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SPML Infra : Annual Report 2021-22








CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

CONTENTS

CORPORATE OVERVIEW

STATUTORY REPORTS

Directors Report

8

Management Discussion and Analysis

25

Report on Corporate Governance

31

FINANCIAL STATEMENTS

Standalone Financial Statements

48

Consolidated Financial Statements

126

SPML INFRA LIMITED | ANNUAL REPORT 2021-22

CHAIRMAN’S

MESSAGE

SUBHASH SETHI

Chairman

SPML Infra Ltd.

Dear esteemed shareholders,

My warm greetings to you all, on the occasion of 75 years of India’s independence. This year we are celebrating “Azadi ka Amrit Mahotsav” with a vision of building a new Aatm Nirbhar Bharat.

Indian businesses are gaining steady momentum with increase capital expenditure, capacity building, good demand, and government’s push for infrastructure, spending in water and renewable energy and the launch of Gati Shakti scheme to fast paced development. Tier II and tier III cities have become front runners in driving demand across sectors. We are entering an era of inclusive growth with bottom-up transformation.

The Government of India is taking every possible step to achieve rapid economic growth. In the last few years, it has increased the spending on infrastructure projects, making it the growth driver of country’s economy. This thrust to infrastructure development is also increasing employment opportunities

and creating demand for goods and services. With strategic planning and suitable policy reforms, government also hopes to make India a manufacturing hub, reducing the cost of logistics and making the produce more competitive. The average time for granting environmental clearances has reduced significantly from an average of more than 150 days in 2019 to less than 90 days, and in some sectors, even within 60 days. These efforts to streamline the tedious process of environmental clearances through digital intervention and transparent mechanism have been well received by the Industry.

This is a year to reset and resolve to move forward from the pandemic disruptions and meet the challenges that 2022 presents. The last two years have been a reckoning of sorts for our ability to confront problems and design and implement solutions. We must be more mindful of the goals we set, the approaches we use to reach them and how the outcomes will affect all people across the nation.

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

The Opportunities

For infrastructure development companies and project professionals, this means drawing upon an entire set of capabilities. We need to supercharge our creativity and innovative thinking, adapt to unusual circumstances and find extraordinary solutions and understand the context of our projects for making human life comfortable. By doing so, we can make ideas a reality and solve India’s most pressing problems, water sustainability.

I believe that the future isn’t something we are waiting for happening. The future is the reality we decide to create and execute with precision and planning. While saying so, my belief system says that every person has a significant impact that they can contribute to a team, to a project and towards nation building regardless of how big or small the role is.

The Hon’ble Prime Minister has made the path breaking announcement of investing INR 100 lakh crore towards infrastructure development under the national infrastructure master plan thus providing an integrated and holistic pathway to Indian economy. We, at SPML Infra are with the Government on this initiative to be a trusted partner in developing robust infrastructure solutions that will make India emerge as a nation with having globally competitive and strong economy.

Water sector having a critical importance for India’s development agenda, is the main focus of the government. The ambitious Jal Jeevan Mission schemes which envisage making piped drinking water available to all Indian households by 2024 have been provided with a massive INR 6.47 Lakh crore budget. Water infrastructure is a harbinger of growth for all other sectors and our presence in this sector has further been strengthened that will enable SPML Infra to receive and execute large and complex projects with commitment and dedication.

Project Implementation

SPML Infra being a project driven organization, everything that we do is a project – whether it’s a one-day,10-day,six-months or year long. We have developed dedicated team of professionals and project managers to make sure that the entire process of project execution from bidding to design and implementation is streamlined, duly supported with technological intervention. At SPML Infra, we are trying to make sure each project that we undertake and execute should create value for the future. If we don’t consider the people who are going to be using these solutions, we are going to end up with infrastructure that doesn’t fit us, and this is something that we have to focus making it people centric with long term sustainability.

Technology

Technology has become a major game changer in every walk of life. The pandemic has opened the doors to a lot of things that earlier we didn’t think could have been done virtually. From remote work culture to online presence and science based solutions that can produce reliable and positive changes. The technology implementation has been expedited after covid disruptions and SPML Infra has implemented advance

technologies and contemporary solutions to streamline the project planning, execution, monitoring and overall functioning of the organization which is being coordinated and controlled through technology. The modern management system, automation and technological intervention in our projects are helping us to have better control over the challenging situations while adhering to quality, cost and time management.

Inclusivity

At SPML Infra, we have developed a corporate culture that embraces different perspectives and ideas that will enable creative thinking and adaptability and result in improved business outcomes. The organization that started in 1981 is continually expanding to newer areas and we are getting more representation from women and socially deprived section of the society making an inclusive work culture that goes beyond simple growth to have people around who understand our vision.

Highlights from the Financial Year

New Business:

  • SPML Infra received its single largest project order under ‘Jal Jeevan Mission’ valued at INR 1158 Crore from Govt. of Rajasthan for Isarda Dausa Water Supply Scheme to provide clean drinking water facilities to 25 Lakh people in 1256 villages and 5 towns in Dausa and Sawai Madhopur districts.

Project Completion:

  • During the year, SPML Infra has completed several projects including water supply scheme under ‘Jal Jeevan Mission’ in Manipur that was inaugurated by the Hon’ble Chief Minister of Manipur; several power substation projects in Tripura which were inaugurated by the Hon’ble Finance Minister of India and Hon’ble Chief Minister and Dy. Chief Minister of Tripura respectively.
  • We received the Physical Completion Certificate for Sauni 2 project in Gujarat, and Taken Over Certificate (TOC) for several power substation projects including Burdwan, Angul, and Murshidabad.
  • We have financially closed the Pattuvam Project under
    Kerala Water Authority.
  • We have started 10 years of O&M of water supply project in Dhanassar, Rajasthan after project completion.

Arbitration Success:

  • Company has received the arbitration award of INR 712 crore in its favour out of which INR 287 crore is already deposited in an escrow account.
  • It has already filed construction claims to the tune of INR 3500 crore and further planning to file another INR 2000 crore claims.

Digital Initiative & Up-skilling of Human Resources:

  • The company implemented new age HR Portal ‘Darwin Box’ to digitally collect and communicate all manpower related

SPML INFRA LIMITED | ANNUAL REPORT 2021-22

matters from ‘Hire to Retire’. With the implementation, company has gained significant advantage in minimizing the human interference and streamline the process effectively through digitization.

  • The company has successfully completed the implementation of Wrench System (Phase-I) with
    Engineering, Procurement, Correspondence, and Construction Management module. It has empowered the company to digitize the process of Concept to Commissioning while digitally storing all important documents for easy access.
  • The company has also implemented ‘Vakildesk’, legal management software for efficiently managing construction claims and legal matters. It is also helpful in storing all legal documents digitally enhancing better time management practises with courts of law and legal professionals.

Other Notable Achievements:

  • SPML Infra has come a long way, completed 40 years in business in August 2021. It is a matter of great pride and joy for this achievement despite the competition and volatile business situation.
  • The international standing of our company has again been ratified by Global Water Intelligence, London with SPML
    Infra continue to feature amongst the World’s Top 50 Private Water Companies, again in 2021.
  • At all India level, SPML Infra has been selected as one of India’s Top 100 Real Estate & Infra Companies, listed at No. 15.
  • We have received latest version of ISO Certifications for
    Quality, Health & Safety and Environmental concerns.
  • In terms of Debt-Restructuring, we have made substantial development and sanction proposals of the major banks
    (lender) have been forwarded by them to their competent authorities for the final approval.

Financial Performance in a Challenging Year

This has been a year of recovery and an indicator of the growth that is waiting to be tapped. In the face of widespread change, the company has shown remarkable resilience and adaptability, coming out stronger after global disruptions from the pandemic.

Financial performance has been on a growth path and for FY22 on a consolidated basis the revenue stood at INR 981.10 crore as against INR 746.62 crore in FY21. The PAT at INR 0.32 crore for FY22 as against loss of INR -117.20 crore in FY21 shows the consolidated performance is strong.

As regards the revenue on standalone basis in FY22 stood at INR 870.09 crore as against INR 658.58 crore in FY21. Net profit for FY22 was INR 9.98 crore as against loss of INR -107.17 crore posted in FY21.

For any infrastructure company it is the order book that always matters. To put the order book in perspective, as on March

2022, SPML Infra has order book worth of INR 2500 crore from the esteemed clients in the state like Rajasthan, Gujarat, Uttar Pradesh etc. including several projects under the most focused scheme – Jal Jeevan Mission. The company is currently executing about 40 projects in water, power, irrigation and sanitation sectors. With the debt issues being taken care for, restructuring expected soon; improvement inflow of order book in the current financial year can be predicted strong.

The Company is quite hopeful that with the support of the Lenders on the ongoing Debt Resolution the Company will be able to achieve the new height of growth on the basis of enormous business opportunity available in the market on the water EPC Sector.

Purposeful Commitment

We look at the future with determined enthusiasm. With water sector becoming the harbinger of economic growth and development of other sectors, it offers significant prospect for growth aided by a massive government push for water supply schemes. The Union Budget 2022-23 saw a significant increase in proposed capital expenditure, vindicating the government’s sustained focus on developing water infrastructure in the country.

Since inception, we have built trust in SPML as a brand by ensuring consistency in quality and reliability of service to our esteemed clients. This is perhaps the most valuable asset we have created over the past four decades. We pledge to strengthen this trust by not only delivering on our promise of providing innovative and sustainable clean drinking water solutions, but also ensuring that the sector takes the lead in building a stronger and healthier India. The company is well- equipped to meet the expanding demand of water sector. Our guiding philosophy, which encompasses entrepreneurship, technology intervention, sustainability & inclusiveness and empowerment, has readied our company for a future commensurate with India’s growth strategy and making water available to all citizens. We, at SPML Infra, are pledged to support the Government in their endeavour of Har Ghar Jal to realize the vision of our Hon’ble Prime Minister and making India, a $5 trillion economy.

On behalf of the Company, I would like to thank the Directors for their valuable time and contributions to the Board of the Company. I express my gratitude towards all our shareholders, bankers, auditors, suppliers, sub-contractors, associates and all others for their continued trust in us. I thank all our employees for their commitment and engagement towards building a strong, agile and responsible organisation. We will continue to draw inspiration from your support to take on new challenges in our journey to meet our ambitions for the future.

Warm regards,

Subhash Sethi

Chairman

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Disclaimer

SPML Infra Ltd. published this content on 04 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 September 2022 06:09:01 UTC.

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All news about SPML INFRA LIMITED

Sales 2021 6 829 M
85,7 M
85,7 M
Net income 2021 -1 172 M
-14,7 M
-14,7 M
Net Debt 2021 18 039 M
226 M
226 M
P/E ratio 2021 -0,31x
Yield 2021
Capitalization 2 253 M
28,3 M
28,3 M
EV / Sales 2020 0,88x
EV / Sales 2021 2,69x
Nbr of Employees 325
Free-Float 31,8%

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