Inkel Limited Unlisted Shares

Annual Report Summary

INKEL's 16th Annual Report for 2022-2023 highlights the company's financial performance and operational activities.

Overview of INKEL:

INKEL Limited, a Public-Private Partnership (PPP) enterprise of the Government of Kerala, aims to boost infrastructure development in Kerala by attracting private investment. The company acts as a bridge between the state government and the private sector, engaging with public sector banks, institutional investors, and NRI investors. INKEL’s mission focuses on professional expertise for quality infrastructure development with emphasis on safety and quality in every project. INKEL's expertise spans Project Management Consultancy (PMC), EPC (Engineering Procurement and Construction) services, and renewable energy solutions, specializing in solar and wind energy.

Financial Performance:

The fiscal year 2022-2023 was a milestone, with INKEL achieving its highest-ever turnover. The company's income grew by 37% to ₹81.16 Crore. Net profit saw a 1007% increase, reaching ₹12.88 Crore. The growth was attributed to good project implementation and monitoring.

Project Management Consultancy (PMC):

INKEL's PMC division provides comprehensive project management services, from concept to commissioning. As an ISO 9001:2015 certified consultancy, it delivers solutions for infrastructure projects, including hospitals, roads, bridges, conservation projects, and institutional and industrial buildings. INKEL receives 3-7% of project costs as centage fee for PMC services. The division's work involves feasibility studies, engineering designs, estimation, tendering, contractor selection, contract awarding, project execution, monitoring, and control. INKEL also assists with statutory approvals and provides training sessions for capacity building. Clients include government departments and organizations like the National Health Mission, Smart Mission Limited, KSIDC, and KINFRA. INKEL is managing 177 projects with a total project outlay of ₹4280 Cr, with ₹2484 Cr received as Financial Sanction from KIIFB. The distribution of PMC projects is sector-based, with health dominating at 77.30%.

Renewable Energy Department:

INKEL has expanded into renewable energy, particularly solar power projects in Kerala and Karnataka, recognized as a "Government accredited agency" for renewable energy. The company has implemented projects worth 15 MW in Kerala. As of 2022, INKEL received the Kerala State Renewable Energy Award in recognition of their effort to develop cost-effective photovoltaic solar plants. The Renewable Energy (RE) division provides services ranging from engineering to end-of-life handling. INKEL also works on managing solar energy projects across various sectors, including utility, rooftops, and special projects like floating solar plants and battery energy storage systems. The company is pursuing accreditation for EV charging stations. INKEL ventures into Karnataka, executing hybrid rooftop solar systems. INKEL has completed over 500 installations. INKEL's cumulative solar capacity has exceeded 15.649 MWp, with further 15MWp+ projects in the pipeline. In addition to solar, INKEL plans to venture into wind farm development and EV charging station installations. RE performance shows an upward trend in achievement over the years.

Projects at a Glance:

The report presents visual examples of completed and ongoing projects, including:

• Completed Hospital Project FY22-23 - Cancer Block at GH EKM
• Completed school buildings such as GHSS Kizhkupuram & GHSS Anapara
• Alappuzha and Muziris Heritage Projects
• Completed treasury projects such as Stamp Depot Nedumkandam
• Ongoing major hospital projects such as Cochin Cancer Research Center and Govt. Medical College Ernakulam
• Several solar power plants

Major Achievements & New Verticals:

INKEL received the Kerala State Renewable Energy Award for best company of the year 2021-22 and multiple awards at the Solar Quarter Business Meet 2023. They are expanding into new verticals: Wind Energy, Logistic Parks, Warehouse Projects, Green Mobility

Corporate Governance & Board Matters:

The company's 16th Annual General Meeting is scheduled for August 19, 2023. The board recommends a dividend of 4.5% (₹0.45 per equity share). The Board of Directors consists of Mr. P Rajeeve (Chairman), Dr. K Ellangovan (Managing Director), Mr. Suman Billa IAS, Mr. Varghese Kurian, Mr. C V Rappai, Mr. Jayakrishnan Krishna Menon, Mr. Mohamed Althaf, Adv. Geethakumary P.S., and others. The report details several board committees including Audit, Nomination and Remuneration, Stakeholders Relationship, Corporate Social Responsibility, Subcommittee on Legal Matters, and Committee for Finalization of Operational Strategy.

Compliance and Audit:

The report includes sections on: Internal Financial Controls, Directors’ Responsibility Statement, Auditors’ Report (including qualifications), Secretarial Audit Report, details of legal cases, and compliance with various accounting standards and regulations. M/s. Sridhar & Co, Chartered Accountants, are the Statutory Auditors. A secretarial audit report is included and acknowledges that INKEL has complied with applicable secretarial standards issued by the Institute of Company Secretaries of India (ICSI).

Financial Statements & Disclosures:

The report contains standalone and consolidated financial statements, including the balance sheet, statement of profit and loss, and cash flow statement. It provides details on share capital, reserves and surplus, borrowings, trade payables, provisions, property, plant and equipment, investments, and related party transactions. There is also a note concerning fraud related to investment in Seguro Foundations & Structures Private Limited (SFS) and the steps taken to recover funds, however, the loss has been accounted for.

Risk Management & Vigil Mechanism:

The company has a risk management system and a vigil mechanism for reporting concerns.

In closing, the Directors acknowledge and appreciate the support from shareholders, the Government of Kerala, agencies, officials, bankers, business associates, and employees.