Page 1


01 Consolidated Financial Highlights

08

62

Corporate Information

Report on Corporate Governance

10

77

Chairman’s Letter

Stand-Alone Financials

12

146

Board of Directors

Consolidated Financials

14

215

Management Discussion and Analysis

Accounts in Foreign Currency

28

224

Ten Years’ Highlights

Products and Services

30

228

Directors’ Report

Establishments

CONTENTS


L539

L6,120

L127

EBIDTA FROM CONTINUING OPERATIONS

GROSS SALES AND SERVICES FROM CONTINUING OPERATIONS

PROFIT BEFORE TAXES FROM CONTINUING OPERATIONS

L110

8.1

-11.9

PROFIT/ (LOSS)

ROCE FROM CONTINUING OPERATIONS

RONW ON TOTAL OPERATIONS

CRORE

Earning before Interest, Depreciation, Taxes & Amortisation, including Other Income

CRORE

After taxes, Minority Interest & Share of Associates and Joint Ventures (Net)

CRORE

PERCENT

CRORE

PERCENT

Return on Net Worth

Return on Capital Employed

CONSOLIDATED FINANCIAL HIGHLIGHTS 1


BUILDING ON STRENGTH L300+ C R OR E

OPPORTUNITY FOR CG TRANSFORMERS OVER THE NEXT 2 YEARS IN THE SOLAR SECTOR

L1,100+ C RORE

OPPORTUNITY IN THE UHV SEGMENT ANNUALLY FOR CG

Maintaining an unwavering focus on India as the core market, CG has developed capabilities to address the changing needs of the country, industries and customers. Be it new product development or leveraging potential markets, for CG it has been all about moving to the next level of growth, thus increasing its reach and expanse. CG has retained its market position and growth by not only building on its core competencies, but also by pushing the envelope and gearing up for the future possibilities. 2 CG POWER AND INDUSTRIAL SOLUT IONS LIMITED 2017


Building on strength is about bettering and maximising our performance, while staying focussed on our core capabilities—manufacturing expertise, skilled manpower and technological evolution

L200

C R OR E

ANNUAL MARKET OPENED BY NEW LVRM PRODUCTS

CG’s approach across its businesses has been that of moving one level up in product development with better and more complex equipment that cater to not just demands of the existing market, but also addresses the ones with potential. CG's offerings cover the growing needs of Nuclear Power, UHV T&D, Renewable Energy, Railways and several Industrial sectors.

L3,500

C RORE

GROWING OUR PRODUCT PORTFOLIO EXPANDING OUR MARKET REACH

ESTIMATED BUSINESS PROSPECT FOR THE NEXT 3-4 YEARS IN RAILWAYS

Complementing its existing market position, CG is entering niche segments, developing alternate markets and nurturing new opportunities, thus helping bolster growth and expand its reach. CG’s way forward has it focussing and leveraging on its strengths to enter new markets and segments, while developing more HTRUQJ]FSIJKÁHNJSYUWTIZHYX

BUILDING ON STRENGTH 3


ADDRESSING THE GREEN NEEDS Recognizing the imperative and the obligation of making the world a greener place by using sustainable energy, CG has developed products that contribute to this objective.

SUPPORTING THE NUCLEAR SECTOR CG has aligned with NPCIL's vision of indigenously building a nuclear power plant that would provide added impetus to the “Make in Indiaâ€? strategy and be a proof of India’s potential of becoming a nuclear power manufacturing hub. In a breakthrough order, NPCIL codeveloped with CG a motor to operate inside the reactor dome, making CG one of the only two companies in India to have this capability. The 6MW vertical motor will be used on the primary coolant pump for the 700 MW Rajasthan Atomic Power Project (RAPP) reactors 7 & 8 in Rawatbhata, Rajasthan. CG has also supplied a shutdown cooling pump motor to NPCIL. CG has also executed a package order KTWYMJMNLMXUJHNĂ HFYNTS.*** complaint Variable Frequency Drives (VFD) for RAPP and for the Kakrapar Atomic Power Project (KAPP) reactor 3 & 4 in Gujarat. This drives system VZFQNĂ JX(,YTTKKJWYMNXUWTIZHYKTW other NPCIL projects. In addition, CGs switchgear division too has been approved by NPCIL for supply of Medium Voltage Switchgear panels and has supplied these to both the projects in Rajasthan and Gujarat. The approval and supply of these high XUJHNĂ HFYNTSFSIVZFQNY^UWTIZHYXYT NPCIL opens up a large market for CG products in this critical segment.

L350 CRORE

APPROXIMATE MARKET FOR CG’S MV MOTORS IN THE NUCLEAR SECTOR OVER THE NEXT 4-5 YEARS

L6

CRORE APPROXIMATE MARKET OPENED FOR CG DRIVES IN THE NUCLEAR SECTOR IN THE NEXT 1 YEAR

L200 CRORE

POTENTIAL FOR CG SWITCHGEAR IN THE NUCLEAR SECTOR IN INDIA OVER NEXT 3 YEARS

10 NEW

NUCLEAR REACTORS TO BE BUILT BY THE GOVERNMENT OF INDIA GIVING FILLIP TO THE DOMESTIC INDUSTRY CATERING TO NUCLEAR POWER

Focussing on solar applications, CG has designed, manufactured and supplied distribution transformers for this sector. Transformers for solar applications, have complex requirements as they need to be effective for variable frequency, variable voltage and are subject to harmonic distortions. The solutions are technically challenging due to the combined effect of AC and DC devices being integrated into the same system. CG's immense experience, technological competence and in depth analysis of various solar installations has enabled it to successfully overcome these technical hurdles and manufacture and supply state of the art transformers for use in solar applications. In addition, CG has developed dedicated drive solutions "SURAJ" for Solar power driven pumping applications. Solar pumps offer an JSJWL^JKĂ HNJSYJHTKWNJSIQ^FSI economical option to traditional grid power driven or diesel power driven pumps. They also provide a readily available solution to regions where accessibility to grid power is lacking. CG drives for this application have been IJXNLSJI\NYMGZNQYNSXJQKFIFUYN[J maximum power point tracking algorithm with an easy to use interface, FQQT\NSLKTWTUYNRZR\FYJWĂ‚T\TZYUZY

7,00,000 SOLAR PUMPS TO BE INSTALLED BY 2020 CREATING ADDITIONAL SCOPE FOR CG DRIVES SOLUTION

4 CG POWER AND INDUSTRIAL SOLUT IONS LIMITED 2017


DRIVING INDUSTRY GROWTH CG has been at the forefront of developing products and technology to drive industry growth. With the launch of MNLMJWTZYUZYFQYJWSFYTWXKWTRP;& YTP;&(,MFXSTYTSQ^UWT[NIJI a high quality product to the industry but also gained additional access to the Diesel Generating set market of I (WTWJ&STYMJWGJSJĂ YTKYMNXMFXGJJS the access to the nascent mini turbine driven power generation market, showing signs of gradual growth. The introduction of special Smoke spill motors, used to J]YWFHYXRTPJNSYZSSJQXFSIHTSĂ SJI commercial places, has opened the I Crore Air ventilation market in India. CG's brake series range of motors for hazardous areas has helped consolidate and acquire new customers in the pharmaceuticals and petrochemicals sector, while the larger output AC and DC motors have helped make deep inroads into the sugar, steel and infrastructure industries, resulting in greater market share and topline growth.

L150 CRORE

MARKET ACCESSIBLE TO CG WITH THE NEW HIGHER RANGE ALTERNATOR DEVELOPED THIS YEAR

POWERING THE GRID CG has been actively involved in addressing the requirements in the UHV segment. Its UHV products namely, Transformers, Reactors, Current Transformers, Capacitive Voltage Transformers, Instrument Transformers, Circuit Breakers and Surge Arresters, are already in use for various projects of the national utilities. In addition, CG's recent successes in securing orders from 54<*7,7.)KTWP;GWJFPJWXYMWT\X open an opportunity to garner a bigger share of the T&D equipment requirement NSYMJHTRNSL^JFWX9MJXNLSNĂ HFSY TWIJWKTWP;8+,FX(NWHZNY'WJFPJW (GCB) from POWERGRID for its various substations, connecting the grids in various states of India, reinforces CGâ&#x20AC;&#x2122;s existing leadership in the UHV T&D segment in India.

GROWING OUR PRODUCT PORTFOLIO Building on our manufacturing potential, we are addressing niche product requirements, leveraging new opportunities and evolving technologically

L50

CRORE APPROXIMATE ANNUAL REQUIREMENT FOR 765KV BREAKERS IN INDIA

BUILDING ON STRENGTH 5


CONSOLIDATING THE SOUTH EAST ASIAN MARKET

USD154

MILLION

ALL TIME HIGH ORDER INPUT FOR INDONESIAN ENTITIES

USD120 MILLION

ADDITIONAL SEAP MARKETS ACCESSIBLE ANNUALLY TO CG

EXPANDING OUR MARKET REACH Using our strong base to grow and reach further into markets with potential

SOLAR POWERING THE FUTURE

50

SOLAR PARKS TO BE COMMISSIONED BY GOVERNMENT OF INDIA BY 2019-20 AT AN INVESTMENT OF I8100 CRORE

L6,00,000

CRORE

INDIA'S INVESTMENT PLAN TO INCREASE SOLAR POWER CAPACITY TO 100 GW BY 2022

6 CG POWER AND INDUSTRIAL SOLUT IONS LIMITED 2017

&SFQQYNRJMNLMTWIJWNSUZYTK:8) million for CG's Indonesia business NS+>NX[FQNIFYNTSYMFY(, X Indonesian operations are becoming even stronger and advanced. CG won FXNLSNĂ HFSYTWIJWTK:8)RNQQNTS KWTR59513NS+>KTWXZUUQ^TK transformers that will be installed across their transmission network, spread over a group of islands in the Indonesian archipelago. In addition to CG's lead in the transformer business in Indonesia and Malaysia, CG is expanding in the region by setting up a Switchgear factory in Indonesia, in joint venture with the biggest state utility PT PLN. This further endorses CG's commitment to playing a vital role in the growing South East Asian market, and enabling it to access an additional minimum USD 120 million in the region.

CG has aligned with the nationâ&#x20AC;&#x2122;s green energy needs and has focussed on the niche market of renewables. India MFXFSFRGNYNTZXYFWLJYTK,<TK renewable power by 2022. This includes 100 GW of Solar power and 60 GW from wind power, with the balance from biomass and small hydro power. The Solar sector has shown phenomenal growth from 2GW in 2014 to over 12GW by March 2017. This year the countryâ&#x20AC;&#x2122;s solar capacity is expected to be 89 percent higher than 2016, making it the YMNWIQFWLJXYLQTGFQXTQFWRFWPJY9MZX this segment is beyond doubt the future of electrical energy and CG has seized this opportunity.


The SEAP region is also one of the core export markets for India and that makes the SEA

MODERNISATION OF THE INDIAN RAILWAYS

manufacturing hub synergetic to CG 's growth strategy. CG would hence further leverage the synergies between the Indonesian and Indian operations, to grow the

Besides catering to the regular and conventional equipment needs of Indian 7FNQ\F^XNSYMJĂ JQITKWTQQNSLXYTHP products like Traction Equipment, Loco Transformers, Converters/Inverters, Control Electronics (Train Management System), Integrated Propulsion Solutions, Signalling Equipment like Relays and Point Machines and Gears etc., CG is also keenly working to meet the new technologically advanced emerging needs of Railways.

SEAP market.

L625 CRORE

Renewable energy has been a huge positive for CG's transformer business. This compounded with the Governmentâ&#x20AC;&#x2122;s push has resulted in a sectoral momentum that has opened up a new alternate market for CG, a niche segment led by solar power and expanding to other renewable sectors such as wind power.

Railway business at CG has been growing consistently over the years. Of the nearly 100% growth in order input in CG's Industrial Systems business this ^JFWFXNLSNĂ HFSYUTWYNTSTKNYMFXHTRJ from the Railways and secures a higher revenue stream going forward. One can attribute this to CGâ&#x20AC;&#x2122;s consistent focus in aligning its product portfolio with the requirements of Indian Railways. During (,FHMNJ[JIFSTWIJWNSYFPJ of I(WTWJKWTR7FNQ\F^XFRFOTW part of which came from new products.

ORDER INTAKE FROM RAILWAYS FOR THE YEAR 2016â&#x20AC;&#x201C;17

L700 CRORE

APPROXIMATE MARKET OPPORTUNITY FOR CG IN THE PROPULSION SYSTEM MARKET

L150 CRORE

ANNUAL OPPORTUNITY FOR CG IN ELECTRONIC INTERLOCKING SYSTEM

In the new expanding area of AC EMU/ MEMU, CG can serve the propulsion system market of about 200 Power Cars comprising of Traction Electronics Controls, Transformer, Traction Motors that throws open an opportunity of around I700 Crore annually. CGâ&#x20AC;&#x2122;s Propulsion System will help Railways in running trains at higher speed with less consumption of energy. CGâ&#x20AC;&#x2122;s Electronic Interlocking System under development for Indian Railways FHHTWINSLYT7)84XUJHNĂ HFYNTS will provide the operator with total control over the yard for ensuring safe movement of trains. CGâ&#x20AC;&#x2122;s Electronic Interlock would be in compliance to International standards and to meet the highest Safety Integrity Level requirement.

BUILDING ON STRENGTH 7


CG is a pioneering leader in the UHV Power Equipment segment in India

CORPORATE INFORMATION

8 CG POWER AND INDUSTRIAL SOLUT IONS LIMITED 2017


CHAIRMAN GAUTAM THAPAR

CEO AND MANAGING DIRECTOR KN NEELKANT

EXECUTIVE DIRECTOR â&#x20AC;&#x201D;FINANCE AND CFO MADHAV ACHARYA

COMPANY SECRETARY MANOJ KOUL

NON-EXECUTIVE DIRECTORS

BANKERS

BHUTHALINGAM HARIHARAN JITENDER BALAKRISHNAN

STATE BANK OF INDIA AXIS BANK LTD. BANK OF MAHARASHTRA CORPORATION BANK CANARA BANK ICICI BANK IDBI BANK CREDIT AGRICOLE CIB STANDARD CHARTERED BANK YES BANK LTD. THE ROYAL BANK OF SCOTLAND

(w.e.f 2 May 2017)

OMKAR GOSWAMI RAMNI NIRULA SANJAY LABROO SHIRISH APTE (upto 1 April 2017)

VALENTIN VON MASSOW

AUDITORS SHARP & TANNAN CHATURVEDI & SHAH

REGISTERED OFFICE 6TH FLOOR, C G HOUSE DR ANNIE BESANT ROAD WORLI, MUMBAI 400 030

CORPORATE INFORMATION 9


CHAIRMAN’S LETTER

Revenue from the Low Tension Motors crossed the I1000 crore mark in 2016–17.

10 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


DEAR SHAREHOLDERS, As we all know, when a cabinet shelf or drawer becomes untidy or unmanageable, it is time for spring cleaning. That is exactly what the Board of Directors of CG Power and Industrial Solutions Limited (â&#x20AC;&#x2DC;CGâ&#x20AC;&#x2122;) and senior management have been doing over the last two years. Let me take you through the process. CG had made some excellent and very attractively priced international acquisitions IZWNSLYMJĂ WXYIJHFIJTKYMJXYHJSYZW^ 9MJXJJFWSJIMJFQYM^UWTĂ YXNSYMJNWĂ WXY seven to eight years under CG, on account of better managerial oversight and due to an economic boom in global markets. After the crash of 2008â&#x20AC;&#x201C;2010, both European and North American demand for power systems and solutions started to dry up. Meanwhile, operational costs had risen, due to manufacturing problems which started XMT\NSLZUTSYMJXMTUĂ&#x201A;TTWXQJFINSLYT WJ\TWP&QQYMJXJSJLFYN[JKFHYTWXHTRGNSJI to create a situation when the European and Canadian operations started making lossesâ&#x20AC;&#x201D; Ă WXYWJQFYN[JQ^XRFQQFSIYMJSUWTLWJXXN[JQ^ QFWLJWX\FRUNSLYMJUWTĂ YXTK^TZW (TRUFS^¸X.SINFGFXJIUT\JWFSINSIZXYWNFQ systems operations. Some hard decisions needed to be taken. A major restructuring initiative was called for. Your Board of Directors unanimously IJHNIJIYTMN[JTKKYMJXYWZHYZWFQQ^QTXX making entities in an effort to focus on your Companyâ&#x20AC;&#x2122;s core competenceâ&#x20AC;&#x201D;that of the UWTĂ YFGQJUT\JWFSINSIZXYWNFQX^XYJRX business out of India and the power systems business in Indonesia. (TSXJVZJSYQ^\JĂ WXYXTQIYMJ(FSFINFS enterprise in Winnipeg in FY2016 for an enterprise value of Canadian $20 million, \TZSIIT\SZSUWTĂ YFGQJJSYNYNJXXZHMFXYMJ systems businesses in the US, Brazil and the UK, and entered into a binding agreement with First Reserve, a leading global private equity and infrastructure investor, for the sale of selected transmission and distribution businesses (T&D) abroad at an enterprise [FQZJTKžRNQQNTS7JLWJYYFGQ^IJXUNYJ extensions to the â&#x20AC;&#x2DC;long stop dateâ&#x20AC;&#x2122; the deal did not fructify as certain conditions UWJHJIJSYYTNYWJRFNSJIZSKZQĂ QQJI Therefore, your Board of Directors decided to terminate this transaction in December 2016.

In the meanwhile, efforts were on to Ă SIFXZNYFGQJGZ^JWKTWYMJ(TRUFS^¸X power automation business that worked under the umbrella of ZIV, an international company located at Bilbao in Spain. We were successful in this endeavour. In March 2017, we sold ZIV, along with its subsidiaries and related automation businesses in the UK, Ireland, France and India to Alfanar Electric Systems Co., Saudi Arabia, for an enterprise value of â&#x201A;Ź120 million, much of which was used to pare down international debt to safe levels. Simultaneously, we immediately rationalised our overseas cost structure in line with the business size and scale. Within India, too, we divested ourselves TKFSZSUWTĂ YFGQJ[JSYZWJ´SFRJQ^YMJ distribution franchise agreement with Maharashtra State Electricity Distribution Company Limited for Jalgaon, Maharashtra. Finally, at the time of my writing this letter to you, we have agreed the sale of our USA power transformer and distribution businesses to WEG of Brazil and we continue YTKTHZXTZWFYYJSYNTSYTĂ SINSLGZ^JWXKTW our other European assets. If all goes well, your Company will be back to its core competencyâ&#x20AC;&#x201D;that of producing XYFYJTKYMJFWYUT\JWFSINSIZXYWNFQX^XYJRX equipment out of India and Indonesia, and XZUUQ^NSLYMJXJUWTĂ YFGQ^YTGTYMITRJXYNH as well as growing regions of the world market. The restructuring strategy and refocusing has begun to pay dividends. CG has started UWTIZHNSLXNLSNĂ HFSYQ^GJYYJWWJXZQYX1JYRJ XMFWJXTRJTKYMJXJ\NYM^TZ4SF8YFSI alone basis for FY2017, CGâ&#x20AC;&#x2122;s:

â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Net sales and services grew by almost 12% to I­HWTWJ Operating EBIDTA grew by 38.66% to I­HWTWJ 3JYUWTà YKWTRHTSYNSZNSLTUJWFYNTSX swung from a loss of I­HWTWJNS +>YTFUWTà YTKI­HWTWJ 3JYUWTà YNSHQZINSLINXHTSYNSZJI operations, improved from a loss of I­HWTWJNS+>YTFUWTà Y I­HWTWJ

Though the consolidated results are still NSĂ&#x201A;ZJSHJIG^YMJWJQFYN[JQ^UTTWUJWKTWRFSHJ of the some of the overseas operations,

YMJWJNXST\FINXYNSHYZUYNHP+TWYMJUT\JW systems business at the consolidated level: â&#x20AC;˘ The unexecuted order book (UEOB) increased by almost 4% to I­HWTWJ â&#x20AC;˘ Revenue grew by 7.6% to I­HWTWJ â&#x20AC;˘ EBIDTA (including other income) rose by nearly 13% to I­HWTWJ â&#x20AC;˘ EBIT grew even higher at close to 17% to I384 crore. â&#x20AC;˘ The return on capital employed (ROCE) increased by 2.4 percentage points to 21.3%. The industrial systems business posted excellent results. â&#x20AC;˘ UEOB increased by 29.3% to I­HWTWJ â&#x20AC;˘ Revenue grew by 11.4% to I­HWTWJ â&#x20AC;˘ EBIDTA rose by nearly 2.7% to I­HWTWJ â&#x20AC;˘ EBIT grew higher rate at 12.7% to I­HWTWJ â&#x20AC;˘ ROCE increased by 2.2 percentage points to 16.4%. We are clearly on the right path. It is not for me to give a â&#x20AC;&#x2DC;forward lookingâ&#x20AC;&#x2122; statement about your Companyâ&#x20AC;&#x2122;s prospects in FY2018. But it is very clear that the restructuring and continued focus on operations has created FRTWJXZXYFNSFGQJĂ SFSHNFQFWHMNYJHYZWJ and that CG is better positioned to leverage business opportunities that come out of higher economic growth in both India and across South East Asia. If India grows at 7% or more in FY2018â&#x20AC;&#x201D;as many have so KTWJHFXYJI´FSI8TZYM*FXY&XNFHTSYNSZJX doing well, one ought to see a healthy growth in demand for power equipment, rotating machines, drives and railway traction equipment. I would like to place on record my appreciation for the support and guidance provided by your Independent Directors to the management in achieving this restructuring. We have good reasons to look forward to better times in the near future. Yours sincerely,

GAUTAM THAPAR Chairman

CHAIRMAN'S LETTER 11


GAUTAM THAPAR Chairman

K N NEELKANT CEO and Managing Director

MADHAV ACHARYA

BOARD OF DIRECTORS 12 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Executive Directorâ&#x20AC;&#x201D; Finance and CFO


J BALAKRISHNAN Non-Executive Director

B HARIHARAN Non-Executive Director

SANJAY LABROO Non-Executive Director

RAMNI NIRULA Non-Executive Director

OMKAR GOSWAMI Non-Executive Director

VALENTIN VON MASSOW Non-Executive Director

BOARD OF DIRECTORS 13


MANAGEMENT DISCUSSION AND ANALYSIS

14 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


CGL approached the Ministry of Corporate Affairs, Government of India, for a name change that would IKNA=??QN=PAHUNAĹ&#x192;A?PPDA KIL=JUÂ&#x2020;O change in status of becoming a pure power and industrial systems B2B player. Thus, the corporate entity is now called CG Power and Industrial Solutions Limited.

J1 crore is J10 million. FY2017 stands for à XHFQ^JFW³NJKWTR­&UWNQ­YT ­2FWHM­&SFQTLTZXQ^+>FSI TYMJWà XHFQ^JFWX

<NYMJKKJHYKWTR­4HYTGJW­(WTRUYTS Greaves Limited (CGL) completed the demerger of its erstwhile Consumer Products business into a separate company, namely Crompton Greaves Consumer Electricals Limited (CGCEL). Each shareholder of CGL was allotted one equity share of CGCEL for every equity share of CGL held as on YMJWJHTWIIFYJTK­2FWHM­+WTR ­2F^­YMJXMFWJXTK(,(*1\JWJ listed on the BSE Limited and the National Stock Exchange of India Limited (NSE). In addition, Avantha Holdings Limited, belonging to the promoter group and holding 34.38% of CGL, divested its entire shareholding in CGCEL. After that, CGCEL formed neither a part of CGL nor of the Avantha Group. Thus, CGL became a pure ''(TRUFS^KWTR4HYTGJWYMJ appointed date of the demerger. Given this context, CGL approached the Ministry of Corporate Affairs, Government of India, for a name change that would RTWJFHHZWFYJQ^WJĂ&#x201A;JHYYMJ(TRUFS^¸X change in status of becoming a pure power and industrial systems B2B player. To this effect, it sought approval of its Shareholders YMWTZLM5TXYFQ'FQQTYTS­/FSZFW^­ 4S­+JGWZFW^­YMJ7JLNXYWFWTK Companies, Mumbai, approved the name change to CG Power and Industrial Solutions 1NRNYJIFSINXXZJIFKWJXM(JWYNĂ HFYJTK Incorporation taking into account the new corporate name. Thus, the corporate entity is now called CG Power and Industrial Solutions Limited (â&#x20AC;&#x2DC;CGâ&#x20AC;&#x2122; or â&#x20AC;&#x2DC;the Companyâ&#x20AC;&#x2122;). It is a pure B2B enterprise spanning two major businesses. These are: i. Power transmission and distribution equipment and system solutions (or the Power Systems business unit), covering a wide span of differentiated products and XJW[NHJXKWTRZQYWFMNLM[TQYFLJ :-;MNLM

voltage (HV), medium voltage (MV) and low voltage (LV). ii. The Industrial Systems business unit, consisting of rotating machines (motors and alternators) across a wide spectrum of power and ratings, automated AC, DC and variable frequency drives and control systems as well as traction electronics and machines, signalling and coach products as well as integrated solutions for railway transportation. The third business segment, Automation solutions for electricity distribution, was largely run through CGâ&#x20AC;&#x2122;s international subsidiary, ZIV in Spain, or more formally, ZIV Aplicaciones y Tecnologia, S.L. ZIVâ&#x20AC;&#x201D;along with its subsidiaries and related automation businesses in the UK, Ireland, France and Indiaâ&#x20AC;&#x201D;was sold to Alfanar Electric LLC on ­2FWHM­HTSXJVZJSYYTYMJGNSINSL offer from Alfanar Electric Systems Co., Saudi Arabia, for an enterprise value of â&#x201A;Ź120 million. This is in line with CGâ&#x20AC;&#x2122;s overall debt reduction strategy. Proceeds of the sale have been used to reduce CGâ&#x20AC;&#x2122;s international debt, thus strengthening its consolidated balance sheet and increasing shareholder value. Customers of the B2B segments consist of major utilities and industries across the globeâ&#x20AC;&#x201D;in power generation, transmission, distribution and renewables, in oil and gas, cement, metals and mining, and in railways and the transportation sector. As mentioned earlier, CGâ&#x20AC;&#x2122;s offerings are built around its two business units (BUs): Power and Industrial Systems. Each BU is WJXUTSXNGQJKTWWJ[JSZJLWT\YMUWTĂ YFGNQNY^ FSIHFUNYFQJKĂ HNJSH^YMWTZLMXYWFYJLNH levers and business activities. These involve geographical expansion of markets and the manufacturing footprint, design, technology, supply chain, sales support, tendering

MANAGEMENT DISCUSSION AND ANALYSIS 15


It may be recalled that CG had voluntarily opted for adopting the Indian Accounting Standard, or Ind AS, with effect from ­&UWNQ­F^JFWGJKTWJNY\FXRFIJ mandatory. Under Ind AS, the reporting business entity has to meet the conditions prescribed by .SI&8\MNHMWJVZNWJXNYYTHQFXXNK^FSI XJUFWFYJQ^INXHQTXJYMJà SFSHNFQXTK i. continuing businesses and ii. those held for sale or discontinued operations. These are given below.

purpose vehicle (SPV) of First Reserve, a LQTGFQUWN[FYJJVZNY^à WRKTWYMJXFQJTKNYX transmission and distribution businesses in Indonesia, Hungary, Ireland, France, North America and Belgium at an enterprise [FQZJTK¾RNQQNTS)JXUNYJJ]YJSXNTSX of the Long Stop Date of the SPA, certain conditions precedent to the SPA remained ZSKZQà QQJIGJ^TSIYMJWJFXTSFGQJHTSYWTQ of the parties to the SPA. Therefore, the Board of Directors of CG decided not to pursue this transaction, and the SPA was YJWRNSFYJINS)JHJRGJW­(,HTSYNSZJX to explore alternative geography / product wise options of sale of its international power business, barring the operations in Indonesia. Hence, these still remain as held for sale or discontinued operations.

DISCONTINUED OPERATIONS

CONTINUING OPERATIONS

During FY2017, discontinued operations or businesses held for sale were as follows: 1. The power and distribution transformer and systems business at Mechelen, Belgium. 2. The power and distribution transformer business at Cavan, Ireland. 3. The power transformer business at Tapioszele, Hungary. 4. The switchgear business at Tapioszele, Hungary. 5. The power and distribution transformer business at Washington (Missouri), USA. 6. The transformer servicing businesses at Charleroi, Belgium, through CG Service Systems France SAS. 7. The power systems business in the UK. 8. ZIV, its subsidiaries as well as all related automation businesses in the UK, Ireland, France and India, for a part of FY2017. 9. The power systems and solutions business in the USA. 10. The distribution franchise agreement with Maharashtra State Electricity Distribution Company Limited for Jalgaon, Maharashtra. 11. CG Power Solutions Limited and Crompton Greaves Consumer Products Limited. 12. CG Power Solutions Saudi Arabia Ltd. 13. CG Power Systems Brazil Ltda.

Continuing operations for FY2017 were: 1. Power business in India. 2. Power business in Indonesia. 3. Power systems business in Indonesia. 4. Industrial systems business in India. 5. Drives and automation business in Sweden. 6. Rotating machines business in Tapioszele, Hungary. 7. The traction automation solution business in the New Jersey, USA.

and quotations, contract management, installation, testing and commissioning of the products and systems.

IND AS, CONTINUING AND DISCONTINUED OPERATIONS

During FY2016, CG along with its subsidiaries CG International BV and CG International Holdings Singapore PTE Ltd had entered into a Share Purchase Agreement (SPA) with Pauwels Spaco Limited, a special

16 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

FACILITIES OF THE CONTINUING BUSINESSES POWER SYSTEMS BU CGâ&#x20AC;&#x2122;s Power Systems BU offers an extensive portfolio of manufactured equipment ranging from high voltage transmission products to those needed for distribution, as well as integrated solutions for network RFSFLJRJSY.YXTUJWFYNTSXFWJHQFXXNĂ JIFX given below: 1. Products, which comprise Power Transformers, EHV Switchgears, MV Switchgears and Distribution Transformers. Facilities of the continuing businesses are at Kanjur Marg (Mumbai, Maharashtra), Malanpur and Mandideep (Madhya Pradesh), Nashik and Aurangabad (Maharashtra) and Bogor (Indonesia). 2. Systems and Solutions, which provide turnkey solutions and services for design, manufacture, supply, construction,

installation, testing, commissioning, and XJW[NHNSLTKQFWLJXHFQJTSXMTWJFSITKK shore, conventional and renewable energy projects. The continuing business operates out of Gurgaon (Haryana) and Jakarta (Indonesia).

INDUSTRIAL SYSTEMS BU The Industrial Systems BU provides equipment and services to convert electrical energy for industrial applications. It has four verticals: 1. Products, comprising high voltage (HV) RTYTWXWFSLNSLZUYT2< QT\[TQYFLJ 1;RTYTWXWFSLNSLZUYT2< KWFHYNTSFQ MTWXJUT\JW +-5RTYTWX INWJHYHZWWJSY )(RTYTWX &(LJSJWFYTWXZUYT2;& WFSLJFSI&(IWN[JXZUYT2< YWFHYNTS RFHMNSJXKTWWFNQ\F^YWFSXUTWYFYNTS FSI stamping products. It has facilities at Tapioszele (Hungary), Mandideep and Pithampur (Madhya Pradesh), Ahmednagar (Maharashtra) and Colvale and Kundaim (Goa). 2. Drives and Industrial Automation, which involves AC and DC drives and variable frequency drives. It has facilities at Helsingborg (Sweden) as well as at Mandideep (Madhya Pradesh). 3. Railways, which includes solutions based TSNSXZQFYJILFYJGNUTQFWYWFSXNXYTW .,'9 technology, traction electronics and traction machines for railway transportation and signalling, with facilities at Mandideep and Pithampur (Madhya Pradesh). 4. Services, for all the above products including the condition monitoring and training modules for maintenance.

BUSINESS PERFORMANCE, FY2017 CG: CONSOLIDATED FINANCIAL HIGHLIGHTS, FY2017

â&#x20AC;˘

â&#x20AC;˘

The unexecuted order book (UEOB) as on 31 March 2017 stood at I4,690 crore, which represented an increase of 7.9% over what it was a year earlier. Gross sales and income from operations was I6,120 crore. This was 9.4% higher YMFSYMJHTRUFWFGQJĂ LZWJTKYMJUWJ[NTZX year.


â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘ â&#x20AC;˘

â&#x20AC;˘

CGâ&#x20AC;&#x2122;s earnings before interest, depreciation, taxes, and amortisation (EBIDTA), including â&#x20AC;&#x2DC;other expensesâ&#x20AC;&#x2122; but without â&#x20AC;&#x2DC;other incomeâ&#x20AC;&#x2122;, was I470 crore in FY2017. This was 9.3% higher than the comparable number for the previous year. 5WTĂ YXGJKTWJYF]JX 5'9J]HQZINSL¡TYMJW incomeâ&#x20AC;&#x2122; reduced by 26% to I132 crore. PBT including â&#x20AC;&#x2DC;other incomeâ&#x20AC;&#x2122; but without exchange gain / loss and exceptional items was I201 crore in FY2017, versus I290 crore in the previous year. Including YMJXJFX\JQQFXYMJXMFWJTKUWTĂ YTW loss from joint ventures and associate companies, PBT for FY2017 was I­HWTWJ[JWXZXI180 crore in FY2016. 5WTĂ YFKYJWYF]JX 5&9KWTRHTSYNSZNSL TUJWFYNTSXNSHQZINSLXMFWJTKUWTĂ YTWQTXX in associates and minority interests was I110 crore in FY2017, versus IHWTWJNS the previous year. PAT from discontinued operations was I(601) crore in FY2017, compared to I HWTWJNS+> Overall PATâ&#x20AC;&#x201D;for continuing and discontinued operations taken togetherâ&#x20AC;&#x201D; was I(491) crore in FY2017, versus I ­HWTWJNSYMJUWJ[NTZX^JFW Earnings per share (EPS), basic, from both continuing and discontinued operations was I(7.83) in FY2017 compared to I(7.33) in the earlier year.

POWER SYSTEMS BU Power Systems is the Companyâ&#x20AC;&#x2122;s largest BU and focuses on power transmission, distribution, power solutions, setting up of integrated power systems and associated services businesses. It manufactures a wide range of power and distribution transformers, extra high voltage (EHV) and medium voltage (MV) circuit breakers, switchgears, EHV instrument transformers, lightning arrestors, isolators and vacuum interrupters. In addition, it offers turnkey solutions for transmission and distribution 9 )YMWTZLMXZGXYFYNTSUWTOJHYX engineering, procurement and construction *5(FX\JQQFXTYMJWJSIYTJSIHTSYWFHYX involving the entire value chainâ&#x20AC;&#x201D;solutions, design, products, procurement, construction, erection and servicing. A detailed list of CGâ&#x20AC;&#x2122;s Power Systems BU products, solutions and services as well as its associated facilities is given at the end of this Annual Report.

POWER SYSTEMS BU: CONSOLIDATED FINANCIAL PERFORMANCE The consolidated performance of CGâ&#x20AC;&#x2122;s Power Systems BU is given in Table 1 in this Report. â&#x20AC;˘ The unexecuted order book (UEOB) increased by 4% to I3,808 crore. â&#x20AC;˘ Revenue of CG Power grew by 7.6% to I3,739 crore. â&#x20AC;˘ EBIDTA (including other income) rose by 13% to IHWTWJ â&#x20AC;˘ EBIT grew at an even higher rate of 17% to I384 crore. â&#x20AC;˘ Despite a 3.6% increase in capital employed on account of necessary investments, the return on capital employed (ROCE) increased by 2.4 percentage points to 21.3% in FY2017. If there is a clear signal that one can get from Table 1 in this Report, it is that CGâ&#x20AC;&#x2122;s Power Systems BUâ&#x20AC;&#x2122;s continuing businesses have started generating better results. In FY2017, the rate of growth of EBIDTA was higher than YMFYTKWJ[JSZJ YMJWFYJTKLWT\YMTK*'.9 \FXMNLMJWYMFSYMFYTK*'.)9& FSIIJXUNYJ a rise in capital employed, the ROCE was up by 2.4 percentage points over the previous year, to 21.3%. Hopefully, this positive trend will continue in FY2018 and thereafter.

POWER SYSTEMS BUâ&#x20AC;&#x201D;KEY DEVELOPMENTS IN FY2017 The product lines for CG Power Systems BU are: power transformers, switchgears and distribution transformers. The Indian power transformer market is expected to continue growing, thanks to the demand by the Power Grid Corporation of India Limited (PGCIL), the National Thermal Power Corporation (NTPC) and some State Electricity Boards. Moreover, dedicated freight corridors of Indian Railways will create additional demand for trackside transformers. In distribution, under the Ujwal DISCOM Assurance Yojana (UDAY) scheme, the HJSYWFQLT[JWSRJSYNXYFPNSLT[JW TK YMJIJGYTKT[JWQJ[JWFLJIHFXMXYWFUUJI DISCOMs in various states, subject to these entities agreeing to adequately raise YMJUWNHJTKJQJHYWNHNY^XZUUQNJIYTYMJĂ SFQ consumer. This ought to clean the books of many DISCOMs and State Electricity Boards which, in turn, should create headroom to generate additional demand for distribution transformers.

A

GROSS REVENUE FROM MAIN BUSINESSES (I crore)

POWER

INDUSTRIAL

6000

4000

3000

2000

1000

Gross revenue

â&#x20AC;˘

FY 2016

FY 2017

Chart A plots the changes in gross revenue of the main businesses. â&#x20AC;˘ CGâ&#x20AC;&#x2122;s gross revenue from the Power Systems business increased by 7.6% between FY2017 and the previous year. â&#x20AC;˘ Gross revenue from the Industrial Systems business grew by 11.4%.

MANAGEMENT DISCUSSION AND ANALYSIS 17


01

CONSOLIDATED FINANCIAL PERFORMANCE OF CGâ&#x20AC;&#x2122;s POWER SYSTEMS BUSINESS (I crore)

CG POWER SYSTEMS BU

FY2016

FY2017

GROWTH (%)

Unexecuted Order Book (UEOB)

3,663

3,808

3.9%

Revenue

3,474

3,739

7.6%

403



12.8%

EBIDTA (Including other income) EBIT Capital Employed Return on Capital Employed (ROCE)

329

384

17%

1,743

1,807

3.6%

18.9%

21.3%

2.4 percentage points

Note: Figures have been re-grouped wherever necessary to make these comparable.

Power Transformers (PT) These are manufactured at CGâ&#x20AC;&#x2122;s facilities at T3 (Mandideep, near Bhopal), T1 (Kanjur Marg, Mumbai) and Bogor (Indonesia). The T3 facility at Mandideep remains .SINF¸XQJFINSLP;RFSZKFHYZWNSLUQFSY It manufactures power transformers and WJFHYTWXZUYTP;UQZXQTHTRTYN[J transformers. The key customers are PGCIL, NTPC, the Madhya Pradesh Power Transmission Company Limited (MPPTCL), the Bhakra Beas Management Board (BBMB), Larsen & Toubro (L&T) and some key XYFYJQJ[JQUT\JWYWFSXRNXXNTSHTWUTWFYNTSX In FY2017, T3 achieved record net sales of almost I442 crore. Keeping in view growing orders from Indian Railways, T3 created a dedicated facility for manufacturing railway transformers, and its new 30MVA 132kV transformer produced in this unit for the Delhi Metro Rail Corporation (DMRC) was successfully short circuit tested at the Central Power Research Institute (CPRI). It has also successfully commissioned a 1200kV transformer at PGCILâ&#x20AC;&#x2122;s experimental XZGXYFYNTSFY'NSF :YYFW5WFIJXM\MNHMNX ZSIJWĂ JQIYWNFQ9MNXNXUFWYNHZQFWQ^NRUTWYFSY for the future, as 1200kV transformers will come into play for electricity transmission along the national grids from the year 2022. The T1 facility at Kanjur Marg, Mumbai, had several successes. Among these are: â&#x20AC;˘ )JXNLSNSLFSIIJ[JQTUNSLF2;&P; transformer with ester oil for Siemens, which was supplied for the Delhi metro (DMRC). â&#x20AC;˘ )JXNLSNSLFSIIJ[JQTUNSLFXNSLQJUMFXJ 33.3MVA, 400kV coupling transformers for PGCILâ&#x20AC;&#x2122;s Statcom Project at the NP Kunta :QYWF2JLF8TQFW5FWPNSYMJINXYWNHYTK Ananthapur in Andhra Pradesh.

18 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

â&#x20AC;˘

â&#x20AC;˘

Successfully short circuit tested i.F2;&P;LJSJWFYTWYWFSXKTWRJW at KEMA (Netherlands) for NTPC Ramagundam, and ii. F2;&P; transformer at the CPRI for the DMRC. Successfully commissioned 11 sites in FY2017 for PGCIL as a part of its RT2 Project.

9MJXYFYJTKYMJFWYUQFSYFY'TLTW (Indonesia) manufactures 20MVA to 300MVA, P;YTP;YMWJJUMFXJFSI2;& P;XNSLQJUMFXJUT\JWYWFSXKTWRJWX Its key customers are Perusahaan Listrik 3JLFWF 513.SITSJXNFFLT[JWSRJSY owned corporation that has monopoly over JQJHYWNHNY^INXYWNGZYNTSFHWTXXYMJFWHMNUJQFLT  9WFSXUT\JW3J\?JFQFSI FSI2JWFQHT Philippines. In addition, the facility at Jakarta, Indonesia, manufactures and assembles &.8XZGXYFYNTSXZUYTP;RTGNQJXZG XYFYNTSXZUYT2;&P;FX\JQQFX,.8 XZGXYFYNTSXZUYTP;´QFWLJQ^KTW513 but also for Malaysia. CG also has a joint venture with PLN to manufacture switchgears in Indonesia. This is still at a project stage. The Indonesian operations had several successes in FY2017, some of which were: â&#x20AC;˘ Highest ever order intake for power transformers of US$142 million. â&#x20AC;˘ Largest ever open book order from PLN of :8 RNQQNTSTKUT\JWYWFSXKTWRJWX aggregating 7400MVA. â&#x20AC;˘ Achieved a breakthrough in the power generation segment with an order intake of US$8 million. â&#x20AC;˘ 4WIJWXKTWRTGNQJXZGXYFYNTSXTK :8 ­RNQQNTS

Distribution Transformers (DT) After several years of making losses, the T2 facility at Malanpur turned around in FY2017 with an EBIDTA of 7.3% to sales. It achieved highest ever order input of I274 crore, and received its largest ever single order of IHWTWJKWTR,WJJSHT -^IJWFGFIKTW ZSNYXTK2;&P;KTWXTQFWJSJWL^ applications. Switchgears (,MFXKZQQĂ&#x201A;JILJIJ]YWFMNLM[TQYFLJ *-; and medium voltage (MV) switchgear plants NS.SINFXTRJTK\MNHMHTRRFSIXNLSNĂ HFSY leadership position in the country. Its facilities in Ambad (near Nashik, Maharashtra) and Aurangabad (Maharashtra) manufacture: air insulated (AIS) and gas insulated (GIS) *-;X\NYHMLJFWX 2;X\NYHMLJFWX [FHZZR NSYJWWZUYJWX NSXYWZRJSYYWFSXKTWRJWX FSI distribution protection and automation equipment. The Ambad facility produces instrument transformers, gas and vacuum circuit breakers, lightning arrestors, GIS switchgears FSIJQJHYWTSNHSZRJWNHFQWJQF^X \MNQJ the Aurangabad unit manufactures vacuum interrupters, vacuum contactors and instrument transformers. The major customers for CGâ&#x20AC;&#x2122;s switchgears are PGCIL, the Nuclear Power Corporation of .SINF1NRNYJI 35(.1395(XYFYJQJ[JQ transmission and distribution Utilities, ANDE (Paraguay), ENEL (Italy), TNB (Malaysia), KEPCO (Korea), SSI (USA) and KPLC (Kenya), among others. In FY2017, the total sales of CGâ&#x20AC;&#x2122;s switchgear facilities was IHWTWJTK which I221 crore constituted exports. In India, CGâ&#x20AC;&#x2122;s switchgear products accounted for almost 27% of the market. The business


CGâ&#x20AC;&#x2122;s Switchgear products accounted for almost 27% of the market in India

MANAGEMENT DISCUSSION AND ANALYSIS 19


For the railways business, FY2017 saw CG achieving its highest ever order input of almost I625 crore,

earned an EBITDA margin of 11.4% and an ROCE of 23.9%. There were several key achievements, such as:

â&#x20AC;˘

representing a growth of 66% over the previous year. It also recorded

â&#x20AC;˘

its highest ever sales of almost I436 crore, a 22% growth over the last year. It was the market leader

â&#x20AC;˘

with 52% share in electromechanical signalling, relays and point machines.

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

20 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Indigenously developed and commissioned capacitor voltage transformers (CVTs) and surge arresters for YMJP;J]UJWNRJSYFQXZGXYFYNTSXJY up by NTPC at Bina (Uttar Pradesh). Set up and commissioned 108 current transformers (CTs) at a single location, SFRJQ^YMJ5FQQF[FIN 9FRNQ3FIZXZG station, for the Tamil Nadu Transmission Corporation (TANTRANSCO). Manufactured and commissioned P;LFXHNWHZNYGWJFPJWXKTW5,(.1FY Jabalpur (Madhya Pradesh) and Champa (Chhattisgarh). Designed and manufactured control switching devices, which has been approved by PGCIL and other YWFSXRNXXNTSXYFYJQJ[JQUT\JW transmission companies, and commissioned across several locations. Produced, according to global standards, 36kV medium voltage GIS switchgears KTWWJSJ\FGQJJSJWL^YMJĂ WXYTKNYXPNSI to be manufactured in India. These are XUJHNFQQ^IJXNLSJIYTĂ YFYYMJGFXJTK wind turbines, and have been approved by Gamesa of Spain. (WJFYJIRNIRTZSYJI[FHZZRHNWHZNY breaker (VCB) panels for exportsâ&#x20AC;&#x201D;and sold these to Paraguay, Indonesia, Sierra Leone and in Europe. Designed and manufactured a 60 unit panel switchboard of 7.2kV and 44kA for the Steel Authority of India Limitedâ&#x20AC;&#x2122;s Durgapur Steel Plant with MECON (Ranchi) as the consultant. (TRRNXXNTSJIP;YTP;,.8 switchgears for the Himachal Pradesh SEB (at Shimla), the Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) at Allahabad and Ghaziabad, and the Haryana Vidyut Prasan Nigam Limited (HVPNL) at Gurugram. 7JHJN[JIYMJĂ WXY,.8J]UTWYTWIJWXKWTR Vietnam and Ukraine. )J[JQTUJIFSIXJHZWJIHJWYNĂ HFYNTSKTWF P;,.8X\NYHMLJFWFSIWJHJN[JIYMJ Ă WXYTWIJWKTWĂ [JGF^XKWTR:559(1 Manufactured 72kV dead tank breakers, for which orders were secured from Latin America and the Caribbean.

Engineering Projects Division (EPD) EPDâ&#x20AC;&#x2122;s offerings include: â&#x20AC;˘ 9ZWSPJ^&.8XZGXYFYNTSXTKP;P; FSIP; â&#x20AC;˘ 9ZWSPJ^,.8XZGXYFYNTSXKWTRP;YT 400kV. â&#x20AC;˘ Pure installation and commissioning of projects. Over the recent past, EPD made losses on account of site completion issues that lead to costs overruns. Most of these were due to external factors beyond CGâ&#x20AC;&#x2122;s control. CGâ&#x20AC;&#x2122;s present focus is on completing the projects FYMFSI\MNHM\NQQFQQGJITSJG^+>  and only taking up such projects that insulate the Company from potential losses and liquidated damages. The Company is evaluating some key EPD projects in association with various state utilities.

INDUSTRIAL SYSTEMS BU CGâ&#x20AC;&#x2122;s Industrial Systems has facilities located at Mandideep and Pithampur (Madhya Pradesh), Ahmednagar (Maharashtra), Colvale and Kundaim (Goa) and Tapioszele (Hungary). The business unit manufactures the following types of products: â&#x20AC;˘ High voltage (HV) motors. â&#x20AC;˘ Low voltage (LV) motors. â&#x20AC;˘ Fractional horse power (FHP) motors. â&#x20AC;˘ Direct current (DC) motors. â&#x20AC;˘ AC and DC drives. â&#x20AC;˘ AC generators (LV and HV). â&#x20AC;˘ Variable frequency drives and solutions GFXJITSNSXZQFYJILFYJGNUTQFWYWFSXNXYTW .,'9YJHMSTQTL^ XTKYXYFWYJWXFSI XMFKYUT\JWRTSNYTWX FSIWTYFW^MJFY exchangers with switch reluctance motors for saving energy. â&#x20AC;˘ Traction electronics and traction machines for railway transportation. â&#x20AC;˘ Railway signalling equipment. â&#x20AC;˘ Stampings. Table 2LN[JXYMJĂ SFSHNFQUJWKTWRFSHJTK the Industrial Systems BU over the last two years. As is evident, this BU has done well over the last two years. â&#x20AC;˘ The unexecuted order book (UEOB) increased by 29.3% to I882 crore. â&#x20AC;˘ Revenue of CG Industrial grew by 11.4% to I2,361 crore. â&#x20AC;˘ EBIDTA (including other income) rose by 2.7% to I218 crore.


02

CONSOLIDATED FINANCIAL PERFORMANCE OF THE CGâ&#x20AC;&#x2122;s INDUSTRIAL SYSTEMS BUSINESS (I crore)

CG INDUSTRIAL SYSTEMS BU

FY2016

FY2017

GROWTH (%)

682

882

29.3%

2,119

2,361

11.4%

EBIDTA (Including other income)

212

218

2.7%

EBIT

139



12.7%

Unexecuted Order Book (UEOB) Revenue

Capital Employed Return on Capital Employed (ROCE)

â&#x20AC;˘ â&#x20AC;˘

EBIT grew at a higher rate of 12.7% to IHWTWJ The return on capital employed (ROCE) increased by 2.2 percentage points to 16.4%.

INDUSTRIAL SYSTEMS BU: KEY DEVELOPMENTS IN FY2017: Motors (LVRM) â&#x20AC;˘ Revenue from low tension (LT) motors crossed the I1,000 crore mark. â&#x20AC;˘ The market share of CGâ&#x20AC;&#x2122;s AC motors in India increased by 2 percentage points in one year, and now stands at over 38%. â&#x20AC;˘ While the overall market for FHP motors IJLWJ\G^ (,¸XUWTIZHYXLWJ\G^  [NXl[NX+> â&#x20AC;˘ 5WTIZHJIP;&QFWLJFQYJWSFYTWFĂ WXY for CG and for India. â&#x20AC;˘ Manufactured large AC motors in India of FKWFRJXN_JTKRR â&#x20AC;˘ Manufactured 90kW motors for NPCIL that are designed to operate in high temperature radiation zones. â&#x20AC;˘ The motors business has a large collection of offerings, some of which are: (i) totally JSHQTXJIKFSHTTQJI 9*+(.*Ă&#x201A;FRJ proof (FLP) motors of frame size from 80 to 280mm, 2/4/6 pole, with a range TKP<YTP< (ii) TEFC NEMA 5WJRNZRRTYTWXTKYTRRKWFRJ ZUYT-5 (iii) TEFC IE1 motors of FSIKWFRJ\NYMFWFSLJTK P<YTP<ZXNSLUTQJX  (iv) sun protected drip proof (SPDP) XNQNHTSHTSYWTQQJIWJHYNĂ JWFSIX\NYHMJI WJQZHYFSHJRTYTWXTKRRYTRR KWFRJ\NYMFWFSLJTKP<YTP< NSUTQJX (v) AC generators, RRKWFRJP;&YTP;&UTQJX FSIRRKWFRJP;&UTQJX â&#x20AC;˘ In FY2018, the motors business will be in a position to offer even newer product, such

â&#x20AC;˘

977



(2.2%)

14.2%

16.4%

2.2 percentage points

as: (i) 9*+(.* 8ZUJW5WJRNZR*KĂ HNJSH^ motors of 132mm to 160mm frame, with a WFSLJTKP<YTP<RTZSYJITSKTZW UTQJX (ii) TEFC IE1 motors with a frame XN_JTKRRP<UTQJX 

Modernisation Works (DMW) at Patiala. FY2017 also saw CG securing 100% of the tender quantity for an order worth I­HWTWJKWTR)2<FSIFSTYMJWKTW I­HWTWJKWTRYMJ.SYJLWFQ(TFHM+FHYTW^

(iii):1(JWYNĂ JIXFKJFWJFRTYTWXTKKWFRJ XN_JXWFSLNSLKWTRRRYTRRFSI compliant with the IEC / NEMA IE1, IE2, .*XYFSIFWIX (iv) FLP motors of 400mm KWFRJP<FSIUTQJX (v) smoke extraction motors of 80mm to 200mm KWFRJWFSLNSLGJY\JJSP<FSI P< (vi) FLP brake motors of 90mm to RRKWFRJGJY\JJSP<FSIP<  (vii) QFWLJ&(LJSJWFYTWXTKRRKWFRJ KTZWUTQJXIJQN[JWNSLP;& FSI (viii))(RTYTWXZUYTRRKWFRJKTW heavy duty applications in steel mills. In FY2018, the focus will also be in entering the construction market with liquid cooled motors, line start permanent magnet motors and gearless traction motors for lifts. In addition, motors will be ungraded where necessary to the JKĂ HNJSH^QJ[JQXTK.*.*FSI.*KTW UTQJX.*KTWYMJ:SNYWFSLJFSI build drive mounted intelligent motors for different applications.

in Chennai. The business also received three orders of above I40 crore each from CLW. (,\FXYMJĂ WXYHTRUFS^NS.SINFYT develop and integrate the â&#x20AC;&#x2DC;under slungâ&#x20AC;&#x2122; propulsion system for Indian Railwayâ&#x20AC;&#x2122;s ]-5INJXJQJQJHYWNHYT\JWHFWFSI it was the second company in India to develop and integrate the complete UWTUZQXNTSX^XYJRKTW-5&(&( diesel electric multiple unit. (,¸XWFNQ\F^XGZXNSJXXJSOT^XXNLSNĂ HFSY market shares. In FY2017, it accounted for 21% share of the total propulsion GZXNSJXX  XMFWJKTWJQJHYWTSNHX FSIHTSYWTQX  XMFWJKTWYWFHYNTS FQYJWSFYTWX  XMFWJKTWYWFHYNTSRTYTWX  FSI XMFWJKTWYWFHYNTSYWFSXKTWRJWX

RAILWAYS

â&#x20AC;˘

For the railways business, FY2017 saw CG achieving its highest ever order input of almost IHWTWJWJUWJXJSYNSLF growth of 66% over the previous year. It also recorded its highest ever sales of almost I436 crore, a 22% growth over the last year. It was the market leader \NYM XMFWJNSJQJHYWTRJHMFSNHFQ signalling, relays and point machines. It accounted for 18% to 20% market share with the Chittaranjan Locomotive Works (CLW), the Diesel Locomotive Works (DLW) at Varanasi and the Diesel Loco

â&#x20AC;˘

â&#x20AC;˘

HUMAN RESOURCES (HR) In FY2017, HR focused on top level leadership transitions while successfully managing people issues arising out of job rotation, retirements and changes on account of the divestment strategy for global businesses. We continued promoting internal talent to occupy such vacant leadership as SJJIJIYTGJĂ QQJI2FS^XZHMQJFIJWX\JWJ provided coaches to help them succeed in their new roles. HR played a critical role in rationalising the US and UK Power Solutions businesses and in transitioning CGâ&#x20AC;&#x2122;s organisation structure from matrix to geography based. The Company rolled out an employee engagement survey branded as Drishtikon to understand â&#x20AC;&#x2DC;what employees feel is working wellâ&#x20AC;&#x2122; or â&#x20AC;&#x2DC;what could be improvedâ&#x20AC;&#x2122;. It covered

MANAGEMENT DISCUSSION AND ANALYSIS 21


CG has full-fledged Extra High Voltage (EHV) and Medium Voltage (MV) switchgear plants in India which commands significant leadership position in the country

22 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


JRUQT^JJX´GTYM\MNYJFSIGQZJ collar. The response rate was over 93%. The survey results indicated that 61% of white collar employees considered CG as a â&#x20AC;&#x2DC;great place to workâ&#x20AC;&#x2122;. While creditable, we have leveraged Drishtikon to start action planning workshops across all units to arrive at what set of actions at the organisation, unit and managerial levels would be needed to further enhance employee engagementâ&#x20AC;&#x201D;so that CG gets recognised as one of the best employers in India. In our journey to strengthen CG leadership effectiveness, we covered our 89 leaders through a Leadership Grid intervention programme. This deepens leadership capability by helping participants understand how their leadership behaviour impacts others. This was carried out in collaboration with Grid International to help CG develop FSIĂ SJYZSJHWNYNHFQQJFIJWXMNUWJQFYNTSXMNU such as Critique, Inquiry, Decision Making, .SNYNFYN[J&I[THFH^(TSĂ&#x201A;NHY7JXTQZYNTSFSI Resilience. The programme also helped RFSFLJWXYTXJJHTSĂ&#x201A;NHYFXFUTXNYN[JXTZWHJ for productive energy and to use genuine candour by focusing on â&#x20AC;&#x2DC;Whatâ&#x20AC;&#x2122;s rightâ&#x20AC;&#x2122; rather than â&#x20AC;&#x2DC;Whoâ&#x20AC;&#x2122;s rightâ&#x20AC;&#x2122;. Follow up sessions were organised to help implement the learnings and to cascade these across the organisation. During the year, a Leadership Summit was organised for top leaders. This focused on a holistic understanding of, and the desired behaviour patterns that make for, good leadership. A 360° feedback exercise received excellent response and provided valuable insights to each of leader and to entire leadership team. We continued our practice of the learning calendar and covered over 800 employees through various learning interventions. We XNLSNĂ HFSYQ^NRUWT[JIYMJVZFQNY^HTSYJSY FSIYNRJQNSJXXTKLTFQXJYYNSLUJWKTWRFSHJ reviews, coaching and feedback process. We strengthened our Performance Management Process (branded as PRIDE which stands for Personal Responsibility In Delivering Excellence) to align rewards with performance. We rolled out Sales Incentive Program (SIP) to drive frontline sales performance. To strengthen the capability of our people managers and enhance employee engagement, we continued LEAP (which

stands for LJFWSESLFLJAHHJQJWFYJ Perform) in partnership with Great Places to Work across our cluster of plants in Madhya Pradesh. The assessment of people managers helped in identifying focused actions for building team alignment and team culture. Industrial relations at all plants and establishments in India remained cordial throughout FY2017. The CG Production System (CGPS) has GJJSFXNLSNĂ HFSYIWN[JWNSHTSYWNGZYNSL towards continuous productivity improvement in CG since its inception. Work measurement and practicing the best operational excellence practices are the bedrock of CGPS with the principle of 5)(& 5QFS)T(MJHP&HYGJNSLFYYMJ core. In FY2017, we recalibrated our CGPS parameters to drive productivity at some key plantsâ&#x20AC;&#x201D;namely, the transformer plants in Mandideep and Malanpur, and the LVRM :SNYFY&MRJISFLFW9MNXMFXQJIYT encouraging results. <JWJHWZNYJI,WFIZFYJ*SLNSJJW Trainees from NITs and Government *SLNSJJWNSL(TQQJLJXYTGZNQIFKZYZWJWJFI^ technical talent pipeline.

CG is committed to minimise the adverse impact on the environment, health and safety at workplace. It does so by protecting and enhancing the well-being of its employees, visitors and partners.

ENVIRONMENT, HEALTH AND SAFETY (EHS) CG is committed to minimise the adverse impact on the environment, health and safety at workplace. It does so by protecting and JSMFSHNSLYMJ\JQQGJNSLTKNYXJRUQT^JJX visitors and partners. The Companyâ&#x20AC;&#x2122;s EHS management system, programmes and policies were enhanced in FY2017. All CG manufacturing units have maintained their .84FSI48-&8HJWYNĂ HFYNTSX Senior managementâ&#x20AC;&#x2122;s EHS commitment \FXWJĂ&#x201A;JHYJINSYMJZUIFYNSLTK(,¸X Corporate EHS Policy and introducing EHS Cardinal Rules. These new standards and expectations were communicated to relevant JRUQT^JJX[NF\JGNSFWX.SFIINYNTSGN monthly regional EHS network conference calls were used for EHS knowledge sharing, best practices and lesson learnt across businesses and regions. Individual leaders took up one mandatory EHS goal in their annual appraisal system and all units set their annual targets towards meeting the EHS KPIs. Every individual unitâ&#x20AC;&#x2122;s EHS performance against set target was

MANAGEMENT DISCUSSION AND ANALYSIS 23


analysed by using an online monthly EHS Balanced Scorecard. EHS audit processes were revamped. These now focus more on actual EHS implementation and performance, rather than documentation. Corrective actions arising out of such audits were captured and tracked for closure through an online Event Reporting 8^XYJR *78UTWYFQ4[JW(TWWJHYN[J actions were reported and tracked in ERS, of which 4,870 are closed on time.

CORPORATE SOCIAL RESPONSIBILITY (CSR) CGâ&#x20AC;&#x2122;s work on CSR is appended with the Directorsâ&#x20AC;&#x2122; Report.

FINANCIAL PERFORMANCE 9MNXXJHYNTSGJLNSX\NYM(,¸XYFSI alone results, after which it moves on the HTSXTQNIFYJIà SFSHNFQXKTWYMJ(TRUFS^9MJ results have to be looked at in terms of Ind AS and the concept of continuing businesses and to be sold or discontinued operations.

CG: STAND-ALONE FINANCIAL PERFORMANCE 8YFSIFQTSJWJXZQYXTK(,KTWYMJ^JFW ended 31 March 2017 and 2016 are given in Table 3. â&#x20AC;˘ Gross sales, or revenue from operations increased by 12.7% to I4,761 crore in FY2017. Net sales and services increased by 11.7% to IHWTWJ â&#x20AC;˘ Operating EBIDTA grew by 38.66% to I­HWTWJ â&#x20AC;˘ 'JHFZXJTKFXNLSNĂ HFSYNSHWJFXJNS Ă SFSHJHTXYXNS+>TUJWFYNSL5'9 reduced by 34.8% to IHWTWJ.SHQZINSL â&#x20AC;&#x2DC;other incomeâ&#x20AC;&#x2122;, PBT reduced by 17.9% to IHWTWJ9MJNSHWJFXJNSĂ SFSHJ cost was on account of larger loans taken NS.SINFYTĂ SFSHJYMJQTXXJXTKXTRJ international operations. â&#x20AC;˘ 3JYUWTĂ YKWTRHTSYNSZNSLTUJWFYNTSX increased from a loss of I1,184 crore NS+>YTFUWTĂ YTKIHWTWJNS FY2017. â&#x20AC;˘ 3JYUWTĂ YNSHQZINSLINXHTSYNSZJI operations, improved from a loss of I1,099 crore in FY2016 to IHWTWJNS+> Table 4XMT\XYMJPJ^WFYNTX UWTĂ YFGNQNY^ FXXJYXJKĂ HNJSH^FSIQJ[JWFLJWFYNTXTKYMJ entity for FY2017 and FY2016.

24 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

CG: CONSOLIDATED FINANCIAL PERFORMANCE Table 5 in this Report gives the consolidated performance of CG, while Table 6 gives the key ratios. â&#x20AC;˘ Net sales and services: In rupees, it grew by 8.4% to IHWTWJNS +>.S:8 NYNSHWJFXJIG^ YT :8 ­RNQQNTS â&#x20AC;˘ Operating EBIDTA increased by 9.3% in rupees to IHWTWJ FSIG^ YT US$70 million. â&#x20AC;˘ PBT including other income, but before exceptional items and exchange gains or loss, decreased by 30.7% to I201 crore in +> FSIG^ YT:8 RNQQNTS 9MNX\FXTSFHHTZSYTKĂ SFSHJHTXYX which increased from I80 crore in FY2016 to I188 crore in FY2017. As mentioned JFWQNJWNSHWJFXJNSĂ SFSHJHTXYXNS+> was on account of additional loans taken in India to meet the large losses incurred in some of the international subsidiaries. â&#x20AC;˘ 3JYUWTĂ YKWTRHTSYNSZNSLTUJWFYNTSX (after minority interests) reduced by 4.4% I­HWTWJTW:8 ­RNQQNTS â&#x20AC;˘ After taking into account net losses from discontinued operations amounting to I601 crore, or US$89 million, over net loss for FY2017 was I­HWTWJTW :8 ­RNQQNTS

RISK MANAGEMENT CG deploys a well formulated risk management framework. This is based upon FYMWJJYNJWJIFUUWTFHMJSHTRUFXXNSL (i) enterprise risks, (ii) process risks, and (iii) compliance risks. *SYJWUWNXJWNXPNIJSYNĂ HFYNTSFSIRNYNLFYNTS NSNYNFYN[JXFWJRFSFLJIYMWTZLMFSTSLTNSL action agenda between the corporate risk department and each of the businesses, as well as for the Company as a whole. The coverage extends to all key business exposures as well as to lost opportunitiesâ&#x20AC;&#x201D; GTYMNSYJWSFQFSIJ]YJWSFQ´YMFYFWJNIJSYNĂ JI with the businesses. After getting a measure of each such enterprise risk, the corporate risk department tracks the mitigation actions. Process risk management involves assurances by the Companyâ&#x20AC;&#x2122;s internal audit department regarding the effectiveness TKGZXNSJXXFSIĂ SFSHNFQHTSYWTQXFSI processes in all key activities across the various businesses.

Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations in every country, with a reporting UWTHJXXYMFYĂ&#x201A;T\XZU\FWIXKWTRYMJ accountable business line executives to CGâ&#x20AC;&#x2122;s Ă IZHNFW^7NXPFSI&ZINY(TRRNYYJJ 7&( and then to the Board of Directors. The outcomes of business review meetings conducted by management and internal audit regarding processes and their compliance, as well as observations of the RAC and the Board of Directors are incorporated to capture new risks and update the existing ones. All three dimensions of CGâ&#x20AC;&#x2122;s Risk Management framework are reviewed annually for their relevance and RTINĂ HFYNTSX9MJGZXNSJXXJXFSI internal audit make regular presentations to the RAC for detailed review. The risk management process, including its tracking FSIFIMJWJSHJNXXZGXYFSYNFQQ^JJSFGQJI for greater consistency and better reporting capabilities.

INTERNAL CONTROLS AND THEIR ADEQUACY CG believes that a strong internal controls framework is essential to its businesses. It, therefore, has an effective internal control system to conduct audits of various divisions, XFQJXTKĂ HJXHTWUTWFYJMJFIVZFWYJWXFSI overseas operations. The internal audit team focuses primarily on operational and systems audits that monitor compliance with the IJĂ SJIFZYMTWNY^IJQJLFYNTSRFYWN]TKYMJ Company. Annual internal audit plan covers key areas TKTUJWFYNTSX9MNXNX[JYYJIG^'TFWIQJ[JQ RAC, which is updated every quarterâ&#x20AC;&#x201D;and occasionally between successive quartersâ&#x20AC;&#x201D; TKYMJXNLSNĂ HFSYNSYJWSFQFZINYTGXJW[FYNTSX compliance with statutes, risk management and control systems. The RAC assesses the adequacy and effectiveness of inputs given by internal auditor and suggests improvement for strengthening internal controls from time to time. CGâ&#x20AC;&#x2122;s internal controls have been designed to provide a reasonable assurance with regard to maintaining of proper internal controls, monitoring of operations, protecting assets from unauthorised use or losses, compliances with regulations for ensuring


03

CGâ&#x20AC;&#x2122;s STAND-ALONE PERFORMANCE (I crore)

YEAR ENDED 31 MARCH Gross Revenue from operations

FY2016

FY2017



4,761

324



Net sales and services

3,901



Cost of materials consumed

2,822

3,202

*RUQT^JJGJSJĂ YXJ]UJSXJ

363



Other expenses

491

484

EBIDTA excluding OI



312

Other income (OI)

226

200

EBIDTA Including OI





Finance costs

39

164

Depreciation and amortisation

99

91

PBT excluding OI

87



PBT Including OI

313



Exceptional items net of income / (loss)



(100)

5WTĂ YFKYJWJ]HJUYNTSFQNYJRX

(1,139)



Less: excise duty

Less: Tax expenses Current tax





Deferred tax (net)

(60)

(26)

(1,184)



146

(33)

3JY5WTĂ Y QTXXKTWYMJ^JFWKWTRHTSYNSZNSLTUJWFYNTSX 5WTĂ Y QTXXKWTRINXHTSYNSZJITUJWFYNTSXGJKTWJYF] Tax expense on discontinued operations

61



3JYUWTĂ Y QTXXKWTRINXHTSYNSZJITUJWFYNTSXFKYJWYF]



(33)

3JYUWTĂ Y QTXXKTWYMJ^JFW

(1,099)



Earnings Per Share Continuing Operations (Basic And Diluted) (In I)

(18.89)



1.36



FY2016

FY2017

Earnings Per Share Discontinued Operations (Basic And Diluted) (In I) (Face Value Of Equity Share of I2 each)

04

CGâ&#x20AC;&#x2122;s STAND-ALONE PERFORMANCE, KEY RATIOS

YEAR ENDED 31 MARCH 5WTĂ YFGNQNY^7FYNTX EBIDTA excluding OI / Gross Sales from continuing operations



6.6%

EBIDTA including OI / Gross Sales from continuing operations

10.7%

10.8%

PBT / Gross Sales from continuing operations

(27%)

3.3%

(26.6%)

3.0%

74(* FY^JFWJSIHFUNYFQJRUQT^JITSHTSYNSZNSLTUJWFYNTSX





Cash ROCE from continuing operations

9.6%

9.2%

RONW on total operations

*58TSYMJGFXNXTKYTYFQUWTĂ YXKWTRHTSYNSZNSLTUJWFYNTSX .SI per Share)

(18.89)



1.36



*58TSYMJGFXNXTKYTYFQUWTĂ YX .SI per Share)



1.99

Cash EPS from continuing operations (In I per Share)

(18.28)



Long Term Debt To Equity

0.0

0.1

Interest Coverage Ratio

NA



Gross Sales To Gross Working Capital (times)

0.9

0.9

Gross Sales To Net Working Capital (times)

1.9

1.6

*58TSYMJGFXNXTKYTYFQUWTĂ YXKWTRINXHTSYNSZJITUJWFYNTSX .SI per Share)

Leverage Ratios

&XXJYX*KĂ HNJSH^

MANAGEMENT DISCUSSION AND ANALYSIS 25


05

CGâ&#x20AC;&#x2122;s CONSOLIDATED FINANCIAL PERFORMANCE

YEAR ENDED 31 MARCH

FY2016

FY2017

Kcrore

US$ million

Kcrore

US$ million





6,120

912

326



407

61

Net Sales and Services









Cost of raw materials and components consumed and construction material



Gross sales and services Less: excise duty

3,612



4,014

*RUQT^JJ'JSJĂ YX







80

Other Expenses

668

102

692

103

EBIDTA excluding OI

430

66

470

70

Other Income (OI)

112

17

69

10

EBIDTA Including OI



83



80

80

12

188

28

Depreciation and Amortisation

172

26



22

PBT excluding OI

178

28

132

20

5'9.SHQZINSL4. GJKTWJJ]HJUYNTSFQNYJRFSIXMFWJTKUWTĂ Y QTXXTKFXXTHNFYJXFSIOTNSY[JSYZWJ

290



201

30

(111)

(17)

(73)

(11)

Finance Costs

Exceptional Item 8MFWJTK5WTĂ Y 1TXXTKFXXTHNFYJXFSIOTNSY[JSYZWJ 5'9FKYJWJ]HJUYNTSFQNYJRFSIXMFWJTKUWTĂ Y QTXXTKFXXTHNFYJXFSIOTNSY[JSYZWJ

1

0

(1)

(0)

180

28

127

19

Less: Tax Expenses Current Tax

130

20

48

7

Deferred Tax

(64)

(10)

(31)

(4)

PAT (before Exceptional Item)





183

27

PAT (after Exceptional Item)

114

18

110

16

1

0

(0)

(0)



18

110

16

(492)



(612)

(91)

82

13

(11)

(2)

3JYUWTĂ Y QTXXKWTRINXHTSYNSZJITUJWFYNTSXFKYJWYF]



(88)

(601)

(89)

3JYUWTĂ Y QTXXKTWYMJUJWNTI^JFW



(70)

(491)

Minority Interest PAT after minority interest 5WTĂ Y QTXXKWTRINXHTSYNSZJITUJWFYNTSXGJKTWJYF] Less: Tax expense on discontinued operations



Exchange rate for US$1 as on respective year end dates

WJQNFGNQNY^TKĂ SFSHNFQWJUTWYNSL9MJ(TRUFS^ uses SAP as its key data and analytics toolâ&#x20AC;&#x201D;which has over the years considerably enhanced the internal control mechanism.

OUTLOOK As we have shared in the last two annual reports, over the last few years CG has suffered from the losses incurred by some of its international operations. Barring the entities in Indonesia and the US, most were affected by slowing demand, increasing HTXYXFSIIJHQNSNSLUWTĂ YXYMFYXTTSGJHFRJ increasing lossesâ&#x20AC;&#x201D;which had to be made LTTIG^WJLZQFWHFXMTZYĂ&#x201A;T\XKWTRYMJ parent Company. Hence, the Board of Directors unanimously favoured urgently cutting losses and

26 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

selling these businesses at reasonable [FQZJXYTKTHZXTS(,¸XUWTĂ YFGQJ core competenciesâ&#x20AC;&#x201D;that of producing transformers and industrial systems out of UWTĂ YFGQJUQFSYXNS.SINFFSI.SITSJXNFFSI of selling these both in India as well as to other parts of the world. To this end, CG divested itself of the power transformer business in Canada in +> XMZYIT\SZSJHTSTRNHHJSYWJX FSIUWTIZHYNTSZSNYX XZHHJXXKZQQ^XTQIYMJ automation business under ZIV to Alfanar *QJHYWNH11(TK8FZIN&WFGNFTS­2FWHM­ KTWFSJSYJWUWNXJ[FQZJTKžRNQQNTS FSI J]NYJIKWTRYMJQTXXRFPNSLINXYWNGZYNTS franchise business at Jalgaon, Maharashtra. As mentioned earlier in this chapter, in FY2016 upon the termination of the SPA

(73) 67.0978

with Pauwels Spaco Limited, an SPV of First Reserve, CG is actively exploring geography / product wise options for sale of its international power business. Hopefully, some of these will come to fruition in the course of FY2018. In the meanwhile, the Companyâ&#x20AC;&#x2122;s core businessesâ&#x20AC;&#x201D;power systems in India and Indonesia and its industrial systems business in Indiaâ&#x20AC;&#x201D;have grown and fared well in FY2017. Market indicators and the status of the unexecuted order books suggest that these will continue to perform robustly in FY2018. Moreover, adopting Ind AS has helped CG to create a cleaner balance sheet FSIMJSHJFRTWJXZXYFNSFGQJĂ SFSHNFQ architecture for ensuring future.


06

CGâ&#x20AC;&#x2122;s CONSOLIDATED FINANCIAL PERFORMANCE, KEY RATIOS

YEAR ENDED 31 MARCH

FY2016

FY2017

EBIDTA excluding OI / Gross sales from continuing operations

7.7%

7.7%

EBIDTA including OI / Gross sales from continuing operations

9.7%

8.8%

PBT / Gross sales

3.2%

2.1%

(10.0%)

(11.9%)

5WTĂ YFGNQNY^7FYNTX

RONW on total operations ROCE (terminal) of continuing operations Cash ROCE (terminal) of continuing operations

8.1%

8.1%

11.9%

11.2%

Per Shares Ratios *58TSYMJGFXNXTKYTYFQUWTĂ YXKWTRHTSYNSZNSLTUJWFYNTSX NSI Per share)

1.83



*58TSYMJGFXNXTKYTYFQUWTĂ YXKWTRINXHTSYNSZJITUJWFYNTSX NSI Per share)

(9.16)



9TYFQ*58TSYMJGFXNXTKYTYFQUWTĂ YXKWTRHTSYNSZNSLFSIINXHTSYNSZJITUJWFYNTSX NSI Per share)

(7.33)

(7.83)

Cash EPS from continuing operations (in I Per share)





Leverage Ratios Long Term debt to equity

0.1

0.1

Interest coverage ratio of continuing operations





Gross sales to gross working capital (times) of continuing operations

1.3

1.2

Gross sales to net working capital (times) of continuing operations

3.8

3.2

&XXJYX*KĂ HNJSH^7FYNTX

As mentioned last year, we are a leaner, more manageable and a more UWTĂ YFGQJJSYJWUWNXJ\NYMTZYQJXXTKYMJ burden of losses on account of some of our internationally located businesses. If India grows at least at 7% in FY2018â&#x20AC;&#x201D;as forecasted by many experts as well as the Reserve Bank of India and the IMFâ&#x20AC;&#x201D;and 8TZYM*FXY&XNFHTSYNSZJXLWT\NSLWTGZXYQ^ one ought to see a healthy growth in demand for power equipment, rotating machines, drives and railway traction equipment. If that were to happen, as is expected, the Company has good reason to believe that

the tide has turned, and can look forward to better times in the near future. K N NEELKANT CEO and Managing Director (DIN: 05122610) New Delhi, 26 May 2017

MANAGEMENT DISCUSSION AND ANALYSIS 27


TEN YEARSâ&#x20AC;&#x2122; HIGHLIGHTS

STAND-ALONE CONSOLIDATED

2017

2016#

2015

2014

2013

2012

2011

2010

2009

2008

(Year Ended 31 March in I crore)

EARNINGS

TOTAL INCOME

4290

7247

4940

9090



9469



10430

6901

11668

7624

12609

8064

14207









4962

6188

GROSS SALES AND SERVICE

4223

7181

4904

9031



9376

6277

10331









7994











4761

6120

NET SALES AND SERVICE

3876

6832

4611

8737



9141







11249



12094



13632

4230



3901







EBIDTA*



811

674



927

1371

1012

1443

771



648



687

761

331











PBT@

486



614

867

870

1189

927

1229

677







713



342



313

180



127

314

407

397



617

860

694

889



374

446

(36)



244



368

(1184)





110





73

73

81

81

141

141

90

90

77

77









1078

2733

1124

3083

1204

3099



3890

1424







1662

6429



7114

2186

4331



3139

NET BLOCK (INCL. CAPITAL WIP)







1379



1376

923

1941







3066

823





4237

1387

2677



1766

INVESTMENTS



93

266

167

688



782





786



791

826

299

1166

436

483

231

446

209

NET CURRENT ASSETS

361





969

620



1139

1603



1887





1810

1489

2840

2171

2282

1478

3006

1919

NET ASSETS EMPLOYED

1071

2097







3014





2802

4463

3173



3481





6711



4396

4819

3899

PAT **@

DIVIDEND PAY-OUT

WHAT THE COMPANY OWNED

GROSS BLOCK (INCL. CAPITAL WIP)

(*) EBIDTA = Earnings before Interest, Depreciation, Amortisation, Tax, Exceptional Items and including other income. (**) Profit for continuing business after Tax, Minority Interest and Share of Associate Companies for Consolidated Statement of Profit and Loss. (@) After exceptional items

28 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


2017

2016#

2015

2014

2013

2012

2011

2010

2009

2008 WHAT THE COMPANY OWED

BORROWINGS

88

842



718

27



13

470

8

1044

14

2029

31

2396

68

2092



 1334

1383

3484



3919

1627



1712

3874

1826



2163





7172





2227



2976 3716

SHARE CAPITAL

73

73

73

73

128

128

128

128

128

128

128

128

















RESERVES & SURPLUS



1229

1169



1637

2376

2176

3146



3483

2929

3433

3231



4490

4183

4003

4472

4074

3986

SHAREHOLDERSâ&#x20AC;&#x2122; FUNDS

931

1302

1242

1831





2304



2701

3611







3644



4308

4128



4199

4111

TANGIBLE NET WORTH***

931

1243

1242

1783





2304



2701





3393



3491



4308

4128



4199

4111

19.4

19.4

27.8



39.0





42.1



47.7







73.6

68.7



73.3

67.0



9.62





TOTAL LIABILITIES



NET WORTH OF THE COMPANY

RATIOS

BOOK VALUE PER SHARE (in H)



EARNINGS PER SHARE (in H)

4.89

6.34

6.19

8.73

13.40 10.82 

7.87







8.23

3.86



 (18.89) 1.83

CASH EARNINGS PER SHARE (in H)



8.36

7.08

11.22 10.74 16.62 11.91 17.13

8.96

9.34

8.17

1.30

10.01

8.67

6.60

 (18.28)  

CURRENT RATIO

1.28

1.29

1.38

1.30

1.39

1.36

1.70

1.48

1.88

1.46

1.87

1.39

1.86

1.28

2.96









1.61

DEBT EQUITY RATIO

0.09

0.68

0.04

0.4

0.02

0.2

0.00

0.09

0.00

0.17

0.00

0.44

0.00



0.00

0.30

0.00

0.13

0.12

0.12

EBIDTA / NET SALES (IN %)

14.3

11.9

14.6

12.1





17.0

14.4

11.9

7.6

9.1

3.8

9.1



7.8



11.6

10.3

11.8

9.4

RETURN ON TANGIBLE NET WORTH (IN %)## 33.7

32.7

32.0

31.4



34.3

30.1

27.1

18.7



14.6

(1.1)



7.0

12.8



(26.6) (10.0)

3.0

(11.9)

FIXED ASSETS TURNOVER RATIO (IN TIMES)





8.8

6.3

9.3

6.6





9.6



9.2

3.9

9.2

3.9

2.6

1.3

2.8

2.0

3.3

3.2



8307







8647



8702



8966







9433

4024



3633

7233

3421

6288

NO. OF PERMANENT EMPLOYEES



(***) Tangible Net Worth = Shareholdersâ&#x20AC;&#x2122; Fundsâ&#x20AC;&#x201D;Miscellaneous Expensesâ&#x20AC;&#x201D;Deferred Tax Asset (#) Figures of FY2016 have been regrouped / reclassified, wherever necessary to correspond with the figures of FY2017 (##) On Total operations

TEN YEARSâ&#x20AC;&#x2122; HIGHLIGHTS 29


DIRECTORS’ DIRECTORS’ REPORT AND REPORT AND ANNEXURES ANNEXURES

30 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


The gross revenue of the Company, on stand-alone basis, reported a growth of 12.7% in FY2017. The consolidated net revenue of the Company during FY2017 from continued operations recorded

To, The Members Your Directors are pleased to present their Eightieth Annual Report on the business and operations of the Company along with the &ZINYJI+NSFSHNFQ8YFYJRJSYXGTYM8YFSI FQTSJFSI(TSXTQNIFYJIKTWYMJà SFSHNFQ^JFW JSIJI­2FWHM­

a growth of 9.4% and stood at I6,120 crore.

THE YEAR IN RETROSPECT 9MJ8YFSIFQTSJFSI(TSXTQNIFYJI+NSFSHNFQ Statements of the Company represent the continuing operations for the year ended ­2FWHM­9MJINXHTSYNSZJITUJWFYNTSX have been presented under a separate head. FY2017 has been a steady and an encouraging one. The Company achieved a XYFSIFQTSJLWTXXYZWST[JWKWTRHTSYNSZJI operations of I­HWTWJIZWNSLYMJ^JFW under review, as compared to I­HWTWJ during the previous year, recording a growth of 12.7%. The consolidated net revenue of the Company during FY2017 from continued operations recorded a growth of 9.4% and stood at I­HWTWJFXHTRUFWJI\NYM I­HWTWJNSYMJQFXY^JFW 9MJXYFSIFQTSJUWTà YGJKTWJYF]KWTR continuing operations of the Company for the year under review amounted to I­HWTWJ as compared to a loss of I(1,139) crore for the previous year, recording an increase of

01

I ­HWTWJKWTRI ­HWTWJNSYMJUWJ[NTZX year, an increase of 24.4%. The tax expense for the year under review amounted to I ­HWTWJTSXYFSIFQTSJGFXNX and I­HWTWJTSHTSXTQNIFYJIGFXNX 9MJ(TRUFS^WJHTWIJIFXYFSIFQTSJ UWTà YFKYJWYF]KWTRHTSYNSZNSLTUJWFYNTSXTK IHWTWJFSNSHWJFXJTK KWTRQTXX of I(1,184) crore in the last year. (TSXTQNIFYJIUWTà YFKYJWYF]KWTR continuing operations for the year under review stood at I110 crore as compared with IHWTWJNSYMJQFXY^JFWFIJHWJFXJTK 4.3%. )JYFNQXTK8FQJXFSI5WTà Y'JKTWJ Interest and Tax of the respective Business Units in comparison with the previous à SFSHNFQ^JFWFWJLN[JSNSTable 1. Further, Table 2 highlights details of the Financial Performance of the Company for the continuing operations for the year ended ­2FWHM­ A detailed review of the operations and performance of the Company and each of

GROSS SALES AND PROFIT BEFORE INTEREST AND TAX (PBIT) (In Hcrore)

BUSINESS UNIT

Abbreviations â&#x20AC;&#x2DC;Actâ&#x20AC;&#x2122; refers to the Companies Act, 2013 â&#x20AC;&#x2DC;Listing Regulationsâ&#x20AC;&#x2122; refers to SEBI (Listing Obligations and Disclosure Requirements) 7JLZQFYNTSX â&#x20AC;&#x2DC;the Companyâ&#x20AC;&#x2122;,â&#x20AC;&#x2122;CGâ&#x20AC;&#x2122; refers to CG Power and Industrial Solutions Limited

 9MJHTSXTQNIFYJIUWTà YGJKTWJYF] from continuing operations for the year under review amounted to I­HWTWJFXHTRUFWJI to I­HWTWJNSYMJUWJ[NTZX^JFWWJHTWINSLF decrease of 29.7% over last year. Consolidated loss before tax from discontinued operations increased to

SALES

PBIT

2016â&#x20AC;&#x201C;17

2015â&#x20AC;&#x201C;16

2016â&#x20AC;&#x201C;17

2015â&#x20AC;&#x201C;16

8YFSIFQTSJ

2,684



208

117

Consolidated

3,739

3,474

384

329

8YFSIFQTSJ

2,078

1,801

190

174

Consolidated

2,361

2,119



139

Power Systems

Industrial Systems

DIRECTORS' REPORT & ANNEXURES 31


the Businesses including its international operations is contained in the section titled â&#x20AC;&#x2DC;Management Discussion and Analysisâ&#x20AC;&#x2122;, of this Annual Report.

DIVESTMENTS AND OTHER DEVELOPMENTS The Share Purchase Agreement (SPA) for sale of CGâ&#x20AC;&#x2122;s Power Businesses in Europe, North America and Indonesia was terminated due to certain conditions precedent, YMJKZQĂ QQRJSYTK\MNHM\FXGJ^TSIYMJ reasonable control of the parties to the SPA. The Company continues to explore alternative geography / product wise options for sale of its international power businesses excluding Indonesia while continuing with strategic initiatives for improving the overall TUJWFYNTSFQJKĂ HNJSH^TKNYXNSYJWSFYNTSFQ power businesses. During the year under review, the Company completed sale of its Automation business comprising of ZIV Aplicaciones y Tecnologia S.L, its subsidiaries and Automation businesses in UK, Ireland, France and India FYFS*SYJWUWNXJ;FQZJTK*ZWT­­2NQQNTS The sale is part of the Companyâ&#x20AC;&#x2122;s strategy to focus on its core operations in Power and Industrial Systems businesses in their respective markets. The Automation business XFQJMFXXNLSNĂ HFSYQ^HTSYWNGZYJIYTYMJ reduction of Companyâ&#x20AC;&#x2122;s international debts. In line with the Shareholders approval at the previous Annual General Meeting held TS­&ZLZXY­KTWXFQJTKNYXT[JWXJFX Transmission and Distribution businesses, the Company is actively pursuing divestment of its power business in United States of America (USA) comprised in its overseas XYJUIT\SXZGXNINFW^´(,5T\JW:8&.SH Additionally, CG Power Systems Belgium NV (PSBE), the Companyâ&#x20AC;&#x2122;s overseas step down subsidiary has signed an SPA for exiting from the Joint Venture in Saudi &WFGNF8FZIN5T\JW9WFSXKTWRJW(T1YI in which it holds 49% equity shareholding, subject to completion of conditions precedent. The completion of the SPA is J]UJHYJIG^­4HYTGJW­9MJ85& also envisages liquidation of CG Power Solutions Saudi Arabia Ltd, in which CG -TQINSLX'JQLNZR3;FXYJUIT\ST[JWXJFX XZGXNINFW^TKYMJ(TRUFS^MTQIX JVZNY^ shareholding.

32 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Further, the Solutions businesses in USA and UK upon completion of its existing HTSYWFHYXFWJNSYMJĂ SFQXYFLJTKGJNSL UMFXJITZY9MJ(TRUFS^¸XGWFSHMTKĂ HJ in Poland i.e. Crompton Greaves Ltd SA FSIT[JWXJFXXYJUIT\SXZGXNINFWNJX(, Power Systems Brazil Ltda and Microsol 1NRNYJI\JWJQNVZNIFYJITS­)JHJRGJW­ ­)JHJRGJW­FSI­&UWNQ­ respectively. The above divestments are part of the Companyâ&#x20AC;&#x2122;s stated strategy of debt reduction and focusing on its core operations and core RFWPJYXNS.SINF\MNHMUWT[NIJXXNLSNĂ HFSY growth opportunities, besides enhancing shareholderâ&#x20AC;&#x2122;s value.

NAME CHANGE Pursuant to the Scheme of Arrangement between the Company and Crompton Greaves Consumer Electricals Limited (CGCEL) as sanctioned by the Honâ&#x20AC;&#x2122;ble High (TZWYTK'TRGF^TS­3T[JRGJW­ inter-alia, the trademarks associated with the Companyâ&#x20AC;&#x2122;s erstwhile consumer products business viz â&#x20AC;&#x2DC;Cromptonâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;Crompton Greavesâ&#x20AC;&#x2122; were transferred to CGCEL. Since the Company, consequent to demerger of its erstwhile consumer products business, operates in a fully integrated B2B segment comprising of Power Transmission, Distribution and Industrial Businesses, the registered trademark â&#x20AC;&#x2DC;CGâ&#x20AC;&#x2122; associated with the B2B business has been retained by the Company. As a consequence of the above and pursuant to approval of the Members of the Company vide Special Resolution dated ­/FSZFW^­FSIYMJ(JSYWFQ,T[JWSRJSY / Registrar of Companies, Mumbai on ­+JGWZFW^­YMJ(TRUFS^HMFSLJINYX name from â&#x20AC;&#x2DC;Crompton Greaves Limitedâ&#x20AC;&#x2122; to â&#x20AC;&#x2DC;CG Power and Industrial Solutions Limitedâ&#x20AC;&#x2122; JKKJHYN[J­+JGWZFW^­ The new name â&#x20AC;&#x2DC;CG Power and Industrial Solutions Limitedâ&#x20AC;&#x2122; appropriately represents FSIWJĂ&#x201A;JHYXYMJGZXNSJXXNS\MNHMYMJ Company is presently engaged and the existing registered trademark / logo used by the Company. The change of Company name does not result in change of the legal status, constitution, operations, activities of the Company, nor does it affect any rights, liabilities or obligations of the Company.

DIRECTORS AND KEY MANAGERIAL PERSONNEL BOARD OF DIRECTORS COMPOSITION As on the date of this report, the Companyâ&#x20AC;&#x2122;s Board of Directors consists of nine Directors comprising of two Executive Directors and XJ[JS3TS*]JHZYN[J)NWJHYTWXTK\MNHMKTZW are Independent Directors. The Chairman, 2W­,FZYFR­9MFUFWNXF3TS*]JHZYN[J Director and represents the Promoter Group. 2W­0­3­3JJQPFSYNXYMJ(*4FSI2FSFLNSL )NWJHYTW2W­2FIMF[­&HMFW^FNXYMJ*]JHZYN[J Directorâ&#x20AC;&#x201D;Finance and CFO. Four other 3TS*]JHZYN[J)NWJHYTWX´2W­8FSOF^­1FGWTT )W­;FQJSYNS­[TS­2FXXT\2X­7FRSN­3NWZQF FSI2W­/NYJSIJW­'FQFPWNXMSFSFWJ Independent in terms of Regulation 16 of the Listing Regulations and Section 149 of the &HY9\TTYMJW)NWJHYTWX´2W­'­-FWNMFWFS FSI)W­4RPFW­,TX\FRNFWJ3TS*]JHZYN[J Directors. The Board consists of reputed professionals with diverse functional expertise, industry experience, educational VZFQNĂ HFYNTSXJYMSNHNY^FSILJSIJWRN] WJQJ[FSYYTKZQĂ QQNSLYMJ(TRUFS^¸XTGOJHYN[JX and strategic goals.

CHANGE IN COMPOSITION OF THE BOARD On recommendation of the Nomination and Remuneration Committee of the Board, 2W­/NYJSIJW­'FQFPWNXMSFS\FXFUUTNSYJIFX FS&IINYNTSFQ)NWJHYTWNSHFUFHNY^TK3TS Executive Independent Director on the Board of Directors of the Company with effect from ­2F^­.SFHHTWIFSHJ\NYM8JHYNTS of the Act, Mr Jitender Balakrishnan holds TKà HJZUYTYMJIFYJTKYMJJSXZNSL&SSZFQ General Meeting and being eligible, offers himself for appointment as an independent Director. Attention of Members is invited to relevant disclosure made in Notice of the ensuing Annual General Meeting and Explanatory statement thereto, with respect to his appointment. 2X­2JMJW­5ZIZROJJFSI2W­8MNWNXM­&UYJ 3TS*]JHZYN[J.SIJUJSIJSY)NWJHYTWX resigned from the Board, effective from ­2F^­FSI­&UWNQ­WJXUJHYN[JQ^ The Board places on record its gratitude and appreciation for the valuable HTSYWNGZYNTSXRFIJG^2X­5ZIZROJJFSI 2W­&UYJIZWNSLYMJNWWJXUJHYN[JYJSZWJX


02

FINANCIAL HIGHLIGHTS (In H crore)

PARTICULARS

STAND-ALONE

CONSOLIDATED

2016â&#x20AC;&#x201C;17

2015â&#x20AC;&#x201C;16

2016â&#x20AC;&#x201C;17

2015â&#x20AC;&#x201C;16

4,761



6,120



EBIDTA









Less: Finance Cost

164

39

188

80

Less: Depreciation

91

99



172



313

201

290

â&#x20AC;&#x201D;

â&#x20AC;&#x201D;

(1)

1

(100)



(73)

(111)



(1,139)

127

180

(1)



17

66



(1,184)

110

114

Revenue from Operations

5WTĂ YGJKTWJ*]HJUYNTSFQ.YJRX 9F] 8MFWJTKUWTĂ Y QTXXNSFXXTHNFYJX/TNSY;JSYZWJX Exceptional items 5WTĂ Y QTXX'JKTWJ9F] Less: Tax expense / (Credit) 5WTĂ Y QTXX&KYJW9F] Less: Minority Interest

â&#x20AC;&#x201D;

â&#x20AC;&#x201D;

0

(1)

5WTĂ Y QTXXKWTRHTSYNSZNSLTUJWFYNTSX



(1,184)

110



5WTĂ Y QTXXGJKTWJYF]KWTRINXHTSYNSZJITUJWFYNTSX

(33)

146

(612)

(492)

â&#x20AC;&#x201D;

61

(11)

82

3JYUWTĂ Y QTXXKWTRINXHTSYNSZJITUJWFYNTSX

(33)



(601)



3JYUWTĂ Y QTXXKTWYMJ^JFWFYYWNGZYFGQJYTYMJXMFWJMTQIJWX



(1,099)

(491)



Tax expense from discontinued operations

State-of-the-art manufacturing facility for Traction Electronics and Industrial Drives at Mandideep.

DIRECTORS' REPORT & ANNEXURES 33


The individual and peer

RETIREMENT BY ROTATION

assessment of Directors

.SYJWRXTKYMJUWT[NXNTSXTK8JHYNTSTK the Act and the rules made thereunder and Article 114 of the Articles of Association TKYMJ(TRUFS^2W­,FZYFR­9MFUFWFSI )W­4RPFW­,TX\FRNWJYNWJG^WTYFYNTSFY the ensuing Annual General Meeting of the Company and being eligible, seek WJFUUTNSYRJSY&XUJW7JLZQFYNTSTK the Listing Regulations and Secretarial 8YFSIFWITS,JSJWFQ2JJYNSLXNXXZJI by the Institute of Company Secretaries TK.SINF 88YMJGWNJKUWTà QJFSITYMJW WJQJ[FSYIJYFNQXWJLFWINSLWJFUUTNSYRJSYTK 2W­,FZYFR­9MFUFWFSI)W­4RPFW­,TX\FRN are contained in the Annexure accompanying the Explanatory Statement to the Notice of the ensuing Annual General Meeting. 9MJ'TFWIWJHTRRJSIXYMJNWWJ appointment as Directors of the Company, liable to retire by rotation.

contains facets such as relationship with Board and Senior Management, knowledge, competency and contribution to the Board including â&#x20AC;&#x2DC;StartContinue-Stopâ&#x20AC;&#x2122; approach based evaluation of individual Directors.

INDEPENDENT DIRECTORSâ&#x20AC;&#x2122; DECLARATION The Company has received declarations from FQQNYX.SIJUJSIJSY)NWJHYTWXHTSĂ WRNSLYMFY they meet the criteria of independence as laid down under Section 149 of the Act and Regulation 16 of the Listing Regulations.

BOARD MEETINGS During FY2017, the Board of Directors met four times to discuss and decide the business strategies and performance in addition to the items reported to the Board in accordance with the provisions of the Act, Listing Regulations and other statutory provisions. The intervening gap between the meetings was within the period prescribed under the Act, Listing Regulations and 8JHWJYFWNFQ8YFSIFWITS'TFWI2JJYNSLX issued by the Institute of Company 8JHWJYFWNJXTK.SINF 889MJIJYFNQXTKYMJ Board Meetings held and the attendance of the Directors thereat are given in the section titled â&#x20AC;&#x2DC;Report on Corporate Governanceâ&#x20AC;&#x2122; which forms part of this Annual Report.

BOARD COMMITTEES The Board has established statutory and STSXYFYZYTW^(TRRNYYJJXNSHTRUQNFSHJ with the requirements of the Act and Listing Regulations viz. Risk and Audit Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee, Stakeholdersâ&#x20AC;&#x2122; Relationship Committee and

34 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Securities Transfer Committee. The details of composition of the said Committees, its terms of reference, number of meetings held and attendance of the Committee Members YMJWJFYIZWNSLYMJĂ SFSHNFQ^JFWNXLN[JS in the section titled â&#x20AC;&#x2DC;Report on Corporate Governanceâ&#x20AC;&#x2122; which forms part of this Annual Report. During the year under review, the Board constituted ZIV Business Divestment Committee to evaluate, determine and review the proposals for divestment of Automation Business of the Company in India and overseas locations. The (TRRNYYJJHTRUWNXJITK2W­8MNWNXM­&UYJ )W­4RPFW­,TX\FRN2W­'­-FWNMFWFS 2W­0­3­3JJQPFSYFSI2W­2FIMF[­&HMFW^F The Committee held two meetings during the ^JFWZSIJWWJ[NJ\TS­3T[JRGJW­FSI ­3T[JRGJW­ All recommendations made by the Risk and Audit Committee during the year under review were accepted by the Board of Directors.

KEY MANAGERIAL PERSONNEL Pursuant to Section 203 of the Act, the Key Managerial Personnel of the Company as on the date of this report are: â&#x20AC;˘ 2W­0­3­3JJQPFSY(*4FSI2FSFLNSL Director â&#x20AC;˘ 2W­2FIMF[­&HMFW^F*]JHZYN[J)NWJHYTW´ Finance and CFO â&#x20AC;˘ 2W­2FSTO­0TZQ(TRUFS^8JHWJYFW^ During the year under review, there has been no change in the Key Managerial Personnel of the Company.

REMUNERATION POLICY AND CRITERIA FOR DETERMINING ATTRIBUTES, QUALIFICATION, INDEPENDENCE AND APPOINTMENT OF DIRECTORS The Company has formulated a Remuneration Policy governing the appointment and remuneration of Directors, Key Managerial Personnel, Senior Management and other employees of the Company. The Remuneration Policy also contains the criteria for determining VZFQNĂ HFYNTSXUTXNYN[JFYYWNGZYJX independence of Directors, provisions relating to loans and advances to the employees of the Company and also aims at attracting and retaining high calibre personnel


KWTRIN[JWXJJIZHFYNTSFQĂ JQIXFSI\NYM varied experience to serve on the Board of the Company for guiding the Management team to enhance organizational performance. The Remuneration Policy of the Company is provided in Annexure 6 to this Report. The Company believes that diversity at Board level is a critical ingredient in maintaining competitive advantage, understanding customers and stakeholders from different perspectives and broad experience leading to better decision making. With this objective, the Company has adopted the Board Diversity Policy which sets out the approach for diversity on the Board of Directors of the Company.

PERFORMANCE EVALUATION OF THE BOARD OF DIRECTORS Pursuant to the provisions of Section 178 of the Act and Regulation 17 of the Listing Regulations, the Board has carried out the annual evaluation of the performance of the Board, as well as the evaluation of the working of its Committees and individual Directors including Chairman of the Board during the year under review. A detailed questionnaire on various facets such as role of the Board, composition, effectiveness of Board processes, relationships with external stakeholders, strategy and risk management, ethics and compliance of the Board, Committees and individual Directors *]JHZYN[J3TS*]JHZYN[JFSI.SIJUJSIJSY Director) self assessment form was circulated to all the Directors of the Company. Evaluation of Committees was carried out based on its composition, adequacy of information / material for effective discussion, mandate of the Committees, adequate YNRJFQQTHFYNTSKTWKZQà QQNSLNYXRFSIFYJFSI recommendations to the Board. The individual and peer assessment of Directors contains facets such as relationship with Board and Senior Management, knowledge, competency and contribution to YMJ'TFWINSHQZINSL¡8YFWY(TSYNSZJ8YTU¸ approach based evaluation of individual Directors. The Chairman provides feedback on the individual and peer assessment. Based on the feedback received from each Director and the Chairman, the Nomination and Remuneration Committee and the Board of Directors of the Company discussed the outcome of the annual evaluation and

NIJSYNĂ JI)NWJHYTW¸XHTRRNYRJSYXN_JTK the Board, Board competencies, strong Committee constitution and Chairmanâ&#x20AC;&#x2122;s leadership as robust areas. Pursuant to the provisions of Schedule IV TKYMJ&HYFSI7JLZQFYNTSTKYMJ1NXYNSL Regulations, the Independent Directors of the Company at their meeting held on ­+JGWZFW^­HFWWNJITZYJ[FQZFYNTS TKYMJUJWKTWRFSHJTK3TS.SIJUJSIJSY Directors and the Board as a whole, performance of the Chairman and also assessed the quality, quantity and timeline of Ă&#x201A;T\TKNSKTWRFYNTSGJY\JJSYMJ2FSFLJRJSY and the Board.

FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS 5ZWXZFSYYT7JLZQFYNTSTKYMJ1NXYNSL Regulations, the Company familiarizes itâ&#x20AC;&#x2122;s Independent Directors with their roles, rights, responsibilities as well as the Companyâ&#x20AC;&#x2122;s business and operations. Moreover, the Directors are regularly updated on the business strategies and performance, management structure and key initiatives of businesses at every Board Meeting. The details of the programme can be viewed under the following link available on the Companyâ&#x20AC;&#x2122;s website http://www. cgglobal.com/frontend/finalnonproduct. aspx?cnl2=yrnPqECUvhk=

PROMOTER GROUP The Company is a part of the Avantha Group, one of Indiaâ&#x20AC;&#x2122;s leading business conglomerates. Led by Chairman 2W­,FZYFR­9MFUFWYMJ&[FSYMF,WTZUMFX global footprint and presence in 90 countries \NYMRTWJYMFSJRUQT^JJX\TWQI\NIJ As required under the Listing Regulations, CG periodically discloses the details of its promoter group and person acting in concert NSYMJXMFWJMTQINSLUFYYJWSFSITYMJWĂ QNSLX with the Stock Exchanges.

SUBSIDIARY, JOINT VENTURES AND ASSOCIATE COMPANIES &XTS2FWHM­YMJ(TRUFS^ MFXYMWJJ.SINFSXZGXNINFWNJXKTWJNLS subsidiaries, one joint venture and three associate companies. Details of the subsidiary, joint venture and associate HTRUFSNJXJ]NXYNSLFXTK­2FWHM­ and formed or ceased during the year under

review are provided in Annexure 5 to this 7JUTWYNS+TWR2,9 *]YWFHYTK&SSZFQ Return). The Company has adopted the Indian Accounting Standards (Ind AS), voluntarily, as stated in the Companies (Indian Accounting 8YFSIFWIX7ZQJX\NYMJKKJHYKWTR ­&UWNQ­FSIYMJWJFKYJW5ZWXZFSYYTYMJ Companies (Indian Accounting Standards) 7ZQJXFSI7JLZQFYNTSTK1NXYNSL Regulations, the Financial Statements of YMJ(TRUFS^WJĂ&#x201A;JHYYMJHTSXTQNIFYNTSTK accounts of the Company, its subsidiaries, associates and joint venture companies. Pursuant to Section 136 of the Act, the audited annual accounts of each of the Companyâ&#x20AC;&#x2122;s subsidiaries, associates and joint venture entities are placed on the website of the Company and not enclosed in this Annual Report. If any Member of the Company so desires, the Company will be happy to make available the said audited annual accounts, on written request. The physical copies of the aforesaid documents will also be available FYYMJ(TRUFS^¸X7JLNXYJWJI4KĂ HJKTW inspection during normal business hours on all working days, excluding Saturdays, upto the date of the ensuing Annual General Meeting and at the venue of the Annual General Meeting. In terms of Section 129 of the Act, statement containing salient features of the Financial Statements of the Companyâ&#x20AC;&#x2122;s subsidiaries / associates / joint ventures / HTRUFSNJXNS+TWR&4(NXLN[JSNSYMJ notes to the Financial Statements in this Annual Report. Pursuant to Regulation 16 of the Listing Regulations, a Policy for determining Material Subsidiary of the Company as approved by the Board of Directors of the Company is available on the website of the Company. The weblink to download the policy is as under http://www.cgglobal.com/frontend/ finalnonproduct.aspx?cnl2=yrnPqECUvhk=

RELATED PARTY TRANSACTIONS During the year, related party transactions that were entered into by the Company were on an armâ&#x20AC;&#x2122;s length basis and in the ordinary course of business. In terms of the India Related Party Transaction Policy of the Company, there are no material related party contracts, arrangements or transactions undertaken by the Company during the year

DIRECTORS' REPORT & ANNEXURES 35


The UHV lab for switchgear at Nashik is equipped with latest state-of-the-art testing equipments.

36 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


under review. Hence, disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred to NSXZGXJHYNTS TK8JHYNTSTKYMJ&HYNS +TWR&4(NXSTYFUUQNHFGQJYTYMJ Company for the year under review. An omnibus approval has been granted by the Risk and Audit Committee of the Board, based on the criteria determined and approved by the Board of Directors of the Company and by the Risk and Audit Committee, for transactions which are of foreseen and repetitive nature with related parties. Such omnibus approvals are subjected to renewal by the Risk and Audit Committee every year and are monitored by the Risk and Audit Committee on a quarterly basis. All related party transactions entered into by the Company are presented and reviewed by the Risk and Audit Committee every quarter. The Companyâ&#x20AC;&#x2122;s India Related Party Transactions Policy can be downloaded from the website of the Company. The weblink of the same is as under http://www.cgglobal. com/pdfs/policies /India%20Related%20 Party%20Transactions%20Policy.pdf

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS Particulars of loans, guarantees given and investments made by the Company during FY2017, pursuant to the provisions of Section 186 of the Act and Schedule V of the Listing Regulations are given in the notes to the Financial Statements in this Annual Report.

comprehensive â&#x20AC;&#x2DC;Enterprise Risk Management *72KWFRJ\TWP¸KTWNIJSYNĂ HFYNTSTK elements of risk, conducting risk assessment and suggesting mitigation procedure to the Board of Directors of the Company to ensure that management controls the risks through a UWTUJWQ^IJĂ SJIKWFRJ\TWP ERM framework aims to imbibe a â&#x20AC;&#x2DC;risk cultureâ&#x20AC;&#x2122; throughout the organization, facilitate risk based decision making, improve governance and accountability, protect and enhance stakeholder value. The ERM framework enables the Company to identify elements of risk based on the WNXPNIJSYNĂ HFYNTSYJHMSNVZJXFSFQ^_JFSI comprehend the nature of risk, escalate and consolidate risks at Unit level to Business Unit level, monitor and review risks and implement action plans to mitigate risk. Quarterly meetings at Unit level and Business Unit level are held for overseeing existing risk portfolio, monitor effectiveness of the risk management framework including mitigation UQFSXNIJSYNĂ JIG^YMJ2FSFLJRJSYYMWTZLM the risk management exercise. The Risk and Audit Committee reviews the adequacy of the ERM framework of the Company, key risks associated with the businesses of the Company, measures and steps in place to mitigate the same, from time to time. The assessment of the risks covers Strategy, Technology, Financial, Operations & Systems, Legal & Regulatory and Human Resources risks. During the year under review, none of the WNXPXNIJSYNĂ JIYMWJFYJSYMJJ]NXYJSHJTKYMJ Company.

BUSINESS RESPONSIBILITY REPORT Pursuant to Regulation 34 of the Listing Regulations, the Business Responsibility Report highlighting the initiatives taken by the Company in the areas of environment, social, economical and governance, is available on the website of the Company. The weblink to download the report is as under http://www.cgglobal.com/frontend/ finalnonproduct.aspx?cnl2=Nu/tTrrPlMI=

ENTERPRISE RISK MANAGEMENT FRAMEWORK Integrating the process for managing risks across the Companyâ&#x20AC;&#x2122;s business and operations is the Companyâ&#x20AC;&#x2122;s philosophy for Enterprise Risk Management. In this regard, the Company has developed a

INTERNAL FINANCIAL CONTROLS The Company has in place an effective FSIJKĂ HNJSYNSYJWSFQHTSYWTQXYJXYNSLFSI monitoring system which enables the Company to ensure that these controls are operating effectively. CGâ&#x20AC;&#x2122;s controls have been designed to provide reasonable assurance with regard to maintaining of proper internal controls, monitoring of operations, protecting assets from unauthorised use or losses, compliances with regulations for ensuring WJQNFGNQNY^TKĂ SFSHNFQWJUTWYNSL

RESEARCH AND DEVELOPMENT (R&D) During the year under review, the Companyâ&#x20AC;&#x2122;s R&D activities continued to focus on

development of indigenous and energy JKĂ HNJSYUWTIZHYX Power Transformers Division developed 2;& 1;.343*HTWJHTNQ assembly) inverter duty for solar application and amorphous transformers. Research was HFWWNJITZYKTW2;&P;,9 2;& P;XMTWYHNWHZNYOTGFSI&38.8YFSIFWI '-2;&P;&QQWFYNSLKWTR 0;&YT0;&P; P;FXUJW.8 1180 level 1 were successfully type tested. Switchgear Division indigenously designed and developed composite insulators to cater to the changing requirements of utilities for switchgear products and to reduce dependence on imported materials. Switchgear Division also developed Arc assist double motion interrupters that will result in approximately 40% reduction of mechanism energy requirement, algorithms for controlled switching of reactor & transformer and CGâ&#x20AC;&#x2122;s Arista GIS which will achieve the requirements of global market for YMJWFYNSLXP;P&&-_ CG is also in process of developing high voltage vacuum circuit breakers for the rating TKP;P&&\MNHM\NQQGJHTRJ a platform technology for future development TKP;;('WFYNSLX(,KTHZXJITS research in SPAR drive for GT01, GAI3S P;,.8\NYMXUWNSLIWN[JUTQJRTZSYJI FZYTWJHQTXJWTNQNRRJWXJI[FHZZRGWJFPJW for completely self protected transformer, Self Powered Pole Mounted Outdoor Capacitor 8\NYHMJX(TRUFHYP;FSIP;,.8 P;)9'(1&88?34GQTHPX\NYMP/ kV energy and external gapped transmission line arrestor. Industrial Systems business focused on development of electronic excitation system KTW0<FQYJWSFYTWFSI-5&(&( )*2:FSI0<NS[JWYJWKTW)*2:3J\ range of 480Vac â&#x20AC;&#x2DC;stacked drivesâ&#x20AC;&#x2122; (including &+*KWTRP<YT2<NSXRFQQJWKTTYUWNSY AFE drives, next generation control platform, TSA range of Normal Duty softstarters with integrated bypass upto 1100A and next LJSJWFYNTS.5=.5 FSIUTXXNGQ^.5 variable speed drives were developed during YMJ^JFW(,FQXTIJ[JQTUJI(8&HJWYNĂ JI XNSLQJUMFXJRTYTWXZUYT-55FSI5 During FY2017, CG registered designs of (TRUFHY8JWNJX(KWFRJ&QYJWSFYTW KWFRJ&QYJWSFYTW8TQNI>TPJ)(2TYTW&+8 &:8&RUQ^INSJKTW98YFGNQN_JW'*1

DIRECTORS' REPORT & ANNEXURES 37


The Company propagates â&#x20AC;&#x2DC;Zero Harm Cultureâ&#x20AC;&#x2122; towards employees, environment and other OP=GADKH@ANO=ONAĹ&#x192;A?PA@ in our EHS Policy and guidelines.

Chennai, Solid Yoke DC Motor in frame AUS / &+8 1THTRTYN[JFSI+QFRJUWTTK'WFPJ 2TYTWX* R&D efforts enables the Company to manufacture cost competitive products, offer improved and integrated product portfolio, increase its market share, shorten lead time, import substitution and offer high XUJHNĂ HFYNTSUWTIZHYXFXUJWWJVZNWJRJSYXTK international markets.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Details pertaining to conservation of energy, technology absorption and foreign exchange earnings and outgo, as required under Section 134 of the Act read with the Companies (Accounts) Rules, 2014, are given in the prescribed format as Annexure 1 to this Report.

ENVIRONMENT, HEALTH & SAFETY (EHS) The Company propagates â&#x20AC;&#x2DC;Zero Harm Cultureâ&#x20AC;&#x2122; towards employees, environment FSITYMJWXYFPJMTQIJWXFXWJĂ&#x201A;JHYJINSTZW EHS Policy and guidelines. Through our EHS Policy, we aim at not only complying with legal requisites of safeguarding our employees, environment and the society at large but also setting high internal standards for compliance. All CG manufacturing units in Asia, EMEA and Americas have maintained their .84FSI48-&8HJWYNĂ HFYNTSX Regular trainings on safety awareness and sustainable growth are conducted at all manufacturing locations. Fire safety week is also observed across all locations in India under the guidance of the Fire Adviser, Ministry of Home Affairs, Government of India. EHS Key Performance Indicators (KPIs) are linked with SMART goals of all units and individuals for their Annual Performance Management process. Quarterly audits are conducted to review the EHS implementation and process compliances across all locations of the Company. Corrective actions generated from these audits and various EHS events are captured and tracked for closure in an Online Event Reporting System Portal, an EHS one stop shop.

38 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

During the year under review, CG Mandideep Unit was felicitated with Annual Outstanding Achievement Award 2016 in the EHS category of large industry sector from the Federation of Madhya Pradesh Chamber of Commerce and Industries (FMPCCI) for its best practices and processes adopted for EHS. The Company also has EHS RECOGNIZE policy aligned with organizational RECOGNIZE drive with the objective of rewarding individual and teams for collective efforts towards EHS. Two units were awarded as Best EHS Unit under the category of CEO Annual Award.

CORPORATE SOCIAL RESPONSIBILITY (CSR) The Company believes that business sustainability is closely connected to the sustainable development of the communities and hence it uses CSR to integrate economic, environment and social objectives with the Companyâ&#x20AC;&#x2122;s operations and growth. During the year, the Company has undertaken various CSR projects in the areas of employability, education and health. The Company also supports Avantha Foundation on programs such as reduction of malnutrition and hunger, expansion of Avantha Urban Innovation Project and building capacities of stakeholders in small towns to ensure better delivery of services to citizens. The details of the composition of CSR Committee, CSR Policy and projects undertaken by the Company during FY2017 are given in the section titled â&#x20AC;&#x2DC;Annual Report on CSR initiativesâ&#x20AC;&#x2122; in Annexure 2 of this Report.

MATERIAL CHANGES AND COMMITMENT AFFECTING FINANCIAL POSITION OF THE COMPANY There are no material changes and HTRRNYRJSYXFKKJHYNSLYMJà SFSHNFQUTXNYNTS of the Company which have occurred GJY\JJSYMJJSITKYMJà SFSHNFQ^JFWTKYMJ (TRUFS^NJ­2FWHM­FSIYMJIFYJTK this Report.

MATERIAL ORDERS OF REGULATORS / COURTS / TRIBUNALS )ZWNSLYMJ^JFWZSIJWWJ[NJ\STXNLSNĂ HFSY or material orders were passed by the


Regulators or Courts or Tribunals which impact the going concern status and Companyâ&#x20AC;&#x2122;s operations in future.

REGISTRAR & SHARE TRANSFER AGENT The Company has appointed Datamatics Financial Services Limited, (DFSL) as its Registrar & Share Transfer Agent. DFSL NXF8*'.WJLNXYJWJI7JLNXYWFW 8MFWJ Transfer Agent. The contact details of DFSL are mentioned in the section titled â&#x20AC;&#x2DC;Report on Corporate Governanceâ&#x20AC;&#x2122; of this Annual Report.

DIVIDEND DISTRIBUTION POLICY Pursuant to Regulation 43A of the Listing Regulations, the Company has formulated a Dividend Distribution Policy to help investors to get a clearer picture on returns from their investments in the Company and also identify the stocks matching their investment objectives. The policy includes YMJà SFSHNFQUFWFRJYJWXIN[NIJSIUF^TZY circumstances, internal and external factors, IN[NIJSIUF^TZYWFYNTFSIWJYFNSJIJFWSNSLX utilisation which will be considered at the time of declaration of Dividend. The Dividend Distribution Policy is provided in Annexure 7 which forms part of this report and is also available on the website of the Company. The weblink to download the policy is http:// www.cgglobal.com/frontend/finalnonproduct. aspx?cnl2=yrnPqECUvhk=

PUBLIC DEPOSITS The Company has not accepted any deposits from Public or its Members during FY2017 under Sections 73 and 76 of the Act and no deposits are subsisting as on date.

PARTICULARS OF EMPLOYEES Disclosures pertaining to remuneration and other details as required under Section TKYMJ&HYWJFI\NYM7ZQJ TKYMJ Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given in Annexure 3 of this Report. In terms of the provisions of Section 197 TKYMJ&HYWJFI\NYM7ZQJX FSI TKYMJ Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules is given in Annexure 8

which forms part of this Report. The said information is available for inspection at the 7JLNXYJWJI4KĂ HJTKYMJ(TRUFS^IZWNSL working hours up to the date of the ensuing Annual General Meeting and any Member interested in obtaining a copy thereof may write to the Company Secretary / Compliance 4KĂ HJWNSYMNXWJLFWI

Managing Director of the Company, with the status of investigations and actions taken by the Management Committee. No material concerns or irregularities have been reported during the year under review and none of the Whistle Blowers were denied access to the Risk and Audit Committee of the Board.

COMPLAINTS RELATING TO SEXUAL HARASSMENT

AUDITORS AND AUDIT REPORTS STATUTORY AUDITORS

In terms of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, it is mandatory to review status of sexual harassment related complaints in the Annual Report. For protection against sexual harassment, the Company has adopted a Prevention of Sexual Harassment Policy which has formalised a free and fair enquiry process for dealing with such issues with clear timelines. The Company has also constituted regionwise Sexual Harassment Committees presided by a woman employee and comprising of four to six Company employees and an external member to which employees can address their complaints. During the year under review, the Committee met once a year and conducted 43 workshops and programs covering 1,010 employees to spread awareness on sexual harassment related issues. There were no incidents of sexual harassment reported during the year under review.

At the 79th Annual General Meeting of the Company, M/s. Chaturvedi & Shah, Chartered Accountants, Mumbai (Firm Registration No. 101720W), were appointed as Statutory Auditors of the Company for a term of Ă [J^JFWXZUYTYMJHTSHQZXNTSTKYMJth Annual General Meeting and also as Joint Statutory Auditors of the Company alongwith 2X­8MFWU 9FSSFS(MFWYJWJI&HHTZSYFSYX (Firm Registration No. 109982W) upto the conclusion of 80th Annual General Meeting. The term of M/s. Sharp & Tannan as Joint Statutory Auditors of the Company expires at the ensuing 80th Annual General Meeting pursuant to Section 139 of the Act and Rules made thereunder. The Board places on record its appreciation for the services rendered by M/s. Sharp & Tannan as the Statutory Auditors of the Company. M/s. Chaturvedi & Shah have provided YMJNWHTSXJSYFSIHTSĂ WRJIYMFYYMJ^ meet the eligibility criteria prescribed under Section 141 of the Act read with Rule 4 of the Companies (Audit and Auditors) Rules, 2014 FSIYMFYYMJ^FWJSTYINXVZFQNĂ JIYTFHYFX Statutory Auditors of the Company. 2X(MFYZW[JIN 8MFMMF[JHTSĂ WRJI YMFYYMJĂ WRMTQIXF[FQNIHJWYNĂ HFYJNXXZJI by the Peer Review Board of the Institute of Chartered Accountants of India. They have FQXTKZWSNXMJIFIJHQFWFYNTSHTSĂ WRNSLYMJNW independence as well as their armâ&#x20AC;&#x2122;s length relationship with the Company and declared that they have not taken up any prohibited STSFZINYFXXNLSRJSYXKTWYMJ(TRUFS^ Accordingly the Risk and Audit Committee and the Board have recommended WFYNĂ HFYNTSTKFUUTNSYRJSYTK2X(MFYZW[JIN & Shah as Statutory Auditors of the Company at the ensuing Annual General Meeting. During the year under review, the Statutory Auditor have not reported any instances of TKKJSHJTWKWFZIHTRRNYYJIG^YMJTKĂ HJWXTW employees of the Company, to the Risk and

VIGIL MECHANISM The Company has set up a vigil mechanism viz. Whistle Blower Policy as per the provisions of Section 177 of the Act and Regulation 18 of the Listing Regulations to enable its employees to report violations, genuine concerns, unethical behavior and irregularities, if any, noticed by them which could adversely affect the Companyâ&#x20AC;&#x2122;s operations. The Policy also lays down the procedures to be followed by Senior Management for tracking of complaints, giving feedback, conducting investigations and taking disciplinary actions, if required. The Head of Internal Audit submits a report to the Chairman of the Risk and Audit Committee on a quarterly basis, on all complaints referred to the Management Committee, nominated by the CEO and

DIRECTORS' REPORT & ANNEXURES 39


Audit Committee of the Board or the Board of Directors of the Company.

COST AUDITOR The Company had appointed M/s. Ashwin Solanki & Associates, Cost Accountants, Mumbai (Firm Registration No. 100392) to audit the cost records related to the Companyâ&#x20AC;&#x2122;s products for FY2017. The cost FZINYWJUTWYXKTW+>\JWJĂ QJI\NYMYMJ Registrar of Companies, Mumbai within the prescribed statutory deadline. Upon recommendation of the Risk and &ZINY(TRRNYYJJYMJ'TFWIMFXWJFUUTNSYJI M/s. Ashwin Solanki & Associates as Cost Auditor of the Company for FY2018 at a remuneration of IQFPMXUQZXTZYTKUTHPJY expenses and taxes, as applicable. The remuneration payable to M/s. Ashwin Solanki & Associates for FY2018 is recommended for WFYNĂ HFYNTSG^YMJ2JRGJWXFYYMJJSXZNSL Annual General Meeting.

SECRETARIAL AUDITOR The Company had appointed M/s. Pramod S Shah & Associates, Practising Company Secretaries, Mumbai (Firm Registration No. P2001MH010300) to undertake the Secretarial Audit of the Company for FY2017. Secretarial Audit Report for FY2017 in Form 27NXFSSJ]JIFXAnnexure 4 to this Report. 9MJWJFWJSTVZFQNĂ HFYNTSXWJXJW[FYNTSXTW adverse remarks or disclaimers made by the Statutory Auditor or the Secretarial Auditor in their reports and hence do not call for any further comments.

DIVIDEND No dividend has been recommended or paid KTWYMJ^JFWJSIJI­2FWHM­

RESERVES 9MJ7JXJW[JXTSXYFSIFQTSJGFXNXFY the beginning of the year amounted to I­HWTWJFSIFYYMJJSITKYMJ^JFWXYTTI at I­HWTWJ

SHARE CAPITAL &XFY­2FWHM­YMJFZYMTWNXJIXMFWJ capital of the Company was I4,076,000,000 (Rupees Four Hundred Seven Crore And Sixty Lakhs only) divided into 2,038,000,000 equity shares of I2 (Rupees two only) each.

40 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

&XFY­2FWHM­YMJXZGXHWNGJIFSI UFNIZUXMFWJHFUNYFQTKYMJ(TRUFS^XYTTI at I 7ZUJJX4SJ-ZSIWJI Twenty Five Crore Thirty Four Lakhs Ninety Two Thousand Two Hundred and Eighty Four only) consisting of 626,746,142 equity shares of I2 (Rupees two only) each. The Companyâ&#x20AC;&#x2122;s Equity Shares are listed and traded in compulsory dematerialized form on BSE Limited and National Stock Exchange of India Limited. The Company has issued Global Depository Receipts (GDRs) in 1996 and the underlying shares for each GDR were issued in the name of The Bank of New York, the Depository. Each GDR of the (TRUFS^NXJVZN[FQJSYYTĂ [JJVZNY^XMFWJX &XTS­2FWHM­,)7X\JWJ outstanding, which represent 882,329 underlying equity shares of the Company.

EXTRACT OF ANNUAL RETURN The details forming part of the extract of the &SSZFQ7JYZWSNS+TWR2,9FWJLN[JSNS Annexure 5 to this Report in accordance with Section 92 of the Act and Rule 12 of the Companies (Management and Administration) Rules, 2014, as amended from time to time.

DIRECTORSâ&#x20AC;&#x2122; RESPONSIBILITY STATEMENT The Directors would like to assure the Members that the Financial Statements both TSXYFSIFQTSJFSIHTSXTQNIFYJIGFXNX for the year under review conform, in their entirety, to the requirements of the Act. 9MJ)NWJHYTWXHTSĂ WRYMFY â&#x20AC;˘ the Annual Accounts have been prepared in conformity with the applicable Accounting Standards alongwith proper explanations relating to material IJUFWYZWJX â&#x20AC;˘ the Accounting Policies selected and applied on a consistent basis and judgments and estimates made are reasonable and prudent to give a true and fair view of the state of affairs of the (TRUFS^FYYMJJSITKYMJĂ SFSHNFQ^JFW FSITKYMJUWTĂ YFSIQTXXTKYMJ(TRUFS^ KTWYMJĂ SFSHNFQ^JFW

â&#x20AC;˘

UWTUJWFSIXZKĂ HNJSYHFWJMFXGJJS taken to maintain adequate accounting records for safeguarding the assets of the Company and for preventing and detecting KWFZIFSITYMJWNWWJLZQFWNYNJX

â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

the Annual Accounts have been prepared TSFLTNSLHTSHJWSGFXNX YMJNSYJWSFQĂ SFSHNFQHTSYWTQXQFNIIT\S in the Company were adequate and TUJWFYNSLJKKJHYN[JQ^ the systems devised to ensure compliance with the provisions of all applicable laws were adequate and operating effectively.

ACKNOWLEDGEMENTS The Board of Directors wish to convey their gratitude and appreciation to all the employees of the Company globally, for their tremendous efforts as well as their exemplary dedication and contribution to the Companyâ&#x20AC;&#x2122;s performance. The Directors would also like to thank the employee unions, shareholders, customers, dealers, suppliers, bankers, government and all other business associates for their continued support extended to the Company and the Management. On behalf of the Board of Directors GAUTAM THAPAR Chairman (DIN: 00012289) New Delhi, 26 May 2017


CGâ&#x20AC;&#x2122;s Engineering Projects Division has full expertise in executing on turnkey basis AIS Substations upto 765kV and GIS Substations upto 400kV.

DIRECTORS' REPORT & ANNEXURES 41


ANNEXURE 1 Information pertaining to conservation of energy, technology absorption and foreign exchange earnings and outgo under Section 134 of the Companies Act, 2013 and rules made thereunder

2. ALTERNATE SOURCES OF ENERGY

â&#x20AC;˘

â&#x20AC;˘ A. CONSERVATION OF ENERGY: 1. ENERGY CONSERVATION MEASURES TAKEN: The accelerated momentum on energy conservation initiatives continued this year at manufacturing plants worldwide, with further efforts towards substitution of traditional sources of energy with renewable energy, measures for heat control and additional equipments for saving electricity. Illustrative measures taken towards energy conservation at Units were: â&#x20AC;˘ *SJWL^JKĂ HNJSYFNWHTRUWJXXTWXNSXYFQQJI FYKFHYTW^QTHFYNTS  â&#x20AC;˘ LED lighting and daylighting solutions were adopted and new equipment based TSNS[JWYJWYJHMSTQTLNJX\JWJNSXYFQQJI â&#x20AC;˘ Installation of Variable Frequency Drives (VFD) for energy saving in UFNSYGTTYMJ]MFZXYGQT\JWX  HWFSJX FSI HTRUWJXXTWX â&#x20AC;˘ .SXYFQQFYNTSTKJKĂ HNJSYMJFYNSLX^XYJRTS Auto clave for locomotive manufacturing UQFSY â&#x20AC;˘ Passive infrared sensors have been NSXYFQQJIKTWFZYTRFYNHQNLMYHTSYWTQ â&#x20AC;˘ Saving in annual power cost was accomplished through replacement of 180KW Thyristor controlled ovens by more JSJWL^JKĂ HNJSY0<T[JSXFYKFHYTW^ QTHFYNTS â&#x20AC;˘ Replacement of conventional lights with solar panels and installation of Automatic 5T\JW+FHYTW(TSYWTQ &5+(UFSJQX â&#x20AC;˘ 7JIZHYNTSNSHTSXZRUYNTSTK6WJFHYN[J power resulting in power saving and NRUWT[JIJKĂ HNJSH^TKYMJ\MTQJJQJHYWNH power system. Every unit has set targets for paper, power and water consumption per employee which is monitored on a regular basis.

42 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

â&#x20AC;˘

BOOT model (Build Operate Own Transfer Model) is being implemented to generate solar power at roof top at Switchgear division. Hot air from compressors was recycled to drive out compressed air from machines and tools to heat work areas and also to heat water in European locations. (JSYWFQMJFYNSLX^XYJRX\JWJRTIJWSN_JI NSKFHYTWNJXFSITKĂ HJXNS-ZSLFW^YT reduce energy consumption.

3. CAPITAL INVESTMENT ON ENERGY CONSERVATION EQUIPMENT The following processes are under implementation for further reducing energy consumption: â&#x20AC;˘ Installation of Variable Frequency Drives ;+)KTWXYFYNTSFW^FSISTSXYFYNTSFW^ FUUQNHFYNTSX â&#x20AC;˘ Installation of equipments based on inverter technology â&#x20AC;˘ .SXYFQQFYNTSTK9M^WNXYTWHTSYWTQQJIT[JSX  â&#x20AC;˘ :XJIĂ ]JIFSI[FWNFGQJHFUFHNYTWGFSPKTW UT\JWKFHYTWNRUWT[JRJSY  â&#x20AC;˘ .SXYFQQFYNTSTKWJYWTĂ YYJI1*)QNLMYXNS TKĂ HJXFSIXMTUĂ&#x201A;TTWX

B. TECHNOLOGY ABSORPTION 1. EFFORTS MADE TOWARDS TECHNOLOGY ABSORPTION

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘ â&#x20AC;˘

Indigenized and type tested new designs for control electronics of IGBT power convertor for 6000HP electric locomotive FHVZNWJIKWTR(&+5 &8UFNS 420kV condenser bushing was developed to enhance electrical performance (i.e. voltage stress) and meet application based XUJHNĂ HFYNTSWJVZNWJRJSYX  Multiple validation tests were conducted to verify thermal gradients in arresters with HTRUTXNYJNSXZQFYTWX P;)JFI9FSP'WJFPJW9JHMSTQTL^  P;,.89JHMSTQTL^\FXXZHHJXXKZQQ^ absorbed and enhanced and indigenized XUWNSLIWN[JKTWP;,.8

2. THE BENEFITS DERIVED LIKE PRODUCT IMPROVEMENT, COST REDUCTION, PRODUCT DEVELOPMENT OR IMPORT SUBSTITUTION 9MJGJSJĂ YXIJWN[JIKWTRYMJXJJKKTWYXFWJ â&#x20AC;˘ *SMFSHJIUWTIZHYVZFQNY^JKĂ HNJSY XTQZYNTSXYMJWJG^RJJYNSLXUJHNĂ H HZXYTRJWWJVZNWJRJSYX â&#x20AC;˘ Improved 420kV CT with aluminium cast tank for better aesthetics and 420kV CT with composite insulators for shatter proof IJXNLS â&#x20AC;˘ .SHWJFXJIJSJWL^JKĂ HNJSH^FSIWJIZHJI CO2JRNXXNTSX â&#x20AC;˘ P;FSIP;(9\JWJWJIJXNLSJIYT FHMNJ[JWJIZHYNTSNSYTYFQRFYJWNFQHTXY â&#x20AC;˘ Increased market penetration by expanding product lines and reducing UWTIZHYQJFIYNRJ â&#x20AC;˘ Developed indigenous composite insulator to meet switchgears requirements, starting with composite insulators for Surge Arresters and also developed 420kV and P;(9\NYMHTUUJWUWNRFW^

3. IMPORTED TECHNOLOGY The data for details of the technology imported is given in Table 1 of Annexure 1.

4. EXPENDITURE ON R&D The Companyâ&#x20AC;&#x2122;s expenditure on R&D on XYFSIFQTSJGFXNXKTWYMJ^JFWJSIJI ­2FWHM­NXLN[JSNSTable 2 of Annexure 1.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO The total foreign exchange earned and used by the Company during the year under review is given in Table 3 of Annexure 1. On behalf of the Board of Directors GAUTAM THAPAR Chairman (DIN: 00012289) New Delhi, 26 May 2017


01

IMPORTED TECHNOLOGY

DETAILS OF TECHNOLOGY IMPORTED

YEAR OF IMPORT

WHETHER THE TECHNOLOGY HAS BEEN FULLY ABSORBED

IF NOT FULLY ABSORBED, AREAS WHERE ABSORPTION HAS NOT TAKEN PLACE AND REASONS THEREOF

Control electronics for IGBT based power converter from CAF P&A, SPAIN (ALT+D)

FY2017

No

Commissioning in Q1 of FY2018, Field Trial in Q2 of FY2018

02

EXPENDITURE ON R&D (H in crore)

PARTICULARS

AMOUNT

A. Capital



B. Revenue

34.68

C. Total (A+B)



Total R&D Expenditure FXFUJWHJSYFLJTKLWTXXYZWST[JW HTSYNSZJITUJWFYNTSX FXFUJWHJSYFLJTKUWTĂ Y QTXXGJKTWJYF] HTSYNSZJIFSIINXHTSYNSZJITUJWFYNTSX

03





FOREIGN EXCHANGE EARNINGS AND OUTGO (H in crore)

PARTICULARS

AMOUNT

Total Foreign Exchange earned

806.42

Total Foreign Exchange used



DIRECTORS' REPORT & ANNEXURES 43


ANNEXURE 2 Annual report on Corporate Social Responsibility (CSR) initiatives for FY2017

â&#x20AC;˘

Upholding and promoting the principles of inclusive growth, diversity and equitable IJ[JQTURJSYNSXTHNJY^ 

â&#x20AC;˘ 1. A BRIEF OUTLINE OF THE COMPANYâ&#x20AC;&#x2122;S CSR POLICY, INCLUDING OVERVIEW OF PROJECTS OR PROGRAMS PROPOSED TO BE UNDERTAKEN AND A REFERENCE TO THE WEB-LINK TO THE CSR POLICY AND PROJECTS OR PROGRAMS. CSR POLICY The Company is committed to its stakeholders to conduct its business in a responsible manner that creates a sustained positive impact on the society. This means working with underserved communities to improve the quality of their life and preserve the ecosystem that supports the communities and the Company. For CG, being a socially responsible corporate means:

01

Collaborating with local government agencies and like minded corporate, voluntary and academic organizations in UZWXZNYTKTZWLTFQX  â&#x20AC;˘ Building active and long term partnerships with the surrounding communities to XNLSNĂ HFSYQ^NRUWT[JYMJHTSINYNTSTKYMJ RTXYZSIJWXJW[JIFRTSLXYYMJR  â&#x20AC;˘ Making a sustained effort in preserving the JS[NWTSRJSY  â&#x20AC;˘ Using environment friendly, energy JKĂ HNJSYFSIXFKJUWTHJXXJX  â&#x20AC;˘ Promoting transparency in disclosure and WJUTWYNSLUWTHJIZWJX  â&#x20AC;˘ Getting our employees involved and sensitized at our communities and develop as better leaders. In order to accomplish the above, we are building increased commitment at all levels

in the organization to operate our business in an economically, socially and environmentally sustainable manner, while recognizing the interests of all stakeholders. Weblink to download the CSR Policy available on the Companyâ&#x20AC;&#x2122;s website is as under http://www.cgglobal.com/frontend/ Crompton.aspx?cnl2=Hzywp8VdQN4=

2. THE COMPOSITION OF THE CSR COMMITTEE The Committee comprised of the following )NWJHYTWXFXTS­2FWHM­ â&#x20AC;˘ 2X­7FRSN­3NWZQF (MFNWUJWXTS3TS Executive Independent Director) â&#x20AC;˘ 2W­,FZYFR­9MFUFW 3TS*]JHZYN[J)NWJHYTW â&#x20AC;˘ 2W­8MNWNXM­&UYJ 3TS*]JHZYN[J Independent Director) 7JXNLSJI\JK­&UWNQ­ â&#x20AC;˘ )W­;FQJSYNS­[TS­2FXXT\ 3TS*]JHZYN[J Independent Director)

DETAILS OF FUNDS SPENT ON CSR (H in crore)

CSR PROJECT OR ACTIVITY SECTOR IN WHICH IDENTIFIED PROJECT IS COVERED

PROJECTS OR PROGRAMS 1. LOCAL AREA OR OTHER 2. SPECIFY THE STATE AND DISTRICT WHERE PROJECTS OR PROGRAMS WERE UNDERTAKEN

Education and skill development for youth

Education and employable skill enhancement

Maharashtraâ&#x20AC;&#x201D; Nashik and Mumbai Madhya Pradeshâ&#x20AC;&#x201D; Bhopal and Gwalior



1.29

Direct and through implementing agencies (Agastya International Foundation, PRATHAM, 3.43 Teach for India)

Community Development

Women Empowerment, Community Level Initiatives, Community Health, Supporting to Rural Community Infrastructure

Maharashtraâ&#x20AC;&#x201C;Nashik and Mumbai

2.72

0.17

0.73 Direct

Health Initiative

Preventive Community Health Care â&#x20AC;&#x201C; Mother and Child Health Care

Maharashtraâ&#x20AC;&#x201C;Nashik, Aurangabadâ&#x20AC;&#x201C;Ahmednagar Madhya Pradeshâ&#x20AC;&#x201C;Bhopal

1.36



Sustainability

Tree Plantation, Promote Horticulture, Water Resource Conservation and Disaster Management (response to drought, earthquake etc.)

Pan India

0.34

0.07

0.07 Direct

Administrative Expenses

(TTWINSFYJFSI management of CSR initiatives

Pan India

0.34

0.11

1.23 Direct

6.81

2.29

Total

44 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

AMOUNT OUTLAY AMOUNT SPENT ON THE CUMULATIVE (BUDGET) PROJECT OR PROGRAMS EXPENDITURE PROJECT OR (DIRECT EXPENDITURE UPTO REPORTING PROGRAM-WISE AND OVERHEADS) PERIOD

AMOUNT SPENT DIRECT OR THROUGH IMPLEMENTING AGENCY

Through implementing agencies (Avantha 11.43 Foundation)

16.89


3.AVERAGE NET PROFIT OF THE COMPANY FOR LAST THREE FINANCIAL YEARS: IHWTWJ *]HQZINSLUWTĂ YXTKIJRJWLJI consumer products business)

4.PRESCRIBED CSR EXPENDITURE (TWO PER CENT OF THE AMOUNT AS IN ITEM 3 ABOVE): I6.81 crore

Health Activists), training of young instructors in Mobile Science Lab project etc. Key highlights of the CSR activities undertaken during FY2017 are given below:

EDUCATION AND VOCATIONAL SKILLS DEVELOPMENT EDUCATION

â&#x20AC;˘

5. DETAILS OF CSR SPENT DURING THE FINANCIAL YEAR (a)9TYFQFRTZSYYTGJXUJSYKTWYMJĂ SFSHNFQ year: I6.81 crore (b) Amount unspent, if any: IHWTWJ (c) Manner in which the amount was spent IZWNSLYMJĂ SFSHNFQ^JFW7JKJWYTIJYFNQX given in Table 1 of Annexure 2. In FY2017, besides Health initiatives, CG MFXXNLSNĂ HFSYQ^HTSYWNGZYJINSYMJFWJFTK education and skill development for youth. Though the Company recognizes the need, MT\J[JWNYHTZQISTYKZQĂ QQYMJ(87XUJSYFX budgeted, on account of various divestments and debt reduction plans initiated by the Company during the last two years, with the purpose to focus its synergies on its core operations and markets in India. In line with this objective, new strategies were introduced leading to restructuring of the projects under operation with a view to ramp up the Companyâ&#x20AC;&#x2122;s CSR initiatives in line with the CSR philosophy of the Company and in a focused, structured and systematic way to ensure maximum positive impact to the communities in the future. Further, the Company has given its Ă SFSHNFQHTRRNYRJSYXKTWYMJSJ\NSNYNFYN[JX undertaken during the year under review towards community development and sustainability, whose lead time goes beyond FY2017 and will fully mature in the years to come.

â&#x20AC;˘

â&#x20AC;˘

OVERVIEW OF THE PROGRAMS AND PROJECTS UNDERTAKEN Empowerment and sustainability were the key project outcomes achieved through our CSR initiatives. Implementing partner organizations strived to empower projectsâ&#x20AC;&#x2122; GJSJĂ HNFWNJXG^IJ[JQTUNSLHFUFHNYNJXXPNQQX and knowledge in the area of marketing, micro entrepreneurship, health care management for ASHA (Accredited Social

â&#x20AC;˘

With the help of the organization PRATHAM, an implementing partner, remedial education classes were conducted at Kanjur village in Mumbai. Children studying in nearby municipal and low income schools attend these classes in two batches across three centres. Through PRATHAM, CG has reached out to more than 100 children to enhance their learning abilities which will enable them to bridge the gap between their current and expected learning abilities. The teachers are also from the same community and their skills are sharpened under â&#x20AC;&#x2DC;Train the Trainersâ&#x20AC;&#x2122; program conducted by PRATHAM. Two â&#x20AC;&#x2DC;community based librariesâ&#x20AC;&#x2122; are also being operated by PRATHAM at two CG centreâ&#x20AC;&#x2122;s covering more than 200 children from the community. â&#x20AC;&#x2DC;Parents Education Moduleâ&#x20AC;&#x2122; was introduced through which parents of 104 children were trained in basics of language and mathematics. Science subject is promoted through the concept of â&#x20AC;&#x2DC;Mobile Science Labsâ&#x20AC;&#x2122; by Agastya International Foundation (Agastya). CG has been associated with &LFXY^FXNSHJ­^JFWXFSINS+>NY reached out to more than 6,000 students in 60 schools providing them with approximately 10 exposures each, in Nashik, Bhopal and Gwalior. CG partnered with two members of â&#x20AC;&#x2DC;Teach for Indiaâ&#x20AC;&#x2122; with the aim to create a difference in the education system. This project helped more than 80 students of Nehru Nagar Municipal School in Mumbai. Industry professionals have made their contributions towards this project by working as full time municipal school teachers. With an objective of Quality Education, CG contributed towards refurbishment TKĂ&#x201A;TTWNSLHQFXXWTTRUFNSYNSLXHNJSHJ laboratory and toilet for girls of Zilla Parishad Schools in Ahmednagar and Gwalior.

DIRECTORS' REPORT & ANNEXURES 45


VOCATIONAL SKILLS DEVELOPMENT:

â&#x20AC;˘

â&#x20AC;˘

â&#x20AC;˘

In order to upgrade skills of ITI students, CG conducted trainings on basics of electrical and transformer winding at the Mulund ITI in Mumbai with 20 youth from the community. Fire Safety training was HTSIZHYJIFY2ZQZSI.9.FSIT[JW students attended it. Employability skill training was conducted at Nashik, Satpur ITI covering 80 students of 2nd year. A transformer winding lab is being set up at Gwalior ITI to enable the students to learn basics of transformer winding. CG is also considering absorbing these trained students in CG plants on completion of their ITI course. CG is looking at signing long term MOUs with the three ITIs located FY2ZQZSI2ZRGFN8FYUZW3FXMNPFSI Gwalior for sustained development. CG has implemented â&#x20AC;&#x2DC;National Employability Enhancement Missionâ&#x20AC;&#x2122; (NEEM)â&#x20AC;&#x201D;skills enhancement initiative of Government of India, at its LT Motors Division, Goa. Under this scheme youth are being trained by a blend of technical RTIZQJXFSIXJQKIJ[JQTURJSYFQHTZWXJX 2TWJYMFSGJSJĂ HNFWNJXNJ^TZYM and women were trained in courses such as Tally and accountancy, beauty and wellness, tailoring and fashion designing, basic computers with personality development, household electrician works, advanced mobile repairing, cloth bag making etc. across various locations such as Bhopal, Aurangabad, Mumbai and Nashik. The jute bag production unit established in previous year is now continuing to produce jute bags and participate in local exhibitions KTWXFQJ2TWJYMFS GJSJĂ HNFWNJX have been able to increase the average monthly income of their family. Similarly, community based garment manufacturing unit has been set up under micro entrepreneurship project at Ambebahula village, Nashik.

COMMUNITY BASED PREVENTIVE HEALTH CARE INITIATIVE

â&#x20AC;˘

CG has initiated â&#x20AC;&#x2DC;Community based Preventive Health Care Projectâ&#x20AC;&#x2122; with the focus on Maternal and Child Health. Since &UWNQ­YMNXUWTOJHY\FXNRUQJRJSYJI in 43 villages and two urban slums at four sites viz. Mandideep (Madhya Pradesh)

46 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

and Ahmednagar, Aurangabad and Nashik (Maharashtra) through implementing organization, Avantha Foundation. Health education sessions were conducted in each village for pregnant and lactating mothers, reaching out to 3,273 women by forming a group of 30 women.

â&#x20AC;˘

â&#x20AC;˘

VHSNC (Village Health Sanitation and Nutrition Committee) meetings with an TGOJHYN[JTK&SYN3FYFQ(FWJ &3(FSI 5TXY3FYFQ(FWJ 53(\JWJKFHNQNYFYJI NS[NQQFLJX\NYMUFWYNHNUFYNTSTK HTRRNYYJJRJRGJWXLJSJWFQFSI special health camps were conducted HT[JWNSLRTWJYMFSUFYNJSYXFSI cases were referred further. 89 youth groups were formed and 43 â&#x20AC;&#x2DC;Life 8PNQQX*IZHFYNTS¸KTQQT\ZURJJYNSLX\JWJ organized, reaching out to 2,126 girls and GT^X.WTS+TQNH&HNI .+&9FGQJYX \JWJINXYWNGZYJIYTFITQJXHJSYLNWQX and 308 pregnant mothers.

COMMUNITY DEVELOPMENT, SUSTAINABILITY AND OTHER INITIATIVES With the aim of improving lives of communities around our manufacturing locations and responding to the local needs of remote villages, CG achieved the following: â&#x20AC;˘ 5WT[NIJIĂ SFSHNFQFXXNXYFSHJKTWIWTZLMY relief in the area of Beed, Satara and other drought prone areas in Maharashtra. â&#x20AC;˘ Planted more than 1,600 trees pan India on the occasion of World Environment Day. â&#x20AC;˘ Organized Entrepreneurship refresher training for the Self Help Groups of Mumbai to mark World Womenâ&#x20AC;&#x2122;s Day. â&#x20AC;˘ Supported National level competition of Kayaking & Canoeing (water sports) in Bhind district of Madhya Pradesh, organized by the District Collector. â&#x20AC;˘ Refurbished infrastructure for better hygiene conditions at a school in Dighi village, Aurangabad where CG volunteers are actively involved. â&#x20AC;˘ Due to its long term association with Satpur ITI, Nashik, on request of the Principal, CG installed water coolers in the ITI for better drinking water facility for students. â&#x20AC;˘ Supported the Centre for Social Action organization to promote vocational skill among community youth, empowerment of domestic workers and promote

civic responsibility among children at community level.

WAY AHEAD Community involvement and stakeholder engagement are key requisites for implementing social development projects and other structured CSR projects. CG has developed deep rooted CSR activities at community level in past three years. In FY2018, CG continues to focus on engagement of community stakeholders in social development projects so that they own the process and endeavor to strengthen the Village Education Committee (VEC) as well as Parent Teacher Association (PTA) so that community and school system can work together. CG also continues to support the projects on science in secondary schools FSIXPNQQZULWFIFYNTSTKXYZIJSYX8NRNQFW UWTOJHYXTSXPNQQZULWFIFYNTSTK.9.XYZIJSYX will also be replicated in Goa, Bhopal and Gwalior in the coming year. Under this project, transformer winding curriculum will be introduced and developed in ITI along with an implementation of Train the Trainer (TOT) activities for ITI faculty. Special attention will be given on industrial safety and soft skills training for students and faculties in ITI. Considering the need for water resource development, CG envisages to support water resource management projects at HTRRZSNY^QJ[JQFYNIJSYNĂ JIQTHFYNTSX\MNHM would help conserve water through effective rainwater harvesting. CG will also continue to encourage its employees to participate in CSR activities and develop them as an effective lever to make it a way of life in the organization. RAMNI NIRULA Chairperson, CSR Committee (DIN: 00015330)

K N NEELKANT CEO & Managing Director (DIN: 05122610) New Delhi, 26 May 2017


ANNEXURE 3 The ratio of the remuneration of each director to the median employeeâ&#x20AC;&#x2122;s remuneration and other details in terms of sub-section 12 of Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014:

4KĂ HJW(MNJK*]JHZYN[J4KĂ HJW(TRUFS^ 8JHWJYFW^TW2FSFLJWNKFS^NSYMJĂ SFSHNFQ year under review are provided in Table 1 below.

Note: The information provided below is on stand-alone basis for Indian Listed entity.

4. The number of permanent employees on the rolls of Company as on ­2FWHM­ FXFLFNSXYFXTS ­2FWHM­

1. Details of the ratio of remuneration of each Director to the median remuneration of the JRUQT^JJXTKYMJ(TRUFS^KTWYMJĂ SFSHNFQ year ended 31 March 2017 are provided in Table 1 below. 2. Details of the percentage increase in remuneration of each Director, Chief Financial

3. The median remuneration of employees decreased by 6.77% as compared to UWJ[NTZXĂ SFSHNFQ^JFW

FS^J]HJUYNTSFQHNWHZRXYFSHJXKTWNSHWJFXJNS the managerial remuneration: Average increase in salary of Companyâ&#x20AC;&#x2122;s employees was 11.16%. On the other hand, overall managerial remuneration decreased G^ HTRUFWJIYTUWJ[NTZXĂ SFSHNFQ^JFW 6. Remuneration is as per the Remuneration Policy of the Company. On behalf of the Board of Directors GAUTAM THAPAR Chairman (DIN: 00012289) New Delhi, 26 May 2017

5. Average percentile increase already made in the salaries of employees other than the RFSFLJWNFQUJWXTSSJQNSYMJQFXYĂ SFSHNFQ year and its comparison with the percentile increase in the managerial remuneration and OZXYNĂ HFYNTSYMJWJTKFSIUTNSYTZYNKYMJWJFWJ

01

RATIO OF THE REMUNERATION OF EACH DIRECTOR TO THE MEDIAN REMUNERATION OF ALL THE EMPLOYEES OF THE COMPANY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 AND THE PERCENTAGE INCREASE IN REMUNERATION OF EACH DIRECTOR, CHIEF FINANCIAL OFFICER, CHIEF EXECUTIVE OFFICER, COMPANY SECRETARY IN THE FINANCIAL YEAR UNDER REVIEW: NAME OF DIRECTOR / KEY MANAGERIAL PERSONNEL

DESIGNATION

RATIO OF REMUNERATION OF DIRECTOR TO MEDIAN REMUNERATION OF ALL EMPLOYEES

% INCREASE / (DECREASE) IN COMPARISON TO PREVIOUS FINANCIAL YEAR

2W­,FZYFR­9MFUFW

3TS*]JHZYN[J (MFNWRFS





2W­0­3­3JJQPFSY

*]JHZYN[J (*4FSI2FSFLNSL)NWJHYTW



7JKJW3TYJ NN

2W­2FIMF[­&HMFW^F@

*]JHZYN[J)NWJHYTW´+NSFSHJFSI(+4



7JKJW3TYJ NN

2W­8MNWNXM­&UYJ $

3TS*]JHZYN[J .SIJUJSIJSY





2W­8FSOF^­1FGWTT

3TS*]JHZYN[J .SIJUJSIJSY

3.20



2X­2JMJW­5ZIZROJJ#

3TS*]JHZYN[J .SIJUJSIJSY



7JKJW3TYJ NN

2X­7FRSN­3NWZQF

3TS*]JHZYN[J .SIJUJSIJSY



7JKJW3TYJ NN

)W­;FQJSYNS­[TS­2FXXT\

3TS*]JHZYN[J .SIJUJSIJSY





)W­4RPFW­,TX\FRN

3TS*]JHZYN[J





2W­'­-FWNMFWFS

3TS*]JHZYN[J





2W­2FSTO­0TZQ

Company Secretary

NA

7JKJW3TYJ NN

(@) Appointed as Executive Directorâ&#x20AC;&#x201D;Finance w.e.f. 1 April 2016 ($) Resigned as Non-Executive Independent Director w.e.f. 1 April 2017 (#) Resigned as Non-Executive Independent Director w.e.f. 28 May 2016 (*) Appointed as Non-Executive Independent Director w.e.f. 6 April 2016 Notes: (i) For the aforesaid purposes, median remuneration has been computed by ascertaining the Cost to Company of all employees of the Company as on 31 March 2017, in all categories, whether workmen or white collar employees. Remuneration includes variable pay paid during the year under review. (ii) Mr K N Neelkant and Mr Manoj Koul were employed for part of FY2016, Ms Pudumjeeâ&#x20AC;&#x2122;s tenure was associated with the Company for part of FY2017 and Ms Ramni Nirula was appointed in FY2017, hence their remuneration figures are not comparable. Further, Mr Madhav Acharya received remuneration in FY2016 as CFO of the Company and in FY2017 as Executive Directorâ&#x20AC;&#x201D;Finance and CFO of the Company, hence his remuneration is not comparable.

DIRECTORS' REPORT & ANNEXURES 47


ANNEXURE 4 FORM NO. MR-3 Secretarial Audit Report For the year ended 31 March 2017 [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, The Members, CG Power and Industrial Solutions Limited 6th Floor CG House, Dr Annie Besant Road Worli, Mumbai 400 030. We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by CG Power and Industrial Solutions Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conduct / statutory compliances and expressing our opinion thereon. 'FXJITSTZW[JWNà HFYNTSTKYMJ(TRUFS^¸X books, papers, minute books, forms and WJYZWSXà QJIFSITYMJWWJHTWIXRFNSYFNSJI by the Company and also the information UWT[NIJIG^YMJ(TRUFS^NYXTKà HJWXFLJSYX and authorized representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit period covering the Financial ^JFWJSIJI­2FWHM­ &ZINY5JWNTI complied with the statutory provisions listed hereunder and also that the Company has UWTUJW'TFWIUWTHJXXJXFSIHTRUQNFSHJ mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: We have examined the books, papers, RNSZYJGTTPXKTWRXFSIWJYZWSXà QJIFSI other records maintained by the Company KTWYMJà SFSHNFQ^JFWJSIJI­2FWHM­ according to the provisions of: 1. The Companies Act, 2013 (the Act) and the WZQJXRFIJYMJWJZSIJW 2. The Securities Contracts (Regulation) &HY ·8(7&¸FSIYMJWZQJXRFIJYMJWJ ZSIJW

48 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

3. The Depositories Act, 1996 and the 7JLZQFYNTSXFSI'^JQF\XKWFRJIYMJWJ ZSIJW 4. Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and external Commercial Borrowings. 5. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (â&#x20AC;&#x2DC;SEBI Actâ&#x20AC;&#x2122;): a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 as FRJSIJIKWTRYNRJYTYNRJ b. The erstwhile Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 and Securities and Exchange Board of India (Prohibition TK.SXNIJW9WFINSL7JLZQFYNTSX FX FRJSIJIKWTRYNRJYTYNRJ c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (Not applicable to the Company during the &ZINY5JWNTI  d. The Securities and Exchange Board of .SINF 8MFWJ'FXJI*RUQT^JJ'JSJĂ YX Regulations, 2014 (Not applicable to the (TRUFS^IZWNSLYMJ&ZINY5JWNTI  e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the (TRUFS^IZWNSLYMJ&ZINY5JWNTI  f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing \NYMHQNJSY  g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the (TRUFS^IZWNSLYMJ&ZINY5JWNTI 

h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not applicable to the Company during the Audit Period). 6. We further report that having regard to the compliance system prevailing in the Company and on examination of the relevant documents and records in pursuance thereof, the Company has complied with the following QF\XFUUQNHFGQJXUJHNà HFQQ^YTYMJ(TRUFS^ a.9MJ*QJHYWNHNY^&HYFSI7ZQJX b.*]UQTXN[JX&HYFSI7ZQJX c. Batteries (Management and Handling) 7ZQJX  d.5JYWTQJZR&HYFSI7ZQJX e. 9MJ.SINFS'TNQJWX&HYFSI7ZQJX  f.*XXJSYNFQ(TRRTINYNJX&HY We have also examined compliance with the applicable clauses of the following: i. Secretarial Standards issued by The Institute of Company Secretaries of India 88´FSI88´ ii. The Securities and Exchange Board of India (Listing Obligations and Disclosure 7JVZNWJRJSYX7JLZQFYNTSXFX amended from time to time. During the Audit Period, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above. We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, 3TS*]JHZYN[J)NWJHYTWXFSI.SIJUJSIJSY Directors. Though the Company is in the UWTHJXXTKà QQNSLZUYMJHFXZFQ[FHFSH^ caused due to resignation of an Independent Director on April 1 2017, all other changes in the composition of the Board of Directors and Committees thereof that took place during the period under review were carried out in compliance with the provisions of the Act / Regulations. Adequate notice is given to all directors to schedule the Board and Committee Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking


and obtaining further information and HQFWNÁHFYNTSXTSYMJFLJSIFNYJRXGJKTWJYMJ meeting and for meaningful participation at the meeting. During the Audit Period, all the decisions in the Board Meetings and Committee Meetings were carried unanimously as recorded in the Minutes of the Meetings of the Board of Directors and Committees of the Board, as the case may be. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the Audit Period the Company has:

a. Changed it’s name from Crompton Greaves Limited to CG Power and Industrial Solutions Limited and made consequential alterations to Memorandum of Association and Articles of Association and other documents of the Company. b. Sold its B2B automation business comprising of ZIV Aplicaciones y Tecnologia S.L. Spain and its Subsidiaries along with the related automation businesses in UK, Ireland, France and India. Pramod S. Shah & Associates (Practising Company Secretaries) PRAMOD SHAH—PARTNER FCS No.: 334 CP No.: 3804 Mumbai, 10 May 2017

ANNEXURE A This Report is to be read with our letter of even date which is annexed as Annexure-A and Forms an integral part of this report. To, Members, CG Power and Industrial Solutions Limited. Our Report of even date is to be read with this letter. 1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. 2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. 9MJ[JWNÁHFYNTS\FXITSJTSYJXYGFXNXYT JSXZWJYMFYHTWWJHYKFHYXFWJWJÂJHYJINS Secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.

4. Where ever required, we have obtained the Management representation about the Compliance of laws, rules and regulations and happenings of events etc 5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management. Our examination was limited to YMJ[JWNÁHFYNTSTKUWTHJIZWJTSYJXYGFXNX 6. The Secretarial Audit report is neither an assurance as to the future viability of the (TRUFS^STWTKYMJJKÁHFH^TWJKKJHYN[JSJXX with which the management has conducted the affairs of the Company. PRAMOD SHAH & ASSOCIATES Practicing Company Secretaries Pramod Shah Partner Fcs No.: 334 Cp No.:3804 Mumbai, 10 May 2017

3. <JMF[JSTY[JWNÁJIYMJHTWWJHYSJXXFSI FUUWTUWNFYJSJXXTKÁSFSHNFQWJHTWIXFSI Books of Accounts of the Company.

DIRECTORS' REPORT & ANNEXURES 49


ANNEXURE 5 FORM NO. MGT â&#x20AC;&#x201C; 9 EXTRACT OF ANNUAL RETURN as on the financial year ended 31 March 2017 [Pursuant to Section 92(3) of the Companies Act, 2013, and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I

REGISTRATION AND OTHER DETAILS

(i) CIN

L99999MH1937PLC002641

(ii) Registration Date

­&UWNQ­

(iii) Name of the Company

CG Power and Industrial Solutions Limited

N[(FYJLTW^8ZG(FYJLTW^TKYMJ(TRUFS^

Public Company limited by shares

[&IIWJXXTKYMJ7JLNXYJWJITKĂ HJFSIHTSYFHYIJYFNQX

6th Floor, CG House, Dr. A. B. Road, Worli, Mumbai 400 030 Tel No.: +91 22 2423 7777 Fax: +91 22 2423 7733

(vi) Whether listed company

Yes

(vii) Name, Address and Contact details of Registrar and Transfer Agent, if any

Datamatics Financial Services Limited Unit: CG Power and Industrial Solutions Limited Address:5QTY3T'5FWY'(WTXXQFSJ2.)(2FWTQ Andheri (East), Mumbai 400 093. Tel:YT Fax:+ 91 22 6671 2230 E-mail: cginvestors@dfssl.com Contact person:2W­8FYNXM­5FYNQ

II

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY | ALL THE BUSINESS ACTIVITIES CONTRIBUTING 10% OR MORE OF THE TOTAL TURNOVER OF THE COMPANY

SR NO

NAME AND DESCRIPTION OF MAIN PRODUCTS / SERVICES

NIC CODE OF THE PRODUCT / SERVICE

% TO TOTAL TURNOVER OF THE COMPANY

1

Low Tension Motors

27103

36.81

2

Power Transformers and Reactors

27102



3

Switchgears

27900



50 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


III

PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SR NO

NAME AND ADDRESS OF THE COMPANY

CIN / GLN

HOLDING / SUBSIDIARY / ASSOCIATE

% OF SHARES HELD

APPLICABLE SECTION

1

(WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI

:2-51(

2

(,55.&IMJXN[J5WTIZHYX1NRNYJI

:,&51(

Subsidiary

100.00

2(87)

Subsidiary

81.42

3

CG Power Solutions Limited

2(87)

U40300MH2012PLC228170

Subsidiary

100.00

4

2(87)

CG Drives & Automation Germany GmbH

Not Applicable

Subsidiary

100.00

2(87)



CG Drives & Automation Netherlands BV

Not Applicable

Subsidiary

100.00

2(87)

6

CG Drives & Automation Sweden AB

Not Applicable

Subsidiary

100.00

2(87)

7

CG Electric Systems Hungary ZRT

Not Applicable

Subsidiary

100.00

2(87)

8

CG Holdings Belgium NV

Not Applicable

Subsidiary

100.00

2(87)

9

(,,FS_,JSJWFYTWFSI2TYTW1NRNYJI1NFGNQNY^(TRUFS^

Not Applicable

Subsidiary

100.00

2(87)

10

CG Industrial Holdings Sweden AB

Not Applicable

Subsidiary

100.00

2(87)

11

CG International BV

Not Applicable

Subsidiary

100.00

2(87)

12

CG Middle East FZE

Not Applicable

Subsidiary

100.00

2(87)

13

CG Power Solutions UK Ltd

Not Applicable

Subsidiary

100.00

2(87)

14

CG Power USA Inc

Not Applicable

Subsidiary

100.00

2(87)



CG Holdings Americas, LLC

Not Applicable

Subsidiary

100.00

2(87)

16

CG Power Americas, LLC

Not Applicable

Subsidiary

100.00

2(87)

17

CG Solutions Americas, LLC

Not Applicable

Subsidiary

100.00

2(87)

18

QEI, LLC

Not Applicable

Subsidiary

100.00

2(87)

19

CG Power Systems Belgium NV

Not Applicable

Subsidiary

100.00

2(87)

20

CG Power Systems Canada Inc

Not Applicable

Subsidiary

100.00

2(87)

21

CG Power Systems Ireland Ltd

Not Applicable

Subsidiary

100.00

2(87)

22

CG Sales Networks France SA

Not Applicable

Subsidiary

99.70

2(87)

23

CG Service Systems France SAS

Not Applicable

Subsidiary

100.00

2(87)

24

CG International Holdings Singapore PTE LTD

Not Applicable

Subsidiary

100.00

2(87)



Crompton Greaves Sales Networks Malaysia Sdn. Bhd.

Not Applicable

Subsidiary

100.00

2(87)

26

Microsol Ltd

Not Applicable

Subsidiary

100.00

2(87)

27

PT CG Power Systems Indonesia

Not Applicable

Subsidiary



2(87)

28

CG Power Solutions Saudi Arabia Ltd

Not Applicable

Subsidiary



2(87)

29

PT Crompton Prima Switchgear Indonesia

Not Applicable

Joint Venture



2(87)

30

Saudi Power Transformers Company Ltd

Not Applicable

Associate

49.00

2(6)

31

CG International BV TR & Cont. Pvt. Co. LLC

Not Applicable

Associate

49.00

2(6)

32

00*Q+N/FUFS

Not Applicable

Associate

40.00

2(6)

Notes: 1. Pursuant to the divestment of Automation Business by the Company, CG Automation Systems UK Ltd, ZIV Aplicaciones y Tecnologia S.L.U., ZIV Communication S A U, ZIV Do Brasil Ltda, ZIV Grid Automation S L U, ZIV Metering Solutions S L U, ZIV I+D Smart Energy Networks, ZIV France S.A.U, CG Power Automation Limited (incorporated on 8 October 2016) and ZIV Automation India Limited (Incorporated on 18 November 2016), ceased to be subsidiaries of the Company during FY2017. 2. CG Holdings Hungary Kft changed its name to â&#x20AC;&#x2DC;CG-Ganz Generator and Motor Limited Liability Companyâ&#x20AC;&#x2122; with effect from 26 September 2016. 3. CG Power Systems Brazil Ltda ceased to be subsidiary of the Company on 21 December 2016 and Microsol Ltd ceased to be subsidiary of the Company on 26 April 2017, upon liquidation. 4. During the year, CG Holdings Americas LLC, CG Power Americas LLC, CG Solutions Americas LLC and QEI LLC were incorporated as overseas step down subsidiaries of the Company. 5. Address of the entities mentioned herein above is provided in the section titled â&#x20AC;&#x2DC;Establishmentsâ&#x20AC;&#x2122; of this Annual Report. 6. Pauwels Middle East Trading & Contracting Pvt Co LLC changed its name to â&#x20AC;&#x2DC;CG International BV TR & Cont. Pvt. Co. LLCâ&#x20AC;&#x2122; with effect from 10 October 2016. *Under process of name change

DIRECTORS' REPORT & ANNEXURES 51


IV

SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY) (A) CATEGORY-WISE SHAREHOLDING (fractions rounded off to two decimal places)

SR NO CATEGORY OF SHAREHOLDER

NUMBER OF SHARES HELD AT THE BEGINNING OF THE YEAR

NUMBER OF SHARES HELD AT THE END OF THE YEAR

Demat

Physical

Total

% Of Total Shares

Demat

Physical

Total

%Of Total Shares

% CHANGE DURING THE YEAR

A

Promoters

1

Indian

a

Individuals / HUF

0

0

0

0.00

0

0

0

0.00

0.00

b

Central Government

0

0

0

0.00

0

0

0

0.00

0.00

c

State Government(s)

0

0

0

0.00

0

0

0

0.00

0.00

d

Bodies Corporate

215,451,070

0

215,451,070

34.38

215,451,070

0

215,451,070

34.38

0.00

e

Banks / FI

0

0

0

0.00

0

0

0

0.00

0.00

f

Any other (specify)

0

0

0

0.00

0

0

0

0.00

0.00

215,451,070

0

215,451,070

34.38

215,451,070

0

215,451,070

34.38

0.00

Subtotal (A)(1) 2

Foreign

a

NRIs—Individuals

0

0

0

0.00

0

0

0

0.00

0.00

b

Other—Individuals

0

0

0

0.00

0

0

0

0.00

0.00

c

Bodies corporate

0

0

0

0.00

0

0

0

0.00

0.00

d

Banks / FI

0

0

0

0.00

0

0

0

0.00

0.00

e

6ZFQNÁJI+TWJNLSNS[JXYTW

0

0

0

0.00

0

0

0

0.00

0.00

f

Any other (specify)

0

0

0

0.00

0

0

0

0.00

0.00

Sub Total (A)(2)

0

0

0

0.00

0

0

0

0.00

0.00

215,451,070

0

215,451,070

34.38

215,451,070

0

215,451,070

34.38

0.00

157,925,595

5,166

157,930,761

25.20

147,662,100

5,166

147,667,266

23.56

-1.64

561,451

79,360

640,811

0.10

615,564

79,360

694,924

0.11

0.01

Total Shareholding of Promoter and Promoter Group (A)=(A)(1)+(A)(2) B

Public Shareholding

1

Institutions

a

Mutual Funds

b

Banks / FI

c

Central Government

0

0

0

0.00

0

0

0

0.00

0.00

d

State Government(s)

0

0

0

0.00

0

0

0

0.00

0.00

e

Venture Capital Funds

0

0

0

0.00

0

0

0

0.00

0.00

f

Insurance Companies

42,858,353

0

42,858,353

6.84

41,320,507

0

41,320,507

6.60

-0.25

g

FIIs

86,821,513

80,362

86,901,875

13.87

132,395,912

80,362

132,476,274

21.14

7.27

h

Foreign Venture Capital Funds

0

0

0

0.00

0

0

0

0.00

0.00

i

6ZFQNÁJI+TWJNLS.S[JXYTW

0

0

0

0.00

0

0

0

0.00

0.00

j

Other (Specify)–Alternate Investment Funds Sub Total (B)(1)

2

Non-institutions

a

Bodies Corporate

i

Indian

ii

Overseas

b

Individuals

333,000

0

333,000

0.05

1,265,000

0

1,265,000

0.20

0.15

288,499,912

164,888

288,664,800

46.06

323,259,083

164,888

323,423,971

51.60

5.55

0

0

0

0.00

0

0

0

0.00

0.00

50,938,769

47,358

50,986,127

8.14

15,662,308

32,768

15,695,076

2.50

-5.63

61,250

350

61,600

0.01

61,250

350

61,600

0.01

0.00

0

0

0

0.00

0

0

0

0.00

0.00

i

Individuals—Shareholders holding nominal share capital in upto of I1 lakh

48,454,087

5,077,819

53,531,906

8.54

53,522,404

4,828,570

58,350,974

9.31

0.77

ii

Individual Shareholders holding nominal share capital in excess of I1 Lakh

14,463,773

121,520

14,585,293

2.33

9,137,326

121,520

9,258,846

1.48

-0.85

c

6ZFQNÁJIKTWJNLSNS[JXYTW

0

0

0

0.00

0

0

0

0.00

0.00

d

Other (specify)

0

0

0

0.00

0

0

0

0.00

0.00

i

NRI Rep

1,408,406

7,652

1,416,058

0.23

2,409,937

7,652

2,417,589

0.39

0.16

ii

NRI Non-Rept

1,108,878

53,098

1,161,976

0.19

1,149,809

51,895

1,201,704

0.19

0.01

iii

Foreign Bodies

0

0

0

0.00

0

0

0

0.00

0.00

iv

Foreign National

4,983

0

4,983

0.00

2,983

0

2,983

0.00

-0.00

Sub Total (B)(2)

116,440,146

5,307,797

121,747,943

19.43

81,946,017

5,042,755

86,988,772

13.88

-5.55

Total Public Shareholding (B)=(B)(1)+(B) (2)

404,940,058

5,472,685

410,412,743

65.48

405,205,100

5,207,643

410,412,743

65.48

0.00

Total(A+B)

620,391,128

5,472,685

625,863,813

99.86

620,656,170

5,207,643

625,863,813

99.86

0.00

882,329

0

882,329

0.14

882,329

0

882,329

0.14

0.00

621,273,457

5,472,685

626,746,142

100.00

621,538,499

5,207,643

626,746,142

100.00

0.00

C

Custodians for GDRs and ADRs Grand Total (A)+(B)+(C)

52 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


IV SR NO

(B) SHAREHOLDING OF PROMOTERS (fractions rounded off to three decimal places)

SHAREHOLDER’S NAME

SHAREHOLDING AS ON 01.04.2016 (ON THE BASIS OF SHAREHOLDING PATTERN OF 31.03.2016)

No. of shares

% of total shares of the company

% of shares pledged / encumbered to total shares

1

Avantha Holdings Limited

215,442,496

34.375

2

Varun Prakashan Private Limted

5,022

0.001

0

3

Avantha Realty Limited

3,552

0.001

0

IV

% CHANGE IN SHAREHOLDING DURING THE YEAR

SHAREHOLDING AS ON 31.03.2017 % of shares pledged / encumbered to total shares

% of total shares of No of shares the company

28.944 215,442,496

34.375

34.375

0.000

5,022

0.001

0

0

3,552

0.001

0

0

(C) CHANGE IN PROMOTERS’ SHAREHOLDING

9MJWJMFXGJJSSTHMFSLJNSUWTRTYJWX¸XMFWJMTQINSLIZWNSLYMJÁSFSHNFQ^JFWJSIJI2FWHM

IV SR NO

(D) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (other than Directors, Promoters and Holders of GDRs and ADRs) (fractions rounded off to two decimal places)

NAME OF THE SHAREHOLDER

SHAREHOLDING AS ON 01.04.2016 (ON THE BASIS OF SHAREHOLDING PATTERN OF 31.03.2016)

CHANGE IN SHAREHOLDING (NO OF SHARES) $

% of total shares of No of shares the company

Increase

SHAREHOLDING AS ON 31.03.2017

Decrease

% of total shares No of Shares of the company

1

HDFC Trustee Company Limited-HDFC Equity Fund

57,809,500

9.22

828,000

828,000

57,809,500

9.22

2

Reliance Capital Trustee Co. Ltd

46,569,874

7.43

13,542,790

2,395,004

57,717,660

9.21

3

Life Insurance Corporation of India

32,820,195

5.24

0

0

32,820,195

5.24

4

Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Frontline Equity Fund

28,344,638

4.52

24,261,154

26,112,163

26,493,629

4.23

5

:9.2ZQYN(FU+ZSI

11,288,444

1.80

324,000

11,511,333

101,111

0.02

6

<,.*RJWLNSL2FWPJYX8RFQQJW(TRUFSNJX+ZSI11(

8,622,451

1.38

8,128,749

1,510,541

15,240,659

2.43

7

8FRJSF8UJHNFQ8NYZFYNTSX2FZWNYNZX

8,293,085

1.32

22,513,866

0

30,806,951

4.92

8

HSBC Global Investment Funds A/C HSBCGif 2FZWNYNZX1NRNYJI

6,659,688

1.06

0

6,659,688

0

0.00

9

;FSLZFWI*RJWLNSL2FWPJYX8YTHP.SIJ]+ZSI& XJWNJXTK;FSLZFWI.SYJWSFYNTSFQ*VZNY^.SIJ]+ZSI

6,451,734

1.03

1,046,922

0

7,498,656

1.20

10

.(.(.5WZIJSYNFQ1NKJ.SXZWFSHJ(TRUFS^1NRNYJI

6,107,400

0.97

0

5,870,166

237,234

0.04

11

HDFC Standard Life Insurance Company Limited*

6,067,305

0.97

4,560,221

5,558,247

5,069,279

0.81

12

HSBC Global Investment Funds—Indian Equity*

861,627

0.14

6,659,688

500,000

7,021,315

1.12

13

Abu Dhabi Investment Authority—LGLINV*

0

0.00

8,970,000

0

8,970,000

1.43

(*) Not in the list of top 10 Shareholders as on 1 April 2016 but is one of the top 10 Shareholders as on 31 March 2017; (#) Not in the list of top 10 Shareholders as on 31 March 2017 but was one of the top 10 Shareholders as on 1 April 2016; ($) Detailed list of change in shareholding (Increase and Decrease) for each shareholder mentioned in the above table will be available for inspection at the ensuing Annual General Meeting.

DIRECTORS' REPORT & ANNEXURES 53


IV SR NO

(E) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

SHAREHOLDING OF EACH DIRECTOR AND KEY MANAGERIAL PERSONNEL

1

2W'-FWNMFWFS3TS*]JHZYN[J)NWJHYTW

i

As on 01.04.2016

ii

Date wise Increase / Decrease in Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc.)

iii

As on 31.03.2017

2

Dr V von Massow, Independent Director (GDR)

i

As on 01.04.2016

ii

Date wise Increase / Decrease in Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc.)

iii

As on 31.03.2017

V

CUMULATIVE SHAREHOLDING DURING THE YEAR

SHAREHOLDING AS ON 01.04.2016 No of Shares

% of total shares of the Company

No of Shares

% of total shares of the Company



0.00



0.00

0

0.00



0.00



0.00



0.00

2,687

0.00

2,687

0.00

0

0.00

2,687

0.00

2,687

0.00

2,687

0.00

INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING / ACCRUED BUT NOT DUE FOR PAYMENT (In H) SECURED LOAN EXCLUDING DEPOSITS

UNSECURED LOANS

DEPOSITS

TOTAL INDEBTEDNESS



Indebtedness as on 01.04.2016 1,272,714,197





ii Interest due but not paid









iii Interest accrued but not due



11,040,411



11,040,411

1,272,714,197







Addition

7,691,366,410





23,072,623,847

Reduction

2,497,090,773







Net Changes



2,323,742,607





















41,667,398

12,278,231





6,466,989,834





13,390,821,366

i Principal amount

Total (i+ii+iii) Changes in the indebtedness IZWNSLYMJĂ SFSHNFQ^JFW

Indebtedness as on 31.03.2017 i Principal amount ii Interest due but not paid iii Interest accrued but not due Total (i+ii+iii)

54 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


VI

REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

VI

(A) REMUNERATION TO MANAGING DIRECTOR, WHOLE-TIME DIRECTORS AND / OR MANAGER (In H)

SR NO

PARTICULARS OF REMUNERATION

1

Gross Salary

K N NEELKANT (CEO & MANAGING DIRECTOR)

(a) Salary as per provisions contained in section 17(1) TKYMJ.SHTRJYF]&HY G;FQZJTKUJWVZNXNYJXZX TKYMJ.SHTRJYF] Act, 1961

M ACHARYA (WHOLE-TIME DIRECTOR) TOTAL AMOUNT



28,170,036



39,600

39,600

79,200

H5WTĂ YXNSQNJZTKXFQFW^ZSIJWXJHYNTS TKYMJ .SHTRJYF]&HY







2

Stock option







3

Sweat Equity







4

Commission FX TKUWTĂ Y others (Variable Pay / Severance Pay)



Others (Provident Fund / Gratuity Fund / Super annuation Fund) Total







1,000,000

8,300,000

9,300,000

1,491,047



3,078,289



38,096,878



Notes: 1. During FY2017, Mr K N Neelkant was paid an amount of I55 lakhs towards arrears of his variable pay earned in FY2016 (upto 2 February 2016) as an employee of the Company. 2. The remuneration payable to the Managing Director and Whole-time Director of the Company was within the limits as prescribed under the Companies Act, 2013. The above remuneration excludes provision made by the Company towards variable pay for FY2017.

VI SR NO

(B) REMUNERATION TO OTHER DIRECTORS (In H)

PARTICULARS OF REMUNERATION

NAME OF DIRECTORS Mr Gautam Thapar

1

2

Mr Shirish Apte*

Dr Omkar Goswami

Mr B Hariharan

TOTAL AMOUNT

Mr Sanjay Ms Ramni Ms Meher Dr Valentin Labroo Nirula Pudumjee# von Massow

Independent Directors Fee for attending Board Meetings and Committee Meetings



120,000





180,000

200,000

40,000

100,000

640,000

Commission



3,382,000





1,213,000

1,188,000

64,000

3,767,000

9,614,000

Others



















Total (1)









1,393,000

1,388,000

104,000

3,867,000



Fee for attending Board and Committee meetings

180,000



120,000

60,000









360,000

Commission

















3,643,000

4YMJW3TS*]JHZYN[J)NWJHYTWX



















Total (2)





1,719,000











4,003,000

Total (B)=(1+2)





1,719,000



1,393,000

1,388,000

104,000

3,867,000



Others

The remuneration paid to the other Directors was within the limits prescribed under the Companies Act, 2013 and rules made thereunder. (*) Resigned w.e.f. 1 April 2017 (#) Resigned w.e.f. 28 May 2016

DIRECTORS' REPORT & ANNEXURES 55


VI

(C) REMUNERATION TO KEY MANGERIAL PERSONNEL (KMP) (other than MD / WTD / Manager) (In H)

SR NO

PARTICULARS OF REMUNERATION

NAME OF KMP Mr Manoj Koul (Company Secretary)

1

Gross Salary

a

8FQFW^FXUJWUWT[NXNTSXHTSYFNSJINS8JHYNTS TKYMJ.SHTRJYF]&HY

b

;FQZJTKUJWVZNXNYJXZX TKYMJ.SHTRJYF]&HY

c

5WTĂ YXNSQNJZTKXFQFW^ZSIJW8JHYNTS TKYMJ.SHTRJYF]&HY



2

Stock Option



3

Sweat Equity



4

Commission



4,303,429 21,600

FX TKUWTĂ Y



4YMJWX



Others ;FWNFGQJUF^



5WT[NIJSY+ZSI,WFYZNY^8ZUJW&SSZFYNTS+ZSI

 

Total

V II

PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES

TYPE

SECTION OF THE COMPANIES ACT

BRIEF DESCRIPTION

DETAILS OF PENALTY / PUNISHMENT / COMPOUNDING FEES IMPOSED

AUTHORITY (RD / APPEAL MADE, (IF NCLT / COURT) ANY, GIVE DETAILS)

A. COMPANY Penalty Punishment Compounding

NIL

B. Directors Penalty Punishment Compounding

NIL

C. Other Officers in Default Penalty Punishment Compounding

NIL

On behalf of the Board of Directors GAUTAM THAPAR Chairman (DIN: 00012289) New Delhi, 26 May 2017

56 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


ANNEXURE 6 REMUNERATION POLICY I.OBJECTIVE In terms of the requirement stated under Companies Act, 2013 and Regulation 19 of the SEBI Listing Regulations, CG Power and Industrial Solutions Limited (‘the Company’) has formulated the Remuneration Policy (‘Policy’) which deals with the remuneration of the Directors, Key Managerial Personnel (KMP), Senior Management and other employees of the Company. The objective of the Policy is to ensure that the Directors, KMPs, Senior Management and other executives of the Company are governed by a comprehensive compensation criteria that fosters meritocracy and growth of the Company and that, remuneration packages are designed to attract and retain high calibre personnel. The Policy is guided by the principles as envisaged under Section 178 of the Companies Act, 2013. The Policy has been approved by the Nomination and Remuneration Committee (‘NRC’) at its RJJYNSLMJQITS­+JGWZFW^FSIG^YMJ 'TFWIFYNYX2JJYNSLMJQITS­2FWHM­ The Policy shall be applicable only to CG India.

II. DEFINITIONS A. KEY MANAGERIAL PERSONNEL ‘Key Managerial Personnel’ (KMP) means: i.(MNJK*]JHZYN[J4KÁHJWTWYMJ2FSFLNSL Director or the Manager, ii. Company Secretary, iii.<MTQJYNRJ)NWJHYTW iv. (MNJK+NSFSHNFQ4KÁHJWFSI v.XZHMTYMJWTKÁHJWFXRF^GJUWJXHWNGJI under the Companies Act, 2013.

B. SENIOR MANAGEMENT ‘Senior Management’ mean personnel of the Company who are members of its core management team (CEO minus 1 level) excluding Board of Directors.

accordance with the provisions of Section 178 of the Companies Act, 2013 and the SEBI Listing Regulations.

III. APPOINTMENT OF DIRECTOR, KMP AND SENIOR MANAGEMENT NRC plays a critical role in the process of appointment of Directors, KMPs and Senior Management as well as reviewing the outcome of evaluation processes and resulting senior management’s compensation.

A. APPOINTMENT CRITERIA AND QUALIFICATIONS NRC shall identify and ascertain the VZFQNÁHFYNTSJ]UJWYNXJFSIJ]UJWNJSHJTKYMJ persons being considered for appointment as a Director, KMP or at Senior Management level and recommend the appointment to the Board.

B. INDEPENDENCE OF INDEPENDENT DIRECTORS In case of appointment of an Independent Director, such person shall additionally meet the requirements and procedures as stipulated in Section 149 of the Companies Act, 2013 read with Schedule IV of the said Act, Regulation 16 of the SEBI (Listing Obligations and Disclosure Requirements) 7JLZQFYNTSXF[FNQFGQJTSYMJ\JGXNYJ of the Company www.cgglobal.com and any other requirements set by the Nomination and Remuneration Committee.

IV. PROVISIONS RELATING TO REMUNERATION OF DIRECTORS, KMP AND OTHER EMPLOYEES A. REMUNERATION TO NON-EXECUTIVE DIRECTORS (INCLUDING INDEPENDENT DIRECTORS) 1. REMUNERATION / COMMISSION:

C. NOMINATION AND REMUNERATION COMMITTEE

The remuneration / commission shall be in accordance with the statutory provisions of the Companies Act, 2013, and the Rules made thereunder for the time being in force. The remuneration / commission shall be based on following principles:

‘Nomination and Remuneration Committee’ or ‘NRC’ shall mean a Committee of Board of Directors of the Company, constituted in

i. 9MJT[JWFQQHTRRNXXNTSYTGJUFNIYT3TS Executive Directors (NED) shall be within the

limits approved by the shareholders, subject YTFQNRNYSTYJ]HJJINSL TKYMJUWTÁYXTK the Company computed as per the provisions of the Companies Act, 2013. ii.*[JW^3*)XMFQQWJHJN[JFÁ]JIFRTZSY of commission, to recognise his / her position as an NED on the Board of Directors TKYMJ(TRUFS^9MJÁ]JIUF^\NQQGJ UWTUTWYNTSFYJQ^FIOZXYJI[NXF[NX)NWJHYTWX attendance. iii. An NED, who is a member of the Board Committees of the Company which are formed for statutory purposes, will receive a Á]JIFRTZSYKTWJ[JW^(TRRNYYJJ2JJYNSL attended, in addition to (ii) above. iv. An NED, who is the Company’s nominee on the Board / Committee of Directors of joint venture, subsidiary or associate companies, will receive an additional amount, for every Board / Committee meeting attended. v. An NED may further receive an additional amount, if necessary, based on his / her time and involvement with the Company’s executives, to strengthen systems and processes, contributions to strategic direction, etc. vi. Amounts at (iii), (iv) and (v) will be per diem amounts, based on an assumption of 8 hour day, computed and paid for the actual duration of the Meetings, excluding days for travel and preparatory work.

2. SITTING FEES: 9MJ3TS*]JHZYN[J)NWJHYTWXRF^WJHJN[J remuneration by way of fees for attending meetings of Board or Committee thereof, provided that, the amount of such fees shall not exceed the maximum amount as provided in the Companies Act, 2013, per meeting of the Board or Committee.

3. STOCK OPTIONS An Independent Director shall not be entitled to any stock option of the Company.

DIRECTORS' REPORT & ANNEXURES 57


B. CEO AND MANAGING DIRECTOR

D. ANNUAL REMUNERATION REVIEW

The remuneration paid to the CEO and Managing Director and revisions thereto are recommended by the NRC and approved by the Board, within the framework of shareholders’ approval. The remuneration to CEO and Managing Director shall take into account the Company’s overall performance, Managing Director’s contribution towards Company’s performance and trends in the industry in general, in a manner, which will ensure and support a high performance culture. The annual remuneration package of the CEO and Managing Director of the (TRUFS^HTRUWNXJXTKFÁ]JIXFQFW^ component, a basket of allowances / reimbursements, performance bonus or incentive / commission, housing and other HFXMFX\JQQFXSTSHFXMUJWVZNXNYJX 9MJUF^RJSYTKFXNLSNÁHFSYUFWYTK the performance bonus or incentive / commission may be delayed over a period of one or more years.

Average increase in remuneration every year would be a result of growth of economy, NSÂFYNTSRFSIFYTW^NSHWJFXJXGZXNSJXX performance, market surveys for salary projections etc. Once the overall increment budget is decided, the increment matrix would aim at creating a sharper differentiation in pay for individual performance. Internally, performance ratings of all executives would be spread across a normal distribution curve. The rating obtained by an employee will be ZXJIFXFSNSUZYYTIJYJWRNSJYMJÁYRJSYNSYT the increment matrix.

C. KEY MANAGERIAL PERSONNEL, SENIOR MANAGEMENT AND OTHER EXECUTIVES CG REWARD PHILOSOPHY Executive compensation would be guided by the external competitiveness and internal parity through benchmarking surveys.

FIXED AND VARIABLE PAY 7JRZSJWFYNTS\TZQIHTRUWNXJTKÁ]JIFSI variable components of the remuneration to ensure that employees are rewarded for professional services rendered in line with the level of expertise and skill required, as well as, to provide an incentive to pursue the goals and interests of the Company. Senior Management compensation shall comprise of a higher component of variable pay as compared to the lower levels. The variable components of the remuneration shall be determined based on the Company’s UJWKTWRFSHJÁSFSHNFQUJWKTWRFSHJFSI individual performance. Company and business performance will be measured on VZFSYNYFYN[JFSIÁSFSHNFQUFWFRJYJWX\MNQXY individual performance will be measured on qualitative attributes. The performance measurement criteria and weightages should be aligned with the benchmark study conducted across the competitive enterprises.

58 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

E. WORKMEN Workmen will be paid wages in accordance to the settlement with the recognized union of the workers as per industry practice, as applicable. Where there is no union, workmen wages are as per the industry practice and applicable law would apply. All remuneration components would be in accordance with applicable statutory compliances.

V. PROVISIONS RELATING TO LOANS AND ADVANCES TO EMPLOYEES The Company may provide loans or advances to its employees. Such loans and advances shall be governed by the provisions of the applicable HR policies, Rules of Procedure for Management and applicable provisions of the Companies Act, 2013 and Rules made thereunder.

VI. DEVIATIONS FROM THIS POLICY Deviations on elements of this policy in extraordinary circumstances, when deemed necessary in the interests of the Company, \NQQGJRFIJNKYMJWJFWJXUJHNÁHWJFXTSXYT do so in an individual case. Mumbai, 3 March 2015


ANNEXURE 7 DIVIDEND DISTRIBUTION POLICY 1. BACKGROUND ;NIJ,F_JYYJ3TYNà HFYNTS3T8*'.1&) 374,3IFYJI­/ZQ^­ Securities and Exchange Board of India, introduced a new Regulation 43A in the Securities and Exchange Board of India (Listing Obligations and Disclosure 7JVZNWJRJSYX7JLZQFYNTSXYMFY RFSIFYJXYTUQNXYJIJSYNYNJXGFXJITS the market capitalization (calculated on the GFXNXTK­2FWHMTKJ[JW^à SFSHNFQ^JFWYT formulate a Dividend Distribution Policy.

â&#x20AC;&#x2DC;Free Reservesâ&#x20AC;&#x2122; means such reserves which, as per the latest audited balance sheet of a company, are available for distribution as dividend: Provided thatâ&#x20AC;&#x201D; i. any amount representing unrealised gains, notional gains or revaluation of assets, whether shown as a reserve or otherwise, or ii. any change in carrying amount of an asset or of a liability recognized in equity, NSHQZINSLXZWUQZXNSUWTĂ YFSIQTXXFHHTZSY on measurement of the asset or the liability at fair value, shall not be treated as free reserves.

2. EFFECTIVE DATE The Board of Directors of the Company at NYXRJJYNSLMJQITS­&ZLZXY­MFX adopted the Dividend Distribution Policy of the Company as required in terms of the Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 9MJJKKJHYN[JIFYJTKYMJ)N[NIJSI )NXYWNGZYNTS5TQNH^NX­&ZLZXY­

3. OBJECTIVE Appropriation of net earnings and its allocation among the shareholders continues to be one of the important agenda items that Companies discuss at the Board levels. In order to help investors to get a clearer picture on returns from their investments in the listed entities and also identify the stocks matching their investment objectives, the market regulator the Securities and Exchange Board of India has made it mandatory for YMJYTUQNXYJIJSYNYNJXYTMF[JF)N[NIJSI Distribution Policy.

4. DEFINITIONS â&#x20AC;&#x2DC;Actâ&#x20AC;&#x2122; means the Companies Act, 2013. â&#x20AC;&#x2DC;Boardâ&#x20AC;&#x2122; means Board of Directors of the Company. â&#x20AC;&#x2DC;Companyâ&#x20AC;&#x2122; means CG Power and Industrial Solutions Limited. â&#x20AC;&#x2DC;Dividendâ&#x20AC;&#x2122; includes any interim dividend. â&#x20AC;&#x2DC;Listing Regulationsâ&#x20AC;&#x2122; means the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) 7JLZQFYNTSXFSIYMJFRJSIRJSYX thereto.

5. LEGAL FRAMEWORK The Companies Act, 2013 lays down certain provisions for declaration of dividend, which are: i.8JHYNTSUJWRNYX(TRUFSNJXYTUF^ dividends proportionately i.e. in proportion YTYMJFRTZSYUFNIZUTSJFHMXMFWJ\MJS FQQXMFWJXFWJSTYZSNKTWRQ^UFNIZUNJ pro-rata. Pro rata means in proportion or proportionately, according to a certain rate. The Board of Directors of the Company may decide to pay dividends on pro-rata basis if all the equity shares of the company are STYJVZFQQ^UFNIZU-T\J[JWNSYMJHFXJTK preference shares, dividend shall be paid at a Ă ]JIWFYJFXUJWYMJYJWRXTKNXXZJ The permission given by this Section is, however, conditional upon the Companyâ&#x20AC;&#x2122;s articles of association expressly authorising the Company in this regard. ii. Final Dividend is generally declared at an annual general meeting [Section 102(2) of the Act] at a rate not more than what is recommended by the Board in accordance with the articles of association of a Company. iii. An interim dividend is declared by the Board at any time before the closure of Ă SFSHNFQ^JFW\MJWJFXFĂ SFQIN[NIJSINX declared by the members of a Company at its annual general meeting if and only if the same has been recommended by the Board of Directors of the Company.

iv. In accordance with Section 134(3)(k) of the Act, the Board of Directors shall state in the Directorsâ&#x20AC;&#x2122; Report the amount of dividend, if any, which it recommends to be paid. The dividend recommended by the Board of Directors in the Boardâ&#x20AC;&#x2122;s Report must be â&#x20AC;&#x2DC;declaredâ&#x20AC;&#x2122; at the annual general meeting of the Company. This constitutes an item of ordinary business to be transacted at every annual general meeting. This does not apply to interim dividend. v. No dividend shall be declared or paid by YMJ(TRUFS^KTWFS^Ă SFSHNFQ^JFWJ]HJUY TZYTKYMJUWTĂ YXTKYMJ(TRUFS^KTWYMFY year arrived at after providing for depreciation in accordance with Section 123 (2) of the &HYTWTZYTKUWTĂ YXTKYMJ(TRUFS^KTWFS^ UWJ[NTZXĂ SFSHNFQ^JFW^JFWXFWWN[JIFYFKYJW providing for depreciation in accordance \NYMYMJUWT[NXNTSXTKFGT[JXZG8JHYNTS and remaining undistributed or out of both or out of moneys provided by the Central Government or a State Government for payment of dividend in pursuance of a guarantee given by the concerned Government [Section 123(1) of the Act]. vi. The Company may before the declaration TKFS^IN[NIJSINSFS^Ă SFSHNFQ^JFWYWFSXKJW XZHMUJWHJSYFLJTKNYXUWTĂ YXKTWYMFY Ă SFSHNFQ^JFWFXNYRF^HTSXNIJWFUUWTUWNFYJ to the reserves of the Company. vii. If owing to inadequacy or absence of UWTĂ YXNSFS^^JFWYMJ(TRUFS^UWTUTXJX to declare dividend out of the accumulated UWTĂ YXJFWSJIG^NYNSFS^UWJ[NTZXĂ SFSHNFQ years and transferred to reserves, such declaration of dividend shall not be made except in accordance with the Companies (Declaration and Payment of Dividend) Rules, 2014. No dividend shall be declared or paid by the Company from its reserves other than free reserves. Further the Company shall not declare dividend unless carried over previous losses and depreciation not provided in the previous year / years are set off against the UWTĂ YTKYMJ(TRUFS^KTWYMJHZWWJSY^JFW viii. Depreciation, as required under Section 123(1) of the Act has to be provided in

DIRECTORS' REPORT & ANNEXURES 59


accordance with the provisions of Schedule II to the Act. ix. If the Company fails to comply with Section 73 and 74 of the Act, relating to acceptance & repayment of deposits, no dividend shall be declared on its equity shares till such default continues. x. 9MJFRTZSYTKIN[NIJSI Ă SFQFX\JQQFX interim) shall be deposited in a separate GFSPFHHTZSY\NYMNSIF^XKWTRYMJIFYJTK declaration. [Section 123(4) of the Act] xi. Dividend has to be paid within 30 days from the date of declaration. xii. Section 24 of the Act confers on SEBI, the power of administration of the provisions UJWYFNSNSLYTSTSUF^RJSYTKIN[NIJSI xiii. If dividend has not been paid or claimed within the 30 days from the date of its declaration, the Company shall transfer the total amount of dividend which remains unpaid or unclaimed, to a special account to be opened by the Company in a scheduled bank to be called â&#x20AC;&#x153;Unpaid Dividend Accountâ&#x20AC;?. Such transfer shall be made within 7 days from the date of expiry of the said period of 30 days. xiv. Any money transferred to the unpaid dividend account of a Company in pursuance of Section 124 of Act which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company to the Investor Education and Protection Fund. xv. Any dividend payable in cash may be paid by cheque or warrant through post directed to the registered address of the shareholder who is entitled to the payment of the dividend or to his order or in any electronic mode sent YTMNXGFSPJW@8JHYNTS TKYMJ&HYB

6. PARAMETERS A. CIRCUMSTANCES UNDER WHICH DIVIDEND PAYOUT MAY OR MAY NOT BE EXPECTED Dividend payout is dependent on various factors, which are enumerated herein below in this policy document and the Board of

60 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Directors shall before taking any decision on dividend payout consider these factors in the best interest of the Company and the shareholders.

B. FINANCIAL PARAMETERS FOR DECLARING DIVIDEND The decision of the dividend payout or WJYJSYNTSTKYMJUWTĂ YXG^YMJ'TFWIXMFQQ NSYJWFQNFIJUJSITSYMJKTQQT\NSLĂ SFSHNFQ UFWFRJYJWX i. Quantum of anticipated Capital expenditure, ii.2FLSNYZIJTKWJFQN_JIUWTĂ YX iii.4UJWFYNSLHFXMĂ&#x201A;T\ QNVZNINY^ iv. Investment opportunities, v. Capacity to service interest / principal (borrowings), vi.(TXYTKGTWWT\NSLX[NXl[NXHTXYTK capital, vii. Sales volume, viii. Anticipated expenses, ix. +NSFSHNFQWFYNTX JL*58UTXYIN[NIJSI etc.

C. INTERNAL & EXTERNAL FACTORS The most important internal and external factors that affect the dividend payout are regulations (taxation, repatriation & accounting policies), industry growth rate, natural calamity, capital investment needs, UWTĂ YFGNQNY^JFWSNSLX[FWNFGNQNY^QNVZNINY^FSI HFXMĂ&#x201A;T\XĂ SFSHNFQQJ[JWFLJFSIFXXJY characteristics such as the composition of tangible and intangible assets.

D. UTILIZATION OF RETAINED EARNINGS Considering the cost of the borrowings [NXl[NXF[FNQFGQJKZSIX WJYFNSJIJFWSNSLX the quantum of reserves and available depreciation fund, the Board may decide to plough back the earnings for a particular Ă SFSHNFQ^JFWX9MJIJHNXNTSTKZYNQN_FYNTSTK the retained earnings of the Company shall GJGFXJITSYMJKTQQT\NSLKFHYTWX i.-NLMĂ SFSHNFQQJ[JWFLJ ii. Mitigate dependence on external debts iii.5QFSYJ]UFSXNTS IN[JWXNĂ HFYNTS iv. Market & product expansion v. Replacement of capital assets vi. +ZYZWNXYNH QTSLYJWRGZXNSJXXXYWFYJLNH plans vii. Such other criteria as the Board may IJJRĂ YKWTRYNRJYTYNRJ


E. ADOPTION OF PARAMETERS FOR DIVIDEND PAYOUT WITH RESPECT TO VARIOUS CLASSES OF SHARES i. The factors and parameters for declaration of dividend to different class of shares of the Company shall be in compliance with the existing laws, governing the dividend payout. ii. The parameters for declaration of dividend to different class of shares of the Company shall be same as covered above. iii. The payment of dividend shall be based on the respective rights attached to each class of shares as per their terms of issue. iv. The dividends shall be paid out of the (TRUFS^¸XINXYWNGZYFGQJUWTà YXFSITW general reserves, and shall be allocated among shareholders on a pro-rata basis according to the number of each type and class of shares held.

Policy, to give effect to any such changes / amendments. Such amended Policy shall be periodically placed before the Board for STYNSLFSISJHJXXFW^WFYNĂ HFYNTSNRRJINFYJQ^ after such changes. A dividend payout, in deviation of this policy shall be reported in the Annual Report of the Company.

10. CAUTIONARY STATEMENT: 9MJ5TQNH^WJĂ&#x201A;JHYXYMJNSYJSYTKYMJ(TRUFS^ to reward its shareholders by sharing a UTWYNTSTKNYXUWTĂ YXFKYJWWJYFNSNSLXZKĂ HNJSY funds for growth of the Company. The Company shall pursue this Policy to pay, subject to the circumstances and factors enlisted herein above, which shall be consistent with the performance of the Company over the years. KN NEELKANT CEO & Managing Director Mumbai, 30 August 2016

v.)N[NIJSI\MJSIJHQFWJIXMFQQGJĂ WXY paid to the preference shareholders of the Company as per the terms and conditions of their issue.

7. AMOUNT OF DIVIDEND: The Company shall endeavor to maintain a WJFXTSFGQJIN[NIJSIUF^TZYWFYNTXZGOJHYYT  a) capital needs of the Company, b) positive TUJWFYNSLHFXMĂ&#x201A;T\XFSIHTYMJWĂ SFSHNFQ parameters enumerated herein above.

8. POLICY EXCLUSION: The policy shall not be applicable in the KTQQT\NSLHNWHZRXYFSHJX i. Any distribution of cash as an alternative to payment of dividend by way of buyback of equity shares. ii. Distribution of dividend in kind, i.e. by issue of fully or partly paid bonus shares or other securities. iii. Determination and declaring dividend on preference shares.

9. POLICY AMENDMENTS: Any change/amendment, if required in terms of any applicable law, the CEO & Managing Director or the Chief Financial 4KĂ HJWTKYMJ(TRUFS^XMFQQGJOTNSYQ^ severally authorized to review and amend the

DIRECTORS' REPORT & ANNEXURES 61


REPORT ON CORPORATE GOVERNANCE [PURSUANT TO PART C OF SCHEDULE V OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015]

62 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


CG encourages Management independence and provides individual ŃATE>EHEPUSEPDEJ=JAOP=>HEODA@ framework of policies, standards and processes, which derive their source from the CG Values and are translated into its business practices, authorityresponsibility matrices and governance systems.

Abbreviations ‘Act’ refers to the Companies Act, 2013 and WZQJXRFIJYMJWJZSIJW ‘Listing Regulations’ refers to SEBI (Listing Obligations and Disclosure Requirements) 7JLZQFYNTSX ‘the Company’,’CG’ refers to CG Power and Industrial Solutions Limited

PHILOSOPHY ON CORPORATE GOVERNANCE The Company is devoted to premier levels of Corporate Governance and seeks to accomplish a healthy blend of performance with conformance thus creating an environment and the means through which corporate objectives are attained. The Company is committed to maintaining high standards of ethical conduct and Corporate Governance and serving its stakeholders—shareholders, employees and business partners with honesty, fairness and NSYJLWNY^9MJÁ[J(,;FQZJX´5JWKTWRFSHJ Excellence, Leading Edge Knowledge, Nurturance, Customer Orientation and Intellectual Honesty are well entrenched in the performance culture of the Company and permeate all actions of the Company and its employees. The Company strives YTFHMNJ[J\JQQIJÁSJIQJ[JQXTK'ZXNSJXX excellence by continuously benchmarking itself against global standards. Our dividend policy, the vendor development practices and YMJHZXYTRJWUWT]NRNY^NSNYNFYN[JXFQQWJÂJHY the requisite balance between the interests of our various stakeholders. These practices YWFSXQFYJNSYTFUJWKTWRFSHJGFXJIFSI UWTIZHYN[NY^TWNJSYJIHZQYZWJQJFINSLYTMNLMJW TUJWFYNTSFQJKÁHNJSHNJX As reinforcement of this commitment and as a formal expression thereof, the Company MFXHTINÁJIF·(,(TIJTK(TSIZHYFSI Business Practices’, which inculcates highest ethical and moral standards in all CG employees, both in their professional and personal lives. CG also encourages Management independence and provides NSIN[NIZFQÂJ]NGNQNY^\NYMNSFSJXYFGQNXMJI framework of policies, standards and processes, which derive their source from the CG Values and are translated into its GZXNSJXXUWFHYNHJXFZYMTWNY^WJXUTSXNGNQNY^ matrices and governance systems. Our

strong internal audit and control mechanism ensures the Company’s risk mitigation is in line with its decided business strategy. As a responsible corporate citizen, CG continues to focus on communities that surround its operations at various locations, by supporting projects and sponsoring NIJSYNÁJIHTRRZSNY^HFZXJX*RUQT^JJX are encouraged to participate in these programmes and make a difference to their communities, thus bringing pride to themselves and creating a trusting partnership between the Company and the communities. CG’s commitment to good Corporate ,T[JWSFSHJNXWJÂJHYJINSYMJKFHYYMFY the Company realizes the importance of the information requirement and therefore keeps all its stakeholders abreast with detailed information on issues concerning YMJ(TRUFS^¸XGZXNSJXXFSIÁSFSHNFQ performance through its various means of communication.

BOARD OF DIRECTORS COMPOSITION As on the date of this report, the Company’s Board of Directors comprises of nine Directors. The Company has adopted the Board Diversity Policy to ensure that the composition of the Board is optimum, GFQFSHJIFSIIN[JWXJXTFXYTGJSJÁYKWTR fresh perspectives, new ideas, vigorous challenges and broad experience. Details of the composition and Board and Committee representations of the Board Members are provided in Table 1 in this Report.

OTHER DIRECTORSHIPS &XTS­2FWHM­FXUJWYMJINXHQTXZWJX received from the Directors, none of the Directors of the Company is a Director in more than twenty companies (including

REPORT ON CORPORATE GOVERNANCE 63


ten public limited companies) or act as an Independent Director in more than seven listed companies. 9MJ(*4 2FSFLNSL)NWJHYTWFSI<MTQJ time Director of the Company do not hold any Independent Director position on any listed Companyâ&#x20AC;&#x2122;s Board. Further none of the Director acts as a member of more than ten Committees or HMFNWUJWXTSTKRTWJYMFSĂ [J(TRRNYYJJX across all public limited companies in which they are a Director. For the purpose of reckoning Committee Chairperson / Membership only Audit Committee and Stakeholdersâ&#x20AC;&#x2122; Relationship Committee have been considered.

BOARD MEETINGS The dates of the Board Meetings are UWJXHMJIZQJIFSIHTRRZSNHFYJIYTYMJ Directors in advance. Board Meetings are convened at appropriate intervals with a maximum time gap of not more than 120 days between two consecutive meetings by giving advance notice alongwith agenda papers to the Directors. In case of exigencies or urgency of matters, resolutions are passed by circulation for such matters as permitted G^QF\FSIFWJHTSĂ WRJIFYYMJXZGXJVZJSY Meeting.

01

The Board critically evaluates the Companyâ&#x20AC;&#x2122;s strategic direction, risks and opportunities, key projects in Mergers & &RFQLFRFYNTSXNS[JXYRJSYXĂ SFSHNFQ performance, asset optimization, management policies and their effectiveness. The Board has dedicated meetings for review of annual strategic and operating plans, capital allocation and annual budgets of businesses. Additionally, the Board reviews the compliance processes, internal control systems, material occurrences in the areas of environment, health and safety, Ă SFSHNFQQNFGNQNYNJXWJLZQFYTW^HQFNRXFSI developments in human resources. Four Board Meetings were held during +>TS­2F^­­&ZLZXY­ ­)JHJRGJW­FSI­+JGWZFW^­ The Companyâ&#x20AC;&#x2122;s last Annual General Meeting \FXMJQITS­&ZLZXY­)JYFNQXTK attendance of Directors at Board Meetings held during the year under review and the previous Annual General Meeting of the Company are provided in Table 1 in this Report.

The terms and conditions of Independent Directors appointment is available on the Companyâ&#x20AC;&#x2122;s website and can be accessed at http://www.cgglobal.com/pdfs/BOD/T&CIndependentDirectorsAppt.pdf

INDEPENDENT DIRECTORSâ&#x20AC;&#x2122; MEETING During the year under review, a meeting of the Independent Directors of the (TRUFS^\FXMJQITS­+JGWZFW^­ All Independent Directors were present at the meeting to discuss the performance evaluation of the Board and Chairman, assess quality, quantity and timeliness of NSKTWRFYNTSĂ&#x201A;T\XKWTR2FSFLJRJSYYT the Board and the current strategic and operational position of the Company.

DIRECTORSâ&#x20AC;&#x2122; SHAREHOLDING & RELATIONSHIP INTER-SE &XTS­2FWHM­2W­'­-FWNMFWFS MJQIJVZNY^XMFWJXTKI2 each and )W­;FQJSYNS­[TS­2FXXT\MJQI,QTGFQ Depository Receipts, none of the other Directors held any shares in the Company. Further none of the Directors on the Board is related to each other.

SELECTION AND APPOINTMENT OF DIRECTORS The Company has issued formal letters of appointment to the Independent Directors.

COMPOSITION AND ATTENDANCE OF BOARD OF DIRECTORS FOR THE FINANCIAL YEAR 2016â&#x20AC;&#x201C;17 AND DETAILS OF THEIR NUMBER OF DIRECTORSHIPS / COMMITTEE CHAIRPERSON / MEMBERSHIPS HELD AS ON DATE OF THIS REPORT

NAME OF DIRECTOR

CATEGORY

NO. OF REPRESENTATIONS Directorships@

Committee Chairperson#

Committee Membership#

11

1

2

3

NIL

1

Mr Gautam Thapar

3TS*]JHZYN[J (MFNWRFS

Mr K N Neelkant

*]JHZYN[J (*4FSI2FSFLNSL Director

Mr Madhav Acharya^

*]JHZYN[J )NWJHYTW´ Finance & CFO

4

NIL

NIL

Dr Omkar Goswami

3TS*]JHZYN[J

11

NIL

7

Mr B Hariharan

3TS*]JHZYN[J

9

2



Mr Sanjay Labroo

3TS*]JHZYN[J .SIJUJSIJSY



1

2

Dr Valentin von Massow

3TS*]JHZYN[J .SIJUJSIJSY

2

NIL

1

2X7FRSN3NWZQF

3TS*]JHZYN[J .SIJUJSIJSY

13

4



2X2JMJW5ZIZROJJ

3TS*]JHZYN[J .SIJUJSIJSY

NA

NA

NA

2W8MNWNXM&UYJc

3TS*]JHZYN[J .SIJUJSIJSY

NA

NA

NA

2W/NYJSIJW'FQFPWNXMSFS

3TS*]JHZYN[J .SIJUJSIJSY

11

2



Notes: (^) Mr Madhav Acharya was appointed as Executive Directorâ&#x20AC;&#x201D;Finance of the Company in addition to his role as CFO effective from 1 April 2016. (*) Ms Ramni Nirula was appointed as Non-Executive Independent Director effective from 6 April 2016 and as Chairperson of Corporate Social Responsibility Committee of the Board effective from 7 December 2016. (**) Ms Meher Pudumjee and Mr Shirish Apte, Non-Executive Independent Directors of the Company resigned from the Company effective from 28 May 2016 and 1 April 2017 respectively.

64 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


DIRECTORSâ&#x20AC;&#x2122; INDUCTION AND FAMILIARISATION

CODE OF CONDUCT AND BUSINESS PRACTICES

The Company has in place the practice of familiarising the Independent Directors, through induction and regular updates, which inter-alia seeks to provide the Directors information, on the Companyâ&#x20AC;&#x2122;s background, operations, procedures and policies, Directorâ&#x20AC;&#x2122;s roles, responsibilities, rights and duties under the Act and other statutes. The Board Members are provided with necessary documents, brochures, forms, reports and internal policies to enable them to familiarize with the Companyâ&#x20AC;&#x2122;s procedures and practices. The Board Members are apprised on the operations, strategic and futuristic plans of the Company through annual business review meeting and quarterly Board Meetings. This process helps the Independent Directors to take well informed decisions in a timely manner. Web link giving details of familiarization programme imparted to Independent Directors can be accessed on the Companyâ&#x20AC;&#x2122;s website at http://www. cgglobal.com/frontend/finalnonproduct. aspx?cnl2=yrnPqECUvhk=

The Company has adopted â&#x20AC;&#x2DC;CG Code of (TSIZHYFSI'ZXNSJXX5WFHYNHJX¸YMFYWJĂ&#x201A;JHYX its high standards of integrity and ethics. The Directors and Senior Management 5JWXTSSJQTKYMJ(TRUFS^MF[JFKĂ WRJI their adherence to this Code of Conduct and Business Practices for FY2017. As required by Regulation 34 of the Listing Regulations, 2W­0­3­3JJQPFSY(*4FSI2FSFLNSL Director of the Company, has signed and HTSĂ WRJIFIMJWJSHJYTYMNX(TIJTK Conduct and Business Practices, which is annexed at the end of this Report.

COMMITTEES OF THE BOARD RISK AND AUDIT COMMITTEE As on the date of this report, the composition of the Risk and Audit Committee comprises TKYMWJJ3TS*]JHZYN[J)NWJHYTWXTK\MTR two are Independent, as under: â&#x20AC;˘ 2W­8FSOF^­1FGWTT .SIJUJSIJSY)NWJHYTW â&#x20AC;˘ 2X­7FRSN­3NWZQF .SIJUJSIJSY)NWJHYTW â&#x20AC;˘ )W­4RPFW­,TX\FRN 3TS*]JHZYN[J Director) 2W­8MNWNXM­&UYJWJXNLSJIFX.SIJUJSIJSY Director of the Company and Chairman of the Risk and Audit Committee effective from ­&UWNQ­

The Members of the Risk and Audit Committee have wide exposure and PST\QJILJNSYMJFWJFTKĂ SFSHJFSI accounting. The CEO and Managing Director, (MNJK+NSFSHNFQ4KĂ HJW(MNJKTK.SYJWSFQ&ZINY and representatives of the Statutory Auditors attend the meetings of Risk and Audit Committee. The Company Secretary of the Company is the Secretary to this Committee. The Chairman of the Risk and Audit Committee briefs the Board of Directors, at every Board Meeting, on the discussions that are deliberated at the Risk and Audit Committee Meeting and the Minutes of the Committee Meetings are placed before the Board of Directors, for a full disclosure of the discussions taken place at these Meetings. 9MJ(TRUFS^MFXFSNSIJUJSIJSYNS house internal audit function with adequate professional resources and skills, aligned with the Companyâ&#x20AC;&#x2122;s nature, size and complexity of business. The Head of Internal Audit reports directly to the CEO and Managing Director and the Risk and Audit Committee. The Company believes that an independent and professional Internal Audit Team is the key to an objective assurance on the internal control processes and from that perspective WJLZQFWQ^WJ[NJ\XYMJFIJVZFH^TKXYFKĂ SL and competencies of the Internal Audit team.

ATTENDANCE AT MEETINGS Board Meetings

Risk and Audit Committee

Nomination and Remuneration Committee

Stakeholdersâ&#x20AC;&#x2122; Relationship Committee

Corporate Social Responsibility Committee

Previous Annual General Meeting

3

NA

3

1

2

No

4

NA

NA

1

NA

Yes

4

NA

NA

NA

NA

Yes

3

3

NA

NA

NA

Yes

3

NA

NA

NA

NA

Yes

3

3

3

NA

NA

No

3

NA

NA

NA

2

No

4

2

3

NA

1

Yes

1

NA

NA

NA

1

NA

2

3

NA

NA

1

Yes

NA

NA

NA

NA

NA

NA

(~) Mr Shirish Apte was Chairman of the Risk and Audit Committee of the Board of Directors upto 31 March 2017. (***) Mr Jitender Balakrishnan was appointed as Non-Executive Independent Director of the Company effective from 2 May 2017. (@) Includes directorships as on date in only Indian companies (including CG) but excludes alternate directorships. (#) Committee Chairperson and Membership as on date include only Audit Committee and Stakeholdersâ&#x20AC;&#x2122; Relationship Committee of Public Limited Companies (including CG).

REPORT ON CORPORATE GOVERNANCE 65


CGâ&#x20AC;&#x2122;s CSR Policy adopted by the Board, articulates its CSR principles of responsible corporate citizenship envisaging inclusive growth, diversity and equitable development, making sustained efforts at environment preservation, working with underserved communities and preserving the ecosystem that supports the Company.

The Risk and Audit Committee monitors YMJà SFSHNFQWJUTWYNSLUWTHJXXJXFSITYMJW processes as per the regulatory requirements mandated and functions in accordance with the Terms of Reference as approved by the Board of Directors in compliance with Section 177 of the Act and Regulation 18 of the Listing Regulations. The Risk and Audit Committee, inter-alia, provides reassurance to the Board on the existence of an effective internal control environment. During FY2017, four Risk and Audit Committee meetings were held TS­2F^­­&ZLZXY­ ­)JHJRGJW­FSI­+JGWZFW^­ The attendance record of the Committee Meetings is given in Table 1 in this Report.

NOMINATION AND REMUNERATION COMMITTEE The Board of Directors of the Company has constituted a Nomination and Remuneration Committee in compliance with the provisions of Section 178 of the Act and Regulation 19 of the Listing Regulations. The role of the Nomination and Remuneration Committee in brief is as follows: i. The Committee is responsible for formulating evaluation policies and reviewing all major aspects of Companyâ&#x20AC;&#x2122;s HR processes relating to hiring, training, talent management, succession planning and compensation structure of the Directors and Senior Management. ii..IJSYNK^UJWXTSX\MTFWJVZFQNĂ JIYT become Directors and may be appointed in Senior Management in accordance with the criteria laid down and recommend to the Board their appointment / removal. iii. Carry out evaluation of every Directorâ&#x20AC;&#x2122;s performance. iv. Devising a policy on Board diversity. v. Formulate criteria for determining VZFQNĂ HFYNTSXUTXNYN[JFYYWNGZYJX and independence of a Director and recommend to the Board a policy relating to the remuneration for the Directors, Key Managerial Personnel and other employees.

66 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

As on the date of this Report, the Nomination and Remuneration Committee of the Company comprises of the following three 3TS*]JHZYN[J)NWJHYTWXTK\MNHMY\T including the Chairperson, are Independent Directors: â&#x20AC;˘ 2X­7FRSN­3NWZQF (MFNWUJWXTS Independent Director) â&#x20AC;˘ 2W­8FSOF^­1FGWTT .SIJUJSIJSY)NWJHYTW â&#x20AC;˘ 2W­,FZYFR­9MFUFW 3TS*]JHZYN[J Director) During FY2017, three Nomination and Remuneration Committee Meetings were MJQITS­2F^­­)JHJRGJW­FSI ­+JGWZFW^­9MJFYYJSIFSHJWJHTWITK the Committee Members thereat is given in Table 1 in this Report. The Committee also anchors the performance evaluation of all Directors of the Company. Performance evaluation criteria for Independent Directors of the Company has been provided in the section titled â&#x20AC;&#x2DC;Directors Reportâ&#x20AC;&#x2122; of this Annual Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE As on the date of this Report, the Corporate Social Responsibility Committee of the 'TFWIHTRUWNXJXTKYMJKTQQT\NSLYMWJJ3TS Executive Directors, of which two, including the Chairperson, are independent: â&#x20AC;˘ 2X­7FRSN­3NWZQF (MFNWUJWXTS Independent Director) â&#x20AC;˘ )W­;FQJSYNS­[TS­2FXXT\ .SIJUJSIJSY Director) â&#x20AC;˘ 2W­,FZYFR­9MFUFW 3TS*]JHZYN[J Director) CGâ&#x20AC;&#x2122;s CSR Policy adopted by the Board, articulates its CSR principles of responsible corporate citizenship envisaging inclusive growth, diversity and equitable development, making sustained efforts at environment preservation, working with underserved communities and preserving the ecosystem that supports the Company. The Corporate Social Responsibility Committee and the Board annually approves the CSR expenditure budget and project plan and quarterly reviews the CSR expenditure and activities undertaken by the Committee and milestones achieved.


During FY2017, two CSR Committee 2JJYNSLX\JWJMJQITS­2F^­FSI ­+JGWZFW^­9MJFYYJSIFSHJWJHTWINX given in Table 1 in this Report.

STAKEHOLDERSâ&#x20AC;&#x2122; RELATIONSHIP COMMITTEE The Stakeholdersâ&#x20AC;&#x2122; Relationship Committee comprises of the following Directors as on the date of this report: â&#x20AC;˘ 2W­,FZYFR­9MFUFW (MFNWUJWXTS3TS Executive Director) â&#x20AC;˘ 2W­0­3­3JJQPFSY *]JHZYN[J)NWJHYTW´ CEO and Managing Director) During FY2017, the Stakeholdersâ&#x20AC;&#x2122; Relationship Committee met on ­+JGWZFW^­FY\MNHMRJJYNSLFQQ Members were present. The Stakeholdersâ&#x20AC;&#x2122; Relationship Committee of the Board reviews the redressal of grievances of security holders of the Company, including shareholdersâ&#x20AC;&#x2122; complaints related to transfers and transmissions, non receipt of annual reports, dividends and other share related matters, the periodicity and effectiveness of the share transfer process, WJLZQFYTW^HJWYNĂ HFYNTSXIJUTXNYTW^WJQFYJI issues and activities of the Registrar and Transfer Agent. In addition to a review by the Committee, the Company continues its existing practice of reporting to the Directors at each Board Meeting, the number and category of Shareholder complaints received and the status of their resolution. The Company enjoys an extremely high level TKNS[JXYTWXFYNXKFHYNTS\MNHMNXWJĂ&#x201A;JHYJI NSYMJ[JW^NSXNLSNĂ HFSYSZRGJWTKNS[JXYTW complaints. The Company received 6 shareholdersâ&#x20AC;&#x2122; HTRUQFNSYXIZWNSLYMJĂ SFSHNFQ^JFWZSIJW

02

review, which were of a routine nature and were satisfactorily resolved. There are no outstanding complaints or shares pending YWFSXKJWFXTS­2FWHM­ In order to expedite the process, the Board of Directors has also delegated the authority severally to CEO & Managing Director and the Company Secretary to approve the share transfers / transmissions and accordingly, CEO & Managing Director or the Company Secretary approve the transfer / transmission of shares as and when required from time to time. The Board of Directors has appointed 2W­2FSTO­0TZQYMJ(TRUFS^8JHWJYFW^FX YMJ(TRUQNFSHJ4Kà HJWNSHTRUQNFSHJ\NYM the Regulation 6 of the Listing Regulations. 2W­0TZQFQXTFHYXFXF8JHWJYFW^YTFQQ Committees of the Board of Directors.

REMUNERATION OF DIRECTORS PECUNIARY RELATIONSHIP OF NON-EXECUTIVE DIRECTORS The Company has no pecuniary relationship TWYWFSXFHYNTS\NYMYMJ3TS*]JHZYN[J Directors of the Company other than payment of sitting fees to them for attending the Board and Committee Meetings and HTRRNXXNTSTZYTKYMJUWTĂ YXTKYMJ Company within the limits approved by the Members for their immense efforts and services to the Company.

DIRECTORSâ&#x20AC;&#x2122; COMPENSATION All Directors of the Company are paid remuneration as per the terms and conditions of their appointment in compliance with the Companyâ&#x20AC;&#x2122;s Remuneration Policy, applicable provisions of the Act and Rules made thereunder read with Schedule V of the said Act and approval of the Shareholders

of the Company. The Company does not have any employee stock option plans or XHMJRJX9MJ3TS*]JHZYN[J)NWJHYTWXFWJ compensated by way of sitting fees and UWTĂ YXMFWNSLHTRRNXXNTSGFXJITSYMJNW attendance in the Board, Committee and other strategic meetings of the Company. The details of criteria for making payments YT3TS*]JHZYN[J)NWJHYTWXWJRZSJWFYNTS paid to all the Directors and the other disclosures required to be made under Schedule V of the Listing Regulations have been provided in the section titled â&#x20AC;&#x2DC;Directors Reportâ&#x20AC;&#x2122; of this Annual Report.

INFORMATION ON GENERAL BODY MEETINGS The details of the last three Annual General Meetings of the Company held alongwith Special Resolutions passed thereat are indicated in Table 2 in this Report. During FY2017, the Company had sought approval from the Shareholders for change of Company name from â&#x20AC;&#x2DC;Crompton Greaves Limitedâ&#x20AC;&#x2122; to â&#x20AC;&#x2DC;CG Power and Industrial Solutions Limitedâ&#x20AC;&#x2122; and the consequential alteration of Memorandum of Association and Article of Association and other documents of the Company by way of passing a Special Resolution, through Postal Ballot on ­/FSZFW^­ 9MJ[TYNSLUJWNTI YMWTZLMJ;TYNSL and postal ballot) commenced from ­FR­ .89TS­)JHJRGJW­FSI JSIJIFYUR .89TS­/FSZFW^­ 2W­5WFRTI­8MFM (453TTK 2X­5WFRTI88MFM &XXTHNFYJX5WFHYNXNSL Company Secretaries, Mumbai (Reg. No. P2001MH010300) was appointed as the Scrutinizer to scrutinize the Postal Ballot

SPECIAL RESOLUTIONS THAT WERE APPROVED BY SHAREHOLDERS AT THE LAST THREE ANNUAL GENERAL MEETINGS

FINANCIAL YEAR

LOCATION

DATE

TIME (IST)

SPECIAL RESOLUTIONS PASSED

2013â&#x20AC;&#x201C;14

Swatantryaveer Savarkar Rashtriya Smarak, Mumbai 400 028

&ZLZXY

3.00 p.m.

Appointment of Mr Sanjay Labroo as an Independent Director Appointment of Ms Meher Pudumjee as an Independent Director Appointment of Dr Valentin von Massow as an Independent Director Creating Mortgage / Charge on the assets of the Company Alteration of Articles of Association

Âł

Ravindra Natya Mandir, 2ZRGFN

/ZQ^

3.00 p.m.

Adoption of new Articles of Association

Âł

Swatantryaveer Savarkar Rashtriya Smarak, Mumbai 400 028

30 August 2016

3.00 p.m.

8FQJTK3TS.SINF9WFSXRNXXNTSFSI)NXYWNGZYNTS 9 )'ZXNSJXXJX

REPORT ON CORPORATE GOVERNANCE 67


The T3 facility at Mandideep remains Indiaâ&#x20AC;&#x2122;s leading 765kV plant for Transformers and Reactors.

68 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


03

RESULT OF POSTAL BALLOT FOR CHANGE OF COMPANY NAME VOTES IN FAVOUR

VOTES AGAINST

No. of votes cast by them

% of total no. of votes

No. of Members voted

No. of votes cast by them

% of total no. of votes

No. of Members voted

No. of votes cast by them

1,000



99.99

48

11,493

0.01

23

17,716

UWTHJXX J;TYNSLFSIUTXYFQGFQQTYNSFKFNW and transparent manner. The Company complied with the procedures for the Postal Ballot, stated, in Section 110 of the Act read with Rule 22 of the Companies (Management and Administration) Rules, 2014, Secretarial 8YFSIFWITS,JSJWFQ2JJYNSLXNXXZJIG^ the Institute of Company Secretaries of India, and Regulation 44 of the Listing Regulations as amended from time to time. Results of Postal Ballot, indicated in Table 3, were IJHQFWJITS­/FSZFW^­

MEANS OF COMMUNICATION Full, complete and timely disclosure of information regarding the Companyâ&#x20AC;&#x2122;s Ă SFSHNFQUTXNYNTSFSIUJWKTWRFSHJNXFS important part of the Companyâ&#x20AC;&#x2122;s Corporate Governance ethos. To this end, the Company: â&#x20AC;˘ Prepares and dispatches, through permitted modes, a full version of its Annual Report despite an abridged version FQQT\JIFXUJWWJLZQFYTW^J]JRUYNTS â&#x20AC;˘ 8ZGRNYXXYFSIFQTSJFSIHTSXTQNIFYJI Ă SFSHNFQWJXZQYXTKYMJ(TRUFS^TSF quarterly basis to National Stock Exchange of India Limited and BSE Limited through their designated web portals â&#x20AC;&#x2DC;NEAPSâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;BSE Listing Centreâ&#x20AC;&#x2122;, respectively within the prescribed timelines. The said results are simultaneously published in leading newspapersâ&#x20AC;&#x201D;Financial Express (in English) and Loksatta (in Marathi). The (TRUFS^FQXTĂ QJXTSQNSJNSKTWRFYNTSTK YMJ+NSFSHNFQ7JXZQYXFSITYMJWXUJHNĂ JI RFYYJWXTSYMJ¡53­3J\X\NWJ¸\JGXNYJFX approved by the London Stock Exchange.

â&#x20AC;˘

INVALID / ABSTAIN VOTES

No. of Members voted

Conducts analyst interactions to provide LWJFYJWYWFSXUFWJSH^FSIHQFWNà HFYNTSX TSYMJ(TRUFS^¸Xà SFSHNFQUJWKTWRFSHJ Transcripts of the analyst interactions are sent to the Stock Exchanges on which shares of the Company are listed.

â&#x20AC;˘

Promptly reports all material information NSHQZINSLTKĂ HNFQUWJXXWJQJFXJXJYHYTFQQ Stock Exchanges on which shares of the Company are listed.

All above information and disclosures made to Stock Exchanges and investors are also simultaneously displayed on the Companyâ&#x20AC;&#x2122;s website www.cgglobal.com CGâ&#x20AC;&#x2122;s Investor Query System, a web based system continues to support the Shareholders in sending queries relating to any processing activity concerning their shareholding in CG. In support of the â&#x20AC;&#x2DC;Green Initiativesâ&#x20AC;&#x2122; promoted by the Ministry of Corporate Affairs FSIYTJSHTZWFLJJJSFGQJIWJLZQFYTW^ compliances, to conserve consumption of paper and preserve the environment, the Company sends its Annual Report as well as other shareholder correspondences JQJHYWTSNHFQQ^YT2JRGJWX\MTXJJRFNQ address is registered with the Company / Depository Participants. In case any Shareholder desires to receive a physical copy of the Annual Report or other correspondence, the Company provides the same upon request. Members who have STYWJLNXYJWJIYMJNWJRFNQFIIWJXXRF^ ITXTG^XZGRNYYNSLFIZQ^Ă QQJINS¡*RFNQ Registration Formâ&#x20AC;&#x2122;, enclosed with the Notice accompanying this Annual Report, with the Company / Depository Participant. Further the â&#x20AC;&#x2DC;Information to Investorâ&#x20AC;&#x2122; section on the website of the Company provides â&#x20AC;&#x2DC;liveâ&#x20AC;&#x2122; share prices, as well as, graphical information relating to the historical share prices and UZGQNXMJIĂ SFSHNFQXTKYMJ(TRUFS^,WFUMX WJQFYNSLYTNSHTRJ UWTĂ YFGNQNY^GFQFSHJ sheet & equity position, ratios, share returns TSYMJXYFSIFQTSJFSIHTSXTQNIFYJIUTXNYNTS of the Company across a number of years are readily available, in a user friendly manner for use by retail investors and researchers.

REPORT ON CORPORATE GOVERNANCE 69


A 200

PRICE MOVEMENT OF CG SHARES ON BSE VIS-A-VIS MOVEMENT OF BSE SENSEX

CG SHARE PRICE SENSEX

CG Share Price and BSE Sensex=100 on 1 April 2016

150

100

APR 2016

MAR 2017

GENERAL SHAREHOLDER INFORMATION 80th ANNUAL GENERAL MEETING

2ZRGFN­ Stock Code: CGPOWER

Date:+WNIF^­8JUYJRGJW­ Time: 3.00 p.m. (IST) Venue: 4th Ă&#x201A;TTW8\FYFSYW^F[JJW8F[FWPFW

ISIN: INE067A01029 (NSDL & CDSL) GDR Code: 

7FXMYWN^F8RFWFP;JJW8F[FWPFW2FWL 8MN[FON5FWP)FIFW <JXY2ZRGFN­

FINANCIAL YEAR AND TENTATIVE CALENDAR FOR FINANCIAL YEAR ENDING 31 MARCH 2018 The Companyâ&#x20AC;&#x2122;s accounting year comprises TKRTSYMXUJWNTIKWTR­&UWNQYT­2FWHM Tentative calendar of Board Meetings for HTSXNIJWFYNTSTKĂ SFSHNFQWJXZQYXKTWĂ SFSHNFQ ^JFWJSINSL­2FWHM­NXFXZSIJW

The Company has paid the annual listing fees to each Stock Exchange on which its shares are listed.

MARKET PRICE DATA: BSE LIMITED The Market Price data for BSE Limited is given in Table 4 and Chart A in this Report.

DISTRIBUTION OF SHAREHOLDING The data for the distribution of shareholding is given in Table 5 in this Report.

FIRST QUARTER RESULTS 4SGJKTWJ­&ZLZXY­

CATEGORIES OF SHAREHOLDING

SECOND QUARTER RESULTS

The data for the categories of shareholders is given in Table 6 in this Report.

4SGJKTWJ­3T[JRGJW­

REGISTRAR AND SHARE TRANSFER AGENT THIRD QUARTER RESULTS 4SGJKTWJ­+JGWZFW^­

LAST QUARTER RESULTS AND ANNUAL AUDITED RESULTS

The Companyâ&#x20AC;&#x2122;s Registrar and Share Transfer Agent is Datamatics Financial Services Limited, which is a SEBI registered Registrar and Share Transfer Agent, whose contact details are as under:

4SGJKTWJ­2F^­

DATAMATICS FINANCIAL SERVICES LIMITED NAME & ADDRESS OF THE STOCK EXCHANGES BSE LIMITED Phiroze Jeejeebhoy Towers )FQFQ8YWJJY2ZRGFN­ Stock Code:

70 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Unit: CG Power and Industrial Solutions Limited 5QTY3T'5FWY'(WTXXQFSJ 2.)(2FWTQ&SIMJWN *FXY2ZRGFN­­ Tel: YT Fax: + 91 (0) 22 6671 2230 Email: cginvestors@dfssl.com

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

SHARE TRANSFER SYSTEM

*]HMFSLJ5QF_F('QTHP, Bandra Kurla Complex, Bandra (East),

The Companyâ&#x20AC;&#x2122;s shares are compulsorily traded in dematerialised form. Request for


share transfers in physical form, lodged at the 7JLNXYWFWFSI8MFWJ9WFSXKJW&LJSY¸XTKà HJ these are processed within a maximum UJWNTITKIF^XKWTRYMJIFYJTKWJHJNUY All share transfers and other share related issues are approved by Securities Transfer Committee duly constituted for this purpose. During FY2017, 49 approvals were granted.

04

MARKET PRICE DATA: BSE LIMITED HIGHEST (L) LOWEST (L) OF THE MONTH OF THE MONTH

MONTH

CLOSING (L) (1ST TRADING DAY OF THE MONTH)

SENSEX (1ST TRADING DAY OF THE MONTH)

April 2016



48.00





May 2016









June 2016

76.80

66.00

68.20

26,684.46

July 2016





73.80

27,064.33

August 2016



74.20



28,083.08

September 2016

84.60







October 2016





78.60

27,997.29

November 2016





77.40

27,996.18

December 2016









GLOBAL DEPOSITORY RECEIPTS (GDRs)

January 2017

67.80







The Company has issued GDRs in 1996 and the underlying shares for each GDR were issued in the name of The Bank of New York, the Depository. Each GDR of YMJ(TRUFS^NXJVZN[FQJSYYTà [JXMFWJX &XTS­2FWHM­,)7X\JWJ outstanding, which represented 882,329 underlying equity shares.

February 2017

73.40

63.10

66.20

27,669.08

March 2017

78.40



69.40

28,849.04

DEMATERIALISATION OF SHARES &XTS­2FWHM­ TKYMJ total shares of the Company were held in dematerialised form, as compared to 99.13% for the previous year.

PLANT LOCATIONS Detailed information on plant locations, products, establishments and service centres with their contact details, is provided at the end of this Annual Report.

ADDRESS FOR CORRESPONDENCE CORPORATE SECRETARIAL DEPARTMENT The Corporate Secretarial Department is QTHFYJIFYYMJ(TRUFS^¸X-JFI4Kà HJFY 10th Floor, CG House, Dr Annie Besant Road, Worli, Mumbai 400 030.

INVESTOR SERVICES DEPARTMENT In addition to the Share Registrar and Transfer Agent, our Investor Services Department, which is located at the (TRUFS^¸X7JLNXYJWJI4Kà HJNXMFUU^YT assist, in case investors experience any INKà HZQYNJXNSYMJNWNSYJWFHYNTS\NYM)FYFRFYNHX Financial Services Limited.

As on 31 March 2017

05

Sensex

77.60

29,620.50

DISTRIBUTION OF SHAREHOLDING AS ON 31 MARCH 2017

NO OF SHARES

NO OF SHAREHOLDERS

% OF SHAREHOLDERS

:UYT

127,980

86.12

Âł



6.16

1001â&#x20AC;&#x201C;2000



3.66

2001â&#x20AC;&#x201C;3000

2,026

1.36

3001â&#x20AC;&#x201C;4000

1,064

0.72

Âł

614

0.41

Âł

1,284

0.86

10001 and above

1,043

0.71

148,604

100.00

Total

06

CATEGORIES OF SHAREHOLDERS AS ON 31 MARCH 2017

CATEGORY

NO OF SHARES OF L2 EACH

% OF SHAREHOLDINGS



34.38

Financial Institutions

179,220

0.03

Banks

497,329

0.08

Promoters





Mutual funds

147,667,266



Foreign investors



22.07



0.00

Insurance companies

Contact Person:2W­8MNWNXM­&YMFQJPFW Managerâ&#x20AC;&#x201D;Corporate Secretarial Time:URYTUR .89 2TSIF^ to Friday) Tel: Fax: E-mail: shirish.athalekar@cgglobal.com

Share Price

Directors Domestic companies





Individuals

67,609,163

10.79

626,746,142

100.00

Total

REPORT ON CORPORATE GOVERNANCE 71


OTHER DISCLOSURES DISCLOSURE OF MATERIAL RELATED PARTY TRANSACTIONS Considering the size and nature of operations, during the year under review there were no related party transactions TKRFYJWNFQQ^XNLSNĂ HFSYSFYZWJNSYJWRXTK the Listing Regulations that could have a UTYJSYNFQHTSĂ&#x201A;NHY\NYMYMJNSYJWJXYXTKYMJ Company at large. The policy on dealing with related party transactions can be accessed on the website of the Company at http://www.cgglobal.com/pdfs/ policies/ India%20Related%20Party%20 Transactions%20Policy.pdf

DISCLOSURE OF PENDING CASES / INSTANCES OF NON-COMPLIANCE 9MJWJMF[JGJJSSTNSXYFSHJXTKSTS compliances by the Company or of penalties and strictures imposed on the Company by the Stock Exchanges or Securities and Exchange Board of India (SEBI) or any other statutory authority on any matter related to the Capital market during the last three Ă SFSHNFQ^JFWX 9MJWJNXSTSTSHTRUQNFSHJTKFS^ requirements of Corporate Governance 7JUTWYFXUWJXHWNGJIZSIJWXZGUFWFX YT (10) of Part C of Schedule V of the Listing Regulations.

WHISTLE BLOWER POLICY The Company has formulated a Whistle Blower Policy for employees to report concerns of unethical behaviour and violation of the Companyâ&#x20AC;&#x2122;s Code of Business Practices. The details of the Policy are contained in the section titled â&#x20AC;&#x2DC;Directorsâ&#x20AC;&#x2122; Reportâ&#x20AC;&#x2122; and are also posted on the website of the Company. The Whistle blowers are not denied access to the Risk and Audit Committee.

07

GOVERNANCE OF SUBSIDIARIES

UNCLAIMED SHARES

The subsidiaries of the Company are adequately empowered through delegation of the operational powers to local Management at all locations. The Management of subsidiary companies are responsible for statutory compliances, health & safety concerns, integrity of accounts and assurance on internal controls. The material contents of the minutes of Board Meetings of all Indian as well as overseas subsidiaries of the Company are placed before the Board of Directors of the Company. The Company has also established a mechanism through \MNHMĂ SFSHNFQHTSHJWSXRFYJWNFQIJKFZQYX show cause notices, dangerous occurrences, UWTIZHYQNFGNQNY^HQFNRXXNLSNĂ HFSY developments in human resources, major Ă SFSHNFQIJHNXNTSXFSIXNRNQFWXNLSNĂ HFSY actions / decisions of all subsidiary companies are reported to the Companyâ&#x20AC;&#x2122;s 'TFWITK)NWJHYTWX.SFIINYNTSĂ SFSHNFQ statements, compliance issues, internal control procedures and operational risks of these subsidiaries are also reviewed by the Risk and Audit Committee of the Company, as applicable. The Company has formulated a Policy on Material Subsidiaries which is available on the weblink http://www.cgglobal.com/pdfs/ policies/Policy-determining-Mat-Subsidiaries. pdf. 8NLSNĂ HFSYYWFSXFHYNTSXJSYJWJINSYTG^ the material subsidiaries are monitored on a quarterly basis by the Risk and Audit Committee and the Board.

Regulation 39 of the Listing Regulations requires a listed company to transfer shares, which have remained unclaimed pursuant to a public issue or any other issue, to an Unclaimed Suspense Account with a Depository Participant. The voting rights with respect to the shares held in such Unclaimed Suspense Account are frozen and future share allotments are also to be issued directly to such account. This Regulation requires a Company to send three reminders in this regard before the transfer. During FY2017, 2 shareholders have claimed 987 shares which were transferred to their respective demat accounts. Details of unclaimed shares at the beginning of the year and at the end of the year and requests processed during the year are given in Table 7 in this Report.

COMMODITY, FOREIGN EXCHANGE HEDGING The Company is not dealing in commodity and hence disclosure relating to commodity price risks and commodity hedging activities is not given.

TRANSFER OF UNCLAIMED DIVIDENDS TO THE INVESTOR EDUCATION AND PROTECTION FUND In terms of the provisions of Sections FSITKYMJ&HYFSIYMJ.S[JXYTW Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) 7ZQJXSTYNà JIG^YMJ2NSNXYW^TK (TWUTWFYJ&KKFNWXJKKJHYN[J­8JUYJRGJW­ as amended by Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, JKKJHYN[JKWTR­+JGWZFW^­YMJ dividend(s) which have remained unclaimed / unpaid for a period of seven years have been transferred to the Investor Education and Protection Fund. Details of the due dates for transfer of dividends pertaining to YMJà SFSHNFQ^JFWX³YT³ which, if remain, unclaimed / unpaid for a period of seven years are as under:

UNCLAIMED SHARES

BEGINNING OF THE YEAR No. of Shareholders

No. of Shares

4,074



72 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

NO. OF SHAREHOLDERS WHO APPROACHED FOR TRANSFER

2

NO. OF SHAREHOLDERS TO WHOM SHARES WERE TRANSFERRED

2

END OF THE YEAR No. of Shareholders

No. of Shares

4,072




Date of Declaration of Dividend

Due Date for Transfer to the Investor Education and Protection Fund

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­+JGWZFW^­

­2FWHM­

NON-MANDATORY REQUIREMENTS The Company has implemented the following STSRFSIFYTW^WJVZNWJRJSYXWJHTRRJSIJI under Regulation 27 of the Listing Regulations: a.4KĂ HJ\NYMWJVZNXNYJKFHNQNYNJXNXUWT[NIJI and maintained at the Companyâ&#x20AC;&#x2122;s expense for use by the Chairman of the Company. The Company also reimburses all expenses incurred in his furthering the Companyâ&#x20AC;&#x2122;s business interests. b.9MJTKĂ HJTKYMJ(MFNWRFSFSI(MNJK *]JHZYN[J4KĂ HJWFWJXJUFWFYJQ^MJQIG^Y\T different individuals. c. The Internal Auditor of the Company directly reports to the Risk & Audit Committee of the Board. d.9MJ&ZINYTW¸XTUNSNTSTSYMJ8YFSIFQTSJ and Consolidated Financial Statements of the (TRUFS^NXZSRTINĂ JI

ADDITIONAL INFORMATION MANAGEMENT DISCUSSION AND ANALYSIS Management Discussion and Analysis is given as a separate chapter in this Annual Report. Business Responsibility Report for FY2017 under Regulation 34 of the Listing

Regulations is available on website of the Company at the weblink www.cgglobal.com

other matters, as required by Regulation 34 TK1NXYNSL7JLZQFYNTSXFSIYMJXFNI(JWYNĂ HFYJ is part of this Annual Report.

ACCOUNTING POLICIES The Company has adopted accounting treatments which are in conformance with those prescribed by the applicable Accounting Standards.

IT ACTIVITIES As permitted under the Act, the Company maintains its books of accounts in electronic form. The Company hosts and manages all business applications and data in its own Tier 3 data center located at Mumbai and does not utilise any cloud or third party hosted environments for this service.

INSIDER TRADING The Company has comprehensive guidelines in accordance with the SEBI (Prohibition TK.SXNIJW9WFINSL7JLZQFYNTSXNS this regard, which advise and caution the Directors, Management, employees and their connected persons on the procedures to be followed, whilst dealing with the securities of the Company. The Insider Trading Code framed by the Company helps in ensuring compliance with these requirements.

CERTIFICATE ON CORPORATE GOVERNANCE 9MJ(TRUFS^MFXTGYFNSJIFHJWYNĂ HFYJ from M/s. S. N. Ananthasubramanian & Co., Practising Company Secretaries Firm (COP No. 1774) regarding compliance with the provisions relating to Corporate Governance for FY2017, as prescribed by Regulation 34 of the Listing Regulations, which is attached at the end of this Report. On behalf of the Board of Directors GAUTAM THAPAR Chairman (DIN: 00012289) New Delhi, 26 May 2017

QUIET PERIOD POLICY CG follows a Quiet Period Policy during which the Company does not engage in any discussions, communications or other interaction with analysts, investors or media. This â&#x20AC;&#x2DC;Quiet Periodâ&#x20AC;&#x2122; commences on the 16th of the third month of each quarter and continues upto the conclusion of the Board 2JJYNSLFY\MNHMYMJĂ SFSHNFQWJXZQYXKTW each quarter are announced to the Stock Exchanges on which the Companyâ&#x20AC;&#x2122;s shares are listed. However, during the Quiet Period, the Companyâ&#x20AC;&#x2122;s Investor Services Department continues to address investor related issues and communications with the Stock Exchanges and other Regulatory Authorities as required by law.

CEO / CFO CERTIFICATION +TW+>2W­0­3­3JJQPFSY(*4FSI 2FSFLNSL)NWJHYTWFSI2W­2FIMF[­&HMFW^F Executive Directorâ&#x20AC;&#x201D;Finance and Chief +NSFSHNFQ4KĂ HJWTKYMJ(TRUFS^MF[J HJWYNĂ JIYTYMJ'TFWI\NYMWJXUJHYYTYMJ Ă SFSHNFQXYFYJRJSYXNSYJWSFQHTSYWTQXFSI

REPORT ON CORPORATE GOVERNANCE 73


CEO-CFO ANNUAL CERTIFICATION To, The Board of Directors, CG Power and Industrial Solutions Limited <JMF[JWJ[NJ\JIYMJ8YFSIFQTSJFSI(TSXTQNIFYJIĂ SFSHNFQ XYFYJRJSYXFSIYMJHFXMĂ&#x201A;T\XYFYJRJSYKTWYMJ^JFWJSIJI XY­2FWHMFSIHJWYNK^YMFY A. These statements to the best of our knowledge and belief: 1. do not contain any materially untrue statement or omit any material KFHYTWHTSYFNSXYFYJRJSYXYMFYRNLMYGJRNXQJFINSL  2. present a true and fair view of the Companyâ&#x20AC;&#x2122;s affairs and are in compliance with existing accounting standards, applicable laws and regulations. B. To the best of our knowledge and belief, no transactions entered into by the Company during the year, which are fraudulent, illegal or violate the Companyâ&#x20AC;&#x2122;s Code of Conduct and Business Practices.

CERTIFICATE REGARDING COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE To, The Members, CG Power and Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) CIN:L99999MH1937PLC002641 6th Floor, CG House, AB road, <TWQN2ZRGFN We have examined all relevant records of CG Power and Industrial Solutions Limited (â&#x20AC;&#x2DC;the Companyâ&#x20AC;&#x2122;) for the purpose of certifying compliance of the conditions of Corporate Governance for the Ă SFSHNFQ^JFWJSIJIXY2FWHM­FXXYNUZQFYJINS7JLZQFYNTSX YTFSIHQFZXJX GYT NTKXZGWJLZQFYNTS TK7JLZQFYNTSTK Chapter IV and Para C, D, and E of Schedule V of the SEBI (Listing 4GQNLFYNTSXFSI)NXHQTXZWJ7JVZNWJRJSYX7JLZQFYNTSX ¡14)7¸ FXWJKJWWJIYTNS7JLZQFYNTS TKYMJ14)7

C. We accept responsibility for establishing and maintaining internal HTSYWTQXKTWĂ SFSHNFQWJUTWYNSLFSIMF[JJ[FQZFYJIYMJJKKJHYN[JSJXX TKNSYJWSFQHTSYWTQX^XYJRXTKYMJ(TRUFS^UJWYFNSNSLYTĂ SFSHNFQ reporting and have disclosed to the Auditors and the Risk and Audit (TRRNYYJJIJĂ HNJSHNJXNSYMJIJXNLSTWTUJWFYNTSTKXZHMNSYJWSFQ controls of which we are aware, and the steps taken or proposed to GJYFPJSYTWJHYNK^YMJXJIJĂ HNJSHNJX

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of HJWYNĂ HFYNTS

D. We have indicated to the Auditors and the Risk and Audit Committee: 1.XNLSNĂ HFSYHMFSLJXNSNSYJWSFQHTSYWTQT[JWĂ SFSHNFQWJUTWYNSL IZWNSLYMJ^JFW 2.XNLSNĂ HFSYHMFSLJXNSFHHTZSYNSLUTQNHNJXIZWNSLYMJ^JFWFSI YMFYYMJXFRJMF[JGJJSINXHQTXJINSYMJSTYJXYTYMJĂ SFSHNFQ XYFYJRJSYX FSI

In our opinion and to the best of our information and according to the explanation given to us and on the basis of our examination of the records produced, explanations and information furnished, we certify that the Company has complied with all the conditions TK(TWUTWFYJ,T[JWSFSHJFXXUJHNĂ JINSYMJ14)7 subject to the appointment of an Independent Director against the vacancy caused due to the resignation of an Independent Director, as represented by the Company, so as to be in conformity with the Composition of the Board of Directors as stipulated under the provisions of Regulation 17(1) (b) of LODR.

E. To the best of our knowledge and belief, there are no instances TKXNLSNĂ HFSYKWFZINS[TQ[NSLJNYMJWYMJRFSFLJRJSYTWJRUQT^JJX MF[NSLFXNLSNĂ HFSYWTQJNSYMJ(TRUFS^¸XNSYJWSFQHTSYWTQX^XYJR T[JWĂ SFSHNFQWJUTWYNSL K N NEELKANT CEO and Managing Director (DIN: 05122610) MADHAV ACHARYA "TA?QPERA!ENA?PKN#EJ=J?A DEAB#EJ=J?E=H,BĹ&#x201A;?AN (DIN: 02787445) New Delhi, 26 May 2017

74 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

The compliance of the conditions of Corporate Governance is the responsibility of the Management and our examination was limited to the procedure and implementation thereof.

9MNXHJWYNĂ HFYJNXSJNYMJWFSFXXZWFSHJFXYTYMJKZYZWJ[NFGNQNY^TK YMJ(TRUFS^STWTKYMJJKĂ HFH^TWJKKJHYN[JSJXX\NYM\MNHMYMJ Management has conducted the affairs of the Company. FOR S N ANANTHASUBRAMANIAN & CO., Company Secretaries S N ANANTHASUBRAMANIAN C.P. No.: 1774 Thane, 23 May 2017


DECLARATION OF COMPLIANCE WITH CG CODE OF CONDUCT AND BUSINESS PRACTICES To, The Members, CG Power and Industrial Solutions Limited I, the undersigned, hereby declare that all the Board Members and Senior Management TKYMJ(TRUFS^MF[JFKÁWRJIHTRUQNFSHJ with ‘CG Code of Conduct and Business Practices’ laid down and adopted by the Company, during the year ended 2FWHM­­ K N NEELKANT CEO and Managing Director (DIN: 05122610) New Delhi, 26 May 2017

REPORT ON CORPORATE GOVERNANCE 75


FINANCIALS

76 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


FINANCIALS STAND-ALONE

FINANCIALS 77


INDEPENDENT AUDITORSâ&#x20AC;&#x2122; REPORT TO THE MEMBERS OF CG POWER AND INDUSTRIAL SOLUTIONS LIMITED (FORMERLY KNOWN AS CROMPTON GREAVES LIMITED)

Report on the Standalone Financial Statements <J MF[J FZINYJI YMJ FHHTRUFS^NSL XYFSIFQTSJ Ă SFSHNFQ XYFYJRJSYX of CG Power and Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the â&#x20AC;&#x153;Companyâ&#x20AC;?), which comprise the 'FQFSHJ8MJJYFXFYXY2FWHMYMJ8YFYJRJSYTK5WTĂ YFSI1TXX (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and FXZRRFW^TKYMJXNLSNĂ HFSYFHHTZSYNSLUTQNHNJXFSITYMJWJ]UQFSFYTW^ NSKTWRFYNTS MJWJNSFKYJWWJKJWWJIYTFXÂľYMJXYFSIFQTSJ.SI&8Ă SFSHNFQ statementsâ&#x20AC;?). Managementâ&#x20AC;&#x2122;s Responsibility for the Standalone Ind AS Financial Statements The Companyâ&#x20AC;&#x2122;s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the â&#x20AC;&#x153;Actâ&#x20AC;?) with respect YTYMJUWJUFWFYNTSTKYMJXJXYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYXYMFY LN[JFYWZJFSIKFNW[NJ\TKYMJĂ SFSHNFQUTXNYNTSĂ SFSHNFQUJWKTWRFSHJ including Other Comprehensive Income, Cash Flows and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards XUJHNĂ JI ZSIJW 8JHYNTS  TK YMJ &HY WJFI \NYM YMJ (TRUFSNJX (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate NSYJWSFQĂ SFSHNFQHTSYWTQXYMFY\JWJTUJWFYNSLJKKJHYN[JQ^KTWJSXZWNSL the accuracy and completeness of the accounting records, relevant YTYMJUWJUFWFYNTSFSIUWJXJSYFYNTSTKYMJXYFSIFQTSJ.SI&8Ă SFSHNFQ statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditorsâ&#x20AC;&#x2122; Responsibility 4ZWWJXUTSXNGNQNY^NXYTJ]UWJXXFSTUNSNTSTSYMJXJXYFSIFQTSJ.SI&8 Ă SFSHNFQXYFYJRJSYXGFXJITSTZWFZINY We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. <JHTSIZHYJITZWFZINYTKYMJXYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX NSFHHTWIFSHJ\NYMYMJ8YFSIFWIXTS&ZINYNSLXUJHNĂ JIZSIJW8JHYNTS 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable FXXZWFSHJFGTZY\MJYMJWYMJXYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS Ă SFSHNFQ XYFYJRJSYX 9MJ UWTHJIZWJX XJQJHYJI IJUJSI TS YMJ auditorâ&#x20AC;&#x2122;s judgement, including the assessment of the risks of material RNXXYFYJRJSYTKYMJXYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX\MJYMJW due to fraud or error. In making those risk assessments, the auditor HTSXNIJWX NSYJWSFQ Ă SFSHNFQ HTSYWTQ WJQJ[FSY YT YMJ (TRUFS^¸X UWJUFWFYNTS TK YMJ XYFSIFQTSJ .SI &8 Ă SFSHNFQ XYFYJRJSYX YMFY LN[J a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâ&#x20AC;&#x2122;s Board of Directors, as well as evaluating the overall presentation of the XYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX <JGJQNJ[JYMFYYMJFZINYJ[NIJSHJ\JMF[JTGYFNSJINXXZKĂ HNJSYFSI appropriate to provide a basis for our audit opinion on the standalone .SI&8Ă SFSHNFQXYFYJRJSYX Opinion In our opinion and to the best of our information and according to YMJJ]UQFSFYNTSXLN[JSYTZXYMJFKTWJXFNIXYFSIFQTSJ.SI&8Ă SFSHNFQ statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs TKYMJ(TRUFS^FXFYXY2FWHMFSINYXUWTĂ Y NSHQZINSL4YMJW

78

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Comprehensive Income), its Cash Flows and Changes in Equity for the year ended on that date. Report on Other Legal and Regulatory Requirements 1.

2.

As required by the Companies (Auditorâ&#x20AC;&#x2122;s Report) Order, 2016 (the â&#x20AC;&#x153;Orderâ&#x20AC;?) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122;, a XYFYJRJSYTSYMJRFYYJWXXUJHNĂ JINSUFWFLWFUMXFSITKYMJ 4WIJWYTYMJJ]YJSYFUUQNHFGQJ As required by Section 143(3) of the Act, we report that: (a) We have sought and obtained all the information and J]UQFSFYNTSX\MNHMYTYMJGJXYTKTZWPST\QJILJFSIGJQNJK were necessary for the purposes of our audit; (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears KWTRTZWJ]FRNSFYNTSTKYMTXJGTTPX H 9MJ 'FQFSHJ 8MJJY YMJ 8YFYJRJSY TK 5WTĂ Y FSI 1TXX (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account; I .S TZW TUNSNTS YMJ FKTWJXFNI XYFSIFQTSJ .SI &8 Ă SFSHNFQ statements comply with the Indian Accounting Standards XUJHNĂ JI ZSIJW 8JHYNTS  TK YMJ &HY WJFI \NYM YMJ Companies (Indian Accounting Standards) Rules, 2015, as amended; (e) On the basis of the written representations received from the directors as on 31st March, 2017 taken on record by the 'TFWI TK )NWJHYTWX STSJ TK YMJ INWJHYTWX NX INXVZFQNĂ JI FX on 31st March, 2017 from being appointed as a director in terms of Section 164(2) of the Act; K <NYMWJXUJHYYTYMJFIJVZFH^TKYMJNSYJWSFQĂ SFSHNFQHTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL TK YMJ (TRUFS^ FSI YMJ TUJWFYNSL effectiveness of such controls, refer to our separate Report in Annexure â&#x20AC;&#x2DC;Bâ&#x20AC;&#x2122;; and (g) With respect to the other matters to be included in the Auditorâ&#x20AC;&#x2122;s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the J]UQFSFYNTSXLN[JSYTZX (1) the Company has disclosed the impact of pending QNYNLFYNTSX TS NYX Ă SFSHNFQ UTXNYNTS NS NYX XYFSIFQTSJ .SI &8 Ă SFSHNFQ XYFYJRJSYX 7JKJW 3TYJ  YT YMJ XYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX (2) the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; (3) there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and (4) The Company has provided requisite disclosures NS 3TYJ  YT YMJXJ XYFSIFQTSJ .SI &8 Ă SFSHNFQ XYFYJRJSYXFXYTYMJMTQINSLXTK8UJHNĂ JI'FSP3TYJX TS3T[JRGJWFSI)JHJRGJWFX\JQQ FXIJFQNSLXNS8UJHNĂ JI'FSP3TYJXIZWNSLYMJUJWNTI KWTR3T[JRGJWYT)JHJRGJW'FXJI on audit procedures performed and the representations provided to us by the management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.

For SHARP & TANNAN CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Vinayak M. Padwal PARTNER 2JRGJWXMNU3T 5QFHJ3J\)JQMN Dated: 26th May, 2017

For CHATURVEDI & SHAH CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Parag D. Mehta PARTNER 2JRGJWXMNU3T


ANNEXURE â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122; TO THE INDEPENDENT AUDITORSâ&#x20AC;&#x2122; REPORT

N

.SWJXUJHYTKNYXĂ ]JIFXXJYX (a)

YF] NSHTRJ YF] HJXX FSI FS^ TYMJW XYFYZYTW^ IZJX  MF[J generally been regularly deposited with the appropriate authorities though there has been a slight delay in few cases \NYMWJLFWIXYTXFQJXYF]JSYW^YF]XJW[NHJYF]FSINSHTRJ YF] YF]IJIZHYJIFYXTZWHJ

The Company has maintained proper records showing full particulars including quantitative details and situation of Ă ]JIFXXJYX



G &XJ]UQFNSJIYTZXYMJXJĂ ]JIFXXJYXMF[JGJJSUM^XNHFQQ^ [JWNĂ JI G^ YMJ RFSFLJRJSY NS FHHTWIFSHJ \NYM F UMFXJI UWTLWFRRJTK[JWNĂ HFYNTS\MNHMNSTZWTUNSNTSNXWJFXTSFGQJ considering the size of the Company and nature of its assets. 9MJKWJVZJSH^TKUM^XNHFQ[JWNĂ HFYNTSNXWJFXTSFGQJFSIST RFYJWNFQINXHWJUFSHNJX\JWJSTYNHJITSXZHM[JWNĂ HFYNTS



H &HHTWINSLYTYMJNSKTWRFYNTSFSIJ]UQFSFYNTSXLN[JSYTZX the title deeds of immovable properties are held in the name of the Company.

NN

(REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE)

&XJ]UQFNSJIYTZXNS[JSYTWNJXMF[JGJJSUM^XNHFQQ^[JWNĂ JIG^ the management during the year other than inventory lying with YMNWIUFWYNJX.STZWTUNSNTSYMJKWJVZJSH^TKXZHM[JWNĂ HFYNTSNX reasonable. In respect of inventory lying with third parties, we MF[J WJQNJI TS YMJ HTSĂ WRFYNTSX TGYFNSJI G^ YMJ RFSFLJRJSY KWTRXZHMUFWYNJX9MJINXHWJUFSHNJXSTYNHJITSXZHM[JWNĂ HFYNTS which were not material, have been properly dealt with in the books of account.

NNN &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ Company has not granted any loans, secured or unsecured to Ă WRXQNRNYJIQNFGNQNY^UFWYSJWXMNUXTWTYMJWUFWYNJXHT[JWJINSYMJ WJLNXYJWRFNSYFNSJIZSIJW8JHYNTSTKYMJ&HY9MJ(TRUFS^ has granted unsecured loans to companies covered in the register RFNSYFNSJIZSIJW8JHYNTSTKYMJ&HY (a)

the terms and conditions are not prejudicial to the Companyâ&#x20AC;&#x2122;s interest;

(b)

the receipts of principal amounts and interest have been regular / as per stipulations; and

(c)

there are no overdue amounts for more than ninety days.

N[ &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ (TRUFS^MFXHTRUQNJI\NYMYMJUWT[NXNTSXTK8JHYNTSXFSI TKYMJ&HYNSWJXUJHYTKLWFSYTKQTFSXRFPNSLNS[JXYRJSYX providing guarantees and securities.





&HHTWINSLYTYMJNSKTWRFYNTSFSIJ]UQFSFYNTSXLN[JSYTZX no undisputed amount payable in respect of provident fund, JRUQT^JJX¸ XYFYJ NSXZWFSHJ NSHTRJ YF] XFQJX YF] XJW[NHJ YF]IZY^TKHZXYTRXIZY^TKJ]HNXJ[FQZJFIIJIYF]HJXX and other material statutory dues were in arrears as at XY2FWHMKTWFUJWNTITKRTWJYMFSXN]RTSYMXKWTR the date they became payable.

 G &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX FSIYMJWJHTWIXJ]FRNSJIG^ZXYMJUFWYNHZQFWXTKNSHTRJ YF]XFQJXYF]XJW[NHJYF]IZY^TKHZXYTRXIZY^TKJ]HNXJ FSI[FQZJFIIJIYF]FXFYXY2FWHM\MNHMMF[JSTY been deposited on account of a dispute pending, are as under:

3FRJTKYMJ8YFYZYJ

3FYZWJTK Amount the disputed ` crore* dues

We have broadly reviewed the books of account and records RFNSYFNSJIG^YMJ(TRUFS^XUJHNĂ JIG^YMJ(JSYWFQ,T[JWSRJSY KTWYMJRFNSYJSFSHJTKHTXYWJHTWIXZSIJW8JHYNTS TKYMJ Act with respect to its manufacturing activities and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. The contents of these accounts FSIWJHTWIXMF[JSTYGJJSJ]FRNSJIG^ZX

[NN F &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX FSI TS YMJ GFXNX TK TZW J]FRNSFYNTS  TK YMJ WJHTWIX TK the Company, amount deducted / accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ&#x20AC;&#x2122; state insurance, duty of customs, IZY^TKJ]HNXJXFQJXYF][FQZJFIIJIYF]JSYW^YF]XJW[NHJ

Forum where disputes is pending

9MJ.SHTRJ9F]&HY 9F].SYJWJXY  and Penalty

13.15

2011-12 2013-14

Commissionerate (Appeals)

9MJ(JSYWFQ*]HNXJ &HY9MJ (ZXYTRX&HY FSI8JW[NHJ9F] under the Finance &HY

0.21

2001-02 and 2002-03

High Court

10.77

 YT 2014-15

Tribunal / CESTAT



2002-03 to 2015-16

Commissionerate (Appeals)

Duty, 8JW[NHJYF] Interest and Penalty

The Central Sales 9F].SYJWJXY 9F]&HY1THFQ and Penalty 8FQJX9F]&HYFSI <TWPX(TSYWFHY9F] Act

1.14

    2006-07

High Court



   2000-01 to 2003-04, 2005-06 to  2011-12, 2014-15

106.42

YT Commissionerate  (Appeals) 2001-02 to 2014-15

[ &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ Company has not accepted any deposits from the public during the year. Accordingly, the Paragraph 3(v) of the Order is not applicable to the Company. (vi)

Period to which the amount relates

CESTAT / Tribunal

(*net of pre-deposit paid in getting the stay / appeal admitted)

[NNN &HHTWINSLYTYMJNSKTWRFYNTSFSIJ]UQFSFYNTSXLN[JSYTZXFSIFX UJWYMJWJHTWIXTKYMJ(TRUFS^J]FRNSJIG^ZXYMJ(TRUFS^ has not defaulted in repayment of loans or borrowings to banks. The Company has not taken any loans or borrowings from Ă SFSHNFQ NSXYNYZYNTSX FSI ,T[JWSRJSY 9MJ (TRUFS^ MFX STY issued any debentures.

FINANCIALS

79


ANNEXURE â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122; TO THE INDEPENDENT AUDITORSâ&#x20AC;&#x2122; REPORT

N] &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ Company has not raised money by way of initial public offer or further public offer (including debt instruments). In our opinion FSI FHHTWINSL YT YMJ J]UQFSFYNTSX LN[JS YT ZX TS FS T[JWFQQ basis, the term loans were applied for the purposes for which those were raised. ] )ZWNSLYMJHTZWXJTKTZWJ]FRNSFYNTSTKYMJGTTPXFSIWJHTWIXTK the Company carried out in accordance with generally accepted auditing practices in India and according to the information and J]UQFSFYNTSXLN[JSYTZX\JMF[JSJNYMJWHTRJFHWTXXFS^KWFZI G^YMJ(TRUFS^TWFS^KWFZITSYMJ(TRUFS^G^NYXTKĂ HJWXTW employees noticed or reported during the year nor have we been informed of such case by management. ]N &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ managerial remuneration has been paid or provided in accordance \NYM YMJ FUUWT[FQX RFSIFYJI G^ YMJ UWT[NXNTSX TK 8JHYNTS  read with Schedule V to the Act.

(Contd.)

]N[ &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures IZWNSLYMJ^JFW&HHTWINSLQ^YMJ5FWFLWFUM ]N[TKYMJ4WIJWNX not applicable to the Company. ][ &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX the Company has not entered into any non-cash transactions with directors or persons connected with him during the year. &HHTWINSLQ^YMJ5FWFLWFUM ][TKYMJ4WIJWNXSTYFUUQNHFGQJYT the Company. ][N &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ Company is not required to be registered under Section 45-IA of YMJ7JXJW[J'FSPTK.SINF&HY

]NN &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX YMJ (TRUFS^ NX STY F 3NIMN (TRUFS^ &HHTWINSLQ^ YMJ 5FWFLWFUM  ]NNTKYMJ4WIJWNXSTYFUUQNHFGQJYTYMJ(TRUFS^

For SHARP & TANNAN CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T<

]NNN &HHTWINSL YT YMJ NSKTWRFYNTS FSI J]UQFSFYNTSX LN[JS YT ZX all transactions with the related parties are in compliance with 8JHYNTSX  FSI  TK YMJ &HY \MJWJ FUUQNHFGQJ FSI YMJ relevant details have been disclosed in the standalone Ind AS Ă SFSHNFQ XYFYJRJSYX JYH FX WJVZNWJI G^ YMJ FUUQNHFGQJ .SINFS Accounting Standards.

Vinayak M. Padwal PARTNER 2JRGJWXMNU3T

80

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

5QFHJ3J\)JQMN Dated: 26th May, 2017

For CHATURVEDI & SHAH CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Parag D. Mehta PARTNER 2JRGJWXMNU3T


ANNEXURE â&#x20AC;&#x2DC;Bâ&#x20AC;&#x2122; TO THE INDEPENDENT AUDITORSâ&#x20AC;&#x2122; REPORT

<JMF[JFZINYJIYMJNSYJWSFQĂ SFSHNFQHTSYWTQXT[JWĂ SFSHNFQWJUTWYNSL of CG Power and Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the â&#x20AC;&#x153;Companyâ&#x20AC;?) as of 31st March, NSHTSOZSHYNTS\NYMTZWFZINYTKYMJXYFSIFQTSJ.SI&8Ă SFSHNFQ statements of the Company for the year ended on that date. Managementâ&#x20AC;&#x2122;s Responsibility for Internal Financial Controls The Companyâ&#x20AC;&#x2122;s management is responsible for establishing and RFNSYFNSNSLNSYJWSFQĂ SFSHNFQHTSYWTQXGFXJITSYMJNSYJWSFQHTSYWTQT[JW Ă SFSHNFQWJUTWYNSLHWNYJWNFJXYFGQNXMJIG^YMJ(TRUFS^HTSXNIJWNSLYMJ JXXJSYNFQHTRUTSJSYXTKNSYJWSFQHTSYWTQXYFYJINSYMJ,ZNIFSHJ3TYJ on Audit of Internal Financial Controls Over Financial Reporting (the Âľ,ZNIFSHJ3TYJÂśNXXZJIG^YMJ.SXYNYZYJTK(MFWYJWJI&HHTZSYFSYXTK India (ICAI). These responsibilities include the design, implementation FSI RFNSYJSFSHJ TK FIJVZFYJ NSYJWSFQ Ă SFSHNFQ HTSYWTQX YMFY \JWJ TUJWFYNSL JKKJHYN[JQ^ KTW JSXZWNSL YMJ TWIJWQ^ FSI JKĂ HNJSY HTSIZHY of its business, including adherence to Companyâ&#x20AC;&#x2122;s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, FSIYMJYNRJQ^UWJUFWFYNTSTKWJQNFGQJĂ SFSHNFQNSKTWRFYNTSFXWJVZNWJI under the Companies Act, 2013 (the â&#x20AC;&#x153;Actâ&#x20AC;?). Auditorsâ&#x20AC;&#x2122; Responsibility 4ZWWJXUTSXNGNQNY^NXYTJ]UWJXXFSTUNSNTSTSYMJ(TRUFS^¸XNSYJWSFQ Ă SFSHNFQ HTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL GFXJI TS TZW FZINY <J HTSIZHYJI TZW FZINY NS FHHTWIFSHJ \NYM YMJ ,ZNIFSHJ 3TYJ FSI YMJ Standards on Auditing, issued by ICAI and deemed to be prescribed ZSIJW8JHYNTS TKYMJ&HYYTYMJJ]YJSYFUUQNHFGQJYTFSFZINY TK NSYJWSFQ Ă SFSHNFQ HTSYWTQX GTYM FUUQNHFGQJ YT FS FZINY TK .SYJWSFQ Financial Controls and both issued by the ICAI. Those Standards and YMJ,ZNIFSHJ3TYJWJVZNWJYMFY\JHTRUQ^\NYMJYMNHFQWJVZNWJRJSYX and plan and perform the audit to obtain reasonable assurance about \MJYMJW FIJVZFYJ NSYJWSFQ Ă SFSHNFQ HTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence FGTZY YMJ FIJVZFH^ TK YMJ NSYJWSFQ Ă SFSHNFQ HTSYWTQX X^XYJR T[JW Ă SFSHNFQ WJUTWYNSL FSI YMJNW TUJWFYNSL JKKJHYN[JSJXX 4ZW FZINY TK NSYJWSFQ Ă SFSHNFQ HTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL NSHQZIJI TGYFNSNSL FSZSIJWXYFSINSLTKNSYJWSFQĂ SFSHNFQHTSYWTQXT[JWĂ SFSHNFQWJUTWYNSL FXXJXXNSL YMJ WNXP YMFY F RFYJWNFQ \JFPSJXX J]NXYX FSI YJXYNSL FSI evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâ&#x20AC;&#x2122;s judgement, including the assessment of the risks of material RNXXYFYJRJSYTKYMJXYFSIFQTSJ.SI&8Ă SFSHNFQXYFYJRJSYX\MJYMJW due to fraud or error. <JGJQNJ[JYMFYYMJFZINYJ[NIJSHJ\JMF[JTGYFNSJINXXZKĂ HNJSYFSI appropriate to provide a basis for our audit opinion on the Companyâ&#x20AC;&#x2122;s NSYJWSFQĂ SFSHNFQHTSYWTQXX^XYJRT[JWĂ SFSHNFQWJUTWYNSL

(REFERRED TO IN PARAGRAPH 2(F) OF OUR REPORT OF EVEN DATE)

Meaning of Internal Financial Controls Over Financial Reporting & (TRUFS^¸X NSYJWSFQ Ă SFSHNFQ HTSYWTQ T[JW Ă SFSHNFQ WJUTWYNSL NX a process designed to provide reasonable assurance regarding YMJ WJQNFGNQNY^ TK Ă SFSHNFQ WJUTWYNSL FSI YMJ UWJUFWFYNTS TK Ă SFSHNFQ XYFYJRJSYX KTW J]YJWSFQ UZWUTXJX NS FHHTWIFSHJ \NYM LJSJWFQQ^ FHHJUYJIFHHTZSYNSLUWNSHNUQJX&(TRUFS^¸XNSYJWSFQĂ SFSHNFQHTSYWTQ T[JW Ă SFSHNFQ WJUTWYNSL NSHQZIJX YMTXJ UTQNHNJX FSI UWTHJIZWJX YMFY (1) pertain to the maintenance of records that, in reasonable detail, FHHZWFYJQ^ FSI KFNWQ^ WJĂ&#x201A;JHY YMJ YWFSXFHYNTSX FSI INXUTXNYNTSX TK the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ă SFSHNFQXYFYJRJSYXNSFHHTWIFSHJ\NYMLJSJWFQQ^FHHJUYJIFHHTZSYNSL UWNSHNUQJX FSI YMFY WJHJNUYX FSI J]UJSINYZWJX TK YMJ (TRUFS^ FWJ being made only in accordance with authorisations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâ&#x20AC;&#x2122;s assets that could have a material JKKJHYTSYMJĂ SFSHNFQXYFYJRJSYX Inherent Limitations of Internal Financial Controls Over Financial Reporting 'JHFZXJ TK YMJ NSMJWJSY QNRNYFYNTSX TK NSYJWSFQ Ă SFSHNFQ HTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL NSHQZINSL YMJ UTXXNGNQNY^ TK HTQQZXNTS TW NRUWTUJW management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any J[FQZFYNTSTKYMJNSYJWSFQĂ SFSHNFQHTSYWTQXT[JWĂ SFSHNFQWJUTWYNSLYT KZYZWJUJWNTIXFWJXZGOJHYYTYMJWNXPYMFYYMJNSYJWSFQĂ SFSHNFQHTSYWTQ T[JWĂ SFSHNFQWJUTWYNSLRF^GJHTRJNSFIJVZFYJGJHFZXJTKHMFSLJX in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, an adequate NSYJWSFQ Ă SFSHNFQ HTSYWTQX X^XYJR T[JW Ă SFSHNFQ WJUTWYNSL FSI XZHM NSYJWSFQ Ă SFSHNFQ HTSYWTQX T[JW Ă SFSHNFQ WJUTWYNSL \JWJ TUJWFYNSL effectively as at 31st March, 2017, based on the internal control over Ă SFSHNFQWJUTWYNSLHWNYJWNFJXYFGQNXMJIG^YMJ(TRUFS^HTSXNIJWNSLYMJ JXXJSYNFQHTRUTSJSYXTKNSYJWSFQHTSYWTQXYFYJINSYMJ,ZNIFSHJ3TYJ issued by the ICAI.

For SHARP & TANNAN CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Vinayak M. Padwal PARTNER 2JRGJWXMNU3T

For CHATURVEDI & SHAH CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Parag D. Mehta PARTNER 2JRGJWXMNU3T

5QFHJ3J\)JQMN Dated: 26th May, 2017

FINANCIALS

81


` crore

BALANCE SHEET

AS AT 31ST MARCH, 2017

3TYJ3T

As at 31-03-2017

As at 31-03-2016

ASSETS 1.

NON-CURRENT ASSETS: (a) Property, plant and equipment (b) Capital work-in-progress (c) Investment property (d) Other intangible assets (e) Intangible assets under development (f) Financial assets (i) Investments  NN 1TFSX (iii) Others (g) Other non-current assets

5 5 6 7 7

1232.78 8.23 46.23 28.01

 2.00 50.53 

  10 11

440.65 6.64 46.89 3.18

  44.57 0.64 

1812.61 2.

3.

CURRENT ASSETS: (a) Inventories (b) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above  [ 1TFSX (vi) Others H (ZWWJSYYF]FXXJYX SJY (d) Other current assets

12

750.76

407.17

13 14 15 16 17 

5.22 1480.37 554.48 1.27 1466.97 204.27 51.86 902.69

  510.41 1.62 1051.05  26.46 



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

5417.89 160.63 7391.13

51

4450.75 251.60 6625.21

EQUITY AND LIABILITIES EQUITY: (a) Equity share capital (b) Other equity

20

125.35 4073.94

125.35 4002.70 

4199.29 LIABILITIES: 1. NON-CURRENT LIABILITIES: (a) Financial liabilities (i) Borrowings  NN 4YMJWĂ SFSHNFQQNFGNQNYNJX

2.

3.

21 22

(b) Provisions H )JKJWWJIYF]QNFGNQNYNJX SJY CURRENT LIABILITIES: (a) Financial liabilities (i) Borrowings (ii) Trade payables  NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX

503.60 1.10 504.70 59.77 214.75

23 24

25 26 27

51

5.36 52.70 240.25

 1047.40 

710.23 1091.33 255.36

 

(b) Other current liabilities (c) Provisions 3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

4.15 1.21

2056.92 285.97 68.75

  75.62

0.98 7391.13

30.10 6625.21

 3

CONTINGENT LIABILITIES AND COMMITMENTS SIGNIFICANT ACCOUNTING POLICIES

;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VMĂ&#x201A;UHUJPHSZ[H[LTLU[Z

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

).3

).3

Gautam Thapar

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

by the hand of

by the hand of

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

82

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

3TYJ3T

2016-17

2015-16

CONTINUING OPERATIONS INCOME: Revenue from operations Other income

30 31

 226.33

4761.43 200.41

TOTAL INCOME

4961.84

4451.17

EXPENSES: Cost of materials consumed

32

3144.71



Purchases of stock-in-trade

33

225.12



(MFSLJXNSNS[JSYTWNJXTKĂ SNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ

34

(168.12)



*RUQT^JJGJSJĂ YXJ]UJSXJ

35

358.32



Finance costs

36

163.83



)JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

37

91.74



4YMJWJ]UJSXJX



889.41



TOTAL EXPENSES



4705.01

PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX *]HJUYNTSFQNYJRX SJY

52

PROFIT / (LOSS) BEFORE TAX

256.83



(99.80)

(1451.71)

157.03



TAX EXPENSE: (ZWWJSYYF]

24

24.80

)JKJWWJIYF]2&9HWJINYJSYNYQJRJSY

24

(11.83)

-

)JKJWWJIYF] HWJINY

24

(13.67)

(60.13)

PROFIT / (LOSS) FROM CONTINUING OPERATIONS AFTER TAX PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAX

51

(33.27)

9F]J]UJSXJTKINXHTSYNSZJITUJWFYNTSX

24

-

105.43

(0.70)

45.30

157.73

 146.70 61.31

PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS AFTER TAX

(33.27)



PROFIT / (LOSS) FOR THE YEAR

124.46



OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNĂ JIYTUWTĂ YTWQTXX

(54.95)

 

1.73

6.75

 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNĂ JIYTUWTĂ YTWQTXX ' N .YJRXYMFY\NQQGJWJHQFXXNĂ JIYTUWTĂ YTWQTXX

-

-

 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNĂ JIYTUWTĂ YTWQTXX

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR

(53.22)

(41.13)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

71.24



56

2.52

 

56

(0.53)

1.36

56

1.99

(17.53)

Earnings per share for continuing operations (`) (Face value of equity share of ` 2 each) Earnings per share for discontinued operations (`) (Face value of equity share of ` 2 each) Earnings per share (basic and diluted) (`) (Face value of equity share of ` 2 each)

3

SIGNIFICANT ACCOUNTING POLICIES ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VMĂ&#x201A;UHUJPHSZ[H[LTLU[Z

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

by the hand of

by the hand of

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

FINANCIALS

83


` crore

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2017

2016-17

2015-16

157.03



91.74



19.10



[A] CASH FLOWS FROM OPERATING ACTIVITIES 7YVĂ&#x201A;[SVZZILMVYL[H_MYVTJVU[PU\PUNVWLYH[PVUZ Adjustments for: )JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ 5WT[NXNTSKTWNRUFNWRJSYTSĂ SFSHNFQFXXJYX Finance costs Interest income

163.83



(168.57)

 

Income from investments (net)

(0.38)



5WTĂ YTSXFQJTKNS[JXYRJSYX SJY

(7.21)



109.31



(4.41)



203.41



360.44



(Increase) / Decrease in trade and other receivables

(712.21)



(Increase) / Decrease in inventories

(357.60)



Increase / (Decrease) in trade and other payables

60.76

271.56

Increase / (Decrease) in provisions

(4.69)



(1013.74)



(653.30)

(1013.42)

:SWJFQNXJIJ]HMFSLJ LFNSQTXX SJY 5WTĂ YTSXFQJTKUWTUJWY^UQFSYFSIJVZNURJSY SJY

6WLYH[PUNWYVĂ&#x201A;[ILMVYL^VYRPUNJHWP[HSJOHUNLZ Adjustments for:

Cash (used in) / from operations )NWJHYYF]JXUFNI SJYTKWJKZSIX Net cash (used in) / from operating activities Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

[A]

(50.20)



(703.50)

(1110.06)

(29.71)



(733.21)



14.97

503.17

[B] CASH FLOWS FROM INVESTING ACTIVITIES (KK! 0UĂ&#x192;V^ZMYVTPU]LZ[PUNHJ[P]P[PLZ Sale of property, plant and equipment Proceeds from sale of investments in joint venture Sale of current investments Sale of Investments in Subsidiary Interest received Income received from investments

-

40.11

104.76



31.71

-

161.69

140.61

0.38



313.51



(41.91)



(106.47)

-

Less:6\[Ă&#x192;V^ZMYVTPU]LZ[PUNHJ[P]P[PLZ Purchase of property, plant and equipment and intangible assets Purchase of investments Investment in subsidiaries

Net cash (used in) / from investing activities Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

84

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

[B]

(0.05)

-

(148.43)



165.08

743.62

24.46

 

189.54

735.61


` crore

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2017 (Contd.)

2016-17

2015-16

Proceeds from long-term borrowings

647.70

-

Proceeds from short-term borrowings

1654.17



2301.87



(32.23)

 

(1522.12)

(21.50)

[C] CASH FLOWS FROM FINANCING ACTIVITIES (KK! 0UÃ&#x192;V^ZMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ

Less:6\[Ã&#x192;V^ZMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ Repayment of long-term borrowings Repayment of short-term borrowings Dividend paid Interest paid

5L[JHZO\ZLKPUMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ

(0.35)

(0.33)

(159.54)

 

(1714.24)

(64.36)

587.63



Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

[C]

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C)

-

(27.10)

587.63



43.96

211.65

Cash and cash equivalents at beginning of the year

510.55



Cash and cash equivalents at end of the year

554.51

510.55

Cash and cash equivalents from continuing operations

554.48



0.03

1.02

554.51

510.55

Cash and cash equivalents from discontinued operations Cash and cash equivalents from continuing and discontinued operations Notes:

 9MJHFXMÃ&#x201A;T\XYFYJRJSYMFXGJJSUWJUFWJIZSIJWYMJNSINWJHYRJYMTIFXXJYTZYNS.SINFS&HHTZSYNSL8YFSIFWI .SI&88YFYJRJSYTK(FXM+QT\X 2

Additions to property, plant and equipment and intangible assets include movements of capital work-in-progress and intangible assets under development respectively during the year.

3

Cash and cash equivalents at the end of the year represent cash and bank balances and include unrealised gain of ` 1.75 crore (Previous year gain of `HWTWJ on account of translation of foreign currency bank balances.

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

by the hand of

by the hand of

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

FINANCIALS

85


` crore

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31ST MARCH, 2017

(A) EQUITY SHARE CAPITAL For the year ended 31st March, 2017

Balance as at 1-04-2016

Changes in equity share capital during the year

Balance as at 31-03-2017

125.35

-

125.35

For the year ended 31st March, 2016

Balance as at 1-04-2015

Changes in equity share capital during the year

Balance as at 31-03-2016

125.35

-

125.35

(B) OTHER EQUITY For the year ended 31st March, 2017

Particulars Balance as at 1st April, 2016

Retained Earnings

General Reserve

Capital Reserve

Capital Redemption Reserve

Securities Premium Reserve

FVOCI Reserve

Total Equity

2911.46

415.89

672.49

12.95

18.29

(28.38)

4002.70

124.46

-

-

-

-

-

124.46

5WTĂ YKTWYMJ^JFW Other comprehensive income for the year  7JRJFXZWJRJSYXLFNSX QTXXTSIJĂ SJIGJSJĂ Y plans

(6.40)

-

-

-

-

-

(6.40)

-

-

-

-

-

(46.82)

(46.82)

3029.52

415.89

672.49

12.95

18.29

(75.20)

4073.94

Retained Earnings

General Reserve

Capital Reserve

Capital Redemption Reserve

Securities Premium Reserve

FVOCI Reserve

Total Equity











-





-

-

-

-

-



(12.75)

 +FNW[FQZJQTXXTS+;4(.Ă SFSHNFQFXXJY Balance as at 31st March, 2017 For the year ended 31st March, 2016

Particulars Balance as at 1st April, 2015 1TXXKTWYMJ^JFW Other comprehensive income for the year 

7JRJFXZWJRJSYXLFNSX QTXXTSIJĂ SJIGJSJĂ Y plans



+FNW[FQZJQTXXTS+;4(.Ă SFSHNFQFXXJY

(12.75)

-

-

-

-

-

-

-

-

-

-

 



-

-

652.53

-

-

-

652.53

2911.46

415.89

672.49

12.95

18.29

(28.38)

4002.70

Transferred on demerger Balance as at 31st March, 2016

86

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

by the hand of

by the hand of

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN ).3

2JRGJWXMNU3T

2JRGJWXMNU3T



3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

 (,5T\JWFSI.SIZXYWNFQ8TQZYNTSX1NRNYJIKTWRJWQ^PST\SFX(WTRUYTS,WJF[JX1NRNYJI YMJ¡(TRUFS^¸NXFQNRNYJIHTRUFS^NSHTWUTWFYJI FSIITRNHNQJINS.SINF\MTXJXMFWJXFWJUZGQNHQ^YWFIJI9MJWJLNXYJWJITKà HJNXQTHFYJIFYYM+QTTW(,MTZXJ)W&SSNJ'JXFSY7TFI<TWQN 2ZRGFN³.SINF9MJ(TRUFS^MFXHMFSLJINYXSFRJKWTR(WTRUYTS,WJF[JX1NRNYJIYT(,5T\JWFSI.SIZXYWNFQ8TQZYNTSX1NRNYJI w.e.f. 27th February, 2017. The Company is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application TKJKà HNJSYFSIXZXYFNSFGQJJQJHYWNHFQJSJWL^.YTKKJWXUWTIZHYXXJW[NHJXFSIXTQZYNTSXNSYMWJJRFNSGZXNSJXXXJLRJSYX[N_5T\JW8^XYJRX Industrial Systems and Automation Systems for the year ended 31st March 2017.  9MJà SFSHNFQXYFYJRJSYXTKYMJ(TRUFS^KTWYMJ^JFWJSIJIXY2FWHM\JWJFZYMTWNXJIKTWNXXZJNSFHHTWIFSHJ\NYMFWJXTQZYNTSTKYMJ directors on 26th May, 2017. 2. BASIS OF PREPARATION

 9MJĂ SFSHNFQXYFYJRJSYXTKYMJ(TRUFS^MF[JGJJSUWJUFWJINSFHHTWIFSHJ\NYM.SINFS&HHTZSYNSL8YFSIFWIX .SI&8STYNĂ JIZSIJWXJHYNTS 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.  9MJĂ SFSHNFQXYFYJRJSYXMF[JGJJSUWJUFWJITSFMNXYTWNHFQHTXYGFXNXJ]HJUYKTWYMJKTQQT\NSLFXXJYXFSIQNFGNQNYNJX\MNHMMF[JGJJSRJFXZWJI at fair value: Â&#x2030;

)JWN[FYN[JĂ SFSHNFQNSXYWZRJSYX

Â&#x2030;

(JWYFNSĂ SFSHNFQFXXJYXFSIQNFGNQNYNJXRJFXZWJIFYKFNW[FQZJ WJKJWFHHTZSYNSLUTQNH^WJLFWINSLĂ SFSHNFQNSXYWZRJSYX

 9MJà SFSHNFQXYFYJRJSYXFWJUWJXJSYJINS.SINFS7ZUJJX ¡.37¸FSIFQQ[FQZJXFWJWTZSIJIYTYMJSJFWJXYHWTWJJ]HJUY\MJSTYMJW\NXJNSINHFYJI 3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Property, plant and equipment: 

5WTUJWY^UQFSYFSIJVZNURJSYFWJXYFYJIFYTWNLNSFQHTXYSJYTKYF]IZY^HWJINYF[FNQJIQJXXFHHZRZQFYJIIJUWJHNFYNTSFSIFHHZRZQFYJI NRUFNWRJSYQTXXJXNKFS^<MJSXNLSNĂ HFSYUFWYXTKUWTUJWY^UQFSYFSIJVZNURJSYFWJWJVZNWJIYTGJWJUQFHJIFYNSYJW[FQXYMJ(TRUFS^ IJWJHTLSNXJXYMJWJUQFHJIUFWYFSIWJHTLSNXJXYMJSJ\UFWY\NYMNYXT\SFXXTHNFYJIZXJKZQQNKJFSINYNXIJUWJHNFYJIFHHTWINSLQ^1NPJ\NXJ when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the WJHTLSNYNTSHWNYJWNFFWJXFYNXĂ JI&QQTYMJWWJUFNWFSIRFNSYJSFSHJHTXYXFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXFXNSHZWWJI9MJ UWJXJSY[FQZJTKYMJJ]UJHYJIHTXYKTWYMJIJHTRRNXXNTSNSLTKYMJFXXJYFKYJWNYXZXJNXNSHQZIJINSYMJHTXYTKYMJWJXUJHYN[JFXXJYNKYMJ recognition criteria for a provision are met.



.SYJWSFQQ^RFSZKFHYZWJIUWTUJWY^UQFSYFSIJVZNURJSYFWJHFUNYFQNXJIFYKFHYTW^HTXYNSHQZINSLJ]HNXJIZY^\MJWJ[JWFUUQNHFGQJ Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the balance sheet date.



(FUNYFQJ]UJSINYZWJTSYFSLNGQJFXXJYXKTWWJXJFWHMFSIIJ[JQTURJSYNXHQFXXNĂ JIZSIJWUWTUJWY^UQFSYFSIJVZNURJSYFSINXIJUWJHNFYJI on the same basis as other property, plant and equipment.



5WTUJWY^UQFSYFSIJVZNURJSYFWJJQNRNSFYJIKWTRĂ SFSHNFQXYFYJRJSYJNYMJWTSINXUTXFQTW\MJSWJYNWJIKWTRFHYN[JZXJ1TXXJXFWNXNSL in case of retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are WJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXNSYMJ^JFWTKTHHZWWJSHJ



9MJFXXJYX¸WJXNIZFQ[FQZJXZXJKZQQN[JXFSIRJYMTIXTKIJUWJHNFYNTSFWJWJ[NJ\JIFYJFHMà SFSHNFQ^JFWJSIFSIFIOZXYJIUWTXUJHYN[JQ^ if appropriate.



)JUWJHNFYNTSTSYMJUWTUJWY^UQFSYFSIJVZNURJSYNXUWT[NIJITSXYWFNLMYQNSJRJYMTIT[JWYMJZXJKZQQNKJTKFXXJYXFXXUJHNĂ JINS8HMJIZQJ II to the Companies Act, 2013 which is in line the management estimate of the useful life of the assets. On property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis with reference to the month of addition / deletion. However, in case of the following category of property, plant and equipment, the depreciation has been provided based on the technical J[FQZFYNTSTKYMJWJRFNSNSLZXJKZQQNKJ\MNHMNXINKKJWJSYKWTRYMJTSJXUJHNĂ JINS8HMJIZQJ..YTYMJ(TRUFSNJX&HYGFXJITSYMJ management estimate of useful life. FINANCIALS

87


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

The range of useful lives of the property, plant and equipment are as follows: Â&#x2030;

5QFSYFSIRFHMNSJW^



YT^JFWX 2F]NRZR

Â&#x2030;

+ZWSNYZWJFSIĂ ]YZWJX



YT^JFWX 2F]NRZR

Â&#x2030;

4KĂ HJJVZNURJSYX



YT^JFWX

â&#x20AC;˘

Buildings

-

3 to 60 years

Â&#x2030;

;JMNHQJX



YT^JFWX

Â&#x2030;

1JFXJMTQIQFSI



YT^JFWX

Leased assets 

1JFXJMTQIQFSIXFWJFRTWYNXJIT[JWYMJUJWNTITKQJFXJ'ZNQINSLXHTSXYWZHYJITSQJFXJMTQIQFSIFWJIJUWJHNFYJIGFXJITSYMJZXJKZQQNKJ XUJHNĂ JINS8HMJIZQJ..YTYMJ(TRUFSNJX&HY\MJWJYMJQJFXJUJWNTITKQFSINXGJ^TSIYMJZXJKZQQNKJTKYMJGZNQINSL In other cases, buildings constructed on leasehold lands are amortised over the primary lease period of the lands.

3.2 Investment properties: 

.S[JXYRJSYUWTUJWYNJXHTRUWNXJUTWYNTSXTKKWJJMTQIQFSIFSITKĂ HJGZNQINSLXYMFYFWJMJQIKTWQTSLYJWRWJSYFQ^NJQIXFSITWKTWHFUNYFQ appreciation. Investment properties are initially recognised at cost. Subsequently investment property comprising of building is carried at cost less accumulated depreciation and accumulated impairment losses. The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. <MJSXNLSNĂ HFSYUFWYXTKYMJNS[JXYRJSYUWTUJWY^FWJWJVZNWJIYTGJWJUQFHJIFYNSYJW[FQXYMJ(TRUFS^IJUWJHNFYJXYMJRXJUFWFYJQ^GFXJI TSYMJNWXUJHNĂ HZXJKZQQN[JX&QQTYMJWWJUFNWFSIRFNSYJSFSHJHTXYXFWJWJHTLSNXJINSUWTĂ YFSIQTXXFXNSHZWWJI



)JUWJHNFYNTSTSGZNQINSLNXUWT[NIJIT[JWYMJJXYNRFYJIZXJKZQQN[JXFXXUJHNĂ JINS8HMJIZQJ..YTYMJ(TRUFSNJX&HY9MJWJXNIZFQ values, useful lives and depreciation method of investment properties are reviewed, and adjusted on prospective basis as appropriate, at JFHMGFQFSHJXMJJYIFYJ9MJJKKJHYXTKFS^WJ[NXNTSFWJNSHQZIJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXX\MJSYMJHMFSLJXFWNXJ Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in YMJSTYJX+FNW[FQZJXFWJIJYJWRNSJIGFXJITSFSFSSZFQJ[FQZFYNTSUJWKTWRJIG^FSFHHWJINYJIJ]YJWSFQNSIJUJSIJSY[FQZJWFUUQ^NSLF valuation model recommended by the International Valuation Standards Committee. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn KWTRZXJFSISTKZYZWJJHTSTRNHGJSJĂ YNXJ]UJHYJIKWTRNYXINXUTXFQ



9MJINKKJWJSHJGJY\JJSYMJSJYINXUTXFQUWTHJJIXFSIYMJHFWW^NSLFRTZSYTKYMJFXXJYNXWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXNS the period of de-recognition.

 0TWHPYTLU[VMUVUĂ&#x201A;UHUJPHSHZZL[Z! As at each balance sheet date, the Company assesses whether there is an indication that an asset may be impaired and also whether YMJWJNXFSNSINHFYNTSTKWJ[JWXFQTKNRUFNWRJSYQTXXWJHTLSNXJINSYMJUWJ[NTZXUJWNTIX.KFS^NSINHFYNTSJ]NXYXTW\MJSFSSZFQNRUFNWRJSY testing for an asset is required, if any, the Company determines the recoverable amount and impairment loss is recognised when the HFWW^NSLFRTZSYTKFSFXXJYJ]HJJIXNYXWJHT[JWFGQJFRTZSY Recoverable amount is determined:



â&#x20AC;˘

In the case of an individual asset, at the higher of the fair value less cost to sell and the value in use; and

Â&#x2030;

.SYMJHFXJTKHFXMLJSJWFYNSLZSNY FLWTZUTKFXXJYXYMFYLJSJWFYJXNIJSYNĂ JINSIJUJSIJSYHFXMĂ&#x201A;T\XFYYMJMNLMJWTKYMJHFXM generating unitâ&#x20AC;&#x2122;s fair value less cost to sell and the value in use.

.SFXXJXXNSL[FQZJNSZXJYMJJXYNRFYJIKZYZWJHFXMĂ&#x201A;T\XFWJINXHTZSYJIYTYMJNWUWJXJSY[FQZJZXNSLFUWJYF]INXHTZSYWFYJYMFYWJĂ&#x201A;JHYX HZWWJSYRFWPJYFXXJXXRJSYXTKYMJYNRJ[FQZJTKRTSJ^FSIYMJWNXPXXUJHNĂ HYTYMJFXXJY.SIJYJWRNSNSLKFNW[FQZJQJXXHTXYXTKINXUTXFQ WJHJSY RFWPJY YWFSXFHYNTSX FWJ YFPJS NSYT FHHTZSY .K ST XZHM YWFSXFHYNTSX HFS GJ NIJSYNĂ JI FS FUUWTUWNFYJ [FQZFYNTS RTIJQ NX ZXJI These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of YMJ(TRUFS^¸X(,:XYT\MNHMYMJNSIN[NIZFQFXXJYXFWJFQQTHFYJI9MJXJGZILJYXFSIKTWJHFXYHFQHZQFYNTSXLJSJWFQQ^HT[JWFUJWNTITKĂ [J ^JFWX+TWQTSLJWUJWNTIXFQTSLYJWRLWT\YMWFYJNXHFQHZQFYJIFSIFUUQNJIYTUWTOJHYKZYZWJHFXMĂ&#x201A;T\XFKYJWYMJĂ KYM^JFW



88

.RUFNWRJSYQTXXJXTKHTSYNSZNSLTUJWFYNTSXNSHQZINSLNRUFNWRJSYTSNS[JSYTWNJXFWJWJHTLSNXJINSYMJ8YFYJRJSYTKUWTà YFSIQTXXJ]HJUY KTWUWTUJWYNJXUWJ[NTZXQ^WJ[FQZJI\NYMYMJWJ[FQZFYNTSYFPJSYT4YMJW(TRUWJMJSXN[J.SHTRJ YMJ¡4(.¸NKFS^+TWXZHMUWTUJWYNJXYMJ impairment is recognised in OCI up to the amount of any previous revaluation.

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.4 Intangible assets: 

.SYFSLNGQJFXXJYXFWJWJHTLSNXJI\MJSNYNXUWTGFGQJYMFYYMJKZYZWJJHTSTRNHGJSJĂ YXYMFYFWJFYYWNGZYFGQJYTYMJFXXJYX\NQQĂ&#x201A;T\YTYMJ Company and the cost of the asset can be measured reliably.



.SYJWSFQQ^LJSJWFYJINSYFSLNGQJXJ]HQZINSLHFUNYFQNXJIIJ[JQTURJSYHTXYXFWJSTYHFUNYFQNXJIFSIYMJWJQFYJIJ]UJSINYZWJNXWJĂ&#x201A;JHYJINS YMJ8YFYJRJSYUWTĂ YFSIQTXXNSYMJUJWNTINS\MNHMYMJJ]UJSINYZWJNXNSHZWWJI



9MJZXJKZQQN[JXTKNSYFSLNGQJFXXJYXFWJFXXJXXJIFXJNYMJWĂ SNYJTWNSIJĂ SNYJ9MJFRTWYNXFYNTSUJWNTIFSIYMJFRTWYNXFYNTSRJYMTIKTWFS NSYFSLNGQJFXXJY\NYMFĂ SNYJZXJKZQQNKJFWJWJ[NJ\JIFYQJFXYFYYMJJSITKJFHMWJUTWYNSLUJWNTI(MFSLJXNSYMJJ]UJHYJIZXJKZQQNKJTWYMJ J]UJHYJIUFYYJWSTKHTSXZRUYNTSTKKZYZWJJHTSTRNHGJSJĂ YXJRGTINJINSYMJFXXJYFWJHTSXNIJWJIYTRTINK^YMJFRTWYNXFYNTSUJWNTITW method, as appropriate, and are treated as changes in accounting estimates.



.SYFSLNGQJFXXJYX\NYMĂ SNYJQN[JXFWJFRTWYNXJIT[JWYMJZXJKZQJHTSTRNHQNKJFSIFXXJXXJIKTWNRUFNWRJSY\MJSJ[JWYMJWJNXFSNSINHFYNTS that the intangible asset may be impaired. Intangible assets are amortised as follows:



 8UJHNFQNXJIXTKY\FWJ





4[JWFUJWNTITKĂ [JYTXN]^JFWX

 9JHMSNHFQPST\MT\





4[JWFUJWNTITKĂ [J^JFWX KWTRYMJIFYJTKF[FNQFGNQNY^KTWNYXZXJ

(3)

Commercial rights

:

Over a period of ten years; and

(4)

Concession rights

:

Over a period of ten years.

.SYFSLNGQJFXXJYX\NYMNSIJĂ SNYJZXJKZQQN[JXNKFS^FWJSTYFRTWYNXJIGZYFWJYJXYJIKTWNRUFNWRJSYFSSZFQQ^JNYMJWNSIN[NIZFQQ^TWFYYMJ HFXMLJSJWFYNSLZSNYQJ[JQ9MJFXXJXXRJSYTKNSIJĂ SNYJQNKJNXWJ[NJ\JIFSSZFQQ^YTIJYJWRNSJ\MJYMJWYMJNSIJĂ SNYJQNKJHTSYNSZJXYTGJ XZUUTWYFGQJ.KSTYYMJHMFSLJNSZXJKZQQNKJKWTRNSIJĂ SNYJYTĂ SNYJNXRFIJTSFUWTXUJHYN[JGFXNX Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and YMJHFWW^NSLFRTZSYTKYMJFXXJYFSIFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXX\MJSYMJFXXJYNXIJWJHTLSNXJI Research and development cost: â&#x20AC;˘

Research cost:



7J[JSZJJ]UJSINYZWJTSWJXJFWHMNXJ]UJSXJIZSIJWYMJWJXUJHYN[JMJFIXTKFHHTZSYXNSYMJUJWNTINS\MNHMNYNXNSHZWWJI

â&#x20AC;˘

Development cost:



)J[JQTURJSY J]UJSINYZWJ TS SJ\ UWTIZHY NX HFUNYFQNXJI FX NSYFSLNGQJ FXXJY NK FQQ TK YMJ KTQQT\NSL HWNYJWNF HFS GJ IJRTSXYWFYJI 4YMJW\NXJYMJ^FWJJ]UJSXJINSYMJUJWNTINS\MNHMYMJ^FWJNSHZWWJI (i)

The technical feasibility of completing the intangible asset so that it will be available for use or sale;

(ii)

The Company has intention to complete the development of intangible asset and use or sell it;

(iii) The Company has ability to use or sell the intangible asset; N[ 9MJRFSSJWNS\MNHMYMJUWTGFGQJKZYZWJJHTSTRNHGJSJĂ Y\NQQGJLJSJWFYJINSHQZINSLYMJJ]NXYJSHJTKFRFWPJYKTWTZYUZYTKYMJ intangible asset or the intangible asset itself or if it is to be used internally, the usefulness of the intangible asset; [ 9MJF[FNQFGNQNY^TKFIJVZFYJYJHMSNHFQĂ SFSHNFQFSITYMJWWJXTZWHJXYTHTRUQJYJYMJIJ[JQTURJSYFSIYTZXJTWXJQQYMJNSYFSLNGQJ asset; and [N 9MJ(TRUFS^MFXFGNQNY^YTRJFXZWJYMJJ]UJSINYZWJFYYWNGZYFGQJYTYMJNSYFSLNGQJFXXJYIZWNSLYMJIJ[JQTURJSYWJQNFGQ^ 

)J[JQTURJSYHTXYXTSYMJNSYFSLNGQJFXXJYXKZQĂ QQNSLYMJHWNYJWNFFWJFRTWYNXJIT[JWFUJWNTITKĂ [J^JFWXTYMJW\NXJFWJJ]UJSXJINS the period in which they are incurred.

3.5 Inventories: Inventories are carried in the balance sheet as follows: (a)

Raw materials, packing materials, construction materials, stores and spares

:

At lower of cost, on weighted average basis and net realisable value.

(b)

Work-in-progress â&#x20AC;&#x201C; Manufacturing

:

At lower of cost of material, plus appropriate production overheads and net realisable value.

(c)

Finished goods â&#x20AC;&#x201C; Manufacturing 

: 

At lower of cost of materials plus appropriate production T[JWMJFIXNSHQZINSLJ]HNXJIZY^UFNIUF^FGQJTSXZHMLTTIX and net realisable value.

(d)

Finished goods â&#x20AC;&#x201C; Trading

:

At lower of cost, on weighted average basis and net realisable value.

FINANCIALS

89


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Slow and non-moving material, obsolesces, defective inventories are duly provided for and valued at net realisable value. Goods and materials in transit are valued at actual cost incurred upto the date of balance XMJJY2FYJWNFQXFSIXZUUQNJXMJQIKTWZXJNSYMJUWTIZHYNTSTKNS[JSYTWNJXFWJSTY\WNYYJSIT\SNKYMJĂ SNXMJIUWTIZHYXNS\MNHMYMJ^\NQQ GJZXJIFWJJ]UJHYJIYTGJXTQIFYTWFGT[JHTXY 3.6 Cash and cash equivalents: Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term, highly liquid investments that FWJWJFINQ^HTS[JWYNGQJNSYTPST\SFRTZSYXTKHFXMFSI\MNHMFWJXZGOJHYYTNSXNLSNĂ HFSYWNXPTKHMFSLJXNS[FQZJ 3.7 Foreign currency transactions: 

9MJ(TRUFS^¸Xà SFSHNFQXYFYJRJSYXFWJUWJXJSYJINS.37\MNHMNXFQXTYMJ(TRUFS^¸XKZSHYNTSFQHZWWJSH^



+TWJNLSHZWWJSH^YWFSXFHYNTSXFWJWJHTWIJITSNSNYNFQWJHTLSNYNTSNSYMJKZSHYNTSFQHZWWJSH^ZXNSLYMJJ]HMFSLJWFYJFYYMJIFYJTKYMJ YWFSXFHYNTS &Y JFHM GFQFSHJ XMJJY IFYJ KTWJNLS HZWWJSH^ RTSJYFW^ NYJRX FWJ WJUTWYJI ZXNSL YMJ HQTXNSL J]HMFSLJ WFYJ *]HMFSLJ differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Companyâ&#x20AC;&#x2122;s monetary items at the HQTXNSLWFYJFWJWJHTLSNXJIFXNSHTRJTWJ]UJSXJXNSYMJUJWNTINS\MNHMYMJ^FWNXJ3TSRTSJYFW^NYJRX\MNHMFWJHFWWNJIFYMNXYTWNHFQ HTXYIJSTRNSFYJINSFKTWJNLSHZWWJSH^FWJWJUTWYJIZXNSLYMJJ]HMFSLJWFYJFYYMJIFYJTKYMJYWFSXFHYNTS3TSRTSJYFW^NYJRXRJFXZWJI FYKFNW[FQZJNSFKTWJNLSHZWWJSH^FWJYWFSXQFYJIZXNSLYMJJ]HMFSLJWFYJXFYYMJIFYJ\MJSYMJKFNW[FQZJNXIJYJWRNSJI9MJLFNSTWQTXX arising on translation of non-monetary items is recognised in line with the gain or loss of the item that gave rise to the translation difference NJYWFSXQFYNTSINKKJWJSHJXTSNYJRX\MTXJLFNSTWQTXXNXWJHTLSNXJINSTYMJWHTRUWJMJSXN[JNSHTRJTWYMJXYFYJRJSYTKUWTĂ YFSIQTXXNX FQXTWJHTLSNXJINSTYMJWHTRUWJMJSXN[JNSHTRJTWYMJXYFYJRJSYTKUWTĂ YFSIQTXXWJXUJHYN[JQ^

3.8 Service concession arrangements: The Company constructs or upgrades infrastructure (construction or upgrade services) used to provide a public service and operates and RFNSYFNSXYMFYNSKWFXYWZHYZWJ TUJWFYNTSXJW[NHJXKTWFXUJHNĂ JIUJWNTITKYNRJ These arrangements may include infrastructure used in a public-to-private service concession arrangement for its entire useful life. 

:SIJW&UUJSIN]&YT.SI&8Âł8JW[NHJ(TSHJXXNTS&WWFSLJRJSYXYMJXJFWWFSLJRJSYXFWJFHHTZSYJIKTWGFXJITSYMJSFYZWJTKYMJ HTSXNIJWFYNTS9MJNSYFSLNGQJFXXJYRTIJQNXZXJIYTYMJJ]YJSYYMFYYMJ(TRUFS^WJHJN[JXFWNLMY NJFKWFSHMNXJJYTHMFWLJZXJWXTKYMJ UZGQNHXJW[NHJ9MJĂ SFSHNFQFXXJYRTIJQNXZXJI\MJSYMJ(TRUFS^MFXFSZSHTSINYNTSFQHTSYWFHYZFQWNLMYYTWJHJN[JHFXMTWFSTYMJW Ă SFSHNFQFXXJYKWTRTWFYYMJINWJHYNTSTKYMJLWFSYTWKTWYMJHTSXYWZHYNTSXJW[NHJX<MJSYMJZSHTSINYNTSFQWNLMYYTWJHJN[JHFXMHT[JWX only part of the service, the two models are combined to account separately for each component. If the Company performs more than one service (i.e., construction or upgrade services and operation services) under a single contract or arrangement, consideration received or WJHJN[FGQJNXFQQTHFYJIG^WJKJWJSHJYTYMJWJQFYN[JKFNW[FQZJXTKYMJXJW[NHJXIJQN[JWJI\MJSYMJFRTZSYXFWJXJUFWFYJQ^NIJSYNĂ FGQJ The Company manages concession arrangements which include constructing power distribution assets for distribution of electricity. The Company maintains and services the infrastructure during the concession period. These concession arrangements set out rights and obligations related to the infrastructure and the service to be provided.



9MJWNLMYYTHTSXNIJWFYNTSLN[JXWNXJYTFSNSYFSLNGQJFXXJYFSIĂ SFSHNFQWJHJN[FGQJFSIFHHTWINSLQ^GTYMYMJNSYFSLNGQJFXXJYFSIĂ SFSHNFQ receivable models are applied. Income from the concession arrangements earned under the intangible asset model consists of the (i) fair value of contract revenue, which is deemed to be fair value of consideration transferred to acquire the asset; and (ii) payments actually WJHJN[JIKWTRYMJZXJWX9MJNSYFSLNGQJFXXJYNXFRTWYN_JIT[JWNYXJ]UJHYJIZXJKZQQNKJNSF\F^YMFYWJĂ&#x201A;JHYXYMJUFYYJWSNS\MNHMYMJFXXJY¸X JHTSTRNHGJSJĂ YXFWJHTSXZRJIG^YMJ(TRUFS^XYFWYNSLKWTRYMJIFYJ\MJSYMJWNLMYYTTUJWFYJXYFWYXYTGJZXJI'FXJITSYMJXJ UWNSHNUQJXYMJNSYFSLNGQJFXXJYNXFRTWYN_JINSQNSJ\NYMYMJFHYZFQZXFLJTKYMJXUJHNĂ HUZGQNHKFHNQNY^\NYMFRF]NRZRTKYMJIZWFYNTSTK the concession. Financial receivable is recorded at a fair value of guaranteed residual value to be received at the end of the concession period. This receivable is subsequently measured at amortised cost.



&S^FXXJYHFWWNJIZSIJWHTSHJXXNTSFWWFSLJRJSYXNXIJWJHTLSNXJITSINXUTXFQTW\MJSSTKZYZWJJHTSTRNHGJSJĂ YXFWJJ]UJHYJIKWTRNYX KZYZWJZXJTWINXUTXFQTW\MJSYMJHTSYWFHYZFQWNLMYXYTYMJĂ SFSHNFQFXXJYJ]UNWJ

3.9 Revenue recognition: Sale of goods 

90

7J[JSZJKWTRXFQJTKLTTIXNXWJHTLSNXJI\MJSFQQXNLSNĂ HFSYWNXPXFSIWJ\FWIXTKT\SJWXMNUFWJYWFSXKJWWJIYTYMJGZ^JWFXUJWYMJYJWRX TKYMJHTSYWFHYXYMJFRTZSYHFSGJRJFXZWJIWJQNFGQ^FSINYNXUWTGFGQJYMFYYMJJHTSTRNHGJSJĂ YXFXXTHNFYJI\NYMYMJYWFSXFHYNTS\NQQ Ă&#x201A;T\YTYMJ(TRUFS^+ZWYMJWWJ[JSZJNXWJHTLSNXJITSQ^NKYMJ(TRUFS^WJYFNSXSJNYMJWHTSYNSZNSLRFSFLJWNFQNS[TQ[JRJSYYTYMJIJLWJJ usually associated with ownership nor effective control over the goods sold, and the costs incurred or to be incurred in respect of the

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

YWFSXFHYNTSHFSGJRJFXZWJIWJQNFGQ^7J[JSZJFQXTNSHQZIJXJ]HNXJIZY^FSIUWNHJ[FWNFYNTSXGFXJITSYMJHTSYWFHYZFQFLWJJRJSYXFSI J]HQZIJX[FQZJFIIJIYF]XFQJXYF].YNXRJFXZWJIFYKFNW[FQZJTKHTSXNIJWFYNTSWJHJN[JITWWJHJN[FGQJSJYTKWJYZWSXFSIFQQT\FSHJX trade discount, cash discount and volume rebates. Rendering of services Revenue from sale of services is recognised as per the terms of the contract with customers based on stage of completion when the outcome of the transactions involving rendering of services can be estimated reliably. Percentage of completion method requires the Company to estimate the services performed to date as a proportion of the total services to be performed. Revenue from construction contracts Revenue from construction contracts is recognised by applying percentage of completion method after providing for foreseeable losses, if any. Percentage of completion is determined as a proportion of the cost incurred up to the reporting date to the total estimated cost to HTRUQJYJ+TWJXJJFGQJQTXXJXNKFS^TSYMJHTSYWFHYXNXWJHTLSNXJIFXFSJ]UJSXJNSYMJUJWNTINS\MNHMNYNXKTWJXJJSNWWJXUJHYN[JTKYMJ stage of completion of the contract. While determining the amount of foreseeable loss, all elements of cost and related incidental income \MNHMNXSTYNSHQZIJINSHTSYWFHYWJ[JSZJNXYFPJSNSYTHTSXNIJWFYNTS(TSYWFHYNXWJĂ&#x201A;JHYJIFYHTXYYMFYFWJJ]UJHYJIYTGJWJHT[JWFGQJYNQQ such time the outcome of the contract cannot be ascertained reliably and at realisable value thereafter. Claims are accounted as income in the year of acceptance by customer. Power distribution Revenue from power distribution business is accounted on the basis of billings to the customers and includes unbilled revenues accrued up to the end of accounting year. Customers are billed as per the tariff rates issued by Electricity Regulatory Commission. Interest is accounted on accrual basis on overdue bills. Dividend income Dividend income is accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend. Lease income 

1JFXJFLWJJRJSYX\MJWJYMJWNXPXFSIWJ\FWIXNSHNIJSYFQYTYMJT\SJWXMNUTKFSFXXJYXZGXYFSYNFQQ^[JXY\NYMYMJQJXXTWFWJWJHTLSNXJIFX TUJWFYNSLQJFXJX1JFXJWJSYFQXFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXTSXYWFNLMYQNSJGFXNXT[JWYMJYJWRTKYMJQJFXJZSQJXXYMJ UF^RJSYXYTYMJQJXXTWFWJXYWZHYZWJIYTNSHWJFXJNSQNSJ\NYMJ]UJHYJILJSJWFQNSĂ&#x201A;FYNTSYTHTRUJSXFYJKTWYMJQJXXTW¸XJ]UJHYJINSĂ&#x201A;FYNTSFW^ cost increases. Interest income



+TWFQQĂ SFSHNFQNSXYWZRJSYXRJFXZWJIFYFRTWYNXJIHTXYNSYJWJXYNSHTRJNXWJHTWIJIZXNSLYMJJKKJHYN[JNSYJWJXYWFYJ *.7\MNHMNXYMJ WFYJYMFYJ]FHYQ^INXHTZSYXYMJJXYNRFYJIKZYZWJHFXMUF^RJSYXTWWJHJNUYXYMWTZLMYMJJ]UJHYJIQNKJTKYMJĂ SFSHNFQNSXYWZRJSYTWFXMTWYJW UJWNTI\MJWJFUUWTUWNFYJYTYMJSJYHFWW^NSLFRTZSYTKYMJĂ SFSHNFQFXXJY.SYJWJXYNSHTRJNXNSHQZIJINSĂ SFSHJNSHTRJNSYMJXYFYJRJSY TKUWTĂ YFSIQTXX

,TWSV`LLILULĂ&#x201A;[Z! 

&QQJRUQT^JJGJSJĂ YXUF^FGQJ\MTQQ^\NYMNSY\JQ[JRTSYMXFKYJWYMJJSITKYMJFSSZFQWJUTWYNSLUJWNTINS\MNHMYMJJRUQT^JJXWJSIJWYMJ WJQFYJIXJW[NHJXFWJHQFXXNĂ JIFXXMTWYYJWRJRUQT^JJGJSJĂ YX'JSJĂ YXXZHMFXXFQFWNJX\FLJXXMTWYYJWRHTRUJSXFYJIFGXJSHJX UJWKTWRFSHJNSHJSYN[JXJYHFSIYMJJ]UJHYJIHTXYTKGTSZXJ]LWFYNFFWJWJHTLSNXJIIZWNSLYMJUJWNTINS\MNHMYMJJRUQT^JJWJSIJWX related service.



5F^RJSYXYTIJĂ SJIHTSYWNGZYNTSWJYNWJRJSYUQFSXFWJWJHTLSNXJIFXFSJ]UJSXJ\MJSJRUQT^JJXMF[JWJSIJWJIYMJXJW[NHJJSYNYQNSLYMJR to the contribution. The Company makes contribution towards provident fund which is administered by the trustees. The Rules of the Companyâ&#x20AC;&#x2122;s Provident Fund administered by a trust, require that if the Board of the Trustees are unable to pay interest at the rate declared by the Government ZSIJW5FWFTKYMJ*RUQT^JJX5WT[NIJSY+ZSI8HMJRJKTWYMJWJFXTSYMFYYMJWJYZWSTSNS[JXYRJSYNXQJXXKTWFS^TYMJWWJFXTS YMJSYMJIJĂ HNJSH^XMFQQGJRFIJLTTIG^YMJ(TRUFS^RFPNSLNSYJWJXYXMTWYKFQQFIJĂ SJIGJSJĂ YUQFS&HHTWINSLQ^YMJ(TRUFS^TGYFNSX FHYZFWNFQ[FQZFYNTSFSIGFXJITSYMJ[FQZFYNTSNKYMJWJNXSTIJĂ HNJSH^FXFYYMJGFQFSHJXMJJYIFYJYMJSYMJQNFGNQNY^NXWJXYWNHYJIYT\FWIX monthly contributions only.



9MJHTXYTKUWT[NINSLGJSJĂ YXZSIJWYMJIJĂ SJIGJSJĂ YUQFSNXIJYJWRNSJIZXNSLYMJUWTOJHYJIZSNYHWJINYRJYMTI\NYMFHYZFWNFQ[FQZFYNTSX GJNSLHFWWNJITZYFYJFHMGFQFSHJXMJJYIFYJ\MNHMWJHTLSNXJXJFHMUJWNTITKXJW[NHJFXLN[NSLWNXJYTFIINYNTSFQZSNYTKJRUQT^JJGJSJĂ Y JSYNYQJRJSYFSIRJFXZWJJFHMZSNYXJUFWFYJQ^YTGZNQIZUYMJĂ SFQTGQNLFYNTS

FINANCIALS

91


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



7JRJFXZWJRJSYXHTRUWNXNSLTKFHYZFWNFQLFNSXFSIQTXXJXYMJJKKJHYTKYMJFXXJYHJNQNSLFSIYMJWJYZWSTSUQFSFXXJYXJ]HQZINSLFRTZSYX NSHQZIJINSSJYNSYJWJXYTSYMJSJYIJĂ SJIGJSJĂ YQNFGNQNY^ FXXJYFWJWJHTLSNXJINRRJINFYJQ^NSYMJGFQFSHJXMJJY\NYMFHTWWJXUTSINSL IJGNYTWHWJINYYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJNSYMJUJWNTINS\MNHMYMJ^THHZW7JRJFXZWJRJSYXFWJSTYWJHQFXXNĂ JIYTYMJXYFYJRJSY TKUWTĂ YFSIQTXXNSXZGXJVZJSYUJWNTIX5FXYXJW[NHJHTXYNXWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXNSYMJUJWNTITKUQFSFRJSIRJSY



3JYNSYJWJXYNXHFQHZQFYJIG^FUUQ^NSLYMJINXHTZSYWFYJYTYMJSJYIJĂ SJIGJSJĂ YQNFGNQNY^TWFXXJY



9MJ(TRUFS^WJHTLSNXJXYMJKTQQT\NSLHMFSLJXNSYMJSJYIJĂ SJIGJSJĂ YTGQNLFYNTSZSIJWJRUQT^JJGJSJĂ YJ]UJSXJXNSYMJXYFYJRJSYTK UWTĂ YFSIQTXX â&#x20AC;˘

Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements.

Â&#x2030;

3JYNSYJWJXYJ]UJSXJTWNSHTRJ

3VUN[LYTLTWSV`LLILULĂ&#x201A;[Z 

(TRUJSXFYJIFGXJSHJX\MNHMFWJSTYJ]UJHYJIYTTHHZW\NYMNSY\JQ[JRTSYMXFKYJWYMJJSITKYMJUJWNTINS\MNHMYMJJRUQT^JJWJSIJWX YMJWJQFYJIXJW[NHJXFWJWJHTLSNXJIFXFQNFGNQNY^FYYMJUWJXJSY[FQZJTKYMJIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJGFQFSHJXMJJYIFYJ ;LYTPUH[PVUILULĂ&#x201A;[Z



9JWRNSFYNTSGJSJĂ YXFWJWJHTLSNXJIFXFSJ]UJSXJNSYMJUJWNTINS\MNHMYMJ^FWJNSHZWWJI

3.11 Borrowing costs: a)

Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalised as a part of the cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for its intended use or sale.

G &QQTYMJWGTWWT\NSLHTXYXFWJWJHTLSNXJIFXJ]UJSXJNSYMJUJWNTINS\MNHMYMJ^FWJNSHZWWJI 3.12 Segment accounting: The Chief Operational Decision Maker monitors the operating results of its business Segments separately for the purpose of making IJHNXNTSX FGTZY WJXTZWHJ FQQTHFYNTS FSI UJWKTWRFSHJ FXXJXXRJSY 8JLRJSY UJWKTWRFSHJ NX J[FQZFYJI GFXJI TS UWTĂ Y TW QTXX FSI NX RJFXZWJIHTSXNXYJSYQ^\NYMUWTĂ YTWQTXXNSYMJĂ SFSHNFQXYFYJRJSYX 

9MJ4UJWFYNSLXJLRJSYXMF[JGJJSNIJSYNĂ JITSYMJGFXNXTKYMJSFYZWJTKUWTIZHYXXJW[NHJX 

8JLRJSYWJ[JSZJNSHQZIJXXFQJXFSITYMJWNSHTRJINWJHYQ^NIJSYNĂ FGQJ\NYMFQQTHFGQJYTYMJXJLRJSYNSHQZINSLNSYJWXJLRJSYWJ[JSZJ



*]UJSXJXYMFYFWJINWJHYQ^NIJSYNĂ FGQJ\NYMFQQTHFGQJYTXJLRJSYXFWJHTSXNIJWJIKTWIJYJWRNSNSLYMJXJLRJSYWJXZQY*]UJSXJX\MNHM WJQFYJYTYMJ(TRUFS^FXF\MTQJFSISTYFQQTHFGQJYTXJLRJSYXFWJNSHQZIJIZSIJWZSFQQTHFGQJJ]UJSINYZWJ

3.

Income which relates to the Company as a whole and not allocable to segments is included in unallocable income.



8JLRJSYWJXZQYNSHQZIJXRFWLNSXTSNSYJWXJLRJSYXFQJX\MNHMFWJWJIZHJINSFWWN[NSLFYYMJUWTĂ YGJKTWJYF]TKYMJ(TRUFS^



8JLRJSY FXXJYX FSI QNFGNQNYNJX NSHQZIJ YMTXJ INWJHYQ^ NIJSYNĂ FGQJ \NYM YMJ WJXUJHYN[J XJLRJSYX :SFQQTHFGQJ FXXJYX FSI QNFGNQNYNJX represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

Inter-Segment transfer pricing: Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis. 3.13 Leases: The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, \MJYMJWKZQĂ QRJSYTKYMJFWWFSLJRJSYNXIJUJSIJSYTSYMJZXJTKFXUJHNĂ HFXXJYTWFXXJYXTWYMJFWWFSLJRJSYHTS[J^XFWNLMYYTZXJYMJ FXXJYJ[JSNKYMFYWNLMYNXSTYJ]UQNHNYQ^XUJHNĂ JINSFSFWWFSLJRJSY 

+NSFSHJQJFXJXYMFYYWFSXKJWXZGXYFSYNFQQ^FQQTKYMJWNXPXFSIGJSJĂ YXNSHNIJSYFQYTT\SJWXMNUTKYMJQJFXJINYJRFWJHFUNYFQNXJIFYYMJ HTRRJSHJRJSYTKYMJQJFXJFYYMJKFNW[FQZJTKYMJQJFXJIUWTUJWY^TWNKQT\JWFYYMJUWJXJSY[FQZJTKYMJRNSNRZRQJFXJUF^RJSYX1JFXJ UF^RJSYXFWJFUUTWYNTSJIGJY\JJSĂ SFSHJHMFWLJXFSIFWJIZHYNTSNSYMJQJFXJQNFGNQNY^XTFXYTFHMNJ[JFHTSXYFSYWFYJTKNSYJWJXYTSYMJ WJRFNSNSLGFQFSHJTKYMJQNFGNQNY^+NSFSHJHMFWLJXFWJWJHTLSNXJINSĂ SFSHJHTXYXNSYMJXYFYJRJSYTKUWTĂ YFSIQTXX A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.



92

&XXJYX FHVZNWJI TS QJFXJX \MJWJ F XNLSNĂ HFSY UTWYNTS TK YMJ WNXPX FSI WJ\FWIX TK T\SJWXMNU FWJ WJYFNSJI G^ QJXXTW FWJ HQFXXNĂ JI FX TUJWFYNSLQJFXJX1JFXJWJSYFQXFWJHMFWLJIYTYMJXYFYJRJSYTKUWTĂ YFSIQTXXTSXYWFNLMYQNSJGFXNXT[JWYMJYJWRTKYMJQJFXJZSQJXX XZHMUF^RJSYXFWJXYWZHYZWJIYTNSHWJFXJNSQNSJ\NYMJ]UJHYJILJSJWFQNSĂ&#x201A;FYNTSYTHTRUJSXFYJKTWYMJQJXXTW¸XJ]UJHYJINSĂ&#x201A;FYNTSFW^HTXY increases.

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.14 Earnings per share: 

'FXNHJFWSNSLXUJWXMFWJNXHFQHZQFYJIG^IN[NINSLYMJUWTĂ YKWTRHTSYNSZNSLTUJWFYNTSXINXHTSYNSZJITUJWFYNTSXFSIYTYFQUWTĂ YFYYWNGZYFGQJ to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period.

3.15 Taxes on income: 

9F]TSNSHTRJKTWYMJHZWWJSYUJWNTINXIJYJWRNSJITSYMJGFXNXTSJXYNRFYJIYF]FGQJNSHTRJFSIYF]HWJINYXHTRUZYJINSFHHTWIFSHJ \NYMYMJUWT[NXNTSXTKYMJWJQJ[FSYYF]QF\XFSIGFXJITSYMJJ]UJHYJITZYHTRJTKFXXJXXRJSYXFUUJFQX



(ZWWJSYNSHTRJYF]WJQFYNSLYTNYJRXWJHTLSNXJIINWJHYQ^NSJVZNY^NXWJHTLSNXJINSJVZNY^FSISTYNSYMJXYFYJRJSYTKUWTĂ YFSIQTXX 2FSFLJRJSYUJWNTINHFQQ^J[FQZFYJXUTXNYNTSXYFPJSNSYMJYF]WJYZWSX\NYMWJXUJHYYTXNYZFYNTSXNS\MNHMFUUQNHFGQJYF]WJLZQFYNTSXFWJ subject to interpretation and establishes provisions where appropriate.

Deferred tax 

)JKJWWJIYF]NXUWT[NIJIZXNSLYMJGFQFSHJXMJJYFUUWTFHMTSYJRUTWFW^INKKJWJSHJXFYYMJWJUTWYNSLIFYJGJY\JJSYMJYF]GFXJXTKFXXJYX FSIQNFGNQNYNJXFSIYMJNWHFWW^NSLFRTZSYXKTWĂ SFSHNFQWJUTWYNSLUZWUTXJXFYYMJWJUTWYNSLIFYJ



9MJHFWW^NSLFRTZSYTKIJKJWWJIYF]FXXJYXNXWJ[NJ\JIFYJFHMWJUTWYNSLIFYJFSIWJIZHJIYTYMJJ]YJSYYMFYNYNXSTQTSLJWUWTGFGQJYMFY XZKĂ HNJSYYF]FGQJUWTĂ Y\NQQGJF[FNQFGQJYTFQQT\FQQTWUFWYTKYMJIJKJWWJIYF]FXXJYYTGJZYNQNXJI:SWJHTLSNXJIIJKJWWJIYF]FXXJYXFWJ WJFXXJXXJIFYJFHMWJUTWYNSLIFYJFSIFWJWJHTLSNXJIYTYMJJ]YJSYYMFYNYMFXGJHTRJUWTGFGQJYMFYKZYZWJYF]FGQJUWTĂ YX\NQQFQQT\YMJ IJKJWWJIYF]FXXJYYTGJWJHT[JWJI



)JKJWWJIYF]FXXJYXFSIQNFGNQNYNJXFWJRJFXZWJIFYYMJYF]WFYJXYMFYFWJJ]UJHYJIYTFUUQ^NSYMJ^JFW\MJSYMJFXXJYNXWJFQNXJITWYMJ QNFGNQNY^NXXJYYQJIGFXJITSYF]WFYJX FSIYF]QF\XYMFYMF[JGJJSJSFHYJITWXZGXYFSYN[JQ^JSFHYJIFYYMJWJUTWYNSLIFYJ



)JKJWWJIYF]WJQFYNSLYTNYJRXWJHTLSNXJITZYXNIJYMJXYFYJRJSYTKUWTĂ YFSIQTXXNXWJHTLSNXJITZYXNIJYMJXYFYJRJSYTKUWTĂ YFSIQTXX )JKJWWJIYF]NYJRXFWJWJHTLSNXJINSHTWWJQFYNTSYTYMJZSIJWQ^NSLYWFSXFHYNTSJNYMJWNSTYMJWHTRUWJMJSXN[JNSHTRJTWINWJHYQ^NSJVZNY^



)JKJWWJIYF]FXXJYXFSIIJKJWWJIYF]QNFGNQNYNJXFWJTKKXJYNKFQJLFQQ^JSKTWHJFGQJWNLMYJ]NXYXYTXJYTKKHZWWJSYYF]FXXJYXFLFNSXYHZWWJSY NSHTRJYF]QNFGNQNYNJXFSIYMJIJKJWWJIYF]JXWJQFYJYTYMJXFRJYF]FGQJJSYNY^FSIYMJXFRJYF]FYNTSFZYMTWNY^



9MJGWJFPZUTKYMJRFOTWHTRUTSJSYXTKYMJIJKJWWJIYF]FXXJYXFSIQNFGNQNYNJXFXFYGFQFSHJXMJJYIFYJMFXGJJSFWWN[JIFYFKYJWXJYYNSL TKKIJKJWWJIYF]FXXJYXFSIQNFGNQNYNJX\MJWJYMJ(TRUFS^MF[JFQJLFQQ^JSKTWHJFGQJWNLMYYTXJYTKKFXXJYXFLFNSXYQNFGNQNYNJXFSI\MJWJXZHM FXXJYXFSIQNFGNQNYNJXWJQFYJYTYF]JXTSNSHTRJQJ[NJIG^YMJXFRJLT[JWSNSLYF]FYNTSQF\X

3.16 Provisions, Contingent liabilities, Contingent assets and Commitments: General Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that FSTZYĂ&#x201A;T\TKWJXTZWHJXJRGTI^NSLJHTSTRNHGJSJĂ YX\NQQGJWJVZNWJIYTXJYYQJYMJTGQNLFYNTSFSIFWJQNFGQJJXYNRFYJHFSGJRFIJTKYMJ FRTZSYTKYMJTGQNLFYNTS<MJSYMJ(TRUFS^J]UJHYXXTRJTWFQQTKFUWT[NXNTSYTGJWJNRGZWXJI 

.KYMJJKKJHYTKYMJYNRJ[FQZJTKRTSJ^NXRFYJWNFQUWT[NXNTSXFWJINXHTZSYJIZXNSLFHZWWJSYUWJYF]WFYJYMFYWJĂ&#x201A;JHYX\MJSFUUWTUWNFYJYMJ WNXPXXUJHNĂ HYTYMJQNFGNQNY^<MJSINXHTZSYNSLNXZXJIYMJNSHWJFXJNSYMJUWT[NXNTSIZJYTYMJUFXXFLJTKYNRJNXWJHTLSNXJIFXFĂ SFSHJ cost. Contingent liability is disclosed in the case of: Â&#x2030;

& UWJXJSY TGQNLFYNTS FWNXNSL KWTR UFXY J[JSYX \MJS NY NX STY UWTGFGQJ YMFY FS TZYĂ&#x201A;T\ TK WJXTZWHJX \NQQ GJ WJVZNWJI YT XJYYQJ YMJ obligation;

â&#x20AC;˘

A present obligation arising from past events, when no reliable estimate is possible; and

Â&#x2030;

&UTXXNGQJTGQNLFYNTSFWNXNSLKWTRUFXYJ[JSYXZSQJXXYMJUWTGFGNQNY^TKTZYĂ&#x201A;T\TKWJXTZWHJXNXWJRTYJ

Commitments include the amount of purchase order (net of advances) issued to parties for completion / purchase of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date. Warranty provisions Provisions for warranty-related costs are recognised when the product is sold or service provided to the customer. Initial recognition is GFXJITSMNXYTWNHFQJ]UJWNJSHJ9MJNSNYNFQJXYNRFYJTK\FWWFSY^WJQFYJIHTXYXNXWJ[NXJIFSSZFQQ^ Liquidated damages 

5WT[NXNTSKTWQNVZNIFYJIIFRFLJXFWJWJHTLSNXJITSHTSYWFHYXKTW\MNHMIJQN[JW^IFYJXFWJJ]HJJIJIFSIHTRUZYJINSWJFXTSFGQJRFSSJW Other litigation claims



5WT[NXNTSKTWQNYNLFYNTSWJQFYJITGQNLFYNTSWJUWJXJSYXQNFGNQNYNJXYMFYFWJJ]UJHYJIYTRFYJWNFQNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ Onerous contracts



& UWT[NXNTS KTW TSJWTZX HTSYWFHYX NX RJFXZWJI FY YMJ UWJXJSY [FQZJ TK YMJ QT\JW J]UJHYJI HTXYX TK YJWRNSFYNSL YMJ HTSYWFHY FSI YMJ J]UJHYJI HTXY TK HTSYNSZNSL \NYM YMJ HTSYWFHY 'JKTWJ F UWT[NXNTS NX JXYFGQNXMJI YMJ (TRUFS^ WJHTLSNXJX NRUFNWRJSY TS YMJ FXXJYX pertaining to the contract.

FINANCIALS

93


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.17 Exceptional items: 

4SHJWYFNSTHHFXNTSXYMJXN_JY^UJTWNSHNIJSHJTKFSNYJRTKNSHTRJTWJ]UJSXJUJWYFNSNSLYTYMJTWINSFW^FHYN[NYNJXTKYMJ(TRUFS^ NXXZHMYMFYNYXINXHQTXZWJNRUWT[JXYMJZSIJWXYFSINSLTKYMJUJWKTWRFSHJTKYMJ(TRUFS^XZHMNSHTRJTWJ]UJSXJNXHQFXXNĂ JIFXFS J]HJUYNTSFQNYJRFSIFHHTWINSLQ^INXHQTXJINSYMJSTYJXFHHTRUFS^NSLYTYMJĂ SFSHNFQXYFYJRJSYX

*\YYLU[HUKUVUJ\YYLU[JSHZZPĂ&#x201A;JH[PVU! 

9MJ(TRUFS^UWJXJSYXFXXJYXFSIQNFGNQNYNJXNSYMJGFQFSHJXMJJYGFXJITSHZWWJSYSTSHZWWJSYHQFXXNĂ HFYNTS An asset is current when it is: Â&#x2030;

*]UJHYJIYTGJWJFQNXJITWNSYJSIJIYTGJXTQITWHTSXZRJINSSTWRFQTUJWFYNSLH^HQJ

â&#x20AC;˘

Held primarily for the purpose of trading,

Â&#x2030;

*]UJHYJIYTGJWJFQNXJI\NYMNSY\JQ[JRTSYMXFKYJWYMJWJUTWYNSLUJWNTI Or

Â&#x2030; 

(FXM TW HFXM JVZN[FQJSY ZSQJXX WJXYWNHYJI KWTR GJNSL J]HMFSLJI TW ZXJI YT XJYYQJ F QNFGNQNY^ KTW FY QJFXY Y\JQ[J RTSYMX FKYJW YMJ reporting period.

&QQTYMJWFXXJYXFWJHQFXXNĂ JIFXSTSHZWWJSY A liability is current when: Â&#x2030;

.YNXJ]UJHYJIYTGJXJYYQJINSSTWRFQTUJWFYNSLH^HQJ

â&#x20AC;˘

It is held primarily for the purpose of trading,

â&#x20AC;˘

It is due to be settled within twelve months after the reporting period, Or

â&#x20AC;˘

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.



)JKJWWJIYF]FXXJYXQNFGNQNYNJXFWJHQFXXNĂ JIFXSTSHZWWJSY



&QQTYMJWQNFGNQNYNJXFWJHQFXXNĂ JIFXSTSHZWWJSY

3.19 Fair value measurement: 

9MJ(TRUFS^RJFXZWJXĂ SFSHNFQNSXYWZRJSYXXZHMFXIJWN[FYN[JXFSIHJWYFNSNS[JXYRJSYXFYKFNW[FQZJFYJFHMGFQFSHJXMJJYIFYJ Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: â&#x20AC;˘

In the principal market for the asset or liability, Or

â&#x20AC;˘

In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. 

&KFNW[FQZJRJFXZWJRJSYTKFSTSà SFSHNFQFXXJYYFPJXNSYTFHHTZSYFRFWPJYUFWYNHNUFSY¸XFGNQNY^YTLJSJWFYJJHTSTRNHGJSJà YXG^ZXNSL the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.



9MJ(TRUFS^ZXJX[FQZFYNTSYJHMSNVZJXYMFYFWJFUUWTUWNFYJNSYMJHNWHZRXYFSHJXFSIKTW\MNHMXZKĂ HNJSYIFYFFWJF[FNQFGQJYTRJFXZWJ KFNW[FQZJRF]NRNXNSLYMJZXJTKWJQJ[FSYTGXJW[FGQJNSUZYXFSIRNSNRNXNSLYMJZXJTKZSTGXJW[FGQJNSUZYX



&QQ FXXJYX FSI QNFGNQNYNJX KTW \MNHM KFNW [FQZJ NX RJFXZWJI TW INXHQTXJI NS YMJ Ă SFSHNFQ XYFYJRJSYX FWJ HFYJLTWNXJI \NYMNS YMJ KFNW [FQZJ MNJWFWHM^IJXHWNGJIFXKTQQT\XGFXJITSYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNĂ HFSYYTYMJKFNW[FQZJRJFXZWJRJSYFXF\MTQJ Â&#x2030;

1J[JQ´6ZTYJI ZSFIOZXYJIRFWPJYUWNHJXNSFHYN[JRFWPJYXKTWNIJSYNHFQFXXJYXTWQNFGNQNYNJX

Â&#x2030;

1J[JQ´;FQZFYNTSYJHMSNVZJXKTW\MNHMYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNà HFSYYTYMJKFNW[FQZJRJFXZWJRJSYNXINWJHYQ^TWNSINWJHYQ^ observable

Â&#x2030;

1J[JQ´;FQZFYNTSYJHMSNVZJXKTW\MNHMYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNà HFSYYTYMJKFNW[FQZJRJFXZWJRJSYNXZSTGXJW[FGQJ

For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have THHZWWJIGJY\JJSQJ[JQXNSYMJMNJWFWHM^G^WJFXXJXXNSLHFYJLTWNXFYNTS GFXJITSYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNĂ HFSYYTYMJKFNW[FQZJ measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, HMFWFHYJWNXYNHXFSIWNXPXTKYMJFXXJYTWQNFGNQNY^FSIYMJQJ[JQTKYMJKFNW[FQZJMNJWFWHM^FXJ]UQFNSJIFGT[J

94

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.20 Non-current assets held for sale and discontinued operations: 

3TSHZWWJSYFXXJYXFSIINXUTXFQLWTZUXFWJHQFXXNĂ JIFXMJQIKTWXFQJNKYMJNWHFWW^NSLFRTZSYX\NQQGJWJHT[JWJIUWNSHNUFQQ^YMWTZLMFXFQJ YWFSXFHYNTSWFYMJWYMFSYMWTZLMHTSYNSZNSLZXJ3TSHZWWJSYFXXJYXFSIINXUTXFQLWTZUXHQFXXNĂ JIFXMJQIKTWXFQJFWJRJFXZWJIFYYMJ lower of their carrying amount and fair value less costs to sell. This condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which XMTZQIGJJ]UJHYJIYTVZFQNK^KTWWJHTLSNYNTSFXFHTRUQJYJIXFQJ\NYMNSTSJ^JFWKWTRYMJIFYJTKHQFXXNĂ HFYNTS



)NXHTSYNSZJITUJWFYNTSXFWJJ]HQZIJIKWTRYMJWJXZQYXTKHTSYNSZNSLTUJWFYNTSXFSIFWJUWJXJSYJIFXFXNSLQJFRTZSYFXUWTĂ YTWQTXXFKYJW YF]KWTRINXHTSYNSZJITUJWFYNTSXNSYMJXYFYJRJSYTKUWTĂ YFSIQTXX&QXTHTRUFWFYN[J8YFYJRJSYTKUWTĂ YFSIQTXXNXWJUWJXJSYJIFXNKYMJ operation had been discontinued from the start of the comparative period.



&XXJYXFSIQNFGNQNYNJXHQFXXNĂ JIFXMJQIKTWINXUTXFQFWJUWJXJSYJIXJUFWFYJQ^KWTRTYMJWFXXJYXFSIQNFGNQNYNJXNSYMJGFQFSHJXMJJY



&INXUTXFQLWTZUVZFQNĂ JXFXINXHTSYNSZJITUJWFYNTSNKNYNXFHTRUTSJSYTKYMJ(TRUFS^YMFYJNYMJWMFXGJJSINXUTXJITKTWNXHQFXXNĂ JI as held for sale, and: â&#x20AC;˘

Represents a separate major line of business or geographical area of operations,

â&#x20AC;˘

Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, Or

Â&#x2030; 

.XFXZGXNINFW^FHVZNWJIJ]HQZXN[JQ^\NYMF[NJ\YTWJXFQJ

9MJ(TRUFS^ITJXSTYIJUWJHNFYJ TWFRTWYNXJFSTSHZWWJSYFXXJY\MNQJNYNXHQFXXNĂ JIFXMJQIKTWXFQJTW\MNQJNYNXUFWYTKFINXUTXFQ LWTZUHQFXXNĂ JIFXMJQIKTWXFQJ

3.21 Financial instruments: (i)

Financial assets: Initial recognition and measurement



&QQĂ SFSHNFQFXXJYXFWJWJHTLSNXJINSNYNFQQ^FYKFNW[FQZJUQZXNSYMJHFXJTKĂ SFSHNFQFXXJYXSTYWJHTWIJIFYKFNW[FQZJYMWTZLMUWTĂ YTW QTXXYWFSXFHYNTSHTXYXYMFYFWJFYYWNGZYFGQJYTYMJFHVZNXNYNTSTKYMJĂ SFSHNFQFXXJY



+NSFSHNFQ FXXJYX FWJ HQFXXNĂ JI FY NSNYNFQ WJHTLSNYNTS FX Ă SFSHNFQ FXXJYX RJFXZWJI FY KFNW [FQZJ TW FX Ă SFSHNFQ FXXJYX RJFXZWJI FY amortised cost. Subsequent measurement +TWUZWUTXJXTKXZGXJVZJSYRJFXZWJRJSYĂ SFSHNFQFXXJYXFWJHQFXXNĂ JINSY\TGWTFIHFYJLTWNJX â&#x20AC;˘

Financial assets at fair value

â&#x20AC;˘

Financial assets at amortised cost



<MJWJFXXJYXFWJRJFXZWJIFYKFNW[FQZJLFNSXFSIQTXXJXFWJJNYMJWWJHTLSNXJIJSYNWJQ^NSYMJXYFYJRJSYTKUWTĂ YFSIQTXX NJKFNW [FQZJYMWTZLMUWTĂ YTWQTXXTWWJHTLSNXJINSTYMJWHTRUWJMJSXN[JNSHTRJ NJKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJ



&Ă SFSHNFQFXXJYYMFYRJJYXYMJKTQQT\NSLY\THTSINYNTSXNXRJFXZWJIFYFRTWYNXJIHTXY SJYTKFS^\WNYJIT\SKTWNRUFNWRJSYZSQJXX YMJFXXJYNXIJXNLSFYJIFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXXZSIJWYMJKFNW[FQZJTUYNTS



â&#x20AC;˘

Business model test:9MJTGOJHYN[JTKYMJ(TRUFS^¸XGZXNSJXXRTIJQNXYTMTQIYMJĂ SFSHNFQFXXJYYTHTQQJHYYMJHTSYWFHYZFQ HFXMĂ&#x201A;T\X WFYMJWYMFSYTXJQQYMJNSXYWZRJSYUWNTWYTNYXHTSYWFHYZFQRFYZWNY^YTWJFQNXJNYXKFNW[FQZJHMFSLJX

â&#x20AC;˘

*HZOĂ&#x192;V^JOHYHJ[LYPZ[PJZ[LZ[!9MJHTSYWFHYZFQYJWRXTKYMJĂ SFSHNFQFXXJYLN[JWNXJTSXUJHNĂ JIIFYJXYTHFXMĂ&#x201A;T\XYMFYFWJ solely payments of principal and interest on the principal amount outstanding.

&Ă SFSHNFQFXXJYYMFYRJJYXYMJKTQQT\NSLY\THTSINYNTSXNXRJFXZWJIFYKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJZSQJXXYMJ FXXJYNXIJXNLSFYJIFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXXZSIJWYMJKFNW[FQZJTUYNTS â&#x20AC;˘

Business model test: 9MJ Ă SFSHNFQ FXXJY NX MJQI \NYMNS F GZXNSJXX RTIJQ \MTXJ TGOJHYN[J NX FHMNJ[JI G^ GTYM HTQQJHYNSL HTSYWFHYZFQHFXMĂ&#x201A;T\XFSIXJQQNSLĂ SFSHNFQFXXJYX

â&#x20AC;˘

*HZOĂ&#x192;V^JOHYHJ[LYPZ[PJZ[LZ[!9MJHTSYWFHYZFQYJWRXTKYMJĂ SFSHNFQFXXJYLN[JWNXJTSXUJHNĂ JIIFYJXYTHFXMĂ&#x201A;T\XYMFYFWJ solely payments of principal and interest on the principal amount outstanding.

Even if an instrument meets the two requirements to be measured at amortised cost or fair value through other comprehensive NSHTRJFà SFSHNFQFXXJYNXRJFXZWJIFYKFNW[FQZJYMWTZLMUWTà YTWQTXXNKITNSLXTJQNRNSFYJXTWXNLSNà HFSYQ^WJIZHJXFRJFXZWJRJSY TWWJHTLSNYNTSNSHTSXNXYJSH^ XTRJYNRJXWJKJWWJIYTFXFS¡FHHTZSYNSLRNXRFYHM¸YMFY\TZQITYMJW\NXJFWNXJKWTRRJFXZWNSLFXXJYX or liabilities or recognising the gains and losses on them on different bases.

FINANCIALS

95


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



&QQTYMJWĂ SFSHNFQFXXJYXFWJRJFXZWJIFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXX



&QQJVZNY^NS[JXYRJSYXFWJRJFXZWJIFYKFNW[FQZJNSYMJGFQFSHJXMJJY\NYM[FQZJHMFSLJXWJHTLSNXJINSYMJXYFYJRJSYTKUWTà YFSI QTXXJ]HJUYKTWYMTXJJVZNY^NS[JXYRJSYXKTW\MNHMYMJJSYNY^MFXJQJHYJIYTUWJXJSY[FQZJHMFSLJXNS¡TYMJWHTRUWJMJSXN[JNSHTRJ¸ If an equity investment is not held for trading, an irrevocable election is made at initial recognition to measure it at fair value through TYMJWHTRUWJMJSXN[JNSHTRJ\NYMTSQ^IN[NIJSINSHTRJWJHTLSNXJINSYMJXYFYJRJSYTKUWTà YFSIQTXX Derecognition





&Ă SFSHNFQFXXJY TW\MJWJFUUQNHFGQJFUFWYTKFĂ SFSHNFQFXXJYTWUFWYTKFLWTZUTKXNRNQFWĂ SFSHNFQFXXJYXNXUWNRFWNQ^IJWJHTLSNXJI (i.e. removed from the Companyâ&#x20AC;&#x2122;s balance sheet) when: Â&#x2030;

9MJWNLMYXYTWJHJN[JHFXMĂ&#x201A;T\XKWTRYMJFXXJYMF[JJ]UNWJITW

Â&#x2030;

9MJ(TRUFS^MFXYWFSXKJWWJINYXWNLMYXYTWJHJN[JHFXMĂ&#x201A;T\XKWTRYMJFXXJYTWMFXFXXZRJIFSTGQNLFYNTSYTUF^YMJWJHJN[JI HFXMĂ&#x201A;T\XNSKZQQ\NYMTZYRFYJWNFQIJQF^YTFYMNWIUFWY^ZSIJWF¡UFXXYMWTZLM¸FWWFSLJRJSYFSIJNYMJW (a)

The Company has transferred substantially all the risks and rewards of the asset, or

(b)

The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

<MJSYMJ(TRUFS^MFXYWFSXKJWWJINYXWNLMYXYTWJHJN[JHFXMĂ&#x201A;T\XKWTRFSFXXJYTWMFXJSYJWJINSYTFUFXXYMWTZLMFWWFSLJRJSY NYJ[FQZFYJXNKFSIYT\MFYJ]YJSYNYMFXWJYFNSJIYMJWNXPXFSIWJ\FWIXTKT\SJWXMNU<MJSNYMFXSJNYMJWYWFSXKJWWJISTWWJYFNSJI substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the YWFSXKJWWJIFXXJYYTYMJJ]YJSYTKYMJ(TRUFS^¸XHTSYNSZNSLNS[TQ[JRJSY.SYMFYHFXJYMJ(TRUFS^FQXTWJHTLSNXJXFSFXXTHNFYJI QNFGNQNY^9MJYWFSXKJWWJIFXXJYFSIYMJFXXTHNFYJIQNFGNQNY^FWJRJFXZWJITSFGFXNXYMFYWJĂ&#x201A;JHYXYMJWNLMYXFSITGQNLFYNTSXYMFYYMJ Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying FRTZSYTKYMJFXXJYFSIYMJRF]NRZRFRTZSYTKHTSXNIJWFYNTSYMFYYMJ(TRUFS^HTZQIGJWJVZNWJIYTWJUF^ Investment in associates, joint venture and subsidiaries The Company has accounted for its investment in subsidiaries, joint venture and associates, at cost. 0TWHPYTLU[VMĂ&#x201A;UHUJPHSHZZL[Z







96

9MJ(TRUFS^FXXJXXJXNRUFNWRJSYGFXJITSJ]UJHYJIHWJINYQTXXJX *(1RTIJQYTYMJKTQQT\NSL â&#x20AC;˘

Financial assets measured at amortised cost; and

â&#x20AC;˘

Financial assets measured at fair value through other comprehensive income (FVTOCI).

*]UJHYJIHWJINYQTXXJXFWJRJFXZWJIYMWTZLMFQTXXFQQT\FSHJFYFSFRTZSYJVZFQYT Â&#x2030;

9MJRTSYMJ]UJHYJIHWJINYQTXXJX J]UJHYJIHWJINYQTXXJXYMFYWJXZQYKWTRYMTXJIJKFZQYJ[JSYXTSYMJĂ SFSHNFQNSXYWZRJSYYMFY are possible within 12 months after the reporting date); or

Â&#x2030;

+ZQQQNKJYNRJJ]UJHYJIHWJINYQTXXJX J]UJHYJIHWJINYQTXXJXYMFYWJXZQYKWTRFQQUTXXNGQJIJKFZQYJ[JSYXT[JWYMJQNKJTKYMJĂ SFSHNFQ instrument).

9MJ(TRUFS^KTQQT\X¡XNRUQNĂ JIFUUWTFHM¸KTWWJHTLSNYNTSTKNRUFNWRJSYQTXXFQQT\FSHJTS â&#x20AC;˘

Trade receivables or contract revenue receivables; and

â&#x20AC;˘

All lease receivables



:SIJWYMJXNRUQNĂ JIFUUWTFHMYMJ(TRUFS^ITJXSTYYWFHPHMFSLJXNSHWJINYWNXP7FYMJWNYWJHTLSNXJXNRUFNWRJSYQTXXFQQT\FSHJ GFXJITSQNKJYNRJ*(1XFYJFHMWJUTWYNSLIFYJWNLMYKWTRNYXNSNYNFQWJHTLSNYNTS



9MJ(TRUFS^ZXJXFUWT[NXNTSRFYWN]YTIJYJWRNSJNRUFNWRJSYQTXXFQQT\FSHJTSYMJUTWYKTQNTTKYWFIJWJHJN[FGQJX9MJUWT[NXNTS RFYWN]NXGFXJITSNYXMNXYTWNHFQQ^TGXJW[JIIJKFZQYWFYJXT[JWYMJJ]UJHYJIQNKJTKYMJYWFIJWJHJN[FGQJFSINXFIOZXYJIKTWKTW\FWI looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.



+TWWJHTLSNYNTSTKNRUFNWRJSYQTXXTSTYMJWĂ SFSHNFQFXXJYXFSIWNXPJ]UTXZWJYMJ(TRUFS^IJYJWRNSJXYMFY\MJYMJWYMJWJMFXGJJS FXNLSNĂ HFSYNSHWJFXJNSYMJHWJINYWNXPXNSHJNSNYNFQWJHTLSNYNTS.KHWJINYWNXPMFXSTYNSHWJFXJIXNLSNĂ HFSYQ^RTSYM*(1NXZXJIYT UWT[NIJKTWNRUFNWRJSYQTXX-T\J[JWNKHWJINYWNXPMFXNSHWJFXJIXNLSNĂ HFSYQ^QNKJYNRJ*(1NXZXJI.KNSFXZGXJVZJSYUJWNTIHWJINY VZFQNY^TKYMJNSXYWZRJSYNRUWT[JXXZHMYMFYYMJWJNXSTQTSLJWFXNLSNĂ HFSYNSHWJFXJNSHWJINYWNXPXNSHJNSNYNFQWJHTLSNYNTSYMJSYMJ (TRUFS^WJ[JWYXYTWJHTLSNXNSLNRUFNWRJSYQTXXFQQT\FSHJGFXJITSRTSYM*(1



+TWFXXJXXNSLNSHWJFXJNSHWJINYWNXPFSINRUFNWRJSYQTXXYMJ(TRUFS^HTRGNSJXĂ SFSHNFQNSXYWZRJSYXTSYMJGFXNXTKXMFWJIHWJINY WNXPHMFWFHYJWNXYNHX\NYMYMJTGOJHYN[JTKKFHNQNYFYNSLFSFSFQ^XNXYMFYNXIJXNLSJIYTJSFGQJXNLSNĂ HFSYNSHWJFXJXNSHWJINYWNXPYTGJ NIJSYNĂ JITSFYNRJQ^GFXNX

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

(ii)

Financial liabilities: Initial recognition and measurement



&QQ Ă SFSHNFQ QNFGNQNYNJX FWJ WJHTLSNXJI NSNYNFQQ^ FY KFNW [FQZJ FSI NS YMJ HFXJ TK QTFSX FSI GTWWT\NSLX FSI UF^FGQJX SJY TK INWJHYQ^ attributable transaction costs.



9MJ(TRUFS^¸Xà SFSHNFQQNFGNQNYNJXNSHQZIJYWFIJFSITYMJWUF^FGQJXQTFSXFSIGTWWT\NSLXNSHQZINSLGFSPT[JWIWFKYXFSIIJWN[FYN[J à SFSHNFQNSXYWZRJSYX Subsequent measurement



9MJRJFXZWJRJSYTKĂ SFSHNFQQNFGNQNYNJXIJUJSIXTSYMJNWHQFXXNĂ HFYNTSFXIJXHWNGJIGJQT\ -PUHUJPHSSPHIPSP[PLZH[MHPY]HS\L[OYV\NOWYVĂ&#x201A;[VYSVZZ



+NSFSHNFQQNFGNQNYNJXFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXXNSHQZIJĂ SFSHNFQQNFGNQNYNJXMJQIKTWYWFINSLFSIĂ SFSHNFQQNFGNQNYNJXIJXNLSFYJIZUTS NSNYNFQWJHTLSNYNTSFXFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXX



+NSFSHNFQQNFGNQNYNJXFWJHQFXXNĂ JIFXMJQIKTWYWFINSLNKYMJ^FWJNSHZWWJIKTWYMJUZWUTXJTKWJUZWHMFXNSLNSYMJSJFWYJWR9MNXHFYJLTW^ FQXTNSHQZIJXIJWN[FYN[JĂ SFSHNFQNSXYWZRJSYXJSYJWJINSYTG^YMJHTRUFS^YMFYFWJSTYIJXNLSFYJIFXMJILNSLNSXYWZRJSYXNSMJILJ WJQFYNTSXMNUX FX IJĂ SJI G^ .SI &8  8JUFWFYJI JRGJIIJI IJWN[FYN[JX FWJ FQXT HQFXXNĂ JI FX MJQI KTW YWFINSL ZSQJXX YMJ^ FWJ designated as effective hedging instruments.

 

,FNSXTWQTXXJXTSQNFGNQNYNJXMJQIKTWYWFINSLFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXX +NSFSHNFQQNFGNQNYNJXIJXNLSFYJIZUTSNSNYNFQWJHTLSNYNTSFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXXFWJIJXNLSFYJIFYYMJNSNYNFQIFYJTKWJHTLSNYNTS FSITSQ^NKYMJHWNYJWNFNS.SI&8FWJXFYNXĂ JI Loans and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. ,FNSXFSIQTXXJXFWJWJHTLSNXJINSUWTĂ YTWQTXX\MJSYMJQNFGNQNYNJXFWJIJWJHTLSNXJIFX\JQQFXYMWTZLMYMJ*.7FRTWYNXFYNTSUWTHJXX Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part TKYMJ*.79MJ*.7FRTWYNXFYNTSNXNSHQZIJIFXĂ SFSHJHTXYXNSYMJXYFYJRJSYTKUWTĂ YFSIQTXX Financial guarantee contracts Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the MTQIJWKTWFQTXXNYNSHZWXGJHFZXJYMJXUJHNĂ JIIJGYTWKFNQXYTRFPJFUF^RJSY\MJSIZJNSFHHTWIFSHJ\NYMYMJYJWRXTKFIJGY instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss FQQT\FSHJIJYJWRNSJIFXUJWNRUFNWRJSYWJVZNWJRJSYXTK.SI&8FSIYMJFRTZSYWJHTLSNXJIQJXXHZRZQFYN[JFRTWYNXFYNTS Derecognition



&Ă SFSHNFQQNFGNQNY^NXIJWJHTLSNXJI\MJSYMJTGQNLFYNTSZSIJWYMJQNFGNQNY^NXINXHMFWLJITWHFSHJQQJITWJ]UNWJX<MJSFSJ]NXYNSL Ă SFSHNFQQNFGNQNY^NXWJUQFHJIG^FSTYMJWKWTRYMJXFRJQJSIJWTSXZGXYFSYNFQQ^INKKJWJSYYJWRXTWYMJYJWRXTKFSJ]NXYNSLQNFGNQNY^FWJ XZGXYFSYNFQQ^RTINĂ JIXZHMFSJ]HMFSLJTWRTINĂ HFYNTSNXYWJFYJIFXYMJIJWJHTLSNYNTSTKYMJTWNLNSFQQNFGNQNY^FSIYMJWJHTLSNYNTSTK FSJ\QNFGNQNY^9MJINKKJWJSHJNSYMJWJXUJHYN[JHFWW^NSLFRTZSYXNXWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXX

PPP 6MMZL[[PUNVMĂ&#x201A;UHUJPHSPUZ[Y\TLU[Z! 

+NSFSHNFQFXXJYXFSIĂ SFSHNFQQNFGNQNYNJXFWJTKKXJYFSIYMJSJYFRTZSYNXWJUTWYJINSYMJGFQFSHJXMJJYNKYMJWJNXFHZWWJSYQ^JSKTWHJFGQJ legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

P] +LYP]H[P]LĂ&#x201A;UHUJPHSPUZ[Y\TLU[ZHUKOLKNLHJJV\U[PUN! 

9MJ(TRUFS^JSYJWXNSYTIJWN[FYN[JHTSYWFHYXYTMJILJKTWJNLSHZWWJSH^UWNHJWNXPTSZSJ]JHZYJIĂ WRHTRRNYRJSYXFSIMNLMQ^ UWTGFGQJ KTWJHFXY YWFSXFHYNTSX 8ZHM IJWN[FYN[J Ă SFSHNFQ NSXYWZRJSYX FWJ NSNYNFQQ^ WJHTLSNXJI FY KFNW [FQZJ TS YMJ IFYJ TS \MNHM F IJWN[FYN[JHTSYWFHYNXJSYJWJINSYTFSIFWJXZGXJVZJSYQ^WJRJFXZWJIFYKFNW[FQZJ)JWN[FYN[JXFWJHFWWNJIFXĂ SFSHNFQFXXJYX\MJSYMJ KFNW[FQZJNXUTXNYN[JFSIFXĂ SFSHNFQQNFGNQNYNJX\MJSYMJKFNW[FQZJNXSJLFYN[J



&S^LFNSXTWQTXXJXFWNXNSLKWTRHMFSLJXNSYMJKFNW[FQZJTKIJWN[FYN[JXFWJYFPJSINWJHYQ^YTXYFYJRJSYTKUWTĂ YFSIQTXXJ]HJUYKTWYMJ JKKJHYN[JUTWYNTSTKHFXMĂ&#x201A;T\MJILJX\MNHMNXWJHTLSNXJINSTYMJWHTRUWJMJSXN[JNSHTRJFSIUWJXJSYJIFXFXJUFWFYJHTRUTSJSY TKJVZNY^\MNHMNXQFYJWWJHQFXXNĂ JIYTXYFYJRJSYTKUWTĂ YFSIQTXX\MJSYMJMJILJNYJRFKKJHYXUWTĂ YTWQTXX

FINANCIALS

97


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.22 Business combinations under common control: Common control business combinations include transactions, such as transfer of subsidiaries or businesses, between entities within a Company. Business combinations involving entities or businesses under common control are accounted for using the pooling of interests method. :SIJW UTTQNSL TK NSYJWJXY RJYMTI YMJ FXXJYX FSI QNFGNQNYNJX TK YMJ HTRGNSNSL JSYNYNJX FWJ WJÂJHYJI FY YMJNW HFWW^NSL FRTZSYX YMJ TSQ^ adjustments that are made are to harmonise accounting policies. 

9MJÁSFSHNFQNSKTWRFYNTSNSYMJÁSFSHNFQXYFYJRJSYXNSWJXUJHYTKUWNTWUJWNTIXFWJWJXYFYJIFXNKYMJGZXNSJXXHTRGNSFYNTSMFITHHZWWJI KWTR YMJ GJLNSSNSL TK YMJ UWJHJINSL UJWNTI NS YMJ ÁSFSHNFQ XYFYJRJSYX NWWJXUJHYN[J TK YMJ FHYZFQ IFYJ TK YMJ HTRGNSFYNTS -T\J[JW NK business combination had occurred after that date, the prior period information is restated only from that date. The difference, if any, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and presented separately from other capital reserves with disclosure of its nature and purpose in the notes.

98

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

 9MJUWJUFWFYNTSTKYMJ(TRUFS^¸XĂ SFSHNFQXYFYJRJSYXWJVZNWJXRFSFLJRJSYYTRFPJOZILJRJSYXJXYNRFYJXFSIFXXZRUYNTSXYMFYFKKJHYYMJ WJUTWYJIFRTZSYXTKWJ[JSZJXJ]UJSXJXFXXJYXFSIQNFGNQNYNJXFSIYMJFHHTRUFS^NSLINXHQTXZWJXFSIYMJINXHQTXZWJTKHTSYNSLJSYQNFGNQNYNJX Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Judgements Service concession arrangements:  2FSFLJRJSYMFXFXXJXXJIFUUQNHFGNQNY^TK&UUJSIN]&TK.SI&88JW[NHJ(TSHJXXNTS&WWFSLJRJSYXYTUT\JWINXYWNGZYNTSFWWFSLJRJSYX JSYJWJI NSYT G^ YMJ (TRUFS^ .S FXXJXXNSL YMJ FUUQNHFGNQNY^ RFSFLJRJSY MFX J]JWHNXJI XNLSNĂ HFSY OZILRJSY NS WJQFYNTS YT YMJ ZSIJWQ^NSL ownership of the assets, terms of the power distribution arrangements entered with the grantor, ability to determine prices, fair value of construction service, assessment of right to guaranteed cash etc. Based on detailed evaluation, management has determined that this arrangement meet the criteria for recognition as service concession arrangements. Discontinued operations: Consumer products segment In pursuance to the demerger of the Consumer products business unit, the Board considered the consumer products business unit to meet the HWNYJWNFYTGJHQFXXNĂ JIFXMJQIKTWINXYWNGZYNTSFYYMFYIFYJKTWYMJKTQQT\NSLWJFXTSX Â&#x2030;

9MJFHYNTSXYTHTRUQJYJYMJINXYWNGZYNTS\JWJNSNYNFYJIFSIJ]UJHYJIYTGJHTRUQJYJI\NYMNSTSJ^JFWKWTRYMJIFYJTKHTRRNYRJSYYT IJRJWLJWYMJGZXNSJXXNJYM+JGWZFW^

â&#x20AC;˘

Consumer product represents a separate major line of business of operations,

â&#x20AC;˘

The shareholders approved the distribution in August 2015, and

Â&#x2030;

9MJ8HMJRJTKIJRJWLJW\FXFUUWT[JIG^YMJ-TSTZWFGQJ-NLMHTZWYOZINHFYZWJFY'TRGF^YM3T[JRGJW YMJ&UUTNSYJIIFYJ

Power distribution business In pursuant to the certain unresolved disputes arising out of the Distribution Franchisee Agreement (DFA) of the Company with Maharashtra 8YFYJ*QJHYWNHNY^)NXYWNGZYNTS(TRUFS^1NRNYJI 28*)(1FY/FQLTFSNS2FMFWFXMYWF28*)(1MFXJ]JWHNXJINYXXYJUNSWNLMYXFSIYFPJST[JW YMJ)NXYWNGZYNTS+WFSHMNXJJNS/FQLTFSKWTRYMJ(TRUFS^\NYMJKKJHYKWTRYM&ZLZXY9MJTUJWFYNTSX\JWJYJWRNSFYJI\NYMNRRJINFYJ JKKJHYFSIYMJĂ SFQHQFNRXJYYQJRJSYGJY\JJSYMJ(TRUFS^FSI28*)(1NXNSUWTLWJXX9MJ(TRUFS^MF[JHQFXXNĂ JIYMJ5T\JWINXYWNGZYNTS segment as held for disposal from 12th August, 2015 for the following reasons: â&#x20AC;˘

Power distribution segment represents a separate major line of business of operations

â&#x20AC;˘

The operations were abandoned with immediate effect from 12th August, 2015 and hence the carrying amount will not be recovered principally through continuing use.

Automation business In pursuance to the discontinuance of the Automation business unit, the Board considered the Automation business unit to meet the criteria to GJHQFXXNĂ JIFXMJQIKTWINXYWNGZYNTSFYYMFYIFYJKTWYMJKTQQT\NSLWJFXTSX â&#x20AC;˘

The actions to complete the distribution were initiated and the business was sold during the year ended 31st March, 2017,

â&#x20AC;˘

Automation business represents a separate major line of business of operations.

Lease of equipment not in legal form of lease  8NLSNĂ HFSYOZILRJSYNXWJVZNWJIYTFUUQ^QJFXJFHHTZSYNSLWZQJXZSIJW&UUJSIN](YT.SI&8IJYJWRNSNSL\MJYMJWFS&WWFSLJRJSYHTSYFNSX F1JFXJ.SFXXJXXNSLYMJFUUQNHFGNQNY^YTFWWFSLJRJSYXJSYJWJINSYTG^YMJ(TRUFS^RFSFLJRJSYMFXJ]JWHNXJIOZILRJSYYTJ[FQZFYJYMJWNLMY YTZXJYMJZSIJWQ^NSLFXXJYXXZGXYFSHJTKYMJYWFSXFHYNTSNSHQZINSLQJLFQQ^JSKTWHJIFWWFSLJRJSYXFSITYMJWXNLSNĂ HFSYYJWRXFSIHTSINYNTSX TKYMJFWWFSLJRJSYYTHTSHQZIJ\MJYMJWYMJFWWFSLJRJSYXRJJYYMJHWNYJWNFZSIJW&UUJSIN](YT.SI&8 Estimates and assumptions  9MJPJ^FXXZRUYNTSXHTSHJWSNSLYMJKZYZWJFSITYMJWPJ^XTZWHJXTKJXYNRFYNTSZSHJWYFNSY^FYYMJWJUTWYNSLIFYJYMFYMF[JFXNLSNĂ HFSYWNXPTK HFZXNSLFRFYJWNFQFIOZXYRJSYYTYMJHFWW^NSLFRTZSYXTKFXXJYXFSIQNFGNQNYNJX\NYMNSYMJSJ]YĂ SFSHNFQ^JFWFWJIJXHWNGJIGJQT\9MJ(TRUFS^ GFXJI NYX FXXZRUYNTSX FSI JXYNRFYJX TS UFWFRJYJWX F[FNQFGQJ \MJS YMJ Ă SFSHNFQ XYFYJRJSYX \JWJ UWJUFWJI *]NXYNSL HNWHZRXYFSHJX FSI assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of YMJ(TRUFS^8ZHMHMFSLJXFWJWJĂ&#x201A;JHYJINSYMJFXXZRUYNTSX\MJSYMJ^THHZW

FINANCIALS

99


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Contd.)

 0TWHPYTLU[VMUVUÂUHUJPHSHZZL[Z  9MJ(TRUFS^FXXJXXJXFYJFHMWJUTWYNSLIFYJ\MJYMJWYMJWJNXFSNSINHFYNTSYMFYFSFXXJYRF^GJNRUFNWJI.KFS^NSINHFYNTSJ]NXYXTW\MJS annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset ITJXSTYLJSJWFYJHFXMNSÂT\XYMFYFWJQFWLJQ^NSIJUJSIJSYTKYMTXJKWTRTYMJWFXXJYXTWLWTZUXTKFXXJYX<MJWJYMJHFWW^NSLFRTZSYTKFS FXXJYTW(,:J]HJJIXNYXWJHT[JWFGQJFRTZSYYMJFXXJYNXHTSXNIJWJINRUFNWJIFSINX\WNYYJSIT\SYTNYXWJHT[JWFGQJFRTZSY  .SFXXJXXNSL[FQZJNSZXJYMJJXYNRFYJIKZYZWJHFXMÂT\XFWJINXHTZSYJIYTYMJNWUWJXJSY[FQZJZXNSLFUWJYF]INXHTZSYWFYJYMFYWJÂJHYXHZWWJSY RFWPJYFXXJXXRJSYXTKYMJYNRJ[FQZJTKRTSJ^FSIYMJWNXPXXUJHNÁHYTYMJFXXJY.SIJYJWRNSNSLKFNW[FQZJQJXXHTXYXTKINXUTXFQWJHJSYRFWPJY YWFSXFHYNTSXFWJYFPJSNSYTFHHTZSY.KSTXZHMYWFSXFHYNTSXHFSGJNIJSYNÁJIFSFUUWTUWNFYJ[FQZFYNTSRTIJQNXZXJI9MJXJHFQHZQFYNTSXFWJ corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators. +LÂULKILULÂ[WSHUZ  9MJHTXYTKYMJIJÁSJIGJSJÁYUQFSFSITYMJWUTXYJRUQT^RJSYGJSJÁYXFSIYMJUWJXJSY[FQZJTKXZHMTGQNLFYNTSFWJIJYJWRNSJIZXNSLFHYZFWNFQ valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include YMJIJYJWRNSFYNTSTKYMJINXHTZSYWFYJKZYZWJXFQFW^NSHWJFXJXRTWYFQNY^WFYJXFSIFYYWNYNTSWFYJ)ZJYTYMJHTRUQJ]NYNJXNS[TQ[JINSYMJ[FQZFYNTS FSINYXQTSLYJWRSFYZWJFIJÁSJIGJSJÁYTGQNLFYNTSNXMNLMQ^XJSXNYN[JYTHMFSLJXNSYMJXJFXXZRUYNTSX&QQFXXZRUYNTSXFWJWJ[NJ\JIFYJFHM reporting date. -HPY]HS\LTLHZ\YLTLU[VMÂUHUJPHSPUZ[Y\TLU[Z  <MJSYMJKFNW[FQZJXTKÁSFSHNFQFXXJYXFSIÁSFSHNFQQNFGNQNYNJXWJHTWIJINSYMJGFQFSHJXMJJYHFSSTYGJRJFXZWJIGFXJITSVZTYJIUWNHJXNS active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair [FQZJX/ZILJRJSYXNSHQZIJHTSXNIJWFYNTSXTKNSUZYXXZHMFXQNVZNINY^WNXPHWJINYWNXPFSI[TQFYNQNY^(MFSLJXNSFXXZRUYNTSXFGTZYYMJXJKFHYTWX HTZQIFKKJHYYMJWJUTWYJIKFNW[FQZJTKÁSFSHNFQNSXYWZRJSYX Development costs The Company capitalises development costs for a project in accordance with the accounting policy. Initial capitalisation of costs is based on RFSFLJRJSY¸XOZILJRJSYYMFYYJHMSTQTLNHFQFSIJHTSTRNHKJFXNGNQNY^NXHTSÁWRJIZXZFQQ^\MJSFUWTIZHYIJ[JQTURJSYUWTOJHYMFXWJFHMJIF IJÁSJIRNQJXYTSJFHHTWINSLYTFSJXYFGQNXMJIUWTOJHYRFSFLJRJSYRTIJQ.SIJYJWRNSNSLYMJFRTZSYXYTGJHFUNYFQNXJIRFSFLJRJSYRFPJX FXXZRUYNTSXWJLFWINSLYMJJ]UJHYJIKZYZWJHFXMLJSJWFYNTSTKYMJUWTOJHYINXHTZSYWFYJXYTGJFUUQNJIFSIYMJJ]UJHYJIUJWNTITKGJSJÁYX 0TWHPYTLU[VMÂUHUJPHSHZZL[Z  9MJNRUFNWRJSYUWT[NXNTSXKTWÁSFSHNFQFXXJYXFWJGFXJITSFXXZRUYNTSXFGTZYWNXPTKIJKFZQYFSIJ]UJHYJIQTXXWFYJX9MJ(TRUFS^ZXJX OZILJRJSYNSRFPNSLYMJXJFXXZRUYNTSXFSIXJQJHYNSLYMJNSUZYXYTYMJNRUFNWRJSYHFQHZQFYNTSGFXJITS(TRUFS^¸XUFXYMNXYTW^J]NXYNSL market conditions as well as forward looking estimates at the end of each reporting period.

100

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


FINANCIALS

101

5.

209.03

192.63

0.16 3.60

-

Disposals / transfers

As at 31-03-2016

As at 31-03-2017

 192.63

As at 31-03-2016

As at 31-03-2017

Net book value

7.16

-

Transferred to discontinued operation

201.87

205.43

-

Disposals / transfers

3.56

-

Depreciation charge for the year

2.40

-

Depreciation charge for the year

1.36

-

As at 1-04-2015

Accumulated depreciation:

As at 31-03-2017

-

-

Transferred to discontinued operation

-

-

209.03

192.63

-





Additions

56.60

244.17

-

270.66

1JFXJMTQI land

Disposals / transfers

As at 31-03-2016

Disposals / transfers

Additions

As at 1-04-2015

Cost:

Freehold land

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

PROPERTY, PLANT AND EQUIPMENT

NOTES

-

553.66

577.05

261.23



-



-



61.61

566.17

11.36

 -





23.26

-

2.40

7.20

-

-

9.60

15.12

40.27



827.40

5.06



-

14.39

-

-



Plant and machinery leasehold

541.33

39.17

5.25

23.31

21.11

615.27

-

20.03 

1.13

825.32



616.22



22.30

 



636.36

Buildings

Plant and machinery

13.02



31.23

1.52





36.16

6.03

7.74

33.92

0.37



2.40

37.47

4.22

3.00

5.35





39.95

4.34

5.27

6.01

-

1.41



6.33

1.24

1.12

6.45

10.35

-



37.71

44.25

3.75





11.60

2.22



12.53

Vehicles



1.56

 

45.21

5.73

1.72



Office equipments

55.30







Furniture and fittings

1232.78



706.10

3.07

35.06

70.57

673.66

31.34

76.30



1938.88



45.62

24.44

1969.70

243.40



2120.71

Total

8.23

2.00

8.23

-

1.76



2.00

1.73

1.06

2.67

Capital work-inprogress

` crore


` crore

NOTES 6.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

INVESTMENT PROPERTY Cost: 

As at 1-04-2015 Additions



Disposals / transfers As at 31-03-2016

-

Additions

-

Disposals / transfers

-

As at 31-03-2017

-

Accumulated depreciation: As at 1-04-2015

1.52

Depreciation charge for the year

0.03

Disposals / transfers

1.55

As at 31-03-2016

-

Depreciation charge for the year

-

Disposals / transfers

-

As at 31-03-2017

-

Net book value As at 31-03-2016

-

As at 31-03-2017

-

Fair value As at 31-03-2016

3&

As at 31-03-2017

NA

Rental income derived from investment properties

102

2016-17

2015-16

-



)NWJHYTUJWFYNSLJ]UJSXJX NSHQZINSLWJUFNWXFSIRFNSYJSFSHJLJSJWFYNSLWJSYFQNSHTRJ

-

-

7YVÃ&#x201A;[HYPZPUNMYVTPU]LZ[TLU[WYVWLY[PLZ

-



CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

7. OTHER INTANGIBLE ASSETS Computer software

Technical know-how

Commercial rights

Research and development

Concession rights

Intangible assets under development

Total

Cost: As at 1-04-2015 Additions



24.27

43.52







30.05

7.00

-

-



-



15.03 7.13

Disposals / transfers

-

-

-

3.16

-

3.16

Transferred to discontinued operations

-

-

-

-





-

55.50

24.27

43.52

53.31

-

176.60

37.95

0.70

-

-

20.03

-

20.73

10.54

-

-

-

-

-

-

20.03

As at 31-03-2016 Additions Disposals / transfers

0.53

14.00

12.43



-

27.04

0.45

55.67

10.27

31.09

73.26

-

170.29

28.01

26.13





23.42



101.53









-

31.63

Disposals / transfers

-

-

-

3.16

-

3.16

Transferred to discontinued operations

-

-

-

-





Transferred to discontinued operation As at 31-03-2017 Accumulated amortisation: As at 1-04-2015 Amortisation charge for the year

34.11

20.51

38.71

32.74

-

126.07

Amortisation charge for the year

7.23

-

1.11



-

21.17

Transferred to discontinued operation



10.24

12.43

0.02

-



40.85

10.27

27.39

45.55

-

124.06

As at 31-03-2016



3.76



20.57

-

50.53



As at 31-03-2017

14.82

-

3.70

27.71

-

46.23

28.01

As at 31-03-2017

As at 31-03-2016

As at 31-03-2016

As at 31-03-2017 Net book value

8.

NON-CURRENT FINANCIAL ASSETS - INVESTMENTS Quoted investments Investment in Government or trust securities

0.44

0.44

0.44

0.44

251.37

251.37

151.80



0.01

0.01

8.05



27.83

23.20

Unquoted investments Investments in equity instruments Subsidiary companies Investments in equity instruments Carried at fair value through other comprehensive income (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX Investments in debentures or bonds (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX Other non-current investments (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX Investment in joint venture Carried at cost

1.15

-

440.21



440.65



Notes: Quoted investments Book value

0.44

0.44

Market value

0.44

0.44

440.21



Unquoted investments Book value

FINANCIALS

103


` crore

NOTES

8.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

Face value per unit in ` unless otherwise specified

3TTK shares / units

100

39000

As at 31-03-2017

As at 31-03-2017

As at 31-03-2016

NON-CURRENT FINANCIAL ASSETS - INVESTMENTS (Contd.) Details of investments: A)

Quoted investments Government and trust securities 1 

Central Government Securities  ,4.TK` 100 each

Total (A) B)

0.44

0.44

0.44

0.44

13.03

Unquoted investments Investments in equity instruments Investment in subsidiary companies Fully paid equity shares  (,55.&IMJXN[J5WTIZHYX1NRNYJI

10

3175520

13.03

 (,5T\JW8TQZYNTSX1NRNYJI

10

50000

0.05

0.05

USD 1

44121460

238.29



251.37

251.37

151.80



151.80



 (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI Carried at fair value Other comprehensive income  &[FSYMF5T\JW .SKWFXYWZHYZWJ1NRNYJI

10

213300228

;OYV\NOWYVĂ&#x201A;[VYSVZZ  )NSJYYJ*]HQZXN[J(QZG5WN[FYJ1NRNYJI

100

500

0.01

0.01

 7FINFSY*QJHYWTSNHX1NRNYJI

100

190000

0.00

0.00

0.01

0.01

Investments in debentures or bonds *HYYPLKH[MHPY]HS\L[OYV\NOWYVĂ&#x201A;[HUKSVZZ  

&[FSYMF-TQINSLX1NRNYJI 4UYNTSFQQ^(TS[JWYNGQJ?JWT(TZUTS3TSRFWPJYFGQJYWFSXKJWFGQJ)JGJSYZWJX

100

800000

8.00



)NSJYYJ*]HQZXN[J(QZG5WN[FYJ1NRNYJI

100

5000

0.05

0.05

8.05



 :SXJHZWJI.WWJIJJRFGQJ3TSHTS[JWYNGQJ)JGJSYZWJXTK` 100 each) Other non-current investments UTI - Balanced Fund - Dividend Plan - Payout 5T\JW*VZNURJSY1NRNYJI *]NIJ1NKJ9WFINYNTSFQ*RUQT^JJ'JSJĂ YX5QFS8HMJRJ

55909

0.12

20600

0.00

0.12 0.00 14.00

1

15.81

4811334

10.40



870887

1.50

1.00

27.83

23.20

1.15 1.15

-

Total (B)

440.21



Total (A+B)

440.65



-)+(1NKJ8JHZWJ2FSFLJI+ZSI .SINF+NWXY*RUQT^JJ'JSJĂ Y5QFS*VZNY^&I[FSYFLJ+ZSI Investment in joint venture PT Crompton Prima Switchgear Indonesia

104

10 USD 10

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

9.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

6.64



6.64



As at 31-03-2017

As at 31-03-2016

NON-CURRENT FINANCIAL ASSETS - LOANS Unsecured, considered good, unless otherwise stated Deposits

10. NON-CURRENT FINANCIAL ASSETS - OTHERS Financial guarantee fees receivable

46.89

44.57

46.89

44.57

As at 31-03-2017

As at 31-03-2016

11. NON-CURRENT ASSETS - OTHERS Unsecured, considered good, unless otherwise stated Capital advances Others

As at 31-03-2017 12.

3.18

0.62

-

0.02

3.18

0.64

As at 31-03-2016

INVENTORIES Raw materials Add: Goods-in-transit



330.28

6.13

5.50 335.78



Work-in-progress - manufacturing

201.31

202.40

Finished goods - manufacturing

121.63

43.27

88.83

0.51

3.18



0.03 750.76

 407.17

Stock-in-trade Stores, spares and packing materials 1TTXJYTTQX

As at 31-03-2017

As at 31-03-2016

0.98



13. CURRENT FINANCIAL ASSETS - INVESTMENTS Quoted investments Investments in equity instruments (FWWNJIFYKFNW[FQZJYMWTZLMUWTÁYFSIQTXX Investments in mutual funds (FWWNJIFYKFNW[FQZJYMWTZLMUWTÁYFSIQTXX

4.24

-

5.22



Note: Quoted investments Book value

5.22



Market value

5.22



FINANCIALS

105


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

13. CURRENT FINANCIAL ASSETS - INVESTMENTS (Contd.) Face value per unit in ` unless otherwise specified

3TTK shares / units As at 31-03-2017

As at 31-03-2017

As at 31-03-2016

0.01

Details of investments: Investments in equity instruments 3NHHT(TWUTWFYNTS1NRNYJI .)'.'FSP1NRNYJI /(9*QJHYWTSNHX1NRNYJI

2

330390

0.02

10

127720

0.96



1

250000

0.98

0.01 

132319.51

4.24

-

Investments in mutual funds Birla Sunlife Saving Fund Growth Direct Plan

As at 31-03-2017

4.24

-

5.22



As at 31-03-2016

14. TRADE RECEIVABLES Unsecured Debts overdue for six months Considered good Considered doubtful Less: Allowance for doubtful debts

415.26



91.85



507.11

 

91.85 415.26



1065.11

1252.43

1480.37



Other debts Considered good

As at 31-03-2017 15.

As at 31-03-2016

CASH AND CASH EQUIVALENTS Cash and cash equivalents: Balances with banks: On current accounts

399.52

335.35

On deposit accounts (Refer note below)

154.90

175.00

554.42

510.35

0.06

0.06

Cash on hand

554.48

510.41

554.48

510.41

Note: Deposits of `HWTWJ 5WJ[NTZX^JFW`175.00 crore) are held as margin money or security against borrowings, guarantees, other commitments and under lien with banks.

106

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

1.27

1.62

1.27

1.62

16. BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS Other balance: Earmarked balance with banks for: Unpaid dividends

There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31st March, 2017 and 31st March, 2016.

As at 31-03-2017

As at 31-03-2016

17. CURRENT FINANCIAL ASSETS - LOANS Unsecured, considered good, unless otherwise stated Loans to Subsidiaries

1022.11

1437.86

Security deposits: Considered good Considered doubtful

Less: Allowance for bad and doubtful advances



29.11 0.05

0.05

29.16

 0.05

0.05 29.11



1466.97

1051.05

As at 31-03-2017

As at 31-03-2016

149.03

230.60

Financial guarantee fees receivable

30.99



Derivative instruments

16.29

6.40

18. CURRENT FINANCIAL ASSETS - OTHERS Bank Deposits

4YMJWĂ SFSHNFQWJHJN[FGQJX

7.96

1.37

204.27



Note: Deposits of `HWTWJ 5WJ[NTZX^JFW` 230.60 crore) are held as margin money or security against borrowings, guarantees, other commitments and under lien with banks.

As at 31-03-2017

As at 31-03-2016

Advance to suppliers

508.44

155.34

Advance to other related parties

115.26



22.73



Due from customer (constructions and project related activity)

17.93

34.30

Insurance receivables

14.04



224.29

205.12

902.69



19. OTHER CURRENT ASSETS

5WJUFNIJ]UJSXJX

Statutory and other receivables

FINANCIALS

107


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

407.60

407.60

125.35

125.35

125.35

125.35

20. SHARE CAPITAL Authorised: *VZNY^8MFWJXTK` 2 each 5WJ[NTZX^JFW*VZNY^8MFWJXTK` 2 each) Issued: *VZNY^8MFWJXTK` 2 each 5WJ[NTZX^JFW*VZNY^8MFWJXTK` 2 each) Subscribed and paid-up: 62,67,46,142 Equity Shares of ` 2 each (Previous year 62,67,46,142 Equity Shares of ` 2 each) Forfeited shares: Amount paid-up on 42,300 Equity Shares of ` 2 each (Amount paid-up ` 32,175)

0.00

0.00

125.35

125.35

Notes: (a) Reconciliation of the number of the shares outstanding at the beginning and at the end of the year: Authorised share capital

As at 31-03-2017

As at 31-03-2016

No. of Shares

` crore

3TTK8MFWJX

` crore

Balance at the beginning of the year

2038000000

407.60



407.60

Balance at the end of the year

2038000000

407.60



407.60

Issued share capital

As at 31-03-2017

As at 31-03-2016

No. of Shares

` crore

3TTK8MFWJX

` crore

Balance at the beginning of the year

626788442

125.35



125.35

Balance at the end of the year

626788442

125.35



125.35

Subscribed and paid-up

As at 31-03-2017

As at 31-03-2016

No. of Shares

` crore

3TTK8MFWJX

` crore

Balance at the beginning of the year

626746142

125.35

626746142

125.35

Balance at the end of the year

626746142

125.35

626746142

125.35

The Company has not issued any equity shares during the current and in the previous year. (b) Terms / rights attached to equity shares: The Company has one class of share capital, i.e., equity shares having face value of ` 2 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. (c) Details of shareholders holding more than 5 % shares in the Company: As at 31-03-2017 % No. of Shares

3TTK8MFWJX 

1

&[FSYMF-TQINSLX1NRNYJI

34.37

215442496

34.37

2

7JQNFSHJ(FUNYFQ9WZXYJJ(T1YI&H7JQNFSHJ*VZNY^4UUTWYZSNYNJX+ZSI

9.21

57717660

7.43



3

-)+(9WZXYJJ(TRUFS^1NRNYJI-)+(*VZNY^+ZSI

9.22

57809500





4

1NKJ.SXZWFSHJ(TWUTWFYNTSTK.SINF

5.24

32820195

5.24



(d) There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestment.

108

As at 31-03-2016

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

20. SHARE CAPITAL (Contd.) L (NNYLNH[LU\TILYVMIVU\ZZOHYLZPZZ\LKK\YPUN[OLWLYPVKVMĂ&#x201A;]L`LHYZPTTLKPH[LS`WYLJLKPUN[OLYLWVY[PUNKH[L!

Shares issued as fully paid-up bonus shares

As at 31-03-2017

As at 31-03-2016

No. of Shares

3TTK8MFWJX

-

-

As at 31-03-2017

As at 31-03-2016

No. of Shares

3TTK8MFWJX

14745394



M (NNYLNH[LU\TILYVMZOHYLZIV\NO[IHJRK\YPUN[OLWLYPVKVMĂ&#x201A;]L`LHYZPTTLKPH[LS`WYLJLKPUN[OLYLWVY[PUNKH[L!

Shares bought back (g) Aggregate number of shares issued as GDRs: As at 31-03-2017 % No. of Shares 9MJ'FSPTK3J\>TWP

0.14

882329

As at 31-03-2016

3TTK8MFWJX

0.14



(h) Dividend paid and proposed: 

(i)

3TIN[NIJSIXMF[JGJJSUWTUTXJIIJHQFWJITWUFNIIZWNSLYMJĂ SFSHNFQ^JFW 5WJ[NTZX^JFW`3NQTWFKYJWYMJ+NSFSHNFQ^JFWGZYGJKTWJ YMJĂ SFSHNFQXYFYJRJSYX\JWJFUUWT[JIKTWNXXZJ   Nature and purpose of reserves: (1) Capital redemption reserve: Capital redemption reserve was created on buy back of shares. The Company may issue fully paid-up bonus shares to its members out of the capital redemption reserve account. (2) Security premium account: Security premium account is created when shares are issued at premium. The Company may issue fully paid-up bonus shares to its members out of the security premium reserve account, and Company can use this reserve for buy-back of shares. (3) Capital reserve: 

9MJ(TRUFS^MFIUFNIHJWYFNSIJKJWWJIXFQJXYF]QNFGNQNYNJXNSFHHTWIFSHJ\NYMYMJXHMJRJKTWRZQFYJIG^YMJ8YFYJ,T[JWSRJSYTK2FMFWFXMYWFKTW such optional prepayments. The resultant surplus of `HWTWJXWJUWJXJSYNSLYMJJ]HJXXTKYMJWJHTWIJIQNFGNQNY^T[JWYMJFRTZSYUFNI\FXHWJINYJI to Capital reserve.



)ZWNSLYMJĂ SFSHNFQ^JFWJSIJIXY2FWHMYMJHFUNYFQWJXJW[JTK` 652.53 crores is recognised due to demerger of consumer products segment UZWXZFSYYTYMJYWFSXKJWTKFQQFXXJYXFSIQNFGNQNYNJXYTYMJWJXZQYNSLHTRUFS^NJ(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI 7JKJWSTYJ

FINANCIALS

109


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

390.41

-

21. NON-CURRENT FINANCIAL LIABILITIES - BORROWINGS Secured loans Term loans From banks {Refer note (a) below} Unsecured loans From banks {Refer note (b) below}

113.19

-

-

4.15

503.60

4.15

Finance lease obligation

Notes: Security created to the extend of : (a) Secured term loans from banks: The term loan of ` 412.71 crore (as at 31-03-2016 `3NQFYFSNSYJWJXYWFYJTK^JFW'FSP¸X2(17 WJXJYTSYMJXYIF^TKYMJRTSYMKFQQNSLFKYJWY\JQ[JHFQJSIFW RTSYMXKWTRYMJIFYJTKWJQJ[FSYIWF\IT\SFSIJ[JW^RTSYMXYMJWJFKYJWUQZXFXUWJFITK UFUF^FGQJRTSYMQ^9MJQTFSNXWJUF^FGQJ\NYMNSà [J^JFWX KWTRYMJIFYJTKINXGZWXJRJSYNJWI&ZLZXYNSXYWZHYZWJIVZFWYJWQ^UF^RJSYX\NYMFRTWFYTWNZRTKRTSYMX9MJQTFSNXXJHZWJIG^à WXYJ]HQZXN[J HMFWLJTSUQFSYFSIRFHMNSJW^FSIRT[JFGQJà ]JIFXXJYX (ZWWJSYRFYZWNY^UJWYFNSNSLYTYMJXFNIQTFSNX` 22.30 crore, Refer note 27). (b) Unsecured term loans from banks: The term loan of ` 210.63 crore (as at 31-03-2016 `3NQFYFSNSYJWJXYWFYJTK UFQNSPJIYT'FSP¸X^JFW2(17 +QTFYNSLWFYJ9MJQTFSNXWJUF^FGQJ\NYMNS ^JFWXKWTRYMJIFYJTKINXGZWXJRJSYNJYM/ZQ^NSJVZFQVZFWYJWQ^NSXYFQQRJSYX\NYMà WXYNSXYFQQRJSYXYFWYNSLFKYJWRTSYMXKWTRYMJIFYJTK disbursement (Current maturity pertaining to the said loan is `HWTWJ7JKJWSTYJ Finance lease commitments The minimum lease rentals as at 31st March, 2017 and the present value as at 31st March, 2017 of minimum lease payment in respect of assets acquired under à SFSHJQJFXJXFWJFXKTQQT\X As at 31-03-2017 Minimum payments



As at 31-03-2016

Present value of payments

Minimum payments

Present value of payments

Within one year

-

-



3.72

&KYJWTSJ^JFWGZYSTYRTWJYMFSĂ [J^JFWX

-

-



4.15

2TWJYMFSĂ [J^JFWX

-

-

-

-

Total minimum lease payments

-

-





Less:FRTZSYXWJUWJXJSYNSLĂ SFSHJHMFWLJX

-

-



-

Present value of minimum lease payments

-

-





9MJ(TRUFS^MFXIZWNSLYMJĂ SFSHNFQ^JFWRFIJWJFXXJXXRJSYTKFSFWWFSLJRJSYFKYJWNYXNSHJUYNTS\MNHM\FXJFWQNJWFXXJXXJIFXHTSYFNSNSLFĂ SFSHJ QJFXJ9MJWJFXXJXXRJSY\FXSJHJXXNYFYJITSFHHTZSYTKHMFSLJNSYMJHTSYWFHYZFQYJWRX \MNHMINISTYWJQFYJTSQ^YTWJSJ\FQTWJ]YJSXNTSTKYMJFWWFSLJRJSY9MJ arrangement is now reassessed as not containing a lease and thus, lease accounting ceased to apply from the date when the change in circumstances giving rise to the reassessment occurred. The difference between the carrying amount of the leased assets and the lease liability, amounting to `HWTWJMFXGJJSWJHTLSNXJINSYMJ8YFYJRJSYTKUWTĂ YFSI loss. As at 31-03-2017

As at 31-03-2016

22. NON-CURRENT OTHER FINANCIAL LIABILITIES Deposits payable

1.10

1.21

1.10

1.21

As at 31-03-2017

As at 31-03-2016

5WT[NXNTSKTWUTXYWJYNWJRJSYRJINHFQGJSJĂ Y

23.39



Provision for leave encashment

20.31



4YMJWUWT[NXNTSX 7JKJWSTYJ

16.07



59.77

52.70

23. NON-CURRENT PROVISIONS

110

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

24. TAXATION 0UJVTL[H_YLSH[LK[VP[LTZJOHYNLKVYJYLKP[LKKPYLJ[S`[VWYVĂ&#x201A;[HUKSVZZK\YPUN[OL`LHY!

Statement of profit or loss (ZWWJSYNSHTRJYF] HTSYNSZNSLTUJWFYNTSX (ZWWJSYNSHTRJYF] INXHTSYNSZJITUJWFYNTSX )JKJWWJIYF]J]UJSXJ GJSJĂ Y 2NSNRZRFQYJWSFYJYF] HTSYNSZNSLTUJWFYNTSX Relating to origination and reversal of temporary differences (continuing operations) Relating to origination and reversal of temporary differences (discontinued operations) Total

2016-17

2015-16

24.80 -

105.43 61.72

(11.83) (13.67) (0.70)

(60.13) (0.41) 106.61

2016-17

2015-16

157.03 (33.27) 123.76

 146.70  

Income Tax expense:

Reconciliation: 5WTĂ Y QTXXGJKTWJYF]KWTRHTSYNSZNSLTUJWFYNTSX 5WTĂ Y QTXXGJKTWJYF]KWTRINXHTSYNSZJITUJWFYNTSX (JJV\U[PUNWYVĂ&#x201A;[SVZZILMVYLPUJVTL[H_ &UUQNHFGQJYF]WFYJ

34.608%



Computed tax expense *]HJUYNTSFQNYJRSTYHTSXNIJWJIKTWYF]UZWUTXJ

42.83 -

(343.35) 

.SHTRJSTYHTSXNIJWJIKTWYF]UZWUTXJ

(2.30)



*]UJSXJSTYFQQT\JIKTWYF]UZWUTXJ

3.46

44.37

&IINYNTSFQFQQT\FSHJXKTWYF]UZWUTXJ

(15.61)

( 53.74)

Additional allowances for capital gain

-



Carried forward losses utilised

-



(20.16) (8.92) (0.70)

( 0.35) 106.61

9F]UFNIFYQT\JWWFYJ Other temporary differences 0UJVTL[H_L_WLUZLJOHYNLK[V[OLZ[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZ .SHTRJYF]FYYWNGZYFGQJYTHTSYNSZNSLTUJWFYNTSX .SHTRJYF]FYYWNGZYFGQJYTINXHTSYNSZJITUJWFYNTSX Total

(0.70)

45.30

(0.70)

61.31 106.61

Deferred tax relates to the following: Balance sheet

Recognised in statement of profit or loss

As at 31-03-2017

As at 31-03-2016

2016-17

2015-16

2.14 34.60 (81.01) (204.82) 3.88 18.63 11.83 ( 214.75)

 42.16   1.71 0.45    20.74 -

(0.34) (7.56) 19.82 (1.71) (0.45) 6.02 (2.11) 11.83

   6.45 7.66 0.32 0.03  (2.03) -

25.50

60.54

As at 31-03-2017

As at 31-03-2016

( 240.25)

( 301.40)

13.67

60.13

9F]NSHTRJ J]UJSXJIZWNSLYMJUJWNTIWJHTLSNXJINSUWTĂ YTWQTXXKWTRINXHTSYNSZJITUJWFYNTSX

-

0.41

)JKJWWJIYF]YWFSXKJWWJITSINXHTSYNSZJITUJWFYNTSX

-

0.61

*]UJSXJXFQQT\FGQJTSUF^RJSYGFXNX :SZXJIYF]QTXXJXIJUWJHNFYNTS Other items giving rise to temporary differences &HHJQJWFYJIIJUWJHNFYNTSKTWYF]UZWUTXJX Finance lease Service concession arrangements Fair valuation of property, plant and equipment (PP&E) Impairment of loan Provision for loss allowance 2NSNRZRFQYJWSFYJYF] Deferred tax asset / (liability) Net (income) / expense

( 240.25)

Reconciliation of deferred tax assets / (liabilities) net:

Opening balance as of 1st April 9F]NSHTRJ J]UJSXJIZWNSLYMJUJWNTIWJHTLSNXJINSUWTĂ YTWQTXX

)JKJWWJIYF]2NSNRZRFQYJWSFYJYF] Closing balance

11.83

-

(214.75)

( 240.25)

FINANCIALS

111


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

229.82

127.27

391.79

300.00

-



25. CURRENT FINANCIAL LIABILITIES - BORROWINGS Secured loans From Bank, Cash Credit, Packing Credit, etc. (Refer note below) Unsecured loans Working capital loan from bank: Demand loan Factoring loan 

8ZUUQNJWÁSFSHJKFHNQNY^

88.62

55.20

710.23



As at 31-03-2017

As at 31-03-2016

Acceptances

81.62



Due to micro and small enterprises

59.88

66.21

933.51



16.32



1091.33

1047.40

Note: Secured by hypothecation of inventories, book debts and trade receivables, both present and future.

26. CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES

Due to other than micro and small enterprises Due to subsidiaries

Note: The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED Act) as at 31st March, 2017. The disclosure pursuant to the said Act is as under:

(a) Principal amount due to suppliers under MSMED Act, 2006 (b) Interest accrued and due to suppliers under MSMED Act on the above amount, unpaid (c) Payment made to suppliers (other than interest) beyond the appointed day, during the year (d) Interest paid to suppliers under MSMED Act (other than Section 16) (e) Interest paid to suppliers under MSMED Act (Section 16) (f)

Interest due and payable towards suppliers under MSMED Act for payments already made

(g) Interest accrued and remaining unpaid at the end of each of the year to suppliers under MSMED Act

2016-17

2015-16

59.88

66.21

0.02

0.32

12.68



-

-

0.03

0.04

-

0.04

0.02



9MJNSKTWRFYNTSMFXGJJSLN[JSNSWJXUJHYTKXZHM[JSITWXYTYMJJ]YJSYYMJ^HTZQIGJNIJSYNÁJIFXRNHWTFSIXRFQQJSYJWUWNXJXTSYMJGFXNXTKNSKTWRFYNTS available with the Company.

112

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

27. CURRENT-OTHER FINANCIAL LIABILITIES Current maturities of long- term debts

119.74

-

0.12

0.12

-

3.72

5.39

1.10

5.07

6.62

1.27

1.62

Security deposits

7.47

7.42

Due to directors

4.32



78.74



.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY Finance lease obligations Interest accrued but not due on borrowings Due to related parties: Due to subsidiaries Investor Education and Protection Fund: (Refer note below) Unclaimed dividend

Financial guarantee obligations Other payables: Employee dues

13.61

Others

19.63

  33.24



255.36



Note: There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31st March, 2017 and 31st March, 2016.

As at 31-03-2017

As at 31-03-2016

28. OTHER CURRENT LIABILITIES Advances from customers Due to customers Balance with banks overdrawn as per books

236.28



24.18

26.20

0.71

-

Other payables: Statutory dues Others



5.98



18.82

46.17 

24.80 285.97

As at 31-03-2017

As at 31-03-2016

10.01

16.04

1.44



29. SHORT-TERM PROVISIONS Provision for gratuity 5WT[NXNTSKTWUTXYWJYNWJRJSYRJINHFQGJSJĂ Y Provision for leave encashment Other provisions (Refer note below)

3.14



54.16



68.75

75.62

FINANCIALS

113


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

Note: Disclosures as required by Indian Accounting Standard (Ind AS) 37 Provisions, Contingent Liabilities and Contingent Assets: (1) Movement in provisions:

3FYZWJTKUWT[NXNTSX Carrying amount at the beginning of the year* Amount transferred due to demerger Additional provision made during the year # Amounts used during the year Unused amounts reversed during the year # Carrying amount at the end of the year *

3FYZWJTKUWT[NXNTSX

*]HNXJIZY^(ZXYTRXIZY^ 8JW[NHJYF]

8FQJXYF];&9

Warranties 2016-17

2015-16

2016-17

2015-16

2016-17

2015-16

40.63



11.93

11.07

3.50

4.53

0.94

-

-

2.13

-

-

13.61

15.06

-

3.00

-

-

-

2.24

-

-

-

-

8.86



3.61

0.01

-

1.03

44.44

40.63

8.32



3.50

3.50

1NVZNIFYJIIFRFLJX

Other litigation claims

Total

2016-17

2015-16

2016-17

2015-16

2016-17

2015-16

7.69

6.12

4.24

7.16

67.99



Amount transferred due to demerger

-

-

-

0.06

0.94



Additional provision made during the year #

-

1.57

4.97

-

18.58



Amounts used during the year

-

-

-

-

-

2.24

-

-

2.93



15.40



7.69



6.28

4.24

70.23



Carrying amount at the beginning of the year*

Unused amounts reversed during the year # Carrying amount at the end of the year *

# Additional provision made during the year and reversal of unused amount are included in the respective head of accounts. * Carrying amounts comprise of non-current and current provisions. (2) Nature of provisions: (a) Product warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, which fail to perform satisfactorily IZWNSLYMJ\FWWFSY^UJWNTI5WT[NXNTSRFIJWJUWJXJSYXYMJFRTZSYTKYMJJ]UJHYJIHTXYTKRJJYNSLXZHMTGQNLFYNTSTSFHHTZSYTKWJHYNĂ HFYNTSWJUQFHJRJSY 9MJYNRNSLTKTZYĂ&#x201A;T\XNXJ]UJHYJIYTGJ\NYMNSFUJWNTITKY\T^JFWX G 5WT[NXNTSKTWXFQJXYF];&9WJUWJXJSYXQNFGNQNY^TSFHHTZSYTKSTSHTQQJHYNTSTKIJHQFWFYNTSKTWRXFSITYMJWQJLFQRFYYJWX\MNHMFWJNSFUUJFQZSIJWYMJ&HY Rules. H 5WT[NXNTSKTWJ]HNXJIZY^HZXYTRXIZY^XJW[NHJYF]WJUWJXJSYXYMJINKKJWJSYNFQIZY^QNFGNQNY^YMFYNXJ]UJHYJIYTRFYJWNFQNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ I 5WT[NXNTSKTWQNVZNIFYJIIFRFLJXMFXGJJSRFIJTSHTSYWFHYXKTW\MNHMIJQN[JW^IFYJXFWJJ]HJJIJIFSIHTRUZYJINSWJFXTSFGQJFSIUWZIJSYRFSSJW J 5WT[NXNTSKTWQNYNLFYNTSWJQFYJITGQNLFYNTSXWJUWJXJSYXQNFGNQNYNJXYMFYFWJJ]UJHYJIYTRFYJWNFQNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ

114

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

2016-17

2015-16

30. REVENUE FROM OPERATIONS Sale of products Sale of services Construction contracts



4379.10 46.43



335.90

 4761.43



4761.43



2016-17

2015-16

CONTRACTS IN PROGRESS Contract revenue recognised for the year &LLWJLFYJFRTZSYTKHTXYXNSHZWWJIFSIWJHTLSNXJIUWTĂ YX QJXXWJHTLSNXJIQTXXJXYTIFYJ

335.90



2374.61



Amount of customer advances outstanding for contracts in progress at reporting date

28.37

36.51

Retention amount due from customer for contract in progress as at the reporting date

122.61

146.41

Sales Value

Sales Value

2016-17

2015-16

1715.92



908.11



Note:

DISCLOSURE OF SALE OF PRODUCTS (i)

Transformers, Reactors and Accessories thereof

(ii)

Switchgears, Control Equipments and Accessories thereof

(iii)

Traction Electronic, Industrial Drives and SCADA

(iv) Electric Motors, Alternators and Drives Panels (v)

*QJHYWNH8YJJQ8YFRUNSLFSI1FRNSFYJX

(vi) Electric Fans, Ventilation and Pollution Control Systems (vii) Others

178.13



1752.49

1512.60

50.74

50.76

12.66



143.38



4761.43



2016-17

2015-16

168.57



0.38



-

0.01

31. OTHER INCOME Interest income Dividend income: Subsidiaries Others Gain on sale of investments (net)

2.52



*]HMFSLJLFNS SJY

4.98

14.40

+FNW[FQZJLFNSTSĂ SFSHNFQNSXYWZRJSYXFYKFNW[FQZJYMWTZLMUWTĂ YTWQTXX

4.69

0.02

0.70



Other non-operating income: Income from lease of premises / business service centers 5WTĂ YTSXFQJTKUWTUJWY^UQFSYFSIJVZNURJSY SJY Miscellaneous income

4.41



14.16



200.41

226.33

FINANCIALS

115


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

2016-17

2015-16

32. COST OF MATERIALS CONSUMED Opening stock

146.43



Add: Purchases

3164.27

2621.57

Less: Closing stock

Less: Scrap sales

335.78

146.43

2974.92

 

50.30



2924.62 Add: Sub-contracting charges

220.09

174.13

3144.71



Notes:

2016-17

2015-16

(a) DISCLOSURE OF MATERIALS CONSUMED (i)

Ferrous materials

689.95

615.66

(ii)

3TSKJWWTZXRFYJWNFQX

567.51



(iii) Chemicals, Oils and Paints

107.12

105.66

(iv) Wires, Pipes, Tubes and Cables

102.16

51.43

1147.05



(v) Components (vi) Others

361.13

402.27

2974.92



2016-17

2015-16

225.12



225.12



(b) Opening stock and closing stock excludes stock related to discontinued operations.

33. PURCHASES OF STOCK-IN-TRADE Purchases of stock-in-trade

2016-17

2015-16

34. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE *OHUNLZPUPU]LU[VYPLZVMÃ&#x201A;UPZOLKNVVKZHUK^VYRPUWYVNYLZZ! Closing stock: Finished goods

121.63

43.25

Work-in-progress

201.31



322.94

243.14

Opening stock: Finished goods Work-in-progress

43.25

30.63

199.89

 

243.14



(79.80) Changes in inventories of stock-in-trade: Closing stock: Stock-in-trade

0.51

88.83

Opening stock: Stock-in-trade

Note: 4UJSNSLXYTHPFSIHQTXNSLXYTHPJ]HQZIJXXYTHPWJQFYJIYTINXHTSYNSZJITUJWFYNTSX

116

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

0.20

0.51 (88.32)

(0.31)

(168.12)

 


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

2016-17

2015-16

307.52



19.88



35. EMPLOYEE BENEFITS EXPENSE Salaries, wages and bonus Contribution to provident and other funds 5TXYWJYNWJRJSYRJINHFQGJSJĂ YX 8YFKK\JQKFWJJ]UJSXJX

2.81



28.11 358.32

25.76 

2016-17

2015-16

163.83



36. FINANCE COSTS Interest on loans .SYJWJXYTSĂ SFSHJQJFXJ

-



163.83



2016-17

2015-16

91.74



91.74



2016-17

2015-16

Consumption of stores and spares

25.64



Power and fuel

41.04

41.10

Rent

4.43



Repairs to buildings

5.73

6.63

Repairs to machinery

19.81

17.22

37. DEPRECIATION AND AMORTISATION EXPENSE )JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

38. OTHER EXPENSES

Insurance

8.59

6.60

7FYJXFSIYF]JX

14.49



Freight and forwarding

74.86



Packing materials

55.41



After sales services including warranties

46.97

30.52

Sales promotion

26.17

33.16

(TWUTWFYJXTHNFQWJXUTSXNGNQNY^J]UJSXJX

2.29



*]HNXJIZY^TSXFQJX

404.60

324.31

2NXHJQQFSJTZXJ]UJSXJX 7JKJWSTYJGJQT\

159.38



889.41



2016-17

2015-16

Audit fees

1.08

0.74

9F]FZINYKJJX

0.10

0.10

(JWYNĂ HFYNTS\TWP

0.86



Other services

0.01

0.24

*]UJSXJXWJNRGZWXJI

0.70

0.25

2.75

1.72

Note:

MISCELLANEOUS EXPENSES INCLUDES THE FOLLOWING: &ZINYTWX WJRZSJWFYNTS J]HQZINSLXJW[NHJYF]

FINANCIALS

117


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

As at 31-03-2017

As at 31-03-2016

39. CONTINGENT LIABILITIES AND COMMITMENTS A.

Contingent Liabilities:



YTYMJJ]YJSYSTYUWT[NIJIKTW

9.01



42.06



(c) *]HNXJIZY^HZXYTRXIZY^XJW[NHJYF]QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ

6.35

6.51

(d) .SHTRJYF]QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQUWJKJWWJIG^YMJIJUFWYRJSY

4.27



10.96



(a) Claims against the Company not acknowledged as debts (b) 8FQJXYF];&9QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ

B.

Commitments: *XYNRFYJIFRTZSYTKHTSYWFHYXWJRFNSNSLYTGJJ]JHZYJITSHFUNYFQFHHTZSYFSISTYUWT[NIJIKTW SJYTKFI[FSHJX

Notes: F 9MJ(TRUFS^ITJXSTYJ]UJHYFS^WJNRGZWXJRJSYNSWJXUJHYTKYMJFGT[JHTSYNSLJSYQNFGNQNYNJX G .YNXSTYUWFHYNHFGQJYTJXYNRFYJYMJYNRNSLTKHFXMTZYĂ&#x201A;T\XNKFS^NSWJXUJHYTKRFYYJWXFY FYT IFGT[JUJSINSLWJXTQZYNTSTKYMJFWGNYWFYNTSFUUJQQFYJ proceedings.

40. DISCLOSURE OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 8TH NOVEMBER 2016 TO 30TH DECEMBER 2016 AS REQUIRED BY MCA NOTIFICATION G.S.R. 308(E), DATED 30TH MARCH 2017

(QTXNSLHFXMNSMFSIFXTS

Total (`)

404500.00





Add : Permitted receipts

-





Less: Permitted payments

-





404500.00

10.00

404510.00

-





Less : Amount deposited in banks Closing cash in hand as on 30.12.2016 

Specified Other 'FSP3TYJX Denomination (`) notes (`)

9MJYJWR¡8UJHNà JI'FSP3TYJX¸XMFQQMF[JXFRJRJFSNSLUWT[NIJINSYMJSTYNà HFYNTSTKYMJ,T[JWSRJSYTK.SINFNSYMJ2NSNXYW^TK+NSFSHJ)JUFWYRJSYTK *HTSTRNH&KKFNWXSZRGJW84 *IFYJIYM3T[JRGJW

41. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 17 LEASES Operating lease commitments: (i)

Company as lessor: The Company has not entered into operating leases.

(ii) Company as lessee: The Company has taken various residential / commercial premises and plant and equipments under cancellable operating lease. These lease agreements are STWRFQQ^WJSJ\JITSJ]UNW^\MJWJ[JWWJVZNWJI

118

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

2016-17

2015-16

42. Expenses capitalised during the year: (a) Raw materials consumed

-

1.24

(b) *RUQT^JJGJSJĂ YX

5.89

6.26

(c) 4YMJWJ]UJSXJX

5.12



43. Value of imports (on C.I.F. basis): 482.02



(b) Spare parts

4.45

2.34

(c) Capital goods

2.23



(a) Technical know-how fees

8.27

10.06

(b) Professional charges

6.72



(a) Raw materials

44. Expenditure in foreign currency:

(c) Interest (d) Commission, travelling and others

2.86

1.45

21.37

37.52

669.46



45. Earnings in foreign exchange: (a) *]UTWYTKLTTIX TS+4'GFXNXNSHQZINSLIJJRJIJ]UTWYX`HWTWJ (Previous year `HWTWJ

6.18



(c) Interest

57.85



(d) Others

72.93

74.23

(b) Service income

46. Expenditure on research and development: (a) Capital expenditure: Plant and equipments

0.01



+ZWSNYZWJFSIĂ ]YZWJX

-

0.15

Intangible assets

-

4.77

Intangible assets under development

10.54

7.61

Sub-total

10.55



(a)

(b) Revenue expenditure: 0.82

1.14

*RUQT^JJGJSJĂ YX

Raw materials consumed

14.29



Depreciation and amortisation

14.19

11.05

Consumption of stores and spares

0.17



Power and fuel

0.16

0.24

Rent

0.08

0.05

Repairs to buildings

0.01

0.02

Repairs to machinery

0.05

0.46

Insurance

0.00

0.00

7FYJXFSIYF]JX

0.04

0.00

2NXHJQQFSJTZXJ]UJSXJX

4.87

3.27

4YMJWJ]UJSXJX

Sub-total

(b)

34.68



Total

(a) + (b)

45.23



FINANCIALS

119


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

2016-17

2015-16

47. COST OF MATERIALS CONSUMED Percentage of total Consumption

` crore

Percentage of total Consumption

` crore

Raw materials and construction materials: Imported

15.85

471.38

17.53

463.57

Indigenous

84.15

2503.54





100.00

2974.92

100.00



Spare parts: Imported Indigenous

7.85

2.01





92.15

23.60





100.00

25.61

100.00



100.00

0.03

100.00

0.01

100.00

0.03

100.00

0.01

1TTXJYTTQX Indigenous

3TYJ)NXHQTXZWJXWJUTWYJINS3TYJXYT\NYMWJXUJHYYTHTSYNSZNSLTUJWFYNTSX 48. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 19 EMPLOYEE BENEFITS H +LĂ&#x201A;ULKJVU[YPI\[PVUWSHUZ! Amount of ` 15.51 crore (Previous year `HWTWJNXWJHTLSNXJIFXFSJ]UJSXJFSINSHQZIJINS*RUQT^JJGJSJĂ YXJ]UJSXJFXZSIJWYMJKTQQT\NSLIJĂ SJI contribution plans: (Refer note 35)

2016-17

2015-16

10.99

10.62

Benefits (Contribution to): Provident fund Superannuation fund

4.22

4.02

Employee state insurance scheme

0.28

0.24

0.02 15.51

0.02 

1FGTZW\JQKFWJXHMJRJ Total I +LĂ&#x201A;ULKILULĂ&#x201A;[WSHUZ! 





















Gratuity 

9MJ(TRUFS^UWT[NIJXKTWLWFYZNY^FIJĂ SJIGJSJĂ YWJYNWJRJSYUQFSHT[JWNSLJQNLNGQJJRUQT^JJX9MJ,WFYZNY^5QFSUWT[NIJXFQZRUXZRUF^RJSYYT[JXYJI employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 30 daysâ&#x20AC;&#x2122; salary for each completed year of XJW[NHJXZGOJHYYTFRF]NRZRTK`HWTWJ;JXYNSLTHHZWXZUTSHTRUQJYNTSTKĂ [JHTSYNSZTZX^JFWXTKXJW[NHJNSFHHTWIFSHJ\NYM.SINFSQF\



9MJ(TRUFS^RFPJXFSSZFQHTSYWNGZYNTSXYTYMJ(WTRUYTS,WJF[JX­1NRNYJI­,WFYZNY^9WZXY­\MNHMNX­KZSIJIIJà SJIGJSJà YUQFSKTWVZFQNK^NSLJRUQT^JJX



9MJ'TFWITK9WZXYJJXNXWJXUTSXNGQJKTWYMJFIRNSNXYWFYNTSTKYMJUQFSFXXJYXFSIKTWYMJIJĂ SNYNTSTKYMJNS[JXYRJSYXYWFYJL^



7VZ[YL[PYLTLU[TLKPJHSILULĂ&#x201A;[



5TXYWJYNWJRJSYRJINHFQGJSJĂ YNSHQZIJXMTXUNYFQN_FYNTSHT[JW GJSJĂ YXTS(JXXFYNTSTK*RUQT^RJSYKTWYMJ5TQNH^9MNXHT[JWNXFUUQNHFGQJTSQ^YTJRUQT^JJ FSI XUTZXJ FX UJW YMJ QNRNYX XUJHNĂ JI KTW YMJ QFXY LWFIJ \MNQJ NS JRUQT^RJSY 9MNX HT[JWFLJ ITJX STY KTWR UFWY TK JXXJSYNFQ YJWRX FSI HTSINYNTS TK JRUQT^RJSYFSINXFGJSJĂ YJ]YJSIJIG^YMJHTRUFS^FXFUFWYTKNYXXTHNFQGJSJĂ YUTQNHNJX The policies of Medical, Health and Hospitalization insurance are subject to change based on contemporary market trends and practices.

120

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

48. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 19 EMPLOYEE BENEFITS (Contd.) 

9MJ KTQQT\NSL YFGQJX XZRRFWNXJ YMJ HTRUTSJSYX TK SJY GJSJĂ Y J]UJSXJX WJHTLSNXJI NS YMJ XYFYJRJSY TK UWTĂ Y FSI QTXX FSI YMJ KZSIJI XYFYZX FSI FRTZSYX recognised in the balance sheet for the respective plans: Post Retirement Medical Benefits

Gratuity 2016-17

2015-16

2016-17

2015-16

(Funded)

(Funded)

(Nonfunded)

(Nonfunded) 23.00

I

*OHUNLPUWYLZLU[]HS\LVMKLĂ&#x201A;ULKILULĂ&#x201A;[VISPNH[PVUK\YPUN[OL`LHY

1

5WJXJSY;FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJGJLNSSNSLTKYMJ^JFW

52.90



23.12

2

Interest cost

4.34

4.07

1.92

1.63

3

Current service cost

3.05

3.62

0.89

 -

4

Past service cost

-

-

-

5

1NFGNQNY^YWFSXKJWKWTRTYMJW(TRUFS^

-

-

-

-

6

1NFGNQNY^YWFSXKJWWJITZYIN[JXYRJSY

(0.67)

(15.43)

(0.74)

(5.53)

7

'JSJĂ YXUFNIINWJHYQ^G^JRUQT^JW

(0.92)

(2.45)

(1.64)

(1.64)



'JSJĂ YXUFNI

(8.75)

(6.66)

-

-



Actuarial changes arising from changes in demographic assumptions

-

-

-

-

1.77

 

4.47

 

10 &HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSĂ SFSHNFQFXXZRUYNTSX 11 &HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX 12 5WJXJSY;FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJJSITKYMJ^JFW II

9.90



(2.99)

5.71

61.62



25.03

23.12

36.86



NA

3&

3.03

4.07

NA

3& 3&

Change in fair value of plan assets during the year

1

Fair value of plan assets at the beginning of the year

2

Interest Income

3

Contributions paid by the employer

16.04

-

NA

4

'JSJĂ YXUFNIKWTRYMJKZSI

(8.75)

(6.66)

NA

3&

5

Assets transferred out / divestments

(0.67)

(15.43)

NA

3&

6

7JYZWSTSUQFSFXXJYXJ]HQZINSLNSYJWJXYNSHTRJ

7

Fair value of plan assets at the end of the year

III

Net asset / (liability) recognised in the balance sheet

1

5WJXJSY;FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJJSITKYMJ^JFW

2

Fair value of plan assets at the end of the year

3 4

5.10

(3.00)

NA

3&

51.61



NA

3&

(61.62)

 

(25.03)

(23.12)

51.61



-

-

Amount recognised in the balance sheet

(10.01)

(16.04)

(25.03)

(23.12)

3JY QNFGNQNY^FXXJYHZWWJSY

(10.01)

(16.04)

(1.64)

(1.64)

-

-

(23.39)

 

3JY QNFGNQNY^FXXJYSTSHZWWJSY IV

,_WLUZLZYLJVNUPZLKPU[OLZ[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZMVY[OL`LHY

1

Current service cost

3.05

3.62

0.89



2

.SYJWJXYHTXYTSGJSJĂ YTGQNLFYNTS SJY

1.32

-

1.92

1.63

3

9TYFQJ]UJSXJXNSHQZIJINSJRUQT^JJGJSJĂ YXJ]UJSXJ

4.37

3.62

2.81

2.54

V

Recognised in other comprehensive income for the year

1

Actuarial changes arising from changes in demographic assumptions

2

&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSĂ SFSHNFQFXXZRUYNTSX

3

&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX

4

7JYZWSTSUQFSFXXJYXJ]HQZINSLNSYJWJXYNSHTRJ

5

Recognised in other comprehensive income

VI

4H[\YP[`WYVĂ&#x201A;SLVMKLĂ&#x201A;ULKILULĂ&#x201A;[VISPNH[PVU

-

-

-

-

1.77

 

4.47

 

9.90



(2.99)

5.71

(5.10)

3.00

NA

3&

6.57

14.74

1.48

4.75

1

<NYMNSYMJSJ]YRTSYMX SJ]YFSSZFQWJUTWYNSLUJWNTI

12.69



1.88

1.64

2

Between 2 and 5 years

26.10

30.15

7.99



3

Between 6 and 10 years

24.96

32.13

12.33



FINANCIALS

121


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

48. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 19 EMPLOYEE BENEFITS (Contd.) Post Retirement Medical Benefits

Gratuity 2016-17

2015-16

2016-17

2015-16

(Funded)

(Funded)

(Nonfunded)

(Nonfunded)

VII 8\HU[P[H[P]LZLUZP[P]P[`HUHS`ZPZMVYZPNUPÃ&#x201A;JHU[HZZ\TW[PVUPZHZILSV^! 1

2

0UJYLHZLKLJYLHZLVUWYLZLU[]HS\LVMKLÃ&#x201A;ULKILULÃ&#x201A;[ZVISPNH[PVUH[[OLLUKVM[OL`LHY (i)

One percentage point increase in discount rate

(3.03)

(2.51)

(2.57)

 

(ii)

One percentage point decrease in discount rate

3.40



3.19



(i)

One percentage point increase in rate of salary Increase

3.49



NA

3&

(ii)

One percentage point decrease in rate of salary Increase

(3.16)

(2.63)

NA

3&

(i)

One percentage point increase in employee turnover rate

0.86



NA

3&

(ii)

One percentage point decrease in employee turnover rate

(0.97)

 

NA

3&

(i)

4SJUJWHJSYFLJUTNSYNSHWJFXJNSRJINHFQ.SÃ&#x201A;FYNTSWFYJ

NA

3&

3.22

2.72

(ii)

4SJUJWHJSYFLJUTNSYIJHWJFXJNSRJINHFQ.SÃ&#x201A;FYNTSWFYJ

NA

3&

(2.60)

(2.22)

Sensitivity Analysis Method 8JSXNYN[NY^FSFQ^XNXNXIJYJWRNSJIGFXJITSYMJJ]UJHYJIRT[JRJSYNSQNFGNQNY^NKYMJFXXZRUYNTSX\JWJSTYUWT[JIYTGJYWZJTSINKKJWJSYHTZSY Post Retirement Medical Benefits

Gratuity As at 31-03-2017

As at 31-03-2016

As at 31-03-2017

As at 31-03-2016

(Funded)

(Funded)

3TSKZSIJI

(Nonfunded)

100%



NA

3&

7

12

30

30

7.64% p.a.

 UF

7.54% p.a.

 UF

6.00% p.a. for the next 1 year, 4.00% p.a. for the next 2 years, starting from the 2nd year, 3.50% p.a. thereafter, starting from the 4th year

 UF KTWYMJSJ]Y ^JFW  p.a. for the SJ]Y^JFWX starting from the 2nd year,  UF thereafter, starting from the 4th year

NA

3&

Indian Assured Indian 1N[JX2TWYFQNY^ Assured Lives  Mortality (2006-08)

Indian Assured 1N[JX2TWYFQNY^ 

VIII The major categories of plan assets as a percentage of total Insurer managed funds

122

IX

>LPNO[LKH]LYHNLK\YH[PVUVM[OLKLÃ&#x201A;ULKILULÃ&#x201A;[VISPNH[PVUPU`LHYZ

X

Actuarial assumptions

1

Discount rate

2

Salary escalation

3

Mortality rate during employment

4

Mortality post retirement rate

5

Rate of Employee Turnover

6

2JINHFQUWJRNZRNSÃ&#x201A;FYNTSWFYJ

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Indian Assured Lives Mortality (2006-08) NA

3&

Indian Assured Lives Mortality (2006-08)

Indian Assured 1N[JX2TWYFQNY^ 

4.00%p.a.

 UF

4.00%p.a.

 UF

NA

3&

2.00 % p.a.

 UF


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

48. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 19 EMPLOYEE BENEFITS (Contd.)

*]UJHYJIHTSYWNGZYNTSYTYMJIJĂ SJIGJSJĂ YUQFSKTWYMJSJ]YFSSZFQWJUTWYNSLUJWNTI

2016-17

2015-16

7.22



Notes : N

9MJFHYZFWNFQ[FQZFYNTSTKUQFSFXXJYXFSIYMJUWJXJSY[FQZJTKYMJIJĂ SJIGJSJĂ YTGQNLFYNTS\JWJHFWWNJITZYFYXY2FWHM9MJUWJXJSY[FQZJTK YMJIJĂ SJIGJSJĂ YTGQNLFYNTSFSIYMJWJQFYJIHZWWJSYXJW[NHJHTXYFSIUFXYXJW[NHJHTXY\JWJRJFXZWJIZXNSLYMJ5WTOJHYJI:SNY(WJINY2JYMTI

(ii)

Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

(iii) The salary escalation rate is arrived after taking into consideration the seniority, the promotion and other relevant factors, such as, demand and supply in employment market. (c) Provident Fund: The Company makes contribution towards provident fund which is administered by the trustees. The Rules of the Companyâ&#x20AC;&#x2122;s Provident Fund administered by a trust, require that if the Board of the Trustees are unable to pay interest at the rate declared by the Government under Para 60 of the Employees Provident +ZSI8HMJRJKTWYMJWJFXTSYMFYYMJWJYZWSTSNS[JXYRJSYNXQJXXKTWFS^TYMJWWJFXTSYMJSYMJIJĂ HNJSH^XMFQQGJRFIJLTTIG^YMJ(TRUFS^RFPNSL NSYJWJXYXMTWYKFQQFIJĂ SJIGJSJĂ YUQFS&HHTWINSLQ^YMJHTRUFS^MFXTGYFNSJIFHYZFWNFQ[FQZFYNTSFSIGFXJITSYMJGJQT\UWT[NIJIFXXZRUYNTSYMJWJNXST IJĂ HNJSH^FXFYYMJGFQFSHJXMJJYIFYJ-JSHJYMJQNFGNQNY^NXWJXYWNHYJIYT\FWIXRTSYMQ^HTSYWNGZYNTSXTSQ^ As at 31-03-2017

As at 31-03-2016

Plan assets at period end, at fair value

312.16

307.12

5WJXJSY[FQZJTKIJĂ SJITGQNLFYNTSFYUJWNTIJSI

281.59



As at 31-03-2017

As at 31-03-2016

7.64% p.a.

 UF

Indian Assured Lives Mortality (2006-08) Ultimate

Indian &XXZWJI1N[JX Mortality  Ultimate

Assumptions used in determining the present value of obligation:

Rate of Discounting Mortality Rate

Attrition Rate

4.00% p.a.

 UF

Guaranteed rate of Interest

8.65% p.a.

 UF

Whilst in service withdrawal

5.00% p.a.

 UF

49. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS Operating Segments: Power Systems

: Transformer, Switchgear and Turnkey Projects

Industrial Systems

: Electric Motors, Alternators, Drives, Traction Electronics and SCADA

0KLU[PĂ&#x201A;JH[PVUZVM:LNTLU[Z! The chief operational decision maker monitors the operating results of its Business Segments separately for the purpose of making decisions about resource allocation FSIUJWKTWRFSHJFXXJXXRJSY8JLRJSYUJWKTWRFSHJNXJ[FQZFYJIGFXJITSUWTĂ YTWQTXXFSINXRJFXZWJIHTSXNXYJSYQ^\NYMUWTĂ YTWQTXXNSYMJĂ SFSHNFQXYFYJRJSYX 4UJWFYNSLXJLRJSYXMF[JGJJSNIJSYNĂ JITSYMJGFXNXTKYMJSFYZWJTKUWTIZHYXXJW[NHJXFSIMF[JGJJSNIJSYNĂ JIFXUJWYMJVZFSYNYFYN[JHWNYJWNFXUJHNĂ JINS the Ind AS. Segment revenue and results: 

9MJJ]UJSXJXFSINSHTRJX\MNHMFWJSTYINWJHYQ^FYYWNGZYFGQJYTFS^GZXNSJXXXJLRJSYFWJXMT\SFXZSFQQTHFGQJJ]UJSINYZWJ SJYTKZSFQQTHFYJINSHTRJ Segment assets and liabilities: Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities primarily include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets / liabilities. Inter segment transfer:



.SYJWXJLRJSYUWNHJXFWJSTWRFQQ^SJLTYNFYJIFRTSLXYXJLRJSYX\NYMWJKJWJSHJYTYMJHTXYXRFWPJYUWNHJFSIGZXNSJXXWNXPX5WTĂ YTWQTXXTSNSYJWXJLRJSY transfers are eliminated at the Company level.

FINANCIALS

123


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

49. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS (Contd.) Summary of the Segmental Information as at and for the year ended 31st March, 2017 is as follows:

Particulars Revenue *]YJWSFQXFQJX ,WTXX8FQJX Add : Inter segment sales Total revenue Segment results Less: Finance costs Less:4YMJWZSFQQTHFGQJJ]UJSINYZWJSJYTKZSFQQTHFGQJNSHTRJ 7YVĂ&#x201A;[HM[LYĂ&#x201A;UHUJLJVZ[I\[ILMVYLL_JLW[PVUHSP[LTZHUK[H_ *]HJUYNTSFQNYJRX SJY 9F]J]UJSXJ SJYTKK2&9HWJINY 7YVĂ&#x201A;[MYVTJVU[PU\PUNVWLYH[PVUZHM[LY[H_ Loss from discontinued operations after tax 7YVĂ&#x201A;[MVY[OL`LHY Capital Employed: Segment assets Segment liabilities Net Assets (FUNYFQJ]UJSINYZWJ Depreciation and amortisation # 3TSHFXMJ]UJSXJXTYMJWYMFSIJUWJHNFYNTS

Eliminations / Unallocable Discontinued *]UJSINYZWJ Assets* Operations

Power Systems

Industrial Systems

2683.54 0.51 2684.05 208.00

2077.89 0.11 2078.00 190.04

-

(0.62) (0.62) -

4761.43 4761.43 398.04 163.83 (22.62) 256.83 (99.80) (0.70) 157.73 (33.27) 124.46

2265.25 949.08 1316.17 25.18 49.49 14.29

965.13 405.64 559.49 10.05 24.41 4.81

160.63 0.98 159.65 -

4000.12 287.70 3712.42 6.68 17.84 -

7391.13 1643.40 5747.73 41.91 91.74 19.10

Eliminations / Unallocable Discontinued *]UJSINYZWJ Assets* Operations**

Total

Total

Summary of the Segmental Information as at and for the year ended 31st March, 2016 is as follows:

Particulars Revenue *]YJWSFQXFQJX ,WTXX8FQJX Inter segment sales Total revenue Segment results Less: Finance costs Less:4YMJWZSFQQTHFGQJJ]UJSINYZWJSJYTKZSFQQTHFGQJNSHTRJ 7YVĂ&#x201A;[HM[LYĂ&#x201A;UHUJLJVZ[I\[ILMVYLL_JLW[PVUHSP[LTZHUK[H_ *]HJUYNTSFQNYJRX SJY 9F]J]UJSXJ Loss from continuing operations after tax 7YVĂ&#x201A;[MYVTKPZJVU[PU\LKVWLYH[PVUZHM[LY[H_ Loss for the year Capital Employed: Segment assets Segment liabilities Net Assets (FUNYFQJ]UJSINYZWJ Depreciation and amortisation # 3TSHFXMJ]UJSXJXTYMJWYMFSIJUWJHNFYNTS 

Power Systems

Industrial Systems

2424.66 0.02  

 0.36  

-

  -

    (61.41)  (1451.71) 45.30   

  1144.11 34.61 53.12 7.02

    26.11 

320.32   -

 213.41 3076.44   -

6625.21 1670.74    15.30

:SFQQTHFGQJFXXJYXHTRUWNXJFXXJYXFSIQNFGNQNYNJX\MNHMHFSSTYGJFQQTHFYJIYTYMJXJLRJSYX9F]HWJINYFXXJYXQNFGNQNYNJXFWJSTYHTSXNIJWJINSHFUNYFQJRUQT^JI ** Discontinued operations include segment assets of `HWTWJFSIXJLRJSYQNFGNQNYNJXTK`HWTWJUJWYFNSNSLYT&ZYTRFYNTS8^XYJRXGZXNSJXX\MNHM\FX XTQITZYIZWNSLYMJĂ SFSHNFQ^JFW # The disclosure is pertains to continuing business segments.

124

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

49. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS (Contd.) (a) Segment revenue by location of customers:

2016-17

2015-16

Sales and service revenue: Domestic



4104.23

Overseas: Asia

411.47

365.05

Africa

114.83



3TWYM&RJWNHF

36.98



South America

37.27

104.73

Europe

52.93

54.11

3.72



Australia

Total

657.20



4761.43



(b) Cost incurred on acquisition of tangible and intangible assets:

2016-17

2015-16

Domestic

Particulars

41.91



Overseas

-

-

41.91



As at 31-03-2017

As at 31-03-2016

Domestic

1318.43



Overseas

-

-

1318.43



As at 31-03-2017

As at 31-03-2016

1643.40

1670.74

Total (c) The carrying amount of non-current operating assets by location of assets:

Particulars

Total (d) Reconciliation of Segment Liabilities:

Particulars 1NFGNQNYNJXKWTR8JLRJSYX 1TSLYJWRGTWWT\NSLX

503.60

4.15

)JKJWWJIYF]QNFGNQNYNJX SJY

214.75

240.25

Short-term borrowings

710.23



Current maturities of long-term debt Total

119.86



3191.84



FINANCIALS

125


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES

*VZNY^.SYJWJXY Sr. 3T 3FRJTKYMJ7JQFYJI5FWY^

Country of Incorporation

As at 31-03-2017

As at 31-03-2016

List of related parties (i)

126

Subsidiaries:

1

(,5T\JW8TQZYNTSX1NRNYJI

India

100.00

100.00

2

(WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI

India

100.00

100.00

3

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI IJRJWLJI\JKWI2FWHM

India

-

-

4

CG International B.V.

9MJ3JYMJWQFSIX

100.00

100.00

5

(,55.&IMJXN[J5WTIZHYX1NRNYJI

India





6

ZIV Automation India 1NRNYJI NSHTWUTWFYJITSYM3T[JRGJWFSI demerged w.e.f. 6th March 2017)

India

-

-

7

(,-TQINSLX'JQLNZR3;

Belgium

100.00

100.00



(,5T\JW8^XYJRX'JQLNZR3;

Belgium

100.00

100.00



(,5T\JW8^XYJRX.WJQFSI1NRNYJI

Ireland

100.00

100.00

10

(,8FQJX3JY\TWPX+WFSHJ8&

France





11

CG Power Systems Canada Inc.

Canada

100.00

100.00

12

PT. CG Power Systems Indonesia

Indonesia





13

(,,FS_,JSJWFYTWFSI2TYTW1NRNYJI1NFGNQNY^(TRUFS^ KTWRJWQ^PST\SFX(,-TQINSLX-ZSLFW^0KY

Hungary

100.00

100.00

14

CG Electric Systems Hungary Zrt.

Hungary

100.00

100.00

15

2NHWTXTQ1NRNYJI HJFXJI\JKYM&UWNQ

Ireland

100.00

100.00

16

(,&ZYTRFYNTS8^XYJRX:01NRNYJI HJFXJI\JKYM2FWHM

17

CG Service Systems France SAS

:SNYJI0NSLITR

-

100.00

France

100.00

100.00

USA

100.00

100.00

:SNYJI0NSLITR

100.00

100.00

-

100.00



CG Power USA Inc. (formerly CG Power Solutions USA)



(,5T\JW8TQZYNTSX:01NRNYJI

20

(,5T\JW8^XYJRX'WF_NQ1YIF HJFXJI\JKYM)JHJRGJW

21

(,5T\JW8TQZYNTSX8FZIN&WFGNF1NRNYJI

51.00

51.00

22

(WTRUYTS,WJF[JX-TQINSLX2FZWNYNZX1NRNYJI QNVZNIFYJI\JKYM)JHJRGJW

Mauritius

-

100.00

Brazil Saudi Arabia

23

(,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI

Singapore

100.00

24

CG Industrial Holdings Sweden AB

Sweden

100.00

100.00

25

CG Drives and Automation Sweden AB

Sweden

100.00

100.00

26

(,)WN[JXFSI&ZYTRFYNTS3JYMJWQFSIX';

9MJ3JYMJWQFSIX

100.00

100.00

27

CG Drives and Automations Germany GmbH

Germany

100.00

100.00



?.;&UQNHFHNTSJX^9JHSTQTLNF81 HJFXJI\JKYM2FWHM

Spain

-

100.00



?.;2JYJWNSL8TQZYNTSX81 HJFXJI\JKYM2FWHM

Spain

-

100.00

30

?.;,WNI&ZYTRFYNTS81: HJFXJI\JKYM2FWHM

Spain

-

100.00

31

ZIV Communications S.A.U (ceased w.e.f. 6th March 2017)

Spain

-

100.00

32

?.;)T'WF_NQ1YIF HJFXJI\JKYM2FWHM

Brazil

-

100.00

33

?.;.)8RFWY*SJWL^3JY\TWPX HJFXJI\JKYM2FWHM

Spain

-

100.00

34

CG Middle East FZE

UAE

100.00

100.00

35

?.;+WFSHJ8&8: NSHTWUTWFYJITSWI3T[JRGJWFSIHJFXJI\JKYM2FWHM

-

100.00

36

(,-TQINSLX&RJWNHFX11( NSHTWUTWFYJITSYM4HYTGJW

USA

100.00

-

37

6*.11( NSHTWUTWFYJITSYM&UWNQ

USA

100.00

100.00

France



(,5T\JW&ZYTRFYNTS1NRNYJI NSHTWUTWFYJITSYM8JUYJRGJWFSIHJFXJI\JKYM2FWHM

-

-



(,5T\JW&RJWNHFX11( KTWRJWQ^'WF[NS11( NSHTWUTWFYJITSYM/FSZFW^

USA

100.00

100.00

40

(,8TQZYNTSX&RJWNHFX11( NSHTWUTWFYJITSYM4HYTGJW

USA

100.00

-

41

?.;3TWYM&RJWNHF11( NSHTWUTWFYJITSSI/ZQ^FSIHJFXJI\JKYM2FWHM

USA

-

-

42

(WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI

100.00

100.00

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Ireland

Malaysia


NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.)

*VZNY^.SYJWJXY Sr.

Country of

3T 3FRJTKYMJ7JQFYJI5FWY^

As at

As at

31-03-2017

31-03-2016

Sharjah





Saudi Arabia





/FUFS

40.00

40.00

Incorporation

(ii) Associates: 1

(,.SYJWSFYNTSFQ';97 (TSY5[Y(T11( KTWRJQ^5FZ\JQX2NIIQJ*FXY9WFINSL (TSYWFHYNSL 5[Y(T11(

2

8FZIN5T\JW9WFSXKTWRJWX(TRUFS^1NRNYJI

3

00*QÁ/FUFS

(iii) Joint Ventures: 1

(,1ZH^8\NYHMLJFW1NRNYJI HJFXJI\JKYM4HYTGJW

2

PT Crompton Prima Switchgear Indonesia

India Indonesia

-

-

51.00

51.00

(iv) Key Management Personnel: 



,FZYFR9MFUFW





3TS*]JHZYN[J)NWJHYTW(MFNWRFSFSI5WTRTYJW)NWJHYTW





033JJQPFSY





*]JHZYN[J)NWJHYTW(*4 2FSFLNSL)NWJHYTW





2FIMF[&HMFW^F





*]HJZYN[J)NWJHYTW+NSFSHJ (+4





2FSTO0TZQ





(TRUFS^8JHWJYFW^





4RPFW,TX\FRN





3TS*]JHZYN[J)NWJHYTW





'-FWNWFMFS





3TS*]JHZYN[J)NWJHYTW





8FSOF^1FGWTT





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW





;FQJSYNS;TS2FXXT\



3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW





7FRSN3NWZQF





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW



 8MNWNXM&UYJ





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW HJFXJIYTGJF)NWJHYTW\JKXY&UWNQ



 2JMJW5ZIZROJJ





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW HJFXJIYTGJF)NWJHYTW\JKYM2F^



(v) Other Related Parties in which directors are interested: 

'FQQFWUZW.SIZXYWNJX1NRNYJI



8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI



'.19,WFUMNH5FUJW5WTIZHYX1NRNYJI



&[FSYMF-TQINSLX1NRNYJI JSYNY^\NYMXNLSNÁHFSHJNSÂZJSHJT[JWYMJ(TRUFS^



&[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI



&[FSYMF7JFQY^1NRNYJI



2FQFSUZW(FUYN[J5T\JW1NRNYJI



(TWJQQF.S[JXYRJSYX1NRNYJI



&RGZOF(JRJSYX1NRNYJI

 &XFMN.SINF,QFXX1NRNYJI  (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI HJFXJI\JKYM&ZLZXY 12 Avantha Foundation  9MJWRF]1NRNYJI HJFXJI\JKYM2F^  .SKTX^X1NRNYJI  ;FWZS5WFPFXMFS5WN[FYJ1NRNYJI  0TWGF<JXY5T\JW(TRUFS^1NRNYJI  0*(.SYJWSFYNTSFQ1NRNYJI  /MFGZF5T\JW1NRNYJI  &[FSYMF5T\JW .SKWFXYWZHYZWJ1NRNYJI

FINANCIALS

127


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vi) The following transactions were carried out with the related parties in the ordinary course of business: Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 1

2

3

Purchase of goods and services Subsidiaries (,55.&IMJXN[J5WTIZHYX1NRNYJI (,5T\JW8^XYJRX.WJQFSI1NRNYJI CG Electric Systems Hungary Zrt. ?.;,WNI&ZYTRFYNTS81 CG Drives and Automation Sweden AB ZIV Communications S.A. (WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Other Related Party '.19,WFUMNH5FUJW5WTIZHYX1NRNYJI Total Sales of goods and services Subsidiaries (,55.&IMJXN[J5WTIZHYX1NRNYJI (,-TQINSLX'JQLNZR3; (,8FQJX3JY\TWPX+WFSHJ8& CG Power USA Inc. CG Electric Systems Hungary Zrt. (,&ZYTRFYNTS8^XYJRX:01NRNYJI (,5T\JW8^XYJRX'WF_NQ1YIF ?.;,WNI&ZYTRFYNTS81 ZIV Communications S.A. CG Middle East FZE CG Drives & Automation Sweden AB (WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI CG Drives and Automations Germany GmbH (,5T\JW8^XYJRX.WJQFSI1NRNYJI PT. CG Power Systems Indonesia (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Other Related Parties 'FQQFWUZW.SIZXYWNJX1NRNYJI '.19,WFUMNH5FUJW5WTIZHYX1NRNYJI 0TWGF<JXY5T\JW(TRUFS^1NRNYJI &XFMN.SINF,QFXX1NRNYJI 9MJWRF]1NRNYJI (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI /MFGZF5T\JW1NRNYJI Total

2016-17

2015-16

1.55 13.53 0.12 1.70 0.07 -

2.61  3.05  2.67  0.00

-



16.97

0.05 66.46

0.00 5.11 15.20 0.00 9.02 0.08 2.56 2.40 -

0.00 0.31 14.04   0.03 6.11 1.06 0.00 4.65  0.13 1.52 0.01 0.50 17.62

-

4.45

0.54 0.01 0.05 11.61 0.14 46.72

0.01 0.10 0.02 0.01  0.61  

-

0.01 0.01

-



30.85 30.85



Purchase of fixed assets Subsidiary (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Total

4

Subscription to equity shares Subsidiaries (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI ?.;&ZYTRFYNTS.SINF1NRNYJI Total

128

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vi) The following transactions were carried out with the related parties in the ordinary course of business (Contd.) Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 5

2016-17

2015-16

1.15

-

1.15

-

Investment in Financial Guarantee Joint Venture PT Crompton Prima Switchgear Indonesia Total

6

Sale of Investment Subsidiary (WTRUYTS,WJF[JX-TQINSLX2FZWNYNZX1NRNYJI Total

7

-

206.65

-

206.65

0.48

0.55

Interest expenses Subsidiary (,55.&IMJXN[J5WTIZHYX1NRNYJI Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Total

8

-



0.48

0.63

0.38



Dividend received Subsidiaries (,55.&IMJXN[J5WTIZHYX1NRNYJI (WTRUYTS,WJF[JX-TQINSLX2FZWNYNZX1NRNYJI Total

9

-

0.20

0.38



42.97

41.10

Guarantee fee Subsidiaries CG International B.V. (,5T\JW8TQZYNTSX1NRNYJI

1.54

-

44.51

41.10

'.19,WFUMNH5FUJW5WTIZHYX1NRNYJI

-

0.74

9MJWRF]1NRNYJI

-

0.04

-



Total 10 Rental income Other Related Parties

Total 11 Interest income Subsidiaries (,5T\JW8TQZYNTSX1NRNYJI

62.17

25.55

CG International B.V.

67.24



0.04

-

0.29

-

129.74

125.05

CG Drives & Automation Sweden AB

-

0.14

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI

-



(,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI Joint Venture PT Crompton Prima Switchgear Indonesia Total 12 Other income Subsidiaries

Other Related Party (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Total

6.97



6.97



FINANCIALS

129


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vi) The following transactions were carried out with the related parties in the ordinary course of business (Contd.) Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU

2016-17

2015-16

13 Payment of salaries, commission and perquisites Key Management Personnel Gautam Thapar

0.06

3.61

-



033JJQPFSY

5.02

0.41

Madhav Acharya*

5.05

3.26

Omkar Goswami

0.17

0.21

-

0.37

B. Harirahan

0.17



8FSOF^1FGWTT

0.14

0.16

Valentin Von Massow

0.39



Shirish Apte

0.35



7FRSN3NWZQF

0.14

-

Meher Pudumjee

0.01

0.12

1FZWJSY)JRTWYNJW

(TQJYYJ1J\NSJW

Minal Bhosale*

-

0.11

0.56 12.06

0.31 

&[FSYMF7JFQY^1NRNYJI

2.04

2.04

/MFGZF5T\JW1NRNYJI

1.48

0.41

3.52

2.45

2FSTO0TZQ Total 14 Rent paid Other Related Parties

Total 15 Other expenses Subsidiaries (,5T\JW8TQZYNTSX1NRNYJI (,5T\JW8^XYJRX'WF_NQ1YIF CG Electric Systems Hungary Zrt.

0.64

-

-



0.07

0.04

CG Drives & Automation Germany Gmbh

-

0.17

(WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI

-



0.00

0.53

44.28



-

0.13

Avantha Foundation

0.65

6.00

&[FSYMF7JFQY^1NRNYJI

0.58

1.15

/MFGZF5T\JW1NRNYJI

0.72 46.94

0.07 

20.53 20.53

25.37 25.37

-

 

-

 

PT. CG Power Systems Indonesia Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI

Total 16 Recovery of expenses Subsidiary CG International B.V. Total 17 Provision against advances Subsidiary CG International B.V. Total 18 Provision for investment Subsidiary CG International B.V. Total

130

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vi) The following transactions were carried out with the related parties in the ordinary course of business (Contd.) Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU

2016-17

2015-16

19 Loans and advances given (net of repayments) during the year Subsidiaries (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI (,5T\JW8TQZYNTSX1NRNYJI CG International B.V.

0.69

-

68.69

(37.45)

349.98



(,-TQINSLX'JQLNZR3;

0.46

-

(,5T\JW8^XYJRX'JQLNZR3;

1.01

1.07

CG Electric Systems Hungary Zrt.

(5.11)

5.23

?.;&UQNHFHNTSJX^9JHSTQTLNF81

-

(0.21)

CG Industrial Holdings Sweden AB

0.03

-

-

 

6.14



12.56 434.45

160.35

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF7JFQY^1NRNYJI Total

-

7JRZSJWFYNTSITJXSTYNSHQZIJYMJUWT[NXNTSXRFIJKTWLWFYZNY^QJF[JFSIUTXYWJYNWJRJSYRJINHFQGJSJĂ YXFXYMJ^FWJIJYJWRNSJITSFSFHYZFWNFQGFXNXKTWYMJ Company as a whole. vii) Amount due to / from related parties As at 31-03-2017

As at 31-03-2016

(,55.&IMJXN[J5WTIZHYX1NRNYJI

0.94

0.63

(,-TQINSLX'JQLNZR3;

0.26

0.27

(,5T\JW8^XYJRX'JQLNZR3;

0.16

0.17

CG Power USA Inc.

3.83



9.90

13.63

Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 1

Accounts payable Subsidiaries

CG Electric Systems Hungary Zrt. (,&ZYTRFYNTS8^XYJRX:01NRNYJI

-

1.64

?.;,WNI&ZYTRFYNTS81

-



(,5T\JW8^XYJRX.WJQFSI1NRNYJI

-

3.05

CG Drives and Automation Sweden AB

1.12

0.46

CG Power Systems Canada Inc.

0.04

0.04

?.;2JYJWNSL8TQZYNTSX81

-



ZIV Communication S.A.

-



PT. CG Power Systems Indonesia

-

0.17

0.07

-

(WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI Other Related Parties &[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI

Total

0.03

0.02

/MFGZF5T\JW1NRNYJI

-

0.50

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI

-

0.01

16.35



FINANCIALS

131


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vii) Amount due to / from related parties (Contd.) As at 31-03-2017

As at 31-03-2016

(,-TQINSLX'JQLNZR3;

0.16

0.17

(,5T\JW8^XYJRX'JQLNZR3;

0.38

0.42

-

0.01

Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 2

Accounts receivable Subsidiaries

(,5T\JW8^XYJRX.WJQFSI1NRNYJI (,8FQJX3JY\TWPX+WFSHJ8&

1.24



13.65



CG Power Systems Canada Inc.

0.03

0.03

CG Electric Systems Hungary Zrt.

2.37

4.33

(,&ZYTRFYNTS8^XYJRX:01NRNYJI

-

0.10

?.;,WNI&ZYTRFYNTS81

-

2.12

CG Drives and Automation Sweden AB

4.84

11.24

(WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI

0.09



CG Drives & Automation Germany GmbH

2.69

1.17

-

0.43

CG Power USA Inc.

PT. CG Power Systems Indonesia Other Related Parties 'FQQFWUZW.SIZXYWNJX1NRNYJI

0.23

0.23

8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI

0.11

0.11

'.19,WFUMNH5FUJW5WTIZHYX1NRNYJI

3.55

3.55

&XFMN.SINF,QFXX1NRNYJI

0.01

-

-

1.21

9MJWRF]1NRNYJI &[FSYMF5T\JWFSI.SKWFXYWZHYZWJ1NRNYJI

0.00

-

0TWGF<JXY5T\JW(TRUFS^1NRNYJI

3.58

0.25

/MFGZF5T\JW1NRNYJI

4.44



37.37

 74.45

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Total 3

Loans and advances receivable Subsidiaries (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI (,5T\JW8TQZYNTSX1NRNYJI

0.69

-

259.44



1168.72



(,-TQINSLX'JQLNZR3;

1.42



(,5T\JW8^XYJRX'JQLNZR3;

7.23

6.22

CG Electric Systems Hungary Zrt.

0.14

5.25

CG Industrial Holdings Sweden AB

0.03

-

CG Drives and Automation Sweden AB

0.19



102.70



CG International B.V.

Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF7JFQY^1NRNYJI Total

4

12.56

-

1553.12



74.76



Guarantee fees receivable Subsidiaries CG International B.V. CG Power Solutions 1NRNYJI Total

132

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

3.12

-

77.88




` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

50. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) vii) Amount due to / from related parties (Contd.) As at 31-03-2017

As at 31-03-2016

CG Power USA Inc.

5.05

6.60

CG Electric Systems Hungary Zrt.

0.01

0.01

CG Drives and Automation Sweden AB

0.01

0.01

Sr. 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 5

Loans and advances payable Subsidiaries

Other Related Parties 8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI

0.10

0.10

/MFGZF5T\JW1NRNYJI

-

0.75

&[FSYMF7JFQY^1NRNYJI

-



(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI

-

13.76

5.17



Gautam Thapar

0.04



033JJQPFSYM

1.77

-

Madhav Acharya

1.22

-

Omkar Goswami

0.16



-

0.36

B. Harirahan

0.16



8FSOF^1FGWTT

0.12

0.14

Valentin Von Massow

0.38

0.46

Shirish Apte

0.34



7FRSN3NWZQF

0.12

-

Meher Pudumjee

0.01 4.32

0.11 

351.42

601.64

Total 6

Due to Key Management Personnel

(TQJYYJ1J\NSJW

Total 7

Guarantees outstanding Subsidiaries CG International B.V.

-



CG Electric Systems Hungary Zrt.

248.05

162.06

(,5T\JW8^XYJRX'JQLNZR3;

-

26.31

(,-TQINSLX'JQLNZR3;

-



CG Power USA Inc.

229.41

74.53

(,5T\JW8TQZYNTSX1NRNYJI

179.00

-

CG Middle East FZE

Joint Venture PT Crompton Prima Switchgear Indonesia Total

23.88

-

1031.76



2016-17

2015-16

10.38

16.24

0.25



-



viii) Compensation of key management personnel of the Company

3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU Short-term employee benefits 5TXYJRUQT^RJSYUJSXNTSUWT[NIJSYKZSIFSIRJINHFQGJSJĂ YX 9JWRNSFYNTSGJSJĂ YX (TRRNXXNTSFSITYMJWGJSJĂ YXUFNIYTSTSJ]JHZYN[JNSIJUJSIJSYINWJHYTWX Total compensation paid to key management personnel

1.43



12.06



The transactions with related parties are made on terms equivalent to those that prevail in armâ&#x20AC;&#x2122;s length transactions. This assessment is undertaken each Ă SFSHNFQ^JFWYMWTZLMJ]FRNSNSLYMJĂ SFSHNFQUTXNYNTSTKYMJWJQFYJIUFWY^FSIYMJRFWPJYNS\MNHMYMJWJQFYJIUFWY^TUJWFYJX4ZYXYFSINSLGFQFSHJXFYYMJ year-end are unsecured and settlement occurs in cash.

FINANCIALS

133


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

51. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 105 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS Automation Systems 

9MJ'TFWITK)NWJHYTWXTKYMJ(TRUFS^[NIJWJXTQZYNTSIFYJIYM3T[JRGJWFHHJUYJIFSTKKJWKTWYMJXFQJTK(TRUFS^¸X''&ZYTRFYNTSGZXNSJXX .SINFS GZXNSJXXKWTR&QKFSFW*QJHYWNH8^XYJRX(TRUFS^ ¾&QKFSFWœTKYMJ0NSLITRTK8FZIN&WFGNF&QKFSFWNXFRFOTWUQF^JWNSYMJJQJHYWNHFQRFSZKFHZWNSLGZXNSJXX including the manufacturing of electrical construction products as well as related engineering services.



(TSXJVZJSYQ^(,NSHTWUTWFYJITSYM3T[JRGJWF\MTQQ^T\SJIXZGXNINFW^FXUJHNFQUZWUTXJ[JMNHQJ?.;&ZYTRFYNTS.SINF1NRNYJI Âľ?.;Âś*KKJHYN[J XY/FSZFW^YMJ(TRUFS^YWFSXKJWWJINYXFZYTRFYNTSGZXNSJXXNS.SINFYT?.;ZSIJWXQZRUXFQJFLWJJRJSYFLFNSXYXMFWJXNXXZJIG^?.; Subsequently, on 6th March, 2017, CGâ&#x20AC;&#x2122;s entire investment in ZIV was sold to Alfanar at ` 31.71 crore, pursuant to an agreement between CG and Alfanar. Thus, ZIV ceased to be subsidiary company of CG w.e.f. 6th March, 2017. The Discontinued operations have been disclosed as â&#x20AC;&#x153;Automation Systemsâ&#x20AC;? segment separately. Consumer Products The Company demerged its Consumer products business unit into a separate company (wholly owned subsidiary of CG till 23rd March, 2016), Crompton Greaves (TSXZRJW*QJHYWNHFQX1NRNYJI Âľ(,(*1Âś\NYMJKKJHYKWTRXY4HYTGJW+TWYMJ^JFWJSIJIXY2FWHMWJXZQYXZUYTYM8JUYJRGJWMF[JGJJS UWJXJSYJIZSIJWUWTĂ YTWQTXXKWTRINXHTSYNSZJITUJWFYNTSX The Discontinued operations have been disclosed as â&#x20AC;&#x153;Consumer Productsâ&#x20AC;? segment separately. Power Distribution



4S XY /ZSJ  YMJ (TRUFS^ MFI JSYJWJI NSYT 5T\JW )NXYWNGZYNTS +WFSHMNXJ &LWJJRJSY ¡)+&¸ \NYM 2FMFWFXMYWF 8YFYJ *QJHYWNHNY^ )NXYWNGZYNTS (TRUFS^ 1NRNYJI ¡28*)(1¸KTWINXYWNGZYNTSTKUT\JWNS/FQLFTSWJLNTSTK2FMFWFXMYWF.SINF



&XUJWYMJYJWRXTKYMJFWWFSLJRJSYXYMJ(TRUFS^MFITGYFNSJIYMJWNLMY ¡KWFSHMNXJ¸YTINXYWNGZYJYMJJQJHYWNHNY^KTWYMJUJWNTITK^JFWXYTYMJUZGQNHFYQFWLJ



28*)(1XMFQQXZUUQ^XFQJJQJHYWNHNY^YTYMJ(TRUFS^FYWFYJUWJXHWNGJIZSIJWWJLZQFYTW^LZNIJQNSJX 2*7(INWJHYN[JXTSQTFIXMJIINSL9MJ(TRUFS^XMFQQ distribute and supply the electricity at the tariff determined by the regulatory authorities. The Company shall conduct normal maintenance activities of network and other assets to maintain uninterrupted service. The Company is a private operator and 28*)(1NXF,T[JWSRJSYGTI^9MJ(TRUFS^ZSIJWYFPJXTGQNLFYNTSTKUZGQNHXJW[NHJLWFSYJIG^28*)(19MZXYMJFWWFSLJRJSYNXFUZGQNHYTUWN[FYJXJW[NHJ HTSHJXXNTS9MJJQJHYWNHNY^INXYWNGZYNTSXJW[NHJNXYTYFQQ^WJLZQFYJIG^YMJ28*)(1TWTYMJW,T[JWSRJSYWJLZQFYTW^FZYMTWNYNJX



28*)(1MFILN[JSWNLMYYTYMJ(TRUFS^YTZXJNYXINXYWNGZYNTSFXXJYX\MNHM\NQQFQ\F^XGJQTSLYT28*)(1)ZWNSLYMJYJSZWJTKYMJFWWFSLJRJSYNKYMJ(TRUFS^ NSHZWXFS^HFUNYFQJ]UJSINYZWJYMJXFRJXMFQQ[JXY\NYM28*)(1FYYMJJSITKYMJHTSYWFHY28*)(1XMFQQWJNRGZWXJYMJ(TRUFS^KTWYMJHFUNYFQJ]UJSINYZWJ NSHZWWJIFYYMJYMJS[FQZJHFQHZQFYJIGFXJITSUWJIJYJWRNSJIIJUWJHNFYNTSWFYJ9MZX28*)(1HTSYWTQXXNLSNĂ HFSYWJXNIZFQNSYJWJXYNSYMJHTSHJXXNTSFXXJYX &HHTWINSLQ^YMJ(TRUFS^MFIFHTSYWFHYZFQWNLMYYTWJHJN[JHFXMKWTR28*)(1KTWYMJHFUNYFQJ]UJSINYZWJNSHZWWJI



9MJWJKTWJYMJFWWFSLJRJSYNXF8JW[NHJHTSHJXXNTSFWWFSLJRJSYZSIJW&UUJSIN]&YT.SI&89MJ(TRUFS^MFIFHTSYWFHYZFQWNLMYYTWJHJN[JYMJWJXNIZFQ [FQZJ TK YMJ HFUNYFQ J]UJSINYZWJ ITSJ ZSIJW YMJ FWWFSLJRJSY FSI FHHTWINSLQ^ \NQQ WJHTLSNXJ Ă SFSHNFQ FXXJY +ZWYMJW YMJ (TRUFS^ MFI WNLMY YT HMFWLJ YMJ consumers for the services and therefore, there was an intangible asset. The revenues and losses in respect of Service Concession Arrangements recognised during the year are as follows: ` crore

Revenue from operations Other Income Total (A) Expenses related to Power distribution business Material Cost 4YMJWJ]UJSXJ *RUQT^JJGJSJĂ YXJ]UJSXJX Amortisation of intangible assets Total (B) Loss before tax recognised during the period (C)= (A)-(B)

2016-17

2015-16

-

160.53 6.70 167.23

27.72 27.72

 7.43 2.50 1.11 

(27.72)

( 27.14)

Consequent to the certain unresolved disputes arising out of the Distribution Franchisee Agreement (DFA) of the Company with Maharashtra State Electricity )NXYWNGZYNTS (TRUFS^ 1NRNYJI 28*)(1 FY /FQLFTS NS 2FMFWFXMYWF 28*)(1 MFI J]JWHNXJI NYX XYJU NS WNLMYX FSI YFPJS T[JW YMJ )NXYWNGZYNTS +WFSHMNXJJ NS /FQLFTSKWTRYMJ(TRUFS^\NYMJKKJHYKWTRYM&ZLZXY&HHTWINSLQ^YMJ(TRUFS^MFXHQFXXNĂ JI5T\JW)NXYWNGZYNTS8JLRJSYFXINXHTSYNSZJITUJWFYNTSX 

9MJ(TRUFS^FSI28*)(1MF[JWFNXJIIJRFSITSJFHMTYMJWFSIYMJRFYYJWNXZSIJWINXUZYJ9MJ(TRUFS^FSI28*)(1FWJNSYMJUWTHJXXTKHTSXYNYZYNSLF 5JWRFSJSY)NXUZYJ7JXTQZYNTS'TI^ 5)7'YTFWWN[JFYFXTQZYNTSNSSJFWKZYZWJ9MJ(TRUFS^ITJXSTYJ]UJHYFS^FI[JWXJNRUFHY\NYMWJXUJHYYTFGT[J :[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZVM[OLKPZJVU[PU\LKVWLYH[PVUZ: ` crore 2016-17

Revenue from operations *]UJSXJX SJYTKTYMJWNSHTRJ 5WTĂ Y QTXXGJKTWJYF] 9F]NSHTRJ J]UJSXJ 1TXXTSIJRJWLJWTK&ZYTRFYNTS'ZXNSJXX SJYTKYF]J]UJSXJ`3NQ 5WTĂ Y QTXXFKYJWYF]KWTRINXHTSYNSZJI operations

134

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

2015-16

Automation Systems

Power Distribution

Total

Automation Systems

Consumer Products

Power Distribution

Total

51.01 49.41 1.60 1.60

27.72 (27.72) (27.72)

51.01 77.13 (26.12) (26.12)

  (10.77) (10.77)

 1644.37    123.33

160.53  (27.14) (0.03) (27.17)

2071.13  146.70 (61.31) 

7.15

-

7.15

-

-

-

-

(5.55)

(27.72)

(33.27)

(10.77)

123.33

(27.17)




` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

51. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 105 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Contd.) The major classes of assets and liabilities of the discontinued operations are as under: As at 31-03-2017

As at 31-12-2016

As at 31-03-2016

As at 

Power Distribution

Automation Systems

Power Distribution

Consumer Products



Assets Property, plant and equipment

-

5.96

-

Other intangible assets

-

3.09

23.64

3.50

Intangible assets under development

-

1.01

-



3TSHZWWJSYĂ SFSHNFQFXXJYXQTFSXTYMJWX

-

0.97

7.32

10.73

0.10

12.09

0.10



130.90

24.44



430.61

0.03

0.35

0.14

3.23

-

0.45

0.02

21.47

29.60 160.63

1.66 50.02

31.21



251.60



Borrowings

-

-

-

570.46

)JKJWWJIYF]QNFGNQNY^

-

-

-

0.62

Other non-current liability

-

-

-



0.69

7.82





-

1.24

-



0.29 0.98

2.10 11.16



32.26

30.10

1364.35

159.65

38.86

221.50

(652.53)

Inventories Trade receivables Cash and cash equivalents (ZWWJSYĂ SFSHNFQFXXJYXQTFSX Other current assets (ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSL( Liabilities

Trade payables Other current liabilities Provisions 3PHIPSP[PLZKPYLJ[S`HZZVJPH[LK^P[OHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSL) Net assets / (liabilities) directly associated with disposal group (A-B)

5L[JHZOĂ&#x192;V^ZH[[YPI\[HISL[V[OLVWLYH[PUNPU]LZ[PUNHUKĂ&#x201A;UHUJPUNHJ[P]P[PLZVMKPZJVU[PU\LKVWLYH[PVUZ!

2016-17

2015-16

Operating

(29.71)



Investing

24.46



-

(27.10)

2016-17

2015-16

(9.12)

-

Cash Flows

Financing

52. EXCEPTIONAL ITEMS Particulars &RTZSYUFNIYT\FWIX8FQJXYF]&RSJXY^XHMJRJ &RTZSYUFNIYT\FWIXĂ SFQXJYYQJRJSYTKQNYNLFYNTSHQFNRX

(20.00)

-

:SWJFQNXJIJ]HMFSLJLFNS QTXXTSQTFSXFSIFI[FSHJX

(70.68)

57.02

5WTĂ YTSXFQJTKUTWYNTSTKQFSIFY0FSOZWRFWL2ZRGFN

-

246.30

1NVZNIFYNTSTKNS[JXYRJSYNSXZGXNINFW^HTRUFS^(WTRUYTS,WJF[JX-TQINSLX2FZWNYNZX1NRNYJI

-

31.63

5WTĂ YTSXFQJTKNS[JXYRJSYNSOTNSY[JSYZWJ(,1ZH^8\NYHMLJFW1NRNYJI

-



5WT[NXNTSRFIJFLFNSXYQTFSLN[JSYTXZGXNINFWNJXSJYTKJ]HMFSLJLFNS

-



Provision made against investment in subsidiaries

-



Compensation to employees pursuant to voluntary retirement scheme

-

(1.23)

One time payment to former CEO & Managing Director

-

 

(99.80)

(1451.71)

Total

FINANCIALS

135


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

53. EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY (CSR) 

9MJUFWYNHZQFWXTK(87J]UJSINYZWJFWJFXKTQQT\X (a) Gross amount required to be spent by the company during the year is `HWTWJ 5WJ[NTZX^JFW` 13.10 crore) (b) Amount spent during the year on : Sr. 3T Particulars (i)

Construction / acquisition of asset

(ii)

On purposes other than (i) above

In cash

>JYYTGJUFNI in cash

-

-

-



-



Total

(c) Out of the above, the Company has paid ` 0.65 crore (Previous year ` 6.00 crore) to Avantha Foundation towards CSR activities. 9MJUWTĂ YFYYWNGZYFGQJYTYMJIJRJWLJIHTSXZRJWGZXNSJXXTKYMJ(TRUFS^MFXGJJSJ]HQZIJIYTFWWN[JFYYMJF[JWFLJSJYUWTĂ YXTKYMJUFXYYMWJJĂ SFSHNFQ^JFWX KTWHFQHZQFYNSLYMJ(87TGQNLFYNTSTKYMJ(TRUFS^KTWĂ SFSHNFQ^JFW 54. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS 

9MJKFNW[FQZJXTKYMJĂ SFSHNFQFXXJYXFSIQNFGNQNYNJXFWJNSHQZIJIFYYMJFRTZSYFY\MNHMYMJNSXYWZRJSYHTZQIGJJ]HMFSLJINSFHZWWJSYYWFSXFHYNTSGJY\JJS\NQQNSL parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values: 1.

Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and TYMJWĂ SFSHNFQNSXYNYZYNTSXFUUWT]NRFYJYMJNWHFWW^NSLFRTZSYXQFWLJQ^IZJYTYMJXMTWYYJWRRFYZWNYNJXTKYMJXJNSXYWZRJSYX

 +NSFSHNFQNSXYWZRJSYX\NYMĂ ]JIFSI[FWNFGQJNSYJWJXYWFYJXFWJJ[FQZFYJIG^YMJ(TRUFS^GFXJITSUFWFRJYJWXXZHMFXNSYJWJXYWFYJXFSINSIN[NIZFQHWJINY \TWYMNSJXXTKYMJHTZSYJWUFWY^'FXJITSYMNXJ[FQZFYNTSFQQT\FSHJXFWJYFPJSYTFHHTZSYKTWYMJJ]UJHYJIQTXXJXTKYMJXJWJHJN[FGQJX 

9MJ(TRUFS^ZXJXYMJKTQQT\NSLMNJWFWHM^KTWIJYJWRNSNSLFSIINXHQTXNSLYMJKFNW[FQZJTKĂ SFSHNFQNSXYWZRJSYXG^[FQZFYNTSYJHMSNVZJ



1J[JQVZTYJI ZSFIOZXYJIUWNHJXNSFHYN[JRFWPJYXKTWNIJSYNHFQFXXJYXTWQNFGNQNYNJX



1J[JQTYMJWYJHMSNVZJXKTW\MNHMFQQNSUZYX\MNHMMF[JFXNLSNĂ HFSYJKKJHYTSYMJWJHTWIJIKFNW[FQZJFWJTGXJW[FGQJJNYMJWINWJHYQ^TWNSINWJHYQ^



1J[JQYJHMSNVZJX\MNHMZXJNSUZYXYMFYMF[JFXNLSNĂ HFSYJKKJHYTSYMJWJHTWIJIKFNW[FQZJYMFYFWJSTYGFXJITSTGXJW[FGQJRFWPJYIFYF Carrying amount As at 31-03-2017

Fair value 1J[JQ

1J[JQ

1J[JQ

Financial assets at amortised cost: Trade receivables Financial Guarantee fees receivable 1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY

1480.37

-

-

-

77.88

-

-

79.60

6.64

-

-

5.55

1466.97

-

-

-

0.44

0.44

-

-

Cash and bank balances

555.75

-

-

-

Bank deposits

149.03

-

-

-

7.96

-

-

-

3745.04

0.44

-

85.15

1TFSXFSITYMJWWJHJN[FGQJX HZWWJSY Investments

4YMJWĂ SFSHNFQWJHJN[FGQJX Total -PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVĂ&#x201A;[VYSVZZ! Derivative instruments

16.29

-

16.29

-

Investments

41.11

0.98

32.07

8.06

Total

57.40

0.98

48.36

8.06

Financial assets at fair value through other comprehensive income: Investments

151.80

-

-

151.80

Total

151.80

-

-

151.80

Financial liabilities at amortised cost: .SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSX 1TSLYJWRQTFSXKWTRGFSP Short term loans from bank Trade and other payables 4YMJWĂ SFSHNFQQNFGNQNYNJX STSHZWWJSY 4YMJWĂ SFSHNFQQNFGNQNYNJX HZWWJSY Total

136

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

0.12

-

-

-

623.34

-

623.34

-

710.23

-

-

-

1091.33

-

-

0.92

1.10

-

-

135.50

-

-

-

2561.62

-

623.34

0.92


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

54. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS (Contd.) Carrying amount As at 31-03-2016

Fair value 1J[JQ

1J[JQ

1J[JQ

Financial assets at amortised cost: Trade receivables Financial guarantee fees receivable 1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY



-

-

-



-

-

 7.56



-

-

1051.05

-

-

-

0.44

0.44

-

-

Cash and bank balances

512.03

-

-

-

Bank deposits

230.60

-

-

-

1.37

-

-

-

3541.54

0.44

-

101.11

1TFSXFSITYMJWWJHJN[FGQJX HZWWJSY Investments

4YMJWĂ SFSHNFQWJHJN[FGQJX Total -PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVĂ&#x201A;[VYSVZZ!

6.40

-

6.40

-

Investments

Derivative instruments

32.21



23.20



Total









Financial assets at fair value through other comprehensive income: Investments



-

-



Total



-

-

 -

Financial liabilities at amortised cost: .SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSX

0.12

-

-



-

-

-

Finance lease obligations



-

-



Trade and other payables

1047.40

-

-

-

1.21

-

-



144.56

-

-

-



-

-



Short term loans from bank

4YMJWĂ SFSHNFQQNFGNQNYNJX STSHZWWJSY 4YMJWĂ SFSHNFQQNFGNQNYNJX HZWWJSY Total

)ZWNSLYMJWJUTWYNSLUJWNTIJSINSLXY2FWHMFSIXY2FWHMYMJWJ\JWJSTYWFSXKJWXGJY\JJS1J[JQFSI1J[JQKFNW[FQZJRJFXZWJRJSYX +LZJYPW[PVUVMZPNUPĂ&#x201A;JHU[\UVIZLY]HISLPUW\[Z[V]HS\H[PVU! 

9MJKTQQT\NSLYFGQJXMT\XYMJ[FQZFYNTSYJHMSNVZJXFSINSUZYXZXJIKTWĂ SFSHNFQNSXYWZRJSYX As at 31-03-2017



As at 31-03-2016

Financial guarantee fees receivable

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

Investments

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

Derivative Instruments

Based on quotes from Banks and Financial institutions

Finance lease obligations

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

4YMJWĂ SFSHNFQQNFGNQNYNJX STSHZWWJSY

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

9MJKTQQT\NSLYFGQJXMT\XFWJHTSHNQNFYNTSKWTRYMJTUJSNSLGFQFSHJXYTYMJHQTXNSLGFQFSHJXKTW1J[JQKFNW[FQZJX ` crore Balance as at 01-04-2015 Less : Fair value loss recognised in other comprehensive income Balance as at 31-03-2016 Less : Fair value loss recognised in other comprehensive income Balance as at 31-03-2017

227.00    151.80

FINANCIALS

137


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

55. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The (TRUFS^¸Xà SFSHNFQWNXPRFSFLJRJSYNXFSNSYJLWFQUFWYTKMT\YTUQFSFSIJ]JHZYJNYXGZXNSJXXXYWFYJLNJX9MJ(TRUFS^¸Xà SFSHNFQWNXPRFSFLJRJSYUTQNH^ is set by the Managing Board. 

2FWPJYWNXPNXYMJWNXPTKQTXXTKKZYZWJJFWSNSLXKFNW[FQZJXTWKZYZWJHFXMĂ&#x201A;T\XYMFYRF^WJXZQYKWTRFHMFSLJNSYMJUWNHJTKFĂ SFSHNFQNSXYWZRJSY9MJ[FQZJTKF Ă SFSHNFQNSXYWZRJSYRF^HMFSLJFXFWJXZQYTKHMFSLJXNSYMJNSYJWJXYWFYJXKTWJNLSHZWWJSH^J]HMFSLJWFYJXJVZNY^UWNHJXFSITYMJWRFWPJYHMFSLJXYMFYFKKJHY RFWPJYWNXPXJSXNYN[JNSXYWZRJSYX2FWPJYWNXPNXFYYWNGZYFGQJYTFQQRFWPJYWNXPXJSXNYN[JĂ SFSHNFQNSXYWZRJSYXNSHQZINSLNS[JXYRJSYXFSIIJUTXNYXKTWJNLSHZWWJSH^ receivables, payables and loans and borrowings.



9MJ(TRUFS^RFSFLJXRFWPJYWNXPYMWTZLMFYWJFXZW^IJUFWYRJSY\MNHMJ[FQZFYJXFSIJ]JWHNXJXNSIJUJSIJSYHTSYWTQT[JWYMJJSYNWJUWTHJXXTKRFWPJYWNXP management. The corporate treasury department recommends risk management objectives and policies, which are approved by Senior Management and the &ZINY (TRRNYYJJ 9MJ FHYN[NYNJX TK YMNX IJUFWYRJSY NSHQZIJ RFSFLJRJSY TK HFXM WJXTZWHJX NRUQJRJSYNSL MJILNSL XYWFYJLNJX KTW KTWJNLS HZWWJSH^ J]UTXZWJX borrowing strategies, and ensuring compliance with market risk limits and policies. Interest rate risk



.SYJWJXYWFYJWNXPNXYMJWNXPYMFYYMJKFNW[FQZJTWKZYZWJHFXMĂ&#x201A;T\XTKFĂ SFSHNFQNSXYWZRJSY\NQQĂ&#x201A;ZHYZFYJGJHFZXJTKHMFSLJXNSRFWPJYNSYJWJXYWFYJX.STWIJWYT TUYNRN_JYMJ(TRUFS^¸XUTXNYNTS\NYMWJLFWIYTNSYJWJXYNSHTRJFSINSYJWJXYJ]UJSXJXFSIYTRFSFLJYMJNSYJWJXYWFYJWNXPYWJFXZW^UJWKTWRXFHTRUWJMJSXN[J HTWUTWFYJNSYJWJXYWFYJWNXPRFSFLJRJSYG^GFQFSHNSLYMJUWTUTWYNTSTKĂ ]JIWFYJFSIĂ&#x201A;TFYNSLWFYJĂ SFSHNFQNSXYWZRJSYXNSNYXYTYFQUTWYKTQNT Exposure to interest risk

Particulars Floating Rate borrowings

As at 31-03-2017

As at 31-03-2016

665.24

-

Interest rate sensitivity 2016-17

2015-16

25 bps increase - Decrease in profit

(1.66)

-

25 bps decrease - Increase in profit

1.66

-

Particulars

Foreign currency risk 

9MJ (TRUFS^ TUJWFYJX NSYJWSFYNTSFQQ^ FSI UTWYNTS TK YMJ GZXNSJXX NX YWFSXFHYJI NS XJ[JWFQ HZWWJSHNJX FSI HTSXJVZJSYQ^ YMJ (TRUFS^ NX J]UTXJI YT KTWJNLS J]HMFSLJWNXPYMWTZLMNYXXFQJXFSIXJW[NHJXNST[JWXJFXFSIUZWHMFXJXKWTRT[JWXJFXXZUUQNJWXNS[FWNTZXKTWJNLSHZWWJSHNJX



+TWJNLSHZWWJSH^J]HMFSLJWFYJJ]UTXZWJNXUFWYQ^GFQFSHJIG^UZWHMFXNSLTKLTTIXHTRRTINYNJXFSIXJW[NHJXNSYMJWJXUJHYN[JHZWWJSHNJX



9MJ(TRUFS^J[FQZFYJXJ]HMFSLJWFYJJ]UTXZWJFWNXNSLKWTRKTWJNLSHZWWJSH^YWFSXFHYNTSXFSIYMJ(TRUFS^KTQQT\XJXYFGQNXMJIWNXPRFSFLJRJSYUTQNHNJX NSHQZINSLYMJZXJTKIJWN[FYN[JXQNPJKTWJNLSJ]HMFSLJKTW\FWIHTSYWFHYXYTMJILJJ]UTXZWJYTKTWJNLSHZWWJSH^WNXP +TWJNLSHZWWJSH^J]UTXZWJFXFYXY2FWHM

USD

Euro

/5>

CHF

Others

Total

219.29

30.85

-

-

3.19

253.33

1TFSXFSITYMJWWJHJN[FGQJX

1.15

1168.27

-

-

-

1169.42

Bank balances in current accounts and term deposit accounts

0.15

-

-

-

-

0.15

(78.73)

(32.43)

(2.01)

(1.23)

(2.03)

(116.43)

Trade receivables

Trade payables Forward contracts for receivable Forward contracts for loan

+TWJNLSHZWWJSH^J]UTXZWJFXFYXY2FWHM

7.99

-

-

-

-

7.99

-

8.30

-

-

-

8.30

USD

Euro

/5>

CHF

Others

Total



14.41

-

-

-



1TFSXFSITYMJWWJHJN[FGQJX

0.46



-

-

-



Bank balances in current accounts and term deposit accounts

0.02

-

-

-

-

0.02

 

 

(3.06)

(1.01)

 

 

Trade receivables

Trade payables Forward contracts for receivable

7.05

-

-

-

-

7.05

-

(0.66)

-

-

-

(0.66)

 .SHWJFXJ

 IJHWJFXJ

 .SHWJFXJ

USD

0.12

(0.12)

(1.07)

1.07

Euro

10.15

(10.15)





/5>

(0.02)

0.02

(0.03)

0.03

CHF

(0.01)

0.01

(0.01)

0.01

Others

0.01 10.25

(0.01) (10.25)

(0.00) 5.71

0.00 (5.71)

Forward contracts for loan Foreign currency sensitivity

 NSHWJFXJTWIJHWJFXJNSKTWJNLSJ]HMFSLJWFYJX\NQQMF[JYMJKTQQT\NSLNRUFHYTSUWTĂ YGJKTWJYF] 2016-17

Increase / (decrease) in profit or loss

138

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

2015-16  IJHWJFXJ


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

55. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.) Credit risk Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses YMJ Ă SFSHNFQ WJQNFGNQNY^ TK HZXYTRJWX YFPNSL NSYT FHHTZSY YMJ Ă SFSHNFQ HTSINYNTS HZWWJSY JHTSTRNH YWJSIX FSI FSFQ^XNX TK MNXYTWNHFQ GFI IJGYX FSI FLJNSL TK accounts receivable. Individual risk limits are set accordingly. 

9MJ(TRUFS^HTSXNIJWXYMJUWTGFGNQNY^TKIJKFZQYZUTSNSNYNFQWJHTLSNYNTSTKFXXJYFSI\MJYMJWYMJWJMFXGJJSFXNLSNĂ HFSYNSHWJFXJNSHWJINYWNXPTSFSTSLTNSL GFXNXYMWTZLMTZYJFHMWJUTWYNSLUJWNTI9TFXXJXX\MJYMJWYMJWJNXFXNLSNĂ HFSYNSHWJFXJNSHWJINYWNXPYMJHTRUFS^HTRUFWJXYMJWNXPTKFIJKFZQYTHHZWWNSLTS the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as : N

&HYZFQTWJ]UJHYJIXNLSNĂ HFSYFI[JWXJHMFSLJXNSGZXNSJXX

NN &HYZFQTWJ]UJHYJIXNLSNà HFSYHMFSLJXNSYMJTUJWFYNSLWJXZQYXTKYMJHTZSYJWUFWY^ NNN +NSFSHNFQTWJHTSTRNHHTSINYNTSXYMFYFWJJ]UJHYJIYTHFZXJFXNLSNà HFSYHMFSLJYTYMJHTZSYJWUFWY^¸XFGNQNY^YTRJJYNYXTGQNLFYNTSX N[ 8NLSNà HFSYNSHWJFXJXNSHWJINYWNXPTSTYMJWà SFSHNFQNSXYWZRJSYXTKYMJXFRJHTZSYJWUFWY^ [ 8NLSNà HFSYHMFSLJXNSYMJ[FQZJTKYMJHTQQFYJWFQXZUUTWYNSLYMJTGQNLFYNTSTWNSYMJVZFQNY^TKYMNWIUFWY^LZFWFSYJJXTWHWJINYJSMFSHJRJSYX 

+NSFSHNFQFXXJYXFWJ\WNYYJSTKK\MJSYMJWJNXSTWJFXTSFGQJJ]UJHYFYNTSTKWJHT[JW^XZHMFXFIJGYTWKFNQNSLYTJSLFLJNSFWJUF^RJSYUQFS\NYMYMJHTRUFS^9MJ company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are WJHTLSNXJINSUWTĂ YTWQTXX *]UTXZWJYTHWJINYWNXP

As at 31-03-2017

As at 31-03-2016

0.44

0.44

Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL) Investments in Government or trust securities Investments in Debentures or bonds Other non-current investments

8.05



27.83

23.20

1TSLYJWRQTFSXFSIFI[FSHJX

6.64



4YMJWQTSLYJWRĂ SFSHNFQFXXJYX

46.89

44.57

Cash and bank balances

555.75

512.03

4YMJWXMTWYYJWRĂ SFSHNFQFXXJYX

204.27



Short-term loans and advances

1466.97

1051.05

1572.22



Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL) Trade receivables Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks. The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due. ` crore As at 31-03-2017 Up to 3 months



3 to 6 months

135.67

More than 6 months

507.11 1572.22

As at 31-03-2016 Up to 3 months 3 to 6 months More than 6 months

1111.42 141.01  

FINANCIALS

139


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

55. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.) 9MJKTQQT\NSLYFGQJXZRRFWN_JXYMJHMFSLJNSYMJQTXXFQQT\FSHJXRJFXZWJIZXNSLQNKJYNRJJ]UJHYJIHWJINYQTXXRTIJQ ` crore As at 1-04-2015

157.77

Provided during the year



Amounts written off

(7.23)

Reversals of provision

(5.15)  

Transfer to discontinued operations

 

Unwinding of discount

122.29

As at 31-03-2016



Provided during the year Amounts written off

(31.61)

Reversals of provision

 

Transfer to discontinued operations

(0.11)

Unwinding of discount

(6.74)

As at 31-03-2017

91.85

During the year 2015-16 the Company had recognised loss allowance of `HWTWJXZSIJWRTSYMXJ]UJHYJIHWJINYQTXXRTIJQ 3TXNLSNĂ HFSYHMFSLJXNSJXYNRFYNTSYJHMSNVZJXTWFXXZRUYNTSX\JWJRFIJIZWNSLYMJWJUTWYNSLUJWNTI Liquidity risk 

1NVZNINY^WNXPNXIJĂ SJIFXYMJWNXPYMFYYMJ(TRUFS^\NQQSTYGJFGQJYTXJYYQJTWRJJYNYXTGQNLFYNTSXTSYNRJTWFYFWJFXTSFGQJUWNHJ9MJ(TRUFS^¸XYWJFXZW^ department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior RFSFLJRJSY2FSFLJRJSYRTSNYTWXYMJ(TRUFS^¸XSJYQNVZNINY^UTXNYNTSYMWTZLMWTQQNSLKTWJHFXYXTSYMJGFXNXTKJ]UJHYJIHFXMĂ&#x201A;T\X



2FYZWNY^UWTĂ QJTKĂ SFSHNFQQNFGNQNYNJX



9MJYFGQJGJQT\UWT[NIJXIJYFNQXWJLFWINSLYMJWJRFNSNSLHTSYWFHYZFQRFYZWNYNJXTKĂ SFSHNFQQNFGNQNYNJXFYYMJWJUTWYNSLIFYJGFXJITSHTSYWFHYZFQZSINXHTZSYJI payments. 1JXXYMFS 1 year

1 to 5 years

Total

0.12

-

0.12

Finance lease obligation

-

-

-

Deposits payable

-

1.10

1.10

1TSLYJWRGTWWT\NSLX

119.74

545.50

665.24

Short-term borrowings

710.23

-

710.23

1091.33

-

1091.33

135.50

-

135.50

1JXXYMFS 1 year

1 to 5 years

Total

.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY

0.12

-

0.12

Finance lease obligation







-

1.21

1.21



-



1047.40

-

1047.40

144.56

-

144.56

As at 31-03-2017 .SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY

Trade payables 4YMJWĂ SFSHNFQQNFGNQNYNJX

As at 31-03-2016

Deposits payable Short-term borrowings Trade payables 4YMJWĂ SFSHNFQQNFGNQNYNJX Capital management

For the purposes of the Companyâ&#x20AC;&#x2122;s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Companyâ&#x20AC;&#x2122;s (FUNYFQ2FSFLJRJSYNXYTRF]NRNXJXMFWJMTQIJW[FQZJ9MJHTRUFS^RFSFLJXNYXHFUNYFQXYWZHYZWJFSIRFPJXFIOZXYRJSYXNSYMJQNLMYTKHMFSLJXNSJHTSTRNH JS[NWTSRJSYFSIYMJWJVZNWJRJSYXTKYMJĂ SFSHNFQHT[JSFSYX The company monitors capital using gearing ratio, which is total debt divided by total capital plus debt. As at 31-03-2017

140

As at 31-03-2016

Total debt

1333.69



Equity

4199.29



Capital and net debt

5532.98

4714.22

Gearing ratio

24.10%



CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

56. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 33 EARNINGS PER SHARE Particulars Face value of equity share Weighted average number of equity shares outstanding Profit / (loss) for the year (continuing operations) Weighted average earnings per share (basic and diluted) Profit / (loss) for the year (discontinued operations) Weighted average earnings per share (basic and diluted) Profit / (loss) for the year (total operations) Weighted average earnings per share (basic and diluted)

2016-17

2015-16

`

2.00

2.00

3TX

626746142

626746142

` crore

157.73



`

2.52



` crore

(33.27)



`

(0.53)

1.36

` crore

124.46



`

1.99

(17.53)

57. PARTICULARS IN RESPECT OF LOANS AND ADVANCES IN THE NATURE OF LOANS AS REQUIRED BY REGULATION 53(F) READ WITH PARA A OF SCHEDULE V OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 Balance as at 3FRJTKYMJ(TRUFS^

31-03-2017

Maximum outstanding during

31-03-2016

2016-17

2015-16

(a) Loans and advances in the nature of loans given to subsidiaries (,5T\JW8TQZYNTSX1NRNYJI

198.66



909.18



CG International B.V.

859.86

614.61

917.62

1543.31

0.65

-

0.68

-

859.86

614.61

917.62

1543.31

(,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI (b) Loans and advances in the nature of loans where repayment schedule is not specified CG International B.V.

58. DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013. 

1TFSXLN[JSFSINS[JXYRJSYXRFIJFWJLN[JSZSIJWYMJWJXUJHYN[JMJFIX Corporate guarantees given by the Company in respect of loans:

3FRJTKYMJ(TRUFS^ CG International B.V. CG Middle East FZE

As at 31-03-2017

As at 31-03-2016

351.42

601.64

-



CG Electric Systems Hungary Zrt.

248.05

162.06

(,5T\JW8^XYJRX'JQLNZR3;

-

26.31

(,-TQINSLX'JQLNZR3;

-



229.41

74.53

23.88

-

CG Power USA Inc. PT Crompton Prima Switchgear Indonesia (,5T\JW8TQZYNTSX1NRNYJI

179.00

-

1031.76



FINANCIALS

141


` crore

NOTES

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

59. STANDARDS ISSUED BUT NOT YET EFFECTIVE In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind &8¡8YFYJRJSYTKHFXMĂ&#x201A;T\X¸FSI.SI&8¡8MFWJGFXJIUF^RJSY¸9MJFRJSIRJSYXFWJFUUQNHFGQJYTYMJ(TRUFS^KWTR&UWNQ Amendment to Ind AS 7: 9MJFRJSIRJSYYT.SI&8WJVZNWJXYMJJSYNYNJXYTUWT[NIJINXHQTXZWJXYMFYJSFGQJZXJWXTKĂ SFSHNFQXYFYJRJSYXYTJ[FQZFYJHMFSLJXNSQNFGNQNYNJXFWNXNSLKWTR Ă SFSHNSLFHYN[NYNJXNSHQZINSLGTYMHMFSLJXFWNXNSLKWTRHFXMĂ&#x201A;T\XFSISTSHFXMHMFSLJXXZLLJXYNSLNSHQZXNTSTKFWJHTSHNQNFYNTSGJY\JJSYMJTUJSNSLFSI HQTXNSLGFQFSHJXNSYMJGFQFSHJXMJJYKTWQNFGNQNYNJXFWNXNSLKWTRĂ SFSHNSLFHYN[NYNJXYTRJJYYMJINXHQTXZWJWJVZNWJRJSY 9MJ(TRUFS^NXJ[FQZFYNSLYMJWJVZNWJRJSYXTKYMJFRJSIRJSYFSIYMJJKKJHYTSYMJĂ SFSHNFQXYFYJRJSYX Amendment to Ind AS 102: 9MJFRJSIRJSYYT.SI&8UWT[NIJXXUJHNĂ HLZNIFSHJYTRJFXZWJRJSYTKHFXMXJYYQJIF\FWIXRTINĂ HFYNTSTKHFXMXJYYQJIF\FWIXFSIF\FWIXYMFYNSHQZIJ FSJYXJYYQJRJSYKJFYZWJNSWJXUJHYTK\NYMMTQINSLYF]JX Currently Ind AS 102 is not applicable to the company and hence there is no impact. 60. Amounts shown as 0.00 represents amount below ` 50,000 (Rupees Fifty Thousand). 61. Figures for the previous year have been regrouped wherever necessary.

142

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

by the hand of

by the hand of

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


FINANCIALS

143

(,55.&IMJXN[J5WTIZHYX1NRNYJI (,5T\JW8TQZYNTSX1NRNYJI (WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF 8)3'-) (WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI CG International B.V. (,-TQINSLX'JQLNZR3; (,5T\JW8^XYJRX'JQLNZR3; (,5T\JW8^XYJRX.WJQFSI1NRNYJI (,8FQJX3JY\TWPX+WFSHJ8& CG Power Systems Canada Inc. PT. CG Power Systems Indonesia (,,FS_,JSJWFYTWFSI2TYTW11( KTWRJWQ^(,-TQINSLX-ZSLFW^0KY CG Electric Systems Hungary Zrt. CG Service Systems France SAS CG Power USA Inc (,5T\JW8TQZYNTSX:01NRNYJI (,5T\JW8^XYJRX'WF_NQ19)& (,5T\JW8TQZYNTSX8FZIN&WFGNF1NRNYJI (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ59*1NRNYJI CG Industrial Holdings Sweden AB CG Drives and Automation Sweden AB (,)WN[JXFSI&ZYTRFYNTS3JYMJWQFSIX'; CG Middle East FZE CG Drives and Automation Germany GmbH ?.;&UQNHFHNTSJX^9JHSTQTLNF81: ?.;2JYJWNSL8TQZYNTSX81: ?.;,WNI&ZYTRFYNTS81: ZIV Communications S.A.U ?.;)T'WF_NQ1YIF ?.;.)8RFWY*SJWL^3JY\TWPX ZIV France SASU (,5T\JW&ZYTRFYNTS1NRNYJI (,&ZYTRFYNTS8^XYJRX:01NRNYJI ?.;&ZYTRFYNTS.SINF1NRNYJI 16-Oct-06 /ZS 13-May-05 01-Apr-10 26-Oct-10 21-Dec-10 /ZS /ZS /ZS /ZS 14-Apr-13 /ZS /ZQ /ZQ /ZQ /ZQ /ZQ /ZQ 3T[ 8JU 2F^ 3T[

Name of the subsidiaries which are yet to commence the business

(,-TQINSLX&RJWNHFX11(

6*.11(

(,5T\JW&RJWNHFX11( KTWRJWQ^'WF[NS11(

(,8TQZYNTSX&RJWNHFX11(









Notes:

1

31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Dec-16 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17* 06-Mar-17*

EUR EUR USD GBP 7*&1 SAR EUR 8*0 8*0 EUR EUR EUR EUR EUR EUR EUR 7*&1 EUR EUR EUR GBP .37

.37 EUR EUR EUR EUR EUR CAD USD EUR

8JU 01-Apr-05 13-May-05 13-May-05 13-May-05 13-May-05 13-May-05 13-May-05 26-Sep-06 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17 31-Mar-17

.37 .37 2>7

3T[ 31-Mar-17 14-Mar-12 31-Mar-17 30-Sep-13 31-Mar-17

* Subsidiaries sold during the year on 6th March, 2017.

13 14 15 16 17   20 21 22 23 24 25 26 27   30 31 32 33 34

4 5 6 7   10 11 12

1 2 3  713.66 673.70 667.11 26.12 0.32 133.62  27.13

 0.05 0.30

  

Total Total Assets 1NFGNQNYNJX

12.26 21.25 (150.14) 533.26  7.06

Reserves

-    (6.77)  23.60  (15.43)  -   0.74 (17.67) 103.47   226.61 (1.07)  175.34 312.57 15.05  102.41   36.06 -

 13.03       4.73 100.24  -

(3.15) 0.05 0.02 -    1251.14 -    -    61.50 124.76   6.36 11.44 4.76     44.17 -      47.33

-

Equity Preference Share Share Capital Capital

Capital

 32.56  5.54  20.10  0.00       7.27 101.73 7.27   4.12  1.43            1.00 -

1.00        

1.00 1.00 14.64

Date of Reporting Reporting Closing Acquisition / year of the Currency *]HMFSLJ Incorporation subsidiary Rate ended on

FOR THE YEAR ENDED 31ST MARCH, 2017

Part â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122; : Subsidiaries

4.14 -

-

314.11 -

- (72.27) 0.00 (4.45)     -   (0.43) 2.44 (5.14) (2.20) (3.15) 2.63  0.27  - 101.02 0.22 0.70 - (12.52) -  - (16.12) 0.03   1.03 - (10.63) (2.62) (0.46) (0.05) 0.13

(72.27) (4.45) (141.53)   2.01 (5.14) (2.20) (3.15) 14.57 1.26 101.02  (12.52)  (16.12) 3.12  1.03 (10.63) (2.62) (0.46) 

  1073.36 16.64 0.47  0.01    106.64     10.76  4.60 10.32  

1.25 (72.57) 2.04

(0.02) -   -  - (23.57)      0.61 (4.36)  73.73 0.05 1.02

0.72 0.32

(0.02) 31.57   623.50   (23.57)    15.20  1.02 (4.36) 766.13  1.41 1.07

20.20   (72.57)  2.36

-

-

-

India India Malaysia

Country

` crore



Hungary 

France 

USA  :SNYJI0NSLITR 

Brazil 

Saudi Arabia 

Singapore 

Sweden 

Sweden  9MJ3JYMJWQFSIX 

UAE 

Germany 

Spain 

Spain 

Spain 

Spain 

Brazil 

Spain 

France 

Ireland  :SNYJI0NSLITR 

India



India  9MJ3JYMJWQFSIX 

Belgium 

Belgium 

Ireland 

France 

Canada 

Indonesia 

Hungary







Investment Turnover 5WTĂ Y Provision 5WTĂ Y Proposed

TK J]HJUY (including before for after dividend Shareholding investments Other YF]FYNTS YF]FYNTS YF]FYNTS in income) subsidiaries)

:[H[LTLU[JVU[HPUPUNZHSPLU[MLH[\YLZVM[OLĂ&#x201A;UHUJPHSZ[H[LTLU[VM:\IZPKPHYPLZ(ZZVJPH[L*VTWHUPLZ1VPU[=LU[\YLZ

INFORMATION IN RESPECT OF SUBSIDIARY COMPANIES

Sr. 3FRJTK8ZGXNINFW^ 3T

Form AOC-I 7\YZ\HU[[VĂ&#x201A;YZ[WYV]PZV[VZ\IZLJ[PVUVMZLJ[PVU YLHK^P[OY\SLVM*VTWHUPLZ(JJV\U[Z9\SLZ


144

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

?.;&UQNHFHNTSJX^9JHSTQTLNF81:

?.;2JYJWNSL8TQZYNTSX81:

?.;,WNI&ZYTRFYNTS81:







?.;.)8RFWY*SJWL^3JY\TWPX



(,5T\JW8^XYJRX'WF_NQ1YIF

Name of the subsidiaries which have been demerged during the year

3NQ



3



3J\)JQMNYM2F^

K.N.Neelkant CEO & MANAGING DIRECTOR DIN: 05122610

(,5T\JW&ZYTRFYNTS1NRNYJI.WJQFSI



Madhav Acharya EXECUTIVE DIRECTOR - FINANCE & CFO DIN: 02787445

?.;3TWYM&RJWNHF11(



ZIV France SASU

?.;)T'WF_NQ1YIF



ZIV Communications S.A.U

(,&ZYTRFYNTS8^XYJRX:01NRNYJI



ZIV Automation India 1NRNYJI

Name of the subsidiaries which have been liquidated or sold during the year

Manoj Koul COMPANY SECRETARY

FOR THE YEAR ENDED 31ST MARCH, 2017 (Contd.)

Part â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122; : Subsidiaries

Gautam Thapar CHAIRMAN DIN: 00012289

:[H[LTLU[JVU[HPUPUNZHSPLU[MLH[\YLZVM[OLÃ&#x201A;UHUJPHSZ[H[LTLU[VM:\IZPKPHYPLZ(ZZVJPH[L*VTWHUPLZ1VPU[=LU[\YLZ

INFORMATION IN RESPECT OF SUBSIDIARY COMPANIES

2

Form AOC-I 7\YZ\HU[[VÃ&#x201A;YZ[WYV]PZV[VZ\IZLJ[PVUVMZLJ[PVU YLHK^P[OY\SLVM*VTWHUPLZ(JJV\U[Z9\SLZ


FINANCIALS

145

31-Mar-17

Joint Venture PT Crompton Prima Switchgear Indonesia

3J\)JQMNYM2F^

Madhav Acharya EXECUTIVE DIRECTOR - FINANCE & CFO DIN: 02787445

K.N.Neelkant CEO & MANAGING DIRECTOR DIN: 05122610

Notes:  3FRJTKYMJFXXTHNFYJX\MNHMFWJ^JYYTHTRRJSHJYMJGZXNSJXX3.1  3FRJTKYMJFXXTHNFYJX\MNHMMF[JGJJSQNVZNIFYJITWXTQIIZWNSLYMJ^JFW3.1

(FWW^NSLFRTZSYTKNS[JXYRJSYXNSYMJXJFXXTHNFYJXMF[JGJJSWJIZHJIYTSNQ

1

3264

3&

12-May-14

3&

31-Mar-17

(,.SYJWSFYNTSFQ';9W (TSY5[Y(T11( 13-May-05 (formerly Pauwels Middle East Tr. & Cont. 5[Y(T11( 00*Q+N/FUFS /ZS

2

3

245

31-Dec-15

21-Dec-10



Description of How there NXXNLSNĂ HFSY NSĂ&#x201A;ZJSHJ

 Control of more YMFS TKYTYFQ share capital

 Control of more YMFS TKYTYFQ share capital  Control of more YMFS TKYTYFQ share capital  Control of more YMFS TKYTYFQ share capital

*]YJSYTK -TQINSL

Manoj Koul COMPANY SECRETARY



3&

0.42*

24.64*

Share of Associates held by company on the year end 3ZRGJWTK Amount of Shares held Investment in Associates and /TNSY;JSYZWJ

8FZIN5T\JW9WFSXKTWRJWX(T1NRNYJI

Associates

1FYJXY&ZINYJI Balance Sheet Date

1

Date of Acquisition / Incorporation

Reason why the Associate is not consolidated



-

(0.06)

 

3JY\TWYM attributable to shareholding as per latest audited balance sheet

Gautam Thapar CHAIRMAN DIN: 00012289

Do not control the composition of Board of )NWJHYTWXFSIITSTYJ]HJWHNXJXFSIHTSYWTQ more than one-half of total share capital

Do not control the composition of Board of )NWJHYTWXFSIITSTYJ]HJWHNXJXFSIHTSYWTQ more than one-half of total share capital Do not control the composition of Board of )NWJHYTWXFSIITSTYJ]HJWHNXJXFSIHTSYWTQ more than one-half of total share capital Do not control the composition of Board of )NWJHYTWXFSIITSTYJ]HJWHNXJXFSIHTSYWTQ more than one-half of total share capital

FOR THE YEAR ENDED 31ST MARCH, 2017

Part â&#x20AC;&#x2DC;Bâ&#x20AC;&#x2122; : Associates and Joint Ventures

:[H[LTLU[JVU[HPUPUNZHSPLU[MLH[\YLZVM[OLĂ&#x201A;UHUJPHSZ[H[LTLU[VM:\IZPKPHYPLZ(ZZVJPH[L*VTWHUPLZ1VPU[=LU[\YLZ

INFORMATION IN RESPECT OF ASSOCIATE COMPANIES AND JOINT VENTURES

Sr. 3FRJTK&XXTHNFYJ/TNSY;JSYZWJ 3T

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(1.57)

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Considered in Consolidation

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3TY considered in Consolidation

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FINANCIALS CONSOLIDATED

146 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CG POWER AND INDUSTRIAL SOLUTIONS LIMITED (FORMERLY KNOWN AS CROMPTON GREAVES LIMITED) Report on the Consolidated Financial Statements <J MF[J FZINYJI YMJ FHHTRUFS^NSL HTSXTQNIFYJI ÁSFSHNFQ XYFYJRJSYX TK CG Power and Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries constitute the “Group”), and its associates and jointly controlled JSYNY^ HTRUWNXNSL TK YMJ (TSXTQNIFYJI 'FQFSHJ 8MJJY FX FY XY 2FWHM  YMJ(TSXTQNIFYJI8YFYJRJSYTK5WTÁYFSI1TXX NSHQZINSL4YMJW(TRUWJMJSXN[J .SHTRJYMJ(TSXTQNIFYJI(FXM+QT\8YFYJRJSYFSIYMJ(TSXTQNIFYJI8YFYJRJSY TK(MFSLJXNS*VZNY^KTWYMJ^JFWYMJSJSIJIFSIFXZRRFW^TKYMJXNLSNÁHFSY FHHTZSYNSLUTQNHNJXFSITYMJWJ]UQFSFYTW^NSKTWRFYNTS MJWJNSFKYJWWJKJWWJIYTFX µYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX¶ Management’s Responsibility for the Consolidated Ind AS Financial Statements 9MJ-TQINSL(TRUFS^¸X'TFWITK)NWJHYTWXNXWJXUTSXNGQJKTWYMJRFYYJWXXYFYJI NS 8JHYNTS   TK YMJ (TRUFSNJX &HY  YMJ µ&HY¶  \NYM WJXUJHY YT YMJ UWJUFWFYNTSTKYMJXJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYXYMFYLN[JFYWZJFSI KFNW[NJ\TKYMJHTSXTQNIFYJIÁSFSHNFQUTXNYNTSHTSXTQNIFYJIÁSFSHNFQUJWKTWRFSHJ NSHQZINSL 4YMJW (TRUWJMJSXN[J .SHTRJ FSI (TSXTQNIFYJI (FXM +QT\X FSI YMJ(TSXTQNIFYJI(MFSLJXNS*VZNY^TKYMJ,WTZUNSHQZINSLNYXFXXTHNFYJXFSI jointly controlled entity in accordance with the accounting principles generally FHHJUYJI NS .SINF NSHQZINSL YMJ .SINFS &HHTZSYNSL 8YFSIFWIX XUJHNÁJI ZSIJW 8JHYNTSTKYMJ&HYWJFI\NYMYMJ(TRUFSNJX .SINFS&HHTZSYNSL8YFSIFWIX 7ZQJXFXFRJSIJI 9MJWJXUJHYN[J'TFWITK)NWJHYTWXTKYMJHTRUFSNJXNSHQZIJINSYMJ,WTZUFSI TKNYXFXXTHNFYJXFSIOTNSYQ^HTSYWTQQJIJSYNY^FWJWJXUTSXNGQJKTWRFNSYJSFSHJTK FIJVZFYJ FHHTZSYNSL WJHTWIX NS FHHTWIFSHJ \NYM YMJ UWT[NXNTSX TK YMJ &HY KTW XFKJLZFWINSLYMJFXXJYXTKYMJ,WTZUFSIKTWUWJ[JSYNSLFSIIJYJHYNSLKWFZIXFSI TYMJWNWWJLZQFWNYNJX XJQJHYNTSFSIFUUQNHFYNTSTKFUUWTUWNFYJFHHTZSYNSLUTQNHNJX  making judgments and estimates that are reasonable and prudent; and the IJXNLSNRUQJRJSYFYNTSFSIRFNSYJSFSHJTKFIJVZFYJNSYJWSFQÁSFSHNFQHTSYWTQX YMFY \JWJ TUJWFYNSL JKKJHYN[JQ^ KTW JSXZWNSL YMJ FHHZWFH^ FSI HTRUQJYJSJXX TK YMJ FHHTZSYNSL WJHTWIX WJQJ[FSY YT YMJ UWJUFWFYNTS FSI UWJXJSYFYNTS TK YMJ ÁSFSHNFQ XYFYJRJSYX YMFY LN[J F YWZJ FSI KFNW [NJ\ FSI FWJ KWJJ KWTR RFYJWNFQ RNXXYFYJRJSY \MJYMJW IZJ YT KWFZI TW JWWTW \MNHM MF[J GJJS ZXJI KTW YMJ UZWUTXJTKUWJUFWFYNTSTKYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYXG^YMJ 'TFWITK)NWJHYTWXTKYMJ-TQINSL(TRUFS^FXFKTWJXFNI Auditors’ Responsibility 4ZWWJXUTSXNGNQNY^NXYTJ]UWJXXFSTUNSNTSTSYMJXJHTSXTQNIFYJI.SI&8ÁSFSHNFQ XYFYJRJSYXGFXJITSTZWFZINY<MNQJHTSIZHYNSLYMJFZINY\JMF[JYFPJSNSYT FHHTZSY YMJ UWT[NXNTSX TK YMJ &HY YMJ FHHTZSYNSL FSI FZINYNSL XYFSIFWIX FSI RFYYJWX\MNHMFWJWJVZNWJIYTGJNSHQZIJINSYMJFZINYWJUTWYZSIJWYMJUWT[NXNTSX TKYMJ&HYFSIYMJ7ZQJXRFIJYMJWJZSIJW <JHTSIZHYJITZWFZINYNSFHHTWIFSHJ\NYMYMJ8YFSIFWIXTS&ZINYNSLXUJHNÁJI ZSIJW 8JHYNTS   TK YMJ &HY 9MTXJ 8YFSIFWIX WJVZNWJ YMFY \J HTRUQ^ \NYM JYMNHFQ WJVZNWJRJSYX FSI UQFS FSI UJWKTWR YMJ FZINY YT TGYFNS WJFXTSFGQJ FXXZWFSHJFGTZY\MJYMJWYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYXFWJKWJJ KWTRRFYJWNFQRNXXYFYJRJSY &S FZINY NS[TQ[JX UJWKTWRNSL UWTHJIZWJX YT TGYFNS FZINY J[NIJSHJ FGTZY YMJ FRTZSYXFSIYMJINXHQTXZWJXNSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX9MJ procedures selected depend on the auditor’s judgement, including the assessment TK YMJ WNXPX TK RFYJWNFQ RNXXYFYJRJSY TK YMJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYX \MJYMJW IZJ YT KWFZI TW JWWTW .S RFPNSL YMTXJ WNXP FXXJXXRJSYX YMJFZINYTWHTSXNIJWXNSYJWSFQÁSFSHNFQHTSYWTQWJQJ[FSYYTYMJ-TQINSL(TRUFS^¸X UWJUFWFYNTS TK YMJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYX YMFY LN[J F YWZJ FSI KFNW [NJ\ NS TWIJW YT IJXNLS FZINY UWTHJIZWJX YMFY FWJ FUUWTUWNFYJ NS YMJ HNWHZRXYFSHJX &S FZINY FQXT NSHQZIJX J[FQZFYNSL YMJ FUUWTUWNFYJSJXX TK YMJ FHHTZSYNSL UTQNHNJX ZXJI FSI YMJ WJFXTSFGQJSJXX TK YMJ FHHTZSYNSL JXYNRFYJX RFIJ G^ YMJ -TQINSL (TRUFS^¸X 'TFWI TK )NWJHYTWX FX \JQQ FX J[FQZFYNSL YMJ T[JWFQQUWJXJSYFYNTSTKYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX

4YMJW(TRUWJMJSXN[J.SHTRJYMJNW(TSXTQNIFYJI(FXM+QT\XFSI(TSXTQNIFYJI (MFSLJXNS*VZNY^KTWYMJ^JFWJSIJITSYMFYIFYJ Other Matters 9MJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYX NSHQZIJ YMJ ÁSFSHNFQ XYFYJRJSY TK TSJ XZGXNINFW^ \MNHM MFX GJJS FZINYJI G^ 8MFWU  9FSSFS (MFWYJWJI &HHTZSYFSYX TSJ TK YMJ OTNSY FZINYTWX TK YMJ (TRUFS^ .S WJXUJHY TK YMNX XZGXNINFW^ÁSFSHNFQXYFYJRJSYXÁSFSHNFQNSKTWRFYNTSMF[JGJJSKZWSNXMJIYTZX G^YMJRFSFLJRJSYFSITZWTUNSNTSTSYMJ8YFYJRJSYNSXTKFWFXNYWJQFYJIYT YMNXXZGXNINFW^NXGFXJITSWJUTWYTKFZINYTWTKYMFYXZGXNINFW^TS\MNHMTSJTKYMJ /TNSYFZINYTWXTKYMJ(TRUFS^MF[JUQFHJIWJQNFSHJ\MTXJÁSFSHNFQXYFYJRJSY WJÂJHYYTYFQFXXJYXTK`HWTWJFXFYXY2FWHMFSIYTYFQWJ[JSZJTK `HWTWJFSISJYHFXMTZYÂT\TK`HWTWJKTWYMJ^JFWYMJSJSIJIFX HTSXNIJWJINSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX 9MJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYX FSI TYMJW ÁSFSHNFQ NSKTWRFYNTS HTSYFNSX NSKTWRFYNTS TS -TQINSL (TRUFS^¸X FSI  XZGXNINFWNJX NSHQZINSL  XZGXNINFWNJX HQFXXNÁJI FX INXHTSYNSZJI TUJWFYNTS FSI  FXXTHNFYJ HTRUFSNJX NSHTWUTWFYJI TZYXNIJ .SINF NSHQZIJI NS YMJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYXHTSXNXYTK  XZGXNINFW^ HTRUFSNJX \MTXJ ÁSFSHNFQ XYFYJRJSYX WJÂJHY YTYFQ FXXJYX TK `  HWTWJ FX FY XY 2FWHM  FSI YTYFQ WJ[JSZJ TK `  HWTWJ FSI SJY HFXM NSÂT\ TK `  HWTWJ KTW YMJ ^JFW YMJS JSIJI KWTR HTSYNSZNSL TUJWFYNTSFSIHTRUFSNJX\MTXJYTYFQFXXJYXTK`HWTWJFXFYXY 2FWHM  FSI YTYFQ WJ[JSZJ TK `  HWTWJ FSI SJY HFXM TZYÂT\ TK `HWTWJKTWYMJ^JFWYMJSJSIJIKWTRINXHTSYNSZJITUJWFYNTSYMJXJÁSFSHNFQ statements have been audited by their statutory auditors whose reports have GJJSKZWSNXMJIYTZXG^YMJRFSFLJRJSYFSI XZGXNINFW^HTRUFSNJX\MNHMFWJINXUTXJIIZWNSLYMJ^JFW\MTXJYTYFQWJ[JSZJ is `  HWTWJ FSI SJY HFXM TZYÂT\ TK `  HWTWJ NX STY FZINYJI G^ YMJ XYFYZYTW^FZINYTWXTKYMJWJXUJHYN[JHTRUFSNJXFSIFWJWJ[NJ\JIG^TSJTKYMJ /TNSY8YFYZYTW^&ZINYTWXTKYMJ(TRUFS^\MTXJWJUTWYMF[JGJJSKZWSNXMJIYT ZXG^YMJRFSFLJRJSY  XZGXNINFW^ HTRUFSNJX \MTXJ YTYFQ FXXJYX FWJ `  HWTWJ YTYFQ WJ[JSZJ is `  HWTWJ FSI SJY HFXM NSÂT\ TK `  HWTWJ KTW YMJ ^JFW JSIJI XY 2FWHMFWJSTYFZINYJIG^XYFYZYTW^FZINYTWXTKYMJXJHTRUFSNJXFSIYMJ ÁSFSHNFQXYFYJRJSYXTKYMJXJHTRUFSNJXFWJHJWYNÁJIG^YMJRFSFLJRJSYTKYMJ (TRUFS^ &XXTHNFYJHTRUFSNJX\MTXJSJYUWTÁYQTXXNX`3NQKTWYMJ^JFWJSIJIXY 2FWHMFWJSTYFZINYJIG^XYFYZYTW^FZINYTWXTKYMJXJHTRUFSNJXFSIYMJ ÁSFSHNFQXYFYJRJSYXTKYMJXJHTRUFSNJXFWJHJWYNÁJIG^YMJRFSFLJRJSYTKYMJ (TRUFS^ 9MJ ÁSFSHNFQ XYFYJRJSYX TK YMJXJ  XZGXNINFW^ HTRUFSNJX FWJ IWF\S ZU NS FHHTWIFSHJ \NYM YMJ LJSJWFQQ^ FHHJUYJI FHHTZSYNSL UWNSHNUQJX TK YMTXJ WJXUJHYN[J HTZSYWNJX µYMJ QTHFQ ,&&5¶ +TW YMJ UZWUTXJ TK UWJUFWFYNTS TK YMJ HTSXTQNIFYJI .SI &8 ÁSFSHNFQ XYFYJRJSYX YMJ FKTWJXFNI QTHFQ ,&&5 ÁSFSHNFQ XYFYJRJSYX MF[J GJJS WJXYFYJI G^ YMJ RFSFLJRJSY XT YMFY YMJXJ HTSÁWR YT YMJ .SINFS &HHTZSYNSL 8YFSIFWIX FX UJW 8JHYNTS  TK YMJ (TRUFSNJX &HY WJFI\NYMYMJ(TRUFSNJX .SINFS&HHTZSYNSL8YFSIFWIX7ZQJXFX FRJSIJI 9MJXJ ÁSFSHNFQ XYFYJRJSYX MF[J GJJS FZINYJI G^ 8MFWU  9FSSFS (MFWYJWJI &HHTZSYFSYX TSJ TK YMJ OTNSY FZINYTWX TK YMJ (TRUFS^ .S WJXUJHY TK YMJXJ XZGXNINFWNJX ÁSFSHNFQ XYFYJRJSYX  ÁSFSHNFQ NSKTWRFYNTS MF[J GJJS KZWSNXMJI YT ZX G^ YMJ RFSFLJRJSY FSI TZW TUNSNTS TS YMJ HTSXTQNIFYJI .SI &8ÁSFSHNFQXYFYJRJSYXNSXTKFWFXNYWJQFYJIYTYMJXJXZGXNINFWNJXNXGFXJITS FZINYWJUTWYTKTSJTKYMJ/TNSYFZINYTWTKYMJ(TRUFS^TS\MNHMTSJTKYMJ/TNSY FZINYTWXTKYMJ(TRUFS^MF[JUQFHJIWJQNFSHJ

Opinion

<J INI STY FZINY YMJ ÁSFSHNFQ XYFYJRJSYX TK  XZGXNINFWNJX QTHFYJI NS .SINF HQFXXNÁJIFXINXHTSYNSZJITUJWFYNTSNSHQZIJINSYMJXYFYJRJSY\MTXJÁSFSHNFQ XYFYJRJSYXWJÂJHYYTYFQFXXJYXTK`HWTWJFXFYXY2FWHMFSIYTYFQ WJ[JSZJXTK`HWTWJFSISJYHFXMTZYÂT\FRTZSYNSLYT`HWTWJKTW ^JFWYMJSJSIJI9MJXJÁSFSHNFQXYFYJRJSYXFSITYMJWÁSFSHNFQNSKTWRFYNTSMF[J GJJSFZINYJIG^TYMJWFZINYTWX\MTXJWJUTWYXMF[JGJJSKZWSNXMJIYTZXG^YMJ RFSFLJRJSYFSITZWTUNSNTSTSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYXYT YMJJ]YJSYYMJ^MF[JGJJSIJWN[JIKWTRXZHMÁSFSHNFQXYFYJRJSYXNXGFXJIXTQJQ^ TSYMJWJUTWYXTKXZHMFZINYTWX

.S TZW TUNSNTS FSI YT YMJ GJXY TK TZW NSKTWRFYNTS FSI FHHTWINSL YT YMJ J]UQFSFYNTSXLN[JSYTZXYMJFKTWJXFNIHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX LN[JYMJNSKTWRFYNTSWJVZNWJIG^YMJ&HYNSYMJRFSSJWXTWJVZNWJIFSILN[JFYWZJ FSIKFNW[NJ\NSHTSKTWRNY^\NYMYMJFHHTZSYNSLUWNSHNUQJXLJSJWFQQ^FHHJUYJINS .SINFTKYMJHTSXTQNIFYJIXYFYJTKFKKFNWXTKYMJ,WTZUNYXFXXTHNFYJXFSIOTNSYQ^ HTSYWTQQJIJSYNY^FXFYXY2FWHMFSIYMJNWHTSXTQNIFYJIQTXX NSHQZINSL

<J INI STY FZINY YMJ ÁSFSHNFQ XYFYJRJSYX TK  XZGXNINFWNJX QTHFYJI TZYXNIJ .SINFNSHQZIJINSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX\MTXJÁSFSHNFQ XYFYJRJSYX WJÂJHY YTYFQ FXXJYX TK `  HWTWJ FX FY XY 2FWHM  FSI YTYFQ WJ[JSZJX TK ` HWTWJ FSI SJY HFXM NSÂT\ FRTZSYNSL YT `  HWTWJ KTW ^JFW YMJS JSIJI FSI TSJ OTNSYQ^ HTSYWTQQJI JSYNY^ QTHFYJI TZYXNIJ .SINF NS \MNHMYMJ,WTZU¸XXMFWJTKQTXXFKYJWYF]TK`HWTWJKTWYMJ^JFWJSIJIXY

We believe that the audit evidence obtained by us and the audit evidence TGYFNSJIG^YMJTYMJWFZINYTWXNSYJWRXTKYMJNWWJUTWYXWJKJWWJIYTNS4YMJW2FYYJWX UFWFLWFUM GJQT\ NX XZKÁHNJSY FSI FUUWTUWNFYJ YT UWT[NIJ F GFXNX KTW TZW FZINY TUNSNTSTSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX

FINANCIALS

147


INDEPENDENT AUDITORS’ REPORT (Contd.) 2FWHM  \MTXJ ÁSFSHNFQ XYFYJRJSYX FSI TYMJW ÁSFSHNFQ NSKTWRFYNTS MF[J been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries, MF[JGJJSHTS[JWYJIG^YMJ(TRUFS^¸XRFSFLJRJSYKWTRFHHTZSYNSLUWNSHNUQJX generally accepted in their respective countries to accounting principles LJSJWFQQ^ FHHJUYJI NS .SINF <J MF[J FZINYJI YMJXJ HTS[JWXNTS FIOZXYRJSYX RFIJG^YMJ(TRUFS^¸XRFSFLJRJSY4ZWTUNSNTSNSXTKFWFXNYWJQFYJXYTYMJ GFQFSHJXFSIFKKFNWXTKXZHMXZGXNINFWNJXFSIOTNSYQ^HTSYWTQQJIJSYNY^TUJWFYNTSX QTHFYJITZYXNIJ.SINFNXGFXJITSYMJWJUTWYTKTYMJWFZINYTWXFSIYMJHTS[JWXNTS FIOZXYRJSYXUWJUFWJIG^YMJRFSFLJRJSYTKYMJ(TRUFS^FSIFZINYJIG^ZX 4ZWTUNSNTSTSYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYXFSITZWWJUTWYTS 4YMJW1JLFQFSI7JLZQFYTW^7JVZNWJRJSYXGJQT\NXSTYRTINÁJINSWJXUJHYTK the above matters with respect to our reliance on the work done and the reports TKYMJTYMJWFZINYTWX Report on Other Legal and Regulatory Requirements 

<NYM WJXUJHY YT YMJ FIJVZFH^ TK YMJ NSYJWSFQ ÁSFSHNFQ HTSYWTQX T[JW ÁSFSHNFQWJUTWYNSLTKYMJ-TQINSL(TRUFS^FSINYXXZGXNINFW^HTRUFSNJX NSHTWUTWFYJINS.SINFFSIYMJTUJWFYNSLJKKJHYN[JSJXXTKXZHMHTSYWTQX WJKJWYTTZWXJUFWFYJ7JUTWYNSAnnexure ‘A’; and

(g)

With respect to the other matters to be included in the Auditor’s Report NSFHHTWIFSHJ\NYM7ZQJTKYMJ(TRUFSNJX &ZINYFSI&ZINYTWX7ZQJX NSTZWTUNSNTSFSIYTYMJGJXYTKTZWNSKTWRFYNTSFSIFHHTWINSLYT YMJJ]UQFSFYNTSXLN[JSYTZX 

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YMJ ,WTZU INI STY MF[J FS^ QTSLYJWR HTSYWFHYX NSHQZINSL IJWN[FYN[J HTSYWFHYX KTW \MNHM YMJWJ \JWJ FS^ RFYJWNFQ KTWJXJJFGQJQTXXJX



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148

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CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

For SHARP & TANNAN CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Vinayak M. Padwal PARTNER 2JRGJWXMNU3T 5QFHJ3J\)JQMN )FYJIYM2F^

For CHATURVEDI & SHAH CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Parag D. Mehta PARTNER 2JRGJWXMNU3T


ANNEXURE ‘A’ TO THE INDEPENDENT AUDITORS’ REPORT

<JMF[JFZINYJIYMJNSYJWSFQÁSFSHNFQHTSYWTQXT[JWÁSFSHNFQWJUTWYNSL TK CG Power and Industrial Solutions Limited (Formerly known as Crompton Greaves Limited) (the “Holding Company”) and its XZGXNINFW^HTRUFSNJX\MNHMFWJNSHTWUTWFYJINS.SINFFXTKXY2FWHM NSHTSOZSHYNTS\NYMTZWFZINYTKYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQ XYFYJRJSYXTKYMJ(TRUFS^KTWYMJ^JFWJSIJITSYMFYIFYJ Management’s Responsibility for Internal Financial Controls 9MJ -TQINSL (TRUFS^¸X 'TFWI TK )NWJHYTWX NX WJXUTSXNGQJ KTW JXYFGQNXMNSL FSI RFNSYFNSNSL NSYJWSFQ ÁSFSHNFQ HTSYWTQX GFXJI TS YMJ NSYJWSFQ HTSYWTQ T[JW ÁSFSHNFQ WJUTWYNSL HWNYJWNF JXYFGQNXMJI G^ YMJ (TRUFS^ HTSXNIJWNSL YMJ JXXJSYNFQ HTRUTSJSYX TK NSYJWSFQ HTSYWTQ XYFYJI NS YMJ ,ZNIFSHJ 3TYJ TS &ZINY TK .SYJWSFQ +NSFSHNFQ (TSYWTQX 4[JW+NSFSHNFQ7JUTWYNSL YMJµ,ZNIFSHJ3TYJ¶NXXZJIG^YMJ.SXYNYZYJ TK(MFWYJWJI&HHTZSYFSYXTK.SINF .(&.9MJXJWJXUTSXNGNQNYNJXNSHQZIJ YMJ IJXNLS NRUQJRJSYFYNTS FSI RFNSYJSFSHJ TK FIJVZFYJ NSYJWSFQ ÁSFSHNFQ HTSYWTQX YMFY \JWJ TUJWFYNSL JKKJHYN[JQ^ KTW JSXZWNSL YMJ TWIJWQ^ FSI JKÁHNJSY HTSIZHY TK NYX GZXNSJXX NSHQZINSL FIMJWJSHJ YT (TRUFS^¸XUTQNHNJXYMJXFKJLZFWINSLTKNYXFXXJYXYMJUWJ[JSYNTSFSI IJYJHYNTSTKKWFZIXFSIJWWTWXYMJFHHZWFH^FSIHTRUQJYJSJXXTKYMJ FHHTZSYNSL WJHTWIX FSI YMJ YNRJQ^ UWJUFWFYNTS TK WJQNFGQJ ÁSFSHNFQ NSKTWRFYNTSFXWJVZNWJIZSIJWYMJ(TRUFSNJX&HY YMJµ&HY¶ Auditors’ Responsibility 4ZWWJXUTSXNGNQNY^NXYTJ]UWJXXFSTUNSNTSTSYMJ(TRUFS^¸XNSYJWSFQ ÁSFSHNFQ HTSYWTQX T[JW ÁSFSHNFQ WJUTWYNSL GFXJI TS TZW FZINY <J conducted our audit in accordance with the Guidance Note and the 8YFSIFWIXTS&ZINYNSLNXXZJIG^.(&.FSIIJJRJIYTGJUWJXHWNGJI ZSIJW8JHYNTS TKYMJ&HYYTYMJJ]YJSYFUUQNHFGQJYTFSFZINY TK NSYJWSFQ ÁSFSHNFQ HTSYWTQX GTYM FUUQNHFGQJ YT FS FZINY TK .SYJWSFQ +NSFSHNFQ(TSYWTQXFSIGTYMNXXZJIG^YMJ.(&.9MTXJ8YFSIFWIXFSI YMJ ,ZNIFSHJ 3TYJ WJVZNWJ YMFY \J HTRUQ^ \NYM JYMNHFQ WJVZNWJRJSYX FSIUQFSFSIUJWKTWRYMJFZINYYTTGYFNSWJFXTSFGQJFXXZWFSHJFGTZY \MJYMJWFIJVZFYJNSYJWSFQÁSFSHNFQHTSYWTQXT[JWÁSFSHNFQWJUTWYNSL\FX JXYFGQNXMJIFSIRFNSYFNSJIFSINKXZHMHTSYWTQXTUJWFYJIJKKJHYN[JQ^NS FQQRFYJWNFQWJXUJHYX 4ZW FZINY NS[TQ[JX UJWKTWRNSL UWTHJIZWJX YT TGYFNS FZINY J[NIJSHJ FGTZY YMJ FIJVZFH^ TK YMJ NSYJWSFQ ÁSFSHNFQ HTSYWTQX X^XYJR T[JW ÁSFSHNFQ WJUTWYNSL FSI YMJNW TUJWFYNSL JKKJHYN[JSJXX 4ZW FZINY TK NSYJWSFQ ÁSFSHNFQ HTSYWTQX T[JW ÁSFSHNFQ WJUTWYNSL NSHQZIJI TGYFNSNSL FSZSIJWXYFSINSLTKNSYJWSFQÁSFSHNFQHTSYWTQXT[JWÁSFSHNFQWJUTWYNSL assessing the risk that a material weakness exists, and testing and J[FQZFYNSL YMJ IJXNLS FSI TUJWFYNSL JKKJHYN[JSJXX TK NSYJWSFQ HTSYWTQ GFXJITSYMJFXXJXXJIWNXP9MJUWTHJIZWJXXJQJHYJIIJUJSITSYMJ FZINYTW¸XOZILJRJSYNSHQZINSLYMJFXXJXXRJSYTKYMJWNXPXTKRFYJWNFQ RNXXYFYJRJSYTKYMJHTSXTQNIFYJI.SI&8ÁSFSHNFQXYFYJRJSYX\MJYMJW IZJYTKWFZITWJWWTW <JGJQNJ[JYMFYYMJFZINYJ[NIJSHJ\JMF[JTGYFNSJINXXZKÁHNJSYFSI FUUWTUWNFYJYTUWT[NIJFGFXNXKTWTZWFZINYTUNSNTSTSYMJ(TRUFS^¸X NSYJWSFQÁSFSHNFQHTSYWTQXX^XYJRT[JWÁSFSHNFQWJUTWYNSL

(REFERRED TO IN PARAGRAPH 1(F) OF OUR REPORT OF EVEN DATE)

Meaning of Internal Financial Controls Over Financial Reporting & (TRUFS^¸X NSYJWSFQ ÁSFSHNFQ HTSYWTQ T[JW ÁSFSHNFQ WJUTWYNSL NX a process designed to provide reasonable assurance regarding YMJ WJQNFGNQNY^ TK ÁSFSHNFQ WJUTWYNSL FSI YMJ UWJUFWFYNTS TK ÁSFSHNFQ XYFYJRJSYX KTW J]YJWSFQ UZWUTXJX NS FHHTWIFSHJ \NYM LJSJWFQQ^ FHHJUYJIFHHTZSYNSLUWNSHNUQJX&(TRUFS^¸XNSYJWSFQÁSFSHNFQHTSYWTQ T[JW ÁSFSHNFQ WJUTWYNSL NSHQZIJX YMTXJ UTQNHNJX FSI UWTHJIZWJX YMFY  UJWYFNS YT YMJ RFNSYJSFSHJ TK WJHTWIX YMFY NS WJFXTSFGQJ IJYFNQ FHHZWFYJQ^ FSI KFNWQ^ WJÂJHY YMJ YWFSXFHYNTSX FSI INXUTXNYNTSX TK YMJ FXXJYX TK YMJ (TRUFS^   UWT[NIJ WJFXTSFGQJ FXXZWFSHJ YMFY YWFSXFHYNTSX FWJ WJHTWIJI FX SJHJXXFW^ YT UJWRNY UWJUFWFYNTS TK ÁSFSHNFQXYFYJRJSYXNSFHHTWIFSHJ\NYMLJSJWFQQ^FHHJUYJIFHHTZSYNSL UWNSHNUQJX FSI YMFY WJHJNUYX FSI J]UJSINYZWJX TK YMJ (TRUFS^ FWJ GJNSL RFIJ TSQ^ NS FHHTWIFSHJ \NYM FZYMTWNXFYNTSX TK RFSFLJRJSY FSIINWJHYTWXTKYMJ(TRUFS^ FSI UWT[NIJWJFXTSFGQJFXXZWFSHJ WJLFWINSL UWJ[JSYNTS TW YNRJQ^ IJYJHYNTS TK ZSFZYMTWNXJI FHVZNXNYNTS ZXJTWINXUTXNYNTSTKYMJ(TRUFS^¸XFXXJYXYMFYHTZQIMF[JFRFYJWNFQ JKKJHYTSYMJÁSFSHNFQXYFYJRJSYX Inherent Limitations of Internal Financial Controls Over Financial Reporting 'JHFZXJ TK YMJ NSMJWJSY QNRNYFYNTSX TK NSYJWSFQ ÁSFSHNFQ HTSYWTQX T[JW ÁSFSHNFQ WJUTWYNSL NSHQZINSL YMJ UTXXNGNQNY^ TK HTQQZXNTS TW NRUWTUJW RFSFLJRJSY T[JWWNIJ TK HTSYWTQX RFYJWNFQ RNXXYFYJRJSYX IZJ YT JWWTWTWKWFZIRF^THHZWFSISTYGJIJYJHYJI&QXTUWTOJHYNTSXTKFS^ J[FQZFYNTS TK YMJ NSYJWSFQ ÁSFSHNFQ HTSYWTQX T[JW ÁSFSHNFQ WJUTWYNSL YT KZYZWJUJWNTIXFWJXZGOJHYYTYMJWNXPYMFYYMJNSYJWSFQÁSFSHNFQHTSYWTQ T[JWÁSFSHNFQWJUTWYNSLRF^GJHTRJNSFIJVZFYJGJHFZXJTKHMFSLJX NS HTSINYNTSX TW YMFY YMJ IJLWJJ TK HTRUQNFSHJ \NYM YMJ UTQNHNJX TW UWTHJIZWJXRF^IJYJWNTWFYJ Opinion In our opinion, the Holding Company has, in all material respects, an FIJVZFYJNSYJWSFQÁSFSHNFQHTSYWTQXX^XYJRT[JWÁSFSHNFQWJUTWYNSLFSI XZHMNSYJWSFQÁSFSHNFQHTSYWTQXT[JWÁSFSHNFQWJUTWYNSL\JWJTUJWFYNSL JKKJHYN[JQ^FXFYXY2FWHMGFXJITSYMJNSYJWSFQHTSYWTQT[JW ÁSFSHNFQWJUTWYNSLHWNYJWNFJXYFGQNXMJIG^YMJ(TRUFS^HTSXNIJWNSLYMJ JXXJSYNFQHTRUTSJSYXTKNSYJWSFQHTSYWTQXYFYJINSYMJ,ZNIFSHJ3TYJ NXXZJIG^YMJ.(&.

For SHARP & TANNAN CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Vinayak M. Padwal PARTNER 2JRGJWXMNU3T

For CHATURVEDI & SHAH CHARTERED ACCOUNTANTS +NWR¸X7JLNXYWFYNTS3T< Parag D. Mehta PARTNER 2JRGJWXMNU3T

5QFHJ3J\)JQMN )FYJIYM2F^

FINANCIALS

149


` crore

CONSOLIDATED BALANCE SHEET

AS AT 31ST MARCH, 2017

3TYJ3T

&XFY

&XFY

ASSETS 1.

NON-CURRENT ASSETS: F 5WTUJWY^UQFSYFSIJVZNURJSY G (FUNYFQ\TWPNSUWTLWJXX (c) Investment property (d) Goodwill J 4YMJWNSYFSLNGQJFXXJYX K .SYFSLNGQJFXXJYXZSIJWIJ[JQTURJSY (g) Financial assets (i) Investments  NN 1TFSX M )JKJWWJIYF]FXXJYX N 4YMJWSTSHZWWJSYFXXJYX

     

1376.29 28.18 143.54 184.79 33.30

     

   

203.92 6.65 26.62 3.21

    

2006.50 2.

3.

CURRENT ASSETS: (a) Inventories (b) Financial assets (i) Investments (ii) Trade receivables  NNN (FXMFSIHFXMJVZN[FQJSYX  N[ 'FSPGFQFSHJXTYMJWYMFS NNNFGT[J  [ 1TFSX  [N 4YMJWX (c) Current tax assets (net) I 4YMJWHZWWJSYFXXJYX



882.10



     

5.22 1877.15 724.49 36.22 76.25 173.28 70.57 1212.48

       



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

  

5057.76 3123.84 10188.10



EQUITY AND LIABILITIES EQUITY: (a) *VZNY^XMFWJHFUNYFQ (b) 4YMJWJVZNY^



 

125.35 3985.74



4111.09 LIABILITIES: 1. NON-CURRENT LIABILITIES: (a) Financial liabilities  N 'TWWT\NSLX  NN 4YMJWĂ SFSHNFQQNFGNQNYNJX

2.

3.

 

G 5WT[NXNTSX H )JKJWWJIYF]QNFGNQNYNJX I 4YMJWSTSHZWWJSYQNFGNQNYNJX CURRENT LIABILITIES: (a) Financial liabilities  N 'TWWT\NSLX (ii) Trade payables  NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX

  

G 4YMJWHZWWJSYQNFGNQNYNJX H 5WT[NXNTSX 3PHIPSP[PLZ HZZVJPH[LK ^P[O NYV\W VM HZZL[Z JSHZZPĂ&#x201A;LK HZ OLSK MVY ZHSL HUK KPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

  

  

 

503.80 1.14

   

504.94 71.21 262.30 0.94

  

710.67 1383.14 404.28 2498.09 556.24 84.08

  

2099.21 10188.10

 

 

CONTINGENT LIABILITIES AND COMMITMENTS SIGNIFICANT ACCOUNTING POLICIES

;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VMJVUZVSPKH[LKĂ&#x201A;UHUJPHSZ[H[LTLU[Z

150

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

G^YMJMFSITK

G^YMJMFSITK

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

3TYJ3T





CONTINUING OPERATIONS INCOME: 7J[JSZJKWTRTUJWFYNTSX 4YMJWNSHTRJ TOTAL INCOME

 

 

6119.75 68.70



6188.45

EXPENSES: (TXYTKRFYJWNFQXHTSXZRJI 5ZWHMFXJXTKXYTHPNSYWFIJ (MFSLJXNSNS[JSYTWNJXTKÁSNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ *RUQT^JJGJSJÁYXJ]UJSXJ Finance costs )JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ 4YMJWJ]UJSXJX TOTAL EXPENSES PROFIT BEFORE SHARE OF PROFIT / (LOSS) FROM ASSOCIATES AND JOINT VENTURE, EXCEPTIONAL ITEMS AND TAX 8MFWJTKUWTÁY QTXXKWTRFXXTHNFYJXFSIOTNSY[JSYZWJ *]HJUYNTSFQNYJRX SJY PROFIT BEFORE TAX TAX EXPENSE:

      

Current tax )JKJWWJIYF]2&9HWJINYJSYNYQJRJSY )JKJWWJIYF] HWJINY

  

      

3945.88 236.41 (168.17) 537.10 188.03 149.99 1098.32 5987.56



200.89 (1.57) (72.73) 126.59

        

47.52 (11.83) (19.09)

 

16.60 109.99

PROFIT FROM CONTINUING OPERATIONS AFTER TAX LOSS FROM DISCONTINUED OPERATIONS BEFORE TAX 9F]J]UJSXJ HWJINYXTKINXHTSYNSZJITUJWFYNTSX LOSS FROM DISCONTINUED OPERATIONS AFTER TAX LOSS FOR THE YEAR Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

 

  

(611.47) (10.85)

OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX  NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX ' N .YJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX  NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX OTHER COMPREHENSIVE INCOME FOR THE YEAR TOTAL COMPREHENSIVE INCOME FOR THE YEAR Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

(600.62) (490.63)

   

(490.86) (0.23) (490.63)

         

(57.77) 2.44 58.86 -

Earnings per share for continuing operations (`) +FHJ[FQZJTKJVZNY^XMFWJTK`JFHM Earnings per share for discontinued operations (`) +FHJ[FQZJTKJVZNY^XMFWJTK`JFHM Earnings per share (basic and diluted) (`) +FHJ[FQZJTKJVZNY^XMFWJTK`JFHM

3.53 (487.10)

  

(487.33) (0.23)

  



1.75





(9.58)

 



(7.83)

 



SIGNIFICANT ACCOUNTING POLICIES ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VMJVUZVSPKH[LKÂUHUJPHSZ[H[LTLU[Z As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

G^YMJMFSITK

G^YMJMFSITK

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^ FINANCIALS

151


` crore

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2017





126.59



[A] CASH FLOWS FROM OPERATING ACTIVITIES 7YVĂ&#x201A;[ILMVYL[H_MYVTJVU[PU\PUNVWLYH[PVUZ &IOZXYRJSYXKTW .RUFNWRJSYTKLTTI\NQQ )JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ &QQT\FSHJKTWITZGYKZQIJGYXFSIFI[FSHJX

43.61



149.99



28.99



Finance costs

188.03



Interest income

(39.37)

 

.SHTRJKWTRNS[JXYRJSYX SJY 5WTĂ YTSXFQJTKNS[JXYRJSYX SJY

-

 

(7.21)

   

:SWJFQNXJIJ]HMFSLJ LFNSQTXX SJY

27.80

Unrealised exchange gain on consolidation (net)

56.18



5WTĂ YTSXFQJTKUWTUJWY^UQFSYFSIJVZNURJSY SJY

(4.15)

 

443.87



570.46



.SHWJFXJ)JHWJFXJNSYWFIJFSITYMJWWJHJN[FGQJX

(379.37)

 

.SHWJFXJ)JHWJFXJNSNS[JSYTWNJX

(345.67)

 

178.73



6WLYH[PUNWYVĂ&#x201A;[ILMVYL^VYRPUNJHWP[HSJOHUNLZ &IOZXYRJSYXKTW

.SHWJFXJ )JHWJFXJNSYWFIJFSITYMJWUF^FGQJX .SHWJFXJ )JHWJFXJNSUWT[NXNTSX

1.28



(545.03)



(FXM ZXJINSKWTRTUJWFYNTSX

25.43



)NWJHYYF]JXUFNI SJYTKWJKZSIX

(85.98)

 

3TSHTSYWTQQNSLNSYJWJXYNS UWTĂ YQTXX Net cash (used in) / from operating activities

(0.23)



(60.78)



(479.17)

 

(539.95)

 

8FQJTKUWTUJWY^UQFSYFSIJVZNURJSYFSINSYFSLNGQJFXXJYX

14.78



Unrealised exchange gain on consolidation (net)

30.63



-



Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

[A]

[B] CASH FLOWS FROM INVESTING ACTIVITIES (KK! 0UĂ&#x192;V^ZMYVTPU]LZ[PUNHJ[P]P[PLZ

8FQJTKNS[JXYRJSYXNSOTNSY[JSYZWJ 8FQJTKNS[JXYRJSYXNSXZGXNINFWNJX

788.67



8FQJTKHZWWJSYNS[JXYRJSYX

104.79



32.78



Interest received .SHTRJWJHJN[JIKWTRNS[JXYRJSYX SJY

-



971.65



(63.79)

 

-

 

Less:6\[Ă&#x192;V^ZMYVTPU]LZ[PUNHJ[P]P[PLZ 5ZWHMFXJTKUWTUJWY^UQFSYFSIJVZNURJSYFSINSYFSLNGQJFXXJYX Unrealised exchange gain on consolidation (net) 5ZWHMFXJTKNS[JXYRJSYX

Net cash (used in) / from investing activities Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

152

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

[B]

(106.47)



(170.26)

 

801.39



(304.62)

 

496.77




` crore

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31ST MARCH, 2017 (Contd.)





647.91



1654.17



-



[C] CASH FLOWS FROM FINANCING ACTIVITIES (KK! 0UÃ&#x192;V^ZMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ 5WTHJJIXKWTRQTSLYJWRGTWWT\NSLX 5WTHJJIXKWTRXMTWYYJWRGTWWT\NSLX Unrealised exchange loss on consolidation (net) (MFSLJXNSSTSHTSYWTQQNSLNSYJWJXY

0.23



2302.31



Less:6\[Ã&#x192;V^ZMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ 7JUF^RJSYTKQTSLYJWRGTWWT\NSLX

(176.12)

 

7JUF^RJSYTKXMTWYYJWRGTWWT\NSLX

(1630.01)

 

Unrealised exchange loss on consolidation (net) )N[NIJSIUFNI Interest paid

(30.39)



(0.36)

 

(184.03)

 

-

 

(2020.91)

 

281.40



(231.17)

 

50.23

 

(MFSLJXNSSTSHTSYWTQQNSLNSYJWJXY

5L[JHZO\ZLKPUMYVTÃ&#x201A;UHUJPUNHJ[P]P[PLZ Net cash (used in) / from discontinued activities Net cash (used in) / from continuing and discontinued activities

[C]

7.05



Cash and cash equivalents at beginning of the year

830.86



Cash and cash equivalents at end of the year

837.91



Cash and cash equivalents from continuing operations

724.49



Cash and cash equivalents from discontinued operations

113.42



Cash and cash equivalents from continuing and discontinued operations

837.91



NET INCREASE / (DECREASE) IN CASH AND BANK BALANCES (A+B+C)

Notes: 

9MJHTSXTQNIFYJIHFXMÃ&#x201A;T\XYFYJRJSYMFXGJJSUWJUFWJIZSIJWYMJNSINWJHYRJYMTIFXXJYTZYNS.SINFS&HHTZSYNSL8YFSIFWI .SI&88YFYJRJSYTK(FXM +QT\X



&IINYNTSXYTUWTUJWY^UQFSYFSIJVZNURJSYFSINSYFSLNGQJFXXJYXNSHQZIJRT[JRJSYTKHFUNYFQ\TWPNSUWTLWJXXFSINSYFSLNGQJFXXJYXZSIJWIJ[JQTURJSY WJXUJHYN[JQ^IZWNSLYMJ^JFW

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

G^YMJMFSITK

G^YMJMFSITK

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

FINANCIALS

153


` crore

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31ST MARCH, 2017

(A) EQUITY SHARE CAPITAL For the year ended 31st March, 2017 Changes in JVZNY^XMFWJ 'FQFSHJFXFY capital during  the year 125.35

'FQFSHJFXFY 

-

125.35

+TWYMJ^JFWJSIJIXY2FWHM Changes in JVZNY^XMFWJ 'FQFSHJFXFY capital during  the year 

'FQFSHJFXFY 





(B) OTHER EQUITY For the year ended 31st March, 2017

5FWYNHZQFWX Balance as at 1st April, 2016 5WTĂ Y QTXXKTWYMJ^JFW 4YMJWHTRUWJMJSXN[JNSHTRJKTWYMJ^JFW  7JRJFXZWJRJSYLFNSX QTXXTS IJĂ SJIGJSJĂ YUQFSX  +FNW[FQZJQTXXTS+;4(.Ă SFSHNFQFXXJY  +TWJNLSHZWWJSH^YWFSXQFYNTSINKKJWJSHJX  *KKJHYN[JUTWYNTSTKHFXMĂ&#x201A;T\MJILJ Addition to government grant during the year 9WFSXKJWWJIYTWJYFNSJIJFWSNSLX Balance as at 31st March, 2017

Foreign Currency Retained Hedge Translation +;4(. Capital Reserve Reserve Reserve *FWSNSLX Reserve 3250.49 (4.74) 334.34 (45.69) 671.65 (490.86) -

3TS Capital 8JHZWNYNJX Capital Controlling Total Reserve on Redemption 5WJRNZR 8YFYZYTW^ Government interest *VZNY^ Grant Total Reserve Reserve Reserve Consolidation 157.26 12.95 18.30 67.05 2.00 4463.61 8.20 4471.81 - (490.86) 0.23 (490.63)

(8.51) -

3.71

55.15 -

(46.82) -

-

-

-

-

-

3.03 2754.15

(1.03)

389.49

(92.51)

671.65

157.26

12.95

18.30

67.05

-

(8.51) (46.82) 55.15 3.71

1.03 1.03 (3.03) - 3977.31

-

(8.51) (46.82) 55.15 3.71

1.03 8.43 3985.74

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5FWYNHZQFWX Balance as at 1st April, 2015 1TXXKTWYMJ^JFW

Foreign 3TS Capital 8JHZWNYNJX Capital Currency Controlling Total Reserve on Redemption 5WJRNZR 8YFYZYTW^ Government Retained Hedge Translation +;4(. Capital interest *VZNY^ Grant Total Reserve Reserve Reserve Reserve Reserve Reserve Consolidation *FWSNSLX Reserve                               

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  157.26

  12.95

  18.30

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  3250.49

  (4.74)

  334.34

  (45.69)

  671.65

9WFSXKJWWJITSIJRJWLJW Addition to government grant during the year Translation adjustments Balance as at 31st March, 2016

154

 



    2.00 4463.61

           



      8.20 4471.81

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

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G^YMJMFSITK

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



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CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

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2.1 Basis of preparation:  9MJÁSFSHNFQXYFYJRJSYXTKYMJ,WTZUMF[JGJJSUWJUFWJINSFHHTWIFSHJ\NYM.SINFS&HHTZSYNSL8YFSIFWIX .SI&8STYNÁJIZSIJWXJHYNTS TKYMJ(TRUFSNJX&HYWJFI\NYMYMJ(TRUFSNJX .SINFS&HHTZSYNSL8YFSIFWIX7ZQJXFXFRJSIJIKWTRYNRJYTYNRJG^ YMJ(TRUFSNJX .SINFS&HHTZSYNSL8YFSIFWIX &RJSIRJSY7ZQJX  9MJÁSFSHNFQXYFYJRJSYXMF[JGJJSUWJUFWJITSFMNXYTWNHFQHTXYGFXNXJ]HJUYKTWYMJKTQQT\NSLFXXJYXFSIQNFGNQNYNJX\MNHMMF[JGJJS RJFXZWJIFYKFNW[FQZJ ‰

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The Group’s voting rights and potential voting rights, and

‰

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FINANCIALS

155


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

2. BASIS OF PREPARATION AND CONSOLIDATION (Contd.)

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3.1 Property, plant and equipment: 

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NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

Leased assets 

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3.2 Investment properties: 

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 0TWHPYTLU[VMUVUÂUHUJPHSHZZL[Z! As at each balance sheet date, the Group assesses whether there is an indication that an asset may be impaired and also whether there is FSNSINHFYNTSTKWJ[JWXFQTKNRUFNWRJSYQTXXWJHTLSNXJINSYMJUWJ[NTZXUJWNTIX.KFS^NSINHFYNTSJ]NXYXTW\MJSFSSZFQNRUFNWRJSYYJXYNSL KTWFSFXXJYNXWJVZNWJINKFS^YMJ,WTZUIJYJWRNSJXYMJWJHT[JWFGQJFRTZSYFSINRUFNWRJSYQTXXNXWJHTLSNXJI\MJSYMJHFWW^NSLFRTZSY TKFSFXXJYJ]HJJIXNYXWJHT[JWFGQJFRTZSY 

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‰

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.RUFNWRJSYQTXXJXTKHTSYNSZNSLTUJWFYNTSXNSHQZINSLNRUFNWRJSYTSNS[JSYTWNJXFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSIQTXXJ]HJUY KTWUWTUJWYNJXUWJ[NTZXQ^WJ[FQZJI\NYMYMJWJ[FQZFYNTSYFPJSYT4YMJW(TRUWJMJSXN[J.SHTRJ YMJ·4(.¸NKFS^+TWXZHMUWTUJWYNJXYMJ NRUFNWRJSYNXWJHTLSNXJINS4(.ZUYTYMJFRTZSYTKFS^UWJ[NTZXWJ[FQZFYNTS For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously WJHTLSNXJI NRUFNWRJSY QTXXJX ST QTSLJW J]NXY TW MF[J IJHWJFXJI .K XZHM NSINHFYNTS J]NXYX YMJ ,WTZU JXYNRFYJX YMJ FXXJY¸X TW (,:¸X WJHT[JWFGQJFRTZSY&UWJ[NTZXQ^WJHTLSNXJINRUFNWRJSYQTXXNXWJ[JWXJITSQ^NKYMJWJMFXGJJSFHMFSLJNSYMJFXXZRUYNTSXZXJIYT IJYJWRNSJ YMJ FXXJY¸X WJHT[JWFGQJ FRTZSY XNSHJ YMJ QFXY NRUFNWRJSY QTXX \FX WJHTLSNXJI 9MJ WJ[JWXFQ NX QNRNYJI XT YMFY YMJ HFWW^NSL FRTZSYTKYMJFXXJYITJXSTYJ]HJJINYXWJHT[JWFGQJFRTZSYSTWJ]HJJIYMJHFWW^NSLFRTZSYYMFY\TZQIMF[JGJJSIJYJWRNSJISJYTK IJUWJHNFYNTSMFISTNRUFNWRJSYQTXXGJJSWJHTLSNXJIKTWYMJFXXJYNSUWNTW^JFWX8ZHMWJ[JWXFQNXWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁY FSIQTXXZSQJXXYMJFXXJYNXHFWWNJIFYFWJ[FQZJIFRTZSYNS\MNHMHFXJYMJWJ[JWXFQNXYWJFYJIFXFWJ[FQZFYNTSNSHWJFXJ FINANCIALS

157


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



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3.4 Intangible assets: 

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7JXJFWHMHTXY



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‰

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NN 9MJ,WTZUMFXNSYJSYNTSYTHTRUQJYJYMJIJ[JQTURJSYTKNSYFSLNGQJFXXJYFSIZXJTWXJQQNY (iii) The Group has ability to use or sell the intangible asset; N[ 9MJRFSSJWNS\MNHMYMJUWTGFGQJKZYZWJJHTSTRNHGJSJÁY\NQQGJLJSJWFYJINSHQZINSLYMJJ]NXYJSHJTKFRFWPJYKTWTZYUZYTKYMJ NSYFSLNGQJFXXJYTWYMJNSYFSLNGQJFXXJYNYXJQKTWNKNYNXYTGJZXJINSYJWSFQQ^YMJZXJKZQSJXXTKYMJNSYFSLNGQJFXXJY [ 9MJF[FNQFGNQNY^TKFIJVZFYJYJHMSNHFQÁSFSHNFQFSITYMJWWJXTZWHJXYTHTRUQJYJYMJIJ[JQTURJSYFSIYTZXJTWXJQQYMJNSYFSLNGQJ asset; and [N 9MJ,WTZUMFXFGNQNY^YTRJFXZWJYMJJ]UJSINYZWJFYYWNGZYFGQJYTYMJNSYFSLNGQJFXXJYIZWNSLYMJIJ[JQTURJSYWJQNFGQ^ 

158

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CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

3.5 Inventories: 



.S[JSYTWNJXFWJHFWWNJINSYMJGFQFSHJXMJJYFXKTQQT\X F 7F\RFYJWNFQXUFHPNSLRFYJWNFQXHTSXYWZHYNTSRFYJWNFQX XYTWJXFSIXUFWJX

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3.6 Cash and cash equivalents: 

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3.7 Foreign currency transactions and foreign operations: 

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3.8 Service concession arrangements: 

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FINANCIALS

159


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



9MJ,WTZURFSFLJXHTSHJXXNTSFWWFSLJRJSYX\MNHMNSHQZIJHTSXYWZHYNSLUT\JWINXYWNGZYNTSFXXJYXKTWINXYWNGZYNTSTKJQJHYWNHNY^9MJ,WTZU RFNSYFNSXFSIXJW[NHJXYMJNSKWFXYWZHYZWJIZWNSLYMJHTSHJXXNTSUJWNTI9MJXJHTSHJXXNTSFWWFSLJRJSYXXJYTZYWNLMYXFSITGQNLFYNTSX WJQFYJIYTYMJNSKWFXYWZHYZWJFSIYMJXJW[NHJYTGJUWT[NIJI



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3.9 Revenue recognition: Sale of goods 

7J[JSZJKWTRXFQJTKLTTIXNXWJHTLSNXJI\MJSFQQXNLSNÁHFSYWNXPXFSIWJ\FWIXTKT\SJWXMNUFWJYWFSXKJWWJIYTYMJGZ^JWFXUJWYMJYJWRX TKYMJHTSYWFHYXYMJFRTZSYHFSGJRJFXZWJIWJQNFGQ^FSINYNXUWTGFGQJYMFYYMJJHTSTRNHGJSJÁYXFXXTHNFYJI\NYMYMJYWFSXFHYNTS\NQQ ÂT\YTYMJ,WTZU+ZWYMJWWJ[JSZJNXWJHTLSNXJITSQ^NKYMJ,WTZUWJYFNSXSJNYMJWRFSFLJWNFQHTSYNSZNSLNS[TQ[JRJSYYTYMJIJLWJJZXZFQQ^ FXXTHNFYJI\NYMT\SJWXMNUSTWJKKJHYN[JHTSYWTQT[JWYMJLTTIXXTQIFSIYMJHTXYXNSHZWWJITWYTGJNSHZWWJINSWJXUJHYTKYMJYWFSXFHYNTS HFSGJRJFXZWJIWJQNFGQ^7J[JSZJFQXTNSHQZIJXJ]HNXJIZY^FSIUWNHJ[FWNFYNTSXGFXJITSYMJHTSYWFHYZFQFLWJJRJSYXFSIJ]HQZIJX[FQZJ FIIJIYF]XFQJXYF].YNXRJFXZWJIFYKFNW[FQZJTKHTSXNIJWFYNTSWJHJN[JITWWJHJN[FGQJSJYTKWJYZWSXFSIFQQT\FSHJXYWFIJINXHTZSY HFXMINXHTZSYFSI[TQZRJWJGFYJX Rendering of services



7J[JSZJKWTRXFQJTKXJW[NHJXNXWJHTLSNXJIFXUJWYMJYJWRXTKYMJHTSYWFHY\NYMHZXYTRJWXGFXJITSXYFLJTKHTRUQJYNTS\MJSYMJ TZYHTRJTKYMJYWFSXFHYNTSXNS[TQ[NSLWJSIJWNSLTKXJW[NHJXHFSGJJXYNRFYJIWJQNFGQ^5JWHJSYFLJTKHTRUQJYNTSRJYMTIWJVZNWJXYMJ ,WTZUYTJXYNRFYJYMJXJW[NHJXUJWKTWRJIYTIFYJFXFUWTUTWYNTSTKYMJYTYFQXJW[NHJXYTGJUJWKTWRJI Revenue from construction contracts



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ÂJHYJIFYHTXYYMFYFWJJ]UJHYJIYTGJWJHT[JWFGQJYNQQ XZHMYNRJYMJTZYHTRJTKYMJHTSYWFHYHFSSTYGJFXHJWYFNSJIWJQNFGQ^FSIFYWJFQNXFGQJ[FQZJYMJWJFKYJW(QFNRXFWJFHHTZSYJIFXNSHTRJ NSYMJ^JFWTKFHHJUYFSHJG^HZXYTRJW Power distribution



7J[JSZJKWTRUT\JWINXYWNGZYNTSGZXNSJXXNXFHHTZSYJITSYMJGFXNXTKGNQQNSLXYTYMJHZXYTRJWXFSINSHQZIJXZSGNQQJIWJ[JSZJXFHHWZJI ZU YT YMJ JSI TK FHHTZSYNSL ^JFW (ZXYTRJWX FWJ GNQQJI FX UJW YMJ YFWNKK WFYJX NXXZJI G^ *QJHYWNHNY^ 7JLZQFYTW^ (TRRNXXNTS .SYJWJXY NX FHHTZSYJITSFHHWZFQGFXNXTST[JWIZJGNQQX Dividend income



)N[NIJSINSHTRJNXFHHTZSYJIKTW\MJSYMJWNLMYYTWJHJN[JYMJXFRJNXJXYFGQNXMJI\MNHMNXLJSJWFQQ^\MJSXMFWJMTQIJWXFUUWT[JYMJ IN[NIJSI Lease income



1JFXJFLWJJRJSYX\MJWJYMJWNXPXFSIWJ\FWIXNSHNIJSYFQYTYMJT\SJWXMNUTKFSFXXJYXZGXYFSYNFQQ^[JXY\NYMYMJQJXXTWFWJWJHTLSNXJIFX TUJWFYNSLQJFXJX1JFXJWJSYFQXFWJWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSIQTXXTSXYWFNLMYQNSJGFXNXT[JWYMJYJWRTKYMJQJFXJZSQJXXYMJ UF^RJSYXYTYMJQJXXTWFWJXYWZHYZWJIYTNSHWJFXJNSQNSJ\NYMJ]UJHYJILJSJWFQNSÂFYNTSYTHTRUJSXFYJKTWYMJQJXXTW¸XJ]UJHYJINSÂFYNTSFW^ HTXYNSHWJFXJX

160

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

Interest income 

+TWFQQÁSFSHNFQNSXYWZRJSYXRJFXZWJIFYFRTWYNXJIHTXYNSYJWJXYNSHTRJNXWJHTWIJIZXNSLYMJJKKJHYN[JNSYJWJXYWFYJ *.7\MNHMNXYMJ WFYJYMFYJ]FHYQ^INXHTZSYXYMJJXYNRFYJIKZYZWJHFXMUF^RJSYXTWWJHJNUYXYMWTZLMYMJJ]UJHYJIQNKJTKYMJÁSFSHNFQNSXYWZRJSYTWFXMTWYJW UJWNTI\MJWJFUUWTUWNFYJYTYMJSJYHFWW^NSLFRTZSYTKYMJÁSFSHNFQFXXJY.SYJWJXYNSHTRJNXNSHQZIJINSÁSFSHJNSHTRJNSYMJXYFYJRJSY TKUWTÁYFSIQTXX

,TWSV`LLILULÂ[Z! 

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7JRJFXZWJRJSYXHTRUWNXNSLTKFHYZFWNFQLFNSXFSIQTXXJXYMJJKKJHYTKYMJFXXJYHJNQNSLFSIYMJWJYZWSTSUQFSFXXJYXJ]HQZINSLFRTZSYX NSHQZIJINSSJYNSYJWJXYTSYMJSJYIJÁSJIGJSJÁYQNFGNQNY^ FXXJYFWJWJHTLSNXJINRRJINFYJQ^NSYMJGFQFSHJXMJJY\NYMFHTWWJXUTSINSL IJGNY TW HWJINY YMWTZLM TYMJW HTRUWJMJSXN[J NSHTRJ NS YMJ UJWNTI NS \MNHM YMJ^ THHZW 7JRJFXZWJRJSYX FWJ STY WJHQFXXNÁJI YT YMJ XYFYJRJSYTKUWTÁYFSIQTXXNSXZGXJVZJSYUJWNTIX5FXYXJW[NHJHTXYNXWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSIQTXXNSYMJUJWNTITKUQFS FRJSIRJSY



3JYNSYJWJXYNXHFQHZQFYJIG^FUUQ^NSLYMJINXHTZSYWFYJYTYMJSJYIJÁSJIGJSJÁYQNFGNQNY^TWFXXJY



9MJ,WTZUWJHTLSNXJXYMJKTQQT\NSLHMFSLJXNSYMJSJYIJÁSJIGJSJÁYTGQNLFYNTSZSIJWJRUQT^JJGJSJÁYJ]UJSXJXNSYMJXYFYJRJSYTK UWTÁYFSIQTXX ‰

8JW[NHJHTXYXHTRUWNXNSLHZWWJSYXJW[NHJHTXYXUFXYXJW[NHJHTXYXLFNSXFSIQTXXJXTSHZWYFNQRJSYXFSISTSWTZYNSJXJYYQJRJSYX

‰

3JYNSYJWJXYJ]UJSXJTWNSHTRJ

3VUN[LYTLTWSV`LLILULÂ[Z 

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9JWRNSFYNTSGJSJÁYXFWJWJHTLSNXJIFXFSJ]UJSXJNSYMJUJWNTINS\MNHMYMJ^FWJNSHZWWJI

3.11 Borrowing costs: F

'TWWT\NSLHTXYXYMFYFWJFYYWNGZYFGQJYTYMJFHVZNXNYNTSHTSXYWZHYNTSTWUWTIZHYNTSTKFVZFQNK^NSLFXXJYFWJHFUNYFQNXJIFXFUFWYTKYMJ HTXYTKXZHMFXXJYYNQQXZHMYNRJYMJFXXJYNXWJFI^KTWNYXNSYJSIJIZXJTWXFQJ&VZFQNK^NSLFXXJYNXFSFXXJYYMFYSJHJXXFWNQ^WJVZNWJX FXZGXYFSYNFQUJWNTITKYNRJ LJSJWFQQ^T[JWY\JQ[JRTSYMXYTLJYWJFI^KTWNYXNSYJSIJIZXJTWXFQJ

G &QQTYMJWGTWWT\NSLHTXYXFWJWJHTLSNXJIFXJ]UJSXJNSYMJUJWNTINS\MNHMYMJ^FWJNSHZWWJI 3.12 Segment accounting: 

9MJ (MNJK 4UJWFYNTSFQ )JHNXNTS 2FPJW RTSNYTWX YMJ TUJWFYNSL WJXZQYX TK NYX GZXNSJXX 8JLRJSYX XJUFWFYJQ^ KTW YMJ UZWUTXJ TK RFPNSL IJHNXNTSXFGTZYWJXTZWHJFQQTHFYNTSFSIUJWKTWRFSHJFXXJXXRJSY8JLRJSYUJWKTWRFSHJNXJ[FQZFYJIGFXJITSUWTÁYFSIQTXXFSINX RJFXZWJIHTSXNXYJSYQ^\NYMUWTÁYFSIQTXXNSYMJÁSFSHNFQXYFYJRJSYX



9MJ4UJWFYNSLXJLRJSYXMF[JGJJSNIJSYNÁJITSYMJGFXNXTKYMJSFYZWJTKUWTIZHYXXJW[NHJX 

8JLRJSYWJ[JSZJNSHQZIJXXFQJXFSITYMJWNSHTRJINWJHYQ^NIJSYNÁFGQJ\NYMFQQTHFGQJYTYMJXJLRJSYNSHQZINSLNSYJWXJLRJSYWJ[JSZJ



*]UJSXJXYMFYFWJINWJHYQ^NIJSYNÁFGQJ\NYMFQQTHFGQJYTXJLRJSYXFWJHTSXNIJWJIKTWIJYJWRNSNSLYMJXJLRJSYWJXZQY*]UJSXJX\MNHM WJQFYJYTYMJ,WTZUFXF\MTQJFSISTYFQQTHFGQJYTXJLRJSYXFWJNSHQZIJIZSIJWZSFQQTHFGQJJ]UJSINYZWJ FINANCIALS

161


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



.SHTRJ\MNHMWJQFYJXYTYMJ,WTZUFXF\MTQJFSISTYFQQTHFGQJYTXJLRJSYXNXNSHQZIJINSZSFQQTHFGQJNSHTRJ



8JLRJSYWJXZQYNSHQZIJXRFWLNSXTSNSYJWXJLRJSYXFQJX\MNHMFWJWJIZHJINSFWWN[NSLFYYMJUWTÁYGJKTWJYF]TKYMJ,WTZU



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Inter-Segment transfer pricing: 

8JLRJSYWJ[JSZJWJXZQYNSLKWTRYWFSXFHYNTSX\NYMTYMJWGZXNSJXXXJLRJSYXNXFHHTZSYJITSYMJGFXNXTKYWFSXKJWUWNHJFLWJJIGJY\JJSYMJ XJLRJSYX8ZHMYWFSXKJWUWNHJXFWJJNYMJWIJYJWRNSJIYT^NJQIFIJXNWJIRFWLNSTWFLWJJITSFSJLTYNFYJIGFXNX

3.13 Leases: 

9MJIJYJWRNSFYNTSTK\MJYMJWFSFWWFSLJRJSYNXTWHTSYFNSXFQJFXJNXGFXJITSYMJXZGXYFSHJTKYMJFWWFSLJRJSYFYYMJNSHJUYNTSIFYJ \MJYMJWKZQÁQRJSYTKYMJFWWFSLJRJSYNXIJUJSIJSYTSYMJZXJTKFXUJHNÁHFXXJYTWFXXJYXTWYMJFWWFSLJRJSYHTS[J^XFWNLMYYTZXJYMJ FXXJYJ[JSNKYMFYWNLMYNXSTYJ]UQNHNYQ^XUJHNÁJINSFSFWWFSLJRJSY



+NSFSHJQJFXJXYMFYYWFSXKJWXZGXYFSYNFQQ^FQQTKYMJWNXPXFSIGJSJÁYXNSHNIJSYFQYTT\SJWXMNUTKYMJQJFXJINYJRFWJHFUNYFQNXJIFYYMJ HTRRJSHJRJSYTKYMJQJFXJFYYMJKFNW[FQZJTKYMJQJFXJIUWTUJWY^TWNKQT\JWFYYMJUWJXJSY[FQZJTKYMJRNSNRZRQJFXJUF^RJSYX1JFXJ UF^RJSYXFWJFUUTWYNTSJIGJY\JJSÁSFSHJHMFWLJXFSIFWJIZHYNTSNSYMJQJFXJQNFGNQNY^XTFXYTFHMNJ[JFHTSXYFSYWFYJTKNSYJWJXYTSYMJ WJRFNSNSLGFQFSHJTKYMJQNFGNQNY^+NSFSHJHMFWLJXFWJWJHTLSNXJINSÁSFSHJHTXYXNSYMJXYFYJRJSYTKUWTÁYFSIQTXX



& QJFXJI FXXJY NX IJUWJHNFYJI T[JW YMJ ZXJKZQ QNKJ TK YMJ FXXJY -T\J[JW NK YMJWJ NX ST WJFXTSFGQJ HJWYFNSY^ YMFY YMJ ,WTZU \NQQ TGYFNS T\SJWXMNUG^YMJJSITKYMJQJFXJYJWRYMJFXXJYNXIJUWJHNFYJIT[JWYMJXMTWYJWTKYMJJXYNRFYJIZXJKZQQNKJTKYMJFXXJYFSIYMJQJFXJYJWR



&XXJYX FHVZNWJI TS QJFXJX \MJWJ F XNLSNÁHFSY UTWYNTS TK YMJ WNXPX FSI WJ\FWIX TK T\SJWXMNU FWJ WJYFNSJI G^ QJXXTW FWJ HQFXXNÁJI FX TUJWFYNSLQJFXJX1JFXJWJSYFQXFWJHMFWLJIYTYMJXYFYJRJSYTKUWTÁYFSIQTXXTSXYWFNLMYQNSJGFXNXT[JWYMJYJWRTKYMJQJFXJZSQJXX XZHMUF^RJSYXFWJXYWZHYZWJIYTNSHWJFXJNSQNSJ\NYMJ]UJHYJILJSJWFQNSÂFYNTSYTHTRUJSXFYJKTWYMJQJXXTW¸XJ]UJHYJINSÂFYNTSFW^HTXY NSHWJFXJX

3.14 Earnings per share: 

'FXNHJFWSNSLXUJWXMFWJNXHFQHZQFYJIG^IN[NINSLYMJUWTÁYKWTRHTSYNSZNSLTUJWFYNTSXINXHTSYNSZJITUJWFYNTSXFSIYTYFQUWTÁYFYYWNGZYFGQJ YTJVZNY^XMFWJMTQIJWXTKYMJ(TRUFS^G^YMJ\JNLMYJIF[JWFLJSZRGJWTKJVZNY^XMFWJXTZYXYFSINSLIZWNSLYMJUJWNTI

3.15 Taxes on income: 

9F]TSNSHTRJKTWYMJHZWWJSYUJWNTINXIJYJWRNSJITSYMJGFXNXTKJXYNRFYJIYF]FGQJNSHTRJFSIYF]HWJINYXHTRUZYJINSFHHTWIFSHJ \NYMYMJUWT[NXNTSXTKYMJWJQJ[FSYYF]QF\XFSIGFXJITSYMJJ]UJHYJITZYHTRJTKFXXJXXRJSYXFUUJFQX



(ZWWJSYNSHTRJYF]WJQFYNSLYTNYJRXWJHTLSNXJIINWJHYQ^NSJVZNY^NXWJHTLSNXJINSJVZNY^FSISTYNSYMJXYFYJRJSYTKUWTÁYFSIQTXX 2FSFLJRJSYUJWNTINHFQQ^J[FQZFYJXUTXNYNTSXYFPJSNSYMJYF]WJYZWSX\NYMWJXUJHYYTXNYZFYNTSXNS\MNHMFUUQNHFGQJYF]WJLZQFYNTSXFWJ XZGOJHYYTNSYJWUWJYFYNTSFSIJXYFGQNXMJXUWT[NXNTSX\MJWJFUUWTUWNFYJ

Deferred tax 

)JKJWWJIYF]NXUWT[NIJIZXNSLYMJGFQFSHJXMJJYFUUWTFHMTSYJRUTWFW^INKKJWJSHJXFYYMJWJUTWYNSLIFYJGJY\JJSYMJYF]GFXJXTKFXXJYX FSIQNFGNQNYNJXFSIYMJNWHFWW^NSLFRTZSYXKTWÁSFSHNFQWJUTWYNSLUZWUTXJXFYYMJWJUTWYNSLIFYJ



)JKJWWJIYF]QNFGNQNYNJXFWJWJHTLSNXJIKTWFQQYF]FGQJYJRUTWFW^INKKJWJSHJXJ]HJUY





162

‰

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‰

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‰

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CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



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3.16 Provisions, Contingent liabilities, Contingent assets and Commitments: General 

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3.17 Government grants: Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be HTRUQNJI\NYM 

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FINANCIALS

163


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



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3.18 Exceptional items: 

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3.19 Business combinations and goodwill: 

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3.20 Investment in associates and joint ventures:

164



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CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



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&KYJWFUUQNHFYNTSTKYMJJVZNY^RJYMTIYMJ,WTZUIJYJWRNSJX\MJYMJWNYNXSJHJXXFW^YTWJHTLSNXJFSNRUFNWRJSYQTXXTSNYXNS[JXYRJSYNS NYXFXXTHNFYJTWFOTNSY[JSYZWJ&YJFHMWJUTWYNSLIFYJYMJ,WTZUIJYJWRNSJX\MJYMJWYMJWJNXTGOJHYN[JJ[NIJSHJYMFYYMJNS[JXYRJSYNSYMJ FXXTHNFYJNXNRUFNWJI.KYMJWJNXXZHMJ[NIJSHJYMJ,WTZUHFQHZQFYJXYMJFRTZSYTKNRUFNWRJSYFXYMJINKKJWJSHJGJY\JJSYMJWJHT[JWFGQJ FRTZSYTKYMJFXXTHNFYJFSINYXHFWW^NSL[FQZJFSIYMJSWJHTLSNXJXYMJQTXXFX·8MFWJTKUWTÁYTKFSFXXTHNFYJTWFOTNSY[JSYZWJ¸NSYMJ XYFYJRJSYTKUWTÁYFSIQTXX

*\YYLU[HUKUVUJ\YYLU[JSHZZPÂJH[PVU! 

9MJ,WTZUUWJXJSYXFXXJYXFSIQNFGNQNYNJXNSYMJGFQFSHJXMJJYGFXJITSHZWWJSYSTSHZWWJSYHQFXXNÁHFYNTS



&SFXXJYFXHZWWJSY\MJSNYNX ‰

*]UJHYJIYTGJWJFQNXJITWNSYJSIJIYTGJXTQITWHTSXZRJINSSTWRFQTUJWFYNSLH^HQJ

‰

-JQIUWNRFWNQ^KTWYMJUZWUTXJTKYWFINSL

‰

*]UJHYJIYTGJWJFQNXJI\NYMNSY\JQ[JRTSYMXFKYJWYMJWJUTWYNSLUJWNTI



4W

‰

(FXM TW HFXM JVZN[FQJSY ZSQJXX WJXYWNHYJI KWTR GJNSL J]HMFSLJI TW ZXJI YT XJYYQJ F QNFGNQNY^ KTW FY QJFXY Y\JQ[J RTSYMX FKYJW YMJ WJUTWYNSLUJWNTI



&QQTYMJWFXXJYXFWJHQFXXNÁJIFXSTSHZWWJSY



&QNFGNQNY^NXHZWWJSY\MJS •

It is expected to be settled in normal operating cycle,

‰

.YNXMJQIUWNRFWNQ^KTWYMJUZWUTXJTKYWFINSL

‰

.YNXIZJYTGJXJYYQJI\NYMNSY\JQ[JRTSYMXFKYJWYMJWJUTWYNSLUJWNTI



4W

‰

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)JKJWWJIYF]FXXJYXQNFGNQNYNJXFWJHQFXXNÁJIFXSTSHZWWJSY



&QQTYMJWQNFGNQNYNJXFWJHQFXXNÁJIFXSTSHZWWJSY

3.22 Fair value measurement: 

9MJ,WTZURJFXZWJXÁSFSHNFQNSXYWZRJSYXXZHMFXIJWN[FYN[JXFSIHJWYFNSNS[JXYRJSYXFYKFNW[FQZJFYJFHMGFQFSHJXMJJYIFYJ



+FNW [FQZJ NX YMJ UWNHJ YMFY \TZQI GJ WJHJN[JI YT XJQQ FS FXXJY TW UFNI YT YWFSXKJW F QNFGNQNY^ NS FS TWIJWQ^ YWFSXFHYNTS GJY\JJS RFWPJY UFWYNHNUFSYXFYYMJRJFXZWJRJSYIFYJ9MJKFNW[FQZJRJFXZWJRJSYNXGFXJITSYMJUWJXZRUYNTSYMFYYMJYWFSXFHYNTSYTXJQQYMJFXXJYTW YWFSXKJWYMJQNFGNQNY^YFPJXUQFHJJNYMJW ‰

.SYMJUWNSHNUFQRFWPJYKTWYMJFXXJYTWQNFGNQNY^



4W

‰

.SYMJFGXJSHJTKFUWNSHNUFQRFWPJYNSYMJRTXYFI[FSYFLJTZXRFWPJYKTWYMJFXXJYTWQNFGNQNY^



9MJUWNSHNUFQTWYMJRTXYFI[FSYFLJTZXRFWPJYRZXYGJFHHJXXNGQJG^YMJ,WTZU



9MJKFNW[FQZJTKFSFXXJYTWFQNFGNQNY^NXRJFXZWJIZXNSLYMJFXXZRUYNTSXYMFYRFWPJYUFWYNHNUFSYX\TZQIZXJ\MJSUWNHNSLYMJFXXJYTW QNFGNQNY^FXXZRNSLYMFYRFWPJYUFWYNHNUFSYXFHYNSYMJNWJHTSTRNHGJXYNSYJWJXY



&KFNW[FQZJRJFXZWJRJSYTKFSTSÁSFSHNFQFXXJYYFPJXNSYTFHHTZSYFRFWPJYUFWYNHNUFSY¸XFGNQNY^YTLJSJWFYJJHTSTRNHGJSJÁYXG^ZXNSL YMJFXXJYNSNYXMNLMJXYFSIGJXYZXJTWG^XJQQNSLNYYTFSTYMJWRFWPJYUFWYNHNUFSYYMFY\TZQIZXJYMJFXXJYNSNYXMNLMJXYFSIGJXYZXJ



9MJ,WTZUZXJX[FQZFYNTSYJHMSNVZJXYMFYFWJFUUWTUWNFYJNSYMJHNWHZRXYFSHJXFSIKTW\MNHMXZKÁHNJSYIFYFFWJF[FNQFGQJYTRJFXZWJKFNW [FQZJRF]NRNXNSLYMJZXJTKWJQJ[FSYTGXJW[FGQJNSUZYXFSIRNSNRNXNSLYMJZXJTKZSTGXJW[FGQJNSUZYX



&QQ FXXJYX FSI QNFGNQNYNJX KTW \MNHM KFNW [FQZJ NX RJFXZWJI TW INXHQTXJI NS YMJ ÁSFSHNFQ XYFYJRJSYX FWJ HFYJLTWNXJI \NYMNS YMJ KFNW [FQZJ MNJWFWHM^IJXHWNGJIFXKTQQT\XGFXJITSYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNÁHFSYYTYMJKFNW[FQZJRJFXZWJRJSYFXF\MTQJ

FINANCIALS

165


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

‰

1J[JQ´6ZTYJI ZSFIOZXYJIRFWPJYUWNHJXNSFHYN[JRFWPJYXKTWNIJSYNHFQFXXJYXTWQNFGNQNYNJX

‰

1J[JQ´;FQZFYNTSYJHMSNVZJXKTW\MNHMYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNÁHFSYYTYMJKFNW[FQZJRJFXZWJRJSYNXINWJHYQ^TWNSINWJHYQ^ observable

‰

1J[JQ´;FQZFYNTSYJHMSNVZJXKTW\MNHMYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNÁHFSYYTYMJKFNW[FQZJRJFXZWJRJSYNXZSTGXJW[FGQJ



+TW FXXJYX FSI QNFGNQNYNJX YMFY FWJ WJHTLSNXJI NS YMJ GFQFSHJ XMJJY TS F WJHZWWNSL GFXNX YMJ ,WTZU IJYJWRNSJX \MJYMJW YWFSXKJWX MF[J THHZWWJIGJY\JJSQJ[JQXNSYMJMNJWFWHM^G^WJFXXJXXNSLHFYJLTWNXFYNTS GFXJITSYMJQT\JXYQJ[JQNSUZYYMFYNXXNLSNÁHFSYYTYMJKFNW[FQZJ RJFXZWJRJSYFXF\MTQJFYYMJJSITKJFHMWJUTWYNSLUJWNTI



+TWYMJUZWUTXJTKKFNW[FQZJINXHQTXZWJXYMJ,WTZUMFXIJYJWRNSJIHQFXXJXTKFXXJYXFSIQNFGNQNYNJXTSYMJGFXNXTKYMJSFYZWJHMFWFHYJWNXYNHX FSIWNXPXTKYMJFXXJYTWQNFGNQNY^FSIYMJQJ[JQTKYMJKFNW[FQZJMNJWFWHM^FXJ]UQFNSJIFGT[J

3.23 Non-current assets held for sale and discontinued operations: 

3TSHZWWJSYFXXJYXFSIINXUTXFQLWTZUXFWJHQFXXNÁJIFXMJQIKTWXFQJNKYMJNWHFWW^NSLFRTZSYX\NQQGJWJHT[JWJIUWNSHNUFQQ^YMWTZLMFXFQJ YWFSXFHYNTSWFYMJWYMFSYMWTZLMHTSYNSZNSLZXJ3TSHZWWJSYFXXJYXFSIINXUTXFQLWTZUXHQFXXNÁJIFXMJQIKTWXFQJFWJRJFXZWJIFYYMJ QT\JWTKYMJNWHFWW^NSLFRTZSYFSIKFNW[FQZJQJXXHTXYXYTXJQQ9MNXHTSINYNTSNXWJLFWIJIFXRJYTSQ^\MJSYMJXFQJNXMNLMQ^UWTGFGQJFSI YMJFXXJYTWINXUTXFQLWTZUNXF[FNQFGQJKTWNRRJINFYJXFQJNSNYXUWJXJSYHTSINYNTS2FSFLJRJSYRZXYGJHTRRNYYJIYTYMJXFQJ\MNHM XMTZQIGJJ]UJHYJIYTVZFQNK^KTWWJHTLSNYNTSFXFHTRUQJYJIXFQJ\NYMNSTSJ^JFWKWTRYMJIFYJTKHQFXXNÁHFYNTS



)NXHTSYNSZJITUJWFYNTSXFWJJ]HQZIJIKWTRYMJWJXZQYXTKHTSYNSZNSLTUJWFYNTSXFSIFWJUWJXJSYJIFXFXNSLQJFRTZSYFXUWTÁYTWQTXXFKYJW YF]KWTRINXHTSYNSZJITUJWFYNTSXNSYMJXYFYJRJSYTKUWTÁYFSIQTXX&QXTHTRUFWFYN[J8YFYJRJSYTKUWTÁYFSIQTXXNXWJUWJXJSYJIFXNKYMJ TUJWFYNTSMFIGJJSINXHTSYNSZJIKWTRYMJXYFWYTKYMJHTRUFWFYN[JUJWNTI



&XXJYXFSIQNFGNQNYNJXHQFXXNÁJIFXMJQIKTWINXUTXFQFWJUWJXJSYJIXJUFWFYJQ^KWTRTYMJWFXXJYXFSIQNFGNQNYNJXNSYMJGFQFSHJXMJJY



&INXUTXFQLWTZUVZFQNÁJXFXINXHTSYNSZJITUJWFYNTSNKNYNXFHTRUTSJSYTKYMJ,WTZUYMFYJNYMJWMFXGJJSINXUTXJITKTWNXHQFXXNÁJIFX MJQIKTWXFQJFSI



‰

7JUWJXJSYXFXJUFWFYJRFOTWQNSJTKGZXNSJXXTWLJTLWFUMNHFQFWJFTKTUJWFYNTSX

‰

.XUFWYTKFXNSLQJHTTWINSFYJIUQFSYTINXUTXJTKFXJUFWFYJRFOTWQNSJTKGZXNSJXXTWLJTLWFUMNHFQFWJFTKTUJWFYNTSX



4W

‰

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3.24 Financial instruments: (i)

Financial assets: Initial recognition and measurement



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166

‰

+NSFSHNFQFXXJYXFYKFNW[FQZJ

Financial assets at amortised cost



<MJWJFXXJYXFWJRJFXZWJIFYKFNW[FQZJLFNSXFSIQTXXJXFWJJNYMJWWJHTLSNXJIJSYNWJQ^NSYMJXYFYJRJSYTKUWTÁYFSIQTXX NJKFNW[FQZJ YMWTZLMUWTÁYTWQTXXTWWJHTLSNXJINSTYMJWHTRUWJMJSXN[JNSHTRJ NJKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJ



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Business model test:9MJTGOJHYN[JTKYMJ,WTZU¸XGZXNSJXXRTIJQNXYTMTQIYMJÁSFSHNFQFXXJYYTHTQQJHYYMJHTSYWFHYZFQHFXM ÂT\X WFYMJWYMFSYTXJQQYMJNSXYWZRJSYUWNTWYTNYXHTSYWFHYZFQRFYZWNY^YTWJFQNXJNYXKFNW[FQZJHMFSLJX

*HZOÃV^JOHYHJ[LYPZ[PJZ[LZ[!9MJHTSYWFHYZFQYJWRXTKYMJÁSFSHNFQFXXJYLN[JWNXJTSXUJHNÁJIIFYJXYTHFXMÂT\XYMFYFWJ XTQJQ^UF^RJSYXTKUWNSHNUFQFSINSYJWJXYTSYMJUWNSHNUFQFRTZSYTZYXYFSINSL

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



&ÁSFSHNFQFXXJYYMFYRJJYXYMJKTQQT\NSLY\THTSINYNTSXNXRJFXZWJIFYKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJZSQJXXYMJ FXXJYNXIJXNLSFYJIFYKFNW[FQZJYMWTZLMUWTÁYFSIQTXXZSIJWYMJKFNW[FQZJTUYNTS •

Business model test: 9MJ ÁSFSHNFQ FXXJY NX MJQI \NYMNS F GZXNSJXX RTIJQ \MTXJ TGOJHYN[J NX FHMNJ[JI G^ GTYM HTQQJHYNSL HTSYWFHYZFQHFXMÂT\XFSIXJQQNSLÁSFSHNFQFXXJYX

*HZOÃV^JOHYHJ[LYPZ[PJZ[LZ[!9MJHTSYWFHYZFQYJWRXTKYMJÁSFSHNFQFXXJYLN[JWNXJTSXUJHNÁJIIFYJXYTHFXMÂT\XYMFYFWJ XTQJQ^UF^RJSYXTKUWNSHNUFQFSINSYJWJXYTSYMJUWNSHNUFQFRTZSYTZYXYFSINSL



*[JS NK FS NSXYWZRJSY RJJYX YMJ Y\T WJVZNWJRJSYX YT GJ RJFXZWJI FY FRTWYNXJI HTXY TW KFNW [FQZJ YMWTZLM TYMJW HTRUWJMJSXN[J NSHTRJFÁSFSHNFQFXXJYNXRJFXZWJIFYKFNW[FQZJYMWTZLMUWTÁYTWQTXXNKITNSLXTJQNRNSFYJXTWXNLSNÁHFSYQ^WJIZHJXFRJFXZWJRJSY TWWJHTLSNYNTSNSHTSXNXYJSH^ XTRJYNRJXWJKJWWJIYTFXFS·FHHTZSYNSLRNXRFYHM¸YMFY\TZQITYMJW\NXJFWNXJKWTRRJFXZWNSLFXXJYX TWQNFGNQNYNJXTWWJHTLSNXNSLYMJLFNSXFSIQTXXJXTSYMJRTSINKKJWJSYGFXJX



&QQTYMJWÁSFSHNFQFXXJYXFWJRJFXZWJIFYKFNW[FQZJYMWTZLMUWTÁYTWQTXX



&QQJVZNY^NS[JXYRJSYXFWJRJFXZWJIFYKFNW[FQZJNSYMJGFQFSHJXMJJY\NYM[FQZJHMFSLJXWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSI QTXXJ]HJUYKTWYMTXJJVZNY^NS[JXYRJSYXKTW\MNHMYMJJSYNY^MFXJQJHYJIYTUWJXJSY[FQZJHMFSLJXNS·TYMJWHTRUWJMJSXN[JNSHTRJ¸



.KFSJVZNY^NS[JXYRJSYNXSTYMJQIKTWYWFINSLFSNWWJ[THFGQJJQJHYNTSNXRFIJFYNSNYNFQWJHTLSNYNTSYTRJFXZWJNYFYKFNW[FQZJYMWTZLM TYMJWHTRUWJMJSXN[JNSHTRJ\NYMTSQ^IN[NIJSINSHTRJWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSIQTXX Derecognition



&ÁSFSHNFQFXXJY TW\MJWJFUUQNHFGQJFUFWYTKFÁSFSHNFQFXXJYTWUFWYTKFLWTZUTKXNRNQFWÁSFSHNFQFXXJYXNXUWNRFWNQ^IJWJHTLSNXJI NJWJRT[JIKWTRYMJ,WTZU¸XHTSXTQNIFYJIGFQFSHJXMJJY\MJS ‰

9MJWNLMYXYTWJHJN[JHFXMÂT\XKWTRYMJFXXJYMF[JJ]UNWJITW

‰

9MJ,WTZUMFXYWFSXKJWWJINYXWNLMYXYTWJHJN[JHFXMÂT\XKWTRYMJFXXJYTWMFXFXXZRJIFSTGQNLFYNTSYTUF^YMJWJHJN[JIHFXM ÂT\XNSKZQQ\NYMTZYRFYJWNFQIJQF^YTFYMNWIUFWY^ZSIJWF·UFXXYMWTZLM¸FWWFSLJRJSYFSIJNYMJW



F 9MJ,WTZUMFXYWFSXKJWWJIXZGXYFSYNFQQ^FQQYMJWNXPXFSIWJ\FWIXTKYMJFXXJYTW



G 9MJ,WTZUMFXSJNYMJWYWFSXKJWWJISTWWJYFNSJIXZGXYFSYNFQQ^FQQYMJWNXPXFSIWJ\FWIXTKYMJFXXJYGZYMFXYWFSXKJWWJIHTSYWTQ  TKYMJFXXJY



<MJS YMJ ,WTZU MFX YWFSXKJWWJI NYX WNLMYX YT WJHJN[J HFXM ÂT\X KWTR FS FXXJY TW MFX JSYJWJI NSYT F UFXXYMWTZLM FWWFSLJRJSY NYJ[FQZFYJXNKFSIYT\MFYJ]YJSYNYMFXWJYFNSJIYMJWNXPXFSIWJ\FWIXTKT\SJWXMNU<MJSNYMFXSJNYMJWYWFSXKJWWJISTWWJYFNSJI XZGXYFSYNFQQ^ FQQ TK YMJ WNXPX FSI WJ\FWIX TK YMJ FXXJY STW YWFSXKJWWJI HTSYWTQ TK YMJ FXXJY YMJ ,WTZU HTSYNSZJX YT WJHTLSNXJ YMJ YWFSXKJWWJIFXXJYYTYMJJ]YJSYTKYMJ,WTZU¸XHTSYNSZNSLNS[TQ[JRJSY.SYMFYHFXJYMJ,WTZUFQXTWJHTLSNXJXFSFXXTHNFYJIQNFGNQNY^ 9MJYWFSXKJWWJIFXXJYFSIYMJFXXTHNFYJIQNFGNQNY^FWJRJFXZWJITSFGFXNXYMFYWJÂJHYXYMJWNLMYXFSITGQNLFYNTSXYMFYYMJ,WTZUMFX WJYFNSJI



(TSYNSZNSLNS[TQ[JRJSYYMFYYFPJXYMJKTWRTKFLZFWFSYJJT[JWYMJYWFSXKJWWJIFXXJYNXRJFXZWJIFYYMJQT\JWTKYMJTWNLNSFQHFWW^NSL FRTZSYTKYMJFXXJYFSIYMJRF]NRZRFRTZSYTKHTSXNIJWFYNTSYMFYYMJ,WTZUHTZQIGJWJVZNWJIYTWJUF^ 0TWHPYTLU[VMÂUHUJPHSHZZL[Z







9MJ,WTZUFXXJXXJXNRUFNWRJSYGFXJITSJ]UJHYJIHWJINYQTXXJX *(1RTIJQYTYMJKTQQT\NSL •

Financial assets measured at amortised cost; and

‰

+NSFSHNFQFXXJYXRJFXZWJIFYKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJ +;94(.

*]UJHYJIHWJINYQTXXJXFWJRJFXZWJIYMWTZLMFQTXXFQQT\FSHJFYFSFRTZSYJVZFQYT ‰

9MJRTSYMJ]UJHYJIHWJINYQTXXJX J]UJHYJIHWJINYQTXXJXYMFYWJXZQYKWTRYMTXJIJKFZQYJ[JSYXTSYMJÁSFSHNFQNSXYWZRJSYYMFY FWJUTXXNGQJ\NYMNSRTSYMXFKYJWYMJWJUTWYNSLIFYJ TW

‰

+ZQQQNKJYNRJJ]UJHYJIHWJINYQTXXJX J]UJHYJIHWJINYQTXXJXYMFYWJXZQYKWTRFQQUTXXNGQJIJKFZQYJ[JSYXT[JWYMJQNKJTKYMJÁSFSHNFQ NSXYWZRJSY

9MJ,WTZUKTQQT\X·XNRUQNÁJIFUUWTFHM¸KTWWJHTLSNYNTSTKNRUFNWRJSYQTXXFQQT\FSHJTS •

Trade receivables or contract revenue receivables; and

All lease receivables



:SIJWYMJXNRUQNÁJIFUUWTFHMYMJ,WTZUITJXSTYYWFHPHMFSLJXNSHWJINYWNXP7FYMJWNYWJHTLSNXJXNRUFNWRJSYQTXXFQQT\FSHJGFXJI TSQNKJYNRJ*(1XFYJFHMWJUTWYNSLIFYJWNLMYKWTRNYXNSNYNFQWJHTLSNYNTS



9MJ,WTZUZXJXFUWT[NXNTSRFYWN]YTIJYJWRNSJNRUFNWRJSYQTXXFQQT\FSHJTSYMJUTWYKTQNTTKYWFIJWJHJN[FGQJX9MJUWT[NXNTSRFYWN] NXGFXJITSNYXMNXYTWNHFQQ^TGXJW[JIIJKFZQYWFYJXT[JWYMJJ]UJHYJIQNKJTKYMJYWFIJWJHJN[FGQJFSINXFIOZXYJIKTWKTW\FWIQTTPNSL JXYNRFYJX&YJ[JW^WJUTWYNSLIFYJYMJMNXYTWNHFQTGXJW[JIIJKFZQYWFYJXFWJZUIFYJIFSIHMFSLJXNSYMJKTW\FWIQTTPNSLJXYNRFYJXFWJ FSFQ^XJI

FINANCIALS

167


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)



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(ii)

Financial liabilities: Initial recognition and measurement



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168

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

3. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

P] +LYP]H[P]LÂUHUJPHSPUZ[Y\TLU[ZHUKOLKNLHJJV\U[PUN! 

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FINANCIALS

169


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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‰

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‰

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‰

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‰

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‰

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170

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (Contd.)

Estimates and assumptions  9MJ PJ^ FXXZRUYNTSX HTSHJWSNSL YMJ KZYZWJ FSI TYMJW PJ^ XTZWHJX TK JXYNRFYNTS ZSHJWYFNSY^ FY YMJ WJUTWYNSL IFYJ YMFY MF[J F XNLSNÁHFSY WNXPTKHFZXNSLFRFYJWNFQFIOZXYRJSYYTYMJHFWW^NSLFRTZSYXTKFXXJYXFSIQNFGNQNYNJX\NYMNSYMJSJ]YÁSFSHNFQ^JFWFWJIJXHWNGJIGJQT\9MJ ,WTZU GFXJI NYX FXXZRUYNTSX FSI JXYNRFYJX TS UFWFRJYJWX F[FNQFGQJ \MJS YMJ HTSXTQNIFYJI ÁSFSHNFQ XYFYJRJSYX \JWJ UWJUFWJI *]NXYNSL HNWHZRXYFSHJXFSIFXXZRUYNTSXFGTZYKZYZWJIJ[JQTURJSYXMT\J[JWRF^HMFSLJIZJYTRFWPJYHMFSLJXTWHNWHZRXYFSHJXFWNXNSLYMFYFWJ GJ^TSIYMJHTSYWTQTKYMJ,WTZU8ZHMHMFSLJXFWJWJÂJHYJINSYMJFXXZRUYNTSX\MJSYMJ^THHZW  0TWHPYTLU[VMUVUÂUHUJPHSHZZL[Z  9MJ,WTZUFXXJXXJXFYJFHMWJUTWYNSLIFYJ\MJYMJWYMJWJNXFSNSINHFYNTSYMFYFSFXXJYRF^GJNRUFNWJI.KFS^NSINHFYNTSJ]NXYXTW\MJSFSSZFQ NRUFNWRJSYYJXYNSLKTWFSFXXJYNXWJVZNWJIYMJ,WTZUJXYNRFYJXYMJFXXJY¸XWJHT[JWFGQJFRTZSY&SFXXJY¸XWJHT[JWFGQJFRTZSYNXYMJMNLMJW TKFSFXXJY¸XTW(,:¸XKFNW[FQZJQJXXHTXYXTKINXUTXFQFSINYX[FQZJNSZXJ.YNXIJYJWRNSJIKTWFSNSIN[NIZFQFXXJYZSQJXXYMJFXXJYITJXSTY LJSJWFYJHFXMNSÂT\XYMFYFWJQFWLJQ^NSIJUJSIJSYTKYMTXJKWTRTYMJWFXXJYXTWLWTZUXTKFXXJYX<MJWJYMJHFWW^NSLFRTZSYTKFSFXXJYTW (,:J]HJJIXNYXWJHT[JWFGQJFRTZSYYMJFXXJYNXHTSXNIJWJINRUFNWJIFSINX\WNYYJSIT\SYTNYXWJHT[JWFGQJFRTZSY  .SFXXJXXNSL[FQZJNSZXJYMJJXYNRFYJIKZYZWJHFXMÂT\XFWJINXHTZSYJIYTYMJNWUWJXJSY[FQZJZXNSLFUWJYF]INXHTZSYWFYJYMFYWJÂJHYXHZWWJSY RFWPJYFXXJXXRJSYXTKYMJYNRJ[FQZJTKRTSJ^FSIYMJWNXPXXUJHNÁHYTYMJFXXJY.SIJYJWRNSNSLKFNW[FQZJQJXXHTXYXTKINXUTXFQWJHJSYRFWPJY YWFSXFHYNTSXFWJYFPJSNSYTFHHTZSY.KSTXZHMYWFSXFHYNTSXHFSGJNIJSYNÁJIFSFUUWTUWNFYJ[FQZFYNTSRTIJQNXZXJI9MJXJHFQHZQFYNTSXFWJ HTWWTGTWFYJIG^[FQZFYNTSRZQYNUQJXVZTYJIXMFWJUWNHJXKTWUZGQNHQ^YWFIJIXZGXNINFWNJXTWTYMJWF[FNQFGQJKFNW[FQZJNSINHFYTWX  +LÂULKILULÂ[WSHUZ  9MJHTXYTKYMJIJÁSJIGJSJÁYUQFSFSITYMJWUTXYJRUQT^RJSYGJSJÁYXFSIYMJUWJXJSY[FQZJTKXZHMTGQNLFYNTSFWJIJYJWRNSJIZXNSLFHYZFWNFQ [FQZFYNTSX&SFHYZFWNFQ[FQZFYNTSNS[TQ[JXRFPNSL[FWNTZXFXXZRUYNTSXYMFYRF^INKKJWKWTRFHYZFQIJ[JQTURJSYXNSYMJKZYZWJ9MJXJNSHQZIJ YMJIJYJWRNSFYNTSTKYMJINXHTZSYWFYJKZYZWJXFQFW^NSHWJFXJXRTWYFQNY^WFYJXFSIKZYZWJUJSXNTSNSHWJFXJX)ZJYTYMJHTRUQJ]NYNJXNS[TQ[JI NSYMJ[FQZFYNTSFSINYXQTSLYJWRSFYZWJFIJÁSJIGJSJÁYTGQNLFYNTSNXMNLMQ^XJSXNYN[JYTHMFSLJXNSYMJXJFXXZRUYNTSX&QQFXXZRUYNTSXFWJ WJ[NJ\JIFYJFHMWJUTWYNSLIFYJ  -HPY]HS\LTLHZ\YLTLU[VMÂUHUJPHSPUZ[Y\TLU[Z  <MJSYMJKFNW[FQZJXTKÁSFSHNFQFXXJYXFSIÁSFSHNFQQNFGNQNYNJXWJHTWIJINSYMJGFQFSHJXMJJYHFSSTYGJRJFXZWJIGFXJITSVZTYJIUWNHJXNS FHYN[JRFWPJYXYMJNWKFNW[FQZJNXRJFXZWJIZXNSL[FQZFYNTSYJHMSNVZJXNSHQZINSLYMJ)NXHTZSYJI(FXM+QT\ )(+RTIJQ9MJNSUZYXYTYMJXJ RTIJQXFWJYFPJSKWTRTGXJW[FGQJRFWPJYX\MJWJUTXXNGQJGZY\MJWJYMNXNXSTYKJFXNGQJFIJLWJJTKOZILJRJSYNXWJVZNWJINSJXYFGQNXMNSLKFNW [FQZJX/ZILJRJSYXNSHQZIJHTSXNIJWFYNTSXTKNSUZYXXZHMFXQNVZNINY^WNXPHWJINYWNXPFSI[TQFYNQNY^(MFSLJXNSFXXZRUYNTSXFGTZYYMJXJKFHYTWX HTZQIFKKJHYYMJWJUTWYJIKFNW[FQZJTKÁSFSHNFQNSXYWZRJSYX  (TSYNSLJSY HTSXNIJWFYNTS WJXZQYNSL KWTR GZXNSJXX HTRGNSFYNTSX NX [FQZJI FY KFNW [FQZJ FY YMJ FHVZNXNYNTS IFYJ FX UFWY TK YMJ GZXNSJXX HTRGNSFYNTS<MJSYMJHTSYNSLJSYHTSXNIJWFYNTSRJJYXYMJIJÁSNYNTSTKFÁSFSHNFQQNFGNQNY^NYNXXZGXJVZJSYQ^WJRJFXZWJIYTKFNW[FQZJFYJFHM WJUTWYNSLIFYJ9MJIJYJWRNSFYNTSTKYMJKFNW[FQZJNXGFXJITSINXHTZSYJIHFXMÂT\X9MJPJ^FXXZRUYNTSXYFPJNSYTHTSXNIJWFYNTSFWJYMJ UWTGFGNQNY^TKRJJYNSLJFHMUJWKTWRFSHJYFWLJYFSIYMJINXHTZSYKFHYTW Development costs  9MJ ,WTZU HFUNYFQNXJX IJ[JQTURJSY HTXYX KTW F UWTOJHY NS FHHTWIFSHJ \NYM YMJ FHHTZSYNSL UTQNH^ .SNYNFQ HFUNYFQNXFYNTS TK HTXYX NX GFXJI TS RFSFLJRJSY¸XOZILJRJSYYMFYYJHMSTQTLNHFQFSIJHTSTRNHKJFXNGNQNY^NXHTSÁWRJIZXZFQQ^\MJSFUWTIZHYIJ[JQTURJSYUWTOJHYMFXWJFHMJIF IJÁSJIRNQJXYTSJFHHTWINSLYTFSJXYFGQNXMJIUWTOJHYRFSFLJRJSYRTIJQ.SIJYJWRNSNSLYMJFRTZSYXYTGJHFUNYFQNXJIRFSFLJRJSYRFPJX FXXZRUYNTSXWJLFWINSLYMJJ]UJHYJIKZYZWJHFXMLJSJWFYNTSTKYMJUWTOJHYINXHTZSYWFYJXYTGJFUUQNJIFSIYMJJ]UJHYJIUJWNTITKGJSJÁYX  0TWHPYTLU[VMÂUHUJPHSHZZL[Z  9MJ NRUFNWRJSY UWT[NXNTSX KTW ÁSFSHNFQ FXXJYX FWJ GFXJI TS FXXZRUYNTSX FGTZY WNXP TK IJKFZQY FSI J]UJHYJI QTXX WFYJX 9MJ ,WTZU ZXJX judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Group’s past history, existing market HTSINYNTSXFX\JQQFXKTW\FWIQTTPNSLJXYNRFYJXFYYMJJSITKJFHMWJUTWYNSLUJWNTI

FINANCIALS

171


172

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

5.

  3.72     7.28

      -

Less: translation adjustments

9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX

As at 31-03-2016

)JUWJHNFYNTSHMFWLJKTWYMJ^JFW

)NXUTXFQXYWFSXKJWX

Less: translation adjustments

9WFSXKJWWJIYT KWTRINXHTSYNSZJITUJWFYNTSX

As at 31-03-2017

 211.76

&XFY

As at 31-03-2017

Net book value





)NXUTXFQXYWFSXKJWX

201.90







)JUWJHNFYNTSHMFWLJKTWYMJ^JFW





&XFY

Accumulated depreciation:

As at 31-03 2017

9WFSXKJWWJIYT KWTRINXHTSYNSZJITUJWFYNTSX







Additions

)NXUTXFQXYWFSXKJWX

209.18

 

 

As at 31-03-2016



 209.18

 241.54

9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX

211.76



 

Less: translation adjustments

Less: translation adjustments





 





Freehold land

)NXUTXFQXYWFSXKJWX

Additions

&XFY

Cost:

1JFXJMTQI land

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

PROPERTY, PLANT AND EQUIPMENT

NOTES

596.76



131.20









112.40



 







727.96









786.30



 







'ZNQINSLX

335.52



736.30

 







656.82



 







1071.82

 







991.15



 







5QFSYFSI machinery

-



-









9.60











-









14.39











5QFSYFSI machinery leasehold

15.91



34.09









58.94











50.00









81.42



 







Furniture and KNYYNSLX

7.56



39.51









53.20



 







47.07









63.36



 







4KKNHJ JVZNURJSYX

6.88



10.44

 







10.63



 







17.32

 







18.71



 







Vehicles

1376.29



958.82

 







905.31



 







2335.11









2406.05



 







Total

28.18



-

-

28.18









14.23











Capital \TWPNS progress

` crore


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

6. INVESTMENT PROPERTY Cost: &XFY

 

Additions )NXUTXFQXYWFSXKJWX



As at 31-03-2016

-

Additions



)NXUTXFQXYWFSXKJWX



As at 31-03-2017

-

Accumulated depreciation: &XFY



)JUWJHNFYNTSHMFWLJKTWYMJ^JFW



)NXUTXFQXYWFSXKJWX



As at 31-03-2016

-

)JUWJHNFYNTSHMFWLJKTWYMJ^JFW



)NXUTXFQXYWFSXKJWX



As at 31-03-2017

-

Net book value &XFY



As at 31-03-2017

-

Fair value &XFY

NA

As at 31-03-2017

NA





7JSYFQNSHTRJIJWN[JIKWTRNS[JXYRJSYUWTUJWYNJX

-



)NWJHYTUJWFYNSLJ]UJSXJX NSHQZINSLWJUFNWXFSIRFNSYJSFSHJLJSJWFYNSLWJSYFQNSHTRJ

-



7YVÃ&#x201A;[HYPZPUNMYVTPU]LZ[TLU[WYVWLY[PLZ

-



9MJ,WTZU¸XNS[JXYRJSYUWTUJWYNJXHTSXNXYXTKHTRRJWHNFQUWTUJWYNJXNS.SINF





FINANCIALS

173


` crore

NOTES 7.

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

INTANGIBLE ASSETS 'WFSISFRJX and customer lists Cost: &XFY Additions )NXUTXFQXYWFSXKJWX .RUFNWRJSYTKLTTI\NQQ .RUFNRJSYTK.SYFSLNGQJFXXJYZSIJW development Less: Translation adjustments 9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX As at 31-03-2016 Additions )NXUTXFQXYWFSXKJWX .RUFNRJSYTKLTTI\NQQ .RUFNRJSYTK.SYFSLNGQJFXXJYZSIJW development Less: Translation adjustments 9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX As at 31-03-2017 Accumulated amortisation: &XFY &RTWYNXFYNTSHMFWLJKTWYMJ^JFW )NXUTXFQXYWFSXKJWX Less: Translation adjustments 9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX As at 31-03-2016 &RTWYNXFYNTSHMFWLJKTWYMJ^JFW )NXUTXFQXYWFSXKJWX Less: Translation adjustments 9WFSXKJWWJIYTINXHTSYNSZJITUJWFYNTSX As at 31-03-2017 Net book value &XFY As at 31-03-2017

Computer XTKY\FWJ

Trade marks

Technical PST\MT\

Commercial rights

Research and development

Technology

Concession rights

Total

Goodwill

Intangible assets under development

    

    

    

    

    

    

    

    

    

    

    

   612.94   

   101.00   

   136.34   

  130.14   

  43.52   

   342.92   

     

    

   1366.86   

   468.41   

  75.47   

   178.03

    93.08

   -

   79.48

   31.09

   216.90

   -

   -

   598.58

   143.54

   33.30

     245.16     98.18

      69.79      71.22

      50.14     -

     117.39     79.48

     38.71     27.39

      227.16     137.52

          -

         -

      748.35     413.79

 79.85

 21.86

 -

 -

 3.70

 79.38

 -

 -

 184.79

 143.54

 33.30

Impairment testing of goodwill +TWYMJUZWUTXJTKNRUFNWRJSYYJXYNSLLTTI\NQQWJQFYNSLYTHTSYNSZNSLGZXNSJXXXJLRJSYXMFXGJJSFQQTHFYJIYTYMJHFXMLJSJWFYNSLZSNYX (,:XFXKTQQT\X

CGUs /Segments 5T\JW8^XYJRX .SIZXYWNFQ8^XYJRX &ZYTRFYNTS8^XYJRX Total goodwill 1JXX.RUFNWRJSY 1JXX8FQJTK&ZYTRFYNTS'ZXNSJXX Net goodwill

As at 

As at 

61.47 125.68 266.83 453.98 (43.61) (266.83) 143.54

       

,TTI\NQQ NX YJXYJI KTW NRUFNWRJSY TS FSSZFQ GFXNX FSI \MJSJ[JW YMJWJ NX FS NSINHFYNTS YMFY YMJ WJHT[JWFGQJ FRTZSY TK F HFXM LJSJWFYNSL ZSNY NX QJXX YMFS NYXHFWW^NSLFRTZSYGFXJITSFSZRGJWTKKFHYTWXNSHQZINSLGZXNSJXXUQFSTUJWFYNSLWJXZQYXKZYZWJHFXMÂT\XFSIJHTSTRNHHTSINYNTSX9MJWJHT[JWFGQJ FRTZSYTKHFXMLJSJWFYNSLZSNYXNXIJYJWRNSJIGFXJITSMNLMJWTK[FQZJNSZXJFSIKFNW[FQZJQJXXHTXYYTXJQQ+TWYMJUZWUTXJTKNRUFNWRJSYYJXYNSLLTTI\NQQ NXFQQTHFYJIYTF(,:WJUWJXJSYNSLYMJQT\JXYQJ[JQ\NYMNSYMJ,WTZUFY\MNHMLTTI\NQQNXRTSNYTWJIKTWNSYJWSFQRFSFLJRJSYUZWUTXJXFSI\MNHMNXSTYMNLMJW YMFSYMJ,WTZU¸XTUJWFYNSLXJLRJSY 9MJ,WTZULJSJWFQQ^ZXJXINXHTZSYJIHFXMÂT\GFXJIRJYMTIXYTIJYJWRNSJYMJWJHT[JWFGQJFRTZSY9MJXJINXHTZSYJIHFXMÂT\HFQHZQFYNTSXZXJÁ[J^JFW UWTOJHYNTSXYMFYFWJGFXJITSÁSFSHNFQKTWJHFXYX(FXMÂT\UWTOJHYNTSXYFPJNSYTFHHTZSYUFXYJ]UJWNJSHJFSIWJUWJXJSYRFSFLJRJSY¸XGJXYJXYNRFYJFGTZY KZYZWJIJ[JQTURJSYX )NXHTZSYWFYJXWJUWJXJSYYMJHZWWJSYRFWPJYFXXJXXRJSYTKYMJWNXPXXUJHNÁHYTJFHM(,:YFPNSLNSYTHTSXNIJWFYNTSYMJYNRJ[FQZJTKRTSJ^FSIYMJWNXPX XUJHNÁHYTYMJFXXJYKTW\MNHMYMJKZYZWJHFXMÂT\JXYNRFYJXMF[JSTYGJJSFIOZXYJI9MJINXHTZSYWFYJHFQHZQFYNTSNXIJWN[JIKWTR\JNLMYJIF[JWFLJHTXYTK HFUNYFQ <&((TKYMJ(TRUFS^9JWRNSFQ[FQZJLWT\YMWFYJXYFPJNSYTHTSXNIJWFYNTSJ]YJWSFQRFHWTJHTSTRNHXTZWHJXTKIFYFFSINSIZXYW^XUJHNÁHYWJSIX 9MJKTQQT\NSLYFGQJUWJXJSYXYMJPJ^FXXZRUYNTSXZXJIYTIJYJWRNSJ[FQZJNSZXJKFNW[FQZJQJXXHTXYXYTXJQQKTWNRUFNWRJSYYJXYUZWUTXJX

Terminal value growth rate 5WJYF]INXHTZSYWFYJ

As at 

As at 

1% 9.39%





9MJUWJYF]INXHTZSYWFYJ <&((ZXJI  UWJ[NTZX^JFW  3TNRUFNWRJSY\FXNIJSYNÁJIJ]HJUYYMJNRUFNWRJSYTK`HWTWJ UWJ[NTZX^JFW`HWTWJKTWTSJTKYMJ5T\JW:SNYIZJYTJHTSTRNHIT\SYZWS XQT\LWT\YMJYH&SFSFQ^XNXTKYMJHFQHZQFYNTS¸XXJSXNYN[NY^YTFHMFSLJNSYMJPJ^UFWFRJYJWX WJ[JSZJLWT\YMTUJWFYNSLRFWLNSINXHTZSYWFYJFSIQTSLYJWR LWT\YMWFYJGFXJITSWJFXTSFGQ^UWTGFGQJFXXZRUYNTSXINISTYNIJSYNK^FS^UWTGFGQJXHJSFWNTX\MJWJYMJ(,:¸XWJHT[JWFGQJFRTZSY\TZQIKFQQGJQT\NYX HFWW^NSLFRTZSY

174

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

8.

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

As at 

As at 

0.44



15.79



151.80



0.01



8.05



27.83 203.92

 

'TTP[FQZJ

0.44



2FWPJY[FQZJ

0.44



203.48



NON-CURRENT FINANCIAL ASSETS - INVESTMENTS Quoted investments Investment in Government or trust securities Unquoted investments Investment in equity instruments Joint venture Investments in equity instruments (FWWNJIFYKFNW[FQZJYMWTZLMTYMJWHTRUWJMJSXN[JNSHTRJ (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX Investments in debentures or bonds 4YMJWX Other non-current investments 4YMJWX Note: Quoted investments

Unquoted investments 'TTP[FQZJ 8(a) INVESTMENT IN ASSOCIATES A

General information



9MJ,WTZUMFX TKXMFWJMTQINSLNSJVZNY^XMFWJHFUNYFQTK8FZIN5T\JW9WFSXKTWRJWX(T1YI 859(859(¸XUWNSHNUFQUQFHJTKGZXNSJXXNX0NSLITRTK 8FZIN&WFGNF



9MJ,WTZUMFX TKXMFWJMTQINSLNSJVZNY^XMFWJHFUNYFQTK(,.SYJWSFYNTSFQ'[9W (TSY5[Y(T11( JFWQNJWPST\SFX5FZ\JQX2NIIQJ*FXY9WFINSL  (TSYWFHYNSL5[Y(T11(.YXUWNSHNUFQUQFHJTKGZXNSJXXNX:SNYJI&WFG*RNWFYJX

)

:\TTHYPZLKĂ&#x201A;UHUJPHSPUMVYTH[PVUVM[OLHZZVJPH[LZ As at  Current assets 3TSHZWWJSYFXXJYX

0.01



-



0.12



-



*VZNY^

(0.11)

 

,WTZU XXMFWJTKSJYFXXJYX

(0.06)

 

-



Current liabilities 3TSHZWWJSYQNFGNQNYNJX

Carrying amount of interest in associates 

9MJFGT[JFRTZSYTKJVZNY^NSHQZIJXFHHZRZQFYJIQTXXJXTKYMJFXXTHNFYJXTK`HWTWJ `HWTWJTS\MNHMYMJ,WTZUMFXWJHTLSNXJINYX XMFWJYTYMJJ]YJSYTKHTXYTKNYXNS[JXYRJSYX  Revenue 5WJYF]UWTĂ Y QTXX Income tax expense 5TXYYF]UWTĂ Y QTXX

C

As at 



-



0.06

 

-

 

0.06

 

4YMJWHTRUWJMJSXN[JNSHTRJ

-



Total comprehensive income

0.06

 

,WTZU XXMFWJTKYTYFQHTRUWJMJSXN[JNSHTRJ QTXXrecognisedNSYMJUWTĂ YTWQTXX

-



)N[NIJSIXWJHJN[JIKWTRFXXTHNFYJX

-



As at 

As at 

Capital commitments

-



,WTZU XXMFWJTKHFUNYFQHTRRNYRJSYX

-



Contingent liabilities incurred by the Group in relation to its interest in associates

-



,WTZU XXMFWJTKHTSYNSLJSYQNFGNQNYNJX

-



Contingent liabilities as at the reporting date

FINANCIALS

175


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

8(b) INVESTMENT IN JOINT VENTURE A

General information



9MJ,WTZUMFX TKXMFWJMTQINSLNSJVZNY^XMFWJHFUNYFQTK59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF 595WNRF595WNRF¸XUWNSHNUFQUQFHJTKGZXNSJXXNX .SITSJXNF&XFYXY2FWHMYMJNS[JXYRJSY\FXYWJFYJIFXFXXJYMJQIKTWXFQJ)ZWNSLYMJHZWWJSY^JFWYMJ,WTZUMFXIJHNIJIYTHTSYNSZJ\NYMGZXNSJXXTK 59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF 595WNRFFSIYMJWJKTWJNYMFXGJJSYWJFYJIFXNS[JXYRJSYNSHTSYNSZNSLTUJWFYNTSFXTSXY2FWHM



9MJ,WTZUMFI TKXMFWJMTQINSLNSJVZNY^XMFWJHFUNYFQTK(,1ZH^8\NYHMLJFW1NRNYJI (,1ZH^(,1ZH^¸XUWNSHNUFQUQFHJTKGZXNSJXXNX.SINF)ZWNSL YMJUWJ[NTZX^JFWNS[JXYRJSYXNS(,1ZH^\FXXTQI

)

:\TTHYPZLKĂ&#x201A;UHUJPHSPUMVYTH[PVUVM[OL1VPU[=LU[\YL As at 

0.69



85.94



6.34



3TSHZWWJSYQNFGNQNYNJX

43.71



*VZNY^

36.58



Foreign currency translation impact

(2.86)



,WTZU XXMFWJTKSJYFXXJYX

15.79



Carrying amount of interest in joint venture

15.79







-



Current assets 3TSHZWWJSYFXXJYX Current liabilities

Revenue 5WJYF]UWTĂ Y QTXX

(4.11)



Income tax expense

(1.03)

 

5TXYYF]UWTĂ Y QTXX

(3.08)



4YMJWHTRUWJMJSXN[JNSHTRJ

-



Total comprehensive income

(3.08)



,WTZU XXMFWJTKYTYFQHTRUWJMJSXN[JNSHTRJ

(1.57)



-



As at 

As at 

6.65



6.65







Current income tax (continuing operations)

47.52



Current income tax (discontinued operations)

(7.47)



2NSNRZRFQYJWSFYJYF] HTSYNSZNSLTUJWFYNTSX

(11.83)



7JQFYNSLYTTWNLNSFYNTSFSIWJ[JWXFQTKYJRUTWFW^INKKJWJSHJX HTSYNSZNSLTUJWFYNTSX

(19.09)

 

)N[NIJSIXWJHJN[JIKWTROTNSY[JSYZWJ

9.

As at 

NON-CURRENT FINANCIAL ASSETS - LOANS Unsecured, considered good, unless otherwise stated )JUTXNYX

10. TAXATION 0UJVTL[H_YLSH[LK[VP[LTZJOHYNLKVYJYLKP[LKKPYLJ[S`[VWYVĂ&#x201A;[HUKSVZZK\YPUN[OL`LHY!

Statement of profit and loss

)JKJWWJIYF]J]UJSXJ GJSJĂ Y

7JQFYNSLYTTWNLNSFYNTSFSIWJ[JWXFQTKYJRUTWFW^INKKJWJSHJX INXHTSYNSZJITUJWFYNTSX Total

176

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

(3.38)



5.75




` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

10. TAXATION (Contd.) Income Tax expense 



Reconciliation Profit / (loss) before tax from continuing operations 5WTĂ Y QTXXGJKTWJYF]KWTRINXHTSYNSZJITUJWFYNTSX (JJV\U[PUNWYVĂ&#x201A;[SVZZILMVYLPUJVTL[H_ Applicable tax rate Computed tax expense *]HJUYNTSFQNYJRXSTYHTSXNIJWJIKTWYF]UZWUTXJ .SHTRJSTYHTSXNIJWJIKTWYF]UZWUTXJ *]UJSXJSTYFQQT\JIKTWYF]UZWUTXJ &IINYNTSFQFQQT\FSHJXKTWYF]UZWUTXJ &IINYNTSFQFQQT\FSHJXKTWHFUNYFQLFNS (ZWWJSY^JFWQTXXJXGWTZLMYKTW\FWIQTXXJXTS\MNHMIJKJWWJIYF]STYWJHTLSNXJI Tax paid at lower rate 4YMJWYJRUTWFW^INKKJWJSHJX 0UJVTL[H_L_WLUZLJOHYNLK[V[OLZ[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZ Income tax attributable to continuing operations Income tax attributable to discontinued operations Total

126.59



(611.47)



(484.88)



34.608%



(167.81)

 

15.26



(87.07)

 

9.11



(14.80)

 

-

 

266.83



(1.09)



(14.68) 5.75

  

16.60



(10.85)



5.75



Deferred tax relates to the following: Recognised in statement TKUWTKNYTWQTXX

'FQFSHJXMJJY

*]UJSXJXFQQT\FGQJTSUF^RJSYGFXNX :SZXJIYF]QTXXJXIJUWJHNFYNTS 4YMJWNYJRXLN[NSLWNXJYTYJRUTWFW^INKKJWJSHJX &HHJQJWFYJIIJUWJHNFYNTSKTWYF]UZWUTXJX

As at 

As at 



9.71



1.82

 

14.72



(63.72)

 

38.73



(12.29)



(128.36)

 

95.22

 



Finance lease

-



(1.71)



8JW[NHJHTSHJXXNTSFWWFSLJRJSYX

-



(0.45)



(204.82)

 

6.02



3.88



-



18.63



(2.42)

 

11.83



11.83



(235.68)

  34.30



As at 

As at 

(252.84)

 

+FNW[FQZFYNTSTKUWTUJWY^UQFSYFSIJVZNURJSY 55 * .RUFNWRJSYTKQTFS 5WT[NXNTSKTWQTXXFQQT\FSHJ 2NSNRZRFQYJWSFYJYF] Deferred tax asset / (liability) Net (income) / expense Reconciliation of deferred tax assets / (liabilities) net:

4UJSNSLGFQFSHJFXTKXY&UWNQ 9F]NSHTRJ J]UJSXJIZWNSLYMJUJWNTIWJHTLSNXJINSUWTĂ YTWQTXX 9F]NSHTRJ J]UJSXJIZWNSLYMJUJWNTIWJHTLSNXJINSUWTĂ YTWQTXXKWTRINXHTSYNSZJITUJWFYNTSX )JKJWWJIYF]RNSNRZRFQYJWSFYJYF] )JKJWWJIYF]YWFSXKJWWJITSINXHTSYNSZJITUJWFYNTSX Translation adjustment Closing balance

19.09



3.38

 

11.83



(20.72)



3.58



(235.68)

 

)JKJWWJIYF]FXXJYXMF[JSTYGJJSWJHTLSNXJINSWJXUJHYTKQTXXJXFXYMJ^RF^STYGJZXJIYTTKKXJYYF]FGQJUWTĂ YXJQXJ\MJWJNSYMJ,WTZUYMJ^MF[JFWNXJSNS XZGXNINFWNJXYMFYMF[JGJJSQTXXRFPNSLKTWXTRJYNRJFSIYMJWJFWJSTTYMJWYF]UQFSSNSLTUUTWYZSNYNJXTWTYMJWJ[NIJSHJTKWJHT[JWFGNQNY^NSYMJSJFWKZYZWJ

FINANCIALS

177


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

As at 

As at 

11. NON-CURRENT ASSETS-OTHERS Unsecured, considered good, unless otherwise stated Capital advances 4YMJWX

&XFY

3.21



-



3.21



&XFY

12. INVENTORIES Raw materials &II,TTIXNSYWFSXNY



370.23



18.26 388.49



<TWPNSUWTLWJXXRFSZKFHYZWNSL

272.72



+NSNXMJILTTIXRFSZKFHYZWNSL

128.84



88.83



8YTWJXXUFWJXFSIUFHPNSLRFYJWNFQX

3.19



1TTXJYTTQX

0.03



882.10



8YTHPNSYWFIJ

As at 

As at 

0.98



13. CURRENT FINANCIAL ASSETS-INVESTMENTS Quoted investments Investments in equity instruments (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX Investments in mutual funds (FWWNJIFYKFNW[FQZJYMWTZLMUWTĂ YFSIQTXX

4.24



5.22



'TTP[FQZJ

5.22



2FWPJY[FQZJ

5.22



Note: Quoted investments

&XFY

&XFY

14. TRADE RECEIVABLES Unsecured

Debts overdue for six months Considered good

443.79



(TSXNIJWJIITZGYKZQ

109.83



553.62



Less:&QQT\FSHJKTWITZGYKZQIJGYX



109.83 443.79



1433.36



1877.15



Other debts Considered good

178

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

&XFY

&XFY

15. CASH AND CASH EQUIVALENTS Cash and cash equivalents: Balances with banks: 4SHZWWJSYFHHTZSYX

569.18



4SIJUTXNYFHHTZSYX 7JKJWSTYJGJQT\

155.10

 

724.28 0.21



724.49



Cash on hand

Note: )JUTXNYXTK`HWTWJ 5WJ[NTZX^JFW`HWTWJ\NYMGFSPXMJQIFXRFWLNSRTSJ^TWXJHZWNY^FLFNSXYYMJGTWWT\NSLXLZFWFSYJJXFSITYMJWHTRRNYRJSYX &XFY

&XFY

16. BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS Other balances: Earmarked balances with banks for: Unpaid dividends 4YMJWX



1.29



34.93

Fixed deposits with banks

36.22



-



36.22



9MJWJFWJSTFRTZSYXIZJFSITZYXYFSINSLYTGJHWJINYJIYTYMJ.S[JXYTW*IZHFYNTSFSI5WTYJHYNTS+ZSIFXFYXY2FWHMFSIXY2FWHM

&XFY

&XFY

17. CURRENT FINANCIAL ASSETS - LOANS Unsecured, considered good, unless otherwise stated Advances recoverable in cash or in kind or for value to be received: Considered good



3.08

Security deposits: Considered good (TSXNIJWJIITZGYKZQ

Less: &QQT\FSHJKTWGFIFSIITZGYKZQIJUTXNYX



73.17 0.05



73.22



0.05

 73.17



76.25



As at 

As at 

149.03



7.96



16.29



173.28



18. CURRENT FINANCIAL ASSETS - OTHERS 'FSPIJUTXNYX 7JKJWSTYJGJQT\ 4YMJWĂ SFSHNFQWJHJN[FGQJX )JWN[FYN[JNSXYWZRJSYX



Note: )JUTXNYXTK`HWTWJ 5WJ[NTZX^JFW`HWTWJFWJMJQIFXRFWLNSRTSJ^TWXJHZWNY^FLFNSXYGTWWT\NSLXLZFWFSYJJXTYMJWHTRRNYRJSYXFSIZSIJW QNJS\NYMGFSPX

FINANCIALS

179


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

As at 

As at 

Advance to suppliers

587.23



Advance to other related parties

115.26



5WJUFNIJ]UJSXJX

22.76



)ZJKWTRHZXYTRJWX HTSXYWZHYNTSFSIUWTOJHYWJQFYJIFHYN[NY^

82.54



Insurance receivables

14.04



390.65



1212.48



As at 

As at 

407.60



125.35



125.35



0.00



125.35



19. OTHER CURRENT ASSETS

8YFYZYTW^FSITYMJWWJHJN[FGQJX

20. SHARE CAPITAL Authorised: *VZNY^8MFWJXTK`JFHM 5WJ[NTZX^JFWJVZNY^XMFWJXTK`JFHM Issued: *VZNY^8MFWJXTK`JFHM 5WJ[NTZX^JFWJVZNY^XMFWJXTK`JFHM Subscribed and paid-up: *VZNY^8MFWJXTK`JFHM 5WJ[NTZX^JFWJVZNY^XMFWJXTK`JFHM Forfeited shares: &RTZSYUFNIZUTS*VZNY^8MFWJXTK`JFHM &RTZSYUFNIZU`

Notes: (a) Reconciliation of the number of shares outstanding at the beginning and at the end of the year: Authorised share capital

&XFY

&XFY

No. of Shares

` crore

3TTK8MFWJX

` crore

'FQFSHJFYYMJGJLNSSNSLTKYMJ^JFW

2038000000

407.60





'FQFSHJFYYMJJSITKYMJ^JFW

2038000000

407.60





Issued share capital

&XFY

&XFY

No. of Shares

` crore

3TTK8MFWJX

` crore

'FQFSHJFYYMJGJLNSSNSLTKYMJ^JFW

626788442

125.35





'FQFSHJFYYMJJSITKYMJ^JFW

626788442

125.35





8ZGXHWNGJIFSIUFNIZU

&XFY

&XFY

No. of Shares

` crore

3TTK8MFWJX

` crore

'FQFSHJFYYMJGJLNSSNSLTKYMJ^JFW

626746142

125.35





'FQFSHJFYYMJJSITKYMJ^JFW

626746142

125.35





9MJ(TRUFS^MFXSTYNXXZJIFS^JVZNY^XMFWJXIZWNSLYMJHZWWJSYFSINSYMJUWJ[NTZX^JFW (b) Terms / rights attached to equity shares: 

180

9MJ(TRUFS^MFXTSJHQFXXTKXMFWJHFUNYFQNJJVZNY^XMFWJXMF[NSLKFHJ[FQZJTK`UJWXMFWJ*FHMMTQIJWTKJVZNY^XMFWJNXJSYNYQJIYTTSJ[TYJUJWXMFWJ .SYMJJ[JSYTKQNVZNIFYNTSYMJJVZNY^XMFWJMTQIJWXFWJJQNLNGQJYTWJHJN[JYMJWJRFNSNSLFXXJYXTKYMJ(TRUFS^FKYJWINXYWNGZYNTSTKFQQUWJKJWJSYNFQFRTZSYXNS UWTUTWYNTSYTYMJNWXMFWJMTQINSL

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

20. SHARE CAPITAL (Contd.) (c) Details of shareholders holding more than 5 % shares in the Company:

&XFY

&XFY



3TTK8MFWJX 

57717660





57809500





32820195





As at 

As at 

No. of Shares

3TTK8MFWJX

-



As at 

As at 

No. of Shares

3TTK8MFWJX

14745394



% No. of Shares 34.37 215442496



&[FSYMF-TQINSLX1NRNYJI



7JQNFSHJ(FUNYFQ9WZXYJJ(T1YI&H7JQNFSHJ*VZNY^4UUTWYZSNYNJX+ZSI

9.21



-)+(9WZXYJJ(TRUFS^1NRNYJI-)+(*VZNY^+ZSI

9.22



1NKJ.SXZWFSHJ(TWUTWFYNTSTK.SINF

5.24

(d) There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestment. L (NNYLNH[LU\TILYVMIVU\ZZOHYLZPZZ\LKK\YPUN[OLWLYPVKVMĂ&#x201A;]L`LHYZPTTLKPH[LS`WYLJLKPUN[OLYLWVY[PUNKH[L!

8MFWJXNXXZJIFXKZQQ^UFNIZUGTSZXXMFWJX M (NNYLNH[LU\TILYVMZOHYLZIV\NO[IHJRK\YPUN[OLWLYPVKVMĂ&#x201A;]L`LHYZPTTLKPH[LS`WYLJLKPUN[OLYLWVY[PUNKH[L!

8MFWJXGTZLMYGFHP (g) Aggregate number of shares issued as GDRs

&XFY 9MJ'FSPTK3J\>TWP

% No. of Shares 0.14 882329

&XFY



3TTK8MFWJX 

(h) Dividend paid and proposed: 

(i)

3TIN[NIJSIXMF[JGJJSUWTUTXJIIJHQFWJITWUFNIIZWNSLYMJĂ SFSHNFQ^JFW 5WJ[NTZX^JFW`3NQTWFKYJWYMJĂ SFSHNFQ^JFWGZYGJKTWJ YMJĂ SFSHNFQXYFYJRJSYX\JWJFUUWT[JIKTWNXXZJ   Nature and purpose of reserves: (1) Capital redemption reserve:  (FUNYFQWJIJRUYNTSWJXJW[J\FXHWJFYJITSGZ^GFHPTKXMFWJX&HTRUFS^RF^NXXZJKZQQ^UFNIZUGTSZXXMFWJXYTNYXRJRGJWXTZYTKYMJHFUNYFQ WJIJRUYNTSWJXJW[JFHHTZSY (2) Securities premium account:  8JHZWNYNJXUWJRNZRFHHTZSYNXHWJFYJI\MJSXMFWJXFWJNXXZJIFYUWJRNZR&HTRUFS^RF^NXXZJKZQQ^UFNIZUGTSZXXMFWJXYTNYXRJRGJWXTZYTK YMJXJHZWNYNJXUWJRNZRWJXJW[JFHHTZSYFSIHTRUFS^HFSZXJYMNXWJXJW[JKTWGZ^GFHPTKXMFWJX (3) Capital reserve:  9MJ,WTZUMFIUFNIHJWYFNSIJKJWWJIXFQJXYF]QNFGNQNYNJXNSFHHTWIFSHJ\NYMYMJXHMJRJKTWRZQFYJIG^YMJ8YFYJ,T[JWSRJSYTK2FMFWFXMYWFKTWXZHM TUYNTSFQUWJUF^RJSYX9MJWJXZQYFSYXZWUQZXTK`HWTWJWJUWJXJSYNSLYMJJ]HJXXTKYMJWJHTWIJIQNFGNQNY^T[JWYMJFRTZSYUFNI\FXHWJINYJIYT (FUNYFQWJXJW[J 

)ZWNSLYMJĂ SFSHNFQ^JFWJSIJIXY2FWHMYMJHFUNYFQWJXJW[JTK`HWTWJNXWJHTLSNXJIIZJYTIJRJWLJWTKHTSXZRJWUWTIZHYXXJLRJSY UZWXZFSYYTYMJYWFSXKJWTKFQQFXXJYXFSIQNFGNQNYNJXYTYMJWJXZQYNSLHTRUFS^NJ(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI 7JKJWSTYJ

(4) Statutory reserve:  8YFYZYTW^WJXJW[JWJUWJXJSYXUWTĂ YXXJYFXNIJFXUJWYMJQTHFQXYFYZYTW^WJVZNWJRJSYTKT[JWXJFXXZGXNINFWNJXFSIYMJXFRJNXSTYF[FNQFGQJKTWINXYWNGZYNTS (5) Capital reserve on consolidation:  (FUNYFQWJXJW[JTSHTSXTQNIFYNTSNXTSFHHTZSYTKXZGXNINFWNJXFHVZNWJI (6) Government grant:  ,WFSYXFWJWJHTLSN_JIFXSTSWJUF^FGQJ\MJSYMJWJVZNWJRJSYXJXYFGQNXMJIKTWWJHJN[NSLYMJRFWJRJYFSIFWJWJHTLSN_JIINWJHYQ^NSJVZNY^SJYTK HTWWJXUTSINSLYF]JKKJHY

FINANCIALS

181


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

As at 

As at 

390.61



-



21. NON-CURRENT FINANCIAL LIABILITIES-BORROWINGS Secured loans 9JWRQTFSXKWTRGFSPX`7JKJW3TYJ FGJQT\b +WTRÁSFSHNFQ.SXYNYZYNTSX`7JKJW3TYJ GGJQT\b Unsecured loans 9JWRQTFSXKWTRGFSPX`7JKJW3TYJ IGJQT\b +NSFSHJQJFXJTGQNLFYNTSX`7JKJW3TYJ KFSI LGJQT\b

113.19



-



503.80



Notes: Security created to the extent of: (a) Secured term loans from banks: N 9MJYJWRQTFSTK`HWTWJ FXFY`3NQF[FNQJIG^YMJ(TRUFS^FYFSNSYJWJXYWFYJTK^JFW'FSP¸X2(17 WJXJYTSYMJXYIF^TKYMJRTSYM KFQQNSLFKYJWY\JQ[JHFQJSIFWRTSYMXKWTRYMJIFYJTKWJQJ[FSYIWF\IT\SFSIJ[JW^RTSYMXYMJWJFKYJWUQZXFXUWJFITK UFUF^FGQJRTSYMQ^9MJ QTFSNXWJUF^FGQJ\NYMNSÁ[J^JFWXKWTRYMJIFYJTKINXGZWXJRJSYNJWI&ZLZXYNSXYWZHYZWJIVZFWYJWQ^UF^RJSYX\NYMFRTWFYTWNZRTKRTSYMX 9MJQTFSNXXJHZWJIG^ÁWXYJ]HQZXN[JHMFWLJTSUQFSYFSIRFHMNSJW^FSIRT[JFGQJÁ]JIFXXJYX (ZWWJSYRFYZWNY^UJWYFNSNSLYTYMJXFNIQTFSNX`HWTWJ WJKJWSTYJST NN )ZWNSLYMJ^JFW(,)WN[JX &ZYTRFYNTS,JWRFS^,RG-F[FNQJIFQTFSMF[NSLFSTZYXYFSINSLFRTZSYTK`HWTWJKWTR;<GFSP,RG-9MJQTFSNX WJUF^FGQJNSKTWY^JNLMYJVZFQRTSYMQ^NSXYFQQRJSYXKWTRYMJIWF\IT\SNS)JHJRGJW NNN )ZWNSLYMJ^JFW(,)WN[JX &ZYTRFYNTS,JWRFS^,RG-F[FNQJIFQTFSMF[NSLFSTZYXYFSINSLFRTZSYTK`HWTWJKWTR;<GFSP,RG-9MJQTFSNX WJUF^FGQJNSKTWY^JNLMYJVZFQRTSYMQ^NSXYFQQRJSYXKWTRYMJIWF\IT\SNS/FSZFW^ N[ 9JWRQTFSTK`3NQHWTWJ FXFY`HWTWJ\FXXJHZWJIG^UQJILJT[JW XMFWJXTK?.;LWTZURTWYLFLJTKÁ]JIFXXJYXQTHFYJIFY8UFNS FSILZFWFSYJJIG^YMJ(TRUFS^9MNXQTFSNXWJUFNIIZWNSLYMJ^JFW(ZWWJSY2FYZWNYNJXFXFY`HWTWJNXXMT\SZSIJWSTYJ [ 9JWRQTFSTK`HWTWJ FXFY`HWTWJNXWJUF^FGQJNSKZQQ\NYMNSY\T^JFWXKWTRZYNQN_FYNTSIFYJNJYM2FWHM9MJXFNI TZYXYFSINSLTK`HWTWJNXXMT\SZSIJWHZWWJSYRFYZWNYNJXTKQTSLYJWRIJGY 7JKJW3TYJ [N 9JWRQTFSTK`3NQHWTWJ FXFY`HWTWJ\FXXJHZWJIG^\F^TKÁ]JIFSIÂTFYNSLHMFWLJTSFQQFXXJYXTK(,5T\JW8^XYJRX.WJQFSI1NRNYJI 9MNXQTFSNXWJUFNIIZWNSLYMJ^JFW(ZWWJSYRFYZWNYNJXFXFY`HWTWJ [NN 9JWRQTFSTK`HWTWJ FXFY`HWTWJNXXJHZWJIG^\F^TKÁ]JIFSIÂTFYNSLHMFWLJTSFQQFXXJYXTK(,*QJHYWNH8^XYJRX-ZSLFW^ ?WY7JUF^RJSYTKYMJQTFS\NQQHTRRJSHJKWTR)JHJRGJWFSI\NQQGJWJUF^FGQJNSKTZWJVZFQFSSZFQNSXYFQQRJSYX [NNN9JWRQTFSTK`HWTWJ FXFY`HWTWJNXXJHZWJIG^\F^TKÁ]JIFSIÂTFYNSLHMFWLJTSFQQFXXJYXTK(,5T\JW8^XYJRX'JQLNZR3; FSI(,-TQINSLX'JQLNZR3;7JUF^RJSYTKYMJQTFSMFXHTRRJSHJIKWTRFSI\NQQGJWJUF^FGQJNSKTZWZSJVZFQFSSZFQNSXYFQQRJSYX(ZWWJSY maturity is `(WTWJ FXFY`HWTWJ N] 9JWRQTFSTK`HWTWJ FXFY`HWTWJF[FNQJIG^(,5T\JW:8&.SHNXXJHZWJIG^JSHZRGWFSHJTSQJFXJIJVZNURJSYX(ZWWJSY maturity is `(WTWJ FXFY`HWTWJ ] 9JWRQTFSTK`3NQ FXFY`HWTWJF[FNQJIG^(,2NIIQJ*FXY+?*\FXXJHZWJIG^\F^TK(TWUTWFYJ,ZFWFSYJJLN[JSG^YMJ(TRUFS^9MJ QTFSNXWJUFNIIZWNSLYMJ^JFW I :LJ\YLK[LYTSVHUZMYVTÂUHUJPHSPUZ[P[\[PVUZJVUZPZ[VM[OLMVSSV^PUN! N 8TKYQTFSXTK`3NQHWTWJ FXFY`HWTWJKWTR,T[JWSRJSY2NSNXYW^TK8UFNS9MJQTFSNXWJUFNIIZWNSLYMJ^JFW(ZWWJSYRFYZWNY^FXFY `HWTWJ NN )ZWNSLYMJ^JFWYMJKFHNQNY^TK`HWTWJ FXFY`3NQF[FNQJIG^(,5T\JW8TQZYNTSX1NRNYJIFYFSNSYJWJXYWFYJJVZN[FQJSYYTYMJ'JSHMRFWP 7FYJ '78UWJFI9MJXFNINSYJWJXYWFYJ\NQQGJÁ]JIYNQQYMJRTWFYTWNZRUJWNTIFSI\NQQGJQNSPJIYT'JSHMRFWP7FYJ^JFW-)+('FSP2(177FYJ9MJ XUWJFIXMFQQGJIJÁSJITSYMJIFYJTKÁWXYINXGZWXJRJSYNSFRFSSJWXZHMYMFYYMJFUUQNHFGQJNSYJWJXYWFYJ\TWPXTZYYT UFUF^FGQJRTSYMQ^9MJ WJUF^RJSYTKYMJXFNIQTFS\NQQHTRRJSHJFKYJWRTSYMXKWTRYMJIFYJTKINXGZWXJRJSY TKYTYFQWJUF^RJSY\NQQGJUFNINSSI WI^JFWTKQTFSNS VZFWYJWQ^NSXYFQQRJSYXFSIYMJGFQFSHJ \NQQGJUFNINSYM YM^JFWTKYMJQTFSNSJVZFQVZFWYJWQ^NSXYFQQRJSYX9MJQTFSNXXJHZWJIG^J]HQZXN[JHMFWLJ TSRT[FGQJFSINRRT[FGQJÁ]JIFXXJYXFSI)JRFSI5WTRNXXTW^3TYJ (c) Unsecured Borrowings by way of bonds consist of the following: 

':.1)2NXXTZWNWJ[JSZJGTSIX8JWNJX`HWTWJ FXFY`HWTWJNXWJUF^FGQJNSXJRNFSSZFQNSXYFQQRJSYXRFYZWNSLTS)JHJRGJW Current maturity is `(WTWJ FXFY`HWTWJ

(d) Unsecured term loans from banks consist of the following: N 9MJYJWRQTFSTK`HWTWJ FXFY`3NQF[FNQJIG^YMJ(TRUFS^FYFSNSYJWJXYWFYJTK UFQNSPJIYT'FSP¸X^JFW2(17 +QTFYNSL WFYJ9MJQTFSNXWJUF^FGQJ\NYMNS^JFWXKWTRYMJIFYJTKINXGZWXJRJSYNJYM/ZQ^NSJVZFQVZFWYJWQ^NSXYFQQRJSYX\NYMÁWXYNSXYFQQRJSY XYFWYNSLFKYJWRTSYMXKWTRYMJIFYJTKINXGZWXJRJSY (ZWWJSYRFYZWNY^UJWYFNSNSLYTYMJXFNIQTFSNX`HWTWJWJKJWSTYJST NN 1TSLYJWRQTFSTK`3NQHWTWJ FXFY`HWTWJNXWJUFNIG^\F^TKFXNSLQJNSXYFQQRJSYNS&ZLZXY NNN <TWPNSLKFHNQNY^ZUYT`HWTWJ FXFY`HWTWJNXF[FNQJIG^(,5T\JW:8&.SHYTRJJYNYXQTSLYJWR\TWPNSLHFUNYFQWJVZNWJRJSY 9MNXQTFSNXWJUF^FGQJNS4HYTGJWG^\F^TKGZQQJYUF^RJSYFYYMJJSITKRTSYMXKWTRYMJIFYJTKIWF\IT\S9MJQTFSNXXZUUTWYJIG^HTWUTWFYJ LZFWFSYJJTKYMJ(TRUFS^(ZWWJSYRFYZWNY^NX`(WTWJ FXFY`3NQ (e )ZWNSLYMJ^JFW(,5T\JW8TQZYNTSX1NRNYJINXXZJIZSXJHZWJIWJIJJRFGQJYF]FGQJSTSHTS[JWYNGQJIJGJSYZWJXTK`JFHMFLLWJLFYNSLYT `HWTWJ9MJIJGJSYZWJFRTZSYNXXZUUTWYJIG^HTWUTWFYJLZFWFSYJJTKYMJ(TRUFS^9MJTZYXYFSINSLGFQFSHJTKYMJXFNIIJGJSYZWJXFRTZSYNSLYT `HWTWJNXIZJ\NYMNSTSJ^JFW (f) +NSFSHJQJFXJTGQNLFYNTSXFWJWJUF^FGQJNSJVZFYJIRTSYMQ^NSXYFQQRJSYX )VYYV^PUNZWLY[HPUPUN[VKPZJVU[PU\LKVWLYH[PVUZHYLPUJS\KLK\UKLY[OLOLHK¹3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPÂLKHZOLSKMVYZHSL and discontinued operations’ (Refer Note: 45)

182

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

21. NON-CURRENT FINANCIAL LIABILITIES-BORROWINGS (Contd.) (g) Finance lease: 9MJRNSNRZRQJFXJWJSYFQXFSIYMJUWJXJSY[FQZJTKRNSNRZRQJFXJUF^RJSYXNSWJXUJHYTKFXXJYXFHVZNWJIZSIJWÁSFSHJQJFXJXFWJFXKTQQT\X &XFY 2NSNRZR payments Within one year

&XFY

5WJXJSY[FQZJ TKUF^RJSYX

0.04

2NSNRZR payments

5WJXJSY[FQZJ TKUF^RJSYX

0.04



 

&KYJWTSJ^JFWGZYSTYRTWJYMFSÁ[J^JFWX

-

-



2TWJYMFSÁ[J^JFWX

-







0.04

0.04





Total minimum lease payments Less:FRTZSYXWJUWJXJSYNSLÁSFSHJHMFWLJX

0.00







Present value of minimum lease payments

0.04

0.04





)ZWNSLYMJÁSFSHNFQ^JFWYMJ(TRUFS^MFXRFIJWJFXXJXXRJSYTKFSFWWFSLJRJSYFKYJWNYXNSHJUYNTS\MNHM\FXJFWQNJWFXXJXXJIFXHTSYFNSNSLF ÁSFSHJQJFXJ9MJWJFXXJXXRJSY\FXSJHJXXNYFYJITSFHHTZSYTKHMFSLJNSYMJHTSYWFHYZFQYJWRX \MNHMINISTYWJQFYJTSQ^YTWJSJ\FQTWJ]YJSXNTSTKYMJ FWWFSLJRJSY9MJFWWFSLJRJSYNXST\WJFXXJXXJIFXSTYHTSYFNSNSLFQJFXJFSIYMZXQJFXJFHHTZSYNSLHJFXJIYTFUUQ^KWTRYMJIFYJ\MJSYMJHMFSLJNS HNWHZRXYFSHJXLN[NSLWNXJYTYMJWJFXXJXXRJSYTHHZWWJI 9MJINKKJWJSHJGJY\JJSYMJHFWW^NSLFRTZSYTKYMJQJFXJIFXXJYXFSIYMJQJFXJQNFGNQNY^FRTZSYNSLYT`HWTWJMFXGJJSWJHTLSNXJINSYMJ8YFYJRJSYTK UWTÁYFSIQTXX As at 

As at 

22. NON-CURRENT - OTHER FINANCIAL LIABILITIES )JUTXNYXUF^FGQJ

1.14



1.14



As at 

As at 

*RUQT^JJGJSJÁYX

55.14



4YMJWUWT[NXNTSX 7JKJWSTYJ

16.07



71.21



As at 

As at 

0.94



0.94



As at 

As at 

0.44



229.82



391.79



-



23. NON-CURRENT PROVISIONS

24. OTHER NON-CURRENT LIABILITIES 4YMJWX

25. CURRENT FINANCIAL LIABILITIES - BORROWINGS Secured loans Term loans 

+WTRGFSPX`7JKJW3TYJ NFSI NNGJQT\b

Working capital demand loan 

+WTRGFSPX`7JKJW3TYJ NNNGJQT\b

Unsecured loans Working capital loan from bank: 

)JRFSIQTFS Factoring loan



8ZUUQNJWÁSFSHJKFHNQNY^

88.62



710.67



Notes : N (FXM (WJINY KFHNQNY^ FRTZSYNSL YT `  HWTWJ FX FY  `  HWTWJ F[FNQJI G^ (,55. &IMJXN[J 5WTIZHYX 1NRNYJI KWTR GFSP NX XJHZWJI G^ M^UTYMJHFYNTSTKXYTHPXFSIGTTPIJGYXFSINXKZWYMJWXJHZWJIG^RTWYLFLJG^IJUTXNYTKYNYQJIJJIXNSWJXUJHYTKNYXNRRT[FGQJUWTUJWYNJXGTYMUWJXJSYFSI KZYZWJHTSXNXYNSLTKQFSIKFHYTW^GZNQINSLXYWZHYZWJXJWJHYNTSXLTIT\SXFSIKZWSNYZWJFSIÁ]YZWJX (ii) Term loan amounting to `HWTWJF[FNQJIG^YMJ,WTZUHTRUFSNJXNXWJUFNIIZWNSLYMJ^JFW (iii) Working capital demand loan amounting to `HWTWJ FXFY`HWTWJF[FNQJIG^YMJ(TRUFS^NXXJHZWJIG^M^UTYMJHFYNTSTKNS[JSYTWNJX GTTPIJGYXFSIYWFIJWJHJN[FGQJXGTYMUWJXJSYFSIKZYZWJ

FINANCIALS

183


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

As at 

As at 

26. CURRENT FINANCIAL LIABILITIES - TRADE PAYABLES Acceptances

108.93



)ZJYTTYMJWX

1274.21



1383.14



&XFY

&XFY

27. CURRENT-OTHER FINANCIAL LIABILITIES Financial Liabilities at amortised cost: Current maturities of long- term debts: From banks +WTRĂ SFSHNFQNSXYNYZYNTSX



287.41



287.41





.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY

0.12





(ZWWJSYRFYZWNYNJXTKĂ SFSHJQJFXJTGQNLFYNTSX

0.04



5.62



1.29



Interest accrued but not due on borrowings Investor Education and Protection Fund: (7JKJWSTYJ below) Unclaimed dividend Financial guarantee obligations

0.86



)ZJYTINWJHYTWX

4.32



Other payables: )ZJYTJWXY\MNQJXMFWJMTQIJWX

-



7.47



*RUQT^JJIZJX

30.92



4YMJWX

66.23

8JHZWNY^IJUTXNYX

 104.62



404.28



Note: 9MJWJFWJSTFRTZSYXIZJFSITZYXYFSINSLYTGJHWJINYJIYTYMJ.S[JXYTW*IZHFYNTSFSI5WTYJHYNTS+ZSIFXFYXY2FWHMFSIXY2FWHM

&XFY

&XFY

28. OTHER CURRENT LIABILITIES &I[FSHJXKWTRHZXYTRJWX )ZJYTHZXYTRJWX 'FQFSHJ\NYMGFSPT[JWIWF\SFXUJWGTTPX

447.29



62.86



0.71



Other payables: 8YFYZYTW^IZJX

15.35



4YMJWX

30.03

  

45.38 556.24

As at 

As at 

*RUQT^JJGJSJĂ YX

14.67



4YMJWUWT[NXNTSX 7JKJWSTYJGJQT\

69.41



84.08



29. SHORT-TERM PROVISIONS

184

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

Note: Disclosures as required by Indian Accounting Standard (Ind AS) 37 Provisions, Contingent Liabilities and Contingent Assets (1) Movement in provisions: *]HNXJIZY^(ZXYTRXIZY^ 8JW[NHJYF]

8FQJXYF];&9

Warranties

3FYZWJTKUWT[NXNTSX













(FWW^NSLFRTZSYFYYMJGJLNSSNSLTKYMJ^JFW

43.50



11.93



3.50



&RTZSYYWFSXKJWWJIIZJYTINXHTSYNZSJITUJWFYNTSXIJRJWLJW

(7.50)



-



-



Additional provision made during the year #

15.51



-



-



Amounts used during the year

0.75



-



-



Unused amounts reversed during the year #

8.91



3.61



-



Translation adjustment

(0.44)



-



-



(FWW^NSLFRTZSYFYYMJJSITKYMJ^JFW

56.41



8.32



3.50



3FYZWJTKUWT[NXNTSX

1NVZNIFYJIIFRFLJX

*S[NWTSRJSYFQTGQNLFYNTSX









9.54



4.24



-



(2.67)



-



-



-



4.97



-



(FWW^NSLFRTZSYFYYMJGJLNSSNSLTKYMJ^JFW &RTZSYYWFSXKJWWJIIZJYTINXHTSYNZSJITUJWFYNTSXIJRJWLJW

4YMJWQNYNLFYNTSHQFNRX



Additional provision made during the year #



Amounts used during the year

1.82



-



-



Unused amounts reversed during the year #

1.47



2.93



-



(0.09)



-



-



8.83



6.28



-









(FWW^NSLFRTZSYFYYMJGJLNSSNSLTKYMJ^JFW

-



72.71



&RTZSYYWFSXKJWWJIIZJYTINXHTSYNZSJITUJWFYNTSXIJRJWLJW

-



(10.17)

 

Translation adjustment (FWW^NSLFRTZSYFYYMJJSITKYMJ^JFW

3FYZWJTKUWT[NXNTSX

4SJWTZXHTSYWFHYX

Total 

Additional provision made during the year #

7.23



27.71

Amounts used during the year

5.02



7.59



-



16.92



(0.07)



(0.60)



2.14



85.48



Unused amounts reversed during the year # Translation adjustment (FWW^NSLFRTZSYFYYMJJSITKYMJ^JFW

&IINYNTSFQUWT[NXNTSRFIJIZWNSLYMJ^JFWFSIWJ[JWXFQTKZSZXJIFRTZSYFWJNSHQZIJINSYMJWJXUJHYN[JMJFITKFHHTZSYX (FWW^NSLFRTZSYXHTRUWNXJTKSTSHZWWJSYFSIHZWWJSYUWT[NXNTSX (2) Nature of provisions: F 5WTIZHY\FWWFSYNJX9MJ,WTZULN[JX\FWWFSYNJXTSHJWYFNSUWTIZHYXFSIXJW[NHJXNSYMJSFYZWJTKWJUFNWXWJUQFHJRJSY\MNHMKFNQYTUJWKTWRXFYNXKFHYTWNQ^ IZWNSLYMJ\FWWFSY^UJWNTI5WT[NXNTSRFIJWJUWJXJSYXYMJFRTZSYTKYMJJ]UJHYJIHTXYTKRJJYNSLXZHMTGQNLFYNTSTSFHHTZSYTKWJHYNĂ HFYNTSWJUQFHJRJSY 9MJYNRNSLTKTZYĂ&#x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Ă&#x201A;ZJSYXFYNYXRFSZKFHYZWNSL QTHFYNTSX\MJWJ[JWWJVZNWJIG^QTHFQQF\ L 5WT[NXNTSKTWTSJWTZXHTSYWFHYXMF[JGJJSRFIJTSHTSYWFHYX\MJSNYNXUWTGFGQJYMFYYMJJXYNRFYJIHTXY\NQQJ]HJJIYMJYTYFQHTSYWFHYWJ[JSZJ

FINANCIALS

185


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)





30. REVENUE FROM OPERATIONS 8FQJTKUWTIZHYX 8FQJTKXJW[NHJX Construction contracts



5628.87 80.62



410.26



6119.75

5594.95





CONTRACTS IN PROGRESS (TSYWFHYWJ[JSZJWJHTLSNXJIKTWYMJÁSFSHNFQ^JFW &LLWJLFYJFRTZSYTKHTSYWFHYHTXYXNSHZWWJIFSIWJHTLSNXJIUWTÁYX QJXXWJHTLSNXJIQTXXJXKTW all contracts in progress up to the reporting date &RTZSYTKHZXYTRJWFI[FSHJXTZYXYFSINSLKTWHTSYWFHYXNSUWTLWJXXFXFYYMJWJUTWYNSLIFYJ

410.26



2816.15



62.93



122.61







39.37



-



,FNSTSXFQJTKNS[JXYRJSYX SJY

2.52



+FNW[FQZJLFNSTSÁSFSHNFQNSXYWZRJSYXFYKFNW[FQZJYMWTZLMUWTÁYTWQTXX

4.69



-



0.70



7JYJSYNTSFRTZSYIZJKWTRHZXYTRJWKTWHTSYWFHYNSUWTLWJXXFXFYYMJWJUTWYNSLIFYJ

31. OTHER INCOME Interest income )N[NIJSINSHTRJ

*]HMFSLJLFNS SJY Other non-operating income: .SHTRJKWTRQJFXJTKUWJRNXJXGZXNSJXXXJW[NHJHJSYJWX Government grant

0.03



5WTÁYTSXFQJTKUWTUJWY^UQFSYFSIJVZNURJSY SJY

4.15



2NXHJQQFSJTZXNSHTRJ



17.24



68.70





32. COST OF MATERIALS CONSUMED 4UJSNSLXYTHP

208.22



&II5ZWHMFXJX

3940.28



388.49



3760.01



Less: Closing stock

Less: 8HWFUXFQJX



51.38



3708.63 &II8ZGHTSYWFHYNSLHMFWLJX

237.25



3945.88



Note: 4UJSNSLXYTHPFSIHQTXNSLXYTHPJ]HQZIJXXYTHPWJQFYJIYTINXHTSYNSZJITUJWFYNTSX





236.41



236.41



33. PURCHASES OF STOCK-IN-TRADE 5ZWHMFXJXTKXYTHPNSYWFIJ

186

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)





34. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE *OHUNLZPUPU]LU[VYPLZVMÂUPZOLKNVVKZHUK^VYRPUWYVNYLZZ! Closing stock: Finished goods

128.84



<TWPNSUWTLWJXX

272.72



401.56



50.73



268.83



Opening stock: Finished goods <TWPNSUWTLWJXX



319.56



(82.00) Changes in inventories of stock-in-trade: Closing stock: 8YTHPNSYWFIJ



88.83

Opening stock: 8YTHPNSYWFIJ



2.66 (86.17)

 

(168.17)



Note: 4UJSNSLXYTHPFSIHQTXNSLXYTHPJ]HQZIJXXYTHPWJQFYJIYTINXHTSYNSZJITUJWFYNTSX





451.38



49.35



35. EMPLOYEE BENEFITS EXPENSE 8FQFWNJX\FLJXFSIGTSZX (TSYWNGZYNTSYTUWT[NIJSYFSITYMJWKZSIX 5TXYWJYNWJRJSYRJINHFQGJSJÁYX

2.81



33.56 537.10

 





Interest on loans

188.03



.SYJWJXYTSÁSFSHJQJFXJ

188.03







8YFKK\JQKFWJJ]UJSXJX

36. FINANCE COSTS 

37. DEPRECIATION AND AMORTISATION EXPENSE )JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

149.99



149.99



FINANCIALS

187


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)





(TSXZRUYNTSTKXYTWJXFSIXUFWJX

27.01



5T\JWFSIKZJQ

49.85



Rent

13.09



38. OTHER EXPENSES

Repairs to buildings

7.08



Repairs to machinery

23.88



Insurance

16.24



Rates and taxes

16.17



+WJNLMYFSIKTW\FWINSL

105.12



5FHPNSLRFYJWNFQX

57.01



&KYJWXFQJXXJW[NHJXNSHQZINSL\FWWFSYNJX

47.31



8FQJXUWTRTYNTS

31.93



1JLFQFSIUWTKJXXNTSFQHMFWLJX

69.08



407.09



227.46



1098.32



*]HNXJIZY^TSXFQJX 2NXHJQQFSJTZXJ]UJSXJX

` crore As at 

As at 

39. CONTINGENT LIABILITIES AND COMMITMENTS A.

Contingent liabilities:



YTYMJJ]YJSYSTYUWT[NIJIKTW

B.

(a)

Claims against the Group not acknowledged as debts

(b)

8FQJXYF];&9QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ

9.01



44.38



(c)

*]HNXJIZY^HZXYTRXIZY^XJW[NHJYF]QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQ

6.53



(d)

.SHTRJYF]QNFGNQNY^YMFYRF^FWNXJNSWJXUJHYTKRFYYJWXNSFUUJFQUWJKJWWJIG^YMJIJUFWYRJSY

4.58



11.12



Commitments: *XYNRFYJIFRTZSYTKHTSYWFHYXWJRFNSNSLYTGJJ]JHZYJITSHFUNYFQFHHTZSYFSISTYUWT[NIJIKTW SJYTKFI[FSHJX

Notes: F 9MJ,WTZUITJXSTYJ]UJHYFS^WJNRGZWXJRJSYNSWJXUJHYTKYMJFGT[JHTSYNSLJSYQNFGNQNYNJX G .YNXSTYUWFHYNHFGQJYTJXYNRFYJYMJYNRNSLTKHFXMTZYÃ&#x201A;T\XNKFS^NSWJXUJHYTKRFYYJWXFY FYT IFGT[JUJSINSLWJXTQZYNTSTKYMJFWGNYWFYNTSFUUJQQFYJ UWTHJJINSLX

188

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES F .SYJWRXTK.SINFS&HHTZSYNSL8YFSIFWI .SI&87JQFYJI5FWY^)NXHQTXZWJX.SINFS&HHTZSYNSL8YFSIFWI .SI&8(TSXTQNIFYJI+NSFSHNFQ8YFYJRJSYX FSI.SINFS&HHTZSYNSL8YFSIFWI .SI&8.S[JXYRJSYNS&XXTHNFYJXFSI/TNSY;JSYZWJXNS(TSXTQNIFYJI+NSFSHNFQ8YFYJRJSYXXUJHNÁJIG^YMJ(TRUFSNJX &HHTZSYNSL8YFSIFWIX7ZQJX FXFRJSIJIYMJ(TSXTQNIFYJI+NSFSHNFQ8YFYJRJSYXUWJXJSYYMJ(TSXTQNIFYJI+NSFSHNFQ8YFYJRJSYXTK(,5T\JW FSI.SIZXYWNFQ8TQZYNTSX1NRNYJI YMJ5FWJSY(TRUFS^\NYMNYXXZGXNINFWNJXFSIFXXTHNFYJXFXZSIJW

*VZNY^.SYJWJXY 8W 3T 3FRJTKYMJ7JQFYJI5FWY^

(TZSYW^TK Incorporation

As at 

As at 

(i)

Subsidiaries:



(,5T\JW8TQZYNTSX1NRNYJI

India







(WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI

India







(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI IJRJWLJI\JKWI2FWHM

India







(,.SYJWSFYNTSFQ';

The Netherlands







(,55.&IMJXN[J5WTIZHYX1NRNYJI

India







?.;&ZYTRFYNTS.SINF1NRNYJI NSHTWUTWFYJITSYM3T[JRGJWFSIIJRJWLJI\JKYM2FWHM







(,-TQINSLX'JQLNZR3;

'JQLNZR







(,5T\JW8^XYJRX'JQLNZR3;

'JQLNZR







(,5T\JW8^XYJRX.WJQFSI1NRNYJI

Ireland





 (,8FQJX3JY\TWPX+WFSHJ8&

France





 (,5T\JW8^XYJRX(FSFIF.SH

Canada





India

 59(,5T\JW8^XYJRX.SITSJXNF

Indonesia





 (,,FS_,JSJWFYTWFSI2TYTW1NRNYJI1NFGNQNY^(TRUFS^ KTWRJWQ^PST\SFX(,-TQINSLX-ZSLFW^0KY

Hungary





 (,*QJHYWNH8^XYJRX-ZSLFW^?WY

Hungary





Ireland





 2NHWTXTQ1NRNYJI HJFXJI\JKYM&UWNQ  (,&ZYTRFYNTS8^XYJRX:01NRNYJI HJFXJI\JKYM2FWHM  (,8JW[NHJ8^XYJRX+WFSHJ8&8  (,5T\JW:8&.SH KTWRJWQ^PST\SFX(,5T\JW8TQZYNTSX:8&  (,5T\JW8TQZYNTSX:01NRNYJI  (,5T\JW8^XYJRX'WF_NQ1YIF HJFXJI\JKYM)JHJRGJW  (,5T\JW8TQZYNTSX8FZIN&WFGNF1NRNYJI

:SNYJI0NSLITR





France





:8&





:SNYJI0NSLITR













'WF_NQ 8FZIN&WFGNF

 (WTRUYTS,WJF[JX-TQINSLX2FZWNYNZX1NRNYJI QNVZNIFYJI\JKYM)JHJRGJW

2FZWNYNZX





 (,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ5YJ1NRNYJI

8NSLFUTWJ





 (,.SIZXYWNFQ-TQINSLX8\JIJS&'

8\JIJS





 (,)WN[JXFSI&ZYTRFYNTS8\JIJS&'

8\JIJS





 (,)WN[JXFSI&ZYTRFYNTS3JYMJWQFSIX';

The Netherlands





 (,)WN[JXFSI&ZYTRFYNTSX,JWRFS^,RG-

Germany





 ?.;&UQNHFHNTSJX^9JHSTQTLNF81 HJFXJI\JKYM2FWHM

8UFNS





 ?.;2JYJWNSL8TQZYNTSX81 HJFXJI\JKYM2FWHM

8UFNS



 

 ?.;,WNI&ZYTRFYNTS81: HJFXJI\JKYM2FWHM

8UFNS



 ?.;(TRRZSNHFYNTSX8&: HJFXJI\JKYM2FWHM

8UFNS





 ?.;)T'WF_NQ1YIF HJFXJI\JKYM2FWHM

'WF_NQ





 ?.;.)8RFWY*SJWL^3JY\TWPX HJFXJI\JKYM2FWHM

8UFNS





 (,2NIIQJ*FXY+?*

:&*









 ?.;+WFSHJ8&8: NSHTWUTWFYJITSWI3T[JRGJWFSIHJFXJI\JKYM2FWHM

France

 (,-TQINSLX&RJWNHFX11( NSHTWUTWFYJITSYM4HYTGJW

:8&





 6*.11( NSHTWUTWFYJITSYM&UWNQ

:8&





 (,5T\JW&ZYTRFYNTS1NRNYJI NSHTWUTWFYJITSYM8JUYJRGJWFSIHJFXJI\JKYM2FWHM





:8&





 (,8TQZYNTSX&RJWNHFX11( NSHTWUTWFYJITSYM4HYTGJW

:8&





 ?.;3TWYM&RJWNHF11( NSHTWUTWFYJITSSI/ZQ^FSIHJFXJI\JKYM2FWHM

:8&









 (,5T\JW&RJWNHFX11( KTWRJWQ^'WF[NS11( NSHTWUTWFYJITSYM/FSZFW^

 (WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8IS'MI

Ireland

2FQF^XNF

FINANCIALS

189


NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.)

*VZNY^.SYJWJXY 8W 3T 3FRJTKYMJ7JQFYJI5FWY^

(TZSYW^TK Incorporation

As at 

As at 

8MFWOFM





8FZIN&WFGNF





Japan





(ii) Associates: 

(,.SYJWSFYNTSFQ';97 (TSY5[Y(T11( KTWRJQ^5FZ\JQX2NIIQJ*FXY9WFINSL (TSYWFHYNSL 5[Y(T11(



8FZIN5T\JW9WFSXKTWRJWX(TRUFS^1YI



00*QÁ/FUFS

(iii) Joint Ventures: 

(,1ZH^8\NYHMLJFW1NRNYJI HJFXJI\JKYM4HYTGJW



59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF

India Indonesia









Note: 

9MJ [TYNSLWNLMYXYMFY5FWJSY(TRUFS^MTQIXNSFQQNYXXZGXNINFWNJXNXJVZFQYTYMJ TKHTWWJXUTSINSLXMFWJMTQINSLJ]HJUYNSHFXJTK8JWNFQ3T59(, 5T\JW8^XYJRX.SITSJXNF9MJ5FWJSY(TRUFS^MTQIX TKXMFWJMTQINSLNS59(,5T\JW8^XYJRX.SITSJXNFYMWTZLMNYXXZGXNINFW^(,5T\JW8^XYJRX 'JQLNZR3;FSIGFQFSHJ NXMJQIG^TYMJWUFWYSJW-T\J[JWYMJ5FWJSY(TRUFS^YMWTZLMNYXXZGXNINFW^(,5T\JW8^XYJRX'JQLNZR3;MFX  [TYNSLWNLMYXXNSHJ XMFWJXMJQIG^TYMJWUFWYSJWMFXST[TYNSLWNLMYX



.SYMJHFXJTK(,5T\JW8TQZYNTSX8FZIN&WFGNF1NRNYJIFSI8FZIN5T\JW9WFSXKTWRJWX(T1YIYMJÁSFSHNFQXYFYJRJSYXFXFYXY)JHJRGJWMF[J GJJSHTSXNIJWJI9MJWJ\JWJSTRFYJWNFQFIOZXYRJSYXWJVZNWJIKTWFS^XNLSNÁHFSYJ[JSYXTWYWFSXFHYNTSXKTWYMJYMWJJRTSYMXZUYTXY2FWHM



+TWYMJUZWUTXJXTKHTSXTQNIFYNTSYMJÁSFSHNFQXYFYJRJSYXTKYMJKTWJNLSXZGXNINFWNJXFSIFXXTHNFYJXFXFYXY2FWHMMF[JGJJSWJXYFYJIYTHTRUQ^ \NYM,JSJWFQQ^&HHJUYJI5WNSHNUQJXNS.SINF

(iv) Key Management Personnel: 

,FZYFR9MFUFW







033JJQPFSY





3TS*]JHZYN[J)NWJHYTW(MFNWRFSFSI5WTRTYJW)NWJHYTW *]JHZYN[J)NWJHYTW(*4 2FSFLNSL)NWJHYTW



2FIMF[&HMFW^F





*]HJZYN[J)NWJHYTW+NSFSHJ (+4



2FSTO0TZQ





(TRUFS^8JHWJYFW^



4RPFW,TX\FRN





3TS*]JHZYN[J)NWJHYTW



'-FWNWFMFS





3TS*]JHZYN[J)NWJHYTW



8FSOF^1FGWTT





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW



;FQJSYNS;TS2FXXT\





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW



7FRSN3NWZQF





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW

 8MNWNXM&UYJ





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW HJFXJIYTGJF)NWJHYTW\JKXY&UWNQ

 2JMJW5ZIZROJJ





3TS*]JHZYN[J)NWJHYTWFSI.SIJUJSIJSY)NWJHYTW HJFXJIYTGJF)NWJHYTW\JKYM2F^

(v) Other Related Parties in which directors are interested: 

'FQQFWUZW.SIZXYWNJX1NRNYJI



8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI



'.19,WFUMNH5FUJW5WTIZHYX1NRNYJI



&[FSYMF-TQINSLX1NRNYJI JSYNY^\NYMXNLSNÁHFSHJNSÂZJSHJT[JWYMJ(TRUFS^



&[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI



&[FSYMF7JFQY^1NRNYJI



2FQFSUZW(FUYN[J5T\JW1NRNYJI



(TWJQQF.S[JXYRJSYX1NRNYJI



&RGZOF(JRJSYX1NRNYJI

 &XFMN.SINF,QFXX1NRNYJI  (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI HJFXJI\JKYM&ZLZXY  &[FSYMF+TZSIFYNTS  9MJWRF]1NRNYJI HJFXJI\JKYM2F^  .SKTX^X1NRNYJI  ;FWZS5WFPFXMFS5WN[FYJ1NRNYJI  0TWGF<JXY5T\JW(TRUFS^1NRNYJI  0*(.SYJWSFYNTSFQ1NRNYJI  /MFGZF5T\JW1NRNYJI  &[FSYMF5T\JW .SKWFXYWZHYZWJ1NRNYJI

190

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017




` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) (b) The following transactions were carried out with the related parties in the ordinary course of business: 8W 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 1 Purchase of goods and services Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Other Related Parties '.19,WFUMNH5FUJW5WTIZHYX1NRNYJI Total 2 Sales of goods and services Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Other Related Parties 'FQQFWUZW.SIZXYWNJX1NRNYJI '.19,WFUMNH5FUJW5WTIZHYX1NRNYJI 0TWGF<JXY5T\JW(TRUFS^1NRNYJI &XFMN.SINF,QFXX1NRNYJI 9MJWRF]1NRNYJI (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI /MFGZF5T\JW1NRNYJI Total 3

4

5

6

Investment in financial guarantee Joint Venture 59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF Total Interest expenses Joint Venture (,1ZH^8\NYHMLJFW1NRNYJI Total Rental income Other Related Parties '.19,WFUMNH5FUJW5WTIZHYX1NRNYJI 9MJWRF]1NRNYJI Total





-



-

 

-



0.54 0.01 0.05 11.61 0.14 12.35

       

1.15 1.15

 

-

 

-

 

-



0.29 0.29

 

6.97 6.97

 

Interest income Joint Venture 59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF Total

7

Other income Other Related Party (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Total

8

Payment of salaries, commission and perquisites Key Management Personnel 0.06



-



033JJQPFSY

5.02



2FIMF[&HMFW^F

5.05



4RPFW,TX\FRN

0.17



-



'-FWNWFMFS

0.17



8FSOF^1FGWTT

0.14



;FQJSYNS;TS2FXXT\

0.39



8MNWNXM&UYJ

0.35



Ramni Nirula

0.14



2JMJW5ZIZROJJ

0.01



-



0.56 12.06

 

Gautam Thapar 1FZWJSY)JRTWYNJW

(TQJYYJ1J\NSJW

2NSFQ'MTXFQJ 2FSTO0TZQ Total

FINANCIALS

191


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) (b) The following transactions were carried out with the related parties in the ordinary course of business: (Contd.) 8W 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 9





&[FSYMF7JFQY^1NRNYJI

2.04



/MFGZF5T\JW1NRNYJI

1.48



3.52



44.28



-



Avantha Foundation

0.65



&[FSYMF7JFQY^1NRNYJI

0.58



/MFGZF5T\JW1NRNYJI

0.72



46.23



Rent paid Other Related Parties

Total 10 Other expenses Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI

Total 11 Loans and advances given (net of repayments) during the year Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF7JFQY^1NRNYJI Total

6.14



12.56



18.70



7JRZSJWFYNTSITJXSTYNSHQZIJYMJUWT[NXNTSXRFIJKTWLWFYZNY^QJF[JFSIUTXYWJYNWJRJSYRJINHFQGJSJĂ YXFXYMJ^FWJIJYJWRNSJITSFSFHYZFWNFQGFXNXKTWYMJ (TRUFS^FXF\MTQJ           

(c) Amount due to / from related parties 8W 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 1

As at 

As at 

0.03



-



Accounts payable Other Related Parties &[FSYMF'ZXNSJXX8TQZYNTSX1NRNYJI /MFGZF5T\JW1NRNYJI (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI

-



0.03



'FQQFWUZW.SIZXYWNJX1NRNYJI

0.23



8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI

0.11



'.19,WFUMNH5FUJW5WTIZHYX1NRNYJI

3.55



&XFMN.SINF,QFXX1NRNYJI

0.01



-



&[FSYMF5T\JWFSI.SKWFXYWZHYZWJ1NRNYJI

0.00



0TWGF<JXY5T\JW(TRUFS^1NRNYJI

3.58



/MFGZF5T\JW1NRNYJI

4.44



Total 2

Accounts receivable Other Related Parties

9MJWRF]1NRNYJI

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI Total

3

-



11.92



102.70



Loans and advances receivable Other Related Parties &[FSYMF-TQINSLX1NRNYJI &[FSYMF7JFQY^1NRNYJI Total

192

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

12.56



115.26




` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 24 RELATED PARTY DISCLOSURES (Contd.) (c) Amount due to / from related parties (Contd.) As at 

As at 

0.10



/MFGZF5T\JW1NRNYJI

-



&[FSYMF7JFQY^1NRNYJI

-



8W 3T 3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 4

Loans and advances payable Other Related Parties 8TQFWNX(MJR9JHM.SIZXYWNJX1NRNYJI

(WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI

-



0.10



Gautam Thapar

0.04



033JJQPFSY

1.77



2FIMF[&HMFW^F

1.22



4RPFW,TX\FRN

0.16



-



'-FWNWFMFS

0.16



8FSOF^1FGWTT

0.12



;FQJSYNS;TS2FXXT\

0.38



8MNWNXM&UYJ

0.34



Ramni Nirula

0.12



2JMJW5ZIZROJJ

0.01



4.32



Total 5

Due to Key Management Personnel

(TQJYYJ1J\NSJW

Total 6

Guarantees outstanding Joint Venture 59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF Total

23.88



23.88







10.38



0.25



-



Compensation of key management personnel of the Group

3FYZWJTKYWFSXFHYNTSWJQFYNTSXMNU 8MTWYYJWRJRUQT^JJGJSJKNYX 5TXYJRUQT^RJSYUJSXNTSUWT[NIJSYKZSIFSIRJINHFQGJSJĂ YX 9JWRNSFYNTSGJSJĂ YX (TRRNXXNTSFSITYMJWGJSJĂ YXUFNIYTSTSJ]JHZYN[JNSIJUJSIJSYINWJHYTWX Total compensation paid to key management personnel

1.43



12.06



9MJYWFSXFHYNTSX\NYMWJQFYJIUFWYNJXFWJRFIJTSYJWRXJVZN[FQJSYYTYMTXJYMFYUWJ[FNQNSFWR¸XQJSLYMYWFSXFHYNTSX9MNXFXXJXXRJSYNXZSIJWYFPJSNSJFHM à SFSHNFQ^JFWYMWTZLMJ]FRNSNSLYMJà SFSHNFQUTXNYNTSTKYMJWJQFYJIUFWY^FSIYMJRFWPJYNS\MNHMYMJWJQFYJIUFWY^TUJWFYJX4ZYXYFSINSLGFQFSHJXFYYMJ^JFW JSIFWJZSXJHZWJIFSIXJYYQJRJSYTHHZWXNSHFXM

FINANCIALS

193


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

41. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 112 DISCLOSURE OF INTEREST IN OTHER ENTITIES Material non-controlling interest for continuing operations

3FRJTK8ZGXNINFW^ (,55.&IMJXN[J5WTIZHYX1NRNYJI

5WNSHNUFQUQFHJTK GZXNSJXX(TZSYW^TK incorporation

5WTUTWYNTSTKNSYJWJXY MJQIG^3TSHTSYWTQQNSL entities as at 

5WTUTWYNTSTKNSYJWJXY MJQIG^3TS controlling entities FXFY

India

18.58



9MJUWTUTWYNTSTK[TYNSLWNLMYXMJQIG^STSHTSYWTQQNSLNSYJWJXYITJXSTYINKKJWKWTRYMJUWTUTWYNTSTKT\SJWXMNUNSYJWJXY :\TTHYPZLK:[H[LTLU[VM7YVĂ&#x201A;[HUK3VZZ! (,55.&IMJXN[J 5WTIZHYX1NRNYJI 



22.72



(11.12)

 

4YMJWJ]UJSXJX

(9.50)

 

Finance costs

(0.13)

 

5WJYF]UWTĂ Y QTXXKWTRHTSYNSZNSLTUJWFYNTSX

1.97



Income tax expense

0.72



5TXYYF]UWTĂ Y QTXXKWTRHTSYNSZNSLTUJWFYNTSX &

1.25



4YMJWHTRUWJMJSXN[JNSHTRJ '

1.25

 

&YYWNGZYFGQJYTSTSHTSYWTQQNSLNSYJWJXY

0.23



)N[NIJSIUFNIYTSTSHTSYWTQQNSLNSYJWJXY

0.03



Revenue (TXYTKRFYJWNFQHTSXZRJI

9TYFQHTRUWJMJSXN[JNSHTRJ &'"(

Summarised Balance Sheet: (,55.&IMJXN[J5WTIZHYX 1NRNYJI

Current assets 3TSHZWWJSYFXXJYX

As at 

As at 

16.08



5.15



3TSHZWWJSYQNFGNQNYNJX

(4.91) (0.15)

   

Total equity

16.17



*VZNY^MTQIJWXTKUFWJSY

13.17



3TSHTSYWTQQNSLNSYJWJXY

3.00



Current liabilities

Attributable to:

:\TTHYPZLKJHZOĂ&#x192;V^PUMVYTH[PVU! (,55.&IMJXN[J5WTIZHYX 1NRNYJI 



4UJWFYNSL

0.07

 

Investing

(1.16)

 

Financing

(1.00) (2.09)

  

3JYNSHWJFXJ IJHWJFXJNSHFXMFSIHFXMJVZN[FQJSYX 9MJWJ\JWJSTFIINYNTSFQFHVZNXNYNTSTWINXUTXFQTKNSYJWJXYNSXZGXNINFWNJX

194

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)





1.24



42. EXPENSES CAPITALISED DURING THE YEAR (a)

Raw material consumed

G

*RUQT^JJGJSJÁYX

H

4YMJWJ]UJSXJX



5.89



19.42



43. EMPLOYEE BENEFITS H +LÂULKJVU[YPI\[PVUWSHUZ!  &RTZSYTK`HWTWJ 5WJ[NTZX^JFW`HWTWJNXWJHTLSNXJIFXFSJ]UJSXJFSINSHQZIJINS*RUQT^JJGJSJÁYXJ]UJSXJFXZSIJWYMJKTQQT\NSLIJÁSJI HTSYWNGZYNTSUQFSX





11.07



)LULÂ[Z*VU[YPI\[PVU[V! 5WT[NIJSYKZSI 8ZUJWFSSZFYNTSKZSI

4.24



*RUQT^JJXYFYJNSXZWFSHJXHMJRJ

0.31



1FGTZW\JQKFWJXHMJRJ Family pension Total

0.02



29.31 44.95

 

I +LÂULKILULÂ[WSHUZ! Gratuity 



9MJ,WTZUUWT[NIJXKTWLWFYZNY^FIJÁSJIGJSJÁYWJYNWJRJSYUQFSHT[JWNSLJQNLNGQJJRUQT^JJX9MJ,WFYZNY^5QFSUWT[NIJXFQZRUXZRUF^RJSYYT[JXYJI JRUQT^JJXFYWJYNWJRJSYIJFYMNSHFUFHNYFYNTSTWYJWRNSFYNTSTKJRUQT^RJSYTKFSFRTZSYJVZN[FQJSYYTYTIF^X¸XFQFW^KTWJFHMHTRUQJYJI^JFWTK XJW[NHJXZGOJHYYTFRF]NRZRTK`HWTWJ;JXYNSLTHHZWXZUTSHTRUQJYNTSTKÁ[JHTSYNSZTZX^JFWXTKXJW[NHJNSFHHTWIFSHJ\NYM.SINFSQF\ 9MJ,WTZURFPJXFSSZFQHTSYWNGZYNTSXYTYMJ(WTRUYTS,WJF[JX­1NRNYJI­,WFYZNY^9WZXY­\MNHMNX­KZSIJIIJÁSJIGJSJÁYUQFSKTWVZFQNK^NSLJRUQT^JJX 7VZ[YL[PYLTLU[TLKPJHSILULÂ[



5TXYWJYNWJRJSYRJINHFQGJSJÁYNSHQZIJXMTXUNYFQN_FYNTSHT[JW GJSJÁYXTSHJXXFYNTSTKJRUQT^RJSYKTWYMJUTQNH^9MNXHT[JWNXFUUQNHFGQJTSQ^YTJRUQT^JJ FSI XUTZXJ FX UJW YMJ QNRNYX XUJHNÁJI KTW YMJ QFXY LWFIJ \MNQJ NS JRUQT^RJSY 9MNX HT[JWFLJ ITJX STY KTWR UFWY TK JXXJSYNFQ YJWRX FSI HTSINYNTS TK JRUQT^RJSYFSINXFGJSJÁYJ]YJSIJIG^YMJ,WTZUFXFUFWYTKNYXXTHNFQGJSJÁYUTQNHNJX9MJUTQNHNJXTK2JINHFQ-JFQYMFSI-TXUNYFQN_FYNTSNSXZWFSHJFWJ XZGOJHYYTHMFSLJGFXJITSHTSYJRUTWFW^RFWPJYYWJSIXFSIUWFHYNHJX



9MJKTQQT\NSLYFGQJXXZRRFWNXJYMJHTRUTSJSYXTKSJYGJSJÁYJ]UJSXJXWJHTLSNXJINSYMJXYFYJRJSYTKUWTÁYFSIQTXXFSIYMJKZSIJIXYFYZXFSIFRTZSYX WJHTLSNXJINSYMJGFQFSHJXMJJYKTWYMJWJXUJHYN[JUQFSX 5TXY7JYNWJRJSY2JINHFQ 'JSJKNYX

Gratuity 







(Funded)

(Funded)

(Nonfunded)

(Nonfunded) 

I

*OHUNLPUWYLZLU[]HS\LVMKLÂULKILULÂ[VISPNH[PVUK\YPUN[OL`LHY



5WJXJSY[FQZJTKIJÁSJIGJSJÁYTGQNLFYNTSFYYMJGJLNSSNSLTKYMJ^JFW

53.22



23.12



Interest cost

4.37



1.92





Current service cost

3.07



0.89





5FXYXJW[NHJHTXY

-



-





1NFGNQNY^YWFSXKJWWJITZYIN[JXYRJSY

(0.67)

 

(0.74)

 



'JSJÁYXUFNIINWJHYQ^G^YMJJRUQT^JW

(0.93)

 

(1.64)

 



'JSJÁYXUFNI

(8.76)

 

-





&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSIJRTLWFUMNHFXXZRUYNTSX

0.01



-





&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSÁSFSHNFQFXXZRUYNTSX

 

 &HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX  5WJXJSY[FQZJTKIJÁSJIGJSJÁYTGQNLFYNTSFYYMJJSITKYMJ^JFW

1.77

 

4.47

9.90



(2.99)



61.98



25.03



FINANCIALS

195


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

43. EMPLOYEE BENEFITS (Contd.) 5TXY7JYNWJRJSY2JINHFQ 'JSJKNYX

Gratuity

II









(Funded)

(Funded)

(Nonfunded)

(Nonfunded)

37.11



NA

NA

3.03



NA

NA

Change in fair value of plan assets during the year



+FNW[FQZJTKUQFSFXXJYXFYYMJGJLNSSNSLTKYMJ^JFW



Interest Income



Contributions paid by the employer

16.07



NA

NA



'JSJĂ YXUFNIKWTRYMJKZSI

(8.76)

 

NA

NA



&XXJYXYWFSXKJWWJITZYIN[JXYRJSYX

(0.67)

 

NA

NA



Return on plan assets excluding interest income

5.12

 

NA

NA

51.90



NA

NA

(61.98)

 

(25.03)

 

51.90



-



(25.03)

 



+FNW[FQZJTKUQFSFXXJYXFYYMJJSITKYMJ^JFW

III

Net asset / (liability) recognised in the balance sheet



5WJXJSY[FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJJSITKYMJ^JFW



+FNW[FQZJTKUQFSFXXJYXFYYMJJSITKYMJ^JFW



Amount recognised in the balance sheet

(10.08)

 

3JY QNFGNQNY^FXXJY(ZWWJSY

(10.08)

 

(1.64)

 

-



(23.39)

 



3JY QNFGNQNY^FXXJY3TSHZWWJSY IV

,_WLUZLZYLJVNUPZLKPU[OLZ[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZMVY[OL`LHY



Current service cost

3.07



0.89





.SYJWJXYHTXYTSGJSJĂ YTGQNLFYNTS SJY

1.33



1.92





9TYFQJ]UJSXJXNSHQZIJINSJRUQT^JJGJSJĂ YXJ]UJSXJ

4.40



2.81



V

Recognised in other comprehensive income for the year



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSIJRTLWFUMNHFXXZRUYNTSX

0.01



-





&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSĂ SFSHNFQFXXZRUYNTSX

1.77

 

4.47

 



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX





Return on plan assets excluding interest income



Recognised in other comprehensive income

VI

4H[\YP[`WYVĂ&#x201A;SLVMKLĂ&#x201A;ULKILULĂ&#x201A;[VISPNH[PVU

9.90



(2.99)

(5.12)



NA

NA

6.56



1.48





<NYMNSYMJSJ]YRTSYMX SJ]YFSSZFQWJUTWYNSLUJWNTI

12.69



1.88





'JY\JJSFSI^JFWX

26.10



7.99





'JY\JJSFSI^JFWX

24.96



12.33



VII 8\HU[P[H[P]LZLUZP[P]P[`HUHS`ZPZMVYZPNUPĂ&#x201A;JHU[HZZ\TW[PVUPZHZILSV^! 

196

.SHWJFXJ IJHWJFXJTSUWJXJSY[FQZJTKIJĂ SJIGJSJĂ YXTGQNLFYNTSFYYMJJSITKYMJ^JFW N

4SJUJWHJSYFLJUTNSYNSHWJFXJNSINXHTZSYWFYJ

(3.03)

 

(2.57)

 

NN

4SJUJWHJSYFLJUTNSYIJHWJFXJNSINXHTZSYWFYJ

3.40



3.19



N

4SJUJWHJSYFLJUTNSYNSHWJFXJNSWFYJTKXFQFW^NSHWJFXJ

3.49



NA

NA

NN

4SJUJWHJSYFLJUTNSYIJHWJFXJNSWFYJTKXFQFW^NSHWJFXJ

(3.16)

 

NA

NA

N

4SJUJWHJSYFLJUTNSYNSHWJFXJNSJRUQT^JJYZWST[JWWFYJ

0.86



NA

NA

NN

4SJUJWHJSYFLJUTNSYIJHWJFXJNSJRUQT^JJYZWST[JWWFYJ

(0.97)

 

NA

NA

N

4SJUJWHJSYFLJUTNSYNSHWJFXJNSRJINHFQNSĂ&#x201A;FYNTSWFYJ

NA

NA

3.22



NN

4SJUJWHJSYFLJUTNSYIJHWJFXJNSRJINHFQNSĂ&#x201A;FYNTSWFYJ

NA

NA

(2.60)

 



Sensitivity Analysis Method



8JSXNYN[NY^FSFQ^XNXNXIJYJWRNSJIGFXJITSYMJJ]UJHYJIRT[JRJSYNSQNFGNQNY^NKYMJFXXZRUYNTSX\JWJSTYUWT[JIYTGJYWZJTSINKKJWJSYHTZSY

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

43. EMPLOYEE BENEFITS (Contd.) 5TXY7JYNWJRJSY2JINHFQ 'JSJKNYX

Gratuity As at 

As at 

As at 

As at 

(Funded)

(Funded)

3TSKZSIJI

(Nonfunded)

100%



NA

NA

7



30



7.64% 8.00% p.a.

   UF

7.54% p.a.

 UF

6.00% p.a. for the next 1 year, 4.00% p.a. for the next 2 years, starting from the 2nd year, 3.50% p.a. thereafter, starting from the 4th year

 UF KTWYMJSJ]Y year,  UF KTWYMJSJ]Y ^JFWX XYFWYNSLKWTR YMJSI^JFW  UF YMJWJFKYJW XYFWYNSLKWTR YMJYM^JFW

NA

NA

Indian Assured Indian 1N[JX2TWYFQNY^ Assured Lives  Mortality (2006-08)

Indian Assured 1N[JX2TWYFQNY^ 

VIII The major categories of plan assets as a percentage of total .SXZWJWRFSFLJIKZSIX IX

>LPNO[LKH]LYHNLK\YH[PVUVM[OLKLĂ&#x201A;ULKILULĂ&#x201A;[VISPNH[PVUPU`LHYZ

X

Actuarial assumptions



)NXHTZSYWFYJ



8FQFW^JXHFQFYNTS



2TWYFQNY^WFYJIZWNSLJRUQT^RJSY



2TWYFQNY^UTXYWJYNWJRJSYWFYJ



7FYJTKJRUQT^JJYZWST[JW



+ZYZWJGJSJĂ YHTXYNSĂ&#x201A;FYNTS



2JINHFQUWJRNZRNSĂ&#x201A;FYNTSWFYJ

*]UJHYJIHTSYWNGZYNTSYTYMJIJĂ SJIGJSJĂ YUQFSKTWYMJSJ]YFSSZFQWJUTWYNSLUJWNTI

Indian Assured Lives Mortality (2006-08) NA

NA

Indian Assured Lives Mortality (2006-08)

Indian Assured 1N[JX2TWYFQNY^ 

4.00% p.a.

 UF

4.00% p.a.

 UF

0% p.a.

 UF

0% p.a.

NA

NA

NA

2.00 % p.a.

 UF





7.22



Pension obligation 

9MJ,WTZUTUJWFYJXUTXYWJYNWJRJSYUJSXNTSUQFSKTWNYXJQNLNGQJJRUQT^JJXFIJà SJIGJSJà YWJYNWJRJSYUQFS\NYMFXXJYXMJQINSFXJUFWFYJQ^FIRNSNXYJWJIKZSIX9MJ XHMJRJUWT[NIJXWJYNWJRJSYGJSJà YXTSYMJGFXNXTKRJRGJWX¸à SFQXFQFW^



9MJ,WTZUFQXTUWT[NIJXTYMJWUTXYJRUQT^RJSYYJWRNSFYNTSGJSJĂ YX\MNHMNXXJUFWFYNTSUF^9MJXJUFWFYNTSUF^GJSJĂ YNXUFNIYTJRUQT^JJXNSYMJHFXJTK [TQZSYFW^WJXNLSFYNTSXZGOJHYYTFRNSNRZRSZRGJWTK^JFWXTKXJW[NHJ9MNXGJSJĂ YMFXGJJSFHHTZSYJIKTWZXNSLYMJXFRJRJYMTITQTL^FXKTWYMJIJĂ SJIGJSJĂ Y UJSXNTSUQFS



9MJKTQQT\NSLYFGQJXXZRRFWNXJYMJHTRUTSJSYXTKSJYGJSJĂ YJ]UJSXJXWJHTLSNXJINSYMJXYFYJRJSYTKUWTĂ YFSIQTXXFSIYMJKZSIJIXYFYZXFSIFRTZSYXWJHTLSNXJI NSYMJGFQFSHJXMJJYKTWYMJWJXUJHYN[JUQFSX

I

;OLTV]LTLU[PU[OLWYLZLU[]HS\LVMKLĂ&#x201A;ULKILULĂ&#x201A;[VISPNH[PVU!



5WJXJSY[FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJGJLNSSNSLTKYMJ^JFW



1NFGNQNY^YWFSXKJWWJITZYIN[JXYRJSY



Current service cost





218.47



(117.86)



8.46





Interest cost

4.70





'JSJĂ YXUFNI

(2.16)

 



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSIJRTLWFUMNHFXXZRUYNTSX

-





&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSĂ SFSHNFQFXXZRUYNTSX

1.88

 



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX

0.62

 



5FXYXJW[NHJHTXY LFNS

 8JYYQJRJSYUF^RJSY  *RUQT^JJHTSYWNGZYNTSX

-



-

 

0.99



FINANCIALS

197


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

43. EMPLOYEE BENEFITS (Contd.)   9WFSXQFYNTSINKKJWJSHJ  5WJXJSY[FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJJSITKYMJ^JFW



(6.21)



108.89



217.18



(121.34)



II

The movement in fair value of plan assets:



+FNW[FQZJTKUQFSFXXJYXFYYMJGJLNSSNSLTKYMJ^JFW



&XXJYXYWFSXKJWWJITZYIN[JXYRJSY



Interest income



Return on plan assets excluding interest income



*RUQT^JWHTSYWNGZYNTSX



'JSJĂ YUFNI



5FXYXJW[NHJHTXY

(1.53)

 



9WFSXQFYNTSINKKJWJSHJ

(5.67)





+FNW[FQZJTKUQFSFXXJYXFYYMJJSITKYMJ^JFW

94.77



III

Net (asset) / liability recognised in the balance sheet:



5WJXJSY[FQZJTKIJĂ SJIGJSJĂ YTGQNLFYNTSFYYMJJSITKYMJ^JFW

108.89





+FNW[FQZJTKUQFSFXXJYXFYYMJJSITKYMJ^JFW

94.77





3JYUJSXNTSQNFGNQNY^ FXXJY

14.12





5FXYXJW[NHJHTXYSTY^JYWJHTLSN_JI



3JYUJSXNTSQNFGNQNY^ FXXJYWJHTLSNXJINSYMJGFQFSHJXMJJY

IV

,_WLUZLZYLJVNUPZLKPU[OLZ[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZMVY[OL`LHY!



4.35



(0.12)

 

3.18



(1.28)

 

-



14.12



Current service cost

8.46





.SYJWJXYHTXYTSGJSJĂ YTGQNLFYNTS 3JY

0.35





5FXYXJW[NHJHTXY

1.53





&HYZFWNFQ LFNSQTXXJX

(0.20)





9TYFQJ]UJSXJXNSHQZIJINSJRUQT^JJGJSJĂ YXJ]UJSXJ

10.14



V

Recognised in other comprehensive income for the year:



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSIJRTLWFUMNHFXXZRUYNTSX

-





&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSĂ SFSHNFQFXXZRUYNTSX

1.81

 



&HYZFWNFQHMFSLJXFWNXNSLKWTRHMFSLJXNSJ]UJWNJSHJFIOZXYRJSYX

0.76





Return on plan assets excluding interest income

1.79





Recognised in other comprehensive income

4.36

 

As at 

As at 

VI

The major categories of plan assets as a percentage of total plan assets:



.SXZWJWRFSFLJIKZSIX

40.05%





*VZNY^NSXYWZRJSYX

14.99%





)JGYNSXYWZRJSYX

43.16%





&SSZNY^'Z^NS

0.00%





Cash

1.80%



Total

100.00%



VII Actuarial assumptions: 

)NXHTZSYWFYJ

1.70% - 8.35% p.a.

   UF



Future salary and pension increases

2.20% - 7.50% p.a.

   UF

Above defined benefit plans for pension obligation forms part of continuing and discontinued operations as at 31st March, 2017

198

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

43. EMPLOYEE BENEFITS (Contd.) (c) Provident Fund 

9MJ,WTZURFPJXHTSYWNGZYNTSYT\FWIXUWT[NIJSYKZSI\MNHMNXFIRNSNXYJWJIG^YMJYWZXYJJX9MJ7ZQJXTKYMJ,WTZU¸X5WT[NIJSY+ZSIFIRNSNXYJWJIG^FYWZXY WJVZNWJYMFYNKYMJ'TFWITKYMJ9WZXYJJXFWJZSFGQJYTUF^NSYJWJXYFYYMJWFYJIJHQFWJIG^YMJ,T[JWSRJSYZSIJW5FWFTKYMJ*RUQT^JJX5WT[NIJSY+ZSI 8HMJRJKTWYMJWJFXTSYMFYYMJWJYZWSTSNS[JXYRJSYNXQJXXKTWFS^TYMJWWJFXTSYMJSYMJIJÁHNJSH^XMFQQGJRFIJLTTIG^YMJ,WTZURFPNSLNSYJWJXY XMTWYKFQQFIJÁSJIGJSJÁYUQFS&HHTWINSLQ^YMJ,WTZUMFXTGYFNSJIFHYZFW^[FQZFYNTSFSIGFXJITSYMJGJQT\UWT[NIJIFXXZRUYNTSYMJWJNXSTIJÁHNJSH^ FXFYYMJGFQFSHJXMJJYIFYJ-JSHJYMJQNFGNQNY^NXWJXYWNHYJIYT\FWIXRTSYMQ^HTSYWNGZYNTSXTSQ^ As at 

As at 

5QFSFXXJYXFYUJWNTIJSIFYKFNW[FQZJ

312.16



5WJXJSY[FQZJTKIJKNSJITGQNLFYNTSFYUJWNTIJSI

281.59



As at 

As at 

7.64% p.a.

 UF

5FWYNHZQFWX

&XXZRUYNTSXZXJINSIJYJWRNSNSLYMJUWJXJSY[FQZJTKTGQNLFYNTS 5FWYNHZQFWX 7FYJTKINXHTZSYNSL 2TWYFQNY^WFYJ

Indian Indian Assured Lives &XXZWJI1N[JX 2TWYFQNY^ Mortality  (2006-08) Ultimate Ultimate  UF

Attrition rate

4.00% p.a.

,ZFWFSYJJIWFYJTKNSYJWJXY

8.65% p.a.

 UF

Whilst in service withdrawal

5.00% p.a.

 UF

44. SEGMENT INFORMATION Operating Segments: 5T\JW8^XYJRX

 

9WFSXKTWRJW8\NYHMLJFWFSI9ZWSPJ^5WTOJHYX

.SIZXYWNFQ8^XYJRX

 

*QJHYWNH2TYTWX&QYJWSFYTWX)WN[JX9WFHYNTS*QJHYWTSNHXFSI8(&)&

0KLU[PÂJH[PVUVM:LNTLU[Z! 9MJHMNJKTUJWFYNTSFQIJHNXNTSRFPJWRTSNYTWXYMJTUJWFYNSLWJXZQYXTKNYX'ZXNSJXX8JLRJSYXXJUFWFYJQ^KTWYMJUZWUTXJTKRFPNSLIJHNXNTSXFGTZYWJXTZWHJFQQTHFYNTS FSIUJWKTWRFSHJFXXJXXRJSY8JLRJSYUJWKTWRFSHJNXJ[FQZFYJIGFXJITSUWTÁYTWQTXXFSINXRJFXZWJIHTSXNXYJSYQ^\NYMUWTÁYTWQTXXNSYMJÁSFSHNFQXYFYJRJSYX 4UJWFYNSLXJLRJSYXMF[JGJJSNIJSYNÁJITSYMJGFXNXTKYMJSFYZWJTKUWTIZHYXXJW[NHJXFSIMF[JGJJSNIJSYNÁJIFXUJWYMJVZFSYNYFYN[JHWNYJWNFXUJHNÁJINS YMJ.SI&8 Segment revenue and results: 9MJJ]UJSXJXFSINSHTRJX\MNHMFWJSTYINWJHYQ^FYYWNGZYFGQJYTFS^GZXNSJXXXJLRJSYFWJXMT\SFXZSFQQTHFGQJJ]UJSINYZWJ SJYTKZSFQQTHFYJINSHTRJ Segment assets and liabilities: 8JLRJSYFXXJYXNSHQZIJFQQTUJWFYNSLFXXJYXZXJIG^YMJTUJWFYNSLXJLRJSYFSIRFNSQ^HTSXNXYTKUWTUJWY^UQFSYFSIJVZNURJSYYWFIJWJHJN[FGQJXHFXMFSIHFXM JVZN[FQJSYXFSINS[JSYTWNJX8JLRJSYQNFGNQNYNJXUWNRFWNQ^NSHQZIJYWFIJUF^FGQJXFSITYMJWQNFGNQNYNJX(TRRTSFXXJYXFSIQNFGNQNYNJX\MNHMHFSSTYGJFQQTHFYJIYT FS^TKYMJXJLRJSYXFWJXMT\SFXFUFWYTKZSFQQTHFGQJFXXJYXQNFGNQNYNJX Inter segment transfer: .SYJWXJLRJSYUWNHJXFWJSTWRFQQ^SJLTYNFYJIFRTSLXYXJLRJSYX\NYMWJKJWJSHJYTYMJHTXYXRFWPJYUWNHJFSIGZXNSJXXWNXPX5WTÁYTWQTXXTSNSYJWXJLRJSY YWFSXKJWXFWJJQNRNSFYJIFYYMJ,WTZUQJ[JQ

FINANCIALS

199


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

44. SEGMENT INFORMATION (Contd.) Summary of the Segmental Information as at and for the year ended 31st March, 2017 is as follows:

5FWYNHZQFWX

*QNRNSFYNTSX :SFQQTHFGQJ )NXHTSYNSZJI *]UJSINYZWJ &XXJYX operations

5T\JW 8^XYJRX

Industrial 8^XYJRX

4YMJWX

3738.89

2360.50

20.36

-

-

0.51

0.11

-

-

(0.62)

-

3739.40

2360.61

20.36

-

(0.62)

6119.75

384.36

156.49

0.08

-

-

540.93

Total 

Revenue *]YJWSFQXFQJX ,WTXX8FQJX &II.SYJWXJLRJSYXFQJX Total revenue 8JLRJSYWJXZQYX

6119.75

Less: Finance costs (net)

188.03

Less:4YMJWZSFQQTHFGQJJ]UJSINYZWJSJYTKZSFQQTHFGQJNSHTRJ

152.01

7YVĂ&#x201A;[HM[LYĂ&#x201A;UHUJLJVZ[I\[ILMVYLZOHYLVMSVZZMYVT associates and joint venture, exceptional items and tax

200.89

8MFWJTKUWTĂ Y QTXXKWTRFXXTHNFYJXFSIOTNSY[JSYZWJ

(1.57)

*]HJUYNTSFQNYJRX SJY

(72.73)

Tax expense

16.60

5WTĂ YFKYJWYF]KWTRHTSYNSZNSLTUJWFYNTSX

109.99

1TXXFKYJWYF]KWTRINXHTSYNSZJITUJWFYNTSX

(600.62)

Loss for the year

(490.63)

Capital Employed: 8JLRJSYFXXJYX

3321.21

1437.71

34.11

3017.08

2244.61

10054.72

8JLRJSYQNFGNQNYNJX

1514.64

482.27

6.84

1151.53

209.72

3365.00

Net Assets

1806.57

955.44

27.27

1865.55

2034.89

6689.72

Capital expenditure#

30.21

24.92

1.98

-

6.68

63.79

)JUWJHNFYNTSFSIFRTWYNXFYNTS

70.73

61.09

0.33

-

17.84

149.99

.RUFNWRJSYTKLTTI\NQQ

43.61

-

-

-

-

43.61

3TSHFXMJ]UJSXJXTYMJWYMFSIJUWJHNFYNTS

23.35

5.51

0.13

-

-

28.99

*QNRNSFYNTSX :SFQQTHFGQJ )NXHTSYNSZJI *]UJSINYZWJ &XXJYX TUJWFYNTSX

Total 

Summary of the Segmental Information as at and for the year ended 31st March 2016 is as follows:

5FWYNHZQFWX Revenue *]YJWSFQXFQJX ,WTXX8FQJX &II.SYJWXJLRJSYXFQJX Total revenue 8JLRJSYWJXZQYX

5T\JW 8^XYJRX

Industrial 8^XYJRX

4YMJWX



















 











 







 









Less: Finance costs (net)



Less:4YMJWZSFQQTHFGQJJ]UJSINYZWJSJYTKZSFQQTHFGQJNSHTRJ

 

7YVĂ&#x201A;[HM[LYĂ&#x201A;UHUJLJVZ[I\[ILMVYLZOHYLVMWYVĂ&#x201A;[MYVT associates and joint venture, exceptional items and tax 8MFWJTKUWTĂ Y QTXXKWTRFXXTHNFYJFSIOTNSY[JSYZWJ



*]HJUYNTSFQNYJRX SJY

  

Tax expense 5WTĂ YFKYJWYF]KWTRHTSYNSZNSLTUJWFYNTSX



1TXXFKYJWYF]KWTRINXHTSYNSZJITUJWFYNTSX

 

Loss for the year

 

Capital Employed: 8JLRJSYFXXJYX













8JLRJSYQNFGNQNYNJX













Net Assets













Capital expenditure#













)JUWJHNFYNTSFSIFRTWYNXFYNTS













.RUFNWRJSYTKLTTI\NQQ

























3TSHFXMJ]UJSXJXTYMJWYMFSIJUWJHNFYNTS

:SFQQTHFGQJFXXJYXHTRUWNXJFXXJYXFSIQNFGNQNYNJX\MNHMHFSSTYGJFQQTHFYJIYTYMJXJLRJSYX9F]HWJINYFXXJYXQNFGNQNYNJXFWJSTYHTSXNIJWJINSHFUNYFQJRUQT^JI )NXHTSYNSZJITUJWFYNTSXNSHQZIJXJLRJSYFXXJYXTK`HWTWJFSIXJLRJSYQNFGNQNYNJXTK`HWTWJUJWYFNSNSLYT&ZYTRFYNTS8^XYJRXGZXNSJXX\MNHM\FX XTQITZYIZWNSLYMJĂ SFSHNFQ^JFW 9MJINXHQTXZWJUJWYFNSXYTHTSYNSZNSLGZXNSJXXXJLRJSYX

200

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

44. SEGMENT INFORMATION (Contd.) (a) Segment revenue by location of customers:





Sales and service revenue: )TRJXYNH



4104.23

4[JWXJFX 1348.78



&KWNHF

117.10



North America

152.47



8TZYM&RJWNHF

63.45



*ZWTUJ

289.28



Australia

44.44

Asia

Total

 2015.52



6119.75



(b) Cost incurred on acquisition of tangible and intangible assets:





)TRJXYNH

5FWYNHZQFWX

43.89



4[JWXJFX

19.90



Total

63.79



As at 

As at 

(c) The carrying amount of non current assets by location of assets:

5FWYNHZQFWX )TRJXYNH

1322.96



4[JWXJFX

446.35



1769.31



As at 

As at 

10054.72



Total (d) Reconciliation of Segment Assets

5FWYNHZQFWX &XXJYXKWTRWJUTWYFGQJXJLRJSYX )JKJWWJIYF]FXXJYX Total

133.38



10188.10



As at 

As at 

3365.00



(e) Reconciliation of Segment Liabilities

5FWYNHZQFWX 1NFGNQNYNJXKWTRWJUTWYFGQJXJLRJSYX 1TSLYJWRGTWWT\NSLX

926.27



)JKJWWJIYF]QNFGNQNYNJX

464.05



8MTWYYJWRGTWWT\NSLX

763.28



(ZWWJSYRFYZWNYNJXTKQTSLYJWRIJGY

558.41



6077.01



Total NSHQZIJXFRTZSYXUJWYFNSNSLYTINXHTSYNSZJITUJWFYNTSX

FINANCIALS

201


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

45. DISCONTINUED OPERATIONS Sale of Automation Business 

9MJ'TFWITK)NWJHYTWXTKYMJ,WTZU[NIJWJXTQZYNTSIFYJIYM3T[JRGJWFHHJUYJIFSTKKJWKTWYMJXFQJTK,WTZU¸X''&ZYTRFYNTSGZXNSJXXHTRUWNXNSL TK?.;&UQNHFHNTSJX^9JHMSTQTLNF81 8UFNSNYXXZGXNINFWNJXFQTSL\NYMYMJWJQFYJI&ZYTRFYNTSGZXNSJXXNS:SNYJI0NSLITR.WJQFSI+WFSHJFSI.SINFFYFS JSYJWUWNXJ[FQZJTK*:7RNQQNTSKWTR&QKFSFW*QJHYWNH8^XYJRX,WTZU ·&QKFSFW¸TKYMJ0NSLITRTK8FZIN&WFGNF&QKFSFWNXFRFOTWUQF^JWNSYMJJQJHYWNHFQ RFSZKFHYZWNSLGZXNSJXXNSHQZINSLYMJRFSZKFHYZWNSLTKJQJHYWNHFQHTSXYWZHYNTSUWTIZHYXFX\JQQFXWJQFYJIJSLNSJJWNSLXJW[NHJX



8ZGXJVZJSYQ^TSYM2FWHMYMJ,WTZUFQTSL\NYMNYXXZGXNINFW^(,.SYJWSFYNTSFQ';HTRUQJYJIYMJXFQJZUTSJ]JHZYNTSTK8MFWJ5ZWHMFXJ&LWJJRJSYX FSITYMJWWJQFYJIYWFSXFHYNTSFQITHZRJSYX\NYM&QKFSFW*QJHYWNH11(FSI?.;&UQNHFHNTSJX^9JHMSTQTLNF819MZX?.;FZYTRFYNTS.SINF1NRNYJIYMJ\MTQQ^ T\SJIXZGXNINFW^MTZXNSLYMJ.SINF&ZYTRFYNTS'ZXNSJXXHJFXJIYTGJFXZGXNINFW^TKYMJ(TRUFS^



9MJ)NXHTSYNSZJITUJWFYNTSXMF[JGJJSINXHQTXJIFX·&ZYTRFYNTS8^XYJRX¸XJLRJSYXJUFWFYJQ^ Sale of Transmission and Distribution (T&D) business )ZWNSLYMJUWJ[NTZX^JFWJSIJIXY2FWHMYMJ,WTZUJSYJWJINSYTGNSINSLYWFSXFHYNTSFLWJJRJSY\NYM+NWXY7JXJW[JKTWXFQJTKYWFSXRNXXNTSFSIINXYWNGZYNTS 9 )GZXNSJXXJXFY.SITSJXNF-ZSLFW^.WJQFSI+WFSHJ3TWYM&RJWNHFFSI'JQLNZRFYFSJSYJWUWNXJ[FQZJTK¾RNQQNTS+NWXY7JXJW[JNXFQJFINSLLQTGFQUWN[FYJ JVZNY^FSINSKWFXYWZHYZWJNS[JXYTWJ]HQZXN[JQ^KTHZXJITSJSJWL^



-T\J[JWYMJ,WTZUHTZQISTYHTRUQJYJYMJINXUTXFQTK9 )GZXNSJXXFXYMJ,WTZUYJWRNSFYJI8MFWJ5ZWHMFXJ&LWJJRJSYJSYJWJINSYT\NYM+NWXY7JXJW[JFS TKKXMTWJUWN[FYJJVZNY^ 5*ÁWRKTWXFQJTKT[JWXJFX5T\JW9 )GZXNSJXXJXTKYMJ,WTZUFY-ZSLFW^.WJQFSI+WFSHJ:8FSI'JQLNZR9MJ,WTZU\NQQHTSYNSZJYT NIJSYNK^SJ\GZ^JWXKTWYMJXFQJTKYMJXJGZXNSJXXJXNSSJFWKZYZWJFSIMJSHJYMJXJGZXNSJXXJX\NQQHTSYNSZJYTGJWJÂJHYJIFXINXHTSYNSZJITUJWFYNTSX



2TWJT[JWIZWNSLYMJ^JFWJSIJIXY2FWHMYMJ,WTZUMFXIJHNIJIYTHTSYNSZJ\NYMGZXNSJXXFY.SITSJXNFFSIFHHTWINSLQ^YMJUWTÁYFSIQTXXXYFYJRJSY TKYMJUWJ[NTZX^JFWMFXGJJSWJXYFYJI



+ZWYMJW YMJ ,WTZU FSSTZSHJI YMJ IJHNXNTS TK NYX 'TFWI TK )NWJHYTWX YT XJQQ (, 5T\JW 8TQZYNTSX 1YI .SINF 'ZXNSJXX TK 5T\JW 8^XYJRX KTHZXJX TS UT\JW YWFSXRNXXNTSINXYWNGZYNTSUT\JWXTQZYNTSXXJYYNSLZUTKNSYJLWFYJITSXMTWJFSITKKXMTWJUT\JWX^XYJRXFSIFXXTHNFYJIXJW[NHJXGZXNSJXXJX&Y2FWHM 5T\JW8TQZYNTSX1YI .SINFMFXGJJSHQFXXNÁJIFXFINXHTSYNSZJITUJWFYNTS



9MJ ,WTZU IJRJWLJI NYX (TSXZRJW UWTIZHYX GZXNSJXX ZSNY NSYT F XJUFWFYJ HTRUFS^ \MTQQ^ T\SJI XZGXNINFW^ TK (WTRUYTS ,WJF[JX YNQQ WI 2FWHM  (WTRUYTS,WJF[JX(TSXZRJW*QJHYWNHFQX1NRNYJI ·(,(*1¸\NYMJKKJHYKWTRXY4HYTGJW+TWYMJ^JFWJSIJIXY2FWHMWJXZQYXZUYTYM8JUYJRGJW MF[JGJJSUWJXJSYJIZSIJWUWTÁYTWQTXXKWTRINXHTSYNSZJITUJWFYNTSX

Consumer Products



9MJ)NXHTSYNSZJITUJWFYNTSXMF[JGJJSINXHQTXJIFX·(TSXZRJW5WTIZHYX¸XJLRJSYXJUFWFYJQ^ Power Distribution 4SXY/ZSJYMJ,WTZUMFIJSYJWJINSYT5T\JW)NXYWNGZYNTS+WFSHMNXJJ&LWJJRJSY ·)+&¸\NYM2FMFWFXMYWF8YFYJ*QJHYWNHNY^)NXYWNGZYNTS(TRUFS^1YI ·28*)(1¸KTWINXYWNGZYNTSTKUT\JWNS/FQLFTSWJLNTSTK2FMFWFXMYWF.SINF



&XUJWYMJYJWRXTKYMJFWWFSLJRJSYYMJ,WTZUMFITGYFNSJIYMJWNLMY ·KWFSHMNXJ¸YTINXYWNGZYJYMJJQJHYWNHNY^KTWYMJUJWNTITK^JFWXYTYMJUZGQNHFYQFWLJ



28*)(1XMFQQXZUUQ^XFQJJQJHYWNHNY^YTYMJ,WTZUFYWFYJUWJXHWNGJIZSIJWWJLZQFYTW^LZNIJQNSJX 2*7(INWJHYN[JXTSQTFIXMJIINSL9MJ,WTZUXMFQQINXYWNGZYJ FSIXZUUQ^YMJJQJHYWNHNY^FYYMJYFWNKKIJYJWRNSJIG^YMJWJLZQFYTW^FZYMTWNYNJX



9MJ ,WTZU XMFQQ HTSIZHY STWRFQ RFNSYJSFSHJ FHYN[NYNJX TK SJY\TWP FSI TYMJW FXXJYX YT RFNSYFNS ZSNSYJWWZUYJI XJW[NHJ 9MJ ,WTZU NX F UWN[FYJ TUJWFYTW FSI 28*)(1NXF,T[JWSRJSYGTI^9MJ,WTZUZSIJWYFPJXTGQNLFYNTSTKUZGQNHXJW[NHJLWFSYJIG^28*)(19MZXYMJFWWFSLJRJSYNXFUZGQNHYTUWN[FYJXJW[NHJ HTSHJXXNTS9MJJQJHYWNHNY^INXYWNGZYNTSXJW[NHJNXYTYFQQ^WJLZQFYJIG^YMJ28*)(1TWTYMJW,T[JWSRJSYWJLZQFYTW^FZYMTWNYNJX



28*)(1MFILN[JSWNLMYYTYMJ,WTZUYTZXJNYXINXYWNGZYNTSFXXJYX\MNHM\NQQFQ\F^XGJQTSLYT28*)(1)ZWNSLYMJYJSZWJTKYMJFWWFSLJRJSYNKYMJ,WTZUNSHZWX FS^HFUNYFQJ]UJSINYZWJYMJXFRJXMFQQ[JXY\NYM28*)(1FYYMJJSITKYMJHTSYWFHY28*)(1XMFQQWJNRGZWXJYMJ,WTZUKTWYMJHFUNYFQJ]UJSINYZWJNSHZWWJIFY YMJYMJS[FQZJHFQHZQFYJIGFXJITSUWJIJYJWRNSJIIJUWJHNFYNTSWFYJ9MZX28*)(1HTSYWTQXXNLSNÁHFSYWJXNIZFQNSYJWJXYNSYMJHTSHJXXNTSFXXJYX&HHTWINSLQ^ YMJ,WTZUMFIFHTSYWFHYZFQWNLMYYTWJHJN[JHFXMKWTR28*)(1KTWYMJHFUNYFQJ]UJSINYZWJNSHZWWJI



9MJWJKTWJYMJFWWFSLJRJSYNXF8JW[NHJHTSHJXXNTSFWWFSLJRJSYZSIJW&UUJSIN]&YT.SI&89MJ,WTZUMFIFHTSYWFHYZFQWNLMYYTWJHJN[JYMJWJXNIZFQ[FQZJ TKYMJHFUNYFQJ]UJSINYZWJNSHZWWJIZSIJWYMJFWWFSLJRJSYFSIFHHTWINSLQ^\NQQWJHTLSNXJÁSFSHNFQFXXJY+ZWYMJWYMJ,WTZUMFIWNLMYYTHMFWLJYMJHTSXZRJWX KTWYMJXJW[NHJXFSIYMJWJKTWJYMJWJ\FXFSNSYFSLNGQJFXXJY



9MJWJ[JSZJXFSIQTXXJXNSWJXUJHYTK8JW[NHJHTSHJXXNTSFWWFSLJRJSYXWJHTLSNXJIIZWNSLYMJ^JFWFWJFXKTQQT\X 5FWYNHZQFWX





7J[JSZJKWTRTUJWFYNTSX

-



4YMJWNSHTRJ

-

 

Total (A) Expenses related to Power distribution business 2FYJWNFQHTXY 4YMJWJ]UJSXJ *RUQT^JJGJSJÁYXJ]UJSXJ &RTWYNXFYNTSTKNSYFSLNGQJFXXJYX Total (B) Loss before tax recognised during the period (C)= (A)-(B)

-



27.72



-



27.72

 

(27.72)





(TSXJVZJSY YT YMJ HJWYFNS ZSWJXTQ[JI INXUZYJX FWNXNSL TZY TK YMJ )NXYWNGZYNTS +WFSHMNXJJ &LWJJRJSY )+& TK YMJ ,WTZU \NYM 2FMFWFXMYWF 8YFYJ *QJHYWNHNY^ )NXYWNGZYNTS (TRUFS^ 1NRNYJI 28*)(1 FY /FQLFTS NS 2FMFWFXMYWF 28*)(1 MFI J]JWHNXJI NYX XYJU NS WNLMYX FSI YFPJS T[JW YMJ )NXYWNGZYNTS +WFSHMNXJJ NS /FQLFTSKWTRYMJ,WTZU\NYMJKKJHYKWTRYM&ZLZXY&HHTWINSLQ^YMJ,WTZUMFXHQFXXNÁJI5T\JW)NXYWNGZYNTS8JLRJSYFXINXHTSYNSZJITUJWFYNTSX



9MJ ,WTZU FSI 28*)(1 MF[J WFNXJI IJRFSI TS JFHM TYMJW FSI YMJ RFYYJW NX ZSIJW INXUZYJ 9MJ ,WTZU FSI 28*)(1 FWJ NS UWTHJXX TK HTSXYNYZYNSL YMJ 5JWRFSJSY)NXUZYJ7JXTQZYNTS'TI^ 5)7'9MJÁSFSHNFQNRUFHYTKYMJINXUZYJ\NQQGJPST\SFKYJWYMJÁSFQTZYHTRJKWTR5)7'



9MJ,WTZUFSSTZSHJIYMJIJHNXNTSTKNYX'TFWITK)NWJHYTWXYTXJQQ(WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI (,(51&YXY2FWHM(,(51MFX GJJSHQFXXNÁJIFXFINXHTSYNSZJITUJWFYNTSFSIINXHQTXJIFX·4YMJWX¸XJLRJSYXJUFWFYJQ^

Others

202

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

45. DISCONTINUED OPERATIONS (Contd.) :[H[LTLU[VMWYVĂ&#x201A;[HUKSVZZVM[OLKPZJVU[PU\LKVWLYH[PVUZ 



Automation 5T\JW 9 ) 8^XYJRX )NXYWNGZYNTS Revenue

2661.21

637.22

Automation Consumer 5T\JW 8^XYJRX 5WTIZHYX )NXYWNGZYNTS 9 )

4YMJWX

Total

-

3298.43









-

4YMJWX

Total

 

*]UJSXJX SJYTKTYMJWNSHTRJ

2948.47

693.91

27.72

0.02

3670.12









5WTĂ Y QTXXGJKTWJYF]KWTRINXHTSYNSZJITUJWFYNTS

(287.26)

(56.69)

(27.72)

(0.02)

(371.69)











4.72

6.13

-

-

10.85













(282.54)

(50.56)

(27.72)

(0.02)

(360.84)













9F]NSHTRJ J]UJSXJ 5WTĂ Y QTXXFKYJWYF]KWTRINXHTSYNSZJITUJWFYNTS 1TXXTSXFQJTK&ZYTRFYNTS'ZXNSJXX SJYTKYF]J]UJSXJ` Nil) 5WTĂ Y QTXXFKYJWYF]KWTRINXHTSYNSZJITUJWFYNTSX

  

-

239.78

-

-

239.78













(282.54)

(290.34)

(27.72)

(0.02)

(600.62)

(663.78)

(2.59)

120.73

(27.17)

(1.09)

(573.90)

The major classes of assets and liabilities of the discontinued operation are as under As at 

As at 

As at 

As at 

As at 

As at 

9 )

5T\JW )NXYWNGZYNTS

4YMJWX

9 )

5T\JW )NXYWNGZYNTS

Consumer 5WTIZHYX

Assets 970.07

-

-







4YMJW.SYFSLNGQJFXXJYX

5WTUJWY^UQFSYFSIJVZNURJSY

67.09

-

-







Goodwill

16.41

-

-







-

-

-







Intangible assets under development 3TSHZWWJSYĂ SFSHNFQFXXJYXQTFSX Inventories

3.70

-

-







526.52

0.10

-







Investment

314.11

-

-







Trade receivables

441.21

130.90

-







(FXMFSIHFXMJVZN[FQJSYX

113.34

0.03

0.05







)JKJWWJIYF]FXXJYX

106.76

-

-











(ZWWJSYĂ SFSHNFQFXXJYXQTFSX 4YMJWHZWWJSYFXXJYX (ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSL(

112.60

-

-



291.35 2963.16

29.60 160.63

0.05















Liabilities 3TSHZWWJSYĂ SFSHNFQQNFGNQNYNJXÂłGTWWT\NSLX

422.47

-

-





)JKJWWJIYF]QNFGNQNYNJX

201.76

-

-







17.48

-

-







4YMJWQTSLYJWRQNFGNQNYNJX (ZWWJSYĂ SFSHNFQQNFGNQNYNJXÂłGTWWT\NSLX Trade payables

52.61

-

-







554.99

0.69

0.02







4YMJWHZWWJSYĂ SFSHNFQQNFGNQNYNJX

305.13

-

-







4YMJWHZWWJSYQNFGNQNYNJX

361.84

-

0.00







181.93 2098.21

0.29 0.98

0.02













864.95

159.65

0.03







Cash Flows





4UJWFYNSL

(479.17)



Investing

(304.62)



Financing

(231.17)



5WT[NXNTSX 3PHIPSP[PLZKPYLJ[S`HZZVJPH[LK^P[OHZZL[ZJSHZZPĂ&#x201A;LK as held for sale (B) Net assets / (liabilities) directly associated with disposal group (A-B)

5L[JHZOĂ&#x192;V^ZH[[YPI\[HISL[V[OLVWLYH[PUNPU]LZ[PUNHUKĂ&#x201A;UHUJPUNHJ[P]P[PLZVMKPZJVU[PU\LKVWLYH[PVUZ!

FINANCIALS

203


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

45. DISCONTINUED OPERATIONS (Contd.) Disposal of Automation business Consideration received

5FWYNHZQFWX



(TSXNIJWFYNTSWJHJN[JINSHFXMFSIHFXMJVZN[FQJSYX

788.67

Total consideration received

788.67

Analysis of assets and liabilities over which control was lost w.e.f. 06th March, 2017

 Assets Non-current assets 5WTUJWY^UQFSYFSIJVZNURJSY (FUNYFQ\TWPNSUWTLWJXX

133.24 0.37

4YMJW.SYFSLNGQJFXXJYX

307.42

Goodwill

258.19

Intangible assets under development 3TSHZWWJSYĂ SFSHNFQFXXJYXQTFSX )JKJWWJIYF]FXXJYX

58.75 1.88 108.94

Current assets Inventories

146.03

Trade receivables

172.26

(ZWWJSYĂ SFSHNFQFXXJYXQTFSX 4YMJWHZWWJSYFXXJYX Total assets (A)

0.70 81.75 1269.53

Liabilities Non-current liabilities )JKJWWJIYF]QNFGNQNYNJX

97.69

Current liabilities Trade payables 4YMJWHZWWJSYQNFGNQNYNJX 5WT[NXNTSX Total liabilities (B) Net assets disposed of (A - B)

120.00 14.26 2.26 234.21 1035.32

Gain / (loss) on disposal of subsidiaries

 Consideration received

788.67

3JYFXXJYXINXUTXJITK

1035.32

&RTZSYXWJHTLSNXJINS4(.NSWJQFYNTSYTXZGXNINFWNJXWJHQFXXNĂ JIYTXYFYJRJSYTKUWTĂ YFSIQTXX

6.87 (239.78)

Gain / (loss) on disposal

204

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

46. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS  

9MJKFNW[FQZJXTKYMJÁSFSHNFQFXXJYXFSIQNFGNQNYNJXFWJNSHQZIJIFYYMJFRTZSYFY\MNHMYMJNSXYWZRJSYHTZQIGJJ]HMFSLJINSFHZWWJSYYWFSXFHYNTSGJY\JJS\NQQNSL UFWYNJXTYMJWYMFSNSFKTWHJITWQNVZNIFYNTSXFQJ 9MJKTQQT\NSLRJYMTIXFSIFXXZRUYNTSX\JWJZXJIYTJXYNRFYJYMJKFNW[FQZJX  +FNW[FQZJTKHFXMFSIXMTWYYJWRIJUTXNYXYWFIJFSITYMJWXMTWYYJWRWJHJN[FGQJXYWFIJUF^FGQJXTYMJWHZWWJSYÁSFSHNFQQNFGNQNYNJXXMTWYYJWRQTFSXKWTR GFSPXFSITYMJWÁSFSHNFQNSXYNYZYNTSXFUUWT]NRFYJYMJNWHFWW^NSLFRTZSYXQFWLJQ^IZJYTYMJXMTWYYJWRRFYZWNYNJXTKYMJXJNSXYWZRJSYX  +NSFSHNFQ NSXYWZRJSYX \NYM Á]JI FSI [FWNFGQJ NSYJWJXY WFYJX FWJ J[FQZFYJI G^ YMJ ,WTZU GFXJI TS UFWFRJYJWX XZHM FX NSYJWJXY WFYJX FSI NSIN[NIZFQ HWJINY \TWYMNSJXXTKYMJHTZSYJWUFWY^'FXJITSYMNXJ[FQZFYNTSFQQT\FSHJXFWJYFPJSYTFHHTZSYKTWYMJJ]UJHYJIQTXXJXTKYMJXJWJHJN[FGQJX&HHTWINSLQ^KFNW[FQZJ TKXZHMNSXYWZRJSYXNXSTYRFYJWNFQQ^INKKJWJSYKWTRYMJNWHFWW^NSLFRTZSYX 

9MJ,WTZUZXJXYMJKTQQT\NSLMNJWFWHM^KTWIJYJWRNSNSLFSIINXHQTXNSLYMJKFNW[FQZJTKÁSFSHNFQNSXYWZRJSYXG^[FQZFYNTSYJHMSNVZJ



1J[JQVZTYJI ZSFIOZXYJIUWNHJXNSFHYN[JRFWPJYXKTWNIJSYNHFQFXXJYXTWQNFGNQNYNJX



1J[JQTYMJWYJHMSNVZJXKTW\MNHMFQQNSUZYX\MNHMMF[JFXNLSNÁHFSYJKKJHYTSYMJWJHTWIJIKFNW[FQZJFWJTGXJW[FGQJJNYMJWINWJHYQ^TWNSINWJHYQ^



1J[JQYJHMSNVZJX\MNHMZXJNSUZYXYMFYMF[JFXNLSNÁHFSYJKKJHYTSYMJWJHTWIJIKFNW[FQZJYMFYFWJSTYGFXJITSTGXJW[FGQJRFWPJYIFYF Carrying amount As at 

Financial assets at amortised cost: Trade receivables 1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY 1TFSXFSITYMJWWJHJN[FGQJX HZWWJSY

Fair value 1J[JQ

1J[JQ

1J[JQ

1877.15

-

-

-

6.65

-

-

5.55

76.25

-

-

-

0.44

0.44

-

-

Cash and bank balances

760.71

-

-

-

'FSPIJUTXNY

149.03

-

-

-

7.96

-

-

-

2878.19

0.44

-

5.55

Investments

4YMJWÁSFSHNFQWJHJN[FGQJX Total -PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVÂ[VYSVZZ! )JWN[FYN[JNSXYWZRJSYX

16.29

-

16.29

-

Investments

41.11

0.98

32.07

8.06

Total

57.40

0.98

48.36

8.06

Financial assets at fair value through other comprehensive income: Investments

151.80

-

-

151.80

Total

151.80

-

-

151.80

Financial liabilities at amortised cost: 1TSLYJWRQTFSXKWTRGFSP

-

791.21

-

791.21

.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSX

0.12

-

-

-

Finance lease obligation

0.04

-

-

0.04

8MTWYYJWRQTFSXKWTRGFSP Trade and other payables 4YMJWÁSFSHNFQQNFGNQNYNJX STSHZWWJSY 4YMJWÁSFSHNFQQNFGNQNYNJX HZWWJSY Total

710.67

-

-

-

1383.14

-

-

-

1.14

-

-

0.95

116.71 3003.03

-

791.21

0.99

FINANCIALS

205


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

46. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS (Contd.) Carrying amount

Fair value

As at 

1J[JQ

1J[JQ







1J[JQ

Financial assets at amortised cost: Trade receivables 1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY 1TFSXFSITYMJWWJHJN[FGQJX HZWWJSY



 















Cash and bank balances









'FSPIJUTXNY

























Investments

4YMJWĂ SFSHNFQWJHJN[FGQJX Total



-PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVĂ&#x201A;[VYSVZZ! )JWN[FYN[JNSXYWZRJSYX









Investments









Total









Financial assets at fair value through other comprehensive income: Investments









Total























 

Financial liabilities at amortised cost: 1TSLYJWRQTFSXKWTRGFSPFSIĂ SFSHNFQNSXYNYZYNTS .SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSX Finance lease obligation 8MTWYYJWRQTFSXKWTRGFSP Trade and other payables 4YMJWĂ SFSHNFQQNFGNQNYNJX STSHZWWJSY 4YMJWĂ SFSHNFQQNFGNQNYNJX HZWWJSY Total





















 























)ZWNSLYMJWJUTWYNSLUJWNTIJSINSLXY2FWHMFSIXY2FWHMYMJWJ\JWJSTYWFSXKJWXGJY\JJS1J[JQFSI1J[JQKFNW[FQZJRJFXZWJRJSYX 

+LZJYPW[PVUVMZPNUPĂ&#x201A;JHU[\UVIZLY]HISLPUW\[Z[V]HS\H[PVU! 9MJKTQQT\NSLYFGQJXMT\XYMJ[FQZFYNTSYJHMSNVZJXFSINSUZYXZXJIKTWĂ SFSHNFQNSXYWZRJSYX

.SYJWJXYGJFWNSLQTFSXFSIGTWWT\NSLX



As at As at   )NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

1TFSXFSITYMJWWJHJN[FGQJX STSHZWWJSY

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

Investments

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

)JWN[FYN[JNSXYWZRJSYX

'FXJITSVZTYJXKWTR'FSPX  Financial institutions

Finance leases obligations

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

4YMJWĂ SFSHNFQQNFGNQNYNJX STSHZWWJSY

)NXHTZSYJI(FXMĂ&#x201A;T\RJYMTI using risk adjusted discount rate

9MJKTQQT\NSLYFGQJXMT\XFWJHTSHNQNFYNTSKWTRYMJTUJSNSLGFQFSHJXYTYMJHQTXNSLGFQFSHJXKTW1J[JQKFNW[FQZJX ` crore Balance as at 1-04-2015 Less : +FNW[FQZJQTXXWJHTLSNXJINS4YMJW(TRUWJMJSXN[J.SHTRJ Balance as at 31-03-2016 Less :+FNW[FQZJQTXXWJHTLSNXJINS4YMJW(TRUWJMJSXN[J.SHTRJ Balance as at 31-03-2017

206

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

  198.62  151.80


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 

9MJ,WTZU¸XÁSFSHNFQWNXPRFSFLJRJSYNXFSNSYJLWFQUFWYTKMT\YTUQFSFSIJ]JHZYJNYXGZXNSJXXXYWFYJLNJX9MJ,WTZU¸XÁSFSHNFQWNXPRFSFLJRJSYUTQNH^NXXJY G^YMJ2FSFLNSL'TFWI



2FWPJYWNXPNXYMJWNXPTKQTXXTKKZYZWJJFWSNSLXKFNW[FQZJXTWKZYZWJHFXMÂT\XYMFYRF^WJXZQYKWTRFHMFSLJNSYMJUWNHJTKFÁSFSHNFQNSXYWZRJSY9MJ[FQZJTKF ÁSFSHNFQNSXYWZRJSYRF^HMFSLJFXFWJXZQYTKHMFSLJXNSYMJNSYJWJXYWFYJXKTWJNLSHZWWJSH^J]HMFSLJWFYJXJVZNY^UWNHJXFSITYMJWRFWPJYHMFSLJXYMFYFKKJHY RFWPJYWNXPXJSXNYN[JNSXYWZRJSYX2FWPJYWNXPNXFYYWNGZYFGQJYTFQQRFWPJYWNXPXJSXNYN[JÁSFSHNFQNSXYWZRJSYXNSHQZINSLNS[JXYRJSYXFSIIJUTXNYXKTWJNLSHZWWJSH^ WJHJN[FGQJXUF^FGQJXFSIQTFSXFSIGTWWT\NSLX



9MJ ,WTZU RFSFLJX RFWPJY WNXP YMWTZLM F YWJFXZW^ IJUFWYRJSY \MNHM J[FQZFYJX FSI J]JWHNXJX NSIJUJSIJSY HTSYWTQ T[JW YMJ JSYNWJ UWTHJXX TK RFWPJY WNXP RFSFLJRJSY 9MJ YWJFXZW^ IJUFWYRJSY WJHTRRJSIX WNXP RFSFLJRJSY TGOJHYN[JX FSI UTQNHNJX \MNHM FWJ FUUWT[JI G^ 8JSNTW 2FSFLJRJSY FSI YMJ &ZINY (TRRNYYJJ9MJFHYN[NYNJXTKYMNXIJUFWYRJSYNSHQZIJRFSFLJRJSYTKHFXMWJXTZWHJXNRUQJRJSYNSLMJILNSLXYWFYJLNJXKTWKTWJNLSHZWWJSH^J]UTXZWJXGTWWT\NSL XYWFYJLNJXFSIJSXZWNSLHTRUQNFSHJ\NYMRFWPJYWNXPQNRNYXFSIUTQNHNJX Interest rate risk



.SYJWJXYWFYJWNXPNXYMJWNXPYMFYYMJKFNW[FQZJTWKZYZWJHFXMÂT\XTKFÁSFSHNFQNSXYWZRJSY\NQQÂZHYZFYJGJHFZXJTKHMFSLJXNSRFWPJYNSYJWJXYWFYJX.STWIJW YTTUYNRN_JYMJ,WTZU¸XUTXNYNTS\NYMWJLFWIYTNSYJWJXYNSHTRJFSINSYJWJXYJ]UJSXJXFSIYTRFSFLJYMJNSYJWJXYWFYJWNXPYWJFXZW^UJWKTWRXFHTRUWJMJSXN[J HTWUTWFYJNSYJWJXYWFYJWNXPRFSFLJRJSYG^GFQFSHNSLYMJUWTUTWYNTSTKÁ]JIWFYJFSIÂTFYNSLWFYJÁSFSHNFQNSXYWZRJSYXNSNYXYTYFQUTWYKTQNT Exposure to interest rate risk

5FWYNHZQFWX Floating rate borrowings

As at 

As at 

1190.46



Interest rate sensitivity (JOHUNLVMIHZPZWVPU[ZPUPU[LYLZ[YH[LZ^V\SKOH]LMVSSV^PUNPTWHJ[VUWYVÂ[ILMVYL[H_ 



GUNSHWJFXJ)JHWJFXJNSUWTKNY

(2.97)

 

GUIJHWJFXJ.SHWJFXJNSUWTKNY

2.97



5FWYNHZQFWX

Foreign currency risk 9MJ,WTZUTUJWFYJXNSYJWSFYNTSFQQ^FSIUTWYNTSTKYMJGZXNSJXXNXYWFSXFHYJINSXJ[JWFQHZWWJSHNJXFSIHTSXJVZJSYQ^YMJ,WTZUNXJ]UTXJIYTKTWJNLSJ]HMFSLJ WNXPYMWTZLMNYXXFQJXFSIXJW[NHJXNST[JWXJFXFSIUZWHMFXJXKWTRT[JWXJFXXZUUQNJWXNS[FWNTZXKTWJNLSHZWWJSHNJX+TWJNLSHZWWJSH^J]HMFSLJWFYJJ]UTXZWJNX UFWYQ^GFQFSHJIG^UZWHMFXNSLTKLTTIXHTRRTINYNJXFSIXJW[NHJXNSYMJWJXUJHYN[JHZWWJSHNJX 

9MJ,WTZUJ[FQZFYJXJ]HMFSLJWFYJJ]UTXZWJFWNXNSLKWTRKTWJNLSHZWWJSH^YWFSXFHYNTSXFSIYMJ,WTZUKTQQT\XJXYFGQNXMJIWNXPRFSFLJRJSYUTQNHNJXNSHQZINSL YMJZXJTKIJWN[FYN[JXQNPJKTWJNLSJ]HMFSLJKTW\FWIHTSYWFHYXYTMJILJJ]UTXZWJYTKTWJNLSHZWWJSH^WNXP +TWJNLSHZWWJSH^J]UTXZWJFXFYXY2FWHM Trade receivables 1TFSXFSITYMJWWJHJN[FGQJX 'FSPGFQFSHJXNSHZWWJSYFHHTZSYXFSIYJWRIJUTXNYFHHTZSYX Trade payables

:8)

*ZWT

,'5

4YMJWX

Total

355.06

195.55

3.19

96.54

650.34

8.71

0.23

-

42.25

51.19

50.73

102.26

1.53

43.90

198.42

(147.61)

(182.00)

(0.38)

(65.35)

(395.34)

1TSLYJWRGTWWT\NSLX

-

(0.20)

-

-

(0.20)

8MTWYYJWRGTWWT\NSLX

-

-

-

-

-

(17.68)

(230.79)

-

(5.31)

(253.78)

4YMJWXMTWYYJWRÁSFSHNFQQNFGNQNYNJX +TW\FWIHTSYWFHYXKTWWJHJN[FGQJ +TW\FWIHTSYWFHYXKTWQTFS

+TWJNLSHZWWJSH^J]UTXZWJFXFYXY2FWHM Trade receivables

7.99

-

-

-

7.99

-

(8.30)

-

-

(8.30)

:8)

*ZWT

,'5

4YMJWX

Total











1TFSXFSITYMJWWJHJN[FGQJX











'FSPGFQFSHJXNSHZWWJSYFHHTZSYXFSIYJWRIJUTXNYFHHTZSYX











 

 

 

 

 

1TSLYJWRGTWWT\NSLX

 

 





 

8MTWYYJWRGTWWT\NSLX



 





 

 

 

 

 

 













 





 

Trade payables

4YMJWXMTWYYJWRÁSFSHNFQQNFGNQNYNJX +TW\FWIHTSYWFHYXKTWWJHJN[FGQJ +TW\FWIHTSYWFHYXKTWQTFS

FINANCIALS

207


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.) Foreign currency sensitivity  NSHWJFXJTWIJHWJFXJNSKTWJNLSJ]HMFSLJWFYJX\NQQMF[JYMJKTQQT\NSLNRUFHYTSUWTÁYGJKTWJYF]  5FWYNHZQFWX



 NSHWJFXJ

 IJHWJFXJ

 NSHWJFXJ

:8)

0.53

(0.53)





*ZWT

9.97

(9.97)





,'5

(0.02)

0.02





1.28

(1.28)





11.76

(11.76)





4YMJWX .SHWJFXJ IJHWJFXJNSUWTKNYTWQTXX

 IJHWJFXJ

 NSHWJFXJTWIJHWJFXJNSKTWJNLSJ]HMFSLJWFYJX\NQQMF[JYMJKTQQT\NSLNRUFHYTSJVZNY^  5FWYNHZQFWX



 NSHWJFXJ

 IJHWJFXJ

:8)

1.14

(1.14)



*ZWT

(12.82)

12.82





,'5

0.01

(0.01)





1.11

(1.11)





(10.56)

10.56





4YMJWX .SHWJFXJ IJHWJFXJNSJVZNY^

 NSHWJFXJ

 IJHWJFXJ 

Credit risk 

(WJINYWNXPFWNXJXKWTRYMJUTXXNGNQNY^YMFYHTZSYJWUFWY^RF^STYGJFGQJYTXJYYQJYMJNWTGQNLFYNTSXFXFLWJJI9TRFSFLJYMNXYMJ,WTZUUJWNTINHFQQ^FXXJXXJXYMJ ÁSFSHNFQWJQNFGNQNY^TKHZXYTRJWXYFPNSLNSYTFHHTZSYYMJÁSFSHNFQHTSINYNTSHZWWJSYJHTSTRNHYWJSIXFSIFSFQ^XNXTKMNXYTWNHFQGFIIJGYXFSIFLJNSLTKFHHTZSYX WJHJN[FGQJ.SIN[NIZFQWNXPQNRNYXFWJXJYFHHTWINSLQ^



9MJLWTZUHTSXNIJWXYMJUWTGFGNQNY^TKIJKFZQYZUTSNSNYNFQWJHTLSNYNTSTKFXXJYFSI\MJYMJWYMJWJMFXGJJSFXNLSNÁHFSYNSHWJFXJNSHWJINYWNXPTSFSTSLTNSLGFXNX YMWTZLMTZYJFHMWJUTWYNSLUJWNTI9TFXXJXX\MJYMJWYMJWJNXFXNLSNÁHFSYNSHWJFXJNSHWJINYWNXPYMJ,WTZUHTRUFWJXYMJWNXPTKFIJKFZQYTHHZWWNSLTSYMJFXXJY FXFYYMJWJUTWYNSLIFYJ\NYMYMJWNXPTKIJKFZQYFXFYYMJIFYJTKNSNYNFQWJHTLSNYNTS.YHTSXNIJWXWJFXTSFGQJFSIXZUUTWYN[JKTW\FWINSLQTTPNSLNSKTWRFYNTSXZHMFX



N

&HYZFQTWJ]UJHYJIXNLSNÁHFSYFI[JWXJHMFSLJXNSGZXNSJXX



NN

&HYZFQTWJ]UJHYJIXNLSNÁHFSYHMFSLJXNSYMJTUJWFYNSLWJXZQYXTKYMJHTZSYJWUFWY^



NNN

+NSFSHNFQTWJHTSTRNHHTSINYNTSXYMFYFWJJ]UJHYJIYTHFZXJFXNLSNÁHFSYHMFSLJYTYMJHTZSYJWUFWY^¸XFGNQNY^YTRJJYNYXTGQNLFYNTSX



N[

8NLSNÁHFSYNSHWJFXJXNSHWJINYWNXPTSTYMJWÁSFSHNFQNSXYWZRJSYXTKYMJXFRJHTZSYJWUFWY^



[

8NLSNÁHFSYHMFSLJXNSYMJ[FQZJTKYMJHTQQFYJWFQXZUUTWYNSLYMJTGQNLFYNTSTWNSYMJVZFQNY^TKYMNWIUFWY^LZFWFSYJJXTWHWJINYJSMFSHJRJSYX



+NSFSHNFQFXXJYXFWJ\WNYYJSTKK\MJSYMJWJNXSTWJFXTSFGQJJ]UJHYFYNTSTKWJHT[JW^XZHMFXFIJGYTWKFNQNSLYTJSLFLJNSFWJUF^RJSYUQFS\NYMYMJ,WTZU9MJ ,WTZUHFYJLTWNXJXFQTFSTWWJHJN[FGQJKTW\WNYJTKK\MJSFIJGYTWKFNQXYTRFPJHTSYWFHYZFQUF^RJSYXLWJFYJWYMFS^JFWXUFXYIZJ<MJWJQTFSXTWWJHJN[FGQJX MF[JGJJS\WNYYJSTKKYMJ,WTZUHTSYNSZJXYTJSLFLJNSJSKTWHJRJSYFHYN[NY^YTFYYJRUYYTWJHT[JWYMJWJHJN[FGQJIZJ<MJWJWJHT[JWNJXFWJRFIJYMJXJFWJ WJHTLSNXJINSUWTÁYTWQTXX Exposure to credit risk

5FWYNHZQFWX

As at 

As at 

Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL) Investments in Government or trust securities

0.44



Investments in debentures or bonds

8.05



4YMJWSTSHZWWJSYNS[JXYRJSYX

27.83



1TSLYJWRQTFSXFSIFI[FSHJX

6.65



4YMJWQTSLYJWRÁSFSHNFQFXXJYX

-



Cash and bank balances

760.50



4YMJWXMTWYYJWRÁSFSHNFQFXXJYX

173.28



8MTWYYJWRQTFSXFSIFI[FSHJX

76.25



1986.98



Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL) Trade receivables 'FQFSHJX\NYMGFSPXNXXZGOJHYYTQT\HWJINYWNXPXIZJYTLTTIHWJINYWFYNSLXFXXNLSJIYTYMJXJGFSPX

208

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.) 9MJFLJNSLFSFQ^XNXTKYMJWJHJN[FGQJX LWTXXTKUWT[NXNTSMFXGJJSHTSXNIJWJIKWTRYMJIFYJYMJNS[TNHJKFQQXIZJ ` crore

5FWYNHZQFWX 31-03-2017 :UYTRTSYMX



YTRTSYMX



2TWJYMFSRTSYMX

 1986.98

31-03-2016 :UYTRTSYMX



YTRTSYMX



2TWJYMFSRTSYMX

 2216.40

9MJKTQQT\NSLYFGQJXZRRFWN_JXYMJHMFSLJNSYMJQTXXFQQT\FSHJXRJFXZWJIZXNSLQNKJYNRJJ]UJHYJIHWJINYQTXXRTIJQ

5FWYNHZQFWX

` crore

As at 1-04-2015

189.30

5WT[NIJIIZWNSLYMJ^JFW



&RTZSYX\WNYYJSTKK

 

7J[JWXFQXTKUWT[NXNTS

 

:S\NSINSLTKINXHTZSY

  

Translation adjustments 9WFSXKJWYTINXHTSYNSZJITUJWFYNTSX

 

As at 31-03-2016

139.39

5WT[NIJIIZWNSLYMJ^JFW



&RTZSYX\WNYYJSTKK

 

7J[JWXFQXTKUWT[NXNTS

 

:S\NSINSLTKINXHTZSY

 

Translation adjustments

 

9WFSXKJWYTINXHTSYNSZJITUJWFYNTSX

  109.83

As at 31-03-2017 3TXNLSNÁHFSYHMFSLJXNSJXYNRFYNTSYJHMSNVZJXTWFXXZRUYNTSX\JWJRFIJIZWNSLYMJWJUTWYNSLUJWNTI Liquidity risk 

1NVZNINY^ WNXP NX IJÁSJI FX YMJ WNXP YMFY YMJ ,WTZU \NQQ STY GJ FGQJ YT XJYYQJ TW RJJY NYX TGQNLFYNTSX TS YNRJ TW FY F WJFXTSFGQJ UWNHJ 9MJ ,WTZU¸X YWJFXZW^ IJUFWYRJSYNXWJXUTSXNGQJKTWQNVZNINY^KZSINSLFX\JQQFXXJYYQJRJSYRFSFLJRJSY.SFIINYNTSUWTHJXXJXFSIUTQNHNJXWJQFYJIYTXZHMWNXPXFWJT[JWXJJSG^XJSNTW RFSFLJRJSY2FSFLJRJSYRTSNYTWXYMJ,WTZU¸XSJYQNVZNINY^UTXNYNTSYMWTZLMWTQQNSLKTWJHFXYXTSYMJGFXNXTKJ]UJHYJIHFXMÂT\X



2FYZWNY^UWTÁQJTKÁSFSHNFQQNFGNQNYNJX



9MJYFGQJGJQT\UWT[NIJXIJYFNQXWJLFWINSLYMJWJRFNSNSLHTSYWFHYZFQRFYZWNYNJXTKÁSFSHNFQQNFGNQNYNJXFYYMJWJUTWYNSLIFYJ

&XFYXY2FWHM

1JXXYMFSTSJ year

1TSLYJWRGTWWT\NSLX

287.41

545.70

-

833.11

.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY

0.12

-

-

0.12

Finance lease obligation

0.04

-

-

0.04

-

1.14

-

1.14

710.67

-

-

710.67

1383.14

-

-

1383.14

116.71

-

-

116.71

4YMJWÁSFSHNFQQNFGNQNYNJX STSHZWWJSY 8MTWYYJWRQTFSXKWTRGFSPX Trade and other payables 4YMJWÁSFSHNFQQNFGNQNYNJX HZWWJSY

YT years

#^JFWX

Total

FINANCIALS

209


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

47. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.) &XFYXY2FWHM

1JXXYMFSTSJ year

1TSLYJWRGTWWT\NSLX

233.81

586.40

7.97

828.18

.SYJWJXYKWJJXFQJXYF]IJKJWWFQQTFSXKWTR8YFYJ,T[JWSRJSY

0.12

-

-

0.12

Finance lease obligation

4.33

4.43

-

8.76

-

1.25

-

1.25

692.21

-

-

692.21

1302.65

-

-

1302.65

128.70

-

-

128.70

4YMJWÁSFSHNFQQNFGNQNYNJX STSHZWWJSY 8MTWYYJWRQTFSXKWTRGFSPX Trade and other payables 4YMJWÁSFSHNFQQNFGNQNYNJX HZWWJSY

YT years

#^JFWX

Total

Capital management +TWYMJUZWUTXJXTKYMJ,WTZU¸XHFUNYFQRFSFLJRJSYHFUNYFQNSHQZIJXNXXZJIHFUNYFQFSIFQQTYMJWJVZNY^WJXJW[JX9MJUWNRFW^TGOJHYN[JTKYMJ,WTZU¸XHFUNYFQ RFSFLJRJSYNXYTRF]NRNXJXMFWJMTQIJW[FQZJ9MJ,WTZURFSFLJXNYXHFUNYFQXYWZHYZWJFSIRFPJXFIOZXYRJSYXNSYMJQNLMYTKHMFSLJXNSJHTSTRNHJS[NWTSRJSY FSIYMJWJVZNWJRJSYXTKYMJÁSFSHNFQHT[JSFSYX 9MJ,WTZURTSNYTWXHFUNYFQZXNSLLJFWNSLWFYNT\MNHMNXYTYFQIJGYIN[NIJIG^YTYFQHFUNYFQUQZXIJGY As at  1502.04

Total debt

As at  

*VZNY^

4111.09



Total debt and equity

5613.13



Gearing ratio

26.76%



Hedging activities and derivatives &XFY

+FNW[FQZJTKKTWJNLSHZWWJSH^KTW\FWIHTSYWFHYXIJXNLSFYJIFXMJILNSLNSXYWZRJSYX

&XFY

Assets

1NFGNQNYNJX

Assets

1NFGNQNYNJX

1.96

1.49





9MJKFNW[FQZJTKIJWN[FYN[JQNFGNQNYNJXMF[JGJJSIJYJWRNSJIZXNSLWFYJXVZTYJIG^YMJ,WTZU¸XGFSPJWXFYYMJWJUTWYNSLIFYJ\MNHMFWJHFQHZQFYJIG^WJKJWJSHJYT YMJRFWPJYNSYJWJXYWFYJXFSIKTWJNLSJ]HMFSLJWFYJX 9MJ,WTZUJSYJWJINSYTKTW\FWIJ]HMFSLJFSIHTRRTINY^HTSYWFHYXYTRFSFLJNYXJ]UTXZWJYTYMJ[FWNFGNQNY^TKHFXMÂT\XUWNRFWNQ^WJQFYJIYTKZYZWJXFQJXFSI UZWHMFXJXTKNS[JSYTWNJXIJSTRNSFYJINSKTWJNLSHZWWJSHNJXT[JWYMJSJ]YRTSYMX &XFYXY2FWHMYMJLFNSTSIJWN[FYN[JXTK`HWTWJ XY2FWHMSJYQTXXTK`HWTWJNSHZWWJIKWTRHMFSLJXNSYMJKFNW[FQZJTKKTW\FWIKTWJNLS J]HMFSLJFSIHTRRTINY^HTSYWFHYXYMFYFWJMNLMQ^JKKJHYN[JMFXGJJSWJHTLSN_JINSMJILNSLWJXJW[J 9MJ,WTZUJ]UJHYXYMFYXZGXYFSYNFQQ^FQQTKYMNXFRTZSY\NQQGJHWJINYJINSYTYMJUWTÁYTWQTXX\NYMNSRTSYMXKWTRYMJWJUTWYNSLIFYJ

210

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

48. DISCLOSURES OF LEASES PURSUANT TO INDIAN ACCOUNTING STANDARD (IND AS) 17 “LEASES” (a) Operating lease commitments - Group as lessor 

9MJ,WTZUMFXSTYJSYJWJINSYTTUJWFYNSLQJFXJX

(b) Operating lease commitments - Group as lessee N

9MJ,WTZUMFXYFPJS[FWNTZXWJXNIJSYNFQHTRRJWHNFQUWJRNXJXFSIUQFSYFSIJVZNURJSYZSIJWHFSHJQQFGQJTUJWFYNSLQJFXJX9MJXJQJFXJFLWJJRJSYXFWJ STWRFQQ^WJSJ\JITSJ]UNW^

NN 9MJ,WTZUMFXYFPJSHJWYFNSFXXJYXTSSTSHFSHJQQFGQJTUJWFYNSLQJFXJYMJKZYZWJRNSNRZRQJFXJUF^RJSYNSWJXUJHYTK\MNHMFWJFXKTQQT\X 2NSNRZR1JFXJ5F^RJSYX

)ZJ\NYMNSTSJ^JFW )ZJTSJYTÁ[J^JFWX









)ZJGJ^TSIÁ[J^JFWX











As at 

As at 

3.24



1.29



-





9MJQJFXJFLWJJRJSYUWT[NIJKTWFSTUYNTSYTYMJ,WTZUYTWJSJ\YMJQJFXJUJWNTIFYYMJJSITKYMJSTSHFSHJQQFGQJUJWNTI9MJWJFWJSTJ]HJUYNTSFQ WJXYWNHYN[JHT[JSFSYXNSYMJQJFXJFLWJJRJSYX        



1JFXJWJSYFQJ]UJSXJNSWJXUJHYTKTUJWFYNSLQJFXJXNX`HWTWJ 5WJ[NTZX^JFW`HWTWJ

49. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS) 33 EARNINGS PER SHARE 5FWYNHZQFWX +FHJ[FQZJTKJVZNY^XMFWJ <JNLMYJIF[JWFLJSZRGJWTKJVZNY^XMFWJXTZYXYFSINSL 5WTKNYKTWYMJ^JFW HTSYNSZNSLTUJWFYNTSX Weighted average earnings per share (basic and diluted) 1TXXKTWYMJ^JFW INXHTSYNSZJITUJWFYNTSX Weighted average earnings per share (basic and diluted) 1TXXKTWYMJ^JFW YTYFQTUJWFYNTSX Weighted average earnings per share (basic and diluted)





`

2.00



3TX

626746142



` crore `

109.76



1.75



` crore `

(600.62)

 

(9.58)



` crore `

(490.86)

 

(7.83)

 





(9.12)



50. EXCEPTIONAL ITEMS 5FWYNHZQFWX &RTZSYUFNIYT\FWIX8FQJXYF]&RSJXY^XHMJRJ &RTZSYUFNIYT\FWIXÁSFQXJYYQJRJSYTKQNYNLFYNTSHQFNRX

(20.00)



.RUFNWRJSYTKLTTI\NQQ

(43.61)

  

5WTÁYTSXFQJTKUTWYNTSTKQFSIFY0FSOZWRFWL2ZRGFN

-

5WTÁYTSXFQJTKNS[JXYRJSYNS/TNSY;JSYZWJ(,1ZH^8\NYHMLJFW1NRNYJI

-



5WT[NXNTSRFIJFLFNSXYQTFSLN[JSYTXZGXNINFWNJXSJYTKJ]HMFSLJLFNS

-

 

Compensation to employees pursuant to voluntary retirement scheme

-

 

4SJYNRJUF^RJSYYTKTWRJW(*4 2FSFLNSL)NWJHYTW

-

 

(72.73)

 

Exceptional Items (net)

51. DISCLOSURE OF SPECIFIED BANK NOTES (SBN) HELD AND TRANSACTED DURING THE PERIOD 8TH NOVEMBER 2016 TO 30TH DECEMBER 2016 AS REQUIRED BY MCA NOTIFICATION G.S.R. 308(E), DATED 30TH MARCH 2017: 8UJHNKNJI 'FSP3TYJX (`)

4YMJW )JSTRNSFYNTS notes (`)







&II5JWRNYYJIWJHJNUYX







1JXX5JWRNYYJIUF^RJSYX



















(QTXNSLHFXMNSMFSIFXTS

1JXX&RTZSYIJUTXNYJINS'FSPX (QTXNSLHFXMNSMFSIFXTS 

Total (`)

9MJYJWR·8UJHNÁJI'FSP3TYJX¸XMFQQMF[JXFRJRJFSNSLUWT[NIJINSYMJSTYNÁHFYNTSTKYMJ,T[JWSRJSYTK.SINFNSYMJ2NSNXYW^TK+NSFSHJ)JUFWYRJSYTK *HTSTRNH&KKFNWXSZRGJW84 *IFYJIYM3T[JRGJW

FINANCIALS

211


` crore

NOTES

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

52. STANDARDS ISSUED BUT NOT YET EFFECTIVE 

.S2FWHMYMJ2NSNXYW^TK(TWUTWFYJ&KKFNWXNXXZJIYMJ(TRUFSNJX .SINFS&HHTZSYNSL8YFSIFWIX &RJSIRJSYX7ZQJXSTYNK^NSLFRJSIRJSYXYT.SI &8·8YFYJRJSYTKHFXMÂT\X¸FSI.SI&8·8MFWJGFXJIUF^RJSY¸9MJFRJSIRJSYXFWJFUUQNHFGQJYTYMJ,WTZUKWTR&UWNQ Amendment to Ind AS 7:



9MJFRJSIRJSYYT.SI&8WJVZNWJXYMJJSYNYNJXYTUWT[NIJINXHQTXZWJXYMFYJSFGQJZXJWXTKÁSFSHNFQXYFYJRJSYXYTJ[FQZFYJHMFSLJXNSQNFGNQNYNJXFWNXNSLKWTR ÁSFSHNSLFHYN[NYNJXNSHQZINSLGTYMHMFSLJXFWNXNSLKWTRHFXMÂT\XFSISTSHFXMHMFSLJXXZLLJXYNSLNSHQZXNTSTKFWJHTSHNQNFYNTSGJY\JJSYMJTUJSNSLFSI HQTXNSLGFQFSHJXNSYMJGFQFSHJXMJJYKTWQNFGNQNYNJXFWNXNSLKWTRÁSFSHNSLFHYN[NYNJXYTRJJYYMJINXHQTXZWJWJVZNWJRJSY



9MJ,WTZUNXJ[FQZFYNSLYMJWJVZNWJRJSYXTKYMJFRJSIRJSYFSIYMJJKKJHYTSYMJÁSFSHNFQXYFYJRJSYX Amendment to Ind AS 102:



9MJFRJSIRJSYYT.SI&8UWT[NIJXXUJHNÁHLZNIFSHJYTRJFXZWJRJSYTKHFXMXJYYQJIF\FWIXRTINÁHFYNTSTKHFXMXJYYQJIF\FWIXFSIF\FWIXYMFYNSHQZIJ FSJYXJYYQJRJSYKJFYZWJNSWJXUJHYTK\NYMMTQINSLYF]JX



(ZWWJSYQ^.SI&8NXSTYFUUQNHFGQJYTYMJ,WTZUFSIMJSHJYMJWJNXSTNRUFHY

53. &RTZSYXXMT\SFXWJUWJXJSYXFRTZSYGJQT\` 7ZUJJX+NKY^9MTZXFSI 54. +NLZWJXKTWYMJUWJ[NTZX^JFWMF[JGJJSWJLWTZUJI\MJWJ[JWSJHJXXFW^

212

As per our report attached

As per our report attached

SHARP & TANNAN

CHATURVEDI & SHAH

Madhav Acharya

K.N. Neelkant

CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS

EXECUTIVE DIRECTOR - FINANCE & CFO

CEO & MANAGING DIRECTOR

+NWR¸X7JLNXYWFYNTS3T<

+NWR¸X7JLNXYWFYNTS3T<

).3

).3

G^YMJMFSITK

G^YMJMFSITK

Vinayak M. Padwal

Parag D. Mehta

Manoj Koul

Gautam Thapar

PARTNER

PARTNER

COMPANY SECRETARY

CHAIRMAN

2JRGJWXMNU3T

2JRGJWXMNU3T



).3

3J\)JQMNYM2F^

3J\)JQMNYM2F^

3J\)JQMNYM2F^

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


FINANCIALS

213

  

(,5T\JW8TQZYNTSX:01NRNYJI

(,5T\JW8^XYJRX'WF_NQ19)&

(,5T\JW8TQZYNTSX8FZIN&WFGNF1NRNYJI

     

(,)WN[JXFSI&ZYTRFYNTS8\JIJS&'

(,)WN[JXFSI&ZYTRFYNTS3JYMJWQFSIX';

(,)WN[JXFSI&ZYTRFYNTS,JWRFS^,RG-

(,2NIIQJ*FXY+?*

(,.SYJWSFYNTSFQ-TQINSLX8NSLFUTWJ59*1NRNYJI

(WTRUYTS,WJF[JX8FQJX3JY\TWP2FQF^XNF8)3'-)

 



(,.SIZXYWNFQ-TQINSLX8\JIJS&'



(,5T\JW:8&.SH



59(,5T\JW8^XYJRX.SITSJXNF

(,8JW[NHJ8^XYJRX+WFSHJ8&8

 

(,5T\JW8^XYJRX(FSFIF.SH





(,8FQJX3JY\TWPX+WFSHJ8&

(,*QJHYWNH8^XYJRX-ZSLFW^?WY



(,5T\JW8^XYJRX.WJQFSI1NRNYJI



 

(,5T\JW8^XYJRX'JQLNZR3;

(,,FS_,JSJWFYTWFSI2TYTW11( KTWRJWQ^(,-TQINSLX-ZSLFW^0KY

 

 



 





&X TK consolidated net assets

(,-TQINSLX'JQLNZR3;

(,.SYJWSFYNTSFQ';

Foreign Subsidiaries :

(WTRUYTS,WJF[JX(TSXZRJW5WTIZHYX1NRNYJI

(,5T\JW8TQZYNTSX1NRNYJI

(,55.&IMJXN[J5WTIZHYX1NRNYJI

Indian subsidiaries:

(,5T\JWFSI.SIZXYWNFQ8TQZYNTSX1NRNYJI

Parent :

3FRJTKYMJJSYNY^NSYMJ,WTZU

Net assets













 

















 





 

 

 



 





Amount ` crore

 



 

 

 

 





 

 







 

 



 



 









 

 

&X TK consolidated UWTKNYTWQTXX



 









 

 





 

 

 





 



 



 

 

 

 





Amount ` crore

8MFWJNSUWTKNYTWQTXX

 

 

 

 

 

 





 

 

 

 

 

 

 



 

 











 

 

&X TK consolidated other comprehensive income

 

 

 

 

 

 





 

 

 

 

 

 

 



 

 











 

 

Amount ` crore

8MFWJNSTYMJWHTRUWJMJSXN[J income

 



 

 











 









 

 

 



 

 







 

 

&X TK consolidated total comprehensive income



 





 

 

 

 

 



 

 

 

 







 





 

 

 





Amount ` crore

8MFWJNSYTYFQHTRUWJMJSXN[J income

ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF ENTERPRISES CONSOLIDATED AS PARENT, SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES FOR THE YEAR ENDED 31st MARCH 2017


214

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017







(,5T\JW&ZYTRFYNTS1NRNYJI

00*Q+N/FUFS

59(WTRUYTS5WNRF8\NYHMLJFW.SITSJXNF

(Investment as per the equity method) 



(,.SYJWSFYNTSFQ';9W (TSY5[Y(T11( KTWRJWQ^5FZ\JQX2NIIQJ*FXY9W (TSY5[Y(T11(

Foreign joint venture:

 

8FZIN5T\JW9WFSXKTWRJWX(T1YI

(Investment as per the equity method)

Foreign associates:

Non-controlling interests in all subsidiaries





















?.;+WFSHJ8&8:



?.;(TRRZSNHFYNTSX8&:









?.;,WNI&ZYTRFYNTS81:





?.;2JYJWNSL8TQZYNTSX81:



?.;.)8RFWY*SJWL^3JY\TWPX



?.;&UQNHFHNTSJX^9JHSTQTLNF81:



Amount ` crore

?.;)T'WF_NQ1YIF



&X TK consolidated net assets

(,&ZYTRFYNTS8^XYJRX:01NRNYJI

3FRJTKYMJJSYNY^NSYMJ,WTZU

Net assets









 





 









 



&X TK consolidated UWTKNYTWQTXX

 









 

 



 

 

 

 



 

Amount ` crore

8MFWJNSUWTKNYTWQTXX





























&X TK consolidated other comprehensive income





























Amount ` crore

8MFWJNSTYMJWHTRUWJMJSXN[J income









 





 









 



&X TK consolidated total comprehensive income

 









 

 



 

 

 

 



 

Amount ` crore

8MFWJNSYTYFQHTRUWJMJSXN[J income

ADDITIONAL INFORMATION, AS REQUIRED UNDER SCHEDULE III TO THE COMPANIES ACT, 2013, OF ENTERPRISES CONSOLIDATED AS PARENT, SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES FOR THE YEAR ENDED 31st MARCH 2017 (Contd.)


ACCOUNTS IN FOREIGN CURRENCY

ACCOUNTS IN FOREIGN CURRENCY 215


STANDALONE BALANCE SHEET

AS AT 31ST MARCH, 2017

&XFY :8)RNQQNTS

&XFY

:8)RNQQNTS

:8)RNQQNTS

:8)RNQQNTS

ASSETS 1.

NON-CURRENT ASSETS: F5WTUJWY^UQFSYFSIJVZNURJSY G(FUNYFQ\TWPNSUWTLWJXX

190.12



1.27



-



I4YMJWNSYFSLNGQJFXXJYX

7.13



(e) Intangible assets under development

4.32



(c) Investment property

K +NSFSHNFQFXXJYX 67.95





NN 1TFSX

1.02





NNN 4YMJWX

7.23



(i) Investments

L 4YMJWSTSHZWWJSYFXXJYX



0.49



279.53 2.

CURRENT ASSETS: (a) Inventories



115.77

(b) Financial assets (i) Investments (ii) Trade receivables 

NNN (FXMFSIHFXMJVZN[FQJSYX



N[ 'FSPGFQFSHJXTYMJWYMFS NNNFGT[J

 

 

85.51



0.20



[ 1TFSX

226.23



[N 4YMJWX

31.50



(c) Current tax assets (net) I 4YMJWHZWWJSYFXXJYX 3.

0.80 228.29

8.00



139.21



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

835.51



24.77 1139.81

 

EQUITY AND LIABILITIES EQUITY: (a) *VZNY^XMFWJHFUNYFQ (b) 4YMJWJVZNY^

19.33



628.26

 

647.59 LIABILITIES: 1.

NON-CURRENT LIABILITIES: (a) Financial liabilities 

N 'TWWT\NSLX



NN 4YMJWĂ SFSHNFQQNFGNQNYNJX



77.66



0.17

G 5WT[NXNTSX H )JKJWWJIYF]QNFGNQNYNJX SJY 2.

77.83



9.22



33.12



CURRENT LIABILITIES: (a) Financial liabilities  

3.

N 'TWWT\NSLX

109.53



(ii) Trade payables

168.30



NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX



39.37 317.20



G 4YMJWHZWWJSYQNFGNQNYNJX

44.10



H 5WT[NXNTSX

10.60



0.15 1139.81

 

3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

Note: (QTXNSLJ]HMFSLJWFYJHTSXNIJWJIKTW:8)FXFYXY2FWHMNX`FSIFXFYXY2FWHMNX`

216

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


STANDALONE STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

 :8)RNQQNTS



:8)RNQQNTS

:8)RNQQNTS

:8)RNQQNTS

CONTINUING OPERATIONS INCOME: 7J[JSZJKWTRTUJWFYNTSX 4YMJWNSHTRJ



709.62



29.87

TOTAL INCOME



739.49

EXPENSES: (TXYTKRFYJWNFQXHTSXZRJI

468.68

5ZWHMFXJXTKXYTHPNSYWFIJ

33.55



(25.06)

 

*RUQT^JJGJSJÁYXJ]UJSXJ

53.40



Finance costs

24.42



)JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

13.67



(MFSLJXNSNS[JSYTWNJXTKÁSNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ

4YMJWJ]UJSXJX





132.55



701.21

TOTAL EXPENSES PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX *]HJUYNTSFQNYJRX SJY PROFIT / (LOSS) BEFORE TAX

38.28



(14.87)

 

23.41

 

TAX EXPENSE: Current tax



3.70

)JKJWWJIYF]2&9HWJINYJSYNYQJRJSY

(1.76)



)JKJWWJIYF] HWJINY

(2.04)

 

PROFIT / (LOSS) FROM CONTINUING OPERATIONS AFTER TAX PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAX 9F]J]UJSXJTKINXHTSYNSZJITUJWFYNTSX

(0.10)



23.51

  

(4.96)



-

PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS AFTER TAX

(4.96)



PROFIT / (LOSS) FOR THE YEAR

18.55

 

OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX  NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

(8.19)

 

0.26



' N .YJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

-



 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

-



OTHER COMPREHENSIVE INCOME FOR THE YEAR

(7.93)

 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

10.62

 

0.04

 

Earnings per share for continuing operations (in USD) Earnings per share for discontinued operations (in USD) Earnings per share (basic and diluted) (in USD)

(0.01)



0.03

 

Note: &[JWFLJJ]HMFSLJWFYJHTSXNIJWJIKTW:8)NSNX`FSINSNX`

FINANCIALS

217


STANDALONE BALANCE SHEET

AS AT 31ST MARCH, 2017

&XFY *ZWTRNQQNTS

&XFY

*ZWTRNQQNTS

*ZWTRNQQNTS

*ZWTRNQQNTS

ASSETS 1.

NON-CURRENT ASSETS: F5WTUJWY^UQFSYFSIJVZNURJSY G(FUNYFQ\TWPNSUWTLWJXX

177.92



1.19



-



I4YMJWNSYFSLNGQJFXXJYX

6.67



(e) Intangible assets under development

4.04



(c) Investment property

K +NSFSHNFQFXXJYX 63.60





NN 1TFSX

0.96





NNN 4YMJWX

6.77



(i) Investments

L 4YMJWSTSHZWWJSYFXXJYX



0.46



261.61 2.

CURRENT ASSETS: (a) Inventories



108.36

(b) Financial assets (i) Investments (ii) Trade receivables 

NNN (FXMFSIHFXMJVZN[FQJSYX



N[ 'FSPGFQFSHJXTYMJWYMFS NNNFGT[J

 

 

80.03



0.18



[ 1TFSX

211.72



[N 4YMJWX

29.48



(c) Current tax assets (net) I 4YMJWHZWWJSYFXXJYX 3.

0.75 213.66

7.48



130.29



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

781.95



23.18 1066.74

 

EQUITY AND LIABILITIES EQUITY: (a) *VZNY^XMFWJHFUNYFQ (b) 4YMJWJVZNY^

18.09



587.98



LIABILITIES: 1.



606.07

NON-CURRENT LIABILITIES: (a) Financial liabilities 

N 'TWWT\NSLX



NN 4YMJWĂ SFSHNFQQNFGNQNYNJX



0.16

G 5WT[NXNTSX H )JKJWWJIYF]QNFGNQNYNJX SJY 2.



72.68 72.84



8.63



30.99



CURRENT LIABILITIES: (a) Financial liabilities  

N 'TWWT\NSLX

102.51



(ii) Trade payables

157.51



NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX

G 4YMJWHZWWJSYQNFGNQNYNJX H 5WT[NXNTSX 3.

3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

Note: (QTXNSLJ]HMFSLJWFYJHTSXNIJWJIKTW*ZWTFXFYXY2FWHMNX`FSIFXFYXY2FWHMNX`

218

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017



36.86 296.88



41.27



9.92



0.14 1066.74

 


STANDALONE STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

 *ZWTRNQQNTS



*ZWTRNQQNTS

*ZWTRNQQNTS

*ZWTRNQQNTS

CONTINUING OPERATIONS INCOME: 7J[JSZJKWTRTUJWFYNTSX 4YMJWNSHTRJ



661.96



27.86

TOTAL INCOME



689.82

EXPENSES: (TXYTKRFYJWNFQXHTSXZRJI

437.20

5ZWHMFXJXTKXYTHPNSYWFIJ

31.30



(23.37)

 

*RUQT^JJGJSJÁYXJ]UJSXJ

49.81



Finance costs

22.78



)JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

12.75



(MFSLJXNSNS[JSYTWNJXTKÁSNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ

4YMJWJ]UJSXJX





123.65



654.12

TOTAL EXPENSES PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX *]HJUYNTSFQNYJRX SJY PROFIT / (LOSS) BEFORE TAX

35.70



(13.87)



21.83



TAX EXPENSE: Current tax



3.45

)JKJWWJIYF]2&9HWJINYJSYNYQJRJSY

(1.65)



)JKJWWJIYF] HWJINY

(1.90)

 

PROFIT / (LOSS) FROM CONTINUING OPERATIONS AFTER TAX PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS BEFORE TAX 9F]J]UJSXJTKINXHTSYNSZJITUJWFYNTSX

(0.10)



21.93

 

(4.63)



-

PROFIT / (LOSS) FROM DISCONTINUED OPERATIONS AFTER TAX

(4.63)



PROFIT / (LOSS) FOR THE YEAR

17.30



OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX  NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

(7.64)

 

0.24



' N .YJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

-



 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

-



OTHER COMPREHENSIVE INCOME FOR THE YEAR

(7.40)

 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

9.90

 

0.04

 

Earnings per share for continuing operations (in Euro) Earnings per share for discontinued operations (in Euro) Earnings per share (basic and diluted) (in Euro)

(0.01)



0.03

 

Note: &[JWFLJJ]HMFSLJWFYJHTSXNIJWJIKTW*ZWTNSNX`FSINSNX`

FINANCIALS

219


CONSOLIDATED BALANCE SHEET

AS AT 31ST MARCH, 2017

&XFY :8)RNQQNTS

&XFY

:8)RNQQNTS

:8)RNQQNTS

:8)RNQQNTS

ASSETS 1.

NON-CURRENT ASSETS: F5WTUJWY^UQFSYFSIJVZNURJSY G(FUNYFQ\TWPNSUWTLWJXX

212.24



4.35



-



(d) Goodwill

22.14



J4YMJWNSYFSLNGQJFXXJYX

28.50



5.13



31.45



(c) Investment property

K .SYFSLNGQJFXXJYXZSIJWIJ[JQTURJSY (g) Financial assets (i) Investments 

NN 1TFSX

1.02



M )JKJWWJIYF]FXXJYX

4.10



N 4YMJWSTSHZWWJSYFXXJYX

0.50

 

309.43 2.

CURRENT ASSETS: (a) Inventories



136.03

(b) Financial assets 0.81



(ii) Trade receivables

289.48



111.73



(i) Investments 

NNN (FXMFSIHFXMJVZN[FQJSYX



N[ 'FSPGFQFSHJXTYMJWYMFS NNNFGT[J

 

5.59



[ 1TFSX

11.76



[N 4YMJWX

26.72



(c) Current tax assets (net) I 4YMJWHZWWJSYFXXJYX 3.

10.88



186.98



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

779.98



481.74 1571.15

 

EQUITY AND LIABILITIES EQUITY: (a) *VZNY^XMFWJHFUNYFQ (b) 4YMJWJVZNY^

19.33



614.66

 

633.99 LIABILITIES: 1.

NON-CURRENT LIABILITIES: (a) Financial liabilities 

N 'TWWT\NSLX



NN 4YMJWĂ SFSHNFQQNFGNQNYNJX



77.69



0.18



77.87 G 5WT[NXNTSX

10.98



H)JKJWWJIYF]QNFGNQNYNJX

40.45



0.14



I 4YMJWSTSHZWWJSYQNFGNQNYNJX 2.

CURRENT LIABILITIES: (a) Financial liabilities  

3.

N 'TWWT\NSLX

109.59



(ii) Trade payables

213.30



NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX



62.35 385.24



G 4YMJWHZWWJSYQNFGNQNYNJX

85.78



H 5WT[NXNTSX

12.97



323.73 1571.15

 

3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

Note: (QTXNSLJ]HMFSLJWFYJHTSXNIJWJIKTW:8)FXFYXY2FWHMNX`FSIFXFYXY2FWHMNX`

220

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

 :8)RNQQNTS



:8)RNQQNTS

:8)RNQQNTS

:8)RNQQNTS

CONTINUING OPERATIONS INCOME: 7J[JSZJKWTRTUJWFYNTSX 4YMJWNSHTRJ



912.06



10.24

TOTAL INCOME



922.30

EXPENSES: (TXYTKRFYJWNFQXHTSXZRJI

588.08



5ZWHMFXJXTKXYTHPNSYWFIJ

35.23



(MFSLJXNSNS[JSYTWNJXTKÁSNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ

(25.06)



*RUQT^JJGJSJÁYXJ]UJSXJ

80.05



Finance costs

28.02



)JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJ

22.35



163.69



4YMJWJ]UJSXJX

892.36



PROFIT BEFORE SHARE OF PROFIT / (LOSS) FROM ASSOCIATES AND JOINT VENTURE, EXCEPTIONAL ITEMS AND TAX

29.94



8MFWJTKUWTÁY QTXXKWTRFXXTHNFYJXFSIOTNSY[JSYZWJ

(0.23)



*]HJUYNTSFQNYJRX SJY

(10.84)

 

PROFIT BEFORE TAX

18.87



TOTAL EXPENSES

TAX EXPENSE: Current tax



7.08

)JKJWWJIYF]2&9HWJINYJSYNYQJRJSY

(1.76)



)JKJWWJIYF] HWJINY

(2.84)

  

2.48 PROFIT FROM CONTINUING OPERATIONS AFTER TAX LOSS FROM DISCONTINUED OPERATIONS BEFORE TAX 9F]J]UJSXJ HWJINYXTKINXHTSYNSZJITUJWFYNTSX



16.39  

(91.13)



(1.62)

LOSS FROM DISCONTINUED OPERATIONS AFTER TAX

(89.51)

 

LOSS FOR THE YEAR

(73.12)

 

(73.15)

 

Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

(0.03)



(73.12)

 

OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

 

(8.60)

 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

0.36



' N .YJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

8.77



 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX



-

OTHER COMPREHENSIVE INCOME FOR THE YEAR

0.53



TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(72.59)

 

(72.63)

 

(0.04)



Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

0.26



Earnings per share for discontinued operations (in USD)

(1.43)

 

Earnings per share (basic and diluted) (in USD)

(1.17)

 

Earnings per share for continuing operations (in USD)

Note: &[JWFLJJ]HMFSLJWFYJHTSXNIJWJIKTW:8)NSNX`FSINSNX`

FINANCIALS

221


CONSOLIDATED BALANCE SHEET

AS AT 31ST MARCH, 2017

&XFY *ZWTRNQQNTS

&XFY

*ZWTRNQQNTS

*ZWTRNQQNTS

*ZWTRNQQNTS

ASSETS 1.

NON-CURRENT ASSETS: F5WTUJWY^UQFSYFSIJVZNURJSY G(FUNYFQ\TWPNSUWTLWJXX

198.63



4.07



-



(d) Goodwill

20.72



J4YMJWNSYFSLNGQJFXXJYX

26.67



4.81



29.43



(c) Investment property

K .SYFSLNGQJFXXJYXZSIJWIJ[JQTURJSY (g) Financial assets (i) Investments 

NN 1TFSX

0.96



M )JKJWWJIYF]FXXJYX

3.84



N 4YMJWSTSHZWWJSYFXXJYX

0.46

 

289.59 2.

CURRENT ASSETS: (a) Inventories



127.31

(b) Financial assets 0.75



(ii) Trade receivables

270.92





NNN (FXMFSIHFXMJVZN[FQJSYX

104.56





N[ 'FSPGFQFSHJXTYMJWYMFS NNNFGT[J

5.23





[ 1TFSX

11.01





[N 4YMJWX

25.01



(i) Investments

(c) Current tax assets (net) I 4YMJWHZWWJSYFXXJYX 3.

10.19



174.99



(ZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LKVWLYH[PVUZ TOTAL ASSETS

729.97



450.86 1470.42

 

EQUITY AND LIABILITIES EQUITY: (a) *VZNY^XMFWJHFUNYFQ (b) 4YMJWJVZNY^

18.09



575.25

 

593.34 LIABILITIES: 1.

NON-CURRENT LIABILITIES: (a) Financial liabilities 

N 'TWWT\NSLX



NN 4YMJWĂ SFSHNFQQNFGNQNYNJX



72.71



0.16



72.87 G 5WT[NXNTSX

10.28



H )JKJWWJIYF]QNFGNQNYNJX

37.86



0.14



I 4YMJWSTSHZWWJSYQNFGNQNYNJX 2.

CURRENT LIABILITIES: (a) Financial liabilities  

3.

N 'TWWT\NSLX

102.57



(ii) Trade payables

199.62



NNN 4YMJWĂ SFSHNFQQNFGNQNYNJX



58.35 360.54



G 4YMJWHZWWJSYQNFGNQNYNJX

80.28



H 5WT[NXNTSX

12.14



302.97 1470.42

 

3PHIPSP[PLZHZZVJPH[LK^P[ONYV\WVMHZZL[ZJSHZZPĂ&#x201A;LKHZOLSKMVYZHSLHUKKPZJVU[PU\LK operations TOTAL EQUITY AND LIABILITIES

Note: (QTXNSLJ]HMFSLJWFYJHTSXNIJWJIKTW*ZWTFXFYXY2FWHMNX`FSIFXFYXY2FWHMNX`

222

CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017


CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE YEAR ENDED 31ST MARCH, 2017

 *ZWTRNQQNTS



*ZWTRNQQNTS

*ZWTRNQQNTS

*ZWTRNQQNTS

CONTINUING OPERATIONS INCOME: 7J[JSZJKWTRTUJWFYNTSX 4YMJWNSHTRJ



850.81



9.55

TOTAL INCOME



860.36

EXPENSES: (TXYTKRFYJWNFQXHTSXZRJI

548.58



5ZWHMFXJXTKXYTHPNSYWFIJ

32.87



(MFSLJXNSNS[JSYTWNJXTKÁSNXMJILTTIX\TWPNSUWTLWJXXFSIXYTHPNSYWFIJ

(23.38)



*RUQT^JJGJSJÁYXJ]UJSXJ

74.67



Finance costs

26.14



)JUWJHNFYNTSFSIFRTWYNXFYNTSJ]UJSXJX

20.85



152.70



4YMJWJ]UJSXJX

832.43



PROFIT BEFORE SHARE OF PROFIT / (LOSS) FROM ASSOCIATES AND JOINT VENTURE, EXCEPTIONAL ITEMS AND TAX

27.93



8MFWJTKUWTÁY QTXXKWTRFXXTHNFYJXFSIOTNSY[JSYZWJ

(0.22)



*]HJUYNTSFQNYJRX SJY

(10.11)

 

PROFIT BEFORE TAX

17.60



TOTAL EXPENSES

TAX EXPENSE: Current tax



6.61

)JKJWWJIYF]2&9HWJINYJSYNYQJRJSY

(1.65)



)JKJWWJIYF] HWJINY

(2.65)

 

PROFIT FROM CONTINUING OPERATIONS AFTER TAX LOSS FROM DISCONTINUED OPERATIONS BEFORE TAX 9F]J]UJSXJ HWJINYXTKINXHTSYNSZJITUJWFYNTSX

2.31



15.29

  

(85.01)



(1.51)

LOSS FROM DISCONTINUED OPERATIONS AFTER TAX

(83.50)

 

LOSS FOR THE YEAR

(68.21)

 

(68.24)

 

Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

(0.03)



(68.21)

 

OTHER COMPREHENSIVE INCOME: & N .YJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

 

(8.03)

 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQSTYGJWJHQFXXNÁJIYTUWTÁYTWQTXX

0.34



' N .YJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX

8.18



 NN .SHTRJYF]WJQFYNSLYTNYJRXYMFY\NQQGJWJHQFXXNÁJIYTUWTÁYTWQTXX



-

OTHER COMPREHENSIVE INCOME FOR THE YEAR

0.49



TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(67.72)

 

(67.75)

 

(0.03)



Attributable to: *VZNY^MTQIJWXTKYMJUFWJSY 3TSHTSYWTQQNSLNSYJWJXYX

0.24



Earnings per share for discontinued operations (in Euro)

(1.33)

 

Earnings per share (basic and diluted) (in Euro)

(1.09)

 

Earnings per share for continuing operations (in Euro)

Note: &[JWFLJJ]HMFSLJWFYJHTSXNIJWJIKTW*ZWTNSNX`FSINSNX`

FINANCIALS

223


POWER CG INDIA TRANSFORMERS

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ESTABLISHMENTS 229


Mumbai 400 042 4HOHYHZO[YH0UKPH Tel   Email hemant.bhagat@cgglobal.com

:OHURHY5HNHY9VHK 9HPW\Y  *OOH[[PZNHYO0UKPH Tel    Email rajesh.gupta@cgglobal.com

Ahmedabad   :HRHY005LHY,SSPZ)YPKNL (OTLKHIHK .\QHYH[0UKPH Tel   Email nirav.shah@cgglobal.com

SOUTHERN REGION

Baroda (Satellite ofďŹ ce) (=Y\UKH]HU*VSVU` 5LHY/HYPUHNHY>H[LY;HUR .V[YP9VHK)HYVKH  .\QHYH[0UKPH Tel  Email nirav.shah@cgglobal.com Indore )(WVSSV;YHKL*LU[YL )9HQNHYO2V[OP 4\TIHP(NYH9VHK 0UKVYL 4HKO`H7YHKLZO0UKPH Email rajesh.gupta@cgglobal.com Pune :Y5VYKĂ&#x2026;VVY (IV]L/Vtel4HNUVSPH 5Y5HJOPRL[7HYR)HULY9VHK 7\UL4HOHYHZO[YH0UKPH Tel   Email sanjaykumar.bahirgonde@cgglobal. com Nagpur UK-SVVY.SVIHS;YHKL*LU[YL Ramakrishna Nagar 7SV[5V(2OHTSH9VHK 5HNW\Y4HOHYHZO[YH0UKPH Email rajesh.gupta@cgglobal.com Raipur (*Y`Z[HS(YJHKL 5LHY3VKOP7HYH:X\HYL

2 3 0 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Regional Head OfďŹ ce: Chennai *YVTW[VU/V\ZL+Y4.9:HSHP 2VKHTIHRRHT/PNO9VHK 5\UNHTIHRRHT Chennai 600 034 ;HTPS5HK\0UKPH Tel  Email arokianathan.r@cgglobal.com Bangalore 17:X\HYLYK-SVVY 5V!YK*YVZZ[O4HPU *OHTYHQWL[)HUNHSVYL 2HYUH[HRH0UKPH Tel    Email baskar.e@cgglobal.com Cochin *:HOPI:VUZ>HYLOV\ZL <K`VNTHUKHS76 Eloor North ,YUHR\SHT2LYHSH0UKPH Email suresh.warrier@cgglobal.com Secunderabad 4PULY]H*VTWSL_Ă&#x2026;VVY :HYVQUP+L]P9VHK :LJ\UKLYHIHK /`KLYHIHK(UKOYH7YHKLZO0UKPH Tel +91 (0)40 40002300 Email prashant.reddy@cgglobal.com

SERVICE CENTRES NORTHERN REGION Gurgaon [O-SVVY=H[PRH*P[`7VPU[ 4.9VHK.\YNHVU /HY`HUH0UKPH Tel    Fax    Email vipin.sahu@cgglobal.com

Jaipur *O\YJO9VHK76)V_ Jaipur 302 001 9HQHZ[OHU0UKPH Tel  Fax  Email sunil.dutt@cgglobal.com sameer.kulkarni@cgglobal.com Jalandhar )?00UK-SVVY 5LHY):-*OV^R3HKV^HSP9VHK 1HSHUKOHY7\UQHI0UKPH Tel   Fax  Email anup.anand@cgglobal.com gurpreet.bhathal@cgglobal.com Lucknow :HYHU*OHTILYZ00YK-SVVY 7HYR9VHK3\JRUV^ <[[HY7YHKLZO0UKPH Tel     Fax   Email kamlesh.sinha@cgglobal.com

EASTERN REGION Kolkata 954\ROLYQLL9VHK2VSRH[H >LZ[)LUNHS0UKPH Tel    Fax   Email subhash.ghosh@cgglobal.com sushanta.roy@cgglobal.com Bhubaneshwar 1HUWH[O;V^LY)HZLTLU[(ZOVR5HNHY <UP[00)O\IHULZO^HY 6YPZZH0UKPH Tel    Fax   Email sushanta.roy@cgglobal.com Patna =PZO^HZHKHU)LOPUK1LL]HU+LLW)\PSKPUN ,HZ[VM5HYTHKH(WHY[TLU[,_OPIP[PVU9VHK 7H[UH )POHY0UKPH


Tel  Email sushanta.roy@cgglobal.com

Ranchi >LZ[LUK7HYR 2HQ\)HNHU5LHY+(=1\UPVY:JOVVS /LOHS9H[\9VHK 9HUJOP 1OHYROHUK0UKPH Tel   Email sushanta.roy@cgglobal.com

Mob  Email sanjaykumar.bahirgonde@cgglobal. com

Nagpur UK-SVVY.SVIHS;YHKL*LU[YL Ramakrishna Nagar 7SV[5V(2OHTSH9VHK 5HNW\Y4HOHYHZO[YH0UKPH Email rajesh.gupta@cgglobal.com

Guwahati :2*3VNPZ[PJZ7YP]H[L3PTP[LK .:9VHK+PZW\Y5LHY*HY.OHY .\^HOH[P (ZZHT0UKPH Tel    Email sushanta.roy@cgglobal.com

Raipur (*Y`Z[HS(YJHKL 5LHY3VKOP7HYH:X\HYL :OHURHY5HNHY9VHK 9HPW\Y  *OOH[[PZNHYO0UKPH Tel    Email rajesh.gupta@cgglobal.com

WESTERN REGION

SOUTHERN REGION

Mumbai >LZ[LYU9LNPVU)\PSKPUNZ[-SVVY 2HUQ\YTHYN,HZ[ 4\TIHP4HOHYHZO[YH0UKPH Tel  Email shrihari.kulkarni@cgglobal.com

Chennai *YVTW[VU/V\ZL+Y4.9:HSHP 2VKHTIHRRHT/PNO9VHK5\UNHTIHRRHT *OLUUHP;HTPS5HK\0UKPH Tel  Email kalanidhi.sathyamoorthy@cgglobal. com

Ahmedabad   :HRHY005LHY,SSPZ)YPKNL (OTLKHIHK .\QHYH[0UKPH Tel   Email nirav.shah@cgglobal.com Indore )(WVSSV;YHKL*LU[YL )9HQNHYO2V[OP 4\TIHP(NYH9VHK 0UKVYL 4HKO`H7YHKLZO0UKPH Email rajesh.gupta@cgglobal.com Pune :Y5VYKÃ&#x2026;VVY (IV]L/V[LS4HNUVSPH 5Y5HJOPRL[7HYR)HULY9VHK 7\UL4HOHYHZO[YH0UKPH

Bangalore 17:X\HYLYK-SVVY 5V!YK*YVZZ[O4HPU *OHTYHQWL[)HUNHSVYL 2HYUH[HRH0UKPH Tel    Email michael.aa@cgglobal.com Secunderabad 4PULY]H*VTWSL_Ã&#x2026;VVY :HYVQUP+L]P9VHK :LJ\UKLYHIHK /`KLYHIHK0UKPH Tel +91 (0)40 40002300 Email satish.m@cgglobal.com ravikumar.vadla@cgglobal.com Cochin *:HOPI:VUZ>HYLOV\ZL

<K`VNTHUKHS76 Eloor North ,YUHR\SHT 2LYHSH0UKPH Email r.ramesh@cgglobal.com

REGION EMEA CORPORATE OFFICES CG Holdings Belgium NV 9LNPZ[LYLK6É&#x2030;JL (U[^LYWZLZ[LLU^LN )4LJOLSLU)LSNP\T Tel Fax CG Electric Systems Hungary Zrt :VYVRZHYP\[ /HSSLY.HYKLUZ6É&#x2030;JL)\PSKPUN*¹[OÃ&#x2026;VVY / )\KHWLZ[/\UNHY` Tel Fax +36 1 266 66 13 CG Power Systems Ireland Ltd 9LNPZ[LYLK6É&#x2030;JL +\ISPU9VHK*H]HU/2= 0YLSHUK Tel  CG Drives & Automation Sweden AB Mörsaregatan 12 )V_ :,/LSZPUNIVYN:^LKLU Tel +46 42 16 99 00 Fax +46 42 16 99 49

BUSINESS UNITS CG Power Systems Belgium NV +PZ[YPI\[PVU;YHUZMVYTLY+P]PZPVU 7V^LY;YHUZMVYTLY+P]PZPVU (U[^LYWZLZ[LLU^LN )4LJOLSLU)LSNP\T Tel Fax CG Power Systems Ireland Ltd +PZ[YPI\[PVU;YHUZMVYTLY+P]PZPVU +\ISPU9VHK/2= *H]HU0YLSHUK

ESTABLISHMENTS 231


Tel 

CG Holdings Belgium NV :`Z[LTZ+P]PZPVU (U[^LYWZLZ[LLU^LN )4LJOLSLU)LSNP\T Tel Fax  CG Holdings Belgium NV :LY]PJLZ+P]PZPVU 9\L=P[HS-YHUJVPZZL)7 )*OHYSLYVP)LSNP\T Tel Fax CG Service Systems France SAS (Siège Social) 7HYJK»(J[P]P[tKLZ/H\[LZ-HSHPZLZ (]LU\L1LHU@VYR -:HPU[3LVUHYK-YHUJL Tel Fax  CG Service Systems France (Agence Sud) 9\L4PJOLS*HaH\_A0*V\Y[PUL -(]PNUVU-YHUJL Tel  Fax  CG Electric Systems Hungary Zrt Gyorgyei ut 14 /;HWPVZaLSL/\UNHY` Tel Fax CG Electric Systems Hungary Zrt. / )\KHWLZ[ :VYVRZmYP\[JH /HSSLY.HYKLUZ6É&#x2030;JL)\PSKPUN[O-SVVY /\UNHY` Tel Fax +36 1 2666613 CG Electric Systems Hungary Zrt, /:aVSUVR 2È®YÂ&#x20AC;ZPÂ&#x201A;[/\UNHY`

2 3 2 CG POWER AND INDUSTRIAL SOLUTIONS LIMITED 2017

Tel Fax

CG Drives & Automation Netherlands BV 7VSHRRLYZ5?)3(+,3 7VZ[I\Z(*)3(+,3 ;OL5L[OLYSHUKZ Tel   Fax  CG Drives & Automation Germany GmbH .PL)LY^LN+>LYUPNLYVKL Germany Tel    Fax   

SALES OFFICES CG Power Solutions UK Ltd *VUJLW[Z/V\ZL >H[JONH[L 5L^I`9VHK0UK\Z[YPHS,Z[H[L /HaLS.YV]L:[VJRWVY[ :2+) <UP[LK2PUNKVT Tel Fax CG Power Solutions UK Ltd -LYYHU[P*V\Y[ :[HÉ&#x2C6;VYKZOPYL;LJOUVSVN`7HYR :[HÉ&#x2C6;VYK:;38 <UP[LK2PUNKVT Tel CG Sales Networks France SA Y\LKL*HTIYHP 0TTL\ISL0»(Y[VPZ CS 90042 - 7HYPZ*LKL_ Tel  CG Sales Networks France S.A. )o[PTLU[*VIHS[(J[PWSLKLSH-VUKLYPL 9V\[LK\;PSSL\S - *HPSSV\_Z\Y-VU[HPULZ Tel

Fax

CG Holdings Belgium NV (SSLLKLY2VZTVUH\[LU(  )LYSPU.LYTHU` Tel +49 (0) 30 64 313 160 CG Power Systems Belgium NV 7SHaH*HYSVZ;YPHZ)LS[YHU 4HKYPK:WHPU Tel  CG Holdings Belgium NV :H\KP(YHIPH9LWYLZLU[H[P]L6É&#x2030;JL 76)V_  6É&#x2030;JL5V -SVVY(S(RHYP`H Olaya Main Street 6SH`H9P`HKO Tel +966 (0)11 419 1463 Fax   CG Middle East FZE +\IHP:PSPJVU6HZPZ/LHK8\HY[LYZ,. 76)V_+\IHP <(, Tel 

REGION AMERICAS BUSINESS UNITS CG Power USA Inc +PZ[YPI\[PVU;YHUZMVYTLY+P]PZPVU 6UL7H\^LSZ+YP]L>HZOPUN[VU 4PZZV\YP <:( Tel +1 636 239 9300 Fax    CG Power USA Inc 7V^LY;YHUZMVYTLY+P]PZPVU  (]HU[OH+YP]L>HZOPUN[VU 4PZZV\YP <:( Tel +1 636 239 9300 Fax +1 636 239 9396 CG Power USA Inc. 5VY[O(TLYPJHU:LY]PJLZ+P]PZPVU *LU[\Y`)\ZPULZZ+YP]L 3HIHKPL4PZZV\YP<:(


Tel +1 636 239 9300 Fax   

CG Power USA Inc -HKLT9VHK :WYPUNÃ&#x201E;LSK51 <:( Tel  

SALES OFFICE CG Power USA Inc 7H\^LSZ+YP]L >HZOPUN[VU4PZZV\YP <:( Tel +1 636 239 9300 Fax    CG Power USA Inc 5>UK(]L:[L 4PHTP-SVYPKH<:( Tel Fax CG Industrial Systems 5>UK(]L:[L 4PHTP-SVYPKH <:( Tel !

REGION SEAP MANUFACTURING PLANTS

Fax 

PT CG Power Systems Indonesia 5L^ALHSHUK6É&#x2030;JL :[L]LUZ:[YLL[>HS[OHT *OYPZ[JO\YJO5L^ALHSHUK Tel  Fax PT CG Power Systems Indonesia (\Z[YHSPH6É&#x2030;JL 3L]LS WWPUN9VHK 5VY[O9`KL4:> Australia Tel CG Sales Network Malaysia Sdn. Bhd. <UP[5V))SVJR) 1HSHU:\UNHP1LYUPO 7\ZH[7LYUPHNHHU:LRZ`LU 7L[HSPUN1H`H4HSH`ZPH Tel   CG Drives & Automation 9LWYLZLU[H[P]L6É&#x2030;JL 9VVT 5V;PHU`HVXPHV9VHK :OHUNOHP.H[L^H`0U[LYUH[PVUHS7SHaH :OHUNOHP*OPUH Tel

PT CG Power Systems Indonesia 7V^LY;YHUZMVYTLY+P]PZPVU 2H^HZHU0UK\Z[YP4LUHYH7LYTHP2H] 1S9H`H5HYVNVUN*PSL\UNZP )VNVY0UKVULZPH Tel Fax

BUSINESS UNIT PT CG Power Systems Indonesia .SVIHS:HSLZ5L[^VYR0UKVULZPH :`Z[LTZ +P]PZPVU (SHTHUKH;V^LY[O-S 10;):PTH[\WHUN2H] *PSHUKHR1HRHY[H 0UKVULZPH Tel 

ESTABLISHMENTS 233


NOTES


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Cg annual repot fy2017