Annual Report
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ANNUAL REPORT 2015-16 Forward-looking statement Contents In this Annual Report, we have disclosed forward-looking information to enable investors to 02 comprehend our prospects and take CORPORATE OVERVIEW investment decisions. This report and other statements - written and Corporate Information 01 oral - that we periodically make Corporate Identity 02 contain forward-looking statements Making in India for 20 years 08 that set out anticipated results Chairman’s Message 10 based on the management’s plans Managing Director’s Letter 12 and assumptions. We have tried, Key Performance Indicators 14 wherever possible, to identify such statements by using words such Ten Years Financial Highlights 16 as ‘anticipate’, ‘estimate’, ‘expects’, Community Engagements 28 ‘projects’, ‘intends’, ‘plans’, ‘believes’, Comprehensive and words of similar substance in water solutions connection with any discussion 6 of future performance. We cannot guarantee that these forward-looking 30 statements will be realised, although STATUTORY REPORTS we believe we have been prudent in Board’s Report 30 our assumptions. The achievements Management Discussion of results are subject to risks, and Analysis 60 uncertainties and even inaccurate Report on Corporate assumptions. Should known or Chasing Governance 76 unknown risks or uncertainties Opportunities materialise, or should underlying 18 assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should keep this in mind. We undertake no 91 obligation to publicly update any FINANCIAL STATEMENTS forward-looking statement, whether Standalone Financials 92 as a result of new information, future Consolidated Financials 133 Thinking Through events or otherwise. Tomorrow Notice 172 26 The Board Bhagwan Dass Narang Rajiv Mittal Chairman Managing Director and Group CEO Jaithirth Rao Malay Mukherjee Sumit Chandwani Revathi Kasturi S. Varadarajan Independent Independent Independent Independent Executive Director Director Director Director Director and Chief Growth Officer Corporate Information Internal Auditors Registrar and Transfer Agents G. Balu Associates Karvy Computershare Private Limited Chartered Accountants Unit: VA TECH WABAG LIMITED 4 – A, Venkatesa Agraharam Road “Karvy Selenium Tower B”, Plot No. 31 Mylapore, Chennai - 600 004 & 32, Financial District, Nanakramguda P : +91- 44 - 2464 2377 Gachibowli, Hyderabad - 500 032 P : +91- 040 - 6716 1530 Cost Auditor Parthasarathy Rajiv S. Chandrasekaran Bankers Gopalan Balakrishnan Practicing Cost Accountant Axis Bank Chief Financial Company Officer Secretary Membership No. 4784 Canara Bank 4 Sreshta, 57 Subramaniam Street Export Import Bank of India Registered & Corporate Office Abhiramapuram, Chennai - 600 018 HDFC Bank ‘WABAG HOUSE’ P: +91- 44 - 2499 0286 HSBC No.17, 200 Feet ICICI Bank Thoraipakkam - Pallavaram Main Road Secretarial Auditor Sunnambu Kolathur,Chennai - 600 117 M. Damodaran IDBI Bank P: +91- 44 - 3923 2323 Practicing Company Secretary Kotak Mahindra Bank Membership No. 5837 Punjab National Bank Statutory Auditors M. Damodaran & Associates Societe Generale Bank Walker Chandiok & Co LLP No. 6, Appavoo Gramani Chartered Accountants Standard Chartered Bank 1st Street, Mandaveli Arihant Nitco Park, 6th floor State Bank of India Chennai - 600 028 No.90, Dr. Radhakrishnan Salai YES Bank P : +91- 44 - 4360 1111 Mylapore, Chennai - 600 004 P : +91- 44 - 4294 0000 2 Uster, Wastewater Treatment Plant, Switzerland For a better future for all During the year, we embarked on an organisational realignment programme. Four geographic clusters were formed to build synergies across geographies; expand global footprint; delivering world-class design and execution We are providing replicable, scalable capabilities to catalyse our growth and sustainable solutions to ensure vision of € 1 bn revenue. the availability of safe and clean water Over nine decades of experience globally. with mature process knowhow and competence, we contribute to the We are building a more robust and wellbeing of present and future resilient operating model to grow generations, as the demand for safe and clean water continues to grow consistently in a slow-growth scenario. exponentially. We are raising our performance bar to We are leveraging advanced offer better and bespoke solutions. technologies, putting in place better diligence and monitoring mechanisms to minimise risks; besides focusing We are developing a young talent pool on governance standards to build a to support our ambitious growth plans. future-ready organisation. VA TECH WABAG LIMITED CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS CORPORATE IDENTITY 3 Positioned attractively Performing sustainably for a better future In a world that is desperately seeking sustainable water solutions, WABAG’s intervention brings hope of a better tomorrow. We are one of the world’s leading providers of design, construction and operational management of water and wastewater treatment plants globally. We collaborate with local governments and industries across four geographic Vision Mission clusters - India, Europe, Middle East & Africa (MEA) and Latin America WABAG shall be a We, at WABAG, exist (LATAM). Through the conservation professionally managed to provide total water and ecological use of the world’s Indian Multinational solutions to our valued most valuable resource, we have having market leadership customers. made a sustained contribution to the in emerging markets and improvement in the quality of life of significant position in the Our strong, capable, agile well over millions of people. global market both in the and customer focused EPC and service sector of team shall ensure that water business. every customer solution is creative, priced WABAG shall encourage competitively and provided and practice a culture of in the agreed time frame caring, trust and continuous with essence of quality at learning while meeting optimum cost. expectations of employees, stakeholders and society. We, at WABAG, always have concern for the WABAG-ites shall be an welfare of our employees innovative, entrepreneurial and shall do everything it and empowered team takes to attract and retain committed to total customer the best of the talent. satisfaction and value creation. Annual Report 2015-16 4 Water challenge needs to be addressed with urgency for a better future Large parts of the world are grappling with unprecedented water challenges. Global water demand is increasing owing to population growth, urbanisation, food and energy security policies and macro-economic processes such as trade globalisation and changing consumption patterns. However, appropriate innovation and initiatives can help save the situation from turning worse. The data presented below shows that we need to act responsibly before it is too late. Grim reality 40% 36% 6,900 km3 By 2030, the world is On an average about 36% Global annual water projected to face a 40% of the population does not extraction volumes are now global water deficit in the have access to improved estimated at 4,500 km3; this business-as-usual (BAU) water resources in Africa trend is likely to continue scenario in the coming years, with withdrawals reaching 6,900 km3 in 2030 748 mn 64 bn 1/5th Around the world, 748 The world’s population is Almost one-fifth of the million people lack access growing by about 80 million world’s population – over to an improved drinking people a year resulting in 1.2 billion people – live in water source an increased freshwater areas where water is scarce demand of about 64 billion m3/year 75% 60%+ 40% Almost 75% of the Arab Most Latin American and the Globally, the volume of population lives under the Caribbean countries have renewable water per capita water scarcity level an extremely limited formal has declined by 40% in the institutional capacity to last 22 years manage water resources Sources: UN Water and RobecoSAM VA TECH WABAG LIMITED CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS CORPORATE IDENTITY 5 The world needs sustainable water solutions more than ever before. This can be achieved by: Employing highly efficient water treatment technologies as well as desalination technologies Strengthening water reuse and water recycling Utilising used water as a resource for multiple applications Steering to a better future A snapshot of how we have created a better future in the water space since 1995. 299 288 60 Drinking water Industrial water Desalination treatment plants treatment plants plants 23 423 152 Water reclamation Municipal used Industrial effluent plants water plants treatment plants 68 27 Anaerobic sludge Industrial water reuse treatment plants and recycling plants Annual Report 2015-16 6 Comprehensive water solutions WABAG offers a comprehensive service range in the water sector - extending from project conceptualisation to long-term plant operation. Full Service Range Product Portfolio Business Solutions Conceptualising Drinking water DBO – Design-Build- Financing treatment Operate Design and Engineering Industrial water Turnkey order realisation Procurement treatment Supply of System Equipment Supply Desalination of sea Components Construction and brackish water Plant Modernisation Installation Water reclamation Plant Upgrade and Commissioning Municipal used water Extension Operations and treatment BOOT – Build-Own- Maintenance Industrial effluent Operate-Transfer treatment Anaerobic sludge treatment Industrial water reuse and recycling Technology driven Accreditations