combined entity’s
Synchronised business Cost optimisation, primarily
footprint across
development to scale driven by centralised all growth areas.
international presence in procurement, efficient
The stronger balance sheet of the
segments beyond T&D and road mobilisation of resources
combined entity will act as an enabler
projects
Potential cost savings due to the for future growth, locally and globally.
Adoption of automation, stronger balance sheet of the With robust execution capabilities,
advanced technology and best combined entity strong financial profile and diversified
practices business mix of the combined entity,
we look forward to an exciting phase
of sustained growth.

13
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Chairman’s
message

The strategic
amalgamation of JMC
with KPIL has resulted
in the creation of one
of India’s largest listed
diversified Engineering
and Construction
companies. Today, KPIL
is amongst India’s top
listed EPC companies
with footprint across 70
countries.

Chairman
Mofatraj P. Munot

Dear Shareholders,
As we embark on our 29th year of
value creation for our stakeholders, I
am pleased to showcase the progress
and growth that your organisation
has achieved.

The financial year 2022-23 was marred

by worldwide economic uncertainty. The
war in Ukraine triggered a geopolitical
crisis that exacted a heavy toll on global
economic activity. It exacerbated the
global supply chain disruptions, further
increasing an already elevated inflation
rate. Soaring commodity and logistic
costs as well as currency fluctuations
during the year somewhat impacted our
execution and financial performance.

Nevertheless, we delivered strong

consolidated revenue growth of 11%,

14
 Corporate Overview Management Reports Statutory Reports Financial Statements

driven by robust execution across both should result in superior value creation sustainable growth. The consolidated net
domestic and international projects. for the stakeholders. debt stood at H 2,581 Crores. Through
Despite consistent cost pressures and improved working capital management,
an unpredictable external environment, We have gone ahead with a new name we successfully reduced working capital
we were able to deliver industry-leading for the merged entity — 'Kalpataru days to below 100 days in FY23, resulting
EBITDA margins in excess of 9%. Projects International Limited'. I believe in a net working capital to sales ratio of
The performance clearly underpins the the new name truly reflects our well- 27%. With a strong balance sheet and
strength of our resilient business model diversified EPC business, global presence a positive outlook for future growth, the
which can withhold macro volatility and still imbibes the values and legacy Board of Directors proposed a dividend
and uncertainty. associated with it. of H7 per share. Over the last decade,
an average dividend payout ratio was
For us, our people and their well-being approximately 18%, reflecting the
Impressive performance
are one of our top priorities. We made strong commitment to provide returns
significant efforts this year by focusing Despite the challenges pertaining to the to the shareholders.
on aspects such as work-life balance, volatility in commodity prices and freight
training, global learning opportunities, rates, elevated inflation, and high people Talking about our individual businesses,
and retention programmes. Whilst high attrition, the financial year 2022-23 saw in the T&D business, the revenue
attrition has emerged as a common a record order inflow of H 25,241 Crores, remained subdued, largely on account
phenomenon in the EPC industry and which resulted in an all-time high order of a lower backlog at the start of
in business in general, we continue book of close to H 45,918 Crores. Your the financial year. However, with the
to actively engage with employees, Company was able to secure several improved tendering activity and business
understanding their aspirations, marquee orders and large order wins development efforts, we have secured
needs, and concerns. We have acted in international T&D, B&F and Water projects worth over H 10,000 Crores.
and modified policies, practices and businesses. Additionally, there is an L1 We have a strong tender pipeline of
development discussions based on position of around H 4,000 Crores. over H 50,000 Crores in next 20-24
continuous feedback. months in India. In the International
Your Company has delivered Standalone market, we have robust visibility with a
top-line growth of 16% in FY23. The tender pipleline of over USD 4 billion
Synergized to accelerate growth has been led by robust execution especially in focused markets in Africa,
The strategic amalgamation of JMC in B&F, Water and Urban Infra business Latin America, Asia and Middle East. I
Projects (India) Ltd (JMC) with KPIL has and a healthy order book in the domestic am pleased to share that your Company
resulted in the creation of one of India’s and international businesses. Focus is selected as a preferred EPC partner
largest listed diversified Engineering on profitable projects, productivity by a major power utility in Australia
and Construction companies. Today, improvement and project closures for executing a large-size EPC project
KPIL is amongst India’s top listed EPC resulted in core EBITDA of H1,278 for renewable integration. This is a
companies with footprint across Crores implying 18% yoy growth and significant achievement for us and
70 countries. an industry-leading EBITDA margin of demonstrates our capability to manage
8.9%. and execute such large-size complex
The merged entity will be able to projects at the global level. Today we are
bid for large-size and more complex The Company achieved a consolidated
proud to spread our wings from Chile in
projects involving the combined revenue growth of 11% to reach H16,361
the far west to Australia in the far east.
expertise. The strategic merger will Crores, with an EBITDA margin of 9.1%.
strengthen your Company’s position The profit after tax amounted to H435 The B&F business achieved a remarkable
in high-growth and better margin Crores, representing a margin of 2.7%. 25% revenue growth, driven by strong
markets, accelerate top-line growth, Standalone net debt increased by execution and a robust order book. In
strengthen operating EBITDA margins, H 625 Crores to reach H 1,680 Crores, FY23, our order intake reached
and improve earnings stability given mainly due to a Capex of over H500 H 3,755 Crores, contributing to an order
the diversified business model, which Crores for executing the current order book of H8,547 Crores. With a focus
book and investing in capabilities for on enhancing our market position, we

15
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Chairman’s
message

We are now undertaking specialised Transforming with the eyes

projects such as irrigation and river of tomorrow
linking projects to address various water
The financial year management needs of today. The water We are optimistic as we enter the
new financial year with a strong order
2022-23 saw a record division has a skilled execution team,
book and a robust tender pipeline
with more than 90% of technical staff
order inflow of H 25,241 having deep expertise and knowledge in across our key markets. Both domestic
Crores, which resulted the relevant industry. and international markets present
significant growth opportunities
in an all-time high In the Railways business, revenue grew for all our businesses, which is a
order book of close by 4% YoY to reach H1,652 Crores. We remarkable shift. The government and
continue to adopt a prudent approach private sector investments in water,
to H 45,918 Crores. and remain selective in bidding given infrastructure, airports, buildings,
Additionally, there is an the higher competitive intensity. manufacturing, and railways are
During FY23, we have secured orders driving remarkable growth and capital
L1 position of around worth H 1,557 Crores and the addition expenditure. With agility and a focus
H 4,000 Crores. of two large size metro electrification on consistent and profitable growth, we
projects. We are increasingly looking will continue to manage our business
to strengthen our business in areas while prioritising the resolution of non-
secured repeat orders from our valued like metro electrification, Signalling & core assets.
existing clients and expanded our client Telecommunications (S&T), Regional
Rapid Transit System (RRTS) and Our projections for FY24 include
base to include new institutional clients.
High-Speed Rail. standalone revenue growth exceeding
Our strategic efforts are directed
30%, achieving the PBT margin in the
towards strengthening our presence in
The Oil & Gas business reported range of 4.5-5%, ensuring the finance
sectors such as data centres, institutional
revenue of H985 Crores for FY23. cost as a percentage of sales to be in
buildings, and processing plants. By
Business visibility remains good in India the range of 2%, and achieve a ROCE
consistently scaling up our expansion
and international markets. We have of 18-20%. With favorable tender
plans and capacity building in the B&F
received qualifications to bid in seven activity and a consolidated target of
and international civil infrastructure
countries and we expect to expand our H 26,000 Crores or more in order
sectors, we aim to gain a significant
international reach in the Oil & Gas book for FY24, we have a substantial
competitive advantage in key markets
business. growth runway. However, we remain
and businesses for the future.
vigilant regarding uncertainties such
The urban infra business grew by 23% as geopolitics, inflation, commodity,
The Water business continues to be a
YoY to H403 Crores on the back of and currency volatility. To navigate
solid growth trajectory as revenue grew
the execution on new projects secured these challenges, we are strengthening
54% YoY to reach H2,622 Crores in
during FY23. We are improving our our risk management, diversifying
FY23. We have secured orders worth
capabilities to secure projects in metro our business mix, and enhancing our
H 7,553 Crores and have an order book
rail, elevated roads, public spaces, execution capabilities.
of H 12,476 Crores in FY23. We are
airports and so on. We have also
consistently investing in strengthening
successfully commenced the execution The merger-related synergies and our
our capabilities to improve our
of the Maldives integrated airport other strategic interventions will aid
competitive position to execute large-size
development project. In the coming in 2025 vision of achieving a revenue
projects. Our presence covers the entire
year, we expect our urban infrastructure of USD$3+ billion an order book of
value chain of the water sector, including
business to meaningfully contribute to US$6+ billion, with an ROCE of 20%+.
water intake, treatment, storage, supply,
our growth.
distribution, operation, and maintenance.

16
 Corporate Overview Management Reports Statutory Reports Financial Statements

The Company has doubled its global create a dense green forest, we have
reach to over 70 countries in the past implemented the Miyawaki technique,
five years, with significant growth seen planting 9000 saplings at a project
in developed economies. We focused on site in Lalitpur. Our commitment to The merger-related
expanding into newer geographies to reducing carbon footprint and practicing synergies and our
drive profitable growth, and our strategy sustainability aligns with our journey
has been successful. In the long run, our towards achieving Net Zero carbon. Our other strategic
focus will be on further augmenting our Company’s governance principles revolve interventions will aid
engineering capability and expanding around transparency, accountability,
to newer geographies and high-margin responsibility, compliance, ethics, and
in realising our 2025
segments so that our overall profitability trust. Upholding these values, which vision of achieving a
remains robust. have been our hallmark for over four
decades, is our priority. Our vision is
revenue of US$3+
Tech for a better future to become the world’s leading EPC billion an order book
We foster a technology-first approach
organization, delivering sustainable
solutions through continuous innovation.
of US$6+ billion, an
throughout our organization, Through our initiatives in healthcare, ROCE of 20%+.
transcending levels and functions. education, animal welfare, environment,
This culture enables us to achieve and community development, we
our strategic objectives in operational continue to positively impact the lives
excellence and sustainability. By investing of hundreds of thousands, aiming for
I would like to express my gratitude to
in advanced IT infrastructure and digital sustainable and inclusive development.
all our stakeholders for their unwavering
tools, we have reduced project delivery
confidence and conviction. I am thankful
timeframes, enhanced responsiveness to
urgent events, and maintained our focus
Our Kalpataru parivar to the Board for their strong oversight
and continuous mentoring. We are
on value creation. I strongly believe that our people are
committed to continuing our exciting
our biggest asset — our invaluable pillar
journey of growth with the support of
of strength. Our employees embrace
Growing sustainably, thriving our employees, shareholders, bankers
the Company values and contribute as
responsibly much to the fabric of our organisation
and governments. We will continue to be
an active contributor to building a better
Since its inception, KPIL has believed as they do to our success. Our ‘people-
world, and explore new opportunities
that a corporation has a larger role first’ culture recognises and celebrates
that shall contribute to the growth of our
to play beyond generating wealth. It performance across the board.
business and our nation.
serves as an integral part of the social
system, addressing environmental I take this opportunity to thank our
Regards,
and societal needs. As one of the few Kalpataru Parivar for their unstinted
EPC companies in India, we generate loyalty and dedication. I look forward to
your continued support in our journey Mofatraj P. Munot
approximately 15 MW of green power
towards reaching higher levels of Chairman
and extensively utilise biofuel, solar, and
wind energy in our daily operations. To excellence.

17
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Financial highlights
Standalone1 Consolidated

Revenue Core EBITDA Revenue

(in H Crores) (in H Crores) (in H Crores)
10,358

11,359

1,122
11,615

12,949
12,407

1,080
14,337

1,279

1,145

1,278*

10,841

12,676

14,777

16,361
2020-21

2020-21
2022-23

2022-23

2020-21

2022-23
2019-20

2019-20

2019-20
2018-19

2018-19

2018-19
2021-22

2021-22

2021-22
PBT PAT PAT
(in H Crores) (in H Crores) (in H Crores)
806

775

925

500

739

537

534

678

350

532

487

390

662

535

435
2020-21

2020-21

2020-21
2022-23

2022-23

2022-23
2019-20

2019-20

2019-20
2018-19

2018-19

2018-19
2021-22

2021-22

2021-22

Standalone Order Book Consolidated Order Book

(in H Crores) (in H Crores)
22,881

22,224

26,747

29,323

43,769

24,030

22,834

27,900

32,761

45,918
2020-21

2022-23

2022-23
2019-20
2019-20

2020-21
2018-19

2021-22

2021-22
2018-19

Note: *The amount of H109 Crores shown as an exceptional item with respect of an award obtained by an erst while power transmission subsidiary and is contractually
receivable by the Company has been considered in EBITDA
1
Consequent to Amalgamation of JMC Projects (India) Limited with the Company, previous years' numbers have been restated to make it comparable

18
 Corporate Overview Management Reports Statutory Reports Financial Statements

(in H Crore) USD Mn1

Particulars 2018-19# 2019-20# 2020-21# 2021-22# 2022-23# 2022-23#

Standalone #

Production in MTs* 168,634 173,094 156,214 148,253 122,594

Gross Revenue 10,358 11,615 11,359 12,407 14,337 1,744
Sales Growth (%) 21.4% 12.1% -2.2% 9.2% 15.6% 15.6%
International Revenue 2,834 2,938 2,903 2,911 3,790 461
Total Expenditure (excluding depreciation and finance cost and Expected 9,253 10,346 10,215 11,327 13,167 1,602
credit loss provision for loans and advances given to joint venture / others)
Operating Profit (Profit before tax, depreciation, Interest, other income 1,122 1,303 1,313 1,144 1,224 149
and Expected credit loss provision for loans and advances given to joint
venture / others and including exceptional items)
Other Income 69 78 91 98 112 14
Finance Cost 214 291 222 244 294 36
Profit before Tax(PBT) after exceptional items 806 775 925 500 739 90
Depreciation 164 228 257 272 295 36
Profit before Interest & Tax (PBIT) after exceptional items 1,020 1,066 1,147 743 1,033 126
Profit before Tax & before exceptional items 806 751 757 436 685 83
Exceptional items- gain 0 24 168 64 54 7
Provision for Taxation (incl. Deferred Tax) 269 240 247 149 207 25
Profit after Tax (PAT) 537 534 678 350 532 65
Other Comprehensive Income (net of tax) 25 -41 5 36 -47 -6
Equity Share Capital 31 31 30 30 32 4
Net Worth 3,772 4,199 4,574 4,937 5,320 647
Long-Term Borrowings (excluding interest free loans from entities other 981 1,063 1,005 1,021 1,065 130
than bank and financial institutions)
Short-Term Borrowings 422 1,109 884 1,145 1,636 199
Total Borrowings (excluding interest free loans from entities other than 1,403 2,173 1,890 2,166 2,701 328
bank and financial institutions)
Borrowings (Net of Cash and Bank balances) 1,128 1,705 1,288 1,054 1,680 204
Net Debt to Equity Ratio 0.28:1 0.38:1 0.28:1 0.21:1 0.32:1 0.32:1
Return on Equity (%) 14.2% 12.7% 14.8% 7.1% 10.0% 10.0%
Return on Capital Employed (%)** 21.7% 19.7% 19.5% 12.5% 15.9% 15.9%
Book Value per Equity Share (H/USD) 232.2 258.5 281.6 303.9 327.5 4.0
Earnings per Equity Share (H/USD) 33.0 32.9 41.8 21.6 32.7 0.4
Operating Profit (%) 10.8 11.2 11.6 9.2 8.5 8.5
Profit before Tax (%) 7.8 6.7 8.1 4.0 5.2 5.2
Profit after Tax (%) 5.2 4.6 6.0 2.8 3.7 3.7
Order Book at year end 22,881 22,224 26,747 29,323 43,769 5,324
Consolidated
Gross Revenue 10,841 12,676 12,949 14,777 16,361 1,990
Profit before Interest & Tax (PBIT) (Normal) 1,162 1,169 1,381 1,093 1,108 135
Profit after Tax (PAT) 487 390 662 535 435 53
Other Comprehensive Income (net of tax) 8 -34 44 34 -42 -5
Earnings per Equity Share (H/USD) 30 25 44 36 29 0
Consolidated Order Book at year end 24,030 22,834 27,900 32,761 45,918 5,585
Net Worth (Excl rev reserve, attributable to owners) 3,120 3,358 3,739 4,279 4,721 574
Return on Equity (%) 15.6% 11.6% 17.9% 12.6% 9.2% 9.2%
Borrowings (Net of Cash and Bank balances) 3,281 3,536 2,304 1,902 2,581 314
Return on Capital Employed (%)** 19.2% 17.6% 21.5% 17.9% 16.4% 16.4%

#
Consequent to Amalgamation of JMC Projects (India) Limited with the Company, previous years' numbers have been restated to make it comparable
*
The quantity includes production, on jobwork basis and purchased from/got processed from third parties
**
Based on average capital employed
1
USD$ = H 82.2169

19
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Our businesses

20
 Corporate Overview Management Reports Statutory Reports Financial Statements

Transmission & Distribution

36% Design Testing Manufacturing Fabrication Erection Substation

B & F – Building & Factories

Residential Institutional Commercial Data Factories

19% building building building centre

Water

Water Storage & Irrigation Intake & House water

27% supply distribution treatment connection
J45,918 cr
Order Book
Oil & Gas

Process Cross Country Processing Refineries &

4% Pipeline Pipeline facilities Fertilizers Plants

Railways

Track Overhead Signaling & Bridges Stations

8% Laying Electrification Telecom

Urban Infra

Roads & Flyovers Metro Rails Stations Airports

6% Highways

21
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Power Transmission and Distribution (T&D)

Overview
We have earned a reputation as a provides us with end-to-end capabilities towers, KPIL has two state-of-the-art
leading integrated solution provider for to deliver large-scale turnkey projects for plants in India with an installed capacity
transmission lines and substations in both transmission and distribution. of 2,40,000 MT, equipped with in-house
domestic and international markets. With galvanising and painting facilities. KPIL
the substantial capability for projects up At KPIL, we have deep expertise in has effectively expanded its high voltage
to 1,200 kV, we continue to demonstrate executing high-voltage direct current substation business and established a
significant expertise in this domain. Our (HVDC) transmission system projects and strong presence in both Air Insulated
comprehensive range of services covering have a proven record of flawless execution Substation (AIS) and Gas Insulated
the entire project lifecycle, from design and strong partnerships with marquee Substation (GIS) markets, both within
and engineering to manufacturing, clients across the globe. As one of the their home country and internationally.
testing, installation and commissioning, leading manufacturers of transmission

30+ countries 30,000+ KM To ensure quality and efficiency, we

manage our entire manufacturing
Ongoing transmission and Transmission contracts completed process and inventory through
substation projects across the globe (Since inception) automated ERP and barcoding solutions.
Additionally, we offer our customers

2,40,000 metric 100+ diverse products, including Indian and

international material grades, backed by
tonnes annually In-house design engineers our in-house quality and material testing
Tower structure fabrication capacity laboratories.
Tested over

524 towers
for domestics and international clients
(Since inception)

22
 Corporate Overview Management Reports Statutory Reports Financial Statements

Landmark Projects

Transmission Lines

750 kV S/C 353 Km 500 kV HVDC 200 Km 500 kV 256 Km

Transmission Line in Transmission Line from Tajikistan Transmission Line in
Ukraine Border to Afghanistan Egypt

400 kV S/C 112 Km 500 kV D/C 167 Km 765 kV D/C 190 Km

Transmission Line in Transmission Line in Transmission Line in
South Africa Thailand Uttar Pradesh, India

s/c: single circuit / HVDC: high-voltage direct current / D/C: double circuit

Substation

220/132 kV 225/30 kV 220/30 kV

Substation in Substation in Substation in
Botswana Senegal Burundi

765 kV
500 kV 400/130 kV
Air-insulated substation (AIS)

400 kV
Gas insulated substation (GIS)
Upto
Substation works in Substation works in
Substation projects in Gujarat Brazil Sweden

FY23 Key Statistics

Transmission & Distribution (Domestic) Transmission & Distribution (International)

1,982 979
Towers erected Towers erected in
in 2022-23 (In Nos.) 2022-23 (Nos.)

1,746 CKM 663 CKM

Stringing done in 2022-23 Stringing done in 2022-23
(Circuit Kms) (Circuit Kms.)

23
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Key Projects

Domestic project

400 kV DC transmission lines for Karnataka Power

Transmission Corporation (Kalaburagi, Karnataka)

Project highlights

With this project, we achieved great results with its efficient and innovative approach. It effectively implemented a
modified stub setting method, improving productivity and minimising delays. Despite challenging weather conditions,
including heavy monsoons and high rainfall, work proceeded without interruptions. We actively involved the local
community, gaining their support and cooperation. Significant progress was made in constructing transmission lines,
with foundation and tower testing completed quickly. Tower supply and erection were finished ahead of schedule, and
stringing activities began as planned.

24
 Corporate Overview Management Reports Statutory Reports Financial Statements

International project

Project

298 km
Construction of two 225kV single circuit transmission Approximate length
lines in Cameroon of line

986
Project highlights

Through this project, we effectively addressed the difficulties posed by a Number of

prolonged monsoon season, working within a narrow four-month dry period. Towers
We implemented an efficient pre-cast foundation method for the transmission

2
line to ensure construction quality. It showcased remarkable logistical expertise
by safely navigating challenging hilly terrain and delivering heavy equipment,
including three power transformers, to a hilltop 1,700 meters above sea level.
New substation
This project received recognition from the Honourable Minister of Water
construction
Resources and Energy in Cameroon for its achievements.

25
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Water
Overview
We provide best in class EPC solutions for
a wide range of water-related projects 2,20,000+ 15+ million beneficiaries
across India, Sri Lanka and Maldives. Water meter connections Lives impacted
It benefits more than 15 million people (Since inception) (Since inception)
worldwide and provides house service

19,000+ kms
connections to more than 7.5 lakh homes.

We undertake projects related

to supply and distribution, waste Water pipe network laid
management, irrigation and operation (Since inception)
and maintenance. Our EPC solutions
cover the entire spectrum of water Our extensive reach spans across India and we remain steadfast in our commitment
infrastructure development, from to deliver sustainable and innovative solutions for water management, showcasing our
project design to implementation and unwavering focus on environmental conservation and resource management.
management. We are consistently
investing in strengthening our capabilities
in order to improve our competitive
position to execute large size projects.

Strong Project
Management Capability with

In-house
Design, Engineeting execution
and O&M teams

26
 Corporate Overview Management Reports Statutory Reports Financial Statements

Landmark Projects

Multi-Villages 30.50 MLD River Linking Project | 360 MLD of Construction of water and sewerage
(millions of liter per day) capacity water | 1300+ mm Dia MS Pipe | facilities including RTP and Admin
surface water supply scheme, Gravity main | Length – 65+ kms Buildings across 34 islands in the
Bhagalpur, Total length – 792 kms Republic of Maldives

30 MLD at Khargone & 50 MLD 24 MLD Lahchura Water Supply Narmada – Jhabua – Petalawad –
at Burhanpur, Urban Water Supply Scheme in Uttar Pradesh under Jal Thandala – Sardarpur Irrigation
Schemes, Madhya Pradesh Jeevan Mission of Central Govt. Schemes in Madhya Pradesh

FY23 key statistics

15,203 4,43,695
Pipeline laid (Kms) Water connections done (Nos.)

Key Project

International project

Design & Build for Construction of Water and Sewerage Facilities in 10 Islands of Maldives

Project highlights

The project encompassed the development of various components, including a 78-kilometre water distribution network,
a 53-kilometre sewerage pipeline, and a 16-kilometre sea outfall HDPE pipe. Additionally, the project involved the
construction of eight Reverse Osmosis (RO) plants and administrative buildings. Furthermore, 23 Rapid Sand Filtration
(RSF) tanks were implemented as part of the project. These elements collectively aimed to enhance water supply and
wastewater management infrastructure, enabling efficient water distribution and effective treatment processes. All 10
Islands are at distant location with range varying from 56 to 128 Km from Male Sea port. Lot of underground utilities
encountered during pipe laying works. Very high water table impacted gravity sewerage pipe line works. KPIL was one
of the few companies to deploy Horizontal Directional Drilling Machine to lay sea outfall lines.

27
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Buildings and Factories

Overview
KPIL provides top-tier engineering, Landmark Projects
design, procurement and construction
services to our real estate and
manufacturing clients. We take pride in
our impressive portfolio of current and Rural Electrification
completed projects, having collaborated Corporation World
with renowned industry leaders to deliver Vellore Institution Of Headquarter Building,
projects within the automotive, FMCG, Technology, Tamil Nadu Gurgaon, Haryana.
textile and power sectors, as well as
building projects that span residential,
State of The Art EPC facilities for Grain
IT and commercial, hospitals and
institutional domains. With our exceptional
Building - Office Oriented Electro Steel
team of professionals and cutting-edge
Complex for Supreme at Aurangabad Industrial City,
technology, we guarantee comprehensive Court of India - Delhi Maharashtra
and seamless service, from conception to
completion of all our projects.
RMZ RecoWorld, Bengaluru RMZ Azure

2,700+
Experienced professionals Development of Multi
Prestige Falcon City, Tenanted Building (MTB5)
75+ Bengaluru – ASCENDAS, Bengaluru

Ongoing projects in India

Prestige Falcon Indian Institute of
Pan-India Mall, Bengaluru Technology - Tirupati
Achieved qualifications to execute works

28
 Corporate Overview Management Reports Statutory Reports Financial Statements

FY23 key statistics

14 8 185 Lakh Sqft

Residential projects completed Commercial projects completed area built

1 2

3 4

1 Rural Electrification Corporation World Headquarter | 2 Asian Heart Institute, Mumbai | 3 BCUP, Bengaluru |
4 HDFC bank, Kolkata | 5 Vellore Institute of Technology

Key Project

IIT Tirupati , Institutional Project near Tirupati

Project highlights

The project encompass the construction of the permanent campus of IIT, Tirupati. This involved the development of
academic buildings, including an administrative block and lecture hall complex, as well as residential buildings encompassing
hostel rooms, faculty and staff residences, and sports facilities. The integrated campus seamlessly integrated civil and
MEP (mechanical, electrical, plumbing) works, providing plug-and-play infrastructure.Despite challenging terrain, the
project successfully executed a 10-kilometre bituminous road within the campus, incorporating all necessary services along
its length. In addition, the project achieved a smooth execution of fair finish walls in academic buildings, semi-furnished
apartments, and hostel student rooms, ensuring high-quality outcomes in these areas.

29
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Railways
Overview
We cater to various requirements
of conventional railway lines, high- 7,000 + km 20+
speed rails and metro rails. At KPIL, Executed railway and Electrification Ongoing projects in India
we are engaged in building railway works over (Since inception) and Bangladesh
infrastructure, including railway
electrification, traction substations, track
laying, earthwork, bridges, buildings,
At KPIL, we are committed to expanding innovation, technology and sustainability
stations, workshops, signalling and
our expertise in emerging areas such enables us to offer customised solutions
telecommunications. Our proficiency in
as high-speed trains, dedicated rail that help to deliver excellent quality
handling high-calibre projects enables
corridors and rapid rail transport projects within agreed timelines and
us to fulfil the requirements of different
systems, among others. Our focus on budgets.
types of railway projects and ensures the
highest standards of quality.
FY23 key statistics

700+ 1,234 Route kilometer 133 km

1,667 Track kilometer
Personnel in railway project
in Indian Railways
management and execution

11 km
Electrification done in 2022-23
(RKM/TKM)

19% Total
in Bangladesh Railways

144+ km
KPIL’s contribution to Indian Railway’s Tracks commissioned in 2022-23 (KM)
electrification in FY23
Railway track projects
commissioned during FY23

30
 Corporate Overview Management Reports Statutory Reports Financial Statements

Landmark Projects

Umdanagar Palanpur Madurai

Mahbubnagar Doubling Samakhiali Railway Electrification Tuticorin Doubling
(Telangana) (Gujarat) Project

Delhi Metro Antri-Jhansi Garhwa Road

Electrification work 3rd Line Barwadih 3rd Line (Jharkhand)

Daliganj Bangalore
Kasganj Railway Electrification Metro Rail

Key Project

Gauge conversion of Katosan Road to Bechraji (first ever EPC project for any
division of Indian Railways)

Project highlights

We achieved notable milestones,

including the construction of
three major bridges and three
Road Under Bridges (RUBs),
despite facing difficulties with high
groundwater levels. Collaborative
efforts with the local administration
were instrumental in resolving
local issues, ensuring the project's
smooth progress. Timely approval
of designs significantly enhanced
project efficiency. The project
implemented cost-efficient methods
to adhere to the budget, while
also exploring value engineering
and optimal designs in advance
to ensure favourable outcomes.
Effective waste management
measures, such as conducting
e-auctions for scrap materials,
minimised waste and generated
additional value.

31
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Urban Infrastructure
Overview
We are one of the leading companies Executing projects throughout

India, Ghana,
offering EPC, design and build services
for heavy civil and urban infrastructure
projects worldwide. Driven by technology, Ethiopia and
Maldives
the latest fleet of equipment and a team
of professionals at the helm, we possess
capabilities to undertake construction for
various infrastructure sectors including
Elevated Metro, Elevated Corridors,
Flyovers, Special Bridges, Tunnels (for
Metro Rail, Railway and Roadways),
Highways and Airports for multi-laterally
funded projects. We are currently
executing projects across the country
and have a strong presence globally.

2,500+ km
Highways delivered (Since inception)

22 + km
Flyovers delivered (Since inception)

32
 Corporate Overview Management Reports Statutory Reports Financial Statements

Landmark Projects

National Highway
Santacruz Airport 45-B Lane Pune National
Junction Flyover Extension Highway NH-4
Mumbai Tamil Nadu Panvel, Navi Mumbai

Delhi Metro Chennai Bus

Civil and architectural work Terminal

FY23 key statistics

28 KM 14 KM
Length of Highway and Length of elevated flyover
Roads completed (Kms) completed (Kms)

Key Project

Madurai Chettikulam Flyover Project highlights

(MCFO)
We achieved several significant milestones and accomplishments. Managing a
The 7.3 km long stretch will save travel substantial number of utility lines, including high tension (HT) and low tension
time between Madurai and Chettikulam (LT) lines, along the project alignment was successfully executed. Addressing
by half an hour. Landscaping and concerns related to the shifting of HT lines and erecting segments near them
beautification of four ponds undertaken was safely managed. The transportation and erection of 2,477 segments
along the stretch of the flyover and and 124 I-girders demonstrated efficient execution. Despite heavy traffic, the
facilities like children’s play area and project operated three Launching Girders concurrently, showcasing effective
footpaths developed. project management. Notably, the project includes the longest four-lane
flyovers in Tamil Nadu, spanning 7.3 kilometres, which were inaugurated by the
Honorable Prime Minister of India. The implementation of an Advanced Traffic
Number of Pier Management System contributed to smooth traffic flow. Moreover, the project
enhanced the aesthetic appeal by beautifying four lakes along the alignment
256 and constructing play areas and gazebos.

Number of spans erected

255
33
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Oil and Gas

Overview

400+ Intermediate stations

We remain committed to delivering Our expertise allows us to execute large-
high-quality projects encompassing scale projects and we have established
cross-country pipelines, processing Pumping stations, Pigging stations, Block ourselves as a trusted partner for leading
facilities, refineries and fertiliser plants. value stations etc (Since inception) oil and gas companies in India. We take
Our expertise in design and engineering, pride in adhering to the best Health,
civil, electrical, mechanical, procurement, Safety and Environment (HSE) practices
construction management, testing and quality standards to ensure the
and commissioning allows us to offer safety of our employees, stakeholders
end-to-end services spanning the entire and the environment.
project lifecycle.

22
Ongoing projects in India

Qualified to execute EPC

work in the

Middle East,
Africa and Asia

8,000+ km
of pipelines along with associated works
(Since inception)

34
 Corporate Overview Management Reports Statutory Reports Financial Statements

Landmark Projects

Ennor – Trichy Pipeline Mangla Intrafield Pipeline Mehsana Bathinda Pipeline

Project – IOCL – Tamilnadu Project – Vedanta - Rajasthan Project Spread IV – GIGL -
Rajasthan

OSGE – ADNOC – Abu Dhabi Paradip Haldia Durgapur Pipeline –

Augementation Project – IOCL – West
Bengal, Jarkhand and Bihar

FY23 key statistics

614 km 257
Pipeline laid in 2022-23 (Kms) Horizontal Directional Drilling (HDD)
in 2022-23 (Nos.)

Key Project

344 KM (approx.) cross country product pipeline from Paradip pump station to IOCL PHBPL pump station

Project highlights

We successfully tackled challenges

related to the non-availability of
approach roads and waterlogged
areas caused by frequent rains and
cyclones. Innovative approaches
were implemented to overcome
these obstacles, including the
utilisation of street-smart Chhakara
for transporting resources to
inaccessible work locations. The
floating method was also employed
to shift line pipes via canals. As
a result, the project achieved the
timely completion of the Haldi River
Horizontal HDD Crossing, spanning
1,588 meters, and successfully
carried out a total of 10.8 kilometres
of HDD crossings.

35
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Biomass
36
 Corporate Overview Management Reports Statutory Reports Financial Statements

Overview
At KPIL, biomass power plants are Since then, both plants have so far Emission Reduction) generated from
essential for not only creating jobs in generated 182 Crores units at 80% PLF, its Ganganagar plant for 10 years. The
rural areas, but also reducing KPIL’s consumed 25 lakh MT of biomass and project later achieved Gold Standard
environmental footprint by turning waste generated revenue of H 1,014 Crores. Certification in 2012. The second
into clean energy. This helps us provide biomass plant at Tonk achieved Gold
reliable electricity to people living in rural Both of these plants have the logistics Standard Certification in 2009.
areas. infrastructure needed to collect
approximately 1,80,000 MT of biomass The Gold Standard is the only premium
We set up a biomass plant at Padampur every year. We have paid H 518 Crores so quality standard for carbon emission
in the Ganganagar district of Rajasthan far to the farmers of both plant areas for reduction projects with added sustainable
in 2003. This plant uses agricultural crop biomass purchase, providing them with development benefits and guaranteed
residues and forestry waste (biomass) as additional income. environmental integrity. The Gold
inputs and generates 7.8 MW of power. Standard label distinguishes projects and
In 2006, we set up another biomass KPIL is one of the top companies emissions under the Clean Development
plant in the Tonk District of Rajasthan globally to get registered with UNFCCC Mechanism, joint implementation and
with an 8 MW capacity. This plant also (United Nations Framework Convention voluntary offset markets.
uses agricultural crop residues and on Climate Change) in 2005 and
forestry waste (biomass) as inputs. has benefited from CERs (Certified

37
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Growth Drivers in Sync with

Global and Domestic Trends
Transition to clean energy - A boon for power transmission and distribution business

According to the International energy Additionally, the domestic T&D

agency, global renewable energy is business outlook remains positive with
projected to account for 61% of total a healthy tender visibility of H 50,000
energy generation by 2030, compared to Crores from TBCB - Tariff Based
29% in 2020. Competitive Bidding and SEB's - State
Electricity Board.
Our T&D business is at the forefront
of providing innovative solutions for The T&D business order book,
the transmission and distribution including our international
of clean energy, ensuring that subsidiaries, has reached a record
communities around the world have high of approximately H 16,500
access to reliable and sustainable Crores.
energy sources. Recently our
selection as a preferred EPC partner
by a major utility in Australia for a
significant renewable integration
project underscores our crucial role
in assisting the country in achieving
its net-zero emissions goal and
benefiting local communities.

Internationally, the business visibility

remains strong due to the growing
adoption of renewable energy and
the need for grid integration and
upgrades. Our focus markets include
India, Africa, MENA (Middle East and
North Africa), and Latin America.
In the next 10-12 months, we have
the opportunity to bid on over $4
billion worth of projects in these
international markets.

The Ministry of Power has recently

taken a significant step towards
reaching the goal of installing 500
GW of renewable electricity capacity
by 2030. To ensure the successful
integration of power from renewable
sources by 2030, it is necessary
to establish a strong transmission
system in advance. This is because
wind and solar projects have a
shorter development time compared
to the associated transmission
infrastructure.

38
 Corporate Overview Management Reports Statutory Reports Financial Statements

Clean Water for All – Jal Jeevan Mission

We are fully aligned with the Our water projects in India, Sri
government’s objective of providing Lanka, and the Maldives benefit
clean drinking water to every millions of people daily. We
household. The budget allocation are consistently investing in
for the Jal Jeevan Mission (JJM) in strengthening our capabilities to
FY 2024 has increased by 27%, improve our competitive position to
amounting to approximately H70,000 execute large size projects.
Crores.

Currently, we are executing over 30

projects across 6 states in India, with
a substantial order size close to
H 12,500 Crores.

39
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Growth Drivers in Sync with

Global and Domestic Trends

Growth of Urbanisation and Mobility:

Our Buildings & Factories, Railways, Urban infrastructure businesses are playing a key role in fuelling this development.

Buildings & Factories Railways Urban Infrastructure

Repeat order wins, with an order book of A record allocation of H 2.4 lakh 8 lakh Crore opportunity in the
~H 8,500 Crores Crores in the recent Union Budget elevated metro, tunnel flyover, and
Commercial and Residential launches to high-speed rail sectors over the next
remain healthy on the back of vibrant IT, We continue to adopt a prudent five years
Tech sector and the rising count of global approach and remain selective in
captives, despite global slowdown and bidding given the higher competitive Currently executing projects in India,
rising interest rates intensity Ethiopia, Ghana and Maldives
Leveraging capabilities in international Strengthen presence in technology Commenced execution of an airport
markets –Maldives Housing project
enabled areas like metro project in Maldives
We continue to improve our market electrification, signalling & telecom,
standing by securing new clients and sub-station, high speed rail, ballast- We are improving our capabilities
improving our presence in areas like data less track etc. to secure projects in metro rail,
centres, institutional buildings, processing elevated roads, public spaces,
plants etc. airports etc.

40
 Corporate Overview Management Reports Statutory Reports Financial Statements

Sustainability focused:

Our B&F division has constructed our solar initiative by replacing all green power daily and we take pride
state-of-the-art green buildings in the existing lights, such as CFL and in using biofuel, solar panels, wind
South India, such as the Brigade SV lamps, with energy-efficient LED energy in our day-to-day operations.
Techgarden Commercial Project and lights. This switch to LED lights
the Multi-storied Commercial Building helps us reduce energy consumption Renewable power generation though
called ‘Prestige Hilton Hotel’ in and further minimize our impact on Biomass based plant: Consistently
Bangalore city. Additionally, we have the environment. generating 1,19,000 MWh power
increased the usage of renewable annually - thereby avoiding more
energy to reduce our carbon footprint Our future plan includes installing than 1,00,000 tons of CO2 emission
in the following ways: 830kW of solar panels in FY 23-24, (annually)
using renewable energy instead of
Installing solar panels to offset our conventional power. The panels have Renewable power generation through
consumption of non-renewable a lifespan of 25 years and will be Solar and Wind: We have generated
energy and reduce carbon emissions. transferred to other projects once 13,285 MWh power through Solar
the current project is completed. and Wind Units which comprises of
By using solar power, we have 23.2% of our electrical consumption
reduced our reliance on conventional One of the few EPC companies in (annually).
electricity from the grid and India to generate approx. 327 MW of
minimized the usage of fuel in diesel
generators (DG sets).

These solar panel installations have

been carried out in various locations,
including site stores, project
offices, and worker camps across
multiple business sectors such as
water, infrastructure, buildings and
factories, and oil and gas. In total,
we have installed solar panels with a
capacity of 284kW across 33 project
sites spanning multiple businesses.
As part of our efforts to reduce our
carbon footprint, we have enhanced

Digital Transformation
We have implemented innovative Monitoring Sensors in more than To enhance our surveying capabilities,
technology solutions to enhance 2,500 equipment across multiple we have developed a cutting-edge 3D
various aspects of our operations. business units, we can effectively Cloud Platform. This platform enables
One such example is the use of Face- monitor the utilization of plant and us to efficiently manage and utilize
recognition and GIS technology to machinery. This technology provides information-rich survey data, which
accurately record worker attendance. real-time insights into equipment is captured through conventional
This advanced system allows us to usage and fuel consumption, enabling methods or drones. By leveraging
track the attendance of over 13,000 us to make informed decisions this technology, we can streamline
workers, ensuring efficient and and optimise resource allocation. data processing, improve accuracy,
reliable attendance management. Furthermore, we have also introduced and enhance decision-making across
fuel catalysts in fuel-intensive various projects.
In addition, we have embraced the equipment, significantly reducing
power of IoT (Internet of Things) fuel consumption and minimizing our
and analytics through a dedicated environmental impact.
platform. By installing GPS and Fuel

These technological advancements highlight our commitment to leveraging innovation for improved efficiency, productivity, and
sustainability in our operations.

41
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Board of
Directors
Mr. Mofatraj Mr. Parag M.
P. Munot Munot
Non-Executive Director
Chairman

Mr. Manish Mr. Shailendra

Mohnot Kumar Tripathi
Managing Deputy Managing
Director and Chief Director
Executive Officer

Mr. Sanjay Diverse Experience and Skills

Dalmia
Executive Law
Director Accounting
Secretarial ll s
essional ski

Civil Engineering
Business Management
Commerce
Prof

Economics
Entrepreneurship

Audit Nomination and Stakeholders Relationship

Committee Remuneration Committee Committee

Corporate Social Stakeholders Relationship Risk Management

Responsibility Committee Committee Committee

42
 Corporate Overview Management Reports Statutory Reports Financial Statements

Mr. Sajjanraj Mr. Vimal

Mehta Bhandari
Independent Independent
Director Director

Mr. Narayan Ms. Anjali

K. Seshadri Seth
Independent Independent
Director Director

Dr. Shailendra
Raj Mehta
Finance Independent
Power Director
Infrastructure
Textiles
Sect

Mining
or specific

Taxation
Corporate Law
ski

Real estate
lls

Oil and gas

50%
Independent directors

35 years +
Average experience of the Board

43
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Board of
Directors

Mr. Mofatraj P. Munot of the Group. He is responsible for Mr. Shailendra Kumar Tripathi
the Group’s real estate and property
Non-Executive Chairman development business. At Group level, Deputy MD
he provides strategic support and drives
new business initiatives. He is a graduate
in Commerce and holds an MBA from • BE (Civil).
• Founded the Kalpataru Group in
1969 Carnegie Mellon University, USA. • 35+ years of experience in Project
Management, Operations, Business
• Has been the guiding force behind
Development and Planning
the Group’s stellar success
Mr. Manish Mohnot Mr. Shailendra Kumar Tripathi is a Civil
He is the founder of the Kalpataru Group
Engineer from Government Engineering
of Companies and a first-generation Managing Director (MD) and Chief College, Jabalpur, Madhya Pradesh. Since
entrepreneur with a vision to create Executive Officer (CEO)
defining infrastructure landmarks passing out in 1984, he has worked in
contributing to the larger cause of nation major Infrastructure companies like JMC,
building. Starting with Real Estate, he Gammon India, Larsen & Toubro Limited
has piloted the group’s interests to • CA, ICWA, Advanced Management and Oriental Structural Engineers Private
Power Transmission and Infrastructure Programme from Harvard Business Limited. He has over three decades
EPC, Civil Contracting, Property and School
of experience in the field of project
Facility Management, and, Logistics and • 25+ years of experience in Corporate planning and execution of large-size
Warehousing Services, successfully leading Strategy Planning, M&A infrastructure projects involving roads
Kalpataru to new avenues, within India and
and airports. His technical, strategic
globally. Under his leadership and strategic
decisions and leadership skills coupled
direction, the group has grown to become Mr. Manish Mohnot has more than 27 with his sound financial and business
more than USD$ 2 billion infrastructure years of experience in areas related to
conglomerate with a footprint spanning sense have helped him in securing and
Energy, Infrastructure & Public Private
over 70 different nations along with successfully implementing many projects
Partnership (PPP) Sector. Under his
establishing local presence in Europe and leadership, KPIL has spearheaded various in the Public Private Partnership model.
Latin America, qualitatively impacting the growth and transformation initiatives
lives of thousands of employees and their to build a more focused and stronger
families, several partners and millions of globally diversified EPC business. With his Mr. Sanjay Dalmia
citizens in the communities served by its astute understanding of global business
products, services and interventions. The environment, and ability to motivate team Executive Director
Kalpataru Foundation and The Munot to surpass expectations, KPIL is at the
Foundation, of which he is a trustee, serves forefront to drive multi-fold rise in business
several initiatives across the country, in the to become a leading global Infrastructure
areas of education, healthcare and skilling, • CA, CS, Advanced Management
EPC company with dominant presence in
reaching out to society’s least privileged. Program from Harvard Business
power transmission and distribution, civil
School
construction, urban mobility, water and oil
Mr. Parag M. Munot & gas segment. • 35+ years of experience

Promoter Director Mr. Mohnot also holds key positions

in various industry associations and Mr. Sanjay Dalmia has over three decades
Chaired CII Transmission Line Committee. of experience in areas related to power,
Mr. Mohnot is a qualified Chartered infrastructure, textiles, mining and business
• Managing Director of Kalpataru Accountant, Cost Accountant and has done
Ltd. development. He has earlier worked in
advanced management program from diverse geographies such as the Far East,
• Significant role in strategic growth Harvard University (U.S). Prior to joining Africa, C.I.S. and the Middle East and has
and planning for KPIL and Group KPIL in 2006, he has worked with as a experience working with multicultural
companies Director in KPMG’s business consulting people. He is a qualified Chartered
practice advising leading Indian corporates. Accountant and Company Secretary. He has
He is the Managing Director of Kalpataru also done the Senior Executive Leadership
Limited, the flagship real estate arm Programme at Harvard University, U.S.

44
 Corporate Overview Management Reports Statutory Reports Financial Statements

Mr. Sajjanraj Mehta Mr. Narayan K. Seshadri financial institutions and corporates on
a range of matters including M&A, PE
Independent Director Independent Director Investments, industrial and employee
relations, corporate governance, real estate
negotiation, legal matters, statutory issues
and litigations. She has been associated in
• Renowned Professional with 40+ • 40+ years of consulting experience various positions with International Finance
years of experience advising large in Business Strategy & Finance. Corporation, ANZ Grindlays Bank, Standard
corporates in Corporate Law, Chartered Bank, Emaar Properties (UAE)
• Advisor & Independent Director on
FEMA, Accounting, Taxation etc. and Swadhaar FinServe Limited. She holds
prominent Indian listed Companies
a bachelor’s degree in Law.

He has over 40 years of consulting

Mr. Sajjanraj Mehta is a renowned senior
experience in the field of finance,
professional and expert in the field of Dr. Shailendra Raj Mehta
Accounting, Tax and Corporate Law. He has accounts, tax and business strategy. He
over four decades of experience and serves is a transformative leader, with a wide
Independent Director
as a consultant in the field of Foreign understanding of emerging technologies,
Exchange, Taxation and Corporate laws to regulations and preferences. He focuses
renowned companies. He is a Chartered on business transformation, enabling • M.Phil from Balliol College, Oxford,
Accountant by profession and has an companies to continually address and PhD from Harvard Business
independent consultancy firm. challenges arising from economic, School.
regulatory and technological changes. • Distinguished Economist & Professor
With experience across different sectors
Mr. Vimal Bhandari Dr. Mehta has done his Bachelor’s
and countries, many enterprises he has
counselled are now multibillion dollar and Master’s degrees from Delhi
Independent Director University, M.Phil from Balliol College,
businesses which continue to grow. He
was KPMG India’s Managing Partner Oxford, and Ph.D. from Harvard. He
heading Business Advisory practice. is currently the President, Director
• 30+ years of experience in Banking He is the founder of Tranzmute Capital and Distinguished Professor for
& Financial Services. & Management Private Limited, which Innovation and Entrepreneurship at
• Advisor & Independent Director on provides new ideas, management and MICA, Ahmedabad. After a sixteen
large Indian listed Companies. capital to first generation entrepreneurs year stint at Purdue University, he
and family businesses. He is also on returned to India in 2006-07 to head
the Board of many prominent Indian the collaboration between Duke CE
Mr. Vimal Bhandari has over 30 years companies. He is a Science Graduate and (Duke University’s Corporate Education
of experience in the financial services a Chartered Accountant. Arm) and IIM-Ahmedabad as its head
industry. Presently he is associated as the for India, West Asia and the Middle East
Executive Vice Chairman and CEO of Arka and simultaneously as Visiting Professor
Fincap Limited (formerly known as Kirloskar Ms. Anjali Seth of Business Policy at IIM-Ahmedabad.
Capital Limited), a Non-Banking Finance
He has done extensive research in the
Company engaged in providing debt Independent Director
areas of Entrepreneurship, Industrial
capital to Indian corporates and real estate
developers. He is an Independent Director
Organisation, Information Economics and
in many Indian companies. For six years, till Experimental Economics.
• LLB
April 2017, he was the Managing Director
and CEO of IndoStar Capital Finance • 30+ years of advising companies
Limited. He is a Commerce Graduate in legal matters, M&A, private
from Mumbai University and a Chartered equity, governance, statutory &
Accountant by qualification. compliance

Ms. Anjali Seth has over three decades

of experience in advising top banks,

45
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Experienced and
Dynamic Key Management
Corporate Business Heads

Mr. Manish Mohnot Mr. S K Tripathi Mr. Gyan Prakash Mr. Rajeev Dalela
MD & CEO Deputy MD Oil & Gas T&D India & SAARC

Mr. Sanjay Dalmia Mr. Amit Uplenchwar Mr. D N Reddy Mr. Hitendra
Pooniwala
Executive Director Director - Strategy Building & Factories
Business Group T&D International

Mr. K K Jain Mr. Ram Patodia Mr. Om Prakash Mr. Ramesh Bhootra
Pandey
Director (Integrity) and Chief Financial BD International
Chief Ethics Officer Officer Water Supply and (BD, Tower Sales &
Irrigation Subsidiaries)

Mr. M A Baraiya Mr. G L Gupta Mr. N K Kaushal Mr. G M

Shanthakumar
Chief Human Resource Chief Procurement BD International (T&D)
Officer Officer Buildings & Factories
(South India)

Mr. N Mr. Lalit Tiwari Mr. Afzal Khan Mr. Subramanian

Neelakanteswaran Sadasivam
Head of EHS & Urban Infrastructure
Head of Central PMO Sustainability Buildings & Factories
(North, East & West India)

Ms. Shweta Girotra Mr. Saugata Basu Mr. Rajesh Kanade Mr. Jitendra Kumar
Jain
Company Secretary Chief Digital and Civil International
Information Officer Railways

Mr. Kumaradevan
Srinivasan
Manufacturing Plants

46
 Corporate Overview Management Reports Statutory Reports Financial Statements

Awards and
Recognition
CII award

Operational Excellence
through Digital
Transformation –
2022 award for
Project SPARK

Most Innovative Practice

Excellence Award

Gold Gold Gold Gold

Award Award Award Award

A case study on “Proto A case study on In Lean QC competition: In QC category

Inspection of “5S Implementation in “Process improvement competition:
Transmission Towers” Construction Store Area” through Lean --> offline “CNC Stamping Defect
bending module “ Reduction by 7 QC tools”

Raipur Plant Won in CCQC-22 Raipur Plant Won in CCQC-22

Organized by QCFI Bhilai chapter Organized by QCFI Bhilai chapter

Gold Gold Silver

Award Award Award

Case study on A case study on In Lean QC competition:

“Cost Optimization “Elimination of critical “Process improvement
of Cable Trenches in gaps in the construction through Lean --> offline
Substation” of overhead power bending module “
transmission line”

Excellence Awards at QCFI Bangalore Excellence Awards at QCFI Kolkata Excellence Awards at QCFI Kolkata
Chapter Convention on Quality Chapter Annual Convention Chapter Annual Convention
Concepts - BCQCC 2022

47
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Awards and
Recognition

Gold Shrestha
Technology Technology Suraxa
Excellence Excellence Award
Award Award Purashkar
2021

“BEST DIGITAL “TOP 10 TECHNOLOGY Manufacturing division, Manufacturing division,

TRANSFORMATION LEADERS UNDER 50” Gandhinagar Gandhinagar bagged the
PROJECT” - Mr. Ashok Kumar prestigious award with a
- Manufacturing certificate of recognition
from NSCI

Quantic India Quantic India Quality Circle Forum of India (QCFI) –

Surat Chapter

Bronze Special Gold

Award Award Vishwakarma Award
Award 2022

Transmission Line “Best Presentation: 18 Supervisors got Raipur plant has received
Project won CII – SR EHS Holding the Gains” felicitated by Construction for Manufacturing
Excellence Award in CII National Competition Industry Development excellence from Hansei
Council (CIDC) Kaizen

Achievement in
Electrification
in Railways
Award

Railway Division has

received this prestigious
award at Rail Analysis
Innovation and Excellent
Summit 2022

48
 Corporate Overview Management Reports Statutory Reports Financial Statements

'International British Safety Council Award', 'National Safety Council of India Award' &
Confederation of Indian Industry (CII) Safety Excellence Award

British British British British

Safety Council Safety Council Safety Council Safety Council
award award award award
WO-393, 132KV
OHL WORKS
BETWEEN HATTA
PSHPP (HATAPSHP)
& 132KV SUBSTATION Labzone Bengaluru Life DLF-3 Down Maldives
AND WARSAN (WRSN) science park. Town Chennai. Social Housing
400/132KV SUBSTATION,
Dubai Project Site

Merit category Merit category Merit category Merit category

NSCI NSCI CII

Safety Safety (Confederation
Awards Awards Andhra Pradesh
of Indian
industrial
Industry)
Safety Excellence
Award

IIT Tirupati - DLF-Economically Weaker IIT Tirupati Phase I,

Stage 1 Project Section Delhi (DEWD Site) Chennai
Project

3rd Level Award: SURAKSHA 4th Level Award: PRASHANSA PATRA Silver Trophy and Certificate
PURASKAR (Bronze Trophy)

49
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Introduction to the
IR Capitals

Financial capital refers to the monetary

resources, including funds and assets, that are
Financial Capital
accessible to a business for use in operations, pg. 62-69
investments, in order to pursue business
opportunities.

Intellectual Capital refers to the

resources and intangible assets
Intellectual
that help people, organizations, Capital
and other entities gain pg. 80-85
knowledge, innovate, and have a
competitive advantage.

Manufactured Capital refers

to the physical infrastructure,
tools, and other human-made Manufactured Capital
possessions that are used in pg. 70-79
business operations and other
economic endeavours.

50
Corporate Overview Management Reports Statutory Reports Financial Statements

Social and
Social and Relationship Capital refers
Relationship Capital to the intangible assets and networks
pg. 96-105 created by social interactions,
relationships, and teamwork within a
community or organization.

Human Capital refers to the

Human Capital skills, knowledge,expertise,
experience and capacities
pg. 86-95 of the individuals within a
workforce or population.

Natural Capital is the pool of assets

Natural Capital such as natural resources and
ecosystems, and environmental
pg. 106-112 assets that benefit both people and
the environment in different ways.

51
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Our Value Creation Model

Input Input
Financial Capital
(On a Standalone basis as of 31st March 23) Vision
Total Equity of H 5,320 To be the foremost global player in all the businesses we operate in and
Long term debt: H 1,299 Crores we will achieve this by adhering to our values.
Short term debt: H 1,636 Crores
Our Values
Intellectual Capital
2,500+ equipment installed with
GPS and Fuel-Monitoring Sensors
Significant amount spent on R&D
Pride Customer Respect Business Team Quality
IT systems & processes centricity ethics work
Design & Engineering Capabilities

KPIL is amongst the leading Engineering, Procurement, and Construction

Manufactured Capital (EPC) companies with proven experience and expertise spanning over four
250+ live projects across decades. The Company is executing marquee projects with comprehensive
6 high-growth businesses capabilities that delivers complete solutions covering design, testing,
Tower Structure Fabrication
fabrication, erection and construction of transmission lines, building &
capacity of 2,40,000 MT annually factories, water supply & irrigation, oil and gas infrastructure, railways
projects and urban infrastructure. The Company offers a strong advantage
H 25,241 Crores of order inflow in
by combining various capabilities such as research, engineering, project
FY23
management, construction, and manufacturing. This integrated approach
H 660 Crores gross block additions ensures that clients receive the highest value for their projects.

Create
e we
Valu
Natural Capital
80,593 tCO2e GHG Emissions
(Scope 1 & Scope 2)
972,692 GJ Energy Consumption
2,961,163 KL Water Consumption
Power Transmission
Human Capital & Distribution
No of employees (Permanent):
7,838 Buildings & Factories
Temporary employees: 15,048
HR policies focusing on work-life
Water
balance, training, global learning
opportunities & retention programs Railways

Social & Relationship Capital Oil & Gas Pipelines

H 8.87 Crores CSR spend
15,000+ Vendor partners
Urban Infrastructure

52
 Corporate Overview Management Reports Statutory Reports Financial Statements

Output Outcome UNSDGs

Standalone Financials Strong financial statement post merger
H 14,337 Crores of Revenue Increased geographical reach
(16% yoy growth) Optimizing cost
H 532 Crores of PAT
15.9% ROCE(Based on average capital
employed)
Dividend : H 7 per equity share
Digitized technology
3D Cloud Platform
Revised tower design
Facial Recognition Technology
Increased productivity
IoT & Analytics Platform
Digitization in sustainable sourcing

T&D: 2,961 Towers erected; 2,409 Resource efficiency

CKM of stringing done Effective project management
B&F: 18.5 Million sq. ft.of Area built;
20+ residential & commercial projects
completed
Water: 15,203 km pipeline laid;
4,43,695 water connections done
Oil & gas: 614 km gas pipeline
commissioned; 257 nos Horizontal
directional Drilling done
Railways: 1,234 RKM railway
electrification executed
Urban Infra: 28 km of highway and
roads completed; 14 km of elevated
flyover completed

5.6 tC02E/J Crore GHG Emissions Reduced environmental footprint

intensity, reduction of 5.1% YoY
67.8 GJ/J Crore Energy Intensity
207 KL/J Crore Water Intensity,
reduction of 8.4% YoY

83% Employee satisfaction score in Diversity and inclusion

engagement survey
Satisfied employees
1,17,240 Employee training hours
Leadership development
840+ Training programs organized
10,500+ Courses completed on
Learning Management System
0.08 Lost Time Injury frequency rate
(LTIFR)

49,000+ Beneficiaries for Healthcare Community development

30,000+ Children and youth benefited Educational facilities
through education and skilling Environment protection
9,000+ Saplings plantation Sustainable supply chain
ESG consideration for supply chain

53
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Our Approach Towards

Responsible Business
Stakeholder Engagement Stakeholder
Group
Stakeholder engagement is of
utmost importance as it enables
us to foster mutually beneficial
Employees Investors
relationships with the individuals
and groups that have a stake
or interest in our operations. By
actively involving stakeholders in
decision-making processes, we
gain valuable insights, diverse Engagement Engagement Surveys Quarterly Earnings Calls,
perspectives, and a deeper Methods Newsletters & Notices Investor Conferences,
understanding of the needs and Company Website, Investor
Training and Development
expectations of the stakeholders. Presentations, Press
initiatives
Our organization offers a platform Releases and Annual Reports
for stakeholders to openly Town-halls, get-togethers,
Communication of financial
communicate their concerns cultural events
results via prominent
and aspirations, prioritizing newspapers
transparency, and accessibility.
Information pertaining to
Through fostering collaboration,
Dividends, Notices and AGM
we not only strengthen our
communicated via e-mail
relationships but also gain valuable
insights into the diverse needs and
perspectives of those we serve.
Material Employee engagement Financial Performance
Furthermore, by actively engaging
Matters Employee capability Ethical, Anti-Bribery &
stakeholders in our decision-
making processes, we ensure development Anti-Corruption practices
that our actions align with their Career progression Risk Modelling
Interests, leading to sustainable Reward and Recognition Protection of Rights of all
growth for both our organization stakeholders
Fair remuneration
and the communities we impact.
Effective performance Robust Strategy for
With these concerted efforts, our
management and long-term value creation
objective is to cultivate trust, foster
innovation and create enduring recognition
positive outcomes that benefit all Diverse, inclusive, and
stakeholders involved. enabling work culture
Work-life balance

Impact on
Capitals

54
 Corporate Overview Management Reports Statutory Reports Financial Statements

Customers Suppliers Communities Lenders and Government

Banks and Regulatory
Authorities

Client Meetings Site visits and Community Meetings and Industry Association
Periodic Project inspection projects correspondence presentations
Review Meetings Supplier’s visits Employee Submission of Responding to
Performance Regular volunteerism project reports and Government
Reports interactions Awareness presentations circulated
workshops Timely submission whitepapers
Direct and of financial reports/ Forums
mediated quarterly reports and
Statutory Filings &
interactions stock statements
Disclosures
Regular updates
through calls/
meetings

Product pricing Ethical, Anti-Bribery Transparency Ethical, Anti-Bribery Disclosures

Innovation and IT & Anti-Corruption Advancing & Anti-Corruption Corporate
deployment practices sustainability practices governance
Customer privacy Transparency Ethical, Anti- Corporate Adequacy of solvency
and data protection On-time settlement Bribery & Governance
Fair and transparent
Customer of invoices Anti-Corruption Transparency reporting
service and claim Fair registration practices Disclosures Timely compliances
settlement and procurement Contribution to Regulatory Statutory and legal
Ethical, Anti-Bribery process community welfare Compliance and Fair compliance
& Anti-Corruption Sustained business Healthier and safer Business Practices
Support for
practices opportunities societies
government policy
Customised
solutions

55
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Materiality
Assessment

We recognize the need to undertake

meaningful initiatives to address the issues
Environment
of our stakeholders. One way to address
such issues is by identifying key material Water management
topics through an effective materiality Efficient Energy management
assessment. We followed a systematic
Waste management and circularity
process during materiality assessment
that entailed engagement with Internal Biodiversity and Land Rehabilitation
and external stakeholders, including Climate Strategy and Emission
supply chain partners, industry groups, Sustainable Portfolio
NGOs, local community organizations,
investors, regulators, and research
institutes. In addition, we also conducted
a desk review of the guidelines issued by
global and national standards such as
BRSR, GRI, SASB, DJSI, etc. In addition to
conducting primary research, this exercise
involved gathering information through
secondary research methods. We delved
into studying the Company’s suppliers and
peer companies to gain a comprehensive
understanding of their operations and
practices. Furthermore, we sought
feedback from our business unit leaders
regarding our company’s material issues,
aiming to gather valuable insights and
perspectives from key stakeholders within
the organization.

By incorporating the components, the

material issues for the Company were
identified. However, post the strategic
amalgamation of JMC with KPIL, the Governance Social
material topics were revisited and reviewed
through interaction with leaders of each Corporate Governance Human Rights and Labour
department of both companies. The topics Data Privacy and Security Relations
identified were found to be common to ESG integration in Risk Human Capital Development
both companies. Management Occupational Health & Safety
Brand Management and Diversity, Inclusion and Equal
Communication Opportunity
Reporting and Assurance Customer Centricity
R&D and Digitalisation Corporate Citizenship
Resilient Business and Stakeholder Engagement
Long- Term Profitability Sustainable Supply Chain

56
 Corporate Overview Management Reports Statutory Reports Financial Statements

Material Issues

Financial Company
Double Materiality Double Materiality
Approach Materiality Impact of climate
The Company has extended the approach
conditions on the
and conducted double materiality of
Company’s future
the material issues identified. The
case flows
concept of double materiality refers to
the Impact of Materiality (environment
Double
and social) and Financial Materiality Materiality
as defined by European Sustainability
Reporting Standards and Global Reporting Company Environment Social
Impact
Standards and the need to assess the Impact of Company’s Materiality
interconnectivity of both aspects. The business activities on
double materiality approach encompasses environmental and
a rationale that evaluates how material social conditions
topics impact not only the future cash
flows of the company but also the
environmental and social conditions of the
world across short, medium, and long-term
time frames. To determine the significance
Double Materiality Matrix
of each focus area, we considered
factors such as the nature of activities,
business relationships, stakeholder
Water management
engagement, customer centricity and
resource utilization. This comprehensive Biodiversity and Land
analysis helps identify the reasoning Rehabilitation

behind prioritizing specific topics. By

Climate Strategy and emission
assigning scores to each topic based on
Efficient Energy management Sustainable Portfolio
their rationale for financial, environmental,
Waste management Occupational Health & Safety
and social impact, we developed a double
and circularity
materiality matrix. Based on the scoring Reporting and Assurance
system, topics are categorized into high, Human Rights and R&D and Digitalization
medium, and low priority levels. Labour Relations
Resilient Business and
Diversity, Inclusion and Long- Term Profitability
Equal Opportunity Human Capital Development
This approach allows us to recognize the
interconnectedness between financial Customer Centricity
Corporate Citizenship
performance, environmental sustainability, Sustainable supply chain
Stakeholder Engagement
and social responsibility. It helps us focus Corporate Governance
on the areas that have the most significant Data privacy and security
ESG integration in risk
influence on the company's long-term Brand Management management
success, while also considering the broader and communication
impact on the environment and society. By
taking this comprehensive approach, we
can effectively address key material issues Low Medium High
and work towards a more sustainable and
responsible business strategy. Environment Social Governance

57
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Our ESG Approach

Our ESG Governance,

Risk and Opportunities
Our business operations are guided by bribery. This framework outlines the key measures in place to mitigate such risks and
ESG values, which prioritize the use of ensure compliance with anti-bribery regulations. By adopting these comprehensive risk
environment friendly and sustainable management practices, we strive to enhance its resilience, protect its stakeholders,
technologies, socially responsible and uphold the highest standards of ethical conduct.
practices, and a strong governance
framework. By adopting these values,
we have gained credibility among Material issues identified as risks
our customers, investors, employees,
and other stakeholders, resulting in
long-term returns. It is crucial that
we establish a suitable atmosphere
for both businesses and communities.
Biodiversity and land Climate strategy and Sustainable services /
Our approach to conducting business
rehabilitation emission Sustainable portfolio
is guided by our commitment to
responsible practices that prioritize the
Capitals Impacted Capitals Impacted Capitals Impacted
well-being of society, the environment,
and all stakeholders. Our goal is to Natural Natural Manufactured
increase shareholder value while also Capital Capital Capital
making positive contributions to the
world around us.

ESG Risk Management

The Company has developed Occupational health Data privacy and

an advanced risk management & safety security
framework that enables the systematic
identification, assessment, and effective Capitals Impacted Capitals Impacted
mitigation of risks. The Company Human Intellectual
proactively tracks, manages, and reports Capital Capital
on the key risks and uncertainties that
have the potential to impact its ability
to achieve strategic objectives. This
Note: For more information regarding the ESG risks please refer to Section A question no. 24 of BRSR
is achieved through a combination of
standardized operating procedures
(SOPs), a well-defined organizational The risk management framework ensures that the management of
structure, robust management systems, provides management with a risks is effective, while providing the
a comprehensive code of conduct, comprehensive understanding of the risk necessary intervention for improvement
and aligned policies and values. These landscape, allowing them to evaluate when needed. The Company maintains
elements collectively provide guidance specific risks and potential impacts on transparency by periodically reporting
on how to handle risks within the the company. It serves as a guide for these risk management activities to the
organization. Additionally, we have determining the appropriate strategies Risk Management Committee, ensuring
implemented a specialized framework to manage these risks, reducing accountability, and facilitating informed
specifically dedicated to evaluating and overall exposure. The framework also decision-making.
mitigating the risks associated with facilitates ongoing monitoring and

58
 Corporate Overview Management Reports Statutory Reports Financial Statements

ESG Strategy and Policies

The importance of an Environmental,

Social, and Governance (ESG) strategy
lies in its ability to drive sustainable
and responsible business practices. By
integrating ESG factors into decision- Sustainability Vision Sustainability Mission
making processes, we aim to mitigate risks,
identify new opportunities, and enhance
long-term value creation. It enables us
To be the world’s Integrating Ethical
to proactively address issues such as leading EPCM Sustainability today for a
climate change, resource scarcity, human organization delivering brighter tomorrow.
rights, diversity, and ethical governance.
Adopting an ESG strategy not only sustainable solutions
aligns our businesses with regulatory through continuous
requirements but also helps us build trust
with stakeholders, attract investment,
innovation.
foster innovation, and contribute to a more
sustainable and equitable future.

We have formulated an ESG strategy that specifies the key focus areas and targets towards its growth in the sustainability journey.
The Company’s ESG strategy is built on the 3 vital pillars of:

Creating a Performing Engaging with

1 Positive Impact
2 Responsibly
3 Stakeholder

The identification of pillars in the growth

Creating Positive Engaging with Performing
strategy serves as a crucial framework
Impact Stakeholders Responsibly
to determine the most significant areas
of focus and guide specific actions
and goals. In the case of KPIL, these
pillars have been established through
a materiality assessment, which entails Carbon Emission Health and Safety Responsible
assessing the relative importance of Business Practice
various factors to the company and its
stakeholders. This assessment, combined
with key inputs from management,
ensures that the chosen pillars align
Water Stewardship Human Capital Responsible
with the company's strategic objectives
Management Portfolio
and the expectations of its stakeholders.
By having these pillars in place, we can
prioritize resources, investments, and
initiatives in a targeted manner, enabling
them to pursue growth opportunities Waste Management Local Community Responsible
that are most relevant and impactful to Engagement Souricng
the organization and its stakeholders.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Our ESG Approach

ESG Policies

At KPIL, we recognise the need for its governance structure to adapt alongside the evolving nature of its business and client base.
Our Company is dedicated to continually improving its governance processes and policies, aiming to uphold the highest standards
of corporate behaviour. By leveraging the ESG policies, our Company strengthens the underlying foundation of the organization,
as it remains steadfast in its commitment to fundamental principles and strategies. This includes conducting business ethically and
prioritizing sustainability as core values.

The following policies are in place at KPIL:

Environment Policies Social Policies Governance Policies

Anti-Bribery Anti-Corruption Policy Policy for Material Subsidiaries

Anti-Sexual Harassment Policy Policy For Preservation of

Document & Archival Policy
Code of Conduct for Directors &
Senior Management Policy on Directors Appointment

Code of Internal Procedures Policy on Remuneration for

and Conduct for Regulating, the Directors, KMP and other
Monitoring and Reporting of Employees
Trading by Insiders
Related Party Transactions Policy
Code of Practices and Procedures
for Fair Disclosure of Unpublished Policy on Criteria for appointment
Price Sensitive Information of Independent Directors
EHS Policy

CSR Policy Third party due diligence Policy

Grievance Redressal Policy Directors’ Familiarisation

Programme
HR - Policies and Practices
Dividend Distribution Policy
Kalpataru Code of Conduct

Medical Coverage Policy

Whistle blower Policy

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 Corporate Overview Management Reports Statutory Reports Financial Statements

KPIL’s Corporate Code of Conduct and related policies are available on the
KPIL website https://kalpatarupower.com/policies-guidelines/

During the reporting year, there were no instances of significant fines being imposed on us or instances
of non-compliance with the rules pertaining to the effects of products and services on health and safety,
marketing communications related to products, and product information disclosure and labelling.

Key sustainability highlights

23.8% 8.4% 1,09,500 KL

Share of Renewable Reduction in Water Rainwater harvested
Energy Intensity*

5.1% 49,000+ 50%

Reduction in GHG Health care beneficiaries Independent Directors on
emissions intensity* the Board

*Note: Intensity measured is per H Crore of revenue

61
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Financial
Capital
Our emphasis on establishing
a strong financial base allows
us to enhance performance
and venture into various
areas, attract strategic
investments for expanding
economic value and
promote comprehensive
and inclusive growth by
creating valuable
opportunities for
all stakeholders.

Aligning with the What does Financial Capital

UN SDGs mean for KPIL?

The Company aims to utilize its financial capital effectively

and efficiently to create stakeholder value. This involves
making strategic investments, managing financial resources
wisely, and capitalizing on opportunities in the market
to ensure sustainable growth and profitability while
maintaining the highest standards of ethical conduct.

How does Financial Capital support

KPIL’s Vision?
Material Issues
We have strengthened our capabilities by expanding civil business
Resilient Business in international markets, adding large-size orders in T&D in India
and Long-Term and international markets, and venturing into newer areas like
Profitability airports, solar EPC, data centres, etc., Capex spent for the year
~H 500 Crores. These investments and initiatives are steps in the
right direction to transform KPIL and aide in creating value for
stakeholders.

62
 Corporate Overview Management Reports Statutory Reports Financial Statements

Key Highlights: FY 2022-23

Standalone

Annual Revenue EBITDA* margin PBT*margin PAT

Margin of

16% YoY
8.9% 5.6% 3.7%
H 14,337 Crores H 1,278 Crores H 801 Crores H 532 Crores

Consolidated

Annual Revenue EBITDA* margin PBT*margin PAT

Margin of

11% YoY
9.1% 4.0% 2.7%
H 16,361 Crores H 1,481 Crores H 662 Crores H 435 Crores

*EBITDA and PBT Margin 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

Strategic amalgamation of JMC Projects (India) ltd. with KPIL completed

The Board of Directors of Kalpataru Projects International
Limited (Formerly Kalpataru Power Transmission Limited) and
JMC Projects (India)Ltd. (JMC) in their respective meetings held
on 19th February, 2022, approved the scheme of amalgamation
which inter alia provides for the merger of JMC with KPIL. The
swap ratio being 1 share of KPIL in lieu of 4 shares of JMC.
The key rationale of the merger are:
1) Capability to bid for large-size and complex projects in the
core business,increase geographical footprint by leveraging
KPIL's existing global footprint.
2) Benefit from operational and cost synergies arising from
the scale and size of the combined business
3) Efficient use of management bandwidth and a stronger
balance sheet of the combined entity provides a larger
capital base to pursue growth in the core business.
The merger was completed during the year
with the scheme getting approval from NCLT
on 21st December 2022 and the scheme made effective on
4th January 2023.

63
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Financial
Capital

Process of JMC & KPIL Merger Timeline

• Shareholders meeting for seeking

The Board of directors approval on the Scheme of
approved the Scheme Amalgamation
of Amalgamation of NCLT approval
JMC Projects (India) • Scheme of Amalgamation on the scheme of
Limited with the KPIL approved with requisite majority Amalgamation Record date

19th Feb 2022 6th Sep 2022 21st Dec 2022 11th Jan 2023

31th May 2022 7th Sep 2022 4th Jan 2023 1st Feb 2023

Received no Results of the resolution Scheme of Listing of additional

objection letter for the Scheme declared Amalgamation effective shares of KPIL
from SEBI and on 7th September 2022 from 4th Jan’23
stock exchanges Total share count

16.2 Crores
shares

Pursuant to the Scheme, JMC’s Shareholding as on 31st March, 2023

shareholders (other than KPIL) were
allotted one share of KPIL for every
The scheme of
four shares held by them in JMC. Upon 9.38%
filing of Hon'ble NCLT's order with the amalgamation was
Registrar of the Companies Ahmedabad completed within
on 4th January, 2023, the Scheme of
Amalgamation became effective. The a period of 11
record date for the allotment of shares months.
was 11th January 2023. The newly issued
shares were listed on 1st February 2023.

47.24%
36.46%
6.92%

Promoter DII
FPI/FII Public/others

64
 Corporate Overview Management Reports Statutory Reports Financial Statements

Internal systems and processes were transitioned smoothly for the uninterrupted operations of the combined merged entity. A
new organization structure was announced, and human resource policies were formulated for the combined entity. The scheme of
amalgamation was completed within a period of 11 months. The completion of this strategic initiative has led to the creation of one of
India’s largest listed diversified engineering and construction companies with a global presence and combined order visibility of nearly
H 50,000 Crores.

Listing Ceremony at NSE on 1st February 2023

Combined Entity - Six high growth

business with global footprint

JMC's merger with KPIL has established

us as one of India's largest companies in
the EPC and civil contracting sector, with
a presence in 70 countries worldwide
and an expanded portfolio to support
various stages of the EPC business. The
combined entity has helped us grow Power Buildings & Water
our offerings to include buildings and
Transmission Factories
factories, water, and urban infrastructure
& Distribution
in addition to its existing Power
Transmission and Distribution, Railways,
and Oil & Gas services.

Oil & Gas Railways Urban

Pipelines Infrastructure

65
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Financial
Capital

Strong balance sheet:

Ratings
H
H

Strong Liquidity

Long Term facliities AA/Stable AA/Stable AA/Stable Cash and bank balance

H 1,225 Crores
A1 A1+ A1+
Short Term facliities

H
Long term

Debt mix
H 1,337 Crores Net debt to equity of

Short term 0.55x

Gross Debt of
H 2,468 Crores
H 3,805 Crores
Note: Debt and related ratios are on consolidated basis

Benefits of the Merger - Visible & being realized in phased manner

Operations and cost of

Strategic benefits: financing benefits: Productivity benefits:

• Enhanced capability to strategically • We have started achieving cost • Focused on strengthening internal
establish a portfolio in crucial optimization through centralized controls and compliances, ensuring
businesses, facilitating diversified procurement, efficient mobilization of robust mechanisms are in place to
and sustainable growth resources and reducing unnecessary safeguard against risks and promote
expenses adherence to regulations
• Prioritizing capital allocation to
businesses with high Return on • The business development efforts • The integration of banking, IT, and
Capital Employed (RoCE), ensuring are synchronized across multiple lines HR initiatives allow for synergies
optimal utilization and maximizing of business, ensuring a coordinated and streamlines processes, fostering
returns approach to identifying and capturing greater efficiency and alignment
opportunities across these critical areas
• By optimizing management
bandwidth, we have streamlined • The stronger balance sheet of the • Cross-functional collaboration
resources and focused on key areas, combined entity offers the potential is being encouraged, leading to
improving overall efficiency and for savings in finance costs, leading improved productivity as teams work
effectiveness to improved financial efficiency together seamlessly, leveraging their
collective expertise and perspectives
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 Corporate Overview Management Reports Statutory Reports Financial Statements

Economic value generated Average dividend pay-out of

~18%
and distributed

Over the last 40 years, KPIL has

created immense value for all
shareholders. The Company has Payout Average
established an excellent reputation 30%
for providing high-quality services
25%
and innovative solutions, which has
helped the company to build strong 20%
relationships with clients. 15%
Our company has reported a net profit 10%
of H435 Crores on the consolidated
5%
level and H 532 Crores on the
standalone level. Our company has a 0%
consistent track record of rewarding its
FY 2016

FY 2021

FY 2023
FY 2018

FY 2019

FY 2020
FY 2014

FY 2022
FY 2015

FY 2017
shareholders with strong dividend.

The Board has recommended a

dividend of H 7 per share, subject
Consolidated Order Inflow & Order Book (As of 31st March, 2023)
to the approval of shareholders for
FY2022-23. Our Company has a track Order Inflow Order Book
record of uninterrupted dividend
payments over the last ten years. The
average dividend pay out during this
period stood at ~18%. The market
FY23: 31 March 2023:
capitalization of the company increased H 25,241 Crores H 45,918 Crores
from H 1,498 Crores in FY2013-14 to
H 8,692 Crores in FY2022-23,
growing at a CAGR of ~19.2%.

40% 15% 36% 19%

T&D* B&F T&D* B&F
H 10,179 Crores H 3,755 Crores H 16,479 Crores H 8,547 Crores
Market Cap
(in H Crore)
(As of 31st March 2023) 30% 3% 27% 4%
Water Oil & Gas Water Oil & Gas
H 7,553 Crores H 726 Crores H 12,476 Crores H 1,666 Crores
1,498

8,692

6% 6% 8% 6%
~19.2% Railways Urban Infra Railways Urban Infra
CAGR H 1,557 Crores H 1,471 Crores H 3,747 Crores H 3,002 Crores

36% 40%
64% International 60% International
FY 2023
FY 2014

Domestic Domestic

67
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Financial
Capital

Strategic priorities - Aligned to

strengthen core EPC business FY24 Outlook and Vision 2025

• Strengthening position in diversified FY24 Guidance Standalone

EPC businesses by improving scale
and firming up capabilities Revenue growth Order inflows

• Accelerating revenue prospects

in key markets by expanding
30%+ H 26,000+ Crores
global reach and establishing local
presence PBT margin ROCE
• Addressing challenges related
to non-core assets with agility – 4.5-5% 18-20%
Focused efforts for divestment
of Road BOOT assets and Shree
Shubham Logistics. Finance cost as % of sales

• Continue to drive productivity gains

through expediting project closures,
~2%
technology / digital supported
execution and improving working
capital Vision 2025

• Accelerating initiatives in areas

Revenue Order book
related to ESG/ Sustainability to
build a purpose-led organisation
USD$ 3 billion USD$ 6 billion
(~H 25,000 Crores) (~H 50,000 Crores)

Improving ROCE Improving

20%+ ESG/
Sustainability
Ranking

Way Forward

The Company is committed to generating sustainable value for its stakeholders by following a disciplined capital framework
and making efficient use of its resources. As it moves into the next phase of expansion, the Company will leverage its strong
cash flow and strong financial position. Additionally, the focus remains on the speedy resolution of non-core assets. We expect
standalone revenue growth in excess of 30% for FY 2024 and PBT margin in the range of 4.5-5%. In the long run, the focus
will be on further augmenting our engineering capability and expanding to newer geographies and high-margin segments so
that our overall profitability remains robust

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Corporate Overview Management Reports Statutory Reports Financial Statements

69
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Manufactured
Capital
Creating value for all our
stakeholders by establishing
a strong business model
through efficient operational
procedures, valuable assets,
and reliable IT systems.

Aligning with What Manufactured Capital

UN SDGs Means to KPIL?

Our history as one of India's large listed diversified

engineering and construction companies, with more
than four decades of expertise, enables us to provide a
distinct competitive advantage to our clients.

Material Issues How Manufactured Capital Supports

KPIL's Vision?
Sustainable Portfolio
Our combined entity will continue to unify our visibility
Brand Management
of well-diversified EPC businesses with an increasing
and Communication
portfolio of global projects. Our focus is on developing
Resilient Business and constructing assets that not only benefit our
and Long-Term business but also contribute to the development and
Profitability economic upliftment of the communities where we
operate.

70
 Corporate Overview Management Reports Statutory Reports Financial Statements

Management Approach

With an established footprint in 70

countries, our industry-leading EPC
and construction projects have been
recognised globally for exemplifying
delivery excellence and bringing quality
assets to customers. We have established
ourselves as a major diversified
engineering and construction company
listed on a large scale. With a significant
global footprint, our operations
encompass various businesses, covering
a wide range of services. These
initiatives highlight the strength and
Key Highlights: FY 2022-23
resilience of our diverse business model,
strengthening our identity with a broad
spectrum of capabilities in rapidly
growing sectors and markets. USD 5.6 Bn USD 3+ Bn
of Order Book Order Inflows
The synergies created by the merger of
JMC with the Company will expand the

250+ 2
breadth and depth of our capabilities and
competencies significantly. This will offer
us a competitive edge to take on a wide
range of engineering and infrastructure Ongoing Projects State-of-the-art factories in
projects involving power transmission Gandhinagar (Gujarat) and
and distribution, buildings and factories, Raipur (Chhattisgarh) with a total
water, railways, oil and gas, and urban
1 production capacity of

2,40,000 MT
infrastructure.
Test bed near Gandhinagar for tower
As a leading player in various services,
prototype testing with a capacity of up to per annum
we consistently evaluate and enhance
the agility, responsiveness, and scalability
of our business processes and value 1200 KV
chain. All our EPC projects are certified
by ISO 9001:2008 standards. A cutting-
of single circuit tower 2
edge digital backbone helps us run our Biomass-based power plants with a
operations without disruptions. It also Established global footprint in capacity to generate

70 15.8 MW
allows us to deploy the latest technology
advancements to improve the quality of
our offerings and strengthen our supply
chain management. countries and collect

200,000 MT
1,44,000 of biomass input

MT capacity
Raipur plant is India's largest
manufacturing plant

71
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Manufactured
Capital

The impact of the merger of Our business structure post-merger

JMC with KPIL: Strengthening
our Manufactured Capital

The merger of JMC with KPIL led to

the formation of one of India's largest Power Transmission Buildings & Water
publicly listed diversified engineering and & Distribution Factories
construction companies with combined
order visibility of almost USD 5.6 billion.
Our order book has grown substantially,
drawing on the merger's potential. With
offerings in the well-diversified fields of Design Testing Residential Institutional Water Supply Storage and
power T&D, buildings & factories (B&F), Distribution
water, railways, oil & gas, and urban
infrastructure, the combined business
will have a sizable presence and projects
in India and 70 other countries.
Manufacturing Fabrication Commercial Data Centre Irrigation Intake and
treatment
The combined entity strengthens our
core EPC and construction business
and our competitive edge by opening
new opportunities backed by a strong Substation Factories Hospitals House water Operation &
track record of execution excellence, connection Maintenance
experienced people, and well-established
processes. It positions us strongly to
leverage the opportunities created by
growing global and national spending on
energy transition and civil infrastructure
development. Our strategic focus is
on tapping projects that require a
combination of civil, electrical, and Oil & Gas Railways Urban
mechanical expertise, design, and Infrastructure
construction.

Process Cross Track Overhead Roads and Flyovers

pipeline country Laying Electrification highways
pipeline

Processing Refineries Signaling and Bridges Metro Rails Stations

facilities and fertilizer Telecom
plant

Stations Airports

72
 Corporate Overview Management Reports Statutory Reports Financial Statements

Quality Management
Our quality management framework is periodically reviewed and updated to stay current and relevant with our growing
business, customer, and regulatory needs. An agile Manufacturing Excellence Model takes forward our initiatives for
continuous improvement, including Quality Circle (CFT Projects), Six Sigma interventions, and more. Some of our quality
improvement initiatives for the reporting year are outlined below:

Practicing systematic JIPM (Japan Initiated vendor development Adopted online inspection
Institute of Plant Maintenance) and sustenance for self- modes with customers.
approach under the TPM (Total certification, along with
Productive Maintenance) initiative. periodic internal process audits.

Well-established shop floor Robust rewards and recognition

management practice with programme to motivate employees
regular internal audits. to lead with best practices.

Our Businesses

India is moving towards better

urbanization, infrastructure development,
and power generation. Globally, countries
are making rapid strides to strengthen
their power sector infrastructure to
broaden access and transition to green
energy. Together, these developments
open new opportunities for all our
businesses in India and worldwide.

73
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Manufactured
Capital

Power Transmission and

Distribution (T&D)

Our broad range of service includes design, engineering, manufacture, testing,

installation, and commissioning for transmission lines and substations.

2,961
Towers erected in FY 2022-23
(International and Domestic)

2,409 Circuit Kms

Stringing done in FY 2022-23
(International and Domestic)

Market Opportunities and

Organisational Readiness Developing Australia’s Humelink (East) Transmission Line Project

The business outlook appears highly

Being one of the largest EPC This project will play a key role in
promising due to the increased focus
companies in T&D, we leave no helping Australia achieve its Net Zero
on renewables and the establishment
stone unturned to deliver quality emissions goals powered by cleaner
of new transmission and distribution
to our domestic and international energy. We will utilize our strong
infrastructure in both domestic and
clients. With the same endeavour, EPC capabilities, particularly our
international markets. Additionally, the
KPIL has been selected along with global project delivery, design, and
proposed investment of H 20,700 crores
Acciona Construction Australia engineering expertise, to successfully
for the integration of 13GW of renewable
Pvt Ltd and Genus Plus Group Ltd construct and deliver this ground-
energy in Ladakh contributes significantly
as the Preferred Proponent to breaking project in Australia.
to the vast business potential. Moreover,
deliver Transgrid's HumeLink (East)
we see a substantial tender pipeline of
transmission line project in Australia.
over H 50,000 crores in India over the
next 20-24 months as an opportunity. In
international markets, we enjoy strong
visibility with a tender pipeline exceeding
USD 4 billion, particularly in targeted
regions such as Africa, Latin America,
Asia, and the Middle East.

74
 Corporate Overview Management Reports Statutory Reports Financial Statements

Buildings and Factories

(B&F)

185 lakh sq. ft.

We offer EPC services for the design and construction of residential, commercial, and
institutional buildings, hospitals as well as factories and industrial projects.

Of area built in FY 2022-23

22
Residential and Commercial properties
completed in FY 2022-23

75+
Ongoing projects in India

Market Opportunities and

Organisational Readiness Motorised Shade System

India's commercial real estate sector is

experiencing hyperactivity due to the At our B&F site, we have implemented A device to track the sun's movements
rapid growth of the IT, e-commerce a motorised shade system to block is installed on the terrace and
and manufacturing industries and the direct sunlight from entering the connected to the solar adaptive
spread of data centres which opens up cabins. The specially designed cloth device. It sends commands to the
significant opportunities for the B&F used in the shades efficiently absorbs shade controllers, ensuring optimal
business. We enjoy a strong market heat while allowing natural light to shading based on the sun's position.
position due to repeat orders from pass through. This improves the This system reduced the overall heat
prominent developers and new business energy consumption with efficient entering the building by 5 to 7%.
from institutional clients. We made a insulation and light control. This, in turn, led to a decrease in the
bold entry into the pre-cast technology cooling requirements and generated
Furthermore, we have incorporated a energy savings.
segment, highlighted by the successful
solar adaptive device that intelligently
completion of a hybrid pre-cast building
operates the curtains based on the
in Bangalore. This significant milestone
sun's position. This device selectively
showcases our expertise and strengthens
closes the shades in specific zones
our position in the industry. We are
while keeping others open to maximize
expanding our international presence to
natural light penetration.
explore infrastructure projects in sectors
such as social housing, hospitals, and
government offices, broadening our
reach and diversifying our portfolio.

75
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Manufactured
Capital

Water

Our EPC solutions cover the entire spectrum of water infrastructure development, from project design to implementation and
management. We specialize in water infrastructure projects, including water network development, water treatment plants,
desalination, irrigation, and water linking projects.

15,203 Kms
of Pipeline laid in FY 2022-23

4,43,695 (Nos)
Water Connections done in
FY 2022-23

19,000+ kms
Water pipe network laid (Since inception)

15+ million
Beneficiaries' lives impacted (Since inception)

Market Opportunities and

Organisational Readiness

The Indian Union Budget 2023 has

earmarked H70,000 Crores for the Jal
Jeevan Mission (JJM), a 27% increase,
reflecting the government's strong
commitment to providing clean and
accessible water to all. We are executing
projects across six states in India. We are
continuously enhancing our capabilities
and bidding for large-scale projects in the
domestic and international markets. Our
order book currently stands at a record
high of H 12,000+ Crores.

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Oil and Gas Pipelines

Our services includes cross-country oil and gas pipelines, processing facilities, refineries and fertiliser plants.

614 km
Of pipelines laid in FY 2022-23

257
Horizontal Directional Drilling in
FY 2022-23

22
Ongoing projects in India

400+
Intermediate, pumping, pigging, and
block value stations
(Since Inception)

Market Opportunities and

Organisational Readiness

We are actively involved in several bids,

taking advantage of a multi-year upcycle
in various markets. Globally and in India,
we have a robust tender pipeline of
over USD 3 billion, scheduled for the
next 8 to 9 months. We have received
qualifications to bid in 6-7 countries and
we expect to expand our international
reach in the Oil & Gas business.

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Manufactured
Capital

Railways Urban Infrastructure

We offer building railway infrastructure, which encompasses We offer design and construction services that cover a wide
a wide range of services such as railway electrification, track range of sectors, including elevated metro, elevated corridors,
laying, earthwork, traction substations, bridges, buildings, flyovers, special bridges, tunnels (for metro rail, railway, and
stations, workshops, signalling, and telecommunications. roadways), highways, and airports projects.

Nearly
20+ 28 km 14 km
19% Ongoing projects in India Of highways and roads Of elevated flyovers
Contribution to Electrification and overseas completed in FY 2022-23 completed in FY 2022-23
of Indian Railways in FY 22-23

2,500+ km
1,234 RKM/ Highways delivered
1,667 TKM (Since Inception)

Electrification done in
FY 2022-23

Market Opportunities and

Organisational Readiness
Market Opportunities and
Organisational Readiness India's large and vibrant market is expanding the demand
for urban infrastructure driven by the growing presence of
India has allocated H2.4 lakh Crores for expanding and IT, e-commerce, etc. KPIL is geared to tap these growing
upgrading the railway network in the country. This significant opportunities leveraging our engineering capabilities, experience,
investment opens new growth avenues for KPIL and improves and technology leadership. We are improving our capabilities
order visibility in the sector. We are increasingly looking to to secure projects in metro rail, elevated roads, public spaces,
strengthen our business in areas like metro electrification, airports etc.
signalling and telecom, RRTS, and High-Speed Rail. We are
also pursuing global opportunities in railway infrastructure Globally, we have commenced the execution of an airport project
development. in Maldives and continue to work on infrastructure projects in
Ethiopia, Ghana, and Maldives.

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Renewable Power Generation from Way Forward

Biomass Given the macroeconomic volatility,
we have a growth strategy which
involves investing in technology,
tools, and capabilities to adapt to
the dynamically changing external
environment and customer needs. We
aim to strengthen our market position
by further diversifying our business and
fortifying our manufacturing, design,
engineering, construction, and project
management capabilities. The merger
also reinforces our market position in
high-growth EPC businesses and places
us favourably to leverage on the global
push for infrastructure development
and fast-paced adoption of clean and
green energy.
KPIL's biomass power plants play a
crucial role in promoting sustainable 182 Crore We are optimistic as both domestic
and international markets present
and inclusive development across India.
Units generated significant growth opportunities for all
These plants not only generate rural
our businesses. The government and
employment but also contribute to a
private sector investments in water,

25 lakh MT
greener environment by converting
infrastructure, airports, buildings,
waste materials into clean energy. We
manufacturing, and railways are
established our first biomass plant in
Of biomass consumed driving remarkable growth and capital
Padampur in the Ganganagar district of
expenditure. By investing in advanced IT
Rajasthan in 2003. This plant utilises
infrastructure and digital tools, we have
agricultural waste and crop residues as

15.8 MV
reduced project delivery timeframes,
inputs to generate 7.8 MW of power.
enhanced responsiveness to urgent
Another biomass plant, with a capacity
events, and maintained our focus on
of 8 MW, was set up in the Tonk District Generation capacity of the 2 value creation.
of Rajasthan in 2006. Both plants are biomass plants
equipped with logistics infrastructure to Going forward, our focus will be on
collect approximately 200,000 MTs of further augmenting our engineering
biomass inputs annually. capability and expanding to newer
geographies and high-margin
We were one of the first companies
businesses so that our overall
to register with UNFCCC in 2003. The
profitability remains robust.
Ganganagar plant generated CERs
(Certified Emission Reductions) for
10 years and achieved Gold Standard
Certification in 2012. The Tonk plant
achieved Gold Standard Certification
in 2009, further establishing KPIL's
commitment to sustainable development.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Intellectual
Capital
Creating value for all our
stakeholders by adopting
advanced technology
solutions, investing in R&D
capabilities, and deepening
our innovation culture.

Aligning with the What does Intellectual Capital

UN SDGs mean to KPIL?

Our world-class construction and project management

capabilities are propelled by a strong foundation of
Intellectual Capital, including our R&D centre, innovation
leadership, talented engineers and a workplace that
encourages out-of-the-box thinking.

How does Intellectual Capital support

KPIL’s Vision?
Material Issues
Our 'Innovation and Digitalization' vision drives our
Data Privacy and efforts to increase efficiency and achieve on-time
Security delivery. We intend to enhance our processes by
leveraging the latest innovations such as Industrial
Innovation and IoT, drones, and virtual reality. Furthermore, our
Technology commitment to applying an advanced analytics platform
will guide our efforts toward exceptional performance.

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Management Approach

The strategic amalgamation of JMC with

KPIL heightens our acknowledgement
of the importance of technology and
innovation in ensuring productivity and
sustainable growth. Together, we are
accelerating our efforts to grow business
and deepen sustainability into our actions
through automation, digitalisation and
increased focus on R&D.

We continue to keep our unwavering

commitment towards providing excellent
services. Our design specialists and
engineers, who have unmatched
experience in successfully delivering
complex EPC projects around the
world, lead the charge for upholding
high quality delivery. We continue
to prioritize skill development and
investment in research and development
to stay up-to-date with industry and
market advancements. This gives us
the ability to keep on offering superior,
safe, and outstanding services. We
are rapidly embracing digitalization by
implementing technologies that enable
real-time monitoring of our operations.
These technologies also provide visual
infographics that aid efficient monitoring
and diligent management of processes
across all our locations and Businesses.

Key Highlights: FY 2022-23

2500+
Equipment installed with GPS
and monitoring sensors

Face
Recognition
and GIS
Technology
Installed for resource
monitoring

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(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Intellectual
Capital

Adopting Automation and

Digitisation to Enhance
Efficient Monitoring

3D Cloud Platform for Managing Survey

Data

Conducting surveys is critical across our

project lifecycle, from the pre-bidding
to the handover stages. These surveys
provide essential data for understanding
terrains, designing routes, and estimating
cut and fill volumes. In order to address
the challenge of cross-sharing of data
between projects and businesses, the
Company has started using drones for
surveying and developed a 3D Cloud-
based platform to manage and utilise
the survey data captured through
conventional methods and drones. The
platform hosts a central online repository
of survey data for all business units. It
includes user-friendly search features and
retrieval capabilities based on location,
type of survey data, and chainage
information. The web-based application
also provides seamless and secure access
to data with role-based access control for
teams and departments.

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Facial Recognition Technology To attendance system, to overcome these attendance and availability at the actual
Improve Attendance and Productivity challenges using face recognition and work location. Integrating the attendance
Geographic Information System (GIS) data with the worker payroll system has
One of the major challenges faced by technology. This technology ensures eliminated the need for manual efforts
infrastructure development projects, attendance can be recorded only at the to compile attendance records. Overall,
especially linear ones, is tracking worker designated Geofence (work location) this solution enhanced the productivity of
attendance at the actual work location. allocated to the worker for project route, the teams considerably across projects.
These projects run for hundreds of site offices, stores, etc. Currently, the attendance of more than
kilometres, making tracking worker 13,000 workers is being tracked using
attendance at specific locations difficult. The new automated attendance system this technology.
We established a mobile-based worker has significantly improved worker

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Intellectual
Capital

IoT & Analytics Platform for refill quantity and time. Catalysts were Re-envisioning Tower Design
Monitoring P&M installed in fuel-intensive equipment
to reduce consumption. A GPS-based
We implemented an innovative IoT and vehicle tracking system was implemented
Analytics based solution for monitoring to validate the distance travelled claimed
the performance of plant and machinery by site-vehicle vendors. The solution not
(P&M). only improved operational efficiencies but
We have installed Global Positioning also reduced consumption of fossil fuels,
System(GPS) and fuel monitoring GHG emission and our carbon footprint.
sensors in more than 2500 equipment
across multiple BUs to effectively
Impact
monitor P&M and fuel utilisation. A
customised analytics dashboard helped • Utilisation : Improved by 8-10%
monitor P&M performance centrally,
• Fuel Consumption: Reduced by
including utilisation and fuel cost. An
3-4%
Radio Frequency Identification (RFID)
-based fuel management system was • Fuel Pilferage and Low Refill
implemented to ensure refuelling Cases: Significantly reduced
was done only in designated RFID-
authenticated equipment, with accurate

KPIL undertook an innovative initiative of

designing and erecting a human-shaped
66 KV transmission tower in Tajikistan.

To optimise space requirements, KPIL

re-designed a 225 KV D/C transmission
tower at Guinea

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Digitization in sustainable sourcing We have implemented Material Data

Management (MDM) practices to Way Forward
We have implemented an e-procurement standardize material and service
platform that digitizes our entire codes across our organization. This
procurement process, including RFQs, As we take firm strides to make
standardization enhances data quality,
negotiation, approval, and issuance of our mark in new markets and
provides better visibility of spend, and
purchase orders. This digital platform segments powered by the strategic
enables future advancements in digital
enables faster procurement cycles, amalgamation of JMC with KPIL,
transformation such as Robotic Process
eliminates redundant processes, and we stay focused on widening the
Automation (RPA), Internet of Things
coordination with suppliers, and expands scope of automation, digitisation
(IoT), and Artificial Intelligence-Machine
our pool of vendors. and R&D activities to enhance the
Learning (AI-ML).
efficiency and sustainability of
To enhance control, cost savings, and Overall, these initiatives strengthen our operations. We aim to develop
confidentiality in sensitive procurement our procurement capabilities, optimize a clearly defined roadmap for
activities like bids and pricing, we have efficiency, and pave the way for advanced digital transformation that will
developed an in-house e-auction facility. digital transformations, empowering strengthen our central monitoring
This facility enables us to conduct both us to deliver sustainable and innovative mechanisms with real-time data
reverse and forward auctions. solutions to all stakeholders. inputs, consolidated interactive
dashboards and data analytics
to garner insights and improve
decision-making processes.

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Human
Capital
We collaborate with businesses
to drive strategic goals and
foster a culture of continuous
learning. Our aim is to create a
value-based, people-oriented
organization that prioritizes
excellence, empowers, and
engages employees, and
cultivates competitive
synergies of competencies
to sustain performance
and promote
recognition.

Aligning with the What does Human Capital mean

UN SDGs to KPIL?

We are aware that human capital management is crucial for

our long-term growth, and we aim at nurturing our talent at
every stage of their career. The dedication and commitment
of our skilled workforce has contributed to our reputation as a
prominent player in the EPC industry and we wish to be mindful
of it in every decision we take.

How does Human Capital support

Material Issues KPIL’s Vision?
Diversity, Inclusion, and Equal
Opportunity To create a competitive advantage for all stakeholders through
agile and effective people management.
Human Capital Development

Occupational Health & Safety

Human Rights and Labour

Relations

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Management Approach

A strong organisational culture, strategic

objectives, and long-term goals are all
centred around providing comprehensive
support and care for our people, enabling
them to thrive in their professional
journeys and maintain a sense of well-
being. Driven by a shared commitment
to service and genuine concern, every
employee at KPIL is inspired to go the
extra mile, not only in fulfilling their
individual responsibilities but also in
creating social value and leaving a
positive impact on the world.

Key Highlights: FY 2022-23

83% employee 840+

satisfaction score in Employee Training programs organized 12 new courses
Satisfaction Survey during FY22-23 introduced on LMS

The impact of the JMC - KPIL merger on our human capital We have defined four culture tenets
that will guide our future success:
As we embark on an exciting journey to establish a robust Human resource framework,
we recognise the invaluable contributions of our employees of the combined identity.
As an integrated entity, we will further strengthen our efforts to build the right
capabilities and provide our people with the right opportunities to succeed. Our
integrated structure will align resources, foster growth, and encourage cross-functional
Ownership Operational
collaboration while opening doors to diverse career opportunities. Moreover, we are
Mindset: Take Excellence:
committed to enhance talent management practices, providing extensive learning
responsibility for Ensure customer
opportunities, and nurturing long-term career growth for our dedicated workforce.
outcomes and expectations are
make the decisions met by consistent
to successfully and continual
achieve them. improvements.

Capabilities People
of the Future: Excellence:
Sustain current Enable positive
capabilities experience for all
and focus on the touchpoints
developing future of an employee
capabilities.

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(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Human
Capital

Diversity, Inclusion, and Equal

Opportunity
We are an equal-opportunity employer senior leadership positions. Our goal them for higher roles, including cross-
and hire based on merit regardless of in the coming years is to increase the functional exposure and grooming
gender, caste, creed, religion, or other representation of women in senior programs. For all levels such as Senior
characteristics. Our work culture is leadership positions. We are committed Management, Mid Management and
built on the principles of collaboration, to empowering women to exceed their Junior Management we have gender
respect, and fairness, ensuring that every full potential and not just meet it. We pay ratio of 1:1.
employee feels valued and can contribute are taking various initiatives to prepare
their unique perspectives and talents.

We have taken specific initiatives to Company Pyramid and Age Diversity

attract, retain, and develop members
of underrepresented groups by Age Group
understanding and addressing their Total
Management Level <30 years 30-50 years >50 years
Employees
needs. One of our important initiatives Male Female Male Female Male Female
in this regard is focusing on employing
Leadership & Senior 325 - - 173 4 147 1
differently abled individuals. Our Management level
workforce comprises eleven individuals Middle Management 611 1 - 453 19 137 1
who receive dedicated care, support, and Junior Management 2,525 188 14 2,103 58 158 4
attention to facilitate their success in
their respective roles.
Trend in Hiring over the past few years
Furthermore, we are making concerted
efforts to increase the representation Particulars 2019-20 2020-21 2021-22 2022-23
of women in our overall workforce, Total new hires 763 278 429 2,527
which currently stands at 3.6 %. At % Of employees hired through 29% 35% 39% 37%
present, we have five women holding internal job posting

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Human Capital Development

At KPIL, we believe in the concept of

lifelong learning. We aim to develop J 3,172
people capabilities by making the Average amount
process of learning seamless through spent per employee

1,17,240
accessibility and connectivity. We offer on training and
learning of all types including functional, development
technical, management, leadership, etc. Total training hours
To foster the continuous growth and
success of KPIL, the skilling, upskilling,
and reskilling of our staff and executives
are of utmost importance. In alignment
with this commitment, we are delighted

10,500+ courses
to announce the establishment of a
dedicated skill development centre.
This center will focus on enhancing
completed on Learning
capabilities through on-the-job trainings,
Management system
certification programs, and other
relevant initiatives in the skilling domain.

Leadership Development

Leadership Development has been

one of the prime areas of focus for
us, moving forward. Our learning
and Organisation Development team
thus ensures institution and effective
execution of numerous capability
development initiatives for employees
across all grades.

We aim to identify and nurture

individuals who demonstrate exceptional
leadership capabilities and potential to
reach key roles within the organisation
through a 3-level approach to
leadership development.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Human
Capital

1 2 1
ELEVATE: LEAP: SLDP:

Early Leadership Excellence, Leadership Excellence Senior Leadership Development

Visioning and Talent Engagement and Purpose Program
Programme

The 9-month journey is This programme is a 9-month Designed in partnership with the
tailored for high-potential and journey developed for high- Indian Institute of Management,
performing employees across potential employees across mid to Ahmedabad for Senior Leaders,
entry to mid-management levels. senior-management levels. the programme enhances key
competencies amongst high-
It aims to help employees It aims to help employees potential leaders.
transition from: transition from:
This programme focuses on
• Leading self to Leading • Leading Managers to
Others Leading Functions • Strategic Orientation

• Leading others to Leading • Leading Functions to Leading • Relationship Building

Managers Business
• Trust Building and Change
The programme is facilitated in The programme is facilitated
collaboration with Development in collaboration with Jombay. It • People and External
Dimension International (DDI) brings together classroom, peer, Stakeholder Management.
and Right Management. It and self-paced virtual learning
The on-campus sessions aim at
involves a combination of through the iDEV app offered by
helping leaders gain insight into
classroom sessions at regular Jombay.
critical leadership and managerial
intervals.
capabilities under expert faculty.

Employee Participation Employee Participation Employee Participation

52 42 35
Employees Employees Employees

Technical Training

We try to utilise the latest technology in on-the-job practical skills training, (ii) teams for highly critical technical skills. All
not just creating great infrastructure but Custom designed LMS based technical the three modes are highly immersive and
also in all the internal interventions. We training modules which enable post provide an interactive learning experience
have adopted a three-pronged approach to training assessment and (iii) by way of to employees.
facilitate skilling of our teams; (i) through external certification and training of our

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Functional Training

One of the key competencies that we thinking, leading a project through of the key function of the value chain of
continuously aim to develop amongst crisis, budget and cost management, the Company. The virtual series led by a
our teams is project management. We and contracts and claims management. PMP certified faculty focuses on six key
aim to bring in a shift from construction The module covers key areas of areas: a) project management, (b) risk
management to project management project management like (a) strategy, management, (c) cost management,
across our teams and to develop a pool SWOT, project charter, stakeholder (d) project schedule management,
of talent ready for current and future management and risk management, (b) (e) project schedule management,
leadership roles in project execution. project scoping and scheduling, resource (f) stakeholder management and (g)
To ensure this, we are facilitating two management and negotiation, (c) project communication management around
comprehensive programs specifically communication, conflict resolution and 500 employees have been covered under
designed to equip them with the managing and leading teams along with the series so far.
necessary tools and knowledge to group action learning projects. This
In addition to Project Management as
effectively navigate various challenges year, a total of 29 participants have
a competency, we regularly facilitate
and complexities that may arise during successfully completed the certification
training for other functional teams for
project execution. program, and in the past, we have
key areas to ensure their effectiveness
certified three batches.
Project management certification in in their roles. Such programs range from
partnership with S P Jain school of For the understanding of larger contracts and claims management, stores
global management. This training series audience, we facilitate a six-part virtual and inventory management, procurement,
covers areas crucial for project success, series on project management which finance, accounts, and taxation related
including design thinking, critical helps them understand the in and out training etc. to name a few.

Employee Engagement Programmes

At KPIL, apart from the continuous engagement initiatives like summer camps for the kids of our employees, festivities, annual
days, etc., we aim at focusing on the wellness and togetherness of our employees, as we believe that we are Kalp-Parivar. We are
thus constantly re-evaluating our existing policies to ensure the employees’ best interest. In line with the same, here is a list of
forward-looking policies that we practice/ have added this year:

Flexible Well-being and

Working Hours learning focus
Parental Leaves
and Sabbatical
• We have flexible working hours • We have defined forward • We prioritise the well-being of
and leave policy internally looking policies like paternity employees by annual health check-
available for the employees that leave and sabbatical to ups, first aid and CPR trainings, etc.
outlines guidelines and eligibility ensure that the employees and have also revised our medical
requirements for leaves and are supported during the insurance policy to with increased
flexible working arrangements highs and lows of their lives sum limits for many grade

• We have also recently included a

higher education policy in line with
our lifelong learning mindset.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Human
Capital

Support and Communication for the merger

A merger is a unique and critical phase in detail and were given a chance to ask any queries. The workshops have helped
not just for the organisation but also strengthen the faith of employees in the newer, stronger entity that has emerged
our employees and we acknowledge out of the merger.
that. To ensure that our employees are
aligned and at ease during this process,
we have partnered with an external
expert to develop and implement a
strong and sustained multi-modal
communication strategy.

Apart from the regular mail

communication on changes from all the
leaders’ desks, conducting of change
workshops at multiple locations was one
important part of this strategy wherein
employees were informed about the
new structure, policies, changes, etc.

Occupational Health & Safety (OHS)

The EHS-way of life Monitoring & Training & Development In-Depth Incident
Measurements investigation

• Comprehensive polices Monitoring: • Detailed training during • Fast track incident call
and sops induction tree
• Daily project wise EHS
• Linkage of EHS KRA at all data collation and review. • Regular workshops and • WHY WHY Analysis
level on the job training for
• Monthly Rapid Quantitive • Knowledge Management
contractors and project
• Detailed EHS Risk EHS assessment of each system: Sharing of
mangers
assessments site lessons learnt from
• Behavioural based safety incidents to prevent
• Empowerment letter to • Quarterly: Team
cultural transformation Recurrence
BU/RO/ site from MD/ Assessments and EHS
EHS head updates to chairman/ • Emergency Drill
board of director
• Integrations of EHS in • Safety Passport
planning & designing Measurement:
• EHS Awards and
stage of every new project
• Detailed dashboard Disciplinary Policy unsafe
• KPIL TOLL FREE number with Company level act/conditions
(1800 833 7979) for consolidates view and site
convenient reporting of level issues drill down.
unsafe act/conditions
• 3 layer cross entity audits

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 Corporate Overview Management Reports Statutory Reports Financial Statements

We uphold the highest health and safety The risks which are rated high in terms weekly safety committee with the head
standards across our operations through of severity, are considered critical and of the department and project leadership
a structured approach. Our employees' actions are taken to minimise/eliminate teams. Furthermore, monthly safety
active engagement and participation play the risks. In certain cases, irrespective of committee meetings are conducted
a key role in helping us progress towards lower probability of any risk if they are to enable workers discuss any issues
our goal of Zero Harm. perceived critical, actions are taken to pertaining to health and safety.
mitigate them.
We have implemented Occupational As part of our commitment to
Health and Safety Management system, All workers are provided with environmental, social, and governance
certified as per ISO:45001:2018 appropriate awareness trainings at (ESG) practices, we have established
Standard. All business units have a all stages including identification of quantitative health and safety targets.
systematic activity conducted for hazardous activities, risk associated These targets are designed to create
identification of potential risks originating and the consequence of such activities. a safe working ecosystem for our
from occupational activities at periodic Appropriate communication channels are employees, safeguarding their wellbeing
intervals. The risks are categorised based provided to workers report any work- and ensuring a secure work environment.
on frequency and severity. related hazards such as daily meetings,

Particulars 2019-20 2020-21 2021-22 2022-23

LTIFR 0.183 0.112 0.16 0.078
Lost Time Incidents 28 22 32 16
First Aid Cases 3,710 2,901 3,290 3,443

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Human
Capital

In FY2022-23, the Company encouraged its employees and contractors to practice & integrate the EHS for prevention and
mitigation of incidents, with a focused approach on the following areas:

EHS Initiatives:

Process Driven approach: Robust EHS Review Engineering control EHS Training
Mechanism Mechanism
• Effective & constant • Formation of EHS steering • Provision and use of safety • State-of-the-art learning
Daily Safety reporting committee at business/ site measures for fall control at centre for aspirants in
from all sites levels transmission tower during order to convert their
erection activities knowledge into actual work
• Corporate EHS • 3 layer EHS audit to
practice
Operational control understand the common • Use of right personal
procedure for Safe work challenges & expectations protective equipment • Site based safety park for
system, its complete on existing systems (PPE)-during work near in live demonstration
step by step operational live lines
• EHS Walk round of Project • Provision of EHS LMS
guideline with safe work
site by BU head/project • TPI of lifting tools and module on different topics
practices
site line management team tackles at sites for effective learning
• Reporting and in-depth around the sites to resolve
• Provision of CCT Camera • Virtual Reality Simulation
incident investigation the EHS issues
system at tower location to used for trainings
guideline
• Fortnightly EHS review with monitor safe work practices
• EHS induction movie of live
• EHS reward & BU/RO EHS head
working practices & safety
recognition policy to
• Fire Safety audits across training modules
encourage & appreciate
buildings
performance of Different Trainings
employees • Customer feedback conducted:
form for measuring the
• EHS enforcement • Weekly EHS webinar for
satisfaction level for EHS
& work stoppage all level of employees
standard
guideline for work
• Job specific training
stoppage notice during
any activities that may • Leadership EHS
cause high potential workshop
incident • Induction & refresher
• EHS Journal – to handle training
the emergency crisis
and also to establish
collaborative effort
towards positive EHS
culture and spread the
awareness across the
organization

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Human Rights
Way Forward
The company upholds the utmost
propriety and high standards of adherence
Following the merger of JMC
to all applicable laws. We maintain the
with KPIL, the integrated entity is
highest standard of corporate citizenship
redefining its future by cementing
and governance, complying with all laws
its human resource framework
and legislation.
aiming to attract and retain
We treat everyone who works for the the best talent and nurture the
company fairly and without discrimination. next generation of leaders. The
Employees, agency staff, vendors, company remains committed to
suppliers, and workers engaged by creating opportunities to enhance
contractors are entitled to work in an the diversity in its workforce.
environment and under conditions that
respect their rights and dignity. We
strongly appreciate diversity in all forms,
achieving gender parity is a priority for us.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Social and
Relationship
Capital
Strengthening our operations
by creating value for our
stakeholders through positive
social impact

Aligning with the

UN SDGs What Social Capital means to KPIL?

We acknowledge our duty to the society and

environment. We aim to enhance the urban
landscape and the well-being of residents and
workers in our projects. Our goal is to prioritize
fostering enduring and trustworthy connections
with our customers, partners, community
members, and other stakeholders. We aspire
to achieve a significant impact, as we believe in
making tomorrow even better than today.
Material Issues
Community engagement
How Social Capital supports KPIL's vision?
Customer Satisfaction
Supply Chain Sustainability Our CSR activities demonstrate a commitment to making
Traceability a positive difference in the world beyond financial
Sourcing responsibly profitability. By integrating social and environmental
Vendor management and
considerations into our operations, we contribute to
development the betterment of society while also reaping long-term
benefits for our stakeholders and the planet.

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Management Approach

As a socially responsible corporate, we communities, empower youth, and bridge

have deeply integrated the goals of gaps in access to essential resources. Key Highlights: FY 2022-23
long-term social impact and systemic We have been implementing a range of

~49,000+
changes, the well-being of our developmental programs to serve the
partners, and customer delight into communities around our manufacturing
our strategic framework. We recognize units/plants and remote project sites and
beneficiaries covered under
the multifaceted challenges faced by address some of these imbalances. With a
healthcare initiatives
communities in India. To drive lasting focus on long-term solutions and a belief
social impact and systemic change, in collective action, KPIL strives to create

K 8.87 Crore
we have established the Kalpataru a positive and equitable society in India.
Foundation and the Kalpataru Welfare
Trust. Through these entities, we identify From the FY22-23 budget, the Company
and address key areas of need, such as spent H 8.87 Crores for CSR initiatives Spent on CSR initiatives
Healthcare, Education, Environment, and towards healthcare, education and skilling,
Community development. By collaborating animal welfare & environment and need-
with stakeholders and leveraging based rural interventions.
partnerships we aim to uplift marginalized

Corporate Social
Responsibility (CSR)
KPIL's long-term vision focuses on of society across various geographies
empowering marginalized and vulnerable to create opportunities for catalyzying
communities with a view to enable them community well-being. The essence of
to improve their quality of lives. Our CSR the Kalpataru Spirit is deeply ingrained in
efforts foster transformative change our core values as we strive to maximize
through innovative and sustainable social impact for those in need.
solutions. We partner with all segments

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Kalpataru Projects International Limited
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Social and
Relationship Capital

Healthcare

Project Name – Kalpa Arogya Seva

(KARE) & Swasthya Abhiyan

Key Highlights: FY 2022-23

49,000+
beneficiaries from marginalized and
vulnerable communities

The healthcare interventions

implemented under the project
primarily concentrated on delivering
a comprehensive range of healthcare
services, encompassing preventive,
promotive, and curative aspects.
These interventions were aimed to
address the health needs of the target

600 36,019
population by focusing on proactive
measures to prevent illnesses, promote
health and well-being, and provide
beneficiaries were provided communities served by Kalpa Seva
curative treatments when necessary.
cataract surgery Aarogya Kendra (KSAK)
The intervention includes running of
subsidised dispensaries, Kalpa Seval
Aarogya Kendra (KSAK) in Gandhinagar Our community healthcare interventions
& Khorpa village near Raipur. Both the expanded its outreach to ~2,600 in
dispensaries are well equipped with rural areas by partnering with the
medical equipment like X-Ray machine, Parkinson's Disease and Movement
dentails set-up, etc and witnessed more Disorder Society to raise awareness
than 30,000 needy population. A 24 and provide training on healthy aging
hour run MRI centre is an extended arm and Parkinsons disease. More than
of the KSAK Gandhinagar. This MRI 600 cataract surgeries were conducted
centre completed 1 year in 2022 and saw through Vision Foundation of India &
a considerable impact in the community company also provided support towards
with more than 8,500 annual scans early diagnosis of cancer in 30 pediatric
conducted. The patients benefitted from cases through Tata Memorical centre.
the MRI centre were from the low income
strata of society.

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The Company also enhanced the

healthcare infrastructure by way of
providing medical equipment like
X-Ray machine, Sonography machine,
etc. to charitable & government
run health centres. Rural healthcare
infrastructure was strengthened by way
of constructing a sub-health centre in
village in Maharashtra that will help
cater to the needs of villagers within
an 8-10 km radius.

Education and Skilling

Key Highlights: FY 2022-23
Project Name – Kalpa Vidhya Kalpa

30,000+
Kaushal, Shiksha Abhiyan & Unnati
Abhiyan

children and youth benefitted

Education
KPIL believes that quality education solar panels, providing safe commute options through donation of school bus, setting
is a fundamental need for every child. up of Digital Smart classrooms & Mini Science Centres etc. were provided to schools
The focus of our Education initiatives is in rural & semi-urban areas across gepgraphies. Some of these solutions are helping
to provide equitable access to children transform the traditional ‘rote’ based education system to more interactive, innovative
from lesser privileged backgrounds ways of learning amongst children while focusing on interactive pedagogy of teaching
and marginalized communities. The by the reachers.
projects are aligned to the National
Education Policy (2020) and focuses on
creating a holistic educational and safe
infrastructure to children that will provide
an impetus to join and sustain through
their schooling years.

Infrastructure support like refurbishment

of toilet blocks, construction of separate
sanitation facilities for girls, providing
clean drinking water through donation of
water purifiers & coolers, installation of

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Social and
Relationship Capital

Every year, Company focuses on

developing educational infrastructure
for children and/or youth with special
needs. This year, refurbishment and
construction of educational-cum-
residential facilities in Jalgaon and
Gandhinagar was undertaken that will
benefit more than 400 beneficiaries,
including deaf & mute children, physically
challenged youth, etc.

Providing holistic educational infrastructure in Government School, Rajasthan

Research has shown that quality disadvantaged communities. While

education, coupled with a safe and the school had 450 students in FY
secure infrastructure, plays a crucial 2020-21, many needy children were
role in encouraging children to enroll on a waiting list due to limited space
in schools. The recent implementation in classrooms. To accommodate
of National Education Policy(NEP) more students while providing an
2020 underscores the importance academically driven environment,
of providing schools with decent multiple interventions were like
infrastructure to ensure a high- construction, refurbishment, etc.
quality physical environment. At were undertaken. The construction
KPIL, we are committed to creating work completed in FY 2022-23. The
quality and safe infrastructure for interventions incudes 5 additional
students to develop effective learning classrooms, upgrading sanitation
environments and inspire them to facilities for both boys & girls,
excel academically. refurbishment of infrastructure
facilities and provision for mid-day
We undertook extensive construction meals and setting up of smart classes
and refurbishment at a Government and computer labs. The upgraded
School in Rajasthan in the year FY facilities have influenced enrolments to
2020-21. The school serves children go up from 450 students in FY 2020-
from socially and economically 21 to 750 students in FY 2022-23.

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Skilling
Aligned with the Skill India Mission of
Government of India, KPIL's skilling
project focuses on providing industry-
specific training in technical trades such 420+
as Fitter, Rigger, Welder, Electrician, beneficiaries covered under Skill
etc. With a view to provide innovative development
approach to skilling, Simulation-
based Welding Lab was set up in two
Government-run Industrial Training
Institutes. This initiative will directly
benefit 90 students learning technical
trade, by offering extended Reality (XR)
based training that will enable real-
time evaluation and practice of welding
technique. By practicing in the virtual
set up, students can gain proficiency
before working on actual sites, resulting
in reduced consumable usage and
minimized fumes.

Animal Welfare
Animal Welfare and Environment
KPIL undertook various animal welfare project on Aquaculture, that is aiming
Project Name – SAVe our environment initiatives in the year. The Company to improve the welfare conditions for
save OUR animals("SAVIOUR") & collaborated with NGOs to support farmed fish. During disease outbreaks
Paryavaran Abhiyan animal welfare initiatives, including the like Argulus and Red disease, KPIL's
construction of shelters and animal emergency relief efforts saved the lives

20,000+ hospitals, as well as providing medicines

and medical aid to distressed animals.
of over 30 lakh fishes. These initiatives
reflect KPIL's commitment to animal
animals benefitted Over 20,000 animals benefitted through welfare and making a positive impact in
these relief activities. Additionally, we the field.
extended our support to a research

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Social and
Relationship Capital

Environment

KPIL believes in providing sustainable

water management and equitable 1,000 villagers decade to prevent a catastrophic impact
from climate change, with deforestation
access to communities thereby ensuring benefited from water storage capacity occurring at an alarming rate. However,
a healthy and prosperous society. In there is a solution to rapidly restore lost
rural Maharashtra, we implemented a green cover in a sustainable and long-
sustainable drinking water and livelihood lasting manner. Recognizing this urgent
a Line Farm Pond was constructed in a
project. In the first phase of the project, need, Kalpataru Foundation initiated a
village in Igatpuri that will capture the
we have focused on enhancing the creation of dense forestation project in
rain water and provide water storage
capabilities of farmers from four villages Sidhwaha, Lalitpur, Uttar Pradesh as part
capacity to benefit over 1,000 villagers.
and conducted comprehensive needs of the environmental initiative.
assessment covering a population of According to leading scientists and the
10,006 villagers. As part of the initiative, United Nations, the Earth has less than a

Plantation through the Miyawaki technique under Paryavaran Abhiyan

Utilizing the Miyawaki technique, a and environmental revitalization.

total of 9,000 saplings representing Additionally, the project aligns with Need-Based Community Development
71 different species were densely the Indian government's Green India
Project Name – Kalpa Gramodaya &
planted across a 4,000 square meter Mission and National Action Plan
Unnati Abhiyan
area. To ensure the use of renewable for Climate Change, which focus on
energy, a solar pump was installed for protecting, restoring, and expanding KPIL believes in developing communities
watering the plants. This project aims India's forest cover in response to in and around the geographies that
to create a self-sustaining forest within climate change through plantation we work in with an aim to bring
three years while addressing various activities in both forest and non-forest a positive impact leading while
ecological services such as carbon areas. improving the overall quality of life.
sequestration, soil stabilization, water KPIL supported various initiatives like
and air filtration, and regulation of digging of borewells, providing for solar
water flow. The planted trees will also chimney and supported infrastructure
provide shade, absorb air pollutants, refurbishment for residential homes for
enhance green spaces, create habitats orphan, blind and elderly beneficiaries.
for wildlife, regulate stormwater, and WaSH facility was refurbished in schools
promote human well-being. in the semi-urban and rural areas near
our Project sites. Under the project, a
The Miyawaki method of forestation
community library was set up in Khorpa
has demonstrated exceptional growth
village near our Raipur Plant. The library
and survival rates compared to
will be used by villagers that will including
other afforestation techniques. This
children, women, the elderly, and youth.
project emphasizes the preservation
More than 4000 villagers will from
of local flora and fauna, maintaining
Khorpa and other villages in the vicinity
biodiversity, and actively contributing
will utilise the facility.
to climate change mitigation

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~4,800 from requirement gathering, vendor

development, RFQ management, value
Local Sourcing

To stimulate economic growth in local

benefited through multiple engineering, and awarding of the order
to successful order execution. communities around our project sites:
community interventions
As a part of the vendor onboarding • Encourages local and small vendors
Responsible Value Chain process, we conduct a comprehensive to participate in the procurement
assessment of suppliers to determine bidding process
KPIL is deeply invested in scaling the
capabilities and prosperity of our value their social, environmental & ethical
• Hire local labour and contractors and
chain partners, including suppliers, performance and ensure 100% coverage
their equipment as needed by the
contractors, and their employees, as of all partners. We ensure our partners
project
we grow our business and footprint. adhere to responsible sourcing norms
Fostering their holistic development related to emissions, safety, human • Help MSME vendors with quality and
will help us run our business seamlessly rights, and ethics, apart from the process improvements, as per KPIL
and meet customer demands efficiently. economic considerations as part of the QC standards, to minimize rejections
We have a well-defined Supplier Code sourcing procedure. Conformance to
labor principles and related laws are • Guide MSMEs on technology
of Conduct that outlines the expected
mandatory qualification requirement upgrades and productivity
behaviors of our suppliers and other
for all supplies and services. Our enhancement initiatives
value chain partners aligned with our
Group Values. The Code covers anti- major suppliers have obtained national
Repeat purchases, rate contract
bribery and HSE requirements. As part of and international certifications for
finalization, visits to supplier sites,
the onboarding process, all new suppliers environmental management systems.
review meetings to discuss product
must sign a declaration agreeing to Periodic vendor evaluations help us
specifications, and prompt payments
follow this Code of Conduct and adhere monitor and ensure supplier compliance
all assist local and small vendors in
to our anti-bribery and anti-corruption across the lifecycle of our operations.
developing capacity and capability. As
standards. part of our efforts to boost small and
ESG Considerations in Vendor Selection
medium businesses, we also create
Sustainable Sourcing
While a significant portion of our opportunities for small fabricators
As part of our ESG strategy, we have sourcing is done through large and to work inside the plant under the
established a responsive, resilient, and reputable vendors, we also engage with supervision of our engineers.
responsible supply chain that powers local and small producers around our
work sites for various project and plant- Governing structure - Redefined
our business. The consolidation of
requirements, coordination with the specific materials. These include MS
Several new sub-functions/positions
planning team to reduce material Black Annealed Wire, wooden boxes and
have been created within the group
wastage, optimization of inventory, pallets, plasma machine consumables,
procurement department to align with
maximizing equipment efficiency, bolt nuts, hardware fittings, earth wire,
the group's overall strategy. These
and managing the life cycle cost of etc. We stringently assess all materials
include the committees formed for
procured items are ways we enhance the sourced and conduct regular audits
different activities.
sustainability of our sourcing processes. to ensure sustenance and quality
These measures are reinforced consistency.
across the supply chain processes,

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Social and
Relationship Capital

Group ARC & Vendor Development Team: The

team focuses on expanding the scope of Approved
Vendor Lists (ARCs)

Centralisation of Logistics Team: The logistics

team has been centralized to enhance efficiency
and coordination in group logistics operations.

Centralised Scrap Disposal Committee: A dedicated

committee has been established to oversee the
disposal of scrap materials at the group level.

Cross-Functional Procurement Committee: A

culture of cross- functional collaboration has been
fostered by establishing a Procurement Committee.

These strategic initiatives aim to enhance operational efficiency, optimize procurement processes, and streamline decision-
making, ultimately contributing to the organization’s overall success.

Way Forward

KPIL is dedicated to serving the community and stakeholders with a strong vision and utmost effort. In order to enhance
community initiatives and create greater value, we will evaluate the impact of our CSR programs using global frameworks.
This approach ensures transparency, and accountability, and allows us to create better value for society. We are committed to
supporting education and skill development programs to empower individuals. We will continue to contribute to environmental
stewardship and actively undertake initiatives to minimize its environmental impact. Our suppliers are critical to our operations,
and we plan to incorporate ESG considerations into supplier assessments before and after onboarding. We aim to strengthen
our supplier network by conducting regular audits and implementing a robust compliance mechanism. We also prioritize
customer satisfaction and aim to provide them with an excellent experience. As we move forward, our objective is to generate a
positive and enduring influence on the communities where we operate, all while adhering to our fundamental values and vision,
and maintaining a steadfast commitment to responsible and ethical business practices that contribute to social advancement
and environmental well-being.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Natural
Capital
Promoting responsible
consumption of resources while
consistently providing exceptional
services and reducing our
environmental impact.

Aligning with the What does Natural Capital mean

UN SDGs for KPIL?

Natural resources are crucial to our operations, and therefore,

we consider natural capital as a key factor in our decision-
making process. It helps us assess our sustainability initiatives,
identify areas for improvement, and understand any risks
associated with our business. By leveraging this information,
we can develop effective strategies to mitigate those risks and
ensure responsible resource management.

How does Natural Capital support KPIL's Vision?

Material Issues
Efficient Energy Management Our sustainable business practices catalyse positive environmental
Climate Strategy and Emission impact across our operations. We are installing solar panels and
Water Management wind power units to increase the usage of renewable energy.
Rainwater harvesting systems are being set up across our plants
Waste Management and
and community areas. Through efficient waste management
Circularity
processes and the application of circular economy principles, we
Biodiversity and Land are taking efforts to responsibly recycle and reuse construction and
Rehabilitation
demolition waste whenever possible.

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Management Approach

Our long-term growth strategy focuses management system that identifies and monitors significant risks arising from our
on enhancing the resource efficiency business activities across various sectors. Our goal is to go beyond mere compliance
of our operations and implementing and proactively contribute to the preservation and protection of the environment.
initiatives to minimise our carbon
footprint. We set clear benchmarks,
implement proactive control measures, Key Highlights: FY2022-23
and closely monitor our progress in

5.1% 23.8%
reducing the environmental impact
of our activities. Our environmental
management strategy is integrated into
Reduction in GHG emissions intensity* Share of renewable energy
our operational processes, policies, and
governance systems, improving our
ability to identify and address climate-

1,09,500 KL 8.4%
related risks and opportunities.

An Environment Management System

certified under ISO 14001:2015 governs Rainwater harvested Reduction in water intensity

3
our business processes and systems.
Regular environmental audits are
conducted at our sites through third-
party entities following the rules and
regulations of the Pollution Control
20,434 MT Manufacturing plants achieved
Zero Liquid discharge (ZLD)
Board. The audit results are thoroughly Material recycled
evaluated to ensure compliance and
maintain a high level of environmental
*Note: Intensity measured is per H Crore of revenue
performance. In addition, we have
established an environmental risk

Energy Management
As an EPC company, the cost of energy
constitutes a considerable portion
of our overall operating expenses.
Therefore, implementing efficient
energy management practices
provides various advantages, including
the identification of energy-saving
opportunities, optimization of energy
usage, and reducing energy wastage.
These practices present opportunities
to achieve significant cost savings in the
long run while enhancing our operational
efficiency. To this end, we conducted an
energy audit at our tower manufacturing
plants. The findings helped us identify
areas of improvement, such as replacing
DC drives with AC ones, upgrading
traditional lighting systems to LED
fixtures, implementing energy-efficient
compressors and motors etc.

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Natural
Capital

Climate Strategy and Currently, we measure and report our

Scope 1 and 2 emissions. Our Scope
Radiant Cooling System Emission Management
1 emissions primarily stem from the
We introduced radiant cooling systems Greenhouse gas (GHG) emissions pose consumption of fuels, including fossil
in one of our processes at our B&F site significant physical and transition risks fuels and coolants, at all our sites
at Gurgaon and it has revolutionised for businesses, making it crucial to and manufacturing plants. On the
passive cooling by significantly identify and manage them effectively. other hand, our scope 2 emissions are
reducing energy consumption in Additionally, acting on climate change generated from the purchased electricity
HVAC systems. By installing a PE-X presents opportunities to innovate, gain we obtain from various electricity
pipe (Polyethylene cross link pipe) on a competitive advantage, and attract supply utilities such as state electricity
the slab over a 9,500 sqm area, we environmentally conscious customers boards, transmission companies, and
achieved passive cooling with a capacity and investors. Climate Change is distribution companies. These utilities
of 75 W/Sqm. This system fulfils 60% equally vital when considering the employ different methods to produce
of the building's cooling requirements perspectives of stakeholders such as electricity. In addition, we have identified
while reducing power consumption by customers, employees, and regulators. and mapped certain emission sources for
20%. Additionally, the slabs' slow rate The sustainability of our operations our Scope 3 emissions that occur across
of heat transfer ensures longer cooling is increasingly prioritized to meet the the value chain and are in the process of
periods. expectations and demands of our calculating the impact of these sources.
Implementing the radiant system has stakeholders. We have implemented These assessments help us identify and
reduced the building's operational robust processes to identify, assess, evaluate potential environmental impacts
capacity to 750Tr, instead of the and manage climate-related risks and associated with project execution and
900Tr required by a traditional HVAC opportunities systematically integrated operations. Moreover, we conduct
system. As a result, the connected load into our Enterprise Risk Management environmental impact assessments
witnessed a significant drop of 150Tr, (ERM) framework. The ERM covers during the project selection process,
bringing it down to 528 KW. The new all types and sources of risks and prior to the commencement of execution
system has saved us over 13 Lakh KWH opportunities and presents a holistic view to understand the environmental impact
of energy to date. of the company's risk profile. of our operations.

GHG emission GHG emission Intensity *

Scope 1 emissions (tCO2e)

FY 2021-22 46,070
5.9 5.6
FY 2022-23 50,494
-5.1%

Scope 2 emissions (tCO2e)

FY 2021-22 27,359

FY 2022-23 30,099

Total (Scope 1+ Scope 2) (tCO2e)

FY 2021-22 73,429 FY 2021-22 FY 2022-23

FY 2022-23 80,593 *Intensity – Measured refers to tCO2e per

H Crore of revenue

Note: The emission factors used for calculating GHG emissions have been obtained from the National GHG
programme and data from the Central Electricity Authority of India to account for the emissions associated
with electricity usage.

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The Company is actively monitoring

and working towards reducing its GHG
emissions and have been steadily
increasing the proportion of renewables
in our energy mix. By generating solar
power from rooftop PV solar cells and
wind mills, we have increased the share
of renewable energy to 23.8% of our
overall electricity usage.

Biomass-based power generation

15.8 MW
power generation capacity

Solar panels

1.7 MW
power generation capacity

Wind Mill

1,162 MWh
power generated

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Natural
Capital

Solar Power Units

The Company is installing solar power
panels across relevant/ economically
viable projects to cater to energy
needs in site stores, project office,
guesthouses, etc. These efforts are
mainly driven at our Gandhinagar and
Raipur plants and selected project
sites. The total installed capacity at our
plants stands at 1.7 MW. Through our
efforts, we have not only contributed to
a more environmentally friendly energy
mix by harnessing solar power, but also
demonstrated the effectiveness and 1.35 MW
feasibility of solar technology. Further, Solar power panels installed at Raipur plant
the Company has identified projects and
initiated process to install additional solar
panels across various sites.

Biomass-based power
generation
Our biomass power plants, operational
for over a decade, exemplify our
commitment to sustainability. Located
in the Rajasthan state of India, these
two plants have collectively generated
1,19,130 MWh of power annually, resulting
in the avoidance of over 100,000 tons of
CO2 emissions per year. The distinctive
feature of these plants is that they
utilise crop residue as the primary input
for power generation. With a combined
capacity of 15.8 MW (7.8 MW and 8 MW),
these plants demonstrate the effective
benefits of a circular economy by utilising
agricultural waste to produce green
renewable energy.
Biomass based power generation plant at Padampur (Rajasthan)

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Climate Change Initiatives

3 Surface water approach
Our strategic direction encourages the
Use of electric vehicles Manufacturing plants use of surface water over groundwater
As part of a pilot initiative, we have Zero Liquid Discharge (ZLD) withdrawal when working on customer
implemented the use of electric sites for civil construction, electrification,
compliant
motorcycles at selected sites, replacing and pipelines under EPC contracts.
traditional petrol-based vehicles. The Furthermore, our power generation units
initial results have been promising, have been operating solely on surface
and we aim to expand the adoption of
electric motorcycles on a larger scale
76,538 KL water for several decades.

to promote sustainable transportation Water Recycled

Waste Management
across our operations.
Waste management plans are an integral

3% Reduction Water management holds immense part of our project design process.
importance for us as we realise the This ensures that waste reduction,
pressing issue of water scarcity recycling, and reuse considerations are
Fossil fuel consumption
exacerbated by climate change. As a incorporated from the initial stages.
result, promoting sustainable practices
Thousands of farmer families benefit

100% Tracking
has become a top priority. We are actively
from our biomass plants which deploy
implementing various water conservation
sustainable waste management practices
measures, including the adoption of
of vehicle movement for fuel and use crop residue as inputs. This has
recycling, and reusing techniques. These
and efficiency enabled the farming community around
steps are part of our concrete efforts to
the plant to dispose of agricultural waste
contribute to help conserve water.
in an affordable and environmentally
Green Buildings We have installed Sewage Treatment friendly manner. It has also reduced
Plant (STP) with a capacity of 1,250 air pollution by removing the need for
We understand the significance of farmers to burn unused crop residue.
KLD and an Effluent Treatment Plant
conducting a Life Cycle Assessment when
(ETP) for neutralising diluted acid, a by-
assessing the environmental impact of We have set specific targets for waste
product of the manufacturing process,
any product or service. Our buildings are reduction, recycling, or reuse for most
at our manufacturing facilities and
built following the standards established of our projects. Our contractors are
biomass plants. The recycled water from
by the Indian Green Building Council incentivized to recover and recycle
the STP and ETP is used for gardening,
(IGBC) and the United States Green building materials by allowing them
washing rooms, ash quenching, and dust
Building Council (LEED). We use a range to retain revenues and savings from
suppression.
of sustainable construction practices for materials recovery.
the buildings and factories we build and
the civil works we undertake. Zero Liquid Discharge: Three of our Waste segregation practices are
manufacturing plants have implemented implemented at most of our sites. This
Zero Liquid Discharge systems, and 1 enables proper sorting and segregation
Water management plant discharges treated water into the of different types of waste, facilitating
government-approved water stream. recycling and appropriate disposal. We
actively engage in buying from or selling

8.4% We have developed artificial ponds along

with several Rainwater Harvesting (RWH)
to recycled products producers regularly.
Zinc ash and dross are by-products of
Reduction in water intensity structures like tubes and pits to conserve the galvanising process and are sold to
rainwater across our plants. Overall, secondary processors, who recycle and
109,500 KL of rainwater was harvested reuse them.
during the reporting year, with 40,000
KL in the Tirupati site alone.

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Natural
Capital

To deepen a culture of responsible waste Wildlife Conservation Our Environmental Policies

management, we undertake measures to and Commitments
heighten awareness and understanding As a responsible organisation, we
of regulations, techniques, and best recognise the significance of biodiversity A well-defined policy is required to
practices across our employees and in preserving harmony among people, successfully implement a reliable and
contractors through training and wildlife, and the environment. Our EHS robust Environmental Management
ongoing communications. officers undertake a special drive to System (EMS). Our Company
educate school children on biodiversity, has developed an Environmental,
environmental management, and Occupational Health, and Safety,
Biodiversity and Land sustainable practices. Sustainability Policy that outlines:
Rehabilitation • Specific roles and responsibilities
Caring for Birds of teams within the Company for
Tree Plantation implementing the environmental
Our power plants have implemented management policy effectively
We have planted 31,018 saplings a unique initiative to support bird
throughout numerous sites this fiscal • Compliance with all applicable
population as part of our ongoing efforts
year. Our entire organisation participated environmental laws and regulations
to contribute to the environment. We have
actively and contributed by planting trees hung approximately 2,000 water pots on
in our production facilities, office locations, • Evaluation of performance against the
trees in the Sawai Madhopur District of set targets
site locations, client properties, and Rajasthan, India, for birds to drink water.
community places. Our efforts resulted in These water pots provide a consistent • Actively engaging with the internal
nurturing about 1,30,000 trees. source of water for birds all year, including and external stakeholders to raise
during the hot summer months. awareness of the EHS policy and
the environmental impact of the
company's operations through various
training programmes

Way Forward

Our aim is to judiciously use natural resources while actively working

towards increasing the proportion of renewable energy in our overall
energy consumption. We are also dedicated to educating and informing our
stakeholders about environmental concerns and implementing projects that
focus on conservation and rejuvenation. Through these endeavours, we aspire
to ensure a brighter future for all.

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MANAGEMENT DISCUSSION
AND ANALYSIS

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.

1
World Economic Outlook. April 2023

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Kalpataru Projects International Limited
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GDP growth projection infrastructure and construction has further added impetus to
(%) economic activity.

During the year, the Central Government’s thrust on capital

Global Advanced and Emerging and
expenditure resulted in 63.4% growth in spending on roads,
Developed Developing
railways, and defence. It not only facilitated broad-based growth by
Economies Economies
facilitating private sector capital formation but, was also reflected
in robust performances from the manufacturing industry.
2.8 3.0 1.3 1.4 3.9 4.2

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.

2023 (Projected) 2024 (Projected)

Source: As per IMF World Economic Outlook, April 2023 data

3rd largest
In terms of purchasing power parity

Outlook Increasing Capital Expendture of Union Government

(in H lakh Crore)
According to the latest IMF projections, global growth is
estimated to slow down to 2.8% in CY23, before rebounding to

10.0
5.9

7.3
4.1

3.0% in CY24. Due to a surge in inflation and the energy crisis

following Russia’s 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
FY 2020-21

FY 2021-22

FY 2024 (BE#)
FY 2023 (RE*)

tight monetary policies.

According to the IMF, India and China are

*RE - Revised Estimates
anticipated to contribute more than 50% #
BE - Budgeted Estimates

of the world’s GDP growth in CY23.

Source: Press information bureau, February 2023

Outlook
Indian economy overview
According to the International Monetary Fund (IMF), in FY23, the
The Indian economy continues to be one of the fastest growing
major economies in the world, outpacing major emerging and Indian economy became the world’s 3rd largest economy in terms
developing economies, including China. According to the first of purchasing power parity. According to the recent monetary
advance estimates by the National Statistical Office (NSO), policy report by the RBI, it has been projected to achieve a growth
India’s economy witnessed a growth rate of 7.2% in FY23. rate of 6.5% in FY24. With a pick-up in economic activity and
While headwinds in the form of geopolitical developments a conducive demand environment, an encouraging momentum
and inflation remained, the Indian economy demonstrated has been noticed. Besides, continued growth in GST collections,
remarkable resilience. Supported by robust domestic demand growing railway freight, air traffic and encouraging PMI data
and positive investment activity, a broad based expansion has have rekindled hopes of an economic rebound. Moreover,
been witnessed. Besides, increased government spending for manufacturing activity continues to grow steadily.

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On the back of overall macroeconomic stability and favourable Industry overview

conditions for economic growth, India is estimated to be the
fastest-growing major economy. It is expected that India’s Global power transmission and distribution industry
GDP will touch USD 26 trillion in terms of the exchange The year 2022 was full of perils and promises for the electric
market by 2047. power sector. During the year, electricity consumption
continued to rise as the pandemic recovery progressed. The
Effective Capital Expenditure
costs also spiked, largely due to natural gas prices more
(in H lakh Crore)
than doubling due to global shortages, exacerbated by rising
8.4 10.5 13.7
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

Africa
FY 2022 (Actuals)

FY 2024 (BE)

In 2022, the electricity demand grew by 1.5%, down from 5.7%

FY 2023 (RE)

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
Source: Press information bureau, February 2023
generation increased by 24%. Renewable supply during the
same period increased by 2%.
The Government of India has increased the annual budget by
7.5% to H45 lakh Crore. Allocation for capital investment has
Renewables lead race in terms of generation
also increased to H10 lakh Crore, up by 33.40% from the previous
increases, followed natural gas
year. It is expected to result in a gradual upswing in economic
activity and drive the growth of the Indian economy. To further Year-on year change in electricity generation, Africa,
improve last mile connectivity, the government plans to launch 2019-2025
the Pradhan Mantri Particularly Vulnerable Tribal Group (PVTG)
mission. It has also identified 100 transport infrastructure 60
TWH

projects to enable end-to-end connectivity for ports, steel, coal 50

and fertiliser sectors. 40

The Production Linked Incentive (PLI) scheme implemented by 30

the Indian government has emerged as a crucial policy tool to 20
drive the growth of the private sector and bolster the country’s 10
economic outlook. With a focus on creating large-scale 0
companies and enhancing competitiveness, the government has -10
set a five-year target in terms of productivity and efficiency. -20
-30
Designed to promote manufacturing and reduce dependence
-40
on imports, the PLI scheme offers fiscal incentives to domestic
2023

2025
2019

2021

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 three-
fold jump from the revised budget estimate of H2,616 Crore for Coal Gas Nuclear Renewables
these schemes in FY23. Other non-renewables Net change

The Indian economy, continues to tread ahead with cautious Notes: Other non-renewables including oil, waste and other non-renewable energy
optimism and remains well on track to rebound and revive in the sources. The CO2 intensity is calculated as total CO2 emissions divided by total
generation.
days ahead.

2
Deloitte, 2023 power & utilities industry outlook

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Kalpataru Projects International Limited
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Development of average CO2 intensity, Africa, 2019-2025 clean energy transition and create a temporary framework
for accelerating the deployment of renewables. Short-term
1000 measures were also implemented to fulfil these objectives.
g CO2 /kwh

The share of renewables in the overall power generation mix

900
is expected to increase significantly in the EU, leading to a
800
decline in fossil fuel-fired generation. It is also expected to
700 minimise CO2 emissions by 28% by 2025, in comparison to
600 levels achieved in 2022.
500 Following two years of increase, CO2 intensity starts
400 to decline again from 2023
300 Year-on year change in electricity generation, European
200 Union, 2019-2025
100
250

Twh
0
200
20

20

20

20

20

20
20

20

21

22

23

24

25

150
19

100
Africa South Africa Egypt 50
0
Algeria Morocco Nigeria
-50
Tunisia
-100
Source: Electricity market report 2023, IEA -150
-200
-250
The power sector in Africa is expected to see demand growth
2019

2020

2021

2022

2023

2024

2025
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 Coal Gas Nuclear Renewables
being the largest source of electricity generation. Coal-fired
generation output is also expected to remain stable but, is Other non-renewables Net change
anticipated to decline in overall share.
Development of average CO2 intensity, Europe, 2019-2025
The changes in electricity generation, such as the decline in
500
g CO2 /kwh

coal and nuclear power and the increase in renewable and

450
gas-fired generation, have significant implications for power
transmission and distribution. As the majority of incremental 400
generation is expected to come from renewable sources, 350
this will require a significant expansion of transmission and 300
distribution infrastructure to ensure that the electricity 250
generated is transported efficiently to meet the growing
200
demand. Additionally, the shift towards renewable energy
150
sources will require a more flexible and decentralised power
grid to integrate the variable output of renewable sources. New 100
technologies and investments in smart grids, energy storage 50
systems and grid modernisation to ensure that the power 0
system remains reliable and resilient.
20

20

20

20

20

20
20

20

21

22

23

24

25
19

Europe
European Union Europe Germany
The energy crisis triggered by geopolitical tensions in Europe
France Italy Spain
resulted in a decline in electricity consumption, within the
European Union, by 3.5% in 2022. However, it is expected to United Kingdom Turkiye
rebound slightly from 2023, with an average annual growth Note: Other non-renewables includes oil, waste and other non-renewable energy sources.
rate of 1.4%. The crisis led to a shift in policy, with the European
Source: Electricity market report 2023, IEA
Commission publishing its REPowerEU plan to hasten the

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The recent energy crisis in Europe has highlighted the importance Renewable energy is expected to meet about a third of the
of electricity security, affordability and decarbonisation. To fulfil additional demand growth, with the share of renewables in the
these objectives, the new legislative framework is expected to be generation mix rising slightly below 28% in 2025. Despite this
enforced to ensure energy security in the future. It is essential to increase, the emission intensity of the region will be among the
shift towards a higher share of renewable energy, and increase highest globally at 585 g CO2/kWh. Several countries in the
electrification while ensuring affordable prices and adequate region have set carbon neutral or net zero targets and aim to
energy supplies and storage capacity.3 accelerate renewable energy capacity deployment, targeting the
addition of 50 GW of solar and wind capacity by 2030 and over
In line with the commitment to a cleaner and more sustainable 250 GW by 2050.
energy system, the expansion and interoperability of electricity
transmission and distribution networks is critical. By increasing The increase in electricity demand and the shift towards
the capacity and reach of these networks, renewable energy renewable energy sources in Southeast Asia will require
sources such as wind, solar, and hydropower can be harnessed significant investment in power transmission and distribution
and distributed to consumers more effectively. Moreover, a infrastructure to ensure reliable and efficient delivery of
focus on energy efficiency measures within the transmission electricity to consumers. The addition of renewable energy
and distribution system can provide significant benefits for both capacity, which is often located in remote areas, will require the
consumers and network providers. development of new transmission infrastructure to connect
these sources to the grid. Furthermore, the integration of
Southeast Asia intermittent renewable sources such as solar and wind into the
existing grid requires the deployment of advanced technologies
Electricity demand in Southeast Asia grew by 5.5% in 2022 due
for power system management and grid stability.
to the economic recovery in the region, followed by the reopening
of borders for international tourism. Coal, gas and renewable Latin America
energy constitute the major sources of power generation in
the region. While the share of coal-fired generation is expected Latin America has the potential to become a global leader in
to decrease slightly, the absolute generation from coal is set renewable energy due to its abundance of wind and solar power
to increase every year at an average of 4%, till 2025, led by potential. Brazil, Chile, Colombia, and Mexico lead the region in
capacity additions in Indonesia and Vietnam. operating utility-scale solar and wind farms, with a combined
capacity of over 57 GW. Brazil, Chile, and Colombia continue to
Year-on year change in electricity generation, in Southeast increase their renewable energy development.
Asia, 2019-2025
Latin America has announced a significant amount of utility-
80 scale solar and wind capacity, in pre-construction, or under
Twh

60 construction projects, totalling over 319 GW of power. If all the

projects are realised, the region’s large-scale solar and wind
40 power capacity could increase by over 460% by 2030 compared
20 to the current capacity of 69 GW.4

0 High solar irradiance and offshore wind development potential

of most countries in the region bolster its ability to produce
-20
renewable energy. The leaders in utility-scale solar and wind
-40 attribute their success to established energy auctions, private
investment, the economic potential of green hydrogen exports,
-60
decreasing installation costs, and policy responses to climate
2019

2020

2021

2022

2023

2024

2025

change. However, Mexico’s progress has been hindered by recent

regulations proposed by the CRE that exclude net-metering
Coal Gas Nuclear Renewables compensation for medium-voltage distributed generation
projects, making it less profitable for players to sell energy back
Other non-renewables Net change to the grid. This will likely delay the payback period and create
uncertainty, leading to a slowdown in new distributed generation
Note: Other non-renewable includes oil, waste and other non-renewable energy installations.
sources.

Source: Electricity market report 2023, IEA 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.

European Parliement Research Service – Report on Reforming the EU electricity market

3

4
Americas Market Intelligence

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As these economies increase their utility-scale solar and wind The region’s electricity consumption is expected to increase in
power generation, there is a need for an efficient and reliable the forecast period of 2023-2025. It will be primarily supported
transmission and distribution infrastructure to transport the by surging GDP and higher public spending by the region’s
electricity from the generation sites to the consumers. The leading oil and gas exporters, amid the current levels of high
success of renewable energy projects is also affected by policies energy prices. Power generation emissions are predicted to
related to compensation for distributed generation projects, such
drop by 2% from 2022 to 2025, reaching around 710 Mt CO2.
as net metering. Without fair compensation for selling excess
Significant decrease in emission is also expected in the UAE,
energy back to the grid, the profitability and viability of distributed
Israel, and Saudi Arabia due to the growth of renewables, coal
generation installations are negatively impacted, which can slow
down the growth of renewable energy in the region. phase-out, and reduction in oil-fired generation.

Middle East and North Africa (MENA) The increasing demand for electricity in the Middle East and the
shift towards nuclear and renewable sources of energy highlight
Electricity consumption in the Middle East grew by 2.6% in 2022, the importance of efficient and reliable power transmission and
driven by population growth, rising demand for cooling and water distribution systems.
desalination, and energy-intensive industries. This demand is
expected to continue at a slightly reduced rate in the 2023-2025 Australia
forecast period, supported by surging GDP growth and higher
public spending by the region’s leading oil and gas exporters. Australia Energy Market Operator (AEMO) has published in their
Several projects to enhance regional interconnections, including a 2022 Integrated System Plan (ISP), which outlines the investment
150 MW line from Jordan to Iraq, a 3 GW interconnection between needed to shore up the future of the National Electricity Market
Saudi Arabia and Egypt, and a 1.8 GW direct link between Iraq (NEM) during the next 30 years. As part of its call for action,
and the GCC grid, are progressing. CO2 emissions from power AEMO states more than $12.7 billion of investment in new
generation in the region is expected to decrease by 7% in 2025, transmission lines should soon begin to ensure electricity supply
compared to 2022, due to the declining share of coal and oil in is secure during the next decade. The report also recommends
the total energy mix and an increasing shift towards nuclear and speeding up five key transmission projects in NSW, Victoria and
renewable sources of energy.
Tasmania – HumeLink, VNI West, Marinus Link, Sydney Ring
Annual emissions from power generation in 2022 increased and New England REZ Transmission Link. It will provide valuable
marginally by approximately 0.7%. This slight uptick was mostly insurance against coal-fired power stations closing sooner than
due to higher emissions from gas powered sources. However, currently planned. AEMO expects 60 per cent of the eastern
it was counterbalanced by decreasing emissions from both coal seaboard’s coal fleet will exit the electricity grid by 2030, with
and oil-fired power generation. the last remaining plant to be closed by 2042. The ISP also
Year-on year change in electricity generation, Middle East, estimates Australia’s eastern states will need at least 10,000 km
2019-2025 of new transmission lines to link up a nine-fold expansion of wind
and solar farm capacity by 2050.
80
Twh

The 2022 ISP states Australia’s energy transformation based

60
on an ‘optimal development path’ of essential transmission
40 investment that will efficiently enable low-cost renewable energy
to replace exiting coal generation. These transmission projects
20 are forecast to deliver A$28 billion in net market benefits,
returning 2.2 times their cost of A$12.7 billion, which represents
0
just seven per cent of the total generation, storage and network
-20 investment in the NEM.

-40

-60
2019

2020

2021

2022

2023

2024

2025

Coal Gas Nuclear Renewables

Other non-renewables Net change

Note: Other non-renewables include oil, waste and other non-renewable energy sources.

Source: Electricity market report 2023, IEA

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 Corporate Overview Management Reports Statutory Reports Financial Statements

The Australian Energy Market Operator’s electricity outlook: Step Change Scenario up to 2050

300
Capacity (GW)

250

200

150

100

50

0
23

24

25

26

27

28

29

30

31
32

33

34

35

36

37
38

39

40

41
42

43

44

45

46

47

48

49

50
20

20
20
20

20
20
20

20
20

20

20

20
20

20

20

20

20

20
20

20

20
20

20
20

20
20

20
20
Distributed PV Utility-scale Solar Wind Distributed storage Dispatchable storage Hydro Gas Coal

Note: GW= gigawatt; PV = photovoltaics. Dispatchable

Source: AEMO, (2022a). Capacity

Grid modernisation Grid flexibility

Utilities across the globe are Despite supply chain constraints,

increasingly planning to roll the implementation of battery
out the next wave of advanced storage is estimated to increase.
metering infrastructure (AMI)

Trends in the
Transportation
industry
Decarbonised fuels
electrification
Companies in the power and
Utility planning for the utilities sectors see value in
expansion of electric vehicles clean hydrogen.
is receiving more attention.

Source: Deloitte, 2023 power and utilities industry outlook

Outlook
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.

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Currently, the majority of the energy generated as electricity, According to the International Energy Agency (IEA), by 2025,
which accounts for 62%, is derived from fossil fuels. However, the share of power generated from renewable sources will reach
in order to mitigate the effects of climate change and move one-third of the total global electricity output. This signals
towards a more sustainable future, it is necessary to drastically a huge move towards clean and long-term energy sources.
reduce this percentage to almost zero 5 Despite facing some setbacks due to geopolitical tensions
and trade-related uncertainties, the growth of solar energy

35%
capacity is expected to persist over the coming years. In fact, it
is anticipated that the world’s solar power generation will exceed
one terawatt by 2023, reflecting a significant milestone in the
Of global power will be met from renewable capacity by 2025
expansion of renewable energy technologies.6

Renewables growth dampens fossil fuel-fired generation from 2023 to 2025

Year-on-year global change in electricity generation by source, 2019-2025

1200
Twh

1000

800

600

400

200

-200

-400

-600

-800
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
2019
2020
2021
2022
2023
2024
2025
Coal Gas Nuclear Renewables

Coal Gas Nuclear Renewables Previous forecast (July 2022)

Source: Electricity market report 2023, IEA

Renewables will make up 35% of the power generation mix by Government has allowed 100% FDI in the power sector, which
2025, up from 29%, leading to a drop in coal and gas-fired has boosted FDI inflow in this sector.7
generation and a plateau in global CO2 emissions. China and
the EU is expected to lead the way with increased government The Government of India launched the reform-based and
spending on renewables. Nuclear output is also likely to grow by results-linked revamped distribution sector scheme with the
3.6% annually, mainly in France and Asia. objective of improving the quality and reliability of power supply
to consumers through a financially sustainable and operationally
Indian power transmission and distribution industry efficient distribution sector.

India is considered to be the third largest producer of renewable The Revamped Distribution Sector Scheme (RDSS) was
energy in the world. The country gets nearly 40% of its installed developed in collaboration with several Ministries and Distribution
electricity capacity from non-fossil fuel resources. The push for companies (DISCOMs) through a consultative process. The
green energy has reduced the emission intensity of GDP by scheme has an outlay of H3,03,758 Crore and estimated Gross
24%. This poses a big challenge for the power grid sector, as Budgetary Support from the Central Government of H97,631
it is increasingly powered by a renewable source of energy. The 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

5
Economist Report – The ultimate supply chain
6
BDO report: 2023: The near future of renewables
7
Ministry of Power – National Electricity plan
8
Ministry of Power – Reforms in Power sector

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

4.5X Increase in Expenditure on Energy in last 9 Years

Expenditure on Energy
(in H thousand Crore)

94.9
70.9
53.6
45.4

43.5
42.1

32.7
30.9
21.1

2023-24 (BE)
2022-23 (RE)
2019-20

2020-21
2015-16

2016-17

2017-18

2018-19

2021-22

Source: Union Budget, 2023-24

Outlook offshore wind evacuation and battery energy storage capacity.

According to MoP, this comprehensive plan is projected to
The sector is experiencing significant transformations in provide investment opportunities for both Renewable Energy
terms of demand growth, energy mix, and market operations. Developers as well as Transmission Service Providers, making
The government's many projects and schemes aim to ensure India one of the most attractive destinations for investment in
consistent access to adequate power at all times, while Renewable Energy.
simultaneously advancing the clean energy transition by
reducing reliance on fossil fuels and ushering in a shift towards It is being further developed to attract more FDI in the
more eco-friendly, renewable energy sources. upcoming fiscal years. The government has also planned the
addition of approximately 16,673 MW of hydroelectric capacity,
India has set a target of installing 500 GW of non-fossil fuel- which is expected to be commissioned by 2030. Strong demand,
based electricity capacity by 2030, with the aim of generating supportive policies, and a growing emphasis on infrastructure
cleaner fuel comprising 50% of the total installed capacity. To by the government are expected to boost future investments in
achieve this ambitious goal, the Ministry of Power has constituted the sector.
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 500 GW
systems for High Voltage Direct Current Transmission corridors, renewable energy capacity by 2030 According to Ministry of Power
765 kV ac lines, 400 kV lines, and 220 kV cable, as well as

Ministry of New and Renewable Energy

9

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Construction and infrastructure industry 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
Infrastructure development has been an integral part of the entered the market. The positive momentum was driven by
government’s plans and policies due to its importance in steering strong sales and favourable economic conditions, prompting
the Indian economy towards the $5 trillion mark. developers in the top seven cities of India to launch a flurry of
new residential projects. Compared to the previous year, there
Residential and commercial buildings
was a remarkable 81% year-on-year increase in the number
In 2022, the residential sector experienced strong demand in the of new launches in 2022. As of Q4 2022, unsold inventory
form of decade-high sales of 215,000 homes in top seven cities. in the seven major cities of India rose by 1.8% Q-o-Q due to
Sales increased by 68% YoY with more than 50,000 units sold new launches surpassing sales, with Mumbai, Bengaluru, and
in each quarter despite rising mortgage rates, property prices, Hyderabad contributing 63% to the unsold stock, but the years
and global headwinds. It further demonstrated the industry's to sell (YTS) declined from 3.1 years in Q3 2022 to 2.9 years in
prominence as one of India's fastest-growing industries. Despite Q4 2022, reflecting strong sales growth.11
challenges, consumer sentiment remained positive, and the
residential market has set unprecedented benchmarks.10

10
NBM&CW Infra Construction & equipment magazine
JLL Residential Market Update Q4 2022
11

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 Corporate Overview Management Reports Statutory Reports Financial Statements

While office markets across the globe have been struggling A positive outlook is projected for this segment in the upcoming
with a slowdown in economic activity due to inflation and the years as it is backed by favourable government policies and good
threat of recession, India's economy has remained stable and economic growth.
has even emerged as the fastest growing major economy in the
world. This stability is reflected in the relatively steady occupier Outlook
activity observed in the Indian office market, with a modest 5% Post-pandemic, developers are adjusting their strategies to
YoY growth seen in the 1.05 million square metres (11.3 million meet changing homebuyer preferences and product metrics,
square feet) of area transacted during Q1 2023. emphasising efficiency, customer-oriented projects, sustainable
Bengaluru was the most active market during the quarter, and green buildings, and health and well-being aspects. In
accounting for 31% of the total area transacted with a addition to affordable and mid-segment homes, demand from
transacted volume of 0.33 million square metres (3.5 million the premium segment is also rising, with established developers
square feet). Meanwhile, Mumbai saw a substantial 132% YoY launching projects in prime locations. Furthermore, there is a
growth in occupier activity during Q1 2023, backed by big-ticket growing demand for larger homes with quality amenities.
leases signed by flex space, BFSI, education, and e-commerce The real estate market has shown a slight softening due to
occupiers. The three largest markets - Bengaluru, Mumbai, macroeconomic headwinds, causing delayed decision-making by
and NCR - accounted for 73% of the area transacted and businesses. However, India's office market is expected to remain
experienced positive YoY growth. Flex spaces remained popular, robust, driven by various segments such as flex, healthcare-
constituting 29% of the transacted space during Q1 2023, with life sciences, GCCs, and manufacturing or industrial, along
Bengaluru being the most active market for flex space operators, with its leadership position in the global tech ecosystem. The
accounting for 50% of the total space transacted by the sector. office demand is expected to remain similar to 2022 and around
The Other Services sector companies were the most active, 58-60 million square feet of supply is lined up for the next 12
while Information Technology and BFSI sectors each accounted months. The global headwinds may stifle demand in the short
for 16% of occupier activity. term and may lengthen decision-making times by customers.
During Q1 2023, 0.46 million square metres (4.6 million square Going forward, real estate planning will focus on talent mobility,
feet) of office space was completed, with the NCR accounting healthy workplaces, and employee value proposition.12
for 45% of the office space delivered during the quarter. The Urban infrastructure
only other market that saw a significant amount of office space,
0.12 million square metres (1.3 million square feet), being made The government has demonstrated a strong commitment to
available was Bengaluru. However, the limited deliveries during fostering infrastructure development, particularly in urban
the period helped keep vacancy levels across the eight markets areas, as a means to drive economic growth and employment.
at a healthy 16.4% compared to 17.3% a year ago as per Knight Evidencing this commitment, there has been a substantial
Frank Office and Residential market report. increase in capital investment outlay for three consecutive
years, with the current year's outlay reaching H 10 lakh Crore,
Number of units in the top 8 cities 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
80,078

80,270
69,687
82,632

97,636

87,299
73,691

79,126

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.
Q4 CY22

Q1 CY23
Q3 CY22
Q2 CY22

Launches Sales

Source: Knight Frank Residential Report April 2023 JLL – Q4 FY22 Office market update
12

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Airports

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 world’s 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.

3rd 100
Largest aviation market Airports by 2024

Inauguration of various greenfield airports/terminals

Donyi Polo Airport,

Itanagar

Deoghar Airport

Manohar International
Airport, Mopa, Goa

Terminal -2 Bengaluru
International Airport

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

Metro

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

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 Corporate Overview Management Reports Statutory Reports Financial Statements

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 India’s 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.

National Highways
(in KM)
1,26,500

1,32,500

1,44,955
1,38,376

1,41,345
1,01,010

1,14,158
97,830
91,287

1,60,000

1,40,000

1,20,000

1,00,000

80,000

60,000

40,000

20,000

0
2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2020-21

2021-22

2022-23

Source: Annual Report, 2022-23 MoRTH

18.97 km
National highways constructed per day

Article in Economic Times

13

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The Government of India has allocated H 111 lakh Crore (US$ 1.4 initiatives and future projects such as the National Infrastructure
trillion) under the National Infrastructure Pipeline for FY 2019-25. Pipeline (NIP) and Smart Cities Mission are expected to create a
The roads sector is likely to account for 18% capital expenditure significant market for construction equipment manufacturers and
over FY 2019-25. developers. Additionally, the growing demand for environmentally
friendly materials and sustainable technologies, coupled with
The National Highways have a total length of 1,44,955 km, which a focus on creating sustainable structures such as the Energy
in totality serve as the arterial network of the country. The road Conservation Building Code (ECBC) and Leadership in Energy and
network in India is approximately 63.32 lakh km, making it the Environmental Design (LEED) certifications, is likely to be a key
driver of growth in this sector.
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 2022- Increase in capital investment outlay by
23. The allocation for the Ministry of Road Transport and Highways
in the union budget has increased by 36% with around H2.7 lakh 33% to K 10 lakh Crore
Crore for FY24. It is expected to support the increased road project
execution target of 14,500 kilometres against 12,000 km in FY23.
Increased in Capex amount to

3.3% of GDP
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

Railway Sector
India has initiated 55 port connectivity projects to improve last-mile
connectivity to all major and non-major ports in the country. Out of The Indian Railways is the largest rail network in Asia and the
these, 8 projects have been completed, 14 are being implemented, world’s second-largest entity under a single management. India
13 are under the bidding process and 20 are yet to be awarded. has the fourth-largest railway system in the world, behind only
Upon completion, 45 maritime ports will have National Highways or US, Russia and China.
4 Lane+ connectivity.
Budget allocation for the Indian Railway

Capex: Driver of growth & jobs

Highest-ever total outlay for indian railways

Outlook C 28,174 C 1.5 Lakh C 2.4 Lakh

Crore Crore Crore
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
FY2022-23
FY2013-14

FY2023-24

Ministry of Road Transport and Highways, India is building roads

at a record rate and the country’s national highway network will
expand by 37% in the next two years.

The positive prospects of the Indian infrastructure and construction

Source: Minister of Railways, Government of India
sector in the coming decade are due to the government’s

ICRA Report
14

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Railway electrification On the infrastructure expansion front, H 318 billion has been
(in KM) 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

55,622
14,856

45,881
19,607

34,319
21,801
billion to bridges, tunnel works and approaches. Moreover, the

9,968
3,706

5,345
388

748

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

FY 23-24 Railways Budget Allocation

(in H Billion)

307 173

13
FY1951

FY1961

FY1971

FY1981

FY1991

FY2001

FY2011

FY2014

FY2019

FY2021

FY2023

Source: Ministry of Railway, Government of India

318
46
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
New Lines Gauge conversion Doubling works
Railways during FY23, the railways achieved electrification of
Bridges, turnnel work & approaches Track renewals
6,542 route kilometres (RKMs), which is the highest in the
history of the Indian Railways. As per Ministry of Railways, Source: Union Budget 2023-24
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
Semi-Speed and High-Speed Rail
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 15+ Vande Bharat Express operational
more energy-efficient and eco-friendly mode of transportation
as per Ministry of Railways. With its impressive progress, the 400 Trains in the next 3 years
Indian Railways is well on track to achieve its vision of being a
sustainable and eco-friendly transportation system. The Vande Bharat Express is an indigenously built semi-
high-speed train under the make-in-India initiative. It
Indian Railways is developing and creating technology in areas
is also allowing the country to move ahead towards its
such as signaling and telecommunication with 15,000 kms
self-reliance policy. This has reduced the journey time
being converted into automatic signaling and 37,000 kms
by 25% to 50% on the routes where it is currently
to be fitted with ‘KAVACH’, the domestically developed Train
operational. As per Ministry of Railways, the Government
Collision Avoidance System
of India is also developing the Vande Bharat Express 2.0
Government Budget for Railways FY23-24 with further enhancement. The government is expected
to operate 35 Vande Bharat Express by 15 August 2023
In the Union Budget 2023-24, the Ministry of Railways received
an allocation of H 2.41 trillion. Regional Rapid Transit System (RRTS)

Of the total allocation in 2023-24, H 376 billion has been According to NCRTC , Regional Rapid Transit System
allocated to rolling stock and H 42 billion to signalling and tele­ (RRTS) is a high-speed rail-based mass transit system
communication. that connects multiple cities or regions within a
country. It is designed to provide fast, safe, reliable, and

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

comfortable commuting options for people travelling without extra recurring revenue expenditure. It has been
between different regions. The National Capital Region provided in more than 67 block sections in FY23, totalling over
Transport Corporation (NCRTC) will receive H 3,596 700 block sections.
Crore for the country’s first Regional Rapid Transit
System (RRTS) project. 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.

Outlook
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 Plan’s target of increasing the share of

Upcoming corridors freight traffic by rail, from 27% to 45%, by 2030 is being
Corridors being developed under Delhi – Faridabad – Ballabgarh – Palwal
pursued through the construction of Dedicated Freight
RRTS Phase 1 Ghaziabad – Khurja
Delhi – Ghaziabad – Meerut Ghaziabad-Hapur
Corridors (DFCs) and various strategies implemented by Indian
Delhi – Gurugram – Rewari – Alwar Delhi - Bahadurgarh – Rohtak Railways. Additionally, policies like the Gati Shakti Multi-Modal
Delhi – Panipat Delhi-Shahadra-Baraut
Cargo Terminal and schemes like the Automobile Freight Train
Note: The above map is for illustrative purpose and it is not intended to be used Operator are attracting private investment in developing cargo
for reference purpose.
terminals and special wagons. These measures will make rail
transportation more competitive and increase the market share
Signalling and Telecommunication
of railways in the freight segment.
The Indian Railways has implemented Automatic Block Signalling
Water infrastructure
(ABS) as a cost-effective solution to increase line capacity
on high density routes. During FY23, the railways upgraded Water Vision 2047
530 kilometres with automatic signalling, which is a 143.12%
increase from the previous year’s figure of 218 kilometres as According to the latest updates from the Central Pollution Control
per Ministry of Railways. This achievement marks the highest Board, the country treats less than 50 % of the waste water
number of automatic signalling upgrades in the history of the generated. Bridging the gap between recycling and reusing
Indian Railways. The Ministry of Railways has recently allowed treated wastewater, as well as adopting new technologies is the
private players to install towers on land owned by the Indian need of the hour.
Railways and extend their telecommunication services.
According to Ministry of State for Jal Shakti, by 2047, with
During the year the Indian Railway has undertaken the comprehensive water management practices and new
following initiatives technologies, India could ensure access to water from an
improved source, free of contamination and available when
Centre of Excellence for Modern Signalling: The government needed, to all households across India. Meanwhile, to improve
has established the ‘Centre of Excellence’ for modern signalling water re-use rates and reduce aquifer pollution, it could aim to
at Secunderabad. It is aimed at providing expertise and increase the share of wastewater treated from 25–30 percent
technical inputs through competence building, research, design, currently to 90–100 percent which is in line with global best
and standardisation. Standard typical circuits for Electronic practice.
Interlocking Version 2.0 has been issued for use in all future
installations up to 100 routes to improve efficiency in signal India could also reduce its non-revenue water rate, including
design and circuit approvals. water leaks and unbilled water, from about 30–35 % in 2021
to around 10–15 % by 2047, in line with Asia’s highly efficient
Intermediate Block Signalling: The provision of Intermediate water systems.
Block Signalling (IBS) has been useful in enhancing line capacity

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 Corporate Overview Management Reports Statutory Reports Financial Statements

According to India Infrastructure Research, over 700 mld of

industrial desalination capacity is expected to come up. Of this, Over 58 Crore
around 370 mld is expected to be added in Gujarat, followed People now have access to clean
by Andhra Pradesh (194 mld), Tamil Nadu (102 mld), Karnataka drinking water through taps at home
(30 mld), Odisha (20 mld) and Maharashtra (10 mld). For
desalination plant, around H 50 billion worth of investment is
anticipated to be required. Government Initiatives
Jal Jeevan Mission
In terms of technology, RO-based plants of over 17 mld SWRO-
based plants of 10 mld and other technology-based plants (such The Jal Jeevan Mission aims to provide safe drinking water to
as membrane technology and hybrid technology) of around 10 all rural households in India by 2024, with a focus on individual
mld are anticipated to be set up household tap connections and source sustainability measures
such as greywater management, water conservation, and
About Jal Jeevan Mission
rainwater harvesting. The mission will prioritise community
The Jal Jeevan Mission (JJM) is being implemented under the involvement and education through Information, Education,
State Water and Sanitation Mission, which is already functional, and Communication (IEC) initiatives to promote a collective
and different sources, including rainwater harvesting, have been commitment to water management.
tapped. It was announced in August 2019. JJM envisages supply
Namami Gange Programme
of 55 litres of water per person per day to every rural household
through Functional Household Tap Connections (FHTC) by The Namami Gange Programme, the flagship scheme of the
2024. It is under the Ministry of Jal Shakti. central government, is at an inflection point where all the
groundwork that has been done in the past few years has
Jal Jeevan Mission: Over 12X increase in outlay since now accelerated the government’s efforts. There has been
FY 2018-19 measurable progress in terms of reduction in pollution in the
(in H thousand Crores) river Ganga and its rejuvenation

The larger vision of government is now to improve the overall

5.5

70
63

55
10

ecosystem of the Ganga basin. In terms of the number of projects

11

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
2018-19

2019-20

2020-21

2021-22

2022-23 (R.E.)

2023-24 (B.E.)

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
Source: Press Information Bureau of India
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
Jal Jeevan Mission achieves 60% Rivers Component for inter basin transfer of water based on
field surveys and investigation and detailed studies
coverage milestone
Oil and gas

The oil and gas sector in India is one of the most significant

11.66+ Crore businesses in the nation, accounting for approximately 30% of

the country’s entire energy mix and serving as a vital economic
Rural households have tap engine. Technology has long been an important component
connections of the oil and gas business. The length of India’s gas pipeline
infrastructure increased to 22,000 km in FY23.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The demand for oil will continue to rise in the coming years, • Natural Gas consumption is forecast to increase at a CAGR
largely driven by the recovery of the global economy and the of 12.2% to 550 MCMPD by 2030 from 174 MCMPD in 2021.
reopening of various industries that have been impacted by
Covid-related restrictions.15 • Diesel demand in India is expected to double to 163 million
tonnes by 2029-30.
IEA projected India’s 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 • India’s oil consumption is forecast to rise from 4.05 MBPD
in FY22 to 7.2 MBPD in 2030 and 9.2 MBPD in 2050.
Consumption of natural gas in India is expected to grow by
25 billion cubic metres (BCM), registering an average annual Crude oil consumption and forecast
growth of 9% until 2024. Natural gas, 50-60% less polluting (MT)
than coal, will work as the transition fuel that can get India to its 600 CAGR 5.14%
ambitious goal of net-zero emissions by 2070, when the nation

500
500
aspires to be fully powered by renewable energy. By February
2026, India will invest H3 lakh Crore, or $40 billion, to expand 400

202.7
gas infrastructure — pipelines, port-based LNG (liquefied 300
natural gas) regasification terminals, city gas distribution (CGD)
200
networks and gas exploration projects.
100
Central government’s Petroleum Planning & Analysis Cell says
0
demand for gas is set to more than double to 380 million metric

FY 2040F
FY 2022
standard cubic metres per day (mmscmd) by FY30. Industry is
expected to account for 40% of this growth. Source: IBEF

Notable trends in the oil and gas sector Natural gas consumption and forecast
(MCMPD*)
Coal Bed Methane (CBM) : CBM policy was designed to be
liberal and investor-friendly. The first commercial production of CAGR 12.2%
CBM was initiated in July 2007 at about 72,000 cubic metres 600

550
per day. Production in July 2022 stood at 58.78 MMSCM. 500
174

Gas hydrates and bio-fuels: The Government initiated the 400

National Gas Hydrate Programme (NGHP), a consortium of 300
national E & P companies and research institutions, to map gas
200
hydrates for use as an alternate source of energy.
100
Bio-fuels (bio-ethanol and bio-diesel) are alternate sources of 0
energy from domestic renewable resources. These have lower
CY 2030F
CY 2021

emissions compared to petroleum or diesel.

Growth Drivers
Source: BP Statistical Review of World Energy 2019, BP Energy Outlook 2019 and
IBEF
Rising Demand
*MCMPD - Million Cubic Metres Per Day

• Energy demand of India is anticipated to grow faster than

the energy demand of all major economies on the back of FDI investments in petroleum and gas in India
robust economic growth.
• FDI inflows in India’s petroleum and natural gas sector
• Consequently, India’s energy demand as a percentage of stood at US$ 7.99 billion between April 2000-June 2022
global energy demand is expected to rise to 11% in 2040
from 6% in 2017. • India has invited global firms to invest in its strategic
petroleum reserves (SPRs) owing to the country’s rising
• Crude oil consumption is expected to grow at a CAGR of 5.14% to energy consumption. India’s share in global energy
500 million tonnes by FY40 from 202.7 million tonnes in FY22. consumption is set to rise from 7% to 12% in 2050.

IEA Oil Market Report

15

130
 Corporate Overview Management Reports Statutory Reports Financial Statements

Outlook Company is also present in the agri commodity warehousing

sector through its subsidiary Shree Shubham Logistics Limited.
According to the International Energy Agency (IEA), global oil The Company has extended its local reach in the European
demand is expected to increase by 1.9 million barrels per day
market through its strategic acquisition of Linjemontage
(mb/d) in 2023, reaching a new record of 101.7 mb/d. This
Grastorp AB in Sweden in 2019 and Latin America through the
increase in demand is largely driven by China, which is expected
acquisition of Fasttel Engenharia SA in Brazil in 2021.
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.
Power transmission
To combat rising oil costs, the Indian government plans to and distribution
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 India's gas pipeline system is
predicted to rise to 35,000 km.16
Building & Factories
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 Water

Company overview
Businesses

70 Oil and gas

Global Footprint

Founded in 1981, Kalpataru Power Transmission Limited (KPTL)

is one of the leading Engineering, Procurement and Construction Railways
(EPC) companies.

The Company offers comprehensive solutions encompassing

design, testing, fabrication, erection and construction of Urban
transmission lines, power substations, oil and gas infrastructure, 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

Financial highlights
Standalone & Consolidated Key figures:
(H Crores)
Standalone Consolidated
Particulars
FY2021-22 FY2022-23 % Change FY2021-22 FY2022-23 % 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.

Invest India- National Investment Promotion & Facilitation Agency

16

131
Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

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

Standalone Consolidated
Financial Ratios
FY2022-23 FY2021-22 FY2022-23 FY2021-22
Debtor’s 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 2022-23 Business - Wise Performance

In FY2022-23, the company witnessed a standalone revenue Consolidated Business Revenue
growth of 16% driven by strong execution and a healthy (H Crores)
order book position. Productivity improvement and project Businesses FY22 FY23 Growth
closures contributed to improved profitability. There was
T&D 6,446 6,038 -6%
strong traction in the international business as the company
B&F 3,313 4,136 25%
expanded its Transmission & Distribution (T&D), Civil, and Oil
Water 1,704 2,622 54%
& Gas businesses and forayed into new geographies. Notably, it
Oil & Gas 915 985 8%
recorded the highest-ever annual order inflow of over H25,000
Railways 1,589 1,652 4%
Crores, resulting in an all-time high order book. The company’s Urban Infra 328 403 23%
capital expenditure (CAPEX) was around H500 Crores during FY Total Core business 14,295 15,836 11%
2022-23. Furthermore, the scheme of amalgamation of JMC Others & Inter-company 482 525 9%
Projects (India) Limited with KPTL was successfully completed eliminations
in January 2023, leading to the creation of one of India’s large Total Consolidated Revenue 14,777 16,361 11%
listed diversified engineering and construction company with
a global presence and well diversified business mix with order Power Transmission and Distribution (T&D)
book of about H 46,000 Crores. T&D has been the flagship business of the Company and with
Operational highlights the present scenario of global transition towards clean energy,
the company has significant opportunity to design and deliver
Manufacturing updates
grid infrastructure upgrades that can integrate renewable
During FY2022-23, production (including outsourced) and energy sources.
dispatches of transmission line towers/structures were 122,594
During FY23 the Company has secured numerous orders of
MT and 118,258 MT respectively, as compared 148,253 MT and
transmission line and substation in international and domestic
152,580 MT in 2021-22.
markets totalling approx. H 10,000 Crores (incl. subsidiaries).
Order book The T&D business order book including the international
For the FY2022-23, on a consolidated basis, the company has subsidiaries is at a record high of around H16,500 Crores. In
received new orders of approximately H 25,241 Crores. The FY2022-23, the company completed 663 circuit km of stringing
aggregate value of orders on hand is H 45,918 Crores. of transmission towers at various locations internationally and
domestically completed 1,746 circuit km of stringing.
Geographical updates
T&D business revenues was at H 6,038 Crores in FY2022-
Geographically, the consolidated revenue of the company
23, lower by 6% on account of lower revenue booking in the
can be divided into two different segments – domestic and
international subsidiaries. During the year, Company has
international. Revenue from the domestic business was H 10,917
strengthened its position in existing and new geographies by
Crores (67%) and the international business recorded revenue
securing various high-value projects. The Company has also
of H5,444 Crores (33%) in 2022-23 on consolidated level.
During the FY2022-23, the company expanded its presence been selected as a preferred EPC partner by a major utility in
by entering three new countries—Seychelles, Madagascar, and Australia for executing a large-size EPC project for renewable
Ghana—bringing the global footprints to a total of 70 countries. integration. This is a significant achievement for KPTL which

132
 Corporate Overview Management Reports Statutory Reports Financial Statements

demonstrates the capability to manage and execute such large- has obtained qualifications to participate in bidding processes
size complex projects at the global level. In India, the Company in seven countries, which indicates the ability of company to
secured orders from Power Grid Corporation Limited (PGCIL), expand in the international markets. The business has a positive
State Electricity Boards (SEBs) and private clients outlook in both the domestic and international markets. Strong
market opportunity with estimated investment of US$150bn
Looking ahead, the Company has a huge tender pipeline of
over the next 5 years by international companies.
over H 50,000 Crores for next 20-24 months in India. In the
International market, company has strong visibility with a tender Railways
pipeline of over USD 4 billion concentrated in markets of Africa,
One of the leading EPC contractor in railways infrastructure
Latin America, Asia and Middle East.
space and cater to turnkey solutions for conventional rail line,
Buildings & Factories high speed rail and metro rail. The Railways business witnessed
a 4% YoY growth, with revenue reaching H1,652 Crores. In
B&F business of the company is into residential and commercial
FY2022-23, company successfully secured orders worth H1,557
construction services and has established a significant presence
Crores, including two significant metro electrification projects.
in southern India. The Company has maintained its leading
The business has an order book of H 3,747 Crores as of 31st
market position with repeat orders from large existing clients
March, 2023. The company maintains a cautious approach and
and added new institutional clients. For the year FY2022-
is selective in choosing bids given intense competition. Railways
23, the company has delivered remarkable growth of 25%
segment in collaboration with B&F division have ventured into
YoY, reaching H 4,136 Crores on account of strong execution
area of station development during the year FY2022-23. The
and a robust order book. The company has secured orders of
company is actively focusing on enhancing presence in key areas
H 3,755 Crores in FY2022-23 and has an orderbook of
such as metro electrification, signalling and telecommunications
~H 8,500 Crores as of 31st March, 2023. In line with the strategy
(S&T), Regional Rapid Transit System (RRTS), and High-Speed
to broaden the civil business to international markets, the
Rail. In addition to the domestic business, the company is
Company has successfully secured its second B&F project in an
exploring opportunities in the International markets.
overseas market in Africa this year.
Urban Infra
The Company is continuously enhancing its market position by
acquiring new clients and expanding its presence in key sectors In the urban infra business, company offers EPC services for
such as data centers, institutional buildings, and industrial design and construction of highways, bridges & flyovers, metro
processing plants. rail corridors stations, transit terminals & hubs. The urban
infrastructure business witnessed a 23% year-on-year growth,
Water
amounting to H 403 Crores, primarily due to the successful
Water business of the company encompasses the entire value execution of newly secured projects in FY2022-23. The company
chain of the water sector including water intake, treatment, secured orders worth of H 1,471 Crores and has an order book
storage, supply, distribution, operation, and maintenance. of H3,002 Crores as of 31st March, 2023. The Company has
Other services includes irrigation and river linking to cater to also successfully commenced the execution of the Maldives
water management needs. In FY2022-23, the company’s water integrated airport development project in FY23. The company
business revenue grew by 54% year-on-year at H 2,622 Crores also forayed into new geographies of Ghana and Maldives. The
on the back strong order growth and execution. The Company Company is actively enhancing its capabilities to secure projects
has successfully obtained orders worth ~ H 7,500 Crores and in various sectors, including metro rail, elevated roads, public
currently has an order book of ~ H 12,500 Crores as of 31st March, spaces, and airports.
2023. Large order wins are from Madhya Pradesh, Uttar Pradesh,
Environment, health and safety
Odisha and Jharkhand. To enhance its competitiveness and
effectively handle larger projects, the company is consistently The company has established a company-wide practice
investing in strengthening its capabilities. The Company is of reinforcing and maintaining the highest level of EHS
executing projects in six states across India. The prospects of standards with a dedicated approach and strong demonstrative
water division remained vibrant given 27% increased allocation commitment.
totalling to ~ H70,000 Crores in the Union Budget 2023 towards
The Company is committed to promote a safe working
the Jal Jeevan Mission (JJM).
environment by incorporating the international EHS practices
Oil & Gas into its business operations with proactive EHS monitoring for
the prevention of OSH injuries & illness to protect its employees,
The Company is one of well-established player in oil & gas
contractors, visitors and others in and around the projects.
pipeline business in India covering cross country oil & gas
pipelines, processing facilities, refineries and fertilizer plants. The Company has set the benchmark of its EOHS performance
The Oil & Gas business recorded a revenue of H 985 Crores and through adopting the best practices with commitment to comply
secured overs of H726 Crores in FY2022-23. The order book with the applicable statutory obligations and law of the land.
as of 31st March, 2023 stood at H 1,666 Crores. The Company

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The Company has been consistently encouraging its employees Audits are conducted at three levels ie site, BU and Corporate
to practice & integrate EHS in all levels of employees in the to analyse the common challenges and deviations. Depending
organization and motivate them to adopt it in to their business upon the findings, requires resources and supports are ensured
operations with aim to achieve the organizational goal of ‘ZERO to sites to enhance their EHS implementation program and raise
harm’ by successful implementation and adherence of well- the EHS standards within target dates.
defined safe work procedures.
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.
Monitoring
and Engineering control mechanism
Measurement

• Innovative fall protection mechanism through vertical and

horizontal lifelines, fall arrest System.
In-depth
Management EHS Training and
Incident
Control Organisation Development
Investigation
• Effective control on injury and fall protection through
provision of guarding and railing mechanism in work
equipment and elevated work zones.

Ensuirng • Provision and use of fall arresting safety nets as passive fall
EHS control measures during the erection of transmission tower
Excellence
• 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.
During FY23, the Company inculcated safety drives and
delegated safety ownership to line management, employees and • Implementation of Snake Guard Stick for project sites.
contractors for prevention and mitigation of incidents, with a
focused approach on the following areas: • Helmet Mounted Induction Tester and voltage detector
during work near live lines.
Process driven approach

KPTL follows a process-driven approach to maintain the highest Gang evaluation

EHS standards across its sites. It has established various
Administrative EHS process

guidelines and procedures, including daily safety reporting,

an excellent corporate EHS operational control procedure for Screening of the workmen
incident reporting & investigation guideline to identify and
effectively control the root causes of incidents. It also uses an Height phobia test
EHS dashboard to monitor performance at the site level, EHS
enforcement i.e. work stoppage guidelines whenever essential
and identifies most safety conscious employees for Safety rewards EHS induction/ regular TBT
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 Height Pass who are fit for height work
safety guidelines, disciplinary policy to maintain & sustain the
work place discipline, increase the productivity and promote a
positive EHS culture in the organization. EHS training tools

Robust EHS Review Mechanism All applicable EHS trainings are scheduled and conducted at EHS
training/induction centre as per training calendars. Required
The Company has established strong EHS review mechanism resources including experienced trainers, training modules,
at site, BU and corporate level. The Company conducts a audio presentations/ safety video, toolbox talks, meetings are
quantitative rapid EHS performance assessment of the Project provided for effective EHS trainings for employees, contractors
site for monitoring and measuring EHS performance. EHS and visitors.

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EHS LMS module on different topics to ensure effective delivery, leadership to engage in conversations with employees about
tracking and assessment of learning modules. Virtual reality their aspirations, potential, and career paths. Employees are
modules on different topics are developed to help learners gain encouraged to reflect on their approach, goals, and leadership
hands-on experience. EHS Induction movie with live working style, and build development plans accordingly.
practices are shown to learn the safety practices, effectively.
Besides, CCTV cameras are installed to track the adherence of Aspirational development opportunities
safe work practices in real-time. Weekly EHS Webinar sessions
Long term leadership development opportunities for early
are also held for all employees.
leaders (ELEVATE), future leaders (LEAP) and leadership role
holders (LDP-IIM) with a focus on building long term impactful
Human resource competencies and leadership capabilities along with Action
Learning to derive practicable outcomes of learning and group
KPTL recognises its employees as the driving force behind its mentoring /coaching. Executive coaching opportunities are
success. Its HR department is dedicated to provide its people available to senior leaders to help them grow in business and
the tools, resources, and support necessary for thriving in a functional leadership roles.
competitive environment. Through various initiatives, it fosters
a culture of continuous learning and development and promotes Training Sessions for Employees & workers
diversity and inclusion. Its efforts to attract, retain, and develop
top talent have enabled the Company to build a strong talent The company facilitates mandatory training like Anti Bribery
pipeline that fuels growth and success. Anti Corruption(ABAC), PoSH, KCoC, HR Policy related training,
Behavioural Competency Framework and Organizational Values
Learning and development etc. through the in person and virtual modes through the
following programs for employees and on roll workers:
The Company has made it a priority to cultivate a work
environment that values continuous learning and personal Swagat Orientation and Induction Program: The program
growth. It recognises the importance of investing in the is held virtually once in every two months through which the
development of its human resources and has therefore taken Company ensures that all the newly joined employees gain
steps to enhance the frequency and quality of learning and insight into corporate policies, gain an understanding of all the
development initiatives available to them. To achieve this businesses and interact with senior HR Leadership.
objective, the Company has developed a comprehensive
Learning and Organisational Development (L&OD) framework Virtual Sessions on Policies: For a greater understand
that focuses on four key strategic areas. These areas are: and clarity on organizational policies like HR Policies, KCoC,
PoSH, Behavioural Competency Framework and ABAC, virtual
Professional development opportunities programs are facilitated to reach a wider audience locally and at
international locations. Mandatory policies are also available to
The Company prioritises employee development by providing employees in the form of LMS Courses with yearly recertification
functional and technical skill-based programmes. It believes in for ABAC and one in two years certification for KCoC and POSH.
the professional growth of its employees and ensures it through
external skill and competency development programmes. Its Monsoon Training Drive: Taking advantage of the monsoon
approach includes on-the-job skill development, certification season, the Monsoon Training Drive is facilitated by the L&OD
programmes, and a monsoon training drive to encourage team, business HR teams, Quality and EHS Teams. Training on
curiosity and self-development. organization policies and guidelines are facilitated by the SMEs.
Programs are facilitated at project sites to ensure that a larger
Interventional development opportunities audience is reached in person.
The Company offers various programmes to enhance specific Rewards & Recognition
competencies and skills across all levels. It includes self-paced
learning modules, certification courses, and on-the-job skills The Company understands that our talent is at the core of
development. Subject matter experts provide training on people our organization’s growth and success. The company as one
development, strategic thinking, project management, and lean integrated Kalpataru Parivar are committed to value and
management. It also focuses on evaluation of employee skills to recognize its hard work and dedication through multiple rewards
ensure learning retention. Additionally, high-potential individuals and recognition initiatives.
are offered project management certification through SP Jain
Global School to further strengthen the Company’s talent pool. One such way the company continuously live this value of
employee recognition is by sending congratulatory letters to
Transformational development opportunities not only the employees but also the family members of those
employees who have been promoted, displaying our ideology
To build a strong talent pipeline, the Company facilitates the of Kalpataru -Parivar, to express their remarkable support,
Talent Development and Review Council. This council enables contribution, and continuous trust in the company.

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The Company also recognizes its loyal employees through long were provided consultations, medicines and other pathology
service awards for their continuous commitment to the company. tests at subsidised rate. Both the centres are complementing
In addition, the company has also recognized employees through the government run health facilities in the area.
"Exceeding Everest" awards, which acknowledges employees
who have made significant contributions to the various cost,
systems, or process improvement initiatives.
36,019 Beneficiaries
The Company ensures a human centered employee focused from marginalised and vulnerable communities
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 KPTL supported the Rashtriya Netra Yagna project of Vision
these initiatives are essential in creating a positive and supportive Foundation of India towards their mission of reducing avoidable
work environment, and it will continue to prioritize these for its blindness. The loss of sight most often results in social exclusion,
high performing and loyal talent in the years to come. making visually challenged persons vulnerable to abuse and
destitution. The quality of eye care and medical technology
Overall with an objective of recognition does not stop, this year available today is not reaching the needy communities in remote
15% of employees have been recognized throughout the year. locations of the country. KPTL identified these remote locations
Diversity and inclusion near the Project sites and supported cataract surgeries for
people from the marginalised background.
The Gender Diversity percentage increased from 3.25% to 4%

600
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
Persons underwent cataract surgeries
roles and given cross-functional exposure to reap the benefits
of gender diversity.
KPTL continued to expand its outreach towards creating
Corporate social responsibility (CSR) awareness through training of stakeholders like caregivers
and running healthy aging program on Parkinson’s disease.
KPTL is committed to becoming a socially responsible The project is being run in partnership with Parkinson Disease
corporate citizen and to make a positive difference in the and Movement Disorder Society, a Mumbai based NGO.
lives of communities and society as a whole. To do this, it has Understanding the dearth of intervention and awareness
established structured approach towards implementing need- on Parkinson disease near the villages of our Raipur Plant,
based social interventions through its CSR activities. KPTL extended the project outreach to these rural areas. The
interventions focused on creating awareness and conducting
Kalpataru Foundation and Kalpataru Welfare Trust sessions on healthy aging across Thane district in Maharashtra
(CSR implementing organisations of KPTL) and Raipur district in Chhattisgarh. 125 Organisations, 2669
beneficiaries from marginalised communities and 132 senior
The Company’s CSR activities are not limited to developing
citizens benefitted from this project.
the communities around its plant locations, but also extend
to various sites in remote locations across the country, leaving

2,801
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
Beneficiaries & elderly benefitted through outreach programme
across various geographies.

Healthcare Initiative The community health care interventions also focused on

providing initial support for diagnosis for cancer in 30 paediatric
Kalpa Arogya Seva (Project KARE) and Swasthya Abhiyan
cases, individual medical support to needy beneficiaries,
Healthcare interventions under the project focuses on providing donating wheelchairs to PwDs who belong to low income strata
preventive, promotive and curative healthcare services. The of society.
subsidised dispensary, Kalpa Seva Aarogya Kendra (KSAK)
KPTL also focused on augmenting healthcare facilities for
continued to provide specialised health services while expanding
the marginalised communities around our Plant locations and
the outreach to villages near Gandhinagar, Gujarat and Raipur,
project sites. Support was provided to set up X-Ray facility,
Chhattisgarh. This centre provided subsidised MRI scan facilities
Sonography machine and other medical equipment, etc. were
to 8,615 patients in FY22-23, the maximum number of scans
donated to charitable hospitals and government run health
in a month reaching a high of 903 scans. These beneficiaries

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 Corporate Overview Management Reports Statutory Reports Financial Statements

centres. A Community Sub-health centre was constructed in setup of Mini Science centers across 12 schools has helped
a village in rural Maharashtra. This centre will work as a spoke inculcate basic concepts of Science & Technology (Science,
reaching out to villages in 8-10km radius. Technology, Engineering & Mathematics) at a very early age
among the children in these schools. Consequently, we will see a
Water, Sanitation & Hygiene (WaSH) is a pre-requisite to human
strong inclination of students opting for Science & Technology
health and well-being. Understanding this crucial problem, KPTL
as a further study. The adoption of these projects by schools
undertook construction of public toilets in areas that witnessed
is helping transform the traditional ‘rote’ based educations
high footfall. This will ensure usage of the toilet facility and
system and moving towards more interactive, innovative ways
promote healthy practices like hand wash, etc. As a part of
menstrual health management project, sanitary napkin making of learning amongst children as well as focusing on interactive
machines has been set up in a school and rural community. This pedagogy of teaching. Various schools benefitted through
project will work towards providing sanitary napkins to young interventions like construction of sanitation facilities, donation
girls and women in rural area and small towns. 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

49,000+ special needs.

Beneficiaries covered under Healthcare

41 12
Education Initiative Digital Smart Classrooms Mini Science Centres

Kalpa Vidhya Kalpa Kaushal, Shiksha Abhiyan and Unnati

Abhiyan
30,000+
In a developing nation like India, quality education is an Students & teachers benefited from Education interventions
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 This year, KPTL also supported the Har Ghar Tiranga Campaign
2020 (NEP 2020) was introduced to ensure equitable access run by Govt of India near our office and Plant locations.
to education for all children, especially those from marginalised More than 40000 flags were distributed to individuals in the
communities. community.

40,000+
Aligned with the NEP, KPTL’s CSR activities are focused
on creating safe and holistic educational infrastructure for
children in remote areas. The goal is to provide an impetus Indian national flag distributed
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 The skilling project is aligned with the Skill India Mission of the
construction of the Government Senior Secondary High school Government of India and focuses on providing employability
in Rajasthan. linked, industry-specific training in trades like Fitter, Rigger,
Welder, Electrician, Plumbing, etc. More than 420 youth from
The work began in FY21 and was completed in FY23. Additional economically backward background benefitted through various
classrooms, sanitation facilities, Mid-day meal shades, separate training interventions including National Apprenticeship
dishwashing and handwash stations, kitchen renovation, Promotion Scheme (NAPS).
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.
420+
Youth trained in employability linked skills
With a focus on providing 21 -century skills and breaking the
st

digital divide in schools, KPTL initiated the setting up of Digital

As a part of enhancing the infrastructure in the skill training
Smart Classrooms and Mini Science centres across schools in ecosystem, efforts have been made by KPTL to set up innovative
semi-urban and rural areas of India. Through "Digital Smart Simulation-based Welding Lab in 2 Government run Industrial
Classrooms," students are taught interactively, benefiting Training Institute (ITI), benefitting 90 students directly. The
schools with skewed teacher-student ratios the most. The extended Reality (XR) based training will help students learn

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

the nuance of welding like positioning, distance, etc. which will Community Development
be evaluated on a real time basis. The students can practice as
Kalpa Gramodaya
much as possible before moving to actual site, thereby ensuring
lees usage of consumables and lesser fumes during the process. The Company has assisted in establishing a community library in
Nearby ITI are being encouraged to send their students to utilise Khorpa village, which is located near its Raipur Plant. The library
the facility so that youth can reap maximum benefit. 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.
90+ In addition, the Company has also constructed WaSH facilities
Youth across two Govt. run ITI will benefit 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
Animal Welfare and Environment infrastructure has had a positive impact on the health and
hygiene of school-going children in the area.
SAVe Our Environment Save OUR Animals (“SAVIOUR”) and
Paryavaran Abhiyan The project is also focused on need based interventions like
digging of borewells, providing for solar chimney and supported
The Company supported initiatives in the area of animal welfare infrastructure refurbishment for residential homes for orphan,
by partnering with NGOs working towards construction of blind and elderly beneficiaries.
shelter, animal hospital, providing medicines, and medical aid

4,800+
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
Beneficiaries
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. Risk management
The Company is primarily engaged in executing large and complex
EPC projects in domestic and international markets. Hence, it is

~20,000+ exposed to a variety of risks locally and globally. The Company

has a risk management committee that identifies internal
Animals in distress and external risks that are unique to the Company including
financial, operational, sectoral, sustainability (including ESG-
related risk), informational, cyber security and other threats.
Under the environmental initiative, considerable growth is seen The committee is responsible for monitoring and directing
of the 9000 saplings planted last year through the Miyawaki the application of the risk management policy. This includes
technique. The plantation is successfully moving towards being assessing the effectiveness of risk management processes and
a fully grown self-sustaining forest thereby enhancing the flora systems for risk reduction, as well as methods and procedures
and fauna of the area. 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 Company’s

9,000+ operations. The risk management committee aids the Board in

the risk management process by identifying and assessing any
Saplings planted changes in risk exposure, reviewing risk control measures and
approving remedial actions wherever appropriate.

Sustainable drinking water and livelihood project was The enterprise – wide risks for the Company and their mitigation
implemented in rural Maharashtra. The project in Phase I measures are summarised below:
built the capacity of farmers from 4 villages, conducted need Health, safety & environment (HSE)
assessment covering a population of 10,006 villagers and
constructed One Line Farm Pond in Padali Deshmukh village The company’s business is subject to extensive health, safety
that will benefit more than 1000 villagers. This line farm pond and environmental laws, regulations and standards. With the
will support farmers to store the rainwater and utilise it towards changing requirements and stakeholder expectations, it could
cultivation of crops. result in increased cost or litigation or threaten the viability of
operations.

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Mitigation Mitigation

HSE is significant for a company being an EPC player. It is To reduce the risk involved with projects, the Company has
important to comply with international and local regulations established policies and procedures. To enable timely execution
and standards, protecting the people, communities and the and optimum value generation for all stakeholders, projects
environment from harm, and the business operations from are analysed within the operational risk spectrum using best
interruptions. Policies and standards are in place to mitigate and practices.
minimise any HSE related occurrences. Safety norms are issued
and continue to be issued to reduce the risk level in high-risk Cyber security risk
areas. Systematic monitoring, a review mechanism and process
The Company is undergoing digital transformation and thus,
of compliance reporting are in place.
cybersecurity has become a key concern for the continuity of
Loss of Biodiversity business.

Loss to biodiversity is one of the risks that is continuously being Mitigation

stressed upon. Our natural habitats are being exploited leading Cybersecurity practices are being implemented under the
to endangering of various species of flora and fauna. Some guidance of the Risk Management Committee of the Company.
of these activities can have irreversible consequences on our These practices are grouped into people, process and technology
planet. Loss of biodiversity can impact the projects significantly control areas under the company-wide Cyber Security Assurance
since it can attract stringent regulatory policies that can even Framework.
lead to disruption in business operation.
Employee awareness of cybersecurity is being enhanced through
Mitigation initiatives such as online cybersecurity awareness campaigns on
To deal with these issues, the company is in process to set phishing and e-mail security. Network devices, server operating
framework for biodiversity management and follow the process systems and hardware are upgraded periodically.
of screening the area and operations that would be carried
The Company also actively monitors security logs to detect
before starting a project. The company would undertake projects
any malicious attempts and takes the necessary measures to
sustaining the biodiversity of the surrounding area and location.
mitigate the risk. Adequate data safety is ensured during its
Solid Waste Management creation, storage, transit and retrieval.

Proper disposal of waste from operations is essential for Client Counterparty Risk
environment protection and safety. Some of the waste are
This risk pertains to the counterparty will default on its
stored in secured area where substantial area of land is required.
Land availability is becoming difficult and storage of waste has contractual obligations resulting in financial loss to the Company.
its own risk as well.
Mitigation
Mitigation The Company’s major customers include government bodies
The operations of company are guided by 3R principle: reduce, and public sector undertakings. Majority of the International
reuse and recycle to manage hazardous and non-hazardous projects are funded by the multilateral agencies.
waste. Company has set up processes to recycle and manage
For private customers, the Company evaluates the
proper disposal of waste. Regular meetings and monitoring
creditworthiness based on publicly available financial information
carried out to manage waste disposal mechanism. The company
and the Company’s historical experiences. The Company’s
ensures that statutory criteria for waste management are met
exposure to its counterparties are continuously reviewed and
and follow the circular economy principle.
monitored and appropriate measures are adopted based on the
Operational Risk outcome of analysis.

The Company operates in the EPC industry and is exposed to Concentration Risk
a variety of operational risks that could result in unanticipated
delays in project execution and unplanned interruptions of Client relationships play integral part for EPC service companies.
operational operations, negatively affecting the Company's top Our business has a history of client retention and continue to
and bottom lines. derive a significant proportion of revenue from repeat business
built on successful execution of prior orders. The company has

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Kalpataru Projects International Limited
(Formerly Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

projects spread across different geographies and regions for manner. It uses a mix of its domestic and international order
each business segments. For certain projects, the client remains books scattered across several locations as a technique for
same with presence in different geographies. reducing currency risk. In order to reduce the exposure to foreign
exchange-related risk, it also uses currency-forward contracts.
Mitigation
The Company has access to well diversified sources of liquidity
The Company is exposed to the risk of revenue concentration through various consortium banking arrangements and
with top customers. Focused efforts are taken to expand the institutions. Beyond this the company relies on access to trade
client base and geographies. Over the years, our geographical finance and capital markets. It also continuously examines its
presence in 40 countries from FY2013 has increased to liquidity levels, as well as the state of the economy and capital
70 countries in FY2023. The company is penetrating to markets.
different regions where there are opportunities on account
of infrastructure development and grid integration and The Company also deploys specific cashflow management
upgradation. The Company engages periodically with external strategies and processes to monitor and review regularly and
experts and government authorities to assess potential impacts takes corrective actions, as may be required to manage the
of geopolitical situation on the projects, supply chain logistics working capital.
and commodity prices. The business development teams
People risk
are constantly scouting new clients and also undertake risk
assessment before finalizing of the projects. In terms of any old The need to maintain employee relations, attract and retain
clients, they review and assess their credit profile and payment talent, and create an engaged set of employees has become
terms. important in an environment where talent is becoming scarce.

Geopolitical and Regulatory Risk Mitigation

The Company operates in numerous geographies and faces risks The Company actively engages with the workforce on a regular
on account of protectionist policies, political dynamics, trade basis to learn about their requirements, objectives and any
barriers, sanctions, and geopolitical conflicts. potential problems. Based on ongoing employee feedback,
policies, practices, remuneration and developmental interactions
With operations in multiple geographies, the Company is are adjusted.
exposed to global compliance risks related to various statutes,
laws and regulations. It employs a methodical hiring process to attract the best
candidates in the industry. To cultivate future leaders within
Mitigation the organization, the Company offers periodic training and
The Company frequently analyses international sanctions and mentoring, grooming and provides growth opportunities.
funding to cover its exposure in the local markets. It also develops Commodity Price Variation and Currency Fluctuations
appropriate mitigation methods that address the viability of
operating in the country and strategic sourcing possibilities. The Company deals with a variety of commodities, including
The Company takes steps to adhere to all laws. It also monitors cement, insulators, steel, zinc, copper, aluminium and zinc.
the changes and ensures compliance therewith is taken care of Commodities are a significant part of the direct cost incurred
by the internal teams within the Company. The Company also by the Company for its business activities including fabrication
retains the services of subject matter experts and legal counsel of towers and erection of the transmission lines and substation.
with expertise in particular nations to provide guidance on legal Due to factors such as supply-demand mismatch, competition,
issues and compliance. production levels and taxation, they may have varying prices and
supplies.
Financial Risk
If input costs increase without adequate hedging measures,
Interest rate risk, exchange rate risk and liquidity risk are the fixed pricing contracts may adversely impact the Company's
three major financial risks. Exchange rates and interest rate profits.
fluctuations impact the Company’s finances and profitability.
Also, with businesses spread across various nations, unfavourable
The company faces project delays and adverse contractual currency fluctuations can affect the Company’s financials.
payment terms leading to increased working capital
requirements. Mitigation

Mitigation As a part of broader Risk Management Policy, the Company

has a dedicated framework to manage commodity risk. The
The Company uses a variety of fund-raising products with a Company’s business is significantly dependent on availability,
range of maturities to manage interest rate risks in a dynamic

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 Corporate Overview Management Reports Statutory Reports Financial Statements

cost and quality of raw materials and fuels for the construction behavior, improper practice, any misconduct, any violation of
and development of projects undertaken. The Company legal or regulatory requirements, actual or suspected fraud
currently manages such risk through the price escalation clause by any official of the Company without fear of punishment or
in some of the Contracts whereby the fluctuation in the input unfair treatment, appraising Senior Management and the Audit
cost is passed on to the Client. In case of firm price contracts, Committee of the Board periodically on the internal processes
the Company enters into a Commodity Forward Contract to of the Company with respect to Internal Controls, Statutory
hedge its price risk or pass on back-to-back firm price contract Compliances and Assurance etc.
to its vendor/contractor. The Company addresses the risk of
fluctuation in commodities which cannot be hedged by building The Company has Group Assurance department besides
adequate contingencies based on market trends. 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
Internal control Company conducts its businesses with high standards of legal,
statutory and regulatory compliances. The Audit Committee
The Company maintains adequate internal controls, appropriate
of the Board reviews the annual internal audit plan prepared
to the nature and size of the business, and commensurate with
by the Group Assurance department, covering core business
the scale and complexity of its operations. The Company has
operations, corporate departments as well as support functions.
implemented robust policies and procedures, which inter alia,
Corporate Audit Services conducts independent internal audits
ensure integrity in conducting its business, safeguarding of
and the significant audit observations are presented to the Audit
its assets, timely preparation of reliable financial information,
Committee every quarter along with update on implementation
accuracy and completeness in maintaining accounting records
of recommended remedial measures and agreed actions by the
and prevention and detection of frauds and errors. At the heart
management. The effectiveness of internal controls were tested
of the processes is the extensive use of technology. This ensures
during the year by the Statutory Auditors as well as by the
robustness and integrity of financial reporting and internal
external audit firm and no reportable material weaknesses either
controls, allows optimal use and protection of assets, facilitates
in their design or operations were observed. The evaluation
accurate and timely compilation of financial statements and
included documentation review, enquiries, testing and other
management reports and ensures compliance with statutory
procedures considered to be appropriate in the circumstances.
laws, regulations and company policies. It has continued its
The Company also has an institutionalized mechanism of
efforts to align all its processes and controls with global best
dealing with complaints of sexual harassment through a formal
practices.
committee constituted in line with the Company’s Policy on the
The Company has aligned its internal controls with the ‘Anti Sexual Harassment policy’.
requirements of Companies Act, 2013. The statutory auditors
of the Company have issued an attestation report on the Cautionary statement
Company’s internal control over financial reporting (as defined in
section 143 of the Companies Act, 2013). The Board of Directors This report comprises the facts and figures along with
and management at all levels of the Company demonstrate assumptions, strategy, goal, and intentions of the Company
through their directives, actions and behaviors the importance which may be “forward-looking”. The Company’s actual results
of integrity and ethical values to support the functioning of the and performance may differ considerably from those presented
system of internal control. The same is demonstrated through herein. The Company’s performance is dependent upon global
various means including, but not limited to Code of Conduct and national economic conditions, the price of commodities,
together with the Whistle Blower Policy and Anti Bribery & business risk, changes in the Government’s rules and regulations
Anti Corruption Policy for raising concerns about unethical and so on.

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Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Board’s Report
DEAR MEMBERS,

Your Directors are pleased to present the 42nd ANNUAL REPORT of Kalpataru Power Transmission Limited (“the Company”)
together with the Audited Financial Statements (standalone and consolidated) for the financial year ended March 31, 2023.

FINANCIAL HIGHLIGHTS
(H in Crores)
Consolidated Standalone
Particulars
2022-23 2021-22 2022-23 2021-22
Revenue from Operations 16,361.44 14,777.38 14,336.82 12,407.14
Profit before Depreciation and Amortization 942.49 882.15 979.33 707.53
expenses, Tax and Exceptional items
Less: Depreciation and amortization expenses 391.75 350.78 294.75 271.95
Profit before Tax and Exceptional Items 550.74 531.37 684.58 435.58
Exceptional items 90.78 184.93 54.10 63.94
Share of Profit / (Loss) from Joint Venture - (19.89) - -
Tax Expense 206.50 161.35 206.73 149.14
Profit for the period 435.02 535.06 531.95 350.38
Other Comprehensive Income (net of tax)
Items that will be reclassified subsequently to (57.16) 43.39 (48.70) 35.31
Profit or Loss
Items that will not be reclassified subsequently 1.49 0.53 1.58 0.55
to Profit or Loss
Total Comprehensive Income for the period 379.35 578.98 484.83 386.24
Other Equity – Opening balance 4,248.79 3,708.72 4,907.32 4,547.22
Add: Profit for the period 440.75* 540.30* 531.95 350.38
Less: Dividends (96.77) (34.45) (102.20) (26.13)
Less: Issue of Equity Shares - (2.71) -
Add / Less: Other Comprehensive income for the (42.34) 34.22 (47.12) 35.85
year net of tax
Add / Less: Acquisition of non-controlling interest 137.70 - - -
Other Equity – Closing balance 4,688.13 4,248.79 5,287.24 4,907.32
* Profit for the year attributable to Owners of the Company

Note: Consequent to Amalgamation of JMC Projects (India) Limited with the Company, the Financial Statements for the previous
financial year 2021-22 has been restated in accordance with the applicable accounting standard.

OPERATIONAL HIGHLIGHTS Your Company has a standalone order book of more than
H 45,900 Crores (including Linjemontage I Grastorp AB and
During Financial Year 2022-23, the Standalone revenue of your Fasttel Engenharia S.A.) excluding fairly placed bids. Your
Company increased by about 15.55% to H 14,336.82 Crores Company has received Orders in excess of H 25,200 Crores
as against H 12,407.14 Crores in the previous financial year. (including orders received by Linjemontage I Grastorp AB and
Total revenue outside India was H 3,789.66 Crores or approx. Fasttel Engenharia S.A.) in the current financial year 2022-23.
26.43% of revenues.
The consolidated revenue of your Company increased by about
The Standalone net profit for the year increased by 51.82% 10.72% to H 16,361.44 Crores as against H 14,777.38 Crores in
to H 531.95 Crores as against H 350.38 Crores in the previous the previous financial year.
financial year mainly on account of higher revenue, operational
efficiencies, productivity improvement and timely project The consolidated net profit for the year decreased by about
closures and claims. 18.70% to H 435.02 Crores as against H 535.06 Crores in the

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 Corporate Overview Management Reports Statutory Reports Financial Statements

previous financial year mainly on account of increased input AMALGAMATION OF JMC PROJECTS (INDIA) LIMITED
costs in subsidiary companies. WITH THE COMPANY
Your Company has secured highest ever order book, spread across The Board of Directors of your Company and its subsidiary JMC
multiple business areas, enabling sustainable and diversified Projects (India) Ltd. (JMC) at their respective meetings held on
growth. Your Company has achieved the following milestones February 19, 2022 had approved the scheme of amalgamation
for its various businesses during the year under review. of JMC with the Company and their respective shareholders
pursuant to Sections 230 to 232 and other applicable provisions
Transmission & Distribution: of the Companies Act, 2013 (the Scheme).
(i) Supplied 1,18,258 MTs of Transmission Line Towers The amalgamation was approved so as to bring synergies amongst
(ii) Completed / commissioned over 1,200 km of Transmission two leading organizations with unique sets of capabilities and
Lines complementary businesses in the attractive EPC markets.

(iii) Over 2,400 circuit km stringing done As per the Scheme, all the assets, liabilities, employees
etc. of JMC shall vest on the Company with effect from the
Buildings and Factories: Appointed Date i.e. April 01, 2022 and in consideration of such
amalgamation, the Company issued 1 (one) equity share of H 2/-
(i) Secured first-ever Airport project on EPC basis each for every 4 (four) equity shares of H 2/- each of JMC to the
eligible shareholders of JMC.
(ii) Completed marquee projects such as IIT Tirupati (greenfield
campus spread over 200 acres), Prestige Falcon Mall In accordance with the order dated August 03, 2022 passed by
(largest in South Bengaluru), Bagmane Helium Commercial the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad
Project in less than 12 months (G+12 structure) bench, your Company convened meeting of equity shareholders
on September 06, 2022 through Video Conferencing (“VC”)
(iii) Completed Industrial EPC Project for a steel plant and
/ Other Audio Visual Means (“OAVM”) in compliance with the
shipyard
applicable provisions of the Companies Act, 2013 and the Listing
Water Supply and Irrigation: Regulations, to consider and approve Scheme of Amalgamation
of JMC with the Company and their respective shareholders
(i) Over 4 Lakh house connections of treated drinking water under Sections 230 to 232 and other applicable provisions of
provided across cities and villages in Odisha, Bihar, MP and the Companies Act, 2013. The said Resolution was passed with
UP requisite majority.

(ii) Over 100 Overhead Water Tanks constructed across States During the year under review, the Scheme of Amalgamation
for providing treated drinking water supply was approved by the Hon’ble National Company Law Tribunal,
Ahmedabad Bench vide its order dated December 21, 2022
(iii) Multiple projects under execution under Jal Jeevan Mission
and the Scheme became effective from January 04, 2023
with portfolio of around 25 Lakh house connections
consequent upon the filing of the order with the Registrar of
Railway: Companies, Gujarat. Upon effectiveness of the Scheme, all the
assets, liabilities, employees etc. of JMC have been transferred
(i) Commissioned over 1,200 route km of Railway Electrification and vested on the Company with effect from the Appointed Date
i.e. April 01, 2022.
(ii) Commissioned over 100 route km of new Railway Track
The effect of the Scheme has been given in the Audited Financial
(iii) Secured Indore Metro and Bhopal Metro Projects Statements of the Company for FY 2022-23 and accordingly
as required under Indian Accounting Standards, the Financial
Oil and Gas:
Statements for the previous financial year 2021-22 has been
(i) Over 250 km hydro-testing of pipelines completed across restated to make it comparable.
multiple States
CAPITAL STRUCTURE
Urban Infra:
As per the terms of the Scheme, your Company had issued and
(i) Completed Tamil Nadu’s longest Elevated Corridor (> 7 km)
allotted 1,35,36,944 equity shares each of H 2/- to the eligible
in Madurai for NHAI
shareholders of JMC on January 16, 2023. The said allotted
(ii) Secured Elevated Corridor project (> 5 km) in Kanpur from equity shares are listed and admitted for trading in BSE Limited
UP Metro and National Stock Exchange of India Limited on and from
February 01, 2023.

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Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

Consequent to the above issuance, the paid-up equity share Skill Development : Multiple Supervisors and Artisans
capital of the Company stood at H 32,48,92,304/- divided into felicitated in CIDC Vishwakarma Awards.
16,24,46,152 equity shares each of H 2/- as at March 31, 2023.
Safety : Multiple awards for various projects in Buildings &
Factories, Transmission Lines & Substations, Water Supply
CHANGE OF NAME & Irrigation and Infrastructure businesses from OSHSAI,
British Safety Council, RoSPA UK, CII, CIDC, NSCI etc. Also,
The Board of Directors of the Company on April 10, 2023,
multiple appreciations received from various clients for safe
approved a proposal for change in the name of the Company
working hours achieved at various project sites.
from the existing name ‘Kalpataru Power Transmission Limited’
to ‘Kalpataru Projects International Limited’. The Company is in
process of seeking the approval of the members on the aforesaid MATERIAL CHANGES AND COMMITMENT AFFECTING
change of name of the Company. Such change of name will be FINANCIAL POSITION OF YOUR COMPANY
made effective once the approval of the Central Government is
obtained post the members’ approval. There are no material changes and commitments, affecting the
financial position of your Company which has occurred between
end of financial year 2022-23 and the date of Board’s Report.
AWARDS & RECOGNITION

Your Company has been honoured with various awards, DIVIDEND

accolades and recognitions during the year under review, some
of which are elaborated hereunder: Your Directors are also pleased to recommend dividend on the
increased paid-up equity share capital base of the Company for
Manufacturing Plant in Gandhinagar : Multiple awards the year ended March 31, 2023 @ H 7/- (350%) per equity share
received from International Research Institute for of H 2/- each fully paid up (previous year H 6.50 (325%) per fully
Manufacturing, CII Institute of Quality, Quality Circle Forum paid up share). The total dividend payment for FY 2022-23 would
of India etc. be approx. H 113.71 Crore on the increased share capital base of
16,24,46,152 equity shares as against the previous year dividend
Manufacturing Plant in Raipur : Multiple awards received payment of H 96.79 Crore on 14,89,09,208 equity shares of the
from Quality Circle Forum of India etc. besides certifications Company. The final dividend payment for the FY 2022-23 is in
by IFO – Certification Body based at Germany, and accordance with the Dividend Distribution Policy of the Company
certifications such as EN 1090 and ISO 3834-2 which are and the same shall be paid subject to the deduction of tax in
mandatory for European projects. applicable cases once approved by the members of the Company
at the ensuing Annual General Meeting.
Biomass Power Plant in Rajasthan : Received Gold Award
from Apex India.
DIVIDEND DISTRIBUTION POLICY
Transmission Lines & Substations : Multiple awards received
from Quality Circle Forum of India, Gold Excellence Awards In terms of Regulation 43A of the Listing Regulations, your
at International Convention on QC Circles - 2022 Jakarta Company has formulated Dividend Distribution Policy and the
for the case study on “Proto Inspection of Transmission same is also available on the website of the Company at https://
towers” and also on Case study on “5S Implementation in kalpatarupower.com/wp-content/uploads/2016/05/Dividend-
Construction store area”. Distribution-Policy.pdf

Railways : Multiple awards including “Achievement in The Board of Directors of your Company have recommended
Electrification in Railways” at 3rd Rail Analysis Innovation dividend within the parameters of dividend distribution policy.
& Excellence Summit, 2022, Awards for “Outstanding There was no change in dividend distribution policy during the
Contribution in Urban Infrastructure – Railway” by EPC year under review.
World etc.

Digitalization : Multiple awards including for "Operational NON-CONVERTIBLE DEBENTURES

Excellence through Digital Transformation – 2022” for
During the year under review, the Company has redeemed
Project SPARK under the “Most Innovative Practice"
Non-Convertible Debentures (NCDs) worth H 298.94 Crores
category by Confederation of Indian Industry, Technology
(includes NCDs redeemed by JMC Projects (India) Limited worth
Excellence Award from Quantic India.
H 145 Crores).

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Also during the year, your Company has issued and allotted 990 associate company upon Amalgamation of JMC Projects (India)
Nos. Repo Rate linked Unsecured, Rated, Listed, Redeemable Limited with your Company.
NCDs of the face value of H 10,00,000/- (Rupees Ten lakh Only)
each, for an aggregate nominal value of H 99,00,00,000/- During the year under review, Alipurduar Transmission Limited and
(Rupees Ninety Nine Crores Only) on private placement basis. Kohima-Mariani Transmission Limited ceased to be subsidiaries
The said NCDs are listed on Wholesale Debt Market Segment of the Company and has become associate companies.
of BSE Limited. Further, the Company has fully utilized the
A statement containing salient features of financial statements
proceeds of issue of said NCDs for the purposes as mentioned
of subsidiaries, associates and joint venture companies in terms
in the offer document.
of provisions of Section 129(3) of the Companies Act, 2013 in
Further, a liability towards 3,490 NCDs of the face value of the prescribed Form AOC-1 is annexed to Consolidated Financial
H 10,00,000/- (Rupees Ten lakh Only) each, for an aggregate Statements and hence not repeated here for the sake of brevity.
nominal value of H 349,00,00,000/- (Rupees Three Hundred
The brief details of the activities carried out by some of the
Forty Nine Crores Only) got transferred and vested on the
subsidiaries of your Company is provided below.
Company upon effectiveness of the Scheme of Amalgamation
of JMC Projects (India) Limited with your Company. Shree Shubham Logistics Limited (“SSLL”):

As on March 31, 2023, the total outstanding NCDs stands at SSLL provides agri-storage infrastructure along with
H 648,00,00,000/- (Rupees Six Hundred Forty Eight Crores a wide range of value-added services like preservation,
Only) divided into 6,480 NCDs of the face value of H 10,00,000/- maintenance & security (PMS), testing & certification,
(Rupees Ten lakh Only) each. collateral management & pest control activities. It manages
and operates warehouses (Owned, Hired, Third Parties
TRANSFER TO RESERVES and Public Private Partnership (PPP) model) across 6
Indian states namely Rajasthan, Gujarat, Madhya Pradesh,
Your Directors have approved the transfer of the following Maharashtra, Haryana & Karnataka. During the year under
amounts to various reserves during the financial year ended review:
March 31, 2023:
a) SSLL has been appointed as Service Provider by
Amount in K Maharashtra State Warehousing Corporation (MSWC)
Amount transferred to for Preservation, Maintenance and Security (PMS) of
Crores
food grain stocks at 11 locations.
General Reserve 10.00
Other Reserve 0.21 b) SSLL has forayed into a new segment of Non- Agri
warehousing wherein 2.03 lac SFT has been leased out
PERFORMANCE AND FINANCIAL POSITION OF EACH to industrial customers.
SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE
c) SSLL has signed an agreement with DCX to provide
COMPANIES
an online vibrant Agritech platform that can be used
As at March 31, 2023, your Company had 24 (twenty four) by farmers, traders, processors and Govt. agencies for
subsidiaries and 3 (three) associate companies. safe and efficient digital trade, storage, export and
import of agriculture commodities.
As at March 31, 2023, none of the subsidiaries of the Company
qualifies to be considered as Material Subsidiary as per the In aggregate, SSLL is managing more than 400 warehouses
SEBI (Listing Obligations and Disclosure Requirements) with a total storage capacity exceeding 11 million SFT. SSLL
Regulations, 2015 (“Listing Regulations”) and Company’s policy is a wholly owned subsidiary of your Company.
on determining Material Subsidiary.
Linjemontage I Grastorp AB (“LMG”):
During the year under review, four step down subsidiaries of
LMG, a Swedish EPC company headquartered in Grastorp,
the Company viz. Brij Bhoomi Expressway Private Limited,
Sweden along with its two wholly owned subsidiaries, was
Vindhyachal Expressway Private Limited, Wainganga Expressway
acquired (85% equity stake) by the Company’s wholly
Private Limited and JMC Mining and Quarries Limited became
owned subsidiary in Sweden namely Kalpataru Power
the direct subsidiaries of the Company upon Amalgamation
Transmission Sweden AB (KPTS) in April 2019. In July 2022,
of JMC Projects (India) Limited with your Company. Further,
KPTS acquired the remaining 15% shares in LMG and hence
Kurukshetra Expressway Private Limited has become direct
LMG has now became 100% subsidiary of KPTS.

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Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

During the year under review, LMG along with its two Pursuant to provisions of Section 129 of the Companies
subsidiaries has bagged Orders of approx. H 651 Crore Act, 2013, your Company shall place Consolidated Financial
and has an Order Book of approx. H 1,009 Crore as on 31 Statements before its members for their approval. Further,
March, 2023. This year also the Company has delivered pursuant to provisions of Section 136 of the Companies Act,
very good profitability with a revenue of approx. H 1,002 2013, your Company will make available the Annual Accounts
Crore and margin of about H 73 Crore. LMG is now one of of the Subsidiary Companies and the related information to any
the key player in Swedish EPC market in the segment of Members of the Company who may be interested in obtaining
Substation, Transmission lines and it has also strengthened the same. The Annual Accounts of the Subsidiary Companies
its position in the industrial segment. This is a result of are also uploaded on the website of the Company i.e. https://
continued operational efficiency, better procurement and kalpatarupower.com/annual-reports-accounts/ and will also
ability to deliver projects in time. LMG continues to add be kept open for inspection at the Registered Office of your
more capabilities like entry into 400 kV transmission lines Company and that of the respective Subsidiary Company.
business, underground cabling and expanding its presence.
Further, LMG has successfully completed 2 large 400kV CONSOLIDATED FINANCIAL STATEMENTS
projects and was awarded as the best contractor for the
year 2022 by a client. Your Directors have pleasure in attaching the Audited
Consolidated Financial Statements for the year under review
Fasttel Engenharia S.A. (“Fasttel”): pursuant to Companies Act, 2013 and Listing Regulations. The
Consolidated Financial Statements presented by your Company
Fasttel Engenharia S.A. is an established EPC player with have been prepared as per Ind AS and include the Financial
more than 3 decades of presence, having footprints in Statements of its Subsidiary Companies, Associates and Joint
almost all Brazilian states. It has developed thousands Venture Companies.
of kilometers of transmission lines up to 750 kV and
substations up to 500 kV Voltage level. Fasttel is working
with various reputes customers/developers across the DIVESTMENT / MONETIZATION OF TRANSMISSION
Brazil. Fasttel is well positioned for actively participating LINE SPV’s
in studies and solutions for the next round of auctions During the year under review, your Company in terms of the
announced by Agência Nacional de Energia Elétrica, Brazil agreement has sold and transferred additional 25% out of the
(“ANEEL”) during FY 2023-2024. Your Company holds balance 51% equity shares of Alipurduar Transmission Limited to
51% equity shares in Fasttel Engenharia S.A. through its Adani Transmission Limited with an agreement to sell the balance
wholly owned subsidiary namely Kalpataru Power Do Brasil 26% to Adani Transmission Limited, after obtaining requisite
Participacoes Ltda. regulatory and other approvals and in a manner consistent with
Transmission Service Agreement.
Kalpataru IBN Omairah Contracting Company Limited
(“KIOCL”) Further, your Company has also sold and transferred additional
KIOCL is a joint venture of the Company with IBN Omairah 25% out of the balance 51% equity shares of Kohima-Mariani
Contracting Company Limited in the Kingdom of Saudi Transmission Limited to Apraava Energy Private Limited
Arabia wherein the Company is holding 65% equity shares (formerly known as CLP India Private Limited) with an agreement
of KIOCL. During the year under review, KIOCL has been to sell the balance 26% to Apraava Energy Private Limited, after
awarded three new Projects for construction of 380 kV, 115 obtaining requisite regulatory and other approvals and in a
Kv and 110 kV Double Circuit overhead transmission line. manner consistent with Transmission Service Agreement.
The Projects are progressing well and are expected to be
commissioned within the contractual timeline. DIRECTORS
Kalpataru Power Transmission Chile SpA (“KPCSA”): Your Board currently comprises of 10 Directors including
5 Independent Directors, 3 Executive Directors and 2 Non-
KPCSA is a wholly owned subsidiary of the Company in
Executive Non-Independent Directors.
Chile. Currently, KPCSA has two contracts awarded to it
in Chile for (a) HDVC Transmission Line (b) LA Negra New During the year under review, the appointment of Mr. Mofatraj
Sectioning Substation for 220/110 KV. For the successful P. Munot as Non-Executive Chairman of the Company was
execution of the contracts, KPCSA is strengthening its
approved by the members of the Company for a period of 5
capabilities in the market.
(five) years w.e.f. May 02, 2022.

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 Corporate Overview Management Reports Statutory Reports Financial Statements

Further, during the year under review, your Company appointed The number of Meetings of the Board that each Director
Mr. Shailendra Kumar Tripathi (DIN: 03156123) as an Additional attended is provided in the Report on Corporate Governance,
Director of the Company with effect from January 04, 2023 i.e. appended to, and forming part of, this Report.
Effective Date of the Scheme of Amalgamation of JMC Projects
(India) Limited (“JMC”) with the Company under the provisions
AUDIT COMMITTEE
of Sections 230 to 232 and other applicable provisions of the
Companies Act, 2013. Further, he was also designated as Dy. During the year, the Audit Committee was reconstituted and
Managing Director of the Company, for the period commencing Mr. Mofatraj P. Munot, Non-Executive Non-Independent Director
from January 04, 2023 to October 21, 2025, subject to approval was appointed as member of the Audit Committee with effect
of the shareholders. from May 14, 2022.

Also the shareholders of the Company pursuant to the postal As on March 31, 2023, the composition of the Audit Committee
ballot notice dated February 10, 2023, approved the appointment consists of Mr. Sajjanraj Mehta as Chairman, Mr. Mofatraj P.
of Mr. Shailendra Kumar Tripathi as Dy. Managing Director of the Munot, Mr. Vimal Bhandari and Mr. Narayan K Seshadri as
Company, for the period commencing from January 04, 2023 members of the Committee.
upto October 21, 2025 (both days inclusive).
The powers and roles of the Audit Committee are included in
Your Company has received declarations from all the Corporate Governance Report, which forms an integral part
Independent Directors confirming that (i) they meet with of the Annual Report. All the recommendations made by the
the criteria of independence as prescribed under Section Audit Committee were accepted by the Board of Directors
149(6) of the Companies Act, 2013 and under Regulation 16 of the Company.
(1) (b) of the Listing Regulations (ii) they continue to comply
with the Code of Conduct laid down under Schedule IV of the
OTHER COMMITTEES
Companies Act, 2013 and (iii) they have registered their names
in the Independent Director’s Databank. Further, pursuant to In order to adhere to the best corporate governance practices,
Section 164(2) of the Companies Act, 2013, all the Directors to effectively discharge its functions and responsibilities and in
have provided declarations in Form DIR- 8 that they have not compliance with the requirements of applicable laws, your Board
been disqualified to act as a Director. Also your Board is of the has constituted several Committees including the following:
opinion that the Independent Directors of the Company possess
integrity, requisite expertise, experience and proficiency and the Nomination and Remuneration Committee
same is given in the Corporate Governance Report. Stakeholder’s Relationship Committee

In terms of Section 152 of the Companies Act, 2013, Mr. Sanjay Corporate Social Responsibility Committee
Dalmia (DIN: 03469908), being the longest in the office, Risk Management Committee
shall retire by rotation at the ensuing AGM and being eligible, Share Transfer Committee
offers himself for re-appointment. The Board of Directors
Executive Committee
of the Company at the recommendation of Nomination
and Remuneration Committee has recommended for his The details with respect to the compositions, powers, roles,
re-appointment. terms of reference etc. of relevant Committees are given in detail
in the ‘Report on Corporate Governance’ of your Company which
A brief resume of Mr. Sanjay Dalmia, being re-appointed as a
forms part of this Report. The dates on which Meeting of Board
Director liable to retire by rotation along with the nature of his
Committees were held during the financial year under review
expertise, his shareholding in your Company and other details as
and the number of Meetings of the Board Committees that
stipulated under Regulation 36 (3) of the Listing Regulations is
each Director attended is provided in the ‘Report on Corporate
appended as an annexure to the Notice of the ensuing Annual
Governance’. The minutes of the Meetings of all Committees are
General Meeting.
circulated to the Board for discussion and noting.

BOARD MEETINGS During the year, all recommendations of the committees were
approved by the Board.
During the year under review, the Board met 6 times on May 14,
2022, August 4, 2022, November 10, 2022, December 29, 2022,
February 9, 2023 and March 27, 2023.

147
Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

KEY MANAGERIAL PERSONNEL (KMP) MANAGEMENT DISCUSSION AND ANALYSIS

During the year under review, Mr. Rajeev Kumar, Company As per Regulation, 34 of the SEBI (Listing Obligations and
Secretary of the Company resigned w.e.f. close of working hours Disclosure Requirements) Regulations, 2015, a separate section
of May 31, 2022. In the interim, the Company had designated Mr. on Management Discussion and Analysis Report outlining the
Krunal Shah, Senior Manager as an Interim Compliance Officer business of your Company forms part of this Annual Report.
in terms of Regulation 6 of the LODR Regulations effective
from June 01, 2022.
CORPORATE SOCIAL RESPONSIBILITY
Subsequently, the Board of Directors of the Company on the
During the year, the Corporate Social Responsibility (CSR)
recommendation of Nomination and Remuneration Committee,
Committee was reconstituted and Mr. Mofatraj P. Munot,
approved the appointment of Ms. Shweta Girotra (Membership
Non-Executive Non-Independent Director was appointed as
No. FCS 7313) as Company Secretary & Key Managerial
member of the CSR Committee with effect from May 14, 2022.
Personnel of the Company w.e.f. November 10, 2022 in terms of
As on March 31, 2023, the composition of the CSR Committee
the provisions of Section 203 of the Companies Act, 2013 and
consists of Mr. Sajjanraj Mehta as Chairman, Mr. Mofatraj P.
rules made thereunder. She was also appointed as Compliance
Munot, Mr. Parag M. Munot and Mr. Manish Mohnot as members
Officer of the Company in terms of Regulation 6 of the LODR
of the Committee.
Regulations effective from November 10, 2022.
Your Company has been committed to the welfare of the
During the year under review, Mr. Shailendra Kumar Tripathi
communities through philanthropic interventions even before
was appointed as Dy. Managing Director of the Company (Key
the provisions of Companies Act, 2013 made it mandatory.
Managerial Personnel) w.e.f. January 04, 2023.
In order to leverage the demographic dividend, the Company
Presently, Mr. Manish Mohnot, Managing Director & CEO, has been focusing on social issues of Healthcare, Education,
Mr. Shailendra Kumar Tripathi, Dy. Managing Director, Mr. Skilling/Livelihood, Animal Welfare, Environment and
Ram Patodia, Chief Financial Officer and Ms. Shweta Girotra, Community development by undertaking need based initiatives.
Company Secretary are the Key Managerial Personnel (KMPs) The Company implemented some innovative and sustainable
as per provisions of Companies Act, 2013. initiatives for the marginalized and vulnerable communities
around the Plant locations in Gandhinagar, Raipur & Padampur
along with remote project site locations across India. These
CORPORATE GOVERNANCE projects were aligned to the Schedule VII of the Companies
Act, 2013 and the United Nation’s Sustainable Development
Your Company is conscious of the fact that the success of
Goals and have strived towards achieving scalable impact,
a corporation is a reflection of the professionalism, conduct
outcomes and outputs in the community. The initiatives were
and ethical values of its management and employees. Your
implemented either directly or through Kalpatraru Foundation
Company’s business objective and that of its management and
& Kalpataru Welfare Trust.
employees is to provide valuable services in such a manner to
enhance value that can be sustained over the long term for its Your Company has formed a CSR Committee as per the
clients, shareholders, employees, business partners and the requirement of the Companies Act, 2013. On recommendation
national economy. of CSR Committee, the Board of Directors’ of your Company
has approved a CSR Policy which is available on the website
Your Company is committed to maintain the highest standards of
of your Company at https://kalpatarupower.com/wp-content/
Corporate Governance and adheres to the Corporate Governance
uploads/2016/05/CSR-Policy-May-2021.pdf The brief outline
requirements set out by the Securities and Exchange Board of
of the Corporate Social Responsibility (CSR) Policy of your
India (“SEBI”).
Company and the Annual Report on CSR activities undertaken
The Report on Corporate Governance, as stipulated under during the year as required under the Companies (Corporate
Regulation 34 of the Listing Regulations is attached. The Report Social Responsibility Policy) Rules, 2014 (as amended) are set
on Corporate Governance also contains certain disclosures out in Annexure A of this report.
required under Companies Act, 2013 for the year under review.

A certificate from M/s. B S R & Co. LLP, Statutory Auditors of the

BUSINESS RESPONSIBILITY AND SUSTAINABILITY
Company confirming compliance to the conditions of Corporate
REPORT
Governance as stipulated under Listing Regulations is annexed In terms of Regulation 34 of the SEBI (Listing Obligations
to Report on Corporate Governance. and Disclosure Requirements) Regulations, 2015 (“Listing
Regulations”) read with relevant SEBI Circulars, new reporting

148
 Corporate Overview Management Reports Statutory Reports Financial Statements

requirements on ESG parameters were prescribed under Assurance on the effectiveness of internal financial controls is
“Business Responsibility and Sustainability Report” (‘BRSR’). obtained through management reviews, continuous monitoring
The BRSR seeks disclosure on the performance of the Company by functional experts and testing of the internal financial
against nine principles of the “National Guidelines on Responsible control systems by the internal auditors during the course of
Business Conduct”. As per the SEBI Circulars, effective from the their audits. We believe that these systems provide reasonable
financial year 2022-23, filing of BRSR is mandatory for the top assurance that our internal financial controls are designed
1000 listed companies by market capitalization. Accordingly, effectively considering the nature of our industry and are
for the financial year ended March 31, 2023, your Company has operating as intended.
published BRSR instead of Business Responsibility Report. The
BRSR forms an integral part of this Annual Report.
STATUTORY AUDITORS AND AUDITORS’ REPORT

VIGIL MECHANISM M/s. B S R & Co. LLP (Firm Registration No. 101248W/W-
100022), Chartered Accountants, have been appointed as the
The Company promotes ethical behavior in all its business Statutory Auditors of the Company at the 37th Annual General
activities and has put in place a mechanism for reporting illegal Meeting held on August 7, 2018 to hold office for a period of 5
or unethical behavior. The Company has a vigil mechanism (five) consecutive years i.e. from the conclusion of 37th Annual
(whistle-blower policy) under which the employees, vendors General Meeting (AGM) till the conclusion of the 42nd Annual
and persons having business dealing with the Company are General Meeting of the Company subject to compliance of the
free to report violations of applicable laws and regulations and various provisions of the Companies Act, 2013 (‘the Act’).
the Code of Conduct of the Company. The reportable matters
may be disclosed to the Chief Ethics Officer and Anti Bribery Based on the recommendations of the Audit Committee, the
Management System Committee which operates under the Board of Directors of your Company, subject to the approval
supervision of the Audit Committee. Further, the functioning of of the members at the ensuing AGM has approved the re-
the vigil mechanism is being monitored by the Audit Committee appointment of M/s. B S R & Co. LLP, (Firm Registration No.
from time to time. The whistle blower may also report violations 101248W/W-100022) Chartered Accountants as the Statutory
to the Chairman of the Audit Committee in exceptional cases. Auditors of the Company for a period of 5 (five) consecutive
During the year, no employee/person was denied access to the years i.e. till the conclusion of 47th AGM of the Company to be
Audit Committee. held in the year 2028. The requisite resolution for approval by
the members of the Company has been set out in the Notice of
The Whistle Blower Policy has been disclosed on the the 42nd AGM of your Company.
Company’s website https://kalpatarupower.com/wp-content/
uploads/2016/05/Whistle-Blower-Policy-November-2021.pdf . M/s. B S R & Co. LLP, Chartered Accountants have given their
consent to be re-appointed as the Statutory Auditors of your
Company and have confirmed that the said re-appointment, if
INTERNAL FINANCIAL CONTROL SYSTEMS AND made, will be in accordance with the conditions prescribed under
THEIR ADEQUACY Sections 139 and 141 of the Act.
Internal Financial Controls are an integrated part of the risk The Statutory Auditors of the Company have issued Audit
management process, addressing financial risks and financial Reports on the Standalone and Consolidated Annual Financial
reporting risks. The Board has adopted policies and procedures Statement of the Company with unmodified opinion. There were
for ensuring orderly and efficient conduct of its business, no qualifications, reservation or adverse remark or disclaimer
including adherence to the Company’s policies, the safeguarding made by Statutory Auditor in their reports on the Standalone
of its assets, the prevention and detection of frauds and errors, Annual Financial Statement.
the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial disclosures.

149
Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The explanations of your Board of Directors in relation to remarks appearing in para (xxi) of Annexure A to Independent Auditor’s
Report under Companies (Auditor’s Report) Order, 2020 (CARO) issued by Statutory Auditors of the Company on consolidated
financial statements as a result of remarks by respective statutory auditors of Kurukshetra Expressway Private Limited (“KEPL”
or “Concessionaire”), a joint venture of the Company and Wainganga Expressway Private Limited (“WEPL”), a wholly owned
subsidiary of the Company, are as under:

Name of the Clause no. Remarks appearing in the

Explanation
Company of CARO consolidated CARO
KEPL Clause (ix) According to the information and KEPL, a joint venture (49.57%) of the Company, served
(a) explanations given to us and as per the a notice of termination of Concession Agreement
books of accounts and records examined (“CA”) vide letter dated October 7, 2021 to the National
by us, in our opinion, read with the fact Highways Authority of India (“NHAI”) on account of
that the project has been terminated and continuous disruption and blockade of traffic at National
there are no operations the company has Highway-71 due to farmer agitation with stoppage of toll
defaulted in the repayment of loans and collection that resulted into cash losses. The provisions
payment of interest thereon to its lenders of Concession Agreement provide for termination where
as and when the same were due and events which are not in control of KEPL, and obliges
hence the facilities granted by the banks NHAI paying KEPL for repayment of Debt Due along with
/ NBFC have been classified as Non- Adjusted Equity after necessary adjustments. However,
Performing Assets (NPA). The details pending receipt of final termination payment from NHAI,
w.r.t. the amount of borrowing and KEPL could not pay the loan and interest to its lenders
interest overdue may be referred to at in October 2021 and consequently the outstanding
Note No. 11 of the accompanying financial amount of loan and interest was classified as NPA (Non-
statements. performing asset) by the lenders.
Clause (xvii) The company has incurred cash losses
Upon receipt of termination payment and other claims
of H 160.72 Lacs & H 3,857.11 Lacs
filed against NHAI, KEPL believes that it will be able to
respectively in the current as well as the
meet its liabilities. KEPL has received a copy of the letter
immediately preceding previous year
dated February 3, 2022 from an Independent Engineer
Clause (xix) On the basis of the financial ratios, ageing
(“IE”) appointed by NHAI in which the IE has sought to
and expected dates of realization of assets
limit the amount payable (net of other deductions) as
and payment of financial liabilities, other
“Termination Payment”. KEPL do not agree to it.
information accompanying the financial
statements and our knowledge of the Although, the Company and other promoter of KEPL
Board of Directors and Management have, jointly and severally given ‘shortfall undertakings’ to
plans and based on our examination of the Senior Lenders in case there is any shortfall between
the evidence supporting the assumptions amounts received from NHAI and that payable by KEPL
indicate that a material uncertainty to its lenders, however, upon receipt of termination
exists as on the date of the audit report payment and other claims filed against NHAI and based
indicating that the company may not on management’s assessment and legal advice, KEPL
be able to meet its liabilities existing at believes that it will be able to meet its liabilities.
the date of balance sheet as and when
The Company has made provision for impairment of
they fall due within a period of one year
its entire Equity investment in KEPL, expected credit
from the balance sheet date. However,
loss against the entire amount of loan given (including
as represented to us, the company is
amount paid on behalf of other promoter) to KEPL and
reasonably sure of receiving the amount
potential shortfall, if any.
of claims and shall be able to meet the
liabilities, though with some delay. The Company has made above provisions without
prejudice to its and KEPL legal rights and claims against
NHAI and will continue to pursue these amounts against
KEPL. Further, it will seek KEPL to pursue their claims
and termination payment against NHAI notwithstanding
the above recognition.

150
 Corporate Overview Management Reports Statutory Reports Financial Statements

Name of the Clause no. Remarks appearing in the

Explanation
Company of CARO consolidated CARO
WEPL Clause (ix) According to the information and WEPL, a wholly owned subsidiary of the Company has
(a) explanations given to us and as per the been incurring losses due to development of alternate
books of accounts and records examined routes, changes in rules /regulations/ policies by the
by us, in our opinion, the company has Government and NHAI. WEPL has initiated arbitration
defaulted in the repayment of loans and proceedings against NHAI as per the provisions of the
payment of interest thereon to its lenders Concession Agreement (executed with NHAI) for losses
as and when the same were due, there suffered by it on account of aforesaid reasons (including
were delay of 1-89 days during the year. breach of contractual obligations) and sought reliefs in
As at the reporting date the aggregate relation to waiver of premium payment, compensation
amount of default pertaining to interest for future shortfall etc. As the matter is currently sub-
and principal aggregated to H 611.87 Lacs judice and losses suffered due to aforesaid reasons,
and H 1514.22 Lacs respectively for which there have been delay in payments to lenders. Having
the details may be referred to at Note said that, while there have been substantial reduction in
No. 9(a) of the accompanying financial toll revenue due to traffic diversion to alternate routes,
statements. economic slowdown etc., WEPL has been paying its
debt obligations through its accruals which is further
supplemented by infusion of funds from internal accruals
by the Company to maintain the loan account of the
lenders as Standard, as per the RBI Guidelines.

SECRETARIAL AUDITOR AND SECRETARIAL AUDIT RISK MANAGEMENT FRAMEWORK

REPORT
Your Company has constituted a Risk Management Committee
Pursuant to the provisions of Section 204 of the Companies as per the statutory requirement. The Company has formulated
Act, 2013, your Company had appointed Mr. Urmil Ved, a Risk Management Policy and has in place a mechanism to
Practising Company Secretary, Gandhinagar, as its Secretarial inform the Board Members about risk assessment. The Risk
Auditor to conduct the Secretarial Audit of your Company for Management Committee undertakes risk assessment and
FY 2022-23. The Report of the Secretarial Auditor for the FY minimization procedures and recommend the same to the
2022-23 is annexed to this report as Annexure B. There were Board of Directors.
no qualifications, reservation or adverse remark or disclaimer
made by Secretarial Auditor in its report. Further, after closure of the FY 2022-23, the Risk Management
Committee was reconstituted by addition of Mr. Shailendra
Kumar Tripathi, Dy. Managing Director, Mr. Amit Uplenchwar,
COST AUDITOR AND COST ACCOUNTS Director-Strategy Business Group, Mr. N. Neelakanteswaran,
Dy. President (Project Controls) & Mr. Hardik Hundia, Sr. Vice
In terms of Section 148 of the Companies Act, 2013 read with
President as members of Risk Management Committee and
Rule 14 of the Companies (Audit and Auditors) Rules, 2014,
cessation of Mr. Kamal Kishore Jain as member of the Committee.
the Company is required to maintain cost records in respect of
its steel manufacturing, electricity, roads & infrastructure and The Board periodically reviews Risk Management taking into
construction activity and have the cost records audited by a consideration the recommendations of Risk Management
qualified Cost Accountant. Committee and Audit Committee.
The Company made and maintained cost records as specified by Your Company has an elaborate Risk Management Framework,
the Central Government under Section 148(1) of Companies Act, which is designed to enable risks to be identified, assessed and
2013 and such records have been audited by the Cost Auditor mitigated appropriately. Your Company monitors, manages and
pursuant to Companies (Cost Records and Audit) Rules, 2014. reports on the principal risks and uncertainties that can impact
its ability to achieve its strategic objectives. Your Company’s
Based on the recommendation of the Audit Committee, the
SOP’s, organizational structure, management systems, code
Board of Directors of the Company has approved appointment
of conduct, policies and values together govern how your
of and remuneration payable to M/s. K. G. Goyal & Associates,
Company conducts its business and manage associated risks.
Cost Accountants (Firm Registration No. 000024) as the Cost
Your Company also has a separate Bribery Risk assessment
Auditor of the Company to audit the cost records for FY 2023-24.
framework which also defines the key mitigation actions.

151
Kalpataru Projects International Limited
(Formely Kalpataru Power Transmission Limited) Integrated Annual Report 2022-23

The Risk Management framework enables the management of views in best interest of the Company, assistance given in
to understand the risk environment and assess the specific protecting the legitimate interests of the Company, employees
risks and potential exposure to the Company, determine and investors, extending individual proficiency and experience
how to deal best with these risks to manage overall potential for effective functioning and operation of the Company etc.
exposure, monitor and seek assurance of the effectiveness of
the management of these risks and intervene for improvement The criteria for performance evaluation and the statement
where necessary and report throughout the organization indicating the manner in which formal annual evaluation of the
structure and upto the Risk Management Committee on a Board, its Committees and of individual Directors has been made
periodic basis about how risks are being monitored, managed, are also reproduced in the “Report on Corporate Governance”,
assured and improvements are made. which forms part of this Report.

More details in respect to the risk management are given in the

POLICY ON DIRECTORS’ APPOINTMENT AND
Management Discussion and Analysis Report forming part of
REMUNERATION INCLUDING CRITERIA FOR
this Annual Report.
DETERMINING QUALIFICATIONS, POSITIVE
ATTRIBUTES AND INDEPENDENCE OF A DIRECTOR
PARTICULARS OF REMUNERATION
Your Company‘s policy on remuneration for the Directors’, Key
A. The ratio of the remuneration of each director to the median Managerial Personnel and other employees is