NEWSLETTER

Q1 FY17 PERFORMANCE ON TRACK

The Q1 FY17 performance of Capacit'e Infraprojects Limited is on track to achieve the full year target in respect of all the key parameters – Order Booking, Sales, EBIDTA, PAT, Asset Turnover Ratio, Net Debt, Receivables in no. of days of Sales and Inventory in no. of days of Cost of Goods Sold.

Capacit'e has booked new Orders worth Rs. 600 Cr in Q1 FY17 :

Capacit'e has achieved the targeted Sales of Rs. 300 Cr in Q1 FY17 :

NEW PROJECTS

Capacit’e Infraprojects secured new Orders from Sunshine Group for a Residential Building Project in Goregaon, Mumbai and from Prestige Group for a Residential Building Project in Kochi. With this, the geographical spread of Capacit’e has expanded to all the top seven building construction markets in India (Greater Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Chennai and Kochi).

NEWSLETTER, JULY 2016

CORPORATE ACTIONS

EY was enlisted as Statutory Auditor along with Mr. Ajay Garg for FY 2015-16 and the audited financial statements have been published accordingly, adopting the ‘survey-of-work-done method’ under AS-7 whereby the certified bills are recognised as revenue. EY designed the ICFR compliance architecture which was successfully implemented during the period ending 31st March 2016. PWC carried out an audit of the Environmental, Social and Governance functions of Capacit’e Infraprojects, to identify improvements to match global best practices. Alvarez & Marsal carried out a Financial Due Diligence of Capacit’e Infraprojects for the period ending 31st March 2016. Crawford Bayley & Co. carried out a Legal Due Diligence of Capacit’e Infraprojects for the period ending 31st March 2016. Marsh India carried out a detailed study of the insurances taken by Capacit’e Infraprojects, following its appointment as the Insurance Advisor. CRISIL carried out an exclusive study for Capacit’e Infraprojects to come up with a report on industry outlook and business opportunities in the top building construction markets in India. The CSR Trust was established by Capacit’e Infraprojects, with a commitment to make positive contribution to the society particularly in the field of skill development. Capacit’e Infraprojects is also firming up an Employee Stock Option Plan (ESOP), to be administered through an ESOP Trust.

NEWSLETTER

Real Estate (Regulation & Development) Act, 2016 The enactment of Real Estate (Regulation & Development) Act, 2016 is a welcome development for the construction industry in general and for Capacit’e Infraprojects Limited in particular. A brief summary of the impact of the RERA Act on CIL is presented below : 1. Requirement of registration of the Project with the

Authority : Beneficial, as this will form part of the checklist for Contract finalisation with the Developer.

2. Prohibition to accept more than 10% of cost without

execution of agreement : Beneficial, as this will restrict the Project launch to be only when sales are tied up by Developers Or otherwise when the Project cash flow is tied up through financing arrangements.

3. Developer’s obligation to adhere to sanctioned plan

and specifications : Beneficial, as this will avoid subsequent changes delaying the construction schedule.

4. Developer’s obligation to rectify structural or other

defects : Beneficial, as the five year guarantee requirement will boost the demand for good quality of construction, with willingness to pay the appropriate price for the same.

5. Developer’s obligation not to use the sale proceed

received in any other project : Beneficial, as this will dedicated availability of fund from the Developer as required for the construction work.

6. Developer’s obligation to complete the Project in

time : Beneficial, as the interests of the Developer and the Contractor will be aligned for expeditious completion.

7. Developer’s obligation to get the Project insured :

Beneficial, as the additional cost will get paid if qualifying under the Insurance proceeds.

The new orders in the building construction segment to be booked by Capacit'e will be RERA compliant, making a positive contribution for the business.

ASSET MANAGEMENT

Capacit'e Infraprojects accords top priority and utmost care for the assets procured and deployed by it. To this effect, it has established a Central Yard near Mumbai for refurbishment of assets, to extend the durability and usable life. Rust conversion and painting of cuplock system besides chemical treatment of aluminium Formwork to remove concrete are some of the measures implemented by Capacit’e to this effect.

BALANCED SCORECARD @CAPACIT'E

A motivated team, combined with efficient processes, enables an organisation win customer satisfaction and contributes towards its financial excellence. People and systems complement each other. Business processes howsoever well established, cannot be effective without the productive manpower to manage them. A business is run by its people. The quality of human resource determines the business efficacy. The most important asset of an organisation therefore is the human capital accumulated by it. It is imperative that the business processes are well defined and the human talent requirements are well mapped. The acquisition and management of human resources is an important function that requires continuous focus and improvement. The thrust is on ensuring productive output from competent manpower. Human productivity focuses on the VALUE generated from the TIME invested by the personnel. It is therefore necessary to have the right persons in the right positions, having due regard to the knowledge, skill and attitude required. Capacit'e Infraprojects Limited is driven by the passion to excel, and in synchronisation with the above concept, Capacit'e has invested in building a motivated team and in establishing effective processes, that deliver on customer satisfaction and financial excellence. As part of the organisation development drive, a training programme on Effective Personal Productivity was conducted by Mr. Ameen Merchant of LMI for key personnel of Capacit'e during Apr-Jul 2016.

APPRECIATION

Team Capacit’e headed by Mr. D V Ramana was appreciated for the expeditious completion of Towers in Sattva Cadenza, Bengaluru. Keep it up !

Excellent Financials

Motivated Team

Satisfied Customers

Effective Processes

NEWSLETTER

SAFETY, HEALTH & ENVIRONMENT @ CAPACIT'E Monsoon readiness workshops were held by the HSE team to ensure smooth operations in a safe manner :

Periodic Third Party Inspection & Testing of assets (including Tower Cranes, Material & Passenger Hoists) are undertaken for safe operations :

Good housekeeping practice imbibed at Sites :

Five Golden Rules implemented across Sites :

Daily tool box talks on HSE topics held at Sites :

Safety ensured during construction process :

NEWSLETTER

CAPACIT'E @ NCR

Godrej Summit Gurgaon Project in advanced stage of construction :

Bharti Worldmark Gurgaon Project gaining momentum :

Brookfield NOIDA SEZ Project in full speed :

COMPOSITE STEEL STRUCTURES Capacite Structures Limited has ceased to be a Related Party of Capacit'e Infraprojects Limited. The two entities will however continue to join hands for offering to undertake the manufacture, supply, erection and construction of composite steel structures.

www.capacite.in

CAPACIT'E INFRAPROJECTS LIMITED

605-607, Shrikant Chambers, Phase 1, Adjacent to R K Studios,

Sion-Trombay Road, Chembur, Mumbai 400071, India

Phone : +91 22 717 33 717 | Email : info@capacite.in