About
K E C International Ltd
KEC International Limited is the largest Power Transmission Company in the world, which was incorporated on 18 Mar' 05. The Company is primarily engaged in Engineering, Procurement and Construction business (EPC) relating to infrastructure interalia products, projects and systems for power transmission, distribution, railways and related activities.
The flagship company in the transmission sector of the RPG Group, KEC strengths its presence in the areas of Design, Manufacture, Supply and Construction of Turnkey Projects of Power Transmission lines of voltages upto 800 KV and in the execution of Railway Electrification projects, setting up sub-stations and Power Distribution Networks, Optical Fibre Cable (OPGW) installations, Turnkey Telecom Infrastructure Services and maintenance of Power Transmission Lines.
With global operations spanning over 20 countries, the company is present in India, UAE, Libya, Ghana, Algeria, Afghanistan, Nigeria, Kazakhstan, Mali, Oman, South Africa, Kenya and Ethiopia among several other countries. The Company forayed into distribution market in the year 2005 itself and bagged noteworthy electrification projects across the globe. The Company had secured new orders worth Rs339 crore from Afghanistan and Ethiopia in December of the year 2005. During May of the year 2006, KEC had entered into the North American market with a joint venture with US-based Power Engineers Inc. KEC Power Inc. (KPI) the new company formed in the US is a 50:50 joint venture, based in the state of Idaho.
The Company had bagged a major Rs. 380 crore worth of order in Kazakhstan during May of the year 2007. The Scheme of Arrangement between KEC, RPG Transmission (RPGT) & National Information Technologies Limited (NITEL) and MP Power Line Limited, now called Octav Investments Ltd., became effective from 1st October of the year 2007. During the year 2007-08, the company completed 21 projects in the South Asian markets and 15 projects in International markets. In the same year, RPG Transmission Nigeria Limited, the subsidiary company of the erstwhile RPG Transmission Limited at Nigeria became the subsidiary of the company.
As at February 2008, KEC had received the Amity Corporate Excellence award at the International Business Summit and Research Conference. A joint venture company named KEC Power India Private Limited' with M/s. Power Holdings Inc., USA as a joint venture partner was incorporated in the state of Maharashtra in the month of March 2008 to provide services like conceptualizing, designing, developing power transmission and distribution lines, sub-stations and all types of power generating projects. The Company bagged two orders worth of Rs. 124 crores from NTPC Electric Supply Company Ltd. (NESCL) and Rs. 55 Crores from Power Grid Corporation of India Limited (PGCIL) in September of the year 2008.
In the year 2009, the company executed several major transmission line projects as well as distribution, substation, railway electrification and telecom projects, besides entering new regions. The company entered three new geographies, Mali, Tajikistan and Australia in short time. The company won the largest ever-international order in its history valued at approximately Rs 636 Crores from Egypt.
In the year 2010, the scheme of amalgamation for merger of the RPG cables Limited with the company. The company has set up a training centre at Butibori with facility of residental and non-residental training. The company obtained orders from new markets like Cameroon and Peru, thereby widening its global presence and made a successfully re-entry in Kuwait. Large orders secured from Algeria Mali, Abu Dhabi, Kuwait and Oman.
In the year 2011, the company entered into the 400 KV sub-station segment and secured two orders worth Rs. 130 crore from PGCIL. The company acquired Jay Railway Signating Priviate Limited, which shall help us in building pre-qualification for the signating projects. The company diversified into the water Resource Management business Vertical during the current financial year to leverage expertise in project management and EPC infrastructure space.
In the year 2012, Net Sales increased by 16.12% to Rs.4604.33 crore in this year and Net Profit increased by 23.62% to Rs. 181.84 Crore. Transmission business entered into DR Congo by securing order of Rs.213 Crore. The company has gradually ventured into new business- power systems, cables, railways and water. It's order book from these business incerased from Rs 1173 Crore in FY10 to Rs 2343 crore in FY12.
During the year 2015, the Company completed the prestigious Haldia River Crossing project in West Bengal. The project included construction of two of the tallest (775 feet) and heaviest towers (each weighing more than 1790 MT) on the Hoogly River. This project reaffirms the Company's capability to execute challenging projects in difficult terrains and adverse weather conditions. The Company also expanded its domestic presence in Substation business by securing large and prestigious orders for the establishment of various Gas Insulated Substations (GIS). A 765 kV GIS in Thiruvalam, Tamil Nadu constructed by KEC has been commissioned by PGCIL during the year, and this is the second GIS Sub Station in India. The Company also expanded its strong global EPC expertise in the Americas through its wholly owned subsidiary SAE Towers by securing five transmission EPC projects in Brazil.During the year ended 31 March 2015, the Company consummated the transaction for sale of its surplus land at Thane near Mumbai for a total consideration of Rs. 212.35 crore. Further the Company entered into agreement for sale of its telecom assets in the states of Chhattisgarh, Meghalaya and Mizoram.
Jay Railway Projects Private Limited, a wholly owned subsidiary of the Company, merged with the Company on 30 December 2015, with appointed date of 1 April 2014. Further, during the year under review, SAE Towers Panama Holdings LLC and SAE Towers Panama S de RL Panama, step down subsidiaries, were dissolved.
During the year 2016, the Company had incorporated a subsidiary Company namely KEC Bikaner Sikar Transmission Private Limited as a Special Purpose Vehicle (SPV), to execute a project awarded to the Company by Rajasthan Rajya Vidyut Prasaran Nigam Limited in the State of Rajasthan.
The Company's Water Business having a significant component of Civil and Structural Engineering was merged with the Civil Business with effect from 1 April 2017 with a view to drive further synergies and manage efficiencies. In Water business, the Company closed most of its legacy projects and is currently focusing on complete integrated Water and Waste Water/ Sewage Treatment projects including Embankment & Flood Control, Sewage & Industrial Effluent Treatment and Potable Water Treatment & Distribution in FY 2017.
In FY 2017, five step down subsidiaries of the Company located at Delaware, USA namely KEC International Holdings LLC, KEC Brazil LLC, KEC Mexico LLC, KEC Transmission LLC and KEC US LLC have been merged with SAE Towers Holdings LLC, a step down subsidiary at Delaware, USA with effect from 29 September 2017.
As on March 31, 2018, the Company has seventeen subsidiaries comprising of seven direct subsidiaries and ten step down subsidiaries.
The Company acquired 2.10% shares in Al Sharif Group & KEC Limited Company, a Joint Venture company located in Saudi Arabia. Consequent to such acquisition, the shareholding of the Company increased from 49% to 51.10% and the Joint Venture Company became a subsidiary of the Company with effect from 26 March 2018.
In the South- American region, the Company signed two large EPC contracts to execute 546 km of transmission lines in Brazil during FY 2018. The Company successfully expanded its client portfolio to include CORE, RVNL, IRCON, RITES and PGCIL. It succeeded in diversifying its project portfolio, with about 70% of its order book comprising of composite and signaling & telecommunication works in FY 2018.
In Civil business, the Company successfully executed four complex silos with Slipform and climbing formwork technologies, thereby achieving faster execution and superior quality. Several exclusive tie-ups with OEMs for strategic equipment like batching plants, tower cranes and other equipment has proved beneficial in reducing mobilization time and fast-tracking project execution in FY 2018.
During FY 2018, the Company joined the international Solar EPC market and commissioned a ground mount project in the Kingdom of Saudi Arabia.
During FY 2018, the Company consolidated its manufacturing footprint by shifting operations from its manufacturing plant at Silvassa to Vadodara, thus creating an integrated facility offering the entire gamut of products ranging from EHV, HT and LT Cables. The Company secured its largest ever EHV order for 220 kV cables from Power Grid Corporation of India Limited, helping it establish pre-qualification for similar cables, as well as cabling projects.
During the year 2019, Company completed the 130 MWp turnkey EPC project for APGENCO, taking our cumulative commissioning capacity to more than 348 MWp. It completed landmark projects like 220/66 kV GIS Substation in Drass (part of the Srinagar-Leh Transmission System), the second coldest inhabited place on Earth; 765/400 kV GIS Substation built across nine levels on mountainous slopes; connected India's North-East-West grid to the Southern grid through the Transmission System Beyond Vemagiri' project and erected the tallest River Crossing Towers in Thailand. It produced 40,000 MTs of galvanised steel structures during the year. It commissioned 6 projects ahead of schedule. It completed track laying of the Parauna to Bhua and Venkatachalam to Obulavaripalle sections for Rail Vikas Nigam Limited (RVNL). It commissioned ~30% railway electrification projects in India totaling to 1,576 km. During the year, the Company divested its entire stake in the subsidiary, KEC Bikaner Sikar Transmission Private Limited and consequently ceased to be the subsidiary of the Company w.e.f. February 08, 2019.
During the year 2019-20, the Company incorporated a wholly owned subsidiary in Dubai, namely KEC Towers LLC on November 24, 2019 and acquired its eighth manufacturing unit, a 50,000 MTPA tower manufacturing facility in Dubai. It expanded export footprint to new countries in Africa, the Middle East and SAARC. It commissioned 8 new projects in FY 20. It commissioned railway track laying of 62 track kilometres (TKM). It acquired an automated transmission tower manufacturing facility in Mainland Dubai, with a capacity of 50,000 tonnes per annum in FY 2020. It commissioned its single largest project in terms of capacity, a 150 MWp ground mount project in Rajasthan. The business of the Company diversified portfolio to include RRTS (Regional Rapid Transit System) and Road over bridge (ROB) projects in addition to existing offerings of Overhead Electrification and composite projects.
In FY 2021, the Company commissioned sixth tower manufacturing facility, which was acquired in Dubai. It commissioned 500 kV Pluak Daeng Substation Project in Thailand, which involved the erection of the country's largest Substation gantries, Tanzania's first 400 kV substations at Dodoma and Singida, 400 kV Pugalur - Arasur Transmission Line in Tamil Nadu, part of Power Grid Corporation of India Limited's (PGCIL) prestigious 800 kV Raigarh - Pugalur HVDC project, 400 kV Silchar and Misa Substations in Assam for PGCIL, part of North Eastern Region. It delivered 22% of railway network electrified during the year, totaling to 1,329 route kilometres (RKM); It commissioned railway track laying of 171 RKM. It expanded into technology-enabled areas in Metro Rail, speed upgradation for High-Speed Rail and advanced Signalling & Telecommunication (S&T) systems for Dedicated Freight Corridor. It commissioned a two-lane River Over Bridge in Kochi, six months ahead of schedule by deploying innovative, efficient, and cost-effective techniques.
During 2021-22, the Company incorporated a step-down subsidiary, KEC EPC LLP in Dubai on October 06, 2021. It acquired Spur Infrastructure Private Limited, an EPC company to accelerate the business on October 13, 2021. It commissioned 4 rooftop solar projects aggregating to 13.6 MW, by converting existing industrial plant sheds into solar power generation units. It introduced new railway cables such as 150 & 193 sq. mm. contact wires, feeder, jumper and dropper wires, 125 sq. mm. catenary conductors, signalling power cables, railway OFC cables, and Quad cables for railway applications at its Cables manufacturing units. It completed two Smart City projects in Aurangabad and Bidkin, located in Maharashtra. It commissioned 7 projects ahead of contractual schedule during the year. It widened presence in conventional segments such as speed upgradation, port connectivity, tunnel ventilation and railway siding. It expanded the presence in technology-enabled areas of Urban Infrastructure in Metro electrification - OHE as well as Third Rail, power supply systems, and track laying for reputed Metro clients.
In 2022-23, the Company commissioned first transmission line project in Burkina Faso and received another EPC order for 132 kV substation in the country; commissioned four substations for the critical electrical interconnection project between the countries - Ivory Coast, Liberia, Sierra Leone, and Guinea (CLSG) to Western-African Power Pool (WAPP); commissioned transmission line and a substation project in Mali and Senegal respectively.
In 2023, the Company's wholly owned subsidiary SAE Towers in the Americas, commissioned the EPC projects in Brazil, including 4 transmission lines spanning 900 km and three substations totalling to over 1,000 MVA in Brazil. It launched India's developed Train Collision Avoidance System (KAVACH) and Automatic Block Signalling (ABS), tunnel ventilation, etc.
During the year 2023, the Company introduced new products such as Flat Submersible cables, LV Hybrid cables, PV Solar cables, Concentric cables, Cathodic Protection cables, Railways Signalling Power cables, etc. Further, it developed Green Power and Control cables that are RoHS (Restriction of Hazardous Substances) and REACH compliant. It commissioned 15 transmission line and substation projects in countries such as Malaysia, Thailand, Mali, Burkina Faso, Burundi, and Saudi Arabia. It expanded hardware portfolio with fittings for OPGW, Cross-Rope Steel Wire and Stock Bridge Damping System. Electrified 24% of India's railway network during the year, totalling to 1,564 RKM; commissioned railway track laying of 198 RKM. Contributed to Mission Raftaar (2 x 25 kV Speed upgradation projects) - delivering 11 projects spanning 2,400 RKM; executed more than 35 high rise luxury residential buildings.
In 2022-23, Company worked on 2 projects for Delhi, viz Meerut Regional Rapid Transit System (RRTS), now renamed as RapidX. KEC's first metro project, encompassing viaduct, stations and ballast-less track works, for Kochi Metro Rail Corporation Limited was commissioned from June, 2022; It completed RRTS project - from the Duhai at-grade station to the Sahibabad elevated station; expanded presence in digitalized areas of Metro Electrification - OHE & Third Rail, Power supply systems, and Ballastless track works; demonstrated strong HDD (Horizontal Direction Drilling) execution capabilities with 32', 2.2 km HDD on Brahmani river in Odisha; design, supply, and construction of 225 kV Overhead Transmission Lines (OTL) for SONABEL to connect substations of solar power generation plants and national grid network; installed 400 kV D/C Bogura-Kaliakoir Transmission Line Project (131 km), supply and installation, on turnkey basis, for upgradation of existing Tharamani 230/110/33 kV substation into 400/230- 110/33 kV GIS substation for Tamil Nadu Transmission Corporation Limited (TANTRANSCO); installation, testing, commissioning of standard gauge ballastless track in Main Line from Chembur to Mandale and ballasted, ballastless & special track works in Mandale Depot of Line-2b for MMRDA; Construction of General Civil & Infrastructural Works including land development, process structures, plant and non-plant buildings and Infrastructure Works (road and storm drains) for the greenfield project at Thiruvallur, Tamil Nadu; commissioned the PVC
compounding plant at Vadodara; and commissioned the 16' X 126 Kms Tundla - Gawaria Project.
K E C International Ltd
Chairman Speech
Chairman Statement
The Directors have pleasure in presenting the Ninth Annual Report, along with the
audited accounts of the Company, for the year ended March 31, 2014.
1. Financial Results
|
|
|
|
Rs in crore |
| Particulars |
Consolidated |
Standalone |
|
FY14 |
FY13 |
FY14 |
FY13 |
| Net Revenue from Operations |
7,901.83 |
6,979.49 |
6,558.77 |
5,592.08 |
| EBITDA |
493.27 |
381.40 |
372.89 |
231.09 |
| Finance Cost |
263.27 |
194.40 |
231.42 |
164.81 |
| Depreciation & Amortisation |
70.52 |
56.08 |
55.42 |
43.05 |
| Profit Before Tax |
155.10 |
146.83 |
150.86 |
43.74 |
| Tax Expenses |
88.34 |
81.79 |
65.27 |
39.18 |
| Profit After Tax |
66.75 |
65.04 |
85.59 |
4.56 |
| Proposed Dividend on equity shares |
18.05 |
15.22 |
18.05 |
15.03 |
| (including tax on dividend) |
|
|
|
|
| Transfer to General Reserve |
8.56 |
0.45 |
8.56 |
0.45 |
2. Dividend
The Board of Directors has recommended a dividend of Rs 0.60 per equity share of Rs 2
each for the year ended March 31, 2014, on the equity share capital of the Company,
aggregating to Rs 15,42,53,022 (Rupees Fifteen Crore Forty Two Lacs Fifty Three Thousand
Twenty Two only). The dividend on equity shares is subject to the approval of the members
at the ensuing Annual General Meeting. Further the Board of Directors proposes to transfer
an amount of Rs 8.56 crore to the General Reserve.
3. Performance
Financial Performance
On a consolidated basis, the net revenue from operations increased by 13.21% to
Rs 7,901.83 crore. The net Profit increased by 2.6% to Rs 66.75 crore. On a standalone
basis, the net revenue from operations increased by 17.29% to Rs 6,558.77 crore, while the
net Profit was Rs 85.59 crore in FY14, as compared to Rs 4.56 crore in FY13.
During the year under review, several measures have been taken for improving the
performance of the Company and to secure new orders across various businesses and
geographies. The order intake for the year increased by 13.34% to Rs 8,482 crore. The
closing order book has increased by 7.7% to Rs 10,200 crore by FY14 end.
While the transmission business continued to perform well both in terms of revenue and
Profitability, the overall Profitability of the Company on consolidated basis was impacted
due to revenue de-growth in the wholly owned subsidiary
SAE Towers. It was also impacted due to time and cost overruns in Railways, Power
Systems and Water businesses. In the Cables business Profitability was impacted due to
pricing pressure as also higher costs at the new manufacturing facility established at
Vadodara.
Operational highlights
The key highlights for the Company’s various businesses are as follows:
Power Transmission & Distribution: This is the Company’s largest business
vertical which provides end-to-end solutions for power evacuation from generating stations
to consumer distribution points.
The order intake for the business increased by 12.1% to Rs 6,951 crore. The orders came
from across all the regions. These also include large value orders from Tanzania Rs
(772 crore), Saudi Arabia (Rs 708 crore) and Afghanistan (Rs 590 crore).
The Company is also leveraging its strong global EPC expertise along with a local
foothold in American market through SAE Towers. During FY14, SAE towers entered in EPC
business and secured two transmission line EPC orders in Brazil. These orders were of
approx. Rs 94 crore.
The Company also expanded its international presence in Substation space by securing
orders in Laos, Philippines, Malaysia, Saudi Arabia and Afghanistan during the year.
Further, the Company has increased its presence in Gas Insulated Substations (GIS) by
securing a
Rs 102 crore order in Bihar.
SAE Towers completed expansion of its pole production capacity at its existing facility
in Mexico from 5,000 MTs to 12,000 MTs per annum. In addition to this, the Company has
also completed expansion of its tower manufacturing capacity at its existing facilities in
Jaipur, Jabalpur and Nagpur from 1,74,000 MTs to 2,11,200 MTs per annum.
Cables: Consequent upon the commencement of the new plant at Vadodara, the
manufacturing facility at Thane has been closed down and the Company has entered into an
agreement for sale of this land. The complete range of products manufactured at Thane
plant are now being manufactured at the Vadodara plant. The annual order intake for the
business increased by 26.5% to Rs 855 crore in FY14.
Railways: The Company has secured a large composite order from the Rail Vikas Nigam
Limited, India. The order includes electrification, civil works, signalling and
telecommunication works in the state of Uttar Pradesh and the order value is Rs 228 crore.
The Company also intends to target projects related to Metro and dedicated freight
corridors in partnerships with other Indian and foreign players.
Water: The Company secured two Sewage Treatment orders in Bengaluru and Uttarakhand of
total Rs 205 crore. In addition to this, it secured its first ever Dam construction order
in Madhya Pradesh of Rs 99 crore. Further, it also secured Canal construction orders in
Madhya Pradesh of
Rs 75 crore. Based on orders in hand and execution in FY14, the Company is also
building its pre-qualification base in this business.
4. Listing
The Equity Shares of the Company continue to remain listed on BSE Limited and National
Stock Exchange of India Limited. Further during the year the Company has listed its equity
shares on MCX Stock Exchange Limited. The stipulated listing fees for FY15 have been paid
to all the above Stock Exchanges.
5. Fixed Deposits
The Company has not accepted any deposits within the meaning of Sections 58A and 58AA
of the Companies Act, 1956, and the Rules framed thereunder and any re-enactments
thereof.
6. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and
Outgo
The particulars relating to conservation of energy, technology absorption, foreign
exchange earnings and outgo, as required to be disclosed under Section 217(1) (e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988, are provided in the prescribed format as an annexure to
this Report.
7. Management Discussion and Analysis and Corporate Governance Report
In compliance with Clause 49 of the Listing Agreement entered into with the Stock
Exchanges, a separate section on Management Discussion and Analysis, as approved by the
Board of Directors, which includes details on the state of affairs of the Company as
required to be disclosed in the Directors’ Report forms a part of this Annual Report.
Further, the Corporate Governance Report, duly approved by the Board of Directors,
together with a certificate from the Statutory Auditors confirming the compliance with the
requirements of Clause 49, also forms a part of this Annual Report.
8. Subsidiary Companies
At the beginning of FY14, the Company had twenty two direct and step down subsidiary
companies. One step down subsidiary company has been incorporated in Mexico to explore the
business opportunities in EPC business. Accordingly, the number of direct and step down
subsidiaries of the Company stands increased to twenty three as on the date of this
Report. The details pertaining to subsidiaries are mentioned under the statement made
pursuant to Section 212 of the Companies Act, 1956, which forms a part of this Annual
Report.
Ministry of Corporate Affairs vide Circular No: 02 / 2011 dated February 08, 2011, has,
subject to compliance with certain conditions, granted general exemption to the companies
from applicability of Section 212 of the Companies Act, 1956. As per the general
exemption, a statement containing brief financial details of the Company’s
subsidiaries for the year ended March 31, 2014, is included in this Annual Report. The
Annual Accounts of these subsidiaries and the related detailed information will be made
available to any Member of the Company / its subsidiaries seeking such information at any
point of time and are also available for inspection by any Member of the Company / its
subsidiary(ies) at the Registered Office of the Company / its subsidiary(ies).
9. Consolidated Financial Statements
In accordance with Clause 32 of the Listing Agreement entered into with the Stock
Exchanges, the Consolidated Financial Statements of the Company, including the financial
details of all the subsidiary companies of the Company, forms part of this Annual Report.
The consolidated Financial Statements have been prepared in accordance with the Accounting
Standards issued by the Institute of Chartered Accountants of India.
10. Directors
In accordance with the provisions of the Companies Act,
2013,Mr.H.V.GoenkaandMr.A.T.Vaswani,areliabletoretire by rotation and eligible for
re-appointment at the ensuing Annual General Meeting. Further the Board of Directors has
appointed Mr. Vinayak Chatterjee as an Additional Director w.e.f. April 30, 2014. Pursuant
to Section 161 of the Companies Act, 2013, and Article 124 of the Articles of Association
of the Company, Mr. Vinayak Chatterjee holds Office upto the date of the ensuing Annual
General Meeting of the Company and is eligible for appointment as Director. Further as per
the provisions of the Companies Act, 2013, the independent directors of the Company will
have to be appointed by the members for a term upto five years, and no independent
director shall be liable to retire by rotation. Further Mr. S. S. Thakur, Mr. G. L.
Mirchandani, Mr. D. G. Piramal, Mr. S. M. Kulkarni, Mr. S. M. Trehan and Mr.
Vinayak Chatterjee have given declaration to the Company under Section 149(6) of the
Companies Act, 2013, that they qualify the criteria of independence mentioned under that
sub-section. Accordingly it is proposed to appoint them as independent directors not
liable to retire by rotation for a term of five years from the ensuing Annual General
Meeting.
In view of the provisions of Section 165 of the Companies Act, 2013, which restricts
the directorship of a director in ten public limited companies and the proposed amendment
to the Listing Agreement entered into with the Stock Exchanges, which restricts the
directorships of independent directors to seven listed companies only, Mr. M. K. Sharma,
who was a director of the Company resigned from his Office w.e.f. March 31, 2014. The
Board places on record its sincere appreciation for the valuable services rendered by Mr.
M. K. Sharma during his tenure as the Member of the Board.
In compliance with Clause 49 IV (G) of the Listing Agreement, brief resume, expertise
and other details of all the directors proposed to be appointed / re-appointed are
attached to the Notice of the ensuing Annual General Meeting.
The Board of Directors recommends to the members the appointment of the above referred
independent directors and the re-appointment of Mr. H. V. Goenka and Mr. A. T. Vaswani as
the directors of the Company.
11. Auditors
Statutory Auditors
In view of the provisions of Section 139 of the Companies Act, 2013, and the Rules made
thereunder, a listed company cannot appoint an audit firm as the Auditors of the Company
for more than two terms of five consecutive years and which shall be subject to
ratification by the members at every Annual General Meeting. For reckoning this term, the
period already served by the firm as auditors shall be counted. According to the
Illustration 2 appended to sub-rule 3 of Rule 6 of the Companies (Audit and Auditors)
Rules, 2014, every firm of the Auditors who has completed 7 or more years as an Auditor of
the prescribed classes of companies (including listed companies), can be appointed as an
Auditor for a further period upto three years only. Accordingly Delloitte Haskins &
Sells (DHS) is entitled to be appointed as Statutory Auditors of the Company for a further
period upto three years. In view of the same it is proposed to appoint DHS as the
Statutory Auditors of the Company to hold Office from the conclusion of the ensuing Annual
General Meeting until the conclusion of the Twelfth Annual General Meeting and to
authorise the Board of Directors to fix their remuneration. The Company has received a
letter from DHS to the effect that their appointment, if made, would be within the limits
prescribed under the provisions of the Companies Act, 2013 and that they are not
disqualified for such appointment within the meaning of the said Act. The Board of
Directors recommends the appointment of DHS as the Statutory Auditors of the Company for a
period of three years.
Branch Auditors
In terms of Section 143(8) of the Companies Act, 2013, the audit of the accounts of the
branch Offices of the Company located outside India is required to be conducted by the
person(s) or firm(s) qualified to act as Branch Auditors. The Board of Directors
recommends to the members to pass the resolution, as stated in Item No.6 of the Notice,
convening the ensuing Annual General Meeting.
Cost Auditors
The Central Government has approved the appointment of M/s. Kirit Mehta & Co., Cost
Accountants, Mumbai, as Cost Auditors, for conducting Cost Audit in relation to Electrical
Cables and Conductors and Steel Towers manufactured by the Company for FY14 under The
Companies (Cost Accounting Records) Rules, 2011. The Cost Audit Report and the Compliance
Report for FY13 was filed by the Cost Auditors with the Ministry of Corporate Affairs on
September 30, 2013.
12. Policy on Code of Conduct and Ethics
The RPG Group has laid down a Code of Conduct and Ethics (Code) applicable to all the
employees in RPG Group companies. The Code provides for the matters related to governance,
compliance, ethics and other matters within the RPG Group companies. The Code also
includes the policy on Prevention, Prohibition and Redressal of Sexual Harassment of Women
at Workplace in accordance with the provisions of Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013.
13. Awards Received During the Year
For FY 14 the Company was conferred with the ‘Utkrishta Puraskar’ i.e. Best
Transmission Line Company Award and ‘Sahbhagita Puraskar’ i.e. Support Outside
Line of Duty Award from Power Grid Corporation of India Limited. Further the Company also
won the prestigious, "Best Employer Award, 2013" by Aon Hewitt and the
"Indo-American Corporate Excellence Award" by the Indo-American Chambers of
Commerce for best Indian company operating in US. The details of these Awards &
Recognition are mentioned on page 18 & 19 of this Annual Report
14. Directors’ Responsibility Statement
The Board of Directors would like to affirm that the financial statements for the year
under review conform in their entirety to the requirements of the Companies Act, 1956. As
stipulated in Section 217(2AA) of the Companies Act, 1956, the Board of Directors of the
Company hereby state and confirm that:
(i) in the preparation of the annual accounts for the year ended March 31, 2014, the
applicable Accounting Standards have been followed; (ii) such accounting policies have
been selected and applied consistently and judgments and estimates made that are
reasonable and prudent, so as to give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the Profit of the Company for the year
under review; (iii) proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 1956,
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; (iv) the annual accounts for the financial year ended March 31,
2014, have been prepared on a going concern basis.
15. Particulars of Employees
In terms of provisions of Section 217(2A) of the Companies Act, 1956, read with the
Companies (Particulars of Employees) Rules, 1975, as amended, the names and other
particulars of the employees are required to be set out in the Annexure to the
Directors’ Report. However, as per the provisions of Section 219(1)(b)(iv) of the
said Act, the Annual Report, excluding the aforesaid information, is being sent to all the
members of the Company and others entitled thereto. Members who are desirous of obtaining
such particulars are requested to write to the Company Secretary of the Company.
16. Acknowledgement
Your Directors take this opportunity to thank the Customers, Vendors, Financial
Institutions, Banks and all other stakeholders for their continued co-operation and
support to the Company. Further the Directors would also like to thank the Central and
State Government authorities and Regulatory authorities for their support.
Your Directors appreciate and value the trust reposed and faith shown by every
shareholder of the Company.
Last but not least the Board wishes to place on record its deep gratitude to all its
employees whose enthusiasm, team efforts, devotion and sense of belongingness has made
this Company proud.
|
For and on behalf of the Board of Directors |
|
H. V. Goenka |
|
Chairman |
| Place: Mumbai |
|
| Date: April 30, 2014 |
|
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K E C International Ltd
Company History
KEC International Limited is the largest Power Transmission Company in the world, which was incorporated on 18 Mar' 05. The Company is primarily engaged in Engineering, Procurement and Construction business (EPC) relating to infrastructure interalia products, projects and systems for power transmission, distribution, railways and related activities.
The flagship company in the transmission sector of the RPG Group, KEC strengths its presence in the areas of Design, Manufacture, Supply and Construction of Turnkey Projects of Power Transmission lines of voltages upto 800 KV and in the execution of Railway Electrification projects, setting up sub-stations and Power Distribution Networks, Optical Fibre Cable (OPGW) installations, Turnkey Telecom Infrastructure Services and maintenance of Power Transmission Lines.
With global operations spanning over 20 countries, the company is present in India, UAE, Libya, Ghana, Algeria, Afghanistan, Nigeria, Kazakhstan, Mali, Oman, South Africa, Kenya and Ethiopia among several other countries. The Company forayed into distribution market in the year 2005 itself and bagged noteworthy electrification projects across the globe. The Company had secured new orders worth Rs339 crore from Afghanistan and Ethiopia in December of the year 2005. During May of the year 2006, KEC had entered into the North American market with a joint venture with US-based Power Engineers Inc. KEC Power Inc. (KPI) the new company formed in the US is a 50:50 joint venture, based in the state of Idaho.
The Company had bagged a major Rs. 380 crore worth of order in Kazakhstan during May of the year 2007. The Scheme of Arrangement between KEC, RPG Transmission (RPGT) & National Information Technologies Limited (NITEL) and MP Power Line Limited, now called Octav Investments Ltd., became effective from 1st October of the year 2007. During the year 2007-08, the company completed 21 projects in the South Asian markets and 15 projects in International markets. In the same year, RPG Transmission Nigeria Limited, the subsidiary company of the erstwhile RPG Transmission Limited at Nigeria became the subsidiary of the company.
As at February 2008, KEC had received the Amity Corporate Excellence award at the International Business Summit and Research Conference. A joint venture company named KEC Power India Private Limited' with M/s. Power Holdings Inc., USA as a joint venture partner was incorporated in the state of Maharashtra in the month of March 2008 to provide services like conceptualizing, designing, developing power transmission and distribution lines, sub-stations and all types of power generating projects. The Company bagged two orders worth of Rs. 124 crores from NTPC Electric Supply Company Ltd. (NESCL) and Rs. 55 Crores from Power Grid Corporation of India Limited (PGCIL) in September of the year 2008.
In the year 2009, the company executed several major transmission line projects as well as distribution, substation, railway electrification and telecom projects, besides entering new regions. The company entered three new geographies, Mali, Tajikistan and Australia in short time. The company won the largest ever-international order in its history valued at approximately Rs 636 Crores from Egypt.
In the year 2010, the scheme of amalgamation for merger of the RPG cables Limited with the company. The company has set up a training centre at Butibori with facility of residental and non-residental training. The company obtained orders from new markets like Cameroon and Peru, thereby widening its global presence and made a successfully re-entry in Kuwait. Large orders secured from Algeria Mali, Abu Dhabi, Kuwait and Oman.
In the year 2011, the company entered into the 400 KV sub-station segment and secured two orders worth Rs. 130 crore from PGCIL. The company acquired Jay Railway Signating Priviate Limited, which shall help us in building pre-qualification for the signating projects. The company diversified into the water Resource Management business Vertical during the current financial year to leverage expertise in project management and EPC infrastructure space.
In the year 2012, Net Sales increased by 16.12% to Rs.4604.33 crore in this year and Net Profit increased by 23.62% to Rs. 181.84 Crore. Transmission business entered into DR Congo by securing order of Rs.213 Crore. The company has gradually ventured into new business- power systems, cables, railways and water. It's order book from these business incerased from Rs 1173 Crore in FY10 to Rs 2343 crore in FY12.
During the year 2015, the Company completed the prestigious Haldia River Crossing project in West Bengal. The project included construction of two of the tallest (775 feet) and heaviest towers (each weighing more than 1790 MT) on the Hoogly River. This project reaffirms the Company's capability to execute challenging projects in difficult terrains and adverse weather conditions. The Company also expanded its domestic presence in Substation business by securing large and prestigious orders for the establishment of various Gas Insulated Substations (GIS). A 765 kV GIS in Thiruvalam, Tamil Nadu constructed by KEC has been commissioned by PGCIL during the year, and this is the second GIS Sub Station in India. The Company also expanded its strong global EPC expertise in the Americas through its wholly owned subsidiary SAE Towers by securing five transmission EPC projects in Brazil.During the year ended 31 March 2015, the Company consummated the transaction for sale of its surplus land at Thane near Mumbai for a total consideration of Rs. 212.35 crore. Further the Company entered into agreement for sale of its telecom assets in the states of Chhattisgarh, Meghalaya and Mizoram.
Jay Railway Projects Private Limited, a wholly owned subsidiary of the Company, merged with the Company on 30 December 2015, with appointed date of 1 April 2014. Further, during the year under review, SAE Towers Panama Holdings LLC and SAE Towers Panama S de RL Panama, step down subsidiaries, were dissolved.
During the year 2016, the Company had incorporated a subsidiary Company namely KEC Bikaner Sikar Transmission Private Limited as a Special Purpose Vehicle (SPV), to execute a project awarded to the Company by Rajasthan Rajya Vidyut Prasaran Nigam Limited in the State of Rajasthan.
The Company's Water Business having a significant component of Civil and Structural Engineering was merged with the Civil Business with effect from 1 April 2017 with a view to drive further synergies and manage efficiencies. In Water business, the Company closed most of its legacy projects and is currently focusing on complete integrated Water and Waste Water/ Sewage Treatment projects including Embankment & Flood Control, Sewage & Industrial Effluent Treatment and Potable Water Treatment & Distribution in FY 2017.
In FY 2017, five step down subsidiaries of the Company located at Delaware, USA namely KEC International Holdings LLC, KEC Brazil LLC, KEC Mexico LLC, KEC Transmission LLC and KEC US LLC have been merged with SAE Towers Holdings LLC, a step down subsidiary at Delaware, USA with effect from 29 September 2017.
As on March 31, 2018, the Company has seventeen subsidiaries comprising of seven direct subsidiaries and ten step down subsidiaries.
The Company acquired 2.10% shares in Al Sharif Group & KEC Limited Company, a Joint Venture company located in Saudi Arabia. Consequent to such acquisition, the shareholding of the Company increased from 49% to 51.10% and the Joint Venture Company became a subsidiary of the Company with effect from 26 March 2018.
In the South- American region, the Company signed two large EPC contracts to execute 546 km of transmission lines in Brazil during FY 2018. The Company successfully expanded its client portfolio to include CORE, RVNL, IRCON, RITES and PGCIL. It succeeded in diversifying its project portfolio, with about 70% of its order book comprising of composite and signaling & telecommunication works in FY 2018.
In Civil business, the Company successfully executed four complex silos with Slipform and climbing formwork technologies, thereby achieving faster execution and superior quality. Several exclusive tie-ups with OEMs for strategic equipment like batching plants, tower cranes and other equipment has proved beneficial in reducing mobilization time and fast-tracking project execution in FY 2018.
During FY 2018, the Company joined the international Solar EPC market and commissioned a ground mount project in the Kingdom of Saudi Arabia.
During FY 2018, the Company consolidated its manufacturing footprint by shifting operations from its manufacturing plant at Silvassa to Vadodara, thus creating an integrated facility offering the entire gamut of products ranging from EHV, HT and LT Cables. The Company secured its largest ever EHV order for 220 kV cables from Power Grid Corporation of India Limited, helping it establish pre-qualification for similar cables, as well as cabling projects.
During the year 2019, Company completed the 130 MWp turnkey EPC project for APGENCO, taking our cumulative commissioning capacity to more than 348 MWp. It completed landmark projects like 220/66 kV GIS Substation in Drass (part of the Srinagar-Leh Transmission System), the second coldest inhabited place on Earth; 765/400 kV GIS Substation built across nine levels on mountainous slopes; connected India's North-East-West grid to the Southern grid through the Transmission System Beyond Vemagiri' project and erected the tallest River Crossing Towers in Thailand. It produced 40,000 MTs of galvanised steel structures during the year. It commissioned 6 projects ahead of schedule. It completed track laying of the Parauna to Bhua and Venkatachalam to Obulavaripalle sections for Rail Vikas Nigam Limited (RVNL). It commissioned ~30% railway electrification projects in India totaling to 1,576 km. During the year, the Company divested its entire stake in the subsidiary, KEC Bikaner Sikar Transmission Private Limited and consequently ceased to be the subsidiary of the Company w.e.f. February 08, 2019.
During the year 2019-20, the Company incorporated a wholly owned subsidiary in Dubai, namely KEC Towers LLC on November 24, 2019 and acquired its eighth manufacturing unit, a 50,000 MTPA tower manufacturing facility in Dubai. It expanded export footprint to new countries in Africa, the Middle East and SAARC. It commissioned 8 new projects in FY 20. It commissioned railway track laying of 62 track kilometres (TKM). It acquired an automated transmission tower manufacturing facility in Mainland Dubai, with a capacity of 50,000 tonnes per annum in FY 2020. It commissioned its single largest project in terms of capacity, a 150 MWp ground mount project in Rajasthan. The business of the Company diversified portfolio to include RRTS (Regional Rapid Transit System) and Road over bridge (ROB) projects in addition to existing offerings of Overhead Electrification and composite projects.
In FY 2021, the Company commissioned sixth tower manufacturing facility, which was acquired in Dubai. It commissioned 500 kV Pluak Daeng Substation Project in Thailand, which involved the erection of the country's largest Substation gantries, Tanzania's first 400 kV substations at Dodoma and Singida, 400 kV Pugalur - Arasur Transmission Line in Tamil Nadu, part of Power Grid Corporation of India Limited's (PGCIL) prestigious 800 kV Raigarh - Pugalur HVDC project, 400 kV Silchar and Misa Substations in Assam for PGCIL, part of North Eastern Region. It delivered 22% of railway network electrified during the year, totaling to 1,329 route kilometres (RKM); It commissioned railway track laying of 171 RKM. It expanded into technology-enabled areas in Metro Rail, speed upgradation for High-Speed Rail and advanced Signalling & Telecommunication (S&T) systems for Dedicated Freight Corridor. It commissioned a two-lane River Over Bridge in Kochi, six months ahead of schedule by deploying innovative, efficient, and cost-effective techniques.
During 2021-22, the Company incorporated a step-down subsidiary, KEC EPC LLP in Dubai on October 06, 2021. It acquired Spur Infrastructure Private Limited, an EPC company to accelerate the business on October 13, 2021. It commissioned 4 rooftop solar projects aggregating to 13.6 MW, by converting existing industrial plant sheds into solar power generation units. It introduced new railway cables such as 150 & 193 sq. mm. contact wires, feeder, jumper and dropper wires, 125 sq. mm. catenary conductors, signalling power cables, railway OFC cables, and Quad cables for railway applications at its Cables manufacturing units. It completed two Smart City projects in Aurangabad and Bidkin, located in Maharashtra. It commissioned 7 projects ahead of contractual schedule during the year. It widened presence in conventional segments such as speed upgradation, port connectivity, tunnel ventilation and railway siding. It expanded the presence in technology-enabled areas of Urban Infrastructure in Metro electrification - OHE as well as Third Rail, power supply systems, and track laying for reputed Metro clients.
In 2022-23, the Company commissioned first transmission line project in Burkina Faso and received another EPC order for 132 kV substation in the country; commissioned four substations for the critical electrical interconnection project between the countries - Ivory Coast, Liberia, Sierra Leone, and Guinea (CLSG) to Western-African Power Pool (WAPP); commissioned transmission line and a substation project in Mali and Senegal respectively.
In 2023, the Company's wholly owned subsidiary SAE Towers in the Americas, commissioned the EPC projects in Brazil, including 4 transmission lines spanning 900 km and three substations totalling to over 1,000 MVA in Brazil. It launched India's developed Train Collision Avoidance System (KAVACH) and Automatic Block Signalling (ABS), tunnel ventilation, etc.
During the year 2023, the Company introduced new products such as Flat Submersible cables, LV Hybrid cables, PV Solar cables, Concentric cables, Cathodic Protection cables, Railways Signalling Power cables, etc. Further, it developed Green Power and Control cables that are RoHS (Restriction of Hazardous Substances) and REACH compliant. It commissioned 15 transmission line and substation projects in countries such as Malaysia, Thailand, Mali, Burkina Faso, Burundi, and Saudi Arabia. It expanded hardware portfolio with fittings for OPGW, Cross-Rope Steel Wire and Stock Bridge Damping System. Electrified 24% of India's railway network during the year, totalling to 1,564 RKM; commissioned railway track laying of 198 RKM. Contributed to Mission Raftaar (2 x 25 kV Speed upgradation projects) - delivering 11 projects spanning 2,400 RKM; executed more than 35 high rise luxury residential buildings.
In 2022-23, Company worked on 2 projects for Delhi, viz Meerut Regional Rapid Transit System (RRTS), now renamed as RapidX. KEC's first metro project, encompassing viaduct, stations and ballast-less track works, for Kochi Metro Rail Corporation Limited was commissioned from June, 2022; It completed RRTS project - from the Duhai at-grade station to the Sahibabad elevated station; expanded presence in digitalized areas of Metro Electrification - OHE & Third Rail, Power supply systems, and Ballastless track works; demonstrated strong HDD (Horizontal Direction Drilling) execution capabilities with 32', 2.2 km HDD on Brahmani river in Odisha; design, supply, and construction of 225 kV Overhead Transmission Lines (OTL) for SONABEL to connect substations of solar power generation plants and national grid network; installed 400 kV D/C Bogura-Kaliakoir Transmission Line Project (131 km), supply and installation, on turnkey basis, for upgradation of existing Tharamani 230/110/33 kV substation into 400/230- 110/33 kV GIS substation for Tamil Nadu Transmission Corporation Limited (TANTRANSCO); installation, testing, commissioning of standard gauge ballastless track in Main Line from Chembur to Mandale and ballasted, ballastless & special track works in Mandale Depot of Line-2b for MMRDA; Construction of General Civil & Infrastructural Works including land development, process structures, plant and non-plant buildings and Infrastructure Works (road and storm drains) for the greenfield project at Thiruvallur, Tamil Nadu; commissioned the PVC
compounding plant at Vadodara; and commissioned the 16' X 126 Kms Tundla - Gawaria Project.
K E C International Ltd
Directors Reports
K E C International Ltd
Company Background
| Incorporation Year | 2005 |
| Registered Office | RPG House,463 Dr Annie Besant Road Worli
Mumbai,Maharashtra-400030 |
| Telephone | 91-22-66670200,Managing Director |
| Fax | 91-22-66670287 |
H V GoenkaVimal Kejriwal| Company Secretary | Amit Kumar Gupta. |
| Auditor | Price Waterhouse Chartered Accountants LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | Link Intime India Pvt Ltd
C-101 247 Park,L B S Marg,Vikhroli West,Mumbai-400083 |
K E C International Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| H V Goenka | Chairman (Non-Executive) | 2023 |
| G L Mirchandani | Independent Director | 2023 |
| D G Piramal | Independent Director | 2023 |
| A T Vaswani | Independent Director | 2023 |
| S M Trehan | Independent Director | 2023 |
| Nirupama Rao | Independent Director | 2023 |
| Vimal Kejriwal | Managing Director & CEO | 2023 |
| R D Chandak | Independent Director | 2023 |
| Amit Kumar Gupta. | Company Sec. & Compli. Officer | 2023 |
| Vikram S Gandhi | Independent Director | 2023 |
| M S Unnikrishnan | Independent Director | 2023 |
| Vinayak Chatterjee | Director | 2023 |
K E C International Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| CNX500 |
| BSESMALLCA |
| CNXSMALLCA |
| BSEALLCAP |
| INDUSTRIAL |
| SML250 |
| MSL400 |
| NFTYMSC400 |
| NFTYSC250 |
| NF500M5025 |
| NFTYTOTMKT |
| NMIM503020 |
| NMIF503020 |
K E C International Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Construction Contract- Others | NA | 0 | 0 | 0 | 13813.01 |
| Sale of Products | NA | 0 | 0 | 0 | 1332 |
| Scrap | NA | 0 | 0 | 0 | 210.12 |
| Other Operating Revenue | NA | 0 | 0 | 0 | 29.13 |
| Sale of Services | NA | 0 | 0 | 0 | 28.97 |
| Excise duty | NA | 0 | 0 | 0 | 0 |
| Export Incentives | NA | 0 | 0 | 0 | 0 |
| Towers & Structurals | Ton | 0 | 0 | 0 | 0 |
| Transmission & Distribution | NA | 0 | 0 | 0 | 0 |
| Cables | NA | 0 | 0 | 0 | 0 |