Afcon Book.indd - Afcons Infrastructure Ltd.

AFCONS INFRASTRUCTURE LIMITEDB. Other Constraints and challenges :Despite the Construction Industry in India witnessing growth in comparison to other emerging economies and developed economies in the lastyear, the developments on the economic front cast constraints and challenges on the prospect of the industry mainly due to the following:1. Change in government policies, priorities and its budgetary allocation for infrastructure development.2. Global slowdown in economic activities.3. Availability of skilled manpower and high attrition levels of employees in the industry.4. Delay in award of contract and releasing work fronts and technical clearances for execution of projects.5. Dispute resolution mechanism is very time consuming resulting into significant blockage of working capital.6. Tighten Liquidity position and interest rate risks.Your Company’s presence in projects across various segments of construction business both in India as well as abroad has helped to mitigate theabove constraints and also ensure long term sustainable growth with profitability.Internal Control Systems and their AdequaciesThe Company has in place an adequate Internal control system. The financial control operates through continuous Internal Audit, ERP System anddistribution of functional responsibilities. Internal Auditors conduct audits of sites of the Company throughout the year to test the adequacy of theinternal systems and suggest continual improvements. Internal Audit reports and adequacy of internal controls are reviewed by the Board’s AuditCommittee on a regular basis. The operational control exist through well laid out system of checks and balances and hierarchy of reporting fromsite level to central management groups to the senior management and the directors.Human Resources DevelopmentIn AFCONS, employees are a part of the performance raising team in professionalism, opportunity, responsibility, belongingness andaccomplishment with Company’s vision. Our employees are considered the most valuable asset and the Company is committed to enableemployees to maximize their contribution to the company, while also maintaining effectiveness between their work and personal lives. By creatinga framework for managing Work/ Life effectiveness, the Company enhances our ability to develop and retain our employees and demonstrate ourcommitment to creating a great place to work in the AFCONS Innovative Culture.The Company HR Policy focuses on the following key areas:1. Talent Acquisition through a defined talent management strategy in alignment with business goal and targets.2. Imparting Learning and Development to employees and prepare them for their current and future roles. The Company has till dateimparted 1 Lac man hours of training amongst its employees (equivalent to 3 man days of training per employee) which is close to the globalbenchmark of 4 man days per employee.3. Adequate Compensation Package coupled with Incentives, rewards and recognitions.4. Culture building focus on building a culture of innovation and creativity in construction process.Our mission statement is “to be prominent transnational infrastructure company recognized for business innovations, focused on total satisfactionand enhanced value creation of all stakeholders”. The mission statement emphasis on a “Total Satisfaction” model which lays down covenantexpected from employees and employer.Your Company endeavor to provide its employees a professional, congenial, safe work environment coupled with opportunities for personal growthand development.Your Company is rated as one of the best companies to work for in the Construction and Infrastructure sector by the Construction World for lastthree years.Cautionary statementThe statement in management discussions and analysis describing the Company’s operations and expectations are “forward looking statements”.Actual results may differ owing to environmental dynamics.7