NBCC (India) Ltd

It is my pleasure to welcome you all to the 63^rd Annual General Meeting of NBCC (India) Limited. The Annual Report of your Company for the Financial Year 2022-23 along with the Directors' Report, Audited Annual Accounts, Auditor's Report and Comments of Comptroller & Auditors General of India (CAG) are available with you and, with your permission, I consider them as read.

Let me share with you the journey undertaken by the Company during the Financial Year and the Company's future anticipations.

Economic and Industry overview

For India, year 2022 was special as it marked the 75^th year of India's Independence. India became the world's fifth largest economy. Worldwide India has been projected as the fastest-growing major economy in Financial Year 2023.

The Capital Expenditure (Capex) of the Central Government, which increased by 63.4% in the first eight months of Financial Year 2023, was growth driver of the Indian economy in the current year. Growth is expected to be brisk in Financial Year 2024 as a vigorous credit disbursal, and capital investment cycle is expected to unfold in India with the strengthening of the balance sheets of the corporate and banking sectors. Further support to economic growth will come from the expansion of public digital platforms and path-breaking measures such as PM GatiShakti, the National Logistics Policy, and the Production-Linked Incentive schemes to boost manufacturing output.

India's recovery from the pandemic was relatively quick, and growth in the upcoming year will be supported by solid domestic demand and a pickup in capital investment.

The government, in recent years, provided an increased impetus for infrastructure development and investment through the enhancement of capital expenditure. The result of the efforts is visible in Ministries'/ Departments' Capex spending.

The steady increase in public capital expenditure has helped support economic growth while laying the foundation for future growth as capital assets boost economic efficiency and potential growth.

For the FY 2022-23, total income of your Company was ' 6920.57 Cr (standalone) and ' 8961.47 Cr (consolidated) whereas profit after tax was ' 231.13 Cr (standalone) and ' 278.01 Cr (consolidated). Further, the Company recommended a final dividend of 54 paisa per paid-up equity share of ' 1/- each.

The value of order book of NBCC is worth '45275.01 Cr (approx.) as on March 31, 2023. Your Company secured orders worth '4225.44 Cr during FY 2022-23 which includes Construction of Medical College and hospital at Karaikal, Puducherry; Construction of border fence and road in the state of Mizoram along indo-Bangladesh Border; Construction of Institute of Chemical Technology-Indian Oil Odisha Campus, Bhubaneswar (ICT-IOCB); Development of New Industrial Estate in UT of Jammu & Kashmir; (IBB); Special Repair & up gradation works of Civil, Electrical, Mechanical & Plumbing of Amrapali Projects at Noida & Greater Noida; Various infrastructure development works under Puducherry Smart City Development Limited (PSCDL) at Puducherry; Construction of office building & residential buildings at Kanjur Village, Bhandup (East), Mumbai; Execution of Redevelopment of MEA Hostel at K. G. Marg, New Delhi; Various construction works in MNNIT, Allahabad; Various works of SIDBI Buildings on PAN India basis etc.

The government has put its thrust on the development of infrastructure and construction services through focused policies such as open FDI norms, large budget allocation to the Infrastructure Sector, Smart Cities Mission, creation of National Infrastructure Pipeline (NIP), etc.

NBCC following the government policies in carrying out Puducherry smart city and Aligarh smart city development project under smart city mission and also has recently secured Public works department project in Puducherry. These projects have vital contribution in development of urban infrastructure.

Your Company completed major projects during the Financial Year 2022-23 which includes projects like AIIMS, Bilaspur, Himachal Pradesh valuing ' 1249.82 Cr, IIT- Mandi, Himachal Pradesh valuing ' 580.90 Cr, Regional Office Complex of NICL, Kolkata valuing ' 327.62 Cr, NIT- Narela Works, Delhi valuing ' 271.06 Cr, Construction of All India Institute of Ayurveda Yoga and Naturopathy (AIIA & N) Goa valuing ' 267.81 Cr, New Madhya Pradesh Bhawan, Chanakyapuri, New Delhi valuing ' 149.87 Cr and Tripura Institute of Technology, Agartala Phase-II valuing ' 141.37 Cr etc.

There are various projects/works under execution namely Amrapali Works, PMGSY Works, Redevelopment of GPRA Colonies, IIT's, AIIMS's, and NIT's, IIM's, Border Fencing Works, Exhibition and Convention centre at Pragati Maidan. New Delhi, Design and C/o 2000 Nos Social Housing Units in Hulhumale, Maldives, Bharat Vandana Park, East Delhi Hub, Karkardooma, National Sports University at West Imphal, Manipur, CCL Ranchi, Delhi University projects etc.

NBCC ventured into Overseas operations in the year 1977, executing projects of diverse nature in countries such as Libya, Iraq, Yemen, Nepal, Mauritius, Turkey, Botswana, Niger, Dubai. Presently, Your Company has its presence in Mauritius, Maldives, Seychelles & Dubai and exploring new opportunities in Jeddah, Burundi, Zambia etc.

Some of the notable international projects successfully completed by the Company include India Pavilion at World Expo 2020, Dubai; Institute For Security & Law Enforcement Studies (ISLES) at Addu City, Maldives; Social Housing Projects at Mare Tabac & Dagotiere, Mauritius; New Supreme Court Building at Port Louis, Mauritius; MGICC-Niger; India Maldives Friendship Faculty of Hospitality & Tourism Studies, Maldives; 200 Bedded Indira Gandhi Memorial Medical Hospital at Male, Republic of Maldives and many more projects.

Your Company is involved in major international projects which are under execution and which involves Chancery building and Residential units for HCI, Seychelles; Police Academy; National Archives & National Library; Forensic Science Laboratory; New Civil Service College; Renovation of Bank of Baroda Building at Mauritius etc.

NBCC has also bagged highest value overseas project of construction of 2000 Social Housing Units at Hulumalhe, Republic of Maldives under Fahi Dhiriulhun Corp (FDC) (Ministry of Housing & Urban Dev., Maldives). The project is on EPC mode valuing USD 130 Mn. The project is being funded under EXIM bank buyer's credit scheme.

Other key developments and achievements

The NBCC has recently completed the Integrated Exhibition-cum-Convention Centre (IECC) which was implemented at a cost of more than ' 2350 Cr as a modern complex as part of the Pragati Maidan redevelopment project. The convention centre is built on an elevated podium, giving visitors a view of India Gate. The Prime Minister applauded the tireless efforts, involvement and commitment in the construction of the project which is now dedicated to Nation. The IECC has the capacity to seat 7,000 people in its multi-purpose and plenary halls combined — larger than the iconic Sydney Opera House which can hold around 5,900 in its various halls.

Further, NBCC has been conferred with the:

1.The Atal Shastra Markenomy Award for excellence in Sustainable Economy, Clean & Green Infrastructure in November 2022.

2.Employee Excellence Award by the Economic Time in September 2022.

3.EEF Global Green Building Award for its outstanding contribution and demonstrating excellence, creativity, innovation and applied best practices in renewable energy industry in August 2022.

Sustainable Development

Being a socially responsible organization, the Company has consistently taken a leading role in various sustainability initiatives. Its unwavering dedication is evident through its commitment to uphold ecological and environmental standards in every aspect, including materials, processes, and projects. All new projects undertaken by NBCC are conceived in line with the Bureau of Energy Efficiency (BEE) and GRIHA norms.

Your Company has completed various research projects within the country including Reduction of Water Consumption in Construction by IIT Delhi; Outreach activity- Modular Construction alternative of Lecture Hall complex at IIT Roorkee- IIT Roorkee; Framework to manage construction and governance of Smart City Buildings in India; National Institute for Solar Energy (NISE), Gurugram - GRIHA; Central Bureau of Investigation (CBI) H.Q. - LEED; FSSAI, Ghaziabad- GRIHA and several other projects.

Your Company has also signed a Memorandum of Understanding, with Indian Institute of Technology Roorkee, for Joint Research & Development Centre at Greater Noida for "Sustainable Civil Infrastructure" wherein mutually agreed research projects are being undertaken by the faculty of IIT Roorkee and workshops, conferences and training programmes are being conducted at the Joint R&D Centre. Further, MoU has been extended for the next 5 year i.e. till November 6, 2024.

The Company has undertaken various research projects out of which Patent has been registered for "Development of Agriculture Waste based Accelerator for Enhanced Concrete Hardening".

Patent has also been filed for a running Research Project "Development of Self Healing Concrete Using Bacteria".

Human Resource Development

In spite of all odds of Pandemic, Your Company invariably granted career elevation and approximately 70% of eligible employees have been promoted to assume higher responsibilities.

Year 2022 saw the country celebrate the Azadi ka Amrit Mahotsav (AKAM) to commemorate 75 years of the Indian independence. With the entire nation, under the ambit of AKAM, the Company also organized several programs and competitions like Essay Writing, Quiz Competition, Workshops etc. to celebrate the spirit of 75 years of independence and the glorious history of its people, culture and achievements. Additionally, several Health Camps were also organized for the overall well-being of the employees and helping them to fully recuperate from any effects of the COVID-19 pandemic from the past year.

To this end, the Company organized numerous Health Check-Up camps ranging from Basic Life Support Training, Blood Donation Camp, Eye Check-Ups, Blood Check-Ups etc. This aided employees in diagnosing early signs of various illnesses and was in line with the philosophy of Prevention is Better than Cure. During this period, the vaccination camp for precaution dose of the COVID-19 vaccine was also organized at the HO for all NBCC employees and their dependents. In order to grant significant relief to the employees of the Company on healthcare front, Company waived off 50% of the financial liability towards premium of Group Mediclaim Insurance Policy of employees.

At HRM Policies front, policies such as Additional Transport Allowance to differently abled employees @ 5% of Basic pay is introduced as a fixed component of salary as a welfare measure for differently abled employees.

Having recently made the move to shift to the New Pension Scheme (NPS), the Company also organized several sessions about NPS to raise awareness amongst the employees about the scheme.

At Industrial Relations front, Company has maintained cordial relations with all its Stakeholders, Employees Associations and Workers' Unions during the year.

Skill Development

NBCC understands that investing in its employees' skill and knowledge is essential for achieving organizational goals and contributing to notional development. Training and Skill initiatives undertaken by the Company during Financial Year 2022-23 to move the Company's commitment in building a skilled workforce are as under:-

1.Under the Skill India initiative, your Company has been providing training and upskilling opportunities to a significant number of workers, empowering them with valuable construction-related skills. As part of the initiative, the Company has conferred 2867 "Recognition of Prior Learning Certificates" across 27 numbers of its project sites.

2.Your Company understands the importance of cultivating leadership skills within the organization. The company has implemented leadership development programs to nurture and groom future leaders.

3.Your Company has been conducting technical training programs to enhance the technical capabilities of its workforce. These programs cover areas such as project management, construction techniques, quality control, and safety protocols, equipping employees with the necessary skills to deliver high-quality construction projects. The Company has conducted 28 Training Programs accruing 3155.5 learning man-days.

Some of the key training programs conducted by your Company during the Financial Year are Project Execution & Concrete Technology; Application of Electrical Engineering in Civil Engineering Projects; Material Testing; Sensitization of Women on Health; Public Procurement; Orientation Programs; Welding Technology; New, Affordable, Validated, Research Innovation Technologies for Indian Housing etc.

Social Commitments

In the realm of corporate endeavors, NBCC stands as a shining example of an organization that has embraced a comprehensive approach to Corporate Social Responsibility (CSR). Beyond its core pursuits in construction and infrastructure development, NBCC has ventured into the sphere of CSR with a deep commitment to addressing multifaceted social, economic, and environmental challenges.

One of the striking features of NBCC's CSR initiatives is their alignment with the genuine needs of society. From healthcare and nutrition to education and infrastructure development, the Company's CSR endeavors resonate with the essential requirements of the communities it serves. This alignment underscores the organization's ability to listen and respond to the concerns and aspirations of the people, thus contributing to sustainable development at a grassroots level.

By embracing a holistic approach and addressing key societal needs, the Company demonstrates that corporate success can be harmonized with social progress. Through its commitment to health, nutrition, education, infrastructure, and employment, NBCC proves that true corporate responsibility extends beyond bottom-line considerations, embodying the spirit of a conscientious and socially conscious corporate citizen.

Various CSR initiatives have been undertaken by the Company during the Financial Year 2022-23 to uplift the lives of marginalized and underserved communities. There are various remarkable CSR projects initiated by NBCC in different parts of India namely Distribution of Aids & Appliances in Nuh, (an Aspirational District) Haryana; Construction of community health center facility and procurement of machinery equipments at Seyochung Sub-Division Kiphire (an Aspirational District), Nagaland; Healthcare Infrastructure in Kandhamal, (an Aspirational District) Odisha; Ambulances for Healthcare Facilities; Procurement of ECHO Machine & Training in Echocardiography in Moga (an Aspirational District), Punjab; RO/Water Treatment

Plant for "AROGYA BHAWAN," Odisha; Support for Disabled Students at Muzaffarnagar, Uttar Pradesh; Incubation of Women Startups Indian Institute of Management Visakhapatnam (IIMV) in Andhra Pradesh; Polymer Research Laboratory at Hindu College; Infrastructure Development in Government Schools; IT Hardware for Indian Red Cross Society, Kashmir.

The fight against the COVID-19 pandemic is reflected in the installation of oxygen generation plants and diesel generation plants in Siddharthnagar, (an Aspirational District) Uttar Pradesh. Additionally, the procurement of oxygen concentrators as part of CSR efforts addresses the urgent need for medical supplies.

In pursuit of comprehensive community development and sustainable progress, Special Protection Group Dwarka (SPG) and NBCC have joined forces in a collaborative endeavor that highlights the transformative potential of CSR through a multi-faceted approach that encompasses the construction of rainwater harvesting pits and the promotion of apiculture, sericulture, and fisheries, this partnership exemplifies how organizations can pool resources and expertise to catalyze positive change on multiple fronts. The project is being executed in phased manner.

In conclusion, these initiatives collectively embody a holistic approach to social development. These efforts underscore the significance of CSR in creating a more equitable and inclusive society.

The Company is on track to reap rich benefits both in India and overseas in the following manner:

1.With its combination of experience and expertise, capacity and capabilities, reach and presence - complimenting a diverse business model i.e. NBCC's redevelopment model, NBCC is in touch with various State Governments for redevelopment and land monetization of which major projects secured are PMC for redevelopment and modernisation of Government of India Presses through self financing model at Mayapuri, New Delhi, Kolkata & Nasik and various high value major projects are likely to be secured in near future.

2.Your Company presently has remarkable presence and expanding its footprints in Overseas. NBCC has various projects in pipeline in countries like Jeddah, Burundi, Zambia and exploring new opportunities in other African Countries.

3.Diversification of the Company into new sectors on domestic platform namely Aviation sector, Health sector under Ayushman Bharat Mission- Construction of District and Central Drug ware house, Emergency Covid centers under National Health Mission (NHM), Defence works, procurement of high end machines and equipments (printing machines), Smart city mission projects, irrigation projects like renovation/ repair of power channel & development of canal networks and industrial estates etc.

4.The huge infrastructure gaps in the Country will increase the demand for construction sector. Further, rapid population growth would lead to increased pace for urbanization. With renewed thrust of the government on infrastructure and real estate sectors, the Company is poised for a phase of growth in the near and mid-term.

5.Based on Company's expertise and competence, the Hon'ble Supreme Court in 2019 assigned the job of completion of Amrapali Stalled Projects to NBCC. The Company has already made significant and worthwhile contribution in executing stalled projects of realtors. For restoration of faith of Home Buyers, NBCC is continuously delivering flats under guidance of Ld. Court Receiver & Committee members. Completing these stalled projects will go a long-way in delivering homes to buyers as well as ensure crucial support for the real estate sector, besides establishing the Company as a leading player in the real estate space.

Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns the interests of shareholders, directors, management, and employees. The Company is committed to adopt best Corporate Practices based on transparency, conscience and accountability. Comptroller & Auditor General of India (CAG) have given "NIL" comments on the financial statements (standalone and consolidated) of the Company for the Financial Year 2022-23.

Looking Ahead

The Indian construction sector is the Country's economic engine and is second largest contributor to the GDP. Infrastructure plays a huge role in propelling other industries and India's overall development. The industry has recovered well after short term downfall due to Covid -19 pandemic with increased investment by government in the construction sector.

Our primary focus is on securing our business foundation and advancing our practices to achieve greater economic efficiency and reliability. By adopting a progressive approach, we aim to become a more dynamic and forward-looking organization, positioning ourselves for sustained growth and success in the future

Acknowledgement

I would like to take this opportunity to express my heartfelt appreciation and gratitude to the Government of India, specifically the Ministry of Housing and Urban Affairs, Ministry of Finance, Department of Public Enterprises, DIPAM, SEBI, and Ministry of Corporate Affairs (MCA), as well as all other Central and State Government Agencies, C & AG of India, our esteemed clients, valued customers, dedicated employees, and stakeholders for their support and cooperation which has been instrumental in taking the Company forward on its journey of progress and success.

With Best Wishes,