Va Tech Wabag Ltd
Directors Reports
Dear Members,
The Board of Directors of your Company is pleased to present its Twenty
Eighth (28th) report on the business and operational performance of the Company together
with the allocations from various audited standalone and consolidated Financial Statements
for the financial year ended March . 31, 2023
FINANCIAL / OPERATIONAL HIGHLIGHTS
The key highlights of standalone and consolidated financials for the
financial year ended March 31, 2023 are summarised below: (INR Lakhs)
| Particulars |
FY 2022–23 |
|
Standalone |
Consolidated |
| Total Income (including Revenue from Operations and other
Income) |
238,587 |
301,408 |
| Profit before interest, tax & depreciation (EBITDA) |
32,212 |
34,358 |
| Profit before tax excluding exceptional items |
29,128 |
30,606 |
| Profit before tax |
205 |
1,683 |
| Provision for tax |
78 |
590 |
| Profit after tax attributable to owners of the parent |
127 |
1,093 |
BUSINESS ENVIRONMENT
The global economy after its encounter with the pandemic, geo-political
tensions, inflation, global banking crisis, and other key factors appears to have moved on
staging a full recovery and positioning itself to ascend to the pre-pandemic growth path
in FY 2022-23.
In the water sector, there is an increasing demand for innovative
solutions to address water scarcity, pollution, and infrastructure challenges witnessing
significant opportunities for growth. Governments and multi-lateral agencies worldwide are
investing in projects that promote water security, such as the development of water
recycling initiatives and smart water management technologies. Furthermore, there is a
growing trend towards integrating water and energy systems, recognizing the interconnected
nature of these sectors. Your company has actively collaborated with Financial
Institutions worldwide, showing a revitalized focus on the Water Sector.
We have garnered attention through initiatives driven by Sustainable
Development Goals (SDGs) and Environment, Social, Governance (ESG) principles, which have
attracted interest from Sustainability and Green Funds and have received significant
Institutions globally, encompassing active, proposed, and pipeline stages.
Your Company offers dynamic customizable technological water solutions
powered by renewable energy or energy-efficient processes and is well-positioned to
capitalize on this synergy.
COMPANY'S PERFORMANCE
* Your Company has a healthy order book of over INR 13,21,900
Lakhs as on March 31, 2023 (including framework contracts) supported by order intake of
INR 6,84,400 Lakhs.
* Total Consolidated Income for the FY 2022-23 was INR 3,01,408
Lakhs as against INR 3,01,169 Lakhs in the previous year and the total Standalone Income
for the FY 2022-23 was INR 2,38,587 Lakhs as against INR 2,17,087 Lakhs in the previous
year.
* Consolidated and Standalone Profit After Tax attributable to owners
of the parent for the FY 2022-23 (before exceptional items) was INR 1,285 Lakhs and INR
127 Lakhs respectively as against INR 13,191 Lakhs and INR 9,218 Lakhs respectively in the
previous year.
* Consolidated and Standalone EPS (before exceptional items) of the
Company for the FY 2022-23 was INR 36.87 as against INR 21.21 in the previous year and INR
35.01 as against INR 14.82 in the previous year respectively.
Your Company has achieved another year of profitable growth i.e.,
profits growing at a rate faster than revenue growth. The Consolidated EBITDA before
exceptional items grew by 43% YoY and the Consolidated PAT before exceptional items grew
by 74% YoY. Your Company closed this financial year at a historic high order book position
of over INR 13,000 Crore, thereby providing a robust future revenue visibility.
DETAILS OF MATERIAL CHANGES AND COMMITMENTS
In terms of Section 134(3)(l) of the Companies Act, 2013 ("the
Act"), except as disclosed elsewhere in this Report, no material changes or
commitments affecting the financial position of the Company have occurred between the end
of the financial year and the date of this report.
DIVIDEND
Taking into account the Business strategy and investment requirements
for growth capital and Hybrid Annuity Model (HAM) projects like Namami Gange Programme,
etc. which will enhance the Shareholders value on a long term basis, the Board of
Directors of your Company have decided to conserve funds and hence have not
recommended any dividend for the FY 2022-23.
Pursuant to Regulation 43A of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ("SEBI LODR"), the top 1,000 listed
entities based on market capitalisation, calculated as on end of every financial year are
required to formulate a Dividend Distribution Policy which shall be disclosed on the
website of the listed entity and a web link shall also be provided in the company's
Annual Reports. Accordingly, the Dividend Distribution Policy of the Company can be
accessed using the following link: https://www.wabag.com/wp-content/uploads/2018/06/
Dividend_Distribution_Policy.pdf
UNPAID/ UNCLAIMED DIVIDEND AND SHARES
Pursuant to the provisions of Section 124, 125 and other applicable
provisions of the Companies Act, 2013 ("the Act") read with the Investor
Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules,
2016 ("IEPF Rules"), the dividend which remains unpaid/ unclaimed for a period
of seven (7) years from the date of transfer to the unpaid dividend account along with the
shares on which dividend has not been encashed by the Members of the Company for seven (7)
consecutive years has to be transferred to Investor Education and Protection Fund
("IEPF") within the prescribed time.
During the year under review, unclaimed dividend for the FY 2014-15
amounting to INR 60,516/- pertaining to 383 Members and 463 shares pertaining to 21
Members who had not claimed their dividends for seven (7) consecutive years have been
transferred to IEPF Authority during September 2022.
The Company sends out suitable communication and reminder letters, from
time to time, through its Registrar and Transfer Agent (RTA) to the respective Members
whose dividends are unpaid/unclaimed and/or due for transfer to IEPF and provides
facilitation/support to Members as and when required, to enable them to claim their
dividend entitlements before it is transferred to IEPF Authority in accordance with IEPF
Rules.
Unclaimed dividend for the FY 2015-16 and shares in respect of which
dividends have remained unclaimed for the last seven (7) consecutive years as on due date
shall become due for transfer to IEPF Authority in August 2023.
The details of Members and their unclaimed dividend/ equity shares
entitlements / transferred / liable to be transferred to IEPF Authority are uploaded on
the Company's website www.wabag.com . The Members are requested to approach the
Company and/or RTA for any support to claim their entitlements, if any.
RESERVES
The Board of Directors of your Company has decided to retain the entire
amount of profit in the profit and loss account. Accordingly, the Company has not
transferred any amount to ‘Reserves' for the financial year ended March 31,
2023.
SHARE CAPITAL
The issued, subscribed and paid up share capital of the Company
continue to remain at INR 12,43,80,856/- (Indian Rupees Twelve Crore Forty Three Lakhs
Eighty Thousand Eight Hundred and Fifty Six only) as on March 31, 2023 consisting of
6,21,90,428 equity shares of face value of INR 2/- each without any change.
NON-CONVERTIBLE DEBENTURES (NCDs)
The Board of Directors of the Company has, at its meeting held on
November 25, 2022, considered and approved the proposal to issue secured, unlisted,
redeemable, transferable, rated and interest bearing NCDs of face value of INR 10,000 each
with a total value of INR 200 Crore to be issued to Asian Development Bank in one or more
tranches/ series. The Company is in the process of seeking necessary approvals,
permissions, consents and sanctions as required by the arrangement.
DEPOSITORY SYSTEM
Your Company has established connectivity with the National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) through
KFin Technologies Limited, the Registrar and Transfer Agent (RTA) for the equity shares.
The shares of your Company are tradable only in the electronic form.
As on March 31, 2023, the Company's total paid up capital
representing 6,21,90,162 equity shares wherein 99.99% of equity shares are held in
dematerialised form. The Company through various modes of communication to the Members
encourages them to hold the shares in dematerialised form. As on the financial year ended
March 31, 2023, only 266 equity shares belonging to seven (7) Members are held in physical
mode.
CREDIT RATING
The India Ratings & Research (wholly-owned subsidiary of Fitch
group), the Credit Rating Agency, affirmed the rating "IND A+" with
"Stable" Outlook and upgraded Short-Term Debt rating to "IND A1+".
The said ratings has been disclosed to the Stock Exchanges and this information is
available on the Company's website www.wabag.com under Investor section.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis of your Company's
performance forms part of this Annual Report.
CORPORATE GOVERNANCE
Your Company is committed to the highest standards of Corporate
Governance and ethics. At WABAG, Corporate Governance is fundamental to the business and
core to its existence. Your Company has implemented several best Corporate Governance
practices to enhance the Shareholders value on a long term basis and respects Shareholders
rights in all our strategic and business related decision. Your Company ensures best
practices throughout the business cycle and follows a transparent procedure in sharing
timely information to all its Stakeholders. Your Company places great emphasis on business
ethics and ensures best practices throughout the business cycle. Pursuant to Regulation 34
of SEBI LODR, the Report on Corporate Governance for the financial year ended March 31,
2023, is presented in a separate section, forming part of this Annual Report.
A certificate confirming compliance of conditions of Corporate
Governance, as stipulated under the SEBI LODR, also forms part of this Annual Report. A
Compliance Report on applicable compliances of SEBI Circular, Notifications, and
Regulations etc., issued by Practicing Company Secretary was filed with the Stock
Exchanges.
KEY PROJECT UPDATES
CHENNAI METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD - SWRO –
INDIA
Your Company in joint venture with METITO Overseas Limited, has bagged
a design, build, operate (DBO) order from Chennai Metropolitan Water Supply and Sewerage
Board (CMWSSB) for building 400 million litres per day (MLD) sea water reverse osmosis
(SWRO) desalination plant at a total cost of about INR 4,400 Crore. The new Plant will
come up at Perur, near the present 100 MLD Desalination plant built by WABAG on the East
Coast Road, Chennai. This is the largest order for the Company and once completed, this
plant will be the largest desalination plant in the South East Asian Region.
The new desalination plant will cater to the drinking water needs of
the entire Chennai City, including added areas
Tambaram and Pallavaram. Around half of Chennai's estimated total
need of 1560 MLD will be met from Desalination Plants.
The project is funded by Japan International Cooperation Agency (JICA)
and seeks to improve Chennai's water security through a stable source of drinking
water in the form of desalination.
The contract includes design, engineering, procurement, construction,
installation, testing, and commissioning of the 400 MLD SWRO desalination plant and the
associated sea water intake system over 42 months followed by 20 years of operation &
maintenance (O&M).
This project involves the construction of intake and outfall structure
along with the required pipelines, construction of pre-treatment processes, SWRO
desalination plant, remineralisation plant, GIS-based electrical substations and other
allied processes and units to build a complete operating plant within the proposed site
premises for the production of 400 MLD product water of the required drinking water
quality.
After successful completion of testing and commissioning of works, the
Plant will be operated and maintained for 20 years under Design Build Operate (DBO) basis.
Once commissioned, this project makes Chennai "Desalination
Capital of India" with a production of about 750 MLD of desalinated water along the
coast of Chennai. With the 400 MLD SWRO desalination plant, WABAG will be responsible for
about 70 per cent of the water production through desalination units in Chennai.
RELIANCE INDUSTRIES LIMITED - SEA WATER REVERSE OSMOSIS – INDIA
Your Company is executing 2 x 1100 M3/hr. SWRO (Sea Water Reverse
Osmosis) based Desalination Plant at Jamnagar for Reliance Industries Limited (RIL).
The Treated water (Process water) will cater the requirement of
RIL's new energy business, including renewable energy, Hydrogen economy business.
This is a repeat order (extension) from Reliance Industries, as we have
executed a 24 MLD SWRO plant in the same premises. This repeat order echoes RIL's
confidence and trust on WABAG. The Order value of EPC contract is INR 427 Crore.
The new EPC order includes design, engineering, procurement, supply,
construction, erection, pre-part in the commissioning, commissioning and performance
guarantee test run of the seawater reverse osmosis (SWRO) plant, slated to be built on the
premises of RIL's mammoth refinery at Jamnagar.
This plant, which is scheduled to be completed over a 21-month period,
will employ state-of-the-art pre-treatment in the form of lamella clarification, Dissolved
Air Filtration and Ultrafiltration (UF) followed by Reverse Osmosis (RO) technologies to
convert seawater into process water. Currently, on execution front, Project Progress is on
track as per agreed schedule, we have achieved overall 60% physical progress.
On Execution front for Engineering & Procurement, Detailed
Engineering is completed including all supplier's engineering deliverable.
Manufacturing of all items are at various stage at supplier's shop. Some of the major
items are delivered at site. Delivery completion is expected by December 2023.
On Construction front, Civil works are on full swing for all Major
structures, which are expected to be completed by November 2023. Erection work is expected
to be commenced by end of June 2023. Plant commissioning is expected to be done as per
agreed schedule.
ONE CITY ONE OPERATOR – CLEAN GANGE MISSION PROJECT – INDIA
Your Company is executing INR 1,858 Crore worth order secured from
State Mission for Clean Ganga Uttar Pradesh since FY 2019-20 towards Operation,
Maintenance and Management of the Sewage treatment and network infrastructure in the
cities of Agra and Ghaziabad for a period of ten (10) years, extendable for an additional
period of five (5) years.
This is the first initiative across the country on the "One City
One Operator" model. Your Company will manage, operate and maintain 22 Sewage
Treatment Plants (STP), 70 Pumping Stations and underground network of over 4,200
kilometers with the objective of providing round the clock uninterrupted operations.
Your Company shall also improve, rehabilitate and up-grade facilities related to systems,
structures and equipments etc., associated with the Sewage Treatment Plants (STP) and
underground sewage network systems.
This project will ensure treatment of over 672 MLD in both cities of
Agra and Ghaziabad put together, adhering to national treatment standards thus
providing cleaner and healthier eco system to the three (3) Million population of
Agra and Ghaziabad. Your Company is proud to play a significant rejuvenation of river
Yamuna, by treating over 80% of the sewage generated in both the cities.
In Agra and Ghaziabad, your Company is taking several steps to
implement best practices in operation and maintenance of STP's and pumping stations,
so that sustainable and trouble free operations are achieved.
Your Company has taken several steps to eliminate direct manual
intervention in underground sewage network and this is achieved by deploying jetting
machines, super sucker machines for desilting and mini jetting for addressing issues in
narrow streams. Through these initiatives, your Company has efficient improvement through
technological intervention while maintaining safety of workmen. Your Company is determined
to attain Operational Excellence through reliability, trouble free operations and enhanced
customer services.
NAMAMI GANGE PROJECT – INDIA
A) BIHAR URBAN INFRASTRUCTURE DEVELOPMENT CORPORATION HAM PROJECT
– INDIA
Your Company, a leading Pure Play Water Technology Indian Multinational
Company is executing the largest order under Namami Gange Programme worth INR 1,187 Crore
secured from Bihar Urban Infrastructure Development Corporation (BUIDCO) under the
prestigious National Mission for Clean Ganga (‘NMCG') Scheme to build Sewage
Treatment Plants (STP) of 150 MLD capacity along with sewerage network of over 453 km in
Digha and Kankarbagh zones of Patna, one of the most populous cities on the banks of River
Ganga.
This project comprises Design, Build and Operate (DBO) scope worth
about INR 940 Crore and Hybrid Annuity Model (HAM) scope worth about INR 247 Crore. 40% of
CAPEX of the EPC part of the HAM portion will be paid in the form of grant during
construction and 60% will be paid as Annuity over 15 years, along with the OPEX. This will
be the first water project on HAM, in the State.
At Digha, the scope comprises designing and building a 100 MLD STP,
Interception and Diversion Work, two (2) Sewage Pumping stations and survey, redesigning
and building a new sewerage network of about 300 kilometres designing. In Kankarbagh, the
scope comprises building a 50 MLD STP, Flow Diversion Works and all appurtenant structures
and survey, redesigning and building new sewerage network of about 150 kilometres.
Powered with resource recovery model, the STPs are designed to ensure minimum
foot print and will be enabled to produce green energy from bio-gas leading to
lower OPEX to run the plants. Your Company completed the financial closure of its Hybrid
Annuity Model (HAM) project received from BUIDCO. Both the DBO and HAM scope of projects
are under construction and progressing well.
B) KOLKATA METROPOLITAN DEVELOPMENT AUTHORITY HAM PROJECT – INDIA
This KMDA Bally, Arupara, Baranagar project which is under execution,
consists of construction of three (3) STPs at Arupara (65 MLD), Bally (40 MLD) and at
Baranagar (60 MLD), associated pumping system and sewage transmission lines. Your Company
will execute the Engineering, Procurement and Construction (EPC) portion of this project
over twenty four (24) months followed by O&M of fifteen (15) years. This project is
implemented by National Mission for Clean Ganga (‘NMCG') and Kolkata
Metropolitan Development Authority (‘KMDA') with financial assistance from World
Bank.
Your Company completed the financial closure for this Hybrid Annuity
Model (‘HAM') project received from KMDA. The project debt requirement will be
funded by a consortium of International Finance Corporation (‘IFC') and Tata
Cleantech Capital Limited (‘TCCL'). IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector in developing
countries.
In line with our "asset-light" principle, your Company signed
an agreement with Kathari Water Management Private Limited (‘Kathari Water'), a
wholly owned subsidiary of EverSource Capital, Fund Manager for Green Growth Equity Fund
(‘GGEF') who will be the investment partner in the project. GGEF is established
with anchor investment from National Investment and Infrastructure Fund (‘NIIF')
anchored by Government of India and Foreign, Commonwealth & Development Office
(‘FCDO'), Government of UK.
The project with a cumulative Wastewater treatment capacity of 187 MLD
(165 MLD of new plant, together with 22 MLD of existing facility) when completed, will
contribute to eliminating the discharge of untreated sewage into the Holy River Ganga.
This shall be the first Water Project on HAM, in the State. While WABAG has been
associated with KMDA for projects on EPC/DBO type of contracts, your Company extends
association with reputed clients on PPP HAM type of contracts too.
The plant is moving towards completion, having completed substantial
amount of construction at site.
Multiple ESHS audits, monitoring mechanisms and training programs have
enabled in executing the project in a safe and environmentally sustainable manner.
With continuous engagement and support from all Stakeholders, the
project is nearing completion.
C) GNN HAM PROJECT, GHAZIABAD, UTTAR PRADESH – INDIA
WABAG, through its wholly owned subsidiary Ghaziabad Water Solutions
Private Limited (SPV entity), has signed a concession agreement with Ghaziabad Nagar Nigam
(GNN) with the state of Uttar Pradesh, for a new 40 MLD Tertiary Treatment Plant (TTP)
under Hybrid Annuity Model (HAM). Under a Design-Build-Operate (DBO) contract with SPV
worth INR 594 Crore, WABAG will construct the new plant over two (2) years and operate the
facilities, including the existing upstream 56 MLD Sewage Treatment Plant up to a period
of fifteen (15) years following the start of commercial operations. The construction phase
of the project will be co-funded by the client through one of the first municipal Green
Bonds in India for a water treatment plant.
Ghaziabad TTRO will be the largest plant of its type under HAM in India
and will contribute to a sustainable water Management. It is the second TTRO plant from
WABAG following the 45 MLD TTRO plant at Koyambedu, Chennai in the State of Tamil Nadu
which was commissioned in 2019 and is being operated by WABAG till 2035.
The Tertiary treatment plant is similar to the Koyambedu TTRO Plant and
will process treated wastewater from an existing 56 MLD STP to produce industrial-grade
water. This reclaimed water will be used by industries located in Sahibabad Industrial
Estate in the Ghaziabad Municipal area. Upon commissioning of the new plant, the
industries will be mandated to use the TTRO treated water, instead of presently used
ground water, which is already depleting fast.
Another major success that further strengthens WABAG's position as
a leading water recycling expert, the project will receive funds from green bonds,
which is first of its kind in the country . Ghaziabad Nagar Nigam is debt-free and has
maintained a revenue surplus position in the last few years, according to India Ratings.
KANPUR CETP – INDIA
Your Company is currently executing INR 520 Crore worth order secured
from Jajmau Tannery Effluent Treatment Association (JTETA) towards Engineering,
Procurement, Construction, Operation & Maintenance of a 20 MLD Common Effluent
Treatment Plant (CETP) along with treated sewage dilution facility for Jajmau leather
cluster, in the state of Uttar Pradesh.
The scope of this Design and Build contract includes Design,
Engineering, Supply, Erection, Construction and Commissioning of 20 MLD CETP. The CETP
scheme includes pre-treatment, sulphide removal, denitrification, two stage extended
aeration and tertiary treatment consisting of clarification, quartz filtration and
ultra-filtration. The scope also includes setting up a collection and conveyance system,
to collect and pump the effluent from various tanneries up to the treatment plant; setting
up common chrome recovery unit, to treat chrome tanning effluents by recovering the chrome
so that they can be reused in the tanneries and setting up a pilot plant with a zero
liquid discharge facility. The salient features of the project are effluent from 380
Tanneries will be treated as per the revised norms of Ministry of Environment and will be
released for irrigation purpose. The proposed 20 MLD CETP project will have treatment
process up to tertiary treatment including Ultra Filtration in Phase-I and an add-on
Modular RO system in Phase-II. Spent
Chrome liquor collection from each Tannery unit would be
transported through tankers to CCRU and the recovered chrome shall be sent through drums
or sold. This will ensure that the chrome liquor is uniformly treated from all tanneries. Zero
Liquid Discharge (ZLD) based field scale pilot plant with a capacity of 200 KLD is
developed for Research and Development activities to demonstrate high recovery of water
(>95%) and high purity sodium chloride and sodium sulphate salts.
Post successful commissioning, your Company will also
Operate & Maintain the above plants for a period of five (5) years.
The construction of this plant is being funded under the prestigious Namami Gange
Programme and the Operation & Maintenance will be self-financed by JTETA.
Work is in full swing and the Common Effluent Treatment Plant (CETP) is
expected to be commissioned by early next year.
DHAKAWATERSUPPLY&SEWERAGEAUTHORITY
– SEWAGE TREATMENT PLANT – BANGLADESH
We are pleased to report that your Company has secured a breakthrough
project in a new country,
Bangladesh. This prestigious project is going to be executed for Dhaka
Water and Sewerage Authority. The 200 Million litres per day (MLD) Pagla Wastewater
project was secured amidst tough global competition. This is a first of its kind project
in Bangladesh wherebio gas engines will be used to generate power from the digested
sludge. The project has an execution period of 40 months followed by 60 months (5
years) of Comprehensive Operation and Maintenance. This project is funded by the World
Bank, Asian Infrastructure and Investment Bank (AIIB) and the Government of Bangladesh.
The total project value is about INR 800 Crore.
The state of the art wastewater facility will be based on the activated
sludge process using lamella clarifiers to ensure that the land utilization is optimised,
further the plant will have odour control facilities to ensure an odour free environment.
The sludge produced from the process will then be digested and the methane gas produced by
this process of digestion will then be fed to
Bio Gas engines to produce captive power. This power generated will
cover upto 40% of the power required for operating this plant. The plant will be executed
under the strict guidelines on ESG published by the World Bank which is in line
with your company's internal ESG goals also.
Your Company has a stated objective of focusing on wastewater
treatment, securing more international orders in new territories and focus on jobs funded
by multilateral funding organizations. This project falls into this sweet spot and is a
testament to our commitment to walk the talk.
300 MLD INDEPENDENT STP AT NEW JEDDAH AIRPORT- SAUDI ARABIA
This project to execute the 300 MLD Jeddah Airport 2
Independent Sewage Treatment Plant (ISTP) at Jeddah, Saudi Arabia is a
repeat order for your Company in Saudi Arabia secured through Saudi Services for
Electro Mechanical Works Company (‘SSEM'). This plant,
designed to treat 300 MLD is expandable to 500 MLD of wastewater treatment, will be built
by your Company with the state-of-the-art NEREDA? technology for the first time in
the region, asustainable and cost-effective wastewater treatment technology that
purifies water using the unique features of aerobic granular biomass for SSEM.
The project is progressing well and pre commissioning is completed. The
project is under the final commissioning stage and performance test is to be completed.
Your Company is extremely delighted to be part of the
Vision 2030 of the Kingdom of Saudi Arabia that encourages private
sector participation in achieving its economic development goals. In partnership with
SSEM, your Company is happy to develop this sustainable wastewater infrastructure with the
latest technology to be deployed for the first time in the region. This project will
further expand your Company's growing footprint in the Middle East region.
JUBAIL STP PROJECT – SAUDI ARABIA
This STP project in the Kingdom of Saudi Arabia is to Design and Build
a large scale sewage treatment plant, capacity 120 MLD for Jubail Industrial City for a
total contract value of around half a billion Saudi
Riyals equivalent to approx. USD 126 Million. This
STP project in Saudi Arabia being implemented for MARAFIQ, is
progressing well and has successfully achieved Completion of performance tests and we have
obtained COIA (Certificate of Initial Acceptance).
The works have progressed well with utmost focus on HSE where the
project has achieved major milestone of 7.3 Million safe man-hours. Focus now is on to
complete the one (1) year Defects liability period and obtain COFA (Certificate of Final
Acceptance by early 2024).
SOUTH DOHA STP PROJECT – QATAR
This EPC project from Pubic Works Authority (ASHGAL) is for
rehabilitation of South Doha Sewerage Treatment facility using clarification,
filtrationand aerobic digestion technologies to treat additional sewage which will be
generated from the football stadium built for the FIFA
World Cup 2022. This breakthrough EPC order includes rehabilitation of
the existing plant while simultaneously operating it till the plant is constructed for new
capacity.
In this project, detailed engineering is completed, all long lead
materials have been ordered and delivered to site. Non-process unit rehabilitation work is
completed and handed over. Process unit's rehabilitation work is progressing well and
smoothly in sync with Client's operations team requirement. Civil works for new
unit's
Digesters, Side Stream Filtration unit, Bulk Chemical storage completed
and MEICA works also have progressed significantly.
ZARAT PROJECT – TUNISIA
This project from SONEDE is to Design and Build a
50 MLD Sea Water Desalination plant in Tunisia, expandable upto 100
MLD. The project is a DBO contract, funded by KfW Germany and will be built using State
of the Art Sea Water Reverse Osmosis with energy recovery system.
The project has progressed well with engineering and order nearing
completion, civil works at site in full swing, equipment deliveries and installation
commenced, MEICA items deliveries to site commenced with majority of items are at advanced
stage of manufacturing completion. Intake and outfall pipes delivered to site.
PUBLIC UTILITIES BOARD (PUB) – SINGAPORE
The Public Utilities Board (PUB) has awarded WABAG the contract to
replace polymer membranes at the Chestnut waterworks with ceramic membranes. The
project is valued at 17 Million Euros (INR 140 Crore) and involves replacing membranes for
the water treatment plant with a total capacity of 300 MLD, as well as pipeline and
construction work. This is a significant milestone for WABAG as it will be our first
reference plant for ceramic membranes.
AGCC – RUSSIA
Your Company has consolidated its market position in the Oil and Gas
sector further, by securing a breakthrough Engineering and Procurement (‘EP')
order from Amur Gas Chemical Complex LLC.,
(‘AGCC') in Russia. AGCC is a joint venture of SIBUR Holding
Russia and China Petroleum & Chemical Corporation (‘Sinopec'), China. AGCC
is set to become one of the world's largest basic polymer production facilities.
WABAG shall be the technology and system integrator for the Integrated Treatment
Facilities (Waste Water
Treatment unit). WABAG shall deploy advanced technologies to treat
waste water streams. The facility will have a concentrate evaporator unit to maintain
Zero Liquid Discharge (ZLD) and the sludge will be de-watered and
dried. The facility will be designed to
Recycle & Reuse the waste water released from the petrochemical
unit, substituting about 25% of the raw water intake requirement. The deployment of ZLD
and Recycle & Re-use makes the facility environmentally friendly and meets stringent
environmental regulations. WABAG shall perform the scope of Design, Engineering,
Procurement, Supply and Supervision of the facilities during erection
and commissioning including process and technology equipment, piping system, electrical,
instrumentation / control systems and building and architectural materials.
This technology dominant breakthrough order in the CIS region,
especially in the Russian Federation also marks WABAG's largest order in the Oil
and Gas sector. This order from a marquee customer in the Oil and Gas sector,
re-affirms our technological superiority and execution excellence, built over the years.
Your
Company is proud to have secured this contract amidst stiff
international competition and we are confident that this project will be another landmark
reference for your Company. As on March 31, 2023, the project has achieved a cumulative
progress of over 35%.
PUROLITE S.R.L, ROMANIA
WABAG Water Services S.R.L., Romania (‘WABAG Romania'), our
European subsidiary, secured a repeat order from Purolite S.R.L, Romania
(‘Purolite') worth about INR 260 Crore (EUR 30 Million) towards upgrading the
Industrial Wastewater Treatment Plant (‘WWTP') in Romania. The contract will be
an Engineering & Procurement (‘EP') scope contract which includes design
& engineering, equipment supply, installation, commissioning and start-up of the
Purolite Victoria WWTP. The project is scheduled to be executed over a 24-month period.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORTING
Your Company being one of the top 1000 listed entities (by market
capitalisation) had been reporting the Business Responsibility report upto the financial
year ended March 31, 2022. The SEBI vide its circular dated May 10, 2021, had introduced a
new reporting requirement on Environmental, Social and Governance (ESG) parameters called
the "Business Responsibility and Sustainability Report" (BRSR), which is
intended towards having quantitative and standardised disclosures on ESG parameters to
enable comparability across companies, sectors and time which will be helpful for
investors to make better investment decision for the listed companies which is being
mandatory for the top 1000 listed companies as per market capitalisation. Hence for the FY
2022-23, your Company has adopted the BRSR mechanism as part of its business and the said
BRSR forms part of this Annual Report.
POLICIES OF THE COMPANY
The Board of Directors of your Company have framed various statutory
policies, codes as prescribed under the Act and the SEBI Regulations, from time to time.
The Board/ Committee continuously reviews and updates the policies and codes in line with
the amendments to the Act and the SEBI Regulations. Some of the key policies adopted by
your Company are as follows:
1) Code of Conduct for Board Members and Senior Management Personnel
2) Code of Practices and Procedures for Fair Disclosure of Unpublished
Price Sensitive Information and Policy for identifying legitimate purpose
3) Corporate Social Responsibility Policy
4) Dividend Distribution Policy
5) Nomination, Evaluation & Remuneration Policy
6) Policy for Determination of Materiality for Disclosure of Events or
Information
7) Policy on Determining Material Subsidiaries
8) Policy on Preservation and Archival of Documents
9) Policy on Materiality of Related Party Transactions & on dealing
with Related Party Transactions
10) Whistle Blower Policy 11) Risk Management Policy 12) Sustainability
Policy
| 13) Policy on Cyber Security Data Privacy |
| 14) Equal Opportunity Policy |
| 15) Policy on Business Responsibility and Sustainability Reporting |
| 16) Policy on Grievance Redressal |
| 17) Policy on Preferential Procurement |
| 18) Policy on Human Rights |
| The aforesaid policies can be viewed in your Company's website under
"Polices/Codes" section in the link namely https://www.wabag.com/compliances/ |
The Code of conduct for Prevention of Insider Trading, Prevention of
Sexual Harassment (POSH) policy and other policies etc., are available on the
Company's intranet portal.
DIRECTORS & KEY MANAGERIAL PERSONNEL
Your Company, being a professionally managed Company, is functioning
under the overall supervision and guidance of the Board consisting of six (6) Directors
consisting of three (3) Independent Directors including an Independent Woman Director, one
(1) Non Executive Non - Independent Director and two (2) Executive Directors. The changes
to the position of Directors and Key Managerial Personnel during the period from April 01,
2022 till the date of this report are as follows:
1) Mr. Pankaj Sachdeva ceased as the CEO India Cluster (Key Managerial
Personnel) of the Company w.e.f September 30, 2022; on account of attaining
superannuation. He further continued to remain in the services of the Company till March
31, 2023 enabling smooth and efficient leadership transfer.
2) Mr. Shailesh Kumar was appointed as Key Managerial Personnel w.e.f.
May 27, 2022 and subsequently as CEO-India Cluster (KMP) w.e.f. October 01, 2022.
(5) years w.e.f. August
3) Mr. R. Swaminathan resigned as the Company Secretary and Compliance
Officer (Key Managerial Personnel) of the Company w.e.f. October 07, 2022;
4) Mr. Anup Kumar Samal was appointed as the Company Secretary &
Compliance Officer (Key Managerial Personnel) of the Company w.e.f. December 07, 2022;
5) Mr. Rajiv Mittal, was re-designated as the Chairman & Managing
Director (Key Managerial Personnel) of the Company, w.e.f. December 07, 2022;
6) Mr. Pankaj Malhan was appointed as the Deputy Managing Director and
Group Chief Executive Officer (Key Managerial Personnel) of the Company, w.e.f. December
07, 2022;
RETIREMENT BY ROTATION AND SUBSEQUENT RE-APPOINTMENT
In accordance with the provisions of the Act read with the Rules made
thereunder, SEBI LODR and the Articles of Association of the Company, the Independent
Directors and the Managing Director of the Company are not liable to retire by rotation.
In order to comply with the provisions of Section 152 of the Act read
with rules issued thereunder, Mr. Amit Goela, (DIN: 01754804) Non-Independent
Non-Executive Director, who was appointed by the Members of the Company at the 26th
AGM held on August 25, 2021 for a period of three (3) years, has to be considered to
retire by rotation at the ensuing 28th Annual General Meeting (AGM) and he being eligible,
offers himself for re-appointment. A brief profile of Mr. Amit Goela is given in the
notice convening the 28th AGM of the Company. The Board of Directors of your Company
recommends his re-appointment.
INDEPENDENT DIRECTORS
The Members of the Company at the 25th AGM held on September 23, 2020,
had approved the appointment of Mrs. Vijaya Sampath (DIN: 00641110), as an Independent
Director (Woman Independent Director) of the Company to hold office for a period of three
(3) consecutive years from July 31, 2020 upto July 31, 2023. The Board of Directors of
your Company at their meeting held on May 19, 2023, based on the recommendation of the
Nomination and Remuneration Committee and subject to the approval of the Members at the
ensuing Annual General Meeting, considered and approved the reappointment of Mrs. Vijaya
Sampath (DIN: 00641110), as an Independent Director (Woman Independent Director) of the
Company for a second term of five 01, 2023 to July 31, 2028 who shall not be liable to
retire by rotation.
The Members of the Company at the 26th AGM held on August 25, 2021, had
approved the appointment of Mr. Ranjit Singh (DIN: 01651357), as an Independent
Director of the Company to hold office for a period of three (3) consecutive years from
November 11, 2020 upto November 11, 2023. The Board of Directors of your Company at their
meeting held on May 19, 2023, based on the recommendation of the Nomination and
Remuneration Committee and subject to the approval of the Members at the ensuing Annual
General Meeting, considered and approved the re-appointment of Mr. Ranjit Singh
(DIN: 01651357), as an Independent Director of the Company for a second term of five (5)
years w.e.f. November 12, 2023 upto November 11, 2028 who shall not be liable to retire by
rotation.
DECLARATION OF INDEPENDENCE BY INDEPENDENT DIRECTORS
All Independent Directors of your Company have confirmed
self-assessment test conducted by the that they meet the "Independence criteria"
laid down under the Section 149(6) of the Act and Regulation 16(1)(b) of SEBI LODR. In
addition, they continue to maintain their directorship within the prescribed maximum
limits as prescribed under SEBI LODR. Your Company has received necessary declarations
from the Independent Directors in this regard.
REAPPOINTMENT OF THE INDEPENDENT DIRECTORS
Your Board seeks approval from the Members for the said re-appointments
of Mrs. Vijaya Sampath and Mr. Ranjit Singh. Your Company has received requisite notice in
writing from the Members proposing their candidature. The brief profile of said Directors
proposed to be re-appointed along with other requisite information have been outlined in
the Notice convening the 28th AGM of the Company.
EXECUTIVE DIRECTORS
The Members of the Company at the 23rd AGM held on August 10, 2018, had
approved the re-appointment of Mr. S. Varadarajan (DIN: 02353065), as the Whole Time
Director of theCompanytoholdoffice five(5) years foraperiodof w.e.f. June 01, 2018 who is
also the Chief Growth Officer (CGO) and one of the Promoter of the Company. The Board of
Directors of your Company at their meeting held on May 19, 2023, based on the
recommendation of the Nomination and Remuneration Committee and subject to the approval of
the Members at the ensuing Annual General Meeting, considered and approved the
re-appointment of Mr. S. Varadarajan (DIN: 02353065), as the Whole Time Director &
Chief Growth Officer of the Company for a further period of five (5) years w.e.f. June 01,
2023 to May 31, 2028.
Further, the Board of Directors had approved the re-designation
of Mr. Rajiv Mittal as the Chairman & Managing Director (Key Managerial Personnel) of
the Company, w.e.f. December 07, 2022 subsequent to the appointment of Mr. Pankaj Malhan
as the Deputy Managing Director and Group Chief Executive Officer (Key Managerial
Personnel) of the Company, w.e.f. December 07, 2022, based on the recommendations of the
Nomination and Remuneration Committee.
FINANCIAL STATEMENTS
BOARD'S OPINION ON INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING
THE PROFICIENCY) OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR
During the FY 2022-23, there were no new Independent Directors
appointed to the Board. With regard to proficiency of the Independent Directors,
ascertained from the online IICAproficiency (Indian Institute of Corporate Affairs), as
notified under Section 150(1) of the Act, the Board of Directors have taken on record the
declarations submitted by the Independent Directors that they have complied with the
requirements.
KEY MANAGERIAL PERSONNEL (KMP)
The Key Managerial Personnel (KMP) of your Company as on March 31, 2023
as per Section 203 of the Act, are as follows:
| a) Mr. Rajiv Mittal, Chairman and Managing Director; |
| b) Mr. S. Varadarajan, Wholetime Director and CGO; |
| c) Mr. Pankaj Malhan, Deputy Managing Director and Group Chief Executive
Officer; |
| d) Mr. Skandaprasad Seetharaman, Chief Financial Officer; |
| e) Mr. Shailesh Kumar, CEO - India Cluster; |
| f) Mr. V. Arulmozhi, CFO India Cluster; |
| g) Mr. Anup Kumar Samal, Company Secretary and Compliance Officer. |
BOARD DIVERSITY
Your Company recognises the importance of a diverse Board for its
success and believes that a diverse Board will ensure effective corporate governance,
responsible decision-making ability, sustainable business development and Company's
reputation.
The Company recognises and sets out the approach to have diversity on
the Board in terms of thought, knowledge, skills, regional and industry experience,
cultural and geographical background, perspective, gender, age, ethnicity and race in the
Board, based on the laws / regulations applicable to the Company and as appropriate to the
requirements of the businesses of the Company. The Nomination and Remuneration Committee
sets out the approach to diversity of the Board.
ANNUAL EVALUATION OF BOARD AND PERFORMANCE OF ITS COMMITTEES AND
INDIVIDUAL DIRECTORS
The Nomination and Remuneration Committee and the Board of Directors of
your Company has, in accordance with the provisions of the Act and SEBI LODR, laid down
the manner in which formal annual evaluation of the performance of the Board, Committees,
Individual Directors and the Chairman to be made.
During the year under review, the Board carried out an annual
evaluation of its own performance, its Committees and performance of all the Directors
individually and also the Chairman. The digital evaluation was carried out based on the
responses sought from the Directors by way of an organised questionnaire covering various
aspects of the functions of the Board's adequacy, culture, execution and delivery of
performance of specific duties, obligations and Governance.
The Nomination and Remuneration Committee of the Board carried out a
separate exercise to evaluate the performance of Individual Directors. The Independent
Directors and other Directors of the Company carried out the performance evaluation of the
Board and its Committees, Individual Director and Chairman at their Meeting held during FY
2022-23. The report on Corporate Governance forming part of this Annual Report covers
details of the evaluation process and other requisite information.
FAMILIARISATION PROGRAMME
As part of Familiarisation Programme, your Company conducts various
programms, sessions and seminars for the Directors, from time to time, to update them with
various aspects covering the industry including the business process, procedures, laws,
rules and regulations as applicable for the business of the Company, making presentations
on the business areas of the Company including business strategy, risk opportunities,
quarterly performance of the Company, etc.
A formal letter of appointment was issued to the Directors at the time
of their appointment, capturing their roles, functions, duties and responsibilities and
expectations of the Board.
The Directors of your Company are given the full opportunity to
interact with Senior Management Personnel and provided with the access to all the
documents/ information sought by them to have a good understanding of the Company, its
business and various operations and the industry of which it is a part.
The details of the Familiarisation Programme are explained in the
Report on Corporate Governance and are available on the Company's website at link
https://www.wabag.com/ compliances/.
APPOINTMENT OF DIRECTORS
Pursuant to Section 134(3)(e) and 178(3) of the Act, the Nomination,
Evaluation & Remuneration Policy lays down the criteria for determining
qualifications, positive attributes and independence of a Director. The Nomination and
Remuneration Committee has formulated the criteria for appointment of Director on the
Board of the Company. In accordance with the provisions of the Act and SEBI LODR, the
Nomination and Remuneration Committee based on the criteria formulated makes necessary
recommendation to the Board for the appointment of the Directors.
In addition, the Nomination and Remuneration Committee on the basis of
the performance evaluation of the Directors, recommends to the Board on reappointment /
continuation of the term of office of the Independent Directors and other Directors from
time to time.
BOARD & COMMITTEES
The Board of Directors of your Company comprises of the following
Directors as on the financial year ended March 31, 2023:
| 1) Mr. Rajiv Mittal, Chairman and Managing Director; |
| 2) Mr. S. Varadarajan, Whole Time Director & Chief Growth Officer
(CGO); |
| 3) Mrs. Vijaya Sampath, Independent Director; |
| 4) Mr. Milin Mehta, Independent Director; |
| 5) Mr. Ranjit Singh, Independent Director; |
| 6) Mr. Amit Goela, Non - Executive Non - Independent Director. |
Your Company maintains the highest standards of Corporate Governance
practices and is in compliance with the requirements of the relevant provisions of
applicable laws and statutes.
As on March 31, 2023, the Board of your Company has following key
Committees viz:
a) Audit Committee which acts as an interface between the
statutory and the internal auditors, the Management and the Board of Directors. It assists
the Board in fulfilling its responsibilities of monitoring financial reporting processes,
reviewing the Company's established systems and processes for internal financial
governancefinalised by the Board before the beginning of the year to and reviews the
Company's statutory and internal audit processes. The Board reviews/ accepts the
recommendations made by the Committee.
The Audit Committee of the Board comprises three (3) Independent
Directors and one (1) Executive Director viz., Mr. Milin Mehta, Chairman of the Committee,
Mr. Ranjit Singh, Mrs. Vijaya Sampath and Mr. Rajiv Mittal, Members of the Committee.
b) Stakeholders Relationship Committee inter - alia to look into
various matters relating to the security holders of the Company.
c) Nomination and Remuneration Committee inter - alia with wider
terms of reference as per the statutory requirements.
d) Risk Management and Monitoring Committee inter - alia to
review and monitor the various projects of the Company from time to time and evaluate the
risks existing in the business and ensure appropriate mitigation measures in a time bound
manner.
e) Corporate Social Responsibility Committee, inter - alia, to
undertake CSR activities, monitoring and reporting system for utilisation of funds for the
CSR activities.
f) Capital Allocation Committee (formerly Overseas Investment
Committee) inter - alia, to scrutinise, evaluate and approve any new/enhancement in
the investment by the Company in setting up a branch/ subsidiary/ joint venture entity, in
India or overseas and periodically monitor that the investments made in such group
entities are used for such approved purpose so as to ensure that return on investment to
the Company is protected in the long run. Please refer Financial Statements of the Annual
Report for investment made by Company in Overseas Direct Investment (ODI) entities.
The respective Chairperson of each Committee convenes the meetings of
the Committees. The Board is apprised with the discussion held at the meeting of the
Committees, from time to time, for review/ necessary action, wherever required. In
compliance with the Secretarial Standards -1 issued by the Institute of Company
Secretaries of India (ICSI), the minutes of the meetings of the Committees are sent to all
the Members of the Committees for their comments, if any. The approved minutes are signed
and certified minutes are shared with the Board and respective Committees and tabled at
the subsequent meeting of the Board of Directors/Committees. controls,
The annual calendar of the Board and Committee Meetings are enable the
Directors to plan their schedule well in advance to ensure their participation in the
meetings.
During the FY 2022-23, the Board of Directors of your Company met seven
(7) times through physical and video conferencing/other audio visual means on May 27,
2022, August 10, 2022, November 11, 2022, November 25, 2022, December 07, 2022, February
10, 2023 and March 17, 2023.
The details regarding composition of the Board, attendance of the
Directors and other relevant information are set out in the Report on Corporate Governance
forming part of this Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with Section 134(5) of the Act, the Board of Directors to
the best of its knowledge and belief and according to the information and explanations
obtained, your Directors make the following statements: a) that in the preparation of the
annual accounts of the Company, the applicable accounting standards have been followed
along with proper explanation relating to material departures; b) the Directors had
selected such accounting policies and applied them consistently and made judgments and
estimates 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 profits of the
Company for that period; c) the Directors had taken proper and sufficient care towards the
maintenance of adequate accounting records in accordance with the provisions of this Act
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; d) the Directors had prepared the annual accounts on a going concern
basis; e) the Directors had laid down internal financial controls to be followed by the
Company and such internal financial controls are adequate and were operating effectively;
and f) the Directors had devised proper systems to ensure compliance with the provisions
of all applicable laws and such systems are adequate and operating effectively.
REMUNERATION POLICY
The Board of Directors of your Company had implemented
Remuneration policy based on various evaluation criteria determined by the Nomination and
Remuneration Committee in line with the requirements of the applicable law. The objective
of the Remuneration policy is to assess the effectiveness of the Board as a whole,
Committees of the Board and Individual Directors on regular basis and to attract, motivate
and retain the Directors, Key Managerial Personnel,
Senior Management Personnel and other expert Individuals that the
Company requires in order to achieve its strategic and operational objectives.
In accordance with the relevant provisions of the Act and SEBI LODR,
the following policies/ framework have been adopted by the Board upon recommendation of
the Nomination and Remuneration Committee as part of Nomination, Evaluation &
Remuneration Policy:
* Board Nomination Policy;
* Policy for appointment and removal of Director, Key Managerial
Personnel and Senior Management Personnel;
* Board Evaluation Policy;
* Board Diversity Policy;
* Policy related to Remuneration for the Executive
Directors, Key Managerial Personnel and Senior Management Personnel;
* Policy related to Remuneration for the Non - Executive Directors /
Independent Directors.
The Nomination, Evaluation & Remuneration policy of the
Company is available on the website of the Company www. wabag.com. The
information on Director's Commission and other matters as provided in Section 178(3)
of the Act are disclosed in the Report on Corporate Governance forming part of this Annual
Report. The overall limit of remuneration payable to the Board of Directors and Managerial
Personnel are governed by the provisions of Section 197 of the Act and rules made
thereunder. either in physical form or electronic form.
REMUNERATION OF EXECUTIVE DIRECTORS
The remuneration of the Executive Directors consists of fixed component
and variable performance based on specific KPIs (Key Performance Index) and KRA (Key
Results Area) agreed with the Executive Directors. The Nomination and Remuneration
Committee makes annual appraisal of the performance of the Executive Directors based on a
detailed performance evaluation and recommends the compensation payable to them, within
the parameters approved by the Members, to the Board for their approval.
REMUNERATION OF NON-EXECUTIVE DIRECTORS
The Non-Executive Directors are paid remuneration in the form of
commission subject to overall ceiling limits prescribed under the Act and the Members
approval. The Board can determine different remuneration for different Directors on the
basis of their role, responsibilities, duties, time involvement etc. The Company has no
pecuniary relationship with Non-Executive Directors except for the commission paid to
them.
KMP/ SENIOR MANAGEMENT/ OTHER EMPLOYEES
The remuneration of Key Managerial Personnel (other than Executive
Directors) and any revision thereof, shall be approved by the Board in accordance with the
Nomination, Evaluation and Remuneration Policy of the Company and internal policy of the
Company which consists of fixed and variable pay includes salary, benefits, perquisites,
provident fund etc. The Chairman & Managing Director and Whole Time Director & CGO
carry out the overall performance evaluation of senior management/ other employees and
apprises the Board/Nomination and Remuneration Committee about the same and on the basis
of the overall achievements of KPI (Key Performance Index) and KRA (Key Results Area) they
will be paid remuneration/ any revision thereof.
POLICY ON PRESERVATION & ARCHIVAL OF DOCUMENTS
In accordance with Regulation 9 read with Regulation 30(8) of the SEBI
LODR, your Company has framed a Policy on "Preservation & Archival of the
Documents". This policy is available on the Company's website www.wabag.com. The
policy provides guidelines for the retention of records, duration of preservation of
relevant documents, archival/ safe disposal/ destruction of the documents. The policy
inter - alia aids the employees in handling the documents efficiently policy not only
covers the various aspects on preservation, but also archival of documents.
EMPLOYEES STOCK OPTION SCHEME (ESOP)
Your Company does not have any existing ESOP scheme as on date of this
report.
PARTICULARS OF EMPLOYEES
Pursuant to Section 197(12) of the Act read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended
from time to time, disclosures with respect to the remuneration of Directors, KMP and
employees, are enclosed as Annexure I to the Board's Report.
The information required under Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including amendments
thereof), is provided in the Annexure forming part of this Report. In terms of the first
proviso to Section 136 of the Companies Act, 2013, the Report and Accounts are being sent
to the members excluding the aforesaid Annexure. Any member interested in obtaining the
same may write to the Company Secretary at the Registered Office of the Company.
INDUSTRIAL RELATIONS
Your Company maintained healthy, cordial and harmonious industrial
relations at all levels with the Stakeholders. The enthusiasm and unstinted efforts of our
employees have enabled your Company to remain at the leadership position in the industry.
It has taken various steps to improve productivity across the organisation.
POLICY ON PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
Your Company has a Policy on Prevention of Sexual Harassment in place
in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 ("POSH"). Your Company maintains a
collaborative, inclusive, non-discriminative and safe work culture, and provides equal
opportunities to all employees. Your Company has a ‘Zero Tolerance' policy
towards sexual harassment at the workplace.
Your Company has constituted Internal Complaints Committee under POSH,
which comprises six (6) Members, majority being women members including one (1) external
woman representative.
All employees viz. permanent, consultant, contractual, temporary and
trainees are covered under your Company's Policy on Prevention of Sexual Harassment.
During the year under review, your Company had received one (1)
complaint for Sexual Harassment at workplace. An Annual Report comprising details of
complaints received, disposed off and pending at the end of the calendar year i.e.
December 31, 2022 was duly submitted by the Internal Compliant Committee, in accordance
with the Section 21 of POSH.
AUDITORS
A. Statutory Auditors
The Members of the Company at the 23rd AGM held on August 10, 2018 had
appointed M/s Sharp & Tannan, Chartered Accountants, Chennai (Firm Regn No. 003792S)
as the Statutory Auditors of the Company to hold office for a term of five (5) years from
the conclusion of the 23rd AGM until the conclusion of the 28th AGM of the Company to be
held in the calendar year 2023.
The Statutory Auditors of the Company have submitted Independent
Auditors' reports for FY 2022-23 and is forming part of this Annual Report. The
Auditor's Report on Standalone and Consolidated Financial Statements of the Company
for the financial year ended March 31, 2023, does not contain any qualification,
reservation or adverse remark.
The Board of Directors of the Company, as recommended by the Audit
Committee had approved the re-appointment of M/s Sharp & Tannan, Chartered
Accountants, Chennai (Firm Regn No: 003792S) as the Statutory Auditors of the Company for
another term of five (5) years from the conclusion of the 28 th AGM until the conclusion
of the 33rd AGM of the Company to be held in the calendar year 2028.
B. Cost Auditor
Pursuant to the provisions of the Section 148(1) of the Act, Mr. K.
Suryanarayanan, Practicing Cost Accountant (Membership No.24946) was appointed as the Cost
Auditor of the Company, for conducting the audit of cost records for the FY 2022-23. The
audit of cost records is in progress and report by the Cost Auditor will be filed with the
Authority within the prescribed time. A proposal for ratification of remuneration of the
Cost Auditors for the FY 2022-23 will be placed before the Members of the Company at the
ensuing AGM.
The cost records, as applicable to the Company are maintained in
accordance with the Section 148(1) of the Act.
C. Secretarial Auditor
The Board of Directors had appointed M/s M. Damodaran & Associates,
LLP, Practicing Company Secretaries, Chennai as the Secretarial Auditors of the Company
for the FY 2022-23. The Secretarial Audit Report was placed before the Board and it does
not contain any qualification, reservation or adverse remark. The Report of the
Secretarial Auditor is enclosed as Annexure II to the Board's Report.
Your Board has appointed M/s M Damodaran & Associates LLP,
Practicing Company Secretaries, Chennai as the Secretarial Auditor of the Company for FY
2023-24.
D. Internal Auditors
Your Company has a robust Internal Audit function comprising of
Corporate Assurance Department of the Company (internal staff) and M/s PKF Sridhar &
Santhanam LLP, Chartered Accountants (external firm).
The Internal Audit function aims to provide independent and objective
assurance services with a view to add value and improve efficiency of business operations.
M/s PKF Sridhar & Santhanam LLP, Chartered Accountants, Chennai,
(Firm Regn. No - 003990S/ S200018) was appointed as Internal Auditors of the Company to
conduct the Internal Audit for the
FY 2022-23. The Internal Audit function reports directly to the Audit
Committee and makes comprehensive presentations at the Audit Committee meeting(s) on the
Internal Audit Report covering the business areas required by the Audit Committee, from
time to time.
M/s PKF Sridhar & Santhanam LLP, Chartered Accountants along with
the Corporate Assurance Department of the Company conducts the Internal Audit as Internal
Auditors of the Company for the FY 2023-24.
None of the Auditors of the Company have reported any frauds to the
Audit Committee or to the Board of Directors under Section 143(12) of the Act, including
rules made thereunder.
SUBSIDIARIES, JOINT VENTURES & ASSOCIATES
a) During the FY 2022-23, your Company had invested in the
following securities of DK Sewage Project Private Limited, Subsidiary Company:
* INR 3,58,00,000/- consisting of 35,80,000 Equity Shares of face value
of INR 10/- each and allotted on March 28, 2023
* INR 7,42,00,000/- consisting of 74,20,000 Non Convertible Debentures
(Series A NCD) of face value of INR 10/- each and allotted on March 28, 2023
* INR 3,31,00,000/- consisting of 33,10,000 Non Convertible Debentures
(Series A NCD) of face value of INR 10/- each and allotted on March 29, 2023 b) During the
FY 2022-23, your Company had invested in the following securities of Ghaziabad Water
Solutions Private Limited, Subsidiary Company:
* INR 1,70,00,000/- consisting of 17,00,000 Equity Shares of face value
of INR 10/- each and allotted on March 28, 2023
* INR 21,00,00,000/- consisting of 2,10,00,000 Non Convertible
Debentures (Series A NCD) of face value of INR 10/- each and allotted on March 28, 2023
Please refer Key Project Updates of the Board's Report for more
details.
As on the financial year ended March 31, 2023, the Board of Directors
of your Company had considered and approved following decisions with respect to
Subsidiaries, Joint Ventures and Associate entities:
a) Approval for closure of place of business (Branch office) in
Tanzania and accordingly the Registrar of Companies of the Republic of Tanzania had
approved the same vide its order dated April 20, 2023;
b) Approval for strike off of Thoothukudi Renew Waters Private Limited,
India, Associate Company which is under process;
c) Approval for closure of Wabag Limited, Thailand, Subsidiary Company
through the process of voluntary liquidation, which is under process;
d) Approval for sale of "VA Tech Wabag Brno Spol S.R.O, Czech
Republic" and ceased to be a subsidiary on March 10, 2023;
e) Closure of Macau Branch of VA TECH WABAG GmbH (Austria);
f) Approval of the proposal for opening branchofficein Bangladesh for
Pagla project;
g) Registration of Joint Venture agreement in Chennai for Perur
project; and
h) Approval for 100% stake sale of Wabag Wassertechnik AG, Switzerland,
Subsidiary Company.
Your Company has 21* subsidiaries, associates and Joint Venture entity
as on date of this report. Pursuant to Section 129(3) of the Act, a statement containing
the salient features of the Financial Statement of our subsidiaries in the prescribed
format Form AOC-1 is enclosed as Annexure III to the Board's Report.
*During the Financial year:
* VA Tech Wabag Brno Spol S.r.o, Czech Republic has sold its 100% stake
to a Local Partner on March 10, 2023;
* Wabag Limited, Thailand filed dissolution application on March 30,
2023;
* Thoothukudi Renew Waters Private Limited has filed the application on
February 21, 2023 with the Registrar of Companies, Chennai, Ministry of Corporate Affairs,
for striking off of name of the company as per Section 248 of the Act.
MATERIAL SUBSIDIARIES
The Board of Directors of your Company has framed a policy for
"Determining Material Subsidiaries" in accordance with the SEBI LODR. The policy
is also made available on your Company's website www.wabag.com
In accordance with the provisions of the SEBI LODR and Policy for
Determining Material Subsidiaries, your Company has one (1) Material Subsidiary i.e. VA
Tech Wabag GmbH, Austria, as on the date of this report.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company for the Financial
year ended March 31, 2023 are prepared in compliance with the applicable provisions of the
Act including Indian Accounting Standards specified under Section 133 of the Act. The
audited consolidated Financial Statements together with the Auditors' Report thereon
form part of this
Annual Report.
Pursuant to the provisions of Section 136 of the Act, the Financial
Statements of the Subsidiaries, Associates and Joint Venture entities of the Company are
available for inspection by the Members at the Registered Office of the Company. Your
Company shall provide a copy of the Financial Statements of its Subsidiary companies to
the Members upon their request. The statements are also available on the website of your
Company at www.wabag. com under Investors Section.
RELATED PARTY TRANSACTIONS
All transactions entered into with Related Parties by the Company,
during the year under review, were in the ordinary course of business and at arm's
length basis and in accordance with the provisions of the Act and the SEBI LODR.
PartyThere were no materially significant Transactions entered into by
the Company with the Promoters, the Directors, the Key Managerial Personnel or other
designated persons which may have a potential conflict with the interest of the Company at
large. The details of the same are given in the notes to the Financial Statements.
The Related Party Transactions were placed before the Audit its
liquidation and Committee for their review, consideration and approval/ recommendation and
then placed before the Board for suitable noting/approval. Amended Policy on Materiality
of Related Party Transactions and on dealing with Related Party Transactions is available
on the Company's website www.wabag.com.
The details as required to be provided under Section 134(3) (h) of the
Act, in the prescribed Form AOC-2 are enclosed as Annexure V to the Board's
report.
OVERSEAS DIRECT INVESTMENT
Your Company, over the years has expanded its global reach through
Overseas Direct Investments (ODI), either through Subsidiaries, Associates and Joint
Venture Entities. In addition, your Company also executes projects in overseas geographies
through establishment of a branch or other permanent establishment (PE) models. As on
March 31, 2023, the aggregate equity investments in such ODI entities amounted to INR
60.54 Crore as against INR 25.30 Crore as on March 31, 2022. The increase in investment
was primarily on account equity infusion in to M/s. Wabag Muhibbah JV Sdn. Bhd, Malaysia,
the Special Purpose Vehicle (SPV) for execution of RAPID Petronas Malaysia project.
The equity infusion was necessitated to fund the closing costs of the
project. The RAPID Petronas Malaysia project is one of the largest orders in history of
the Company to build a Effluent Treatment Plant for PETRONAS' Refinery and
Petrochemicals Integrated Development (RAPID) Project in Pengerang, Johor. All other ODI
entities operated their businesses from internal accruals and did not require any
incremental fund infusions. As on March 31, 2023, the aggregate guarantees in such ODI
entities amounted to INR 36.49 Crore as against INR 60.35 Crore as on March 31, 2022, with
the reduction primarily driven by completion of warranty obligations in the ODI entities.
Your Company has not provided any loan to its ODI entities during the
year. Your Company's international presence has benefited in both monetary and
non-monetary aspects. During the FY 2022-23, overseas entities and projects contributed to
~47% of the consolidated revenues. Our International projects allows us to deploy advanced
technology, enables contributing to the foreign exchange proceeds in to India, better
working capital cycles and lower finance costs on account of PCFCs. The Group's
international presence has enabled advanced Research & Development activities in India
and Europe leading to over 125 IP Rights which are proprietary in nature and used for the
group's business operations to provide best in class customized and innovative
technological solutions to our customers at competitive cost.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company's CSR Committee comprises, Mrs. Vijaya Sampath
(Chairperson) (DIN: 00641110), Mr. Amit Goela (DIN: 01754804), Mr. Rajiv Mittal (DIN:
01299110) and Mr. S. Varadarajan (DIN:02353065) as the Members. The Committee is
responsible for formulating and monitoring the CSR policy of the Company.
Pursuant to Section 135(4) of the Act, the major contents of CSR policy
include your Company's CSR approach and guiding principles, core Ideology, total
outlay for each Financial year, allocation of resources and thrust areas, formulation of
annual action plan, Executing Agency/ Partners and Impact Assessment.
This policy is available on the Company's website in the following
link: https://www.wabag.com/compliances/. In terms of Section 135 of the Act read with CSR
Rules and in accordance with CSR Policy and in accordance with the Annual Action Plan,
your Company allocated a limit equivalent to 2% of the average net profits of its three
(3) immediately preceding Financial years for implementation of CSR activities. During the
year under review, your Company spent a sum of INR 114.82 Lakhs towards CSR projects
implementation.
Pursuant to the provisions of Section 135(6) of the Companies Act,
2013, there was no unspent amount for the FY 2022 23 pertaining to ongoing projects which
has to be transferred to a separate bank on or by April 30, 2023.
Further, during the year, your Company implemented the following CSR
projects :
i. Livelihood Support Programme at Kolkata - On going Project;
ii. Chennai City Sanitation Plan - On going Project;
iii. Project under Industry Partnership Model (CSR Project under
Apprenticeship Act) - Other than On-going Project;
During the FY 2022-23, the Company has spent an amount of INR 114.82
Lakhs towards the above mentioned projects.
The details of the aforesaid projects are covered in the annual report
on our CSR activities forming part of this Board's Report.
The CSR Committee of the Board has been constantly reviewing the
projects and gives directions to expedite implementation of the projects undertaken. It
also focusses on proposals covering skill development CSR initiatives in the form of
training and development programmes to enrich the knowledge, skill sets, communication, on
the job training, improve efficiency and performance level of technical and non-technical
persons viz., diploma holders, graduates and other eligible persons.
Core Ideology: For WABAG, responsible business practices include
being responsible for our business processes, engaging in responsible relationship with
the employees, customers and the community. Hence for the Company, Corporate Social
Responsibility goes beyond just adhering to statutory and legal compliances, and creates
social and environmental value while supporting the Company's business objectives and
reducing operating costs and at the same time enhancing relationships with the key the
Stakeholders and Customers.
Your Company's commitment to CSR will be manifested by investing
resources in one or more of the following areas:
a) Eradicating hunger, poverty and malnutrition, promoting preventive
health care and sanitation and making available safe drinking water for the community;
b) Promoting education, including special education and employment
enhancing vocation skills especially among children, women, elderly and the
differently-abled and livelihood enhancement projects;
c) Promoting gender equality, empowering women, setting up homes and
hostels for women and orphans, setting up old age homes, day care centers and such other
facilities for senior citizens and measures for reducing inequalities faced by socially
and economically backward groups;
d) Ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal Welfare, agro-forestry, conservation of natural
resources and maintaining quality of soil, air and Water;
e) Protection of national heritage, art and culture including
restoration of buildings and sites of historical importance and works of art;
f) Contribution to any fund set up by the Central
Government for socio-economic development, disaster relief and for any
other purpose for which these funds are allocated and utilised;
g) Contribution of funds provided to technology incubators located
within academic institutions which are approved by the Central Government for CSR
purposes;
h) Rural Development Projects;
i) Setting up facilities related to pandemic illnesses like COVID-19,
health infrastructure for COVID care, establishment of medical oxygen generation and
storage plants, ‘manufacturing and supply of Oxygen concentrators, ventilators,
cylinders and other medical equipment for countering pandemics'.
j) Any other projects and/or contribution for any specific purpose
notified CSR and/or recommended/approved by CSR Committee/Board of the Company from time
to time.
The annual report on our CSR activities is enclosed as
Annexure IV to the Board's Report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
Pursuant to the provisions of Section 186 of the Act and Schedule V of
the SEBI LODR the details of loans, guarantees and investments, as on March 31, 2023, are
given in the notes to the Financial Statements of the Company.
INTERNAL CONTROL / AUDIT & ITS ADEQUACY
Your Company has built robust control system upon which the internal
controls are built to mitigate the risks. Under the controlled environment; Company's
policies, procedures and standards are developed to uphold control across the
organisation. Adequate internal controls are in place to commensurate with business and
operating dynamics, Internal controls are designed to provide reasonable assurance over:
| 1. Achieving strategic objectives; |
| 2. Efficiency and effectiveness of business operations; |
| 3. Prevention and detection of frauds and errors; |
| 4. Safeguarding its assets; |
| 5. Complying with applicable laws and regulations; |
| 6. Providing reliable financial information. |
Your Company has a robust internal audit function, spearheaded by
industry veterans and process experts. The
Audit Committee of the Board periodically reviews the audit functions
and key issues are acted upon immediately. The
Key controls are periodically reviewed and improvements are made to
enhance the reliability of information. The Company through its global ERP continues to
align its processes and controls with industry best practices.
INTERNAL CONTROL OVER FINANCIAL REPORTING
The Act, re-emphasises the need for an effective Internal Financial
Control system in the Company which should be adequate and shall operate effectively. The
details are as under:
1. The internal financial controls within the Company commensurate with
the size, scale and complexity of its operations;
2. Audit Committee of the Board periodically reviews the internal audit
plans and provides observations/ recommendations to the Internal and Statutory Auditors;
3. The controls were tested during the year and no reportable material
weaknesses;
4. Your Company continuously tries to automate these controls to
increase its reliability;
5. Your Company follows accounting policies which are in line with the
Indian Accounting Standards (Ind
AS) notified under Section 133 of the Act read with Companies (Indian
Accounting Standard) Rules, 2015. These are in accordance with Generally Accepted
Accounting Principles (GAAP) in India;
6. Your Company's Books of Accounts are maintained in IFS
(Industrial and Financial Systems), a global
Enterprise Solution and transactions are executed through IFS setups to
ensure correctness/ effectiveness of all transactions, integrity and reliability of
reporting;
7. Your Company has a mechanism of building budgets at an integrated
cross - functional level. The budgets are reviewed on a monthly basis so as to analyse the
performance and take corrective action, wherever required;
8. Overseas subsidiaries provide required information of consolidation
of accounts in the format prescribed by your Company along with certification from
respective entity auditors.
RISK MANAGEMENT
Your Board has constituted a dedicated Board Committee viz. "Risk
Management and Monitoring Committee" to review risks trends, exposure, its potential
impact analysis and mitigation plans. The Committee consists of 4 (four) Directors out of
which 2 (two) are Independent Directors and 2 (two) are Executive Directors. The details
on your Company's risk
Management framework/ strategy, risk assessment, risk acceptance, risk
avoidance, risk mitigation, risk review etc. forms part of Management Discussion and
Analysis section of this Annual Report.
AWARDS & RECOGNITIONS
During the year under review, your Company received numerous awards and
accolades conferred by reputable organisations, distinguished bodies and clients for
achievements in CSR, sustainable solutions, project completion etc.
Please refer this Annual Report for the details of the rewards and
recognition achieved by the Company globally during the FY 2022-23.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE and
material orders passed by the Therearenosignificant regulators or courts or tribunals
impacting the going concern status and Company's operations in future.
INSOLVENCY AND BANKRUPTCY CODE, 2016
There is no Corporate Insolvency Resolution Process initiated under the
Insolvency and Bankruptcy Code, 2016 (IBC).
OTHER DISCLOSURES
Deposits: Your Company has not accepted any deposit within the
meaning of Sections 73 and 74 of the Act, read with the Companies (Acceptance of Deposits)
Rules, 2014 or re-enactment(s) (includinganystatutory modification(s) thereof for the time
being in force), during the year under review.
Contracts or Arrangements with the Related Parties:
Particulars of contracts or arrangements with the related parties
referred to in Section 188(1) of the Act, in the prescribed Form AOC-2 is enclosed as Annexure
V to the Board's Report.
Annual Return: In accordance with Section 134(3)(a) read with
Section 92(3) of the Act, a copy of the annual return in the prescribed format is
available on the Company's website in the following link:
https://www.wabag.com/compliances.
Secretarial Standards: The Company has complied with applicable
Secretarial Standards issued by the ICSI.
Conservation of Energy: The information on conservation of energy,
technology absorption and foreign exchange earnings and outgo as stipulated under Section
134 of the Act, read with the Companies (Accounts) Rules, 2014, is enclosed as Annexure
VI to the Board's Report.
Differential rights: The Company has not issued equity shares with
differential rights as to dividend, voting or otherwise.
Nature of Business: During the year under review, there was no
change in nature of business of the Company or any of its subsidiaries.
QUALITY, HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION (QHSE)
Your Company is committed to providing a safe, healthy and conducive
environment to all of its employees and associates and complied with labour related laws.
The details of quality, health, safety, environment initiatives, objectives and
achievements made by the Company are detailed in the Management Discussion and Analysis
section of this Annual Report.
SUSTAINABILITY INITIATIVES
Sustainability is a key mantra for your Company. Globally, your Company
is actively involved in providing sustainable solutions for the future that are
eco-friendly and renewable in nature. Your Company's contribution towards
sustainability is constantly driving in nature as is reflected throughout this report and
forms an integral part of our business.
WHISTLE BLOWER POLICY / VIGIL MECHANISM
Pursuant to the Act and SEBI LODR, your Company has formulated a
Whistle Blower Policy which serves as a mechanism for its Directors, Employees, Business
Associates and other Stakeholders to report genuine concerns about unethical behavior,
actual or suspected fraud or violation of the Code of Conduct without fear of reprisal.
The vigil mechanism consists of a dedicated email-id. Any Director or employee who becomes
aware of an unethical behavior or fraud or violation of code shall report to the Ethics
Committee for redressal as provided in the policy.
The Audit Committee of the Board oversees the functioning of this
policy. The policy is available on the website of the Company www.wabag.com .
GREEN INITIATIVES
WABAG stands for sustainability and has showcased its commitment
to creating a green earth for over nine (9) decades.
WABAG's vision is aligned to the United Nations Sustainable
development goals (SDGs) 2030 and this has been reflected in the Group's numerous
initiatives as highlighted below:
1. Green Initiatives begin at home: Over 97% of the total
power requirement of our headquarters in Chennai is derived from wind energy, thereby
bringing down energy cost by 10% as well as becoming a part of green energy compliant
corporate. It is in recognition of this initiative that our headquarters, WABAG HOUSE, has
been re-certified as a platinum rated green building by Indian Green Building Council
(IGBC). Other initiatives taken by your Company are as follows:
* Paper Waste is being sent to ITC Limited for recycling and the
proceeds obtained in the form of stationeries are distributed to local panchayat schools.
* Batteries, oil waste and e-Waste being disposed for recycling through
Pollution Control Board (PCB) authorised re-cycler;
* Employee friendly initiatives like ergonomics, indoor air quality and
LUMO level are maintained as per standards;
* Conservation on energy and water management has resulted in low
Energy and Water Performance Index;
* Introduction of e-Tender process for sourcing materials in our
procurement function as a step towards digitisation.
2. Digitisation: Moving forward on its commitment towards a
Green Planet for future generations and in furtherance of digitisation commitment to
Go-Green initiative of the Government, the Company has been using digital mechanism to
conduct Board/ Committee Meeting(s) as per the provisions of law and the agendas, notes
and other supporting documents of the Board / Committee meetings are circulated through a
secured electronic platform for ease of access to the Directors/Members for their review
and consideration, thereby reducing usage of papers to a limited purpose.
Your Company took various initiatives to reduce the usage of physical
Annual Reports by continuously persuading the Members to get registered their e-mail ids
with their respective DPs to avail the e-version of Annual Reports and providing e-voting
facility to all its Members to enable them to cast their votes electronically on all
resolutions set forth in the Notice including attending AGM electronically.
3. Breathing life into lifelines: Clean water and
rejuvenated rivers are key to enhancing the Green cover on Planet Earth. WABAG has been
playing an integral role to ensuring this by collaborating with Governments worldwide. In
India particularly, WABAG has emerged as one of the foremost partners of the Government in
rejuvenating India's lifeline, Holy River Ganga under the world's largest river
cleaning programme Namami Gange.
4. Contributing to a Circular Economy: In an era where
sustainable development has become imperative, the concept of a circular economy has
gained significant traction, VA TECH WABAG, has emerged as a frontrunner in promoting the
principles of the circular economy. Through pioneering and innovative solutions WABAG has
made remarkable contributions towards achieving a more circular and sustainable future.
Equipped with innovative technologies, today WABAG-built STPs are
serving as centres for resource recovery, extracting valuable resources from wastewater
such as treated wastewater for non-potable purposes, renewable energy from biogas, and
nutrient-rich fertilizer. Thus, WABAG enables STPs to play an important role in the
circular economy, transforming wastewater treatment into a sustainable and
resource-efficient process.
Setting the precedent for Circular Economy more than 15 years ago,
WABAG built and operated the Kodungaiyur Power-Neutral WWTP in Chennai, which holds the
record of being the 1st WWTP in India to complete 110,000 hours on a single gas engine.
The plant utilizes the Biogas generated from sludge digestion to
generate Green Energy which is in-turn used to power the plant, thus rendering it Power-
Neutral and independent of Grid Power. Similarly, our Dinapur WWTP in Varanasi, is the 1st
and largest WWTP under the prestigious Namami Gange Programme, which was dedicated to the
nation by Hon'ble PM Shri Narendra Modi. The plant, based on the Resource Recovery
based Circular Economy model, is a power neutral WWTP, treating wastewater to restore the
Aviralta & Nirmalta of river Ganga. A few other milestone plants build by WABAG on
this concept are the K&C Valley WWTP at Bangalore, Karnataka, Pappankalan STP at New
Delhi, Madinat Salman STP at Bahrain and the MARAFIQ WWTP at Jubail, Saudi Arabia.
WABAG believes ‘Water is too precious to be used just once'.
Through its infrastructure for Recycle/Reuse, WABAG ensures that the used water is treated
to the desired parameters and is put back into the water grid, thereby ensuring constant
availability of water, simultaneously safeguarding our precious freshwater sources.
Through its technologically advanced infrastructure equipped to treat and reuse the
municipal as well as the industrial wastewater, WABAG is treating 27 million m3 of
wastewater every day and recycling 2.5 million m3 of treated wastewater every day to
reduce the load on freshwater sources and abate the environment pollution. Similarly, the
WABAG built Power Neutral STPs are generating over 40 MWH of green energy every day.
At WABAG, we have many global references, which are great examples of
implementation of cutting-edge technologies for promoting water recycle and reuse. The
world's first Direct Potable Reuse (DPR) plant at Namibia, the industrial effluent
recycle and reuse plant at IOCL - Panipat and the Tertiary Treatment Reverse Osmosis
(TTRO) plant at Chennai are a few time-tested references from WABAG.
WABAG has built the world-class water reuse plant (TTRO) at Koyambedu,
one of the largest and the technologically most advanced plants in India and treats the
secondary treated municipal water up to potable water standards. The treated water is then
supplied to Industrial Hubs in South Chennai via a 68km pipeline, effectively diverting
1600 Crore litres of freshwater annually for Domestic Consumption and assuring Industrial
Water Security at all times. In Windhoek in 2002, WABAG built the world's first
Direct Potable Water Reuse Plant. With an advanced nine-step multi-barrier treatment
system, secondary effluent is treated to high-quality drinking water.
WABAG has successfully completed one of the largest "Central Zero
Liquid Discharge Plant"(CZLD) Plant of Steel Industry for NMDC Steel Ltd. at
Jagdalpur, Chhattisgarh, India. The plant is equipped with state-of-the-art technologies
like High-rate Solid Contact Clarifier (HRSCC), Dual Media Filter (DMF), Activated Carbon
Filter (ACF), UV Disinfection System, Ultrafiltration System, Reverse Osmosis (RO),
Multiple Effect Evaporator(MEE) to achieve zero liquid discharge. The recycled water is
reused in the facility as make-up cooling water, making the production more sustainable
and environmentally friendly.
ACKNOWLEDGEMENTS
Your Board of Directors thanks the Lenders, Banks,
Financial Institutions, Business Associates, Customers, JV Partners,
Government of India & Overseas Countries, State Governments in India, Regulatory &
Statutory Authorities, Investors & Shareholders and other Stakeholders, Societies at
large, Corporations, Municipalities for their valuable support & co-operation. For the
continued contribution, commitment & dedication, your directors thank the employees of
the Company and its Subsidiaries.
|
For and on behalf of the Board of Directors of |
|
|
|
VA TECH WABAG LIMITED |
|
Milin Mehta |
Rajiv Mittal |
| Date: May 19, 2023 |
Director |
Chairman and Managing Director |
| Place: Chennai |
(DIN: 01297508) |
(DIN: 01299110) |
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